Facility consolidation and asset impairment charges

For the years 2010-2012, the company recognized charges related to facility consolidation efforts. The company also recorded non-cash impairment charges to reduce the book value of goodwill, other intangible assets and long-lived assets. Impairment charges for certain minority-owned investments accounted for under the equity or cost methods were also recorded.

A summary of these charges by year is presented below:



In thousands, except per share amounts
	2012
	Pre-Tax Amount		After-Tax Amount		Per Share Amount^(a)
Facility consolidation and asset impairment charges:
Goodwill - Digital	$	90,053	$	86,553	$	0.37
Property, plant and equipment - Publishing	29,520		17,920		0.08
Other - Publishing	2,556		1,656		0.01
Total facility consolidation and asset impairment charges against operations	122,129		106,129		0.45
Non-operating charges:
Equity method investments	7,036		4,336		0.02
Total charges	$	129,165	$	110,465	$	0.47

(a)Total amounts may not sum due to rounding.



In thousands, except per share amounts
	2011
	Pre-Tax Amount		After-Tax Amount		Per Share Amount
Facility consolidation and asset impairment charges:
Property, plant and equipment - Publishing	$	17,085	$	10,282	$	0.04
Other - Publishing	10,158		7,261		0.03
Total facility consolidation and asset impairment charges against operations	27,243		17,543		0.07
Non-operating charges:
Equity method investments	15,739		9,539		0.04
Other investments	14,529		8,729		0.04
Total charges	$	57,511	$	35,811	$	0.15



In thousands, except per share amounts
	2010
	Pre-Tax Amount		After-Tax Amount		Per Share Amount^(a)
Facility consolidation and asset impairment charges:
Goodwill - Digital	$	10,932	$	10,810	$	0.04
Other intangible assets:
Publishing	16,930		12,359		0.05
Digital	1,603		1,006		—
Total other intangible assets	18,533		13,365		0.06
Property, plant and equipment:
Publishing	15,489		9,472		0.04
Broadcasting	3,764		2,321		0.01
Total property, plant and equipment	19,253		11,793		0.05
Other:
Publishing	3,301		2,025		0.01
Broadcasting	4,990		3,061		0.01
Total other	8,291		5,086		0.02
Total facility consolidation and asset impairment charges against operations	57,009		41,054		0.17
Non-operating charges:
Equity method investments	2,731		1,634		0.01
Total charges	$	59,740	$	42,688	$	0.18

(a)Total amounts may not sum due to rounding.

In connection with the required annual impairment test of goodwill and indefinite-lived intangibles, potential impairments were indicated in 2012 and 2010 for certain reporting units in the company’s Digital and Publishing Segments. The fair value of the reporting units was determined based on a multiple of earnings technique and/or a discounted cash flow technique. The company then undertook the next step in the impairment testing process by determining the fair value of assets and liabilities within these reporting units. The implied value was less than the carrying value and therefore the impairment charges were taken.

The impairment charge in 2010 for other intangible assets, principally a masthead, was required because revenue results from the underlying business had softened from what was expected at the time the assets were last valued. Fair value was determined using a relief-from-royalty method. Carrying values were reduced to fair value for an indefinite lived asset and for certain definite-lived assets in accordance with ASC Topic 350.

Facility consolidation plans led the company to recognize charges associated with revising the useful lives of certain assets over a shortened periods as well as shutdown costs. Charges were recognized in the years 2010-2012. Certain assets classified as held-for-sale in accordance with ASC Topic 360 resulted in charges being recognized in 2012 as the carrying values were reduced to equal the fair value less cost to dispose. These fair values were based on estimates of prices for similar assets.

During 2010-2012, carrying values of certain investments in which the company owns noncontrolling interests were written down to fair value because the businesses underlying the investments had experienced significant and sustained operating losses, leading the company to conclude that they were other than temporarily impaired.