UNITED STATES
SECURITIES AND EXCHANGE COMMISSION
Washington, D.C. 20549
 
FORM 10-Q
 
(Mark One) 
[X]QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934
 
For the quarterly period ended June 30,December 31, 2018
 
OR 
[  ]TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934
 
For the transition period from ----- to -----
 
Commission file number 0-13163
1-38669
Acxiom CorporationLiveRamp Holdings, Inc. 
(Exact Name of Registrant as Specified in Its Charter)
DELAWARE
(State or Other Jurisdiction of
Incorporation or Organization)
71-058189783-1269307
(I.R.S. Employer
Identification No.)
301 E. Dave Ward Drive225 Bush Street, Seventeenth Floor
Conway, ArkansasSan Francisco, CA
(Address of Principal Executive Offices)
7203294104
(Zip Code)
(501) 342-1000(866) 352-3267
(Registrant's Telephone Number, Including Area Code)
 
Indicate by check mark whether the registrant: (1) has filed all reports required to be filed by Section 13 or 15(d) of the Securities Exchange Act of 1934 during the preceding 12 months (or for such shorter period that the registrant was required to file such reports), and (2) has been subject to such filing requirements for the past 90 days.
 
Yes  [X]               No  [ ]
 
Indicate by check mark whether the registrant has submitted electronically and posted on its corporate Web site, if any, every Interactive Data File required to be submitted and posted pursuant to Rule 405 of Regulation S-T (§232.405 of this chapter) during the preceding 12 months (or for such shorter period that the registrant was required to submit and post such files). 
Yes  [X]               No  [ ]
 
Indicate by check mark whether the registrant is a large accelerated filer, an accelerated filer, a non-accelerated filer or a smaller reporting company.  See the definitions of “large accelerated filer,” “accelerated filer,” “smaller reporting company” and "emerging growth company" in Rule 12b-2 of the Exchange Act. 
Large accelerated filer [X]Accelerated filer   [ ]
Non-accelerated filer [ ]Smaller reporting company [ ]
(Do not check if a smaller reporting company)Emerging growth company [ ]
 
If an emerging growth company, indicate by check mark if the registrant has elected not to use the extended transition period for complying with any new or revised financial accounting standards provided pursuant to Section 13(a) of the Exchange Act. [ ]


Indicate by check mark whether the registrant is a shell company (as defined in Rule 12b-2 of the Exchange Act).
 
Yes  [ ]               No  [X]
 
The number of shares of common stock, $ 0.10 par value per share, outstanding as of AugustFebruary 6, 20182019 was 77,354,458.68,203,284.



ACXIOM CORPORATION



LIVERAMP HOLDINGS, INC. AND SUBSIDIARIES
INDEX
REPORT ON FORM 10-Q
June 30,December 31, 2018
 
Page No.
Item 1. 
as of June 30,December 31, 2018 (Unaudited)
3
4
5
46
57
68
79
911
Item 2. 
2730
Item 3. 
4245
Item 4. 
4245
Item 1. 
4346
Item 1A. 
4346
Item 2.
4547
Item 3. 
4647
Item 4. 
4647
Item 5. 
4647
Item 6. 
4748
4849





PART I.  FINANCIAL INFORMATION
Item 1.  Financial Statements
ACXIOM CORPORATIONLIVERAMP HOLDINGS, INC. AND SUBSIDIARIES
CONDENSED CONSOLIDATED BALANCE SHEETS
(Unaudited)
(Dollars in thousands)
 June 30,
2018		 March 31,
2018		December 31, 2018March 31, 2018
ASSETS (Unaudited)  
ASSETS
Current assets:  
  
Current assets:
Cash and cash equivalents $95,099
 $142,279
Cash and cash equivalents $1,546,774 $140,018 
Trade accounts receivable, net 163,767
 167,188
Trade accounts receivable, net 71,906 52,047 
Refundable income taxes 11,761
 9,733
Refundable income taxes — 9,977 
Other current assets 40,167
 41,145
Other current assets 27,366 20,173 
Assets held for sale Assets held for sale — 138,374 
Total current assets 310,794
 360,345
Total current assets 1,646,046 360,589 
    
Property and equipment, net of accumulated depreciation and amortization 151,407
 156,533
Property and equipment, net of accumulated depreciation and amortization 24,587 32,340 
Software, net of accumulated amortization 31,719
 34,984
Software, net of accumulated amortization 8,027 13,970 
Goodwill 595,795
 595,995
Goodwill 204,671 203,639 
Purchased software licenses, net of accumulated amortization 6,670
 7,703
Deferred income taxes 11,488
 12,225
Deferred income taxes 149 10,703 
Deferred commissions, net 18,137
 —
Deferred commissions, net 9,478 — 
Other assets, net 40,958
 41,468
Other assets, net 34,560 37,854 
Assets held for sale Assets held for sale — 550,402 
 $1,166,968
 $1,209,253
$1,927,518 $1,209,497 
LIABILITIES AND EQUITY  
  
LIABILITIES AND EQUITY
Current liabilities:  
  
Current liabilities:
Current installments of long-term debt $1,327
 $1,583
Current installments of long-term debt $— $1,583 
Trade accounts payable 47,668
 46,688
Trade accounts payable 25,125 18,759 
Accrued payroll and related expenses 21,939
 42,499
Accrued payroll and related expenses 13,960 13,774 
Other accrued expenses 58,938
 55,865
Other accrued expenses 55,135 39,624 
Deferred revenue 31,621
 31,720
Deferred revenue 2,929 4,506 
Income taxes payableIncome taxes payable443,590 — 
Liabilities held for sale Liabilities held for sale — 100,353 
Total current liabilities 161,493
 178,355
Total current liabilities 540,739 178,599 
    
Long-term debt 227,435
 227,837
Long-term debt — 227,837 
Deferred income taxes 42,258
 40,243
Deferred income taxes 178 40,243 
Other liabilities 13,726
 13,723
Other liabilities 26,985 10,016 
Other liabilities held for saleOther liabilities held for sale— 3,707 
Commitments and contingencies 

 

Commitments and contingencies
Equity:  
  
Stockholders' equity: Stockholders' equity:
Common stock 13,773
 13,609
Common stock 14,084 13,609 
Additional paid-in capital 1,256,442
 1,235,679
Additional paid-in capital 1,366,221 1,235,679 
Retained earnings 638,043
 628,331
Retained earnings 1,715,066 628,331 
Accumulated other comprehensive income 8,899
 10,767
Accumulated other comprehensive income 7,891 10,767 
Treasury stock, at cost (1,195,101) (1,139,291)Treasury stock, at cost (1,743,646)(1,139,291)
Total equity 722,056
 749,095
Total equity 1,359,616 749,095 
 $1,166,968
 $1,209,253
$1,927,518 $1,209,497 
 
See accompanying notes to condensed consolidated financial statements.


ACXIOM CORPORATION


LIVERAMP HOLDINGS, INC. AND SUBSIDIARIES
CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS
(Unaudited)
(Dollars in thousands, except per share amounts)
 
 For the three months endedFor the three months ended 
 June 30,December 31, 
 2018 201720182017
Revenues $226,960
 $212,514
Revenues $80,021 $59,121 
Cost of revenue 117,271
 113,960
Cost of revenue 34,838 24,526 
Gross profit 109,689
 98,554
Gross profit 45,183 34,595 
Operating expenses:    Operating expenses:
Research and development 24,536
 23,563
Research and development 20,469 14,311 
Sales and marketing 54,850
 48,440
Sales and marketing 40,054 27,832 
General and administrative 34,718
 32,356
General and administrative 27,828 20,929 
Gains, losses and other items, net 1,286
 (98)Gains, losses and other items, net 5,043 (788)
Total operating expenses 115,390
 104,261
Total operating expenses 93,394 62,284 
Loss from operations (5,701) (5,707)Loss from operations (48,211)(27,689)
Other income (expense):    
Interest expense (2,838) (2,342)
Other, net 524
 (672)
Total other expense (2,314) (3,014)
Loss before income taxes (8,015) (8,721)
Total other income Total other income 10,404 432 
Loss from continuing operations before income taxes Loss from continuing operations before income taxes (37,807)(27,257)
Income taxes (benefit) (5,000) (7,421)Income taxes (benefit) (22,546)(29,791)
Net loss $(3,015) $(1,300)
Net earnings (loss) from continuing operations Net earnings (loss) from continuing operations (15,261)2,534 
Earnings from discontinued operations, net of tax Earnings from discontinued operations, net of tax 1,071,661 20,407 
Net earnings Net earnings $1,056,400 $22,941 
    
Basic loss per share $(0.04) $(0.02)
Basic earnings (loss) per share: Basic earnings (loss) per share:
Continuing operations Continuing operations $(0.20)$0.03 
Discontinued operations Discontinued operations 13.85 0.26 
Net earnings Net earnings $13.65 $0.29 
    
Diluted loss per share $(0.04) $(0.02)
Diluted earnings (loss) per share: Diluted earnings (loss) per share:
Continuing operations Continuing operations $(0.20)$0.03 
Discontinued operations Discontinued operations 13.85 0.25 
Net earnings Net earnings $13.65 $0.28 
 


See accompanying notes to condensed consolidated financial statements.



ACXIOM CORPORATION


LIVERAMP HOLDINGS, INC. AND SUBSIDIARIES
CONDENSED CONSOLIDATED STATEMENTS OF COMPREHENSIVE LOSSOPERATIONS
(Unaudited)
(Dollars in thousands)thousands, except per share amounts)
 
  For the three months ended
  June 30,
  2018 2017
Net loss $(3,015) $(1,300)
Other comprehensive income (loss):    
Change in foreign currency translation adjustment (1,868) 652
Comprehensive loss $(4,883) $(648)
For the nine months ended 
December 31, 
20182017
Revenues $207,304 $159,891 
Cost of revenue 82,958 72,596 
Gross profit 124,346 87,295 
Operating expenses: 
Research and development 54,379 44,750 
Sales and marketing 109,317 77,904 
General and administrative 71,128 68,240 
Gains, losses and other items, net 5,534 2,042 
Total operating expenses 240,358 192,936 
Loss from operations (116,012)(105,641)
Total other income 10,479 115 
Loss from continuing operations before income taxes (105,533)(105,526)
Income taxes (benefit) (21,274)(54,980)
Net loss from continuing operations (84,259)(50,546)
Earnings from discontinued operations, net of tax 1,158,267 68,851 
Net earnings $1,074,008 $18,305 
Basic earnings (loss) per share: 
Continuing operations $(1.09)$(0.64)
Discontinued operations 14.99 0.87 
Net earnings $13.90 $0.23 
Diluted earnings (loss) per share: 
Continuing operations $(1.09)$(0.64)
Discontinued operations 14.99 0.87 
Net earnings $13.90 $0.23 
 
See accompanying notes to condensed consolidated financial statements.



ACXIOM CORPORATION


LIVERAMP HOLDINGS, INC. AND SUBSIDIARIES
CONDENSED CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME
(Unaudited)
(Dollars in thousands)
For the three months ended 
December 31, 
20182017
Net earnings $1,056,400 $22,941 
Other comprehensive income (loss): 
Change in foreign currency translation adjustment (2,301)416 
Comprehensive income $1,054,099 $23,357 
See accompanying notes to condensed consolidated financial statements.



LIVERAMP HOLDINGS, INC. AND SUBSIDIARIES
CONDENSED CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME
(Unaudited)
(Dollars in thousands)
For the nine months ended 
December 31, 
20182017
Net earnings $1,074,008 $18,305 
Other comprehensive income (loss): 
Change in foreign currency translation adjustment (2,876)1,827 
Comprehensive income $1,071,132 $20,132 
See accompanying notes to condensed consolidated financial statements.



LIVERAMP HOLDINGS, INC. AND SUBSIDIARIES
CONDENSED CONSOLIDATED STATEMENT OF EQUITY
THREENINE MONTHS ENDED JUNE 30,DECEMBER 31, 2018
(Unaudited)
(Dollars in thousands)
 
         Accumulated      Accumulated 
 Common Stock Additional   other Treasury Stock  Common Stock Additional other Treasury Stock 
 Number   paid-in Retained comprehensive Number   Total Number paid-in Retained comprehensive Number Total 
 of shares Amount Capital earnings income (loss) of shares Amount Equityof shares Amount Capital earnings income (loss) of shares Amount Equity 
Balances at March 31, 2018 136,079,676
 $13,609
 $1,235,679
 $628,331
 $10,767
 (58,304,917) $(1,139,291) $749,095
Balances at March 31, 2018 136,079,676 $13,609 $1,235,679 $628,331 $10,767 (58,304,917)$(1,139,291)$749,095 
Cumulative-effect adjustment from adoption of ASU 2014-09 —
 —
 —
 12,727
 —
 —
 —
 $12,727
Cumulative-effect adjustment from adoption of ASU 2014-09 — — — 12,727 — — — 12,727 
Employee stock awards, benefit plans and other issuances 233,784
 23
 4,093
 —
 —
 (391,898) (10,044) $(5,928)Employee stock awards, benefit plans and other issuances1,122,879 112 17,243 — — (953,523)(36,906)(19,551)
Non-cash stock-based compensation 149,416
 15
 16,796
 —
 —
 —
 —
 $16,811
Non-cash stock-based compensation334,225 33 113,680 — — — — 113,713 
Restricted stock units vested 1,259,681
 126
 (126) —
 —
 —
 —
 $—
Restricted stock units vested3,300,959 330 (330)— — — — — 
Warrant exercisesWarrant exercises— — (51)— — 3,488 51 — 
Acquisition of treasury stock —
 —
 —
 —
 —
 (1,853,071) (45,766) $(45,766)Acquisition of treasury stock— — — — — (2,253,265)(64,107)(64,107)
Acquisition of treasury stock from tender offerAcquisition of treasury stock from tender offer— — — — — (11,235,955)(503,393)(503,393)
Comprehensive income:  
  
  
  
  
  
  
 

Comprehensive income:
Foreign currency translation —
 —
 —
 —
 (1,868) —
 —
 $(1,868)Foreign currency translation— — — — (2,876)— — (2,876)
Net loss —
 —
 —
 (3,015) —
 —
 —
 $(3,015)
Balances at June 30, 2018 137,722,557
 $13,773
 $1,256,442
 $638,043
 $8,899
 (60,549,886) $(1,195,101) $722,056
Net earningsNet earnings— — — 1,074,008 — — — 1,074,008 
Balances at December 31, 2018Balances at December 31, 2018140,837,739 $14,084 $1,366,221 $1,715,066 $7,891 (72,744,172)$(1,743,646)$1,359,616 
 
See accompanying notes to condensed consolidated financial statements



ACXIOM CORPORATION


LIVERAMP HOLDINGS, INC. AND SUBSIDIARIES
CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS
(Unaudited)
(Dollars in thousands)
 For the three months endedFor the nine months ended 
 June 30,December 31, 
 2018 201720182017
Cash flows from operating activities:    Cash flows from operating activities:
Net loss $(3,015) $(1,300)
Adjustments to reconcile net loss to net cash provided by operating activities:  
  
Net earnings Net earnings $1,074,008 $18,305 
Earnings from discontinued operations, net of tax Earnings from discontinued operations, net of tax (1,158,267)(68,851)
Adjustments to reconcile net earnings to net cash used in operating activities: Adjustments to reconcile net earnings to net cash used in operating activities:
Depreciation and amortization 21,529
 21,110
Depreciation and amortization 25,274 28,255 
Loss on disposal or impairment of assets 48
 163
Loss on disposal or impairment of assets 3,345 2,303 
Provision for doubtful accountsProvision for doubtful accounts1,259 322 
Accelerated deferred debt costs —
 720
Accelerated deferred debt costs — 720 
Deferred income taxes (1,335) 2,497
Deferred income taxes 20,723 (19,425)
Non-cash stock compensation expense 20,360
 15,038
Non-cash stock compensation expense 61,547 38,844 
Changes in operating assets and liabilities:    
Changes in operating assets and liabilities:
Accounts receivable, net 4,329
 11,960
Accounts receivable, net (35,011)(9,818)
Deferred costs and other assets, net (2,995) (3,377)
Deferred commissions Deferred commissions (3,035)— 
Other assetsOther assets654 2,365 
Accounts payable and other liabilities (21,704) (37,073)Accounts payable and other liabilities (29,274)1,786 
Deferred revenue (33) (4,787)Deferred revenue (1,555)439 
Net cash provided by operating activities 17,184
 4,951
Net cash used in operating activities Net cash used in operating activities (40,332)(4,755)
    
Cash flows from investing activities:  
  
Cash flows from investing activities:
Capitalized software development costs (3,606) (3,388)Capitalized software development costs (1,322)(1,720)
Capital expenditures (4,399) (6,888)Capital expenditures (3,973)(5,249)
Data acquisition costs (179) (190)
Equity investments (2,500) —
Equity investments (2,500)(1,000)
Net cash received from disposition Net cash received from disposition — 4,000 
Net cash used in investing activities (10,684) (10,466)Net cash used in investing activities (7,795)(3,969)
    
Cash flows from financing activities:  
  
Cash flows from financing activities:
Proceeds from debt —
 230,000
Proceeds from debt — 230,000 
Payments of debt (592) (225,572)Payments of debt (233,293)(226,732)
Fees for debt refinancing (300) (4,001)Fees for debt refinancing (300)(4,001)
Sale of common stock, net of stock acquired for withholding taxes (5,928) (2,539)
Sale of common stock Sale of common stock 17,355 15,309 
Shares repurchased for tax withholdings upon vesting of stock-based awards Shares repurchased for tax withholdings upon vesting of stock-based awards (36,906)(10,202)
Acquisition of treasury stock (45,766) —
Acquisition of treasury stock(64,107)(39,441)
Acquisition of treasury stock from tender offer Acquisition of treasury stock from tender offer (503,393)— 
Net cash used in financing activities (52,586) (2,112)Net cash used in financing activities (820,644)(35,067)
    
Effect of exchange rate changes on cash (1,094) 430
    
Net change in cash and cash equivalents (47,180) (7,197)
Cash and cash equivalents at beginning of period 142,279
 170,343
Cash and cash equivalents at end of period $95,099
 $163,146
    
Net cash used in continuing operations Net cash used in continuing operations $(868,771)$(43,791)
See accompanying notes to condensed consolidated financial statements.

ACXIOM CORPORATION


LIVERAMP HOLDINGS, INC. AND SUBSIDIARIES
CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS (Continued)
(Unaudited)
(Dollars in thousands)



  For the three months ended
  June 30,
  2018 2017
Supplemental cash flow information:  
  
Cash paid during the period for:  
  
Interest $2,607
 $2,375
Income taxes, net of refunds 1,100
 354
     
For the nine months ended
December 31,
20182017
Cash flows from discontinued operations:
From operating activities40,980 81,369 
From investing activities2,236,530 (30,934)
Effect of exchange rate changes on cash(172)175 
Net cash provided by discontinued operations2,277,338 50,610 
Net cash provided by continuing and discontinued operations1,408,567 6,819 
Effect of exchange rate changes on cash(1,811)868 
Net change in cash and cash equivalents1,406,756 7,687 
Cash and cash equivalents at beginning of period140,018 168,680 
Cash and cash equivalents at end of period$1,546,774 $176,367 



Supplemental cash flow information: 
Cash (received) during the period for:     
Income taxes (239)(362)
Non-cash investing and financing activities:
Leasehold improvements paid directly by lessor — 978 


See accompanying notes to condensed consolidated financial statements.







ACXIOM CORPORATION


LIVERAMP HOLDINGS, INC. AND SUBSIDIARIES
NOTES TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS
(Unaudited)
 
1. BASIS OF PRESENTATION AND SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES:
 
On September 20, 2018, we implemented a holding company reorganization, as a result of which Acxiom Holdings, Inc. became the successor issuer to Acxiom Corporation. On October 1, 2018, we changed our name to LiveRamp Holdings, Inc. ("LiveRamp"). References to "we", "us", "our", "Registrant", or the "Company" for events that occurred prior to September 20, 2018 refer to Acxiom Corporation and its subsidiaries; for events that occurred from September 20, 2018 to October 1, 2018, to Acxiom Holdings, Inc. and its subsidiaries; and after October 1, 2018, to LiveRamp Holdings, Inc. and its subsidiaries.

These condensed consolidated financial statements have been prepared by Acxiom Corporation (“Registrant,” “Acxiom,” we, us or the “Company”),LiveRamp, without audit, pursuant to the rules and regulations of the Securities and Exchange Commission (the “SEC”).  In the opinion of the Registrant’s management, all adjustments necessary for a fair presentation of the results for the periods included have been made, and the disclosures are adequate to make the information presented not misleading.  All such adjustments are of a normal recurring nature.  Certain note information has been omitted because it has not changed significantly from that reflected in Notes 1 through 18 of the Notes to Consolidated Financial Statements filed as part of Item 8 of the Registrant’s annual report on Form 10-K for the fiscal year ended March 31, 2018 (“2018 Annual Report”), as filed with the SEC on May 25, 2018.  This quarterly report and the accompanying condensed consolidated financial statements should be read in connection with the 2018 Annual Report.  The financial information contained in this quarterly report is not necessarily indicative of the results to be expected for any other period or for the full fiscal year ending March 31, 2019.
 
Management of the Company has made a number of estimates and assumptions relating to the reporting of assets and liabilities and the disclosure of contingent assets and liabilities to prepare these condensed consolidated financial statements in conformity with accounting principles generally accepted in the United States (“U.S. GAAP”).  Actual results could differ from those estimates.  Certain of the accounting policies used in the preparation of these condensed consolidated financial statements are complex and require management to make judgments and/or significant estimates regarding amounts reported or disclosed in these financial statements.  Additionally, the application of certain of these accounting policies is governed by complex accounting principles and their interpretation.  A discussion of the Company’s significant accounting principles and their application is included in Note 1 of the Notes to Consolidated Financial Statements and in Item 7, Management’s Discussion and Analysis of Financial Condition and Results of Operations, of the Company’s 2018 Annual Report.
 
Accounting Pronouncements Adopted During the Current Year
 
In May 2014,2017, the Financial Accounting Standards Board ("FASB") issued Accounting Standards Update ("ASU") No. 2014-09, Revenue from Contracts with Customers (Topic 606) and issued subsequent amendments to the initial guidance in August 2015, March 2016, April 2016, May 2016 and December 2016 within ASU 2015-14, ASU 2016-08, ASU 2016-10, ASU 2016-12 and ASU 2016-20, respectively. Topic 606 supersedes nearly all existing revenue recognition guidance under U.S. GAAP. The core principle of the new guidance is to recognize revenues when promised goods or services are transferred to customers in an amount that reflects the consideration to which the entity expects to be entitled in exchange for those goods or services. We adopted Topic 606 as of April 1, 2018 using the modified retrospective method. See Note 2 for further details.

In May 2017, the FASB issued ASU 2017-09, "Compensation-Stock Compensation (Topic 719): Scope of Modification Accounting" ("ASU 2017-09"). ASU 2017-09 clarifies when changes to the terms or conditions of a stock-based payment award must be accounted for as modifications. ASU 2017-09 will reduce diversity in practice and result in fewer changes to the terms of an award being accounted for as modifications. Under ASU 2017-09, an entity will not apply modification accounting to a stock-based payment award if the award's fair value, vesting conditions and classification as an equity or liability instrument are the same immediately before and after the change. ASU 2017-09 will be applied prospectively to awards modified on or after the adoption date. The guidance is effective for annual periods, and interim periods within those annual periods, beginning after December 15, 2017. ASU 2017-09 is effective for the Company beginning in fiscal 2019. We adopted the standard in the current fiscal quarter,year, and adoption of this guidance did not have a material impact on our condensed consolidated financial statements and related disclosures.


In May 2014, the FASB issued ASU No. 2014-09, Revenue from Contracts with Customers (Topic 606) and issued subsequent amendments to the initial guidance in August 2015, March 2016, April 2016, May 2016 and December 2016 within ASU 2015-14, ASU 2016-08, ASU 2016-10, ASU 2016-12 and ASU 2016-20, respectively. Topic 606 supersedes nearly all existing revenue recognition guidance under U.S. GAAP. The core principle of the new guidance is to recognize revenues when promised goods or services are transferred to customers in an amount that reflects the consideration to which the entity expects to be entitled in exchange for those goods or services. We adopted Topic 606 as of April 1, 2018 using the modified retrospective method. See Note 2 for further details.



Recent Accounting Pronouncements Not Yet Adopted

In January 2017, the FASB issued ASU 2017-04, "Intangibles-Goodwill and Other (Topic 350): Simplifying the Test for Goodwill Impairment" ("ASU 2017-04"), which eliminates step two from the goodwill impairment test. Under ASU 2017-04, an entity should recognize an impairment charge for the amount by which the carrying amount of a reporting unit exceeds its fair value; however, the loss recognized should not exceed the total amount of goodwill

allocated to that reporting unit. ASU 2017-04 is effective for annual periods beginning after December 15, 2019 (fiscal 2021 for the Company), including interim periods within those fiscal years; earlier adoption is permitted for goodwill impairment tests performed on testing dates after January 1, 2017. The Company does not expect the adoption of this guidance to have a material impact on its condensed consolidated financial statements and related disclosures.


In February 2016, the FASB issued ASU No. 2016-02, "Leases (Topic 842)" ("ASU 2016-02"), as a comprehensive new standard that amends various aspects of existing guidance for leases and requires additional disclosures about leasing arrangements. The new standard will require lessees to recognize a right-of-use asset and a lease liability on the balance sheet for all leases except short-term leases. For lessees, leases will continue to be classified as either operating or financing in the income statement. Lessor accounting is similar to the current model but updated to align with certain changes to the lessee model. Lessors will continue to classify leases as operating, direct financing or sales-type leases. Subsequently, the FASB has issued various ASU's to provide further clarification around aspects of Topic 842.842, including an alternative method that permits application of the new guidance at the beginning of adoption, recognizing a cumulative-effect adjustment to the opening balance of retained earnings in the period of adoption, in addition to the method of applying the new guidance retrospectively to each prior reporting period presented.  ASU 2016-02 is effective for annual periods beginning after December 15, 2018 (fiscal 2020 for the Company), including interim periods within those fiscal years, with early adoption permitted. We will adopt the new standard on April 1, 2019 using the modified retrospective approach. The Company is continuing to evaluate the impact of the adoption of this guidance on its condensed consolidated financial statements and related disclosures. We plan to take advantage of the transition package of practical expedients permitted within the new standard, which will allow us to carry forward the historical lease classification, to not reassess whether any existing contracts are or contain leases and to not reassess initial direct costs for any existing leases. We also plan to make policy elections not to apply the balance sheet recognition requirements for qualifying short-term leases and not to separate non-lease components, as applicable, to our facility leases. We are currently assessing whether to elect the hindsight practical expedient to determine the reasonably certain lease term for existing leases.
 
The Company does not anticipate that the adoption of any other recent accounting pronouncements will have a material impact on the Company's consolidated financial position, results of operations or cash flows.


2. TOPIC 606 ADOPTION IMPACT AND REVENUE FROM CONTRACTS WITH CUSTOMERS:


On April 1, 2018, we adopted Topic 606 using the modified retrospective method applied to those contracts which were not completed as of April 1, 2018. Results for reporting periods beginning after April 1, 2018 are presented under Topic 606, while prior period amounts are not adjusted and continue to be reported in accordance with our historic reporting under Topic 605.


Under Topic 606, revenue is recognized upon transfer of control of promised products or services to customers in an amount that reflects the consideration the Company expects to receive in exchange for those products or services. The Company enters into contracts that can include various combinations of products and services, which are generally capable of being distinct and accounted for as separate performance obligations. The Company determines revenue recognition through the following steps:

•Identification of the contract, or contracts, with a customer
•Identification of the performance obligations in the contract
•Determination of the transaction price
•Allocation of the transaction price to the performance obligations in the contract
•Recognition of revenue when, or as, the Company satisfies a performance obligation




We recorded a net increase to our opening retained earnings of $12.7 million, net of tax, due to the cumulative impact of adopting Topic 606, with the impact primarily related to the capitalization of costs of obtaining customer contracts.


The details of the significant changes and quantitative impact of the changes are disclosed below.


Costs of Obtaining Customer Contracts
The Company previously recognized commission payments made for obtaining a contract as an operating expense when incurred. Under Topic 606, the Company capitalizes incremental costs to acquire contracts and amortizes them over the expected period of benefit, which we have determined as a range of two to fivebe four years. As of June 30,December 31, 2018, the remaining unamortized contract costs were $18.1$9.5 million and are included in deferred commissions, net, in the condensed consolidated balance sheet. Net capitalized costs of $2.9$3.0 million were recorded as a reduction to operating expense for the threenine months ended June 30,December 31, 2018. No impairment was recognized for the threenine months ended June 30,December 31, 2018.

Contingent Revenue
The Company previously limited revenue recognition to the amount that was not contingent on the provision of future services. This was typically from fees paid over the contract term for services delivered at the beginning of the contract term.



Impacts on Financial Statements
Condensed Consolidated Balance Sheet Impact of changes in accounting policies 
As reported December 31, 2018 Adjustments Balances without adoption of Topic 606 
Deferred income taxes 149 2,256 2,405 
Deferred commissions, net 9,478 (9,478)— 
Others 1,917,891 — 1,917,891 
Total assets $1,927,518 $(7,222)$1,920,296 
Total liabilities 567,902 — 567,902 
Retained earnings 1,715,066 (7,222)1,707,844 
Other equity (355,450)— (355,450)
Total equity 1,359,616 (7,222)1,352,394 
Total liabilities and equity $1,927,518 $(7,222)$1,920,296 


Condensed Consolidated Statement of Operations Impact of changes in accounting policies 
As reported for the nine months ended December 31, 2018 Adjustments Balances without adoption of Topic 606 
Revenues $207,304 $— $207,304 
Cost of revenue 82,958 — 82,958 
Gross profit $124,346 $— $124,346 
Operating expenses: 
Sales and marketing $109,317 $3,035 $112,352 
Other operating expenses 131,041 — 131,041 
Total operating expenses 240,358 3,035 243,393 
Loss from operations (116,012)(3,035)(119,047)
Total other income 10,479 — 10,479 
Loss from continuing operations before income taxes (105,533)(3,035)(108,568)
Income taxes (benefit) (21,274)(722)(21,996)
Net loss from continuing operations $(84,259)$(2,313)$(86,572)



Condensed Consolidated Balance Sheet Impact of changes in accounting policies
  As reported June 30, 2018 Adjustments Balances without adoption of Topic 606
Trade accounts receivable, net $163,767
 $(1,943) $161,824
Refundable income taxes 11,761
 540
 12,301
Deferred income taxes 11,488
 (64) 11,424
Deferred commissions, net 18,137
 (18,137) —
Others 961,815
 —
 961,815
   Total assets $1,166,968
 $(19,604) $1,147,364
       
Deferred revenue $31,621
 $(232) $31,389
Deferred income taxes 42,258
 (4,761) 37,497
Others 371,033
 —
 371,033
   Total liabilities 444,912
 (4,993) 439,919
       
Retained earnings 638,043
 (14,611) 623,432
Other equity 84,013
 —
 84,013
Total equity 722,056
 (14,611) 707,445
   Total liabilities and equity $1,166,968
 $(19,604) $1,147,364


Condensed Consolidated Statement of Comprehensive Income Impact of changes in accounting policies 
As reported for the nine months ended December 31, 2018 Adjustments Balances without adoption of Topic 606 
Net earnings $1,074,008 $(2,313)$1,071,695 
Other comprehensive loss: 
Change in foreign currency translation adjustment (2,876)— (2,876)
Comprehensive income $1,071,132 $(2,313)$1,068,819 



Condensed Consolidated Statement of Operations Impact of changes in accounting policies
  As reported for the three months ended June 30, 2018 Adjustments Balances without adoption of Topic 606
Revenues $226,960
 $296
 $227,256
Cost of revenue 117,271
 —
 117,271
Gross profit $109,689
 $296
 $109,985
       
Operating expenses:      
   Sales and marketing $54,850
 $2,939
 $57,789
   Other operating expenses 60,540
 —
 60,540
     Total operating expenses 115,390
 2,939
 118,329
       
Loss from operations (5,701) (2,643) (8,344)
     Total other expense (2,314) —
 (2,314)
Loss before income taxes (8,015) (2,643) (10,658)
Income taxes (5,000) (695) (5,695)
Net loss $(3,015) $(1,948) $(4,963)
Condensed Consolidated Statement of Cash Flows Impact of changes in accounting policies 
As reported for the nine months ended December 31, 2018Adjustments Balances without adoption of Topic 606 
Net earnings$1,074,008 $(2,313)$1,071,695 
Earnings from discontinued operations(1,158,267)— (1,158,267)
Adjustments for:
Deferred income taxes20,723 (722)20,001 
Others91,425 — 91,425 
Changes in:
Accounts receivable, net(35,011)— (35,011)
Deferred commissions(3,035)3,035 — 
Other assets654 — 654 
Accounts payable and other liabilities(29,274)— (29,274)
Deferred revenue(1,555)— (1,555)
Net cash from operating activities(40,332)— (40,332)
Net cash from investing activities(7,795)— (7,795)
Net cash from financing activities(820,644)— (820,644)
Net cash from discontinued operations2,277,338 — 2,277,338 
Effect of exchange rate changes on cash(1,811)— (1,811)
Net change in cash and cash equivalents1,406,756 — 1,406,756 
Cash and cash equivalents at beginning of period140,018 — 140,018 
Cash and cash equivalents at end of period$1,546,774 $— $1,546,774 



Condensed Consolidated Statement of Comprehensive Loss Impact of changes in accounting policies
  As reported for the three months ended June 30, 2018 Adjustments Balances without adoption of Topic 606
Net loss $(3,015) $(1,948) $(4,963)
Other comprehensive loss:      
Change in foreign currency translation adjustment (1,868) —
 (1,868)
Comprehensive loss $(4,883) $(1,948) $(6,831)


Condensed Consolidated Statement of Cash Flows Impact of changes in accounting policies
  As reported for the three months ended June 30, 2018 Adjustments Balances without adoption of Topic 606
Net loss $(3,015) $(1,948) $(4,963)
Adjustments for:      
Deferred income taxes (1,335) (695) (2,030)
Others 41,937
 —
 41,937
Changes in:      
Accounts receivable, net 4,329
 (256) 4,073
Deferred costs and other assets (2,995) 2,939
 (56)
Accounts payable and other liabilities (21,704) —
 (21,704)
Deferred revenue (33) (40) (73)
Net cash from operating activities 17,184
 —
 17,184
Net cash from investing activities (10,684) —
 (10,684)
Net cash from financing activities (52,586) —
 (52,586)
Effect of exchange rate changes on cash (1,094) —
 (1,094)
       
Net change in cash and cash equivalents (47,180) —
 (47,180)
Cash and cash equivalents at beginning of period 142,279
 —
 142,279
Cash and cash equivalents at end of period $95,099
 $—
 $95,099



Disaggregation of Revenue


In the following table, revenue is disaggregated by primary geographical market and major service offerings. The table also includes a reconciliation of the disaggregated revenue within the reportable segments.offerings (dollars in thousands).

For the nine months ended
December 31,
Primary Geographical Markets20182017
United States $189,997 $143,937 
Europe 13,858 12,916 
APAC 3,449 3,038 
$207,304 $159,891 
Major Offerings/Services 
Subscription 171,184 125,157 
Marketplace and Other 36,120 34,734 
$207,304 $159,891 
Reportable Segments
June 30, 2018
(dollars in thousands)
Primary Geographical Markets Acxiom Marketing Solutions LiveRamp Total
United States $150,307
 $56,222
 $206,529
Europe 11,115
 4,908
 16,023
APAC 3,080
 1,328
 4,408
  $164,502
 $62,458
 $226,960
       
Major Offerings/Services      
Audience Creation $45,452
 $—
 $45,452
Data Analytics 9,025
 —
 9,025
Data Management 110,025
 —
 110,025
Subscription —
 51,329
 51,329
Marketplace and Other —
 11,129
 11,129
  $164,502
 $62,458
 $226,960


Reportable Segments
June 30, 2017
(dollars in thousands)
Primary Geographical Markets Acxiom Marketing Solutions LiveRamp Total
United States $152,129
 $42,118
 $194,247
Europe 10,735
 3,802
 14,537
APAC 2,893
 837
 3,730
  $165,757
 $46,757
 $212,514
       
Major Offerings/Services      
Audience Creation $51,303
 $—
 $51,303
Data Analytics 8,858
 —
 8,858
Data Management 105,596
 —
 105,596
Subscription —
 37,052
 37,052
Marketplace and Other —
 9,705
 9,705
  $165,757
 $46,757
 $212,514



Transaction Price Allocated to the Remaining Performance Obligations
We have performance obligations primarily related to AMS offerings, associated with fixed commitments in customer contracts for future services that have not yet been recognized in our condensed consolidated financial statements. The amount of fixed revenue not yet recognized was $1.1 billion$335.1 million as of June 30,December 31, 2018. The Company expects to recognize revenue on approximately 75%substantially all of these remaining performance obligations by March 31, 2021 with the balance recognized thereafter.




3. LOSSEARNINGS PER SHARE AND STOCKHOLDERS’ EQUITY:
 
LossEarnings Per Share
 
A reconciliation of the numerator and denominator of basic and diluted lossearnings per share is shown below (in thousands, except per share amounts):
  For the three months ended
  June 30,
  2018 2017
Basic loss per share:    
Net loss $(3,015) $(1,300)
     
Basic weighted-average shares outstanding 76,935
 78,672

  
  
Basic loss per share $(0.04) $(0.02)
     
Diluted loss per share:  
  
Basic weighted-average shares outstanding 76,935
 78,672
Dilutive effect of common stock options, warrants, and restricted stock as computed under the treasury stock method —
 —
Diluted weighted-average shares outstanding 76,935
 78,672

  
  
Diluted loss per share $(0.04) $(0.02)
For the three months ended For the nine months ended 
December 31, December 31, 
2018201720182017
Basic earnings per share: 
Net earnings (loss) from continuing operations $(15,261)$2,534 $(84,259)$(50,546)
Earnings from discontinued operations, net of tax 1,071,661 20,407 1,158,267 68,851 
Net earnings$1,056,400 $22,941 $1,074,008 $18,305 
Basic weighted-average shares outstanding 77,398 79,043 77,260 78,983 
Continuing operations $(0.20)$0.03 $(1.09)$(0.64)
Discontinued operations 13.85 0.26 14.99 0.87 
Basic earnings per share $13.65 $0.29 $13.90 $0.23 
Diluted earnings per share: 
Basic weighted-average shares outstanding 77,398 79,043 77,260 78,983 
Dilutive effect of common stock options, warrants, and restricted stock as computed under the treasury stock method — 2,826 — — 
Diluted weighted-average shares outstanding 77,398 81,869 77,260 78,983 
Continuing operations $(0.20)$0.03 $(1.09)$(0.64)
Discontinued operations 13.85 0.25 14.99 0.87 
Diluted earnings per share $13.65 $0.28 $13.90 $0.23 
 
Due to the net loss incurred by the Companyfrom continuing operations during the quartersthree months ended June 30,December 31, 2018, and 2017, the dilutive effect of options, warrants and restricted stock units covering 2.43.3 million shares of common stock was excluded from the diluted loss per share calculation since the impact on the calculation was anti-dilutive. Due to the net loss from continuing operations during the nine months ended December 31, 2018 and 2017, respectively, the dilutive effect of options, warrants and restricted stock units covering 3.5 million and 2.82.6 million shares of common stock, respectively, was excluded from the diluted loss per share calculation since the impact on the calculation was anti-dilutive.


Additional options, and warrants to purchase shares of common stock, and restricted stock units that were outstanding during the periods presented but were not included in the computation of diluted loss per share because the effect was anti-dilutive are shown below (shares in thousands):
For the three months ended For the nine months ended 
December 31, December 31, 
2018 2017 2018 2017 
Number of shares outstanding under options, warrants and restricted stock units plans 22 97 235 89 
Range of exercise prices for options N/A $32.85 N/A $32.85 

  For the three months ended
  June 30,
  2018 2017
Number of shares outstanding under options, warrants and restricted stock units 119
 20
Range of exercise prices for options $32.85
 $32.85

Stockholders’ Equity
 
On August 29, 2011, the board of directors adopted a common stock repurchase program.  That program was subsequently modified and expanded, most recently on March 30,October 25, 2018.  On that date, the board of directors authorized a $500 million increase to the existing common stock repurchase program. Under the modified common stock repurchase program, the Company may purchase up to $500.0 million$1 billion of its common stock through the period

ending December 31, 2019. 2020.

During the threenine months ended June 30,December 31, 2018, the Company repurchased 1.92.3 million shares of its common stock for $45.8 million.$64.1 million under the stock repurchase program.  Through June 30,December 31, 2018, the Company had repurchased a total of 22.022.4 million shares of its stock for $420.4 million, leaving remaining capacity of $79.6$438.7 million under the stock repurchase program.program, leaving remaining capacity of $561.3 million.

On October 25, 2018, the board of directors authorized a Dutch auction tender offer (the "Offer") to purchase shares of its outstanding common stock at an initial aggregate purchase price not to exceed $500 million, plus up to 2% of the Company's outstanding shares of common stock in accordance with the rules and regulations of the SEC. On December 13, 2018, the Company accepted for purchase 11,235,955 shares of its common stock at a price of $44.50 per share, for an aggregate cost of $503.4 million, including fees and expenses. These shares represented approximately 14.2% of the shares outstanding.
 
Accumulated Other Comprehensive Income
 
Accumulated other comprehensive income accumulated balances of $8.9$7.9 million and $10.8 million at June 30,December 31, 2018 and March 31, 2018, respectively, reflect accumulated foreign currency translation adjustments.
 
4. SHARE-BASEDDISPOSITION:
On July 2, 2018, the Company entered into a definitive agreement to sell its Acxiom Marketing Solutions business (“AMS”) to The Interpublic Group of Companies, Inc. (“IPG”) for $2.3 billion in cash. As required regulatory approvals were being sought and received, the Company solicited and received shareholder approval for the transaction. Shareholder approval was received on September 20, 2018, and the Company began reporting the financial information pertaining to AMS as a component of discontinued operations in the condensed consolidated financial statements as of the second quarter of fiscal 2019. Prior to the discontinued operations classification, the AMS business was included in the AMS segment in the Company’s segment results.

The sale was completed on October 1, 2018. At the closing of the transaction, the Company received total consideration of $2.3 billion ($2.3 billion stated sales price less closing adjustments and transaction costs of $49.0 million). Additionally, the Company applied $230.5 million of proceeds from the sale to repay outstanding Company debt and interest. The Company reported a gain of $1.7 billion on the sale, which is included in earnings from discontinued operations, net of tax.  

Summary results of operations of AMS for the three and nine months ended December 31, 2018 and 2017, respectively, 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 endedFor the nine months ended
December 31,December 31,
2018201720182017
Revenues$— $175,750 $332,185 $512,734 
Cost of revenue24,677 91,394 213,512 272,356 
Gross profit(24,677)84,356 118,673 240,378 
Operating expenses:
Research and development6,703 9,007 21,621 26,144 
Sales and marketing18,110 25,898 60,743 74,384 
General and administrative27,767 9,957 72,150 26,926 
Gains, losses and other items, net(1,658,667)747 (1,656,014)1,479 
Total operating expenses(1,606,087)45,609 (1,501,500)128,933 
Income from discontinued operations1,581,410 38,747 1,620,173 111,445 
Interest expense— (2,566)(5,702)(7,432)
Other, net74 (13)97 (176)
Earnings from discontinued operations before income taxes1,581,484 36,168 1,614,568 103,837 
Income taxes509,823 15,761 456,301 34,986 
Earnings from discontinued operations, net of tax$1,071,661 $20,407 $1,158,267 $68,851 
Substantially all of the interest expense was allocated to discontinued operations.



The carrying amounts of the major classes of assets and liabilities of AMS are segregated and included in assets and liabilities held for sale in the condensed consolidated balance sheets. The following is a reconciliation of the assets and liabilities held for sale (dollars in thousands):
March 31, 2018
(Unaudited)
Cash and cash equivalents$2,261 
Trade accounts receivable, net115,141 
Other current assets20,972 
Property and equipment, net124,193 
Software, net21,014 
Goodwill392,356 
Purchased software licenses, net7,502 
Deferred income taxes1,522 
Other assets, net3,815 
Assets held for sale $688,776 
Trade accounts payable27,929 
Accrued payroll and related expenses28,725 
Other accrued expenses16,241 
Deferred revenue27,214 
Income taxes payable244 
Other liabilities3,707 
Liabilities held for sale$104,060 

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 costs related to the agreements are included in loss from operations in the condensed consolidated statements of operations. The related cash inflows and outflows and revenues and costs for the three months ended December 31, 2018 was (dollars in thousands): 

For the three months ended December 31, 2018
Cash inflows$9,417 
Cash outflows$521 
Revenues$11,832 
Costs$4,176 

The revenues include approximately $4.5 million incremental to amounts reported as LiveRamp revenues in previous periods.



5. STOCK-BASED COMPENSATION:
 
Share-basedStock-based Compensation Plans


The Company has stock option and equity compensation plans for which a total of 34.542.3 million shares of the Company’s common stock have been reserved for issuance since the inception of the plans. At June 30,December 31, 2018, there were a total of 5.112.3 million shares available for future grants under the plans.

During the quarter ended September 30, 2018, the Board voted to amend the Amended and Restated 2005 Equity Compensation Plan to increase the number of shares available under the plan from 32.9 million shares to 37.9 million shares, bringing the total number of shares reserved for issuance since inception of all plans from 37.3 million shares at June 30, 2018 to 42.3 million shares beginning in the quarter ended September 30, 2018. The amendment received shareholder approval at the September 20, 2018 annual shareholders' meeting.

Stock-based Compensation Expense
The Company's stock-based compensation activity for the nine months ended December 31, 2018, by award type, was (dollars in millions):
For the nine months ended
December 31,
20182017
Stock options $2.6 $4.0 
Performance stock options 0.2 0.9 
Restricted stock units 34.6 21.6 
Arbor acquisition consideration holdback 11.5 11.5 
Pacific Data Partners assumed performance plan 11.8 — 
Other non-employee stock-based compensation 0.9 0.9 
Total non-cash stock-based compensation included in the condensed consolidated statements of operations 61.6 38.9 
Less expense related to liability-based equity awards (10.8)— 
Stock-based compensation of discontinued operations 62.9 7.8 
Total non-cash stock-based compensation included in the condensed consolidated statement of equity $113.7 $46.7 

Stock Option Activity of Continuing Operations
Stock option activity for the threenine months ended June 30,December 31, 2018 was: 
Weighted-average 
Weighted-average remaining Aggregate 
Number of exercise price contractual term Intrinsic value 
shares per share (in years) (in thousands) 
Outstanding at March 31, 2018 2,456,184 $13.30 
Exercised (870,453)$11.22 $27,517 
Forfeited or canceled (25,591)$18.64 
Outstanding at December 31, 2018 1,560,140 $14.37 4.8$37,850 
Exercisable at December 31, 2018 1,378,721 $15.27 4.5$32,210 
      Weighted-average  
    Weighted-average remaining Aggregate
  Number of exercise price contractual term Intrinsic value
  shares per share (in years) (in thousands)
Outstanding at March 31, 2018 2,565,287
 $13.61
    
Exercised (125,437) $8.80
   $2,426
Forfeited or canceled (25,831) $14.25
    
Outstanding at June 30, 2018 2,414,019
 $13.86
 5.1 $38,910
Exercisable at June 30, 2018 2,169,170
 $14.58
 4.8 $33,397


The aggregate intrinsic value at period end represents the total pre-tax intrinsic value (the difference between Acxiom’sLiveRamp’s closing stock price on the last trading day of the period and the exercise price for each in-the-money option) that would have been received by the option holders had option holders exercised their options on June 30,December 31, 2018.  This amount changes based upon changes in the fair market value of Acxiom’sLiveRamp’s common stock.




A summary of stock options outstanding and exercisable as of June 30,December 31, 2018 was:
     Options outstanding Options exercisableOptions outstanding Options exercisable 
Range ofRange of   Weighted-average Weighted-average   Weighted-averageRange of Weighted-average Weighted-average Weighted-average 
exercise priceexercise price Options remaining exercise price Options exercise priceexercise price Options remaining exercise price Options exercise price 
per shareper share outstanding contractual life per share exercisable per shareper share outstanding contractual life per share exercisable per share 
$0.61
 — $9.99
 545,583
 5.2 years $1.62
 390,000
 $1.71
0.61 — $9.99 304,455 5.3 years$1.45 192,111 $1.46 
$10.00
 — $19.99
 1,176,361
 4.4 years $14.95
 1,092,595
 $14.74
10.00 — $19.99 732,241 3.9 years$14.78 662,833 $14.50 
$20.00
 — $24.99
 672,523
 6.2 years $21.30
 667,023
 $21.30
20.00 — $24.99 523,444 5.8 years$21.31 523,444 $21.31 
$25.00
 — $32.85
 19,552
 5.4 years $32.85
 19,552
 $32.85
     2,414,019
 5.1 years $13.86
 2,169,170
 $14.58
1,560,140 4.8 years$14.37 1,378,388 $15.27 
 
Total expense related to stock options for the three months ended June 30, 2018 and 2017 was approximately $1.0 million and $1.4 million, respectively. Future expense for these options is expected to be approximately $6.3$3.4 million in total over the next three years.


Performance Stock Option Unit Activity of Continuing Operations
Performance stock option unit activity for the threenine months ended June 30,December 31, 2018 was:
     Weighted-average  Weighted-average 
   Weighted-average remaining AggregateWeighted-average remaining Aggregate 
 Number exercise price contractual term intrinsic valueNumber exercise price contractual term intrinsic value 
 of shares per share (in years) (in thousands)of shares per share (in years) (in thousands) 
Outstanding at March 31, 2018 329,404
 $21.42
    Outstanding at March 31, 2018 322,823 $21.42 
Forfeited or canceled (186,538) $21.41
    Forfeited or canceled (187,885)$21.41 
Outstanding at June 30, 2018 142,866
 $21.43
 1.9
 $1,217
Exercisable at June 30, 2018 —
 $—
 —
 $—
Outstanding at December 31, 2018 Outstanding at December 31, 2018 134,938 $21.44 1.4$2,320 
Exercisable at December 31, 2018 Exercisable at December 31, 2018 — $— — $— 
 
Of the performance stock option units outstanding at March 31, 2018, 164,702161,412 reached maturity of the relevant performance period at March 31, 2018.  The units attained a 0% attainment level. As a result, they were cancelledcanceled in the current fiscal quarter.year.
 
Total expense related to performance stock option units for the three months ended June 30, 2018 and 2017 was $0.3 million and $0.5 million, respectively.  Future expense for these performance stock option units is expected to be approximately $1.1$0.6 million in total over the next three years.
 
Restricted Stock Unit Activity Related to Disposition of AMS

Performance-based Restricted Stock Unit Conversions
In conjunction with the disposition of AMS, together with the change-in-control guidelines of the Company's 2005 Equity Compensation Plan, the Company converted its outstanding TSR-based performance restricted stock units ("PSUs") to time-vesting restricted stock units ("RSUs"). On the conversion date, the performance period was truncated and attainment measured, resulting in conversion of the PSUs to RSUs at a 200% conversion rate. Each converted RSU held by an AMS associate was vested immediately. The remaining converted RSUs will cliff vest on the same date as the original PSU performance period maturity date.



Share activity related to these conversions was: 
Continuing OperationsDiscontinued OperationsTotal Continuing and Discontinued Operations
TSR-based performance restricted stock units converted to time-based restricted stock units, by fiscal year granted: Original Performance Maturity Date: 
Fiscal 2017 PSU 3/31/2019(168,939)(45,657)(214,596)
Fiscal 2018 PSU 3/31/2020(153,233)(32,545)(185,778)
Fiscal 2019 PSU 3/31/2021(186,539)(30,188)(216,727)
Totals (508,711)(108,390)(617,101)
Time-based restricted stock units converted from TSR-based performance restricted stock units RSU Cliff Vest Date (Continuing Ops Only): 
Fiscal 2017 PSU 3/31/2019337,878 91,314 429,192 
Fiscal 2018 PSU 3/31/2020306,466 65,090 371,556 
Fiscal 2019 PSU 3/31/2021373,078 60,376 433,454 
Totals 1,017,422 216,780 1,234,202 
The Company recognized both incremental and accelerated compensation costs in the condensed consolidated statement of operations related to the PSU conversions. The impact on compensation costs was (dollars in thousands):
Continuing OperationsDiscontinued OperationsTotal Continuing and Discontinued Operations
Incremental compensation costs $7,179 $1,599 $8,778 
Accelerated compensation costs of original grant date fair value related to immediate vesting of converted PSUs of AMS associates $— $1,607 $1,607 

AMS Restricted Stock Unit Accelerations
In conjunction with the disposition of AMS, the Company accelerated the vesting of substantially all outstanding time-vesting restricted stock units of AMS associates to the date of disposition, including converted PSU shares, resulting in the release of restricted stock units covering 1,187,344 shares of common stock. The Company recognized $54.0 million of compensation costs related to the accelerated vesting and release of these units which is included in net earnings from discontinued operations, net of tax in the condensed consolidated statement of operations. Of the $54.0 million compensation costs, $27.0 million represented incremental compensation cost and $27.0 million represented accelerated original grant date fair value compensation cost.

Restricted Stock Unit Activity
During the threenine months ended June 30,December 31, 2018, the Company granted time-vesting restricted stock units covering 1,703,4821,877,874 shares of common stock with a fair value at the date of grant of $46.6$63.2 million. Of the restricted stock units granted in the current period, 98,156197,115 vest in equal annual increments over four years, 1,586,7241,272,337 vest 25% at the one-year anniversary and 75% in equal quarterly increments over the subsequent three years, 330,415 vest 50% at the two-year anniversary and 18,60250% in equal annual increments over the subsequent two years, and 78,007 vest inover one year. Grant date fair value of these units is equal to the quoted market price for the shares on the date of grant. 
 


Time-vesting restricted stock unit activity for the threenine months ended June 30,December 31, 2018 was:
Weighted-average 
fair value per Weighted-average 
Number share at grant remaining contractual 
of shares date term (in years) 
Outstanding at March 31, 2018 2,702,497 $24.60 2.34
Granted 1,877,874 $33.66 
Vested (1,363,871)$24.60 
Forfeited or canceled (265,878)$25.39 
PSUs converted to RSUs in conjunction with AMS disposition 1,017,422 $21.21 
Outstanding at December 31, 2018 3,968,044 $27.97 2.37
    Weighted-average  
    fair value per  Weighted-average
  Number  share at grant remaining contractual
  of shares date term (in years)
Outstanding at March 31, 2018 3,449,001
 $24.35
 2.32
Granted 1,703,482
 $27.34
  
Vested (692,206) $23.14
  
Forfeited or canceled (227,978) $24.98
  
Outstanding at June 30, 2018 4,232,299
 $25.72
 2.82


The total fair value of time-vesting restricted stock units vested for the nine months ended December 31, 2018 was $54.4 million and is measured as the quoted market price of the Company's common stock on the vesting date for the number of shares vested.

During the threenine months ended June 30,December 31, 2018, the Company granted performance-based restricted stock units, in two separate plans, covering 216,727516,954 shares of common stock having a fair value at the date of grant of $6.7$21.1 million. Under the first performance plan, units covering 186,539 shares of common stock were granted having a fair value at the date of grant of $5.8 million, determined using a Monte Carlo simulation model.  The units vest subject to attainment of market conditions established by the compensation committee of the board of directors (“compensation committee”) and continuous employment through the vesting date.  The 216,727186,539 units may vest in a number of shares from 25% to 200% of the award, based on the total shareholder return of AcxiomLiveRamp common stock compared to total shareholder return of a group of peer companies established by the compensation committee for the period from April 1, 2018 to March 31, 2021. All of these awards were converted to RSUs at the time of the AMS disposition. Under the second performance plan, units covering 330,415 shares of common stock were granted having a fair value at the date of grant of $15.3 million equal to the quoted market price for the shares on the date of grant. The units vest subject to attainment of performance criteria established by the compensation committee of the board of directors. The units may vest in a number of shares from zero to 200% of the award, based on the attainment of revenue growth and margin targets.  



Non-vested performance-based restricted stock unit activity for the threenine months ended June 30,December 31, 2018 was:
Weighted-average 
fair value per Weighted-average 
Number share at grant remaining contractual 
of shares date term (in years) 
Outstanding at March 31, 2018 561,018 $25.68 2.53
Granted 516,954 $40.82 
Additional earned performance shares 176 $23.89 
Vested (61,330)$24.22 
Forfeited or canceled (129,501)$25.15 
PSUs converted to RSUs in conjunction with AMS disposition (508,711)$28.08 
Outstanding at December 31, 2018 378,606 $43.55 3.45
    Weighted-average  
    fair value per Weighted-average
  Number share at grant remaining contractual 
  of shares date term (in years)
Outstanding at March 31, 2018 682,763
 $25.23
 1.54
Granted 216,727
 $31.07
  
Vested (20,965) $19.07
  
Forfeited or canceled (129,123) $24.13
  
Outstanding at June 30, 2018 749,402
 $27.28
 1.78


Total expense related to restricted stock for the three months ended June 30, 2018 and 2017 was approximately $10.9 million and $8.8 million, respectively.  Future expense for restricted stock units is expected to be approximately $33.5$12.5 million for the ninethree months ending March 31, 2019, $35.9$42.5 million in fiscal 2020, $25.0$27.9 million in fiscal 2021, $13.6$15.6 million in fiscal 2022, and $1.4$4.2 million in fiscal 2023.




Other Performance Unit Activity
Other performance-based stock unit activity for the threenine months ended June 30,December 31, 2018 was: 
   Weighted-average   Weighted-average   
   fair value per Weighted-average fair value per Weighted-average 
 Number share at grant remaining contractual Number share at grant remaining contractual 
 of shares date term (in years) of shares date term (in years) 
Outstanding at March 31, 2018 111,111
 $5.33
 -Outstanding at March 31, 2018 111,111 $5.33 -
Vested (45,364) $5.33
 Vested (45,364)$5.33 
Forfeited or canceled (65,747) $5.33
  Forfeited or canceled (65,747)$5.33 
Outstanding at June 30, 2018 —
 $—
 -
Outstanding at December 31, 2018 Outstanding at December 31, 2018 — $— -
 
The 111,111 performance-based units outstanding at March 31, 2018 reached maturity of the relevant performance period on March 31, 2018. The units achieved a 100% performance attainment level. However, application of the share price adjustment factor resulted in a 59% reduction in shares vested in the current fiscal quarter.


During the quarternine months ended June 30,December 31, 2018, shares having a fair value of approximately $36.9 million were withheld from the Companyunits vested and exercised in the tables above. The withheld approximately $10.0 million related toshares represented the value of employee payroll tax withholding for taxable stock-based compensation awards. The $36.9 million fair value resulted in the return of 953,523 shares to treasury stock and is included in shares repurchased for tax withholding upon vesting of stock-based awards in the condensed consolidated statements of cash flows.


Stock-based Compensation Expense Related to Discontinued Operations
Total stock-based compensation expense related to discontinued operations for the nine months ended December 31, 2018 and 2017 was $62.9 million and $7.8 million, respectively and is included in non-cash stock-based compensation in the condensed consolidated statement of equity.

Consideration Holdback
As part of the Company’s acquisition of Arbor in fiscal 2017, $38.3 million of the acquisition consideration otherwise payable with respect to shares of restricted Arbor common stock held by certain key employees was subject to holdback by the Company pursuant to agreements with those employees (each, a “Holdback Agreement”). The Holdback Agreement specifies the payment of the consideration in monthly installments using LiveRamp shares over a thirty month period. Total expense related to the Holdback Agreements for the threenine months ended June 30,December 31, 2018 and 2017 was $3.8$11.5 million in each period.  Through June 30,December 31, 2018, the Company had recognized a total of $24.3$31.9 million expense related to the Holdback Agreements. Future expense related to the Holdback Agreements is expected to be approximately $14.0$6.4 million over the next two fiscal years.quarters.


Pacific Data Partners ("PDP") Assumed Performance Plan
In connection with the fiscal 2018 acquisition of PDP, the Company assumed the outstanding performance compensation plan under the 2018 Equity Compensation Plan of Pacific Data Partners, LLC ("PDP PSU plan"). Total expense related to the PDP PSU plan for the threenine months ended June 30,December 31, 2018 was $3.9$11.8 million. Through June 30,December 31, 2018, the Company hadhas recognized a total of $5.9$13.8 million related to the PDP PSU plan. Future expense is expected to be approximately $11.9$3.9 million in fiscal 2019, $15.7$15.8 million in fiscal 2020, $15.8 million in fiscal 2021, and $15.7 million in fiscal 2022, based on expectations of full attainment. At MarchDecember 31, 2018, the recognized, but unpaid, portion balance related to the PDP PSU plan in other accrued expenses in the condensed consolidated balance sheet was $5.3$12.4 million.





5.
6. OTHER CURRENT AND NONCURRENT ASSETS:
 
Other current assets consist of the following (dollars in thousands): 
December 31, 2018March 31, 2018
Prepaid expenses and other $13,660 $6,622 
Assets of non-qualified retirement plan 13,706 13,551 
Other current assets $27,366 $20,173 

  June 30, 2018 
March 31,
2018
Prepaid expenses and other $25,823
 $27,594
Assets of non-qualified retirement plan 14,344
 13,551
Other current assets $40,167
 $41,145

 
Other noncurrent assets consist of the following (dollars in thousands): 
 June 30, 2018 
March 31,
2018
December 31, 2018March 31, 2018
Acquired intangible assets, net $31,453
 $33,922
Acquired intangible assets, net $26,562 $33,922 
Deferred data acquisition costs 879
 1,036
Other miscellaneous noncurrent assets 8,626
 6,510
Other miscellaneous noncurrent assets 7,998 3,932 
Noncurrent assets $40,958
 $41,468
Other assets, net Other assets, net $34,560 $37,854 
  
6.7. OTHER ACCRUED EXPENSES:
 
Other accrued expenses consist of the following (dollars in thousands):
December 31, 2018March 31, 2018
Liabilities of non-qualified retirement plan 13,706 13,551 
Other miscellaneous accrued expenses 41,429 26,073 
Other accrued expenses $55,135 $39,624 

  June 30, 2018 
March 31,
2018
Liabilities of non-qualified retirement plan 14,344
 13,551
Other accrued expenses 44,594
 42,314
Other accrued expenses $58,938
 $55,865

7.8. GOODWILL AND INTANGIBLE ASSETS:

Goodwill by operating segment for the threenine months endedJune 30,December 31, 2018 (dollars in thousands) was as follows:
  LiveRamp Acxiom Marketing Solutions Total
Balance at March 31, 2018 $203,639
 $392,356
 $595,995
Reallocation of segments 1,377
 (1,377) —
Change in foreign currency translation adjustment (62) (138) (200)
Balance at June 30, 2018 $204,954
 $390,841
 $595,795
Total 
Balance at March 31, 2018 $203,639 
Reallocation from AMS 1,377 
Change in foreign currency translation adjustment (345)
Balance at December 31, 2018$204,671 
 
Goodwill by component included in each segmentgeography as of June 30,December 31, 2018 was: 
Total 
U.S. $201,449 
APAC 3,222 
Balance at December 31, 2018$204,671 


  LiveRamp Acxiom Marketing Solutions Total
U.S. $201,449
 $382,981
 $584,430
APAC 3,505
 7,860
 11,365
Balance at June 30, 2018 $204,954
 $390,841
 $595,795




The amounts allocated to intangible assets from acquisitions include developed technology, customer relationships, trade names, and publisher relationships.  Amortization lives for those intangibles range from two years to tensix years.  The following table shows the amortization activity of intangible assets (dollars in thousands):
 June 30, 2018 March 31, 2018December 31, 2018March 31, 2018 
Developed technology, gross (Software) $54,150
 $54,150
Developed technology, gross (Software) $54,000 $54,000 
Accumulated amortization (47,119) (43,533)Accumulated amortization (48,989)(43,383)
Net developed technology $7,031
 $10,617
Net developed technology $5,011 $10,617 
    
Customer relationship/Trade name, gross (Other assets, net) $43,346
 $43,364
Customer relationship/Trade name, gross (Other assets, net) $35,800 $35,800 
Accumulated amortization (29,421) (27,953)Accumulated amortization (24,774)(20,400)
Net customer/trade name $13,925
 $15,411
Net customer/trade name $11,026 $15,400 
    
Publisher relationship, gross (Other assets, net) $23,800
 $23,800
Publisher relationship, gross (Other assets, net) $23,800 $23,800 
Accumulated amortization (6,280) (5,289)Accumulated amortization (8,264)(5,289)
Net publisher relationship $17,520
 $18,511
Net publisher relationship $15,536 $18,511 
    
Total intangible assets, gross $121,296
 $121,314
Total intangible assets, gross $113,600 $113,600 
Total accumulated amortization (82,820) (76,775)Total accumulated amortization (82,027)(69,072)
Total intangible assets, net $38,476
 $44,539
Total intangible assets, net $31,573 $44,528 
 
Intangible assets by operating segment as of June 30, 2018 was (dollars in thousands):
  LiveRamp Acxiom Marketing Solutions Total
Developed technology 7,031
 —
 7,031
Customer/Trade name 13,921
 4
 13,925
Publisher relationship 17,520
 —
 17,520
Balance at June 30, 2018 $38,472
 $4
 $38,476
Total amortization expense related to intangible assets for the threenine months ended June 30,December 31, 2018 and 2017 was $6.1$13.0 million and $6.0$18.0 million, respectively.  The following table presents the estimated future amortization expenses related to purchased and other intangible assets. The amount for 2019 represents the remaining ninethree months ending March 31, 2019. All other periods represent fiscal years ending March 31 (dollars in thousands):

Fiscal Year: 
2019$2,981 
202011,925 
20218,083 
20225,150 
20233,434 
$31,573 

9. PROPERTY AND EQUIPMENT:

Property and equipment is summarized as follows (dollars in thousands):
December 31, 2018March 31, 2018 
Leasehold improvements16,920 15,635 
Data processing equipment35,727 39,938 
Office furniture and other equipment 6,135 6,780 
58,782 62,353 
Less accumulated depreciation and amortization34,195 30,013 
$24,587 $32,340 
Depreciation expense on property and equipment was $10.7 million and $8.9 million for the nine months ended December 31, 2018 and 2017, respectively. Depreciation expense for the nine months ended December 31, 2018


Fiscal Year:    
2019$9,917
202011,950
20218,025
20225,150
20233,434
 $38,476
included $2.0 million of accelerated depreciation expense resulting from adjusting the remaining lives of certain data processing equipment.


8.
10. LONG-TERM DEBT:
 
Long-term debt consists of the following (dollars in thousands): 
  June 30, 2018 
March 31,
2018
Revolving credit borrowings $230,000
 $230,000
Other debt 2,701
 3,293
Total long-term debt 232,701
 233,293
     
Less current installments 1,327
 1,583
Less deferred debt financing costs 3,939
 3,873
Long-term debt, excluding current installments and deferred debt financing costs $227,435
 $227,837
March 31, 2018
Revolving credit borrowings $230,000 
Other debt 3,293 
Total long-term debt 233,293 
Less current installments 1,583 
Less deferred debt financing costs 3,873 
Long-term debt, excluding current installments and deferred debt financing costs $227,837 
 
The revolving loan borrowings undersale of AMS was completed on October 1, 2018. At the Company's Sixth Amended and Restated Credit Agreement (the "restated credit agreement") bear interest at LIBOR or at an alternative base rate plus a credit spread. At June 30, 2018, the revolving loan borrowing bears interest at LIBOR plus a credit spread of 1.75%.  The weighted-average interest rate on revolving credit borrowings at June 30, 2018 was 3.9%.  There were no material outstanding letters of credit at June 30, 2018 or March 31, 2018.

Under the termsclosing of the restated credit agreement,transaction, the Company is requiredapplied $230.5 million of proceeds from the sale to maintain certain debt-to-cash flowrepay outstanding Company debt and interest coverage ratios, among other restrictions.  At June 30, 2018, the Company was in compliance with these covenants and restrictions. interest.


9.11. ALLOWANCE FOR DOUBTFUL ACCOUNTS:
 
Trade accounts receivable are presented net of allowances for doubtful accounts, returns and credits of $5.2$3.4 million at June 30,December 31, 2018 and $6.8$3.1 million at March 31, 2018.
 
10.     SEGMENT INFORMATION:
The Company reports segment information consistent with the way management internally disaggregates its operations to assess performance and to allocate resources.

During the first quarter of fiscal 2019, the Company realigned its portfolio into two distinct business segments: LiveRamp, the identity infrastructure for powering exceptional customer experiences, and Acxiom Marketing Solutions, the leading provider of services for creating a unified approach to data-driven marketing. This realignment allows Acxiom to best meet client needs in a rapidly evolving marketplace, create a strong foundation for continued growth and enhance value for shareholders.

This structure configured Acxiom’s three previous segments into two, aligning key Audience Solutions’ assets to each. All identity assets including IdentityLink, AbiliTec® intellectual property and Acxiom’s TV integrations were consolidated under LiveRamp. The remaining Audience Solutions’ lines of business for data and data services were combined with Marketing Services to create Acxiom Marketing Solutions.

As a result of this organizational realignment, information that our chief operating decision maker regularly reviews for purposes of allocating resources and assessing performance changed.

Revenues 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): 
  For the three months ended
  June 30,
  2018 2017
Revenues:     
LiveRamp $62,458
 $46,757
Acxiom Marketing Solutions 164,502
 165,757
Total segment revenues $226,960
 $212,514
     
Gross profit(1):
  
  
LiveRamp $44,200
 $28,229
Acxiom Marketing Solutions 73,174
 77,864
Total segment gross profit $117,374
 $106,093
     
Income (loss) from operations(1):
  
  
LiveRamp $9,203
 $(97)
Acxiom Marketing Solutions 47,458
 48,374
Total segment income from operations $56,661
 $48,277
(1) Gross profit and income 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, segment gross profit and income from operations do not include non-cash stock compensation expense and purchased intangible asset amortization.


The following table reconciles total segment gross profit to gross profit and total operating segment income from operations to income from operations (dollars in thousands): 
  For the three months ended
  June 30,
  2018 2017
Total segment gross profit $117,374
 $106,093
     
Less:    
Purchased intangible asset amortization 6,054
 5,966
Non-cash stock compensation 1,631
 1,573
Gross profit $109,689
 $98,554
     
Total segment income from operations $56,661
 $48,277
     
Less:    
Corporate expenses (principally general and administrative) 27,840
 25,966
Separation and transformation costs included in general and administrative 6,822
 7,119
Gains, losses and other items, net 1,286
 (98)
Purchased intangible asset amortization 6,054
 5,966
Non-cash stock compensation 20,360
 15,031
Loss from operations $(5,701) $(5,707)

11.12. RESTRUCTURING, IMPAIRMENT AND OTHER CHARGES:
 
The following table summarizes the restructuring activity for the threenine months ended June 30,December 31, 2018 (dollars in thousands): 
 Associate-related
reserves		 Lease
accruals		 TotalAssociate-related
reserves 		Lease
accruals 		Total 
March 31, 2018 $2,751
 $5,292
 $8,043
March 31, 2018 $541 $5,288 $5,829 
Restructuring charges and adjustments 1,286
 —
 1,286
Restructuring charges and adjustments 3,952 1,582 5,534 
Payments (2,923) (335) (3,258)Payments (1,363)(878)(2,241)
June 30, 2018 $1,114
 $4,957
 $6,071
December 31, 2018December 31, 2018$3,130 $5,992 $9,122 
 
The above balances are included in other accrued expenses and other liabilities on the condensed consolidated balance sheets.
 
Restructuring Plans
 
In the threenine months ended June 30,December 31, 2018, the Company recorded a total of $1.3$5.5 million in restructuring charges and adjustments included in gains, losses and other items, net in the condensed consolidated statement of operations. The expense related to fiscal year 20182019 expense included restructuring plans primarily for associates in the United States required to render service until termination to receiveand China of $3.9 million, lease accruals and adjustments of $0.8 million, and leasehold improvement write-offs of $0.8 million. Of the termination benefits. Theseassociate related accruals of $3.9 million, $2.8 million remained accrued at December 31, 2018. The associate-related costs are expected to be paid out in fiscal 2019.2019 and fiscal 2020.


In fiscal 2018, the Company recorded a total of $6.4$2.8 million in restructuring charges and adjustments included in gains, losses and other items, net in the condensed consolidated statement of operations. The expense included severance and other associate-related charges of $3.8$0.2 million, and lease accruals and adjustments of $2.6 million.

The associate-related accruals of $3.8$0.2 million related to the termination of associates in the United States and Europe. Of all amounts accrued for fiscal year 2018 associate-related plans, $0.7 million remained accrued as of June 30, 2018. These costs are expected to bewere paid out in fiscal 2019. The lease accruals and adjustments of $2.6 million result from the Company's exit from certain leased office facilities.


In fiscal 2017, the Company recorded a total of $8.9$6.5 million in restructuring charges and adjustments included in gains, losses and other items, net in the condensed consolidated statement of operations.  The expense included severance and other associate-related charges of $3.8 million,


lease accruals and adjustments of $3.0 million, and leasehold improvement write-offs of $2.1 million. Of the associate-related accruals of $3.8 million, $0.2 million remained accrued as of June 30, 2018. These costs are expected to be paid out in fiscal 2019. The lease accruals and adjustments of $3.0 million resulted from the Company's exit from certain leased office facilities ($1.5 million) and adjustments to estimates related to the fiscal 2015 lease accruals ($1.5 million). Of the amount accrued for fiscal 2017 lease accruals, $2.3 million remained accrued as of June 30, 2018.


In fiscal 2016,2015, the Company recorded a total of $12.0$9.2 million in restructuring charges and adjustments included in gains, losses and other items, net in the condensed consolidated statement of operations.  The expense included severance and other associate-related charges of $8.6 million, lease termination charges and accruals of $3.0 million, and leasehold improvement write-offs of $0.4 million. Of the associate-related accruals of $8.6 million, $0.1 million remained accrued as of June 30, 2018. These amounts are expected to be paid out in fiscal 2019.

In fiscal 2015, the Company recorded a total of $21.8 million in restructuring charges and adjustments included in gains, losses and other items, net in the condensed consolidated statement of operations.  The expense included severance and other associate-related charges of $13.3$2.6 million, lease accruals of $6.5$4.7 million, and the write-off of leasehold improvements of $2.0 million.  Of the associate-related accruals of $13.3$2.6 million, $0.3 million remained accrued as of June 30,December 31, 2018. These amounts are expected to be paid out in fiscal 2019. Of the lease accruals of $6.5 million, $0.3 million remained accrued as of June 30, 2018.


With respect to the fiscalfiscals 2015, 2017, 2018, and 20182019 lease accruals described above, the Company intends to sublease the facilities to the extent possible. The liabilities will be satisfied over the remainder of the leased properties' terms, which continue through November 2025. Of the total amount accrued, $6.0 million remained accrued as of December 31, 2018. Actual sublease receipts may differ from the estimates originally made by the Company. Any future changes in the estimates or in the actual sublease income could require future adjustments to the liabilities, which would impact net earnings (loss) in the period the adjustment is recorded.
 
Gains, Losses and Other Items
 
Gains, losses and other items for each of the periods presented are as follows (dollars in thousands): 
For the three months ended For the nine months ended 
December 31, December 31, 
2018201720182017
Restructuring plan charges and adjustments $5,043 $(765)$5,534 $2,066 
Other — (23)— (24)
$5,043 $(788)$5,534 $2,042 

  For the three months ended
  June 30,
  2018 2017
Restructuring plan charges and adjustments $1,286
 $(100)
Other —
 2
  $1,286
 $(98)

12.13.  COMMITMENTS AND CONTINGENCIES:
 
Legal Matters
 
The Company is involved in various claims and legal proceedings. Management routinely assesses the likelihood of adverse judgments or outcomes to these matters, as well as ranges of probable losses, to the extent losses are reasonably estimable. The Company records accruals for these matters to the extent that management concludes a loss is probable and the financial impact, should an adverse outcome occur, is reasonably estimable. These accruals are reflected in the Company’s condensed consolidated financial statements. In management’s opinion, the Company has made appropriate and adequate accruals for these matters, and management believes the probability of a material loss beyond the amounts accrued to be remote. However, the ultimate liability for these matters is uncertain, and if accruals are not adequate, an adverse outcome could have a material effect on the Company’s consolidated financial condition or results of operations. The Company maintains insurance coverage above certain limits. There are currently no matters pending against the Company or its subsidiaries for which the potential exposure is considered material to the Company’s condensed consolidated financial statements. 
 

Commitments
 
The Company leases data processing equipment, office furniturespace and equipment land and office space under noncancellable operating leases.  The Company has a future commitment for lease payments over the next 22 years7 years of $76.5$50.2 million.

In connection with the disposition of Acxiom Impact during fiscal 2017, the Company assigned a facility lease to the buyer of the business. The Company guaranteed the facility lease as required by the asset disposition agreement. Should the assignee default, the Company would be required to perform under the terms of the facility lease, which continues through September 2021. At June 30, 2018, the Company’s maximum potential future rent payments under this guarantee totaled $2.0 million.
13.14. INCOME TAX:


In determining the quarterly provision for income taxes, the Company makes its best estimate of the effective income tax rate expected to be applicable for the full fiscal year. The estimated effective income tax rate for the current fiscal year is impacted by the reduction in the U.S. federal corporate income tax rate (discussed below), non-deductible stock-based compensation, state income taxes, research tax credits, and losses in foreign jurisdictions.jurisdictions, and recording of a valuation allowance on deferred taxes. State income taxes are influenced by the geographic and legal entity mix of the Company's U.S. income as well as the diversity of rules among the states. The Company does not record a tax benefit for certain foreign losses due to uncertainty of future utilization.




On December 22, 2017, the U.S. enacted significant tax law changes following the passage of H.R. 1, "An Act to Provide for Reconciliation Pursuant to Titles II and V of the Concurrent Resolution on the Budget for Fiscal Year 2018 "the Tax Act") (previously known as "The Tax Cuts and Jobs Act"). The Tax Act reduced the U.S. federal corporate income tax rate from 35% to 21%, among other provisions. We believe we have properly estimated our federal and state income tax liabilities for the impacts of the Tax Act, including provisional amounts under SAB No. 118 related to the rate change, the impact of increased bonus depreciation, and the effects on executive compensation deductions. The Tax Act may be subject to technical amendments, as well as interpretations and implementing of regulations byDuring the Department of Treasury and Internal Revenue Service, any of which could increase or decrease one or more impactsthird quarter ended December 31, 2018, we finalized our analysis of the legislation. As such, we will continue to analyze the effectsimpact of the Tax Act and may record adjustments todid not change our provisional amounts during the measurement period ending no later than December 31, 2018. As of June 30, 2018, we have not changed the provisional estimates recognized in fiscal 2018.amounts. Any impacts to our income tax expense as a result of additional guidancefuture technical amendments, interpretations, or regulations issued by the Department of Treasury or Internal Revenue Service will be recorded in the period in which thesuch additional guidance is issued.




14.15. FAIR VALUE OF FINANCIAL INSTRUMENTS:
 
The following methods and assumptions were used to estimate the fair value of each class of financial instruments for which it is practicable to estimate that value.


Cash and cash equivalents, trade receivables, unbilled and notes receivable, short-term borrowings and trade payables - The carrying amount approximates fair value because of the short maturity of these instruments.

Long-term debt - The interest rate on the revolving credit agreement is adjusted for changes in market rates and therefore the carrying value approximates fair value. The estimated fair value of other long-term debt was determined based upon the present value of the expected cash flows considering expected maturities and using interest rates currently available to the Company for long-term borrowings with similar terms. At June 30, 2018, the estimated fair value of long-term debt approximates its carrying value.


Under applicable accounting standards financial assets and liabilities are classified in their entirety based on the lowest level of input that is significant to the fair value measurements. The Company assigned assets and liabilities to the hierarchy in the accounting standards, which is Level 1 - quoted prices in active markets for identical assets or liabilities, Level 2 - significant other observable inputs and Level 3 - significant unobservable inputs.
 
The following table presents the balances of assets measured at fair value as of June 30,December 31, 2018 (dollars in thousands): 
Level 1 Level 2 Level 3 Total 
Assets: 
Other current assets $13,706 $— $— $13,706 
Total assets $13,706 $— $— $13,706 

  Level 1 Level 2 Level 3 Total
Assets:        
Other current assets $14,344
 $—
 $—
 $14,344
Total assets $14,344
 $—
 $—
 $14,344





15.     SUBSEQUENT EVENT

On July 2, 2018, the Company entered into a definitive agreement to sell Acxiom Marketing Solutions ("AMS") to The Interpublic Group of Companies, Inc. (“IPG”) for $2.3 billion in cash, subject to customary closing adjustments. The transaction is subject to standard regulatory review, Acxiom shareholder approval and other customary closing conditions. In addition:

As required regulatory approvals are being sought and received, Acxiom intends to solicit shareholder approval for the transaction;
Once shareholder approval has been received, which is expected in the second quarter of fiscal 2019, the Company expects to report the results of AMS as discontinued operations;
The transaction is expected to close in the third quarter of fiscal 2019; and
The Company expects to report a gain on the sale.

The Company expects to realize approximately $1.7 billion in net cash proceeds, after taxes and fees. Following the closing, the Company intends to:

Retire its existing $230 million debt balance;
Initiate a $500 million cash tender offer for its common stock;
Increase its outstanding share repurchase authorization by up to an additional $500 million, and extend the duration of its program to December 31, 2020;
Use the remainder of the proceeds to fund its growth initiatives, strategic acquisition opportunities and meet its ongoing cash needs;
Transfer the Acxiom brand name and associated trademarks to IPG; and
Rename the Company LiveRamp Holdings, Inc. and, shortly thereafter, begin trading its common stock under the new ticker symbol “RAMP”.


Item 2.  Management’s Discussion and Analysis of Financial Condition and Results of Operations

We begin Management’s Discussion and Analysis of Financial Condition and Results of Operations with an overview of our operating segments, summary financial results and notable events. This overview is followed by a summary of our critical accounting policies and estimates that we believe are important to understanding the assumptions and judgments incorporated in our reported financial results. We then provide a more detailed analysis of our results of operations and financial condition.

Introduction and Overview


On September 20, 2018, we implemented a holding company reorganization, as a result of which Acxiom Holdings, Inc. became the successor issuer to Acxiom Corporation. On October 1, 2018, we changed our name to LiveRamp Holdings, Inc. ("LiveRamp"). References to "we", "us", "our" or the "Company" for events that occurred prior to September 20, 2018 refer to Acxiom Corporation and its subsidiaries; for events that occurred from September 20, 2018 to October 1, 2018, to Acxiom Holdings, Inc. and its subsidiaries; and after October 1, 2018, to LiveRamp Holdings, Inc. and its subsidiaries.

LiveRamp is a global technology and services company with a vision to transformpower a world where connected data into value for everyone. Through a simple, open approach to connecting systemsmakes every experience exceptional. LiveRamp provides the identity platform leveraged by brands and data, we provide the data foundation for the world’s best marketers. By making it safe and easy to activate, validate, enhance, and unify data, we provide marketers with the abilitytheir partners to deliver relevant messages at scale and tie those messages back to actual results. Ourinnovative products and servicesexceptional experiences. LiveRamp IdentityLink connects people, data, and applications across the digital and physical world to enable true people-based, marketing, allowing our clients to generate higher return on investment and drive better omnichannel customer experiences.marketing.

AcxiomLiveRamp is a Delaware corporation foundedheadquartered in 1969 in Conway, Arkansas.San Francisco, California. Our common stock is listed on the NASDAQ Global Select MarketNew York Stock Exchange under the symbol “ACXM.“RAMP.” We serve a global client base from locations in the United States, Europe, and the Asia-Pacific (“APAC”) region. Our direct client list includes many of the world’s largest and best-known brands across most major industry verticals, including but not limited to financial, insurance and investment services, retail, automotive, retail, telecommunications, high tech, consumer packaged goods, healthcare, travel, entertainment, non-profit, and government. Through our extensive reseller and partnership network, we serve thousands of additional companies, establishing LiveRamp as a foundational and neutral enabler of the customer experience economy.

Operating Segments


During the first quarter of fiscal 2019, the Company realigned its portfolio into two distinct business segments: LiveRamp, the identity infrastructure for powering exceptional customer experiences, and Acxiom Marketing Solutions ("AMS"), the leading provider of services for creating a unified approach to data-driven marketing. This realignment allows Acxiomallowed the Company to best meet client needs in a rapidly evolving marketplace, and to create a strong foundation for continued growth and enhance value for shareholders.


This structure configured Acxiom’sthe Company's three previous segments into two, aligning key Audience Solutions’ assets to each. All identity assets including IdentityLink, AbiliTec® intellectual property and Acxiom’sthe Company's TV integrations were consolidated under LiveRamp. The remaining Audience Solutions’ lines of business for data and data services were combined with Marketing Services to create Acxiom Marketing Solutions.AMS.


On July 2, 2018, the Company entered into a definitive agreement to sell its AMS business to The Interpublic Group of Companies, Inc. (“IPG”) for $2.3 billion in cash. As required regulatory approvals were being sought and received, the Company solicited and received shareholder approval for the transaction. Shareholder approval was received on September 20, 2018, and the Company began reporting the results of operations, cash flows, and the balance sheet amounts pertaining to AMS as a component of discontinued operations in the condensed consolidated financial statements as of the second quarter of fiscal 2019. Prior to the discontinued operations classification, the AMS business was included in the AMS segment in the Company’s segment results.

The sale was completed on October 1, 2018. At the closing of the transaction, the Company received total consideration of $2.3 billion ($2.3 billion stated sales price less closing adjustments, transaction costs and other items of $49.0 million). Additionally, the Company applied $230.5 million of proceeds from the sale to repay outstanding Company debt and interest. The Company reported a gain of $1.7 billion on the sale, which is included in earnings from discontinued operations, net of tax, in the condensed consolidated statements of operations. 

As a result of thisthe organizational realignment, and subsequent sale of AMS, we now operate as one operating segment. Operating segments are defined as components of an enterprise for which separate financial information thatis evaluated regularly by the chief operating decision maker. While we have offerings in multiple market segments, our chief operating decision maker regularly reviews for purposes of allocatingevaluates our financial information and resources and assessingassesses the performance changed.

Our operating segments provide management withof these resources on a comprehensive view of our key businesses based on how we manage our operations and measure results. Additional information related to our operating segments and geographic information is contained in Note 10 - Segment Information of the Notes to Condensed Consolidated Financial Statements.

LiveRamp
LiveRamp is the leading independent provider of identity and data connectivity for powering exceptional customer experiences. Through integrations with approximately 600 leading digital marketing platforms and data providers, we have become a key point of entry into the digital ecosystem, helping our clients eliminate data silos and unlock greater value from the marketing tools they use every day. We provide the foundational identity technology that enables our clients to engage consumers across any channel and measure the impact of marketing on sales. In addition,consolidated basis. Since we operate as one operating segment, all required financial segment information can be found in the condensed consolidated financial statements.



Sources of Revenues

LiveRamp recognizes revenue from the following sources: (i) subscription revenue, which consists of subscription fees from clients accessing our IdentityLink platform; and (ii) marketplace and other revenue, which primarily consists of revenue generated from data owners as well as certain publishers and addressable TV providers in the form of revenue-sharing arrangements. Our subscription pricing is tiered based on data volume supported by our platform. The majority of our subscription revenue is derived from subscriptions that are one year in duration and invoiced on a neutral, open platformmonthly basis, although some of our clients are entering into multi-year subscriptions that enables all parts of the marketing ecosystem to connect and use data in responsible, ethical ways at scale.are invoiced annually.


IdentityLink


IdentityLink™ is our category leading software-as-a-service (SaaS) identity resolution platform that connects people, data, and devices across the physical and digital world, powering privacy-compliant, people-based marketing that allows consumers to better connect with the brands and products they love. Leveraging the LiveRamp deterministic identity graph, IdentityLink first resolves a client’s data (first-, second-, or third-party) to consumer identifiers that represent real people in a way that protects consumer privacy. This omnichannel view of the consumer can then be delivered to any of the 600650 partners in our ecosystem through a process called "data onboarding" in order to support targeting, personalization and measurement use cases.

acxm-20181231_g1.jpg









TargetingPersonalizationMeasurement
acxm-20181231_g2.jpg

acxm-20181231_g3.jpg

acxm-20181231_g4.jpg
ExampleExampleExample
Clients can deploy targeted ads to known customers by using IdentityLink to upload data from first-, second-, and third-party data sources, resolve it to an omnichannel privacy-compliant link and then onboard to one of 600650 LiveRamp partners.Clients can deliver highly relevant content the moment viewers visit their website landing page, no login required. Leveraging IdentityLink, clients can resolve customer segment data to devices and digital IDs, onboard that data to a personalization platform and provide one-to-one experiences without compromising user privacy.Clients can connect exposure data with first- and third-party purchase data across channels by resolving all customer devices back to the customers to which they belong. Then, clients can onboard that data to a measurement platform to clearly establish cause, effect and impact.
 
Consumer privacy and data protection are at the center of how we design our products and services. Accordingly, IdentityLink operates in a SafeHaven® certified environment with technical, operational, and personnel controls designed to ensure our clients’ data is kept private and secure.


IdentityLink is sold to brands and the companies with which they partner to execute their marketing, including marketing technology providers, publishers and data providers.


•IdentityLink for Brands and Agencies. IdentityLink allows brands and their agencies to execute people-based marketing by creating an omnichannel view of the consumer and activating for use across their choice of best-of-breed digital marketing platforms.


•IdentityLink for Platforms and Publishers. IdentityLink provides marketing technology providers and digital publishers with the ability to offer people-based targeting, measurement and personalization within their platforms. This adds value for brands by increasing reach, as well as the speed at which they can activate their marketing data.


•IdentityLink for Data Owners. IdentityLink allows data owners to easily connect their data to the digital ecosystem and better monetize it. Data can be distributed directly to clients or made available through the IdentityLink Data Store feature. This adds value for brands as it allows them to augment their understanding of consumers, and increase both the extent of their reach to and depth of their understanding of customers and prospects.


We charge for IdentityLink on an annual subscription basis. Our subscription pricing is based primarily on data volume supported by our platform.





IdentityLink Data Store


As we have scaled the LiveRamp network and technology, we have found additional ways to leverage our platform, deliver more value to clients and create incremental revenue streams. Leveraging LiveRamp’s common identity system and broad integration network, the IdentityLink Data Store is a data marketplace that seamlessly connects data owners’ audience data across the marketing ecosystem. The IdentityLink Data Store allows data owners to easily monetize their data across hundreds of marketing platforms and publishers with a single contract. At the same time, the Data Store provides a single gateway where data buyers, including platforms and publishers, in addition to brands and their agencies, can access high-quality third-party data from more than 150 data owners, supporting all industries and encompassing all types of data. Data providers include sources and
brands exclusive to LiveRamp, emerging platforms with access to previously unavailable deterministic data, and data partnerships enabled by IdentityLink. LiveRamp thoroughly vets all data sources to ensure any data listed on the Data Store is privacy safe and sourced ethically.


We generate revenue from the IdentityLink Data Store through revenue-sharing arrangements with data owners that are monetizing their data assets on our marketplace. This revenue is typically transactional in nature, tied to data volume purchased on the Data Store.


LiveRamp Revenue Model

LiveRamp recognizes revenue from the following sources: (i) subscription revenue, which consists of subscription fees from clients accessing our IdentityLink platform; and (ii) marketplace and other revenue, which primarily consists of revenue generated from data owners as well as certain publishers and addressable TV providers in the form of revenue-sharing arrangements. Our subscription pricing is tiered based on data volume supported by our platform. The majority of our subscription revenue is derived from subscriptions that are one year in duration and invoiced on a monthly basis, although some of our clients are entering into multi-year subscriptions that are invoiced annually.

Acxiom Marketing Solutions ("AMS")

Our AMS segment designs, builds and manages the unified foundation of data and technology that helps clients grow revenue, win new customers, increase customer loyalty, and optimize marketing spend in a privacy-safe environment. We help architect the foundation for data-driven marketing by delivering solutions that integrate customer and prospect data across the enterprise, thereby enabling our clients to establish a single view of the customer. In addition, we help our clients validate the accuracy of their data, enhance it with additional insight, and keep it up to date, enabling brands to reach desired audiences with highly relevant messages. Leveraging our suite of data services, clients can identify, segment, and differentiate their audiences for more effective and targeted marketing. Finally, we support our clients in navigating the complexities of consumer privacy regulation, making it easy and safe for them to use innovative technology, maintain choice in channels and media, and stay agile in this competitive era of the consumer. Together, these solutions and services allow our clients to generate higher return on marketing investments and, at the same time, drive better, more relevant customer experiences.

The AMS segment includes the following service offerings: Data Management, Audience Creation and Data Analytics.

Data Management. Our Data Management offering provides solutions that unify consumer data across an enterprise within a Unified Data Layer - a data environment that enables clients to execute relevant, people-based marketing across channels and devices. Our consumer marketing solutions, which we design, build, and manage for our clients, make it possible for our clients to collect and analyze information from all sources, thereby increasing customer acquisition, retention, and loyalty. Through our growing partner network, clients are able to integrate their data with best-of-breed marketing applications while respecting and protecting consumer privacy. We provide the connective tissue across the martech and adtech systems our clients use to establish an integrated, omnichannel consumer data foundation that can power all forms of marketing - from email, direct mail, display and search, to social, mobile, and more. We deploy a flexible, open, and modular approach that enables our clients to easily expand their marketing stack over time.


Data Management services are generally provided under long-term contracts. Our revenue consists primarily of recurring monthly billings, and to a lesser extent, other volume and variable based billings.


Audience Creation. Our Audience Creation offering comprises global third-party data products and services, including InfoBase®, digital data and global data. With data on over 2.5 billion addressable consumers, InfoBase provides the most comprehensive, accurate, and descriptive consumer data in the market. Example InfoBase audience data elements:
inforbaseauddataelementsa.jpg
Clients can enhance their understanding of consumers and their preferences by appending InfoBase data to their own consumer profiles or purchase InfoBase data in list form for digital and offline customer acquisition. In addition, we sell our consumer data indirectly through more than 100 different digital publishers and martech platforms, including Google, OATH, Adobe and The Trade Desk, providing marketers with the ability to create and target specific audiences on those platforms. Our global data offerings are ethically sourced and developed using hundreds of data sources, each carefully evaluated, screened, and monitored for appropriate data collection and privacy policy practices including proper consumer notice and choice.

Our Audience Creation revenue includes licensing fees, which are typically in the form of recurring monthly billings, as well as transactional revenue based on volume or one-time usage. In addition, when our data is sold through indirect digital channels, we generate data revenue from certain digital publishers and martech platforms in the form of revenue sharing agreements.

Data Analytics. Our Data Analytics offering includes analytical and closed-loop measurement services that provide our clients with actionable insights to fuel people-based marketing across the full customer lifecycle. Our independent services help brands measure marketing ROI, attribute marketing impact, deepen audience insights, and predict likely consumer behavior.

Data Analytics revenue primarily consists of recurring monthly billings, as well as transactional revenue based on volume or one-time usage.

Summary

Together, our products and services form the “power grid” for data, the critical foundation for people-based marketing that brands need to engage consumers across today’s highly fragmented landscape of channels and devices. We provide industry-leading technology and services that power data-driven customer experiences in ways that are ethical, secure, and protect consumer privacy.


Summary Results and Notable Events
 
On July 2, 2018, the Company entered into a definitive agreement to sell its Acxiom Marketing Solutions business (“AMS”) to The Interpublic Group of Companies, Inc. (“IPG”) for $2.3 billion in cash. As required regulatory approvals were being sought and received, the Company solicited and received shareholder approval for the transaction. Shareholder approval was received on September 20, 2018, and the Company began reporting the results of operations, cash flows, and the balance sheet amounts pertaining to AMS as a component of discontinued operations in the condensed consolidated financial statements as of the second quarter of fiscal 2019. Prior to the discontinued operations classification, the AMS business was included in the AMS segment in the Company’s segment results.

The sale was completed on October 1, 2018. At the closing of the transaction, the Company received total consideration of $2.3 billion ($2.3 billion stated sales price less closing adjustments, transaction costs and other items of $49.0 million). Additionally, the Company applied $230.5 million of proceeds from the sale to repay outstanding Company debt and interest. The Company reported a gain of $1.7 billion on the sale, which is included in earnings from discontinued operations, net of tax.

On November 13, 2018, the Company commenced a Dutch auction tender offer to purchase up to $500 million in value of shares of its common stock . On December 13, 2018, the Company accepted for purchase 11,235,955 shares of its common stock at a price of $44.50 per share, for an aggregate cost of $503.4 million, including fees and expenses. These shares represented approximately 14.2% of the shares outstanding.

A financial summary of the quarter ended June 30,December 31, 2018 is presented below:
•Revenues were $227.0$80.0 million, a 6.8%35.4% increase from $212.5$59.1 million in the same quarter a year ago.
•Cost of revenue was $117.3$34.8 million, a 2.9%42.0% increase from $114.0$24.5 million in the same quarter a year ago.
•Gross margin increaseddecreased to 48.3%56.5% from 46.4%58.5% in the same quarter a year ago.
•Total operating expenses were $115.4$93.4 million, a 10.7%49.9% increase from $104.3$62.3 million in the same quarter a year ago.
•Cost of revenue and operating expenses for the quarters ended June 30,December 31, 2018 and 2017 include the following items:
◦Non-cash stock compensation of $20.4 million and $15.0 million, respectively (cost of revenue and operating expenses)
◦Purchased intangible asset amortization of $6.1 million and $6.0 million, respectively (cost of revenue)
◦Separation and transformation costs of $6.8 million and $7.1 million, respectively (operating expenses)
◦Non-cash stock compensation of $26.1 million and $13.3 million, respectively (cost of revenue and operating expenses)
◦Purchased intangible asset amortization of $3.4 million and $6.0 million, respectively (cost of revenue)
◦Separation and transformation costs of $0.7 million and $5.2 million, respectively (operating expenses)
◦Restructuring charges of $5.0 million and benefit of $0.8 million, respectively (gains, losses and other)
•Net loss from continuing operations was $3.0$15.3 million, or $0.04a loss of $0.20 per diluted share, compared to a net lossearnings of $1.3$2.5 million, or $0.02$0.03 per diluted share in the same quarter a year ago. The prior year quarter included a one-time benefit for the remeasurement of net deferred tax liabilities related to changes in the U.S. federal tax law.
•Net cash provided byused in operating activities of $17.2was $10.9 million a $12.2 million increase compared to $5.0net cash provided of $14.1 million in the same quarter a year ago.
The Company repurchased 1.9 million shares of its common stock for $45.8 million under the Company's common stock repurchase program.
This summary highlights financial results as well as other significant events and transactions of the Company during the quarter ended June 30,December 31, 2018.  However, this summary is not intended to be a full discussion of the Company’s results.  This summary should be read in conjunction with the following discussion of Results of


Operations and Capital Resources and Liquidity and with the Company’s condensed consolidated financial statements and footnotes accompanying this report.




Recent Developments

On July 2, 2018, the Company entered into a definitive agreement to sell AMS to The Interpublic Group of Companies, Inc. (“IPG”) for $2.3 billion in cash, subject to customary closing adjustments. The transaction is subject to standard regulatory review, Acxiom shareholder approval and other customary closing conditions. In addition:



As required regulatory approvals are being sought and received, Acxiom intends to solicit shareholder approval for the transaction;
Once shareholder approval has been received, which is expected in the second quarter of fiscal 2019, the Company expects to report the results of AMS as discontinued operations;
The transaction is expected to close in the third quarter of fiscal 2019; and
The Company expects to report a gain on the sale.

The Company expects to realize approximately $1.7 billion in net cash proceeds, after taxes and fees. Following the closing, the Company intends to:

Retire its existing $230 million debt balance;
Initiate a $500 million cash tender offer for its common stock;
Increase its outstanding share repurchase authorization by up to an additional $500 million, and extend the duration of its program to December 31, 2020;
Use the remainder of the proceeds to fund its growth initiatives, strategic acquisition opportunities and meet its ongoing cash needs;
Transfer the Acxiom brand name and associated trademarks to IPG; and
Rename the Company LiveRamp Holdings, Inc. and, shortly thereafter, begin trading its common stock under the new ticker symbol “RAMP”.


Results of Operations
 
A summary of selected financial information for each of the periods reported is presented below (dollars in thousands, except per share amounts):
 For the three months endedFor the three months ended For the nine months ended 
 June 30,December 31, December 31, 
     %% % 
 2018 2017     Change20182017Change 20182017Change 
Revenues $226,960
 $212,514
 7
Revenues $80,021 $59,121 35 $207,304 $159,891 30 
Cost of revenue 117,271
 113,960
 3
Cost of revenue 34,838 24,526 42 82,958 72,596 14 
Gross profit 109,689
 98,554
 11
Gross profit 45,183 34,595 31 124,346 87,295 42 
Total operating expenses 115,390
 104,261
 11
Total operating expenses 93,394 62,284 50 240,358 192,936 25 
Loss from operations (5,701) (5,707) —
Loss from operations (48,211)(27,689)74 (116,012)(105,641)10 
Net loss (3,015) (1,300) 132
Diluted loss per share $(0.04) $(0.02) 100
Net earnings Net earnings $1,056,400 $22,941 4,505 $1,074,008 $18,305 5,767 
Diluted earnings per share Diluted earnings per share $13.65 $0.03 4,771 $13.90 $0.23 5,898 
 
Revenues
The Company's revenues by reporting segment for each of the periods reported is presented below (dollars in thousands):
  For the three months ended
  June 30,
      %
Revenues 2018 2017    Change
  LiveRamp $62,458
 $46,757
 34
  Acxiom Marketing Solutions 164,502
 165,757
 (1)
    Total revenues $226,960
 $212,514
 7
For the three months ended For the nine months ended 
December 31, December 31, 
% % 
20182017Change 20182017Change 
Subscription$65,003 $45,789 42 $171,184 $125,157 37 
Marketplace and Other15,018 13,332 13 36,120 34,734 4 
Total revenues $80,021 $59,121 35 $207,304 $159,891 30 
 
Total revenues were $227.0 million, an increase of 6.8%, or $14.4 million, from $212.5 million in the same quarter a year ago. The impact of exchange rates was positive by approximately $1.3 million. Strong revenue growth in LiveRamp of $15.7 million was partially offset by a decline in AMS of $1.3 million. AMS was impacted by a decline of approximately $9 million from Facebook due to contract termination, offset partially by new logo wins and other volume and contract increases.

LiveRamp revenue for the quarter ended June 30,December 31, 2018 was $62.5$80.0 million, a $15.7$20.9 million, or 33.6%35.4%, increase compared to the same quarter a year ago. The increase was due to LiveRamp subscriptionSubscription growth of 38.4%$19.2 million, or 42.0%, primarily due to new logo deals and upsell to existing customers, and Marketplace and Other growth of $1.7 million, or 13.4%. Marketplace and Other revenue growth of 15.0% was negatively impacted by an approximately $2 million decrease in revenue from thea revenue-sharing arrangements duearrangement related to a lost customer. On a geographic basis, U.S. LiveRamp revenue increased $14.1$21.2 million, or 33.5%40.2%, from the same quarter a year ago. International LiveRamp revenue increased $1.6decreased $0.2 million, or 34.4%.

AMS revenue for the quarter ended June 30, 2018 was $164.5 million, a $1.3 million, or 0.8%3.8%, decrease compared tofrom the same quarter a year ago. Again, International revenue was negatively impacted by the lost customer.

Total revenue for the nine months ended December 31, 2018 was $207.3 million, a $47.4 million, or 29.7%, increase compared to the same period a year ago. The increase was due to Subscription growth of $46.0 million, or 36.8%, primarily due to new logo deals and upsell to existing customers, and Marketplace and Other growth of $1.4 million, or 4.0%. Marketplace and Other revenue growth was negatively impacted from a revenue-sharing arrangement related to a lost customer. On a geographic basis, U.S. AMS revenue decreased $1.8increased $46.1 million, or 1.2%32.0%, due to Facebook reductions, offset partially by new logo wins and other volume and contract increases.from the same period a year ago. International AMS revenue increased $0.6$1.4 million, or 4.2%. Excluding8.5%, from the favorable impact of exchange rates ($1.0 million), International AMS revenue decreased $0.4 million. By lines of business, Data Management revenue increased $4.4 million, Audience Creation revenue decreased $5.9 million and Data Analytics revenue increased $0.2 million.same period a year ago.


Cost of revenue and Gross profit
The Company’s cost of revenue and gross profit for each of the periods reported is presented below (dollars in thousands):
For the three months ended For the nine months ended 
December 31, December 31, 
% % 
20182017Change 20182017Change 
Cost of revenue $34,838 $24,526 (1)$82,958 $72,596 14 
Gross profit $45,183 $34,595 31 $124,346 $87,295 42 
Gross margin % 56.5 %58.5 %(4)60.0 %54.6 %10 

  For the three months ended
  June 30,
      %
  2018 2017 Change
Cost of revenue $117,271
 $113,960
 (1)
Gross profit $109,689
 $98,554
 11
Gross margin % 48.3% 46.4% 4

 
Cost of revenue: Includes all direct costs of sales such as dataincluding Identity Graph costs, cloud and other third-partyhosting costs, directly associated with revenue. Cost of revenue also includes expenses for each of the Company’s operations functions including client services, account management, agency, strategy and analytics, IT data acquisition,security and product operations.operations functions. Finally, cost of revenue includes amortization of internally developed software and other acquisition related intangibles.
 
Cost of revenue was $117.3$34.8 million for the quarter ended June 30,December 31, 2018, a $3.3$10.3 million, or 2.9%42.0%, increase from the same quarter a year ago. Gross margins decreased to 56.5% compared to 58.5% in the same quarter of the prior year. The gross margin decrease is due primarily to increased Identity Graph data and security costs, as well as accelerated depreciation, and costs associated with the Company's migration to a new cloud based IT infrastructure. U.S. gross margins decreased to 57.6% in the current year from 61.2% in the prior year. International gross margins increased to 48.3%42.4% from 36.7%.

Cost of revenue was $83.0 million for the nine months ended December 31, 2018, a $10.4 million, or 14.3%, increase from the same period a year ago. Gross margins increased to 60.0% compared to 46.4%54.6% in the prior year. The gross margin increase is due primarily to the LiveRamp revenue increases and cost efficiencies.increase. U.S. gross margins increased to 49.6%62.0% in the current year from 47.7%57.1% in the prior year again due to the LiveRamp revenue growth and cost efficiencies.growth. International gross margins increased to 35.4%37.4% from 31.9%32.0%.


Operating Expenses
The Company’s operating expenses for each of the periods reported is presented below (dollars in thousands):

 For the three months endedFor the three months ended For the nine months ended 
 June 30,December 31, December 31, 
     %% % 
Operating expenses 2018 2017 ChangeOperating expenses 20182017Change 20182017Change 
Research and development $24,536
 $23,563
 4
Research and development $20,469 $14,311 43 54,379 44,750 22 
Sales and marketing 54,850
 48,440
 13
Sales and marketing 40,054 27,832 44 109,317 77,904 40 
General and administrative 34,718
 32,356
 7
General and administrative 27,828 20,929 33 71,128 68,240 4 
Gains, losses and other items, net 1,286
 (98) (1,412)Gains, losses and other items, net 5,043 (788)(740)5,534 2,042 171 
Total operating expenses $115,390
 $104,261
 11
Total operating expenses $93,394 $62,284 50 240,358 192,936 25 
      
 
Research and development (“R&D”): Includes operating expenses for the Company’s engineering and product/project management functions supporting research, new development, and related product enhancement.
 
R&D expenses were $24.5$20.5 million for the quarter ended June 30,December 31, 2018, an increase of $1.0$6.2 million, or 4.1%43.0%, compared to the same quarter a year ago, and are 10.8%25.6% of total revenues compared to 11.1%24.2% in the same quarter of the prior year. The increase is due to an increase in non-cash stock compensation of $2.7 million, and ongoing investment in LiveRamp products.

R&D expenses were $54.4 million for the nine months ended December 31, 2018, an increase of $9.6 million, or 21.5%, compared to the same period a year ago, and are 26.2% of total revenues compared to 28.0% in the prior year. The increase is due primarily to an increase in non-cash stock-based compensation of $3.5 million, and ongoing investment in LiveRamp investments of $1.8 million.products.


Sales and marketing (“S&M”): Includes operating expenses for the Company’s sales, marketing, and product marketing functions.
 
S&M expenses were $54.9$40.1 million for the quarter ended June 30,December 31, 2018, an increase of $6.4$12.2 million, or 13.2%43.9%, compared to the same quarter a year ago, and are 24.2%50.1% of total revenues compared to 22.8%47.1% in the same quarter of the prior year. The increase is due to primarily to LiveRamp investments of $9.6 million, which includes an increase in non-cash stockstock-based compensation of $4.7 million.$3.2 million, primarily related to the PDP acquisition, other incentive-based compensation, and headcount to support revenue growth initiatives.
S&M expenses were $109.3 million for the nine months ended December 31, 2018, an increase of $31.4 million, or 40.3%, compared to the same period a year ago, and are 52.7% of total revenues compared to 48.7% in the prior


year. The increase is due to an increase in non-cash stockstock-based compensation was dueof $11.8 million, primarily related to the PDP acquisition.acquisition, other incentive-based compensation, and headcount to support revenue growth initiatives.


General and administrative (G&A): Represents operating expenses for all corporate functions, includingthe Company's finance, human resources, legal, corporate IT, and the corporate office.administrative functions.
 
G&A expenses were $34.7$27.8 million for the quarter ended June 30,December 31, 2018, an increase of $2.4$6.9 million, or 7.3%33.0%, compared to the same quarter a year ago, and are 15.3%34.8% of total revenues compared to 14.2%35.4% in the same quarter of the prior year. Current quarter expenses included $0.7 million of expenses related to business separation costs compared to $5.2 million in the same quarter of the prior year. The prior year costs were primarily related to AMS separation planning and readiness activities. Additionally, G&A expenses included $9.6 million of non-cash stock-based compensation compared to $3.2 million in the same quarter of the prior year. The current period increase is due to PSU conversions to RSUs at 200% on the date of the AMS disposition, new LiveRamp leadership equity grants in the quarter, and award modifications (vesting terms modified to end of transition term) for transition associates. The remaining increase in G&A expenses is primarily headcount related to support business growth.


G&A expenses were $71.1 million for the nine months ended December 31, 2018, an increase of $2.9 million, or 4.2%, compared to the same period a year ago, and are 34.3% of total revenues compared to 42.7% in the prior year. Current period expenses included $2.8 million of expenses related to business separation costs compared to $17.8 million in the prior year. The prior year costs were primarily related to separation planning and readiness activities. Additionally, G&A expenses included $15.7 million of non-cash stock-based compensation compared to $8.9 million in the prior year. The current period increase is due to PSU conversions to RSUs at 200% on the date of the AMS disposition, new LiveRamp leadership equity grants, and award modifications for transition associates. The remaining increase in G&A expenses is primarily headcount related to support business growth.

Gains, losses, and other items, net: Represents restructuring costs and other adjustments.


Gains, losses and other items, net of $1.3$5.0 million for the quarter ended June 30,December 31, 2018 increased $1.4$5.8 million compared to the same quarter a year ago from workforce reduction relatedago. The current quarter included restructuring charges (primarily severance costs.and lease reserves).  Gains, losses and other items, net of $5.5 million for the nine months ended December 31, 2018 increased $3.5 million compared to the same period a year ago.


Loss from Operations and Operating Margin
The Company’s loss from operations, as well as operating margin by segment, for each of the periods reported is presented below (dollars in thousands):
  For the three months ended
  June 30,
  2018 2017
Operating income (loss) and margin:    
LiveRamp $9,203
 $(97)
  

 

Acxiom Marketing Solutions 47,458
 48,374
  

 

Less:  
  
  Corporate expenses 27,840
 25,967
  Purchased intangible asset amortization 6,054
 5,966
  Non-cash stock compensation 20,360
 15,031
  Separation and transformation costs 6,822
 7,119
  Gains, losses and other items, net 1,286
 (98)
Loss from operations $(5,701) $(5,707)
Total operating margin (2.8)% (2.7)%

Loss from operations was $5.7$48.2 million for the quarter ended June 30,December 31, 2018 compared to $5.7$27.7 million for the same quarter a year ago. Operating margin was a negative 2.8%60.2% compared to a negative 2.7%46.8%.


LiveRamp incomeLoss from operations was $9.2$116.0 million a 14.7% margin, for the quarternine months ended June 30,December 31, 2018 compared to loss from operations of $0.1$105.6 million a negative 0.2% margin, for the same quarterperiod a year ago. A $16.0 million increase in gross profitOperating margin was partially offset by R&D and S&M investments.

AMS income from operations was $47.5 million, a 28.8% margin, for the quarter ended June 30, 2018negative 56.0% compared to $48.4 million, a 29.2% margin, for the same quarter a year ago. U.S. margins decreased to 30.7% in the current quarter from 31.3% due to the decrease in Audience Creation revenue. International operating margins increased to 9.5% from 6.0% due to the revenue increase.negative 66.1%.


Corporate expenses were $27.8Other Income and Income Taxes

Other income was $10.4 million for the quarter ended June 30,December 31, 2018 compared to $26.0 million for the same quarter a year ago, and are 12.3% of total revenues compared to 12.2% in the prior year.

Other Expense, Income Taxes and Other Items
Interest expense was $2.8 million for the quarter ended June 30, 2018 compared to $2.3 million for the same quarter a year ago. The increase is primarily related to an increase in the average rate of approximately 60 basis points.

Other income was $0.5 million for the quarter ended June 30, 2018 compared to other expense of $0.7$0.4 million for the same quarter a year ago. Other income and expensewas $10.5 million for the nine months ended December 31, 2018 compared to $0.1 million for the same period a year ago. Other income primarily consists of interest income and foreign currency transaction gains and losses in each period reported. The prior year quarter includes $0.7 million expense for accelerated deferred debt costs related to invested cash proceeds from the debt refinancing.sale of AMS.

Income tax benefit was $5.0$22.5 million on pretax loss of $8.0$37.8 million for the quarter ended June 30,December 31, 2018 compared to income tax benefit of $7.4$29.8 million on pretax loss of $8.7$27.3 million for the same quarter last year. The effective tax rates for both periods were impacted by non-deductible stock-based compensation related to the Arbor and Circulate acquisitions. InDuring the quarter ended June 30,December 31, 2018, the Company recognized a discrete tax benefit of $1.3$1.8 million related to net excess tax benefits from stock-based compensation compared to $1.5$0.1 million discrete tax charge related to shortfalls for the same quarter last year. 

Income tax benefit was $21.3 million on pretax loss of $105.5 million for the nine months ended December 31, 2018 compared to income tax benefit of $55.0 million on pretax loss of $105.5 million for the same period last year. The quartereffective tax rates for both periods were impacted by non-deductible stock-based compensation related to the Arbor and Circulate acquisitions. In the nine months ended June 30,December 31, 2018, wasthe Company recognized a discrete tax


expense of $4.2 million in connection with establishing a valuation allowance against its deferred tax assets. During the nine months ended December 31, 2018, the Company recognized a discrete tax benefit of $3.6 million related to net excess tax benefits from stock-based compensation compared to $1.3 million for the same period last year.

The three and nine month periods ended December 31, 2018 were also impacted by the Tax Act's permanent reduction in the U.S. federal corporate income tax rate. In addition, the three and nine month periods ended December 31, 2017 included a $24.2 million one-time tax benefit for the remeasurement of net deferred tax liabilities. We remeasured our deferred taxes to reflect the reduced Federal tax rate that will apply when these deferred taxes are settled or realized in future periods.  


Discontinued Operations

Summary results of operations of AMS are segregated and included in earnings from discontinued operations, net of tax, in the Company's condensed consolidated statements of operations for the periods presented below (dollars in thousands):
For the three months endedFor the nine months ended
December 31,December 31,
2018201720182017
Revenues$— $175,750 $332,185 $512,734 
Cost of revenue24,677 91,394 213,512 272,356 
Gross profit(24,677)84,356 118,673 240,378 
Operating expenses:
Research and development6,703 9,007 21,621 26,144 
Sales and marketing18,110 25,898 60,743 74,384 
General and administrative27,767 9,957 72,150 26,926 
Gains, losses and other items, net(1,658,667)747 (1,656,014)1,479 
Total operating expenses(1,606,087)45,609 (1,501,500)128,933 
Income from discontinued operations1,581,410 38,747 1,620,173 111,445 
Interest expense— (2,566)(5,702)(7,432)
Other, net74 (13)97 (176)
Earnings from discontinued operations before income taxes1,581,484 36,168 1,614,568 103,837 
Income taxes509,823 15,761 456,301 34,986 
Earnings from discontinued operations, net of tax$1,071,661 $20,407 $1,158,267 $68,851 




Capital Resources and Liquidity
 
Working Capital and Cash Flow
Working capital at June 30,December 31, 2018 totaled $149.3$1.105 billion, a $961.3 million a $32.7 million decreaseincrease when compared to $182.0$144.0 million at March 31, 2018, due primarily to the repurchasenet cash received in the sale of 1.9 million shares of common stockAMS. Current assets and current liabilities held for $45.8 million.sale at March 31, 2018 are excluded from working capital.


The Company’s cash is primarily located in the United States.  Approximately $22.4$7.5 million of the total cash balance of $95.1 million,$1.547 billion, or approximately 23.6%0.5%, is located outside of the United States.  The Company has no current plans to repatriate this cash to the United States.
 
Accounts receivable days sales outstanding was 6683 days at June 30,December 31, 2018 compared to 6178 days at March 31, 2018, and is calculated as follows (dollars in thousands):
 June 30, 2018 March 31, 2018December 31, 2018March 31, 2018 
Numerator – trade accounts receivable, net $163,767
 $167,188
Numerator – trade accounts receivable, net $71,906 $52,047 
Denominator:  
  
Denominator:
Quarter revenue 226,960
 244,781
Quarter revenue 80,021 60,210 
Number of days in quarter 91
 90
Number of days in quarter 92 90 
Average daily revenue $2,494
 $2,720
Average daily revenue $870 $669 
Days sales outstanding 66
 61
Days sales outstanding 83 78 
 
Net cash provided byused in operating activities was $17.2$40.3 million for the threenine months ended June 30,December 31, 2018, compared to $5.0$4.8 million in the same period a year ago.  The $12.2$35.6 million increasedecrease resulted primarily from favorableunfavorable changes in working capital.    
 
Investing activities used cash of $10.7$7.8 million during the threenine months ended June 30,December 31, 2018 compared to $10.5 million in the same period a year ago. Investing activities consisted primarily of capital expenditures ($4.4 million compared to $6.9 million in the prior period), capitalization of software ($3.6 million compared to $3.4 million in the prior period), and $2.5 million in the current year for a long-term investment.
Financing activities used cash of $52.6 million during the three months ended June 30, 2018 compared to $2.1$4.0 million in the same period a year ago. The current year over year change is primarily due to the collection of the $4.0 million note receivable from the Impact sale in the prior year. Investing activities also included capital expenditures of $4.0 million ($5.2 million in the prior year), capitalization of software of $1.3 million ($1.7 million in the prior year), and payments for investments of $2.5 million ($1.0 million in the prior year).  
Financing activities used cash of $820.6 million during the nine months ended December 31, 2018 compared to $35.1 million in the same period a year ago. The year over year change is primarily due to the payoff of the revolver debt of $230.0 million, and the acquisition of treasury shares from the tender offer of $503.4 million (11.2 million shares). The prior period included the debt refinancing which consisted of the payment of the prior debt of $226.2 million plus the fees related to the debt refinancing of $4.0 million offset by the proceeds from the new debt of $230.0 million. Financing activities also included the acquisition of treasury stock purchasespursuant to the board of $45.8directors' approved stock repurchase plan of $64.1 million (1.9(2.3 million shares of the Company's common stock pursuant to the board of directors' approved stock repurchase plan). The compared to $39.4 million in the prior year, consisted primarilyand sale of proceeds from the debt refinancingcommon stock, net of $230.0stock acquired for withholding taxes of $19.5 million which were used to pay off the outstanding $225 million term and revolving loan balances, with interest, along with $4.0(net cash provided of $5.1 million in fees relatedthe prior year).   

Net cash provided by discontinued operations was $2.3 billion in the current period compared to $50.6 million in the prior year. The increase is due to the restated credit agreement.net cash received in the sale of AMS.



On August 29, 2011, the board of directors adopted a common stock repurchase program.  That program was subsequently modified and expanded, most recently on March 30,October 25, 2018 (see Note 3 - Earnings Per Share).  On that date, the board of directors authorized a $500 million increase to the existing common stock repurchase program. Under the modified common stock repurchase program, the Company may purchase up to $500.0 million$1.0 billion of its common stock through the period ending December 31, 2019. 2020.

During the threenine months ended June 30,December 31, 2018, the Company repurchased 1.92.3 million shares of its common stock for $45.8 million.$64.1 million under the stock repurchase program.  Through June 30,December 31, 2018, the Company had repurchased a total of 22.022.4 million shares of its stock for $420.4 million, leaving remaining capacity of $79.6$438.7 million under the stock repurchase program.program, leaving remaining capacity of $561.3 million.




On October 25, 2018, the board of directors authorized a Dutch auction tender offer to purchase shares of its outstanding common stock at an initial aggregate purchase price not to exceed $500 million, plus up to 2% of the Company's outstanding shares of common stock in accordance with the rules and regulations of the SEC. On December 13, 2018, the Company accepted for purchase 11,235,955 shares of its common stock at a price of $44.50 per share, for an aggregate cost of $503.4 million, including fees and expenses. These shares represented approximately 14.2% of the shares outstanding.

Credit and Debt Facilities
See Note 8 “Long-Term Debt” of the Notes to Condensed Consolidated Financial Statements for further details related to the Company’s amended and restated credit agreement.

Based on our current expectations, we believe our liquidity and capital resources will be sufficient to operate our business. However, we may take advantage of opportunities to generate additional liquidity or refinance existing debt through capital market transactions. The amount, nature, and timing of any capital market transactions will depend on our operating performance and other circumstances; our then-current commitments and obligations; the amount, nature, and timing of our capital requirements; any limitations imposed by our current credit arrangements; and overall market conditions.


Off-Balance Sheet Items and Commitments
 
In connection with the August 2016 disposition of Acxiom Impact, the Company assigned a facility lease to the buyer of the business. The Company guaranteed the facility lease as required by the asset disposition agreement. Should the assignee default, the Company would be required to perform under the terms of the facility lease, which continues through September 2021. At June 30, 2018, the Company's maximum potential future rent payments subject to this guarantee totaled $2.0 million.
There were no material outstanding letters of credit at June 30, 2018 or March 31, 2018.
Contractual Commitments
The following table presents the Company’s contractual cash obligations, exclusive of interest, and purchase commitments at June 30,December 31, 2018.  The table does not include the future payment of liabilities related to uncertain tax positions of $2.2$17.5 million as the Company is not able to predict the periods in which the payments will be made. The amounts for 2019 represent the remaining ninethree months ending March 31, 2019.  All other periods represent fiscal years ending March 31 (dollars in thousands). 
For the years ending March 31, 
20192020202120222023Thereafter Total 
Operating leases $3,077 $12,024 $11,264 $10,913 $5,159 $7,767 $50,204 
  For the years ending March 31, 
  2019 2020 2021 2022 2023 Thereafter Total
Term loan $—
 $—
 $—
 $—
 $230,000
 $—
 $230,000
Other debt 991
 1,362
 348
 —
 —
 —
 2,701
Total long-term debt 991
 1,362
 348
 —
 230,000
 —
 232,701
Operating leases 12,482
 16,063
 15,464
 14,539
 8,099
 9,836
 76,483
Total contractual cash obligations $13,473
 $17,425
 $15,812
 $14,539
 $238,099
 $9,836
 $309,184

  For the years ending March 31, 
 
2019
2020
2021
2022
2023
Thereafter
Total
Total purchase commitments
$33,891

$18,226

$9,298

$1,539

$338

$—

$63,292
For the years ending March 31, 
20192020202120222023Thereafter Total 
Purchase commitments $6,999 $12,892 $9,861 $4,073 $3,212 $1,575 $38,612 
 
Purchase commitments primarily include contractual commitments for the purchase of data and open purchase orders for equipment, paper, office supplies, construction and other items.  Purchase commitments in some cases will be satisfied by entering into future operating leases, capital leases, or other financing arrangements, rather than payment of cash.  The above commitments relating to long-term obligations do not include future payments of interest.  The Company estimates future interest payments on debt for the remainder of fiscal 2019 of $9.2 million.data.


The following are contingencies or guarantees under which the Company could be required, in certain circumstances, to make cash payments as of June 30, 2018 (dollars in thousands):
Lease guarantees$1,972
Surety bonds$405

While the Company does not have any other material contractual commitments for capital expenditures, certain levels of investments in facilities and computer equipment continue to be necessary to support the growth of the business.  In some cases, the Company also licenses software and sells hardware to clients.  Management believes that the Company’s existing available debt and cash flow from operations will be sufficient to meet the Company’s working capital and capital expenditure requirements for the foreseeable future.  The Company also evaluates acquisitions from time to time, which may require up-front payments of cash. 

For a description of certain risks that could have an impact on results of operations or financial condition, including liquidity and capital resources, see “Risk Factors” contained in Part I, Item 1A, of the Company’s 2018 Annual Report.



Non-U.S. Operations
 
The Company has a presence in the United Kingdom, France, Germany, Poland, Australia, China, Singapore and China.Japan. Most of the Company’s exposure to exchange rate fluctuation is due to translation gains and losses as there are no material transactions that cause exchange rate impact. In general, each of the foreign locations is expected to fund its own operations and cash flows, although funds may be loaned or invested from the U.S. to the foreign subsidiaries subject to limitations in the Company’s revolving credit facility.subsidiaries. These advances are considered long-term investments, and any gain or loss resulting from changes in exchange rates as well as gains or losses resulting from translating the foreign financial statements into U.S. dollars are included in accumulated other comprehensive income. Exchange rate movements of foreign currencies may have an impact on the Company’s future costs or on future cash flows from foreign investments. The Company has not entered into any foreign currency forward exchange contracts or other derivative instruments to hedge the effects of adverse fluctuations in foreign currency exchange rates.   
 
Critical Accounting Policies
 
We prepare our condensed consolidated financial statements in conformity with U.S. GAAP as set forth in the FASB ASC and we consider the various staff accounting bulletins and other applicable guidance issued by the SEC. These accounting principles require management to make certain judgments and assumptions that affect the reported amounts of assets and liabilities and the disclosure of contingent assets and liabilities as of the date of the financial statements and the reported amounts of revenues and expenses during the reporting periods. The consolidated financial statements in the Company’s 2018 Annual Report include a summary of significant accounting policies used in the preparation of Acxiom’sthe Company’s consolidated financial statements.  In addition, the Management’s Discussion and Analysis filed as part of the 2018 Annual Report contains a discussion of the policies that management has identified as the most critical because they require management’s use of complex and/or significant judgments.  None of the Company’s critical accounting policies have materially changed since the date of the last annual report.report other than as described in the Accounting Pronouncements Adopted During the Current Year section of Note 1, “Basis of Presentation and Summary of Significant Accounting Policies,” of the Notes to Condensed Consolidated Financial Statements.
 
Accounting Pronouncements Adopted During the Current Year
 
See “Accounting Pronouncements Adopted During the Current Year” under Note 1, “Basis of Presentation and Summary of Significant Accounting Policies,” of the Notes to Condensed Consolidated Financial Statements for a discussion of certain accounting standards that have been issued and were adopted during the current fiscal year.
 
New Accounting Pronouncements Not Yet Adopted
 
See “Recent Accounting Pronouncements Not Yet Adopted” under Note 1, “Basis of Presentation and Summary of Significant Accounting Policies,” of the Notes to Condensed Consolidated Financial Statements for a discussion of certain accounting standards that have been issued but not yet adopted.





Forward-looking Statements
 
This Quarterly Report on Form 10-Q contains forward-looking statements.  These statements, which are not statements of historical fact, may contain estimates, assumptions, projections and/or expectations regarding the Company’s financial position, results of operations, market position, product development, growth opportunities, economic conditions, and other similar forecasts and statements of expectation.  Forward-looking statements are often identified by words or phrases such as “anticipate,” “estimate,” “plan,” “expect,” “believe,” “intend,” “foresee,” or the negative of these terms or other similar variations thereof.  These forward-looking statements are not guarantees of future performance and are subject to a number of factors and uncertainties that could cause the Company’s actual results and experiences to differ materially from the anticipated results and expectations expressed in the forward-looking statements.
 
Forward-looking statements may include but are not limited to the following:


•management’s expectations about the macro economy;


•statements containing a projection of revenues, income (loss), earnings (loss) per share, capital expenditures, dividends, capital structure, or other financial items;


•statements of the plans and objectives of management for future operations, including, but not limited to, those statements contained under the heading “Growth Strategy” in Part I, Item 1 of the Company's 2018 Annual Report on Form 10-K;


•statements of future economic performance, including, but not limited to, those statements contained in Management’s Discussion and Analysis of Financial Condition and Results of Operations contained in the Company's 2018 Annual Report on Form 10-K;


•statements containing any assumptions underlying or relating to any of the above statements; and


•statements containing a projection or estimate.


Among the factors that may cause actual results and expectations to differ from anticipated results and expectations expressed in such forward-looking statements are the following:


•the risk factors described in Part I, “Item 1A. Risk Factors” included in the Company's 2018 Annual Report and those described from time to time in our future reports filed with the SEC;


•the possibility that, in the event a change of control of the Company is sought, certain clients may attempt to invoke provisions in their contracts allowing for termination upon a change in control, which may result in a decline in revenue and profit;


the possibility that the integration of acquired businesses may not be as successful as planned;

•the possibility that the fair value of certain of our assets may not be equal to the carrying value of those assets now or in future time periods;


•the possibility that sales cycles may lengthen;


•the possibility that we will not be able to properly motivate our sales force or other associates;


•the possibility that we may not be able to attract and retain qualified technical and leadership associates, or that we may lose key associates to other organizations;


the possibility that we will not be able to continue to receive credit upon satisfactory terms and conditions;

•the possibility that competent, competitive products, technologies or services will be introduced into the marketplace by other companies;



•the possibility that there will be changes in consumer or business information industries and markets that negatively impact the Company;




•the possibility that we will not be able to protect proprietary information and technology or to obtain necessary licenses on commercially reasonable terms;


•the possibility that there will be changes in the legislative, accounting, regulatory and consumer environments affecting our business, including but not limited to litigation, legislation, regulations and customs impairing our ability to collect, manage, aggregate and use data;


•the possibility that data suppliers might withdraw data from us, leading to our inability to provide certain products and services;


•the possibility that data purchasers will reduce their reliance on us by developing and using their own, or alternative, sources of data generally or with respect to certain data elements or categories;


•the possibility that we may enter into short-term contracts, which would affect the predictability of our revenues;


•the possibility that the amount of ad hoc, volume-based and project work will not be as expected;


•the possibility that we may experience a loss of data center capacity or interruption of telecommunication links or power sources;


•the possibility that we may experience failures or breaches of our network and data security systems, leading to potential adverse publicity, negative customer reaction, or liability to third parties;


•the possibility that our clients may cancel or modify their agreements with us;


•the possibility that we will not successfully complete customer contract requirements on time or meet the service levels specified in the contracts, which may result in contract penalties or lost revenue;


•the possibility that we may experience processing errors that result in credits to customers, re-performance of services or payment of damages to customers;


•the possibility our performance may decline and we may lose advertisers and revenue if the use of "third-party cookies" or other tracking technology is rejected by Internet users, restricted or otherwise subject to unfavorable regulation, blocked or limited by technical changes on end users' devices, or our or our clients' ability to use data on our platform is otherwise restricted;

•general and global negative economic conditions; and


•our tax rate and other effects of the changes to U.S. federal tax law.law.
 
With respect to the provision of products or services outside our primary base of operations in the United States, all of the above factors apply, along with the difficulty of doing business in numerous sovereign jurisdictions due to differences in scale, competition, culture, laws and regulations.
 
Other factors are detailed from time to time in periodic reports and registration statements filed with the SEC.  The Company believes that it has the product and technology offerings, facilities, associates and competitive and financial resources for continued business success, but future revenues, costs, margins and profits are all influenced by a number of factors, including those discussed above, all of which are inherently difficult to forecast.
 
In light of these risks, uncertainties and assumptions, the Company cautions readers not to place undue reliance on any forward-looking statements.  The Company undertakes no obligation to publicly update or revise any forward-looking statements based on the occurrence of future events, the receipt of new information or otherwise.





Item 3.  Quantitative and Qualitative Disclosures about Market Risk
 
We believe there have been no material changes in our market risk exposures for the threenine months ended June 30,December 31, 2018, as compared with those discussed in our Annual Report on Form 10-K for the fiscal year ended March 31, 2018.
 
Item 4.  Controls and Procedures
 
(a) Evaluation of Disclosure Controls and Procedures.
 
Our management, with the participation of our Chief Executive Officer and President (our principal executive officer) and our President, Chief Financial Officer and Executive Vice PresidentMD of International (our principal financial and accounting officer), evaluated the effectiveness of our disclosure controls and procedures (as defined under Rule 13a-15(e) of the Securities Exchange Act of 1934, as amended). Based on this evaluation, our principal executive officer and our principal financial and accounting officer concluded that as of June 30,December 31, 2018, our disclosure controls and procedures were effective.
 
(b) Changes in Internal Control over Financial Reporting.
 
There have been no changes in our internal control over financial reporting that occurred during the fiscal quarter ended June 30,December 31, 2018 that have materially affected, or are reasonably likely to materially affect, our internal control over financial reporting.





PART II.  OTHER INFORMATION


Item 1.  Legal Proceedings
 
There are currently no matters pending against the Company or its subsidiaries for which the potential exposure is considered material to the Company’s condensed consolidated financial statements.
 
Item 1A. Risk Factors
 
The risks described in Part I, Item 1A, “Risk Factors” in our Annual Report on Form 10-K for the year ended March 31, 2018 (the "2018 Form 10-K"), which was filed with the Securities and Exchange Commission on May 25, 2018, remain current in all material respects. We are updating the risk factors in our 2018 Form 10-K to include the following additional risk factors. The following risk factors should be read in conjunction with the risk factors discussed in Part 1, Item 1A of our 2018 Form 10-K. The risk factors in our 2018 Form 10-K as updated to include the risk factors below, do not identify all risks that we face.  Our operations could also be affected by factors that are not presently known to us or that we currently consider to be immaterial to our operations.  If any of the identified risks or others not specified in our SEC filings materialize, our business, financial condition, or results of operations could be materially adversely affected.  In these circumstances, the market price of our common stock could decline.


The announcement and pendency of our sale of the Acxiom Marketing Solutions business (the “AMS Business”) to The Interpublic Group of Companies, Inc. (“IPG”) for $2.3 billion in cash, subject to customary closing adjustments (the “AMS Sale”), and the planned Holdco Merger and LLC Conversion (each, as defined below, and, together with the AMS Sale, the “AMS Sale and Reorganization”) whether or not consummated, may adversely affect our business.

The announcement and pendency of the AMS Sale and Reorganization, whether or not consummated, may adversely affect the trading price of our common stock, our business or our relationships with clients, vendors and employees. As a result of the announcement and pendency of the AMS Sale and Reorganization, third parties may be unwilling to enter into material agreements with respect to our business. New or existing clients, vendors and other business partners may prefer to enter into agreements with our competitors who have not expressed an intention to sell a portion of their business because clients and business partners may perceive that such new relationships are likely to be more stable. In addition, pending the completion of the AMS Sale and Reorganization, we may be unable to attract and retain key personnel as our employees may become concerned about the future of our business and lose focus or seek other employment. Furthermore, our management’s focus and attention and employee resources may be diverted from operational matters during the pendency of the AMS Sale and Reorganization. The Membership Interest Purchase Agreement dated as of July 2, 2018 by and among IPG, LiveRamp, Inc., our wholly owned subsidiary (“LiveRamp”), Acxiom Holdings, Inc., our wholly owned subsidiary (“Holdco”), and us (the “Purchase Agreement”) also imposes certain restrictions on the conduct of our business prior to the completion of the AMS Sale and Reorganization, which could delay or prevent us from undertaking business opportunities that may arise pending completion of the AMS Sale and Reorganization. In the event that the AMS Sale and Reorganization is not completed, the announcement of the termination of the Purchase Agreement may also adversely affect the trading price of our common stock, our business or our relationships with clients, vendors and employees.



We cannot be sure if or when the AMS Sale and Reorganization will be completed.

The consummation of the AMS Sale and Reorganization is subject to the satisfaction or waiver of various conditions, including the authorization of the AMS Sale by our stockholders and the authorization of our holding company merger with Holdco (the “Holdco Merger”) and our conversion into a limited liability company organized under the laws of the State of Delaware (the “LLC Conversion”) by our stockholders. We cannot guarantee that the closing conditions set forth in the Purchase Agreement or related documents will be satisfied. If we are unable to satisfy the closing conditions in IPG’s favor, or if other mutual closing conditions are not satisfied, IPG will not be obligated to complete the AMS Sale.

If the AMS Sale is not completed, our board of directors, in discharging its fiduciary obligations to our stockholders, will evaluate other strategic alternatives to the AMS Sale that may be available, which alternatives may not be as favorable to our stockholders as the AMS Sale. Any future sale of substantially all of our assets or other transactions may be subject to further stockholder approval.



If we fail to complete the AMS Sale and Reorganization, the failure to maintain existing business relationships or enter into new ones could adversely affect our business, results of operations, and financial condition. If we fail to complete the AMS Sale and Reorganization, we expect that we will also retain and continue to operate the AMS Business. The potential for loss or disaffection of employees or clients or vendors of the AMS Business following a failure to consummate the AMS Sale could have a material, negative impact on the value of our business.

In addition, if the AMS Sale and Reorganization are not consummated, our management and other employees will have expended extensive time and effort and their focus and attention will have been diverted from operational matters during the pendency of AMS Sale and Reorganization, and we will have incurred significant third party transaction costs, in each case, without any commensurate benefit, which may have a material and adverse effect on our stock price and results of operations.

The Purchase Agreement limits our ability to pursue alternatives to the AMS Sale and Reorganization.

The Purchase Agreement contains provisions that prohibit us from selling the AMS Business to any party other than IPG. The Purchase Agreement also contains provisions that make it more difficult for us to sell the entire Company. These provisions include the prohibition on our ability to solicit a competing proposal with respect to the AMS Sale and the requirement that we pay a termination fee equal to $86.25 million or, in certain circumstances, up to $15 million of expenses (which is creditable toward the termination fee if it is also payable) if the Purchase Agreement is terminated in specified circumstances. These provisions could make it less advantageous for a third party that might have an interest in acquiring us to consider or propose an alternative transaction, even if that party were prepared to pay consideration with a higher value than the consideration to be paid by IPG.
Because our LiveRamp business (the “LiveRamp Business”) represented a relatively small portion of our consolidated revenue for the fiscal year ended March 31, 2018, if the AMS Sale and Reorganization are completed, our business will be substantially different and may never achieve or sustain profitability.

The revenue generated from our LiveRamp Business for the fiscal year ended March 31, 2018 constituted approximately 24% of our consolidated revenue for that fiscal year. Although we expect the revenue generated from our LiveRamp Business to grow in the future, our business will be substantially different following the AMS Sale and Reorganization, and there can be no assurance that we will achieve sustained growth in our LiveRamp Business, achieve or sustain profitability in our LiveRamp Business, or generate positive cash flows from our LiveRamp Business, or in new products or business opportunities we may pursue.

In addition, since our focus following the closing of the AMS Sale and Reorganization will be on our LiveRamp Business, our management may face even greater expectations from investors and analysts to more quickly produce improved quarterly financial results for our LiveRamp Business as compared to the periods prior to the AMS Sale and Reorganization. This might cause distractions for our management and our board of directors and might at times conflict with our desire to build long-term stockholder value.

Our stockholders will not receive any distribution from the AMS Sale and Reorganization, and may never receive any return of value.

We currently intend to use the net proceeds from the AMS Sale to, among other things, pay the approximately $230 million balance of our outstanding loans under the Sixth Amended and Restated Credit Agreement, dated as of June 20, 2017, by and among the Company and the financial institutions party thereto from time to time as lenders, and related fees, to initiate a $500 million cash tender offer for our common stock, increase our outstanding share repurchase authorization by up to $500 million, and extend the duration of the program to December 31, 2020, and to fund growth initiatives, strategic acquisition opportunities and meet on going cash needs. However, there is no guarantee that the cash tender offer or increase or extension in the share repurchase program will occur.

In addition, we have not declared any cash dividends and do not intend to declare or pay any cash dividends in the foreseeable future. Stockholders also do not have appraisal rights in connection with the AMS Sale and Reorganization. Stockholders will not directly receive any liquidity from the AMS Sale and Reorganization and the only return to them will be based on any future appreciation in our stock price or upon a future sale or liquidation of us. Much depends on our future business, including the success or failure of our LiveRamp Business. There are no assurances that we will be successful, and current stockholders may never get a return on their investment.



There can be no assurances that we will be successful in investing the proceeds of the AMS Sale.

The process to identify potential investment opportunities, growth initiatives, strategic acquisition opportunities and to evaluate the future returns therefrom and business prospects thereof can be time consuming and uncertain. Our management could spend or invest the proceeds from the AMS Sale in ways with which our stockholders may not agree, and our management and the board of directors may authorize such spending or investment without seeking stockholder approval. The investment of these proceeds may not yield a favorable return and there can be no assurances that we will be successful in the investment of these proceeds.

We will continue to incur the expenses of complying with public company reporting requirements following the closing of the AMS Sale and Reorganization.

After the AMS Sale and Reorganization, we will continue to be required to comply with the applicable reporting requirements of the Exchange Act, the Sarbanes-Oxley Act of 2002, the Dodd-Frank Wall Street Reform and Consumer Protection Act of 2010, as well as rules adopted, and to be adopted, by the SEC and NASDAQ, and will incur significant legal, accounting and other expenses in connection with that compliance. In addition, our management and other personnel will need to continue to devote a substantial amount of time to these compliance initiatives.

We may be exposed to litigation related to the AMS Sale and Reorganization from the holders of our common stock.

Transactions such as the AMS Sale and Reorganization are often subject to lawsuits by stockholders. Particularly because the holders of our common stock will not receive any consideration from the AMS Sale and Reorganization, it is possible that they may sue the Company or the board of directors. Such lawsuits could result in substantial costs and divert our management’s attention from other business concerns, which could seriously harm our business.

Item 2.  Unregistered Sales of Equity Securities and Use of Proceeds


(a)a.Not applicable.


(b)a.Not applicable.


(c)a.The table below provides information regarding purchases by AcxiomLiveRamp of its common stock during the periods indicated.
        Maximum Number (or Approximate
  Total Number Average Price Total Number of Shares Dollar Value) of Shares that May Yet
  of Shares Paid Purchased as Part of Publicly  Be Purchased Under the
Period Purchased Per Share Announced Plans or Programs Plans or Programs
April 2018 1,291,374
 23.93
 1,291,374
 $94,458,537
May 2018 561,697
 26.45
 561,697
 79,600,656
June 2018 —
 —
 —
 79,600,656
Total 1,853,071
 24.70
 1,853,071
 N/A
Maximum Number (or Approximate 
Total Number Average Price Total Number of Shares Dollar Value) of Shares that May Yet 
of Shares Paid Purchased as Part of Publicly Be Purchased Under the 
Period Purchased Per Share Announced Plans or Programs Plans or Programs 
October 2018 — — — $79,600,656 
November 2018 400,194 45.81 400,194 61,259,714 
December 2018 — — — 61,259,714 
Total 400,194 — 400,194 N/A 
 
On August 29, 2011, the board of directors adopted a common stock repurchase program.  That program was subsequently modified and expanded, most recently on March 30,October 25, 2018. Under the modified common stock repurchase program, the Company may purchase up to $500.0 million$1.0 billion of its common stock through the period ending December 31, 2019.2020. Through June 30,December 31, 2018, the Company had repurchased a total of 22.022.4 million shares of its stock for $420.4$438.7 million, leaving remaining capacity of $79.6$561.3 million under the stock repurchase program.
 


Item 3. Defaults Upon Senior Securities
 
Not applicable.
 
Item 4. Mine Safety Disclosures
 
Not applicable.
 
Item 5. Other Information
 
Not applicable.





Item 6.  Exhibits
 
The following exhibits are filed with this quarterly report: 
 
31.110.1 
31.1 
31.2
32.1
32.2
101
The following financial information from our Quarterly Report on Form 10-Q for the quarter ended June 30,December 31, 2018, formatted in XBRL: (i) Condensed Consolidated Balance Sheets at June 30,December 31, 2018, and March 31, 2018, (ii) Condensed Consolidated Statements of Operations for the Three Months ended June 30,December 31, 2018 and 2017, (iii) Condensed Consolidated Statements of Operations for the Nine Months ended December 31, 2018 and 2017, (iv) Condensed Consolidated Statements of Comprehensive LossIncome for the Three Months ended June 30,December 31, 2018 and 2017, (iv)(v) Condensed Consolidated Statements of Comprehensive Income for the Nine Months ended December 31, 2018 and 2017, (vi) Condensed Consolidated Statement of Equity for the ThreeNine Months ended June 30,December 31, 2018, (v)(vii) Condensed Consolidated Statements of Cash Flows for the ThreeNine Months ended June 30,December 31, 2018 and 2017, and (vi) the Notes to Condensed Consolidated Financial Statements, tagged in detail.
 





SIGNATURE
 
Pursuant to the requirements of the Securities Exchange Act of 1934, the Registrant has duly caused this report to be signed on its behalf by the undersigned thereunto duly authorized.
 
LiveRamp Holdings, Inc. 
Acxiom Corporation
Dated: February 11, 2019 
Dated: August 9, 2018
By:/s/ Warren C. Jenson
(Signature)
Warren C. Jenson
President, Chief Financial Officer &and Executive Vice PresidentManaging Director of International 
(principal financial and accounting officer)



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