Discontinued Operations (Tables)

12 Months Ended

Dec. 31, 2021

Discontinued Operations And Disposal Groups [Abstract]

Summary of Financial Results Included in Income (Loss) from Discontinued Operations

The following table presents financial results of the Nutrition business included in “loss from discontinued operations" for the years ended December 31, 2021, 2020 and 2019.

	Year Ended December 31
(In thousands)	2021			2020 ⁽¹⁾			2019 ⁽²⁾
Revenues	$	—		$	617,191		$	498,091
Cost of revenues		—			291,097			232,240
Marketing expenses		—			196,952			140,286
Selling, general and administrative expenses ⁽³⁾		3,210			59,093			56,840
Depreciation and amortization		—			35,957			43,638
Impairment loss		—			199,500			377,100
Restructuring and related charges		—			472			5,143
Interest expense ⁽⁴⁾		—			36,798			34,763
Pretax loss from discontinued operations		(3,210	)		(202,678	)		(391,919	)
Loss on de-designation of cash flow hedges ⁽⁵⁾		—			(14,336	)		—
Write-off of deferred loan costs and debt discount ⁽⁴⁾		—			(8,946	)		—
Loss on sale of Nutrition business ⁽⁶⁾		(96	)		(101,391	)		—
Total pretax loss from discontinued operations	$	(3,306	)	$	(327,351	)	$	(391,919	)
Income tax benefit		(844	)		(46,851	)		(59,881	)
Loss from discontinued operations, net of income tax benefit	$	(2,462	)	$	(280,500	)	$	(332,038	)

(1)

Results include the period from January 1, 2020 through December 8, 2020.

(2)

Results include the period from March 8, 2019 (the date of acquisition) through December 31, 2019.

(3)

For the year ended December 31, 2021, expenses from discontinued operations primarily relate to legal and other professional fees.

(4)

The term loans under our Prior Credit Agreement (as defined in Note 10) were originated with the purchase of Nutrisystem on March 8, 2019. Following the disposition of Nutrisystem, we repaid $519.0 million of principal on the Term Loans under the terms of the Prior Credit Agreement. In conjunction with the partial debt prepayment, we wrote off a portion of the related deferred loan costs and original issue discount. We allocated interest expense to discontinued operations based on the interest expense incurred from March 8, 2019 through December 8, 2020 related to $519.0 million of term loan debt, using our historical interest rates.

(5)

Represents loss recognized in the fourth quarter of 2020 in connection with the de-designation of cash flow hedging on interest rate swaps (see Note 14).

(6)

For the year ended December 31, 2020, the loss on sale of business consists of impairment losses of $90.2 million related to Nutrisystem goodwill (see Note 13), which includes post-closing adjustments related to final

settlement, and $11.2 million of transaction costs directly related to the disposition of Nutrisystem. During the year ended December 31, 2021, an additional loss of $0.1 million was recognized upon final settlement of the post-closing working capital adjustment.

Summary of Depreciation, Amortization and Significant Operating and Investing Non-cash Items of the Discontinued Operations

The depreciation, amortization and significant operating and investing non-cash items of the discontinued operations were as follows:

	Year Ended December 31
(In thousands)	2021			2020			2019
Impairment of goodwill and intangible assets	$	—		$	199,500		$	377,100
Loss on sale of business		—			90,163			—
Depreciation and amortization		—			35,957			43,638
Loss on de-designation of cash flow hedges		—			14,336			—
Write-off of deferred loan costs and debt discount ⁽¹⁾		—			8,946			—
Capital expenditures on discontinued operations		—			6,794			10,168
Share-based compensation on discontinued operations		—			4,351			13,230
Deferred income taxes		(844	)		(54,561	)		(68,488	)

(1)

Reflected on the consolidated statement of cash flows in the line items “Amortization and write-off of deferred loan costs” and “Amortization and write-off of debt discount”.