Discontinued Operations

12 Months Ended

Dec. 31, 2015

Discontinued Operations

Discontinued Operations

9.Discontinued Operations

As of December 31, 2013, Blockbuster had ceased material operations.  The results of Blockbuster are presented for all periods as discontinued operations in our consolidated financial statements. 

For the year ended December 31, 2013, the revenue from our discontinued operations was $503 million. “Income (loss) from discontinued operations, before income taxes” for the same period was a loss of $54 million.  In addition, “Income (loss) from discontinued operations, net of tax” for the same period was a loss of $47 million.

Blockbuster - Domestic

Since the Blockbuster Acquisition, we continually evaluated the impact of certain factors, including, among other things, competitive pressures, the ability of significantly fewer company-owned domestic retail stores to continue to support corporate administrative costs, and other issues impacting the store-level financial performance of our company-owned domestic retail stores.  These factors, among others, previously led us to close a significant number of company-owned domestic retail stores during 2012 and 2013.  On November 6, 2013, we announced that Blockbuster would close all of its remaining company-owned domestic retail stores and discontinue the Blockbuster by-mail DVD service.  As of December 31, 2013, Blockbuster had ceased material operations.

Blockbuster - Mexico

During the third quarter 2013, we determined that our Blockbuster operations in Mexico (“Blockbuster Mexico”) were “held for sale.”  As a result, we recorded pre-tax impairment charges of $19 million related to exiting the business, which was recorded in “Income (loss) from discontinued operations, net of tax” on our Consolidated Statements of Operations and Comprehensive Income (Loss) for the year ended December 31, 2013.  On January 14, 2014, we completed the sale of Blockbuster Mexico.