Document and Entity Information
Document and Entity Information - shares | 6 Months Ended | |
Jun. 30, 2018 | Jul. 31, 2018 | |
Document And Entity Information [Abstract] | ||
Entity Registrant Name | VIAD CORP | |
Entity Central Index Key | 884,219 | |
Document Type | 10-Q | |
Document Period End Date | Jun. 30, 2018 | |
Amendment Flag | false | |
Document Fiscal Year Focus | 2,018 | |
Document Fiscal Period Focus | Q2 | |
Current Fiscal Year End Date | --12-31 | |
Trading Symbol | VVI | |
Entity Filer Category | Large Accelerated Filer | |
Entity Common Stock, Shares Outstanding | 20,325,537 |
CONDENSED CONSOLIDATED BALANCE
CONDENSED CONSOLIDATED BALANCE SHEETS (Unaudited) - USD ($) $ in Thousands | Jun. 30, 2018 | Dec. 31, 2017 | ||
Current assets | ||||
Cash and cash equivalents | $ 49,386 | $ 53,723 | ||
Accounts receivable, net of allowances for doubtful accounts of $2,063 and $2,023, respectively | 141,633 | 104,811 | ||
Inventories | 20,361 | 17,550 | [1] | |
Current contract costs | 21,525 | 13,436 | [1] | |
Other current assets | 31,167 | 19,741 | [1] | |
Total current assets | 264,072 | 209,261 | ||
Property and equipment, net | 324,951 | 305,571 | ||
Other investments and assets | 49,580 | 48,187 | [1] | |
Deferred income taxes | 21,146 | 23,548 | ||
Goodwill | 266,023 | 270,551 | ||
Other intangible assets, net | 57,397 | 62,781 | ||
Total Assets | 983,169 | 919,899 | ||
Current liabilities | ||||
Accounts payable | 96,569 | 77,380 | ||
Contract liabilities | 50,419 | 31,981 | [2] | |
Accrued compensation | 29,280 | 30,614 | ||
Other current liabilities | 47,711 | 40,154 | [2] | |
Current portion of debt and capital lease obligations | [3] | 190,967 | 152,599 | |
Total current liabilities | 414,946 | 332,728 | ||
Long-term debt and capital lease obligations | 48,511 | 56,593 | ||
Pension and postretirement benefits | 27,661 | 28,135 | ||
Other deferred items and liabilities | 49,357 | 52,858 | ||
Total liabilities | 540,475 | 470,314 | ||
Commitments and contingencies | ||||
Redeemable noncontrolling interest | 6,513 | 6,648 | ||
Viad Corp stockholders’ equity: | ||||
Common stock, $1.50 par value, 200,000,000 shares authorized, 24,934,981 shares issued and outstanding | 37,402 | 37,402 | ||
Additional capital | 574,104 | 574,458 | ||
Retained earnings | 76,458 | 65,836 | ||
Unearned employee benefits and other | 214 | 218 | ||
Accumulated other comprehensive loss | (33,719) | (22,568) | ||
Common stock in treasury, at cost, 4,616,834 and 4,518,099 shares, respectively | (231,687) | (226,215) | ||
Total Viad stockholders’ equity | 422,772 | 429,131 | ||
Non-redeemable noncontrolling interest | 13,409 | 13,806 | ||
Total stockholders’ equity | 436,181 | 442,937 | [4] | |
Total Liabilities and Stockholders’ Equity | $ 983,169 | $ 919,899 | ||
[1] | Contract costs primarily consist of deferred core services costs (including labor and vendor purchases) required to service future exhibitions, conferences and other events, and commission expenses incurred to obtain contracts. All such costs were previously included in “Inventories” and in certain other assets. As a result of the changes noted above, deferred core services costs related to exhibitions and events that are scheduled to occur longer than one year in the future are currently included in “Other investments and assets”. The impact of this change reduced total current assets at December 31, 2017 by $0.7 million. The amount of deferred core services costs included in “Other investments and assets” at June 30, 2018 was $5.1 million. | |||
[2] | In connection with the adoption of Topic 606, we elected to more prominently present contract liabilities on the Consolidated Balance Sheets. Consequently, customer deposits of $33.4 million as of December 31, 2017, have been reclassified to “Contract liabilities” and to other certain current liabilities to conform to the current period presentation. | |||
[3] | Borrowings under the revolving credit facilities are classified as current because all borrowed amounts are due within one year. | |||
[4] | We determined that the cumulative effect of initially applying Topic 606 as an adjustment to the opening balance of retained earnings was not material, and therefore we made no adjustment. |
CONDENSED CONSOLIDATED BALANCE3
CONDENSED CONSOLIDATED BALANCE SHEETS (Parenthetical) (Unaudited) - USD ($) $ in Thousands | Jun. 30, 2018 | Dec. 31, 2017 |
Statement Of Financial Position [Abstract] | ||
Allowance for doubtful accounts | $ 2,063 | $ 2,023 |
Common stock, par value | $ 1.50 | $ 1.50 |
Common stock, shares authorized | 200,000,000 | 200,000,000 |
Common stock, shares issued | 24,934,981 | 24,934,981 |
Common stock, shares outstanding | 24,934,981 | 24,934,981 |
Treasury stock, shares | 4,616,834 | 4,518,099 |
CONDENSED CONSOLIDATED STATEMEN
CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS (Unaudited) - USD ($) shares in Thousands, $ in Thousands | 3 Months Ended | 6 Months Ended | |||
Jun. 30, 2018 | Jun. 30, 2017 | Jun. 30, 2018 | Jun. 30, 2017 | ||
Revenue: | |||||
Total revenue | $ 363,677 | $ 364,774 | $ 641,105 | $ 690,581 | |
Costs and expenses: | |||||
Business interruption gain | (377) | (1,087) | (567) | (1,140) | |
Corporate activities | 2,535 | 2,920 | 4,752 | 5,461 | |
Interest income | (53) | (42) | (137) | (100) | |
Interest expense | 2,354 | 2,059 | 4,423 | 4,164 | |
Other expense | [1] | 543 | 222 | 781 | 674 |
Restructuring charges | 662 | 168 | 824 | 562 | |
Impairment recoveries | (35) | (2,247) | (35) | (4,631) | |
Total costs and expenses | 330,904 | 327,231 | 623,733 | 642,968 | |
Income from continuing operations before income taxes | 32,773 | 37,543 | 17,372 | 47,613 | |
Income tax expense | 9,114 | 10,178 | 4,476 | 12,919 | |
Income from continuing operations | 23,659 | 27,365 | 12,896 | 34,694 | |
Income (loss) from discontinued operations | (279) | 509 | 649 | (307) | |
Net income | 23,380 | 27,874 | 13,545 | 34,387 | |
Net loss attributable to non-redeemable noncontrolling interest | 33 | 73 | 397 | 337 | |
Net loss attributable to redeemable noncontrolling interest | 77 | 161 | |||
Net income attributable to Viad | $ 23,490 | $ 27,947 | $ 14,103 | $ 34,724 | |
Diluted income per common share: | |||||
Continuing operations attributable to Viad common stockholders | $ 1.16 | $ 1.35 | $ 0.65 | $ 1.72 | |
Discontinued operations attributable to Viad common stockholders | (0.01) | 0.02 | 0.04 | (0.02) | |
Net income attributable to Viad common stockholders | [2] | $ 1.15 | $ 1.37 | $ 0.69 | $ 1.70 |
Weighted-average outstanding and potentially dilutive common shares | 20,436 | 20,364 | 20,446 | 20,355 | |
Basic income per common share: | |||||
Continuing operations attributable to Viad common stockholders | $ 1.16 | $ 1.35 | $ 0.65 | $ 1.72 | |
Discontinued operations attributable to Viad common stockholders | (0.01) | 0.02 | 0.04 | (0.02) | |
Net income attributable to Viad common stockholders | $ 1.15 | $ 1.37 | $ 0.69 | $ 1.70 | |
Weighted-average outstanding common shares | 20,209 | 20,140 | 20,208 | 20,112 | |
Dividends declared per common share | $ 0.10 | $ 0.10 | $ 0.20 | $ 0.20 | |
Amounts attributable to Viad common stockholders | |||||
Income from continuing operations | $ 23,769 | $ 27,438 | $ 13,454 | $ 35,031 | |
Income (loss) from discontinued operations | (279) | 509 | 649 | (307) | |
Net income attributable to Viad | 23,490 | 27,947 | 14,103 | 34,724 | |
Services | |||||
Revenue: | |||||
Total revenue | 314,723 | 319,179 | 560,271 | 609,822 | |
Costs and expenses: | |||||
Costs and expenses | 280,842 | 281,909 | 538,137 | 562,547 | |
Products | |||||
Revenue: | |||||
Total revenue | 48,954 | 45,595 | 80,834 | 80,759 | |
Costs and expenses: | |||||
Costs and expenses | $ 44,433 | $ 43,329 | $ 75,555 | $ 75,431 | |
[1] | We adopted ASU 2017-07 on January 1, 2018, which requires retrospective adoption. As a result, we recorded the nonservice cost component of net periodic benefit cost within other expense for the three and six months ended June 30, 2018, and we reclassified $0.2 million from operating expenses to other expense for the three months ended June 30, 2017 and $0.7 million for the six months ended June 30, 2017 to conform with current period presentation. Refer to Note 1 – Overview and Basis of Presentation for additional details on the impact of this adoption on our Condensed Consolidated Statements of Operations. | ||||
[2] | Diluted income (loss) per share amount cannot exceed basic income (loss) per share. |
CONDENSED CONSOLIDATED STATEME5
CONDENSED CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME (Unaudited) - USD ($) $ in Thousands | 3 Months Ended | 6 Months Ended | |||
Jun. 30, 2018 | Jun. 30, 2017 | Jun. 30, 2018 | Jun. 30, 2017 | ||
Statement Of Income And Comprehensive Income [Abstract] | |||||
Net income | $ 23,380 | $ 27,874 | $ 13,545 | $ 34,387 | |
Other comprehensive income (loss): | |||||
Unrealized gains on investments, net of tax | [1] | 33 | 95 | ||
Unrealized foreign currency translation adjustments, net of tax | [1] | (8,095) | 7,360 | (11,204) | 9,705 |
Change in net actuarial gain, net of tax | [1] | 220 | 171 | 849 | 282 |
Change in prior service cost, net of tax | [1] | 4 | (56) | (180) | (134) |
Adoption of ASU 2016-01 | (616) | ||||
Comprehensive income | 15,509 | 35,382 | 2,394 | 44,335 | |
Comprehensive loss attributable to non-redeemable noncontrolling interest | 33 | 73 | 397 | 337 | |
Comprehensive loss attributable to redeemable noncontrolling interest | 77 | 161 | |||
Comprehensive income attributable to Viad | $ 15,619 | $ 35,455 | $ 2,952 | $ 44,672 | |
[1] | The tax effect on other comprehensive income (loss) is not significant. |
CONDENSED CONSOLIDATED STATEME6
CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS (Unaudited) - USD ($) $ in Thousands | 6 Months Ended | |
Jun. 30, 2018 | Jun. 30, 2017 | |
Cash flows from operating activities | ||
Net income | $ 13,545 | $ 34,387 |
Adjustments to reconcile net income to net cash provided by operating activities: | ||
Depreciation and amortization | 28,178 | 26,666 |
Deferred income taxes | 2,727 | 412 |
(Income) loss from discontinued operations | (649) | 307 |
Restructuring charges | 824 | 562 |
Impairment recoveries | (35) | (4,631) |
Gains on dispositions of property and other assets | (113) | (45) |
Share-based compensation expense | 2,762 | 4,747 |
Other non-cash items, net | 2,681 | 2,373 |
Change in operating assets and liabilities (excluding the impact of acquisitions): | ||
Receivables | (37,594) | (38,869) |
Inventories | (3,043) | (3,210) |
Current contract costs | (8,637) | (1,601) |
Accounts payable | 20,140 | 30,156 |
Restructuring liabilities | (904) | (1,496) |
Accrued compensation | (5,753) | (3,834) |
Contract liabilities | 20,266 | 6,346 |
Income taxes payable | (8,904) | (81) |
Other assets and liabilities, net | 5,969 | 7,010 |
Net cash provided by operating activities | 31,460 | 59,199 |
Cash flows from investing activities | ||
Capital expenditures | (48,057) | (27,448) |
Proceeds from insurance | 6,886 | |
Cash paid for acquired businesses, net | (1,661) | |
Proceeds from dispositions of property and other assets | 1,292 | 662 |
Net cash used in investing activities | (46,765) | (21,561) |
Cash flows from financing activities | ||
Proceeds from borrowings | 80,051 | 52,574 |
Payments on debt and capital lease obligations | (51,607) | (63,065) |
Dividends paid on common stock | (4,095) | (4,077) |
Debt issuance costs | (5) | |
Common stock purchased for treasury | (10,085) | (1,204) |
Proceeds from exercise of stock options | 84 | |
Net cash provided by (used in) financing activities | 14,348 | (15,777) |
Effect of exchange rate changes on cash and cash equivalents | (3,380) | 1,281 |
Net change in cash and cash equivalents | (4,337) | 23,142 |
Cash and cash equivalents, beginning of year | 53,723 | 20,900 |
Cash and cash equivalents, end of period | $ 49,386 | $ 44,042 |
Overview and Basis of Presentat
Overview and Basis of Presentation | 6 Months Ended |
Jun. 30, 2018 | |
Organization Consolidation And Presentation Of Financial Statements [Abstract] | |
Overview and Basis of Presentation | Note 1. Overview and Basis of Presentation Nature of Business We are an international experiential services company with operations principally in the United States, Canada, the United Kingdom, continental Europe, and the United Arab Emirates. We are committed to providing unforgettable experiences to our clients and guests. We operate through three reportable business segments: GES U.S., GES International (collectively, “GES”), and Pursuit. GES GES is a global, full-service provider for live events. GES’ clients include event organizers and corporate brand marketers. Event organizers schedule and run the event from start to finish. Corporate brand marketers include exhibitors and domestic and international corporations that want to promote their brands, services and innovations, feature new products, and build business relationships. GES serves corporate brand marketers when they exhibit at shows and when GES is engaged to manage their global exhibit program or produce their proprietary corporate events. Services and Products Offered GES offers a full suite of services and products for event organizers and corporate brand marketers • Core Services. GES provides official contracting services and products, including the design and production of experiences, material handling, rigging, electrical, and other on-site services. • Audio-Visual. GES offers a variety of high-impact multi-media services and technology, including video and lighting production, digital studio services, entertainment services and talent coordination, projection mapping, and computer rental and support. • Event Technology. GES offers a comprehensive range of event technology services, including event accommodation solutions, registration and data analytics, and event management tools. Markets Served GES provides the above services and products across four live event markets: Exhibitions, Conferences, Corporate Events, and Consumer Events (collectively, “Live Events”). • Exhibitions facilitate business-to-business and business-to-consumer sales and marketing. • Conferences facilitate attendee education and may also include an expo or trade show to further facilitate attendee education and to facilitate business-to-business and business-to-consumer sales and marketing. • Corporate events facilitate attendee education of the sponsoring company’s products or product ecosystem. • Consumer events entertain, educate, or create an experience, typically around a specific genre. Pursuit Pursuit is a collection of iconic natural and cultural destination travel experiences that enjoy perennial demand. Pursuit offers guests distinctive and world renowned experiences through its collection of unique hotels, lodges, recreational attractions, and transportation services Services and Products Offered Pursuit comprises four lines of business: Hospitality, including food and beverage services and retail operations; Attractions, including food and beverage services and retail operations; Transportation; and Travel Planning. Services offered to these lines of business (or a subset of these) include accommodations, admissions, transportation, and travel planning. Products offered include food and beverage and retail. Markets Served Pursuit provides the above services and products across the following geographic markets: • Banff Jasper Collection . The Banff Jasper Collection is a leading travel and tourism provider in the Canadian Rockies in Alberta, Canada with two lodging properties in Banff National Park, one lodging property in Jasper National Park, five world-class recreational attractions, food and beverage services, retail operations, sightseeing and transportation services. • Alaska Collection. The Alaska Collection is a leading travel and tourism provider in Alaska with two lodging properties and a sightseeing excursion in Denali National Park and Preserve, a lodge in Talkeetna, Alaska’s top-rated wildlife and glacier cruise, and two lodging properties located near Kenai Fjords National Park. The Alaska Collection also provides food and beverage services and retail operations. • Glacier Park Collection. The Glacier Park Collection is an operator of seven lodging properties, 12 retail shops, and 11 dining outlets in and around Glacier National Park in Montana, and Waterton Lakes National Park in Alberta, Canada, with a leading share of rooms in that market. • FlyOver: o FlyOver Canada, located in Vancouver, British Columbia, is a recreational attraction that provides a virtual flight ride experience that combines motion seating, spectacular media, and visual effects including wind, scents, and mist to give the unforgettable experience of flying across Canada. o FlyOver Iceland is a recreational attraction under construction in Reykjavik, Iceland that will provide a virtual flight ride experience over some of Iceland’s most spectacular scenery and natural wonders with the same effects as FlyOver Canada. The new attraction is expected to open in 2019. Basis of Presentation Viad’s accompanying unaudited condensed consolidated financial statements have been prepared in accordance with accounting principles generally accepted in the United States of America (“GAAP”) and with the instructions to Form 10-Q and Article 10 of Regulation S-X for interim financial information. Accordingly, these financial statements do not include all of the information required by GAAP or SEC rules and regulations for complete financial statements. These financial statements reflect all adjustments (consisting of normal recurring adjustments) necessary for a fair presentation of the results for the interim periods presented. Interim results are not necessarily indicative of the results for the full year. We have recast certain prior period amounts to conform to the current period presentation due to the adoption of new accounting standards. These unaudited condensed consolidated financial statements should be read in conjunction with our Annual Report on Form 10-K for the year ended December 31, 2017, filed with the SEC on February 28, 2018 (“2017 Form 10-K”). The condensed consolidated financial statements include the accounts of Viad and its subsidiaries. We have eliminated all significant intercompany account balances and transactions in consolidation. Impact of Recent Accounting Pronouncements The following table provides a brief description of recent accounting pronouncements: Standard Description Date of adoption Effect on the financial statements Standards Not Yet Adopted ASU 2016-02 , Leases (Topic 842) The amendment requires lessees to recognize on their balance sheet a right-of-use asset and a lease liability for leases with lease terms greater than one year. The amendment requires additional disclosures about leasing arrangements, and previously allowed for only a modified retrospective approach to adoption. Subsequent to the issuance of ASU 2016-02, the FASB issued additional updates, which do not change the core principle of the guidance stated in ASU 2016-02. Rather, the updates provide additional (and optional) transition methods including the election under ASU 2018-11, which allows companies to not restate comparative periods when initially applying the transition requirements. Early adoption is permitted. January 1, 2019 We are currently evaluating the potential impact the adoption of this new guidance will have on our financial position or results of operations including analyzing our existing operating leases. We do not expect our Consolidated Statement of Operations to be materially impacted. We expect the most significant impact will relate to facility and equipment leases, which are currently recorded as operating leases. Based on our leases in place on June 30, 2018, we currently anticipate recognizing an additional right-of-use asset and lease liability on the balance sheet in excess of $60 million upon adoption of the standard on January 1, 2019. We expect to adopt ASU 2018-11, which allows companies to use an optional transition method under which a cumulative adjustment to retained earnings during the period of adoption is recorded and prior periods would not require restatement. We are continuing our assessment, which may identify other impacts. ASU 2018-02 , Income Statement—Reporting Comprehensive Income (Topic 220): Reclassification of Certain Tax Effects from Accumulated Other Comprehensive Income The amendment addresses the effect of the Tax Cuts and Jobs Act (the “Tax Act”) on items within accumulated other comprehensive income (“AOCI”). Under current GAAP, the effects of changes in tax rates and laws on deferred tax balances are recorded as a component of income tax expense in the period in which the law was enacted. When deferred tax balances related to items originally recorded in AOCI are adjusted, certain tax effects become stranded in AOCI. This amendment allows a reclassification from AOCI to retained earnings for stranded tax effects. Early adoption is permitted. January 1, 2019 We are currently evaluating the impact of the adoption of this new guidance on our consolidated financial statements and related disclosures. Refer to Note 16 – Income Taxes for additional information. Standard Description Date of adoption Effect on the financial statements Standards Recently Adopted ASU 2014-09 , Revenue from Contracts with Customers (Topic 606) The standard established a new recognition model that requires revenue to be recognized in a manner to depict the transfer of goods or services to a customer at an amount that reflects the consideration expected to be received in exchange for those goods or services. January 1, 2018 We adopted ASU 2014-09 and its related amendments (collectively, “Topic 606”) on January 1, 2018 using the modified retrospective transition method. We determined that the cumulative effect of initially applying the new standard as an adjustment to the opening balance of retained earnings was not material (less than $0.2 million) and, therefore, we made no adjustment. The adoption of this standard did not have a material impact on our consolidated financial statements. The impact primarily related to the deferral of certain commissions which were previously expensed as incurred but are now capitalized and amortized over the period of contract performance, and the deferral of certain costs incurred in connection with trade shows which were previously expensed as incurred but are now capitalized and expensed upon the completion of the show. The new guidance resulted in expanded disclosures and processes to identify performance obligations. See additional transition disclosures immediately following this table and Note 2 – Revenue and Related Contract Costs and Contract Liabilities. ASU 2016-01 , Financial Instruments–Overall: Recognition and Measurement of Financial Assets and Financial Liabilities The amendment includes a requirement for equity investments (except those accounted for under the equity method of accounting or those that result in consolidation of the investee) to be measured at fair value with changes in fair value recognized in net income. January 1, 2018 We adopted this guidance prospectively in the first quarter of 2018 and recorded a cumulative-effect adjustment of $0.6 million to increase beginning retained earnings. ASU 2017-04 , Intangibles - Goodwill and Other (Topic 350) - Simplifying the Test for Goodwill Impairment The amendment eliminates the requirement to estimate the implied fair value of goodwill if it is determined that the carrying amount of a reporting unit exceeds its fair value. Goodwill impairment will now be recognized by the amount by which a reporting unit’s carrying value exceeds its fair value, not to exceed the carrying amount of goodwill. Early adoption was permitted for interim or annual goodwill impairment tests performed on testing dates after January 1, 2017. January 1, 2018 We early adopted this new guidance on January 1, 2018 on a prospective basis. As a result, we expect the adoption to reduce the complexity surrounding the analysis of goodwill impairment during our annual goodwill impairment tests as of October 31, 2018, or if an event occurs or circumstances change that would more-likely-than-not reduce the fair value of a reporting unit below its carrying value. ASU 2017-07 , Compensation - Retirement Benefits (Topic 715) - Improving the Presentation of Net Periodic Pension Cost and Net Periodic Postretirement Benefit Cost The amendment requires an employer to disaggregate the service cost components from the other components of net benefit cost. The service cost components are required to be presented in operating income and the other components of net benefit cost are required to be presented outside of operating income. January 1, 2018 We adopted this new standard retrospectively on January 1, 2018. As a result, we recorded the nonservice cost component of net periodic benefit cost within other expense and reclassified from operating expenses (cost of services and corporate activities) to other expense $0.2 million for the three months ended June 30, 2017 and $0.7 million for the six months ended June 30, 2017 to conform to current period presentation. For additional details on the impact this adoption had on our results of operations, see the disclosures immediately following this table. ASU 2018-05 , Income Taxes (Topic 740)—Amendments to SEC paragraphs pursuant to SEC Staff Accounting Bulletin No. 118 This amends ASC 740 to incorporate the requirements of SEC Staff Accounting Bulletin No. 118, which provides guidance on accounting for the tax effects of the Tax Act for SEC registrants who do not have the necessary information available, prepared, or analyzed in reasonable detail to complete the accounting for certain income tax effects of the Tax Act. Upon issuance We recognized the provisional tax impacts of the Tax Act in the fourth quarter of 2017. During the three months ended June 30, 2018, we recorded a tax benefit of $0.1 million to the provisional estimate for the reduction in the corporate tax rate applied to the deferred tax assets included in the financial statements as of December 31, 2017 for the impact of the Tax Act. We continue to anticipate finalizing our analysis in connection with the completion of our tax return for 2017 to be filed in 2018. Refer to Note 16 – Income Taxes for additional information. Prior to January 1, 2018, we presented revenue in our Condensed Consolidated Statements of Operations in three separate line items as follows: Three Months Ended Six Months Ended (in thousands) June 30, 2017 June 30, 2017 Revenue: Exhibition and event services $ 275,295 $ 551,243 Exhibits and environments 44,814 86,737 Pursuit services 44,665 52,601 Total revenue $ 364,774 $ 690,581 In connection with the adoption of Topic 606, we changed the presentation of revenue in our Condensed Consolidated Statements of Operations and now present total services revenue and total products revenue. As a result, we changed the prior reporting period to conform to the current period presentation as follows: Three Months Ended Six Months Ended (in thousands) June 30, 2017 June 30, 2017 Revenue: Services $ 319,179 $ 609,822 Products 45,595 80,759 Total revenue $ 364,774 $ 690,581 As a result of the change in presentation of revenue in the Condensed Consolidated Statements of Operations, we also made the following conforming changes to the presentation of cost of services and cost of products. The following table also summarizes the impact of adopting ASU 2017-07 on our Condensed Consolidated Statements of Operations: Three Months Ended June 30, 2017 (in thousands) As Previously Reported Reclassifications to Conform with Revenue Presentation ASU 2017-07 As Newly Reported Cost of services $ 284,884 $ (2,841 ) $ (134 ) $ 281,909 Cost of products $ 40,488 $ 2,841 $ — $ 43,329 Corporate activities $ 3,008 $ — $ (88 ) $ 2,920 Other expense $ — $ — $ 222 $ 222 Six Months Ended June 30, 2017 (in thousands) As Previously Reported Reclassifications to Conform with Revenue Presentation ASU 2017-07 As Newly Reported Cost of services $ 558,493 $ 4,571 $ (517 ) $ 562,547 Cost of products $ 80,002 $ (4,571 ) $ — $ 75,431 Corporate activities $ 5,618 $ — $ (157 ) $ 5,461 Other expense $ — $ — $ 674 $ 674 Significant Accounting Policies Use of Estimates The preparation of financial statements in conformity with GAAP requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities at the date of the financial statements and the reported amounts of revenue and expenses during the reported period. Estimates and assumptions are used in accounting for, among other things, the fair value of our reporting units used to perform annual impairment testing of recorded goodwill; allowances for uncollectible accounts receivable; provisions for income taxes, including uncertain tax positions; valuation allowances related to deferred tax assets; liabilities for losses related to self-insured liability claims; liabilities for losses related to environmental remediation obligations; sublease income associated with restructuring liabilities; assumptions used to measure pension and postretirement benefit costs and obligations; assumptions used to determine share-based compensation costs under the fair value method; assumptions used to determine the redemption value of redeemable noncontrolling interests; and allocation of purchase price of acquired businesses. Actual results could differ from these and other estimates. Revenue Recognition Beginning January 1, 2018, revenue is measured based on a specified amount of consideration in a contract with a customer, net of commissions paid to customers and amounts collected on behalf of third parties. We recognize revenue when a performance obligation is satisfied by transferring control of a product or service to a customer. GES’ service revenue is primarily derived through its comprehensive range of services to event organizers and corporate brand marketers including Core Services, Audio-Visual, and Event Technology . Pursuit’s service revenue is derived through its accommodations, admissions, transportation, and travel planning services. Pursuit’s product revenue is derived through food and beverage and retail sales. Pursuit’s revenue is recognized at the time services are performed or upon delivery of the product. Pursuit’s service revenue is recognized over time as the customer simultaneously receives and consumes the benefits. Pursuit’s product revenue is recognized at a point in time. The impact of adopting Topic 606 on our unaudited Condensed Consolidated Statement of Operations was $0.8 million to cost of services and $0.6 million to net income for the three months ended June 30, 2018 and $1.6 million to cost of services and $1.2 million to net income for the six months ended June 30, 2018. Noncontrolling Interests Non-redeemable noncontrolling interest represents the portion of equity in a subsidiary that is not attributable, directly or indirectly, to us. Our non-redeemable noncontrolling interest relates to the 20% equity ownership interest that we do not own in Glacier Park, Inc. We report non-redeemable noncontrolling interest within stockholders’ equity in the Condensed Consolidated Balance Sheets. The amount of consolidated net income attributable to Viad and the non-redeemable noncontrolling interest is presented in the Condensed Consolidated Statements of Operations. Noncontrolling interests with redemption features that are not solely within our control are considered redeemable noncontrolling interests. Our redeemable noncontrolling interest relates to the 54.5% equity ownership interest in Esja Attractions ehf. (“Esja”). The Esja Insurance Recoveries Receipts from insurance up to the amount of the recognized losses are considered recoveries and are accounted for when they are probable of receipt. Anticipated proceeds in excess of the recognized loss are considered a gain contingency. A contingency gain for anticipated insurance proceeds in excess of losses already recognized is not recognized until all contingencies relating to the insurance claim have been resolved. Insurance proceeds allocated to business interruption gains are reported as cash flows from operating activities, and proceeds allocated to impairment recoveries are reported as cash flows from investing activities. Insurance proceeds used for capitalizable costs are classified as cash flows from investing activities, and proceeds used for non-capitalizable costs are classified as operating activities. |
Revenue and Related Contract Co
Revenue and Related Contract Costs and Contract Liabilities | 6 Months Ended |
Jun. 30, 2018 | |
Revenue From Contract With Customer [Abstract] | |
Revenue and Related Contract Costs and Contract Liabilities | Note 2. Revenue and Related Contract Costs and Contract Liabilities GES’ performance obligations consist of services or product(s) outlined in a contract. While multi-year contracts are often signed for recurring events, the obligations for each occurrence are well defined and conclude upon the occurrence of each event. The obligations are typically the provision of services or sale of a product in connection with an exhibition, conference, or other event. Revenue for services is recognized when we have a right to invoice at the close of the exhibition, conference, or corporate event, which typically lasts one to three days. Revenue for consumer events is recognized over the duration of the event. Revenue for products is recognized upon delivery or when we have the right to invoice, generally at the close of the exhibition, conference, or corporate event. Payment terms are generally within 30-60 days and contain no significant financing components. Pursuit’s performance obligations are short-term in nature. They include the provision of a hotel room, an attraction admission, a chartered or ticketed bus or van ride, the fulfillment of travel planning itineraries, and/or the sale of food, beverage, or retail products. Revenue is recognized when the service has been provided or the product has been delivered. When credit is extended, payment terms are generally within 30 days and contain no significant financing components. Contract Liabilities Customer deposits are typically received by GES and Pursuit prior to transferring the related product or service to the customer. These deposits are recorded as a contract liability and recognized as revenue upon satisfaction of the related contract performance obligation(s). GES also provides customer rebates and volume discounts to certain event organizers that are recorded as contract liabilities and are recognized as a reduction of revenue. These amounts are included in the Condensed Consolidated Balance Sheets under the caption “Contract liabilities.” Changes to contract liabilities are as follows: (in thousands) Balance at January 1, 2018 $ 31,981 Cash additions 87,716 Revenue recognized (68,676 ) Foreign exchange translation adjustment (602 ) Balance at June 30, 2018 $ 50,419 Contract Costs GES capitalizes certain incremental costs incurred in obtaining and fulfilling contracts. Capitalized costs principally relate to direct costs of materials and services incurred in fulfilling services of future exhibitions, conferences, and events, and also include up-front incentives and commissions incurred upon contract signing. Costs associated with preliminary contract activities (i.e. proposal activities) are expensed as incurred. Capitalized contract costs are expensed upon the transfer of the related goods or services and are included in cost of services or cost of products sold, as applicable. The deferred incremental costs of obtaining and fulfilling contracts are included in the Condensed Consolidated Balance Sheets under the captions “Current contract costs” and “Other investments and assets.” These amounts were previously reported in inventories under “Work in process.” We elected to apply the following practical expedients related to performance obligations: Not to disclose the amount of consideration allocated to the remaining performance obligations or an explanation of when we expect to recognize that amount as revenue as of December 31, 2017 and not to disclose the value of unsatisfied performance obligations for contracts with an original duration of one year or less because the vast majority of our contract liabilities relate to future exhibitions and events that will occur within the next 12 months. Changes to contract costs are as follows: (in thousands) Balance at January 1, 2018 $ 16,878 Additions 32,720 Expenses (22,514 ) Foreign exchange translation adjustment (412 ) Balance at June 30, 2018 $ 26,672 As of June 30, 2018, capitalized contract costs consisted of $1.8 million to obtain contracts and $24.9 million to fulfill contracts. We did not recognize an impairment loss with respect to capitalized contract costs. Disaggregation of Revenue The following tables disaggregate GES and Pursuit revenue by major product line, timing of revenue recognition, and markets served: GES Three Months Ended June 30, 2018 (in thousands) GES U.S. GES International Intersegment Eliminations Total Services: Core services $ 193,315 $ 50,257 $ — $ 243,572 Audio-visual 20,741 6,553 — 27,294 Event technology 10,534 2,847 — 13,381 Intersegment eliminations — — (6,346 ) (6,346 ) Total services 224,590 59,657 (6,346 ) 277,901 Products: Core products 16,649 20,772 — 37,421 Total revenue $ 241,239 $ 80,429 $ (6,346 ) $ 315,322 Timing of revenue recognition: Services transferred over time $ 224,590 $ 59,657 $ (6,346 ) $ 277,901 Products transferred over time (1) 10,084 5,710 — 15,794 Products transferred at a point in time 6,565 15,062 — 21,627 Total revenue $ 241,239 $ 80,429 $ (6,346 ) $ 315,322 Markets: Exhibitions $ 125,174 $ 53,368 $ — $ 178,542 Conferences 84,599 17,226 — 101,825 Corporate events 25,810 8,570 — 34,380 Consumer events 5,656 1,265 — 6,921 Intersegment eliminations — — (6,346 ) (6,346 ) Total revenue $ 241,239 $ 80,429 $ (6,346 ) $ 315,322 (1) GES’ graphics product revenue is recognized over time as it is considered a part of the single performance obligation satisfied over time. Six Months Ended June 30, 2018 (in thousands) GES U.S. GES International Intersegment Eliminations Total Services: Core services $ 356,682 $ 96,470 $ — $ 453,152 Audio-visual 37,825 9,721 — 47,546 Event technology 18,569 6,121 — 24,690 Intersegment eliminations — — (9,694 ) (9,694 ) Total services 413,076 112,312 (9,694 ) 515,694 Products: Core products 32,031 35,303 — 67,334 Total revenue $ 445,107 $ 147,615 $ (9,694 ) $ 583,028 Timing of revenue recognition: Services transferred over time $ 413,076 $ 112,312 $ (9,694 ) $ 515,694 Products transferred over time (1) 20,676 9,817 — 30,493 Products transferred at a point in time 11,355 25,486 — 36,841 Total revenue $ 445,107 $ 147,615 $ (9,694 ) $ 583,028 Markets: Exhibitions $ 255,668 $ 108,698 $ — $ 364,366 Conferences 122,415 23,887 — 146,302 Corporate events 55,254 13,430 — 68,684 Consumer events 11,770 1,600 — 13,370 Intersegment eliminations — — (9,694 ) (9,694 ) Total revenue $ 445,107 $ 147,615 $ (9,694 ) $ 583,028 (1) GES’ graphics product revenue is recognized over time as it is considered a part of the single performance obligation satisfied over time. Pursuit Three Months Ended Six Months Ended (in thousands) June 30, 2018 June 30, 2018 Services: Accommodations $ 9,030 $ 10,735 Admissions 23,480 27,059 Transportation 4,321 6,690 Travel planning 491 799 Intersegment eliminations (500 ) (706 ) Total services revenue 36,822 44,577 Products: Food and beverage 6,705 7,924 Retail operations 4,828 5,576 Total products revenue 11,533 13,500 Total revenue $ 48,355 $ 58,077 Timing of revenue recognition: Services transferred over time $ 36,822 $ 44,577 Products transferred at a point in time 11,533 13,500 Total revenue $ 48,355 $ 58,077 Markets: Banff Jasper Collection $ 28,519 $ 35,608 Alaska Collection 10,614 10,827 Glacier Park Collection 6,640 7,266 FlyOver 2,582 4,376 Total revenue $ 48,355 $ 58,077 Balance Sheet Reclassifications In connection with the adoption of Topic 606, we made the following reclassifications to separately present contract costs and contract liabilities on the Condensed Consolidated Balance Sheet as of December 31, 2017: December 31, 2017 (in thousands) As Previously Reported Reclassifications As Adjusted Cash and cash equivalents $ 53,723 — $ 53,723 Accounts receivable, net 104,811 — 104,811 Inventories (1) 30,372 (12,822 ) 17,550 Current contract costs (1) — 13,436 13,436 Other current assets (1) 21,030 (1,289 ) 19,741 Property and equipment, net 305,571 — 305,571 Other investments and assets (1) 47,512 675 48,187 Deferred income taxes 23,548 — 23,548 Goodwill 270,551 — 270,551 Other intangible assets, net 62,781 — 62,781 Total assets $ 919,899 — $ 919,899 Accounts payable $ 77,380 — $ 77,380 Customer deposits (2) 33,415 (33,415 ) — Contract liabilities (2) — 31,981 31,981 Accrued compensation 30,614 — 30,614 Other current liabilities (2) 38,720 1,434 40,154 Debt and capital lease obligations, current and long-term 209,192 — 209,192 Pension and postretirement benefits 28,135 — 28,135 Other deferred items and liabilities 52,858 — 52,858 Total liabilities 470,314 — 470,314 Redeemable noncontrolling interest 6,648 — 6,648 Total stockholders’ equity (3) 442,937 — 442,937 Total liabilities and stockholders’ equity $ 919,899 — $ 919,899 (1) Contract costs primarily consist of deferred core services costs (including labor and vendor purchases) required to service future exhibitions, conferences and other events, and commission expenses incurred to obtain contracts. All such costs were previously included in “Inventories” and in certain other assets. As a result of the changes noted above, deferred core services costs related to exhibitions and events that are scheduled to occur longer than one year in the future are currently included in “Other investments and assets”. The impact of this change reduced total current assets at December 31, 2017 by $0.7 million. The amount of deferred core services costs included in “Other investments and assets” at June 30, 2018 was $5.1 million. (2) In connection with the adoption of Topic 606, we elected to more prominently present contract liabilities on the Consolidated Balance Sheets. Consequently, customer deposits of $33.4 million as of December 31, 2017, have been reclassified to “Contract liabilities” and to other certain current liabilities to conform to the current period presentation. (3) We determined that the cumulative effect of initially applying Topic 606 as an adjustment to the opening balance of retained earnings was not material, and therefore we made no adjustment. |
Share-Based Compensation
Share-Based Compensation | 6 Months Ended |
Jun. 30, 2018 | |
Disclosure Of Compensation Related Costs Sharebased Payments [Abstract] | |
Share-Based Compensation | Note 3. Share-Based Compensation The following table summarizes share-based compensation expense: Three Months Ended Six Months Ended June 30, June 30, (in thousands) 2018 2017 2018 2017 Performance unit incentive plan (“PUP”) $ 1,324 $ 1,927 $ 1,518 $ 3,243 Restricted stock 667 774 1,170 1,397 Restricted stock units 54 47 74 107 Share-based compensation before income tax benefit 2,045 2,748 2,762 4,747 Income tax benefit (515 ) (1,028 ) (696 ) (1,772 ) Share-based compensation, net of income tax benefit $ 1,530 $ 1,720 $ 2,066 $ 2,975 We did not record any share-based compensation expense through restructuring expense during the three and six months ended June 30, 2018 or 2017. The following table summarizes the activity of the outstanding share-based compensation awards: PUP Awards Restricted Stock Restricted Stock Units Shares Weighted-Average Grant Date Fair Value Shares Weighted-Average Grant Date Fair Value Shares Weighted-Average Grant Date Fair Value Balance at December 31, 2017 239,338 $ 32.80 206,899 $ 33.16 12,750 $ 30.94 Granted 76,925 $ 52.03 47,157 $ 51.93 3,669 $ 52.28 Vested (75,761 ) $ 27.29 (62,684 ) $ 27.28 (4,300 ) $ 27.35 Forfeited — $ — (2,306 ) $ 39.84 (258 ) $ 37.69 Balance at June 30, 2018 240,502 $ 40.68 189,066 $ 39.71 11,861 $ 38.70 Viad Corp Omnibus Incentive Plan We grant share-based compensation awards to our officers, directors, and certain key employees pursuant to the 2017 Viad Corp Omnibus Incentive Plan (the “2017 Plan”). The 2017 Plan has a 10-year life and provides for the following types of awards: (a) incentive and non-qualified stock options; (b) restricted stock and restricted stock units; (c) performance units or performance shares; (d) stock appreciation rights; (e) cash-based awards; and (f) certain other stock-based awards. In June 2017, we registered 1,750,000 shares of common stock issuable under the 2017 Plan. As of June 30, 2018, there were 1,667,216 shares available for future grant under the 2017 Plan. PUP Awards The vesting of PUP award shares is based upon achievement of certain performance-based criteria. The performance period of the shares is three years. During the six months ended June 30, 2018, we granted PUP awards with a grant date fair value of $4.0 million of which $1.6 million are payable in shares. Liabilities related to PUP awards were $6.0 million as of June 30, 2018 and $11.0 million as of December 31, 2017. In March 2018, PUP awards granted in 2015 vested and we distributed cash payouts of $5.9 million. In March 2017, PUP awards granted in 2014 vested and we distributed cash payouts of $3.7 million. Restricted Stock As of June 30, 2018, the unamortized cost of outstanding restricted stock awards was $3.7 million, which we expect to recognize over a weighted-average period of approximately 1.4 years. We repurchased 19,237 shares for $1.0 million during the six months ended June 30, 2018 and 25,642 shares for $1.2 million during the six months ended June 30, 2017 related to tax withholding requirements on vested share-based awards. Restricted Stock Units Aggregate liabilities related to restricted stock units were $0.3 million as of June 30, 2018 and $0.5 million as of December 31, 2017. In February 2018, the 2015 restricted stock units vested and we distributed $0.2 million in cash payouts. In February 2017, portions of the 2012 and 2014 restricted stock units vested and we distributed $0.3 million in cash payouts. Stock Options The following table summarizes stock option activity: Shares Weighted-Average Exercise Price Options outstanding and exercisable at December 31, 2017 63,773 $ 16.62 Exercised (5,084 ) $ 16.62 Options outstanding and exercisable at June 30, 2018 58,689 $ 16.62 |
Acquisition of Business
Acquisition of Business | 6 Months Ended |
Jun. 30, 2018 | |
Business Combinations [Abstract] | |
Acquisition of Business | Note 4. Acquisition of Business Esja On November 3, 2017, we acquired the controlling interest (54.5% of the common stock) in Esja, a private corporation in Reykjavik, Iceland. Esja is developing and will operate a new FlyOver Iceland attraction, which is expected to open in 2019. The purchase price was €8.2 million (approximately $9.5 million) in cash, and the shareholders agreement includes a put option that gives the minority Esja shareholders the right to sell (or “put”) their Esja shares to us based on a calculated formula within a predefined term. The noncontrolling interest’s carrying value is determined by the fair value of the noncontrolling interest as of the acquisition date, the noncontrolling interest’s share of the subsequent net income or loss, and the accretion of the redemption value of the put option. As of the transaction date, the fair value of the noncontrolling interest was estimated to be $6.7 million. The fair value of the noncontrolling interest was finalized as of March 31, 2018 with no adjustments. Refer to Note 20 – Redeemable Noncontrolling Interest for additional information. Under the acquisition method of accounting, the purchase price is allocated to the assets acquired and liabilities assumed based on their estimated fair values. The excess purchase price over fair value of net assets acquired is recorded as goodwill. Goodwill is included in the Pursuit business group and the primary factor that contributed to the purchase price resulting in the recognition of goodwill relates to future expected income from operations after opening in 2019. Goodwill is deductible for tax purposes. Transaction costs associated with the Esja acquisition were $0.1 million in 2018 and 2017, which are included in corporate activities in the Condensed Consolidated Statements of Operations. The Esja results of operations have been included in the condensed consolidated financial statements from the date of acquisition. Esja had operating losses, representing start-up costs, of $0.2 million during the three months ended June 30, 2018 and $0.4 million during the six months ended June 30, 2018. |
Inventories
Inventories | 6 Months Ended |
Jun. 30, 2018 | |
Inventory Disclosure [Abstract] | |
Inventories | Note 5. Inventories The components of inventories consisted of the following: June 30, December 31, (in thousands) 2018 2017 Raw materials $ 20,361 $ 17,550 Work in process (1) — — Inventories $ 20,361 $ 17,550 (1) Upon the adoption of Topic 606, the deferred incremental costs of obtaining and fulfilling contracts that were previously reported in Inventories under “Work in process” are currently reported under “Current contract costs” and “Other investments and assets.” Refer to Note 2 – |
Other Current Assets
Other Current Assets | 6 Months Ended |
Jun. 30, 2018 | |
Deferred Costs Capitalized Prepaid And Other Assets Disclosure [Abstract] | |
Other Current Assets | Note 6. Other Current Assets Other current assets consisted of the following: June 30, December 31, (in thousands) 2018 2017 Income tax receivable $ 14,138 $ 4,237 Prepaid vendor payments 5,903 5,048 Prepaid software maintenance 4,828 3,386 Prepaid taxes 959 912 Prepaid insurance 845 2,610 Prepaid rent 793 730 Prepaid other 3,510 2,172 Other 191 646 Other current assets $ 31,167 $ 19,741 |
Property and Equipment
Property and Equipment | 6 Months Ended |
Jun. 30, 2018 | |
Property Plant And Equipment [Abstract] | |
Property and Equipment | Note 7. Property and Equipment Property and equipment consisted of the following: June 30, December 31, (in thousands) 2018 2017 Land and land interests $ 32,197 $ 32,544 Buildings and leasehold improvements 243,622 222,118 Equipment and other 364,480 351,676 Gross property and equipment 640,299 606,338 Accumulated depreciation (315,348 ) (300,767 ) Property and equipment, net $ 324,951 $ 305,571 Depreciation expense was $12.3 million for the three months ended June 30, 2018 and $22.6 million for the six months ended June 30, 2018. Depreciation expense was $11.3 million for the three months ended June 30, 2017 and $20.4 million for six months ended June 30, 2017. Property and equipment acquired under capital leases increased $2.1 million during the six months ended June 30, 2018 and $0.8 million during the six months ended June 30, 2017. Property and equipment purchased through accounts payable and accrued liabilities increased $0.1 million during the six months ended June 30, 2018 and $2.0 million for the six months ended June 30, 2017. |
Other Investments and Assets
Other Investments and Assets | 6 Months Ended |
Jun. 30, 2018 | |
Investments All Other Investments [Abstract] | |
Other Investments and Assets | Note 8. Other Investments and Assets Other investments and assets consisted of the following: June 30, December 31, (in thousands) 2018 2017 Cash surrender value of life insurance $ 24,116 $ 23,947 Self-insured liability receivable 10,442 10,442 Contract costs (1) 5,147 3,442 Workers’ compensation insurance security deposits 3,550 3,550 Other mutual funds 2,838 2,637 Other 3,487 4,169 Other investments and assets $ 49,580 $ 48,187 (1) Upon the adoption of Topic 606, the deferred incremental costs of obtaining and fulfilling contracts that were previously reported in Inventories under “Work in process” are currently reported under “Current contract costs” and “Other investments and assets.” Refer to Note 2 – |
Goodwill and Other Intangible A
Goodwill and Other Intangible Assets | 6 Months Ended |
Jun. 30, 2018 | |
Goodwill And Intangible Assets Disclosure [Abstract] | |
Goodwill and Other Intangible Assets | Note 9. Goodwill and Other Intangible Assets The changes in the carrying amount of goodwill are as follows: (in thousands) GES U.S. GES International Pursuit Total Balance at December 31, 2017 $ 148,277 $ 38,840 $ 83,434 $ 270,551 Foreign currency translation adjustments — (1,038 ) (3,490 ) (4,528 ) Balance at June 30, 2018 $ 148,277 $ 37,802 $ 79,944 $ 266,023 Other intangible assets consisted of the following: June 30, 2018 December 31, 2017 (in thousands) Gross Carrying Value Accumulated Amortization Net Carrying Value Gross Carrying Value Accumulated Amortization Net Carrying Value Amortized intangible assets: Customer contracts and relationships $ 68,454 $ (27,708 ) $ 40,746 $ 68,798 $ (23,696 ) $ 45,102 Operating contracts and licenses 9,530 (1,207 ) 8,323 9,951 (1,094 ) 8,857 Tradenames 8,553 (3,343 ) 5,210 8,633 (2,873 ) 5,760 Non-compete agreements 5,298 (3,573 ) 1,725 5,363 (3,007 ) 2,356 Other 1,678 (745 ) 933 896 (650 ) 246 Total amortized intangible assets 93,513 (36,576 ) 56,937 93,641 (31,320 ) 62,321 Unamortized intangible assets: Business licenses 460 — 460 460 — 460 Other intangible assets $ 93,973 $ (36,576 ) $ 57,397 $ 94,101 $ (31,320 ) $ 62,781 Intangible asset amortization expense was $2.9 million for the three months ended June 30, 2018 and $5.5 million for the six months ended June 30, 2018. Intangible asset amortization expense was $3.3 million for the three months ended June 30, 2017 and $6.3 million for the six months ended June 30, 2017. The weighted-average amortization period of: customer contracts and relationships is approximately 8.1 years, operating contracts and licenses is approximately 25.9 years, tradenames is approximately 6.6 years, non-compete agreements is approximately 1.8 years, and other amortizable intangible assets is approximately 8.2 years. The estimated future amortization expense related to amortized intangible assets held at June 30, 2018 is as follows: (in thousands) Year ending December 31, Remainder of 2018 $ 5,527 2019 9,951 2020 8,455 2021 7,465 2022 5,932 Thereafter 19,607 Total $ 56,937 |
Other Current Liabilities
Other Current Liabilities | 6 Months Ended |
Jun. 30, 2018 | |
Other Liabilities Current [Abstract] | |
Other Current Liabilities | Note 10. Other Current Liabilities Other current liabilities consisted of the following: June 30, December 31, (in thousands) 2018 2017 Continuing operations: Accommodation services deposits (1) $ 10,358 $ 2,540 Self-insured liability 6,255 6,208 Commissions payable 4,634 3,235 Accrued sales and use taxes 4,576 2,431 Accrued employee benefit costs 3,979 2,915 Accrued income tax payable 3,135 7,518 Accrued dividends 2,097 2,094 Current portion of pension and postretirement liabilities 1,921 2,109 Deferred rent 1,601 1,679 Accrued professional fees 662 1,020 Accrued restructuring 528 722 Accrued rebates (2) — — Other taxes 2,908 2,750 Other 3,851 3,852 Total continuing operations 46,505 39,073 Discontinued operations: Environmental remediation liabilities 720 648 Self-insured liability 401 337 Other 85 96 Total discontinued operations 1,206 1,081 Total other current liabilities $ 47,711 $ 40,154 (1) With the adoption of Topic 606, we present customer deposits as “Contract liabilities” as they are received prior to transferring the related product or service to the customer. We recognize revenue upon satisfaction of the related contract performance obligation(s). We reclassified $2.5 million of GES’ events accommodation services deposits out of “Contract liabilities” to “Other current liabilities” on the December 31, 2017 Condensed Consolidated Balance Sheet as they do not represent “Contract liabilities” but rather deposits from hotel guests that are passed on to the hotels. Refer to Note 2 – Revenue and Related Contract Costs and Contract Liabilities for additional information. (2) With the adoption of Topic 606, we reclassified $1.1 million of accrued rebates to “Contract liabilities” on the December 31, 2017 Condensed Consolidated Balance Sheet as they represent future performance obligations. Refer to Note 2 – |
Other Deferred Items and Liabil
Other Deferred Items and Liabilities | 6 Months Ended |
Jun. 30, 2018 | |
Other Liabilities Disclosure [Abstract] | |
Other Deferred Items and Liabilities | Note 11. Other Deferred Items and Liabilities Other deferred items and liabilities consisted of the following: June 30, December 31, (in thousands) 2018 2017 Continuing operations: Self-insured liability $ 13,130 $ 12,918 Self-insured excess liability 10,442 10,442 Foreign deferred tax liability 8,590 8,267 Accrued compensation 6,237 9,740 Deferred rent 3,654 3,855 Accrued restructuring 1,790 1,827 Other 1,303 1,305 Total continuing operations 45,146 48,354 Discontinued operations: Self-insured liability 2,358 2,557 Environmental remediation liabilities 1,616 1,728 Other 237 219 Total discontinued operations 4,211 4,504 Total other deferred items and liabilities $ 49,357 $ 52,858 |
Debt and Capital Lease Obligati
Debt and Capital Lease Obligations | 6 Months Ended |
Jun. 30, 2018 | |
Debt Disclosure [Abstract] | |
Debt and Capital Lease Obligations | Note 12. Debt and Capital Lease Obligations The components of long-term debt and capital lease obligations consisted of the following: June 30, December 31, (in thousands, except interest rates) 2018 2017 Revolving credit facility and term loan 3.6% weighted-average interest rate at June 30, 2018 and 3.1% at December 31, 2017, due through 2019 (1) $ 216,751 $ 207,322 Brewster Inc. revolving credit facility 3.1% weighted-average interest rate at June 30, 2018 (1) 19,487 — Less unamortized debt issuance costs (717 ) (984 ) Total debt 235,521 206,338 Capital lease obligations 4.2% weighted-average interest rate at June 30, 2018 and 3.8% at December 31, 2017, due through 2021 3,957 2,854 Total debt and capital lease obligations 239,478 209,192 Current portion (2) (190,967 ) (152,599 ) Long-term debt and capital lease obligations $ 48,511 $ 56,593 (1) Represents the weighted-average interest rate in effect at the respective periods for the revolving credit facilities and term loan borrowings, including any applicable margin. The interest rates do not include amortization of debt issuance costs or commitment fees. (2) Borrowings under the revolving credit facilities are classified as current because all borrowed amounts are due within one year. Effective December 22, 2014, we entered into a $300 million Amended and Restated Credit Agreement (the “Credit Agreement”). The Credit Agreement provides for a senior credit facility in the aggregate amount of $300 million, which consists of a $175 million revolving credit facility (the “Revolving Credit Facility”) and a $125 million term loan (the “Term Loan”). The Credit Agreement has a maturity date of December 22, 2019. Proceeds from the loans made under the Credit Agreement were used to refinance certain of our outstanding debt and will be used for general corporate purposes in the ordinary course of business. Under the Credit Agreement, either or both of the Revolving Credit Facility and the Term Loan may be increased up to an additional $100 million under certain circumstances. If such circumstances are met, we may obtain the additional borrowings under the Revolving Credit Facility, the Term Loan, or a combination of the two. The Revolving Credit Facility has a $40 million sublimit for letters of credit. Borrowings and letters of credit can be denominated in U.S. dollars, Euros, Canadian dollars, or British pounds. Our lenders under the Credit Agreement have a first perfected security interest in all of our personal property including GES, GES Event Intelligence Services, Inc., CATC Alaska Tourism Corporation ON Event Services, LLC (“ON Services”) Effective February 24, 2016, we executed an amendment (“Amendment No. 1”) to the Credit Agreement. Amendment No. 1 modified the terms of the financial covenants and the negative covenants related to acquisitions, restricted payments, and indebtedness. The overall maximum leverage ratio and minimum fixed charge coverage ratio are 3.50 to 1.00 and 1.75 to 1.00, respectively, and will remain at those levels for the entire remaining term of the Credit Agreement. Acquisitions in substantially the same or related lines of business are permitted under Amendment No. 1, as long as the pro forma leverage ratio is less than or equal to 3.00 to 1.00. We can make dividends, distributions, and repurchases of our common stock up to $20 million per calendar year. Stock dividends, distributions, and repurchases above the $20 million limit are not subject to a liquidity covenant, and are permitted as long as our pro forma leverage ratio is less than or equal to 2.50 to 1.00 and no default or unmatured default, as defined in the Credit Agreement, exists. Unsecured debt is allowed as long as our pro forma leverage ratio is less than or equal to 3.00 to 1.00. Significant other covenants under the Credit Agreement that were not affected by Amendment No. 1 include limitations on investments, sales/leases of assets, consolidations or mergers, and liens on property. As of June 30, 2018, the fixed charge coverage ratio was 2.63 to 1.00, the leverage ratio was 1.99 to 1.00, and we were in compliance with all covenants under the Credit Agreement. Effective December 28, 2016, Brewster Inc., part of Pursuit, entered into a credit agreement (the “Brewster Credit Agreement”) with a $38 million revolving credit facility (the “Brewster Revolver”). The Brewster Credit Agreement was used in connection with the FlyOver Canada acquisition in December 2016. Effective December 6, 2017, we amended the Brewster Revolver to reduce the amount to $20 million and extend the maturity date to December 28, 2018. Effective May 18, 2018, we executed a second amendment to the Brewster Revolver to increase the amount to $30 million. The additional loan capacity will be used for potential future acquisitions in Canada and other general corporate purposes. The lender under the Brewster Revolver has a first perfected security interest in all of Brewster Inc.’s personal property and a guaranty from Brewster Inc.’s immediate parent, Brewster Travel Canada Inc. (secured by its present and future personal property), Viad, and all of its current or future subsidiaries that are required to be guarantors under Viad’s Credit Agreement. The fees on the unused portion of the Brewster Revolver are currently 0.25% annually. As of June 30, 2018, our total debt and capital lease obligations were $239.5 million, consisting of outstanding borrowings under the Term Loan of $65.6 million, the Revolving Credit Facility of $151.1 million, the Brewster Revolver of $19.5 million, and capital lease obligations of $4.0 million, offset in part by unamortized debt issuance costs of $0.7 million. As of June 30, 2018, capacity remaining under the Revolving Credit Facility was $22.6 million, reflecting borrowings of $151.1 million and $1.3 million in outstanding letters of credit. As of June 30, 2018, Brewster Inc. had $10.5 million of capacity remaining under the Brewster Revolver. Borrowings under the Revolving Credit Facility (of which GES, GES Event Intelligence Services, Inc., CATC, and ON Services are guarantors) are indexed to the prime rate or the London Interbank Offered Rate, plus appropriate spreads tied to our leverage ratio. Commitment fees and letters of credit fees are also tied to our leverage ratio. The fees on the unused portion of the Revolving Credit Facility are currently 0.35% annually. The estimated fair value of total debt was $233.5 million as of June 30, 2018 and $203.2 million as of December 31, 2017. The fair value of debt was estimated by discounting the future cash flows using rates currently available for debt of similar terms and maturity, which is a Level 2 measurement. Refer to Note 13 – Fair Value Measurements. Cash paid for interest on debt was $4.1 million for the six months ended June 30, 2018 and $3.6 million for the six months ended June 30, 2017. |
Fair Value Measurements
Fair Value Measurements | 6 Months Ended |
Jun. 30, 2018 | |
Fair Value Disclosures [Abstract] | |
Fair Value Measurements | Note 13. Fair Value Measurements The fair value of an asset or liability is defined as the price that would be received to sell an asset or paid to transfer a liability in an orderly transaction between market participants at the measurement date. The fair value guidance requires an entity to maximize the use of quoted prices and other observable inputs and minimize the use of unobservable inputs when measuring fair value, and also establishes a fair value hierarchy, which prioritizes the inputs to valuation techniques used to measure fair value as follows: Level 1 - Quoted prices in active markets for identical assets or liabilities. Level 2 - Observable inputs other than quoted prices included within Level 1 that are observable for the asset or liability, either directly or indirectly. Level 3 - Unobservable inputs to the valuation methodology that are significant to the measurement of fair value. Money market mutual funds and certain other mutual fund investments are measured at fair value on a recurring basis using Level 1 inputs. The fair value information related to these assets is summarized in the following tables: Fair Value Measurements at Reporting Date Using (in thousands) June 30, 2018 Quoted Prices in Active Markets (Level 1) Significant Other Observable Inputs (Level 2) Significant Unobservable Inputs (Level 3) Assets: Money market funds (1) $ 120 $ 120 $ — $ — Other mutual funds (2) 2,838 2,838 — — Total assets at fair value on a recurring basis $ 2,958 $ 2,958 $ — $ — Fair Value Measurements at Reporting Date Using (in thousands) December 31, 2017 Quoted Prices in Active Markets (Level 1) Significant Other Observable Inputs (Level 2) Significant Unobservable Inputs (Level 3) Assets: Money market funds (1) $ 119 $ 119 $ — $ — Other mutual funds (2) 2,637 2,637 — — Total assets at fair value on a recurring basis $ 2,756 $ 2,756 $ — $ — (1) Money market funds are included in “Cash and cash equivalents” in the Condensed Consolidated Balance Sheets. These investments are classified as available-for-sale and are recorded at fair value. There have been no realized gains or losses related to these investments and we have not experienced any redemption restrictions with respect to any of the money market mutual funds. (2) Other mutual funds are included in “Other investments and assets” in the Condensed Consolidated Balance Sheets. Upon the adoption of ASU 2016-01, unrealized gains on equity securities that were previously classified as available-for-sale are recognized in net income rather than “Accumulated other comprehensive income” (“AOCI”). We adopted this guidance prospectively on January 1, 2018 and recognized a cumulative-effect adjustment of $0.6 million to beginning retained earnings, which represents unrealized gains of $1.0 million ($0.6 million after tax) as of December 31, 2017 that were included in AOCI in the Condensed Consolidated Balance Sheets. Refer to Note 14 – Stockholders’ Equity for additional information. The carrying values of cash and cash equivalents, receivables, and accounts payable approximate fair value due to the short-term maturities of these instruments. Refer to Note 12 – |
Stockholders' Equity
Stockholders' Equity | 6 Months Ended |
Jun. 30, 2018 | |
Equity [Abstract] | |
Stockholders' Equity | Note 14. Stockholders’ Equity The following represents a reconciliation of the carrying amounts of stockholders’ equity attributable to Viad and the non-redeemable noncontrolling interest for the six months ended June 30, 2018 and 2017: (in thousands) Total Viad Stockholders’ Equity Non-redeemable Noncontrolling Interest Total Stockholders’ Equity Balance at December 31, 2017 $ 429,131 $ 13,806 $ 442,937 Net income (loss) 14,103 (397 ) 13,706 Dividends on common stock ($0.20 per share) (4,095 ) — (4,095 ) Common stock purchased for treasury (10,085 ) — (10,085 ) Employee benefit plans 4,211 — 4,211 Unrealized foreign currency translation adjustment (11,204 ) — (11,204 ) Other changes to AOCI 669 — 669 Other 42 — 42 Balance at June 30, 2018 $ 422,772 $ 13,409 $ 436,181 (in thousands) Total Viad Stockholders’ Equity Non-redeemable Noncontrolling Interest Total Stockholders’ Equity Balance at December 31, 2016 $ 357,355 $ 13,283 $ 370,638 Net income (loss) 34,724 (337 ) 34,387 Dividends on common stock ($0.20 per share) (4,077 ) — (4,077 ) Common stock purchased for treasury (1,204 ) — (1,204 ) Employee benefit plans 3,982 — 3,982 Unrealized foreign currency translation adjustment 9,705 — 9,705 Other changes to AOCI 243 — 243 Other 47 — 47 Balance at June 30, 2017 $ 400,775 $ 12,946 $ 413,721 Changes in AOCI by component are as follows: (in thousands) Unrealized Gains on Investments Cumulative Foreign Currency Translation Adjustments Unrecognized Net Actuarial Loss and Prior Service Credit, Net Accumulated Other Comprehensive Income (Loss) Balance at December 31, 2017 $ 616 $ (12,026 ) $ (11,158 ) $ (22,568 ) Adoption of ASU 2016-01 (1) (616 ) — — (616 ) Other comprehensive income before reclassifications — (11,204 ) — (11,204 ) Amounts reclassified from AOCI, net of tax — — 669 669 Net other comprehensive income (loss) (616 ) (11,204 ) 669 (11,151 ) Balance at June 30, 2018 $ — $ (23,230 ) $ (10,489 ) $ (33,719 ) (1) Upon the adoption of ASU 2016-01, we recorded a cumulative-effect adjustment from unrealized gains on investments to beginning retained earnings. Amounts reclassified that relate to our defined benefit pension and postretirement plans include the amortization of prior service costs and actuarial net losses recognized during the six months ended June 30, 2018 and 2017. These costs are recorded as components of net periodic cost for each period presented. Refer to Note 17 – Pension and Postretirement Benefits for additional information. Amounts reclassified that relate to unrealized gains on equity securities classified as available-for-sale include $1.0 million ($0.6 million after tax) as of December 31, 2017. Upon the adoption of ASU 2016-01, unrealized gains on equity securities are recognized in net income. Refer to Note 13 – Fair Value Measurements for additional information. Noncontrolling interests with redemption features that are not solely within our control are considered redeemable noncontrolling interests. Redeemable noncontrolling interest is considered temporary equity and we report it between liabilities and stockholders’ equity in the Condensed Consolidated Balance Sheets. Refer to Note 20 – Redeemable Noncontrolling Interest for additional information. |
Income Per Share
Income Per Share | 6 Months Ended |
Jun. 30, 2018 | |
Earnings Per Share [Abstract] | |
Income Per Share | Note 15. Income Per Share The components of basic and diluted income per share are as follows: Three Months Ended Six Months Ended June 30, June 30, (in thousands, except per share data) 2018 2017 2018 2017 Net income attributable to Viad (diluted) $ 23,490 $ 27,947 $ 14,103 $ 34,724 Less: Allocation to non-vested shares (222 ) (345 ) (139 ) (442 ) Adjustment to the redemption value of redeemable noncontrolling interest (52 ) — (90 ) — Net income allocated to Viad common stockholders (basic) $ 23,216 $ 27,602 $ 13,874 $ 34,282 Basic weighted-average outstanding common shares 20,209 20,140 20,208 20,112 Additional dilutive shares related to share-based compensation 227 224 238 243 Diluted weighted-average outstanding shares 20,436 20,364 20,446 20,355 Income per share: Basic income attributable to Viad common stockholders $ 1.15 $ 1.37 $ 0.69 $ 1.70 Diluted income attributable to Viad common stockholders (1) $ 1.15 $ 1.37 $ 0.69 $ 1.70 (1) Diluted income (loss) per share amount cannot exceed basic income (loss) per share. |
Income Taxes
Income Taxes | 6 Months Ended |
Jun. 30, 2018 | |
Income Tax Disclosure [Abstract] | |
Income Taxes | Note 16. Income Taxes The effective tax rate was 27.8% for the three months ended June 30, 2018 and 27.1% for the three months ended June 30, 2017. The effective tax rate was 25.8% for the six months ended June 30, 2018 and 27.1% for the six months ended June 30, 2017. The income tax provision was computed based on our estimated effective tax rate and forecasted income by jurisdiction expected for the full year, including the impact of any unusual, infrequent, or non-recurring items. The effective tax rate for the six months ended June 30, 2018 was more than the federal statutory rate of 21% primarily due to foreign income taxed at higher rates, the impact of U.S. tax reform, specifically certain non-deductible business expenses, and the increase in the effective state tax rate. The effective tax rate for the six months ended June 30, 2017 was less than the federal statutory rate of 35% primarily due to the excess tax benefit on share-based compensation and the release of a valuation allowance. We revised our current year estimate of the global intangible low-taxed income (“GILTI”) tax based on additional research and interpretation of the Tax Act and we have determined that the GILTI tax will be fully offset by foreign tax credits generated, resulting in a reduction of the annualized effective tax rate from the prior quarter. During the three months ended June 30, 2018, we recorded a tax benefit of $0.1 million to the provisional estimate for the reduction in the corporate tax rate applied to the deferred tax assets included in the financial statements as of December 31, 2017 for the impact of the Tax Act. We expect to complete the analysis of the deemed mandatory repatriation tax and record any adjustments within the one year period provided under SEC Staff Accounting Bulletin 118. Cash paid for income taxes was $16.8 million for the six months ended June 30, 2018 and $7.1 million for the six months ended June 30, 2017. |
Pension and Postretirement Bene
Pension and Postretirement Benefits | 6 Months Ended |
Jun. 30, 2018 | |
Compensation And Retirement Disclosure [Abstract] | |
Pension and Postretirement Benefits | Note 17. Pension and Postretirement Benefits The components of net periodic benefit cost of our pension and postretirement benefit plans for the three months ended June 30, 2018 and 2017 consist of the following: Domestic Plans Pension Plans Postretirement Benefit Plans Foreign Pension Plans (in thousands) 2018 2017 2018 2017 2018 2017 Service cost $ 33 $ 39 $ 32 $ 17 $ 138 $ 128 Interest cost 200 178 114 93 91 113 Expected return on plan assets (45 ) (68 ) — — (126 ) (146 ) Amortization of prior service credit — — (19 ) (105 ) — — Recognized net actuarial loss 124 94 65 20 39 45 Net periodic benefit cost $ 312 $ 243 $ 192 $ 25 $ 142 $ 140 The components of net periodic benefit cost of our pension and postretirement benefit plans for the six months ended June 30, 2018 and 2017 consist of the following: Domestic Plans Pension Plans Postretirement Benefit Plans Foreign Pension Plans (in thousands) 2018 2017 2018 2017 2018 2017 Service cost $ 35 $ 48 $ 56 $ 47 $ 280 $ 258 Interest cost 387 407 208 219 183 226 Expected return on plan assets (80 ) (107 ) — — (256 ) (294 ) Amortization of prior service credit — — (103 ) (216 ) — — Recognized net actuarial loss 246 230 117 120 80 89 Net periodic benefit cost $ 588 $ 578 $ 278 $ 170 $ 287 $ 279 We expect to contribute $1.0 million to our funded pension plans, $1.0 million to our unfunded pension plans, and $1.1 million to our postretirement benefit plans in 2018. During the six months ended June 30, 2018, we contributed $0.5 million to our funded pension plans, $0.4 million to our unfunded pension plans, and $0.6 million to our postretirement benefit plans. |
Restructuring Charges
Restructuring Charges | 6 Months Ended |
Jun. 30, 2018 | |
Restructuring And Related Activities [Abstract] | |
Restructuring Charges | Note 18. Restructuring Charges GES We have taken certain restructuring actions designed to reduce our cost structure primarily within GES. We implemented a strategic reorganization plan in order to consolidate the separate business units within GES U.S. We also consolidated facilities and streamlined our operations in the U.S., Canada, and the United Kingdom. As a result, we recorded restructuring charges primarily consisting of severance and related benefits as a result of workforce reductions and charges related to the consolidation and downsizing of facilities representing the remaining operating lease obligations (net of estimated sublease income) and related costs. Other Restructurings We recorded restructuring charges in connection with certain reorganization activities within Pursuit. These charges primarily consist of severance and related benefits due to headcount reductions. Changes to the restructuring liability by major restructuring activity are as follows: GES Other Restructurings (in thousands) Severance & Employee Benefits Facilities Severance & Employee Benefits Total Balance at December 31, 2017 $ 1,551 $ 807 $ 191 $ 2,549 Restructuring charges 694 — 130 824 Cash payments (694 ) (38 ) (295 ) (1,027 ) Adjustment to liability 437 (451 ) (14 ) (28 ) Balance at June 30, 2018 $ 1,988 $ 318 $ 12 $ 2,318 As of June 30, 2018, we expect to pay the liabilities related to severance and employee benefits by the end of 2020. Additionally, for GES the liability related to future lease payments will be paid over the remaining lease terms. Refer to Note 21 – |
Litigation, Claims, Contingenci
Litigation, Claims, Contingencies and Other | 6 Months Ended |
Jun. 30, 2018 | |
Commitments And Contingencies Disclosure [Abstract] | |
Litigation, Claims, Contingencies and Other | Note 19. Litigation, Claims, Contingencies, and Other We are plaintiffs or defendants to various actions, proceedings, and pending claims, some of which involve, or may involve, compensatory, punitive, or other damages. Litigation is subject to many uncertainties and it is possible that some of the legal actions, proceedings, or claims could be decided against us. Although the amount of liability as of June 30, 2018 with respect to these matters is not ascertainable, we believe that any resulting liability, after taking into consideration amounts already provided for and insurance coverage, will not have a material effect on our business, financial position, or results of operations. We are subject to various U.S. federal, state, and foreign laws and regulations governing the prevention of pollution and the protection of the environment in the jurisdictions in which we have or had operations. If we fail to comply with these environmental laws and regulations, civil and criminal penalties could be imposed and we could become subject to regulatory enforcement actions in the form of injunctions and cease and desist orders. As is the case with many companies, we also face exposure to actual or potential claims and lawsuits involving environmental matters relating to our past operations. As of June 30, 2018, we had recorded environmental remediation liabilities of $2.3 million related to previously sold operations. Although we are a party to certain environmental disputes, we believe that any resulting liabilities, after taking into consideration amounts already provided for and insurance coverage, will not have a material effect on our financial position or results of operations. As of June 30, 2018, on behalf of our subsidiaries, we had certain obligations under guarantees to third parties. These guarantees are not subject to liability recognition in the condensed consolidated financial statements and relate to leased facilities entered into by our subsidiary operations. We would generally be required to make payments to the respective third parties under these guarantees in the event that the related subsidiary could not meet its own payment obligations. The maximum potential amount of future payments that we would be required to make under all guarantees existing as of June 30, 2018 would be $17.7 million. These guarantees relate to our leased facilities through October 2027. There are no recourse provisions that would enable us to recover from third parties any payments made under the guarantees. Furthermore, there are no collateral or similar arrangements whereby we could recover payments. A significant number of our employees are unionized and we are a party to approximately 100 collective-bargaining agreements, with approximately one-third requiring renegotiation each year. If we are unable to reach an agreement with a union during the collective-bargaining process, the union may call for a strike or work stoppage, which may, under certain circumstances, adversely impact our business and results of operations. We believe that relations with our employees are satisfactory and that collective-bargaining agreements expiring in 2018 will be renegotiated in the ordinary course of business without having a material adverse effect on our operations. We entered into showsite and warehouse agreements with the Chicago Teamsters Local 727, effective January 1, 2014, and those agreements contain provisions that allow the parties to re-open negotiation of the agreements on pension-related issues. We are in informal discussions regarding those issues with all relevant parties to resolve those issues in a manner that will be reasonable and equitable to employees, customers, and shareholders. Although our labor relations are currently stable, disruptions pending the outcome of the Chicago Teamsters Local 727 negotiations could occur, as they could with any collective-bargaining agreement negotiation, with the possibility of an adverse impact on the operating results of GES. Our business contributes to various multi-employer pension plans based on obligations arising under collective-bargaining agreements covering our union-represented employees. Based upon the information available from plan administrators, we believe that several of these multi-employer plans are underfunded. The Pension Protection Act of 2006 requires pension plans underfunded at certain levels to reduce, over defined time periods, the underfunded status. In addition, under current laws, the termination of a plan, or a voluntary withdrawal from a plan by us, or a shrinking contribution base to a plan as a result of the insolvency or withdrawal of other contributing employers to such plan, would require us to make payments to such plan for our proportionate share of the plan’s unfunded vested liabilities. As of June 30, 2018, the amount of additional funding, if any, that we would be required to make related to multi-employer pension plans is not ascertainable. We are self-insured up to certain limits for workers’ compensation, employee health benefits, automobile, product and general liability, and property loss claims. The aggregate amount of insurance liabilities (up to our retention limit) related to our continuing operations was $19.4 million as of June 30, 2018 which includes $14.0 million related to workers’ compensation liabilities, and $5.4 million related to general/auto liability claims. We have also retained and provided for certain insurance liabilities in conjunction with previously sold businesses of $2.8 million as of June 30, 2018, related to workers’ compensation liabilities. The estimated employee health benefit claims incurred but not yet reported was $1.7 million as of June 30, 2018. Provisions for losses for claims incurred, including estimated claims incurred but not yet reported, are made based on our historical experience, claims frequency, and other factors. A change in the assumptions used could result in an adjustment to recorded liabilities. We have purchased insurance for amounts in excess of the self-insured levels, which generally range from $0.2 million to $0.5 million on a per claim basis. We do not maintain a self-insured retention pool fund as claims are paid from current cash resources at the time of settlement. Our net cash payments in connection with these insurance liabilities were $1.2 million for the three months ended June 30, 2018 and $1.2 million for the three months ended June 30, 2017 and $2.7 million for the six months ended June 30, 2018 and $2.5 million for the six months ended June 30, 2017. In addition, as of June 30, 2018, we have recorded insurance liabilities of $10.4 million related to continuing operations, which represents the amount for which we remain the primary obligor after self-insured insurance limits, without taking into consideration the above-referenced insurance coverage. Of this total, $6.9 million related to workers’ compensation liabilities and $3.5 million related to general/auto liability claims which are recorded in other deferred items and liabilities in the Condensed Consolidated Balance Sheets with a corresponding receivable in other investments. |
Redeemable Noncontrolling Inter
Redeemable Noncontrolling Interest | 6 Months Ended |
Jun. 30, 2018 | |
Noncontrolling Interest [Abstract] | |
Redeemable Noncontrolling Interest | Note 20. Redeemable Noncontrolling Interest On November 3, 2017, we acquired the controlling interest (54.5% of the common stock) in Esja, a private corporation in Reykjavik, Iceland, which is developing and will operate a new FlyOver Iceland attraction. The minority Esja shareholders have the right to sell (or “put”) their Esja shares to us based on a multiple of 5.0x EBITDA as calculated on the trailing 12 months from the most recently completed quarter before the put option exercise. The put option is only exercisable after 36 months of business operation (the “Reference Date”) and if the FlyOver Iceland attraction has earned a minimum of €3.25 million in unadjusted EBITDA during the most recent fiscal year and during the trailing 12-month period prior to exercise (the “Put Option Condition”). The put option is exercisable during a period of 12 months following the Reference Date (the “Option Period”) and if the Put Option Condition has been met. If the Put Option Condition has not been met during the first Option Period, the Reference Date will be extended for an additional 12 months up to three times. If after 72 months, the FlyOver Iceland attraction has not achieved the Put Option Condition, the put option expires. If the Put Option Condition is met during any of the Option Periods, yet the shares are not exercised prior to the end of the 12-month Option Period, the put option will expire. The noncontrolling interest’s carrying value is determined by the fair value of the noncontrolling interest as of the acquisition date and the noncontrolling interest’s share of the subsequent net income or loss. This value is benchmarked against the redemption value of the sellers’ put option. The carrying value is adjusted to the redemption value, provided that it does not fall below the initial carrying value, as determined by the purchase price allocation. We have made a policy election to reflect any changes caused by such an adjustment to retained earnings, rather than to current earnings. Changes in the redeemable noncontrolling interest is as follows: (in thousands) Balance at December 31, 2017 $ 6,648 Net loss attributable to redeemable noncontrolling interest (161 ) Adjustment to the redemption value 90 Foreign currency translation adjustment (64 ) Balance at June 30, 2018 $ 6,513 |
Segment Information
Segment Information | 6 Months Ended |
Jun. 30, 2018 | |
Segment Reporting [Abstract] | |
Segment Information | Note 21. Segment Information We measure the profit and performance of our operations on the basis of segment operating income (loss) which excludes restructuring charges and recoveries and impairment charges and recoveries. Intersegment sales are eliminated in consolidation and intersegment transfers are not significant. Corporate activities include expenses not allocated to operations. Depreciation and amortization and share-based compensation expense are the only significant non-cash items for the reportable segments. Our reportable segments, with reconciliations to consolidated totals, are as follows: Three Months Ended Six Months Ended June 30, June 30, (in thousands) 2018 2017 2018 2017 Revenue: GES: U.S. $ 241,239 $ 242,031 $ 445,107 $ 499,242 International 80,429 85,283 147,615 149,182 Intersegment eliminations (6,346 ) (7,205 ) (9,694 ) (10,444 ) Total GES 315,322 320,109 583,028 637,980 Pursuit 48,355 44,665 58,077 52,601 Total revenue $ 363,677 $ 364,774 $ 641,105 $ 690,581 Segment operating income (loss): GES: U.S. $ 20,838 $ 21,320 $ 19,282 $ 42,666 International 8,167 9,349 10,303 11,382 Total GES 29,005 30,669 29,585 54,048 Pursuit 9,757 9,938 (1,638 ) (337 ) Segment operating income 38,762 40,607 27,947 53,711 Corporate eliminations (1) 17 16 33 32 Corporate activities (2,535 ) (2,920 ) (4,752 ) (5,461 ) Operating income 36,244 37,703 23,228 48,282 Interest income 53 42 137 100 Interest expense (2,354 ) (2,059 ) (4,423 ) (4,164 ) Other expense (2) (543 ) (222 ) (781 ) (674 ) Restructuring recoveries (charges): GES U.S. (240 ) (47 ) (240 ) (71 ) GES International (422 ) (121 ) (454 ) (354 ) Pursuit — — (140 ) — Corporate — — 10 (137 ) Impairment recoveries: Pursuit 35 2,247 35 4,631 Income from continuing operations before income taxes $ 32,773 $ 37,543 $ 17,372 $ 47,613 (1) (2) |
Common Stock Repurchases
Common Stock Repurchases | 6 Months Ended |
Jun. 30, 2018 | |
Equity [Abstract] | |
Common Stock Repurchases | Note 22. Common Stock Repurchases We previously announced our Board of Directors’ authorization to repurchase shares of our common stock from time to time at prevailing market prices. During the six months ended June 30, 2018, we repurchased 175,091 shares on the open market for $9.1 million. As of June 30, 2018, 265,449 shares remain available for repurchase. We repurchased 19,237 shares for $1.0 million during the six months ended June 30, 2018 and 25,642 shares for $1.2 million during the six months ended June 30, 2017 related to tax withholding requirements on vested share based awards. |
Overview and Basis of Present29
Overview and Basis of Presentation (Policies) | 6 Months Ended |
Jun. 30, 2018 | |
Organization Consolidation And Presentation Of Financial Statements [Abstract] | |
Nature of Business | Nature of Business We are an international experiential services company with operations principally in the United States, Canada, the United Kingdom, continental Europe, and the United Arab Emirates. We are committed to providing unforgettable experiences to our clients and guests. We operate through three reportable business segments: GES U.S., GES International (collectively, “GES”), and Pursuit. GES GES is a global, full-service provider for live events. GES’ clients include event organizers and corporate brand marketers. Event organizers schedule and run the event from start to finish. Corporate brand marketers include exhibitors and domestic and international corporations that want to promote their brands, services and innovations, feature new products, and build business relationships. GES serves corporate brand marketers when they exhibit at shows and when GES is engaged to manage their global exhibit program or produce their proprietary corporate events. Services and Products Offered GES offers a full suite of services and products for event organizers and corporate brand marketers • Core Services. GES provides official contracting services and products, including the design and production of experiences, material handling, rigging, electrical, and other on-site services. • Audio-Visual. GES offers a variety of high-impact multi-media services and technology, including video and lighting production, digital studio services, entertainment services and talent coordination, projection mapping, and computer rental and support. • Event Technology. GES offers a comprehensive range of event technology services, including event accommodation solutions, registration and data analytics, and event management tools. Markets Served GES provides the above services and products across four live event markets: Exhibitions, Conferences, Corporate Events, and Consumer Events (collectively, “Live Events”). • Exhibitions facilitate business-to-business and business-to-consumer sales and marketing. • Conferences facilitate attendee education and may also include an expo or trade show to further facilitate attendee education and to facilitate business-to-business and business-to-consumer sales and marketing. • Corporate events facilitate attendee education of the sponsoring company’s products or product ecosystem. • Consumer events entertain, educate, or create an experience, typically around a specific genre. Pursuit Pursuit is a collection of iconic natural and cultural destination travel experiences that enjoy perennial demand. Pursuit offers guests distinctive and world renowned experiences through its collection of unique hotels, lodges, recreational attractions, and transportation services Services and Products Offered Pursuit comprises four lines of business: Hospitality, including food and beverage services and retail operations; Attractions, including food and beverage services and retail operations; Transportation; and Travel Planning. Services offered to these lines of business (or a subset of these) include accommodations, admissions, transportation, and travel planning. Products offered include food and beverage and retail. Markets Served Pursuit provides the above services and products across the following geographic markets: • Banff Jasper Collection . The Banff Jasper Collection is a leading travel and tourism provider in the Canadian Rockies in Alberta, Canada with two lodging properties in Banff National Park, one lodging property in Jasper National Park, five world-class recreational attractions, food and beverage services, retail operations, sightseeing and transportation services. • Alaska Collection. The Alaska Collection is a leading travel and tourism provider in Alaska with two lodging properties and a sightseeing excursion in Denali National Park and Preserve, a lodge in Talkeetna, Alaska’s top-rated wildlife and glacier cruise, and two lodging properties located near Kenai Fjords National Park. The Alaska Collection also provides food and beverage services and retail operations. • Glacier Park Collection. The Glacier Park Collection is an operator of seven lodging properties, 12 retail shops, and 11 dining outlets in and around Glacier National Park in Montana, and Waterton Lakes National Park in Alberta, Canada, with a leading share of rooms in that market. • FlyOver: o FlyOver Canada, located in Vancouver, British Columbia, is a recreational attraction that provides a virtual flight ride experience that combines motion seating, spectacular media, and visual effects including wind, scents, and mist to give the unforgettable experience of flying across Canada. o FlyOver Iceland is a recreational attraction under construction in Reykjavik, Iceland that will provide a virtual flight ride experience over some of Iceland’s most spectacular scenery and natural wonders with the same effects as FlyOver Canada. The new attraction is expected to open in 2019. |
Basis of Presentation | Basis of Presentation Viad’s accompanying unaudited condensed consolidated financial statements have been prepared in accordance with accounting principles generally accepted in the United States of America (“GAAP”) and with the instructions to Form 10-Q and Article 10 of Regulation S-X for interim financial information. Accordingly, these financial statements do not include all of the information required by GAAP or SEC rules and regulations for complete financial statements. These financial statements reflect all adjustments (consisting of normal recurring adjustments) necessary for a fair presentation of the results for the interim periods presented. Interim results are not necessarily indicative of the results for the full year. We have recast certain prior period amounts to conform to the current period presentation due to the adoption of new accounting standards. These unaudited condensed consolidated financial statements should be read in conjunction with our Annual Report on Form 10-K for the year ended December 31, 2017, filed with the SEC on February 28, 2018 (“2017 Form 10-K”). The condensed consolidated financial statements include the accounts of Viad and its subsidiaries. We have eliminated all significant intercompany account balances and transactions in consolidation. |
Impact of Recent Accounting Pronouncements | Impact of Recent Accounting Pronouncements The following table provides a brief description of recent accounting pronouncements: Standard Description Date of adoption Effect on the financial statements Standards Not Yet Adopted ASU 2016-02 , Leases (Topic 842) The amendment requires lessees to recognize on their balance sheet a right-of-use asset and a lease liability for leases with lease terms greater than one year. The amendment requires additional disclosures about leasing arrangements, and previously allowed for only a modified retrospective approach to adoption. Subsequent to the issuance of ASU 2016-02, the FASB issued additional updates, which do not change the core principle of the guidance stated in ASU 2016-02. Rather, the updates provide additional (and optional) transition methods including the election under ASU 2018-11, which allows companies to not restate comparative periods when initially applying the transition requirements. Early adoption is permitted. January 1, 2019 We are currently evaluating the potential impact the adoption of this new guidance will have on our financial position or results of operations including analyzing our existing operating leases. We do not expect our Consolidated Statement of Operations to be materially impacted. We expect the most significant impact will relate to facility and equipment leases, which are currently recorded as operating leases. Based on our leases in place on June 30, 2018, we currently anticipate recognizing an additional right-of-use asset and lease liability on the balance sheet in excess of $60 million upon adoption of the standard on January 1, 2019. We expect to adopt ASU 2018-11, which allows companies to use an optional transition method under which a cumulative adjustment to retained earnings during the period of adoption is recorded and prior periods would not require restatement. We are continuing our assessment, which may identify other impacts. ASU 2018-02 , Income Statement—Reporting Comprehensive Income (Topic 220): Reclassification of Certain Tax Effects from Accumulated Other Comprehensive Income The amendment addresses the effect of the Tax Cuts and Jobs Act (the “Tax Act”) on items within accumulated other comprehensive income (“AOCI”). Under current GAAP, the effects of changes in tax rates and laws on deferred tax balances are recorded as a component of income tax expense in the period in which the law was enacted. When deferred tax balances related to items originally recorded in AOCI are adjusted, certain tax effects become stranded in AOCI. This amendment allows a reclassification from AOCI to retained earnings for stranded tax effects. Early adoption is permitted. January 1, 2019 We are currently evaluating the impact of the adoption of this new guidance on our consolidated financial statements and related disclosures. Refer to Note 16 – Income Taxes for additional information. Standard Description Date of adoption Effect on the financial statements Standards Recently Adopted ASU 2014-09 , Revenue from Contracts with Customers (Topic 606) The standard established a new recognition model that requires revenue to be recognized in a manner to depict the transfer of goods or services to a customer at an amount that reflects the consideration expected to be received in exchange for those goods or services. January 1, 2018 We adopted ASU 2014-09 and its related amendments (collectively, “Topic 606”) on January 1, 2018 using the modified retrospective transition method. We determined that the cumulative effect of initially applying the new standard as an adjustment to the opening balance of retained earnings was not material (less than $0.2 million) and, therefore, we made no adjustment. The adoption of this standard did not have a material impact on our consolidated financial statements. The impact primarily related to the deferral of certain commissions which were previously expensed as incurred but are now capitalized and amortized over the period of contract performance, and the deferral of certain costs incurred in connection with trade shows which were previously expensed as incurred but are now capitalized and expensed upon the completion of the show. The new guidance resulted in expanded disclosures and processes to identify performance obligations. See additional transition disclosures immediately following this table and Note 2 – Revenue and Related Contract Costs and Contract Liabilities. ASU 2016-01 , Financial Instruments–Overall: Recognition and Measurement of Financial Assets and Financial Liabilities The amendment includes a requirement for equity investments (except those accounted for under the equity method of accounting or those that result in consolidation of the investee) to be measured at fair value with changes in fair value recognized in net income. January 1, 2018 We adopted this guidance prospectively in the first quarter of 2018 and recorded a cumulative-effect adjustment of $0.6 million to increase beginning retained earnings. ASU 2017-04 , Intangibles - Goodwill and Other (Topic 350) - Simplifying the Test for Goodwill Impairment The amendment eliminates the requirement to estimate the implied fair value of goodwill if it is determined that the carrying amount of a reporting unit exceeds its fair value. Goodwill impairment will now be recognized by the amount by which a reporting unit’s carrying value exceeds its fair value, not to exceed the carrying amount of goodwill. Early adoption was permitted for interim or annual goodwill impairment tests performed on testing dates after January 1, 2017. January 1, 2018 We early adopted this new guidance on January 1, 2018 on a prospective basis. As a result, we expect the adoption to reduce the complexity surrounding the analysis of goodwill impairment during our annual goodwill impairment tests as of October 31, 2018, or if an event occurs or circumstances change that would more-likely-than-not reduce the fair value of a reporting unit below its carrying value. ASU 2017-07 , Compensation - Retirement Benefits (Topic 715) - Improving the Presentation of Net Periodic Pension Cost and Net Periodic Postretirement Benefit Cost The amendment requires an employer to disaggregate the service cost components from the other components of net benefit cost. The service cost components are required to be presented in operating income and the other components of net benefit cost are required to be presented outside of operating income. January 1, 2018 We adopted this new standard retrospectively on January 1, 2018. As a result, we recorded the nonservice cost component of net periodic benefit cost within other expense and reclassified from operating expenses (cost of services and corporate activities) to other expense $0.2 million for the three months ended June 30, 2017 and $0.7 million for the six months ended June 30, 2017 to conform to current period presentation. For additional details on the impact this adoption had on our results of operations, see the disclosures immediately following this table. ASU 2018-05 , Income Taxes (Topic 740)—Amendments to SEC paragraphs pursuant to SEC Staff Accounting Bulletin No. 118 This amends ASC 740 to incorporate the requirements of SEC Staff Accounting Bulletin No. 118, which provides guidance on accounting for the tax effects of the Tax Act for SEC registrants who do not have the necessary information available, prepared, or analyzed in reasonable detail to complete the accounting for certain income tax effects of the Tax Act. Upon issuance We recognized the provisional tax impacts of the Tax Act in the fourth quarter of 2017. During the three months ended June 30, 2018, we recorded a tax benefit of $0.1 million to the provisional estimate for the reduction in the corporate tax rate applied to the deferred tax assets included in the financial statements as of December 31, 2017 for the impact of the Tax Act. We continue to anticipate finalizing our analysis in connection with the completion of our tax return for 2017 to be filed in 2018. Refer to Note 16 – Income Taxes for additional information. Prior to January 1, 2018, we presented revenue in our Condensed Consolidated Statements of Operations in three separate line items as follows: Three Months Ended Six Months Ended (in thousands) June 30, 2017 June 30, 2017 Revenue: Exhibition and event services $ 275,295 $ 551,243 Exhibits and environments 44,814 86,737 Pursuit services 44,665 52,601 Total revenue $ 364,774 $ 690,581 In connection with the adoption of Topic 606, we changed the presentation of revenue in our Condensed Consolidated Statements of Operations and now present total services revenue and total products revenue. As a result, we changed the prior reporting period to conform to the current period presentation as follows: Three Months Ended Six Months Ended (in thousands) June 30, 2017 June 30, 2017 Revenue: Services $ 319,179 $ 609,822 Products 45,595 80,759 Total revenue $ 364,774 $ 690,581 As a result of the change in presentation of revenue in the Condensed Consolidated Statements of Operations, we also made the following conforming changes to the presentation of cost of services and cost of products. The following table also summarizes the impact of adopting ASU 2017-07 on our Condensed Consolidated Statements of Operations: Three Months Ended June 30, 2017 (in thousands) As Previously Reported Reclassifications to Conform with Revenue Presentation ASU 2017-07 As Newly Reported Cost of services $ 284,884 $ (2,841 ) $ (134 ) $ 281,909 Cost of products $ 40,488 $ 2,841 $ — $ 43,329 Corporate activities $ 3,008 $ — $ (88 ) $ 2,920 Other expense $ — $ — $ 222 $ 222 Six Months Ended June 30, 2017 (in thousands) As Previously Reported Reclassifications to Conform with Revenue Presentation ASU 2017-07 As Newly Reported Cost of services $ 558,493 $ 4,571 $ (517 ) $ 562,547 Cost of products $ 80,002 $ (4,571 ) $ — $ 75,431 Corporate activities $ 5,618 $ — $ (157 ) $ 5,461 Other expense $ — $ — $ 674 $ 674 |
Use of Estimates | Use of Estimates The preparation of financial statements in conformity with GAAP requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities at the date of the financial statements and the reported amounts of revenue and expenses during the reported period. Estimates and assumptions are used in accounting for, among other things, the fair value of our reporting units used to perform annual impairment testing of recorded goodwill; allowances for uncollectible accounts receivable; provisions for income taxes, including uncertain tax positions; valuation allowances related to deferred tax assets; liabilities for losses related to self-insured liability claims; liabilities for losses related to environmental remediation obligations; sublease income associated with restructuring liabilities; assumptions used to measure pension and postretirement benefit costs and obligations; assumptions used to determine share-based compensation costs under the fair value method; assumptions used to determine the redemption value of redeemable noncontrolling interests; and allocation of purchase price of acquired businesses. Actual results could differ from these and other estimates. |
Revenue Recognition | Revenue Recognition Beginning January 1, 2018, revenue is measured based on a specified amount of consideration in a contract with a customer, net of commissions paid to customers and amounts collected on behalf of third parties. We recognize revenue when a performance obligation is satisfied by transferring control of a product or service to a customer. GES’ service revenue is primarily derived through its comprehensive range of services to event organizers and corporate brand marketers including Core Services, Audio-Visual, and Event Technology . Pursuit’s service revenue is derived through its accommodations, admissions, transportation, and travel planning services. Pursuit’s product revenue is derived through food and beverage and retail sales. Pursuit’s revenue is recognized at the time services are performed or upon delivery of the product. Pursuit’s service revenue is recognized over time as the customer simultaneously receives and consumes the benefits. Pursuit’s product revenue is recognized at a point in time. The impact of adopting Topic 606 on our unaudited Condensed Consolidated Statement of Operations was $0.8 million to cost of services and $0.6 million to net income for the three months ended June 30, 2018 and $1.6 million to cost of services and $1.2 million to net income for the six months ended June 30, 2018. |
Noncontrolling Interests | Noncontrolling Interests Non-redeemable noncontrolling interest represents the portion of equity in a subsidiary that is not attributable, directly or indirectly, to us. Our non-redeemable noncontrolling interest relates to the 20% equity ownership interest that we do not own in Glacier Park, Inc. We report non-redeemable noncontrolling interest within stockholders’ equity in the Condensed Consolidated Balance Sheets. The amount of consolidated net income attributable to Viad and the non-redeemable noncontrolling interest is presented in the Condensed Consolidated Statements of Operations. Noncontrolling interests with redemption features that are not solely within our control are considered redeemable noncontrolling interests. Our redeemable noncontrolling interest relates to the 54.5% equity ownership interest in Esja Attractions ehf. (“Esja”). The Esja |
Insurance Recoveries | Insurance Recoveries Receipts from insurance up to the amount of the recognized losses are considered recoveries and are accounted for when they are probable of receipt. Anticipated proceeds in excess of the recognized loss are considered a gain contingency. A contingency gain for anticipated insurance proceeds in excess of losses already recognized is not recognized until all contingencies relating to the insurance claim have been resolved. Insurance proceeds allocated to business interruption gains are reported as cash flows from operating activities, and proceeds allocated to impairment recoveries are reported as cash flows from investing activities. Insurance proceeds used for capitalizable costs are classified as cash flows from investing activities, and proceeds used for non-capitalizable costs are classified as operating activities. |
Overview and Basis of Present30
Overview and Basis of Presentation (Tables) | 6 Months Ended |
Jun. 30, 2018 | |
New Accounting Pronouncements Or Change In Accounting Principle [Line Items] | |
Revenue in Condensed Consolidated Statement of Operations | Prior to January 1, 2018, we presented revenue in our Condensed Consolidated Statements of Operations in three separate line items as follows: Three Months Ended Six Months Ended (in thousands) June 30, 2017 June 30, 2017 Revenue: Exhibition and event services $ 275,295 $ 551,243 Exhibits and environments 44,814 86,737 Pursuit services 44,665 52,601 Total revenue $ 364,774 $ 690,581 In connection with the adoption of Topic 606, we changed the presentation of revenue in our Condensed Consolidated Statements of Operations and now present total services revenue and total products revenue. As a result, we changed the prior reporting period to conform to the current period presentation as follows: Three Months Ended Six Months Ended (in thousands) June 30, 2017 June 30, 2017 Revenue: Services $ 319,179 $ 609,822 Products 45,595 80,759 Total revenue $ 364,774 $ 690,581 |
ASU 2017-07 | |
New Accounting Pronouncements Or Change In Accounting Principle [Line Items] | |
Impact of Recent Accounting Pronouncements on Condensed Consolidated Statement of Operations | The following table also summarizes the impact of adopting ASU 2017-07 on our Condensed Consolidated Statements of Operations: Three Months Ended June 30, 2017 (in thousands) As Previously Reported Reclassifications to Conform with Revenue Presentation ASU 2017-07 As Newly Reported Cost of services $ 284,884 $ (2,841 ) $ (134 ) $ 281,909 Cost of products $ 40,488 $ 2,841 $ — $ 43,329 Corporate activities $ 3,008 $ — $ (88 ) $ 2,920 Other expense $ — $ — $ 222 $ 222 Six Months Ended June 30, 2017 (in thousands) As Previously Reported Reclassifications to Conform with Revenue Presentation ASU 2017-07 As Newly Reported Cost of services $ 558,493 $ 4,571 $ (517 ) $ 562,547 Cost of products $ 80,002 $ (4,571 ) $ — $ 75,431 Corporate activities $ 5,618 $ — $ (157 ) $ 5,461 Other expense $ — $ — $ 674 $ 674 |
Revenue and Related Contract 31
Revenue and Related Contract Costs and Contract Liabilities (Tables) | 6 Months Ended |
Jun. 30, 2018 | |
Summary of Changes in Contract Liabilities | Changes to contract liabilities are as follows: (in thousands) Balance at January 1, 2018 $ 31,981 Cash additions 87,716 Revenue recognized (68,676 ) Foreign exchange translation adjustment (602 ) Balance at June 30, 2018 $ 50,419 |
Summary of Changes in Contract Costs | Changes to contract costs are as follows: (in thousands) Balance at January 1, 2018 $ 16,878 Additions 32,720 Expenses (22,514 ) Foreign exchange translation adjustment (412 ) Balance at June 30, 2018 $ 26,672 |
Disaggregate GES and Pursuit Revenue by Major Product Line Timing of Revenue Recognition and Markets Served (Details) | The following tables disaggregate GES and Pursuit revenue by major product line, timing of revenue recognition, and markets served: GES Three Months Ended June 30, 2018 (in thousands) GES U.S. GES International Intersegment Eliminations Total Services: Core services $ 193,315 $ 50,257 $ — $ 243,572 Audio-visual 20,741 6,553 — 27,294 Event technology 10,534 2,847 — 13,381 Intersegment eliminations — — (6,346 ) (6,346 ) Total services 224,590 59,657 (6,346 ) 277,901 Products: Core products 16,649 20,772 — 37,421 Total revenue $ 241,239 $ 80,429 $ (6,346 ) $ 315,322 Timing of revenue recognition: Services transferred over time $ 224,590 $ 59,657 $ (6,346 ) $ 277,901 Products transferred over time (1) 10,084 5,710 — 15,794 Products transferred at a point in time 6,565 15,062 — 21,627 Total revenue $ 241,239 $ 80,429 $ (6,346 ) $ 315,322 Markets: Exhibitions $ 125,174 $ 53,368 $ — $ 178,542 Conferences 84,599 17,226 — 101,825 Corporate events 25,810 8,570 — 34,380 Consumer events 5,656 1,265 — 6,921 Intersegment eliminations — — (6,346 ) (6,346 ) Total revenue $ 241,239 $ 80,429 $ (6,346 ) $ 315,322 (1) GES’ graphics product revenue is recognized over time as it is considered a part of the single performance obligation satisfied over time. Six Months Ended June 30, 2018 (in thousands) GES U.S. GES International Intersegment Eliminations Total Services: Core services $ 356,682 $ 96,470 $ — $ 453,152 Audio-visual 37,825 9,721 — 47,546 Event technology 18,569 6,121 — 24,690 Intersegment eliminations — — (9,694 ) (9,694 ) Total services 413,076 112,312 (9,694 ) 515,694 Products: Core products 32,031 35,303 — 67,334 Total revenue $ 445,107 $ 147,615 $ (9,694 ) $ 583,028 Timing of revenue recognition: Services transferred over time $ 413,076 $ 112,312 $ (9,694 ) $ 515,694 Products transferred over time (1) 20,676 9,817 — 30,493 Products transferred at a point in time 11,355 25,486 — 36,841 Total revenue $ 445,107 $ 147,615 $ (9,694 ) $ 583,028 Markets: Exhibitions $ 255,668 $ 108,698 $ — $ 364,366 Conferences 122,415 23,887 — 146,302 Corporate events 55,254 13,430 — 68,684 Consumer events 11,770 1,600 — 13,370 Intersegment eliminations — — (9,694 ) (9,694 ) Total revenue $ 445,107 $ 147,615 $ (9,694 ) $ 583,028 (1) GES’ graphics product revenue is recognized over time as it is considered a part of the single performance obligation satisfied over time. Pursuit Three Months Ended Six Months Ended (in thousands) June 30, 2018 June 30, 2018 Services: Accommodations $ 9,030 $ 10,735 Admissions 23,480 27,059 Transportation 4,321 6,690 Travel planning 491 799 Intersegment eliminations (500 ) (706 ) Total services revenue 36,822 44,577 Products: Food and beverage 6,705 7,924 Retail operations 4,828 5,576 Total products revenue 11,533 13,500 Total revenue $ 48,355 $ 58,077 Timing of revenue recognition: Services transferred over time $ 36,822 $ 44,577 Products transferred at a point in time 11,533 13,500 Total revenue $ 48,355 $ 58,077 Markets: Banff Jasper Collection $ 28,519 $ 35,608 Alaska Collection 10,614 10,827 Glacier Park Collection 6,640 7,266 FlyOver 2,582 4,376 Total revenue $ 48,355 $ 58,077 |
Accounting Standards Update 2014-09 | |
Balance Sheet Reclassifications made to Separately Present Contract Costs and Contract Liabilities in Connection with Adoption of Topic 606 | In connection with the adoption of Topic 606, we made the following reclassifications to separately present contract costs and contract liabilities on the Condensed Consolidated Balance Sheet as of December 31, 2017: December 31, 2017 (in thousands) As Previously Reported Reclassifications As Adjusted Cash and cash equivalents $ 53,723 — $ 53,723 Accounts receivable, net 104,811 — 104,811 Inventories (1) 30,372 (12,822 ) 17,550 Current contract costs (1) — 13,436 13,436 Other current assets (1) 21,030 (1,289 ) 19,741 Property and equipment, net 305,571 — 305,571 Other investments and assets (1) 47,512 675 48,187 Deferred income taxes 23,548 — 23,548 Goodwill 270,551 — 270,551 Other intangible assets, net 62,781 — 62,781 Total assets $ 919,899 — $ 919,899 Accounts payable $ 77,380 — $ 77,380 Customer deposits (2) 33,415 (33,415 ) — Contract liabilities (2) — 31,981 31,981 Accrued compensation 30,614 — 30,614 Other current liabilities (2) 38,720 1,434 40,154 Debt and capital lease obligations, current and long-term 209,192 — 209,192 Pension and postretirement benefits 28,135 — 28,135 Other deferred items and liabilities 52,858 — 52,858 Total liabilities 470,314 — 470,314 Redeemable noncontrolling interest 6,648 — 6,648 Total stockholders’ equity (3) 442,937 — 442,937 Total liabilities and stockholders’ equity $ 919,899 — $ 919,899 (1) Contract costs primarily consist of deferred core services costs (including labor and vendor purchases) required to service future exhibitions, conferences and other events, and commission expenses incurred to obtain contracts. All such costs were previously included in “Inventories” and in certain other assets. As a result of the changes noted above, deferred core services costs related to exhibitions and events that are scheduled to occur longer than one year in the future are currently included in “Other investments and assets”. The impact of this change reduced total current assets at December 31, 2017 by $0.7 million. The amount of deferred core services costs included in “Other investments and assets” at June 30, 2018 was $5.1 million. (2) In connection with the adoption of Topic 606, we elected to more prominently present contract liabilities on the Consolidated Balance Sheets. Consequently, customer deposits of $33.4 million as of December 31, 2017, have been reclassified to “Contract liabilities” and to other certain current liabilities to conform to the current period presentation. (3) We determined that the cumulative effect of initially applying Topic 606 as an adjustment to the opening balance of retained earnings was not material, and therefore we made no adjustment. |
Share-Based Compensation (Table
Share-Based Compensation (Tables) | 6 Months Ended |
Jun. 30, 2018 | |
Disclosure Of Compensation Related Costs Sharebased Payments [Abstract] | |
Summary of Share-Based Compensation Expense | The following table summarizes share-based compensation expense: Three Months Ended Six Months Ended June 30, June 30, (in thousands) 2018 2017 2018 2017 Performance unit incentive plan (“PUP”) $ 1,324 $ 1,927 $ 1,518 $ 3,243 Restricted stock 667 774 1,170 1,397 Restricted stock units 54 47 74 107 Share-based compensation before income tax benefit 2,045 2,748 2,762 4,747 Income tax benefit (515 ) (1,028 ) (696 ) (1,772 ) Share-based compensation, net of income tax benefit $ 1,530 $ 1,720 $ 2,066 $ 2,975 |
Summary of Activity of the Outstanding Share-Based Compensation Awards | The following table summarizes the activity of the outstanding share-based compensation awards: PUP Awards Restricted Stock Restricted Stock Units Shares Weighted-Average Grant Date Fair Value Shares Weighted-Average Grant Date Fair Value Shares Weighted-Average Grant Date Fair Value Balance at December 31, 2017 239,338 $ 32.80 206,899 $ 33.16 12,750 $ 30.94 Granted 76,925 $ 52.03 47,157 $ 51.93 3,669 $ 52.28 Vested (75,761 ) $ 27.29 (62,684 ) $ 27.28 (4,300 ) $ 27.35 Forfeited — $ — (2,306 ) $ 39.84 (258 ) $ 37.69 Balance at June 30, 2018 240,502 $ 40.68 189,066 $ 39.71 11,861 $ 38.70 |
Summary of Stock Option Activity | Stock Options The following table summarizes stock option activity: Shares Weighted-Average Exercise Price Options outstanding and exercisable at December 31, 2017 63,773 $ 16.62 Exercised (5,084 ) $ 16.62 Options outstanding and exercisable at June 30, 2018 58,689 $ 16.62 |
Inventories (Tables)
Inventories (Tables) | 6 Months Ended |
Jun. 30, 2018 | |
Inventory Disclosure [Abstract] | |
Components of Inventories | The components of inventories consisted of the following: June 30, December 31, (in thousands) 2018 2017 Raw materials $ 20,361 $ 17,550 Work in process (1) — — Inventories $ 20,361 $ 17,550 (1) Upon the adoption of Topic 606, the deferred incremental costs of obtaining and fulfilling contracts that were previously reported in Inventories under “Work in process” are currently reported under “Current contract costs” and “Other investments and assets.” Refer to Note 2 – |
Other Current Assets (Tables)
Other Current Assets (Tables) | 6 Months Ended |
Jun. 30, 2018 | |
Deferred Costs Capitalized Prepaid And Other Assets Disclosure [Abstract] | |
Schedule of Other Current Assets | Other current assets consisted of the following: June 30, December 31, (in thousands) 2018 2017 Income tax receivable $ 14,138 $ 4,237 Prepaid vendor payments 5,903 5,048 Prepaid software maintenance 4,828 3,386 Prepaid taxes 959 912 Prepaid insurance 845 2,610 Prepaid rent 793 730 Prepaid other 3,510 2,172 Other 191 646 Other current assets $ 31,167 $ 19,741 |
Property and Equipment (Tables)
Property and Equipment (Tables) | 6 Months Ended |
Jun. 30, 2018 | |
Property Plant And Equipment [Abstract] | |
Schedule of Property and Equipment | Property and equipment consisted of the following: June 30, December 31, (in thousands) 2018 2017 Land and land interests $ 32,197 $ 32,544 Buildings and leasehold improvements 243,622 222,118 Equipment and other 364,480 351,676 Gross property and equipment 640,299 606,338 Accumulated depreciation (315,348 ) (300,767 ) Property and equipment, net $ 324,951 $ 305,571 |
Other Investments and Assets (T
Other Investments and Assets (Tables) | 6 Months Ended |
Jun. 30, 2018 | |
Investments All Other Investments [Abstract] | |
Summary of Other Investments and Assets | Other investments and assets consisted of the following: June 30, December 31, (in thousands) 2018 2017 Cash surrender value of life insurance $ 24,116 $ 23,947 Self-insured liability receivable 10,442 10,442 Contract costs (1) 5,147 3,442 Workers’ compensation insurance security deposits 3,550 3,550 Other mutual funds 2,838 2,637 Other 3,487 4,169 Other investments and assets $ 49,580 $ 48,187 (1) Upon the adoption of Topic 606, the deferred incremental costs of obtaining and fulfilling contracts that were previously reported in Inventories under “Work in process” are currently reported under “Current contract costs” and “Other investments and assets.” Refer to Note 2 – |
Goodwill and Other Intangible37
Goodwill and Other Intangible Assets (Tables) | 6 Months Ended |
Jun. 30, 2018 | |
Goodwill And Intangible Assets Disclosure [Abstract] | |
Summary of the Goodwill Balances by Component and Segment | The changes in the carrying amount of goodwill are as follows: (in thousands) GES U.S. GES International Pursuit Total Balance at December 31, 2017 $ 148,277 $ 38,840 $ 83,434 $ 270,551 Foreign currency translation adjustments — (1,038 ) (3,490 ) (4,528 ) Balance at June 30, 2018 $ 148,277 $ 37,802 $ 79,944 $ 266,023 |
Summary of Other Intangible Assets | Other intangible assets consisted of the following: June 30, 2018 December 31, 2017 (in thousands) Gross Carrying Value Accumulated Amortization Net Carrying Value Gross Carrying Value Accumulated Amortization Net Carrying Value Amortized intangible assets: Customer contracts and relationships $ 68,454 $ (27,708 ) $ 40,746 $ 68,798 $ (23,696 ) $ 45,102 Operating contracts and licenses 9,530 (1,207 ) 8,323 9,951 (1,094 ) 8,857 Tradenames 8,553 (3,343 ) 5,210 8,633 (2,873 ) 5,760 Non-compete agreements 5,298 (3,573 ) 1,725 5,363 (3,007 ) 2,356 Other 1,678 (745 ) 933 896 (650 ) 246 Total amortized intangible assets 93,513 (36,576 ) 56,937 93,641 (31,320 ) 62,321 Unamortized intangible assets: Business licenses 460 — 460 460 — 460 Other intangible assets $ 93,973 $ (36,576 ) $ 57,397 $ 94,101 $ (31,320 ) $ 62,781 |
Estimated Amortization Expense Related to Amortized Intangible Assets | The estimated future amortization expense related to amortized intangible assets held at June 30, 2018 is as follows: (in thousands) Year ending December 31, Remainder of 2018 $ 5,527 2019 9,951 2020 8,455 2021 7,465 2022 5,932 Thereafter 19,607 Total $ 56,937 |
Other Current Liabilities (Tabl
Other Current Liabilities (Tables) | 6 Months Ended |
Jun. 30, 2018 | |
Other Liabilities Current [Abstract] | |
Other Current Liabilities | Other current liabilities consisted of the following: June 30, December 31, (in thousands) 2018 2017 Continuing operations: Accommodation services deposits (1) $ 10,358 $ 2,540 Self-insured liability 6,255 6,208 Commissions payable 4,634 3,235 Accrued sales and use taxes 4,576 2,431 Accrued employee benefit costs 3,979 2,915 Accrued income tax payable 3,135 7,518 Accrued dividends 2,097 2,094 Current portion of pension and postretirement liabilities 1,921 2,109 Deferred rent 1,601 1,679 Accrued professional fees 662 1,020 Accrued restructuring 528 722 Accrued rebates (2) — — Other taxes 2,908 2,750 Other 3,851 3,852 Total continuing operations 46,505 39,073 Discontinued operations: Environmental remediation liabilities 720 648 Self-insured liability 401 337 Other 85 96 Total discontinued operations 1,206 1,081 Total other current liabilities $ 47,711 $ 40,154 (1) With the adoption of Topic 606, we present customer deposits as “Contract liabilities” as they are received prior to transferring the related product or service to the customer. We recognize revenue upon satisfaction of the related contract performance obligation(s). We reclassified $2.5 million of GES’ events accommodation services deposits out of “Contract liabilities” to “Other current liabilities” on the December 31, 2017 Condensed Consolidated Balance Sheet as they do not represent “Contract liabilities” but rather deposits from hotel guests that are passed on to the hotels. Refer to Note 2 – Revenue and Related Contract Costs and Contract Liabilities for additional information. (2) With the adoption of Topic 606, we reclassified $1.1 million of accrued rebates to “Contract liabilities” on the December 31, 2017 Condensed Consolidated Balance Sheet as they represent future performance obligations. Refer to Note 2 – |
Other Deferred Items and Liab39
Other Deferred Items and Liabilities (Tables) | 6 Months Ended |
Jun. 30, 2018 | |
Other Liabilities Disclosure [Abstract] | |
Summary of Other Deferred Items and Liabilities | Other deferred items and liabilities consisted of the following: June 30, December 31, (in thousands) 2018 2017 Continuing operations: Self-insured liability $ 13,130 $ 12,918 Self-insured excess liability 10,442 10,442 Foreign deferred tax liability 8,590 8,267 Accrued compensation 6,237 9,740 Deferred rent 3,654 3,855 Accrued restructuring 1,790 1,827 Other 1,303 1,305 Total continuing operations 45,146 48,354 Discontinued operations: Self-insured liability 2,358 2,557 Environmental remediation liabilities 1,616 1,728 Other 237 219 Total discontinued operations 4,211 4,504 Total other deferred items and liabilities $ 49,357 $ 52,858 |
Debt and Capital Lease Obliga40
Debt and Capital Lease Obligations (Tables) | 6 Months Ended |
Jun. 30, 2018 | |
Debt Disclosure [Abstract] | |
Schedule of Long-term Debt and Capital Lease Obligations | The components of long-term debt and capital lease obligations consisted of the following: June 30, December 31, (in thousands, except interest rates) 2018 2017 Revolving credit facility and term loan 3.6% weighted-average interest rate at June 30, 2018 and 3.1% at December 31, 2017, due through 2019 (1) $ 216,751 $ 207,322 Brewster Inc. revolving credit facility 3.1% weighted-average interest rate at June 30, 2018 (1) 19,487 — Less unamortized debt issuance costs (717 ) (984 ) Total debt 235,521 206,338 Capital lease obligations 4.2% weighted-average interest rate at June 30, 2018 and 3.8% at December 31, 2017, due through 2021 3,957 2,854 Total debt and capital lease obligations 239,478 209,192 Current portion (2) (190,967 ) (152,599 ) Long-term debt and capital lease obligations $ 48,511 $ 56,593 (1) Represents the weighted-average interest rate in effect at the respective periods for the revolving credit facilities and term loan borrowings, including any applicable margin. The interest rates do not include amortization of debt issuance costs or commitment fees. (2) Borrowings under the revolving credit facilities are classified as current because all borrowed amounts are due within one year. |
Fair Value Measurements (Tables
Fair Value Measurements (Tables) | 6 Months Ended |
Jun. 30, 2018 | |
Fair Value Disclosures [Abstract] | |
Summary of Fair Value Assets Measured on Recurring Basis | The fair value information related to these assets is summarized in the following tables: Fair Value Measurements at Reporting Date Using (in thousands) June 30, 2018 Quoted Prices in Active Markets (Level 1) Significant Other Observable Inputs (Level 2) Significant Unobservable Inputs (Level 3) Assets: Money market funds (1) $ 120 $ 120 $ — $ — Other mutual funds (2) 2,838 2,838 — — Total assets at fair value on a recurring basis $ 2,958 $ 2,958 $ — $ — Fair Value Measurements at Reporting Date Using (in thousands) December 31, 2017 Quoted Prices in Active Markets (Level 1) Significant Other Observable Inputs (Level 2) Significant Unobservable Inputs (Level 3) Assets: Money market funds (1) $ 119 $ 119 $ — $ — Other mutual funds (2) 2,637 2,637 — — Total assets at fair value on a recurring basis $ 2,756 $ 2,756 $ — $ — (1) Money market funds are included in “Cash and cash equivalents” in the Condensed Consolidated Balance Sheets. These investments are classified as available-for-sale and are recorded at fair value. There have been no realized gains or losses related to these investments and we have not experienced any redemption restrictions with respect to any of the money market mutual funds. (2) Other mutual funds are included in “Other investments and assets” in the Condensed Consolidated Balance Sheets. Upon the adoption of ASU 2016-01, unrealized gains on equity securities that were previously classified as available-for-sale are recognized in net income rather than “Accumulated other comprehensive income” (“AOCI”). We adopted this guidance prospectively on January 1, 2018 and recognized a cumulative-effect adjustment of $0.6 million to beginning retained earnings, which represents unrealized gains of $1.0 million ($0.6 million after tax) as of December 31, 2017 that were included in AOCI in the Condensed Consolidated Balance Sheets. Refer to Note 14 – Stockholders’ Equity for additional information. |
Stockholders' Equity (Tables)
Stockholders' Equity (Tables) | 6 Months Ended |
Jun. 30, 2018 | |
Equity [Abstract] | |
Reconciliation of Stockholders' Equity to Noncontrolling Interests | The following represents a reconciliation of the carrying amounts of stockholders’ equity attributable to Viad and the non-redeemable noncontrolling interest for the six months ended June 30, 2018 and 2017: (in thousands) Total Viad Stockholders’ Equity Non-redeemable Noncontrolling Interest Total Stockholders’ Equity Balance at December 31, 2017 $ 429,131 $ 13,806 $ 442,937 Net income (loss) 14,103 (397 ) 13,706 Dividends on common stock ($0.20 per share) (4,095 ) — (4,095 ) Common stock purchased for treasury (10,085 ) — (10,085 ) Employee benefit plans 4,211 — 4,211 Unrealized foreign currency translation adjustment (11,204 ) — (11,204 ) Other changes to AOCI 669 — 669 Other 42 — 42 Balance at June 30, 2018 $ 422,772 $ 13,409 $ 436,181 (in thousands) Total Viad Stockholders’ Equity Non-redeemable Noncontrolling Interest Total Stockholders’ Equity Balance at December 31, 2016 $ 357,355 $ 13,283 $ 370,638 Net income (loss) 34,724 (337 ) 34,387 Dividends on common stock ($0.20 per share) (4,077 ) — (4,077 ) Common stock purchased for treasury (1,204 ) — (1,204 ) Employee benefit plans 3,982 — 3,982 Unrealized foreign currency translation adjustment 9,705 — 9,705 Other changes to AOCI 243 — 243 Other 47 — 47 Balance at June 30, 2017 $ 400,775 $ 12,946 $ 413,721 |
Schedule of Accumulated Other Comprehensive Income (Loss) | Changes in AOCI by component are as follows: (in thousands) Unrealized Gains on Investments Cumulative Foreign Currency Translation Adjustments Unrecognized Net Actuarial Loss and Prior Service Credit, Net Accumulated Other Comprehensive Income (Loss) Balance at December 31, 2017 $ 616 $ (12,026 ) $ (11,158 ) $ (22,568 ) Adoption of ASU 2016-01 (1) (616 ) — — (616 ) Other comprehensive income before reclassifications — (11,204 ) — (11,204 ) Amounts reclassified from AOCI, net of tax — — 669 669 Net other comprehensive income (loss) (616 ) (11,204 ) 669 (11,151 ) Balance at June 30, 2018 $ — $ (23,230 ) $ (10,489 ) $ (33,719 ) (1) Upon the adoption of ASU 2016-01, we recorded a cumulative-effect adjustment from unrealized gains on investments to beginning retained earnings. |
Income Per Share (Tables)
Income Per Share (Tables) | 6 Months Ended |
Jun. 30, 2018 | |
Earnings Per Share [Abstract] | |
Reconciliation of Basic and Diluted Income Per Share | The components of basic and diluted income per share are as follows: Three Months Ended Six Months Ended June 30, June 30, (in thousands, except per share data) 2018 2017 2018 2017 Net income attributable to Viad (diluted) $ 23,490 $ 27,947 $ 14,103 $ 34,724 Less: Allocation to non-vested shares (222 ) (345 ) (139 ) (442 ) Adjustment to the redemption value of redeemable noncontrolling interest (52 ) — (90 ) — Net income allocated to Viad common stockholders (basic) $ 23,216 $ 27,602 $ 13,874 $ 34,282 Basic weighted-average outstanding common shares 20,209 20,140 20,208 20,112 Additional dilutive shares related to share-based compensation 227 224 238 243 Diluted weighted-average outstanding shares 20,436 20,364 20,446 20,355 Income per share: Basic income attributable to Viad common stockholders $ 1.15 $ 1.37 $ 0.69 $ 1.70 Diluted income attributable to Viad common stockholders (1) $ 1.15 $ 1.37 $ 0.69 $ 1.70 (1) Diluted income (loss) per share amount cannot exceed basic income (loss) per share. |
Pension and Postretirement Be44
Pension and Postretirement Benefits (Tables) | 6 Months Ended |
Jun. 30, 2018 | |
Compensation And Retirement Disclosure [Abstract] | |
Components of Net Periodic Benefit Cost of Pension and Postretirement Benefit Plans | The components of net periodic benefit cost of our pension and postretirement benefit plans for the three months ended June 30, 2018 and 2017 consist of the following: Domestic Plans Pension Plans Postretirement Benefit Plans Foreign Pension Plans (in thousands) 2018 2017 2018 2017 2018 2017 Service cost $ 33 $ 39 $ 32 $ 17 $ 138 $ 128 Interest cost 200 178 114 93 91 113 Expected return on plan assets (45 ) (68 ) — — (126 ) (146 ) Amortization of prior service credit — — (19 ) (105 ) — — Recognized net actuarial loss 124 94 65 20 39 45 Net periodic benefit cost $ 312 $ 243 $ 192 $ 25 $ 142 $ 140 The components of net periodic benefit cost of our pension and postretirement benefit plans for the six months ended June 30, 2018 and 2017 consist of the following: Domestic Plans Pension Plans Postretirement Benefit Plans Foreign Pension Plans (in thousands) 2018 2017 2018 2017 2018 2017 Service cost $ 35 $ 48 $ 56 $ 47 $ 280 $ 258 Interest cost 387 407 208 219 183 226 Expected return on plan assets (80 ) (107 ) — — (256 ) (294 ) Amortization of prior service credit — — (103 ) (216 ) — — Recognized net actuarial loss 246 230 117 120 80 89 Net periodic benefit cost $ 588 $ 578 $ 278 $ 170 $ 287 $ 279 |
Restructuring Charges (Tables)
Restructuring Charges (Tables) | 6 Months Ended |
Jun. 30, 2018 | |
Restructuring And Related Activities [Abstract] | |
Changes to Restructuring Liability by Major Restructuring Activity | Changes to the restructuring liability by major restructuring activity are as follows: GES Other Restructurings (in thousands) Severance & Employee Benefits Facilities Severance & Employee Benefits Total Balance at December 31, 2017 $ 1,551 $ 807 $ 191 $ 2,549 Restructuring charges 694 — 130 824 Cash payments (694 ) (38 ) (295 ) (1,027 ) Adjustment to liability 437 (451 ) (14 ) (28 ) Balance at June 30, 2018 $ 1,988 $ 318 $ 12 $ 2,318 |
Redeemable Noncontrolling Int46
Redeemable Noncontrolling Interest (Tables) | 6 Months Ended |
Jun. 30, 2018 | |
Noncontrolling Interest [Abstract] | |
Summary of Changes in Redeemable Noncontrolling Interest | Changes in the redeemable noncontrolling interest is as follows: (in thousands) Balance at December 31, 2017 $ 6,648 Net loss attributable to redeemable noncontrolling interest (161 ) Adjustment to the redemption value 90 Foreign currency translation adjustment (64 ) Balance at June 30, 2018 $ 6,513 |
Segment Information (Tables)
Segment Information (Tables) | 6 Months Ended |
Jun. 30, 2018 | |
Segment Reporting [Abstract] | |
Reconciliation of income statement items from reportable segments | Our reportable segments, with reconciliations to consolidated totals, are as follows: Three Months Ended Six Months Ended June 30, June 30, (in thousands) 2018 2017 2018 2017 Revenue: GES: U.S. $ 241,239 $ 242,031 $ 445,107 $ 499,242 International 80,429 85,283 147,615 149,182 Intersegment eliminations (6,346 ) (7,205 ) (9,694 ) (10,444 ) Total GES 315,322 320,109 583,028 637,980 Pursuit 48,355 44,665 58,077 52,601 Total revenue $ 363,677 $ 364,774 $ 641,105 $ 690,581 Segment operating income (loss): GES: U.S. $ 20,838 $ 21,320 $ 19,282 $ 42,666 International 8,167 9,349 10,303 11,382 Total GES 29,005 30,669 29,585 54,048 Pursuit 9,757 9,938 (1,638 ) (337 ) Segment operating income 38,762 40,607 27,947 53,711 Corporate eliminations (1) 17 16 33 32 Corporate activities (2,535 ) (2,920 ) (4,752 ) (5,461 ) Operating income 36,244 37,703 23,228 48,282 Interest income 53 42 137 100 Interest expense (2,354 ) (2,059 ) (4,423 ) (4,164 ) Other expense (2) (543 ) (222 ) (781 ) (674 ) Restructuring recoveries (charges): GES U.S. (240 ) (47 ) (240 ) (71 ) GES International (422 ) (121 ) (454 ) (354 ) Pursuit — — (140 ) — Corporate — — 10 (137 ) Impairment recoveries: Pursuit 35 2,247 35 4,631 Income from continuing operations before income taxes $ 32,773 $ 37,543 $ 17,372 $ 47,613 (1) (2) |
Overview and Basis of Present48
Overview and Basis of Presentation - Narrative (Details) $ in Thousands | 3 Months Ended | 6 Months Ended | ||||
Jun. 30, 2018USD ($) | Mar. 31, 2018USD ($) | Jun. 30, 2017USD ($) | Jun. 30, 2018USD ($)SegmentLodgeRecreationalExcursionRetailShopDiningOutlet | Jun. 30, 2017USD ($) | ||
Overview And Summary Of Significant Accounting Policies [Line Items] | ||||||
Number of reportable segments | Segment | 3 | |||||
Amount reclassified from operating expenses (cost of services and corporate activities) to other expense, with retrospective effect | [1] | $ 543 | $ 222 | $ 781 | $ 674 | |
Tax benefit to provisional estimate for reduction in corporate tax rate applied to deferred tax assets | 100 | |||||
Impact of adopting Topic 606 to net income | 23,490 | 27,947 | $ 14,103 | 34,724 | ||
Percentage of non equity ownership related redeemable noncontrolling interests | 54.50% | |||||
Glacier Park Inc | ||||||
Overview And Summary Of Significant Accounting Policies [Line Items] | ||||||
Percentage of non-equity ownership related to non-redeemable noncontrolling interests | 20.00% | |||||
ASU 2017-07 | ||||||
Overview And Summary Of Significant Accounting Policies [Line Items] | ||||||
Cumulative-effect adjustment to increase beginning retained earnings | $ 600 | |||||
Amount reclassified from operating expenses (cost of services and corporate activities) to other expense, with retrospective effect | 222 | 674 | ||||
Accounting Standards Update 2014-09 | Effect of Change | ||||||
Overview And Summary Of Significant Accounting Policies [Line Items] | ||||||
Impact of adopting Topic 606 to net income | 600 | $ 1,200 | ||||
Minimum | Accounting Standards Update 2016 02 | ||||||
Overview And Summary Of Significant Accounting Policies [Line Items] | ||||||
Anticipated lease liability and related right of use asset | 60,000 | 60,000 | ||||
Services | ||||||
Overview And Summary Of Significant Accounting Policies [Line Items] | ||||||
Impact of adopting Topic 606 to cost of services | 280,842 | 281,909 | 538,137 | 562,547 | ||
Services | ASU 2017-07 | ||||||
Overview And Summary Of Significant Accounting Policies [Line Items] | ||||||
Impact of adopting Topic 606 to cost of services | $ (134) | $ (517) | ||||
Services | Accounting Standards Update 2014-09 | Effect of Change | ||||||
Overview And Summary Of Significant Accounting Policies [Line Items] | ||||||
Impact of adopting Topic 606 to cost of services | $ 800 | $ 1,600 | ||||
GES | ||||||
Overview And Summary Of Significant Accounting Policies [Line Items] | ||||||
Number of product lines | Segment | 3 | |||||
Number of live event markets | Segment | 4 | |||||
Pursuit | ||||||
Overview And Summary Of Significant Accounting Policies [Line Items] | ||||||
Number of business lines | Segment | 4 | |||||
Pursuit | Banff Jasper Collection | ||||||
Overview And Summary Of Significant Accounting Policies [Line Items] | ||||||
Number of world-class recreational attractions | Recreational | 5 | |||||
Pursuit | Banff Jasper Collection | Banff National Park | ||||||
Overview And Summary Of Significant Accounting Policies [Line Items] | ||||||
Number of lodges | Lodge | 2 | |||||
Pursuit | Banff Jasper Collection | Jasper National Park | ||||||
Overview And Summary Of Significant Accounting Policies [Line Items] | ||||||
Number of lodges | Lodge | 1 | |||||
Pursuit | Alaska Collection | Denali National Park and Preserve | ||||||
Overview And Summary Of Significant Accounting Policies [Line Items] | ||||||
Number of lodges | Lodge | 2 | |||||
Number of sightseeing excursion | Excursion | 1 | |||||
Pursuit | Alaska Collection | Talkeetna | ||||||
Overview And Summary Of Significant Accounting Policies [Line Items] | ||||||
Number of lodges | Lodge | 1 | |||||
Pursuit | Alaska Collection | Kenai Fjords National Park | ||||||
Overview And Summary Of Significant Accounting Policies [Line Items] | ||||||
Number of lodges | Lodge | 2 | |||||
Pursuit | Glacier Park Collection | ||||||
Overview And Summary Of Significant Accounting Policies [Line Items] | ||||||
Number of lodges | Lodge | 7 | |||||
Number of retail shops | RetailShop | 12 | |||||
Number of dining outlets | DiningOutlet | 11 | |||||
[1] | We adopted ASU 2017-07 on January 1, 2018, which requires retrospective adoption. As a result, we recorded the nonservice cost component of net periodic benefit cost within other expense for the three and six months ended June 30, 2018, and we reclassified $0.2 million from operating expenses to other expense for the three months ended June 30, 2017 and $0.7 million for the six months ended June 30, 2017 to conform with current period presentation. Refer to Note 1 – Overview and Basis of Presentation for additional details on the impact of this adoption on our Condensed Consolidated Statements of Operations. |
Overview and Basis of Present49
Overview and Basis of Presentation - Revenue in Condensed Consolidated Statement of Operations (Details) - USD ($) $ in Thousands | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2018 | Jun. 30, 2017 | Jun. 30, 2018 | Jun. 30, 2017 | |
Revenue: | ||||
Total revenue | $ 363,677 | $ 364,774 | $ 641,105 | $ 690,581 |
Calculated under Revenue Guidance in Effect before Topic 606 | ||||
Revenue: | ||||
Total revenue | 364,774 | 690,581 | ||
Exhibition and Event Services [Member] | Calculated under Revenue Guidance in Effect before Topic 606 | ||||
Revenue: | ||||
Total revenue | 275,295 | 551,243 | ||
Exhibits and Environments [Member] | Calculated under Revenue Guidance in Effect before Topic 606 | ||||
Revenue: | ||||
Total revenue | 44,814 | 86,737 | ||
Pursuit Services [Member] | Calculated under Revenue Guidance in Effect before Topic 606 | ||||
Revenue: | ||||
Total revenue | $ 44,665 | $ 52,601 |
Overview and Basis of Present50
Overview and Basis of Presentation - Revenue in Condensed Consolidated Statement of Operations in Connection with Adoption of Topic 606 (Details) - USD ($) $ in Thousands | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2018 | Jun. 30, 2017 | Jun. 30, 2018 | Jun. 30, 2017 | |
Revenue: | ||||
Total revenue | $ 363,677 | $ 364,774 | $ 641,105 | $ 690,581 |
Services | ||||
Revenue: | ||||
Total revenue | 314,723 | 319,179 | 560,271 | 609,822 |
Products | ||||
Revenue: | ||||
Total revenue | $ 48,954 | $ 45,595 | $ 80,834 | $ 80,759 |
Overview and Basis of Present51
Overview and Basis of Presentation - Impact of Adopting ASU 2017-07 on Condensed Consolidated Statement of Operations (Details) - USD ($) $ in Thousands | 3 Months Ended | 6 Months Ended | |||
Jun. 30, 2018 | Jun. 30, 2017 | Jun. 30, 2018 | Jun. 30, 2017 | ||
New Accounting Pronouncements Or Change In Accounting Principle [Line Items] | |||||
Corporate activities | $ 2,535 | $ 2,920 | $ 4,752 | $ 5,461 | |
Other expense | [1] | 543 | 222 | 781 | 674 |
As Previously Reported | |||||
New Accounting Pronouncements Or Change In Accounting Principle [Line Items] | |||||
Corporate activities | 3,008 | 5,618 | |||
Services | |||||
New Accounting Pronouncements Or Change In Accounting Principle [Line Items] | |||||
Cost of services and products | 280,842 | 281,909 | 538,137 | 562,547 | |
Services | Reclassifications to Conform with Revenue Presentation | |||||
New Accounting Pronouncements Or Change In Accounting Principle [Line Items] | |||||
Cost of services and products | (2,841) | 4,571 | |||
Services | As Previously Reported | |||||
New Accounting Pronouncements Or Change In Accounting Principle [Line Items] | |||||
Cost of services and products | 284,884 | 558,493 | |||
Products | |||||
New Accounting Pronouncements Or Change In Accounting Principle [Line Items] | |||||
Cost of services and products | $ 44,433 | 43,329 | $ 75,555 | 75,431 | |
Products | Reclassifications to Conform with Revenue Presentation | |||||
New Accounting Pronouncements Or Change In Accounting Principle [Line Items] | |||||
Cost of services and products | 2,841 | (4,571) | |||
Products | As Previously Reported | |||||
New Accounting Pronouncements Or Change In Accounting Principle [Line Items] | |||||
Cost of services and products | 40,488 | 80,002 | |||
ASU 2017-07 | |||||
New Accounting Pronouncements Or Change In Accounting Principle [Line Items] | |||||
Corporate activities | (88) | (157) | |||
Other expense | 222 | 674 | |||
ASU 2017-07 | Services | |||||
New Accounting Pronouncements Or Change In Accounting Principle [Line Items] | |||||
Cost of services and products | $ (134) | $ (517) | |||
[1] | We adopted ASU 2017-07 on January 1, 2018, which requires retrospective adoption. As a result, we recorded the nonservice cost component of net periodic benefit cost within other expense for the three and six months ended June 30, 2018, and we reclassified $0.2 million from operating expenses to other expense for the three months ended June 30, 2017 and $0.7 million for the six months ended June 30, 2017 to conform with current period presentation. Refer to Note 1 – Overview and Basis of Presentation for additional details on the impact of this adoption on our Condensed Consolidated Statements of Operations. |
Revenue and Related Contract 52
Revenue and Related Contract Costs and Contract Liabilities - Narrative (Details) | 6 Months Ended |
Jun. 30, 2018USD ($) | |
Disaggregation Of Revenue [Line Items] | |
Revenue recognition description of capitalized contract costs | Capitalized contract costs are expensed upon the transfer of the related goods or services and are included in cost of services or cost of products sold, as applicable |
Capitalized contract costs to obtain contracts | $ 1,800,000 |
Capitalized contract costs to fulfill contracts | 24,900,000 |
Impairment loss on capitalized contract costs | $ 0 |
Maximum | |
Disaggregation Of Revenue [Line Items] | |
Unsatisfied performance obligations period | 1 year |
GES | |
Disaggregation Of Revenue [Line Items] | |
Performance obligation description of payment terms | Payment terms are generally within 30-60 days and contain no significant financing components |
GES | Minimum | |
Disaggregation Of Revenue [Line Items] | |
Performance obligation payment terms | 30 days |
GES | Maximum | |
Disaggregation Of Revenue [Line Items] | |
Performance obligation payment terms | 60 days |
Pursuit | |
Disaggregation Of Revenue [Line Items] | |
Performance obligation description of payment terms | When credit is extended, payment terms are generally within 30 days and contain no significant financing components |
Performance obligation payment terms | 30 days |
Revenue and Related Contract 53
Revenue and Related Contract Costs and Contract Liabilities - Summary of Changes in Contract Liabilities (Details) $ in Thousands | 6 Months Ended |
Jun. 30, 2018USD ($) | |
Revenue From Contract With Customer [Abstract] | |
Balance at January 1, 2018 | $ 31,981 |
Cash additions | 87,716 |
Revenue recognized | (68,676) |
Foreign exchange translation adjustment | (602) |
Balance at June 30, 2018 | $ 50,419 |
Revenue and Related Contract 54
Revenue and Related Contract Costs and Contract Liabilities - Summary of Changes in Contract Costs (Details) $ in Thousands | 6 Months Ended |
Jun. 30, 2018USD ($) | |
Revenue From Contract With Customer [Abstract] | |
Balance at January 1, 2018 | $ 16,878 |
Additions | 32,720 |
Expenses | (22,514) |
Foreign exchange translation adjustment | (412) |
Balance at June 30, 2018 | $ 26,672 |
Revenue and Related Contract 55
Revenue and Related Contract Costs and Contract Liabilities - Disaggregate GES and Pursuit Revenue by Major Product Line Timing of Revenue Recognition and Markets Served (Details) - USD ($) $ in Thousands | 3 Months Ended | 6 Months Ended | |||
Jun. 30, 2018 | Jun. 30, 2017 | Jun. 30, 2018 | Jun. 30, 2017 | ||
Disaggregation Of Revenue [Line Items] | |||||
Total revenue | $ 363,677 | $ 364,774 | $ 641,105 | $ 690,581 | |
GES | |||||
Disaggregation Of Revenue [Line Items] | |||||
Total revenue | 315,322 | 583,028 | |||
GES | Operating Segments | |||||
Disaggregation Of Revenue [Line Items] | |||||
Total revenue | 315,322 | 320,109 | 583,028 | 637,980 | |
GES | Intersegment Eliminations | |||||
Disaggregation Of Revenue [Line Items] | |||||
Total revenue | (6,346) | (7,205) | (9,694) | (10,444) | |
Pursuit | |||||
Disaggregation Of Revenue [Line Items] | |||||
Total revenue | 48,355 | 58,077 | |||
Pursuit | Operating Segments | |||||
Disaggregation Of Revenue [Line Items] | |||||
Total revenue | 48,355 | 44,665 | 58,077 | 52,601 | |
Pursuit | Intersegment Eliminations | |||||
Disaggregation Of Revenue [Line Items] | |||||
Total revenue | (500) | (706) | |||
U.S. | GES | Operating Segments | |||||
Disaggregation Of Revenue [Line Items] | |||||
Total revenue | 241,239 | 242,031 | 445,107 | 499,242 | |
International | GES | Operating Segments | |||||
Disaggregation Of Revenue [Line Items] | |||||
Total revenue | 80,429 | 85,283 | 147,615 | 149,182 | |
Services Transferred Over Time | GES | |||||
Disaggregation Of Revenue [Line Items] | |||||
Total revenue | 277,901 | 515,694 | |||
Services Transferred Over Time | GES | Intersegment Eliminations | |||||
Disaggregation Of Revenue [Line Items] | |||||
Total revenue | (6,346) | (9,694) | |||
Services Transferred Over Time | Pursuit | |||||
Disaggregation Of Revenue [Line Items] | |||||
Total revenue | 36,822 | 44,577 | |||
Services Transferred Over Time | U.S. | GES | Operating Segments | |||||
Disaggregation Of Revenue [Line Items] | |||||
Total revenue | 224,590 | 413,076 | |||
Services Transferred Over Time | International | GES | Operating Segments | |||||
Disaggregation Of Revenue [Line Items] | |||||
Total revenue | 59,657 | 112,312 | |||
Products Transferred Over Time | GES | |||||
Disaggregation Of Revenue [Line Items] | |||||
Total revenue | [1] | 15,794 | 30,493 | ||
Products Transferred Over Time | U.S. | GES | Operating Segments | |||||
Disaggregation Of Revenue [Line Items] | |||||
Total revenue | [1] | 10,084 | 20,676 | ||
Products Transferred Over Time | International | GES | Operating Segments | |||||
Disaggregation Of Revenue [Line Items] | |||||
Total revenue | [1] | 5,710 | 9,817 | ||
Products Transferred at a Point in Time | GES | |||||
Disaggregation Of Revenue [Line Items] | |||||
Total revenue | 21,627 | 36,841 | |||
Products Transferred at a Point in Time | Pursuit | |||||
Disaggregation Of Revenue [Line Items] | |||||
Total revenue | 11,533 | 13,500 | |||
Products Transferred at a Point in Time | U.S. | GES | Operating Segments | |||||
Disaggregation Of Revenue [Line Items] | |||||
Total revenue | 6,565 | 11,355 | |||
Products Transferred at a Point in Time | International | GES | Operating Segments | |||||
Disaggregation Of Revenue [Line Items] | |||||
Total revenue | 15,062 | 25,486 | |||
Core Services | GES | |||||
Disaggregation Of Revenue [Line Items] | |||||
Total revenue | 243,572 | 453,152 | |||
Core Services | U.S. | GES | Operating Segments | |||||
Disaggregation Of Revenue [Line Items] | |||||
Total revenue | 193,315 | 356,682 | |||
Core Services | International | GES | Operating Segments | |||||
Disaggregation Of Revenue [Line Items] | |||||
Total revenue | 50,257 | 96,470 | |||
Audio Visual | GES | |||||
Disaggregation Of Revenue [Line Items] | |||||
Total revenue | 27,294 | 47,546 | |||
Audio Visual | U.S. | GES | Operating Segments | |||||
Disaggregation Of Revenue [Line Items] | |||||
Total revenue | 20,741 | 37,825 | |||
Audio Visual | International | GES | Operating Segments | |||||
Disaggregation Of Revenue [Line Items] | |||||
Total revenue | 6,553 | 9,721 | |||
Event Technology | GES | |||||
Disaggregation Of Revenue [Line Items] | |||||
Total revenue | 13,381 | 24,690 | |||
Event Technology | U.S. | GES | Operating Segments | |||||
Disaggregation Of Revenue [Line Items] | |||||
Total revenue | 10,534 | 18,569 | |||
Event Technology | International | GES | Operating Segments | |||||
Disaggregation Of Revenue [Line Items] | |||||
Total revenue | 2,847 | 6,121 | |||
Total Services | GES | |||||
Disaggregation Of Revenue [Line Items] | |||||
Total revenue | 277,901 | 515,694 | |||
Total Services | GES | Intersegment Eliminations | |||||
Disaggregation Of Revenue [Line Items] | |||||
Total revenue | (6,346) | (9,694) | |||
Total Services | Pursuit | |||||
Disaggregation Of Revenue [Line Items] | |||||
Total revenue | 36,822 | 44,577 | |||
Total Services | U.S. | GES | Operating Segments | |||||
Disaggregation Of Revenue [Line Items] | |||||
Total revenue | 224,590 | 413,076 | |||
Total Services | International | GES | Operating Segments | |||||
Disaggregation Of Revenue [Line Items] | |||||
Total revenue | 59,657 | 112,312 | |||
Core Products | GES | |||||
Disaggregation Of Revenue [Line Items] | |||||
Total revenue | 37,421 | 67,334 | |||
Core Products | U.S. | GES | Operating Segments | |||||
Disaggregation Of Revenue [Line Items] | |||||
Total revenue | 16,649 | 32,031 | |||
Core Products | International | GES | Operating Segments | |||||
Disaggregation Of Revenue [Line Items] | |||||
Total revenue | 20,772 | 35,303 | |||
Exhibitions | GES | |||||
Disaggregation Of Revenue [Line Items] | |||||
Total revenue | 178,542 | 364,366 | |||
Exhibitions | U.S. | GES | Operating Segments | |||||
Disaggregation Of Revenue [Line Items] | |||||
Total revenue | 125,174 | 255,668 | |||
Exhibitions | International | GES | Operating Segments | |||||
Disaggregation Of Revenue [Line Items] | |||||
Total revenue | 53,368 | 108,698 | |||
Conferences | GES | |||||
Disaggregation Of Revenue [Line Items] | |||||
Total revenue | 101,825 | 146,302 | |||
Conferences | U.S. | GES | Operating Segments | |||||
Disaggregation Of Revenue [Line Items] | |||||
Total revenue | 84,599 | 122,415 | |||
Conferences | International | GES | Operating Segments | |||||
Disaggregation Of Revenue [Line Items] | |||||
Total revenue | 17,226 | 23,887 | |||
Corporate Events | GES | |||||
Disaggregation Of Revenue [Line Items] | |||||
Total revenue | 34,380 | 68,684 | |||
Corporate Events | U.S. | GES | Operating Segments | |||||
Disaggregation Of Revenue [Line Items] | |||||
Total revenue | 25,810 | 55,254 | |||
Corporate Events | International | GES | Operating Segments | |||||
Disaggregation Of Revenue [Line Items] | |||||
Total revenue | 8,570 | 13,430 | |||
Consumer Events | GES | |||||
Disaggregation Of Revenue [Line Items] | |||||
Total revenue | 6,921 | 13,370 | |||
Consumer Events | U.S. | GES | Operating Segments | |||||
Disaggregation Of Revenue [Line Items] | |||||
Total revenue | 5,656 | 11,770 | |||
Consumer Events | International | GES | Operating Segments | |||||
Disaggregation Of Revenue [Line Items] | |||||
Total revenue | 1,265 | 1,600 | |||
Accommodations | Pursuit | |||||
Disaggregation Of Revenue [Line Items] | |||||
Total revenue | 9,030 | 10,735 | |||
Admissions | Pursuit | |||||
Disaggregation Of Revenue [Line Items] | |||||
Total revenue | 23,480 | 27,059 | |||
Transportation | Pursuit | |||||
Disaggregation Of Revenue [Line Items] | |||||
Total revenue | 4,321 | 6,690 | |||
Travel Planning | Pursuit | |||||
Disaggregation Of Revenue [Line Items] | |||||
Total revenue | 491 | 799 | |||
Food and Beverage | Pursuit | |||||
Disaggregation Of Revenue [Line Items] | |||||
Total revenue | 6,705 | 7,924 | |||
Retail Operations | Pursuit | |||||
Disaggregation Of Revenue [Line Items] | |||||
Total revenue | 4,828 | 5,576 | |||
Products | |||||
Disaggregation Of Revenue [Line Items] | |||||
Total revenue | 48,954 | $ 45,595 | 80,834 | $ 80,759 | |
Products | Pursuit | |||||
Disaggregation Of Revenue [Line Items] | |||||
Total revenue | 11,533 | 13,500 | |||
Banff Jasper Collection | Pursuit | |||||
Disaggregation Of Revenue [Line Items] | |||||
Total revenue | 28,519 | 35,608 | |||
Alaska Collection | Pursuit | |||||
Disaggregation Of Revenue [Line Items] | |||||
Total revenue | 10,614 | 10,827 | |||
Glacier Park Collection | Pursuit | |||||
Disaggregation Of Revenue [Line Items] | |||||
Total revenue | 6,640 | 7,266 | |||
FlyOver | Pursuit | |||||
Disaggregation Of Revenue [Line Items] | |||||
Total revenue | $ 2,582 | $ 4,376 | |||
[1] | GES’ graphics product revenue is recognized over time as it is considered a part of the single performance obligation satisfied over time. |
Revenue and Related Contract 56
Revenue and Related Contract Costs and Contract Liabilities - Balance Sheet Reclassifications made to Separately Present Contract Costs and Contract Liabilities in Connection with Adoption of Topic 606 (Details) - USD ($) $ in Thousands | Jun. 30, 2018 | Dec. 31, 2017 | Jun. 30, 2017 | Dec. 31, 2016 | ||
Disaggregation Of Revenue [Line Items] | ||||||
Cash and cash equivalents | $ 49,386 | $ 53,723 | $ 44,042 | $ 20,900 | ||
Accounts receivable, net | 141,633 | 104,811 | ||||
Inventories | 20,361 | 17,550 | [1] | |||
Current contract costs | 21,525 | 13,436 | [1] | |||
Other current assets | 31,167 | 19,741 | [1] | |||
Property and equipment, net | 324,951 | 305,571 | ||||
Other investments and assets | 49,580 | 48,187 | [1] | |||
Deferred income taxes | 21,146 | 23,548 | ||||
Goodwill | 266,023 | 270,551 | ||||
Other intangible assets, net | 57,397 | 62,781 | ||||
Total Assets | 983,169 | 919,899 | ||||
Accounts payable | 96,569 | 77,380 | ||||
Contract liabilities | 50,419 | 31,981 | [2] | |||
Accrued compensation | 29,280 | 30,614 | ||||
Other current liabilities | 47,711 | 40,154 | [2] | |||
Debt and capital lease obligations, current and long-term | 239,478 | 209,192 | ||||
Pension and postretirement benefits | 27,661 | 28,135 | ||||
Other deferred items and liabilities | 49,357 | 52,858 | ||||
Total liabilities | 540,475 | 470,314 | ||||
Redeemable noncontrolling interest | 6,513 | 6,648 | ||||
Total stockholders' equity | 436,181 | 442,937 | [3] | $ 413,721 | $ 370,638 | |
Total Liabilities and Stockholders’ Equity | $ 983,169 | 919,899 | ||||
Accounting Standards Update 2014-09 | As Previously Reported | ||||||
Disaggregation Of Revenue [Line Items] | ||||||
Cash and cash equivalents | 53,723 | |||||
Accounts receivable, net | 104,811 | |||||
Inventories | [1] | 30,372 | ||||
Other current assets | [1] | 21,030 | ||||
Property and equipment, net | 305,571 | |||||
Other investments and assets | [1] | 47,512 | ||||
Deferred income taxes | 23,548 | |||||
Goodwill | 270,551 | |||||
Other intangible assets, net | 62,781 | |||||
Total Assets | 919,899 | |||||
Accounts payable | 77,380 | |||||
Customer deposits | [2] | 33,415 | ||||
Accrued compensation | 30,614 | |||||
Other current liabilities | [2] | 38,720 | ||||
Debt and capital lease obligations, current and long-term | 209,192 | |||||
Pension and postretirement benefits | 28,135 | |||||
Other deferred items and liabilities | 52,858 | |||||
Total liabilities | 470,314 | |||||
Redeemable noncontrolling interest | 6,648 | |||||
Total stockholders' equity | [3] | 442,937 | ||||
Total Liabilities and Stockholders’ Equity | 919,899 | |||||
Accounting Standards Update 2014-09 | Reclassifications | ||||||
Disaggregation Of Revenue [Line Items] | ||||||
Inventories | [1] | (12,822) | ||||
Current contract costs | [1] | 13,436 | ||||
Other current assets | [1] | (1,289) | ||||
Other investments and assets | [1] | 675 | ||||
Customer deposits | [2] | (33,415) | ||||
Contract liabilities | [2] | 31,981 | ||||
Other current liabilities | [2] | $ 1,434 | ||||
[1] | Contract costs primarily consist of deferred core services costs (including labor and vendor purchases) required to service future exhibitions, conferences and other events, and commission expenses incurred to obtain contracts. All such costs were previously included in “Inventories” and in certain other assets. As a result of the changes noted above, deferred core services costs related to exhibitions and events that are scheduled to occur longer than one year in the future are currently included in “Other investments and assets”. The impact of this change reduced total current assets at December 31, 2017 by $0.7 million. The amount of deferred core services costs included in “Other investments and assets” at June 30, 2018 was $5.1 million. | |||||
[2] | In connection with the adoption of Topic 606, we elected to more prominently present contract liabilities on the Consolidated Balance Sheets. Consequently, customer deposits of $33.4 million as of December 31, 2017, have been reclassified to “Contract liabilities” and to other certain current liabilities to conform to the current period presentation. | |||||
[3] | We determined that the cumulative effect of initially applying Topic 606 as an adjustment to the opening balance of retained earnings was not material, and therefore we made no adjustment. |
Revenue and Related Contract 57
Revenue and Related Contract Costs and Contract Liabilities - Balance Sheet Reclassifications made to Separately Present Contract Costs and Contract Liabilities in Connection with Adoption of Topic 606 (Parenthetical) (Details) - USD ($) $ in Thousands | Jun. 30, 2018 | Dec. 31, 2017 | |
Disaggregation Of Revenue [Line Items] | |||
Reclassification of customer deposits to contract liabilities | $ 50,419 | $ 31,981 | [1] |
Accounting Standards Update 2014-09 | |||
Disaggregation Of Revenue [Line Items] | |||
Reduction in total current assets | 700 | ||
Accounting Standards Update 2014-09 | Reclassification of Customer Deposits to Contract Liabilities | |||
Disaggregation Of Revenue [Line Items] | |||
Reclassification of customer deposits to contract liabilities | $ 33,400 | ||
Accounting Standards Update 2014-09 | Core Services | |||
Disaggregation Of Revenue [Line Items] | |||
Deferred costs included in other investments and assets | $ 5,100 | ||
[1] | In connection with the adoption of Topic 606, we elected to more prominently present contract liabilities on the Consolidated Balance Sheets. Consequently, customer deposits of $33.4 million as of December 31, 2017, have been reclassified to “Contract liabilities” and to other certain current liabilities to conform to the current period presentation. |
Share-Based Compensation - Summ
Share-Based Compensation - Summary of Share-Based Compensation Expense (Details) - USD ($) $ in Thousands | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2018 | Jun. 30, 2017 | Jun. 30, 2018 | Jun. 30, 2017 | |
Summary of share-based compensation expense | ||||
Share-based compensation before income tax benefit | $ 2,045 | $ 2,748 | $ 2,762 | $ 4,747 |
Income tax benefit | (515) | (1,028) | (696) | (1,772) |
Share-based compensation, net of income tax benefit | 1,530 | 1,720 | 2,066 | 2,975 |
Performance unit incentive plan (“PUP”) | ||||
Summary of share-based compensation expense | ||||
Share-based compensation before income tax benefit | 1,324 | 1,927 | 1,518 | 3,243 |
Restricted stock | ||||
Summary of share-based compensation expense | ||||
Share-based compensation before income tax benefit | 667 | 774 | 1,170 | 1,397 |
Restricted stock units | ||||
Summary of share-based compensation expense | ||||
Share-based compensation before income tax benefit | $ 54 | $ 47 | $ 74 | $ 107 |
Share-Based Compensation - Narr
Share-Based Compensation - Narrative (Details) - USD ($) | 1 Months Ended | 3 Months Ended | 6 Months Ended | ||||||
Mar. 31, 2018 | Feb. 28, 2018 | Mar. 31, 2017 | Feb. 28, 2017 | Jun. 30, 2018 | Jun. 30, 2017 | Jun. 30, 2018 | Jun. 30, 2017 | Dec. 31, 2017 | |
Employee Service Share-based Compensation, Allocation of Recognized Period Costs [Line Items] | |||||||||
Repurchase of common stock for employee tax withholding obligations amount, shares | 19,237 | 25,642 | |||||||
Repurchase of common stock for employee tax withholding obligations amount | $ 1,000,000 | $ 1,200,000 | |||||||
2017 Plan | |||||||||
Employee Service Share-based Compensation, Allocation of Recognized Period Costs [Line Items] | |||||||||
Useful Life of the plan | 10 years | ||||||||
Common stock shares issuable | 1,750,000 | 1,750,000 | |||||||
Shares available for grant | 1,667,216 | 1,667,216 | |||||||
2007 Plan | |||||||||
Employee Service Share-based Compensation, Allocation of Recognized Period Costs [Line Items] | |||||||||
Award vesting period | 3 years | ||||||||
2007 Plan | Performance Unit Incentive Plan (“PUP”) | |||||||||
Employee Service Share-based Compensation, Allocation of Recognized Period Costs [Line Items] | |||||||||
Awards with grant date fair value during the period | $ 4,000,000 | ||||||||
Stock value payable | 1,600,000 | ||||||||
Liability awards recorded | $ 6,000,000 | 6,000,000 | $ 11,000,000 | ||||||
Payments to employees | $ 5,900,000 | $ 3,700,000 | |||||||
2007 Plan | Restricted Stock | |||||||||
Employee Service Share-based Compensation, Allocation of Recognized Period Costs [Line Items] | |||||||||
Unamortized cost | 3,700,000 | $ 3,700,000 | |||||||
Recognition period of unrecognized cost | 1 year 4 months 24 days | ||||||||
Repurchase of common stock for employee tax withholding obligations amount, shares | 19,237 | 25,642 | |||||||
Repurchase of common stock for employee tax withholding obligations amount | $ 1,000,000 | $ 1,200,000 | |||||||
2007 Plan | Restricted Stock Units | |||||||||
Employee Service Share-based Compensation, Allocation of Recognized Period Costs [Line Items] | |||||||||
Payments to employees | $ 200,000 | $ 300,000 | |||||||
Liabilities related to restricted stock | 300,000 | 300,000 | $ 500,000 | ||||||
Restructuring Charges | |||||||||
Employee Service Share-based Compensation, Allocation of Recognized Period Costs [Line Items] | |||||||||
Share-based compensation before income tax benefit | $ 0 | $ 0 | $ 0 | $ 0 |
Share-Based Compensation - Su60
Share-Based Compensation - Summary of Activity of the Outstanding Share-Based Compensation Awards (Details) | 6 Months Ended |
Jun. 30, 2018$ / sharesshares | |
Performance Unit Incentive Plan (“PUP”) | |
Summary of activity of the outstanding share-based compensation awards | |
Beginning Balance, Shares | shares | 239,338 |
Granted, Shares | shares | 76,925 |
Vested, Shares | shares | (75,761) |
Forfeited, Shares | shares | 0 |
Ending Balance, Shares | shares | 240,502 |
Share-based Compensation Arrangement by Share-based Payment Award, Equity Instruments Other than Options, Nonvested, Weighted Average Grant Date Fair Value [Abstract] | |
Beginning Balance, Weighted-Average Grant Date Fair Value | $ / shares | $ 32.80 |
Granted, Weighted-Average Grant Date Fair Value | $ / shares | 52.03 |
Vested, Weighted-Average Grant Date Fair Value | $ / shares | 27.29 |
Forfeited, Weighted-Average Grant Date Fair Value | $ / shares | 0 |
Ending Balance, Weighted-Average Grant Date Fair Value | $ / shares | $ 40.68 |
Restricted Stock | |
Summary of activity of the outstanding share-based compensation awards | |
Beginning Balance, Shares | shares | 206,899 |
Granted, Shares | shares | 47,157 |
Vested, Shares | shares | (62,684) |
Forfeited, Shares | shares | (2,306) |
Ending Balance, Shares | shares | 189,066 |
Share-based Compensation Arrangement by Share-based Payment Award, Equity Instruments Other than Options, Nonvested, Weighted Average Grant Date Fair Value [Abstract] | |
Beginning Balance, Weighted-Average Grant Date Fair Value | $ / shares | $ 33.16 |
Granted, Weighted-Average Grant Date Fair Value | $ / shares | 51.93 |
Vested, Weighted-Average Grant Date Fair Value | $ / shares | 27.28 |
Forfeited, Weighted-Average Grant Date Fair Value | $ / shares | 39.84 |
Ending Balance, Weighted-Average Grant Date Fair Value | $ / shares | $ 39.71 |
Restricted Stock Units | |
Summary of activity of the outstanding share-based compensation awards | |
Beginning Balance, Shares | shares | 12,750 |
Granted, Shares | shares | 3,669 |
Vested, Shares | shares | (4,300) |
Forfeited, Shares | shares | (258) |
Ending Balance, Shares | shares | 11,861 |
Share-based Compensation Arrangement by Share-based Payment Award, Equity Instruments Other than Options, Nonvested, Weighted Average Grant Date Fair Value [Abstract] | |
Beginning Balance, Weighted-Average Grant Date Fair Value | $ / shares | $ 30.94 |
Granted, Weighted-Average Grant Date Fair Value | $ / shares | 52.28 |
Vested, Weighted-Average Grant Date Fair Value | $ / shares | 27.35 |
Forfeited, Weighted-Average Grant Date Fair Value | $ / shares | 37.69 |
Ending Balance, Weighted-Average Grant Date Fair Value | $ / shares | $ 38.70 |
Share-Based Compensation - Su61
Share-Based Compensation - Summary of Stock Option Activity (Details) | 6 Months Ended |
Jun. 30, 2018$ / sharesshares | |
Options outstanding and exercisable | |
Options outstanding and exercisable Beginning Balance, Shares | shares | 63,773 |
Exercised, Shares | shares | (5,084) |
Option outstanding and exercisable Ending Balance, Shares | shares | 58,689 |
Weighted-Average Exercise Price | |
Options outstanding and exercisable Beginning Balance, Weighted-Average Exercise Price | $ / shares | $ 16.62 |
Exercised, Weighted-Average Exercise Price | $ / shares | 16.62 |
Options outstanding and exercisable Ending Balance, Weighted-Average Exercise Price | $ / shares | $ 16.62 |
Acquisition of Business - Narra
Acquisition of Business - Narrative (Details) - Esja Attractions ehf. € in Millions | Nov. 03, 2017USD ($) | Nov. 03, 2017EUR (€) | Jun. 30, 2018USD ($) | Mar. 31, 2018USD ($) | Jun. 30, 2018USD ($) | Jun. 30, 2017USD ($) |
Business Acquisition [Line Items] | ||||||
Business acquisition date | Nov. 3, 2017 | Nov. 3, 2017 | ||||
Percentage of controlling interest acquired | 54.50% | |||||
Purchase price | $ 9,500,000 | € 8.2 | ||||
Estimated fair value of non-controlling interest | $ 6,700,000 | |||||
Fair value of noncontrolling interest, adjustments | $ 0 | |||||
Start-up Costs | ||||||
Business Acquisition [Line Items] | ||||||
Operating income (losses) | $ (200,000) | $ (400,000) | ||||
Corporate Activities | ||||||
Business Acquisition [Line Items] | ||||||
Acquisition related costs | $ 100,000 | $ 100,000 |
Inventories - Components of Inv
Inventories - Components of Inventories (Details) - USD ($) $ in Thousands | Jun. 30, 2018 | Dec. 31, 2017 | |
Components of Inventories | |||
Raw materials | $ 20,361 | $ 17,550 | |
Inventories | $ 20,361 | $ 17,550 | [1] |
[1] | Contract costs primarily consist of deferred core services costs (including labor and vendor purchases) required to service future exhibitions, conferences and other events, and commission expenses incurred to obtain contracts. All such costs were previously included in “Inventories” and in certain other assets. As a result of the changes noted above, deferred core services costs related to exhibitions and events that are scheduled to occur longer than one year in the future are currently included in “Other investments and assets”. The impact of this change reduced total current assets at December 31, 2017 by $0.7 million. The amount of deferred core services costs included in “Other investments and assets” at June 30, 2018 was $5.1 million. |
Other Current Assets - Schedule
Other Current Assets - Schedule of Other Current Assets (Details) - USD ($) $ in Thousands | Jun. 30, 2018 | Dec. 31, 2017 | |
Deferred Costs Capitalized Prepaid And Other Assets Disclosure [Abstract] | |||
Income tax receivable | $ 14,138 | $ 4,237 | |
Prepaid vendor payments | 5,903 | 5,048 | |
Prepaid software maintenance | 4,828 | 3,386 | |
Prepaid taxes | 959 | 912 | |
Prepaid insurance | 845 | 2,610 | |
Prepaid rent | 793 | 730 | |
Prepaid other | 3,510 | 2,172 | |
Other | 191 | 646 | |
Other current assets | $ 31,167 | $ 19,741 | [1] |
[1] | Contract costs primarily consist of deferred core services costs (including labor and vendor purchases) required to service future exhibitions, conferences and other events, and commission expenses incurred to obtain contracts. All such costs were previously included in “Inventories” and in certain other assets. As a result of the changes noted above, deferred core services costs related to exhibitions and events that are scheduled to occur longer than one year in the future are currently included in “Other investments and assets”. The impact of this change reduced total current assets at December 31, 2017 by $0.7 million. The amount of deferred core services costs included in “Other investments and assets” at June 30, 2018 was $5.1 million. |
Property and Equipment - Schedu
Property and Equipment - Schedule of Property and Equipment (Details) - USD ($) $ in Thousands | Jun. 30, 2018 | Dec. 31, 2017 |
Property Plant And Equipment [Line Items] | ||
Gross property and equipment | $ 640,299 | $ 606,338 |
Accumulated depreciation | (315,348) | (300,767) |
Property and equipment, net | 324,951 | 305,571 |
Land and land interests | ||
Property Plant And Equipment [Line Items] | ||
Gross property and equipment | 32,197 | 32,544 |
Buildings and leasehold improvements | ||
Property Plant And Equipment [Line Items] | ||
Gross property and equipment | 243,622 | 222,118 |
Equipment and other | ||
Property Plant And Equipment [Line Items] | ||
Gross property and equipment | $ 364,480 | $ 351,676 |
Property and Equipment - Narrat
Property and Equipment - Narrative (Details) - USD ($) $ in Millions | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2018 | Jun. 30, 2017 | Jun. 30, 2018 | Jun. 30, 2017 | |
Property Plant And Equipment [Abstract] | ||||
Depreciation expense | $ 12.3 | $ 11.3 | $ 22.6 | $ 20.4 |
Property and equipment acquired under capital leases, increased amount | 2.1 | 0.8 | ||
Property and equipment purchased through accounts payable and accrued liabilities, increased amount | $ 0.1 | $ 2 |
Other Investments and Assets -
Other Investments and Assets - Summary of Other Investments and Assets (Details) - USD ($) $ in Thousands | Jun. 30, 2018 | Dec. 31, 2017 | ||
Investments All Other Investments [Abstract] | ||||
Cash surrender value of life insurance | $ 24,116 | $ 23,947 | ||
Self-insured liability receivable | 10,442 | 10,442 | ||
Contract costs | [1] | 5,147 | 3,442 | |
Workers’ compensation insurance security deposits | 3,550 | 3,550 | ||
Other mutual funds | 2,838 | 2,637 | ||
Other | 3,487 | 4,169 | ||
Other investments and assets | $ 49,580 | $ 48,187 | [2] | |
[1] | Upon the adoption of Topic 606, the deferred incremental costs of obtaining and fulfilling contracts that were previously reported in Inventories under “Work in process” are currently reported under “Current contract costs” and “Other investments and assets.” Refer to Note 2 – Revenue and Related Contract Costs and Contract Liabilities for additional information. | |||
[2] | Contract costs primarily consist of deferred core services costs (including labor and vendor purchases) required to service future exhibitions, conferences and other events, and commission expenses incurred to obtain contracts. All such costs were previously included in “Inventories” and in certain other assets. As a result of the changes noted above, deferred core services costs related to exhibitions and events that are scheduled to occur longer than one year in the future are currently included in “Other investments and assets”. The impact of this change reduced total current assets at December 31, 2017 by $0.7 million. The amount of deferred core services costs included in “Other investments and assets” at June 30, 2018 was $5.1 million. |
Goodwill and Other Intangible68
Goodwill and Other Intangible Assets - Summary of Goodwill Balances by Component and Segment (Details) $ in Thousands | 6 Months Ended |
Jun. 30, 2018USD ($) | |
Goodwill [Line Items] | |
Balance, beginning | $ 270,551 |
Foreign currency translation adjustments | (4,528) |
Balance, ending | 266,023 |
GES U.S. | |
Goodwill [Line Items] | |
Balance, beginning | 148,277 |
Balance, ending | 148,277 |
GES International | |
Goodwill [Line Items] | |
Balance, beginning | 38,840 |
Foreign currency translation adjustments | (1,038) |
Balance, ending | 37,802 |
Pursuit | |
Goodwill [Line Items] | |
Balance, beginning | 83,434 |
Foreign currency translation adjustments | (3,490) |
Balance, ending | $ 79,944 |
Goodwill and Other Intangible69
Goodwill and Other Intangible Assets - Summary of Other Intangible Assets (Details) - USD ($) $ in Thousands | Jun. 30, 2018 | Dec. 31, 2017 |
Finite-Lived Intangible Assets, Net [Abstract] | ||
Amortized intangible assets, Gross Carrying Value | $ 93,513 | $ 93,641 |
Accumulated Amortization | (36,576) | (31,320) |
Amortized intangible assets, Net Carrying Value | 56,937 | 62,321 |
Intangible Assets, Gross (Excluding Goodwill) | 93,973 | 94,101 |
Other intangible assets, net | 57,397 | 62,781 |
Customer contracts and relationships | ||
Finite-Lived Intangible Assets, Net [Abstract] | ||
Amortized intangible assets, Gross Carrying Value | 68,454 | 68,798 |
Accumulated Amortization | (27,708) | (23,696) |
Amortized intangible assets, Net Carrying Value | 40,746 | 45,102 |
Operating contracts and licenses | ||
Finite-Lived Intangible Assets, Net [Abstract] | ||
Amortized intangible assets, Gross Carrying Value | 9,530 | 9,951 |
Accumulated Amortization | (1,207) | (1,094) |
Amortized intangible assets, Net Carrying Value | 8,323 | 8,857 |
Tradenames | ||
Finite-Lived Intangible Assets, Net [Abstract] | ||
Amortized intangible assets, Gross Carrying Value | 8,553 | 8,633 |
Accumulated Amortization | (3,343) | (2,873) |
Amortized intangible assets, Net Carrying Value | 5,210 | 5,760 |
Other | ||
Finite-Lived Intangible Assets, Net [Abstract] | ||
Amortized intangible assets, Gross Carrying Value | 1,678 | 896 |
Accumulated Amortization | (745) | (650) |
Amortized intangible assets, Net Carrying Value | 933 | 246 |
Non-compete agreements | ||
Finite-Lived Intangible Assets, Net [Abstract] | ||
Amortized intangible assets, Gross Carrying Value | 5,298 | 5,363 |
Accumulated Amortization | (3,573) | (3,007) |
Amortized intangible assets, Net Carrying Value | 1,725 | 2,356 |
Business licenses | ||
Finite-Lived Intangible Assets, Net [Abstract] | ||
Unamortized intangible assets, Gross Carrying Value | $ 460 | $ 460 |
Goodwill and Other Intangible70
Goodwill and Other Intangible Assets - Narrative (Details) - USD ($) $ in Millions | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2018 | Jun. 30, 2017 | Jun. 30, 2018 | Jun. 30, 2017 | |
Services | ||||
Segment Reporting Information [Line Items] | ||||
Intangible asset amortization expense | $ 2.9 | $ 3.3 | $ 5.5 | $ 6.3 |
Customer contracts and relationships | ||||
Segment Reporting Information [Line Items] | ||||
Weighted-average amortization period of intangible assets | 8 years 1 month 6 days | |||
Operating contracts and licenses | ||||
Segment Reporting Information [Line Items] | ||||
Weighted-average amortization period of intangible assets | 25 years 10 months 24 days | |||
Tradenames | ||||
Segment Reporting Information [Line Items] | ||||
Weighted-average amortization period of intangible assets | 6 years 7 months 6 days | |||
Non-compete agreements | ||||
Segment Reporting Information [Line Items] | ||||
Weighted-average amortization period of intangible assets | 1 year 9 months 18 days | |||
Other | ||||
Segment Reporting Information [Line Items] | ||||
Weighted-average amortization period of intangible assets | 8 years 2 months 12 days |
Goodwill and Other Intangible71
Goodwill and Other Intangible Assets - Estimated Amortization Expense Related to Amortized Intangible Assets (Details) - USD ($) $ in Thousands | Jun. 30, 2018 | Dec. 31, 2017 |
Estimated amortization expense related to amortized intangible assets | ||
Remainder of 2018 | $ 5,527 | |
2,019 | 9,951 | |
2,020 | 8,455 | |
2,021 | 7,465 | |
2,022 | 5,932 | |
Thereafter | 19,607 | |
Amortized intangible assets, Net Carrying Value | $ 56,937 | $ 62,321 |
Other Current Liabilities - Sch
Other Current Liabilities - Schedule of Other Current Liabilities (Details) - USD ($) $ in Thousands | Jun. 30, 2018 | Dec. 31, 2017 | ||
Continuing operations: | ||||
Accommodation services deposits | [1] | $ 10,358 | $ 2,540 | |
Self-insured liability | 6,255 | 6,208 | ||
Commissions payable | 4,634 | 3,235 | ||
Accrued sales and use taxes | 4,576 | 2,431 | ||
Accrued employee benefit costs | 3,979 | 2,915 | ||
Accrued income tax payable | 3,135 | 7,518 | ||
Accrued dividends | 2,097 | 2,094 | ||
Current portion of pension and postretirement liabilities | 1,921 | 2,109 | ||
Deferred rent | 1,601 | 1,679 | ||
Accrued professional fees | 662 | 1,020 | ||
Accrued restructuring | 528 | 722 | ||
Other taxes | 2,908 | 2,750 | ||
Other | 3,851 | 3,852 | ||
Total continuing operations | 46,505 | 39,073 | ||
Discontinued operations: | ||||
Environmental remediation liabilities | 720 | 648 | ||
Self-insured liability | 401 | 337 | ||
Other | 85 | 96 | ||
Total discontinued operations | 1,206 | 1,081 | ||
Total other current liabilities | $ 47,711 | $ 40,154 | [2] | |
[1] | With the adoption of Topic 606, we present customer deposits as “Contract liabilities” as they are received prior to transferring the related product or service to the customer. We recognize revenue upon satisfaction of the related contract performance obligation(s). We reclassified $2.5 million of GES’ events accommodation services deposits out of “Contract liabilities” to “Other current liabilities” on the December 31, 2017 Condensed Consolidated Balance Sheet as they do not represent “Contract liabilities” but rather deposits from hotel guests that are passed on to the hotels. Refer to Note 2 – Revenue and Related Contract Costs and Contract Liabilities for additional information. | |||
[2] | In connection with the adoption of Topic 606, we elected to more prominently present contract liabilities on the Consolidated Balance Sheets. Consequently, customer deposits of $33.4 million as of December 31, 2017, have been reclassified to “Contract liabilities” and to other certain current liabilities to conform to the current period presentation. |
Other Current Liabilities - S73
Other Current Liabilities - Schedule of Other Current Liabilities (Parenthetical) (Details) - USD ($) $ in Thousands | Jun. 30, 2018 | Dec. 31, 2017 | |
Other Liabilities Current [Line Items] | |||
Reclassification of GES’ events accommodation services deposits out of “Contract liabilities” to “Other current liabilities” | $ 47,711 | $ 40,154 | [1] |
Reclassification of accrued rebates to contract liabilities | $ 50,419 | 31,981 | [1] |
Adopting Topic 606 | Reclassification of Contract Liabilities to Other Contract Liabilities | |||
Other Liabilities Current [Line Items] | |||
Reclassification of GES’ events accommodation services deposits out of “Contract liabilities” to “Other current liabilities” | 2,500 | ||
Adopting Topic 606 | Reclassification of Accrued Rebates to Contract Liabilities | |||
Other Liabilities Current [Line Items] | |||
Reclassification of accrued rebates to contract liabilities | $ 1,100 | ||
[1] | In connection with the adoption of Topic 606, we elected to more prominently present contract liabilities on the Consolidated Balance Sheets. Consequently, customer deposits of $33.4 million as of December 31, 2017, have been reclassified to “Contract liabilities” and to other certain current liabilities to conform to the current period presentation. |
Other Deferred Items and Liab74
Other Deferred Items and Liabilities - Summary of Other Deferred Items and Liabilities (Details) - USD ($) $ in Thousands | Jun. 30, 2018 | Dec. 31, 2017 |
Continuing operations: | ||
Self-insured liability | $ 13,130 | $ 12,918 |
Self-insured excess liability | 10,442 | 10,442 |
Foreign deferred tax liability | 8,590 | 8,267 |
Accrued compensation | 6,237 | 9,740 |
Deferred rent | 3,654 | 3,855 |
Accrued restructuring | 1,790 | 1,827 |
Other | 1,303 | 1,305 |
Total continuing operations | 45,146 | 48,354 |
Discontinued operations: | ||
Self-insured liability | 2,358 | 2,557 |
Environmental remediation liabilities | 1,616 | 1,728 |
Other | 237 | 219 |
Total discontinued operations | 4,211 | 4,504 |
Total other deferred items and liabilities | $ 49,357 | $ 52,858 |
Debt and Capital Lease Obliga75
Debt and Capital Lease Obligations - Schedule of Long-term Debt and Capital Lease Obligations (Details) - USD ($) $ in Thousands | Jun. 30, 2018 | Dec. 31, 2017 | |
Debt Instrument [Line Items] | |||
Revolving credit facility and term loan gross | [1] | $ 216,751 | $ 207,322 |
Less unamortized debt issuance costs | (717) | (984) | |
Total debt | 235,521 | 206,338 | |
Capital lease obligations 4.2% weighted-average interest rate at June 30, 2018 and 3.8% at December 31, 2017, due through 2021 | 3,957 | 2,854 | |
Total debt and capital lease obligations | 239,478 | 209,192 | |
Current portion | [2] | (190,967) | (152,599) |
Long-term debt and capital lease obligations | 48,511 | $ 56,593 | |
Brewster Inc. Revolving Credit Facility | |||
Debt Instrument [Line Items] | |||
Revolving credit facility and term loan gross | [1] | $ 19,487 | |
[1] | Represents the weighted-average interest rate in effect at the respective periods for the revolving credit facilities and term loan borrowings, including any applicable margin. The interest rates do not include amortization of debt issuance costs or commitment fees. | ||
[2] | Borrowings under the revolving credit facilities are classified as current because all borrowed amounts are due within one year. |
Debt and Capital Lease Obliga76
Debt and Capital Lease Obligations - Schedule of Long-term Debt and Capital Lease Obligations (Parenthetical) (Details) | 6 Months Ended | 12 Months Ended |
Jun. 30, 2018 | Dec. 31, 2017 | |
Debt Instrument [Line Items] | ||
Interest rate on credit facility | 3.60% | 3.10% |
Weighted interest rate on long term debt | 4.20% | 3.80% |
Current revolving credit facility maturity period | 1 year | 1 year |
Brewster Inc. Revolving Credit Facility | ||
Debt Instrument [Line Items] | ||
Interest rate on credit facility | 3.10% |
Debt and Capital Lease Obliga77
Debt and Capital Lease Obligations - Narrative (Details) - USD ($) $ in Thousands | Dec. 06, 2016 | Dec. 22, 2014 | Jun. 30, 2018 | Jun. 30, 2017 | May 18, 2018 | Dec. 31, 2017 | Dec. 28, 2016 | |
Line of Credit Facility [Line Items] | ||||||||
Leverage ratio | 199.00% | |||||||
Fixed charge coverage ratio | 263.00% | |||||||
Total debt and capital lease obligations | $ 239,478 | $ 209,192 | ||||||
Revolving credit facility, balance outstanding | [1] | 216,751 | 207,322 | |||||
Capital lease obligations, total | 3,957 | 2,854 | ||||||
Remaining borrowing capacity on line of credit | 22,600 | |||||||
Letters of credit outstanding | 1,300 | |||||||
Unamortized debt issuance cost | 717 | 984 | ||||||
Fair value of debt | 233,500 | $ 203,200 | ||||||
Cash paid for interest on debt | $ 4,100 | $ 3,600 | ||||||
Revolving Credit Facility | ||||||||
Line of Credit Facility [Line Items] | ||||||||
Commitment fee percentage on line of credit | 0.35% | |||||||
Revolving credit facility, balance outstanding | $ 151,100 | |||||||
Term Loan | ||||||||
Line of Credit Facility [Line Items] | ||||||||
Revolving credit facility, balance outstanding | $ 65,600 | |||||||
Brewster Revolver | ||||||||
Line of Credit Facility [Line Items] | ||||||||
Borrowing capacity on line of credit | $ 20,000 | $ 30,000 | $ 38,000 | |||||
Maturity date | Dec. 28, 2018 | |||||||
Commitment fee percentage on line of credit | 0.25% | |||||||
Revolving credit facility, balance outstanding | [1] | $ 19,487 | ||||||
Remaining borrowing capacity on line of credit | $ 10,500 | |||||||
Amended and Restated Credit Agreement | ||||||||
Line of Credit Facility [Line Items] | ||||||||
Maturity date | Dec. 22, 2019 | |||||||
Amended and Restated Credit Agreement | Senior Credit Facility | ||||||||
Line of Credit Facility [Line Items] | ||||||||
Borrowing capacity on line of credit | $ 300,000 | |||||||
Amended and Restated Credit Agreement | Revolving Credit Facility | ||||||||
Line of Credit Facility [Line Items] | ||||||||
Borrowing capacity on line of credit | 175,000 | |||||||
Additional borrowing capacity on line of credit | 100,000 | |||||||
Line of Credit borrowings used to support letter of credit | 40,000 | |||||||
Amended and Restated Credit Agreement | Term Loan | ||||||||
Line of Credit Facility [Line Items] | ||||||||
Borrowing capacity on line of credit | $ 125,000 | |||||||
Amendment No. 1 | ||||||||
Line of Credit Facility [Line Items] | ||||||||
Maximum leverage ratio for acquisition | 300.00% | |||||||
Leverage ratio required for dividend or share activity | 250.00% | |||||||
Maximum leverage ratio for unsecured debt | 300.00% | |||||||
Annual share repurchase limit on leverage ratio basis | $ 20,000 | |||||||
Amendment No. 1 | Maximum | ||||||||
Line of Credit Facility [Line Items] | ||||||||
Leverage ratio | 350.00% | |||||||
Amendment No. 1 | Minimum | ||||||||
Line of Credit Facility [Line Items] | ||||||||
Fixed charge coverage ratio | 175.00% | |||||||
Top Tier Foreign Subsidiaries | Amended and Restated Credit Agreement | ||||||||
Line of Credit Facility [Line Items] | ||||||||
Percent of lenders security interest on capital stock foreign subsidiary | 65.00% | |||||||
[1] | Represents the weighted-average interest rate in effect at the respective periods for the revolving credit facilities and term loan borrowings, including any applicable margin. The interest rates do not include amortization of debt issuance costs or commitment fees. |
Fair Value Measurements - Summa
Fair Value Measurements - Summary of Fair Value Assets Measured on Recurring Basis (Details) - Fair Value, Measurements, Recurring - USD ($) $ in Thousands | Jun. 30, 2018 | Dec. 31, 2017 | |
Fair value information related to assets | |||
Assets | $ 2,958 | $ 2,756 | |
Quoted Prices in Active Markets (Level 1) | |||
Fair value information related to assets | |||
Assets | 2,958 | 2,756 | |
Money market funds | |||
Fair value information related to assets | |||
Assets | [1] | 120 | 119 |
Money market funds | Quoted Prices in Active Markets (Level 1) | |||
Fair value information related to assets | |||
Assets | [1] | 120 | 119 |
Other mutual funds | |||
Fair value information related to assets | |||
Assets | [2] | 2,838 | 2,637 |
Other mutual funds | Quoted Prices in Active Markets (Level 1) | |||
Fair value information related to assets | |||
Assets | [2] | $ 2,838 | $ 2,637 |
[1] | Money market funds are included in “Cash and cash equivalents” in the Condensed Consolidated Balance Sheets. These investments are classified as available-for-sale and are recorded at fair value. There have been no realized gains or losses related to these investments and we have not experienced any redemption restrictions with respect to any of the money market mutual funds. | ||
[2] | Other mutual funds are included in “Other investments and assets” in the Condensed Consolidated Balance Sheets. Upon the adoption of ASU 2016-01, unrealized gains on equity securities that were previously classified as available-for-sale are recognized in net income rather than “Accumulated other comprehensive income” (“AOCI”). We adopted this guidance prospectively on January 1, 2018 and recognized a cumulative-effect adjustment of $0.6 million to beginning retained earnings, which represents unrealized gains of $1.0 million ($0.6 million after tax) as of December 31, 2017 that were included in AOCI in the Condensed Consolidated Balance Sheets. Refer to Note 14 – Stockholders’ Equity for additional information. |
Fair Value Measurements - Sum79
Fair Value Measurements - Summary of Fair Value Assets Measured on Recurring Basis (Parenthetical) (Details) - USD ($) | 6 Months Ended | |
Jun. 30, 2018 | Dec. 31, 2017 | |
Fair Value Assets And Liabilities Measured On Recurring And Nonrecurring Basis [Line Items] | ||
Unrealized gains on the investments | $ 1,000,000 | |
Unrealized gains on the investments after-tax | 600,000 | |
Unrealized Gains on Equity Securities Classified as Available-for-sale | ||
Fair Value Assets And Liabilities Measured On Recurring And Nonrecurring Basis [Line Items] | ||
Cumulative-effect adjustment recognized to beginning retained earnings | $ (616,000) | |
Unrealized Gains on Equity Securities Classified as Available-for-sale | Adoption of ASU 2016-01 | ||
Fair Value Assets And Liabilities Measured On Recurring And Nonrecurring Basis [Line Items] | ||
Cumulative-effect adjustment recognized to beginning retained earnings | 600,000 | |
Money market funds | ||
Fair Value Assets And Liabilities Measured On Recurring And Nonrecurring Basis [Line Items] | ||
Realized gains on the investments | 0 | |
Unrealized gains on the investments | $ 0 | |
Other mutual funds | ||
Fair Value Assets And Liabilities Measured On Recurring And Nonrecurring Basis [Line Items] | ||
Unrealized gains on the investments | 1,000,000 | |
Unrealized gains on the investments after-tax | $ 600,000 |
Stockholders' Equity - Reconcil
Stockholders' Equity - Reconciliation of Stockholders' Equity to Noncontrolling Interests (Details) - USD ($) $ in Thousands | 3 Months Ended | 6 Months Ended | ||||
Jun. 30, 2018 | Jun. 30, 2017 | Jun. 30, 2018 | Jun. 30, 2017 | |||
Noncontrolling Interest [Line Items] | ||||||
Beginning Balance | $ 442,937 | [1] | $ 370,638 | |||
Net income (loss) attributable to Viad | $ 23,490 | $ 27,947 | 14,103 | 34,724 | ||
Net loss attributable to non-redeemable noncontrolling interest | (33) | (73) | (397) | (337) | ||
Net income (loss) | 13,706 | 34,387 | ||||
Dividends on common stock | (4,095) | (4,077) | ||||
Common stock purchased for treasury | (10,085) | (1,204) | ||||
Employee benefit plans | 4,211 | 3,982 | ||||
Unrealized foreign currency translation adjustment | [2] | (8,095) | 7,360 | (11,204) | 9,705 | |
Other changes to AOCI | 669 | 243 | ||||
Other | 42 | 47 | ||||
Ending Balance | 436,181 | 413,721 | 436,181 | 413,721 | ||
Non-Redeemable Non-Controlling Interest | ||||||
Noncontrolling Interest [Line Items] | ||||||
Beginning Balance | 13,806 | 13,283 | ||||
Net loss attributable to non-redeemable noncontrolling interest | (397) | (337) | ||||
Ending Balance | 13,409 | 12,946 | 13,409 | 12,946 | ||
Total Viad Equity | ||||||
Noncontrolling Interest [Line Items] | ||||||
Beginning Balance | 429,131 | 357,355 | ||||
Net income (loss) attributable to Viad | 14,103 | 34,724 | ||||
Dividends on common stock | (4,095) | (4,077) | ||||
Common stock purchased for treasury | (10,085) | (1,204) | ||||
Employee benefit plans | 4,211 | 3,982 | ||||
Unrealized foreign currency translation adjustment | (11,204) | 9,705 | ||||
Other changes to AOCI | 669 | 243 | ||||
Other | 42 | 47 | ||||
Ending Balance | $ 422,772 | $ 400,775 | $ 422,772 | $ 400,775 | ||
[1] | We determined that the cumulative effect of initially applying Topic 606 as an adjustment to the opening balance of retained earnings was not material, and therefore we made no adjustment. | |||||
[2] | The tax effect on other comprehensive income (loss) is not significant. |
Stockholders' Equity - Reconc81
Stockholders' Equity - Reconciliation of Stockholders' Equity to Noncontrolling Interests (Parenthetical) (Details) - $ / shares | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2018 | Jun. 30, 2017 | Jun. 30, 2018 | Jun. 30, 2017 | |
Equity [Abstract] | ||||
Dividends declared per common share | $ 0.10 | $ 0.10 | $ 0.20 | $ 0.20 |
Stockholders' Equity - Schedule
Stockholders' Equity - Schedule of Accumulated Other Comprehensive Income (Loss) (Details) $ in Thousands | 6 Months Ended | |
Jun. 30, 2018USD ($) | ||
Accumulated Other Comprehensive Income (Loss), Net of Tax [Roll Forward] | ||
Beginning Balance | $ 442,937 | [1] |
Ending Balance | 436,181 | |
Unrealized Gains on Investments | ||
Accumulated Other Comprehensive Income (Loss), Net of Tax [Roll Forward] | ||
Beginning Balance | 616 | |
Net other comprehensive income (loss) | (616) | |
Adoption of ASU 2016-01 | (616) | |
Cumulative Foreign Currency Translation Adjustments | ||
Accumulated Other Comprehensive Income (Loss), Net of Tax [Roll Forward] | ||
Beginning Balance | (12,026) | |
Other comprehensive income before reclassifications | (11,204) | |
Net other comprehensive income (loss) | (11,204) | |
Ending Balance | (23,230) | |
Unrecognized Net Actuarial Loss and Prior Service Credit, Net | ||
Accumulated Other Comprehensive Income (Loss), Net of Tax [Roll Forward] | ||
Beginning Balance | (11,158) | |
Amounts reclassified from AOCI, net of tax | 669 | |
Net other comprehensive income (loss) | 669 | |
Ending Balance | (10,489) | |
Accumulated Other Comprehensive Income (Loss) | ||
Accumulated Other Comprehensive Income (Loss), Net of Tax [Roll Forward] | ||
Beginning Balance | (22,568) | |
Other comprehensive income before reclassifications | (11,204) | |
Amounts reclassified from AOCI, net of tax | 669 | |
Net other comprehensive income (loss) | (11,151) | |
Ending Balance | (33,719) | |
Adoption of ASU 2016-01 | $ (616) | |
[1] | We determined that the cumulative effect of initially applying Topic 606 as an adjustment to the opening balance of retained earnings was not material, and therefore we made no adjustment. |
Stockholders' Equity - Addition
Stockholders' Equity - Additional Infomation (Details) $ in Millions | Dec. 31, 2017USD ($) |
Equity [Abstract] | |
Unrealized gains on the investments | $ 1 |
Unrealized gains on the investments after-tax | $ 0.6 |
Income Per Share - Reconciliati
Income Per Share - Reconciliation of Basic and Diluted Income Per Share (Details) - USD ($) $ / shares in Units, shares in Thousands, $ in Thousands | 3 Months Ended | 6 Months Ended | |||
Jun. 30, 2018 | Jun. 30, 2017 | Jun. 30, 2018 | Jun. 30, 2017 | ||
Numerator: | |||||
Impact of adopting Topic 606 to net income | $ 23,490 | $ 27,947 | $ 14,103 | $ 34,724 | |
Less: Allocation to non-vested shares | (222) | (345) | (139) | (442) | |
Adjustment to the redemption value of redeemable noncontrolling interest | (52) | (90) | |||
Net income allocated to Viad common stockholders (basic) | $ 23,216 | $ 27,602 | $ 13,874 | $ 34,282 | |
Denominator: | |||||
Basic weighted-average outstanding common shares | 20,209 | 20,140 | 20,208 | 20,112 | |
Additional dilutive shares related to share-based compensation | 227 | 224 | 238 | 243 | |
Diluted weighted-average outstanding shares | 20,436 | 20,364 | 20,446 | 20,355 | |
Basic income attributable to Viad common stockholders | $ 1.15 | $ 1.37 | $ 0.69 | $ 1.70 | |
Diluted income attributable to Viad common stockholders(1) | [1] | $ 1.15 | $ 1.37 | $ 0.69 | $ 1.70 |
[1] | Diluted income (loss) per share amount cannot exceed basic income (loss) per share. |
Income Taxes - Narrative (Detai
Income Taxes - Narrative (Details) - USD ($) $ in Millions | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2018 | Jun. 30, 2017 | Jun. 30, 2018 | Jun. 30, 2017 | |
Income Tax Disclosure [Abstract] | ||||
Effective income tax rate | 27.80% | 27.10% | 25.80% | 27.10% |
Federal statutory tax rate | 21.00% | 35.00% | ||
Tax benefit to provisional estimate for reduction in corporate tax rate applied to deferred tax assets | $ 0.1 | |||
Income Taxes Paid | $ 16.8 | $ 7.1 |
Pension and Postretirement Be86
Pension and Postretirement Benefits - Components of Net Periodic Benefit Cost of Pension and Postretirement Benefit Plans (Details) - USD ($) $ in Thousands | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2018 | Jun. 30, 2017 | Jun. 30, 2018 | Jun. 30, 2017 | |
Domestic Plans | Pension Plans | ||||
Defined Benefit Plan Disclosure [Line Items] | ||||
Service cost | $ 33 | $ 39 | $ 35 | $ 48 |
Interest cost | 200 | 178 | 387 | 407 |
Expected return on plan assets | (45) | (68) | (80) | (107) |
Recognized net actuarial loss | 124 | 94 | 246 | 230 |
Net periodic benefit cost | 312 | 243 | 588 | 578 |
Domestic Plans | Postretirement Benefit Plans | ||||
Defined Benefit Plan Disclosure [Line Items] | ||||
Service cost | 32 | 17 | 56 | 47 |
Interest cost | 114 | 93 | 208 | 219 |
Amortization of prior service credit | (19) | (105) | (103) | (216) |
Recognized net actuarial loss | 65 | 20 | 117 | 120 |
Net periodic benefit cost | 192 | 25 | 278 | 170 |
Foreign Pension Plans | ||||
Defined Benefit Plan Disclosure [Line Items] | ||||
Service cost | 138 | 128 | 280 | 258 |
Interest cost | 91 | 113 | 183 | 226 |
Expected return on plan assets | (126) | (146) | (256) | (294) |
Recognized net actuarial loss | 39 | 45 | 80 | 89 |
Net periodic benefit cost | $ 142 | $ 140 | $ 287 | $ 279 |
Pension and Postretirement Be87
Pension and Postretirement Benefits - Narrative (Details) $ in Millions | 6 Months Ended |
Jun. 30, 2018USD ($) | |
Postretirement Benefit Plans | |
Defined Benefit Plan Disclosure [Line Items] | |
Amount expected to contribute in postretirement benefit plans | $ 1.1 |
Pension and Other Postretirement Benefit Contributions | 0.6 |
Funded Plans | Pension Plans | |
Defined Benefit Plan Disclosure [Line Items] | |
Amount expected to contribute in funded pension plans | 1 |
Pension Contributions | 0.5 |
Unfunded Pension Plans | Pension Plans | |
Defined Benefit Plan Disclosure [Line Items] | |
Amount expected to contribute in unfunded pension plans | 1 |
Pension Contributions | $ 0.4 |
Restructuring Charges - Changes
Restructuring Charges - Changes to Restructuring Liability by Major Restructuring Activity (Details) - USD ($) $ in Thousands | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2018 | Jun. 30, 2017 | Jun. 30, 2018 | Jun. 30, 2017 | |
Restructuring Cost And Reserve [Line Items] | ||||
Beginning balance | $ 2,549 | |||
Restructuring charges | $ 662 | $ 168 | 824 | $ 562 |
Cash payments | (1,027) | |||
Adjustment to liability | (28) | |||
Ending balance | 2,318 | 2,318 | ||
GES | Severance & Employee Benefits | ||||
Restructuring Cost And Reserve [Line Items] | ||||
Beginning balance | 1,551 | |||
Restructuring charges | 694 | |||
Cash payments | (694) | |||
Adjustment to liability | 437 | |||
Ending balance | 1,988 | 1,988 | ||
GES | Facilities | ||||
Restructuring Cost And Reserve [Line Items] | ||||
Beginning balance | 807 | |||
Cash payments | (38) | |||
Adjustment to liability | (451) | |||
Ending balance | 318 | 318 | ||
Other Restructuring | Severance & Employee Benefits | ||||
Restructuring Cost And Reserve [Line Items] | ||||
Beginning balance | 191 | |||
Restructuring charges | 130 | |||
Cash payments | (295) | |||
Adjustment to liability | (14) | |||
Ending balance | $ 12 | $ 12 |
Litigation, Claims, Contingen89
Litigation, Claims, Contingencies and Other - Narrative (Details) | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2018USD ($) | Jun. 30, 2017USD ($) | Jun. 30, 2018USD ($)Agreement | Jun. 30, 2017USD ($) | |
Loss Contingencies [Line Items] | ||||
Environmental remediation liability | $ 2,300,000 | $ 2,300,000 | ||
Maximum potential amount of future payments | 17,700,000 | $ 17,700,000 | ||
Guarantees relate to facilities leased by the company | 2027-10 | |||
Recourse provision to recover guarantees | 0 | $ 0 | ||
Bargaining agreements | Agreement | 100 | |||
Self insurance reserve | 19,400,000 | $ 19,400,000 | ||
Workers' compensation liability | 14,000,000 | 14,000,000 | ||
Self insurance reserve for general and auto | 5,400,000 | 5,400,000 | ||
Self insurance reserve on discontinued operations | 2,800,000 | 2,800,000 | ||
Estimated employee health benefit claims incurred but not yet reported | 1,700,000 | 1,700,000 | ||
Payments for self insurance | 1,200,000 | $ 1,200,000 | 2,700,000 | $ 2,500,000 |
Self insurance reserve in which company is the primary obligor | 10,400,000 | 10,400,000 | ||
Self insurance reserve in which company is the primary obligor for workers compensation | 6,900,000 | 6,900,000 | ||
Self insurance reserve in which company is the primary obligor for general liability | 3,500,000 | 3,500,000 | ||
Minimum | ||||
Loss Contingencies [Line Items] | ||||
General range on claims | 200,000 | 200,000 | ||
Maximum | ||||
Loss Contingencies [Line Items] | ||||
General range on claims | $ 500,000 | $ 500,000 |
Redeemable Noncontrolling Int90
Redeemable Noncontrolling Interest - Narrative (Details) - Esja Attractions ehf. - EUR (€) | 6 Months Ended | |
Jun. 30, 2018 | Nov. 03, 2017 | |
Redeemable Noncontrolling Interest [Line Items] | ||
Percentage of controlling interest acquired | 54.50% | |
EBITDA trailing period | 12 months | |
Put option right of exercisable period upon earnings | 36 months | |
Redeemable noncontrolling interest conditions | The put option is only exercisable after 36 months of business operation (the “Reference Date”) and if the FlyOver Iceland attraction has earned a minimum of €3.25 million in unadjusted EBITDA during the most recent fiscal year and during the trailing 12-month period prior to exercise (the “Put Option Condition”). The put option is exercisable during a period of 12 months following the Reference Date (the “Option Period”) and if the Put Option Condition has been met. If the Put Option Condition has not been met during the first Option Period, the Reference Date will be extended for an additional 12 months up to three times. If after 72 months, the FlyOver Iceland attraction has not achieved the Put Option Condition, the put option expires. If the Put Option Condition is met during any of the Option Periods, yet the shares are not exercised prior to the end of the 12-month Option Period, the put option will expire. | |
Put option exercisable period | 12 months | |
Put option additional exercisable period upon not meeting of conditions | 12 months | |
FlyOver Iceland | ||
Redeemable Noncontrolling Interest [Line Items] | ||
Put option expiration period | 72 months | |
FlyOver Iceland | Minimum | ||
Redeemable Noncontrolling Interest [Line Items] | ||
Unadjusted EBITDA | € 3,250,000 |
Redeemable Noncontrolling Int91
Redeemable Noncontrolling Interest - Summary of Changes in Redeemable Noncontrolling Interest (Details) - USD ($) $ in Thousands | 3 Months Ended | 6 Months Ended |
Jun. 30, 2018 | Jun. 30, 2018 | |
Noncontrolling Interest [Abstract] | ||
Balance at December 31, 2017 | $ 6,648 | |
Net loss attributable to redeemable noncontrolling interest | $ (77) | (161) |
Adjustment to the redemption value | 90 | |
Foreign currency translation adjustment | (64) | |
Balance at June 30, 2018 | $ 6,513 | $ 6,513 |
Segment Information - Reconcili
Segment Information - Reconciliation of Income Statement Items from Reportable Segments (Details) - USD ($) $ in Thousands | 3 Months Ended | 6 Months Ended | |||
Jun. 30, 2018 | Jun. 30, 2017 | Jun. 30, 2018 | Jun. 30, 2017 | ||
Reportable segments reconciliations: | |||||
Total revenue | $ 363,677 | $ 364,774 | $ 641,105 | $ 690,581 | |
Segment operating income | 36,244 | 37,703 | 23,228 | 48,282 | |
Interest income | 53 | 42 | 137 | 100 | |
Interest expense | (2,354) | (2,059) | (4,423) | (4,164) | |
Other expense | [1] | (543) | (222) | (781) | (674) |
Restructuring recoveries (charges) | (662) | (168) | (824) | (562) | |
Impairment recoveries | 35 | 4,631 | |||
Income from continuing operations before income taxes | 32,773 | 37,543 | 17,372 | 47,613 | |
GES | |||||
Reportable segments reconciliations: | |||||
Total revenue | 315,322 | 583,028 | |||
Pursuit | |||||
Reportable segments reconciliations: | |||||
Total revenue | 48,355 | 58,077 | |||
Operating Segments | |||||
Reportable segments reconciliations: | |||||
Segment operating income | 38,762 | 40,607 | 27,947 | 53,711 | |
Operating Segments | GES | |||||
Reportable segments reconciliations: | |||||
Total revenue | 315,322 | 320,109 | 583,028 | 637,980 | |
Segment operating income | 29,005 | 30,669 | 29,585 | 54,048 | |
Operating Segments | Pursuit | |||||
Reportable segments reconciliations: | |||||
Total revenue | 48,355 | 44,665 | 58,077 | 52,601 | |
Segment operating income | 9,757 | 9,938 | (1,638) | (337) | |
Restructuring recoveries (charges) | (140) | ||||
Impairment recoveries | 35 | 2,247 | 35 | 4,631 | |
Intersegment Eliminations | GES | |||||
Reportable segments reconciliations: | |||||
Total revenue | (6,346) | (7,205) | (9,694) | (10,444) | |
Intersegment Eliminations | Pursuit | |||||
Reportable segments reconciliations: | |||||
Total revenue | (500) | (706) | |||
Corporate Eliminations | |||||
Reportable segments reconciliations: | |||||
Segment operating income | [2] | 17 | 16 | 33 | 32 |
Corporate | |||||
Reportable segments reconciliations: | |||||
Segment operating income | (2,535) | (2,920) | (4,752) | (5,461) | |
Restructuring recoveries (charges) | 10 | (137) | |||
Domestic Plans | Operating Segments | GES | |||||
Reportable segments reconciliations: | |||||
Total revenue | 241,239 | 242,031 | 445,107 | 499,242 | |
Segment operating income | 20,838 | 21,320 | 19,282 | 42,666 | |
Restructuring recoveries (charges) | (240) | (47) | (240) | (71) | |
International | Operating Segments | GES | |||||
Reportable segments reconciliations: | |||||
Total revenue | 80,429 | 85,283 | 147,615 | 149,182 | |
Segment operating income | 8,167 | 9,349 | 10,303 | 11,382 | |
Restructuring recoveries (charges) | $ (422) | $ (121) | $ (454) | $ (354) | |
[1] | We adopted ASU 2017-07 on January 1, 2018, which requires retrospective adoption. As a result, we recorded the nonservice cost component of net periodic benefit cost within other expense for the three and six months ended June 30, 2018, and we reclassified $0.2 million from operating expenses to other expense for the three months ended June 30, 2017 and $0.7 million for the six months ended June 30, 2017 to conform with current period presentation. Refer to Note 1 – Overview and Basis of Presentation for additional details on the impact of this adoption on our Condensed Consolidated Statements of Operations. | ||||
[2] | Corporate eliminations represent the elimination of depreciation expense recorded by Pursuit associated with previously eliminated intercompany profit realized by GES for renovations to Pursuit’s Banff Gondola. |
Segment Information - Reconci93
Segment Information - Reconciliation of Income Statement Items from Reportable Segments (Parenthetical) (Details) - USD ($) $ in Thousands | 3 Months Ended | 6 Months Ended | |||
Jun. 30, 2018 | Jun. 30, 2017 | Jun. 30, 2018 | Jun. 30, 2017 | ||
Segment Reporting Information [Line Items] | |||||
Other expense | [1] | $ 543 | $ 222 | $ 781 | $ 674 |
ASU 2017-07 | |||||
Segment Reporting Information [Line Items] | |||||
Other expense | $ 222 | $ 674 | |||
[1] | We adopted ASU 2017-07 on January 1, 2018, which requires retrospective adoption. As a result, we recorded the nonservice cost component of net periodic benefit cost within other expense for the three and six months ended June 30, 2018, and we reclassified $0.2 million from operating expenses to other expense for the three months ended June 30, 2017 and $0.7 million for the six months ended June 30, 2017 to conform with current period presentation. Refer to Note 1 – Overview and Basis of Presentation for additional details on the impact of this adoption on our Condensed Consolidated Statements of Operations. |
Common Stock Repurchases - Narr
Common Stock Repurchases - Narrative (Details) - USD ($) $ in Millions | 6 Months Ended | |
Jun. 30, 2018 | Jun. 30, 2017 | |
Common Stock Repurchases (Textual) [Abstract] | ||
Repurchased shares | 175,091 | |
Common stock purchased for treasury | $ 9.1 | |
Shares remain available for repurchase | 265,449 | |
Repurchase of common stock for employee tax withholding obligations amount, shares | 19,237 | 25,642 |
Repurchase of common stock for employee tax withholding obligations amount | $ 1 | $ 1.2 |