Quarterly report pursuant to Section 13 or 15(d)

Discontinued Operations

v2.4.0.6
Discontinued Operations
 3 Months Ended
Mar. 31, 2013
Discontinued Operations [Abstract]  
Discontinued Operations
(9) Discontinued Operations

In December 2012, we decided to divest and sell our subsidiary ICRC and eliminate our Infrastructure Group.  ICRC's largest contract was with the U.S. Department of Transportation Maritime Administration ("MARAD") for services performed on the Port of Anchorage Intermodal Expansion Project in Alaska (the "PIEP"). The MARAD contract expired on May 31, 2012, when the option year was not exercised by MARAD. Upon evaluating the impact of the elimination of this program from ICRC's business base, we determined that expected financial results of the remaining construction management services business would not justify our continuation of its business. We are in negotiations with a prospective buyer to sell ICRC and expect to close on the transaction during the second quarter of 2013.

 
 
The assets and liabilities to be sold are classified as assets held for sale on our consolidated balance sheet as of March 31, 2013 and are recorded at the lower of their carrying values or fair values less costs to sell. We evaluate our assets and liabilities held for sale using both income and market approaches.  These inputs are considered level 3 fair value measurements.  The goodwill recorded in assets held for sale for ICRC was primarily based on our expectations of a sale price as compared to our estimation of the net assets to be sold at closing. The major categories of the assets and liabilities held for sale are as follows (in thousands):

Assets:
 
 
    Accounts receivable
 
$
2,002
 
    Goodwill
 
 
790
 
Total assets held for sale
 
$
2,792
 
 
 
 
 
 
Liabilities:
 
 
 
 
    Accounts payable
 
$
511
 
Total liabilities held for sale
 
$
511
 

Revenues and costs of ICRC have been reclassified as discontinued operations for all periods presented.  The major categories included in discontinued operations on the consolidated statements of income are as follows (in thousands):

 
 
Three months ended March 31,
 
 
 
2013
 
 
2012
 
Revenues
 
$
71
 
 
$
4,354
 
 
 
 
 
 
 
 
 
 
Loss before income taxes
 
$
(21
)
 
$
(164
)
Income tax benefit
 
 
(8
)
 
 
(63
)
Loss from discontinued operations, net
 
$
(13
)
 
$
(101
)