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| 1 | CSX CORP | As previously reported in March 2009, Greenbrier Hotel Corporation (“GHC”), owner of The Greenbrier resort and then an indirect subsidiary of CSX, filed for Chapter 11 bankruptcy protection in the U.S. Bankruptcy Court for the Eastern District of Virginia, Richmond Division (“Bankruptcy Court”). In conjunction with the bankruptcy, GHC also announced an agreement to sell the resort pursuant to an asset purchase agreement (the “APA”) with Marriott Hotel Services, Inc. In May 2009, CSX sold the stock of a subsidiary that indirectly owned GHC to Justice Family Group, LLC (“JFG”) for approximately $21 million in cash. CSX recognized a gain on the sale of $25 million after tax in the second quarter of 2009. The gain was calculated using cash proceeds, net book value, deal-related costs incurred and tax benefits. The previously reported bankruptcy financing that CSX made available to The Greenbrier was paid down and no amounts were outstanding at the time of the sale. Also in May 2009, the Bankruptcy Court entered an order dismissing GHC’s bankruptcy proceeding and terminating the APA. CSX has no continuing obligations to finance post-sale resort operations. CSX has retained responsibility for certain pre-closing Greenbrier pension obligations. This transaction is reportable as discontinued operations under the subsection Impairment or Disposal of Long-Lived Assets, ASC 360-10-45-2. Therefore, the gain on sale as well as results from operations are reported as discontinued operations. Previously, all amounts associated with the operations of The Greenbrier were included in Other Income - Net. All prior periods have been reclassified to reflect this change. NOTE 11. Discontinued Operations, continued Income statement information:
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| 2 | EXPRESS SCRIPTS INC |
Note 4 — Discontinued operations
On June 30, 2008, we completed the sale of CuraScript Infusion Pharmacy, Inc. (“IP”), our
infusion pharmacy line of business, for $27.5 million which includes a pre-tax gain of
approximately $7.4 million in 2008. Rights to certain working capital balances related to IP were
not sold and are retained on the balance sheet as of September 30, 2009. In the third quarter of
2009, discontinued operations realized net cash flows from operations of $13.1 million, primarily
due to the utilization of a tax benefit in the third quarter of 2009. For a period of time, we
will continue to generate cash flows and statement of operations activity on assets and liabilities
of discontinued operations as these working capital balances wind down, which are not expected to
be material.
The results of operations for IP are reported as discontinued operations for all periods
presented in the accompanying unaudited consolidated statement of operations. Additionally, for
all periods presented, assets and liabilities of the discontinued operations are segregated in the
accompanying unaudited consolidated balance sheet, and cash flows of our discontinued operations
are segregated in our accompanying unaudited consolidated statement of cash flows.
On April 4, 2008, we completed the sale of Custom Medical Products, Inc. and recorded a
pre-tax loss of approximately $1.3 million in the second quarter of 2008.
Certain information with respect to the discontinued operations for the three months and nine
months ended September 30, 2009 and 2008 is summarized as follows:
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| 3 | MOTOROLA INC |
During the nine months ended October 3, 2009, the Company completed the sales of: (i) Good Technology, and (ii) the biometrics business, which included its Printrak trademark. Collectively, the Company received $163 million in net cash and recorded a net gain on sale of the businesses of $175 million before income taxes, which is included in Earnings from discontinued operations, net of tax, in the Company’s condensed consolidated statements of operations. The operating results of these businesses (each of which was formerly included as part of the Enterprise Mobility Solutions segment) through the date of their respective dispositions are reported as discontinued operations in the condensed consolidated financial statements for the period ending October 3, 2009. For all other applicable prior periods, the operating results of these businesses have not been reclassified as discontinued operations, since the results are not material to the Company’s condensed consolidated financial statements.
The following table displays summarized activity in the Company’s condensed consolidated statements of operations for discontinued operations during the nine months ended October 3, 2009, all of which occurred during the three months ended April 4, 2009. The Company had no such activity during the three and nine months ended September 27, 2008.
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| 4 | SCHLUMBERGER LTD /NV/ | 16. Discontinued Operations During the first quarter of 2008, Schlumberger recorded an after-tax gain of $38 million relating to a previously disposed of business that was accounted for as a discontinued operation. |
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| 5 | VORNADO REALTY TRUST | 7. Discontinued OperationsOn September 1, 2009, we sold 1999 K Street, a newly developed 250,000 square foot office building, in Washington’s Central Business District, for $207,800,000 in cash, which resulted in a net gain of $41,211,000. Accordingly, during the third quarter of 2009, we classified this property as a discontinued operation. In addition, we have classified the revenues and expenses of other properties sold or to be sold as “income from discontinued operations” and the related assets and liabilities as “assets related to discontinued operations” and “liabilities related to discontinued operations” for all periods presented in the accompanying consolidated financial statements. The tables below set forth the assets and liabilities related to discontinued operations at September 30, 2009 and December 31, 2008, and the combined results of operations related to discontinued operations for the three and nine months ended September 30, 2009 and 2008.
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