Discontinued Operations

6 Months Ended

Jun. 30, 2022

Discontinued Operations and Disposal Groups [Abstract]

Discontinued Operations

During the second quarter of 2022, we completed the previously announced divestiture of the Lottery Business, received $5.7 billion in gross cash proceeds and recorded a pre-tax gain on sale of the Lottery Business of $4.6 billion.

We have reflected the financial results of the Lottery Business and Sports Betting Business as discontinued operations in our consolidated statements of operations and reflected the assets and liabilities of these businesses as held for sale in our consolidated balance sheets, for all periods presented and until the completion of disposition of these businesses.

The summarized results of our discontinued operations were as follows:

	Three Months Ended June 30,				Six Months Ended June 30,
	2022		2021		2022		2021
Total revenue	$	51	$	299	$	339	$	575
Total cost of revenue(1)	18		144		168		283
Other operating expenses(2)	108		60		149		120
Operating (loss) income	(75)		95		22		172
Total other income, net	—		71		7		73
Net (loss) income from discontinued operations before income taxes	(75)		166		29		245
Gain on sale of Lottery Business before income taxes	4,568		—		4,568		—
Total net income from discontinued operations before income taxes	4,493		166		4,597		245
Income tax expense	(1,048)		(2)		(1,057)		(2)
Net income from discontinued operations, net of tax included in the consolidated statement of operations	$	3,445	$	164	$	3,540	$	243
(1) Excludes D&A.
(2) Includes D&A of $27 million and $53 million for the three and six months ended June 30, 2021, respectively, along with stock-based compensation of $4 million and $11 million for the three and six months ended June 30, 2022, respectively, and $5 million and $9 million for the three and six months ended June 30, 2021, respectively. Due to the discontinued operations classification of these businesses as of the third quarter of 2021, the D&A for these businesses has ceased and none was included for the three and six months ended June 30, 2022. The three and six months ended June 30, 2022 also include $78 million related to direct transaction closing fees.

The following table summarizes the major classes of assets and liabilities of businesses held for sale.

	As of
	June 30, 2022		December 31, 2021
ASSETS
Cash and cash equivalents	$	43	$	44
Restricted cash	—		22
Receivables, net	40		214
Inventories	—		94
Prepaid expenses deposits and other current assets	23		123
Total current assets of businesses held for sale	106		497
Property and equipment, net	8		217
Intangible assets and software, net	163		304
Goodwill	242		623
Equity investments	—		251
Other assets	16		82
Total non-current assets of businesses held for sale	429		1,477
Total assets of businesses held for sale	$	535	$	1,974
LIABILITIES
Accounts payable	$	1	$	95
Accrued liabilities and other	25		187
Total current liabilities of businesses held for sale	26		282
Operating lease liabilities	8		34
Other	34		90
Total non-current liabilities of businesses held for sale	42		124
Total liabilities of businesses held for sale	$	68	$	406