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Discontinued Operations | 12 Months Ended
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Dec. 31, 2022
Discontinued Operations and Disposal Groups [Abstract] |
Discontinued Operations | During the second quarter of 2022, we completed the sale of the Lottery Business, from which we received $5.7 billion in gross cash proceeds and recorded a pre-tax gain of $4.6 billion. During the third quarter of 2022, we completed the sale of the Sports Betting Business, from which we received $793 million in gross proceeds, consisting of $747 million in gross cash proceeds (adjusted for final closing statement adjustments of $3 million in the fourth quarter of 2022) and $46 million in fair value of Class A common stock of Endeavor (approximately 2.3 million shares), and recorded a pre-tax gain of $359 million. The Endeavor stock was sold in the fourth quarter of 2022 for $48 million. We have reflected the financial results of the Divested Businesses as discontinued operations in our consolidated statements of operations for all periods presented and the assets and liabilities of these businesses as held for sale in our consolidated balance sheets as of December 31, 2021. The summarized results of our discontinued operations were as follows:
| Years Ended December 31,
| 2022 |  | 2021 |  | 2020
Total revenue | $ | 371 |  |  | $ | 1,157 |  |  | $ | 1,025 |
Total cost of revenue(1) | 177 |  |  | 587 |  |  | 550 |
Other operating expenses(2) | 182 |  |  | 233 |  |  | 208 |
Operating income | 12 |  |  | 337 |  |  | 267 |
Total other income (expense), net | 9 |  |  | 101 |  |  | (7) |
Net income from discontinued operations before income taxes | 21 |  |  | 438 |  |  | 260 |
Gain on sale of discontinued operations before income taxes | 4,927 |  |  | — |  |  | — |
Total net income from discontinued operations before income taxes | 4,948 |  |  | 438 |  |  | 260 |
Income tax expense | (1,075) |  |  | (72) |  |  | (7) |
Net income from discontinued operations, net of tax included in the consolidated statement of operations | $ | 3,873 |  |  | $ | 366 |  |  | $ | 253 |
(1) Excludes D&A.
(2) Includes D&A of $79 million and $105 million for the years ended December 31, 2021 and 2020, respectively, stock-based compensation of $18 million, $24 million and $5 million for the years ended December 31, 2022, 2021 and 2020, respectively, and direct transaction closing fees of $87 million for the year ended December 31, 2022. Due to the discontinued operations classification of the Divested Businesses as of the third quarter of 2021, D&A ceased and is not included for the year ended December 31, 2022.
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 |

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- 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
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