Quarterly report pursuant to Section 13 or 15(d)

Discontinued Operations (Tables)

v3.24.3
Discontinued Operations (Tables)
 9 Months Ended
Sep. 30, 2024
Discontinued Operations and Disposal Groups [Abstract]  
Schedule of Discontinued Operations
The components of loss from discontinued operations, net of tax for the three and nine months ended September 30, 2024 and 2023, consist of the following (in thousands):
For the three months ended September 30, For the nine months ended September 30,
2024 2023 2024 2023
Revenues $ —  $ 61,622  $ 26,268  $ 195,507 
Costs and operating expenses
 —  65,202  34,629  199,706 
Loss from discontinued operations —  (3,580) (8,361) (4,199)
Other FDS impairment —  —  4,204  — 
Loss on the sale of discontinued operations —  —  12,663  — 
Total loss before income taxes —  (3,580) (25,228) (4,199)
Provision for income taxes —  (1,026) (6,517) (1,410)
Loss from discontinued operations, net of tax $ —  $ (2,554) $ (18,711) $ (2,789)
The assets and liabilities reported as held-for-sale consist of the following (in thousands):
December 31,
2023
Assets
Cash and cash equivalents $ 162 
Receivables, net
 10,805 
Contract assets 25,109 
Inventories 472 
Other current assets 6,154 
Property and equipment, net 6,102 
Intangible assets, net 3,505 
Goodwill 31,575 
Operating lease right-of-use assets 9,097 
Other assets 21 
    Total assets held-for-sale $ 93,002 
Liabilities
Accounts payable $ 20,893 
Accrued expenses and other current liabilities 19,537 
Long-term operating lease obligations 8,942 
Deferred tax liabilities 4,019 
    Total liabilities held-for-sale $ 53,391 

Certain assets and liabilities previously reported as held-for-sale were excluded from the FDS sale and were reclassified as held and used, at their respective fair values, on the consolidated balance sheets during the first quarter of 2024. The reclassification related to our Alexandria, VA headquarters office space and consisted of an operating lease right-of-use-asset of $7.1 million, property and equipment of $2.6 million, and an operating lease obligation of $11.0 million. During the second quarter of 2024, we vacated the headquarters office space and, as a result, wrote down the associated lease right-of-use asset and property and equipment. During the third quarter of 2024, we terminated the lease for the vacated headquarters office space. See Note (13) "Lease Abandonment, Lease Termination and Other Restructuring Costs" for further information.

The FDS sale resulted in the divestiture of certain government contracts requiring novation. Until the novation process is finalized, we continue to receive cash collections related to these contracts, which are due to the purchaser. As of September 30, 2024, we have recorded a $3.2 million liability for these collections within accrued expenses and other current liabilities on our consolidated balance sheets.

Selected financial information related to cash flows from discontinued operations is as follows (in thousands):

For the nine months ended September 30,
2024 2023
Depreciation and amortization $ 150  $ 1,849 
Purchases of property and equipment $ —  $ 98 
Stock-based compensation $ —  $ 85