DISCONTINUED OPERATIONS
On December 31, 2013, the company completed the sale of Atlantic Trust to the Canadian Imperial Bank of Commerce (CIBC) for a base purchase price of $210 million less certain working capital and cash funding requirements. Net cash proceeds of $137.0 million were received with further cash proceeds estimated at $59 million due in the first half of 2014.
The results of Atlantic Trust, together with expenses and the gain associated with the sale, are reflected as discontinued operations in the Consolidated Statements of Income and are therefore excluded from the continuing operations of Invesco. Comparative periods shown in the Consolidated Statements of Income have been adjusted to conform with this presentation.
The following table presents the major classes of assets and liabilities that were disposed of on December 31, 2013:
|
| | |
| As of |
$ in millions | December 31, 2013 |
Assets | |
Receivables and other assets | 52.0 |
|
Property and equipment, net | 13.7 |
|
Intangible assets, net | 2.2 |
|
Goodwill | 74.5 |
|
Total assets | 142.4 |
|
Liabilities | |
Accrued expenses | 24.3 |
|
Total liabilities | 24.3 |
|
The components of income from discontinued operations, net of tax, were as follows for the twelve months ended December 31, 2013, 2012, and 2011, respectively.
|
| | | | | | | | |
| Years ended December 31, |
$ in millions | 2013 | | 2012 | | 2011 |
Operating revenue | 162.6 |
| | 126.6 |
| | 109.8 |
|
Operating expenses | (139.2 | ) | | (97.7 | ) | | (93.9 | ) |
Gain on sale | 77.5 |
| | — |
| | — |
|
Income from discontinued operations before income taxes | 100.9 |
| | 28.9 |
| | 15.9 |
|
Income tax provision | (36.4 | ) | | (10.8 | ) | | (6.0 | ) |
Income from discontinued operations, net of taxes | 64.5 |
| | 18.1 |
| | 9.9 |
|
In conjunction with the sale, the company recorded a pre-tax gain of $77.5 million, which is included within discontinued operations, net of taxes, in the accompanying Consolidated Statement of Income for the year ended December 31, 2013.
