Note 3—IDT Financial Services Holding Limited Assets and Liabilities Held for Sale

On June 22, 2017, the Company’s wholly-owned subsidiary IDT Telecom, Inc. (“IDT Telecom”) entered into a Share Purchase Agreement with JAR Fintech Limited (“JAR Fintech”) and JAR Capital Limited to sell the capital stock of IDT Financial Services Holding Limited, a company incorporated under the laws of Gibraltar and a wholly-owned subsidiary of IDT Telecom, to JAR Fintech. IDT Financial Services Holding Limited is the sole shareholder of IDT Financial Services Limited, a Gibraltar-based bank and e-money issuer, providing prepaid card solutions across the European Economic Area. The Share Purchase Agreement provides for an aggregate purchase price for the outstanding equity interests of IDT Financial Services Holding Limited of approximately $3.8 million plus an amount equal to the value of IDT Financial Services Holding Limited’s net assets, to be paid at closing, subject to adjustments relating to customer assets of IDT Financial Services Holding Limited. The net asset value of IDT Financial Services Holding Limited was $14.0 million at July 31, 2017. A portion of the purchase price will be placed in escrow and released to IDT Telecom once all of the conditions have been met under the Share Purchase Agreement. The sale is expected to close in calendar 2017, subject to regulatory approval and other customary conditions set forth in the Share Purchase Agreement.

The pending disposition of IDT Financial Services Holding Limited did not meet the criteria to be reported as a discontinued operation and accordingly, its results of operations and cash flows have not been reclassified. The IDT Financial Services Holding Limited assets and liabilities held for sale included the following:

July 31 (in thousands)	2017		2016
CURRENT ASSETS HELD FOR SALE:
Cash and cash equivalents	$	5,716	$	5,536
Restricted cash and cash equivalents		115,609		98,500
Trade accounts receivable, net of allowance for doubtful accounts of $2,550 and $861 at July 31, 2017 and 2016, respectively		1,844		2,053
Prepaid expenses		758		588
Other current assets		340		407
TOTAL CURRENT ASSETS HELD FOR SALE	$	124,267	$	107,084
NONCURRENT ASSETS HELD FOR SALE:
Property, plant and equipment, net of accumulated depreciation of $228 and $213 at July 31, 2017 and 2016, respectively	$	24	$	40
Other intangibles, net of accumulated amortization of $57 and $37 at July 31, 2017 and 2016, respectively		165		162
Other assets		4,945		4,928
TOTAL NONCURRENT ASSETS HELD FOR SALE	$	5,134	$	5,130
CURRENT LIABILITIES HELD FOR SALE:
Trade accounts payable	$	372	$	456
Accrued expenses		226		166
Deferred revenue		—		478
Customer deposits		114,689		95,843
Other current liabilities		31		20
TOTAL CURRENT LIABILITIES HELD FOR SALE	$	115,318	$	96,963
NONCURRENT LIABILITIES HELD FOR SALE:
Other liabilities	$	550	$	435
TOTAL NONCURRENT LIABILITIES HELD FOR SALE	$	550	$	435

IDT Financial Services Holding Limited is included in the Telecom Platform Services segment. IDT Financial Services Holding Limited’s income before income taxes and income before income taxes attributable to the Company, which is included in the accompanying consolidated statements of income, were as follows:

Year ended July 31 (in thousands)	2017			2016		2015
INCOME BEFORE INCOME TAXES	$	(1,577	)	$	7,532	$	407

INCOME BEFORE INCOME TAXES ATTRIBUTABLE TO IDT CORPORATION	$	(1,577	)	$	7,532	$	407