Discontinued Operations (Tables)

9 Months Ended

Sep. 30, 2017

Discontinued Operations And Disposal Groups [Abstract]

Summary of Discontinued Operations, Income Statement, Balance Sheet and Cash Flow

The financial results of the Entertainment segment through September 30, 2017 are presented as income from discontinued operations, net of income taxes, in our condensed consolidated statement of operations.  The following table presents financial results of the Entertainment segment for the Current Quarter, Current Nine Months, the three months ended September 30, 2016 (“Prior Year Quarter”) and the nine months ended September 30, 2016 (“Prior Year Nine Months”):

	Three Months Ended September 30,						Nine Months Ended September 30,
	2017			2016			2017			2016
	(unaudited)						(unaudited)
Licensing revenue	$	—		$	30,487		$	53,129		$	84,977
Selling, general and administrative expenses		—			20,761			34,542			57,281
Depreciation and amortization		—			139			303			408
Operating income		—			9,587			18,284			27,288
Other expenses (income):
Interest expense		—			6,543			12,973			14,726
Interest income		—			(189	)		(180	)		(548	)
Loss on extinguishment of debt		2,308			—			31,554			—
Foreign currency translation loss (gain)		—			2			169			(747	)
Other expenses – net		2,308			6,356			44,516			13,431
(Loss) Income from operations of discontinued    operations before income taxes		(2,308	)		3,231			(26,232	)		13,857
Gain (loss) on sale of Entertainment segment		(228	)		—			104,099			—
Provision (benefit) for income taxes		(406	)		497			28,555			3,074
Net income (loss) from discontinued operations		(2,130	)		2,734			49,312			10,783
Less: Net income attributable to non-    controlling interest from discontinued    operations		—			1,698			2,943			4,778
Income (loss) from discontinued operations, net of    income taxes	$	(2,130	)	$	1,036		$	46,369		$	6,005

The cash proceeds from the sale of the Company’s Entertainment segment were utilized by the Company to make mandatory principal prepayments on both its Senior Secured Notes and Senior Secured Term Loan (as well as a corresponding prepayment premium).  As a result, and in accordance with ASC 205-20-45-6, the Company has allocated interest expense of $6.5 million (which includes $1.0 million of amortization of the original issue discount on the Senior Secured Term Loan) for the Prior Year Quarter from continuing operations to discontinued operations.  For the Current Nine Months and Prior Year Nine Months, the Company has allocated interest expense of $12.9 million (which includes $1.7 million of amortization of the original issue discount on the Senior Secured Term Loan) and $14.5 million (which includes $1.9 million of amortization of the original issue discount on the Senior Secured Term Loan), respectively, from continuing operations to discontinued operations.  Given the completion of the sale on June 30, 2017, there were no corresponding allocations of interest expense for the Current Quarter.  For the Current Quarter, given the mandatory principal prepayment of $152.2 million on the Senior Secured Notes paid in July 2017, the Company has allocated the associated prepayment penalty of $0.3 million as well as the write-off of the pro-rata portion of deferred financing costs of $2.0 million related to the Senior Secured Notes from continuing operations to discontinued operations on the Company’s condensed consolidated statement of operations.  Additionally, for the Current Nine Months, the Company has allocated the prepayment premium of $15.2 million related to the Senior Secured Term Loan as well as the write-off of the pro-rata portion of deferred financing costs and original issue discount of $9.4 million and $4.7 million, respectively, from continuing operations to discontinued operations on the Company’s condensed consolidated statement of operations.  Refer to Note 7 for further details.

During the Current Quarter, the Company recorded an additional $0.2 million of transaction costs associated with the sale of the Entertainment segment which has been allocated to discontinued operations and recorded within Gain on sale of Entertainment segment on the Company’s condensed consolidated statement of operations resulting in a reduction of the pre-tax gain to $104.1 million.

The following table presents the aggregate carrying amounts of the classes of held for sale assets and liabilities as of September 30, 2017 and December 31, 2016:

	September 30, 2017		December 31, 2016
	(unaudited)
Carrying amounts of assets included as part of    discontinued operations
Cash and cash equivalents	$	—	$	12,297
Accounts receivable, net		—		20,811
Other assets – current		—		598
Property and equipment		—		2,664
Other assets		—		8,505
Trademarks and other intangibles, net		—		204,348
Investments and joint ventures		—		90
Goodwill		—		53,029
Total assets classified as held for sale in the condensed    consolidated balance sheet	$	—	$	302,342
Carrying amounts of liabilities included as part of    discontinued operations
Accounts payable and accrued expenses	$	—	$	11,760
Deferred revenue		—		11,767
Other liabilities		—		5,056
Total Liabilities classified as held for sale in the condensed    consolidated balance sheet	$	—	$	28,583

The following table presents cash flow of the Entertainment segment during the Current Nine Months and Prior Year Nine Months:

	Nine Months Ended September 30,
	2017			2016
Net cash (used in) provided by discontinued operating    activities	$	(6,966	)	$	12,980
Net cash used in discontinued investing    activities	$	(84	)	$	(305	)
Net cash used in discontinued financing activities	$	(23,873	)	$	(4,592	)