DIVESTITURES:

9 Months Ended

Dec. 31, 2011

DIVESTITURES:

DIVESTITURES:

4.             DIVESTITURES:

Prior to July 12, 2011, the Company owned a 51% interest in Acxiom MENA (“MENA”), a limited liability company registered under the laws and regulations of the Kingdom of Saudi Arabia.  MENA comprised the Company’s Middle East and North Africa operations.  The consolidated net earnings of the Company in the statement of operations included the 49% noncontrolling interests of MENA.  On July 12, 2011, the Company entered into a transaction with MENA’s minority partners to fully dispose of its interest in its MENA subsidiary.  The terms of the disposal included a $1.0 million cash payment to MENA and the release of any claims that the acquirer may have against the Company and an agreement to hold the Company harmless from any future liabilities.  Following the transaction, the Company will have continued involvement primarily related to providing transaction support for a period not longer than two years.  The entity will no longer be a related party of the Company.

The Company recorded a loss on the MENA disposal of $3.4 million in the statement of operations.  Of the $3.4 million loss, $2.5 million is recorded in gains, losses and other items, net and $0.9 million is recorded in net loss attributable to noncontrolling interest.  The deconsolidation of MENA in July 2011 resulted in the elimination of the accumulated deficit attributed to MENA from the Company’s consolidated statement of equity and comprehensive income of $0.9 million.  All goodwill associated with the MENA operations was impaired in the fourth quarter of fiscal 2011, therefore there was no goodwill allocated to the disposed operations.  The revenue associated with the MENA operations for fiscal 2011 was approximately $5.7 million.

Discontinued Operation

On February 1, 2012 the Company completed the sale of its background screening unit, Acxiom Information Security Systems (AISS), to Sterling Infosystems, a New York-based technology firm for $74 million.  The sale qualified for treatment as discontinued operations during the current fiscal quarter.  The results of operations and the balance sheet amounts pertaining to the AISS business have been classified as discontinued operations in the condensed consolidated financial statements.

The AISS business unit was included in the Information Products segment in the Company’s segment results presented in prior periods.  During the current quarter ending December 31, 2011, the Company realigned its segments and the AISS business unit was included in the Other Services segment.  However, the AISS business unit is excluded from segment results and segregated as discontinued operations.

Summary results of operations of the AISS business unit for the three months and nine months ended December 31, 2011 and 2010, respectively, are segregated and included in income from discontinued operations, net of tax in the Condensed Consolidated Statements of Operations and are as follows (dollars in thousands):

	For the quarter ended December 31				For the nine months ended December 31
	2011		2010		2011		2010
Revenues	$	12,324	$	11,205	$	38,816	$	34,645
Earnings from discontinued operations before income taxes	$	1,356	$	733	$	4,778	$	4,483
Income taxes	542		292		1,910		1,792
Income from discontinued operations, net of tax	$	814	$	441	$	2,868	$	2,691

The carrying amounts of the major classes of assets and liabilities of the AISS business unit are segregated and included in assets from discontinued operations and liabilities from discontinued operations in the Condensed Consolidated Balance Sheets and are as follows (dollars in thousands):

	December 31,2011		March 31, 2011
Cash and cash equivalents	$	50	$	50
Trade accounts receivable, net	7,279		5,402
Other current assets	10		23
Property and equipment, net	512		637
Software, net of accumulated amortization	197		382
Goodwill	20,305		20,305
Purchased software licenses, net of accumulated amortization	19		111
Other assets, net	68		231
Assets from discontinued operations	$	28,440	$	27,141
Trade accounts payable and accrued expenses	$	2,849	$	2,441
Liabilities from discontinued operations	$	2,849	$	2,441

The net cash flows related to the AISS discontinued operation for each of the categories of operating, investing, and financing activities were not significant for the nine months ending December 31, 2011 or 2010.