VIAD CORP, 10-K filed on 2/28/2018
Annual Report
Document and Entity Information (USD $)
In Millions, except Share data, unless otherwise specified
12 Months Ended
Dec. 31, 2017
Jan. 31, 2018
Jun. 30, 2017
Document And Entity Information [Abstract]
 
 
 
Entity Registrant Name
VIAD CORP 
 
 
Entity Central Index Key
0000884219 
 
 
Document Type
10-K 
 
 
Document Period End Date
Dec. 31, 2017 
 
 
Amendment Flag
false 
 
 
Document Fiscal Year Focus
2017 
 
 
Document Fiscal Period Focus
FY 
 
 
Current Fiscal Year End Date
--12-31 
 
 
Trading Symbol
VVI 
 
 
Entity Well-known Seasoned Issuer
Yes 
 
 
Entity Voluntary Filers
No 
 
 
Entity Current Reporting Status
Yes 
 
 
Entity Filer Category
Large Accelerated Filer 
 
 
Entity Public Float
 
 
$ 948 
Entity Common Stock, Shares Outstanding
 
20,422,762 
 
CONSOLIDATED BALANCE SHEETS (USD $)
In Thousands, unless otherwise specified
Dec. 31, 2017
Dec. 31, 2016
Current assets
 
 
Cash and cash equivalents
$ 53,723 
$ 20,900 
Accounts receivable, net of allowances for doubtful accounts of $2,023 and $1,342, respectively
104,811 
104,648 
Inventories
30,372 
31,420 
Other current assets
21,030 
18,449 
Total current assets
209,936 
175,417 
Property and equipment, net
305,571 
279,858 
Other investments and assets
47,512 
44,297 
Deferred income taxes
23,548 
42,549 
Goodwill
270,551 
254,022 
Other intangible assets, net
62,781 
73,673 
Total Assets
919,899 
869,816 
Current liabilities
 
 
Accounts payable
77,380 
67,596 
Customer deposits
33,415 
42,723 
Accrued compensation
30,614 
29,913 
Other current liabilities
38,720 
30,390 
Current portion of debt and capital lease obligations
152,599 1
174,968 1
Total current liabilities
332,728 
345,590 
Long-term debt and capital lease obligations
56,593 
74,243 
Pension and postretirement benefits
28,135 
28,611 
Other deferred items and liabilities
52,858 
50,734 
Total liabilities
470,314 
499,178 
Commitments and contingencies
   
   
Redeemable noncontrolling interest
6,648 
 
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
574,458 
573,841 
Retained earnings
65,836 
16,291 
Unearned employee benefits and other
218 
172 
Accumulated other comprehensive loss
(22,568)
(39,391)
Common stock in treasury, at cost, 4,518,099 and 4,613,520 shares, respectively
(226,215)
(230,960)
Total Viad stockholders’ equity
429,131 
357,355 
Non-redeemable noncontrolling interest
13,806 
13,283 
Total stockholders’ equity
442,937 
370,638 
Total Liabilities and Stockholders’ Equity
$ 919,899 
$ 869,816 
CONSOLIDATED BALANCE SHEETS (Parenthetical) (USD $)
In Thousands, except Share data, unless otherwise specified
Dec. 31, 2017
Dec. 31, 2016
Statement Of Financial Position [Abstract]
 
 
Allowance for doubtful accounts
$ 2,023 
$ 1,342 
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
4,518,099 
4,613,520 
CONSOLIDATED STATEMENTS OF OPERATIONS (USD $)
In Thousands, except Per Share data, unless otherwise specified
12 Months Ended
Dec. 31, 2017
Dec. 31, 2016
Dec. 31, 2015
Revenue:
 
 
 
Exhibition and event services
$ 967,352 
$ 881,137 
$ 799,752 
Exhibits and environments
165,745 
170,469 
177,126 
Pursuit services
173,868 
153,364 
112,170 
Total revenue
1,306,965 
1,204,970 
1,089,048 
Costs and expenses:
 
 
 
Costs of services
1,050,547 
954,667 
868,369 
Costs of products sold
161,992 
165,118 
166,095 
Business interruption gain
(2,692)
 
 
Corporate activities
12,877 
10,322 
9,720 
Interest income
(319)
(1,165)
(658)
Interest expense
8,304 
5,898 
4,535 
Restructuring charges
1,004 
5,183 
2,956 
Impairment charges (recoveries), net
(29,098)
218 
96 
Total costs and expenses
1,202,615 
1,140,241 
1,051,113 
Income from continuing operations before income taxes
104,350 
64,729 
37,935 
Income tax expense
45,898 
21,250 
10,493 
Income from continuing operations
58,452 
43,479 
27,442 
Loss from discontinued operations
(268)
(684)
(394)
Net income
58,184 
42,795 
27,048 
Net income attributable to non-redeemable noncontrolling interest
(523)
(526)
(442)
Net loss attributable to redeemable noncontrolling interest
46 
 
 
Net income attributable to Viad
57,707 
42,269 
26,606 
Diluted income (loss) per common share:
 
 
 
Continuing operations attributable to Viad common stockholders
$ 2.84 
$ 2.12 
$ 1.34 
Discontinued operations attributable to Viad common stockholders
$ (0.01)
$ (0.03)
$ (0.02)
Net income attributable to Viad common stockholders
$ 2.83 
$ 2.09 
$ 1.32 
Weighted-average outstanding and potentially dilutive common shares
20,405 
20,177 
19,981 
Basic income (loss) per common share:
 
 
 
Continuing operations attributable to Viad common stockholders
$ 2.84 
$ 2.12 
$ 1.34 
Discontinued operations attributable to Viad common stockholders
$ (0.01)
$ (0.03)
$ (0.02)
Net income attributable to Viad common stockholders
$ 2.83 
$ 2.09 
$ 1.32 
Weighted-average outstanding common shares
20,146 
19,990 
19,797 
Dividends declared per common share
$ 0.40 
$ 0.40 
$ 0.40 
Amounts attributable to Viad common stockholders
 
 
 
Income from continuing operations
57,975 
42,953 
27,000 
Loss from discontinued operations
(268)
(684)
(394)
Net income attributable to Viad
$ 57,707 
$ 42,269 
$ 26,606 
CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME (LOSS) (USD $)
In Thousands, unless otherwise specified
12 Months Ended
Dec. 31, 2017
Dec. 31, 2016
Dec. 31, 2015
Statement Of Income And Comprehensive Income [Abstract]
 
 
 
Net income
$ 58,184 
$ 42,795 
$ 27,048 
Other comprehensive income (loss):
 
 
 
Unrealized gains (losses) on investments, net of tax effects of $121, $47, and $(78)
195 
75 
(125)
Unrealized foreign currency translation adjustments, net of tax
17,058 
(5,827)
(35,673)
Change in net actuarial gain (loss), net of tax effects of $163, $617, and $653
344 
894 
2,556 
Change in prior service cost, net of tax effects of $(473), $(219), and $(210)
(774)
(357)
(345)
Comprehensive income (loss)
75,007 
37,580 
(6,539)
Net income attributable to non-redeemable noncontrolling interest
(523)
(526)
(442)
Net loss attributable to redeemable noncontrolling interest
46 
 
 
Comprehensive income (loss) attributable to Viad
$ 74,530 
$ 37,054 
$ (6,981)
CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME (LOSS) (Parenthetical) (USD $)
In Thousands, unless otherwise specified
12 Months Ended
Dec. 31, 2017
Dec. 31, 2016
Dec. 31, 2015
Statement Of Income And Comprehensive Income [Abstract]
 
 
 
Unrealized investment gains (losses) arising during the period, tax effects
$ 121 
$ 47 
$ (78)
Amortization of net actuarial gain (loss), tax effects
163 
617 
653 
Amortization of prior service cost, tax effects
$ (473)
$ (219)
$ (210)
CONSOLIDATED STATEMENTS OF STOCKHOLDERS' EQUITY (USD $)
In Thousands, unless otherwise specified
Total
Common Stock
Additional Capital
Retained Earnings (Deficit)
Unearned Employee Benefits and Other
Accumulated Other Comprehensive Income (Loss)
Common Stock in Treasury
Total Viad Equity
Non-Redeemable Non-Controlling Interest
Beginning Balance at Dec. 31, 2014
$ 347,702 
$ 37,402 
$ 582,066 
$ (36,427)
$ 23 
$ (589)
$ (247,088)
$ 335,387 
$ 12,315 
Increase (Decrease) in Stockholders' Equity [Roll Forward]
 
 
 
 
 
 
 
 
 
Net income
27,048 
 
 
26,606 
 
 
 
26,606 
442 
Dividends on common stock ($0.40 per share)
(8,036)
 
 
(8,036)
 
 
 
(8,036)
 
Common stock purchased for treasury
(4,816)
 
 
 
 
 
(4,816)
(4,816)
 
Employee benefit plans
4,536 
 
(7,957)
 
 
 
12,493 
4,536 
 
Share-based compensation—equity awards
2,156 
 
2,156 
 
 
 
 
2,156 
 
Tax expense from share-based compensation
360 
 
360 
 
 
 
 
360 
 
Unrealized foreign currency translation adjustment
(35,673)
 
 
 
 
(35,673)
 
(35,673)
 
Unrealized gain (loss) on investments
(125)
 
 
 
 
(125)
 
(125)
 
Amortization of net actuarial gain (loss)
2,556 
 
 
 
 
2,556 
 
2,556 
 
Amortization of prior service cost
(345)
 
 
 
 
(345)
 
(345)
 
Other, net
(25)
 
(102)
(9)
86 
 
 
(25)
 
Ending Balance at Dec. 31, 2015
335,338 
37,402 
576,523 
(17,866)
109 
(34,176)
(239,411)
322,581 
12,757 
Increase (Decrease) in Stockholders' Equity [Roll Forward]
 
 
 
 
 
 
 
 
 
Net income
42,795 
 
 
42,269 
 
 
 
42,269 
526 
Dividends on common stock ($0.40 per share)
(8,111)
 
 
(8,111)
 
 
 
(8,111)
 
Common stock purchased for treasury
(722)
 
 
 
 
 
(722)
(722)
 
Employee benefit plans
3,921 
 
(5,251)
 
 
 
9,172 
3,921 
 
Share-based compensation—equity awards
2,525 
 
2,525 
 
 
 
 
2,525 
 
Tax expense from share-based compensation
95 
 
95 
 
 
 
 
95 
 
Unrealized foreign currency translation adjustment
(5,827)
 
 
 
 
(5,827)
 
(5,827)
 
Unrealized gain (loss) on investments
75 
 
 
 
 
75 
 
75 
 
Amortization of net actuarial gain (loss)
894 
 
 
 
 
894 
 
894 
 
Amortization of prior service cost
(357)
 
 
 
 
(357)
 
(357)
 
Other, net
12 
 
(51)
(1)
63 
 
12 
 
Ending Balance at Dec. 31, 2016
370,638 
37,402 
573,841 
16,291 
172 
(39,391)
(230,960)
357,355 
13,283 
Increase (Decrease) in Stockholders' Equity [Roll Forward]
 
 
 
 
 
 
 
 
 
Net income
58,184 
 
 
 
 
 
 
 
 
Net income
58,230 
 
 
57,707 
 
 
 
57,707 
523 
Dividends on common stock ($0.40 per share)
(8,160)
 
 
(8,160)
 
 
 
(8,160)
 
Common stock purchased for treasury
(2,119)
 
 
 
 
 
(2,119)
(2,119)
 
Employee benefit plans
4,177 
 
(2,687)
 
 
 
6,864 
4,177 
 
Share-based compensation—equity awards
3,623 
 
3,623 
 
 
 
 
3,623 
 
Unrealized foreign currency translation adjustment
17,058 
 
 
 
 
17,058 
 
17,058 
 
Unrealized gain (loss) on investments
195 
 
 
 
 
195 
 
195 
 
Amortization of net actuarial gain (loss)
344 
 
 
 
 
344 
 
344 
 
Amortization of prior service cost
(774)
 
 
 
 
(774)
 
(774)
 
Other, net
(275)
 
(319)
(2)
46 
 
 
(275)
 
Ending Balance at Dec. 31, 2017
$ 442,937 
$ 37,402 
$ 574,458 
$ 65,836 
$ 218 
$ (22,568)
$ (226,215)
$ 429,131 
$ 13,806 
CONSOLIDATED STATEMENTS OF STOCKHOLDERS' EQUITY (Parenthetical)
12 Months Ended
Dec. 31, 2017
Dec. 31, 2016
Dec. 31, 2015
Statement Of Stockholders Equity [Abstract]
 
 
 
Dividends on common stock per share
$ 0.40 
$ 0.40 
$ 0.40 
CONSOLIDATED STATEMENTS OF CASH FLOWS (USD $)
In Thousands, unless otherwise specified
12 Months Ended
Dec. 31, 2017
Dec. 31, 2016
Dec. 31, 2015
Cash flows from operating activities
 
 
 
Net income
$ 58,184 
$ 42,795 
$ 27,048 
Adjustments to reconcile net income to net cash provided by operating activities:
 
 
 
Depreciation and amortization
55,114 
42,743 
35,231 
Deferred income taxes
26,049 
7,672 
469 
Loss from discontinued operations
268 
684 
394 
Restructuring charges
1,004 
5,183 
2,956 
Impairment charges (recoveries)
(29,098)
218 
96 
(Gains) losses on dispositions of property and other assets
1,420 
(54)
(690)
Share-based compensation expense
10,969 
8,038 
3,848 
Excess tax benefit from share-based compensation arrangements
 
(95)
(418)
Other non-cash items, net
5,029 
6,167 
5,394 
Change in operating assets and liabilities (excluding the impact of acquisitions):
 
 
 
Receivables
(2,338)
(9,358)
(16,665)
Inventories
2,505 
(2,646)
4,872 
Accounts payable
7,546 
1,770 
(2,619)
Restructuring liabilities
(1,954)
(3,866)
(2,572)
Accrued compensation
(5,152)
(353)
1,469 
Customer deposits
(10,572)
8,429 
408 
Income taxes payable
5,820 
(4,630)
67 
Other assets and liabilities, net
(12,571)
(2,379)
989 
Net cash provided by operating activities
112,223 
100,318 
60,277 
Cash flows from investing activities
 
 
 
Capital expenditures
(56,621)
(49,815)
(29,839)
Proceeds from insurance
31,570 
 
 
Cash paid for acquired businesses, net
(1,501)
(195,989)
(430)
Proceeds from dispositions of property and other assets
947 
1,166 
1,542 
Net cash used in investing activities
(25,605)
(244,638)
(28,727)
Cash flows from financing activities
 
 
 
Proceeds from borrowings
90,004 
229,701 
50,000 
Payments on debt and capital lease obligations
(135,801)
(108,915)
(62,969)
Dividends paid on common stock
(8,160)
(8,111)
(8,036)
Debt issuance costs
(5)
(336)
 
Common stock purchased for treasury
(2,119)
(722)
(4,816)
Excess tax benefit from share-based compensation arrangements
 
95 
418 
Acquisition of business - deferred consideration
 
(130)
(896)
Proceeds from exercise of stock options
 
 
1,041 
Net cash provided by (used in) financing activities
(56,081)
111,582 
(25,258)
Effect of exchange rate changes on cash and cash equivalents
2,286 
(2,893)
(6,751)
Net change in cash and cash equivalents
32,823 
(35,631)
(459)
Cash and cash equivalents, beginning of year
20,900 
56,531 
56,990 
Cash and cash equivalents, end of period
$ 53,723 
$ 20,900 
$ 56,531 
Overview and Summary of Significant Accounting Policies
Overview and Summary of Significant Accounting Policies

Note 1. Overview and Summary of Significant Accounting Policies

Basis of Presentation and Principles of Consolidation

The accompanying consolidated financial statements of Viad have been prepared in accordance with accounting principles generally accepted in the United States of America (“GAAP”) and include the accounts of Viad and its subsidiaries. All significant intercompany account balances and transactions have been eliminated in consolidation.

Nature of Business

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

GES

GES is a global, full-service provider for live events that produces exhibitions, conferences, corporate events, and consumer events. GES offers a comprehensive range of live event services and a full suite of audio-visual services from creative and technology to content and design, along with online tools powered by next generation technologies that help clients easily manage the complexities of their events.

GES’ clients include event organizers and corporate brand marketers. Event organizers schedule and run the event 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.

Pursuit

Pursuit is a collection of iconic natural and cultural destination travel experiences that enjoy perennial demand. Pursuit is comprised of four lines of business: Hospitality, Attractions, Transportation, and Travel Planning. These four lines of business work together, driving economies of scope and meaningful scale in and around the iconic destinations of Banff, Jasper, and Waterton Lakes National Parks and Vancouver in Canada, and Glacier, Denali, and Kenai Fjords National Parks in the United States. Pursuit is comprised of Brewster Travel Canada, which is marketed as the Banff Jasper Collection; the Alaska Collection; Glacier Park, Inc., which is marketed as the Glacier Park Collection, and FlyOver.

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 in the redemption value of redeemable noncontrolling interests; and allocation of purchase price of acquired businesses. Actual results could differ from these and other estimates.

Cash and Cash Equivalents

Cash equivalents are highly-liquid investments with remaining maturities when purchased of three months or less. Cash and cash equivalents consist of cash and bank demand deposits and money market mutual funds. Investments in money market mutual funds are classified as available-for-sale and carried at fair value.

Allowances for Doubtful Accounts

Allowances for doubtful accounts reflect the best estimate of probable losses inherent in the accounts receivable balance. The allowances for doubtful accounts, including a sales allowance for discounts at the time of sale, are based upon an evaluation of the aging of receivables, historical trends, and the current economic environment.

Inventories

Inventories, which consist primarily of exhibit design and construction materials and supplies, as well as deferred show costs, including labor, show purchases, and commissions used in providing convention show services, are stated at the lower of cost (first-in, first-out and specific identification methods) or net realizable value.

Property and Equipment

Property and equipment are stated at cost, net of accumulated depreciation. Property and equipment are depreciated using the straight-line method over the estimated useful lives of the assets: buildings, 15 to 40 years; equipment, 3 to 12 years; and leasehold improvements, over the shorter of the lease term or useful life. Property and equipment are tested for potential impairment whenever events or changes in circumstances indicate that the carrying amount of the long-lived asset may not be recoverable through undiscounted cash flows.

Capitalized Software

Certain internal and external costs incurred in developing or obtaining internal use software are capitalized. Capitalized costs principally relate to costs incurred to purchase software from third parties, external direct costs of materials and services, and certain payroll-related costs for employees directly associated with software projects once application development begins. Costs associated with preliminary project activities, training, and other post-implementation activities are expensed as incurred. Capitalized software costs are amortized using the straight-line method over the estimated useful lives of the software, ranging from three to ten years. These costs are included in the Consolidated Balance Sheets under the caption “Property and equipment, net.”

Goodwill

Goodwill is tested for impairment at the reporting unit level on an annual basis as of October 31, and between annual tests if an event occurs or circumstances change that would more-likely-than-not reduce the fair value of a reporting unit below its carrying value. We use a discounted expected future cash flow methodology (income approach) in order to estimate the fair value of our reporting units for purposes of goodwill impairment testing. The estimates and assumptions regarding expected future cash flows, discount rates, and terminal values require considerable judgment and are based on market conditions, financial forecasts, industry trends, and historical experience. These estimates, however, have inherent uncertainties and different assumptions could lead to materially different results.

Cash Surrender Value of Life Insurance

We have Company-owned life insurance contracts which are intended to fund the cost of certain employee compensation and benefit programs. These contracts are carried at cash surrender value, net of outstanding policy loans. The cash surrender value represents the amount of cash we could receive if the policies were discontinued before maturity. The changes in the cash surrender value of the policies, net of insurance premiums, are included as a component of “Costs of Services” in the Consolidated Statements of Operations.

Self-Insurance Liabilities

We are self-insured up to certain limits for workers’ compensation, automobile, product and general liability, property loss, and medical claims. We retained certain liabilities related to workers’ compensation and general liability insurance claims in conjunction with previously sold operations. Provisions for losses for claims incurred, including estimated claims incurred but not yet reported, are made based on historical experience, claims frequency, insurance coverage, and other factors. We purchased insurance for amounts in excess of the self-insured levels.

Environmental Remediation Liabilities

Environmental remediation liabilities represent the estimated cost of environmental remediation obligations primarily associated with previously sold operations. The amounts accrued primarily consist of the estimated direct incremental costs, on an undiscounted basis, for contractor and other services related to remedial actions and post-remediation site monitoring. Environmental remediation liabilities are recorded when the specific obligation is considered probable and the costs are reasonably estimable. Subsequent recoveries from third parties, if any, are recorded through discontinued operations when realized. Environmental insurance is maintained that provides coverage for new and undiscovered pre-existing conditions at both our continuing and discontinued operations.

Fair Value of Financial Instruments

The carrying value of cash and cash equivalents, receivables, and accounts payable approximate fair value due to the short-term maturities of these instruments. Refer to Note 11 – Debt and Capital Lease Obligations for the estimated fair value of debt obligations.

Non-redeemable Noncontrolling Interest and Redeemable Noncontrolling Interest

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

Noncontrolling interests with redemption features that are not solely within our control are considered redeemable noncontrolling interests. The Esja purchase 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 Consolidated Balance Sheets. The amount of the net income or loss attributable to redeemable noncontrolling interests is recorded to retained earnings and is included in our earnings per share. Refer to Note 21 – Redeemable Noncontrolling Interest for additional information.

Foreign Currency Translation

Our foreign operations are primarily in Canada, the United Kingdom, the Netherlands, Germany, and to a lesser extent, in certain other countries. The functional currency of our foreign subsidiaries is their local currency. Accordingly, for purposes of consolidation, we translate the assets and liabilities of our foreign subsidiaries into U.S. dollars at the foreign exchange rates in effect at the balance sheet date. The unrealized gains or losses resulting from the translation of these foreign denominated assets and liabilities are included as a component of accumulated other comprehensive income (loss) in the Consolidated Balance Sheets. For purposes of consolidation, revenue, expenses, gains, and losses related to our foreign operations are translated into U.S. dollars at the average foreign exchange rates for the period.

Revenue Recognition

Revenue is recognized when persuasive evidence of an arrangement exists, delivery has occurred or services have been rendered, the sales price is fixed or determinable, and collectability is reasonably assured. GES derives revenue primarily by providing core services, event technology services, and audio-visual services to event organizers and exhibitors participating in live events. GES derives revenue from consumer events by charging visitors to view the touring exhibitions. Exhibition and event service’s revenue is recognized when services are completed, net of commissions. Exhibits and environments revenue is accounted for using the completed-contract method. Pursuit generates revenue through its hospitality, attractions, transportation, and travel planning services. Pursuit’s revenue is recognized at the time services are performed.

Insurance Recoveries

Receipts from insurance up to the amount of the recognized losses are considered recoveries and are accounted for when they are probable of receipt. Anticipated proceeds in excess of the recognized loss are considered a gain contingency. A contingency gain for anticipated insurance proceeds in excess of losses already recognized is not recognized until all contingencies relating to the insurance claim have been resolved.

Insurance proceeds allocated to business interruption gains are reported as cash flows from operating activities, and proceeds allocated to impairment recoveries are reported as cash flows from investing activities. Insurance proceeds used for capitalizable costs are classified as cash flows from investing activities, and proceeds used for non-capitalizable costs are classified as operating activities.

On December 29, 2016, the Mount Royal Hotel was damaged by a fire and closed. During the fourth quarter of 2016, we recorded an asset impairment loss of $2.2 million and an offsetting impairment recovery (and related insurance receivable) as the losses related to the fire were covered by our property and business interruption insurance. During July 2017, we resolved our property and business interruption insurance claims for a total of $36.3 million. We allocated $2.2 million to an insurance receivable, $29.3 million was recorded as an impairment recovery (partially offset by impairment charges of $0.2 million) related to construction costs to re-open the hotel, $2.5 million was recorded as a business interruption gain for the recovery of lost profits, $1.3 million was recorded as contra-expense to offset non-capitalizable costs incurred, and the remaining $1.0 million was recorded as deferred revenue, which will be recognized over the periods when the business interruption losses are actually incurred.

Share-Based Compensation

Share-based compensation costs, related to all share-based payment awards, are recognized and measured using the fair value method of accounting. These awards generally include restricted stock, liability-based awards (including performance units and restricted stock units), and stock options, and contain forfeiture and non-compete provisions.

The fair value of restricted stock awards is based on our closing stock price on the date of grant. We issue restricted stock awards from shares held in treasury. Future vesting of restricted stock is generally subject to continued employment. Holders of restricted stock have the right to receive dividends and vote the shares, but may not sell, assign, transfer, pledge, or otherwise encumber the stock, except to the extent restrictions have lapsed and in accordance with our stock trading policy.

Restricted stock awards vest between three and five years from the date of grant. Share-based compensation expense related to restricted stock is recognized using the straight-line method over the requisite service period of approximately three years. For awards with a five-year vesting period, expense is recognized based on an accelerated multiple-award approach over a five-year period. For these awards, 40% of the shares vest on the third anniversary of the grant and the remaining shares vest in 30% increments over the subsequent two anniversary dates.

Liability-based awards (including performance units and restricted stock units) are recorded at estimated fair value, based on the number of units expected to vest and where applicable, the level of achievement of predefined performance goals. These awards are remeasured on each balance sheet date based on our stock price, and the Monte Carlo simulation model, until the time of settlement. A Monte Carlo simulation requires the use of a number of assumptions, including historical volatility and correlation of our stock price and the price of the common shares of a comparator group, a risk-free rate of return, and an expected term. To the extent earned, liability-based awards are settled in cash based on our stock price. Compensation expense related to liability-based awards is recognized ratably over the requisite service period of approximately three years.

Equity-based awards (including performance units) are recorded at estimated fair value, based on the number of units expected to vest and the level of achievement of predefined performance goals, until the time of settlement. To the extent earned, equity-based awards are settled in our common stock. Compensation expense related to equity-based awards is recognized ratably over the requisite service period of approximately three years.

The fair value of stock option grants is estimated on the date of grant using the Black-Scholes option pricing model. Share-based compensation expense related to stock option awards is recognized using the straight-line method over the requisite service period of approximately five years. The exercise price of stock options is based on the market value of our common stock at the date of grant. We have not granted stock options since 2010.

Common Stock in Treasury

Common stock purchased for treasury is recorded at historical cost. Subsequent share reissuances are primarily related to share-based compensation programs and recorded at weighted-average cost.

Income Per Common Share

We apply the two-class method in calculating income per common share as unvested share-based payment awards that contain nonforfeitable rights to dividends are considered participating securities. Accordingly, such securities are included in the earnings allocation in calculating income per share. The adjustment to the carrying value of the redeemable noncontrolling interest is reflected in income per common share.

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 2014-09, Revenue from Contracts with Customers (Topic 606)

 

The standard establishes a new recognition model that requires revenue to be recognized in a manner to depict the transfer of goods or services to a customer at an amount that reflects the consideration expected to be received in exchange for those goods or services. We may adopt either retrospectively to each prior period presented with the option to elect certain practical expedients or with the cumulative effect recognized at the date of initial application and providing certain disclosures.

 

Subsequent to the issuance of ASU 2014-09, the FASB issued several amendments in 2016 which do not change the core principle of the guidance stated in ASU 2014-09. Rather, they are intended to clarify and improve understanding of certain topics included within the revenue standard.

 

January 1, 2018

 

We assigned internal resources and engaged a third-party service provider to assist in evaluating the impact on our accounting policies, processes, and system requirements. Based on our assessment, the adoption of this standard will not have a material impact on our consolidated financial statements. The impact primarily relates to the deferral of certain commissions which were previously expensed as incurred but will generally be capitalized and amortized over the period of contract performance, and the deferral of certain costs incurred in connection with trade shows which were previously expensed as incurred but will generally be capitalized and expensed upon the completion of the show. We adopted the standard on January 1, 2018 and will be using the modified retrospective transition method. Additionally, the new guidance requires enhanced disclosures, including revenue recognition policies to identify performance obligations to customers and significant judgments in measurement and recognition.

ASU 2016-02, Leases (Topic 842)

 

The amendment requires lessees to recognize on their balance sheet a right-of-use asset and a lease liability for leases with lease terms greater than one year. The amendment requires additional disclosures about leasing arrangements, and requires a modified retrospective approach to adoption. Early adoption is permitted.

 

January 1, 2019

 

We are currently evaluating the potential impact the adoption of this new guidance will have on our financial position or results of operations including analyzing our existing operating leases. Based on our current assessment, the adoption of this standard will have a material impact on our Consolidated Balance Sheets, however the income statement is not expected to be materially impacted. We expect the most significant impact will relate to facility and equipment leases, which are currently recorded as operating leases. We are continuing our assessment, which may identify other impacts. We will adopt the standard on January 1, 2019.

ASU 2017-04, Intangibles - Goodwill and Other (Topic 350) - Simplifying the Test for Goodwill Impairment

 

The amendment eliminates the requirement to estimate the implied fair value of goodwill if it was determined that the carrying amount of a reporting unit exceeded its fair value. Goodwill impairment will now be recognized by the amount by which a reporting unit’s carrying value exceeds its fair value, not to exceed the carrying amount of goodwill. The amendment should be applied prospectively and is effective for annual or any interim goodwill impairment tests in fiscal years beginning after December 15, 2019. Early adoption is permitted for interim or annual goodwill impairment tests performed on testing dates after January 1, 2017.

 

January 1, 2020

 

The adoption of this new guidance is not expected to have a significant effect on our consolidated financial statements and we expect the adoption to reduce the complexity surrounding the analysis of goodwill impairment.

 

Standard

 

Description

 

Date of adoption

 

Effect on the financial statements

Standards Recently Adopted

ASU 2016-09, Compensation - Stock Compensation (Topic 718) - Improvements to Employee Share-Based Payment Accounting

 

The amendment identifies areas for simplification involving several aspects of accounting for share-based payment transactions, including the income tax consequences, classification of awards as either equity or liabilities, an option to recognize gross stock compensation expense with actual forfeitures recognized as they occur, as well as certain classifications on the statement of cash flows.

 

January 1, 2017

 

The adoption of this new guidance resulted in a decrease in tax expense of $1.1 million, or a 1.1% decrease in our effective tax rate, as compared to 2016.

 

Share-Based Compensation
Share-Based Compensation

Note 2. Share-Based Compensation

The following table summarizes share-based compensation expense:

 

 

Year Ended December 31,

 

(in thousands)

 

2017

 

 

2016

 

 

2015

 

Performance unit incentive plan (“PUP”)

 

$

8,088

 

 

$

5,703

 

 

$

1,692

 

Restricted stock

 

 

2,594

 

 

 

2,073

 

 

 

2,111

 

Restricted stock units

 

 

287

 

 

 

262

 

 

 

45

 

Share-based compensation before income tax benefit

 

 

10,969

 

 

 

8,038

 

 

 

3,848

 

Income tax benefit

 

 

(4,079

)

 

 

(2,988

)

 

 

(1,454

)

Share-based compensation, net of income tax benefit

 

$

6,890

 

 

$

5,050

 

 

$

2,394

 

We recorded share-based compensation expense through restructuring expense of $0.1 million during 2017, $0.2 million in 2016, and $45,000 in 2015. The 2017 and 2016 amounts relate to PUP and restricted stock units. The 2015 amount related to restricted stock units. No share-based compensation costs were capitalized during 2017, 2016, or 2015.

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, 2016

 

 

255,505

 

 

$

26.11

 

 

 

267,051

 

 

$

25.96

 

 

 

15,982

 

 

$

25.58

 

Granted

 

 

73,557

 

 

$

47.44

 

 

 

67,029

 

 

$

46.99

 

 

 

2,950

 

 

$

47.45

 

Vested

 

 

(76,082

)

 

$

24.07

 

 

 

(112,548

)

 

$

24.04

 

 

 

(6,182

)

 

$

24.97

 

Forfeited

 

 

(13,642

)

 

$

34.99

 

 

 

(14,633

)

 

$

35.31

 

 

 

 

 

$

 

Balance at December 31, 2017

 

 

239,338

 

 

$

32.80

 

 

 

206,899

 

 

$

33.16

 

 

 

12,750

 

 

$

30.94

 

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 was approved by our stockholders and was effective May 18, 2017. The 2017 Plan replaced the 2007 Viad Corp Omnibus Stock Plan (the “2007 Plan”). No further awards may be made under the 2007 Plan, although awards previously granted under the 2007 Plan will remain outstanding in accordance with their respective terms. 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 December 31, 2017, there were 1,744,546 shares available for future grant under the 2017 Plan.

PUP Awards

In February 2016, the PUP Plan was amended to provide that PUP awards earned under the 2007 Plan may be payable in the form of cash or in shares of our common stock (or a combination of both). Previously, payouts could only be made in cash. The vesting of shares is based upon achievement of certain performance-based criteria. The performance period of the shares is three years.

During the year ended December 31, 2017, we granted $3.5 million PUP awards of which $1.4 million are payable in shares. Liabilities related to PUP awards were $11.0 million as of December 31, 2017 and $7.6 million as of December 31, 2016. In March 2017, PUP awards granted in 2014 vested and we distributed cash payouts of $3.7 million. In March 2016, PUP awards granted in 2013 vested and we distributed cash payouts of $0.2 million. In March 2015, PUP awards granted in 2012 vested and we distributed cash payouts of $2.4 million.

Restricted Stock

The grant date fair value of vested restricted stock was $2.7 million in 2017, $2.0 million in 2016, and $2.2 million in 2015. As of December 31, 2017, the unamortized cost of outstanding restricted stock awards was $2.5 million, which we expect to recognize over a weighted-average period of approximately 1.2 years. We repurchased 41,532 shares for $2.1 million in 2017 and 25,432 shares for $0.7 million in 2016 related to tax withholding requirements on vested share-based awards. During 2015, we repurchased 141,462 shares on the open market for $3.8 million and 35,649 shares for $1.0 million related to tax withholding requirements on vested share-based awards.

Restricted Stock Units

Aggregate liabilities related to restricted stock units was $0.5 million as of December 31, 2017 and $0.4 million as of December 31, 2016. In February 2017, portions of the 2012 and 2014 restricted stock units vested and we distributed cash payouts of $0.3 million. In February 2016, portions of the 2011, 2012, and 2013 restricted stock units vested and we distributed cash payouts of $0.2 million. In February 2015, portions of the 2010, 2011, and 2012 restricted stock units vested and we distributed cash payouts of $0.3 million.

Stock Options

During the year ended December 31, 2017, there was no stock option activity. As of both December 31, 2017 and 2016, there were 63,773 stock options outstanding and exercisable with a weighted-average exercise price of $16.62 and a weighted-average remaining contractual life of 2 years. As of December 31, 2017, there were no unrecognized costs related to non-vested stock option awards.

The following table provides additional stock option information:

 

 

December 31,

 

(in thousands)

 

2017

 

 

2016

 

 

2015

 

Total intrinsic value of stock options outstanding(1)

 

$

2,473

 

 

$

1,753

 

 

$

740

 

Total intrinsic value of stock options exercised

 

$

 

 

$

 

 

$

1,474

 

Cash received from the exercise of stock options

 

$

 

 

$

 

 

$

898

 

Tax benefits realized for tax deductions related to stock option exercises

 

$

 

 

$

 

 

$

104

 

(1)

The intrinsic value of stock options outstanding represents the difference between our closing stock price on December 31 of each year and the exercise price, multiplied by the number of in-the-money stock options.

Acquisition of Businesses
Acquisition of Businesses

Note 3. Acquisition of Businesses

2017 Acquisitions

Poken

In March 2017, we acquired Poken event engagement technology for total cash consideration of $1.7 million. Transaction costs associated with the acquisition of Poken were $0.3 million in 2017, which are included in cost of services in the Consolidated Statements of Operations. These assets have been included in the consolidated financial statements from the date of acquisition.

Esja

On November 3, 2017, we acquired the controlling interest (54.5% of the common stock) in Esja, a private corporation in Reykjavik, Iceland. Esja is developing and will operate a new FlyOver Iceland attraction, which is expected to open in 2019. The purchase price was €8.2 million (approximately $9.5 million) in cash, which included 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. The noncontrolling interest’s carrying value is determined by the fair value of the noncontrolling interest as of the acquisition date, the noncontrolling interests’ share of the subsequent net income or loss, and the accretion of the redemption value of the put option. As of the transaction date, the fair value of the noncontrolling interest was estimated to be $6.7 million. Due to the recent timing of the acquisition, the fair value of the noncontrolling interest is not yet finalized and is subject to change within the measurement period (up to one year from the acquisition date). Refer to Note 21 – Redeemable Noncontrolling Interest for additional information.

Under the acquisition method of accounting, the purchase price is allocated to the assets acquired and liabilities assumed based on their estimated fair values. The excess purchase price over fair value of net assets acquired is recorded as goodwill. Goodwill is included in the Pursuit business group and the primary factor that contributed to the purchase price resulting in the recognition of goodwill relates to future income from operations after opening in 2019. Transaction costs associated with the acquisition of Esja were $0.1 million in 2017, which are included in cost of services in the Consolidated Statements of Operations.

The results of operations of Esja have been included in the consolidated financial statements from the date of acquisition. During 2017, Esja had an operating loss of $0.1 million.

2016 Acquisitions

Maligne Lake Tours

On January 4, 2016, we acquired the assets and operations of Maligne Tours Ltd. (“Maligne Lake Tours”), which provides interpretive boat tours and related services at Maligne Lake, the largest lake in Jasper National Park. The purchase price was $20.9 million Canadian dollars (approximately $15.0 million U.S. dollars) in cash.

Transaction costs associated with the Maligne Lake Tours acquisition were $0.1 million in 2017 and $0.1 million in 2016, which are included in cost of services in the Consolidated Statements of Operations and $0.2 million in 2015, which are included in corporate activities in the Consolidated Statements of Operations. The results of operations of Maligne Lake Tours have been included in the consolidated financial statements from the date of acquisition.

CATC

On March 11, 2016, we acquired 100% of the equity interests in CATC Alaska Tourism Corporation (“CATC”), the operator of an Alaskan tourism business that includes a marine sightseeing tour business, three lodges, and a package tour business. The purchase price was $45.0 million in cash.

Transaction costs associated with the CATC acquisition were $0.1 million in 2017, $0.1 million in 2016, and $0.6 million in 2015, which are included in corporate activities in the Consolidated Statements of Operations. The results of operations of CATC have been included in the consolidated financial statements from the date of acquisition.

ON Services

On August 11, 2016, we acquired the assets and operations of ON Event Services, LLC (“ON Services”), a leading provider of audio-visual production services for live events in the United States. The aggregate purchase price was up to $92.5 million in cash, which included an earnout payment (the “Earnout”) of up to $5.5 million. The fair value of the Earnout was valued on the date of acquisition and was remeasured based on the financial performance of ON Services for 2016. As of the transaction date, the fair value of the Earnout was estimated to be $540,000.

Transaction costs associated with the ON Services acquisition were $0.1 million in 2017 and $0.9 million in 2016, which are included in corporate activities in the Consolidated Statement of Operations. The results of operations of ON Services have been included in the consolidated financial statements from the date of acquisition.

FlyOver Canada

On December 29, 2016, we acquired the assets and operations of FlyOver Canada, a recreational attraction that provides a virtual flight ride experience with a combination of motion seating, spectacular media, and visual effects including wind, scents, and mist. The purchase price was $68.8 million Canadian dollars (approximately $50.9 million U.S. dollars) in cash.

Transaction costs associated with the FlyOver Canada acquisition were $0.1 million in 2017 and $0.5 million in 2016, which are included in cost of services in the Consolidated Statements of Operations. The results of operations of FlyOver Canada have been included in the consolidated financial statements from the date of acquisition.

The following table summarizes the final allocation of the aggregate purchase price paid and amounts of assets acquired and liabilities assumed based upon the estimated fair value at the date of acquisitions. The balances in the table below remain unchanged from the balances reflected in the Consolidated Balance Sheets in our Annual Report on Form 10-K for the year ended December 31, 2016.

 

 

 

Maligne Lake Tours

 

 

CATC

 

 

ON Services

 

 

FlyOver Canada

 

(in thousands)

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Purchase price paid as:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Cash

 

$

14,962

 

 

$

45,000

 

 

$

87,000

 

 

$

50,920

 

Working capital adjustment

 

 

 

 

 

(35

)

 

 

344

 

 

 

 

Contingent consideration

 

 

 

 

 

 

 

 

540

 

 

 

 

Cash acquired

 

 

 

 

 

(2,196

)

 

 

 

 

 

(6

)

Total purchase price, net of cash acquired

 

 

14,962

 

 

 

42,769

 

 

 

87,884

 

 

 

50,914

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Fair value of net assets acquired:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Accounts receivable

 

 

 

 

 

8

 

 

 

4,643

 

 

 

 

Inventories

 

 

246

 

 

 

921

 

 

 

256

 

 

 

11

 

Prepaid expenses

 

 

2

 

 

 

82

 

 

 

872

 

 

 

37

 

Property and equipment

 

 

4,133

 

 

 

43,470

 

 

 

14,827

 

 

 

10,867

 

Intangible assets

 

 

9,244

 

 

 

980

 

 

 

33,990

 

 

 

6,028

 

Total assets acquired

 

 

13,625

 

 

 

45,461

 

 

 

54,588

 

 

 

16,943

 

Accounts payable

 

 

 

 

 

306

 

 

 

992

 

 

 

 

Accrued liabilities

 

 

 

 

 

434

 

 

 

564

 

 

 

118

 

Customer deposits

 

 

15

 

 

 

1,952

 

 

 

851

 

 

 

 

Other liabilities

 

 

240

 

 

 

 

 

 

274

 

 

 

 

Total liabilities acquired

 

 

255

 

 

 

2,692

 

 

 

2,681

 

 

 

118

 

Total fair value of net assets acquired

 

 

13,370

 

 

 

42,769

 

 

 

51,907

 

 

 

16,825

 

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

 

$

1,592

 

 

$

 

 

$

35,977

 

 

$

34,089

 

Under the acquisition method of accounting, the purchase prices as shown in the table above are allocated to the tangible and identifiable intangible assets acquired and liabilities assumed based on their estimated fair values. The excess purchase price over fair value of net assets acquired is recorded as goodwill. Goodwill is included in the Pursuit business group for Maligne Lake Tours and FlyOver Canada and in the GES business group for ON Services. The primary factor that contributed to the purchase price resulting in the recognition of goodwill relates to future growth opportunities, and the expansion of the FlyOver concept for FlyOver Canada, when combined with our other businesses. All goodwill is deductible for tax purposes pursuant to Canadian tax regulations for Maligne Lake Tours and FlyOver Canada and over a period of 15 years for ON Services. The estimated values of current assets and liabilities were based upon their historical costs on the date of acquisition due to their short-term nature.

Following are the details of the purchase price allocated to the intangible assets acquired for the 2016 Acquisitions:

(in thousands, except weighted average life)

 

Maligne Lake Tours

 

 

CATC

 

 

ON Services

 

 

FlyOver Canada

 

Customer relationships

 

$

788

 

 

$

780

 

 

$

27,620

 

 

$

1,592

 

Operating licenses

 

 

8,313

 

 

 

 

 

 

 

 

 

 

Trade name

 

 

143

 

 

 

200

 

 

 

3,190

 

 

 

3,710

 

Non-compete agreements

 

 

 

 

 

 

 

 

3,180

 

 

 

726

 

Fair value of intangible assets acquired

 

$

9,244

 

 

$

980

 

 

$

33,990

 

 

$

6,028

 

Weighted average life

 

26.7 years(1)

 

 

5.8 years

 

 

10.5 years

 

 

9.4 years

 

(1)

Largely attributable to operating licenses amortized over the remaining Parks Canada lease of 29 years.

Supplementary pro forma financial information

The following table summarizes our unaudited pro forma results of operations assuming the 2016 Acquisitions had each been completed on January 1, 2015:

 

 

Year Ended December 31,

 

(in thousands, except per share data)

 

2016

 

 

2015

 

Revenue

 

$

1,250,290

 

 

$

1,183,656

 

Depreciation and amortization

 

$

52,074

 

 

$

52,631

 

Income from continuing operations

 

$

43,727

 

 

$

27,881

 

Net income attributable to Viad

 

$

42,517

 

 

$

27,045

 

Diluted income per share

 

$

2.10

 

 

$

1.35

 

Basic income per share

 

$

2.10

 

 

$

1.35

 

 

 

Inventories
Inventories

Note 4. Inventories

The components of inventories consisted of the following:

 

 

 

December 31,

 

(in thousands)

 

2017

 

 

2016

 

Raw materials

 

$

17,550

 

 

$

16,846

 

Work in process

 

 

12,822

 

 

 

14,574

 

Inventories

 

$

30,372

 

 

$

31,420

 

 

Other Current Assets
Other Current Assets

Note 5. Other Current Assets

Other current assets consisted of the following:

 

 

December 31,

 

(in thousands)

 

2017

 

 

2016

 

Prepaid vendor payments

 

$

5,048

 

 

$

3,633

 

Income tax receivable

 

 

4,237

 

 

 

3,614

 

Prepaid software maintenance

 

 

3,386

 

 

 

2,804

 

Prepaid insurance

 

 

2,610

 

 

 

2,479

 

Prepaid taxes

 

 

912

 

 

 

850

 

Prepaid rent

 

 

730

 

 

 

327

 

Prepaid other

 

 

2,172

 

 

 

731

 

Other

 

 

1,935

 

 

 

4,011

 

Other current assets

 

$

21,030

 

 

$

18,449

 

 

Property and Equipment
Property and Equipment

Note 6. Property and Equipment

Property and equipment consisted of the following:

 

 

 

December 31,

 

(in thousands)

 

2017

 

 

2016

 

Land and land interests(1)

 

$

32,544

 

 

$

31,670

 

Buildings and leasehold improvements

 

 

222,118

 

 

 

185,987

 

Equipment and other(2)

 

 

351,676

 

 

 

326,868

 

Gross property and equipment

 

 

606,338

 

 

 

544,525

 

Accumulated depreciation

 

 

(300,767

)

 

 

(264,667

)

Property and equipment, net

 

$

305,571

 

 

$

279,858

 

(1)

Land and land interests include certain leasehold interests in land within Pursuit for which we are considered to have perpetual use rights. The carrying amount of these leasehold interests was $8.4 million as of December 31, 2017 and $7.9 million as of December 31, 2016. These land interests are not subject to amortization.

(2)

Equipment and other includes capitalized costs incurred in developing or obtaining internal and external use software. The net carrying amount of capitalized software was $10.1 million as of December 31, 2017 and $11.9 million as of December 31, 2016.

Depreciation expense was $42.7 million for 2017, $33.6 million for 2016, and $28.1 million for 2015.

Non-cash increases to property and equipment related to assets acquired under capital leases were $2.5 million for 2017, $1.2 million for 2016, and $1.0 million for 2015. Non-cash increases to property and equipment purchases in accounts payable and accrued liabilities were $2.3 million for 2017, $0.9 million for 2016, and $2.3 million for 2015.

On December 29, 2016, the Mount Royal Hotel in Banff, Canada was damaged by a fire and closed. As a result of the fire, we recorded an impairment loss of $2.2 million against the net book value of the hotel assets. During 2017, we resolved our property and business interruption insurance claims related to the fire for a total of $36.3 million of which $29.3 million was recorded as an impairment recovery (partially offset by impairment charges of $0.2 million) related to construction costs to re-open the hotel.

During 2016, we recorded impairment charges of $0.2 million related to the write-down of certain software and buses in Pursuit. During 2015, we recorded impairment charges of $0.1 million related to the write-off of certain software in Pursuit. Impairment charges (recoveries) are included in the Consolidated Statements of Operations.

Other Investments and Assets
Other Investments and Assets

Note 7. Other Investments and Assets

Other investments and assets consisted of the following:

 

 

December 31,

 

(in thousands)

 

2017

 

 

2016

 

Cash surrender value of life insurance

 

$

23,947

 

 

$

23,197

 

Self-insured liability receivable

 

 

10,442

 

 

 

10,463

 

Workers’ compensation insurance security deposits

 

 

3,550

 

 

 

4,050

 

Other mutual funds

 

 

2,637

 

 

 

2,062

 

Other

 

 

6,936

 

 

 

4,525

 

Other investments and assets

 

$

47,512

 

 

$

44,297

 

 

 

Goodwill and Other Intangible Assets
Goodwill and Other Intangible Assets

Note 8. Goodwill and Other Intangible Assets

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

(in thousands)

 

GES U.S.

 

 

GES International

 

 

Pursuit

 

 

Total

 

Balance at December 31, 2015

 

$

112,300

 

 

$

38,635

 

 

$

34,288

 

 

$

185,223

 

Business acquisitions

 

 

35,977

 

 

 

 

 

 

35,681

 

 

 

71,658

 

Foreign currency translation adjustments

 

 

 

 

 

(4,175

)

 

 

1,316

 

 

 

(2,859

)

Balance at December 31, 2016

 

 

148,277

 

 

 

34,460

 

 

 

71,285

 

 

 

254,022

 

Business acquisitions

 

 

 

 

 

1,060

 

 

 

7,094

 

 

 

8,154

 

Foreign currency translation adjustments

 

 

 

 

 

3,320

 

 

 

5,055

 

 

 

8,375

 

Balance at December 31, 2017

 

$

148,277

 

 

$

38,840

 

 

$

83,434

 

 

$

270,551

 

The following table summarizes goodwill by reporting unit and segment:

 

 

December 31,

 

(in thousands)

 

2017

 

 

2016

 

GES:

 

 

 

 

 

 

 

 

U.S.

 

$

148,277

 

 

$

148,277

 

International:

 

 

 

 

 

 

 

 

GES EMEA

 

 

31,612

 

 

 

27,694

 

GES Canada

 

 

7,228

 

 

 

6,766

 

Total GES

 

 

187,117

 

 

 

182,737

 

Pursuit:

 

 

 

 

 

 

 

 

Banff Jasper Collection

 

 

35,305

 

 

 

32,587

 

Alaska Collection

 

 

3,184

 

 

 

3,184

 

Glacier Park Collection

 

 

1,268

 

 

 

1,268

 

FlyOver

 

 

43,677

 

 

 

34,246

 

Total Pursuit

 

 

83,434

 

 

 

71,285

 

Total Goodwill

 

$

270,551

 

 

$

254,022

 

Goodwill is tested for impairment at the reporting unit level on an annual basis as of October 31, and between annual tests if an event occurs or circumstances change that would more-likely-than-not reduce the fair value of a reporting unit below its carrying value.

GES U.S. goodwill is assigned to, and tested at, the operating segment level. GES International goodwill is assigned to and tested based on the segment’s geographical operations (GES Europe, Middle East, and Asia (“GES EMEA”) and GES Canada). Pursuit’s impairment testing is performed at the reporting unit level (Banff Jasper Collection, the Alaska Collection, Glacier Park Collection, and FlyOver).

As a result of our most recent impairment analysis performed as of October 31, 2017, the excess of the estimated fair value over the carrying value for each of our reporting units (expressed as a percentage of the carrying amounts) under step one of the impairment test for GES U.S. was 134%, GES EMEA was 214%, GES Canada was 164%, the Banff Jasper Collection was 147%, the Alaska Collection was 99%, the Glacier Park Collection was 16%, and FlyOver was 29%.

Our accumulated goodwill impairment as of both December 31, 2017 and 2016 was $229.7 million.

Other intangible assets consisted of the following:

 

 

December 31, 2017

 

 

December 31, 2016

 

(in thousands)

 

Gross Carrying

Value

 

 

Accumulated

Amortization

 

 

Net Carrying Value

 

 

Gross Carrying

Value

 

 

Accumulated

Amortization

 

 

Net Carrying Value

 

Amortized intangible assets:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Customer contracts and relationships

 

$

68,798

 

 

$

(23,696

)

 

$

45,102

 

 

$

67,762

 

 

$

(14,345

)

 

$

53,417

 

Operating contracts and licenses

 

 

9,951

 

 

 

(1,094

)

 

 

8,857

 

 

 

9,315

 

 

 

(652

)

 

 

8,663

 

Tradenames

 

 

8,633

 

 

 

(2,873

)

 

 

5,760

 

 

 

8,324

 

 

 

(1,440

)

 

 

6,884

 

Non-compete agreements

 

 

5,363

 

 

 

(3,007

)

 

 

2,356

 

 

 

5,190

 

 

 

(1,369

)

 

 

3,821

 

Other

 

 

896

 

 

 

(650

)

 

 

246

 

 

 

886

 

 

 

(458

)

 

 

428

 

Total amortized intangible assets

 

 

93,641

 

 

 

(31,320

)

 

 

62,321

 

 

 

91,477

 

 

 

(18,264

)

 

 

73,213

 

Unamortized intangible assets:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Business licenses

 

 

460

 

 

 

 

 

 

460

 

 

 

460

 

 

 

 

 

 

460

 

Other intangible assets

 

$

94,101

 

 

$

(31,320

)

 

$

62,781

 

 

$

91,937

 

 

$

(18,264

)

 

$

73,673

 

Intangible asset amortization expense was $12.4 million during 2017, $9.2 million during 2016, and $7.2 million during 2015. The weighted-average amortization period of customer contracts and relationships is approximately 8.5 years, operating contracts and licenses is approximately 26.3 years, tradenames is approximately 7.0 years, non-compete agreements is approximately 2.2 years, and other amortizable intangible assets is approximately 2.2 years. The estimated future amortization expense related to amortized intangible assets held at December 31, 2017 is as follows:

 

(in thousands)

 

 

 

 

Year ending December 31,

 

 

 

 

2018

 

$

11,013

 

2019

 

 

9,945

 

2020

 

 

8,444

 

2021

 

 

7,447

 

2022

 

 

5,895

 

Thereafter

 

 

19,577

 

Total

 

$

62,321

 

 

Other Current Liabilities
Other Current Liabilities

Note 9. Other Current Liabilities

Other current liabilities consisted of the following:

 

 

 

December 31,

 

(in thousands)

 

2017

 

 

2016

 

Continuing operations:

 

 

 

 

 

 

 

 

Accrued income tax payable

 

$

7,518

 

 

$

758

 

Self-insured liability accrual

 

 

6,208

 

 

 

5,941

 

Commissions payable

 

 

3,235

 

 

 

639

 

Accrued employee benefit costs

 

 

2,915

 

 

 

2,624

 

Accrued sales and use taxes

 

 

2,431

 

 

 

4,279

 

Accrued dividends

 

 

2,094

 

 

 

2,119

 

Current portion of pension and postretirement liabilities

 

 

2,109

 

 

 

1,963

 

Deferred rent

 

 

1,679

 

 

 

1,535

 

Accrued rebates

 

 

1,106

 

 

 

1,078

 

Accrued professional fees

 

 

1,020

 

 

 

794

 

Accrued restructuring

 

 

722

 

 

 

1,924

 

Other taxes

 

 

2,750

 

 

 

4,210

 

Other

 

 

3,852

 

 

 

1,774

 

Total continuing operations

 

 

37,639

 

 

 

29,638

 

Discontinued operations:

 

 

 

 

 

 

 

 

Environmental remediation liabilities

 

 

648

 

 

 

492

 

Self-insured liability accrual

 

 

337

 

 

 

162

 

Other

 

 

96

 

 

 

98

 

Total discontinued operations

 

 

1,081

 

 

 

752

 

Total other current liabilities

 

$

38,720

 

 

$

30,390

 

 

Other Deferred Items and Liabilities
Other Deferred Items and Liabilities

Note 10. Other Deferred Items and Liabilities

Other deferred items and liabilities consisted of the following:

 

 

December 31,

 

(in thousands)

 

2017

 

 

2016

 

Continuing operations:

 

 

 

 

 

 

 

 

Self-insured liability

 

$

12,918

 

 

$

12,981

 

Self-insured excess liability

 

 

10,442

 

 

 

10,463

 

Accrued compensation

 

 

9,740

 

 

 

8,514

 

Foreign deferred tax liability

 

 

8,267

 

 

 

2,264

 

Deferred rent

 

 

3,855

 

 

 

5,271

 

Accrued restructuring

 

 

1,827

 

 

 

1,858

 

Other

 

 

1,305

 

 

 

1,300

 

Total continuing operations

 

 

48,354

 

 

 

42,651

 

Discontinued operations:

 

 

 

 

 

 

 

 

Self-insured liability

 

 

2,557

 

 

 

3,748

 

Environmental remediation liabilities

 

 

1,728

 

 

 

3,091

 

Accrued income taxes

 

 

 

 

 

1,045

 

Other

 

 

219

 

 

 

199

 

Total discontinued operations

 

 

4,504

 

 

 

8,083

 

Total other deferred items and liabilities

 

$

52,858

 

 

$

50,734

 

 

Debt and Capital Lease Obligations
Debt and Capital Lease Obligations

Note 11. Debt and Capital Lease Obligations

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

 

 

December 31,

 

(in thousands, except interest rates)

 

2017

 

 

2016

 

Revolving credit facility and term loan, 3.1% weighted-average interest rate at

  December 31, 2017 and 2.6% at December 31, 2016, due through 2019 (1)

 

$

207,322

 

 

$

212,750

 

Brewster Inc. revolving credit facility, 2.7% weighted-average interest rate at

  December 31, 2016 (1)

 

 

 

 

 

36,456

 

Less unamortized debt issuance costs

 

 

(984

)

 

 

(1,464

)

Total debt

 

 

206,338

 

 

 

247,742

 

Capital lease obligations, 3.8% weighted-average interest rate at December 31,

  2017 and 4.9% at December 31, 2016, due through 2021

 

 

2,854

 

 

 

1,469

 

Total debt and capital lease obligations

 

 

209,192

 

 

 

249,211

 

Current portion (2)

 

 

(152,599

)

 

 

(174,968

)

Long-term debt and capital lease obligations

 

$

56,593

 

 

$

74,243

 

(1)

Represents the weighted-average interest rate in effect at the respective periods for the revolving credit facilities and term loan borrowings, including any applicable margin. The interest rates do not include amortization of debt issuance costs or commitment fees.

(2)

Borrowings under the revolving credit facilities are classified as current because all borrowed amounts are due within one year.

Effective December 22, 2014, we entered into a $300 million Amended and Restated Credit Agreement (the “Credit Agreement”). The Credit Agreement provides for a senior credit facility in the aggregate amount of $300 million, which consists of a $175 million revolving credit facility (the “Revolving Credit Facility”) and a $125 million term loan (the “Term Loan”). The Credit Agreement has a maturity date of December 22, 2019. Proceeds from the loans made under the Credit Agreement were used to refinance certain of our outstanding debt and will be used for general corporate purposes in the ordinary course of business. Under the Credit Agreement, either or both of the Revolving Credit Facility and the Term Loan may be increased up to an additional $100 million under certain circumstances. If such circumstances are met, we may obtain the additional borrowings under the Revolving Credit Facility, the Term Loan, or a combination of the two. The Revolving Credit Facility has a $40 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 Credit Agreement have a first perfected security interest in all of our personal property including GES, GES Event Intelligence Services, Inc., CATC, and ON Services, and 65% of the capital stock of our top-tier foreign subsidiaries.

Effective February 24, 2016, we executed an amendment (“Amendment No. 1”) to the Credit Agreement. Amendment No. 1 modified the terms of the financial covenants and the negative covenants related to acquisitions, restricted payments, and indebtedness. The overall maximum leverage ratio and minimum fixed charge coverage ratio are 3.50 to 1.00 and 1.75 to 1.00, respectively, and will remain at those levels for the entire remaining term of the Credit Agreement. Acquisitions in substantially the same or related lines of business are permitted under Amendment No. 1, as long as the pro forma leverage ratio is less than or equal to 3.00 to 1.00. We can make dividends, distributions, and repurchases of our common stock up to $20 million per calendar year. Stock dividends, distributions, and repurchases above the $20 million limit are not subject to a liquidity covenant, and are permitted as long as our pro forma leverage ratio is less than or equal to 2.50 to 1.00 and no default or unmatured default, as defined in the Credit Agreement, exists. Unsecured debt is allowed as long as our pro forma leverage ratio is less than or equal to 3.00 to 1.00. Significant other covenants under the Credit Agreement that were not affected by Amendment No. 1 include limitations on investments, sales/leases of assets, consolidations or mergers, and liens on property. As of December 31, 2017, the fixed charge coverage ratio was 3.10 to 1.00, the leverage ratio was 1.45 to 1.00, and we were in compliance with all covenants under the Credit Agreement.

Effective December 28, 2016, Brewster Inc., part of Pursuit, entered into a credit agreement (the “Brewster Credit Agreement”) with a $38 million revolving credit facility (the “Brewster Revolver”). The Brewster Credit Agreement was used in connection with the FlyOver Canada acquisition. Effective December 6, 2017, we amended the Brewster Revolver to reduce the amount to $20 million and extend the maturity date to December 28, 2018. Additional loan proceeds will be used for potential future acquisitions in Canada and other general corporate purposes of Brewster Inc. The lender under the Brewster Revolver has a first perfected security interest in all of Brewster Inc.’s personal property and a guaranty from Brewster Inc.’s immediate parent, Brewster Travel Canada Inc. (secured by its present and future personal property), Viad, and all of its current or future subsidiaries that are required to be guarantors under Viad’s Credit Agreement. The fees on the unused portion of the Brewster Revolver are currently 0.2% annually.

As of December 31, 2017, our total debt and capital lease obligations were $209.2 million, consisting of outstanding borrowings under the Term Loan of $75.0 million, the Revolving Credit Facility of $132.3 million, and capital lease obligations of $2.9 million, offset in part by unamortized debt issuance costs of $1.0 million. As of December 31, 2017, capacity remaining under the Revolving Credit Facility was $41.4 million, reflecting borrowings of $132.3 million and $1.3 million in outstanding letters of credit. As of December 31, 2017, Brewster Inc. had $20 million of capacity remaining under the Brewster Revolver.

Borrowings under the Revolving 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, plus appropriate spreads tied to our leverage ratio. Commitment fees and letters of credit fees are also tied to our leverage ratio. The fees on the unused portion of the Revolving Credit Facility are currently 0.3% annually.

As of December 31, 2017, on behalf of our subsidiaries, we had certain obligations under guarantees to third parties. These guarantees are not subject to liability recognition in the 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 December 31, 2017 would be $19.3 million. These guarantees relate to facilities leased through October 2027. 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 whereby we could recover payments.

Aggregate annual maturities of long-term debt and capital lease obligations as of December 31, 2017 are as follows:

 

(in thousands)

 

Revolving Credit

Agreement

 

 

Capital Lease

Obligations

 

Year ending December 31,

 

 

 

 

 

 

 

 

2018

 

$

151,072

 

 

$

1,601

 

2019

 

 

56,250

 

 

 

899

 

2020

 

 

 

 

 

454

 

2021

 

 

 

 

 

17

 

2022

 

 

 

 

 

 

Total

 

$

207,322

 

 

$

2,971

 

Less: Amount representing interest

 

 

 

 

 

 

(117

)

Present value of minimum lease payments

 

 

 

 

 

$

2,854

 

As of December 31, 2017, the gross amount of assets recorded under capital leases was $4.8 million and accumulated amortization was $2.0 million. As of December 31, 2016, the gross amount of assets recorded under capital leases was $3.3 million and accumulated amortization was $1.7 million. The amortization charges related to assets recorded under capital leases are included in depreciation expense. Refer to Note 6 – Property and Equipment.

The weighted-average interest rate on total debt (including amortization of debt issuance costs and commitment fees) was 3.7% for 2017, 3.1% for 2016 and 3.2% for 2015. The estimated fair value of total debt was $203.2 million as of December 31, 2017 and $252.8 million as of December 31, 2016. The fair value of debt was estimated by discounting the future cash flows using rates currently available for debt of similar terms and maturity.

Cash paid for interest on debt was $7.7 million for 2017, $5.5 million for 2016, and $4.2 million for 2015.

Fair Value Measurements
Fair Value Measurements

Note 12. Fair Value Measurements

The fair value of an asset or liability is defined as the price that would be received to sell an asset or paid 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)

 

December 31, 2017

 

 

Quoted Prices in

Active

Markets

(Level 1)

 

 

Significant

Other

Observable

Inputs

(Level 2)

 

 

Significant

Unobservable

Inputs

(Level 3)

 

Assets:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Money market funds(1)

 

$

119

 

 

$

119

 

 

$

 

 

$

 

Other mutual funds(2)

 

 

2,637

 

 

 

2,637

 

 

 

 

 

 

 

Total assets at fair value on a recurring basis

 

$

2,756

 

 

$

2,756

 

 

$

 

 

$

 

 

 

 

 

 

 

 

Fair Value Measurements at Reporting Date Using

 

(in thousands)

 

December 31, 2016

 

 

Quoted Prices

in Active

Markets

(Level 1)

 

 

Significant

Other

Observable

Inputs

(Level 2)

 

 

Significant

Unobservable

Inputs

(Level 3)

 

Assets:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Money market funds(1)

 

$

118

 

 

$

118

 

 

$

 

 

$

 

Other mutual funds(2)

 

 

2,062

 

 

 

2,062

 

 

 

 

 

 

 

Total assets at fair value on a recurring basis

 

$

2,180

 

 

$

2,180

 

 

$

 

 

$

 

(1)

Money market funds are included in “Cash and cash equivalents” in the 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 Consolidated Balance Sheets. These investments are classified as available-for-sale and are recorded at fair value. Unrealized gains of $1.0 million ($0.6 million after-tax) as of December 31, 2017 and $0.7 million ($0.4 million after tax) as of December 31, 2016 are included in “Accumulated other comprehensive income (loss)” (“AOCI”) in the 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 11 – Debt and Capital Lease Obligations for the estimated fair value of debt obligations.

Income Per Share
Income Per Share

Note 13. Income Per Share

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

 

 

 

 

 

 

Year Ended December 31,

 

(in thousands, except per share data)

 

2017

 

 

2016

 

 

2015

 

Net income attributable to Viad (diluted)

 

$

57,707

 

 

$

42,269

 

 

$

26,606

 

Less: Allocation to non-vested shares

 

 

(700

)

 

 

(571

)

 

 

(385

)

Adjustment to carrying value of redeemable noncontrolling interest

 

 

 

 

 

 

 

 

 

Net income allocated to Viad common stockholders (basic)

 

$

57,007

 

 

$

41,698

 

 

$

26,221

 

Basic weighted-average outstanding common shares

 

 

20,146

 

 

 

19,990

 

 

 

19,797

 

Additional dilutive shares related to share-based compensation

 

 

259

 

 

 

187

 

 

 

184

 

Diluted weighted-average outstanding shares

 

 

20,405

 

 

 

20,177

 

 

 

19,981

 

Income per share:

 

 

 

 

 

 

 

 

 

 

 

 

Basic income attributable to Viad common stockholders

 

$

2.83

 

 

$

2.09

 

 

$

1.32

 

Diluted income attributable to Viad common stockholders

 

$

2.83

 

 

$

2.09

 

 

$

1.32

 

 

Options to purchase 8,000 shares during 2017, 500 shares during 2016, and 4,000 shares during 2015 of common stock were outstanding, but were not included in the computation of dilutive shares outstanding because the effect would be anti-dilutive.

Preferred Stock Purchase Rights
Preferred Stock Purchase Rights

Note 14. Preferred Stock Purchase Rights

We authorized five million shares of Preferred Stock and two million shares of Junior Participating Preferred Stock, none of which was outstanding on December 31, 2017.

Accumulated Other Comprehensive Income (Loss)
Accumulated Other Comprehensive Income (Loss)

Note 15. Accumulated Other Comprehensive Income (Loss)

Changes in AOCI by component are as follows:

(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, 2015

 

$

346

 

 

$

(23,257

)

 

$

(11,265

)

 

$

(34,176

)

Other comprehensive income (loss) before reclassifications

 

 

135

 

 

 

(5,827

)

 

 

 

 

 

(5,692

)

Amounts reclassified from AOCI, net of tax

 

 

(60

)

 

 

 

 

 

537

 

 

 

477

 

Net other comprehensive income (loss)

 

 

75

 

 

 

(5,827

)

 

 

537

 

 

 

(5,215

)

Balance at December 31, 2016

 

$

421

 

 

$

(29,084

)

 

$

(10,728

)

 

$

(39,391

)

Other comprehensive income before reclassifications

 

 

257

 

 

 

17,058

 

 

 

 

 

 

17,315

 

Amounts reclassified from AOCI, net of tax

 

 

(62

)

 

 

 

 

 

(430

)

 

 

(492

)

Net other comprehensive income (loss)

 

 

195

 

 

 

17,058

 

 

 

(430

)

 

 

16,823

 

Balance at December 31, 2017

 

$

616

 

 

$

(12,026

)

 

$

(11,158

)

 

$

(22,568

)

The following table presents information about reclassification adjustments out of AOCI:

 

 

Year Ended December 31,

 

 

Affected Line Item in the

Statement Where Net

Income is Presented

(in thousands)

 

2017

 

 

2016

 

 

 

Unrealized gains on investments

 

$

(100

)

 

$

(97

)

 

Interest income

Tax effect

 

 

38

 

 

 

37

 

 

Income taxes

 

 

$

(62

)

 

$

(60

)

 

 

 

 

 

 

 

 

 

 

 

 

 

Recognized net actuarial loss (gains)(1)

 

$

507

 

 

$

1,440

 

 

 

Amortization of prior service credit(1)

 

 

(1,247

)

 

 

(575

)

 

 

Tax effect

 

 

310

 

 

 

(328

)

 

Income taxes

 

 

$

(430

)

 

$

537

 

 

 

(1)

Amount included in pension expense. Refer to Note 17 – Pension and Postretirement Benefits.

Income Taxes
Income Taxes

Note 16. Income Taxes

We record current income tax expense for the amounts that we expect to report and pay on our income tax returns and deferred income tax expense for the change in the deferred tax assets and liabilities. On December 22, 2017, the President of the United States signed into law the Tax Cuts and Jobs Act (the “Tax Act”) that significantly changed the U.S. tax code and reduced the U.S. federal corporate tax rate from 35% to 21%. Deferred tax assets and liabilities are recorded for the difference between the financial statement and tax basis of assets and liabilities, measured at the enacted tax rate applicable when the differences reverse. We recognized deferred tax expense of $8.0 million for the remeasurement of the net deferred tax assets in the fourth quarter of 2017.  

The Tax Act included the transition from a worldwide system of taxation to a territorial system and required a one-time deemed mandatory repatriation of post-1986 undistributed foreign subsidiary earnings and profits (“E&P”). As of December 31, 2017, we had an estimated $174.0 million of undistributed foreign E&P subject to the deemed mandatory repatriation and recognized current income tax expense of $8.1 million in the fourth quarter of 2017.  

In addition to the impact recorded as of December 31, 2017, the Tax Act changed existing tax laws, effective January 1, 2018, including the repeal of the corporate alternative minimum tax and the increasing alternative minimum tax credit carryforward utilization, as well as establishing two new taxes, the base erosion anti-abuse tax (“BEAT”) and the global intangible low-taxed income (“GILTI”) tax after the foreign intangible deduction (“FDII”).

Under the new BEAT regime, certain payments made to related foreign companies are treated as base-eroding and limits the deductibility of these payments and imposes a minimum tax in excess of regular tax liability. We have reviewed the applicability of the BEAT provisions to our transactions and we do not expect to be subject to BEAT and have not recorded any provision for BEAT in the year ended December 31, 2017.

Under the new GILTI regime, earnings of foreign subsidiaries in excess of an allowable return on the subsidiary’s tangible assets are required to be included in our U.S. taxable income. Because of the complexity of the new GILTI tax rules, we are continuing to assess the impact and have not recorded a provision for the GILTI tax in the year ended December 31, 2017.

On December 22, 2017, the SEC issued Staff Accounting Bulletin No. 118 (“SAB 118”), which provides guidance on accounting for the tax effects of the Tax Act under U.S. GAAP for SEC registrants who do not have the necessary information available, prepared or analyzed in reasonable detail to complete the accounting for certain income tax effects of the Tax Act. In accordance with SAB 118, to the extent that a company’s accounting is incomplete but it is able to determine a reasonable estimate, it must record a provisional estimate in the financial statements.  

We have not completed the detailed accounting for all of the income tax effects of the Tax Act, specifically the BEAT and GILTI taxes, since the computations are complex and we need additional time to complete a full analysis. Under SAB 118, we recorded a provisional estimate for the mandatory repatriation of post-1986 undistributed foreign subsidiary E&P of $8.1 million and the remeasurement of the net deferred tax assets of $8.0 million for the year ended December 31, 2017. The ultimate impact may differ from these provisional amounts, possibly materially, due to additional analysis, changes in interpretations and assumptions we have made, additional regulatory guidance that may be issued and actions we may take as a result of the Tax Act. SAB 118 provides a measurement period that should not extend beyond one year from the enactment date and we expect to complete the detailed accounting and include any adjustments within this period.

Income from continuing operations before income taxes consisted of the following: 

 

 

Year Ended December 31,

 

(in thousands)

 

2017

 

 

2016

 

 

2015

 

Foreign

 

$

82,919

 

 

$

33,611

 

 

$

35,571

 

United States

 

 

21,431

 

 

 

31,118

 

 

 

2,364

 

Income from continuing operations before income taxes

 

$

104,350

 

 

$

64,729

 

 

$

37,935

 

Significant components of the income tax provision from continuing operations are as follows:

 

 

Year Ended December 31,

 

(in thousands)

 

2017

 

 

2016

 

 

2015

 

Current:

 

 

 

 

 

 

 

 

 

 

 

 

United States:

 

 

 

 

 

 

 

 

 

 

 

 

Federal

 

$

1,693

 

 

$

3,685

 

 

$

(876

)

State

 

 

2,573

 

 

 

1,716

 

 

 

1,558

 

Foreign

 

 

15,583

 

 

 

8,177

 

 

 

9,342

 

Total current

 

 

19,849

 

 

 

13,578

 

 

 

10,024

 

Deferred:

 

 

 

 

 

 

 

 

 

 

 

 

United States:

 

 

 

 

 

 

 

 

 

 

 

 

Federal

 

 

19,893

 

 

 

8,427

 

 

 

1,854

 

State

 

 

1,761

 

 

 

(598

)

 

 

(164

)

Foreign

 

 

4,395

 

 

 

(157

)

 

 

(1,221

)

Total deferred

 

 

26,049

 

 

 

7,672

 

 

 

469

 

Income tax expense

 

$

45,898

 

 

$

21,250

 

 

$

10,493

 

 

We are subject to income tax in jurisdictions in which we operate. A reconciliation of the statutory federal income tax rate to the effective tax rate is as follows:

 

 

 

Year Ended December 31,

 

(in thousands)

 

2017

 

 

2016

 

 

2015

 

Computed income tax expense at statutory federal income tax rate of 35%

 

$

36,522

 

 

 

35.0

%

 

$

22,655

 

 

 

35.0

%

 

$

13,277

 

 

 

35.0

%

State income taxes, net of federal benefit

 

 

1,160

 

 

 

1.1

%

 

 

292

 

 

 

0.5

%

 

 

1,713

 

 

 

4.5

%

Deemed mandatory repatriation state tax

 

 

1,206

 

 

 

1.2

%

 

 

 

 

 

 

 

 

 

 

 

 

Deemed mandatory repatriation federal tax, net of foreign tax credit

 

 

6,936

 

 

 

6.6

%

 

 

 

 

 

 

 

 

 

 

 

 

Remeasurement of deferred taxes due to reduction in U.S. tax rate *

 

 

8,000

 

 

 

7.7

%

 

 

 

 

 

 

 

 

 

 

 

 

Foreign tax rate differential

 

 

(5,031

)

 

 

(4.8

)%

 

 

(882

)

 

 

(1.4

)%

 

 

(1,181

)

 

 

(3.1

)%

U.S. tax on current year foreign earnings, net of foreign tax credits

 

 

(2,726

)

 

 

(2.6

)%

 

 

(373

)

 

 

(0.6

)%

 

 

(948

)

 

 

(2.5

)%

Change in valuation allowance

 

 

(796

)

 

 

(0.8

)%

 

 

1,230

 

 

 

1.9

%

 

 

(944

)

 

 

(2.5

)%

Other adjustments, net

 

 

627

 

 

 

0.6

%

 

 

(1,672

)

 

 

(2.6

)%

 

 

(1,424

)

 

 

(3.7

)%

Income tax expense

 

$

45,898

 

 

 

44.0

%

 

$

21,250

 

 

 

32.8

%

 

$

10,493

 

 

 

27.7

%

 

* Includes $0.6 million increase to the valuation allowance related to the remeasurement of deferred taxes due to the reduction in U.S. tax rate.

 

The components of deferred income tax assets and liabilities included in the Consolidated Balance Sheets are as follows:

 

 

 

December 31,

 

(in thousands)

 

2017

 

 

2016

 

Deferred tax assets:

 

 

 

 

 

 

 

 

Tax credit carryforwards

 

$

6,654

 

 

$

11,380

 

Pension, compensation, and other employee benefits

 

 

15,173

 

 

 

22,868

 

Provisions for losses

 

 

5,826

 

 

 

10,235

 

Net operating loss carryforward

 

 

5,195

 

 

 

5,023

 

State income taxes

 

 

2,502

 

 

 

3,790

 

Other deferred income tax assets

 

 

2,796

 

 

 

5,020

 

Total deferred tax assets

 

 

38,146

 

 

 

58,316

 

Valuation allowance

 

 

(4,010

)

 

 

(3,998

)

Foreign deferred tax assets included above

 

 

(2,396

)

 

 

(1,972

)

Net deferred tax assets

 

 

31,740

 

 

 

52,346

 

Deferred tax liabilities:

 

 

 

 

 

 

 

 

Property and equipment

 

 

(10,530

)

 

 

(3,299

)

Deferred tax related to life insurance

 

 

(3,556

)

 

 

(5,642

)

Goodwill and other intangible assets

 

 

(4,299

)

 

 

(4,535

)

Other deferred income tax liabilities

 

 

(463

)

 

 

(557

)

Total deferred tax liabilities

 

 

(18,848

)

 

 

(14,033

)

Foreign deferred tax liabilities included above

 

 

7,869

 

 

 

2,852

 

United States net deferred tax assets

 

$

20,761

 

 

$

41,165

 

 

We use significant judgment in forming conclusions regarding the recoverability of our deferred tax assets and evaluate all available positive and negative evidence to determine if it is more-likely-than-not that the deferred tax assets will be realized. To the extent recovery does not appear likely, a valuation allowance must be recorded. We had gross deferred tax assets of $38.1 million as of December 31, 2017 and $58.3 million as of December 31, 2016. These deferred tax assets reflect the expected future tax benefits to be realized upon reversal of deductible temporary differences and the utilization of net operating loss and tax credit carryforwards.

As of December 31, 2017, foreign tax credit carryforwards were $0.4 million, of which $0.1 million are U.S. foreign tax credits and $0.3 million are United Kingdom foreign tax credits. The U.S. foreign tax credits are subject to a 10-year carryforward period and will expire in 2021. As of December 31, 2017, we had alternative minimum tax credit carryforwards of $6.2 million that will be fully utilized against future tax liabilities before becoming refundable as allowed under the Tax Act.

We had gross state and foreign net operating loss carryforwards of $68.4 million as of December 31, 2017 and $63.0 million as of December 31, 2016, for which we had deferred tax assets of $5.2 million as of December 31, 2017 and $5.0 million as of December 31, 2016. The state and foreign net operating loss carryforwards expire on various dates from 2018 through 2038.

As of December 31, 2017 and 2016, the valuation allowance was $4.0 million. During 2017, we had a $1.6 million decrease on German foreign net operating loss carryforwards, offset by a $0.3 million increase for the United Kingdom foreign tax credits (although subject to an indefinite carryforward period, do not meet the more likely-than-not threshold for recognition), a $0.5 million increase for the state net operating loss return to provision true up, a $0.6 million increase due to the remeasurement for the reduction in U.S. tax rate, and a $0.2 million increase in foreign exchange.

While we believe that the deferred tax assets, net of existing valuation allowances, will be utilized in future periods, there are inherent uncertainties regarding the ultimate realization of these assets. It is possible that the relative weight of positive and negative evidence regarding the realization of deferred tax assets may change, which could result in a material increase or decrease in our valuation allowance. Such a change could result in a material increase or decrease to income tax expense in the period the assessment was made.

We have not recorded deferred taxes for certain states or foreign withholding taxes on certain historical unremitted earnings of our subsidiaries located in Canada, the United Kingdom, and the Netherlands as we intend to reinvest those earnings in operations outside of the United States.

We exercise judgment in determining the income tax provision for positions taken on prior returns when the ultimate tax determination is uncertain. We classify liabilities associated with uncertain tax positions as non-current liabilities in the Consolidated Balance Sheets unless expected to be paid or released within one year. We had liabilities associated with uncertain tax positions, including interest and penalties, of $1.7 million as of December 31, 2017 and $2.7 million as of December 31, 2016. Uncertain tax positions, including interest and penalties, are classified as a component of income tax expense.

During 2017, we decreased the liability for continuing operations uncertain tax positions by $0.1 million due to lapse of statute and we increased accrued interest and penalties for continuing operations positions by $0.1 million. We expect $1.3 million of the continuing operations uncertain tax positions to be resolved or settled within the next twelve months and have classified this amount as a current liability.

During 2017, we released the liability for discontinued operations uncertain tax positions of $1.0 million, including $0.4 million in accrued interest and penalties, due to a statute expiration, which was recorded through discontinued operations. We had liabilities associated with discontinued operations uncertain tax positions of zero as of December 31, 2017 and $1.0 million as of December 31, 2016.

A reconciliation of the liabilities associated with uncertain tax positions (excluding interest and penalties) is as follows:

 

(in thousands)

 

Continuing

Operations

 

 

Discontinued

Operations

 

 

Total

 

Balance at December 31, 2014

 

$

1,283

 

 

$

636

 

 

$

1,919

 

Additions for tax positions taken in prior years

 

 

43

 

 

 

 

 

 

43

 

Reductions for tax positions taken in prior years

 

 

(666

)

 

 

 

 

 

(666

)

Reductions for lapse of applicable statutes

 

 

(353

)

 

 

 

 

 

(353

)

Balance at December 31, 2015

 

 

307

 

 

 

636

 

 

 

943

 

Additions for tax positions taken in prior years

 

 

1,295

 

 

 

 

 

 

1,295

 

Reductions for lapse of applicable statutes

 

 

(43

)

 

 

 

 

 

(43

)

Balance at December 31, 2016

 

 

1,559

 

 

 

636

 

 

 

2,195

 

Additions for tax positions taken in prior years

 

 

43

 

 

 

 

 

 

43

 

Reductions for lapse of applicable statutes

 

 

(177

)

 

 

(636

)

 

 

(813

)

Balance at December 31, 2017

 

$

1,425

 

 

$

 

 

$

1,425

 

We are subject to regular and recurring audits by taxing authorities in jurisdictions in which we operate or have operated in the past, including various foreign countries in addition to the United States, Canada, and the United Kingdom.

Our 2014 through 2017 U.S. federal tax years and various state tax years from 2013 through 2017 remain subject to income tax examinations by tax authorities. Tax years 2012 through 2017 remain subject to examination by various foreign taxing jurisdictions.

Cash paid for income taxes was $14.6 million during 2017, $14.1 million during 2016, and $10.1 million during 2015.

Pension and Postretirement Benefits
Pension and Postretirement Benefits

Note 17. Pension and Postretirement Benefits

Domestic Plans

We have frozen defined benefit pension plans held in trust for certain employees which we funded. We also maintain certain unfunded defined benefit pension plans which provide supplemental benefits to select management employees. These plans use traditional defined benefit formulas based on years of service and final average compensation. Funding policies provide that payments to defined benefit pension trusts shall be at least equal to the minimum funding required by applicable regulations.

We also have certain defined benefit postretirement plans that provide medical and life insurance for certain eligible employees, retirees, and dependents. The related postretirement benefit liabilities are recognized over the period that services are provided by employees. In addition, we retained the obligations for these benefits for retirees of certain sold businesses. While the plans have no funding requirements, we may fund the plans.

The components of net periodic benefit cost and other amounts recognized in other comprehensive income (loss) of our pension plans consist of the following:

 

 

December 31,

 

(in thousands)

 

2017

 

 

2016

 

 

2015

 

Net periodic benefit cost:

 

 

 

 

 

 

 

 

 

 

 

 

Service cost

 

$

64

 

 

$

98

 

 

$

101

 

Interest cost

 

 

803

 

 

 

1,032

 

 

 

1,018

 

Expected return on plan assets

 

 

(176

)

 

 

(256

)

 

 

(380

)

Recognized net actuarial loss

 

 

433

 

 

 

423

 

 

 

492

 

Net periodic benefit cost

 

 

1,124

 

 

 

1,297

 

 

 

1,231

 

Other changes in plan assets and benefit obligations recognized in other

   comprehensive income (loss):

 

 

 

 

 

 

 

 

 

 

 

 

Net actuarial loss (gain)

 

 

114

 

 

 

1

 

 

 

(963

)

Reversal of amortization item:

 

 

 

 

 

 

 

 

 

 

 

 

Net actuarial loss

 

 

(433

)

 

 

(423

)

 

 

(492

)

Total recognized in other comprehensive income (loss)

 

 

(319

)

 

 

(422

)

 

 

(1,455

)

Total recognized in net periodic benefit cost and other

   comprehensive income (loss)

 

$

805

 

 

$

875

 

 

$

(224

)

The components of net periodic benefit cost and other amounts recognized in other comprehensive income (loss) of our postretirement benefit plans consist of the following:

 

 

December 31,

 

(in thousands)

 

2017

 

 

2016

 

 

2015

 

Net periodic benefit cost:

 

 

 

 

 

 

 

 

 

 

 

 

Service cost

 

$

92

 

 

$

99

 

 

$

152

 

Interest cost

 

 

413

 

 

 

573

 

 

 

619

 

Amortization of prior service credit

 

 

(431

)

 

 

(503

)

 

 

(552

)

Recognized net actuarial loss

 

 

164

 

 

 

295

 

 

 

528

 

Net periodic benefit cost

 

 

238

 

 

 

464

 

 

 

747

 

Other changes in plan assets and benefit obligations recognized in other

   comprehensive income (loss):

 

 

 

 

 

 

 

 

 

 

 

 

Net actuarial loss (gain)

 

 

237

 

 

 

(790

)

 

 

(1,248

)

Prior service credit

 

 

816

 

 

 

73

 

 

 

3

 

Reversal of amortization item:

 

 

 

 

 

 

 

 

 

 

 

 

Net actuarial loss

 

 

(164

)

 

 

(295

)

 

 

(528

)

Prior service credit

 

 

431

 

 

 

503

 

 

 

552

 

Total recognized in other comprehensive income (loss)

 

 

1,320

 

 

 

(509

)

 

 

(1,221

)

Total recognized in net periodic benefit cost and other

   comprehensive income (loss)

 

$

1,558

 

 

$

(45

)

 

$

(474

)

The following table indicates the funded status of the plans as of December 31:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Postretirement

 

 

 

Funded Plans

 

 

Unfunded Plans

 

 

Benefit Plans

 

(in thousands)

 

2017

 

 

2016

 

 

2017

 

 

2016

 

 

2017

 

 

2016

 

Change in benefit obligation:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Benefit obligation at beginning of year

 

$

15,027

 

 

$

14,906

 

 

$

9,825

 

 

$

10,049

 

 

$

13,619

 

 

$

14,573

 

Service cost

 

 

 

 

 

 

 

 

64

 

 

 

97

 

 

 

92

 

 

 

99

 

Interest cost

 

 

492

 

 

 

629

 

 

 

311

 

 

 

403

 

 

 

413

 

 

 

573

 

Actuarial adjustments

 

 

618

 

 

 

240

 

 

 

175

 

 

 

(221

)

 

 

237

 

 

 

(790

)

Plan amendments

 

 

 

 

 

 

 

 

 

 

 

 

 

 

816

 

 

 

73

 

Benefits paid

 

 

(697

)

 

 

(748

)

 

 

(518

)

 

 

(503

)

 

 

(1,370

)

 

 

(909

)

Benefit obligation at end of year

 

 

15,440

 

 

 

15,027

 

 

 

9,857

 

 

 

9,825

 

 

 

13,807

 

 

 

13,619

 

Change in plan assets:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Fair value of plan assets at beginning of year

 

 

10,416

 

 

 

10,479

 

 

 

 

 

 

 

 

 

 

 

 

 

Actual return on plan assets

 

 

855

 

 

 

273

 

 

 

 

 

 

 

 

 

 

 

 

 

Company contributions

 

 

1,016

 

 

 

412

 

 

 

518

 

 

 

503

 

 

 

1,370

 

 

 

909

 

Benefits paid

 

 

(697

)

 

 

(748

)

 

 

(518

)

 

 

(503

)

 

 

(1,370

)

 

 

(909

)

Fair value of plan assets at end of year

 

 

11,590

 

 

 

10,416

 

 

 

 

 

 

 

 

 

 

 

 

 

Funded status at end of year

 

$

(3,850

)

 

$

(4,611

)

 

$

(9,857

)

 

$

(9,825

)

 

$

(13,807

)

 

$

(13,619

)

The net amounts recognized in the Consolidated Balance Sheets under the caption “Pension and postretirement benefits” as of December 31 are as follows:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Postretirement

 

 

 

Funded Plans

 

 

Unfunded Plans

 

 

Benefit Plans

 

(in thousands)

 

2017

 

 

2016

 

 

2017

 

 

2016

 

 

2017

 

 

2016

 

Other current liabilities

 

$

 

 

$

 

 

$

809

 

 

$

699

 

 

$

1,112

 

 

$

1,094

 

Non-current liabilities

 

 

3,850

 

 

 

4,611

 

 

 

9,048

 

 

 

9,126

 

 

 

12,695

 

 

 

12,525

 

Net amount recognized

 

$

3,850

 

 

$

4,611

 

 

$

9,857

 

 

$

9,825

 

 

$

13,807

 

 

$

13,619

 

 

Amounts recognized in AOCI as of December 31 are as follows:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Postretirement

 

 

 

 

 

 

 

 

 

 

 

Funded Plans

 

 

Unfunded Plans

 

 

Benefit Plans

 

 

Total

 

 

Total

 

(in thousands)

 

2017

 

 

2016

 

 

2017

 

 

2016

 

 

2017

 

 

2016

 

 

2017

 

 

2016

 

Net actuarial loss

 

$

8,681

 

 

$

9,090

 

 

$

2,587

 

 

$

2,496

 

 

$

2,784

 

 

$

2,710

 

 

$

14,052

 

 

$

14,296

 

Prior service credit

 

 

 

 

 

 

 

 

 

 

 

 

 

 

(351

)

 

 

(1,598

)

 

 

(351

)

 

 

(1,598

)

Subtotal

 

 

8,681

 

 

 

9,090

 

 

 

2,587

 

 

 

2,496

 

 

 

2,433

 

 

 

1,112

 

 

 

13,701

 

 

 

12,698

 

Less tax effect

 

 

(3,292

)

 

 

(3,447

)

 

 

(981

)

 

 

(947

)

 

 

(923

)

 

 

(422

)

 

 

(5,196

)

 

 

(4,816

)

Total

 

$

5,389

 

 

$

5,643

 

 

$

1,606

 

 

$

1,549

 

 

$

1,510

 

 

$

690

 

 

$

8,505

 

 

$

7,882

 

The estimated net actuarial loss for the postretirement benefit plans that is expected to be amortized from AOCI into net periodic benefit cost in 2018 is approximately $0.2 million. The estimated prior service credit for the postretirement benefit plans that is expected to be amortized from AOCI into net periodic benefit credit in 2018 is approximately $0.2 million.

The estimated net actuarial loss that is expected to be amortized from AOCI into net periodic benefit cost in 2018 is approximately $0.1 million for the unfunded benefit plans and $0.4 million for the funded benefit plans.

The fair value of the domestic plans’ assets by asset class are as follows:

 

 

 

 

 

 

Fair Value Measurements at December 31, 2017

 

 

 

 

 

 

 

Quoted Prices

in Active

Markets

 

 

Significant

Other

Observable

Inputs

 

 

Significant

Unobservable

Inputs

 

(in thousands)

 

Total

 

 

(Level 1)

 

 

(Level 2)

 

 

(Level 3)

 

Domestic pension plans:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Fixed income securities

 

$

5,787

 

 

$

5,787

 

 

$

 

 

$

 

Equity securities

 

 

5,390

 

 

 

5,390

 

 

 

 

 

 

 

Cash

 

 

214

 

 

 

214

 

 

 

 

 

 

 

Other

 

 

199

 

 

 

 

 

 

199

 

 

 

 

Total

 

$

11,590

 

 

$

11,391

 

 

$

199

 

 

$

 

 

 

 

 

 

 

 

Fair Value Measurements at December 31, 2016

 

 

 

 

 

 

 

Quoted Prices

in Active

Markets

 

 

Significant

Other

Observable

Inputs

 

 

Significant

Unobservable

Inputs

 

(in thousands)

 

Total

 

 

(Level 1)

 

 

(Level 2)

 

 

(Level 3)

 

Domestic pension plans:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Fixed income securities

 

$

5,352

 

 

$

5,352

 

 

$

 

 

$

 

Equity securities

 

 

4,580

 

 

 

4,580

 

 

 

 

 

 

 

Cash

 

 

280

 

 

 

280

 

 

 

 

 

 

 

Other

 

 

204

 

 

 

 

 

 

204

 

 

 

 

Total

 

$

10,416

 

 

$

10,212

 

 

$

204

 

 

$

 

We employ a total return investment approach whereby a mix of equities and fixed income securities is used to maximize the long-term return of plan assets for a prudent level of risk. Risk tolerance is established through careful consideration of plan liabilities, plan funded status, and corporate financial condition. The investment portfolio contains a diversified blend of equity and fixed income securities. Furthermore, equity securities are diversified across U.S. and non-U.S. stocks, as well as growth and value. Investment risk is measured and monitored on an ongoing basis through quarterly investment portfolio reviews and annual liability measurements.

We utilize a building-block approach in determining the long-term expected rate of return on plan assets. Historical markets are studied and long-term historical relationships between equity securities and fixed income securities are preserved consistent with the widely accepted capital market principle that assets with higher volatility generate a greater return over the long run. Current market factors such as inflation and interest rates are evaluated before long-term capital market assumptions are determined. The long-term portfolio return also considers diversification and rebalancing. Peer data and historical returns are reviewed relative to our assumed rates for reasonableness and appropriateness.

The following pension and postretirement benefit payments, which reflect expected future service, as appropriate, are expected to be paid:

(in thousands)

 

Funded

Plans

 

 

Unfunded

Plans

 

 

Postretirement

Benefit

Plans

 

2018

 

$

1,434

 

 

$

823

 

 

$

1,132

 

2019

 

$

927

 

 

$

738

 

 

$

1,127

 

2020

 

$

997

 

 

$

740

 

 

$

1,100

 

2021

 

$

921

 

 

$

725

 

 

$

1,066

 

2022

 

$

990

 

 

$

709

 

 

$

1,039

 

2023-2027

 

$

4,859

 

 

$

3,259

 

 

$

4,685

 

Foreign Pension Plans

Certain of our foreign operations also maintain defined benefit pension plans held in trust for certain employees which are funded by the companies, and unfunded defined benefit pension plans providing supplemental benefits to select management employees. These plans use traditional defined benefit formulas based on years of service and final average compensation. Funding policies provide that payments to defined benefit pension trusts shall be at least equal to the minimum funding required by applicable regulations. The components of net periodic benefit cost and other amounts recognized in other comprehensive income (loss) included the following:

 

 

December 31,

 

(in thousands)

 

2017

 

 

2016

 

 

2015

 

Net periodic benefit cost:

 

 

 

 

 

 

 

 

 

 

 

 

Service cost

 

$

530

 

 

$

488

 

 

$

503

 

Interest cost

 

 

492

 

 

 

488

 

 

 

505

 

Expected return on plan assets

 

 

(602

)

 

 

(558

)

 

 

(583

)

Recognized net actuarial loss

 

 

155

 

 

 

162

 

 

 

160

 

Settlement

 

 

777

 

 

 

 

 

 

 

Net periodic benefit cost

 

 

1,352

 

 

 

580

 

 

 

585

 

Other changes in plan assets and benefit obligations recognized in other

   comprehensive income (loss):

 

 

 

 

 

 

 

 

 

 

 

 

Net actuarial loss

 

 

(106

)

 

 

158

 

 

 

182

 

Reversal of amortization of net actuarial loss

 

 

(155

)

 

 

(162

)

 

 

(160

)

Total recognized in other comprehensive income (loss)

 

 

(261

)

 

 

(4

)

 

 

22

 

Total recognized in net periodic benefit cost and other

   comprehensive income

 

$

1,091

 

 

$

576

 

 

$

607

 

 

The following table represents the funded status of the plans as of December 31:

 

 

Funded Plans

 

 

Unfunded Plans

 

(in thousands)

 

2017

 

 

2016

 

 

2017

 

 

2016

 

Change in benefit obligation:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Benefit obligation at beginning of year

 

$

10,488

 

 

$

9,744

 

 

$

2,486

 

 

$

2,470

 

Service cost

 

 

530

 

 

 

488

 

 

 

 

 

 

 

Interest cost

 

 

406

 

 

 

400

 

 

 

87

 

 

 

87

 

Actuarial adjustments

 

 

658

 

 

 

395

 

 

 

(54

)

 

 

105

 

Benefits paid

 

 

(3,231

)

 

 

(818

)

 

 

(182

)

 

 

(177

)

Translation adjustment

 

 

670

 

 

 

279

 

 

 

245

 

 

 

1

 

Benefit obligation at end of year

 

 

9,521

 

 

 

10,488

 

 

 

2,582

 

 

 

2,486

 

Change in plan assets:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Fair value of plan assets at beginning of year

 

 

10,576

 

 

 

9,705

 

 

 

 

 

 

 

Actual return on plan assets

 

 

764

 

 

 

617

 

 

 

 

 

 

 

Company contributions

 

 

710

 

 

 

795

 

 

 

182

 

 

 

177

 

Benefits paid

 

 

(3,231

)

 

 

(818

)

 

 

(182

)

 

 

(177

)

Translation adjustment

 

 

674

 

 

 

277

 

 

 

 

 

 

 

Fair value of plan assets at end of year

 

 

9,493

 

 

 

10,576

 

 

 

 

 

 

 

Funded status at end of year

 

$

(28

)

 

$

88

 

 

$

(2,582

)

 

$

(2,486

)

The net amounts recognized in the Consolidated Balance Sheets under the caption “Pension and postretirement benefits” as of December 31 were as follows:

 

 

Funded Plans

 

 

Unfunded Plans

 

(in thousands)

 

2017

 

 

2016

 

 

2017

 

 

2016

 

Non-current assets

 

$

(15

)

 

$

(88

)

 

$

 

 

$

 

Other current liabilities

 

 

 

 

 

 

 

 

188

 

 

 

170

 

Non-current liabilities

 

 

43

 

 

 

 

 

 

2,394

 

 

 

2,316

 

Net amount recognized

 

$

28

 

 

$

(88

)

 

$

2,582

 

 

$

2,486

 

Net actuarial losses for the foreign funded plans recognized in AOCI were $2.5 million ($1.8 million after-tax) as of December 31, 2017 and $3.3 million ($2.5 million after-tax) as of December 31, 2016. Net actuarial losses for the foreign unfunded plans recognized in AOCI were $0.7 million ($0.5 million after-tax) as of December 31, 2017 and $0.4 million ($0.3 million after-tax) as of December 31, 2016.

The fair value information related to the foreign pension plans’ assets is summarized in the following tables:

 

 

 

 

 

 

 

Fair Value Measurements at Reporting Date Using

 

(in thousands)

 

December 31, 2017

 

 

Quoted Prices

in Active

Markets

(Level 1)

 

 

Significant

Other

Observable

Inputs

(Level 2)

 

 

Significant

Unobserved

Inputs

(Level 3)

 

Assets:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Fixed income securities

 

$

4,414

 

 

$

4,414

 

 

$

 

 

$

 

Equity securities

 

 

4,889

 

 

 

4,466

 

 

 

423

 

 

 

 

Other

 

 

190

 

 

 

190

 

 

 

 

 

 

 

Total

 

$

9,493

 

 

$

9,070

 

 

$

423

 

 

$

 

 

 

 

 

 

 

 

Fair Value Measurements at Reporting Date Using

 

(in thousands)

 

December 31, 2016

 

 

Quoted Prices

in Active

Markets

(Level 1)

 

 

Significant

Other

Observable

Inputs

(Level 2)

 

 

Significant

Unobserved

Inputs

(Level 3)

 

Assets:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Fixed income securities

 

$

4,082

 

 

$

4,082

 

 

$

 

 

$

 

Equity securities

 

 

4,518

 

 

 

4,130

 

 

 

388

 

 

 

 

Other

 

 

1,976

 

 

 

1,976

 

 

 

 

 

 

 

Total

 

$

10,576

 

 

$

10,188

 

 

$

388

 

 

$

 

 

The following payments, which reflect expected future service, as appropriate, are expected to be paid:

(in thousands)

 

Funded

Plans

 

 

Unfunded

Plans

 

2018

 

$

365

 

 

$

191

 

2019

 

$

376

 

 

$

190

 

2020

 

$

378

 

 

$

190

 

2021

 

$

396

 

 

$

190

 

2022

 

$

496

 

 

$

189

 

2023-2027

 

$

2,499

 

 

$

935

 

Information for Pension Plans with an Accumulated Benefit Obligation in Excess of Plan Assets

The accumulated benefit obligations in excess of plan assets as of December 31 were as follows:

 

 

Domestic Plans

 

 

 

Funded Plans

 

 

Unfunded Plans

 

(in thousands)

 

2017

 

 

2016

 

 

2017

 

 

2016

 

Projected benefit obligation

 

$

15,440

 

 

$

15,027

 

 

$

9,857

 

 

$

9,825

 

Accumulated benefit obligation

 

$

15,440

 

 

$

15,027

 

 

$

9,826

 

 

$

9,737

 

Fair value of plan assets

 

$

11,590

 

 

$

10,416

 

 

$

 

 

$

 

 

 

 

Foreign Plans

 

 

 

Funded Plans

 

 

Unfunded Plans

 

(in thousands)

 

2017

 

 

2016

 

 

2017

 

 

2016

 

Projected benefit obligation

 

$

9,521

 

 

$

10,488

 

 

$

2,582

 

 

$

2,486

 

Accumulated benefit obligation

 

$

8,819

 

 

$

9,906

 

 

$

2,582

 

 

$

2,486

 

Fair value of plan assets

 

$

9,493

 

 

$

10,576

 

 

$

 

 

$

 

Contributions

In aggregate for both the domestic and foreign plans, we anticipate contributing $1.1 million to the funded pension plans, $1.0 million to the unfunded pension plans, and $1.1 million to the postretirement benefit plans in 2018.

Weighted-Average Assumptions

Weighted-average assumptions used to determine benefit obligations as of December 31 were as follows:

 

 

Domestic Plans

 

 

 

 

 

 

 

 

 

 

 

Funded Plans

 

 

Unfunded Plans

 

 

Postretirement

Benefit Plans

 

 

Foreign Plans

 

 

 

2017

 

 

2016

 

 

2017

 

 

2016

 

 

2017

 

 

2016

 

 

2017

 

 

2016

 

Discount rate

 

 

3.63

%

 

 

4.12

%

 

 

3.55

%

 

 

3.99

%

 

 

3.59

%

 

 

4.08

%

 

 

3.15

%

 

 

3.52

%

Rate of compensation increase

 

N/A

 

 

N/A

 

 

 

3.00

%

 

 

3.00

%

 

N/A

 

 

N/A

 

 

 

2.26

%

 

 

2.34

%

Weighted-average assumptions used to determine net periodic benefit costs as of December 31 were as follows:

 

 

Domestic Plans

 

 

 

 

 

 

 

 

 

 

 

Funded Plans

 

 

Unfunded Plans

 

 

Postretirement

Benefit Plans

 

 

Foreign Plans

 

 

 

2017

 

 

2016

 

 

2017

 

 

2016

 

 

2017

 

 

2016

 

 

2017

 

 

2016

 

Discount rate

 

 

4.07

%

 

 

4.33

%

 

 

3.99

%

 

 

4.25

%

 

 

4.08

%

 

 

4.30

%

 

 

3.71

%

 

 

3.77

%

Expected return on plan assets

 

 

5.50

%

 

 

2.25

%

 

N/A

 

 

N/A

 

 

 

0.00

%

 

 

0.00

%

 

 

5.09

%

 

 

4.53

%

Rate of compensation increase

 

N/A

 

 

N/A

 

 

 

3.00

%

 

 

3.00

%

 

N/A

 

 

N/A

 

 

 

2.26

%

 

 

2.34

%

 

The assumed health care cost trend rate used in measuring the December 31, 2017 accumulated postretirement benefit obligation was 7.5%, declining one-third percent each year to the ultimate rate of 4.5% by the year 2026 and remaining at that level thereafter. The assumed health care cost trend rate used in measuring the December 31, 2016 accumulated postretirement benefit obligation was 7.0%, declining one-quarter percent each year to the ultimate rate of 4.5% by the year 2026 and remaining at that level thereafter.

A one-percentage-point increase in the assumed health care cost trend rate for each year would increase the accumulated postretirement benefit obligation as of December 31, 2017 by approximately $1.4 million and the total of service and interest cost components by approximately $0.1 million. A one-percentage-point decrease in the assumed health care cost trend rate for each year would decrease the accumulated postretirement benefit obligation as of December 31, 2017 by approximately $1.1 million and the total of service and interest cost components by approximately $0.1 million.

Multi-employer Plans

We contribute to defined benefit pension plans under the terms of collective-bargaining agreements that cover our union-represented employees. The financial risks of participating in these multi-employer pension plans generally include the fact that assets contributed to the plan by one employer may be used to provide benefits to employees of other participating employers. Furthermore, if a participating employer ceases to contribute to the plan, the unfunded obligations of the plan may be borne by the remaining participating employers. In addition, if we were to discontinue participating in some of our multi-employer pension plans, we may be required to pay those plans a withdrawal liability amount based on the underfunded status of the plan. We also contribute to defined contribution plans pursuant to collective-bargaining agreements, which are generally not subject to the funding risks inherent in defined benefit pension plans. The overall level of contributions to our multi-employer plans may significantly vary from year to year based on the demand for union-represented labor to support our operations. We do not have any minimum contribution requirements for future periods pursuant to our collective-bargaining agreements for individually significant multi-employer plans.

Our participation in multi-employer pension plans for 2017 is outlined in the following table. Unless otherwise noted, the most recent Pension Protection Act zone status available in 2017 and 2016 relates to the plan’s year end as of December 31, 2016 and 2015, respectively, and is based on information received from the plan. Among other factors, plans in the red zone are generally less than 65% funded, plans in the yellow zone are less than 80% funded, and plans in the green zone are at least 80% funded. The “FIP/RP Status Pending/Implemented” column indicates plans for which a financial improvement plan or a rehabilitation plan is either pending or has been implemented.

 

 

 

 

 

Plan

 

 

Pension

Protection Act

Zone Status

 

FIP/RP

Status

Pending/ Implemented

 

Viad Contributions

 

 

Surcharge Paid

 

Expiration

Date of

Collective-

Bargaining Agreement(s)

(in thousands)

 

EIN

 

No.

 

 

2017

 

2016

 

 

 

2017

 

 

2016

 

 

2015

 

 

 

 

 

Pension Fund:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Western Conference of  Teamsters Pension Plan

 

91-6145047

 

 

1

 

 

Green

 

Green

 

No

 

$

7,809

 

 

$

6,684

 

 

$

5,632

 

 

No

 

3/31/2020

Southern California Local 831—Employer Pension Fund(1)

 

95-6376874

 

 

1

 

 

Green

 

Green

 

No

 

 

3,087

 

 

 

2,805

 

 

 

2,485

 

 

No

 

8/31/2019

Chicago Regional Council of Carpenters Pension Fund

 

36-6130207

 

 

1

 

 

Green

 

Yellow

 

Yes

 

 

2,390

 

 

 

2,532

 

 

 

1,887

 

 

No

 

5/31/2019

IBEW Local Union  No 357 Pension Plan A

 

88-6023284

 

 

1

 

 

Green

 

Green

 

No

 

 

1,682

 

 

 

1,402

 

 

 

1,150

 

 

No

 

6/16/2018

Electrical Contractors Assoc. Chicago Local Union 134, IBEW Joint Pension Trust of Chicago Plan #2

 

51-6030753

 

 

2

 

 

Green

 

Green

 

No

 

 

1,099

 

 

 

845

 

 

 

1,190

 

 

No

 

6/6/2021

Central States, Southeast and Southwest Areas Pension Plan

 

36-6044243

 

 

1

 

 

Red

 

Red

 

Yes

 

 

1,060

 

 

 

1,151

 

 

 

948

 

 

No

 

12/31/2018

Southern California IBEW-NECA Pension Fund

 

95-6392774

 

 

1

 

 

Yellow

 

Yellow

 

Yes

 

 

905

 

 

 

701

 

 

 

835

 

 

Yes

 

continuous

Southwest Carpenters Pension Trust

 

95-6042875

 

 

1

 

 

Green

 

Green

 

No

 

 

883

 

 

 

791

 

 

 

750

 

 

No

 

6/30/2018

New England Teamsters & Trucking Industry Pension

 

04-6372430

 

 

1

 

 

Red

 

Red

 

Yes

 

 

772

 

 

 

552

 

 

 

381

 

 

No

 

3/31/2022

Machinery Movers Riggers & Mach Erect Local 136 Supplemental Retirement Plan(1)

 

36-1416355

 

 

11

 

 

Red

 

Red

 

Yes

 

 

719

 

 

 

1,203

 

 

 

502

 

 

Yes

 

6/30/2019

Sign Pictorial & Display Industry Pension Plan(1)

 

94-6278490

 

 

1

 

 

Green

 

Green

 

No

 

 

654

 

 

 

526

 

 

 

541

 

 

No

 

3/31/2018

All other funds(2)

 

 

 

 

 

 

 

 

 

 

 

 

 

 

2,900

 

 

 

3,585

 

 

 

4,259

 

 

 

 

 

Total contributions to defined benefit plans

 

 

 

 

 

 

 

 

 

 

 

 

 

 

23,960

 

 

 

22,777

 

 

 

20,560

 

 

 

 

 

Total contributions to other plans

 

 

 

 

 

 

 

 

 

 

 

 

 

 

2,613

 

 

 

2,995

 

 

 

1,428

 

 

 

 

 

Total contributions to multi-employer plans

 

 

 

 

 

 

 

 

 

 

 

 

 

$

26,573

 

 

$

25,772

 

 

$

21,988

 

 

 

 

 

(1)

We contributed more than 5% of total plan contributions for the 2016 and 2015 plan years based on the plans’ Form 5500s.

(2)

Represents participation in 35 pension funds during 2017.

Other Employee Benefits

We match U.S. employee contributions to the 401(k) plan with shares of our common stock held in treasury up to 100% of the first 3% of a participant’s salary plus 50% of the next 2%. The expense associated with our match was $4.2 million for 2017, $3.9 million for 2016, and $3.7 million for 2015.

Restructuring Charges
Restructuring Charges

Note 18. Restructuring Charges

GES Consolidation

We have taken certain restructuring actions designed to reduce our cost structure primarily within GES, as well as the elimination of certain positions at the corporate office. We implemented a strategic reorganization plan in order to consolidate the separate business units within GES U.S. We also consolidated facilities and streamlined our operations in the U.S., the United Kingdom, and Germany. As a result, we recorded restructuring charges in 2017, 2016, and 2015, 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 and certain reorganization activities within Pursuit. These charges primarily consist of severance and related benefits due to headcount reductions and charges related to the downsizing of facilities.

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

 

 

GES Consolidation

 

 

Other Restructurings

 

 

 

 

 

(in thousands)

 

Severance &

Employee

Benefits

 

 

Facilities

 

 

Severance &

Employee

Benefits

 

 

Total

 

Balance at December 31, 2014

 

$

543

 

 

$

1,161

 

 

$

240

 

 

$

1,944

 

Restructuring charges

 

 

1,767

 

 

 

587

 

 

 

602

 

 

 

2,956

 

Cash payments

 

 

(1,514

)

 

 

(457

)

 

 

(601

)

 

 

(2,572

)

Adjustment to liability

 

 

(45

)

 

 

 

 

 

(7

)

 

 

(52

)

Balance at December 31, 2015

 

 

751

 

 

 

1,291

 

 

 

234

 

 

 

2,276

 

Restructuring charges

 

 

3,693

 

 

 

759

 

 

 

731

 

 

 

5,183

 

Cash payments

 

 

(2,170

)

 

 

(1,150

)

 

 

(546

)

 

 

(3,866

)

Adjustment to liability

 

 

 

 

 

192

 

 

 

(3

)

 

 

189

 

Balance at December 31, 2016

 

 

2,274

 

 

 

1,092

 

 

 

416

 

 

 

3,782

 

Restructuring charges

 

 

442

 

 

 

265

 

 

 

297

 

 

 

1,004

 

Cash payments

 

 

(1,165

)

 

 

(550

)

 

 

(538

)

 

 

(2,253

)

Adjustment to liability

 

 

 

 

 

 

 

 

16

 

 

 

16

 

Balance at December 31, 2017

 

$

1,551

 

 

$

807

 

 

$

191

 

 

$

2,549

 

As of December 31, 2017, the liabilities related to severance and employee benefits are expected to be paid by the end of 2018. Additionally, the liability related to future lease payments will be paid over the remaining lease terms for GES. Refer to Note 22 – Segment Information, for information regarding restructuring charges by segment.

Leases and Other
Leases and Other

Note 19. Leases and Other

We entered into operating leases for the use of certain of our offices, equipment, and other facilities. These leases expire over periods up to 40 years. Leases which expire are generally renewed or replaced by similar leases. Some leases contain scheduled rental increases accounted for on a straight-line basis.

As of December 31, 2017, our future minimum rental payments and related sublease rentals receivable with respect to non-cancelable operating leases with terms in excess of one year were as follows:

(in thousands)

 

Rental

Payments

 

 

Receivable

Under Subleases

 

2018

 

$

23,503

 

 

$

2,627

 

2019

 

 

20,299

 

 

 

2,384

 

2020

 

 

17,265

 

 

 

2,209

 

2021

 

 

8,812

 

 

 

2,267

 

2022

 

 

5,555

 

 

 

2,195

 

Thereafter

 

 

81,135

 

 

 

3,657

 

Total

 

$

156,569

 

 

$

15,339

 

 

Net rent expense under operating leases consisted of the following:

 

 

December 31,

 

(in thousands)

 

2017

 

 

2016

 

 

2015

 

Minimum rentals

 

$

56,575

 

 

$

48,465

 

 

$

41,564

 

Sublease rentals

 

 

(1,525

)

 

 

(2,831

)

 

 

(3,457

)

Total rentals, net

 

$

55,050

 

 

$

45,634

 

 

$

38,107

 

 

The aggregate annual maturities and the related amounts representing interest on capital lease obligations are included in Note 11 – Debt and Capital Lease Obligations.

As of December 31, 2017, we had aggregate purchase obligations of $38.1 million related to various licensing agreements, consulting and other contracted services.

Litigation, Claims, Contingencies and Other
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. Although the amount of liability as of December 31, 2017 with respect to these 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 December 31, 2017, we had recorded environmental remediation liabilities of $2.4 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 December 31, 2017, on behalf of our subsidiaries, we had certain obligations under guarantees to third parties. These guarantees are not subject to liability recognition in the 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 December 31, 2017 would be $19.3 million. These guarantees relate to our leased facilities through October 2027. 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 whereby 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 2018 will be renegotiated in the ordinary course of business without having a material adverse effect on our operations. We entered into showsite and warehouse agreements with the Chicago Teamsters Local 727, effective January 1, 2014, and those agreements contain provisions that allow the parties to re-open negotiation of the agreements on pension-related issues. We are in informal discussions regarding those issues with all relevant parties to resolve those issues in a manner that will be reasonable and equitable to employees, customers, and shareholders. Although our labor relations are currently stable, disruptions pending the outcome of the Chicago Teamsters Local 727 negotiations could occur, as they could with any collective-bargaining agreement negotiation, with the possibility of an adverse impact on the operating results of GES.

Our business contributes to various multi-employer pension plans based on obligations arising under collective-bargaining agreements covering our union-represented employees. Based upon the information available from plan administrators, we believe that several of these multi-employer plans are underfunded. The Pension Protection Act of 2006 requires pension plans underfunded at certain levels to reduce, over defined time periods, the underfunded status. In addition, under current laws, the termination of a plan, or a voluntary withdrawal from a plan by us, or a shrinking contribution base to a plan as a result of the insolvency or withdrawal of other contributing employers to such plan, would require us to make payments to such plan for our proportionate share of the plan’s unfunded vested liabilities. As of December 31, 2017, the amount of additional funding, if any, that we would be required to make related to multi-employer pension plans is not ascertainable.

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 $19.1 million as of December 31, 2017 which includes $13.8 million related to workers’ compensation liabilities, and $5.3 million related to general/auto liability claims. We have also retained and provided for certain insurance liabilities in conjunction with previously sold businesses of $2.9 million as of December 31, 2017, related to workers’ compensation liabilities. 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 $5.5 million for 2017, $5.0 million for 2016, and $5.6 million for 2015.

In addition, as of December 31, 2017, we have recorded insurance liabilities of $10.4 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, $6.9 million related to workers’ compensation liabilities and $3.5 million related to general/auto liability claims which are recorded in other deferred items and liabilities in the Consolidated Balance Sheets with a corresponding receivable in other investments.

Redeemable Noncontrolling Interest
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, which is developing and will operate a new FlyOver Iceland attraction.

The Esja acquisition contains a put option that gives the minority Esja shareholders 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”) and 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 interests’ carrying value is determined by the fair market value at acquisition and the subsequent noncontrolling interests’ share of net income or loss. This value is benchmarked against the redemption value of the sellers’ put option. The carrying value is adjusted to the latter, provided that it does not fall below the initial carrying values, as determined by the purchase price allocation. We have made a policy election to reflect any changes caused by such an adjustment in retained earnings, rather than in current earnings.

 

Changes in redeemable noncontrolling interests are as follows:

(in thousands)

 

 

 

 

Balance at December 31, 2016

 

$

 

Redeemable noncontrolling interest related to 2017 acquisition

 

 

6,735

 

Adjustment to the redemption value

 

 

(30

)

Foreign currency translation adjustment

 

 

(57

)

Balance at December 31, 2017

 

$

6,648

 

 

Segment Information
Segment Information

Note 22. Segment Information

We measure the profit and performance of our operations on the basis of segment operating income which excludes restructuring charges and impairment 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.

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

 

 

 

 

 

 

Year Ended December 31,

 

(in thousands)

 

2017

 

 

2016

 

 

2015

 

Revenue:

 

 

 

 

 

 

 

 

 

 

 

 

GES:

 

 

 

 

 

 

 

 

 

 

 

 

U.S.

 

$

872,154

 

 

$

826,408

 

 

$

720,882

 

International

 

 

282,712

 

 

 

248,503

 

 

 

272,634

 

Intersegment eliminations

 

 

(21,769

)

 

 

(20,172

)

 

 

(16,638

)

Total GES

 

 

1,133,097

 

 

 

1,054,739

 

 

 

976,878

 

Pursuit

 

 

173,868

 

 

 

153,364

 

 

 

112,170

 

Corporate eliminations (1)

 

 

 

 

 

(3,133

)

 

 

 

Total revenue

 

$

1,306,965

 

 

$

1,204,970

 

 

$

1,089,048

 

Segment operating income:

 

 

 

 

 

 

 

 

 

 

 

 

GES:

 

 

 

 

 

 

 

 

 

 

 

 

U.S.

 

$

34,494

 

 

$

40,524

 

 

$

14,563

 

International

 

 

15,475

 

 

 

9,699

 

 

 

12,211

 

Total GES

 

 

49,969

 

 

 

50,223

 

 

 

26,774

 

Pursuit

 

 

47,082

 

 

 

35,705

 

 

 

27,810

 

Segment operating income

 

 

97,051

 

 

 

85,928

 

 

 

54,584

 

Corporate eliminations (1)

 

 

67

 

 

 

(743

)

 

 

 

Corporate activities

 

 

(12,877

)

 

 

(10,322

)

 

 

(9,720

)

Operating income

 

 

84,241

 

 

 

74,863

 

 

 

44,864

 

Interest income

 

 

319

 

 

 

1,165

 

 

 

658

 

Interest expense

 

 

(8,304

)

 

 

(5,898

)

 

 

(4,535

)

Restructuring recoveries (charges):

 

 

 

 

 

 

 

 

 

 

 

 

GES U.S.

 

 

354

 

 

 

(2,893

)

 

 

(541

)

GES International

 

 

(1,061

)

 

 

(1,559

)

 

 

(1,813

)

Pursuit

 

 

(86

)

 

 

(171

)

 

 

(200

)

Corporate

 

 

(211

)

 

 

(560

)

 

 

(402

)

Impairment recoveries (charges):

 

 

 

 

 

 

 

 

 

 

 

 

Pursuit

 

 

29,098

 

 

 

(218

)

 

 

(96

)

Income from continuing operations before income taxes

 

$

104,350

 

 

$

64,729

 

 

$

37,935

 

(1)

Corporate eliminations during 2017 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. Corporate eliminations recorded during 2016 represent the elimination of intercompany revenue and profit realized by GES for work completed on renovations to Pursuit’s Banff Gondola.

 

 

 

December 31,

 

(in thousands)

 

2017

 

 

2016

 

 

2015

 

Assets:

 

 

 

 

 

 

 

 

 

 

 

 

GES:

 

 

 

 

 

 

 

 

 

 

 

 

U.S.

 

$

380,909

 

 

$

380,951

 

 

$

294,618

 

International

 

 

135,917

 

 

 

109,705

 

 

 

115,494

 

Pursuit

 

 

350,256

 

 

 

301,941

 

 

 

195,527

 

Corporate and other

 

 

52,817

 

 

 

77,219

 

 

 

85,084

 

 

 

$

919,899

 

 

$

869,816

 

 

$

690,723

 

Depreciation and amortization:

 

 

 

 

 

 

 

 

 

 

 

 

GES:

 

 

 

 

 

 

 

 

 

 

 

 

U.S.

 

$

29,088

 

 

$

21,473

 

 

$

18,658

 

International

 

 

8,176

 

 

 

8,092

 

 

 

8,435

 

Pursuit

 

 

17,653

 

 

 

12,967

 

 

 

7,974

 

Corporate and other

 

 

197

 

 

 

211

 

 

 

164

 

 

 

$

55,114

 

 

$

42,743

 

 

$

35,231

 

Capital expenditures:

 

 

 

 

 

 

 

 

 

 

 

 

GES:

 

 

 

 

 

 

 

 

 

 

 

 

U.S.

 

$

17,337

 

 

$

14,291

 

 

$

8,066

 

International

 

 

8,084

 

 

 

5,033

 

 

 

8,366

 

Pursuit

 

 

30,786

 

 

 

31,861

 

 

 

13,107

 

Corporate and other(1)

 

 

414

 

 

 

(1,370

)

 

 

300

 

 

 

$

56,621

 

 

$

49,815

 

 

$

29,839

 

(1)

The 2016 amount includes an intercompany elimination for work completed by GES on renovations to Pursuit’s Banff Gondola.

Geographic Areas

Our foreign operations are located principally in Canada, the United Kingdom, Germany, the United Arab Emirates and the Netherlands. GES revenue is designated as domestic or foreign based on the originating location of the product or service. Long-lived assets are attributed to domestic or foreign based principally on the physical location of the assets. Long-lived assets consist of “Property and equipment, net” and “Other investments and assets.” The table below presents the financial information by major geographic area:

 

 

 

December 31,

 

(in thousands)

 

2017

 

 

2016

 

 

2015

 

Revenue:

 

 

 

 

 

 

 

 

 

 

 

 

United States

 

$

913,210

 

 

$

855,304

 

 

$

726,436

 

EMEA

 

 

209,824

 

 

 

205,028

 

 

 

220,046

 

Canada

 

 

183,931

 

 

 

144,638

 

 

 

142,566

 

Total revenue

 

$

1,306,965

 

 

$

1,204,970

 

 

$

1,089,048

 

Long-lived assets:

 

 

 

 

 

 

 

 

 

 

 

 

United States

 

$

180,345

 

 

$

182,611

 

 

$

139,479

 

EMEA

 

 

43,630

 

 

 

37,083

 

 

 

15,714

 

Canada

 

 

129,108

 

 

 

104,461

 

 

 

71,677

 

Total long-lived assets

 

$

353,083

 

 

$

324,155

 

 

$

226,870

 

 

Common Stock Repurchases
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. No open market repurchases were made during 2017 or 2016. During 2015, we repurchased 141,462 shares on the open market for $3.8 million. As of December 31, 2017, 440,540 shares remain available for repurchase. We repurchased 41,532 shares for $2.1 million in 2017, 25,432 shares for $0.7 million in 2016, and 35,649 shares for $1.0 million in 2015 related to tax withholding requirements on vested share-based awards.

Selected Quarterly Financial Information (Unaudited)
Condensed Consolidated Quarterly Results (Unaudited)

Note 24. Selected Quarterly Financial Information (Unaudited)

The following table sets forth selected unaudited consolidated quarterly financial information:

 

 

 

2017

 

 

2016

 

(in thousands, except per share data)

 

First

Quarter

 

 

Second

Quarter

 

 

Third

Quarter

 

 

Fourth

Quarter

 

 

First

Quarter

 

 

Second

Quarter

 

 

Third

Quarter

 

 

Fourth

Quarter

 

Revenue:

 

$

325,807

 

 

$

364,774

 

 

$

339,099

 

 

$

277,285

 

 

$

241,362

 

 

$

324,747

 

 

$

382,465

 

 

$

256,396

 

Operating income (loss):

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Ongoing operations (1)

 

$

12,684

 

 

$

39,402

 

 

$

47,066

 

 

$

(4,726

)

 

$

(6,280

)

 

$

34,014

 

 

$

58,917

 

 

$

(1,466

)

Corporate activities

 

 

(2,610

)

 

 

(3,008

)

 

 

(4,474

)

 

 

(2,785

)

 

 

(1,911

)

 

 

(2,707

)

 

 

(2,772

)

 

 

(2,932

)

Restructuring charges

 

 

(394

)

 

 

(168

)

 

 

(255

)

 

 

(187

)

 

 

(992

)

 

 

(975

)

 

 

(1,697

)

 

 

(1,519

)

Impairment recoveries (charges)

 

 

2,384

 

 

 

2,247

 

 

 

24,467

 

 

 

 

 

 

 

 

 

 

 

 

(120

)

 

 

(98

)

Operating income (loss)

 

$

12,064

 

 

$

38,473

 

 

$

66,804

 

 

$

(7,698

)

 

$

(9,183

)

 

$

30,332

 

 

$

54,328

 

 

$

(6,015

)

Income (loss) from continuing operations attributable to Viad

 

$

7,593

 

 

$

27,438

 

 

$

44,758

 

 

$

(21,814

)

 

$

(6,797

)

 

$

19,873

 

 

$

34,013

 

 

$

(4,136

)

Net income (loss) attributable to Viad

 

$

6,777

 

 

$

27,947

 

 

$

44,657

 

 

$

(21,674

)

 

$

(6,983

)

 

$

19,509

 

 

$

33,792

 

 

$

(4,049

)

Basic and Diluted income (loss) per common share: (2)

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Continuing operations attributable to Viad

 

$

0.37

 

 

$

1.35

 

 

$

2.19

 

 

$

(1.08

)

 

$

(0.34

)

 

$

0.98

 

 

$

1.68

 

 

$

(0.21

)

Net income (loss) attributable to Viad common stockholders

 

$

0.33

 

 

$

1.37

 

 

$

2.19

 

 

$

(1.07

)

 

$

(0.35

)

 

$

0.96

 

 

$

1.67

 

 

$

(0.20

)

 

(1)

Represents revenue less costs of services and cost of products sold.

(2)

The sum of quarterly income per share amounts may not equal annual income per share due to rounding.

Schedule II - Valuation And Qualifying Accounts
Schedule II - Valuation and Qualifying Accounts

VIAD CORP

SCHEDULE II – VALUATION AND QUALIFYING ACCOUNTS

 

 

 

 

 

 

 

Additions

 

 

Deductions

 

 

 

 

 

 

 

 

 

(in thousands)

 

Balance at Beginning of Year

 

 

Charged to

Expense

 

 

Charged to

Other Accounts

 

 

Write-Offs

 

 

Other(1)

 

 

Balance at End of Year

 

Allowances for doubtful accounts:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

December 31, 2015

 

 

1,258

 

 

 

955

 

 

 

574

 

 

 

(1,162

)

 

 

(32

)

 

 

1,593

 

December 31, 2016

 

 

1,593

 

 

 

1,355

 

 

 

41

 

 

 

(1,602

)

 

 

(45

)

 

 

1,342

 

December 31, 2017

 

 

1,342

 

 

 

2,470

 

 

49

 

 

 

(1,529

)

 

 

(309

)

 

 

2,023

 

Deferred tax valuation allowance:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

December 31, 2015

 

 

3,295

 

 

 

 

 

 

402

 

 

 

(860

)

 

 

 

 

 

2,837

 

December 31, 2016

 

 

2,837

 

 

 

1,406

 

 

 

 

 

 

(176

)

 

 

(69

)

 

 

3,998

 

December 31, 2017

 

 

3,998

 

 

 

1,385

 

 

 

 

 

 

(1,595

)

 

 

222

 

 

 

4,010

 

 

(1)

“Other” primarily includes foreign exchange translation adjustments.

Overview and Summary of Significant Accounting Policies (Policies)

Basis of Presentation and Principles of Consolidation

The accompanying consolidated financial statements of Viad have been prepared in accordance with accounting principles generally accepted in the United States of America (“GAAP”) and include the accounts of Viad and its subsidiaries. All significant intercompany account balances and transactions have been eliminated in consolidation.

Nature of Business

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

GES

GES is a global, full-service provider for live events that produces exhibitions, conferences, corporate events, and consumer events. GES offers a comprehensive range of live event services and a full suite of audio-visual services from creative and technology to content and design, along with online tools powered by next generation technologies that help clients easily manage the complexities of their events.

GES’ clients include event organizers and corporate brand marketers. Event organizers schedule and run the event 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.

Pursuit

Pursuit is a collection of iconic natural and cultural destination travel experiences that enjoy perennial demand. Pursuit is comprised of four lines of business: Hospitality, Attractions, Transportation, and Travel Planning. These four lines of business work together, driving economies of scope and meaningful scale in and around the iconic destinations of Banff, Jasper, and Waterton Lakes National Parks and Vancouver in Canada, and Glacier, Denali, and Kenai Fjords National Parks in the United States. Pursuit is comprised of Brewster Travel Canada, which is marketed as the Banff Jasper Collection; the Alaska Collection; Glacier Park, Inc., which is marketed as the Glacier Park Collection, and FlyOver.

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 in the redemption value of redeemable noncontrolling interests; and allocation of purchase price of acquired businesses. Actual results could differ from these and other estimates.

Cash and Cash Equivalents

Cash equivalents are highly-liquid investments with remaining maturities when purchased of three months or less. Cash and cash equivalents consist of cash and bank demand deposits and money market mutual funds. Investments in money market mutual funds are classified as available-for-sale and carried at fair value.

Allowances for Doubtful Accounts

Allowances for doubtful accounts reflect the best estimate of probable losses inherent in the accounts receivable balance. The allowances for doubtful accounts, including a sales allowance for discounts at the time of sale, are based upon an evaluation of the aging of receivables, historical trends, and the current economic environment.

Inventories

Inventories, which consist primarily of exhibit design and construction materials and supplies, as well as deferred show costs, including labor, show purchases, and commissions used in providing convention show services, are stated at the lower of cost (first-in, first-out and specific identification methods) or net realizable value.

Property and Equipment

Property and equipment are stated at cost, net of accumulated depreciation. Property and equipment are depreciated using the straight-line method over the estimated useful lives of the assets: buildings, 15 to 40 years; equipment, 3 to 12 years; and leasehold improvements, over the shorter of the lease term or useful life. Property and equipment are tested for potential impairment whenever events or changes in circumstances indicate that the carrying amount of the long-lived asset may not be recoverable through undiscounted cash flows.

Capitalized Software

Certain internal and external costs incurred in developing or obtaining internal use software are capitalized. Capitalized costs principally relate to costs incurred to purchase software from third parties, external direct costs of materials and services, and certain payroll-related costs for employees directly associated with software projects once application development begins. Costs associated with preliminary project activities, training, and other post-implementation activities are expensed as incurred. Capitalized software costs are amortized using the straight-line method over the estimated useful lives of the software, ranging from three to ten years. These costs are included in the Consolidated Balance Sheets under the caption “Property and equipment, net.”

Goodwill

Goodwill is tested for impairment at the reporting unit level on an annual basis as of October 31, and between annual tests if an event occurs or circumstances change that would more-likely-than-not reduce the fair value of a reporting unit below its carrying value. We use a discounted expected future cash flow methodology (income approach) in order to estimate the fair value of our reporting units for purposes of goodwill impairment testing. The estimates and assumptions regarding expected future cash flows, discount rates, and terminal values require considerable judgment and are based on market conditions, financial forecasts, industry trends, and historical experience. These estimates, however, have inherent uncertainties and different assumptions could lead to materially different results.

Cash Surrender Value of Life Insurance

We have Company-owned life insurance contracts which are intended to fund the cost of certain employee compensation and benefit programs. These contracts are carried at cash surrender value, net of outstanding policy loans. The cash surrender value represents the amount of cash we could receive if the policies were discontinued before maturity. The changes in the cash surrender value of the policies, net of insurance premiums, are included as a component of “Costs of Services” in the Consolidated Statements of Operations.

Self-Insurance Liabilities

We are self-insured up to certain limits for workers’ compensation, automobile, product and general liability, property loss, and medical claims. We retained certain liabilities related to workers’ compensation and general liability insurance claims in conjunction with previously sold operations. Provisions for losses for claims incurred, including estimated claims incurred but not yet reported, are made based on historical experience, claims frequency, insurance coverage, and other factors. We purchased insurance for amounts in excess of the self-insured levels.

Environmental Remediation Liabilities

Environmental remediation liabilities represent the estimated cost of environmental remediation obligations primarily associated with previously sold operations. The amounts accrued primarily consist of the estimated direct incremental costs, on an undiscounted basis, for contractor and other services related to remedial actions and post-remediation site monitoring. Environmental remediation liabilities are recorded when the specific obligation is considered probable and the costs are reasonably estimable. Subsequent recoveries from third parties, if any, are recorded through discontinued operations when realized. Environmental insurance is maintained that provides coverage for new and undiscovered pre-existing conditions at both our continuing and discontinued operations.

Fair Value of Financial Instruments

The carrying value of cash and cash equivalents, receivables, and accounts payable approximate fair value due to the short-term maturities of these instruments. Refer to Note 11 – Debt and Capital Lease Obligations for the estimated fair value of debt obligations.

Non-redeemable Noncontrolling Interest and Redeemable Noncontrolling Interest

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

Noncontrolling interests with redemption features that are not solely within our control are considered redeemable noncontrolling interests. The Esja purchase 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 Consolidated Balance Sheets. The amount of the net income or loss attributable to redeemable noncontrolling interests is recorded to retained earnings and is included in our earnings per share. Refer to Note 21 – Redeemable Noncontrolling Interest for additional information.

Foreign Currency Translation

Our foreign operations are primarily in Canada, the United Kingdom, the Netherlands, Germany, and to a lesser extent, in certain other countries. The functional currency of our foreign subsidiaries is their local currency. Accordingly, for purposes of consolidation, we translate the assets and liabilities of our foreign subsidiaries into U.S. dollars at the foreign exchange rates in effect at the balance sheet date. The unrealized gains or losses resulting from the translation of these foreign denominated assets and liabilities are included as a component of accumulated other comprehensive income (loss) in the Consolidated Balance Sheets. For purposes of consolidation, revenue, expenses, gains, and losses related to our foreign operations are translated into U.S. dollars at the average foreign exchange rates for the period.

Revenue Recognition

Revenue is recognized when persuasive evidence of an arrangement exists, delivery has occurred or services have been rendered, the sales price is fixed or determinable, and collectability is reasonably assured. GES derives revenue primarily by providing core services, event technology services, and audio-visual services to event organizers and exhibitors participating in live events. GES derives revenue from consumer events by charging visitors to view the touring exhibitions. Exhibition and event service’s revenue is recognized when services are completed, net of commissions. Exhibits and environments revenue is accounted for using the completed-contract method. Pursuit generates revenue through its hospitality, attractions, transportation, and travel planning services. Pursuit’s revenue is recognized at the time services are performed.

Insurance Recoveries

Receipts from insurance up to the amount of the recognized losses are considered recoveries and are accounted for when they are probable of receipt. Anticipated proceeds in excess of the recognized loss are considered a gain contingency. A contingency gain for anticipated insurance proceeds in excess of losses already recognized is not recognized until all contingencies relating to the insurance claim have been resolved.

Insurance proceeds allocated to business interruption gains are reported as cash flows from operating activities, and proceeds allocated to impairment recoveries are reported as cash flows from investing activities. Insurance proceeds used for capitalizable costs are classified as cash flows from investing activities, and proceeds used for non-capitalizable costs are classified as operating activities.

On December 29, 2016, the Mount Royal Hotel was damaged by a fire and closed. During the fourth quarter of 2016, we recorded an asset impairment loss of $2.2 million and an offsetting impairment recovery (and related insurance receivable) as the losses related to the fire were covered by our property and business interruption insurance. During July 2017, we resolved our property and business interruption insurance claims for a total of $36.3 million. We allocated $2.2 million to an insurance receivable, $29.3 million was recorded as an impairment recovery (partially offset by impairment charges of $0.2 million) related to construction costs to re-open the hotel, $2.5 million was recorded as a business interruption gain for the recovery of lost profits, $1.3 million was recorded as contra-expense to offset non-capitalizable costs incurred, and the remaining $1.0 million was recorded as deferred revenue, which will be recognized over the periods when the business interruption losses are actually incurred.

Share-Based Compensation

Share-based compensation costs, related to all share-based payment awards, are recognized and measured using the fair value method of accounting. These awards generally include restricted stock, liability-based awards (including performance units and restricted stock units), and stock options, and contain forfeiture and non-compete provisions.

The fair value of restricted stock awards is based on our closing stock price on the date of grant. We issue restricted stock awards from shares held in treasury. Future vesting of restricted stock is generally subject to continued employment. Holders of restricted stock have the right to receive dividends and vote the shares, but may not sell, assign, transfer, pledge, or otherwise encumber the stock, except to the extent restrictions have lapsed and in accordance with our stock trading policy.

Restricted stock awards vest between three and five years from the date of grant. Share-based compensation expense related to restricted stock is recognized using the straight-line method over the requisite service period of approximately three years. For awards with a five-year vesting period, expense is recognized based on an accelerated multiple-award approach over a five-year period. For these awards, 40% of the shares vest on the third anniversary of the grant and the remaining shares vest in 30% increments over the subsequent two anniversary dates.

Liability-based awards (including performance units and restricted stock units) are recorded at estimated fair value, based on the number of units expected to vest and where applicable, the level of achievement of predefined performance goals. These awards are remeasured on each balance sheet date based on our stock price, and the Monte Carlo simulation model, until the time of settlement. A Monte Carlo simulation requires the use of a number of assumptions, including historical volatility and correlation of our stock price and the price of the common shares of a comparator group, a risk-free rate of return, and an expected term. To the extent earned, liability-based awards are settled in cash based on our stock price. Compensation expense related to liability-based awards is recognized ratably over the requisite service period of approximately three years.

Equity-based awards (including performance units) are recorded at estimated fair value, based on the number of units expected to vest and the level of achievement of predefined performance goals, until the time of settlement. To the extent earned, equity-based awards are settled in our common stock. Compensation expense related to equity-based awards is recognized ratably over the requisite service period of approximately three years.

The fair value of stock option grants is estimated on the date of grant using the Black-Scholes option pricing model. Share-based compensation expense related to stock option awards is recognized using the straight-line method over the requisite service period of approximately five years. The exercise price of stock options is based on the market value of our common stock at the date of grant. We have not granted stock options since 2010.

Common Stock in Treasury

Common stock purchased for treasury is recorded at historical cost. Subsequent share reissuances are primarily related to share-based compensation programs and recorded at weighted-average cost.

Income Per Common Share

We apply the two-class method in calculating income per common share as unvested share-based payment awards that contain nonforfeitable rights to dividends are considered participating securities. Accordingly, such securities are included in the earnings allocation in calculating income per share. The adjustment to the carrying value of the redeemable noncontrolling interest is reflected in income per common share.

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 2014-09, Revenue from Contracts with Customers (Topic 606)

 

The standard establishes a new recognition model that requires revenue to be recognized in a manner to depict the transfer of goods or services to a customer at an amount that reflects the consideration expected to be received in exchange for those goods or services. We may adopt either retrospectively to each prior period presented with the option to elect certain practical expedients or with the cumulative effect recognized at the date of initial application and providing certain disclosures.

 

Subsequent to the issuance of ASU 2014-09, the FASB issued several amendments in 2016 which do not change the core principle of the guidance stated in ASU 2014-09. Rather, they are intended to clarify and improve understanding of certain topics included within the revenue standard.

 

January 1, 2018

 

We assigned internal resources and engaged a third-party service provider to assist in evaluating the impact on our accounting policies, processes, and system requirements. Based on our assessment, the adoption of this standard will not have a material impact on our consolidated financial statements. The impact primarily relates to the deferral of certain commissions which were previously expensed as incurred but will generally be capitalized and amortized over the period of contract performance, and the deferral of certain costs incurred in connection with trade shows which were previously expensed as incurred but will generally be capitalized and expensed upon the completion of the show. We adopted the standard on January 1, 2018 and will be using the modified retrospective transition method. Additionally, the new guidance requires enhanced disclosures, including revenue recognition policies to identify performance obligations to customers and significant judgments in measurement and recognition.

ASU 2016-02, Leases (Topic 842)

 

The amendment requires lessees to recognize on their balance sheet a right-of-use asset and a lease liability for leases with lease terms greater than one year. The amendment requires additional disclosures about leasing arrangements, and requires a modified retrospective approach to adoption. Early adoption is permitted.

 

January 1, 2019

 

We are currently evaluating the potential impact the adoption of this new guidance will have on our financial position or results of operations including analyzing our existing operating leases. Based on our current assessment, the adoption of this standard will have a material impact on our Consolidated Balance Sheets, however the income statement is not expected to be materially impacted. We expect the most significant impact will relate to facility and equipment leases, which are currently recorded as operating leases. We are continuing our assessment, which may identify other impacts. We will adopt the standard on January 1, 2019.

ASU 2017-04, Intangibles - Goodwill and Other (Topic 350) - Simplifying the Test for Goodwill Impairment

 

The amendment eliminates the requirement to estimate the implied fair value of goodwill if it was determined that the carrying amount of a reporting unit exceeded its fair value. Goodwill impairment will now be recognized by the amount by which a reporting unit’s carrying value exceeds its fair value, not to exceed the carrying amount of goodwill. The amendment should be applied prospectively and is effective for annual or any interim goodwill impairment tests in fiscal years beginning after December 15, 2019. Early adoption is permitted for interim or annual goodwill impairment tests performed on testing dates after January 1, 2017.

 

January 1, 2020

 

The adoption of this new guidance is not expected to have a significant effect on our consolidated financial statements and we expect the adoption to reduce the complexity surrounding the analysis of goodwill impairment.

 

Standard

 

Description

 

Date of adoption

 

Effect on the financial statements

Standards Recently Adopted

ASU 2016-09, Compensation - Stock Compensation (Topic 718) - Improvements to Employee Share-Based Payment Accounting

 

The amendment identifies areas for simplification involving several aspects of accounting for share-based payment transactions, including the income tax consequences, classification of awards as either equity or liabilities, an option to recognize gross stock compensation expense with actual forfeitures recognized as they occur, as well as certain classifications on the statement of cash flows.

 

January 1, 2017

 

The adoption of this new guidance resulted in a decrease in tax expense of $1.1 million, or a 1.1% decrease in our effective tax rate, as compared to 2016.

 

Share-Based Compensation (Tables)

The following table summarizes share-based compensation expense:

 

 

Year Ended December 31,

 

(in thousands)

 

2017

 

 

2016

 

 

2015

 

Performance unit incentive plan (“PUP”)

 

$

8,088

 

 

$

5,703

 

 

$

1,692

 

Restricted stock

 

 

2,594

 

 

 

2,073

 

 

 

2,111

 

Restricted stock units

 

 

287

 

 

 

262

 

 

 

45

 

Share-based compensation before income tax benefit

 

 

10,969

 

 

 

8,038

 

 

 

3,848

 

Income tax benefit

 

 

(4,079

)

 

 

(2,988

)

 

 

(1,454

)

Share-based compensation, net of income tax benefit

 

$

6,890

 

 

$

5,050

 

 

$

2,394

 

 

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, 2016

 

 

255,505

 

 

$

26.11

 

 

 

267,051

 

 

$

25.96

 

 

 

15,982

 

 

$

25.58

 

Granted

 

 

73,557

 

 

$

47.44

 

 

 

67,029

 

 

$

46.99

 

 

 

2,950

 

 

$

47.45

 

Vested

 

 

(76,082

)

 

$

24.07

 

 

 

(112,548

)

 

$

24.04

 

 

 

(6,182

)

 

$

24.97

 

Forfeited

 

 

(13,642

)

 

$

34.99

 

 

 

(14,633

)

 

$

35.31

 

 

 

 

 

$

 

Balance at December 31, 2017

 

 

239,338

 

 

$

32.80

 

 

 

206,899

 

 

$

33.16

 

 

 

12,750

 

 

$

30.94

 

 

The following table provides additional stock option information:

 

 

December 31,

 

(in thousands)

 

2017

 

 

2016

 

 

2015

 

Total intrinsic value of stock options outstanding(1)

 

$

2,473

 

 

$

1,753

 

 

$

740

 

Total intrinsic value of stock options exercised

 

$

 

 

$

 

 

$

1,474

 

Cash received from the exercise of stock options

 

$

 

 

$

 

 

$

898

 

Tax benefits realized for tax deductions related to stock option exercises

 

$

 

 

$

 

 

$

104

 

(1)

The intrinsic value of stock options outstanding represents the difference between our closing stock price on December 31 of each year and the exercise price, multiplied by the number of in-the-money stock options.

Acquisition of Businesses (Tables)

The following table summarizes the final allocation of the aggregate purchase price paid and amounts of assets acquired and liabilities assumed based upon the estimated fair value at the date of acquisitions. The balances in the table below remain unchanged from the balances reflected in the Consolidated Balance Sheets in our Annual Report on Form 10-K for the year ended December 31, 2016.

 

 

 

Maligne Lake Tours

 

 

CATC

 

 

ON Services

 

 

FlyOver Canada

 

(in thousands)

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Purchase price paid as:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Cash

 

$

14,962

 

 

$

45,000

 

 

$

87,000

 

 

$

50,920

 

Working capital adjustment

 

 

 

 

 

(35

)

 

 

344

 

 

 

 

Contingent consideration

 

 

 

 

 

 

 

 

540

 

 

 

 

Cash acquired

 

 

 

 

 

(2,196

)

 

 

 

 

 

(6

)

Total purchase price, net of cash acquired

 

 

14,962

 

 

 

42,769

 

 

 

87,884

 

 

 

50,914

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Fair value of net assets acquired:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Accounts receivable

 

 

 

 

 

8

 

 

 

4,643

 

 

 

 

Inventories

 

 

246

 

 

 

921

 

 

 

256

 

 

 

11

 

Prepaid expenses

 

 

2

 

 

 

82

 

 

 

872

 

 

 

37

 

Property and equipment

 

 

4,133

 

 

 

43,470

 

 

 

14,827

 

 

 

10,867

 

Intangible assets

 

 

9,244

 

 

 

980

 

 

 

33,990

 

 

 

6,028

 

Total assets acquired

 

 

13,625

 

 

 

45,461

 

 

 

54,588

 

 

 

16,943

 

Accounts payable

 

 

 

 

 

306

 

 

 

992

 

 

 

 

Accrued liabilities

 

 

 

 

 

434

 

 

 

564

 

 

 

118

 

Customer deposits

 

 

15

 

 

 

1,952

 

 

 

851

 

 

 

 

Other liabilities

 

 

240

 

 

 

 

 

 

274

 

 

 

 

Total liabilities acquired

 

 

255

 

 

 

2,692

 

 

 

2,681

 

 

 

118

 

Total fair value of net assets acquired

 

 

13,370

 

 

 

42,769

 

 

 

51,907

 

 

 

16,825

 

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

 

$

1,592

 

 

$

 

 

$

35,977

 

 

$

34,089

 

 

Following are the details of the purchase price allocated to the intangible assets acquired for the 2016 Acquisitions:

(in thousands, except weighted average life)

 

Maligne Lake Tours

 

 

CATC

 

 

ON Services

 

 

FlyOver Canada

 

Customer relationships

 

$

788

 

 

$

780

 

 

$

27,620

 

 

$

1,592

 

Operating licenses

 

 

8,313

 

 

 

 

 

 

 

 

 

 

Trade name

 

 

143

 

 

 

200

 

 

 

3,190

 

 

 

3,710

 

Non-compete agreements

 

 

 

 

 

 

 

 

3,180

 

 

 

726

 

Fair value of intangible assets acquired

 

$

9,244

 

 

$

980

 

 

$

33,990

 

 

$

6,028

 

Weighted average life

 

26.7 years(1)

 

 

5.8 years

 

 

10.5 years

 

 

9.4 years

 

(1)

Largely attributable to operating licenses amortized over the remaining Parks Canada lease of 29 years.

The following table summarizes our unaudited pro forma results of operations assuming the 2016 Acquisitions had each been completed on January 1, 2015:

 

 

Year Ended December 31,

 

(in thousands, except per share data)

 

2016

 

 

2015

 

Revenue

 

$

1,250,290

 

 

$

1,183,656

 

Depreciation and amortization

 

$

52,074

 

 

$

52,631

 

Income from continuing operations

 

$

43,727

 

 

$

27,881

 

Net income attributable to Viad

 

$

42,517

 

 

$

27,045

 

Diluted income per share

 

$

2.10

 

 

$

1.35

 

Basic income per share

 

$

2.10

 

 

$

1.35

 

 

Inventories (Tables)
Components of Inventories

The components of inventories consisted of the following:

 

 

 

December 31,

 

(in thousands)

 

2017

 

 

2016

 

Raw materials

 

$

17,550

 

 

$

16,846

 

Work in process

 

 

12,822

 

 

 

14,574

 

Inventories

 

$

30,372

 

 

$

31,420

 

 

Other Current Assets (Tables)
Schedule of Other Current Assets

Other current assets consisted of the following:

 

 

December 31,

 

(in thousands)

 

2017

 

 

2016

 

Prepaid vendor payments

 

$

5,048

 

 

$

3,633

 

Income tax receivable

 

 

4,237

 

 

 

3,614

 

Prepaid software maintenance

 

 

3,386

 

 

 

2,804

 

Prepaid insurance

 

 

2,610

 

 

 

2,479

 

Prepaid taxes

 

 

912

 

 

 

850

 

Prepaid rent

 

 

730

 

 

 

327

 

Prepaid other

 

 

2,172

 

 

 

731

 

Other

 

 

1,935

 

 

 

4,011

 

Other current assets

 

$

21,030

 

 

$

18,449

 

 

Property and Equipment (Tables)
Schedule of Property and Equipment

Property and equipment consisted of the following:

 

 

 

December 31,

 

(in thousands)

 

2017

 

 

2016

 

Land and land interests(1)

 

$

32,544

 

 

$

31,670

 

Buildings and leasehold improvements

 

 

222,118

 

 

 

185,987

 

Equipment and other(2)

 

 

351,676

 

 

 

326,868

 

Gross property and equipment

 

 

606,338

 

 

 

544,525

 

Accumulated depreciation

 

 

(300,767

)

 

 

(264,667

)

Property and equipment, net

 

$

305,571

 

 

$

279,858

 

 

Other Investments and Assets (Tables)
Summary of Other Investments and Assets

Other investments and assets consisted of the following:

 

 

December 31,

 

(in thousands)

 

2017

 

 

2016

 

Cash surrender value of life insurance

 

$

23,947

 

 

$

23,197

 

Self-insured liability receivable

 

 

10,442

 

 

 

10,463

 

Workers’ compensation insurance security deposits

 

 

3,550

 

 

 

4,050

 

Other mutual funds

 

 

2,637

 

 

 

2,062

 

Other

 

 

6,936

 

 

 

4,525

 

Other investments and assets

 

$

47,512

 

 

$

44,297

 

 

Goodwill and Other Intangible Assets (Tables)

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

(in thousands)

 

GES U.S.

 

 

GES International

 

 

Pursuit

 

 

Total

 

Balance at December 31, 2015

 

$

112,300

 

 

$

38,635

 

 

$

34,288

 

 

$

185,223

 

Business acquisitions

 

 

35,977

 

 

 

 

 

 

35,681

 

 

 

71,658

 

Foreign currency translation adjustments

 

 

 

 

 

(4,175

)

 

 

1,316

 

 

 

(2,859

)

Balance at December 31, 2016

 

 

148,277

 

 

 

34,460

 

 

 

71,285

 

 

 

254,022

 

Business acquisitions

 

 

 

 

 

1,060

 

 

 

7,094

 

 

 

8,154

 

Foreign currency translation adjustments

 

 

 

 

 

3,320

 

 

 

5,055

 

 

 

8,375

 

Balance at December 31, 2017

 

$

148,277

 

 

$

38,840

 

 

$

83,434

 

 

$

270,551

 

 

The following table summarizes goodwill by reporting unit and segment:

 

 

December 31,

 

(in thousands)

 

2017

 

 

2016

 

GES:

 

 

 

 

 

 

 

 

U.S.

 

$

148,277

 

 

$

148,277

 

International:

 

 

 

 

 

 

 

 

GES EMEA

 

 

31,612

 

 

 

27,694

 

GES Canada

 

 

7,228

 

 

 

6,766

 

Total GES

 

 

187,117

 

 

 

182,737

 

Pursuit:

 

 

 

 

 

 

 

 

Banff Jasper Collection

 

 

35,305

 

 

 

32,587

 

Alaska Collection

 

 

3,184

 

 

 

3,184

 

Glacier Park Collection

 

 

1,268

 

 

 

1,268

 

FlyOver

 

 

43,677

 

 

 

34,246

 

Total Pursuit

 

 

83,434

 

 

 

71,285

 

Total Goodwill

 

$

270,551

 

 

$

254,022

 

 

Other intangible assets consisted of the following:

 

 

December 31, 2017

 

 

December 31, 2016

 

(in thousands)

 

Gross Carrying

Value

 

 

Accumulated

Amortization

 

 

Net Carrying Value

 

 

Gross Carrying

Value

 

 

Accumulated

Amortization

 

 

Net Carrying Value

 

Amortized intangible assets:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Customer contracts and relationships

 

$

68,798

 

 

$

(23,696

)

 

$

45,102

 

 

$

67,762

 

 

$

(14,345

)

 

$

53,417

 

Operating contracts and licenses

 

 

9,951

 

 

 

(1,094

)

 

 

8,857

 

 

 

9,315

 

 

 

(652

)

 

 

8,663

 

Tradenames

 

 

8,633

 

 

 

(2,873

)

 

 

5,760

 

 

 

8,324

 

 

 

(1,440

)

 

 

6,884

 

Non-compete agreements

 

 

5,363

 

 

 

(3,007

)

 

 

2,356

 

 

 

5,190

 

 

 

(1,369

)

 

 

3,821

 

Other

 

 

896

 

 

 

(650

)

 

 

246

 

 

 

886

 

 

 

(458

)

 

 

428

 

Total amortized intangible assets

 

 

93,641

 

 

 

(31,320

)

 

 

62,321

 

 

 

91,477

 

 

 

(18,264

)

 

 

73,213

 

Unamortized intangible assets:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Business licenses

 

 

460

 

 

 

 

 

 

460

 

 

 

460

 

 

 

 

 

 

460

 

Other intangible assets

 

$

94,101

 

 

$

(31,320

)

 

$

62,781

 

 

$

91,937

 

 

$

(18,264

)

 

$

73,673

 

 

The estimated future amortization expense related to amortized intangible assets held at December 31, 2017 is as follows:

 

(in thousands)

 

 

 

 

Year ending December 31,

 

 

 

 

2018

 

$

11,013

 

2019

 

 

9,945

 

2020

 

 

8,444

 

2021

 

 

7,447

 

2022

 

 

5,895

 

Thereafter

 

 

19,577

 

Total

 

$

62,321

 

 

Other Current Liabilities (Tables)
Other Current Liabilities

Other current liabilities consisted of the following:

 

 

 

December 31,

 

(in thousands)

 

2017

 

 

2016

 

Continuing operations:

 

 

 

 

 

 

 

 

Accrued income tax payable

 

$

7,518

 

 

$

758

 

Self-insured liability accrual

 

 

6,208

 

 

 

5,941

 

Commissions payable

 

 

3,235

 

 

 

639

 

Accrued employee benefit costs

 

 

2,915

 

 

 

2,624

 

Accrued sales and use taxes

 

 

2,431

 

 

 

4,279

 

Accrued dividends

 

 

2,094

 

 

 

2,119

 

Current portion of pension and postretirement liabilities

 

 

2,109

 

 

 

1,963

 

Deferred rent

 

 

1,679

 

 

 

1,535

 

Accrued rebates

 

 

1,106

 

 

 

1,078

 

Accrued professional fees

 

 

1,020

 

 

 

794

 

Accrued restructuring

 

 

722

 

 

 

1,924

 

Other taxes

 

 

2,750

 

 

 

4,210

 

Other

 

 

3,852

 

 

 

1,774

 

Total continuing operations

 

 

37,639

 

 

 

29,638

 

Discontinued operations:

 

 

 

 

 

 

 

 

Environmental remediation liabilities

 

 

648

 

 

 

492

 

Self-insured liability accrual

 

 

337

 

 

 

162

 

Other

 

 

96

 

 

 

98

 

Total discontinued operations

 

 

1,081

 

 

 

752

 

Total other current liabilities

 

$

38,720

 

 

$

30,390

 

 

Other Deferred Items and Liabilities (Tables)
Summary of Other Deferred Items and Liabilities

Other deferred items and liabilities consisted of the following:

 

 

December 31,

 

(in thousands)

 

2017

 

 

2016

 

Continuing operations:

 

 

 

 

 

 

 

 

Self-insured liability

 

$

12,918

 

 

$

12,981

 

Self-insured excess liability

 

 

10,442

 

 

 

10,463

 

Accrued compensation

 

 

9,740

 

 

 

8,514

 

Foreign deferred tax liability

 

 

8,267

 

 

 

2,264

 

Deferred rent

 

 

3,855

 

 

 

5,271

 

Accrued restructuring

 

 

1,827

 

 

 

1,858

 

Other

 

 

1,305

 

 

 

1,300

 

Total continuing operations

 

 

48,354

 

 

 

42,651

 

Discontinued operations:

 

 

 

 

 

 

 

 

Self-insured liability

 

 

2,557

 

 

 

3,748

 

Environmental remediation liabilities

 

 

1,728

 

 

 

3,091

 

Accrued income taxes

 

 

 

 

 

1,045

 

Other

 

 

219

 

 

 

199

 

Total discontinued operations

 

 

4,504

 

 

 

8,083

 

Total other deferred items and liabilities

 

$

52,858

 

 

$

50,734

 

 

Debt and Capital Lease Obligations (Tables)

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

 

 

December 31,

 

(in thousands, except interest rates)

 

2017

 

 

2016

 

Revolving credit facility and term loan, 3.1% weighted-average interest rate at

  December 31, 2017 and 2.6% at December 31, 2016, due through 2019 (1)

 

$

207,322

 

 

$

212,750

 

Brewster Inc. revolving credit facility, 2.7% weighted-average interest rate at

  December 31, 2016 (1)

 

 

 

 

 

36,456

 

Less unamortized debt issuance costs

 

 

(984

)

 

 

(1,464

)

Total debt

 

 

206,338

 

 

 

247,742

 

Capital lease obligations, 3.8% weighted-average interest rate at December 31,

  2017 and 4.9% at December 31, 2016, due through 2021

 

 

2,854

 

 

 

1,469

 

Total debt and capital lease obligations

 

 

209,192

 

 

 

249,211

 

Current portion (2)

 

 

(152,599

)

 

 

(174,968

)

Long-term debt and capital lease obligations

 

$

56,593

 

 

$

74,243

 

(1)

Represents the weighted-average interest rate in effect at the respective periods for the revolving credit facilities and term loan borrowings, including any applicable margin. The interest rates do not include amortization of debt issuance costs or commitment fees.

(2)

Borrowings under the revolving credit facilities are classified as current because all borrowed amounts are due within one year.

Aggregate annual maturities of long-term debt and capital lease obligations as of December 31, 2017 are as follows:

 

(in thousands)

 

Revolving Credit

Agreement

 

 

Capital Lease

Obligations

 

Year ending December 31,

 

 

 

 

 

 

 

 

2018

 

$

151,072

 

 

$

1,601

 

2019

 

 

56,250

 

 

 

899

 

2020

 

 

 

 

 

454

 

2021

 

 

 

 

 

17

 

2022

 

 

 

 

 

 

Total

 

$

207,322

 

 

$

2,971

 

Less: Amount representing interest

 

 

 

 

 

 

(117

)

Present value of minimum lease payments

 

 

 

 

 

$

2,854

 

 

Fair Value Measurements (Tables)
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)

 

December 31, 2017

 

 

Quoted Prices in

Active

Markets

(Level 1)

 

 

Significant

Other

Observable

Inputs

(Level 2)

 

 

Significant

Unobservable

Inputs

(Level 3)

 

Assets:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Money market funds(1)

 

$

119

 

 

$

119

 

 

$

 

 

$

 

Other mutual funds(2)

 

 

2,637

 

 

 

2,637

 

 

 

 

 

 

 

Total assets at fair value on a recurring basis

 

$

2,756

 

 

$

2,756

 

 

$

 

 

$

 

 

 

 

 

 

 

 

Fair Value Measurements at Reporting Date Using

 

(in thousands)

 

December 31, 2016

 

 

Quoted Prices

in Active

Markets

(Level 1)

 

 

Significant

Other

Observable

Inputs

(Level 2)

 

 

Significant

Unobservable

Inputs

(Level 3)

 

Assets:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Money market funds(1)

 

$

118

 

 

$

118

 

 

$

 

 

$

 

Other mutual funds(2)

 

 

2,062

 

 

 

2,062

 

 

 

 

 

 

 

Total assets at fair value on a recurring basis

 

$

2,180

 

 

$

2,180

 

 

$

 

 

$

 

(1)

Money market funds are included in “Cash and cash equivalents” in the 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 Consolidated Balance Sheets. These investments are classified as available-for-sale and are recorded at fair value. Unrealized gains of $1.0 million ($0.6 million after-tax) as of December 31, 2017 and $0.7 million ($0.4 million after tax) as of December 31, 2016 are included in “Accumulated other comprehensive income (loss)” (“AOCI”) in the Consolidated Balance Sheets.

Income Per Share (Tables)
Reconciliation of Basic and Diluted Income Per Share

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

 

 

 

 

 

 

Year Ended December 31,

 

(in thousands, except per share data)

 

2017

 

 

2016

 

 

2015

 

Net income attributable to Viad (diluted)

 

$

57,707

 

 

$

42,269

 

 

$

26,606

 

Less: Allocation to non-vested shares

 

 

(700

)

 

 

(571

)

 

 

(385

)

Adjustment to carrying value of redeemable noncontrolling interest

 

 

 

 

 

 

 

 

 

Net income allocated to Viad common stockholders (basic)

 

$

57,007

 

 

$

41,698

 

 

$

26,221

 

Basic weighted-average outstanding common shares

 

 

20,146

 

 

 

19,990

 

 

 

19,797

 

Additional dilutive shares related to share-based compensation

 

 

259

 

 

 

187

 

 

 

184

 

Diluted weighted-average outstanding shares

 

 

20,405

 

 

 

20,177

 

 

 

19,981

 

Income per share:

 

 

 

 

 

 

 

 

 

 

 

 

Basic income attributable to Viad common stockholders

 

$

2.83

 

 

$

2.09

 

 

$

1.32

 

Diluted income attributable to Viad common stockholders

 

$

2.83

 

 

$

2.09

 

 

$

1.32

 

 

Accumulated Other Comprehensive Income (Loss) (Tables)

Changes in AOCI by component are as follows:

(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, 2015

 

$

346

 

 

$

(23,257

)

 

$

(11,265

)

 

$

(34,176

)

Other comprehensive income (loss) before reclassifications

 

 

135

 

 

 

(5,827

)

 

 

 

 

 

(5,692

)

Amounts reclassified from AOCI, net of tax

 

 

(60

)

 

 

 

 

 

537

 

 

 

477

 

Net other comprehensive income (loss)

 

 

75

 

 

 

(5,827

)

 

 

537

 

 

 

(5,215

)

Balance at December 31, 2016

 

$

421

 

 

$

(29,084

)

 

$

(10,728

)

 

$

(39,391

)

Other comprehensive income before reclassifications

 

 

257

 

 

 

17,058

 

 

 

 

 

 

17,315

 

Amounts reclassified from AOCI, net of tax

 

 

(62

)

 

 

 

 

 

(430

)

 

 

(492

)

Net other comprehensive income (loss)

 

 

195

 

 

 

17,058

 

 

 

(430

)

 

 

16,823

 

Balance at December 31, 2017

 

$

616

 

 

$

(12,026

)

 

$

(11,158

)

 

$

(22,568

)

 

The following table presents information about reclassification adjustments out of AOCI:

 

 

Year Ended December 31,

 

 

Affected Line Item in the

Statement Where Net

Income is Presented

(in thousands)

 

2017

 

 

2016

 

 

 

Unrealized gains on investments

 

$

(100

)

 

$

(97

)

 

Interest income

Tax effect

 

 

38

 

 

 

37

 

 

Income taxes

 

 

$

(62

)

 

$

(60

)

 

 

 

 

 

 

 

 

 

 

 

 

 

Recognized net actuarial loss (gains)(1)

 

$

507

 

 

$

1,440

 

 

 

Amortization of prior service credit(1)

 

 

(1,247

)

 

 

(575

)

 

 

Tax effect

 

 

310

 

 

 

(328

)

 

Income taxes

 

 

$

(430

)

 

$

537

 

 

 

(1)

Amount included in pension expense. Refer to Note 17 – Pension and Postretirement Benefits.

Income Taxes (Tables)

Income from continuing operations before income taxes consisted of the following: 

 

 

Year Ended December 31,

 

(in thousands)

 

2017

 

 

2016

 

 

2015

 

Foreign

 

$

82,919

 

 

$

33,611

 

 

$

35,571

 

United States

 

 

21,431

 

 

 

31,118

 

 

 

2,364

 

Income from continuing operations before income taxes

 

$

104,350

 

 

$

64,729

 

 

$

37,935

 

 

Significant components of the income tax provision from continuing operations are as follows:

 

 

Year Ended December 31,

 

(in thousands)

 

2017

 

 

2016

 

 

2015

 

Current:

 

 

 

 

 

 

 

 

 

 

 

 

United States:

 

 

 

 

 

 

 

 

 

 

 

 

Federal

 

$

1,693

 

 

$

3,685

 

 

$

(876

)

State

 

 

2,573

 

 

 

1,716

 

 

 

1,558

 

Foreign

 

 

15,583

 

 

 

8,177

 

 

 

9,342

 

Total current

 

 

19,849

 

 

 

13,578

 

 

 

10,024

 

Deferred:

 

 

 

 

 

 

 

 

 

 

 

 

United States:

 

 

 

 

 

 

 

 

 

 

 

 

Federal

 

 

19,893

 

 

 

8,427

 

 

 

1,854

 

State

 

 

1,761

 

 

 

(598

)

 

 

(164

)

Foreign

 

 

4,395

 

 

 

(157

)

 

 

(1,221

)

Total deferred

 

 

26,049

 

 

 

7,672

 

 

 

469

 

Income tax expense

 

$

45,898

 

 

$

21,250

 

 

$

10,493

 

 

 

 

Year Ended December 31,

 

(in thousands)

 

2017

 

 

2016

 

 

2015

 

Computed income tax expense at statutory federal income tax rate of 35%

 

$

36,522

 

 

 

35.0

%

 

$

22,655

 

 

 

35.0

%

 

$

13,277

 

 

 

35.0

%

State income taxes, net of federal benefit

 

 

1,160

 

 

 

1.1

%

 

 

292

 

 

 

0.5

%

 

 

1,713

 

 

 

4.5

%

Deemed mandatory repatriation state tax

 

 

1,206

 

 

 

1.2

%

 

 

 

 

 

 

 

 

 

 

 

 

Deemed mandatory repatriation federal tax, net of foreign tax credit

 

 

6,936

 

 

 

6.6

%

 

 

 

 

 

 

 

 

 

 

 

 

Remeasurement of deferred taxes due to reduction in U.S. tax rate *

 

 

8,000

 

 

 

7.7

%

 

 

 

 

 

 

 

 

 

 

 

 

Foreign tax rate differential

 

 

(5,031

)

 

 

(4.8

)%

 

 

(882

)

 

 

(1.4

)%

 

 

(1,181

)

 

 

(3.1

)%

U.S. tax on current year foreign earnings, net of foreign tax credits

 

 

(2,726

)

 

 

(2.6

)%

 

 

(373

)

 

 

(0.6

)%

 

 

(948

)

 

 

(2.5

)%

Change in valuation allowance

 

 

(796

)

 

 

(0.8

)%

 

 

1,230

 

 

 

1.9

%

 

 

(944

)

 

 

(2.5

)%

Other adjustments, net

 

 

627

 

 

 

0.6

%

 

 

(1,672

)

 

 

(2.6

)%

 

 

(1,424

)

 

 

(3.7

)%

Income tax expense

 

$

45,898

 

 

 

44.0

%

 

$

21,250

 

 

 

32.8

%

 

$

10,493

 

 

 

27.7

%

 

* Includes $0.6 million increase to the valuation allowance related to the remeasurement of deferred taxes due to the reduction in U.S. tax rate.

The components of deferred income tax assets and liabilities included in the Consolidated Balance Sheets are as follows:

 

 

 

December 31,

 

(in thousands)

 

2017

 

 

2016

 

Deferred tax assets:

 

 

 

 

 

 

 

 

Tax credit carryforwards

 

$

6,654

 

 

$

11,380

 

Pension, compensation, and other employee benefits

 

 

15,173

 

 

 

22,868

 

Provisions for losses

 

 

5,826

 

 

 

10,235

 

Net operating loss carryforward

 

 

5,195

 

 

 

5,023

 

State income taxes

 

 

2,502

 

 

 

3,790

 

Other deferred income tax assets

 

 

2,796

 

 

 

5,020

 

Total deferred tax assets

 

 

38,146

 

 

 

58,316

 

Valuation allowance

 

 

(4,010

)

 

 

(3,998

)

Foreign deferred tax assets included above

 

 

(2,396

)

 

 

(1,972

)

Net deferred tax assets

 

 

31,740

 

 

 

52,346

 

Deferred tax liabilities:

 

 

 

 

 

 

 

 

Property and equipment

 

 

(10,530

)

 

 

(3,299

)

Deferred tax related to life insurance

 

 

(3,556

)

 

 

(5,642

)

Goodwill and other intangible assets

 

 

(4,299

)

 

 

(4,535

)

Other deferred income tax liabilities

 

 

(463

)

 

 

(557

)

Total deferred tax liabilities

 

 

(18,848

)

 

 

(14,033

)

Foreign deferred tax liabilities included above

 

 

7,869

 

 

 

2,852

 

United States net deferred tax assets

 

$

20,761

 

 

$

41,165

 

 

 

(in thousands)

 

Continuing

Operations

 

 

Discontinued

Operations

 

 

Total

 

Balance at December 31, 2014

 

$

1,283

 

 

$

636

 

 

$

1,919

 

Additions for tax positions taken in prior years

 

 

43

 

 

 

 

 

 

43

 

Reductions for tax positions taken in prior years

 

 

(666

)

 

 

 

 

 

(666

)

Reductions for lapse of applicable statutes

 

 

(353

)

 

 

 

 

 

(353

)

Balance at December 31, 2015

 

 

307

 

 

 

636

 

 

 

943

 

Additions for tax positions taken in prior years

 

 

1,295

 

 

 

 

 

 

1,295

 

Reductions for lapse of applicable statutes

 

 

(43

)

 

 

 

 

 

(43

)

Balance at December 31, 2016

 

 

1,559

 

 

 

636

 

 

 

2,195

 

Additions for tax positions taken in prior years

 

 

43

 

 

 

 

 

 

43

 

Reductions for lapse of applicable statutes

 

 

(177

)

 

 

(636

)

 

 

(813

)

Balance at December 31, 2017

 

$

1,425

 

 

$

 

 

$

1,425

 

 

Pension and Postretirement Benefits (Tables)

The components of net periodic benefit cost and other amounts recognized in other comprehensive income (loss) of our pension plans consist of the following:

 

 

December 31,

 

(in thousands)

 

2017

 

 

2016

 

 

2015

 

Net periodic benefit cost:

 

 

 

 

 

 

 

 

 

 

 

 

Service cost

 

$

64

 

 

$

98

 

 

$

101

 

Interest cost

 

 

803

 

 

 

1,032

 

 

 

1,018

 

Expected return on plan assets

 

 

(176

)

 

 

(256

)

 

 

(380

)

Recognized net actuarial loss

 

 

433

 

 

 

423

 

 

 

492

 

Net periodic benefit cost

 

 

1,124

 

 

 

1,297

 

 

 

1,231

 

Other changes in plan assets and benefit obligations recognized in other

   comprehensive income (loss):

 

 

 

 

 

 

 

 

 

 

 

 

Net actuarial loss (gain)

 

 

114

 

 

 

1

 

 

 

(963

)

Reversal of amortization item:

 

 

 

 

 

 

 

 

 

 

 

 

Net actuarial loss

 

 

(433

)

 

 

(423

)

 

 

(492

)

Total recognized in other comprehensive income (loss)

 

 

(319

)

 

 

(422

)

 

 

(1,455

)

Total recognized in net periodic benefit cost and other

   comprehensive income (loss)

 

$

805

 

 

$

875

 

 

$

(224

)

The components of net periodic benefit cost and other amounts recognized in other comprehensive income (loss) of our postretirement benefit plans consist of the following:

 

 

December 31,

 

(in thousands)

 

2017

 

 

2016

 

 

2015

 

Net periodic benefit cost:

 

 

 

 

 

 

 

 

 

 

 

 

Service cost

 

$

92

 

 

$

99

 

 

$

152

 

Interest cost

 

 

413

 

 

 

573

 

 

 

619

 

Amortization of prior service credit

 

 

(431

)

 

 

(503

)

 

 

(552

)

Recognized net actuarial loss

 

 

164

 

 

 

295

 

 

 

528

 

Net periodic benefit cost

 

 

238

 

 

 

464

 

 

 

747

 

Other changes in plan assets and benefit obligations recognized in other

   comprehensive income (loss):

 

 

 

 

 

 

 

 

 

 

 

 

Net actuarial loss (gain)

 

 

237

 

 

 

(790

)

 

 

(1,248

)

Prior service credit

 

 

816

 

 

 

73

 

 

 

3

 

Reversal of amortization item:

 

 

 

 

 

 

 

 

 

 

 

 

Net actuarial loss

 

 

(164

)

 

 

(295

)

 

 

(528

)

Prior service credit

 

 

431

 

 

 

503

 

 

 

552

 

Total recognized in other comprehensive income (loss)

 

 

1,320

 

 

 

(509

)

 

 

(1,221

)

Total recognized in net periodic benefit cost and other

   comprehensive income (loss)

 

$

1,558

 

 

$

(45

)

 

$

(474

)

The components of net periodic benefit cost and other amounts recognized in other comprehensive income (loss) included the following:

 

 

December 31,

 

(in thousands)

 

2017

 

 

2016

 

 

2015

 

Net periodic benefit cost:

 

 

 

 

 

 

 

 

 

 

 

 

Service cost

 

$

530

 

 

$

488

 

 

$

503

 

Interest cost

 

 

492

 

 

 

488

 

 

 

505

 

Expected return on plan assets

 

 

(602

)

 

 

(558

)

 

 

(583

)

Recognized net actuarial loss

 

 

155

 

 

 

162

 

 

 

160

 

Settlement

 

 

777

 

 

 

 

 

 

 

Net periodic benefit cost

 

 

1,352

 

 

 

580

 

 

 

585

 

Other changes in plan assets and benefit obligations recognized in other

   comprehensive income (loss):

 

 

 

 

 

 

 

 

 

 

 

 

Net actuarial loss

 

 

(106

)

 

 

158

 

 

 

182

 

Reversal of amortization of net actuarial loss

 

 

(155

)

 

 

(162

)

 

 

(160

)

Total recognized in other comprehensive income (loss)

 

 

(261

)

 

 

(4

)

 

 

22

 

Total recognized in net periodic benefit cost and other

   comprehensive income

 

$

1,091

 

 

$

576

 

 

$

607

 

 

The following table indicates the funded status of the plans as of December 31:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Postretirement

 

 

 

Funded Plans

 

 

Unfunded Plans

 

 

Benefit Plans

 

(in thousands)

 

2017

 

 

2016

 

 

2017

 

 

2016

 

 

2017

 

 

2016

 

Change in benefit obligation:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Benefit obligation at beginning of year

 

$

15,027

 

 

$

14,906

 

 

$

9,825

 

 

$

10,049

 

 

$

13,619

 

 

$

14,573

 

Service cost

 

 

 

 

 

 

 

 

64

 

 

 

97

 

 

 

92

 

 

 

99

 

Interest cost

 

 

492

 

 

 

629

 

 

 

311

 

 

 

403

 

 

 

413

 

 

 

573

 

Actuarial adjustments

 

 

618

 

 

 

240

 

 

 

175

 

 

 

(221

)

 

 

237

 

 

 

(790

)

Plan amendments

 

 

 

 

 

 

 

 

 

 

 

 

 

 

816

 

 

 

73

 

Benefits paid

 

 

(697

)

 

 

(748

)

 

 

(518

)

 

 

(503

)

 

 

(1,370

)

 

 

(909

)

Benefit obligation at end of year

 

 

15,440

 

 

 

15,027

 

 

 

9,857

 

 

 

9,825

 

 

 

13,807

 

 

 

13,619

 

Change in plan assets:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Fair value of plan assets at beginning of year

 

 

10,416

 

 

 

10,479

 

 

 

 

 

 

 

 

 

 

 

 

 

Actual return on plan assets

 

 

855

 

 

 

273

 

 

 

 

 

 

 

 

 

 

 

 

 

Company contributions

 

 

1,016

 

 

 

412

 

 

 

518

 

 

 

503

 

 

 

1,370

 

 

 

909

 

Benefits paid

 

 

(697

)

 

 

(748

)

 

 

(518

)

 

 

(503

)

 

 

(1,370

)

 

 

(909

)

Fair value of plan assets at end of year

 

 

11,590

 

 

 

10,416

 

 

 

 

 

 

 

 

 

 

 

 

 

Funded status at end of year

 

$

(3,850

)

 

$

(4,611

)

 

$

(9,857

)

 

$

(9,825

)

 

$

(13,807

)

 

$

(13,619

)

The following table represents the funded status of the plans as of December 31:

 

 

Funded Plans

 

 

Unfunded Plans

 

(in thousands)

 

2017

 

 

2016

 

 

2017

 

 

2016

 

Change in benefit obligation:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Benefit obligation at beginning of year

 

$

10,488

 

 

$

9,744

 

 

$

2,486

 

 

$

2,470

 

Service cost

 

 

530

 

 

 

488

 

 

 

 

 

 

 

Interest cost

 

 

406

 

 

 

400

 

 

 

87

 

 

 

87

 

Actuarial adjustments

 

 

658

 

 

 

395

 

 

 

(54

)

 

 

105

 

Benefits paid

 

 

(3,231

)

 

 

(818

)

 

 

(182

)

 

 

(177

)

Translation adjustment

 

 

670

 

 

 

279

 

 

 

245

 

 

 

1

 

Benefit obligation at end of year

 

 

9,521

 

 

 

10,488

 

 

 

2,582

 

 

 

2,486

 

Change in plan assets:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Fair value of plan assets at beginning of year

 

 

10,576

 

 

 

9,705

 

 

 

 

 

 

 

Actual return on plan assets

 

 

764

 

 

 

617

 

 

 

 

 

 

 

Company contributions

 

 

710

 

 

 

795

 

 

 

182

 

 

 

177

 

Benefits paid

 

 

(3,231

)

 

 

(818

)

 

 

(182

)

 

 

(177

)

Translation adjustment

 

 

674

 

 

 

277

 

 

 

 

 

 

 

Fair value of plan assets at end of year

 

 

9,493

 

 

 

10,576

 

 

 

 

 

 

 

Funded status at end of year

 

$

(28

)

 

$

88

 

 

$

(2,582

)

 

$

(2,486

)

 

The net amounts recognized in the Consolidated Balance Sheets under the caption “Pension and postretirement benefits” as of December 31 are as follows:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Postretirement

 

 

 

Funded Plans

 

 

Unfunded Plans

 

 

Benefit Plans

 

(in thousands)

 

2017

 

 

2016

 

 

2017

 

 

2016

 

 

2017

 

 

2016

 

Other current liabilities

 

$

 

 

$

 

 

$

809

 

 

$

699

 

 

$

1,112

 

 

$

1,094

 

Non-current liabilities

 

 

3,850

 

 

 

4,611

 

 

 

9,048

 

 

 

9,126

 

 

 

12,695

 

 

 

12,525

 

Net amount recognized

 

$

3,850

 

 

$

4,611

 

 

$

9,857

 

 

$

9,825

 

 

$

13,807

 

 

$

13,619

 

 

The net amounts recognized in the Consolidated Balance Sheets under the caption “Pension and postretirement benefits” as of December 31 were as follows:

 

 

Funded Plans

 

 

Unfunded Plans

 

(in thousands)

 

2017

 

 

2016

 

 

2017

 

 

2016

 

Non-current assets

 

$

(15

)

 

$

(88

)

 

$

 

 

$

 

Other current liabilities

 

 

 

 

 

 

 

 

188

 

 

 

170

 

Non-current liabilities

 

 

43

 

 

 

 

 

 

2,394

 

 

 

2,316

 

Net amount recognized

 

$

28

 

 

$

(88

)

 

$

2,582

 

 

$

2,486

 

 

Amounts recognized in AOCI as of December 31 are as follows:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Postretirement

 

 

 

 

 

 

 

 

 

 

 

Funded Plans

 

 

Unfunded Plans

 

 

Benefit Plans

 

 

Total

 

 

Total

 

(in thousands)

 

2017

 

 

2016

 

 

2017

 

 

2016

 

 

2017

 

 

2016

 

 

2017

 

 

2016

 

Net actuarial loss

 

$

8,681

 

 

$

9,090

 

 

$

2,587

 

 

$

2,496

 

 

$

2,784

 

 

$

2,710

 

 

$

14,052

 

 

$

14,296

 

Prior service credit

 

 

 

 

 

 

 

 

 

 

 

 

 

 

(351

)

 

 

(1,598

)

 

 

(351

)

 

 

(1,598

)

Subtotal

 

 

8,681

 

 

 

9,090

 

 

 

2,587

 

 

 

2,496

 

 

 

2,433

 

 

 

1,112

 

 

 

13,701

 

 

 

12,698

 

Less tax effect

 

 

(3,292

)

 

 

(3,447

)

 

 

(981

)

 

 

(947

)

 

 

(923

)

 

 

(422

)

 

 

(5,196

)

 

 

(4,816

)

Total

 

$

5,389

 

 

$

5,643

 

 

$

1,606

 

 

$

1,549

 

 

$

1,510

 

 

$

690

 

 

$

8,505

 

 

$

7,882

 

 

The fair value of the domestic plans’ assets by asset class are as follows:

 

 

 

 

 

 

Fair Value Measurements at December 31, 2017

 

 

 

 

 

 

 

Quoted Prices

in Active

Markets

 

 

Significant

Other

Observable

Inputs

 

 

Significant

Unobservable

Inputs

 

(in thousands)

 

Total

 

 

(Level 1)

 

 

(Level 2)

 

 

(Level 3)

 

Domestic pension plans:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Fixed income securities

 

$

5,787

 

 

$

5,787

 

 

$

 

 

$

 

Equity securities

 

 

5,390

 

 

 

5,390

 

 

 

 

 

 

 

Cash

 

 

214

 

 

 

214

 

 

 

 

 

 

 

Other

 

 

199

 

 

 

 

 

 

199

 

 

 

 

Total

 

$

11,590

 

 

$

11,391

 

 

$

199

 

 

$

 

 

 

 

 

 

 

 

Fair Value Measurements at December 31, 2016

 

 

 

 

 

 

 

Quoted Prices

in Active

Markets

 

 

Significant

Other

Observable

Inputs

 

 

Significant

Unobservable

Inputs

 

(in thousands)

 

Total

 

 

(Level 1)

 

 

(Level 2)

 

 

(Level 3)

 

Domestic pension plans:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Fixed income securities

 

$

5,352

 

 

$

5,352

 

 

$

 

 

$

 

Equity securities

 

 

4,580

 

 

 

4,580

 

 

 

 

 

 

 

Cash

 

 

280

 

 

 

280

 

 

 

 

 

 

 

Other

 

 

204

 

 

 

 

 

 

204

 

 

 

 

Total

 

$

10,416

 

 

$

10,212

 

 

$

204

 

 

$

 

The fair value information related to the foreign pension plans’ assets is summarized in the following tables:

 

 

 

 

 

 

 

Fair Value Measurements at Reporting Date Using

 

(in thousands)

 

December 31, 2017

 

 

Quoted Prices

in Active

Markets

(Level 1)

 

 

Significant

Other

Observable

Inputs

(Level 2)

 

 

Significant

Unobserved

Inputs

(Level 3)

 

Assets:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Fixed income securities

 

$

4,414

 

 

$

4,414

 

 

$

 

 

$

 

Equity securities

 

 

4,889

 

 

 

4,466

 

 

 

423

 

 

 

 

Other

 

 

190

 

 

 

190

 

 

 

 

 

 

 

Total

 

$

9,493

 

 

$

9,070

 

 

$

423

 

 

$

 

 

 

 

 

 

 

 

Fair Value Measurements at Reporting Date Using

 

(in thousands)

 

December 31, 2016

 

 

Quoted Prices

in Active

Markets

(Level 1)

 

 

Significant

Other

Observable

Inputs

(Level 2)

 

 

Significant

Unobserved

Inputs

(Level 3)

 

Assets:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Fixed income securities

 

$

4,082

 

 

$

4,082

 

 

$

 

 

$

 

Equity securities

 

 

4,518

 

 

 

4,130

 

 

 

388

 

 

 

 

Other

 

 

1,976

 

 

 

1,976

 

 

 

 

 

 

 

Total

 

$

10,576

 

 

$

10,188

 

 

$

388

 

 

$

 

 

The following pension and postretirement benefit payments, which reflect expected future service, as appropriate, are expected to be paid:

(in thousands)

 

Funded

Plans

 

 

Unfunded

Plans

 

 

Postretirement

Benefit

Plans

 

2018

 

$

1,434

 

 

$

823

 

 

$

1,132

 

2019

 

$

927

 

 

$

738

 

 

$

1,127

 

2020

 

$

997

 

 

$

740

 

 

$

1,100

 

2021

 

$

921

 

 

$

725

 

 

$

1,066

 

2022

 

$

990

 

 

$

709

 

 

$

1,039

 

2023-2027

 

$

4,859

 

 

$

3,259

 

 

$

4,685

 

The following payments, which reflect expected future service, as appropriate, are expected to be paid:

(in thousands)

 

Funded

Plans

 

 

Unfunded

Plans

 

2018

 

$

365

 

 

$

191

 

2019

 

$

376

 

 

$

190

 

2020

 

$

378

 

 

$

190

 

2021

 

$

396

 

 

$

190

 

2022

 

$

496

 

 

$

189

 

2023-2027

 

$

2,499

 

 

$

935

 

 

The accumulated benefit obligations in excess of plan assets as of December 31 were as follows:

 

 

Domestic Plans

 

 

 

Funded Plans

 

 

Unfunded Plans

 

(in thousands)

 

2017

 

 

2016

 

 

2017

 

 

2016

 

Projected benefit obligation

 

$

15,440

 

 

$

15,027

 

 

$

9,857

 

 

$

9,825

 

Accumulated benefit obligation

 

$

15,440

 

 

$

15,027

 

 

$

9,826

 

 

$

9,737

 

Fair value of plan assets

 

$

11,590

 

 

$

10,416

 

 

$

 

 

$

 

 

 

 

Foreign Plans

 

 

 

Funded Plans

 

 

Unfunded Plans

 

(in thousands)

 

2017

 

 

2016

 

 

2017

 

 

2016

 

Projected benefit obligation

 

$

9,521

 

 

$

10,488

 

 

$

2,582

 

 

$

2,486

 

Accumulated benefit obligation

 

$

8,819

 

 

$

9,906

 

 

$

2,582

 

 

$

2,486

 

Fair value of plan assets

 

$

9,493

 

 

$

10,576

 

 

$

 

 

$

 

 

Weighted-average assumptions used to determine benefit obligations as of December 31 were as follows:

 

 

Domestic Plans

 

 

 

 

 

 

 

 

 

 

 

Funded Plans

 

 

Unfunded Plans

 

 

Postretirement

Benefit Plans

 

 

Foreign Plans

 

 

 

2017

 

 

2016

 

 

2017

 

 

2016

 

 

2017

 

 

2016

 

 

2017

 

 

2016

 

Discount rate

 

 

3.63

%

 

 

4.12

%

 

 

3.55

%

 

 

3.99

%

 

 

3.59

%

 

 

4.08

%

 

 

3.15

%

 

 

3.52

%

Rate of compensation increase

 

N/A

 

 

N/A

 

 

 

3.00

%

 

 

3.00

%

 

N/A

 

 

N/A

 

 

 

2.26

%

 

 

2.34

%

Weighted-average assumptions used to determine net periodic benefit costs as of December 31 were as follows:

 

 

Domestic Plans

 

 

 

 

 

 

 

 

 

 

 

Funded Plans

 

 

Unfunded Plans

 

 

Postretirement

Benefit Plans

 

 

Foreign Plans

 

 

 

2017

 

 

2016

 

 

2017

 

 

2016

 

 

2017

 

 

2016

 

 

2017

 

 

2016

 

Discount rate

 

 

4.07

%

 

 

4.33

%

 

 

3.99

%

 

 

4.25

%

 

 

4.08

%

 

 

4.30

%

 

 

3.71

%

 

 

3.77

%

Expected return on plan assets

 

 

5.50

%

 

 

2.25

%

 

N/A

 

 

N/A

 

 

 

0.00

%

 

 

0.00

%

 

 

5.09

%

 

 

4.53

%

Rate of compensation increase

 

N/A

 

 

N/A

 

 

 

3.00

%

 

 

3.00

%

 

N/A

 

 

N/A

 

 

 

2.26

%

 

 

2.34

%

 

The “FIP/RP Status Pending/Implemented” column indicates plans for which a financial improvement plan or a rehabilitation plan is either pending or has been implemented.

 

 

 

 

 

Plan

 

 

Pension

Protection Act

Zone Status

 

FIP/RP

Status

Pending/ Implemented

 

Viad Contributions

 

 

Surcharge Paid

 

Expiration

Date of

Collective-

Bargaining Agreement(s)

(in thousands)

 

EIN

 

No.

 

 

2017

 

2016

 

 

 

2017

 

 

2016

 

 

2015

 

 

 

 

 

Pension Fund:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Western Conference of  Teamsters Pension Plan

 

91-6145047

 

 

1

 

 

Green

 

Green

 

No

 

$

7,809

 

 

$

6,684

 

 

$

5,632

 

 

No

 

3/31/2020

Southern California Local 831—Employer Pension Fund(1)

 

95-6376874

 

 

1

 

 

Green

 

Green

 

No

 

 

3,087

 

 

 

2,805

 

 

 

2,485

 

 

No

 

8/31/2019

Chicago Regional Council of Carpenters Pension Fund

 

36-6130207

 

 

1

 

 

Green

 

Yellow

 

Yes

 

 

2,390

 

 

 

2,532

 

 

 

1,887

 

 

No

 

5/31/2019

IBEW Local Union  No 357 Pension Plan A

 

88-6023284

 

 

1

 

 

Green

 

Green

 

No

 

 

1,682

 

 

 

1,402

 

 

 

1,150

 

 

No

 

6/16/2018

Electrical Contractors Assoc. Chicago Local Union 134, IBEW Joint Pension Trust of Chicago Plan #2

 

51-6030753

 

 

2

 

 

Green

 

Green

 

No

 

 

1,099

 

 

 

845

 

 

 

1,190

 

 

No

 

6/6/2021

Central States, Southeast and Southwest Areas Pension Plan

 

36-6044243

 

 

1

 

 

Red

 

Red

 

Yes

 

 

1,060

 

 

 

1,151

 

 

 

948

 

 

No

 

12/31/2018

Southern California IBEW-NECA Pension Fund

 

95-6392774

 

 

1

 

 

Yellow

 

Yellow

 

Yes

 

 

905

 

 

 

701

 

 

 

835

 

 

Yes

 

continuous

Southwest Carpenters Pension Trust

 

95-6042875

 

 

1

 

 

Green

 

Green

 

No

 

 

883

 

 

 

791

 

 

 

750

 

 

No

 

6/30/2018

New England Teamsters & Trucking Industry Pension

 

04-6372430

 

 

1

 

 

Red

 

Red

 

Yes

 

 

772

 

 

 

552

 

 

 

381

 

 

No

 

3/31/2022

Machinery Movers Riggers & Mach Erect Local 136 Supplemental Retirement Plan(1)

 

36-1416355

 

 

11

 

 

Red

 

Red

 

Yes

 

 

719

 

 

 

1,203

 

 

 

502

 

 

Yes

 

6/30/2019

Sign Pictorial & Display Industry Pension Plan(1)

 

94-6278490

 

 

1

 

 

Green

 

Green

 

No

 

 

654

 

 

 

526

 

 

 

541

 

 

No

 

3/31/2018

All other funds(2)

 

 

 

 

 

 

 

 

 

 

 

 

 

 

2,900

 

 

 

3,585

 

 

 

4,259

 

 

 

 

 

Total contributions to defined benefit plans

 

 

 

 

 

 

 

 

 

 

 

 

 

 

23,960

 

 

 

22,777

 

 

 

20,560

 

 

 

 

 

Total contributions to other plans

 

 

 

 

 

 

 

 

 

 

 

 

 

 

2,613

 

 

 

2,995

 

 

 

1,428

 

 

 

 

 

Total contributions to multi-employer plans

 

 

 

 

 

 

 

 

 

 

 

 

 

$

26,573

 

 

$

25,772

 

 

$

21,988

 

 

 

 

 

(1)

We contributed more than 5% of total plan contributions for the 2016 and 2015 plan years based on the plans’ Form 5500s.

(2)

Represents participation in 35 pension funds during 2017.

Restructuring Charges (Tables)
Changes to Restructuring Liability by Major Restructuring Activity

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

 

 

GES Consolidation

 

 

Other Restructurings

 

 

 

 

 

(in thousands)

 

Severance &

Employee

Benefits

 

 

Facilities

 

 

Severance &

Employee

Benefits

 

 

Total

 

Balance at December 31, 2014

 

$

543

 

 

$

1,161

 

 

$

240

 

 

$

1,944

 

Restructuring charges

 

 

1,767

 

 

 

587

 

 

 

602

 

 

 

2,956

 

Cash payments

 

 

(1,514

)

 

 

(457

)

 

 

(601

)

 

 

(2,572

)

Adjustment to liability

 

 

(45

)

 

 

 

 

 

(7

)

 

 

(52

)

Balance at December 31, 2015

 

 

751

 

 

 

1,291

 

 

 

234

 

 

 

2,276

 

Restructuring charges

 

 

3,693

 

 

 

759

 

 

 

731

 

 

 

5,183

 

Cash payments

 

 

(2,170

)

 

 

(1,150

)

 

 

(546

)

 

 

(3,866

)

Adjustment to liability

 

 

 

 

 

192

 

 

 

(3

)

 

 

189

 

Balance at December 31, 2016

 

 

2,274

 

 

 

1,092

 

 

 

416

 

 

 

3,782

 

Restructuring charges

 

 

442

 

 

 

265

 

 

 

297

 

 

 

1,004

 

Cash payments

 

 

(1,165

)

 

 

(550

)

 

 

(538

)

 

 

(2,253

)

Adjustment to liability

 

 

 

 

 

 

 

 

16

 

 

 

16

 

Balance at December 31, 2017

 

$

1,551

 

 

$

807

 

 

$

191

 

 

$

2,549

 

 

Leases and Other (Tables)

As of December 31, 2017, our future minimum rental payments and related sublease rentals receivable with respect to non-cancelable operating leases with terms in excess of one year were as follows:

(in thousands)

 

Rental

Payments

 

 

Receivable

Under Subleases

 

2018

 

$

23,503

 

 

$

2,627

 

2019

 

 

20,299

 

 

 

2,384

 

2020

 

 

17,265

 

 

 

2,209

 

2021

 

 

8,812

 

 

 

2,267

 

2022

 

 

5,555

 

 

 

2,195

 

Thereafter

 

 

81,135

 

 

 

3,657

 

Total

 

$

156,569

 

 

$

15,339

 

 

Net rent expense under operating leases consisted of the following:

 

 

December 31,

 

(in thousands)

 

2017

 

 

2016

 

 

2015

 

Minimum rentals

 

$

56,575

 

 

$

48,465

 

 

$

41,564

 

Sublease rentals

 

 

(1,525

)

 

 

(2,831

)

 

 

(3,457

)

Total rentals, net

 

$

55,050

 

 

$

45,634

 

 

$

38,107

 

 

Redeemable Noncontrolling Interest (Tables)
Summary of Changes in Redeemable Noncontrolling Interests

Changes in redeemable noncontrolling interests are as follows:

(in thousands)

 

 

 

 

Balance at December 31, 2016

 

$

 

Redeemable noncontrolling interest related to 2017 acquisition

 

 

6,735

 

Adjustment to the redemption value

 

 

(30

)

Foreign currency translation adjustment

 

 

(57

)

Balance at December 31, 2017

 

$

6,648

 

 

Segment Information (Tables)

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

 

 

 

 

 

 

Year Ended December 31,

 

(in thousands)

 

2017

 

 

2016

 

 

2015

 

Revenue:

 

 

 

 

 

 

 

 

 

 

 

 

GES:

 

 

 

 

 

 

 

 

 

 

 

 

U.S.

 

$

872,154

 

 

$

826,408

 

 

$

720,882

 

International

 

 

282,712

 

 

 

248,503

 

 

 

272,634

 

Intersegment eliminations

 

 

(21,769

)

 

 

(20,172

)

 

 

(16,638

)

Total GES

 

 

1,133,097

 

 

 

1,054,739

 

 

 

976,878

 

Pursuit

 

 

173,868

 

 

 

153,364

 

 

 

112,170

 

Corporate eliminations (1)

 

 

 

 

 

(3,133

)

 

 

 

Total revenue

 

$

1,306,965

 

 

$

1,204,970

 

 

$

1,089,048

 

Segment operating income:

 

 

 

 

 

 

 

 

 

 

 

 

GES:

 

 

 

 

 

 

 

 

 

 

 

 

U.S.

 

$

34,494

 

 

$

40,524

 

 

$

14,563

 

International

 

 

15,475

 

 

 

9,699

 

 

 

12,211

 

Total GES

 

 

49,969

 

 

 

50,223

 

 

 

26,774

 

Pursuit

 

 

47,082

 

 

 

35,705

 

 

 

27,810

 

Segment operating income

 

 

97,051

 

 

 

85,928

 

 

 

54,584

 

Corporate eliminations (1)

 

 

67

 

 

 

(743

)

 

 

 

Corporate activities

 

 

(12,877

)

 

 

(10,322

)

 

 

(9,720

)

Operating income

 

 

84,241

 

 

 

74,863

 

 

 

44,864

 

Interest income

 

 

319

 

 

 

1,165

 

 

 

658

 

Interest expense

 

 

(8,304

)

 

 

(5,898

)

 

 

(4,535

)

Restructuring recoveries (charges):

 

 

 

 

 

 

 

 

 

 

 

 

GES U.S.

 

 

354

 

 

 

(2,893

)

 

 

(541

)

GES International

 

 

(1,061

)

 

 

(1,559

)

 

 

(1,813

)

Pursuit

 

 

(86

)

 

 

(171

)

 

 

(200

)

Corporate

 

 

(211

)

 

 

(560

)

 

 

(402

)

Impairment recoveries (charges):

 

 

 

 

 

 

 

 

 

 

 

 

Pursuit

 

 

29,098

 

 

 

(218

)

 

 

(96

)

Income from continuing operations before income taxes

 

$

104,350

 

 

$

64,729

 

 

$

37,935

 

(1)

Corporate eliminations during 2017 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. Corporate eliminations recorded during 2016 represent the elimination of intercompany revenue and profit realized by GES for work completed on renovations to Pursuit’s Banff Gondola.

 

 

December 31,

 

(in thousands)

 

2017

 

 

2016

 

 

2015

 

Assets:

 

 

 

 

 

 

 

 

 

 

 

 

GES:

 

 

 

 

 

 

 

 

 

 

 

 

U.S.

 

$

380,909

 

 

$

380,951

 

 

$

294,618

 

International

 

 

135,917

 

 

 

109,705

 

 

 

115,494

 

Pursuit

 

 

350,256

 

 

 

301,941

 

 

 

195,527

 

Corporate and other

 

 

52,817

 

 

 

77,219

 

 

 

85,084

 

 

 

$

919,899

 

 

$

869,816

 

 

$

690,723

 

Depreciation and amortization:

 

 

 

 

 

 

 

 

 

 

 

 

GES:

 

 

 

 

 

 

 

 

 

 

 

 

U.S.

 

$

29,088

 

 

$

21,473

 

 

$

18,658

 

International

 

 

8,176

 

 

 

8,092

 

 

 

8,435

 

Pursuit

 

 

17,653

 

 

 

12,967

 

 

 

7,974

 

Corporate and other

 

 

197

 

 

 

211

 

 

 

164

 

 

 

$

55,114

 

 

$

42,743

 

 

$

35,231

 

Capital expenditures:

 

 

 

 

 

 

 

 

 

 

 

 

GES:

 

 

 

 

 

 

 

 

 

 

 

 

U.S.

 

$

17,337

 

 

$

14,291

 

 

$

8,066

 

International

 

 

8,084

 

 

 

5,033

 

 

 

8,366

 

Pursuit

 

 

30,786

 

 

 

31,861

 

 

 

13,107

 

Corporate and other(1)

 

 

414

 

 

 

(1,370

)

 

 

300

 

 

 

$

56,621

 

 

$

49,815

 

 

$

29,839

 

(1)

The 2016 amount includes an intercompany elimination for work completed by GES on renovations to Pursuit’s Banff Gondola.

The table below presents the financial information by major geographic area:

 

 

December 31,

 

(in thousands)

 

2017

 

 

2016

 

 

2015

 

Revenue:

 

 

 

 

 

 

 

 

 

 

 

 

United States

 

$

913,210

 

 

$

855,304

 

 

$

726,436

 

EMEA

 

 

209,824

 

 

 

205,028

 

 

 

220,046

 

Canada

 

 

183,931

 

 

 

144,638

 

 

 

142,566

 

Total revenue

 

$

1,306,965

 

 

$

1,204,970

 

 

$

1,089,048

 

Long-lived assets:

 

 

 

 

 

 

 

 

 

 

 

 

United States

 

$

180,345

 

 

$

182,611

 

 

$

139,479

 

EMEA

 

 

43,630

 

 

 

37,083

 

 

 

15,714

 

Canada

 

 

129,108

 

 

 

104,461

 

 

 

71,677

 

Total long-lived assets

 

$

353,083

 

 

$

324,155

 

 

$

226,870

 

 

Selected Quarterly Financial Information (Unaudited) (Tables)
Quarterly financial information

The following table sets forth selected unaudited consolidated quarterly financial information:

 

 

 

2017

 

 

2016

 

(in thousands, except per share data)

 

First

Quarter

 

 

Second

Quarter

 

 

Third

Quarter

 

 

Fourth

Quarter

 

 

First

Quarter

 

 

Second

Quarter

 

 

Third

Quarter

 

 

Fourth

Quarter

 

Revenue:

 

$

325,807

 

 

$

364,774

 

 

$

339,099

 

 

$

277,285

 

 

$

241,362

 

 

$

324,747

 

 

$

382,465

 

 

$

256,396

 

Operating income (loss):

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Ongoing operations (1)

 

$

12,684

 

 

$

39,402

 

 

$

47,066

 

 

$

(4,726

)

 

$

(6,280

)

 

$

34,014

 

 

$

58,917

 

 

$

(1,466

)

Corporate activities

 

 

(2,610

)

 

 

(3,008

)

 

 

(4,474

)

 

 

(2,785

)

 

 

(1,911

)

 

 

(2,707

)

 

 

(2,772

)

 

 

(2,932

)

Restructuring charges

 

 

(394

)

 

 

(168

)

 

 

(255

)

 

 

(187

)

 

 

(992

)

 

 

(975

)

 

 

(1,697

)

 

 

(1,519

)

Impairment recoveries (charges)

 

 

2,384

 

 

 

2,247

 

 

 

24,467

 

 

 

 

 

 

 

 

 

 

 

 

(120

)

 

 

(98

)

Operating income (loss)

 

$

12,064

 

 

$

38,473

 

 

$

66,804

 

 

$

(7,698

)

 

$

(9,183

)

 

$

30,332

 

 

$

54,328

 

 

$

(6,015

)

Income (loss) from continuing operations attributable to Viad

 

$

7,593

 

 

$

27,438

 

 

$

44,758

 

 

$

(21,814

)

 

$

(6,797

)

 

$

19,873

 

 

$

34,013

 

 

$

(4,136

)

Net income (loss) attributable to Viad

 

$

6,777

 

 

$

27,947

 

 

$

44,657

 

 

$

(21,674

)

 

$

(6,983

)

 

$

19,509

 

 

$

33,792

 

 

$

(4,049

)

Basic and Diluted income (loss) per common share: (2)

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Continuing operations attributable to Viad

 

$

0.37

 

 

$

1.35

 

 

$

2.19

 

 

$

(1.08

)

 

$

(0.34

)

 

$

0.98

 

 

$

1.68

 

 

$

(0.21

)

Net income (loss) attributable to Viad common stockholders

 

$

0.33

 

 

$

1.37

 

 

$

2.19

 

 

$

(1.07

)

 

$

(0.35

)

 

$

0.96

 

 

$

1.67

 

 

$

(0.20

)

 

(1)

Represents revenue less costs of services and cost of products sold.

(2)

The sum of quarterly income per share amounts may not equal annual income per share due to rounding.

Overview and Summary of Significant Accounting Policies - Narrative (Details) (USD $)
0 Months Ended 1 Months Ended 12 Months Ended
Dec. 29, 2016
Jul. 31, 2017
Dec. 31, 2017
Overview and Summary of Significant Accounting Policies [Line Items]
 
 
 
Number of reportable segments
 
 
Remaining maturities of highly-liquid investments
 
 
three months or less 
Business interruption gain
 
 
$ 2,692,000 
Share based compensation arrangements requisite service period
 
 
3 years 
Percent of shares vest on the third anniversary of the grant
 
 
40.00% 
Percent of increments over the subsequent two anniversary dates
 
 
30.00% 
Decrease in tax expense
 
 
8,000,000 1
Decrease in tax percentage
 
 
7.70% 1
ASU 2016-09
 
 
 
Overview and Summary of Significant Accounting Policies [Line Items]
 
 
 
Decrease in tax expense
 
 
1,100,000 
Decrease in tax percentage
 
 
1.10% 
Liability Based Awards
 
 
 
Overview and Summary of Significant Accounting Policies [Line Items]
 
 
 
Share based compensation arrangements requisite service period
 
 
3 years 
Equity Based Awards
 
 
 
Overview and Summary of Significant Accounting Policies [Line Items]
 
 
 
Share based compensation arrangements requisite service period
 
 
3 years 
Other Restricted Stock
 
 
 
Overview and Summary of Significant Accounting Policies [Line Items]
 
 
 
Share based compensation arrangements requisite service period
 
 
5 years 
Stock Options
 
 
 
Overview and Summary of Significant Accounting Policies [Line Items]
 
 
 
Share based compensation arrangements requisite service period
 
 
5 years 
Stock options granted
 
 
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% 
Minimum |
Restricted Stock
 
 
 
Overview and Summary of Significant Accounting Policies [Line Items]
 
 
 
Share based compensation arrangements vesting period
 
 
3 years 
Maximum |
Restricted Stock
 
 
 
Overview and Summary of Significant Accounting Policies [Line Items]
 
 
 
Share based compensation arrangements vesting period
 
 
5 years 
Building |
Minimum
 
 
 
Overview and Summary of Significant Accounting Policies [Line Items]
 
 
 
Property, plant and equipment, useful life
 
 
15 years 
Building |
Maximum
 
 
 
Overview and Summary of Significant Accounting Policies [Line Items]
 
 
 
Property, plant and equipment, useful life
 
 
40 years 
Equipment |
Minimum
 
 
 
Overview and Summary of Significant Accounting Policies [Line Items]
 
 
 
Property, plant and equipment, useful life
 
 
3 years 
Equipment |
Maximum
 
 
 
Overview and Summary of Significant Accounting Policies [Line Items]
 
 
 
Property, plant and equipment, useful life
 
 
12 years 
Computer Software, Development Costs |
Minimum
 
 
 
Overview and Summary of Significant Accounting Policies [Line Items]
 
 
 
Property, plant and equipment, useful life
 
 
3 years 
Computer Software, Development Costs |
Maximum
 
 
 
Overview and Summary of Significant Accounting Policies [Line Items]
 
 
 
Property, plant and equipment, useful life
 
 
10 years 
Mount Royal Hotel
 
 
 
Overview and Summary of Significant Accounting Policies [Line Items]
 
 
 
Asset impairment loss
2,200,000 
 
200,000 
Property and business interruption insurance claims total
 
36,300,000 
 
Insurance proceeds allocated to insurance receivable
 
 
2,200,000 
Impairment recoveries
 
 
29,300,000 
Business interruption gain
 
 
2,500,000 
Insurance settlements to offset non capitalized costs
 
 
1,300,000 
Deferred revenue
 
 
$ 1,000,000 
Pursuit
 
 
 
Overview and Summary of Significant Accounting Policies [Line Items]
 
 
 
Number of business lines
 
 
Share-Based Compensation - Summary of Share-Based Compensation Expense (Details) (USD $)
In Thousands, unless otherwise specified
12 Months Ended
Dec. 31, 2017
Dec. 31, 2016
Dec. 31, 2015
Summary of share-based compensation expense
 
 
 
Share-based compensation before income tax benefit
$ 10,969 
$ 8,038 
$ 3,848 
Income tax benefit
(4,079)
(2,988)
(1,454)
Share-based compensation, net of income tax benefit
6,890 
5,050 
2,394 
Performance unit incentive plan (“PUP”)
 
 
 
Summary of share-based compensation expense
 
 
 
Share-based compensation before income tax benefit
8,088 
5,703 
1,692 
Restricted stock
 
 
 
Summary of share-based compensation expense
 
 
 
Share-based compensation before income tax benefit
2,594 
2,073 
2,111 
Restricted stock units
 
 
 
Summary of share-based compensation expense
 
 
 
Share-based compensation before income tax benefit
$ 287 
$ 262 
$ 45 
Share-Based Compensation - Narrative (Details) (USD $)
12 Months Ended 12 Months Ended 1 Months Ended 12 Months Ended 12 Months Ended 1 Months Ended 12 Months Ended
Dec. 31, 2017
Dec. 31, 2016
Dec. 31, 2015
Dec. 31, 2017
2017 Plan
Jun. 30, 2017
2017 Plan
Dec. 31, 2017
2007 Plan
Mar. 31, 2017
Performance unit incentive plan (“PUP”)
2007 Plan
Mar. 31, 2016
Performance unit incentive plan (“PUP”)
2007 Plan
Mar. 31, 2015
Performance unit incentive plan (“PUP”)
2007 Plan
Dec. 31, 2017
Performance unit incentive plan (“PUP”)
2007 Plan
Dec. 31, 2016
Performance unit incentive plan (“PUP”)
2007 Plan
Dec. 31, 2017
Restricted Stock
2007 Plan
Dec. 31, 2016
Restricted Stock
2007 Plan
Dec. 31, 2015
Restricted Stock
2007 Plan
Feb. 28, 2017
Restricted Stock Units
2007 Plan
Feb. 29, 2016
Restricted Stock Units
2007 Plan
Feb. 28, 2015
Restricted Stock Units
2007 Plan
Dec. 31, 2017
Restricted Stock Units
2007 Plan
Dec. 31, 2016
Restricted Stock Units
2007 Plan
Dec. 31, 2017
Stock Options
2007 Plan
Dec. 31, 2016
Stock Options
2007 Plan
Dec. 31, 2017
Restructuring Charges
Performance unit incentive plan (“PUP”)
Dec. 31, 2016
Restructuring Charges
Performance unit incentive plan (“PUP”)
Dec. 31, 2015
Restructuring Charges
Performance unit incentive plan (“PUP”)
Employee Service Share Based Compensation Allocation Of Recognized Period Costs [Line Items]
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Share-based compensation before income tax benefit
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
$ 100,000 
$ 200,000 
$ 45,000 
Capitalized share-based compensation costs
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Useful Life of the plan
 
 
 
10 years 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Common stock shares issuable
 
 
 
 
1,750,000 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Shares available for grant
 
 
 
1,744,546 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Award vesting period
 
 
 
 
 
3 years 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Awards granted during the period
 
 
 
 
 
 
 
 
 
3,500,000 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Stock value payable
 
 
 
 
 
 
 
 
 
1,400,000 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Liability awards recorded
 
 
 
 
 
 
 
 
 
11,000,000 
7,600,000 
 
 
 
 
 
 
 
 
 
 
 
 
 
Payments to employees
 
 
 
 
 
 
3,700,000 
200,000 
2,400,000 
 
 
 
 
 
300,000 
200,000 
300,000 
 
 
 
 
 
 
 
Grant date fair value of restricted stock vested
 
 
 
 
 
 
 
 
 
 
 
2,700,000 
2,000,000 
2,200,000 
 
 
 
 
 
 
 
 
 
 
Unamortized cost
 
 
 
 
 
 
 
 
 
 
 
2,500,000 
 
 
 
 
 
 
 
 
 
 
 
Recognition period of unrecognized cost
 
 
 
 
 
 
 
 
 
 
 
1 year 2 months 12 days 
 
 
 
 
 
 
 
 
 
 
 
 
Repurchase of common stock for employee tax withholding obligations amount, shares
41,532 
25,432 
35,649 
 
 
 
 
 
 
 
 
41,532 
25,432 
35,649 
 
 
 
 
 
 
 
 
 
 
Repurchase of common stock for employee tax withholding obligations amount
 
 
 
 
 
 
 
 
 
 
 
2,100,000 
700,000 
1,000,000 
 
 
 
 
 
 
 
 
 
 
Repurchased shares
141,462 
 
 
 
 
 
 
 
 
 
 
141,462 
 
 
 
 
 
 
 
 
 
 
Common stock purchased for treasury
 
 
3,800,000 
 
 
 
 
 
 
 
 
 
 
3,800,000 
 
 
 
 
 
 
 
 
 
 
Liabilities related to restricted stock
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
$ 500,000 
$ 400,000 
 
 
 
 
 
Exercised
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Forfeited or expired
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Exercisable
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
63,773 
63,773 
 
 
 
Outstanding
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
63,773 
63,773 
 
 
 
Weighted-average exercise price
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
$ 16.62 
$ 16.62 
 
 
 
Weighted average remaining contractual life
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
2 years 
2 years 
 
 
 
Share-Based Compensation - Summary of Activity of the Outstanding Share-Based Compensation Awards (Details) (USD $)
12 Months Ended
Dec. 31, 2017
Performance Unit Incentive Plan (“PUP”)
 
Summary of activity of the outstanding share-based compensation awards
 
Beginning Balance, Shares
255,505 
Granted, Shares
73,557 
Vested, Shares
(76,082)
Forfeited, Shares
(13,642)
Ending Balance, Shares
239,338 
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
$ 26.11 
Granted, Weighted-Average Grant Date Fair Value
$ 47.44 
Vested, Weighted-Average Grant Date Fair Value
$ 24.07 
Forfeited, Weighted-Average Grant Date Fair Value
$ 34.99 
Ending Balance, Weighted-Average Grant Date Fair Value
$ 32.80 
Restricted Stock
 
Summary of activity of the outstanding share-based compensation awards
 
Beginning Balance, Shares
267,051 
Granted, Shares
67,029 
Vested, Shares
(112,548)
Forfeited, Shares
(14,633)
Ending Balance, Shares
206,899 
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
$ 25.96 
Granted, Weighted-Average Grant Date Fair Value
$ 46.99 
Vested, Weighted-Average Grant Date Fair Value
$ 24.04 
Forfeited, Weighted-Average Grant Date Fair Value
$ 35.31 
Ending Balance, Weighted-Average Grant Date Fair Value
$ 33.16 
Restricted Stock Units
 
Summary of activity of the outstanding share-based compensation awards
 
Beginning Balance, Shares
15,982 
Granted, Shares
2,950 
Vested, Shares
(6,182)
Forfeited, Shares
Ending Balance, Shares
12,750 
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
$ 25.58 
Granted, Weighted-Average Grant Date Fair Value
$ 47.45 
Vested, Weighted-Average Grant Date Fair Value
$ 24.97 
Forfeited, Weighted-Average Grant Date Fair Value
$ 0 
Ending Balance, Weighted-Average Grant Date Fair Value
$ 30.94 
Share-Based Compensation - Summary of Additional Stock Option Information (Details) (USD $)
In Thousands, unless otherwise specified
12 Months Ended
Dec. 31, 2017
Dec. 31, 2016
Dec. 31, 2015
Share-based Compensation Arrangement by Share-based Payment Award, Options, Additional Disclosures [Abstract]
 
 
 
Total intrinsic value of stock options outstanding
$ 2,473 1
$ 1,753 1
$ 740 1
Total intrinsic value of stock options exercised
1,474 
Cash received from the exercise of stock options
898 
Tax benefits realized for tax deductions related to stock option exercises
$ 0 
$ 0 
$ 104 
Acquisition of Businesses - Narrative (Details)
1 Months Ended 12 Months Ended 0 Months Ended 12 Months Ended 0 Months Ended 12 Months Ended 0 Months Ended 12 Months Ended 0 Months Ended 12 Months Ended 0 Months Ended 12 Months Ended
Mar. 31, 2017
Poken Event Engagement Technology
USD ($)
Dec. 31, 2017
Poken Event Engagement Technology
USD ($)
Nov. 3, 2017
Esja Attractions ehf.
USD ($)
Nov. 3, 2017
Esja Attractions ehf.
EUR (€)
Dec. 31, 2017
Esja Attractions ehf.
USD ($)
Jan. 4, 2016
Maligne Tours Ltd
USD ($)
Jan. 4, 2016
Maligne Tours Ltd
CAD ($)
Dec. 31, 2017
Maligne Tours Ltd
USD ($)
Dec. 31, 2016
Maligne Tours Ltd
USD ($)
Dec. 31, 2015
Maligne Tours Ltd
USD ($)
Mar. 11, 2016
CATC Alaska Tourism Corporation
USD ($)
Dec. 31, 2017
CATC Alaska Tourism Corporation
USD ($)
Dec. 31, 2016
CATC Alaska Tourism Corporation
USD ($)
Dec. 31, 2015
CATC Alaska Tourism Corporation
USD ($)
Aug. 11, 2016
ON Event Services LLC
USD ($)
Dec. 31, 2017
ON Event Services LLC
USD ($)
Dec. 31, 2016
ON Event Services LLC
USD ($)
Aug. 11, 2016
ON Event Services LLC
Maximum
USD ($)
Dec. 29, 2016
FlyOver Canada
USD ($)
Dec. 29, 2016
FlyOver Canada
CAD ($)
Dec. 31, 2017
FlyOver Canada
USD ($)
Dec. 31, 2016
FlyOver Canada
USD ($)
Business Acquisition [Line Items]
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Purchase price
$ 1,700,000 
 
$ 9,500,000 
€ 8,200,000 
 
$ 14,962,000 
$ 20,900,000 
 
 
 
$ 45,000,000 
 
 
 
$ 87,000,000 
 
 
 
$ 50,920,000 
$ 68,800,000 
 
 
Acquisition related costs
 
300,000 
 
 
100,000 
 
 
100,000 
100,000 
200,000 
 
100,000 
100,000 
600,000 
 
100,000 
900,000 
 
 
 
100,000 
500,000 
Business acquisition date
 
 
 
 
Nov. 03, 2017 
 
 
Jan. 04, 2016 
 
 
 
Mar. 11, 2016 
 
 
 
Aug. 11, 2016 
 
 
 
 
Dec. 29, 2016 
 
Percentage of controlling interest acquired
 
 
54.50% 
54.50% 
 
 
 
 
 
 
100.00% 
 
 
 
 
 
 
 
 
 
 
 
Estimated fair value of non-controlling interest
 
 
6,700,000 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Operating income (losses)
 
 
 
 
(100,000)
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Aggregate purchase price
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
92,500,000 
 
 
 
 
Contingent liability
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
5,500,000 
 
 
 
 
Estimated fair value of Earnout
 
 
 
 
 
 
 
 
 
 
 
 
 
 
$ 540,000 
 
 
 
 
 
 
 
Goodwill expected to be tax deductible, term of recognition
 
 
 
 
 
 
 
 
 
 
 
 
 
 
15 years 
 
 
 
 
 
 
 
Acquisition of Businesses - Schedule of Recognized Assets Acquired and Liabilities Assumed (Details)
12 Months Ended 0 Months Ended
Dec. 31, 2017
USD ($)
Dec. 31, 2016
USD ($)
Dec. 31, 2015
USD ($)
Jan. 4, 2016
Maligne Tours Ltd
USD ($)
Jan. 4, 2016
Maligne Tours Ltd
CAD ($)
Mar. 11, 2016
CATC Alaska Tourism Corporation
USD ($)
Aug. 11, 2016
ON Event Services LLC
USD ($)
Dec. 29, 2016
FlyOver Canada
USD ($)
Dec. 29, 2016
FlyOver Canada
CAD ($)
Business Acquisition [Line Items]
 
 
 
 
 
 
 
 
 
Cash
 
 
 
$ 14,962,000 
$ 20,900,000 
$ 45,000,000 
$ 87,000,000 
$ 50,920,000 
$ 68,800,000 
Working capital adjustment
 
 
 
 
 
(35,000)
344,000 
 
 
Contingent consideration
 
 
 
 
 
 
540,000 
 
 
Cash acquired
 
 
 
 
 
(2,196,000)
 
(6,000)
 
Total purchase price, net of cash acquired
1,501,000 
195,989,000 
430,000 
14,962,000 
 
42,769,000 
87,884,000 
50,914,000 
 
Accounts receivable
 
 
 
 
 
8,000 
4,643,000 
 
 
Inventories
 
 
 
246,000 
 
921,000 
256,000 
11,000 
 
Prepaid expenses
 
 
 
2,000 
 
82,000 
872,000 
37,000 
 
Property and equipment
 
 
 
4,133,000 
 
43,470,000 
14,827,000 
10,867,000 
 
Intangible assets
 
 
 
9,244,000 
 
980,000 
33,990,000 
6,028,000 
 
Total assets acquired
 
 
 
13,625,000 
 
45,461,000 
54,588,000 
16,943,000 
 
Accounts payable
 
 
 
 
 
306,000 
992,000 
 
 
Accrued liabilities
 
 
 
 
 
434,000 
564,000 
118,000 
 
Customer deposits
 
 
 
15,000 
 
1,952,000 
851,000 
 
 
Other liabilities
 
 
 
240,000 
 
 
274,000 
 
 
Total liabilities acquired
 
 
 
255,000 
 
2,692,000 
2,681,000 
118,000 
 
Total fair value of net assets acquired
 
 
 
13,370,000 
 
42,769,000 
51,907,000 
16,825,000 
 
Excess purchase price over fair value of net assets acquired (“goodwill”)
$ 270,551,000 
$ 254,022,000 
$ 185,223,000 
$ 1,592,000 
 
 
$ 35,977,000 
$ 34,089,000 
 
Acquisition of Businesses - Schedule of Purchase Price Allocated to Intangible Assets (Details) (USD $)
In Thousands, unless otherwise specified
0 Months Ended
Jan. 4, 2016
Maligne Tours Ltd
Jan. 4, 2016
Maligne Tours Ltd
Customer relationships
Jan. 4, 2016
Maligne Tours Ltd
Operating licenses
Jan. 4, 2016
Maligne Tours Ltd
Trade name
Mar. 11, 2016
CATC Alaska Tourism Corporation
Mar. 11, 2016
CATC Alaska Tourism Corporation
Customer relationships
Mar. 11, 2016
CATC Alaska Tourism Corporation
Trade name
Aug. 11, 2016
ON Event Services LLC
Aug. 11, 2016
ON Event Services LLC
Customer relationships
Aug. 11, 2016
ON Event Services LLC
Trade name
Aug. 11, 2016
ON Event Services LLC
Non-compete agreements
Dec. 29, 2016
FlyOver Canada
Dec. 29, 2016
FlyOver Canada
Customer relationships
Dec. 29, 2016
FlyOver Canada
Trade name
Dec. 29, 2016
FlyOver Canada
Non-compete agreements
Finite Lived Intangible Assets [Line Items]
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Fair value of intangible assets acquired
$ 9,244 
$ 788 
$ 8,313 
$ 143 
$ 980 
$ 780 
$ 200 
$ 33,990 
$ 27,620 
$ 3,190 
$ 3,180 
$ 6,028 
$ 1,592 
$ 3,710 
$ 726 
Weighted average life
26 years 8 months 12 days 1
 
 
 
5 years 9 months 18 days 
 
 
10 years 6 months 
 
 
 
9 years 4 months 24 days 
 
 
 
Acquisition of Businesses - Schedule of Purchase Price Allocated to Intangible Assets (Parenthetical) (Details) (Maligne Tours Ltd, Parks Canada)
0 Months Ended
Jan. 4, 2016
Maligne Tours Ltd |
Parks Canada
 
Finite Lived Intangible Assets [Line Items]
 
Operating licenses amortized period
29 years 
Acquisition of Businesses - Unaudited Pro Forma (Details) (USD $)
In Thousands, except Per Share data, unless otherwise specified
12 Months Ended
Dec. 31, 2016
Dec. 31, 2015
Business Combinations [Abstract]
 
 
Revenue
$ 1,250,290 
$ 1,183,656 
Depreciation and amortization
52,074 
52,631 
Income from continuing operations
43,727 
27,881 
Net income attributable to Viad
$ 42,517 
$ 27,045 
Diluted income per share
$ 2.10 
$ 1.35 
Basic income per share
$ 2.10 
$ 1.35 
Inventories - Components of Inventories (Details) (USD $)
In Thousands, unless otherwise specified
Dec. 31, 2017
Dec. 31, 2016
Components of Inventories
 
 
Raw materials
$ 17,550 
$ 16,846 
Work in process
12,822 
14,574 
Inventories
$ 30,372 
$ 31,420 
Other Current Assets - Schedule of Other Current Assets (Details) (USD $)
In Thousands, unless otherwise specified
Dec. 31, 2017
Dec. 31, 2016
Deferred Costs Capitalized Prepaid And Other Assets Disclosure [Abstract]
 
 
Prepaid vendor payments
$ 5,048 
$ 3,633 
Income tax receivable
4,237 
3,614 
Prepaid software maintenance
3,386 
2,804 
Prepaid insurance
2,610 
2,479 
Prepaid taxes
912 
850 
Prepaid rent
730 
327 
Prepaid other
2,172 
731 
Other
1,935 
4,011 
Other current assets
$ 21,030 
$ 18,449 
Property and Equipment - Schedule of Property and Equipment (Details) (USD $)
In Thousands, unless otherwise specified
Dec. 31, 2017
Dec. 31, 2016
Property Plant And Equipment [Line Items]
 
 
Gross property and equipment
$ 606,338 
$ 544,525 
Accumulated depreciation
(300,767)
(264,667)
Property and equipment, net
305,571 
279,858 
Land and land interests
 
 
Property Plant And Equipment [Line Items]
 
 
Gross property and equipment
32,544 1
31,670 1
Buildings and leasehold improvements
 
 
Property Plant And Equipment [Line Items]
 
 
Gross property and equipment
222,118 
185,987 
Equipment and other
 
 
Property Plant And Equipment [Line Items]
 
 
Gross property and equipment
$ 351,676 2
$ 326,868 2
Property and Equipment - Schedule of Property and Equipment (Parenthetical) (Details) (USD $)
Dec. 31, 2017
Dec. 31, 2016
Property Plant And Equipment [Line Items]
 
 
Leasehold interests
$ 606,338,000 
$ 544,525,000 
Net carrying amount of capitalized software
10,100,000 
11,900,000 
Leasehold Land Interests |
Pursuit
 
 
Property Plant And Equipment [Line Items]
 
 
Leasehold interests
$ 8,400,000 
$ 7,900,000 
Property and Equipment - Narrative (Details) (USD $)
3 Months Ended 12 Months Ended 0 Months Ended 12 Months Ended 0 Months Ended 12 Months Ended
Sep. 30, 2017
Jun. 30, 2017
Mar. 31, 2017
Dec. 31, 2016
Sep. 30, 2016
Dec. 31, 2017
Dec. 31, 2016
Dec. 31, 2015
Dec. 29, 2016
Mount Royal Hotel
Dec. 31, 2017
Mount Royal Hotel
Dec. 29, 2016
Mount Royal Hotel
Canada
Dec. 31, 2017
Mount Royal Hotel
Canada
Dec. 31, 2016
Pursuit
Dec. 31, 2015
Pursuit
Property Plant And Equipment [Line Items]
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Depreciation expense
 
 
 
 
 
$ 42,700,000 
$ 33,600,000 
$ 28,100,000 
 
 
 
 
 
 
Non-cash increases property and equipment acquired under capital leases
 
 
 
 
 
2,500,000 
1,200,000 
1,000,000 
 
 
 
 
 
 
Non-cash increases property and equipment purchases in accounts payable and accrued liabilities
 
 
 
 
 
2,300,000 
900,000 
2,300,000 
 
 
 
 
 
 
Impairment charges (recoveries)
(24,467,000)
(2,247,000)
(2,384,000)
98,000 
120,000 
(29,098,000)
218,000 
96,000 
 
 
 
 
200,000 
100,000 
Insurance claims
 
 
 
 
 
 
 
 
 
 
 
36,300,000 
 
 
Impairment recoveries
 
 
 
 
 
 
 
 
 
 
 
29,300,000 
 
 
Asset impairment loss
 
 
 
 
 
 
 
 
$ 2,200,000 
$ 200,000 
$ 2,200,000 
$ 200,000 
 
 
Other Investments and Assets - Summary of Other Investments and Assets (Details) (USD $)
In Thousands, unless otherwise specified
Dec. 31, 2017
Dec. 31, 2016
Investments All Other Investments [Abstract]
 
 
Cash surrender value of life insurance
$ 23,947 
$ 23,197 
Self-insured liability receivable
10,442 
10,463 
Workers’ compensation insurance security deposits
3,550 
4,050 
Other mutual funds
2,637 
2,062 
Other
6,936 
4,525 
Other investments and assets
$ 47,512 
$ 44,297 
Goodwill and Other Intangible Assets - Summary of Goodwill Balances by Component and Segment (Details) (USD $)
In Thousands, unless otherwise specified
12 Months Ended
Dec. 31, 2017
Dec. 31, 2016
Goodwill [Line Items]
 
 
Balance, beginning
$ 254,022 
$ 185,223 
Business acquisitions
8,154 
71,658 
Foreign currency translation adjustments
8,375 
(2,859)
Balance, ending
270,551 
254,022 
GES U.S.
 
 
Goodwill [Line Items]
 
 
Balance, beginning
 
112,300 
Business acquisitions
 
35,977 
Balance, ending
148,277 
148,277 
GES International
 
 
Goodwill [Line Items]
 
 
Balance, beginning
34,460 
38,635 
Business acquisitions
1,060 
 
Foreign currency translation adjustments
3,320 
(4,175)
Balance, ending
38,840 
34,460 
Pursuit
 
 
Goodwill [Line Items]
 
 
Balance, beginning
71,285 
34,288 
Business acquisitions
7,094 
35,681 
Foreign currency translation adjustments
5,055 
1,316 
Balance, ending
$ 83,434 
$ 71,285 
Goodwill and Other Intangible Assets - Goodwill by Reporting Unit and Segment (Details) (USD $)
In Thousands, unless otherwise specified
Dec. 31, 2017
Dec. 31, 2016
Dec. 31, 2015
Dec. 31, 2017
GES U.S.
Dec. 31, 2016
GES U.S.
Dec. 31, 2015
GES U.S.
Dec. 31, 2017
International
Dec. 31, 2016
International
Dec. 31, 2015
International
Dec. 31, 2017
International
GES EMEA
Dec. 31, 2016
International
GES EMEA
Dec. 31, 2017
International
GES Canada
Dec. 31, 2016
International
GES Canada
Dec. 31, 2017
GES
Dec. 31, 2016
GES
Dec. 31, 2017
Pursuit
Dec. 31, 2016
Pursuit
Dec. 31, 2015
Pursuit
Dec. 31, 2017
Pursuit
Banff Jasper Collection
Dec. 31, 2016
Pursuit
Banff Jasper Collection
Dec. 31, 2017
Pursuit
Alaska Collection
Dec. 31, 2016
Pursuit
Alaska Collection
Dec. 31, 2017
Pursuit
Glacier Park Collection
Dec. 31, 2016
Pursuit
Glacier Park Collection
Dec. 29, 2016
FlyOver Canada
Dec. 31, 2017
FlyOver Canada
Pursuit
Dec. 31, 2016
FlyOver Canada
Pursuit
Goodwill by reporting unit and segment
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Goodwill
$ 270,551 
$ 254,022 
$ 185,223 
$ 148,277 
$ 148,277 
$ 112,300 
$ 38,840 
$ 34,460 
$ 38,635 
$ 31,612 
$ 27,694 
$ 7,228 
$ 6,766 
$ 187,117 
$ 182,737 
$ 83,434 
$ 71,285 
$ 34,288 
$ 35,305 
$ 32,587 
$ 3,184 
$ 3,184 
$ 1,268 
$ 1,268 
$ 34,089 
$ 43,677 
$ 34,246 
Goodwill and Other Intangible Assets - Narrative (Details) (USD $)
In Millions, unless otherwise specified
12 Months Ended
Dec. 31, 2017
Dec. 31, 2016
Dec. 31, 2015
Segment Reporting Information [Line Items]
 
 
 
Accumulated Impairment Loss on Goodwill
$ 229.7 
$ 229.7 
 
Intangible asset amortization expense
$ 12.4 
$ 9.2 
$ 7.2 
Customer contracts and relationships
 
 
 
Segment Reporting Information [Line Items]
 
 
 
Weighted-average amortization period of intangible assets
8 years 6 months 
 
 
Tradenames
 
 
 
Segment Reporting Information [Line Items]
 
 
 
Weighted-average amortization period of intangible assets
7 years 
 
 
Operating contracts and licenses
 
 
 
Segment Reporting Information [Line Items]
 
 
 
Weighted-average amortization period of intangible assets
26 years 3 months 18 days 
 
 
Other
 
 
 
Segment Reporting Information [Line Items]
 
 
 
Weighted-average amortization period of intangible assets
2 years 2 months 12 days 
 
 
Non-compete agreements
 
 
 
Segment Reporting Information [Line Items]
 
 
 
Weighted-average amortization period of intangible assets
2 years 2 months 12 days 
 
 
GES U.S.
 
 
 
Segment Reporting Information [Line Items]
 
 
 
Percentage of estimated fair values
134.00% 
 
 
FlyOver Canada
 
 
 
Segment Reporting Information [Line Items]
 
 
 
Percentage of estimated fair values
29.00% 
 
 
GES EMEA |
GES International
 
 
 
Segment Reporting Information [Line Items]
 
 
 
Percentage of estimated fair values
214.00% 
 
 
GES Canada |
GES International
 
 
 
Segment Reporting Information [Line Items]
 
 
 
Percentage of estimated fair values
164.00% 
 
 
Banff Jasper Collection |
Pursuit
 
 
 
Segment Reporting Information [Line Items]
 
 
 
Percentage of estimated fair values
147.00% 
 
 
Alaska Collection |
Pursuit
 
 
 
Segment Reporting Information [Line Items]
 
 
 
Percentage of estimated fair values
99.00% 
 
 
Glacier Park Collection |
Pursuit
 
 
 
Segment Reporting Information [Line Items]
 
 
 
Percentage of estimated fair values
16.00% 
 
 
Goodwill and Other Intangible Assets - Summary of Other Intangible Assets (Details) (USD $)
In Thousands, unless otherwise specified
Dec. 31, 2017
Dec. 31, 2016
Finite-Lived Intangible Assets, Net [Abstract]
 
 
Amortized intangible assets, Gross Carrying Value
$ 93,641 
$ 91,477 
Accumulated Amortization
(31,320)
(18,264)
Amortized intangible assets, Net Carrying Value
62,321 
73,213 
Intangible Assets, Gross (Excluding Goodwill)
94,101 
91,937 
Other intangible assets, net
62,781 
73,673 
Customer contracts and relationships
 
 
Finite-Lived Intangible Assets, Net [Abstract]
 
 
Amortized intangible assets, Gross Carrying Value
68,798 
67,762 
Accumulated Amortization
(23,696)
(14,345)
Amortized intangible assets, Net Carrying Value
45,102 
53,417 
Operating contracts and licenses
 
 
Finite-Lived Intangible Assets, Net [Abstract]
 
 
Amortized intangible assets, Gross Carrying Value
9,951 
9,315 
Accumulated Amortization
(1,094)
(652)
Amortized intangible assets, Net Carrying Value
8,857 
8,663 
Tradenames
 
 
Finite-Lived Intangible Assets, Net [Abstract]
 
 
Amortized intangible assets, Gross Carrying Value
8,633 
8,324 
Accumulated Amortization
(2,873)
(1,440)
Amortized intangible assets, Net Carrying Value
5,760 
6,884 
Non-compete agreements
 
 
Finite-Lived Intangible Assets, Net [Abstract]
 
 
Amortized intangible assets, Gross Carrying Value
5,363 
5,190 
Accumulated Amortization
(3,007)
(1,369)
Amortized intangible assets, Net Carrying Value
2,356 
3,821 
Other
 
 
Finite-Lived Intangible Assets, Net [Abstract]
 
 
Amortized intangible assets, Gross Carrying Value
896 
886 
Accumulated Amortization
(650)
(458)
Amortized intangible assets, Net Carrying Value
246 
428 
Business licenses
 
 
Finite-Lived Intangible Assets, Net [Abstract]
 
 
Unamortized intangible assets, Gross Carrying Value
$ 460 
$ 460 
Other Current Liabilities - Schedule of Other Current Liabilities (Details) (USD $)
In Thousands, unless otherwise specified
Dec. 31, 2017
Dec. 31, 2016
Continuing operations:
 
 
Accrued income tax payable
$ 7,518 
$ 758 
Self-insured liability accrual
6,208 
5,941 
Commissions payable
3,235 
639 
Accrued employee benefit costs
2,915 
2,624 
Accrued sales and use taxes
2,431 
4,279 
Accrued dividends
2,094 
2,119 
Current portion of pension and postretirement liabilities
2,109 
1,963 
Deferred rent
1,679 
1,535 
Accrued rebates
1,106 
1,078 
Accrued professional fees
1,020 
794 
Accrued restructuring
722 
1,924 
Other taxes
2,750 
4,210 
Other
3,852 
1,774 
Total continuing operations
37,639 
29,638 
Discontinued operations:
 
 
Environmental remediation liabilities
648 
492 
Self-insured liability accrual
337 
162 
Other
96 
98 
Total discontinued operations
1,081 
752 
Total other current liabilities
$ 38,720 
$ 30,390 
Other Deferred Items and Liabilities - Summary of Other Deferred Items and Liabilities (Details) (USD $)
In Thousands, unless otherwise specified
Dec. 31, 2017
Dec. 31, 2016
Continuing operations:
 
 
Self-insured liability
$ 12,918 
$ 12,981 
Self-insured excess liability
10,442 
10,463 
Accrued compensation
9,740 
8,514 
Foreign deferred tax liability
8,267 
2,264 
Deferred rent
3,855 
5,271 
Accrued restructuring
1,827 
1,858 
Other
1,305 
1,300 
Total continuing operations
48,354 
42,651 
Discontinued operations:
 
 
Self-insured liability
2,557 
3,748 
Environmental remediation liabilities
1,728 
3,091 
Accrued income taxes
 
1,045 
Other
219 
199 
Total discontinued operations
4,504 
8,083 
Total other deferred items and liabilities
$ 52,858 
$ 50,734 
Debt and Capital Lease Obligations - Schedule of Long-term Debt and Capital Lease Obligations (Details) (USD $)
In Thousands, unless otherwise specified
Dec. 31, 2017
Dec. 31, 2016
Debt Instrument [Line Items]
 
 
Revolving credit facility and term loan gross
$ 207,322 1
$ 212,750 1
Less unamortized debt issuance costs
(984)
(1,464)
Total debt
206,338 
247,742 
Capital lease obligations, 3.8% weighted-average interest rate at December 31, 2017 and 4.9% at December 31, 2016, due through 2021
2,854 
1,469 
Total debt and capital lease obligations
209,192 
249,211 
Current portion
(152,599)2
(174,968)2
Long-term debt and capital lease obligations
56,593 
74,243 
Brewster Inc. Revolving Credit Facility
 
 
Debt Instrument [Line Items]
 
 
Revolving credit facility and term loan gross
 
$ 36,456 1
Debt and Capital Lease Obligations - Schedule of Long-term Debt and Capital Lease Obligations (Parenthetical) (Details)
12 Months Ended
Dec. 31, 2017
Dec. 31, 2016
Debt Instrument [Line Items]
 
 
Interest rate on credit facility
3.10% 
2.60% 
Weighted interest rate on long term debt
3.80% 
4.90% 
Current revolving credit facility maturity period
1 year 
1 year 
Brewster Inc. Revolving Credit Facility
 
 
Debt Instrument [Line Items]
 
 
Interest rate on credit facility
 
2.70% 
Debt and Capital Lease Obligations - Narrative (Details) (USD $)
12 Months Ended 0 Months Ended 12 Months Ended 0 Months Ended 12 Months Ended 0 Months Ended
Dec. 31, 2017
Dec. 31, 2016
Dec. 31, 2015
Dec. 31, 2017
Revolving Credit Facility
Dec. 31, 2017
Term Loan
Dec. 6, 2017
Brewster Revolver
Dec. 31, 2017
Brewster Revolver
Dec. 31, 2016
Brewster Revolver
Dec. 28, 2016
Brewster Revolver
Dec. 31, 2017
Capital Leases
Dec. 31, 2016
Capital Leases
Dec. 22, 2014
Amended and Restated Credit Agreement
Dec. 22, 2014
Amended and Restated Credit Agreement
Senior Credit Facility
Dec. 22, 2014
Amended and Restated Credit Agreement
Revolving Credit Facility
Dec. 22, 2014
Amended and Restated Credit Agreement
Term Loan
Dec. 31, 2017
Amendment No. 1
Dec. 31, 2017
Amendment No. 1
Maximum
Dec. 31, 2017
Amendment No. 1
Minimum
Dec. 22, 2014
Top Tier Foreign Subsidiaries
Amended and Restated Credit Agreement
Line of Credit Facility [Line Items]
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Borrowing capacity on line of credit
 
 
 
 
 
$ 20,000,000 
 
 
$ 38,000,000 
 
 
 
$ 300,000,000 
$ 175,000,000 
$ 125,000,000 
 
 
 
 
Additional borrowing capacity on line of credit
 
 
 
 
 
 
 
 
 
 
 
 
 
100,000,000 
 
 
 
 
 
Line of Credit borrowings used to support letter of credit
 
 
 
 
 
 
 
 
 
 
 
 
 
40,000,000 
 
 
 
 
 
Maturity date
 
 
 
 
 
Dec. 28, 2018 
 
 
 
 
 
Dec. 22, 2019 
 
 
 
 
 
 
 
Percent of lenders security interest on capital stock foreign subsidiary
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
65.00% 
Leverage ratio
145.00% 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
350.00% 
 
 
Fixed charge coverage ratio
310.00% 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
175.00% 
 
Maximum leverage ratio for acquisition
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
300.00% 
 
 
 
Leverage ratio required for dividend or share activity
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
250.00% 
 
 
 
Maximum leverage ratio for unsecured debt
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
300.00% 
 
 
 
Annual share repurchase limit on leverage ratio basis
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
20,000,000 
 
 
 
Commitment fee percentage on line of credit
 
 
 
0.30% 
 
 
0.20% 
 
 
 
 
 
 
 
 
 
 
 
 
Total debt and capital lease obligations
209,192,000 
249,211,000 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Revolving Credit Facility, Balance Outstanding
207,322,000 1
212,750,000 1
 
132,300,000 
75,000,000 
 
 
36,456,000 1
 
 
 
 
 
 
 
 
 
 
 
Capital lease obligations, total
2,854,000 
1,469,000 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Remaining borrowing capacity on line of credit
41,400,000 
 
 
 
 
 
20,000,000 
 
 
 
 
 
 
 
 
 
 
 
 
Letters of credit outstanding
1,300,000 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Unamortized debt issuance cost
984,000 
1,464,000 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Maximum potential amount of future payments
19,300,000 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Guarantees relate to facilities leased by the company
2027-10 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Recourse provisions
There are no recourse provisions that would enable us to recover from third parties any payments made under the guarantees 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Collateral on line of credit
 
 
 
Furthermore, there are no collateral or similar arrangements whereby we could recover payments 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Gross amount of assets recorded under capital leases
 
 
 
 
 
 
 
 
 
4,800,000 
3,300,000 
 
 
 
 
 
 
 
 
Accumulated Amortization
31,320,000 
18,264,000 
 
 
 
 
 
 
 
2,000,000 
1,700,000 
 
 
 
 
 
 
 
 
Debt, Weighted Average Interest Rate
3.70% 
3.10% 
3.20% 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Fair value of debt
203,200,000 
252,800,000 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Cash paid for interest on debt
$ 7,700,000 
$ 5,500,000 
$ 4,200,000 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Debt and Capital Lease Obligations - Schedule of Aggregate Annual Maturities of Long-term Debt and Capital Lease Obligations (Details) (USD $)
In Thousands, unless otherwise specified
Dec. 31, 2017
Dec. 31, 2016
Debt Instrument [Line Items]
 
 
Revolving Credit, Maturity, Total
$ 207,322 1
$ 212,750 1
Capital Leases, Future Minimum Payments Due, 2018
1,601 
 
Capital Leases, Future Minimum Payments Due, 2019
899 
 
Capital Leases, Future Minimum Payments Due, 2020
454 
 
Capital Leases, Future Minimum Payments Due, 2021
17 
 
Capital Leases, Future Minimum Payments Due, Total
2,971 
 
Capital Leases, Interest Included in Payments
(117)
 
Capital Leases, Present Value of Net Minimum Payments
2,854 
 
Revolving Credit Agreement
 
 
Debt Instrument [Line Items]
 
 
Revolving Credit, Maturity, 2018
151,072 
 
Revolving Credit, Maturity, 2019
56,250 
 
Revolving Credit, Maturity, Total
$ 207,322 
 
Fair Value Measurements - Summary of Fair Value Assets Measured on Recurring Basis (Details) (Fair Value, Measurements, Recurring, USD $)
In Thousands, unless otherwise specified
Dec. 31, 2017
Dec. 31, 2016
Fair value information related to assets
 
 
Assets
$ 2,756 
$ 2,180 
Quoted Prices in Active Markets (Level 1)
 
 
Fair value information related to assets
 
 
Assets
2,756 
2,180 
Money market funds
 
 
Fair value information related to assets
 
 
Assets
119 1
118 1
Money market funds |
Quoted Prices in Active Markets (Level 1)
 
 
Fair value information related to assets
 
 
Assets
119 1
118 1
Other mutual funds
 
 
Fair value information related to assets
 
 
Assets
2,637 2
2,062 2
Other mutual funds |
Quoted Prices in Active Markets (Level 1)
 
 
Fair value information related to assets
 
 
Assets
$ 2,637 2
$ 2,062 2
Fair Value Measurements - Summary of Fair Value Assets Measured on Recurring Basis (Parenthetical) (Details) (USD $)
12 Months Ended
Dec. 31, 2017
Money market funds
Dec. 31, 2017
Other mutual funds
Dec. 31, 2016
Other mutual funds
Fair Value Assets And Liabilities Measured On Recurring And Nonrecurring Basis [Line Items]
 
 
 
Realized gains on the investments
$ 0 
 
 
Unrealized gains on the investments
1,000,000 
700,000 
Unrealized gains on the investments after-tax
 
$ 600,000 
$ 400,000 
Income Per Share - Reconciliation of Basic and Diluted Income Per Share (Details) (USD $)
In Thousands, except Per Share data, unless otherwise specified
3 Months Ended 12 Months Ended
Dec. 31, 2017
Sep. 30, 2017
Jun. 30, 2017
Mar. 31, 2017
Dec. 31, 2016
Sep. 30, 2016
Jun. 30, 2016
Mar. 31, 2016
Dec. 31, 2017
Dec. 31, 2016
Dec. 31, 2015
Numerator:
 
 
 
 
 
 
 
 
 
 
 
Net income attributable to Viad (diluted)
$ (21,674)
$ 44,657 
$ 27,947 
$ 6,777 
$ (4,049)
$ 33,792 
$ 19,509 
$ (6,983)
$ 57,707 
$ 42,269 
$ 26,606 
Less: Allocation to non-vested shares
 
 
 
 
 
 
 
 
(700)
(571)
(385)
Net income allocated to Viad common stockholders (basic)
 
 
 
 
 
 
 
 
$ 57,007 
$ 41,698 
$ 26,221 
Denominator:
 
 
 
 
 
 
 
 
 
 
 
Basic weighted-average outstanding common shares
 
 
 
 
 
 
 
 
20,146 
19,990 
19,797 
Additional dilutive shares related to share-based compensation
 
 
 
 
 
 
 
 
259 
187 
184 
Diluted weighted-average outstanding shares
 
 
 
 
 
 
 
 
20,405 
20,177 
19,981 
Basic income attributable to Viad common stockholders
 
 
 
 
 
 
 
 
$ 2.83 
$ 2.09 
$ 1.32 
Diluted income attributable to Viad common stockholders
 
 
 
 
 
 
 
 
$ 2.83 
$ 2.09 
$ 1.32 
Income Per Share - Narrative (Details) (Stock Options)
12 Months Ended
Dec. 31, 2017
Dec. 31, 2016
Dec. 31, 2015
Stock Options
 
 
 
Antidilutive Securities Excluded From Computation Of Earnings Per Share [Line Items]
 
 
 
Common stock shares effect would be anti-dilutive
8,000 
500 
4,000 
Preferred Stock Purchase Rights - Narrative (Details)
Dec. 31, 2017
Equity [Abstract]
 
Preferred Stock, Authorized
5,000,000 
Junior participating preferred Stock, Authorized
2,000,000 
Preferred Stock, Shares Outstanding
Junior Preferred Stock, Shares Outstanding
Accumulated Other Comprehensive Income (Loss) - Schedules of Accumulated Other Comprehensive Income (Loss) (Details) (USD $)
In Thousands, unless otherwise specified
12 Months Ended
Dec. 31, 2017
Dec. 31, 2016
Dec. 31, 2015
Dec. 31, 2014
Dec. 31, 2015
Scenario, Previously Reported
Dec. 31, 2017
Unrealized Gains on Investments
Dec. 31, 2016
Unrealized Gains on Investments
Dec. 31, 2017
Cumulative Foreign Currency Translation Adjustments
Dec. 31, 2016
Cumulative Foreign Currency Translation Adjustments
Dec. 31, 2017
Unrecognized Net Actuarial Loss and Prior Service Credit, Net
Dec. 31, 2016
Unrecognized Net Actuarial Loss and Prior Service Credit, Net
Dec. 31, 2017
Accumulated Other Comprehensive Income (Loss)
Dec. 31, 2016
Accumulated Other Comprehensive Income (Loss)
Dec. 31, 2014
Accumulated Other Comprehensive Income (Loss)
Accumulated Other Comprehensive Income (Loss), Net of Tax [Roll Forward]
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Beginning Balance
$ 442,937 
$ 370,638 
$ 335,338 
$ 347,702 
$ (34,176)
$ 421 
$ 346 
$ (29,084)
$ (23,257)
$ (10,728)
$ (11,265)
$ (39,391)
$ (34,176)
$ (589)
Other comprehensive income (loss) before reclassifications
 
 
 
 
 
257 
135 
17,058 
(5,827)
17,315 
(5,692)
 
Amounts reclassified from AOCI, net of tax
 
 
 
 
 
(62)
(60)
(430)
537 
(492)
477 
 
Net other comprehensive income (loss)
 
 
 
 
 
195 
75 
17,058 
(5,827)
(430)
537 
16,823 
(5,215)
 
Ending Balance
$ 442,937 
$ 370,638 
$ 335,338 
$ 347,702 
$ (34,176)
$ 616 
$ 421 
$ (12,026)
$ (29,084)
$ (11,158)
$ (10,728)
$ (22,568)
$ (39,391)
$ (589)
Accumulated Other Comprehensive Income (Loss) - Reclassification Out of Accumulated Other Comprehensive Income (Details) (USD $)
In Thousands, unless otherwise specified
3 Months Ended 12 Months Ended
Dec. 31, 2017
Sep. 30, 2017
Jun. 30, 2017
Mar. 31, 2017
Dec. 31, 2016
Sep. 30, 2016
Jun. 30, 2016
Mar. 31, 2016
Dec. 31, 2017
Dec. 31, 2016
Dec. 31, 2015
Reclassification Adjustment Out Of Accumulated Other Comprehensive Income [Line Items]
 
 
 
 
 
 
 
 
 
 
 
Unrealized gains on investments
 
 
 
 
 
 
 
 
$ 319 
$ 1,165 
$ 658 
Tax effect
 
 
 
 
 
 
 
 
(45,898)
(21,250)
(10,493)
Income from continuing operations
(21,814)
44,758 
27,438 
7,593 
(4,136)
34,013 
19,873 
(6,797)
58,452 
43,479 
27,442 
Reclassification out of Accumulated Other Comprehensive Income |
Unrealized Gains on Investments
 
 
 
 
 
 
 
 
 
 
 
Reclassification Adjustment Out Of Accumulated Other Comprehensive Income [Line Items]
 
 
 
 
 
 
 
 
 
 
 
Unrealized gains on investments
 
 
 
 
 
 
 
 
(100)
(97)
 
Tax effect
 
 
 
 
 
 
 
 
38 
37 
 
Income from continuing operations
 
 
 
 
 
 
 
 
(62)
(60)
 
Reclassification out of Accumulated Other Comprehensive Income |
Unrecognized Net Actuarial Loss and Prior Service Credit, Net
 
 
 
 
 
 
 
 
 
 
 
Reclassification Adjustment Out Of Accumulated Other Comprehensive Income [Line Items]
 
 
 
 
 
 
 
 
 
 
 
Recognized net actuarial (gain) loss
 
 
 
 
 
 
 
 
507 1
1,440 1
 
Amortization of prior service credit
 
 
 
 
 
 
 
 
(1,247)1
(575)1
 
Tax effect
 
 
 
 
 
 
 
 
310 
(328)
 
Income from continuing operations
 
 
 
 
 
 
 
 
$ (430)
$ 537 
 
Income Taxes - Narrative (Details) (USD $)
3 Months Ended 12 Months Ended 12 Months Ended 12 Months Ended 12 Months Ended 12 Months Ended 12 Months Ended
Dec. 31, 2017
Dec. 31, 2017
Dec. 31, 2016
Dec. 31, 2015
Dec. 31, 2017
Continuing Operations
Dec. 31, 2017
Discontinued Operations
Dec. 31, 2017
U.S
Dec. 31, 2016
U.S
Dec. 31, 2017
U.S
Foreign Exchange
Dec. 31, 2017
Foreign Tax Authority
German
Dec. 31, 2017
State and Foreign
Dec. 31, 2016
State and Foreign
Dec. 31, 2017
State
Dec. 31, 2017
Foreign Income Tax Credit
Dec. 31, 2017
Foreign Income Tax Credit
U.S
Dec. 31, 2017
Foreign Income Tax Credit
Foreign Tax Authority
United Kingdom
Dec. 31, 2017
Alternative Minimum Tax Credit Carryforward
Dec. 31, 2018
Scenario, Forecast
Operating Loss Carryforwards [Line Items]
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
U.S. federal corporate tax rate
 
35.00% 
35.00% 
35.00% 
 
 
 
 
 
 
 
 
 
 
 
 
 
21.00% 
Tax cuts and jobs act of 2017 incomplete accounting change in tax rate income tax expense
$ 8,000,000 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Tax cuts and jobs act of 2017 incomplete accounting undistributed foreign E&P subject to the deemed mandatory repatriation and recognized
 
174,000,000 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Tax cuts and jobs act of 2017 incomplete accounting current income tax expense
8,100,000 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Deferred Tax Assets, Gross
38,146,000 
38,146,000 
58,316,000 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Deferred Tax Assets, Tax Credit Carryforwards
6,654,000 
6,654,000 
11,380,000 
 
 
 
 
 
 
 
 
 
 
400,000 
100,000 
300,000 
 
 
Tax credit carryforward expiration period
 
 
 
 
 
 
 
 
 
 
 
 
 
 
10 years 
 
 
 
Tax credit carryforward expiration year
 
 
 
 
 
 
 
 
 
 
 
 
 
 
2021 
 
 
 
Tax credit carryforward
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
6,200,000 
 
Operating Loss Carryforwards
 
 
 
 
 
 
 
 
 
 
68,400,000 
63,000,000 
 
 
 
 
 
 
Deferred Tax, Operating Loss Carryforwards
5,195,000 
5,195,000 
5,023,000 
 
 
 
 
 
 
 
5,200,000 
5,000,000 
 
 
 
 
 
 
Valuation allowance
4,010,000 
4,010,000 
3,998,000 
 
 
 
4,000,000 
4,000,000 
 
 
 
 
 
 
 
 
 
 
Valuation Allowance Operating Loss Carryforwards Change In Amount
 
 
 
 
 
 
 
 
 
(1,600,000)
 
 
 
 
 
300,000 
 
 
Increase in net operating loss
 
 
 
 
 
 
 
 
 
 
 
 
(500,000)
 
 
 
 
 
Decrease in tax expense
 
8,000,000 1
 
 
 
 
600,000 
 
 
 
 
 
 
 
 
 
 
 
Increase in foreign exchange
 
 
 
 
 
 
 
 
200,000 
 
 
 
 
 
 
 
 
 
Liability for uncertain tax positions
1,700,000 
1,700,000 
2,700,000 
 
 
1,000,000 
 
 
 
 
 
 
 
 
 
 
 
 
Increase (Decrease) in Uncertain Tax Liability
 
100,000 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Accrued Interest And Penalties Related To Continued Operations
100,000 
100,000 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Expected tax position to be resolved or settled
 
 
 
 
1,300,000 
 
 
 
 
 
 
 
 
 
 
 
 
 
Accrued Interest and Penalties for Discontinued Operations
400,000 
400,000 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Liabilities associated with discontinued operations uncertain tax positions
1,000,000 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Income Taxes Paid
 
$ 14,600,000 
$ 14,100,000 
$ 10,100,000 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Income Taxes - Summary of Income from Continuing Operations before Income Taxes (Details) (USD $)
In Thousands, unless otherwise specified
12 Months Ended
Dec. 31, 2017
Dec. 31, 2016
Dec. 31, 2015
Income (Loss) from Continuing Operations before Equity Method Investments, Income Taxes, Extraordinary Items, Noncontrolling Interest [Abstract]
 
 
 
Foreign
$ 82,919 
$ 33,611 
$ 35,571 
United States
21,431 
31,118 
2,364 
Income from continuing operations before income taxes
$ 104,350 
$ 64,729 
$ 37,935 
Income Taxes - Summary of Significant Components of the Income Tax Provision From Continuing Operations (Details) (USD $)
In Thousands, unless otherwise specified
12 Months Ended
Dec. 31, 2017
Dec. 31, 2016
Dec. 31, 2015
Current:
 
 
 
Federal
$ 1,693 
$ 3,685 
$ (876)
State
2,573 
1,716 
1,558 
Foreign
15,583 
8,177 
9,342 
Total current
19,849 
13,578 
10,024 
Deferred:
 
 
 
Federal
19,893 
8,427 
1,854 
State
1,761 
(598)
(164)
Foreign
4,395 
(157)
(1,221)
Total deferred
26,049 
7,672 
469 
Income tax expense
$ 45,898 
$ 21,250 
$ 10,493 
Income Taxes - Reconciliation of Income Tax Expense (Details) (USD $)
In Thousands, unless otherwise specified
12 Months Ended
Dec. 31, 2017
Dec. 31, 2016
Dec. 31, 2015
Effective Income Tax Rate Reconciliation, Amount [Abstract]
 
 
 
Computed income tax expense at statutory federal income tax rate of 35%
$ 36,522 
$ 22,655 
$ 13,277 
State income taxes, net of federal benefit
1,160 
292 
1,713 
Deemed mandatory repatriation state tax
1,206 
 
 
Deemed mandatory repatriation federal tax, net of foreign tax credit
6,936 
 
 
Decrease in tax expense
8,000 1
 
 
Foreign tax rate differential
(5,031)
(882)
(1,181)
U.S. tax on current year foreign earnings, net of foreign tax credits
(2,726)
(373)
(948)
Change in valuation allowance
(796)
1,230 
(944)
Other adjustments, net
627 
(1,672)
(1,424)
Income tax expense
$ 45,898 
$ 21,250 
$ 10,493 
Effective Income Tax Rate Reconciliation, Percent [Abstract]
 
 
 
Computed income tax expense at statutory federal income tax rate of 35%, tax rate
35.00% 
35.00% 
35.00% 
State income taxes, net of federal benefit, tax rate
1.10% 
0.50% 
4.50% 
Deemed mandatory repatriation state tax rate
1.20% 
 
 
Deemed mandatory repatriation federal tax, net of foreign tax credit, tax rate
6.60% 
 
 
Decrease in tax percentage
7.70% 1
 
 
Foreign tax differentials rate
(4.80%)
(1.40%)
(3.10%)
U.S. tax on current year foreign earnings, net of foreign tax credits, tax rate
(2.60%)
(0.60%)
(2.50%)
Change in valuation allowance, tax rate
(0.80%)
1.90% 
(2.50%)
Other adjustments, net, tax rate
0.60% 
(2.60%)
(3.70%)
Income tax expense
44.00% 
32.80% 
27.70% 
Income Taxes - Reconciliation of Income Tax Expense (Parenthetical) (Details) (USD $)
In Thousands, unless otherwise specified
12 Months Ended
Dec. 31, 2017
Dec. 31, 2016
Dec. 31, 2015
Valuation Allowance [Line Items]
 
 
 
Computed income tax expense at statutory federal income tax rate of 35%, tax rate
35.00% 
35.00% 
35.00% 
Increase to valuation allowance related to remeasurement of deferred taxes due to reduction in U.S. tax rate
$ (796)
$ 1,230 
$ (944)
U.S
 
 
 
Valuation Allowance [Line Items]
 
 
 
Increase to valuation allowance related to remeasurement of deferred taxes due to reduction in U.S. tax rate
$ 600 
 
 
Income Taxes - Schedule of Deferred Tax Assets and Liabilities (Details) (USD $)
In Thousands, unless otherwise specified
Dec. 31, 2017
Dec. 31, 2016
Deferred tax assets:
 
 
Tax credit carryforwards
$ 6,654 
$ 11,380 
Pension, compensation, and other employee benefits
15,173 
22,868 
Provisions for losses
5,826 
10,235 
Net operating loss carryforward
5,195 
5,023 
State income taxes
2,502 
3,790 
Other deferred income tax assets
2,796 
5,020 
Total deferred tax assets
38,146 
58,316 
Valuation allowance
(4,010)
(3,998)
Foreign deferred tax assets included above
(2,396)
(1,972)
Net deferred tax assets
31,740 
52,346 
Deferred tax liabilities:
 
 
Property and equipment
(10,530)
(3,299)
Deferred tax related to life insurance
(3,556)
(5,642)
Goodwill and other intangible assets
(4,299)
(4,535)
Other deferred income tax liabilities
(463)
(557)
Total deferred tax liabilities
(18,848)
(14,033)
Foreign deferred tax liabilities included above
7,869 
2,852 
United States net deferred tax assets
$ 20,761 
$ 41,165 
Income Taxes - Schedule of Unrecognized Tax Benefits (Details) (USD $)
In Thousands, unless otherwise specified
12 Months Ended
Dec. 31, 2017
Dec. 31, 2016
Dec. 31, 2015
Reconciliation of Unrecognized Tax Benefits, Excluding Amounts Pertaining to Examined Tax Returns [Roll Forward]
 
 
 
Unrecognized Tax Benefits, Beginning Balance
$ 2,195 
$ 943 
$ 1,919 
Additions for tax positions taken in prior years
43 
1,295 
43 
Reductions for tax positions taken in prior years
 
 
(666)
Reductions for lapse of applicable statutes
(813)
(43)
(353)
Unrecognized Tax Benefits, Ending Balance
1,425 
2,195 
943 
Continuing Operations
 
 
 
Reconciliation of Unrecognized Tax Benefits, Excluding Amounts Pertaining to Examined Tax Returns [Roll Forward]
 
 
 
Unrecognized Tax Benefits, Beginning Balance
1,559 
307 
1,283 
Additions for tax positions taken in prior years
43 
1,295 
43 
Reductions for tax positions taken in prior years
 
 
(666)
Reductions for lapse of applicable statutes
(177)
(43)
(353)
Unrecognized Tax Benefits, Ending Balance
1,425 
1,559 
307 
Discontinued Operations
 
 
 
Reconciliation of Unrecognized Tax Benefits, Excluding Amounts Pertaining to Examined Tax Returns [Roll Forward]
 
 
 
Unrecognized Tax Benefits, Beginning Balance
636 
636 
636 
Additions for tax positions taken in prior years
Reductions for tax positions taken in prior years
 
 
Reductions for lapse of applicable statutes
(636)
Unrecognized Tax Benefits, Ending Balance
$ 0 
$ 636 
$ 636 
Pension and Postretirement Benefits - Components of Net Periodic Benefit Cost and Other Amounts Recognized in Other Comprehensive Income (Loss) of Viad's Postretirement Benefit Plans (Details) (USD $)
In Thousands, unless otherwise specified
12 Months Ended
Dec. 31, 2017
Dec. 31, 2016
Dec. 31, 2015
Foreign Pension Plans
 
 
 
Net periodic benefit cost:
 
 
 
Service cost
$ 530 
$ 488 
$ 503 
Interest cost
492 
488 
505 
Expected return on plan assets
(602)
(558)
(583)
Recognized net actuarial loss
155 
162 
160 
Settlement
777 
 
 
Net periodic benefit cost
1,352 
580 
585 
Other changes in plan assets and benefit obligations recognized in other comprehensive income (loss):
 
 
 
Net actuarial loss (gain)
(106)
158 
182 
Reversal of amortization item:
 
 
 
Net actuarial loss
(155)
(162)
(160)
Total recognized in other comprehensive income (loss)
(261)
(4)
22 
Total recognized in net periodic benefit cost and other comprehensive income (loss)
1,091 
576 
607 
Pension Plans |
Domestic Plans
 
 
 
Net periodic benefit cost:
 
 
 
Service cost
64 
98 
101 
Interest cost
803 
1,032 
1,018 
Expected return on plan assets
(176)
(256)
(380)
Recognized net actuarial loss
433 
423 
492 
Net periodic benefit cost
1,124 
1,297 
1,231 
Other changes in plan assets and benefit obligations recognized in other comprehensive income (loss):
 
 
 
Net actuarial loss (gain)
114 
(963)
Reversal of amortization item:
 
 
 
Net actuarial loss
(433)
(423)
(492)
Total recognized in other comprehensive income (loss)
(319)
(422)
(1,455)
Total recognized in net periodic benefit cost and other comprehensive income (loss)
805 
875 
(224)
Postretirement Benefit Plans |
Domestic Plans
 
 
 
Net periodic benefit cost:
 
 
 
Service cost
92 
99 
152 
Interest cost
413 
573 
619 
Amortization of prior service credit
(431)
(503)
(552)
Recognized net actuarial loss
164 
295 
528 
Net periodic benefit cost
238 
464 
747 
Other changes in plan assets and benefit obligations recognized in other comprehensive income (loss):
 
 
 
Net actuarial loss (gain)
237 
(790)
(1,248)
Prior service credit
816 
73 
Reversal of amortization item:
 
 
 
Net actuarial loss
(164)
(295)
(528)
Prior service credit
431 
503 
552 
Total recognized in other comprehensive income (loss)
1,320 
(509)
(1,221)
Total recognized in net periodic benefit cost and other comprehensive income (loss)
$ 1,558 
$ (45)
$ (474)
Pension and Postretirement Benefits - Summary of Funded Status of the Plans (Details) (USD $)
In Thousands, unless otherwise specified
12 Months Ended
Dec. 31, 2017
Dec. 31, 2016
Dec. 31, 2015
Domestic Plans
 
 
 
Change in plan assets:
 
 
 
Fair value of plan assets at end of year
$ 11,590 
$ 10,416 
 
Foreign Pension Plans
 
 
 
Change in benefit obligation:
 
 
 
Service cost
530 
488 
503 
Interest cost
492 
488 
505 
Actuarial adjustments
(106)
158 
182 
Change in plan assets:
 
 
 
Fair value of plan assets at beginning of year
10,576 
 
 
Fair value of plan assets at end of year
9,493 
10,576 
 
Foreign Pension Plans |
Funded Plans
 
 
 
Change in benefit obligation:
 
 
 
Benefit obligation at beginning of year
10,488 
9,744 
 
Service cost
530 
488 
 
Interest cost
406 
400 
 
Actuarial adjustments
658 
395 
 
Benefits paid
(3,231)
(818)
 
Translation adjustment
670 
279 
 
Benefit obligation at end of year
9,521 
10,488 
 
Change in plan assets:
 
 
 
Fair value of plan assets at beginning of year
10,576 
9,705 
 
Actual return on plan assets
764 
617 
 
Company contributions
710 
795 
 
Benefits paid
(3,231)
(818)
 
Translation adjustment
674 
277 
 
Fair value of plan assets at end of year
9,493 
10,576 
 
Funded status at end of year
(28)
88 
 
Foreign Pension Plans |
Unfunded Pension Plans
 
 
 
Change in benefit obligation:
 
 
 
Benefit obligation at beginning of year
2,486 
2,470 
 
Interest cost
87 
87 
 
Actuarial adjustments
(54)
105 
 
Benefits paid
(182)
(177)
 
Translation adjustment
245 
 
Benefit obligation at end of year
2,582 
2,486 
 
Change in plan assets:
 
 
 
Company contributions
182 
177 
 
Benefits paid
(182)
(177)
 
Funded status at end of year
(2,582)
(2,486)
 
Pension Plans |
Domestic Plans
 
 
 
Change in benefit obligation:
 
 
 
Service cost
64 
98 
101 
Interest cost
803 
1,032 
1,018 
Actuarial adjustments
114 
(963)
Pension Plans |
Domestic Plans |
Funded Plans
 
 
 
Change in benefit obligation:
 
 
 
Benefit obligation at beginning of year
15,027 
14,906 
 
Interest cost
492 
629 
 
Actuarial adjustments
618 
240 
 
Benefits paid
(697)
(748)
 
Benefit obligation at end of year
15,440 
15,027 
 
Change in plan assets:
 
 
 
Fair value of plan assets at beginning of year
10,416 
10,479 
 
Actual return on plan assets
855 
273 
 
Company contributions
1,016 
412 
 
Benefits paid
(697)
(748)
 
Fair value of plan assets at end of year
11,590 
10,416 
 
Funded status at end of year
(3,850)
(4,611)
 
Pension Plans |
Domestic Plans |
Unfunded Pension Plans
 
 
 
Change in benefit obligation:
 
 
 
Benefit obligation at beginning of year
9,825 
10,049 
 
Service cost
64 
97 
 
Interest cost
311 
403 
 
Actuarial adjustments
175 
(221)
 
Benefits paid
(518)
(503)
 
Benefit obligation at end of year
9,857 
9,825 
 
Change in plan assets:
 
 
 
Company contributions
518 
503 
 
Benefits paid
(518)
(503)
 
Funded status at end of year
(9,857)
(9,825)
 
Postretirement Benefit Plans |
Domestic Plans
 
 
 
Change in benefit obligation:
 
 
 
Benefit obligation at beginning of year
13,619 
14,573 
 
Service cost
92 
99 
152 
Interest cost
413 
573 
619 
Actuarial adjustments
237 
(790)
(1,248)
Plan amendments
816 
73 
 
Benefits paid
(1,370)
(909)
 
Benefit obligation at end of year
13,807 
13,619 
14,573 
Change in plan assets:
 
 
 
Company contributions
1,370 
909 
 
Benefits paid
(1,370)
(909)
 
Funded status at end of year
$ (13,807)
$ (13,619)
 
Pension and Postretirement Benefits - Net Amount Recognized in Consolidated Balance Sheets (Details) (USD $)
In Thousands, unless otherwise specified
Dec. 31, 2017
Dec. 31, 2016
Domestic Plans |
Pension Plans |
Funded Plans
 
 
Net amounts recognized in Viad's consolidated balance sheets under the caption Pension and postretirement benefits
 
 
Net amount recognized
$ 3,850 
$ 4,611 
Domestic Plans |
Pension Plans |
Unfunded Pension Plans
 
 
Net amounts recognized in Viad's consolidated balance sheets under the caption Pension and postretirement benefits
 
 
Net amount recognized
9,857 
9,825 
Domestic Plans |
Postretirement Benefit Plans
 
 
Net amounts recognized in Viad's consolidated balance sheets under the caption Pension and postretirement benefits
 
 
Net amount recognized
13,807 
13,619 
Foreign Pension Plans |
Funded Plans
 
 
Net amounts recognized in Viad's consolidated balance sheets under the caption Pension and postretirement benefits
 
 
Net amount recognized
28 
(88)
Foreign Pension Plans |
Unfunded Pension Plans
 
 
Net amounts recognized in Viad's consolidated balance sheets under the caption Pension and postretirement benefits
 
 
Net amount recognized
2,582 
2,486 
Non Current Assets |
Foreign Pension Plans |
Funded Plans
 
 
Net amounts recognized in Viad's consolidated balance sheets under the caption Pension and postretirement benefits
 
 
Net amount recognized
(15)
(88)
Other current liabilities |
Domestic Plans |
Pension Plans |
Unfunded Pension Plans
 
 
Net amounts recognized in Viad's consolidated balance sheets under the caption Pension and postretirement benefits
 
 
Net amount recognized
809 
699 
Other current liabilities |
Domestic Plans |
Postretirement Benefit Plans
 
 
Net amounts recognized in Viad's consolidated balance sheets under the caption Pension and postretirement benefits
 
 
Net amount recognized
1,112 
1,094 
Other current liabilities |
Foreign Pension Plans |
Unfunded Pension Plans
 
 
Net amounts recognized in Viad's consolidated balance sheets under the caption Pension and postretirement benefits
 
 
Net amount recognized
188 
170 
Non Current Liabilities |
Domestic Plans |
Pension Plans |
Funded Plans
 
 
Net amounts recognized in Viad's consolidated balance sheets under the caption Pension and postretirement benefits
 
 
Net amount recognized
3,850 
4,611 
Non Current Liabilities |
Domestic Plans |
Pension Plans |
Unfunded Pension Plans
 
 
Net amounts recognized in Viad's consolidated balance sheets under the caption Pension and postretirement benefits
 
 
Net amount recognized
9,048 
9,126 
Non Current Liabilities |
Domestic Plans |
Postretirement Benefit Plans
 
 
Net amounts recognized in Viad's consolidated balance sheets under the caption Pension and postretirement benefits
 
 
Net amount recognized
12,695 
12,525 
Non Current Liabilities |
Foreign Pension Plans |
Funded Plans
 
 
Net amounts recognized in Viad's consolidated balance sheets under the caption Pension and postretirement benefits
 
 
Net amount recognized
43 
 
Non Current Liabilities |
Foreign Pension Plans |
Unfunded Pension Plans
 
 
Net amounts recognized in Viad's consolidated balance sheets under the caption Pension and postretirement benefits
 
 
Net amount recognized
$ 2,394 
$ 2,316 
Pension and Postretirement Benefits - Amounts Recognized in AOCI (Details) (Domestic Plans, USD $)
In Thousands, unless otherwise specified
Dec. 31, 2017
Dec. 31, 2016
Pension Plans |
Funded Plans
 
 
Defined Benefit Plan Disclosure [Line Items]
 
 
Pension and Other Postretirement Benefit Plans, Accumulated Other Comprehensive Income (Loss), Net Gains (Losses), before Tax
$ 8,681 
$ 9,090 
Subtotal
8,681 
9,090 
Less tax effect
(3,292)
(3,447)
Total
5,389 
5,643 
Pension Plans |
Unfunded Pension Plans
 
 
Defined Benefit Plan Disclosure [Line Items]
 
 
Pension and Other Postretirement Benefit Plans, Accumulated Other Comprehensive Income (Loss), Net Gains (Losses), before Tax
2,587 
2,496 
Subtotal
2,587 
2,496 
Less tax effect
(981)
(947)
Total
1,606 
1,549 
Postretirement Benefit Plans
 
 
Defined Benefit Plan Disclosure [Line Items]
 
 
Pension and Other Postretirement Benefit Plans, Accumulated Other Comprehensive Income (Loss), Net Gains (Losses), before Tax
2,784 
2,710 
Prior service credit
(351)
(1,598)
Subtotal
2,433 
1,112 
Less tax effect
(923)
(422)
Total
1,510 
690 
US Postretirement and Pension Plan
 
 
Defined Benefit Plan Disclosure [Line Items]
 
 
Pension and Other Postretirement Benefit Plans, Accumulated Other Comprehensive Income (Loss), Net Gains (Losses), before Tax
14,052 
14,296 
Prior service credit
(351)
(1,598)
Subtotal
13,701 
12,698 
Less tax effect
(5,196)
(4,816)
Total
$ 8,505 
$ 7,882 
Pension and Postretirement Benefits - Narrative (Details) (USD $)
In Millions, unless otherwise specified
12 Months Ended
Dec. 31, 2017
Dec. 31, 2016
Dec. 31, 2015
Defined Benefit Plan Disclosure [Line Items]
 
 
 
Assumed health care cost trend rate
7.50% 
7.00% 
 
Decrease in assumed health care cost trend rate
4.50% 
4.50% 
 
Effect of one percentage point increase on accumulated post retirement benefit obligation
$ 1.4 
 
 
Effect of one percentage point increase in assumed health care cost trend rate on total service and interest cost components
0.1 
 
 
Effect of one percentage point decrease in assumed health care cost trend rate on accumulated post retirement benefit obligation
1.1 
 
 
Effect of one percentage point decrease in assumed health care cost trend rate on total service and interest cost components
0.1 
 
 
Maximum percentage of funding status of plans in red zone
65.00% 
 
 
Maximum percentage of funding status of plans in yellow zone
80.00% 
 
 
Maximum percentage of funding status of plans in green zone
80.00% 
 
 
401(k) plan [Member]
 
 
 
Defined Benefit Plan Disclosure [Line Items]
 
 
 
Percentage of employer matching contribution with employee gross pay
100.00% 
 
 
Percentage of employer matching contribution match with 100 percent
3.00% 
 
 
Percentage of employer matching contribution
50.00% 
 
 
Percentage of employer matching contribution match with 50 percent
2.00% 
 
 
Expense associated with other employee benefit plans
4.2 
3.9 
3.7 
Domestic Plans |
Unfunded Pension Plans
 
 
 
Defined Benefit Plan Disclosure [Line Items]
 
 
 
Estimated net actuarial loss for pension plans that is expected to be amortized
0.1 
 
 
Domestic Plans |
Funded Plans
 
 
 
Defined Benefit Plan Disclosure [Line Items]
 
 
 
Estimated net actuarial loss for pension plans that is expected to be amortized
0.4 
 
 
Foreign Pension Plans |
Funded Plans
 
 
 
Defined Benefit Plan Disclosure [Line Items]
 
 
 
Net actuarial losses for the foreign funded plans recognized in AOCI (before tax)
(2.5)
(3.3)
 
Net actuarial losses for the foreign funded plans recognized in AOCI (after tax)
(1.8)
(2.5)
 
Foreign Pension Plans |
Unfunded Pension Plans
 
 
 
Defined Benefit Plan Disclosure [Line Items]
 
 
 
Net actuarial losses for the foreign unfunded plans recognized in AOCI (before tax)
(0.7)
(0.4)
 
Net actuarial losses for the foreign unfunded plans recognized in AOCI (after tax)
(0.5)
(0.3)
 
Postretirement Benefit Plans
 
 
 
Defined Benefit Plan Disclosure [Line Items]
 
 
 
Amount expected to contribute in postretirement benefit plans
1.1 
 
 
Postretirement Benefit Plans |
Domestic Plans
 
 
 
Defined Benefit Plan Disclosure [Line Items]
 
 
 
Estimated net actuarial loss for pension plans that is expected to be amortized
0.2 
 
 
Estimated prior service credit for postretirement benefit plans
0.2 
 
 
Pension Plans |
Unfunded Pension Plans
 
 
 
Defined Benefit Plan Disclosure [Line Items]
 
 
 
Amount expected to contribute in unfunded pension plans
1.0 
 
 
Pension Plans |
Funded Plans
 
 
 
Defined Benefit Plan Disclosure [Line Items]
 
 
 
Amount expected to contribute in funded pension plans
$ 1.1 
 
 
Pension and Postretirement Benefits - Fair Value of the Plans' Assets by Asset Class (Details) (USD $)
In Thousands, unless otherwise specified
Dec. 31, 2017
Dec. 31, 2016
Domestic Plans
 
 
Defined Benefit Plan Disclosure [Line Items]
 
 
Fair value measurement domestic pension plans
$ 11,590 
$ 10,416 
Domestic Plans |
Aggregate fixed income securities
 
 
Defined Benefit Plan Disclosure [Line Items]
 
 
Fair value measurement domestic pension plans
5,787 
5,352 
Domestic Plans |
Equity Securities
 
 
Defined Benefit Plan Disclosure [Line Items]
 
 
Fair value measurement domestic pension plans
5,390 
4,580 
Domestic Plans |
Cash
 
 
Defined Benefit Plan Disclosure [Line Items]
 
 
Fair value measurement domestic pension plans
214 
280 
Domestic Plans |
Equity Securities
 
 
Defined Benefit Plan Disclosure [Line Items]
 
 
Fair value measurement domestic pension plans
199 
204 
Foreign Pension Plans
 
 
Defined Benefit Plan Disclosure [Line Items]
 
 
Fair value measurement domestic pension plans
9,493 
10,576 
Foreign Pension Plans |
Aggregate fixed income securities
 
 
Defined Benefit Plan Disclosure [Line Items]
 
 
Fair value measurement domestic pension plans
4,414 
4,082 
Foreign Pension Plans |
Equity Securities
 
 
Defined Benefit Plan Disclosure [Line Items]
 
 
Fair value measurement domestic pension plans
4,889 
4,518 
Foreign Pension Plans |
Equity Securities
 
 
Defined Benefit Plan Disclosure [Line Items]
 
 
Fair value measurement domestic pension plans
190 
1,976 
Quoted Prices in Active Markets (Level 1) |
Domestic Plans
 
 
Defined Benefit Plan Disclosure [Line Items]
 
 
Fair value measurement domestic pension plans
11,391 
10,212 
Quoted Prices in Active Markets (Level 1) |
Domestic Plans |
Aggregate fixed income securities
 
 
Defined Benefit Plan Disclosure [Line Items]
 
 
Fair value measurement domestic pension plans
5,787 
5,352 
Quoted Prices in Active Markets (Level 1) |
Domestic Plans |
Equity Securities
 
 
Defined Benefit Plan Disclosure [Line Items]
 
 
Fair value measurement domestic pension plans
5,390 
4,580 
Quoted Prices in Active Markets (Level 1) |
Domestic Plans |
Cash
 
 
Defined Benefit Plan Disclosure [Line Items]
 
 
Fair value measurement domestic pension plans
214 
280 
Quoted Prices in Active Markets (Level 1) |
Foreign Pension Plans
 
 
Defined Benefit Plan Disclosure [Line Items]
 
 
Fair value measurement domestic pension plans
9,070 
10,188 
Quoted Prices in Active Markets (Level 1) |
Foreign Pension Plans |
Aggregate fixed income securities
 
 
Defined Benefit Plan Disclosure [Line Items]
 
 
Fair value measurement domestic pension plans
4,414 
4,082 
Quoted Prices in Active Markets (Level 1) |
Foreign Pension Plans |
Equity Securities
 
 
Defined Benefit Plan Disclosure [Line Items]
 
 
Fair value measurement domestic pension plans
4,466 
4,130 
Quoted Prices in Active Markets (Level 1) |
Foreign Pension Plans |
Equity Securities
 
 
Defined Benefit Plan Disclosure [Line Items]
 
 
Fair value measurement domestic pension plans
190 
1,976 
Significant Other Observable Inputs (Level 2) |
Domestic Plans
 
 
Defined Benefit Plan Disclosure [Line Items]
 
 
Fair value measurement domestic pension plans
199 
204 
Significant Other Observable Inputs (Level 2) |
Domestic Plans |
Equity Securities
 
 
Defined Benefit Plan Disclosure [Line Items]
 
 
Fair value measurement domestic pension plans
199 
204 
Significant Other Observable Inputs (Level 2) |
Foreign Pension Plans
 
 
Defined Benefit Plan Disclosure [Line Items]
 
 
Fair value measurement domestic pension plans
423 
388 
Significant Other Observable Inputs (Level 2) |
Foreign Pension Plans |
Equity Securities
 
 
Defined Benefit Plan Disclosure [Line Items]
 
 
Fair value measurement domestic pension plans
$ 423 
$ 388 
Pension and Postretirement Benefits - Payments and Receipts Reflecting Expected Future Service (Details) (USD $)
In Thousands, unless otherwise specified
Dec. 31, 2017
Foreign Pension Plans |
Funded Plans
 
Expected future service expected to be paid
 
2018
$ 365 
2019
376 
2020
378 
2021
396 
2022
496 
2023-2027
2,499 
Foreign Pension Plans |
Unfunded Pension Plans
 
Expected future service expected to be paid
 
2018
191 
2019
190 
2020
190 
2021
190 
2022
189 
2023-2027
935 
Pension Plans |
Domestic Plans |
Funded Plans
 
Expected future service expected to be paid
 
2018
1,434 
2019
927 
2020
997 
2021
921 
2022
990 
2023-2027
4,859 
Pension Plans |
Domestic Plans |
Unfunded Pension Plans
 
Expected future service expected to be paid
 
2018
823 
2019
738 
2020
740 
2021
725 
2022
709 
2023-2027
3,259 
Postretirement Benefit Plans |
Domestic Plans
 
Expected future service expected to be paid
 
2018
1,132 
2019
1,127 
2020
1,100 
2021
1,066 
2022
1,039 
2023-2027
$ 4,685 
Pension and Postretirement Benefits - Accumulated Benefit Obligation in Excess of Plan Assets (Details) (USD $)
In Thousands, unless otherwise specified
Dec. 31, 2017
Dec. 31, 2016
Domestic Plans |
Funded Plans
 
 
Accumulated benefit obligation in excess of plan assets
 
 
Projected benefit obligation
$ 15,440 
$ 15,027 
Accumulated benefit obligation
15,440 
15,027 
Fair value of plan assets
11,590 
10,416 
Domestic Plans |
Unfunded Pension Plans
 
 
Accumulated benefit obligation in excess of plan assets
 
 
Projected benefit obligation
9,857 
9,825 
Accumulated benefit obligation
9,826 
9,737 
Foreign Pension Plans |
Funded Plans
 
 
Accumulated benefit obligation in excess of plan assets
 
 
Projected benefit obligation
9,521 
10,488 
Accumulated benefit obligation
8,819 
9,906 
Fair value of plan assets
9,493 
10,576 
Foreign Pension Plans |
Unfunded Pension Plans
 
 
Accumulated benefit obligation in excess of plan assets
 
 
Projected benefit obligation
2,582 
2,486 
Accumulated benefit obligation
$ 2,582 
$ 2,486 
Pension and Postretirement Benefits - Weighted-Average Assumptions Used to Determine Benefit Obligations (Details)
12 Months Ended
Dec. 31, 2017
Dec. 31, 2016
Foreign Pension Plans
 
 
Weighted-average assumptions used to determine benefit obligations
 
 
Discount rate
3.15% 
3.52% 
Rate of compensation increase
2.26% 
2.34% 
Defined Benefit Plan, Weighted Average Assumptions Used in Calculating Net Periodic Benefit Cost [Abstract]
 
 
Discount rate
3.71% 
3.77% 
Expected return on plan assets
5.09% 
4.53% 
Rate of compensation increase
2.26% 
2.34% 
Pension Plans |
Domestic Plans |
Funded Plans
 
 
Weighted-average assumptions used to determine benefit obligations
 
 
Discount rate
3.63% 
4.12% 
Defined Benefit Plan, Weighted Average Assumptions Used in Calculating Net Periodic Benefit Cost [Abstract]
 
 
Discount rate
4.07% 
4.33% 
Expected return on plan assets
5.50% 
2.25% 
Pension Plans |
Domestic Plans |
Unfunded Pension Plans
 
 
Weighted-average assumptions used to determine benefit obligations
 
 
Discount rate
3.55% 
3.99% 
Rate of compensation increase
3.00% 
3.00% 
Defined Benefit Plan, Weighted Average Assumptions Used in Calculating Net Periodic Benefit Cost [Abstract]
 
 
Discount rate
3.99% 
4.25% 
Rate of compensation increase
3.00% 
3.00% 
Postretirement Benefit Plans |
Domestic Plans
 
 
Weighted-average assumptions used to determine benefit obligations
 
 
Discount rate
3.59% 
4.08% 
Defined Benefit Plan, Weighted Average Assumptions Used in Calculating Net Periodic Benefit Cost [Abstract]
 
 
Discount rate
4.08% 
4.30% 
Expected return on plan assets
0.00% 
0.00% 
Pension and Postretirement Benefits - Multi-Employer Pension Plans (Details) (USD $)
In Thousands, unless otherwise specified
12 Months Ended
Dec. 31, 2017
Dec. 31, 2016
Dec. 31, 2015
Multi-employer pension plans
 
 
 
Viad Contributions
$ 26,573 
$ 25,772 
$ 21,988 
Western Conference of Teamsters Pension Plan
 
 
 
Multi-employer pension plans
 
 
 
EIN
916145047 
 
 
Plan No:
001 
 
 
Pension Protection Act Zone Status
Green 
Green 
 
FIP/RP Status Pending/ Implemented
No 
 
 
Viad Contributions
7,809 
6,684 
5,632 
Surcharge Paid
No 
 
 
Collective bargaining agreements expiration date
Mar. 31, 2020 
 
 
Southern California Local 831—Employer Pension Fund
 
 
 
Multi-employer pension plans
 
 
 
EIN
956376874 1
 
 
Plan No:
001 1
 
 
Pension Protection Act Zone Status
Green 1
Green 1
 
FIP/RP Status Pending/ Implemented
No 1
 
 
Viad Contributions
3,087 1
2,805 1
2,485 1
Surcharge Paid
No 1
 
 
Collective bargaining agreements expiration date
Aug. 31, 2019 1
 
 
Chicago Regional Council of Carpenters Pension Fund
 
 
 
Multi-employer pension plans
 
 
 
EIN
366130207 
 
 
Plan No:
001 
 
 
Pension Protection Act Zone Status
Green 
Yellow 
 
FIP/RP Status Pending/ Implemented
Implemented 
 
 
Viad Contributions
2,390 
2,532 
1,887 
Surcharge Paid
No 
 
 
Collective bargaining agreements expiration date
May 31, 2019 
 
 
IBEW Local Union No 357 Pension Plan A
 
 
 
Multi-employer pension plans
 
 
 
EIN
886023284 
 
 
Plan No:
001 
 
 
Pension Protection Act Zone Status
Green 
Green 
 
FIP/RP Status Pending/ Implemented
No 
 
 
Viad Contributions
1,682 
1,402 
1,150 
Surcharge Paid
No 
 
 
Collective bargaining agreements expiration date
Jun. 16, 2018 
 
 
Machinery Movers Riggers & Mach Erect Local 136 Supplemental Retirement Plan(1),
 
 
 
Multi-employer pension plans
 
 
 
EIN
361416355 1
 
 
Plan No:
011 1
 
 
Pension Protection Act Zone Status
Red 1
Red 1
 
FIP/RP Status Pending/ Implemented
Implemented 1
 
 
Viad Contributions
719 1
1,203 1
502 1
Surcharge Paid
Yes 1
 
 
Collective bargaining agreements expiration date
Jun. 30, 2019 1
 
 
Central States, Southeast and Southwest Areas Pension Plan
 
 
 
Multi-employer pension plans
 
 
 
EIN
366044243 
 
 
Plan No:
001 
 
 
Pension Protection Act Zone Status
Red 
Red 
 
FIP/RP Status Pending/ Implemented
Implemented 
 
 
Viad Contributions
1,060 
1,151 
948 
Surcharge Paid
No 
 
 
Collective bargaining agreements expiration date
Dec. 31, 2018 
 
 
Electrical Contractors Assoc. Chicago Local Union 134, IBEW Joint Pension Trust of Chicago Plan 2
 
 
 
Multi-employer pension plans
 
 
 
EIN
516030753 
 
 
Plan No:
002 
 
 
Pension Protection Act Zone Status
Green 
Green 
 
FIP/RP Status Pending/ Implemented
No 
 
 
Viad Contributions
1,099 
845 
1,190 
Surcharge Paid
No 
 
 
Collective bargaining agreements expiration date
Jun. 06, 2021 
 
 
Southwest Carpenters Pension Trust
 
 
 
Multi-employer pension plans
 
 
 
EIN
956042875 
 
 
Plan No:
001 
 
 
Pension Protection Act Zone Status
Green 
Green 
 
FIP/RP Status Pending/ Implemented
No 
 
 
Viad Contributions
883 
791 
750 
Surcharge Paid
No 
 
 
Collective bargaining agreements expiration date
Jun. 30, 2018 
 
 
Southern California IBEW-NECA Pension Fund
 
 
 
Multi-employer pension plans
 
 
 
EIN
956392774 
 
 
Plan No:
001 
 
 
Pension Protection Act Zone Status
Yellow 
Yellow 
 
FIP/RP Status Pending/ Implemented
Implemented 
 
 
Viad Contributions
905 
701 
835 
Surcharge Paid
Yes 
 
 
New England Teamsters & Trucking Industry Pension
 
 
 
Multi-employer pension plans
 
 
 
EIN
046372430 
 
 
Plan No:
001 
 
 
Pension Protection Act Zone Status
Red 
Red 
 
FIP/RP Status Pending/ Implemented
Implemented 
 
 
Viad Contributions
772 
552 
381 
Surcharge Paid
No 
 
 
Collective bargaining agreements expiration date
Mar. 31, 2022 
 
 
Sign Pictorial & Display Industry Pension Plan
 
 
 
Multi-employer pension plans
 
 
 
EIN
946278490 1
 
 
Plan No:
001 1
 
 
Pension Protection Act Zone Status
Green 1
Green 1
 
FIP/RP Status Pending/ Implemented
No 1
 
 
Viad Contributions
654 1
526 1
541 1
Surcharge Paid
No 1
 
 
Collective bargaining agreements expiration date
Mar. 31, 2018 1
 
 
All other funds
 
 
 
Multi-employer pension plans
 
 
 
Viad Contributions
2,900 2
3,585 2
4,259 2
Pension Plans
 
 
 
Multi-employer pension plans
 
 
 
Viad Contributions
23,960 
22,777 
20,560 
Total contributions to other plans
 
 
 
Multi-employer pension plans
 
 
 
Viad Contributions
$ 2,613 
$ 2,995 
$ 1,428 
Pension and Postretirement Benefits - Multi-Employer Pension Plans (Parenthetical) (Details)
12 Months Ended
Dec. 31, 2017
PensionFund
Compensation And Retirement Disclosure [Abstract]
 
Percentage of excess employer contributions
5.00% 
Aggregate number of funds
35 
Restructuring Charges - Changes to Restructuring Liability by Major Restructuring Activity (Details) (USD $)
In Thousands, unless otherwise specified
3 Months Ended 12 Months Ended
Dec. 31, 2017
Sep. 30, 2017
Jun. 30, 2017
Mar. 31, 2017
Dec. 31, 2016
Sep. 30, 2016
Jun. 30, 2016
Mar. 31, 2016
Dec. 31, 2017
Dec. 31, 2016
Dec. 31, 2015
Restructuring Cost And Reserve [Line Items]
 
 
 
 
 
 
 
 
 
 
 
Beginning balance
 
 
 
$ 3,782 
 
 
 
$ 2,276 
$ 3,782 
$ 2,276 
$ 1,944 
Restructuring charges
187 
255 
168 
394 
1,519 
1,697 
975 
992 
1,004 
5,183 
2,956 
Cash payments
 
 
 
 
 
 
 
 
(2,253)
(3,866)
(2,572)
Adjustment to liability
 
 
 
 
 
 
 
 
16 
189 
(52)
Ending balance
2,549 
 
 
 
3,782 
 
 
 
2,549 
3,782 
2,276 
GES Consolidation |
Severance & Employee Benefits
 
 
 
 
 
 
 
 
 
 
 
Restructuring Cost And Reserve [Line Items]
 
 
 
 
 
 
 
 
 
 
 
Beginning balance
 
 
 
2,274 
 
 
 
751 
2,274 
751 
543 
Restructuring charges
 
 
 
 
 
 
 
 
442 
3,693 
1,767 
Cash payments
 
 
 
 
 
 
 
 
(1,165)
(2,170)
(1,514)
Adjustment to liability
 
 
 
 
 
 
 
 
 
 
(45)
Ending balance
1,551 
 
 
 
2,274 
 
 
 
1,551 
2,274 
751 
GES Consolidation |
Facilities
 
 
 
 
 
 
 
 
 
 
 
Restructuring Cost And Reserve [Line Items]
 
 
 
 
 
 
 
 
 
 
 
Beginning balance
 
 
 
1,092 
 
 
 
1,291 
1,092 
1,291 
1,161 
Restructuring charges
 
 
 
 
 
 
 
 
265 
759 
587 
Cash payments
 
 
 
 
 
 
 
 
(550)
(1,150)
(457)
Adjustment to liability
 
 
 
 
 
 
 
 
 
192 
 
Ending balance
807 
 
 
 
1,092 
 
 
 
807 
1,092 
1,291 
Other Restructuring |
Severance & Employee Benefits
 
 
 
 
 
 
 
 
 
 
 
Restructuring Cost And Reserve [Line Items]
 
 
 
 
 
 
 
 
 
 
 
Beginning balance
 
 
 
416 
 
 
 
234 
416 
234 
240 
Restructuring charges
 
 
 
 
 
 
 
 
297 
731 
602 
Cash payments
 
 
 
 
 
 
 
 
(538)
(546)
(601)
Adjustment to liability
 
 
 
 
 
 
 
 
16 
(3)
(7)
Ending balance
$ 191 
 
 
 
$ 416 
 
 
 
$ 191 
$ 416 
$ 234 
Leases and Other - Narrative (Details) (USD $)
In Millions, unless otherwise specified
12 Months Ended
Dec. 31, 2017
Leases and Other (Textual) [Abstract]
 
Lease expiration period
40 years 
Aggregate purchase obligation
$ 38.1 
Leases and Other - Net Rent Expense Under Operating Leases (Details) (USD $)
In Thousands, unless otherwise specified
12 Months Ended
Dec. 31, 2017
Dec. 31, 2016
Dec. 31, 2015
Net rent expense under operating leases
 
 
 
Minimum rentals
$ 56,575 
$ 48,465 
$ 41,564 
Sublease rentals
(1,525)
(2,831)
(3,457)
Total rentals, net
$ 55,050 
$ 45,634 
$ 38,107 
Litigation, Claims, Contingencies and Other - Narrative (Details) (USD $)
12 Months Ended
Dec. 31, 2017
Agreement
Dec. 31, 2016
Dec. 31, 2015
Loss Contingencies [Line Items]
 
 
 
Environmental remediation liability
$ 2,400,000 
 
 
Maximum potential amount of future payments
19,300,000 
 
 
Guarantees relate to facilities leased by the company
2027-10 
 
 
Recourse provision to recover guarantees
 
 
Bargaining agreements
100 
 
 
Self insurance reserve
19,100,000 
 
 
Workers' compensation liability
13,800,000 
 
 
Self insurance reserve for general and auto
5,300,000 
 
 
Self insurance reserve on discontinued operations
2,900,000 
 
 
Payments for self insurance
5,500,000 
5,000,000 
5,600,000 
Self insurance reserve in which company is the primary obligor
10,400,000 
 
 
Self insurance reserve in which company is the primary obligor for workers compensation
6,900,000 
 
 
Self insurance reserve in which company is the primary obligor for general liability
3,500,000 
 
 
Minimum
 
 
 
Loss Contingencies [Line Items]
 
 
 
General range on claims
200,000 
 
 
Maximum
 
 
 
Loss Contingencies [Line Items]
 
 
 
General range on claims
$ 500,000 
 
 
Redeemable Noncontrolling Interest - Narrative (Details) (Esja Attractions ehf., EUR €)
12 Months Ended
Dec. 31, 2017
Nov. 3, 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”) and 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 
 
Redeemable Noncontrolling Interest - Summary of Changes in Redeemable Noncontrolling Interests (Details) (USD $)
In Thousands, unless otherwise specified
12 Months Ended
Dec. 31, 2017
Noncontrolling Interest [Abstract]
 
Redeemable noncontrolling interest related to 2017 acquisition
$ 6,735 
Adjustment to the redemption value
(30)
Foreign currency translation adjustment
(57)
Balance at December 31, 2017
$ 6,648 
Segment Information - Reconciliation of Income Statement Items from Reportable Segments (Details) (USD $)
In Thousands, unless otherwise specified
3 Months Ended 12 Months Ended
Dec. 31, 2017
Sep. 30, 2017
Jun. 30, 2017
Mar. 31, 2017
Dec. 31, 2016
Sep. 30, 2016
Jun. 30, 2016
Mar. 31, 2016
Dec. 31, 2017
Dec. 31, 2016
Dec. 31, 2015
Reportable segments reconciliations:
 
 
 
 
 
 
 
 
 
 
 
Total revenue
$ 277,285 
$ 339,099 
$ 364,774 
$ 325,807 
$ 256,396 
$ 382,465 
$ 324,747 
$ 241,362 
$ 1,306,965 
$ 1,204,970 
$ 1,089,048 
Segment operating income
(7,698)
66,804 
38,473 
12,064 
(6,015)
54,328 
30,332 
(9,183)
84,241 
74,863 
44,864 
Interest income
 
 
 
 
 
 
 
 
319 
1,165 
658 
Interest expense
 
 
 
 
 
 
 
 
(8,304)
(5,898)
(4,535)
Impairment recoveries (charges)
 
24,467 
2,247 
2,384 
(98)
(120)
 
 
29,098 
(218)
(96)
Income from continuing operations before income taxes
 
 
 
 
 
 
 
 
104,350 
64,729 
37,935 
Pursuit
 
 
 
 
 
 
 
 
 
 
 
Reportable segments reconciliations:
 
 
 
 
 
 
 
 
 
 
 
Impairment recoveries (charges)
 
 
 
 
 
 
 
 
 
(200)
(100)
Operating Segments
 
 
 
 
 
 
 
 
 
 
 
Reportable segments reconciliations:
 
 
 
 
 
 
 
 
 
 
 
Segment operating income
 
 
 
 
 
 
 
 
97,051 
85,928 
54,584 
Operating Segments |
GES
 
 
 
 
 
 
 
 
 
 
 
Reportable segments reconciliations:
 
 
 
 
 
 
 
 
 
 
 
Total revenue
 
 
 
 
 
 
 
 
1,133,097 
1,054,739 
976,878 
Segment operating income
 
 
 
 
 
 
 
 
49,969 
50,223 
26,774 
Operating Segments |
Pursuit
 
 
 
 
 
 
 
 
 
 
 
Reportable segments reconciliations:
 
 
 
 
 
 
 
 
 
 
 
Total revenue
 
 
 
 
 
 
 
 
173,868 
153,364 
112,170 
Segment operating income
 
 
 
 
 
 
 
 
47,082 
35,705 
27,810 
Restructuring recoveries (charges)
 
 
 
 
 
 
 
 
(86)
(171)
(200)
Impairment recoveries (charges)
 
 
 
 
 
 
 
 
29,098 
(218)
(96)
Intersegment Eliminations |
GES
 
 
 
 
 
 
 
 
 
 
 
Reportable segments reconciliations:
 
 
 
 
 
 
 
 
 
 
 
Total revenue
 
 
 
 
 
 
 
 
(21,769)
(20,172)
(16,638)
Corporate Eliminations
 
 
 
 
 
 
 
 
 
 
 
Reportable segments reconciliations:
 
 
 
 
 
 
 
 
 
 
 
Total revenue
 
 
 
 
 
 
 
 
 
(3,133)1
 
Segment operating income
 
 
 
 
 
 
 
 
67 1
(743)1
 
Corporate
 
 
 
 
 
 
 
 
 
 
 
Reportable segments reconciliations:
 
 
 
 
 
 
 
 
 
 
 
Segment operating income
 
 
 
 
 
 
 
 
(12,877)
(10,322)
(9,720)
Restructuring recoveries (charges)
 
 
 
 
 
 
 
 
(211)
(560)
(402)
U.S.
 
 
 
 
 
 
 
 
 
 
 
Reportable segments reconciliations:
 
 
 
 
 
 
 
 
 
 
 
Total revenue
 
 
 
 
 
 
 
 
913,210 
855,304 
726,436 
U.S. |
Operating Segments |
GES
 
 
 
 
 
 
 
 
 
 
 
Reportable segments reconciliations:
 
 
 
 
 
 
 
 
 
 
 
Total revenue
 
 
 
 
 
 
 
 
872,154 
826,408 
720,882 
Segment operating income
 
 
 
 
 
 
 
 
34,494 
40,524 
14,563 
Restructuring recoveries (charges)
 
 
 
 
 
 
 
 
354 
(2,893)
(541)
International |
Operating Segments |
GES
 
 
 
 
 
 
 
 
 
 
 
Reportable segments reconciliations:
 
 
 
 
 
 
 
 
 
 
 
Total revenue
 
 
 
 
 
 
 
 
282,712 
248,503 
272,634 
Segment operating income
 
 
 
 
 
 
 
 
15,475 
9,699 
12,211 
Restructuring recoveries (charges)
 
 
 
 
 
 
 
 
$ (1,061)
$ (1,559)
$ (1,813)
Segment Information - Reconciliation of Assets from Reportable Segments (Details) (USD $)
In Thousands, unless otherwise specified
12 Months Ended
Dec. 31, 2017
Dec. 31, 2016
Dec. 31, 2015
Reconciliation of assets from segment
 
 
 
Total Assets
$ 919,899 
$ 869,816 
$ 690,723 
Total Depreciation and Amortization
55,114 
42,743 
35,231 
Capital expenditures
56,621 
49,815 
29,839 
GES |
U.S.
 
 
 
Reconciliation of assets from segment
 
 
 
Total Assets
380,909 
380,951 
294,618 
Total Depreciation and Amortization
29,088 
21,473 
18,658 
Capital expenditures
17,337 
14,291 
8,066 
GES |
International
 
 
 
Reconciliation of assets from segment
 
 
 
Total Assets
135,917 
109,705 
115,494 
Total Depreciation and Amortization
8,176 
8,092 
8,435 
Capital expenditures
8,084 
5,033 
8,366 
Pursuit
 
 
 
Reconciliation of assets from segment
 
 
 
Total Assets
350,256 
301,941 
195,527 
Total Depreciation and Amortization
17,653 
12,967 
7,974 
Capital expenditures
30,786 
31,861 
13,107 
Corporate and other
 
 
 
Reconciliation of assets from segment
 
 
 
Total Assets
52,817 
77,219 
85,084 
Total Depreciation and Amortization
197 
211 
164 
Capital expenditures
$ 414 1
$ (1,370)1
$ 300 1
Segment Information - Financial Information by Major Geographic Area (Details) (USD $)
In Thousands, unless otherwise specified
3 Months Ended 12 Months Ended
Dec. 31, 2017
Sep. 30, 2017
Jun. 30, 2017
Mar. 31, 2017
Dec. 31, 2016
Sep. 30, 2016
Jun. 30, 2016
Mar. 31, 2016
Dec. 31, 2017
Dec. 31, 2016
Dec. 31, 2015
Revenue:
 
 
 
 
 
 
 
 
 
 
 
Total revenue
$ 277,285 
$ 339,099 
$ 364,774 
$ 325,807 
$ 256,396 
$ 382,465 
$ 324,747 
$ 241,362 
$ 1,306,965 
$ 1,204,970 
$ 1,089,048 
Long-lived assets:
 
 
 
 
 
 
 
 
 
 
 
Total long-lived assets
353,083 
 
 
 
324,155 
 
 
 
353,083 
324,155 
226,870 
United States
 
 
 
 
 
 
 
 
 
 
 
Revenue:
 
 
 
 
 
 
 
 
 
 
 
Total revenue
 
 
 
 
 
 
 
 
913,210 
855,304 
726,436 
Long-lived assets:
 
 
 
 
 
 
 
 
 
 
 
Total long-lived assets
180,345 
 
 
 
182,611 
 
 
 
180,345 
182,611 
139,479 
EMEA
 
 
 
 
 
 
 
 
 
 
 
Revenue:
 
 
 
 
 
 
 
 
 
 
 
Total revenue
 
 
 
 
 
 
 
 
209,824 
205,028 
220,046 
Long-lived assets:
 
 
 
 
 
 
 
 
 
 
 
Total long-lived assets
43,630 
 
 
 
37,083 
 
 
 
43,630 
37,083 
15,714 
Canada
 
 
 
 
 
 
 
 
 
 
 
Revenue:
 
 
 
 
 
 
 
 
 
 
 
Total revenue
 
 
 
 
 
 
 
 
183,931 
144,638 
142,566 
Long-lived assets:
 
 
 
 
 
 
 
 
 
 
 
Total long-lived assets
$ 129,108 
 
 
 
$ 104,461 
 
 
 
$ 129,108 
$ 104,461 
$ 71,677 
Common Stock Repurchases - Narrative (Details) (USD $)
In Millions, except Share data, unless otherwise specified
12 Months Ended
Dec. 31, 2017
Dec. 31, 2016
Dec. 31, 2015
Common Stock Repurchases (Textual) [Abstract]
 
 
 
Repurchased shares
141,462 
Common stock purchased for treasury
 
 
$ 3.8 
Shares remain available for repurchase
440,540 
 
 
Repurchased shares tax withholding
41,532 
25,432 
35,649 
Share repurchased relating to tax withholding requirements
$ 2.1 
$ 0.7 
$ 1.0 
Selected Quarterly Financial Information (Unaudited) - Schedule of Quarterly Financial Information (Details) (USD $)
In Thousands, except Per Share data, unless otherwise specified
3 Months Ended 12 Months Ended
Dec. 31, 2017
Sep. 30, 2017
Jun. 30, 2017
Mar. 31, 2017
Dec. 31, 2016
Sep. 30, 2016
Jun. 30, 2016
Mar. 31, 2016
Dec. 31, 2017
Dec. 31, 2016
Dec. 31, 2015
Quarterly Financial Information Disclosure [Abstract]
 
 
 
 
 
 
 
 
 
 
 
Revenue:
$ 277,285 
$ 339,099 
$ 364,774 
$ 325,807 
$ 256,396 
$ 382,465 
$ 324,747 
$ 241,362 
$ 1,306,965 
$ 1,204,970 
$ 1,089,048 
Operating income (loss):
 
 
 
 
 
 
 
 
 
 
 
Ongoing operations
(4,726)1
47,066 1
39,402 1
12,684 1
(1,466)1
58,917 1
34,014 1
(6,280)1
 
 
 
Corporate activities
(2,785)
(4,474)
(3,008)
(2,610)
(2,932)
(2,772)
(2,707)
(1,911)
 
 
 
Restructuring charges
(187)
(255)
(168)
(394)
(1,519)
(1,697)
(975)
(992)
(1,004)
(5,183)
(2,956)
Impairment recoveries (charges)
 
24,467 
2,247 
2,384 
(98)
(120)
 
 
29,098 
(218)
(96)
Operating income (loss)
(7,698)
66,804 
38,473 
12,064 
(6,015)
54,328 
30,332 
(9,183)
84,241 
74,863 
44,864 
Income (loss) from continuing operations attributable to Viad
(21,814)
44,758 
27,438 
7,593 
(4,136)
34,013 
19,873 
(6,797)
58,452 
43,479 
27,442 
Net income (loss) attributable to Viad
$ (21,674)
$ 44,657 
$ 27,947 
$ 6,777 
$ (4,049)
$ 33,792 
$ 19,509 
$ (6,983)
$ 57,707 
$ 42,269 
$ 26,606 
Basic and Diluted income (loss) per common share:
 
 
 
 
 
 
 
 
 
 
 
Continuing operations attributable to Viad
$ (1.08)2
$ 2.19 2
$ 1.35 2
$ 0.37 2
$ (0.21)2
$ 1.68 2
$ 0.98 2
$ (0.34)2
 
 
 
Net income (loss) attributable to Viad common stockholders
$ (1.07)2
$ 2.19 2
$ 1.37 2
$ 0.33 2
$ (0.20)2
$ 1.67 2
$ 0.96 2
$ (0.35)2
 
 
 
Schedule II - Valuation And Qualifying Accounts (Details) (USD $)
In Thousands, unless otherwise specified
12 Months Ended
Dec. 31, 2017
Dec. 31, 2016
Dec. 31, 2015
Allowances for doubtful accounts
 
 
 
Movement in Valuation Allowances and Reserves [Roll Forward]
 
 
 
Balance at beginning of Year
$ 1,342 
$ 1,593 
$ 1,258 
Additions Charged to Expense
2,470 
1,355 
955 
Additions Charged to Other Accounts
49 
41 
574 
Write Offs
(1,529)
(1,602)
(1,162)
Other
(309)1
(45)1
(32)1
Balance at end of Year
2,023 
1,342 
1,593 
Deferred tax valuation allowance
 
 
 
Movement in Valuation Allowances and Reserves [Roll Forward]
 
 
 
Balance at beginning of Year
3,998 
2,837 
3,295 
Additions Charged to Expense
1,385 
1,406 
 
Additions Charged to Other Accounts
 
 
402 
Write Offs
(1,595)
(176)
(860)
Other
222 1
(69)1
 
Balance at end of Year
$ 4,010 
$ 3,998 
$ 2,837