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DISCONTINUED OPERATIONS
 6 Months Ended
Jun. 30, 2015
DISCONTINUED OPERATIONS [Abstract]  
DISCONTINUED OPERATIONS
18. DISCONTINUED OPERATIONS

On July 31, 2013, the Company completed the sale of Lingo, Inc., iPrimus, USA, Inc., 3620212 Canada Inc., Primus Telecommunications Canada, Telesonic Communications Inc., and Globility Communications Corporation to affiliates of York Capital Management, an investment firm (together “York”), for $129 million. The sale of Primus Telecommunications, Inc. (“PTI”) was also contemplated as part of this transaction but was deferred pending receipt of regulatory approval of such sale. The closing of the sale of PTI, which constituted the remainder of our North America Telecom segment, was completed on July 31, 2014 upon receipt of the necessary regulatory approval. The Company recorded a $13.8 million gain from the sale of this segment during the year ended December 31, 2013. In addition, the purchase agreement contains customary indemnification obligations, representations, warranties and covenants for a transaction of this nature. The Company received $126.0 million, net of $15.25 million held in escrow as part of the initial closing, with an additional $3.0 million held in escrow and paid upon closing of the sale of PTI.
 
Pursuant to the terms of the purchase agreement, $6.45 million of the purchase price was placed in escrow to be released 14 months after the closing date, subject to any deductions required to satisfy indemnification obligations of the Company under the purchase agreement, which amount was released to the Company in October 2014. In addition, $4.0 million of the purchase price was placed in escrow to cover any payments required in connection with the post-closing working capital and cash adjustments, of which $3.2 million was disbursed to the Company and $0.8 million was disbursed to York upon completion of such adjustments in February 2014. The $0.8 million was recorded as an adjustment to the gain that was recorded in 2013, which resulted in a net gain from this transaction of $13.0 million. Furthermore, $4.8 million of the purchase price was placed in escrow to cover certain tax liabilities, which escrow amount will be released after a positive ruling with respect to the underlying matter is received or 30 days after expiration of the applicable statute of limitations relating to the underlying matter. The $4.8 million escrow deposit is recorded in other assets in the condensed consolidated balance sheets, of which $0.4 million is reserved.

Summarized operating results of the discontinued operations are as follows (in thousands):
 
  
Three Months Ended June 30,
  
Six Months Ended June 30,
 
  
2015
  
2014
  
2015
  
2014
 
Net revenue
 
$
-
  
$
3,190
  
$
-
  
$
6,468
 
Operating expenses
  
18
   
3,113
   
37
   
6,342
 
Income (loss) from operations
  
(18
)
  
77
   
(37
)
  
126
 
Interest expense
  
-
   
(3
)
  
-
   
(3
)
Interest income and other income (expense)
  
-
   
(25
)
  
4
   
(51
)
Income (loss) before income tax
  
(18
)
  
49
   
(33
)
  
72
 
Income tax benefit (expense)
  
7
   
(22
)
  
13
   
(28
)
Income (loss) from discontinued operations
 
$
(11
)
 
$
27
  
$
(20
)
 
$
44