Discontinued Operations

9 Months Ended

Sep. 30, 2022

Discontinued Operations and Disposal Groups [Abstract]

Discontinued Operations

Discontinued Operations

On July 1, 2021, pursuant to the previously announced Asset Purchase Agreement (the “Purchase Agreement”), dated May 28, 2021, between Shentel and T-Mobile, Shentel completed the sale to T-Mobile of its Wireless assets and operations for cash consideration of approximately $1.94 billion, inclusive of the approximately $60 million settlement of the waived management fees by Sprint, and net of certain transaction expenses (the “Transaction”).

The assets and liabilities that transferred in the Transaction (the "disposal group") were presented as held for sale within our historical unaudited condensed consolidated balance sheets, and discontinued operations within our historical unaudited condensed consolidated statements of comprehensive (loss) income.

Income from discontinued operations, net of tax, in the unaudited condensed consolidated statements of comprehensive income (loss) consist of the following:

(in thousands)	Three Months Ended September 30, 2021		Nine Months Ended September 30, 2021
Revenue:
Service revenue and other	$	—	$	201,076
Equipment revenue	—		12,253
Total revenue	—		213,329
Operating expenses:
Cost of services	—		38,144
Cost of goods sold	—		11,964
Selling, general and administrative	—		17,514
Severance expense	—		465
Total operating expenses	—		68,087
Operating income	—		145,242
Other (expense) income:
Debt extinguishment	(11,032)		(11,032)
Interest expense and other, net	(733)		(9,434)
Gain on sale of disposition of Wireless assets and operations	1,224,815		1,224,815
Income before income taxes	1,213,050		1,349,591
Income tax expense	326,724		363,227
Income from discontinued operations, net of tax	$	886,326	$	986,364

There was no material income from discontinued operations for the three and nine months ended September 30, 2022.