Held for Sale

6 Months Ended

Jun. 30, 2022

Held for Sale

Held for Sale

Note 4. Held for Sale

On May 9, 2022, the Company entered into an agreement to sell Pantaya to TelevisaUnivision in exchange for $115 million in cash plus TelevisaUnivision’s Puerto Rican radio business, subject to certain adjustments. The sale of Pantaya is expected to close in the third quarter of 2022. The Company determined that Pantaya met the held for sale criteria as of May 9, 2022 and, as a result, related assets and liabilities were classified as held for sale in the Condensed Consolidated Balance Sheets as of June 30, 2022. As part of classifying Pantaya as held for sale in accordance with U.S. GAAP, the Company is required to measure Pantaya at the lower of its carrying amount or fair value less cost to sell. As of June 30, 2022, the Company determined there was no impairment and will reassess at the close of the transaction. The prior description is subject to, and is qualified in its entirety by reference to, the terms of the Transaction Agreements.

The following table summarizes the Company’s assets and liabilities held for sale by major class (amounts in thousands):

	June 30, 2022
Accounts receivable, net	$	6,245
Due from related parties		1,915
Programming rights		6,034
Prepaid expenses		1,957
Other current assets		25,361
Current assets held for sale	$	41,512
Programming rights		14,938
Goodwill		66,113
Other intangibles, net		89,530
Operating lease right-of-use assets		773
Other assets		3,901
Non-current assets held for sale	$	175,255
Accounts payable	$	8,779
Due to related parties		1,300
Other accrued expenses		5,191
Deferred revenue		6,502
Programming rights payable		7,158
Current liabilities held for sale	$	28,930
Programming rights payable		2,210
Deferred income taxes		2,669
Other long-term liabilities		1,138
Non-current liabilities held for sale	$	6,017

Pantaya had a pre-tax loss of $7.0 million and $4.9 million for the three months ended June 30, 2022 and 2021, respectively, and $21.1 million and $4.9 million for the six months ended June 30, 2022 and 2021, respectively.