SIGNIFICANT ACCOUNTING POLICIES (Policies) | 12 Months Ended |
Dec. 31, 2014 |
SIGNIFICANT ACCOUNTING POLICIES [Abstract] | |
Basis of presentation and consolidation | Basis of presentation and consolidation—On November 10, 2014, we changed our fiscal year-end from a 52-53 week fiscal year ending on the last Sunday of December of each year to a December 31 fiscal year-end. Per Securities and Exchange Commission guidance, our change from a 52-53 week fiscal year to a December 31 fiscal year-end is not deemed a change in fiscal year-end and a separate transition report is not required. The consolidated financial statements include December 30, 2013 through December 31, 2014. |
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The consolidated financial statements include the accounts of Journal Communications, Inc. and its wholly owned subsidiaries. All significant intercompany balances and transactions have been eliminated. |
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Palm Springs television results of operations have been reflected as discontinued operations in our consolidated statements of operations. |
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On July 30, 2014, we entered into an agreement with Scripps to merge our broadcast operations and spin-off and then merge our newspaper businesses, creating two separately traded public companies. The merged broadcast and digital media company, based in Cincinnati, Ohio, will retain the Scripps name. The newspaper company will be called Journal Media Group and will combine Scripps' daily newspapers, community publications and related digital products in 13 markets with Journal Communications' Milwaukee Journal Sentinel, Wisconsin community publications and affiliated digital products. The company will be headquartered in Milwaukee, Wisconsin. |
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In connection with the transactions, each share of our then outstanding class A and class B common stock will receive 0.5176 Scripps class A common shares and 0.1950 shares of Journal Media Group common stock, and each Scripps class A common share and common voting share then outstanding will receive 0.2500 shares of Journal Media Group common stock. Immediately following consummation of the transactions, holders of our common stock will own approximately 41% of the common shares of Journal Media Group and approximately 31% of the common shares of Scripps, in the form of Scripps class A common shares. Scripps shareholders will retain approximately 69% ownership in Scripps, with the Scripps family retaining its controlling interest in Scripps through its ownership of common voting shares. Scripps shareholders will own approximately 59% of the common shares of Journal Media Group. Journal Media Group will have one class of stock and no controlling shareholder. |
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The boards of directors of both companies have approved the transactions, which are subject to customary regulatory and shareholder approvals. The deal is expected to close in the first half of 2015. For more information regarding the transaction, please see our Current Report on Form 8-K dated July 30, 2014, which was filed with the SEC on July 31, 2014. |
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During the first quarter of 2014, we made an organizational change to our leadership team in our broadcasting segment reflecting focus on our two primary businesses: television and radio. As a result of this organizational change, we now have four reportable segments: television, radio, publishing and corporate. Our television segment consists of 14 television stations in 8 states that we own or to which we provide services. Our radio segment consists of 34 radio stations in 8 states, after the divestiture of an FM station in December 2014. Our publishing segment consists of the Milwaukee Journal Sentinel, which serves as the only major daily newspaper for the Milwaukee metropolitan area, and a number of community publications, primarily in southeastern Wisconsin. Our corporate segment consists of unallocated corporate expenses and revenue eliminations. Prior periods have been updated to reflect our new segment structure. |
Use of estimates | Use of estimates—The preparation of financial statements in conformity with accounting principles generally accepted in the United States requires management to make estimates and assumptions that affect the amounts reported in the financial statements and accompanying notes. Actual results could differ from those estimates. |
Revenue recognition | Revenue recognition—Our principal sources of revenue are the sale of airtime on television and radio stations, the sale of advertising in newspapers and the sale of newspapers to individual subscribers and distributors. In addition, we sell advertising on our newspaper, television and radio websites and derive revenue from other online activities. Advertising revenue is recognized in the publishing, television and radio businesses when advertisements are published, aired or displayed, or when related advertising services are rendered. Circulation revenue is recognized on a pro-rata basis over the term of the newspaper subscription or when the newspaper is delivered to the customer. Amounts we receive from customers in advance of revenue recognition are deferred as liabilities. Deferred revenue to be earned more than one year from the balance sheet date is included in other long-term liabilities in the consolidated balance sheets. |
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Printing revenue from external customers as well as third-party distribution revenue is recognized when the product is delivered in accordance with the customers’ instructions. |
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We also derive revenues from retransmission of our television programs by MVPDs. Retransmission revenues from MVPDs are recognized based on average monthly subscriber counts and contractual rates over the terms of the agreements. |
Multiple-deliverable revenue arrangements | Multiple-deliverable revenue arrangements— We sell airtime on television and radio stations and online advertising bundled arrangements, where multiple products are involved. Significant deliverables within these arrangements include advertising on television and radio stations and advertising placed on various company websites, each of which are considered separate units of accounting. Our daily newspaper sells print and online advertising in bundled arrangements, where multiple products are involved. Significant deliverables within these arrangements include advertising in the printed daily newspaper and advertising placed on various company websites, each of which are considered separate units of accounting. There were no significant changes in units of accounting, the allocation process or the pattern and timing of revenue recognition upon adoption of the amended guidance related to revenue recognition for arrangements with multiple deliverables. |
Shipping and handling costs | Shipping and handling costs—Shipping and handling costs, including postage, billed to customers are included in revenue and the related costs are included in operating costs and expenses. |
Advertising expense | Advertising expense—We expense our advertising costs as incurred. Advertising expense totaled $5,861, $6,645 and $7,438 in 2014, 2013 and 2012, respectively. |
Interest expense | Interest expense—All interest incurred during the years ended December 31, 2014, December 29, 2013 and December 30, 2012 was expensed. |
Income taxes | Income taxes—Deferred taxes are provided for the net tax effects of temporary differences between the carrying amounts of assets and liabilities for financial reporting purposes and the amounts for income tax purposes. Valuation allowances are established when management determines that it is more likely than not that some portion or all of a deferred tax asset will not be realized. |
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We recognize an uncertain tax position when it is more likely than not to be sustained upon examination by taxing authorities and we measure the tax benefit as the largest amount of benefit, determined on a cumulative probability basis, which is more likely than not to be realized upon ultimate settlement. |
Fair values | Fair values—The carrying amount of cash and cash equivalents, receivables, accounts payable, accrued severance and barter programming assets and liabilities approximates fair value as of December 31, 2014 and December 29, 2013. |
Cash and Cash equivalents | Cash and Cash equivalents—Cash equivalents are highly liquid investments with maturities of three months or less when purchased. Cash equivalents are stated at cost, which approximates market value. The cash balance at December 31, 2014 and December 29, 2013 was $13,233 and $1,912, respectively. The increase in cash was a result of our decision to maintain the maximum debt capacity under the term loan as voluntary prepayments of the secured term loan facility would represent a permanent reduction in credit available. |
Receivables, net | Receivables, net— Our non-interest bearing accounts receivable arise primarily from the sale of advertising, commercial printing, commercial distribution and the retransmission of our television programs by MVPDs. We record accounts receivable at original invoice amounts. The accounts receivable balance is reduced by an estimated allowance for doubtful accounts. We evaluate the collectability of our accounts receivable based on a combination of factors. We specifically review historical write-off activity by market, large customer concentrations, customer creditworthiness and changes in our customer payment patterns and terms when evaluating the adequacy of the allowance for doubtful accounts. In circumstances where we are aware of a specific customer’s inability to meet its financial obligations, we record a specific reserve to reduce the amounts recorded to what we believe will be collected. For all other customers, we recognize allowances for bad debts based on historical experience of bad debts as a percent of accounts receivable for each business unit. We write off uncollectible accounts against the allowance for doubtful accounts after collection efforts have been exhausted. The allowance for doubtful accounts at December 31, 2014 and December 29, 2013 was $1,807 and $1,688, respectively. |
Concentration of credit risk | Concentration of credit risk—Generally, credit is extended based upon an evaluation of the customer’s financial position, and advance payment is not required. Credit losses are provided for in the financial statements and have been within management’s expectations. Given the current economic environment, credit losses may increase in the future. |
Inventories | Inventories—Inventories are stated at the lower of cost (first in, first out method) or market. A summary of inventories follows: |
| | 2014 | | | 2013 | | | | | |
December 31 and December 29 | | | | | | | | | | |
Paper and supplies | | $ | 1,862 | | | $ | 2,224 | | | | | |
Work in process | | | 73 | | | | 59 | | | | | |
Less obsolescence reserve | | | (83 | ) | | | (92 | ) | | | | |
Inventories, net | | $ | 1,852 | | | $ | 2,191 | | | | | |
Television programming | Television programming—We have agreements with distributors for the rights to television programming over contract periods, which generally run for one to five years. Each contract is recorded as an asset and a liability at an amount equal to its gross contractual commitment when the license period begins and the program is available for its first showing. The portion of program contracts that become payable within one year is reflected as a current liability in the accompanying consolidated balance sheets. The rights to program materials are carried at the lower of unamortized cost or estimated net realizable value or in the case of programming obtained by an acquisition, at estimated fair value. The cost for the rights of first-run and sports programming are recorded as the episodes and games are broadcast. We do not record an asset and liability for such rights when the license period begins because the programming is not available for broadcast. Certain of our agreements require us to provide barter advertising time to our distributors. Barter advertising revenue and expense was $7,940, $7,210 and $5,393 in 2014, 2013 and 2012, respectively. |
Property and equipment | Property and equipment—Property and equipment are recorded at cost. Depreciation of property and equipment is provided, using the straight-line method, over the estimated useful lives, which are as follows: |
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| | Years | | | | | | | | | |
Building and land improvements | | | 10 | | | | | | | | | |
Buildings | | | 30 | | | | | | | | | |
Newspaper printing presses | | | 25 | | | | | | | | | |
Broadcasting equipment | | | 20-May | | | | | | | | | |
Other printing presses | | | 10 | | | | | | | | | |
Other | | | 10-Mar | | | | | | | | | |
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Depreciation expense totaled $19,141, $20,058 and $20,590 in 2014, 2013 and 2012, respectively. As of December 31, 2014, we have $150,396 of net property and equipment secured by our credit facility. |
Capital leases | Capital leases—We charge amortization expense of assets recorded under capital leases to depreciation expense in our consolidated statements of operations and accumulated depreciation in our consolidated balance sheets. At December 31, 2014 we recorded $474 for capital leases in equipment, $241 in accumulated depreciation, $82 in current portion of long-term liabilities and $162 in other long-term liabilities in our consolidated balance sheet. At December 29, 2013 we recorded $474 for capital leases in equipment, $162 in accumulated depreciation, $79 in current portion of long-term liabilities and $244 in other long-term liabilities in our consolidated balance sheet. |
Intangible assets | Intangible assets—Indefinite-lived intangible assets, which consist of television and radio broadcast licenses and goodwill, are reviewed for impairment at least annually or more frequently if impairment indicators are present. We continue to amortize definite-lived intangible assets on a straight-line basis over periods of five to 25 years. The costs incurred to renew or extend the term of our television and radio broadcast licenses and certain customer relationships are expensed as incurred. See Note 9, “Goodwill, Broadcast Licenses and Other Intangible Assets,” for additional disclosures on our intangible assets. |
Notes receivable | Notes receivable — In partial consideration for the sale of certain publishing assets of Journal Community Publishing Groups, Inc. in December 2012, we received a $772 promissory note bearing interest at 3% and repayable over three years. At the time of the sale, we recorded a $738 receivable representing the estimated fair value of the note discounted at 6.25%. These fair value measurements fall within Level 2 of the fair value hierarchy. The notes receivable balance at December 31, 2014 and December 29, 2013 was $266 and $524, respectively. |
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Interest income and the unamortized discount on our notes receivable are recorded using the effective interest method. |
Impairment of long-lived assets | Impairment of long-lived assets—Property and equipment and other definite-lived intangible assets are reviewed for impairment whenever events or changes in circumstances indicate that the carrying amount may not be recoverable. If an asset is considered impaired, a charge is recognized for the difference between the fair value and carrying value of the asset or group of assets. Such analyses necessarily involve significant judgment. In 2014, we recorded an impairment charge of $32 and $37 at our television and radio segments, respectively, representing the excess in indicated fair value over the carrying value of syndicated contracts. In 2013, we recorded a property impairment charge of $238 at our radio segment representing the excess of indicated fair value over the carrying value of a building held for sale. Fair value was determined pursuant to an accepted offer to sell the building. This fair value measurement is considered a level 3 measurement under the fair value hierarchy. |
Share Repurchases | Share Repurchases—Shares repurchased under our July 2011 share repurchase program remain authorized but unissued. In December 2013, our board of directors extended our share repurchase program until the end of fiscal 2015. The cost of the class A shares repurchased under the program was greater than par value and we recorded a charge to par value and additional paid in capital. In connection with the transactions with Scripps, we are precluded from repurchasing any further shares unless it would not materially impair, impede or delay the transactions. |
Earnings per share | Earnings per share |
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Basic |
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For all periods during which our class C common stock was issued and outstanding (see Note 2 “Notes Payable” regarding the Company’s repurchase of all 3,264 shares of the Company’s class C common stock issued and outstanding in August 2012), we apply the two-class method for calculating and presenting our basic earnings per share. As noted in the FASB’s guidance for earnings per share, the two-class method is an earnings allocation formula that determines earnings per share for each class of common stock according to dividends declared (or accumulated) and participation rights in undistributed earnings. Under that method: |
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| (a) | Income (loss) from continuing operations (“net earnings (loss)”) is reduced by the amount of dividends declared in the current period for each class of stock and by the contractual amount of dividends that must be paid or accrued during the current period. | | | | | | | | | | |
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| (b) | The remaining earnings, which may include earnings from discontinued operations (“undistributed earnings”), are allocated to each class of common stock to the extent that each class of stock may share in earnings if all of the earnings for the period were distributed. | | | | | | | | | | |
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| (c) | The remaining losses (“undistributed losses”) are allocated to the class A and B common stock. Undistributed losses are not allocated to the class C common stock and non-vested restricted stock because the class C common stock and the non-vested restricted stock are not contractually obligated to share in the losses. Losses from discontinued operations are allocated to class A and B common stock and may be allocated to class C common stock and non-vested restricted stock if there is undistributed earnings after deducting earnings distributed to class C common stock from income from continuing operations. | | | | | | | | | | |
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| (d) | The total earnings (loss) allocated to each class of common stock are then divided by the number of weighted average shares outstanding of the class of common stock to which the earnings (loss) are allocated to determine the earnings (loss) per share for that class of common stock. | | | | | | | | | | |
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| (e) | Basic earnings (loss) per share data are presented for class A and B common stock in the aggregate and for class C common stock. The basic earnings (loss) per share for class A and B common stock are the same; hence, these classes are reported together. | | | | | | | | | | |
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In applying the two-class method, we have determined that undistributed earnings should be allocated equally on a per share basis among each class of common stock due to the lack of any contractual participation rights of any class to those undistributed earnings. Undistributed losses are allocated to only the class A and B common stock for the reason stated above. |
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The following table sets forth the computation of basic earnings per share under the two-class method: |
| | 2014 | | | 2013 | | | 2012 | |
Numerator for basic earnings from continuing operations for each class of common stock and non-vested restricted stock: | | | | | | | | | |
Earnings from continuing operations | | $ | 39,318 | | | $ | 26,250 | | | $ | 32,582 | |
Less dividends: | | | | | | | | | | | | |
Class A and B | | | - | | | | - | | | | - | |
Minimum class C | | | - | | | | - | | | | 1,146 | |
Non-vested restricted stock | | | - | | | | - | | | | - | |
Total undistributed earnings from continuing operations | | $ | 39,318 | | | $ | 26,250 | | | $ | 31,436 | |
Undistributed earnings from continuing operations: | | | | | | | | | | | | |
Class A and B | | $ | 39,318 | | | $ | 26,250 | | | $ | 29,991 | |
Class C | | | - | | | | - | | | | 1,233 | |
Non-vested restricted stock | | | - | | | | - | | | | 212 | |
Total undistributed earnings from continuing operations | | $ | 39,318 | | | $ | 26,250 | | | $ | 31,436 | |
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Numerator for basic earnings from continuing operations per class A and B common stock: | | | | | | | | | | | | |
Minimum dividends on class A and B | | $ | - | | | $ | - | | | $ | - | |
Class A and B undistributed earnings | | | 39,318 | | | | 26,250 | | | | 29,991 | |
Numerator for basic earnings from continuing operations per class A and B common stock | | $ | 39,318 | | | $ | 26,250 | | | $ | 29,991 | |
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Numerator for basic earnings from continuing operations per class C common stock: | | | | | | | | | | | | |
Minimum dividends on class C | | $ | - | | | $ | - | | | $ | 1,146 | |
Class C undistributed earnings | | | - | | | | - | | | | 1,233 | |
Numerator for basic earnings from continuing operations per class C common stock | | $ | - | | | $ | - | | | $ | 2,379 | |
Denominator for basic earnings from continuing operations for each class of common stock: | | | | | | | | | | | | |
Weighted average shares outstanding - | | | | | | | | | | | | |
Class A and B | | | 50,529 | | | | 50,259 | | | | 50,091 | |
Class C | | | - | | | | - | | | | 3,264 | -1 |
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Basic earnings per share from continuing operations: | | | | | | | | | | | | |
Class A and B | | $ | 0.78 | | | $ | 0.52 | | | $ | 0.6 | |
Class C | | $ | - | | | $ | - | | | $ | 0.73 | |
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-1 | The weighted average number of shares is calculated only for the period of time which the class C common stock was outstanding during the period, not the entire period. | | | | | | | | | | | |
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| | 2014 | | | 2013 | | | 2012 | |
Numerator for basic earnings from discontinued operations for each class of common stock and non-vested restricted stock: | | | | | | | | | |
Total undistributed earnings from discontinued operations | | $ | 5,872 | | | $ | (49 | ) | | $ | 743 | |
Undistributed earnings from discontinued operations: | | | | | | | | | | | | |
Class A and B | | | 5,872 | | | | (49 | ) | | | 709 | |
Class C | | | - | | | | - | | | | 29 | |
Non-vested restricted stock | | | - | | | | - | | | | 5 | |
Total undistributed earnings from discontinued operations | | $ | 5,872 | | | $ | (49 | ) | | $ | 743 | |
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Denominator for basic earnings from discontinued operations for each class of common stock: | | | | | | | | | | | | |
Weighted average shares outstanding - | | | | | | | | | | | | |
Class A and B | | | 50,529 | | | | 50,259 | | | | 50,091 | |
Class C | | | - | | | | - | | | | 3,264 | -1 |
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Basic earnings per share from discontinued operations: | | | | | | | | | | | | |
Class A and B | | $ | 0.12 | | | $ | - | | | $ | 0.01 | |
Class C | | $ | - | | | $ | - | | | $ | 0.01 | |
Numerator for basic net earnings for each class of common stock: | | | | | | | | | | | | |
Net earnings | | $ | 45,190 | | | $ | 26,201 | | | $ | 33,325 | |
Less dividends: | | | | | | | | | | | | |
Class A and B | | | - | | | | - | | | | - | |
Minimum class C | | | - | | | | - | | | | 1,146 | |
Non-vested restricted stock | | | - | | | | - | | | | - | |
Total undistributed net earnings | | $ | 45,190 | | | $ | 26,201 | | | $ | 32,179 | |
Undistributed net earnings: | | | | | | | | | | | | |
Class A and B | | $ | 45,190 | | | $ | 26,201 | | | $ | 30,701 | |
Class C | | | - | | | | - | | | | 1,261 | |
Non-vested restricted stock | | | - | | | | - | | | | 217 | |
Total undistributed net earnings | | $ | 45,190 | | | $ | 26,201 | | | $ | 32,179 | |
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Numerator for basic net earnings per class A and B common stock: | | | | | | | | | | | | |
Dividends on class A and B | | $ | - | | | $ | - | | | $ | - | |
Class A and B undistributed net earnings | | | 45,190 | | | | 26,201 | | | | 30,701 | |
Numerator for basic net earnings per class A and B common stock | | $ | 45,190 | | | $ | 26,201 | | | $ | 30,701 | |
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-1 | The weighted average number of shares is calculated only for the period of time which the class C common stock was outstanding during the period, not the entire period. | | | | | | | | | | | |
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| | 2014 | | | 2013 | | | 2012 | |
Numerator for basic net earnings per class C common stock: | | | | | | | | | |
Minimum dividends on class C | | $ | - | | | $ | - | | | $ | 1,146 | |
Class C undistributed net earnings | | | - | | | | - | | | | 1,261 | |
Numerator for basic net earnings per class C common stock | | $ | - | | | $ | - | | | $ | 2,407 | |
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Denominator for basic net earnings for each class of common stock: | | | | | | | | | | | | |
Weighted average shares outstanding - | | | | | | | | | | | | |
Class A and B | | | 50,529 | | | | 50,259 | | | | 50,091 | |
Class C | | | - | | | | - | | | | 3,264 | -1 |
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Basic net earnings per share: | | | | | | | | | | | | |
Class A and B | | $ | 0.9 | | | $ | 0.52 | | | $ | 0.61 | |
Class C | | $ | - | | | $ | - | | | $ | 0.74 | |
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-1 | The weighted average number of shares is calculated only for the period of time which the class C common stock was outstanding during the period, not the entire period. | | | | | | | | | | | |
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Diluted |
The following table sets forth the computation of basic earnings per share under the two-class method: |
| | 2014 | | | 2013 | | | 2012 | |
Numerator for basic earnings from continuing operations for each class of common stock and non-vested restricted stock: | | | | | | | | | |
Earnings from continuing operations | | $ | 39,318 | | | $ | 26,250 | | | $ | 32,582 | |
Less dividends: | | | | | | | | | | | | |
Class A and B | | | - | | | | - | | | | - | |
Minimum class C | | | - | | | | - | | | | 1,146 | |
Non-vested restricted stock | | | - | | | | - | | | | - | |
Total undistributed earnings from continuing operations | | $ | 39,318 | | | $ | 26,250 | | | $ | 31,436 | |
Undistributed earnings from continuing operations: | | | | | | | | | | | | |
Class A and B | | $ | 39,318 | | | $ | 26,250 | | | $ | 29,991 | |
Class C | | | - | | | | - | | | | 1,233 | |
Non-vested restricted stock | | | - | | | | - | | | | 212 | |
Total undistributed earnings from continuing operations | | $ | 39,318 | | | $ | 26,250 | | | $ | 31,436 | |
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Numerator for basic earnings from continuing operations per class A and B common stock: | | | | | | | | | | | | |
Minimum dividends on class A and B | | $ | - | | | $ | - | | | $ | - | |
Class A and B undistributed earnings | | | 39,318 | | | | 26,250 | | | | 29,991 | |
Numerator for basic earnings from continuing operations per class A and B common stock | | $ | 39,318 | | | $ | 26,250 | | | $ | 29,991 | |
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Numerator for basic earnings from continuing operations per class C common stock: | | | | | | | | | | | | |
Minimum dividends on class C | | $ | - | | | $ | - | | | $ | 1,146 | |
Class C undistributed earnings | | | - | | | | - | | | | 1,233 | |
Numerator for basic earnings from continuing operations per class C common stock | | $ | - | | | $ | - | | | $ | 2,379 | |
Denominator for basic earnings from continuing operations for each class of common stock: | | | | | | | | | | | | |
Weighted average shares outstanding - | | | | | | | | | | | | |
Class A and B | | | 50,529 | | | | 50,259 | | | | 50,091 | |
Class C | | | - | | | | - | | | | 3,264 | -1 |
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Basic earnings per share from continuing operations: | | | | | | | | | | | | |
Class A and B | | $ | 0.78 | | | $ | 0.52 | | | $ | 0.6 | |
Class C | | $ | - | | | $ | - | | | $ | 0.73 | |
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-1 | The weighted average number of shares is calculated only for the period of time which the class C common stock was outstanding during the period, not the entire period. | | | | | | | | | | | |
67 |
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Index |
| | 2014 | | | 2013 | | | 2012 | |
Numerator for basic earnings from discontinued operations for each class of common stock and non-vested restricted stock: | | | | | | | | | |
Total undistributed earnings from discontinued operations | | $ | 5,872 | | | $ | (49 | ) | | $ | 743 | |
Undistributed earnings from discontinued operations: | | | | | | | | | | | | |
Class A and B | | | 5,872 | | | | (49 | ) | | | 709 | |
Class C | | | - | | | | - | | | | 29 | |
Non-vested restricted stock | | | - | | | | - | | | | 5 | |
Total undistributed earnings from discontinued operations | | $ | 5,872 | | | $ | (49 | ) | | $ | 743 | |
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Denominator for basic earnings from discontinued operations for each class of common stock: | | | | | | | | | | | | |
Weighted average shares outstanding - | | | | | | | | | | | | |
Class A and B | | | 50,529 | | | | 50,259 | | | | 50,091 | |
Class C | | | - | | | | - | | | | 3,264 | -1 |
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Basic earnings per share from discontinued operations: | | | | | | | | | | | | |
Class A and B | | $ | 0.12 | | | $ | - | | | $ | 0.01 | |
Class C | | $ | - | | | $ | - | | | $ | 0.01 | |
Numerator for basic net earnings for each class of common stock: | | | | | | | | | | | | |
Net earnings | | $ | 45,190 | | | $ | 26,201 | | | $ | 33,325 | |
Less dividends: | | | | | | | | | | | | |
Class A and B | | | - | | | | - | | | | - | |
Minimum class C | | | - | | | | - | | | | 1,146 | |
Non-vested restricted stock | | | - | | | | - | | | | - | |
Total undistributed net earnings | | $ | 45,190 | | | $ | 26,201 | | | $ | 32,179 | |
Undistributed net earnings: | | | | | | | | | | | | |
Class A and B | | $ | 45,190 | | | $ | 26,201 | | | $ | 30,701 | |
Class C | | | - | | | | - | | | | 1,261 | |
Non-vested restricted stock | | | - | | | | - | | | | 217 | |
Total undistributed net earnings | | $ | 45,190 | | | $ | 26,201 | | | $ | 32,179 | |
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Numerator for basic net earnings per class A and B common stock: | | | | | | | | | | | | |
Dividends on class A and B | | $ | - | | | $ | - | | | $ | - | |
Class A and B undistributed net earnings | | | 45,190 | | | | 26,201 | | | | 30,701 | |
Numerator for basic net earnings per class A and B common stock | | $ | 45,190 | | | $ | 26,201 | | | $ | 30,701 | |
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-1 | The weighted average number of shares is calculated only for the period of time which the class C common stock was outstanding during the period, not the entire period. | | | | | | | | | | | |
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Index |
| | 2014 | | | 2013 | | | 2012 | |
Numerator for basic net earnings per class C common stock: | | | | | | | | | |
Minimum dividends on class C | | $ | - | | | $ | - | | | $ | 1,146 | |
Class C undistributed net earnings | | | - | | | | - | | | | 1,261 | |
Numerator for basic net earnings per class C common stock | | $ | - | | | $ | - | | | $ | 2,407 | |
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Denominator for basic net earnings for each class of common stock: | | | | | | | | | | | | |
Weighted average shares outstanding - | | | | | | | | | | | | |
Class A and B | | | 50,529 | | | | 50,259 | | | | 50,091 | |
Class C | | | - | | | | - | | | | 3,264 | -1 |
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Basic net earnings per share: | | | | | | | | | | | | |
Class A and B | | $ | 0.9 | | | $ | 0.52 | | | $ | 0.61 | |
Class C | | $ | - | | | $ | - | | | $ | 0.74 | |
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-1 | The weighted average number of shares is calculated only for the period of time which the class C common stock was outstanding during the period, not the entire period. | | | | | | | | | | | |
Diluted earnings per share is computed based upon the assumption that common shares are issued upon exercise of our stock appreciation rights when the exercise price is less than the average market price of our common shares and common shares will be outstanding upon expiration of the vesting periods for our non-vested restricted stock and performance-based restricted stock units. For the year ended December 31, 2014, 220 non-vested restricted class B common shares and performance-based restricted stock units are not included in the computation of diluted earnings per share because they are anti-dilutive. For the year ended December 29, 2013, 177 non-vested restricted class B common shares are not included in the computation of diluted earnings per share because they are anti-dilutive. The class C shares are not converted into class A and B shares because they are anti-dilutive for all periods presented, and therefore are not included in the diluted weighted average shares outstanding. |
The following table sets forth the computation of diluted net earnings (loss) per share for class A and B common stock: |
| | 2014 | | | 2013 | | | 2012 | |
Numerator for diluted net earnings per share: | | | | | | | | | |
Dividends on class A and B common stock | | $ | - | | | $ | - | | | $ | - | |
Total undistributed earnings from continuing operations | | | 39,318 | | | | 26,250 | | | | 29,991 | |
Total undistributed earnings from discontinued operations | | | 5,872 | | | | (49 | ) | | | 710 | |
Net earnings | | $ | 45,190 | | | $ | 26,201 | | | $ | 30,701 | |
Denominator for diluted net earnings per share: | | | | | | | | | | | | |
Weighted average shares outstanding | | | 50,749 | | | | 50,436 | | | | 50,091 | |
Diluted earnings per share: | | | | | | | | | | | | |
Continuing operations | | $ | 0.77 | | | $ | 0.52 | | | $ | 0.6 | |
Discontinued operations | | | 0.12 | | | | - | | | | 0.01 | |
Net earnings | | $ | 0.89 | | | $ | 0.52 | | | $ | 0.61 | |
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Diluted earnings per share for the class C common stock is the same as basic earnings per share for the class C common stock because there are no class C common stock equivalents. |
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Prior to the repurchase of the class C common stock, each of the 3,264 class C shares outstanding was convertible at any time at the option of the holder into either (i) 1.363970 class A shares (or a total of 4,452 class A shares) or (ii) 0.248243 class A shares (or a total of 810 class A shares) and 1.115727 class B shares (or a total of 3,642 class B shares). |
New accounting standards | New accounting standards |
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In April 2014, the FASB issued Accounting Standards Update No. 2014-08 (ASU 2014-08) "Presentation of Financial Statements (Topic 205) and Property, Plant and Equipment (Topic 360): Reporting Discontinued Operations and Disclosures of Disposals of Components of an Entity." ASU 2014-08 raises the threshold for a disposal to qualify as a discontinued operation and requires new disclosures of both discontinued operations and certain other disposals that do not meet the definition of a discontinued operation. It is effective for annual periods beginning on or after December 15, 2014. Early adoption is permitted but only for disposals that have not been reported in financial statements previously issued. We adopted this guidance in the third quarter of 2014. |
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In May 2014, the FASB issued Accounting Standards Update No. 2014-09 (ASU 2014-09) amending revenue recognition guidance and requiring more detailed disclosures to enable users of financial statements to understand the nature, amount, timing, and uncertainty of revenue and cash flows arising from contracts with customers. The guidance is effective for annual and interim reporting periods beginning after December 15, 2016, with early adoption prohibited. We are currently in the process of evaluating the impact of the adoption on our consolidated financial statements. |
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In June 2014, the FASB issued Accounting Standards Update No. 2014-12 (ASU 2014-12) amending the requirement that a performance target that affects vesting and that could be achieved after the requisite service period be treated as a performance condition. The guidance is effective for annual and interim reporting periods beginning after December 15, 2015, with early adoption permitted. We are currently in the process of evaluating the impact of the adoption on our consolidated financial statements. |