Discontinued Operations

6 Months Ended

Sep. 30, 2011

Discontinued Operations [Abstract]

Discontinued Operations

Note 2 — Discontinued Operations

Sale Transaction

On March 31, 2011, the Company sold its wholly-owned subsidiary, FUNimation, for $24.0 million. The proceeds were received in full during fiscal 2012 and therefore recorded as a receivable on the Company’s Consolidated Balance Sheets at March 31, 2011. In connection with the sale, the Company entered into an agreement to act as FUNimation’s exclusive distributor in the United States on a continuing basis, and will also act as FUNimation’s logistics and fulfillment services provider (see further disclosure in Note 22).

The Company has presented all results of operations, assets and liabilities of FUNimation for all periods presented as discontinued operations, and the consolidated financial statements, including the notes, have been reclassified to reflect such segregation for all periods presented. Prior to reclassification, the discontinued operations were reported in the publishing operating segment. The Company elected to allocate a portion of the consolidated interest expense related to the revolving line of credit, based on a percentage of its assets, to the discontinued operations. The Company used the proceeds received upon the sale of FUNimation to reduce the Company’s borrowings and for general working capital needs.

The summary of operating results from discontinued operations for the three and six months ended September 30, 2010 was as follows (in thousands):

	Three Months Ended			Six Months Ended
	September 30,			September 30,
	2010			2010
Net sales	$	9,008		$	16,709
Interest expense		122			219
Net income from discontinued operations, before income taxes	$	2,637		$	4,059
Income tax expense		(957	)		(1,484	)
Net income from discontinued operations, net of taxes	$	1,680		$	2,575