DISCONTINUED OPERATIONS:

9 Months Ended

Dec. 31, 2019

Discontinued Operations and Disposal Groups [Abstract]

DISCONTINUED OPERATIONS:

DISCONTINUED OPERATIONS:

Acxiom Marketing Solutions ("AMS") business

During fiscal 2019, the Company completed the sale of its AMS business to The Interpublic Group of Companies, Inc. (“IPG”) for $2.3 billion in cash. The business qualified for treatment as discontinued operations during fiscal 2019. Accordingly, the results of operations, cash flows and the balance sheet amounts pertaining to AMS, for all periods reported, have been classified as discontinued operations in the condensed consolidated financial statements.

Results of operations of AMS for the three and nine months ended December 31, 2018 are segregated and included in earnings from discontinued operations, net of tax, in the condensed consolidated statements of operations.

The following is a reconciliation of the major classes of line items constituting earnings from discontinued operations, net of tax (dollars in thousands):

	For the three months ended		For the nine months ended
	December 31, 2018
Revenues	$	—	$	332,185
Cost of revenue	24,677		213,512
Gross profit	(24,677)		118,673
Operating expenses:
Research and development	6,703		21,621
Sales and marketing	18,110		60,743
General and administrative	27,767		72,150
Gains, losses and other items, net	(1,658,667)		(1,656,014)
Total operating expenses	(1,606,087)		(1,501,500)
Income from discontinued operations	1,581,410		1,620,173
Interest expense	—		(5,702)
Other, net	74		97
Earnings from discontinued operations before income taxes	1,581,484		1,614,568
Income taxes	509,823		456,301
Earnings from discontinued operations, net of tax	$	1,071,661	$	1,158,267

Substantially all interest expense was allocated to discontinued operations.

The Company entered into certain agreements with AMS in which services will be provided from the Company to AMS, and from AMS to the Company. The terms of these agreements are primarily 60 months from the date of sale.

Cash inflows and outflows related to the agreements are included in cash flows from operating activities in the condensed consolidated statements of cash flows. Revenues and expenses related to the agreements are included in loss from operations in the condensed consolidated statement of operations. The related cash inflows and outflows and revenues and costs for the nine months ended December 31, 2019 was (dollars in thousands):

	For the nine months ended December 31, 2019
Cash inflows	$	37,150
Cash outflows	$	8,381
Revenues	$	39,494
Costs	$	5,216

The revenues amount includes approximately $15.5 million of revenue from AMS's resale of LiveRamp services to its customers. These amounts were also reported in the prior year as revenues in the condensed consolidated statement of operations.