Year Ended December 31,
Year Ended December 31,
2018
2017
(In thousands)
(In thousands)
Net revenue
$464,649
$367,751
Cost of net revenue
372,843
279,425
Gross profit
91,806
88,326
Operating expenses:
Research and development
48,696
22,710
Sales and marketing
39,713
19,490
General and administrative
17,762
691
Separation expense
31,583
1,384
Litigation reserves, net
—
28
Total operating expenses
137,754
44,303
Income (loss) from operations of discontinued operations
(45,948)
44,023
Interest income, net
1,239
—
Other income (expense), net
(41)
467
Income (loss) from discontinued operations before income taxes
(44,750)
44,490
Provision (benefit) for income taxes
(9,095)
13,921
Income (loss) from discontinued operations, net of tax
$(35,655)
$30,569
on february 6 2018 the company announced that its board of directors had unanimously approved the pursuit of a separation of its smart camera business “ arlo ” from netgear -the “ separation ” to be effected by way of initial public offering - “ ipo ” and spin-off .
on august 2 2018 arlo technologies inc .
- “ arlo ” and netgear announced the pricing of arlo ' s initial public offering - “ ipo ” at a price to the public of $ 16 .
00 per share subsequently listing on the new york stock exchange on august 3 2018 under the symbol " arlo " .
on august 7 arlo completed the ipo and generated proceeds of approximately $ 170 .
2 million net of offering costs which arlo used for its general corporate purposes .
upon completion of the ipo arlo common stock outstanding amounted to 74247000 shares of which netgear held 62500000 shares representing approximately 84 .
2 % of the outstanding shares of arlo common stock .
on december 31 2018 netgear completed the distribution of these 62500000 shares of common stock of arlo -the “ distribution ” .
after the completion of the distribution netgear no longer owns any shares of arlo common stock .
the distribution took place by way of a pro rata common stock dividend to each netgear stockholder of record on the record date of the distribution december 17 2018 and netgear stockholders received 1 .
980295 shares of arlo common stock for every share of netgear common stock held as of the record date .
upon completion of the distribution the company ceased to own a controlling financial interest in arlo and arlo ' s assets liabilities operating results and cash flows for all periods presented have been classified as discontinued operations within the consolidated financial statements .
in connection with arlo ' s separation the company incurred separation expense of $ 34 .
2 million since commencing in december 2017 .
separation expense primarily consists of third-party advisory consulting legal and professional services it costs and employee bonuses directly related to the separation as well as other items that are incremental and one-time in nature that are related to the separation .
the majority of these costs are reflected in the company ' s consolidated statement of operations as discontinued operations for all periods presented .
in addition in the third fiscal quarter of 2018 the company contributed $ 70 .
0 million in cash to arlo and provided for among other things the transfer from netgear to arlo of assets and the assumption by arlo of liabilities comprising its business effected through a master separation agreement between netgear and arlo .
the master separation agreement governs the separation of arlo ' s business from netgear as well as various interim arrangements .
in connection with these arrangements during the third and fourth quarter of 2018 netgear recorded a reduction to operating expenses of $ 6 .
3 million relating to the transition services which are reflected in the company ' s consolidated statement of operations as discontinued operations for the periods presented .
in the third quarter of 2018 netgear provided billing and collection services to arlo in respect of its trade receivables and trade payments .
as of december 31 2018 netgear had a net liability to arlo of $ 12 .
2 million relating to these transition service billing and collection services and the net liability was classified within accounts payable on the consolidated balance sheets .
the company does not expect the amounts relating to such services to be material after the distribution .
additionally the company entered into certain other agreements that provide a framework for the relationship between netgear and arlo after the separation including a transition services agreement a tax matters agreement an employee matters agreement an intellectual property rights cross-license agreement and a registration rights agreement .
in connection with arlo ' s separation the company incurred separation expense of $ 34 .
2 million since commencing in december 2017 .
separation expense primarily consists of third-party advisory consulting legal and professional services it costs and employee bonuses directly related to the separation as well as other items that are incremental and one-time in nature that are related to the separation .
the majority of these costs are reflected in the company ' s consolidated statement of operations as discontinued operations for all periods presented .
in addition in the third fiscal quarter of 2018 the company contributed $ 70 .
0 million in cash to arlo and provided for among other things the transfer from netgear to arlo of assets and the assumption by arlo of liabilities comprising its business effected through a master separation agreement between netgear and arlo .
the master separation agreement governs the separation of arlo ' s business from netgear as well as various interim arrangements .
in connection with these arrangements during the third and fourth quarter of 2018 netgear recorded a reduction to operating expenses of $ 6 .
3 million relating to the transition services which are reflected in the company ' s consolidated statement of operations as discontinued operations for the periods presented .
in the third quarter of 2018 netgear provided billing and collection services to arlo in respect of its trade receivables and trade payments .
as of december 31 2018 netgear had a net liability to arlo of $ 12 .
2 million relating to these transition service billing and collection services and the net liability was classified within accounts payable on the consolidated balance sheets .
the company does not expect the amounts relating to such services to be material after the distribution .
additionally the company entered into certain other agreements that provide a framework for the relationship between netgear and arlo after the separation including a transition services agreement a tax matters agreement an employee matters agreement an intellectual property rights cross-license agreement and a registration rights agreement .
the financial results of arlo through the distribution date are presented as income -loss from discontinued operations net of tax in the consolidated statements of operations .
the following table presents financial results of arlo : .

Question: What was the net liability to Arlo in 2018?
Answer: $12.2 million