VIAD CORP, 10-Q filed on 11/1/2019
Quarterly Report
v3.19.3
Document and Entity Information - shares
9 Months Ended
Sep. 30, 2019
Oct. 25, 2019
Cover [Abstract]    
Entity Registrant Name VIAD CORP  
Entity Central Index Key 0000884219  
Document Type 10-Q  
Document Period End Date Sep. 30, 2019  
Amendment Flag false  
Document Fiscal Year Focus 2019  
Document Fiscal Period Focus Q3  
Current Fiscal Year End Date --12-31  
Entity Incorporation, State or Country Code DE  
Trading Symbol VVI  
Title of 12(b) Security Common Stock, $1.50 Par Value  
Security Exchange Name NYSE  
Entity Current Reporting Status Yes  
Entity Interactive Data Current Yes  
Entity Filer Category Large Accelerated Filer  
Entity Shell Company false  
Entity Small Business false  
Entity Emerging Growth Company false  
Entity File Number 001-11015  
Entity Tax Identification Number 36-1169950  
Entity Address, Address Line One 1850 North Central Avenue  
Entity Address, Address Line Two Suite 1900  
Entity Address, City or Town Phoenix  
Entity Address, State or Province AZ  
Entity Address, Postal Zip Code 85004-4565  
City Area Code 602  
Local Phone Number 207-1000  
Entity Common Stock, Shares Outstanding   20,326,404
Document Quarterly Report true  
Document Transition Report false  
v3.19.3
CONDENSED CONSOLIDATED BALANCE SHEETS (Unaudited) - USD ($)
$ in Thousands
Sep. 30, 2019
Dec. 31, 2018
Current assets    
Cash and cash equivalents $ 56,638 $ 44,893
Accounts receivable, net of allowances for doubtful accounts of $1,216 and $1,288, respectively 144,711 108,936
Inventories 16,323 16,629
Current contract costs 31,659 18,017
Other current assets 26,583 25,486
Total current assets 275,914 213,961
Property and equipment, net 486,533 333,847
Other investments and assets 42,503 42,910
Operating lease right-of-use assets 103,403  
Deferred income taxes 22,424 19,199
Goodwill 275,568 261,330
Other intangible assets, net 80,029 51,294
Total Assets 1,286,374 922,541
Current liabilities    
Accounts payable 89,389 71,927
Contract liabilities 62,260 33,476
Accrued compensation 27,996 22,668
Operating lease obligations 22,526  
Other current liabilities 44,597 32,258
Current portion of debt and finance lease obligations [1] 298,940 229,416
Total current liabilities 545,708 389,745
Long-term debt and finance lease obligations 25,295 705
Pension and postretirement benefits 25,574 26,636
Long-term operating lease obligations 82,630  
Other deferred items and liabilities 69,209 48,991
Total liabilities 748,416 466,077
Commitments and contingencies
Redeemable noncontrolling interest 5,431 5,909
Viad Corp stockholders’ equity:    
Common stock, $1.50 par value, 200,000,000 shares authorized, 24,934,981 shares issued and outstanding 37,402 37,402
Additional capital 574,039 575,339
Retained earnings 130,435 109,032
Unearned employee benefits and other   199
Accumulated other comprehensive loss (43,911) (47,975)
Common stock in treasury, at cost, 4,613,463 and 4,741,638 shares, respectively (232,928) (237,790)
Total Viad stockholders’ equity 465,037 436,207
Non-redeemable noncontrolling interest 67,490 14,348
Total stockholders’ equity 532,527 450,555
Total Liabilities and Stockholders’ Equity $ 1,286,374 $ 922,541
[1] Borrowings under the 2018 Credit Facility are classified as current because all borrowed amounts are due within one year
v3.19.3
CONDENSED CONSOLIDATED BALANCE SHEETS (Parenthetical) (Unaudited) - USD ($)
$ in Thousands
Sep. 30, 2019
Dec. 31, 2018
Statement Of Financial Position [Abstract]    
Allowance for doubtful accounts $ 1,216 $ 1,288
Common stock, par value $ 1.50 $ 1.50
Common stock, shares authorized 200,000,000 200,000,000
Common stock, shares issued 24,934,981 24,934,981
Common stock, shares outstanding 24,934,981 24,934,981
Treasury stock, shares 4,613,463 4,741,638
v3.19.3
CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS (Unaudited) - USD ($)
shares in Thousands, $ in Thousands
3 Months Ended 9 Months Ended
Sep. 30, 2019
Sep. 30, 2018
Sep. 30, 2019
Sep. 30, 2018
Revenue:        
Total revenue $ 362,488 $ 358,163 $ 1,050,361 $ 999,268
Costs and expenses:        
Business interruption gain   (35) (141) (602)
Corporate activities 2,680 3,777 7,795 8,529
Interest income (79) (101) (260) (238)
Interest expense 3,740 2,608 9,612 7,031
Multi-employer pension plan withdrawal     15,508  
Other expense 281 527 1,192 1,308
Restructuring charges 1,702 175 6,845 999
Legal settlement     8,500  
Impairment recoveries       (35)
Total costs and expenses 315,990 308,563 1,009,384 932,296
Income from continuing operations before income taxes 46,498 49,600 40,977 66,972
Income tax expense 11,891 10,806 10,861 15,282
Income from continuing operations 34,607 38,794 30,116 51,690
Income (loss) from discontinued operations (141) (246) 32 403
Net income 34,466 38,548 30,148 52,093
Net income attributable to non-redeemable noncontrolling interest (3,418) (1,287) (3,329) (890)
Net loss attributable to redeemable noncontrolling interest 368 128 644 289
Net income attributable to Viad $ 31,416 $ 37,389 $ 27,463 $ 51,492
Diluted income per common share:        
Continuing operations attributable to Viad common stockholders $ 1.54 $ 1.84 $ 1.33 $ 2.49
Discontinued operations attributable to Viad common stockholders (0.01) (0.01)   0.02
Net income attributable to Viad common stockholders $ 1.53 $ 1.83 $ 1.33 $ 2.51
Weighted-average outstanding and potentially dilutive common shares 20,311 20,387 20,267 20,427
Basic income per common share:        
Continuing operations attributable to Viad common stockholders $ 1.54 $ 1.85 $ 1.33 $ 2.50
Discontinued operations attributable to Viad common stockholders (0.01) (0.01)   0.02
Net income attributable to Viad common stockholders $ 1.53 $ 1.84 $ 1.33 $ 2.52
Weighted-average outstanding common shares 20,168 20,145 20,129 20,187
Dividends declared per common share $ 0.10 $ 0.10 $ 0.30 $ 0.30
Amounts attributable to Viad common stockholders        
Income from continuing operations $ 31,557 $ 37,635 $ 27,431 $ 51,089
Income (loss) from discontinued operations (141) (246) 32 403
Net income attributable to Viad 31,416 37,389 27,463 51,492
Services        
Revenue:        
Total revenue 300,446 300,087 898,746 860,358
Costs and expenses:        
Costs and expenses 256,296 254,638 825,806 792,775
Products        
Revenue:        
Total revenue 62,042 58,076 151,615 138,910
Costs and expenses:        
Costs and expenses $ 51,370 $ 46,974 $ 134,527 $ 122,529
v3.19.3
CONDENSED CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME (Unaudited) - USD ($)
$ in Thousands
3 Months Ended 9 Months Ended
Sep. 30, 2019
Sep. 30, 2018
Sep. 30, 2019
Sep. 30, 2018
Statement Of Income And Comprehensive Income [Abstract]        
Net income $ 34,466 $ 38,548 $ 30,148 $ 52,093
Other comprehensive income (loss):        
Unrealized foreign currency translation adjustments (5,229) 3,340 3,868 (7,864)
Change in net actuarial loss, net of tax [1] 83 (1,570) 302 (721)
Change in prior service cost, net of tax [1] (35) 186 (106) 6
Comprehensive income 29,285 40,504 34,212 43,514
Non-redeemable noncontrolling interest:        
Comprehensive income attributable to non-redeemable noncontrolling interest (3,418) (1,287) (3,329) (890)
Unrealized foreign currency translation adjustments (682)   94  
Redeemable noncontrolling interest:        
Comprehensive loss attributable to redeemable noncontrolling interest 368 128 644 289
Comprehensive income attributable to Viad $ 25,553 $ 39,345 $ 31,621 $ 42,913
[1] The tax effect on other comprehensive income (loss) is not significant.
v3.19.3
CONDENSED CONSOLIDATED STATEMENTS OF STOCKHOLDERS' EQUITY (Unaudited) - USD ($)
$ in Thousands
Total
Mountain Park Lodges
Common Stock
Additional Capital
Retained Earnings
Unearned Employee Benefits and Other
Accumulated Other Comprehensive Income (Loss)
Common Stock in Treasury
Total Viad Equity
Non-Redeemable Non-Controlling Interest
Non-Redeemable Non-Controlling Interest
Mountain Park Lodges
Beginning Balance at Dec. 31, 2017 $ 442,937   $ 37,402 $ 574,458 $ 65,836 $ 218 $ (22,568) $ (226,215) $ 429,131 $ 13,806  
Increase (Decrease) in Stockholders' Equity [Roll Forward]                      
Net income (loss) (9,751)       (9,387)       (9,387) (364)  
Dividends on common stock ($0.10 per share) (2,046)       (2,046)       (2,046)    
Payment of payroll taxes on stock-based compensation through shares withheld (868)             (868) (868)    
Employee benefit plans 1,123     (2,014)       3,137 1,123    
Share-based compensation - equity awards 815     815         815    
Unrealized foreign currency translation adjustment, net of tax (3,109)           (3,109)   (3,109)    
Amortization of net actuarial loss, net of tax 629           629   629    
Amortization of prior service cost, net of tax (184)           (184)   (184)    
Adoption of ASU | ASU 2016-01         616   (616)        
Other, net (67)     (36) (19) (11)   (1) (67)    
Ending Balance at Mar. 31, 2018 429,479   37,402 573,223 55,000 207 (25,848) (223,947) 416,037 13,442  
Beginning Balance at Dec. 31, 2017 442,937   37,402 574,458 65,836 218 (22,568) (226,215) 429,131 13,806  
Increase (Decrease) in Stockholders' Equity [Roll Forward]                      
Amortization of net actuarial loss, net of tax [1] (721)                    
Amortization of prior service cost, net of tax [1] 6                    
Adoption of ASU | ASU 2016-01 [2]             (616)        
Ending Balance at Sep. 30, 2018 478,064   37,402 575,058 113,381 234 (31,763) (230,944) 463,368 14,696  
Beginning Balance at Mar. 31, 2018 429,479   37,402 573,223 55,000 207 (25,848) (223,947) 416,037 13,442  
Increase (Decrease) in Stockholders' Equity [Roll Forward]                      
Net income (loss) 23,457       23,490       23,490 (33)  
Dividends on common stock ($0.10 per share) (2,049)       (2,049)       (2,049)    
Payment of payroll taxes on stock-based compensation through shares withheld (156)             (156) (156)    
Common stock purchased for treasury (9,061)             (9,061) (9,061)    
Employee benefit plans 1,405     (71)       1,476 1,405    
Share-based compensation - equity awards 952     952         952    
Unrealized foreign currency translation adjustment, net of tax (8,095)           (8,095)   (8,095)    
Amortization of net actuarial loss, net of tax 220           220   220    
Amortization of prior service cost, net of tax 4           4   4    
Other, net 25       17 7   1 25    
Ending Balance at Jun. 30, 2018 436,181   37,402 574,104 76,458 214 (33,719) (231,687) 422,772 13,409  
Increase (Decrease) in Stockholders' Equity [Roll Forward]                      
Net income (loss) 38,676       37,389       37,389 1,287  
Dividends on common stock ($0.10 per share) (2,033)       (2,033)       (2,033)    
Payment of payroll taxes on stock-based compensation through shares withheld (155)             (155) (155)    
Employee benefit plans 1,156     259       897 1,156    
Share-based compensation - equity awards 679     679         679    
Unrealized foreign currency translation adjustment, net of tax 3,340           3,340   3,340    
Amortization of net actuarial loss, net of tax (1,570) [1]           (1,570)   (1,570)    
Amortization of prior service cost, net of tax 186 [1]           186   186    
Adoption of ASU | Accounting Standards Update 2018-02 1,680       1,680       1,680    
Other, net (76)     16 (113) 20   1 (76)    
Ending Balance at Sep. 30, 2018 478,064   37,402 575,058 113,381 234 (31,763) (230,944) 463,368 14,696  
Beginning Balance at Dec. 31, 2018 450,555   37,402 575,339 109,032 199 (47,975) (237,790) 436,207 14,348  
Increase (Decrease) in Stockholders' Equity [Roll Forward]                      
Net income (loss) (18,197)       (17,777)       (17,777) (420)  
Dividends on common stock ($0.10 per share) (2,028)       (2,028)       (2,028)    
Payment of payroll taxes on stock-based compensation through shares withheld (2,905)             (2,905) (2,905)    
Employee benefit plans 1,220     (4,302)       5,522 1,220    
Share-based compensation - equity awards 780     780         780    
Unrealized foreign currency translation adjustment, net of tax 4,780           4,780   4,780    
Amortization of net actuarial loss, net of tax 120           120   120    
Amortization of prior service cost, net of tax (35)           (35)   (35)    
Other, net 41     16   24   1 41    
Ending Balance at Mar. 31, 2019 434,331   37,402 571,833 89,227 223 (43,110) (235,172) 420,403 13,928  
Beginning Balance at Dec. 31, 2018 450,555   37,402 575,339 109,032 199 (47,975) (237,790) 436,207 14,348  
Increase (Decrease) in Stockholders' Equity [Roll Forward]                      
Amortization of net actuarial loss, net of tax [1] 302                    
Amortization of prior service cost, net of tax [1] (106)                    
Ending Balance at Sep. 30, 2019 532,527   37,402 574,039 130,435   (43,911) (232,928) 465,037 67,490  
Beginning Balance at Mar. 31, 2019 434,331   37,402 571,833 89,227 223 (43,110) (235,172) 420,403 13,928  
Increase (Decrease) in Stockholders' Equity [Roll Forward]                      
Net income (loss) 14,155       13,824       13,824 331  
Dividends on common stock ($0.10 per share) (2,006)       (2,006)       (2,006)    
Payment of payroll taxes on stock-based compensation through shares withheld (89)             (89) (89)    
Employee benefit plans 1,602     301       1,301 1,602    
Share-based compensation - equity awards 781     781         781    
Unrealized foreign currency translation adjustment, net of tax 5,093           4,317   4,317 776  
Amortization of net actuarial loss, net of tax 99           99   99    
Amortization of prior service cost, net of tax (36)           (36)   (36)    
Acquisition of Mountain Park Lodges   $ 49,711                 $ 49,711
Other, net 14     16   $ (223)   221 14    
Ending Balance at Jun. 30, 2019 503,655   37,402 572,931 101,045   (38,730) (233,739) 438,909 64,746  
Increase (Decrease) in Stockholders' Equity [Roll Forward]                      
Net income (loss) 34,834       31,416       31,416 3,418  
Dividends on common stock ($0.10 per share) (2,026)       (2,026)       (2,026)    
Payment of payroll taxes on stock-based compensation through shares withheld (25)             (25) (25)    
Employee benefit plans 1,271     212       1,059 1,271    
Share-based compensation - equity awards 938     938         938    
Unrealized foreign currency translation adjustment, net of tax (5,911)           (5,229)   (5,229) (682)  
Amortization of net actuarial loss, net of tax 83 [1]           83   83    
Amortization of prior service cost, net of tax (35) [1]           (35)   (35)    
Acquisition of Mountain Park Lodges   $ 8                 $ 8
Other, net (265)     (42)       (223) (265)    
Ending Balance at Sep. 30, 2019 $ 532,527   $ 37,402 $ 574,039 $ 130,435   $ (43,911) $ (232,928) $ 465,037 $ 67,490  
[1] The tax effect on other comprehensive income (loss) is not significant.
[2] Upon the adoption of ASU 2016-01, Financial Instruments – Overall: Recognition and Measurement of Financial Assets and Financial Liabilities, we recorded a cumulative-effect adjustment from unrealized gains on investments to beginning retained earnings.
v3.19.3
CONDENSED CONSOLIDATED STATEMENTS OF STOCKHOLDERS' EQUITY (Parenthetical) (Unaudited) - $ / shares
3 Months Ended
Sep. 30, 2019
Jun. 30, 2019
Mar. 31, 2019
Sep. 30, 2018
Jun. 30, 2018
Mar. 31, 2018
Statement Of Stockholders Equity [Abstract]            
Dividends on common stock per share $ 0.10 $ 0.10 $ 0.10 $ 0.10 $ 0.10 $ 0.10
v3.19.3
CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS (Unaudited) - USD ($)
$ in Thousands
9 Months Ended
Sep. 30, 2019
Sep. 30, 2018
Cash flows from operating activities    
Net income $ 30,148 $ 52,093
Adjustments to reconcile net income to net cash provided by operating activities:    
Depreciation and amortization 44,061 44,364
Deferred income taxes 5,261 3,182
Income from discontinued operations (32) (403)
Restructuring charges 6,845 999
Legal settlement 8,500  
Impairment recoveries   (35)
Gains on dispositions of property and other assets (938) (135)
Share-based compensation expense 6,448 5,056
Multi-employer pension plan withdrawal 15,508  
Other non-cash items, net 2,772 3,553
Change in operating assets and liabilities (excluding the impact of acquisitions):    
Receivables (37,028) (21,289)
Inventories 389 (2,792)
Current contract costs (13,929) (11,928)
Accounts payable 20,121 12,972
Accrued compensation 2,308 (12,275)
Contract liabilities 29,177 28,045
Payments on operating lease obligations (20,853)  
Other assets and liabilities, net 2,382 203
Net cash provided by operating activities 101,140 101,610
Cash flows from investing activities    
Capital expenditures (60,868) (64,968)
Cash paid for acquired businesses, net (90,992) (4,628)
Proceeds from dispositions of property and other assets 1,022 1,320
Net cash used in investing activities (150,838) (68,276)
Cash flows from financing activities    
Proceeds from borrowings 170,459 101,336
Payments on debt and finance lease obligations (99,340) (113,429)
Dividends paid on common stock (6,060) (6,128)
Payment of payroll taxes on stock-based compensation through shares withheld or repurchased (3,019) (1,179)
Common stock purchased for treasury   (9,061)
Proceeds from exercise of stock options 92 84
Net cash provided by (used in) financing activities 62,132 (28,377)
Effect of exchange rate changes on cash and cash equivalents (689) (3,210)
Net change in cash and cash equivalents 11,745 1,747
Cash and cash equivalents, beginning of year 44,893 53,723
Cash and cash equivalents, end of period $ 56,638 $ 55,470
v3.19.3
Overview and Basis of Presentation
9 Months Ended
Sep. 30, 2019
Organization Consolidation And Presentation Of Financial Statements [Abstract]  
Overview and Basis of Presentation

Note 1. Overview and Basis of Presentation

Nature of Business

We are an international experiential services company with operations principally in the United States, Canada, the United Kingdom, continental Europe, and the United Arab Emirates. We are committed to providing unforgettable experiences to our clients and guests. We operate through three reportable business segments: GES North America, GES EMEA (collectively, “GES”), and Pursuit.

GES

GES is a global, full-service live events company offering a comprehensive range of services to the world’s leading brands and event organizers. GES’ clients include event organizers and corporate brand marketers. Event organizers schedule and run events from start to finish. Corporate brand marketers include exhibitors and domestic and international corporations that want to promote their brands, services and innovations, feature new products, and build business relationships. GES serves corporate brand marketers when they exhibit at shows and when GES is engaged to manage their global exhibit program or produce their proprietary corporate events.

Services and Products Offered

GES provides a full suite of services and products for event organizers and corporate brand marketers through the following lines of business:

 

Core Services. GES provides official contracting services and products, including the design and production of experiences, material handling, rigging, electrical, and other on-site event services.

 

Event Technology. GES offers a comprehensive range of event technology services, including event accommodation solutions, registration and data analytics, and event management tools.

 

Audio-Visual. GES offers a variety of high-impact multi-media services and technology, including video production, lighting design, digital studio services, entertainment services and talent coordination, projection mapping, and computer rental and support.

 

Markets Served

GES provides the above services and products across four live event markets: Exhibitions, Conferences, Corporate Events, and Consumer Events (collectively, “Live Events”).

 

Exhibitions facilitate business-to-business and business-to-consumer sales and marketing.

 

Conferences facilitate attendee education and may also include an expo or trade show to further facilitate attendee education and to facilitate business-to-business and business-to-consumer sales and marketing.  

 

Corporate events facilitate attendee education of the sponsoring company’s products or product ecosystem.  

 

Consumer events entertain, educate, or create an experience, typically around a specific genre.

Pursuit

Pursuit is a collection of inspiring and unforgettable travel experiences that includes world-class recreational attractions, unique hotels and lodges, food and beverage, retail, sightseeing, and ground transportation services.

Services and Products Offered

Pursuit comprises four lines of business: Attractions, including food and beverage services and retail operations; Hospitality, including food and beverage services and retail operations; Transportation; and Travel Planning. Services offered by these lines of business (or a subset of these) include admissions, accommodations, transportation, and travel planning. Products offered include food and beverage and retail operations.

 

Markets Served

Pursuit provides the above services and products across the following geographic markets:

 

The Banff Jasper Collection is a leading travel and tourism provider in the Canadian Rockies in Alberta, Canada with two lodging properties in Banff National Park, eight lodging properties in Jasper National Park, including the recently acquired Mountain Park Lodges, five world-class recreational attractions, food and beverage services, retail operations, sightseeing and transportation services.

 

The Alaska Collection is a leading travel and tourism provider in Alaska with two lodging properties and a sightseeing excursion in Denali National Park and Preserve, a lodge in Talkeetna, Alaska’s top-rated wildlife and glacier cruise, and two lodging properties located near Kenai Fjords National Park. The Alaska Collection also provides food and beverage services and retail operations.

 

The Glacier Park Collection is an operator of nine lodging properties, food and beverage services, and retail operations in and around Glacier National Park in Montana and Waterton Lakes National Park in Alberta, Canada, with a leading share of rooms in the Glacier Park market.

 

FlyOver is a recreational attraction that provides a virtual flight ride experience that combines motion seating, audio-visual media, and special effects including wind, scents, and mist to provide a true flying experience for guests. Our FlyOver attractions include: FlyOver Canada; FlyOver Iceland (Opened August 2019); FlyOver Las Vegas (expected opening in 2021); and FlyOver Toronto (expected opening in 2022).

 

Pursuit announced a plan for a new geothermal lagoon attraction in Iceland. It will be located on an oceanfront lot just outside downtown Reykjavik. We expect to open this new attraction in 2021.

Basis of Presentation

The accompanying unaudited condensed consolidated financial statements were prepared in accordance with accounting principles generally accepted in the United States of America (“GAAP”) and with the instructions to Form 10-Q and Article 10 of Regulation S-X for interim financial information. Accordingly, these financial statements do not include all of the information required by GAAP or SEC rules and regulations for complete financial statements. These financial statements reflect all adjustments (consisting of normal recurring adjustments) necessary for a fair presentation of the results for the interim periods presented. Interim results are not necessarily indicative of the results for the full year. These unaudited condensed consolidated financial statements should be read in conjunction with our Annual Report on Form 10-K for the year ended December 31, 2018, filed with the SEC on February 27, 2019 (“2018 Form 10-K”).

The condensed consolidated financial statements include the accounts of Viad and its subsidiaries. We have eliminated all significant intercompany account balances and transactions in consolidation.

Impact of Recent Accounting Pronouncements

The following table provides a brief description of recent accounting pronouncements:

 

Standard

 

Description

 

Date of adoption

 

Effect on the financial statements

Standards Not Yet Adopted

ASU 2016-13, Financial Instruments – Credit Losses (Topic 326) - Measurement of Credit Losses on Financial Instruments

 

The amendment eliminates the incurred credit loss impairment methodology in current GAAP and replaces it with an expected credit loss concept based on historical experience, current conditions, and reasonable and supportable forecasts.

 

Subsequent to the issuance of ASU 2016-13, the FASB issued additional amendments which do not change the core principle of the guidance stated in ASU 2016-13. Rather, they are intended to clarify and improve understanding of certain topics included within the credit losses standard.

 

January 1, 2020

 

We are currently evaluating the potential impact of the adoption of this new guidance on our consolidated financial statements. We will be required to use a forward-looking expected credit loss model for trade receivables. Adoption of this new standard will be applied using the modified retrospective approach through a cumulative-effect adjustment to retained earnings as of the effective date in an amount necessary to adjust our current credit loss methodology to equal the current estimate of expected losses on financial assets held at that date. We do not expect this new guidance to have a material impact on our consolidated financial statements.

 

Standard

 

Description

 

Date of adoption

 

Effect on the financial statements

Standards Recently Adopted

ASU 2018-15, Intangibles – Goodwill and Other – Internal-Use Software (Subtopic 350-40) Customer’s Accounting for Implementation Costs Incurred in a Cloud Computing Arrangement That Is a Service Contract

 

The amendment aligns the requirements for capitalizing implementation costs incurred in a hosting arrangement that is a service contract with the requirements for capitalizing implementation costs incurred to develop or obtain internal-use software. The amendment also requires an entity to expense the capitalized implementation costs of a hosting arrangement that is a service contract over the term of the hosting arrangement. Early adoption is permitted and may be applied on either a retrospective or prospective basis.

 

September 30, 2019

 

We early adopted this new guidance on a retrospective basis and determined it did not have a material impact on our consolidated financial statements.

ASU 2016-02, Leases (Topic 842)

 

The amendment increases transparency and comparability by requiring the recognition of a right-of-use asset and a lease liability on the balance sheet. The standard also requires more detailed disclosures to enable users of financial statements to understand the nature, amount, timing, and uncertainty of cash flows arising from leases.

 

January 1, 2019

 

We adopted ASU 2016-02 and its related amendments (collectively, “Topic 842”) on January 1, 2019 using the optional transition method. Under this method, a cumulative adjustment to retained earnings is recorded, if any, and prior periods are not restated. We determined there was no cumulative effect adjustment to retained earnings on January 1, 2019.

 

The adoption of Topic 842 did not have a material impact on our Consolidated Statement of Operations. The most significant impact related to facility and equipment leases, which were previously recorded as operating leases. Upon adoption as of January 1, 2019, we recognized an additional right-of-use asset and lease liability of $59 million on the balance sheet. The existing deferred rent liabilities balance, resulting from historical straight-lining of operating leases, was reclassified upon adoption to reduce the measurement of leased assets. Refer to our Leases Significant Accounting Policy immediately following this table and Note 19 - Leases and Other for additional information.

 

 

 

Significant Accounting Policies

Use of Estimates

The preparation of financial statements in conformity with GAAP requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities at the date of the financial statements and the reported amounts of revenue and expenses during the reported period. Estimates and assumptions are used in accounting for, among other things: the fair value of our reporting units used to perform annual impairment testing of recorded goodwill; allowances for uncollectible accounts receivable; provisions for income taxes, including uncertain tax positions; valuation allowances related to deferred tax assets; liabilities for losses related to self-insured liability claims; liabilities for losses related to environmental remediation obligations; sublease income associated with restructuring liabilities; assumptions used to measure pension and postretirement benefit costs and obligations; assumptions used to determine share-based compensation costs under the fair value method; assumptions used to determine the redemption value of redeemable noncontrolling interests; and the allocation of purchase price of acquired businesses. Actual results could differ from these and other estimates.

Revenue Recognition

Revenue is measured based on a specified amount of consideration in a contract with a customer, net of commissions paid to customers and amounts collected on behalf of third parties. We recognize revenue when a performance obligation is satisfied by transferring control of a product or service to a customer.

GES’ service revenue is primarily derived through its comprehensive range of services to event organizers and corporate brand marketers including Core Services, Event Technology, and Audio-Visual. GES’ service revenue is earned over time over the duration of the exhibition, conference, or corporate event, which generally lasts one to three days; however, we recognize service revenue at the close of the event when we have the right to invoice. GES’ product revenue is derived from the build of exhibits and environments and graphics. GES’ product revenue is recognized at a point in time upon delivery of the product.

Pursuit’s service revenue is derived through its admissions, accommodations, transportation, and travel planning services. Pursuit’s product revenue is derived through food and beverage and retail sales. Pursuit’s revenue is recognized at the time services are performed or upon delivery of the product. Pursuit’s service revenue is recognized over time as the customer simultaneously receives and consumes the benefits. Pursuit’s product revenue is recognized at a point in time.

Noncontrolling Interests – Non-redeemable and Redeemable

Non-redeemable noncontrolling interest represents the portion of equity in a subsidiary that is not attributable, directly or indirectly, to us. Our non-redeemable noncontrolling interest relates to the 20% equity ownership interest that we do not own in Glacier Park, Inc. and the 40% equity interest that we do not own in the recently acquired Mountain Park Lodges. We report non-redeemable noncontrolling interest within stockholders’ equity in the Condensed Consolidated Balance Sheets. The amount of consolidated net income or loss attributable to Viad and the non-redeemable noncontrolling interest is presented in the Condensed Consolidated Statements of Operations.  

Noncontrolling interests with redemption features that are not solely within our control are considered redeemable noncontrolling interests. Our redeemable noncontrolling interest relates to our 54.5% equity ownership interest in Esja Attractions ehf. (“Esja”). The Esja shareholders agreement contains a put option that gives the minority Esja shareholders the right to sell (or “put”) their Esja shares to us based on a calculated formula within a predefined term. This redeemable noncontrolling interest is considered temporary equity and we report it between liabilities and stockholders’ equity in the Condensed Consolidated Balance Sheets. The amount of the net income or loss attributable to redeemable noncontrolling interests is recorded in the Condensed Consolidated Statements of Operations and the accretion of the redemption value is recorded as an adjustment to retained earnings and is included in our income per share. Refer to Note 21 – Redeemable Noncontrolling Interest for additional information.

Leases

We adopted Topic 842 on January 1, 2019, which requires that we recognize a right-of-use (“ROU”) asset and lease liability on the balance sheet, and requires lessees to classify leases as either finance or operating leases. The classification of the lease determines whether the lease expense is recognized on an effective interest method basis (finance lease) or on a straight-line basis (operating lease) over the lease term. In determining whether an agreement contains a lease, we consider if we have a right to control the use of the underlying asset during the lease term in exchange for an obligation to make lease payments arising from the lease. We recognize ROU assets and lease liabilities at commencement date, which is when the underlying asset is available for use to a lessee, based on the present value of lease payments over the lease term.

Our operating and finance leases are primarily facility, equipment, and land leases. Our facility leases comprise mainly manufacturing facilities, sales and design facilities, offices, storage and/or warehouses, and truck marshaling yards. These facility leases generally have lease terms ranging up to 25 years. Our equipment leases comprise mainly vehicles, hardware, and office equipment, each with various lease terms. Our land leases comprise mainly leases in Canada and Iceland on which our hotels or attractions are located and have lease terms ranging up to 42 years.

We made the accounting policy election not to recognize ROU assets and lease liabilities for leases with a term of twelve months or less. We elected to apply the package of practical expedients permitted under Topic 842 transition guidance, which among other things, allows us to carry forward our historical lease classifications. We also elected the practical expedient to not separate non-lease components from lease components for all asset classes, and payments associated with fixed non-lease components are included in measuring the ROU asset and lease liability.

If a lease contains a renewal option that is reasonably certain to be exercised, then the lease term includes the optional periods in measuring a ROU asset and lease liability. Variable leases and variable non-lease components are not included in the calculation of the ROU asset and corresponding lease liability. For facility leases, variable lease costs include the costs of common area maintenance, taxes, and insurance for which we pay our lessors an estimate that is adjusted to actual expense on a quarterly or annual basis depending on the underlying contract terms. These variable lease payments are expensed as incurred. Upon the adoption of Topic 842, our accounting for finance leases, previously referred to as capital leases, remains substantially unchanged from prior guidance. Our lease agreements do not contain any significant residual value guarantees or restrictive covenants.

Substantially all of our lease agreements do not specify an implicit borrowing rate, and as such, we utilize an incremental borrowing rate based on lease term and country, in order to calculate the present value of our future lease payments. The discount rate represents a risk-adjusted rate on a secured basis, and is the expected rate at which we would borrow funds to satisfy the scheduled lease liability payment streams commensurate with the lease term and the country. On January 1, 2019, the discount rate used on existing leases at adoption was extrapolated based on the remaining lease term and the country using available data as of that date.  For new or renewed leases starting in 2019, the discount rate is determined using available data at lease commencement and based on the lease term and country including any reasonably certain renewal periods.

We are also a lessor to third party tenants who either lease certain portions of facilities that we own or sublease certain portions of facilities that we lease. Lease income from owned facilities is recorded as rental income and sublease income from leased facilities is recorded against lease expense in the Condensed Consolidated Statements of Operations. All of our leases for which we are the lessor are classified as operating leases under Topic 842.

v3.19.3
Revenue and Related Contract Costs and Contract Liabilities
9 Months Ended
Sep. 30, 2019
Revenue From Contract With Customer [Abstract]  
Revenue and Related Contract Costs and Contract Liabilities

Note 2. Revenue and Related Contract Costs and Contract Liabilities

GES’ performance obligations consist of services or product(s) outlined in a contract. While multi-year contracts are often signed for recurring events, the obligations for each occurrence are well defined and conclude upon the occurrence of each event. The obligations are typically the provision of services and/or sale of a product in connection with an exhibition, conference, or other event. Revenue for services is recognized when we have a right to invoice at the close of the exhibition, conference, or corporate event, which typically lasts one to three days. Revenue for consumer events is recognized over the duration of the event. Revenue for products is recognized either upon delivery to the customer’s location, upon delivery to an event that we are serving, or when we have the right to invoice, generally at the close of the exhibition, conference, or corporate event. Payment terms are generally within 30-60 days and contain no significant financing components.

Pursuit’s performance obligations are short-term in nature. They include the provision of a hotel room, an attraction admission, a chartered or ticketed bus or van ride, the fulfillment of travel planning itineraries, and/or the sale of food, beverage, or retail products. Revenue is recognized when the service has been provided or the product has been delivered. When credit is extended, payment terms are generally within 30 days and contain no significant financing components.

Contract Liabilities

GES and Pursuit typically receive customer deposits prior to transferring the related product or service to the customer. These deposits are recorded as a contract liability and are recognized as revenue upon satisfaction of the related contract performance obligation(s). GES also provides customer rebates and volume discounts to certain event organizers that are recorded as contract liabilities and are recognized as a reduction of revenue. These amounts are included in the Condensed Consolidated Balance Sheets under the captions “Contract liabilities” and “Other deferred items and liabilities.”

Changes to contract liabilities are as follows:

(in thousands)

 

 

 

 

Balance at December 31, 2018

 

$

35,600

 

Cash additions

 

 

150,566

 

Revenue recognized

 

 

(123,330

)

Foreign exchange translation adjustment

 

 

(451

)

Balance at September 30, 2019

 

$

62,385

 

Contract Costs

GES capitalizes certain incremental costs incurred in obtaining and fulfilling contracts. Capitalized costs principally relate to direct costs of materials and services incurred in fulfilling services of future exhibitions, conferences, and events, and also include up-front incentives and commissions incurred upon contract signing. Costs associated with preliminary contract activities (i.e. proposal activities) are expensed as incurred. Capitalized contract costs are expensed upon the transfer of the related goods or services and are included in cost of services or cost of products, as applicable. The deferred incremental costs of obtaining and fulfilling contracts are included in the Condensed Consolidated Balance Sheets under the captions “Current contract costs” and “Other investments and assets.”

 

Changes to contract costs are as follows:

(in thousands)

 

 

 

 

Balance at December 31, 2018

 

$

21,478

 

Additions

 

 

58,330

 

Expenses

 

 

(44,666

)

Cancelled

 

 

(45

)

Foreign exchange translation adjustment

 

 

(263

)

Balance at September 30, 2019

 

$

34,834

 

As of September 30, 2019, capitalized contract costs consisted of $2.4 million to obtain contracts and $32.4 million to fulfill contracts. We did not recognize an impairment loss with respect to capitalized contract costs during the three and nine months ended September 30, 2019 or 2018.

Disaggregation of Revenue

The following tables disaggregate GES and Pursuit revenue by major product line, timing of revenue recognition, and markets served:

GES

 

 

Three Months Ended September 30, 2019

 

(in thousands)

 

GES North America(1)

 

 

GES EMEA(1)

 

 

Intersegment Eliminations

 

 

Total

 

Services:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Core services

 

$

155,581

 

 

$

22,425

 

 

$

 

 

$

178,006

 

Audio-visual

 

 

18,742

 

 

 

4,402

 

 

 

 

 

 

23,144

 

Event technology

 

 

4,760

 

 

 

1,414

 

 

 

 

 

 

6,174

 

Intersegment eliminations

 

 

 

 

 

 

 

 

(5,724

)

 

 

(5,724

)

Total services

 

 

179,083

 

 

 

28,241

 

 

 

(5,724

)

 

 

201,600

 

Products:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Core products

 

 

12,900

 

 

 

12,945

 

 

 

 

 

 

25,845

 

Total revenue

 

$

191,983

 

 

$

41,186

 

 

$

(5,724

)

 

$

227,445

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Timing of revenue recognition:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Services transferred over time

 

$

179,083

 

 

$

28,241

 

 

$

(5,724

)

 

$

201,600

 

Products transferred over time(2)

 

 

10,558

 

 

 

2,305

 

 

 

 

 

 

12,863

 

Products transferred at a point in time

 

 

2,342

 

 

 

10,640

 

 

 

 

 

 

12,982

 

Total revenue

 

$

191,983

 

 

$

41,186

 

 

$

(5,724

)

 

$

227,445

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Markets:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Exhibitions

 

$

89,088

 

 

$

29,519

 

 

$

 

 

$

118,607

 

Conferences

 

 

56,205

 

 

 

6,320

 

 

 

 

 

 

62,525

 

Corporate events

 

 

41,205

 

 

 

5,147

 

 

 

 

 

 

46,352

 

Consumer events

 

 

5,485

 

 

 

200

 

 

 

 

 

 

5,685

 

Intersegment eliminations

 

 

 

 

 

 

 

 

(5,724

)

 

 

(5,724

)

Total revenue

 

$

191,983

 

 

$

41,186

 

 

$

(5,724

)

 

$

227,445

 

(1)

During the first quarter of 2019, we realigned GES’ organizational structure. As a result, we changed GES’ reportable segments to reflect how our chief operating decision maker regularly reviews and makes decisions regarding the allocation of resources. Accordingly, GES’ new reportable segments are GES North America and GES EMEA.

(2)

GES’ graphics product revenue is recognized over time as it is considered a part of the single performance obligation satisfied over time.

 

 

 

Nine Months Ended September 30, 2019

 

(in thousands)

 

GES North America(1)

 

 

GES EMEA(1)

 

 

Intersegment Eliminations

 

 

Total

 

Services:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Core services

 

$

563,566

 

 

$

95,309

 

 

$

 

 

$

658,875

 

Audio-visual

 

 

61,323

 

 

 

15,171

 

 

 

 

 

 

76,494

 

Event technology

 

 

23,368

 

 

 

6,501

 

 

 

 

 

 

29,869

 

Intersegment eliminations

 

 

 

 

 

 

 

 

(14,731

)

 

 

(14,731

)

Total services

 

 

648,257

 

 

 

116,981

 

 

 

(14,731

)

 

 

750,507

 

Products:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Core products

 

 

50,649

 

 

 

48,086

 

 

 

 

 

 

98,735

 

Total revenue

 

$

698,906

 

 

$

165,067

 

 

$

(14,731

)

 

$

849,242

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Timing of revenue recognition:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Services transferred over time

 

$

648,257

 

 

$

116,981

 

 

$

(14,731

)

 

$

750,507

 

Products transferred over time(2)

 

 

33,601

 

 

 

10,595

 

 

 

 

 

 

44,196

 

Products transferred at a point in time

 

 

17,048

 

 

 

37,491

 

 

 

 

 

 

54,539

 

Total revenue

 

$

698,906

 

 

$

165,067

 

 

$

(14,731

)

 

$

849,242

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Markets:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Exhibitions

 

$

364,404

 

 

$

124,467

 

 

$

 

 

$

488,871

 

Conferences

 

 

209,522

 

 

 

20,172

 

 

 

 

 

 

229,694

 

Corporate events

 

 

103,860

 

 

 

19,464

 

 

 

 

 

 

123,324

 

Consumer events

 

 

21,120

 

 

 

964

 

 

 

 

 

 

22,084

 

Intersegment eliminations

 

 

 

 

 

 

 

 

(14,731

)

 

 

(14,731

)

Total revenue

 

$

698,906

 

 

$

165,067

 

 

$

(14,731

)

 

$

849,242

 

 

(1)

During the first quarter of 2019, we realigned GES’ organizational structure. As a result, we changed GES’ reportable segments to reflect how our chief operating decision maker regularly reviews and makes decisions regarding the allocation of resources. Accordingly, GES’ new reportable segments are GES North America and GES EMEA.

(2)

GES’ graphics product revenue is recognized over time as it is considered a part of the single performance obligation satisfied over time.

 

 

 

 

Three Months Ended September 30, 2018

 

(in thousands)

 

GES North America(1)

 

 

GES EMEA(1)

 

 

Intersegment Eliminations

 

 

Total

 

Services:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Core services

 

$

162,967

 

 

$

27,511

 

 

$

 

 

$

190,478

 

Audio-visual

 

 

17,309

 

 

 

4,423

 

 

 

 

 

 

21,732

 

Event technology

 

 

4,874

 

 

 

1,745

 

 

 

 

 

 

6,619

 

Intersegment eliminations

 

 

 

 

 

 

 

 

(2,379

)

 

 

(2,379

)

Total services

 

 

185,150

 

 

 

33,679

 

 

 

(2,379

)

 

 

216,450

 

Products:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Core products

 

 

15,705

 

 

 

13,955

 

 

 

 

 

 

29,660

 

Total revenue

 

$

200,855

 

 

$

47,634

 

 

$

(2,379

)

 

$

246,110

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Timing of revenue recognition:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Services transferred over time

 

$

185,150

 

 

$

33,679

 

 

$

(2,379

)

 

$

216,450

 

Products transferred over time(2)

 

 

10,645

 

 

 

2,862

 

 

 

 

 

 

13,507

 

Products transferred at a point in time

 

 

5,060

 

 

 

11,093

 

 

 

 

 

 

16,153

 

Total revenue

 

$

200,855

 

 

$

47,634

 

 

$

(2,379

)

 

$

246,110

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Markets:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Exhibitions

 

$

114,387

 

 

$

35,787

 

 

$

 

 

$

150,174

 

Conferences

 

 

42,053

 

 

 

4,232

 

 

 

 

 

 

46,285

 

Corporate events

 

 

35,555

 

 

 

6,728

 

 

 

 

 

 

42,283

 

Consumer events

 

 

8,860

 

 

 

887

 

 

 

 

 

 

9,747

 

Intersegment eliminations

 

 

 

 

 

 

 

 

(2,379

)

 

 

(2,379

)

Total revenue

 

$

200,855

 

 

$

47,634

 

 

$

(2,379

)

 

$

246,110

 

 

(1)

During the first quarter of 2019, we realigned GES’ organizational structure. As a result, we changed GES’ reportable segments to reflect how our chief operating decision maker regularly reviews and makes decisions regarding the allocation of resources. Accordingly, GES’ new reportable segments are GES North America and GES EMEA.

(2)

GES’ graphics product revenue is recognized over time as it is considered a part of the single performance obligation satisfied over time.

 

 

 

 

Nine Months Ended September 30, 2018

 

(in thousands)

 

GES North America(1)

 

 

GES EMEA(1)

 

 

Intersegment Eliminations

 

 

Total

 

Services:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Core services

 

$

555,175

 

 

$

88,270

 

 

$

 

 

$

643,445

 

Audio-visual

 

 

55,134

 

 

 

14,144

 

 

 

 

 

 

69,278

 

Event technology

 

 

23,443

 

 

 

7,866

 

 

 

 

 

 

31,309

 

Intersegment eliminations

 

 

 

 

 

 

 

 

(11,888

)

 

 

(11,888

)

Total services

 

 

633,752

 

 

 

110,280

 

 

 

(11,888

)

 

 

732,144

 

Products:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Core products

 

 

50,058

 

 

 

46,936

 

 

 

 

 

 

96,994

 

Total revenue

 

$

683,810

 

 

$

157,216

 

 

$

(11,888

)

 

$

829,138

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Timing of revenue recognition:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Services transferred over time

 

$

633,752

 

 

$

110,280

 

 

$

(11,888

)

 

$

732,144

 

Products transferred over time(2)

 

 

32,982

 

 

 

11,018

 

 

 

 

 

 

44,000

 

Products transferred at a point in time

 

 

17,076

 

 

 

35,918

 

 

 

 

 

 

52,994

 

Total revenue

 

$

683,810

 

 

$

157,216

 

 

$

(11,888

)

 

$

829,138

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Markets:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Exhibitions

 

$

397,945

 

 

$

116,410

 

 

$

 

 

$

514,355

 

Conferences

 

 

170,910

 

 

 

21,677

 

 

 

 

 

 

192,587

 

Corporate events

 

 

93,797

 

 

 

17,170

 

 

 

 

 

 

110,967

 

Consumer events

 

 

21,158

 

 

 

1,959

 

 

 

 

 

 

23,117

 

Intersegment eliminations

 

 

 

 

 

 

 

 

(11,888

)

 

 

(11,888

)

Total revenue

 

$

683,810

 

 

$

157,216

 

 

$

(11,888

)

 

$

829,138

 

 

(1)

During the first quarter of 2019, we realigned GES’ organizational structure. As a result, we changed GES’ reportable segments to reflect how our chief operating decision maker regularly reviews and makes decisions regarding the allocation of resources. Accordingly, GES’ new reportable segments are GES North America and GES EMEA.

(2)

GES’ graphics product revenue is recognized over time as it is considered a part of the single performance obligation satisfied over time.

 

Pursuit

 

 

 

Three Months Ended

 

 

Nine Months Ended

 

 

 

September 30,

 

 

September 30,

 

(in thousands)

 

2019

 

 

2018

 

 

2019

 

 

2018

 

Services:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Admissions

 

$

49,353

 

 

$

51,316

 

 

$

76,034

 

 

$

78,375

 

Accommodations

 

 

41,292

 

 

 

24,623

 

 

 

56,636

 

 

 

35,358

 

Transportation

 

 

6,868

 

 

 

7,602

 

 

 

12,817

 

 

 

14,292

 

Travel planning

 

 

2,004

 

 

 

651

 

 

 

4,107

 

 

 

1,450

 

Intersegment eliminations

 

 

(671

)

 

 

(554

)

 

 

(1,355

)

 

 

(1,260

)

Total services revenue

 

 

98,846

 

 

 

83,638

 

 

 

148,239

 

 

 

128,215

 

Products:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Food and beverage

 

 

19,333

 

 

 

16,074

 

 

 

28,903

 

 

 

23,998

 

Retail operations

 

 

16,864

 

 

 

12,341

 

 

 

23,977

 

 

 

17,917

 

Total products revenue

 

 

36,197

 

 

 

28,415

 

 

 

52,880

 

 

 

41,915

 

Total revenue

 

$

135,043

 

 

$

112,053

 

 

$

201,119

 

 

$

170,130

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Timing of revenue recognition:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Services transferred over time

 

$

98,846

 

 

$

83,638

 

 

$

148,239

 

 

$

128,215

 

Products transferred at a point in time

 

 

36,197

 

 

 

28,415

 

 

 

52,880

 

 

 

41,915

 

Total revenue

 

$

135,043

 

 

$

112,053

 

 

$

201,119

 

 

$

170,130

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Markets:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Banff Jasper Collection

 

$

75,337

 

 

$

58,525

 

 

$

116,433

 

 

$

94,133

 

Alaska Collection

 

 

26,909

 

 

 

25,546

 

 

 

39,287

 

 

 

36,373

 

Glacier Park Collection

 

 

28,098

 

 

 

23,418

 

 

 

36,296

 

 

 

30,684

 

FlyOver

 

 

4,699

 

 

 

4,564

 

 

 

9,103

 

 

 

8,940

 

Total revenue

 

$

135,043

 

 

$

112,053

 

 

$

201,119

 

 

$

170,130

 

 

v3.19.3
Share-Based Compensation
9 Months Ended
Sep. 30, 2019
Disclosure Of Compensation Related Costs Sharebased Payments [Abstract]  
Share-Based Compensation

Note 3. Share-Based Compensation

The following table summarizes share-based compensation expense:

 

 

 

Three Months Ended

 

 

Nine Months Ended

 

 

 

September 30,

 

 

September 30,

 

(in thousands)

 

2019

 

 

2018

 

 

2019

 

 

2018

 

Performance unit incentive plan (“PUP”)

 

$

1,033

 

 

$

1,607

 

 

$

4,013

 

 

$

3,125

 

Restricted stock

 

 

687

 

 

 

609

 

 

 

2,163

 

 

 

1,779

 

Restricted stock units

 

 

111

 

 

 

78

 

 

 

272

 

 

 

152

 

Share-based compensation before income tax benefit

 

 

1,831

 

 

 

2,294

 

 

 

6,448

 

 

 

5,056

 

Income tax benefit

 

 

(460

)

 

 

(580

)

 

 

(1,625

)

 

 

(1,276

)

Share-based compensation, net of income tax benefit

 

$

1,371

 

 

$

1,714

 

 

$

4,823

 

 

$

3,780

 

We did not record any share-based compensation expense through restructuring charges during the three and nine months ended September 30, 2019 or 2018.

The following table summarizes the activity of the outstanding share-based compensation awards:

 

 

 

PUP Awards

 

 

Restricted Stock

 

 

Restricted Stock Units

 

 

 

Shares

 

 

Weighted-Average

Grant Date

Fair Value

 

 

Shares

 

 

Weighted-Average

Grant Date

Fair Value

 

 

Shares

 

 

Weighted-Average

Grant Date

Fair Value

 

Balance at December 31, 2018

 

 

239,809

 

 

$

40.65

 

 

 

176,769

 

 

$

40.87

 

 

 

12,090

 

 

$

39.04

 

Granted

 

 

73,418

 

 

$

58.28

 

 

 

55,440

 

 

$

57.86

 

 

 

5,025

 

 

$

56.81

 

Vested

 

 

(95,309

)

 

$

26.98

 

 

 

(82,647

)

 

$

32.15

 

 

 

(5,377

)

 

$

26.98

 

Forfeited

 

 

(2,192

)

 

$

55.92

 

 

 

(5,323

)

 

$

50.03

 

 

 

(115

)

 

$

52.15

 

Balance at September 30, 2019

 

 

215,726

 

 

$

52.54

 

 

 

144,239

 

 

$

52.05

 

 

 

11,623

 

 

$

52.17

 

Viad Corp Omnibus Incentive Plan

We grant share-based compensation awards to our officers, directors, and certain key employees pursuant to the 2017 Viad Corp Omnibus Incentive Plan (the “2017 Plan”). The 2017 Plan has a 10-year life and provides for the following types of awards: (a) incentive and non-qualified stock options; (b) restricted stock and restricted stock units; (c) performance units or performance shares; (d) stock appreciation rights; (e) cash-based awards; and (f) certain other stock-based awards. In June 2017, we registered 1,750,000 shares of common stock issuable under the 2017 Plan. As of September 30, 2019, there were 1,582,828 shares available for future grant under the 2017 Plan.

PUP Awards

The vesting of PUP award shares is based upon achievement of certain performance-based criteria over a three-year period.

During the nine months ended September 30, 2019, we granted PUP awards with a grant date fair value of $4.3 million, of which $1.7 million are payable in shares. Liabilities related to PUP awards were $5.1 million as of September 30, 2019 and $7.0 million as of December 31, 2018. In 2019, PUP awards granted in 2016 vested and we paid $5.6 million in cash and $3.4 million in shares. In 2019, we withheld 25,771 shares for $1.5 million related to tax withholding requirements on vested PUP awards paid in shares. In 2018, PUP awards granted in 2015 vested and we distributed cash payouts of $5.9 million.

Restricted Stock

As of September 30, 2019, the unamortized cost of outstanding restricted stock awards was $3.3 million, which we expect to recognize over a weighted-average period of approximately 1.3 years. We repurchased 24,586 shares for $1.4 million during the nine months ended September 30, 2019 and 21,767 shares for $1.2 million during the nine months ended September 30, 2018 related to tax withholding requirements on vested share-based awards.

Restricted Stock Units

Aggregate liabilities related to restricted stock units were $0.4 million as of September 30, 2019 and $0.4 million as of December 31, 2018. During the nine months ended September 30, 2019, restricted stock units vested and we paid $0.3 million in cash and $0.2 million in shares. During the nine months ended September 30, 2018, the 2015 restricted stock units vested and we distributed $0.2 million in cash payouts.

Stock Options

The following table summarizes stock option activity:

 

 

 

Shares

 

 

Weighted-Average

Exercise Price

 

Options outstanding and exercisable at December 31, 2018

 

 

58,689

 

 

$

16.62

 

Exercised

 

 

(5,546

)

 

$

16.62

 

Options outstanding and exercisable at September 30, 2019

 

 

53,143

 

 

$

16.62

 

 

v3.19.3
Acquisition of Businesses
9 Months Ended
Sep. 30, 2019
Business Combinations [Abstract]  
Acquisition of Businesses

Note 4. Acquisition of Businesses

2019 Acquisitions

Belton Chalet

On May 16, 2019, we acquired the Belton Chalet in Glacier National Park for total cash consideration of $3.2 million. Transaction costs associated with the acquisition were $0.3 million, which are included in “Cost of services” in the Condensed Consolidated Statements of Operations. These assets have been included in the consolidated financial statements from the date of acquisition.

Mountain Park Lodges

On June 8, 2019, we acquired a 60% equity interest in Mountain Park Lodges’ group of seven hotels and an undeveloped land parcel located in Jasper National Park for total consideration of $100.6 million Canadian dollars (approximately $76 million U.S. dollars).

The seven Mountain Park Lodges properties include: Sawridge Inn and Conference Centre (152 guest rooms); Pyramid Lake Resort (62 guest rooms); The Crimson Hotel (99 guest rooms); Chateau Jasper (119 guest rooms); Pocahontas Cabins (57 guest rooms); Marmot Lodge (107 guest rooms); and Lobstick Lodge (139 guest rooms).

As the majority owner of these properties, we consolidate 100% of the results of operations in our consolidated financial statements and record the 40% owners’ share of the income or loss attributable to non-redeemable noncontrolling interest.

The following table summarizes the preliminary recording of the fair value allocation of the assets acquired and liabilities assumed as of the date of acquisition. During the three months ended September 30, 2019, we made certain purchase accounting measurement period adjustments based on refinements to assumptions used in the preliminary valuation. The purchase price allocation is not yet final and is subject to change within the measurement period (up to one year from the acquisition date) as the valuation of property and equipment, intangible assets, and working capital is finalized.

 

(in thousands)

 

 

 

 

 

 

 

 

Purchase price paid as:

 

 

 

 

 

 

 

 

Cash

 

 

 

 

 

$

70,975

 

Cash - Additional purchase price paid for tax liability

 

 

 

 

 

 

4,862

 

Net working capital adjustment

 

 

 

 

 

 

18

 

Consideration transferred

 

 

 

 

 

 

75,855

 

Right to manage

 

 

 

 

 

 

(1,276

)

Purchase price, net

 

 

 

 

 

 

74,579

 

 

 

 

 

 

 

 

 

 

Fair value of net assets acquired:

 

 

 

 

 

 

 

 

Accounts receivable

 

$

333

 

 

 

 

 

Inventories

 

 

152

 

 

 

 

 

Prepaid expenses

 

 

276

 

 

 

 

 

Property and equipment

 

 

101,840

 

 

 

 

 

Intangible assets

 

 

21,982

 

 

 

 

 

Total assets acquired

 

 

124,583

 

 

 

 

 

Accounts payable

 

 

329

 

 

 

 

 

Advanced deposits payable

 

 

400

 

 

 

 

 

Deferred tax liability

 

 

11,463

 

 

 

 

 

Other liabilities

 

 

16

 

 

 

 

 

Total liabilities assumed

 

 

12,208

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Noncontrolling interest equity

 

 

49,719

 

 

 

 

 

Total fair value of net assets acquired

 

 

 

 

 

 

62,656

 

Excess purchase price over fair value of net assets acquired (“goodwill”)

 

 

 

 

 

$

11,923

 

Under the acquisition method of accounting, the purchase price as shown in the table above is allocated to the tangible and identifiable intangible assets acquired and liabilities assumed based on their estimated fair value. The excess purchase price over the fair value of net assets acquired was recorded as “Goodwill.” Goodwill is included in the Pursuit business group. The primary factor that contributed to the purchase price resulting in the recognition of goodwill related to future growth opportunities when combined with

our other businesses. Goodwill is not deductible for tax purposes. The estimated values of current assets and liabilities were based upon their historical costs on the acquisition date due to their short-term nature.

Transaction costs associated with the Mountain Park Lodges were $0.8 million in 2019 and $0.1 million in 2018, which are included in “Corporate activities” in the Condensed Consolidated Statements of Operations. We included these assets and results of operations in the consolidated financial statements from the date of acquisition. During the nine months ended September 30, 2019, revenue related to the Mountain Park Lodges was $15.1 million and operating income was $7.1 million.

Identifiable intangible assets acquired in the Mountain Park Lodges acquisition were $22.0 million and consist primarily of in-place leases, customer relationships, and trade names. The weighted average amortization period related to the intangible assets is approximately 27.6 years.

Pursuit – Geothermal Lagoon Attraction

On July 25, 2019, we announced plans for a new geothermal lagoon attraction that will be located on an oceanfront lot just outside downtown Reykjavik, Iceland. We acquired a 51% controlling interest in the new geothermal lagoon attraction for $13.2 million, which we will operate in partnership with Geothermal Lagoon ehf., the Icelandic entity that owns the lagoon assets. Due to the recent timing of the acquisition, the purchase price allocation is not yet final and is subject to change within the measurement period (up to one year from the acquisition date). We expect to open our new attraction in 2021.

Supplementary pro forma financial information

The following table summarizes the unaudited pro forma results of operations attributable to Viad, assuming the Mountain Park Lodges acquisition had been completed on January 1, 2018:

 

 

 

Three Months Ended

 

 

Nine Months Ended

 

(in thousands, except per share data)

 

September 30, 2019

 

 

September 30, 2018

 

 

September 30, 2019

 

 

September 30, 2018

 

Revenue

 

$

362,488

 

 

$

370,025

 

 

$

1,058,622

 

 

$

1,022,463

 

Depreciation and amortization

 

$

16,347

 

 

$

17,529

 

 

$

46,695

 

 

$

48,455

 

Income (loss) from continuing operations

 

$

34,607

 

 

$

42,500

 

 

$

28,709

 

 

$

53,651

 

Net income (loss) attributable to Viad

 

$

31,416

 

 

$

39,549

 

 

$

26,765

 

 

$

52,334

 

Diluted income (loss) per share

 

$

1.53

 

 

$

1.94

 

 

$

1.29

 

 

$

2.55

 

Basic income (loss) per share

 

$

1.53

 

 

$

1.94

 

 

$

1.29

 

 

$

2.56

 

 

2018 Acquisition

Maligne Canyon Restaurant

In March 2018, we acquired the Maligne Canyon Restaurant and Gift Shop for total cash consideration of $6.0 million Canadian dollars (approximately $4.6 million U.S. dollars). Transaction costs associated with the acquisition were $24 thousand in 2018, which are included in “Cost of services” in the Condensed Consolidated Statements of Operations. These assets have been included in the consolidated financial statements from the date of acquisition. The Maligne Canyon Restaurant has been renovated and rebranded as the Maligne Canyon Wilderness Kitchen.

v3.19.3
Inventories
9 Months Ended
Sep. 30, 2019
Inventory Disclosure [Abstract]  
Inventories

Note 5. Inventories

Inventories, which consist primarily of exhibit design and construction materials and supplies, as well as retail inventory, are stated at the lower of cost (first-in, first-out and specific identification methods) or net realizable value.

The components of inventories consisted of the following:

 

 

 

September 30,

 

 

December 31,

 

(in thousands)

 

2019

 

 

2018

 

Raw materials

 

$

10,656

 

 

$

12,368

 

Finished goods

 

 

5,667

 

 

 

4,261

 

Inventories

 

$

16,323

 

 

$

16,629

 

 

 

v3.19.3
Other Current Assets
9 Months Ended
Sep. 30, 2019
Deferred Costs Capitalized Prepaid And Other Assets Disclosure [Abstract]  
Other Current Assets

Note 6. Other Current Assets

Other current assets consisted of the following:

 

 

 

September 30,

 

 

December 31,

 

(in thousands)

 

2019

 

 

2018

 

Income tax receivable

 

$

9,672

 

 

$

10,886

 

Prepaid software maintenance

 

 

5,070

 

 

 

4,010

 

Prepaid vendor payments

 

 

3,992

 

 

 

4,492

 

Prepaid insurance

 

 

2,521

 

 

 

2,754

 

Prepaid taxes

 

 

1,625

 

 

 

591

 

Prepaid other

 

 

2,737

 

 

 

1,755

 

Other

 

 

966

 

 

 

998

 

Other current assets

 

$

26,583

 

 

$

25,486

 

 

 

v3.19.3
Property and Equipment
9 Months Ended
Sep. 30, 2019
Property Plant And Equipment [Abstract]  
Property and Equipment

Note 7. Property and Equipment

Property and equipment consisted of the following:

 

 

 

September 30,

 

 

December 31,

 

(in thousands)

 

2019

 

 

2018

 

Land and land interests

 

$

33,984

 

 

$

32,887

 

Buildings and leasehold improvements

 

 

366,633

 

 

 

238,995

 

Equipment and other

 

 

411,824

 

 

 

383,284

 

Gross property and equipment

 

 

812,441

 

 

 

655,166

 

Accumulated depreciation

 

 

(351,165

)

 

 

(321,319

)

Property and equipment, net (excluding finance leases)

 

 

461,276

 

 

 

333,847

 

Finance lease right-of-use assets, net

 

 

25,257

 

 

 

 

Property and equipment, net

 

$

486,533

 

 

$

333,847

 

 

Depreciation expense was $12.7 million for the three months ended September 30, 2019 and $34.0 million for the nine months ended September 30, 2019. Depreciation expense was $13.3 million for the three months ended September 30, 2018 and $35.9 million for nine months ended September 30, 2018.

 

Amortization expense on finance leases was $0.7 million for the three months ended September 30, 2019 and $1.9 million for the nine months ended September 30, 2019.

Property and equipment purchased through accounts payable and accrued liabilities increased $2.0 million during the nine months ended September 30, 2019 and $4.4 million for the nine months ended September 30, 2018.

v3.19.3
Other Investments and Assets
9 Months Ended
Sep. 30, 2019
Investments All Other Investments [Abstract]  
Other Investments and Assets

Note 8. Other Investments and Assets

Other investments and assets consisted of the following:

 

 

 

September 30,

 

 

December 31,

 

(in thousands)

 

2019

 

 

2018

 

Cash surrender value of life insurance

 

$

24,060

 

 

$

23,815

 

Self-insured liability receivable

 

 

9,176

 

 

 

9,176

 

Contract costs

 

 

3,175

 

 

 

3,461

 

Other mutual funds

 

 

2,933

 

 

 

2,517

 

Other

 

 

3,159

 

 

 

3,941

 

Other investments and assets

 

$

42,503

 

 

$

42,910

 

 

v3.19.3
Goodwill and Other Intangible Assets
9 Months Ended
Sep. 30, 2019
Goodwill And Intangible Assets Disclosure [Abstract]  
Goodwill and Other Intangible Assets

Note 9. Goodwill and Other Intangible Assets

The changes in the carrying amount of goodwill are as follows:

 

(in thousands)

 

GES North America

 

 

GES EMEA

 

 

Pursuit

 

 

Total

 

Balance at December 31, 2018

 

$

154,944

 

 

$

29,954

 

 

$

76,432

 

 

$

261,330

 

Business acquisitions

 

 

 

 

 

 

 

 

12,413

 

 

 

12,413

 

Foreign currency translation adjustments

 

 

200

 

 

 

(1,126

)

 

 

1,506

 

 

 

580

 

Other adjustment

 

 

 

 

 

 

 

 

1,245

 

 

 

1,245

 

Balance at September 30, 2019

 

$

155,144

 

 

$

28,828

 

 

$

91,596

 

 

$

275,568

 

Other intangible assets consisted of the following:

 

 

 

 

 

September 30, 2019

 

 

December 31, 2018

 

(in thousands)

 

Useful Life

(Years)

 

Gross Carrying

Value

 

 

Accumulated

Amortization

 

 

Net Carrying Value

 

 

Gross Carrying

Value

 

 

Accumulated

Amortization

 

 

Net Carrying Value

 

Intangible assets subject to amortization:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Customer contracts and relationships

 

7.4

 

$

73,249

 

 

$

(36,645

)

 

$

36,604

 

 

$

67,729

 

 

$

(31,201

)

 

$

36,528

 

Operating contracts and licenses

 

26.6

 

 

23,933

 

 

 

(1,803

)

 

 

22,130

 

 

 

9,180

 

 

 

(1,376

)

 

 

7,804

 

Tradenames

 

6.8

 

 

9,289

 

 

 

(4,100

)

 

 

5,189

 

 

 

7,705

 

 

 

(3,109

)

 

 

4,596

 

Non-compete agreements

 

2.3

 

 

5,149

 

 

 

(4,816

)

 

 

333

 

 

 

5,174

 

 

 

(4,080

)

 

 

1,094

 

Other

 

8.1

 

 

16,148

 

 

 

(835

)

 

 

15,313

 

 

 

1,365

 

 

 

(553

)

 

 

812

 

Total amortized intangible assets

 

 

 

 

127,768

 

 

 

(48,199

)

 

 

79,569

 

 

 

91,153

 

 

 

(40,319

)

 

 

50,834

 

Indefinite-lived intangible assets:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Business licenses

 

 

 

 

460

 

 

 

 

 

 

460

 

 

 

460

 

 

 

 

 

 

460

 

Other intangible assets

 

 

 

$

128,228

 

 

$

(48,199

)

 

$

80,029

 

 

$

91,613

 

 

$

(40,319

)

 

$

51,294

 

 

Intangible asset amortization expense was $2.9 million for the three months ended September 30, 2019 and $8.2 million for the nine months ended September 30, 2019. Intangible asset amortization was $2.9 million for the three months ended September 30, 2018 and $8.4 million for the nine months ended September 30, 2018.

At September 30, 2019, the estimated future amortization expense related to intangible assets subject to amortization is as follows:

 

(in thousands)

 

 

 

 

Year ending December 31,

 

 

 

 

Remainder of 2019

 

$

2,569

 

2020

 

 

10,030

 

2021

 

 

8,987

 

2022

 

 

7,698

 

2023

 

 

6,481

 

Thereafter

 

 

43,804

 

Total

 

$

79,569

 

 

v3.19.3
Other Current Liabilities
9 Months Ended
Sep. 30, 2019
Other Liabilities Current [Abstract]  
Other Current Liabilities

Note 10. Other Current Liabilities

Other current liabilities consisted of the following:

 

 

 

September 30,

 

 

December 31,

 

(in thousands)

 

2019

 

 

2018

 

Continuing operations:

 

 

 

 

 

 

 

 

Commissions payable

 

$

8,660

 

 

$

2,703

 

Self-insured liability

 

 

6,161

 

 

 

5,688

 

Accrued sales and use taxes

 

 

5,183

 

 

 

5,397

 

Accrued employee benefit costs

 

 

4,493

 

 

 

3,224

 

Accrued income tax payable

 

 

3,623

 

 

 

 

Accrued legal settlement

 

 

2,500

 

 

 

 

Current portion of pension and postretirement liabilities

 

 

2,134

 

 

 

2,310

 

Accrued dividends

 

 

2,010

 

 

 

2,012

 

Accrued restructuring

 

 

1,753

 

 

 

716

 

Accommodation services deposits

 

 

1,483

 

 

 

1,541

 

Accrued professional fees

 

 

1,261

 

 

 

886

 

Deferred rent (1)

 

 

 

 

 

1,659

 

Other taxes

 

 

1,139

 

 

 

695

 

Other

 

 

3,462

 

 

 

4,501

 

Total continuing operations

 

 

43,862

 

 

 

31,332

 

Discontinued operations:

 

 

 

 

 

 

 

 

Environmental remediation liabilities

 

 

407

 

 

 

555

 

Self-insured liability

 

 

252

 

 

 

295

 

Other

 

 

76

 

 

 

76

 

Total discontinued operations

 

 

735

 

 

 

926

 

Total other current liabilities

 

$

44,597

 

 

$

32,258

 

 

(1)

Upon the adoption of Topic 842, we reclassified deferred rent to operating lease obligations. We did not recast prior year financial statements under the new standard. Refer to Note 19 – Leases and Other for additional information.

v3.19.3
Other Deferred Items and Liabilities
9 Months Ended
Sep. 30, 2019
Other Liabilities Disclosure [Abstract]  
Other Deferred Items and Liabilities

Note 11. Other Deferred Items and Liabilities

Other deferred items and liabilities consisted of the following:

 

 

 

September 30,

 

 

December 31,

 

(in thousands)

 

2019

 

 

2018

 

Continuing operations:

 

 

 

 

 

 

 

 

Foreign deferred tax liability

 

$

17,933

 

 

$

9,768

 

Multi-employer pension plan withdrawal liability

 

 

15,508

 

 

 

 

Self-insured liability

 

 

9,429

 

 

 

10,681

 

Self-insured excess liability

 

 

9,176

 

 

 

9,176

 

Accrued compensation

 

 

7,104

 

 

 

6,664

 

Accrued restructuring

 

 

2,200

 

 

 

1,535

 

Contract liabilities

 

 

125

 

 

 

2,124

 

Deferred rent (1)

 

 

 

 

 

2,719

 

Other

 

 

3,093

 

 

 

1,868

 

Total continuing operations

 

 

64,568

 

 

 

44,535

 

Discontinued operations:

 

 

 

 

 

 

 

 

Self-insured liability

 

 

2,273

 

 

 

2,437

 

Environmental remediation liabilities

 

 

1,871

 

 

 

1,775

 

Other

 

 

497

 

 

 

244

 

Total discontinued operations

 

 

4,641

 

 

 

4,456

 

Total other deferred items and liabilities

 

$

69,209

 

 

$

48,991

 

 

(1)

Upon the adoption of Topic 842, we reclassified deferred rent to operating lease obligations. We did not recast prior year financial statements under the new standard. Refer to Note 19 – Leases and Other for additional information.

v3.19.3
Debt and Finance Lease Obligations
9 Months Ended
Sep. 30, 2019
Debt Disclosure [Abstract]  
Debt and Finance Lease Obligations

Note 12. Debt and Finance Lease Obligations

The components of our long-term debt and finance lease obligations consisted of the following:

 

 

 

September 30,

 

 

December 31,

 

(in thousands, except interest rates)

 

2019

 

 

2018

 

2018 Credit Facility, 4.1% weighted-average interest rate at September 30, 2019 and 4.3% at December 31, 2018, due through 2023(1)

 

$

295,378

 

 

$

227,792

 

FlyOver Iceland Credit Facility, 4.9% weighted-average interest rate at September 30, 2019, due through 2022(1)

 

 

5,452

 

 

 

 

Less unamortized debt issuance costs

 

 

(1,925

)

 

 

(2,310

)

Total debt (2)

 

 

298,905

 

 

 

225,482

 

Finance lease obligations, 6.2% weighted-average interest rate at September 30, 2019 and 4.5% at December 31, 2018, due through 2021

 

 

25,330

 

 

 

4,639

 

Total debt and finance lease obligations (3)

 

 

324,235

 

 

 

230,121

 

Current portion (4)

 

 

(298,940

)

 

 

(229,416

)

Long-term debt and finance lease obligations

 

$

25,295

 

 

$

705

 

(1)

Represents the weighted-average interest rate in effect at the respective periods, including any applicable margin. The interest rates do not include amortization of debt issuance costs or commitment fees.

(2)

The estimated fair value of total debt was $297.8 million as of September 30, 2019 and $228.6 million as of December 31, 2018. The fair value of debt was estimated by discounting the future cash flows using rates currently available for debt of similar terms and maturity, which is a Level 2 measurement. Refer to Note 13 – Fair Value Measurements.

(3)

Cash paid for interest on debt was $8.8 million for the nine months ended September 30, 2019 and $6.2 million for the nine months ended September 30, 2018.

(4)

Borrowings under the 2018 Credit Facility are classified as current because all borrowed amounts are due within one year.

2018 Credit Agreement

Effective October 24, 2018, we entered into a Second Amended and Restated Credit Agreement (the “2018 Credit Agreement”). The 2018 Credit Agreement has a maturity date of October 24, 2023 and provides for a $450 million revolving credit facility (“2018 Credit Facility”). Proceeds from the 2018 Credit Facility were used to refinance certain of our outstanding debt and provide us with additional funds for our operations, growth initiatives, acquisitions, and other general corporate purposes in the ordinary course of business. The 2018 Credit Facility may be increased up to an additional $250 million under certain circumstances and has a $20 million sublimit for letters of credit. Borrowings and letters of credit can be denominated in U.S. dollars, Euros, Canadian dollars, or British pounds. Our lenders under the 2018 Credit Facility have a first perfected security interest in all of our personal property including GES, GES Event Intelligence Services, Inc., CATC Alaska Tourism Corporation (“CATC”), ON Event Services, LLC (“ON Services”), and 65% of the capital stock of our top-tier foreign subsidiaries (other than Esja). Financial covenants include an interest coverage ratio of not less than 3.00 to 1.00 and a leverage ratio of not greater than 3.50 to 1.00, with a step-up to 4.00 to 1.00 for four quarters following a material acquisition of $50 million or more. Dividends are permitted up to $15 million in any calendar year. In addition, we can declare and pay dividends or repurchase our common stock up to $20 million per calendar year. Dividends and repurchases above those thresholds are permitted as long as our pro forma leverage ratio is less than or equal to 2.75 to 1.00. Unsecured debt is allowed provided we are in compliance with the leverage ratio. In addition, the unsecured debt must mature after the expiration of the 2018 Credit Facility, cannot have scheduled principal payments while the 2018 Credit Facility is in place, and any covenants for unsecured debt cannot be more restrictive than the 2018 Credit Facility. Significant other covenants include limitations on investments, additional indebtedness, sales and dispositions of assets, and liens on property. As of September 30, 2019, the interest coverage ratio was 10.17 to 1.00, the leverage ratio was 2.32 to 1.00, and we were in compliance with all covenants under the 2018 Credit Agreement.

Effective July 23, 2019, we entered into an amendment (“Amendment No.1”) to the 2018 Credit Agreement. Amendment No.1 modified the terms related to the withdrawal liabilities of single and multi-employer ERISA plans.

Borrowings under the 2018 Credit Facility (of which GES, GES Event Intelligence Services, Inc., CATC, and ON Services are guarantors) are indexed to the prime rate or the London Interbank Offered Rate (“LIBOR”), plus appropriate spreads tied to our leverage ratio. As LIBOR will be phased out in 2021, our 2018 Credit Facility includes a method for determining an alternative or successor rate of interest that gives consideration to the new prevailing market convention. The vast majority of our borrowings under the 2018 Credit Facility are indexed to LIBOR. Commitment fees and letters of credit fees are also tied to our leverage ratio. The fees on the unused portion of the 2018 Credit Facility were 0.35% annually as of September 30, 2019. Only our borrowings under the 2018

Credit Facility and the discount rates we use to account for some leases are indexed to LIBOR. We do not expect the alternative or successor rate to LIBOR to have a material impact on either our 2018 Credit Facility or the accounting for our leases.

As of September 30, 2019, capacity remaining under the 2018 Credit Facility was $151.0 million, reflecting borrowings of $295.4 million and $3.6 million in outstanding letters of credit.

FlyOver Iceland Credit Facility

Effective February 15, 2019, FlyOver Iceland ehf., a wholly-owned subsidiary of Esja, entered into a credit agreement with a €5.0 million (approximately $5.5 million) credit facility (the “FlyOver Iceland Credit Facility”) with a maturity date of March 1, 2022. The loan proceeds were used to complete the development of the FlyOver Iceland attraction. Quarterly payments will be made until the loan is repaid.

 

v3.19.3
Fair Value Measurements
9 Months Ended
Sep. 30, 2019
Fair Value Disclosures [Abstract]  
Fair Value Measurements

Note 13. Fair Value Measurements

The fair value of an asset or liability is defined as the price that would be received by selling an asset or paying to transfer a liability in an orderly transaction between market participants at the measurement date. The fair value guidance requires an entity to maximize the use of quoted prices and other observable inputs and minimize the use of unobservable inputs when measuring fair value, and also establishes a fair value hierarchy, which prioritizes the inputs to valuation techniques used to measure fair value as follows:

Level 1 - Quoted prices in active markets for identical assets or liabilities.

Level 2 - Observable inputs other than quoted prices included within Level 1 that are observable for the asset or liability, either directly or indirectly.

Level 3 - Unobservable inputs to the valuation methodology that are significant to the measurement of fair value.

Money market mutual funds and certain other mutual fund investments are measured at fair value on a recurring basis using Level 1 inputs. The fair value information related to these assets is summarized in the following tables:

 

 

 

 

 

 

 

Fair Value Measurements at Reporting Date Using

 

(in thousands)

 

September 30, 2019

 

 

Quoted Prices in

Active

Markets

(Level 1)

 

 

Significant

Other

Observable

Inputs

(Level 2)

 

 

Significant

Unobservable

Inputs

(Level 3)

 

Assets:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Money market funds (1)

 

$

122

 

 

$

122

 

 

$

 

 

$

 

Other mutual funds (2)

 

 

2,933

 

 

 

2,933

 

 

 

 

 

 

 

Total assets at fair value on a recurring basis

 

$

3,055

 

 

$

3,055

 

 

$

 

 

$

 

 

 

 

 

 

 

 

Fair Value Measurements at Reporting Date Using

 

(in thousands)

 

December 31, 2018

 

 

Quoted Prices

in Active

Markets

(Level 1)

 

 

Significant

Other

Observable

Inputs

(Level 2)

 

 

Significant

Unobservable

Inputs

(Level 3)

 

Assets:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Money market funds (1)

 

$

121

 

 

$

121

 

 

$

 

 

$

 

Other mutual funds (2)

 

 

2,517

 

 

 

2,517

 

 

 

 

 

 

 

Total assets at fair value on a recurring basis

 

$

2,638

 

 

$

2,638

 

 

$

 

 

$

 

(1)

Money market funds are included in “Cash and cash equivalents” in the Condensed Consolidated Balance Sheets. These investments are classified as available-for-sale and are recorded at fair value. There have been no realized gains or losses related to these investments and we have not experienced any redemption restrictions with respect to any of the money market mutual funds.

(2)

Other mutual funds are included in “Other investments and assets” in the Condensed Consolidated Balance Sheets.

The carrying values of cash and cash equivalents, receivables, and accounts payable approximate fair value due to the short-term maturities of these instruments. Refer to Note 12 Debt and Finance Lease Obligations for the estimated fair value of debt obligations.

v3.19.3
Accumulated Other Comprehensive Income (Loss)
9 Months Ended
Sep. 30, 2019
Accumulated Other Comprehensive Income Loss [Abstract]  
Accumulated Other Comprehensive Income (Loss)

Note 14. Accumulated Other Comprehensive Income (Loss)

 

Changes in accumulated other comprehensive income (“AOCI”) by component are as follows:

 

(in thousands)

 

Cumulative

Foreign Currency Translation Adjustments

 

 

Unrecognized Net Actuarial Loss and Prior Service Credit, Net

 

 

Accumulated

Other

Comprehensive

Income (Loss)

 

Balance at December 31, 2018

 

$

(36,332

)

 

$

(11,643

)

 

$

(47,975

)

Other comprehensive income before reclassifications

 

 

3,868

 

 

 

 

 

 

3,868

 

Amounts reclassified from AOCI, net of tax

 

 

 

 

 

196

 

 

 

196

 

Net other comprehensive income

 

 

3,868

 

 

 

196

 

 

 

4,064

 

Balance at September 30, 2019

 

$

(32,464

)

 

$

(11,447

)

 

$

(43,911

)

 

(in thousands)

 

Unrealized Gains on Investments

 

 

Cumulative

Foreign Currency Translation Adjustments

 

 

Unrecognized Net Actuarial Loss and Prior Service Credit, Net

 

 

Accumulated

Other

Comprehensive

Income (Loss)

 

Balance at December 31, 2017

 

$

616

 

 

$

(12,026

)

 

$

(11,158

)

 

$

(22,568

)

Other comprehensive loss before reclassifications

 

 

 

 

 

(7,864

)

 

 

 

 

 

(7,864

)

Amounts reclassified from AOCI, net of tax

 

 

 

 

 

 

 

 

(715

)

 

 

(715

)

Net other comprehensive loss

 

 

 

 

 

(7,864

)

 

 

(715

)

 

 

(8,579

)

Adoption of ASU 2016-01(1)

 

 

(616

)

 

 

 

 

 

 

 

 

(616

)

Balance at September 30, 2018

 

$

 

 

$

(19,890

)

 

$

(11,873

)

 

$

(31,763

)

 

(1)

Upon the adoption of ASU 2016-01, Financial Instruments – Overall: Recognition and Measurement of Financial Assets and Financial Liabilities, we recorded a cumulative-effect adjustment from unrealized gains on investments to beginning retained earnings.

Amounts reclassified that relate to our defined benefit pension and postretirement plans include the amortization of prior service costs and actuarial net losses recognized during each period presented. These costs are recorded as components of net periodic cost for each period presented. Refer to Note 17 – Pension and Postretirement Benefits for additional information.

v3.19.3
Income Per Share
9 Months Ended
Sep. 30, 2019
Earnings Per Share [Abstract]  
Income Per Share

Note 15. Income Per Share

The components of basic and diluted income per share are as follows:

 

 

 

Three Months Ended

 

 

Nine Months Ended

 

 

 

September 30,

 

 

September 30,

 

(in thousands, except per share data)

 

2019

 

 

2018

 

 

2019

 

 

2018

 

Net income attributable to Viad (diluted)

 

$

31,416

 

 

$

37,389

 

 

$

27,463

 

 

$

51,492

 

Less: Allocation to non-vested shares

 

 

(226

)

 

 

(338

)

 

 

(196

)

 

 

(493

)

Adjustment to the redemption value of redeemable noncontrolling interest

 

 

(264

)

 

 

(84

)

 

 

(530

)

 

 

(174

)

Net income allocated to Viad common stockholders (basic)

 

$

30,926

 

 

$

36,967

 

 

$

26,737

 

 

$

50,825

 

Basic weighted-average outstanding common shares

 

 

20,168

 

 

 

20,145

 

 

 

20,129

 

 

 

20,187

 

Additional dilutive shares related to share-based compensation

 

 

143

 

 

 

242

 

 

 

138

 

 

 

240

 

Diluted weighted-average outstanding shares

 

 

20,311

 

 

 

20,387

 

 

 

20,267

 

 

 

20,427

 

Income per share:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Basic income attributable to Viad common stockholders

 

$

1.53

 

 

$

1.84

 

 

$

1.33

 

 

$

2.52

 

Diluted income attributable to Viad common stockholders

 

$

1.53

 

 

$

1.83

 

 

$

1.33

 

 

$

2.51

 

 

v3.19.3
Income Taxes
9 Months Ended
Sep. 30, 2019
Income Tax Disclosure [Abstract]  
Income Taxes

Note 16. Income Taxes

The effective tax rate was 25.6% for the three months ended September 30, 2019 and 21.8% for the three months ended September 30, 2018. The effective tax rate was 26.5% for the nine months ended September 30, 2019 and 22.8% for the nine months ended September 30, 2018.

The income tax provision was computed based on our estimated annualized effective tax rate and the full-year forecasted income plus the tax impact of unusual, infrequent, or nonrecurring items during the period. The effective tax rate for the nine months ended September 30, 2019 was more than the federal statutory rate of 21% primarily due to the impact of foreign income taxed at higher rates, non-deductible expenses, and global intangible low-taxed income (“GILTI”) tax. The effective tax rate for the nine months ended September 30, 2018 was more than the federal statutory rate primarily due to foreign income tax at higher rates.

Cash paid for income taxes was $12.1 million for the nine months ended September 30, 2019 and $20.2 million for the nine months ended September 30, 2018.

v3.19.3
Pension and Postretirement Benefits
9 Months Ended
Sep. 30, 2019
Compensation And Retirement Disclosure [Abstract]  
Pension and Postretirement Benefits

Note 17. Pension and Postretirement Benefits

The components of net periodic benefit cost of our pension and postretirement benefit plans for the three months ended September 30, 2019 and 2018 consist of the following:

 

 

 

Domestic Plans

 

 

 

 

 

 

 

 

 

 

 

Pension Plans

 

 

Postretirement Benefit Plans

 

 

Foreign Pension Plans

 

(in thousands)

 

2019

 

 

2018

 

 

2019

 

 

2018

 

 

2019

 

 

2018

 

Service cost

 

$

15

 

 

$

13

 

 

$

13

 

 

$

4

 

 

$

101

 

 

$

138

 

Interest cost

 

 

209

 

 

 

198

 

 

 

93

 

 

 

129

 

 

 

92

 

 

 

91

 

Expected return on plan assets

 

 

(35

)

 

 

(65

)

 

 

 

 

 

 

 

 

(122

)

 

 

(126

)

Amortization of prior service credit

 

 

 

 

 

 

 

 

(47

)

 

 

(51

)

 

 

 

 

 

 

Recognized net actuarial loss

 

 

96

 

 

 

124

 

 

 

(43

)

 

 

187

 

 

 

37

 

 

 

38

 

Net periodic benefit cost

 

$

285

 

 

$

270

 

 

$

16

 

 

$

269

 

 

$

108

 

 

$

141

 

The components of net periodic benefit cost of our pension and postretirement benefit plans for the nine months ended September 30, 2019 and 2018 consist of the following:

 

 

 

Domestic Plans

 

 

 

 

 

 

 

 

 

 

 

Pension Plans

 

 

Postretirement Benefit Plans

 

 

Foreign Pension Plans

 

(in thousands)

 

2019

 

 

2018

 

 

2019

 

 

2018

 

 

2019

 

 

2018

 

Service cost

 

$

46

 

 

$

48

 

 

$

48

 

 

$

60

 

 

$

303

 

 

$

418

 

Interest cost

 

 

646

 

 

 

585

 

 

 

343

 

 

 

337

 

 

 

281

 

 

 

273

 

Expected return on plan assets

 

 

(74

)

 

 

(145

)

 

 

 

 

 

 

 

 

(364

)

 

 

(382

)

Amortization of prior service credit

 

 

 

 

 

 

 

 

(141

)

 

 

(154

)

 

 

 

 

 

 

Recognized net actuarial loss

 

 

302

 

 

 

370

 

 

 

84

 

 

 

304

 

 

 

111

 

 

 

120

 

Net periodic benefit cost

 

$

920

 

 

$

858

 

 

$

334

 

 

$

547

 

 

$

331

 

 

$

429

 

 

 

We expect to contribute $1.0 million to our funded pension plans, $1.2 million to our unfunded pension plans, and $1.2 million to our postretirement benefit plans in 2019. During the nine months ended September 30, 2019, we contributed $1.0 million to our funded pension plans, $0.7 million to our unfunded pension plans, and $0.7 million to our postretirement benefit plans.

v3.19.3
Restructuring Charges
9 Months Ended
Sep. 30, 2019
Restructuring And Related Activities [Abstract]  
Restructuring Charges

Note 18. Restructuring Charges

GES

As part of our efforts to drive efficiencies and simplify our business operations, we have taken certain restructuring actions designed to reduce our cost structure primarily within GES. These actions include consolidating facilities and operations in the U.S., Canada, and the United Kingdom. During 2019, we completed some strategic simplification actions, including a facility consolidation in Las Vegas and other restructuring actions. As a result, we recorded restructuring charges primarily consisting of severance and related benefits as a result of workforce reductions and charges related to the consolidation and downsizing of facilities representing the remaining operating lease obligations (net of estimated sublease income) and related costs.

Other Restructurings

We recorded restructuring charges in connection with the consolidation of certain support functions at our corporate headquarters. These charges primarily consist of severance and related benefits due to headcount reductions.

Changes to the restructuring liability by major restructuring activity are as follows:

 

 

 

GES

 

 

Other Restructurings

 

 

 

 

 

(in thousands)

 

Severance &

Employee

Benefits

 

 

Facilities

 

 

Severance &

Employee

Benefits

 

 

Total

 

Balance at December 31, 2018

 

$

2,039

 

 

$

200

 

 

$

12

 

 

$

2,251

 

Restructuring charges

 

 

5,243

 

 

 

1,397

 

 

 

205

 

 

 

6,845

 

Cash payments

 

 

(4,428

)

 

 

(513

)

 

 

(220

)

 

 

(5,161

)

Adjustment to liability

 

 

(45

)

 

 

56

 

 

 

7

 

 

 

18

 

Balance at September 30, 2019

 

$

2,809

 

 

$

1,140

 

 

$

4

 

 

$

3,953

 

 

As of September 30, 2019, we expect to pay the liabilities related to severance and employee benefits by the end of 2020. The liability related to future lease payments will be paid over the remaining lease terms. Refer to Note 22 Segment Information, for information regarding restructuring charges by segment.

v3.19.3
Leases and Other
9 Months Ended
Sep. 30, 2019
Leases [Abstract]  
Leases and Other

Note 19. Leases and Other

The balance sheet presentation of our operating and finance leases is as follows:

 

 

 

 

 

September 30,

 

(in thousands)

 

Classification on the Condensed Consolidated Balance Sheet

 

2019

 

Assets:

 

 

 

 

 

 

Operating lease assets

 

Operating lease right-of-use assets

 

$

103,403

 

Finance lease assets

 

Property and equipment, net

 

 

25,257

 

Total lease assets

 

 

 

$

128,660

 

 

 

 

 

 

 

 

Liabilities:

 

 

 

 

 

 

Current:

 

 

 

 

 

 

Operating lease obligations

 

Operating lease obligations

 

$

22,526

 

Finance lease obligations

 

Current portion of debt and finance lease obligations

 

 

2,784

 

Noncurrent:

 

 

 

 

 

 

Operating lease obligations

 

Long-term operating lease obligations

 

 

82,630

 

Finance lease obligations

 

Long-term debt and finance lease obligations

 

 

22,546

 

Total lease liabilities

 

 

 

$

130,486

 

 

The components of lease expense consisted of the following:

 

 

 

Three Months Ended

 

 

Nine Months Ended

 

(in thousands)

 

September 30, 2019

 

 

September 30, 2019

 

Finance lease cost:

 

 

 

 

 

 

 

 

Amortization of right-of-use assets

 

$

697

 

 

$

1,895

 

Interest on lease liabilities

 

 

130

 

 

 

379

 

Operating lease cost

 

 

6,625

 

 

 

19,456

 

Short-term lease cost

 

 

571

 

 

 

1,348

 

Variable lease cost

 

 

1,478

 

 

 

4,695

 

Sublease income(1)

 

 

226

 

 

 

 

Total lease cost, net

 

$

9,727

 

 

$

27,773

 

 

(1)  Sublease income excludes rental income from owned assets, which is recorded in revenue.

 

Leases Not Yet Commenced

As of September 30, 2019, we had certain facility and land leases that were executed but for which we did not have control of the underlying assets. Accordingly, we did not record the lease liabilities and right-of-use assets on our Condensed Consolidated Balance Sheets. These leases include future planned attractions for Pursuit that are currently in the planning or development phase and that we expect to commence between fiscal years 2019 and 2022 with lease terms of 15 to 20 years.

 

Other information related to operating and finance leases are as follows:

 

 

 

Three Months Ended

 

 

Nine Months Ended

 

(in thousands)

 

September 30, 2019

 

 

September 30, 2019

 

Cash paid for amounts included in the measurement of lease liabilities:

 

 

 

 

 

 

 

 

Operating cash flows from operating leases

 

$

7,250

 

 

$

20,853

 

Operating cash flows from finance leases

 

$

210

 

 

$

459

 

Financing cash flows from finance leases

 

$

525

 

 

$

1,537

 

Right-of-use assets obtained in exchange for lease obligations:

 

 

 

 

 

 

 

 

Operating leases

 

$

49,123

 

 

$

62,375

 

Finance leases

 

$

14,893

 

 

$

35,844

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

September 30,

 

 

 

 

 

 

 

2019

 

Weighted-average remaining lease term (years):

 

 

 

 

 

 

 

 

Operating leases

 

 

 

 

 

 

8.23

 

Finance leases

 

 

 

 

 

 

15.41

 

Weighted-average discount rate:

 

 

 

 

 

 

 

 

Operating leases

 

 

 

 

 

 

5.78

%

Finance leases

 

 

 

 

 

 

6.16

%

 

As of September 30, 2019, the estimated future minimum lease payments under non-cancellable leases, excluding variable leases and variable non-lease components, are as follows:

 

(in thousands)

 

Operating Leases

 

 

Finance Leases

 

 

Total

 

Remainder of 2019

 

$

7,040

 

 

$

1,323

 

 

$

8,363

 

2020

 

 

23,839

 

 

 

4,136

 

 

 

27,975

 

2021

 

 

17,340

 

 

 

3,381

 

 

 

20,721

 

2022

 

 

15,102

 

 

 

2,920

 

 

 

18,022

 

2023

 

 

12,368

 

 

 

2,784

 

 

 

15,152

 

Thereafter

 

 

62,643

 

 

 

25,125

 

 

 

87,768

 

Total future lease payments

 

 

138,332

 

 

 

39,669

 

 

 

178,001

 

Less: Amount representing interest

 

 

(33,176

)

 

 

(14,339

)

 

 

(47,515

)

Present value of minimum lease payments

 

 

105,156

 

 

 

25,330

 

 

 

130,486

 

Current portion

 

 

22,526

 

 

 

2,784

 

 

 

25,310

 

Long-term portion

 

$

82,630

 

 

$

22,546

 

 

$

105,176

 

 

As of September 30, 2019, the estimated future minimum rentals under non-cancellable leases, which includes rental income from facilities that we own and sublease income from facilities that we lease, are as follows:

 

(in thousands)

 

 

 

 

Remainder of 2019

 

$

453

 

2020

 

 

2,020

 

2021

 

 

1,716

 

2022

 

 

1,384

 

2023

 

 

1,192

 

Thereafter

 

 

5,764

 

Total minimum sublease rents

 

$

12,529

 

 

As previously disclosed in our 2018 Form 10-K and under the previous lease accounting standard, our future minimum rental payments and related sublease rentals receivable with respect to non-cancelable operating leases with terms in excess of one year would have been as follows as of December 31, 2018:

 

(in thousands)

 

Rental

Payments

 

 

Receivable

Under Subleases

 

2019

 

$

28,671

 

 

$

2,382

 

2020

 

 

22,919

 

 

 

1,582

 

2021

 

 

13,217

 

 

 

1,711

 

2022

 

 

8,280

 

 

 

1,370

 

2023

 

 

6,201

 

 

 

1,270

 

Thereafter

 

 

8,305

 

 

 

2,798

 

Total

 

$

87,593

 

 

$

11,113

 

 

v3.19.3
Litigation, Claims, Contingencies and Other
9 Months Ended
Sep. 30, 2019
Commitments And Contingencies Disclosure [Abstract]  
Litigation, Claims, Contingencies and Other

Note 20. Litigation, Claims, Contingencies, and Other

We are plaintiffs or defendants to various actions, proceedings, and pending claims, some of which involve, or may involve, compensatory, punitive, or other damages. Litigation is subject to many uncertainties and it is possible that some of the legal actions, proceedings, or claims could be decided against us. For the nine months ended September 30, 2019, we recorded an $8.5 million charge to resolve a legal dispute at GES involving a former industry contractor. Although the amount of liability as of September 30, 2019 with respect to unresolved legal matters is not ascertainable, we believe that any resulting liability, after taking into consideration amounts already provided for and insurance coverage, will not have a material effect on our business, financial position, or results of operations.

We are subject to various U.S. federal, state, and foreign laws and regulations governing the prevention of pollution and the protection of the environment in the jurisdictions in which we have or had operations. If we fail to comply with these environmental laws and regulations, civil and criminal penalties could be imposed and we could become subject to regulatory enforcement actions in the form of injunctions and cease and desist orders. As is the case with many companies, we also face exposure to actual or potential claims and

lawsuits involving environmental matters relating to our past operations. As of September 30, 2019, we had recorded environmental remediation liabilities of $2.3 million related to previously sold operations. Although we are a party to certain environmental disputes, we believe that any resulting liabilities, after taking into consideration amounts already provided for and insurance coverage, will not have a material effect on our financial position or results of operations.

As of September 30, 2019, on behalf of our subsidiaries, we had certain obligations under guarantees to third parties. These guarantees are not subject to liability recognition in the condensed consolidated financial statements and relate to leased facilities entered into by our subsidiary operations. We would generally be required to make payments to the respective third parties under these guarantees in the event that the related subsidiary could not meet its own payment obligations. The maximum potential amount of future payments that we would be required to make under all guarantees existing as of September 30, 2019 would be $76.5 million. These guarantees relate to our leased equipment and facilities through January 2040. There are no recourse provisions that would enable us to recover from third parties any payments made under the guarantees. Furthermore, there are no collateral or similar arrangements pursuant to which we could recover payments.

A significant number of our employees are unionized and we are a party to approximately 100 collective-bargaining agreements, with approximately one-third requiring renegotiation each year. If we are unable to reach an agreement with a union during the collective-bargaining process, the union may call for a strike or work stoppage, which may, under certain circumstances, adversely impact our business and results of operations. We believe that relations with our employees are satisfactory and that collective-bargaining agreements expiring in 2019 will be renegotiated in the ordinary course of business. Although our labor relations are currently stable, disruptions could occur, with the possibility of an adverse impact on the operating results of GES. During the second quarter of 2019, we finalized the terms of a new collective-bargaining agreement with the Teamsters Local 727 union. The terms included a withdrawal from the under-funded Central States Pension Plan. Accordingly, we recorded a charge of $15.5 million, which represents the estimated present value of future contributions we will be required to make to the plan as a result of this withdrawal of this union from the plan.

We are self-insured up to certain limits for workers’ compensation, employee health benefits, automobile, product and general liability, and property loss claims. The aggregate amount of insurance liabilities (up to our retention limit) related to our continuing operations was $15.6 million as of September 30, 2019, which includes $11.0 million related to workers’ compensation liabilities, and $4.6 million related to general/auto liability claims. We have also retained and provided for certain workers’ compensation insurance liabilities in conjunction with previously sold businesses of $2.5 million as of September 30, 2019. The estimated employee health benefit claims incurred but not yet reported was $1.5 million as of September 30, 2019. Provisions for losses for claims incurred, including estimated claims incurred but not yet reported, are made based on our historical experience, claims frequency, and other factors. A change in the assumptions used could result in an adjustment to recorded liabilities. We have purchased insurance for amounts in excess of the self-insured levels, which generally range from $0.2 million to $0.5 million on a per claim basis. We do not maintain a self-insured retention pool fund as claims are paid from current cash resources at the time of settlement. Our net cash payments in connection with these insurance liabilities were $2.0 million for the three months ended September 30, 2019, $5.3 million for the nine months ended September 30, 2019, $1.4 million for the three months ended September 30, 2018, and $4.1 million for the nine months ended September 30, 2018.

In addition, as of September 30, 2019, we have recorded insurance liabilities of $9.2 million related to continuing operations, which represents the amount for which we remain the primary obligor after self-insured insurance limits, without taking into consideration the above-referenced insurance coverage. Of this total, $8.5 million related to workers’ compensation liabilities and $0.7 million related to general/auto liability claims, which are recorded in other deferred items and liabilities in the Condensed Consolidated Balance Sheets with a corresponding receivable in other investments.

v3.19.3
Redeemable Noncontrolling Interest
9 Months Ended
Sep. 30, 2019
Noncontrolling Interest [Abstract]  
Redeemable Noncontrolling Interest

Note 21. Redeemable Noncontrolling Interest

On November 3, 2017, we acquired the controlling interest (54.5% of the common stock) in Esja, a private corporation in Reykjavik, Iceland. Through Esja and its wholly-owned subsidiary, we are operating a new FlyOver Iceland attraction.

The minority Esja shareholders have the right to sell (or “put”) their Esja shares to us based on a multiple of 5.0x EBITDA as calculated on the trailing 12 months from the most recently completed quarter before the put option exercise. The put option is only exercisable after 36 months of business operation (the “Reference Date”) and if the FlyOver Iceland attraction has earned a minimum of €3.25 million in unadjusted EBITDA during the most recent fiscal year and during the trailing 12-month period prior to exercise (the “Put Option Condition”). The put option is exercisable during a period of 12 months following the Reference Date (the “Option Period”) if the Put Option Condition has been met. If the Put Option Condition has not been met during the first Option Period, the Reference Date will be extended for an additional 12 months up to three times. If after 72 months, the FlyOver Iceland attraction has not achieved the Put Option Condition, the put option expires. If the Put Option Condition is met during any of the Option Periods, yet the shares are not exercised prior to the end of the 12-month Option Period, the put option will expire. 

The noncontrolling interest’s carrying value is determined by the fair value of the noncontrolling interest as of the acquisition date and the noncontrolling interest’s share of the subsequent net income or loss. This value is benchmarked against the redemption value of

the sellers’ put option. The carrying value is adjusted to the redemption value, provided that it does not fall below the initial carrying value, as determined by the purchase price allocation. We have made a policy election to reflect any changes caused by such an adjustment to retained earnings, rather than to current earnings.

Changes in the redeemable noncontrolling interest are as follows:

 

(in thousands)

 

 

 

 

Balance at December 31, 2018

 

$

5,909

 

Net loss attributable to redeemable noncontrolling interest

 

 

(644

)

Adjustment to the redemption value

 

 

530

 

Foreign currency translation adjustment

 

 

(364

)

Balance at September 30, 2019

 

$

5,431

 

 

v3.19.3
Segment Information
9 Months Ended
Sep. 30, 2019
Segment Reporting [Abstract]  
Segment Information

Note 22. Segment Information

We measure the profit and performance of our operations on the basis of segment operating income (loss) which excludes restructuring charges and recoveries. Intersegment sales are eliminated in consolidation and intersegment transfers are not significant. Corporate activities include expenses not allocated to operations. Depreciation and amortization and share-based compensation expense are the only significant non-cash items for the reportable segments.

During the first quarter of 2019, we realigned GES’ organizational structure. As a result, we changed GES’ reportable segments to reflect how our chief operating decision maker regularly reviews and makes decisions regarding the allocation of resources. Accordingly, GES’ new reportable segments are GES North America and GES EMEA. We made no changes to the Pursuit reportable segment.

Our reportable segments, with reconciliations to consolidated totals, are as follows:

 

 

 

Three Months Ended

 

 

Nine Months Ended

 

 

 

September 30,

 

 

September 30,

 

(in thousands)

 

2019

 

 

2018

 

 

2019

 

 

2018

 

Revenue:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

GES:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

North America

 

$

191,983

 

 

$

200,855

 

 

$

698,906

 

 

$

683,810

 

EMEA

 

 

41,186

 

 

 

47,634

 

 

 

165,067

 

 

 

157,216

 

Intersegment eliminations

 

 

(5,724

)

 

 

(2,379

)

 

 

(14,731

)

 

 

(11,888

)

Total GES

 

 

227,445

 

 

 

246,110

 

 

 

849,242

 

 

 

829,138

 

Pursuit

 

 

135,043

 

 

 

112,053

 

 

 

201,119

 

 

 

170,130

 

Total revenue

 

$

362,488

 

 

$

358,163

 

 

$

1,050,361

 

 

$

999,268

 

Segment operating income (loss):

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

GES:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

North America

 

$

(8,562

)

 

$

1,367

 

 

$

22,635

 

 

$

25,055

 

EMEA

 

 

(3,024

)

 

 

(207

)

 

 

2,775

 

 

 

5,690

 

Total GES

 

 

(11,586

)

 

 

1,160

 

 

 

25,410

 

 

 

30,745

 

Pursuit

 

 

66,392

 

 

 

55,408

 

 

 

64,710

 

 

 

53,770

 

Segment operating income

 

 

54,806

 

 

 

56,568

 

 

 

90,120

 

 

 

84,515

 

Corporate eliminations (1)

 

 

16

 

 

 

18

 

 

 

49

 

 

 

51

 

Corporate activities

 

 

(2,680

)

 

 

(3,777

)

 

 

(7,795

)

 

 

(8,529

)

Operating income

 

 

52,142

 

 

 

52,809

 

 

 

82,374

 

 

 

76,037

 

Interest income

 

 

79

 

 

 

101

 

 

 

260

 

 

 

238

 

Interest expense

 

 

(3,740

)

 

 

(2,608

)

 

 

(9,612

)

 

 

(7,031

)

Multi-employer pension plan withdrawal

 

 

 

 

 

 

 

 

(15,508

)

 

 

 

Other expense

 

 

(281

)

 

 

(527

)

 

 

(1,192

)

 

 

(1,308

)

Restructuring recoveries (charges):

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

GES North America

 

 

(881

)

 

 

(162

)

 

 

(5,139

)

 

 

(402

)

GES EMEA

 

 

(759

)

 

 

(13

)

 

 

(1,501

)

 

 

(467

)

Pursuit

 

 

 

 

 

 

 

 

 

 

 

(140

)

Corporate

 

 

(62

)

 

 

 

 

 

(205

)

 

 

10

 

Impairment recoveries:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Pursuit

 

 

 

 

 

 

 

 

 

 

 

35

 

Legal settlement:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

GES

 

 

 

 

 

 

 

 

(8,500

)

 

 

 

Income from continuing operations before income taxes

 

$

46,498

 

 

$

49,600

 

 

$

40,977

 

 

$

66,972

 

(1)

Corporate eliminations represent the elimination of depreciation expense recorded by Pursuit associated with previously eliminated intercompany profit realized by GES for renovations to Pursuit’s Banff Gondola.

v3.19.3
Common Stock Repurchases
9 Months Ended
Sep. 30, 2019
Equity [Abstract]  
Common Stock Repurchases

Note 23. Common Stock Repurchases

We previously announced our Board of Directors’ authorization to repurchase shares of our common stock from time to time at prevailing market prices. Effective February 7, 2019, our Board of Directors authorized the repurchase of an additional 500,000 shares.

No shares were repurchased on the open market during the nine months ended September 30, 2019. As of September 30, 2019, 600,067 shares remain available for repurchase. During the nine months ended September 30, 2018, we repurchased 175,091 shares on the open market for $9.1 million. Additionally, we repurchased shares related to tax withholding requirements on vested restricted stock awards. Refer to Note 3 – Share-Based Compensation.

v3.19.3
Overview and Basis of Presentation (Policies)
9 Months Ended
Sep. 30, 2019
Organization Consolidation And Presentation Of Financial Statements [Abstract]  
Nature of Business

Nature of Business

We are an international experiential services company with operations principally in the United States, Canada, the United Kingdom, continental Europe, and the United Arab Emirates. We are committed to providing unforgettable experiences to our clients and guests. We operate through three reportable business segments: GES North America, GES EMEA (collectively, “GES”), and Pursuit.

GES

GES is a global, full-service live events company offering a comprehensive range of services to the world’s leading brands and event organizers. GES’ clients include event organizers and corporate brand marketers. Event organizers schedule and run events from start to finish. Corporate brand marketers include exhibitors and domestic and international corporations that want to promote their brands, services and innovations, feature new products, and build business relationships. GES serves corporate brand marketers when they exhibit at shows and when GES is engaged to manage their global exhibit program or produce their proprietary corporate events.

Services and Products Offered

GES provides a full suite of services and products for event organizers and corporate brand marketers through the following lines of business:

 

Core Services. GES provides official contracting services and products, including the design and production of experiences, material handling, rigging, electrical, and other on-site event services.

 

Event Technology. GES offers a comprehensive range of event technology services, including event accommodation solutions, registration and data analytics, and event management tools.

 

Audio-Visual. GES offers a variety of high-impact multi-media services and technology, including video production, lighting design, digital studio services, entertainment services and talent coordination, projection mapping, and computer rental and support.

 

Markets Served

GES provides the above services and products across four live event markets: Exhibitions, Conferences, Corporate Events, and Consumer Events (collectively, “Live Events”).

 

Exhibitions facilitate business-to-business and business-to-consumer sales and marketing.

 

Conferences facilitate attendee education and may also include an expo or trade show to further facilitate attendee education and to facilitate business-to-business and business-to-consumer sales and marketing.  

 

Corporate events facilitate attendee education of the sponsoring company’s products or product ecosystem.  

 

Consumer events entertain, educate, or create an experience, typically around a specific genre.

Pursuit

Pursuit is a collection of inspiring and unforgettable travel experiences that includes world-class recreational attractions, unique hotels and lodges, food and beverage, retail, sightseeing, and ground transportation services.

Services and Products Offered

Pursuit comprises four lines of business: Attractions, including food and beverage services and retail operations; Hospitality, including food and beverage services and retail operations; Transportation; and Travel Planning. Services offered by these lines of business (or a subset of these) include admissions, accommodations, transportation, and travel planning. Products offered include food and beverage and retail operations.

 

Markets Served

Pursuit provides the above services and products across the following geographic markets:

 

The Banff Jasper Collection is a leading travel and tourism provider in the Canadian Rockies in Alberta, Canada with two lodging properties in Banff National Park, eight lodging properties in Jasper National Park, including the recently acquired Mountain Park Lodges, five world-class recreational attractions, food and beverage services, retail operations, sightseeing and transportation services.

 

The Alaska Collection is a leading travel and tourism provider in Alaska with two lodging properties and a sightseeing excursion in Denali National Park and Preserve, a lodge in Talkeetna, Alaska’s top-rated wildlife and glacier cruise, and two lodging properties located near Kenai Fjords National Park. The Alaska Collection also provides food and beverage services and retail operations.

 

The Glacier Park Collection is an operator of nine lodging properties, food and beverage services, and retail operations in and around Glacier National Park in Montana and Waterton Lakes National Park in Alberta, Canada, with a leading share of rooms in the Glacier Park market.

 

FlyOver is a recreational attraction that provides a virtual flight ride experience that combines motion seating, audio-visual media, and special effects including wind, scents, and mist to provide a true flying experience for guests. Our FlyOver attractions include: FlyOver Canada; FlyOver Iceland (Opened August 2019); FlyOver Las Vegas (expected opening in 2021); and FlyOver Toronto (expected opening in 2022).

 

Pursuit announced a plan for a new geothermal lagoon attraction in Iceland. It will be located on an oceanfront lot just outside downtown Reykjavik. We expect to open this new attraction in 2021.

Basis of Presentation

Basis of Presentation

The accompanying unaudited condensed consolidated financial statements were prepared in accordance with accounting principles generally accepted in the United States of America (“GAAP”) and with the instructions to Form 10-Q and Article 10 of Regulation S-X for interim financial information. Accordingly, these financial statements do not include all of the information required by GAAP or SEC rules and regulations for complete financial statements. These financial statements reflect all adjustments (consisting of normal recurring adjustments) necessary for a fair presentation of the results for the interim periods presented. Interim results are not necessarily indicative of the results for the full year. These unaudited condensed consolidated financial statements should be read in conjunction with our Annual Report on Form 10-K for the year ended December 31, 2018, filed with the SEC on February 27, 2019 (“2018 Form 10-K”).

The condensed consolidated financial statements include the accounts of Viad and its subsidiaries. We have eliminated all significant intercompany account balances and transactions in consolidation.

Impact of Recent Accounting Pronouncements

Impact of Recent Accounting Pronouncements

The following table provides a brief description of recent accounting pronouncements:

 

Standard

 

Description

 

Date of adoption

 

Effect on the financial statements

Standards Not Yet Adopted

ASU 2016-13, Financial Instruments – Credit Losses (Topic 326) - Measurement of Credit Losses on Financial Instruments

 

The amendment eliminates the incurred credit loss impairment methodology in current GAAP and replaces it with an expected credit loss concept based on historical experience, current conditions, and reasonable and supportable forecasts.

 

Subsequent to the issuance of ASU 2016-13, the FASB issued additional amendments which do not change the core principle of the guidance stated in ASU 2016-13. Rather, they are intended to clarify and improve understanding of certain topics included within the credit losses standard.

 

January 1, 2020

 

We are currently evaluating the potential impact of the adoption of this new guidance on our consolidated financial statements. We will be required to use a forward-looking expected credit loss model for trade receivables. Adoption of this new standard will be applied using the modified retrospective approach through a cumulative-effect adjustment to retained earnings as of the effective date in an amount necessary to adjust our current credit loss methodology to equal the current estimate of expected losses on financial assets held at that date. We do not expect this new guidance to have a material impact on our consolidated financial statements.

 

Standard

 

Description

 

Date of adoption

 

Effect on the financial statements

Standards Recently Adopted

ASU 2018-15, Intangibles – Goodwill and Other – Internal-Use Software (Subtopic 350-40) Customer’s Accounting for Implementation Costs Incurred in a Cloud Computing Arrangement That Is a Service Contract

 

The amendment aligns the requirements for capitalizing implementation costs incurred in a hosting arrangement that is a service contract with the requirements for capitalizing implementation costs incurred to develop or obtain internal-use software. The amendment also requires an entity to expense the capitalized implementation costs of a hosting arrangement that is a service contract over the term of the hosting arrangement. Early adoption is permitted and may be applied on either a retrospective or prospective basis.

 

September 30, 2019

 

We early adopted this new guidance on a retrospective basis and determined it did not have a material impact on our consolidated financial statements.

ASU 2016-02, Leases (Topic 842)

 

The amendment increases transparency and comparability by requiring the recognition of a right-of-use asset and a lease liability on the balance sheet. The standard also requires more detailed disclosures to enable users of financial statements to understand the nature, amount, timing, and uncertainty of cash flows arising from leases.

 

January 1, 2019

 

We adopted ASU 2016-02 and its related amendments (collectively, “Topic 842”) on January 1, 2019 using the optional transition method. Under this method, a cumulative adjustment to retained earnings is recorded, if any, and prior periods are not restated. We determined there was no cumulative effect adjustment to retained earnings on January 1, 2019.

 

The adoption of Topic 842 did not have a material impact on our Consolidated Statement of Operations. The most significant impact related to facility and equipment leases, which were previously recorded as operating leases. Upon adoption as of January 1, 2019, we recognized an additional right-of-use asset and lease liability of $59 million on the balance sheet. The existing deferred rent liabilities balance, resulting from historical straight-lining of operating leases, was reclassified upon adoption to reduce the measurement of leased assets. Refer to our Leases Significant Accounting Policy immediately following this table and Note 19 - Leases and Other for additional information.

 

 

 

Use of Estimates

Use of Estimates

The preparation of financial statements in conformity with GAAP requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities at the date of the financial statements and the reported amounts of revenue and expenses during the reported period. Estimates and assumptions are used in accounting for, among other things: the fair value of our reporting units used to perform annual impairment testing of recorded goodwill; allowances for uncollectible accounts receivable; provisions for income taxes, including uncertain tax positions; valuation allowances related to deferred tax assets; liabilities for losses related to self-insured liability claims; liabilities for losses related to environmental remediation obligations; sublease income associated with restructuring liabilities; assumptions used to measure pension and postretirement benefit costs and obligations; assumptions used to determine share-based compensation costs under the fair value method; assumptions used to determine the redemption value of redeemable noncontrolling interests; and the allocation of purchase price of acquired businesses. Actual results could differ from these and other estimates.

Revenue Recognition

Revenue Recognition

Revenue is measured based on a specified amount of consideration in a contract with a customer, net of commissions paid to customers and amounts collected on behalf of third parties. We recognize revenue when a performance obligation is satisfied by transferring control of a product or service to a customer.

GES’ service revenue is primarily derived through its comprehensive range of services to event organizers and corporate brand marketers including Core Services, Event Technology, and Audio-Visual. GES’ service revenue is earned over time over the duration of the exhibition, conference, or corporate event, which generally lasts one to three days; however, we recognize service revenue at the close of the event when we have the right to invoice. GES’ product revenue is derived from the build of exhibits and environments and graphics. GES’ product revenue is recognized at a point in time upon delivery of the product.

Pursuit’s service revenue is derived through its admissions, accommodations, transportation, and travel planning services. Pursuit’s product revenue is derived through food and beverage and retail sales. Pursuit’s revenue is recognized at the time services are performed or upon delivery of the product. Pursuit’s service revenue is recognized over time as the customer simultaneously receives and consumes the benefits. Pursuit’s product revenue is recognized at a point in time.

Noncontrolling Interests - Non-redeemable and Redeemable

Noncontrolling Interests – Non-redeemable and Redeemable

Non-redeemable noncontrolling interest represents the portion of equity in a subsidiary that is not attributable, directly or indirectly, to us. Our non-redeemable noncontrolling interest relates to the 20% equity ownership interest that we do not own in Glacier Park, Inc. and the 40% equity interest that we do not own in the recently acquired Mountain Park Lodges. We report non-redeemable noncontrolling interest within stockholders’ equity in the Condensed Consolidated Balance Sheets. The amount of consolidated net income or loss attributable to Viad and the non-redeemable noncontrolling interest is presented in the Condensed Consolidated Statements of Operations.  

Noncontrolling interests with redemption features that are not solely within our control are considered redeemable noncontrolling interests. Our redeemable noncontrolling interest relates to our 54.5% equity ownership interest in Esja Attractions ehf. (“Esja”). The Esja shareholders agreement contains a put option that gives the minority Esja shareholders the right to sell (or “put”) their Esja shares to us based on a calculated formula within a predefined term. This redeemable noncontrolling interest is considered temporary equity and we report it between liabilities and stockholders’ equity in the Condensed Consolidated Balance Sheets. The amount of the net income or loss attributable to redeemable noncontrolling interests is recorded in the Condensed Consolidated Statements of Operations and the accretion of the redemption value is recorded as an adjustment to retained earnings and is included in our income per share. Refer to Note 21 – Redeemable Noncontrolling Interest for additional information.

Leases

Leases

We adopted Topic 842 on January 1, 2019, which requires that we recognize a right-of-use (“ROU”) asset and lease liability on the balance sheet, and requires lessees to classify leases as either finance or operating leases. The classification of the lease determines whether the lease expense is recognized on an effective interest method basis (finance lease) or on a straight-line basis (operating lease) over the lease term. In determining whether an agreement contains a lease, we consider if we have a right to control the use of the underlying asset during the lease term in exchange for an obligation to make lease payments arising from the lease. We recognize ROU assets and lease liabilities at commencement date, which is when the underlying asset is available for use to a lessee, based on the present value of lease payments over the lease term.

Our operating and finance leases are primarily facility, equipment, and land leases. Our facility leases comprise mainly manufacturing facilities, sales and design facilities, offices, storage and/or warehouses, and truck marshaling yards. These facility leases generally have lease terms ranging up to 25 years. Our equipment leases comprise mainly vehicles, hardware, and office equipment, each with various lease terms. Our land leases comprise mainly leases in Canada and Iceland on which our hotels or attractions are located and have lease terms ranging up to 42 years.

We made the accounting policy election not to recognize ROU assets and lease liabilities for leases with a term of twelve months or less. We elected to apply the package of practical expedients permitted under Topic 842 transition guidance, which among other things, allows us to carry forward our historical lease classifications. We also elected the practical expedient to not separate non-lease components from lease components for all asset classes, and payments associated with fixed non-lease components are included in measuring the ROU asset and lease liability.

If a lease contains a renewal option that is reasonably certain to be exercised, then the lease term includes the optional periods in measuring a ROU asset and lease liability. Variable leases and variable non-lease components are not included in the calculation of the ROU asset and corresponding lease liability. For facility leases, variable lease costs include the costs of common area maintenance, taxes, and insurance for which we pay our lessors an estimate that is adjusted to actual expense on a quarterly or annual basis depending on the underlying contract terms. These variable lease payments are expensed as incurred. Upon the adoption of Topic 842, our accounting for finance leases, previously referred to as capital leases, remains substantially unchanged from prior guidance. Our lease agreements do not contain any significant residual value guarantees or restrictive covenants.

Substantially all of our lease agreements do not specify an implicit borrowing rate, and as such, we utilize an incremental borrowing rate based on lease term and country, in order to calculate the present value of our future lease payments. The discount rate represents a risk-adjusted rate on a secured basis, and is the expected rate at which we would borrow funds to satisfy the scheduled lease liability payment streams commensurate with the lease term and the country. On January 1, 2019, the discount rate used on existing leases at adoption was extrapolated based on the remaining lease term and the country using available data as of that date.  For new or renewed leases starting in 2019, the discount rate is determined using available data at lease commencement and based on the lease term and country including any reasonably certain renewal periods.

We are also a lessor to third party tenants who either lease certain portions of facilities that we own or sublease certain portions of facilities that we lease. Lease income from owned facilities is recorded as rental income and sublease income from leased facilities is recorded against lease expense in the Condensed Consolidated Statements of Operations. All of our leases for which we are the lessor are classified as operating leases under Topic 842.

v3.19.3
Revenue and Related Contract Costs and Contract Liabilities (Tables)
9 Months Ended
Sep. 30, 2019
Revenue From Contract With Customer [Abstract]  
Summary of Changes in Contract Liabilities

Changes to contract liabilities are as follows:

(in thousands)

 

 

 

 

Balance at December 31, 2018

 

$

35,600

 

Cash additions

 

 

150,566

 

Revenue recognized

 

 

(123,330

)

Foreign exchange translation adjustment

 

 

(451

)

Balance at September 30, 2019

 

$

62,385

 

Summary of Changes in Contract Costs

Changes to contract costs are as follows:

(in thousands)

 

 

 

 

Balance at December 31, 2018

 

$

21,478

 

Additions

 

 

58,330

 

Expenses

 

 

(44,666

)

Cancelled

 

 

(45

)

Foreign exchange translation adjustment

 

 

(263

)

Balance at September 30, 2019

 

$

34,834

 

Disaggregate GES and Pursuit Revenue by Major Product Line Timing of Revenue Recognition and Markets Served

The following tables disaggregate GES and Pursuit revenue by major product line, timing of revenue recognition, and markets served:

GES

 

 

Three Months Ended September 30, 2019

 

(in thousands)

 

GES North America(1)

 

 

GES EMEA(1)

 

 

Intersegment Eliminations

 

 

Total

 

Services:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Core services

 

$

155,581

 

 

$

22,425

 

 

$

 

 

$

178,006

 

Audio-visual

 

 

18,742

 

 

 

4,402

 

 

 

 

 

 

23,144

 

Event technology

 

 

4,760

 

 

 

1,414

 

 

 

 

 

 

6,174

 

Intersegment eliminations

 

 

 

 

 

 

 

 

(5,724

)

 

 

(5,724

)

Total services

 

 

179,083

 

 

 

28,241

 

 

 

(5,724

)

 

 

201,600

 

Products:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Core products

 

 

12,900

 

 

 

12,945

 

 

 

 

 

 

25,845

 

Total revenue

 

$

191,983

 

 

$

41,186

 

 

$

(5,724

)

 

$

227,445

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Timing of revenue recognition:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Services transferred over time

 

$

179,083

 

 

$

28,241

 

 

$

(5,724

)

 

$

201,600

 

Products transferred over time(2)

 

 

10,558

 

 

 

2,305

 

 

 

 

 

 

12,863

 

Products transferred at a point in time

 

 

2,342

 

 

 

10,640

 

 

 

 

 

 

12,982

 

Total revenue

 

$

191,983

 

 

$

41,186

 

 

$

(5,724

)

 

$

227,445

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Markets:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Exhibitions

 

$

89,088

 

 

$

29,519

 

 

$

 

 

$

118,607

 

Conferences

 

 

56,205

 

 

 

6,320

 

 

 

 

 

 

62,525

 

Corporate events

 

 

41,205

 

 

 

5,147

 

 

 

 

 

 

46,352

 

Consumer events

 

 

5,485

 

 

 

200

 

 

 

 

 

 

5,685

 

Intersegment eliminations

 

 

 

 

 

 

 

 

(5,724

)

 

 

(5,724

)

Total revenue

 

$

191,983

 

 

$

41,186

 

 

$

(5,724

)

 

$

227,445

 

(1)

During the first quarter of 2019, we realigned GES’ organizational structure. As a result, we changed GES’ reportable segments to reflect how our chief operating decision maker regularly reviews and makes decisions regarding the allocation of resources. Accordingly, GES’ new reportable segments are GES North America and GES EMEA.

(2)

GES’ graphics product revenue is recognized over time as it is considered a part of the single performance obligation satisfied over time.

 

 

 

Nine Months Ended September 30, 2019

 

(in thousands)

 

GES North America(1)

 

 

GES EMEA(1)

 

 

Intersegment Eliminations

 

 

Total

 

Services:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Core services

 

$

563,566

 

 

$

95,309

 

 

$

 

 

$

658,875

 

Audio-visual

 

 

61,323

 

 

 

15,171

 

 

 

 

 

 

76,494

 

Event technology

 

 

23,368

 

 

 

6,501

 

 

 

 

 

 

29,869

 

Intersegment eliminations

 

 

 

 

 

 

 

 

(14,731

)

 

 

(14,731

)

Total services

 

 

648,257

 

 

 

116,981

 

 

 

(14,731

)

 

 

750,507

 

Products:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Core products

 

 

50,649

 

 

 

48,086

 

 

 

 

 

 

98,735

 

Total revenue

 

$

698,906

 

 

$

165,067

 

 

$

(14,731

)

 

$

849,242

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Timing of revenue recognition:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Services transferred over time

 

$

648,257

 

 

$

116,981

 

 

$

(14,731

)

 

$

750,507

 

Products transferred over time(2)

 

 

33,601

 

 

 

10,595

 

 

 

 

 

 

44,196

 

Products transferred at a point in time

 

 

17,048

 

 

 

37,491

 

 

 

 

 

 

54,539

 

Total revenue

 

$

698,906

 

 

$

165,067

 

 

$

(14,731

)

 

$

849,242

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Markets:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Exhibitions

 

$

364,404

 

 

$

124,467

 

 

$

 

 

$

488,871

 

Conferences

 

 

209,522

 

 

 

20,172

 

 

 

 

 

 

229,694

 

Corporate events

 

 

103,860

 

 

 

19,464

 

 

 

 

 

 

123,324

 

Consumer events

 

 

21,120

 

 

 

964

 

 

 

 

 

 

22,084

 

Intersegment eliminations

 

 

 

 

 

 

 

 

(14,731

)

 

 

(14,731

)

Total revenue

 

$

698,906

 

 

$

165,067

 

 

$

(14,731

)

 

$

849,242

 

 

(1)

During the first quarter of 2019, we realigned GES’ organizational structure. As a result, we changed GES’ reportable segments to reflect how our chief operating decision maker regularly reviews and makes decisions regarding the allocation of resources. Accordingly, GES’ new reportable segments are GES North America and GES EMEA.

(2)

GES’ graphics product revenue is recognized over time as it is considered a part of the single performance obligation satisfied over time.

 

 

 

 

Three Months Ended September 30, 2018

 

(in thousands)

 

GES North America(1)

 

 

GES EMEA(1)

 

 

Intersegment Eliminations

 

 

Total

 

Services:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Core services

 

$

162,967

 

 

$

27,511

 

 

$

 

 

$

190,478

 

Audio-visual

 

 

17,309

 

 

 

4,423

 

 

 

 

 

 

21,732

 

Event technology

 

 

4,874

 

 

 

1,745

 

 

 

 

 

 

6,619

 

Intersegment eliminations

 

 

 

 

 

 

 

 

(2,379

)

 

 

(2,379

)

Total services

 

 

185,150

 

 

 

33,679

 

 

 

(2,379

)

 

 

216,450

 

Products:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Core products

 

 

15,705

 

 

 

13,955

 

 

 

 

 

 

29,660

 

Total revenue

 

$

200,855

 

 

$

47,634

 

 

$

(2,379

)

 

$

246,110

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Timing of revenue recognition:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Services transferred over time

 

$

185,150

 

 

$

33,679

 

 

$

(2,379

)

 

$

216,450

 

Products transferred over time(2)

 

 

10,645

 

 

 

2,862

 

 

 

 

 

 

13,507

 

Products transferred at a point in time

 

 

5,060

 

 

 

11,093

 

 

 

 

 

 

16,153

 

Total revenue

 

$

200,855

 

 

$

47,634

 

 

$

(2,379

)

 

$

246,110

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Markets:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Exhibitions

 

$

114,387

 

 

$

35,787

 

 

$

 

 

$

150,174

 

Conferences

 

 

42,053

 

 

 

4,232

 

 

 

 

 

 

46,285

 

Corporate events

 

 

35,555

 

 

 

6,728

 

 

 

 

 

 

42,283

 

Consumer events

 

 

8,860

 

 

 

887

 

 

 

 

 

 

9,747

 

Intersegment eliminations

 

 

 

 

 

 

 

 

(2,379

)

 

 

(2,379

)

Total revenue

 

$

200,855

 

 

$

47,634

 

 

$

(2,379

)

 

$

246,110

 

 

(1)

During the first quarter of 2019, we realigned GES’ organizational structure. As a result, we changed GES’ reportable segments to reflect how our chief operating decision maker regularly reviews and makes decisions regarding the allocation of resources. Accordingly, GES’ new reportable segments are GES North America and GES EMEA.

(2)

GES’ graphics product revenue is recognized over time as it is considered a part of the single performance obligation satisfied over time.

 

 

 

 

Nine Months Ended September 30, 2018

 

(in thousands)

 

GES North America(1)

 

 

GES EMEA(1)

 

 

Intersegment Eliminations

 

 

Total

 

Services:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Core services

 

$

555,175

 

 

$

88,270

 

 

$

 

 

$

643,445

 

Audio-visual

 

 

55,134

 

 

 

14,144

 

 

 

 

 

 

69,278

 

Event technology

 

 

23,443

 

 

 

7,866

 

 

 

 

 

 

31,309

 

Intersegment eliminations

 

 

 

 

 

 

 

 

(11,888

)

 

 

(11,888

)

Total services

 

 

633,752

 

 

 

110,280

 

 

 

(11,888

)

 

 

732,144

 

Products:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Core products

 

 

50,058

 

 

 

46,936

 

 

 

 

 

 

96,994

 

Total revenue

 

$

683,810

 

 

$

157,216

 

 

$

(11,888

)

 

$

829,138

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Timing of revenue recognition:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Services transferred over time

 

$

633,752

 

 

$

110,280

 

 

$

(11,888

)

 

$

732,144

 

Products transferred over time(2)

 

 

32,982

 

 

 

11,018

 

 

 

 

 

 

44,000

 

Products transferred at a point in time

 

 

17,076

 

 

 

35,918

 

 

 

 

 

 

52,994

 

Total revenue

 

$

683,810

 

 

$

157,216

 

 

$

(11,888

)

 

$

829,138

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Markets:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Exhibitions

 

$

397,945

 

 

$

116,410

 

 

$

 

 

$

514,355

 

Conferences

 

 

170,910

 

 

 

21,677

 

 

 

 

 

 

192,587

 

Corporate events

 

 

93,797

 

 

 

17,170

 

 

 

 

 

 

110,967

 

Consumer events

 

 

21,158

 

 

 

1,959

 

 

 

 

 

 

23,117

 

Intersegment eliminations

 

 

 

 

 

 

 

 

(11,888

)

 

 

(11,888

)

Total revenue

 

$

683,810

 

 

$

157,216

 

 

$

(11,888

)

 

$

829,138

 

 

(1)

During the first quarter of 2019, we realigned GES’ organizational structure. As a result, we changed GES’ reportable segments to reflect how our chief operating decision maker regularly reviews and makes decisions regarding the allocation of resources. Accordingly, GES’ new reportable segments are GES North America and GES EMEA.

(2)

GES’ graphics product revenue is recognized over time as it is considered a part of the single performance obligation satisfied over time.

 

Pursuit

 

 

 

Three Months Ended

 

 

Nine Months Ended

 

 

 

September 30,

 

 

September 30,

 

(in thousands)

 

2019

 

 

2018

 

 

2019

 

 

2018

 

Services:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Admissions

 

$

49,353

 

 

$

51,316

 

 

$

76,034

 

 

$

78,375

 

Accommodations

 

 

41,292

 

 

 

24,623

 

 

 

56,636

 

 

 

35,358

 

Transportation

 

 

6,868

 

 

 

7,602

 

 

 

12,817

 

 

 

14,292

 

Travel planning

 

 

2,004

 

 

 

651

 

 

 

4,107

 

 

 

1,450

 

Intersegment eliminations

 

 

(671

)

 

 

(554

)

 

 

(1,355

)

 

 

(1,260

)

Total services revenue

 

 

98,846

 

 

 

83,638

 

 

 

148,239

 

 

 

128,215

 

Products:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Food and beverage

 

 

19,333

 

 

 

16,074

 

 

 

28,903

 

 

 

23,998

 

Retail operations

 

 

16,864

 

 

 

12,341

 

 

 

23,977

 

 

 

17,917

 

Total products revenue

 

 

36,197

 

 

 

28,415

 

 

 

52,880

 

 

 

41,915

 

Total revenue

 

$

135,043

 

 

$

112,053

 

 

$

201,119

 

 

$

170,130

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Timing of revenue recognition:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Services transferred over time

 

$

98,846

 

 

$

83,638

 

 

$

148,239

 

 

$

128,215

 

Products transferred at a point in time

 

 

36,197

 

 

 

28,415

 

 

 

52,880

 

 

 

41,915

 

Total revenue

 

$

135,043

 

 

$

112,053

 

 

$

201,119

 

 

$

170,130

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Markets:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Banff Jasper Collection

 

$

75,337

 

 

$

58,525

 

 

$

116,433

 

 

$

94,133

 

Alaska Collection

 

 

26,909

 

 

 

25,546

 

 

 

39,287

 

 

 

36,373

 

Glacier Park Collection

 

 

28,098

 

 

 

23,418

 

 

 

36,296

 

 

 

30,684

 

FlyOver

 

 

4,699

 

 

 

4,564

 

 

 

9,103

 

 

 

8,940

 

Total revenue

 

$

135,043

 

 

$

112,053

 

 

$

201,119

 

 

$

170,130

 

v3.19.3
Share-Based Compensation (Tables)
9 Months Ended
Sep. 30, 2019
Disclosure Of Compensation Related Costs Sharebased Payments [Abstract]  
Summary of Share-Based Compensation Expense

The following table summarizes share-based compensation expense:

 

 

 

Three Months Ended

 

 

Nine Months Ended

 

 

 

September 30,

 

 

September 30,

 

(in thousands)

 

2019

 

 

2018

 

 

2019

 

 

2018

 

Performance unit incentive plan (“PUP”)

 

$

1,033

 

 

$

1,607

 

 

$

4,013

 

 

$

3,125

 

Restricted stock

 

 

687

 

 

 

609

 

 

 

2,163

 

 

 

1,779

 

Restricted stock units

 

 

111

 

 

 

78

 

 

 

272

 

 

 

152

 

Share-based compensation before income tax benefit

 

 

1,831

 

 

 

2,294

 

 

 

6,448

 

 

 

5,056

 

Income tax benefit

 

 

(460

)

 

 

(580

)

 

 

(1,625

)

 

 

(1,276

)

Share-based compensation, net of income tax benefit

 

$

1,371

 

 

$

1,714

 

 

$

4,823

 

 

$

3,780

 

Summary of Activity of the Outstanding Share-Based Compensation Awards

The following table summarizes the activity of the outstanding share-based compensation awards:

 

 

 

PUP Awards

 

 

Restricted Stock

 

 

Restricted Stock Units

 

 

 

Shares

 

 

Weighted-Average

Grant Date

Fair Value

 

 

Shares

 

 

Weighted-Average

Grant Date

Fair Value

 

 

Shares

 

 

Weighted-Average

Grant Date

Fair Value

 

Balance at December 31, 2018

 

 

239,809

 

 

$

40.65

 

 

 

176,769

 

 

$

40.87

 

 

 

12,090

 

 

$

39.04

 

Granted

 

 

73,418

 

 

$

58.28

 

 

 

55,440

 

 

$

57.86

 

 

 

5,025

 

 

$

56.81

 

Vested

 

 

(95,309

)

 

$

26.98

 

 

 

(82,647

)

 

$

32.15

 

 

 

(5,377

)

 

$

26.98

 

Forfeited

 

 

(2,192

)

 

$

55.92

 

 

 

(5,323

)

 

$

50.03

 

 

 

(115

)

 

$

52.15

 

Balance at September 30, 2019

 

 

215,726

 

 

$

52.54

 

 

 

144,239

 

 

$

52.05

 

 

 

11,623

 

 

$

52.17

 

Summary of Stock Option Activity

The following table summarizes stock option activity:

 

 

 

Shares

 

 

Weighted-Average

Exercise Price

 

Options outstanding and exercisable at December 31, 2018

 

 

58,689

 

 

$

16.62

 

Exercised

 

 

(5,546

)

 

$

16.62

 

Options outstanding and exercisable at September 30, 2019

 

 

53,143

 

 

$

16.62

 

v3.19.3
Acquisition of Businesses (Tables)
9 Months Ended
Sep. 30, 2019
Business Combinations [Abstract]  
Schedule of Recognized Identified Assets Acquired and Liabilities Assumed

The following table summarizes the preliminary recording of the fair value allocation of the assets acquired and liabilities assumed as of the date of acquisition. During the three months ended September 30, 2019, we made certain purchase accounting measurement period adjustments based on refinements to assumptions used in the preliminary valuation. The purchase price allocation is not yet final and is subject to change within the measurement period (up to one year from the acquisition date) as the valuation of property and equipment, intangible assets, and working capital is finalized.

 

(in thousands)

 

 

 

 

 

 

 

 

Purchase price paid as:

 

 

 

 

 

 

 

 

Cash

 

 

 

 

 

$

70,975

 

Cash - Additional purchase price paid for tax liability

 

 

 

 

 

 

4,862

 

Net working capital adjustment

 

 

 

 

 

 

18

 

Consideration transferred

 

 

 

 

 

 

75,855

 

Right to manage

 

 

 

 

 

 

(1,276

)

Purchase price, net

 

 

 

 

 

 

74,579

 

 

 

 

 

 

 

 

 

 

Fair value of net assets acquired:

 

 

 

 

 

 

 

 

Accounts receivable

 

$

333

 

 

 

 

 

Inventories

 

 

152

 

 

 

 

 

Prepaid expenses

 

 

276

 

 

 

 

 

Property and equipment

 

 

101,840

 

 

 

 

 

Intangible assets

 

 

21,982

 

 

 

 

 

Total assets acquired

 

 

124,583

 

 

 

 

 

Accounts payable

 

 

329

 

 

 

 

 

Advanced deposits payable

 

 

400

 

 

 

 

 

Deferred tax liability

 

 

11,463

 

 

 

 

 

Other liabilities

 

 

16

 

 

 

 

 

Total liabilities assumed

 

 

12,208

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Noncontrolling interest equity

 

 

49,719

 

 

 

 

 

Total fair value of net assets acquired

 

 

 

 

 

 

62,656

 

Excess purchase price over fair value of net assets acquired (“goodwill”)

 

 

 

 

 

$

11,923

 

Schedule of Proforma Results of Operations

The following table summarizes the unaudited pro forma results of operations attributable to Viad, assuming the Mountain Park Lodges acquisition had been completed on January 1, 2018:

 

 

 

Three Months Ended

 

 

Nine Months Ended

 

(in thousands, except per share data)

 

September 30, 2019

 

 

September 30, 2018

 

 

September 30, 2019

 

 

September 30, 2018

 

Revenue

 

$

362,488

 

 

$

370,025

 

 

$

1,058,622

 

 

$

1,022,463

 

Depreciation and amortization

 

$

16,347

 

 

$

17,529

 

 

$

46,695

 

 

$

48,455

 

Income (loss) from continuing operations

 

$

34,607

 

 

$

42,500

 

 

$

28,709

 

 

$

53,651

 

Net income (loss) attributable to Viad

 

$

31,416

 

 

$

39,549

 

 

$

26,765

 

 

$

52,334

 

Diluted income (loss) per share

 

$

1.53

 

 

$

1.94

 

 

$

1.29

 

 

$

2.55

 

Basic income (loss) per share

 

$

1.53

 

 

$

1.94

 

 

$

1.29

 

 

$

2.56

 

v3.19.3
Inventories (Tables)
9 Months Ended
Sep. 30, 2019
Inventory Disclosure [Abstract]  
Components of Inventories

The components of inventories consisted of the following:

 

 

 

September 30,

 

 

December 31,

 

(in thousands)

 

2019

 

 

2018

 

Raw materials

 

$

10,656

 

 

$

12,368

 

Finished goods

 

 

5,667

 

 

 

4,261

 

Inventories

 

$

16,323

 

 

$

16,629

 

v3.19.3
Other Current Assets (Tables)
9 Months Ended
Sep. 30, 2019
Deferred Costs Capitalized Prepaid And Other Assets Disclosure [Abstract]  
Schedule of Other Current Assets

Other current assets consisted of the following:

 

 

 

September 30,

 

 

December 31,

 

(in thousands)

 

2019

 

 

2018

 

Income tax receivable

 

$

9,672

 

 

$

10,886

 

Prepaid software maintenance

 

 

5,070

 

 

 

4,010

 

Prepaid vendor payments

 

 

3,992

 

 

 

4,492

 

Prepaid insurance

 

 

2,521

 

 

 

2,754

 

Prepaid taxes

 

 

1,625

 

 

 

591

 

Prepaid other

 

 

2,737

 

 

 

1,755

 

Other

 

 

966

 

 

 

998

 

Other current assets

 

$

26,583

 

 

$

25,486

 

 

 

v3.19.3
Property and Equipment (Tables)
9 Months Ended
Sep. 30, 2019
Property Plant And Equipment [Abstract]  
Schedule of Property and Equipment

Property and equipment consisted of the following:

 

 

 

September 30,

 

 

December 31,

 

(in thousands)

 

2019

 

 

2018

 

Land and land interests

 

$

33,984

 

 

$

32,887

 

Buildings and leasehold improvements

 

 

366,633

 

 

 

238,995

 

Equipment and other

 

 

411,824

 

 

 

383,284

 

Gross property and equipment

 

 

812,441

 

 

 

655,166

 

Accumulated depreciation

 

 

(351,165

)

 

 

(321,319

)

Property and equipment, net (excluding finance leases)

 

 

461,276

 

 

 

333,847

 

Finance lease right-of-use assets, net

 

 

25,257

 

 

 

 

Property and equipment, net

 

$

486,533

 

 

$

333,847

 

v3.19.3
Other Investments and Assets (Tables)
9 Months Ended
Sep. 30, 2019
Investments All Other Investments [Abstract]  
Summary of Other Investments and Assets

Other investments and assets consisted of the following:

 

 

 

September 30,

 

 

December 31,

 

(in thousands)

 

2019

 

 

2018

 

Cash surrender value of life insurance

 

$

24,060

 

 

$

23,815

 

Self-insured liability receivable

 

 

9,176

 

 

 

9,176

 

Contract costs

 

 

3,175

 

 

 

3,461

 

Other mutual funds

 

 

2,933

 

 

 

2,517

 

Other

 

 

3,159

 

 

 

3,941

 

Other investments and assets

 

$

42,503

 

 

$

42,910

 

 

v3.19.3
Goodwill and Other Intangible Assets (Tables)
9 Months Ended
Sep. 30, 2019
Goodwill And Intangible Assets Disclosure [Abstract]  
Summary of the Goodwill Balances by Component and Segment

The changes in the carrying amount of goodwill are as follows:

 

(in thousands)

 

GES North America

 

 

GES EMEA

 

 

Pursuit

 

 

Total

 

Balance at December 31, 2018

 

$

154,944

 

 

$

29,954

 

 

$

76,432

 

 

$

261,330

 

Business acquisitions

 

 

 

 

 

 

 

 

12,413

 

 

 

12,413

 

Foreign currency translation adjustments

 

 

200

 

 

 

(1,126

)

 

 

1,506

 

 

 

580

 

Other adjustment

 

 

 

 

 

 

 

 

1,245

 

 

 

1,245

 

Balance at September 30, 2019

 

$

155,144

 

 

$

28,828

 

 

$

91,596

 

 

$

275,568

 

Summary of Other Intangible Assets

Other intangible assets consisted of the following:

 

 

 

 

 

September 30, 2019

 

 

December 31, 2018

 

(in thousands)

 

Useful Life

(Years)

 

Gross Carrying

Value

 

 

Accumulated

Amortization

 

 

Net Carrying Value

 

 

Gross Carrying

Value

 

 

Accumulated

Amortization

 

 

Net Carrying Value

 

Intangible assets subject to amortization:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Customer contracts and relationships

 

7.4

 

$

73,249

 

 

$

(36,645

)

 

$

36,604

 

 

$

67,729

 

 

$

(31,201

)

 

$

36,528

 

Operating contracts and licenses

 

26.6

 

 

23,933

 

 

 

(1,803

)

 

 

22,130

 

 

 

9,180

 

 

 

(1,376

)

 

 

7,804

 

Tradenames

 

6.8

 

 

9,289

 

 

 

(4,100

)

 

 

5,189

 

 

 

7,705

 

 

 

(3,109

)

 

 

4,596

 

Non-compete agreements

 

2.3

 

 

5,149

 

 

 

(4,816

)

 

 

333

 

 

 

5,174

 

 

 

(4,080

)

 

 

1,094

 

Other

 

8.1

 

 

16,148

 

 

 

(835

)

 

 

15,313

 

 

 

1,365

 

 

 

(553

)

 

 

812

 

Total amortized intangible assets

 

 

 

 

127,768

 

 

 

(48,199

)

 

 

79,569

 

 

 

91,153

 

 

 

(40,319

)

 

 

50,834

 

Indefinite-lived intangible assets:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Business licenses

 

 

 

 

460

 

 

 

 

 

 

460

 

 

 

460

 

 

 

 

 

 

460

 

Other intangible assets

 

 

 

$

128,228

 

 

$

(48,199

)

 

$

80,029

 

 

$

91,613

 

 

$

(40,319

)

 

$

51,294

 

Estimated Future Amortization Expense Related to Intangible Assets Subject to Amortization At September 30, 2019, the estimated future amortization expense related to intangible assets subject to amortization is as follows:

 

(in thousands)

 

 

 

 

Year ending December 31,

 

 

 

 

Remainder of 2019

 

$

2,569

 

2020

 

 

10,030

 

2021

 

 

8,987

 

2022

 

 

7,698

 

2023

 

 

6,481

 

Thereafter

 

 

43,804

 

Total

 

$

79,569

 

v3.19.3
Other Current Liabilities (Tables)
9 Months Ended
Sep. 30, 2019
Other Liabilities Current [Abstract]  
Other Current Liabilities

Other current liabilities consisted of the following:

 

 

 

September 30,

 

 

December 31,

 

(in thousands)

 

2019

 

 

2018

 

Continuing operations:

 

 

 

 

 

 

 

 

Commissions payable

 

$

8,660

 

 

$

2,703

 

Self-insured liability

 

 

6,161

 

 

 

5,688

 

Accrued sales and use taxes

 

 

5,183

 

 

 

5,397

 

Accrued employee benefit costs

 

 

4,493

 

 

 

3,224

 

Accrued income tax payable

 

 

3,623

 

 

 

 

Accrued legal settlement

 

 

2,500

 

 

 

 

Current portion of pension and postretirement liabilities

 

 

2,134

 

 

 

2,310

 

Accrued dividends

 

 

2,010

 

 

 

2,012

 

Accrued restructuring

 

 

1,753

 

 

 

716

 

Accommodation services deposits

 

 

1,483

 

 

 

1,541

 

Accrued professional fees

 

 

1,261

 

 

 

886

 

Deferred rent (1)

 

 

 

 

 

1,659

 

Other taxes

 

 

1,139

 

 

 

695

 

Other

 

 

3,462

 

 

 

4,501

 

Total continuing operations

 

 

43,862

 

 

 

31,332

 

Discontinued operations:

 

 

 

 

 

 

 

 

Environmental remediation liabilities

 

 

407

 

 

 

555

 

Self-insured liability

 

 

252

 

 

 

295

 

Other

 

 

76

 

 

 

76

 

Total discontinued operations

 

 

735

 

 

 

926

 

Total other current liabilities

 

$

44,597

 

 

$

32,258

 

 

(1)

Upon the adoption of Topic 842, we reclassified deferred rent to operating lease obligations. We did not recast prior year financial statements under the new standard. Refer to Note 19 – Leases and Other for additional information.

v3.19.3
Other Deferred Items and Liabilities (Tables)
9 Months Ended
Sep. 30, 2019
Other Liabilities Disclosure [Abstract]  
Summary of Other Deferred Items and Liabilities

Other deferred items and liabilities consisted of the following:

 

 

 

September 30,

 

 

December 31,

 

(in thousands)

 

2019

 

 

2018

 

Continuing operations:

 

 

 

 

 

 

 

 

Foreign deferred tax liability

 

$

17,933

 

 

$

9,768

 

Multi-employer pension plan withdrawal liability

 

 

15,508

 

 

 

 

Self-insured liability

 

 

9,429

 

 

 

10,681

 

Self-insured excess liability

 

 

9,176

 

 

 

9,176

 

Accrued compensation

 

 

7,104

 

 

 

6,664

 

Accrued restructuring

 

 

2,200

 

 

 

1,535

 

Contract liabilities

 

 

125

 

 

 

2,124

 

Deferred rent (1)

 

 

 

 

 

2,719

 

Other

 

 

3,093

 

 

 

1,868

 

Total continuing operations

 

 

64,568

 

 

 

44,535

 

Discontinued operations:

 

 

 

 

 

 

 

 

Self-insured liability

 

 

2,273

 

 

 

2,437

 

Environmental remediation liabilities

 

 

1,871

 

 

 

1,775

 

Other

 

 

497

 

 

 

244

 

Total discontinued operations

 

 

4,641

 

 

 

4,456

 

Total other deferred items and liabilities

 

$

69,209

 

 

$

48,991

 

 

(1)

Upon the adoption of Topic 842, we reclassified deferred rent to operating lease obligations. We did not recast prior year financial statements under the new standard. Refer to Note 19 – Leases and Other for additional information.

v3.19.3
Debt and Finance Lease Obligations (Tables)
9 Months Ended
Sep. 30, 2019
Debt Disclosure [Abstract]  
Schedule of Long-term Debt and Finance Lease Obligations

The components of our long-term debt and finance lease obligations consisted of the following:

 

 

 

September 30,

 

 

December 31,

 

(in thousands, except interest rates)

 

2019

 

 

2018

 

2018 Credit Facility, 4.1% weighted-average interest rate at September 30, 2019 and 4.3% at December 31, 2018, due through 2023(1)

 

$

295,378

 

 

$

227,792

 

FlyOver Iceland Credit Facility, 4.9% weighted-average interest rate at September 30, 2019, due through 2022(1)

 

 

5,452

 

 

 

 

Less unamortized debt issuance costs

 

 

(1,925

)

 

 

(2,310

)

Total debt (2)

 

 

298,905

 

 

 

225,482

 

Finance lease obligations, 6.2% weighted-average interest rate at September 30, 2019 and 4.5% at December 31, 2018, due through 2021

 

 

25,330

 

 

 

4,639

 

Total debt and finance lease obligations (3)

 

 

324,235

 

 

 

230,121

 

Current portion (4)

 

 

(298,940

)

 

 

(229,416

)

Long-term debt and finance lease obligations

 

$

25,295

 

 

$

705

 

(1)

Represents the weighted-average interest rate in effect at the respective periods, including any applicable margin. The interest rates do not include amortization of debt issuance costs or commitment fees.

(2)

The estimated fair value of total debt was $297.8 million as of September 30, 2019 and $228.6 million as of December 31, 2018. The fair value of debt was estimated by discounting the future cash flows using rates currently available for debt of similar terms and maturity, which is a Level 2 measurement. Refer to Note 13 – Fair Value Measurements.

(3)

Cash paid for interest on debt was $8.8 million for the nine months ended September 30, 2019 and $6.2 million for the nine months ended September 30, 2018.

(4)

Borrowings under the 2018 Credit Facility are classified as current because all borrowed amounts are due within one year.

v3.19.3
Fair Value Measurements (Tables)
9 Months Ended
Sep. 30, 2019
Fair Value Disclosures [Abstract]  
Summary of Fair Value Assets Measured on Recurring Basis The fair value information related to these assets is summarized in the following tables:

 

 

 

 

 

 

 

Fair Value Measurements at Reporting Date Using

 

(in thousands)

 

September 30, 2019

 

 

Quoted Prices in

Active

Markets

(Level 1)

 

 

Significant

Other

Observable

Inputs

(Level 2)

 

 

Significant

Unobservable

Inputs

(Level 3)

 

Assets:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Money market funds (1)

 

$

122

 

 

$

122

 

 

$

 

 

$

 

Other mutual funds (2)

 

 

2,933

 

 

 

2,933

 

 

 

 

 

 

 

Total assets at fair value on a recurring basis

 

$

3,055

 

 

$

3,055

 

 

$

 

 

$

 

 

 

 

 

 

 

 

Fair Value Measurements at Reporting Date Using

 

(in thousands)

 

December 31, 2018

 

 

Quoted Prices

in Active

Markets

(Level 1)

 

 

Significant

Other

Observable

Inputs

(Level 2)

 

 

Significant

Unobservable

Inputs

(Level 3)

 

Assets:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Money market funds (1)

 

$

121

 

 

$

121

 

 

$

 

 

$

 

Other mutual funds (2)

 

 

2,517

 

 

 

2,517

 

 

 

 

 

 

 

Total assets at fair value on a recurring basis

 

$

2,638

 

 

$

2,638

 

 

$

 

 

$

 

(1)

Money market funds are included in “Cash and cash equivalents” in the Condensed Consolidated Balance Sheets. These investments are classified as available-for-sale and are recorded at fair value. There have been no realized gains or losses related to these investments and we have not experienced any redemption restrictions with respect to any of the money market mutual funds.

(2)

Other mutual funds are included in “Other investments and assets” in the Condensed Consolidated Balance Sheets.

v3.19.3
Accumulated Other Comprehensive Income (Loss) (Tables)
9 Months Ended
Sep. 30, 2019
Accumulated Other Comprehensive Income Loss [Abstract]  
Schedule of Accumulated Other Comprehensive Income (Loss)

Changes in accumulated other comprehensive income (“AOCI”) by component are as follows:

 

(in thousands)

 

Cumulative

Foreign Currency Translation Adjustments

 

 

Unrecognized Net Actuarial Loss and Prior Service Credit, Net

 

 

Accumulated

Other

Comprehensive

Income (Loss)

 

Balance at December 31, 2018

 

$

(36,332

)

 

$

(11,643

)

 

$

(47,975

)

Other comprehensive income before reclassifications

 

 

3,868

 

 

 

 

 

 

3,868

 

Amounts reclassified from AOCI, net of tax

 

 

 

 

 

196

 

 

 

196

 

Net other comprehensive income

 

 

3,868

 

 

 

196

 

 

 

4,064

 

Balance at September 30, 2019

 

$

(32,464

)

 

$

(11,447

)

 

$

(43,911

)

 

(in thousands)

 

Unrealized Gains on Investments

 

 

Cumulative

Foreign Currency Translation Adjustments

 

 

Unrecognized Net Actuarial Loss and Prior Service Credit, Net

 

 

Accumulated

Other

Comprehensive

Income (Loss)

 

Balance at December 31, 2017

 

$

616

 

 

$

(12,026

)

 

$

(11,158

)

 

$

(22,568

)

Other comprehensive loss before reclassifications

 

 

 

 

 

(7,864

)

 

 

 

 

 

(7,864

)

Amounts reclassified from AOCI, net of tax

 

 

 

 

 

 

 

 

(715

)

 

 

(715

)

Net other comprehensive loss

 

 

 

 

 

(7,864

)

 

 

(715

)

 

 

(8,579

)

Adoption of ASU 2016-01(1)

 

 

(616

)

 

 

 

 

 

 

 

 

(616

)

Balance at September 30, 2018

 

$

 

 

$

(19,890

)

 

$

(11,873

)

 

$

(31,763

)

 

(1)

Upon the adoption of ASU 2016-01, Financial Instruments – Overall: Recognition and Measurement of Financial Assets and Financial Liabilities, we recorded a cumulative-effect adjustment from unrealized gains on investments to beginning retained earnings.

v3.19.3
Income Per Share (Tables)
9 Months Ended
Sep. 30, 2019
Earnings Per Share [Abstract]  
Reconciliation of Basic and Diluted Income Per Share

The components of basic and diluted income per share are as follows:

 

 

 

Three Months Ended

 

 

Nine Months Ended

 

 

 

September 30,

 

 

September 30,

 

(in thousands, except per share data)

 

2019

 

 

2018

 

 

2019

 

 

2018

 

Net income attributable to Viad (diluted)

 

$

31,416

 

 

$

37,389

 

 

$

27,463

 

 

$

51,492

 

Less: Allocation to non-vested shares

 

 

(226

)

 

 

(338

)

 

 

(196

)

 

 

(493

)

Adjustment to the redemption value of redeemable noncontrolling interest

 

 

(264

)

 

 

(84

)

 

 

(530

)

 

 

(174

)

Net income allocated to Viad common stockholders (basic)

 

$

30,926

 

 

$

36,967

 

 

$

26,737

 

 

$

50,825

 

Basic weighted-average outstanding common shares

 

 

20,168

 

 

 

20,145

 

 

 

20,129

 

 

 

20,187

 

Additional dilutive shares related to share-based compensation

 

 

143

 

 

 

242

 

 

 

138

 

 

 

240

 

Diluted weighted-average outstanding shares

 

 

20,311

 

 

 

20,387

 

 

 

20,267

 

 

 

20,427

 

Income per share:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Basic income attributable to Viad common stockholders

 

$

1.53

 

 

$

1.84

 

 

$

1.33

 

 

$

2.52

 

Diluted income attributable to Viad common stockholders

 

$

1.53

 

 

$

1.83

 

 

$

1.33

 

 

$

2.51

 

 

v3.19.3
Pension and Postretirement Benefits (Tables)
9 Months Ended
Sep. 30, 2019
Compensation And Retirement Disclosure [Abstract]  
Components of Net Periodic Benefit Cost of Pension and Postretirement Benefit Plans

The components of net periodic benefit cost of our pension and postretirement benefit plans for the three months ended September 30, 2019 and 2018 consist of the following:

 

 

 

Domestic Plans

 

 

 

 

 

 

 

 

 

 

 

Pension Plans

 

 

Postretirement Benefit Plans

 

 

Foreign Pension Plans

 

(in thousands)

 

2019

 

 

2018

 

 

2019

 

 

2018

 

 

2019

 

 

2018

 

Service cost

 

$

15

 

 

$

13

 

 

$

13

 

 

$

4

 

 

$

101

 

 

$

138

 

Interest cost

 

 

209

 

 

 

198

 

 

 

93

 

 

 

129

 

 

 

92

 

 

 

91

 

Expected return on plan assets

 

 

(35

)

 

 

(65

)

 

 

 

 

 

 

 

 

(122

)

 

 

(126

)

Amortization of prior service credit

 

 

 

 

 

 

 

 

(47

)

 

 

(51

)

 

 

 

 

 

 

Recognized net actuarial loss

 

 

96

 

 

 

124

 

 

 

(43

)

 

 

187

 

 

 

37

 

 

 

38

 

Net periodic benefit cost

 

$

285

 

 

$

270

 

 

$

16

 

 

$

269

 

 

$

108

 

 

$

141

 

The components of net periodic benefit cost of our pension and postretirement benefit plans for the nine months ended September 30, 2019 and 2018 consist of the following:

 

 

 

Domestic Plans

 

 

 

 

 

 

 

 

 

 

 

Pension Plans

 

 

Postretirement Benefit Plans

 

 

Foreign Pension Plans

 

(in thousands)

 

2019

 

 

2018

 

 

2019

 

 

2018

 

 

2019

 

 

2018

 

Service cost

 

$

46

 

 

$

48

 

 

$

48

 

 

$

60

 

 

$

303

 

 

$

418

 

Interest cost

 

 

646

 

 

 

585

 

 

 

343

 

 

 

337

 

 

 

281

 

 

 

273

 

Expected return on plan assets

 

 

(74

)

 

 

(145

)

 

 

 

 

 

 

 

 

(364

)

 

 

(382

)

Amortization of prior service credit

 

 

 

 

 

 

 

 

(141

)

 

 

(154

)

 

 

 

 

 

 

Recognized net actuarial loss

 

 

302

 

 

 

370

 

 

 

84

 

 

 

304

 

 

 

111

 

 

 

120

 

Net periodic benefit cost

 

$

920

 

 

$

858

 

 

$

334

 

 

$

547

 

 

$

331

 

 

$

429

 

v3.19.3
Restructuring Charges (Tables)
9 Months Ended
Sep. 30, 2019
Restructuring And Related Activities [Abstract]  
Changes to Restructuring Liability by Major Restructuring Activity

Changes to the restructuring liability by major restructuring activity are as follows:

 

 

 

GES

 

 

Other Restructurings

 

 

 

 

 

(in thousands)

 

Severance &

Employee

Benefits

 

 

Facilities

 

 

Severance &

Employee

Benefits

 

 

Total

 

Balance at December 31, 2018

 

$

2,039

 

 

$

200

 

 

$

12

 

 

$

2,251

 

Restructuring charges

 

 

5,243

 

 

 

1,397

 

 

 

205

 

 

 

6,845

 

Cash payments

 

 

(4,428

)

 

 

(513

)

 

 

(220

)

 

 

(5,161

)

Adjustment to liability

 

 

(45

)

 

 

56

 

 

 

7

 

 

 

18

 

Balance at September 30, 2019

 

$

2,809

 

 

$

1,140

 

 

$

4

 

 

$

3,953

 

v3.19.3
Leases and Other (Tables)
9 Months Ended
Sep. 30, 2019
Leases [Abstract]  
Summary of Balance Sheet Presentation of Operating and Finance Leases

The balance sheet presentation of our operating and finance leases is as follows:

 

 

 

 

 

September 30,

 

(in thousands)

 

Classification on the Condensed Consolidated Balance Sheet

 

2019

 

Assets:

 

 

 

 

 

 

Operating lease assets

 

Operating lease right-of-use assets

 

$

103,403

 

Finance lease assets

 

Property and equipment, net

 

 

25,257

 

Total lease assets

 

 

 

$

128,660

 

 

 

 

 

 

 

 

Liabilities:

 

 

 

 

 

 

Current:

 

 

 

 

 

 

Operating lease obligations

 

Operating lease obligations

 

$

22,526

 

Finance lease obligations

 

Current portion of debt and finance lease obligations

 

 

2,784

 

Noncurrent:

 

 

 

 

 

 

Operating lease obligations

 

Long-term operating lease obligations

 

 

82,630

 

Finance lease obligations

 

Long-term debt and finance lease obligations

 

 

22,546

 

Total lease liabilities

 

 

 

$

130,486

 

 

Components of Lease Expense

The components of lease expense consisted of the following:

 

 

 

Three Months Ended

 

 

Nine Months Ended

 

(in thousands)

 

September 30, 2019

 

 

September 30, 2019

 

Finance lease cost:

 

 

 

 

 

 

 

 

Amortization of right-of-use assets

 

$

697

 

 

$

1,895

 

Interest on lease liabilities

 

 

130

 

 

 

379

 

Operating lease cost

 

 

6,625

 

 

 

19,456

 

Short-term lease cost

 

 

571

 

 

 

1,348

 

Variable lease cost

 

 

1,478

 

 

 

4,695

 

Sublease income(1)

 

 

226

 

 

 

 

Total lease cost, net

 

$

9,727

 

 

$

27,773

 

 

(1)  Sublease income excludes rental income from owned assets, which is recorded in revenue.

Schedule of Other Information Related to Operating and Finance Leases

Other information related to operating and finance leases are as follows:

 

 

 

Three Months Ended

 

 

Nine Months Ended

 

(in thousands)

 

September 30, 2019

 

 

September 30, 2019

 

Cash paid for amounts included in the measurement of lease liabilities:

 

 

 

 

 

 

 

 

Operating cash flows from operating leases

 

$

7,250

 

 

$

20,853

 

Operating cash flows from finance leases

 

$

210

 

 

$

459

 

Financing cash flows from finance leases

 

$

525

 

 

$

1,537

 

Right-of-use assets obtained in exchange for lease obligations:

 

 

 

 

 

 

 

 

Operating leases

 

$

49,123

 

 

$

62,375

 

Finance leases

 

$

14,893

 

 

$

35,844

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

September 30,

 

 

 

 

 

 

 

2019

 

Weighted-average remaining lease term (years):

 

 

 

 

 

 

 

 

Operating leases

 

 

 

 

 

 

8.23

 

Finance leases

 

 

 

 

 

 

15.41

 

Weighted-average discount rate:

 

 

 

 

 

 

 

 

Operating leases

 

 

 

 

 

 

5.78

%

Finance leases

 

 

 

 

 

 

6.16

%

Schedule of Estimated Future Minimum Lease Payments Under Non-cancelable Leases Excluding Variable Leases and Variable Non-lease Components

As of September 30, 2019, the estimated future minimum lease payments under non-cancellable leases, excluding variable leases and variable non-lease components, are as follows:

 

(in thousands)

 

Operating Leases

 

 

Finance Leases

 

 

Total

 

Remainder of 2019

 

$

7,040

 

 

$

1,323

 

 

$

8,363

 

2020

 

 

23,839

 

 

 

4,136

 

 

 

27,975

 

2021

 

 

17,340

 

 

 

3,381

 

 

 

20,721

 

2022

 

 

15,102

 

 

 

2,920

 

 

 

18,022

 

2023

 

 

12,368

 

 

 

2,784

 

 

 

15,152

 

Thereafter

 

 

62,643

 

 

 

25,125

 

 

 

87,768

 

Total future lease payments

 

 

138,332

 

 

 

39,669

 

 

 

178,001

 

Less: Amount representing interest

 

 

(33,176

)

 

 

(14,339

)

 

 

(47,515

)

Present value of minimum lease payments

 

 

105,156

 

 

 

25,330

 

 

 

130,486

 

Current portion

 

 

22,526

 

 

 

2,784

 

 

 

25,310

 

Long-term portion

 

$

82,630

 

 

$

22,546

 

 

$

105,176

 

Schedule of Estimated Future Minimum Rentals Under Non-cancellable Leases

As of September 30, 2019, the estimated future minimum rentals under non-cancellable leases, which includes rental income from facilities that we own and sublease income from facilities that we lease, are as follows:

 

(in thousands)

 

 

 

 

Remainder of 2019

 

$

453

 

2020

 

 

2,020

 

2021

 

 

1,716

 

2022

 

 

1,384

 

2023

 

 

1,192

 

Thereafter

 

 

5,764

 

Total minimum sublease rents

 

$

12,529

 

Future minimum rental payments and related sublease rentals receivable

As previously disclosed in our 2018 Form 10-K and under the previous lease accounting standard, our future minimum rental payments and related sublease rentals receivable with respect to non-cancelable operating leases with terms in excess of one year would have been as follows as of December 31, 2018:

 

(in thousands)

 

Rental

Payments

 

 

Receivable

Under Subleases

 

2019

 

$

28,671

 

 

$

2,382

 

2020

 

 

22,919

 

 

 

1,582

 

2021

 

 

13,217

 

 

 

1,711

 

2022

 

 

8,280

 

 

 

1,370

 

2023

 

 

6,201

 

 

 

1,270

 

Thereafter

 

 

8,305

 

 

 

2,798

 

Total

 

$

87,593

 

 

$

11,113

 

v3.19.3
Redeemable Noncontrolling Interest (Tables)
9 Months Ended
Sep. 30, 2019
Noncontrolling Interest [Abstract]  
Summary of Changes in Redeemable Noncontrolling Interest

Changes in the redeemable noncontrolling interest are as follows:

 

(in thousands)

 

 

 

 

Balance at December 31, 2018

 

$

5,909

 

Net loss attributable to redeemable noncontrolling interest

 

 

(644

)

Adjustment to the redemption value

 

 

530

 

Foreign currency translation adjustment

 

 

(364

)

Balance at September 30, 2019

 

$

5,431

 

 

v3.19.3
Segment Information (Tables)
9 Months Ended
Sep. 30, 2019
Segment Reporting [Abstract]  
Reconciliation of income statement items from reportable segments

Our reportable segments, with reconciliations to consolidated totals, are as follows:

 

 

 

Three Months Ended

 

 

Nine Months Ended

 

 

 

September 30,

 

 

September 30,

 

(in thousands)

 

2019

 

 

2018

 

 

2019

 

 

2018

 

Revenue:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

GES:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

North America

 

$

191,983

 

 

$

200,855

 

 

$

698,906

 

 

$

683,810

 

EMEA

 

 

41,186

 

 

 

47,634

 

 

 

165,067

 

 

 

157,216

 

Intersegment eliminations

 

 

(5,724

)

 

 

(2,379

)

 

 

(14,731

)

 

 

(11,888

)

Total GES

 

 

227,445

 

 

 

246,110

 

 

 

849,242

 

 

 

829,138

 

Pursuit

 

 

135,043

 

 

 

112,053

 

 

 

201,119

 

 

 

170,130

 

Total revenue

 

$

362,488

 

 

$

358,163

 

 

$

1,050,361

 

 

$

999,268

 

Segment operating income (loss):

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

GES:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

North America

 

$

(8,562

)

 

$

1,367

 

 

$

22,635

 

 

$

25,055

 

EMEA

 

 

(3,024

)

 

 

(207

)

 

 

2,775

 

 

 

5,690

 

Total GES

 

 

(11,586

)

 

 

1,160

 

 

 

25,410

 

 

 

30,745

 

Pursuit

 

 

66,392

 

 

 

55,408

 

 

 

64,710

 

 

 

53,770

 

Segment operating income

 

 

54,806

 

 

 

56,568

 

 

 

90,120

 

 

 

84,515

 

Corporate eliminations (1)

 

 

16

 

 

 

18

 

 

 

49

 

 

 

51

 

Corporate activities

 

 

(2,680

)

 

 

(3,777

)

 

 

(7,795

)

 

 

(8,529

)

Operating income

 

 

52,142

 

 

 

52,809

 

 

 

82,374

 

 

 

76,037

 

Interest income

 

 

79

 

 

 

101

 

 

 

260

 

 

 

238

 

Interest expense

 

 

(3,740

)

 

 

(2,608

)

 

 

(9,612

)

 

 

(7,031

)

Multi-employer pension plan withdrawal

 

 

 

 

 

 

 

 

(15,508

)

 

 

 

Other expense

 

 

(281

)

 

 

(527

)

 

 

(1,192

)

 

 

(1,308

)

Restructuring recoveries (charges):

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

GES North America

 

 

(881

)

 

 

(162

)

 

 

(5,139

)

 

 

(402

)

GES EMEA

 

 

(759

)

 

 

(13

)

 

 

(1,501

)

 

 

(467

)

Pursuit

 

 

 

 

 

 

 

 

 

 

 

(140

)

Corporate

 

 

(62

)

 

 

 

 

 

(205

)

 

 

10

 

Impairment recoveries:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Pursuit

 

 

 

 

 

 

 

 

 

 

 

35

 

Legal settlement:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

GES

 

 

 

 

 

 

 

 

(8,500

)

 

 

 

Income from continuing operations before income taxes

 

$

46,498

 

 

$

49,600

 

 

$

40,977

 

 

$

66,972

 

(1)

Corporate eliminations represent the elimination of depreciation expense recorded by Pursuit associated with previously eliminated intercompany profit realized by GES for renovations to Pursuit’s Banff Gondola.

v3.19.3
Overview and Basis of Presentation - Narrative (Details)
9 Months Ended
Jan. 01, 2019
USD ($)
Sep. 30, 2019
USD ($)
Segment
Lodge
Recreational
Excursion
Overview And Summary Of Significant Accounting Policies [Line Items]    
Number of reportable segments | Segment   3
Operating lease right-of-use assets | $   $ 103,403,000
Operating lease, liability | $   $ 105,156,000
Percentage of non equity ownership related redeemable noncontrolling interests   54.50%
Renewal lease starting period   2019
Maximum    
Overview And Summary Of Significant Accounting Policies [Line Items]    
Lease expiration period   25 years
Maximum | Land    
Overview And Summary Of Significant Accounting Policies [Line Items]    
Lease expiration period   42 years
Glacier Park Inc    
Overview And Summary Of Significant Accounting Policies [Line Items]    
Percentage of non-equity ownership related to non-redeemable noncontrolling interests   20.00%
Mountain Park Lodges    
Overview And Summary Of Significant Accounting Policies [Line Items]    
Percentage of non-equity ownership related to non-redeemable noncontrolling interests   40.00%
Accounting Standards Update 2016-02    
Overview And Summary Of Significant Accounting Policies [Line Items]    
Cumulative effect adjustment to retained earnings | $ $ 0  
Operating lease right-of-use assets | $ 59,000,000  
Operating lease, liability | $ $ 59,000,000  
GES    
Overview And Summary Of Significant Accounting Policies [Line Items]    
Number of live event markets | Segment   4
Pursuit    
Overview And Summary Of Significant Accounting Policies [Line Items]    
Number of business lines | Segment   4
Pursuit | Banff Jasper Collection    
Overview And Summary Of Significant Accounting Policies [Line Items]    
Number of recreational attractions | Recreational   5
Pursuit | Banff Jasper Collection | Banff National Park    
Overview And Summary Of Significant Accounting Policies [Line Items]    
Number of lodges   2
Pursuit | Banff Jasper Collection | Jasper National Park    
Overview And Summary Of Significant Accounting Policies [Line Items]    
Number of lodges   8
Pursuit | Alaska Collection | Denali National Park and Preserve    
Overview And Summary Of Significant Accounting Policies [Line Items]    
Number of lodges   2
Number of sightseeing excursion | Excursion   1
Pursuit | Alaska Collection | Talkeetna    
Overview And Summary Of Significant Accounting Policies [Line Items]    
Number of lodges   1
Pursuit | Alaska Collection | Kenai Fjords National Park    
Overview And Summary Of Significant Accounting Policies [Line Items]    
Number of lodges   2
Pursuit | Glacier Park Collection    
Overview And Summary Of Significant Accounting Policies [Line Items]    
Number of lodges   9
v3.19.3
Revenue and Related Contract Costs and Contract Liabilities - Narrative (Details) - USD ($)
3 Months Ended 9 Months Ended
Sep. 30, 2019
Sep. 30, 2018
Sep. 30, 2019
Sep. 30, 2018
Disaggregation Of Revenue [Line Items]        
Revenue recognition description of capitalized contract costs     Capitalized contract costs are expensed upon the transfer of the related goods or services and are included in cost of services or cost of products, as applicable  
Capitalized contract costs to obtain contracts $ 2,400,000   $ 2,400,000  
Capitalized contract costs to fulfill contracts 32,400,000   $ 32,400,000  
Impairment loss on capitalized contract costs $ 0 $ 0   $ 0
GES        
Disaggregation Of Revenue [Line Items]        
Performance obligation description of payment terms     Payment terms are generally within 30-60 days and contain no significant financing components  
GES | Minimum        
Disaggregation Of Revenue [Line Items]        
Performance obligation payment terms     30 days  
GES | Maximum        
Disaggregation Of Revenue [Line Items]        
Performance obligation payment terms     60 days  
Pursuit        
Disaggregation Of Revenue [Line Items]        
Performance obligation description of payment terms     When credit is extended, payment terms are generally within 30 days and contain no significant financing components  
Performance obligation payment terms     30 days  
v3.19.3
Revenue and Related Contract Costs and Contract Liabilities - Summary of Changes in Contract Liabilities (Details)
$ in Thousands
9 Months Ended
Sep. 30, 2019
USD ($)
Revenue From Contract With Customer [Abstract]  
Balance at December 31, 2018 $ 35,600
Cash additions 150,566
Revenue recognized (123,330)
Foreign exchange translation adjustment (451)
Balance at September 30, 2019 $ 62,385
v3.19.3
Revenue and Related Contract Costs and Contract Liabilities - Summary of Changes in Contract Costs (Details)
$ in Thousands
9 Months Ended
Sep. 30, 2019
USD ($)
Revenue From Contract With Customer [Abstract]  
Balance at December 31, 2018 $ 21,478
Additions 58,330
Expenses (44,666)
Cancelled (45)
Foreign exchange translation adjustment (263)
Balance at September 30, 2019 $ 34,834
v3.19.3
Revenue and Related Contract Costs and Contract Liabilities - Disaggregate GES and Pursuit Revenue by Major Product Line Timing of Revenue Recognition and Markets Served (Details) - USD ($)
$ in Thousands
3 Months Ended 9 Months Ended
Sep. 30, 2019
Sep. 30, 2018
Sep. 30, 2019
Sep. 30, 2018
Disaggregation Of Revenue [Line Items]        
Total revenue $ 362,488 $ 358,163 $ 1,050,361 $ 999,268
GES        
Disaggregation Of Revenue [Line Items]        
Total revenue 227,445 246,110 849,242 829,138
GES | Operating Segments        
Disaggregation Of Revenue [Line Items]        
Total revenue 227,445 246,110 849,242 829,138
GES | Intersegment Eliminations        
Disaggregation Of Revenue [Line Items]        
Total revenue (5,724) (2,379) (14,731) (11,888)
Pursuit        
Disaggregation Of Revenue [Line Items]        
Total revenue 135,043 112,053 201,119 170,130
Pursuit | Operating Segments        
Disaggregation Of Revenue [Line Items]        
Total revenue 135,043 112,053 201,119 170,130
Pursuit | Intersegment Eliminations        
Disaggregation Of Revenue [Line Items]        
Total revenue (671) (554) (1,355) (1,260)
EMEA | GES | Operating Segments        
Disaggregation Of Revenue [Line Items]        
Total revenue [1] 191,983 200,855 698,906 683,810
EMEA | GES | Operating Segments        
Disaggregation Of Revenue [Line Items]        
Total revenue [1] 41,186 47,634 165,067 157,216
Services Transferred Over Time | GES        
Disaggregation Of Revenue [Line Items]        
Total revenue 201,600 216,450 750,507 732,144
Services Transferred Over Time | GES | Intersegment Eliminations        
Disaggregation Of Revenue [Line Items]        
Total revenue (5,724) (2,379) (14,731) (11,888)
Services Transferred Over Time | Pursuit        
Disaggregation Of Revenue [Line Items]        
Total revenue 98,846 83,638 148,239 128,215
Services Transferred Over Time | EMEA | GES | Operating Segments        
Disaggregation Of Revenue [Line Items]        
Total revenue [1] 179,083 185,150 648,257 633,752
Services Transferred Over Time | EMEA | GES | Operating Segments        
Disaggregation Of Revenue [Line Items]        
Total revenue [1] 28,241 33,679 116,981 110,280
Products Transferred Over Time | GES        
Disaggregation Of Revenue [Line Items]        
Total revenue [2] 12,863 13,507 44,196 44,000
Products Transferred Over Time | EMEA | GES | Operating Segments        
Disaggregation Of Revenue [Line Items]        
Total revenue [1],[2] 10,558 10,645 33,601 32,982
Products Transferred Over Time | EMEA | GES | Operating Segments        
Disaggregation Of Revenue [Line Items]        
Total revenue [1],[2] 2,305 2,862 10,595 11,018
Products Transferred at a Point in Time | GES        
Disaggregation Of Revenue [Line Items]        
Total revenue 12,982 16,153 54,539 52,994
Products Transferred at a Point in Time | Pursuit        
Disaggregation Of Revenue [Line Items]        
Total revenue 36,197 28,415 52,880 41,915
Products Transferred at a Point in Time | EMEA | GES | Operating Segments        
Disaggregation Of Revenue [Line Items]        
Total revenue [1] 2,342 5,060 17,048 17,076
Products Transferred at a Point in Time | EMEA | GES | Operating Segments        
Disaggregation Of Revenue [Line Items]        
Total revenue [1] 10,640 11,093 37,491 35,918
Core Services | GES        
Disaggregation Of Revenue [Line Items]        
Total revenue 178,006 190,478 658,875 643,445
Core Services | EMEA | GES | Operating Segments        
Disaggregation Of Revenue [Line Items]        
Total revenue [1] 155,581 162,967 563,566 555,175
Core Services | EMEA | GES | Operating Segments        
Disaggregation Of Revenue [Line Items]        
Total revenue [1] 22,425 27,511 95,309 88,270
Audio Visual | GES        
Disaggregation Of Revenue [Line Items]        
Total revenue 23,144 21,732 76,494 69,278
Audio Visual | EMEA | GES | Operating Segments        
Disaggregation Of Revenue [Line Items]        
Total revenue [1] 18,742 17,309 61,323 55,134
Audio Visual | EMEA | GES | Operating Segments        
Disaggregation Of Revenue [Line Items]        
Total revenue [1] 4,402 4,423 15,171 14,144
Event Technology | GES        
Disaggregation Of Revenue [Line Items]        
Total revenue 6,174 6,619 29,869 31,309
Event Technology | EMEA | GES | Operating Segments        
Disaggregation Of Revenue [Line Items]        
Total revenue [1] 4,760 4,874 23,368 23,443
Event Technology | EMEA | GES | Operating Segments        
Disaggregation Of Revenue [Line Items]        
Total revenue [1] 1,414 1,745 6,501 7,866
Total Services | GES        
Disaggregation Of Revenue [Line Items]        
Total revenue 201,600 216,450 750,507 732,144
Total Services | GES | Intersegment Eliminations        
Disaggregation Of Revenue [Line Items]        
Total revenue (5,724) (2,379) (14,731) (11,888)
Total Services | Pursuit        
Disaggregation Of Revenue [Line Items]        
Total revenue 98,846 83,638 148,239 128,215
Total Services | EMEA | GES | Operating Segments        
Disaggregation Of Revenue [Line Items]        
Total revenue [1] 179,083 185,150 648,257 633,752
Total Services | EMEA | GES | Operating Segments        
Disaggregation Of Revenue [Line Items]        
Total revenue [1] 28,241 33,679 116,981 110,280
Core Products | GES        
Disaggregation Of Revenue [Line Items]        
Total revenue 25,845 29,660 98,735 96,994
Core Products | EMEA | GES | Operating Segments        
Disaggregation Of Revenue [Line Items]        
Total revenue [1] 12,900 15,705 50,649 50,058
Core Products | EMEA | GES | Operating Segments        
Disaggregation Of Revenue [Line Items]        
Total revenue [1] 12,945 13,955 48,086 46,936
Exhibitions | GES        
Disaggregation Of Revenue [Line Items]        
Total revenue 118,607 150,174 488,871 514,355
Exhibitions | EMEA | GES | Operating Segments        
Disaggregation Of Revenue [Line Items]        
Total revenue [1] 89,088 114,387 364,404 397,945
Exhibitions | EMEA | GES | Operating Segments        
Disaggregation Of Revenue [Line Items]        
Total revenue [1] 29,519 35,787 124,467 116,410
Conferences | GES        
Disaggregation Of Revenue [Line Items]        
Total revenue 62,525 46,285 229,694 192,587
Conferences | EMEA | GES | Operating Segments        
Disaggregation Of Revenue [Line Items]        
Total revenue [1] 56,205 42,053 209,522 170,910
Conferences | EMEA | GES | Operating Segments        
Disaggregation Of Revenue [Line Items]        
Total revenue [1] 6,320 4,232 20,172 21,677
Corporate Events | GES        
Disaggregation Of Revenue [Line Items]        
Total revenue 46,352 42,283 123,324 110,967
Corporate Events | EMEA | GES | Operating Segments        
Disaggregation Of Revenue [Line Items]        
Total revenue [1] 41,205 35,555 103,860 93,797
Corporate Events | EMEA | GES | Operating Segments        
Disaggregation Of Revenue [Line Items]        
Total revenue [1] 5,147 6,728 19,464 17,170
Consumer Events | GES        
Disaggregation Of Revenue [Line Items]        
Total revenue 5,685 9,747 22,084 23,117
Consumer Events | EMEA | GES | Operating Segments        
Disaggregation Of Revenue [Line Items]        
Total revenue [1] 5,485 8,860 21,120 21,158
Consumer Events | EMEA | GES | Operating Segments        
Disaggregation Of Revenue [Line Items]        
Total revenue [1] 200 887 964 1,959
Accommodations | Pursuit        
Disaggregation Of Revenue [Line Items]        
Total revenue 41,292 24,623 56,636 35,358
Admissions | Pursuit        
Disaggregation Of Revenue [Line Items]        
Total revenue 49,353 51,316 76,034 78,375
Transportation | Pursuit        
Disaggregation Of Revenue [Line Items]        
Total revenue 6,868 7,602 12,817 14,292
Travel Planning | Pursuit        
Disaggregation Of Revenue [Line Items]        
Total revenue 2,004 651 4,107 1,450
Food and Beverage | Pursuit        
Disaggregation Of Revenue [Line Items]        
Total revenue 19,333 16,074 28,903 23,998
Retail Operations | Pursuit        
Disaggregation Of Revenue [Line Items]        
Total revenue 16,864 12,341 23,977 17,917
Products        
Disaggregation Of Revenue [Line Items]        
Total revenue 62,042 58,076 151,615 138,910
Products | Pursuit        
Disaggregation Of Revenue [Line Items]        
Total revenue 36,197 28,415 52,880 41,915
Banff Jasper Collection | Pursuit        
Disaggregation Of Revenue [Line Items]        
Total revenue 75,337 58,525 116,433 94,133
Alaska Collection | Pursuit        
Disaggregation Of Revenue [Line Items]        
Total revenue 26,909 25,546 39,287 36,373
Glacier Park Collection | Pursuit        
Disaggregation Of Revenue [Line Items]        
Total revenue 28,098 23,418 36,296 30,684
FlyOver | Pursuit        
Disaggregation Of Revenue [Line Items]        
Total revenue $ 4,699 $ 4,564 $ 9,103 $ 8,940
[1] During the first quarter of 2019, we realigned GES’ organizational structure. As a result, we changed GES’ reportable segments to reflect how our chief operating decision maker regularly reviews and makes decisions regarding the allocation of resources. Accordingly, GES’ new reportable segments are GES North America and GES EMEA.
[2] GES’ graphics product revenue is recognized over time as it is considered a part of the single performance obligation satisfied over time.
v3.19.3
Share-Based Compensation - Summary of Share-Based Compensation Expense (Details) - USD ($)
$ in Thousands
3 Months Ended 9 Months Ended
Sep. 30, 2019
Sep. 30, 2018
Sep. 30, 2019
Sep. 30, 2018
Summary of share-based compensation expense        
Share-based compensation before income tax benefit $ 1,831 $ 2,294 $ 6,448 $ 5,056
Income tax benefit (460) (580) (1,625) (1,276)
Share-based compensation, net of income tax benefit 1,371 1,714 4,823 3,780
Performance Unit Incentive Plan (“PUP”)        
Summary of share-based compensation expense        
Share-based compensation before income tax benefit 1,033 1,607 4,013 3,125
Restricted stock        
Summary of share-based compensation expense        
Share-based compensation before income tax benefit 687 609 2,163 1,779
Restricted stock units        
Summary of share-based compensation expense        
Share-based compensation before income tax benefit $ 111 $ 78 $ 272 $ 152
v3.19.3
Share-Based Compensation - Narrative (Details) - USD ($)
3 Months Ended 9 Months Ended 12 Months Ended
Sep. 30, 2019
Sep. 30, 2018
Sep. 30, 2019
Sep. 30, 2018
Dec. 31, 2018
Employee Service Share-based Compensation, Allocation of Recognized Period Costs [Line Items]          
Repurchase of common stock for employee tax withholding obligations amount     $ 3,019,000 $ 1,179,000  
2017 Plan          
Employee Service Share-based Compensation, Allocation of Recognized Period Costs [Line Items]          
Useful Life of the plan     10 years    
Common stock shares issuable 1,750,000   1,750,000    
Shares available for grant 1,582,828   1,582,828    
2007 Plan          
Employee Service Share-based Compensation, Allocation of Recognized Period Costs [Line Items]          
Award vesting period     3 years    
2007 Plan | Performance Unit Incentive Plan (“PUP”)          
Employee Service Share-based Compensation, Allocation of Recognized Period Costs [Line Items]          
Awards with grant date fair value during the period     $ 4,300,000    
Stock value payable     1,700,000    
Liability awards recorded $ 5,100,000   5,100,000   $ 7,000,000.0
Payments to employees     $ 5,600,000   5,900,000
Repurchase of common stock for employee tax withholding obligations amount, shares     25,771    
Repurchase of common stock for employee tax withholding obligations amount     $ 1,500,000    
Paid to employees as shares     $ 3,400,000    
2007 Plan | Restricted Stock          
Employee Service Share-based Compensation, Allocation of Recognized Period Costs [Line Items]          
Repurchase of common stock for employee tax withholding obligations amount, shares     24,586 21,767  
Repurchase of common stock for employee tax withholding obligations amount     $ 1,400,000 $ 1,200,000  
Unamortized cost 3,300,000   $ 3,300,000    
Recognition period of unrecognized cost     1 year 3 months 18 days    
2007 Plan | Restricted Stock Units          
Employee Service Share-based Compensation, Allocation of Recognized Period Costs [Line Items]          
Payments to employees     $ 300,000 200,000  
Liabilities related to restricted stock 400,000   400,000   $ 400,000
Payments to employees in shares     200,000    
Restructuring Charges          
Employee Service Share-based Compensation, Allocation of Recognized Period Costs [Line Items]          
Share-based compensation before income tax benefit $ 0 $ 0 $ 0 $ 0  
v3.19.3
Share-Based Compensation - Summary of Activity of the Outstanding Share-Based Compensation Awards (Details)
9 Months Ended
Sep. 30, 2019
$ / shares
shares
Performance Unit Incentive Plan (“PUP”)  
Summary of activity of the outstanding share-based compensation awards  
Beginning Balance, Shares | shares 239,809
Granted, Shares | shares 73,418
Vested, Shares | shares (95,309)
Forfeited, Shares | shares (2,192)
Ending Balance, Shares | shares 215,726
Share-based Compensation Arrangement by Share-based Payment Award, Equity Instruments Other than Options, Nonvested, Weighted Average Grant Date Fair Value [Abstract]  
Beginning Balance, Weighted-Average Grant Date Fair Value | $ / shares $ 40.65
Granted, Weighted-Average Grant Date Fair Value | $ / shares 58.28
Vested, Weighted-Average Grant Date Fair Value | $ / shares 26.98
Forfeited, Weighted-Average Grant Date Fair Value | $ / shares 55.92
Ending Balance, Weighted-Average Grant Date Fair Value | $ / shares $ 52.54
Restricted Stock  
Summary of activity of the outstanding share-based compensation awards  
Beginning Balance, Shares | shares 176,769
Granted, Shares | shares 55,440
Vested, Shares | shares (82,647)
Forfeited, Shares | shares (5,323)
Ending Balance, Shares | shares 144,239
Share-based Compensation Arrangement by Share-based Payment Award, Equity Instruments Other than Options, Nonvested, Weighted Average Grant Date Fair Value [Abstract]  
Beginning Balance, Weighted-Average Grant Date Fair Value | $ / shares $ 40.87
Granted, Weighted-Average Grant Date Fair Value | $ / shares 57.86
Vested, Weighted-Average Grant Date Fair Value | $ / shares 32.15
Forfeited, Weighted-Average Grant Date Fair Value | $ / shares 50.03
Ending Balance, Weighted-Average Grant Date Fair Value | $ / shares $ 52.05
Restricted Stock Units  
Summary of activity of the outstanding share-based compensation awards  
Beginning Balance, Shares | shares 12,090
Granted, Shares | shares 5,025
Vested, Shares | shares (5,377)
Forfeited, Shares | shares (115)
Ending Balance, Shares | shares 11,623
Share-based Compensation Arrangement by Share-based Payment Award, Equity Instruments Other than Options, Nonvested, Weighted Average Grant Date Fair Value [Abstract]  
Beginning Balance, Weighted-Average Grant Date Fair Value | $ / shares $ 39.04
Granted, Weighted-Average Grant Date Fair Value | $ / shares 56.81
Vested, Weighted-Average Grant Date Fair Value | $ / shares 26.98
Forfeited, Weighted-Average Grant Date Fair Value | $ / shares 52.15
Ending Balance, Weighted-Average Grant Date Fair Value | $ / shares $ 52.17
v3.19.3
Share-Based Compensation - Summary of Stock Option Activity (Details)
9 Months Ended
Sep. 30, 2019
$ / shares
shares
Options outstanding and exercisable  
Options outstanding and exercisable Beginning Balance, Shares | shares 58,689
Exercised, Shares | shares (5,546)
Option outstanding and exercisable Ending Balance, Shares | shares 53,143
Weighted-Average Exercise Price  
Options outstanding and exercisable Beginning Balance, Weighted-Average Exercise Price | $ / shares $ 16.62
Exercised, Weighted-Average Exercise Price | $ / shares 16.62
Options outstanding and exercisable Ending Balance, Weighted-Average Exercise Price | $ / shares $ 16.62
v3.19.3
Acquisition of Businesses - Narrative (Details)
$ in Thousands, $ in Millions
1 Months Ended 3 Months Ended 9 Months Ended 12 Months Ended
Jul. 25, 2019
USD ($)
Jun. 08, 2019
USD ($)
Hotel
Guest_Room
Jun. 08, 2019
CAD ($)
Hotel
Guest_Room
May 16, 2019
USD ($)
Mar. 31, 2018
USD ($)
Mar. 31, 2018
CAD ($)
Sep. 30, 2019
USD ($)
Sep. 30, 2018
USD ($)
Sep. 30, 2019
USD ($)
Sep. 30, 2018
USD ($)
Dec. 31, 2018
USD ($)
Business Acquisition [Line Items]                      
Operating Income             $ 52,142 $ 52,809 $ 82,374 $ 76,037  
Total revenue             362,488 358,163 1,050,361 999,268  
Pursuit                      
Business Acquisition [Line Items]                      
Total revenue             $ 135,043 $ 112,053 201,119 170,130  
Belton Chalet                      
Business Acquisition [Line Items]                      
Purchase price       $ 3,200              
Acquisition related costs       $ 300              
Business acquisition date       May 16, 2019              
Mountain Park Lodges                      
Business Acquisition [Line Items]                      
Purchase price   $ 70,975                  
Acquisition related costs                 800 $ 100  
Business acquisition date   Jun. 08, 2019 Jun. 08, 2019                
Percentage of controlling interest acquired   60.00% 60.00%                
Number of hotels acquired | Hotel   7 7                
Total consideration   $ 76,000 $ 100.6                
Percentage of operations results consolidated to financial statements   100.00% 100.00%                
Percentage of non-redeemable noncontrolling portion of income (loss) recorded in financial statements   40.00% 40.00%                
Operating Income                 7,100    
Total revenue                 $ 15,100    
Identifiable intangible assets acquired   $ 22,000                  
Weighted average amortization period   27 years 7 months 6 days 27 years 7 months 6 days                
Mountain Park Lodges | Sawridge Inn and Conference Centre                      
Business Acquisition [Line Items]                      
Number of guest rooms | Guest_Room   152 152                
Mountain Park Lodges | Pyramid Lake Resort                      
Business Acquisition [Line Items]                      
Number of guest rooms | Guest_Room   62 62                
Mountain Park Lodges | Crimson Hotel                      
Business Acquisition [Line Items]                      
Number of guest rooms | Guest_Room   99 99                
Mountain Park Lodges | Chateau Jasper                      
Business Acquisition [Line Items]                      
Number of guest rooms | Guest_Room   119 119                
Mountain Park Lodges | Pocahontas Cabins                      
Business Acquisition [Line Items]                      
Number of guest rooms | Guest_Room   57 57                
Mountain Park Lodges | Marmot Lodge                      
Business Acquisition [Line Items]                      
Number of guest rooms | Guest_Room   107 107                
Mountain Park Lodges | Lobstick Lodge                      
Business Acquisition [Line Items]                      
Number of guest rooms | Guest_Room   139 139                
Geothermal Lagoon Attraction | Pursuit | Geothermal Lagoon ehf                      
Business Acquisition [Line Items]                      
Percentage of controlling interest acquired 51.00%                    
Payments to acquire controlling interest $ 13,200                    
Maligne Canyon Restaurant                      
Business Acquisition [Line Items]                      
Purchase price         $ 4,600 $ 6.0          
Acquisition related costs                     $ 24
Business acquisition date         Mar. 31, 2018 Mar. 31, 2018          
v3.19.3
Acquisition of Businesses - Schedule of Recognized Assets Acquired and Liabilities Assumed (Details) - USD ($)
$ in Thousands
Jun. 08, 2019
Sep. 30, 2019
Dec. 31, 2018
Business Acquisition [Line Items]      
Excess purchase price over fair value of net assets acquired (“goodwill”)   $ 275,568 $ 261,330
Mountain Park Lodges      
Business Acquisition [Line Items]      
Purchase price $ 70,975    
Cash - Additional purchase price paid for tax liability 4,862    
Net working capital adjustment 18    
Consideration transferred 75,855    
Right to manage (1,276)    
Purchase price, net 74,579    
Accounts receivable 333    
Inventories 152    
Prepaid expenses 276    
Property and equipment 101,840    
Intangible assets 21,982    
Total assets acquired 124,583    
Accounts payable 329    
Advanced deposits payable 400    
Deferred tax liability 11,463    
Other liabilities 16    
Total liabilities assumed 12,208    
Noncontrolling interest equity 49,719    
Total fair value of net assets acquired 62,656    
Excess purchase price over fair value of net assets acquired (“goodwill”) $ 11,923    
v3.19.3
Acquisition of Businesses - Schedule of Proforma Results of Operations (Details) - Mountain Park Lodges - USD ($)
$ / shares in Units, $ in Thousands
3 Months Ended 9 Months Ended
Sep. 30, 2019
Sep. 30, 2018
Sep. 30, 2019
Sep. 30, 2018
Business Acquisition [Line Items]        
Revenue $ 362,488 $ 370,025 $ 1,058,622 $ 1,022,463
Depreciation and amortization 16,347 17,529 46,695 48,455
Income (loss) from continuing operations 34,607 42,500 28,709 53,651
Net income (loss) attributable to Viad $ 31,416 $ 39,549 $ 26,765 $ 52,334
Diluted income (loss) per share $ 1.53 $ 1.94 $ 1.29 $ 2.55
Basic income (loss) per share $ 1.53 $ 1.94 $ 1.29 $ 2.56
v3.19.3
Inventories - Components of Inventories (Details) - USD ($)
$ in Thousands
Sep. 30, 2019
Dec. 31, 2018
Components of Inventories    
Raw materials $ 10,656 $ 12,368
Finished goods 5,667 4,261
Inventories $ 16,323 $ 16,629
v3.19.3
Other Current Assets - Schedule of Other Current Assets (Details) - USD ($)
$ in Thousands
Sep. 30, 2019
Dec. 31, 2018
Deferred Costs Capitalized Prepaid And Other Assets Disclosure [Abstract]    
Income tax receivable $ 9,672 $ 10,886
Prepaid software maintenance 5,070 4,010
Prepaid vendor payments 3,992 4,492
Prepaid insurance 2,521 2,754
Prepaid taxes 1,625 591
Prepaid other 2,737 1,755
Other 966 998
Other current assets $ 26,583 $ 25,486
v3.19.3
Property and Equipment - Schedule of Property and Equipment (Details) - USD ($)
$ in Thousands
Sep. 30, 2019
Dec. 31, 2018
Property Plant And Equipment [Line Items]    
Gross property and equipment $ 812,441 $ 655,166
Accumulated depreciation (351,165) (321,319)
Property and equipment, net (excluding finance leases) 461,276 333,847
Finance lease right-of-use assets, net 25,257  
Property and equipment, net 486,533 333,847
Land and land interests    
Property Plant And Equipment [Line Items]    
Gross property and equipment 33,984 32,887
Buildings and leasehold improvements    
Property Plant And Equipment [Line Items]    
Gross property and equipment 366,633 238,995
Equipment and other    
Property Plant And Equipment [Line Items]    
Gross property and equipment $ 411,824 $ 383,284
v3.19.3
Property and Equipment - Narrative (Details) - USD ($)
$ in Thousands
3 Months Ended 9 Months Ended
Sep. 30, 2019
Sep. 30, 2018
Sep. 30, 2019
Sep. 30, 2018
Property Plant And Equipment [Abstract]        
Depreciation expense $ 12,700 $ 13,300 $ 34,000 $ 35,900
Amortization expense on finance leases $ 697   1,895  
Property and equipment purchased through accounts payable and accrued liabilities, increased amount     $ 2,000 $ 4,400
v3.19.3
Other Investments and Assets - Summary of Other Investments and Assets (Details) - USD ($)
$ in Thousands
Sep. 30, 2019
Dec. 31, 2018
Investments All Other Investments [Abstract]    
Cash surrender value of life insurance $ 24,060 $ 23,815
Self-insured liability receivable 9,176 9,176
Contract costs 3,175 3,461
Other mutual funds 2,933 2,517
Other 3,159 3,941
Other investments and assets $ 42,503 $ 42,910
v3.19.3
Goodwill and Other Intangible Assets - Summary of Goodwill Balances by Component and Segment (Details)
$ in Thousands
9 Months Ended
Sep. 30, 2019
USD ($)
Goodwill [Line Items]  
Balance, beginning $ 261,330
Business acquisitions 12,413
Foreign currency translation adjustments 580
Other adjustment 1,245
Balance, ending 275,568
GES North America  
Goodwill [Line Items]  
Balance, beginning 154,944
Foreign currency translation adjustments 200
Balance, ending 155,144
GES EMEA  
Goodwill [Line Items]  
Balance, beginning 29,954
Foreign currency translation adjustments (1,126)
Balance, ending 28,828
Pursuit  
Goodwill [Line Items]  
Balance, beginning 76,432
Business acquisitions 12,413
Foreign currency translation adjustments 1,506
Other adjustment 1,245
Balance, ending $ 91,596
v3.19.3
Goodwill and Other Intangible Assets - Summary of Other Intangible Assets (Details) - USD ($)
$ in Thousands
9 Months Ended
Sep. 30, 2019
Dec. 31, 2018
Finite-Lived Intangible Assets, Net [Abstract]    
Intangible assets subject to amortization, Gross Carrying Value $ 127,768 $ 91,153
Intangible assets subject to amortization, Accumulated Amortization (48,199) (40,319)
Intangible assets subject to amortization, Net Carrying Value 79,569 50,834
Other intangible assets, Gross Carrying Value 128,228 91,613
Other intangible assets, Net Carrying Value $ 80,029 51,294
Customer contracts and relationships    
Finite-Lived Intangible Assets, Net [Abstract]    
Intangible assets subject to amortization, Useful Life (Years) 7 years 4 months 24 days  
Intangible assets subject to amortization, Gross Carrying Value $ 73,249 67,729
Intangible assets subject to amortization, Accumulated Amortization (36,645) (31,201)
Intangible assets subject to amortization, Net Carrying Value $ 36,604 36,528
Operating contracts and licenses    
Finite-Lived Intangible Assets, Net [Abstract]    
Intangible assets subject to amortization, Useful Life (Years) 26 years 7 months 6 days  
Intangible assets subject to amortization, Gross Carrying Value $ 23,933 9,180
Intangible assets subject to amortization, Accumulated Amortization (1,803) (1,376)
Intangible assets subject to amortization, Net Carrying Value $ 22,130 7,804
Tradenames    
Finite-Lived Intangible Assets, Net [Abstract]    
Intangible assets subject to amortization, Useful Life (Years) 6 years 9 months 18 days  
Intangible assets subject to amortization, Gross Carrying Value $ 9,289 7,705
Intangible assets subject to amortization, Accumulated Amortization (4,100) (3,109)
Intangible assets subject to amortization, Net Carrying Value $ 5,189 4,596
Non-compete agreements    
Finite-Lived Intangible Assets, Net [Abstract]    
Intangible assets subject to amortization, Useful Life (Years) 2 years 3 months 18 days  
Intangible assets subject to amortization, Gross Carrying Value $ 5,149 5,174
Intangible assets subject to amortization, Accumulated Amortization (4,816) (4,080)
Intangible assets subject to amortization, Net Carrying Value $ 333 1,094
Other    
Finite-Lived Intangible Assets, Net [Abstract]    
Intangible assets subject to amortization, Useful Life (Years) 8 years 1 month 6 days  
Intangible assets subject to amortization, Gross Carrying Value $ 16,148 1,365
Intangible assets subject to amortization, Accumulated Amortization (835) (553)
Intangible assets subject to amortization, Net Carrying Value 15,313 812
Business licenses    
Finite-Lived Intangible Assets, Net [Abstract]    
Indefinite-lived intangible assets, Gross Carrying Value $ 460 $ 460
v3.19.3
Goodwill and Other Intangible Assets - Narrative (Details) - USD ($)
$ in Millions
3 Months Ended 9 Months Ended
Sep. 30, 2019
Sep. 30, 2018
Sep. 30, 2019
Sep. 30, 2018
Services        
Segment Reporting Information [Line Items]        
Intangible asset amortization expense $ 2.9 $ 2.9 $ 8.2 $ 8.4
v3.19.3
Goodwill and Other Intangible Assets - Estimated Future Amortization Expense Related to Intangible Assets Subject to Amortization (Details) - USD ($)
$ in Thousands
Sep. 30, 2019
Dec. 31, 2018
Estimated amortization expense related to amortized intangible assets    
Remainder of 2019 $ 2,569  
2020 10,030  
2021 8,987  
2022 7,698  
2023 6,481  
Thereafter 43,804  
Intangible assets subject to amortization, Net Carrying Value $ 79,569 $ 50,834
v3.19.3
Other Current Liabilities - Schedule of Other Current Liabilities (Details) - USD ($)
$ in Thousands
Sep. 30, 2019
Dec. 31, 2018
Continuing operations:    
Commissions payable $ 8,660 $ 2,703
Self-insured liability 6,161 5,688
Accrued sales and use taxes 5,183 5,397
Accrued employee benefit costs 4,493 3,224
Accrued income tax payable 3,623  
Accrued legal settlement 2,500  
Current portion of pension and postretirement liabilities 2,134 2,310
Accrued dividends 2,010 2,012
Accrued restructuring 1,753 716
Accommodation services deposits 1,483 1,541
Accrued professional fees 1,261 886
Deferred rent [1]   1,659
Other taxes 1,139 695
Other 3,462 4,501
Total continuing operations 43,862 31,332
Discontinued operations:    
Environmental remediation liabilities 407 555
Self-insured liability 252 295
Other 76 76
Total discontinued operations 735 926
Total other current liabilities $ 44,597 $ 32,258
[1] Upon the adoption of Topic 842, we reclassified deferred rent to operating lease obligations. We did not recast prior year financial statements under the new standard. Refer to Note 19 – Leases and Other for additional information
v3.19.3
Other Deferred Items and Liabilities - Summary of Other Deferred Items and Liabilities (Details) - USD ($)
$ in Thousands
Sep. 30, 2019
Dec. 31, 2018
Continuing operations:    
Foreign deferred tax liability $ 17,933 $ 9,768
Multi-employer pension plan withdrawal liability 15,508  
Self-insured liability 9,429 10,681
Self-insured excess liability 9,176 9,176
Accrued compensation 7,104 6,664
Accrued restructuring 2,200 1,535
Contract liabilities 125 2,124
Deferred rent [1]   2,719
Other 3,093 1,868
Total continuing operations 64,568 44,535
Discontinued operations:    
Self-insured liability 2,273 2,437
Environmental remediation liabilities 1,871 1,775
Other 497 244
Total discontinued operations 4,641 4,456
Total other deferred items and liabilities $ 69,209 $ 48,991
[1] Upon the adoption of Topic 842, we reclassified deferred rent to operating lease obligations. We did not recast prior year financial statements under the new standard. Refer to Note 19 – Leases and Other for additional information.
v3.19.3
Debt and Finance Lease Obligations - Schedule of Long-term Debt and Finance Lease Obligations (Details) - USD ($)
$ in Thousands
Sep. 30, 2019
Dec. 31, 2018
Debt Instrument [Line Items]    
Less unamortized debt issuance costs $ (1,925) $ (2,310)
Total debt [1] 298,905 225,482
Finance lease obligations, 6.2% weighted-average interest rate at September 30, 2019 and 4.5% at December 31, 2018, due through 2021 25,330 4,639
Total debt and finance lease obligations [2] 324,235 230,121
Current portion [3] (298,940) (229,416)
Long-term debt and finance lease obligations 25,295 705
FlyOver Iceland Credit Facility    
Debt Instrument [Line Items]    
Credit facility [4] 5,452  
2018 Credit Agreement | Revolving Credit Facility    
Debt Instrument [Line Items]    
Credit facility [4] $ 295,378 $ 227,792
[1] The estimated fair value of total debt was $297.8 million as of September 30, 2019 and $228.6 million as of December 31, 2018. The fair value of debt was estimated by discounting the future cash flows using rates currently available for debt of similar terms and maturity, which is a Level 2 measurement. Refer to Note 13 – Fair Value Measurements
[2] Cash paid for interest on debt was $8.8 million for the nine months ended September 30, 2019 and $6.2 million for the nine months ended September 30, 2018.
[3] Borrowings under the 2018 Credit Facility are classified as current because all borrowed amounts are due within one year
[4] Represents the weighted-average interest rate in effect at the respective periods, including any applicable margin. The interest rates do not include amortization of debt issuance costs or commitment fees.
v3.19.3
Debt and Finance Lease Obligations - Schedule of Long-term Debt and Finance Lease Obligations (Parenthetical) (Details) - USD ($)
$ in Millions
9 Months Ended 12 Months Ended
Sep. 30, 2019
Sep. 30, 2018
Dec. 31, 2018
Debt Instrument [Line Items]      
Weighted average interest rate on long term debt 6.20%   4.50%
Fair value of debt $ 297.8   $ 228.6
Cash paid for interest on debt $ 8.8 $ 6.2  
Current revolving credit facility maturity period 1 year   1 year
FlyOver Iceland Credit Facility      
Debt Instrument [Line Items]      
Weighted average interest rate on long term debt 4.90%    
2018 Credit Agreement | Revolving Credit Facility      
Debt Instrument [Line Items]      
Interest rate on credit facility 4.10%   4.30%
v3.19.3
Debt and Finance Lease Obligations - Narrative (Details)
€ in Millions
9 Months Ended
Oct. 24, 2018
USD ($)
Sep. 30, 2019
USD ($)
Feb. 15, 2019
USD ($)
Feb. 15, 2019
EUR (€)
Dec. 31, 2018
USD ($)
FlyOver Iceland Credit Facility          
Line of Credit Facility [Line Items]          
Maturity date   Mar. 01, 2022      
Revolving credit facility, balance outstanding [1]   $ 5,452,000      
Maximum borrowing capacity on credit facility     $ 5,500,000 € 5.0  
2018 Credit Agreement | Revolving Credit Facility          
Line of Credit Facility [Line Items]          
Borrowing capacity on line of credit $ 450,000,000        
Additional borrowing capacity on line of credit 250,000,000        
Line of Credit borrowings used to support letter of credit $ 20,000,000        
Maturity date Oct. 24, 2023        
Interest coverage ratio   1017.00%      
Leverage ratio   232.00%      
Financial covenants leverage ratio step up 400.00%        
Minimum amount for material acquisition $ 50,000,000        
Annual share repurchase and dividends limit on leverage ratio basis $ 20,000,000        
Leverage ratio required for dividend or share activity 275.00%        
Maximum additional dividends amount permitted to distribute $ 15,000,000        
Commitment fee percentage on line of credit   0.35%      
Remaining borrowing capacity on line of credit   $ 151,000,000.0      
Revolving credit facility, balance outstanding [1]   295,378,000     $ 227,792,000
Letters of credit outstanding   $ 3,600,000      
2018 Credit Agreement | Revolving Credit Facility | Minimum          
Line of Credit Facility [Line Items]          
Interest coverage ratio 300.00%        
Leverage ratio 350.00%        
Top Tier Foreign Subsidiaries | 2018 Credit Agreement | Revolving Credit Facility          
Line of Credit Facility [Line Items]          
Percent of lenders security interest on capital stock foreign subsidiary 65.00%        
[1] Represents the weighted-average interest rate in effect at the respective periods, including any applicable margin. The interest rates do not include amortization of debt issuance costs or commitment fees.
v3.19.3
Fair Value Measurements - Summary of Fair Value Assets Measured on Recurring Basis (Details) - Fair Value, Measurements, Recurring - USD ($)
$ in Thousands
Sep. 30, 2019
Dec. 31, 2018
Fair value information related to assets    
Assets $ 3,055 $ 2,638
Quoted Prices in Active Markets (Level 1)    
Fair value information related to assets    
Assets 3,055 2,638
Money market funds    
Fair value information related to assets    
Assets [1] 122 121
Money market funds | Quoted Prices in Active Markets (Level 1)    
Fair value information related to assets    
Assets [1] 122 121
Other mutual funds    
Fair value information related to assets    
Assets [2] 2,933 2,517
Other mutual funds | Quoted Prices in Active Markets (Level 1)    
Fair value information related to assets    
Assets [2] $ 2,933 $ 2,517
[1] Money market funds are included in “Cash and cash equivalents” in the Condensed Consolidated Balance Sheets. These investments are classified as available-for-sale and are recorded at fair value. There have been no realized gains or losses related to these investments and we have not experienced any redemption restrictions with respect to any of the money market mutual funds.
[2] Other mutual funds are included in “Other investments and assets” in the Condensed Consolidated Balance Sheets.
v3.19.3
Fair Value Measurements - Summary of Fair Value Assets Measured on Recurring Basis (Parenthetical) (Details) - Money market funds
9 Months Ended
Sep. 30, 2019
USD ($)
Fair Value Assets And Liabilities Measured On Recurring And Nonrecurring Basis [Line Items]  
Realized gains on the investments $ 0
Unrealized gains on the investments $ 0
v3.19.3
Accumulated Other Comprehensive Income (Loss) - Schedule of Accumulated Other Comprehensive Income (Loss) (Details) - USD ($)
$ in Thousands
3 Months Ended 9 Months Ended
Sep. 30, 2018
Mar. 31, 2018
Sep. 30, 2019
Sep. 30, 2018
Accumulated Other Comprehensive Income (Loss), Net of Tax [Roll Forward]        
Beginning Balance $ 436,181 $ 442,937 $ 450,555 $ 442,937
Ending Balance 478,064 429,479 532,527 478,064
Cumulative Foreign Currency Translation Adjustments        
Accumulated Other Comprehensive Income (Loss), Net of Tax [Roll Forward]        
Beginning Balance   (12,026) (36,332) (12,026)
Other comprehensive income (loss) before reclassifications     3,868 (7,864)
Net other comprehensive income (loss)     3,868 (7,864)
Ending Balance (19,890)   (32,464) (19,890)
Unrecognized Net Actuarial Loss and Prior Service Credit, Net        
Accumulated Other Comprehensive Income (Loss), Net of Tax [Roll Forward]        
Beginning Balance   (11,158) (11,643) (11,158)
Amounts reclassified from AOCI, net of tax     196 (715)
Net other comprehensive income (loss)     196 (715)
Ending Balance (11,873)   (11,447) (11,873)
Accumulated Other Comprehensive Income (Loss)        
Accumulated Other Comprehensive Income (Loss), Net of Tax [Roll Forward]        
Beginning Balance (33,719) (22,568) (47,975) (22,568)
Other comprehensive income (loss) before reclassifications     3,868 (7,864)
Amounts reclassified from AOCI, net of tax     196 (715)
Net other comprehensive income (loss)     4,064 (8,579)
Ending Balance $ (31,763) (25,848) $ (43,911) (31,763)
Accumulated Other Comprehensive Income (Loss) | ASU 2016-01        
Accumulated Other Comprehensive Income (Loss), Net of Tax [Roll Forward]        
Adoption of ASU   (616)   (616) [1]
Unrealized Gains on Investments        
Accumulated Other Comprehensive Income (Loss), Net of Tax [Roll Forward]        
Beginning Balance   $ 616   616
Unrealized Gains on Investments | ASU 2016-01        
Accumulated Other Comprehensive Income (Loss), Net of Tax [Roll Forward]        
Adoption of ASU [1]       $ (616)
[1] Upon the adoption of ASU 2016-01, Financial Instruments – Overall: Recognition and Measurement of Financial Assets and Financial Liabilities, we recorded a cumulative-effect adjustment from unrealized gains on investments to beginning retained earnings.
v3.19.3
Income Per Share - Reconciliation of Basic and Diluted Income (loss) Per Share (Details) - USD ($)
$ / shares in Units, shares in Thousands, $ in Thousands
3 Months Ended 9 Months Ended
Sep. 30, 2019
Sep. 30, 2018
Sep. 30, 2019
Sep. 30, 2018
Numerator:        
Net income attributable to Viad (diluted) $ 31,416 $ 37,389 $ 27,463 $ 51,492
Less: Allocation to non-vested shares (226) (338) (196) (493)
Adjustment to the redemption value of redeemable noncontrolling interest (264) (84) (530) (174)
Net income allocated to Viad common stockholders (basic) $ 30,926 $ 36,967 $ 26,737 $ 50,825
Denominator:        
Basic weighted-average outstanding common shares 20,168 20,145 20,129 20,187
Additional dilutive shares related to share-based compensation 143 242 138 240
Diluted weighted-average outstanding shares 20,311 20,387 20,267 20,427
Basic income attributable to Viad common stockholders $ 1.53 $ 1.84 $ 1.33 $ 2.52
Diluted income attributable to Viad common stockholders $ 1.53 $ 1.83 $ 1.33 $ 2.51
v3.19.3
Income Taxes - Narrative (Details) - USD ($)
$ in Millions
3 Months Ended 9 Months Ended
Sep. 30, 2019
Sep. 30, 2018
Sep. 30, 2019
Sep. 30, 2018
Income Tax Disclosure [Abstract]        
Effective income tax rate 25.60% 21.80% 26.50% 22.80%
Federal statutory tax rate     21.00%  
Income taxes paid     $ 12.1 $ 20.2
v3.19.3
Pension and Postretirement Benefits - Components of Net Periodic Benefit Cost of Pension and Postretirement Benefit Plans (Details) - USD ($)
$ in Thousands
3 Months Ended 9 Months Ended
Sep. 30, 2019
Sep. 30, 2018
Sep. 30, 2019
Sep. 30, 2018
Domestic Plans | Pension Plans        
Net periodic benefit cost:        
Service cost $ 15 $ 13 $ 46 $ 48
Interest cost 209 198 646 585
Expected return on plan assets (35) (65) (74) (145)
Recognized net actuarial loss 96 124 302 370
Net periodic benefit cost 285 270 920 858
Domestic Plans | Postretirement Benefit Plans        
Net periodic benefit cost:        
Service cost 13 4 48 60
Interest cost 93 129 343 337
Amortization of prior service credit (47) (51) (141) (154)
Recognized net actuarial loss (43) 187 84 304
Net periodic benefit cost 16 269 334 547
Foreign Pension Plans        
Net periodic benefit cost:        
Service cost 101 138 303 418
Interest cost 92 91 281 273
Expected return on plan assets (122) (126) (364) (382)
Recognized net actuarial loss 37 38 111 120
Net periodic benefit cost $ 108 $ 141 $ 331 $ 429
v3.19.3
Pension and Postretirement Benefits - Narrative (Details)
$ in Millions
9 Months Ended
Sep. 30, 2019
USD ($)
Postretirement Benefit Plans  
Defined Benefit Plan Disclosure [Line Items]  
Amount expected to contribute in postretirement benefit plans $ 1.2
Pension and Other Postretirement Benefit Contributions 0.7
Funded Plans | Pension Plans  
Defined Benefit Plan Disclosure [Line Items]  
Amount expected to contribute in funded pension plans 1.0
Pension Contributions 1.0
Unfunded Pension Plans | Pension Plans  
Defined Benefit Plan Disclosure [Line Items]  
Amount expected to contribute in unfunded pension plans 1.2
Pension Contributions $ 0.7
v3.19.3
Restructuring Charges - Changes to Restructuring Liability by Major Restructuring Activity (Details) - USD ($)
$ in Thousands
3 Months Ended 9 Months Ended
Sep. 30, 2019
Sep. 30, 2018
Sep. 30, 2019
Sep. 30, 2018
Restructuring Cost And Reserve [Line Items]        
Beginning balance     $ 2,251  
Restructuring charges $ 1,702 $ 175 6,845 $ 999
Cash payments     (5,161)  
Adjustment to liability     18  
Ending balance 3,953   3,953  
GES | Severance & Employee Benefits        
Restructuring Cost And Reserve [Line Items]        
Beginning balance     2,039  
Restructuring charges     5,243  
Cash payments     (4,428)  
Adjustment to liability     (45)  
Ending balance 2,809   2,809  
GES | Facilities        
Restructuring Cost And Reserve [Line Items]        
Beginning balance     200  
Restructuring charges     1,397  
Cash payments     (513)  
Adjustment to liability     56  
Ending balance 1,140   1,140  
Other Restructuring | Severance & Employee Benefits        
Restructuring Cost And Reserve [Line Items]        
Beginning balance     12  
Restructuring charges     205  
Cash payments     (220)  
Adjustment to liability     7  
Ending balance $ 4   $ 4  
v3.19.3
Leases and Other - Summary of Balance Sheet Presentation of Operating and Finance Leases (Details)
$ in Thousands
Sep. 30, 2019
USD ($)
Lessee Lease Description [Line Items]  
Operating lease right-of-use assets $ 103,403
Finance lease assets 25,257
Total lease assets 128,660
Operating lease obligations 22,526
Finance lease obligations 2,784
Operating lease obligations 82,630
Finance lease obligations 22,546
Total lease liabilities 130,486
Operating Lease Right-of-Use Assets  
Lessee Lease Description [Line Items]  
Operating lease right-of-use assets 103,403
Property and Equipment, Net  
Lessee Lease Description [Line Items]  
Finance lease assets 25,257
Operating Lease Obligations  
Lessee Lease Description [Line Items]  
Operating lease obligations 22,526
Current Portion of Debt and Finance Lease Obligations  
Lessee Lease Description [Line Items]  
Finance lease obligations 2,784
Long-Term Operating Lease Obligations  
Lessee Lease Description [Line Items]  
Operating lease obligations 82,630
Long-Term Debt and Finance Lease Obligations  
Lessee Lease Description [Line Items]  
Finance lease obligations $ 22,546
v3.19.3
Leases and Other - Components of Least Expenses (Details) - USD ($)
$ in Thousands
3 Months Ended 9 Months Ended
Sep. 30, 2019
Sep. 30, 2019
Finance lease cost:    
Amortization of right-of-use assets $ 697 $ 1,895
Interest on lease liabilities 130 379
Operating lease cost 6,625 19,456
Short-term lease cost 571 1,348
Variable lease cost 1,478 4,695
Sublease income [1] 226  
Total lease cost, net $ 9,727 $ 27,773
[1]   Sublease income excludes rental income from owned assets, which is recorded in revenue.
v3.19.3
Leases and Other - Narrative (Details)
9 Months Ended
Sep. 30, 2019
Lessee Lease Description [Line Items]  
Operating lease not yet commenced, description we had certain facility and land leases that were executed but for which we did not have control of the underlying assets. Accordingly, we did not record the lease liabilities and right-of-use assets on our Condensed Consolidated Balance Sheets. These leases include future planned attractions for Pursuit that are currently in the planning or development phase and that we expect to commence between fiscal years 2019 and 2022 with lease terms of 15 to 20 years
Minimum  
Lessee Lease Description [Line Items]  
Operating lease not yet commenced, term of contract 15 years
Maximum  
Lessee Lease Description [Line Items]  
Operating lease not yet commenced, term of contract 20 years
v3.19.3
Leases and Other - Schedule of Other Information Related to Operating and Finance Leases (Details)
$ in Thousands
3 Months Ended 9 Months Ended
Sep. 30, 2019
USD ($)
Sep. 30, 2019
USD ($)
Cash paid for amounts included in the measurement of lease liabilities:    
Operating cash flows from operating leases $ 7,250 $ 20,853
Operating cash flows from finance leases 210 459
Financing cash flows from finance leases 525 1,537
Right-of-use assets obtained in exchange for lease obligations:    
Operating leases 49,123 62,375
Finance leases $ 14,893 $ 35,844
Weighted-average remaining lease term (years):    
Operating leases 8 years 2 months 23 days 8 years 2 months 23 days
Finance leases 15 years 4 months 28 days 15 years 4 months 28 days
Weighted-average discount rate:    
Operating leases 5.78% 5.78%
Finance leases 6.16% 6.16%
v3.19.3
Leases and Other - Schedule of Estimated Future Minimum Lease Payments Under Non-cancelable Leases Excluding Variable Leases and Variable Non-lease Components (Details) - USD ($)
$ in Thousands
Sep. 30, 2019
Dec. 31, 2018
Operating Leases    
Remainder of 2019 $ 7,040  
2020 23,839  
2021 17,340  
2022 15,102  
2023 12,368  
Thereafter 62,643  
Total future lease payments 138,332  
Less: Amount representing interest (33,176)  
Present value of minimum lease payments 105,156  
Current portion 22,526  
Long-term portion 82,630  
Finance Leases    
Remainder of 2019 1,323  
2020 4,136  
2021 3,381  
2022 2,920  
2023 2,784  
Thereafter 25,125  
Total future lease payments 39,669  
Less: Amount representing interest (14,339)  
Present value of minimum lease payments 25,330 $ 4,639
Current portion 2,784  
Long-term portion 22,546  
Total    
Remainder of 2019 8,363  
2020 27,975  
2021 20,721  
2022 18,022  
2023 15,152  
Thereafter 87,768  
Total future lease payments 178,001  
Less: Amount representing interest (47,515)  
Total lease liabilities 130,486  
Current portion 25,310  
Long-term portion $ 105,176  
v3.19.3
Leases and Other - Schedule of Estimated Future Minimum Rentals Under Non-cancellable Leases (Details)
$ in Thousands
Sep. 30, 2019
USD ($)
Future Minimum Sublease Rentals Under Non-cancellable Leases  
Remainder of 2019 $ 453
2020 2,020
2021 1,716
2022 1,384
2023 1,192
Thereafter 5,764
Total minimum sublease rents $ 12,529
v3.19.3
Leases and Other - Schedule of Future Minimum Rental Payments and Related Sublease Rentals Receivable (Details)
$ in Thousands
Dec. 31, 2018
USD ($)
Future minimum rental payments and related sublease rentals receivable  
Rental Payments, 2019 $ 28,671
Rental Payments, 2020 22,919
Rental Payments, 2021 13,217
Rental Payments, 2022 8,280
Rental Payments, 2023 6,201
Rental Payments, Thereafter 8,305
Rental Payments, Total 87,593
Receivable Under Subleases, 2019 2,382
Receivable Under Subleases, 2020 1,582
Receivable Under Subleases, 2021 1,711
Receivable Under Subleases, 2022 1,370
Receivable Under Subleases, 2023 1,270
Receivable Under Subleases, Thereafter 2,798
Receivable Under Subleases, Total $ 11,113
v3.19.3
Litigation, Claims, Contingencies and Other - Narrative (Details)
3 Months Ended 9 Months Ended
Sep. 30, 2019
USD ($)
Sep. 30, 2018
USD ($)
Sep. 30, 2019
USD ($)
Agreement
Sep. 30, 2018
USD ($)
Loss Contingencies [Line Items]        
Legal settlement     $ 8,500,000  
Environmental remediation liability $ 2,300,000   2,300,000  
Maximum potential amount of future payments 76,500,000   $ 76,500,000  
Guarantees relate to facilities and equipment leased by the company     2040-01  
Recourse provision to recover guarantees 0   $ 0  
Bargaining agreements | Agreement     100  
Multiemployer plans, withdrawal obligation 15,500,000   $ 15,500,000  
Self insurance reserve 15,600,000   15,600,000  
Workers' compensation liability 11,000,000.0   11,000,000.0  
Self insurance reserve for general and auto 4,600,000   4,600,000  
Self insurance reserve on discontinued operations 2,500,000   2,500,000  
Estimated employee health benefit claims incurred but not yet reported 1,500,000   1,500,000  
Payments for self insurance 2,000,000.0 $ 1,400,000 5,300,000 $ 4,100,000
Self insurance reserve in which company is the primary obligor 9,200,000   9,200,000  
Self insurance reserve in which company is the primary obligor for workers compensation 8,500,000   8,500,000  
Self insurance reserve in which company is the primary obligor for general liability 700,000   700,000  
Minimum        
Loss Contingencies [Line Items]        
General range on claims 200,000   200,000  
Maximum        
Loss Contingencies [Line Items]        
General range on claims $ 500,000   500,000  
GES        
Loss Contingencies [Line Items]        
Legal settlement     $ 8,500,000  
v3.19.3
Redeemable Noncontrolling Interest - Narrative (Details) - Esja Attractions ehf. - EUR (€)
9 Months Ended
Sep. 30, 2019
Nov. 03, 2017
Redeemable Noncontrolling Interest [Line Items]    
Percentage of controlling interest acquired   54.50%
EBITDA trailing period 12 months  
Put option right of exercisable period upon earnings 36 months  
Redeemable noncontrolling interest conditions The put option is only exercisable after 36 months of business operation (the “Reference Date”) and if the FlyOver Iceland attraction has earned a minimum of €3.25 million in unadjusted EBITDA during the most recent fiscal year and during the trailing 12-month period prior to exercise (the “Put Option Condition”). The put option is exercisable during a period of 12 months following the Reference Date (the “Option Period”) if the Put Option Condition has been met. If the Put Option Condition has not been met during the first Option Period, the Reference Date will be extended for an additional 12 months up to three times. If after 72 months, the FlyOver Iceland attraction has not achieved the Put Option Condition, the put option expires. If the Put Option Condition is met during any of the Option Periods, yet the shares are not exercised prior to the end of the 12-month Option Period, the put option will expire.   
Put option exercisable period 12 months  
Put option additional exercisable period upon not meeting of conditions 12 months  
FlyOver Iceland    
Redeemable Noncontrolling Interest [Line Items]    
Put option expiration period 72 months  
FlyOver Iceland | Minimum    
Redeemable Noncontrolling Interest [Line Items]    
Unadjusted EBITDA € 3,250,000  
v3.19.3
Redeemable Noncontrolling Interest - Summary of Changes in Redeemable Noncontrolling Interest (Details) - USD ($)
$ in Thousands
3 Months Ended 9 Months Ended
Sep. 30, 2019
Sep. 30, 2018
Sep. 30, 2019
Sep. 30, 2018
Noncontrolling Interest [Abstract]        
Beginning balance     $ 5,909  
Net loss attributable to redeemable noncontrolling interest $ (368) $ (128) (644) $ (289)
Adjustment to the redemption value     530  
Foreign currency translation adjustment     (364)  
Ending balance $ 5,431   $ 5,431  
v3.19.3
Segment Information - Reconciliation of Income Statement Items from Reportable Segments (Details) - USD ($)
$ in Thousands
3 Months Ended 9 Months Ended
Sep. 30, 2019
Sep. 30, 2018
Sep. 30, 2019
Sep. 30, 2018
Reportable segments reconciliations:        
Total revenue $ 362,488 $ 358,163 $ 1,050,361 $ 999,268
Segment operating income (loss) 52,142 52,809 82,374 76,037
Interest income 79 101 260 238
Interest expense (3,740) (2,608) (9,612) (7,031)
Multi-employer pension plan withdrawal     (15,508)  
Other expense (281) (527) (1,192) (1,308)
Restructuring recoveries (charges) (1,702) (175) (6,845) (999)
Income from continuing operations before income taxes 46,498 49,600 40,977 66,972
GES        
Reportable segments reconciliations:        
Total revenue 227,445 246,110 849,242 829,138
Pursuit        
Reportable segments reconciliations:        
Total revenue 135,043 112,053 201,119 170,130
Operating Segments        
Reportable segments reconciliations:        
Segment operating income (loss) 54,806 56,568 90,120 84,515
Operating Segments | GES        
Reportable segments reconciliations:        
Total revenue 227,445 246,110 849,242 829,138
Segment operating income (loss) (11,586) 1,160 25,410 30,745
Legal settlement     (8,500)  
Operating Segments | Pursuit        
Reportable segments reconciliations:        
Total revenue 135,043 112,053 201,119 170,130
Segment operating income (loss) 66,392 55,408 64,710 53,770
Restructuring recoveries (charges)       (140)
Impairment recoveries       35
Intersegment Eliminations | GES        
Reportable segments reconciliations:        
Total revenue (5,724) (2,379) (14,731) (11,888)
Intersegment Eliminations | Pursuit        
Reportable segments reconciliations:        
Total revenue (671) (554) (1,355) (1,260)
Corporate Eliminations        
Reportable segments reconciliations:        
Segment operating income (loss) [1] 16 18 49 51
Corporate        
Reportable segments reconciliations:        
Segment operating income (loss) (2,680) (3,777) (7,795) (8,529)
Restructuring recoveries (charges) (62)   (205) 10
North America | Operating Segments | GES        
Reportable segments reconciliations:        
Total revenue [2] 191,983 200,855 698,906 683,810
Segment operating income (loss) (8,562) 1,367 22,635 25,055
Restructuring recoveries (charges) (881) (162) (5,139) (402)
EMEA | Operating Segments | GES        
Reportable segments reconciliations:        
Total revenue [2] 41,186 47,634 165,067 157,216
Segment operating income (loss) (3,024) (207) 2,775 5,690
Restructuring recoveries (charges) $ (759) $ (13) $ (1,501) $ (467)
[1] Corporate eliminations represent the elimination of depreciation expense recorded by Pursuit associated with previously eliminated intercompany profit realized by GES for renovations to Pursuit’s Banff Gondola.
[2] During the first quarter of 2019, we realigned GES’ organizational structure. As a result, we changed GES’ reportable segments to reflect how our chief operating decision maker regularly reviews and makes decisions regarding the allocation of resources. Accordingly, GES’ new reportable segments are GES North America and GES EMEA.
v3.19.3
Common Stock Repurchases - Narrative (Details) - USD ($)
$ in Millions
9 Months Ended
Sep. 30, 2019
Sep. 30, 2018
Feb. 07, 2019
Common Stock Repurchases (Textual) [Abstract]      
Authorized repurchase of additional shares     500,000
Repurchased shares 0 175,091  
Shares remain available for repurchase 600,067    
Common stock purchased for treasury   $ 9.1