DISCONTINUED OPERATIONS:

12 Months Ended

Mar. 31, 2020

Discontinued Operations and Disposal Groups [Abstract]

DISCONTINUED OPERATIONS:

DISCONTINUED OPERATIONS:

Acxiom Marketing Solutions ("AMS") business

During fiscal 2019, the Company completed the sale of its AMS business to The Interpublic Group of Companies, Inc. (“IPG”) for $2.3 billion in cash. The business qualified for treatment as discontinued operations during fiscal 2019. At the closing of the transaction, the Company received total consideration of $2.3 billion ($2.3 billion stated sales price less closing adjustments, transaction costs and other items of $49.0 million). Additionally, the Company applied $230.5 million of proceeds from the sale to repay outstanding Company debt and related interest. The Company reported a gain of $1.7 billion on the sale, which was included in earnings from discontinued operations, net of tax.

Summary results of operations of AMS for the fiscal years ended March 31, 2020, 2019 and 2018 are segregated and included in earnings from discontinued operations, net of tax, in the 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):

	Year ended March 31,
	2020		2019		2018
Revenues	$	—	$	332,185	$	697,305
Cost of revenue	—		213,512		370,040
Gross profit	—		118,673		327,265
Operating expenses:
Research and development	—		21,621		34,160
Sales and marketing	—		60,743		106,960
General and administrative	—		71,500		38,372
Gains, losses and other items, net	(957)		(1,673,636)		3,650
Total operating expenses	(957)		(1,519,772)		183,142
Income from discontinued operations	957		1,638,445		144,123
Interest expense	—		(5,702)		(10,131)
Other, net	—		97		(261)
Earnings from discontinued operations before income taxes	957		1,632,840		133,731
Income taxes	207		470,346		42,952
Earnings from discontinued operations, net of tax	$	750	$	1,162,494	$	90,779

Substantially all interest expense was allocated to discontinued operations.

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 consolidated statements of cash flows. Revenues and expenses related to the agreements are included in loss from operations in the consolidated statements of operations. The related cash inflows and outflows and revenues and costs for the periods reported are shown below (dollars in thousands):

	For the twelve months ended		For the six months ended
	March 31, 2020		March 31, 2019
Cash inflows	$	49,543	$	20,173
Cash outflows	$	10,280	$	3,609
Revenues	$	47,864	$	23,810
Costs	$	6,486	$	6,985

The revenues amount includes approximately $15.5 million of revenue from AMS's resale of LiveRamp services to its customers.