2. Discontinued Operations

On May 9, 2017, the Company signed definitive agreements to sell its Entertainment segment for $349.1 million in cash, which included a customary working capital adjustment. The sale was completed on June 30, 2017. As a result of the sale, the Company has classified the results of its Entertainment segment as discontinued operations in its condensed consolidated statement of operations for the three months ended June 30, 2017 (“Prior Year Quarter”) and the six months ended June 30, 2017 (“Prior Year Six Months”).

The following table presents the details of the Entertainment segment for the Prior Year Quarter and Prior Year Six Months which were shown as income from discontinued operations, net of income taxes, in our unaudited condensed consolidated statement of operations:

	Three Months Ended June 30,					Six Months Ended June 30,
	2018		2017			2018		2017
	(unaudited)					(unaudited)
Licensing revenue	$	—	$	25,669		$	—	$	53,129
Selling, general and administrative expenses		—		16,691			—		34,542
Depreciation and amortization		—		117			—		303
Operating income		—		8,861			—		18,284
Other expenses (income):
Interest expense		—		6,548			—		12,973
Interest income		—		(81	)		—		(180	)
Loss on extinguishment of debt		—		13,509			—		29,246
Foreign currency translation loss		—		25			—		169
Other expenses – net		—		20,001			—		42,208
Loss from operations of discontinued operations before income taxes		—		(11,140	)		—		(23,924	)
Gain on sale of Entertainment segment		—		104,327			—		104,327
Provision for income taxes		—		34,060			—		28,962
Net income from discontinued operations		—		59,127			—		51,441
Less: Net income attributable to non- controlling interest from discontinued operations		—		1,634			—		2,943
Income from discontinued operations, net of income taxes	$	—	$	57,493		$	—	$	48,498

The cash proceeds from the sale of the Company’s Entertainment segment were utilized by the Company to make mandatory principal prepayments on both its Senior Secured Notes and 2016 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 Prior Year Quarter and Prior Year Six Months, the Company allocated interest expense of $6.5 million (which includes $0.9 million of amortization of the original issue discount on the 2016 Senior Secured Term Loan) and $12.9 million (which includes $1.7 million of amortization of the original issue discount on the 2016 Senior Secured Term Loan, respectively, from continuing operations to discontinued operations. Additionally, for the Prior Year Six Months, the Company allocated the prepayment premium of $15.2 million related to the 2016 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 and $4.7 million, respectively, from continuing operations to discontinued operations on the Company’s unaudited condensed consolidated statement of operations. Refer to Note 9 for further details.

The following table presents cash flow of the Entertainment segment during the Prior Year Six Months:

	Six Months Ended June 30,
	2018		2017
Net cash used in discontinued operating activities	$	—	$	(734	)
Net cash used in discontinued investing activities	$	—	$	(84	)
Net cash used in discontinued financing activities	$	—	$	(23,596	)