Revenue Recognition

6 Months Ended

Dec. 31, 2019

Revenue from Contract with Customer [Abstract]

11. Revenue Recognition

Meredith disaggregates revenue from contracts with customers by types of goods and services. A reconciliation of disaggregated revenue to segment revenue (as provided in Note 15) is as follows.



Three months ended December 31, 2019	National Media		Local Media		Intersegment Elimination			Total
(In millions)
Advertising related
Print	$	149.4	$	—	$	—		$	149.4
Non-political spot	—		89.5		—			89.5
Political spot	—		4.4		—			4.4
Digital	132.2		4.9		—			137.1
Third party sales	20.4		27.2		(0.7		)	46.9
Total advertising related	302.0		126.0		(0.7		)	427.3
Consumer related
Subscription	159.8		—		—			159.8
Retransmission	—		85.1		—			85.1
Newsstand	37.7		—		—			37.7
Affinity marketing	20.0		—		—			20.0
Licensing	24.4		—		—			24.4
Digital and other consumer driven	21.9		—		—			21.9
Total consumer related	263.8		85.1		—			348.9
Other
Projects based	15.1		—		—			15.1
Other	16.3		2.9		—			19.2
Total other	31.4		2.9		—			34.3
Total revenues	$	597.2	$	214.0	$	(0.7	)	$	810.5



Three Months Ended December 31, 2018	National Media		Local Media		Intersegment Elimination			Total
(In millions)
Advertising related
Print	$	167.4	$	—	$	—		$	167.4
Non-political spot	—		87.6		—			87.6
Political spot	—		65.8		—			65.8
Digital	122.9		4.0		—			126.9
Third party sales	16.1		28.7		(0.2		)	44.6
Total advertising related	306.4		186.1		(0.2		)	492.3
Consumer related
Subscription	192.0		—		—			192.0
Retransmission	—		74.1		—			74.1
Newsstand	43.5		—		—			43.5
Affinity marketing	18.3		—		—			18.3
Licensing	23.7		—		—			23.7
Digital and other consumer driven	16.6		—		—			16.6
Total consumer related	294.1		74.1		—			368.2
Other
Projects based	13.5		—		—			13.5
Other	2.2		2.2		—			4.4
Total other	15.7		2.2		—			17.9
Total revenues	$	616.2	$	262.4	$	(0.2	)	$	878.4



Six months ended December 31, 2019	National Media		Local Media		Intersegment Elimination			Total
(In millions)
Advertising related
Print	$	309.8	$	—	$	—		$	309.8
Non-political spot	—		166.3		—			166.3
Political spot	—		7.0		—			7.0
Digital	223.8		9.1		—			232.9
Third party sales	39.4		52.7		(1.2		)	90.9
Total advertising related	573.0		235.1		(1.2		)	806.9
Consumer related
Subscription	310.3		—		—			310.3
Retransmission	—		164.7		—			164.7
Newsstand	80.3		—		—			80.3
Affinity marketing	33.9		—		—			33.9
Licensing	44.4		—		—			44.4
Digital and other consumer driven	38.4		—		—			38.4
Total consumer related	507.3		164.7		—			672.0
Other
Projects based	29.5		—		—			29.5
Other	20.3		7.0		—			27.3
Total other	49.8		7.0		—			56.8
Total revenues	$	1,130.1	$	406.8	$	(1.2	)	$	1,535.7



Six Months Ended December 31, 2018	National Media		Local Media		Intersegment Elimination			Total
(In millions)
Advertising related
Print	$	352.6	$	—	$	—		$	352.6
Non-political spot	—		162.5		—			162.5
Political spot	—		101.9		—			101.9
Digital	207.8		7.9		—			215.7
Third party sales	33.2		52.7		(0.8		)	85.1
Total advertising related	593.6		325.0		(0.8		)	917.8
Consumer related
Subscription	352.7		—		—			352.7
Retransmission	—		147.4		—			147.4
Newsstand	82.6		—		—			82.6
Affinity marketing	37.2		—		—			37.2
Licensing	48.5		—		—			48.5
Digital and other consumer driven	27.6		—		—			27.6
Total consumer related	548.6		147.4		—			696.0
Other
Projects based	22.9		—		—			22.9
Other	11.7		4.4		—			16.1
Total other	34.6		4.4		—			39.0
Total revenues	$	1,176.8	$	476.8	$	(0.8	)	$	1,652.8

During the first quarter of fiscal 2020, management identified certain consumer related revenue that was incorrectly classified as other revenue in the fiscal 2019 consolidated financial statements. As such, management revised the fiscal 2019 condensed consolidated statement of earnings and related revenue note for the three and six months ended December 31, 2019, to report $9.9 million and $21.6 million revenue as consumer related revenue. The Company assessed the materiality of the revision both quantitatively and qualitatively and determined the correction to be immaterial to the Company’s prior period interim and annual consolidated financial statements.

Contract Balances

The timing of Meredith’s performance under its various contracts often differs from the timing of the customer’s payment, which results in the recognition of a contract asset or a contract liability. A contract asset is recognized when a good or service is transferred to a customer and the Company does not have the contractual right to bill for the related performance obligations. Due to the nature of its contacts, the Company does not have any significant contract assets. A contract liability is recognized when consideration is received from the customer prior to the transfer of goods or services. Current portion of contract liabilities were $458.9 million at June 30, 2019 and $428.3 million at December 31, 2019, and are presented as current portion of unearned revenues on the Condensed Consolidated Balance Sheets. Noncurrent contract liabilities were $318.6 million and $299.1 million at June 30, 2019 and December 31, 2019, respectively, and are reflected as unearned revenues on the Condensed Consolidated Balance Sheets. Revenue of $296.4 million recognized in the six-month period ended December 31, 2019, was in contract liabilities at the beginning of the period.

During the second quarter of fiscal 2020, the Company wrote-off $42.7 million of contract liabilities due to the discontinuation of Rachael Ray Every Day and Family Circle as subscription magazines. This amount was composed of balances at June 30, 2019, as well as newly acquired contracts during the first six months of fiscal 2020. In addition, the Company wrote off an offsetting $42.7 million of contract costs associated with the discontinued contracts. The contract liabilities were presented in the current portion of unearned revenues and

unearned revenues lines and the contract costs were presented in the current portion of subscription acquisition costs and subscription acquisition costs lines on the Condensed Consolidated Balance Sheets.