Industry Segments

9 Months Ended

Sep. 30, 2011

Industry Segments [Abstract]

Industry Segments

11. 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, Broadcasting and Merchandising. In 2010, the Company announced its plan to report the results of operations from its former Publishing and Internet operating segments under the operating segment titled "Publishing." The Company has been continuing to execute its strategy to leverage its core content across its print and digital platforms more efficiently by further centralizing the creative process. In addition, during the fourth quarter of 2010, the Company reorganized its advertising sales force to centralize selling efforts across all media. As a result of these fundamental changes in the way it views its business, the Company evaluated its operating segments and determined that the print and digital platforms no longer met the definition of separate operating segments in accordance with ASC 280, Segment Reporting. The new Publishing segment provides management with a more meaningful assessment of the operating performance of the Company's print and digital platforms.

The Publishing segment primarily consists of the Company's operations related to its magazines and books, as well as its digital operations which includes the content-driven website, www.marthastewart.com. The Broadcasting segment primarily consists of the Company's television production operations and its satellite radio operations. The Martha Stewart Show season 5 aired in syndication over a 12-month period beginning in the middle of September 2009 and ending in the middle of September 2010. Season 6 of The Martha Stewart Show aired on Hallmark Channel also over a 12-month period beginning and ending in the middle of September with season 7 of The Martha Stewart Show currently airing on Hallmark Channel beginning September 26, 2011. The Merchandising segment consists of the Company's operations related to the design of merchandise and related promotional and packaging materials that are licensed to and distributed by its retail and manufacturing partners.

The accounting policies for the Company's business segments are discussed in more detail in the 2010 Form 10-K.

Segment information for the quarters ended September 30, 2011 and 2010 is as follows:

(in thousands)	Publishing			Broadcasting			Merchandising			Corporate			Consolidated
2011
Revenues	$	33,242			6,626			12,336			—		$	52,204
Non–cash equity compensation		(273	)		(35	)		(201	)		(1,623	)		(2,132	)
Depreciation and amortization		(194	)		(128	)		(8	)		(697	)		(1,027	)
Restructuring charges		(350	)		(354	)		—			(3,088	)		(3,792	)
Operating (loss) / income		(3,585	)		(1,320	)		7,179			(11,568	)		(9,294	)
2010
Revenues	$	34,318		$	5,795		$	9,575			—		$	49,688
Non–cash equity compensation		(18	)		(3	)		50			(734	)		(705	)
Depreciation and amortization		(253	)		(612	)		(13	)		(749	)		(1,627	)
Operating (loss) / income		(1,113	)		(4,074	)		5,501			(8,222	)		(7,908	)

Segment information for the nine months ended September 30, 2011 and 2010 is as follows:

(in thousands)	Publishing			Broadcasting			Merchandising			Corporate			Consolidated
2011
Revenues	$	102,059			22,195			35,484			—		$	159,738
Non–cash equity compensation		(600	)		(61	)		(211	)		(3,674	)		(4,546	)
Depreciation and amortization		(543	)		(359	)		(24	)		(2,021	)		(2,947	)
Restructuring charges		(350	)		(354	)		—			(3,088	)		(3,792	)
Operating (loss) / income		(7,349	)		(3,616	)		21,196			(28,788	)		(18,557	)
2010
Revenues	$	100,945		$	26,076		$	31,200		$	—		$	158,221
Non–cash equity compensation		(482	)		(217	)		(635	)		(2,841	)		(4,175	)
Depreciation and amortization		(922	)		(748	)		(35	)		(1,984	)		(3,689	)
Operating (loss) / income		(1,789	)		(2,354	)		18,154			(26,092	)		(12,081	)