Discontinued Operations

9 Months Ended

Dec. 31, 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 December 31, 2014 and 2013, it would have represented 21.8% and 38.3%, respectively, of our total revenue, and for the nine months ended December 31, 2014 and 2013, it would have represented 23.9% and 39.9%, 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 December 31,				Nine Months Ended December 31,
	2014		2013		2014		2013
Revenue	$	7,479	$	12,092	$	23,384	$	35,884
Income from operations	$	562	$	1,147	$	1,688	$	3,842
Other expense	—		—		37		—
Income before income taxes	562		1,147		1,651		3,842
Income tax provision	230		482		663		1,614
Income from discontinued operations, net of income taxes	$	332	$	665	$	988	$	2,228

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

	December 31, 2014		March 31, 2014
Accounts receivable, net of allowances of $178 and $218	$	3,812	$	5,015
Other current assets	188		167
Property, plant and equipment, net of accumulated depreciation of $931 and $1,086	120		261
Total assets held for sale	$	4,120	$	5,443
Accounts payable	$	3,600	$	3,009
Accrued liabilities	—		1
Accrued compensation	563		848
Total liabilities held for sale	$	4,163	$	3,858

On February 3, 2015, we finalized our sale of the PPT^® business. See additional information in Note 11.