Table of Contents
Business acquisition and related charges
Business acquisition charges primarily represent costs of engaging outside legal, accounting, due diligence, business valuation consultants and accelerated stock option expenses related to business combinations or divestitures. For the nine months ended
August 31, 2013, business acquisition charges of approximately $1.0 millionprimarily related to the sale of the Databus and Sensors operations compared to approximately $3.4 millionfor the nine months ended August 31, 2012, which primarily related to the C-MAC and RTIE acquisitions.
We recorded operating income from continuing operations for the nine months ended
August 31, 2013of approximately $2.1 millioncompared to an operating loss of approximately $8.8 millionfor the nine months ended August 31, 2012. The increase in operating income of approximately $10.9 millionis primarily attributed to lower restructuring and acquisition costs, primarily related to the C-MAC acquisition and EMS restructuring in the nine months ended August 31, 2012, partially offset by lower contribution margin due to lower revenues and higher amortization of intangible assets following the C-MAC acquisition.
Other Expenses (Income)
Total other expense for the nine months ended
August 31, 2013amounted to approximately $23.5 million, compared to other expense of $131.9 millionfor the nine months ended August 31, 2012. The decrease in other expense in the nine month period ended August 31, 2013, compared to the comparable period in 2012 is largely attributable to the write-down of $107.5 millionof goodwill related to our EMS segment and approximately $12.6 millionof discounts related to the convertible subordinated note that converted to shares of Series A Preferred Stock during the quarter ended August 31, 2012(the "Note"), partially offset by the reduction of $2.2 millionfrom previously accrued earn-out payments related to the SenDECacquisition and the write-down of discounts and deferred financing costs of $10.3 millionin the nine months ended August 31, 2013.
Income taxes from continuing operations amounted to a net benefit of approximately
$3.3 millionfor the nine months ended August 31, 2013compared to a net benefit of $4.9 millionin the nine months ended August 31, 2012. The benefit during the nine months ended August 31, 2013, is primarily due to the federal and state benefit on losses from continuing operations and the tax amortization of indefinite lived intangibles, alternative minimum tax and foreign and state taxes incurred during the period. The current provision is less than the statutory tax rate due to valuation allowances placed upon the deferred tax assets. The prior year benefit related to the Company's release of a portion of the valuation allowance as a result of acquiring Spectrum.