Document and Entity Information
Document and Entity Information - USD ($) | 12 Months Ended | ||
Dec. 31, 2016 | Mar. 03, 2017 | Jun. 30, 2016 | |
Entity Registrant Name | A. H. Belo Corp | ||
Entity Central Index Key | 1,413,898 | ||
Document Type | 10-K | ||
Document Period End Date | Dec. 31, 2016 | ||
Amendment Flag | false | ||
Document Fiscal Year Focus | 2,016 | ||
Document Fiscal Period Focus | FY | ||
Current Fiscal Year End Date | --12-31 | ||
Entity Filer Category | Accelerated Filer | ||
Entity Public Float | $ 93,312,305 | ||
Entity Well-known Seasoned Issuer | No | ||
Entity Current Reporting Status | Yes | ||
Entity Voluntary Filers | No | ||
Series A | |||
Entity Common Stock, Shares Outstanding | 19,203,580 | ||
Series B | |||
Entity Common Stock, Shares Outstanding | 2,472,680 |
Consolidated Statements of Oper
Consolidated Statements of Operations - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2016 | Dec. 31, 2015 | Dec. 31, 2014 | |
Net Operating Revenue: | |||
Advertising and marketing services | $ 150,315 | $ 156,790 | $ 158,183 |
Circulation | 79,619 | 83,581 | 84,922 |
Printing, distribution and other | 30,050 | 31,737 | 29,683 |
Total net operating revenue | 259,984 | 272,108 | 272,788 |
Operating Costs and Expense: | |||
Employee compensation and benefits | 104,009 | 120,818 | 111,710 |
Other production, distribution and operating costs | 119,830 | 125,829 | 122,239 |
Newsprint, ink and other supplies | 25,590 | 30,892 | 32,507 |
Depreciation | 10,713 | 11,515 | 13,820 |
Amortization | 906 | 1,349 | 198 |
Goodwill impairment | 22,682 | ||
Total operating costs and expense | 283,730 | 290,403 | 280,474 |
Operating loss | (23,746) | (18,295) | (7,686) |
Other Income (Expense): | |||
Gain (loss) from equity method investments, net | (1,065) | 93,898 | |
Other income (expense), net | 2,294 | (404) | 5,773 |
Total other income (expense), net | 2,294 | (1,469) | 99,671 |
Income (Loss) from Continuing Operations Before Income Taxes | (21,452) | (19,764) | 91,985 |
Income tax provision (benefit) | (2,272) | (1,570) | 5,978 |
Income (Loss) from Continuing Operations | (19,180) | (18,194) | 86,007 |
Income from discontinued operations | 4,064 | ||
Gain (loss) from divestiture of discontinued operations | (63) | 17,057 | |
Tax expense from discontinued operations | 14,351 | ||
Income (Loss) from Discontinued Operations | (63) | 6,770 | |
Net Income (Loss) | (19,180) | (18,257) | 92,777 |
Net income (loss) attributable to noncontrolling interests | 130 | (415) | (152) |
Net Income (Loss) Attributable to A. H. Belo Corporation | $ (19,310) | $ (17,842) | $ 92,929 |
Basic | |||
Continuing operations | $ (0.90) | $ (0.84) | $ 3.84 |
Discontinued operations | 0.31 | ||
Net income (loss) attributable to A. H. Belo Corporation | (0.90) | (0.84) | 4.15 |
Diluted | |||
Continuing operations | (0.90) | (0.84) | 3.82 |
Discontinued operations | 0.31 | ||
Net income (loss) attributable to A. H. Belo Corporation | $ (0.90) | $ (0.84) | $ 4.13 |
Number of common shares used in the per share calculation: | |||
Basic | 21,620,539 | 21,408,940 | 21,899,602 |
Diluted | 21,620,539 | 21,408,940 | 22,006,022 |
Consolidated Statements of Comp
Consolidated Statements of Comprehensive Income (Loss) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2016 | Dec. 31, 2015 | Dec. 31, 2014 | |
Consolidated Statements of Comprehensive Income (Loss) [Abstract] | |||
Net Income (Loss) | $ (19,180) | $ (18,257) | $ 92,777 |
Other Comprehensive Income (Loss): | |||
Actuarial gains (losses) | (810) | 2,742 | (49,228) |
Amortization of actuarial (gains) losses, net of tax | (56) | 16,183 | 6,954 |
Total other comprehensive income (loss) | (866) | 18,925 | (42,274) |
Comprehensive Income (Loss) | (20,046) | 668 | 50,503 |
Comprehensive income (loss) attributable to noncontrolling interests | 130 | (415) | (152) |
Total Comprehensive Income (Loss) Attributable to A. H. Belo Corporation | $ (20,176) | $ 1,083 | $ 50,655 |
Consolidated Balance Sheets
Consolidated Balance Sheets - USD ($) $ in Thousands | Dec. 31, 2016 | Dec. 31, 2015 |
Current assets: | ||
Cash and cash equivalents | $ 80,071 | $ 78,380 |
Accounts receivable (net of allowance of $1,115 and $1,441 at December 31, 2016 and December 31, 2015, respectively) | 29,114 | 31,502 |
Inventories | 3,386 | 4,052 |
Prepaids and other current assets | 9,553 | 9,415 |
Total current assets | 122,124 | 123,349 |
Property, plant and equipment, at cost | 445,874 | 448,223 |
Less accumulated depreciation | (402,115) | (396,865) |
Property, plant and equipment, net | 43,759 | 51,358 |
Intangible assets, net | 4,872 | 5,778 |
Goodwill | 14,201 | 36,883 |
Other assets | 7,775 | 4,133 |
Total assets | 192,731 | 221,501 |
Current liabilities: | ||
Accounts payable | 9,036 | 12,736 |
Accrued compensation and benefits | 8,657 | 7,100 |
Other accrued expense | 6,318 | 4,712 |
Advance subscription payments | 13,243 | 14,424 |
Total current liabilities | 37,254 | 38,972 |
Long-term pension liabilities | 54,843 | 57,446 |
Other post-employment benefits | 2,329 | 2,489 |
Deferred income taxes, net | 1,046 | |
Other liabilities | 6,483 | 1,277 |
Total liabilities | 100,909 | 101,230 |
Noncontrolling interest - redeemable | 2,670 | 1,421 |
Shareholders' equity: | ||
Preferred stock, $.01 par value; Authorized 2,000,000 shares; none issued | ||
Treasury stock, Series A, at cost; 1,416,881 shares held at December 31, 2016 and December 31, 2015 | (11,233) | (11,233) |
Additional paid-in capital | 499,552 | 500,449 |
Accumulated other comprehensive loss | (39,308) | (38,442) |
Accumulated deficit | (361,324) | (333,222) |
Total shareholders’ equity attributable to A. H. Belo Corporation | 87,918 | 117,781 |
Noncontrolling interests | 1,234 | 1,069 |
Total shareholders’ equity | 89,152 | 118,850 |
Total liabilities and shareholders’ equity | 192,731 | 221,501 |
Series A | ||
Shareholders' equity: | ||
Common stock, $.01 par value; Authorized 125,000,000 shares | 207 | 205 |
Series B | ||
Shareholders' equity: | ||
Common stock, $.01 par value; Authorized 125,000,000 shares | $ 24 | $ 24 |
Consolidated Balance Sheets (Pa
Consolidated Balance Sheets (Parenthetical) - USD ($) $ in Thousands | Dec. 31, 2016 | Dec. 31, 2015 |
Allowance for doubtful accounts receivable | $ 1,115 | $ 1,441 |
Preferred stock, par value | $ 0.01 | $ 0.01 |
Preferred stock, shares authorized | 2,000,000 | 2,000,000 |
Preferred stock, shares issued | 0 | 0 |
Common stock, par value | $ 0.01 | $ 0.01 |
Common stock, shares authorized | 125,000,000 | 125,000,000 |
Series A | ||
Common stock, shares, issued | 20,620,461 | 20,522,503 |
Series B | ||
Common stock, shares, issued | 2,472,680 | 2,387,509 |
Treasury Stock [Member] | Series A | ||
Treasury stock Series A, shares held | 1,416,881 | 1,416,881 |
Consolidated Statements of Shar
Consolidated Statements of Shareholders' Equity - USD ($) $ in Thousands | Common Stock [Member]Series A | Common Stock [Member]Series B | Common Stock [Member] | Additional Paid-in Capital [Member] | Treasury Stock [Member]Series A | Treasury Stock [Member] | Accumulated Other Comprehensive Loss [Member] | Accumulated Deficit [Member] | Noncontrolling Interests [Member] | Total |
Beginning Balance at Dec. 31, 2013 | $ 223 | $ 496,682 | $ (3,113) | $ (15,093) | $ (310,099) | $ 176 | $ 168,776 | |||
Beginning Balance, Shares Common Stock at Dec. 31, 2013 | 19,931,599 | 2,397,155 | ||||||||
Beginning Balance, Treasury Stock at Dec. 31, 2013 | (495,200) | |||||||||
Net income (loss) | 92,929 | (152) | 92,777 | |||||||
Other comprehensive income (loss) | (42,274) | (42,274) | ||||||||
Capital contributions from noncontrolling interests | 232 | 232 | ||||||||
Treasury stock purchases, shares | (449,436) | |||||||||
Treasury stock purchases | (4,974) | (4,974) | ||||||||
Issuance of shares for restricted stock units, shares | 210,522 | |||||||||
Issuance of shares for restricted stock units | 2 | (2) | ||||||||
Issuance of shares for stock option exercises, shares | 190,462 | |||||||||
Issuance of shares for stock option exercises | 2 | 939 | 941 | |||||||
Excess tax benefit on share-based compensation | 933 | 933 | ||||||||
Share-based compensation | 768 | 768 | ||||||||
Conversion of Series B to Series A, shares | 8,918 | (8,918) | ||||||||
Dividends | (91,160) | (91,160) | ||||||||
Ending Balance at Dec. 31, 2014 | 227 | 499,320 | (8,087) | (57,367) | (308,330) | 256 | 126,019 | |||
Ending Balance, Shares Common Stock at Dec. 31, 2014 | 20,341,501 | 2,388,237 | ||||||||
Ending Balance, Shares Treasury Stock at Dec. 31, 2014 | (944,636) | |||||||||
Net income (loss) | (17,842) | (415) | (18,257) | |||||||
Other comprehensive income (loss) | 18,925 | 18,925 | ||||||||
Capital contributions from noncontrolling interests | 1,210 | 1,210 | ||||||||
Treasury stock purchases, shares | (472,245) | |||||||||
Treasury stock purchases | (3,146) | (3,146) | ||||||||
Issuance of shares for restricted stock units, shares | 162,274 | |||||||||
Issuance of shares for restricted stock units | 2 | (2) | ||||||||
Issuance of shares for stock option exercises, shares | 18,000 | |||||||||
Issuance of shares for stock option exercises | 71 | 71 | ||||||||
Excess tax benefit on share-based compensation | 557 | 557 | ||||||||
Share-based compensation | 605 | 605 | ||||||||
Redeemable non-controlling interests | (102) | 18 | (84) | |||||||
Conversion of Series B to Series A, shares | 728 | (728) | ||||||||
Dividends | (7,050) | (7,050) | ||||||||
Ending Balance at Dec. 31, 2015 | 229 | 500,449 | (11,233) | (38,442) | (333,222) | 1,069 | 118,850 | |||
Ending Balance, Shares Common Stock at Dec. 31, 2015 | 20,522,503 | 2,387,509 | ||||||||
Ending Balance, Shares Treasury Stock at Dec. 31, 2015 | (1,416,881) | |||||||||
Net income (loss) | (19,310) | 77 | (19,233) | |||||||
Other comprehensive income (loss) | (866) | (866) | ||||||||
Distributions to noncontrolling interests | (308) | $ (308) | ||||||||
Capital contributions from noncontrolling interests | (396) | 396 | ||||||||
Issuance of shares for restricted stock units, shares | 97,203 | |||||||||
Issuance of shares for restricted stock units | 1 | (1) | ||||||||
Issuance of shares for stock option exercises, shares | 85,926 | 85,926 | ||||||||
Issuance of shares for stock option exercises | 1 | 155 | $ 156 | |||||||
Share-based compensation | 640 | 640 | ||||||||
Redeemable non-controlling interests | (1,295) | (1,295) | ||||||||
Conversion of Series B to Series A, shares | 755 | (755) | ||||||||
Dividends | (8,792) | (8,792) | ||||||||
Ending Balance at Dec. 31, 2016 | $ 231 | $ 499,552 | $ (11,233) | $ (39,308) | $ (361,324) | $ 1,234 | $ 89,152 | |||
Ending Balance, Shares Common Stock at Dec. 31, 2016 | 20,620,461 | 2,472,680 | ||||||||
Ending Balance, Shares Treasury Stock at Dec. 31, 2016 | (1,416,881) |
Consolidated Statements of Cash
Consolidated Statements of Cash Flows - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2016 | Dec. 31, 2015 | Dec. 31, 2014 | |
Operating Activities | |||
Net Income (Loss) | $ (19,180) | $ (18,257) | $ 92,777 |
Adjustments to reconcile net income (loss) to net cash provided by (used for) operating activities: | |||
(Income) loss from discontinued operations | 63 | (6,770) | |
Depreciation and amortization | 11,619 | 12,864 | 14,018 |
Net periodic pension and other post-employment (benefit) expense | (3,538) | 10,423 | 3,479 |
Contributions to defined benefit pension plans | (29,927) | ||
Equity method investment (gain) loss in excess of dividends | 1,440 | (18,677) | |
Share-based compensation | 640 | 605 | 702 |
Deferred income taxes | (1,046) | (1,572) | 780 |
(Gain) loss on investment related activity | 200 | (1,045) | (78,762) |
(Gain) loss on disposal of fixed assets | (1,950) | 478 | (2,787) |
Goodwill impairment | 22,682 | ||
Other operating activities | 405 | (672) | |
Changes in working capital and other operating assets and liabilities, net of acquisitions | |||
Accounts receivable | 2,388 | 2,894 | 1,002 |
Inventories, prepaids and other current assets | 528 | (144) | (2,138) |
Other assets | (2,592) | (363) | 343 |
Accounts payable | (3,700) | 85 | (813) |
Compensation and benefit obligations | 1,777 | (2,133) | (2,564) |
Other accrued expenses | 1,060 | (9,052) | (4,304) |
Advanced subscription payments | (1,181) | (1,470) | 1,052 |
Other post-employment benefits | (91) | (57) | |
Net cash provided by (used for) continuing operations | 7,616 | (4,779) | (33,318) |
Net cash provided by (used for) discontinued operations | (24) | 6,856 | |
Net cash provided by (used for) operating activities | 7,616 | (4,803) | (26,462) |
Investing Activities | |||
Acquisition costs, net of cash acquired | (14,110) | ||
Sales of assets | 5,636 | 5,866 | 10,085 |
Purchases of assets | (6,597) | (7,572) | (7,844) |
Other investment related proceeds | 1,046 | 100,980 | |
Purchases of investments | (250) | (500) | (2,279) |
Net cash provided by (used for) continuing investing activities | (1,211) | (15,270) | 100,942 |
Net cash provided by discontinued investing activities | 45,561 | ||
Net cash provided by (used for) investing activities | (1,211) | (15,270) | 146,503 |
Financing Activities | |||
Dividends paid | (7,029) | (57,200) | (41,012) |
Proceeds from other financing activities | 2,566 | ||
Distributions to noncontrolling interests | (407) | ||
Purchases of treasury stock | (3,146) | (4,974) | |
Proceeds from exercise of stock options | 156 | 71 | 941 |
Excess tax benefit on share-based compensation | 557 | 933 | |
Capital contributions from noncontrolling interests | 49 | ||
Net cash used for financing activities | (4,714) | (59,718) | (44,063) |
Net increase (decrease) in cash and cash equivalents | 1,691 | (79,791) | 75,978 |
Cash and cash equivalents, beginning of period | 78,380 | 158,171 | 82,193 |
Cash and cash equivalents, end of period | $ 80,071 | $ 78,380 | $ 158,171 |
Significant Accounting Policies
Significant Accounting Policies and Recently Issued Accounting Standards | 12 Months Ended |
Dec. 31, 2016 | |
Significant Accounting Policies and Recently Issued Accounting Standards [Abstract] | |
Significant Accounting Policies and Recently Issued Accounting Standards | Note 1: Significant Accounting Policies and Recently Issued Accounting Standards Description of Business. A. H. Belo Corporation and subsidiaries are referred to collectively herein as “A. H. Belo” or the “Company.” The Company, headquartered in Dallas, Texas, is a leading local news and information publishing company with commercial printing, distribution and direct mail capabilities, as well as expertise in emerging media and digital marketing. With a continued focus on extending the Company’s media platform, A. H. Belo deliver s news and information in inno vative ways to a broad spectrum of audiences with diverse interests and lifestyles. The Company publishes The Dallas Morning News ( www.dallasnews.com ), Texas’ leading newspaper and winner of nine Pulitzer Prizes; the Denton Record-Chronicle ( www.dentonrc.com ), a daily newspaper operating in Denton, Texas, and various niche publications targeting specific audiences. A. H. Belo also offers digital marketing solutions through DMV Digital Holdings Company (“DMV Holdings”) and Your Speakeasy, LLC (“Speakeasy”), and provides event activation, promotion and marketing services through DMN CrowdSource LLC (“CrowdSource”) . Basis of Presentation. The consolidated financial statements included herein include adjustments of a normal recurring nature which, in the Company’s opinion, are necessary to present fairly the consolidated financial information as of and for the periods indicated. All significant intercompany balances and transactions have been eliminated in consolidation. A. H. Belo consolidates the financial results of the entities in which it has controlling financial interests, including DMV Holdings and Speakeasy , in which the Company holds ownership percentages of 80 percent and 70 percent, respectively. As a consequence, the assets and liabilities of such entities are presented on a consolidated basis in A. H. Belo’s financial statements. All dollar amounts presented herein, except share and per share amounts, are in thousands, unless the context indicates otherwise. The preparation of financial statements in conformity with accounting principles generally accepted in the United States of America (“GAAP”) requires management to make estimates and assumptions that affect (i) the reported amounts of assets and liabilities, (ii) the disclosure of contingent assets and liabilities known to exist as of the date the financial statements are published, and (iii) the reported amount of net operating revenues and expenses recognized during the periods presented. Adjustments made with respect to the use of estimates often relate to improved information not previously available. Uncertainties with respect to such estimates and assumptions are inherent in the preparation of financial statements; accordingly, actual results could differ from these estimates. Cash and Cash Equivalents. The Company considers all highly liquid instruments purchased with original maturities of three months or less to be cash equivalents. Accounts Receivable. Accounts receivable are reported net of a valuation reserve that represents an estimate of amounts considered uncollectible. The Company estimates the allowance for doubtful accounts based on historical write-off experience and t he Company’s knowledge of the customers’ ability to pay amounts due. Accounts are written-off after all collection efforts fail; generally, after one year has expired. Expense for such uncollectible amounts is included in other production, distribution and operating costs. Bad debt expense for 2016 and 2015 was $ 1,712 and $ 2,168 , respectively. Write-offs, net of recoveries and other adjustments for 2016 and 2015 were $2,039 and $1,989, respectively. Risk Concentration. A significant portion of the Company’s customer base is concentrated within the North Texas geographical area. The Company generally extends credit to customers, and the ultimate collection of accounts receivable could be affected by the national and local economy. Management continually performs credit evaluations of its customers and may require cash in advance or other special arrangements from certain customers. The Company maintains an allowance for losses based upon the collectability of accounts receivable. Management does not believe significant credit risk exists that could have a material adverse effect on the Company’s consolidated financial condition, liquidity or results of operations. Inventories. Inventories, consisting primarily of newsprint, ink and other supplies used in printing newspapers, are recorded at the lower of cost or market value. Cost is determined by the weighted average purchase p rice of the inventory acquired. Property, Plant and Equipment. The Company records property, plant and equipment at cost or its fair value if acquired through a business acquisition or non-monetary exchange. Depreciation is recorded on a straight-line basis over the estimated useful lives of the assets and depreciable assets are reviewed to ensure the remaining useful life of the assets continues to be appropriate. An adjustment resulting from a change in the estimated useful life of an asset is recorded to depreciation expense on a prospective basis. The table below sets forth property, plant and equipment by type. December 31, Estimated 2016 2015 Useful Lives Land $ 11,384 $ 16,066 Buildings and improvements 133,441 133,355 5 - 30 years Publishing equipment 217,221 214,608 3 - 20 years Other 81,724 82,530 3 - 10 years Construction in process 2,104 1,664 Total 445,874 448,223 Less accumulated depreciation (402,115) (396,865) Property, plant and equipment, net $ 43,759 $ 51,358 Goodwill. Goodwill is recorded at the reporting unit level based on the excess fair value of prior business acquisitions over the fair value of the assets and liabilities acquired. Reporting units of the Company are based on its internal reporting structure and represent a reporting level below an operating segment. Unless qualitative factors allow the Company to conclude it is more - likely - than - not that the fair value of the reporting unit exceeds its carrying value, goodwill is tested for impairment by estimating the fair value of the reporting unit. If the fair value of the reporting unit is less than its carrying value, the fair value for the reporting unit ’ s underlying assets and liabilities is determined and goodwill is adjusted accordingly. In determining the fair value for a reporting unit , the Company considers recent stock and sales transaction prices of peer group companies as well as the present value of expected future cash flows of the reporting unit. Significant assumptions include sales and expense growth rates, discount rates, capital expenditures and the impact of current market conditions. These estimates could be materially impacted by changes in market conditions. The Company performs the goodwill impairment test as of December 31 each fiscal year or when changes in circumstances indicate an impairment event may have occurred. Impairment charges represent noncash charges and do not affect the Company’s liquidity, cash flows from operating activities or have any effect on future operations. The Company conducted the annual goodwill impairment test as of December 31, 2016, for all reporting units. This test, which was based on the Company’s most recent cash flow forecast, indicated that the P ublishing reporting unit ’s carrying value exceeded its estimated fair value. Accordingly, the Company recorded a non cash goodwill impairment charge of $22,682 in the fourth quarter of 2016, fully impairing the Publishing reporting unit ’s goodwill. Long-Lived Assets. The Company evaluates its ability to recover the carrying value of property, plant and equipment and finite-lived intangible assets, using the lowest level of cash flows associated with the assets, which are grouped based on the Company’s intended use of these assets. This evaluation is performed whenever a change in circumstances indicates that the carrying value of an asset group may not be recoverable . If the analysis of undiscounted future cash flows indicates the carrying value of the long-lived assets cannot be recovered, the assets are adjusted to the lower of its carrying value or fair value. Investments. The Company owns certain equity securities in companies in which it does not exercise control. These investments are recorded under the cost method and the Company recognizes income or loss upon the receipt of dividends or distributions, or upon liquidation of the investment. The Company evaluates its ability to recover the carrying value of cost method investments based upon the financial strength of the investee. If the Company determines the carrying value is not recoverable, an impairment charge is recorded for the difference between the fair value of the investment and the carrying value. For those investments where the Company is able to exercise significant influence over the investee as defined under ASC 323 – Equity Method and Joint Ventures , the Company accounts for the investment under the equity method of accounting, recognizing its share of the investee’s income or loss as a component of earnings. As of December 31, 2016, the Company did not have any equity method investments. In the fourth quarter of 2015, the Company’s ownership interest in Wanderful Media, LLC (“Wanderful”) decreased to less than 20 percent of the outstanding membership interests of Wanderful and the Company no longer exerted significant influence over Wanderful . Accordingly, the Company discontinued the use of the equity method of accounting for the investment in Wanderful, and began accounting for the investment under the cost method. In the fourth quarter of 2016, the Company abandoned its remaining ownership interest in Wanderful. Pension. The Company follows accounting guidance for single - employer defined benefit plans. Plan assets and the projected benefits obligation are measured each December 31, and the Company records as an asset or liability the net funded position of the plans. Certain changes in actuarial valuations related to returns on plan assets and projected benefit obligations are recorded to accumulated other comprehensive income (loss) and are amortized to net periodic pension expense over the weighted average remaining life of plan participants, to the extent the cumulative balance in accumulated other comprehensive income (loss) exceeds 10 percent of the greater of the respective plan’s (a) projected benefit obligation or (b) the market-related value of the plan’s assets. Net periodic pension expense is recognized each period by accruing interest expense on the projected benefit obligation and accruing a return on assets associated with the plan assets. Participation in and accrual of new benefits to participants has been frozen since 2007 and, accordingly, on-going service costs are not a component of net periodic pension expense. From time to time, the Company-sponsored plans may settle pension obligations with certain plan participants through the plans’ master trust as part of its de-risking strategies. The gains or losses associated with settlements of plan obligations to participants are recognized to earnings if such settlements exceed the interest component of net periodic pension cost for the year. Otherwise, such amounts are included in actuarial gains (losses) in accumulated other comprehensive income (loss). R e-measurement of plan assets and liabilities upon a significant settlement or curtailment event is performed based on the values of the month-end closest to the event. Long-Term Incentive Plan. The Company sponsors a long-term incentive plan (the “Plan”) under which it issues restricted stock units (“RSUs”) and cash awards to directors and certain employees of the Company. The fair value of awards issued under the Plan is recognized to expense over the requisite service period. The fair value of RSUs is established at the closing price of the Company’s common stock on the date of grant. Vested RSUs are redeemed 60 percent in A. H. Belo Series A common stock and 40 percent in cash over a period of up to three years. The Company records a liability for the portion of the outstanding RSUs to be redeemed in cash, which is adjusted to its fair value each period, based on the closing price of the Company’s common stock. Under the long-term incentive plan, options can be issued to directors and employees of the Company. All outstanding options issued against the Company’s stock were fully vested and recognized to earnings a s of December 31, 2016. Shareholders’ Equity. The Company authorized the issuance of shares of Series A and Series B common stock. Series A common stock has one vote per share and Series B common stock has 10 votes per share. Shares of Series B common stock are convertible at any time on a share-for-share basis into shares of Series A common stock, but not vice versa. The Company is authorized to grant stock option and RSU awards to employees and directors of the Company. Upon vesting of RSUs, shares of Series A common stock are issued. Upon the exercise of stock options, Series A common stock is issued if the holder of the stock options executes a simultaneous exercise and sale. If the holder of the stock option chooses not to sell the shares, Series B common stock is issued. In 2012, the Company’s board of directors authorized the purchase of the A. H. Belo Series A or Series B common stock, for use other than retirement, through open market purchases, privately negotiated transactions or otherwise. The Company’s agreement to repurchase its shares was terminated in December 2015. Treasury stock acquired under the repurchase program is recorded at cost, reducing shareholders’ equity. The acquired shares are available for sale on the open market or for settlement of obligations related to its share-based awards. Accumulated other comprehensive loss consists of actuarial gains and losses associated with the A. H. Belo Pension Plans (“Pension Plans”) and other post-employment benefit (“OPEB”) plans. The cumulative balances are amortized to earnings over the weighted average remaining life expectancy of the participants to the extent such balances exceed 10 percent of the greater of the respective plan’s (a) projected benefit obligation or (b) the market-related value of the plan’s assets. The Company discloses amounts reclassified from accumulated other comprehensive loss to net income in Note 8 - Shareholders' Equity . Revenue Recognition. The Company’s principal sources of revenue are the advertising space in published issues of its newspapers and on the Company’s and third-party websites, the sale of newspapers to distributors and individual subscribers, as well as amounts charged to customers for commercial printing, distribution and direct mail. Advertising revenue is recorded net of agency commission at the time the advertisements are published in the newspaper and ratably over the period of time the advertisement is placed on the websites. Marketing services revenue is recognized at the time the services are rendered. Proceeds from subscriptions are deferred and included in revenue ratably over the term of the subscriptions. Subscription revenue under buy-sell arrangements with distributors is recorded based on the net amount received from the distributor, whereas subscription revenue under fee-based delivery arrangements with distributors is recorded based on the amount received from the subscriber. Commercial printing and direct mail revenue is recorded when the product is distributed or shipped. Income Taxes. The Company uses the asset and liability method of accounting for income taxes and recognizes deferred tax assets and liabilities based on the difference between the financial statement and tax basis of assets and liabilities using enacted tax rates. The Company establishes a valuation allowance if it is more - likely - than - not that the deferred tax assets will not be realized. The factors used to assess the likelihood of realization of the deferred tax asset s include reversal of future deferred tax liabilities, available tax planning strategies , future taxable income and taxable income in prior carryback years. In 2015, the FASB issued ASU 2015-17 allowing companies to present deferred tax assets and liabilities as noncurrent in a classified balance sheet. The Company elected to early-adopt this presentation in its Consolidated Balance Sheet as of December 31, 2015. The Company evaluates any uncertain tax positions each reporting period by tax jurisdiction to determine if it is more - likely - than - not that the tax position will not be sustained on examination by the taxing authorities, based on the technical merits of the position. The tax benefits recognized in the financial statements for such positions are measured based on the largest benefit that has a greater than 50 percent likelihood of being realized upon ultimate settlement. If a net operating loss or other tax credit carry forward exists, the Company records the unrecognized tax benefits for such tax positions as a reduction to a deferred tax asset. Otherwise, the unrecognized tax benefits are recorded as a liability. The Company records a liability for uncertain tax positions taken or expected to be taken in a tax return. Any change in judgment related to the expected ultimate resolution of uncertain tax positions is recognized in earnings in the period in which such change occurs. Interest and penalties, if any, related to unrecognized tax benefits are recorded in interest expense. Use of Estimates. Company management makes estimates and assumptions that affect the amounts and disclosures reported in its financial statements and include valuation allowances for doubtful accounts, uncertain tax positions and deferred tax assets, fair value measurements related to assets held for sale, pension plan assets and equity based compensation, actuarial liabilities related to self-insured risks, pension plan obligations and assumptions related to impairment and recovery of goodwill and long - lived assets. Estimates are based on past experience and other considerations reasonable under the circumstances. Actual results may differ from these estimates. Segments. The Company operates under two reportable segments. The Publishing (“Publishing”) segment includes the operating activities associated with the Company’s print operations and its related websites. All other activities are included in the marketing, event marketing and other services segment (“MEMO”). This segment primarily includes sales of advertising delivered outside the Company’s news platforms, social media management services, and other marketing services designed to provide integrated solutions for optimizing businesses marketing challenges and opportunities. The segment also includes the operations related to the Company’s event marketing services. Fair Value Measurements. The Company’s financial instruments, including cash, cash equivalents, accounts receivable, interest receivable, accounts payable and amounts due to customers are carried at cost, which approximates its fair value because of the short-term nature of these instruments. Recently Adopted Accounting Pronouncements. In April 2015, the Financial Accounting Standards Board (“FASB”) issued Accounting Standards Update (“ASU”) 2015-05 – Intangibles – Goodwill and Other – Internal-Use Software (Subtopic 350-40): Customer’s Accounting for Fees Paid in a Cloud Computing Arrangement. This update provides guidance to customers about whether a cloud computing arrangement includes a software license. If a cloud computing arrangement includes a software license, then the customer should account for the software license element of the arrangement consistent with the acquisition of other software licenses. If a cloud computing arrangement does not include a software license, the customer should account for the arrangement as a service contract. The standard became effective for annual and interim reporting periods beginning after December 15, 2015. The adoption of this standard did not have a material impact on the Company’s consolidated financial statements. In September 2015, the FASB issued ASU 2015-16 – Business Combinations (Topic 805): Simplifying the Accounting for Measurement-Period Adjustments. This update requires that an acquirer in a business combination recognize adjustments to provisional amounts that are identified during the measurement period in the reporting period in which the adjustment amounts are determined. The acquirer is required to record, in the same period’s financial statements, the effect on earnings, if any, as a result of the change to the provisional amounts, calculated as if the accounting had been completed at the acquisition date. The amendments in this update are effective for fiscal years beginning after December 15, 2015, including interim periods within those fiscal years. The amendments in this update should be applied prospectively to adjustments to provisional amounts that occur after the effective date of this update with earlier application permitted for financial statements that have not been issued. The Company adopted this standard in the fourth quarter of 2015. Accordingly, the Company has not retroactively accounted for the changes in the purchase price allocation for DMV Holdings, which was finalized in the fourth quarter of 2015. In March 2016, the FASB issued ASU 2016-09 – Compensation – Stock Compensation (Topic 718): Improvements to Employee Share-Based Payment Accounting. The amendments in this update affect all entities that issue share-based payment awards to their employees. The areas for simplification in this update involve several aspects of the accounting for share-based payment transactions, including the income tax consequences, classification of awards as either equity or liabilities, and classification on the statement of cash flows. The guidance will be effective for fiscal years beginning after December 15, 2016, including interim periods within those fiscal years. Early adoption is permitted in any interim or annual period. T he Company early adopted this standard prospectively in the first quarter of 2016. Adoption of this standard did not materially impact the Company's consolidated financial statements. New Accounting Pronouncements. The FASB has issued the following accounting pronouncements and guidance which may be applicable to the Company but have not yet become effective. In May 2014, the FASB issued ASU 2014-09 – Revenue from Contracts with Customers (Topic 606). This guidance prescribes a single comprehensive model for entities to use in the accounting of revenue arising from contracts with customers . The core principle contemplated by this new guidance is that an entity should recognize revenue to depict the transfer of promised goods or services to customers in an amount reflecting the consideration the entity expects to be entitled in exchange for those goods or services. New disclosures about the nature, amount, timing and uncertainty of revenue and cash flows arising from contracts with customers are also required . Since May 2014 , the FASB issued clarifying updates to the new standard specifically to address certain core principles including the identification of performance obligations, licensing guidance, the assessment of the collectability criterion, the presentation of taxes collected from customers, noncash considerations, contract modifications, and completed contracts at transition. The new guidance will supersede virtually all existing revenue guidance under GAAP and is effective for fiscal years beginning after December 31, 2017. The Company currently anticipates adopting ASU 2 014-09 using the modified retrospective approach as of January 1, 2018. This approach consists of recognizing the cumulative effect of initially applying the standard as an adjustment to opening retained earnings. The Company is currently evaluating the impact that the updated guidance will have on the Company’s financial statements and related disclosures. The Company will utilize a bottoms-up approach to analyze the impact of the standard on the Company’s portfolio of contracts by reviewing its current accounting policies and practices to identify potential differences that would result from applying the requirements of the new standard to the Company’s existing revenue contracts. The Company expects to complete this evaluation prior to the fourth quarter of 2017. In February 2016, the FASB issued ASU 2016-02 – Leases (Topic 842). This update requires an entity to recognize a right-of-use asset and a lease liability for virtually all of its leases. The liability will be equal to the present value of lease payments. The asset will generally be based on the liability. For income statement purposes operating leases will result in straight-line expense and finance leases will result in expenses similar to current capital leases. The guidance also requires additional disclosures to enable users of financial statements to understand the amount, timing and uncertainty of cash flows arising from leases. The guidance will be effective for fiscal years beginning after December 15, 2018, including interim periods within those fiscal years and will be applied retrospectively . Early adoption is permitted. The Company is currently evaluating the requirements of this update and has not yet determined its impact on the Company’s consolidated financial statement s. |
Acquisitions
Acquisitions | 12 Months Ended |
Dec. 31, 2016 | |
Acquisitions [Abstract] | |
Acquisitions | Note 2: Acquisitions In January 2015 , the Company acquired an 80 percent voting interest in DMV Digital Holdings Company, which holds all outstanding ownership interests of three Dallas-based businesses, Distribion, Inc., Vertical Nerve, Inc. and CDFX, LLC . These businesses specialize in local marketing automation, search engine marketing, and direct mail and promotional products, respectively. The Company believes this acquisition complements the product and service offerings currently available to A. H. Belo clients, thereby strengthening the Company’s diversified product portfolio and allowing for greater penetration in a competitive advertising market. The Company’s interest in DMV Holdings was acquired for a cash purchase price of $14,110 . Transaction costs related to the purchase are a component of other production, distribution and operating costs and totaled $1,288 . The estimated fair value of the acquired businesses totaled $17,829 , of which $2,548 was attributed to noncontrolling interests. Approximately $807 of goodwill acquired is expected to be deductible for tax purposes . On March 2, 2017, the Company acquired the remaining 20 percent voting interest in DMV Holdings for $7,120 . As further discussed in Note 10 - Commitments and Contingencies and Note 11 - Redeemable Noncontrolling Interest the contribution agreement included provisions for two pro-rata distributions and an embedded put option arrangement with certain noncontrolling shareholders of DMV Holdings. The allocation of the purchase price was completed in the fourth quarter of 2015 and i s summarized as follows: Estimated Fair Value Working capital, net of acquired cash $ (80) Property, plant and equipment 57 Other intangible assets 6,470 Goodwill 12,301 Deferred tax liability (2,090) $ 16,658 Through this acquisition, the Company has been able to fulfill key marketing service functions that were previously outsourced to third-party vendors and also expand the portfolio of marketing services offe red to its existing customers. These synergies have allowed the Company to establish a more robust service offering that will allow it to establish greater market presence in this industry. Operating results of the businesses acquired have been included in the Consolidated Statements of Operations from the acquisition date forward. Revenue from marketing services is recognized at the time services are delivered and upfront fees, if any, are recognized over the life of the contractual arrangement. Operating results for 2015, related to the acquired businesses , included $10,138 of operating revenue, which included $1,137 of intercompany sales and a pretax income of $ 95 before adjusting for noncontrolling interests. Pro forma results of the Company, assuming the acquisition had occurred at the beginning of each period presented, would not be materially different from the results reported. Additionally, on February 16, 2017, the Company acquired the remaining 30 percent voting interest in Speakeasy for $2,111 . |
Segment Reporting
Segment Reporting | 12 Months Ended |
Dec. 31, 2016 | |
Segment Reporting [Abstract] | |
Segment Reporting | Note 3: Segment Reporting The Company has identified two reportable segments based on management and internal reporting structures as well as product and service offerings: Publishing (“Publishing”) and Marketing, Event Marketing and Other Services (“MEMO ”). The Publishing segment includes the Company’s core print operations associated with its newspapers, niche publications and related websites. These operations generate revenue from sales of advertising within its newspaper and digital platforms, subscription and retail sales of newspapers and commercial printing and distribution services primarily related to national and regional newspapers and preprint advertisers. Businesses within the Publishing segment leverage production facilities, subscriber base and digital news platforms to provide additional contribution margin. The Company assesses the performance of the Publishing segment on the basis of operating profit and cash flows from operating activities. In 2015, the Company initiated cost reductions through a voluntary severance option offered to certain newsroom employees and other headcount reductions. Through these initiatives, the Company eliminated 70 positions resulting in severance and other related costs of approximately $2,891 in employee compensation and benef its during 2015. The MEMO segment is comprised of the Company’s marketing, event marketing and other businesses. Marketing services and product offerings include multi-channel marketing services, targeted-channel marketing services, marketing analytics, content development, social media management and other consulting services. Marketing services also include non-digital marketing products, including sales of business promotional items and sales of pay-for-performance services directed primarily to other newspaper companies. Marketing services include the operations of DMV Holdings, Speakeasy and Proven Performance Media, as well as its operating division doing business as Connect and its cars.com sales division. Event marketing includes the operations of CrowdSource, which provides event activation, promotion and marketing services. The Company assesses the performance of the MEMO segment on the basis of revenue growth and operating profit in conjunction with the expansion of these businesses within their respective markets. The following tables show summarized financial information for the Company’s reportable segments. Years Ended December 31, 2016 2015 2014 Revenue Publishing $ 215,559 $ 236,166 $ 250,112 MEMO 44,425 35,942 22,676 Total $ 259,984 $ 272,108 $ 272,788 Operating Income (Loss) Publishing $ (26,925) $ (18,350) $ (9,881) MEMO 3,179 55 2,195 Total $ (23,746) $ (18,295) $ (7,686) Noncash Expenses Publishing Depreciation $ 10,633 $ 11,401 $ 13,672 Amortization — 120 121 Goodwill impairment 22,682 — — Pension settlement — 14,964 7,648 Total $ 33,315 $ 26,485 $ 21,441 MEMO Depreciation $ 80 $ 114 $ 148 Amortization 906 1,229 77 Total $ 986 $ 1,343 $ 225 December 31, 2016 2015 Total Assets Publishing $ 168,641 $ 196,912 MEMO 24,090 24,589 Total $ 192,731 $ 221,501 |
Goodwill and Intangible Assets
Goodwill and Intangible Assets | 12 Months Ended |
Dec. 31, 2016 | |
Goodwill and Intangible Assets [Abstract] | |
Goodwill and Intangible Assets | Note 4: Goodwill and Intangible Assets The Company records goodwill and intangible assets from previous acquisitions. In 2015, the Company reorganized reporting units, aligning resources consistent with management’s operating strategies. The Company’s Publishing segment operates as a single reporting unit and the MEMO segment includes reporting units for marketing services operations and event marketing operations. The table below sets forth the goodwill and other intangible assets by reportable segment as of December 31, 2016 and 2015. December 31, 2016 2015 Goodwill Publishing $ — $ 22,682 MEMO 14,201 14,201 Total $ 14,201 $ 36,883 Intangible Assets MEMO Cost $ 6,710 $ 6,710 Accumulated Amortization (1,838) (932) Net Carrying Value $ 4,872 $ 5,778 I ntangible assets consist of $5,190 of customer relationships with estimated useful lives of 10 years and $1,520 of developed technology with a n estimated useful life of five years. Aggregate a mortization expense was $906 and $1,349 for 2016 and 2015 , respectively. Annual amortization expense is expected to approximate $799 in 2017 through 2019 , and approximately $495 thereafter until the carrying value is fully amortized. The Company tested goodwill for impairment as of December 31, 2016 at the reporting unit level using a discounted cash flow methodology with a peer-based, risk-adjusted weighted average cost of capital, combined with a market approach using peer-based earnings multiples. The Company believes the use of a discounted cash flow approach, combined with the market approach, is the most reliable indicator of the estimated fair values of the businesses. Because the Company’s annual test indicated that the Publishing reporting unit’s carrying value exceeded its estimated fair value, a second phase of the goodwill impairment test (“Step 2”) was performed specific to the Publishing reporting unit. Under Step 2, the fair value of the Publishing reporting unit’s assets and liabilities were estimated, including intangible assets, for the purpose of deriving an estimate of the implied fair value of goodwill. The implied fair value of goodwill was then compared to the recorded goodwill to determine the amount of the impairment. Upon completion of the annual test, the Publishing reporting unit’s goodwill was determined to be impaired, and the Company recorded a noncash goodwill impairment charge of $22,682 in the fourth quarter of 2016, fully impairing the Publishing reporting unit’s goodwill. |
Long-term Incentive Plan
Long-term Incentive Plan | 12 Months Ended |
Dec. 31, 2016 | |
Long-term Incentive Plan [Abstract] | |
Long-term Incentive Plan | Note 5 : Long-term Incentive Plan A. H. Belo sponsors a long-term incentive plan under which 8,000,000 shares of the Company’s Series A and Series B common stock are authorized for equity-based awards. Awards may be granted to A. H. Belo employees and outside directors in the form of non-qualified stock options, incentive stock options, restricted share awards, RSUs, performance shares, performance units or stock appreciation rights. In addition, stock options may be accompanied by full and limited stock appreciation rights. Rights and limited stock appreciation rights may also be issued without accompanying stock options. Awards under the P lan were also granted to holders of stock options issued by A. H. Belo’s former parent company in connection with the Company’s separation from its former parent in 2008. Stock Options. S tock options granted under the Plan are fully vested and exercisable . No options have been granted by the Company since 2009, and all compensation expense associated with stock options has been fully recognized as of December 31, 2016. The table below sets forth a summary of stock option activity under the P lan. Number of Options WeightedAverage Exercise Price Outstanding at December 31, 2015 259,311 $ 8.37 Exercised (85,926) 1.81 Canceled (58,406) 18.33 Outstanding at December 31, 2016 114,979 8.21 The aggregate intrinsic value of options exercised in 2016 , 2015 and 2014 was $300 , $100 and $1,099 , respectively. The aggregate intrinsic value of outstanding options at December 31, 2016 was $13 . The weighted-average remaining contractual life of the Company’s stock options was 1.4 years as of December 31, 2016. Restricted Stock Units. The Company’s RSUs have a service condition and , subject to retirement eligibility, vest over a period of up to three years. Vested RSUs are redeemed 60 percent in A. H. Belo Series A common stock and 40 percent in cash over a period of up to three years. A s of December 31, 2016 , the liability for the portion of the award s to be redeemed in cash was $769 . The table below sets forth a summary of RSU activity under the Plan . Total RSUs Issuance of Common Stock RSUs Redeemed in Cash Cash Payments at Closing Price of Stock Weighted- Average Price on Date of Grant Non-vested at December 31, 2015 92,355 $ 7.13 Granted 202,955 5.47 Vested and outstanding (155,511) 6.00 Vested and issued (18,668) 11,196 7,472 $ 44 8.10 Non-vested at December 31, 2016 121,131 5.65 In 2016, the Company issued 86,007 shares of Series A common stock and 57,341 shares were redeemed in cash for RSUs that were previously vested as of December 31, 2015. In addition, there were 2 37 , 074 and 224,911 RSU s that were vested and outstanding as of December 31, 2016 and 2015, respectively. The fair value of RSU grant s is determined using the closing trading price of the Company’s Series A common stock on the grant date. As of December 31, 2016 , unrecognized compensation expense related to the non-vested RSUs totaled $ 320 , which is expected to be recognized over a weighted-average period of 1.0 years . Compensation Expense. A. H. Belo recognizes compensation expense for awards granted under the P lan over the vesting period of the award . Compensation expense related to RSUs granted under the Plan is set forth in the table below. Years Ended December 31, RSUs Redeemable in Stock RSUs Redeemable in Cash Total RSU Awards Expense 2016 $ 640 $ 580 $ 1,220 2015 605 (349) 256 2014 702 1,117 1,819 |
Income Taxes
Income Taxes | 12 Months Ended |
Dec. 31, 2016 | |
Income Taxes [Abstract] | |
Income Taxes | Note 6: Income Taxes The table below sets forth the income tax provision (benefit) related to continuing operations. Years Ended December 31, 2016 2015 2014 Current Federal $ (2,431) $ (1,726) $ 3,865 State 1,205 1,729 1,333 Total current (1,226) 3 5,198 Deferred Federal 1,514 (3,988) 28,577 State (26) (389) 646 Total deferred 1,488 (4,377) 29,223 Valuation Allowance (2,534) 2,804 (28,443) Income Tax Provision (Benefit) $ (2,272) $ (1,570) $ 5,978 The table below reconciles the income tax provision (benefit ) for continuing operations computed by applying the applicable United States federal income tax rate to the tax provision (benefit) computed at the effective income tax rate. Years Ended December 31, 2016 2015 2014 Computed expected income tax provision (benefit) $ (7,312) $ (6,917) $ 32,195 State income tax (net of federal benefit) 757 780 1,314 Valuation allowance (2,534) 2,804 (28,443) Goodwill impairment 6,266 — — Nondeductible expenses 249 493 81 Uncertain tax position reserve (7) 244 — Noncontrolling interests (40) 133 53 Other 349 893 778 Income tax provision (benefit) $ (2,272) $ (1,570) $ 5,978 Effective income tax rate 10.6% 7.9% 6.5% A tax benefit of $ 2,272 was recorded in 2016. The benefit is primarily due to deductions associated with capital losses on the sale of certain investments , which w ill be carried back to 2014 for federal income tax purposes. A tax benefit of $1,570 was recorded in 2015. The benefit was primarily derived from $2,090 of deferred tax liabilities assumed in the acquisition of DMV Holdings, which reduced the amount of valuation allowance that would have otherwise been required. A receivable was recorded in prepaid and other assets as of December 31, 2015, for f ederal net operating losses of $3,066 generated in 2015. The Company generated taxable income in 2014 as a result of the sale of its investment in Classified Ventures, LLC (“Classified Ventures”) and the sale of The Providence Journal . Accordingly, the 2014 tax provision was reduced for changes in the valuation allowance, primarily resulting from the use of the Company’s net operating loss carry forwards which totaled $19,567 . The Company made income tax payments, net of refunds, of $(906) and $11,613 in 2016 and 2015 , respectively . Tax benefits recognized in 2015 were carried back against taxes paid in 2014 for a refund of $2,930 received in 2016. Federal tax benefits recognized in 2016 in the amount of $2,976 are recorded within current assets on the Company’s Consolidated Balance Sheet as of December 31, 2016. These tax benefits are the result of the abandonment of the Company’s ownership interest in Wanderful and the sale of the Company’s equity investment in Homesnap, Inc. in the fourth quarter of 2016. Taxes paid in 2015 relate to gains on the sale of the Classified Ventures investment and the newspaper operation discussed above. In accordance with realization requirements of ASC 718 – Stock Compensation, the tax liability and additional paid in capital were reduced in 2015 and 2014 by $557 and $933 , respectively, for the value of equity compensation in excess of the compensation expense recognized. These deductions were not available to the Company prior to 2014 due to the net operating loss assets. The table below sets forth the significant components of the Company’s deferred tax liabilities and assets. December 31, 2016 2015 Deferred Tax Assets (Liabilities) Defined benefit plans $ 19,195 $ 20,106 Investments 659 4,270 Tax depreciation less than book depreciation 4,171 2,284 Expenses deductible for tax purposes in a year different from the year accrued 805 1,366 Deferred compensation and benefits 756 951 Tax amortization in excess of book amortization (848) (2,814) State taxes 106 80 Other 739 502 Total 25,583 26,745 Valuation allowance for deferred tax assets (25,583) (27,791) Net Deferred Tax Liabilities $ — $ (1,046) The presentation of net deferred tax assets and liabilities for each jurisdiction are presented as noncurrent within the Company’s C onsolidated B alance S heets. Deferred income tax balances reflect the effects of temporary differences between the carrying amounts of assets and liabilities and their tax bases and are stated at enacted tax rates expected to be in effect when the taxes are actually paid or recovered. The Company recogni zes a valuation allowance for deferred tax assets when it is more - likely - than - not that these assets will not be realized. In making this determination, all positive and negative evidence is considered, including future reversals of existing taxable temporary differences, tax planning strategies, future taxable income and taxable income in prior carryback years. Uncertain tax positions are evaluated and a liability is recognized for the tax benefit associated with uncertain positions only if it is more-likely-than-not that the positions will not be sustained upon examination by taxing authorities, based on the technical merits of the positions. The Company assesses its filing positions in all significant jurisdictions where it is required to file income tax returns for all open tax years. The Company’s federal income tax returns for the years subsequent to December 31, 2013, remain subject to examination, and income tax returns in major state income tax jurisdictions where the Company operates remain subject to examination for various periods subsequent to December 31, 2012. Additionally, the December 2014 return was amended in 2016, extending the statute of limitations associated with the 2014 filing. The Company is currently under examination by state tax jurisdictions for California and New Jersey for income taxes paid during the years ended December 31, 2012, 2013 and 2014. The Company has recorded a reserve for the tax benefit related to uncertain state tax positions existing as of December 31, 2016 . The table below sets forth a reconciliation of the beginning and ending amount of unrecognized tax benefit. 2016 Balance at January 1 $ 244 Reductions for tax positions of prior years (7) Balance at December 31 $ 237 |
Pension and Other Retirement Pl
Pension and Other Retirement Plans | 12 Months Ended |
Dec. 31, 2016 | |
Pension and Other Retirement Plans [Abstract] | |
Pension and Other Retirement Plans | Note 7 : Pension and Other Retirement Plans Defined Benefit Plans. The Company sponsors the A. H. Belo Pension Plans, which provide benefits to approximately 2,300 current and former employees of the Company. A. H. Belo Pension Plan I provides benefits to certain current and former employees primarily employed with The Dallas Morning News or the A. H. Belo corporate offices. A. H. Belo Pension Plan II provides benefits to certain former employees of The Providence Journal Company . T h is obligation was retained by the Company upon the sale of the newspaper operations of The Providence Journal . No additional benefits are accruing under the A. H. Belo Pension Plans, as future benefits were frozen. The Company was not required to make contributions to the A. H. Belo Pension Plans in 2016 and 2015 under the applicable tax and labor laws governing pension plan funding. Required and voluntary contributions of $9,927 and $20,000 , respectively, were made in 2014 , to the A. H. Belo Pension Plans, directly reducing the unfunded projected pension obligation of the Pension P lans . Actuarial gains (losses) of $(884) , $2,540 and $(49,243) were recorded to other comprehensive income in 2016 , 2015 and 2014 , respectively; see Note 8 - Shareholders' Equity for information on amounts recorded to accumulate d other comprehensive loss . In 2015, the Company-sponsored Pension Plans implemented a de-risking strategy whereby voluntary and mandatory lump - sum payments to participants may be made to decrease future benefit obligations. As part of this strategy, payments of $100,877 were made in 2015 to approximately 1,000 participants and $52,919 of payments were made in 2014 to approximately 700 participants. The lump-sum payments resulted in a favorable settlement of the projected benefit obligations of approximately $5,000 and $15,000 in 2015 and 2014, respectively. A charge to pension expense for $14,964 and $7,648 in 2015 and 2014, respectively, was recorded to reflect the amortization of losses in accumulated other comprehensive loss associated with these settlements. The obligations were funded through the Pension Plan s’ master trust account and are a component of benefit payments as shown in the table below. The Company will continue to evaluate the feasibility of additional de-risking strategies based on the economic benefits to the Company. The table below sets forth summarized financial information about the A. H. Belo Pension Plans . 2016 2015 Change in Projected Benefit Obligation Projected benefit obligation at beginning of year $ 262,027 $ 396,656 Interest cost 10,098 14,161 Actuarial (gain) loss 1,368 (27,307) Benefit payments (14,468) (121,483) Projected benefit obligation at end of year 259,025 262,027 Change in Plan Assets Fair value of plan assets at beginning of year 204,581 330,797 Return on plan assets 14,069 (4,733) Benefit payments (14,468) (121,483) Fair value of plan assets at end of year 204,182 204,581 Funded Status $ (54,843) $ (57,446) Amounts Recorded on the Balance Sheet Noncurrent liability - accrued benefit cost $ 54,843 $ 57,446 Accumulated Benefit Obligation $ 259,025 $ 262,027 Net Periodic Pension Expense (Benefit) The projected benefit obligations of the A. H. Belo Pension Plans are estimated using the Citigroup Pension Yield Curve, which is based upon a portfolio of high quality corporate debt securities with maturities that correlate to the timing of benefit payments to the Pension Plans’ participants . Future benefit payments are discounted to their present value at the appropriate yield curve rate to determine the projected benefit obligation outstanding at each year end. The y ield curve discount rate s as of December 31, 2016 and 2015 , w ere 3.8 percent and 4.0 percent, respectively . Interest expense included in net periodic pension expense (benefit) is based on the Citigroup Pension Yield Curve established at the beginning of the fiscal year. Interest expense for 2016 , 2015 and 2014 was determined using beginning of year yield curve rate of 4.0 percent . The Company assumed a 6.5 percent long-term return on the Pension P lans’ assets in 2016 , 2015 and 2014 . This return is based upon historical returns of similar investment pools having asset allocations consistent with the expected allocations of the A. H. Belo Pension Plans. Investment strategies for the Pension Plans’ assets are based upon factors such as the remaining life expectancy of participants and market risks. The table below sets forth components of net periodic pension expense (benefit) for 2016 , 2015 and 2014 . Years Ended December 31, 2016 2015 2014 Interest cost $ 10,098 $ 14,161 $ 17,320 Expected return on plans' assets (13,585) (20,033) (20,859) Amortization of actuarial loss 45 1,252 — Recognized settlement loss — 14,964 7,648 Net periodic pension expense (benefit) $ (3,442) $ 10,344 $ 4,109 Plan Assets The Company is responsible for directing the investment strategies of the A. H. Belo Pension Plans’ assets. The investment strategies fo cus on asset class diversification, liquidity to meet benefit payments and an appropriate balance of long-term investment return and risks. The long-term targeted allocation of the Pension P lans’ assets invested in equity securities and fixed-income securities is 50.0 percent and 50.0 percent, respectively . These targets are determined by matching the actuarial projections of the Pension P lans’ future liabilities and benefit payments with the expected long-term rates of return on assets and expected market risks. Investment risk is continuously monitored and Pension Plans ’ assets are rebalanced to target allocations to meet the Company’s strategy and the Pension P lans’ liquidity needs. At December 31, 2016 , the Pension P lans’ investments in equity securities and fixed income securities accounted for 44.8 percent and 55.2 percent of the total non cash holdings, respectively. The table below sets forth the A. H. Belo Pension Plans’ assets at fair value as of December 31, 2016 and 2015 , with inputs used to develop fair value measurements . Fair Value Measurements Using Total Quoted Price in Active Markets for Identical Assets (Level I) Significant Other Observable Inputs (Level II) Significant Unobservable Inputs (Level III) Description 2016 2015 2016 2015 2016 2015 2016 2015 Cash and Money Market Funds $ 1,865 $ 4,178 $ 1,865 $ 4,178 $ — $ — $ — $ — Equity Funds U.S. equity securities 58,645 62,314 — — 58,645 62,314 — — International equity securities 32,079 28,669 10,824 4,334 21,255 24,335 — — Fixed Income Funds Domestic corporate and government debt securities 52,136 54,427 — — 52,136 54,427 — — Domestic corporate debt securities 51,768 49,074 — — 51,768 49,074 — — International corporate and government debt securities 7,689 5,919 — — 7,689 5,919 — — Total $ 204,182 $ 204,581 $ 12,689 $ 8,512 $ 191,493 $ 196,069 $ — $ — Inputs and valuation techniques used to measure the fair value of Pension P lan s’ assets vary according to the type of asset being valued. Cash and money market funds, as well as exchange traded funds, are designated as Level I. Remaining equity securities and fixed income securities represent units of commingled pooled funds and fair values are based on net asset value (“NAV”) of the units of the fund determined by the fund manager. Commingled pooled funds are similar in nature to retail mutual funds, but are typically more efficient for institutional investors than retail mutual funds. As commingled pooled funds are typically only accessible by institutional investors, the NAV is not readily observable by non-institutional investors. Equity securities held through units in these funds are monitored as to issuer and industry. As of December 31, 2016 , there were no significant concentrations of equity or debt securities in any single issuer or industry. Other The table below sets forth the Company’s expected future benefit payments as of December 31, 2016 . Payment year Expected Benefit Payments 2017 $ 15,859 2018 16,030 2019 16,100 2020 16,043 2021 16,039 2022 - 2026 79,266 The Company expects to make no required contributions to the A. H. Belo Pension Plans in 2017. Other defined benefit plans A. H. Belo also sponsors other post- employment benefit plans which provide health and life insurance benefits for certain retired employees. These plans were frozen subsequent to the separation from the Company’s former parent company and no future benefits accrue. The Company recorded a liability of $1,342 and $1,429 related to the OPEB plans as of December 31, 2016 and 2015 , respectively. A net periodic benefit (cost) of $(43) , $13 an d $630 in 2016 , 2015 and 2014 , respectively, was recorded to employee compensation and benefits. The net benefit primarily represents amortization of actuarial gains (losses) and prior service costs, offset by interest expense associated with the actuarial liability. Actuarial gains of $74 , $202 and $15 were recorded to other comprehensive loss in 2016 , 2015 and 2014 , respectively. See Note 8 - Shareholders' Equity . Defined Contribution Plans. The A. H. Belo Savings Plan, a defined contribution 401(k) plan, covers substantially all employees of A. H. Belo. Participants may elect to contribute a portion of their pretax compensation as provided by the Savings P lan and the Internal Revenue Code. Employees can contribute up to 100 percent of thei r annual eligible compensation less requi red withholdings and deductions up to statutory limits. The Company provides an ongoing dollar-for-dollar match of eligible employee contributions, up to 1.5 percent of the employees’ compensat ion on a per-pay-period basis. The Company recorded expense of $977 , $1,013 and $987 in 2016 , 2015 and 2014 , respectively, for matching contributions to the Savings P lan. |
Shareholders' Equity
Shareholders' Equity | 12 Months Ended |
Dec. 31, 2016 | |
Shareholders' Equity [Abstract] | |
Shareholders' Equity | Note 8 : Shareholders’ Equity Dividends. On December 9, 2016 , the Company announced a $0.08 per share dividend to shareholders of record and holders of RSUs as of the close of business on February 10, 2017 , payable on March 3, 2017 . As of December 31, 2016 , the Company recorded $1,763 to accrue for dividends declared but not yet paid. Dividends paid in 2015 included a special dividend of $2.25 per share, declared and recorded in 2014, returning $50,148 to shareholders and holders of RSUs. On March 2, 2017 , the Company’s board of directors declared a quarterly cash dividend of $0.08 per share payable on June 2, 2017 , to shareholders of record and holders of RSUs at the close of business on May 12, 2017 . Treasury Stock. The Company repurchased shares of its common stock pursuant to a publicly announced share repurchase program by the Company’s board of directors. A total of 2,500,000 shares were authorized under the program. In December 2015, t he Company discontinued share repurchases . For the years 2015 and 2014, the Company purchased 472,245 and 449,436 shares of its Series A common stock at a total cost of $3,146 and $4,974 , respectively, under its share repurchase program. Accumulated Other Comprehensive Loss . Accumulated other comprehensive loss consists of actuarial gains and losses attributable to the A. H. Belo Pension Plans, gains and losses resulting from Pension Plans’ amendments and other actuarial experience attributable to OPEB plans. The Company records amortization of the components of accumulated other comprehensive loss in employee compensation and benefits in its Consolidated Statements of Operations. Gains and losses associated with the A. H. Belo Pension Plans are amortized over the weighted average remaining life expectancy of the Pension Plan s’ participants. Gains and losses associated with the Company’s OPEB plans are amortized over the average remaining service period of active OPEB pl ans’ participants. In 2017, the Company anticipates amortizin g $371 of net losses in accumulated other comprehensive loss related to its defined benefit Pension Plans and OPEB plans. Deferred tax assets related to amounts recorded in accumulated other comprehensive loss in 2016 and 2015 are fully reserved. See Note 6 - Income Taxes . The table below sets forth the changes in accumulated other comprehensive loss, net of tax, as presented in the Company’s consolidated financial statements. 2016 2015 Total Defined benefit pension plans Other post- employment benefit plans Total Defined benefit pension plans Other post- employment benefit plans Balance, beginning of period $ (38,442) $ (38,898) $ 456 $ (57,367) $ (57,654) $ 287 Amortization (56) 45 (101) 16,183 16,216 (33) Actuarial gains (losses) (810) (884) 74 2,742 2,540 202 Balance, end of period $ (39,308) $ (39,737) $ 429 $ (38,442) $ (38,898) $ 456 |
Earnings Per Share
Earnings Per Share | 12 Months Ended |
Dec. 31, 2016 | |
Earnings Per Share [Abstract] | |
Earnings Per Share | Note 9 : Earnings Per Share The table below sets forth the reconciliations for net income (loss) and weighted average shares used for calculating basic and diluted earnings per share (“EPS”). The Company’s Series A and Series B common stock equally share in the distributed and undistributed earnings. Years Ended December 31, 2016 2015 2014 Earnings (Numerator) Net income (loss) attributable to A. H. Belo Corporation $ (19,310) $ (17,842) $ 92,929 Less: Income (loss) from discontinued operations — (63) 6,770 Less: Dividends to participating securities 140 115 2,118 Net income (loss) available to common shareholders from continuing operations $ (19,450) $ (17,894) $ 84,041 Shares (Denominator) Weighted average common shares outstanding (basic) 21,620,539 21,408,940 21,899,602 Effect of dilutive securities — — 106,420 Adjusted weighted average shares outstanding (diluted) 21,620,539 21,408,940 22,006,022 Earnings Per Share from Continuing Operations Basic $ (0.90) $ (0.84) $ 3.84 Diluted $ (0.90) $ (0.84) $ 3.82 Holders of service-based RSUs participate in A. H. Belo dividends on a one- for -one share basis. Distributed and undistributed income associated with participating securities is included in the calculation of EPS under the two-class met hod as prescribed under ASC 260 – Earnings Per Share . The Company considers outstanding stock options and RSUs in the calculation of earnings per share. A total of 473,184 , 576 ,577 and 729,611 options and RSUs outstanding as of December 31, 2016 , 2015 and 2014 , respectively, were excluded from the calculation because the effect was anti-dilutive. |
Commitments and Contingencies
Commitments and Contingencies | 12 Months Ended |
Dec. 31, 2016 | |
Commitments and Contingencies [Abstract] | |
Commitments and Contingencies | Note 10 : Commitments and Contingencies As of December 31, 2016 , the Company had contractual obligations for leases and capital expenditures that primarily related to software upgrades. The table below sets forth the summarized commitments of the Company as of December 31, 2016 . Total 2017 2018 2019 2020 2021 Thereafter Operating lease commitments $ 36,795 $ 2,180 $ 2,586 $ 3,038 $ 2,403 $ 1,904 $ 24,684 Capital commitments 319 319 — — — — — Total commitments $ 37,114 $ 2,499 $ 2,586 $ 3,038 $ 2,403 $ 1,904 $ 24,684 On December 30, 2016, the Dallas Morning News, Inc., a wholly-owned subsidiary of the Company, entered into a lease for office space for the Company’s new corporate headquarters. The 16 -year lease agreement is subject to the landlord’s completion of its construction obligations. The new office space will be occupied by the Company after construction and tenant improvements are complete around mid-year 2017, and the Company will recognize rent expense on a straight-line basis. Per the lease agreement, rent payments will begin in June 2018. Total lease expense for property and equipment was $1,988 , $1,856 and $1,724 in 2016 , 2015 and 2014 , respectively. The Company funds the A. H. Belo Pension Plans to meet or exceed statutory requirements and currently expects to make no required contributions to these plans in 2017. See Note 7 - Pension and Other Retirement Plans for discussion of pension funding relief. From time to time, the Company is involved in a variety of claims, lawsuits and other disputes arising in the ordinary course of business. Management routinely assesses the likelihood of adverse judgments or outcomes in th ese matters, as well as the ranges of probable losses to the extent losses are reasonably estimable. Accruals for contingencies are recorded when, in the judgment of management, adverse judgments or outcome s are probable and the financial impact, should an adverse outcome occur, is reasonably estimable. The determinations of likely outcomes of litigation matters relates to factors that include, but are not limited to, past experience and other evidence, interpretation of relevant laws or regulations and the specifics and status of each matter. Predicting the outcome of claims and litigation and estimating related costs and financial exposure involves substantial uncertainties that could cause actual results to vary materially from estimates and accruals. The Company is currently involved in a dispute with a customer regarding performance and pricing terms with respect to a change order to its printing services contract with the Company. Although the Company believes its position related to the contract can be sustained on its legal merits, it is reasonably possible that losses from zero up to the total amount of disputed invoices, totaling approximately $1,500 , could be incurred in connection with the dispute. In the opinion of management, liabilities, if any, arising from other currently existing claims against the Company would not have a material adverse effect on A. H. Belo’s results of operations, liquidity or financial condition. Pro-rata distributions. In connection with the acquisition of DMV Holdings, the shareholder agreement provides for a pro-rata distribution of 100 percent and 50 percent of DMV Holdings’ free cash flow for fiscal years 2015 and 2016, respectively. Free cash flow is defined as earnings before interest, taxes, depreciation and amortization less capital expenditures, debt amortization and interest expense, as applicable. In 2016 , the Company made pro-rata distributions to noncontrolling interests of $264 in connection with this agreement based on 2015 free cash flow as defined. |
Redeemable Noncontrolling Inter
Redeemable Noncontrolling Interest | 12 Months Ended |
Dec. 31, 2016 | |
Redeemable Noncontrolling Interest [Abstract] | |
Redeemable Noncontrolling Interest | Note 11: Redeemable Noncontrolling Interest In connection with the acquisition of DMV Holdings, the Company entered into a shareholder agreement which provides for a put option to a noncontrolling shareholder. The put option provides the shareholder with the right to require the Company to purchase up to 25 percent of the noncontrolling ownership interest in DMV Holdings between the second and third anniversaries of the agreement and up to 50 percent of the noncontrolling ownership interest in DMV Holdings between the fourth and fifth anniversaries of the agreement. The exercisability of the noncontrolling interest put option is outside the control of the Company. As such, the redeemable noncontrolling interest of $ 2,670 and $1,421 is reported in the mezzanine equity section of the Consolidated Balance Sheets as of December 31, 2016 and 2015 , respectively. In the event that the put option expires unexercised, the related portion of noncontrolling interest would be classified as a component of equity in the Consolidated Balance Sheets. Redeemable noncontrolling interest is recorded at fair value on the acquisition date and the carrying value is adjusted each period for its share of the earnings related to DMV Holdings. After the carrying value is adjusted for its share of the earnings related to DMV Holdings, the carrying value is adjusted for the change in fair value, which is the greater of the estimated redemption value or the value that would otherwise be assigned if the interest was not redeemable. Adjustments are recorded to retained earnings or additional paid in capital, as applicable, and have no effect to earnings of the Company. In 2016 , redeemable noncontrolling interest was increased by $53 for its share of the DMV Holdings’ earnings and decreased by $99 for distributions related to 2015 free cash flow as required under the shareholder agreement. The carrying value adjustment for the 2016 change in fair value was an increase of $1,295 . |
Supplemental Cash Flow Data
Supplemental Cash Flow Data | 12 Months Ended |
Dec. 31, 2016 | |
Supplemental Cash Flow Data [Abstract] | |
Supplemental Cash Flow Data | Note 12: Supplemental Cash Flow Data The table below sets forth supplemental disclosures related to the Company’s Consolidated Statements of Cash Flows. Years Ended December 31, 2016 2015 2014 Income tax paid, net of refunds $ (906) $ 11,613 $ 8,759 Noncash investing and financing activities: Investments in property and equipment not paid 1,203 — — Receivable for asset sales proceeds 1,000 — — Dividends payable at year end 1,763 — 50,148 Receivable for investment sales proceeds — — 3,280 Impairment of equity method investment — — 1,871 Noncash contributions from noncontrolling interests — 1,210 183 |
Discontinued Operations and Sal
Discontinued Operations and Sales of Assets | 12 Months Ended |
Dec. 31, 2016 | |
Discontinued Operations and Sales of Assets [Abstract] | |
Discontinued Operations and Sales of Assets | Note 13: Discontinued Operations and Sales of Assets Discontinued Operations. In September 2014, The Providence Journal Company, a wholly-owned subsidiary of the Company, completed a transaction for the (i) sale of substantially all of the assets comprising the newspaper operations of The Providence Journal and related real property located in Providence, Rhode Island, and (ii) assumption of certain liabilities by LMG Rhode Island Holdings, Inc. (“LMG”), a subsidiary of New Media Investment Group Inc. The purchase price consisted of $46,000 plus a working capital adjustment of $2,654 . Closing costs of $110 and estimated selling and exit costs of $3,237 were recognized, and a pretax gain on the sale of $17,104 was recorded in 2014. Upon completion of th is divestiture, the Company no longer owns newspaper operations in Providence, Rhode Island and the activity and balances of The Providence Journal are presented as discontinued operations. The Company re tains the obligation for the A. H. Belo Pension Plan II, which provides benefits to employees of The Providence Journal Company. Other Dispositions. O n December 22, 2016, the Company completed the sale of land, in Providence, Rhode Island and received net cash proceeds of $921 and a $1,000 three -year note receivable upon closing of the transaction, generating a loss of $216 . On December 27 , 2016, the Company completed the sale of a parking lot located in downtown Dallas, Texas. The Company received net cash proceeds of $4,458 , generating a gain of $1,842 . In 2015, the Company completed the sale of land and a building which served as the headquarters of The Providence Journal . The Company received net proceeds of $6,119 upon closing of the transaction, generating a loss of $265 , which was offset by $328 of returned escrow received in 2016. The Company demolished existing structures on an additional property in Providence, Rhode Island, at a cost of $251 . In 2014, the Company sold the land and building formerly used as a commercial packaging operation in southern Dallas , generating sales proceeds of $6,677 and a gain of $1,827 . T he Company also received sales proceeds of $3,408 for the sale s of land and buildings in Riverside, California, and 97 acres in undeveloped land in southern Dallas, Texas, resulting in gains totaling $862 . |
Quarterly Results of Operations
Quarterly Results of Operations | 12 Months Ended |
Dec. 31, 2016 | |
Quarterly Results of Operations [Abstract] | |
Quarterly Results of Operations | Note 14 - Quarterly Results of Operations (Unaudited) The table below sets forth a summary of the unaudited consolidated quarterly results of operations for 2016 and 2015 . 1 st Quarter 2 nd Quarter 3 rd Quarter 4 th Quarter 2016 2015 2016 2015 2016 2015 2016 2015 Net operating revenue $ 62,483 $ 65,436 $ 66,626 $ 66,676 $ 64,780 $ 66,908 $ 66,095 $ 73,088 Operating income (loss) (1,781) (5,106) 2,659 (535) (489) (3,102) (24,135) (9,552) Income (loss) from continuing operations (593) 319 674 (694) (452) (3,967) (18,809) (13,852) Income (loss) from discontinued operations — (12) — 2 — (52) — (1) Net income (loss) (593) 307 674 (692) (452) (4,019) (18,809) (13,853) Net income (loss) attributable to A. H. Belo Corporation (632) 363 693 (592) (497) (3,956) (18,874) (13,657) Net income (loss) per share from continuing operations Basic $ (0.03) $ 0.02 $ 0.03 $ (0.03) $ (0.02) $ (0.18) $ (0.87) $ (0.64) Diluted (0.03) 0.02 0.03 (0.03) (0.02) (0.18) (0.87) (0.64) Fourth quarter 2016 includes a goodwill impairment charge of $22,682 related to the Company’s P ublishing reporting unit and fourth quarter 2015 includes a pension settlement charge of $14,964 . Per share amounts are computed independently for each of the quarters presented. The sum of the quarters may not equal the total year amount due to the impact of changes in average quarterly shares outstanding. |
Significant Accounting Polici22
Significant Accounting Policies and Recently Issued Accounting Standards (Policies) | 12 Months Ended |
Dec. 31, 2016 | |
Significant Accounting Policies and Recently Issued Accounting Standards [Abstract] | |
Basis of Presentation, Policy | Basis of Presentation. The consolidated financial statements included herein include adjustments of a normal recurring nature which, in the Company’s opinion, are necessary to present fairly the consolidated financial information as of and for the periods indicated. All significant intercompany balances and transactions have been eliminated in consolidation. A. H. Belo consolidates the financial results of the entities in which it has controlling financial interests, including DMV Holdings and Speakeasy , in which the Company holds ownership percentages of 80 percent and 70 percent, respectively. As a consequence, the assets and liabilities of such entities are presented on a consolidated basis in A. H. Belo’s financial statements. All dollar amounts presented herein, except share and per share amounts, are in thousands, unless the context indicates otherwise. The preparation of financial statements in conformity with accounting principles generally accepted in the United States of America (“GAAP”) requires management to make estimates and assumptions that affect (i) the reported amounts of assets and liabilities, (ii) the disclosure of contingent assets and liabilities known to exist as of the date the financial statements are published, and (iii) the reported amount of net operating revenues and expenses recognized during the periods presented. Adjustments made with respect to the use of estimates often relate to improved information not previously available. Uncertainties with respect to such estimates and assumptions are inherent in the preparation of financial statements; accordingly, actual results could differ from these estimates. |
Cash and Cash Equivalents, Policy | Cash and Cash Equivalents. The Company considers all highly liquid instruments purchased with original maturities of three months or less to be cash equivalents. |
Accounts Receivable, Policy | Accounts Receivable. Accounts receivable are reported net of a valuation reserve that represents an estimate of amounts considered uncollectible. The Company estimates the allowance for doubtful accounts based on historical write-off experience and t he Company’s knowledge of the customers’ ability to pay amounts due. Accounts are written-off after all collection efforts fail; generally, after one year has expired. Expense for such uncollectible amounts is included in other production, distribution and operating costs. Bad debt expense for 2016 and 2015 was $ 1,712 and $ 2,168 , respectively. Write-offs, net of recoveries and other adjustments for 2016 and 2015 were $2,039 and $1,989, respectively. |
Risk Concentration, Policy | Risk Concentration. A significant portion of the Company’s customer base is concentrated within the North Texas geographical area. The Company generally extends credit to customers, and the ultimate collection of accounts receivable could be affected by the national and local economy. Management continually performs credit evaluations of its customers and may require cash in advance or other special arrangements from certain customers. The Company maintains an allowance for losses based upon the collectability of accounts receivable. Management does not believe significant credit risk exists that could have a material adverse effect on the Company’s consolidated financial condition, liquidity or results of operations. |
Inventories, Policy | Inventories. Inventories, consisting primarily of newsprint, ink and other supplies used in printing newspapers, are recorded at the lower of cost or market value. Cost is determined by the weighted average purchase p rice of the inventory acquired. |
Property, Plant and Equipment, Policy | Property, Plant and Equipment. The Company records property, plant and equipment at cost or its fair value if acquired through a business acquisition or non-monetary exchange. Depreciation is recorded on a straight-line basis over the estimated useful lives of the assets and depreciable assets are reviewed to ensure the remaining useful life of the assets continues to be appropriate. An adjustment resulting from a change in the estimated useful life of an asset is recorded to depreciation expense on a prospective basis. The table below sets forth property, plant and equipment by type. December 31, Estimated 2016 2015 Useful Lives Land $ 11,384 $ 16,066 Buildings and improvements 133,441 133,355 5 - 30 years Publishing equipment 217,221 214,608 3 - 20 years Other 81,724 82,530 3 - 10 years Construction in process 2,104 1,664 Total 445,874 448,223 Less accumulated depreciation (402,115) (396,865) Property, plant and equipment, net $ 43,759 $ 51,358 |
Goodwill, Policy | Goodwill. Goodwill is recorded at the reporting unit level based on the excess fair value of prior business acquisitions over the fair value of the assets and liabilities acquired. Reporting units of the Company are based on its internal reporting structure and represent a reporting level below an operating segment. Unless qualitative factors allow the Company to conclude it is more - likely - than - not that the fair value of the reporting unit exceeds its carrying value, goodwill is tested for impairment by estimating the fair value of the reporting unit. If the fair value of the reporting unit is less than its carrying value, the fair value for the reporting unit ’ s underlying assets and liabilities is determined and goodwill is adjusted accordingly. In determining the fair value for a reporting unit , the Company considers recent stock and sales transaction prices of peer group companies as well as the present value of expected future cash flows of the reporting unit. Significant assumptions include sales and expense growth rates, discount rates, capital expenditures and the impact of current market conditions. These estimates could be materially impacted by changes in market conditions. The Company performs the goodwill impairment test as of December 31 each fiscal year or when changes in circumstances indicate an impairment event may have occurred. Impairment charges represent noncash charges and do not affect the Company’s liquidity, cash flows from operating activities or have any effect on future operations. The Company conducted the annual goodwill impairment test as of December 31, 2016, for all reporting units. This test, which was based on the Company’s most recent cash flow forecast, indicated that the P ublishing reporting unit ’s carrying value exceeded its estimated fair value. Accordingly, the Company recorded a non cash goodwill impairment charge of $22,682 in the fourth quarter of 2016, fully impairing the Publishing reporting unit ’s goodwill. |
Long-Lived Assets, Policy | Long-Lived Assets. The Company evaluates its ability to recover the carrying value of property, plant and equipment and finite-lived intangible assets, using the lowest level of cash flows associated with the assets, which are grouped based on the Company’s intended use of these assets. This evaluation is performed whenever a change in circumstances indicates that the carrying value of an asset group may not be recoverable . If the analysis of undiscounted future cash flows indicates the carrying value of the long-lived assets cannot be recovered, the assets are adjusted to the lower of its carrying value or fair value. |
Investments, Policy | Investments. The Company owns certain equity securities in companies in which it does not exercise control. These investments are recorded under the cost method and the Company recognizes income or loss upon the receipt of dividends or distributions, or upon liquidation of the investment. The Company evaluates its ability to recover the carrying value of cost method investments based upon the financial strength of the investee. If the Company determines the carrying value is not recoverable, an impairment charge is recorded for the difference between the fair value of the investment and the carrying value. For those investments where the Company is able to exercise significant influence over the investee as defined under ASC 323 – Equity Method and Joint Ventures , the Company accounts for the investment under the equity method of accounting, recognizing its share of the investee’s income or loss as a component of earnings. As of December 31, 2016, the Company did not have any equity method investments. In the fourth quarter of 2015, the Company’s ownership interest in Wanderful Media, LLC (“Wanderful”) decreased to less than 20 percent of the outstanding membership interests of Wanderful and the Company no longer exerted significant influence over Wanderful . Accordingly, the Company discontinued the use of the equity method of accounting for the investment in Wanderful, and began accounting for the investment under the cost method. In the fourth quarter of 2016, the Company abandoned its remaining ownership interest in Wanderful. |
Pension, Policy | Pension. The Company follows accounting guidance for single - employer defined benefit plans. Plan assets and the projected benefits obligation are measured each December 31, and the Company records as an asset or liability the net funded position of the plans. Certain changes in actuarial valuations related to returns on plan assets and projected benefit obligations are recorded to accumulated other comprehensive income (loss) and are amortized to net periodic pension expense over the weighted average remaining life of plan participants, to the extent the cumulative balance in accumulated other comprehensive income (loss) exceeds 10 percent of the greater of the respective plan’s (a) projected benefit obligation or (b) the market-related value of the plan’s assets. Net periodic pension expense is recognized each period by accruing interest expense on the projected benefit obligation and accruing a return on assets associated with the plan assets. Participation in and accrual of new benefits to participants has been frozen since 2007 and, accordingly, on-going service costs are not a component of net periodic pension expense. From time to time, the Company-sponsored plans may settle pension obligations with certain plan participants through the plans’ master trust as part of its de-risking strategies. The gains or losses associated with settlements of plan obligations to participants are recognized to earnings if such settlements exceed the interest component of net periodic pension cost for the year. Otherwise, such amounts are included in actuarial gains (losses) in accumulated other comprehensive income (loss). R e-measurement of plan assets and liabilities upon a significant settlement or curtailment event is performed based on the values of the month-end closest to the event. |
Long-Term Incentive Plan, Policy | Long-Term Incentive Plan. The Company sponsors a long-term incentive plan (the “Plan”) under which it issues restricted stock units (“RSUs”) and cash awards to directors and certain employees of the Company. The fair value of awards issued under the Plan is recognized to expense over the requisite service period. The fair value of RSUs is established at the closing price of the Company’s common stock on the date of grant. Vested RSUs are redeemed 60 percent in A. H. Belo Series A common stock and 40 percent in cash over a period of up to three years. The Company records a liability for the portion of the outstanding RSUs to be redeemed in cash, which is adjusted to its fair value each period, based on the closing price of the Company’s common stock. Under the long-term incentive plan, options can be issued to directors and employees of the Company. All outstanding options issued against the Company’s stock were fully vested and recognized to earnings a s of December 31, 2016. |
Shareholders' Equity, Policy | Shareholders’ Equity. The Company authorized the issuance of shares of Series A and Series B common stock. Series A common stock has one vote per share and Series B common stock has 10 votes per share. Shares of Series B common stock are convertible at any time on a share-for-share basis into shares of Series A common stock, but not vice versa. The Company is authorized to grant stock option and RSU awards to employees and directors of the Company. Upon vesting of RSUs, shares of Series A common stock are issued. Upon the exercise of stock options, Series A common stock is issued if the holder of the stock options executes a simultaneous exercise and sale. If the holder of the stock option chooses not to sell the shares, Series B common stock is issued. In 2012, the Company’s board of directors authorized the purchase of the A. H. Belo Series A or Series B common stock, for use other than retirement, through open market purchases, privately negotiated transactions or otherwise. The Company’s agreement to repurchase its shares was terminated in December 2015. Treasury stock acquired under the repurchase program is recorded at cost, reducing shareholders’ equity. The acquired shares are available for sale on the open market or for settlement of obligations related to its share-based awards. Accumulated other comprehensive loss consists of actuarial gains and losses associated with the A. H. Belo Pension Plans (“Pension Plans”) and other post-employment benefit (“OPEB”) plans. The cumulative balances are amortized to earnings over the weighted average remaining life expectancy of the participants to the extent such balances exceed 10 percent of the greater of the respective plan’s (a) projected benefit obligation or (b) the market-related value of the plan’s assets. The Company discloses amounts reclassified from accumulated other comprehensive loss to net income in Note 8 - Shareholders' Equity . |
Revenue Recognition, Policy | Revenue Recognition. The Company’s principal sources of revenue are the advertising space in published issues of its newspapers and on the Company’s and third-party websites, the sale of newspapers to distributors and individual subscribers, as well as amounts charged to customers for commercial printing, distribution and direct mail. Advertising revenue is recorded net of agency commission at the time the advertisements are published in the newspaper and ratably over the period of time the advertisement is placed on the websites. Marketing services revenue is recognized at the time the services are rendered. Proceeds from subscriptions are deferred and included in revenue ratably over the term of the subscriptions. Subscription revenue under buy-sell arrangements with distributors is recorded based on the net amount received from the distributor, whereas subscription revenue under fee-based delivery arrangements with distributors is recorded based on the amount received from the subscriber. Commercial printing and direct mail revenue is recorded when the product is distributed or shipped. |
Income Taxes, Policy | Income Taxes. The Company uses the asset and liability method of accounting for income taxes and recognizes deferred tax assets and liabilities based on the difference between the financial statement and tax basis of assets and liabilities using enacted tax rates. The Company establishes a valuation allowance if it is more - likely - than - not that the deferred tax assets will not be realized. The factors used to assess the likelihood of realization of the deferred tax asset s include reversal of future deferred tax liabilities, available tax planning strategies , future taxable income and taxable income in prior carryback years. In 2015, the FASB issued ASU 2015-17 allowing companies to present deferred tax assets and liabilities as noncurrent in a classified balance sheet. The Company elected to early-adopt this presentation in its Consolidated Balance Sheet as of December 31, 2015. The Company evaluates any uncertain tax positions each reporting period by tax jurisdiction to determine if it is more - likely - than - not that the tax position will not be sustained on examination by the taxing authorities, based on the technical merits of the position. The tax benefits recognized in the financial statements for such positions are measured based on the largest benefit that has a greater than 50 percent likelihood of being realized upon ultimate settlement. If a net operating loss or other tax credit carry forward exists, the Company records the unrecognized tax benefits for such tax positions as a reduction to a deferred tax asset. Otherwise, the unrecognized tax benefits are recorded as a liability. The Company records a liability for uncertain tax positions taken or expected to be taken in a tax return. Any change in judgment related to the expected ultimate resolution of uncertain tax positions is recognized in earnings in the period in which such change occurs. Interest and penalties, if any, related to unrecognized tax benefits are recorded in interest expense. |
Use of Estimates, Policy | Use of Estimates. Company management makes estimates and assumptions that affect the amounts and disclosures reported in its financial statements and include valuation allowances for doubtful accounts, uncertain tax positions and deferred tax assets, fair value measurements related to assets held for sale, pension plan assets and equity based compensation, actuarial liabilities related to self-insured risks, pension plan obligations and assumptions related to impairment and recovery of goodwill and long - lived assets. Estimates are based on past experience and other considerations reasonable under the circumstances. Actual results may differ from these estimates. |
Segments, Policy | Segments. The Company operates under two reportable segments. The Publishing (“Publishing”) segment includes the operating activities associated with the Company’s print operations and its related websites. All other activities are included in the marketing, event marketing and other services segment (“MEMO”). This segment primarily includes sales of advertising delivered outside the Company’s news platforms, social media management services, and other marketing services designed to provide integrated solutions for optimizing businesses marketing challenges and opportunities. |
Fair Value Measurements, Policy | Fair Value Measurements. The Company’s financial instruments, including cash, cash equivalents, accounts receivable, interest receivable, accounts payable and amounts due to customers are carried at cost, which approximates its fair value because of the short-term nature of these instruments. |
Recently Adopted Accounting Pronouncements | Recently Adopted Accounting Pronouncements. In April 2015, the Financial Accounting Standards Board (“FASB”) issued Accounting Standards Update (“ASU”) 2015-05 – Intangibles – Goodwill and Other – Internal-Use Software (Subtopic 350-40): Customer’s Accounting for Fees Paid in a Cloud Computing Arrangement. This update provides guidance to customers about whether a cloud computing arrangement includes a software license. If a cloud computing arrangement includes a software license, then the customer should account for the software license element of the arrangement consistent with the acquisition of other software licenses. If a cloud computing arrangement does not include a software license, the customer should account for the arrangement as a service contract. The standard became effective for annual and interim reporting periods beginning after December 15, 2015. The adoption of this standard did not have a material impact on the Company’s consolidated financial statements. In September 2015, the FASB issued ASU 2015-16 – Business Combinations (Topic 805): Simplifying the Accounting for Measurement-Period Adjustments. This update requires that an acquirer in a business combination recognize adjustments to provisional amounts that are identified during the measurement period in the reporting period in which the adjustment amounts are determined. The acquirer is required to record, in the same period’s financial statements, the effect on earnings, if any, as a result of the change to the provisional amounts, calculated as if the accounting had been completed at the acquisition date. The amendments in this update are effective for fiscal years beginning after December 15, 2015, including interim periods within those fiscal years. The amendments in this update should be applied prospectively to adjustments to provisional amounts that occur after the effective date of this update with earlier application permitted for financial statements that have not been issued. The Company adopted this standard in the fourth quarter of 2015. Accordingly, the Company has not retroactively accounted for the changes in the purchase price allocation for DMV Holdings, which was finalized in the fourth quarter of 2015. In March 2016, the FASB issued ASU 2016-09 – Compensation – Stock Compensation (Topic 718): Improvements to Employee Share-Based Payment Accounting. The amendments in this update affect all entities that issue share-based payment awards to their employees. The areas for simplification in this update involve several aspects of the accounting for share-based payment transactions, including the income tax consequences, classification of awards as either equity or liabilities, and classification on the statement of cash flows. The guidance will be effective for fiscal years beginning after December 15, 2016, including interim periods within those fiscal years. Early adoption is permitted in any interim or annual period. T he Company early adopted this standard prospectively in the first quarter of 2016. Adoption of this standard did not materially impact the Company's consolidated financial statements. |
New Accounting Pronouncements | New Accounting Pronouncements. The FASB has issued the following accounting pronouncements and guidance which may be applicable to the Company but have not yet become effective. In May 2014, the FASB issued ASU 2014-09 – Revenue from Contracts with Customers (Topic 606). This guidance prescribes a single comprehensive model for entities to use in the accounting of revenue arising from contracts with customers . The core principle contemplated by this new guidance is that an entity should recognize revenue to depict the transfer of promised goods or services to customers in an amount reflecting the consideration the entity expects to be entitled in exchange for those goods or services. New disclosures about the nature, amount, timing and uncertainty of revenue and cash flows arising from contracts with customers are also required . Since May 2014 , the FASB issued clarifying updates to the new standard specifically to address certain core principles including the identification of performance obligations, licensing guidance, the assessment of the collectability criterion, the presentation of taxes collected from customers, noncash considerations, contract modifications, and completed contracts at transition. The new guidance will supersede virtually all existing revenue guidance under GAAP and is effective for fiscal years beginning after December 31, 2017. The Company currently anticipates adopting ASU 2 014-09 using the modified retrospective approach as of January 1, 2018. This approach consists of recognizing the cumulative effect of initially applying the standard as an adjustment to opening retained earnings. The Company is currently evaluating the impact that the updated guidance will have on the Company’s financial statements and related disclosures. The Company will utilize a bottoms-up approach to analyze the impact of the standard on the Company’s portfolio of contracts by reviewing its current accounting policies and practices to identify potential differences that would result from applying the requirements of the new standard to the Company’s existing revenue contracts. The Company expects to complete this evaluation prior to the fourth quarter of 2017. In February 2016, the FASB issued ASU 2016-02 – Leases (Topic 842). This update requires an entity to recognize a right-of-use asset and a lease liability for virtually all of its leases. The liability will be equal to the present value of lease payments. The asset will generally be based on the liability. For income statement purposes operating leases will result in straight-line expense and finance leases will result in expenses similar to current capital leases. The guidance also requires additional disclosures to enable users of financial statements to understand the amount, timing and uncertainty of cash flows arising from leases. The guidance will be effective for fiscal years beginning after December 15, 2018, including interim periods within those fiscal years and will be applied retrospectively . Early adoption is permitted. The Company is currently evaluating the requirements of this update and has not yet determined its impact on the Company’s consolidated financial statement s. |
Significant Accounting Polici23
Significant Accounting Policies and Recently Issued Accounting Standards (Tables) | 12 Months Ended |
Dec. 31, 2016 | |
Significant Accounting Policies and Recently Issued Accounting Standards [Abstract] | |
Property, Plant and Equipment by Type | December 31, Estimated 2016 2015 Useful Lives Land $ 11,384 $ 16,066 Buildings and improvements 133,441 133,355 5 - 30 years Publishing equipment 217,221 214,608 3 - 20 years Other 81,724 82,530 3 - 10 years Construction in process 2,104 1,664 Total 445,874 448,223 Less accumulated depreciation (402,115) (396,865) Property, plant and equipment, net $ 43,759 $ 51,358 |
Acquisitions (Tables)
Acquisitions (Tables) | 12 Months Ended |
Dec. 31, 2016 | |
Acquisitions [Abstract] | |
Purchase price allocation, preliminary | Estimated Fair Value Working capital, net of acquired cash $ (80) Property, plant and equipment 57 Other intangible assets 6,470 Goodwill 12,301 Deferred tax liability (2,090) $ 16,658 |
Segment Reporting (Tables)
Segment Reporting (Tables) | 12 Months Ended |
Dec. 31, 2016 | |
Segment Reporting [Abstract] | |
Reportable Segment Information | Years Ended December 31, 2016 2015 2014 Revenue Publishing $ 215,559 $ 236,166 $ 250,112 MEMO 44,425 35,942 22,676 Total $ 259,984 $ 272,108 $ 272,788 Operating Income (Loss) Publishing $ (26,925) $ (18,350) $ (9,881) MEMO 3,179 55 2,195 Total $ (23,746) $ (18,295) $ (7,686) Noncash Expenses Publishing Depreciation $ 10,633 $ 11,401 $ 13,672 Amortization — 120 121 Goodwill impairment 22,682 — — Pension settlement — 14,964 7,648 Total $ 33,315 $ 26,485 $ 21,441 MEMO Depreciation $ 80 $ 114 $ 148 Amortization 906 1,229 77 Total $ 986 $ 1,343 $ 225 December 31, 2016 2015 Total Assets Publishing $ 168,641 $ 196,912 MEMO 24,090 24,589 Total $ 192,731 $ 221,501 |
Goodwill and Intangible Assets
Goodwill and Intangible Assets (Tables) | 12 Months Ended |
Dec. 31, 2016 | |
Goodwill and Intangible Assets [Abstract] | |
Schedule of identifiable intangible assets | December 31, 2016 2015 Goodwill Publishing $ — $ 22,682 MEMO 14,201 14,201 Total $ 14,201 $ 36,883 Intangible Assets MEMO Cost $ 6,710 $ 6,710 Accumulated Amortization (1,838) (932) Net Carrying Value $ 4,872 $ 5,778 |
Long-term Incentive Plan (Table
Long-term Incentive Plan (Tables) | 12 Months Ended |
Dec. 31, 2016 | |
Long-term Incentive Plan [Abstract] | |
Schedule of stock options outstanding activity | Number of Options WeightedAverage Exercise Price Outstanding at December 31, 2015 259,311 $ 8.37 Exercised (85,926) 1.81 Canceled (58,406) 18.33 Outstanding at December 31, 2016 114,979 8.21 |
Schedule of RSU activity | Total RSUs Issuance of Common Stock RSUs Redeemed in Cash Cash Payments at Closing Price of Stock Weighted- Average Price on Date of Grant Non-vested at December 31, 2015 92,355 $ 7.13 Granted 202,955 5.47 Vested and outstanding (155,511) 6.00 Vested and issued (18,668) 11,196 7,472 $ 44 8.10 Non-vested at December 31, 2016 121,131 5.65 |
Schedule of compensation expense related to stock awards | Years Ended December 31, RSUs Redeemable in Stock RSUs Redeemable in Cash Total RSU Awards Expense 2016 $ 640 $ 580 $ 1,220 2015 605 (349) 256 2014 702 1,117 1,819 |
Income Taxes (Tables)
Income Taxes (Tables) | 12 Months Ended |
Dec. 31, 2016 | |
Income Taxes [Abstract] | |
Schedule of Components of Income Tax Expense (Benefit) | Years Ended December 31, 2016 2015 2014 Current Federal $ (2,431) $ (1,726) $ 3,865 State 1,205 1,729 1,333 Total current (1,226) 3 5,198 Deferred Federal 1,514 (3,988) 28,577 State (26) (389) 646 Total deferred 1,488 (4,377) 29,223 Valuation Allowance (2,534) 2,804 (28,443) Income Tax Provision (Benefit) $ (2,272) $ (1,570) $ 5,978 |
Schedule of Effective Income Tax Rate Reconciliation | Years Ended December 31, 2016 2015 2014 Computed expected income tax provision (benefit) $ (7,312) $ (6,917) $ 32,195 State income tax (net of federal benefit) 757 780 1,314 Valuation allowance (2,534) 2,804 (28,443) Goodwill impairment 6,266 — — Nondeductible expenses 249 493 81 Uncertain tax position reserve (7) 244 — Noncontrolling interests (40) 133 53 Other 349 893 778 Income tax provision (benefit) $ (2,272) $ (1,570) $ 5,978 Effective income tax rate 10.6% 7.9% 6.5% |
Schedule of Deferred Tax Assets and Liabilities | December 31, 2016 2015 Deferred Tax Assets (Liabilities) Defined benefit plans $ 19,195 $ 20,106 Investments 659 4,270 Tax depreciation less than book depreciation 4,171 2,284 Expenses deductible for tax purposes in a year different from the year accrued 805 1,366 Deferred compensation and benefits 756 951 Tax amortization in excess of book amortization (848) (2,814) State taxes 106 80 Other 739 502 Total 25,583 26,745 Valuation allowance for deferred tax assets (25,583) (27,791) Net Deferred Tax Liabilities $ — $ (1,046) |
Schedule of Unrecognized Tax Positions | 2016 Balance at January 1 $ 244 Reductions for tax positions of prior years (7) Balance at December 31 $ 237 |
Pension and Other Retirement 29
Pension and Other Retirement Plans (Tables) | 12 Months Ended |
Dec. 31, 2016 | |
Pension and Other Retirement Plans [Abstract] | |
Schedule of Defined Benefit Plans Disclosures | 2016 2015 Change in Projected Benefit Obligation Projected benefit obligation at beginning of year $ 262,027 $ 396,656 Interest cost 10,098 14,161 Actuarial (gain) loss 1,368 (27,307) Benefit payments (14,468) (121,483) Projected benefit obligation at end of year 259,025 262,027 Change in Plan Assets Fair value of plan assets at beginning of year 204,581 330,797 Return on plan assets 14,069 (4,733) Benefit payments (14,468) (121,483) Fair value of plan assets at end of year 204,182 204,581 Funded Status $ (54,843) $ (57,446) Amounts Recorded on the Balance Sheet Noncurrent liability - accrued benefit cost $ 54,843 $ 57,446 Accumulated Benefit Obligation $ 259,025 $ 262,027 |
Schedule of Net Periodic Pension Expense | Years Ended December 31, 2016 2015 2014 Interest cost $ 10,098 $ 14,161 $ 17,320 Expected return on plans' assets (13,585) (20,033) (20,859) Amortization of actuarial loss 45 1,252 — Recognized settlement loss — 14,964 7,648 Net periodic pension expense (benefit) $ (3,442) $ 10,344 $ 4,109 |
Schedule of Fair Value and Allocation of Plan Assets | Fair Value Measurements Using Total Quoted Price in Active Markets for Identical Assets (Level I) Significant Other Observable Inputs (Level II) Significant Unobservable Inputs (Level III) Description 2016 2015 2016 2015 2016 2015 2016 2015 Cash and Money Market Funds $ 1,865 $ 4,178 $ 1,865 $ 4,178 $ — $ — $ — $ — Equity Funds U.S. equity securities 58,645 62,314 — — 58,645 62,314 — — International equity securities 32,079 28,669 10,824 4,334 21,255 24,335 — — Fixed Income Funds Domestic corporate and government debt securities 52,136 54,427 — — 52,136 54,427 — — Domestic corporate debt securities 51,768 49,074 — — 51,768 49,074 — — International corporate and government debt securities 7,689 5,919 — — 7,689 5,919 — — Total $ 204,182 $ 204,581 $ 12,689 $ 8,512 $ 191,493 $ 196,069 $ — $ — |
Schedule of Expected Benefit Payments | Payment year Expected Benefit Payments 2017 $ 15,859 2018 16,030 2019 16,100 2020 16,043 2021 16,039 2022 - 2026 79,266 |
Shareholders' Equity (Tables)
Shareholders' Equity (Tables) | 12 Months Ended |
Dec. 31, 2016 | |
Shareholders' Equity [Abstract] | |
Changes in accumulated other comprehensive loss | 2016 2015 Total Defined benefit pension plans Other post- employment benefit plans Total Defined benefit pension plans Other post- employment benefit plans Balance, beginning of period $ (38,442) $ (38,898) $ 456 $ (57,367) $ (57,654) $ 287 Amortization (56) 45 (101) 16,183 16,216 (33) Actuarial gains (losses) (810) (884) 74 2,742 2,540 202 Balance, end of period $ (39,308) $ (39,737) $ 429 $ (38,442) $ (38,898) $ 456 |
Earnings Per Share (Tables)
Earnings Per Share (Tables) | 12 Months Ended |
Dec. 31, 2016 | |
Earnings Per Share [Abstract] | |
Schedule of earnings per share reconciliation | Years Ended December 31, 2016 2015 2014 Earnings (Numerator) Net income (loss) attributable to A. H. Belo Corporation $ (19,310) $ (17,842) $ 92,929 Less: Income (loss) from discontinued operations — (63) 6,770 Less: Dividends to participating securities 140 115 2,118 Net income (loss) available to common shareholders from continuing operations $ (19,450) $ (17,894) $ 84,041 Shares (Denominator) Weighted average common shares outstanding (basic) 21,620,539 21,408,940 21,899,602 Effect of dilutive securities — — 106,420 Adjusted weighted average shares outstanding (diluted) 21,620,539 21,408,940 22,006,022 Earnings Per Share from Continuing Operations Basic $ (0.90) $ (0.84) $ 3.84 Diluted $ (0.90) $ (0.84) $ 3.82 |
Commitments and Contingencies (
Commitments and Contingencies (Tables) | 12 Months Ended |
Dec. 31, 2016 | |
Commitments and Contingencies [Abstract] | |
Operating lease and capital commitment obligations | Total 2017 2018 2019 2020 2021 Thereafter Operating lease commitments $ 36,795 $ 2,180 $ 2,586 $ 3,038 $ 2,403 $ 1,904 $ 24,684 Capital commitments 319 319 — — — — — Total commitments $ 37,114 $ 2,499 $ 2,586 $ 3,038 $ 2,403 $ 1,904 $ 24,684 |
Supplemental Cash Flow Data (Ta
Supplemental Cash Flow Data (Tables) | 12 Months Ended |
Dec. 31, 2016 | |
Supplemental Cash Flow Data [Abstract] | |
Supplemental Disclosures of Cash Flows | Years Ended December 31, 2016 2015 2014 Income tax paid, net of refunds $ (906) $ 11,613 $ 8,759 Noncash investing and financing activities: Investments in property and equipment not paid 1,203 — — Receivable for asset sales proceeds 1,000 — — Dividends payable at year end 1,763 — 50,148 Receivable for investment sales proceeds — — 3,280 Impairment of equity method investment — — 1,871 Noncash contributions from noncontrolling interests — 1,210 183 |
Quarterly Results of Operatio34
Quarterly Results of Operations (Tables) | 12 Months Ended |
Dec. 31, 2016 | |
Quarterly Results of Operations [Abstract] | |
Schedule of Quarterly Financial Information | 1 st Quarter 2 nd Quarter 3 rd Quarter 4 th Quarter 2016 2015 2016 2015 2016 2015 2016 2015 Net operating revenue $ 62,483 $ 65,436 $ 66,626 $ 66,676 $ 64,780 $ 66,908 $ 66,095 $ 73,088 Operating income (loss) (1,781) (5,106) 2,659 (535) (489) (3,102) (24,135) (9,552) Income (loss) from continuing operations (593) 319 674 (694) (452) (3,967) (18,809) (13,852) Income (loss) from discontinued operations — (12) — 2 — (52) — (1) Net income (loss) (593) 307 674 (692) (452) (4,019) (18,809) (13,853) Net income (loss) attributable to A. H. Belo Corporation (632) 363 693 (592) (497) (3,956) (18,874) (13,657) Net income (loss) per share from continuing operations Basic $ (0.03) $ 0.02 $ 0.03 $ (0.03) $ (0.02) $ (0.18) $ (0.87) $ (0.64) Diluted (0.03) 0.02 0.03 (0.03) (0.02) (0.18) (0.87) (0.64) |
Significant Accounting Polici35
Significant Accounting Policies and Recently Issued Accounting Standards (Details) $ in Thousands | 3 Months Ended | 12 Months Ended | |
Dec. 31, 2016USD ($)item | Dec. 31, 2016USD ($)segmentitem | Dec. 31, 2015USD ($) | |
Basis of Presentation and Recently Issued Accounting Standards [Line Items] | |||
Bad debt expense | $ 1,712 | $ 2,168 | |
Write-offs, net of recoveries and other adjustments | 2,039 | $ 1,989 | |
Goodwill impairment | 22,682 | ||
Equity method investments | $ 0 | $ 0 | |
Amortization threshold percentage | 10.00% | ||
Number of operating segments | segment | 2 | ||
Publishing | |||
Basis of Presentation and Recently Issued Accounting Standards [Line Items] | |||
Goodwill impairment | $ 22,682 | ||
Series A | |||
Basis of Presentation and Recently Issued Accounting Standards [Line Items] | |||
Common stock, voting rights, number of votes | item | 1 | 1 | |
Series B | |||
Basis of Presentation and Recently Issued Accounting Standards [Line Items] | |||
Common stock, voting rights, number of votes | item | 10 | 10 | |
RSUs | |||
Basis of Presentation and Recently Issued Accounting Standards [Line Items] | |||
Vested RSUs are redemption percentage of common stock | 60.00% | ||
Vested RSUs are redemption percentage of cash | 40.00% | ||
Share-based Compensation Arrangement by Share-based Payment Award, Award Vesting Period | 3 years | ||
RSUs | Maximum | |||
Basis of Presentation and Recently Issued Accounting Standards [Line Items] | |||
Share-based Compensation Arrangement by Share-based Payment Award, Award Vesting Period | 3 years | ||
Speakeasy | |||
Basis of Presentation and Recently Issued Accounting Standards [Line Items] | |||
Consolidated method - A. H. Belo ownership | 70.00% | 70.00% | |
DMV | |||
Basis of Presentation and Recently Issued Accounting Standards [Line Items] | |||
Consolidated method - A. H. Belo ownership | 80.00% | 80.00% | |
Wanderful | Maximum | |||
Basis of Presentation and Recently Issued Accounting Standards [Line Items] | |||
Cost method A. H. Belo ownership | 20.00% |
Significant Accounting Polici36
Significant Accounting Policies and Recently Issued Accounting Standards (Property, Plant and Equipment by Type) (Details) - USD ($) $ in Thousands | 12 Months Ended | |
Dec. 31, 2016 | Dec. 31, 2015 | |
Property, Plant and Equipment | ||
Total | $ 445,874 | $ 448,223 |
Less accumulated depreciation | (402,115) | (396,865) |
Property, plant and equipment, net | 43,759 | 51,358 |
Land | ||
Property, Plant and Equipment | ||
Total | 11,384 | 16,066 |
Buildings and improvements | ||
Property, Plant and Equipment | ||
Total | $ 133,441 | 133,355 |
Buildings and improvements | Minimum | ||
Property, Plant and Equipment | ||
Estimated useful life | 5 years | |
Buildings and improvements | Maximum | ||
Property, Plant and Equipment | ||
Estimated useful life | 30 years | |
Publishing equipment | ||
Property, Plant and Equipment | ||
Total | $ 217,221 | 214,608 |
Publishing equipment | Minimum | ||
Property, Plant and Equipment | ||
Estimated useful life | 3 years | |
Publishing equipment | Maximum | ||
Property, Plant and Equipment | ||
Estimated useful life | 20 years | |
Other | ||
Property, Plant and Equipment | ||
Total | $ 81,724 | 82,530 |
Other | Minimum | ||
Property, Plant and Equipment | ||
Estimated useful life | 3 years | |
Other | Maximum | ||
Property, Plant and Equipment | ||
Estimated useful life | 10 years | |
Construction in progress | ||
Property, Plant and Equipment | ||
Total | $ 2,104 | $ 1,664 |
Acquisitions (Narrative) (Detai
Acquisitions (Narrative) (Details) - USD ($) $ in Thousands | Mar. 02, 2017 | Feb. 16, 2017 | Jan. 31, 2015 | Dec. 31, 2016 | Dec. 31, 2015 |
DMV | |||||
Business Acquisition [Line Items] | |||||
Business Acquisition, Effective Date of Acquisition | Jan. 1, 2015 | ||||
Business Acquisition, Percentage of Voting Interests Acquired | 80.00% | ||||
Business Acquisition, Consideration Transferred | $ 7,120 | $ 14,110 | |||
Business Acquisition, Cumulative Transaction Costs | 1,288 | ||||
Business Acquisition, Fair Value Of Business | 17,829 | ||||
Business Acquisition, Noncontrolling Interest, Fair Value | 2,548 | ||||
Business Acquisition, Goodwill, Expected Tax Deductible Amount | $ 807 | ||||
Business Acquisition, Current Revenues of Acquiree | $ 10,138 | ||||
Business Acquisition, Current Net Loss before Income Taxes | 95 | ||||
DMV | Subsequent Event [Member] | |||||
Business Acquisition [Line Items] | |||||
Business Acquisition, Percentage of Voting Interests Acquired | 20.00% | ||||
DMV | Intercompany [Member] | |||||
Business Acquisition [Line Items] | |||||
Business Acquisition, Current Revenues of Acquiree | $ 1,137 | ||||
Speakeasy | Subsequent Event [Member] | |||||
Business Acquisition [Line Items] | |||||
Business Acquisition, Percentage of Voting Interests Acquired | 30.00% | ||||
Business Acquisition, Consideration Transferred | $ 2,111 |
Acquisitions (Purchase price al
Acquisitions (Purchase price allocation, preliminary) (Details) - USD ($) $ in Thousands | Dec. 31, 2016 | Dec. 31, 2015 |
Business Acquisition [Line Items] | ||
Goodwill | $ 14,201 | $ 36,883 |
DMV | ||
Business Acquisition [Line Items] | ||
Working capital, net of acquired cash | (80) | |
Property, plant, and equipment | 57 | |
Other intangible assets | 6,470 | |
Goodwill | 12,301 | |
Deferred tax liability | (2,090) | |
Assets acquired and liabilities assumed, net | $ 16,658 |
Segment Reporting (Narrative) (
Segment Reporting (Narrative) (Details) $ in Thousands | 12 Months Ended | |
Dec. 31, 2016segment | Dec. 31, 2015USD ($)employee | |
Segment Reporting [Abstract] | ||
Number of reportable segments | segment | 2 | |
Number of positions eliminated | employee | 70 | |
Severance Costs | $ | $ 2,891 |
Segment Reporting (Reportable S
Segment Reporting (Reportable Segment Information) (Details) - USD ($) $ in Thousands | 3 Months Ended | 12 Months Ended | |||||||||
Dec. 31, 2016 | Sep. 30, 2016 | Jun. 30, 2016 | Mar. 31, 2016 | Dec. 31, 2015 | Sep. 30, 2015 | Jun. 30, 2015 | Mar. 31, 2015 | Dec. 31, 2016 | Dec. 31, 2015 | Dec. 31, 2014 | |
Segment Reporting Information [Line Items] | |||||||||||
Revenue | $ 66,095 | $ 64,780 | $ 66,626 | $ 62,483 | $ 73,088 | $ 66,908 | $ 66,676 | $ 65,436 | $ 259,984 | $ 272,108 | $ 272,788 |
Operating Income (Loss) | (24,135) | $ (489) | $ 2,659 | $ (1,781) | (9,552) | $ (3,102) | $ (535) | $ (5,106) | (23,746) | (18,295) | (7,686) |
Depreciation | 10,713 | 11,515 | 13,820 | ||||||||
Amortization | 906 | 1,349 | 198 | ||||||||
Goodwill impairment | 22,682 | ||||||||||
Pension settlement | 14,964 | 7,648 | |||||||||
Total Assets | 192,731 | 221,501 | 192,731 | 221,501 | |||||||
Publishing | |||||||||||
Segment Reporting Information [Line Items] | |||||||||||
Goodwill impairment | 22,682 | ||||||||||
Operating Segments | |||||||||||
Segment Reporting Information [Line Items] | |||||||||||
Total | 986 | 1,343 | 225 | ||||||||
Operating Segments | Publishing | |||||||||||
Segment Reporting Information [Line Items] | |||||||||||
Revenue | 215,559 | 236,166 | 250,112 | ||||||||
Operating Income (Loss) | (26,925) | (18,350) | (9,881) | ||||||||
Depreciation | 10,633 | 11,401 | 13,672 | ||||||||
Amortization | 120 | 121 | |||||||||
Goodwill impairment | 22,682 | 22,682 | |||||||||
Pension settlement | 14,964 | 14,964 | 7,648 | ||||||||
Total | 33,315 | 26,485 | 21,441 | ||||||||
Total Assets | 168,641 | 196,912 | 168,641 | 196,912 | |||||||
Operating Segments | Marketing, Event Marketing and Other Services | |||||||||||
Segment Reporting Information [Line Items] | |||||||||||
Revenue | 44,425 | 35,942 | 22,676 | ||||||||
Operating Income (Loss) | 3,179 | 55 | 2,195 | ||||||||
Depreciation | 80 | 114 | 148 | ||||||||
Amortization | 906 | 1,229 | $ 77 | ||||||||
Total Assets | $ 24,090 | $ 24,589 | $ 24,090 | $ 24,589 |
Goodwill and Intangible Asset41
Goodwill and Intangible Assets (Narrative) (Details) - USD ($) $ in Thousands | 3 Months Ended | 12 Months Ended | ||
Dec. 31, 2016 | Dec. 31, 2016 | Dec. 31, 2015 | Dec. 31, 2014 | |
Finite-Lived Intangible Assets [Line Items] | ||||
Amortization expense | $ 906 | $ 1,349 | $ 198 | |
Expected amortization expense, 2017 | $ 799 | 799 | ||
Expected amortization expense, 2018 | 799 | 799 | ||
Expected amortization expense, 2019 | 799 | 799 | ||
Expected amortization expense, thereafter | 495 | 495 | ||
Goodwill impairment | 22,682 | |||
Publishing | ||||
Finite-Lived Intangible Assets [Line Items] | ||||
Goodwill impairment | 22,682 | |||
Customer Relationships [Member] | ||||
Finite-Lived Intangible Assets [Line Items] | ||||
Definite-lived intangibles | 5,190 | $ 5,190 | ||
Definite-lived intangibles, useful life | 10 years | |||
Developed Technology [Member] | ||||
Finite-Lived Intangible Assets [Line Items] | ||||
Definite-lived intangibles | $ 1,520 | $ 1,520 | ||
Definite-lived intangibles, useful life | 5 years |
Goodwill and Intangible Asset42
Goodwill and Intangible Assets (Schedule of identifiable intangible assets) (Details) - USD ($) $ in Thousands | Dec. 31, 2016 | Dec. 31, 2015 |
Goodwill And Intangible Assets [Line Items] | ||
Goodwill | $ 14,201 | $ 36,883 |
Finite-Lived Intangible Assets, Gross [Abstract] | ||
Net Carrying Value | 4,872 | 5,778 |
Operating Segments | Publishing | ||
Goodwill And Intangible Assets [Line Items] | ||
Goodwill | 22,682 | |
Operating Segments | Marketing, Event Marketing and Other Services | ||
Goodwill And Intangible Assets [Line Items] | ||
Goodwill | 14,201 | 14,201 |
Finite-Lived Intangible Assets, Gross [Abstract] | ||
Cost | 6,710 | 6,710 |
Accumulated Amortization | (1,838) | (932) |
Net Carrying Value | $ 4,872 | $ 5,778 |
Long-term Incentive Plan (Narra
Long-term Incentive Plan (Narrative) (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2016 | Dec. 31, 2015 | Dec. 31, 2014 | |
Share-based compensation expense | |||
Number of shares authorized | 8,000,000 | ||
Number of options exercised | 85,926 | ||
Number of shares issued | 86,007 | ||
Number of shares previously vested redeemed in cash | 57,341 | ||
Employee Stock Option | |||
Share-based compensation expense | |||
Options, exercises in period, intrinsic Value | $ 300 | $ 100 | $ 1,099 |
Options, outstanding, intrinsic value | $ 13 | ||
Number of options granted | 0 | ||
Unrecognized compensation cost, weighted-average period | 1 year 4 months 24 days | ||
RSUs | |||
Share-based compensation expense | |||
RSUs Vested and outstanding | 237,074 | 224,911 | |
RSUs Redeemed in cash, liability | $ 769 | ||
RSUs, award vesting period | 3 years | ||
RSUs, percentage of redemption in common stock | 60.00% | ||
RSUs, percentage of redemption in cash | 40.00% | ||
Unrecognized compensation cost | $ 320 | ||
Unrecognized compensation cost, weighted-average period | 1 year | ||
RSUs | Maximum | |||
Share-based compensation expense | |||
RSUs, award vesting period | 3 years |
Long-term Incentive Plan (Sched
Long-term Incentive Plan (Schedule of stock options outstanding activity) (Details) | 12 Months Ended |
Dec. 31, 2016$ / sharesshares | |
Stock option activity rollforward | |
Number of Options, Outstanding, Beginning Balance | shares | 259,311 |
Number of Options Exercised | shares | (85,926) |
Number of Options Canceled | shares | (58,406) |
Number of Options, Outstanding, Ending Balance | shares | 114,979 |
Weighted average price per share | |
Weighted Average Exercise Price, Outstanding Beginning Balance | $ / shares | $ 8.37 |
Weighted Average Exercise Price, Exercised | $ / shares | 1.81 |
Weighted Average Exercise Price, Canceled | $ / shares | 18.33 |
Weighted Average Exercise Price, Outstanding Ending Balance | $ / shares | $ 8.21 |
Long-term Incentive Plan (Sch45
Long-term Incentive Plan (Schedule of RSU activity) (Details) $ / shares in Units, $ in Thousands | 12 Months Ended |
Dec. 31, 2016USD ($)$ / sharesshares | |
RSU non-vested rollforward | |
Number of RSUs, Outstanding, Beginning Balance | 92,355 |
Number of RSUs Granted | 202,955 |
Number of RSUs Vested and outstanding | (155,511) |
Number of RSUs Vested and issued | (18,668) |
Number of RSUs, Outstanding, Ending Balance | 121,131 |
Vested RSUs redeemed for stock, cash, and related payments | |
Issuance of Common Stock | 11,196 |
RSUs Redeemed in Cash | 7,472 |
Cash Payments at Closing Price of Stock | $ | $ 44 |
Weighted-Average Price on Date of Grant | |
Beginning balance - Weighted average price | $ / shares | $ 7.13 |
Granted | $ / shares | 5.47 |
Vested and outstanding | $ / shares | 6 |
Vested and issued | $ / shares | 8.10 |
Ending balance - Weighted average price | $ / shares | $ 5.65 |
Long-term Incentive Plan (Sch46
Long-term Incentive Plan (Schedule of compensation expense related to stock awards) (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2016 | Dec. 31, 2015 | Dec. 31, 2014 | |
RSUs Redeemable in Stocks | |||
Employee Service Share-based Compensation, Allocation of Recognized Period Costs [Line Items] | |||
Share-based compensation expense | $ 640 | $ 605 | $ 702 |
RSUs Redeemable in Cash | |||
Employee Service Share-based Compensation, Allocation of Recognized Period Costs [Line Items] | |||
Share-based compensation expense | 580 | (349) | 1,117 |
RSUs | |||
Employee Service Share-based Compensation, Allocation of Recognized Period Costs [Line Items] | |||
Share-based compensation expense | $ 1,220 | $ 256 | $ 1,819 |
Income Taxes (Narrative) (Detai
Income Taxes (Narrative) (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2016 | Dec. 31, 2015 | Dec. 31, 2014 | |
Operating Loss Carryforwards | |||
Income tax benefit (provision) | $ 2,272 | $ 1,570 | $ (5,978) |
Tax deductions related to equity compensation in excess of recognized compensation expense | 557 | 933 | |
Net refund resulting from carryback | 2,930 | ||
Income taxes paid, net of refunds | (906) | 11,613 | 8,759 |
Income taxes receivable | $ 2,976 | ||
DMV | |||
Operating Loss Carryforwards | |||
Income tax benefit (provision) | 1,570 | ||
Changes in valuation allowance | 2,090 | ||
Classified Ventures | |||
Operating Loss Carryforwards | |||
Net operating loss carryforwards utilized | $ 19,567 | ||
Federal | DMV | |||
Operating Loss Carryforwards | |||
Net operating loss | $ 3,066 |
Income Taxes (Schedule of compo
Income Taxes (Schedule of components of income tax expense (benefit)) (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2016 | Dec. 31, 2015 | Dec. 31, 2014 | |
Current | |||
Federal | $ (2,431) | $ (1,726) | $ 3,865 |
State | 1,205 | 1,729 | 1,333 |
Total current | (1,226) | 3 | 5,198 |
Deferred | |||
Federal | 1,514 | (3,988) | 28,577 |
State | (26) | (389) | 646 |
Total deferred | 1,488 | (4,377) | 29,223 |
Valuation Allowance | (2,534) | 2,804 | (28,443) |
Income Tax Provision (Benefit) | $ (2,272) | $ (1,570) | $ 5,978 |
Income Taxes (Schedule of effec
Income Taxes (Schedule of effective income tax rate reconciliation) (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2016 | Dec. 31, 2015 | Dec. 31, 2014 | |
Income Taxes [Abstract] | |||
Computed expected income tax provision (benefit) | $ (7,312) | $ (6,917) | $ 32,195 |
State income tax (net of federal benefit) | 757 | 780 | 1,314 |
Valuation allowance | (2,534) | 2,804 | (28,443) |
Goodwill impairment | 6,266 | ||
Nondeductible expenses | 249 | 493 | 81 |
Uncertain tax position reserve | (7) | 244 | |
Noncontrolling interest | (40) | 133 | 53 |
Other | 349 | 893 | 778 |
Income Tax Provision (Benefit) | $ (2,272) | $ (1,570) | $ 5,978 |
Effective income tax rate | 10.60% | 7.90% | 6.50% |
Income Taxes (Schedule of defer
Income Taxes (Schedule of deferred tax assets and liabilities) (Details) - USD ($) $ in Thousands | Dec. 31, 2016 | Dec. 31, 2015 |
Income Taxes [Abstract] | ||
Defined benefit plans | $ 19,195 | $ 20,106 |
Investments | 659 | 4,270 |
Tax depreciation less than book depreciation | 4,171 | 2,284 |
Expenses deductible for tax purposes in a year different from the year accrued | 805 | 1,366 |
Deferred compensation and benefits | 756 | 951 |
Tax amortization in excess of book amortization | (848) | (2,814) |
State taxes | 106 | 80 |
Other | 739 | 502 |
Total deferred tax assets | 25,583 | 26,745 |
Valuation allowance for deferred tax assets | $ (25,583) | (27,791) |
Net deferred tax liabilities | $ (1,046) |
Income Taxes (Schedule of unrec
Income Taxes (Schedule of unrecognized tax positions) (Details) $ in Thousands | 12 Months Ended |
Dec. 31, 2016USD ($) | |
Reconciliation of Unrecognized Tax Benefits, Excluding Amounts Pertaining to Examined Tax Returns [Roll Forward] | |
Balance at January 1 | $ 244 |
Reductions for tax positions of prior years | (7) |
Balance at December 31 | $ 237 |
Pension and Other Retirement 52
Pension and Other Retirement Plans (Narrative) (Details) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2016USD ($)employee | Dec. 31, 2015USD ($)employee | Dec. 31, 2014USD ($)employee | |
Defined Benefit Plan Disclosure | |||
Pension settlement | $ 14,964 | $ 7,648 | |
401(K) plan | |||
Defined Contribution Plans | |||
Maximum pretax contribution per employee | 100.00% | ||
Defined contribution plan, employer matching contribution, percent | 1.50% | ||
Expense recognized | $ 977 | 1,013 | 987 |
Other Postretirement Benefit Plan | |||
Defined Benefit Plan Disclosure | |||
Recorded liabilities | 1,342 | 1,429 | |
Net periodic pension (benefit) cost | (43) | 13 | 630 |
Actuarial gains (losses) | $ 74 | $ 202 | $ 15 |
Pension Plan | |||
Defined Benefit Plan Disclosure | |||
Discount rate of projected benefit obligation | 3.80% | 4.00% | |
Discount rate, net periodic pension expense (benefit) | 4.00% | 4.00% | 4.00% |
Expected long-term return on plan assets | 6.50% | 6.50% | 6.50% |
Net periodic pension (benefit) cost | $ 3,442 | $ (10,344) | $ (4,109) |
Actuarial gains (losses) | (884) | $ 2,540 | $ (49,243) |
Plan Settlements | |||
Defined benefit plan, total participants accepting pay-out | employee | 1,000 | 700 | |
Defined Benefit Plan, Settlements, Plan Assets | $ 100,877 | $ 52,919 | |
Defined Benefit Plan, Settlements, Benefit Obligation | 5,000 | 15,000 | |
Recognized settlement loss | $ 14,964 | 7,648 | |
Defined Benefit Plan, Estimated Future Employer Contributions | |||
Estimated future employer contributions in 2016 | $ 0 | ||
Defined Contribution Plans | |||
Number Of Employees Covered By Employer Sponsored Pension Plans | employee | 2,300 | ||
Pension Plan | Required Contributions [Member] | |||
Defined Benefit Plan Disclosure | |||
Employer contributions | 9,927 | ||
Pension Plan | Voluntary Contributions [Member] | |||
Defined Benefit Plan Disclosure | |||
Employer contributions | $ 20,000 | ||
Pension Plan | Equity Securities | |||
Defined Benefit Plan, Assets, Target Allocations | |||
Target allocation of plans' assets | 50.00% | ||
Defined Benefit Plan, Assets for Plan Benefits | |||
Allocation of plans' assets | 44.80% | ||
Pension Plan | Fixed Income Securities | |||
Defined Benefit Plan, Assets, Target Allocations | |||
Target allocation of plans' assets | 50.00% | ||
Defined Benefit Plan, Assets for Plan Benefits | |||
Allocation of plans' assets | 55.20% |
Pension and Other Retirement 53
Pension and Other Retirement Plans (Schedule of defined benefit plans disclosures) (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2016 | Dec. 31, 2015 | Dec. 31, 2014 | |
Defined Benefit Plan, Change in Plan Assets [Roll Forward] | |||
Noncurrent liability - Accrued benefit cost | $ 54,843 | $ 57,446 | |
Pension Plan | |||
Defined Benefit Plan, Change in Benefit Obligation [Roll forward] | |||
Projected benefit obligation at beginning of year | 262,027 | 396,656 | |
Interest cost | 10,098 | 14,161 | $ 17,320 |
Actuarial (gain) loss | 1,368 | (27,307) | |
Benefit payments | (14,468) | (121,483) | |
Projected benefit obligation at end of year | 259,025 | 262,027 | 396,656 |
Defined Benefit Plan, Change in Plan Assets [Roll Forward] | |||
Fair value of plan assets at beginning of year | 204,581 | 330,797 | |
Return on plan assets | 14,069 | (4,733) | |
Benefit payments | (14,468) | (121,483) | |
Fair value of plan assets at end of year | 204,182 | 204,581 | $ 330,797 |
Funded status | (54,843) | (57,446) | |
Noncurrent liability - Accrued benefit cost | 54,843 | 57,446 | |
Accumulated benefit obligation | $ 259,025 | $ 262,027 |
Pension and Other Retirement 54
Pension and Other Retirement Plans (Schedule of net periodic pension benefit expense) (Details) - Pension Plan - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2016 | Dec. 31, 2015 | Dec. 31, 2014 | |
Defined Benefit Plan Disclosure | |||
Interest cost | $ 10,098 | $ 14,161 | $ 17,320 |
Expected return on plans' assets | (13,585) | (20,033) | (20,859) |
Amortization of actuarial loss | 45 | 1,252 | |
Recognized settlement loss | 14,964 | 7,648 | |
Net periodic pension expense (benefit) | $ (3,442) | $ 10,344 | $ 4,109 |
Pension and Other Retirement 55
Pension and Other Retirement Plans (Schedule of fair value and allocation of plan assets) (Details) - Pension Plan - USD ($) $ in Thousands | Dec. 31, 2016 | Dec. 31, 2015 | Dec. 31, 2014 |
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis | |||
Fair value of plan assets | $ 204,182 | $ 204,581 | $ 330,797 |
Cash and money market funds | |||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis | |||
Fair value of plan assets | 1,865 | 4,178 | |
U.S. Equity Securities | |||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis | |||
Fair value of plan assets | 58,645 | 62,314 | |
International Equity Securities | |||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis | |||
Fair value of plan assets | 32,079 | 28,669 | |
Domestic Corporate and Government Debt Securities | |||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis | |||
Fair value of plan assets | 52,136 | 54,427 | |
Domestic Corporate Debt Securities | |||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis | |||
Fair value of plan assets | 51,768 | 49,074 | |
International Corporate and Government Debt Securities | |||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis | |||
Fair value of plan assets | 7,689 | 5,919 | |
Level I - Fair Value, Inputs | |||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis | |||
Fair value of plan assets | 12,689 | 8,512 | |
Level I - Fair Value, Inputs | Cash and money market funds | |||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis | |||
Fair value of plan assets | 1,865 | 4,178 | |
Level I - Fair Value, Inputs | International Equity Securities | |||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis | |||
Fair value of plan assets | 10,824 | 4,334 | |
Level II - Fair Value, Inputs | |||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis | |||
Fair value of plan assets | 191,493 | 196,069 | |
Level II - Fair Value, Inputs | U.S. Equity Securities | |||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis | |||
Fair value of plan assets | 58,645 | 62,314 | |
Level II - Fair Value, Inputs | International Equity Securities | |||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis | |||
Fair value of plan assets | 21,255 | 24,335 | |
Level II - Fair Value, Inputs | Domestic Corporate and Government Debt Securities | |||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis | |||
Fair value of plan assets | 52,136 | 54,427 | |
Level II - Fair Value, Inputs | Domestic Corporate Debt Securities | |||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis | |||
Fair value of plan assets | 51,768 | 49,074 | |
Level II - Fair Value, Inputs | International Corporate and Government Debt Securities | |||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis | |||
Fair value of plan assets | $ 7,689 | $ 5,919 |
Pension and Other Retirement 56
Pension and Other Retirement Plans (Schedule of expected benefit payments) (Details) $ in Thousands | Dec. 31, 2016USD ($) |
Defined Benefit Plan, Expected Future Benefit Payments, Rolling Maturity [Abstract] | |
2,017 | $ 15,859 |
2,018 | 16,030 |
2,019 | 16,100 |
2,020 | 16,043 |
2,021 | 16,039 |
2022-2026 | $ 79,266 |
Shareholders' Equity (Narrative
Shareholders' Equity (Narrative) (Details) - USD ($) $ / shares in Units, $ in Thousands | 12 Months Ended | ||||
Dec. 31, 2016 | Dec. 31, 2015 | Dec. 31, 2014 | Mar. 02, 2017 | Dec. 09, 2016 | |
Dividends Payable, Date Declared | Mar. 2, 2017 | ||||
Dividends Payable, Amount Per Share | $ 0.08 | ||||
Dividends Payable, Date of Record | May 12, 2017 | ||||
Dividends Payable, Date to be Paid | Jun. 2, 2017 | ||||
Dividends Payable, Current | $ 1,763 | ||||
Stock Repurchase Program, Number of Shares Authorized to be Repurchased | 2,500,000 | ||||
Amount to be Amortized from Accumulated Other Comprehensive Income (Loss) Next Fiscal Year | $ 371 | ||||
Fiscal year 2016 | |||||
Dividends Payable, Date Declared | Dec. 9, 2016 | ||||
Dividends Payable, Date of Record | Feb. 10, 2017 | ||||
Dividends Payable, Date to be Paid | Mar. 3, 2017 | ||||
Special Dividend Declared December 11, 2014 | |||||
Dividends | $ 50,148 | ||||
Dividend paid, per share | $ 2.25 | ||||
Subsequent Event [Member] | |||||
Dividends Payable, Amount Per Share | $ 0.08 | ||||
Common Stock [Member] | Series A | |||||
Total cost of share purchased | $ 3,146 | $ 4,974 | |||
Treasury Stock [Member] | Series A | |||||
Treasury stock purchases, shares | 472,245 | 449,436 |
Shareholders' Equity (Changes i
Shareholders' Equity (Changes in accumulated other comprehensive loss) (Details) - USD ($) $ in Thousands | 12 Months Ended | |
Dec. 31, 2016 | Dec. 31, 2015 | |
Accumulated Other Comprehensive Income (Loss) [Line Items] | ||
Balance, beginning of period | $ (38,442) | $ (57,367) |
Amortization | (56) | 16,183 |
Actuarial gains (losses) | (810) | 2,742 |
Balance, end of period | (39,308) | (38,442) |
Pension Plan | ||
Accumulated Other Comprehensive Income (Loss) [Line Items] | ||
Balance, beginning of period | (38,898) | (57,654) |
Amortization | 45 | 16,216 |
Actuarial gains (losses) | (884) | 2,540 |
Balance, end of period | (39,737) | (38,898) |
Other Postretirement Benefit Plan | ||
Accumulated Other Comprehensive Income (Loss) [Line Items] | ||
Balance, beginning of period | 456 | 287 |
Amortization | (101) | (33) |
Actuarial gains (losses) | 74 | 202 |
Balance, end of period | $ 429 | $ 456 |
Earnings Per Share (Narrative)
Earnings Per Share (Narrative) (Details) - shares | 12 Months Ended | ||
Dec. 31, 2016 | Dec. 31, 2015 | Dec. 31, 2014 | |
Earnings Per Share [Abstract] | |||
Antidilutive Securities Excluded from Computation of Earnings Per Share, Amount | 473,184 | 576,577 | 729,611 |
Earnings Per Share (Schedule of
Earnings Per Share (Schedule of earnings per share reconciliation) (Details) - USD ($) $ / shares in Units, $ in Thousands | 3 Months Ended | 12 Months Ended | |||||||||
Dec. 31, 2016 | Sep. 30, 2016 | Jun. 30, 2016 | Mar. 31, 2016 | Dec. 31, 2015 | Sep. 30, 2015 | Jun. 30, 2015 | Mar. 31, 2015 | Dec. 31, 2016 | Dec. 31, 2015 | Dec. 31, 2014 | |
Earnings Per Share [Abstract] | |||||||||||
Net income (loss) attributable to A. H. Belo Corporation | $ (18,874) | $ (497) | $ 693 | $ (632) | $ (13,657) | $ (3,956) | $ (592) | $ 363 | $ (19,310) | $ (17,842) | $ 92,929 |
Less: Income (loss) from discontinued operations | $ (1) | $ (52) | $ 2 | $ (12) | (63) | 6,770 | |||||
Less: Dividends to participating securities | 140 | 115 | 2,118 | ||||||||
Net income (loss) available to common shareholders from continuing operations | $ (19,450) | $ (17,894) | $ 84,041 | ||||||||
Shares (Denominator) | |||||||||||
Weighted average common shares outstanding (basic) | 21,620,539 | 21,408,940 | 21,899,602 | ||||||||
Effect of dilutive securities | 106,420 | ||||||||||
Adjusted weighted average shares outstanding (diluted) | 21,620,539 | 21,408,940 | 22,006,022 | ||||||||
Earnings Per Share from Continuing Operations | |||||||||||
Basic | $ (0.87) | $ (0.02) | $ 0.03 | $ (0.03) | $ (0.64) | $ (0.18) | $ (0.03) | $ 0.02 | $ (0.90) | $ (0.84) | $ 3.84 |
Diluted | $ (0.87) | $ (0.02) | $ 0.03 | $ (0.03) | $ (0.64) | $ (0.18) | $ (0.03) | $ 0.02 | $ (0.90) | $ (0.84) | $ 3.82 |
Commitments and Contingencies61
Commitments and Contingencies (Narrative) (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2016 | Dec. 31, 2015 | Dec. 31, 2014 | |
Pro-Rata Distributions [Line Items] | |||
Lease term | 16 years | ||
Lease expense for property and equipment | $ 1,988 | $ 1,856 | $ 1,724 |
Possible losses from legal dispute, minimum | 0 | ||
Possible losses from legal dispute, maximum | 1,500 | ||
Distributions to non-controlling interests | $ 407 | ||
Fiscal year 2016 | |||
Pro-Rata Distributions [Line Items] | |||
Pro-rata distributions, percentage of free-cash-flow | 50.00% | ||
Fiscal year 2015 | |||
Pro-Rata Distributions [Line Items] | |||
Pro-rata distributions, percentage of free-cash-flow | 100.00% | ||
DMV | |||
Pro-Rata Distributions [Line Items] | |||
Distributions to non-controlling interests | $ 264 |
Commitments and Contingencies62
Commitments and Contingencies (Operating lease and capital commitment obligations) (Details) $ in Thousands | Dec. 31, 2016USD ($) |
Commitments and Contingencies [Abstract] | |
Operating leases commitments, Total | $ 36,795 |
2,017 | 2,180 |
2,018 | 2,586 |
2,019 | 3,038 |
2,020 | 2,403 |
2,021 | 1,904 |
Thereafter | 24,684 |
Capital lease commitments | |
Capital commitments, Total | 319 |
2,017 | 319 |
2,018 | |
2,019 | |
2,020 | |
2,021 | |
Thereafter | |
Total commitments | |
Total commitments | 37,114 |
2,017 | 2,499 |
2,018 | 2,586 |
2,019 | 3,038 |
2,020 | 2,403 |
2,021 | 1,904 |
Thereafter | $ 24,684 |
Redeemable Noncontrolling Int63
Redeemable Noncontrolling Interest (Details) - USD ($) $ in Thousands | 12 Months Ended | |
Dec. 31, 2016 | Dec. 31, 2015 | |
Noncontrolling Interest [Line Items] | ||
Noncontrolling interest - redeemable | $ 2,670 | $ 1,421 |
Redeemable between 2nd and 3rd anniversaries | ||
Noncontrolling Interest [Line Items] | ||
Noncontrolling interest, ownership percentage by noncontrolling owners (percent) | 25.00% | |
Redeemable between 4th and 5th anniversaries | ||
Noncontrolling Interest [Line Items] | ||
Noncontrolling interest, ownership percentage by noncontrolling owners (percent) | 50.00% | |
DMV | ||
Noncontrolling Interest [Line Items] | ||
Change in redeemable non-controlling interest | $ 1,295 | |
DMV | Distributions Related To Earnings [Member] | ||
Noncontrolling Interest [Line Items] | ||
Change in redeemable non-controlling interest | 53 | |
DMV | Distributions Related To 2015 Free Cash Flow [Member] | ||
Noncontrolling Interest [Line Items] | ||
Change in redeemable non-controlling interest | $ 99 |
Supplemental Cash Flow Data (De
Supplemental Cash Flow Data (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2016 | Dec. 31, 2015 | Dec. 31, 2014 | |
Supplemental Cash Flow Data [Abstract] | |||
Income taxes paid, net of refunds | $ (906) | $ 11,613 | $ 8,759 |
Investments in property and equipment not paid | 1,203 | ||
Receivable for asset sales proceeds | 1,000 | ||
Dividends payable at year end | $ 1,763 | 50,148 | |
Receivable for investment sales proceeds | 3,280 | ||
Impairment of equity method investment | 1,871 | ||
Noncash contributions by noncontrolling interests | $ 1,210 | $ 183 |
Discontinued Operations And S65
Discontinued Operations And Sales of Assets (Details) $ in Thousands | Dec. 27, 2016USD ($) | Dec. 22, 2016USD ($) | Dec. 31, 2016USD ($) | Dec. 31, 2015USD ($) | Dec. 31, 2014USD ($)a |
Income Statement, Balance Sheet and Additional Disclosures by Disposal Groups, Including Discontinued Operations [Line Items] | |||||
Net proceeds from sale of land and building | $ 5,636 | $ 5,866 | $ 10,085 | ||
Gain (loss) on sale or disposition of assets | $ 1,950 | (478) | 2,787 | ||
Providence, Rhode Island | |||||
Income Statement, Balance Sheet and Additional Disclosures by Disposal Groups, Including Discontinued Operations [Line Items] | |||||
Net proceeds from sale of land and building | $ 921 | ||||
Gain (loss) on sale or disposition of assets | (216) | ||||
Note receivable | $ 1,000 | ||||
Notes Receivable Term | 3 years | ||||
Dallas, Texas [Member] | |||||
Income Statement, Balance Sheet and Additional Disclosures by Disposal Groups, Including Discontinued Operations [Line Items] | |||||
Net proceeds from sale of land and building | $ 4,458 | 6,677 | |||
Gain (loss) on sale or disposition of assets | $ 1,842 | $ 1,827 | |||
Area of land sold | a | 97 | ||||
Riverside, California And Dallas, Texas [Member] | |||||
Income Statement, Balance Sheet and Additional Disclosures by Disposal Groups, Including Discontinued Operations [Line Items] | |||||
Net proceeds from sale of land and building | $ 3,408 | ||||
Gain (loss) on sale or disposition of assets | 862 | ||||
Providence Journal | Discontinued Operations [Member] | |||||
Income Statement, Balance Sheet and Additional Disclosures by Disposal Groups, Including Discontinued Operations [Line Items] | |||||
Purchase price | 46,000 | ||||
Working capital adjustment | 2,654 | ||||
Closing costs | 110 | ||||
Selling expense | 3,237 | ||||
Purchase price and working capital adjustment | $ 17,104 | ||||
Land and Building Sale | |||||
Income Statement, Balance Sheet and Additional Disclosures by Disposal Groups, Including Discontinued Operations [Line Items] | |||||
Net proceeds from sale of land and building | 6,119 | ||||
Gain (loss) on sale or disposition of assets | (265) | ||||
Escrow deposit returned | $ 328 | ||||
Building Demolition | |||||
Income Statement, Balance Sheet and Additional Disclosures by Disposal Groups, Including Discontinued Operations [Line Items] | |||||
Gain (loss) on sale or disposition of assets | $ (251) |
Quarterly Results of Operatio66
Quarterly Results of Operations (Narrative) (Details) - USD ($) $ in Thousands | 3 Months Ended | 12 Months Ended | |||
Dec. 31, 2016 | Dec. 31, 2015 | Dec. 31, 2016 | Dec. 31, 2015 | Dec. 31, 2014 | |
Goodwill, Impairment Loss | $ 22,682 | ||||
Pension settlement | $ 14,964 | $ 7,648 | |||
Publishing | |||||
Goodwill, Impairment Loss | $ 22,682 | ||||
Publishing | Operating Segments | |||||
Goodwill, Impairment Loss | $ 22,682 | $ 22,682 | |||
Pension settlement | $ 14,964 | $ 14,964 | $ 7,648 |
Quarterly Results of Operatio67
Quarterly Results of Operations (Schedule of Quarterly Financial Information ) (Details) - USD ($) $ / shares in Units, $ in Thousands | 3 Months Ended | 12 Months Ended | |||||||||
Dec. 31, 2016 | Sep. 30, 2016 | Jun. 30, 2016 | Mar. 31, 2016 | Dec. 31, 2015 | Sep. 30, 2015 | Jun. 30, 2015 | Mar. 31, 2015 | Dec. 31, 2016 | Dec. 31, 2015 | Dec. 31, 2014 | |
Net Operating Revenue: | |||||||||||
Net operating revenues | $ 66,095 | $ 64,780 | $ 66,626 | $ 62,483 | $ 73,088 | $ 66,908 | $ 66,676 | $ 65,436 | $ 259,984 | $ 272,108 | $ 272,788 |
Operating income (loss) | (24,135) | (489) | 2,659 | (1,781) | (9,552) | (3,102) | (535) | (5,106) | (23,746) | (18,295) | (7,686) |
Income (Loss) from continuing operations | (18,809) | (452) | 674 | (593) | (13,852) | (3,967) | (694) | 319 | (19,180) | (18,194) | 86,007 |
Income (Loss) from discontinued operations | (1) | (52) | 2 | (12) | (63) | 6,770 | |||||
Net Income (Loss) | (18,809) | (452) | 674 | (593) | (13,853) | (4,019) | (692) | 307 | (19,180) | (18,257) | 92,777 |
Net Income (Loss) Attributable to A. H. Belo Corporation | $ (18,874) | $ (497) | $ 693 | $ (632) | $ (13,657) | $ (3,956) | $ (592) | $ 363 | $ (19,310) | $ (17,842) | $ 92,929 |
Net income (loss) per share from continuing operations | |||||||||||
Basic | $ (0.87) | $ (0.02) | $ 0.03 | $ (0.03) | $ (0.64) | $ (0.18) | $ (0.03) | $ 0.02 | $ (0.90) | $ (0.84) | $ 3.84 |
Diluted | $ (0.87) | $ (0.02) | $ 0.03 | $ (0.03) | $ (0.64) | $ (0.18) | $ (0.03) | $ 0.02 | $ (0.90) | $ (0.84) | $ 3.82 |