Discontinued Operations (Tables) - Gracenote Companies

6 Months Ended

Jun. 30, 2018

Income Statement, Balance Sheet and Additional Disclosures by Disposal Groups, Including Discontinued Operations [Line Items]

Disposal Groups, Including Discontinued Operations

The following table shows the components of the results from discontinued operations associated with the Gracenote Sale as reflected in the unaudited Condensed Consolidated Statements of Operations (in thousands):

	Three Months Ended			Six Months Ended
	June 30, 2017 (1)(2)			June 30, 2017 (1)(2)
Operating revenues	$	—		$	18,168
Direct operating expenses	—			7,292
Selling, general and administrative	—			15,349
Operating loss	—			(4,473		)
Interest income	—			16
Interest expense (3)	—			(1,261		)
Loss before income taxes	—			(5,718		)
Pretax (loss) gain on the disposal of discontinued operations	(952		)	34,510
Total pretax (loss) income on discontinued operations	(952		)	28,792
Income tax (benefit) expense (4)	(373		)	13,753
(Loss) income from discontinued operations, net of taxes	$	(579	)	$	15,039

(1) Results of operations for the Gracenote Companies are reflected through January 31, 2017, the date of the Gracenote Sale.

(2) No depreciation expense or amortization expense was recorded by the Company in 2017 as the Gracenote Companies’ assets were held for sale as of December 31, 2016.

(3) The Company used $400 million of proceeds from the Gracenote Sale to prepay a portion of its outstanding borrowings under the Company’s Term Loan Facility (as defined and described in Note 6). Interest expense associated with the Company’s outstanding Term Loan Facility was allocated to discontinued operations based on the ratio of the $400 million prepayment to the total outstanding indebtedness under the Term Loan Facility in effect in each respective period.

(4) The effective tax rates on pretax (loss) income from discontinued operations were 39.2% for the three months ended June 30, 2017 and 47.8% for the six months ended June 30, 2017. The 2017 rate differs from the U.S. federal statutory rate of 35% primarily due to state income taxes (net of federal benefit), foreign tax rate differences, and an adjustment relating to the sale of the Gracenote Companies.

Cash Flows of Disposal Group

The following table represents the components of the results from discontinued operations associated with the Gracenote Sale as reflected in the Company’s unaudited Condensed Consolidated Statements of Cash Flows (in thousands):

	Six Months Ended
	June 30, 2017 (1)
Significant operating non-cash items:
Stock-based compensation	$	1,992
Significant investing items (2):
Capital expenditures	1,578
Net proceeds from the sale of business (3)	554,487

(1) Results of operations for the Gracenote Companies are reflected through January 31, 2017, the date of the Gracenote Sale.

(2) Non-cash investing and financing activities of Digital and Data businesses included in the Gracenote Sale were immaterial.

(3) Net proceeds from the sale of business reflects the gross proceeds from the Gracenote sale of $584 million, net of $20 million of the Gracenote Companies’ cash, cash equivalents and restricted cash included in the sale and $9 million of selling costs.