2. Discontinued Operations

During the Current Six Months, our Board of Directors approved a plan to sell the businesses underlying our Entertainment segment. On May 9, 2017, we signed definitive agreements to sell the Company’s Entertainment segment for $345 million in cash, subject to a customary working capital adjustment. The sale was completed on June 30, 2017. We have classified the results of our Entertainment segment as discontinued operations in our condensed consolidated income statement for all periods presented. Additionally, the assets and liabilities associated with the discontinued operations are classified as held for sale in our condensed consolidated balance sheet as of December 31, 2016. We have recorded a pre-tax gain of $104.3 million (net of estimated transaction costs of $7.6 million) on the sale of the Entertainment segment which is recorded within discontinued operations in our condensed consolidated income statement for the Current Quarter.

The financial results of our Entertainment segment through June 30, 2017 are presented as income from discontinued operations, net of income taxes, in our condensed consolidated income statements. The following table presents financial results of the Entertainment segment for the Current Quarter, Current Six Months, the three months ended June 30, 2016 (“Prior Year Quarter”) and the six months ended June 30, 2016 (“Prior Year Six Months”):

	Three Months Ended June 30,						Six Months Ended June 30,
	2017			2016			2017			2016
	(unaudited)						(unaudited)
Licensing revenue	$	25,669		$	27,534		$	53,129		$	54,490
Selling, general and administrative expenses		16,691			17,632			34,542			36,520
Depreciation and amortization		117			137			303			269
Operating income		8,861			9,765			18,284			17,701
Other expenses (income):
Interest expense		6,548			6,492			12,973			8,183
Interest income		(81	)		(176	)		(180	)		(359	)
Loss on extinguishment of debt		13,509			—			29,246			—
Foreign currency translation loss (gain)		25			62			169			(748	)
Other expenses (income) – net		20,001			6,378			42,208			7,076
Income from operations of discontinued operations before income taxes		(11,140	)		3,387			(23,924	)		10,625
Gain on sale of Entertainment segment		104,327			—			104,327			—
Provision for income taxes		34,060			805			28,962			2,577
Net income from discontinued operations		59,127			2,582			51,441			8,048
Less: Net income attributable to non- controlling interest from discontinued operations		1,634			1,602			2,943			3,081
Income from discontinued operations, net of income taxes	$	57,493		$	980		$	48,498		$	4,967

The cash proceeds from the sale of our 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 the Current Quarter and Prior Year Quarter, the Company has allocated interest expense of $6.5 million (which includes $0.9 million of amortization of the original issue discount on the Senior Secured Term Loan) and $6.1 million (which includes $0.6 million of amortization of the original issue discount on the Senior Secured Term Loan), respectively, from continuing operations to discontinued operations. For the Current Six Months and Prior Year Six Months, the Company has allocated interest expense of $12.9 million (which includes $1.7 million of amortization of the original issue discount on the Senior Secured Term Loan) and $8.1 million (which includes $0.9 million of amortization of the original issue discount on the Senior Secured Term Loan), respectively, from continuing operations to discontinued operations. Additionally, for the Current Six Months, the Company has allocated the prepayment premium of $15.2 million related to the Senior Secured Term Loan as well as the write-off of the pro-rata portion of deferred financing costs and original issue discount of $9.4 million and $4.7 million, respectively, from continuing operations to discontinued operations on the Company’s condensed consolidated income statement. 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 June 30, 2017 and December 31, 2016:

	June 30, 2017		December 31, 2016
	(unaudited)
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 the Current Six Months and Prior Year Six Months:

	Six Months Ended June 30,
	2017			2016
Net cash (used in) provided by discontinued operating activities	$	(734	)	$	14,275
Net cash used in discontinued investing activities	$	(84	)	$	(178	)
Net cash used in discontinued financing activities	$	(23,596	)	$	(4,592	)