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20190930 Q3

Table of Contents

 

UNITED STATES SECURITIES AND EXCHANGE COMMISSION

Washington, D.C. 20549





Form 10-Q





QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934

For the quarterly period ended: September 30, 2019 

OR

TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934

Commission file no. 1-33741





Picture 1



A. H. Belo Corporation

(Exact name of registrant as specified in its charter)







 

 

Texas

 

38-3765318

(State or other jurisdiction of incorporation or organization)

 

(I.R.S. Employer Identification No.)

 

 

P. O. Box 224866, Dallas, Texas 75222-4866

 

(214) 977-8222

(Address of principal executive offices, including zip code)

 

(Registrant’s telephone number, including area code)

Former name, former address and former fiscal year, if changed since last report.

None



Securities registered pursuant to Section 12(b) of the Act:



 

 

 

 



 

 

 

 



 

 

 

 

Title of each class

 

Trading Symbol

 

Name of each exchange on which registered

Series A Common Stock, $.01 par value

 

AHC

 

New York Stock Exchange



Indicate by check mark whether registrant (1) has filed all reports required to be filed by Section 13 or 15(d) of the Securities Exchange Act of 1934 during the preceding 12 months (or for such shorter period that the registrant was required to file such reports), and (2) has been subject to such filing requirements for the past 90 days.     Yes      No  



Indicate by check mark whether the registrant has submitted electronically every Interactive Data File required to be submitted pursuant to Rule 405 of Regulation S-T (§ 232.405 of this chapter) during the preceding 12 months (or for such shorter period that the registrant was required to submit such files).     Yes      No  



Indicate by check mark whether the registrant is a large accelerated filer, an accelerated filer, a non-accelerated filer, smaller reporting company, or an emerging growth company. See the definitions of “large accelerated filer,” “accelerated filer,” “smaller reporting company,” and “emerging growth company” in Rule 12b-2 of the Exchange Act.:





 

 

 

 

 

 

Large accelerated filer:  

 

Accelerated filer:  

 

Non-accelerated filer:  

 

Smaller reporting company:  

 

Emerging growth company  



If an emerging growth company, indicate by check mark if the registrant has elected not to use the extended transition period for complying with any new or revised financial accounting standards provided pursuant to Section 13(a) of the Exchange Act. 



Indicate by check mark whether the registrant is a shell company (as defined in Rule 12b-2 of the Act).      Yes      No 



Shares of Common Stock outstanding at April 6, 2020: 21,410,423 shares (consisting of 18,941,340 shares of Series A Common Stock and 2,469,083 shares of Series B Common Stock).

 

 


 

Table of Contents

 



Explanatory Note



On March 18, 2020, the Company filed an Amendment No. 1 on Form 10-K/A (the “Form 10-K/A”) to amend the Form 10-K filed with the Securities and Exchange Commission (the “SEC”) on March 14, 2019, for the fiscal year ended December 31, 2018. The Form 10-K/A was filed in order to reflect the appropriate timing of the noncash impairment charge for goodwill and long-lived assets associated with the Company’s Marketing Services reporting unit and the appropriate methodology for calculation of the valuation allowance within the tax provision for 2018.



On March 27, 2020, the Company filed an Amendment No. 1 on Form 10-Q/A to amend the Form 10-Q filed with the SEC on April 29, 2019, for the quarter ended March 31, 2019. On April 6, 2020, the Company filed an Amendment No. 1 on Form 10-Q/A to amend the Form 10-Q filed with the SEC on July 29, 2019, for the quarter ended June 30, 2019.

A. H. Belo Corporation Third Quarter 2019 on Form 10-Q


 

Table of Contents

 

A. H. BELO CORPORATION



FORM 10-Q



TABLE OF CONTENTS





 

 

 





 

 

 

 

 

Page

PART I

Item 1.

Financial Information

 

PAGE    4

Item 2.

Management’s Discussion and Analysis of Financial Condition and Results of Operations

 

PAGE 20

Item 3.

Quantitative and Qualitative Disclosures about Market Risk

 

PAGE 26

Item 4.

Controls and Procedures

 

PAGE 26

 

 

 

 

PART II 

 

 

Item 1.

Legal Proceedings

 

PAGE 28

Item 1A.

Risk Factors

 

PAGE 28

Item 2.

Unregistered Sales of Equity Securities and Use of Proceeds

 

PAGE 28

Item 3.

Defaults Upon Senior Securities

 

PAGE 28

Item 4.

Mine Safety Disclosures

 

PAGE 28

Item 5.

Other Information

 

PAGE 28

Item 6.

Exhibits

 

PAGE 29

Signatures

 

PAGE 32

Exhibit Index

 

PAGE 33



 

A. H. Belo Corporation Third Quarter 2019 on Form 10-Q


 

Table of Contents

 



PART I

Item 1.  Financial Information



A. H. Belo Corporation and Subsidiaries

Consolidated Statements of Operations





 

 

 

 

 

 

 

 

 

 

 

 



 

 

 

 

 

 

 

 

 

 

 

 



 

Three Months Ended September 30,

 

Nine Months Ended September 30,

In thousands, except share and per share amounts (unaudited)

 

2019

 

2018

 

2019

 

2018

Net Operating Revenue:

 

 

 

 

 

 

 

 

 

 

 

 

Advertising and marketing services

 

$

21,616 

 

$

25,260 

 

$

70,957 

 

$

77,398 

Circulation

 

 

16,809 

 

 

17,896 

 

 

51,095 

 

 

53,564 

Printing, distribution and other

 

 

4,632 

 

 

5,896 

 

 

14,709 

 

 

18,712 

Total net operating revenue

 

 

43,057 

 

 

49,052 

 

 

136,761 

 

 

149,674 

Operating Costs and Expense:

 

 

 

 

 

 

 

 

 

 

 

 

Employee compensation and benefits

 

 

19,504 

 

 

21,174 

 

 

60,456 

 

 

67,375 

Other production, distribution and operating costs

 

 

21,171 

 

 

20,939 

 

 

67,200 

 

 

66,786 

Newsprint, ink and other supplies

 

 

3,972 

 

 

5,528 

 

 

12,741 

 

 

16,300 

Depreciation

 

 

2,289 

 

 

2,514 

 

 

7,008 

 

 

7,522 

Amortization

 

 

140 

 

 

199 

 

 

356 

 

 

599 

(Gain) loss on sale/disposal of assets, net

 

 

1,362 

 

 

 —

 

 

(24,546)

 

 

 —

Asset impairments

 

 

1,593 

 

 

 —

 

 

1,593 

 

 

(22)

Total operating costs and expense

 

 

50,031 

 

 

50,354 

 

 

124,808 

 

 

158,560 

Operating income (loss)

 

 

(6,974)

 

 

(1,302)

 

 

11,953 

 

 

(8,886)

Other income, net

 

 

1,161 

 

 

862 

 

 

3,123 

 

 

2,641 

Income (Loss) Before Income Taxes

 

 

(5,813)

 

 

(440)

 

 

15,076 

 

 

(6,245)

Income tax provision (benefit)

 

 

(1,808)

 

 

596 

 

 

4,688 

 

 

(661)

Net Income (Loss)

 

$

(4,005)

 

$

(1,036)

 

$

10,388 

 

$

(5,584)



 

 

 

 

 

 

 

 

 

 

 

 

Per Share Basis

 

 

 

 

 

 

 

 

 

 

 

 

Net income (loss)

 

 

 

 

 

 

 

 

 

 

 

 

Basic and diluted

 

$

(0.19)

 

$

(0.05)

 

$

0.48 

 

$

(0.26)

Number of common shares used in the per share calculation:

 

 

 

 

 

 

 

 

 

 

 

 

Basic and diluted

 

 

21,476,029 

 

 

21,709,557 

 

 

21,553,625 

 

 

21,761,110 



See the accompanying Notes to the Consolidated Financial Statements.

 

A. H. Belo Corporation Third Quarter 2019 on Form 10-Q     4


 

Table of Contents

 

A. H. Belo Corporation and Subsidiaries

Consolidated Statements of Comprehensive Income (Loss)



 

 

 

 

 

 

 

 

 

 

 

 



 

 

 

 

 

 

 

 

 

 

 

 



 

Three Months Ended September 30,

 

Nine Months Ended September 30,

In thousands (unaudited)

 

2019

 

2018

 

2019

 

2018

Net Income (Loss)

 

$

(4,005)

 

$

(1,036)

 

$

10,388 

 

$

(5,584)

Other Comprehensive Income (Loss), Net of Tax:

 

 

 

 

 

 

 

 

 

 

 

 

Amortization of actuarial losses

 

 

63 

 

 

158 

 

 

188 

 

 

473 

Total other comprehensive income, net of tax

 

 

63 

 

 

158 

 

 

188 

 

 

473 

Total Comprehensive Income (Loss)

 

$

(3,942)

 

$

(878)

 

$

10,576 

 

$

(5,111)



See the accompanying Notes to the Consolidated Financial Statements.

 

A. H. Belo Corporation Third Quarter 2019 on Form 10-Q     5


 

Table of Contents

 

A. H. Belo Corporation and Subsidiaries

Consolidated Balance Sheets







 

 

 

 

 

 

  

 

 

 

 

 

 



 

September 30,

 

December 31,

In thousands, except share amounts (unaudited)

 

2019

 

2018



 

 

 

 

 

(Restated)

Assets

 

 

 

 

 

 

Current assets:

 

 

 

 

 

 

Cash and cash equivalents

 

$

53,249 

 

$

55,313 

Accounts receivable (net of allowance of $814 and $581 at September 30, 2019
and December 31, 2018, respectively)

 

 

16,895 

 

 

22,057 

Inventories

 

 

2,614 

 

 

3,912 

Prepaids and other current assets

 

 

5,470 

 

 

5,023 

Assets held for sale

 

 

 —

 

 

1,089 

Total current assets

 

 

78,228 

 

 

87,394 

Property, plant and equipment, at cost

 

 

381,662 

 

 

422,966 

Less accumulated depreciation

 

 

(362,425)

 

 

(396,705)

Property, plant and equipment, net

 

 

19,237 

 

 

26,261 

Operating lease right-of-use assets

 

 

22,119 

 

 

 —

Intangible assets, net

 

 

458 

 

 

304 

Deferred income taxes, net

 

 

 —

 

 

3,572 

Long-term note receivable

 

 

22,400 

 

 

 —

Other assets

 

 

3,178 

 

 

5,029 

Total assets

 

$

145,620 

 

$

122,560 

Liabilities and Shareholders’ Equity

 

 

 

 

 

 

Current liabilities:

 

 

 

 

 

 

Accounts payable

 

$

5,868 

 

$

6,334 

Accrued compensation and benefits

 

 

7,933 

 

 

8,294 

Other accrued expense

 

 

6,836 

 

 

5,586 

Advance subscription payments

 

 

11,349 

 

 

11,449 

Total current liabilities

 

 

31,986 

 

 

31,663 

Long-term pension liabilities

 

 

29,213 

 

 

31,889 

Long-term operating lease liabilities

 

 

23,598 

 

 

 —

Other post-employment benefits

 

 

1,153 

 

 

1,165 

Deferred income taxes, net

 

 

246 

 

 

 —

Other liabilities

 

 

3,917 

 

 

7,045 

Total liabilities

 

 

90,113 

 

 

71,762 

Shareholders’ equity:

 

 

 

 

 

 

Preferred stock, $.01 par value; Authorized 2,000,000 shares; none issued

 

 

 —

 

 

 —

Common stock, $.01 par value; Authorized 125,000,000 shares

 

 

 

 

 

 

Series A: issued 20,854,935 and 20,854,728 shares at September 30, 2019
and December 31, 2018, respectively

 

 

209 

 

 

209 

Series B: issued 2,469,348 and 2,469,555 shares at September 30, 2019
and December 31, 2018, respectively

 

 

24 

 

 

24 

Treasury stock, Series A, at cost; 1,880,828 and 1,697,370 shares held at September 30, 2019 and December 31, 2018, respectively

 

 

(13,320)

 

 

(12,601)

Additional paid-in capital

 

 

494,389 

 

 

494,389 

Accumulated other comprehensive loss

 

 

(37,453)

 

 

(37,641)

Accumulated deficit

 

 

(388,342)

 

 

(393,582)

Total shareholders’ equity

 

 

55,507 

 

 

50,798 

Total liabilities and shareholders’ equity

 

$

145,620 

 

$

122,560 



See the accompanying Notes to the Consolidated Financial Statements.

A. H. Belo Corporation Third Quarter 2019 on Form 10-Q     6


 

Table of Contents

 

A. H. Belo Corporation and Subsidiaries

Consolidated Statements of Shareholders’ Equity





 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 



 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 



Nine Months Ended September 30, 2019 and 2018



Common Stock

 

 

 

Treasury Stock

 

 

 

 

 

 

In thousands, except share amounts  (unaudited)

Shares   
Series A

Shares
Series B

Amount

Additional
Paid-in
Capital

 

Shares
Series A

Amount

Accumulated
Other
Comprehensive
Loss

Accumulated
Deficit

Total

Balance at December 31, 2017

20,700,292 

2,469,755 

$

232 

$

494,989 

 

(1,430,961)

$

(11,302)

$

(24,932)

$

(361,288)

$

97,699 

Net loss

 —

 —

 

 —

 

 —

 

 —

 

 —

 

 —

 

(5,584)

 

(5,584)

Other comprehensive income

 —

 —

 

 —

 

 —

 

 —

 

 —

 

473

 

 —

 

473

Shares repurchased

 —

 —

 

 —

 

 —

 

(210,964)

 

(1,056)

 

 —

 

 —

 

(1,056)

Issuance of shares for restricted stock units

151,236 

 —

 

 

(1)

 

 —

 

 —

 

 —

 

 —

 

 —

Share-based compensation

 —

 —

 

 —

 

854

 

 —

 

 —

 

 —

 

 —

 

854

Conversion of Series B to Series A

200

(200)

 

 —

 

 —

 

 —

 

 —

 

 —

 

 —

 

 —

Dividends declared ($0.24 per share)

 —

 —

 

 —

 

 —

 

 —

 

 —

 

 —

 

(5,345)

 

(5,345)

Balance at September 30, 2018

20,851,728

2,469,555

$

233 

$

495,842

 

(1,641,925)

$

(12,358)

$

(24,459)

$

(372,217)

$

87,041

Balance at December 31, 2018 (Restated)

20,854,728 

2,469,555 

$

233 

$

494,389 

 

(1,697,370)

$

(12,601)

$

(37,641)

$

(393,582)

$

50,798

Net income

 —

 —

 

 —

 

 —

 

 —

 

 —

 

 —

 

10,388

 

10,388

Other comprehensive income

 —

 —

 

 —

 

 —

 

 —

 

 —

 

188

 

 —

 

188

Shares repurchased

 —

 —

 

 —

 

 —

 

(183,458)

 

(719)

 

 —

 

 —

 

(719)

Conversion of Series B to Series A

207

(207)

 

 —

 

 —

 

 —

 

 —

 

 —

 

 —

 

 —

Dividends declared ($0.24 per share)

 —

 —

 

 —

 

 —

 

 —

 

 —

 

 —

 

(5,148)

 

(5,148)

Balance at September 30, 2019

20,854,935

2,469,348

$

233 

$

494,389 

 

(1,880,828)

$

(13,320)

$

(37,453)

$

(388,342)

$

55,507









 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 



 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 



Three Months Ended September 30, 2019 and 2018



Common Stock

 

 

 

Treasury Stock

 

 

 

 

 

 

In thousands, except share amounts  (unaudited)

Shares   
Series A

Shares
Series B

Amount

Additional
Paid-in
Capital

 

Shares
Series A

Amount

Accumulated
Other
Comprehensive
Loss

Accumulated
Deficit

Total

Balance at June 30, 2018

20,851,648 

2,469,635 

$

233 

$

495,708 

 

(1,591,141)

$

(12,127)

$

(24,617)

$

(369,400)

$

89,797 

Net loss

 —

 —

 

 —

 

 —

 

 —

 

 —

 

 —

 

(1,036)

 

(1,036)

Other comprehensive income

 —

 —

 

 —

 

 —

 

 —

 

 —

 

158 

 

 —

 

158 

Shares repurchased

 —

 —

 

 —

 

 —

 

(50,784)

 

(231)

 

 —

 

 —

 

(231)

Issuance of shares for restricted stock units

 —

 —

 

 —

 

 —

 

 —

 

 —

 

 —

 

 —

 

 —

Share-based compensation

 —

 —

 

 —

 

134 

 

 —

 

 —

 

 —

 

 —

 

134 

Conversion of Series B to Series A

80 

(80)

 

 —

 

 —

 

 —

 

 —

 

 —

 

 —

 

 —

Dividends declared ($0.08 per share)

 —

 —

 

 —

 

 —

 

 —

 

 —

 

 —

 

(1,781)

 

(1,781)

Balance at September 30, 2018

20,851,728 

2,469,555 

$

233 

$

495,842 

 

(1,641,925)

$

(12,358)

$

(24,459)

$

(372,217)

$

87,041 

Balance at June 30, 2019 (Restated)

20,854,771 

2,469,512 

$

233 

$

494,389 

 

(1,828,983)

$

(13,128)

$

(37,516)

$

(382,625)

$

61,353 

Net loss

 —

 —

 

 —

 

 —

 

 —

 

 —

 

 —

 

(4,005)

 

(4,005)

Other comprehensive income

 —

 —

 

 —

 

 —

 

 —

 

 —

 

63 

 

 —

 

63 

Shares repurchased

 —

 —

 

 —

 

 —

 

(51,845)

 

(192)

 

 —

 

 —

 

(192)

Conversion of Series B to Series A

164 

(164)

 

 —

 

 —

 

 —

 

 —

 

 —

 

 —

 

 —

Dividends declared ($0.08 per share)

 —

 —

 

 —

 

 —

 

 —

 

 —

 

 —

 

(1,712)

 

(1,712)

Balance at September 30, 2019

20,854,935 

2,469,348 

$

233 

$

494,389 

 

(1,880,828)

$

(13,320)

$

(37,453)

$

(388,342)

$

55,507 



See the accompanying Notes to the Consolidated Financial Statements.

 

A. H. Belo Corporation Third Quarter 2019 on Form 10-Q     7


 

Table of Contents

 

A. H. Belo Corporation and Subsidiaries

Consolidated Statements of Cash Flows







 

 

 

 

 

 



 

 

 

 

 

 



 

Nine Months Ended September 30,

In thousands (unaudited)

 

2019

 

2018

Operating Activities

 

 

 

 

 

 

Net income (loss)

 

$

10,388 

 

$

(5,584)

Adjustments to reconcile net income (loss) to net cash provided by operating activities:

 

 

 

 

 

 

Depreciation and amortization

 

 

7,364 

 

 

8,121 

Net periodic pension and other post-employment benefit

 

 

(2,455)

 

 

(2,791)

Share-based compensation

 

 

 —

 

 

854 

Bad debt expense

 

 

710 

 

 

471 

Deferred income taxes

 

 

3,818 

 

 

(1,324)

(Gain) loss on sale/disposal of assets, net

 

 

(24,546)

 

 

212 

Asset impairments

 

 

1,593 

 

 

(22)

Changes in working capital and other operating assets and liabilities, net of acquisitions:

 

 

 

 

 

 

Accounts receivable

 

 

5,189 

 

 

6,510 

Inventories, prepaids and other current assets

 

 

851 

 

 

6,081 

Other assets

 

 

1,851 

 

 

1,224 

Accounts payable

 

 

(928)

 

 

(3,239)

Compensation and benefit obligations

 

 

(1,054)

 

 

(1,872)

Other accrued expenses

 

 

150 

 

 

4,396 

Advance subscription payments

 

 

(101)

 

 

(575)

Other post-employment benefits

 

 

(45)

 

 

(915)

Net cash provided by operating activities

 

 

2,785 

 

 

11,547 

Investing Activities

 

 

 

 

 

 

Purchases of assets

 

 

(1,207)

 

 

(4,344)

Sales of assets

 

 

4,597 

 

 

 —

Acquisitions, net of cash acquired

 

 

(2,356)

 

 

 —

Net cash provided by (used for) investing activities

 

 

1,034 

 

 

(4,344)

Financing Activities

 

 

 

 

 

 

Dividends paid

 

 

(5,164)

 

 

(5,336)

Shares repurchased

 

 

(719)

 

 

(1,056)

Net cash used for financing activities

 

 

(5,883)

 

 

(6,392)

Net increase (decrease) in cash and cash equivalents

 

 

(2,064)

 

 

811 

Cash and cash equivalents, beginning of period

 

 

55,313 

 

 

57,660 

Cash and cash equivalents, end of period

 

$

53,249 

 

$

58,471 



 

 

 

 

 

 

Supplemental Disclosures

 

 

 

 

 

 

Income tax paid, net (refund)

 

$

897 

 

$

(6,408)

Noncash investing and financing activities:

 

 

 

 

 

 

Investments in property, plant and equipment payable

 

 

245 

 

 

97 

Dividends payable

 

 

1,715 

 

 

1,783 

Long-term note receivable for asset sales

 

 

22,400 

 

 

 —



See the accompanying Notes to the Consolidated Financial Statements.

 



 

A. H. Belo Corporation Third Quarter 2019 on Form 10-Q     8


 

Table of Contents

 

A. H. Belo Corporation and Subsidiaries

Notes to the Consolidated Financial Statements

 



Note 1:  Basis of Presentation and Recently Issued Accounting Standards



Description of Business.    A. H. Belo Corporation and subsidiaries are referred to collectively herein as “A. H. Belo” or the “Company.” The Company, headquartered in Dallas, Texas, is the leading local news and information publishing company in Texas. The Company has commercial printing, distribution and direct mail capabilities, as well as a presence in emerging media and digital marketing. While focusing on extending the Company’s media platforms, A. H. Belo delivers news and information in innovative ways to a broad range of audiences with diverse interests and lifestyles. The Company publishes The Dallas Morning News  (www.dallasnews.com), Texas’ leading newspaper and winner of nine Pulitzer Prizes, and various niche publications targeting specific audiences.



Basis of Presentation.     The interim consolidated financial statements included herein are unaudited; however, they include adjustments of a normal recurring nature which, in the Company’s opinion, are necessary to present fairly the interim consolidated financial information as of and for the periods indicated. All intercompany balances and transactions have been eliminated in consolidation. These financial statements should be read in conjunction with the consolidated financial statements and notes thereto included in the Company’s Annual Report on Form 10-K/A for the fiscal year ended December 31, 2018. All dollar amounts presented herein, except share and per share amounts, are in thousands, unless the context indicates otherwise.



The preparation of financial statements in conformity with accounting principles generally accepted in the United States of America (“GAAP”) requires management to make estimates and assumptions that affect (i) the reported amounts of assets and liabilities, (ii) the disclosure of contingent assets and liabilities known to exist as of the date the financial statements are published, and (iii) the reported amount of net operating revenues and expenses recognized during the periods presented. Adjustments made with respect to the use of estimates often relate to improved information not previously available. Uncertainties with respect to such estimates and assumptions are inherent in the preparation of financial statements; accordingly, actual results could differ from these estimates.



Recently Adopted Accounting Pronouncements.



In February 2016, the Financial Accounting Standards Board (“FASB”) issued Accounting Standards Update (“ASU”) 2016-02 – Leases (Topic 842). This update requires an entity to recognize a right-of-use asset and a lease liability for virtually all of its leases. The liability will be equal to the present value of lease payments. The asset will generally be based on the liability. For income statement purposes operating leases will result in straight-line expense and finance leases will result in expenses similar to current capital leases. The guidance also requires additional disclosures to enable users of financial statements to understand the amount, timing and uncertainty of cash flows arising from leases. Since February 2016, the FASB issued clarifying updates to the new standard that did not change the core principle of ASU 2016-02. The new guidance will supersede virtually all existing lease guidance under GAAP and is effective for fiscal years beginning after December 15, 2018, including interim periods within those fiscal years. The Company adopted ASU 2016-02 on January 1, 2019, using the modified retrospective approach; see Note 5 – Leases.  



New Accounting Pronouncements.    The FASB issued the following accounting pronouncements and guidance, which may be applicable to the Company but have not yet become effective.



In June 2016, the FASB issued ASU 2016-13 – Financial Instruments – Credit Losses (Topic 326): Measurement of Credit Losses on Financial Instruments. This update requires financial assets measured at amortized cost basis to be presented at the net amount expected to be collected. The measurement of expected credit losses is based on relevant information about past events, including historical experience, current conditions, and reasonable and supportable forecasts that affect the collectibility of the reported amount. Since June 2016, the FASB issued clarifying updates to the new standard including changing the effective date for smaller reporting companies. The guidance will be effective for fiscal years beginning after December 15, 2022, and interim periods within those fiscal years. Early adoption is permitted. The Company is currently evaluating the requirements of this update and has not yet determined its impact on the Company’s consolidated financial statements.



In August 2018, the FASB issued ASU 2018-14 – Compensation – Retirement Benefits – Defined Benefit Plans – General (Subtopic 715-20): Disclosure Framework Changes to the Disclosure Requirements for Defined Benefit Plans. This update modifies the annual disclosure requirements for employers that sponsor defined benefit pension or other postretirement plans by removing disclosures that are no longer considered cost beneficial, clarifying the specific requirements of disclosures and adding disclosure requirements identified as relevant. The guidance will be effective for fiscal years ending after December 15, 2020. Early adoption is permitted. The Company is currently evaluating the requirements of this update, but does not expect a material impact on the Company’s consolidated financial statements and related disclosures.

A. H. Belo Corporation Third Quarter 2019 on Form 10-Q     9


 

Table of Contents

 

In August 2018, the FASB issued ASU 2018-15 – Intangibles – Goodwill and Other – Internal-Use Software (Subtopic 350-40): Customer’s Accounting for Implementation Costs Incurred in a Cloud Computing Arrangement That is a Service Contract. This update clarifies the accounting for implementation costs incurred in a cloud computing arrangement, or hosting arrangement, that is a service contract. Costs for implementation activities incurred during the application development stage will be capitalized depending on the nature of the costs, while costs incurred during the preliminary project and post implementation stages will be expensed as the activities are performed. The capitalized implementation costs will be expensed over the term of the hosting arrangement. The guidance will be effective for fiscal years beginning after December 15, 2019, and interim periods within those fiscal years. Early adoption is permitted. The Company currently anticipates adopting this standard prospectively as of January 1, 2020, and does not expect a material impact on the Company’s consolidated financial statements.



Note 2:  Segment Reporting



Based on the Company’s structure and organizational chart, the Company’s chief operating decision-maker (the “CODM”) is its Chief Executive Officer, Robert W. Decherd.



In the third quarter of 2019, in conjunction with a strategic change to a single decision-making reporting structure and based on how the Company’s CODM makes decisions about allocating resources and assessing performance, the Company determined it has one reportable segment. Prior to the third quarter, the Company had two reportable segments, Publishing and Marketing Services, that each operated as a single reporting unit with all corporate expenses included in Publishing. Historical financial information by segment has been recast and reported as one segment. See Note 4 – Revenue for disaggregated revenue by source.  







Note 3:  Acquisitions



On April 1, 2019, the Company completed the acquisition of certain assets of Cubic, Inc. for a cash purchase price of $2,356, net of $213 cash acquired. Transaction costs related to the purchase were a component of other production, distribution and operating costs in the Consolidated Statements of Operations and totaled $92, of which $0 and $86 were incurred in the three and nine months ended September 30, 2019, respectively.



The new entity Cubic Creative, Inc. (“Cubic Creative”) is located in Tulsa, Oklahoma and has approximately 25 employees. This acquisition adds creative strategy services, which complement service offerings currently available to A. H. Belo clients. The expected benefit from providing these additional services was attributed to goodwill, all of which is expected to be deductible for tax purposes. In the third quarter of 2019, the goodwill recorded as a result of this acquisition was fully impaired; see Note 6 – Goodwill and Intangible Assets.



The table below sets forth the finalized allocation of the purchase price.





 

 

 



 

 

 



 

 

Estimated
Fair Value

Working capital, net of acquired cash

 

$

228 

Property, plant and equipment

 

 

25 

Other intangible assets

 

 

510 

Goodwill

 

 

1,593 

Total

 

$

2,356 



Operating results of the business acquired have been included in the Consolidated Statements of Operations from the acquisition date forward. Pro forma results of the Company, assuming the acquisition had occurred at the beginning of each period presented, would not be materially different from the results reported.

A. H. Belo Corporation Third Quarter 2019 on Form 10-Q     10


 

Table of Contents

 





Note 4:  Revenue



Revenue Recognition



Revenue is recognized when obligations under the terms of a contract with our customer are satisfied. This occurs when control of the promised goods or services is transferred to our customers, in an amount that reflects the consideration we expect to be entitled to in exchange for those goods or services. Sales tax collected concurrent with revenue-producing activities are excluded from revenue.



Accounts receivable are reported net of a valuation reserve that represents an estimate of amounts considered uncollectible. The Company estimates the allowance for doubtful accounts based on historical write-off experience and the Company’s knowledge of the customers’ ability to pay amounts due. Accounts are written-off after all collection efforts fail; generally, after one year has expired. Expense for such uncollectible amounts is included in other production, distribution and operating costs.



Notes receivable are recorded net of an allowance for doubtful accounts. Notes receivable primarily relates to the financed portion of the sale of the Company’s former headquarters (see Note 13 – Disposal of Assets). Interest income is accrued on the unpaid principal balance. The Company puts notes receivable on non-accrual status and provides an allowance against accrued interest if it is determined the likelihood of collecting substantially all of the note and accrued interest is not probable. Notes are written-off against the allowance when all possible means of collection have been exhausted and the potential for recovery is considered remote.



The table below sets forth revenue disaggregated by revenue source. Due to the third quarter 2019 change to a single decision-making reporting structure (see Note 2 – Segment Reporting), the Company determined that disaggregating revenue by print and digital products best aligned with the new Company structure. The 2018 amounts were recast for comparative purposes.





 

 

 

 

 

 

 

 

 

 

 

 



 

 

 

 

 

 

 

 

 

 

 

 



 

Three Months Ended September 30,

 

Nine Months Ended September 30,



 

2019

 

2018

 

2019

 

2018



 

 

 

 

(Recast)

 

 

 

 

(Recast)

Advertising and Marketing Services

 

 

 

 

 

 

 

 

 

 

 

 

Print advertising

 

$

13,878 

 

$

16,502 

 

$

45,434 

 

$

50,664 

Digital advertising and marketing services

 

 

7,738 

 

 

8,758 

 

 

25,523 

 

 

26,734 

Total

$

21,616 

 

$

25,260 

 

$

70,957 

 

$

77,398 



 

 

 

 

 

 

 

 

 

 

 

 

Circulation

 

 

 

 

 

 

 

 

 

 

 

 

Print circulation

 

$

15,507 

 

$

16,848 

 

$

47,501 

 

$

50,748 

Digital circulation

 

 

1,302 

 

 

1,048 

 

 

3,594 

 

 

2,816 

Total

$

16,809 

 

$

17,896 

 

$

51,095 

 

$

53,564 



 

 

 

 

 

 

 

 

 

 

 

 

Printing, Distribution and Other

 

$

4,632 

 

$

5,896 

 

$

14,709 

 

$

18,712 



 

 

 

 

 

 

 

 

 

 

 

 

Total Revenue

 

$

43,057 

 

$

49,052 

 

$

136,761 

 

$

149,674 



Advertising and Marketing Services



Print advertising revenue represents sales of advertising space within the Company’s core and niche newspapers, as well as preprinted advertisements inserted into the Company’s core newspapers and niche publications or distributed to non-subscribers through the mail.



Digital advertising and marketing services revenue is generated by selling banner and real estate classified advertising on The Dallas Morning News’ website dallasnews.com, online employment and obituary classified advertising on third-party websites sold under a print/digital bundle package and sales of online automotive classifieds on the cars.com platform. In addition, it includes targeted and multi-channel (programmatic) advertising placed on third-party websites, content development, social media management, search optimization, creative strategy services, sale of promotional merchandise, and other consulting. The Company’s agreement to sell on the cars.com platform was not renewed and ended September 30, 2019.



Advertising and marketing services revenue is primarily recognized at a point in time when the ad or service is complete and delivered, based on the customers’ contract price. In addition, certain digital advertising revenue related to website access is recognized over time, based on the customers’ monthly rate.

A. H. Belo Corporation Third Quarter 2019 on Form 10-Q     11


 

Table of Contents

 

For ads placed on certain third-party websites, the Company must evaluate whether it is acting as the principal, where revenue is reported on a gross basis, or acting as the agent, where revenue is reported on a net basis. Generally, the Company reports advertising revenue for ads placed on third-party websites on a net basis, meaning the amount recorded to revenue is the amount billed to the customer net of amounts paid to the publisher of the third-party website. The Company is acting as the agent because the publisher controls the advertising inventory.



Circulation



Print circulation revenue is generated primarily by selling home delivery subscriptions and from single copy sales to non-subscribers. Home delivery and single copy revenue is recognized at a point in time when the paper is delivered or purchased.



Digital circulation revenue is generated by digital-only subscriptions and is recognized over time, based on the customers’ monthly rate.



Printing, Distribution and Other



Printing, distribution and other revenue is primarily generated from printing and distribution of other newspapers, as well as production of preprinted advertisements for other newspapers. Printing, distribution and other revenue is recognized at a point in time when the product or service is delivered.



Remaining Performance Obligations



The Company has various advertising and digital services contracts that range from 13 months to 36 months. The Company recognizes revenue on the advertising contracts over the term of the agreement at a point in time when the service or product is delivered. The Company recognizes revenue on the digital services contracts over time, based on the customers’ monthly rate. At September 30, 2019, the remaining performance obligation was $4,016. The Company expects to recognize $473 over the remainder of 2019, $1,617 in 2020, $1,353 in 2021, and $573 in 2022.



Deferred Revenue



Deferred revenue is recorded when cash payments are received in advance of the Company’s performance, including amounts which are refundable. The short-term and long-term deferred revenue balance as of September 30, 2019, was $12,377, included in advance subscription payments, other accrued expense and other liabilities in the Consolidated Balance Sheet. In the nine months ended September 30, 2019, the balance decreased $218,  primarily driven by $11,178 of revenue recognized that was included in the deferred revenue balance as of December 31, 2018, offset by cash payments received in advance of satisfying our performance obligations.



Practical Expedients and Exemptions



The Company generally expenses sales commissions and circulation acquisition costs when incurred because the amortization period would have been one year or less. These costs are recorded within employee compensation and benefits expense and other production, distribution and operating costs expense, respectively.



The Company does not disclose the value of unsatisfied performance obligations for contracts with an original expected length of one year or less and contracts for which revenue is recognized at the amount invoiced for services performed.









Note 5: Leases



Adoption of ASU 2016-02 – Leases (Topic 842)



On January 1, 2019, the Company adopted ASU 2016-02 using the modified retrospective approach applied to all leases with a remaining lease term greater than one year. Results for reporting periods beginning after January 1, 2019, are presented in accordance with the new guidance under ASU 2016-02, while prior period amounts are not restated. The adoption of the new lease guidance resulted in the Company recognizing operating lease right-of-use assets and lease liabilities based on the present value of remaining minimum lease payments. For the discount rate assumption, the implicit rate was not readily determinable in the Company’s lease agreements. Therefore, the Company used an estimated secured incremental borrowing rate, based on the Company’s credit rating, adjusted for the weighted average term of each lease in determining the present value of lease payments. There was no impact to opening retained earnings.

A. H. Belo Corporation Third Quarter 2019 on Form 10-Q     12


 

Table of Contents

 

The Company elected the practical expedients available under ASU 2016-02 and applied them consistently to all applicable leases. The Company did not apply ASU 2016-02 to any leases with a remaining term of 12 months or less. For these leases, no asset or liability was recorded and lease expense continues to be recognized on a straight-line basis over the lease term. As allowed by the practical expedients, the Company does not reassess whether any expired or existing contracts are or contain leases, does not reassess the lease classification for any expired or existing leases and does not reassess initial direct costs for existing leases. Additionally, the Company does not separately identify lease and nonlease components, such as maintenance costs.



Lease Accounting



The Company has various operating leases primarily for office space and other distribution centers, some of which include escalating lease payments and options to extend or terminate the lease. The Company determines if a contract is a lease at the inception of the arrangement. The exercise of lease renewal options are at the Company’s sole discretion and options are recognized when it is reasonably certain the Company will exercise the option. The Company’s leases have remaining terms of less than 1 year to 15 years. The Company does not have lease agreements with residual value guarantees, sale leaseback terms or material restrictive covenants.



The Company has a sublease with Denton Publishing Company for a remaining term of approximately four years. Additionally, the Company has various subleases with distributors, for distribution center space, with varying remaining lease terms of less than one year to two years and are cancellable with notice by either party. As of September 30, 2019, sublease income is expected to approximate $208 for the remainder of 2019, $388 in 2020, $237 in 2021, $223 in 2022, and $129 in 2023.



Operating lease right-of-use assets and liabilities are recognized at commencement date of lease agreements greater than one year based on the present value of lease payments over the lease term. Lease expense is recognized on a straight-line basis over the lease term and variable lease costs are expensed as incurred. In the third quarter of 2019, the Company recorded an additional right-of-use asset and liability of $505 for a lease that commenced on September 1, 2019, with a lease term of five years. As of September 30, 2019, the Company entered into two additional operating leases with lease terms of three years, which will result in an additional right-of-use asset and liability of approximately $1,200 upon commencement.



The table below sets forth supplemental Consolidated Balance Sheet information for the Company’s leases.





 

 

 

 

 

 

 



 

 

 

 

 

 

 



 

 

Classification

 

September 30, 2019

Assets

 

 

 

 

 

 

 

Operating

 

 

Operating lease right-of-use assets

 

$

22,119 



 

 

 

 

 

 

 

Liabilities

 

 

 

 

 

 

 

Operating

 

 

 

 

 

 

 

Current

 

 

Other accrued expense

 

$

1,705 

Noncurrent

 

 

Long-term operating lease liabilities

 

 

23,598 

Total lease liabilities

 

 

 

 

$

25,303 



 

 

 

 

 

 

 

Lease Term and Discount Rate

 

 

 

 

 

 

 

Operating leases

 

 

 

 

 

 

 

Weighted average remaining lease term (years)

 

 

 

 

 

11.7 

Weighted average discount rate (%)

 

 

 

 

 

7.5 



A. H. Belo Corporation Third Quarter 2019 on Form 10-Q     13


 

Table of Contents

 

The table below sets forth components of lease expense and supplemental cash flow information for the Company’s leases.





 

 

 

 

 

 



 

 

 

 

 

 



 

Three Months Ended September 30, 2019

 

 

Nine Months Ended September 30, 2019

Lease Cost

 

 

 

 

 

 

Operating lease cost

 

$

1,072 

 

$

3,172 

Short-term lease cost

 

 

30 

 

 

121 

Variable lease cost

 

 

175 

 

 

420 

Sublease income

 

 

(172)

 

 

(515)

Total lease cost

 

$

1,105 

 

$

3,198 



 

 

 

 

 

 

Supplemental Cash Flow Information

 

 

 

 

 

 

Cash paid for operating leases included in operating activities

 

 

 

 

$

3,057 

Right-of-use assets obtained in exchange for operating lease liabilities

 

 

 

 

 

23,886 



The table below sets forth the remaining maturities of the Company’s lease liabilities as of September 30, 2019.





 

 

 



 

 

 

Years Ending December 31,

 

Operating Leases

2019

 

$

721 

2020

 

 

3,688 

2021

 

 

3,661 

2022

 

 

3,613 

2023

 

 

3,139 

Thereafter

 

 

24,588 

Total lease payments

 

 

39,410 

Less: imputed interest

 

 

14,107 

Total lease liabilities

 

$

25,303 



The table below sets forth the future minimum obligations for operating leases in effect as of December 31, 2018, as determined prior to the adoption of ASU 2016-02. Total operating lease expense was $4,688 for the year ended December 31, 2018.





 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 



 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 



 

Total

 

 

2019

 

 

2020

 

 

2021

 

 

2022

 

 

2023

 

 

Thereafter

Operating lease commitments

$

41,837 

 

$

4,403 

 

$

3,588 

 

$

3,575 

 

$

3,467 

 

$

3,533 

 

$

23,271 











Note 6:  Goodwill and Intangible Assets



In the third quarter of 2019, the Company reorganized all of its operations into a single decision-making reporting structure resulting in one reportable segment. Prior to the third quarter, the Company had two reportable segments, Publishing and Marketing Services, that each operated as a single reporting unit (see Note 2 – Segment Reporting). The table below sets forth intangible assets as of September 30, 2019 and December 31, 2018.





 

 

 

 

 



 

 

 

 

 



September 30,

 

December 31,



2019

 

2018



 

 

 

 

(Restated)

Intangible Assets

 

 

 

 

 

Cost

$

2,030 

 

$

6,470 

Accumulated Amortization

 

(1,572)

 

 

(3,196)

Asset Impairments

 

 —

 

 

(2,970)

Net Carrying Value

$

458 

 

$

304 



The intangible assets include $1,520 of developed technology with an estimated useful life of five years and net carrying value of $76 that will be fully amortized by the end of 2019, and $510 of customer relationships with estimated useful lives of two years and net carrying value of $382. Aggregate amortization expense was $140 and $199 for the three months ended September 30, 2019 and 2018, respectively, and $356 and $599 for the nine months ended September 30, 2019 and 2018, respectively.

A. H. Belo Corporation Third Quarter 2019 on Form 10-Q     14


 

Table of Contents

 

In the second quarter of 2019, in connection with the Cubic Creative acquisition, the Company recorded $1,593 of goodwill. In the third quarter of 2019, the Company made a strategic change to move to a single-decision making reporting structure. With this restructuring, the Company revised its financial forecast for the remainder of the year, which resulted in a significant decrease in operating income for the Marketing Services reporting unit. The reorganization to one operating segment coupled with the significant decrease in the Marketing Services forecast was determined to be a triggering event that required an impairment review of goodwill and long-lived assets. Prior to the organizational changes that resulted in one reportable segment, Cubic Creative was determined to be a component within the Marketing Services segment.



In the third quarter of 2019, the Company tested the Marketing Services segment’s goodwill for impairment using a discounted cash flow methodology with a peer-based risk-adjusted weighted average cost of capital. The Company believes the use of a discounted cash flow approach is the most reliable indicator of the estimated fair value of the business. Upon completion of the test, it was determined the Marketing Services reporting unit’s carrying value exceeded its estimated fair value. Accordingly, the Company recorded a noncash goodwill impairment charge of $1,593 in the third quarter of 2019, fully impairing goodwill.



In connection with the goodwill impairment, the Company conducted a long-lived assets impairment test for Marketing Services. Upon completion of the test, it was determined the Marketing Services reporting unit’s long-lived assets’ estimated fair values were equal to or exceeded the carrying value and accordingly, no impairment was warranted.



Note 7:  Related Party Transactions



On March 1, 2019, the Company made a loan of $200 to eSite Analytics, Inc. As of September 30, 2019 and December 31, 2018, the Company had a note receivable of $625 and $650, respectively, included in prepaids and other current assets, and other assets in the Consolidated Balance Sheets, respectively. The Company accounts for eSite Analytics, Inc. as an equity method investment.



On February 13, 2020, eSite Analytics, Inc. paid off their loan, including interest.



Note 8:  Income Taxes



The Company historically determined the quarterly income tax provision using a discrete year-to-date calculation due to volatility in the newspaper industry and the resulting inability to reliably forecast income or loss before income taxes. The Company calculated the income tax expense or benefit for 2019 interim periods using an estimated annual effective tax rate based on its annual income before income taxes, adjusted for permanent differences, which it applied to the year-to-date income (loss) before income taxes. Although volatility still exists in the newspaper industry, the Company is appropriately using an estimated annual effective tax rate to calculate its quarterly income tax provision, given the Company’s ability to reliably forecast for the current annual period.



The Company recognized income tax provision (benefit) of $(1,808) and $596 for the three months ended September 30, 2019 and 2018, respectively, and $4,688 and $(661) for the nine months ended September 30, 2019 and 2018, respectively. Effective income tax rates were 31.1 percent and 10.6 percent for the nine months ended September 30, 2019 and 2018, respectively. The income tax benefit for the three months ended September 30, 2019, was due to the Texas margin tax, offset by losses generated from operations in the third quarter. The income tax provision for the nine months ended September 30, 2019, was due to the Texas margin tax and year-to-date income, primarily a result of income generated from the sale of the Company’s former headquarters in the second quarter of 2019 (see Note 13 – Disposal of Assets).



In the second and third quarter of 2018, the Company received a refund of $3,210 and $4,095, respectively, for 2016 and 2017 tax benefits recognized that were carried back against taxes paid in 2014.



Note 9:  Pension and Other Retirement Plans



Defined Benefit Plans.    The Company sponsors the A. H. Belo Pension Plans (the “Pension Plans”), which provide benefits to approximately 1,400 current and former employees of the Company. A. H. Belo Pension Plan I provides benefits to certain current and former employees primarily employed with The Dallas Morning News or the A. H. Belo corporate offices. A. H. Belo Pension Plan II provides benefits to certain former employees of The Providence Journal Company. This obligation was retained by the Company upon the sale of the newspaper operations of The Providence Journal. No additional benefits are accruing under the A. H. Belo Pension Plans, as future benefits were frozen.



No contributions are required to the A. H. Belo Pension Plans in 2019 under the applicable tax and labor laws governing pension plan funding.

A. H. Belo Corporation Third Quarter 2019 on Form 10-Q     15


 

Table of Contents

 

Net Periodic Pension Benefit



The Company’s estimates of net periodic pension expense or benefit are based on the expected return on plan assets, interest on the projected benefit obligations and the amortization of actuarial gains and losses that are deferred in accumulated other comprehensive loss. The table below sets forth components of net periodic pension benefit, which are included in other income, net in the Consolidated Statements of Operations.











 

 

 

 

 

 

 

 

 

 

 

 



 

 

 

 

 

 

 

 

 

 

 

 



 

Three Months Ended September 30,

 

Nine Months Ended September 30,



 

2019

 

2018

 

2019

 

2018

Interest cost

 

$

1,973 

 

$

1,796 

 

$

5,922 

 

$

5,389 

Expected return on plans' assets

 

 

(2,866)

 

 

(2,894)

 

 

(8,599)

 

 

(8,681)

Amortization of actuarial loss

 

 

70 

 

 

168 

 

 

209 

 

 

503 

Net periodic pension benefit

 

$

(823)

 

$

(930)

 

$

(2,468)

 

$

(2,789)



Defined Contribution Plans.    The A. H. Belo Savings Plan (the “Savings Plan”), a defined contribution 401(k) plan, covers substantially all employees of A. H. Belo. Participants may elect to contribute a portion of their pretax compensation as provided by the Savings Plan and the Internal Revenue Code. Employees can contribute up to 100 percent of their annual eligible compensation less required withholdings and deductions up to statutory limits. The Company provides an ongoing dollar-for-dollar match of eligible employee contributions, up to 1.5 percent of the employees’ compensation. During the three months ended September 30, 2019 and 2018, the Company recorded expense of $178 and $199, respectively, and during the nine months ended September 30, 2019 and 2018, the Company recorded expense of $503 and $653, respectively, for matching contributions to the Savings Plan.



Note 10:  Shareholders’ Equity



Dividends.    On September 11, 2019, the Company’s board of directors declared an $0.08 per share dividend to shareholders of record as of the close of business on November 15, 2019, paid on December 6, 2019.



Treasury Stock.   The Company repurchased shares of its common stock pursuant to a publicly announced share repurchase program authorized by the Company’s board of directors. The agreement to repurchase the Company’s stock expired in the fourth quarter of 2019 and was not renewed.



Outstanding Shares.    The Company had Series A and Series B common stock outstanding of 18,974,107 and 2,469,348, respectively, net of treasury shares at September 30, 2019. At December 31, 2018, the Company had Series A and Series B common stock outstanding of 19,157,358 and 2,469,555, respectively, net of treasury shares.



Accumulated other comprehensive loss.    Accumulated other comprehensive loss consists of actuarial gains and losses attributable to the A. H. Belo Pension Plans, gains and losses resulting from Pension Plans’ amendments and other actuarial experience attributable to other post-employment benefit (“OPEB”) plans. The Company records amortization of the components of accumulated other comprehensive loss in employee compensation and benefits in its Consolidated Statements of Operations. Gains and losses associated with the A. H. Belo Pension Plans are amortized over the weighted average remaining life expectancy of the Pension Plans’ participants. Gains and losses associated with the Company’s OPEB plans are amortized over the average remaining service period of active OPEB plans’ participants.



A. H. Belo Corporation Third Quarter 2019 on Form 10-Q     16


 

Table of Contents

 

The tables below set forth the changes in accumulated other comprehensive loss, net of tax, as presented in the Company’s consolidated financial statements.







 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 



 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 



 

Three Months Ended September 30,



 

2019

 

2018



 

Total

 

Defined
benefit pension
plans

 

Other post-
employment
benefit plans

 

Total

 

Defined
benefit pension
plans

 

Other post-
employment
benefit plans

Balance, beginning of period

 

$

(37,516)

 

$

(37,864)

 

$

348 

 

$

(24,617)

 

$

(25,099)

 

$

482 

Amortization

 

 

63 

 

 

70 

 

 

(7)

 

 

158 

 

 

168 

 

 

(10)

Balance, end of period

 

$

(37,453)

 

$

(37,794)

 

$

341 

 

$

(24,459)

 

$

(24,931)

 

$

472 







 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 



 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 



 

Nine Months Ended September 30,



 

2019

 

2018



 

Total

 

Defined
benefit pension
plans

 

Other post-
employment
benefit plans

 

Total

 

Defined
benefit pension
plans

 

Other post-
employment
benefit plans

Balance, beginning of period

 

$

(37,641)

 

$

(38,003)

 

$

362 

 

$

(24,932)

 

$

(25,434)

 

$

502 

Amortization

 

 

188 

 

 

209 

 

 

(21)

 

 

473 

 

 

503 

 

 

(30)

Balance, end of period

 

$

(37,453)

 

$

(37,794)

 

$

341 

 

$

(24,459)

 

$

(24,931)

 

$

472 







Note 11:  Earnings Per Share



The table below sets forth the reconciliation for net income (loss) and weighted average shares used for calculating basic and diluted earnings per share (“EPS”). The Company’s Series A and Series B common stock equally share in the distributed and undistributed earnings.







 

 

 

 

 

 

 

 

 

 

 

 



 

 

 

 

 

 

 

 

 

 

 

 



 

Three Months Ended September 30,

 

Nine Months Ended September 30,



 

2019

 

2018

 

2019

 

2018

Earnings (Numerator)