DISCONTINUED OPERATIONS AND HELD FOR SALE

On June 14, 2018, we entered into a Stock Purchase Agreement with GI pursuant to which we agreed to sell the CBR business to GI for $530.0 million in cash plus cash acquired, subject to ordinary purchase price adjustments. Although we will be providing limited transitional services related to GI for certain agreed-upon sales and marketing, technology, human resources and finance functions for several months post-closing, we will not have further significant involvement in the operations of the CBR business following the close of the sale, which is expected to occur in mid-August 2018. Closing of the transaction is subject to, among other things, no material adverse events occurring prior to closing, delivery by us of certain property-related items, and other customary conditions.

The Company determined that the sale of CBR represents a strategic shift that will have a major effect on our business and therefore met the criteria for classification as discontinued operations at June 30, 2018. All historical operating results for CBR were reflected within discontinued operations in the condensed consolidated statements of operations for all periods presented. Further, all assets and liabilities associated with CBR were classified as assets and liabilities held for sale in our condensed consolidated balance sheets for the periods presented.

We determined that CBR meets the definition of a business and as a result, considered goodwill, allocated on a relative fair value basis, in the carrying value of CBR for purposes of estimating the gain or loss on disposal. We expect to recognize a gain on the sale of CBR upon closing.

Assets and liabilities held for sale were reflected separately in our condensed consolidated balance sheets and were comprised of the following as of June 30, 2018 and December 31, 2017 (in thousands):



	June 30, 2018		December 31, 2017
Assets
Current assets:
Cash	$	59,554	$	29,259
Accounts receivable, net	10,558		12,042
Prepaid transaction costs	3,865		—
Inventories (raw materials)	2,268		2,913
Prepaid and other current assets	916		1,294
Total current assets held for sale	$	77,161	$	45,508

Property, plant and equipment, net	$	18,256	$	18,092
Intangible assets, net	321,841		328,991
Goodwill	216,971		216,971
Other long-term assets	2,071		496
Restricted cash	161		161
Total long-term assets held for sale	$	559,300	$	564,711

Liabilities
Current liabilities:
Accounts payable	$	1,260	$	2,618
Accrued expenses	7,498		8,758
Deferred revenues, short term	44,204		42,494
Total current liabilities held for sale	$	52,962	$	53,870

Deferred revenues, long-term	29,823		24,387
Deferred tax liabilities	67,664		71,046
Other long-term liabilities	798		388
Total long-term liabilities held for sale	$	98,285	$	95,821

The results of operations of the CBR business were classified as discontinued operations for all periods presented in our condensed consolidated financial statements. The following is a summary of net income (loss) from discontinued operations for the three and six months ended June 30, 2018 and 2017:



	Three Months Ended June 30,						Six Months Ended June 30,
	2018			2017			2018			2017
Service revenues, net	$	30,085		$	28,023		$	59,054		$	54,955
Costs and expenses:
Cost of services	5,509			5,562			10,983			10,572
Selling, general and administrative expenses	17,531			22,088			35,150			43,889
Total costs and expenses	23,040			27,650			46,133			54,461
Operating income	7,045			373			12,921			494
Other income	113			—			115			—
Income from discontinued operations	7,158			373			13,036			494
Income tax expense	(1,422		)	(187		)	(3,444		)	(942		)
Net income (loss) from discontinued operations	$	5,736		$	186		$	9,592		$	(448	)

The following table summarizes significant cash activity of the CBR business that were included within the unaudited condensed consolidated statements of cash flows for the respective periods:



	Six Months Ended June 30,
	2018			2017
Net cash provided by operating activities	$	31,642		$	11,637
Net cash used in investing activities	(1,347		)	(1,131		)
Net increase in cash, cash equivalents and restricted cash	30,295			10,506
Cash, cash equivalents and restricted cash at beginning of period	29,419			52,116
Cash, cash equivalents and restricted cash at end of period	$	59,714		$	62,622