Discontinued Operations

12 Months Ended

Dec. 31, 2018

Discontinued Operations and Disposal Groups [Abstract]

Discontinued Operations

Note 17. Discontinued Operations

On December 31, 2017, our contract with our low-margin music on demand customer LOEN expired. The activity for this contract represented our only revenue source relating to music on demand services, and we did not renew the sole contract for this service, resulting in the abandonment of the related business. As the exit of the music on demand business represented a strategic shift, and the amounts were financially significant to our consolidated results, at December 31, 2017 we determined this business should be reported as a discontinued operation, and treated it as such beginning in our fourth quarter of 2017.

The following table summarizes the results of operations, which were recorded in our Mobile Services segment, relating to the discontinued operation (in thousands):

	Years ended December 31,
	2018		2017		2016
Net revenue	$	—	$	46,034	$	38,989
Cost of revenue	—		44,612		37,420
Gross profit	—		1,422		1,569
Income taxes	—		313		346
Income from discontinued operations, net of tax	$	—	$	1,109	$	1,223

The following table summarizes the carrying amounts of major classes of assets and liabilities of the discontinued operation (in thousands). These assets and liabilities relate to final settlements of prior year activity between various parties. These balances were fully settled prior to the end of the second quarter of 2018.

	December 31, 2018		December 31, 2017
Trade accounts receivable, net	$	—	$	17,456
Total current assets of discontinued operations	—		17,456
Accounts payable	$	—	$	15,836
Accrued and other current liabilities	—		1,271
Total current liabilities of discontinued operations	$	—	$	17,107

The cash flows related to the discontinued operation have not been segregated, and are included in the Consolidated Statements of Cash Flows. For all periods presented, depreciation and amortization, capital expenditures and significant operating non-cash items from the discontinued operation were not material.