Cover Page
Cover Page - USD ($) $ in Billions | 12 Months Ended | ||
Jun. 30, 2019 | Aug. 31, 2019 | Dec. 31, 2018 | |
Document Information [Line Items] | |||
Document Type | 10-K | ||
Document Annual Report | true | ||
Document Period End Date | Jun. 30, 2019 | ||
Document Transition Report | false | ||
Entity File Number | 1-5128 | ||
Entity Registrant Name | MEREDITH CORPORATION | ||
Entity Incorporation, State or Country Code | IA | ||
Entity Tax Identification Number | 42-0410230 | ||
Entity Address, Address Line One | 1716 Locust Street, | ||
Entity Address, City or Town | Des Moines, | ||
Entity Address, State or Province | IA | ||
Entity Address, Postal Zip Code | 50309-3023 | ||
City Area Code | (515) | ||
Local Phone Number | 284-3000 | ||
Title of 12(b) Security | Common Stock, par value $1 | ||
Trading Symbol | MDP | ||
Security Exchange Name | NYSE | ||
Title of 12(g) Security | Class B Common Stock, par value $1 | ||
Entity Well-known Seasoned Issuer | Yes | ||
Entity Voluntary Filers | No | ||
Entity Current Reporting Status | Yes | ||
Entity Interactive Data Current | Yes | ||
Entity Filer Category | Large Accelerated Filer | ||
Entity Small Business | false | ||
Entity Emerging Growth Company | false | ||
Entity Shell Company | false | ||
Entity Public Float | $ 2 | ||
Entity Central Index Key | 0000065011 | ||
Current Fiscal Year End Date | --06-30 | ||
Document Fiscal Year Focus | 2019 | ||
Document Fiscal Period Focus | FY | ||
Amendment Flag | false | ||
Common stock | |||
Document Information [Line Items] | |||
Entity Common Stock, Shares Outstanding | 40,136,445 | ||
Class B stock | |||
Document Information [Line Items] | |||
Entity Common Stock, Shares Outstanding | 5,093,245 |
Consolidated Balance Sheets
Consolidated Balance Sheets - USD ($) $ in Millions | Jun. 30, 2019 | Jun. 30, 2018 |
Current assets | ||
Cash and cash equivalents | $ 45 | $ 437.6 |
Accounts receivable (net of allowances of $20.5 in 2019 and $14.4 in 2018) | 609.1 | 545.2 |
Inventories | 62.7 | 44.4 |
Current portion of subscription acquisition costs | 242 | 145 |
Current portion of broadcast rights | 7.1 | 9.8 |
Assets held-for-sale | 321 | 719.8 |
Other current assets | 63.2 | 114.9 |
Total current assets | 1,350.1 | 2,016.7 |
Property, plant, and equipment | ||
Land | 24.7 | 24.6 |
Buildings and improvements | 157.2 | 153.5 |
Machinery and equipment | 296.5 | 359.8 |
Leasehold improvements | 177.5 | 177.4 |
Capitalized software | 204.7 | 125.9 |
Construction in progress | 37.3 | 20.2 |
Total property, plant, and equipment | 897.9 | 861.4 |
Less accumulated depreciation | (447.6) | (377.7) |
Net property, plant, and equipment | 450.3 | 483.7 |
Subscription acquisition costs | 273.9 | 66.3 |
Broadcast rights | 6 | 18.9 |
Other assets | 263.6 | 263.3 |
Intangible assets, net | 1,813.6 | 2,006.2 |
Goodwill | 1,979.4 | 1,915.8 |
Total assets | 6,136.9 | 6,770.9 |
Current liabilities | ||
Current portion of long-term debt | 0 | 17.7 |
Current portion of long-term broadcast rights payable | 6.6 | 8.9 |
Accounts payable | 242.6 | 195.1 |
Accrued expenses | ||
Compensation and benefits | 151.9 | 122.3 |
Distribution expenses | 5.4 | 10 |
Other taxes and expenses | 143.3 | 278.3 |
Total accrued expenses | 300.6 | 410.6 |
Current portion of unearned revenues | 458.9 | 393.5 |
Liabilities associated with assets held-for-sale | 252.1 | 200 |
Total current liabilities | 1,260.8 | 1,225.8 |
Long-term debt | 2,333.3 | 3,117.9 |
Long-term broadcast rights payable | 8.4 | 20.8 |
Unearned revenues | 318.6 | 132.3 |
Deferred income taxes | 506.2 | 437 |
Other noncurrent liabilities | 194.8 | 217 |
Total liabilities | 4,622.1 | 5,150.8 |
Redeemable, convertible Series A preferred stock, par value $1 per share, $1,000 per share liquidation preference, authorized 2.5 shares, issued 0.7 shares | 540.2 | 522.6 |
Shareholders’ equity | ||
Series preferred stock, par value $1 per share, Authorized 2,500 shares; none issued | 0 | 0 |
Additional paid-in capital | 216.7 | 199.5 |
Retained earnings | 759 | 889.8 |
Accumulated other comprehensive loss | (46.3) | (36.7) |
Total shareholders’ equity | 974.6 | 1,097.5 |
Total liabilities, redeemable convertible preferred stock, and shareholders’ equity | 6,136.9 | 6,770.9 |
Common stock par value $1 per share | ||
Shareholders’ equity | ||
Common stock, par value $1 per share | 40.1 | 39.8 |
Class B stock $1 par value | ||
Shareholders’ equity | ||
Common stock, par value $1 per share | $ 5.1 | $ 5.1 |
Consolidated Balance Sheets (Pa
Consolidated Balance Sheets (Parenthetical) - USD ($) $ in Millions | Jun. 30, 2019 | Jun. 30, 2018 |
Current assets | ||
Accounts receivable allowances | $ 20.5 | $ 14.4 |
Shareholders’ equity | ||
Redeemable, convertible Series A preferred stock, par value per share (in usd per share) | $ 1 | $ 1 |
Redeemable, convertible Series A preferred stock, liquidation preference per share (in usd per share) | $ 1,000 | $ 1,000 |
Redeemable, convertible Series A preferred stock, shares authorized (in shares) | 2,500,000 | 2,500,000 |
Redeemable, convertible Series A preferred stock, shares issued (in shares) | 700,000 | 700,000 |
Preferred stock, par value per share (in usd per share) | $ 1 | $ 1 |
Preferred stock, shares authorized (in shares) | 2,500,000 | 2,500,000 |
Preferred stock, shares issued (in shares) | 0 | 0 |
Common stock | ||
Shareholders’ equity | ||
Common stock, par value per share (in usd per share) | $ 1 | $ 1 |
Common stock, shares authorized (in shares) | 80,000,000 | 80,000,000 |
Common stock, shares issued (in shares) | 40,100,000 | 39,800,000 |
Common stock, shares outstanding (in shares) | 40,100,000 | 39,800,000 |
Common stock, treasury (in shares) | 24,800,000 | 24,800,000 |
Class B stock $1 par value | ||
Shareholders’ equity | ||
Common stock, par value per share (in usd per share) | $ 1 | $ 1 |
Common stock, shares authorized (in shares) | 15,000,000 | 15,000,000 |
Common stock, shares issued (in shares) | 5,100,000 | 5,100,000 |
Common stock, shares outstanding (in shares) | 5,100,000 | 5,100,000 |
Consolidated Statements of Earn
Consolidated Statements of Earnings - USD ($) shares in Millions, $ in Millions | 3 Months Ended | 12 Months Ended | |||||||||
Jun. 30, 2019 | Mar. 31, 2019 | Dec. 31, 2018 | Sep. 30, 2018 | Jun. 30, 2018 | Mar. 31, 2018 | Dec. 31, 2017 | Sep. 30, 2017 | Jun. 30, 2019 | Jun. 30, 2018 | Jun. 30, 2017 | |
Revenues | |||||||||||
Total revenues | $ 785.6 | $ 750.1 | $ 878.4 | $ 774.4 | $ 798.7 | $ 655 | $ 417.7 | $ 392.8 | $ 3,188.5 | $ 2,264.2 | $ 1,713.3 |
Operating expenses | |||||||||||
Production, distribution, and editorial | 1,161.2 | 868 | 608.4 | ||||||||
Selling, general, and administrative | 346 | 350.3 | 1,350 | 987.5 | 726.4 | ||||||
Acquisition, disposition, and restructuring related activities | 100.9 | 170.1 | 10.3 | ||||||||
Depreciation and amortization | 247.6 | 129 | 53.8 | ||||||||
Impairment of long-lived assets | 41.8 | 22.7 | 6.2 | ||||||||
Total operating expenses | 2,901.5 | 2,177.3 | 1,405.1 | ||||||||
Income (loss) from operations | 23.5 | 75.6 | 133.7 | 54.2 | 66.5 | (72.5) | 36.7 | 56.2 | 287 | 86.9 | 308.2 |
Non-operating income, net | 24.2 | 0.7 | 0.9 | ||||||||
Interest expense, net | (170.6) | (97.2) | (18.8) | ||||||||
Earnings (loss) from continuing operations before income taxes | 140.6 | (9.6) | 290.3 | ||||||||
Income tax benefit (expense) | (11.5) | 123.6 | (101.4) | ||||||||
Earnings (loss) from continuing operations | (3.6) | 28.4 | 88.1 | 16.2 | 16.6 | (95.4) | 159.4 | 33.4 | 129.1 | 114 | 188.9 |
Loss from discontinued operations, net of income taxes | (9.4) | (4.7) | (69.5) | 0.8 | 0.3 | (14.9) | 0 | 0 | (82.8) | (14.6) | 0 |
Net earnings (loss) | $ (13) | $ 23.7 | $ 18.6 | $ 17 | $ 16.9 | $ (110.3) | $ 159.4 | $ 33.4 | 46.3 | 99.4 | 188.9 |
Earnings (loss) attributable to common shareholders | $ (32) | $ 66.4 | $ 188.9 | ||||||||
Basic earnings (loss) per share attributable to common shareholders | |||||||||||
Continuing operations (in dollars per share) | $ (0.51) | $ 0.20 | $ 1.50 | $ (0.07) | $ (0.06) | $ (2.41) | $ 3.55 | $ 0.75 | $ 1.12 | $ 1.80 | $ 4.23 |
Discontinued operations (in dollars per share) | (1.83) | (0.32) | 0 | ||||||||
Basic earnings (loss) per common share (in dollars per share) | (0.72) | 0.10 | (0.03) | (0.06) | (0.06) | (2.74) | 3.55 | 0.75 | $ (0.71) | $ 1.48 | $ 4.23 |
Basic average common shares outstanding (in shares) | 45.3 | 44.9 | 44.6 | ||||||||
Diluted earnings (loss) per share attributable to common shareholders | |||||||||||
Continuing operations (in dollars per share) | (0.51) | 0.20 | 1.46 | (0.07) | (0.06) | (2.41) | 3.49 | 0.73 | $ 1.12 | $ 1.79 | $ 4.16 |
Discontinued operations (in dollars per share) | (1.82) | (0.32) | 0 | ||||||||
Diluted earnings (loss) per common share (in dollars per share) | $ (0.72) | $ 0.10 | $ (0.01) | $ (0.06) | $ (0.06) | $ (2.74) | $ 3.49 | $ 0.73 | $ (0.70) | $ 1.47 | $ 4.16 |
Diluted average common shares outstanding (in shares) | 45.5 | 45.2 | 45.4 | ||||||||
Advertising related | |||||||||||
Revenues | |||||||||||
Total revenues | $ 1,686.6 | $ 1,190.7 | $ 934.1 | ||||||||
Consumer related | |||||||||||
Revenues | |||||||||||
Total revenues | $ 358.3 | $ 316.1 | 1,393.6 | 921.3 | 613.5 | ||||||
Other | |||||||||||
Revenues | |||||||||||
Total revenues | $ 108.3 | $ 152.2 | $ 165.7 |
Consolidated Statements of Comp
Consolidated Statements of Comprehensive Income - USD ($) $ in Millions | 12 Months Ended | ||
Jun. 30, 2019 | Jun. 30, 2018 | Jun. 30, 2017 | |
Statement of Comprehensive Income [Abstract] | |||
Net earnings | $ 46.3 | $ 99.4 | $ 188.9 |
Other comprehensive income (loss), net of income taxes | |||
Pension and other postretirement benefit plans activity | (6.8) | (0.8) | 5.3 |
Unrealized foreign currency translation loss, net | (2.8) | (12.9) | 0 |
Unrealized gain on interest rate swaps | 0 | 0 | 4.2 |
Other comprehensive income (loss), net of income taxes | (9.6) | (13.7) | 9.5 |
Comprehensive income | $ 36.7 | $ 85.7 | $ 198.4 |
Consolidated Statements of Shar
Consolidated Statements of Shareholders' Equity - USD ($) $ in Millions | Total | Common stock par value $1 per share | Class B stock $1 par value | Series A Preferred Stock | Common stock par value $1 per shareCommon stock par value $1 per share | Common stock par value $1 per shareClass B stock $1 par value | Additional Paid-in Capital | Retained Earnings | Retained EarningsCommon stock par value $1 per share | Retained EarningsClass B stock $1 par value | Retained EarningsSeries A Preferred Stock | Accumulated Other Comprehensive Income (Loss) |
Beginning balance at Jun. 30, 2016 | $ 889 | $ 39.3 | $ 5.2 | $ 54.3 | $ 818.7 | $ (28.5) | ||||||
Increase (Decrease) in Stockholders' Equity [Roll Forward] | ||||||||||||
Net earnings | 188.9 | 188.9 | ||||||||||
Other comprehensive income (loss), net of taxes | 9.5 | 9.5 | ||||||||||
Shares issued under various incentive plans, net of forfeitures | 38 | 0.9 | 37.1 | |||||||||
Purchases of Company stock | (53.3) | (0.9) | (52.4) | |||||||||
Share-based compensation | 12.8 | 12.8 | ||||||||||
Conversion of class B to common stock | 0 | 0.1 | (0.1) | |||||||||
Dividends paid | $ (81.4) | $ (10.5) | $ (81.4) | $ (10.5) | ||||||||
Tax benefit from incentive plans | 3 | 3 | ||||||||||
Ending balance at Jun. 30, 2017 | 996 | 39.4 | 5.1 | 54.8 | 915.7 | (19) | ||||||
Increase (Decrease) in Stockholders' Equity [Roll Forward] | ||||||||||||
Net earnings | 99.4 | 99.4 | ||||||||||
Other comprehensive income (loss), net of taxes | (13.7) | (13.7) | ||||||||||
Shares issued under various incentive plans, net of forfeitures | 19.3 | 0.9 | 18.4 | |||||||||
Issuance of replacement Time share-based compensation awards | 9.8 | 9.8 | ||||||||||
Purchases of Company stock | (31.1) | (0.5) | (30.6) | |||||||||
Share-based compensation | 30.4 | 30.4 | ||||||||||
Issuance of warrants and options | 115.6 | 115.6 | ||||||||||
Dividends paid | (87.8) | (10.8) | $ (22.9) | (87.8) | (10.8) | $ (22.9) | ||||||
Accretion of Series A preferred stock | (7.2) | (7.2) | ||||||||||
Reclassification adjustment for adoption of Accounting Standards Update 2018-02 | 0 | 4 | (4) | |||||||||
Ending balance at Jun. 30, 2018 | 1,097.5 | 39.8 | 5.1 | 199.5 | 889.8 | (36.7) | ||||||
Increase (Decrease) in Stockholders' Equity [Roll Forward] | ||||||||||||
Net earnings | 46.3 | 46.3 | ||||||||||
Other comprehensive income (loss), net of taxes | (9.6) | (9.6) | ||||||||||
Shares issued under various incentive plans, net of forfeitures | 4.6 | 0.5 | 4.1 | |||||||||
Purchases of Company stock | (10) | (0.2) | (9.8) | |||||||||
Share-based compensation | 22.9 | 22.9 | ||||||||||
Dividends paid | $ (94.6) | $ (11.4) | $ (55.9) | $ (94.6) | $ (11.4) | $ (55.9) | ||||||
Accretion of Series A preferred stock | (17.6) | (17.6) | ||||||||||
Ending balance at Jun. 30, 2019 | $ 974.6 | $ 40.1 | $ 5.1 | $ 216.7 | $ 759 | $ (46.3) |
Consolidated Statements of Sh_2
Consolidated Statements of Shareholders' Equity (Parenthetical) - $ / shares | 12 Months Ended | ||
Jun. 30, 2019 | Jun. 30, 2018 | Jun. 30, 2017 | |
Dividends paid per share (in dollars per share) | $ 2.240 | $ 2.130 | |
Common stock | |||
Dividends paid per share (in dollars per share) | 2.240 | 2.130 | $ 2.030 |
Class B stock | |||
Dividends paid per share (in dollars per share) | 2.240 | 2.130 | $ 2.030 |
Series A Preferred Stock | |||
Preferred dividends paid per share (in dollars per share) | $ 85.94 | $ 35.18 |
Consolidated Statements of Cash
Consolidated Statements of Cash Flows - USD ($) $ in Millions | 12 Months Ended | ||
Jun. 30, 2019 | Jun. 30, 2018 | Jun. 30, 2017 | |
Cash flows from operating activities | |||
Net earnings | $ 46.3 | $ 99.4 | $ 188.9 |
Adjustments to reconcile net earnings to net cash provided by operating activities | |||
Depreciation | 92.5 | 54.2 | 34.7 |
Amortization | 155.1 | 74.8 | 19.1 |
Share-based compensation | 22.9 | 30.4 | 12.8 |
Amortization of original issue discount and debt issuance costs | 7.8 | 6.1 | 0 |
Deferred income taxes | 66 | (116.5) | 42.5 |
Amortization of broadcast rights | 20 | 19.2 | 17.6 |
Payments for broadcast rights | (19.1) | (20.7) | (17) |
Write-down of impaired assets | 50.3 | 23 | 9.8 |
Loss on extinguishment of debt | 18.4 | 0 | 0 |
Fair value adjustment to contingent consideration | (5.3) | (4.8) | (19.5) |
Excess tax benefits from share-based payments | (6.8) | ||
Other operating activities, net | (10.2) | 13.1 | 0 |
Changes in assets and liabilities, net of acquisitions/dispositions | |||
Accounts receivable | (69.3) | 9.5 | (15.2) |
Inventories | (18.4) | (0.5) | (1.2) |
Other current assets | 57.4 | (4.9) | 4.7 |
Subscription acquisition costs | (312) | 13.4 | 4.7 |
Other assets | (21.9) | (101.8) | (2.1) |
Assets and liabilities held-for-sale | (18.6) | 22.3 | 0 |
Accounts payable | 36.2 | (12.6) | (15.5) |
Accrued expenses and other liabilities | (99.5) | 73.2 | 7.6 |
Unearned subscription revenues | 251.6 | (27.3) | (16.9) |
Other noncurrent liabilities | (4.9) | 0.4 | (29.6) |
Net cash provided by operating activities | 245.3 | 149.9 | 218.6 |
Cash flows from investing activities | |||
Acquisitions of and investments in businesses, net of cash acquired | (18.4) | (2,786.5) | (84.4) |
Proceeds from disposition of assets, net of cash sold | 349.1 | 219.2 | 1.5 |
Proceeds received in advance of sale of business | 90 | 0 | 0 |
Additions to property, plant, and equipment | (46.4) | (53.2) | (34.8) |
Other | 0 | 3.8 | 0 |
Net cash provided by (used in) investing activities | 374.3 | (2,616.7) | (117.7) |
Cash flows from financing activities | |||
Proceeds from issuance of long-term debt | 210 | 3,260 | 380 |
Repayments of long-term debt | (1,037) | (765.1) | (374.4) |
Issued preferred stock, warrants, and options proceeds, net of issuance costs | 0 | 631 | 0 |
Dividends paid | (161.9) | (121.5) | (91.9) |
Purchases of Company stock | (10) | (31.1) | (53.3) |
Proceeds from common stock issued | 4.6 | 19.3 | 38 |
Excess tax benefits from share-based payments | 6.8 | ||
Payment of acquisition related contingent consideration | (19.3) | (4.3) | (7.3) |
Debt acquisition costs | 0 | (70.8) | (1.5) |
Net cash provided by (used in) financing activities | (1,013.6) | 2,917.5 | (103.6) |
Effect of exchange rate changes on cash and cash equivalents | (1.4) | (4.1) | 0 |
Change in cash held-for-sale | 2.8 | (31.3) | 0 |
Net increase (decrease) in cash and cash equivalents | (392.6) | 415.3 | (2.7) |
Cash and cash equivalents at beginning of year | 437.6 | 22.3 | 25 |
Cash and cash equivalents at end of year | 45 | 437.6 | 22.3 |
Cash paid (received) | |||
Interest | 171.9 | 66.3 | 22 |
Income taxes | (11.7) | 24 | 73.1 |
Non-cash transactions | |||
Broadcast rights financed by contracts payable | $ 4.3 | $ 18.8 | $ 15.4 |
Summary of Significant Accounti
Summary of Significant Accounting Policies | 12 Months Ended |
Jun. 30, 2019 | |
Accounting Policies [Abstract] | |
Summary of Significant Accounting Policies | 1. Summary of Significant Accounting Policies Nature of Operations— Meredith Corporation (Meredith or the Company) is a diversified media company. The Company has two reporting segments: national media and local media. The Company’s national media segment includes print magazines, digital and mobile media, brand licensing activities, affinity marketing, database-related activities, business-to-business marketing products, and other related operations. The local media segment includes 17 television stations and related digital and mobile media operations. Meredith’s operations are diversified geographically primarily within the United States (U.S.) but also abroad in a limited number of locations in Europe and Asia. The Company has a broad customer base. Basis of Presentation —The consolidated financial statements include the accounts of Meredith and its wholly-owned and majority-owned subsidiaries, after eliminating all significant intercompany balances and transactions. The results of operations include those of Time Inc. (Time) since the date of acquisition (the Acquisition). See Note 2 for further discussion. Meredith does not have any off-balance sheet arrangements. The Company’s use of special-purpose entities was limited to Meredith Funding Corporation, whose activities were fully consolidated in Meredith’s consolidated financial statements until the termination of its asset lending facility on January 31, 2018. The financial position and operating results of the Company’s foreign operations are consolidated using primarily the local currency as the functional currency. Local currency assets and liabilities are translated at the rates of exchange as of the balance sheet date, and local currency revenues and expenses are translated at average rates of exchange during the period. Translation gains or losses on assets and liabilities are included as a component of accumulated other comprehensive loss. Use of Estimates— The preparation of financial statements in conformity with accounting principles generally accepted in the United States of America (U.S. GAAP) requires management to make estimates and assumptions that affect the amounts reported in the consolidated financial statements. The Company bases its estimates on historical experience, management expectations for future performance, and other assumptions as appropriate. Key areas affected by estimates include the allowance for doubtful accounts, which is based on historical experience and management’s views on trends in the overall receivable aging, the assessment of the recoverability of long-lived assets, including goodwill and other intangible assets, which is based on such factors as estimated future cash flows; the determination of the net realizable value of broadcast rights, which is based on estimated future revenues; pension and postretirement benefit expenses, which are determined based, in large part, on actuarial assumptions regarding discount rates, expected returns on plan assets, and healthcare costs; and share-based compensation expense, which is based on numerous assumptions including future stock price volatility and employees’ expected exercise and post-vesting employment termination behavior. While the Company re-evaluates its estimates on an ongoing basis, actual results may vary from those estimates. Reclassifications —Certain prior years’ amounts have been reclassified to conform to fiscal 2019 presentation. Cash and Cash Equivalents —Cash and short-term investments with original maturities of 3 months or less are considered to be cash and cash equivalents. Cash and cash equivalents are stated at cost, which approximates fair value. Concentration of Credit Risk —Financial instruments that potentially subject the Company to concentrations of credit risk are primarily cash and cash equivalent deposits. Cash equivalent balances consist of money market mutual funds with original maturities of three months or less. These cash and cash equivalent deposits are maintained with several financial institutions. The deposits held at the various financial institutions may exceed federally insured limits. Exposure to this credit risk is reduced by placing such deposits with major financial institutions and monitoring their credit ratings and, therefore, these deposits bear minimal credit risk. There is also limited credit risk with respect to the money market mutual funds in which the Company invests as these funds all have issuers, guarantors, and/or other counterparties of reputable credit. At June 30, 2019 , $ 34.2 million of cash and cash equivalents were held domestically, of which $ 6.8 million were held in money market mutual funds. Of the total cash and cash equivalents, $10.8 million were held internationally, primarily in Europe. Cash equivalents at June 30, 2019 , were $ 9.7 million , which approximates fair value due to their short-term nature, and is considered a Level 1 measurement as defined in Note 10 . Accounts Receivable —The Company’s accounts receivable are primarily due from advertisers. Credit is extended to clients based on an evaluation of each client’s creditworthiness and financial condition; collateral is not required. The Company maintains allowances for uncollectible accounts, rebates, rate adjustments, returns, and discounts. The allowance for uncollectible accounts is based on the aging of such receivables and any known specific collectability exposures. Accounts are written off when deemed uncollectible. Allowances for rebates, rate adjustments, returns, and discounts are generally based on historical experience and current market conditions. Concentration of credit risk with respect to accounts receivable is generally limited due to the large number of geographically diverse clients and individually small balances. Inventories —Inventories are stated at the lower of cost or net realizable value. Effective January 1, 2018, the Company changed its method of accounting for paper inventory in the national media segment from the last-in, first-out (LIFO) method to the weighted average cost method. The Company believes that the weighted average cost method of accounting for paper inventory is preferable because it provides a better match of production costs with revenues considering the limited volatility in paper prices due to the short production cycle. The effect of the change was not considered material to the previously issued consolidated financial statements and, as such, was adopted prospectively as of January 1, 2018. The cumulative effect of the change recorded in the third quarter of fiscal 2018 was $1.3 million representing the removal of the LIFO costs reserve. This adjustment was recorded to the production, distribution, and editorial line within the Consolidated Statements of Earnings. Cost is determined on the first-in first-out or average basis for all other inventories. Subscription Acquisition Costs —Subscription acquisition costs primarily represent magazine agency commissions. These costs are deferred and amortized over the related subscription term, typically one to two years . In addition, direct-response advertising costs that are intended to solicit subscriptions and are expected to result in probable future benefits are capitalized. These costs are amortized over the period during which future benefits are expected to be received. The asset balance of the capitalized direct-response advertising costs is reviewed quarterly to ensure the amount is realizable. Any write-downs resulting from this review are expensed as subscription acquisition advertising costs in the current period. Capitalized direct-response advertising costs were $8.2 million at June 30, 2019 and $7.6 million at June 30, 2018 . There were no material write-downs of capitalized direct-response advertising costs in any of the fiscal years in the three -year period ended June 30, 2019 . Property, Plant, and Equipment —Property, plant, and equipment are stated at cost with the exception of the property, plant, and equipment that was recorded at estimated fair value as of January 31, 2018, as a result of the Acquisition. Additions to that acquired property, plant, and equipment since January 31, 2018, are stated at cost. Costs of replacements and major improvements are capitalized, while costs of maintenance and repairs are charged to operations as incurred. Depreciation expense is determined primarily using the straight-line method over the estimated useful lives of the assets: 5 - 45 years for buildings and improvements, 3 - 6 years for capitalized software, and 3 - 20 years for machinery and equipment. The costs of leasehold improvements are amortized over the lesser of the useful lives of the improvements or the terms of the respective leases. Depreciation and amortization of property, plant, and equipment was $92.5 million in fiscal 2019 , $54.2 million in fiscal 2018 , and $34.7 million in fiscal 2017 . Broadcast Rights —Broadcast rights consist principally of rights to broadcast syndicated programs, sports, and feature films. The total cost of these rights is recorded as an asset and as a liability when programs become available for broadcast. The current portion of broadcast rights represents those rights available for broadcast that are expected to be amortized in the succeeding year. These rights are valued at the lower of unamortized cost or estimated net realizable value, and are generally charged to operations on an accelerated basis over the contract period. Impairments of unamortized costs to net realizable value are included in production, distribution, and editorial expenses in the Consolidated Statements of Earnings. There were no material impairments of unamortized costs in fiscal years 2019 , 2018 , or 2017 . Future write-offs can vary based on changes in consumer viewing trends and the availability and costs of other programming. Intangible Assets and Goodwill —Amortizable intangible assets consist primarily of advertiser relationships, publisher relationships, network affiliation agreements, partner relationships, customer relationships, and retransmission agreements. Intangible assets with finite lives are amortized over their estimated useful lives. The useful life of an intangible asset is the period over which the asset is expected to contribute directly or indirectly to future cash flows. Network affiliation agreements are amortized over the period of time the agreements are expected to remain in place, assuming renewals without material modifications to the original terms and conditions (generally 25 to 40 years from the original acquisition date). Other intangible assets are amortized over their estimated useful lives, ranging from 1 to 10 years . Intangible assets with indefinite lives include trademarks and Federal Communications Commission (FCC) broadcast licenses. These licenses are granted for a term of up to eight years but are renewable if the Company provides at least an average level of service to its customers and complies with the applicable FCC rules and policies and the Communications Act of 1934. The Company has been successful in every one of its past license renewal requests and has incurred only minimal costs in the process. The Company expects the television broadcasting business to continue indefinitely; therefore, the cash flows from the broadcast licenses are also expected to continue indefinitely. The Company has acquired trademark brands that have been determined to have indefinite lives. Those assets are evaluated annually for impairment. The Company evaluates a number of factors to determine whether an indefinite life is appropriate, including the competitive environment, market share, brand history, and operating plans. In addition, when certain events or changes in operating conditions occur, an additional impairment assessment is performed, and indefinite-lived assets may be adjusted to a determinable life. Goodwill and intangible assets which have indefinite lives, are not amortized but are tested for impairment annually or when events occur or circumstances change that indicate the carrying value may exceed the fair value. Goodwill impairment testing is performed at the reporting unit level. The Company has two reporting units – national media, and local media. The Company also assesses, at least annually, whether assets classified as indefinite-lived intangible assets continue to have indefinite lives. The Company performs its goodwill impairment analysis annually as of May 31. At May 31, 2019 , the date the Company last performed its annual evaluation of impairment of goodwill, management elected to perform qualitative impairment tests for the local media reporting unit and a quantitative goodwill impairment test for the national media reporting unit. A quantitative impairment test, performed for a goodwill reporting unit or indefinite-lived intangible assets, involves determining the fair value of the reporting unit or asset which is then compared to its carrying value. Fair value to which carrying value is compared in the quantitative analysis is determined using a discounted cash flow model, which requires us to estimate the future cash flows expected to be generated by the reporting unit or to result from the use of the asset. These estimates include assumptions about future revenues (including projections of overall market growth and share of market), estimated costs, and appropriate discount rates where applicable. These assumptions are based on historical data, various internal estimates, and a variety of external sources and are consistent with the assumptions used in both short-term financial forecasts and long-term strategic plans. Depending on the assumptions and estimates used, future cash flow projections can vary within a range of outcomes. Changes in key assumptions used and their prospects or changes in market conditions could result in an impairment charge. Additional information regarding intangible assets and goodwill including a discussion of impairment charges taken on goodwill and other long-lived intangible assets is provided in Note 5 . Impairment of Long-lived Assets —Long-lived assets (primarily property, plant, and equipment and amortizable intangible assets) are reviewed for impairment whenever events and circumstances indicate the carrying value of an asset may not be recoverable. Recoverability is measured by comparison of the forecasted undiscounted cash flows of the operation to which the assets relate to the carrying amount of the assets. Tests for impairment or recoverability require significant management judgment, and future events affecting cash flows and market conditions could result in impairment losses. Derivative Financial Instruments —Meredith does not engage in derivative or hedging activities, except at times to hedge interest rate risk on debt. Prior to the Acquisition, Meredith held interest rate swaps designated and accounted for as cash flow hedges in accordance with Accounting Standards Codification (ASC) 815, Derivatives and Hedging. In connection with the repayment of the variable-rate private placement senior notes and bank term loans on January 31, 2018, as further described in Note 7 , the Company terminated these swaps. Refer to Note 7 for further discussion on the gain recognized on this termination. Prior to their termination, the effective portion of the change in the fair value of interest rate swaps was reported in other comprehensive income (loss). The gain or loss included in other comprehensive income (loss) was subsequently reclassified into net earnings on the same line in the Consolidated Statements of Earnings as the hedged item in the same period that the hedge transaction affected net earnings. There were no material gains or losses recognized in earnings for hedge ineffectiveness in fiscal 2018 or 2017. Revenue Recognition —The Company’s primary source of revenue is advertising related. Other sources include consumer related and other revenues. Advertising related revenues— Advertising related revenues are recognized when advertisements are published (defined as an issue’s on-sale date) or aired by the broadcasting station, net of provisions for estimated rebates, rate adjustments, and discounts. Barter revenues are included in advertising revenue and are also recognized when the advertisements are published or the commercials are broadcast. Barter advertising revenues and the offsetting expense are recognized at the fair value of the advertising surrendered, as determined by similar cash transactions. Barter advertising revenues were not material in any period. Digital advertising revenues are recognized ratably over the contract period or as services are delivered. Third party advertising revenues are recognized when the advertisement is run by the third parties, or a print product is placed on-sale. Consumer related revenues— Circulation revenues include magazine single copy and subscription revenue. Single copy revenue is recognized on the publication’s on-sale date, net of provisions for estimated returns. The Company bases its estimates for returns on historical experience and current marketplace conditions. Revenues from magazine subscriptions are deferred and recognized proportionately as products are distributed to subscribers. Brand licensing-based revenues are accrued generally monthly or quarterly based on the specific mechanisms of each contract. Payments are generally made by the Company’s partners on a quarterly basis. Generally, revenues are accrued based on estimated sales and adjusted as actual sales are reported by partners. These adjustments are typically recorded within three months of the initial estimates and have not been material. Any minimum guarantees are typically earned evenly over the fiscal year. Retransmission consent revenues are recognized over the contract period based on the negotiated fee and generally on a per subscriber basis. Revenues earned for placing magazines with subscribers on behalf of third-party publishers is recognized once the subscriber’s name is transferred to the publisher, on a net basis, with a reserve for estimated cancellations. Other revenues— Revenues from content creation and other custom programs are recognized when the products or services are delivered. In addition, the Company participates in certain arrangements containing multiple deliverables. The guidance for accounting for multiple-deliverable arrangements requires that overall arrangement consideration be allocated to each deliverable (unit of accounting) in the revenue arrangement based on the relative selling price as determined by vendor specific objective evidence, third-party evidence, or estimated selling price. The related revenue is recognized when each specific deliverable of the arrangement is delivered. In certain instances, revenues are recorded gross in accordance with U.S. GAAP although the Company receives cash for a lesser amount due to the netting of certain expenses. Amounts received from customers in advance of revenue recognition are deferred as liabilities and recognized as revenue in the period earned. Contingent Consideration —The Company estimates and records the acquisition date estimated fair value of contingent consideration as part of purchase price consideration for acquisitions. Additionally, each reporting period, the Company estimates changes in the fair value of contingent consideration, and any change in fair value is recognized in the Consolidated Statements of Earnings. An increase in the earn-out expected to be paid will result in a charge to operations in the quarter that the anticipated fair value of contingent consideration increases, while a decrease in the earn-out expected to be paid will result in a credit to operations in the quarter that the anticipated fair value of contingent consideration decreases. The estimate of the fair value of contingent consideration requires subjective assumptions to be made regarding future operating results, discount rates, and probabilities assigned to various potential operating result scenarios. Future revisions to these assumptions could materially change the estimate of the fair value of contingent consideration and, therefore, materially affect the Company’s future financial results. Additional information regarding contingent consideration is provided in Note 2 . Advertising Expenses —The majority of the Company’s advertising expenses relate to direct-mail costs for magazine subscription acquisition efforts. Advertising costs that are not capitalized are expensed the first time the advertising takes place. Total advertising expenses included in the Consolidated Statements of Earnings were $193.3 million in fiscal 2019 , $86.3 million in fiscal 2018 , and $63.5 million in fiscal 2017 . Deferred Financing Costs —Costs incurred to obtain financing are deferred and amortized to interest expense, net on the Consolidated Statements of Earnings over the related financing period using the effective interest method. The Company records deferred financing costs as a direct reduction of the carrying value of the related debt. Financing costs related to revolving debt instruments or lines of credit are included in other assets on the Consolidated Balance Sheets. Income Taxes —The income tax provision is calculated under the liability method. Deferred tax assets and liabilities are recognized for the future tax consequences attributable to differences between the financial statement carrying amounts of existing assets and liabilities and their respective tax basis and tax credit carryforwards. Deferred tax assets and liabilities are measured using enacted tax rates expected to apply to taxable income in the years in which those temporary differences are expected to be recovered or settled. The effect on deferred tax assets and liabilities of a change in tax rates is recognized in earnings in the period when such a change is enacted. The Company recognizes the effect of income tax positions only if those positions are more likely than not of being sustained. Recognized income tax positions are measured at the largest amount that is greater than 50 percent likely of being realized. Changes in recognition or measurement are reflected in the period in which the change in judgment occurs. Self-Insurance —The Company self-insures for certain medical claims, and its responsibility generally is capped through the use of a stop loss contract with an insurance company at a certain dollar level. The dollar level varies based on the insurance plan, and is generally $500 thousand . Third-party administrators are used to process claims. The Company uses actual claims data and estimates of claims incurred-but-not-reported to calculate estimated liabilities for unsettled claims on an undiscounted basis. Although management re-evaluates the assumptions and reviews the claims experience on an ongoing basis, actual claims paid could vary significantly from estimated claims. Pensions and Postretirement Benefits Other Than Pensions —Retirement benefits are provided to employees through pension plans sponsored by the Company. Pension benefits are generally based on formulas that reflect interest credits allocated to participants’ accounts based on years of benefit service and annual pensionable earnings. It is the Company’s policy to fund the qualified pension plans to at least the extent required to maintain their fully funded status. In addition, the Company provides health care and life insurance benefits for certain retired employees, the expected costs of which are accrued over the years that the employees render services. It is the Company’s policy to fund postretirement benefits as claims are paid. Additional information is provided in Note 12 . Share-based Compensation —The Company establishes fair value for its equity awards to determine their cost and recognizes the related expense over the appropriate vesting period. The Company recognizes expense for stock options, restricted stock, restricted stock units, and shares issued under the Company’s employee stock purchase plan. See Note 13 for additional information related to share-based compensation expense. Redeemable Preferred Stock —The Company has outstanding 650,000 shares of perpetual convertible redeemable non-voting preferred stock, par value $1.00 per share, each share having an initial stated value of $1,000 per share (the Series A preferred stock). Proceeds from the issuance were allocated on a relative fair value basis between the preferred stock and other freestanding financial instruments issued with the preferred stock. The preferred stock is classified as mezzanine equity and is accreted to its redemption value. Additional information is provided in Note 14 . Comprehensive Income —Comprehensive income consists of net earnings and other gains and losses affecting shareholders’ equity that, under U.S. GAAP, are excluded from net earnings. Other comprehensive income (loss) includes changes in prior service costs and net actuarial losses from pension and postretirement benefit plans, net of taxes; unrealized gains or losses resulting from foreign currency translation, net of taxes; and changes in the fair value of interest rate swap agreements, net of taxes, to the extent that they are effective. As of June 30, 2019 , there were no amounts in other comprehensive income (loss) related to the interest rate swaps as such were settled in fiscal 2018, and all previously unrealized changes in other comprehensive income (loss) were recognized in earnings. Refer to Note 7 for additional discussion on the swap termination. Earnings Per Share —Basic earnings per share is calculated by dividing net earnings attributable to common shareholders by the weighted average common and Class B shares outstanding for the period. Diluted earnings per share calculation incorporates the shares utilized in the basic calculation but also includes the dilutive effect, if any, of the assumed exercise or conversion of securities, including the effect of shares issuable under the Company’s share-based incentive plans. In connection with the issuance of the Series A preferred stock and detachable warrants on January 31, 2018, the Company now has a two-class capital structure and applies the two-class method in the calculation of earnings per share. The two-class method adjusts earnings to incorporate dividends declared on common stock, preferred stock, and other securities in distributed earnings. In addition, it also incorporates participating rights in other securities in undistributed earnings. Additional information is provided in Note 16 . Adopted Accounting Pronouncements — ASU 2014-09—In May 2014, the Financial Accounting Standards Board (FASB) issued Accounting Standards Update (ASU) 2014-09, Revenue from Contracts with Customers (Topic 606) (ASC 606) that updated and replaced existing revenue recognition guidance. The guidance includes a five-step framework to determine the timing and amount of revenue to recognize related to contracts with customers. Additionally, the guidance requires new and significantly enhanced disclosures about the nature, amount, timing, and uncertainty of revenue and cash flows from customer contracts as well as judgments made by a company when following the framework. The Company adopted the standard, including all updates made to the standard since original issuance, on July 1, 2018, using the modified retrospective method. The standard was applied to all contracts open as of July 1, 2018. The cumulative prior period effect of applying ASC 606 was $2.4 million , which resulted in an increase to retained earnings upon adoption. The standard does not change the timing or pattern of revenue recognition for most of the Company's revenue contracts with the exception of contracts with value-added items or those that require combination under the standard. Refer to Note 11 for further discussion on the impacts of the adoption of this accounting standard. The Company utilized various practical expedients offered by the guidance in our implementation. For the Company's contracts that have an original duration of twelve months or less, the Company does not impute interest to account for a financing element. For all contracts with an original term of twelve months or less and for performance obligations tied to sales-based or usage-based royalties, the Company has not disclosed the transaction price for the remaining performance obligations as of the end of each reporting period or when the Company expects to recognize this revenue. Finally, consistent with historical practice, the Company excludes amounts collected from customers for sales taxes from its transaction prices. ASU 2016-01—In January 2016, the FASB issued guidance to improve and simplify accounting for financial instruments. The updated guidance includes several provisions that are not applicable to the Company’s consolidated financial statements with the exception of changes to fair value disclosures. Under the new guidance, public entities are no longer required to disclose the methods and significant assumptions used to estimate fair value of financial instruments measured at amortized cost on the balance sheet. It also requires public entities to use the exit price when measuring the fair value of financial instruments for disclosure purposes. The guidance was adopted in the first quarter of fiscal 2019. The adoption of this guidance required a change in the Company's disclosures only and did not have an impact on the Company's financial position, results of operations, or cash flows. ASU 2016-15—In August 2016, the FASB issued an accounting standards update clarifying the classification of certain cash receipts and payments in the statement of cash flows. The update is intended to reduce the diversity in practice regarding how certain transactions are classified within the statement of cash flows. The update was effective beginning in the first quarter of fiscal 2019 and was adopted retrospectively as required by the ASU. As a result of the update, the Company reclassified a cash outflow of $0.8 million and $0.7 million for the years ended June 30, 2018 and 2017, respectively, from financing activities to operating activities related to contingent considerations paid in excess of that recognized as a liability on the date of acquisition. For the year ended June 30, 2018, the Company also reclassified a cash inflow of $0.7 million from operating activities to investing activities related to cash proceeds from corporate owned life insurance. The update is not expected to have a material impact on the classification of future cash flows. ASU 2017-01—In January 2017, the FASB issued an accounting standards update that clarifies the definition of a business and adds guidance to assist entities in the determination of whether an acquisition (or disposal) represents assets or a business. The update provides a test to determine whether or not an acquisition is a business. If substantially all of the fair value of the assets acquired is concentrated in a single asset or a group of similar identifiable assets, the acquired assets do not represent a business. If this test is not met, the update provides further guidance to evaluate if the acquisition represents a business. The Company prospectively adopted the guidance in the first quarter of fiscal 2019. The adoption did not have an impact to the Company’s consolidated financial statements. ASU 2017-07—In March 2017, the FASB issued an accounting standards update on the presentation of net periodic pension and postretirement benefit costs. This guidance revises how employers that sponsor defined benefit pension and other postretirement plans present the net periodic benefit costs in their income statement and requires that the service cost component of net periodic benefit costs be presented in the same line items as other employee compensation costs. The other components of net periodic benefit costs must be presented separately from the line items that include the service cost and outside of the income from operations subtotal. As required by the standard, the Company adopted the update on July 1, 2018, retrospectively to July 1, 2016, which resulted in an increase in production, distribution, and editorial expenses of $5.5 million ; a decrease in selling, general, and administrative expenses of $4.6 million ; and an increase in non-operating income, net of $0.9 million for the year ended June 30, 2017. For the year ended June 30, 2018, the adoption of this update resulted |
Acquisitions
Acquisitions | 12 Months Ended |
Jun. 30, 2019 | |
Business Combinations [Abstract] | |
Acquisitions | 2. Acquisitions Fiscal 2019 On February 28, 2019, Meredith acquired 100 percent of the membership interests in Linfield Media, LLC (Linfield Media), a marketing business focused on online savings and deals, for $16.6 million in cash. The results of Linfield Media have been included in the consolidated financial statements since that date. The following table summarizes the fair value of total consideration transferred and the recognized amounts of identifiable assets acquired and liabilities assumed for the national media segment during the year ended June 30, 2019: (In millions) Consideration Cash $ 16.6 Recognized amounts of identifiable assets acquired and liabilities assumed Total identifiable assets acquired $ 6.0 Total liabilities assumed — Total identified net assets 6.0 Goodwill 10.6 Net assets acquired $ 16.6 The following table provides details of the identifiable acquired intangible assets in the acquisition: (In millions) Intangible assets subject to amortization Partner relationships $ 3.2 Other 1.2 Total intangible assets $ 4.4 The useful life of the partnership relationships is 10 years , and other intangible assets' useful lives range between one year and six years . The goodwill is attributable primarily to expected synergies and the assembled workforces. Goodwill, with an assigned value of $10.6 million , is expected to be fully deductible for tax purposes. During fiscal 2019, there were $0.1 million acquisition related costs incurred. These costs are included in the acquisition, disposition, and restructuring related activities line in the Consolidated Statements of Earnings. Fiscal 2018 On January 31, 2018, Meredith completed its acquisition of all the outstanding shares of Time for $18.50 per share, for a total transaction value of $3.2 billion , including the repayment of Time’s outstanding debt. As part of the Acquisition, Meredith also repaid its outstanding debt. These transactions were funded through a combination of borrowings under the Company’s new $1.8 billion secured term loan facility, the issuance of $1.4 billion of senior unsecured notes, the issuance of preferred equity, and cash on hand (refer to Note 7 for additional information on the long-term debt and Note 14 for additional information on the preferred equity). In accordance with the merger agreement, certain of Time’s outstanding restricted stock units, performance stock units, and in-the-money stock options were immediately vested, converted into the right to receive $18.50 per share, and paid in cash. The value of these awards was apportioned between total purchase price consideration and immediate expense. This expense is included in the acquisition, disposition, and restructuring related activities line on the Consolidated Statements of Earnings. Additionally, certain of Time’s outstanding stock options and restricted stock units were converted into mirror awards exercisable or earned in Meredith common stock. The conversion was based on a ratio of $18.50 to the volume-weighted average per share closing price for Meredith’s stock on the ten consecutive trading days ended on the complete trading day immediately prior to the acquisition closing date. The value of these awards was apportioned between total purchase price consideration and unearned compensation to be recognized over the remaining original vesting periods of the awards. The following table summarizes the aggregate purchase price consideration paid to acquire Time: (In millions) Consideration paid to Time shareholders $ 1,860.7 Repayment of Time’s outstanding debt, including prepayment penalty 1,327.9 Cash consideration issued to settle outstanding share-based equity awards 37.6 Total cash consideration 3,226.2 Share-based equity awards issued to settle outstanding share-based equity awards 33.8 Total consideration issued 3,260.0 Portion of cash settlement of outstanding share-based equity awards recognized as expense (9.2 ) Portion of share-based equity awards issued to be recognized as an expense, primarily through fiscal 2021 (24.0 ) Total purchase price consideration $ 3,226.8 This transaction created a premier media and marketing company serving 175 million American consumers. At Acquisition close, the combined portfolio of brands had a readership of more than 120 million and paid circulation of more than 40 million . The acquisition also increased Meredith’s digital position with nearly 135 million monthly unique visitors in the U.S. While the majority of Time’s operations are reported in Meredith’s national media segment, one business unit of Time is reported in Meredith’s local media segment and certain expenses are reported in unallocated corporate. The Company accounted for this acquisition as a business combination under the acquisition method of accounting. The following table summarizes the purchase price allocation of fair values of the assets acquired and liabilities assumed at the date of acquisition. In fiscal 2019, the Company recorded purchase price allocation adjustments relating to the Time acquisition that increased goodwill by $24.6 million , reduced assets held-for-sale by $19.9 million and increased deferred income tax liabilities by $4.7 million . These adjustments resulted from new information about facts and circumstances that existed at the time of the acquisition. The measurement period is now closed. (In millions) Cash and cash equivalents $ 399.9 Accounts receivable 293.4 Inventory 22.8 Assets held-for-sale 962.2 Other current assets 60.5 Total current assets 1,738.8 Property, plant, and equipment 300.8 Other assets 98.0 Intangible assets 1,147.8 Total identifiable assets acquired 3,285.4 Accounts payable 140.3 Accrued liabilities 195.8 Current portion of unearned revenues 198.5 Liabilities associated with assets held-for-sale 305.5 Total current liabilities 840.1 Unearned revenues 45.0 Deferred income taxes 176.9 Other noncurrent liabilities 104.4 Total liabilities assumed 1,166.4 Total identified net assets 2,119.0 Goodwill 1,107.8 Net assets acquired $ 3,226.8 The gross contractual amount of trade receivables acquired was $360.3 million and the contractual amount not expected to be collected was $66.9 million at the acquisition date. The following table provides details of the identifiable acquired intangible assets: (In millions) Intangible assets subject to amortization Advertiser relationships $ 223.5 Publisher relationships 125.0 Partner relationships 95.0 Customer relationships 63.3 Total 506.8 Intangible assets not subject to amortization Trademarks 641.0 Intangible assets, net $ 1,147.8 The weighted average useful life of advertiser relationships is 3 years , publisher relationships is 7 years , partner relationships is 6 years , and customer relationships is 2 years . Goodwill is attributable primarily to expected synergies and the assembled workforces. Of total goodwill recorded of $1.1 billion , $93.6 million is expected to be deductible for income tax purposes. Transaction and integration costs incurred by Meredith were $59.9 million in fiscal 2018. These costs are included in the acquisition, disposition, and restructuring related activities line in the Consolidated Statements of Earnings. The following table presents the amounts of Time’s revenue and earnings included in Meredith’s Consolidated Statements of Earnings since the date of the acquisition for the years ended June 30, 2019 and 2018. As the Company continues to integrate Time, the ability to separately track Time-revenues and expenses, especially unallocated corporate expenses, becomes less feasible. As such, the Time revenues and expenses as presented below are limited to the combined results from the national media and local media segments and do not include discontinued operations, which are separately presented in Note 4 . Years ended June 30, 2018 (In millions except per share data) Time total revenues $ 625.3 Time net earnings (loss) from continuing operations before income tax (74.4 ) In preparing its condensed consolidated financial statements for the three and nine months ended March 31, 2019, the Company identified errors in the accounting for certain magazine subscriptions in prior periods beginning at the time of the acquisition of Time. The errors were due to the incorrect coding of certain magazine subscriptions by Time, which resulted in the subscriptions being recorded on a net basis instead of a gross basis in the Company's national media segment. As a result of these errors, consumer related revenue and selling, general, and administrative expense were understated on the Company's Consolidated Statements of Earnings and subscription acquisition costs and unearned revenues were understated on the Company's Consolidated Balance Sheets. As these errors also affected certain of the brands held-for-sale (see Note 4 ), assets held-for-sale and liabilities associated with assets held-for-sale were also understated on the Company's Consolidated Balance Sheets. Also, in the quarter ended March 31, 2019, the Company recorded an out-of-period adjustment to correct the impact on the opening Time balance sheet of these coding errors. The effect of the adjustment was to reduce selling, general, and administrative expenses by $10.0 million , and increase goodwill by $7.4 million and income tax expense by $2.6 million . In accordance with Staff Accounting Bulletin (SAB) No. 99, Materiality, the Company calculated the effect of these errors and determined that they were not material, individually or in the aggregate, to previously issued financial statements and, therefore, amendment of previously filed reports was not required. As permitted by SAB No. 108, Considering the Effects of Prior Year Misstatements when Quantifying Misstatements in Current Year Financial Statements , the Company corrected, in the third quarter of fiscal 2019, previously reported results. The amounts shown below differ from amounts reported in the third quarter of fiscal 2019 due to the reclassification of the Money brand from discontinued operations to continuing operations (See Note 4). In accordance with Accounting Standards Codification (ASC) 250, Accounting Changes and Error Corrections , the effect of the correction on each financial statement line item for each period affected is as follows: Consolidated Balance Sheet as of June 30, 2018 As Reported Adjustment As Adjusted (in millions) Current portion of subscription acquisition costs $ 118.3 $ 26.7 $ 145.0 Assets held-for-sale 708.0 11.8 719.8 Subscription acquisition costs 61.1 5.2 66.3 Current portion of unearned revenues 366.8 26.7 393.5 Liabilities associated with assets held-for-sale 188.2 11.8 200.0 Unearned revenues 127.1 5.2 132.3 Consolidated Statements of Earnings As Reported Adjustment As Adjusted (in millions) For the twelve months ended June 30, 2018 Consumer related revenue $ 912.3 $ 9.0 $ 921.3 Selling, general, and administrative expense 978.5 9.0 987.5 For the three months ended September 30, 2018 Consumer related revenue 303.6 12.5 316.1 Selling, general, and administrative expense 337.8 12.5 350.3 For the three months ended December 31, 2018 Consumer related revenue 342.6 15.7 358.3 Selling, general, and administrative expense 330.3 15.7 346.0 Fiscal 2017 On December 7, 2016, Meredith acquired the assets of a digital lead-generation company in the home services market, which has been rebranded Meredith Performance Marketing by the Company. The acquisition-date fair value of the consideration was $21.1 million , which consisted of $13.4 million of cash and $7.7 million of contingent consideration. The contingent consideration arrangement required the Company to make contingent payments based on the achievement of certain operational targets in fiscal 2017 and on financial performance during fiscal 2017 through fiscal 2021 measured in terms of earnings before interest, taxes, depreciation, and amortization (EBITDA) as defined in the acquisition agreement. The contingent consideration is not dependent on the continued employment of the sellers. The Company estimated the fair value of the contingent consideration using a probability-weighted discounted cash flow model. The fair value is based on significant inputs not observable in the market and thus represents a Level 3 measurement as defined in Note 10 . The Company paid no contingent consideration in fiscal 2018, and paid $2.6 million in contingent consideration in 2017. Although operating performance for the brand has been positive, revised projections in revenues resulted in lower projected EBITDA than anticipated at acquisition. Therefore, the Company recognized non-cash credits to operations of $3.8 million and $0.4 million in fiscal 2018 and 2017, respectively, to reduce the estimated contingent consideration payable. These credits are recorded in the selling, general, and administrative expense line on the Consolidated Statements of Earnings. A payment of $0.3 million was made during fiscal 2019 related to the fiscal 2018 EBITDA performance. As of June 30, 2019 , the Company estimates the future payments will range from $0.6 million to $1.1 million . Effective April 21, 2017, Meredith acquired WPCH-TV (Peachtree TV), which was operated by Meredith prior to its acquisition. The results of Peachtree TV’s operations have been included in the consolidated financial statements since that date. The cash purchase price was $70.0 million . For these acquisitions, goodwill is attributable primarily to expected synergies and the assembled workforces. Goodwill, with an assigned value of $24.3 million , is expected to be fully deductible for tax purposes. During fiscal 2017, acquisition related costs of $0.3 million were incurred. These costs are included in the acquisition, disposition, and restructuring related activities line in the Consolidated Statements of Earnings. Prior to Fiscal 2017 In February 2015, Meredith completed its acquisition of Shape. The acquisition agreement included a contingent consideration arrangement that required the Company to pay contingent payments based on certain financial targets over three fiscal years, primarily based on operating profit, as defined in the acquisition agreement. The final payment of $19.0 million was made during fiscal year 2019. On November 13, 2014, Meredith acquired Mywedding. The acquisition agreement included a contingent consideration arrangement that would require the Company to pay a contingent payment based on the achievement of certain financial targets. Due to the business having failed to achieve certain key targets, the Company reduced the value of the contingent consideration in fiscal 2017. In fiscal 2019, the Company reversed the remaining recorded contingency and as a result recognized a non-cash credit to operations of $5.1 million in the selling, general, and administrative expense line on the Consolidated Statements of Earnings. |
Inventories
Inventories | 12 Months Ended |
Jun. 30, 2019 | |
Inventory Disclosure [Abstract] | |
Inventories | 3. Inventories Inventories consist mainly of paper stock, editorial content, books, and other merchandise and are stated at the lower of cost or estimated net realizable value. Cost is determined using the first-in, first-out method for books and weighted average cost method for paper and other merchandise. Effective January 1, 2018, the Company prospectively changed its method of accounting for paper inventory from the last-in, first-out (LIFO) method to the weighted average cost method. LIFO inventory income included in the Consolidated Statements of Earnings was $1.3 million in fiscal 2018 and $1.7 million in fiscal 2017 . June 30, 2019 2018 (In millions) Raw materials $ 42.7 $ 32.3 Work in process 15.4 9.6 Finished goods 4.6 2.5 Inventories $ 62.7 $ 44.4 |
Assets Held-for-Sale, Discontin
Assets Held-for-Sale, Discontinued Operations, and Dispositions (Notes) | 12 Months Ended |
Jun. 30, 2019 | |
Discontinued Operations and Disposal Groups [Abstract] | |
Assets Held-for-Sale, Discontinued Operations, and Dispositions | 4. Assets Held-for-Sale, Discontinued Operations, and Dispositions Assets Held-for-Sale The Company classifies an asset as being held-for-sale when the following criteria are met: management has committed to a plan to sell the asset; the asset is available for immediate sale in its present condition; an active program to locate a buyer and other actions required to complete the plan to sell the asset have been initiated; the sale of the asset is probable, and transfer of the asset is expected to qualify for recognition as a completed sale within one year; the asset is being actively marketed for sale at a price that is reasonable in relation to its current fair value; and actions required to complete the plan indicate that it is unlikely that significant changes to the plan will be made or that the plan will be withdrawn. Long-lived assets that are classified as held-for-sale are recorded at the lower of carrying value or fair value less costs to sell, and are considered to be Level 3 measurements as defined in Note 10 . Fair value is preliminary and is expected to be finalized upon completion of the sales, which are expected to occur within calendar 2019. Property and equipment are not depreciated, and intangibles assets are not amortized once classified as held-for-sale. The assets and liabilities that are deemed held-for-sale are classified as current based on the anticipated disposal date. The following table presents the major components included in assets held-for-sale and liabilities associated with assets held-for-sale which include Sports Illustrated; FanSided, a Sports Illustrated affiliated brand that is being marketed separately from Sports Illustrated; and Viant Technology (Viant), as of June 30, 2019. The balances as of June 30, 2018, include TIME, Fortune, Sports Illustrated (including FanSided), and Viant: (in millions) June 30, 2019 2018 Current assets Cash and cash equivalents $ 5.1 $ 2.3 Accounts receivable, net 78.1 91.4 Inventories 0.1 0.9 Current portion of subscription acquisition costs 34.4 10.4 Other current assets 0.8 5.9 Total current assets 118.5 110.9 Net property, plant, and equipment 14.3 14.1 Subscription acquisition costs — 4.2 Other assets 20.2 1.0 Intangible assets, net 43.9 112.1 Goodwill 124.1 477.5 Total assets held-for-sale $ 321.0 $ 719.8 Current liabilities Accounts payable $ 45.2 $ 44.9 Accrued expenses and other liabilities 27.8 14.7 Current portion of unearned revenues 67.9 110.6 Deferred sale proceeds 73.2 — Total current liabilities 214.1 170.2 Unearned revenues 37.6 29.1 Other noncurrent liabilities 0.4 0.7 Total liabilities associated with assets held-for-sale $ 252.1 $ 200.0 Discontinued Operations A disposal of a component of an entity or a group of components of an entity is required to be reported as discontinued operations if the disposal represents a strategic shift that has (or will have) a major effect on an entity’s operations and financial results when the components of an entity meets the criteria to be classified as held-for-sale. When all of the criteria to be classified as held-for-sale are met, including management having the authority to approve the action and committing to a plan to sell the entity, the major assets and liabilities are to be reported as components of total assets and liabilities separate from those balances of the continuing operations. The Consolidated Statements of Earnings reported for current and prior periods shall report the results of operations of the discontinued operations, including any gain or loss recognized, in the period in which a discontinued operation either has been disposed of or is classified as held-for-sale. The results of all discontinued operations, less applicable income taxes (benefit), shall be reported as a component of net earnings separate from the net earnings from continuing operations. The Company announced after the Acquisition that it was exploring the sale of the TIME, Sports Illustrated (including FanSided), Fortune, and Money affiliated brands and its investment in Viant. Management originally expected those sales to close during calendar 2018. In accordance with accounting guidance, a business that, on acquisition, or within a short period following the acquisition (usually within three months), meets the criteria to be classified as held-for-sale is also considered a discontinued operation. As all of the required criteria for held-for-sale classification were met, the assets and liabilities related to these operations have been included as assets held-for-sale and liabilities associated with assets held-for-sale in the Consolidated Balance Sheets as of June 30, 2018. The required criteria for held-for-sale classification continued to be met at June 30, 2019, for Sports Illustrated, FanSided, and Viant and as such, the assets and liabilities related to these operations have been included as assets held-for-sale and liabilities associated with assets held-for-sale in the Consolidated Balance Sheets as of June 30, 2019. The revenue and expenses, along with associated taxes, for these operations, were included in the loss from discontinued operations, net of income taxes line on the Consolidated Statements of Earnings in fiscal 2019 and 2018. All discontinued operations relate to the national media segment. In April 2019, a decision was made to retain the Money brand. As this decision was made in the fourth quarter of fiscal 2019, the operations of the Money brand have been classified as continuing operations and the prior-year comparative periods have been recast to reflect Money as a continuing operation since the date of acquisition. On October 31, 2018, Meredith closed on the sale of the TIME brand to an unrelated third party for $190.0 million in cash. On December 21, 2018, Meredith closed on the sale of the Fortune brand to an unrelated third party for $150.0 million in cash. There was a gain of $2.1 million recognized on the sales. The results of TIME and Fortune were included in the loss from discontinued operations, net of income taxes line on the Consolidated Statements of Earnings until the date of sale. Meredith provided accounting, finance, human resources, information technology, and other similar support services for a period of time under Transition Services Agreements (TSA) with each buyer. Both TSAs were completed during fiscal 2019. In addition, Meredith continues to provide consumer marketing, subscription fulfillment, paper purchasing, printing, and other services under Outsourcing Agreements (OA) with each buyer. The services performed under the OAs have varying terms ranging from 1 to 5 years . Revenue of $4.8 million was earned from performing services under the OAs and is recorded in other revenue in the Consolidated Statements of Earnings for fiscal 2019. An $18.9 million reduction of selling, general, and administrative expenses was recorded for performing services under the TSAs in the Consolidated Statements of Earnings for fiscal 2019. In May 2019, the first step of a two-step transaction to sell Sports Illustrated was completed. At the time of first close, $90.0 million was received from the buyer. Simultaneously, the Company entered into an agreement to license back a portion of the Sports Illustrated brand to continue operating the publishing business. Although, under the agreement certain assets of the brand were sold for legal and tax purposes, because the Company retains control of the publishing business until the second close, the legal transfer of those assets has not been presented as a sale within the consolidated financial statements. At the time of the second close, Meredith will owe the buyer $11.6 million for accounts receivable and accounts payable retained by Meredith, and a working capital true-up estimated to be approximately $1.2 million (subject to adjustment). Based on the selling price of Sports Illustrated, an impairment of goodwill for the Sports Illustrated brand of $8.5 million was recognized during the fourth quarter of fiscal 2019. The agreement for the sale of Sports Illustrated includes an earn-out provision whereby the buyer would pay Meredith up to $20.0 million should certain revenue targets (as defined in the agreement) be achieved by the buyer by July 1, 2027. As receipt of such amounts is not deemed probable or estimable as of June 30, 2019, no receivable amount has been recorded as of June 30, 2019. No significant additional gain or loss is expected upon the second close, which is anticipated to occur in September 2019. Meredith expects to enter into a TSA with the buyer upon second close. Prior to the Acquisition, Time entered into an agreement to sell the Golf brand. This sale closed in February 2018. Revenue and expenses from the date of the acquisition until disposal along with associated taxes for the Golf brand were included in the loss from discontinued operations, net of income taxes line on the Consolidated Statements of Earnings. In February 2018, the Company entered into an agreement to sell Time Inc. (UK) Ltd (TIUK), a United Kingdom (U.K.) multi-platform publisher with approximately 60 brands. The sale closed in March 2018. Revenue and expenses from the date of acquisition until disposal along with associated taxes for TIUK were included in the loss from discontinued operations, net of income taxes line on the Consolidated Statements of Earnings. In connection with the sale of TIUK, a liability of $9.2 million was recorded in other liabilities in connection with a lease guarantee by Time. The guarantee is related to a lease of office space by TIUK in the U.K. through December 31, 2025. The carrying value of the lease guarantee was $8.0 million and $8.7 million at June 30, 2019 and 2018, respectively. The Company is only obligated to pay for the lease guarantee in the event that TIUK fails to perform under the lease agreement. If TIUK fails to perform under the lease agreement, the maximum lease guarantee obligation for which the Company would be liable is approximately $66.9 million as of June 30, 2019 . The Company has assessed that it is unlikely that TIUK will not perform its obligations under the lease. The Company does not allocate interest to discontinued operations unless the interest is directly attributable to the discontinued operations or is interest on debt that is required to be repaid as a result of the disposal transaction. Interest expense included in discontinued operations reflects an estimate of interest expense related to the debt that has been or is expected to be repaid with the proceeds from the sale of TIME, Fortune, Sports Illustrated, FanSided, and Viant. Amounts applicable to discontinued operations in the Consolidated Statements of Earnings are as follows: Years ended June 30, 2019 2018 (In millions except per share data) Revenues $ 423.4 $ 253.8 Costs and expenses (408.5 ) (242.7 ) Impairment of goodwill (8.5 ) — Interest expense (21.4 ) (11.9 ) Gain (loss) on disposal 2.1 (12.3 ) Loss before income taxes (12.9 ) (13.1 ) Income tax expense (69.9 ) (1.5 ) Loss from discontinued operations, net of income taxes $ (82.8 ) $ (14.6 ) Loss per share from discontinued operations Basic $ (1.83 ) $ (0.32 ) Diluted (1.82 ) (0.32 ) The discontinued operations did not have depreciation, amortization, or significant non-cash investing items for the years ended June 30, 2019 and 2018. Share-based compensation expense related to discontinued operations of $0.5 million and $3.7 million is included in the calculation of net cash provided by operating activities in the Consolidated Statements of Cash Flows for June 30, 2019 and 2018, respectively. Dispositions On July 1, 2017, Meredith's national media segment sold a 70 percent interest in Charleston Tennis LLC, which operates the Family Circle Tennis Center, to an unrelated third party. In return, Meredith received $0.6 million in cash and a note receivable for $8.5 million . The note receivable was due in annual installments over a period of 8 years . At June 30, 2018, there was $3.2 million in unamortized discount and an allowance of $3.0 million recorded against the note. This transaction generated a gain of $3.3 million , which was recorded in acquisition, disposition, and restructuring related activities in the Consolidated Statements of Earnings. Of this gain, $1.0 million related to the remeasurement of the retained investment. As Meredith retained a 30 percent interest, had a seat on the board, and had approval rights over certain limited matters, Meredith accounted for this investment under the equity method of accounting. In September 2018, Meredith sold its remaining 30 percent interest in Charleston Tennis LLC to an unrelated third party. In return, Meredith received cash of $13.3 million , of which $5.1 million was for the Company's remaining 30 percent interest and $8.2 million was repayment of the principal and interest accrued on the note receivable recorded upon the Company's sale of its 70 percent interest in July 2017. The Company recognized a gain on the sale of $10.4 million , of which $4.1 million represented a gain on the Company's 30 percent interest and is recorded in non-operating income, net in the Consolidated Statements of Earnings, while the remainder is recorded in acquisition, disposition, and restructuring related activities in the Consolidated Statements of Earnings, as such represents recovery of a previously impaired note receivable. In March 2018, the Company announced an agreement to sell Meredith Xcelerated Marketing (MXM). This transaction closed in May 2018. The Company did not report the operations of MXM as discontinued operations as the sale does not represent a strategic shift that will have a major effect on the Company’s operations and financial results. The results of MXM, as well as the gain of $11.5 million on the sale, which is included as a credit in the acquisition, disposition, and restructuring related activities line, are included within continuing operations in the Consolidated Statements of Earnings. A loss of $0.8 million and a profit of $11.2 million were included in earnings from continuing operations before income taxes related to MXM for the years ended June 30, 2018 and 2017, respectively. |
Intangible Assets and Goodwill
Intangible Assets and Goodwill | 12 Months Ended |
Jun. 30, 2019 | |
Goodwill and Intangible Assets Disclosure [Abstract] | |
Intangible Assets and Goodwill | 5. Intangible Assets and Goodwill Intangible assets consist of the following : June 30, 2019 2018 (In millions) Gross Amount Accumulated Amortization Net Amount Gross Amount Accumulated Amortization Net Amount Intangible assets subject to amortization National media Advertiser relationships $ 213.3 $ (102.0 ) $ 111.3 $ 212.3 $ (41.1 ) $ 171.2 Publisher relationships 125.0 (25.4 ) 99.6 125.0 (7.4 ) 117.6 Partner relationships 98.2 (22.7 ) 75.5 95.0 (6.6 ) 88.4 Customer lists 67.5 (46.3 ) 21.2 67.5 (14.0 ) 53.5 Other 23.2 (14.9 ) 8.3 22.0 (11.9 ) 10.1 Local media Network 229.3 (155.1 ) 74.2 229.3 (148.6 ) 80.7 Advertiser relationships 12.5 (5.8 ) 6.7 25.0 (3.5 ) 21.5 Retransmission agreements 27.9 (19.1 ) 8.8 27.9 (14.9 ) 13.0 Other 1.7 (1.2 ) 0.5 1.7 (0.8 ) 0.9 Total $ 798.6 $ (392.5 ) 406.1 $ 805.7 $ (248.8 ) 556.9 Intangible assets not subject to amortization National media Trademarks 724.5 766.3 Internet domain names 7.8 7.8 Local media FCC licenses 675.2 675.2 Total 1,407.5 1,449.3 Intangible assets, net $ 1,813.6 $ 2,006.2 Amortization expense was $155.1 million in fiscal 2019 , $74.8 million in fiscal 2018 , and $19.1 million in fiscal 2017 . Future amortization expense for intangible assets is expected to be as follows: $140.8 million in fiscal 2020 , $84.2 million in fiscal 2021 , $41.4 million in fiscal 2022 , $39.6 million in fiscal 2023 , and $32.5 million in fiscal 2024 . Actual future amortization expense could differ from these estimates as a result of future acquisitions, dispositions, and other factors. During the Company’s annual impairment tests performed as of May 31, 2019 , it identified several impaired trademarks. As a result, the national media segment recorded a non-cash impairment charge of $41.8 million to fully impair the Money and Coastal Living brand trademarks and to partially impair the Shape and Family Circle brand trademarks. The Company’s decision to discontinue the print publication of Money and transition Coastal Living from a subscription magazine to a newsstand only title resulted in the impairment of these trademarks. The lack of sales growth resulted in the carrying value of the trademarks for the Shape and Family Circle brands to exceed their fair values. The fair values of the trademarks are determined based on significant inputs not observable in the market. These charges were recorded in the impairment of long-lived assets line in the Consolidated Statements of Earnings. No other impairments of indefinite-lived intangible assets were recorded as a result of the Company’s fiscal 2019 annual impairment tests. During fiscal 2018 , Meredith made the strategic decision to no longer publish Fit Pregnancy and Baby magazine as a standalone title, rather to include it as a feature within Parents magazine and to discontinue FamilyFun as a subscription title and instead publish it only for sale on newsstand. These decisions were determined to be triggering events requiring Meredith to evaluate the trademarks within the Company’s Parents Network for impairment. The reduction in advertising revenue caused by the discontinuation of Fit Pregnancy and Baby and the change in FamilyFun to a newsstand only title, as well as updated revenue projections for the Parents Network resulted in an impairment of the trademarks. As such, during fiscal 2018 , the national media segment recorded a non-cash impairment charge of $22.7 million to partially impair the trademarks within the Company’s Parents Network. This impairment charge was recorded in the impairment of long-lived assets line in the Consolidated Statements of Earnings. No other impairments of indefinite-lived intangible assets were recorded as a result of the Company’s annual impairment tests performed as of May 31, 2018 . Due to continued weakness in the Mywedding.com revenue forecasts and a lack of sales growth from brand support efforts, the annual impairment analysis performed as of May 31, 2017, of the Mywedding trademark indicated an impairment. As such, during fiscal 2017 , the national media segment recorded a non-cash impairment charge of $5.3 million to fully impair the Mywedding trademark. No other impairments of indefinite-lived intangible assets were recorded as a result of the Company’s annual impairment tests performed as of May 31, 2017 . Changes in the carrying amount of goodwill were as follows: (In millions) National Local Total Balance at June 30, 2017 Goodwill $ 943.8 $ 80.6 $ 1,024.4 Accumulated impairment losses (116.9 ) — (116.9 ) 826.9 80.6 907.5 Acquisitions 1,028.0 35.2 1,063.2 Disposals 1 (54.9 ) — (54.9 ) Balance at June 30, 2018 Goodwill 1,800.0 115.8 1,915.8 Accumulated impairment losses — — — 1,800.0 115.8 1,915.8 Acquisitions 10.6 0.8 11.4 Acquisition adjustments 52.2 — 52.2 Balance at June 30, 2019 Goodwill 1,862.8 116.6 1,979.4 Accumulated impairment losses — — — $ 1,862.8 $ 116.6 $ 1,979.4 1 In connection with the sale of MXM, goodwill was reduced by $171.8 million and accumulated During fiscal 2017, the Company’s goodwill reporting units were national media magazine brands, MXM, and local media. Due to the sale of MXM and acquisition of Time in fiscal 2018, the Company’s reporting units were national media, local media excluding MNI, and MNI. With changes in the discrete financial information presented to the Chief Operating Decision Maker, during fiscal 2019 the Company’s reporting units were national media and local media. No reallocation of existing goodwill was required as a result of the change in reporting units as the goodwill attributable to MNI from the acquisition of Time is within our local media operating segment. For fiscal 2019 and fiscal 2018 , the Company performed its annual impairment review for the national media reporting unit as of May 31 using a quantitative goodwill impairment test. Based on the results of the analyses, the fair value exceeded the carrying value and thus resulted in no indication of impairment for fiscal 2019 or fiscal 2018 . For fiscal 2019 , the local media reporting unit performed qualitative assessment as of its measurement date of May 31, 2019, which indicated no impairment. For fiscal 2018 , the local media reporting unit excluding MNI and the MNI reporting unit performed qualitative assessments that did not indicate impairment for either reporting unit. With no indications of impairment, quantitative goodwill impairment analyses for fiscal 2019 and fiscal 2018 were not deemed necessary. In fiscal 2017, the Company performed its annual goodwill impairment analysis on the magazine brands, MXM, and local media reporting units as of May 31, 2017 . No impairments were recorded as a result of these reviews. |
Restructuring Accruals
Restructuring Accruals | 12 Months Ended |
Jun. 30, 2019 | |
Restructuring and Related Activities [Abstract] | |
Restructuring Accruals | 6. Restructuring Accruals During fiscal 2019, management committed to several performance improvement plans related primarily to business realignments, including continuing those related to the integration of Time that began in fiscal 2018. Improvement plans that were made and executed upon during fiscal 2019 related to the strategic decision to merge Cooking Light magazine with EatingWell , transition Coastal Living from a subscription magazine to a special interest publication, to change Entertainment Weekly from a weekly to a monthly publication, to consolidate much of the local media's digital advertising functions with MNI Targeted Media, and to outsource newsstand sales and marketing operations. During fiscal 2019, the Company also incurred restructuring costs related to the consolidation of office space including closing the Time Customer Service facility in Tampa, Florida and other office locations in Brooklyn, New York and Birmingham, Alabama. The fiscal 2019 performance improvement plans affected approximately 300 people, approximately 225 in the national media segment, approximately 25 in the local media segment, and the remainder in unallocated corporate. In connection with these plans, the Company recorded a pre-tax restructuring charge of $56.3 million for severance and related benefit costs related to the involuntary termination of employees and other write-downs of $31.1 million , mainly related to the closing of office locations in Tampa, Brooklyn, and Birmingham, which are recorded in the acquisition, disposition, and restructuring related activities line of the Consolidated Statements of Earnings. The majority of the severance costs are expected to be paid out over a 12-month period. Details of the severance and related benefit costs by segment for the performance improvement plans are as follows: Amount Accrued in the Period Total Amount Expected to be Incurred Years ended June 30, 2019 2018 (in millions) National media $ 39.2 $ 51.5 $ 39.6 Local media 2.0 0.9 2.0 Unallocated corporate 15.1 52.5 15.1 $ 56.3 $ 104.9 $ 56.7 During fiscal 2018, management committed to and executed upon several performance improvement plans, including those related to the integration of Time as well as other smaller restructurings. As part of the Company’s plan to realize cost synergies from the Acquisition, management committed to a performance improvement plan to reduce headcount. In addition to the Acquisition related plan, smaller performance improvement plans took place during the year that were related to the strategic decisions to no longer publish Fit Pregnancy and Baby magazine as a standalone title, but instead to include it as a feature within Parents magazine, and to no longer publish FamilyFun and Martha Stewart Weddings as subscription titles, but rather to sell them on the newsstand as special interest publications. The fiscal 2018 performance improvement plans affected approximately 1,800 employees, primarily in the national media and unallocated corporate departments. In connection with these plans, the Company recorded a pre-tax restructuring charge of $104.9 million for severance and related benefit costs related to the involuntary termination of employees and other write-downs of $0.5 million , which are recorded in the acquisition, disposition, and restructuring related activities line of the Consolidated Statements of Earnings. The majority of severance costs have been paid out. During fiscal 2017, management committed to several performance improvement plans related primarily to business realignments. These actions resulted in selected workforce reductions. In connection with these plans, the Company recorded pre-tax restructuring charges totaling $12.4 million including $11.9 million for severance and related benefit costs related to the involuntary termination of employees and other accruals of $0.3 million . The severance costs have been paid out. The plans affected approximately 215 employees. The Company also wrote down manuscript and art inventory by $0.2 million . These costs and expenses are recorded in the acquisition, disposition, and restructuring related activities line of the Consolidated Statements of Earnings. During the years ended June 30, 2019 , 2018 , and 2017 , the Company recorded reversals of $6.0 million , $0.8 million , and $1.8 million , respectively, of excess restructuring reserves accrued in prior fiscal years. The reversals of excess restructuring reserves are recorded as a credit in the acquisition, disposition, and restructuring related activities line of the Consolidated Statements of Earnings. Details of changes in the Company’s restructuring accrual are as follows: Years ended June 30, 2019 2018 (in millions) Employee Terminations Other Exit Costs Total Employee Terminations Other Exit Costs Total Balance at beginning of year $ 101.3 $ 6.3 $ 107.6 $ 8.7 $ — $ 8.7 Accrual on Time’s opening balance sheet — — — 38.5 6.6 45.1 Accruals 56.3 31.1 87.4 104.9 1.4 106.3 Cash payments (109.5 ) (13.0 ) (122.5 ) (49.9 ) (1.7 ) (51.6 ) Other accruals — — — (0.1 ) — (0.1 ) Reversal of excess accrual (4.4 ) (1.6 ) (6.0 ) (0.8 ) — (0.8 ) Balance at end of year $ 43.7 $ 22.8 $ 66.5 $ 101.3 $ 6.3 $ 107.6 As of June 30, 2019 , of the $66.5 million liability, $48.4 million was classified as current liabilities on the Consolidated Balance Sheets, with the remaining $18.1 million classified as noncurrent liabilities. Amounts classified as noncurrent liabilities are expected to be paid through 2031 and relate primarily to lease payments for space that has been vacated. |
Long-term Debt
Long-term Debt | 12 Months Ended |
Jun. 30, 2019 | |
Debt Disclosure [Abstract] | |
Long-term Debt | 7. Long-term Debt Long-term debt consists of the following: June 30, 2019 (In millions) Principal Balance Unamortized Discount and Debt Issuance Costs Carrying Variable-rate credit facility Senior credit facility term loan, due 1/31/2025 $ 1,062.5 $ (15.6 ) $ 1,046.9 Revolving credit facility of $350 million, due 1/31/2023 35.0 — 35.0 Senior Unsecured Notes 6.875% senior notes, due 2/1/2026 1,272.9 (21.5 ) 1,251.4 Total long-term debt 2,370.4 (37.1 ) 2,333.3 Current portion of long-term debt — — — Long-term debt $ 2,370.4 $ (37.1 ) $ 2,333.3 June 30, 2018 (In millions) Principal Balance Unamortized Discount and Debt Issuance Costs Carrying Variable-rate credit facility Senior credit facility term loan, due 1/31/2025 $ 1,795.5 $ (33.4 ) $ 1,762.1 Revolving credit facility of $350 million, due 1/31/2023 — — — Senior Unsecured Notes 6.875% senior notes, due 2/1/2026 1,400.0 (26.5 ) 1,373.5 Total long-term debt 3,195.5 (59.9 ) 3,135.6 Current portion of long-term debt (18.0 ) 0.3 (17.7 ) Long-term debt $ 3,177.5 $ (59.6 ) $ 3,117.9 In connection with the Acquisition, in January 2018, the Company repaid and terminated its existing indebtedness. Meredith recognized a loss on extinguishment of debt of $2.2 million related to this termination. Additionally, with the repayment of debt, the Company settled the associated interest rate swap agreements and recognized a gain on the settlement of $1.6 million . The loss on extinguishment of debt and gain on the settlement of the swaps recorded during fiscal 2018 are both presented in the interest expense, net line in the Consolidated Statements of Earnings. Also, in connection with the Acquisition, in January 2018, the Company entered into new credit arrangements with a total capacity of $3.6 billion comprised of a variable-rate credit facility and senior unsecured notes. The variable-rate credit facility includes a secured term loan (Term Loan B) with $1.8 billion of original aggregate principal and a 5 -year senior secured revolving credit facility of $350.0 million , of which $175.0 million is available for the issuance of letters of credit and $35.0 million of swingline loans. On June 30, 2019, there was $35.0 million of borrowings outstanding under the revolving credit facility. In addition, there were $3.6 million of standby letters of credit issued under the revolving credit facility resulting in availability of $311.4 million at June 30, 2019. The Term Loan B matures in 2025 and originally amortized at 1.0 percent per annum in equal quarterly installments until the final maturity date, at which time the remaining principal and interest are due and payable. However, as $200.0 million was paid on the Term Loan B in the first quarter of fiscal 2019, there are no future amortization requirements under the credit agreement. The senior unsecured notes had an aggregate original principal balance of $1.4 billion maturing in 2026 (2026 Senior Notes) with an interest rate of 6.875 percent per annum. Total outstanding principal is due at the final maturity date. Principal payments on debt due in the succeeding fiscal years include $35.0 million due in fiscal 2023, $1.1 billion due in fiscal 2025, and $1.3 billion due in fiscal 2026. The original interest rate under the Term Loan B was based on the London Interbank Offered Rate (LIBOR) plus a spread of 3.0 percent . The Company repriced the Term Loan B effective October 26, 2018. The new interest rate under the Term Loan B is based on LIBOR plus a spread of 2.75 percent as of the repricing date until maturity or when the Company's leverage ratio drops below 2.25 to 1 , at which time the spread will decrease to 2.5 percent . The revolving credit facility bears interest at LIBOR plus a spread ranging from 2.5 percent to 3.0 percent . The Term Loan B bore interest at a rate of 5.15 percent at June 30, 2019. The revolving credit facility has a commitment fee ranging from 0.375 percent to 0.500 percent of the unused commitment. All interest rates and commitment fees associated with this variable-rate revolving credit facility are derived from a leverage-based pricing grid. The accounting for the repricing of the Term Loan B was evaluated on a creditor-by-creditor basis to determine whether the transaction should be accounted for as a modification or extinguishment. Certain creditors chose not to participate in the repricing and ceased being creditors of the Company. As a result of these extinguishments, the Company recorded a debt extinguishment loss of $2.1 million in the second quarter of fiscal 2019 to write off the pro-rata amount of unamortized debt discount and deferred issuance costs related to these creditors. For the remainder of the creditors, this transaction was accounted for as a modification because on a creditor-by-creditor basis, the difference between the present value of the cash flows to those creditors before and after the repricing was less than 10 percent . Payments totaling $733.0 million were made on the Term Loan B during fiscal 2019. In addition to the Term Loan B repayments, the Company repurchased $127.1 million of its 2026 Senior Notes. These payments were all made in advance of scheduled maturities and thus were considered extinguishments of the debt. Therefore, as a result of these prepayments, extinguishment losses of $18.4 million were recognized during fiscal 2019. The extinguishment loss included a premium paid on the repurchase of the 2026 Senior Notes of $1.8 million . Of the total debt extinguishment loss of $18.4 million incurred during fiscal 2019, $10.9 million was recorded in interest expense, net and the remaining $7.5 million was recorded in loss from discontinued operations, net of income taxes in the Consolidated Statements of Earnings. The portion of the extinguishment loss that was recorded in the loss from discontinued operations, net of income taxes line was related to debt repaid with the proceeds from the sale of assets held-for-sale. Refer to Note 4 for further discussion. In fiscal 2018, the Company incurred $14.7 million of deferred financing costs and $56.0 million of discount costs that are being amortized into interest expense over the lives of the respective facilities. The Company also incurred a $17.5 million bridge loan commitment fee. The fee is presented in the interest expense, net line in the Consolidated Statements of Earnings. Interest expense related to long-term debt and the amortization of the associated debt issuance costs totaled $196.1 million in fiscal 2019 , $92.9 million in fiscal 2018 , and $18.8 million in fiscal 2017 . As further discussed in Note 4 , a portion of interest expense and amortization of debt issuance costs related to long-term debt is recorded in the loss from discontinued operations, net of income taxes line in the Consolidated Statements of Earnings. |
Income Taxes
Income Taxes | 12 Months Ended |
Jun. 30, 2019 | |
Income Tax Disclosure [Abstract] | |
Income Taxes | 8. Income Taxes Income taxes are recognized for the amount of taxes payable for the current year and for the impact of deferred tax assets and liabilities, which represent future tax consequences of events that have been recognized differently in the financial statements than for tax purposes. Deferred tax assets and liabilities are established using the enacted statutory tax rates and are adjusted for any changes in such rates in the period of change. On December 22, 2017, the U.S. government enacted comprehensive tax legislation commonly referred to as the Tax Reform Act. The Tax Reform Act made broad and complex changes to the U.S. tax code that affected our fiscal year ended June 30, 2018, including, but not limited to, (1) reducing the U.S. federal corporate tax rate, (2) bonus depreciation that allows for full expensing of qualified property and (3) limitations on the deductibility of interest expense and certain executive compensation and (4) a one-time transition tax on certain unrepatriated earnings of foreign subsidiaries. The Tax Reform Act reduced the federal corporate tax rate to 21 percent in the fiscal year ended June 30, 2018. As the Company has a June 30 fiscal year-end, the lower corporate income tax rate was phased in. Pursuant to Section 15 of the Internal Revenue Code, the Company applied a blended corporate tax rate of 28.1 percent for fiscal 2018, which was based on the applicable tax rates before and after the Tax Reform Act and the number of days in the year, and 21 percent for subsequent fiscal years. In connection with our initial analysis of the impact of the Tax Reform Act, we recorded a provisional net tax benefit of $133.0 million for the year ended June 30, 2018. This net benefit primarily consists of a benefit for the corporate rate reduction. As the Company was projecting a net operating loss for the fiscal year ended June 30, 2018, deferred tax assets and liabilities expected to be recognized in the fiscal year ended June 30, 2018, were remeasured using the 21 percent U.S. corporate tax rate. Due to our limited international operations, the impact of the transitional tax was immaterial. The transitional impact was finalized during the fiscal year ended June 30, 2019, with no significant impact on income tax expense. Beginning with the fiscal year ended June 30, 2019, a 21 percent rate federal rate is applicable for the full year and future years until additional legislation is enacted. Any legislative changes, as well as any other new or proposed Treasury regulations to address questions that arise because of the Tax Reform Act, may result in additional income tax impacts which could be material in the period any such changes are enacted. Effective July 1, 2017, the Company adopted new accounting guidance related to share-based compensation. Under this new guidance, excess tax benefits and deficiencies are to be recognized as a discrete component of the income tax provision in the period they occur and not as an adjustment to additional paid-in capital. As such, the Company recognized an excess tax benefit of $2.2 million as a credit to income tax expense in the Consolidated Statements of Earnings in fiscal 2018. The following table shows income tax expense (benefit) attributable to earnings (loss) from continuing operations before income taxes: Years ended June 30, 2019 2018 2017 (In millions) Current Federal $ (29.8 ) $ 1.8 $ 62.2 State (2.8 ) 1.2 0.4 Foreign 0.6 0.2 — (32.0 ) 3.2 62.6 Deferred Federal 42.0 (129.9 ) 33.0 State 1.6 3.2 5.8 Foreign (0.1 ) (0.1 ) — 43.5 (126.8 ) 38.8 Income tax expense (benefit) $ 11.5 $ (123.6 ) $ 101.4 The differences between the statutory U.S. federal income tax rate and the effective tax rate were as follows: Years ended June 30, 2019 2018 2017 U.S. statutory tax rate 21.0 % 28.1 % 35.0 % State income taxes, less federal income tax benefits (0.7 ) 27.8 3.0 Foreign operations (13.3 ) (74.2 ) — Rate change (0.1 ) 1,312.5 — Settlements - audits / tax litigation (2.5 ) 10.4 (2.3 ) Sale of domestic subsidiary — 67.3 — Nondeductible compensation 3.7 (176.4 ) 0.3 Other 0.1 86.9 (1.1 ) Effective income tax rate 8.2 % 1,282.4 % 34.9 % The Company’s effective tax rate was 8.2 percent in fiscal 2019 , 1,282.4 percent in fiscal 2018 , and 34.9 percent in fiscal 2017 . The fiscal 2019 effective tax rate was primarily impacted by a credit to income taxes of $23.5 million related to the write-off of worthless stock and related bad debt. The fiscal 2018 effective tax rate was primarily impacted by a credit to income taxes of $133.0 million related to tax reform. The fiscal 2017 effective tax rate was primarily impacted by a credit to income taxes of $4.4 million related to the resolution of certain federal and state tax uncertainties recorded in fiscal 2017. The tax effects of temporary differences that gave rise to deferred tax assets and deferred tax liabilities were as follows: June 30, 2019 2018 (In millions) Deferred tax assets Accounts receivable allowances and return reserves $ 19.3 $ 6.8 Compensation and benefits 29.6 44.0 Indirect benefit of uncertain state and foreign tax positions 6.8 6.4 Investment in foreign subsidiary — 62.1 Investment in partnerships 15.4 8.4 Tax loss carryforwards 57.7 127.8 Accelerated gains from dispositions 18.2 — All other assets 16.9 8.8 Total deferred tax assets 163.9 264.3 Valuation allowance (21.7 ) (21.1 ) Net deferred tax assets 142.2 243.2 Deferred tax liabilities Subscription acquisition costs 66.9 43.4 Accumulated depreciation and amortization 559.2 612.0 Deferred gains from dispositions 15.8 15.7 All other liabilities 4.9 4.6 Total deferred tax liabilities 646.8 675.7 Net deferred tax liability $ 504.6 $ 432.5 The Company has $56.1 million of net operating loss carryforwards for federal purposes and $161.6 million for state purposes, which, if unused, have expiration dates through fiscal 2038. It is expected that all federal net operating loss carryforwards will be utilized prior to expiration. There was an increase in the valuation allowance of approximately $0.6 million during the fiscal 2019, which was related primarily to foreign and state net operating losses. A reconciliation of the beginning and ending balances of the total amounts of gross unrecognized tax benefits is as follows: Years ended June 30, 2019 2018 (In millions) Balance at beginning of year $ 60.2 $ 29.5 Increase in positions acquired in business combination — 31.9 Increases in tax positions for prior years 0.2 0.4 Decreases in tax positions for prior years (0.7 ) — Increases in tax positions for current year 0.6 5.6 Settlements (0.1 ) (4.2 ) Lapse in statute of limitations (6.5 ) (3.0 ) Balance at end of year $ 53.7 $ 60.2 The total amount of unrecognized tax benefits that, if recognized, would impact the effective tax rate was $44.5 million as of June 30, 2019 , and $49.7 million as of June 30, 2018 . The Company recognizes interest and penalties related to unrecognized tax benefits as a component of income tax expense. The amount of accrued interest and penalties related to unrecognized tax benefits was $12.0 million and $8.4 million as of June 30, 2019 and 2018 , respectively. The total amount of unrecognized tax benefits at June 30, 2019 , may change significantly within the next 12 months, decreasing by an estimated range of $15.3 million to $4.4 million . The change, if any, may result primarily from foreseeable federal and state examinations, ongoing federal and state examinations, anticipated state settlements, expiration of various statutes of limitation, the results of tax cases, or other regulatory developments. The Company’s federal tax returns for fiscal years prior to fiscal 2016 are no longer subject to IRS examination. Certain items from completed examinations of fiscal 2006 through fiscal 2012 are pending outcome of litigation in Federal District Court as of June 30, 2019. In addition, Time is under IRS examination for the period 2008 - 2014 (pre-spin). The Company has various state income tax examinations ongoing at various stages of completion, but generally the state income tax returns have been audited or closed to audit through fiscal 2005. The complete legal and structural separation of Time Warner Inc.’s (Time Warner) magazine publishing and related business from Time Warner (the Spin-Off) was completed by way of a pro rata dividend of Time Inc. shares held by Time Warner to its stockholders as of May 23, 2014, based on a distribution ratio of one share of Time Inc. common stock for every eight shares of Time Warner common stock held (the Distribution). In connection with the acquisition of Time, the Company assumed the Tax Matters Agreement (TMA) entered into with Time Warner that requires Time to indemnify Time Warner for certain tax liabilities for periods prior to the Spin-Off from Time Warner, which was completed on June 6, 2014. With respect to taxes other than those incurred in connection with the Spin-Off, the TMA provides that the Company will indemnify Time Warner for (1) any taxes of Time and its subsidiaries for all periods after the Distribution and (2) any taxes of the Time Warner group for periods prior to the Distribution to the extent attributable to Time or its subsidiaries. For purposes of the indemnification described in clause (2), however, Time will generally be required to indemnify Time Warner only for any such taxes that are paid in connection with a tax return filed after the Distribution or that result from an adjustment made to such taxes after the Distribution. In these cases, Time’s indemnification obligations generally would be computed based on the amount by which the tax liability of the Time Warner group is greater than it would have been absent Time’s inclusion in its tax returns (or absent the applicable adjustment). Time and Time Warner will generally have joint control over tax authority audits or other tax proceeding related to Time specific tax matters. As of June 30, 2019 and 2018 , the Company has recorded a liability in connection with the TMA of $27.5 million and $26.0 million , respectively. |
Commitments and Contingent Liab
Commitments and Contingent Liabilities | 12 Months Ended |
Jun. 30, 2019 | |
Commitments and Contingencies Disclosure [Abstract] | |
Commitments and Contingent Liabilities | 9. Commitments and Contingent Liabilities The Company has commitments under certain firm contractual arrangements (firm commitments) to make future payments. These firm commitments secure the future rights to various assets and services to be used in the normal course of operations. Commitments not recorded on the Consolidated Balance Sheets consist primarily of operating lease arrangements, and purchase obligations for goods and services. Other commitments, which are recorded on the Consolidated Balance Sheets, consist primarily of debt and pension obligations. Commitments expected to be paid over the next five years and thereafter are as follows: Payments Due In Years ending June 30, 2020 2021 2022 2023 2024 Thereafter Total (in millions) Operating leases $ 61.3 $ 57.5 $ 54.9 $ 52.4 $ 52.8 $ 397.7 $ 676.6 Broadcast rights payable Recorded commitments 6.5 3.7 2.8 1.7 0.3 — 15 Unavailable rights 11.2 2.9 0.2 — — — 14.3 Total commitments $ 79.0 $ 64.1 $ 57.9 $ 54.1 $ 53.1 $ 397.7 $ 705.9 The Company occupies certain facilities and uses certain equipment under long-term, non-cancelable operating lease agreements through 2032. Future minimum operating lease payments have been reduced by future minimum sublease income of $7.7 million in fiscal 2020, $8.7 million in fiscal 2021, $9.3 million in fiscal 2022, $9.1 million in fiscal 2023, $9.5 million in fiscal 2024 and $24.2 million thereafter. Non-cancellable sublease income is committed through 2026. Rent expense under such leases was $67.6 million in fiscal 2019 , $45.9 million in fiscal 2018 , and $20.1 million in fiscal 2017 . The Company has recorded commitments for broadcast rights payable in future fiscal years. The Company also is obligated to make payments under contracts for broadcast rights not currently available for use and therefore not included in the consolidated financial statements. Such unavailable rights amounted t o $14.3 million at June 30, 2019 . The fair value of these commitments for unavailable broadcast rights, determined by the present value of future cash flows discounted at the Company’s current borrowing rate, w as $13.6 million at June 30, 2019 . Lease Guarantees In March 2018, the Company sold TIUK, a U.K. multi-platform publisher. In connection with the sale of TIUK, the Company recognized a liability in other noncurrent liabilities in connection with a lease of office space in the U.K. through December 31, 2025, which is guaranteed by the Company. The lease guarantee liability is being amortized into earnings over the life of the lease. The carrying value of the lease guarantee was $8.0 million at June 30, 2019. The Company is only obligated to pay for the lease guarantee in the event that TIUK fails to perform under the lease agreement. If TIUK fails to perform under the lease agreement, the maximum lease guarantee obligation for which the Company would be liable is approximately $66.9 million as of June 30, 2019. The Company has assessed that it is unlikely that TIUK will not perform its obligations under the lease. The Company guarantees two other leases of entities previously sold, one through January 2023 and another through November 2030. The carrying value of those guarantees, which are recorded in other noncurrent liabilities on the Consolidated Balance Sheets, was $2.6 million at June 30, 2019, and the maximum obligation for which the Company would be liable if the primary obligors fail to perform under the lease agreements is $15.3 million as of June 30, 2019. Legal Proceedings In the ordinary course of business, Meredith is a defendant in or party to various legal claims, actions, and proceedings. These claims, actions and proceedings are at varying stages of investigation, arbitration, or adjudication, and involve a variety of areas of law. Time Inc. (now known as TI Gotham Inc.), which is now a wholly-owned subsidiary, previously reported on, and the Company updates below, the following legal proceedings. On October 26, 2010, the Canadian Minister of National Revenue denied the claims by Time Inc. Retail (formerly Time/Warner Retail Sales & Marketing, Inc.) (TIR) for input tax credits in respect of goods and services tax that TIR had paid on magazines it imported into and had displayed at retail locations in Canada during the years 2006 to 2008, on the basis that TIR did not own those magazines and issued Notices of Reassessment in the amount of approximately C$52 million . On January 21, 2011, TIR filed an objection to the Notices of Reassessment with the Chief of Appeals of the Canada Revenue Agency (CRA), arguing that TIR claimed input tax credits only in respect of goods and services tax it actually paid and it is entitled to a rebate for such payments. On September 13, 2013, TIR received Notices of Reassessment in the amount of C$26.9 million relating to the same type of situation during the years 2009 to 2010, and TIR filed similar objections as for prior years. By letter dated June 19, 2015 the CRA requested payment of C$89.8 million , which includes interest accrued and stated that failure to pay may result in legal action. TIR responded by stating that collection should remain stayed pending resolution of the issues raised by TIR’s objection. Including interest accrued, the total of the reassessments claimed by the CRA for the years 2006 to 2010 was C$91 million as of November 30, 2015. The parties are engaged in mediation. The Company establishes an accrued liability for specific matters, such as a legal claim, when the Company determines both that a loss is probable, and the amount of the loss can be reasonably estimated. Once established, accruals are adjusted from time to time, as appropriate, in light of additional information. The amount of any loss ultimately incurred in relation to matters for which an accrual has been established may be higher or lower than the amounts accrued for such matters. Due to the inherent difficulty of predicting the outcome of litigation, claims and other matters, the Company often cannot predict what the eventual outcome of a pending matter will be, or what the timing or results of the ultimate resolution of a matter will be. Accordingly, for the matters described above, the Company is unable to predict the outcome or reasonably estimate a range of possible loss. On September 6, 2019, a shareholder filed a putative class action lawsuit in the U.S. District Court for the Southern District of New York against the Company, its Chief Executive Officer, and its Chief Financial Officer, seeking to represent a class of shareholders who acquired securities of the Company between May 10, 2018 and September 4, 2019. On September 12, 2019, a shareholder filed a putative class action lawsuit in the U.S. District Court for the Southern District of Iowa against the Company, its Chief Executive Officer, its Chief Financial Officer, and its Chairman of the Board seeking to represent a class of shareholders who acquired securities of the Company between January 31, 2018 and September 5, 2019. Both complaints allege that the defendants made materially false and/or misleading statements, and failed to disclose material adverse facts, about the Company’s business, operations, and prospects. Both complaints assert claims under the federal securities laws and seek unspecified monetary damages and other relief. The defendants have not yet responded to either complaint but intend to vigorously oppose them. The Company expresses no opinion as to the ultimate outcome of these matters. |
Fair Value Measurements
Fair Value Measurements | 12 Months Ended |
Jun. 30, 2019 | |
Fair Value Disclosures [Abstract] | |
Fair Value Measurements | 10. Fair Value Measurements The Company estimates the fair value of financial instruments using available market information and valuation methodologies the Company believes to be appropriate for these purposes. Considerable judgment and a high degree of subjectivity are involved in developing these estimates and, accordingly, they are not necessarily indicative of amounts the Company would realize upon disposition. The fair value hierarchy consists of three broad levels of inputs that may be used to measure fair value, which are described below: • Level 1 Quoted prices (unadjusted) in active markets for identical assets or liabilities; • Level 2 Inputs other than quoted prices included within Level 1 that are either directly or indirectly observable; and • Level 3 Assets or liabilities for which fair value is based on valuation models with significant unobservable pricing inputs and which result in the use of management estimates. The following table sets forth the carrying value and the estimated fair value of the Company’s financial instruments not measured at fair value on a recurring basis: June 30, 2019 June 30, 2018 (In millions) Carrying Value Fair Value Carrying Value Fair Value Broadcast rights payable $ 15.0 $ 13.6 $ 29.7 $ 27.4 Long-term debt 2,333.3 2,452.9 3,135.6 3,179.8 The fair value of broadcast rights payable was determined utilizing Level 3 inputs. The fair value of total long-term debt is based on pricing from observable market information obtained from a non-active market, therefore is included as a Level 2. As of June 30, 2019 , the Company had assets related to its qualified pension plans measured at fair value. The required disclosures regarding such assets are presented within Note 12 . In addition, the Company has liabilities related to contingent consideration payables that are valued at estimated fair value as discussed in Note 2 . The following table sets forth the assets and liabilities measured at fair value on a recurring basis: (In millions) June 30, 2019 June 30, 2018 Accrued expenses and other liabilities Contingent consideration $ — $ 24.6 Deferred compensation plans 4.7 8.4 Other noncurrent liabilities Contingent consideration 0.8 0.8 Deferred compensation plans 16.2 21.0 The fair value of deferred compensation plans is derived from quotes from observable market information, and thus represent Level 2 measurements. The fair value of the contingent consideration is based on significant inputs not observable in the market and thus represent a Level 3 measurement. The following table represents the changes in the fair value of assets and liabilities subject to Level 3 remeasurement during the years ended June 30, 2019 and 2018 . Years ended June 30, 2019 2018 (in millions) Contingent consideration Balance at beginning of year $ 25.4 $ 34.2 Accrual on Time’s opening balance sheet 1 — 1.1 Payments (19.3 ) (5.1 ) Fair value adjustment of contingent consideration (5.3 ) (4.8 ) Balance at end of year $ 0.8 $ 25.4 Trademarks Balance at beginning of year 2 $ 69.0 $ 55.7 Impairment (41.8 ) (22.7 ) Balance at end of year $ 27.2 $ 33.0 Investment in Next Issue Media Balance at beginning of year 3 $ — $ 11.0 Additions due to investment and acquisition — 3.3 Equity method investment losses — (3.6 ) Impairment — (9.3 ) Sale — (1.4 ) Balance at end of year $ — $ — Lease guarantee Balance at beginning of year $ — $ — Accrual on Time’s opening balance sheet — 3.6 Issuance of new guarantees — 9.2 Fair market value adjustment of lease guarantees — (0.4 ) Foreign currency exchange impact — (0.5 ) Balance at end of year $ — $ 11.9 1 Of this amount, $0.5 million was classified in liabilities associated with assets held-for-sale on the opening balance 2 Book value of trademarks impaired during the year. 3 Book value of investment impaired during the year. The fair value adjustment of contingent consideration is the change in the estimated earn out payments based on projections of performance and the amortization of the present value discount. The fair value adjustment of contingent consideration is included in selling, general, and administrative in the Consolidated Statements of Earnings. Meredith recorded impairment on certain national media trademarks at its annual impairment measurement date of May 31, 2019. Therefore, the $27.2 million of impaired trademarks are considered to be held at fair value at June 30, 2019, on a non-recurring basis. Certain national media trademarks were impaired during fiscal 2018 thus deemed to be measured at fair value on a non-recurring basis, which totaled $33.0 million . The fair values of the trademarks are determined based on significant inputs not observable in the market and thus represents a Level 3 measurement. The key assumptions used to determine the fair value include discount rates, estimated cash flows, royalty rates, and revenue growth rates. The discount rate used is based on several factors including market interest rates, a weighted average cost of capital analysis based on the target capital structure, and includes adjustments for market risk and Company specific risk. Estimated cash flows are based upon internally developed estimates and the revenue growth rates are based on industry knowledge and historical performance. For further discussion of the impairment of these trademarks, refer to Note 5 . The impairment of trademarks is included in the impairment of long-lived assets line in the Consolidated Statements of Earnings. Next Issue Media was reported as a cost method investment as of June 30, 2017, and the impairment of this investment is recorded in non-operating expense, net in the Consolidated Statements of Earnings. In the Acquisition, the Company assumed lease guarantees related to space leased by various former Time subsidiaries. The fair value of the lease guarantees was derived using a probability weighted present value of expected future payments using the with-and-without approach, for which the Company used unobservable inputs that are classified as Level 3 under the fair value hierarchy. The lease guarantee liabilities are being amortized into earnings on a straight-line basis over the lives of the respective leases, the longest of which extends through November 2030. The lease guarantees are not considered to be measured at fair value at June 30, 2019 or 2018. |
Revenue Recognition
Revenue Recognition | 12 Months Ended |
Jun. 30, 2019 | |
Revenue from Contract with Customer [Abstract] | |
Revenue Recognition | 11. Revenue Recognition Meredith disaggregates revenue from contracts with customers by types of goods and services. A reconciliation of disaggregated revenue to segment revenue (as provided in Note 18 ) is as follows. June 30, 2019 National Media Local Media Intersegment Elimination Total (In millions) Advertising related Print $ 690.1 $ — $ — $ 690.1 Non-political spot — 323.3 — 323.3 Political spot — 102.9 — 102.9 Digital 394.9 15.8 — 410.7 Third party sales 65.3 96.2 (1.9 ) 159.6 Total advertising related 1,150.3 538.2 (1.9 ) 1,686.6 Consumer related Subscription 693.7 — — 693.7 Retransmission — 316.5 — 316.5 Newsstand 165.5 — — 165.5 Affinity marketing 83.6 — — 83.6 Licensing 94.4 — — 94.4 Digital consumer driven 39.9 — — 39.9 Total consumer related 1,077.1 316.5 — 1,393.6 Other Projects based 50.5 — — 50.5 Other 48.7 9.1 — 57.8 Total other 99.2 9.1 — 108.3 Total revenues $ 2,326.6 $ 863.8 $ (1.9 ) $ 3,188.5 As a result of the adoption of ASC 606, the Company determined that certain barter revenue and expense will no longer be recognized. As a result, $1.9 million of the current portion of broadcast rights and the current portion of broadcast rights payable and $8.2 million of the noncurrent portion of broadcast rights and the noncurrent portion of broadcast rights payable were written off in the first quarter of fiscal 2019. Other impacts from the adoption of ASC 606 on the consolidated financial statements were immaterial. CONTRACT BALANCES The timing of Meredith’s performance under its various contracts often differs from the timing of the customer’s payment, which results in the recognition of a contract asset or a contract liability. A contract asset is recognized when a good or service is transferred to a customer and the Company does not have the contractual right to bill for the related performance obligations. A contract liability is recognized when consideration is received from the customer prior to the transfer of goods or services. Current portion of contract liabilities were $394.0 million at July 1, 2018 and $458.9 million at June 30, 2019 , and are presented as current portion of unearned revenues on the Consolidated Balance Sheets. Noncurrent contract liabilities were $132.3 million and $318.6 million at July 1, 2018 and June 30, 2019 , respectively, and are reflected as unearned revenues on the Consolidated Balance Sheets. Subscription revenue of $371.4 million recognized in the year ended June 30, 2019 , was in contract liabilities at the beginning of the period. An additional $13.2 million of revenue recognized in fiscal 2019 was related to the liability balance as of the beginning of the period. NATURE OF PERFORMANCE OBLIGATIONS At contract inception, Meredith assesses the obligations promised in its contracts with customers and identifies a performance obligation for each promise to transfer a good or service or bundle that is distinct. To identify the performance obligations, the Company considers all the promises in the contract, whether explicitly stated or implied based on customary business practices. For a contract that has more than one performance obligation, the Company allocates the total contract consideration to each distinct performance obligation on a relative standalone selling price basis. Revenue is recognized when, or as, the performance obligations are satisfied and control is transferred to the customer. Print Advertising —The Company provides advertisement placements in print media directly to advertisers or through advertising agencies. The Company’s performance obligations related to print advertising are satisfied when the magazine in which an advertisement appears is published, which is defined as an issue’s on-sale date. The customer is invoiced the agreed-upon price when the advertisements are published under normal industry trade terms. The agreed upon price is adjusted for estimated provisions for rebates, rate adjustments, and discounts. As part of the Company’s customary business practices, print advertising contracts include guaranteed circulation levels of magazines, referred to as rate base, and a number of sales incentives to its customers including volume discounts, rebates, bonus pages, etc. For all such contracts that include these types of variable consideration, the Company estimates such when determining the transaction price. Non-political and Political Spot Advertising —The Company sells commercial time directly to political and non-political advertisers or through advertising agencies. The Company’s performance obligations related to spot advertising are satisfied when the advertisement is aired by the broadcasting station. Rates for spot advertising are influenced primarily by the market size, number and type of competitors, audience share, and audience demographics. The customer is invoiced the agreed-upon price at the end of the month in which the advertisements were aired under normal trade terms. Political spot advertisements require payment in advance of airing. The agreed upon price may be adjusted for estimated provisions for rebates, rate adjustments, and discounts. As part of the Company’s customary business practices, broadcast television advertising contracts may include gross rating points goals and/or sales incentives to its customers. For all such contracts that include these types of variable consideration, the Company estimates the variable consideration and factors in such an estimate when determining the transaction price. Digital Advertising —The Company sells digital advertising inventory on its websites directly to advertisers or through advertising agencies. The Company’s performance obligations related to digital advertising are generally satisfied when the advertisement is run on owned or operated websites. The price for digital advertising is determined by an agreed-upon pricing model such as CPC (cost per click), CPM (cost per 1,000 impressions), or flat fees. Revenue from the sale of digital advertising space is recognized when the advertisements are delivered based on the respective pricing model or ratably over the contract period for flat fee advertisements. The customer is invoiced the agreed-upon price in the month following the month that the advertisements are delivered with normal trade terms. The agreed upon price is adjusted for estimated provisions for rebates, rate adjustments, and discounts. As part of the Company’s customary business practices, digital advertising contracts may include a guaranteed number of impressions and sales incentives to its customers including volume discounts, rebates, value added impressions, etc. For all such contracts that include these types of variable consideration, the Company estimates the variable consideration and factors in such an estimate when determining the transaction price. Third-Party Sales —The Company sells a variety of advertising products to our advertising customers that are placed on third-party platforms. The Company’s performance obligations related to these sales are generally satisfied, and revenue is recognized, when the advertisement is run by the third parties, or a print product is placed on-sale, due to the Company's obligation to reach a targeted audience demographic. The transaction price represents the cost of the purchased media plus a mark-up. The customer is invoiced the agreed-upon price shortly after the advertisements appear under normal trade terms. The agreed upon price is adjusted for estimated provisions for rebates, rate adjustments, and discounts. As part of the Company’s customary business practices, contracts may include guaranteed audience targets and a number of sales incentives to its customers including volume discounts, rebates, value added impressions, etc. For all such contracts that include these types of variable consideration, the Company estimates the variable consideration in determining the transaction price. Subscription —Meredith sells magazines and books to consumers through subscriptions. Each copy of a magazine and book is determined to be a distinct performance obligation that is satisfied when the publication is sent to the customer. The majority of the Company’s subscription sales are prepaid at the time of order. Subscriptions may be canceled at any time for a refund of the price paid for remaining issues. As the contract may be canceled at any time for a full refund of the unserved copies, the contract term is determined to be on an issue-to-issue basis as these contracts do not have substantive termination penalties. Revenues from subscriptions are deferred and recognized proportionately as subscribers are served. Some magazine subscription offers contain more than one magazine title in a bundle. Meredith allocates the total contract consideration to each distinct performance obligation, or magazine title, based on a standalone-selling price basis. Retransmission —Meredith's local media segment has entered into agreements with cable, satellite, and telecommunications service providers for licenses to access Meredith’s television station signals for retransmission. These licenses are functional licenses under which revenue is recognized at a point-in-time when access to the completed content is granted to the service provider. The transaction price for retransmission agreements generally are on a per subscriber basis. The recognition pattern for retransmission contracts mirrors over-time revenue recognition as Meredith delivers the signal to the service provider, which represents completed content, on an on-going basis during the license period. Newsstand —Meredith sells single copy magazines, or bundles of single copy magazines, to wholesalers for ultimate resale on newsstands primarily at major retailers and grocery/drug stores, and in digital form on tablets and other electronic devices. Publications sold to magazine wholesalers are sold with the right to receive credit from the Company for magazines returned to the wholesaler by retailers. Revenue is recognized on the issue's on-sale date as the date aligns most closely with the date that control is transferred to the customer. The Company bases its estimates for returns on historical experience and current marketplace conditions. Affinity Marketing —Meredith partners with third parties to market and place magazine subscriptions for both Meredith titles and third-party publisher magazine titles. Meredith acts as an agent in sales of third-party magazine subscriptions and recognizes revenue in the net amount of consideration retained after paying the third-party publishers. Meredith assumes credit risk related to refunds on these sales, for which a reserve is established. The reserve is based on historical statistics at the time the cash is collected, which is after a risk-free trial period is over. Revenue from the acquisition of a subscriber is recognized when the subscriber name has been provided to the publisher and after any risk-free trial period has expired, if applicable. Licensing —Meredith has entered into various licensing agreements that provide third-party partners the right to utilize the Company’s intellectual property. Licensing agreements include both symbolic and functional licenses. Symbolic licenses include direct-to-retail partnerships that create branded products based on the national media brands, a branded real estate program, and international magazine partnerships. Functional licenses in national media consist of content licensing. Revenues from symbolic licenses are in the form of a royalty based on the sale or usage of the branded product, which is recognized over time when the sale or use occurs under the sales or usage-based royalty exception. Revenues from functional licenses are recognized at a point-in-time when access to the completed content is granted to the partner. Digital Consumer Driven —Various digital consumer products utilize Meredith brands to drive responses from individual customers resulting in the generation of revenue. Digital consumer driven revenue is primarily commission-based. It is earned as consumer responses are generated through various programs and delivered to the program's third-party sponsor. Revenue is recognized at the point-in-time Meredith has fully satisfied the obligations to the third-party sponsor. Projects Based —Meredith’s national media segment contains several business lines that are business-to-business and project based. Such revenue may relate to any one or combination of the following activities; custom publishing, content strategy and development, email marketing, social media, database marketing, and search engine optimization. Revenue earned under the OA with the purchasers of the TIME and Fortune brands is also considered to be projects based. The products and services delivered under these contracts are customized to each client and therefore, do not have alternative uses to Meredith or other clients. As a result, revenue under such contracts are generally recognized over time based on project milestones until the delivery of the final product to the customer. Other —Other revenue primarily includes revenues derived from third-party magazine fulfillment and third-party newsstand sales and marketing support, both of these services are expected to cease by the end of the fiscal year. The remaining revenues within this category are management fees and revenues from other small programs, which are generally recognized at a point-in-time as the performance obligations are transferred to the customer. TIMING OF SATISFACTION OF PERFORMANCE OBLIGATIONS Point-in-Time Performance Obligations —For performance obligations related to sales of print, political and non-political spot, and certain digital advertising space, the Company determines that the customer can direct the use of and obtain substantially all the benefits from the advertising products on the issue’s on-sale date, when aired by the broadcasting station, or as the digital impressions are served. For performance obligations related to sales of magazines through subscriptions, the customer obtains control when each magazine issue is mailed to the customer on or before the issue’s on-sale date. For sales of single copy magazines on newsstands, revenue is recognized on the issue’s on-sale date as the date aligns most closely with the date that control is transferred to the customer. Exclusive content licensing is a functional license under which revenue is recognized at a point-in-time when the access is granted to the customer as that is the point at which the customer gains access to completed content. Retransmission agreements also represent a functional license and are recognized at a point-in-time. However, as the content licensed is continuously added, the revenue recognition pattern mimics an over-time recognition. Finally, revenue from acquisition of subscribers to non-Meredith magazine titles by the Company's affinity marketers is recognized at a point-in-time, once the subscriber name has been provided to the third-party publisher. Similarly, revenue from commission-based digital consumer generated sources is recognized at a point-in-time once Meredith has fulfilled its obligation to connect a consumer to a third-party product or service. Determining when control transfers requires management to make judgments that affect the timing of revenue recognized. The Company has determined that recognition of revenue at a point-in-time for these products and services provides a faithful depiction of the transfer of control to the customer. Over-Time Performance Obligations —For performance obligations related to sales of project based and certain digital advertising space, the Company transfers control and recognizes revenue over time by measuring progress towards complete satisfaction using the most appropriate method, i.e. either the "Input Method" or the "Output Method." For performance obligations related to digital advertising, the Company satisfies its performance obligations on some flat-fee digital advertising placements over time using a time-elapsed output method. Determining a measure of progress requires management to make judgments that affect the timing of revenue recognized. The Company has determined that the above method provides a faithful depiction of the transfer of goods or services to the customer. For performance obligations recognized using a time-elapsed output method, the Company’s efforts are expended evenly throughout the period. TRANSACTION PRICE AND AMOUNTS ALLOCATED TO PERFORMANCE OBLIGATIONS Determining the Transaction Price —Certain advertising contracts contain variable components of the transaction price, such as volume discounts and rebates. Meredith has sufficient historical data and has established processes to reliably estimate these variable components of the transaction price. Certain spot advertising contracts contain a guarantee of ratings performance that requires Meredith to compensate the advertiser with additional advertising if the guaranteed ratings are not met. Meredith has established a reserve based on the rating points due to advertisers at the end of each fiscal quarter valued at the average station cost per point. The Company typically does not offer any type of variable consideration in standard magazine subscription contracts. For these contracts, the transaction price is fixed upon establishment of the contract that contains the final terms of the sale including description, quantity and price of each subscription purchased. Therefore, the Company does not estimate variable consideration or perform a constraint analysis for these contracts. A right of return exists for newsstand contracts. Meredith has sufficient historical data to estimate the final amount of returns and reduces the transaction price at contract inception for the expected return reserve. Revenue from symbolic licenses is based on a percentage of revenue generated through the sale of the branded products representing a sales-or-usage-based royalty. Therefore, revenue is recorded based on actual results when the sale or usage occurs rather than estimated at contract inception. Revenue under contracts that contain minimum guarantees to be paid by the retailer to Meredith is recognized straight line each month until the royalty exceeds the guarantee at which time the excess is recognized. There is no variable consideration related to functional licenses. Variable consideration related to project based revenue is limited to discounts for overages and reimbursement of out of pocket costs that are not separable from the performance obligation. Both are evaluated or estimated at contract inception and throughout the contract, based on similar projects and historical experience and are considered in the transaction price. Estimating Standalone-Selling Prices —For contracts that contain multiple performance obligations, the Company allocates the transaction price to each performance obligation on a relative standalone-selling price basis. The standalone-selling price is the price at which the Company would sell a promised good or service separately to the customer. In situations in which an obligation is bundled with other obligations and the total amount of consideration does not reflect the sum of individual observable prices, the Company allocates the discount to (1) a single obligation if the discount is attributable to that obligation or (2) prorates across all obligations if the discount relates to the bundle. When standalone-selling price is not directly observable, the Company estimates and considers all the information that is reasonably available to the Company, including market conditions, entity-specific factors, customer information, etc. The Company maximizes the use of observable inputs and applies estimation methods consistently in similar circumstances. Measuring Obligations for Returns and Refunds —The Company accepts product returns in some cases. The Company establishes provisions for estimated returns concurrently with the recognition of revenue. The provisions are established based upon consideration of a variety of factors, including, among other things, recent and historical return rates for both specific products and distributors and the impact of any new product releases and projected economic conditions. CONTRACT COSTS Assets Recognized from Contract Costs —The Company recognizes an asset for the incremental costs of obtaining a contract with a customer, paid to external parties, if it expects to recover those costs. The Company has determined that sales commissions paid on all third-party agent sales of subscriptions are direct and incremental and therefore meet the capitalization criteria. These capitalized costs are amortized as revenue is recognized or over the term of the agreement. Direct mail costs also meet the requirements to be capitalized as assets if they are proven to be recoverable. As of June 30, 2019 , the balances recognized from the costs incurred to obtain contracts with customers was $515.9 million , $242.0 million of which was recorded in current portion of subscription acquisition costs and $273.9 million was recorded in subscription acquisition costs on the Consolidated Balance Sheets. The amount of amortization that the Company recognized during fiscal 2019 was $319.5 million . There were no impairments of contract assets recognized during the year ended June 30, 2019 . |
Pension and Postretirement Bene
Pension and Postretirement Benefit Plans | 12 Months Ended |
Jun. 30, 2019 | |
Retirement Benefits [Abstract] | |
Pension and Postretirement Benefit Plans | 12. Pension and Postretirement Benefit Plans Defined Contribution Plans The Company sponsors a defined contribution saving plan for most of its U.S. based employees. Eligible Company employees may participate in the Meredith Savings and Investment Plan, a defined contribution plan that allows eligible employees to contribute a percentage of their salary, commissions, and bonuses in accordance with plan limitations and provisions of Section 401(k) of the Internal Revenue Code (Section 401(k)) and the Company makes matching contributions to the plan subject to the limits of the plan. The Company currently matches 100 percent of the first 4 percent and 50 percent of the next 1 percent of employee contributions. In connection with the Acquisition, certain employees continued to participate, through December 31, 2018, in the defined contribution savings plan that Time had in place for its employees in the U.S., the Time Inc. Savings Plan. For the Time Inc. Savings Plan, the Company matched 100 percent of the first 4 percent and 50 percent of the next 2 percent of eligible compensation. In addition to the annual employer contribution made to the Time Inc. Savings Plan, following the plan year, the Company made an employer match contribution of up to 5 percent of each participant’s compensation less any employer matching contribution made within the plan year to those participants who contributed up to 6 percent of their compensation for the plan year. The Time Inc. Savings Plan merged into the Meredith Savings and Investment Plan effective for the 2019 calendar plan year. Employees are allowed to choose among various investment options. The Meredith Savings and Investment Plan included an investment option in the Company’s common stock until December 31, 2018. Matching contributions are invested in the same manner as the participants’ pre-tax contributions. Company contribution expense under these plans totaled $22.6 million in fiscal 2019 , $19.6 million in fiscal 2018 , and $10.9 million in fiscal 2017 . The Company sponsors the Meredith Corporation Deferred Compensation Plan. In connection with the Acquisition, the Company assumed responsibility for sponsoring The Time Inc. Deferred Compensation Plan, which is a frozen plan (collectively the Deferred Compensation Plans). The Deferred Compensation Plans allow participants to defer certain bonuses and salaries. No actual monies are set aside in respect of the Deferred Compensation Plans and participants have no rights to Company assets in respect of plan liabilities in excess of general unsecured creditors. The liabilities associated with the plans fluctuate with hypothetical yields of the underlying investments. Liabilities for the uncollateralized plans were approximatel y $20.9 million and $29.4 million at June 30, 2019 and 2018 , respectively, of which approximately $4.7 million was reflected in accrued compensation and benefits and approximately $16.2 million was reflected in other noncurrent liabilities on the Consolidated Balance Sheets at June 30, 2019 and approximately $8.4 million was reflected in accrued compensation and benefits and approximately $21.0 million was reflected in other noncurrent liabilities on the Consolidated Balance Sheets at June 30, 2018 . Pension and Postretirement Plans Meredith has U.S. noncontributory pension plans covering substantially all employees who were employed by Meredith prior to the Acquisition. In connection with the Acquisition, the Company assumed the obligations under Time’s various international pension plans including plans in the U.K., Netherlands, and Germany. These domestic and international plans include qualified (funded) plans as well as nonqualified (unfunded) plans. These plans provide participating employees with retirement benefits in accordance with benefit provision formulas. The nonqualified plans provide retirement benefits only to certain highly compensated employees. The Company also sponsors defined healthcare and life insurance plans that provide benefits to eligible retirees. Obligations and Funded Status The following tables present changes in, and components of, the Company’s net assets/liabilities for pension and other postretirement benefits: Pension Postretirement Domestic International Domestic June 30, 2019 2018 2019 2018 2019 2018 (In millions) Change in benefit obligation Benefit obligation, beginning of year $ 179.4 $ 170.9 $ 721.5 $ — $ 8.4 $ 9.3 Acquisitions 1 — — — 836.6 — — Service cost 11.5 13.0 0.1 — — 0.1 Interest cost 6.5 5.9 16.9 8.0 0.3 0.3 Participant contributions — — — — 0.9 0.8 Plan amendments — 1.2 7.1 — — — Net actuarial loss (gain) 10.3 2.4 35.8 (21.0 ) (0.4 ) (0.8 ) Benefits paid (including lump sums) (13.1 ) (12.9 ) (17.0 ) (44.1 ) (0.9 ) (1.3 ) Settlements (8.4 ) — (12.7 ) — — — Contractual termination benefits 1.3 — — — — — Curtailments — (1.1 ) — — — — Foreign currency exchange rate impact — — (26.4 ) (58.0 ) — — Benefit obligation, end of year $ 187.5 $ 179.4 $ 725.3 $ 721.5 $ 8.3 $ 8.4 Change in plan assets Fair value of plan assets, beginning of year $ 139.0 $ 139.2 $ 841.5 $ — $ — $ — Acquisitions 1 — — — 867.7 — — Actual return on plan assets 9.2 12.0 75.5 (6.7 ) — — Employer contributions 8.7 0.7 16.2 88.9 0.1 0.5 Participant contributions — — — — 0.8 0.8 Benefits paid (including lump sums) (13.1 ) (12.9 ) (17.0 ) (44.1 ) (0.9 ) (1.3 ) Settlements (8.4 ) — (12.7 ) — — — Foreign currency exchange rate impact — — (31.4 ) (64.3 ) — — Fair value of plan assets, end of year $ 135.4 $ 139.0 $ 872.1 $ 841.5 $ — $ — Over (under) funded status, end of year $ (52.1 ) $ (40.4 ) $ 146.8 $ 120.0 $ (8.3 ) $ (8.4 ) 1 The International pension plans were acquired with the acquisition of Time Inc. on January 31, 2018. Benefits paid directly from Meredith assets are included both in employer contributions and benefits paid. In connection with the sale of TIUK, during fiscal 2018, the Company contributed £60.0 million to the IPC Media Pension Scheme (IPC Plan) defined benefit pension plan in the U.K. We retained the IPC Plan in the sale of TIUK. The following amounts are recognized in the Consolidated Balance Sheets: Pension Postretirement Domestic International Domestic June 30, 2019 2018 2019 2018 2019 2018 (In millions) Other assets Prepaid benefit cost $ 11.2 $ 16.9 $ 157.1 $ 137.4 $ — $ — Accrued expenses-compensation and benefits Accrued benefit liability (28.0 ) (9.9 ) (0.2 ) (0.2 ) (0.6 ) (0.6 ) Other noncurrent liabilities Accrued benefit liability (35.3 ) (47.4 ) (10.1 ) (17.2 ) (7.7 ) (7.8 ) Net amount recognized, end of year $ (52.1 ) $ (40.4 ) $ 146.8 $ 120.0 $ (8.3 ) $ (8.4 ) The accumulated benefit obligation for the domestic defined benefit pension plans was $171.1 million and $164.7 million at June 30, 2019 and 2018 , respectively. The accumulated benefit obligation for the international defined benefit pension plans was $725.3 million and $721.5 million at June 30, 2019 and 2018 , respectively . The following table provides information about pension plans with projected benefit obligations and accumulated benefit obligations in excess of plan assets: Domestic International June 30, 2019 2018 2019 2018 (In millions) Projected benefit obligation $ 63.4 $ 57.3 $ 10.3 $ 28.4 Accumulated benefit obligation 57.1 51.6 10.3 28.4 Fair value of plan assets 0.1 0.1 — 11.0 Costs The components of net periodic benefit costs recognized in the Consolidated Statements of Earnings were as follows: Pension Postretirement Domestic International Domestic Years ended June 30, 2019 2018 2017 2019 2018 2019 2018 2017 (In millions) Components of net periodic benefit costs Service cost $ 11.5 $ 13.0 $ 12.5 $ 0.1 $ — $ — $ 0.1 $ 0.1 Interest cost 6.5 5.9 4.9 16.9 8.0 0.3 0.3 0.3 Expected return on plan assets (9.7 ) (10.5 ) (9.2 ) (31.5 ) (17.9 ) — — — Prior service cost (credit) amortization 0.5 0.3 0.2 — — — (0.4 ) (0.4 ) Actuarial loss (gain) amortization 1.9 2.0 3.6 — — (0.6 ) (0.3 ) (0.3 ) Settlement charge (credit) 2.7 — — (4.1 ) 0.2 — — — Contractual termination benefits 1.3 — — — — — — — Net periodic benefit costs (credit) $ 14.7 $ 10.7 $ 12.0 $ (18.6 ) $ (9.7 ) $ (0.3 ) $ (0.3 ) $ (0.3 ) The components of net periodic benefit costs (credit), other than the service cost component, are included in non-operating income, net in the Consolidated Statements of Earnings. The amortization of amounts related to unrecognized prior service costs/credit and net actuarial gain/loss were reclassified out of other comprehensive income as components of net periodic benefit costs. Amounts recognized in the accumulated other comprehensive loss component of shareholders’ equity for Company-sponsored plans were as follows: Pension Postretirement Domestic International Domestic June 30, 2019 2018 2019 2018 2019 2018 (In millions) Unrecognized net actuarial losses (gains), net of taxes $ 25.3 $ 20.7 $ (0.6 ) $ 2.6 $ (1.7 ) $ (1.8 ) Unrecognized prior service cost (credit), net of taxes 1.1 1.5 5.6 — — — Total $ 26.4 $ 22.2 $ 5.0 $ 2.6 $ (1.7 ) $ (1.8 ) During fiscal 2020 , the Company expects to recognize as part of its net periodic benefit costs $2.5 million of net actuarial losses and $0.7 million of prior service costs for the pension plans, and $0.5 million of net actuarial gains and no prior service costs for the postretirement plan, net of taxes, in the accumulated other comprehensive loss component of shareholders’ equity at June 30, 2019 . Assumptions Benefit obligations were determined using the following weighted average assumptions: Pension Postretirement Domestic International Domestic June 30, 2019 2018 2019 2018 2019 2018 Weighted average assumptions Discount rate 3.39 % 4.03 % 2.24 % 2.57 % 3.45 % 4.10 % Rate of compensation increase 3.09 % 3.50 % n/a n/a 3.50 % 3.50 % n/a - Not applicable Net periodic benefit costs were determined using the following weighted average assumptions: Pension Postretirement Domestic International Domestic Years ended June 30, 2019 2018 2017 2019 2018 2019 2018 2017 Weighted average assumptions Discount rate 4.03 % 3.41 % 2.98 % 2.57 % 2.57 % 4.10 % 3.65 % 3.40 % Expected return on plan assets 8.00 % 8.00 % 8.00 % 3.89 % 4.87 % n/a n/a n/a Rate of compensation increase 3.50 % 3.50 % 3.50 % n/a 3.50 % 3.50 % 3.50 % 3.50 % n/a - Not applicable Plan trend rates are the annual rates of increase expected for medical benefits payable from the Plan. The assumed health care trend rates used to measure the expected cost of benefits were as follows: Postretirement Assumed healthcare cost trend rates as of June 30, 2019 2018 2017 Rate of increase in health care cost levels Initial level 6.00 % 6.50 % 7.00 % Ultimate level 5.00 % 5.00 % 5.00 % Years to ultimate level 3 years 4 years 5 years Pension expense is calculated using a number of actuarial assumptions, including an expected long-term rate of return on assets and a discount rate. In developing the expected long-term rate of return on plan assets, the Company considered long-term historical rates of return, plan asset allocations as well as the opinions and outlooks of investment professionals and consulting firms. Returns projected by such consultants and economists are based on broad equity and bond indices. The objective is to select an average rate of earnings expected on existing plan assets and expected contributions to the plan during the year. The Company reviews this long-term assumption on a periodic basis. The value (market-related value) of plan assets is multiplied by the expected long-term rate of return on assets to compute the expected return on plan assets, a component of net periodic pension cost. The market-related value of plan assets is a calculated value that recognizes changes in fair value over three years. Assumed rates of increase in healthcare cost have a significant effect on the amounts reported for the healthcare plans. A change of one percentage point in the assumed healthcare cost trend rates would have the following effects: One Percentage Point Increase One Percentage Point Decrease (In millions) Effect on service and interest cost components for fiscal 2019 $ — $ — Effect on postretirement benefit obligation as of June 30, 2019 0.4 (0.3 ) Plan Assets The targeted and weighted average asset allocations by asset category for investments held by the Company’s pension plans are as follows: Domestic International 2019 Allocation 2018 Allocation 2019 Allocation 2018 Allocation June 30, Target Actual Target Actual Target Actual Target Actual Equity securities 70 % 68 % 70 % 70 % 7 % 7 % 32 % 18 % Fixed-income securities 30 % 32 % 30 % 30 % 80 % 79 % 17 % 29 % Other securities 1 — % — % — % — % 13 % 14 % 51 % 53 % Total 100 % 100 % 100 % 100 % 100 % 100 % 100 % 100 % 1 Other primarily includes pooled investment funds. Meredith’s investment policy for domestic plans seeks to maximize investment returns while balancing the Company’s tolerance for risk. The plan fiduciaries oversee the investment allocation process. This includes selecting investment managers, setting long-term strategic targets, and monitoring asset allocations. Target allocation ranges are guidelines, not limitations, and plan fiduciaries may occasionally approve allocations above or below a target range, or elect to rebalance the portfolio within the targeted range. The investment portfolio contains a diversified blend of equity and fixed-income investments. Furthermore, equity investments are diversified across domestic and international stocks and between growth and value stocks and small and large capitalizations. The primary investment strategy currently employed is a dynamic target allocation method that periodically rebalances among various investment categories depending on the current funded position. This program is designed to actively move from return-seeking investments (such as equities) toward liability-hedging investments (such as long-duration fixed-income) as funding levels improve. The reverse effect occurs when funding levels decrease. The trustees of the IPC Plan have delegated the day-to-day investment decisions of the IPC Plan to a large international fiduciary manager—and utilize an investment manager to monitor investment performance and the reporting of the fiduciary manager. The investment objective of the IPC Plan is to invest the assets prudently with the intention that the benefits promised to the members are provided. Funding level based de-risking triggers have been established such that the investment strategy evolves as the funding level moves along an agreed glide path. As the funding level improves, the investment strategy will de-risk. Each trigger level specifies a minimum interest rate and hedge rate ratio and a maximum allocation to growth assets—which target a diversified portfolio using specialist managers and asset classes. Equity securities did not include any Meredith Corporation common or class B stock at June 30, 2019 or 2018 . Fair value measurements for domestic pension plan assets were as follows: June 30, 2019 Total Fair Value Quoted Prices (Level 1) Significant Other Observable Inputs (Level 2) Significant Unobservable Inputs (Level 3) (In millions) Investments in registered investment companies Equity $ 91.8 $ 68.4 $ 23.4 $ — Fixed Income 43.0 — 43.0 — Pooled separate accounts 0.6 — 0.6 — Total assets at fair value $ 135.4 $ 68.4 $ 67.0 $ — June 30, 2018 Investments in registered investment companies Equity $ 97.0 $ 74.0 $ 23.0 $ — Fixed Income 40.4 — 40.4 — Pooled separate accounts 1.6 — 1.6 — Total assets at fair value $ 139.0 $ 74.0 $ 65.0 $ — Fair value measurements for international pension plan assets were as follows: June 30, 2019 Total Fair Value Quoted Prices (Level 1) Significant Other Observable Inputs (Level 2) Significant Unobservable Inputs (Level 3) (In millions) Cash and cash equivalents $ 121.8 $ 119.5 $ 2.3 $ — Pooled investments Equity 60.0 — 60.0 — Fixed Income 393.9 — 393.9 — Other 296.4 — 296.4 — Guaranteed investment contract — — — — Total assets at fair value $ 872.1 $ 119.5 $ 752.6 $ — June 30, 2018 Cash and cash equivalents $ 17.6 $ 5.2 $ 12.4 $ — Pooled investments Equity 155.1 — 155.1 — Fixed Income 242.0 — 242.0 — Other 415.8 — 415.8 — Guaranteed investment contract 11.0 — 11.0 — Total assets at fair value $ 841.5 $ 5.2 $ 836.3 $ — The international pension plans hold investments in liability matching funds whose objective is to provide leveraged returns equal to that of the liabilities. In order to do so, these funds invest in the respective UK Treasury Gilt bonds, Gilt Total Return Swaps, Repurchase Transactions, and cash or money markets to provide liquidity to meet payment obligations or post as collateral in the derivative transactions they enter into. These liability matching funds are included in Other pooled investments in the table above. The Company primarily utilizes the market approach for determining recurring fair value. The fair value of the guaranteed investment contract has been determined based on the higher of the surrender value of the contract or the present value of the underlying bonds based on a discounted cash flow model. Refer to Note 10 for a discussion of the three levels in the hierarchy of fair values. Cash Flows Although the Company does not have a minimum funding requirement for the domestic pension plans in fiscal 2020 , the Company is currently determining what voluntary pension plan contributions, if any, will be made in fiscal 2020 to the domestic plan. Actual contributions will be dependent upon investment returns, changes in pension obligations, and other economic and regulatory factors. Meredith expects to contribute $0.6 million to its postretirement plan in fiscal 2020 . Monthly contributions of £0.9 million are required to be made to the IPC Plan. In the event that on November 25, 2021, the IPC Plan has a funding deficit valuing its liabilities with a gilts plus 50 basis point (bps) discount rate, the Company, as the sponsor of the IPC Plan, will make a contribution equal to that funding deficit. In the event that on November 25, 2025, the IPC Plan has a funding deficit valuing its liabilities with a gilts flat discount rate, the Company will make a contribution equal to 50 percent of that funding deficit. In the event that on November 25, 2026, the IPC Plan has a funding deficit valuing its liabilities with a gilts flat discount rate, the Company will make a contribution equal to 50 percent of that funding deficit. In the event that on November 25, 2027, the IPC Plan has a funding deficit valuing its liabilities with a gilts flat discount rate, the Company will make a contribution equal to that funding deficit. Contributions shall cease to be payable from the date that the IPC Plan is confirmed to be fully funded. The following benefit payments, which reflect expected future service as appropriate, are expected to be paid: Years ending June 30, Pension Benefits Postretirement Benefits (In millions) Domestic International Domestic 2020 $ 43.4 $ 15.0 $ 0.6 2021 17.3 16.2 0.6 2022 12.6 17.6 0.6 2023 13.1 18.1 0.6 2024 13.9 19.1 0.6 2025-2029 72.9 113.7 2.6 Other The Company maintains collateral assignment split-dollar life insurance arrangements on certain key officers and retirees. The net periodic pension cost for fiscal 2019 , 2018 , and 2017 was $0.2 million , $0.6 million , and $0.5 million , respectively, and the accrued liability at June 30, 2019 and 2018 , was $3.2 million and $3.1 million , respectively. |
Share-based Compensation
Share-based Compensation | 12 Months Ended |
Jun. 30, 2019 | |
Share-based Payment Arrangement [Abstract] | |
Share-based Compensation | 13. Share-based Compensation Meredith has a shareholder-approved stock incentive plan. More detailed descriptions of these plans follow. Compensation expense recognized for these plans was $22.9 million in fiscal 2019 , $30.4 million in fiscal 2018 , and $12.8 million in fiscal 2017 . The total income tax benefit recognized in earnings was $4.9 million in fiscal 2019 , $6.9 million in fiscal 2018 , and $4.8 million in fiscal 2017 . Stock Incentive Plan Meredith has a stock incentive plan that permits the Company to issue stock options, restricted stock, stock equivalent units, restricted stock units, and performance shares to key employees and directors of the Company. Approximately 7.4 million shares remained ava ilable for future awards under the plan as of June 30, 2019 . Forfeited awards, shares deemed to be delivered to us on tender of stock in payment for the exercise price of options, and shares reacquired pursuant to tax withholding on option exercises and the vesting of restricted shares and restricted stock units increase shares available for future awards. The plan is designed to provide an incentive to contribute to the achievement of long-range corporate goals; provide flexibility in motivating, attracting, and retaining employees; and to align more closely the employees’ interests with those of shareholders. The Company has awarded restricted stock and restricted stock units to eligible key employees and to non-employee directors under the plan. In addition, certain awards are granted based on specified levels of Company stock ownership. All awards have restriction periods tied primarily to employment and/or service. The awards granted to employees generally vest over 3 or 5 years and the awards granted to directors vest one-third each year during the three-year period from date of grant. The grant date of awards is the date the Compensation Committee of the Board of Directors approves the granting of the awards. The awards are recorded at the market value of traded shares on the date of the grant as unearned compensation. The initial values of the grants are amortized over the vesting periods. The Company’s restricted stock activity during the year ended June 30, 2019 , was as follows: Restricted Stock Shares Weighted Average Grant Date Fair Value Aggregate Intrinsic Value (Shares in thousands and Aggregate Intrinsic Value in millions) Nonvested at June 30, 2018 20.6 $ 48.94 Granted 11.6 58.76 Vested (13.5 ) 48.02 Nonvested at June 30, 2019 18.7 55.72 $ 1.0 As of June 30, 2019 , there was no unearned compensation cost related to restricted stock granted under the plan. The weighted average grant date fair value of restricted stock granted during the years ended June 30, 2019 , 2018 , and 2017 , was $58.76 , $52.00 , and $47.65 , respectively. The total fair value of shares vested during the years ended June 30, 2019 , 2018 , and 2017 was $0.8 million , $1.5 million , and $7.9 million , respectively. The Company’s restricted stock unit activity during the year ended June 30, 2019 , was as follows: Restricted Stock Units Units Weighted Average Grant Date Fair Value Aggregate Intrinsic Value (Units in thousands and Aggregate Intrinsic Value in millions) Nonvested at June 30, 2018 565.7 $ 49.78 Granted 266.6 52.55 Vested (250.9 ) 45.24 Forfeited (99.7 ) 51.42 Nonvested at June 30, 2019 481.7 53.34 $ 26.5 As of June 30, 2019 , there was $7.2 million of unearned compensation cost related to restricted stock units granted under the plan. That cost is expected to be recognized over a weighted average period of 1.8 years . The weighted average grant date fair value of restricted stock units granted during the years ended June 30, 2019 , 2018 , and 2017 was $52.55 , $47.26 , and $52.97 , respectively. The total fair value of shares vested during the years ended June 30, 2019 , 2018 , and 2017 was $13.0 million , $20.4 million , and $0.2 million , respectively. Meredith also has outstanding stock equivalent units resulting from the deferral of compensation of employees and directors under various deferred compensation plans. The period of deferral is specified when the deferral election is made. These stock equivalent units are issued at the market price of the underlying stock on the date of deferral. In addition, shares of restricted stock and restricted stock units may be converted to stock equivalent units upon vesting. The following table summarizes the activity for stock equivalent units during the year ended June 30, 2019 : Stock Equivalent Units Units Weighted Average Issue Date Fair Value Aggregate Intrinsic Value (Units in thousands and Aggregate Intrinsic Value in millions) Balance at June 30, 2018 319.1 $ 38.92 Additions 15.3 54.84 Converted to common stock (92.2 ) 38.92 Balance at June 30, 2019 242.2 39.92 $ 3.7 The total intrinsic value of stock equivalent units converted to common stock was $1.7 million in fiscal 2019 , $0.1 million in fiscal 2018 , and $0.2 million for fiscal year 2017 . Meredith has granted nonqualified stock options to certain employees and directors under the plan. The grant date of options issued is the date the Compensation Committee of the Board of Directors approves the granting of the options or a date thereafter as specified by the Committee. The exercise price of options granted is set at the fair value of the Company’s common stock on the grant date. All options granted under the plan expire at the end of 10 years . Options granted to employees vest 3 years from the date of grant and options granted to directors vest one-third each year during the three-year period from date of grant. A summary of stock option activity and weighted average exercise prices follows: Stock Options Options Weighted Average Exercise Price Weighted Average Remaining Contractual Term Aggregate Intrinsic Value (Options in thousands and Aggregate Intrinsic Value in millions) Outstanding July 1, 2018 2,421.2 $ 50.56 Granted 674.3 52.85 Exercised (109.8 ) 40.13 Forfeited (180.8 ) 52.29 Outstanding June 30, 2019 2,804.9 51.40 7.3 $ 12.6 Exercisable June 30, 2019 1,418.3 $ 48.25 6.3 $ 10.4 The fair value of each option is estimated as of the date of grant using the Black-Scholes option-pricing model. The expected volatility was based on historical volatility of the Company’s common stock, Meredith’s new capital structure (for options granted on or subsequent to January 31, 2018), and other factors. The expected life of options granted incorporates historical employee exercise and termination behavior. Different expected lives are used for separate groups of employees who have similar historical exercise patterns. The risk-free rate for periods that coincide with the expected life of the options is based on the U.S. Treasury yield curve in effect at the time of grant. The following summarizes the assumptions used in determining the fair value of options granted: Years ended June 30, 2019 2018 2017 Risk-free interest rate 2.3-3.0% 1.8-2.6% 1.3-2.1% Expected dividend yield 4 % 4 % 4 % Expected option life 6-6.5 yrs 4.9-7 yrs 7 yrs Expected stock price volatility 33-35% 28-36% 29 % The weighted average grant date f air value of options granted during the years ended June 30, 2019 , 2018 , and 2017 , wa s $12.26 , $13.58 , and $9.35 , respectively. The total intrinsic value of options exercised during the years ended June 30, 2019 , 2018 , and 2017 wa s $1.7 million , $10.9 million , and $15.2 million , respectively. A s of June 30, 2019 , there was $4.8 million in unrecognized compensation cost for stock options granted under the plan. This cost is expected to be recognized over a weighted average period of 1.5 years . Cash received from option exercises under all share-based payment plans for the years ended June 30, 2019 , 2018 , and 2017 was $4.4 million , $19.1 million , and $37.9 million , respectively. The actual tax benefit realized for the tax deductions from option exercises totaled $0.4 million , $2.7 million , and $5.9 million , respectively, for the years ended June 30, 2019 , 2018 , and 2017 . |
Redeemable Series A Preferred S
Redeemable Series A Preferred Stock | 12 Months Ended |
Jun. 30, 2019 | |
Temporary Equity Disclosure [Abstract] | |
Redeemable Series A Preferred Stock | 14. Redeemable Series A Preferred Stock Effective January 30, 2018, out of the total authorized 5,000,000 shares of preferred stock, par value $1.00 per share, the Company designated a series of 2,500,000 shares, which was issued in and constitutes a single series known as “Series A Preferred Stock” with each share having an initial stated value of $1,000 per share (the Series A preferred stock). On January 31, 2018, in exchange for a preferred equity investment of $650.0 million , Meredith issued 650,000 shares of perpetual convertible redeemable non-voting Series A preferred stock as well as detachable warrants to purchase up to 1,625,000 shares of Meredith’s common stock with an exercise price of $1.00 per share and options to purchase up to 875,000 shares of Meredith’s common stock with an exercise price of $70.50 per share. The Company has classified the Series A preferred stock as temporary equity in the Consolidated Balance Sheets. The Company allocated the net proceeds of $631.0 million ( $650.0 million aggregate gross proceeds received less $19.0 million in transaction costs) based on the relative aggregate fair values on the date of issuance as follows: $103.1 million to the warrants, $12.5 million to the options, and $515.4 million to the Series A preferred stock. The discount on the Series A preferred stock is being accreted using the effective interest method to retained earnings as a deemed dividend from the date of issuance through the seventh anniversary of the issuance date (i.e., the date the Series A preferred stock becomes convertible). The Series A preferred stock is non-callable during the first 3 years after issuance provided that Meredith may, at its option, subject to the terms of the Series A preferred stock, redeem all or any portion of the Series A preferred stock in cash during such three -year period, if Meredith declares as a dividend and pays a redemption premium in cash an amount equal to 6 percent of the Accrued Stated Value of the Series A preferred stock as of the redemption date plus an amount, if any, equal to dividends to the third year present valued at a discount rate based on U.S. Treasury notes with a maturity closest to the date that is three years after the issuance date, plus 50 basis points. The Accrued Stated Value is an amount equal to: (i) the Stated Value ( 1,000 multiplied by the number of shares of Series A preferred stock outstanding); plus (ii) any accrued and unpaid dividends thereof (including any accumulated dividends). From and after the third anniversary of the issuance date of the Series A preferred stock, Meredith may redeem all or any portion of the Series A preferred stock in cash for an amount equal to (i) the Call Premium (defined below), plus (ii) the Accrued Stated Value of the Series A preferred stock as of the redemption date. The Call Premium is an amount equal to the difference of (A) (i) the Accrued Stated Value of the Series A preferred stock as of the redemption date, multiplied by (ii) (a) if such redemption occurs during the fourth or fifth year after issuance, 106 percent , (b) if such redemption occurs during the sixth year after issuance, 103 percent , and (c) if such redemption occurs after the sixth year after issuance, 100 percent , minus (B) the Accrued Stated Value as of the redemption date. In connection with any partial redemption by Meredith, Meredith may not redeem Series A preferred stock in an amount less than $50.0 million of the Accrued Stated Value of the Series A preferred stock nor effect any redemption resulting in less than $100.0 million of the Accrued Stated Value of the Series A preferred stock remaining outstanding. From and after the seventh anniversary of the issuance date, the holders of the Series A preferred stock may elect to convert some or all of the Series A preferred stock into Meredith common stock at a ratio based on its Accrued Stated Value divided by the volume weighted average price of Meredith common stock for the 30 trading days immediately preceding the written notice of conversion. The Series A preferred stock accrues an annual dividend at either (a) to the extent paid in cash, an amount equal to the Cash Dividend Annual Rate (as set forth in the table below), multiplied by the Stated Value (equal to the number of shares of Series A preferred stock outstanding multiplied by $1,000 ) or (b) if dividends are not declared and paid in cash, the Company will deliver additional shares of Series A preferred stock, in kind, by issuing a number of shares equal to (i) the Accrued Dividend Annual Rate (as set forth in the table below), multiplied by the Stated Value for all outstanding shares of Series A preferred stock, divided by (ii) $1,000 . Year Cash Dividend Annual Rate Accrued Dividend Annual Rate Years 1 through 3 8.5% 9% Year 4 LIBOR plus 850 bps LIBOR plus 900 bps Year 5 LIBOR plus 950 bps LIBOR plus 1000 bps Year 6 through redemption LIBOR plus 1050 bps LIBOR plus 1100 bps The Series A preferred stock ranks senior to any other class or series of equity, including Meredith’s common stock and class B stock, with respect to dividend rights and rights upon liquidation. Dividends with respect to any quarter may only be paid all in cash or all in additional shares of Series A preferred stock, and may not be paid in a combination of cash and shares of Series A preferred stock. All Series A preferred stock dividends (regardless of whether paid in additional shares of Series A preferred stock or cash) are prior to and in preference over any dividend on any common stock or class B stock and will be declared and fully paid before any dividends are declared and paid, or any other distributions or redemptions are made, on any common stock or class B stock. |
Common Stock
Common Stock | 12 Months Ended |
Jun. 30, 2019 | |
Equity [Abstract] | |
Common Stock | 15. Common Stock The Company has two classes of common stock outstanding: common and class B. Each class receives equal dividends per share. Class B stock, which has 10 votes per share, is not transferable as class B stock except to family members of the holder or certain other related entities. At any time, class B stock is convertible, share for share, into common stock with one vote per share. Class B stock transferred to persons or entities not entitled to receive it as class B stock will automatically be converted and issued as common stock to the transferee. The principal market for trading the Company’s common stock is the New York Stock Exchange (trading symbol MDP). No separate public trading market exists for the Company’s class B stock. From time to time, the Company’s Board of Directors has authorized the repurchase of shares of the Company’s common stock and class B stock. In May 2014, the Board approved the repurchase of $100.0 million of shares. As of June 30, 2019 , $50.3 million remained available under the current authorizations for future repurchases. Repurchases of the Company’s common and class B stock are as follows: Years ended June 30, 2019 2018 2017 (In millions) Number of shares 0.2 0.5 0.9 Cost at market value $ 10.0 $ 31.1 $ 53.3 Shares deemed to be delivered to the Company on tender of stock in payment for the exercise price of options do not reduce the repurchase authority granted by the Board. Shares tendered for the exercise price of stock options were 0.1 million shares at a cost of $4.1 million in fiscal 2019 , 0.3 million shares at a cost of $19.1 million in fiscal 2018 , and 0.6 million shares at a cost of $37.5 million in fiscal 2017 . |
Earnings (Loss) Per Common Shar
Earnings (Loss) Per Common Share | 12 Months Ended |
Jun. 30, 2019 | |
Earnings Per Share [Abstract] | |
Earnings (Loss) Per Common Share | 16. Earnings (Loss) Per Common Share The calculation of basic earnings (loss) per common share for each year is based on the weighted average number of common and class B shares outstanding during the year. The calculation of diluted earnings (loss) per common share for each year is based on the weighted average number of common and class B shares outstanding during the year plus the effect, if any, of dilutive common stock equivalent shares. The following table presents the calculations of basic earnings (loss) per common share: Years ended June 30, 2019 2018 2017 (In millions except per share data) Net earnings $ 46.3 $ 99.4 $ 188.9 Participating warrants dividend (3.6 ) (1.8 ) — Preferred stock dividend (55.9 ) (22.9 ) — Accretion of Series A preferred stock (17.6 ) (7.2 ) — Other securities dividends (1.2 ) (1.1 ) — Basic earnings (loss) attributable to common shareholders $ (32.0 ) $ 66.4 $ 188.9 Basic weighted average common shares outstanding 45.3 44.9 44.6 Basic earnings (loss) per common share $ (0.71 ) $ 1.48 $ 4.23 Diluted earnings (loss) per common share reflects the potential dilution that could occur if securities or other contracts to issue common stock were exercised or converted into common stock. The dilutive effects of these share-based awards were computed using the two-class method. Years ended June 30, 2019 2018 2017 (In millions except per share data) Basic weighted average common shares outstanding 45.3 44.9 44.6 Dilutive effect of stock options and equivalents 0.2 0.3 0.8 Diluted weighted average common shares outstanding 45.5 45.2 45.4 Diluted earnings (loss) attributable to common shareholders $ (32.0 ) $ 66.4 $ 188.9 Diluted earnings (loss) per common share (0.70 ) 1.47 4.16 For the year ended June 30, 2019 , 0.2 million options were included in the computation of dilutive loss per common share while being antidilutive (the diluted loss per share becoming less negative than basic loss per share). These securities are dilutive (the dilutive earnings per common share becoming less than basic earnings per common share) when calculating the dilutive earnings per common share for income from continuing operations, which is the control number when determining the dilutive impact of securities in all earnings (loss) per common share calculations. Therefore, these securities are included in all diluted earnings (loss) per common share calculations for the year ended June 30, 2019 . In addition, 0.7 million convertible preferred shares, 1.6 million warrants, 0.3 million common stock equivalents, and 0.1 million shares of restricted stock were not included in the computation of dilutive earnings per common share. These securities have an antidilutive effect on the loss per common share calculation (the dilutive loss per common share becoming less negative than the basic loss per common share). Therefore, these securities are not taken into account in determining the weighted average number of common shares for the calculation of diluted earnings (loss) per common share for the year ended June 30, 2019 . For the year ended June 30, 2018 , 0.7 million convertible preferred shares, 0.7 million warrants, 0.3 million common stock equivalents, and 0.2 million shares of restricted stock were not included in the computation of dilutive earnings per common share. These securities have an antidilutive effect on the earnings per common share calculation (the diluted earnings per common share becoming higher than basic earnings per common share). Therefore, these securities are not taken into account in determining the weighted average number of common shares for the calculation of diluted earnings per share for the year ended June 30, 2018 . In addition, antidilutive options excluded from the above calculations totaled 2.5 million options for the year ended June 30, 2019 ( $63.86 weighted average exercise price), 0.8 million options for the year ended June 30, 2018 ( $62.71 weighted average exercise price), and 0.3 million options for the year ended June 30, 2017 ( $54.28 weighted average exercise price). In the years ended June 30, 2019 , 2018 and 2017 , options were exercised to purchase 0.1 million , 0.5 million , and 0.9 million common shares, respectively. |
Other Comprehensive Income (Los
Other Comprehensive Income (Loss) | 12 Months Ended |
Jun. 30, 2019 | |
Equity [Abstract] | |
Other Comprehensive Income (Loss) | 17. Other Comprehensive Income (Loss) Comprehensive income (loss) is defined as the change in equity during a period from transactions and other events and circumstances from nonowner sources. Comprehensive income (loss) includes net earnings as well as items of other comprehensive income (loss). The following table summarizes the items of other comprehensive income (loss) and the accumulated other comprehensive loss balances: Minimum Pension/Post Retirement Liability Adjustments Foreign Currency Translation Interest Accumulated (In millions) Balance at June 30, 2016 $ (24.1 ) $ — $ (4.4 ) $ (28.5 ) Current-year adjustments, pre-tax 8.6 — 6.8 15.4 Tax expense (3.3 ) — (2.6 ) (5.9 ) Other comprehensive income 5.3 — 4.2 9.5 Balance at June 30, 2017 (18.8 ) — (0.2 ) (19.0 ) Current-year adjustments, pre-tax (0.5 ) (12.9 ) 0.4 (13.0 ) Tax expense (0.3 ) — (0.4 ) (0.7 ) Other comprehensive loss (0.8 ) (12.9 ) — (13.7 ) Reclassification to retained earnings 1 (4.2 ) — 0.2 (4.0 ) Balance at June 30, 2018 (23.8 ) (12.9 ) — (36.7 ) Current-year adjustments, pre-tax (9.1 ) (2.8 ) — (11.9 ) Tax benefit 2.3 — — 2.3 Other comprehensive loss (6.8 ) (2.8 ) — (9.6 ) Balance at June 30, 2019 $ (30.6 ) $ (15.7 ) $ — $ (46.3 ) 1 Reclassification related to a one-time adjustment for the adoption of ASU 2018-02, Reclassification of Certain Tax Effects from Accumulated Other Comprehensive Income. |
Financial Information about Ind
Financial Information about Industry Segments | 12 Months Ended |
Jun. 30, 2019 | |
Segment Reporting [Abstract] | |
Financial Information about Industry Segments | 18. Financial Information about Industry Segments Meredith is a diversified media company focused primarily on service journalism. On the basis of products and services, the Company has established two reportable segments: national media and local media. The national media segment focuses on the distribution of our nationally recognized brands through magazine publishing, digital and mobile media, brand licensing, database-related activities, and other related operations. The local media segment consists primarily of the operations of network-affiliated television stations. Virtually all of the Company’s revenues are generated in the U.S. and substantially all of the assets reside within the U.S. Intersegment transactions are eliminated. There are two principal financial measures reported to the chief executive officer (the chief operating decision maker) for use in assessing segment performance and allocating resources. Those measures are operating profit and EBITDA. Operating profit for segment reporting, disclosed below, is revenues less operating costs and unallocated corporate expenses. Segment operating expenses include allocations of certain centrally incurred costs such as employee benefits, occupancy, information systems, accounting services, internal legal staff, and human resources administration. These costs are allocated based on actual usage or other appropriate methods, primarily number of employees. Unallocated corporate expenses are corporate overhead expenses not attributable to the operating groups. Interest income and expense are not allocated to the segments. In accordance with authoritative guidance on disclosures about segments of an enterprise and related information, EBITDA is not presented below. Significant non-cash items included in segment operating expenses other than depreciation and amortization of fixed and intangible assets include impairments of national media trademarks and the amortization of broadcast rights in the local media segment. Impairments of national media trademarks were $41.8 million in fiscal 2019 , $22.7 million in fiscal 2018 , and $5.3 million in fiscal 2017 . Broadcast rights amortization totaled $20.0 million in fiscal 2019 , $19.2 million in fiscal 2018 , and $17.6 million in fiscal 2017 . Segment assets include intangible, fixed, and all other non-cash assets identified with each segment. Jointly used assets such as office buildings and information technology equipment are allocated to the segments by appropriate methods, primarily number of employees. Unallocated corporate assets consist primarily of cash and cash items, assets allocated to or identified with corporate staff departments, and other miscellaneous assets not assigned to a segment. The following table presents financial information by segment: Years ended June 30, 2019 2018 2017 (In millions) Revenues National media $ 2,326.6 $ 1,572.6 $ 1,083.2 Local media 863.8 693.1 630.1 Total revenues, gross 3,190.4 2,265.7 1,713.3 Intersegment revenue elimination (1.9 ) (1.5 ) — Total revenue $ 3,188.5 $ 2,264.2 $ 1,713.3 Segment profit National media $ 126.0 $ 85.0 $ 146.4 Local media 278.3 186.7 211.6 Unallocated corporate (117.3 ) (184.8 ) (49.8 ) Income from operations 287.0 86.9 308.2 Non-operating income, net 24.2 0.7 0.9 Interest expense, net (170.6 ) (97.2 ) (18.8 ) Earnings (loss) from continuing operations before income taxes $ 140.6 $ (9.6 ) $ 290.3 Depreciation and amortization National media $ 206.5 $ 92.9 $ 17.5 Local media 36.6 33.2 34.8 Unallocated corporate 4.5 2.9 1.5 Total depreciation and amortization $ 247.6 $ 129.0 $ 53.8 Assets National media $ 4,606.8 $ 5,202.0 $ 1,487.1 Local media 1,192.3 1,204.6 1,124.9 Unallocated corporate 337.8 364.3 117.7 Total assets $ 6,136.9 $ 6,770.9 $ 2,729.7 Capital expenditures National media $ 13.0 $ 11.0 $ 4.5 Local media 25.1 21.0 12.2 Unallocated corporate 8.3 21.2 18.1 Total capital expenditures $ 46.4 $ 53.2 $ 34.8 |
Issuer, Guarantor, and Non-Guar
Issuer, Guarantor, and Non-Guarantor Condensed Consolidating Financial Information | 12 Months Ended |
Jun. 30, 2019 | |
Condensed Financial Information Disclosure [Abstract] | |
Issuer, Guarantor, and Non-Guarantor Condensed Consolidating Financial Information | 19. Issuer, Guarantor and Non-Guarantor Condensed Consolidating Financial Information The 2026 Senior Notes are general unsecured senior obligations of Meredith Corporation (Parent Issuer) and are guaranteed on a full, unconditional, joint, and several basis, by the combined “Guarantor Subsidiaries.” Other subsidiaries (the Non-Guarantor Subsidiaries) largely represent the international operations of the Company and subsidiaries that have been disposed of prior to June 30, 2018, which do not guarantee the Senior Notes. Under the terms of the indentures, Meredith Corporation and the Guarantor Subsidiaries each fully and unconditionally, jointly and severally, guarantee the payment of interest, principal and premium, if any, on each of the notes included in the 2026 Senior Notes. The following condensed consolidating financial information presents the condensed consolidated balance sheets as of June 30, 2019 and 2018 , and the related condensed consolidated statements of comprehensive income and cash flows for each of the years in the three-year period ended June 30, 2019 , for Meredith Corporation (Parent Issuer), Guarantor Subsidiaries, and Non-Guarantor Subsidiaries. The condensed consolidating financial information is presented using the equity method of accounting for all periods presented. The Guarantor Subsidiaries are presented on a combined basis. Elimination entries relate primarily to elimination of investments in subsidiaries and associated intercompany balances and transactions. Meredith Corporation and Subsidiaries Condensed Consolidated Balance Sheet As of June 30, 2019 Meredith Corporation (Parent Issuer) Guarantor Subsidiaries Non-Guarantor Subsidiaries Eliminations Consolidated (In millions) Current assets Cash and cash equivalents $ 30.3 $ 3.2 $ 11.5 $ — $ 45.0 Accounts receivable, net 327.5 267.4 14.2 — 609.1 Inventories 53.7 8.9 0.1 — 62.7 Current portion of subscription acquisition costs 91.5 156.8 — (6.3 ) 242.0 Current portion of broadcast rights 4.9 2.2 — — 7.1 Assets held-for-sale — 208.8 112.2 — 321.0 Other current assets 46.5 14.1 2.6 — 63.2 Total current assets 554.4 661.4 140.6 (6.3 ) 1,350.1 Net property, plant, and equipment 340.8 107.8 1.7 — 450.3 Subscription acquisition costs 152.3 121.6 — — 273.9 Broadcast rights 4.8 1.2 — — 6.0 Other assets 55.8 28.8 179.0 — 263.6 Intangible assets, net 627.7 1,181.0 4.9 — 1,813.6 Goodwill 614.8 1,317.6 47.0 — 1,979.4 Intercompany receivable 470.5 10,352.3 7,958.6 (18,781.4 ) — Intercompany notes receivable — 215.5 0.2 (215.7 ) — Investment in subsidiaries 3,874.5 983.0 — (4,857.5 ) — Total assets $ 6,695.6 $ 14,970.2 $ 8,332.0 $ (23,860.9 ) $ 6,136.9 Liabilities, Redeemable Convertible Preferred Stock, and Shareholders’ Equity Current liabilities Current portion of long-term broadcast rights payable $ 4.5 $ 2.1 $ — $ — $ 6.6 Accounts payable 141.5 90.4 10.7 — 242.6 Accrued expenses 190.9 105.1 4.6 — 300.6 Current portion of unearned revenues 183.2 277.7 3.8 (5.8 ) 458.9 Liabilities associated with assets held-for-sale — 190.8 61.3 — 252.1 Total current liabilities 520.1 666.1 80.4 (5.8 ) 1,260.8 Long-term debt 2,333.3 — — — 2,333.3 Long-term broadcast rights payable 6.7 1.7 — — 8.4 Unearned revenues 155.7 162.9 — — 318.6 Deferred income taxes 221.8 266.2 18.2 — 506.2 Other noncurrent liabilities 91.0 84.2 19.6 — 194.8 Investment in subsidiaries — — 74.8 (74.8 ) — Intercompany payable 1,852.2 9,105.0 7,824.2 (18,781.4 ) — Intercompany notes payable — 0.2 215.5 (215.7 ) — Total liabilities 5,180.8 10,286.3 8,232.7 (19,077.7 ) 4,622.1 Redeemable, convertible Series A preferred stock 540.2 — — — 540.2 Shareholders’ equity 974.6 4,683.9 99.3 (4,783.2 ) 974.6 Total liabilities, redeemable convertible preferred stock, and shareholders’ equity $ 6,695.6 $ 14,970.2 $ 8,332.0 $ (23,860.9 ) $ 6,136.9 Meredith Corporation and Subsidiaries Condensed Consolidated Balance Sheet As of June 30, 2018 Assets Meredith Corporation (Parent Issuer) Guarantor Subsidiaries Non-Guarantor Subsidiaries Eliminations Consolidated (In millions) Current assets Cash and cash equivalents $ 195.0 $ 202.8 $ 39.8 $ — $ 437.6 Accounts receivable, net 223.5 333.2 — (11.5 ) 545.2 Inventories 23.6 20.7 0.1 — 44.4 Current portion of subscription acquisition costs 107.0 38.0 — — 145.0 Current portion of broadcast rights 7.7 2.1 — — 9.8 Assets held-for-sale — 654.6 65.2 — 719.8 Other current assets 55.3 37.6 22.0 — 114.9 Total current assets 612.1 1,289.0 127.1 (11.5 ) 2,016.7 Net property, plant, and equipment 162.4 318.1 3.2 — 483.7 Subscription acquisition costs 57.1 9.2 — — 66.3 Broadcast rights 16.9 2.0 — — 18.9 Deferred income taxes — — 6.3 (6.3 ) — Other assets 60.4 5.4 197.5 — 263.3 Intangible assets, net 676.2 1,329.0 1.0 — 2,006.2 Goodwill 614.7 1,266.9 34.2 — 1,915.8 Intercompany receivable 11.8 8,086.1 7,773.2 (15,871.1 ) — Intercompany note receivable — 204.7 — (204.7 ) — Investment in subsidiaries 3,844.5 1,050.6 — (4,895.1 ) — Total assets $ 6,056.1 $ 13,561.0 $ 8,142.5 $ (20,988.7 ) $ 6,770.9 Liabilities and Shareholders’ Equity Current liabilities Current portion of long-term debt $ 17.7 $ — $ — $ — $ 17.7 Current portion of long-term broadcast rights payable 6.9 2.0 — — 8.9 Accounts payable 67.2 95.4 44.0 (11.5 ) 195.1 Accrued expenses 142.6 263.4 4.6 — 410.6 Current portion of unearned revenues 171.5 213.4 7.7 0.9 393.5 Liabilities associated with assets held-for-sale — 125.8 74.2 — 200.0 Total current liabilities 405.9 700.0 130.5 (10.6 ) 1,225.8 Long-term debt 3,117.9 — — — 3,117.9 Long-term broadcast rights payable 18.3 2.5 — — 20.8 Unearned revenues 82.3 50.2 (0.2 ) — 132.3 Deferred income taxes 209.5 233.8 — (6.3 ) 437.0 Other noncurrent liabilities 99.4 97.8 19.8 — 217.0 Investment in subsidiaries — — 58.8 (58.8 ) — Intercompany payable 502.7 7,846.4 7,522.0 (15,871.1 ) — Intercompany notes payable — — 204.7 (204.7 ) — Total liabilities 4,436.0 8,930.7 7,935.6 (16,151.5 ) 5,150.8 Redeemable, convertible Series A preferred stock 522.6 — — — 522.6 Shareholders’ equity 1,097.5 4,630.3 206.9 (4,837.2 ) 1,097.5 Total liabilities, redeemable convertible preferred stock, and shareholders’ equity $ 6,056.1 $ 13,561.0 $ 8,142.5 $ (20,988.7 ) $ 6,770.9 Meredith Corporation and Subsidiaries Condensed Consolidated Statement of Comprehensive Income For the Year Ended June 30, 2019 Meredith Corporation Guarantor Non-Guarantor Eliminations Consolidated (In millions) Revenues Advertising related $ 602.2 $ 1,077.0 $ 7.8 $ (0.4 ) $ 1,686.6 Consumer related 536.9 884.0 42.7 (70.0 ) 1,393.6 All other 49.0 77.5 13.8 (32.0 ) 108.3 Total revenues 1,188.1 2,038.5 64.3 (102.4 ) 3,188.5 Operating expenses Production, distribution, and editorial 510.8 712.9 28.5 (91.0 ) 1,161.2 Selling, general, and administrative 555.0 800.9 5.9 (11.8 ) 1,350.0 Acquisition, disposition, and restructuring related activities 34.0 56.8 10.1 — 100.9 Depreciation and amortization 44.0 201.0 2.6 — 247.6 Impairment of long-lived assets 39.8 2.0 — — 41.8 Total operating expenses 1,183.6 1,773.6 47.1 (102.8 ) 2,901.5 Income from operations 4.5 264.9 17.2 0.4 287.0 Non-operating income, net 3.6 9.5 11.1 — 24.2 Interest income (expense), net (172.2 ) 14.9 (13.3 ) — (170.6 ) Earnings (loss) from continuing operations before income taxes (164.1 ) 289.3 15.0 0.4 140.6 Income tax benefit (expense) 34.4 (42.5 ) (3.4 ) — (11.5 ) Earnings (loss) from continuing operations (129.7 ) 246.8 11.6 0.4 129.1 Gain (loss) from discontinued operations, net of income taxes — (104.1 ) 21.3 — (82.8 ) Earnings (loss) before equity income (loss) (129.7 ) 142.7 32.9 0.4 46.3 Earnings (loss) from equity in subsidiaries 176.0 (65.5 ) (13.7 ) (96.8 ) — Net earnings $ 46.3 $ 77.2 $ 19.2 $ (96.4 ) $ 46.3 Total comprehensive income $ 41.6 $ 77.2 $ 14.3 $ (96.4 ) $ 36.7 Meredith Corporation and Subsidiaries Condensed Consolidated Statement of Comprehensive Income For the Year Ended June 30, 2018 Meredith Corporation Guarantor Non-Guarantor Eliminations Consolidated (In millions) Revenues Advertising related $ 625.7 $ 561.3 $ 3.7 $ — $ 1,190.7 Consumer related 545.9 414.8 21.6 (61.0 ) 921.3 All other 33.2 58.5 87.3 (26.8 ) 152.2 Total revenues 1,204.8 1,034.6 112.6 (87.8 ) 2,264.2 Operating expenses Production, distribution, and editorial 488.7 420.4 42.1 (83.2 ) 868.0 Selling, general, and administrative 509.5 432.1 49.7 (3.8 ) 987.5 Acquisition, disposition, and restructuring related activities 58.4 111.7 — — 170.1 Depreciation and amortization 33.3 94.4 1.3 — 129.0 Impairment of long-lived assets 22.7 — — — 22.7 Total operating expenses 1,112.6 1,058.6 93.1 (87.0 ) 2,177.3 Income (loss) from operations 92.2 (24.0 ) 19.5 (0.8 ) 86.9 Non-operating income (expense), net (9.1 ) 0.6 9.2 — 0.7 Interest income (expense), net (95.4 ) 7.2 (9.0 ) — (97.2 ) Earnings (loss) from continuing operations before income taxes (12.3 ) (16.2 ) 19.7 (0.8 ) (9.6 ) Income taxes benefit (expense) 116.6 8.4 (1.4 ) — 123.6 Earnings (loss) from continuing operations 104.3 (7.8 ) 18.3 (0.8 ) 114.0 Gain (loss) from discontinued operations, net of income taxes (12.2 ) 18.6 (21.0 ) — (14.6 ) Earnings (loss) before equity income (loss) 92.1 10.8 (2.7 ) (0.8 ) 99.4 Earnings (loss) from equity in subsidiaries 7.3 6.9 (10.7 ) (3.5 ) — Net earnings (loss) $ 99.4 $ 17.7 $ (13.4 ) $ (4.3 ) $ 99.4 Total comprehensive income (loss) $ 101.5 $ 17.7 $ (29.2 ) $ (4.3 ) $ 85.7 Meredith Corporation and Subsidiaries Condensed Consolidated Statement of Comprehensive Income For the Year Ended June 30, 2017 Meredith Corporation Guarantor Non-Guarantor Eliminations Consolidated (In millions) Revenues Advertising related $ 671.6 $ 260.7 $ 1.8 $ — $ 934.1 Consumer related 524.6 78.6 10.3 — 613.5 All other 42.9 1.8 121.0 — 165.7 Total revenues 1,239.1 341.1 133.1 — 1,713.3 Operating expenses Production, distribution, and editorial 477.1 100.2 31.1 — 608.4 Selling, general, and administrative 538.6 105.4 82.4 — 726.4 Acquisition, disposition, and restructuring related activities 8.3 — 2.0 — 10.3 Depreciation and amortization 37.6 15.7 0.5 — 53.8 Impairment of goodwill and other long-lived assets 0.9 5.3 — — 6.2 Total operating expenses 1,062.5 226.6 116.0 — 1,405.1 Income from operations 176.6 114.5 17.1 — 308.2 Non-operating income, net 0.9 — — — 0.9 Interest expense, net (14.2 ) — (4.6 ) — (18.8 ) Earnings before income taxes 163.3 114.5 12.5 — 290.3 Income tax expense (51.7 ) (45.5 ) (4.2 ) — (101.4 ) Earnings before equity income 111.6 69.0 8.3 — 188.9 Earnings from equity in subsidiaries 77.3 — — (77.3 ) — Net earnings $ 188.9 $ 69.0 $ 8.3 $ (77.3 ) $ 188.9 Total comprehensive income $ 198.4 $ 69.0 $ 8.3 $ (77.3 ) $ 198.4 Meredith Corporation and Subsidiaries Condensed Consolidated Statement of Cash Flows For the Year Ended June 30, 2019 Meredith Corporation Guarantor Non-Guarantor Eliminations Consolidated (In millions) Cash flows from operating activities $ (0.3 ) $ 403.8 $ (158.2 ) $ — $ 245.3 Cash flows from investing activities Acquisition of and investments in businesses, net of cash acquired (18.4 ) — — — (18.4 ) Proceeds from disposition of assets, net of cash sold 13.3 334.5 1.3 — 349.1 Proceeds received in advance of sale of business — 90.0 — — 90.0 Additions to property, plant, and equipment (37.5 ) (8.8 ) (0.1 ) — (46.4 ) Net cash provided by (used in) investing activities (42.6 ) 415.7 1.2 — 374.3 Cash flows from financing activities Proceeds from issuance of long-term debt 210.0 — — — 210.0 Repayments of long-term debt (1,037.0 ) — — — (1,037.0 ) Dividends paid (161.9 ) — — — (161.9 ) Purchases of Company stock (10.0 ) — — — (10.0 ) Proceeds from common stock issued 4.6 — — — 4.6 Payment of acquisition related contingent consideration (19.3 ) — — — (19.3 ) Net increase (decrease) in intercompany obligations 891.8 (1,019.1 ) 127.3 — — Net cash provided by (used in) financing activities (121.8 ) (1,019.1 ) 127.3 — (1,013.6 ) Effect of exchange rate changes on cash and cash equivalents — — (1.4 ) — (1.4 ) Change in cash held-for-sale — — 2.8 — 2.8 Net decrease in cash and cash equivalents (164.7 ) (199.6 ) (28.3 ) — (392.6 ) Cash and cash equivalents at beginning of year 195.0 202.8 39.8 — 437.6 Cash and cash equivalents at end of year $ 30.3 $ 3.2 $ 11.5 $ — $ 45.0 Meredith Corporation and Subsidiaries Condensed Consolidated Statement of Cash Flows For the Year Ended June 30, 2018 Meredith Corporation Guarantor Non-Guarantor Eliminations Consolidated (In millions) Cash flows from operating activities $ (465.4 ) $ 515.3 $ 100.0 $ — $ 149.9 Cash flows from investing activities Acquisition of and investments in businesses, net of cash acquired (2,786.5 ) — — — (2,786.5 ) Proceeds from disposition of assets, net of cash sold 86.4 — 132.8 — 219.2 Additions to property, plant, and equipment (41.2 ) (11.6 ) (0.4 ) — (53.2 ) Other 3.8 — — — 3.8 Net cash provided by (used in) investing activities (2,737.5 ) (11.6 ) 132.4 — (2,616.7 ) Cash flows from financing activities Proceeds from issuance of long-term debt 3,260.0 — — — 3,260.0 Repayments of long-term debt (689.7 ) — (75.4 ) — (765.1 ) Issued preferred stock, warrants, and options proceeds, net of issuance costs 631.0 — — — 631.0 Dividends paid (121.5 ) — — — (121.5 ) Purchases of Company stock (31.1 ) — — — (31.1 ) Proceeds from common stock issued 19.3 — — — 19.3 Payment of acquisition related contingent consideration (3.2 ) (1.1 ) — — (4.3 ) Debt acquisition costs (70.8 ) — — — (70.8 ) Net increase (decrease) in intercompany obligations 382.1 (299.8 ) (82.3 ) — — Net cash provided by (used in) financing activities 3,376.1 (300.9 ) (157.7 ) — 2,917.5 Effect of exchange rate changes on cash and cash equivalents — — (4.1 ) — (4.1 ) Change in cash held for sale — — (31.3 ) — (31.3 ) Net increase in cash and cash equivalents 173.2 202.8 39.3 — 415.3 Cash and cash equivalents at beginning of year 21.8 — 0.5 — 22.3 Cash and cash equivalents at end of year $ 195.0 $ 202.8 $ 39.8 $ — $ 437.6 Meredith Corporation and Subsidiaries Condensed Consolidated Statement of Cash Flows For the Year Ended June 30, 2017 Meredith Corporation Guarantor Non-Guarantor Eliminations Consolidated (In millions) Cash flows from operating activities $ 240.0 $ 22.8 $ (44.2 ) $ — $ 218.6 Cash flows from investing activities Acquisition of and investments in businesses, net of cash acquired (84.4 ) — — — (84.4 ) Proceeds from disposition of assets, net of cash sold 1.5 — — — 1.5 Additions to property, plant, and equipment (28.8 ) (6.0 ) — — (34.8 ) Net cash used in investing activities (111.7 ) (6.0 ) — — (117.7 ) Cash flows from financing activities Proceeds from issuance of long-term debt 365.0 — 15.0 — 380.0 Repayments of long-term debt (354.4 ) — (20.0 ) — (374.4 ) Dividends paid (91.9 ) — — — (91.9 ) Purchases of Company stock (53.3 ) — — — (53.3 ) Proceeds from common stock issued 38.0 — — — 38.0 Excess tax benefits from share-based payments 6.8 — — — 6.8 Payment of acquisition related contingent consideration (7.3 ) — — — (7.3 ) Debt acquisition costs (1.5 ) — — — (1.5 ) Net increase (decrease) in intercompany obligations (32.1 ) (16.8 ) 48.9 — — Net cash provided by (used in) financing activities (130.7 ) (16.8 ) 43.9 — (103.6 ) Net decrease in cash and cash equivalents (2.4 ) — (0.3 ) — (2.7 ) Cash and cash equivalents at beginning of year 24.2 — 0.8 — 25.0 Cash and cash equivalents at end of year $ 21.8 $ — $ 0.5 $ — $ 22.3 |
Selected Quarterly Financial Da
Selected Quarterly Financial Data (unaudited) | 12 Months Ended |
Jun. 30, 2019 | |
Selected Quarterly Financial Information [Abstract] | |
Selected Quarterly Financial Data (unaudited) | 20. Selected Quarterly Financial Data (unaudited) Year ended June 30, 2019 First Quarter Second Quarter Third Quarter Fourth Quarter Total (In millions except per share data) Revenues National media $ 560.6 $ 616.2 $ 562.3 $ 587.5 $ 2,326.6 Local media 214.4 262.4 188.4 198.6 863.8 Intersegment elimination (0.6 ) (0.2 ) (0.6 ) (0.5 ) (1.9 ) Total revenues $ 774.4 $ 878.4 $ 750.1 $ 785.6 $ 3,188.5 Operating profit National media $ 18.1 $ 47.0 $ 54.5 $ 6.4 $ 126.0 Local media 67.5 106.6 41.6 62.6 278.3 Unallocated corporate (31.4 ) (19.9 ) (20.5 ) (45.5 ) (117.3 ) Income from operations $ 54.2 $ 133.7 $ 75.6 $ 23.5 $ 287.0 Earnings (loss) from continuing operations $ 16.2 $ 88.1 $ 28.4 $ (3.6 ) 129.1 Discontinued operations 0.8 (69.5 ) (4.7 ) (9.4 ) (82.8 ) Net earnings (loss) $ 17.0 $ 18.6 $ 23.7 $ (13.0 ) $ 46.3 Basic earnings (loss) per share attributable to common shareholders Earnings (loss) from continuing operations $ (0.07 ) $ 1.50 $ 0.20 $ (0.51 ) $ 1.12 Net earnings (loss) (0.06 ) (0.03 ) 0.10 (0.72 ) (0.71 ) Diluted earnings (loss) per share attributable to common shareholders Earnings (loss) from continuing operations (0.07 ) 1.46 0.20 (0.51 ) 1.12 Net earnings (loss) (0.06 ) (0.01 ) 0.10 (0.72 ) (0.70 ) Dividends per share 0.545 0.545 0.575 0.575 2.240 In the first quarter of fiscal 2019, the Company recorded $23.4 million related to acquisition, disposition, and restructuring related costs. These charges were partially offset by a gain on the sale the Company’s remaining 30 percent interest in Charleston Tennis LLC of $10.4 million . The Company recorded $27.7 million related to acquisition, disposition, and restructuring related costs and a loss on the extinguishment of debt of $9.8 million in the second quarter of fiscal 2019. In the third quarter of fiscal 2019, the Company recorded $16.8 million related to acquisition, disposition, and restructuring related costs. The Company recorded an additional $39.3 million in acquisition, disposition, and restructuring related costs, and a $41.8 million impairment of trademarks in the fourth quarter of fiscal 2019. Since its acquisition on January 31, 2018, as part of Time, the Money brand had been included in discontinued operations as it had been held for sale. In the fourth quarter of fiscal 2019, due to a change in vision, the decision was made to retain the Money brand. As such, the operations of the Money brand have been reclassified as continuing operations and results from the date of acquisition have been adjusted to reflect this change. Year ended June 30, 2018 First Quarter Second Quarter Third Quarter Fourth Quarter Total (In millions except per share data) Revenues National media $ 239.0 $ 247.4 $ 485.6 $ 600.6 $ 1,572.6 Local media 153.8 170.3 170.1 198.9 693.1 Intersegment elimination — — (0.7 ) (0.8 ) (1.5 ) Total revenues $ 392.8 $ 417.7 $ 655.0 $ 798.7 $ 2,264.2 Operating profit National media $ 27.5 $ 11.6 $ 4.5 $ 41.4 $ 85.0 Local media 40.3 49.9 38.3 58.2 186.7 Unallocated corporate (11.6 ) (24.8 ) (115.3 ) (33.1 ) (184.8 ) Income (loss) from operations $ 56.2 $ 36.7 $ (72.5 ) $ 66.5 $ 86.9 Earnings (loss) from continuing operations $ 33.4 $ 159.4 $ (95.4 ) $ 16.6 $ 114.0 Discontinued operations — — (14.9 ) 0.3 (14.6 ) Net earnings (loss) $ 33.4 $ 159.4 $ (110.3 ) $ 16.9 $ 99.4 Basic earnings (loss) per share attributable to common shareholders Earnings (loss) from continuing operations $ 0.75 $ 3.55 $ (2.41 ) $ (0.06 ) $ 1.80 Net earnings (loss) 0.75 3.55 (2.74 ) (0.06 ) 1.48 Diluted earnings (loss) per share attributable to common shareholders Earnings (loss) from continuing operations 0.73 3.49 (2.41 ) (0.06 ) 1.79 Net earnings (loss) 0.73 3.49 (2.74 ) (0.06 ) 1.47 Dividends per share 0.520 0.520 0.545 0.545 2.130 In the second quarter of fiscal 2018, the Company recorded an impairment of a trademark of $19.8 million , transaction expenses associated with the Acquisition of $12.1 million , and a $3.1 million pre-tax restructuring charge. In the third quarter of fiscal 2018, the Company recorded $153.0 million in costs related to acquisition, disposition, and restructuring related costs associated with the Acquisition, and a $12.9 million loss on an equity method investment. In addition, the quarter’s results include two-months of contribution from the acquired Time properties. The fourth quarter was the first full quarter in which the acquired Time properties’ operations were included in the results. The Company recorded an additional $31.1 million in acquisition, disposition, and restructuring related costs, and a $2.9 million impairment of a trademark. These charges were partially offset by a gain on the sale of MXM of $11.5 million . As a result of changes in shares outstanding during the year as well as the issuance of Series A preferred stock on January 31, 2018, the sum of the four quarters’ earnings per share may not necessarily equal the earnings per share for the year. See Note 14 for additional information on the Series A preferred stock and Note 16 for detail on the calculation of earnings per share. |
Schedule II - Valuation and Qua
Schedule II - Valuation and Qualifying Accounts | 12 Months Ended |
Jun. 30, 2019 | |
SEC Schedule, 12-09, Valuation and Qualifying Accounts [Abstract] | |
Valuation and Qualifying Accounts | SCHEDULE II-VALUATION AND QUALIFYING ACCOUNTS Additions Reserves Deducted from Receivables in the Consolidated Financial Statements: Balance at beginning of period Acquired Charged to costs and expenses Charged to other accounts Deductions Balance at end of period (In millions) Fiscal year ended June 30, 2019 Reserve for doubtful accounts $ 12.2 $ — $ 4.8 $ — $ (1.6 ) $ 15.4 Reserve for returns 2.2 — 8.8 3.4 1 (9.3 ) 5.1 Income tax valuation allowance 21.1 — 0.6 — — 21.7 Total $ 35.5 $ — $ 14.2 $ 3.4 $ (10.9 ) $ 42.2 Fiscal year ended June 30, 2018 Reserve for doubtful accounts $ 6.5 $ — $ 12.5 $ — $ (6.8 ) $ 12.2 Reserve for returns 1.5 — 3.1 — (2.4 ) 2.2 Income tax valuation allowance — 21.4 — — (0.3 ) 21.1 Total $ 8.0 $ 21.4 $ 15.6 $ — $ (9.5 ) $ 35.5 Fiscal year ended June 30, 2017 Reserve for doubtful accounts $ 7.0 $ — $ 4.5 $ — $ (5.0 ) $ 6.5 Reserve for returns 1.3 — 4.0 — (3.8 ) 1.5 Total $ 8.3 $ — $ 8.5 $ — $ (8.8 ) $ 8.0 1 As a result of the Company's adoption of ASC 606 effective July 1, 2018, the Company recorded a reserve for underperformance of spot advertising of $3.4 million using the modified retrospective method. See Note 1 and Note 11 for further information on the adoption of ASC 606. |
Summary of Significant Accoun_2
Summary of Significant Accounting Policies (Policies) | 12 Months Ended |
Jun. 30, 2019 | |
Accounting Policies [Abstract] | |
Basis of Presentation | The consolidated financial statements include the accounts of Meredith and its wholly-owned and majority-owned subsidiaries, after eliminating all significant intercompany balances and transactions. The results of operations include those of Time Inc. (Time) since the date of acquisition (the Acquisition). See Note 2 for further discussion. Meredith does not have any off-balance sheet arrangements. The Company’s use of special-purpose entities was limited to Meredith Funding Corporation, whose activities were fully consolidated in Meredith’s consolidated financial statements until the termination of its asset lending facility on January 31, 2018. The financial position and operating results of the Company’s foreign operations are consolidated using primarily the local currency as the functional currency. Local currency assets and liabilities are translated at the rates of exchange as of the balance sheet date, and local currency revenues and expenses are translated at average rates of exchange during the period. Translation gains or losses on assets and liabilities are included as a component of accumulated other comprehensive loss. |
Use of Estimates | The preparation of financial statements in conformity with accounting principles generally accepted in the United States of America (U.S. GAAP) requires management to make estimates and assumptions that affect the amounts reported in the consolidated financial statements. The Company bases its estimates on historical experience, management expectations for future performance, and other assumptions as appropriate. Key areas affected by estimates include the allowance for doubtful accounts, which is based on historical experience and management’s views on trends in the overall receivable aging, the assessment of the recoverability of long-lived assets, including goodwill and other intangible assets, which is based on such factors as estimated future cash flows; the determination of the net realizable value of broadcast rights, which is based on estimated future revenues; pension and postretirement benefit expenses, which are determined based, in large part, on actuarial assumptions regarding discount rates, expected returns on plan assets, and healthcare costs; and share-based compensation expense, which is based on numerous assumptions including future stock price volatility and employees’ expected exercise and post-vesting employment termination behavior. While the Company re-evaluates its estimates on an ongoing basis, actual results may vary from those estimates. |
Reclassifications | Certain prior years’ amounts have been reclassified to conform to fiscal 2019 presentation. |
Cash and Cash Equivalents | Cash and short-term investments with original maturities of 3 months or less are considered to be cash and cash equivalents. Cash and cash equivalents are stated at cost, which approximates fair value. |
Concentration of Credit Risk | Financial instruments that potentially subject the Company to concentrations of credit risk are primarily cash and cash equivalent deposits. Cash equivalent balances consist of money market mutual funds with original maturities of three months or less. These cash and cash equivalent deposits are maintained with several financial institutions. The deposits held at the various financial institutions may exceed federally insured limits. Exposure to this credit risk is reduced by placing such deposits with major financial institutions and monitoring their credit ratings and, therefore, these deposits bear minimal credit risk. There is also limited credit risk with respect to the money market mutual funds in which the Company invests as these funds all have issuers, guarantors, and/or other counterparties of reputable credit. |
Accounts Receivable | The Company’s accounts receivable are primarily due from advertisers. Credit is extended to clients based on an evaluation of each client’s creditworthiness and financial condition; collateral is not required. The Company maintains allowances for uncollectible accounts, rebates, rate adjustments, returns, and discounts. The allowance for uncollectible accounts is based on the aging of such receivables and any known specific collectability exposures. Accounts are written off when deemed uncollectible. Allowances for rebates, rate adjustments, returns, and discounts are generally based on historical experience and current market conditions. Concentration of credit risk with respect to accounts receivable is generally limited due to the large number of geographically diverse clients and individually small balances. |
Inventories | Inventories are stated at the lower of cost or net realizable value. Effective January 1, 2018, the Company changed its method of accounting for paper inventory in the national media segment from the last-in, first-out (LIFO) method to the weighted average cost method. The Company believes that the weighted average cost method of accounting for paper inventory is preferable because it provides a better match of production costs with revenues considering the limited volatility in paper prices due to the short production cycle. The effect of the change was not considered material to the previously issued consolidated financial statements and, as such, was adopted prospectively as of January 1, 2018. The cumulative effect of the change recorded in the third quarter of fiscal 2018 was $1.3 million representing the removal of the LIFO costs reserve. This adjustment was recorded to the production, distribution, and editorial line within the Consolidated Statements of Earnings. Cost is determined on the first-in first-out or average basis for all other inventories. |
Subscription Acquisition Costs | Subscription acquisition costs primarily represent magazine agency commissions. These costs are deferred and amortized over the related subscription term, typically one to two years |
Property, Plant, and Equipment | Property, plant, and equipment are stated at cost with the exception of the property, plant, and equipment that was recorded at estimated fair value as of January 31, 2018, as a result of the Acquisition. Additions to that acquired property, plant, and equipment since January 31, 2018, are stated at cost. Costs of replacements and major improvements are capitalized, while costs of maintenance and repairs are charged to operations as incurred. Depreciation expense is determined primarily using the straight-line method over the estimated useful lives of the assets: 5 - 45 years for buildings and improvements, 3 - 6 years for capitalized software, and 3 - 20 years |
Broadcast Rights | Broadcast rights consist principally of rights to broadcast syndicated programs, sports, and feature films. The total cost of these rights is recorded as an asset and as a liability when programs become available for broadcast. The current portion of broadcast rights represents those rights available for broadcast that are expected to be amortized in the succeeding year. These rights are valued at the lower of unamortized cost or estimated net realizable value, and are generally charged to operations on an accelerated basis over the contract period. Impairments of unamortized costs to net realizable value are included in production, distribution, and editorial expenses in the Consolidated Statements of Earnings. There were no material impairments of unamortized costs in fiscal years 2019 , 2018 , or 2017 . Future write-offs can vary based on changes in consumer viewing trends and the availability and costs of other programming. |
Intangible Assets and Goodwill | Amortizable intangible assets consist primarily of advertiser relationships, publisher relationships, network affiliation agreements, partner relationships, customer relationships, and retransmission agreements. Intangible assets with finite lives are amortized over their estimated useful lives. The useful life of an intangible asset is the period over which the asset is expected to contribute directly or indirectly to future cash flows. Network affiliation agreements are amortized over the period of time the agreements are expected to remain in place, assuming renewals without material modifications to the original terms and conditions (generally 25 to 40 years from the original acquisition date). Other intangible assets are amortized over their estimated useful lives, ranging from 1 to 10 years . Intangible assets with indefinite lives include trademarks and Federal Communications Commission (FCC) broadcast licenses. These licenses are granted for a term of up to eight years but are renewable if the Company provides at least an average level of service to its customers and complies with the applicable FCC rules and policies and the Communications Act of 1934. The Company has been successful in every one of its past license renewal requests and has incurred only minimal costs in the process. The Company expects the television broadcasting business to continue indefinitely; therefore, the cash flows from the broadcast licenses are also expected to continue indefinitely. The Company has acquired trademark brands that have been determined to have indefinite lives. Those assets are evaluated annually for impairment. The Company evaluates a number of factors to determine whether an indefinite life is appropriate, including the competitive environment, market share, brand history, and operating plans. In addition, when certain events or changes in operating conditions occur, an additional impairment assessment is performed, and indefinite-lived assets may be adjusted to a determinable life. Goodwill and intangible assets which have indefinite lives, are not amortized but are tested for impairment annually or when events occur or circumstances change that indicate the carrying value may exceed the fair value. Goodwill impairment testing is performed at the reporting unit level. The Company has two reporting units – national media, and local media. The Company also assesses, at least annually, whether assets classified as indefinite-lived intangible assets continue to have indefinite lives. The Company performs its goodwill impairment analysis annually as of May 31. At May 31, 2019 , the date the Company last performed its annual evaluation of impairment of goodwill, management elected to perform qualitative impairment tests for the local media reporting unit and a quantitative goodwill impairment test for the national media reporting unit. A quantitative impairment test, performed for a goodwill reporting unit or indefinite-lived intangible assets, involves determining the fair value of the reporting unit or asset which is then compared to its carrying value. Fair value to which carrying value is compared in the quantitative analysis is determined using a discounted cash flow model, which requires us to estimate the future cash flows expected to be generated by the reporting unit or to result from the use of the asset. These estimates include assumptions about future revenues (including projections of overall market growth and share of market), estimated costs, and appropriate discount rates where applicable. These assumptions are based on historical data, various internal estimates, and a variety of external sources and are consistent with the assumptions used in both short-term financial forecasts and long-term strategic plans. Depending on the assumptions and estimates used, future cash flow projections can vary within a range of outcomes. Changes in key assumptions used and their prospects or changes in market conditions could result in an impairment charge. |
Impairment of Long-lived Assets | Long-lived assets (primarily property, plant, and equipment and amortizable intangible assets) are reviewed for impairment whenever events and circumstances indicate the carrying value of an asset may not be recoverable. Recoverability is measured by comparison of the forecasted undiscounted cash flows of the operation to which the assets relate to the carrying amount of the assets. Tests for impairment or recoverability require significant management judgment, and future events affecting cash flows and market conditions could result in impairment losses. |
Derivative Financial Instruments | Meredith does not engage in derivative or hedging activities, except at times to hedge interest rate risk on debt. Prior to the Acquisition, Meredith held interest rate swaps designated and accounted for as cash flow hedges in accordance with Accounting Standards Codification (ASC) 815, Derivatives and Hedging. In connection with the repayment of the variable-rate private placement senior notes and bank term loans on January 31, 2018, as further described in Note 7 , the Company terminated these swaps. Refer to Note 7 for further discussion on the gain recognized on this termination. |
Revenue Recognition | The Company’s primary source of revenue is advertising related. Other sources include consumer related and other revenues. Advertising related revenues— Advertising related revenues are recognized when advertisements are published (defined as an issue’s on-sale date) or aired by the broadcasting station, net of provisions for estimated rebates, rate adjustments, and discounts. Barter revenues are included in advertising revenue and are also recognized when the advertisements are published or the commercials are broadcast. Barter advertising revenues and the offsetting expense are recognized at the fair value of the advertising surrendered, as determined by similar cash transactions. Barter advertising revenues were not material in any period. Digital advertising revenues are recognized ratably over the contract period or as services are delivered. Third party advertising revenues are recognized when the advertisement is run by the third parties, or a print product is placed on-sale. Consumer related revenues— Circulation revenues include magazine single copy and subscription revenue. Single copy revenue is recognized on the publication’s on-sale date, net of provisions for estimated returns. The Company bases its estimates for returns on historical experience and current marketplace conditions. Revenues from magazine subscriptions are deferred and recognized proportionately as products are distributed to subscribers. Brand licensing-based revenues are accrued generally monthly or quarterly based on the specific mechanisms of each contract. Payments are generally made by the Company’s partners on a quarterly basis. Generally, revenues are accrued based on estimated sales and adjusted as actual sales are reported by partners. These adjustments are typically recorded within three months of the initial estimates and have not been material. Any minimum guarantees are typically earned evenly over the fiscal year. Retransmission consent revenues are recognized over the contract period based on the negotiated fee and generally on a per subscriber basis. Revenues earned for placing magazines with subscribers on behalf of third-party publishers is recognized once the subscriber’s name is transferred to the publisher, on a net basis, with a reserve for estimated cancellations. Other revenues— Revenues from content creation and other custom programs are recognized when the products or services are delivered. In addition, the Company participates in certain arrangements containing multiple deliverables. The guidance for accounting for multiple-deliverable arrangements requires that overall arrangement consideration be allocated to each deliverable (unit of accounting) in the revenue arrangement based on the relative selling price as determined by vendor specific objective evidence, third-party evidence, or estimated selling price. The related revenue is recognized when each specific deliverable of the arrangement is delivered. In certain instances, revenues are recorded gross in accordance with U.S. GAAP although the Company receives cash for a lesser amount due to the netting of certain expenses. Amounts received from customers in advance of revenue recognition are deferred as liabilities and recognized as revenue in the period earned. |
Contingent Consideration | The Company estimates and records the acquisition date estimated fair value of contingent consideration as part of purchase price consideration for acquisitions. Additionally, each reporting period, the Company estimates changes in the fair value of contingent consideration, and any change in fair value is recognized in the Consolidated Statements of Earnings. An increase in the earn-out expected to be paid will result in a charge to operations in the quarter that the anticipated fair value of contingent consideration increases, while a decrease in the earn-out expected to be paid will result in a credit to operations in the quarter that the anticipated fair value of contingent consideration decreases. The estimate of the fair value of contingent consideration requires subjective assumptions to be made regarding future operating results, discount rates, and probabilities assigned to various potential operating result scenarios. Future revisions to these assumptions could materially change the estimate of the fair value of contingent consideration and, therefore, materially affect the Company’s future financial results. |
Advertising Expenses | The majority of the Company’s advertising expenses relate to direct-mail costs for magazine subscription acquisition efforts. Advertising costs that are not capitalized are expensed the first time the advertising takes place. |
Deferred Financing Costs | Costs incurred to obtain financing are deferred and amortized to interest expense, net on the Consolidated Statements of Earnings over the related financing period using the effective interest method. The Company records deferred financing costs as a direct reduction of the carrying value of the related debt. Financing costs related to revolving debt instruments or lines of credit are included in other assets on the Consolidated Balance Sheets. |
Income Taxes | The income tax provision is calculated under the liability method. Deferred tax assets and liabilities are recognized for the future tax consequences attributable to differences between the financial statement carrying amounts of existing assets and liabilities and their respective tax basis and tax credit carryforwards. Deferred tax assets and liabilities are measured using enacted tax rates expected to apply to taxable income in the years in which those temporary differences are expected to be recovered or settled. The effect on deferred tax assets and liabilities of a change in tax rates is recognized in earnings in the period when such a change is enacted. The Company recognizes the effect of income tax positions only if those positions are more likely than not of being sustained. Recognized income tax positions are measured at the largest amount that is greater than 50 percent likely of being realized. Changes in recognition or measurement are reflected in the period in which the change in judgment occurs. |
Self-Insurance | The Company self-insures for certain medical claims, and its responsibility generally is capped through the use of a stop loss contract with an insurance company at a certain dollar level. The dollar level varies based on the insurance plan, and is generally $500 thousand . Third-party administrators are used to process claims. The Company uses actual claims data and estimates of claims incurred-but-not-reported to calculate estimated liabilities for unsettled claims on an undiscounted basis. Although management re-evaluates the assumptions and reviews the claims experience on an ongoing basis, actual claims paid could vary significantly from estimated claims. |
Pension and Postretirement Benefits Other Than Pensions | Retirement benefits are provided to employees through pension plans sponsored by the Company. Pension benefits are generally based on formulas that reflect interest credits allocated to participants’ accounts based on years of benefit service and annual pensionable earnings. It is the Company’s policy to fund the qualified pension plans to at least the extent required to maintain their fully funded status. In addition, the Company provides health care and life insurance benefits for certain retired employees, the expected costs of which are accrued over the years that the employees render services. It is the Company’s policy to fund postretirement benefits as claims are paid. |
Share-based Compensation | The Company establishes fair value for its equity awards to determine their cost and recognizes the related expense over the appropriate vesting period. The Company recognizes expense for stock options, restricted stock, restricted stock units, and shares issued under the Company’s employee stock purchase plan. |
Comprehensive Income | Comprehensive income consists of net earnings and other gains and losses affecting shareholders’ equity that, under U.S. GAAP, are excluded from net earnings. Other comprehensive income (loss) includes changes in prior service costs and net actuarial losses from pension and postretirement benefit plans, net of taxes; unrealized gains or losses resulting from foreign currency translation, net of taxes; and changes in the fair value of interest rate swap agreements, net of taxes, to the extent that they are effective. |
Earnings Per Common Share | Basic earnings per share is calculated by dividing net earnings attributable to common shareholders by the weighted average common and Class B shares outstanding for the period. Diluted earnings per share calculation incorporates the shares utilized in the basic calculation but also includes the dilutive effect, if any, of the assumed exercise or conversion of securities, including the effect of shares issuable under the Company’s share-based incentive plans. In connection with the issuance of the Series A preferred stock and detachable warrants on January 31, 2018, the Company now has a two-class capital structure and applies the two-class method in the calculation of earnings per share. The two-class method adjusts earnings to incorporate dividends declared on common stock, preferred stock, and other securities in distributed earnings. In addition, it also incorporates participating rights in other securities in undistributed earnings. The calculation of basic earnings (loss) per common share for each year is based on the weighted average number of common and class B shares outstanding during the year. The calculation of diluted earnings (loss) per common share for each year is based on the weighted average number of common and class B shares outstanding during the year plus the effect, if any, of dilutive common stock equivalent shares. |
Adopted and Pending Accounting Pronouncements | ASU 2014-09—In May 2014, the Financial Accounting Standards Board (FASB) issued Accounting Standards Update (ASU) 2014-09, Revenue from Contracts with Customers (Topic 606) (ASC 606) that updated and replaced existing revenue recognition guidance. The guidance includes a five-step framework to determine the timing and amount of revenue to recognize related to contracts with customers. Additionally, the guidance requires new and significantly enhanced disclosures about the nature, amount, timing, and uncertainty of revenue and cash flows from customer contracts as well as judgments made by a company when following the framework. The Company adopted the standard, including all updates made to the standard since original issuance, on July 1, 2018, using the modified retrospective method. The standard was applied to all contracts open as of July 1, 2018. The cumulative prior period effect of applying ASC 606 was $2.4 million , which resulted in an increase to retained earnings upon adoption. The standard does not change the timing or pattern of revenue recognition for most of the Company's revenue contracts with the exception of contracts with value-added items or those that require combination under the standard. Refer to Note 11 for further discussion on the impacts of the adoption of this accounting standard. The Company utilized various practical expedients offered by the guidance in our implementation. For the Company's contracts that have an original duration of twelve months or less, the Company does not impute interest to account for a financing element. For all contracts with an original term of twelve months or less and for performance obligations tied to sales-based or usage-based royalties, the Company has not disclosed the transaction price for the remaining performance obligations as of the end of each reporting period or when the Company expects to recognize this revenue. Finally, consistent with historical practice, the Company excludes amounts collected from customers for sales taxes from its transaction prices. ASU 2016-01—In January 2016, the FASB issued guidance to improve and simplify accounting for financial instruments. The updated guidance includes several provisions that are not applicable to the Company’s consolidated financial statements with the exception of changes to fair value disclosures. Under the new guidance, public entities are no longer required to disclose the methods and significant assumptions used to estimate fair value of financial instruments measured at amortized cost on the balance sheet. It also requires public entities to use the exit price when measuring the fair value of financial instruments for disclosure purposes. The guidance was adopted in the first quarter of fiscal 2019. The adoption of this guidance required a change in the Company's disclosures only and did not have an impact on the Company's financial position, results of operations, or cash flows. ASU 2016-15—In August 2016, the FASB issued an accounting standards update clarifying the classification of certain cash receipts and payments in the statement of cash flows. The update is intended to reduce the diversity in practice regarding how certain transactions are classified within the statement of cash flows. The update was effective beginning in the first quarter of fiscal 2019 and was adopted retrospectively as required by the ASU. As a result of the update, the Company reclassified a cash outflow of $0.8 million and $0.7 million for the years ended June 30, 2018 and 2017, respectively, from financing activities to operating activities related to contingent considerations paid in excess of that recognized as a liability on the date of acquisition. For the year ended June 30, 2018, the Company also reclassified a cash inflow of $0.7 million from operating activities to investing activities related to cash proceeds from corporate owned life insurance. The update is not expected to have a material impact on the classification of future cash flows. ASU 2017-01—In January 2017, the FASB issued an accounting standards update that clarifies the definition of a business and adds guidance to assist entities in the determination of whether an acquisition (or disposal) represents assets or a business. The update provides a test to determine whether or not an acquisition is a business. If substantially all of the fair value of the assets acquired is concentrated in a single asset or a group of similar identifiable assets, the acquired assets do not represent a business. If this test is not met, the update provides further guidance to evaluate if the acquisition represents a business. The Company prospectively adopted the guidance in the first quarter of fiscal 2019. The adoption did not have an impact to the Company’s consolidated financial statements. ASU 2017-07—In March 2017, the FASB issued an accounting standards update on the presentation of net periodic pension and postretirement benefit costs. This guidance revises how employers that sponsor defined benefit pension and other postretirement plans present the net periodic benefit costs in their income statement and requires that the service cost component of net periodic benefit costs be presented in the same line items as other employee compensation costs. The other components of net periodic benefit costs must be presented separately from the line items that include the service cost and outside of the income from operations subtotal. As required by the standard, the Company adopted the update on July 1, 2018, retrospectively to July 1, 2016, which resulted in an increase in production, distribution, and editorial expenses of $5.5 million ; a decrease in selling, general, and administrative expenses of $4.6 million ; and an increase in non-operating income, net of $0.9 million for the year ended June 30, 2017. For the year ended June 30, 2018, the adoption of this update resulted in an increase in production, distribution, and editorial expenses of $3.2 million ; an increase in selling, general, and administrative expenses of $9.1 million ; and an increase in non-operating income, net of $12.3 million . The Company elected the practical expedient allowed by the update and utilized previously disclosed components of net periodic benefit costs from the pension and other postretirement benefit plan note in the June 30, 2018, Form 10-K. For the year ended June 30, 2019, the implementation of this guidance resulted in an increase in production, distribution, and editorial expenses of $2.6 million ; an increase in selling, general, and administrative expenses of $12.9 million ; and an increase in non-operating income, net of $15.5 million , compared to that which would have been reported under previous guidance. ASU 2017-09—In May 2017, the FASB issued additional guidance that clarifies when changes to the terms or conditions of a share-based payment award must be accounted for as modifications. Under this guidance, an entity does not apply modification accounting to a share-based payment award if the award's fair value, vesting conditions, and classification as an equity or liability instrument are the same immediately before and after the change. This guidance was adopted in the first quarter of fiscal 2019. The adoption of this guidance did not have an impact on the Company's consolidated financial statements. ASU 2018-15—In August 2018, the FASB issued guidance on accounting for costs of implementation activities performed in a cloud computing arrangement that is a service contract. The amendments in the update align the requirements for capitalizing implementation costs incurred in a hosting arrangement that is a service contract with the requirements for capitalizing implementation costs incurred to develop or obtain internal-use software and hosting arrangements that include an internal-use software license. The guidance is effective for the Company beginning in the first quarter of fiscal 2021 with early adoption permitted. The amendments in the update can be applied either retrospectively or prospectively to all implementation costs incurred after the date of adoption. The Company adopted this guidance prospectively, effective July 1, 2018. The adoption did not have a material impact on the Company's consolidated financial statements. In August 2018, the SEC issued a final rule that amends certain of its disclosure requirements. Specifically, the final rule modifies or eliminates disclosures that are redundant, duplicative, overlapping, outdated, or superseded in light of other SEC or U.S. GAAP disclosure requirements or changes in the information environment. Several aspects of the final rule are applicable to the Company but did not have a material impact on the Company's consolidated financial statements. The amendments were effective November 5, 2018, and were implemented in the first quarter of fiscal 2019. ASU 2016-02—In February 2016, the FASB issued an accounting standards update that replaces existing lease accounting standards. The new standard requires lessees to recognize on the balance sheet a right-of use asset, representing its right to use the underlying asset for the lease term, and a lease liability for all leases with terms greater than 12 months. The guidance also requires qualitative and quantitative disclosures designed to assess the amount, timing, and uncertainty of cash flows arising from leases. Treatment of lease payments in the statement of earnings and statement of cash flows is relatively unchanged from previous guidance. This standard is required to be applied using a modified retrospective approach, which gives the option of applying the new guidance as of the effective date with enhanced disclosure requirements for comparative periods presented under prior lease guidance or applying the new standard at the beginning of the earliest comparative period presented. The FASB issued amendments to further clarify provisions of this guidance. The standard, including the amendments made since initial issuance, is effective for the Company beginning July 1, 2019, with early adoption permitted. The Company will adopt this standard on July 1, 2019, using the effective date as the date of initial application. Consequently, prior-period financial information will not be updated and disclosures required under the new standard will not be provided for dates and periods before July 1, 2019. The Company intends to elect the practical expedient package permitted under transition guidance, which allows prior conclusions about lease identification and initial direct costs to not be reassessed and historical lease classification to be carried forward. The Company also currently does not expect to elect the use of the hindsight practical expedient and will make accounting policy elections to exempt leases with an initial term of twelve months or less from balance sheet recognition and not separate lease and non-lease components for certain asset classes of leases. The Company is in the process of finalizing its implementation efforts which include evaluating the existing lease portfolio and implementing a new lease accounting and administration system. While the Company is still quantifying the effect of adoption, it does expect a material impact on the Consolidated Balance Sheet due to the recognition of the right-of-use assets and related liabilities for operating leases and the inclusion of significantly new disclosures about leasing activities on both a quarterly and annual basis. ASU 2016-13—In June 2016, the FASB issued a standard that replaces the current incurred loss methodology for recognizing credit losses with a current expected credit loss methodology. Under this standard, the establishment of an allowance for credit losses reflects all relevant information about past events, current conditions, and reasonable supportable forecasts rather than delaying the recognition of the full amount of a credit loss until the loss is probable of occurring. The new standard changes the impairment model for most financial assets and certain other instruments, including trade receivables. A modified retrospective implementation of this standard is effective in the Company’s first quarter of fiscal 2021, with early adoption permitted in the first quarter of fiscal 2020. The Company is currently evaluating the impact this guidance will have on our consolidated financial statements. ASU 2017-04—In January 2017, the FASB issued an accounting standards update that simplifies the subsequent measurement of goodwill by eliminating Step 2 of the goodwill impairment test. The Step 2 test requires an entity to calculate the implied fair value of goodwill to measure a goodwill impairment charge. Instead, an entity will record an impairment charge based on the excess of a reporting unit’s carrying value over its fair value determined in Step 1. This update also eliminates the qualitative assessment requirements for a reporting unit with zero or negative carrying value. Prospective adoption is required in the first quarter of fiscal 2021, with early adoption permitted. The Company is currently evaluating the impact this update will have on its consolidated financial statements. ASU 2018-13—In August 2018, the FASB issued an accounting standards update which changes the fair value measurement disclosure requirements. The update removes, modifies, and adds certain additional disclosures. The effective date is the first quarter of fiscal 2021, with early adoption permitted for any eliminated or modified disclosures. The adoption of this guidance requires a change in disclosures only and is not expected to have an impact on the Company's consolidated financial statements. ASU 2018-14—In August 2018, the FASB issued an accounting standards update which adds, removes, and modifies disclosure requirements related to defined benefit pension and other postretirement plans. The update amends only annual disclosure requirements. Retrospective adoption of the update is required in fiscal 2022 with early adoption permitted. The adoption of this guidance requires a change in disclosures only and is not expected to have an impact on the Company's consolidated financial statements. ASU 2019-02—In March 2019, the FASB issued an accounting standards update which aligns the accounting for production costs of episodic television series with the accounting for production costs of films. In addition, the update modifies certain aspects of the capitalization, impairment, presentation, and disclosure requirements in the accounting standards for entities in the film and broadcast entertainment industries. The update is effective for the Company in the first quarter of fiscal 2021 and must be applied prospectively. Early adoption is permitted. The Company is currently assessing the impact this update will have on the Company's consolidated financial statements. |
Acquisitions (Tables)
Acquisitions (Tables) | 12 Months Ended |
Jun. 30, 2019 | |
Business Combinations [Abstract] | |
Schedule of Purchase Price Consideration | The following table summarizes the fair value of total consideration transferred and the recognized amounts of identifiable assets acquired and liabilities assumed for the national media segment during the year ended June 30, 2019: (In millions) Consideration Cash $ 16.6 Recognized amounts of identifiable assets acquired and liabilities assumed Total identifiable assets acquired $ 6.0 Total liabilities assumed — Total identified net assets 6.0 Goodwill 10.6 Net assets acquired $ 16.6 The following table summarizes the aggregate purchase price consideration paid to acquire Time: (In millions) Consideration paid to Time shareholders $ 1,860.7 Repayment of Time’s outstanding debt, including prepayment penalty 1,327.9 Cash consideration issued to settle outstanding share-based equity awards 37.6 Total cash consideration 3,226.2 Share-based equity awards issued to settle outstanding share-based equity awards 33.8 Total consideration issued 3,260.0 Portion of cash settlement of outstanding share-based equity awards recognized as expense (9.2 ) Portion of share-based equity awards issued to be recognized as an expense, primarily through fiscal 2021 (24.0 ) Total purchase price consideration $ 3,226.8 |
Schedule of Indentifiable Acquired Intangible Assets by Acquisition | The following table provides details of the identifiable acquired intangible assets: (In millions) Intangible assets subject to amortization Advertiser relationships $ 223.5 Publisher relationships 125.0 Partner relationships 95.0 Customer relationships 63.3 Total 506.8 Intangible assets not subject to amortization Trademarks 641.0 Intangible assets, net $ 1,147.8 The following table provides details of the identifiable acquired intangible assets in the acquisition: (In millions) Intangible assets subject to amortization Partner relationships $ 3.2 Other 1.2 Total intangible assets $ 4.4 |
Schedule of Assets Acquired and Liabilities Assumed | The following table summarizes the purchase price allocation of fair values of the assets acquired and liabilities assumed at the date of acquisition. In fiscal 2019, the Company recorded purchase price allocation adjustments relating to the Time acquisition that increased goodwill by $24.6 million , reduced assets held-for-sale by $19.9 million and increased deferred income tax liabilities by $4.7 million . These adjustments resulted from new information about facts and circumstances that existed at the time of the acquisition. The measurement period is now closed. (In millions) Cash and cash equivalents $ 399.9 Accounts receivable 293.4 Inventory 22.8 Assets held-for-sale 962.2 Other current assets 60.5 Total current assets 1,738.8 Property, plant, and equipment 300.8 Other assets 98.0 Intangible assets 1,147.8 Total identifiable assets acquired 3,285.4 Accounts payable 140.3 Accrued liabilities 195.8 Current portion of unearned revenues 198.5 Liabilities associated with assets held-for-sale 305.5 Total current liabilities 840.1 Unearned revenues 45.0 Deferred income taxes 176.9 Other noncurrent liabilities 104.4 Total liabilities assumed 1,166.4 Total identified net assets 2,119.0 Goodwill 1,107.8 Net assets acquired $ 3,226.8 |
Schedule of Pro Forma Information | The following table presents the amounts of Time’s revenue and earnings included in Meredith’s Consolidated Statements of Earnings since the date of the acquisition for the years ended June 30, 2019 and 2018. As the Company continues to integrate Time, the ability to separately track Time-revenues and expenses, especially unallocated corporate expenses, becomes less feasible. As such, the Time revenues and expenses as presented below are limited to the combined results from the national media and local media segments and do not include discontinued operations, which are separately presented in Note 4 . Years ended June 30, 2018 (In millions except per share data) Time total revenues $ 625.3 Time net earnings (loss) from continuing operations before income tax (74.4 ) |
Schedule of Accounting Changes and Error Corrections | In accordance with Accounting Standards Codification (ASC) 250, Accounting Changes and Error Corrections , the effect of the correction on each financial statement line item for each period affected is as follows: Consolidated Balance Sheet as of June 30, 2018 As Reported Adjustment As Adjusted (in millions) Current portion of subscription acquisition costs $ 118.3 $ 26.7 $ 145.0 Assets held-for-sale 708.0 11.8 719.8 Subscription acquisition costs 61.1 5.2 66.3 Current portion of unearned revenues 366.8 26.7 393.5 Liabilities associated with assets held-for-sale 188.2 11.8 200.0 Unearned revenues 127.1 5.2 132.3 Consolidated Statements of Earnings As Reported Adjustment As Adjusted (in millions) For the twelve months ended June 30, 2018 Consumer related revenue $ 912.3 $ 9.0 $ 921.3 Selling, general, and administrative expense 978.5 9.0 987.5 For the three months ended September 30, 2018 Consumer related revenue 303.6 12.5 316.1 Selling, general, and administrative expense 337.8 12.5 350.3 For the three months ended December 31, 2018 Consumer related revenue 342.6 15.7 358.3 Selling, general, and administrative expense 330.3 15.7 346.0 |
Inventories (Tables)
Inventories (Tables) | 12 Months Ended |
Jun. 30, 2019 | |
Inventory Disclosure [Abstract] | |
Schedule of Inventory, Current | June 30, 2019 2018 (In millions) Raw materials $ 42.7 $ 32.3 Work in process 15.4 9.6 Finished goods 4.6 2.5 Inventories $ 62.7 $ 44.4 |
Assets Held-for-Sale, Discont_2
Assets Held-for-Sale, Discontinued Operations, and Dispositions (Tables) | 12 Months Ended |
Jun. 30, 2019 | |
Discontinued Operations and Disposal Groups [Abstract] | |
Major Components of Assets and Liabilities Held-for-Sale | The following table presents the major components included in assets held-for-sale and liabilities associated with assets held-for-sale which include Sports Illustrated; FanSided, a Sports Illustrated affiliated brand that is being marketed separately from Sports Illustrated; and Viant Technology (Viant), as of June 30, 2019. The balances as of June 30, 2018, include TIME, Fortune, Sports Illustrated (including FanSided), and Viant: (in millions) June 30, 2019 2018 Current assets Cash and cash equivalents $ 5.1 $ 2.3 Accounts receivable, net 78.1 91.4 Inventories 0.1 0.9 Current portion of subscription acquisition costs 34.4 10.4 Other current assets 0.8 5.9 Total current assets 118.5 110.9 Net property, plant, and equipment 14.3 14.1 Subscription acquisition costs — 4.2 Other assets 20.2 1.0 Intangible assets, net 43.9 112.1 Goodwill 124.1 477.5 Total assets held-for-sale $ 321.0 $ 719.8 Current liabilities Accounts payable $ 45.2 $ 44.9 Accrued expenses and other liabilities 27.8 14.7 Current portion of unearned revenues 67.9 110.6 Deferred sale proceeds 73.2 — Total current liabilities 214.1 170.2 Unearned revenues 37.6 29.1 Other noncurrent liabilities 0.4 0.7 Total liabilities associated with assets held-for-sale $ 252.1 $ 200.0 |
Amounts Applicable to Discontinued Operations in Consolidated Statements of Earnings | Amounts applicable to discontinued operations in the Consolidated Statements of Earnings are as follows: Years ended June 30, 2019 2018 (In millions except per share data) Revenues $ 423.4 $ 253.8 Costs and expenses (408.5 ) (242.7 ) Impairment of goodwill (8.5 ) — Interest expense (21.4 ) (11.9 ) Gain (loss) on disposal 2.1 (12.3 ) Loss before income taxes (12.9 ) (13.1 ) Income tax expense (69.9 ) (1.5 ) Loss from discontinued operations, net of income taxes $ (82.8 ) $ (14.6 ) Loss per share from discontinued operations Basic $ (1.83 ) $ (0.32 ) Diluted (1.82 ) (0.32 ) |
Intangible Assets and Goodwill
Intangible Assets and Goodwill (Tables) | 12 Months Ended |
Jun. 30, 2019 | |
Goodwill and Intangible Assets Disclosure [Abstract] | |
Schedule of Finite-Lived Intangible Assets | Intangible assets consist of the following : June 30, 2019 2018 (In millions) Gross Amount Accumulated Amortization Net Amount Gross Amount Accumulated Amortization Net Amount Intangible assets subject to amortization National media Advertiser relationships $ 213.3 $ (102.0 ) $ 111.3 $ 212.3 $ (41.1 ) $ 171.2 Publisher relationships 125.0 (25.4 ) 99.6 125.0 (7.4 ) 117.6 Partner relationships 98.2 (22.7 ) 75.5 95.0 (6.6 ) 88.4 Customer lists 67.5 (46.3 ) 21.2 67.5 (14.0 ) 53.5 Other 23.2 (14.9 ) 8.3 22.0 (11.9 ) 10.1 Local media Network 229.3 (155.1 ) 74.2 229.3 (148.6 ) 80.7 Advertiser relationships 12.5 (5.8 ) 6.7 25.0 (3.5 ) 21.5 Retransmission agreements 27.9 (19.1 ) 8.8 27.9 (14.9 ) 13.0 Other 1.7 (1.2 ) 0.5 1.7 (0.8 ) 0.9 Total $ 798.6 $ (392.5 ) 406.1 $ 805.7 $ (248.8 ) 556.9 Intangible assets not subject to amortization National media Trademarks 724.5 766.3 Internet domain names 7.8 7.8 Local media FCC licenses 675.2 675.2 Total 1,407.5 1,449.3 Intangible assets, net $ 1,813.6 $ 2,006.2 |
Schedule of Indefinite-Lived Intangible Assets | Intangible assets consist of the following : June 30, 2019 2018 (In millions) Gross Amount Accumulated Amortization Net Amount Gross Amount Accumulated Amortization Net Amount Intangible assets subject to amortization National media Advertiser relationships $ 213.3 $ (102.0 ) $ 111.3 $ 212.3 $ (41.1 ) $ 171.2 Publisher relationships 125.0 (25.4 ) 99.6 125.0 (7.4 ) 117.6 Partner relationships 98.2 (22.7 ) 75.5 95.0 (6.6 ) 88.4 Customer lists 67.5 (46.3 ) 21.2 67.5 (14.0 ) 53.5 Other 23.2 (14.9 ) 8.3 22.0 (11.9 ) 10.1 Local media Network 229.3 (155.1 ) 74.2 229.3 (148.6 ) 80.7 Advertiser relationships 12.5 (5.8 ) 6.7 25.0 (3.5 ) 21.5 Retransmission agreements 27.9 (19.1 ) 8.8 27.9 (14.9 ) 13.0 Other 1.7 (1.2 ) 0.5 1.7 (0.8 ) 0.9 Total $ 798.6 $ (392.5 ) 406.1 $ 805.7 $ (248.8 ) 556.9 Intangible assets not subject to amortization National media Trademarks 724.5 766.3 Internet domain names 7.8 7.8 Local media FCC licenses 675.2 675.2 Total 1,407.5 1,449.3 Intangible assets, net $ 1,813.6 $ 2,006.2 |
Schedule of Goodwill | Changes in the carrying amount of goodwill were as follows: (In millions) National Local Total Balance at June 30, 2017 Goodwill $ 943.8 $ 80.6 $ 1,024.4 Accumulated impairment losses (116.9 ) — (116.9 ) 826.9 80.6 907.5 Acquisitions 1,028.0 35.2 1,063.2 Disposals 1 (54.9 ) — (54.9 ) Balance at June 30, 2018 Goodwill 1,800.0 115.8 1,915.8 Accumulated impairment losses — — — 1,800.0 115.8 1,915.8 Acquisitions 10.6 0.8 11.4 Acquisition adjustments 52.2 — 52.2 Balance at June 30, 2019 Goodwill 1,862.8 116.6 1,979.4 Accumulated impairment losses — — — $ 1,862.8 $ 116.6 $ 1,979.4 1 In connection with the sale of MXM, goodwill was reduced by $171.8 million and accumulated |
Restructuring Accruals (Tables)
Restructuring Accruals (Tables) | 12 Months Ended |
Jun. 30, 2019 | |
Restructuring and Related Activities [Abstract] | |
Schedule of Restructuring and Related Costs | Details of the severance and related benefit costs by segment for the performance improvement plans are as follows: Amount Accrued in the Period Total Amount Expected to be Incurred Years ended June 30, 2019 2018 (in millions) National media $ 39.2 $ 51.5 $ 39.6 Local media 2.0 0.9 2.0 Unallocated corporate 15.1 52.5 15.1 $ 56.3 $ 104.9 $ 56.7 Details of changes in the Company’s restructuring accrual are as follows: Years ended June 30, 2019 2018 (in millions) Employee Terminations Other Exit Costs Total Employee Terminations Other Exit Costs Total Balance at beginning of year $ 101.3 $ 6.3 $ 107.6 $ 8.7 $ — $ 8.7 Accrual on Time’s opening balance sheet — — — 38.5 6.6 45.1 Accruals 56.3 31.1 87.4 104.9 1.4 106.3 Cash payments (109.5 ) (13.0 ) (122.5 ) (49.9 ) (1.7 ) (51.6 ) Other accruals — — — (0.1 ) — (0.1 ) Reversal of excess accrual (4.4 ) (1.6 ) (6.0 ) (0.8 ) — (0.8 ) Balance at end of year $ 43.7 $ 22.8 $ 66.5 $ 101.3 $ 6.3 $ 107.6 |
Long-term Debt (Tables)
Long-term Debt (Tables) | 12 Months Ended |
Jun. 30, 2019 | |
Debt Disclosure [Abstract] | |
Schedule of Long-term Debt Instruments | Long-term debt consists of the following: June 30, 2019 (In millions) Principal Balance Unamortized Discount and Debt Issuance Costs Carrying Variable-rate credit facility Senior credit facility term loan, due 1/31/2025 $ 1,062.5 $ (15.6 ) $ 1,046.9 Revolving credit facility of $350 million, due 1/31/2023 35.0 — 35.0 Senior Unsecured Notes 6.875% senior notes, due 2/1/2026 1,272.9 (21.5 ) 1,251.4 Total long-term debt 2,370.4 (37.1 ) 2,333.3 Current portion of long-term debt — — — Long-term debt $ 2,370.4 $ (37.1 ) $ 2,333.3 June 30, 2018 (In millions) Principal Balance Unamortized Discount and Debt Issuance Costs Carrying Variable-rate credit facility Senior credit facility term loan, due 1/31/2025 $ 1,795.5 $ (33.4 ) $ 1,762.1 Revolving credit facility of $350 million, due 1/31/2023 — — — Senior Unsecured Notes 6.875% senior notes, due 2/1/2026 1,400.0 (26.5 ) 1,373.5 Total long-term debt 3,195.5 (59.9 ) 3,135.6 Current portion of long-term debt (18.0 ) 0.3 (17.7 ) Long-term debt $ 3,177.5 $ (59.6 ) $ 3,117.9 |
Income Taxes (Tables)
Income Taxes (Tables) | 12 Months Ended |
Jun. 30, 2019 | |
Income Tax Disclosure [Abstract] | |
Schedule of Components of Income Tax Expense (Benefit) | The following table shows income tax expense (benefit) attributable to earnings (loss) from continuing operations before income taxes: Years ended June 30, 2019 2018 2017 (In millions) Current Federal $ (29.8 ) $ 1.8 $ 62.2 State (2.8 ) 1.2 0.4 Foreign 0.6 0.2 — (32.0 ) 3.2 62.6 Deferred Federal 42.0 (129.9 ) 33.0 State 1.6 3.2 5.8 Foreign (0.1 ) (0.1 ) — 43.5 (126.8 ) 38.8 Income tax expense (benefit) $ 11.5 $ (123.6 ) $ 101.4 |
Schedule of Effective Income Tax Rate Reconciliation | The differences between the statutory U.S. federal income tax rate and the effective tax rate were as follows: Years ended June 30, 2019 2018 2017 U.S. statutory tax rate 21.0 % 28.1 % 35.0 % State income taxes, less federal income tax benefits (0.7 ) 27.8 3.0 Foreign operations (13.3 ) (74.2 ) — Rate change (0.1 ) 1,312.5 — Settlements - audits / tax litigation (2.5 ) 10.4 (2.3 ) Sale of domestic subsidiary — 67.3 — Nondeductible compensation 3.7 (176.4 ) 0.3 Other 0.1 86.9 (1.1 ) Effective income tax rate 8.2 % 1,282.4 % 34.9 % |
Schedule of Deferred Tax Assets and Liabilities | The tax effects of temporary differences that gave rise to deferred tax assets and deferred tax liabilities were as follows: June 30, 2019 2018 (In millions) Deferred tax assets Accounts receivable allowances and return reserves $ 19.3 $ 6.8 Compensation and benefits 29.6 44.0 Indirect benefit of uncertain state and foreign tax positions 6.8 6.4 Investment in foreign subsidiary — 62.1 Investment in partnerships 15.4 8.4 Tax loss carryforwards 57.7 127.8 Accelerated gains from dispositions 18.2 — All other assets 16.9 8.8 Total deferred tax assets 163.9 264.3 Valuation allowance (21.7 ) (21.1 ) Net deferred tax assets 142.2 243.2 Deferred tax liabilities Subscription acquisition costs 66.9 43.4 Accumulated depreciation and amortization 559.2 612.0 Deferred gains from dispositions 15.8 15.7 All other liabilities 4.9 4.6 Total deferred tax liabilities 646.8 675.7 Net deferred tax liability $ 504.6 $ 432.5 |
Summary of Income Tax Contingencies | A reconciliation of the beginning and ending balances of the total amounts of gross unrecognized tax benefits is as follows: Years ended June 30, 2019 2018 (In millions) Balance at beginning of year $ 60.2 $ 29.5 Increase in positions acquired in business combination — 31.9 Increases in tax positions for prior years 0.2 0.4 Decreases in tax positions for prior years (0.7 ) — Increases in tax positions for current year 0.6 5.6 Settlements (0.1 ) (4.2 ) Lapse in statute of limitations (6.5 ) (3.0 ) Balance at end of year $ 53.7 $ 60.2 |
Commitments and Contingent Li_2
Commitments and Contingent Liabilities (Tables) | 12 Months Ended |
Jun. 30, 2019 | |
Commitments and Contingencies Disclosure [Abstract] | |
Schedule of Future Minimum Rental Payments for Operating Leases | Commitments expected to be paid over the next five years and thereafter are as follows: Payments Due In Years ending June 30, 2020 2021 2022 2023 2024 Thereafter Total (in millions) Operating leases $ 61.3 $ 57.5 $ 54.9 $ 52.4 $ 52.8 $ 397.7 $ 676.6 Broadcast rights payable Recorded commitments 6.5 3.7 2.8 1.7 0.3 — 15 Unavailable rights 11.2 2.9 0.2 — — — 14.3 Total commitments $ 79.0 $ 64.1 $ 57.9 $ 54.1 $ 53.1 $ 397.7 $ 705.9 |
Fair Value Measurements (Tables
Fair Value Measurements (Tables) | 12 Months Ended |
Jun. 30, 2019 | |
Fair Value Disclosures [Abstract] | |
Fair Value, by Balance Sheet Grouping | The following table sets forth the carrying value and the estimated fair value of the Company’s financial instruments not measured at fair value on a recurring basis: June 30, 2019 June 30, 2018 (In millions) Carrying Value Fair Value Carrying Value Fair Value Broadcast rights payable $ 15.0 $ 13.6 $ 29.7 $ 27.4 Long-term debt 2,333.3 2,452.9 3,135.6 3,179.8 |
Schedule of Fair Value, Assets and Liabilities Measured on Recurring Basis | The following table sets forth the assets and liabilities measured at fair value on a recurring basis: (In millions) June 30, 2019 June 30, 2018 Accrued expenses and other liabilities Contingent consideration $ — $ 24.6 Deferred compensation plans 4.7 8.4 Other noncurrent liabilities Contingent consideration 0.8 0.8 Deferred compensation plans 16.2 21.0 |
Fair Value, Liabilities Measured on Recurring and Nonrecurring Basis, Unobservable Input Reconciliation | The following table represents the changes in the fair value of assets and liabilities subject to Level 3 remeasurement during the years ended June 30, 2019 and 2018 . Years ended June 30, 2019 2018 (in millions) Contingent consideration Balance at beginning of year $ 25.4 $ 34.2 Accrual on Time’s opening balance sheet 1 — 1.1 Payments (19.3 ) (5.1 ) Fair value adjustment of contingent consideration (5.3 ) (4.8 ) Balance at end of year $ 0.8 $ 25.4 Trademarks Balance at beginning of year 2 $ 69.0 $ 55.7 Impairment (41.8 ) (22.7 ) Balance at end of year $ 27.2 $ 33.0 Investment in Next Issue Media Balance at beginning of year 3 $ — $ 11.0 Additions due to investment and acquisition — 3.3 Equity method investment losses — (3.6 ) Impairment — (9.3 ) Sale — (1.4 ) Balance at end of year $ — $ — Lease guarantee Balance at beginning of year $ — $ — Accrual on Time’s opening balance sheet — 3.6 Issuance of new guarantees — 9.2 Fair market value adjustment of lease guarantees — (0.4 ) Foreign currency exchange impact — (0.5 ) Balance at end of year $ — $ 11.9 1 Of this amount, $0.5 million was classified in liabilities associated with assets held-for-sale on the opening balance 2 Book value of trademarks impaired during the year. 3 Book value of investment impaired during the year. |
Revenue Recognition (Tables)
Revenue Recognition (Tables) | 12 Months Ended |
Jun. 30, 2019 | |
Revenue from Contract with Customer [Abstract] | |
Disaggregation of Revenue | A reconciliation of disaggregated revenue to segment revenue (as provided in Note 18 ) is as follows. June 30, 2019 National Media Local Media Intersegment Elimination Total (In millions) Advertising related Print $ 690.1 $ — $ — $ 690.1 Non-political spot — 323.3 — 323.3 Political spot — 102.9 — 102.9 Digital 394.9 15.8 — 410.7 Third party sales 65.3 96.2 (1.9 ) 159.6 Total advertising related 1,150.3 538.2 (1.9 ) 1,686.6 Consumer related Subscription 693.7 — — 693.7 Retransmission — 316.5 — 316.5 Newsstand 165.5 — — 165.5 Affinity marketing 83.6 — — 83.6 Licensing 94.4 — — 94.4 Digital consumer driven 39.9 — — 39.9 Total consumer related 1,077.1 316.5 — 1,393.6 Other Projects based 50.5 — — 50.5 Other 48.7 9.1 — 57.8 Total other 99.2 9.1 — 108.3 Total revenues $ 2,326.6 $ 863.8 $ (1.9 ) $ 3,188.5 |
Pension and Postretirement Be_2
Pension and Postretirement Benefit Plans (Tables) | 12 Months Ended |
Jun. 30, 2019 | |
Retirement Benefits [Abstract] | |
Schedule of Net Funded Status | The following tables present changes in, and components of, the Company’s net assets/liabilities for pension and other postretirement benefits: Pension Postretirement Domestic International Domestic June 30, 2019 2018 2019 2018 2019 2018 (In millions) Change in benefit obligation Benefit obligation, beginning of year $ 179.4 $ 170.9 $ 721.5 $ — $ 8.4 $ 9.3 Acquisitions 1 — — — 836.6 — — Service cost 11.5 13.0 0.1 — — 0.1 Interest cost 6.5 5.9 16.9 8.0 0.3 0.3 Participant contributions — — — — 0.9 0.8 Plan amendments — 1.2 7.1 — — — Net actuarial loss (gain) 10.3 2.4 35.8 (21.0 ) (0.4 ) (0.8 ) Benefits paid (including lump sums) (13.1 ) (12.9 ) (17.0 ) (44.1 ) (0.9 ) (1.3 ) Settlements (8.4 ) — (12.7 ) — — — Contractual termination benefits 1.3 — — — — — Curtailments — (1.1 ) — — — — Foreign currency exchange rate impact — — (26.4 ) (58.0 ) — — Benefit obligation, end of year $ 187.5 $ 179.4 $ 725.3 $ 721.5 $ 8.3 $ 8.4 Change in plan assets Fair value of plan assets, beginning of year $ 139.0 $ 139.2 $ 841.5 $ — $ — $ — Acquisitions 1 — — — 867.7 — — Actual return on plan assets 9.2 12.0 75.5 (6.7 ) — — Employer contributions 8.7 0.7 16.2 88.9 0.1 0.5 Participant contributions — — — — 0.8 0.8 Benefits paid (including lump sums) (13.1 ) (12.9 ) (17.0 ) (44.1 ) (0.9 ) (1.3 ) Settlements (8.4 ) — (12.7 ) — — — Foreign currency exchange rate impact — — (31.4 ) (64.3 ) — — Fair value of plan assets, end of year $ 135.4 $ 139.0 $ 872.1 $ 841.5 $ — $ — Over (under) funded status, end of year $ (52.1 ) $ (40.4 ) $ 146.8 $ 120.0 $ (8.3 ) $ (8.4 ) 1 The International pension plans were acquired with the acquisition of Time Inc. on January 31, 2018. |
Schedule of Amounts Recognized In Balance Sheet | The following amounts are recognized in the Consolidated Balance Sheets: Pension Postretirement Domestic International Domestic June 30, 2019 2018 2019 2018 2019 2018 (In millions) Other assets Prepaid benefit cost $ 11.2 $ 16.9 $ 157.1 $ 137.4 $ — $ — Accrued expenses-compensation and benefits Accrued benefit liability (28.0 ) (9.9 ) (0.2 ) (0.2 ) (0.6 ) (0.6 ) Other noncurrent liabilities Accrued benefit liability (35.3 ) (47.4 ) (10.1 ) (17.2 ) (7.7 ) (7.8 ) Net amount recognized, end of year $ (52.1 ) $ (40.4 ) $ 146.8 $ 120.0 $ (8.3 ) $ (8.4 ) |
Schedule of Benefit Obligations in Excess of Fair Value of Plan Assets | The following table provides information about pension plans with projected benefit obligations and accumulated benefit obligations in excess of plan assets: Domestic International June 30, 2019 2018 2019 2018 (In millions) Projected benefit obligation $ 63.4 $ 57.3 $ 10.3 $ 28.4 Accumulated benefit obligation 57.1 51.6 10.3 28.4 Fair value of plan assets 0.1 0.1 — 11.0 |
Schedule of Net Benefit Costs | The components of net periodic benefit costs recognized in the Consolidated Statements of Earnings were as follows: Pension Postretirement Domestic International Domestic Years ended June 30, 2019 2018 2017 2019 2018 2019 2018 2017 (In millions) Components of net periodic benefit costs Service cost $ 11.5 $ 13.0 $ 12.5 $ 0.1 $ — $ — $ 0.1 $ 0.1 Interest cost 6.5 5.9 4.9 16.9 8.0 0.3 0.3 0.3 Expected return on plan assets (9.7 ) (10.5 ) (9.2 ) (31.5 ) (17.9 ) — — — Prior service cost (credit) amortization 0.5 0.3 0.2 — — — (0.4 ) (0.4 ) Actuarial loss (gain) amortization 1.9 2.0 3.6 — — (0.6 ) (0.3 ) (0.3 ) Settlement charge (credit) 2.7 — — (4.1 ) 0.2 — — — Contractual termination benefits 1.3 — — — — — — — Net periodic benefit costs (credit) $ 14.7 $ 10.7 $ 12.0 $ (18.6 ) $ (9.7 ) $ (0.3 ) $ (0.3 ) $ (0.3 ) |
Schedule of Amounts Recognized in Accumulated Other Comprehensive Income (Loss) | Amounts recognized in the accumulated other comprehensive loss component of shareholders’ equity for Company-sponsored plans were as follows: Pension Postretirement Domestic International Domestic June 30, 2019 2018 2019 2018 2019 2018 (In millions) Unrecognized net actuarial losses (gains), net of taxes $ 25.3 $ 20.7 $ (0.6 ) $ 2.6 $ (1.7 ) $ (1.8 ) Unrecognized prior service cost (credit), net of taxes 1.1 1.5 5.6 — — — Total $ 26.4 $ 22.2 $ 5.0 $ 2.6 $ (1.7 ) $ (1.8 ) |
Schedule of Assumptions Used | Benefit obligations were determined using the following weighted average assumptions: Pension Postretirement Domestic International Domestic June 30, 2019 2018 2019 2018 2019 2018 Weighted average assumptions Discount rate 3.39 % 4.03 % 2.24 % 2.57 % 3.45 % 4.10 % Rate of compensation increase 3.09 % 3.50 % n/a n/a 3.50 % 3.50 % n/a - Not applicable Net periodic benefit costs were determined using the following weighted average assumptions: Pension Postretirement Domestic International Domestic Years ended June 30, 2019 2018 2017 2019 2018 2019 2018 2017 Weighted average assumptions Discount rate 4.03 % 3.41 % 2.98 % 2.57 % 2.57 % 4.10 % 3.65 % 3.40 % Expected return on plan assets 8.00 % 8.00 % 8.00 % 3.89 % 4.87 % n/a n/a n/a Rate of compensation increase 3.50 % 3.50 % 3.50 % n/a 3.50 % 3.50 % 3.50 % 3.50 % n/a - Not applicable Plan trend rates are the annual rates of increase expected for medical benefits payable from the Plan. The assumed health care trend rates used to measure the expected cost of benefits were as follows: Postretirement Assumed healthcare cost trend rates as of June 30, 2019 2018 2017 Rate of increase in health care cost levels Initial level 6.00 % 6.50 % 7.00 % Ultimate level 5.00 % 5.00 % 5.00 % Years to ultimate level 3 years 4 years 5 years |
Schedule of Effect of One-Percentage-Point Change in Assumed Health Care Cost Trend Rates | A change of one percentage point in the assumed healthcare cost trend rates would have the following effects: One Percentage Point Increase One Percentage Point Decrease (In millions) Effect on service and interest cost components for fiscal 2019 $ — $ — Effect on postretirement benefit obligation as of June 30, 2019 0.4 (0.3 ) |
Schedule of Targeted and Weighted Average Asset Allocations by Assets Category for Investments Pension Plans | The targeted and weighted average asset allocations by asset category for investments held by the Company’s pension plans are as follows: Domestic International 2019 Allocation 2018 Allocation 2019 Allocation 2018 Allocation June 30, Target Actual Target Actual Target Actual Target Actual Equity securities 70 % 68 % 70 % 70 % 7 % 7 % 32 % 18 % Fixed-income securities 30 % 32 % 30 % 30 % 80 % 79 % 17 % 29 % Other securities 1 — % — % — % — % 13 % 14 % 51 % 53 % Total 100 % 100 % 100 % 100 % 100 % 100 % 100 % 100 % 1 Other primarily includes pooled investment funds. |
Schedule of Changes in Fair Value of Plan Assets | Fair value measurements for domestic pension plan assets were as follows: June 30, 2019 Total Fair Value Quoted Prices (Level 1) Significant Other Observable Inputs (Level 2) Significant Unobservable Inputs (Level 3) (In millions) Investments in registered investment companies Equity $ 91.8 $ 68.4 $ 23.4 $ — Fixed Income 43.0 — 43.0 — Pooled separate accounts 0.6 — 0.6 — Total assets at fair value $ 135.4 $ 68.4 $ 67.0 $ — June 30, 2018 Investments in registered investment companies Equity $ 97.0 $ 74.0 $ 23.0 $ — Fixed Income 40.4 — 40.4 — Pooled separate accounts 1.6 — 1.6 — Total assets at fair value $ 139.0 $ 74.0 $ 65.0 $ — Fair value measurements for international pension plan assets were as follows: June 30, 2019 Total Fair Value Quoted Prices (Level 1) Significant Other Observable Inputs (Level 2) Significant Unobservable Inputs (Level 3) (In millions) Cash and cash equivalents $ 121.8 $ 119.5 $ 2.3 $ — Pooled investments Equity 60.0 — 60.0 — Fixed Income 393.9 — 393.9 — Other 296.4 — 296.4 — Guaranteed investment contract — — — — Total assets at fair value $ 872.1 $ 119.5 $ 752.6 $ — June 30, 2018 Cash and cash equivalents $ 17.6 $ 5.2 $ 12.4 $ — Pooled investments Equity 155.1 — 155.1 — Fixed Income 242.0 — 242.0 — Other 415.8 — 415.8 — Guaranteed investment contract 11.0 — 11.0 — Total assets at fair value $ 841.5 $ 5.2 $ 836.3 $ — |
Schedule of Expected Benefit Payments | The following benefit payments, which reflect expected future service as appropriate, are expected to be paid: Years ending June 30, Pension Benefits Postretirement Benefits (In millions) Domestic International Domestic 2020 $ 43.4 $ 15.0 $ 0.6 2021 17.3 16.2 0.6 2022 12.6 17.6 0.6 2023 13.1 18.1 0.6 2024 13.9 19.1 0.6 2025-2029 72.9 113.7 2.6 |
Share-based Compensation (Table
Share-based Compensation (Tables) | 12 Months Ended |
Jun. 30, 2019 | |
Share-based Payment Arrangement [Abstract] | |
Schedule of Restricted Stock Activity | The Company’s restricted stock activity during the year ended June 30, 2019 , was as follows: Restricted Stock Shares Weighted Average Grant Date Fair Value Aggregate Intrinsic Value (Shares in thousands and Aggregate Intrinsic Value in millions) Nonvested at June 30, 2018 20.6 $ 48.94 Granted 11.6 58.76 Vested (13.5 ) 48.02 Nonvested at June 30, 2019 18.7 55.72 $ 1.0 |
Schedule of Restricted Stock Units Activity | The Company’s restricted stock unit activity during the year ended June 30, 2019 , was as follows: Restricted Stock Units Units Weighted Average Grant Date Fair Value Aggregate Intrinsic Value (Units in thousands and Aggregate Intrinsic Value in millions) Nonvested at June 30, 2018 565.7 $ 49.78 Granted 266.6 52.55 Vested (250.9 ) 45.24 Forfeited (99.7 ) 51.42 Nonvested at June 30, 2019 481.7 53.34 $ 26.5 |
Schedule of Stock Equivalent Units Activity | The following table summarizes the activity for stock equivalent units during the year ended June 30, 2019 : Stock Equivalent Units Units Weighted Average Issue Date Fair Value Aggregate Intrinsic Value (Units in thousands and Aggregate Intrinsic Value in millions) Balance at June 30, 2018 319.1 $ 38.92 Additions 15.3 54.84 Converted to common stock (92.2 ) 38.92 Balance at June 30, 2019 242.2 39.92 $ 3.7 |
Schedule of Stock Option Activity | A summary of stock option activity and weighted average exercise prices follows: Stock Options Options Weighted Average Exercise Price Weighted Average Remaining Contractual Term Aggregate Intrinsic Value (Options in thousands and Aggregate Intrinsic Value in millions) Outstanding July 1, 2018 2,421.2 $ 50.56 Granted 674.3 52.85 Exercised (109.8 ) 40.13 Forfeited (180.8 ) 52.29 Outstanding June 30, 2019 2,804.9 51.40 7.3 $ 12.6 Exercisable June 30, 2019 1,418.3 $ 48.25 6.3 $ 10.4 |
Schedule of Assumptions | The following summarizes the assumptions used in determining the fair value of options granted: Years ended June 30, 2019 2018 2017 Risk-free interest rate 2.3-3.0% 1.8-2.6% 1.3-2.1% Expected dividend yield 4 % 4 % 4 % Expected option life 6-6.5 yrs 4.9-7 yrs 7 yrs Expected stock price volatility 33-35% 28-36% 29 % |
Redeemable Series A Preferred_2
Redeemable Series A Preferred Stock (Tables) | 12 Months Ended |
Jun. 30, 2019 | |
Temporary Equity Disclosure [Abstract] | |
Schedule of Dividend Annual Rates | Year Cash Dividend Annual Rate Accrued Dividend Annual Rate Years 1 through 3 8.5% 9% Year 4 LIBOR plus 850 bps LIBOR plus 900 bps Year 5 LIBOR plus 950 bps LIBOR plus 1000 bps Year 6 through redemption LIBOR plus 1050 bps LIBOR plus 1100 bps |
Common Stock (Tables)
Common Stock (Tables) | 12 Months Ended |
Jun. 30, 2019 | |
Equity [Abstract] | |
Schedule of Stock Repurchases | Repurchases of the Company’s common and class B stock are as follows: Years ended June 30, 2019 2018 2017 (In millions) Number of shares 0.2 0.5 0.9 Cost at market value $ 10.0 $ 31.1 $ 53.3 |
Earnings (Loss) Per Common Sh_2
Earnings (Loss) Per Common Share (Tables) | 12 Months Ended |
Jun. 30, 2019 | |
Earnings Per Share [Abstract] | |
Schedule of Earnings (Loss) Per Share, Basic and Diluted | The following table presents the calculations of basic earnings (loss) per common share: Years ended June 30, 2019 2018 2017 (In millions except per share data) Net earnings $ 46.3 $ 99.4 $ 188.9 Participating warrants dividend (3.6 ) (1.8 ) — Preferred stock dividend (55.9 ) (22.9 ) — Accretion of Series A preferred stock (17.6 ) (7.2 ) — Other securities dividends (1.2 ) (1.1 ) — Basic earnings (loss) attributable to common shareholders $ (32.0 ) $ 66.4 $ 188.9 Basic weighted average common shares outstanding 45.3 44.9 44.6 Basic earnings (loss) per common share $ (0.71 ) $ 1.48 $ 4.23 Diluted earnings (loss) per common share reflects the potential dilution that could occur if securities or other contracts to issue common stock were exercised or converted into common stock. The dilutive effects of these share-based awards were computed using the two-class method. Years ended June 30, 2019 2018 2017 (In millions except per share data) Basic weighted average common shares outstanding 45.3 44.9 44.6 Dilutive effect of stock options and equivalents 0.2 0.3 0.8 Diluted weighted average common shares outstanding 45.5 45.2 45.4 Diluted earnings (loss) attributable to common shareholders $ (32.0 ) $ 66.4 $ 188.9 Diluted earnings (loss) per common share (0.70 ) 1.47 4.16 |
Other Comprehensive Income (L_2
Other Comprehensive Income (Loss) (Tables) | 12 Months Ended |
Jun. 30, 2019 | |
Equity [Abstract] | |
Schedule of Accumulated Other Comprehensive Income (Loss) | The following table summarizes the items of other comprehensive income (loss) and the accumulated other comprehensive loss balances: Minimum Pension/Post Retirement Liability Adjustments Foreign Currency Translation Interest Accumulated (In millions) Balance at June 30, 2016 $ (24.1 ) $ — $ (4.4 ) $ (28.5 ) Current-year adjustments, pre-tax 8.6 — 6.8 15.4 Tax expense (3.3 ) — (2.6 ) (5.9 ) Other comprehensive income 5.3 — 4.2 9.5 Balance at June 30, 2017 (18.8 ) — (0.2 ) (19.0 ) Current-year adjustments, pre-tax (0.5 ) (12.9 ) 0.4 (13.0 ) Tax expense (0.3 ) — (0.4 ) (0.7 ) Other comprehensive loss (0.8 ) (12.9 ) — (13.7 ) Reclassification to retained earnings 1 (4.2 ) — 0.2 (4.0 ) Balance at June 30, 2018 (23.8 ) (12.9 ) — (36.7 ) Current-year adjustments, pre-tax (9.1 ) (2.8 ) — (11.9 ) Tax benefit 2.3 — — 2.3 Other comprehensive loss (6.8 ) (2.8 ) — (9.6 ) Balance at June 30, 2019 $ (30.6 ) $ (15.7 ) $ — $ (46.3 ) 1 Reclassification related to a one-time adjustment for the adoption of ASU 2018-02, Reclassification of Certain Tax Effects from Accumulated Other Comprehensive Income. |
Financial Information about I_2
Financial Information about Industry Segments (Tables) | 12 Months Ended |
Jun. 30, 2019 | |
Segment Reporting [Abstract] | |
Schedule of Segment Reporting Information, by Segment | The following table presents financial information by segment: Years ended June 30, 2019 2018 2017 (In millions) Revenues National media $ 2,326.6 $ 1,572.6 $ 1,083.2 Local media 863.8 693.1 630.1 Total revenues, gross 3,190.4 2,265.7 1,713.3 Intersegment revenue elimination (1.9 ) (1.5 ) — Total revenue $ 3,188.5 $ 2,264.2 $ 1,713.3 Segment profit National media $ 126.0 $ 85.0 $ 146.4 Local media 278.3 186.7 211.6 Unallocated corporate (117.3 ) (184.8 ) (49.8 ) Income from operations 287.0 86.9 308.2 Non-operating income, net 24.2 0.7 0.9 Interest expense, net (170.6 ) (97.2 ) (18.8 ) Earnings (loss) from continuing operations before income taxes $ 140.6 $ (9.6 ) $ 290.3 Depreciation and amortization National media $ 206.5 $ 92.9 $ 17.5 Local media 36.6 33.2 34.8 Unallocated corporate 4.5 2.9 1.5 Total depreciation and amortization $ 247.6 $ 129.0 $ 53.8 Assets National media $ 4,606.8 $ 5,202.0 $ 1,487.1 Local media 1,192.3 1,204.6 1,124.9 Unallocated corporate 337.8 364.3 117.7 Total assets $ 6,136.9 $ 6,770.9 $ 2,729.7 Capital expenditures National media $ 13.0 $ 11.0 $ 4.5 Local media 25.1 21.0 12.2 Unallocated corporate 8.3 21.2 18.1 Total capital expenditures $ 46.4 $ 53.2 $ 34.8 |
Issuer, Guarantor, and Non-Gu_2
Issuer, Guarantor, and Non-Guarantor Condensed Consolidating Financial Information (Tables) | 12 Months Ended |
Jun. 30, 2019 | |
Condensed Financial Information Disclosure [Abstract] | |
Condensed Consolidated Balance Sheet | Meredith Corporation and Subsidiaries Condensed Consolidated Balance Sheet As of June 30, 2019 Meredith Corporation (Parent Issuer) Guarantor Subsidiaries Non-Guarantor Subsidiaries Eliminations Consolidated (In millions) Current assets Cash and cash equivalents $ 30.3 $ 3.2 $ 11.5 $ — $ 45.0 Accounts receivable, net 327.5 267.4 14.2 — 609.1 Inventories 53.7 8.9 0.1 — 62.7 Current portion of subscription acquisition costs 91.5 156.8 — (6.3 ) 242.0 Current portion of broadcast rights 4.9 2.2 — — 7.1 Assets held-for-sale — 208.8 112.2 — 321.0 Other current assets 46.5 14.1 2.6 — 63.2 Total current assets 554.4 661.4 140.6 (6.3 ) 1,350.1 Net property, plant, and equipment 340.8 107.8 1.7 — 450.3 Subscription acquisition costs 152.3 121.6 — — 273.9 Broadcast rights 4.8 1.2 — — 6.0 Other assets 55.8 28.8 179.0 — 263.6 Intangible assets, net 627.7 1,181.0 4.9 — 1,813.6 Goodwill 614.8 1,317.6 47.0 — 1,979.4 Intercompany receivable 470.5 10,352.3 7,958.6 (18,781.4 ) — Intercompany notes receivable — 215.5 0.2 (215.7 ) — Investment in subsidiaries 3,874.5 983.0 — (4,857.5 ) — Total assets $ 6,695.6 $ 14,970.2 $ 8,332.0 $ (23,860.9 ) $ 6,136.9 Liabilities, Redeemable Convertible Preferred Stock, and Shareholders’ Equity Current liabilities Current portion of long-term broadcast rights payable $ 4.5 $ 2.1 $ — $ — $ 6.6 Accounts payable 141.5 90.4 10.7 — 242.6 Accrued expenses 190.9 105.1 4.6 — 300.6 Current portion of unearned revenues 183.2 277.7 3.8 (5.8 ) 458.9 Liabilities associated with assets held-for-sale — 190.8 61.3 — 252.1 Total current liabilities 520.1 666.1 80.4 (5.8 ) 1,260.8 Long-term debt 2,333.3 — — — 2,333.3 Long-term broadcast rights payable 6.7 1.7 — — 8.4 Unearned revenues 155.7 162.9 — — 318.6 Deferred income taxes 221.8 266.2 18.2 — 506.2 Other noncurrent liabilities 91.0 84.2 19.6 — 194.8 Investment in subsidiaries — — 74.8 (74.8 ) — Intercompany payable 1,852.2 9,105.0 7,824.2 (18,781.4 ) — Intercompany notes payable — 0.2 215.5 (215.7 ) — Total liabilities 5,180.8 10,286.3 8,232.7 (19,077.7 ) 4,622.1 Redeemable, convertible Series A preferred stock 540.2 — — — 540.2 Shareholders’ equity 974.6 4,683.9 99.3 (4,783.2 ) 974.6 Total liabilities, redeemable convertible preferred stock, and shareholders’ equity $ 6,695.6 $ 14,970.2 $ 8,332.0 $ (23,860.9 ) $ 6,136.9 Meredith Corporation and Subsidiaries Condensed Consolidated Balance Sheet As of June 30, 2018 Assets Meredith Corporation (Parent Issuer) Guarantor Subsidiaries Non-Guarantor Subsidiaries Eliminations Consolidated (In millions) Current assets Cash and cash equivalents $ 195.0 $ 202.8 $ 39.8 $ — $ 437.6 Accounts receivable, net 223.5 333.2 — (11.5 ) 545.2 Inventories 23.6 20.7 0.1 — 44.4 Current portion of subscription acquisition costs 107.0 38.0 — — 145.0 Current portion of broadcast rights 7.7 2.1 — — 9.8 Assets held-for-sale — 654.6 65.2 — 719.8 Other current assets 55.3 37.6 22.0 — 114.9 Total current assets 612.1 1,289.0 127.1 (11.5 ) 2,016.7 Net property, plant, and equipment 162.4 318.1 3.2 — 483.7 Subscription acquisition costs 57.1 9.2 — — 66.3 Broadcast rights 16.9 2.0 — — 18.9 Deferred income taxes — — 6.3 (6.3 ) — Other assets 60.4 5.4 197.5 — 263.3 Intangible assets, net 676.2 1,329.0 1.0 — 2,006.2 Goodwill 614.7 1,266.9 34.2 — 1,915.8 Intercompany receivable 11.8 8,086.1 7,773.2 (15,871.1 ) — Intercompany note receivable — 204.7 — (204.7 ) — Investment in subsidiaries 3,844.5 1,050.6 — (4,895.1 ) — Total assets $ 6,056.1 $ 13,561.0 $ 8,142.5 $ (20,988.7 ) $ 6,770.9 Liabilities and Shareholders’ Equity Current liabilities Current portion of long-term debt $ 17.7 $ — $ — $ — $ 17.7 Current portion of long-term broadcast rights payable 6.9 2.0 — — 8.9 Accounts payable 67.2 95.4 44.0 (11.5 ) 195.1 Accrued expenses 142.6 263.4 4.6 — 410.6 Current portion of unearned revenues 171.5 213.4 7.7 0.9 393.5 Liabilities associated with assets held-for-sale — 125.8 74.2 — 200.0 Total current liabilities 405.9 700.0 130.5 (10.6 ) 1,225.8 Long-term debt 3,117.9 — — — 3,117.9 Long-term broadcast rights payable 18.3 2.5 — — 20.8 Unearned revenues 82.3 50.2 (0.2 ) — 132.3 Deferred income taxes 209.5 233.8 — (6.3 ) 437.0 Other noncurrent liabilities 99.4 97.8 19.8 — 217.0 Investment in subsidiaries — — 58.8 (58.8 ) — Intercompany payable 502.7 7,846.4 7,522.0 (15,871.1 ) — Intercompany notes payable — — 204.7 (204.7 ) — Total liabilities 4,436.0 8,930.7 7,935.6 (16,151.5 ) 5,150.8 Redeemable, convertible Series A preferred stock 522.6 — — — 522.6 Shareholders’ equity 1,097.5 4,630.3 206.9 (4,837.2 ) 1,097.5 Total liabilities, redeemable convertible preferred stock, and shareholders’ equity $ 6,056.1 $ 13,561.0 $ 8,142.5 $ (20,988.7 ) $ 6,770.9 |
Condensed Consolidated Statement of Comprehensive Income | Meredith Corporation and Subsidiaries Condensed Consolidated Statement of Comprehensive Income For the Year Ended June 30, 2019 Meredith Corporation Guarantor Non-Guarantor Eliminations Consolidated (In millions) Revenues Advertising related $ 602.2 $ 1,077.0 $ 7.8 $ (0.4 ) $ 1,686.6 Consumer related 536.9 884.0 42.7 (70.0 ) 1,393.6 All other 49.0 77.5 13.8 (32.0 ) 108.3 Total revenues 1,188.1 2,038.5 64.3 (102.4 ) 3,188.5 Operating expenses Production, distribution, and editorial 510.8 712.9 28.5 (91.0 ) 1,161.2 Selling, general, and administrative 555.0 800.9 5.9 (11.8 ) 1,350.0 Acquisition, disposition, and restructuring related activities 34.0 56.8 10.1 — 100.9 Depreciation and amortization 44.0 201.0 2.6 — 247.6 Impairment of long-lived assets 39.8 2.0 — — 41.8 Total operating expenses 1,183.6 1,773.6 47.1 (102.8 ) 2,901.5 Income from operations 4.5 264.9 17.2 0.4 287.0 Non-operating income, net 3.6 9.5 11.1 — 24.2 Interest income (expense), net (172.2 ) 14.9 (13.3 ) — (170.6 ) Earnings (loss) from continuing operations before income taxes (164.1 ) 289.3 15.0 0.4 140.6 Income tax benefit (expense) 34.4 (42.5 ) (3.4 ) — (11.5 ) Earnings (loss) from continuing operations (129.7 ) 246.8 11.6 0.4 129.1 Gain (loss) from discontinued operations, net of income taxes — (104.1 ) 21.3 — (82.8 ) Earnings (loss) before equity income (loss) (129.7 ) 142.7 32.9 0.4 46.3 Earnings (loss) from equity in subsidiaries 176.0 (65.5 ) (13.7 ) (96.8 ) — Net earnings $ 46.3 $ 77.2 $ 19.2 $ (96.4 ) $ 46.3 Total comprehensive income $ 41.6 $ 77.2 $ 14.3 $ (96.4 ) $ 36.7 Meredith Corporation and Subsidiaries Condensed Consolidated Statement of Comprehensive Income For the Year Ended June 30, 2018 Meredith Corporation Guarantor Non-Guarantor Eliminations Consolidated (In millions) Revenues Advertising related $ 625.7 $ 561.3 $ 3.7 $ — $ 1,190.7 Consumer related 545.9 414.8 21.6 (61.0 ) 921.3 All other 33.2 58.5 87.3 (26.8 ) 152.2 Total revenues 1,204.8 1,034.6 112.6 (87.8 ) 2,264.2 Operating expenses Production, distribution, and editorial 488.7 420.4 42.1 (83.2 ) 868.0 Selling, general, and administrative 509.5 432.1 49.7 (3.8 ) 987.5 Acquisition, disposition, and restructuring related activities 58.4 111.7 — — 170.1 Depreciation and amortization 33.3 94.4 1.3 — 129.0 Impairment of long-lived assets 22.7 — — — 22.7 Total operating expenses 1,112.6 1,058.6 93.1 (87.0 ) 2,177.3 Income (loss) from operations 92.2 (24.0 ) 19.5 (0.8 ) 86.9 Non-operating income (expense), net (9.1 ) 0.6 9.2 — 0.7 Interest income (expense), net (95.4 ) 7.2 (9.0 ) — (97.2 ) Earnings (loss) from continuing operations before income taxes (12.3 ) (16.2 ) 19.7 (0.8 ) (9.6 ) Income taxes benefit (expense) 116.6 8.4 (1.4 ) — 123.6 Earnings (loss) from continuing operations 104.3 (7.8 ) 18.3 (0.8 ) 114.0 Gain (loss) from discontinued operations, net of income taxes (12.2 ) 18.6 (21.0 ) — (14.6 ) Earnings (loss) before equity income (loss) 92.1 10.8 (2.7 ) (0.8 ) 99.4 Earnings (loss) from equity in subsidiaries 7.3 6.9 (10.7 ) (3.5 ) — Net earnings (loss) $ 99.4 $ 17.7 $ (13.4 ) $ (4.3 ) $ 99.4 Total comprehensive income (loss) $ 101.5 $ 17.7 $ (29.2 ) $ (4.3 ) $ 85.7 Meredith Corporation and Subsidiaries Condensed Consolidated Statement of Comprehensive Income For the Year Ended June 30, 2017 Meredith Corporation Guarantor Non-Guarantor Eliminations Consolidated (In millions) Revenues Advertising related $ 671.6 $ 260.7 $ 1.8 $ — $ 934.1 Consumer related 524.6 78.6 10.3 — 613.5 All other 42.9 1.8 121.0 — 165.7 Total revenues 1,239.1 341.1 133.1 — 1,713.3 Operating expenses Production, distribution, and editorial 477.1 100.2 31.1 — 608.4 Selling, general, and administrative 538.6 105.4 82.4 — 726.4 Acquisition, disposition, and restructuring related activities 8.3 — 2.0 — 10.3 Depreciation and amortization 37.6 15.7 0.5 — 53.8 Impairment of goodwill and other long-lived assets 0.9 5.3 — — 6.2 Total operating expenses 1,062.5 226.6 116.0 — 1,405.1 Income from operations 176.6 114.5 17.1 — 308.2 Non-operating income, net 0.9 — — — 0.9 Interest expense, net (14.2 ) — (4.6 ) — (18.8 ) Earnings before income taxes 163.3 114.5 12.5 — 290.3 Income tax expense (51.7 ) (45.5 ) (4.2 ) — (101.4 ) Earnings before equity income 111.6 69.0 8.3 — 188.9 Earnings from equity in subsidiaries 77.3 — — (77.3 ) — Net earnings $ 188.9 $ 69.0 $ 8.3 $ (77.3 ) $ 188.9 Total comprehensive income $ 198.4 $ 69.0 $ 8.3 $ (77.3 ) $ 198.4 |
Condensed Consolidated Statement of Cash Flows | Meredith Corporation and Subsidiaries Condensed Consolidated Statement of Cash Flows For the Year Ended June 30, 2019 Meredith Corporation Guarantor Non-Guarantor Eliminations Consolidated (In millions) Cash flows from operating activities $ (0.3 ) $ 403.8 $ (158.2 ) $ — $ 245.3 Cash flows from investing activities Acquisition of and investments in businesses, net of cash acquired (18.4 ) — — — (18.4 ) Proceeds from disposition of assets, net of cash sold 13.3 334.5 1.3 — 349.1 Proceeds received in advance of sale of business — 90.0 — — 90.0 Additions to property, plant, and equipment (37.5 ) (8.8 ) (0.1 ) — (46.4 ) Net cash provided by (used in) investing activities (42.6 ) 415.7 1.2 — 374.3 Cash flows from financing activities Proceeds from issuance of long-term debt 210.0 — — — 210.0 Repayments of long-term debt (1,037.0 ) — — — (1,037.0 ) Dividends paid (161.9 ) — — — (161.9 ) Purchases of Company stock (10.0 ) — — — (10.0 ) Proceeds from common stock issued 4.6 — — — 4.6 Payment of acquisition related contingent consideration (19.3 ) — — — (19.3 ) Net increase (decrease) in intercompany obligations 891.8 (1,019.1 ) 127.3 — — Net cash provided by (used in) financing activities (121.8 ) (1,019.1 ) 127.3 — (1,013.6 ) Effect of exchange rate changes on cash and cash equivalents — — (1.4 ) — (1.4 ) Change in cash held-for-sale — — 2.8 — 2.8 Net decrease in cash and cash equivalents (164.7 ) (199.6 ) (28.3 ) — (392.6 ) Cash and cash equivalents at beginning of year 195.0 202.8 39.8 — 437.6 Cash and cash equivalents at end of year $ 30.3 $ 3.2 $ 11.5 $ — $ 45.0 Meredith Corporation and Subsidiaries Condensed Consolidated Statement of Cash Flows For the Year Ended June 30, 2018 Meredith Corporation Guarantor Non-Guarantor Eliminations Consolidated (In millions) Cash flows from operating activities $ (465.4 ) $ 515.3 $ 100.0 $ — $ 149.9 Cash flows from investing activities Acquisition of and investments in businesses, net of cash acquired (2,786.5 ) — — — (2,786.5 ) Proceeds from disposition of assets, net of cash sold 86.4 — 132.8 — 219.2 Additions to property, plant, and equipment (41.2 ) (11.6 ) (0.4 ) — (53.2 ) Other 3.8 — — — 3.8 Net cash provided by (used in) investing activities (2,737.5 ) (11.6 ) 132.4 — (2,616.7 ) Cash flows from financing activities Proceeds from issuance of long-term debt 3,260.0 — — — 3,260.0 Repayments of long-term debt (689.7 ) — (75.4 ) — (765.1 ) Issued preferred stock, warrants, and options proceeds, net of issuance costs 631.0 — — — 631.0 Dividends paid (121.5 ) — — — (121.5 ) Purchases of Company stock (31.1 ) — — — (31.1 ) Proceeds from common stock issued 19.3 — — — 19.3 Payment of acquisition related contingent consideration (3.2 ) (1.1 ) — — (4.3 ) Debt acquisition costs (70.8 ) — — — (70.8 ) Net increase (decrease) in intercompany obligations 382.1 (299.8 ) (82.3 ) — — Net cash provided by (used in) financing activities 3,376.1 (300.9 ) (157.7 ) — 2,917.5 Effect of exchange rate changes on cash and cash equivalents — — (4.1 ) — (4.1 ) Change in cash held for sale — — (31.3 ) — (31.3 ) Net increase in cash and cash equivalents 173.2 202.8 39.3 — 415.3 Cash and cash equivalents at beginning of year 21.8 — 0.5 — 22.3 Cash and cash equivalents at end of year $ 195.0 $ 202.8 $ 39.8 $ — $ 437.6 Meredith Corporation and Subsidiaries Condensed Consolidated Statement of Cash Flows For the Year Ended June 30, 2017 Meredith Corporation Guarantor Non-Guarantor Eliminations Consolidated (In millions) Cash flows from operating activities $ 240.0 $ 22.8 $ (44.2 ) $ — $ 218.6 Cash flows from investing activities Acquisition of and investments in businesses, net of cash acquired (84.4 ) — — — (84.4 ) Proceeds from disposition of assets, net of cash sold 1.5 — — — 1.5 Additions to property, plant, and equipment (28.8 ) (6.0 ) — — (34.8 ) Net cash used in investing activities (111.7 ) (6.0 ) — — (117.7 ) Cash flows from financing activities Proceeds from issuance of long-term debt 365.0 — 15.0 — 380.0 Repayments of long-term debt (354.4 ) — (20.0 ) — (374.4 ) Dividends paid (91.9 ) — — — (91.9 ) Purchases of Company stock (53.3 ) — — — (53.3 ) Proceeds from common stock issued 38.0 — — — 38.0 Excess tax benefits from share-based payments 6.8 — — — 6.8 Payment of acquisition related contingent consideration (7.3 ) — — — (7.3 ) Debt acquisition costs (1.5 ) — — — (1.5 ) Net increase (decrease) in intercompany obligations (32.1 ) (16.8 ) 48.9 — — Net cash provided by (used in) financing activities (130.7 ) (16.8 ) 43.9 — (103.6 ) Net decrease in cash and cash equivalents (2.4 ) — (0.3 ) — (2.7 ) Cash and cash equivalents at beginning of year 24.2 — 0.8 — 25.0 Cash and cash equivalents at end of year $ 21.8 $ — $ 0.5 $ — $ 22.3 |
Selected Quarterly Financial _2
Selected Quarterly Financial Data (unaudited) (Tables) | 12 Months Ended |
Jun. 30, 2019 | |
Selected Quarterly Financial Information [Abstract] | |
Schedule of Quarterly Financial Information | Year ended June 30, 2018 First Quarter Second Quarter Third Quarter Fourth Quarter Total (In millions except per share data) Revenues National media $ 239.0 $ 247.4 $ 485.6 $ 600.6 $ 1,572.6 Local media 153.8 170.3 170.1 198.9 693.1 Intersegment elimination — — (0.7 ) (0.8 ) (1.5 ) Total revenues $ 392.8 $ 417.7 $ 655.0 $ 798.7 $ 2,264.2 Operating profit National media $ 27.5 $ 11.6 $ 4.5 $ 41.4 $ 85.0 Local media 40.3 49.9 38.3 58.2 186.7 Unallocated corporate (11.6 ) (24.8 ) (115.3 ) (33.1 ) (184.8 ) Income (loss) from operations $ 56.2 $ 36.7 $ (72.5 ) $ 66.5 $ 86.9 Earnings (loss) from continuing operations $ 33.4 $ 159.4 $ (95.4 ) $ 16.6 $ 114.0 Discontinued operations — — (14.9 ) 0.3 (14.6 ) Net earnings (loss) $ 33.4 $ 159.4 $ (110.3 ) $ 16.9 $ 99.4 Basic earnings (loss) per share attributable to common shareholders Earnings (loss) from continuing operations $ 0.75 $ 3.55 $ (2.41 ) $ (0.06 ) $ 1.80 Net earnings (loss) 0.75 3.55 (2.74 ) (0.06 ) 1.48 Diluted earnings (loss) per share attributable to common shareholders Earnings (loss) from continuing operations 0.73 3.49 (2.41 ) (0.06 ) 1.79 Net earnings (loss) 0.73 3.49 (2.74 ) (0.06 ) 1.47 Dividends per share 0.520 0.520 0.545 0.545 2.130 Year ended June 30, 2019 First Quarter Second Quarter Third Quarter Fourth Quarter Total (In millions except per share data) Revenues National media $ 560.6 $ 616.2 $ 562.3 $ 587.5 $ 2,326.6 Local media 214.4 262.4 188.4 198.6 863.8 Intersegment elimination (0.6 ) (0.2 ) (0.6 ) (0.5 ) (1.9 ) Total revenues $ 774.4 $ 878.4 $ 750.1 $ 785.6 $ 3,188.5 Operating profit National media $ 18.1 $ 47.0 $ 54.5 $ 6.4 $ 126.0 Local media 67.5 106.6 41.6 62.6 278.3 Unallocated corporate (31.4 ) (19.9 ) (20.5 ) (45.5 ) (117.3 ) Income from operations $ 54.2 $ 133.7 $ 75.6 $ 23.5 $ 287.0 Earnings (loss) from continuing operations $ 16.2 $ 88.1 $ 28.4 $ (3.6 ) 129.1 Discontinued operations 0.8 (69.5 ) (4.7 ) (9.4 ) (82.8 ) Net earnings (loss) $ 17.0 $ 18.6 $ 23.7 $ (13.0 ) $ 46.3 Basic earnings (loss) per share attributable to common shareholders Earnings (loss) from continuing operations $ (0.07 ) $ 1.50 $ 0.20 $ (0.51 ) $ 1.12 Net earnings (loss) (0.06 ) (0.03 ) 0.10 (0.72 ) (0.71 ) Diluted earnings (loss) per share attributable to common shareholders Earnings (loss) from continuing operations (0.07 ) 1.46 0.20 (0.51 ) 1.12 Net earnings (loss) (0.06 ) (0.01 ) 0.10 (0.72 ) (0.70 ) Dividends per share 0.545 0.545 0.575 0.575 2.240 |
Summary of Significant Accoun_3
Summary of Significant Accounting Policies (Narrative) (Details) $ / shares in Units, $ in Thousands | 3 Months Ended | 12 Months Ended | ||||
Mar. 31, 2018USD ($) | Jun. 30, 2019USD ($)segmentreporting_unitstation$ / sharesshares | Jun. 30, 2018USD ($)$ / sharesshares | Jun. 30, 2017USD ($) | Jul. 01, 2018USD ($) | Jan. 30, 2018$ / shares | |
Accounting Policies [Abstract] | ||||||
Number of reportable segments | segment | 2 | |||||
Number of owned television stations | station | 17 | |||||
New Accounting Pronouncements or Change in Accounting Principle [Line Items] | ||||||
Cash and cash equivalents | $ 45,000 | $ 437,600 | ||||
LIFO inventory income recognized | $ 1,300 | (1,300) | $ (1,700) | |||
Capitalized contract cost, net | 515,900 | |||||
Depreciation | $ 92,500 | 54,200 | 34,700 | |||
Number of reporting units | reporting_unit | 2 | |||||
Advertising expenses | $ 193,300 | $ 86,300 | 63,500 | |||
Likelihood of recognized income tax positions are sustained, minimum percentage | 50.00% | |||||
Preferred stock issued (in shares) | shares | 700,000 | 700,000 | ||||
Preferred stock par value (in usd per share) | $ / shares | $ 1 | $ 1 | ||||
Liquidation preference per share (in usd per share) | $ / shares | $ 1,000 | $ 1,000 | ||||
Retained earnings | $ 759,000 | $ 889,800 | ||||
Reclassification of contingent considerations to operating activities | $ 300 | |||||
Minimum | ||||||
New Accounting Pronouncements or Change in Accounting Principle [Line Items] | ||||||
Amortization period for subscription acquisition costs | 1 year | |||||
Maximum | ||||||
New Accounting Pronouncements or Change in Accounting Principle [Line Items] | ||||||
Amortization period for subscription acquisition costs | 2 years | |||||
Stop loss contract amount to cap self-insured medical claims | $ 500 | |||||
Series A Preferred Stock | ||||||
New Accounting Pronouncements or Change in Accounting Principle [Line Items] | ||||||
Preferred stock issued (in shares) | shares | 650,000 | |||||
Preferred stock par value (in usd per share) | $ / shares | $ 1 | |||||
Liquidation preference per share (in usd per share) | $ / shares | $ 1,000 | |||||
Buildings and improvements | Minimum | ||||||
New Accounting Pronouncements or Change in Accounting Principle [Line Items] | ||||||
Property, plant and equipment estimated useful lives | 5 years | |||||
Buildings and improvements | Maximum | ||||||
New Accounting Pronouncements or Change in Accounting Principle [Line Items] | ||||||
Property, plant and equipment estimated useful lives | 45 years | |||||
Capitalized software | Minimum | ||||||
New Accounting Pronouncements or Change in Accounting Principle [Line Items] | ||||||
Property, plant and equipment estimated useful lives | 3 years | |||||
Capitalized software | Maximum | ||||||
New Accounting Pronouncements or Change in Accounting Principle [Line Items] | ||||||
Property, plant and equipment estimated useful lives | 6 years | |||||
Machinery and equipment | Minimum | ||||||
New Accounting Pronouncements or Change in Accounting Principle [Line Items] | ||||||
Property, plant and equipment estimated useful lives | 3 years | |||||
Machinery and equipment | Maximum | ||||||
New Accounting Pronouncements or Change in Accounting Principle [Line Items] | ||||||
Property, plant and equipment estimated useful lives | 20 years | |||||
Network | Minimum | ||||||
New Accounting Pronouncements or Change in Accounting Principle [Line Items] | ||||||
Amortizable intangible assets estimated useful lives (in years) | 25 years | |||||
Network | Maximum | ||||||
New Accounting Pronouncements or Change in Accounting Principle [Line Items] | ||||||
Amortizable intangible assets estimated useful lives (in years) | 40 years | |||||
Finite-lived intangible assets, excluding network affiliation agreements | Minimum | ||||||
New Accounting Pronouncements or Change in Accounting Principle [Line Items] | ||||||
Amortizable intangible assets estimated useful lives (in years) | 1 year | |||||
Finite-lived intangible assets, excluding network affiliation agreements | Maximum | ||||||
New Accounting Pronouncements or Change in Accounting Principle [Line Items] | ||||||
Amortizable intangible assets estimated useful lives (in years) | 10 years | |||||
FCC licenses | ||||||
New Accounting Pronouncements or Change in Accounting Principle [Line Items] | ||||||
Maximum term of FCC broadcast licenses (in years) | 8 years | |||||
Geographic Distribution, Domestic | ||||||
New Accounting Pronouncements or Change in Accounting Principle [Line Items] | ||||||
Cash and cash equivalents | $ 34,200 | |||||
Geographic Distribution, Foreign | ||||||
New Accounting Pronouncements or Change in Accounting Principle [Line Items] | ||||||
Cash and cash equivalents | 10,800 | |||||
Quoted Prices (Level 1) | ||||||
New Accounting Pronouncements or Change in Accounting Principle [Line Items] | ||||||
Cash and cash equivalents | 9,700 | |||||
Money Market Funds | Geographic Distribution, Domestic | ||||||
New Accounting Pronouncements or Change in Accounting Principle [Line Items] | ||||||
Cash and cash equivalents | 6,800 | |||||
Retained Earnings | Difference between Revenue Guidance in Effect before and after Topic 606 | Accounting Standards Update 2014-09 | ||||||
New Accounting Pronouncements or Change in Accounting Principle [Line Items] | ||||||
Retained earnings | $ 2,400 | |||||
Adjustment | Accounting Standards Update 2016-15 | ||||||
New Accounting Pronouncements or Change in Accounting Principle [Line Items] | ||||||
Reclassification of contingent considerations from financing activities | 800 | 700 | ||||
Reclassification of contingent considerations to operating activities | 800 | 700 | ||||
Reclassification of cash proceeds from corporate owned life insurance from operating activities | 700 | |||||
Reclassification of cash proceeds from corporate owned life insurance to investing activities | 700 | |||||
Production, distribution, and editorial | ||||||
New Accounting Pronouncements or Change in Accounting Principle [Line Items] | ||||||
Net periodic pension and postretirement benefit costs | 2,600 | 3,200 | 5,500 | |||
Selling, General and Administrative Expenses | ||||||
New Accounting Pronouncements or Change in Accounting Principle [Line Items] | ||||||
Net periodic pension and postretirement benefit costs | 12,900 | 9,100 | 4,600 | |||
Nonoperating income (expense) | ||||||
New Accounting Pronouncements or Change in Accounting Principle [Line Items] | ||||||
Net periodic pension and postretirement benefit costs | $ 15,500 | $ (12,300) | $ 900 |
Summary of Significant Accoun_4
Summary of Significant Accounting Policies (Subscription Acquisition Costs) (Details) - USD ($) $ in Millions | 12 Months Ended | |
Jun. 30, 2019 | Jun. 30, 2018 | |
Deferred Costs, Capitalized, Prepaid, and Other Assets [Line Items] | ||
Capitalized Contract Cost, Net | $ 515.9 | |
Minimum | ||
Deferred Costs, Capitalized, Prepaid, and Other Assets [Line Items] | ||
Amortization period for subscription acquisition costs | 1 year | |
Maximum | ||
Deferred Costs, Capitalized, Prepaid, and Other Assets [Line Items] | ||
Amortization period for subscription acquisition costs | 2 years | |
Advertising related | ||
Deferred Costs, Capitalized, Prepaid, and Other Assets [Line Items] | ||
Capitalized Contract Cost, Net | $ 8.2 | $ 7.6 |
Summary of Significant Accoun_5
Summary of Significant Accounting Policies (Property, Plant, and Equipment) (Details) - USD ($) $ in Millions | 12 Months Ended | ||
Jun. 30, 2019 | Jun. 30, 2018 | Jun. 30, 2017 | |
Property, Plant and Equipment [Line Items] | |||
Depreciation and amortization | $ 92.5 | $ 54.2 | $ 34.7 |
Minimum | Buildings and improvements | |||
Property, Plant and Equipment [Line Items] | |||
Property, plant and equipment estimated useful lives | 5 years | ||
Minimum | Capitalized software | |||
Property, Plant and Equipment [Line Items] | |||
Property, plant and equipment estimated useful lives | 3 years | ||
Minimum | Machinery and equipment | |||
Property, Plant and Equipment [Line Items] | |||
Property, plant and equipment estimated useful lives | 3 years | ||
Maximum | Buildings and improvements | |||
Property, Plant and Equipment [Line Items] | |||
Property, plant and equipment estimated useful lives | 45 years | ||
Maximum | Capitalized software | |||
Property, Plant and Equipment [Line Items] | |||
Property, plant and equipment estimated useful lives | 6 years | ||
Maximum | Machinery and equipment | |||
Property, Plant and Equipment [Line Items] | |||
Property, plant and equipment estimated useful lives | 20 years |
Summary of Significant Accoun_6
Summary of Significant Accounting Policies (Intangible Assets and Goodwill) (Details) | 12 Months Ended |
Jun. 30, 2019reporting_unit | |
Finite and Indefinite-lived Intangible Assets by Major Class [Line Items] | |
Number of reporting units | 2 |
FCC licenses | |
Finite and Indefinite-lived Intangible Assets by Major Class [Line Items] | |
Maximum term of FCC broadcast licenses (in years) | 8 years |
Minimum | Network | |
Finite and Indefinite-lived Intangible Assets by Major Class [Line Items] | |
Amortizable intangible assets estimated useful lives (in years) | 25 years |
Minimum | Finite-lived intangible assets, excluding network affiliation agreements | |
Finite and Indefinite-lived Intangible Assets by Major Class [Line Items] | |
Amortizable intangible assets estimated useful lives (in years) | 1 year |
Maximum | Network | |
Finite and Indefinite-lived Intangible Assets by Major Class [Line Items] | |
Amortizable intangible assets estimated useful lives (in years) | 40 years |
Maximum | Finite-lived intangible assets, excluding network affiliation agreements | |
Finite and Indefinite-lived Intangible Assets by Major Class [Line Items] | |
Amortizable intangible assets estimated useful lives (in years) | 10 years |
Acquisitions (Fiscal 2019 Narra
Acquisitions (Fiscal 2019 Narrative) (Details) - USD ($) $ in Millions | Feb. 28, 2019 | Jun. 30, 2019 | Mar. 31, 2019 | Dec. 31, 2018 | Sep. 30, 2018 | Jun. 30, 2018 | Mar. 31, 2018 | Dec. 31, 2017 | Jun. 30, 2019 | Jun. 30, 2017 |
Business Acquisition [Line Items] | ||||||||||
Goodwill | $ 1,979.4 | $ 1,915.8 | $ 1,979.4 | $ 907.5 | ||||||
Acquisition related costs | 39.3 | $ 16.8 | $ 27.7 | $ 23.4 | $ 31.1 | $ 153 | $ 12.1 | $ 0.1 | $ 0.3 | |
Partner relationships | ||||||||||
Business Acquisition [Line Items] | ||||||||||
Useful life | 10 years | |||||||||
Other | Minimum | ||||||||||
Business Acquisition [Line Items] | ||||||||||
Useful life | 1 year | |||||||||
Other | Maximum | ||||||||||
Business Acquisition [Line Items] | ||||||||||
Useful life | 6 years | |||||||||
Linfield Media | ||||||||||
Business Acquisition [Line Items] | ||||||||||
Percentage of voting interests acquired | 100.00% | |||||||||
Cash | $ 16.6 | $ 16.6 | ||||||||
Goodwill | $ 10.6 | $ 10.6 |
Acquisitions (Summary of Estima
Acquisitions (Summary of Estimated Fair Value of Assets Acquired and Liabilities Assumed) (Details) - USD ($) $ in Millions | Feb. 28, 2019 | Jan. 31, 2018 | Jun. 30, 2019 | Jun. 30, 2018 | Jun. 30, 2017 |
Recognized amounts of identifiable assets acquired and liabilities assumed | |||||
Goodwill | $ 1,979.4 | $ 1,915.8 | $ 907.5 | ||
Linfield Media | |||||
Consideration | |||||
Cash | $ 16.6 | 16.6 | |||
Recognized amounts of identifiable assets acquired and liabilities assumed | |||||
Intangible assets | $ 4.4 | ||||
Total identifiable assets acquired | 6 | ||||
Total liabilities assumed | 0 | ||||
Total identified net assets | 6 | ||||
Goodwill | 10.6 | ||||
Net assets acquired | $ 16.6 | ||||
Time, Inc. | |||||
Consideration | |||||
Cash | $ 3,226.2 | ||||
Recognized amounts of identifiable assets acquired and liabilities assumed | |||||
Cash and cash equivalents | 399.9 | ||||
Accounts receivable | 293.4 | ||||
Inventory | 22.8 | ||||
Assets held-for-sale | 962.2 | ||||
Other current assets | 60.5 | ||||
Total current assets | 1,738.8 | ||||
Property, plant, and equipment | 300.8 | ||||
Other assets | 98 | ||||
Intangible assets | 1,147.8 | ||||
Total identifiable assets acquired | 3,285.4 | ||||
Accounts payable | 140.3 | ||||
Accrued liabilities | 195.8 | ||||
Current portion of unearned revenues | 198.5 | ||||
Liabilities associated with assets held-for-sale | 305.5 | ||||
Total current liabilities | 840.1 | ||||
Unearned revenues | 45 | ||||
Deferred income taxes | 176.9 | ||||
Other noncurrent liabilities | 104.4 | ||||
Total liabilities assumed | 1,166.4 | ||||
Total identified net assets | 2,119 | ||||
Goodwill | 1,107.8 | ||||
Net assets acquired | $ 3,226.8 |
Acquisitions (Schedule of Inden
Acquisitions (Schedule of Indentifiable Acquired Intangible Assets by Acquisition) (Details) - USD ($) $ in Millions | Feb. 28, 2019 | Jan. 31, 2018 |
Linfield Media | ||
Finite-Lived and Indefinite-Lived Intangible Assets Acquired as Part of Business Combination [Line Items] | ||
Intangible assets | $ 4.4 | |
Linfield Media | Partner relationships | ||
Finite-Lived and Indefinite-Lived Intangible Assets Acquired as Part of Business Combination [Line Items] | ||
Intangible assets subject to amortization | 3.2 | |
Linfield Media | Other | ||
Finite-Lived and Indefinite-Lived Intangible Assets Acquired as Part of Business Combination [Line Items] | ||
Intangible assets subject to amortization | $ 1.2 | |
Time, Inc. | ||
Finite-Lived and Indefinite-Lived Intangible Assets Acquired as Part of Business Combination [Line Items] | ||
Intangible assets subject to amortization | $ 506.8 | |
Intangible assets | 1,147.8 | |
Time, Inc. | Trademarks | ||
Finite-Lived and Indefinite-Lived Intangible Assets Acquired as Part of Business Combination [Line Items] | ||
Intangible assets not subject to amortization | 641 | |
Time, Inc. | Advertiser relationships | ||
Finite-Lived and Indefinite-Lived Intangible Assets Acquired as Part of Business Combination [Line Items] | ||
Intangible assets subject to amortization | 223.5 | |
Time, Inc. | Publisher relationships | ||
Finite-Lived and Indefinite-Lived Intangible Assets Acquired as Part of Business Combination [Line Items] | ||
Intangible assets subject to amortization | 125 | |
Time, Inc. | Partner relationships | ||
Finite-Lived and Indefinite-Lived Intangible Assets Acquired as Part of Business Combination [Line Items] | ||
Intangible assets subject to amortization | 95 | |
Time, Inc. | Customer relationships | ||
Finite-Lived and Indefinite-Lived Intangible Assets Acquired as Part of Business Combination [Line Items] | ||
Intangible assets subject to amortization | $ 63.3 |
Acquisitions (Fiscal 2018 Narra
Acquisitions (Fiscal 2018 Narrative) (Details) $ / shares in Units, visitor in Millions, reader in Millions, consumer in Millions, Copy in Millions | Jan. 31, 2018USD ($)visitorconsumerCopyreaderreporting_unit$ / shares | Mar. 31, 2019USD ($) | Dec. 31, 2018USD ($) | Sep. 30, 2018USD ($) | Jun. 30, 2019USD ($) | Jun. 30, 2018USD ($) | Jun. 30, 2017USD ($) |
Business Acquisition [Line Items] | |||||||
Warrant exercise price (in usd per share) | $ / shares | $ 1 | ||||||
Acquisitions of and investments in businesses, net of cash acquired | $ 18,400,000 | $ 2,786,500,000 | $ 84,400,000 | ||||
Long-term debt | 2,333,300,000 | 3,135,600,000 | |||||
Goodwill | 1,979,400,000 | 1,915,800,000 | 907,500,000 | ||||
Selling, general, and administrative | $ (346,000,000) | $ (350,300,000) | (1,350,000,000) | (987,500,000) | (726,400,000) | ||
Income tax expense | 11,500,000 | (123,600,000) | $ 101,400,000 | ||||
Senior Notes | 2026 Senior Notes | |||||||
Business Acquisition [Line Items] | |||||||
Long-term debt | $ 1,251,400,000 | 1,373,500,000 | |||||
Debt instrument, face amount | $ 1,400,000,000 | ||||||
Variable-rate credit facility | Secured Debt | Senior Secured Term Loan Due 2025 | |||||||
Business Acquisition [Line Items] | |||||||
Long-term debt | $ 1,800,000,000 | ||||||
Partner relationships | |||||||
Business Acquisition [Line Items] | |||||||
Weighted average useful life | 10 years | ||||||
Adjustment | |||||||
Business Acquisition [Line Items] | |||||||
Selling, general, and administrative | $ (15,700,000) | $ (12,500,000) | (9,000,000) | ||||
Time, Inc. | |||||||
Business Acquisition [Line Items] | |||||||
Warrant exercise price (in usd per share) | $ / shares | $ 18.50 | ||||||
Acquisitions of and investments in businesses, net of cash acquired | $ 3,200,000,000 | ||||||
Number of American consumers | consumer | 175 | ||||||
Number of readers (more than) | reader | 120 | ||||||
Number of monthly unique visitors | visitor | 135 | ||||||
Number of business units | reporting_unit | 1 | ||||||
Increase in goodwill | $ 24,600,000 | ||||||
Reduction of assets held-for-sale | 19,900,000 | ||||||
Increase in deferred income tax liabilities | $ 4,700,000 | ||||||
Gross contractual trade receivables acquired | $ 360,300,000 | ||||||
Contractual amount not expected to be collected | 66,900,000 | ||||||
Goodwill | 1,107,800,000 | ||||||
Expected tax deductible amount | $ 93,600,000 | ||||||
Transaction and integration related costs | $ 59,900,000 | ||||||
Time, Inc. | Minimum | |||||||
Business Acquisition [Line Items] | |||||||
Number of copies in circulation (more than) | Copy | 40 | ||||||
Time, Inc. | Advertiser relationships | |||||||
Business Acquisition [Line Items] | |||||||
Weighted average useful life | 3 years | ||||||
Time, Inc. | Publisher relationships | |||||||
Business Acquisition [Line Items] | |||||||
Weighted average useful life | 7 years | ||||||
Time, Inc. | Partner relationships | |||||||
Business Acquisition [Line Items] | |||||||
Weighted average useful life | 6 years | ||||||
Time, Inc. | Customer lists | |||||||
Business Acquisition [Line Items] | |||||||
Weighted average useful life | 2 years | ||||||
Opening balance sheet impact | Adjustment | |||||||
Business Acquisition [Line Items] | |||||||
Goodwill | $ 7,400,000 | ||||||
Selling, general, and administrative | 10,000,000 | ||||||
Income tax expense | $ 2,600,000 |
Acquisitions (Summary of Purcha
Acquisitions (Summary of Purchase Price Consideration) (Details) - Time, Inc. $ in Millions | Jan. 31, 2018USD ($) |
Business Acquisition [Line Items] | |
Consideration paid to Time shareholders | $ 1,860.7 |
Repayment of Time’s outstanding debt, including prepayment penalty | 1,327.9 |
Cash consideration issued to settle outstanding share-based equity awards | 37.6 |
Total cash consideration | 3,226.2 |
Share-based equity awards issued to settle outstanding share-based equity awards | 33.8 |
Total consideration issued | 3,260 |
Portion of cash settlement of outstanding share-based equity awards recognized as expense | (9.2) |
Portion of share-based equity awards issued to be recognized as an expense, primarily through fiscal 2021 | (24) |
Total purchase price consideration | $ 3,226.8 |
Acquisitions (Summary of Pro Fo
Acquisitions (Summary of Pro Forma Information) (Details) - USD ($) $ in Millions | 12 Months Ended | ||
Jun. 30, 2019 | Jun. 30, 2018 | Jun. 30, 2017 | |
Business Acquisition [Line Items] | |||
Time net earnings (loss) from continuing operations before income tax | $ 46.3 | $ 99.4 | $ 188.9 |
Time, Inc. | |||
Business Acquisition [Line Items] | |||
Time total revenues | 625.3 | ||
Time net earnings (loss) from continuing operations before income tax | $ (74.4) |
Acquisitions (Schedule of Accou
Acquisitions (Schedule of Accounting Changes and Error Corrections) (Details) - USD ($) $ in Millions | 3 Months Ended | 12 Months Ended | ||||||||||
Jun. 30, 2019 | Mar. 31, 2019 | Dec. 31, 2018 | Sep. 30, 2018 | Jun. 30, 2018 | Mar. 31, 2018 | Dec. 31, 2017 | Sep. 30, 2017 | Jun. 30, 2019 | Jun. 30, 2018 | Jun. 30, 2017 | Jul. 01, 2018 | |
Error Corrections and Prior Period Adjustments Restatement [Line Items] | ||||||||||||
Current portion of subscription acquisition costs | $ 242 | $ 145 | $ 242 | $ 145 | ||||||||
Assets held-for-sale | 321 | 719.8 | 321 | 719.8 | ||||||||
Subscription acquisition costs | 273.9 | 66.3 | 273.9 | 66.3 | ||||||||
Current portion of unearned revenues | 458.9 | 393.5 | 458.9 | 393.5 | ||||||||
Liabilities associated with assets held-for-sale | 252.1 | 200 | 252.1 | 200 | ||||||||
Unearned revenues | 318.6 | 132.3 | 318.6 | 132.3 | $ 132.3 | |||||||
Consumer related revenue | $ 785.6 | $ 750.1 | $ 878.4 | $ 774.4 | 798.7 | $ 655 | $ 417.7 | $ 392.8 | 3,188.5 | 2,264.2 | $ 1,713.3 | |
Selling, general, and administrative | 346 | 350.3 | 1,350 | 987.5 | 726.4 | |||||||
Consumer related revenue | ||||||||||||
Error Corrections and Prior Period Adjustments Restatement [Line Items] | ||||||||||||
Consumer related revenue | 358.3 | 316.1 | $ 1,393.6 | 921.3 | $ 613.5 | |||||||
As Reported | ||||||||||||
Error Corrections and Prior Period Adjustments Restatement [Line Items] | ||||||||||||
Current portion of subscription acquisition costs | 118.3 | 118.3 | ||||||||||
Assets held-for-sale | 708 | 708 | ||||||||||
Subscription acquisition costs | 61.1 | 61.1 | ||||||||||
Current portion of unearned revenues | 366.8 | 366.8 | ||||||||||
Liabilities associated with assets held-for-sale | 188.2 | 188.2 | ||||||||||
Unearned revenues | 127.1 | 127.1 | ||||||||||
Selling, general, and administrative | 330.3 | 337.8 | 978.5 | |||||||||
As Reported | Consumer related revenue | ||||||||||||
Error Corrections and Prior Period Adjustments Restatement [Line Items] | ||||||||||||
Consumer related revenue | 342.6 | 303.6 | 912.3 | |||||||||
Adjustment | ||||||||||||
Error Corrections and Prior Period Adjustments Restatement [Line Items] | ||||||||||||
Current portion of subscription acquisition costs | 26.7 | 26.7 | ||||||||||
Assets held-for-sale | 11.8 | 11.8 | ||||||||||
Subscription acquisition costs | 5.2 | 5.2 | ||||||||||
Current portion of unearned revenues | 26.7 | 26.7 | ||||||||||
Liabilities associated with assets held-for-sale | 11.8 | 11.8 | ||||||||||
Unearned revenues | $ 5.2 | 5.2 | ||||||||||
Selling, general, and administrative | 15.7 | 12.5 | 9 | |||||||||
Adjustment | Consumer related revenue | ||||||||||||
Error Corrections and Prior Period Adjustments Restatement [Line Items] | ||||||||||||
Consumer related revenue | $ 15.7 | $ 12.5 | $ 9 |
Acquisitions (Fiscal 2017 Narra
Acquisitions (Fiscal 2017 Narrative) (Details) - USD ($) | Apr. 21, 2017 | Dec. 07, 2016 | Jun. 30, 2019 | Mar. 31, 2019 | Dec. 31, 2018 | Sep. 30, 2018 | Jun. 30, 2018 | Mar. 31, 2018 | Dec. 31, 2017 | Jun. 30, 2019 | Jun. 30, 2018 | Jun. 30, 2017 |
Business Acquisition [Line Items] | ||||||||||||
Fair value adjustment to contingent consideration | $ (5,300,000) | $ (4,800,000) | $ (19,500,000) | |||||||||
Payment related to the fiscal 2018 EBITDA performance | 300,000 | |||||||||||
Goodwill | $ 1,979,400,000 | $ 1,915,800,000 | 1,979,400,000 | 1,915,800,000 | 907,500,000 | |||||||
Acquisition related costs | 39,300,000 | $ 16,800,000 | $ 27,700,000 | $ 23,400,000 | $ 31,100,000 | $ 153,000,000 | $ 12,100,000 | 100,000 | 300,000 | |||
FY 2017 Acquisition | ||||||||||||
Business Acquisition [Line Items] | ||||||||||||
Fair value of total consideration transferred | $ 21,100,000 | 0 | 2,600,000 | |||||||||
Payments for acquisitions of businesses | 13,400,000 | |||||||||||
Contingent consideration arrangements | $ 7,700,000 | |||||||||||
Fair value adjustment to contingent consideration | $ 3,800,000 | $ 400,000 | ||||||||||
Estimate of future aggregate contingent payments, low range | 600,000 | 600,000 | ||||||||||
Estimate of future aggregate contingent payments, high range | $ 1,100,000 | $ 1,100,000 | ||||||||||
Peachtree TV | ||||||||||||
Business Acquisition [Line Items] | ||||||||||||
Payments for acquisitions of businesses | $ 70,000,000 | |||||||||||
Peachtree TV and FY 2017 Acquisition | ||||||||||||
Business Acquisition [Line Items] | ||||||||||||
Goodwill | $ 24,300,000 |
Acquisitions (Prior to Fiscal 2
Acquisitions (Prior to Fiscal 2017 Narrative) (Details) - USD ($) $ in Millions | 12 Months Ended | ||
Jun. 30, 2019 | Jun. 30, 2018 | Jun. 30, 2017 | |
Business Acquisition [Line Items] | |||
Reduction in estimated contingent consideration payable | $ (5.3) | $ (4.8) | $ (19.5) |
Shape | |||
Business Acquisition [Line Items] | |||
Contingent consideration arrangements | 19 | ||
Reduction in estimated contingent consideration payable | $ 5.1 |
Inventories (Details)
Inventories (Details) - USD ($) $ in Millions | 3 Months Ended | 12 Months Ended | ||
Mar. 31, 2018 | Jun. 30, 2018 | Jun. 30, 2017 | Jun. 30, 2019 | |
Inventory Disclosure [Abstract] | ||||
LIFO inventory income recognized | $ (1.3) | $ 1.3 | $ 1.7 | |
Inventory, Net [Abstract] | ||||
Raw materials | 32.3 | $ 42.7 | ||
Work in process | 9.6 | 15.4 | ||
Finished goods | 2.5 | 4.6 | ||
Inventories | $ 44.4 | $ 62.7 |
Assets Held-for-Sale, Discont_3
Assets Held-for-Sale, Discontinued Operations, and Dispositions (Major Components of Assets and Liabilities Held-for-Sale) (Details) - USD ($) $ in Millions | Jun. 30, 2019 | Jun. 30, 2018 |
Current assets | ||
Total current assets | $ 321 | $ 719.8 |
Current liabilities | ||
Total current liabilities | 252.1 | 200 |
Discontinued operations, held-for-sale | ||
Current assets | ||
Cash and cash equivalents | 5.1 | 2.3 |
Accounts receivable, net | 78.1 | 91.4 |
Inventories | 0.1 | 0.9 |
Current portion of subscription acquisition costs | 34.4 | 10.4 |
Other current assets | 0.8 | 5.9 |
Total current assets | 118.5 | 110.9 |
Net property, plant, and equipment | 14.3 | 14.1 |
Subscription acquisition costs | 0 | 4.2 |
Other assets | 20.2 | 1 |
Intangible assets, net | 43.9 | 112.1 |
Goodwill | 124.1 | 477.5 |
Total assets held-for-sale | 321 | 719.8 |
Current liabilities | ||
Accounts payable | 45.2 | 44.9 |
Accrued expenses and other liabilities | 27.8 | 14.7 |
Current portion of unearned revenues | 67.9 | 110.6 |
Deferred sale proceeds | 73.2 | 0 |
Total current liabilities | 214.1 | 170.2 |
Unearned revenues | 37.6 | 29.1 |
Other noncurrent liabilities | 0.4 | 0.7 |
Total liabilities associated with assets held-for-sale | $ 252.1 | $ 200 |
Assets Held-for-Sale, Discont_4
Assets Held-for-Sale, Discontinued Operations, and Dispositions (Narrative) (Details) $ in Millions | Dec. 21, 2018USD ($) | Oct. 31, 2018USD ($) | Jul. 01, 2017USD ($) | Sep. 30, 2019USD ($) | May 31, 2019USD ($) | Sep. 30, 2018USD ($) | May 31, 2018USD ($) | Mar. 31, 2018USD ($)brand | Jun. 30, 2019USD ($) | Mar. 31, 2019USD ($) | Dec. 31, 2018USD ($) | Sep. 30, 2018USD ($) | Jun. 30, 2018USD ($) | Mar. 31, 2018USD ($) | Dec. 31, 2017USD ($) | Sep. 30, 2017USD ($) | Jun. 30, 2019USD ($) | Jun. 30, 2018USD ($) | Jun. 30, 2017USD ($) |
Income Statement, Balance Sheet and Additional Disclosures by Disposal Groups, Including Discontinued Operations [Line Items] | |||||||||||||||||||
Proceeds received in advance of sale of business | $ 90 | $ 0 | $ 0 | ||||||||||||||||
Total revenues | $ 785.6 | $ 750.1 | $ 878.4 | $ 774.4 | $ 798.7 | $ 655 | $ 417.7 | $ 392.8 | 3,188.5 | 2,264.2 | 1,713.3 | ||||||||
Goodwill, impairment loss | 54.9 | ||||||||||||||||||
Share-based compensation | 22.9 | 30.4 | 12.8 | ||||||||||||||||
Proceeds from disposition of assets, net of cash sold | 349.1 | 219.2 | 1.5 | ||||||||||||||||
Gain on equity method investment | (12.9) | ||||||||||||||||||
Earnings from continuing operations | (3.6) | $ 28.4 | $ 88.1 | $ 16.2 | 16.6 | (95.4) | $ 159.4 | $ 33.4 | 129.1 | 114 | 188.9 | ||||||||
Earnings (loss) from continuing operations before income taxes | 140.6 | (9.6) | 290.3 | ||||||||||||||||
MXM | |||||||||||||||||||
Income Statement, Balance Sheet and Additional Disclosures by Disposal Groups, Including Discontinued Operations [Line Items] | |||||||||||||||||||
Earnings from continuing operations | $ 11.5 | ||||||||||||||||||
Earnings (loss) from continuing operations before income taxes | (0.8) | $ 11.2 | |||||||||||||||||
Outsourcing Agreement | Other | |||||||||||||||||||
Income Statement, Balance Sheet and Additional Disclosures by Disposal Groups, Including Discontinued Operations [Line Items] | |||||||||||||||||||
Total revenues | 4.8 | ||||||||||||||||||
Transition Services Agreement | Selling, general and administrative expenses | |||||||||||||||||||
Income Statement, Balance Sheet and Additional Disclosures by Disposal Groups, Including Discontinued Operations [Line Items] | |||||||||||||||||||
Total revenues | $ 18.9 | ||||||||||||||||||
Minimum | Outsourcing Agreement | Selling, general and administrative expenses | |||||||||||||||||||
Income Statement, Balance Sheet and Additional Disclosures by Disposal Groups, Including Discontinued Operations [Line Items] | |||||||||||||||||||
OA term | 1 year | ||||||||||||||||||
Maximum | Outsourcing Agreement | Selling, general and administrative expenses | |||||||||||||||||||
Income Statement, Balance Sheet and Additional Disclosures by Disposal Groups, Including Discontinued Operations [Line Items] | |||||||||||||||||||
OA term | 5 years | ||||||||||||||||||
Discontinued operations, disposed of by sale | |||||||||||||||||||
Income Statement, Balance Sheet and Additional Disclosures by Disposal Groups, Including Discontinued Operations [Line Items] | |||||||||||||||||||
Gain on disposal | $ 2.1 | ||||||||||||||||||
Discontinued operations, disposed of by sale | Performance guarantee | |||||||||||||||||||
Income Statement, Balance Sheet and Additional Disclosures by Disposal Groups, Including Discontinued Operations [Line Items] | |||||||||||||||||||
Guarantee obligations, current carrying amount | 8 | 8.7 | 8 | 8.7 | |||||||||||||||
Discontinued operations, disposed of by sale | Time, Inc. | |||||||||||||||||||
Income Statement, Balance Sheet and Additional Disclosures by Disposal Groups, Including Discontinued Operations [Line Items] | |||||||||||||||||||
Proceeds received in advance of sale of business | $ 190 | ||||||||||||||||||
Discontinued operations, disposed of by sale | Fortune | |||||||||||||||||||
Income Statement, Balance Sheet and Additional Disclosures by Disposal Groups, Including Discontinued Operations [Line Items] | |||||||||||||||||||
Proceeds received in advance of sale of business | $ 150 | ||||||||||||||||||
Discontinued operations, disposed of by sale | Time Inc. (UK) Ltd | |||||||||||||||||||
Income Statement, Balance Sheet and Additional Disclosures by Disposal Groups, Including Discontinued Operations [Line Items] | |||||||||||||||||||
Number of brands | brand | 60 | ||||||||||||||||||
Discontinued operations, disposed of by sale | Time Inc. (UK) Ltd | Performance guarantee | |||||||||||||||||||
Income Statement, Balance Sheet and Additional Disclosures by Disposal Groups, Including Discontinued Operations [Line Items] | |||||||||||||||||||
Guarantee obligations, current carrying amount | $ 9.2 | 8 | $ 9.2 | 8 | |||||||||||||||
Maximum lease guarantee obligation | 66.9 | 66.9 | |||||||||||||||||
Discontinued operations, held-for-sale | |||||||||||||||||||
Income Statement, Balance Sheet and Additional Disclosures by Disposal Groups, Including Discontinued Operations [Line Items] | |||||||||||||||||||
Gain on disposal | (12.3) | ||||||||||||||||||
Share-based compensation | $ 0.5 | 3.7 | |||||||||||||||||
Discontinued operations, held-for-sale | Sports Illustrated | |||||||||||||||||||
Income Statement, Balance Sheet and Additional Disclosures by Disposal Groups, Including Discontinued Operations [Line Items] | |||||||||||||||||||
Proceeds received in advance of sale of business | $ 90 | ||||||||||||||||||
Goodwill, impairment loss | $ 8.5 | ||||||||||||||||||
Earn-out provision | $ 20 | ||||||||||||||||||
Discontinued operations, held-for-sale | Sports Illustrated | Forecast | |||||||||||||||||||
Income Statement, Balance Sheet and Additional Disclosures by Disposal Groups, Including Discontinued Operations [Line Items] | |||||||||||||||||||
Amount owing for accounts receivable and accounts payable | $ 11.6 | ||||||||||||||||||
Working capital true-up | $ 1.2 | ||||||||||||||||||
Disposal group, disposed of by sale, not discontinued operations | Charleston Tennis LLC | |||||||||||||||||||
Income Statement, Balance Sheet and Additional Disclosures by Disposal Groups, Including Discontinued Operations [Line Items] | |||||||||||||||||||
Proceeds received in advance of sale of business | $ 0.6 | ||||||||||||||||||
Ownership percentage interest | 70.00% | ||||||||||||||||||
Note receivable from other disposition | $ 8.5 | ||||||||||||||||||
Note receivable from other disposition, installment period | 8 years | ||||||||||||||||||
Note receivable from other disposition, unamortized discount | 3.2 | 3.2 | |||||||||||||||||
Note receivable from other disposition, allowance | $ 3 | $ 3 | |||||||||||||||||
Remeasurement gain (loss) on disposition of assets | $ 1 | ||||||||||||||||||
Ownership percentage retained | 30.00% | ||||||||||||||||||
Cash received | $ 13.3 | ||||||||||||||||||
Proceeds from disposition of assets, net of cash sold | 5.1 | ||||||||||||||||||
Repayment of principal and interest accrued | 8.2 | ||||||||||||||||||
Disposal group, disposed of by sale, not discontinued operations | Charleston Tennis LLC | Selling, general and administrative expenses | |||||||||||||||||||
Income Statement, Balance Sheet and Additional Disclosures by Disposal Groups, Including Discontinued Operations [Line Items] | |||||||||||||||||||
Net gain on disposition of assets | $ 3.3 | 10.4 | |||||||||||||||||
Disposal group, disposed of by sale, not discontinued operations | Charleston Tennis LLC | Nonoperating income (expense) | |||||||||||||||||||
Income Statement, Balance Sheet and Additional Disclosures by Disposal Groups, Including Discontinued Operations [Line Items] | |||||||||||||||||||
Gain on equity method investment | $ 4.1 |
Assets Held-for-Sale, Discont_5
Assets Held-for-Sale, Discontinued Operations, and Dispositions (Amounts Applicable to Discontinued Operations in Consolidated Statements of Earnings) (Details) - USD ($) $ / shares in Units, $ in Millions | 3 Months Ended | 12 Months Ended | |||||||||
Jun. 30, 2019 | Mar. 31, 2019 | Dec. 31, 2018 | Sep. 30, 2018 | Jun. 30, 2018 | Mar. 31, 2018 | Dec. 31, 2017 | Sep. 30, 2017 | Jun. 30, 2019 | Jun. 30, 2018 | Jun. 30, 2017 | |
Income Statement, Balance Sheet and Additional Disclosures by Disposal Groups, Including Discontinued Operations [Line Items] | |||||||||||
Loss from discontinued operations, net of income taxes | $ (9.4) | $ (4.7) | $ (69.5) | $ 0.8 | $ 0.3 | $ (14.9) | $ 0 | $ 0 | $ (82.8) | $ (14.6) | $ 0 |
Loss per share from discontinued operations | |||||||||||
Basic (in dollars per share) | $ (1.83) | $ (0.32) | $ 0 | ||||||||
Diluted (in dollars per share) | $ (1.82) | $ (0.32) | $ 0 | ||||||||
Discontinued operations, held-for-sale | |||||||||||
Income Statement, Balance Sheet and Additional Disclosures by Disposal Groups, Including Discontinued Operations [Line Items] | |||||||||||
Revenues | $ 423.4 | $ 253.8 | |||||||||
Costs and expenses | (408.5) | (242.7) | |||||||||
Impairment of goodwill | (8.5) | 0 | |||||||||
Interest expense | (21.4) | (11.9) | |||||||||
Gain (loss) on disposal | (12.3) | ||||||||||
Loss before income taxes | (12.9) | (13.1) | |||||||||
Income tax expense | (69.9) | (1.5) | |||||||||
Loss from discontinued operations, net of income taxes | $ (82.8) | $ (14.6) | |||||||||
Loss per share from discontinued operations | |||||||||||
Basic (in dollars per share) | $ (1.83) | $ (0.32) | |||||||||
Diluted (in dollars per share) | $ (1.82) | $ (0.32) |
Intangible Assets and Goodwil_2
Intangible Assets and Goodwill (Intangible Assets) (Details) - USD ($) $ in Millions | 1 Months Ended | 3 Months Ended | 12 Months Ended | ||||
May 31, 2018 | Jun. 30, 2019 | Jun. 30, 2018 | Dec. 31, 2017 | Jun. 30, 2019 | Jun. 30, 2018 | Jun. 30, 2017 | |
Finite and Indefinite-lived Intangible Assets by Major Class [Line Items] | |||||||
Intangible assets subject to amortization, gross amount | $ 798.6 | $ 805.7 | $ 798.6 | $ 805.7 | |||
Intangible assets subject to amortization, accumulated amortization | (392.5) | (248.8) | (392.5) | (248.8) | |||
Intangible assets subject to amortization, net amount | 406.1 | 556.9 | 406.1 | 556.9 | |||
Intangible assets not subject to amortization | 1,407.5 | 1,449.3 | 1,407.5 | 1,449.3 | |||
Intangible assets, net | 1,813.6 | 2,006.2 | 1,813.6 | 2,006.2 | |||
Amortization expense | 155.1 | 74.8 | $ 19.1 | ||||
Expected future amortization expense, 2020 | 140.8 | 140.8 | |||||
Expected future amortization expense, 2021 | 84.2 | 84.2 | |||||
Expected future amortization expense, 2022 | 41.4 | 41.4 | |||||
Expected future amortization expense, 2023 | 39.6 | 39.6 | |||||
Expected future amortization expense, 2024 | 32.5 | 32.5 | |||||
Trademarks | |||||||
Finite and Indefinite-lived Intangible Assets by Major Class [Line Items] | |||||||
Impairment of indefinite lived intangible assets | $ 41.8 | 41.8 | 2.9 | $ 19.8 | 22.7 | ||
National Media | Trademarks | |||||||
Finite and Indefinite-lived Intangible Assets by Major Class [Line Items] | |||||||
Intangible assets not subject to amortization | 724.5 | 766.3 | 724.5 | 766.3 | |||
National Media | Trademarks | Impairment of goodwill and other long-lived assets | |||||||
Finite and Indefinite-lived Intangible Assets by Major Class [Line Items] | |||||||
Impairment of indefinite lived intangible assets | $ 5.3 | ||||||
National Media | Internet domain names | |||||||
Finite and Indefinite-lived Intangible Assets by Major Class [Line Items] | |||||||
Intangible assets not subject to amortization | 7.8 | 7.8 | 7.8 | 7.8 | |||
National Media | Advertiser relationships | |||||||
Finite and Indefinite-lived Intangible Assets by Major Class [Line Items] | |||||||
Intangible assets subject to amortization, gross amount | 213.3 | 212.3 | 213.3 | 212.3 | |||
Intangible assets subject to amortization, accumulated amortization | (102) | (41.1) | (102) | (41.1) | |||
Intangible assets subject to amortization, net amount | 111.3 | 171.2 | 111.3 | 171.2 | |||
National Media | Publisher relationships | |||||||
Finite and Indefinite-lived Intangible Assets by Major Class [Line Items] | |||||||
Intangible assets subject to amortization, gross amount | 125 | 125 | 125 | 125 | |||
Intangible assets subject to amortization, accumulated amortization | (25.4) | (7.4) | (25.4) | (7.4) | |||
Intangible assets subject to amortization, net amount | 99.6 | 117.6 | 99.6 | 117.6 | |||
National Media | Partner relationships | |||||||
Finite and Indefinite-lived Intangible Assets by Major Class [Line Items] | |||||||
Intangible assets subject to amortization, gross amount | 98.2 | 95 | 98.2 | 95 | |||
Intangible assets subject to amortization, accumulated amortization | (22.7) | (6.6) | (22.7) | (6.6) | |||
Intangible assets subject to amortization, net amount | 75.5 | 88.4 | 75.5 | 88.4 | |||
National Media | Customer lists | |||||||
Finite and Indefinite-lived Intangible Assets by Major Class [Line Items] | |||||||
Intangible assets subject to amortization, gross amount | 67.5 | 67.5 | 67.5 | 67.5 | |||
Intangible assets subject to amortization, accumulated amortization | (46.3) | (14) | (46.3) | (14) | |||
Intangible assets subject to amortization, net amount | 21.2 | 53.5 | 21.2 | 53.5 | |||
National Media | Other | |||||||
Finite and Indefinite-lived Intangible Assets by Major Class [Line Items] | |||||||
Intangible assets subject to amortization, gross amount | 23.2 | 22 | 23.2 | 22 | |||
Intangible assets subject to amortization, accumulated amortization | (14.9) | (11.9) | (14.9) | (11.9) | |||
Intangible assets subject to amortization, net amount | 8.3 | 10.1 | 8.3 | 10.1 | |||
Local Media | FCC licenses | |||||||
Finite and Indefinite-lived Intangible Assets by Major Class [Line Items] | |||||||
Intangible assets not subject to amortization | 675.2 | 675.2 | 675.2 | 675.2 | |||
Local Media | Advertiser relationships | |||||||
Finite and Indefinite-lived Intangible Assets by Major Class [Line Items] | |||||||
Intangible assets subject to amortization, gross amount | 12.5 | 25 | 12.5 | 25 | |||
Intangible assets subject to amortization, accumulated amortization | (5.8) | (3.5) | (5.8) | (3.5) | |||
Intangible assets subject to amortization, net amount | 6.7 | 21.5 | 6.7 | 21.5 | |||
Local Media | Other | |||||||
Finite and Indefinite-lived Intangible Assets by Major Class [Line Items] | |||||||
Intangible assets subject to amortization, gross amount | 1.7 | 1.7 | 1.7 | 1.7 | |||
Intangible assets subject to amortization, accumulated amortization | (1.2) | (0.8) | (1.2) | (0.8) | |||
Intangible assets subject to amortization, net amount | 0.5 | 0.9 | 0.5 | 0.9 | |||
Local Media | Network | |||||||
Finite and Indefinite-lived Intangible Assets by Major Class [Line Items] | |||||||
Intangible assets subject to amortization, gross amount | 229.3 | 229.3 | 229.3 | 229.3 | |||
Intangible assets subject to amortization, accumulated amortization | (155.1) | (148.6) | (155.1) | (148.6) | |||
Intangible assets subject to amortization, net amount | 74.2 | 80.7 | 74.2 | 80.7 | |||
Local Media | Retransmission agreements | |||||||
Finite and Indefinite-lived Intangible Assets by Major Class [Line Items] | |||||||
Intangible assets subject to amortization, gross amount | 27.9 | 27.9 | 27.9 | 27.9 | |||
Intangible assets subject to amortization, accumulated amortization | (19.1) | (14.9) | (19.1) | (14.9) | |||
Intangible assets subject to amortization, net amount | $ 8.8 | $ 13 | $ 8.8 | $ 13 |
Intangible Assets and Goodwil_3
Intangible Assets and Goodwill (Goodwill) (Details) - USD ($) | May 31, 2017 | Jun. 30, 2019 | Jun. 30, 2018 | Jun. 30, 2019 | Jun. 30, 2018 | Jun. 30, 2017 |
Goodwill [Line Items] | ||||||
Goodwill | $ 1,979,400,000 | $ 1,915,800,000 | $ 1,024,400,000 | |||
Accumulated impairment losses | 0 | 0 | (116,900,000) | |||
Goodwill, net | $ 1,979,400,000 | $ 907,500,000 | 1,979,400,000 | 1,915,800,000 | 907,500,000 | |
Goodwill [Roll Forward] | ||||||
Goodwill at beginning of period | 1,915,800,000 | 907,500,000 | ||||
Acquisitions | 11,400,000 | 1,063,200,000 | ||||
Disposals | (54,900,000) | |||||
Acquisition adjustments | 52,200,000 | |||||
Goodwill at end of period | 1,979,400,000 | 1,915,800,000 | ||||
MXM | ||||||
Goodwill [Roll Forward] | ||||||
Disposals | $ 0 | |||||
Disposals | 116,900,000 | |||||
Goodwill decrease | 171,800,000 | |||||
National Media | ||||||
Goodwill [Line Items] | ||||||
Goodwill | 1,862,800,000 | 1,800,000,000 | 943,800,000 | |||
Accumulated impairment losses | 0 | 0 | (116,900,000) | |||
Goodwill, net | 1,800,000,000 | 826,900,000 | 1,862,800,000 | 1,800,000,000 | 826,900,000 | |
Goodwill [Roll Forward] | ||||||
Goodwill at beginning of period | 1,800,000,000 | 826,900,000 | ||||
Acquisitions | 10,600,000 | 1,028,000,000 | ||||
Disposals | (54,900,000) | |||||
Acquisition adjustments | 52,200,000 | |||||
Goodwill at end of period | 1,862,800,000 | 1,800,000,000 | ||||
Local Media | ||||||
Goodwill [Line Items] | ||||||
Goodwill | 116,600,000 | 115,800,000 | 80,600,000 | |||
Accumulated impairment losses | 0 | 0 | 0 | |||
Goodwill, net | 115,800,000 | 80,600,000 | $ 116,600,000 | $ 115,800,000 | $ 80,600,000 | |
Goodwill [Roll Forward] | ||||||
Goodwill at beginning of period | 115,800,000 | 80,600,000 | ||||
Acquisitions | 800,000 | 35,200,000 | ||||
Disposals | 0 | |||||
Acquisition adjustments | 0 | |||||
Goodwill at end of period | $ 116,600,000 | $ 115,800,000 |
Restructuring Accruals (Narrati
Restructuring Accruals (Narrative) (Details) $ in Millions | 3 Months Ended | 12 Months Ended | ||
Dec. 31, 2017USD ($) | Jun. 30, 2019USD ($)employee | Jun. 30, 2018USD ($)employee | Jun. 30, 2017USD ($)employee | |
Restructuring Cost and Reserve [Line Items] | ||||
Number of employees affected by the plan | employee | 215 | |||
Accruals | $ 87.4 | $ 106.3 | ||
Restructuring charges | $ 3.1 | $ 12.4 | ||
Reversal of excess accrual | 6 | 0.8 | ||
Restructuring liability | 66.5 | 107.6 | 8.7 | |
Restructuring liability, current portion | 48.4 | |||
Restructuring liability, noncurrent portion | 18.1 | |||
Restructuring, business acquisition and integration charges | ||||
Restructuring Cost and Reserve [Line Items] | ||||
Manuscript and art inventory write-down | 0.5 | 0.2 | ||
Employee Terminations | ||||
Restructuring Cost and Reserve [Line Items] | ||||
Accruals | 56.3 | 104.9 | ||
Restructuring charges | 104.9 | 11.9 | ||
Reversal of excess accrual | 4.4 | 0.8 | 1.8 | |
Restructuring liability | 43.7 | 101.3 | 8.7 | |
Other Exit Costs | ||||
Restructuring Cost and Reserve [Line Items] | ||||
Accruals | 31.1 | 1.4 | ||
Other restructuring costs | 0.3 | |||
Reversal of excess accrual | 1.6 | 0 | ||
Restructuring liability | $ 22.8 | $ 6.3 | $ 0 | |
Restructuring related to 2018 performance improvement plan | ||||
Restructuring Cost and Reserve [Line Items] | ||||
Number of employees affected by the plan | employee | 300 | 1,800 | ||
Restructuring related to 2018 performance improvement plan | National media | ||||
Restructuring Cost and Reserve [Line Items] | ||||
Number of employees affected by the plan | employee | 225 | |||
Restructuring related to 2018 performance improvement plan | Local media | ||||
Restructuring Cost and Reserve [Line Items] | ||||
Number of employees affected by the plan | employee | 25 |
Restructuring Accruals (Severan
Restructuring Accruals (Severance and Related Benefit Costs by Segment) (Details) - USD ($) $ in Millions | Jun. 30, 2019 | Jun. 30, 2018 |
Restructuring Cost and Reserve [Line Items] | ||
Amount Accrued in the Period | $ 56.3 | $ 104.9 |
Total Amount Expected to be Incurred | 56.7 | |
Operating segments | National media | ||
Restructuring Cost and Reserve [Line Items] | ||
Amount Accrued in the Period | 39.2 | 51.5 |
Total Amount Expected to be Incurred | 39.6 | |
Operating segments | Local media | ||
Restructuring Cost and Reserve [Line Items] | ||
Amount Accrued in the Period | 2 | 0.9 |
Total Amount Expected to be Incurred | 2 | |
Unallocated corporate | ||
Restructuring Cost and Reserve [Line Items] | ||
Amount Accrued in the Period | 15.1 | $ 52.5 |
Total Amount Expected to be Incurred | $ 15.1 |
Restructuring Accruals (Schedul
Restructuring Accruals (Schedule of Changes in the Restructuring Accrual) (Details) - USD ($) $ in Millions | 12 Months Ended | ||
Jun. 30, 2019 | Jun. 30, 2018 | Jun. 30, 2017 | |
Restructuring Reserve [Roll Forward] | |||
Balance at beginning of year | $ 107.6 | $ 8.7 | |
Accrual on Time’s opening balance sheet | 0 | 45.1 | |
Accruals | 87.4 | 106.3 | |
Cash payments | (122.5) | (51.6) | |
Other accruals | 0 | (0.1) | |
Reversal of excess accrual | (6) | (0.8) | |
Balance at end of year | 66.5 | 107.6 | $ 8.7 |
Employee Terminations | |||
Restructuring Reserve [Roll Forward] | |||
Balance at beginning of year | 101.3 | 8.7 | |
Accrual on Time’s opening balance sheet | 0 | 38.5 | |
Accruals | 56.3 | 104.9 | |
Cash payments | (109.5) | (49.9) | |
Other accruals | 0 | (0.1) | |
Reversal of excess accrual | (4.4) | (0.8) | (1.8) |
Balance at end of year | 43.7 | 101.3 | 8.7 |
Other Exit Costs | |||
Restructuring Reserve [Roll Forward] | |||
Balance at beginning of year | 6.3 | 0 | |
Accrual on Time’s opening balance sheet | 0 | 6.6 | |
Accruals | 31.1 | 1.4 | |
Cash payments | (13) | (1.7) | |
Other accruals | 0 | 0 | |
Reversal of excess accrual | (1.6) | 0 | |
Balance at end of year | $ 22.8 | $ 6.3 | $ 0 |
Long-term Debt (Schedule of Lon
Long-term Debt (Schedule of Long-term Debt) (Details) - USD ($) | Jun. 30, 2019 | Jun. 30, 2018 | Jan. 31, 2018 |
Debt Instrument [Line Items] | |||
Principal Balance | $ 2,370,400,000 | $ 3,195,500,000 | |
Unamortized Discount and Debt Issuance Costs | (37,100,000) | (59,900,000) | |
Carrying Value | 2,333,300,000 | 3,135,600,000 | |
Current portion of long-term debt | 0 | (18,000,000) | |
Current portion of long-term debt, unamortized discount and debt issuance costs | 0 | 300,000 | |
Current portion of long-term debt | 0 | (17,700,000) | |
Long-term debt, principal balance | 2,370,400,000 | 3,177,500,000 | |
Long-term debt, unamortized discount and debt issuance costs | (37,100,000) | (59,600,000) | |
Long-term debt, carrying value | $ 2,333,300,000 | $ 3,117,900,000 | |
Senior Unsecured Notes | 6.875% senior notes, due 2/1/2026 | |||
Debt Instrument [Line Items] | |||
Stated interest rate | 6.875% | 6.875% | 6.875% |
Principal Balance | $ 1,272,900,000 | $ 1,400,000,000 | |
Unamortized Discount and Debt Issuance Costs | (21,500,000) | (26,500,000) | |
Carrying Value | 1,251,400,000 | 1,373,500,000 | |
Variable-rate credit facility | Variable-rate credit facility | Senior credit facility term loan, due 1/31/2025 | |||
Debt Instrument [Line Items] | |||
Principal Balance | 1,062,500,000 | 1,795,500,000 | |
Unamortized Discount and Debt Issuance Costs | (15,600,000) | (33,400,000) | |
Carrying Value | 1,046,900,000 | 1,762,100,000 | |
Variable-rate credit facility | Variable-rate credit facility | Revolving credit facility of $350 million, due 1/31/2023 | |||
Debt Instrument [Line Items] | |||
Maximum borrowing capacity | 350,000,000 | ||
Principal Balance | 35,000,000 | 0 | |
Unamortized Discount and Debt Issuance Costs | 0 | 0 | |
Carrying Value | $ 35,000,000 | $ 0 |
Long-term Debt (Narrative) (Det
Long-term Debt (Narrative) (Details) | Oct. 26, 2018 | Jan. 31, 2018USD ($) | Dec. 31, 2018USD ($) | Sep. 30, 2018USD ($) | Jun. 30, 2019USD ($) | Jun. 30, 2018USD ($) | Jun. 30, 2017USD ($) |
Debt Instrument [Line Items] | |||||||
Loss on extinguishment of debt | $ 9,800,000 | $ 18,400,000 | $ 0 | $ 0 | |||
Long-term debt | 2,333,300,000 | 3,135,600,000 | |||||
Long-term debt, maturities, repayments of principal in year four | 35,000,000 | ||||||
Principal balance | 2,370,400,000 | 3,195,500,000 | |||||
Debt issuance costs, net | 14,700,000 | ||||||
Debt instrument, unamortized discount | 56,000,000 | ||||||
Interest expense related to long-term debt | 196,100,000 | 92,900,000 | $ 18,800,000 | ||||
Interest Expense | |||||||
Debt Instrument [Line Items] | |||||||
Loss on extinguishment of debt | 10,900,000 | ||||||
Loss from Discontinued Operations | |||||||
Debt Instrument [Line Items] | |||||||
Loss on extinguishment of debt | 7,500,000 | ||||||
Senior Secured Term Loan Due 2025 | Secured Debt | |||||||
Debt Instrument [Line Items] | |||||||
Loss on extinguishment of debt | $ 2,100,000 | ||||||
Debt instrument, term | 5 years | ||||||
Debt instrument, amortization rate | 1.00% | ||||||
Repayments of debt | $ 200,000,000 | $ 733,000,000 | |||||
Debt instrument, leverage ratio | 2.25 | ||||||
Debt evaluation repricing threshold | 10.00% | ||||||
Senior Secured Term Loan Due 2025 | Secured Debt | LIBOR | |||||||
Debt Instrument [Line Items] | |||||||
Debt instrument, basis spread on variable rate | 2.75% | ||||||
Senior Secured Term Loan Due 2025 | Secured Debt | LIBOR | Minimum | |||||||
Debt Instrument [Line Items] | |||||||
Debt instrument, basis spread on variable rate | 2.50% | ||||||
Senior Secured Term Loan Due 2025 | Secured Debt | LIBOR | Maximum | |||||||
Debt Instrument [Line Items] | |||||||
Debt instrument, basis spread on variable rate | 3.00% | 5.15% | |||||
2026 Senior Notes | Senior Notes | |||||||
Debt Instrument [Line Items] | |||||||
Loss on extinguishment of debt | $ 18,400,000 | ||||||
Long-term debt | $ 1,251,400,000 | $ 1,373,500,000 | |||||
Debt instrument, face amount | $ 1,400,000,000 | ||||||
Stated interest rate | 6.875% | 6.875% | 6.875% | ||||
Principal balance | $ 1,272,900,000 | $ 1,400,000,000 | |||||
Extinguishment of debt, amount | 127,100,000 | ||||||
Extinguishment of debt, premium incurred | 1,800,000 | ||||||
Time, Inc. | |||||||
Debt Instrument [Line Items] | |||||||
Loss on extinguishment of debt | $ 2,200,000 | ||||||
Gain from derivative agreement settlement | 1,600,000 | ||||||
Time, Inc. | Variable Rate Credit Facilities and Senior Notes | |||||||
Debt Instrument [Line Items] | |||||||
Maximum borrowing capacity | 3,600,000,000 | ||||||
Variable-rate credit facility | Senior Secured Term Loan Due 2025 | Secured Debt | |||||||
Debt Instrument [Line Items] | |||||||
Long-term debt | 1,800,000,000 | ||||||
Variable-rate credit facility | Senior credit facility term loan, due 1/31/2025 | Line of Credit | |||||||
Debt Instrument [Line Items] | |||||||
Long-term debt | 1,046,900,000 | 1,762,100,000 | |||||
Principal balance | 1,062,500,000 | 1,795,500,000 | |||||
Revolving Credit Facility | Five-Year Senior Secured Revolving Credit Facility | Line of Credit | |||||||
Debt Instrument [Line Items] | |||||||
Maximum borrowing capacity | $ 350,000,000 | ||||||
Line of credit issued | 35,000,000 | ||||||
Credit facility remaining borrowing capacity | 311,400,000 | ||||||
Revolving Credit Facility | Five-Year Senior Secured Revolving Credit Facility | Line of Credit | Minimum | |||||||
Debt Instrument [Line Items] | |||||||
Commitment fee percentage | 0.375% | ||||||
Revolving Credit Facility | Five-Year Senior Secured Revolving Credit Facility | Line of Credit | Maximum | |||||||
Debt Instrument [Line Items] | |||||||
Commitment fee percentage | 0.50% | ||||||
Letter of Credit | Five-Year Senior Secured Revolving Credit Facility | Line of Credit | |||||||
Debt Instrument [Line Items] | |||||||
Maximum borrowing capacity | $ 175,000,000 | ||||||
Line of credit issued | $ 3,600,000 | ||||||
Bridge Loan | Five-Year Senior Secured Revolving Credit Facility | Line of Credit | |||||||
Debt Instrument [Line Items] | |||||||
Maximum borrowing capacity | $ 35,000,000 | ||||||
Line of credit facility, commitment fee amount | $ 17,500,000 |
Income Taxes (Narrative) (Detai
Income Taxes (Narrative) (Details) - USD ($) $ in Millions | May 23, 2014 | Sep. 30, 2018 | Jun. 30, 2019 | Jun. 30, 2018 | Jun. 30, 2017 |
Income Tax Disclosure [Abstract] | |||||
U.S. statutory tax rate | 21.00% | 28.10% | 35.00% | ||
Tax cuts and jobs act of 2017, change in tax rate, provisional income tax expense (benefit) | $ 133 | ||||
Excess tax benefit | $ 2.2 | ||||
Effective income tax rate | 8.20% | 1282.40% | 34.90% | ||
Significant Change in Unrecognized Tax Benefits is Reasonably Possible [Line Items] | |||||
Capital loss carryforwards | $ 23.5 | ||||
Increase in valuation allowance | $ 0.6 | ||||
Unrecognized tax benefits that, if recognized, would impact effective tax rate | 44.5 | $ 49.7 | |||
Unrecognized tax benefits, accrued interest and penalties | 12 | 8.4 | |||
Time, Inc. | |||||
Significant Change in Unrecognized Tax Benefits is Reasonably Possible [Line Items] | |||||
Tax liability recorded in connection with the TMA | 27.5 | $ 26 | |||
Federal | |||||
Significant Change in Unrecognized Tax Benefits is Reasonably Possible [Line Items] | |||||
Net operating loss carryforwards | 56.1 | ||||
State | |||||
Significant Change in Unrecognized Tax Benefits is Reasonably Possible [Line Items] | |||||
Net operating loss carryforwards | 161.6 | ||||
Minimum | |||||
Significant Change in Unrecognized Tax Benefits is Reasonably Possible [Line Items] | |||||
Estimated decrease in unrecognized tax benefits | $ 15.3 | ||||
Maximum | |||||
Significant Change in Unrecognized Tax Benefits is Reasonably Possible [Line Items] | |||||
Estimated decrease in unrecognized tax benefits | $ 4.4 | ||||
Time, Inc. | |||||
Significant Change in Unrecognized Tax Benefits is Reasonably Possible [Line Items] | |||||
Distribution ratio | 12.50% |
Income Taxes (Schedule of Incom
Income Taxes (Schedule of Income Tax Expense (Benefit)) (Details) - USD ($) $ in Millions | 12 Months Ended | ||
Jun. 30, 2019 | Jun. 30, 2018 | Jun. 30, 2017 | |
Current | |||
Federal | $ (29.8) | $ 1.8 | $ 62.2 |
State | (2.8) | 1.2 | 0.4 |
Foreign | 0.6 | 0.2 | 0 |
Current | (32) | 3.2 | 62.6 |
Deferred | |||
Federal | 42 | (129.9) | 33 |
State | 1.6 | 3.2 | 5.8 |
Foreign | (0.1) | (0.1) | 0 |
Deferred | 43.5 | (126.8) | 38.8 |
Income tax expense (benefit) | $ 11.5 | $ (123.6) | $ 101.4 |
Income Taxes (Schedule of Effec
Income Taxes (Schedule of Effective Income Tax Rate Reconciliation) (Details) | 12 Months Ended | ||
Jun. 30, 2019 | Jun. 30, 2018 | Jun. 30, 2017 | |
Income Tax Disclosure [Abstract] | |||
U.S. statutory tax rate | 21.00% | 28.10% | 35.00% |
State income taxes, less federal income tax benefits | (0.70%) | 27.80% | 3.00% |
Foreign operations | (13.30%) | (74.20%) | 0.00% |
Rate change | (0.10%) | 1312.50% | 0.00% |
Settlements - audits / tax litigation | (2.50%) | 10.40% | (2.30%) |
Sale of domestic subsidiary | 0.00% | 67.30% | 0.00% |
Effective Income Tax Rate Reconciliation, Nondeductible Expense, Compensation, Percent | 3.70% | (176.40%) | 0.30% |
Other | 0.10% | 86.90% | (1.10%) |
Effective income tax rate | 8.20% | 1282.40% | 34.90% |
Income Taxes (Schedule of Defer
Income Taxes (Schedule of Deferred Tax Assets and Liabilities) (Details) - USD ($) $ in Millions | Jun. 30, 2019 | Jun. 30, 2018 |
Deferred tax assets | ||
Accounts receivable allowances and return reserves | $ 19.3 | $ 6.8 |
Compensation and benefits | 29.6 | 44 |
Indirect benefit of uncertain state and foreign tax positions | 6.8 | 6.4 |
Investment in foreign subsidiary | 0 | 62.1 |
Investment in partnerships | 15.4 | 8.4 |
Tax loss carryforwards | 57.7 | 127.8 |
Accelerated gains from dispositions | 18.2 | 0 |
All other assets | 16.9 | 8.8 |
Total deferred tax assets | 163.9 | 264.3 |
Valuation allowance | (21.7) | (21.1) |
Net deferred tax assets | 142.2 | 243.2 |
Deferred tax liabilities | ||
Subscription acquisition costs | 66.9 | 43.4 |
Accumulated depreciation and amortization | 559.2 | 612 |
Deferred gains from dispositions | 15.8 | 15.7 |
All other liabilities | 4.9 | 4.6 |
Total deferred tax liabilities | 646.8 | 675.7 |
Net deferred tax liability | $ 504.6 | $ 432.5 |
Income Taxes (Schedule of Unrec
Income Taxes (Schedule of Unrecognized Tax Benefits) (Details) - USD ($) $ in Millions | 12 Months Ended | |
Jun. 30, 2019 | Jun. 30, 2018 | |
Reconciliation of gross unrecognized tax benefits [Roll Forward] | ||
Balance at beginning of year | $ 60.2 | $ 29.5 |
Increase in positions acquired in business combination | 0 | 31.9 |
Increases in tax positions for prior years | 0.2 | 0.4 |
Decreases in tax positions for prior years | (0.7) | 0 |
Increases in tax positions for current year | 0.6 | 5.6 |
Settlements | (0.1) | (4.2) |
Lapse in statute of limitations | (6.5) | (3) |
Balance at end of year | $ 53.7 | $ 60.2 |
Commitments and Contingent Li_3
Commitments and Contingent Liabilities (Schedule of Future Commitments Expected to be Paid) (Details) $ in Millions | Jun. 30, 2019USD ($) |
Operating leases | |
2020 | $ 61.3 |
2021 | 57.5 |
2022 | 54.9 |
2023 | 52.4 |
2024 | 52.8 |
Thereafter | 397.7 |
Total | 676.6 |
Total commitments | |
2020 | 79 |
2021 | 64.1 |
2022 | 57.9 |
2023 | 54.1 |
2024 | 53.1 |
Thereafter | 397.7 |
Total | 705.9 |
Broadcast rights payable | |
Recorded commitments | |
2020 | 6.5 |
2021 | 3.7 |
2022 | 2.8 |
2023 | 1.7 |
2024 | 0.3 |
Thereafter | 0 |
Total | 15 |
Unavailable rights | |
2020 | 11.2 |
2021 | 2.9 |
2022 | 0.2 |
2023 | 0 |
2024 | 0 |
Thereafter | 0 |
Total | $ 14.3 |
Commitments and Contingent Li_4
Commitments and Contingent Liabilities (Narrative) (Details) - USD ($) $ in Millions | 12 Months Ended | ||
Jun. 30, 2019 | Jun. 30, 2018 | Jun. 30, 2017 | |
Commitments and Contingencies Disclosure [Abstract] | |||
Future minimum sublease income, 2020 | $ 7.7 | ||
Future minimum sublease income, 2021 | 8.7 | ||
Future minimum sublease income, 2022 | 9.3 | ||
Future minimum sublease income, 2023 | 9.1 | ||
Future minimum sublease income, 2024 | 9.5 | ||
Future minimum sublease income, thereafter | 24.2 | ||
Rent expense for operating leases | 67.6 | $ 45.9 | $ 20.1 |
Long-term Purchase Commitment [Line Items] | |||
Unavailable broadcast rights payable, fair value | 13.6 | ||
Broadcast rights payable | |||
Long-term Purchase Commitment [Line Items] | |||
Total unavailable rights | $ 14.3 |
Commitments and Contingent Li_5
Commitments and Contingent Liabilities (Lease Guarantees Narrative) (Details) - Performance guarantee - Discontinued operations, disposed of by sale - USD ($) $ in Millions | Jun. 30, 2019 | Jun. 30, 2018 | Mar. 31, 2018 |
Income Statement, Balance Sheet and Additional Disclosures by Disposal Groups, Including Discontinued Operations [Line Items] | |||
Guarantee obligations, current carrying amount | $ 8 | $ 8.7 | |
Time Inc. (UK) Ltd | |||
Income Statement, Balance Sheet and Additional Disclosures by Disposal Groups, Including Discontinued Operations [Line Items] | |||
Guarantee obligations, current carrying amount | 8 | $ 9.2 | |
Maximum lease guarantee obligation | 66.9 | ||
Sunset and INVNT Lease Guarantees | |||
Income Statement, Balance Sheet and Additional Disclosures by Disposal Groups, Including Discontinued Operations [Line Items] | |||
Guarantee obligations, current carrying amount | 2.6 | ||
Maximum lease guarantee obligation | $ 15.3 |
Commitments and Contingent Li_6
Commitments and Contingent Liabilities (Legal Proceedings Narrative) (Details) - CAD ($) $ in Millions | Nov. 30, 2015 | Jun. 19, 2015 | Sep. 13, 2013 | Oct. 26, 2010 |
Time, Inc. | TIR vs. Canadian Prime Minister of National Revenue | Pending litigation | ||||
Loss Contingencies [Line Items] | ||||
Loss contingency, estimate of possible loss | $ 91 | $ 89.8 | $ 26.9 | $ 52 |
Fair Value Measurements (Schedu
Fair Value Measurements (Schedule of Carrying Value and Estimated Fair Value of Financial Instruments) (Details) - USD ($) $ in Millions | Jun. 30, 2019 | Jun. 30, 2018 |
Carrying Value | ||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ||
Broadcast rights payable | $ 15 | $ 29.7 |
Long-term debt | 2,333.3 | 3,135.6 |
Fair Value | ||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ||
Broadcast rights payable | 13.6 | 27.4 |
Long-term debt | $ 2,452.9 | $ 3,179.8 |
Fair Value Measurements (Sche_2
Fair Value Measurements (Schedule of Assets and Liabilities Measured at Fair Value on a Recurring Basis) (Details) - Measured at fair value on recurring basis - USD ($) $ in Millions | Jun. 30, 2019 | Jun. 30, 2018 |
Accrued expenses and other liabilities | Level 3 | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Contingent consideration | $ 0 | $ 24.6 |
Accrued expenses and other liabilities | Level 2 | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Deferred compensation plans | 4.7 | 8.4 |
Other noncurrent liabilities | Level 3 | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Contingent consideration | 0.8 | 0.8 |
Other noncurrent liabilities | Level 2 | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Deferred compensation plans | $ 16.2 | $ 21 |
Fair Value Measurements (Sche_3
Fair Value Measurements (Schedule of Changes in Fair Value of Level 3 Inputs) (Details) - USD ($) $ in Millions | 12 Months Ended | ||
Jun. 30, 2019 | Jun. 30, 2018 | Jun. 30, 2017 | |
Fair Value Liabilities [Roll Forward] | |||
Liabilities associated with assets held-for-sale | $ 252.1 | $ 200 | |
Level 3 | Measured at fair value on recurring basis | Investment in Next Issue Media | |||
Fair Value Assets [Roll Forward] | |||
Balance at beginning of year | 0 | 11 | |
Additions due to investment and acquisition | 0 | 3.3 | |
Equity method investment losses | 0 | (3.6) | |
Impairment | 0 | (9.3) | |
Sale | 0 | (1.4) | |
Balance at end of year | 0 | 0 | |
Level 3 | Measured at fair value on recurring basis | Contingent consideration | |||
Fair Value Liabilities [Roll Forward] | |||
Balance at beginning of year | 0.8 | 25.4 | $ 34.2 |
Accrual on Time’s opening balance sheet | 0 | 1.1 | |
Payments | (19.3) | (5.1) | |
Fair value adjustment | (5.3) | (4.8) | |
Balance at end of year | 0.8 | 25.4 | 34.2 |
Liabilities associated with assets held-for-sale | 0.5 | ||
Level 3 | Measured at fair value on recurring basis | 2019 Lease Guarantee | |||
Fair Value Liabilities [Roll Forward] | |||
Balance at beginning of year | 0 | 0 | |
Accrual on Time’s opening balance sheet | 0 | ||
Issuance of new guarantees | 0 | ||
Fair value adjustment | 0 | ||
Foreign currency exchange impact | 0 | ||
Balance at end of year | 0 | 0 | |
Level 3 | Measured at fair value on recurring basis | 2018 Lease Guarantee | |||
Fair Value Liabilities [Roll Forward] | |||
Balance at beginning of year | 11.9 | 0 | |
Accrual on Time’s opening balance sheet | 3.6 | ||
Issuance of new guarantees | 9.2 | ||
Fair value adjustment | (0.4) | ||
Foreign currency exchange impact | (0.5) | ||
Balance at end of year | 11.9 | $ 0 | |
Level 3 | Measured at fair value on nonrecurring basis | Trademarks | |||
Fair Value Assets [Roll Forward] | |||
Balance at beginning of year | 33 | ||
Balance at end of year | 27.2 | 33 | |
Level 3 | Measured at fair value on nonrecurring basis | 2019 Trademarks | |||
Fair Value Assets [Roll Forward] | |||
Balance at beginning of year | 69 | ||
Impairment | (41.8) | ||
Balance at end of year | 27.2 | 69 | |
Level 3 | Measured at fair value on nonrecurring basis | 2018 Trademarks | |||
Fair Value Assets [Roll Forward] | |||
Balance at beginning of year | $ 33 | 55.7 | |
Impairment | (22.7) | ||
Balance at end of year | $ 33 |
Revenue Recognition (Disaggrega
Revenue Recognition (Disaggregation of Revenue) (Details) - USD ($) $ in Millions | 3 Months Ended | 12 Months Ended | |||||||||
Jun. 30, 2019 | Mar. 31, 2019 | Dec. 31, 2018 | Sep. 30, 2018 | Jun. 30, 2018 | Mar. 31, 2018 | Dec. 31, 2017 | Sep. 30, 2017 | Jun. 30, 2019 | Jun. 30, 2018 | Jun. 30, 2017 | |
Disaggregation of Revenue [Line Items] | |||||||||||
Total revenues | $ 785.6 | $ 750.1 | $ 878.4 | $ 774.4 | $ 798.7 | $ 655 | $ 417.7 | $ 392.8 | $ 3,188.5 | $ 2,264.2 | $ 1,713.3 |
Advertising related | |||||||||||
Disaggregation of Revenue [Line Items] | |||||||||||
Total revenues | 1,686.6 | 1,190.7 | 934.1 | ||||||||
Disaggregation of Revenue [Line Items] | |||||||||||
Total revenues | 690.1 | ||||||||||
Non-political spot | |||||||||||
Disaggregation of Revenue [Line Items] | |||||||||||
Total revenues | 323.3 | ||||||||||
Political spot | |||||||||||
Disaggregation of Revenue [Line Items] | |||||||||||
Total revenues | 102.9 | ||||||||||
Digital | |||||||||||
Disaggregation of Revenue [Line Items] | |||||||||||
Total revenues | 410.7 | ||||||||||
Third party sales | |||||||||||
Disaggregation of Revenue [Line Items] | |||||||||||
Total revenues | 159.6 | ||||||||||
Consumer related | |||||||||||
Disaggregation of Revenue [Line Items] | |||||||||||
Total revenues | 358.3 | 316.1 | 1,393.6 | 921.3 | 613.5 | ||||||
Subscription | |||||||||||
Disaggregation of Revenue [Line Items] | |||||||||||
Total revenues | 693.7 | ||||||||||
Retransmission | |||||||||||
Disaggregation of Revenue [Line Items] | |||||||||||
Total revenues | 316.5 | ||||||||||
Newsstand | |||||||||||
Disaggregation of Revenue [Line Items] | |||||||||||
Total revenues | 165.5 | ||||||||||
Affinity marketing | |||||||||||
Disaggregation of Revenue [Line Items] | |||||||||||
Total revenues | 83.6 | ||||||||||
Licensing | |||||||||||
Disaggregation of Revenue [Line Items] | |||||||||||
Total revenues | 94.4 | ||||||||||
Digital consumer driven | |||||||||||
Disaggregation of Revenue [Line Items] | |||||||||||
Total revenues | 39.9 | ||||||||||
Other | |||||||||||
Disaggregation of Revenue [Line Items] | |||||||||||
Total revenues | 108.3 | 152.2 | 165.7 | ||||||||
Projects based | |||||||||||
Disaggregation of Revenue [Line Items] | |||||||||||
Total revenues | 50.5 | ||||||||||
Other | |||||||||||
Disaggregation of Revenue [Line Items] | |||||||||||
Total revenues | 57.8 | ||||||||||
Operating segments | |||||||||||
Disaggregation of Revenue [Line Items] | |||||||||||
Total revenues | 3,190.4 | 2,265.7 | 1,713.3 | ||||||||
Operating segments | National Media | |||||||||||
Disaggregation of Revenue [Line Items] | |||||||||||
Total revenues | 587.5 | 562.3 | 616.2 | 560.6 | 600.6 | 485.6 | 247.4 | 239 | 2,326.6 | 1,572.6 | 1,083.2 |
Operating segments | National Media | Advertising related | |||||||||||
Disaggregation of Revenue [Line Items] | |||||||||||
Total revenues | 1,150.3 | ||||||||||
Operating segments | National Media | Print | |||||||||||
Disaggregation of Revenue [Line Items] | |||||||||||
Total revenues | 690.1 | ||||||||||
Operating segments | National Media | Non-political spot | |||||||||||
Disaggregation of Revenue [Line Items] | |||||||||||
Total revenues | 0 | ||||||||||
Operating segments | National Media | Political spot | |||||||||||
Disaggregation of Revenue [Line Items] | |||||||||||
Total revenues | 0 | ||||||||||
Operating segments | National Media | Digital | |||||||||||
Disaggregation of Revenue [Line Items] | |||||||||||
Total revenues | 394.9 | ||||||||||
Operating segments | National Media | Third party sales | |||||||||||
Disaggregation of Revenue [Line Items] | |||||||||||
Total revenues | 65.3 | ||||||||||
Operating segments | National Media | Consumer related | |||||||||||
Disaggregation of Revenue [Line Items] | |||||||||||
Total revenues | 1,077.1 | ||||||||||
Operating segments | National Media | Subscription | |||||||||||
Disaggregation of Revenue [Line Items] | |||||||||||
Total revenues | 693.7 | ||||||||||
Operating segments | National Media | Retransmission | |||||||||||
Disaggregation of Revenue [Line Items] | |||||||||||
Total revenues | 0 | ||||||||||
Operating segments | National Media | Newsstand | |||||||||||
Disaggregation of Revenue [Line Items] | |||||||||||
Total revenues | 165.5 | ||||||||||
Operating segments | National Media | Affinity marketing | |||||||||||
Disaggregation of Revenue [Line Items] | |||||||||||
Total revenues | 83.6 | ||||||||||
Operating segments | National Media | Licensing | |||||||||||
Disaggregation of Revenue [Line Items] | |||||||||||
Total revenues | 94.4 | ||||||||||
Operating segments | National Media | Digital consumer driven | |||||||||||
Disaggregation of Revenue [Line Items] | |||||||||||
Total revenues | 39.9 | ||||||||||
Operating segments | National Media | Other | |||||||||||
Disaggregation of Revenue [Line Items] | |||||||||||
Total revenues | 99.2 | ||||||||||
Operating segments | National Media | Projects based | |||||||||||
Disaggregation of Revenue [Line Items] | |||||||||||
Total revenues | 50.5 | ||||||||||
Operating segments | National Media | Other | |||||||||||
Disaggregation of Revenue [Line Items] | |||||||||||
Total revenues | 48.7 | ||||||||||
Operating segments | Local Media | |||||||||||
Disaggregation of Revenue [Line Items] | |||||||||||
Total revenues | 198.6 | 188.4 | 262.4 | 214.4 | 198.9 | 170.1 | 170.3 | 153.8 | 863.8 | 693.1 | 630.1 |
Operating segments | Local Media | Advertising related | |||||||||||
Disaggregation of Revenue [Line Items] | |||||||||||
Total revenues | 538.2 | ||||||||||
Operating segments | Local Media | Print | |||||||||||
Disaggregation of Revenue [Line Items] | |||||||||||
Total revenues | 0 | ||||||||||
Operating segments | Local Media | Non-political spot | |||||||||||
Disaggregation of Revenue [Line Items] | |||||||||||
Total revenues | 323.3 | ||||||||||
Operating segments | Local Media | Political spot | |||||||||||
Disaggregation of Revenue [Line Items] | |||||||||||
Total revenues | 102.9 | ||||||||||
Operating segments | Local Media | Digital | |||||||||||
Disaggregation of Revenue [Line Items] | |||||||||||
Total revenues | 15.8 | ||||||||||
Operating segments | Local Media | Third party sales | |||||||||||
Disaggregation of Revenue [Line Items] | |||||||||||
Total revenues | 96.2 | ||||||||||
Operating segments | Local Media | Consumer related | |||||||||||
Disaggregation of Revenue [Line Items] | |||||||||||
Total revenues | 316.5 | ||||||||||
Operating segments | Local Media | Subscription | |||||||||||
Disaggregation of Revenue [Line Items] | |||||||||||
Total revenues | 0 | ||||||||||
Operating segments | Local Media | Retransmission | |||||||||||
Disaggregation of Revenue [Line Items] | |||||||||||
Total revenues | 316.5 | ||||||||||
Operating segments | Local Media | Newsstand | |||||||||||
Disaggregation of Revenue [Line Items] | |||||||||||
Total revenues | 0 | ||||||||||
Operating segments | Local Media | Affinity marketing | |||||||||||
Disaggregation of Revenue [Line Items] | |||||||||||
Total revenues | 0 | ||||||||||
Operating segments | Local Media | Licensing | |||||||||||
Disaggregation of Revenue [Line Items] | |||||||||||
Total revenues | 0 | ||||||||||
Operating segments | Local Media | Digital consumer driven | |||||||||||
Disaggregation of Revenue [Line Items] | |||||||||||
Total revenues | 0 | ||||||||||
Operating segments | Local Media | Other | |||||||||||
Disaggregation of Revenue [Line Items] | |||||||||||
Total revenues | 9.1 | ||||||||||
Operating segments | Local Media | Projects based | |||||||||||
Disaggregation of Revenue [Line Items] | |||||||||||
Total revenues | 0 | ||||||||||
Operating segments | Local Media | Other | |||||||||||
Disaggregation of Revenue [Line Items] | |||||||||||
Total revenues | 9.1 | ||||||||||
Intersegment Elimination | |||||||||||
Disaggregation of Revenue [Line Items] | |||||||||||
Total revenues | $ (0.5) | $ (0.6) | $ (0.2) | $ (0.6) | $ (0.8) | $ (0.7) | $ 0 | $ 0 | (1.9) | $ (1.5) | $ 0 |
Intersegment Elimination | Advertising related | |||||||||||
Disaggregation of Revenue [Line Items] | |||||||||||
Total revenues | (1.9) | ||||||||||
Intersegment Elimination | Print | |||||||||||
Disaggregation of Revenue [Line Items] | |||||||||||
Total revenues | 0 | ||||||||||
Intersegment Elimination | Non-political spot | |||||||||||
Disaggregation of Revenue [Line Items] | |||||||||||
Total revenues | 0 | ||||||||||
Intersegment Elimination | Political spot | |||||||||||
Disaggregation of Revenue [Line Items] | |||||||||||
Total revenues | 0 | ||||||||||
Intersegment Elimination | Digital | |||||||||||
Disaggregation of Revenue [Line Items] | |||||||||||
Total revenues | 0 | ||||||||||
Intersegment Elimination | Third party sales | |||||||||||
Disaggregation of Revenue [Line Items] | |||||||||||
Total revenues | (1.9) | ||||||||||
Intersegment Elimination | Consumer related | |||||||||||
Disaggregation of Revenue [Line Items] | |||||||||||
Total revenues | 0 | ||||||||||
Intersegment Elimination | Subscription | |||||||||||
Disaggregation of Revenue [Line Items] | |||||||||||
Total revenues | 0 | ||||||||||
Intersegment Elimination | Retransmission | |||||||||||
Disaggregation of Revenue [Line Items] | |||||||||||
Total revenues | 0 | ||||||||||
Intersegment Elimination | Newsstand | |||||||||||
Disaggregation of Revenue [Line Items] | |||||||||||
Total revenues | 0 | ||||||||||
Intersegment Elimination | Affinity marketing | |||||||||||
Disaggregation of Revenue [Line Items] | |||||||||||
Total revenues | 0 | ||||||||||
Intersegment Elimination | Licensing | |||||||||||
Disaggregation of Revenue [Line Items] | |||||||||||
Total revenues | 0 | ||||||||||
Intersegment Elimination | Digital consumer driven | |||||||||||
Disaggregation of Revenue [Line Items] | |||||||||||
Total revenues | 0 | ||||||||||
Intersegment Elimination | Other | |||||||||||
Disaggregation of Revenue [Line Items] | |||||||||||
Total revenues | 0 | ||||||||||
Intersegment Elimination | Projects based | |||||||||||
Disaggregation of Revenue [Line Items] | |||||||||||
Total revenues | 0 | ||||||||||
Intersegment Elimination | Other | |||||||||||
Disaggregation of Revenue [Line Items] | |||||||||||
Total revenues | $ 0 |
Revenue Recognition (Narrative)
Revenue Recognition (Narrative) (Details) - USD ($) $ in Millions | 12 Months Ended | |||
Jun. 30, 2019 | Sep. 30, 2018 | Jul. 01, 2018 | Jun. 30, 2018 | |
Disaggregation of Revenue [Line Items] | ||||
Write-off of current portion of broadcast rights | $ (7.1) | $ (9.8) | ||
Write-off of noncurrent portion of broadcast rights | (6) | (18.9) | ||
Contract liabilities, current | 458.9 | $ 394 | ||
Unearned revenues | 318.6 | $ 132.3 | 132.3 | |
Revenue recognized | 13.2 | |||
Capitalized contract cost, net | 515.9 | |||
Current portion of subscription acquisition costs | 242 | 145 | ||
Noncurrent portion of subscription acquisition costs | 273.9 | 66.3 | ||
Contract amortization | 319.5 | |||
Subscription | ||||
Disaggregation of Revenue [Line Items] | ||||
Revenue recognized | 371.4 | |||
Adjustment | ||||
Disaggregation of Revenue [Line Items] | ||||
Unearned revenues | 5.2 | |||
Current portion of subscription acquisition costs | 26.7 | |||
Noncurrent portion of subscription acquisition costs | $ 5.2 | |||
Subscription Acquisition Costs, Current | ||||
Disaggregation of Revenue [Line Items] | ||||
Current portion of subscription acquisition costs | 242 | |||
Subscription Acquisition Costs, Noncurrent | ||||
Disaggregation of Revenue [Line Items] | ||||
Noncurrent portion of subscription acquisition costs | $ 273.9 | |||
Without Adoption of ASC 606 | ||||
Disaggregation of Revenue [Line Items] | ||||
Write-off of current portion of broadcast rights | $ 1.9 | |||
Write-off of noncurrent portion of broadcast rights | $ 8.2 |
Pension and Postretirement Be_3
Pension and Postretirement Benefit Plans (Narrative) (Details) £ in Millions | 3 Months Ended | 12 Months Ended | ||||
Sep. 30, 2018GBP (£) | Jun. 30, 2019USD ($) | Jun. 30, 2018USD ($) | Jun. 30, 2017USD ($) | Jun. 30, 2019GBP (£) | Dec. 31, 2018 | |
Defined Benefit Plan Disclosure [Line Items] | ||||||
Employer matching percentage of employee contributions up to first 4% of eligible compensation | 100.00% | 100.00% | ||||
Maximum percentage of employee eligible compensation with 100% matching contributions by employer | 4.00% | 4.00% | ||||
Employer matching percentage of employee contributions up to from 4-5% of eligible compensation | 50.00% | 50.00% | ||||
Maximum percentage of employee eligible compensation with 50% matching contributions by employer | 1.00% | 1.00% | ||||
Company contribution expense | $ 22,600,000 | $ 19,600,000 | $ 10,900,000 | |||
Postretirement life insurance | Key officers and retirees | ||||||
Defined Benefit Plan Disclosure [Line Items] | ||||||
Net periodic pension cost | 200,000 | 600,000 | $ 500,000 | |||
Accrued liability | 3,200,000 | 3,100,000 | ||||
Pension | ||||||
Defined Benefit Plan Disclosure [Line Items] | ||||||
Net actuarial gains (losses) | (2,500,000) | |||||
Prior service costs | 700,000 | |||||
Postretirement | ||||||
Defined Benefit Plan Disclosure [Line Items] | ||||||
Defined benefit liability reflected in accrued compensation and benefits | 600,000 | 600,000 | ||||
Defined benefit liability reflected in other noncurrent liabilities | 7,700,000 | 7,800,000 | ||||
Employer contributions (in gbp) | 100,000 | 500,000 | ||||
Net actuarial gains (losses) | 500,000 | |||||
Prior service costs | 0 | |||||
Expected benefit payments next fiscal year | 600,000 | |||||
Deferred Compensation Plan | ||||||
Defined Benefit Plan Disclosure [Line Items] | ||||||
Liabilities for the uncollateralized plans | 20,900,000 | 29,400,000 | ||||
Defined benefit liability reflected in accrued compensation and benefits | 4,700,000 | 8,400,000 | ||||
Defined benefit liability reflected in other noncurrent liabilities | $ 16,200,000 | 21,000,000 | ||||
IPC Plan | Pension | ||||||
Defined Benefit Plan Disclosure [Line Items] | ||||||
Employer contributions (in gbp) | £ | £ 60 | |||||
Required monthly contributions | £ | £ 0.9 | |||||
Basis points | 0.50% | |||||
Percent of funding deficit to be contributed by company | 50.00% | 50.00% | ||||
Domestic | ||||||
Defined Benefit Plan Disclosure [Line Items] | ||||||
Accumulated benefit obligation | $ 171,100,000 | 164,700,000 | ||||
Domestic | Pension | ||||||
Defined Benefit Plan Disclosure [Line Items] | ||||||
Defined benefit liability reflected in accrued compensation and benefits | 28,000,000 | 9,900,000 | ||||
Defined benefit liability reflected in other noncurrent liabilities | 35,300,000 | 47,400,000 | ||||
Employer contributions (in gbp) | 8,700,000 | 700,000 | ||||
Expected benefit payments next fiscal year | 43,400,000 | |||||
International | ||||||
Defined Benefit Plan Disclosure [Line Items] | ||||||
Accumulated benefit obligation | 725,300,000 | 721,500,000 | ||||
International | Pension | ||||||
Defined Benefit Plan Disclosure [Line Items] | ||||||
Defined benefit liability reflected in accrued compensation and benefits | 200,000 | 200,000 | ||||
Defined benefit liability reflected in other noncurrent liabilities | 10,100,000 | 17,200,000 | ||||
Employer contributions (in gbp) | 16,200,000 | $ 88,900,000 | ||||
Expected benefit payments next fiscal year | $ 15,000,000 | |||||
Time, Inc. | ||||||
Defined Benefit Plan Disclosure [Line Items] | ||||||
Employer matching percentage of employee contributions up to first 4% of eligible compensation | 100.00% | |||||
Maximum percentage of employee eligible compensation with 100% matching contributions by employer | 4.00% | |||||
Employer matching percentage of employee contributions up to from 4-5% of eligible compensation | 50.00% | |||||
Maximum percentage of employee eligible compensation with 50% matching contributions by employer | 2.00% | |||||
Employer matching percentage less any employer matching contribution within plan year up to first 6% of eligible compensation | 5.00% | 5.00% | ||||
Maximum percentage of employee eligible compensation with 5% matching contributions by employer less any contributions made during plan year | 6.00% | 6.00% |
Pension and Postretirement Be_4
Pension and Postretirement Benefit Plans (Schedule of Obligations and Funded Status) (Details) - USD ($) $ in Millions | 12 Months Ended | ||
Jun. 30, 2019 | Jun. 30, 2018 | Jun. 30, 2017 | |
Postretirement | |||
Change in Benefit Obligation [Roll Forward] | |||
Benefit obligation, beginning of year | $ 8.4 | $ 9.3 | |
Acquisitions | 0 | 0 | |
Service cost | 0 | 0.1 | $ 0.1 |
Interest cost | 0.3 | 0.3 | 0.3 |
Participant contributions | 0.9 | 0.8 | |
Plan amendments | 0 | 0 | |
Net actuarial loss (gain) | (0.4) | (0.8) | |
Benefits paid (including lump sums) | (0.9) | (1.3) | |
Settlements | 0 | 0 | |
Contractual termination benefits | 0 | 0 | |
Curtailments | 0 | 0 | |
Foreign currency exchange rate impact | 0 | 0 | |
Benefit obligation, end of year | 8.3 | 8.4 | 9.3 |
Change in Plan Assets [Roll Forward] | |||
Fair value of plan assets, beginning of year | 0 | 0 | |
Acquisitions | 0 | 0 | |
Actual return on plan assets | 0 | 0 | |
Employer contributions | 0.1 | 0.5 | |
Participant contributions | 0.8 | 0.8 | |
Benefits paid (including lump sums) | (0.9) | (1.3) | |
Settlements | 0 | 0 | |
Foreign currency exchange rate impact | 0 | 0 | |
Fair value of plan assets, end of year | 0 | 0 | 0 |
Over (under) funded status, end of year | (8.3) | (8.4) | |
Domestic | Pension | |||
Change in Benefit Obligation [Roll Forward] | |||
Benefit obligation, beginning of year | 179.4 | 170.9 | |
Acquisitions | 0 | 0 | |
Service cost | 11.5 | 13 | 12.5 |
Interest cost | 6.5 | 5.9 | 4.9 |
Participant contributions | 0 | 0 | |
Plan amendments | 0 | 1.2 | |
Net actuarial loss (gain) | 10.3 | 2.4 | |
Benefits paid (including lump sums) | (13.1) | (12.9) | |
Settlements | (8.4) | 0 | |
Contractual termination benefits | 1.3 | 0 | |
Curtailments | 0 | (1.1) | |
Foreign currency exchange rate impact | 0 | 0 | |
Benefit obligation, end of year | 187.5 | 179.4 | 170.9 |
Change in Plan Assets [Roll Forward] | |||
Fair value of plan assets, beginning of year | 139 | 139.2 | |
Acquisitions | 0 | 0 | |
Actual return on plan assets | 9.2 | 12 | |
Employer contributions | 8.7 | 0.7 | |
Participant contributions | 0 | 0 | |
Benefits paid (including lump sums) | (13.1) | (12.9) | |
Settlements | (8.4) | 0 | |
Foreign currency exchange rate impact | 0 | 0 | |
Fair value of plan assets, end of year | 135.4 | 139 | 139.2 |
Over (under) funded status, end of year | (52.1) | (40.4) | |
International | Pension | |||
Change in Benefit Obligation [Roll Forward] | |||
Benefit obligation, beginning of year | 721.5 | 0 | |
Acquisitions | 0 | 836.6 | |
Service cost | 0.1 | 0 | |
Interest cost | 16.9 | 8 | |
Participant contributions | 0 | 0 | |
Plan amendments | 7.1 | 0 | |
Net actuarial loss (gain) | 35.8 | (21) | |
Benefits paid (including lump sums) | (17) | (44.1) | |
Settlements | (12.7) | 0 | |
Contractual termination benefits | 0 | 0 | |
Curtailments | 0 | 0 | |
Foreign currency exchange rate impact | (26.4) | (58) | |
Benefit obligation, end of year | 725.3 | 721.5 | 0 |
Change in Plan Assets [Roll Forward] | |||
Fair value of plan assets, beginning of year | 841.5 | 0 | |
Acquisitions | 0 | 867.7 | |
Actual return on plan assets | 75.5 | (6.7) | |
Employer contributions | 16.2 | 88.9 | |
Participant contributions | 0 | 0 | |
Benefits paid (including lump sums) | (17) | (44.1) | |
Settlements | (12.7) | 0 | |
Foreign currency exchange rate impact | (31.4) | (64.3) | |
Fair value of plan assets, end of year | 872.1 | 841.5 | $ 0 |
Over (under) funded status, end of year | $ 146.8 | $ 120 |
Pension and Postretirement Be_5
Pension and Postretirement Benefit Plans (Schedule of Amounts Recognized in Balance Sheets) (Details) - USD ($) $ in Millions | Jun. 30, 2019 | Jun. 30, 2018 |
Pension | Domestic | ||
Other assets | ||
Prepaid benefit cost | $ 11.2 | $ 16.9 |
Accrued expenses-compensation and benefits | ||
Accrued benefit liability | (28) | (9.9) |
Other noncurrent liabilities | ||
Accrued benefit liability | (35.3) | (47.4) |
Net amount recognized, end of year | (52.1) | (40.4) |
Pension | International | ||
Other assets | ||
Prepaid benefit cost | 157.1 | 137.4 |
Accrued expenses-compensation and benefits | ||
Accrued benefit liability | (0.2) | (0.2) |
Other noncurrent liabilities | ||
Accrued benefit liability | (10.1) | (17.2) |
Net amount recognized, end of year | 146.8 | 120 |
Postretirement | ||
Other assets | ||
Prepaid benefit cost | 0 | 0 |
Accrued expenses-compensation and benefits | ||
Accrued benefit liability | (0.6) | (0.6) |
Other noncurrent liabilities | ||
Accrued benefit liability | (7.7) | (7.8) |
Net amount recognized, end of year | $ (8.3) | $ (8.4) |
Pension and Postretirement Be_6
Pension and Postretirement Benefit Plans (Schedule of Benefit Obligations in Excess of Plan Assets) (Details) - Pension - USD ($) $ in Millions | Jun. 30, 2019 | Jun. 30, 2018 |
Domestic | ||
Defined Benefit Plans and Other Postretirement Benefit Plans Table Text Block [Line Items] | ||
Projected benefit obligation | $ 63.4 | $ 57.3 |
Accumulated benefit obligation | 57.1 | 51.6 |
Fair value of plan assets | 0.1 | 0.1 |
International | ||
Defined Benefit Plans and Other Postretirement Benefit Plans Table Text Block [Line Items] | ||
Projected benefit obligation | 10.3 | 28.4 |
Accumulated benefit obligation | 10.3 | 28.4 |
Fair value of plan assets | $ 0 | $ 11 |
Pension and Postretirement Be_7
Pension and Postretirement Benefit Plans (Schedule of Net Periodic Benefit Costs) (Details) - USD ($) $ in Millions | 12 Months Ended | ||
Jun. 30, 2019 | Jun. 30, 2018 | Jun. 30, 2017 | |
Pension | Domestic | |||
Components of net periodic benefit costs | |||
Service cost | $ 11.5 | $ 13 | $ 12.5 |
Interest cost | 6.5 | 5.9 | 4.9 |
Expected return on plan assets | (9.7) | (10.5) | (9.2) |
Prior service cost (credit) amortization | 0.5 | 0.3 | 0.2 |
Actuarial loss (gain) amortization | 1.9 | 2 | 3.6 |
Settlement charge (credit) | 2.7 | 0 | 0 |
Contractual termination benefits | 1.3 | 0 | 0 |
Net periodic benefit costs (credit) | 14.7 | 10.7 | 12 |
Pension | International | |||
Components of net periodic benefit costs | |||
Service cost | 0.1 | 0 | |
Interest cost | 16.9 | 8 | |
Expected return on plan assets | (31.5) | (17.9) | |
Prior service cost (credit) amortization | 0 | 0 | |
Actuarial loss (gain) amortization | 0 | 0 | |
Settlement charge (credit) | (4.1) | 0.2 | |
Contractual termination benefits | 0 | 0 | |
Net periodic benefit costs (credit) | (18.6) | (9.7) | |
Postretirement | |||
Components of net periodic benefit costs | |||
Service cost | 0 | 0.1 | 0.1 |
Interest cost | 0.3 | 0.3 | 0.3 |
Expected return on plan assets | 0 | 0 | 0 |
Prior service cost (credit) amortization | 0 | (0.4) | (0.4) |
Actuarial loss (gain) amortization | (0.6) | (0.3) | (0.3) |
Settlement charge (credit) | 0 | 0 | 0 |
Contractual termination benefits | 0 | 0 | 0 |
Net periodic benefit costs (credit) | $ (0.3) | $ (0.3) | $ (0.3) |
Pension and Postretirement Be_8
Pension and Postretirement Benefit Plans (Schedule of Amounts Recognized in Accumulated Other Comprehensive Loss) (Details) - USD ($) $ in Millions | Jun. 30, 2019 | Jun. 30, 2018 |
Pension | Domestic | ||
Defined Benefit Plans and Other Postretirement Benefit Plans Table Text Block [Line Items] | ||
Unrecognized net actuarial losses (gains), net of taxes | $ 25.3 | $ 20.7 |
Unrecognized prior service cost (credit), net of taxes | 1.1 | 1.5 |
Total | 26.4 | 22.2 |
Pension | International | ||
Defined Benefit Plans and Other Postretirement Benefit Plans Table Text Block [Line Items] | ||
Unrecognized net actuarial losses (gains), net of taxes | (0.6) | 2.6 |
Unrecognized prior service cost (credit), net of taxes | 5.6 | 0 |
Total | 5 | 2.6 |
Postretirement | ||
Defined Benefit Plans and Other Postretirement Benefit Plans Table Text Block [Line Items] | ||
Unrecognized net actuarial losses (gains), net of taxes | (1.7) | (1.8) |
Unrecognized prior service cost (credit), net of taxes | 0 | 0 |
Total | $ (1.7) | $ (1.8) |
Pension and Postretirement Be_9
Pension and Postretirement Benefit Plans (Schedule of Assumptions) (Details) - USD ($) $ in Millions | 12 Months Ended | ||
Jun. 30, 2019 | Jun. 30, 2018 | Jun. 30, 2017 | |
Effect of One-Percentage Point Change in Assumed HealthCare Cost Trend Rates [Abstract] | |||
Effect of one percentage point increase on service and interest cost components | $ 0 | ||
Effect of one percentage point decrease on service and interest cost components | 0 | ||
Effect of one percentage point increase on postretirement benefit obligation | 0.4 | ||
Effect of one percentage point decrease on postretirement benefit obligation | $ (0.3) | ||
Postretirement | |||
Weighted average assumptions | |||
Discount rate | 3.45% | 4.10% | |
Rate of compensation increase | 3.50% | 3.50% | |
Weighted average assumptions | |||
Discount rate | 4.10% | 3.65% | 3.40% |
Rate of compensation increase | 3.50% | 3.50% | 3.50% |
Rate of increase in health care cost levels | |||
Initial level | 6.00% | 6.50% | 7.00% |
Ultimate level | 5.00% | 5.00% | 5.00% |
Years to ultimate level | 3 years | 4 years | 5 years |
Domestic | Pension | |||
Weighted average assumptions | |||
Discount rate | 3.39% | 4.03% | |
Rate of compensation increase | 3.09% | 3.50% | |
Weighted average assumptions | |||
Discount rate | 4.03% | 3.41% | 2.98% |
Expected return on plan assets | 8.00% | 8.00% | 8.00% |
Rate of compensation increase | 3.50% | 3.50% | 3.50% |
International | Pension | |||
Weighted average assumptions | |||
Discount rate | 2.24% | 2.57% | |
Weighted average assumptions | |||
Discount rate | 2.57% | 2.57% | |
Expected return on plan assets | 3.89% | 4.87% | |
Rate of compensation increase | 3.50% |
Pension and Postretirement B_10
Pension and Postretirement Benefit Plans (Schedule of Plan Assets, Allocations by Asset Category) (Details) - Pension | Jun. 30, 2019 | Jun. 30, 2018 |
Domestic | ||
Defined Benefit Plan Disclosure [Line Items] | ||
Target | 100.00% | 100.00% |
Actual | 100.00% | 100.00% |
Domestic | Equity securities | ||
Defined Benefit Plan Disclosure [Line Items] | ||
Target | 70.00% | 70.00% |
Actual | 68.00% | 70.00% |
Domestic | Fixed-income securities | ||
Defined Benefit Plan Disclosure [Line Items] | ||
Target | 30.00% | 30.00% |
Actual | 32.00% | 30.00% |
Domestic | Other securities | ||
Defined Benefit Plan Disclosure [Line Items] | ||
Target | 0.00% | 0.00% |
Actual | 0.00% | 0.00% |
International | ||
Defined Benefit Plan Disclosure [Line Items] | ||
Target | 100.00% | 100.00% |
Actual | 100.00% | 100.00% |
International | Equity securities | ||
Defined Benefit Plan Disclosure [Line Items] | ||
Target | 7.00% | 32.00% |
Actual | 7.00% | 18.00% |
International | Fixed-income securities | ||
Defined Benefit Plan Disclosure [Line Items] | ||
Target | 80.00% | 17.00% |
Actual | 79.00% | 29.00% |
International | Other securities | ||
Defined Benefit Plan Disclosure [Line Items] | ||
Target | 13.00% | 51.00% |
Actual | 14.00% | 53.00% |
Pension and Postretirement B_11
Pension and Postretirement Benefit Plans (Schedule of Fair Value Measurements for Pension Plan Assets) (Details) - Pension - USD ($) $ in Thousands | Jun. 30, 2019 | Jun. 30, 2018 | Jun. 30, 2017 |
Domestic | |||
Defined Benefit Plans and Other Postretirement Benefit Plans Table Text Block [Line Items] | |||
Fair value of plan assets | $ 135,400 | $ 139,000 | $ 139,200 |
Domestic | Equity | |||
Defined Benefit Plans and Other Postretirement Benefit Plans Table Text Block [Line Items] | |||
Fair value of plan assets | 91,800 | 97,000 | |
Domestic | Fixed Income | |||
Defined Benefit Plans and Other Postretirement Benefit Plans Table Text Block [Line Items] | |||
Fair value of plan assets | 43,000 | 40,400 | |
Domestic | Pooled separate accounts | |||
Defined Benefit Plans and Other Postretirement Benefit Plans Table Text Block [Line Items] | |||
Fair value of plan assets | 600 | 1,600 | |
Domestic | Quoted Prices (Level 1) | |||
Defined Benefit Plans and Other Postretirement Benefit Plans Table Text Block [Line Items] | |||
Fair value of plan assets | 68,400 | 74,000 | |
Domestic | Quoted Prices (Level 1) | Equity | |||
Defined Benefit Plans and Other Postretirement Benefit Plans Table Text Block [Line Items] | |||
Fair value of plan assets | 68,400 | 74,000 | |
Domestic | Quoted Prices (Level 1) | Fixed Income | |||
Defined Benefit Plans and Other Postretirement Benefit Plans Table Text Block [Line Items] | |||
Fair value of plan assets | 0 | 0 | |
Domestic | Quoted Prices (Level 1) | Pooled separate accounts | |||
Defined Benefit Plans and Other Postretirement Benefit Plans Table Text Block [Line Items] | |||
Fair value of plan assets | 0 | 0 | |
Domestic | Significant Other Observable Inputs (Level 2) | |||
Defined Benefit Plans and Other Postretirement Benefit Plans Table Text Block [Line Items] | |||
Fair value of plan assets | 67,000 | 65,000 | |
Domestic | Significant Other Observable Inputs (Level 2) | Equity | |||
Defined Benefit Plans and Other Postretirement Benefit Plans Table Text Block [Line Items] | |||
Fair value of plan assets | 23,400 | 23,000 | |
Domestic | Significant Other Observable Inputs (Level 2) | Fixed Income | |||
Defined Benefit Plans and Other Postretirement Benefit Plans Table Text Block [Line Items] | |||
Fair value of plan assets | 43,000 | 40,400 | |
Domestic | Significant Other Observable Inputs (Level 2) | Pooled separate accounts | |||
Defined Benefit Plans and Other Postretirement Benefit Plans Table Text Block [Line Items] | |||
Fair value of plan assets | 600 | 1,600 | |
Domestic | Significant Unobservable Inputs (Level 3) | |||
Defined Benefit Plans and Other Postretirement Benefit Plans Table Text Block [Line Items] | |||
Fair value of plan assets | 0 | 0 | |
Domestic | Significant Unobservable Inputs (Level 3) | Fixed Income | |||
Defined Benefit Plans and Other Postretirement Benefit Plans Table Text Block [Line Items] | |||
Fair value of plan assets | 0 | 0 | |
Domestic | Significant Unobservable Inputs (Level 3) | Pooled separate accounts | |||
Defined Benefit Plans and Other Postretirement Benefit Plans Table Text Block [Line Items] | |||
Fair value of plan assets | 0 | 0 | |
International | |||
Defined Benefit Plans and Other Postretirement Benefit Plans Table Text Block [Line Items] | |||
Fair value of plan assets | 872,100 | 841,500 | $ 0 |
International | Equity | |||
Defined Benefit Plans and Other Postretirement Benefit Plans Table Text Block [Line Items] | |||
Fair value of plan assets | 60,000 | 155,100 | |
International | Fixed Income | |||
Defined Benefit Plans and Other Postretirement Benefit Plans Table Text Block [Line Items] | |||
Fair value of plan assets | 393,900 | 242,000 | |
International | Cash and cash equivalents | |||
Defined Benefit Plans and Other Postretirement Benefit Plans Table Text Block [Line Items] | |||
Fair value of plan assets | 121,800 | 17,600 | |
International | Other | |||
Defined Benefit Plans and Other Postretirement Benefit Plans Table Text Block [Line Items] | |||
Fair value of plan assets | 296,400 | 415,800 | |
International | Guaranteed investment contract | |||
Defined Benefit Plans and Other Postretirement Benefit Plans Table Text Block [Line Items] | |||
Fair value of plan assets | 0 | 11,000 | |
International | Quoted Prices (Level 1) | |||
Defined Benefit Plans and Other Postretirement Benefit Plans Table Text Block [Line Items] | |||
Fair value of plan assets | 119,500 | 5,200 | |
International | Quoted Prices (Level 1) | Equity | |||
Defined Benefit Plans and Other Postretirement Benefit Plans Table Text Block [Line Items] | |||
Fair value of plan assets | 0 | 0 | |
International | Quoted Prices (Level 1) | Fixed Income | |||
Defined Benefit Plans and Other Postretirement Benefit Plans Table Text Block [Line Items] | |||
Fair value of plan assets | 0 | 0 | |
International | Quoted Prices (Level 1) | Cash and cash equivalents | |||
Defined Benefit Plans and Other Postretirement Benefit Plans Table Text Block [Line Items] | |||
Fair value of plan assets | 119,500 | 5,200 | |
International | Quoted Prices (Level 1) | Other | |||
Defined Benefit Plans and Other Postretirement Benefit Plans Table Text Block [Line Items] | |||
Fair value of plan assets | 0 | 0 | |
International | Quoted Prices (Level 1) | Guaranteed investment contract | |||
Defined Benefit Plans and Other Postretirement Benefit Plans Table Text Block [Line Items] | |||
Fair value of plan assets | 0 | 0 | |
International | Significant Other Observable Inputs (Level 2) | |||
Defined Benefit Plans and Other Postretirement Benefit Plans Table Text Block [Line Items] | |||
Fair value of plan assets | 752,600 | 836,300 | |
International | Significant Other Observable Inputs (Level 2) | Equity | |||
Defined Benefit Plans and Other Postretirement Benefit Plans Table Text Block [Line Items] | |||
Fair value of plan assets | 60,000 | 155,100 | |
International | Significant Other Observable Inputs (Level 2) | Fixed Income | |||
Defined Benefit Plans and Other Postretirement Benefit Plans Table Text Block [Line Items] | |||
Fair value of plan assets | 393,900 | 242,000 | |
International | Significant Other Observable Inputs (Level 2) | Cash and cash equivalents | |||
Defined Benefit Plans and Other Postretirement Benefit Plans Table Text Block [Line Items] | |||
Fair value of plan assets | 2,300 | 12,400 | |
International | Significant Other Observable Inputs (Level 2) | Other | |||
Defined Benefit Plans and Other Postretirement Benefit Plans Table Text Block [Line Items] | |||
Fair value of plan assets | 296,400 | 415,800 | |
International | Significant Other Observable Inputs (Level 2) | Guaranteed investment contract | |||
Defined Benefit Plans and Other Postretirement Benefit Plans Table Text Block [Line Items] | |||
Fair value of plan assets | 0 | 11,000 | |
International | Significant Unobservable Inputs (Level 3) | |||
Defined Benefit Plans and Other Postretirement Benefit Plans Table Text Block [Line Items] | |||
Fair value of plan assets | 0 | 0 | |
International | Significant Unobservable Inputs (Level 3) | Equity | |||
Defined Benefit Plans and Other Postretirement Benefit Plans Table Text Block [Line Items] | |||
Fair value of plan assets | 0 | 0 | |
International | Significant Unobservable Inputs (Level 3) | Fixed Income | |||
Defined Benefit Plans and Other Postretirement Benefit Plans Table Text Block [Line Items] | |||
Fair value of plan assets | 0 | 0 | |
International | Significant Unobservable Inputs (Level 3) | Cash and cash equivalents | |||
Defined Benefit Plans and Other Postretirement Benefit Plans Table Text Block [Line Items] | |||
Fair value of plan assets | 0 | 0 | |
International | Significant Unobservable Inputs (Level 3) | Other | |||
Defined Benefit Plans and Other Postretirement Benefit Plans Table Text Block [Line Items] | |||
Fair value of plan assets | 0 | 0 | |
International | Significant Unobservable Inputs (Level 3) | Guaranteed investment contract | |||
Defined Benefit Plans and Other Postretirement Benefit Plans Table Text Block [Line Items] | |||
Fair value of plan assets | $ 0 | $ 0 |
Pension and Postretirement B_12
Pension and Postretirement Benefit Plans (Schedule of Future Expected Benefit Payments) (Details) $ in Millions | Jun. 30, 2019USD ($) |
Postretirement | |
Defined Benefit Plans and Other Postretirement Benefit Plans Table Text Block [Line Items] | |
2020 | $ 0.6 |
2021 | 0.6 |
2022 | 0.6 |
2023 | 0.6 |
2024 | 0.6 |
2025-2029 | 2.6 |
Domestic | Pension | |
Defined Benefit Plans and Other Postretirement Benefit Plans Table Text Block [Line Items] | |
2020 | 43.4 |
2021 | 17.3 |
2022 | 12.6 |
2023 | 13.1 |
2024 | 13.9 |
2025-2029 | 72.9 |
International | Pension | |
Defined Benefit Plans and Other Postretirement Benefit Plans Table Text Block [Line Items] | |
2020 | 15 |
2021 | 16.2 |
2022 | 17.6 |
2023 | 18.1 |
2024 | 19.1 |
2025-2029 | $ 113.7 |
Share-based Compensation (Narra
Share-based Compensation (Narrative) (Details) - USD ($) $ in Millions | 12 Months Ended | ||
Jun. 30, 2019 | Jun. 30, 2018 | Jun. 30, 2017 | |
Share-based Payment Arrangement [Abstract] | |||
Share-based compensation | $ 22.9 | $ 30.4 | $ 12.8 |
Income tax benefit from compensation expense | $ 4.9 | $ 6.9 | $ 4.8 |
Share-based Compensation (Stock
Share-based Compensation (Stock Incentive Plan) (Details) - USD ($) $ / shares in Units, shares in Millions | 12 Months Ended | ||
Jun. 30, 2019 | Jun. 30, 2018 | Jun. 30, 2017 | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Number of shares available for grant (in shares) | 7.4 | ||
Restricted Stock | |||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Unearned compensation cost | $ 0 | ||
Granted, weighted average grant date fair value (in dollars per share) | $ 58.76 | $ 52 | $ 47.65 |
Total fair value of shares vested | $ 800,000 | $ 1,500,000 | $ 7,900,000 |
Restricted Stock | Minimum | |||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Award vesting period | 3 years | ||
Restricted Stock | Maximum | |||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Award vesting period | 5 years | ||
Restricted Stock Units | |||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Unearned compensation cost | $ 7,200,000 | ||
Granted, weighted average grant date fair value (in dollars per share) | $ 52.55 | $ 47.26 | $ 52.97 |
Total fair value of shares vested | $ 13,000,000 | $ 20,400,000 | $ 200,000 |
Unearned compensation cost, weighted average period of recognition (in years) | 1 year 9 months 18 days | ||
Stock Equivalent Units | |||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Total intrinsic value of stock equivalent units converted to common stock | $ 1,700,000 | $ 100,000 | $ 200,000 |
Employee Stock Option | |||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Award vesting period | 3 years | ||
Unearned compensation cost | $ 4,800,000 | ||
Granted, weighted average grant date fair value (in dollars per share) | $ 12.26 | $ 13.58 | $ 9.35 |
Unearned compensation cost, weighted average period of recognition (in years) | 1 year 6 months | ||
Award expiration period | 10 years | ||
Exercised, total intrinsic value | $ 1,700,000 | $ 10,900,000 | $ 15,200,000 |
Cash received from option exercises | 4,400,000 | 19,100,000 | 37,900,000 |
Tax benefit realized from option exercises | $ 400,000 | $ 2,700,000 | $ 5,900,000 |
Vesting Percent, Year One | Restricted Stock | |||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Vesting percentage | 33.00% | ||
Vesting Percent, Year One | Employee Stock Option | |||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Vesting percentage | 33.00% | ||
Vesting Percent, Year Two | Restricted Stock | |||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Vesting percentage | 33.00% | ||
Vesting Percent, Year Two | Employee Stock Option | |||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Vesting percentage | 33.00% | ||
Vesting Percent, Year Three | Restricted Stock | |||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Vesting percentage | 33.00% | ||
Vesting Percent, Year Three | Employee Stock Option | |||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Vesting percentage | 33.00% |
Share-based Compensation (Sched
Share-based Compensation (Schedule of Restricted Stock, Restricted Stock Units, and Stock Equivalent Units Activity) (Details) $ / shares in Units, $ in Millions | 12 Months Ended |
Jun. 30, 2019USD ($)$ / sharesshares | |
Restricted Stock | |
Shares | |
Nonvested at beginning of year (in shares) | shares | 20,600 |
Granted/additions (in shares) | shares | 11,600 |
Vested (in shares) | shares | (13,500) |
Nonvested at end of year (in shares) | shares | 18,700 |
Weighted Average Grant Date Fair Value | |
Nonvested at beginning of year (in dollars per share) | $ / shares | $ 48.94 |
Granted/additions (in dollars per share) | $ / shares | 58.76 |
Vested (in dollars per share) | $ / shares | 48.02 |
Nonvested at end of year (in dollars per share) | $ / shares | $ 55.72 |
Aggregate Intrinsic Value | $ | $ 1 |
Restricted Stock Units | |
Shares | |
Nonvested at beginning of year (in shares) | shares | 565,700 |
Granted/additions (in shares) | shares | 266,600 |
Vested (in shares) | shares | (250,900) |
Forfeited (in shares) | shares | (99,700) |
Nonvested at end of year (in shares) | shares | 481,700 |
Weighted Average Grant Date Fair Value | |
Nonvested at beginning of year (in dollars per share) | $ / shares | $ 49.78 |
Granted/additions (in dollars per share) | $ / shares | 52.55 |
Vested (in dollars per share) | $ / shares | 45.24 |
Forfeited (in dollars per share) | $ / shares | 51.42 |
Nonvested at end of year (in dollars per share) | $ / shares | $ 53.34 |
Aggregate Intrinsic Value | $ | $ 26.5 |
Stock Equivalent Units | |
Shares | |
Nonvested at beginning of year (in shares) | shares | 319,100 |
Granted/additions (in shares) | shares | 15,300 |
Converted to common stock (in shares) | shares | (92,200) |
Nonvested at end of year (in shares) | shares | 242,200 |
Weighted Average Grant Date Fair Value | |
Nonvested at beginning of year (in dollars per share) | $ / shares | $ 38.92 |
Granted/additions (in dollars per share) | $ / shares | 54.84 |
Converted to common stock (in dollars per share) | $ / shares | 38.92 |
Nonvested at end of year (in dollars per share) | $ / shares | $ 39.92 |
Aggregate Intrinsic Value | $ | $ 3.7 |
Share-based Compensation (Sch_2
Share-based Compensation (Schedule of Stock Option Activity) (Details) - USD ($) $ / shares in Units, $ in Millions | 12 Months Ended | ||
Jun. 30, 2019 | Jun. 30, 2018 | Jun. 30, 2017 | |
Options [Roll Forward] | |||
Outstanding, shares, at beginning of year (in shares) | 2,421,200 | ||
Granted, shares (in shares) | 674,300 | ||
Exercised, shares (in shares) | (109,800) | (500,000) | (900,000) |
Forfeited, shares (in shares) | (180,800) | ||
Outstanding, shares, at end of year (in shares) | 2,804,900 | 2,421,200 | |
Weighted Average Exercise Price [Abstract] | |||
Outstanding, weighted average exercise price per share, at beginning of year (in dollars per share) | $ 50.56 | ||
Granted, weighted average exercise price (in dollars per share) | 52.85 | ||
Exercised, weighted average exercise price (in dollars per share) | 40.13 | ||
Forfeited, weighted average exercise price (in dollars per share) | 52.29 | ||
Outstanding, weighted average exercise price per share, at end of year (in dollars per share) | $ 51.40 | $ 50.56 | |
Outstanding, weighted average remaining contractual term, at end of year (in years) | 7 years 3 months 18 days | ||
Outstanding, aggregate intrinsic value, at end of year | $ 12.6 | ||
Exercisable, shares, at end of year (in shares) | 1,418,300 | ||
Exercisable, weighted average exercise price, at end of year (in dollars per share) | $ 48.25 | ||
Exercisable, weighted average remaining contractual term, at end of year (in years) | 6 years 3 months 18 days | ||
Exercisable, aggregate intrinsic value, at end of year | $ 10.4 |
Share-based Compensation (Sch_3
Share-based Compensation (Schedule of Assumptions) (Details) - Employee Stock Option | 12 Months Ended | ||
Jun. 30, 2019 | Jun. 30, 2018 | Jun. 30, 2017 | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Risk free interest rate, minimum | 2.30% | 1.80% | 1.30% |
Risk free interest rate, maximum | 3.00% | 2.60% | 2.10% |
Expected dividend yield | 4.00% | 4.00% | 4.00% |
Expected option life | 7 years | ||
Expected stock price volatility, maximum | 33.00% | 28.00% | |
Expected stock price volatility, minimum | 35.00% | 36.00% | |
Expected stock price volatility | 29.00% | ||
Minimum | |||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Expected option life | 6 years | 4 years 10 months 24 days | |
Maximum | |||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Expected option life | 6 years 6 months | 7 years |
Redeemable Series A Preferred_3
Redeemable Series A Preferred Stock (Narrative) (Details) | Jan. 31, 2018USD ($)number_of_share_multiple$ / sharesshares | Jun. 30, 2019USD ($)$ / sharesshares | Jun. 30, 2018USD ($)$ / sharesshares | Jun. 30, 2017USD ($) | Jan. 30, 2018$ / sharesshares |
Temporary Equity [Line Items] | |||||
Preferred stock authorized (in shares) | shares | 2,500,000 | 2,500,000 | 5,000,000 | ||
Preferred stock par value (in usd per share) | $ / shares | $ 1 | $ 1 | |||
Liquidation preference per share (in usd per share) | $ / shares | $ 1,000 | $ 1,000 | |||
Number of warrants issued (in shares) | shares | 1,625,000 | ||||
Warrant exercise price (in usd per share) | $ / shares | $ 1 | ||||
Issued preferred stock, warrants, and options proceeds, net of issuance costs | $ 631,000,000 | $ 0 | $ 631,000,000 | $ 0 | |
Transaction costs | 19,000,000 | ||||
Proceeds from issuance of warrants | 103,100,000 | ||||
Proceeds from issuance of options to purchase stock | 12,500,000 | ||||
Proceeds from issuance of preferred stock | 515,400,000 | ||||
Series A Preferred Stock | |||||
Temporary Equity [Line Items] | |||||
Preferred stock authorized (in shares) | shares | 2,500,000 | ||||
Preferred stock par value (in usd per share) | $ / shares | $ 1 | ||||
Liquidation preference per share (in usd per share) | $ / shares | $ 1,000 | ||||
Preferred stock issued, value | $ 650,000,000 | ||||
Temporary equity, shares outstanding (in shares) | shares | 650,000 | ||||
Period for which preferred stock is non-callable | 3 years | ||||
Dividend as percentage of accrued stated value | 6.00% | ||||
Dividend, basis spread on variable rate | 0.50% | ||||
Multiple of shares used for determining accrued stated value | number_of_share_multiple | 1,000 | ||||
Partial redemption limit, accrued stated value (not less than) | $ 50,000,000 | ||||
Partial redemption limit, accrued stated value of preferred stock outstanding (not less than) | $ 100,000,000 | ||||
Trading days | 30 days | ||||
Series A Preferred Stock | Redemption during fourth or fifth year after issuance | |||||
Temporary Equity [Line Items] | |||||
Redemption percentage | 106.00% | ||||
Series A Preferred Stock | Redemption during sixth year after issuance | |||||
Temporary Equity [Line Items] | |||||
Redemption percentage | 103.00% | ||||
Series A Preferred Stock | Redemption after sixth year after issuance | |||||
Temporary Equity [Line Items] | |||||
Redemption percentage | 100.00% | ||||
Call Option | |||||
Temporary Equity [Line Items] | |||||
Options to purchase stock (in shares) | shares | 875,000 | ||||
Options to purchase stock, exercise price (in shares) | $ / shares | $ 70.50 |
Redeemable Series A Preferred_4
Redeemable Series A Preferred Stock (Schedule of Dividend Annual Rates) (Details) - Series A Preferred Stock | Jan. 31, 2018 |
Years 1 through 3 | |
Temporary Equity [Line Items] | |
Cash Dividend Annual Rate | 8.50% |
Accrued Dividend Annual Rate | 9.00% |
Year 4 | LIBOR | |
Temporary Equity [Line Items] | |
Cash Dividend Annual Rate, basis spread on variable rate | 8.50% |
Accrued Dividend Annual Rate, basis spread on variable rate | 9.00% |
Year 5 | LIBOR | |
Temporary Equity [Line Items] | |
Cash Dividend Annual Rate, basis spread on variable rate | 9.50% |
Accrued Dividend Annual Rate, basis spread on variable rate | 10.00% |
Year 6 through redemption | LIBOR | |
Temporary Equity [Line Items] | |
Cash Dividend Annual Rate, basis spread on variable rate | 10.50% |
Accrued Dividend Annual Rate, basis spread on variable rate | 11.00% |
Common Stock (Details)
Common Stock (Details) shares in Millions | 12 Months Ended | |||
Jun. 30, 2019USD ($)classesofstockvoteshares | Jun. 30, 2018USD ($)shares | Jun. 30, 2017USD ($)shares | May 31, 2014USD ($) | |
Class of Stock [Line Items] | ||||
Number of classes of common stock outstanding | classesofstock | 2 | |||
Authorized dollar amount of shares to be repurchased | $ 100,000,000 | |||
Remaining authorized repurchase amount | $ 50,300,000 | |||
Number of shares | shares | 0.2 | 0.5 | 0.9 | |
Cost at market value | $ 10,000,000 | $ 31,100,000 | $ 53,300,000 | |
Shares tendered for the exercise of price of options (in shares) | shares | 0.1 | 0.3 | 0.6 | |
Cost of shares tendered for the exercise price of options | $ 4,100,000 | $ 19,100,000 | $ 37,500,000 | |
Class B stock | ||||
Class of Stock [Line Items] | ||||
Votes per share | vote | 10 | |||
Common stock | ||||
Class of Stock [Line Items] | ||||
Votes per share | vote | 1 |
Earnings (Loss) Per Common Sh_3
Earnings (Loss) Per Common Share (Summary of Calculations of Earnings (Loss) per Share) (Details) - USD ($) $ / shares in Units, shares in Millions, $ in Millions | 3 Months Ended | 12 Months Ended | |||||||||
Jun. 30, 2019 | Mar. 31, 2019 | Dec. 31, 2018 | Sep. 30, 2018 | Jun. 30, 2018 | Mar. 31, 2018 | Dec. 31, 2017 | Sep. 30, 2017 | Jun. 30, 2019 | Jun. 30, 2018 | Jun. 30, 2017 | |
Earnings Per Share [Abstract] | |||||||||||
Net earnings | $ 46.3 | $ 99.4 | $ 188.9 | ||||||||
Participating warrants dividend | (3.6) | (1.8) | 0 | ||||||||
Preferred stock dividend | (55.9) | (22.9) | 0 | ||||||||
Accretion of Series A preferred stock | (17.6) | (7.2) | 0 | ||||||||
Other securities dividends | (1.2) | (1.1) | 0 | ||||||||
Basic earnings (loss) attributable to common shareholders | $ (32) | $ 66.4 | $ 188.9 | ||||||||
Basic weighted average common shares outstanding (in shares) | 45.3 | 44.9 | 44.6 | ||||||||
Basic earnings (loss) per common share (in dollars per share) | $ (0.72) | $ 0.10 | $ (0.03) | $ (0.06) | $ (0.06) | $ (2.74) | $ 3.55 | $ 0.75 | $ (0.71) | $ 1.48 | $ 4.23 |
Basic weighted average common shares outstanding (in shares) | 45.3 | 44.9 | 44.6 | ||||||||
Dilutive effect of stock options and equivalents (in shares) | 0.2 | 0.3 | 0.8 | ||||||||
Diluted weighted average common shares outstanding (in shares) | 45.5 | 45.2 | 45.4 | ||||||||
Diluted earnings (loss) attributable to common shareholders | $ (32) | $ 66.4 | $ 188.9 | ||||||||
Diluted earnings (loss) per common share (in dollars per share) | $ (0.72) | $ 0.10 | $ (0.01) | $ (0.06) | $ (0.06) | $ (2.74) | $ 3.49 | $ 0.73 | $ (0.70) | $ 1.47 | $ 4.16 |
Earnings (Loss) Per Common Sh_4
Earnings (Loss) Per Common Share (Narrative) (Details) - $ / shares | 12 Months Ended | ||
Jun. 30, 2019 | Jun. 30, 2018 | Jun. 30, 2017 | |
Antidilutive Securities Excluded from Computation of Earnings Per Share [Line Items] | |||
Options included in computation of dilutive loss per common share (in shares) | 200,000 | ||
Dilutive effect of stock options and equivalents (in shares) | 200,000 | 300,000 | 800,000 |
Options exercised (in shares) | 109,800 | 500,000 | 900,000 |
Series A Preferred Stock | |||
Antidilutive Securities Excluded from Computation of Earnings Per Share [Line Items] | |||
Antidilutive securities not included (in shares) | 700,000 | 700,000 | |
Warrant | |||
Antidilutive Securities Excluded from Computation of Earnings Per Share [Line Items] | |||
Antidilutive securities not included (in shares) | 1,600,000 | 700,000 | |
Stock Equivalent Units | |||
Antidilutive Securities Excluded from Computation of Earnings Per Share [Line Items] | |||
Antidilutive securities not included (in shares) | 300,000 | 300,000 | |
Restricted Stock | |||
Antidilutive Securities Excluded from Computation of Earnings Per Share [Line Items] | |||
Antidilutive securities not included (in shares) | 100,000 | 200,000 | |
Employee Stock Option | |||
Antidilutive Securities Excluded from Computation of Earnings Per Share [Line Items] | |||
Antidilutive securities not included (in shares) | 2,500,000 | 800,000 | 300,000 |
Antidilutive securities, weighted average exercise price (in dollars per share) | $ 63.86 | $ 62.71 | $ 54.28 |
Other Comprehensive Income (L_3
Other Comprehensive Income (Loss) (Details) - USD ($) $ in Millions | 12 Months Ended | ||
Jun. 30, 2019 | Jun. 30, 2018 | Jun. 30, 2017 | |
AOCI Attributable to Parent, Net of Tax [Roll Forward] | |||
Beginning balance | $ 1,097.5 | $ 996 | $ 889 |
Current-year adjustments, pre-tax | (11.9) | (13) | 15.4 |
Tax benefit (expense) | 2.3 | (0.7) | (5.9) |
Other comprehensive income (loss) | (9.6) | (13.7) | 9.5 |
Reclassification to retained earnings | (4) | ||
Ending balance | 974.6 | 1,097.5 | 996 |
Minimum Pension/Post Retirement Liability Adjustments | |||
AOCI Attributable to Parent, Net of Tax [Roll Forward] | |||
Beginning balance | (23.8) | (18.8) | (24.1) |
Current-year adjustments, pre-tax | (9.1) | (0.5) | 8.6 |
Tax benefit (expense) | 2.3 | (0.3) | (3.3) |
Other comprehensive income (loss) | (6.8) | (0.8) | 5.3 |
Reclassification to retained earnings | (4.2) | ||
Ending balance | (30.6) | (23.8) | (18.8) |
Foreign Currency Translation | |||
AOCI Attributable to Parent, Net of Tax [Roll Forward] | |||
Beginning balance | (12.9) | 0 | 0 |
Current-year adjustments, pre-tax | (2.8) | (12.9) | 0 |
Tax benefit (expense) | 0 | 0 | 0 |
Other comprehensive income (loss) | (2.8) | (12.9) | 0 |
Reclassification to retained earnings | 0 | ||
Ending balance | (15.7) | (12.9) | 0 |
Interest Rate Swaps | |||
AOCI Attributable to Parent, Net of Tax [Roll Forward] | |||
Beginning balance | 0 | (0.2) | (4.4) |
Current-year adjustments, pre-tax | 0 | 0.4 | 6.8 |
Tax benefit (expense) | 0 | (0.4) | (2.6) |
Other comprehensive income (loss) | 0 | 0 | 4.2 |
Reclassification to retained earnings | 0.2 | ||
Ending balance | 0 | 0 | (0.2) |
Accumulated Other Comprehensive Income (Loss) | |||
AOCI Attributable to Parent, Net of Tax [Roll Forward] | |||
Beginning balance | (36.7) | (19) | (28.5) |
Ending balance | $ (46.3) | $ (36.7) | $ (19) |
Financial Information about I_3
Financial Information about Industry Segments (Narrative) (Details) $ in Millions | 12 Months Ended | ||
Jun. 30, 2019USD ($)segmentmeasure | Jun. 30, 2018USD ($) | Jun. 30, 2017USD ($) | |
Segment Reporting [Abstract] | |||
Number of reportable segments | segment | 2 | ||
Number of principal financial measures | measure | 2 | ||
Segment Reporting Information [Line Items] | |||
Amortization of broadcast rights | $ 20 | $ 19.2 | $ 17.6 |
National Media | |||
Segment Reporting Information [Line Items] | |||
Impairment of intangible assets and goodwill | $ 41.8 | $ 22.7 | $ 5.3 |
Financial Information about I_4
Financial Information about Industry Segments (Schedule of Financial Information by Segment) (Details) - USD ($) $ in Millions | 3 Months Ended | 12 Months Ended | |||||||||
Jun. 30, 2019 | Mar. 31, 2019 | Dec. 31, 2018 | Sep. 30, 2018 | Jun. 30, 2018 | Mar. 31, 2018 | Dec. 31, 2017 | Sep. 30, 2017 | Jun. 30, 2019 | Jun. 30, 2018 | Jun. 30, 2017 | |
Segment Reporting Information [Line Items] | |||||||||||
Total revenues | $ 785.6 | $ 750.1 | $ 878.4 | $ 774.4 | $ 798.7 | $ 655 | $ 417.7 | $ 392.8 | $ 3,188.5 | $ 2,264.2 | $ 1,713.3 |
Income from operations | 23.5 | 75.6 | 133.7 | 54.2 | 66.5 | (72.5) | 36.7 | 56.2 | 287 | 86.9 | 308.2 |
Non-operating income, net | 24.2 | 0.7 | 0.9 | ||||||||
Interest expense, net | (170.6) | (97.2) | (18.8) | ||||||||
Earnings (loss) from continuing operations before income taxes | 140.6 | (9.6) | 290.3 | ||||||||
Depreciation and amortization | 247.6 | 129 | 53.8 | ||||||||
Assets | 6,136.9 | 6,770.9 | 6,136.9 | 6,770.9 | 2,729.7 | ||||||
Capital expenditures | 46.4 | 53.2 | 34.8 | ||||||||
Operating segments | |||||||||||
Segment Reporting Information [Line Items] | |||||||||||
Total revenues | 3,190.4 | 2,265.7 | 1,713.3 | ||||||||
Operating segments | National Media | |||||||||||
Segment Reporting Information [Line Items] | |||||||||||
Total revenues | 587.5 | 562.3 | 616.2 | 560.6 | 600.6 | 485.6 | 247.4 | 239 | 2,326.6 | 1,572.6 | 1,083.2 |
Income from operations | 6.4 | 54.5 | 47 | 18.1 | 41.4 | 4.5 | 11.6 | 27.5 | 126 | 85 | 146.4 |
Depreciation and amortization | 206.5 | 92.9 | 17.5 | ||||||||
Assets | 4,606.8 | 5,202 | 4,606.8 | 5,202 | 1,487.1 | ||||||
Capital expenditures | 13 | 11 | 4.5 | ||||||||
Operating segments | Local Media | |||||||||||
Segment Reporting Information [Line Items] | |||||||||||
Total revenues | 198.6 | 188.4 | 262.4 | 214.4 | 198.9 | 170.1 | 170.3 | 153.8 | 863.8 | 693.1 | 630.1 |
Income from operations | 62.6 | 41.6 | 106.6 | 67.5 | 58.2 | 38.3 | 49.9 | 40.3 | 278.3 | 186.7 | 211.6 |
Depreciation and amortization | 36.6 | 33.2 | 34.8 | ||||||||
Assets | 1,192.3 | 1,204.6 | 1,192.3 | 1,204.6 | 1,124.9 | ||||||
Capital expenditures | 25.1 | 21 | 12.2 | ||||||||
Intersegment revenue elimination | |||||||||||
Segment Reporting Information [Line Items] | |||||||||||
Total revenues | (0.5) | (0.6) | (0.2) | (0.6) | (0.8) | (0.7) | 0 | 0 | (1.9) | (1.5) | 0 |
Unallocated corporate | |||||||||||
Segment Reporting Information [Line Items] | |||||||||||
Income from operations | (45.5) | $ (20.5) | $ (19.9) | $ (31.4) | (33.1) | $ (115.3) | $ (24.8) | $ (11.6) | (117.3) | (184.8) | (49.8) |
Depreciation and amortization | 4.5 | 2.9 | 1.5 | ||||||||
Assets | $ 337.8 | $ 364.3 | 337.8 | 364.3 | 117.7 | ||||||
Capital expenditures | $ 8.3 | $ 21.2 | $ 18.1 |
Issuer, Guarantor, and Non-Gu_3
Issuer, Guarantor, and Non-Guarantor Condensed Consolidating Financial Information (Condensed Consolidated Balance Sheet) (Details) - USD ($) $ in Millions | Jun. 30, 2019 | Jul. 01, 2018 | Jun. 30, 2018 | Jun. 30, 2017 | Jun. 30, 2016 |
Current assets | |||||
Cash and cash equivalents | $ 45 | $ 437.6 | |||
Accounts receivable, net | 609.1 | 545.2 | |||
Inventories | 62.7 | 44.4 | |||
Current portion of subscription acquisition costs | 242 | 145 | |||
Current portion of broadcast rights | 7.1 | 9.8 | |||
Assets held-for-sale | 321 | 719.8 | |||
Other current assets | 63.2 | 114.9 | |||
Total current assets | 1,350.1 | 2,016.7 | |||
Net property, plant, and equipment | 450.3 | 483.7 | |||
Subscription acquisition costs | 273.9 | 66.3 | |||
Broadcast rights | 6 | 18.9 | |||
Deferred income taxes | 0 | ||||
Other assets | 263.6 | 263.3 | |||
Intangible assets, net | 1,813.6 | 2,006.2 | |||
Goodwill | 1,979.4 | 1,915.8 | $ 907.5 | ||
Intercompany receivable | 0 | 0 | |||
Intercompany notes receivable | 0 | 0 | |||
Investment in subsidiaries | 0 | 0 | |||
Total assets | 6,136.9 | 6,770.9 | 2,729.7 | ||
Current liabilities | |||||
Current portion of long-term debt | 0 | 17.7 | |||
Current portion of long-term broadcast rights payable | 6.6 | 8.9 | |||
Accounts payable | 242.6 | 195.1 | |||
Accrued expenses | 300.6 | 410.6 | |||
Current portion of unearned revenues | 458.9 | 393.5 | |||
Liabilities associated with assets held-for-sale | 252.1 | 200 | |||
Total current liabilities | 1,260.8 | 1,225.8 | |||
Long-term debt | 2,333.3 | 3,117.9 | |||
Long-term broadcast rights payable | 8.4 | 20.8 | |||
Unearned revenues | 318.6 | $ 132.3 | 132.3 | ||
Deferred income taxes | 506.2 | 437 | |||
Other noncurrent liabilities | 194.8 | 217 | |||
Investment in subsidiaries | 0 | 0 | |||
Intercompany payable | 0 | 0 | |||
Intercompany notes payable | 0 | 0 | |||
Total liabilities | 4,622.1 | 5,150.8 | |||
Redeemable, convertible Series A preferred stock | 540.2 | 522.6 | |||
Shareholders’ equity | 974.6 | 1,097.5 | $ 996 | $ 889 | |
Total liabilities, redeemable convertible preferred stock, and shareholders’ equity | 6,136.9 | 6,770.9 | |||
Eliminations | |||||
Current assets | |||||
Cash and cash equivalents | 0 | 0 | |||
Accounts receivable, net | 0 | (11.5) | |||
Inventories | 0 | 0 | |||
Current portion of subscription acquisition costs | (6.3) | 0 | |||
Current portion of broadcast rights | 0 | 0 | |||
Assets held-for-sale | 0 | 0 | |||
Other current assets | 0 | 0 | |||
Total current assets | (6.3) | (11.5) | |||
Net property, plant, and equipment | 0 | 0 | |||
Subscription acquisition costs | 0 | 0 | |||
Broadcast rights | 0 | 0 | |||
Deferred income taxes | (6.3) | ||||
Other assets | 0 | 0 | |||
Intangible assets, net | 0 | 0 | |||
Goodwill | 0 | 0 | |||
Intercompany receivable | (18,781.4) | (15,871.1) | |||
Intercompany notes receivable | (215.7) | (204.7) | |||
Investment in subsidiaries | (4,857.5) | (4,895.1) | |||
Total assets | (23,860.9) | (20,988.7) | |||
Current liabilities | |||||
Current portion of long-term debt | 0 | ||||
Current portion of long-term broadcast rights payable | 0 | 0 | |||
Accounts payable | 0 | (11.5) | |||
Accrued expenses | 0 | 0 | |||
Current portion of unearned revenues | (5.8) | 0.9 | |||
Liabilities associated with assets held-for-sale | 0 | 0 | |||
Total current liabilities | (5.8) | (10.6) | |||
Long-term debt | 0 | 0 | |||
Long-term broadcast rights payable | 0 | 0 | |||
Unearned revenues | 0 | 0 | |||
Deferred income taxes | 0 | (6.3) | |||
Other noncurrent liabilities | 0 | 0 | |||
Investment in subsidiaries | (74.8) | (58.8) | |||
Intercompany payable | (18,781.4) | (15,871.1) | |||
Intercompany notes payable | (215.7) | (204.7) | |||
Total liabilities | (19,077.7) | (16,151.5) | |||
Redeemable, convertible Series A preferred stock | 0 | 0 | |||
Shareholders’ equity | (4,783.2) | (4,837.2) | |||
Total liabilities, redeemable convertible preferred stock, and shareholders’ equity | (23,860.9) | (20,988.7) | |||
Meredith Corporation (Parent Issuer) | |||||
Current assets | |||||
Cash and cash equivalents | 30.3 | 195 | |||
Accounts receivable, net | 327.5 | 223.5 | |||
Inventories | 53.7 | 23.6 | |||
Current portion of subscription acquisition costs | 91.5 | 107 | |||
Current portion of broadcast rights | 4.9 | 7.7 | |||
Assets held-for-sale | 0 | 0 | |||
Other current assets | 46.5 | 55.3 | |||
Total current assets | 554.4 | 612.1 | |||
Net property, plant, and equipment | 340.8 | 162.4 | |||
Subscription acquisition costs | 152.3 | 57.1 | |||
Broadcast rights | 4.8 | 16.9 | |||
Deferred income taxes | 0 | ||||
Other assets | 55.8 | 60.4 | |||
Intangible assets, net | 627.7 | 676.2 | |||
Goodwill | 614.8 | 614.7 | |||
Intercompany receivable | 470.5 | 11.8 | |||
Intercompany notes receivable | 0 | 0 | |||
Investment in subsidiaries | 3,874.5 | 3,844.5 | |||
Total assets | 6,695.6 | 6,056.1 | |||
Current liabilities | |||||
Current portion of long-term debt | 17.7 | ||||
Current portion of long-term broadcast rights payable | 4.5 | 6.9 | |||
Accounts payable | 141.5 | 67.2 | |||
Accrued expenses | 190.9 | 142.6 | |||
Current portion of unearned revenues | 183.2 | 171.5 | |||
Liabilities associated with assets held-for-sale | 0 | 0 | |||
Total current liabilities | 520.1 | 405.9 | |||
Long-term debt | 2,333.3 | 3,117.9 | |||
Long-term broadcast rights payable | 6.7 | 18.3 | |||
Unearned revenues | 155.7 | 82.3 | |||
Deferred income taxes | 221.8 | 209.5 | |||
Other noncurrent liabilities | 91 | 99.4 | |||
Investment in subsidiaries | 0 | 0 | |||
Intercompany payable | 1,852.2 | 502.7 | |||
Intercompany notes payable | 0 | 0 | |||
Total liabilities | 5,180.8 | 4,436 | |||
Redeemable, convertible Series A preferred stock | 540.2 | 522.6 | |||
Shareholders’ equity | 974.6 | 1,097.5 | |||
Total liabilities, redeemable convertible preferred stock, and shareholders’ equity | 6,695.6 | 6,056.1 | |||
Guarantor Subsidiaries | |||||
Current assets | |||||
Cash and cash equivalents | 3.2 | 202.8 | |||
Accounts receivable, net | 267.4 | 333.2 | |||
Inventories | 8.9 | 20.7 | |||
Current portion of subscription acquisition costs | 156.8 | 38 | |||
Current portion of broadcast rights | 2.2 | 2.1 | |||
Assets held-for-sale | 208.8 | 654.6 | |||
Other current assets | 14.1 | 37.6 | |||
Total current assets | 661.4 | 1,289 | |||
Net property, plant, and equipment | 107.8 | 318.1 | |||
Subscription acquisition costs | 121.6 | 9.2 | |||
Broadcast rights | 1.2 | 2 | |||
Deferred income taxes | 0 | ||||
Other assets | 28.8 | 5.4 | |||
Intangible assets, net | 1,181 | 1,329 | |||
Goodwill | 1,317.6 | 1,266.9 | |||
Intercompany receivable | 10,352.3 | 8,086.1 | |||
Intercompany notes receivable | 215.5 | 204.7 | |||
Investment in subsidiaries | 983 | 1,050.6 | |||
Total assets | 14,970.2 | 13,561 | |||
Current liabilities | |||||
Current portion of long-term debt | 0 | ||||
Current portion of long-term broadcast rights payable | 2.1 | 2 | |||
Accounts payable | 90.4 | 95.4 | |||
Accrued expenses | 105.1 | 263.4 | |||
Current portion of unearned revenues | 277.7 | 213.4 | |||
Liabilities associated with assets held-for-sale | 190.8 | 125.8 | |||
Total current liabilities | 666.1 | 700 | |||
Long-term debt | 0 | 0 | |||
Long-term broadcast rights payable | 1.7 | 2.5 | |||
Unearned revenues | 162.9 | 50.2 | |||
Deferred income taxes | 266.2 | 233.8 | |||
Other noncurrent liabilities | 84.2 | 97.8 | |||
Investment in subsidiaries | 0 | 0 | |||
Intercompany payable | 9,105 | 7,846.4 | |||
Intercompany notes payable | 0.2 | 0 | |||
Total liabilities | 10,286.3 | 8,930.7 | |||
Redeemable, convertible Series A preferred stock | 0 | 0 | |||
Shareholders’ equity | 4,683.9 | 4,630.3 | |||
Total liabilities, redeemable convertible preferred stock, and shareholders’ equity | 14,970.2 | 13,561 | |||
Non-Guarantor Subsidiaries | |||||
Current assets | |||||
Cash and cash equivalents | 11.5 | 39.8 | |||
Accounts receivable, net | 14.2 | 0 | |||
Inventories | 0.1 | 0.1 | |||
Current portion of subscription acquisition costs | 0 | 0 | |||
Current portion of broadcast rights | 0 | 0 | |||
Assets held-for-sale | 112.2 | 65.2 | |||
Other current assets | 2.6 | 22 | |||
Total current assets | 140.6 | 127.1 | |||
Net property, plant, and equipment | 1.7 | 3.2 | |||
Subscription acquisition costs | 0 | 0 | |||
Broadcast rights | 0 | 0 | |||
Deferred income taxes | 6.3 | ||||
Other assets | 179 | 197.5 | |||
Intangible assets, net | 4.9 | 1 | |||
Goodwill | 47 | 34.2 | |||
Intercompany receivable | 7,958.6 | 7,773.2 | |||
Intercompany notes receivable | 0.2 | 0 | |||
Investment in subsidiaries | 0 | 0 | |||
Total assets | 8,332 | 8,142.5 | |||
Current liabilities | |||||
Current portion of long-term debt | 0 | ||||
Current portion of long-term broadcast rights payable | 0 | 0 | |||
Accounts payable | 10.7 | 44 | |||
Accrued expenses | 4.6 | 4.6 | |||
Current portion of unearned revenues | 3.8 | 7.7 | |||
Liabilities associated with assets held-for-sale | 61.3 | 74.2 | |||
Total current liabilities | 80.4 | 130.5 | |||
Long-term debt | 0 | 0 | |||
Long-term broadcast rights payable | 0 | 0 | |||
Unearned revenues | 0 | (0.2) | |||
Deferred income taxes | 18.2 | 0 | |||
Other noncurrent liabilities | 19.6 | 19.8 | |||
Investment in subsidiaries | 74.8 | 58.8 | |||
Intercompany payable | 7,824.2 | 7,522 | |||
Intercompany notes payable | 215.5 | 204.7 | |||
Total liabilities | 8,232.7 | 7,935.6 | |||
Redeemable, convertible Series A preferred stock | 0 | 0 | |||
Shareholders’ equity | 99.3 | 206.9 | |||
Total liabilities, redeemable convertible preferred stock, and shareholders’ equity | $ 8,332 | $ 8,142.5 |
Issuer, Guarantor, and Non-Gu_4
Issuer, Guarantor, and Non-Guarantor Condensed Consolidating Financial Information (Condensed Consolidated Statement of Comprehensive Income) (Details) - USD ($) $ in Millions | 3 Months Ended | 12 Months Ended | |||||||||
Jun. 30, 2019 | Mar. 31, 2019 | Dec. 31, 2018 | Sep. 30, 2018 | Jun. 30, 2018 | Mar. 31, 2018 | Dec. 31, 2017 | Sep. 30, 2017 | Jun. 30, 2019 | Jun. 30, 2018 | Jun. 30, 2017 | |
Condensed Financial Statements, Captions [Line Items] | |||||||||||
Total revenues | $ 785.6 | $ 750.1 | $ 878.4 | $ 774.4 | $ 798.7 | $ 655 | $ 417.7 | $ 392.8 | $ 3,188.5 | $ 2,264.2 | $ 1,713.3 |
Operating expenses | |||||||||||
Production, distribution, and editorial | 1,161.2 | 868 | 608.4 | ||||||||
Selling, general, and administrative | 346 | 350.3 | 1,350 | 987.5 | 726.4 | ||||||
Acquisition, disposition, and restructuring related activities | 100.9 | 170.1 | 10.3 | ||||||||
Depreciation and amortization | 247.6 | 129 | 53.8 | ||||||||
Impairment of goodwill and other long-lived assets | 41.8 | 22.7 | 6.2 | ||||||||
Total operating expenses | 2,901.5 | 2,177.3 | 1,405.1 | ||||||||
Income (loss) from operations | 23.5 | 75.6 | 133.7 | 54.2 | 66.5 | (72.5) | 36.7 | 56.2 | 287 | 86.9 | 308.2 |
Non-operating income (expense), net | 24.2 | 0.7 | 0.9 | ||||||||
Interest income (expense), net | (170.6) | (97.2) | (18.8) | ||||||||
Earnings (loss) from continuing operations before income taxes | 140.6 | (9.6) | 290.3 | ||||||||
Income tax benefit (expense) | (11.5) | 123.6 | (101.4) | ||||||||
Earnings (loss) from continuing operations | (3.6) | 28.4 | 88.1 | 16.2 | 16.6 | (95.4) | 159.4 | 33.4 | 129.1 | 114 | 188.9 |
Gain (loss) from discontinued operations, net of income taxes | (9.4) | (4.7) | (69.5) | 0.8 | 0.3 | (14.9) | 0 | 0 | (82.8) | (14.6) | 0 |
Earnings (loss) before equity income (loss) | 46.3 | 99.4 | 188.9 | ||||||||
Earnings (loss) from equity in subsidiaries | 0 | 0 | 0 | ||||||||
Net earnings (loss) | $ (13) | $ 23.7 | 18.6 | 17 | $ 16.9 | $ (110.3) | $ 159.4 | $ 33.4 | 46.3 | 99.4 | 188.9 |
Total comprehensive income (loss) | 36.7 | 85.7 | 198.4 | ||||||||
Advertising related | |||||||||||
Condensed Financial Statements, Captions [Line Items] | |||||||||||
Total revenues | 1,686.6 | 1,190.7 | 934.1 | ||||||||
Consumer related | |||||||||||
Condensed Financial Statements, Captions [Line Items] | |||||||||||
Total revenues | $ 358.3 | $ 316.1 | 1,393.6 | 921.3 | 613.5 | ||||||
Other | |||||||||||
Condensed Financial Statements, Captions [Line Items] | |||||||||||
Total revenues | 108.3 | 152.2 | 165.7 | ||||||||
Eliminations | |||||||||||
Condensed Financial Statements, Captions [Line Items] | |||||||||||
Total revenues | (102.4) | (87.8) | 0 | ||||||||
Operating expenses | |||||||||||
Production, distribution, and editorial | (91) | (83.2) | 0 | ||||||||
Selling, general, and administrative | (11.8) | (3.8) | 0 | ||||||||
Acquisition, disposition, and restructuring related activities | 0 | 0 | 0 | ||||||||
Depreciation and amortization | 0 | 0 | 0 | ||||||||
Impairment of goodwill and other long-lived assets | 0 | 0 | 0 | ||||||||
Total operating expenses | (102.8) | (87) | 0 | ||||||||
Income (loss) from operations | 0.4 | (0.8) | 0 | ||||||||
Non-operating income (expense), net | 0 | 0 | 0 | ||||||||
Interest income (expense), net | 0 | 0 | 0 | ||||||||
Earnings (loss) from continuing operations before income taxes | 0.4 | (0.8) | 0 | ||||||||
Income tax benefit (expense) | 0 | 0 | 0 | ||||||||
Earnings (loss) from continuing operations | 0.4 | (0.8) | |||||||||
Gain (loss) from discontinued operations, net of income taxes | 0 | 0 | |||||||||
Earnings (loss) before equity income (loss) | 0.4 | (0.8) | 0 | ||||||||
Earnings (loss) from equity in subsidiaries | (96.8) | (3.5) | (77.3) | ||||||||
Net earnings (loss) | (96.4) | (4.3) | (77.3) | ||||||||
Total comprehensive income (loss) | (96.4) | (4.3) | (77.3) | ||||||||
Eliminations | Advertising related | |||||||||||
Condensed Financial Statements, Captions [Line Items] | |||||||||||
Total revenues | (0.4) | 0 | 0 | ||||||||
Eliminations | Consumer related | |||||||||||
Condensed Financial Statements, Captions [Line Items] | |||||||||||
Total revenues | (70) | (61) | 0 | ||||||||
Eliminations | Other | |||||||||||
Condensed Financial Statements, Captions [Line Items] | |||||||||||
Total revenues | (32) | (26.8) | 0 | ||||||||
Meredith Corporation (Parent Issuer) | |||||||||||
Condensed Financial Statements, Captions [Line Items] | |||||||||||
Total revenues | 1,188.1 | 1,204.8 | 1,239.1 | ||||||||
Operating expenses | |||||||||||
Production, distribution, and editorial | 510.8 | 488.7 | 477.1 | ||||||||
Selling, general, and administrative | 555 | 509.5 | 538.6 | ||||||||
Acquisition, disposition, and restructuring related activities | 34 | 58.4 | 8.3 | ||||||||
Depreciation and amortization | 44 | 33.3 | 37.6 | ||||||||
Impairment of goodwill and other long-lived assets | 39.8 | 22.7 | 0.9 | ||||||||
Total operating expenses | 1,183.6 | 1,112.6 | 1,062.5 | ||||||||
Income (loss) from operations | 4.5 | 92.2 | 176.6 | ||||||||
Non-operating income (expense), net | 3.6 | (9.1) | 0.9 | ||||||||
Interest income (expense), net | (172.2) | (95.4) | (14.2) | ||||||||
Earnings (loss) from continuing operations before income taxes | (164.1) | (12.3) | 163.3 | ||||||||
Income tax benefit (expense) | 34.4 | 116.6 | (51.7) | ||||||||
Earnings (loss) from continuing operations | (129.7) | 104.3 | |||||||||
Gain (loss) from discontinued operations, net of income taxes | 0 | (12.2) | |||||||||
Earnings (loss) before equity income (loss) | (129.7) | 92.1 | 111.6 | ||||||||
Earnings (loss) from equity in subsidiaries | 176 | 7.3 | 77.3 | ||||||||
Net earnings (loss) | 46.3 | 99.4 | 188.9 | ||||||||
Total comprehensive income (loss) | 41.6 | 101.5 | 198.4 | ||||||||
Meredith Corporation (Parent Issuer) | Advertising related | |||||||||||
Condensed Financial Statements, Captions [Line Items] | |||||||||||
Total revenues | 602.2 | 625.7 | 671.6 | ||||||||
Meredith Corporation (Parent Issuer) | Consumer related | |||||||||||
Condensed Financial Statements, Captions [Line Items] | |||||||||||
Total revenues | 536.9 | 545.9 | 524.6 | ||||||||
Meredith Corporation (Parent Issuer) | Other | |||||||||||
Condensed Financial Statements, Captions [Line Items] | |||||||||||
Total revenues | 49 | 33.2 | 42.9 | ||||||||
Guarantor Subsidiaries | |||||||||||
Condensed Financial Statements, Captions [Line Items] | |||||||||||
Total revenues | 2,038.5 | 1,034.6 | 341.1 | ||||||||
Operating expenses | |||||||||||
Production, distribution, and editorial | 712.9 | 420.4 | 100.2 | ||||||||
Selling, general, and administrative | 800.9 | 432.1 | 105.4 | ||||||||
Acquisition, disposition, and restructuring related activities | 56.8 | 111.7 | 0 | ||||||||
Depreciation and amortization | 201 | 94.4 | 15.7 | ||||||||
Impairment of goodwill and other long-lived assets | 2 | 0 | 5.3 | ||||||||
Total operating expenses | 1,773.6 | 1,058.6 | 226.6 | ||||||||
Income (loss) from operations | 264.9 | (24) | 114.5 | ||||||||
Non-operating income (expense), net | 9.5 | 0.6 | 0 | ||||||||
Interest income (expense), net | 14.9 | 7.2 | 0 | ||||||||
Earnings (loss) from continuing operations before income taxes | 289.3 | (16.2) | 114.5 | ||||||||
Income tax benefit (expense) | (42.5) | 8.4 | (45.5) | ||||||||
Earnings (loss) from continuing operations | 246.8 | (7.8) | |||||||||
Gain (loss) from discontinued operations, net of income taxes | (104.1) | 18.6 | |||||||||
Earnings (loss) before equity income (loss) | 142.7 | 10.8 | 69 | ||||||||
Earnings (loss) from equity in subsidiaries | (65.5) | 6.9 | 0 | ||||||||
Net earnings (loss) | 77.2 | 17.7 | 69 | ||||||||
Total comprehensive income (loss) | 77.2 | 17.7 | 69 | ||||||||
Guarantor Subsidiaries | Advertising related | |||||||||||
Condensed Financial Statements, Captions [Line Items] | |||||||||||
Total revenues | 1,077 | 561.3 | 260.7 | ||||||||
Guarantor Subsidiaries | Consumer related | |||||||||||
Condensed Financial Statements, Captions [Line Items] | |||||||||||
Total revenues | 884 | 414.8 | 78.6 | ||||||||
Guarantor Subsidiaries | Other | |||||||||||
Condensed Financial Statements, Captions [Line Items] | |||||||||||
Total revenues | 77.5 | 58.5 | 1.8 | ||||||||
Non-Guarantor Subsidiaries | |||||||||||
Condensed Financial Statements, Captions [Line Items] | |||||||||||
Total revenues | 64.3 | 112.6 | 133.1 | ||||||||
Operating expenses | |||||||||||
Production, distribution, and editorial | 28.5 | 42.1 | 31.1 | ||||||||
Selling, general, and administrative | 5.9 | 49.7 | 82.4 | ||||||||
Acquisition, disposition, and restructuring related activities | 10.1 | 0 | 2 | ||||||||
Depreciation and amortization | 2.6 | 1.3 | 0.5 | ||||||||
Impairment of goodwill and other long-lived assets | 0 | 0 | 0 | ||||||||
Total operating expenses | 47.1 | 93.1 | 116 | ||||||||
Income (loss) from operations | 17.2 | 19.5 | 17.1 | ||||||||
Non-operating income (expense), net | 11.1 | 9.2 | 0 | ||||||||
Interest income (expense), net | (13.3) | (9) | (4.6) | ||||||||
Earnings (loss) from continuing operations before income taxes | 15 | 19.7 | 12.5 | ||||||||
Income tax benefit (expense) | (3.4) | (1.4) | (4.2) | ||||||||
Earnings (loss) from continuing operations | 11.6 | 18.3 | |||||||||
Gain (loss) from discontinued operations, net of income taxes | 21.3 | (21) | |||||||||
Earnings (loss) before equity income (loss) | 32.9 | (2.7) | 8.3 | ||||||||
Earnings (loss) from equity in subsidiaries | (13.7) | (10.7) | 0 | ||||||||
Net earnings (loss) | 19.2 | (13.4) | 8.3 | ||||||||
Total comprehensive income (loss) | 14.3 | (29.2) | 8.3 | ||||||||
Non-Guarantor Subsidiaries | Advertising related | |||||||||||
Condensed Financial Statements, Captions [Line Items] | |||||||||||
Total revenues | 7.8 | 3.7 | 1.8 | ||||||||
Non-Guarantor Subsidiaries | Consumer related | |||||||||||
Condensed Financial Statements, Captions [Line Items] | |||||||||||
Total revenues | 42.7 | 21.6 | 10.3 | ||||||||
Non-Guarantor Subsidiaries | Other | |||||||||||
Condensed Financial Statements, Captions [Line Items] | |||||||||||
Total revenues | $ 13.8 | $ 87.3 | $ 121 |
Issuer, Guarantor, and Non-Gu_5
Issuer, Guarantor, and Non-Guarantor Condensed Consolidating Financial Information (Condensed Consolidated Statement of Cash Flows) (Details) - USD ($) $ in Millions | Jan. 31, 2018 | Jun. 30, 2019 | Jun. 30, 2018 | Jun. 30, 2017 |
Condensed Financial Statements, Captions [Line Items] | ||||
Cash flows from operating activities | $ 245.3 | $ 149.9 | $ 218.6 | |
Cash flows from investing activities | ||||
Acquisitions of and investments in businesses, net of cash acquired | (18.4) | (2,786.5) | (84.4) | |
Proceeds from disposition of assets, net of cash sold | 349.1 | 219.2 | 1.5 | |
Proceeds received in advance of sale of business | 90 | 0 | 0 | |
Additions to property, plant, and equipment | (46.4) | (53.2) | (34.8) | |
Other | 0 | 3.8 | 0 | |
Net cash provided by (used in) investing activities | 374.3 | (2,616.7) | (117.7) | |
Cash flows from financing activities | ||||
Proceeds from issuance of long-term debt | 210 | 3,260 | 380 | |
Repayments of long-term debt | (1,037) | (765.1) | (374.4) | |
Issued preferred stock, warrants, and options proceeds, net of issuance costs | $ 631 | 0 | 631 | 0 |
Dividends paid | (161.9) | (121.5) | (91.9) | |
Purchases of Company stock | (10) | (31.1) | (53.3) | |
Proceeds from common stock issued | 4.6 | 19.3 | 38 | |
Excess tax benefits from share-based payments | 6.8 | |||
Payment of acquisition related contingent consideration | (19.3) | (4.3) | (7.3) | |
Debt acquisition costs | 0 | (70.8) | (1.5) | |
Net increase (decrease) in intercompany obligations | 0 | 0 | 0 | |
Net cash provided by (used in) financing activities | (1,013.6) | 2,917.5 | (103.6) | |
Effect of exchange rate changes on cash and cash equivalents | (1.4) | (4.1) | 0 | |
Change in cash held-for-sale | 2.8 | (31.3) | 0 | |
Net increase (decrease) in cash and cash equivalents | (392.6) | 415.3 | (2.7) | |
Cash and cash equivalents at beginning of year | 437.6 | 22.3 | 25 | |
Cash and cash equivalents at end of year | 45 | 437.6 | 22.3 | |
Eliminations | ||||
Condensed Financial Statements, Captions [Line Items] | ||||
Cash flows from operating activities | 0 | 0 | 0 | |
Cash flows from investing activities | ||||
Acquisitions of and investments in businesses, net of cash acquired | 0 | 0 | 0 | |
Proceeds from disposition of assets, net of cash sold | 0 | 0 | 0 | |
Proceeds received in advance of sale of business | 0 | |||
Additions to property, plant, and equipment | 0 | 0 | 0 | |
Other | 0 | |||
Net cash provided by (used in) investing activities | 0 | 0 | 0 | |
Cash flows from financing activities | ||||
Proceeds from issuance of long-term debt | 0 | 0 | 0 | |
Repayments of long-term debt | 0 | 0 | 0 | |
Issued preferred stock, warrants, and options proceeds, net of issuance costs | 0 | |||
Dividends paid | 0 | 0 | 0 | |
Purchases of Company stock | 0 | 0 | 0 | |
Proceeds from common stock issued | 0 | 0 | 0 | |
Excess tax benefits from share-based payments | 0 | |||
Payment of acquisition related contingent consideration | 0 | 0 | 0 | |
Debt acquisition costs | 0 | 0 | ||
Net increase (decrease) in intercompany obligations | 0 | 0 | 0 | |
Net cash provided by (used in) financing activities | 0 | 0 | 0 | |
Effect of exchange rate changes on cash and cash equivalents | 0 | 0 | ||
Change in cash held-for-sale | 0 | 0 | ||
Net increase (decrease) in cash and cash equivalents | 0 | 0 | 0 | |
Cash and cash equivalents at beginning of year | 0 | 0 | 0 | |
Cash and cash equivalents at end of year | 0 | 0 | 0 | |
Meredith Corporation (Parent Issuer) | ||||
Condensed Financial Statements, Captions [Line Items] | ||||
Cash flows from operating activities | (0.3) | (465.4) | 240 | |
Cash flows from investing activities | ||||
Acquisitions of and investments in businesses, net of cash acquired | (18.4) | (2,786.5) | (84.4) | |
Proceeds from disposition of assets, net of cash sold | 13.3 | 86.4 | 1.5 | |
Proceeds received in advance of sale of business | 0 | |||
Additions to property, plant, and equipment | (37.5) | (41.2) | (28.8) | |
Other | 3.8 | |||
Net cash provided by (used in) investing activities | (42.6) | (2,737.5) | (111.7) | |
Cash flows from financing activities | ||||
Proceeds from issuance of long-term debt | 210 | 3,260 | 365 | |
Repayments of long-term debt | (1,037) | (689.7) | (354.4) | |
Issued preferred stock, warrants, and options proceeds, net of issuance costs | 631 | |||
Dividends paid | (161.9) | (121.5) | (91.9) | |
Purchases of Company stock | (10) | (31.1) | (53.3) | |
Proceeds from common stock issued | 4.6 | 19.3 | 38 | |
Excess tax benefits from share-based payments | 6.8 | |||
Payment of acquisition related contingent consideration | (19.3) | (3.2) | (7.3) | |
Debt acquisition costs | (70.8) | (1.5) | ||
Net increase (decrease) in intercompany obligations | 891.8 | 382.1 | (32.1) | |
Net cash provided by (used in) financing activities | (121.8) | 3,376.1 | (130.7) | |
Effect of exchange rate changes on cash and cash equivalents | 0 | 0 | ||
Change in cash held-for-sale | 0 | 0 | ||
Net increase (decrease) in cash and cash equivalents | (164.7) | 173.2 | (2.4) | |
Cash and cash equivalents at beginning of year | 195 | 21.8 | 24.2 | |
Cash and cash equivalents at end of year | 30.3 | 195 | 21.8 | |
Guarantor Subsidiaries | ||||
Condensed Financial Statements, Captions [Line Items] | ||||
Cash flows from operating activities | 403.8 | 515.3 | 22.8 | |
Cash flows from investing activities | ||||
Acquisitions of and investments in businesses, net of cash acquired | 0 | 0 | 0 | |
Proceeds from disposition of assets, net of cash sold | 334.5 | 0 | 0 | |
Proceeds received in advance of sale of business | 90 | |||
Additions to property, plant, and equipment | (8.8) | (11.6) | (6) | |
Other | 0 | |||
Net cash provided by (used in) investing activities | 415.7 | (11.6) | (6) | |
Cash flows from financing activities | ||||
Proceeds from issuance of long-term debt | 0 | 0 | 0 | |
Repayments of long-term debt | 0 | 0 | 0 | |
Issued preferred stock, warrants, and options proceeds, net of issuance costs | 0 | |||
Dividends paid | 0 | 0 | 0 | |
Purchases of Company stock | 0 | 0 | 0 | |
Proceeds from common stock issued | 0 | 0 | 0 | |
Excess tax benefits from share-based payments | 0 | |||
Payment of acquisition related contingent consideration | 0 | (1.1) | 0 | |
Debt acquisition costs | 0 | 0 | ||
Net increase (decrease) in intercompany obligations | (1,019.1) | (299.8) | (16.8) | |
Net cash provided by (used in) financing activities | (1,019.1) | (300.9) | (16.8) | |
Effect of exchange rate changes on cash and cash equivalents | 0 | 0 | ||
Change in cash held-for-sale | 0 | 0 | ||
Net increase (decrease) in cash and cash equivalents | (199.6) | 202.8 | 0 | |
Cash and cash equivalents at beginning of year | 202.8 | 0 | 0 | |
Cash and cash equivalents at end of year | 3.2 | 202.8 | 0 | |
Non-Guarantor Subsidiaries | ||||
Condensed Financial Statements, Captions [Line Items] | ||||
Cash flows from operating activities | (158.2) | 100 | (44.2) | |
Cash flows from investing activities | ||||
Acquisitions of and investments in businesses, net of cash acquired | 0 | 0 | 0 | |
Proceeds from disposition of assets, net of cash sold | 1.3 | 132.8 | 0 | |
Proceeds received in advance of sale of business | 0 | |||
Additions to property, plant, and equipment | (0.1) | (0.4) | 0 | |
Other | 0 | |||
Net cash provided by (used in) investing activities | 1.2 | 132.4 | 0 | |
Cash flows from financing activities | ||||
Proceeds from issuance of long-term debt | 0 | 0 | 15 | |
Repayments of long-term debt | 0 | (75.4) | (20) | |
Issued preferred stock, warrants, and options proceeds, net of issuance costs | 0 | |||
Dividends paid | 0 | 0 | 0 | |
Purchases of Company stock | 0 | 0 | 0 | |
Proceeds from common stock issued | 0 | 0 | 0 | |
Excess tax benefits from share-based payments | 0 | |||
Payment of acquisition related contingent consideration | 0 | 0 | 0 | |
Debt acquisition costs | 0 | 0 | ||
Net increase (decrease) in intercompany obligations | 127.3 | (82.3) | 48.9 | |
Net cash provided by (used in) financing activities | 127.3 | (157.7) | 43.9 | |
Effect of exchange rate changes on cash and cash equivalents | (1.4) | (4.1) | ||
Change in cash held-for-sale | 2.8 | (31.3) | ||
Net increase (decrease) in cash and cash equivalents | (28.3) | 39.3 | (0.3) | |
Cash and cash equivalents at beginning of year | 39.8 | 0.5 | 0.8 | |
Cash and cash equivalents at end of year | $ 11.5 | $ 39.8 | $ 0.5 |
Selected Quarterly Financial _3
Selected Quarterly Financial Data (unaudited) (Schedule of Quarterly Financial Information) (Details) - USD ($) $ / shares in Units, $ in Millions | 3 Months Ended | 12 Months Ended | |||||||||
Jun. 30, 2019 | Mar. 31, 2019 | Dec. 31, 2018 | Sep. 30, 2018 | Jun. 30, 2018 | Mar. 31, 2018 | Dec. 31, 2017 | Sep. 30, 2017 | Jun. 30, 2019 | Jun. 30, 2018 | Jun. 30, 2017 | |
Quarterly Financial Information [Line Items] | |||||||||||
Total revenues | $ 785.6 | $ 750.1 | $ 878.4 | $ 774.4 | $ 798.7 | $ 655 | $ 417.7 | $ 392.8 | $ 3,188.5 | $ 2,264.2 | $ 1,713.3 |
Operating profit | 23.5 | 75.6 | 133.7 | 54.2 | 66.5 | (72.5) | 36.7 | 56.2 | 287 | 86.9 | 308.2 |
Earnings (loss) from continuing operations | (3.6) | 28.4 | 88.1 | 16.2 | 16.6 | (95.4) | 159.4 | 33.4 | 129.1 | 114 | 188.9 |
Discontinued operations | (9.4) | (4.7) | (69.5) | 0.8 | 0.3 | (14.9) | 0 | 0 | (82.8) | (14.6) | 0 |
Net earnings (loss) | $ (13) | $ 23.7 | $ 18.6 | $ 17 | $ 16.9 | $ (110.3) | $ 159.4 | $ 33.4 | $ 46.3 | $ 99.4 | $ 188.9 |
Basic earnings (loss) per share attributable to common shareholders | |||||||||||
Earnings (loss) from continuing operations (in dollars per share) | $ (0.51) | $ 0.20 | $ 1.50 | $ (0.07) | $ (0.06) | $ (2.41) | $ 3.55 | $ 0.75 | $ 1.12 | $ 1.80 | $ 4.23 |
Net earnings (loss) (in dollars per share) | (0.72) | 0.10 | (0.03) | (0.06) | (0.06) | (2.74) | 3.55 | 0.75 | (0.71) | 1.48 | 4.23 |
Diluted earnings (loss) per share attributable to common shareholders | |||||||||||
Earnings (loss) from continuing operations (in dollars per share) | (0.51) | 0.20 | 1.46 | (0.07) | (0.06) | (2.41) | 3.49 | 0.73 | 1.12 | 1.79 | 4.16 |
Net earnings (loss) (in dollars per share) | (0.72) | 0.10 | (0.01) | (0.06) | (0.06) | (2.74) | 3.49 | 0.73 | (0.70) | 1.47 | $ 4.16 |
Dividends per share (in dollars per share) | $ 0.575 | $ 0.575 | $ 0.545 | $ 0.545 | $ 0.545 | $ 0.545 | $ 0.520 | $ 0.520 | $ 2.240 | $ 2.130 | |
Operating segments | |||||||||||
Quarterly Financial Information [Line Items] | |||||||||||
Total revenues | $ 3,190.4 | $ 2,265.7 | $ 1,713.3 | ||||||||
Operating segments | National Media | |||||||||||
Quarterly Financial Information [Line Items] | |||||||||||
Total revenues | $ 587.5 | $ 562.3 | $ 616.2 | $ 560.6 | $ 600.6 | $ 485.6 | $ 247.4 | $ 239 | 2,326.6 | 1,572.6 | 1,083.2 |
Operating profit | 6.4 | 54.5 | 47 | 18.1 | 41.4 | 4.5 | 11.6 | 27.5 | 126 | 85 | 146.4 |
Operating segments | Local Media | |||||||||||
Quarterly Financial Information [Line Items] | |||||||||||
Total revenues | 198.6 | 188.4 | 262.4 | 214.4 | 198.9 | 170.1 | 170.3 | 153.8 | 863.8 | 693.1 | 630.1 |
Operating profit | 62.6 | 41.6 | 106.6 | 67.5 | 58.2 | 38.3 | 49.9 | 40.3 | 278.3 | 186.7 | 211.6 |
Intersegment Elimination | |||||||||||
Quarterly Financial Information [Line Items] | |||||||||||
Total revenues | (0.5) | (0.6) | (0.2) | (0.6) | (0.8) | (0.7) | 0 | 0 | (1.9) | (1.5) | 0 |
Unallocated corporate | |||||||||||
Quarterly Financial Information [Line Items] | |||||||||||
Operating profit | $ (45.5) | $ (20.5) | $ (19.9) | $ (31.4) | $ (33.1) | $ (115.3) | $ (24.8) | $ (11.6) | $ (117.3) | $ (184.8) | $ (49.8) |
Selected Quarterly Financial _4
Selected Quarterly Financial Data (unaudited) (Narrative) (Details) - USD ($) $ in Millions | 1 Months Ended | 3 Months Ended | 12 Months Ended | |||||||||
May 31, 2018 | Jun. 30, 2019 | Mar. 31, 2019 | Dec. 31, 2018 | Sep. 30, 2018 | Jun. 30, 2018 | Mar. 31, 2018 | Dec. 31, 2017 | Jun. 30, 2019 | Jun. 30, 2018 | Jun. 30, 2017 | Jul. 01, 2017 | |
Quarterly Financial Information [Line Items] | ||||||||||||
Acquisition related costs | $ 39.3 | $ 16.8 | $ 27.7 | $ 23.4 | $ 31.1 | $ 153 | $ 12.1 | $ 0.1 | $ 0.3 | |||
Loss on extinguishment of debt | $ 9.8 | $ 18.4 | $ 0 | 0 | ||||||||
Restructuring charges | 3.1 | $ 12.4 | ||||||||||
Loss on an equity method investment | $ 12.9 | |||||||||||
Disposal group, disposed of by sale, not discontinued operations | Charleston Tennis LLC | ||||||||||||
Quarterly Financial Information [Line Items] | ||||||||||||
Ownership percentage | 30.00% | |||||||||||
Disposal group, disposed of by sale, not discontinued operations | MXM | ||||||||||||
Quarterly Financial Information [Line Items] | ||||||||||||
Gain on disposal | $ 10.4 | 11.5 | ||||||||||
Trademarks | ||||||||||||
Quarterly Financial Information [Line Items] | ||||||||||||
Impairment of indefinite lived intangible assets | $ 41.8 | $ 41.8 | $ 2.9 | $ 19.8 | $ 22.7 |
Schedule II - Valuation and Q_2
Schedule II - Valuation and Qualifying Accounts (Details) - USD ($) $ in Millions | 12 Months Ended | ||
Jun. 30, 2019 | Jun. 30, 2018 | Jun. 30, 2017 | |
SEC Schedule, 12-09, Movement in Valuation Allowances and Reserves [Roll Forward] | |||
Balance at beginning of period | $ 35.5 | $ 8 | $ 8.3 |
Acquired | 0 | 21.4 | 0 |
Charged to costs and expenses | 14.2 | 15.6 | 8.5 |
Charged to other accounts | 3.4 | 0 | 0 |
Deductions | (10.9) | (9.5) | (8.8) |
Balance at end of period | 42.2 | 35.5 | 8 |
Reserve for doubtful accounts | |||
SEC Schedule, 12-09, Movement in Valuation Allowances and Reserves [Roll Forward] | |||
Balance at beginning of period | 12.2 | 6.5 | 7 |
Acquired | 0 | 0 | 0 |
Charged to costs and expenses | 4.8 | 12.5 | 4.5 |
Charged to other accounts | 0 | 0 | 0 |
Deductions | (1.6) | (6.8) | (5) |
Balance at end of period | 15.4 | 12.2 | 6.5 |
Reserve for returns | |||
SEC Schedule, 12-09, Movement in Valuation Allowances and Reserves [Roll Forward] | |||
Balance at beginning of period | 2.2 | 1.5 | 1.3 |
Acquired | 0 | 0 | 0 |
Charged to costs and expenses | 8.8 | 3.1 | 4 |
Charged to other accounts | 3.4 | 0 | 0 |
Deductions | (9.3) | (2.4) | (3.8) |
Balance at end of period | 5.1 | 2.2 | 1.5 |
Income tax valuation allowance | |||
SEC Schedule, 12-09, Movement in Valuation Allowances and Reserves [Roll Forward] | |||
Balance at beginning of period | 21.1 | 0 | |
Acquired | 0 | 21.4 | |
Charged to costs and expenses | 0.6 | 0 | |
Charged to other accounts | 0 | 0 | |
Deductions | 0 | (0.3) | |
Balance at end of period | $ 21.7 | $ 21.1 | $ 0 |
Uncategorized Items - fy19q4jun
Label | Element | Value |
Cumulative Effect of New Accounting Principle in Period of Adoption | us-gaap_CumulativeEffectOfNewAccountingPrincipleInPeriodOfAdoption | $ 2,400,000 |
Cumulative Effect of New Accounting Principle in Period of Adoption | us-gaap_CumulativeEffectOfNewAccountingPrincipleInPeriodOfAdoption | 500,000 |
Retained Earnings [Member] | ||
Cumulative Effect of New Accounting Principle in Period of Adoption | us-gaap_CumulativeEffectOfNewAccountingPrincipleInPeriodOfAdoption | 2,400,000 |
Cumulative Effect of New Accounting Principle in Period of Adoption | us-gaap_CumulativeEffectOfNewAccountingPrincipleInPeriodOfAdoption | (600,000) |
Additional Paid-in Capital [Member] | ||
Cumulative Effect of New Accounting Principle in Period of Adoption | us-gaap_CumulativeEffectOfNewAccountingPrincipleInPeriodOfAdoption | $ 1,100,000 |