Note 3 — Divestitures

In the fourth quarter of fiscal year 2016, the Company sold ERwin for approximately $50 million and recognized a gain on disposal of approximately $4 million, including tax expense of approximately $24 million. The effective tax rate on the disposal was unfavorably affected by non-deductible goodwill of approximately $36 million.

In the fourth quarter of fiscal year 2016, the Company also recognized a loss from a prior period divestiture of approximately $2 million.

The divestiture of ERwin resulted from an effort to rationalize the Company’s product portfolio within the Enterprise Solutions segment.

The income from discontinued operations for fiscal year 2016 consisted of the following:



	Year Ended March 31,
(in millions)	2016
Subscription and maintenance	$	20
Software fees and other	7
Total revenue	$	27
Income from operations of discontinued components, net of tax expense of $7 million	$	12
Gain on disposal of discontinued components, net of tax	2
Income from discontinued operations, net of tax	$	14