The Company provides for income tax expense related to federal, state, and
foreign income taxes. For the fiscal year ended
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During the fiscal year ended
July 31, 2012, the Company recorded loss from discontinued operations of approximately $10.5 million, as compared to a loss of $16.5 millionfor same period in the prior fiscal year. The $6.0decrease in the loss from discontinued operations is attributable to reduced operating losses within the TFL business of $5.2 millionand $0.8 millionrelated to the execution of a sublease of the Company's previously closed facility, which resulted in an adjustment to the Company's estimate of future minimum lease payments recoverable through sublease receipts.
Liquidity and Capital Resources
In recent years, the Company has financed its operations and met its capital requirements primarily through funds generated from operations, the sale of our securities and borrowings from lending institutions. As of
July 31, 2013, the Company's primary sources of liquidity consisted of cash and cash equivalents of $77.9 million. On October 31, 2012, the Company and certain of its domestic subsidiaries entered into a Credit Agreement (the "Credit Facility") with Wells Fargo Bank, National Associationas lender and agent for the lenders party thereto. The Credit Facility provides a senior secured revolving credit facility up to an initial aggregate principal amount of $50.0 millionor the calculated borrowing base and is secured by substantially all assets of the Company. As of July 31, 2013, the calculated borrowing base was $29.9 million. The Credit Facility terminates on October 31, 2015. Interest on the Credit Facility is based on the Company's options of LIBOR plus 2.5% or the base rate plus 1.5%. The Credit Facility includes one restrictive financial covenant, which is minimum EBITDA, and restrictions that limit the ability of the Company, to among other things, create liens, incur additional indebtedness, make investments, engage in a change of control event, transfer cash to foreign subsidiaries or dispose of assets or property without prior approval from the lenders. The Company did not have any outstanding indebtedness related to the Credit Facility as of July 31, 2013. Consolidated working capital was $114.7 millionat July 31, 2013, compared with $113.5 millionat July 31, 2012. Included in working capital were cash and cash equivalents of $77.9 millionat July 31, 2013and $52.4 millionat July 31, 2012. The increase in working capital is primarily due to the investment of $30.0 millionby Steel Partners on March 12, 2013, partially offset by a $22.7 milliondecrease in the Company's inventory balance and a $6.8 milliondecrease in accounts receivable. During the fourth quarter of 2013 the Company entered into a factoring agreement with a third-party financial institution for the sale of certain accounts receivable, without recourse. See Note 19 to the accompanying consolidated financial statements.