Document and Entity Information
Document and Entity Information | 3 Months Ended |
Sep. 30, 2016shares | |
Document Information [Line Items] | |
Entity Registrant Name | MEREDITH CORP |
Entity Central Index Key | 65,011 |
Document Type | 10-Q |
Document Period End Date | Sep. 30, 2016 |
Amendment Flag | false |
Document Fiscal Year Focus | 2,017 |
Document Fiscal Period Focus | Q1 |
Current Fiscal Year End Date | --06-30 |
Entity Current Reporting Status | Yes |
Entity Filer Category | Large Accelerated Filer |
Company Common Stock [Member] | |
Document Information [Line Items] | |
Entity Common Stock, Shares Outstanding | 39,275,992 |
Class B Shares [Member] | |
Document Information [Line Items] | |
Entity Common Stock, Shares Outstanding | 5,257,754 |
Condensed Consolidated Balance
Condensed Consolidated Balance Sheets - USD ($) $ in Thousands | Sep. 30, 2016 | Jun. 30, 2016 |
Current assets | ||
Cash and cash equivalents | $ 32,128 | $ 24,970 |
Accounts receivable, net | 273,387 | 273,927 |
Inventories | 21,931 | 20,678 |
Current portion of subscription acquisition costs | 133,917 | 133,338 |
Current portion of broadcast rights | 14,827 | 4,220 |
Other current assets | 25,525 | 24,023 |
Total current assets | 501,715 | 481,156 |
Property, plant, and equipment | 530,369 | 530,052 |
Less accumulated depreciation | (346,478) | (339,099) |
Net property, plant, and equipment | 183,891 | 190,953 |
Subscription acquisition costs | 96,968 | 95,960 |
Broadcast rights | 4,900 | 4,565 |
Other assets | 56,984 | 57,151 |
Intangible assets, net | 909,093 | 913,877 |
Goodwill | 883,129 | 883,129 |
Total assets | 2,636,680 | 2,626,791 |
Current liabilities | ||
Current portion of long-term debt | 75,000 | 75,000 |
Current portion of long-term broadcast rights payable | 15,795 | 4,649 |
Accounts payable | 74,496 | 82,107 |
Accrued expenses and other liabilities | 111,094 | 116,777 |
Current portion of unearned subscription revenues | 198,780 | 199,359 |
Total current liabilities | 475,165 | 477,892 |
Long-term debt | 622,402 | 618,506 |
Long-term broadcast rights payable | 5,992 | 5,524 |
Unearned subscription revenues | 130,162 | 128,534 |
Deferred income taxes | 346,297 | 336,346 |
Other noncurrent liabilities | 152,221 | 170,946 |
Total liabilities | 1,732,239 | 1,737,748 |
Shareholders' equity | ||
Additional paid-in capital | 56,155 | 54,282 |
Retained earnings | 830,247 | 818,706 |
Accumulated other comprehensive loss | (26,495) | (28,501) |
Total shareholders' equity | 904,441 | 889,043 |
Total liabilities and shareholders' equity | 2,636,680 | 2,626,791 |
Series Preferred Stock [Member] | ||
Shareholders' equity | ||
Series preferred stock | 0 | 0 |
Common Stock [Member] | ||
Shareholders' equity | ||
Common stock | 39,276 | 39,272 |
Common Class B [Member] | ||
Shareholders' equity | ||
Common stock | $ 5,258 | $ 5,284 |
Condensed Consolidated Statemen
Condensed Consolidated Statements of Earnings - USD ($) shares in Thousands, $ in Thousands | 3 Months Ended | |
Sep. 30, 2016 | Sep. 30, 2015 | |
Revenues | ||
Advertising | $ 225,889 | $ 218,670 |
Circulation | 68,668 | 72,175 |
All other | 105,322 | 93,821 |
Total revenues | 399,879 | 384,666 |
Operating expenses | ||
Production, distribution, and editorial | 150,228 | 153,178 |
Selling, general, and administrative | 174,993 | 174,730 |
Depreciation and amortization | 13,896 | 15,080 |
Merger-related costs | 0 | 12,666 |
Total operating expenses | 339,117 | 355,654 |
Income from operations | 60,762 | 29,012 |
Interest expense, net | (4,749) | (5,313) |
Earnings before income taxes | 56,013 | 23,699 |
Income taxes | (22,040) | (12,670) |
Net earnings | $ 33,973 | $ 11,029 |
Basic earnings per share | ||
Basic earnings per share (in usd per share) | $ 0.76 | $ 0.25 |
Basic average shares outstanding (in shares) | 44,558 | 44,612 |
Diluted earnings per share | ||
Diluted earnings per share (in usd per share) | $ 0.75 | $ 0.24 |
Diluted average shares outstanding (in shares) | 45,484 | 45,366 |
Dividends paid per share (in usd per share) | $ 0.4950 | $ 0.4575 |
Condensed Consolidated Stateme4
Condensed Consolidated Statements of Comprehensive Income - USD ($) $ in Thousands | 3 Months Ended | |
Sep. 30, 2016 | Sep. 30, 2015 | |
Comprehensive income | ||
Net earnings | $ 33,973 | $ 11,029 |
Other comprehensive income, net of income taxes | ||
Pension and other postretirement benefit plans activity | 537 | (1) |
Unrealized gain (loss) on interest rate swaps | 1,469 | (2,208) |
Other comprehensive income (loss), net of income taxes | 2,006 | (2,209) |
Comprehensive income | $ 35,979 | $ 8,820 |
Condensed Consolidated Stateme5
Condensed Consolidated Statement of Shareholders' Equity - 3 months ended Sep. 30, 2016 - USD ($) $ in Thousands | Total | Common Stock [Member] | Common Class B [Member] | Common Stock [Member]Common Stock [Member] | Common Stock [Member]Common Class B [Member] | Additional Paid-in Capital [Member] | Retained Earnings [Member] | Retained Earnings [Member]Common Stock [Member] | Retained Earnings [Member]Common Class B [Member] | Accumulated Other Comprehensive Loss [Member] |
Beginning balance at Jun. 30, 2016 | $ 889,043 | $ 39,272 | $ 5,284 | $ 54,282 | $ 818,706 | $ (28,501) | ||||
Increase (Decrease) in Stockholders' Equity [Roll Forward] | ||||||||||
Net earnings | 33,973 | 33,973 | ||||||||
Other comprehensive income, net of income taxes | 2,006 | 2,006 | ||||||||
Shares issued under incentive plans, net of forfeitures | 13,019 | 317 | 12,702 | |||||||
Purchases of Company stock | (18,378) | (339) | (18,039) | |||||||
Share-based compensation | 6,358 | 6,358 | ||||||||
Conversion of Class B to common stock | 0 | (26) | (26) | |||||||
Dividends paid | $ (19,817) | $ (2,615) | $ (19,817) | $ (2,615) | ||||||
Tax benefit from share-based awards | 852 | 852 | ||||||||
Ending balance at Sep. 30, 2016 | $ 904,441 | $ 39,276 | $ 5,258 | $ 56,155 | $ 830,247 | $ (26,495) |
Condensed Consolidated Stateme6
Condensed Consolidated Statement of Shareholders' Equity (Parentheticals) - Common Stock [Member] - $ / shares | Sep. 30, 2016 | Jun. 30, 2016 |
Common Stock [Member] | ||
Common stock, par value (in usd per share) | $ 1 | $ 1 |
Common Class B [Member] | ||
Common stock, par value (in usd per share) | $ 1 | $ 1 |
Condensed Consolidated Stateme7
Condensed Consolidated Statements of Cash Flows - USD ($) $ in Thousands | 3 Months Ended | |
Sep. 30, 2016 | Sep. 30, 2015 | |
Cash flows from operating activities | ||
Net earnings | $ 33,973 | $ 11,029 |
Adjustments to reconcile net earnings to net cash provided by operating activities | ||
Depreciation | 9,112 | 10,296 |
Amortization | 4,784 | 4,784 |
Share-based compensation | 6,358 | 5,850 |
Deferred income taxes | 8,700 | 6,427 |
Amortization of broadcast rights | 4,249 | 4,209 |
Payments for broadcast rights | (4,042) | (4,040) |
Fair value adjustments to contingent consideration | 708 | (1,000) |
Excess tax benefits from share-based payments | (2,071) | (1,356) |
Changes in assets and liabilities | (26,411) | (33,370) |
Net cash provided by operating activities | 35,360 | 2,829 |
Cash flows from investing activities | ||
Additions to property, plant, and equipment | (2,232) | (1,840) |
Proceeds from disposition of assets | 0 | 1,767 |
Net cash used in investing activities | (2,232) | (73) |
Cash flows from financing activities | ||
Proceeds from issuance of long-term debt | 20,000 | 47,500 |
Repayments of long-term debt | (16,250) | (23,125) |
Dividends paid | (22,432) | (20,668) |
Purchases of Company stock | (18,378) | (5,738) |
Proceeds from common stock issued | 13,019 | 5,026 |
Payment of acquisition-related contingent consideration | (4,000) | 0 |
Excess tax benefits from share-based payments | 2,071 | 1,356 |
Net cash provided by (used in) financing activities | (25,970) | 4,351 |
Net increase in cash and cash equivalents | 7,158 | 7,107 |
Cash and cash equivalents, at beginning of period | 24,970 | 22,833 |
Cash and cash equivalents, at end of period | $ 32,128 | $ 29,940 |
Summary of Significant Accounti
Summary of Significant Accounting Policies | 3 Months Ended |
Sep. 30, 2016 | |
Accounting Policies [Abstract] | |
Summary of Significant Accounting Policies | Summary of Significant Accounting Policies Basis of Presentation —The condensed consolidated financial statements include the accounts of Meredith Corporation and its wholly owned subsidiaries (Meredith or the Company), after eliminating all significant intercompany balances and transactions. Meredith does not have any off-balance sheet arrangements. The Company's use of special-purpose entities is limited to Meredith Funding Corporation, whose activities are fully consolidated in Meredith's condensed consolidated financial statements. The accompanying unaudited condensed consolidated financial statements have been prepared pursuant to the rules and regulations of the United States Securities and Exchange Commission (SEC). Accordingly, they do not include all of the information and notes required by accounting principles generally accepted in the United States of America (GAAP) for complete financial statements. These condensed consolidated financial statements should be read in conjunction with the Company's audited consolidated financial statements, which are included in Meredith's Annual Report on Form 10‑K for the year ended June 30, 2016 , filed with the SEC. The condensed consolidated financial statements as of September 30, 2016 , and for the three months ended September 30, 2016 and 2015 , are unaudited but, in management's opinion, include all normal, recurring adjustments necessary for a fair presentation of the results of interim periods. The year-end condensed consolidated balance sheet data as of June 30, 2016 , were derived from audited financial statements, but do not include all disclosures required by GAAP. The results of operations for interim periods are not necessarily indicative of the results to be expected for the entire fiscal year. Adopted Accounting Pronouncements —In April 2015, the Financial Accounting Standards Board (FASB) issued guidance on the presentation of debt issuance costs. The new standard requires that debt issuance costs be recorded as a reduction from the face amount of the related debt rather than recorded as a deferred asset, with amortization recorded as interest expense, rather than recording as a deferred asset. The Company adopted this guidance in the first quarter of fiscal 2017, and it was retrospectively applied to the prior period, as required. Adoption changed the classification of debt issuance costs from other assets to current portion of long-term debt or long-term debt based on the classification of the related debt instrument. As a result, other assets and long-term debt each decreased by $1.5 million as of June 30, 2016, compared to amounts previously reported. Additionally, the format of the long-term debt disclosure was updated to include debt issuance costs separately. The adoption did not have an impact on our results of operations or cash flows. In April 2015, the FASB issued guidance on the presentation of cloud computing arrangements that include a software license. The new guidance requires capitalization of the software license fee as internal-use software if certain criteria are met, otherwise the costs are expensed as incurred. The standard was prospectively adopted by the Company in the first quarter of fiscal 2017. The adoption of the standard had no impact to the Company's consolidated financial statements. In June 2015, the FASB issued an accounting standards update that made technical corrections to the FASB Accounting Standards Codification. These technical corrections are divided into four categories: amendments related to differences between original guidance and the codification, guidance clarification and reference corrections, minor structural changes to simplify the codification, and minor improvements that are not expected to have a significant impact on current accounting practice. The amendments were effective for the Company in the first quarter of fiscal 2017. The adoption of the amendments had no impact to the Company's consolidated financial statements. Pending Accounting Pronouncements —In August 2016, the FASB issued an accounting standards update clarifying the classification of certain cash receipts and payments in the statement of cash flows. The update is intended to reduce the diversity in practice around how certain transactions are classified within the statement of cash flows. Retrospective adoption is required in our first quarter of fiscal 2019 with early adoption permitted, including adoption in an interim period. The Company is currently evaluating the impact that this update will have on its consolidated financial statements and the timing of adoption. |
Inventories
Inventories | 3 Months Ended |
Sep. 30, 2016 | |
Inventory Disclosure [Abstract] | |
Inventories | Inventories Major components of inventories are summarized below. Of total net inventory values shown, 51 percent are under the last-in first-out (LIFO) method at September 30, 2016 , and 54 percent at June 30, 2016 . (In thousands) September 30, 2016 June 30, Raw materials $ 8,643 $ 11,698 Work in process 14,517 10,107 Finished goods 1,732 1,834 24,892 23,639 Reserve for LIFO cost valuation (2,961 ) (2,961 ) Inventories $ 21,931 $ 20,678 |
Intangible Assets and Goodwill
Intangible Assets and Goodwill | 3 Months Ended |
Sep. 30, 2016 | |
Goodwill and Intangible Assets Disclosure [Abstract] | |
Intangible Assets and Goodwill | Intangible Assets and Goodwill Intangible assets consist of the following: September 30, 2016 June 30, 2016 (In thousands) Gross Accumulated Net Gross Accumulated Net Intangible assets subject to amortization National media Advertiser relationships $ 18,610 $ (11,985 ) $ 6,625 $ 18,610 $ (10,670 ) $ 7,940 Customer lists 3,080 (2,545 ) 535 5,230 (4,310 ) 920 Other 17,925 (7,727 ) 10,198 19,425 (8,685 ) 10,740 Local media Network affiliation agreements 229,309 (137,396 ) 91,913 229,309 (135,789 ) 93,520 Retransmission agreements 21,229 (7,877 ) 13,352 21,229 (6,993 ) 14,236 Other 1,023 (279 ) 744 1,214 (419 ) 795 Total $ 291,176 $ (167,809 ) 123,367 $ 295,017 $ (166,866 ) 128,151 Intangible assets not subject to amortization National media Internet domain names 7,827 7,827 Trademarks 153,215 153,215 Local media FCC licenses 624,684 624,684 Total 785,726 785,726 Intangible assets, net $ 909,093 $ 913,877 Amortization expense was $4.8 million and $4.8 million for the three months ended September 30, 2016 and 2015 , respectively. Annual amortization expense for intangible assets is expected to be as follows: $18.0 million in fiscal 2017 , $15.0 million in fiscal 2018 , $12.5 million in fiscal 2019 , $11.6 million in fiscal 2020 , and $7.6 million in fiscal 2021 . Changes in the carrying amount of goodwill were as follows: Three months ended September 30, 2016 2015 (In thousands) National Local Total National Local Total Balance at beginning of period Goodwill $ 931,303 $ 68,775 $ 1,000,078 $ 932,471 $ 68,775 $ 1,001,246 Accumulated impairment losses (116,949 ) — (116,949 ) — — — Total goodwill 814,354 68,775 883,129 932,471 68,775 1,001,246 Acquisition adjustments — — — (2,986 ) — (2,986 ) Balance at end of period Goodwill 931,303 68,775 1,000,078 929,485 68,775 998,260 Accumulated impairment losses (116,949 ) — (116,949 ) — — — Total goodwill $ 814,354 $ 68,775 $ 883,129 $ 929,485 $ 68,775 $ 998,260 |
Restructuring Accrual
Restructuring Accrual | 3 Months Ended |
Sep. 30, 2016 | |
Restructuring and Related Activities [Abstract] | |
Restructuring Accrual | Restructuring Accrual During the first quarter of fiscal 2016, management committed to a performance improvement plan that included selected workforce reductions. In connection with this plan, the Company recorded pre-tax restructuring charges totaling $3.4 million for severance and related benefit costs related to the involuntary termination of employees. The plan affected approximately 45 employees. The Company also recorded $1.1 million in reversals of excess restructuring reserves accrued in prior fiscal years. The severance and related benefit costs and the credits for the reversal of excess restructuring reserves are recorded in the selling, general, and administrative line of the Condensed Consolidated Statements of Earnings. Details of changes in the Company's restructuring accrual are as follows: Three months ended September 30, 2016 2015 (In thousands) Balance at beginning of period $ 7,388 $ 15,731 Severance accruals — 3,366 Cash payments (2,267 ) (3,705 ) Reversal of excess accrual — (1,070 ) Balance at end of period $ 5,121 $ 14,322 |
Long-term Debt
Long-term Debt | 3 Months Ended |
Sep. 30, 2016 | |
Debt Disclosure [Abstract] | |
Long-term Debt | Long-term Debt Long-term debt consists of the following: (In thousands) September 30, 2016 June 30, Variable-rate credit facilities Asset-backed bank facility of $100 million, due 10/20/2017 $ 80,000 $ 80,000 Revolving credit facility of $200 million, due 3/27/2019 50,000 40,000 Term loan due 3/27/2019 218,750 225,000 Private placement notes 3.04% senior notes, due 3/1/2017 50,000 50,000 3.04% senior notes, due 3/1/2018 50,000 50,000 Floating rate senior notes, due 12/19/2022 100,000 100,000 Floating rate senior notes, due 2/28/2024 150,000 150,000 Total long-term debt 698,750 695,000 Unamortized debt issuance costs (1,348 ) (1,494 ) Current portion of long-term debt (75,000 ) (75,000 ) Long-term debt $ 622,402 $ 618,506 In connection with the asset-backed bank facility, Meredith entered into a revolving agreement to sell all of its rights, title, and interest in the majority of its accounts receivable related to advertising and miscellaneous revenues to Meredith Funding Corporation, a special-purpose entity established to purchase accounts receivable from Meredith. At September 30, 2016 , $169.1 million of accounts receivable net of reserves was outstanding under the agreement. Meredith Funding Corporation in turn may sell receivable interests to a major national bank. In consideration of the sale, Meredith receives cash and a subordinated note, bearing interest at the prime rate, 3.50 percent at September 30, 2016 , from Meredith Funding Corporation. The agreement is structured as a true sale under which the creditors of Meredith Funding Corporation will be entitled to be satisfied out of the assets of Meredith Funding Corporation prior to any value being returned to Meredith or its creditors. The accounts of Meredith Funding Corporation are fully consolidated in Meredith's condensed consolidated financial statements. The Company holds interest rate swap agreements to hedge variable interest rate risk on the $250.0 million floating-rate senior notes and on $50.0 million of the term loan. The expiration of the swaps is as follows: $50.0 million in August 2018, $100.0 million in March 2019, and $150.0 million in August 2019. Under the swaps the Company will pay fixed rates of interest ( 1.36 percent on the swap maturing in August 2018, 1.53 percent on the swap maturing in March 2019, and 1.76 percent on the swaps maturing in August 2019) and receive variable rates of interest based on the one to three-month London Interbank Offered Rate (LIBOR) ( 0.54 percent on the swap maturing in August 2018, 0.86 percent on the swap maturing in March 2019, and 0.84 percent on the swaps maturing in August 2019 as of September 30, 2016 ) on the $300.0 million notional amount of indebtedness. The swaps are designated as cash flow hedges. The Company evaluates the effectiveness of the hedging relationships on an ongoing basis by recalculating changes in fair value of the derivatives and related hedged items independently. Unrealized gains or losses on cash flow hedges are recorded in other comprehensive income to the extent the cash flow hedges are effective. The amount of the swap that offsets the effects of interest rate changes on the related debt is subsequently reclassified into interest expense. Any ineffective portions on cash flow hedges are recorded in interest expense. No material ineffectiveness existed at either September 30, 2016 or 2015 . The fair value of the interest rate swap agreements is the estimated amount the Company would pay or receive to terminate the swap agreements. At September 30, 2016 , the swaps had a fair value of $4.9 million liability. The Company is exposed to credit-related losses in the event of nonperformance by counterparties to the swap agreements. This exposure is managed through diversification and monitoring of the creditworthiness of the counterparties. There was no potential loss that the Company would incur on the interest rate swaps if the counterparties were to fail to meet their obligations under the agreements at September 30, 2016 . Given the strong creditworthiness of the counterparties, management does not expect any of them to fail to meet their obligations. Additionally, the concentration of risk with any individual counterparty is not considered significant at September 30, 2016 . |
Pension and Postretirement Bene
Pension and Postretirement Benefit Plans | 3 Months Ended |
Sep. 30, 2016 | |
Defined Benefit Plans and Other Postretirement Benefit Plans Disclosures [Abstract] | |
Pension and Postretirement Benefit Plans | Pension and Postretirement Benefit Plans The following table presents the components of net periodic benefit costs: Three months ended September 30, 2016 2015 (In thousands) Pension benefits Service cost $ 3,137 $ 2,977 Interest cost 1,225 1,469 Expected return on plan assets (2,298 ) (2,746 ) Prior service cost amortization 48 49 Actuarial loss amortization 897 157 Net periodic benefit costs $ 3,009 $ 1,906 Postretirement benefits Service cost $ 23 $ 25 Interest cost 80 96 Prior service credit amortization (98 ) (107 ) Actuarial gain amortization (78 ) (169 ) Net periodic benefit credit $ (73 ) $ (155 ) The amortization of amounts related to unrecognized prior service costs and net actuarial gain/loss was reclassified out of other comprehensive income as components of net periodic benefit costs. |
Earnings per Share
Earnings per Share | 3 Months Ended |
Sep. 30, 2016 | |
Earnings Per Share [Abstract] | |
Earnings per Share | Earnings per Share The following table presents the calculations of earnings per share: Three months ended September 30, 2016 2015 (In thousands except per share data) Net earnings $ 33,973 $ 11,029 Basic average shares outstanding 44,558 44,612 Dilutive effect of stock options and equivalents 926 754 Diluted average shares outstanding 45,484 45,366 Earnings per share Basic earnings per share $ 0.76 $ 0.25 Diluted earnings per share 0.75 0.24 For the three months ended September 30, 2016 and 2015 , antidilutive options excluded from the above calculations totaled 0.5 million (with a weighted average exercise price of $54.11 ) and 1.2 million (with a weighted average exercise price of $49.47 ), respectively. |
Fair Value Measurements
Fair Value Measurements | 3 Months Ended |
Sep. 30, 2016 | |
Fair Value Disclosures [Abstract] | |
Fair Value Measurements | Fair Value Measurements We estimated the fair value of our financial instruments using available market information and valuation methodologies we believe to be appropriate for these purposes. Considerable judgment and a high degree of subjectivity are involved in developing these estimates and, accordingly, they are not necessarily indicative of amounts we would realize upon disposition. The fair value hierarchy consists of three broad levels of inputs that may be used to measure fair value, which are described below: • Level 1 Quoted prices (unadjusted) in active markets for identical assets or liabilities; • Level 2 Inputs other than quoted prices included within Level 1 that are either directly or indirectly observable ; • Level 3 Assets or liabilities for which fair value is based on valuation models with significant unobservable pricing inputs and which result in the use of management estimates. The following table sets forth the carrying value and the estimated fair value of the Company's financial instruments not measured at fair value on a recurring basis: September 30, 2016 June 30, 2016 (In thousands) Carrying Value Fair Value Carrying Value Fair Value Broadcast rights payable $ 21,787 $ 21,071 $ 10,173 $ 9,655 Total long-term debt 698,750 699,330 695,000 695,533 The fair value of broadcast rights payable was determined using the present value of expected future cash flows discounted at the Company's current borrowing rate with inputs included in Level 3. The fair value of total long-term debt was determined using the present value of expected future cash flows using borrowing rates currently available for debt with similar terms and maturities with inputs included in Level 2. The following table sets forth the assets and liabilities measured at fair value on a recurring basis: (In thousands) September 30, 2016 June 30, 2016 Property, plant, and equipment Corporate airplanes, held for sale $ 2,800 $ 2,800 Accrued expenses and other liabilities Interest rate swaps 2,059 2,768 Other noncurrent liabilities Contingent consideration 53,339 56,631 Interest rate swaps 2,794 4,511 The fair value of interest rate swaps is determined using discounted cash flows derived from market observable inputs including swap curves that are included in Level 2. The fair values of contingent consideration and corporate airplanes are based on significant inputs not observable in the market and thus represents Level 3 measurements. Details of changes in the fair value of Level 3 contingent consideration and corporate airplanes are as follows: Three months ended September 30, 2016 2015 (in thousands) Contingent consideration Balance at beginning of period $ 56,631 $ 61,535 Payments (4,000 ) — Change in present value of contingent consideration (1) 708 (1,000 ) Balance at end of period $ 53,339 $ 60,535 Corporate airplanes, held for sale Balance at beginning of period (2) $ 2,800 $ — Fair market adjustment of corporate airplanes — — Balance at end of period $ 2,800 $ — (1) Change in present value of contingent consideration is recorded in the selling, general, and administrative expense line on the Condensed Consolidated Statements of Earnings and is comprised of changes in estimated earn out payments based on projections of performance and the amortization of the present value discount. (2) Consistent with the decision to sell the corporate airplanes, these assets were adjusted to fair value in the fourth quarter of fiscal 2016. |
Financial Information about Ind
Financial Information about Industry Segments | 3 Months Ended |
Sep. 30, 2016 | |
Segment Reporting [Abstract] | |
Financial Information about Industry Segments | Financial Information about Industry Segments Meredith is a diversified media company focused primarily on the home and family marketplace. On the basis of products and services, the Company has established two reportable segments: national media and local media. There have been no changes in the basis of segmentation since June 30, 2016 . There have been no material intersegment transactions. There are two principal financial measures reported to the chief executive officer for use in assessing segment performance and allocating resources. Those measures are operating profit and earnings before interest, taxes, depreciation, and amortization (EBITDA). Operating profit for segment reporting, disclosed below, is revenues less operating costs excluding unallocated corporate expenses. Segment operating expenses include allocations of certain centrally incurred costs such as employee benefits, occupancy, information systems, accounting services, internal legal staff, and human resources administration. These costs are allocated based on actual usage or other appropriate methods, primarily number of employees. Unallocated corporate expenses are corporate overhead expenses not directly attributable to the operating groups. In accordance with authoritative guidance on disclosures about segments of an enterprise and related information, EBITDA is not presented below. The following table presents financial information by segment: Three months ended September 30, 2016 2015 (In thousands) Revenues National media $ 247,293 $ 258,199 Local media 152,586 126,467 Total revenues $ 399,879 $ 384,666 Segment profit National media $ 24,111 $ 22,803 Local media 50,622 29,327 Unallocated corporate (13,971 ) (23,118 ) Income from operations 60,762 29,012 Interest expense, net (4,749 ) (5,313 ) Earnings before income taxes $ 56,013 $ 23,699 Depreciation and amortization National media $ 4,518 $ 4,565 Local media 8,990 9,978 Unallocated corporate 388 537 Total depreciation and amortization $ 13,896 $ 15,080 |
Summary of Significant Accoun17
Summary of Significant Accounting Policies (Policies) | 3 Months Ended |
Sep. 30, 2016 | |
Accounting Policies [Abstract] | |
Basis of Presentation | The condensed consolidated financial statements include the accounts of Meredith Corporation and its wholly owned subsidiaries (Meredith or the Company), after eliminating all significant intercompany balances and transactions. Meredith does not have any off-balance sheet arrangements. The Company's use of special-purpose entities is limited to Meredith Funding Corporation, whose activities are fully consolidated in Meredith's condensed consolidated financial statements. |
Basis of Accounting | The accompanying unaudited condensed consolidated financial statements have been prepared pursuant to the rules and regulations of the United States Securities and Exchange Commission (SEC). Accordingly, they do not include all of the information and notes required by accounting principles generally accepted in the United States of America (GAAP) for complete financial statements. These condensed consolidated financial statements should be read in conjunction with the Company's audited consolidated financial statements, which are included in Meredith's Annual Report on Form 10‑K for the year ended June 30, 2016 , filed with the SEC. The condensed consolidated financial statements as of September 30, 2016 , and for the three months ended September 30, 2016 and 2015 , are unaudited but, in management's opinion, include all normal, recurring adjustments necessary for a fair presentation of the results of interim periods. The year-end condensed consolidated balance sheet data as of June 30, 2016 , were derived from audited financial statements, but do not include all disclosures required by GAAP. The results of operations for interim periods are not necessarily indicative of the results to be expected for the entire fiscal year. |
Adopted and Pending Accounting Pronouncements | In April 2015, the Financial Accounting Standards Board (FASB) issued guidance on the presentation of debt issuance costs. The new standard requires that debt issuance costs be recorded as a reduction from the face amount of the related debt rather than recorded as a deferred asset, with amortization recorded as interest expense, rather than recording as a deferred asset. The Company adopted this guidance in the first quarter of fiscal 2017, and it was retrospectively applied to the prior period, as required. Adoption changed the classification of debt issuance costs from other assets to current portion of long-term debt or long-term debt based on the classification of the related debt instrument. As a result, other assets and long-term debt each decreased by $1.5 million as of June 30, 2016, compared to amounts previously reported. Additionally, the format of the long-term debt disclosure was updated to include debt issuance costs separately. The adoption did not have an impact on our results of operations or cash flows. In April 2015, the FASB issued guidance on the presentation of cloud computing arrangements that include a software license. The new guidance requires capitalization of the software license fee as internal-use software if certain criteria are met, otherwise the costs are expensed as incurred. The standard was prospectively adopted by the Company in the first quarter of fiscal 2017. The adoption of the standard had no impact to the Company's consolidated financial statements. In June 2015, the FASB issued an accounting standards update that made technical corrections to the FASB Accounting Standards Codification. These technical corrections are divided into four categories: amendments related to differences between original guidance and the codification, guidance clarification and reference corrections, minor structural changes to simplify the codification, and minor improvements that are not expected to have a significant impact on current accounting practice. The amendments were effective for the Company in the first quarter of fiscal 2017. The adoption of the amendments had no impact to the Company's consolidated financial statements. Pending Accounting Pronouncements —In August 2016, the FASB issued an accounting standards update clarifying the classification of certain cash receipts and payments in the statement of cash flows. The update is intended to reduce the diversity in practice around how certain transactions are classified within the statement of cash flows. Retrospective adoption is required in our first quarter of fiscal 2019 with early adoption permitted, including adoption in an interim period. The Company is currently evaluating the impact that this update will have on its consolidated financial statements and the timing of adoption. |
Inventories (Tables)
Inventories (Tables) | 3 Months Ended |
Sep. 30, 2016 | |
Inventory Disclosure [Abstract] | |
Schedule of Inventory, Current | Major components of inventories are summarized below. Of total net inventory values shown, 51 percent are under the last-in first-out (LIFO) method at September 30, 2016 , and 54 percent at June 30, 2016 . (In thousands) September 30, 2016 June 30, Raw materials $ 8,643 $ 11,698 Work in process 14,517 10,107 Finished goods 1,732 1,834 24,892 23,639 Reserve for LIFO cost valuation (2,961 ) (2,961 ) Inventories $ 21,931 $ 20,678 |
Intangible Assets and Goodwill
Intangible Assets and Goodwill (Tables) | 3 Months Ended |
Sep. 30, 2016 | |
Goodwill and Intangible Assets Disclosure [Abstract] | |
Schedule of Finite-Lived Intangible Assets | Intangible assets consist of the following: September 30, 2016 June 30, 2016 (In thousands) Gross Accumulated Net Gross Accumulated Net Intangible assets subject to amortization National media Advertiser relationships $ 18,610 $ (11,985 ) $ 6,625 $ 18,610 $ (10,670 ) $ 7,940 Customer lists 3,080 (2,545 ) 535 5,230 (4,310 ) 920 Other 17,925 (7,727 ) 10,198 19,425 (8,685 ) 10,740 Local media Network affiliation agreements 229,309 (137,396 ) 91,913 229,309 (135,789 ) 93,520 Retransmission agreements 21,229 (7,877 ) 13,352 21,229 (6,993 ) 14,236 Other 1,023 (279 ) 744 1,214 (419 ) 795 Total $ 291,176 $ (167,809 ) 123,367 $ 295,017 $ (166,866 ) 128,151 Intangible assets not subject to amortization National media Internet domain names 7,827 7,827 Trademarks 153,215 153,215 Local media FCC licenses 624,684 624,684 Total 785,726 785,726 Intangible assets, net $ 909,093 $ 913,877 |
Schedule of Indefinite-Lived Intangible Assets | Intangible assets consist of the following: September 30, 2016 June 30, 2016 (In thousands) Gross Accumulated Net Gross Accumulated Net Intangible assets subject to amortization National media Advertiser relationships $ 18,610 $ (11,985 ) $ 6,625 $ 18,610 $ (10,670 ) $ 7,940 Customer lists 3,080 (2,545 ) 535 5,230 (4,310 ) 920 Other 17,925 (7,727 ) 10,198 19,425 (8,685 ) 10,740 Local media Network affiliation agreements 229,309 (137,396 ) 91,913 229,309 (135,789 ) 93,520 Retransmission agreements 21,229 (7,877 ) 13,352 21,229 (6,993 ) 14,236 Other 1,023 (279 ) 744 1,214 (419 ) 795 Total $ 291,176 $ (167,809 ) 123,367 $ 295,017 $ (166,866 ) 128,151 Intangible assets not subject to amortization National media Internet domain names 7,827 7,827 Trademarks 153,215 153,215 Local media FCC licenses 624,684 624,684 Total 785,726 785,726 Intangible assets, net $ 909,093 $ 913,877 |
Schedule of Goodwill | Changes in the carrying amount of goodwill were as follows: Three months ended September 30, 2016 2015 (In thousands) National Local Total National Local Total Balance at beginning of period Goodwill $ 931,303 $ 68,775 $ 1,000,078 $ 932,471 $ 68,775 $ 1,001,246 Accumulated impairment losses (116,949 ) — (116,949 ) — — — Total goodwill 814,354 68,775 883,129 932,471 68,775 1,001,246 Acquisition adjustments — — — (2,986 ) — (2,986 ) Balance at end of period Goodwill 931,303 68,775 1,000,078 929,485 68,775 998,260 Accumulated impairment losses (116,949 ) — (116,949 ) — — — Total goodwill $ 814,354 $ 68,775 $ 883,129 $ 929,485 $ 68,775 $ 998,260 |
Restructuring Accrual (Tables)
Restructuring Accrual (Tables) | 3 Months Ended |
Sep. 30, 2016 | |
Restructuring and Related Activities [Abstract] | |
Schedule of Restructuring and Related Costs | Details of changes in the Company's restructuring accrual are as follows: Three months ended September 30, 2016 2015 (In thousands) Balance at beginning of period $ 7,388 $ 15,731 Severance accruals — 3,366 Cash payments (2,267 ) (3,705 ) Reversal of excess accrual — (1,070 ) Balance at end of period $ 5,121 $ 14,322 |
Long-term Debt (Tables)
Long-term Debt (Tables) | 3 Months Ended |
Sep. 30, 2016 | |
Debt Disclosure [Abstract] | |
Schedule of Long-term Debt Instruments | Long-term debt consists of the following: (In thousands) September 30, 2016 June 30, Variable-rate credit facilities Asset-backed bank facility of $100 million, due 10/20/2017 $ 80,000 $ 80,000 Revolving credit facility of $200 million, due 3/27/2019 50,000 40,000 Term loan due 3/27/2019 218,750 225,000 Private placement notes 3.04% senior notes, due 3/1/2017 50,000 50,000 3.04% senior notes, due 3/1/2018 50,000 50,000 Floating rate senior notes, due 12/19/2022 100,000 100,000 Floating rate senior notes, due 2/28/2024 150,000 150,000 Total long-term debt 698,750 695,000 Unamortized debt issuance costs (1,348 ) (1,494 ) Current portion of long-term debt (75,000 ) (75,000 ) Long-term debt $ 622,402 $ 618,506 |
Pension and Postretirement Be22
Pension and Postretirement Benefit Plans (Tables) | 3 Months Ended |
Sep. 30, 2016 | |
Defined Benefit Plans and Other Postretirement Benefit Plans Disclosures [Abstract] | |
Schedule of Net Benefit Costs | The following table presents the components of net periodic benefit costs: Three months ended September 30, 2016 2015 (In thousands) Pension benefits Service cost $ 3,137 $ 2,977 Interest cost 1,225 1,469 Expected return on plan assets (2,298 ) (2,746 ) Prior service cost amortization 48 49 Actuarial loss amortization 897 157 Net periodic benefit costs $ 3,009 $ 1,906 Postretirement benefits Service cost $ 23 $ 25 Interest cost 80 96 Prior service credit amortization (98 ) (107 ) Actuarial gain amortization (78 ) (169 ) Net periodic benefit credit $ (73 ) $ (155 ) |
Earnings per Share (Tables)
Earnings per Share (Tables) | 3 Months Ended |
Sep. 30, 2016 | |
Earnings Per Share [Abstract] | |
Schedule of Earnings Per Share, Basic and Diluted | The following table presents the calculations of earnings per share: Three months ended September 30, 2016 2015 (In thousands except per share data) Net earnings $ 33,973 $ 11,029 Basic average shares outstanding 44,558 44,612 Dilutive effect of stock options and equivalents 926 754 Diluted average shares outstanding 45,484 45,366 Earnings per share Basic earnings per share $ 0.76 $ 0.25 Diluted earnings per share 0.75 0.24 |
Fair Value Measurements (Tables
Fair Value Measurements (Tables) | 3 Months Ended |
Sep. 30, 2016 | |
Fair Value Disclosures [Abstract] | |
Fair Value, by Balance Sheet Grouping | The following table sets forth the carrying value and the estimated fair value of the Company's financial instruments not measured at fair value on a recurring basis: September 30, 2016 June 30, 2016 (In thousands) Carrying Value Fair Value Carrying Value Fair Value Broadcast rights payable $ 21,787 $ 21,071 $ 10,173 $ 9,655 Total long-term debt 698,750 699,330 695,000 695,533 |
Schedule of Fair Value, Assets and Liabilities Measured on Recurring Basis | The following table sets forth the assets and liabilities measured at fair value on a recurring basis: (In thousands) September 30, 2016 June 30, 2016 Property, plant, and equipment Corporate airplanes, held for sale $ 2,800 $ 2,800 Accrued expenses and other liabilities Interest rate swaps 2,059 2,768 Other noncurrent liabilities Contingent consideration 53,339 56,631 Interest rate swaps 2,794 4,511 |
Changes in Fair Value of Level 3 Contingent Consideration and Corporate Airplanes | Details of changes in the fair value of Level 3 contingent consideration and corporate airplanes are as follows: Three months ended September 30, 2016 2015 (in thousands) Contingent consideration Balance at beginning of period $ 56,631 $ 61,535 Payments (4,000 ) — Change in present value of contingent consideration (1) 708 (1,000 ) Balance at end of period $ 53,339 $ 60,535 Corporate airplanes, held for sale Balance at beginning of period (2) $ 2,800 $ — Fair market adjustment of corporate airplanes — — Balance at end of period $ 2,800 $ — (1) Change in present value of contingent consideration is recorded in the selling, general, and administrative expense line on the Condensed Consolidated Statements of Earnings and is comprised of changes in estimated earn out payments based on projections of performance and the amortization of the present value discount. (2) Consistent with the decision to sell the corporate airplanes, these assets were adjusted to fair value in the fourth quarter of fiscal 2016. |
Financial Information about I25
Financial Information about Industry Segments (Tables) | 3 Months Ended |
Sep. 30, 2016 | |
Segment Reporting [Abstract] | |
Schedule of Segment Reporting Information, by Segment | The following table presents financial information by segment: Three months ended September 30, 2016 2015 (In thousands) Revenues National media $ 247,293 $ 258,199 Local media 152,586 126,467 Total revenues $ 399,879 $ 384,666 Segment profit National media $ 24,111 $ 22,803 Local media 50,622 29,327 Unallocated corporate (13,971 ) (23,118 ) Income from operations 60,762 29,012 Interest expense, net (4,749 ) (5,313 ) Earnings before income taxes $ 56,013 $ 23,699 Depreciation and amortization National media $ 4,518 $ 4,565 Local media 8,990 9,978 Unallocated corporate 388 537 Total depreciation and amortization $ 13,896 $ 15,080 |
Summary of Significant Accoun26
Summary of Significant Accounting Policies (Details) - USD ($) $ in Thousands | Sep. 30, 2016 | Jun. 30, 2016 |
New Accounting Pronouncements or Change in Accounting Principle [Line Items] | ||
Decrease in debt issuance costs | $ (1,348) | $ (1,494) |
Accounting Standards Update 2015-03 [Member] | Other Assets [Member] | ||
New Accounting Pronouncements or Change in Accounting Principle [Line Items] | ||
Decrease in debt issuance costs | 1,500 | |
Accounting Standards Update 2015-03 [Member] | Long-term Debt [Member] | ||
New Accounting Pronouncements or Change in Accounting Principle [Line Items] | ||
Decrease in debt issuance costs | $ 1,500 |
Inventories (Details)
Inventories (Details) - USD ($) $ in Thousands | Sep. 30, 2016 | Jun. 30, 2016 |
Inventory Disclosure [Abstract] | ||
Percentage of LIFO Inventory | 51.00% | 54.00% |
Raw materials | $ 8,643 | $ 11,698 |
Work in process | 14,517 | 10,107 |
Finished goods | 1,732 | 1,834 |
Subtotal | 24,892 | 23,639 |
Reserve for LIFO cost valuation | (2,961) | (2,961) |
Inventories | $ 21,931 | $ 20,678 |
Intangible Assets and Goodwil28
Intangible Assets and Goodwill - Intangible Assets (Details) - USD ($) $ in Thousands | 3 Months Ended | ||
Sep. 30, 2016 | Sep. 30, 2015 | Jun. 30, 2016 | |
Finite-Lived Intangible Assets [Line Items] | |||
Intangible assets subject to amortization, gross amount | $ 291,176 | $ 295,017 | |
Intangible assets subject to amortization, accumulated amortization | (167,809) | (166,866) | |
Intangible assets subject to amortization, net amount | 123,367 | 128,151 | |
Indefinite-lived Intangible Assets [Line Items] | |||
Intangible assets not subject to amortization | 785,726 | 785,726 | |
Intangible assets, net | 909,093 | 913,877 | |
Amortization expense | 4,784 | $ 4,784 | |
Future amortization expense for intangible assets [Abstract] | |||
Future amortization expense, fiscal 2017 | 18,000 | ||
Future amortization expense, fiscal 2018 | 15,000 | ||
Future amortization expense, fiscal 2019 | 12,500 | ||
Future amortization expense, fiscal 2020 | 11,600 | ||
Future amortization expense, fiscal 2021 | 7,600 | ||
Internet domain names [Member] | National media [Member] | |||
Indefinite-lived Intangible Assets [Line Items] | |||
Intangible assets not subject to amortization | 7,827 | 7,827 | |
Trademarks [Member] | National media [Member] | |||
Indefinite-lived Intangible Assets [Line Items] | |||
Intangible assets not subject to amortization | 153,215 | 153,215 | |
FCC licenses [Member] | Local media [Member] | |||
Indefinite-lived Intangible Assets [Line Items] | |||
Intangible assets not subject to amortization | 624,684 | 624,684 | |
Advertiser relationships [Member] | National media [Member] | |||
Finite-Lived Intangible Assets [Line Items] | |||
Intangible assets subject to amortization, gross amount | 18,610 | 18,610 | |
Intangible assets subject to amortization, accumulated amortization | (11,985) | (10,670) | |
Intangible assets subject to amortization, net amount | 6,625 | 7,940 | |
Customer lists [Member] | National media [Member] | |||
Finite-Lived Intangible Assets [Line Items] | |||
Intangible assets subject to amortization, gross amount | 3,080 | 5,230 | |
Intangible assets subject to amortization, accumulated amortization | (2,545) | (4,310) | |
Intangible assets subject to amortization, net amount | 535 | 920 | |
Other [Member] | National media [Member] | |||
Finite-Lived Intangible Assets [Line Items] | |||
Intangible assets subject to amortization, gross amount | 17,925 | 19,425 | |
Intangible assets subject to amortization, accumulated amortization | (7,727) | (8,685) | |
Intangible assets subject to amortization, net amount | 10,198 | 10,740 | |
Other [Member] | Local media [Member] | |||
Finite-Lived Intangible Assets [Line Items] | |||
Intangible assets subject to amortization, gross amount | 1,023 | 1,214 | |
Intangible assets subject to amortization, accumulated amortization | (279) | (419) | |
Intangible assets subject to amortization, net amount | 744 | 795 | |
Network affiliation agreements [Member] | Local media [Member] | |||
Finite-Lived Intangible Assets [Line Items] | |||
Intangible assets subject to amortization, gross amount | 229,309 | 229,309 | |
Intangible assets subject to amortization, accumulated amortization | (137,396) | (135,789) | |
Intangible assets subject to amortization, net amount | 91,913 | 93,520 | |
Retransmission agreements [Member] | Local media [Member] | |||
Finite-Lived Intangible Assets [Line Items] | |||
Intangible assets subject to amortization, gross amount | 21,229 | 21,229 | |
Intangible assets subject to amortization, accumulated amortization | (7,877) | (6,993) | |
Intangible assets subject to amortization, net amount | $ 13,352 | $ 14,236 |
Intangible Assets and Goodwil29
Intangible Assets and Goodwill - Goodwill (Details) - USD ($) $ in Thousands | 3 Months Ended | |
Sep. 30, 2016 | Sep. 30, 2015 | |
Goodwill [Roll Forward] | ||
Goodwill | $ 1,000,078 | $ 1,001,246 |
Accumulated impairment loss | (116,949) | 0 |
Total goodwill | 883,129 | 1,001,246 |
Acquisition adjustments | 0 | (2,986) |
Goodwill | 1,000,078 | 998,260 |
Accumulated impairment loss | (116,949) | 0 |
Total goodwill | 883,129 | 998,260 |
National media [Member] | ||
Goodwill [Roll Forward] | ||
Goodwill | 931,303 | 932,471 |
Accumulated impairment loss | (116,949) | 0 |
Total goodwill | 814,354 | 932,471 |
Acquisition adjustments | 0 | (2,986) |
Goodwill | 931,303 | 929,485 |
Accumulated impairment loss | (116,949) | 0 |
Total goodwill | 814,354 | 929,485 |
Local media [Member] | ||
Goodwill [Roll Forward] | ||
Goodwill | 68,775 | 68,775 |
Accumulated impairment loss | 0 | 0 |
Total goodwill | 68,775 | 68,775 |
Acquisition adjustments | 0 | 0 |
Goodwill | 68,775 | 68,775 |
Accumulated impairment loss | 0 | 0 |
Total goodwill | $ 68,775 | $ 68,775 |
Restructuring Accrual - Narrati
Restructuring Accrual - Narrative (Details) $ in Thousands | 3 Months Ended | |
Sep. 30, 2016USD ($) | Sep. 30, 2015USD ($)employee | |
Restructuring Cost and Reserve [Line Items] | ||
Expected number of employees affected | employee | 45 | |
Selling, general and administrative [Member] | ||
Restructuring Cost and Reserve [Line Items] | ||
Reversal of excess accrual | $ 0 | $ 1,070 |
Employee Severance [Member] | Selling, general and administrative [Member] | ||
Restructuring Cost and Reserve [Line Items] | ||
Severance and related benefit accruals | $ 0 | $ 3,366 |
Restructuring Accrual - Changes
Restructuring Accrual - Changes in Restructuring Accrual (Details) - USD ($) $ in Thousands | 3 Months Ended | |
Sep. 30, 2016 | Sep. 30, 2015 | |
Changes in restructuring accrual [Roll Forward] | ||
Balance at beginning of period | $ 7,388 | $ 15,731 |
Cash payments | (2,267) | (3,705) |
Balance at end of period | 5,121 | 14,322 |
Selling, general and administrative [Member] | ||
Changes in restructuring accrual [Roll Forward] | ||
Reversal of excess accrual | 0 | (1,070) |
Selling, general and administrative [Member] | Employee Severance [Member] | ||
Changes in restructuring accrual [Roll Forward] | ||
Severance accruals | $ 0 | $ 3,366 |
Long-term Debt (Details)
Long-term Debt (Details) - USD ($) | 3 Months Ended | |
Sep. 30, 2016 | Jun. 30, 2016 | |
Debt Instrument [Line Items] | ||
Total long-term debt | $ 698,750,000 | $ 695,000,000 |
Unamortized debt issuance costs | (1,348,000) | (1,494,000) |
Current portion of long-term debt | (75,000,000) | (75,000,000) |
Long-term debt | $ 622,402,000 | 618,506,000 |
Subordinated note receivable, interest rate | 3.50% | |
Line of Credit [Member] | Asset Backed Bank Facility [Member] | ||
Debt Instrument [Line Items] | ||
Total long-term debt | $ 80,000,000 | 80,000,000 |
Line of credit facility, maximum borrowing capacity | 100,000,000 | 100,000,000 |
Accounts receivable outstanding under the revolving agreement | 169,100,000 | |
Line of Credit [Member] | Revolving Credit Facility [Member] | ||
Debt Instrument [Line Items] | ||
Total long-term debt | 50,000,000 | 40,000,000 |
Line of credit facility, maximum borrowing capacity | 200,000,000 | 200,000,000 |
Term Loan Facility [Member] | Term Loan Facility [Member] | ||
Debt Instrument [Line Items] | ||
Total long-term debt | 218,750,000 | 225,000,000 |
Senior Notes [Member] | Senior Notes 3.04% due 2017 [Member] | ||
Debt Instrument [Line Items] | ||
Total long-term debt | $ 50,000,000 | $ 50,000,000 |
Debt instrument, stated interest rate | 3.04% | 3.04% |
Senior Notes [Member] | Senior Notes 3.04% due 2018 [Member] | ||
Debt Instrument [Line Items] | ||
Total long-term debt | $ 50,000,000 | $ 50,000,000 |
Debt instrument, stated interest rate | 3.04% | 3.04% |
Senior Notes [Member] | Senior Notes Due 2022 [Member] | ||
Debt Instrument [Line Items] | ||
Total long-term debt | $ 100,000,000 | $ 100,000,000 |
Senior Notes [Member] | Senior Notes Due 2024 [Member] | ||
Debt Instrument [Line Items] | ||
Total long-term debt | $ 150,000,000 | $ 150,000,000 |
Long-term Debt - Derivative (De
Long-term Debt - Derivative (Details) - Cash Flow Hedging [Member] | 3 Months Ended |
Sep. 30, 2016USD ($) | |
Interest Rate Swap [Member] | |
Derivative [Line Items] | |
Notional amount of derivative | $ 300,000,000 |
Fair value of interest rate swaps | 4,900,000 |
Maximum loss on counterparties failure to meet obligations | 0 |
Interest Rate Swap Expiring August 2018 [Member] | |
Derivative [Line Items] | |
Derivative, amount of hedged items | $ 50,000,000 |
Fixed interest rate of derivative | 1.36% |
Variable interest rate of derivative | 0.54% |
Interest Rate Swap Expiring March 2019 [Member] | |
Derivative [Line Items] | |
Derivative, amount of hedged items | $ 100,000,000 |
Fixed interest rate of derivative | 1.53% |
Variable interest rate of derivative | 0.86% |
Interest Rate Swaps Expiring August 2019 [Member] | |
Derivative [Line Items] | |
Derivative, amount of hedged items | $ 150,000,000 |
Fixed interest rate of derivative | 1.76% |
Variable interest rate of derivative | 0.84% |
Senior Notes Due 2024 [Member] | Interest Rate Swap [Member] | |
Derivative [Line Items] | |
Derivative, amount of hedged items | $ 250,000,000 |
Term Loan Facility [Member] | Interest Rate Swap [Member] | |
Derivative [Line Items] | |
Derivative, amount of hedged items | $ 50,000,000 |
Pension and Postretirement Be34
Pension and Postretirement Benefit Plans (Details) - USD ($) $ in Thousands | 3 Months Ended | |
Sep. 30, 2016 | Sep. 30, 2015 | |
Pension Plans [Member] | ||
Components of Net Periodic Benefit Costs [Abstract] | ||
Service cost | $ 3,137 | $ 2,977 |
Interest cost | 1,225 | 1,469 |
Expected return on plan assets | (2,298) | (2,746) |
Prior service cost (credit) amortization | 48 | 49 |
Actuarial loss (gain) amortization | 897 | 157 |
Net periodic benefit credit | 3,009 | 1,906 |
Postretirement Benefit Plans [Member] | ||
Components of Net Periodic Benefit Costs [Abstract] | ||
Service cost | 23 | 25 |
Interest cost | 80 | 96 |
Prior service cost (credit) amortization | (98) | (107) |
Actuarial loss (gain) amortization | (78) | (169) |
Net periodic benefit credit | $ (73) | $ (155) |
Earnings per Share (Details)
Earnings per Share (Details) - USD ($) $ / shares in Units, shares in Thousands, $ in Thousands | 3 Months Ended | |
Sep. 30, 2016 | Sep. 30, 2015 | |
Earnings Per Share [Abstract] | ||
Net earnings | $ 33,973 | $ 11,029 |
Basic average shares outstanding (in shares) | 44,558 | 44,612 |
Dilutive effect of stock options and equivalents (in shares) | 926 | 754 |
Diluted average shares outstanding (in shares) | 45,484 | 45,366 |
Earnings per share | ||
Basic earnings per share (in usd per share) | $ 0.76 | $ 0.25 |
Diluted earnings per share (in usd per share) | $ 0.75 | $ 0.24 |
Employee Stock Option [Member] | ||
Antidilutive Securities Excluded from Computation of Earnings Per Share [Line Items] | ||
Antidilutive options excluded from calculation of earnings per share, number of options | 500 | 1,200 |
Antidilutive options excluded from calculation of earnings per share, weighted average exercise price (in usd per share) | $ 54.11 | $ 49.47 |
Fair Value Measurements - Carry
Fair Value Measurements - Carrying Value and Estimated Fair Value of Financial Instruments (Details) - USD ($) $ in Thousands | Sep. 30, 2016 | Jun. 30, 2016 |
Carrying Value [Member] | ||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ||
Broadcast rights payable | $ 21,787 | $ 10,173 |
Total long-term debt | 698,750 | 695,000 |
Fair Value [Member] | ||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ||
Broadcast rights payable | 21,071 | 9,655 |
Total long-term debt | $ 699,330 | $ 695,533 |
Fair Value Measurements - Recur
Fair Value Measurements - Recurring Basis (Details) - Measured at fair value on recurring basis [Member] - USD ($) $ in Thousands | Sep. 30, 2016 | Jun. 30, 2016 |
Property, Plant and Equipment [Member] | Level 3 [Member] | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Corporate airplanes, held for sale | $ 2,800 | $ 2,800 |
Accrued expenses and other liabilities [Member] | Level 2 [Member] | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Interest rate swaps | 2,059 | 2,768 |
Other noncurrent liabilities [Member] | Level 2 [Member] | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Interest rate swaps | 2,794 | 4,511 |
Other noncurrent liabilities [Member] | Level 3 [Member] | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Contingent consideration | $ 53,339 | $ 56,631 |
Fair Value Measurements - Chang
Fair Value Measurements - Changes in Fair Value of Level 3 Contingent Consideration (Details) - USD ($) $ in Thousands | 3 Months Ended | |
Sep. 30, 2016 | Sep. 30, 2015 | |
Corporate airplanes [Member] | ||
Corporate airplanes [Roll Forward] | ||
Balance at beginning of period | $ 2,800 | $ 0 |
Fair market adjustment of corporate airplanes | 0 | 0 |
Balance at end of period | 2,800 | 0 |
Contingent Consideration [Member] | ||
Contingent consideration [Roll Forward] | ||
Balance at beginning of period | 56,631 | 61,535 |
Payments | (4,000) | 0 |
Change in present value of contingent consideration | 708 | (1,000) |
Balance at end of period | $ 53,339 | $ 60,535 |
Financial Information about I39
Financial Information about Industry Segments (Details) $ in Thousands | 3 Months Ended | |
Sep. 30, 2016USD ($)measuresegment | Sep. 30, 2015USD ($) | |
Segment Reporting Information [Line Items] | ||
Number of reportable segments | segment | 2 | |
Number of principal financial measures | measure | 2 | |
Total revenues | $ 399,879 | $ 384,666 |
Income from operations | 60,762 | 29,012 |
Interest expense, net | (4,749) | (5,313) |
Earnings before income taxes | 56,013 | 23,699 |
Depreciation and amortization | 13,896 | 15,080 |
National media [Member] | ||
Segment Reporting Information [Line Items] | ||
Total revenues | 247,293 | 258,199 |
Income from operations | 24,111 | 22,803 |
Depreciation and amortization | 4,518 | 4,565 |
Local media [Member] | ||
Segment Reporting Information [Line Items] | ||
Total revenues | 152,586 | 126,467 |
Income from operations | 50,622 | 29,327 |
Depreciation and amortization | 8,990 | 9,978 |
Unallocated corporate [Member] | ||
Segment Reporting Information [Line Items] | ||
Income from operations | (13,971) | (23,118) |
Depreciation and amortization | $ 388 | $ 537 |