| Debt
|
|
|
|
|
|
|
|
(in thousands) | ||||
Cash and cash equivalents
|
$ | 21 | ||
Other current assets
|
715 | |||
Property and equipment
|
13,058 | |||
Goodwill
|
2,583 | |||
Other intangible assets
|
60 | |||
|
||||
Total assets acquired
|
16,437 | |||
|
||||
|
||||
Customer deposits
|
(684 | ) | ||
Other current liabilities
|
(46 | ) | ||
Other long-term liabilities
|
(382 | ) | ||
|
||||
Total liabilities acquired
|
(1,112 | ) | ||
|
||||
Purchase price
|
$ | 15,325 | ||
|
(in thousands) | ||||
Cash and cash equivalents
|
$ | 9 | ||
Other current assets
|
126 | |||
Property and equipment
|
8,750 | |||
Goodwill
|
1,331 | |||
Other intangible assets
|
400 | |||
|
||||
Total assets acquired
|
10,616 | |||
|
||||
|
||||
Customer deposits
|
(99 | ) | ||
Other current liabilities
|
(12 | ) | ||
|
||||
Total liabilities acquired
|
(111 | ) | ||
|
||||
Purchase price
|
$ | 10,505 | ||
|
|
June 30, | December 31, | |||||||
2011 | 2010 | |||||||
(in thousands) | ||||||||
Raw materials
|
$ | 19,617 | $ | 18,488 | ||||
Work in process
|
11,329 | 20,182 | ||||||
|
||||||||
Inventories
|
$ | 30,946 | $ | 38,670 | ||||
|
|
June 30, | December 31, | |||||||
2011 | 2010 | |||||||
(in thousands) | ||||||||
Land
|
$ | 15,022 | $ | 9,139 | ||||
Buildings and leasehold improvements
|
107,733 | 89,945 | ||||||
Equipment and other
|
311,781 | 299,558 | ||||||
|
||||||||
|
434,536 | 398,642 | ||||||
Accumulated depreciation
|
(263,885 | ) | (249,296 | ) | ||||
|
||||||||
Property and equipment, net
|
$ | 170,651 | $ | 149,346 | ||||
|
|
Marketing & | ||||||||||||||||
Marketing & | Events | Travel & | ||||||||||||||
Events U.S. | International | Recreation Group | Total | |||||||||||||
(in thousands) | ||||||||||||||||
Balance at January 1, 2011
|
$ | 62,686 | $ | 22,455 | $ | 42,300 | $ | 127,441 | ||||||||
Business acquisitions
|
— | — | 3,914 | 3,914 | ||||||||||||
Foreign currency translation adjustments
|
— | 711 | 1,761 | 2,472 | ||||||||||||
|
||||||||||||||||
Balance at June 30, 2011
|
$ | 62,686 | $ | 23,166 | $ | 47,975 | $ | 133,827 | ||||||||
|
Gross Carrying | Accumulated | Net Carrying | ||||||||||
Value | Amortization | Value | ||||||||||
(in thousands) | ||||||||||||
Amortized intangible assets:
|
||||||||||||
Customer contracts and relationships
|
$ | 2,535 | $ | (1,443 | ) | $ | 1,092 | |||||
Proprietary technology
|
524 | (495 | ) | 29 | ||||||||
Design libraries
|
175 | (153 | ) | 22 | ||||||||
Other
|
71 | (24 | ) | 47 | ||||||||
|
||||||||||||
|
3,305 | (2,115 | ) | 1,190 | ||||||||
|
||||||||||||
Unamortized intangible assets:
|
||||||||||||
Business licenses
|
460 | — | 460 | |||||||||
|
||||||||||||
Total
|
$ | 3,765 | $ | (2,115 | ) | $ | 1,650 | |||||
|
Gross Carrying | Accumulated | Net Carrying | ||||||||||
Value | Amortization | Value | ||||||||||
(in thousands) | ||||||||||||
Customer contracts and relationships
|
$ | 2,506 | $ | (1,135 | ) | $ | 1,371 | |||||
Proprietary technology
|
517 | (448 | ) | 69 | ||||||||
Design libraries
|
175 | (110 | ) | 65 | ||||||||
Other
|
166 | (108 | ) | 58 | ||||||||
|
||||||||||||
|
$ | 3,364 | $ | (1,801 | ) | $ | 1,563 | |||||
|
(in thousands) | ||||
2011
|
$ | 344 | ||
2012
|
$ | 360 | ||
2013
|
$ | 350 | ||
2014
|
$ | 119 | ||
2015
|
$ | 17 |
|
June 30, | December 31, | |||||||
2011 | 2010 | |||||||
(in thousands) | ||||||||
Continuing operations:
|
||||||||
Customer deposits
|
$ | 36,804 | $ | 43,411 | ||||
Accrued compensation
|
25,451 | 17,599 | ||||||
Self-insured liability accrual
|
8,113 | 8,278 | ||||||
Accrued income taxes
|
3,289 | — | ||||||
Accrued employee benefit costs
|
3,025 | 3,127 | ||||||
Accrued foreign income taxes
|
2,892 | 2,852 | ||||||
Accrued restructuring
|
2,000 | 4,272 | ||||||
Accrued sales and use taxes
|
1,185 | 2,990 | ||||||
Accrued dividends
|
835 | 827 | ||||||
Other
|
10,553 | 11,084 | ||||||
|
||||||||
|
94,147 | 94,440 | ||||||
|
||||||||
Discontinued operations:
|
||||||||
Environmental remediation liabilities
|
1,025 | 1,124 | ||||||
Self-insured liability accrual
|
469 | 552 | ||||||
Other
|
517 | 633 | ||||||
|
||||||||
|
2,011 | 2,309 | ||||||
|
||||||||
Total other current liabilities
|
$ | 96,158 | $ | 96,749 | ||||
|
June 30, | December 31, | |||||||
2011 | 2010 | |||||||
(in thousands) | ||||||||
Continuing operations:
|
||||||||
Self-insured liability accrual
|
$ | 14,581 | $ | 14,330 | ||||
Accrued compensation
|
4,892 | 5,129 | ||||||
Accrued restructuring
|
4,816 | 3,724 | ||||||
Foreign deferred tax liability
|
1,459 | 1,582 | ||||||
Accrued income taxes
|
64 | 146 | ||||||
Other
|
5,544 | 3,945 | ||||||
|
||||||||
|
31,356 | 28,856 | ||||||
|
||||||||
Discontinued operations:
|
||||||||
Self-insured liability accrual
|
6,826 | 6,898 | ||||||
Environmental remediation liabilities
|
4,925 | 4,953 | ||||||
Accrued income taxes
|
1,004 | 987 | ||||||
Other
|
1,279 | 1,331 | ||||||
|
||||||||
|
14,034 | 14,169 | ||||||
|
||||||||
Total other deferred items and liabilities
|
$ | 45,390 | $ | 43,025 | ||||
|
|
|
Total Viad | Total | |||||||||||
Stockholders’ | Noncontrolling | Stockholders’ | ||||||||||
Equity | Interest | Equity | ||||||||||
(in thousands) | ||||||||||||
Balance at January 1, 2011
|
$ | 378,959 | $ | 7,752 | $ | 386,711 | ||||||
Net income (loss)
|
14,272 | (363 | ) | 13,909 | ||||||||
Dividends on common stock
|
(1,630 | ) | — | (1,630 | ) | |||||||
Common stock purchased for treasury
|
(679 | ) | — | (679 | ) | |||||||
Employee benefit plans
|
1,931 | — | 1,931 | |||||||||
Unrealized foreign currency translation adjustment
|
5,612 | — | 5,612 | |||||||||
Unrealized gain on investments
|
61 | — | 61 | |||||||||
Prior service credit and net actuarial loss
|
13 | — | 13 | |||||||||
ESOP allocation adjustment
|
620 | — | 620 | |||||||||
Other
|
9 | — | 9 | |||||||||
|
||||||||||||
Balance at June 30, 2011
|
$ | 399,168 | $ | 7,389 | $ | 406,557 | ||||||
|
Total Viad | Total | |||||||||||
Stockholders’ | Noncontrolling | Stockholders’ | ||||||||||
Equity | Interest | Equity | ||||||||||
(in thousands) | ||||||||||||
Balance at January 1, 2010
|
$ | 377,515 | $ | 7,116 | $ | 384,631 | ||||||
Net income (loss)
|
46 | (216 | ) | (170 | ) | |||||||
Dividends on common stock
|
(1,644 | ) | — | (1,644 | ) | |||||||
Common stock purchased for treasury
|
(573 | ) | — | (573 | ) | |||||||
Employee benefit plans
|
1,708 | — | 1,708 | |||||||||
Unrealized foreign currency translation adjustment
|
(3,910 | ) | — | (3,910 | ) | |||||||
Unrealized loss on investments
|
(19 | ) | — | (19 | ) | |||||||
Prior service credit and net actuarial loss
|
(1,666 | ) | — | (1,666 | ) | |||||||
ESOP allocation adjustment
|
750 | — | 750 | |||||||||
Other
|
6 | — | 6 | |||||||||
|
||||||||||||
Balance at June 30, 2010
|
$ | 372,213 | $ | 6,900 | $ | 379,113 | ||||||
|
|
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.
|
Fair Value Measurements at June 30, 2011 Using | ||||||||||||||||
Significant | ||||||||||||||||
Quoted Prices | Other | Significant | ||||||||||||||
in Active | Observable | Unobserved | ||||||||||||||
June 30, | Markets | Inputs | Inputs | |||||||||||||
2011 | (Level 1) | (Level 2) | (Level 3) | |||||||||||||
(in thousands) | ||||||||||||||||
Assets:
|
||||||||||||||||
Money market funds
|
$ | 1,245 | $ | 1,245 | $ | — | $ | — | ||||||||
Other mutual funds
|
1,670 | 1,670 | — | — | ||||||||||||
|
||||||||||||||||
Total
|
$ | 2,915 | $ | 2,915 | $ | — | $ | — | ||||||||
|
|
2011 | 2010 | |||||||||||||||
(in thousands) | ||||||||||||||||
Computed income tax expense at statutory
federal income tax rate of 35%
|
$ | 7,839 | 35.0 | % | $ | 640 | 35.0 | % | ||||||||
State income tax expense (benefit), net of
federal benefit or provision
|
563 | 2.5 | % | (34 | ) | (1.9 | %) | |||||||||
Change in enacted tax law
|
— | 0.0 | % | 1,279 | 70.0 | % | ||||||||||
Other, net
|
86 | 0.4 | % | 113 | 6.2 | % | ||||||||||
|
||||||||||||||||
Income tax expense
|
$ | 8,488 | 37.9 | % | $ | 1,998 | 109.3 | % | ||||||||
|
|
Domestic Plans | ||||||||||||||||||||||||
Postretirement | Foreign | |||||||||||||||||||||||
Pension Plans | Benefit Plans | Pension Plans | ||||||||||||||||||||||
2011 | 2010 | 2011 | 2010 | 2011 | 2010 | |||||||||||||||||||
(in thousands) | ||||||||||||||||||||||||
Service cost
|
$ | 37 | $ | 53 | $ | 37 | $ | 27 | $ | 94 | $ | 76 | ||||||||||||
Interest cost
|
300 | 311 | 232 | 265 | 186 | 195 | ||||||||||||||||||
Expected return on plan assets
|
(141 | ) | (149 | ) | (33 | ) | (41 | ) | (171 | ) | (151 | ) | ||||||||||||
Amortization of prior service cost (credit)
|
— | 10 | (319 | ) | (293 | ) | — | — | ||||||||||||||||
Recognized net actuarial loss
|
171 | 138 | 160 | 156 | — | — | ||||||||||||||||||
|
||||||||||||||||||||||||
Net periodic
benefit cost
|
$ | 367 | $ | 363 | $ | 77 | $ | 114 | $ | 109 | $ | 120 | ||||||||||||
|
Domestic Plans | ||||||||||||||||||||||||
Postretirement | Foreign | |||||||||||||||||||||||
Pension Plans | Benefit Plans | Pension Plans | ||||||||||||||||||||||
2011 | 2010 | 2011 | 2010 | 2011 | 2010 | |||||||||||||||||||
(in thousands) | ||||||||||||||||||||||||
Service cost
|
$ | 74 | $ | 106 | $ | 74 | $ | 54 | $ | 185 | $ | 151 | ||||||||||||
Interest cost
|
600 | 622 | 464 | 530 | 369 | 387 | ||||||||||||||||||
Expected return on plan assets
|
(282 | ) | (298 | ) | (66 | ) | (82 | ) | (337 | ) | (299 | ) | ||||||||||||
Amortization of prior service cost (credit)
|
— | 20 | (638 | ) | (586 | ) | — | — | ||||||||||||||||
Recognized net actuarial loss
|
341 | 277 | 320 | 313 | — | — | ||||||||||||||||||
|
||||||||||||||||||||||||
Net periodic benefit cost
|
$ | 733 | $ | 727 | $ | 154 | $ | 229 | $ | 217 | $ | 239 | ||||||||||||
|
|
Marketing & Events | ||||||||||||||||||||
Group Consolidation | Other Restructurings | |||||||||||||||||||
Severance & | Severance & | |||||||||||||||||||
Employee | Employee | |||||||||||||||||||
Benefits | Facilities | Benefits | Facilities | Total | ||||||||||||||||
(in thousands) | ||||||||||||||||||||
|
||||||||||||||||||||
Balance at January 1, 2011
|
$ | 1,106 | $ | 5,051 | $ | 197 | $ | 1,642 | $ | 7,996 | ||||||||||
Restructuring charges
|
439 | 1,036 | — | — | 1,475 | |||||||||||||||
Cash payments
|
(1,190 | ) | (849 | ) | (197 | ) | (141 | ) | (2,377 | ) | ||||||||||
Adjustment to liability
|
(128 | ) | — | — | (192 | ) | (320 | ) | ||||||||||||
Foreign currency translation adjustment
|
33 | 9 | — | — | 42 | |||||||||||||||
|
||||||||||||||||||||
Balance at June 30, 2011
|
$ | 260 | $ | 5,247 | $ | — | $ | 1,309 | $ | 6,816 | ||||||||||
|
|
|
Three months ended June 30, | Six months ended June 30, | |||||||||||||||
2011 | 2010 | 2011 | 2010 | |||||||||||||
(in thousands) | ||||||||||||||||
Revenues:
|
||||||||||||||||
Marketing & Events Group:
|
||||||||||||||||
U.S.
|
$ | 150,170 | $ | 144,460 | $ | 381,865 | $ | 313,869 | ||||||||
International
|
66,973 | 56,059 | 120,927 | 106,426 | ||||||||||||
Intersegment eliminations
|
(2,408 | ) | (4,609 | ) | (3,719 | ) | (7,445 | ) | ||||||||
|
||||||||||||||||
|
214,735 | 195,910 | 499,073 | 412,850 | ||||||||||||
Travel & Recreation Group
|
23,957 | 22,389 | 29,717 | 29,802 | ||||||||||||
|
||||||||||||||||
|
$ | 238,692 | $ | 218,299 | $ | 528,790 | $ | 442,652 | ||||||||
|
||||||||||||||||
Segment operating income (loss):
|
||||||||||||||||
Marketing & Events Group:
|
||||||||||||||||
U.S.
|
$ | 205 | $ | (2,297 | ) | $ | 18,139 | $ | (2,346 | ) | ||||||
International
|
6,650 | 6,532 | 10,435 | 9,169 | ||||||||||||
|
||||||||||||||||
|
6,855 | 4,235 | 28,574 | 6,823 | ||||||||||||
Travel & Recreation Group
|
3,007 | 3,490 | (1,453 | ) | 1,101 | |||||||||||
|
||||||||||||||||
|
9,862 | 7,725 | 27,121 | 7,924 | ||||||||||||
Corporate activities
|
(1,576 | ) | (2,058 | ) | (2,847 | ) | (2,702 | ) | ||||||||
|
||||||||||||||||
|
8,286 | 5,667 | 24,274 | 5,222 | ||||||||||||
Interest income
|
176 | 88 | 390 | 184 | ||||||||||||
Interest expense
|
(380 | ) | (473 | ) | (792 | ) | (966 | ) | ||||||||
Restructuring charges:
|
||||||||||||||||
Marketing & Events U.S.
|
(1,206 | ) | (272 | ) | (1,475 | ) | (2,325 | ) | ||||||||
Travel & Recreation Group
|
— | (235 | ) | — | (235 | ) | ||||||||||
Corporate
|
— | (52 | ) | — | (52 | ) | ||||||||||
|
||||||||||||||||
Income before income taxes
|
$ | 6,876 | $ | 4,723 | $ | 22,397 | $ | 1,828 | ||||||||
|
June 30, | December 31, | |||||||
2011 | 2010 | |||||||
(in thousands) | ||||||||
Assets:
|
||||||||
Marketing & Events U.S.
|
$ | 256,626 | $ | 235,965 | ||||
Marketing & Events International
|
83,823 | 83,441 | ||||||
Travel & Recreation Group
|
202,314 | 157,562 | ||||||
Corporate and other
|
102,960 | 139,535 | ||||||
|
||||||||
|
$ | 645,723 | $ | 616,503 | ||||
|
|