Financial Information about Industry Segments

12 Months Ended

Jun. 30, 2012

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, customer relationship marketing, digital and mobile 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. 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 amortization of broadcast rights in the local media segment. Broadcast rights amortization totaled $11.9 million in fiscal 2012, $17.1 million in fiscal 2011, and $22.6 million in fiscal 2010.

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,	2012			2011			2010
(In thousands)
Revenues
National media	$	1,060,385		$	1,078,222		$	1,100,469
Local media	316,302			322,258			282,362
Total revenues	$	1,376,687		$	1,400,480		$	1,382,831
Operating profit
National media	$	133,020		$	179,628		$	170,161
Local media	88,291			87,852			52,910
Unallocated corporate	(35,540		)	(42,189		)	(37,949		)
Income from operations	$	185,771		$	225,291		$	185,122
Depreciation and amortization
National media	$	17,617		$	13,516		$	14,397
Local media	24,732			24,003			24,417
Unallocated corporate	1,977			2,026			2,075
Total depreciation and amortization	$	44,326		$	39,545		$	40,889
Assets
National media	$	1,332,505		$	998,829		$	992,574
Local media	589,096			595,633			609,218
Unallocated corporate	94,698			118,367			125,524
Total assets	$	2,016,299		$	1,712,829		$	1,727,316
Capital expenditures
National media	$	8,544		$	8,636		$	2,277
Local media	13,385			14,431			18,807
Unallocated corporate	13,789			6,839			3,637
Total capital expenditures	$	35,718		$	29,906		$	24,721