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Industry Segments
 6 Months Ended
Jun. 30, 2013
Segment Reporting [Abstract]  
Industry Segments
Industry Segments
The Company is an integrated media and merchandising company providing consumers with inspiring lifestyle content and programming, and well-designed, high-quality products. The Company’s business segments are Publishing, Merchandising and Broadcasting.
The Publishing segment primarily consists of the Company’s operations related to its magazines (Martha Stewart Living, Martha Stewart Weddings, and special interest publications) and books, as well as its digital operations, which includes the content-driven website, marthastewart.com, and the digital distribution of video content. Publishing segment results can vary from quarter to quarter due to publication schedules and seasonality of certain types of advertising. Certain costs vary from quarter to quarter, particularly newsstand marketing costs associated with the distribution of the Company's magazines. As part of the Company's restructuring announced in November 2012, Everyday Food ceased publication as a stand-alone title with its December 2012 issue and Whole Living was discontinued after its January/February 2013 issue.
The Merchandising segment primarily consists of the Company’s operations related to the design and branding of merchandise and related collateral and packaging materials that are manufactured and distributed by its retail and wholesale partners in exchange for royalty income. Revenues from the Merchandising segment can vary significantly from quarter to quarter due to changes in product mix, new product launches and the performance of certain seasonal product lines. The Merchandising segment also includes the licensing of talent services for television programming that are produced by third parties.
The Broadcasting segment consists of the Company's limited television production operations, television content library licensing and satellite radio operations. In 2012, the Company significantly restructured its Broadcasting segment, which included the termination of the Company's live audience television production operations. While future revenues and assets from these operations are not expected to be significant, the Company plans to continue reporting activities under the Broadcasting segment to provide historical context.
Segment information for the three months ended June 30, 2013 and 2012 is as follows:
(in thousands)
Publishing
 
Merchandising
 
Broadcasting
 
Corporate
 
Consolidated
2013
 
 
 
 
 
 
 
 
 
Revenues
$
24,190

 
$
16,116

 
$
1,892

 
$
—

 
$
42,198

Non–cash equity compensation
(101
)
 
(45
)
 
1

 
(234
)
 
(379
)
Depreciation and amortization
(274
)
 
(12
)
 
(1
)
 
(839
)
 
(1,126
)
Restructuring charges
(140
)
 
—

 
—

 
(12
)
 
(152
)
Gain on sale of subscriber list, net
35

 
—

 
—

 
—

 
35

Operating (loss) / income
(5,744
)
 
11,707

 
1,065

 
(7,664
)
 
(636
)
2012
 
 
 
 
 
 
 
 
 
Revenues
$
28,806

 
$
14,489

 
$
4,589

 
$
—

 
$
47,884

Non–cash equity compensation
(127
)
 
(70
)
 
(15
)
 
(602
)
 
(814
)
Depreciation and amortization
(185
)
 
(14
)
 
(105
)
 
(714
)
 
(1,018
)
Restructuring charges
(93
)
 
(81
)
 
(529
)
 
(74
)
 
(777
)
Operating (loss) / income
(5,015
)
 
10,178

 
536

 
(8,584
)
 
(2,885
)

Segment information for the six months ended June 30, 2013 and 2012 is as follows:
(in thousands)
Publishing
 
Merchandising
 
Broadcasting
 
Corporate
 
Consolidated
2013
 
 
 
 
 
 
 
 
 
Revenues
$
48,672

 
$
27,623

 
$
3,127

 
$
—

 
$
79,422

Non–cash equity compensation *
(245
)
 
(124
)
 
(6
)
 
(587
)
 
(962
)
Depreciation and amortization
(529
)
 
(27
)
 
(25
)
 
(1,512
)
 
(2,093
)
Restructuring charges *
(140
)
 
(392
)
 
—

 
(143
)
 
(675
)
Gain on sale of subscriber list, net
2,724

 
—

 
—

 
—

 
2,724

Operating (loss) / income
(6,734
)
 
17,393

 
2,026

 
(16,366
)
 
(3,681
)
2012
 
 
 
 
 
 
 
 
 
Revenues
$
59,636

 
$
28,122

 
$
9,957

 
$
—

 
$
97,715

Non–cash equity compensation *
(315
)
 
(303
)
 
(31
)
 
(1,495
)
 
(2,144
)
Depreciation and amortization
(365
)
 
(23
)
 
(218
)
 
(1,419
)
 
(2,025
)
Restructuring charges *
(93
)
 
(81
)
 
(529
)
 
(74
)
 
(777
)
Operating (loss) / income
(8,422
)
 
19,622

 
(880
)
 
(17,387
)
 
(7,067
)
 
 
 
 
 
 
 
 
 


* As disclosed on the Company's consolidated statements of cash flows, total non-cash equity compensation expense was $0.9 million and $2.1 million in 2013 and 2012, respectively. Included in non-cash equity compensation expense in 2013 and 2012 were net reversals of expense of approximately $0.03 million and $0.02 million, respectively, which were generated in connection with restructuring activities. Accordingly, these amounts are reflected as restructuring charges in the Company's 2013 and 2012 consolidated statements of operations.