Note 2— 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 $13.9 million at October 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 the first quarter of calendar 2018, subject to regulatory approval and other customary conditions set forth in the Share Purchase Agreement. The remaining closing conditions are outside of the Company’s control and there can be no assurance that the sale will be completed.

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:

	October 31, 2017		July 31, 2017
	(in thousands)
Current assets held for sale:
Cash and cash equivalents	$	6,057	$	5,716
Restricted cash and cash equivalents		101,614		115,609
Trade accounts receivable, net of allowance for doubtful accounts of $2,977 and $2,550 at October 31, 2017 and July 31, 2017, respectively		1,681		1,844
Prepaid expenses		866		758
Other current assets		448		340
Total current assets held for sale	$	110,666	$	124,267

Noncurrent assets held for sale:
Property, plant and equipment, net	$	21	$	24
Other intangibles, net		159		165
Other assets		4,966		4,945
Total noncurrent assets held for sale	$	5,146	$	5,134

Current liabilities held for sale:
Trade accounts payable	$	718	$	372
Accrued expenses		272		226
Customer deposits		100,873		114,689
Other current liabilities		80		31
Total current liabilities held for sale	$	101,943	$	115,318

Noncurrent liabilities held for sale:
Other liabilities	$	515	$	550
Total noncurrent liabilities held for sale	$	515	$	550

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

	Three Months Ended October 31,
	2017			2016
	(in thousands)

(Loss) income before income taxes	$	(450	)	$	595

(Loss) income before income taxes attributable to IDT Corporation	$	(450	)	$	595