Document_and_Entity_Informatio
Document and Entity Information | 3 Months Ended | |
Dec. 31, 2013 | Jan. 31, 2014 | |
Document and Entity Information | ' | ' |
Entity Registrant Name | 'COMDISCO HOLDING CO INC | ' |
Entity Central Index Key | '0001179484 | ' |
Document Type | '10-Q | ' |
Document Period End Date | 31-Dec-13 | ' |
Amendment Flag | 'false | ' |
Current Fiscal Year End Date | '--09-30 | ' |
Entity Current Reporting Status | 'Yes | ' |
Entity Filer Category | 'Smaller Reporting Company | ' |
Entity Common Stock, Shares Outstanding | ' | 4,028,951 |
Document Fiscal Year Focus | '2014 | ' |
Document Fiscal Period Focus | 'Q1 | ' |
Consolidated_Statements_of_Com
Consolidated Statements of Comprehensive Income (Loss) (USD $) | 3 Months Ended | |
In Thousands, except Per Share data, unless otherwise specified | Dec. 31, 2013 | Dec. 31, 2012 |
Revenue | ' | ' |
Gain on sale of equity investments | $2 | $112 |
Interest income | 28 | 30 |
Total revenue | 30 | 142 |
Costs and expenses | ' | ' |
Selling, general and administrative | 662 | 629 |
Contingent Distribution Rights | 399 | 58 |
Foreign exchange loss | 161 | 53 |
Bad debt recoveries | -29 | -17 |
Total costs and expenses | 1,193 | 723 |
Net loss before income taxes | -1,163 | -581 |
Income tax expense | 56 | 12 |
Net loss | -1,219 | -593 |
Unrealized gains on securities: | ' | ' |
Unrealized holding gains arising during the period | 1,612 | 0 |
Other comprehensive income | 1,612 | 0 |
Comprehensive income (loss) | $393 | ($593) |
Basic and diluted net loss per common share (in dollars per share) | ($0.30) | ($0.15) |
Consolidated_Balance_Sheets
Consolidated Balance Sheets (USD $) | Dec. 31, 2013 | Sep. 30, 2013 |
In Thousands, unless otherwise specified | ||
ASSETS | ' | ' |
Cash and cash equivalents | $27,822 | $27,671 |
Cash - legally restricted | 4,000 | 4,000 |
Short-term investment | 4,184 | 4,340 |
Equity investments | 2,314 | 697 |
Income tax receivable | 0 | 753 |
Assets held in trust for deferred compensation plan | 491 | 490 |
Other assets | 312 | 353 |
Total assets | 39,123 | 38,304 |
LIABILITIES AND STOCKHOLDERS' EQUITY | ' | ' |
Accounts payable | 84 | 88 |
Income taxes payable | 1,090 | 1,076 |
Other liabilities: | ' | ' |
Accrued compensation | 1,321 | 1,304 |
Contingent Distribution Rights | 11,705 | 11,306 |
Other liabilities | 168 | 168 |
Total other liabilities | 13,194 | 12,778 |
Total liabilities | 14,368 | 13,942 |
Stockholders' equity | ' | ' |
Common Stock $.01 par value. Authorized 10,000,000 shares; originally issued 4,200,000 shares; 4,028,951 shares issued and outstanding at December 31, 2013 and September 30, 2013 | 70 | 70 |
Additional paid-in capital | 28,414 | 28,414 |
Accumulated other comprehensive income | 1,615 | 3 |
Accumulated deficit | -5,344 | -4,125 |
Total stockholders' equity | 24,755 | 24,362 |
Total liabilities and stockholders' equity | $39,123 | $38,304 |
Consolidated_Balance_Sheets_Pa
Consolidated Balance Sheets (Parenthetical) (USD $) | Dec. 31, 2013 | Sep. 30, 2013 |
Consolidated Balance Sheets | ' | ' |
Common Stock, par value (in dollars per share) | $0.01 | $0.01 |
Common Stock, Authorized shares | 10,000,000 | 10,000,000 |
Common Stock originally issued shares | 4,200,000 | 4,200,000 |
Common Stock shares issued | 4,028,951 | 4,028,951 |
Common Stock shares outstanding | 4,028,951 | 4,028,951 |
Consolidated_Statements_of_Cas
Consolidated Statements of Cash Flows (USD $) | 3 Months Ended | |
In Thousands, unless otherwise specified | Dec. 31, 2013 | Dec. 31, 2012 |
Cash flows from operating activities: | ' | ' |
Equity investment proceeds net of sharing | $2 | $112 |
Bad debt recoveries, interest and other revenue | 34 | 28 |
Selling, general and administrative expenses | -593 | -551 |
Income tax net receipts | 731 | 0 |
Net cash provided by (used in) operating activities | 174 | -411 |
Effect of exchange rates on cash and cash equivalents | -23 | -8 |
Net increase (decrease) in cash and cash equivalents | 151 | -419 |
Cash and cash equivalents at beginning of period | 27,671 | 29,349 |
Cash and cash equivalents at end of period | $27,822 | $28,930 |
Consolidated_Statements_of_Cas1
Consolidated Statements of Cash Flows - Continued (USD $) | 3 Months Ended | |
In Thousands, unless otherwise specified | Dec. 31, 2013 | Dec. 31, 2012 |
Reconciliation of net loss to net cash provided by (used in) operating activities: | ' | ' |
Net loss | ($1,219) | ($593) |
Adjustments to reconcile net loss to net cash provided by (used in) operating activities: | ' | ' |
Taxes payable and other tax balances | 56 | 12 |
Change in Canadian income tax receivables/payables | 731 | 0 |
Contingent Distribution Rights | 399 | 58 |
Receivables | -16 | -17 |
Selling, general and administrative expenses | 69 | 54 |
Other, including foreign exchange | 154 | 75 |
Net cash provided by (used in) operating activities | $174 | ($411) |
Reorganization
Reorganization | 3 Months Ended |
Dec. 31, 2013 | |
Reorganization | ' |
Reorganization | ' |
1. Reorganization | |
On July 16, 2001, Comdisco, Inc. and 50 of its domestic subsidiaries filed voluntary petitions for relief under Chapter 11 of the United States Bankruptcy Code in the United States Bankruptcy Court for the Northern District of Illinois, Eastern Division (the “Bankruptcy court”) (consolidated case number 01-24795). Comdisco Holding Company, Inc., as the successor company to Comdisco, Inc., emerged from bankruptcy under the Plan that became effective on August 12, 2002. For financial reporting purposes only, however, the effective date for implementation of fresh-start reporting was July 31, 2002. | |
Comdisco Holding Company, Inc. (the “Company”) was formed on August 8, 2002 for the purpose of selling, collecting or otherwise reducing to money in an orderly manner the remaining assets of the Company and all of its direct and indirect subsidiaries, including Comdisco, Inc. The Company’s business purpose is limited to the orderly sale or collection of all its remaining assets. Pursuant to the Plan and restrictions contained in its Certificate, the Company is specifically prohibited from engaging in any business activities inconsistent with its limited business purpose. | |
Litigation Trust: In February 1998, pursuant to Comdisco, Inc.’s Shared Investment Plan (the “SIP”), 106 employees (the “SIP Participants”) took out full recourse, personal loans to purchase approximately six million shares of Comdisco, Inc.’s common stock. In connection therewith, Comdisco, Inc. executed a guaranty dated February 2, 1998 (the “Guaranty”) providing a guaranty of the loans in the event of default by the SIP Participants to the lenders under the SIP (the “SIP Lenders”). The Company and the SIP Lenders subsequently reached a settlement on the Guaranty that was approved by the Bankruptcy court on December 9, 2004. The Plan and the litigation trust agreement provided that, under certain circumstances, subrogation rights that the Company may have against the SIP Participants and their respective promissory notes be placed in a trust for the benefit of the C-4 creditors (the “Trust Assets”). Under the Plan, the Litigation Trust is solely responsible for collection of amounts due on the promissory notes of the sixty-nine SIP Participants who did not take advantage of the SIP Relief (as defined in the Plan). The Company has a limited indemnification obligation to the litigation trustee under the litigation trust agreement. | |
SIP Litigation: On February 4, 2005, the Litigation Trust commenced lawsuits both in the United States District Court for the Northern District of Illinois (the “Federal SIP Lawsuits”) and in the Circuit Court of Cook County Illinois (the “State SIP Lawsuits”) to collect on the remaining SIP Participants’ promissory notes. | |
Federal SIP Lawsuits: The Litigation Trust filed and a federal district court judge entered summary judgments (and amended judgments) against all but one of the SIP Participants who were defendants in the federal cases (the “Federal SIP Defendants”) on their respective SIP promissory notes, and the Litigation Trust commenced collection actions against them. Additionally, the federal district court judge entered orders directing that certain CDRs and related proceeds held by the estate of Comdisco, Inc. and Computershare (f/k/a BNY Mellon) (holder of CDRs) on behalf of those Federal SIP Defendants be turned over to the Litigation Trust. Pursuant to such orders, the Company turned over CDRs and related proceeds and will continue to do so if additional orders are entered. | |
The Federal SIP Defendants filed appeals on those judgments. On October 18, 2010, the Seventh Circuit affirmed the rulings in favor of the Litigation Trust, but remanded certain fraud issues to the trial court. On November 1, 2010, the Federal SIP Defendants filed a petition for a hearing before the full appellate panel. On June 28, 2011, the Seventh Circuit ruled vacating the summary judgments and remanding the cases for further proceedings. | |
Following a series of motions, hearings and the completion of discovery, at a hearing on July 8, 2013, Judge Robert Gettleman set a trial date for September 23, 2013 and set a pretrial conference on August 29, 2013. The trial’s actual start date was September 24, 2013 and the witness testimony and evidentiary phase was substantially completed on October 10, 2013. On October 15, 2013, the judge set an initial post-trial briefing schedule, which was amended on December 17, 2013 to establish January 24, 2014 as the date Joint Submission of Facts are to be filed, February 7, 2014 as the date for opening post trial briefs, February 28, 2014 as the date for response briefs to be filed and April 16, 2014 as the date for Oral Arguments. On January 27, 2014, the Joint Submission of Facts was filed. On January 30, 2014, the judge amended the post-trial briefing schedule and set February 21, 2014 for opening briefs to be filed and set March 14, 2014 for responsive briefs to be filed. | |
State SIP Lawsuits: The Litigation Trust filed summary judgments against all of the SIP Participants who are defendants in the state cases (the “State SIP Defendants”, and, together with the Federal SIP Defendants, the “SIP Defendants”). Three of the State SIP Defendants filed Cross Motions for Summary Judgment. A hearing in the Circuit Court of Cook County on all of the summary judgment motions in the state cases was held on May 12, 2010, and the judge granted the summary judgments in favor of the Litigation Trust and denied the various motions for summary judgment filed by the State SIP Defendants. | |
On January 25, 2013, Judge Tailor set: March 1, 2013 as the deadline for served and pending discovery; the expert discovery cut-off date as May 31, 2013; and, a trial date for August 5 through 23, 2013. On July 11, 2013, an agreed order was entered changing the trial date to August 12, 2013. | |
All but one State SIP Defendants and the litigation trustee entered into an agreed Stipulation And Order (the “Stipulation”) which, among other things, stays the trials in the state cases pending the resolution and any appeal of the trial in the federal cases. On August 12, 2013, the Stipulation was approved by Judge Tailor. At the status hearing on November 19, 2013, the judge set the next status hearing for April 29, 2014. | |
Litigation Trust Reports: By early 2005, sixty-nine SIP Participant’s promissory notes were transferred to the Litigation Trust. As reported in various Status Reports of Comdisco Litigation Trustee, of the sixty-nine SIP Participants: forty-one have settled or otherwise resolved their obligation; twelve have filed personal bankruptcy; and, sixteen notes remain outstanding (five in the federal court and eleven in the state court). During the quarter ended December 31, 2013, the Litigation Trust reached one settlement, which leaves the total number of promissory notes settled or otherwise resolved by the Litigation Trust at forty-one. | |
For more details regarding the Litigation Trust and related proceedings, please refer to the Status Reports of Comdisco Litigation Trustee filed quarterly in the Bankruptcy court. Any proceeds collected by the Litigation Trust, net of expenses, will be considered Trust Assets and distributed in accordance with the Plan and the litigation trust agreement. | |
Basis_of_Presentation_and_Rece
Basis of Presentation and Recently Issued Accounting Pronouncements | 3 Months Ended |
Dec. 31, 2013 | |
Basis of Presentation and Recently Issued Accounting Pronouncements | ' |
Basis of Presentation and Recently Issued Accounting Pronouncements | ' |
2. Basis of Presentation and Recently Issued Accounting Pronouncements | |
The accompanying unaudited interim consolidated financial statements have been prepared pursuant to the rules of the SEC for quarterly reports on Form 10-Q and do not include all of the information and note disclosures required by accounting principles generally accepted in the United States of America. The information furnished herein includes all adjustments, consisting of normal recurring adjustments except where indicated, which are, in the opinion of management, necessary for a fair presentation of the results of operations for these interim periods. | |
The results of operations for the three months ended December 31, 2013 are not necessarily indicative of the results to be expected for the entire fiscal year ending September 30, 2014. | |
These financial statements should be read in conjunction with our audited consolidated financial statements and notes thereto as of and for the year ended September 30, 2013 included in the Annual Report on Form 10-K, as filed with the SEC on December 11, 2013. | |
The preparation of financial statements in conformity with accounting principles generally accepted in the United States of America requires management to make estimates and assumptions that affect the amounts reported in the consolidated financial statements and the related notes. Actual results could differ from these estimates and may affect future results of operations and cash flows. We have evaluated subsequent events through the date of this filing. We do not believe there are any material subsequent events which would require further disclosure, except as otherwise presented in these footnotes. | |
From time to time, new accounting pronouncements are issued by the Financial Accounting Standards Board or other standard setting bodies that are adopted by the Company as of the specified effective date. Unless otherwise discussed, the Company believes that the impact of recently issued standards that are not yet effective will not have a material impact on the Company’s consolidated financial statements upon adoption. | |
Equity_Investments
Equity Investments | 3 Months Ended |
Dec. 31, 2013 | |
Equity Investments | ' |
Equity Investments | ' |
3. Equity Investments | |
The Company’s estimate of the fair value of its private company investments was made in consultation with Windspeed Acquisition Fund GP, LLC (“Windspeed”), a professional management group which the Company engaged in February 2004, who manages the Company’s investments in equity securities on an ongoing basis. Windspeed shares in the net receipts from the sale of the Company’s investments in equity securities at a set percentage in certain designated portions of the portfolio of companies. The Windspeed management agreement was extended on April 5, 2011 (with an effective date of February 21, 2011) until February 20, 2013 (the “Initial Extension”). The Windspeed management agreement was again extended effective February 21, 2013 through February 20, 2015 (the “Second Extension”). Prior to the Initial Extension, Windspeed received fixed and declining management fees. Under the terms of the Initial and Second Extensions, Windspeed is not, and will not, be paid any ongoing management fees. In lieu of such management fee payment, 100% of any proceeds from certain companies in the portfolio will go to Windspeed. Realized gains on the sale of equity securities continue to be reduced by sharing amounts under the management agreement. Additionally, Windspeed shares in the net receipts from the sale of the Company’s investments in certain of the Company’s equity securities at a set percentage. The Company has received approximately $71,042,000 in proceeds (prior to management fees and sharing) since the inception of the management agreement with Windspeed. Windspeed has received a combined $12,779,000 in management fees and sharing through December 31, 2013. Management fees are expensed when incurred and realized gains on the sale of Equity Investments are reduced by sharing amounts under the management agreement. | |
Realized gains or losses are recorded on the trade date based upon the difference between the proceeds and the cost basis determined using the specific identification method. Net realized gains are included in revenue in the consolidated statements of operations. | |
Marketable equity securities: | |
Changes in the valuation of available-for-sale securities are included as changes in the unrealized holding gains (losses) in accumulated other comprehensive income (loss). At December 31, 2013, the Company owned shares in Concur Technologies, Inc. (“Concur”) within Equity Investments as presented on the balance sheet in the amount of approximately $1,617,000. These shares were uncovered in the quarter ended December 31, 2013 by the Company’s independent third party asset recovery firm. On February 12, 2014, the Company received the net cash proceeds for the sale of the Concur shares in the amount of approximately $1,589,000. | |
In addition, the Company holds a limited number of securities in trust for a deferred compensation plan which are not available for distribution under the Plan. | |
The Company’s practice is to work in conjunction with Windspeed to sell its marketable equity securities within a reasonable period of time after the expiration of the lockup period utilizing various timing strategies which seek to maximize the return to the Company. However, in the future, there is no assurance as to whether or not the Company either will be able to liquidate such positions held for any lockup period or realize any amount on such positions. | |
Equity investments in private companies: | |
The Company’s policy for assessing the carrying value of equity investments in privately held companies is, in consultation with Windspeed, to regularly review and estimate the fair value of these securities. | |
The Company identifies and records impairment losses on equity securities when market and customer specific events and circumstances indicate the carrying value might be impaired. All write-downs are considered permanent impairments for financial reporting purposes. | |
Income_Taxes
Income Taxes | 3 Months Ended |
Dec. 31, 2013 | |
Income Taxes | ' |
Income Taxes | ' |
4. Income Taxes | |
The Company files income tax returns in the U.S. federal jurisdiction, the State of Illinois and Canada. | |
As of the date of this filing, the federal tax years open to examination in the U.S. are fiscal years ended September 30, 2010 through September 30, 2012. | |
The Company’s Canadian subsidiary, Comdisco Canada Limited (“CCL”), has completed the resolution of several tax matters with federal and provincial tax authorities in Canada. During the fiscal year ended September 30, 2013, the Company completed final negotiations with the Ontario Ministry of Finance related to its Notices of Objection filed for the tax years ended September 30, 2000 and 2001 and recognized the resulting tax benefit. During the quarter ended December 31, 2013, CCL received tax refunds totaling approximately $733,000 from Ontario and paid a tax liability of $2,000 to the provincial government of Alberta, Canada. The Company has commenced the liquidation of CCL. | |
The open federal tax years for the Canadian subsidiary are tax years ended September 30, 1998, 1999, 2002 and 2009, as well as March 31, 2010 through 2013. The open tax years for the province of Ontario are tax years ended September 30, 1998, 2008 and 2009, as well as March 31, 2010 through 2013. The open tax year for the provinces of Quebec and Alberta is the tax year ended September 30, 1999. | |
Uncertain Tax Positions: | |
As of December 31, 2013, the income tax liabilities included in the Company’s consolidated balance sheets all relate to CCL and include $144,000 in net uncertain tax positions, $679,000 in interest and penalties for the uncertain tax positions and $267,000 in withholding tax liability on an anticipated liquidating distribution arising on liquidation of CCL for a total of $1,090,000. | |
Stockholders_Equity
Stockholders' Equity | 3 Months Ended | |||||||||||||||||
Dec. 31, 2013 | ||||||||||||||||||
Stockholders' Equity | ' | |||||||||||||||||
Stockholders' Equity | ' | |||||||||||||||||
5. Stockholders’ Equity | ||||||||||||||||||
As of December 31, 2013, the Company had 4,028,951 shares of Common Stock issued and outstanding. | ||||||||||||||||||
Stockholders’ equity consists of the following (in thousands): | ||||||||||||||||||
Common | Additional | Accumulated | Retained | Total | ||||||||||||||
stock | paid-in | other | earnings | |||||||||||||||
capital | comprehensive | (accumulated | ||||||||||||||||
income | deficit) | |||||||||||||||||
Balance at September 30, 2013 | $ | 70 | $ | 28,414 | $ | 3 | $ | -4,125 | $ | 24,362 | ||||||||
Comprehensive income (loss) | ||||||||||||||||||
Net loss | -1,219 | -1,219 | ||||||||||||||||
Other comprehensive income | 1,612 | 1,612 | ||||||||||||||||
Balance at December 31, 2013 | $ | 70 | $ | 28,414 | $ | 1,615 | $ | -5,344 | $ | 24,755 | ||||||||
Other_Financial_Information
Other Financial Information | 3 Months Ended | |||||||
Dec. 31, 2013 | ||||||||
Other Financial Information | ' | |||||||
Other Financial Information | ' | |||||||
6. Other Financial Information | ||||||||
The Company holds legally restricted cash in the amount of $4,000,000 as of December 31, 2013 and September 30, 2013 which is an indemnification reserve set aside by the Company for any potential indemnified losses in lieu of the litigation trustee purchasing insurance coverage. | ||||||||
Other liabilities consist of the following (in thousands): | ||||||||
December 31, | September 30, | |||||||
2013 | 2013 | |||||||
Accrued compensation | $ | 1,321 | $ | 1,304 | ||||
CDRs | 11,705 | 11,306 | ||||||
Other liabilities | 168 | 168 | ||||||
$ | 13,194 | $ | 12,778 | |||||
The liability for accrued compensation includes payroll and estimated amounts payable under the Company’s Bankruptcy court approved compensation plans. | ||||||||
The Company estimates the CDR liability based on the net equity of the Company after taking into consideration future operating costs and expenses, and other expected cash inflows in excess of book value, including estimated future interest income, estimated recoveries and the potential net distributions from the Litigation Trust for which estimates are currently not determinable. | ||||||||
Other liabilities include an accrued VAT liability of approximately $168,000 for a foreign jurisdiction. | ||||||||
Financial_Information_by_Geogr
Financial Information by Geographic Area | 3 Months Ended |
Dec. 31, 2013 | |
Financial Information by Geographic Area | ' |
Financial Information by Geographic Area | ' |
7. Financial Information by Geographic Area | |
Since the year ended September 30, 2013, all revenues generated and assets held are in North America. | |
Fair_Value_Measurements
Fair Value Measurements | 3 Months Ended | |||||||||||||||||||||||
Dec. 31, 2013 | ||||||||||||||||||||||||
Fair Value Measurements | ' | |||||||||||||||||||||||
Fair Value Measurements | ' | |||||||||||||||||||||||
8. Fair Value Measurements | ||||||||||||||||||||||||
The three levels of inputs used to measure fair value are as follows: | ||||||||||||||||||||||||
· Level 1 - Quoted prices in active markets for identical assets and liabilities | ||||||||||||||||||||||||
· Level 2 - Quoted prices in active markets for similar assets and liabilities, or other inputs that are observable for the asset or liability, either directly or indirectly, for substantially the full term of the financial instrument. | ||||||||||||||||||||||||
· Level 3 - Unobservable inputs that are supported by little or no market activity and that are significant to the fair value of the assets and liabilities. This includes certain pricing models, discounted cash flow methodologies and similar techniques that use significant unobservable inputs. | ||||||||||||||||||||||||
The Company’s financial assets that are measured at fair value on a recurring basis are measured using Level 1 and Level 2 inputs. However, the Company records the carrying value of its private equity investments at lower of cost or fair market value which is measured using Level 3 inputs. | ||||||||||||||||||||||||
The Company has included a tabular disclosure for financial assets that are measured at fair value on a recurring basis in the consolidated balance sheet as of the period ending December 31, 2013 and the year ending September 30, 2013. The Company currently holds no financial liabilities that are measured at fair value on a recurring basis. | ||||||||||||||||||||||||
December 31, 2013 | ||||||||||||||||||||||||
Level 1 | Level 2 | Level 3 | Total | |||||||||||||||||||||
Fair Value | ||||||||||||||||||||||||
Assets | ||||||||||||||||||||||||
Money market accounts | $ | 26,550,000 | $ | 0 | $ | 0 | $ | 26,550,000 | ||||||||||||||||
Certificates of deposit | 0 | 4,184,000 | 0 | 4,184,000 | ||||||||||||||||||||
Equity investments (A) | 1,617,000 | 0 | 8,875,000 | 10,492,000 | ||||||||||||||||||||
Assets held in trust for deferred compensation plan (B) | 491,000 | 0 | 0 | 491,000 | ||||||||||||||||||||
Total | $ | 28,658,000 | $ | 4,184,000 | $ | 8,875,000 | $ | 41,717,000 | ||||||||||||||||
September 30, 2013 | ||||||||||||||||||||||||
Level 1 | Level 2 | Level 3 | Total | |||||||||||||||||||||
Fair Value | ||||||||||||||||||||||||
Assets | ||||||||||||||||||||||||
Money market accounts | $ | 26,845,000 | $ | 0 | $ | 0 | $ | 26,845,000 | ||||||||||||||||
Certificates of deposit | 0 | 4,340,000 | 0 | 4,340,000 | ||||||||||||||||||||
Equity investments (A) | 0 | 0 | 8,875,000 | 8,875,000 | ||||||||||||||||||||
Assets held in trust for deferred compensation plan (B) | 490,000 | 0 | 0 | 490,000 | ||||||||||||||||||||
Total | $ | 27,335,000 | $ | 4,340,000 | $ | 8,875,000 | $ | 40,550,000 | ||||||||||||||||
(A) Equity investments Level 1 include stock in one public company and Level 3 includes stock in three privately held companies. | ||||||||||||||||||||||||
(B) Assets held in trust for deferred compensation plan are made up of bonds, equity and money market funds that are actively traded. | ||||||||||||||||||||||||
These assets are held in a Rabbi Trust for the benefit of deferred employee compensation and are not available for distribution under the Plan. | ||||||||||||||||||||||||
Reconciliation of financial assets measured at fair value on a recurring basis using Level 3 inputs for the period ended December 31, 2013 and the year ended September 30, 2013 is as follows: | ||||||||||||||||||||||||
Fair Value | Realized | Change in | Decrease due to | Increase due to | Decrease in | Decrease due to | Fair Value | |||||||||||||||||
September 30, | (net of fees) | Unrealized | impairment | purchase | cost basis | transfer from | December | |||||||||||||||||
2013 | Estimated Value | of assets | of shares | due to sale | Level 3 to Level 1 | 31, 2013 | ||||||||||||||||||
Level 3 only | $8,875,000 | $ | (0 | ) | $ | 0 | $ | 0 | $ | 0 | $ | 0 | $ | 0 | $8,875,000 | |||||||||
Equity investments | ||||||||||||||||||||||||
Fair Value | Realized | Change in | Decrease due to | Increase due to | Decrease in | Decrease due to | Fair Value | |||||||||||||||||
September 30, | (net of fees) | Unrealized | impairment | purchase of | cost basis | transfer from | September | |||||||||||||||||
2012 | Estimated Value | of assets | shares | due to sale | Level 3 to Level 1 | 30, 2013 | ||||||||||||||||||
Level 3 only | $5,166,000 | $ (112,000 | ) | $3,821,000 | $ 0 | $ 0 | $ 0 | $ 0 | $8,875,000 | |||||||||||||||
Equity investments | ||||||||||||||||||||||||
In accordance with the provisions of ASC Topic 320, “Accounting for Certain Investments in Debt and Equity Securities,” marketable equity investments (equity investments having a readily determinable fair value) would have a carrying value and a fair value based on quoted market prices. The Company’s practice is to sell its marketable equity investments upon the expiration of the lock-up period. | ||||||||||||||||||||||||
Equity investments in private companies consist primarily of small investments in three private companies. Preferred stock investments are carried at the lower of cost or fair market value in the Company’s financial statements. The carrying value of equity investments in private companies is $697,000 and the fair market value measured using Level 3 inputs is $8,875,000, net of sharing. These investments are subject to significant volatility and are difficult to value. The fair value of the Company’s equity investments in private companies was determined in consultation with Windspeed based on the market approach, including, but not limited to, quoted trading levels for publicly-traded securities in similar industries and/or markets, industry and company multiples, industry acceptance in the market place, liquidity discounts due to lock ups, estimated revenue, and customer, product and market share growth by the respective companies in the portfolio. Substantially all of these factors are outside the control of the Company and are subject to significant volatility. There can be no assurance that the Company will be able to realize the estimated fair market value. Furthermore, as of December 31, 2013, the total portfolio of three companies which has an estimated fair market value of $8,875,000 is subject to significant concentration risk, as follows: 99% of such value is in two individual companies, and approximately 93% of such value is in one individual company. |
Subsequent_Events
Subsequent Events | 3 Months Ended |
Dec. 31, 2013 | |
Subsequent Events | ' |
Subsequent Events | ' |
9. Subsequent Events | |
During the month ended January 31, 2014, the Company redeemed its certificate of deposit held in Canada in anticipation of the liquidation of CCL. The amount of the redemption on January 22, 2014 was approximately $4,112,000. | |
As discussed in Note 3, on February 12, 2014, the Company received the net cash proceeds for the sale of the Concur shares in the amount of approximately $1,589,000. | |
As of the date of this filing, CCL is in the process of initiating the liquidating distribution to the Company. | |
Stockholders_Equity_Tables
Stockholders' Equity (Tables) | 3 Months Ended | |||||||||||||||||
Dec. 31, 2013 | ||||||||||||||||||
Stockholders' Equity | ' | |||||||||||||||||
Schedule of components of stockholders' equity | ' | |||||||||||||||||
Stockholders’ equity consists of the following (in thousands): | ||||||||||||||||||
Common | Additional | Accumulated | Retained | Total | ||||||||||||||
stock | paid-in | other | earnings | |||||||||||||||
capital | comprehensive | (accumulated | ||||||||||||||||
income | deficit) | |||||||||||||||||
Balance at September 30, 2013 | $ | 70 | $ | 28,414 | $ | 3 | $ | -4,125 | $ | 24,362 | ||||||||
Comprehensive income (loss) | ||||||||||||||||||
Net loss | -1,219 | -1,219 | ||||||||||||||||
Other comprehensive income | 1,612 | 1,612 | ||||||||||||||||
Balance at December 31, 2013 | $ | 70 | $ | 28,414 | $ | 1,615 | $ | -5,344 | $ | 24,755 | ||||||||
Other_Financial_Information_Ta
Other Financial Information (Tables) | 3 Months Ended | |||||||
Dec. 31, 2013 | ||||||||
Other Financial Information | ' | |||||||
Schedule of components of other liabilities | ' | |||||||
Other liabilities consist of the following (in thousands): | ||||||||
December 31, | September 30, | |||||||
2013 | 2013 | |||||||
Accrued compensation | $ | 1,321 | $ | 1,304 | ||||
CDRs | 11,705 | 11,306 | ||||||
Other liabilities | 168 | 168 | ||||||
$ | 13,194 | $ | 12,778 |
Fair_Value_Measurements_Tables
Fair Value Measurements (Tables) | 3 Months Ended | |||||||||||||||||||||||
Dec. 31, 2013 | ||||||||||||||||||||||||
Fair Value Measurements | ' | |||||||||||||||||||||||
Schedule of financial assets that are measured at fair value on a recurring basis | ' | |||||||||||||||||||||||
December 31, 2013 | ||||||||||||||||||||||||
Level 1 | Level 2 | Level 3 | Total | |||||||||||||||||||||
Fair Value | ||||||||||||||||||||||||
Assets | ||||||||||||||||||||||||
Money market accounts | $ | 26,550,000 | $ | 0 | $ | 0 | $ | 26,550,000 | ||||||||||||||||
Certificates of deposit | 0 | 4,184,000 | 0 | 4,184,000 | ||||||||||||||||||||
Equity investments (A) | 1,617,000 | 0 | 8,875,000 | 10,492,000 | ||||||||||||||||||||
Assets held in trust for deferred compensation plan (B) | 491,000 | 0 | 0 | 491,000 | ||||||||||||||||||||
Total | $ | 28,658,000 | $ | 4,184,000 | $ | 8,875,000 | $ | 41,717,000 | ||||||||||||||||
September 30, 2013 | ||||||||||||||||||||||||
Level 1 | Level 2 | Level 3 | Total | |||||||||||||||||||||
Fair Value | ||||||||||||||||||||||||
Assets | ||||||||||||||||||||||||
Money market accounts | $ | 26,845,000 | $ | 0 | $ | 0 | $ | 26,845,000 | ||||||||||||||||
Certificates of deposit | 0 | 4,340,000 | 0 | 4,340,000 | ||||||||||||||||||||
Equity investments (A) | 0 | 0 | 8,875,000 | 8,875,000 | ||||||||||||||||||||
Assets held in trust for deferred compensation plan (B) | 490,000 | 0 | 0 | 490,000 | ||||||||||||||||||||
Total | $ | 27,335,000 | $ | 4,340,000 | $ | 8,875,000 | $ | 40,550,000 | ||||||||||||||||
(A) Equity investments Level 1 include stock in one public company and Level 3 includes stock in three privately held companies. | ||||||||||||||||||||||||
(B) Assets held in trust for deferred compensation plan are made up of bonds, equity and money market funds that are actively traded. | ||||||||||||||||||||||||
These assets are held in a Rabbi Trust for the benefit of deferred employee compensation and are not available for distribution under the Plan. | ||||||||||||||||||||||||
Schedule of reconciliation of financial assets measured at fair value on a recurring basis using Level 3 inputs | ' | |||||||||||||||||||||||
Fair Value | Realized | Change in | Decrease due to | Increase due to | Decrease in | Decrease due to | Fair Value | |||||||||||||||||
September 30, | (net of fees) | Unrealized | impairment | purchase | cost basis | transfer from | December | |||||||||||||||||
2013 | Estimated Value | of assets | of shares | due to sale | Level 3 to Level 1 | 31, 2013 | ||||||||||||||||||
Level 3 only | $8,875,000 | $ | (0 | ) | $ | 0 | $ | 0 | $ | 0 | $ | 0 | $ | 0 | $8,875,000 | |||||||||
Equity investments | ||||||||||||||||||||||||
Fair Value | Realized | Change in | Decrease due to | Increase due to | Decrease in | Decrease due to | Fair Value | |||||||||||||||||
September 30, | (net of fees) | Unrealized | impairment | purchase of | cost basis | transfer from | September | |||||||||||||||||
2012 | Estimated Value | of assets | shares | due to sale | Level 3 to Level 1 | 30, 2013 | ||||||||||||||||||
Level 3 only | $5,166,000 | $ (112,000 | ) | $3,821,000 | $ 0 | $ 0 | $ 0 | $ 0 | $8,875,000 | |||||||||||||||
Equity investments | ||||||||||||||||||||||||
Reorganization_Details
Reorganization (Details) | 1 Months Ended | 3 Months Ended | 24 Months Ended | 99 Months Ended | 0 Months Ended | 1 Months Ended | ||
In Millions, unless otherwise specified | Feb. 28, 2010 | Feb. 28, 2005 | Feb. 28, 1998 | Dec. 31, 2013 | Dec. 31, 2005 | Dec. 31, 2013 | Jul. 16, 2001 | Feb. 28, 1998 |
item | item | item | item | item | item | Predecessor | Predecessor | |
subsidiary | ||||||||
Reorganization | ' | ' | ' | ' | ' | ' | ' | ' |
Number of domestic subsidiaries filed voluntary petitions for relief under Chapter 11 | ' | ' | ' | ' | ' | ' | 50 | ' |
Number of participants who took out full recourse, personal loans to purchase shares of the entity's common stock | ' | ' | 106 | ' | ' | ' | ' | ' |
Number of shares of Comdisco, Inc.'s common stock purchased by the SIP Participants | ' | ' | ' | ' | ' | ' | ' | 6 |
Number of SIP Participants for which the Litigation Trust is solely responsible for collection of amounts due on the promissory notes | ' | ' | 69 | ' | ' | ' | ' | ' |
Number of SIP Participants against whom summary judgments were not entered by a federal district court judge | ' | 1 | ' | ' | ' | ' | ' | ' |
Number of SIP Participants who filed Cross Motions for Summary Judgment | 3 | ' | ' | ' | ' | ' | ' | ' |
Number of SIP notes transferred to the Litigation Trust | ' | ' | ' | ' | 69 | ' | ' | ' |
Number of SIP Participants who have settled or otherwise resolved their obligation | ' | ' | ' | ' | ' | 41 | ' | ' |
Number of SIP Participants who filed personal bankruptcy | ' | ' | ' | ' | ' | 12 | ' | ' |
Number of cases remain outstanding | ' | ' | ' | 16 | ' | ' | ' | ' |
Number of cases remain outstanding in federal court | ' | ' | ' | 5 | ' | ' | ' | ' |
Number of cases remain outstanding in state court | ' | ' | ' | 11 | ' | ' | ' | ' |
Equity_Investments_Details
Equity Investments (Details) (USD $) | Dec. 31, 2013 | Sep. 30, 2013 | Dec. 31, 2013 | Feb. 12, 2014 | Dec. 31, 2013 | Feb. 21, 2011 | Dec. 31, 2013 |
Concur | Concur | Management Agreement With Windspeed Member | Windspeed | Windspeed | |||
Subsequent event | |||||||
Equity Investments | ' | ' | ' | ' | ' | ' | ' |
Percentage of proceeds from certain companies in the portfolio that will go to Windspeed | ' | ' | ' | ' | ' | 100.00% | ' |
Proceeds from sale of equity investments prior to Windspeed's management fees and sharing | ' | ' | ' | ' | $71,042,000 | ' | ' |
Payment of management fees and sharing | ' | ' | ' | ' | ' | ' | 12,779,000 |
Equity investments | 2,314,000 | 697,000 | 1,617,000 | ' | ' | ' | ' |
Net cash proceeds from sale of Concur shares | ' | ' | ' | $1,589,000 | ' | ' | ' |
Income_Taxes_Details
Income Taxes (Details ) (USD $) | Dec. 31, 2013 | Sep. 30, 2013 | Dec. 31, 2013 | Dec. 31, 2013 | Dec. 31, 2013 |
CCL | Province of Ontario tax authority | Provincial government of Alberta, Canada | |||
CCL | CCL | ||||
Income Taxes | ' | ' | ' | ' | ' |
Tax refunds received | ' | ' | ' | $733,000 | ' |
Amount paid | ' | ' | ' | ' | 2,000 |
Net balance of income tax liability if realized, would impact the effective tax rate | ' | ' | 144,000 | ' | ' |
Accrued interest and penalties for the uncertain tax positions | ' | ' | 679,000 | ' | ' |
Withholding tax liability on a liquidating distribution | ' | ' | 267,000 | ' | ' |
Income tax liabilities | $1,090,000 | $1,076,000 | $1,090,000 | ' | ' |
Stockholders_Equity_Details
Stockholders' Equity (Details) (USD $) | 3 Months Ended | ||
In Thousands, except Share data, unless otherwise specified | Dec. 31, 2013 | Dec. 31, 2012 | Sep. 30, 2013 |
Stockholders' Equity | ' | ' | ' |
Shares of common stock issued | 4,028,951 | ' | 4,028,951 |
Shares of common stock outstanding | 4,028,951 | ' | 4,028,951 |
Stockholder's equity | ' | ' | ' |
Balance at the beginning of the period | $24,362 | ' | ' |
Comprehensive income (loss): | ' | ' | ' |
Net loss | -1,219 | -593 | ' |
Other comprehensive income | 1,612 | 0 | ' |
Balance at the end of the period | 24,755 | ' | ' |
Common stock | ' | ' | ' |
Stockholder's equity | ' | ' | ' |
Balance at the beginning of the period | ' | ' | 70 |
Comprehensive income (loss): | ' | ' | ' |
Balance at the end of the period | 70 | ' | 70 |
Additional paid-in capital | ' | ' | ' |
Stockholder's equity | ' | ' | ' |
Balance at the beginning of the period | ' | ' | 28,414 |
Comprehensive income (loss): | ' | ' | ' |
Balance at the end of the period | 28,414 | ' | 28,414 |
Accumulated other comprehensive income | ' | ' | ' |
Stockholder's equity | ' | ' | ' |
Balance at the beginning of the period | 3 | ' | ' |
Comprehensive income (loss): | ' | ' | ' |
Other comprehensive income | 1,612 | ' | ' |
Balance at the end of the period | 1,615 | ' | ' |
Retained earnings (accumulated deficit) | ' | ' | ' |
Stockholder's equity | ' | ' | ' |
Balance at the beginning of the period | -4,125 | ' | ' |
Comprehensive income (loss): | ' | ' | ' |
Net loss | -1,219 | ' | ' |
Balance at the end of the period | ($5,344) | ' | ' |
Other_Financial_Information_De
Other Financial Information (Details) (USD $) | Dec. 31, 2013 | Sep. 30, 2013 |
Other Financial Information | ' | ' |
Cash - legally restricted | $4,000,000 | $4,000,000 |
Components of other liabilities | ' | ' |
Accrued compensation | 1,321,000 | 1,304,000 |
CDRs | 11,705,000 | 11,306,000 |
Other liabilities | 168,000 | 168,000 |
Total other liabilities | 13,194,000 | 12,778,000 |
Accrued VAT liability for a foreign jurisdiction | $168,000 | ' |
Fair_Value_Measurements_Detail
Fair Value Measurements (Details) (USD $) | 3 Months Ended | ||||||||||||||||||||||||||||||||||||||||||
Dec. 31, 2013 | Dec. 31, 2013 | Dec. 31, 2013 | Dec. 31, 2013 | Sep. 30, 2013 | Dec. 31, 2013 | Sep. 30, 2013 | Dec. 31, 2013 | Sep. 30, 2013 | Dec. 31, 2013 | Sep. 30, 2013 | Dec. 31, 2013 | Sep. 30, 2013 | Dec. 31, 2013 | Sep. 30, 2013 | Dec. 31, 2013 | Sep. 30, 2013 | Dec. 31, 2013 | Sep. 30, 2013 | Dec. 31, 2013 | Sep. 30, 2013 | Dec. 31, 2013 | Sep. 30, 2013 | Dec. 31, 2013 | Sep. 30, 2013 | Dec. 31, 2013 | Sep. 30, 2013 | Dec. 31, 2013 | Sep. 30, 2013 | Dec. 31, 2013 | Sep. 30, 2013 | Dec. 31, 2013 | Sep. 30, 2013 | Dec. 31, 2013 | Sep. 30, 2013 | Dec. 31, 2013 | Sep. 30, 2013 | Dec. 31, 2013 | Sep. 30, 2013 | Dec. 31, 2013 | Sep. 30, 2013 | Dec. 31, 2013 | Sep. 30, 2013 | |
Equity investments (A) | Level 1 | Level 3 | Recurring basis | Recurring basis | Recurring basis | Recurring basis | Recurring basis | Recurring basis | Recurring basis | Recurring basis | Recurring basis | Recurring basis | Recurring basis | Recurring basis | Recurring basis | Recurring basis | Recurring basis | Recurring basis | Recurring basis | Recurring basis | Recurring basis | Recurring basis | Recurring basis | Recurring basis | Recurring basis | Recurring basis | Recurring basis | Recurring basis | Recurring basis | Recurring basis | Recurring basis | Recurring basis | Recurring basis | Recurring basis | Recurring basis | Recurring basis | Recurring basis | Recurring basis | Recurring basis | Recurring basis | Recurring basis | Recurring basis | |
item | Equity investments (A) | Equity investments (A) | Level 1 | Level 1 | Level 1 | Level 1 | Level 1 | Level 1 | Level 1 | Level 1 | Level 1 | Level 1 | Level 2 | Level 2 | Level 2 | Level 2 | Level 2 | Level 2 | Level 2 | Level 2 | Level 2 | Level 2 | Level 3 | Level 3 | Level 3 | Level 3 | Level 3 | Level 3 | Level 3 | Level 3 | Level 3 | Level 3 | Total Fair Value | Total Fair Value | Total Fair Value | Total Fair Value | Total Fair Value | Total Fair Value | Total Fair Value | Total Fair Value | Total Fair Value | Total Fair Value | |
item | item | Money market accounts | Money market accounts | Certificates of deposit | Certificates of deposit | Equity investments (A) | Equity investments (A) | Assets held in trust for deferred compensation plan (B) | Assets held in trust for deferred compensation plan (B) | Money market accounts | Money market accounts | Certificates of deposit | Certificates of deposit | Equity investments (A) | Equity investments (A) | Assets held in trust for deferred compensation plan (B) | Assets held in trust for deferred compensation plan (B) | Money market accounts | Money market accounts | Certificates of deposit | Certificates of deposit | Equity investments (A) | Equity investments (A) | Assets held in trust for deferred compensation plan (B) | Assets held in trust for deferred compensation plan (B) | Money market accounts | Money market accounts | Certificates of deposit | Certificates of deposit | Equity investments (A) | Equity investments (A) | Assets held in trust for deferred compensation plan (B) | Assets held in trust for deferred compensation plan (B) | ||||||||||
Fair Value Measurements | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Liabilities Fair Value | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | $0 | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Assets Fair Value | ' | ' | ' | $28,658,000 | $27,335,000 | $26,550,000 | $26,845,000 | $0 | $0 | $1,617,000 | $0 | $491,000 | $490,000 | $4,184,000 | $4,340,000 | $0 | $0 | $4,184,000 | $4,340,000 | $0 | $0 | $0 | $0 | $8,875,000 | $8,875,000 | $0 | $0 | $0 | $0 | $8,875,000 | $8,875,000 | $0 | $0 | $41,717,000 | $40,550,000 | $26,550,000 | $26,845,000 | $4,184,000 | $4,340,000 | $10,492,000 | $8,875,000 | $491,000 | $490,000 |
Number of public companies in which the entity has made equity investments | ' | 1 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Carrying value of equity investments in public and private companies | 3 | ' | 3 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Fair_Value_Measurements_Detail1
Fair Value Measurements (Details 2) (USD $) | 3 Months Ended | 12 Months Ended |
Dec. 31, 2013 | Sep. 30, 2013 | |
item | ||
Reconciliation of financial assets measured at fair value on a recurring basis using Level 3 inputs | ' | ' |
Carrying value of equity investments in public and private companies | $2,314,000 | $697,000 |
Equity investments | ' | ' |
Reconciliation of financial assets measured at fair value on a recurring basis using Level 3 inputs | ' | ' |
Fair value at the beginning of the period | 8,875,000 | 5,166,000 |
Realized (net of fees) | 0 | -112,000 |
Change in Unrealized Estimated Value | 0 | 3,821,000 |
Decrease due to impairment of assets | 0 | 0 |
Increase due to purchase of shares | 0 | 0 |
Decrease in cost basis due to sale | 0 | 0 |
Decrease due to transfer from Level 3 to Level 1 | 0 | 0 |
Fair value at the end of the period | 8,875,000 | 8,875,000 |
Number of privately held companies in which the entity has made equity investments | 3 | ' |
Equity investments | Investment concentration risk | ' | ' |
Reconciliation of financial assets measured at fair value on a recurring basis using Level 3 inputs | ' | ' |
Number of privately held companies in which the entity has made equity investments | 3 | ' |
Equity investments | Investment concentration risk | Two individual companies | ' | ' |
Reconciliation of financial assets measured at fair value on a recurring basis using Level 3 inputs | ' | ' |
Concentration risk (as a percent) | 99.00% | ' |
Number of individual companies in which the entity has investments | 2 | ' |
Equity investments | Investment concentration risk | One individual company | ' | ' |
Reconciliation of financial assets measured at fair value on a recurring basis using Level 3 inputs | ' | ' |
Concentration risk (as a percent) | 93.00% | ' |
Number of individual companies in which the entity has investments | 1 | ' |
Equity investments | Investment concentration risk | Three private companies | ' | ' |
Reconciliation of financial assets measured at fair value on a recurring basis using Level 3 inputs | ' | ' |
Carrying value of equity investments in public and private companies | $697,000 | ' |
Subsequent_Events_Details
Subsequent Events (Details) (Subsequent event, USD $) | Jan. 22, 2014 | Feb. 12, 2014 |
Concur | ||
Subsequent Events | ' | ' |
Amount of redemption of certificate of deposit held in Canada | $4,112,000 | ' |
Net cash proceeds from sale of Concur shares | ' | $1,589,000 |