Assets Held for Sale

6 Months Ended

Jun. 30, 2021

Discontinued Operations and Disposal Groups [Abstract]

Assets-Held-For-Sale

The Company classifies assets-held-for-sale when management approves and commits to a formal plan of sale with the expectation the sale will be completed within one year. The net assets of the business held for sale are then recorded at the lower of their current carrying value or the fair market value, less costs to sell.

During the first quarter of 2021, the Company committed to a plan to sell certain Voice assets in the United Kingdom as they were determined to be non-core assets. Such assets are recorded within the Voice, Backup, Security, and CPP reportable segment. On February 9, 2021, in a cash transaction, the Company sold the Voice assets. As of June 30, 2021, the total gain recognized on the sale was $2.8 million which was recorded in gain on sale of businesses on the Condensed Consolidated Statement of Operations.

During the first quarter of 2021, the Company committed to a plan to sell its B2B Backup business as it was determined to be a non-core business. The business is recorded within the Voice, Backup, Security, and CPP reportable segment.

During the second quarter of 2021, the Company received an offer to purchase the B2B Backup business. Management has determined that the fair value of the business less cost to sell is lower than its carrying amount. As a result, the Company recorded an impairment to goodwill of $32.6 million which was recorded in impairment of business on the Condensed Consolidated Statement of Operations (see Note 8 - Goodwill and Intangible Assets).

The following table presents information related to the assets and liabilities that were classified as held for sale in our Condensed Consolidated Balance Sheet (in thousands):


	June 30, 2021
Accounts receivable, net of allowance of $346	$	6,513
Prepaid expenses and other current assets		2,426
Property and equipment, net		10,161
Operating lease right-of-use assets		15,181
Trade names, net		3,886
Customer relationships, net		8,131
Goodwill		48,632
Other purchased intangibles, net		776
Deferred income taxes, noncurrent		11,326
Other assets		94
Total assets held for sale	$	107,126

Accounts payable and accrued expenses	$	2,720
Income taxes payable, current		155
Deferred revenue, current		2,650
Operating lease liabilities, current		2,875
Other current liabilities		393
Deferred revenue, noncurrent		4
Operating lease liabilities, noncurrent		11,915
Deferred income taxes, noncurrent		563
Other long-term liabilities		170
Total liabilities held for sale	$	21,445