Document and Entity Information
Document and Entity Information | 3 Months Ended |
Sep. 30, 2017shares | |
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, 2017 |
Amendment Flag | false |
Document Fiscal Year Focus | 2,018 |
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 | 39,557,003 |
Class B Shares [Member] | |
Document Information [Line Items] | |
Entity Common Stock, Shares Outstanding | 5,119,107 |
Condensed Consolidated Balance
Condensed Consolidated Balance Sheets - USD ($) $ in Thousands | Sep. 30, 2017 | Jun. 30, 2017 |
Current assets | ||
Cash and cash equivalents | $ 27,811 | $ 22,287 |
Accounts receivable, net | 286,723 | 289,052 |
Inventories | 23,263 | 21,890 |
Current portion of subscription acquisition costs | 150,318 | 144,896 |
Current portion of broadcast rights | 19,301 | 7,853 |
Other current assets | 28,307 | 19,275 |
Total current assets | 535,723 | 505,253 |
Property, plant, and equipment | 547,370 | 549,536 |
Less accumulated depreciation | (346,775) | (359,670) |
Net property, plant, and equipment | 200,595 | 189,866 |
Subscription acquisition costs | 78,883 | 79,740 |
Broadcast rights | 22,990 | 21,807 |
Other assets | 72,503 | 69,616 |
Intangible assets, net | 951,111 | 955,883 |
Goodwill | 907,558 | 907,458 |
Total assets | 2,769,363 | 2,729,623 |
Current liabilities | ||
Current portion of long-term debt | 62,500 | 62,500 |
Current portion of long-term broadcast rights payable | 19,773 | 9,206 |
Accounts payable | 76,726 | 66,598 |
Accrued expenses and other liabilities | 123,525 | 116,907 |
Current portion of unearned subscription revenues | 212,240 | 204,459 |
Total current liabilities | 494,764 | 459,670 |
Long-term debt | 642,759 | 635,737 |
Long-term broadcast rights payable | 23,894 | 22,454 |
Unearned subscription revenues | 105,295 | 106,506 |
Deferred income taxes | 397,386 | 384,726 |
Other noncurrent liabilities | 97,504 | 124,558 |
Total liabilities | 1,761,602 | 1,733,651 |
Shareholders' equity | ||
Additional paid-in capital | 56,631 | 54,726 |
Retained earnings | 924,880 | 915,703 |
Accumulated other comprehensive loss | (18,426) | (19,009) |
Total shareholders' equity | 1,007,761 | 995,972 |
Total liabilities and shareholders' equity | 2,769,363 | 2,729,623 |
Series Preferred Stock [Member] | ||
Shareholders' equity | ||
Series preferred stock | 0 | 0 |
Common Stock [Member] | ||
Shareholders' equity | ||
Common stock | 39,557 | 39,433 |
Common Class B [Member] | ||
Shareholders' equity | ||
Common stock | $ 5,119 | $ 5,119 |
Condensed Consolidated Statemen
Condensed Consolidated Statements of Earnings - USD ($) shares in Thousands, $ in Thousands | 3 Months Ended | |
Sep. 30, 2017 | Sep. 30, 2016 | |
Revenues | ||
Advertising | $ 209,249 | $ 225,889 |
Circulation | 68,927 | 68,668 |
All other | 114,595 | 105,322 |
Total revenues | 392,771 | 399,879 |
Operating expenses | ||
Production, distribution, and editorial | 155,802 | 150,228 |
Selling, general, and administrative | 167,621 | 174,993 |
Depreciation and amortization | 12,550 | 13,896 |
Total operating expenses | 335,973 | 339,117 |
Income from operations | 56,798 | 60,762 |
Interest expense, net | (5,078) | (4,749) |
Earnings before income taxes | 51,720 | 56,013 |
Income taxes | (18,279) | (22,040) |
Net earnings | $ 33,441 | $ 33,973 |
Basic earnings per share (in usd per share) | $ 0.75 | $ 0.76 |
Basic average shares outstanding (in shares) | 44,779 | 44,558 |
Diluted earnings per share (in usd per share) | $ 0.73 | $ 0.75 |
Diluted average shares outstanding (in shares) | 45,620 | 45,484 |
Dividends paid per share (in usd per share) | $ 0.520 | $ 0.495 |
Condensed Consolidated Stateme4
Condensed Consolidated Statements of Comprehensive Income - USD ($) $ in Thousands | 3 Months Ended | |
Sep. 30, 2017 | Sep. 30, 2016 | |
Comprehensive income | ||
Net earnings | $ 33,441 | $ 33,973 |
Other comprehensive income, net of income taxes | ||
Pension and other postretirement benefit plans activity | 327 | 537 |
Unrealized gains on interest rate swaps | 256 | 1,469 |
Other comprehensive income, net of income taxes | 583 | 2,006 |
Comprehensive income | $ 34,024 | $ 35,979 |
Condensed Consolidated Stateme5
Condensed Consolidated Statement of Shareholders' Equity - 3 months ended Sep. 30, 2017 - 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, 2017 | $ 995,972 | $ 39,433 | $ 5,119 | $ 54,726 | $ 915,703 | $ (19,009) | ||||
Increase (Decrease) in Stockholders' Equity [Roll Forward] | ||||||||||
Net earnings | 33,441 | 33,441 | ||||||||
Other comprehensive income, net of income taxes | 583 | 583 | ||||||||
Shares issued under incentive plans, net of forfeitures | 11,998 | 423 | 11,575 | |||||||
Purchases of Company stock | (17,693) | (299) | (17,394) | |||||||
Share-based compensation | 6,682 | 6,682 | ||||||||
Dividends paid | $ (20,960) | $ (2,662) | $ (20,960) | $ (2,662) | ||||||
Ending balance at Sep. 30, 2017 | 1,007,761 | $ 39,557 | $ 5,119 | 56,631 | $ 924,880 | $ (18,426) | ||||
Increase (Decrease) in Stockholders' Equity [Roll Forward] | ||||||||||
Cumulative effect adjustment for adoption of Accounting Standards Update 2016-09 | $ 400 | $ 1,042 | $ (642) |
Condensed Consolidated Stateme6
Condensed Consolidated Statement of Shareholders' Equity (Parenthetical) - Common Stock [Member] - $ / shares | Sep. 30, 2017 | Jun. 30, 2017 |
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, 2017 | Sep. 30, 2016 | |
Cash flows from operating activities | ||
Net earnings | $ 33,441 | $ 33,973 |
Adjustments to reconcile net earnings to net cash provided by operating activities | ||
Depreciation | 7,878 | 9,112 |
Amortization | 4,672 | 4,784 |
Share-based compensation | 6,682 | 6,358 |
Deferred income taxes | 12,697 | 8,700 |
Amortization of broadcast rights | 4,871 | 4,249 |
Payments for broadcast rights | (5,495) | (4,042) |
Gain on disposition of assets | (3,282) | 0 |
Fair value adjustments to contingent consideration | (258) | 708 |
Excess tax benefits from share-based payments | 0 | (2,071) |
Changes in assets and liabilities | (9,820) | (26,411) |
Net cash provided by operating activities | 51,386 | 35,360 |
Cash flows from investing activities | ||
Acquisitions of and investments in businesses | (1,000) | 0 |
Additions to property, plant, and equipment | (20,613) | (2,232) |
Proceeds from disposition of assets, net of cash sold | 2,193 | 0 |
Net cash used in investing activities | (19,420) | (2,232) |
Cash flows from financing activities | ||
Proceeds from issuance of long-term debt | 20,000 | 20,000 |
Repayments of long-term debt | (13,125) | (16,250) |
Dividends paid | (23,622) | (22,432) |
Purchases of Company stock | (17,693) | (18,378) |
Proceeds from common stock issued | 11,998 | 13,019 |
Payment of acquisition-related contingent consideration | (4,000) | (4,000) |
Excess tax benefits from share-based payments | 0 | 2,071 |
Net cash used in financing activities | (26,442) | (25,970) |
Net increase in cash and cash equivalents | 5,524 | 7,158 |
Cash and cash equivalents, at beginning of period | 22,287 | 24,970 |
Cash and cash equivalents, at end of period | $ 27,811 | $ 32,128 |
Summary of Significant Accounti
Summary of Significant Accounting Policies | 3 Months Ended |
Sep. 30, 2017 | |
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, 2017 , filed with the SEC. The condensed consolidated financial statements as of September 30, 2017 , and for the three months ended September 30, 2017 and 2016 , 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, 2017 , 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 — ASU 2016-07—In March 2016, the Financial Accounting Standards Board (FASB) issued an Accounting Standards Update (ASU) simplifying the transition to the equity method of accounting. The new guidance eliminates the requirement to apply the equity method of accounting retrospectively when a reporting entity obtains significant influence over a previously held investment. The Company adopted this standard effective July 1, 2017. The adoption of this guidance did not have an impact on our results of operations, cash flows, or disclosures. ASU 2016-09—In March 2016, as a part of its simplification initiative, the FASB issued guidance on the accounting for employee share-based payments. The new guidance is intended to simplify several aspects of the accounting for share-based payment transactions, including the income tax treatment, classification of awards as either equity or liabilities, and classification on the statement of cash flows. The Company adopted this standard effective July 1, 2017. The adoption of this guidance resulted in the prospective recognition of realized excess tax benefits related to the exercise or vesting of share-based awards in our Condensed Consolidated Statements of Earnings instead of in additional paid-in capital within our Condensed Consolidated Balance Sheets. We recognized an excess tax benefit of $2.1 million as a credit to income tax expense in our Condensed Consolidated Statements of Earnings for the quarter ended September 30, 2017. Using a modified retrospective application, the Company has elected to recognize forfeitures as they occur and recorded a $1.0 million increase to additional paid-in capital, a $0.6 million reduction to retained earnings, and a $0.4 million reduction to deferred taxes to reflect the incremental share-based compensation expense, net of the related tax impacts, that would have been recognized in prior years under the modified guidance. Presentation requirements for cash flows related to employee taxes paid using withheld shares had no impact to all periods presented as such cash flows have historically been presented as financing activities. We no longer classify excess tax benefits related to share-based awards as a financing cash inflow and an operating cash outflow. This classification requirement was adopted prospectively and, as such, our Condensed Consolidated Statement of Cash Flows has not been retrospectively adjusted. Pending Accounting Pronouncements — ASU 2017-12—In August 2017, the FASB issued guidance amending hedge accounting requirements. The purpose of this guidance is to better align a company's risk management activities and financial reporting requirements, and to simplify the application of hedge accounting. The effective date is the first quarter of fiscal 2020, with early adoption permitted. The Company does not expect the adoption of this guidance to have a material impact on our results of operations, cash flows, or disclosures. ASU 2014-09—In May 2014, the FASB issued an accounting standards update that replaces existing revenue recognition guidance. The new guidance requires a company to recognize revenue for the transfer of promised goods or services equal to the amount it expects to receive in exchange for those goods or services. The guidance includes a five-step framework to determine the timing and amount of revenue to recognize related to contracts with customers. Additionally, the guidance requires new and significantly enhanced disclosures about the nature, amount, timing, and uncertainty of revenue and cash flows from customer contracts as well as judgments made by a company when following the framework. The FASB continues to issue amendments to further clarify provisions of this guidance. These amendments will be effective upon adoption of the standard. The Company will adopt the standard beginning July 1, 2018 (fiscal 2019). The two permitted transition methods are the full retrospective method, in which case the standard would be applied to each prior reporting period presented and the cumulative effect of applying the standard would be recognized in the earliest period shown; or the modified retrospective method, in which case the cumulative effect of applying the standard would be recognized at the date of initial application. While a final decision has not been made, we currently anticipate adopting the standard using the modified retrospective method. We are in the process of documenting the impact of the guidance on our current accounting policies and practices to identify material differences, if any, that would result from applying the new requirements to our revenue contracts. We continue to make progress on our revenue recognition analyses and are currently evaluating the impact, if any, on changes to our business processes, systems, and controls to support recognition and disclosure requirements under the new guidance. As these analyses are completed, the Company will be better able to quantify the anticipated impact, if any, to our consolidated financial statements. |
Acquisitions and Dispositions
Acquisitions and Dispositions | 3 Months Ended |
Sep. 30, 2017 | |
Business Combinations [Abstract] | |
Acquisitions and Dispositions | Acquisitions and Dispositions On December 7, 2016, Meredith acquired the assets of a digital lead-generation company in the home services market, which has been rebranded Meredith Performance Marketing by the Company. During the first quarter of fiscal 2018, the provisional amount of goodwill was increased by $0.1 million , with a corresponding decrease to intangible assets. On April 21, 2017, Meredith acquired WPCH-TV, an independent television station in Atlanta, Georgia, which was operated by Meredith prior to its acquisition. Effective July 1, 2017, Meredith's national media group sold a 70 percent interest in Charleston Tennis LLC, which operates the Family Circle Tennis Center, to an unrelated third party. In return, Meredith received $0.6 million in cash and a note receivable for $8.5 million . The note receivable is due in annual installments over a period of 8 years . At September 30, 2017, there was $3.8 million in unamortized discount and an allowance of $2.7 million recorded against the note. This transaction generated a gain of $3.3 million , which was recorded in the selling, general, and administrative line of the Condensed Consolidated Statements of Earnings. Of this gain, $1.0 million related to the remeasurement of the retained investment. As Meredith retains a 30 percent interest, has a seat on the board, and has approval rights over certain limited matters, Meredith will now account for this investment under the equity method of accounting. |
Inventories
Inventories | 3 Months Ended |
Sep. 30, 2017 | |
Inventory Disclosure [Abstract] | |
Inventories | Inventories Major components of inventories are summarized below. Of total net inventory values shown, 61 percent are under the last-in first-out (LIFO) method at September 30, 2017 , and 65 percent at June 30, 2017 . (In thousands) September 30, 2017 June 30, Raw materials $ 12,553 $ 13,404 Work in process 10,841 8,665 Finished goods 1,159 1,111 24,553 23,180 Reserve for LIFO cost valuation (1,290 ) (1,290 ) Inventories $ 23,263 $ 21,890 |
Intangible Assets and Goodwill
Intangible Assets and Goodwill | 3 Months Ended |
Sep. 30, 2017 | |
Goodwill and Intangible Assets Disclosure [Abstract] | |
Intangible Assets and Goodwill | Intangible Assets and Goodwill Intangible assets consist of the following: September 30, 2017 June 30, 2017 (In thousands) Gross Accumulated Net Gross Accumulated Net Intangible assets subject to amortization National media Advertiser relationships $ 13,810 $ (11,817 ) $ 1,993 $ 18,610 $ (15,514 ) $ 3,096 Customer lists 4,200 (420 ) 3,780 7,280 (3,395 ) 3,885 Other 21,325 (9,662 ) 11,663 22,325 (9,850 ) 12,475 Local media Network affiliation agreements 229,309 (143,823 ) 85,486 229,309 (142,216 ) 87,093 Retransmission agreements 27,923 (11,754 ) 16,169 27,923 (10,700 ) 17,223 Other 1,670 (553 ) 1,117 1,680 (472 ) 1,208 Total $ 298,237 $ (178,029 ) 120,208 $ 307,127 $ (182,147 ) 124,980 Intangible assets not subject to amortization National media Internet domain names 7,827 7,827 Trademarks 147,915 147,915 Local media FCC licenses 675,161 675,161 Total 830,903 830,903 Intangible assets, net $ 951,111 $ 955,883 Amortization expense was $4.7 million and $4.8 million for the three months ended September 30, 2017 and 2016 , respectively. Annual amortization expense for intangible assets is expected to be as follows: $17.1 million in fiscal 2018 , $14.6 million in fiscal 2019 , $13.7 million in fiscal 2020 , $9.7 million in fiscal 2021 , and $7.3 million in fiscal 2022 . Changes in the carrying amount of goodwill were as follows: Three months ended September 30, 2017 2016 (In thousands) National Local Total National Local Total Balance at beginning of period Goodwill $ 943,803 $ 80,604 $ 1,024,407 $ 931,303 $ 68,775 $ 1,000,078 Accumulated impairment losses (116,949 ) — (116,949 ) (116,949 ) — (116,949 ) Total goodwill 826,854 80,604 907,458 814,354 68,775 883,129 Activity during the period Acquisition adjustments 100 — 100 — — — Balance at end of period Goodwill 943,903 80,604 1,024,507 931,303 68,775 1,000,078 Accumulated impairment losses (116,949 ) — (116,949 ) (116,949 ) — (116,949 ) Total goodwill $ 826,954 $ 80,604 $ 907,558 $ 814,354 $ 68,775 $ 883,129 |
Restructuring Accrual
Restructuring Accrual | 3 Months Ended |
Sep. 30, 2017 | |
Restructuring and Related Activities [Abstract] | |
Restructuring Accrual | Restructuring Accrual Details of changes in the Company's restructuring accrual are as follows: Three months ended September 30, 2017 2016 (In thousands) Balance at beginning of period $ 8,674 $ 7,388 Cash payments (2,953 ) (2,267 ) Balance at end of period $ 5,721 $ 5,121 |
Long-term Debt
Long-term Debt | 3 Months Ended |
Sep. 30, 2017 | |
Debt Disclosure [Abstract] | |
Long-term Debt | Long-term Debt Long-term debt consists of the following: (In thousands) September 30, 2017 June 30, Variable-rate credit facilities Asset-backed bank facility of $100 million, due 10/18/2019 $ 75,000 $ 75,000 Revolving credit facility of $200 million, due 11/30/2021 95,000 85,000 Term loan due 11/30/2021 237,500 240,625 Private placement notes 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 707,500 700,625 Unamortized debt issuance costs (2,241 ) (2,388 ) Current portion of long-term debt (62,500 ) (62,500 ) Long-term debt $ 642,759 $ 635,737 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, 2017 , $174.0 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 of 4.25 percent at September 30, 2017 , 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. In October 2017, we renewed our asset-backed bank facility for an additional two-year period on terms substantially similar to those previously in place. The renewed facility will expire in October 2019. 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 ( 1.24 percent on the swap maturing in August 2018, 1.33 percent on the swap maturing in March 2019, and 1.32 percent on the swaps maturing in August 2019 as of September 30, 2017 ) 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, 2017 or 2016 . 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, 2017 , the swaps were in a net liability position. The Company is exposed to credit-related losses in the event of nonperformance by counterparties to the swap agreements. The Company strives to manage this exposure through diversification and monitoring of the creditworthiness of the counterparties. There was $0.3 million of 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, 2017 . 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, 2017 . |
Pension and Postretirement Bene
Pension and Postretirement Benefit Plans | 3 Months Ended |
Sep. 30, 2017 | |
Retirement Benefits [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, 2017 2016 (In thousands) Pension benefits Service cost $ 3,251 $ 3,137 Interest cost 1,470 1,225 Expected return on plan assets (2,616 ) (2,298 ) Prior service cost amortization 72 48 Actuarial loss amortization 513 897 Net periodic benefit costs $ 2,690 $ 3,009 Postretirement benefits Service cost $ 19 $ 23 Interest cost 82 80 Prior service credit amortization (85 ) (98 ) Actuarial gain amortization (81 ) (78 ) Net periodic benefit credit $ (65 ) $ (73 ) 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, 2017 | |
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, 2017 2016 (In thousands except per share data) Net earnings $ 33,441 $ 33,973 Basic average shares outstanding 44,779 44,558 Dilutive effect of stock options and equivalents 841 926 Diluted average shares outstanding 45,620 45,484 Earnings per share Basic earnings per share $ 0.75 $ 0.76 Diluted earnings per share 0.73 0.75 For the three months ended September 30, 2017 and 2016 , antidilutive options excluded from the above calculations totaled 0.5 million (with a weighted average exercise price of $56.14 ) and 0.5 million (with a weighted average exercise price of $54.11 ), respectively. In the three months ended September 30, 2017 and 2016 , options were exercised to purchase 0.3 million and 0.3 million common shares, respectively. |
Fair Value Measurements
Fair Value Measurements | 3 Months Ended |
Sep. 30, 2017 | |
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, 2017 June 30, 2017 (In thousands) Carrying Value Fair Value Carrying Value Fair Value Broadcast rights payable $ 43,667 $ 42,013 $ 31,660 $ 30,544 Total long-term debt 707,500 707,570 700,625 700,714 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, 2017 June 30, 2017 Property, plant, and equipment Corporate airplanes, held for sale $ — $ 1,927 Other assets Interest rate swaps 293 158 Accrued expenses and other liabilities Contingent consideration 25,906 4,000 Interest rate swaps 297 602 Other noncurrent liabilities Contingent consideration 4,047 30,211 The fair value of interest rate swaps was 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 are significant unobservable inputs and thus represent Level 3 measurements. The key inputs used to determine the fair value of contingent consideration included projected financial performance of acquisitions and a probability-weighted discounted cash flow model. Estimated financial performance is based upon internally developed estimates based on industry knowledge and historical performance. The corporate airplanes fair value was also based on significant inputs not observable in the market and thus represents a Level 3 measurement. Details of changes in the fair value of Level 3 contingent consideration and corporate airplanes are as follows: Three months ended September 30, 2017 2016 (in thousands) Contingent consideration Balance at beginning of period $ 34,211 $ 56,631 Payments (4,000 ) (4,000 ) Change in present value of contingent consideration (1) (258 ) 708 Balance at end of period $ 29,953 $ 53,339 Corporate airplanes, held for sale Balance at beginning of period $ 1,927 $ 2,800 Sale of corporate airplanes (1,927 ) — 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 accretion of the present value discount. |
Financial Information about Ind
Financial Information about Industry Segments | 3 Months Ended |
Sep. 30, 2017 | |
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, 2017 . There have been no material intersegment transactions. There are two principal financial measures reported to the chief executive officer (the chief operating decision maker) 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, 2017 2016 (In thousands) Revenues National media $ 238,960 $ 247,293 Local media 153,811 152,586 Total revenues $ 392,771 $ 399,879 Segment profit National media $ 28,256 $ 24,111 Local media 40,942 50,622 Unallocated corporate (12,400 ) (13,971 ) Income from operations 56,798 60,762 Interest expense, net (5,078 ) (4,749 ) Earnings before income taxes $ 51,720 $ 56,013 Depreciation and amortization National media $ 3,987 $ 4,518 Local media 7,938 8,990 Unallocated corporate 625 388 Total depreciation and amortization $ 12,550 $ 13,896 |
Summary of Significant Accoun18
Summary of Significant Accounting Policies (Policies) | 3 Months Ended |
Sep. 30, 2017 | |
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, 2017 , filed with the SEC. The condensed consolidated financial statements as of September 30, 2017 , and for the three months ended September 30, 2017 and 2016 , 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, 2017 , 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 | Adopted Accounting Pronouncements — ASU 2016-07—In March 2016, the Financial Accounting Standards Board (FASB) issued an Accounting Standards Update (ASU) simplifying the transition to the equity method of accounting. The new guidance eliminates the requirement to apply the equity method of accounting retrospectively when a reporting entity obtains significant influence over a previously held investment. The Company adopted this standard effective July 1, 2017. The adoption of this guidance did not have an impact on our results of operations, cash flows, or disclosures. ASU 2016-09—In March 2016, as a part of its simplification initiative, the FASB issued guidance on the accounting for employee share-based payments. The new guidance is intended to simplify several aspects of the accounting for share-based payment transactions, including the income tax treatment, classification of awards as either equity or liabilities, and classification on the statement of cash flows. The Company adopted this standard effective July 1, 2017. The adoption of this guidance resulted in the prospective recognition of realized excess tax benefits related to the exercise or vesting of share-based awards in our Condensed Consolidated Statements of Earnings instead of in additional paid-in capital within our Condensed Consolidated Balance Sheets. We recognized an excess tax benefit of $2.1 million as a credit to income tax expense in our Condensed Consolidated Statements of Earnings for the quarter ended September 30, 2017. Using a modified retrospective application, the Company has elected to recognize forfeitures as they occur and recorded a $1.0 million increase to additional paid-in capital, a $0.6 million reduction to retained earnings, and a $0.4 million reduction to deferred taxes to reflect the incremental share-based compensation expense, net of the related tax impacts, that would have been recognized in prior years under the modified guidance. Presentation requirements for cash flows related to employee taxes paid using withheld shares had no impact to all periods presented as such cash flows have historically been presented as financing activities. We no longer classify excess tax benefits related to share-based awards as a financing cash inflow and an operating cash outflow. This classification requirement was adopted prospectively and, as such, our Condensed Consolidated Statement of Cash Flows has not been retrospectively adjusted. Pending Accounting Pronouncements — ASU 2017-12—In August 2017, the FASB issued guidance amending hedge accounting requirements. The purpose of this guidance is to better align a company's risk management activities and financial reporting requirements, and to simplify the application of hedge accounting. The effective date is the first quarter of fiscal 2020, with early adoption permitted. The Company does not expect the adoption of this guidance to have a material impact on our results of operations, cash flows, or disclosures. ASU 2014-09—In May 2014, the FASB issued an accounting standards update that replaces existing revenue recognition guidance. The new guidance requires a company to recognize revenue for the transfer of promised goods or services equal to the amount it expects to receive in exchange for those goods or services. The guidance includes a five-step framework to determine the timing and amount of revenue to recognize related to contracts with customers. Additionally, the guidance requires new and significantly enhanced disclosures about the nature, amount, timing, and uncertainty of revenue and cash flows from customer contracts as well as judgments made by a company when following the framework. The FASB continues to issue amendments to further clarify provisions of this guidance. These amendments will be effective upon adoption of the standard. The Company will adopt the standard beginning July 1, 2018 (fiscal 2019). The two permitted transition methods are the full retrospective method, in which case the standard would be applied to each prior reporting period presented and the cumulative effect of applying the standard would be recognized in the earliest period shown; or the modified retrospective method, in which case the cumulative effect of applying the standard would be recognized at the date of initial application. While a final decision has not been made, we currently anticipate adopting the standard using the modified retrospective method. We are in the process of documenting the impact of the guidance on our current accounting policies and practices to identify material differences, if any, that would result from applying the new requirements to our revenue contracts. We continue to make progress on our revenue recognition analyses and are currently evaluating the impact, if any, on changes to our business processes, systems, and controls to support recognition and disclosure requirements under the new guidance. As these analyses are completed, the Company will be better able to quantify the anticipated impact, if any, to our consolidated financial statements. |
Inventories (Tables)
Inventories (Tables) | 3 Months Ended |
Sep. 30, 2017 | |
Inventory Disclosure [Abstract] | |
Schedule of Inventory, Current | Major components of inventories are summarized below. Of total net inventory values shown, 61 percent are under the last-in first-out (LIFO) method at September 30, 2017 , and 65 percent at June 30, 2017 . (In thousands) September 30, 2017 June 30, Raw materials $ 12,553 $ 13,404 Work in process 10,841 8,665 Finished goods 1,159 1,111 24,553 23,180 Reserve for LIFO cost valuation (1,290 ) (1,290 ) Inventories $ 23,263 $ 21,890 |
Intangible Assets and Goodwill
Intangible Assets and Goodwill (Tables) | 3 Months Ended |
Sep. 30, 2017 | |
Goodwill and Intangible Assets Disclosure [Abstract] | |
Schedule of Finite-Lived Intangible Assets | Intangible assets consist of the following: September 30, 2017 June 30, 2017 (In thousands) Gross Accumulated Net Gross Accumulated Net Intangible assets subject to amortization National media Advertiser relationships $ 13,810 $ (11,817 ) $ 1,993 $ 18,610 $ (15,514 ) $ 3,096 Customer lists 4,200 (420 ) 3,780 7,280 (3,395 ) 3,885 Other 21,325 (9,662 ) 11,663 22,325 (9,850 ) 12,475 Local media Network affiliation agreements 229,309 (143,823 ) 85,486 229,309 (142,216 ) 87,093 Retransmission agreements 27,923 (11,754 ) 16,169 27,923 (10,700 ) 17,223 Other 1,670 (553 ) 1,117 1,680 (472 ) 1,208 Total $ 298,237 $ (178,029 ) 120,208 $ 307,127 $ (182,147 ) 124,980 Intangible assets not subject to amortization National media Internet domain names 7,827 7,827 Trademarks 147,915 147,915 Local media FCC licenses 675,161 675,161 Total 830,903 830,903 Intangible assets, net $ 951,111 $ 955,883 |
Schedule of Indefinite-Lived Intangible Assets | Intangible assets consist of the following: September 30, 2017 June 30, 2017 (In thousands) Gross Accumulated Net Gross Accumulated Net Intangible assets subject to amortization National media Advertiser relationships $ 13,810 $ (11,817 ) $ 1,993 $ 18,610 $ (15,514 ) $ 3,096 Customer lists 4,200 (420 ) 3,780 7,280 (3,395 ) 3,885 Other 21,325 (9,662 ) 11,663 22,325 (9,850 ) 12,475 Local media Network affiliation agreements 229,309 (143,823 ) 85,486 229,309 (142,216 ) 87,093 Retransmission agreements 27,923 (11,754 ) 16,169 27,923 (10,700 ) 17,223 Other 1,670 (553 ) 1,117 1,680 (472 ) 1,208 Total $ 298,237 $ (178,029 ) 120,208 $ 307,127 $ (182,147 ) 124,980 Intangible assets not subject to amortization National media Internet domain names 7,827 7,827 Trademarks 147,915 147,915 Local media FCC licenses 675,161 675,161 Total 830,903 830,903 Intangible assets, net $ 951,111 $ 955,883 |
Schedule of Goodwill | Changes in the carrying amount of goodwill were as follows: Three months ended September 30, 2017 2016 (In thousands) National Local Total National Local Total Balance at beginning of period Goodwill $ 943,803 $ 80,604 $ 1,024,407 $ 931,303 $ 68,775 $ 1,000,078 Accumulated impairment losses (116,949 ) — (116,949 ) (116,949 ) — (116,949 ) Total goodwill 826,854 80,604 907,458 814,354 68,775 883,129 Activity during the period Acquisition adjustments 100 — 100 — — — Balance at end of period Goodwill 943,903 80,604 1,024,507 931,303 68,775 1,000,078 Accumulated impairment losses (116,949 ) — (116,949 ) (116,949 ) — (116,949 ) Total goodwill $ 826,954 $ 80,604 $ 907,558 $ 814,354 $ 68,775 $ 883,129 |
Restructuring Accrual (Tables)
Restructuring Accrual (Tables) | 3 Months Ended |
Sep. 30, 2017 | |
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, 2017 2016 (In thousands) Balance at beginning of period $ 8,674 $ 7,388 Cash payments (2,953 ) (2,267 ) Balance at end of period $ 5,721 $ 5,121 |
Long-term Debt (Tables)
Long-term Debt (Tables) | 3 Months Ended |
Sep. 30, 2017 | |
Debt Disclosure [Abstract] | |
Schedule of Long-term Debt Instruments | Long-term debt consists of the following: (In thousands) September 30, 2017 June 30, Variable-rate credit facilities Asset-backed bank facility of $100 million, due 10/18/2019 $ 75,000 $ 75,000 Revolving credit facility of $200 million, due 11/30/2021 95,000 85,000 Term loan due 11/30/2021 237,500 240,625 Private placement notes 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 707,500 700,625 Unamortized debt issuance costs (2,241 ) (2,388 ) Current portion of long-term debt (62,500 ) (62,500 ) Long-term debt $ 642,759 $ 635,737 |
Pension and Postretirement Be23
Pension and Postretirement Benefit Plans (Tables) | 3 Months Ended |
Sep. 30, 2017 | |
Retirement Benefits [Abstract] | |
Schedule of Net Periodic Benefit Costs | The following table presents the components of net periodic benefit costs: Three months ended September 30, 2017 2016 (In thousands) Pension benefits Service cost $ 3,251 $ 3,137 Interest cost 1,470 1,225 Expected return on plan assets (2,616 ) (2,298 ) Prior service cost amortization 72 48 Actuarial loss amortization 513 897 Net periodic benefit costs $ 2,690 $ 3,009 Postretirement benefits Service cost $ 19 $ 23 Interest cost 82 80 Prior service credit amortization (85 ) (98 ) Actuarial gain amortization (81 ) (78 ) Net periodic benefit credit $ (65 ) $ (73 ) |
Earnings per Share (Tables)
Earnings per Share (Tables) | 3 Months Ended |
Sep. 30, 2017 | |
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, 2017 2016 (In thousands except per share data) Net earnings $ 33,441 $ 33,973 Basic average shares outstanding 44,779 44,558 Dilutive effect of stock options and equivalents 841 926 Diluted average shares outstanding 45,620 45,484 Earnings per share Basic earnings per share $ 0.75 $ 0.76 Diluted earnings per share 0.73 0.75 |
Fair Value Measurements (Tables
Fair Value Measurements (Tables) | 3 Months Ended |
Sep. 30, 2017 | |
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, 2017 June 30, 2017 (In thousands) Carrying Value Fair Value Carrying Value Fair Value Broadcast rights payable $ 43,667 $ 42,013 $ 31,660 $ 30,544 Total long-term debt 707,500 707,570 700,625 700,714 |
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, 2017 June 30, 2017 Property, plant, and equipment Corporate airplanes, held for sale $ — $ 1,927 Other assets Interest rate swaps 293 158 Accrued expenses and other liabilities Contingent consideration 25,906 4,000 Interest rate swaps 297 602 Other noncurrent liabilities Contingent consideration 4,047 30,211 |
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, 2017 2016 (in thousands) Contingent consideration Balance at beginning of period $ 34,211 $ 56,631 Payments (4,000 ) (4,000 ) Change in present value of contingent consideration (1) (258 ) 708 Balance at end of period $ 29,953 $ 53,339 Corporate airplanes, held for sale Balance at beginning of period $ 1,927 $ 2,800 Sale of corporate airplanes (1,927 ) — 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 accretion of the present value discount. |
Financial Information about I26
Financial Information about Industry Segments (Tables) | 3 Months Ended |
Sep. 30, 2017 | |
Segment Reporting [Abstract] | |
Schedule of Segment Reporting Information, by Segment | The following table presents financial information by segment: Three months ended September 30, 2017 2016 (In thousands) Revenues National media $ 238,960 $ 247,293 Local media 153,811 152,586 Total revenues $ 392,771 $ 399,879 Segment profit National media $ 28,256 $ 24,111 Local media 40,942 50,622 Unallocated corporate (12,400 ) (13,971 ) Income from operations 56,798 60,762 Interest expense, net (5,078 ) (4,749 ) Earnings before income taxes $ 51,720 $ 56,013 Depreciation and amortization National media $ 3,987 $ 4,518 Local media 7,938 8,990 Unallocated corporate 625 388 Total depreciation and amortization $ 12,550 $ 13,896 |
Summary of Significant Accoun27
Summary of Significant Accounting Policies (Details) - USD ($) $ in Thousands | 3 Months Ended | ||
Sep. 30, 2017 | Jul. 01, 2017 | Jun. 30, 2017 | |
New Accounting Pronouncements or Change in Accounting Principle [Line Items] | |||
Employee service share-based compensation, tax benefit from compensation expense | $ 2,100 | ||
Cumulative effect adjustment for adoption of ASU, increase (decrease) | 400 | ||
Deferred income taxes | (397,386) | $ (384,726) | |
Accounting Standards Update 2016-09, Forfeiture Rate Component [Member] | |||
New Accounting Pronouncements or Change in Accounting Principle [Line Items] | |||
Deferred income taxes | $ 400 | ||
Additional Paid-in Capital [Member] | |||
New Accounting Pronouncements or Change in Accounting Principle [Line Items] | |||
Cumulative effect adjustment for adoption of ASU, increase (decrease) | $ 1,042 | ||
Additional Paid-in Capital [Member] | Accounting Standards Update 2016-09, Forfeiture Rate Component [Member] | |||
New Accounting Pronouncements or Change in Accounting Principle [Line Items] | |||
Cumulative effect adjustment for adoption of ASU, increase (decrease) | 1,000 | ||
Retained Earnings [Member] | Accounting Standards Update 2016-09, Forfeiture Rate Component [Member] | |||
New Accounting Pronouncements or Change in Accounting Principle [Line Items] | |||
Cumulative effect adjustment for adoption of ASU, increase (decrease) | $ (600) |
Acquisitions and Dispositions (
Acquisitions and Dispositions (Details) - USD ($) $ in Thousands | Jul. 01, 2017 | Sep. 30, 2017 | Sep. 30, 2016 |
Business Acquisition [Line Items] | |||
Gain on disposition of assets | $ 3,282 | $ 0 | |
FY 2017 Acquisition [Member] | |||
Business Acquisition [Line Items] | |||
Increase in goodwill | 100 | ||
Decrease in intangible assets | 100 | ||
Charleston Tennis LLC [Member] | |||
Business Acquisition [Line Items] | |||
Ownership percentage sold | 70.00% | ||
Proceeds from divestiture of business | $ 600 | ||
Noncash or part noncash divestiture, amount of consideration received | $ 8,500 | ||
Noncash or part noncash divestiture, consideration installment period | 8 years | ||
Note receivable, discount | 3,800 | ||
Note receivable, allowance | 2,700 | ||
Remeasurement gain on disposition of assets | $ 1,000 | ||
Equity method investment, ownership percentage | 30.00% | ||
Charleston Tennis LLC [Member] | Selling, general, and administrative expenses [Member] | |||
Business Acquisition [Line Items] | |||
Gain on disposition of assets | $ 3,300 |
Inventories (Details)
Inventories (Details) - USD ($) $ in Thousands | Sep. 30, 2017 | Jun. 30, 2017 |
Inventory Disclosure [Abstract] | ||
Percentage of LIFO Inventory | 61.00% | 65.00% |
Raw materials | $ 12,553 | $ 13,404 |
Work in process | 10,841 | 8,665 |
Finished goods | 1,159 | 1,111 |
Subtotal | 24,553 | 23,180 |
Reserve for LIFO cost valuation | (1,290) | (1,290) |
Inventories | $ 23,263 | $ 21,890 |
Intangible Assets and Goodwil30
Intangible Assets and Goodwill - Intangible Assets (Details) - USD ($) $ in Thousands | 3 Months Ended | ||
Sep. 30, 2017 | Sep. 30, 2016 | Jun. 30, 2017 | |
Finite-Lived Intangible Assets [Line Items] | |||
Intangible assets subject to amortization, gross amount | $ 298,237 | $ 307,127 | |
Intangible assets subject to amortization, accumulated amortization | (178,029) | (182,147) | |
Intangible assets subject to amortization, net amount | 120,208 | 124,980 | |
Indefinite-lived Intangible Assets [Line Items] | |||
Intangible assets not subject to amortization | 830,903 | 830,903 | |
Intangible assets, net | 951,111 | 955,883 | |
Amortization expense | 4,672 | $ 4,784 | |
Future amortization expense for intangible assets [Abstract] | |||
Future amortization expense, fiscal 2018 | 17,100 | ||
Future amortization expense, fiscal 2019 | 14,600 | ||
Future amortization expense, fiscal 2020 | 13,700 | ||
Future amortization expense, fiscal 2021 | 9,700 | ||
Future amortization expense, fiscal 2022 | 7,300 | ||
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 | 147,915 | 147,915 | |
FCC licenses [Member] | Local media [Member] | |||
Indefinite-lived Intangible Assets [Line Items] | |||
Intangible assets not subject to amortization | 675,161 | 675,161 | |
Advertiser relationships [Member] | National media [Member] | |||
Finite-Lived Intangible Assets [Line Items] | |||
Intangible assets subject to amortization, gross amount | 13,810 | 18,610 | |
Intangible assets subject to amortization, accumulated amortization | (11,817) | (15,514) | |
Intangible assets subject to amortization, net amount | 1,993 | 3,096 | |
Customer lists [Member] | National media [Member] | |||
Finite-Lived Intangible Assets [Line Items] | |||
Intangible assets subject to amortization, gross amount | 4,200 | 7,280 | |
Intangible assets subject to amortization, accumulated amortization | (420) | (3,395) | |
Intangible assets subject to amortization, net amount | 3,780 | 3,885 | |
Other [Member] | National media [Member] | |||
Finite-Lived Intangible Assets [Line Items] | |||
Intangible assets subject to amortization, gross amount | 21,325 | 22,325 | |
Intangible assets subject to amortization, accumulated amortization | (9,662) | (9,850) | |
Intangible assets subject to amortization, net amount | 11,663 | 12,475 | |
Other [Member] | Local media [Member] | |||
Finite-Lived Intangible Assets [Line Items] | |||
Intangible assets subject to amortization, gross amount | 1,670 | 1,680 | |
Intangible assets subject to amortization, accumulated amortization | (553) | (472) | |
Intangible assets subject to amortization, net amount | 1,117 | 1,208 | |
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 | (143,823) | (142,216) | |
Intangible assets subject to amortization, net amount | 85,486 | 87,093 | |
Retransmission agreements [Member] | Local media [Member] | |||
Finite-Lived Intangible Assets [Line Items] | |||
Intangible assets subject to amortization, gross amount | 27,923 | 27,923 | |
Intangible assets subject to amortization, accumulated amortization | (11,754) | (10,700) | |
Intangible assets subject to amortization, net amount | $ 16,169 | $ 17,223 |
Intangible Assets and Goodwil31
Intangible Assets and Goodwill - Goodwill (Details) - USD ($) $ in Thousands | 3 Months Ended | |
Sep. 30, 2017 | Sep. 30, 2016 | |
Goodwill [Roll Forward] | ||
Goodwill, beginning balance | $ 1,024,407 | $ 1,000,078 |
Accumulated impairment loss | (116,949) | (116,949) |
Total goodwill | 907,458 | 883,129 |
Acquisition adjustments | 100 | 0 |
Goodwill, ending balance | 1,024,507 | 1,000,078 |
Accumulated impairment loss | (116,949) | (116,949) |
Total goodwill | 907,558 | 883,129 |
National media [Member] | ||
Goodwill [Line Items] | ||
Goodwill, purchase accounting adjustments | 100 | 0 |
Goodwill [Roll Forward] | ||
Goodwill, beginning balance | 943,803 | 931,303 |
Accumulated impairment loss | (116,949) | (116,949) |
Total goodwill | 826,854 | 814,354 |
Goodwill, ending balance | 943,903 | 931,303 |
Accumulated impairment loss | (116,949) | (116,949) |
Total goodwill | 826,954 | 814,354 |
Local media [Member] | ||
Goodwill [Line Items] | ||
Goodwill, purchase accounting adjustments | 0 | 0 |
Goodwill [Roll Forward] | ||
Goodwill, beginning balance | 80,604 | 68,775 |
Accumulated impairment loss | 0 | 0 |
Total goodwill | 80,604 | 68,775 |
Goodwill, ending balance | 80,604 | 68,775 |
Accumulated impairment loss | 0 | 0 |
Total goodwill | $ 80,604 | $ 68,775 |
Restructuring Accrual - Changes
Restructuring Accrual - Changes in Restructuring Accrual (Details) - USD ($) $ in Thousands | 3 Months Ended | |
Sep. 30, 2017 | Sep. 30, 2016 | |
Restructuring Reserve [Roll Forward] | ||
Balance at beginning of period | $ 8,674 | $ 7,388 |
Cash payments | (2,953) | (2,267) |
Balance at end of period | $ 5,721 | $ 5,121 |
Long-term Debt (Details)
Long-term Debt (Details) - USD ($) | 3 Months Ended | |
Sep. 30, 2017 | Jun. 30, 2017 | |
Debt Instrument [Line Items] | ||
Total long-term debt | $ 707,500,000 | $ 700,625,000 |
Unamortized debt issuance costs | (2,241,000) | (2,388,000) |
Current portion of long-term debt | (62,500,000) | (62,500,000) |
Long-term debt | $ 642,759,000 | 635,737,000 |
Subordinated note receivable, interest rate | 4.25% | |
Line of Credit [Member] | Asset Backed Bank Facility [Member] | ||
Debt Instrument [Line Items] | ||
Long-term debt, gross | $ 75,000,000 | 75,000,000 |
Line of credit facility, maximum borrowing capacity | 100,000,000 | 100,000,000 |
Accounts receivable outstanding under the revolving agreement | 174,000,000 | |
Line of Credit [Member] | Revolving Credit Facility [Member] | ||
Debt Instrument [Line Items] | ||
Long-term debt, gross | 95,000,000 | 85,000,000 |
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] | ||
Long-term debt, gross | 237,500,000 | 240,625,000 |
Senior Notes [Member] | Senior Notes 3.04% due 2018 [Member] | ||
Debt Instrument [Line Items] | ||
Long-term debt, gross | $ 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] | ||
Long-term debt, gross | $ 100,000,000 | $ 100,000,000 |
Senior Notes [Member] | Senior Notes Due 2024 [Member] | ||
Debt Instrument [Line Items] | ||
Long-term debt, gross | $ 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, 2017USD ($) | |
Interest Rate Swap [Member] | |
Derivative [Line Items] | |
Notional amount of derivative | $ 300,000,000 |
Maximum loss on counterparties failure to meet obligations | 300,000 |
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 | 1.24% |
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 | 1.33% |
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 | 1.32% |
Senior Notes Due 2022 and 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 Be35
Pension and Postretirement Benefit Plans (Details) - USD ($) $ in Thousands | 3 Months Ended | |
Sep. 30, 2017 | Sep. 30, 2016 | |
Pension Plans [Member] | ||
Components of Net Periodic Benefit Costs [Abstract] | ||
Service cost | $ 3,251 | $ 3,137 |
Interest cost | 1,470 | 1,225 |
Expected return on plan assets | (2,616) | (2,298) |
Prior service cost (credit) amortization | 72 | 48 |
Actuarial loss (gain) amortization | 513 | 897 |
Net periodic benefit costs (credit) | 2,690 | 3,009 |
Postretirement Benefit Plans [Member] | ||
Components of Net Periodic Benefit Costs [Abstract] | ||
Service cost | 19 | 23 |
Interest cost | 82 | 80 |
Prior service cost (credit) amortization | (85) | (98) |
Actuarial loss (gain) amortization | (81) | (78) |
Net periodic benefit costs (credit) | $ (65) | $ (73) |
Earnings per Share (Details)
Earnings per Share (Details) - USD ($) $ / shares in Units, shares in Thousands, $ in Thousands | 3 Months Ended | |
Sep. 30, 2017 | Sep. 30, 2016 | |
Earnings Per Share [Abstract] | ||
Net earnings | $ 33,441 | $ 33,973 |
Basic average shares outstanding (in shares) | 44,779 | 44,558 |
Dilutive effect of stock options and equivalents (in shares) | 841 | 926 |
Diluted average shares outstanding (in shares) | 45,620 | 45,484 |
Earnings per share | ||
Basic earnings per share (in usd per share) | $ 0.75 | $ 0.76 |
Diluted earnings per share (in usd per share) | $ 0.73 | $ 0.75 |
Antidilutive Securities Excluded from Computation of Earnings Per Share [Line Items] | ||
Option exercise purchases | 300 | 300 |
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 | 500 |
Antidilutive options excluded from calculation of earnings per share, weighted average exercise price (in usd per share) | $ 56.14 | $ 54.11 |
Fair Value Measurements - Carry
Fair Value Measurements - Carrying Value and Estimated Fair Value of Financial Instruments (Details) - USD ($) $ in Thousands | Sep. 30, 2017 | Jun. 30, 2017 |
Carrying Value [Member] | ||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ||
Broadcast rights payable | $ 43,667 | $ 31,660 |
Total long-term debt | 707,500 | 700,625 |
Fair Value [Member] | ||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ||
Broadcast rights payable | 42,013 | 30,544 |
Total long-term debt | $ 707,570 | $ 700,714 |
Fair Value Measurements - Recur
Fair Value Measurements - Recurring Basis (Details) - Measured at fair value on recurring basis [Member] - USD ($) $ in Thousands | Sep. 30, 2017 | Jun. 30, 2017 |
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 | $ 0 | $ 1,927 |
Other assets [Member] | Level 2 [Member] | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Interest rate swaps | 293 | 158 |
Accrued expenses and other liabilities [Member] | Level 3 [Member] | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Contingent consideration | 25,906 | 4,000 |
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 | 297 | 602 |
Other noncurrent liabilities [Member] | Level 3 [Member] | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Contingent consideration | $ 4,047 | $ 30,211 |
Fair Value Measurements - Chang
Fair Value Measurements - Changes in Fair Value of Level 3 Contingent Consideration (Details) - Level 3 [Member] - USD ($) $ in Thousands | 3 Months Ended | |
Sep. 30, 2017 | Sep. 30, 2016 | |
Corporate airplanes [Member] | ||
Corporate airplanes [Roll Forward] | ||
Balance at beginning of period | $ 1,927 | $ 2,800 |
Sale of corporate airplanes | (1,927) | 0 |
Balance at end of period | 0 | 2,800 |
Contingent Consideration [Member] | ||
Contingent consideration [Roll Forward] | ||
Balance at beginning of period | 34,211 | 56,631 |
Payments | (4,000) | (4,000) |
Change in present value of contingent consideration | (258) | 708 |
Balance at end of period | $ 29,953 | $ 53,339 |
Financial Information about I40
Financial Information about Industry Segments (Details) $ in Thousands | 3 Months Ended | |
Sep. 30, 2017USD ($)measuresegment | Sep. 30, 2016USD ($) | |
Segment Reporting Information [Line Items] | ||
Number of reportable segments | segment | 2 | |
Number of principal financial measures | measure | 2 | |
Total revenues | $ 392,771 | $ 399,879 |
Income from operations | 56,798 | 60,762 |
Interest expense, net | (5,078) | (4,749) |
Earnings before income taxes | 51,720 | 56,013 |
Depreciation and amortization | 12,550 | 13,896 |
National media [Member] | ||
Segment Reporting Information [Line Items] | ||
Total revenues | 238,960 | 247,293 |
Income from operations | 28,256 | 24,111 |
Depreciation and amortization | 3,987 | 4,518 |
Local media [Member] | ||
Segment Reporting Information [Line Items] | ||
Total revenues | 153,811 | 152,586 |
Income from operations | 40,942 | 50,622 |
Depreciation and amortization | 7,938 | 8,990 |
Unallocated corporate [Member] | ||
Segment Reporting Information [Line Items] | ||
Income from operations | (12,400) | (13,971) |
Depreciation and amortization | $ 625 | $ 388 |