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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 endedFor the nine months ended
December 31,December 31,
2018201720182017
Revenues$— $175,750 $332,185 $512,734 
Cost of revenue24,677 91,394 213,512 272,356 
Gross profit(24,677)84,356 118,673 240,378 
Operating expenses:
Research and development6,703 9,007 21,621 26,144 
Sales and marketing18,110 25,898 60,743 74,384 
General and administrative27,767 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 operations1,581,410 38,747 1,620,173 111,445 
Interest expense— (2,566)(5,702)(7,432)
Other, net74 (13)97 (176)
Earnings from discontinued operations before income taxes1,581,484 36,168 1,614,568 103,837 
Income taxes509,823 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, net115,141 
Other current assets20,972 
Property and equipment, net124,193 
Software, net21,014 
Goodwill392,356 
Purchased software licenses, net7,502 
Deferred income taxes1,522 
Other assets, net3,815 
Assets held for sale $688,776 
Trade accounts payable27,929 
Accrued payroll and related expenses28,725 
Other accrued expenses16,241 
Deferred revenue27,214 
Income taxes payable244 
Other liabilities3,707 
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.