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Acquisitions
9 Months Ended
Mar. 31, 2013
Business Combinations [Abstract]  
Acquisitions [Text Block]
Acquisitions

Effective October 1, 2012, Meredith acquired the remaining 49 percent of the outstanding stock of Living the Country Life, LLC. The results of Living the Country Life's operations have been included in the consolidated financial statements since that date. The cash purchase price was $1.4 million.

As a result of the acquisition, the assets and liabilities of Living the Country Life, consisting primarily of accounts receivable, identifiable intangible assets, accounts payable, and other accrued expenses are now reflected in the Company's Condensed Consolidated Balance Sheet. The condensed consolidated financial statements reflect the allocation of the purchase price to the assets acquired and liabilities assumed, based on their respective fair values.

The impact of the Living the Country Life acquisition is not material to the Company's results of operations; therefore, pro forma financial information has not been provided.

Effective May 15, 2012, Meredith purchased 100 percent of the outstanding stock of ShopNation Inc., an e-commerce website. During the first nine months of fiscal 2013, provisional amounts recorded to contingent consideration were decreased $1.3 million based on an updated preliminary valuation report and a deferred tax asset of $0.5 million was recorded, with a corresponding decrease to goodwill. The Company is in the process of obtaining a third-party valuation for intangible assets; thus, provisional measurements of intangible assets, goodwill, and deferred income tax balances have been used and are subject to change.

In conjunction with the acquisition of ShopNation, the Company recorded $6.4 million of contingent consideration at time of acquisition. The contingent consideration arrangement with ShopNation requires the Company to pay contingent payments should the acquired operations achieve certain operational and financial targets over the next three fiscal years, generally based on EBIT, as defined in the acquisition agreement. None of the contingent consideration is dependent on the continued employment of the sellers. We estimate the fair-value of the contingent consideration using a probability-weighted discounted cash flow model. The fair value is based on significant inputs not observable in the market and thus represents a Level 3 measurement as defined in Note 9. During the nine months ended March 31, 2013, the Company recognized a non-cash credit to operations of $2.5 million, reducing the estimated contingent consideration payable. This credit was recorded in the selling, general, and administrative expense line on the Consolidated Statements of Earnings.

Effective March 1, 2012, Meredith acquired 100 percent of the outstanding stock of Allrecipes.com, Inc. During the first nine months of fiscal 2013, based on an updated valuation report, provisional amounts recorded to the advertiser relationships intangible asset were decreased $2.5 million and trademarks were increased $2.9 million, with a corresponding decrease to goodwill.

Living the Country Life, LLC and ShopNation are subject to legal and regulatory requirements, including but not limited to those related to taxation, in each of the jurisdictions in which they operate. The Company has conducted a preliminary assessment of liabilities arising in each of these jurisdictions, and has recognized provisional amounts in its initial accounting for the acquisitions for all identified liabilities in accordance with the business combinations guidance. However, the Company is continuing its review of these matters during the measurement period, and if new information about facts and circumstances that existed at the acquisition date identifies adjustments to the liabilities initially recognized or any additional liabilities that existed at the acquisition date, the acquisition accounting will be revised to reflect the resulting adjustments to the provisional amounts initially recognized.