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Industry Segments
 9 Months Ended
Sep. 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 produced by third parties.
In 2012, the Company significantly restructured its Broadcasting segment, which included the termination of the Company's live audience television production operations. Subsequent to the restructuring, the Broadcasting segment consists of the Company's limited television production operations, television content library licensing and satellite radio 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 September 30, 2013 and 2012 is as follows:
(in thousands)
Publishing
 
Merchandising
 
Broadcasting
 
Corporate
 
Consolidated
2013
 
 
 
 
 
 
 
 
 
Revenues
$
19,401

 
$
14,153

 
$
294

 
$
—

 
$
33,848

Non–cash equity compensation
(85
)
 
(57
)
 
(1
)
 
(276
)
 
(419
)
Depreciation and amortization
(200
)
 
(12
)
 
(1
)
 
(634
)
 
(847
)
Operating (loss) / income
(6,260
)
 
9,479

 
(214
)
 
(7,081
)
 
(4,076
)
2012
 
 
 
 
 
 
 
 
 
Revenues
$
27,572

 
$
13,233

 
$
2,744

 
$
—

 
$
43,549

Non–cash equity compensation
(169
)
 
(75
)
 
(11
)
 
(702
)
 
(957
)
Depreciation and amortization
(187
)
 
(14
)
 
(87
)
 
(715
)
 
(1,003
)
Restructuring charges
(491
)
 
—

 
—

 
—

 
(491
)
Goodwill impairment
(44,257
)
 
—

 
—

 
—

 
(44,257
)
Operating (loss) / income
(51,264
)
 
8,525

 
281

 
(8,231
)
 
(50,689
)

Segment information for the nine months ended September 30, 2013 and 2012 is as follows:
(in thousands)
Publishing
 
Merchandising
 
Broadcasting
 
Corporate
 
Consolidated
2013
 
 
 
 
 
 
 
 
 
Revenues
$
68,073

 
$
41,776

 
$
3,421

 
$
—

 
$
113,270

Non–cash equity compensation *
(330
)
 
(181
)
 
(7
)
 
(863
)
 
(1,381
)
Depreciation and amortization
(729
)
 
(39
)
 
(26
)
 
(2,146
)
 
(2,940
)
Restructuring charges *
(140
)
 
(392
)
 
—

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

 
—

 
—

 
—

 
2,724

Operating (loss) / income
(12,994
)
 
26,872

 
1,812

 
(23,447
)
 
(7,757
)
2012
 
 
 
 
 
 
 
 
 
Revenues
$
87,208

 
$
41,355

 
$
12,701

 
$
—

 
$
141,264

Non–cash equity compensation *
(484
)
 
(378
)
 
(42
)
 
(2,197
)
 
(3,101
)
Depreciation and amortization
(552
)
 
(37
)
 
(305
)
 
(2,134
)
 
(3,028
)
Restructuring charges *
(584
)
 
(81
)
 
(529
)
 
(74
)
 
(1,268
)
Goodwill impairment
(44,257
)
 
—

 
—

 
—

 
(44,257
)
Operating (loss) / income
(59,686
)
 
28,147

 
(599
)
 
(25,618
)
 
(57,756
)
Total assets **
24,538

 
80,833

 
20,740

 
26,085

 
152,196

* As disclosed on the Company's consolidated statements of cash flows, total non-cash equity compensation expense was $1.4 million and $3.1 million for the nine months ended September 30, 2013 and 2012, respectively. Included in non-cash equity compensation expense for the nine months ended September 30, 2013 were net reversals of expense of approximately $0.03 million. The nine months ended September 30, 2012 include net expense of $(0.02) million, which was generated in connection with restructuring activities. Accordingly, these amounts are reflected as restructuring charges in the Company's consolidated statements of operations for the nine months ended September 30, 2013 and 2012, respectively.
** In accordance with ASC 280, Segment Reporting, total assets are disclosed as of September 30, 2012 in order to reflect the material change in the Publishing segment’s goodwill from the amount disclosed as of December 31, 2011.