XML 75 R18.htm IDEA: XBRL DOCUMENT v2.4.0.6
Mandatorily Redeemable Financial Instrument (Notes)
12 Months Ended
Dec. 31, 2012
Mandatorily Redeemable Financial Instrument [Abstract]  
Mandatorily Redeemable Financial Instrument [Text Block]
Mandatorily Redeemable Financial Instrument

On November 9, 2012, the Company acquired substantially all of the issued and outstanding capital stock of Ziff Davis, Inc. ("Ziff Davis"). In connection with the acquisition, the issued and outstanding capital stock was exchanged for shares of Series A Cumulative Participating Preferred Stock ("Series A Stock") of Ziff Davis. Ziff Davis is accounted for as a consolidated subsidiary as of the date of acquisition. Certain minority interest holders have an ownership in Series A Stock which is being accounted for as a non-controlling interest. The Series A Stock bears a 15% annual cumulative dividend, compounded quarterly, whether or not earned or declared and whether or not there are funds legally available for payment of dividends. The Series A Stock is subject to mandatory repayment or redemption on November 9, 2017, which Ziff Davis may repay or redeem the Series A at its option prior to the mandatory repayment or redemption date. The repayment amount represents $1,000 for each share of Series A Stock and all accrued but unpaid dividends, subject to certain reduction when repaid. The redemption amount represents $1,000 for each share of Series A Stock and all accrued but unpaid dividends plus the fair market value of a notional number of shares of the Ziff Davis common stock on a basis of 485 5/7 common shares per share of Series A Stock.

The Series A Stock meets the definition of a mandatorily redeemable financial instrument which requires liability classification and remeasurement at each reporting period on the consolidated subsidiaries financial statements. As the fair value of the Series A Stock was less than the mandatory redemption amount at issuance, periodic accretions using the interest method are made so that the carrying amount equals the redemption amount on the mandatory redemption date. The carrying amount of Series A Stock is $8.7 million on the consolidated balance sheet and is recorded in Mandatorily Redeemable Financial Instrument and the cumulative dividend is $3.7 million as of December 31, 2012.