Financial Information about Industry Segments

12 Months Ended

Jun. 30, 2014

Segment Reporting [Abstract]

Financial Information about Industry Segments

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 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 $8.8 million in fiscal 2014, $9.7 million in fiscal 2013, and $11.9 million in fiscal 2012.

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 a segment.

The following table presents financial information by segment:

Years ended June 30,	2014			2013			2012
(In thousands)
Revenues
National media	$	1,065,898		$	1,095,195		$	1,060,385
Local media	402,810			376,145			316,302
Total revenues	$	1,468,708		$	1,471,340		$	1,376,687
Segment profit
National media	$	113,113		$	137,985		$	133,020
Local media	113,060			124,116			88,291
Unallocated corporate	(39,658		)	(51,267		)	(35,540		)
Income from operations	186,515			210,834			185,771
Interest expense, net	(12,176		)	(13,430		)	(12,896		)
Earnings before income taxes	$	174,339		$	197,404		$	172,875
Depreciation and amortization
National media	$	29,455		$	19,199		$	17,617
Local media	28,815			24,471			24,732
Unallocated corporate	1,658			1,680			1,977
Total depreciation and amortization	$	59,928		$	45,350		$	44,326
Assets
National media	$	1,422,855		$	1,454,225		$	1,332,505
Local media	996,935			587,611			589,096
Unallocated corporate	124,010			98,223			94,698
Total assets	$	2,543,800		$	2,140,059		$	2,016,299
Capital expenditures
National media	$	5,491		$	6,455		$	8,544
Local media	16,578			14,688			13,385
Unallocated corporate	2,753			4,826			13,789
Total capital expenditures	$	24,822		$	25,969		$	35,718