VIAD CORP, 10-Q filed on 8/7/2015
Quarterly Report
Document and Entity Information
6 Months Ended
Jun. 30, 2015
Jul. 31, 2015
Document and Entity Information [Abstract]
 
 
Entity Registrant Name
VIAD CORP 
 
Entity Central Index Key
0000884219 
 
Document Type
10-Q 
 
Document Period End Date
Jun. 30, 2015 
 
Amendment Flag
false 
 
Document Fiscal Year Focus
2015 
 
Document Fiscal Period Focus
Q2 
 
Current Fiscal Year End Date
--12-31 
 
Entity Filer Category
Accelerated Filer 
 
Entity Common Stock, Shares Outstanding
 
20,079,298 
Consolidated Balance Sheets (USD $)
In Thousands, unless otherwise specified
Jun. 30, 2015
Dec. 31, 2014
Current assets
 
 
Cash and cash equivalents
$ 64,857 
$ 56,990 
Accounts receivable, net of allowance for doubtful accounts of $2,157 and $1,258, respectively
120,491 
78,121 
Inventories
30,505 
32,401 
Deferred income taxes
23,042 
22,943 
Other current assets
19,551 
17,440 
Total current assets
258,446 
207,895 
Property and equipment, net
192,009 
199,571 
Other investments and assets
40,809 
40,674 
Deferred income taxes
28,638 
29,639 
Goodwill
190,035 
194,197 
Other intangible assets, net
37,374 
42,967 
Total Assets
747,311 
714,943 
Current liabilities
 
 
Accounts payable
84,207 
61,789 
Customer deposits
41,886 
32,720 
Accrued compensation
20,508 
20,736 
Other current liabilities
35,526 
27,787 
Current portion of debt and capital lease obligations
29,532 
27,856 
Total current liabilities
211,659 
170,888 
Long-term debt and capital lease obligations
103,732 
113,164 
Pension and postretirement benefits
32,951 
33,427 
Other deferred items and liabilities
47,392 
49,762 
Total liabilities
395,734 
367,241 
Commitments and contingencies
   
   
Viad stockholders’ equity:
 
 
Common stock, $1.50 par value, 200,000,000 shares authorized, 24,934,981 shares issued
37,402 
37,402 
Additional capital
577,315 
582,066 
Retained deficit
(20,104)
(36,427)
Unearned employee benefits and other
23 
23 
Accumulated other comprehensive income (loss):
 
 
Unrealized gain on investments
605 
471 
Cumulative foreign currency translation adjustments
789 
12,416 
Unrecognized net actuarial loss and prior service credit, net
(13,311)
(13,476)
Common stock in treasury, at cost, 4,848,238 and 4,842,621 shares, respectively
(243,283)
(247,088)
Total Viad stockholders’ equity
339,436 
335,387 
Noncontrolling interest
12,141 
12,315 
Total stockholders’ equity
351,577 
347,702 
Total Liabilities and Stockholders’ Equity
$ 747,311 
$ 714,943 
Consolidated Balance Sheets (Parenthetical) (USD $)
In Thousands, except Share data, unless otherwise specified
Jun. 30, 2015
Dec. 31, 2014
Statement of Financial Position [Abstract]
 
 
Allowance for doubtful accounts
$ 2,157 
$ 1,258 
Common stock, par value
$ 1.5 
$ 1.50 
Common stock, shares authorized
200,000,000 
200,000,000 
Common stock, shares issued
24,934,981 
24,934,981 
Treasury stock, shares
4,848,238 
4,842,621 
Consolidated Statements of Operations (USD $)
In Thousands, except Per Share data, unless otherwise specified
3 Months Ended 6 Months Ended
Jun. 30, 2015
Jun. 30, 2014
Jun. 30, 2015
Jun. 30, 2014
Revenue:
 
 
 
 
Exhibition and event services
$ 237,614 
$ 185,486 
$ 450,866 
$ 417,269 
Exhibits and environments
48,955 
41,100 
92,631 
87,140 
Travel and recreation services
30,466 
29,805 
37,934 
37,623 
Total revenue
317,035 
256,391 
581,431 
542,032 
Costs and expenses:
 
 
 
 
Costs of services
236,868 
200,635 
462,129 
430,217 
Costs of products sold
43,881 
41,620 
84,141 
84,318 
Corporate activities
1,983 
1,991 
4,793 
4,030 
Interest income
(443)
(54)
(506)
(119)
Interest expense
1,103 
309 
2,254 
607 
Restructuring charges
1,069 
1,365 
1,285 
1,576 
Impairment charges
884 
884 
Total costs and expenses
284,461 
246,750 
554,096 
521,513 
Income from continuing operations before income taxes
32,574 
9,641 
27,335 
20,519 
Income tax expense
10,372 
1,796 
7,105 
3,493 
Income from continuing operations
22,202 
7,845 
20,230 
17,026 
Income (loss) from discontinued operations
78 
(1,236)
(70)
14,002 
Net income
22,280 
6,609 
20,160 
31,028 
Net loss (income) attributable to noncontrolling interest
109 
133 
173 
(2,404)
Net income attributable to Viad
22,389 
6,742 
20,333 
28,624 
Diluted income (loss) per common share:
 
 
 
 
Income from continuing operations attributable to Viad common stockholders (USD per share)
$ 1.11 
$ 0.39 
$ 1.02 
$ 0.85 
Income from discontinued operations attributable to Viad common stockholders (USD per share)
$ 0.01 
$ (0.06)
$ (0.01)
$ 0.56 
Net income attributable to Viad common stockholders (USD per share)
$ 1.12 
$ 0.33 
$ 1.01 1
$ 1.41 1
Weighted-average outstanding and potentially dilutive common shares
19,918 
20,149 
19,933 
20,262 
Basic income (loss) per common share:
 
 
 
 
Income from continuing operations attributable to Viad common stockholders (USD per share)
$ 1.11 
$ 0.39 
$ 1.02 
$ 0.85 
Income from discontinued operations attributable to Viad common stockholders (USD per share)
$ 0.01 
$ (0.06)
$ (0.01)
$ 0.56 
Net income attributable to Viad common stockholders (USD per share)
$ 1.12 
$ 0.33 
$ 1.01 
$ 1.41 
Weighted-average outstanding common shares
19,778 
19,869 
19,757 
19,909 
Dividends declared per common share
$ 0.1 
$ 0.1 
$ 0.2 
$ 1.7 
Amounts attributable to Viad common stockholders
 
 
 
 
Income from continuing operations
22,311 
7,978 
20,403 
17,290 
Income (loss) from discontinued operations
78 
(1,236)
(70)
11,334 
Net income attributable to Viad
$ 22,389 
$ 6,742 
$ 20,333 
$ 28,624 
Consolidated Statements of Comprehensive Income (USD $)
In Thousands, unless otherwise specified
3 Months Ended 6 Months Ended
Jun. 30, 2015
Jun. 30, 2014
Jun. 30, 2015
Jun. 30, 2014
Statement of Comprehensive Income [Abstract]
 
 
 
 
Net income
$ 22,280 
$ 6,609 
$ 20,160 
$ 31,028 
Other comprehensive income:
 
 
 
 
Unrealized gains (losses) on investments, net of tax(1)
(26)1
41 1
133 1
50 1
Unrealized foreign currency translation adjustments, net of tax(1)
5,953 1
6,582 1
(11,626)1
(151)1
Amortization of net actuarial gain, net of tax(1)
168 1
127 1
336 1
255 1
Amortization of prior service credit, net of tax(1)
(85)1
(126)1
(171)1
(218)1
Comprehensive income
28,290 
13,233 
8,832 
30,964 
Comprehensive (income) loss attributable to noncontrolling interest
109 
133 
173 
(2,404)
Comprehensive income attributable to Viad
$ 28,399 
$ 13,366 
$ 9,005 
$ 28,560 
Consolidated Statements of Cash Flows (USD $)
In Thousands, unless otherwise specified
6 Months Ended
Jun. 30, 2015
Jun. 30, 2014
Cash flows from operating activities
 
 
Net income
$ 20,160 
$ 31,028 
Adjustments to reconcile net income to net cash provided by operating activities:
 
 
Depreciation and amortization
17,870 
13,959 
Deferred income taxes
(1,147)
8,521 
(Income) loss from discontinued operations
70 
(14,002)
Restructuring charges
1,285 
1,576 
Impairment charges
884 
Gains on dispositions of property and other assets
(222)
(391)
Share-based compensation expense
2,106 
1,503 
Excess tax benefit from share-based compensation arrangements
(232)
(41)
Other non-cash items, net
3,493 
3,271 
Change in operating assets and liabilities (excluding the impact of acquisitions):
 
 
Receivables
(43,036)
(32,150)
Inventories
1,896 
(12,025)
Accounts payable
22,860 
25,115 
Restructuring liabilities
(1,669)
(3,001)
Accrued compensation
(1,128)
1,971 
Customer deposits
9,166 
13,470 
Income taxes payable
1,905 
889 
Other assets and liabilities, net
4,643 
(12,412)
Net cash provided by operating activities
38,020 
28,165 
Cash flows from investing activities
 
 
Capital expenditures
(13,150)
(13,404)
Cash paid for acquired business
(123)
Proceeds from dispositions of property and other assets
751 
417 
Proceeds from possessory interest and personal property—discontinued operations
25,000 
Net cash provided by (used in) investing activities
(12,522)
12,013 
Cash flows from financing activities
 
 
Proceeds from borrowings
30,000 
25,000 
Payments on debt and capital lease obligations
(38,100)
(25,476)
Dividends paid on common stock
(4,008)
(34,534)
Common stock purchased for treasury
(5,969)
(11,610)
Excess tax benefit from share-based compensation arrangements
232 
41 
Proceeds from exercise of stock options
2,135 
1,155 
Net cash used in financing activities
(15,710)
(45,424)
Effect of exchange rate changes on cash and cash equivalents
(1,921)
(344)
Net change in cash and cash equivalents
7,867 
(5,590)
Cash and cash equivalents, beginning of year
56,990 
45,821 
Cash and cash equivalents, end of period
64,857 
40,231 
Supplemental disclosure of cash flow information
 
 
Cash paid for income taxes
2,792 
5,025 
Cash paid for interest
1,659 
501 
Property and equipment acquired under capital leases
370 
253 
Property and equipment purchases in accounts payable and accrued liabilities
$ 338 
$ 2,396 
Basis of Presentation and Principles of Consolidation
Basis of Presentation and Principles of Consolidation
Basis of Presentation and Principles of Consolidation
The accompanying unaudited, condensed consolidated financial statements of Viad Corp (“Viad” or the “Company”) have been prepared in accordance with accounting principles generally accepted in the United States of America (“GAAP”) for interim financial information and with the instructions to Form 10-Q and Article 10 of Regulation S-X. Accordingly, they do not include all of the information and footnotes required for complete financial statements. The condensed consolidated financial statements of Viad include the accounts of Viad and all of its subsidiaries. All significant intercompany account balances and transactions between Viad and its subsidiaries have been eliminated in consolidation.
In the opinion of management, all adjustments (consisting of normal recurring accruals) considered necessary for a fair presentation have been included. Operating results for the six months ended June 30, 2015 are not necessarily indicative of the results that may be expected for the year ending December 31, 2015.
For further information, refer to the consolidated financial statements and related footnotes for the year ended December 31, 2014 included in the Company’s Form 10-K, filed with the Securities and Exchange Commission on March 13, 2015.
Nature of Business
Viad’s reportable segments consist of Marketing & Events U.S., Marketing & Events International (collectively, “Marketing & Events Group”) and the Travel & Recreation Group.
Marketing & Events Group
The Marketing & Events Group, comprised of Global Experience Specialists, Inc. and affiliates (“GES”), is a global full-service provider for live events that helps clients gain more awareness, more engagement and a greater return at their events. The Marketing & Events Group offers a complete range of services, from design and production of immersive environments and brand-based experiences, to material handling, rigging, electrical and other on-site services for clients, including show organizers, corporate brand marketers and retail shopping centers. In addition, the Marketing & Events Group offers clients a full suite of online tools and technologies that help them more easily manage the complexities of their events. Show organizers include for-profit and not-for-profit show owners as well as show management companies. 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. Viad’s retail shopping center customers include major developers, owners and management companies of shopping malls and leisure centers.
In 2014, the Company acquired: Blitz Communications Group Limited and its affiliates (collectively, “Blitz”) in September, onPeak LLC and Travel Planners, Inc. in October, with Travel Planners, Inc. merging into onPeak LLC (collectively, “onPeak”) in January 2015, and N200 Limited and its affiliates (collectively, “N200”) in November. For additional information on the Company’s 2014 acquisitions, refer to Note 3, Acquisition of Businesses.
Travel & Recreation Group
The Travel & Recreation Group consists of Brewster Inc. (“Brewster”), Glacier Park, Inc. (“Glacier Park”) and Alaskan Park Properties, Inc. (“Alaska Denali Travel”).
Brewster provides tourism products and experiential services in the Canadian Rockies in Alberta and in other parts of Western Canada. Brewster’s operations include the Banff Gondola, Columbia Icefield Glacier Adventure, Glacier Skywalk, Banff Lake Cruise, motorcoach services, charter and sightseeing services, inbound package tour operations and hotel operations.
Glacier Park, an 80 percent owned subsidiary of Viad, owns and operates seven lodges, with accommodation offerings varying from hikers’ cabins to hotel suites, including St. Mary Lodge, a full-service resort located outside the east entrance to Glacier National Park in St. Mary, Montana; Glacier Park Lodge, a historic lodge in East Glacier, Montana; Grouse Mountain Lodge, a full-season lodge offering golf, skiing, hiking and other seasonal recreational activities, located near Glacier National Park in Whitefish, Montana; the Prince of Wales Hotel in Waterton Lakes National Park, Alberta, Canada, which is situated on land for which the Company has a 42-year ground lease with the Canadian government running through January 31, 2052; the West Glacier Motel & Cabins in West Glacier, Montana; and Motel Lake McDonald and the Apgar Village Lodge, which are located inside Glacier National Park. Glacier Park also operates the food and beverage services with respect to those properties and the retail shops located near Glacier National Park. For additional information on Glacier Park’s concession operations within Glacier National Park, refer to Note 20, Discontinued Operations.
In July 2014, the Company acquired the West Glacier Motel & Cabins, the Apgar Village Lodge and related land, food and beverage services and retail operations (collectively, the “West Glacier Properties”). For additional information, refer to Note 3, Acquisition of Businesses.
Alaska Denali Travel operates the Denali Backcountry Lodge and Denali Cabins. In addition to lodging, Alaska Denali Travel also provides food and beverage operations and package tour and transportation services in and around Denali National Park and Preserve.
Impact of Recent Accounting Pronouncements
In May 2014, the FASB issued ASU No. 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. The Company may adopt the requirements of ASU No. 2014-09 using either of two acceptable methods: (1) retrospective adoption to each prior period presented with the option to elect certain practical expedients; or (2) adoption with the cumulative effect recognized at the date of initial application and providing certain disclosures. In July 2015, the FASB approved a one-year deferral of the effective date of the new standard, making it effective for our annual and interim reporting periods beginning January 1, 2018. The Company is currently evaluating the potential impact of the adoption of this new guidance on its financial position or results of operations, including the method of adoption to be used.
In April 2015, the FASB issued ASU No. 2015-03, Interest - Imputation of Interest Simplifying the Presentation of Debt Issuance Costs. The amendments in ASU No. 2015-03 require that debt issuance costs related to a recognized debt liability be presented in the balance sheet as a direct deduction from the carrying amount of that debt liability. ASU No. 2015-03 is effective for fiscal years beginning after December 15, 2015. Early adoption is permitted. The adoption of this guidance is not expected to have a significant effect on our consolidated financial statements or financial covenants.
In July 2015, the FASB issued ASU No. 2015-11, Inventory (topic 330) - Simplifying the Measurement of Inventory. The amendments in ASU No. 2015-11 apply to inventory measures using first-in, first-out (FIFO) or average cost and will require entities to measure inventory at the lower of cost or net realizable value. Net realizable value is the estimated selling price in the normal course of business, minus the cost of completion, disposal and transportation. Replacement cost and net realizable value less a normal profit margin will no longer be considered. ASU No. 2015-11 is effective for fiscal years beginning after December 15, 2016. The adoption of this guidance is not expected to have a significant effect on our consolidated financial statements.
Share-Based Compensation
Share-Based Compensation
Share-Based Compensation
The following table summarizes share-based compensation expense:
 
Three Months Ended 
 June 30,
 
Six Months Ended 
 June 30,
(in thousands)
2015
 
2014
 
2015
 
2014
Restricted stock
$
506

 
$
759

 
$
1,100

 
$
1,413

Performance unit incentive plan (“PUP”)
376

 
326

 
988

 
95

Restricted stock units
(7
)
 
27

 
18

 
(5
)
Share-based compensation before income tax benefit
875

 
1,112

 
2,106

 
1,503

Income tax benefit
(325
)
 
(417
)
 
(792
)
 
(569
)
Share-based compensation, net of income tax benefit
$
550

 
$
695

 
$
1,314

 
$
934


For the three and six months ended June 30, 2015, Viad recorded share-based compensation expense of approximately $56,000 and $0.1 million, respectively, through restructuring expense.
On January 24, 2014, Viad announced that its Board of Directors declared a special cash dividend of $1.50 per share, or $30.5 million in the aggregate, which was paid on February 14, 2014. In accordance with the mandatory provisions of the 2007 Viad Corp Omnibus Incentive Plan (the “2007 Plan”) and the 1997 Viad Corp Omnibus Incentive Plan, the Human Resources Committee of Viad’s Board of Directors approved equitable adjustments to the outstanding long-term incentive awards of stock options and PUP awards issued pursuant to those plans in order to prevent the special dividend from diluting the rights of participants under those plans. The equitable adjustment to the outstanding stock options reduced the exercise price and increased the number of shares of common stock underlying such options. The equitable adjustment to the PUP awards reflects the effect of the special dividend, but will be paid only if certain performance goals are met at the end of the three-year performance period.
The following table summarizes the activity of the outstanding share-based compensation awards:
 
Restricted Stock
 
PUP Awards
 
Restricted Stock Units
 
Shares
 
Weighted-Average
Grant Date
Fair Value
 
Units
 
Weighted-Average
Grant Date
Fair Value
 
Units
 
Weighted-Average
Grant Date
Fair Value
Balance, December 31, 2014
328,602

 
$
23.30

 
267,120

 
$
23.51

 
25,370

 
$
23.17

Granted
80,500

 
27.33

 
91,100

 
27.31

 
4,800

 
27.35

Vested
(104,740
)
 
20.50

 
(103,555
)
 
20.60

 
(11,123
)
 
20.61

Forfeited
(24,130
)
 
24.37

 
(22,300
)
 
24.92

 

 

Balance, June 30, 2015
280,232

 
$
25.42

 
232,365

 
$
26.16

 
19,047

 
$
25.72


As of June 30, 2015, the unamortized cost of all outstanding restricted stock awards was $3.7 million, which Viad expects to recognize in the consolidated financial statements over a weighted-average period of approximately 1.7 years. During the six months ended June 30, 2015 and 2014, the Company repurchased 34,184 shares for $0.9 million and 44,806 shares for $1.0 million, respectively, related to tax withholding requirements on vested share-based awards. As of June 30, 2015, there were 962,825 total shares available for future grant in accordance with the provisions of the 2007 Plan.
As of June 30, 2015 and December 31, 2014, Viad had liabilities recorded of $1.5 million and $3.5 million, respectively, related to PUP awards. In March 2015, the PUP units granted in 2012 vested and cash payouts totaling $2.4 million were distributed. In March 2014, the PUP units granted in 2011 vested and cash payouts totaling $2.9 million were distributed.
As of June 30, 2015 and December 31, 2014, Viad had aggregate liabilities recorded of $0.3 million and $0.5 million, respectively, related to restricted stock unit liability awards. In February 2015, portions of the 2010, 2011 and 2012 restricted stock unit awards vested and cash payouts totaling $0.3 million were distributed. Similarly, in February 2014 portions of the 2009, 2010, and 2011 restricted stock unit awards vested and cash payouts of $0.2 million were distributed.
The following table summarizes stock option activity:
 
Shares
 
Weighted-
Average
Exercise Price
 
Options
Exercisable
Options outstanding at December 31, 2014
247,590

 
$
17.82

 
247,590

Exercised
(47,029
)
 
$
16.62

 
 
Forfeited or expired
(129,741
)
 
$
18.91

 
 
Options outstanding at June 30, 2015
70,820

 
$
16.62

 
70,820


As of June 30, 2015, there were no unrecognized costs related to non-vested stock option awards.
Acquisition of Businesses
Acquisition of Businesses
Acquisition of Businesses
2014 Acquisitions
West Glacier Properties
In July 2014, the Company acquired the West Glacier Properties. The purchase price was $16.5 million in cash with a working capital adjustment of $0.3 million, subject to certain adjustments. The working capital adjustment relates to the true- up of certain current assets and liabilities. As of June 30, 2015, there have been no changes in the fair values of the assets acquired and liabilities assumed as of the acquisition date compared to December 31, 2014. The results of operations of the West Glacier Properties have been included in Viad’s condensed consolidated financial statements from the date of acquisition.
Blitz
In September 2014, the Company acquired Blitz, which has offices in the United Kingdom and is a leading audio-visual staging and creative services provider for the live events industry in the United Kingdom and continental Europe. The purchase price was £15 million (approximately $24.4 million) in cash, subject to certain adjustments.

The following table summarizes the updated 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 acquisition. During the three months ended March 31, 2015, the Company made certain purchase accounting measurement period adjustments based on refinements to assumptions used in the preliminary valuation of approximately $0.1 million to property and equipment, net, $16,000 from intangible assets, $0.2 million to accrued lease obligations, $41,000 from deferred taxes and $0.2 million from goodwill. These adjustments did not have a significant impact on the Company’s condensed consolidated statements of operations, balance sheet, or cash flows for all periods presented, and therefore, were not retrospectively adjusted in the 2014 financial statements. Other than the line items mentioned previously, the balances in the table below as of June 30, 2015 remain unchanged from the balances reflected in the Consolidated Balance Sheets in the Company’s Annual Report on Form 10-K for the year ended December 31, 2014. The purchase price allocation remains open and may be adjusted as a result of the finalization of our purchase price allocation procedures related to certain tax amounts.
(in thousands)
 
 
 
 
Purchase price
 
 
 
$
24,416

Cash acquired
 
 
 
(190
)
Purchase price, net of cash acquired
 
 
 
24,226

 
 
 
 

Fair value of net assets acquired:
 
 
 
 
Accounts receivable, net
 
$
264

 
 
Inventory
 
433

 
 
Prepaid expenses
 
410

 
 
Property and equipment, net
 
5,951

 
 
Intangible assets
 
8,692

 
 
Total assets acquired
 
15,750

 
 
Accounts payable
 
1,232

 
 
Accrued liabilities
 
2,246

 
 
Customer deposits
 
199

 
 
Deferred tax liability
 
282

 
 
Revolving credit facility
 
488

 
 
Accrued dilapidations
 
417

 
 
Total liabilities acquired
 
4,864

 
 
Total fair value of net assets acquired
 
 
 
10,886

Excess purchase price over fair value of net assets acquired (“goodwill”)
 
 
 
$
13,340


The goodwill is included in the Marketing & Events International segment and the primary factor that contributed to a purchase price resulting in the recognition of goodwill relates to future growth opportunities when combined with our other businesses. The goodwill is deductible for tax purposes over a period of 15 years. 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.
Identified intangible assets acquired in the Blitz acquisition totaled $8.7 million and consist of customer relationships, non-compete agreements and a trade name. The weighted-average amortization period related to the intangible assets is approximately 6.9 years. The results of operations of Blitz have been included in Viad’s condensed consolidated financial statements from the date of acquisition.

onPeak LLC
In October 2014, the Company acquired onPeak LLC for a purchase price of $43.0 million in cash, subject to certain adjustments. Of the initial purchase price, $4.1 million was deposited at closing into escrow to secure post-closing purchase price adjustments, resolution of certain tax matters and other indemnity claims. onPeak LLC provides event accommodations services in North America to the live events industry.

The following table summarizes the updated 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 acquisition. During the three months ended March 31, 2015, the Company made certain purchase accounting measurement period adjustments based on refinements to assumptions used in the preliminary valuation of approximately $0.2 million from intangible assets, $38,000 from deferred taxes and $0.2 million to goodwill. These adjustments did not have a significant impact on the Company’s condensed consolidated statements of operations, balance sheet, or cash flows for all periods presented, and therefore, were not retrospectively adjusted in the 2014 financial statements. Other than the line items mentioned previously, as of June 30, 2015, the balances in the table below remain unchanged from the balances reflected in the Consolidated Balance Sheets in the Company’s Annual Report on Form 10-K for the year ended December 31, 2014. The purchase price allocation remains open and may be adjusted as a result of the finalization of our purchase price allocation procedures related to certain tax amounts.
(in thousands)
 
 
 
 
Purchase price paid as:
 
 
 
 
Cash
 
 
 
$
42,950

Cash acquired
 
 
 
(4,064
)
Purchase price, net of cash acquired
 
 
 
38,886

 
 
 
 
 
Fair value of net assets acquired:
 
 
 
 
Accounts receivable, net
 
$
4,008

 
 
Prepaid expenses
 
640

 
 
Property and equipment, net
 
2,450

 
 
Other non-current assets
 
309

 
 
Intangible assets
 
14,100

 
 
Total assets acquired
 
21,507

 
 
Accounts payable
 
738

 
 
Accrued liabilities
 
3,341

 
 
Customer deposits
 
4,225

 
 
Deferred tax liability
 
1,576

 
 
Other liabilities
 
309

 
 
Total liabilities acquired
 
10,189

 
 
Total fair value of net assets acquired
 
 
 
11,318

Excess purchase price over fair value of net assets acquired (“goodwill”)
 
 
 
$
27,568


The goodwill is included in the Marketing & Events U.S. segment and the primary factor that contributed to a purchase price resulting in the recognition of goodwill relates to future growth opportunities when combined with our other businesses. Goodwill of $9.3 million is expected to be deductible for tax purposes over a period of 15 years. 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.
Identified intangible assets acquired in the onPeak LLC acquisition totaled $14.1 million and consist primarily of customer relationships and trade name. The weighted-average amortization period related to the definite lived intangible assets is 9.9 years. The results of operations of onPeak LLC have been included in Viad’s condensed consolidated financial statements from the date of acquisition.
Travel Planners, Inc.
In October 2014, the Company acquired Travel Planners, Inc. for a purchase price of $33.7 million in cash less a working capital adjustment of $0.3 million, subject to certain adjustments. Of the purchase price, $8.8 million was deposited at closing into escrow to secure post-closing purchase price adjustments, resolution of certain tax matters and other indemnity claims. An additional amount of $0.9 million is payable to Travel Planners, Inc. as a result of an election made by the Company to treat the purchase as an asset acquisition for tax purposes. Travel Planners, Inc. provides event accommodations services in North America to the live events industry. Travel Planners, Inc. was merged into onPeak LLC in January 2015.

The following table summarizes the updated 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 acquisition. During the six months ended June 30, 2015, the Company made certain purchase accounting measurement period adjustments based on refinements to assumptions used in the preliminary valuation of $0.6 million from intangible assets, $0.4 million from additional purchase price payable upon tax election and $0.1 million from other accrued liabilities. These adjustments did not have a significant impact on the Company’s condensed consolidated statements of operations, balance sheet, or cash flows for all periods presented, and therefore, were not retrospectively adjusted in the 2014 financial statements. Other than the line items mentioned previously, the balances in the table below as of June 30, 2015 remain unchanged from the balances reflected in the Consolidated Balance Sheets in the Company’s Annual Report on Form 10-K for the year ended December 31, 2014. The purchase price allocation remains open and may be adjusted as a result of the finalization of our purchase price allocation procedures related to certain tax amounts.
(in thousands)
 
 
 
 
Purchase price paid as:
 
 
 
 
Cash
 
 
 
$
33,674

Additional purchase price payable for tax election
 
 
 
896

Working capital adjustment
 
 
 
(279
)
Cash acquired
 
 
 
(4,204
)
Purchase price, net of cash acquired
 
 
 
30,087

 
 
 
 
 
Fair value of net assets acquired:
 
 
 
 
Accounts receivable, net
 
$
1,450

 
 
Prepaid expenses
 
120

 
 
Property and equipment, net
 
93

 
 
Intangible assets
 
14,400

 
 
Total assets acquired
 
16,063

 
 
Accounts payable
 
488

 
 
Accrued liabilities
 
1,557

 
 
Customer deposits
 
4,525

 
 
Total liabilities acquired
 
6,570

 
 
Total fair value of net assets acquired
 
 
 
9,493

Excess purchase price over fair value of net assets acquired (“goodwill”)
 
 
 
$
20,594


The goodwill is included in the Marketing & Events U.S. segment and the primary factor that contributed to a purchase price resulting in the recognition of goodwill relates to future growth opportunities when combined with our other businesses. The goodwill is deductible for tax purposes over a period of 15 years. 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.
Identified intangible assets acquired in the Travel Planners, Inc. acquisition totaled $14.4 million and consist primarily of customer relationships, favorable lease contracts and trade name. The weighted-average amortization period related to the definite lived intangible assets is 9.8 years. The results of operations of Travel Planners, Inc. have been included in Viad’s condensed consolidated financial statements from the date of acquisition.
N200
In November 2014, the Company acquired N200 Limited and affiliates (collectively, “N200”) for €9.7 million (approximately $12.1 million) in cash, subject to certain adjustments, plus an earnout payment (the “Earnout”) of up to €1.0 million. The amount of the Earnout is based on N200’s achievement of established financial targets for the twelve-month period ending June 30, 2015. Such contingent payment, if any, will be determined during the third quarter of 2015. N200, which has offices in the United Kingdom and the Netherlands, is a leading event registration and data intelligence services provider for the live events industry in the United Kingdom and the Netherlands.

The following table summarizes the updated 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 acquisition. During the six months ended June 30, 2015, the Company made certain purchase accounting measurement period adjustments based on refinements to assumptions used in the preliminary valuation of $0.1 million to contingent consideration, $0.5 million to working capital payable, $15,000 from accounts receivable, net, $0.1 million to intangible assets, $0.1 million to accrued liabilities, $20,000 to deferred taxes and $0.3 million to goodwill. These adjustments did not have a significant impact on the Company’s condensed consolidated statements of operations, balance sheet, or cash flows for all periods presented, and therefore, were not retrospectively adjusted in the 2014 financial statements. Other than the line items mentioned previously, the balances in the table below as of June 30, 2015 remain unchanged from the balances reflected in the Consolidated Balance Sheets in the Company’s Annual Report on Form 10-K for the year ended December 31, 2014. The purchase price allocation remains open and may be adjusted as a result of the finalization of our purchase price allocation procedures related to certain tax amounts.
(in thousands)
 
 
 
 
Purchase price paid as:
 
 
 
 
Cash
 
 
 
$
12,068

Working capital adjustment
 
 
 
458

Contingent consideration
 
 
 
1,145

Cash acquired
 
 
 
(943
)
Purchase price, net of cash acquired
 
 
 
12,728

 
 
 
 
 
Fair value of net assets acquired:
 
 
 
 
Accounts receivable, net
 
$
1,732

 
 
Inventory
 
46

 
 
Prepaid expenses
 
115

 
 
Property and equipment, net
 
1,280

 
 
Intangible assets
 
3,682

 
 
Total assets acquired
 
6,855

 
 
Accounts payable
 
421

 
 
Accrued liabilities
 
1,057

 
 
Customer deposits
 
569

 
 
Deferred tax liability
 
911

 
 
Other liabilities
 
106

 
 
Total liabilities acquired
 
3,064

 
 
Total fair value of net assets acquired
 
 
 
3,791

Excess purchase price over fair value of net assets acquired (“goodwill”)
 
 
 
$
8,937


The goodwill is included in the Marketing & Events International segment and the primary factor that contributed to a purchase price resulting in the recognition of goodwill relates to future growth opportunities when combined with our other businesses. The goodwill is deductible for tax purposes over a period of 15 years. 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.
Identified intangible assets acquired in the N200 acquisition totaled $3.7 million and consist primarily of customer relationships. The weighted-average amortization period related to the definite lived intangible assets is 7.4 years. The results of operations of N200 have been included in Viad’s condensed consolidated financial statements from the date of acquisition.
Supplementary pro forma financial information

The following table summarizes the unaudited pro forma results of operations attributable to Viad as of June 30, 2014, assuming that the acquisitions above had each been completed on January 1, 2013:
 
 
Three Months Ended
 
Six Months
Ended
(in thousands, except per share data)
 
June 30, 2014
Revenue
 
$
275,748

 
$
576,599

Depreciation and amortization
 
$
9,666

 
$
19,024

Income from continuing operations
 
$
10,517

 
$
19,932

Net income attributable to Viad
 
$
9,251

 
$
31,548

Diluted net income per share
 
$
0.46

 
$
1.56

Basic net income per share
 
$
0.47

 
$
1.58

Inventories
Inventories
Inventories
The components of inventories consisted of the following as of the respective periods:
(in thousands)
June 30,
2015
 
December 31,
2014
Raw materials
$
17,383

 
$
16,749

Work in process
13,122

 
15,652

Inventories
$
30,505

 
$
32,401

Other Current Assets
Other Current Assets
Other Current Assets
Other current assets consisted of the following as of the respective periods:
(in thousands)
June 30,
2015
 
December 31,
2014
Prepaid software maintenance
$
4,173

 
$
1,934

Income tax receivable
3,182

 
1,869

Prepaid vendor payments
2,596

 
2,689

Prepaid rent
1,300

 
186

Prepaid taxes
1,213

 
1,416

Prepaid insurance
852

 
2,170

Prepaid other
4,344

 
4,427

Other
1,891

 
2,749

Other current assets
$
19,551

 
$
17,440

Property and Equipment, Net
Property and Equipment, Net
Property and Equipment, Net
Property and equipment consisted of the following as of the respective periods:
(in thousands)
June 30,
2015
 
December 31,
2014
Land and land interests
$
29,722

 
$
30,360

Buildings and leasehold improvements
135,225

 
138,104

Equipment and other
314,716

 
319,435

Gross property and equipment
479,663

 
487,899

Less: accumulated depreciation
(287,654
)
 
(288,328
)
Property and equipment, net
$
192,009

 
$
199,571


Depreciation expense for the three months ended June 30, 2015 and 2014 was $7.4 million and $6.9 million, respectively. Depreciation expense for the six months ended June 30, 2015 and 2014 was $14.1 million and $13.4 million, respectively.
Other Investments and Assets
Other Investments and Assets
Other Investments and Assets
Other investments and assets consisted of the following as of the respective periods:
(in thousands)
June 30,
2015
 
December 31,
2014
Cash surrender value of life insurance
$
20,939

 
$
20,866

Self-insured liability receivable
7,728

 
7,728

Workers’ compensation insurance security deposits
4,250

 
4,250

Other mutual funds
2,371

 
2,536

Other
5,521

 
5,294

Other investments and assets
$
40,809

 
$
40,674

Other Current Liabilities
Other Current Liabilities
Other Current Liabilities
Other current liabilities consisted of the following as of the respective periods:
(in thousands)
June 30,
2015
 
December 31,
2014
Continuing operations:
 
 
 
Self-insured liability accrual
$
6,567

 
$
6,297

Accrued employee benefit costs
4,109

 
3,215

Accrued foreign income taxes
3,375

 
2,370

Accrued sales and use taxes
2,745

 
3,624

Accrued dividends
2,099

 
2,107

Current portion of pension liability
1,729

 
1,641

Deferred rent
1,689

 
783

Accrued professional fees
1,078

 
1,228

Accrued restructuring
956

 
1,154

Accrued rebates
928

 
1,600

Other
9,389

 
2,837

Total continuing operations
34,664

 
26,856

Discontinued operations:
 
 
 
Environmental remediation liabilities
272

 
350

Self-insured liability accrual
156

 
173

Other
434

 
408

Total discontinued operations
862

 
931

Other current liabilities
$
35,526

 
$
27,787

Goodwill and Other Intangible Assets
Goodwill and Other Intangible Assets
Goodwill and Other Intangible Assets
The changes in the carrying amount of goodwill for the six months ended June 30, 2015 were as follows:
(in thousands)
Marketing &
Events U.S.
 
Marketing &
Events
International
 
Travel &
Recreation
Group
 
Total
Balance at December 31, 2014
$
110,618

 
$
42,221

 
$
41,358

 
$
194,197

Purchase price allocation adjustments
230

 
211

 

 
441

Foreign currency translation adjustments

 
(1,524
)
 
(3,079
)
 
(4,603
)
Balance at June 30, 2015
$
110,848

 
$
40,908

 
$
38,279

 
$
190,035



The original purchase price allocations were based on information available at the respective acquisition dates. During the six months ended June 30, 2015, we recorded measurement period adjustments to the original purchase price allocation for Blitz, onPeak LLC, Travel Planners, Inc. and N200, which increased goodwill by $0.4 million. The amount was not considered significant and therefore prior periods have not been retrospectively adjusted. For additional information, refer to Note 3, Acquisition of Businesses.
A summary of other intangible assets is presented below:
 
June 30,
2015
 
December 31,
2014
(in thousands)
Gross Carrying
Value
 
Accumulated
Amortization
 
Gross Carrying
Value
 
Accumulated
Amortization
Amortized intangible assets:
 
 
 
 
 
 
 
Customer contracts and relationships
$
38,943

 
$
(5,188
)
 
$
41,624

 
$
(2,961
)
Other
4,614

 
(1,455
)
 
4,576

 
(732
)
Total amortized intangible assets
43,557

 
(6,643
)
 
46,200

 
(3,693
)
Unamortized intangible assets:
 
 
 
 
 
 
 
Business licenses
460

 

 
460

 

Other intangible assets
$
44,017

 
$
(6,643
)
 
$
46,660

 
$
(3,693
)

The original purchase price allocations were based on information available at the respective acquisition dates. During the six months ended June 30, 2015, we recorded measurement period adjustments to the original purchase price allocation for Blitz, onPeak LLC, Travel Planners, Inc. and N200, which reduced other intangible assets by $0.7 million. The amount was not considered significant and therefore prior periods have not been retrospectively adjusted. For additional information, refer to Note 3, Acquisition of Businesses.
Intangible asset amortization expense for the three months ended June 30, 2015 and 2014 was $1.8 million and $0.3 million, respectively. Intangible asset amortization expense for the six months ended June 30, 2015 and 2014 was $3.8 million and $0.3 million, respectively. Estimated amortization expense related to amortized intangible assets for future years is expected to be as follows:
(in thousands)
 
Remainder of 2015
$
3,629

2016
$
6,444

2017
$
5,605

2018
$
4,613

2019
$
4,226

Thereafter
$
12,397

Other Deferred Items Liabilities
Other Deferred Items and Liabilities
Other Deferred Items and Liabilities
Other deferred items and liabilities consisted of the following as of the respective periods:
(in thousands)
June 30,
2015
 
December 31,
2014
Continuing operations:
 
 
 
Self-insured liability accrual
$
12,931

 
$
13,525

Self-insured excess liability
7,728

 
7,728

Accrued compensation
6,930

 
6,824

Deferred rent income
3,188

 
2,787

Foreign deferred tax liability
2,094

 
2,135

Accrued restructuring
460

 
555

Other
3,331

 
5,117

Total continuing operations
36,662

 
38,671

Discontinued operations:
 
 
 
Environmental remediation liabilities
4,365

 
4,395

Self-insured liability accrual
4,234

 
4,327

Accrued income taxes
997

 
1,119

Other
1,134

 
1,250

Total discontinued operations
10,730

 
11,091

Other deferred items and liabilities
$
47,392

 
$
49,762

Debt and Capital Lease Obligations
Debt and Capital Lease Obligations
Debt and Capital Lease Obligations
Long-term debt was as follows:
(in thousands)
June 30,
2015
 
December 31,
2014
Revolving Credit Facility and Term Loan, 2.3% and 2.4% weighted-average interest rate at June 30, 2015 and December 31, 2014, respectively, due through 2019
$
131,874

 
$
139,500

Capital lease obligations, 6.0% weighted-average interest at both June 30, 2015 and December 31, 2014, due through 2018
1,390

 
1,520

Total debt
133,264

 
141,020

Current portion
(29,532
)
 
(27,856
)
Long-term debt and capital lease obligations
$
103,732

 
$
113,164



Effective December 2014, Viad entered into a $300 million Amended and Restated Credit Agreement (the “Credit Agreement”). The Credit Agreement amends and replaced in its entirety the Company’s $180 million revolving credit facility under the Amended and Restated Credit Agreement dated as of May 18, 2011. 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”). Loans under the Credit Agreement have a maturity date of December 22, 2019, and proceeds from the loans made under the Credit Agreement were used to refinance certain outstanding debt of the Company and will be used for the Company’s general corporate purposes in the ordinary course of its business. Under the Credit Agreement, the Revolving Credit Facility and/or the Term Loan may be increased up to an additional $100 million under certain circumstances. If such circumstances are met, the Company may obtain the additional borrowings under the Revolving Credit Facility, a Term Loan, or a combination of the two facilities. 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.

Viad’s lenders have a first perfected security interest in all of the personal property of Viad, GES and GES Event Intelligence Services, Inc., including 65 percent of the capital stock of top-tier foreign subsidiaries. Financial covenants include a fixed charge coverage ratio of not less than 1.75 to 1.00, with a step-up to 2.00 to 1.00 for the fiscal quarter ending June 30, 2016. Viad must maintain a leverage ratio of not greater than 3.00 to 1.00, with a step-down to 2.75 to 1.00 for the fiscal quarter ending March 31, 2016 and a step-down to 2.50 to 1.00 for the fiscal quarter ending March 31, 2017. As of June 30, 2015 and December 31, 2014, the fixed charge coverage ratio was 2.48 to 1.00 and 2.61 to 1.00, respectively, and the leverage ratio was 1.62 to 1.00 and 1.73 to 1.00, respectively. The terms of the Credit Agreement allow Viad to pay dividends or purchase the Company’s common stock up to $20 million in the aggregate in any calendar year, with additional dividends, share repurchases or distributions of stock permitted if the Company’s leverage ratio is less than or equal to 2.00 to 1.00, and the Liquidity Amount (defined as cash in the U.S. and Canada plus available revolver borrowings on a pro forma basis) is not less than $100 million, and no default or unmatured default, as defined in the Credit Agreement, exists. Significant other covenants include limitations on investments, additional indebtedness, sales/leases of assets, acquisitions, consolidations or mergers and liens on property. As of June 30, 2015, Viad was in compliance with all covenants.
As of June 30, 2015, Viad’s total debt was $133.3 million, consisting of outstanding borrowings under the Term Loan and Revolving Credit Facility of $121.9 million and $10.0 million, respectively, and capital lease obligations of $1.4 million. As of December 31, 2014, Viad’s total debt was $141.0 million, consisting of outstanding borrowings under the Term Loan and Revolving Credit Facility of $125.0 million and $14.5 million, respectively, and capital lease obligations of $1.5 million. As of June 30, 2015, Viad had $162.4 million of capacity remaining under its Credit Facility reflecting outstanding letters of credit of $2.6 million and the outstanding balance under the Revolving Credit Facility of $10.0 million, respectively.
Borrowings under the Revolving Credit Facility (of which GES and GES Event Intelligence Services, Inc. are guarantors) are indexed to the prime rate or the London Interbank Offered Rate, plus appropriate spreads tied to Viad’s leverage ratio. Commitment fees and letters of credit fees are also tied to Viad’s leverage ratio. The fees on the unused portion of the Credit Facility are currently 0.40 percent annually.
As of June 30, 2015, Viad had certain obligations under guarantees to third parties on behalf of its subsidiaries. These guarantees are not subject to liability recognition in the condensed consolidated financial statements and relate to leased facilities entered into by the Company’s subsidiary operations. The Company 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 Viad would be required to make under all guarantees existing as of June 30, 2015 would be $3.6 million. These guarantees relate to leased facilities and expire through October 2017. There are no recourse provisions that would enable Viad to recover from third parties any payments made under the guarantees. Furthermore, there are no collateral or similar arrangements whereby Viad could recover payments.
The estimated fair value of total debt was $105.1 million and $123.0 million as of June 30, 2015 and December 31, 2014, respectively. The fair value of debt was estimated by discounting the future cash flows using rates currently available for debt of similar terms and maturity.
Fair Value Measurements
Fair Value Measurements
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.
Viad measures its money market mutual funds and certain other mutual fund investments 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)
June 30,
2015
 
Quoted Prices in
Active
Markets
(Level 1)
 
Significant
Other
Observable
Inputs
(Level 2)
 
Significant
Unobserved
Inputs
(Level 3)
Assets:
 
 
 
 
 
 
 
Money market funds
$
7,320

 
$
7,320

 
$

 
$

Other mutual funds
2,371

 
2,371

 

 

Total assets at fair value
$
9,691

 
$
9,691

 
$

 
$

Liabilities:
 
 
 
 
 
 
 
Earnout contingent consideration liability
(1,114
)
 

 

 
(1,114
)
Total liabilities at fair value on a recurring basis
$
(1,114
)
 
$

 
$

 
$
(1,114
)
 
 
 
Fair Value Measurements at Reporting Date Using
(in thousands)
December 31,
2014
 
Quoted Prices
in Active
Markets
(Level 1)
 
Significant
Other
Observable
Inputs
(Level 2)
 
Significant
Unobserved
Inputs
(Level 3)
Assets:
 
 
 
 
 
 
 
Money market funds
$
8,518

 
$
8,518

 
$

 
$

Other mutual funds
2,536

 
2,536

 

 

Total assets at fair value
$
11,054

 
$
11,054

 
$

 
$

Liabilities:


 
 
 
 
 
 
Earnout contingent consideration liability
(1,210
)
 

 

 
(1,210
)
Total liabilities at fair value on a recurring basis
$
(1,210
)
 
$

 
$

 
$
(1,210
)

As of June 30, 2015 and December 31, 2014, Viad had investments in money market mutual funds of $7.3 million and $8.5 million, respectively, which are included in the consolidated balance sheets under the caption “Cash and cash equivalents.” These investments are classified as available-for-sale and were recorded at fair value. There have been no realized or unrealized gains or losses related to these investments and the Company has not experienced any redemption restrictions with respect to any of the money market mutual funds.
As of June 30, 2015 and December 31, 2014, Viad had investments in other mutual funds of $2.4 million and $2.5 million, respectively, which are classified in the consolidated balance sheets under the caption “Other investments and assets.” These investments were classified as available-for-sale and were recorded at fair value. As of June 30, 2015 and December 31, 2014, there were unrealized gains of $1.0 million ($0.6 million after-tax) and $0.8 million ($0.5 million after-tax), respectively, which were included in the consolidated balance sheets under the caption “Accumulated other comprehensive income (loss).”
The fair value measurement of the earnout contingent consideration obligation relates to the acquisition of N200 in November 2014, and is included in accrued liabilities in the consolidated balance sheets. The fair value measurement is based upon significant inputs not observable in the market. Changes in the value of the obligation are recorded as income or expense in our consolidated statements of income. The contingent payment, if any, will be determined during the third quarter of 2015. During the six month period ended June 30, 2015, the estimated contingent payment increased $0.1 million, due primarily to an increase in the estimated attainment of earnout objectives.
The carrying values of cash and cash equivalents, receivables and accounts payable approximate fair value due to the short-term maturities of these instruments. The estimated fair value of debt obligations is disclosed in Note 11, Debt and Capital Lease Obligations.
Stockholders' Equity
Stockholders' Equity
Stockholders' Equity
The following represents a reconciliation of the carrying amounts of stockholders’ equity attributable to Viad and the noncontrolling interest for the six months ended June 30, 2015 and 2014:
(in thousands)
 
Total Viad
Stockholders’
Equity
 
Noncontrolling
Interest
 
Total
Stockholders’
Equity
Balance at December 31, 2014
 
$
335,387

 
$
12,315

 
$
347,702

Net income (loss)
 
20,333

 
(173
)
 
20,160

Dividends on common stock
 
(4,008
)
 

 
(4,008
)
Common stock purchased for treasury
 
(5,969
)
 

 
(5,969
)
Employee benefit plans
 
4,790

 

 
4,790

Unrealized foreign currency translation adjustment
 
(11,626
)
 

 
(11,626
)
Tax benefits from share-based compensation
 
232

 

 
232

Other changes to accumulated other comprehensive income
 
298

 

 
298

Other
 
(1
)
 
(1
)
 
(2
)
Balance at June 30, 2015
 
$
339,436

 
$
12,141

 
$
351,577

(in thousands)
 
Total Viad
Stockholders’
Equity
 
Noncontrolling
Interest
 
Total
Stockholders’
Equity
Balance at December 31, 2013
 
$
347,441

 
$
9,102

 
$
356,543

Net income
 
28,624

 
2,404

 
31,028

Dividends on common stock
 
(34,534
)
 

 
(34,534
)
Common stock purchased for treasury
 
(11,610
)
 

 
(11,610
)
Employee benefit plans
 
4,004

 

 
4,004

Unrealized foreign currency translation adjustment
 
(151
)
 

 
(151
)
Unrealized gain on investments
 
50

 

 
50

ESOP allocation adjustment
 
44

 

 
44

Other
 
36

 

 
36

Balance at June 30, 2014
 
$
333,904

 
$
11,506

 
$
345,410


Changes in accumulated other comprehensive income (“AOCI”) by component were 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
Balance at December 31, 2014
 
$
471

 
$
12,415

 
$
(13,280
)
 
$
(394
)
Other comprehensive income (loss) before reclassifications
 
168

 
(11,626
)
 

 
(11,458
)
Amounts reclassified from AOCI, net of tax
 
(34
)
 

 
(31
)
 
(65
)
Net other comprehensive income (loss)
 
134

 
(11,626
)
 
(31
)
 
(11,523
)
Balance at June 30, 2015
 
$
605

 
$
789

 
$
(13,311
)
 
$
(11,917
)

The following table presents information about reclassification adjustments out of AOCI for the six months ended June 30:
 
 
 
 
Affected Line Item in the
Statement Where Net
Income is Presented
(in thousands)
 
2015
 
2014
 
Unrealized gains on investments
 
$
54

 
$
40

 
Interest income
Tax effect
 
(20
)
 
(15
)
 
Income taxes
 
 
$
34

 
$
25

 
 
 
 
 
 
 
 
 
Recognized net actuarial loss(1)
 
$
(345
)
 
$
(413
)
 
 
Amortization of prior service credit(1)
 
275

 
353

 
 
Tax effect
 
101

 
23

 
Income taxes
 
 
$
31

 
$
(37
)
 
 
(1) Amount included in pension expense. Refer to Note 16, Pension and Postretirement Benefits.
Income (Loss) Per Share
Income (Loss) Per Share
Income Per Share
The following are the components of basic and diluted income per share:
 
Three Months Ended 
 June 30,
 
Six Months Ended 
 June 30,
(in thousands, except per share data)
2015
 
2014
 
2015
 
2014
Net income attributable to Viad (diluted)
$
22,389

 
$
6,742

 
$
20,333

 
$
28,624

Less: Allocation to non-vested shares
(321
)
 
(124
)
 
(304
)
 
(546
)
Net income allocated to Viad common stockholders (basic)
$
22,068

 
$
6,618

 
$
20,029

 
$
28,078

Basic weighted-average outstanding common shares
19,778

 
19,869

 
19,757

 
19,909

Additional dilutive shares related to share-based compensation
140

 
280

 
176

 
353

Diluted weighted-average outstanding shares
19,918

 
20,149

 
19,933

 
20,262

Income per share:
 
 
 
 
 
 
 
Basic income attributable to Viad common stockholders
$
1.12

 
$
0.33

 
$
1.01

 
$
1.41

Diluted income attributable to Viad common stockholders(1)
$
1.12

 
$
0.33

 
$
1.01

 
$
1.41

(1) Diluted income per share amount cannot exceed basic income per share.
As of the three and six months ended June 30, 2015, there were 140,000 and 176,000, respectively, share-based compensation awards considered dilutive and included in the computation of diluted income per share. As of the three and six months ended June 30, 2014, there were 280,000 and 353,000, respectively, share-based compensation awards considered dilutive and included in the computation of diluted income per share. Options to purchase 7,386 and 29,000 shares of common stock were outstanding during the six months ended June 30, 2015 and 2014, respectively, but were not included in the computation of dilutive shares outstanding because the effect would be anti-dilutive.
Income Taxes
Income Taxes
Income Taxes
The effective tax rates for the three months ended June 30, 2015 and 2014 were 31.8 percent and 18.6 percent, respectively. The effective tax rates for the six months ended June 30, 2015 and 2014 were 26.0 percent and 17.0 percent, respectively.
The income tax provisions were computed based on the Company’s estimated effective tax rate and forecasted income by jurisdiction expected to be applicable for the full fiscal year, including the impact of any unusual or infrequent items. The effective tax rate for the six months ended June 30, 2015 was less than the federal statutory rate of 35.0 percent primarily due to the recording of a non-cash tax benefit relating to certain foreign intangible deferred tax assets that were recorded during the six months ended June 30, 2015. The effective tax rate for the six months ended June 30, 2014 was lower than the federal statutory rate principally due to foreign income which is taxed at lower rates, and other deferred tax adjustments.
Viad is required to estimate and record provisions for income taxes in each of the jurisdictions in which the Company operates. Accordingly, the Company must estimate its actual current income tax liability, and assess temporary differences arising from the treatment of items for tax purposes, as compared to the treatment for accounting purposes. These differences result in deferred tax assets and liabilities which are included in Viad’s consolidated balance sheets. The Company must assess the likelihood that deferred tax assets will be recovered from future taxable income and to the extent that recovery is not likely, a valuation allowance must be established. The Company uses significant judgment in forming a conclusion regarding the recoverability of its deferred tax assets and evaluates the available positive and negative evidence to determine whether it is more likely than not that its deferred tax assets will be realized in the future. 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.
The Company considered all available positive and negative evidence regarding the future recoverability of its deferred tax assets, including the Company’s recent operating history, taxpaying history and future reversals of deferred tax liabilities. The Company also evaluated its ability to utilize its foreign tax credits, given its recent utilization history and projected future domestic income. The foreign tax credits are subject to a 10-year carryforward period and begin to expire in 2020. As of December 31, 2014, $12.7 million of the $21.8 million in tax credit carryforwards were related to foreign tax credits. Based on the Company’s evaluation of all positive and negative evidence, it was determined to be more likely than not that the foreign tax credit carryforwards would be utilized before their expiration. Therefore, a valuation allowance against the foreign tax credit was not required. The positive evidence relied upon in making this assessment included the Company’s positive cumulative income position, the projected future utilization of foreign tax credit carryforwards, the history of utilizing all deferred tax assets including net operating losses, and future forecasts of domestic income.

As noted above, Viad uses considerable judgment in forming a conclusion regarding the recoverability of its deferred tax assets. As a result, there are inherent uncertainties regarding the ultimate realization of these assets, which is primarily dependent upon Viad’s ability to generate sufficient taxable income in future periods. In future periods, it is reasonably possible that the relative weight of positive and negative evidence regarding the recoverability of Viad’s deferred tax assets may change, which could result in a material increase or decrease in the Company’s valuation allowance. If such a change in the valuation allowance were to occur, it would result in a change to income tax expense in the period the assessment was made.
Viad had liabilities, including interest and penalties, associated with uncertain tax positions for continuing operations of $1.2 million as of June 30, 2015 and $1.3 million as of December 31, 2014. In addition, as of June 30, 2015 and December 31, 2014, Viad had liabilities, including interest and penalties, for uncertain tax positions relating to discontinued operations of $1.0 million and $1.1 million, respectively. Future tax resolutions or settlements that may occur related to these uncertain tax positions would be recorded through either continuing or discontinued operations (net of applicable federal tax benefit). The total liability associated with uncertain tax positions as of June 30, 2015 and December 31, 2014 was $2.2 million and $2.4 million, respectively, which was classified as both current and non-current liabilities. The Company does not expect a material amount of uncertain tax positions to be resolved or settled within the next twelve months.
Pension and Postretirement Benefits
Pension and Postretirement Benefits
Pension and Postretirement Benefits
The net periodic benefit cost of Viad’s pension and postretirement plans for the three months ended June 30, included the following components:
 
 
Domestic Plans
 
 
 
 
 
 
Pension Plans
 
Postretirement Benefit Plans
 
Foreign Pension Plans
(in thousands)
 
2015
 
2014
 
2015
 
2014
 
2015
 
2014
Service cost
 
$
26

 
$
22

 
$
44

 
$
60

 
$
131

 
$
105

Interest cost
 
275

 
266

 
139

 
201

 
131

 
160

Expected return on plan assets
 
(81
)
 
(117
)
 

 

 
(152
)
 
(162
)
Amortization of prior service credit
 

 

 
(185
)
 
(148
)
 

 

Recognized net actuarial loss
 
143

 
85

 
134

 
108

 
2

 
2

Net periodic benefit cost
 
$
363

 
$
256

 
$
132

 
$
221

 
$
112

 
$
105


The net periodic benefit cost of Viad’s pension and postretirement plans for the six months ended June 30, included the following components:
 
 
Domestic Plans
 
 
 
 
 
 
Pension Plans
 
Postretirement Benefit Plans
 
Foreign Pension Plans
(in thousands)
 
2015
 
2014
 
2015
 
2014
 
2015
 
2014
Service cost
 
$
51

 
$
45

 
$
87

 
$
94

 
$
259

 
$
209

Interest cost
 
526

 
546

 
316

 
377

 
260

 
320

Expected return on plan assets
 
(192
)
 
(220
)
 

 

 
(301
)
 
(323
)
Amortization of prior service credit
 

 

 
(276
)
 
(296
)
 

 

Recognized net actuarial loss
 
268

 
204

 
273

 
209

 
4

 
5

Net periodic benefit cost
 
$
653

 
$
575

 
$
400

 
$
384

 
$
222

 
$
211


Viad expects to contribute $0.8 million to its funded pension plans, $0.6 million to its unfunded pension plans and $1.1 million to its postretirement benefit plans in 2015. During the six months ended June 30, 2015, Viad contributed $0.3 million to its funded pension plans, $0.3 million to its unfunded pension plans and $0.7 million to its postretirement benefit plans.
Restructuring Charges
Restructuring Charges
Restructuring Charges
The Company executed certain restructuring actions designed to reduce the Company’s cost structure primarily within the Marketing & Events U.S. segment, and to a lesser extent in the Marketing & Events International segment. As a result, it has recorded restructuring charges related to the consolidation and downsizing of facilities. Additionally, the Company has recorded restructuring charges in connection with certain reorganization activities. These charges consist of severance and related benefits due to headcount reductions.
The table below represents a reconciliation of beginning and ending liability balances by major restructuring activity:
 
Marketing & Events
Group 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
643

 
98

 
544

 
1,285

Cash payments
(891
)
 
(235
)
 
(543
)
 
(1,669
)
Adjustment to liability

 

 
(144
)
 
(144
)
Balance at June 30, 2015
$
295

 
$
1,024

 
$
97

 
$
1,416


As of June 30, 2015, the liabilities related to severance and employee benefits are expected to be paid by the end of 2015. Additionally, the liability of $1.0 million related to future lease payments will be paid over the remaining lease terms for the Marketing & Events Group. Refer to Note 19, Segment Information, for information regarding restructuring charges (recoveries) by segment.
Litigation, Claims, Contingencies and Other
Litigation, Claims, Contingencies and Other
Litigation, Claims, Contingencies and Other
Viad and certain of its subsidiaries 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 Viad. Although the amount of liability as of June 30, 2015 with respect to these matters is not ascertainable, Viad believes that any resulting liability, after taking into consideration amounts already provided for and insurance coverage, will not have a material effect on Viad’s business, financial position or results of operations.
Viad is 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 Viad has or had operations. If the Company has failed to comply with these environmental laws and regulations, civil and criminal penalties could be imposed and Viad could become subject to regulatory enforcement actions in the form of injunctions and cease and desist orders. As is the case with many companies, Viad also faces exposure to actual or potential claims and lawsuits involving environmental matters relating to its past operations. Although it is a party to certain environmental disputes, Viad believes that any resulting liabilities, after taking into consideration amounts already provided for and insurance coverage, will not have a material effect on the Company’s financial position or results of operations. As of June 30, 2015, Viad had recorded environmental remediation liabilities of $4.6 million related to previously sold operations.
As of June 30, 2015, Viad had certain obligations under guarantees to third parties on behalf of its subsidiaries. These guarantees are not subject to liability recognition in the condensed consolidated financial statements and relate to leased facilities entered into by Viad’s subsidiary operations. The Company 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 Viad would be required to make under all guarantees existing as of June 30, 2015 would be $3.6 million. These guarantees relate to leased facilities expiring through October 2017. There are no recourse provisions that would enable Viad to recover from third parties any payments made under the guarantees. Furthermore, there are no collateral or similar arrangements whereby Viad could recover payments.
A significant portion of Viad’s employees are unionized and the Company is a party to approximately 100 collective-bargaining agreements, with approximately one-third requiring renegotiation each year. If the Company was 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 the Company’s businesses and results of operations. Viad believes that relations with its employees are satisfactory and that collective-bargaining agreements expiring in 2015 will be renegotiated in the ordinary course of business without having a material adverse effect on Viad’s operations. The Company entered into new 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. The Company is in informal discussions regarding those issues with all relevant parties and is working diligently to resolve those issues in a manner that will be reasonable and equitable to employees, customers and shareholders. Although the Company’s 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 the Marketing & Events Group.
Viad’s businesses contribute to various multi-employer pension plans based on obligations arising under collective-bargaining agreements covering its union-represented employees. Based upon the information available to Viad from plan administrators, management believes 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 Viad, 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 Viad to make payments to such plan for its proportionate share of the plan’s unfunded vested liabilities. As of June 30, 2015, the amount of additional funding, if any, that Viad would be required to make related to multi-employer pension plans is not ascertainable.
Viad is 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 the Company’s retention limit) related to Viad’s continuing operations was $19.5 million as of June 30, 2015. Of this total, $12.3 million related to workers’ compensation liabilities and the remaining $7.2 million related to general/auto liability claims. Viad has also retained and provided for certain insurance liabilities in conjunction with previously sold businesses totaling $4.4 million as of June 30, 2015, related to workers’ compensation liabilities. Provisions for losses for claims incurred, including estimated claims incurred but not yet reported, are made based on Viad’s historical experience, claims frequency and other factors. A change in the assumptions used could result in an adjustment to recorded liabilities. Viad has 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. Viad does not maintain a self-insured retention pool fund as claims are paid from current cash resources at the time of settlement. Viad’s net cash payments in connection with these insurance liabilities were $2.4 million for the six months ended June 30, 2015.
In addition, as of June 30, 2015, Viad had recorded insurance liabilities of $7.7 million related to continuing operations in excess of the self-insured levels for which Viad remains the primary obligor. Of this total, $4.6 million related to workers’ compensation liabilities and the remaining $3.1 million related to general/auto liability claims. The Company has recorded these amounts in other deferred items and liabilities in Viad’s Condensed Consolidated Balance Sheets with a corresponding receivable in other investments and assets.
Segment Information
Segment Information
Segment Information
Viad’s reportable segments consist of Marketing & Events U.S., Marketing & Events International (together the “Marketing & Events Group”) and the Travel & Recreation Group.
Viad measures profit and performance of its operations on the basis of segment operating income which excludes restructuring charges and recoveries 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. Disclosures regarding Viad’s reportable segments with reconciliations to consolidated totals are as follows:
 
Three Months Ended 
 June 30,
 
Six Months Ended 
 June 30,
(in thousands)
2015
 
2014
 
2015
 
2014
Revenue:
 
 
 
 
 
 
 
Marketing & Events Group:
 
 
 
 
 
 
 
U.S.
$
208,749

 
$
168,839

 
$
401,692

 
$
390,234

International
85,723

 
63,379

 
150,959

 
122,097

Intersegment eliminations
(7,903
)
 
(5,632
)
 
(9,154
)
 
(7,922
)
Total Marketing & Events Group
286,569

 
226,586

 
543,497

 
504,409

Travel & Recreation Group
30,466

 
29,805

 
37,934

 
37,623

Total revenue
$
317,035

 
$
256,391

 
$
581,431

 
$
542,032

Segment operating income:

 
 
 
 
 
 
Marketing & Events Group:
 
 
 
 
 
 
 
U.S.
$
18,974

 
$
5,124

 
$
21,611

 
$
20,975

International
11,109

 
3,896

 
12,156

 
6,215

Total Marketing & Events Group
30,083

 
9,020

 
33,767

 
27,190

Travel & Recreation Group
6,203

 
5,116

 
1,394

 
307

Segment operating income
36,286

 
14,136

 
35,161

 
27,497

Corporate activities
(1,983
)
 
(1,991
)
 
(4,793
)
 
(4,030
)
Operating income
34,303


12,145

 
30,368

 
23,467

Interest income
443

 
54

 
506

 
119

Interest expense
(1,103
)
 
(309
)
 
(2,254
)
 
(607
)
Restructuring (charges) recoveries:
 
 
 
 
 
 
 
Marketing & Events U.S.
(383
)
 
(244
)
 
(471
)
 
(206
)
Marketing & Events International
(133
)
 
(990
)
 
(271
)
 
(1,520
)
Travel & Recreation Group
(148
)
 
(135
)
 
(142
)
 
71

Corporate
(405
)
 
4

 
(401
)
 
79

Impairment charges:
 
 
 
 
 
 
 
Marketing & Events International

 
(884
)
 

 
(884
)
Income from continuing operations before income taxes
$
32,574

 
$
9,641

 
$
27,335

 
$
20,519

Discontinued Operations
Discontinued Operations
Discontinued Operations
For the three and six months ended June 30, 2015, Viad recorded income from discontinued operations of $78,000 and a loss of $70,000, respectively, due to liability reserve adjustments and legal fees related to previously sold operations.
For the three and six months ended June 30, 2014, Viad recorded a loss from discontinued operations of $1.2 million and a gain of $14.0 million, respectively, due to the expiration of the Glacier National Park concession contract and additional reserves related to certain liabilities associated with previously sold operations.
On December 31, 2013, Glacier Park’s concession contract with the Park Service to operate lodging, tour and transportation and other hospitality services within Glacier National Park expired. Upon completion of the contract, the Company received cash payments in January 2014 totaling $25.0 million resulting in a pre-tax gain of $21.5 million for the Company’s possessory interest. The gain after-tax on the possessory interest as of June 30, 2014 was $14.3 million with $2.7 million attributable to the noncontrolling interest. These amounts are included in income (loss) from discontinued operations and net income attributable to noncontrolling interest in Viad’s Condensed Consolidated Statements of Operations, respectively.
The following summarizes Glacier Park’s expired concession contract operating results, which are presented in income (loss) from discontinued operations, net of tax, in Viad’s Condensed Consolidated Statements of Operations:
 
 
Three Months Ended
 
Six Months
Ended
(in thousands)
 
June 30, 2014
Total revenue
 
$

 
$

Costs and expenses
 
(18
)
 
(86
)
Loss from discontinued operations, before income taxes
 
(18
)
 
(86
)
Income tax benefit
 
18

 
38

Loss from discontinued operations, net of tax
 

 
(48
)
Gain (loss) on sale of discontinued operations, net of tax
 
(964
)
 
14,322

Income (loss) from discontinued operations
 
(964
)
 
14,274

Income from discontinued operations attributable to noncontrolling interest
 

 
(2,668
)
Income (loss) from discontinued operations attributable to Viad
 
$
(964
)
 
$
11,606


The following is a reconciliation of net income attributable to the noncontrolling interest for the six months ended June 30:
(in thousands)
 
2015
 
2014
Loss from continuing operations
 
$
(173
)
 
$
(264
)
Income from discontinued operations
 

 
2,668

Net income (loss) attributable to noncontrolling interest
 
$
(173
)
 
$
2,404

Basis of Presentation and Principles of Consolidation (Policies)
The accompanying unaudited, condensed consolidated financial statements of Viad Corp (“Viad” or the “Company”) have been prepared in accordance with accounting principles generally accepted in the United States of America (“GAAP”) for interim financial information and with the instructions to Form 10-Q and Article 10 of Regulation S-X. Accordingly, they do not include all of the information and footnotes required for complete financial statements. The condensed consolidated financial statements of Viad include the accounts of Viad and all of its subsidiaries. All significant intercompany account balances and transactions between Viad and its subsidiaries have been eliminated in consolidation.
In the opinion of management, all adjustments (consisting of normal recurring accruals) considered necessary for a fair presentation have been included. Operating results for the six months ended June 30, 2015 are not necessarily indicative of the results that may be expected for the year ending December 31, 2015.
For further information, refer to the consolidated financial statements and related footnotes for the year ended December 31, 2014 included in the Company’s Form 10-K, filed with the Securities and Exchange Commission on March 13, 2015.
Nature of Business
Viad’s reportable segments consist of Marketing & Events U.S., Marketing & Events International (collectively, “Marketing & Events Group”) and the Travel & Recreation Group.
Marketing & Events Group
The Marketing & Events Group, comprised of Global Experience Specialists, Inc. and affiliates (“GES”), is a global full-service provider for live events that helps clients gain more awareness, more engagement and a greater return at their events. The Marketing & Events Group offers a complete range of services, from design and production of immersive environments and brand-based experiences, to material handling, rigging, electrical and other on-site services for clients, including show organizers, corporate brand marketers and retail shopping centers. In addition, the Marketing & Events Group offers clients a full suite of online tools and technologies that help them more easily manage the complexities of their events. Show organizers include for-profit and not-for-profit show owners as well as show management companies. 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. Viad’s retail shopping center customers include major developers, owners and management companies of shopping malls and leisure centers.
In 2014, the Company acquired: Blitz Communications Group Limited and its affiliates (collectively, “Blitz”) in September, onPeak LLC and Travel Planners, Inc. in October, with Travel Planners, Inc. merging into onPeak LLC (collectively, “onPeak”) in January 2015, and N200 Limited and its affiliates (collectively, “N200”) in November. For additional information on the Company’s 2014 acquisitions, refer to Note 3, Acquisition of Businesses.
Travel & Recreation Group
The Travel & Recreation Group consists of Brewster Inc. (“Brewster”), Glacier Park, Inc. (“Glacier Park”) and Alaskan Park Properties, Inc. (“Alaska Denali Travel”).
Brewster provides tourism products and experiential services in the Canadian Rockies in Alberta and in other parts of Western Canada. Brewster’s operations include the Banff Gondola, Columbia Icefield Glacier Adventure, Glacier Skywalk, Banff Lake Cruise, motorcoach services, charter and sightseeing services, inbound package tour operations and hotel operations.
Glacier Park, an 80 percent owned subsidiary of Viad, owns and operates seven lodges, with accommodation offerings varying from hikers’ cabins to hotel suites, including St. Mary Lodge, a full-service resort located outside the east entrance to Glacier National Park in St. Mary, Montana; Glacier Park Lodge, a historic lodge in East Glacier, Montana; Grouse Mountain Lodge, a full-season lodge offering golf, skiing, hiking and other seasonal recreational activities, located near Glacier National Park in Whitefish, Montana; the Prince of Wales Hotel in Waterton Lakes National Park, Alberta, Canada, which is situated on land for which the Company has a 42-year ground lease with the Canadian government running through January 31, 2052; the West Glacier Motel & Cabins in West Glacier, Montana; and Motel Lake McDonald and the Apgar Village Lodge, which are located inside Glacier National Park. Glacier Park also operates the food and beverage services with respect to those properties and the retail shops located near Glacier National Park. For additional information on Glacier Park’s concession operations within Glacier National Park, refer to Note 20, Discontinued Operations.
In July 2014, the Company acquired the West Glacier Motel & Cabins, the Apgar Village Lodge and related land, food and beverage services and retail operations (collectively, the “West Glacier Properties”). For additional information, refer to Note 3, Acquisition of Businesses.
Alaska Denali Travel operates the Denali Backcountry Lodge and Denali Cabins. In addition to lodging, Alaska Denali Travel also provides food and beverage operations and package tour and transportation services in and around Denali National Park and Preserve.
Share-Based Compensation (Tables)
The following table summarizes share-based compensation expense:
 
Three Months Ended 
 June 30,
 
Six Months Ended 
 June 30,
(in thousands)
2015
 
2014
 
2015
 
2014
Restricted stock
$
506

 
$
759

 
$
1,100

 
$
1,413

Performance unit incentive plan (“PUP”)
376

 
326

 
988

 
95

Restricted stock units
(7
)
 
27

 
18

 
(5
)
Share-based compensation before income tax benefit
875

 
1,112

 
2,106

 
1,503

Income tax benefit
(325
)
 
(417
)
 
(792
)
 
(569
)
Share-based compensation, net of income tax benefit
$
550

 
$
695

 
$
1,314

 
$
934

The following table summarizes the activity of the outstanding share-based compensation awards:
 
Restricted Stock
 
PUP Awards
 
Restricted Stock Units
 
Shares
 
Weighted-Average
Grant Date
Fair Value
 
Units
 
Weighted-Average
Grant Date
Fair Value
 
Units
 
Weighted-Average
Grant Date
Fair Value
Balance, December 31, 2014
328,602

 
$
23.30

 
267,120

 
$
23.51

 
25,370

 
$
23.17

Granted
80,500

 
27.33

 
91,100

 
27.31

 
4,800

 
27.35

Vested
(104,740
)
 
20.50

 
(103,555
)
 
20.60

 
(11,123
)
 
20.61

Forfeited
(24,130
)
 
24.37

 
(22,300
)
 
24.92

 

 

Balance, June 30, 2015
280,232

 
$
25.42

 
232,365

 
$
26.16

 
19,047

 
$
25.72

The following table summarizes stock option activity:
 
Shares
 
Weighted-
Average
Exercise Price
 
Options
Exercisable
Options outstanding at December 31, 2014
247,590

 
$
17.82

 
247,590

Exercised
(47,029
)
 
$
16.62

 
 
Forfeited or expired
(129,741
)
 
$
18.91

 
 
Options outstanding at June 30, 2015
70,820

 
$
16.62

 
70,820

Acquisition of Businesses (Tables)
The following table summarizes the updated 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 acquisition. During the three months ended March 31, 2015, the Company made certain purchase accounting measurement period adjustments based on refinements to assumptions used in the preliminary valuation of approximately $0.1 million to property and equipment, net, $16,000 from intangible assets, $0.2 million to accrued lease obligations, $41,000 from deferred taxes and $0.2 million from goodwill. These adjustments did not have a significant impact on the Company’s condensed consolidated statements of operations, balance sheet, or cash flows for all periods presented, and therefore, were not retrospectively adjusted in the 2014 financial statements. Other than the line items mentioned previously, the balances in the table below as of June 30, 2015 remain unchanged from the balances reflected in the Consolidated Balance Sheets in the Company’s Annual Report on Form 10-K for the year ended December 31, 2014. The purchase price allocation remains open and may be adjusted as a result of the finalization of our purchase price allocation procedures related to certain tax amounts.
(in thousands)
 
 
 
 
Purchase price
 
 
 
$
24,416

Cash acquired
 
 
 
(190
)
Purchase price, net of cash acquired
 
 
 
24,226

 
 
 
 

Fair value of net assets acquired:
 
 
 
 
Accounts receivable, net
 
$
264

 
 
Inventory
 
433

 
 
Prepaid expenses
 
410

 
 
Property and equipment, net
 
5,951

 
 
Intangible assets
 
8,692

 
 
Total assets acquired
 
15,750

 
 
Accounts payable
 
1,232

 
 
Accrued liabilities
 
2,246

 
 
Customer deposits
 
199

 
 
Deferred tax liability
 
282

 
 
Revolving credit facility
 
488

 
 
Accrued dilapidations
 
417

 
 
Total liabilities acquired
 
4,864

 
 
Total fair value of net assets acquired
 
 
 
10,886

Excess purchase price over fair value of net assets acquired (“goodwill”)
 
 
 
$
13,340

The following table summarizes the updated 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 acquisition. During the three months ended March 31, 2015, the Company made certain purchase accounting measurement period adjustments based on refinements to assumptions used in the preliminary valuation of approximately $0.2 million from intangible assets, $38,000 from deferred taxes and $0.2 million to goodwill. These adjustments did not have a significant impact on the Company’s condensed consolidated statements of operations, balance sheet, or cash flows for all periods presented, and therefore, were not retrospectively adjusted in the 2014 financial statements. Other than the line items mentioned previously, as of June 30, 2015, the balances in the table below remain unchanged from the balances reflected in the Consolidated Balance Sheets in the Company’s Annual Report on Form 10-K for the year ended December 31, 2014. The purchase price allocation remains open and may be adjusted as a result of the finalization of our purchase price allocation procedures related to certain tax amounts.
(in thousands)
 
 
 
 
Purchase price paid as:
 
 
 
 
Cash
 
 
 
$
42,950

Cash acquired
 
 
 
(4,064
)
Purchase price, net of cash acquired
 
 
 
38,886

 
 
 
 
 
Fair value of net assets acquired:
 
 
 
 
Accounts receivable, net
 
$
4,008

 
 
Prepaid expenses
 
640

 
 
Property and equipment, net
 
2,450

 
 
Other non-current assets
 
309

 
 
Intangible assets
 
14,100

 
 
Total assets acquired
 
21,507

 
 
Accounts payable
 
738

 
 
Accrued liabilities
 
3,341

 
 
Customer deposits
 
4,225

 
 
Deferred tax liability
 
1,576

 
 
Other liabilities
 
309

 
 
Total liabilities acquired
 
10,189

 
 
Total fair value of net assets acquired
 
 
 
11,318

Excess purchase price over fair value of net assets acquired (“goodwill”)
 
 
 
$
27,568

The following table summarizes the updated 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 acquisition. During the six months ended June 30, 2015, the Company made certain purchase accounting measurement period adjustments based on refinements to assumptions used in the preliminary valuation of $0.1 million to contingent consideration, $0.5 million to working capital payable, $15,000 from accounts receivable, net, $0.1 million to intangible assets, $0.1 million to accrued liabilities, $20,000 to deferred taxes and $0.3 million to goodwill. These adjustments did not have a significant impact on the Company’s condensed consolidated statements of operations, balance sheet, or cash flows for all periods presented, and therefore, were not retrospectively adjusted in the 2014 financial statements. Other than the line items mentioned previously, the balances in the table below as of June 30, 2015 remain unchanged from the balances reflected in the Consolidated Balance Sheets in the Company’s Annual Report on Form 10-K for the year ended December 31, 2014. The purchase price allocation remains open and may be adjusted as a result of the finalization of our purchase price allocation procedures related to certain tax amounts.
(in thousands)
 
 
 
 
Purchase price paid as:
 
 
 
 
Cash
 
 
 
$
12,068

Working capital adjustment
 
 
 
458

Contingent consideration
 
 
 
1,145

Cash acquired
 
 
 
(943
)
Purchase price, net of cash acquired
 
 
 
12,728

 
 
 
 
 
Fair value of net assets acquired:
 
 
 
 
Accounts receivable, net
 
$
1,732

 
 
Inventory
 
46

 
 
Prepaid expenses
 
115

 
 
Property and equipment, net
 
1,280

 
 
Intangible assets
 
3,682

 
 
Total assets acquired
 
6,855

 
 
Accounts payable
 
421

 
 
Accrued liabilities
 
1,057

 
 
Customer deposits
 
569

 
 
Deferred tax liability
 
911

 
 
Other liabilities
 
106

 
 
Total liabilities acquired
 
3,064

 
 
Total fair value of net assets acquired
 
 
 
3,791

Excess purchase price over fair value of net assets acquired (“goodwill”)
 
 
 
$
8,937

The following table summarizes the updated 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 acquisition. During the six months ended June 30, 2015, the Company made certain purchase accounting measurement period adjustments based on refinements to assumptions used in the preliminary valuation of $0.6 million from intangible assets, $0.4 million from additional purchase price payable upon tax election and $0.1 million from other accrued liabilities. These adjustments did not have a significant impact on the Company’s condensed consolidated statements of operations, balance sheet, or cash flows for all periods presented, and therefore, were not retrospectively adjusted in the 2014 financial statements. Other than the line items mentioned previously, the balances in the table below as of June 30, 2015 remain unchanged from the balances reflected in the Consolidated Balance Sheets in the Company’s Annual Report on Form 10-K for the year ended December 31, 2014. The purchase price allocation remains open and may be adjusted as a result of the finalization of our purchase price allocation procedures related to certain tax amounts.
(in thousands)
 
 
 
 
Purchase price paid as:
 
 
 
 
Cash
 
 
 
$
33,674

Additional purchase price payable for tax election
 
 
 
896

Working capital adjustment
 
 
 
(279
)
Cash acquired
 
 
 
(4,204
)
Purchase price, net of cash acquired
 
 
 
30,087

 
 
 
 
 
Fair value of net assets acquired:
 
 
 
 
Accounts receivable, net
 
$
1,450

 
 
Prepaid expenses
 
120

 
 
Property and equipment, net
 
93

 
 
Intangible assets
 
14,400

 
 
Total assets acquired
 
16,063

 
 
Accounts payable
 
488

 
 
Accrued liabilities
 
1,557

 
 
Customer deposits
 
4,525

 
 
Total liabilities acquired
 
6,570

 
 
Total fair value of net assets acquired
 
 
 
9,493

Excess purchase price over fair value of net assets acquired (“goodwill”)
 
 
 
$
20,594

The following table summarizes the unaudited pro forma results of operations attributable to Viad as of June 30, 2014, assuming that the acquisitions above had each been completed on January 1, 2013:
 
 
Three Months Ended
 
Six Months
Ended
(in thousands, except per share data)
 
June 30, 2014
Revenue
 
$
275,748

 
$
576,599

Depreciation and amortization
 
$
9,666

 
$
19,024

Income from continuing operations
 
$
10,517

 
$
19,932

Net income attributable to Viad
 
$
9,251

 
$
31,548

Diluted net income per share
 
$
0.46

 
$
1.56

Basic net income per share
 
$
0.47

 
$
1.58

Inventories (Tables)
Components of Inventories
The components of inventories consisted of the following as of the respective periods:
(in thousands)
June 30,
2015
 
December 31,
2014
Raw materials
$
17,383

 
$
16,749

Work in process
13,122

 
15,652

Inventories
$
30,505

 
$
32,401

Other Current Assets (Tables)
Schedule of Other Current Assets
Other current assets consisted of the following as of the respective periods:
(in thousands)
June 30,
2015
 
December 31,
2014
Prepaid software maintenance
$
4,173

 
$
1,934

Income tax receivable
3,182

 
1,869

Prepaid vendor payments
2,596

 
2,689

Prepaid rent
1,300

 
186

Prepaid taxes
1,213

 
1,416

Prepaid insurance
852

 
2,170

Prepaid other
4,344

 
4,427

Other
1,891

 
2,749

Other current assets
$
19,551

 
$
17,440

Property and Equipment, Net (Tables)
Schedule of Property and Equipment
Property and equipment consisted of the following as of the respective periods:
(in thousands)
June 30,
2015
 
December 31,
2014
Land and land interests
$
29,722

 
$
30,360

Buildings and leasehold improvements
135,225

 
138,104

Equipment and other
314,716

 
319,435

Gross property and equipment
479,663

 
487,899

Less: accumulated depreciation
(287,654
)
 
(288,328
)
Property and equipment, net
$
192,009

 
$
199,571

Other Investments and Assets (Tables)
Summary of other investments and assets
Other investments and assets consisted of the following as of the respective periods:
(in thousands)
June 30,
2015
 
December 31,
2014
Cash surrender value of life insurance
$
20,939

 
$
20,866

Self-insured liability receivable
7,728

 
7,728

Workers’ compensation insurance security deposits
4,250

 
4,250

Other mutual funds
2,371

 
2,536

Other
5,521

 
5,294

Other investments and assets
$
40,809

 
$
40,674

Other Current Liabilities (Tables)
Other Current Liabilities
Other current liabilities consisted of the following as of the respective periods:
(in thousands)
June 30,
2015
 
December 31,
2014
Continuing operations:
 
 
 
Self-insured liability accrual
$
6,567

 
$
6,297

Accrued employee benefit costs
4,109

 
3,215

Accrued foreign income taxes
3,375

 
2,370

Accrued sales and use taxes
2,745

 
3,624

Accrued dividends
2,099

 
2,107

Current portion of pension liability
1,729

 
1,641

Deferred rent
1,689

 
783

Accrued professional fees
1,078

 
1,228

Accrued restructuring
956

 
1,154

Accrued rebates
928

 
1,600

Other
9,389

 
2,837

Total continuing operations
34,664

 
26,856

Discontinued operations:
 
 
 
Environmental remediation liabilities
272

 
350

Self-insured liability accrual
156

 
173

Other
434

 
408

Total discontinued operations
862

 
931

Other current liabilities
$
35,526

 
$
27,787

Goodwill and Other Intangible Assets (Tables)
The changes in the carrying amount of goodwill for the six months ended June 30, 2015 were as follows:
(in thousands)
Marketing &
Events U.S.
 
Marketing &
Events
International
 
Travel &
Recreation
Group
 
Total
Balance at December 31, 2014
$
110,618

 
$
42,221

 
$
41,358

 
$
194,197

Purchase price allocation adjustments
230

 
211

 

 
441

Foreign currency translation adjustments

 
(1,524
)
 
(3,079
)
 
(4,603
)
Balance at June 30, 2015
$
110,848

 
$
40,908

 
$
38,279

 
$
190,035

A summary of other intangible assets is presented below:
 
June 30,
2015
 
December 31,
2014
(in thousands)
Gross Carrying
Value
 
Accumulated
Amortization
 
Gross Carrying
Value
 
Accumulated
Amortization
Amortized intangible assets:
 
 
 
 
 
 
 
Customer contracts and relationships
$
38,943

 
$
(5,188
)
 
$
41,624

 
$
(2,961
)
Other
4,614

 
(1,455
)
 
4,576

 
(732
)
Total amortized intangible assets
43,557

 
(6,643
)
 
46,200

 
(3,693
)
Unamortized intangible assets:
 
 
 
 
 
 
 
Business licenses
460

 

 
460

 

Other intangible assets
$
44,017

 
$
(6,643
)
 
$
46,660

 
$
(3,693
)
Estimated amortization expense related to amortized intangible assets for future years is expected to be as follows:
(in thousands)
 
Remainder of 2015
$
3,629

2016
$
6,444

2017
$
5,605

2018
$
4,613

2019
$
4,226

Thereafter
$
12,397

Other Deferred Items Liabilities (Tables)
Other deferred items and liabilities
Other deferred items and liabilities consisted of the following as of the respective periods:
(in thousands)
June 30,
2015
 
December 31,
2014
Continuing operations:
 
 
 
Self-insured liability accrual
$
12,931

 
$
13,525

Self-insured excess liability
7,728

 
7,728

Accrued compensation
6,930

 
6,824

Deferred rent income
3,188

 
2,787

Foreign deferred tax liability
2,094

 
2,135

Accrued restructuring
460

 
555

Other
3,331

 
5,117

Total continuing operations
36,662

 
38,671

Discontinued operations:
 
 
 
Environmental remediation liabilities
4,365

 
4,395

Self-insured liability accrual
4,234

 
4,327

Accrued income taxes
997

 
1,119

Other
1,134

 
1,250

Total discontinued operations
10,730

 
11,091

Other deferred items and liabilities
$
47,392

 
$
49,762

Debt and Capital Lease Obligations (Tables)
Schedule of Debt
Long-term debt was as follows:
(in thousands)
June 30,
2015
 
December 31,
2014
Revolving Credit Facility and Term Loan, 2.3% and 2.4% weighted-average interest rate at June 30, 2015 and December 31, 2014, respectively, due through 2019
$
131,874

 
$
139,500

Capital lease obligations, 6.0% weighted-average interest at both June 30, 2015 and December 31, 2014, due through 2018
1,390

 
1,520

Total debt
133,264

 
141,020

Current portion
(29,532
)
 
(27,856
)
Long-term debt and capital lease obligations
$
103,732

 
$
113,164

Fair Value Measurements (Tables)
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)
June 30,
2015
 
Quoted Prices in
Active
Markets
(Level 1)
 
Significant
Other
Observable
Inputs
(Level 2)
 
Significant
Unobserved
Inputs
(Level 3)
Assets:
 
 
 
 
 
 
 
Money market funds
$
7,320

 
$
7,320

 
$

 
$

Other mutual funds
2,371

 
2,371

 

 

Total assets at fair value
$
9,691

 
$
9,691

 
$

 
$

Liabilities:
 
 
 
 
 
 
 
Earnout contingent consideration liability
(1,114
)
 

 

 
(1,114
)
Total liabilities at fair value on a recurring basis
$
(1,114
)
 
$

 
$

 
$
(1,114
)
 
 
 
Fair Value Measurements at Reporting Date Using
(in thousands)
December 31,
2014
 
Quoted Prices
in Active
Markets
(Level 1)
 
Significant
Other
Observable
Inputs
(Level 2)
 
Significant
Unobserved
Inputs
(Level 3)
Assets:
 
 
 
 
 
 
 
Money market funds
$
8,518

 
$
8,518

 
$

 
$

Other mutual funds
2,536

 
2,536

 

 

Total assets at fair value
$
11,054

 
$
11,054

 
$

 
$

Liabilities:


 
 
 
 
 
 
Earnout contingent consideration liability
(1,210
)
 

 

 
(1,210
)
Total liabilities at fair value on a recurring basis
$
(1,210
)
 
$

 
$

 
$
(1,210
)
Stockholders' Equity (Tables)
The following represents a reconciliation of the carrying amounts of stockholders’ equity attributable to Viad and the noncontrolling interest for the six months ended June 30, 2015 and 2014:
(in thousands)
 
Total Viad
Stockholders’
Equity
 
Noncontrolling
Interest
 
Total
Stockholders’
Equity
Balance at December 31, 2014
 
$
335,387

 
$
12,315

 
$
347,702

Net income (loss)
 
20,333

 
(173
)
 
20,160

Dividends on common stock
 
(4,008
)
 

 
(4,008
)
Common stock purchased for treasury
 
(5,969
)
 

 
(5,969
)
Employee benefit plans
 
4,790

 

 
4,790

Unrealized foreign currency translation adjustment
 
(11,626
)
 

 
(11,626
)
Tax benefits from share-based compensation
 
232

 

 
232

Other changes to accumulated other comprehensive income
 
298

 

 
298

Other
 
(1
)
 
(1
)
 
(2
)
Balance at June 30, 2015
 
$
339,436

 
$
12,141

 
$
351,577

(in thousands)
 
Total Viad
Stockholders’
Equity
 
Noncontrolling
Interest
 
Total
Stockholders’
Equity
Balance at December 31, 2013
 
$
347,441

 
$
9,102

 
$
356,543

Net income
 
28,624

 
2,404

 
31,028

Dividends on common stock
 
(34,534
)
 

 
(34,534
)
Common stock purchased for treasury
 
(11,610
)
 

 
(11,610
)
Employee benefit plans
 
4,004

 

 
4,004

Unrealized foreign currency translation adjustment
 
(151
)
 

 
(151
)
Unrealized gain on investments
 
50

 

 
50

ESOP allocation adjustment
 
44

 

 
44

Other
 
36

 

 
36

Balance at June 30, 2014
 
$
333,904

 
$
11,506

 
$
345,410

Changes in accumulated other comprehensive income (“AOCI”) by component were 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
Balance at December 31, 2014
 
$
471

 
$
12,415

 
$
(13,280
)
 
$
(394
)
Other comprehensive income (loss) before reclassifications
 
168

 
(11,626
)
 

 
(11,458
)
Amounts reclassified from AOCI, net of tax
 
(34
)
 

 
(31
)
 
(65
)
Net other comprehensive income (loss)
 
134

 
(11,626
)
 
(31
)
 
(11,523
)
Balance at June 30, 2015
 
$
605

 
$
789

 
$
(13,311
)
 
$
(11,917
)
The following table presents information about reclassification adjustments out of AOCI for the six months ended June 30:
 
 
 
 
Affected Line Item in the
Statement Where Net
Income is Presented
(in thousands)
 
2015
 
2014
 
Unrealized gains on investments
 
$
54

 
$
40

 
Interest income
Tax effect
 
(20
)
 
(15
)
 
Income taxes
 
 
$
34

 
$
25

 
 
 
 
 
 
 
 
 
Recognized net actuarial loss(1)
 
$
(345
)
 
$
(413
)
 
 
Amortization of prior service credit(1)
 
275

 
353

 
 
Tax effect
 
101

 
23

 
Income taxes
 
 
$
31

 
$
(37
)
 
 
(1) Amount included in pension expense. Refer to Note 16, Pension and Postretirement Benefits.
Income (Loss) Per Share (Tables)
Reconciliation of basic and diluted income per share
The following are the components of basic and diluted income per share:
 
Three Months Ended 
 June 30,
 
Six Months Ended 
 June 30,
(in thousands, except per share data)
2015
 
2014
 
2015
 
2014
Net income attributable to Viad (diluted)
$
22,389

 
$
6,742

 
$
20,333

 
$
28,624

Less: Allocation to non-vested shares
(321
)
 
(124
)
 
(304
)
 
(546
)
Net income allocated to Viad common stockholders (basic)
$
22,068

 
$
6,618

 
$
20,029

 
$
28,078

Basic weighted-average outstanding common shares
19,778

 
19,869

 
19,757

 
19,909

Additional dilutive shares related to share-based compensation
140

 
280

 
176

 
353

Diluted weighted-average outstanding shares
19,918

 
20,149

 
19,933

 
20,262

Income per share:
 
 
 
 
 
 
 
Basic income attributable to Viad common stockholders
$
1.12

 
$
0.33

 
$
1.01

 
$
1.41

Diluted income attributable to Viad common stockholders(1)
$
1.12

 
$
0.33

 
$
1.01

 
$
1.41

(1) Diluted income per share amount cannot exceed basic income per share.
Pension and Postretirement Benefits (Tables)
Components of net periodic benefit cost and other amounts recognized in other comprehensive income of Viad's postretirement benefit plans
The net periodic benefit cost of Viad’s pension and postretirement plans for the three months ended June 30, included the following components:
 
 
Domestic Plans
 
 
 
 
 
 
Pension Plans
 
Postretirement Benefit Plans
 
Foreign Pension Plans
(in thousands)
 
2015
 
2014
 
2015
 
2014
 
2015
 
2014
Service cost
 
$
26

 
$
22

 
$
44

 
$
60

 
$
131

 
$
105

Interest cost
 
275

 
266

 
139

 
201

 
131

 
160

Expected return on plan assets
 
(81
)
 
(117
)
 

 

 
(152
)
 
(162
)
Amortization of prior service credit
 

 

 
(185
)
 
(148
)
 

 

Recognized net actuarial loss
 
143

 
85

 
134

 
108

 
2

 
2

Net periodic benefit cost
 
$
363

 
$
256

 
$
132

 
$
221

 
$
112

 
$
105


The net periodic benefit cost of Viad’s pension and postretirement plans for the six months ended June 30, included the following components:
 
 
Domestic Plans
 
 
 
 
 
 
Pension Plans
 
Postretirement Benefit Plans
 
Foreign Pension Plans
(in thousands)
 
2015
 
2014
 
2015
 
2014
 
2015
 
2014
Service cost
 
$
51

 
$
45

 
$
87

 
$
94

 
$
259

 
$
209

Interest cost
 
526

 
546

 
316

 
377

 
260

 
320

Expected return on plan assets
 
(192
)
 
(220
)
 

 

 
(301
)
 
(323
)
Amortization of prior service credit
 

 

 
(276
)
 
(296
)
 

 

Recognized net actuarial loss
 
268

 
204

 
273

 
209

 
4

 
5

Net periodic benefit cost
 
$
653

 
$
575

 
$
400

 
$
384

 
$
222

 
$
211

Restructuring Charges (Tables)
Reconciliation of beginning and ending liability balances by major restructuring activity
The table below represents a reconciliation of beginning and ending liability balances by major restructuring activity:
 
Marketing & Events
Group 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
643

 
98

 
544

 
1,285

Cash payments
(891
)
 
(235
)
 
(543
)
 
(1,669
)
Adjustment to liability

 

 
(144
)
 
(144
)
Balance at June 30, 2015
$
295

 
$
1,024

 
$
97

 
$
1,416

Segment Information (Tables)
Reconciliation of income statement items from reportable segments
Disclosures regarding Viad’s reportable segments with reconciliations to consolidated totals are as follows:
 
Three Months Ended 
 June 30,
 
Six Months Ended 
 June 30,
(in thousands)
2015
 
2014
 
2015
 
2014
Revenue:
 
 
 
 
 
 
 
Marketing & Events Group:
 
 
 
 
 
 
 
U.S.
$
208,749

 
$
168,839

 
$
401,692

 
$
390,234

International
85,723

 
63,379

 
150,959

 
122,097

Intersegment eliminations
(7,903
)
 
(5,632
)
 
(9,154
)
 
(7,922
)
Total Marketing & Events Group
286,569

 
226,586

 
543,497

 
504,409

Travel & Recreation Group
30,466

 
29,805

 
37,934

 
37,623

Total revenue
$
317,035

 
$
256,391

 
$
581,431

 
$
542,032

Segment operating income:

 
 
 
 
 
 
Marketing & Events Group:
 
 
 
 
 
 
 
U.S.
$
18,974

 
$
5,124

 
$
21,611

 
$
20,975

International
11,109

 
3,896

 
12,156

 
6,215

Total Marketing & Events Group
30,083

 
9,020

 
33,767

 
27,190

Travel & Recreation Group
6,203

 
5,116

 
1,394

 
307

Segment operating income
36,286

 
14,136

 
35,161

 
27,497

Corporate activities
(1,983
)
 
(1,991
)
 
(4,793
)
 
(4,030
)
Operating income
34,303


12,145

 
30,368

 
23,467

Interest income
443

 
54

 
506

 
119

Interest expense
(1,103
)
 
(309
)
 
(2,254
)
 
(607
)
Restructuring (charges) recoveries:
 
 
 
 
 
 
 
Marketing & Events U.S.
(383
)
 
(244
)
 
(471
)
 
(206
)
Marketing & Events International
(133
)
 
(990
)
 
(271
)
 
(1,520
)
Travel & Recreation Group
(148
)
 
(135
)
 
(142
)
 
71

Corporate
(405
)
 
4

 
(401
)
 
79

Impairment charges:
 
 
 
 
 
 
 
Marketing & Events International

 
(884
)
 

 
(884
)
Income from continuing operations before income taxes
$
32,574

 
$
9,641

 
$
27,335

 
$
20,519

Discontinued Operations (Tables)
The following summarizes Glacier Park’s expired concession contract operating results, which are presented in income (loss) from discontinued operations, net of tax, in Viad’s Condensed Consolidated Statements of Operations:
 
 
Three Months Ended
 
Six Months
Ended
(in thousands)
 
June 30, 2014
Total revenue
 
$

 
$

Costs and expenses
 
(18
)
 
(86
)
Loss from discontinued operations, before income taxes
 
(18
)
 
(86
)
Income tax benefit
 
18

 
38

Loss from discontinued operations, net of tax
 

 
(48
)
Gain (loss) on sale of discontinued operations, net of tax
 
(964
)
 
14,322

Income (loss) from discontinued operations
 
(964
)
 
14,274

Income from discontinued operations attributable to noncontrolling interest
 

 
(2,668
)
Income (loss) from discontinued operations attributable to Viad
 
$
(964
)
 
$
11,606

The following is a reconciliation of net income attributable to the noncontrolling interest for the six months ended June 30:
(in thousands)
 
2015
 
2014
Loss from continuing operations
 
$
(173
)
 
$
(264
)
Income from discontinued operations
 

 
2,668

Net income (loss) attributable to noncontrolling interest
 
$
(173
)
 
$
2,404

Basis of Presentation and Principles of Consolidation - Narrative (Details) (Glacier Park Inc)
6 Months Ended
Jun. 30, 2015
Lodges
Glacier Park Inc
 
Business Acquisition [Line Items]
 
Ownership percentage by parent
80.00% 
Number of lodges
Lease term
42 years 
Share-Based Compensation - Summary of Share-Based Compensation Expenses (Details) (USD $)
In Thousands, unless otherwise specified
3 Months Ended 6 Months Ended
Jun. 30, 2015
Jun. 30, 2014
Jun. 30, 2015
Jun. 30, 2014
Summary of share-based compensation expense
 
 
 
 
Share-based compensation before income tax benefit
$ 875 
$ 1,112 
$ 2,106 
$ 1,503 
Income tax benefit
(325)
(417)
(792)
(569)
Share-based compensation, net of income tax benefit
550 
695 
1,314 
934 
Restricted stock
 
 
 
 
Summary of share-based compensation expense
 
 
 
 
Share-based compensation before income tax benefit
506 
759 
1,100 
1,413 
Performance unit incentive plan (“PUP”)
 
 
 
 
Summary of share-based compensation expense
 
 
 
 
Share-based compensation before income tax benefit
376 
326 
988 
95 
Restricted stock units
 
 
 
 
Summary of share-based compensation expense
 
 
 
 
Share-based compensation before income tax benefit
$ (7)
$ 27 
$ 18 
$ (5)
Share-Based Compensation - Summary of Liability Based Award Activity (Details) (Liability Based Awards, USD $)
6 Months Ended
Jun. 30, 2015
Restricted Stock
 
Share-based Compensation Arrangement by Share-based Payment Award, Equity Instruments Other than Options, Nonvested, Number of Shares [Roll Forward]
 
Beginning Balance, Shares
328,602 
Granted, Shares
80,500 
Vested, Shares
(104,740)
Forfeited or Cancelled, Shares
(24,130)
Ending Balance, Shares
280,232 
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
$ 23.30 
Granted, Weighted-Average Grant Date Fair Value
$ 27.33 
Vested, Weighted-Average Grant Date Fair Value
$ 20.50 
Forfeited or Cancelled, Weighted-Average Grant Date Fair Value
$ 24.37 
Ending Balance, Weighted-Average Grant Date Fair Value
$ 25.42 
Performance unit incentive plan (“PUP”)
 
Share-based Compensation Arrangement by Share-based Payment Award, Equity Instruments Other than Options, Nonvested, Number of Shares [Roll Forward]
 
Beginning Balance, Shares
267,120 
Granted, Shares
91,100 
Vested, Shares
(103,555)
Forfeited or Cancelled, Shares
(22,300)
Ending Balance, Shares
232,365 
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
$ 23.51 
Granted, Weighted-Average Grant Date Fair Value
$ 27.31 
Vested, Weighted-Average Grant Date Fair Value
$ 20.60 
Forfeited or Cancelled, Weighted-Average Grant Date Fair Value
$ 24.92 
Ending Balance, Weighted-Average Grant Date Fair Value
$ 26.16 
Restricted Stock Units
 
Share-based Compensation Arrangement by Share-based Payment Award, Equity Instruments Other than Options, Nonvested, Number of Shares [Roll Forward]
 
Beginning Balance, Shares
25,370 
Granted, Shares
4,800 
Vested, Shares
(11,123)
Forfeited or Cancelled, Shares
Ending Balance, Shares
19,047 
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
$ 23.17 
Granted, Weighted-Average Grant Date Fair Value
$ 27.35 
Vested, Weighted-Average Grant Date Fair Value
$ 20.61 
Forfeited or Cancelled, Weighted-Average Grant Date Fair Value
$ 0.00 
Ending Balance, Weighted-Average Grant Date Fair Value
$ 25.72 
Share-Based Compensation - Summary of Stock Option Activity (Details) (USD $)
6 Months Ended
Jun. 30, 2015
Summary of stock option activity
 
Options outstanding, Beginning Balance, Shares
247,590 
Exercised, Shares
(47,029)
Forfeited or Expired, Shares
(129,741)
Options outstanding, Ending Balance, Shares
70,820 
Share-based Compensation Arrangement by Share-based Payment Award, Options, Outstanding, Weighted Average Exercise Price [Abstract]
 
Options outstanding, Beginning Balance, Weighted Average Exercise Price
$ 17.82 
Exercised, Weighted Average Exercise Price
$ 16.62 
Forfeited or Expired, Weighted Average Exercise Price
$ 18.91 
Options outstanding, Ending Balance, Weighted Average Exercise Price
$ 16.62 
Share-based Compensation Arrangement by Share-based Payment Award, Options, Additional Disclosures [Abstract]
 
Options outstanding, Beginning Balance, Options Exercisable
247,590 
Options outstanding, Ending Balance, Options Exercisable
70,820 
Share-Based Compensation - Narrative (Details) (USD $)
0 Months Ended 3 Months Ended 6 Months Ended 1 Months Ended 3 Months Ended 6 Months Ended 3 Months Ended 6 Months Ended 1 Months Ended 3 Months Ended 6 Months Ended
Jan. 24, 2014
Jun. 30, 2015
Jun. 30, 2014
Jun. 30, 2015
Jun. 30, 2014
Mar. 31, 2015
Performance unit incentive plan (“PUP”)
Mar. 31, 2014
Performance unit incentive plan (“PUP”)
Jun. 30, 2015
Performance unit incentive plan (“PUP”)
Jun. 30, 2014
Performance unit incentive plan (“PUP”)
Jun. 30, 2015
Performance unit incentive plan (“PUP”)
Jun. 30, 2014
Performance unit incentive plan (“PUP”)
Jun. 30, 2015
Restricted stock units
Jun. 30, 2014
Restricted stock units
Jun. 30, 2015
Restricted stock units
Jun. 30, 2014
Restricted stock units
Jun. 30, 2015
Restricted Stock
Feb. 28, 2015
Restricted Stock
Feb. 28, 2014
Restricted Stock
Jun. 30, 2015
Restricted Stock
Dec. 31, 2014
Restricted Stock
Jun. 30, 2015
Stock options
Jun. 30, 2015
Performance unit incentive plan (“PUP”)
Dec. 31, 2014
Performance unit incentive plan (“PUP”)
Jun. 30, 2015
Restructuring Charges
Jun. 30, 2015
Restructuring Charges
Employee Service Share-based Compensation, Allocation of Recognized Period Costs [Line Items]
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Share-based compensation before income tax benefit
 
$ (875,000)
$ (1,112,000)
$ (2,106,000)
$ (1,503,000)
 
 
$ (376,000)
$ (326,000)
$ (988,000)
$ (95,000)
$ 7,000 
$ (27,000)
$ (18,000)
$ 5,000 
 
 
 
 
 
 
 
 
$ (56,000)
$ (100,000)
Common Stock, Dividends, Per Share, Declared
$ 1.50 
$ 0.1 
$ 0.1 
$ 0.2 
$ 1.7 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Dividends, Common Stock
30,500,000 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Award vesting period
 
 
 
 
 
 
 
 
 
3 years 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Unamortized cost
 
 
 
 
 
 
 
 
 
 
 
3,700,000 
 
3,700,000 
 
 
 
 
 
 
 
 
 
 
Recognition Period of Unrecognized cost
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
1 year 8 months 12 days 
 
 
 
 
 
 
 
 
 
Repurchase of Common Stock for Employee Tax Withholding Obligations amount, shares
 
 
 
34,184 
44,806 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Repurchase of Common Stock for Employee Tax Withholding Obligations amount
 
 
 
900,000 
1,000,000 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Shares Available for Grant
 
962,825 
 
962,825 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Liability awards recorded
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
1,500,000 
3,500,000 
 
 
Payments To Employees
 
 
 
 
 
2,400,000 
2,900,000 
 
 
 
 
 
 
 
 
 
300,000 
200,000 
 
 
 
 
 
 
 
Liabilities related to restricted stock
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
$ 300,000 
$ 500,000 
 
 
 
 
 
Acquisition of Businesses - Schedule of Recognized Assets Acquired and Liabilities Assumed (Details)
In Thousands, unless otherwise specified
6 Months Ended 0 Months Ended
Jun. 30, 2015
USD ($)
Jun. 30, 2014
USD ($)
Dec. 31, 2014
USD ($)
Sep. 16, 2014
Blitz Communication Group Limited
USD ($)
Sep. 16, 2014
Blitz Communication Group Limited
GBP (£)
Oct. 7, 2014
onPeak LLC
USD ($)
Oct. 7, 2014
Travel Planners, Inc
USD ($)
Nov. 24, 2014
N200 Limited and Affiliates
USD ($)
Nov. 24, 2014
N200 Limited and Affiliates
EUR (€)
Business Acquisition [Line Items]
 
 
 
 
 
 
 
 
 
Purchase price
 
 
 
$ 24,416 
£ 15,000 
$ 42,950 
$ 33,674 
$ 12,068 
€ 9,700 
Additional purchase price payable for tax election
 
 
 
 
 
 
896 
 
 
Cash acquired
 
 
 
(190)
 
(4,064)
(4,204)
(943)
 
Working capital adjustment
 
 
 
 
 
 
(279)
458 
 
Contingent consideration
 
 
 
 
 
 
 
1,145 
 
Purchase price, net of cash acquired
123 
 
24,226 
 
38,886 
30,087 
12,728 
 
Accounts receivable, net
 
 
 
264 
 
4,008 
1,450 
1,732 
 
Inventory
 
 
 
433 
 
 
 
46 
 
Prepaid expenses
 
 
 
410 
 
640 
120 
115 
 
Property and equipment, net
 
 
 
5,951 
 
2,450 
93 
1,280 
 
Other non-current assets
 
 
 
 
 
309 
 
 
 
Intangible assets
 
 
 
8,692 
 
14,100 
14,400 
3,682 
 
Total assets acquired
 
 
 
15,750 
 
21,507 
16,063 
6,855 
 
Accounts payable
 
 
 
1,232 
 
738 
488 
421 
 
Accrued liabilities
 
 
 
2,246 
 
3,341 
1,557 
1,057 
 
Customer deposits
 
 
 
199 
 
4,225 
4,525 
569 
 
Deferred tax liability
 
 
 
282 
 
1,576 
 
911 
 
Revolving credit facility
 
 
 
488 
 
 
 
 
 
Accrued dilapidations
 
 
 
417 
 
 
 
 
 
Other liabilities
 
 
 
 
 
(309)
 
(106)
 
Total liabilities acquired
 
 
 
(4,864)
 
(10,189)
(6,570)
(3,064)
 
Total fair value of net assets acquired
 
 
 
10,886 
 
11,318 
9,493 
3,791 
 
Excess purchase price over fair value of net assets acquired (“goodwill”)
$ 190,035 
 
$ 194,197 
$ 13,340 
 
$ 27,568 
$ 20,594 
$ 8,937 
 
Acquisition of Businesses - Unaudited Pro Forma (Details) (USD $)
In Thousands, except Per Share data, unless otherwise specified
3 Months Ended
Jun. 30, 2015
Jun. 30, 2014
Business Combinations [Abstract]
 
 
Revenue
$ 275,748 
$ 576,599 
Depreciation and amortization
9,666 
19,024 
Income from continuing operations
10,517 
19,932 
Net income attributable to Viad
$ 9,251 
$ 31,548 
Diluted net income (USD per share)
$ 0.46 
$ 1.56 
Basic net income (USD per share)
$ 0.47 
$ 1.58 
Acquisition of Businesses - Narrative (Details)
6 Months Ended 0 Months Ended 6 Months Ended 0 Months Ended 6 Months Ended 0 Months Ended 6 Months Ended 0 Months Ended 6 Months Ended 0 Months Ended 6 Months Ended
Jun. 30, 2015
USD ($)
Jul. 1, 2014
West Glacier, Apgar Village, and other operations
USD ($)
Jun. 30, 2015
West Glacier, Apgar Village, and other operations
USD ($)
Jul. 31, 2014
West Glacier, Apgar Village, and other operations
USD ($)
Sep. 16, 2014
Blitz Communication Group Limited
USD ($)
Sep. 16, 2014
Blitz Communication Group Limited
GBP (£)
Jun. 30, 2015
Blitz Communication Group Limited
USD ($)
Oct. 7, 2014
onPeak LLC
USD ($)
Jun. 30, 2015
onPeak LLC
USD ($)
Oct. 7, 2014
Travel Planners, Inc
USD ($)
Jun. 30, 2015
Travel Planners, Inc
USD ($)
Nov. 24, 2014
N200 Limited and Affiliates
USD ($)
Nov. 24, 2014
N200 Limited and Affiliates
EUR (€)
Sep. 16, 2014
N200 Limited and Affiliates
Jun. 30, 2015
N200 Limited and Affiliates
USD ($)
Business Acquisition [Line Items]
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Purchase price
 
$ 16,500,000 
 
 
$ 24,416,000 
£ 15,000,000 
 
$ 42,950,000 
 
$ 33,674,000 
 
$ 12,068,000 
€ 9,700,000 
 
 
Liability for working capital adjustment
 
 
 
300,000 
 
 
 
 
 
 
 
 
 
 
 
Acquisition adjustment for assets acquired and liabilities assumed
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Acquisition adjustment for property, plant, and equipment
 
 
 
 
 
 
100,000 
 
 
 
 
 
 
 
 
Acquisition adjustment for intangibles
700,000 
 
 
 
 
 
16,000 
 
200,000 
 
600,000 
 
 
 
(100,000)
Business Combination, Provisional Information, Initial Accounting Incomplete, Adjustment, Payable Due to Tax Election
 
 
 
 
 
 
 
 
 
 
400,000 
 
 
 
 
Acquisition adjustment for accrued dilapidations
 
 
 
 
 
 
200,000 
 
 
 
 
 
 
 
 
Acquisition adjustment for deferred taxes
 
 
 
 
 
 
41,000 
 
38,000 
 
 
 
 
 
(20,000)
Acquisition adjustment for goodwill
(400,000)
 
 
 
 
 
200,000 
 
(200,000)
 
 
 
 
 
(300,000)
Goodwill expected to be tax deductible, term of recognition
 
 
 
 
15 years 
15 years 
 
15 years 
 
15 years 
 
15 years 
15 years 
 
 
Intangible assets
 
 
 
 
8,692,000 
 
 
14,100,000 
 
14,400,000 
 
3,682,000 
 
 
 
Weighted average useful life of intangibles
 
 
 
 
6 years 10 months 24 days 
6 years 10 months 24 days 
 
9 years 10 months 24 days 
 
9 years 9 months 18 days 
 
 
 
7 years 4 months 24 days 
 
Escrow deposit
 
 
 
 
 
 
 
4,100,000 
 
8,800,000 
 
 
 
 
 
Goodwill deductible
 
 
 
 
 
 
 
9,300,000 
 
 
 
 
 
 
 
Working capital adjustment
 
 
 
 
 
 
 
 
 
(279,000)
 
458,000 
 
 
 
Contingent liability
 
 
 
 
 
 
 
 
 
900,000 
 
 
1,000,000 
 
 
Acquisition adjustment for contingent consideration
 
 
 
 
 
 
 
 
 
 
 
 
 
 
100,000 
Acquisition adjustment for working capital payable
 
 
 
 
 
 
 
 
 
 
 
 
 
 
500,000 
Acquisition adjustment for accounts payable
 
 
 
 
 
 
 
 
 
 
 
 
 
 
15,000 
Acquisition adjustment for accrued liabilities
 
 
 
 
 
 
 
 
 
 
$ 100,000 
 
 
 
$ 100,000 
Inventories - Components of Inventories (Details) (USD $)
In Thousands, unless otherwise specified
Jun. 30, 2015
Dec. 31, 2014
Components of Inventories
 
 
Raw materials
$ 17,383 
$ 16,749 
Work in process
13,122 
15,652 
Inventories
$ 30,505 
$ 32,401 
Other Current Assets (Details) (USD $)
In Thousands, unless otherwise specified
Jun. 30, 2015
Dec. 31, 2014
Deferred Costs, Capitalized, Prepaid, and Other Assets Disclosure [Abstract]
 
 
Prepaid software maintenance
$ 4,173 
$ 1,934 
Income tax receivable
3,182 
1,869 
Prepaid vendor payments
2,596 
2,689 
Prepaid rent
1,300 
186 
Prepaid taxes
1,213 
1,416 
Prepaid insurance
852 
2,170 
Prepaid other
4,344 
4,427 
Other
1,891 
2,749 
Other current assets
$ 19,551 
$ 17,440 
Property and Equipment, Net - Schedule of Property and Equipment (Details) (USD $)
In Thousands, unless otherwise specified
Jun. 30, 2015
Dec. 31, 2014
Property and Equipment
 
 
Gross property and equipment
$ 479,663 
$ 487,899 
Less: accumulated depreciation
(287,654)
(288,328)
Property and equipment, net
192,009 
199,571 
Land and land interests
 
 
Property and Equipment
 
 
Gross property and equipment
29,722 
30,360 
Buildings and leasehold improvements
 
 
Property and Equipment
 
 
Gross property and equipment
135,225 
138,104 
Equipment and other
 
 
Property and Equipment
 
 
Gross property and equipment
$ 314,716 
$ 319,435 
Property and Equipment, Net - Narrative (Details) (USD $)
In Millions, unless otherwise specified
3 Months Ended 6 Months Ended
Jun. 30, 2015
Jun. 30, 2014
Jun. 30, 2015
Jun. 30, 2014
Property, Plant and Equipment [Abstract]
 
 
 
 
Depreciation expense
$ 7.4 
$ 6.9 
$ 14.1 
$ 13.4 
Other Investments and Assets - Summary of Other Investments and Assets (Details) (USD $)
In Thousands, unless otherwise specified
Jun. 30, 2015
Dec. 31, 2014
Investments, All Other Investments [Abstract]
 
 
Cash surrender value of life insurance
$ 20,939 
$ 20,866 
Self-insured liability receivable
7,728 
7,728 
Workers’ compensation insurance security deposits
4,250 
4,250 
Other mutual funds
2,371 
2,536 
Other
5,521 
5,294 
Other investments and assets
$ 40,809 
$ 40,674 
Other Current Liabilities - Schedule of Other Current Liabilities (Details) (USD $)
In Thousands, unless otherwise specified
Jun. 30, 2015
Dec. 31, 2014
Continuing operations:
 
 
Self-insured liability accrual
$ 6,567 
$ 6,297 
Accrued employee benefit costs
4,109 
3,215 
Accrued foreign income taxes
3,375 
2,370 
Accrued sales and use taxes
2,745 
3,624 
Accrued dividends
2,099 
2,107 
Current portion of pension liability
1,729 
1,641 
Deferred rent
1,689 
783 
Accrued professional fees
1,078 
1,228 
Accrued restructuring
956 
1,154 
Accrued rebates
928 
1,600 
Other
9,389 
2,837 
Total continuing operations
34,664 
26,856 
Discontinued operations:
 
 
Environmental remediation liabilities
272 
350 
Self-insured liability accrual
156 
173 
Other
434 
408 
Total discontinued operations
862 
931 
Other current liabilities
$ 35,526 
$ 27,787 
Goodwill and Other Intangible Assets - Summary of Goodwill Balances by Component and Segment (Details) (USD $)
In Thousands, unless otherwise specified
6 Months Ended
Jun. 30, 2015
Changes in the carrying amount of goodwill
 
Balance at December 31, 2014
$ 194,197 
Purchase price allocation adjustments
441 
Foreign currency translation adjustments
(4,603)
Balance at June 30, 2015
190,035 
Marketing & Events U.S.
 
Changes in the carrying amount of goodwill
 
Balance at December 31, 2014
110,618 
Purchase price allocation adjustments
230 
Foreign currency translation adjustments
Balance at June 30, 2015
110,848 
Marketing & Events International
 
Changes in the carrying amount of goodwill
 
Balance at December 31, 2014
42,221 
Purchase price allocation adjustments
211 
Foreign currency translation adjustments
(1,524)
Balance at June 30, 2015
40,908 
Travel & Recreation Group
 
Changes in the carrying amount of goodwill
 
Balance at December 31, 2014
41,358 
Purchase price allocation adjustments
Foreign currency translation adjustments
(3,079)
Balance at June 30, 2015
$ 38,279 
Goodwill and Other Intangible Assets - Summary of Other Intangible Assets (Details) (USD $)
In Thousands, unless otherwise specified
Jun. 30, 2015
Dec. 31, 2014
Finite-Lived Intangible Assets, Net [Abstract]
 
 
Amortized intangible assets, Gross Carrying Value
$ 43,557 
$ 46,200 
Accumulated Amortization
(6,643)
(3,693)
Intangible Assets, Gross (Excluding Goodwill)
44,017 
46,660 
Customer contracts and relationships
 
 
Finite-Lived Intangible Assets, Net [Abstract]
 
 
Amortized intangible assets, Gross Carrying Value
38,943 
41,624 
Accumulated Amortization
(5,188)
(2,961)
Other
 
 
Finite-Lived Intangible Assets, Net [Abstract]
 
 
Amortized intangible assets, Gross Carrying Value
4,614 
4,576 
Accumulated Amortization
(1,455)
(732)
Business licenses
 
 
Finite-Lived Intangible Assets, Net [Abstract]
 
 
Accumulated Amortization
Unamortized intangible assets, Gross Carrying Value
$ 460 
$ 460 
Goodwill and Other Intangible Assets - Narrative (Details) (USD $)
In Millions, unless otherwise specified
3 Months Ended 6 Months Ended
Jun. 30, 2015
Jun. 30, 2014
Jun. 30, 2015
Jun. 30, 2014
Goodwill and Intangible Assets Disclosure [Abstract]
 
 
 
 
Acquisition adjustment for goodwill
 
 
$ 0.4 
 
Acquisition adjustment for intangibles
 
 
0.7 
 
Intangible asset amortization expense
$ 1.8 
$ 0.3 
$ 3.8 
$ 0.3 
Other Deferred Items Liabilities - Schedule of Other Deferred Items and Liabilities (Details) (USD $)
In Thousands, unless otherwise specified
Jun. 30, 2015
Dec. 31, 2014
Continuing operations:
 
 
Self-insured liability accrual
$ 12,931 
$ 13,525 
Self-insured excess liability
7,728 
7,728 
Accrued compensation
6,930 
6,824 
Deferred rent income
3,188 
2,787 
Foreign deferred tax liability
2,094 
2,135 
Accrued restructuring
460 
555 
Other
3,331 
5,117 
Total continuing operations
36,662 
38,671 
Discontinued operations:
 
 
Environmental remediation liabilities
4,365 
4,395 
Self-insured liability accrual
4,234 
4,327 
Accrued income taxes
997 
1,119 
Other
1,134 
1,250 
Total discontinued operations
10,730 
11,091 
Other deferred items and liabilities
$ 47,392 
$ 49,762 
Debt and Capital Lease Obligations - Schedule of Long Term Debt (Details) (USD $)
In Thousands, unless otherwise specified
Jun. 30, 2015
Dec. 31, 2014
Debt Disclosure [Abstract]
 
 
Revolving Credit Facility and Term Loan, 2.3% and 2.4% weighted-average interest rate at June 30, 2015 and December 31, 2014, respectively, due through 2019
$ 131,874 
$ 139,500 
Capital lease obligations, 6.0% weighted-average interest at both June 30, 2015 and December 31, 2014, due through 2018
1,390 
1,520 
Total debt
133,264 
141,020 
Current portion
(29,532)
(27,856)
Long-term debt and capital lease obligations
$ 103,732 
$ 113,164 
Debt and Capital Lease Obligations - Narrative (Details) (USD $)
6 Months Ended 12 Months Ended 12 Months Ended 12 Months Ended
Jun. 30, 2015
Dec. 31, 2014
Jun. 30, 2015
Revolving Credit Facility
Dec. 31, 2014
Revolving Credit Facility
Jun. 30, 2015
Term Loan
Dec. 31, 2014
Term Loan
Dec. 31, 2014
Amended and Restated Credit Agreement
Dec. 31, 2014
Amended and Restated Credit Agreement
Top Tier Foreign Subsidiaries
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, 2014
Amended and Restated Credit Agreement
First Debt Covenant Trigger
Dec. 31, 2014
Amended and Restated Credit Agreement
Second Debt Covenant Trigger
Oct. 10, 2014
Amended 2014 Credit Facility
Revolving Credit Facility
Jun. 30, 2015
2011 Credit Facility
Line of Credit Facility [Line Items]
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Interest rate on credit facility
2.30% 
2.40% 
 
 
 
 
 
 
 
 
 
 
 
 
 
Weighted interest rate on long term debt
6.00% 
6.00% 
 
 
 
 
 
 
 
 
 
 
 
 
 
Borrowing capacity on line of credit
 
 
 
 
 
 
 
 
$ 300,000,000 
$ 175,000,000 
$ 125,000,000 
 
 
$ 180,000,000 
 
Additional borrowing capacity on line of credit
 
 
 
 
 
 
 
 
 
100,000,000 
 
 
 
 
 
Line of Credit borrowings used to support letter of credit
 
 
 
 
 
 
 
 
 
40,000,000 
 
 
 
 
 
Percent of lenders security interest on capital stock foreign subsidiary
 
 
 
 
 
 
 
65.00% 
 
 
 
 
 
 
 
Fixed charge coverage ratio
2.48 
2.61 
 
 
 
 
1.75 
 
 
 
 
2.00 
 
 
 
Leverage ratio
1.62 
1.73 
 
 
 
 
3.00 
 
 
 
 
2.75 
2.50 
 
 
Annual share repurchase limit
 
 
 
 
 
 
20,000,000 
 
 
 
 
 
 
 
 
Leverage ratio required for dividend or share activity
 
 
 
 
 
 
2.00 
 
 
 
 
 
 
 
 
Required level of restricted cash
 
 
 
 
 
 
100,000,000 
 
 
 
 
 
 
 
 
Balance of long term debt
133,264,000 
141,020,000 
 
 
 
 
 
 
 
 
 
 
 
 
133,300,000 
Revolving Credit Facility and Term Loan, 2.3% and 2.4% weighted-average interest rate at June 30, 2015 and December 31, 2014, respectively, due through 2019
131,874,000 
139,500,000 
10,000,000 
14,500,000 
121,900,000 
125,000,000 
 
 
 
 
 
 
 
 
 
Capital lease obligations, 6.0% weighted-average interest at both June 30, 2015 and December 31, 2014, due through 2018
1,390,000 
1,520,000 
 
 
 
 
 
 
 
 
 
 
 
 
 
Remaining borrowing capacity on line of credit
162,400,000 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Letters of credit outstanding
2,600,000 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Commitment fee percentage on line of credit
 
0.40% 
 
 
 
 
 
 
 
 
 
 
 
 
 
Maximum potential amount of future payments
3,600,000 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Recourse provisions
There are no recourse provisions that would enable Viad 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 Viad could recover payments. 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Fair value of debt
$ 105,100,000 
$ 123,000,000 
 
 
 
 
 
 
 
 
 
 
 
 
 
Fair Value Measurements - Recurring and Nonrecurring Basis (Details) (Fair Value, Measurements, Recurring, USD $)
In Thousands, unless otherwise specified
Jun. 30, 2015
Dec. 31, 2014
Fair value information related to assets
 
 
Assets
$ 9,691 
$ 11,054 
Liabilities
(1,114)
(1,210)
Earnout contingent consideration liability
 
 
Fair value information related to assets
 
 
Liabilities
(1,114)
(1,210)
Quoted Prices in Active Markets (Level 1)
 
 
Fair value information related to assets
 
 
Assets
9,691 
11,054 
Liabilities
Quoted Prices in Active Markets (Level 1) |
Earnout contingent consideration liability
 
 
Fair value information related to assets
 
 
Liabilities
Significant Other Observable Inputs (Level 2)
 
 
Fair value information related to assets
 
 
Assets
Liabilities
Significant Other Observable Inputs (Level 2) |
Earnout contingent consideration liability
 
 
Fair value information related to assets
 
 
Liabilities
Significant Unobserved Inputs (Level 3)
 
 
Fair value information related to assets
 
 
Assets
Liabilities
(1,114)
(1,210)
Significant Unobserved Inputs (Level 3) |
Earnout contingent consideration liability
 
 
Fair value information related to assets
 
 
Liabilities
(1,114)
(1,210)
Money market funds
 
 
Fair value information related to assets
 
 
Assets
7,320 
8,518 
Money market funds |
Quoted Prices in Active Markets (Level 1)
 
 
Fair value information related to assets
 
 
Assets
7,320 
8,518 
Money market funds |
Significant Other Observable Inputs (Level 2)
 
 
Fair value information related to assets
 
 
Assets
Money market funds |
Significant Unobserved Inputs (Level 3)
 
 
Fair value information related to assets
 
 
Assets
Other mutual funds
 
 
Fair value information related to assets
 
 
Assets
2,371 
2,536 
Other mutual funds |
Quoted Prices in Active Markets (Level 1)
 
 
Fair value information related to assets
 
 
Assets
2,371 
2,536 
Other mutual funds |
Significant Other Observable Inputs (Level 2)
 
 
Fair value information related to assets
 
 
Assets
Other mutual funds |
Significant Unobserved Inputs (Level 3)
 
 
Fair value information related to assets
 
 
Assets
$ 0 
$ 0 
Fair Value Measurements - Narrative (Details) (USD $)
6 Months Ended 12 Months Ended
Jun. 30, 2015
Dec. 31, 2014
Cash and Cash Equivalents [Line Items]
 
 
Unrealized gains on the investments after-tax
$ 605,000 
$ 471,000 
Money market funds
 
 
Cash and Cash Equivalents [Line Items]
 
 
Unrealized gains on the investments
 
Other mutual funds
 
 
Cash and Cash Equivalents [Line Items]
 
 
Unrealized gains on the investments
1,000,000 
800,000 
Fair Value, Measurements, Recurring
 
 
Cash and Cash Equivalents [Line Items]
 
 
Assets, Fair Value Disclosure
9,691,000 
11,054,000 
Fair Value, Measurements, Recurring |
Money market funds
 
 
Cash and Cash Equivalents [Line Items]
 
 
Assets, Fair Value Disclosure
7,320,000 
8,518,000 
Fair Value, Measurements, Recurring |
Other mutual funds
 
 
Cash and Cash Equivalents [Line Items]
 
 
Assets, Fair Value Disclosure
$ 2,371,000 
$ 2,536,000 
Stockholders' Equity - Reconciliation of Stockholders' Equity to Noncontrolling Interests (Details) (USD $)
In Thousands, unless otherwise specified
3 Months Ended 6 Months Ended
Jun. 30, 2015
Jun. 30, 2014
Jun. 30, 2015
Jun. 30, 2014
Noncontrolling Interest [Line Items]
 
 
 
 
Net Income (Loss) Attributable to Parent
$ 22,389 
$ 6,742 
$ 20,333 
$ 28,624 
Beginning Balance
 
 
347,702 
356,543 
Net income
22,280 
6,609 
20,160 
31,028 
Dividends on common stock
 
 
(4,008)
(34,534)
Common stock purchased for treasury
 
 
(5,969)
(11,610)
Employee benefit plans
 
 
4,790 
4,004 
Unrealized foreign currency translation adjustments, net of tax(1)
5,953 1
6,582 1
(11,626)1
(151)1
Tax benefits from shared-based compensation
 
 
232 
 
Other changes to accumulated other comprehensive income
 
 
298 
 
Unrealized gains (losses) on investments, net of tax(1)
(26)1
41 1
133 1
50 1
ESOP allocation adjustment
 
 
 
44 
Other
 
 
(2)
36 
Ending Balance
351,577 
345,410 
351,577 
345,410 
Total Viad Equity
 
 
 
 
Noncontrolling Interest [Line Items]
 
 
 
 
Net Income (Loss) Attributable to Parent
 
 
20,333 
 
Beginning Balance
 
 
335,387 
347,441 
Net income
 
 
 
28,624 
Dividends on common stock
 
 
(4,008)
(34,534)
Common stock purchased for treasury
 
 
(5,969)
(11,610)
Employee benefit plans
 
 
4,790 
4,004 
Unrealized foreign currency translation adjustments, net of tax(1)
 
 
(11,626)
(151)
Tax benefits from shared-based compensation
 
 
232 
 
Other changes to accumulated other comprehensive income
 
 
298 
 
Unrealized gains (losses) on investments, net of tax(1)
 
 
 
50 
ESOP allocation adjustment
 
 
 
44 
Other
 
 
(1)
36 
Ending Balance
339,436 
333,904 
339,436 
333,904 
Non-Controlling Interest
 
 
 
 
Noncontrolling Interest [Line Items]
 
 
 
 
Beginning Balance
 
 
12,315 
9,102 
Net income
 
 
(173)
2,404 
Dividends on common stock
 
 
Common stock purchased for treasury
 
 
Employee benefit plans
 
 
Unrealized foreign currency translation adjustments, net of tax(1)
 
 
Tax benefits from shared-based compensation
 
 
 
Other changes to accumulated other comprehensive income
 
 
 
Unrealized gains (losses) on investments, net of tax(1)
 
 
 
ESOP allocation adjustment
 
 
 
Other
 
 
(1)
Ending Balance
$ 12,141 
$ 11,506 
$ 12,141 
$ 11,506 
Stockholders' Equity - Schedule of Accumulated Other Comprehensive Income (Loss) (Details) (USD $)
In Thousands, unless otherwise specified
6 Months Ended
Jun. 30, 2015
Jun. 30, 2014
Accumulated Other Comprehensive Income (Loss), Net of Tax [Roll Forward]
 
 
Balance at December 31, 2014
$ (394)
 
Other comprehensive income (loss) before reclassifications
(11,458)
 
Amounts reclassified from AOCI, net of tax
(65)
 
Net other comprehensive income (loss)
(11,523)
 
Balance at June 30, 2015
(11,917)
 
Unrealized Gains on Investments
 
 
Accumulated Other Comprehensive Income (Loss), Net of Tax [Roll Forward]
 
 
Balance at December 31, 2014
471 
 
Other comprehensive income (loss) before reclassifications
168 
 
Amounts reclassified from AOCI, net of tax
(34)
(25)
Net other comprehensive income (loss)
134 
 
Balance at June 30, 2015
605 
 
Cumulative Foreign Currency Translation Adjustments
 
 
Accumulated Other Comprehensive Income (Loss), Net of Tax [Roll Forward]
 
 
Balance at December 31, 2014
12,415 
 
Other comprehensive income (loss) before reclassifications
(11,626)
 
Amounts reclassified from AOCI, net of tax
 
Net other comprehensive income (loss)
(11,626)
 
Balance at June 30, 2015
789 
 
Unrecognized Net Actuarial Loss and Prior Service Credit, Net
 
 
Accumulated Other Comprehensive Income (Loss), Net of Tax [Roll Forward]
 
 
Balance at December 31, 2014
(13,280)
 
Other comprehensive income (loss) before reclassifications
 
Amounts reclassified from AOCI, net of tax
(31)
37 
Net other comprehensive income (loss)
(31)
 
Balance at June 30, 2015
$ (13,311)
 
Stockholders' Equity - Reclassification out of Accumulated Other Comprehensive Income (Loss) (Details) (USD $)
In Thousands, unless otherwise specified
3 Months Ended 6 Months Ended
Jun. 30, 2015
Jun. 30, 2014
Jun. 30, 2015
Jun. 30, 2014
Reclassification Adjustment out of Accumulated Other Comprehensive Income [Line Items]
 
 
 
 
Income Tax Expense (Benefit)
$ 10,372 
$ 1,796 
$ 7,105 
$ 3,493 
Reclassification from Accumulated Other Comprehensive Income, Current Period, Net of Tax
 
 
65 
 
Unrealized Gains on Investments
 
 
 
 
Reclassification Adjustment out of Accumulated Other Comprehensive Income [Line Items]
 
 
 
 
Other Comprehensive Income (Loss), Reclassification Adjustment from AOCI for Sale of Securities, before Tax
 
 
54 
40 
Income Tax Expense (Benefit)
 
 
(20)
(15)
Reclassification from Accumulated Other Comprehensive Income, Current Period, Net of Tax
 
 
34 
25 
Unrecognized Net Actuarial Loss and Prior Service Credit, Net
 
 
 
 
Reclassification Adjustment out of Accumulated Other Comprehensive Income [Line Items]
 
 
 
 
Other Comprehensive Income (Loss), Reclassification Adjustment from AOCI, Pension and Other Postretirement Benefit Plans, for Net Gain (Loss), before Tax
 
 
(345)
(413)
Other Comprehensive (Income) Loss, Amortization Adjustment from AOCI, Pension and Other Postretirement Benefit Plans, for Net Prior Service Cost (Credit), before Tax
 
 
275 
353 
Income Tax Expense (Benefit)
 
 
101 
23 
Reclassification from Accumulated Other Comprehensive Income, Current Period, Net of Tax
 
 
$ 31 
$ (37)
Income (Loss) Per Share - Reconciliation of Basic and Diluted Income Per Share (Details) (USD $)
In Thousands, except Per Share data, unless otherwise specified
3 Months Ended 6 Months Ended
Jun. 30, 2015
Jun. 30, 2014
Jun. 30, 2015
Jun. 30, 2014
Numerator:
 
 
 
 
Net income attributable to Viad
$ 22,389 
$ 6,742 
$ 20,333 
$ 28,624 
Less: Allocation to non-vested shares
(321)
(124)
(304)
(546)
Net income allocated to Viad common stockholders
$ 22,068 
$ 6,618 
$ 20,029 
$ 28,078 
Denominator:
 
 
 
 
Weighted-average outstanding common shares
19,778 
19,869 
19,757 
19,909 
Additional dilutive shares related to share-based compensation
140 
280 
176 
353 
Weighted-average outstanding and potentially dilutive shares
19,918 
20,149 
19,933 
20,262 
Net income attributable to Viad common stockholders (USD per Share)
$ 1.12 
$ 0.33 
$ 1.01 
$ 1.41 
Net income attributable to Viad common stockholders (USD per share)
$ 1.12 
$ 0.33 
$ 1.01 1
$ 1.41 1
Income (Loss) Per Share - Additional Information (Details)
3 Months Ended 6 Months Ended
Jun. 30, 2015
Jun. 30, 2014
Jun. 30, 2015
Jun. 30, 2014
Income Per Share (Textual) [Abstract]
 
 
 
 
Additional dilutive shares related to share-based compensation
140,000 
280,000 
176,000 
353,000 
Stock options
 
 
 
 
Income Per Share (Textual) [Abstract]
 
 
 
 
Common stock shares effect would be anti-dilutive
 
 
7,386 
29,000 
Income Taxes - Narrative (Details) (USD $)
In Millions, unless otherwise specified
3 Months Ended 6 Months Ended
Jun. 30, 2015
Jun. 30, 2014
Jun. 30, 2015
Jun. 30, 2014
Dec. 31, 2014
Operating Loss Carryforwards [Line Items]
 
 
 
 
 
Effective income tax rate
31.80% 
18.60% 
26.00% 
17.00% 
 
Effective Income Tax Rate Reconciliation, at Federal Statutory Income Tax Rate, Percent
 
 
35.00% 
 
 
Tax credit carryforward
 
 
 
 
$ 21.8 
Liability for uncertain tax positions from continuing operations
1.2 
 
1.2 
 
1.3 
Liability for uncertain tax positions from discontinued operations
1.0 
 
1.0 
 
1.1 
Liability for uncertain tax positions
2.2 
 
2.2 
 
2.4 
Foreign Tax Authority
 
 
 
 
 
Operating Loss Carryforwards [Line Items]
 
 
 
 
 
Tax credit carryforward expiration period
 
 
10 years 
 
 
Tax credit carryforward
 
 
 
 
$ 12.7 
Pension and Postretirement Benefits - Components of net periodic benefit cost and other amounts recognized in other comprehensive income of Viad's postretirement benefit plans (Details) (USD $)
In Thousands, unless otherwise specified
3 Months Ended 6 Months Ended
Jun. 30, 2015
Jun. 30, 2014
Jun. 30, 2015
Jun. 30, 2014
Pension Plans
 
 
 
 
Net periodic benefit cost of pension and post retirement benefit plans
 
 
 
 
Service cost
$ 26 
$ 22 
$ 51 
$ 45 
Interest cost
275 
266 
526 
546 
Expected return on plan assets
(81)
(117)
(192)
(220)
Amortization of prior service credit
Recognized net actuarial loss
143 
85 
268 
204 
Net periodic benefit cost
363 
256 
653 
575 
US Postretirement Benefit Plans
 
 
 
 
Net periodic benefit cost of pension and post retirement benefit plans
 
 
 
 
Service cost
44 
60 
87 
94 
Interest cost
139 
201 
316 
377 
Expected return on plan assets
Amortization of prior service credit
(185)
(148)
(276)
(296)
Recognized net actuarial loss
134 
108 
273 
209 
Net periodic benefit cost
132 
221 
400 
384 
Foreign Pension Plans
 
 
 
 
Net periodic benefit cost of pension and post retirement benefit plans
 
 
 
 
Service cost
131 
105 
259 
209 
Interest cost
131 
160 
260 
320 
Expected return on plan assets
(152)
(162)
(301)
(323)
Amortization of prior service credit
Recognized net actuarial loss
Net periodic benefit cost
$ 112 
$ 105 
$ 222 
$ 211 
Pension and Postretirement Benefits - Narrative (Details) (USD $)
In Millions, unless otherwise specified
6 Months Ended
Jun. 30, 2015
Pension Plans |
Funded Plan
 
Defined Benefit Plan Disclosure [Line Items]
 
Amount expected to contribute in funded pension plans
$ 0.8 
Pension Contributions
0.3 
Pension Plans |
Unfunded Pension Plans
 
Defined Benefit Plan Disclosure [Line Items]
 
Amount expected to contribute in unfunded pension plans
0.6 
Pension Contributions
0.3 
US Postretirement Benefit Plans
 
Defined Benefit Plan Disclosure [Line Items]
 
Amount expected to contribute in postretirement benefit plans
1.1 
Pension and Other Postretirement Benefit Contributions
$ 0.7 
Restructuring Charges - Reconciliation of Beginning and Ending Liability Balances by Major Restructuring Activity (Details) (USD $)
In Thousands, unless otherwise specified
3 Months Ended 6 Months Ended
Jun. 30, 2015
Jun. 30, 2014
Jun. 30, 2015
Jun. 30, 2014
Reconciliation of beginning and ending liability balances by major restructuring activity
 
 
 
 
Beginning Balance
 
 
$ 1,944 
 
Restructuring charges
1,069 
1,365 
1,285 
1,576 
Restructuring liabilities
 
 
(1,669)
(3,001)
Adjustment to liability
 
 
(144)
 
Closing Balance
1,416 
 
1,416 
 
Marketing & Events Group
 
 
 
 
Reconciliation of beginning and ending liability balances by major restructuring activity
 
 
 
 
Restructuring charges
383 
244 
471 
206 
Marketing & Events Group |
Severance & Employee Benefits
 
 
 
 
Reconciliation of beginning and ending liability balances by major restructuring activity
 
 
 
 
Beginning Balance
 
 
543 
 
Restructuring charges
 
 
643 
 
Restructuring liabilities
 
 
(891)
 
Adjustment to liability
 
 
 
Closing Balance
295 
 
295 
 
Marketing & Events Group |
Facilities
 
 
 
 
Reconciliation of beginning and ending liability balances by major restructuring activity
 
 
 
 
Beginning Balance
 
 
1,161 
 
Restructuring charges
 
 
98 
 
Restructuring liabilities
 
 
(235)
 
Adjustment to liability
 
 
 
Closing Balance
1,024 
 
1,024 
 
Other Restructuring |
Severance & Employee Benefits
 
 
 
 
Reconciliation of beginning and ending liability balances by major restructuring activity
 
 
 
 
Beginning Balance
 
 
240 
 
Restructuring charges
 
 
544 
 
Restructuring liabilities
 
 
(543)
 
Adjustment to liability
 
 
(144)
 
Closing Balance
$ 97 
 
$ 97 
 
Litigation, Claims, Contingencies and Other (Details) (USD $)
6 Months Ended
Jun. 30, 2015
Agreement
Loss Contingencies [Line Items]
 
Environmental remediation liability
$ 4,600,000 
Maximum potential amount of future payments
3,600,000 
Guarantees relate to leased facilities expiry date
October 2017 
Recourse provision to recover guarantees
Bargaining agreements
100 
Self insurance reserve
19,500,000 
Workers' compensation liability
12,300,000 
Self insurance reserve for general and auto
7,200,000 
Self insurance reserve on discontinued operations
4,400,000 
Payments for self insurance
2,400,000 
Self insurance reserve in which company is the primary obligor
7,700,000 
Self insurance reserve in which company is the primary obligor for workers compensation
4,600,000 
Self insurance reserve in which company is the primary obligor for general liability
3,100,000 
Minimum
 
Loss Contingencies [Line Items]
 
General range on claims
200,000.0 
Maximum
 
Loss Contingencies [Line Items]
 
General range on claims
$ 500,000.0 
Segment Information - Reconciliation of Income Statement Items from Reportable Segments (Details) (USD $)
In Thousands, unless otherwise specified
3 Months Ended 6 Months Ended
Jun. 30, 2015
Jun. 30, 2014
Jun. 30, 2015
Jun. 30, 2014
Reportable segments reconciliations:
 
 
 
 
Total revenues
$ 317,035 
$ 256,391 
$ 581,431 
$ 542,032 
Segment operating income (loss)
(34,303)
(12,145)
(30,368)
(23,467)
Interest income
443 
54 
506 
119 
Interest expense
(1,103)
(309)
(2,254)
(607)
Restructuring charges
(1,069)
(1,365)
(1,285)
(1,576)
Impairment charges
 
 
(884)
Income from continuing operations before income taxes
32,574 
9,641 
27,335 
20,519 
Marketing & Events Group
 
 
 
 
Reportable segments reconciliations:
 
 
 
 
Total revenues
286,569 
226,586 
543,497 
504,409 
Segment operating income (loss)
(30,083)
(9,020)
(33,767)
(27,190)
Restructuring charges
(383)
(244)
(471)
(206)
Marketing & Events International
 
 
 
 
Reportable segments reconciliations:
 
 
 
 
Restructuring charges
(133)
(990)
(271)
(1,520)
Impairment charges
(884)
(884)
Travel & Recreation Group
 
 
 
 
Reportable segments reconciliations:
 
 
 
 
Total revenues
30,466 
29,805 
37,934 
37,623 
Segment operating income (loss)
(6,203)
(5,116)
(1,394)
(307)
Restructuring charges
(148)
(135)
(142)
71 
Other Segments
 
 
 
 
Reportable segments reconciliations:
 
 
 
 
Segment operating income (loss)
(36,286)
(14,136)
(35,161)
(27,497)
Corporate
 
 
 
 
Reportable segments reconciliations:
 
 
 
 
Segment operating income (loss)
(1,983)
(1,991)
(4,793)
(4,030)
Restructuring charges
(405)
(401)
79 
Intersegment Eliminations |
Marketing & Events Group
 
 
 
 
Reportable segments reconciliations:
 
 
 
 
Total revenues
(7,903)
(5,632)
(9,154)
(7,922)
U.S. |
Marketing & Events Group
 
 
 
 
Reportable segments reconciliations:
 
 
 
 
Total revenues
208,749 
168,839 
401,692 
390,234 
Segment operating income (loss)
(18,974)
(5,124)
(21,611)
(20,975)
International |
Marketing & Events Group
 
 
 
 
Reportable segments reconciliations:
 
 
 
 
Total revenues
85,723 
63,379 
150,959 
122,097 
Segment operating income (loss)
$ (11,109)
$ (3,896)
$ (12,156)
$ (6,215)
Discontinued Operations - Narrative (Details) (USD $)
3 Months Ended 6 Months Ended 1 Months Ended 3 Months Ended 6 Months Ended
Jun. 30, 2015
Jun. 30, 2014
Jun. 30, 2015
Jun. 30, 2014
Jan. 31, 2014
Glacier Park
Jun. 30, 2014
Glacier Park
Jun. 30, 2014
Glacier Park
Income Statement, Balance Sheet and Additional Disclosures by Disposal Groups, Including Discontinued Operations [Line Items]
 
 
 
 
 
 
 
Proceeds from possessory interest and personal property—discontinued operations
 
 
$ 0 
$ 25,000,000 
$ 25,000,000 
 
 
Gain on Possessory Interest, before Tax
 
 
 
 
21,500,000 
 
 
Gain on Possessory Interest, Net of Tax, Attributable to Parent Only
 
 
 
 
14,300,000 
 
 
Gain on Possessory Interest, Net of Tax, Attributable to Noncontrolling Interest
 
 
 
 
2,700,000 
 
 
(Income) loss from discontinued operations
$ (78,000)
$ 1,236,000 
$ 70,000 
$ (14,002,000)
 
$ 964,000 
$ (14,274,000)
Discontinued Operations - Schedule of Disconnected Operations, Income Statement (Details) (USD $)
In Thousands, unless otherwise specified
3 Months Ended 6 Months Ended
Jun. 30, 2015
Jun. 30, 2014
Jun. 30, 2015
Jun. 30, 2014
Income Statement, Balance Sheet and Additional Disclosures by Disposal Groups, Including Discontinued Operations [Line Items]
 
 
 
 
Income (loss) from discontinued operations
$ 78 
$ (1,236)
$ (70)
$ 14,002 
Income from discontinued operations attributable to noncontrolling interest
 
 
(2,668)
Income (loss) from discontinued operations attributable to Viad
78 
(1,236)
(70)
11,334 
Glacier Park
 
 
 
 
Income Statement, Balance Sheet and Additional Disclosures by Disposal Groups, Including Discontinued Operations [Line Items]
 
 
 
 
Total revenue
 
 
Costs and expenses
 
(18)
 
(86)
Loss from discontinued operations, before income taxes
 
(18)
 
(86)
Income tax benefit
 
18 
 
38 
Loss from discontinued operations, net of tax
 
 
(48)
Gain (loss) on sale of discontinued operations, net of tax
 
(964)
 
14,322 
Income (loss) from discontinued operations
 
(964)
 
14,274 
Income from discontinued operations attributable to noncontrolling interest
 
 
(2,668)
Income (loss) from discontinued operations attributable to Viad
 
$ (964)
 
$ 11,606 
Discontinued Operations - Reconciliation of Noncontrolling Interest, Income Statement (Details) (USD $)
In Thousands, unless otherwise specified
3 Months Ended 6 Months Ended
Jun. 30, 2015
Jun. 30, 2014
Jun. 30, 2015
Jun. 30, 2014
Discontinued Operations and Disposal Groups [Abstract]
 
 
 
 
Loss from continuing operations
 
 
$ (173)
$ (264)
Income from discontinued operations
 
 
2,668 
Net income (loss) attributable to noncontrolling interest
$ (109)
$ (133)
$ (173)
$ 2,404