Financial Information about Industry Segments

12 Months Ended

Jun. 30, 2011

Segment Reporting [Abstract]

Financial Information about Industry Segments [Text Block]

Financial Information about Industry Segments

Meredith is a diversified media company focused primarily on the home and family marketplace. On the basis of products and services, the Company has established two reportable segments: national media and local media. The national media segment includes magazine publishing, integrated marketing, interactive media, brand licensing, database-related activities, and other related operations. The local media segment consists primarily of the operations of network-affiliated television stations. Virtually all of the Company's revenues are generated in the U.S. and substantially all of the assets reside within the U.S. There are no material intersegment transactions.

There are two principal financial measures reported to the chief executive officer (the chief operating decision maker) for use in assessing segment performance and allocating resources. Those measures are operating profit and earnings from continuing operations before interest, taxes, depreciation, and amortization (EBITDA). Operating profit for segment reporting, disclosed below, is revenues less operating costs and unallocated corporate expenses. Segment operating expenses include allocations of certain centrally incurred costs such as employee benefits, occupancy, information systems, accounting services, internal legal staff, and human resources administration. These costs are allocated based on actual usage or other appropriate methods, primarily number of employees. Unallocated corporate expenses are corporate overhead expenses not attributable to the operating groups. Nonoperating income (expense) and interest income and expense are not allocated to the segments. In accordance with authoritative guidance on disclosures about segments of an enterprise and related information, EBITDA is not presented below.

Significant non-cash items included in segment operating expenses other than depreciation and amortization of fixed and intangible assets is the local media impairment charge taken in fiscal 2009 of $294.5 million and the amortization of broadcast rights in the local media segment. Broadcast rights amortization totaled $17.1 million in fiscal 2011, $22.6 million in fiscal 2010, and $25.1 million in fiscal 2009.

Segment assets include intangible, fixed, and all other non-cash assets identified with each segment. Jointly used assets such as office buildings and information technology equipment are allocated to the segments by appropriate methods, primarily number of employees. Unallocated corporate assets consist primarily of cash and cash items, assets allocated to or identified with corporate staff departments, and other miscellaneous assets not assigned to one of the segments.

The following table presents financial information by segment:

Years ended June 30,	2011			2010			2009
(In thousands)
Revenues
National media	$	1,078,222		$	1,100,469		$	1,130,298
Local media	322,258			282,362			274,536
Total revenues	$	1,400,480		$	1,382,831		$	1,404,834
Operating profit
National media	$	179,628		$	170,161		$	154,023
Local media	87,852			52,910			(257,774		)
Unallocated corporate	(42,189		)	(37,949		)	(28,371		)
Income (loss) from operations	$	225,291		$	185,122		$	(132,122	)
Depreciation and amortization
National media	$	13,516		$	14,397		$	15,424
Local media	24,003			24,417			25,180
Unallocated corporate	2,026			2,075			1,969
Total depreciation and amortization	$	39,545		$	40,889		$	42,573
Assets
National media	$	998,829		$	992,574		$	964,615
Local media	595,633			609,218			603,659
Unallocated corporate	118,367			125,524			101,029
Total assets	$	1,712,829		$	1,727,316		$	1,669,303
Capital expenditures
National media	$	8,636		$	2,277		$	3,860
Local media	14,431			18,807			14,731
Unallocated corporate	6,839			3,637			4,884
Total capital expenditures	$	29,906		$	24,721		$	23,475