Discontinued Operations

9 Months Ended

Sep. 30, 2014

Discontinued Operations

Discontinued Operations

Note M — Discontinued Operations

We sold the assets of our Shoppers operations to affiliates of OpenGate Capital Management, LLC on September 27, 2013.  Because Shoppers represented a distinct business unit with operations and cash flows that can clearly be distinguished, both operationally and for financial purposes, from the rest of Harte Hanks, the results of the Shoppers operations are reported as discontinued operations for all periods presented.

Results of the remaining Harte Hanks marketing services business are reported as continuing operations.

Summarized operating results for the Shoppers discontinued operations are as follows:

	Three Months Ended September 30,
In thousands	2014		2013
Revenues	$	—	$	46,703
Income from discontinued operations before impairment charges and income taxes	—		76
Loss on sale before income taxes			(21,402		)
Income tax benefit	—		8,702
Income from discontinued operations	$	—	$	(12,624	)

	Nine Months Ended September 30,
In thousands	2014		2013
Revenues	$	—	$	140,834
Income from discontinued operations before impairment charges and income taxes	—		2,767
Loss on sale before income taxes			(21,402		)
Income tax benefit	—		7,732
Income from discontinued operations	$	—	$	(10,903	)

The major components of cash flows for the Shoppers discontinued operations are as follows:

	Nine Months Ended September 30,
In thousands	2014		2013
Loss from discontinued operations	$	—	$	(10,903	)
Loss on the sale of discontinued operations	—		12,355
Impairment of Intangible Assets	—		—
Deferred Income Taxes	—		(5,094		)
Depreciation and software amortization	—		2,592
Intangible asset amortization	—		—
Other, net	—		990
Net cash provided by discontinued operations	$	—	$	(60	)