XML 25 R10.htm IDEA: XBRL DOCUMENT
v3.10.0.1

DISPOSITION (Notes) | 9 Months Ended
--- | ---
Dec. 31, 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 as of the second quarter of fiscal 2019. 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 $49.0 million). Additionally, the Company applied $230.5 million of proceeds from the sale to repay outstanding Company debt and interest. The Company reported a gain of $1.7 billion on the sale, which is included in earnings from discontinued operations, net of tax. Summary results of operations of AMS for the three and nine months ended December 31, 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 nine months ended |  |
|  | December 31, |  |  |  | December 31, |  |
|  | 2018 |  | 2017 |  | 2018 |  | 2017
Revenues |  | $ | — |  | $ | 175,750 |  | $ | 332,185 |  | $ | 512,734
Cost of revenue |  | 24,677 |  | 91,394 |  | 213,512 |  | 272,356
Gross profit |  | (24,677) |  | 84,356 |  | 118,673 |  | 240,378
Operating expenses: |  |  |  |  |  |  |  |
Research and development |  | 6,703 |  | 9,007 |  | 21,621 |  | 26,144
Sales and marketing |  | 18,110 |  | 25,898 |  | 60,743 |  | 74,384
General and administrative |  | 27,767 |  | 9,957 |  | 72,150 |  | 26,926
Gains, losses and other items, net |  | (1,658,667) |  | 747 |  | (1,656,014) |  | 1,479
Total operating expenses |  | (1,606,087) |  | 45,609 |  | (1,501,500) |  | 128,933
Income from discontinued operations |  | 1,581,410 |  | 38,747 |  | 1,620,173 |  | 111,445
Interest expense |  | — |  | (2,566) |  | (5,702) |  | (7,432)
Other, net |  | 74 |  | (13) |  | 97 |  | (176)
Earnings from discontinued operations before income taxes |  | 1,581,484 |  | 36,168 |  | 1,614,568 |  | 103,837
Income taxes |  | 509,823 |  | 15,761 |  | 456,301 |  | 34,986
Earnings from discontinued operations, net of tax |  | $ | 1,071,661 |  | $ | 20,407 |  | $ | 1,158,267 |  | $ | 68,851
Substantially all of the interest expense was allocated to discontinued operations. 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):
|  | March 31, 2018
|  | (Unaudited)
Cash and cash equivalents |  | $ | 2,261
Trade accounts receivable, net |  | 115,141
Other current assets |  | 20,972
Property and equipment, net |  | 124,193
Software, net |  | 21,014
Goodwill |  | 392,356
Purchased software licenses, net |  | 7,502
Deferred income taxes |  | 1,522
Other assets, net |  | 3,815
Assets held for sale |  | $ | 688,776
Trade accounts payable |  | 27,929
Accrued payroll and related expenses |  | 28,725
Other accrued expenses |  | 16,241
Deferred revenue |  | 27,214
Income taxes payable |  | 244
Other liabilities |  | 3,707
Liabilities held for sale |  | $ | 104,060
The Company entered into certain agreements with AMS in which services will be provided from the Company to AMS, and from AMS to the Company. The terms of these agreements are primarily 60 months from the date of sale. Cash inflows and outflows related to the agreements are included in cash flows from operating activities in the condensed consolidated statements of cash flows. Revenues and costs related to the agreements are included in loss from operations in the condensed consolidated statements of operations. The related cash inflows and outflows and revenues and costs for the three months ended December 31, 2018 was (dollars in thousands):
|  | For the three months ended December 31, 2018
Cash inflows |  | $ | 9,417
Cash outflows |  | $ | 521
Revenues |  | $ | 11,832
Costs |  | $ | 4,176
The revenues include approximately $4.5 million incremental to amounts reported as LiveRamp revenues in previous periods.

X
- References No definition available. + Details
Name: | us-gaap_DiscontinuedOperationsAndDisposalGroupsAbstract
Namespace Prefix: | us-gaap_
Data Type: | xbrli:stringItemType
Balance Type: | na
Period Type: | duration

X
- 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
Name: | us-gaap_DisposalGroupsIncludingDiscontinuedOperationsDisclosureTextBlock
Namespace Prefix: | us-gaap_
Data Type: | nonnum:textBlockItemType
Balance Type: | na
Period Type: | duration