SEGMENT INFORMATION:

3 Months Ended

Jun. 30, 2018

Segment Reporting [Abstract]

SEGMENT INFORMATION:

SEGMENT INFORMATION:

The Company reports segment information consistent with the way management internally disaggregates its operations to assess performance and to allocate resources.

During the first quarter of fiscal 2019, the Company realigned its portfolio into two distinct business segments: LiveRamp, the identity infrastructure for powering exceptional customer experiences, and Acxiom Marketing Solutions, the leading provider of services for creating a unified approach to data-driven marketing. This realignment allows Acxiom to best meet client needs in a rapidly evolving marketplace, create a strong foundation for continued growth and enhance value for shareholders.

This structure configured Acxiom’s three previous segments into two, aligning key Audience Solutions’ assets to each. All identity assets including IdentityLink, AbiliTec® intellectual property and Acxiom’s TV integrations were consolidated under LiveRamp. The remaining Audience Solutions’ lines of business for data and data services were combined with Marketing Services to create Acxiom Marketing Solutions.

As a result of this organizational realignment, information that our chief operating decision maker regularly reviews for purposes of allocating resources and assessing performance changed.

Revenues and cost of revenue are generally directly attributed to the segments. Certain revenue contracts are allocated among the segments based on the relative value of the underlying products and services. Cost of revenue, excluding non-cash stock compensation expense and purchased intangible asset amortization, is directly charged in most cases and allocated in certain cases based upon proportional usage. 

Operating expenses, excluding non-cash stock compensation expense and purchased intangible asset amortization, are attributed to the segment groups as follows:

• Research and development expenses are primarily directly recorded to each segment group based on identified products supported.

• Sales and marketing expenses are primarily directly recorded to each segment group based on products supported and sold.

• General and administrative expenses are generally not allocated to the segments unless directly attributable.

• Gains, losses and other items, net are not allocated to the segment groups.

We do not track our assets by operating segments. Consequently, it is not practical to show assets by operating segment.

The following table presents information by business segment (dollars in thousands): 

	For the three months ended
	June 30,
	2018		2017
Revenues:
LiveRamp	$	62,458	$	46,757
Acxiom Marketing Solutions	164,502		165,757
Total segment revenues	$	226,960	$	212,514
Gross profit(1):
LiveRamp	$	44,200	$	28,229
Acxiom Marketing Solutions	73,174		77,864
Total segment gross profit	$	117,374	$	106,093
Income (loss) from operations(1):
LiveRamp	$	9,203	$	(97	)
Acxiom Marketing Solutions	47,458		48,374
Total segment income from operations	$	56,661	$	48,277

⁽¹⁾ Gross profit and income from operations reflect only the direct and allocable controllable costs of each segment and do not include allocations of corporate expenses (primarily general and administrative expenses) and gains, losses, and other items, net. Additionally, segment gross profit and income from operations do not include non-cash stock compensation expense and purchased intangible asset amortization.

The following table reconciles total segment gross profit to gross profit and total operating segment income from operations to income from operations (dollars in thousands): 

	For the three months ended
	June 30,
	2018			2017
Total segment gross profit	$	117,374		$	106,093
Less:
Purchased intangible asset amortization	6,054			5,966
Non-cash stock compensation	1,631			1,573
Gross profit	$	109,689		$	98,554
Total segment income from operations	$	56,661		$	48,277
Less:
Corporate expenses (principally general and administrative)	27,840			25,966
Separation and transformation costs included in general and administrative	6,822			7,119
Gains, losses and other items, net	1,286			(98		)
Purchased intangible asset amortization	6,054			5,966
Non-cash stock compensation	20,360			15,031
Loss from operations	$	(5,701	)	$	(5,707	)