XML 35 R10.htm IDEA: XBRL DOCUMENT
v3.22.2.2

Discontinued Operations | 9 Months Ended
--- | ---
Sep. 30, 2022
Discontinued Operations and Disposal Groups [Abstract] |
Discontinued Operations | During the second quarter of 2022, we completed the divestiture of the Lottery Business, from which we received $5.7 billion in gross cash proceeds and recorded a pre-tax gain on the sale of the Lottery Business of $4.6 billion. During the third quarter of 2022, we completed the divestiture of the Sports Betting Business and received $796 million in gross proceeds, consisting of $750 million in gross cash proceeds and $46 million in fair value of Class A common stock of Endeavor Group Holdings, Inc. (approximately 2.3 million shares). The cash proceeds are subject to working capital adjustments expected to be finalized during the fourth quarter of 2022 or the first quarter of 2023. The fair value of the Class A common stock received was included in Prepaid expenses, deposits and other current assets in our consolidated balance sheet as of September 30, 2022. We recorded a pre-tax gain on the sale of the Sports Betting Business of $362 million. We have reflected the financial results of the Divested Businesses as discontinued operations in our consolidated statements of operations and reflected the related assets and liabilities as held for sale in our consolidated balance sheet as of December 31, 2021. The summarized results of our discontinued operations were as follows:
| Three Months Ended September 30, |  | Nine Months Ended September 30,
| 2022 |  | 2021 |  | 2022 |  | 2021
Total revenue | $ | 32 |  |  | $ | 285 |  |  | $ | 371 |  |  | $ | 860 |
Total cost of revenue(1) | 9 |  |  | 148 |  |  | 177 |  |  | 431 |
Other operating expenses(2) | 31 |  |  | 63 |  |  | 180 |  |  | 184 |
Operating (loss) income | (8) |  |  | 74 |  |  | 14 |  |  | 245 |
Total other income, net | 2 |  |  | 16 |  |  | 10 |  |  | 90 |
Net (loss) income from discontinued operations before income taxes | (6) |  |  | 90 |  |  | 24 |  |  | 335 |
Gain on sale of discontinued operations before income taxes | 362 |  |  | — |  |  | 4,930 |  |  | — |
Total net income from discontinued operations before income taxes | 356 |  |  | 90 |  |  | 4,954 |  |  | 335 |
Income tax expense | (41) |  |  | (3) |  |  | (1,099) |  |  | (6) |
Net income from discontinued operations, net of tax included in the consolidated statement of operations | $ | 315 |  |  | $ | 87 |  |  | $ | 3,855 |  |  | $ | 329 |
(1) Excludes D&A.
(2) Includes D&A of $26 million and $79 million for the three and nine months ended September 30, 2021, respectively, along with stock-based compensation of $7 million and $18 million for the three and nine months ended September 30, 2022, respectively, and $7 million and $14 million for the three and nine months ended September 30, 2021, respectively. Due to the discontinued operations classification of the Divested Businesses as of the third quarter of 2021, D&A was ceased and none was included for the three and nine months ended September 30, 2022. The three and nine months ended September 30, 2022 also include $7 million and $85 million, respectively, related to direct transaction closing fees.
The following table summarizes the major classes of assets and liabilities of businesses held for sale.
|  |  | As of
|  |  | December 31, 2021
ASSETS |  |  |
Cash and cash equivalents |  |  | $ | 44 |
Restricted cash |  |  | 22 |
Receivables, net |  |  | 214 |
Inventories |  |  | 94 |
Prepaid expenses deposits and other current assets |  |  | 123 |
Total current assets of businesses held for sale |  |  | 497 |
Property and equipment, net |  |  | 217 |
Intangible assets and software, net |  |  | 304 |
Goodwill |  |  | 623 |
Equity investments |  |  | 251 |
Other assets |  |  | 82 |
Total non-current assets of businesses held for sale |  |  | 1,477 |
Total assets of businesses held for sale |  |  | $ | 1,974 |
LIABILITIES |  |  |
Accounts payable |  |  | $ | 95 |
Accrued liabilities and other |  |  | 187 |
Total current liabilities of businesses held for sale |  |  | 282 |
Operating lease liabilities |  |  | 34 |
Other |  |  | 90 |
Total non-current liabilities of businesses held for sale |  |  | 124 |
Total liabilities of businesses held for sale |  |  | $ | 406 |

X
- References No definition available. + Details
Name: | us-gaap_DiscontinuedOperationsAndDisposalGroupsAbstract
Namespace Prefix: | us-gaap_
Data Type: | xbrli:stringItemType
Balance Type: | na
Period Type: | duration

X
- Definition The entire disclosure related to a disposal group. Includes, but is not limited to, a discontinued operation, disposal classified as held-for-sale or disposed of by means other than sale or disposal of an individually significant component. + References Reference 1: http://fasb.org/us-gaap/role/ref/legacyRef -Publisher FASB -Name Accounting Standards Codification -Topic 360 -URI https://asc.fasb.org/topic&trid=2155823 Reference 2: http://fasb.org/us-gaap/role/ref/legacyRef -Publisher FASB -Name Accounting Standards Codification -Topic 205 -SubTopic 20 -URI https://asc.fasb.org/subtopic&trid=2122178 + Details
Name: | us-gaap_DisposalGroupsIncludingDiscontinuedOperationsDisclosureTextBlock
Namespace Prefix: | us-gaap_
Data Type: | dtr-types:textBlockItemType
Balance Type: | na
Period Type: | duration