DISCONTINUED OPERATIONS

On February 25, 2019, in accordance with the provisions of the U.K. Insolvency Act 1986 and as approved by the Boards of Directors of the U.K. Subsidiaries, insolvency practitioners from KPMG were appointed as Administrators for the U.K. Subsidiaries. The effect of the U.K. Subsidiaries’ entry into administration was to place their management, affairs, business and property of the U.K. Subsidiaries under the direct control of the Administrators. Accordingly, the Company deconsolidated the U.K. Subsidiaries, which comprised the U.K. reportable operating segment, as of February 25, 2019. The Company reported the historical results of operations and financial position of the U.K. reportable operating segment as discontinued operations in the Consolidated Financial Statements for all periods presented.

The following table presents the results from the discontinued operations of the U.K. Subsidiaries included in the Consolidated Statement of Operations (in thousands):



	For the Year Ended December 31,
	2019			2018			2017
Revenue	$	6,957		$	49,238		$	39,496
Provision for losses	1,703			21,632			13,660
Net revenue	5,254			27,606			25,836

Cost of providing services
Advertising	775			8,970			5,495
Non-advertising costs of providing services	307			3,209			6,269
Total cost of providing services	1,082			12,179			11,764
Gross margin	4,172			15,427			14,072
Operating expense (income)
Corporate, district and other	3,810			31,639			17,218
Interest income	(4		)	(26		)	(12		)
Restructuring costs	—			—			7,393
Goodwill impairment	—			22,496			—
Loss on disposition	39,414			—			—
Total operating expense	43,220			54,109			24,599
Loss from operations of discontinued operations before income taxes	(39,048		)	(38,682		)	(10,527		)
(Benefit) / provision for income tax	(46,638		)	(170		)	929
Income (loss) from discontinued operations	$	7,590		$	(38,512	)	$	(11,456	)

The effective tax rate for the year ending December 31, 2019 was 119.4%, and primarily relates to the worthlessness of the U.K. stock resulting in a U.S. tax benefit.

The following table presents the aggregate carrying amounts of the assets and liabilities of the discontinued operations of the U.K. Subsidiaries (in thousands):



	December 31, 2019		December 31, 2018
ASSETS
Cash	$	—	$	9,859
Restricted cash	—		3,384
Gross loans receivable	—		25,256
Less: allowance for loan losses	—		(5,387		)
Loans receivable, net	—		19,869
Prepaid expenses and other	—		1,482
Other	—		267
Total assets classified as discontinued operations in the Consolidated Balance Sheets	$	—	$	34,861
LIABILITIES AND STOCKHOLDERS' EQUITY
Accounts payable and accrued liabilities	$	—	$	8,136
Deferred revenue	—		180
Accrued interest	—		(5		)
Deferred rent	—		149
Other long-term liabilities	—		422
Total liabilities classified as discontinued operations in the Consolidated Balance Sheets	$	—	$	8,882

The following table presents cash flows of the discontinued operations of the U.K. Subsidiaries (in thousands):



	Year Ended December 31,
	2019			2018			2017
Net cash (used in) provided by discontinued operating activities	$	(504	)	$	10,808		$	9,666
Net cash used in discontinued investing activities	(14,213		)	(27,891		)	(15,761		)
Net cash used in discontinued financing activities	—			—			—