Discontinued Operations

12 Months Ended

Dec. 31, 2015

Discontinued Operations and Disposal Groups [Abstract]

Discontinued Operations

Discontinued Operations

We sold the assets of our California Shoppers operations to affiliates of OpenGate Capital Management, LLC (OpenGate) on September 27, 2013 for gross proceeds of approximately $22.5 million in cash. In addition, OpenGate agreed to assume certain liabilities associated with the Shoppers division. This transaction resulted in a loss on the sale of $12.4 million, net of $9.0 million of income tax benefit. This loss on sale includes transaction costs of approximately $2.6 million.

Because the Shoppers operations represented distinct business units 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, through the dates of disposal, are as follows:

	Year Ended December 31,
In thousands	2015		2014		2013
Revenues	$	—	$	—	$	140,834
Income from discontinued operations before impairment charges and income taxes	—		—		2,509
Loss on sale before income taxes	—		—		(21,402		)
Income tax benefit	—		—		7,822
Loss from discontinued operations	$	—	$	—	$	(11,071	)

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

	Year Ended December 31,
In thousands	2015		2014		2013
Loss from discontinued operations	$	—	$	—	$	(11,071	)
Loss on sale	—		—		12,355
Deferred income taxes	—		—		10,594
Depreciation and software amortization	—		—		2,592
Other, net	—		—		2,619
Net cash provided by discontinued operations	$	—	$	—	$	17,089