Annual report pursuant to Section 13 and 15(d)

Discontinued operations

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Discontinued operations
 12 Months Ended
Sep. 30, 2013
Discontinued operations  
Discontinued operations

20. Discontinued operations

        During the year ended September 30, 2013, the Company incurred costs in legal proceedings related to a discontinued operation. See "Note 12. Commitments and contingencies" for more details on this matter.

        The Company continues to record gains on the sale of Unison MAXIMUS, Inc., a business which was sold in May 2008. The consideration for the sale included a promissory note which is fully reserved. Small payments continue to be received on this note but owing to uncertainties over the collectability of the full balance, the Company has only recorded a gain on sale where recovery is considered assured, which is typically when cash payments are received. The Company recorded gains on sale of $0.4 million, $0.1 million and $0.3 million for the years ended September 30, 2013, 2012 and 2011, respectively.

        The Company's results in fiscal year 2011 include the effects of the sale of our ERP business, which took place during fiscal year 2010. During fiscal year 2011, the Company resolved a dispute with the buyer of the business and recorded a pre-tax loss of $1.7 million.

        The following table summarizes the operating results of the discontinued operations included in the Consolidated Statements of Operations (in thousands):

 
   Year Ended September 30,  
 
   2013   2012   2011  

Loss from operations before income taxes

   $ (1,053 ) $ —   $ (219 )

Benefit from income taxes

     (418 )   —     (86 )
               

Loss from discontinued operations

   $ (635 ) $ —   $ (133 )
               

Gain (loss) on disposal before income taxes

   $ 398   $ 57   $ (1,390 )

Provision for (benefit from) income taxes

     157     23     (549 )
               

Gain/(loss) on disposal

   $ 241   $ 34   $ (841 )
               

Income (loss) from discontinued operations

   $ (394 ) $ 34   $ (974 )
               

        The Company made net payments of approximately $0.7 million in fiscal 2011 related to discontinued operations. These payments principally related to the settlement of customer and employee payments following the sale of the ERP business.