Discontinued Operations

6 Months Ended

Sep. 30, 2014

Discontinued Operations and Disposal Groups [Abstract]

Discontinued Operations

Discontinued Operations

During the fourth quarter of Fiscal 2014, we initiated our plan to sell our PPT^® business, which has been a longstanding legacy business of Rentrak and a significant component of the Home Entertainment operating division. Had we decided to retain the line, for the three months ended September 30, 2014 and 2013, it would have represented 22.5% and 39.5%, respectively, of our total revenue, and for the six months ended September 30, 2014 and 2013, it would have represented 25.1% and 40.8%, respectively, of our total revenue. Our PPT^® business has been in a state of decline due to the decline of physical DVD rentals from retail stores. This strategic decision to sell PPT^® will enable us to focus more fully on the growth of our media measurement business and advanced consumer targeting business. Accordingly, we have restated our financial results, and the PPT^® business is reported as discontinued operations for all periods presented.

Operating results from discontinued operations are included in the Condensed Consolidated Statements of Operations as follows (dollars in thousands):

	Three Months Ended September 30,				Six Months Ended September 30,
	2014		2013		2014		2013
Revenue	$	7,323	$	11,632	$	15,905	$	23,792
Income from operations	$	538	$	1,383	$	1,126	$	2,695
Other expense	37		—		37		—
Income before income taxes	501		1,383		1,089		2,695
Income tax provision	193		581		434		1,132
Income from discontinued operations, net of income taxes	$	308	$	802	$	655	$	1,563

As of September 30, 2014 and March 31, 2014, assets and liabilities relating to discontinued operations are as follows (dollars in thousands):

	September 30, 2014		March 31, 2014
Accounts receivable, net of allowances of $204 and $218	$	3,969	$	5,015
Other current assets	114		167
Property, plant and equipment, net of accumulated depreciation of $1,178 and $1,086	173		261
Total assets held for sale	$	4,256	$	5,443
Accounts payable	$	2,517	$	3,009
Accrued liabilities	1		1
Accrued compensation	477		848
Total liabilities held for sale	$	2,995	$	3,858