Business Segments

12 Months Ended

Apr. 30, 2013

Segment Reporting [Abstract]

Business Segments

 Note 10-Business Segments:

Prior to December 23, 2010, (the Restructuring Transaction date), the Company operated two reportable business segments: (1) Publishing and (2) Investment Management. The Publishing segment, the Company’s only reportable segment subsequent to the Restructuring Transaction date, produces investment periodicals and related publications (retail and institutional) in both print and electronic form, and includes copyright data fees for the Value Line Proprietary Ranking System information and other proprietary information. The Investment Management segment provided advisory services to the Value Line Funds, as well as institutional and individual accounts. The segments were differentiated by the products and services they offered. The accounting policies of the segments are the same as those described in the summary of significant accounting policies.

As more fully described in Note 1 - Organization and Summary of Significant Accounting Policies, the Company deconsolidated its investment management business on December 23, 2010 and therefore no longer reports the investment management operation as a separate business unit.  Although VLI continues to receive significant cash flows from these operations through its non-controlling investment in EAM, it no longer considers this to be a reportable business segment due to its lack of control over the operating and financial policies of EAM.  Accordingly, the Investment Management segment reflects activity only through the date of the Restructuring Transaction.

Disclosure of reportable segment information for the twelve months ended April 30, 2011 was as follows:

($ in thousands)	Publishing			Investment Management			Consolidated Total
Revenues from external customers	$	37,974		$	10,693		$	48,667
Intersegment revenues		7			-			7
Total revenues for reportable segments		37,981			10,693			48,674
Elimination of intersegment revenues		(7	)		-			(7	)
Total consolidated revenues	$	37,974		$	10,693		$	48,667
Depreciation and amortization	$	579		$	14		$	593
Depreciation related to corporate assets	$	(3	)		-		$	(3	)
Gain from deconsolidation of subsidiaries (1)	$	-		$	50,510		$	50,510
Income from securities transactions		-			6			6
Segment profit (loss) from operations (2)		8,984			(448	)		8,536
Profit for reportable segments	$	8,984		$	50,068		$	59,052
Revenues and profits interests in EAM Trust								2,355
Income from securities transactions related to corporate assets								59
Depreciation related to corporate assets								(3	)
Income before income taxes							$	61,463

(1) Represents the gain of $50,510,000 from deconsolidation of the asset management and Value Line Mutual Fund Distribution subsidiaries.

(2) Included in the Investment Management business segment in fiscal 2011 are expenses of $3,764,000 related to the Company’s restructure of its Investment Management business segment, $914,000 of expenses related to its exit lease obligation for the office space previously occupied by EAM LLC, and non-cash post-employment  compensation expense of $1,770,000  related to the value of the voting profits interest in EAM granted by VLI to a former employee of the Company who is presently the CEO of EAM.  Fiscal 2011 Investment Management segment expenses included the reversal of $1,767,000 of previously recorded expenses associated with the Provision for Settlement due to a change in estimated costs to administer the Fair Fund.

As of April 30, 2011, additional reportable segment information was as follows:

($ in thousands)	Assets		Expenditures for Segment Assets
Publishing	$	11,827	$	1,897
Investment Management		-		10
Corporate assets		75,976		-
Consolidated total	$	87,803	$	1,907