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 September 30, 2017 (“Prior Year Quarter”) and the nine months ended September 30, 2017 (“Prior Year Nine Months”).

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

	Three Months Ended September 30,					Nine Months Ended September 30,
	2018		2017			2018		2017
	(unaudited)					(unaudited)
Licensing revenue	$	—	$	—		$	—	$	53,129
Selling, general and administrative expenses		—		—			—		34,542
Depreciation and amortization		—		—			—		303
Operating income		—		—			—		18,284
Other expenses (income):
Interest expense		—		—			—		12,973
Interest income		—		—			—		(180	)
Loss on extinguishment of debt		—		2,308			—		31,554
Foreign currency translation loss		—		—			—		169
Other expenses – net		—		2,308			—		44,516
Loss from operations of discontinued operations before income taxes		—		(2,308	)		—		(26,232	)
Gain on sale of Entertainment segment		—		(228	)		—		104,099
Provision for income taxes		—		(406	)		—		28,555
Net income from discontinued operations		—		(2,130	)		—		49,312
Less: Net income attributable to non- controlling interest from discontinued operations		—		—			—		2,943
Income from discontinued operations, net of income taxes	$	—	$	(2,130	)	$	—	$	46,369

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 Securitization Notes and 2016 Senior Secured Term Loan (each as defined below) (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 Nine Months, the Company allocated interest expense of $6.5 million (which includes $1.0 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. Given the completion of the sale on June 30, 2017, there were no corresponding allocations of interest expense for the Prior Year Quarter. For the Prior Year Quarter, given the mandatory principal prepayment of $152.2 million on the 2016 Senior Secured Notes paid in July 2017, the Company allocated the associated prepayment penalty of $0.3 million as well as the write-off of the pro-rata portion of deferred financing costs of $2.0 million related to the Securitization Notes from continuing operations to discontinued operations on the Company’s condensed consolidated statement of operations. Additionally, for the Prior Year Nine 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.

During the Prior Year Quarter, the Company recorded an additional $0.2 million of transaction costs associated with the sale of the Entertainment segment which was allocated to discontinued operations and recorded within Gain on sale of Entertainment segment on the Company’s condensed consolidated statement of operations which resulted in a reduction of the pre-tax gain to $104.1 million.

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

	Nine Months Ended September 30,
	2018		2017
Net cash used in discontinued operating activities	$	—	$	(6,966	)
Net cash used in discontinued investing activities	$	—	$	(84	)
Net cash used in discontinued financing activities	$	—	$	(23,873	)