2. Discontinued Operations

During the FY 2017, the Company’s Board of Directors approved a plan to sell the businesses underlying its Entertainment segment. On May 9, 2017, the Company signed definitive agreements to sell its Entertainment segment for $349.1 million in cash, which includes a customary working capital adjustment. The sale was completed on June 30, 2017. As a result of the sale, the Company has classified the results of its Entertainment segment as discontinued operations in its consolidated statement of operations for all periods presented. Additionally, the assets and liabilities associated with the discontinued operations were classified as held for sale in our consolidated balance sheet as of December 31, 2016. The Company has recorded a pre-tax gain of $104.1 million (net of transaction costs of $7.8 million) on the sale of the Entertainment segment which is recorded within discontinued operations in its consolidated statement of operations for FY 2017.

The financial results of the Entertainment segment for FY 2017 are presented as income from discontinued operations, net of income taxes, in our consolidated statement of operations. The following table presents financial results of the Entertainment segment for FY 2017, FY 2016 and FY 2015:

	Year Ended December 31,
	2017			2016			2015
Licensing revenue	$	53,129		$	113,318		$	107,607
Selling, general and administrative expenses		34,542			77,832			70,940
Depreciation and amortization		303			668			403
Trademark impairment		—			5,128			—
Operating income		18,284			29,690			36,264
Other expenses (income):
Interest expense		12,973			20,617			6,806
Interest income		(180	)		(676	)		(855	)
Loss on extinguishment of debt		31,554			—			—
Foreign currency translation loss (gain)		169			(198	)		588
Other expenses – net		44,516			19,743			6,539
(Loss) Income from operations of discontinued operations before income taxes		(26,232	)		9,947			29,725
Gain (loss) on sale of Entertainment segment		104,099			—			—
Provision for income taxes		28,899			1,631			8,557
Net income from discontinued operations		48,968			8,316			21,168
Less: Net income attributable to non-controlling interest from discontinued operations		2,943			5,952			6,023
Income from discontinued operations, net of income taxes	$	46,025		$	2,364		$	15,145

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, for FY 2017, FY 2016 and FY 2015, the Company has allocated additional interest expense of $12.9 million (which includes $1.7 million of amortization of the original issue discount on the Senior Secured Term Loan), $20.4 million (which includes $2.2 million of amortization of the original issue discount on the Senior Secured Term Loan) and $6.5 million, respectively, from continuing operations to discontinued operations. In FY 2017, the Company has allocated the prepayment premium of $15.2 million related to the Senior Secured Term Loan, the prepayment penalty of $0.3 million related to the Senior Secured Notes as well as the write-off of the pro-rata portion of deferred financing costs and original issue discount of $9.4 million and $6.7 million (comprised of $4.7 million associated with the Senior Secured Term Loan and $2.0 million associated with the Senior Secured Notes), respectively, from continuing operations to discontinued operations on the Company’s consolidated statement of operations. Refer to Note 7 for further details.

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

	December 31, 2017		December 31, 2016
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 FY 2017, FY 2016 and FY 2015:

	Year Ended December 31,
	2017			2016			2015
Net cash (used in) provided by discontinued operating activities	$	(10,780	)	$	(12,664	)	$	1,559
Net cash used in discontinued investing activities	$	(84	)	$	(2,277	)	$	(970	)
Net cash used in discontinued financing activities	$	(23,873	)	$	(4,592	)	$	(4,582	)