Discontinued Operations

9 Months Ended

Sep. 30, 2023

Discontinued Operations and Disposal Groups [Abstract]

Discontinued Operations

We completed the Divestitures in 2022 and reflected the prior period financial results of the Divested Businesses as discontinued operations in our consolidated statements of operations. For the sale of our former Lottery Business completed during the second quarter of 2022, we received $5.7 billion in gross cash proceeds and recorded a pre-tax gain of $4.6 billion. For the sale of our former Sports Betting Business completed during the third quarter of 2022, we received $796 million in gross proceeds and recorded a pre-tax gain of $362 million. The summarized results of our discontinued operations were as follows:

	Three Months Ended September 30, 2022		Nine Months Ended September 30, 2022
Total revenue	$	32	$	371
Total cost of revenue	9		177
Other operating expenses(1)	31		180
Operating (loss) income	(8)		14
Total other income, net	2		10
Net (loss) income from discontinued operations before income taxes	(6)		24
Gain on sale of discontinued operations before income taxes	362		4,930
Total net income from discontinued operations before income taxes	356		4,954
Income tax expense	(41)		(1,099)
Net income from discontinued operations, net of tax included in the consolidated statement of operations	$	315	$	3,855
(1) The three and nine months ended September 30, 2022 include stock-based compensation of $7 million and $18 million, respectively, and $7 million and $85 million, respectively, related to direct transaction closing fees.