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DISPOSITION (Notes) | 6 Months Ended
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Sep. 30, 2018
Discontinued Operations and Disposal Groups [Abstract] |
DISPOSITION | DISPOSITION: On July 2, 2018, the Company entered into a definitive agreement to sell its Acxiom Marketing Solutions business (“AMS”) to The Interpublic Group of Companies, Inc. (“IPG”) for $2.3 billion in cash. As required regulatory approvals were being sought and received, the Company solicited and received shareholder approval for the transaction. Shareholder approval was received on September 20, 2018, and the Company began reporting the financial information pertaining to AMS as a component of discontinued operations in the condensed consolidated financial statements. Prior to the discontinued operations classification, the AMS business was included in the AMS segment in the Company’s segment results. The sale was completed on October 1, 2018. At the closing of the transaction, the Company received total consideration of $2.3 billion ($2.3 billion stated sales price less closing adjustments and transaction costs of $38.5 million). Additionally, the Company applied $230.5 million of proceeds from the sale to repay outstanding Company debt and interest. The Company plans to use further proceeds from the sale to fund expansion of its common stock repurchase program and for general corporate purposes. The Company expects to report a gain on the sale. Summary results of operations of AMS for the three and six months ended September 30, 2018 and 2017, respectively, are segregated and included in earnings from discontinued operations, net of tax, in the condensed consolidated statements of operations. The following is a reconciliation of the major classes of line items constituting earnings from discontinued operations, net of tax (dollars in thousands):
|  | For the three months ended |  |  |  | For the six months ended |  |
|  | September 30, |  |  |  | September 30, |  |
|  | 2018 |  | 2017 |  | 2018 |  | 2017
Revenues |  | $ | 167,696 |  | $ | 171,227 |  | $ | 332,185 |  | $ | 336,984
Cost of revenue |  | 95,218 |  | 91,063 |  | 188,835 |  | 180,962
Gross profit |  | 72,478 |  | 80,164 |  | 143,350 |  | 156,022
Operating expenses: |  |  |  |  |  |  |  |
Research and development |  | 7,352 |  | 8,414 |  | 14,918 |  | 17,137
Sales and marketing |  | 21,106 |  | 24,137 |  | 42,633 |  | 48,486
General and administrative |  | 27,789 |  | 8,200 |  | 44,383 |  | 16,969
Gains, losses and other items, net |  | 1,369 |  | 827 |  | 2,653 |  | 732
Total operating expenses |  | 57,616 |  | 41,578 |  | 104,587 |  | 83,324
Income from discontinued operations |  | 14,862 |  | 38,586 |  | 38,763 |  | 72,698
Interest expense |  | (2,864) |  | (2,524) |  | (5,702) |  | (4,866)
Other, net |  | (145) |  | (71) |  | 23 |  | (163)
Earnings from discontinued operations before income taxes |  | 11,853 |  | 35,991 |  | 33,084 |  | 67,669
Income taxes (benefit) |  | (49,950) |  | 13,326 |  | (53,522) |  | 19,225
Earnings from discontinued operations, net of tax |  | $ | 61,803 |  | $ | 22,665 |  | $ | 86,606 |  | $ | 48,444
Substantially all of the interest expense was allocated to discontinued operations. Included in income tax benefit from discontinued operations for the three and six months ended September 30, 2018 is approximately $45.6 million related to the recognition of deferred tax assets for net basis differences of AMS business subsidiaries. The carrying amounts of the major classes of assets and liabilities of AMS are segregated and included in assets and liabilities held for sale in the condensed consolidated balance sheets. The following is a reconciliation of the assets and liabilities held for sale (dollars in thousands):
|  | September 30, 2018 |  | March 31, 2018
|  | (Unaudited) |  | (Unaudited)
Cash and cash equivalents |  | $ | 6,731 |  | $ | 2,261
Trade accounts receivable, net |  | 122,507 |  | 115,141
Refundable income taxes |  | 30 |  | —
Other current assets |  | 23,920 |  | 20,972
Property and equipment, net |  | 116,338 |  | 124,193
Software, net |  | 21,093 |  | 21,014
Goodwill |  | 390,649 |  | 392,356
Purchased software licenses, net |  | 6,594 |  | 7,502
Deferred income taxes |  | 1,538 |  | 1,522
Deferred commissions, net |  | 11,929 |  | —
Other assets, net |  | 1,675 |  | 3,815
Assets held for sale |  | $ | 703,004 |  | $ | 688,776
Trade accounts payable |  | 30,755 |  | 27,929
Accrued payroll and related expenses |  | 21,893 |  | 28,725
Other accrued expenses |  | 18,446 |  | 16,241
Deferred revenue |  | 23,486 |  | 27,214
Income taxes payable |  | — |  | 244
Other liabilities |  | 2,583 |  | 3,707
Liabilities held for sale |  | $ | 97,163 |  | $ | 104,060

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- References No definition available. + Details
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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://www.xbrl.org/2003/role/presentationRef -Publisher FASB -Name Accounting Standards Codification -Topic 360 -URI http://asc.fasb.org/topic&trid=2155823 Reference 2: http://www.xbrl.org/2003/role/presentationRef -Publisher FASB -Name Accounting Standards Codification -Topic 205 -SubTopic 20 -URI http://asc.fasb.org/subtopic&trid=2122178 + Details
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