Assets and Liabilities Held for Sale and Discontinued Operations

9 Months Ended

Sep. 30, 2023

Discontinued Operations and Disposal Groups [Abstract]

Assets and Liabilities Held for Sale and Discontinued Operations

As of September 30, 2023, Yandy (which was sold in the second quarter of 2023) and TLA disposal groups met the criteria discussed in Note 1, Basis of Presentation and Summary of Significant Accounting Policies, to be classified as discontinued operations for all periods presented, as the divestiture of Yandy and TLA in the aggregate represents a strategic shift that has or will have a major effect on our operations and financial results. Their assets and liabilities are classified as current assets and liabilities held for sale in the condensed consolidated balance sheets for all periods presented. The sale of TLA was closed on November 3, 2023. Refer to Note 18, Subsequent events, for details.

The following table summarizes the components of income (loss) from discontinued operations, net of tax in the accompanying condensed consolidated statements of operations (in thousands):


	Three Months Ended September 30,				Nine Months Ended September 30,
	2023		2022		2023		2022
Net revenues	$	9,880	$	17,918	$	36,121	$	57,769
Costs and expenses:
Cost of sales	(4,252)		(11,512)		(16,431)		(30,939)
Selling and administrative expenses	(4,313)		(10,078)		(19,329)		(30,060)
Impairments	—		(24,665)		—		(24,665)
Total operating expense	(8,565)		(46,255)		(35,760)		(85,664)
Operating income (loss)	1,315		(28,337)		361		(27,895)
Nonoperating income (expense):
Other income (expense), net	9		52		(190)		134
Total nonoperating income (expense)	9		52		(190)		134
Income (loss) from discontinued operations before income taxes	1,324		(28,285)		171		(27,761)
(Expense) benefit from income taxes	(5)		471		(22)		1,121
Income (loss) from discontinued operations, net of tax	$	1,319	$	(27,814)	$	149	$	(26,640)

The major classes of assets and liabilities classified as held for sale in the accompanying condensed consolidated balance sheets were as follows (in thousands):


	September 30, 2023		December 31, 2022
Assets
Receivables, net of allowance for credit losses	$	183	$	4,206
Inventories, net	4,684		12,477
Prepaid expenses and other current assets	306		539
Property and equipment, net	1,531		3,571
Operating right-of-use assets	12,131		13,183
Other intangible assets, net	433		471
Other noncurrent assets	265		463
Total assets held for sale	$	19,533	$	34,910
Liabilities
Accounts payable	$	1,760	$	6,541
Deferred revenues	—		282
Operating lease liabilities	11,494		13,682
Other current liabilities and accrued expenses	2,237		6,621
Total liabilities held for sale	$	15,491	$	27,126