3. Discontinued operations

On August 1, 2016, the Company completed the spin-off of Aptevo through the distribution of 100% of the outstanding shares of common stock of Aptevo to the Company's shareholders (the "Distribution"). The Distribution was made to the Company's shareholders of record as of the close of business on July 22, 2016 (the "Record Date"), who received one share of Aptevo common stock for every two shares of Emergent common stock held as of the Record Date. The Distribution was intended to qualify as a tax-free distribution for federal income tax purposes in the United States. In the aggregate, approximately 20.2 million shares of Aptevo common stock were distributed to the Company's shareholders of record as of the Record Date in the Distribution. After the Distribution, the Company no longer holds shares of Aptevo's common stock. In addition, on August 1, 2016, the Company entered into a non-negotiable, unsecured promissory note with Aptevo to provide an additional $20 million in funding, which the Company paid in January 2017.

The historical statements of operations of Aptevo have been presented as discontinued operations in the consolidated financial statements and the prior period has been restated. Discontinued operations include results of Aptevo's business except for certain allocated corporate overhead costs and certain costs associated with transition services provided by the Company to Aptevo. These allocated costs remain part of continuing operations. Due to differences between the basis of presentation for discontinued operations and the basis of presentation as a stand-alone company, the financial results of Aptevo included within discontinued operations for the Company may not be indicative of actual financial results of Aptevo.

The following table summarizes results from discontinued operations of Aptevo included in the consolidated statements of operations for the year ended December 31, 2016 and 2015:

	Years ended December 31,
(in thousands)	2016			2015

Revenues:
Product sales	$	21,183		$	27,947
Collaborations		187			5,511
Total revenues		21,370			33,458

Operating expense:
Cost of product sales		11,556			16,809
Research and development		18,024			34,811
Selling, general and administrative		23,792			27,313
Loss from operations		(32,002	)		(45,475	)

Other income (expense), net:		(41	)		(472	)

Loss from discontinued operations before benefit from income taxes		(32,043	)		(45,947	)
Benefit from income taxes		(21,295	)		(17,401	)
Net loss from discontinued operations	$	(10,748	)	$	(28,546	)

The following table summarizes the cash flows of Aptevo included in the years ended December 31, 2016 and 2015 consolidated statements of cash flows:

	Years ended December 31,
(in thousands)	2016			2015
Net cash used in operating activities	$	(10,299	)	$	(12,716	)
Net cash used in investing activities		(1,926	)		(1,518	)
Net cash provided by financing activities		7,733			15,012

Net increase (decrease) in cash and cash equivalents	$	(4,492	)	$	778