SEGMENT INFORMATION:

12 Months Ended

Mar. 31, 2017

SEGMENT INFORMATION:

SEGMENT INFORMATION:

18.SEGMENT INFORMATION:

The Company reports segment information consistent with the way management internally disaggregates its operations to assess performance and to allocate resources. 

Revenue and cost of revenue are generally directly attributed to the segments. Certain revenue contracts are allocated among the segments based on the relative value of the underlying products and services. Cost of revenue, excluding non-cash stock compensation expense and purchased intangible asset amortization, is directly charged in most cases and allocated in certain cases based upon proportional usage. 

Operating expenses, excluding non-cash stock compensation expense and purchased intangible asset amortization, are attributed to the segment groups as follows:

· Research and development expenses are primarily directly recorded to each segment group based on identified products supported. 

· Sales and marketing expenses are primarily directly recorded to each segment group based on products supported and sold.  

· General and administrative expenses are generally not allocated to the segments unless directly attributable. 

· Gains, losses and other items, net are not allocated to the segment groups.

We do not track our assets by operating segments. Consequently, it is not practical to show assets by operating segment.

The following table presents information by business segment (dollars in thousands):

	2017		2016		2015
Revenues:
Marketing Services	$	410,840	$	449,772	$	446,103
Audience Solutions		322,065		297,846		303,836
Connectivity		147,342		102,470		54,972
Total segment revenues	$	880,247	$	850,088	$	804,911
Gross profit(1):
Marketing Services	$	140,647	$	152,258	$	156,395
Audience Solutions		198,185		167,715		158,386
Connectivity		88,251		61,199		13,322
Total segment gross profit	$	427,084	$	381,172	$	328,103
Income (loss) from operations(1):
Marketing Services	$	80,622	$	74,371	$	81,247
Audience Solutions		123,238		109,598		115,078
Connectivity		5,333		(3,298)		(40,069)
Total segment income from operations	$	209,193	$	180,671	$	156,256
Depreciation and amortization:
Marketing Services	$	7,549	$	9,988	$	12,280
Audience Solutions		13,286		12,909		12,652
Connectivity		21,906		19,932		16,469
Total depreciation and amortization	$	42,741	$	42,829	$	41,401

⁽¹⁾ Gross profit and Income (loss) from operations reflect only the direct and allocable controllable costs of each segment and do not include allocations of corporate expenses (primarily general and administrative expenses) and gains, losses, and other items, net. Additionally, Gross profit and Income (loss) from operations do not reflect non-cash stock compensation expense and purchased intangible asset amortization.

The following table reconciles total operating segment gross profit to gross profit and total operating segment income from operations to income (loss) from operations (dollars in thousands):

	2017		2016		2015
Total segment gross profit	$	427,084	$	381,172	$	328,103
Less:
Purchased intangible asset amortization		18,644		15,466		11,454
Non-cash stock compensation		5,879		2,150		1,459
Accelerated amortization		—		1,850		4,316
Gross profit	$	402,561	$	361,706	$	310,874
Total segment income from operations	$	209,193	$	180,671	$	156,256
Less:
Corporate expenses (principally general and administrative)		117,342		127,844		126,570
Gains, losses and other items, net		8,373		12,132		22,600
Impairment of goodwill and other		—		6,829		—
Purchased intangible asset amortization		18,644		15,466		11,454
Non-cash stock compensation		49,145		31,463		28,316
Income (loss) from operations	$	15,689	$	(13,063)	$	(32,684)