##### Table of Contents



UNITED STATES
SECURITIES AND EXCHANGE COMMISSION
 Washington, D.C. 20549
 FORM 10-Q
  þ
    
    QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934
 For the quarterly period ended September 30, 2010
 or
 o
    
    TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934
 For the transition period from  to
 Commission File Number: 001-11015
 VIAD CORP
 (Exact name of registrant as specified in its charter)
 Delaware
    
    36-1169950(State or other jurisdiction of
    
    (I.R.S. Employer Identification No.)incorporation or organization)1850 North Central Avenue, Suite 800
Phoenix, Arizona
    
    85004-4545(Address of principal executive offices)
    
    (Zip Code)
 (602) 207-4000
 (Registrants telephone number, including area code)
 þ o
 o o
  Large accelerated filer o
    
    Accelerated filer þ
    
    Non-accelerated filer o
    
    Small reporting company o(Do not check if a smaller reporting company)
 o þ




---



TABLE OF CONTENTS  PART IFINANCIAL INFORMATIONItem 1. Financial StatementsCONDENSED CONSOLIDATED BALANCE SHEETSCONDENSED CONSOLIDATED STATEMENTS OF OPERATIONSCONDENSED CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOMECONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWSNOTES TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTSItem 2. Managements Discussion and Analysis of Financial Condition and Results of OperationsItem 3. Quantitative and Qualitative Disclosures About Market RiskItem 4. Controls and ProceduresPART IIOTHER INFORMATIONItem 1A. Risk FactorsItem 2. Unregistered Sales of Equity Securities and Use of ProceedsItem 6. ExhibitsSIGNATURESExhibit 31.1Exhibit 31.2Exhibit 32.1Exhibit 32.2    Table of Contents  
 PART IFINANCIAL INFORMATION
 
 Item 1. Financial Statements.
 VIAD CORP
 
 CONDENSED CONSOLIDATED BALANCE SHEETS
 (Unaudited)
 September 30, 2010
    
    
    December 31, 2009(in thousands, except share data)ASSETSCurrent assets:Cash and cash equivalents
    
    $
    152,127
    
    
    $
    116,342Accounts receivable, net of allowance for doubtful accounts
of $2,130 and $3,892, respectively
    
    
    56,915
    
    
    
    44,767Inventories
    
    
    36,095
    
    
    
    44,818Deferred income taxes
    
    
    20,136
    
    
    
    20,150Asset held for sale
    
    
    
    
    
    
    13,982Other current assets
    
    
    18,134
    
    
    
    21,476Total current assets
    
    
    283,407
    
    
    
    261,535Property and equipment, net
    
    
    146,663
    
    
    
    155,000Other investments and assets
    
    
    30,912
    
    
    
    29,069Deferred income taxes
    
    
    38,086
    
    
    
    35,951Goodwill
    
    
    125,758
    
    
    
    124,931Other intangible assets, net
    
    
    1,970
    
    
    
    2,700Total Assets
    
    $
    626,796
    
    
    $
    609,186LIABILITIES AND STOCKHOLDERS EQUITYCurrent liabilities:Accounts payable
    
    $
    53,323
    
    
    $
    41,509Other current liabilities
    
    
    97,068
    
    
    
    85,077Current portion of long-term debt and capital lease obligations
    
    
    6,954
    
    
    
    4,301Total current liabilities
    
    
    157,345
    
    
    
    130,887Long-term debt and capital lease obligations
    
    
    2,624
    
    
    
    8,487Pension and postretirement benefits
    
    
    32,907
    
    
    
    32,767Other deferred items and liabilities
    
    
    48,119
    
    
    
    52,414Total liabilities
    
    
    240,995
    
    
    
    224,555Commitments and contingencies (Note 15)Stockholders equity:Viad Corp stockholders equity:Common stock, $1.50 par value, 200,000,000 shares
authorized, 24,934,981 shares issued
    
    
    37,402
    
    
    
    37,402Additional capital
    
    
    607,441
    
    
    
    606,038Retained deficit
    
    
    (14,022
    )
    
    
    (16,405
    )Unearned employee benefits and other
    
    
    (4,856
    )
    
    
    (5,954
    )Accumulated other comprehensive income (loss):Unrealized gains on investments
    
    
    232
    
    
    
    154Cumulative foreign currency translation adjustments
    
    
    34,066
    
    
    
    31,283Unrecognized net actuarial loss and prior service credit
    
    
    (10,043
    )
    
    
    (8,385
    )Common stock in treasury, at cost, 4,741,937 and 4,379,125
shares, respectively
    
    
    (272,301
    )
    
    
    (266,618
    )Total Viad Corp stockholders equity
    
    
    377,919
    
    
    
    377,515Noncontrolling interest
    
    
    7,882
    
    
    
    7,116Total stockholders equity
    
    
    385,801
    
    
    
    384,631Total Liabilities and Stockholders Equity
    
    $
    626,796
    
    
    $
    609,186
   Page 2




---



##### Table of Contents



VIAD CORP
 
 CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS
 (Unaudited)
 Three months ended September 30,
    
    
    Nine months ended September 30,2010
    
    
    2009
    
    
    2010
    
    
    2009(in thousands, except per share data)Revenues:Convention and event services
    
    $
    130,609
    
    
    $
    104,895
    
    
    $
    464,465
    
    
    $
    456,512Exhibits and environments
    
    
    32,550
    
    
    
    29,761
    
    
    
    111,544
    
    
    
    109,565Travel and recreation services
    
    
    51,985
    
    
    
    46,469
    
    
    
    81,787
    
    
    
    69,562Total revenues
    
    
    215,144
    
    
    
    181,125
    
    
    
    657,796
    
    
    
    635,639Costs and expenses:Costs of services
    
    
    170,354
    
    
    
    147,035
    
    
    
    517,905
    
    
    
    498,302Costs of products sold
    
    
    34,871
    
    
    
    36,780
    
    
    
    122,048
    
    
    
    123,552Corporate activities
    
    
    1,749
    
    
    
    2,024
    
    
    
    4,451
    
    
    
    4,230Interest income
    
    
    (174
    )
    
    
    (102
    )
    
    
    (358
    )
    
    
    (495
    )Interest expense
    
    
    472
    
    
    
    378
    
    
    
    1,438
    
    
    
    1,223Restructuring charges
    
    
    183
    
    
    
    3,867
    
    
    
    2,795
    
    
    
    6,797Goodwill impairment losses
    
    
    
    
    
    
    98,304
    
    
    
    
    
    
    
    98,304Intangible asset impairment losses
    
    
    
    
    
    
    11,352
    
    
    
    
    
    
    
    11,352Other impairment losses
    
    
    
    
    
    
    1,700
    
    
    
    
    
    
    
    1,700Total costs and expenses
    
    
    207,455
    
    
    
    301,338
    
    
    
    648,279
    
    
    
    744,965Income (loss) before income taxes
    
    
    7,689
    
    
    
    (120,213
    )
    
    
    9,517
    
    
    
    (109,326
    )Income tax expense (benefit)
    
    
    1,911
    
    
    
    (23,947
    )
    
    
    3,909
    
    
    
    (19,735
    )Net income (loss)
    
    
    5,778
    
    
    
    (96,266
    )
    
    
    5,608
    
    
    
    (89,591
    )Net income attributable to noncontrolling interest
    
    
    (982
    )
    
    
    (867
    )
    
    
    (766
    )
    
    
    (640
    )Net income (loss) attributable to Viad
    
    $
    4,796
    
    
    $
    (97,133
    )
    
    $
    4,842
    
    
    $
    (90,231
    )Diluted income (loss) per common shareNet income (loss) attributable to Viad common stockholders
    
    $
    0.23
    
    
    $
    (4.86
    )
    
    $
    0.24
    
    
    $
    (4.52
    )Weighted-average outstanding and potentially dilutive
common shares
    
    
    20,309
    
    
    
    19,981
    
    
    
    20,332
    
    
    
    19,950Basic income (loss) per common shareNet income (loss) attributable to Viad common stockholders
    
    $
    0.23
    
    
    $
    (4.86
    )
    
    $
    0.24
    
    
    $
    (4.52
    )Weighted-average outstanding common shares
    
    
    20,001
    
    
    
    19,981
    
    
    
    20,037
    
    
    
    19,950Dividends declared per common share
    
    $
    0.04
    
    
    $
    0.04
    
    
    $
    0.12
    
    
    $
    0.12
   Page 3




---



##### Table of Contents



VIAD CORP
 
 CONDENSED CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME
 (Unaudited)
 Three months ended September 30,
    
    
    Nine months ended September 30,2010
    
    
    2009
    
    
    2010
    
    
    2009(in thousands)Net income (loss)
    
    $
    5,778
    
    
    $
    (96,266
    )
    
    $
    5,608
    
    
    $
    (89,591
    )Other comprehensive income:Unrealized gains on investments:Holding gains arising during the period, net of tax
    
    
    97
    
    
    
    146
    
    
    
    78
    
    
    
    207Unrealized foreign currency translation adjustments
    
    
    6,693
    
    
    
    11,571
    
    
    
    2,783
    
    
    
    21,995Pension and postretirement benefit plans:Net actuarial loss, net of tax
    
    
    183
    
    
    
    106
    
    
    
    (1,188
    )
    
    
    201Prior service credit, net of tax
    
    
    (175
    )
    
    
    (190
    )
    
    
    (470
    )
    
    
    (570
    )Total other comprehensive income
    
    
    6,798
    
    
    
    11,633
    
    
    
    1,203
    
    
    
    21,833Comprehensive income (loss)
    
    
    12,576
    
    
    
    (84,633
    )
    
    
    6,811
    
    
    
    (67,758
    )Comprehensive income attributable to
noncontrolling interest
    
    
    (982
    )
    
    
    (867
    )
    
    
    (766
    )
    
    
    (640
    )Comprehensive income (loss) attributable to Viad
    
    $
    11,594
    
    
    $
    (85,500
    )
    
    $
    6,045
    
    
    $
    (68,398
    )
   Page 4




---



##### Table of Contents



VIAD CORP
 
 CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS
 (Unaudited)
 Nine months ended September 30,2010
    
    
    2009(in thousands)Cash flows from operating activities:Net income (loss)
    
    $
    5,608
    
    
    $
    (89,591
    )Adjustments to reconcile net income (loss) to net cash provided by
operating activities:Depreciation and amortization
    
    
    21,314
    
    
    
    21,380Deferred income taxes
    
    
    (5,217
    )
    
    
    (6,353
    )Restructuring charges
    
    
    2,795
    
    
    
    6,797Impairment charges
    
    
    
    
    
    
    111,356Losses (gains) on dispositions of property and other assets
    
    
    51
    
    
    
    (22
    )Share-based compensation expense
    
    
    2,748
    
    
    
    2,239Other non-cash items, net
    
    
    3,281
    
    
    
    4,023Change in operating assets and liabilities:Receivables
    
    
    (12,801
    )
    
    
    (2,706
    )Inventories
    
    
    8,723
    
    
    
    8,198Accounts payable
    
    
    12,536
    
    
    
    (6,123
    )Restructuring liabilities
    
    
    (5,866
    )
    
    
    (5,537
    )Accrued compensation
    
    
    7,018
    
    
    
    (16,086
    )Customer deposits
    
    
    2,670
    
    
    
    (4,297
    )Income taxes payable
    
    
    1,983
    
    
    
    (10,281
    )Other assets and liabilities, net
    
    
    429
    
    
    
    (11,354
    )Net cash provided by operating activities
    
    
    45,272
    
    
    
    1,643Cash flows from investing activities:Capital expenditures
    
    
    (11,609
    )
    
    
    (18,727
    )Proceeds from dispositions of property and other assets
    
    
    14,630
    
    
    
    43Net cash provided by (used in) investing activities
    
    
    3,021
    
    
    
    (18,684
    )Cash flows from financing activities:Payments on debt and capital lease obligations
    
    
    (3,944
    )
    
    
    (2,493
    )Dividends paid on common stock
    
    
    (2,466
    )
    
    
    (2,470
    )Common stock purchased for treasury
    
    
    (6,906
    )
    
    
    (1,167
    )Proceeds from exercise of stock options
    
    
    38
    
    
    
    Net cash used in financing activities
    
    
    (13,278
    )
    
    
    (6,130
    )Effect of exchange rate changes on cash and cash equivalents
    
    
    770
    
    
    
    3,674Net increase (decrease) in cash and cash equivalents
    
    
    35,785
    
    
    
    (19,497
    )Cash and cash equivalents, beginning of year
    
    
    116,342
    
    
    
    148,040Cash and cash equivalents, end of period
    
    $
    152,127
    
    
    $
    128,543Supplemental disclosure of cash flow informationCash paid during the period for:Income taxes
    
    $
    5,680
    
    
    $
    8,642Interest
    
    $
    792
    
    
    $
    673Equipment acquired under capital leases
    
    $
    590
    
    
    $
    3,253
   Page 5




---



##### Table of Contents



VIAD CORP
 
 NOTES TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS
(Unaudited)
 Note 1. Basis of Preparation and Principles of Consolidation
      1.
    
    Marketing & Events U.S., which includes all domestic GES and affiliated
operations, including those services formerly provided under the Exhibitgroup/Giltspur
and Becker Group brands. The consolidation of the domestic Marketing & Events Group
operations is aimed to provide a fully integrated service delivery network through a
realigned sales organization, shared infrastructure and facilities, and a common
operational platform.
 2.
    
    Marketing & Events International, which includes all foreign operations of the
Marketing & Events Group and consists of two operating segments: Canada and EMEA
(Europe, Middle East, Africa). This reporting segment includes the operations of the
following companies: GES Exposition Services (Canada) Limited, Giltspur Exhibits of
Canada, Inc., Melville Exhibition and Event Services Limited and Melville Data Services
Limited (collectively Melville) and affiliates, SDD Exhibitions and GES GmbH & Co.
KG.
   Page 6




---



##### Table of Contents



Note 2. Share-Based Compensation
     Restricted Stock
    
    
    PBRSWeighted-Average
    
    
    
    
    
    
    Weighted-AverageGrant Date
    
    
    
    
    
    
    Grant DateShares
    
    
    Fair Value
    
    
    Shares
    
    
    Fair ValueBalance at January 1, 2010
    
    
    390,810
    
    
    $
    24.59
    
    
    
    174,927
    
    
    $
    20.77Granted
    
    
    149,000
    
    
    
    19.19
    
    
    
    
    
    
    
    Vested
    
    
    (65,961
    )
    
    
    34.42
    
    
    
    (29,547
    )
    
    
    35.31Forfeited
    
    
    (2,500
    )
    
    
    22.04
    
    
    
    (126,550
    )
    
    
    15.36Balance at September 30, 2010
    
    
    471,349
    
    
    
    21.53
    
    
    
    18,830
    
    
    
    33.02
    Page 7




---



##### Table of Contents



Weighted-Average
    
    
    OptionsShares
    
    
    Exercise Price
    
    
    ExercisableOptions outstanding at January 1, 2010
    
    
    541,718
    
    
    $
    25.74
    
    
    
    462,683Granted
    
    
    280,900
    
    
    
    19.20Exercised
    
    
    (695
    )
    
    
    19.57Forfeited or expired
    
    
    (38,648
    )
    
    
    26.36Options outstanding at September 30, 2010
    
    
    783,275
    
    
    
    23.37
    
    
    
    468,050
  Options Outstanding
    
    
    Options ExercisableWeighted-Average
    
    Weighted-
    
    
    
    
    
    
    Weighted-Remaining
    
    Average
    
    
    
    
    
    
    AverageRange of Exercise Prices
    
    Shares
    
    
    Contractual Life
    
    Exercise Price
    
    
    Shares
    
    
    Exercise Price$18.40 to $19.20
    
    
    282,150
    
    
    9.4 years
    
    $
    19.20
    
    
    
    1,250
    
    
    $
    18.40$19.57 to $24.05
    
    
    148,434
    
    
    1.2 years
    
    
    21.92
    
    
    
    148,434
    
    
    
    21.92$24.22 to $26.07
    
    
    149,986
    
    
    1.2 years
    
    
    25.12
    
    
    
    141,986
    
    
    
    25.14$26.31 to $26.49
    
    
    137,680
    
    
    1.3 years
    
    
    26.34
    
    
    
    137,680
    
    
    
    26.34$30.82 to $38.44
    
    
    65,025
    
    
    3.4 years
    
    
    34.46
    
    
    
    38,700
    
    
    
    34.23$18.40 to $38.44
    
    
    783,275
    
    
    4.4 years
    
    
    23.37
    
    
    
    468,050
    
    
    
    25.21
  Note 3. Impairment Losses
   Page 8




---



##### Table of Contents



Note 4. Inventories
  September 30,
    
    
    December 31,2010
    
    
    2009(in thousands)Raw materials
    
    $
    19,337
    
    
    $
    23,113Work in process
    
    
    16,758
    
    
    
    21,705Inventories
    
    $
    36,095
    
    
    $
    44,818
  Note 5. Property and Equipment
  September 30,
    
    
    December 31,2010
    
    
    2009(in thousands)Land
    
    $
    9,055
    
    
    $
    8,997Buildings and leasehold improvements
    
    
    87,308
    
    
    
    84,242Equipment and other
    
    
    297,753
    
    
    
    291,108394,116
    
    
    
    384,347Accumulated depreciation
    
    
    (247,453
    )
    
    
    (229,347
    )Property and equipment, net
    
    $
    146,663
    
    
    $
    155,000
    Note 6. Goodwill and Other Intangible Assets
  Marketing &Marketing &
    
    
    Events
    
    
    Travel &Events U.S.
    
    
    International
    
    
    Recreation Group
    
    
    Total(in thousands)Balance at January 1, 2010
    
    $
    62,686
    
    
    $
    22,472
    
    
    $
    39,773
    
    
    $
    124,931Foreign currency translation adjustments
    
    
    
    
    
    
    (198
    )
    
    
    1,025
    
    
    
    827Balance at September 30, 2010
    
    $
    62,686
    
    
    $
    22,274
    
    
    $
    40,798
    
    
    $
    125,758
   Page 9




---



##### Table of Contents



Gross Carrying
    
    
    Accumulated
    
    
    Net CarryingValue
    
    
    Amortization
    
    
    Value(in thousands)Amortized intangible assets:Customer contracts and relationships
    
    $
    2,499
    
    
    $
    (974
    )
    
    $
    1,525Non-compete agreements
    
    
    1,989
    
    
    
    (1,974
    )
    
    
    15Proprietary technology
    
    
    519
    
    
    
    (419
    )
    
    
    100Design libraries
    
    
    175
    
    
    
    (88
    )
    
    
    87Other
    
    
    162
    
    
    
    (96
    )
    
    
    665,344
    
    
    
    (3,551
    )
    
    
    1,793Unamortized intangible assets:Trademarks and trade names
    
    
    177
    
    
    
    
    
    
    
    177Total
    
    $
    5,521
    
    
    $
    (3,551
    )
    
    $
    1,970
  Gross Carrying
    
    
    Accumulated
    
    
    Net CarryingValue
    
    
    Amortization
    
    
    Value(in thousands)Amortized intangible assets:Customer contracts and relationships
    
    $
    2,507
    
    
    $
    (511
    )
    
    $
    1,996Non-compete agreements
    
    
    1,952
    
    
    
    (1,865
    )
    
    
    87Proprietary technology
    
    
    526
    
    
    
    (331
    )
    
    
    195Design libraries
    
    
    175
    
    
    
    (22
    )
    
    
    153Other
    
    
    158
    
    
    
    (65
    )
    
    
    935,318
    
    
    
    (2,794
    )
    
    
    2,524Unamortized intangible assets:Trademarks and trade names
    
    
    176
    
    
    
    
    
    
    
    176Total
    
    $
    5,494
    
    
    $
    (2,794
    )
    
    $
    2,700
  (in thousands)2010
    
    $
    2322011
    
    $
    7172012
    
    $
    3602013
    
    $
    3502014 and thereafter
    
    $
    134
  Page 10




---



##### Table of Contents



Note 7. Accrued Liabilities and Other
  September 30,
    
    
    December 31,2010
    
    
    2009(in thousands)Continuing operations:Customer deposits
    
    $
    44,081
    
    
    $
    41,411Accrued compensation
    
    
    17,646
    
    
    
    10,533Self-insured liability accrual
    
    
    8,069
    
    
    
    8,078Accrued foreign income taxes
    
    
    4,665
    
    
    
    1,118Accrued restructuring
    
    
    2,732
    
    
    
    5,684Accrued sales and use taxes
    
    
    1,895
    
    
    
    3,325Accrued dividends
    
    
    841
    
    
    
    845Other
    
    
    15,285
    
    
    
    12,21295,214
    
    
    
    83,206Discontinued operations:Environmental remediation liabilities
    
    
    913
    
    
    
    1,075Self-insured liability accrual
    
    
    375
    
    
    
    395Other
    
    
    566
    
    
    
    4011,854
    
    
    
    1,871Total other current liabilities
    
    $
    97,068
    
    
    $
    85,077
  September 30,
    
    
    December 31,2010
    
    
    2009(in thousands)Continuing operations:Self-insured liability accrual
    
    $
    15,204
    
    
    $
    14,083Accrued compensation
    
    
    4,881
    
    
    
    4,979Accrued restructuring
    
    
    4,773
    
    
    
    5,971Foreign deferred tax liability
    
    
    2,979
    
    
    
    4,358Accrued income taxes
    
    
    193
    
    
    
    407Deferred gain on sale of property
    
    
    
    
    
    
    646Other
    
    
    4,639
    
    
    
    5,11132,669
    
    
    
    35,555Discontinued operations:Self-insured liability accrual
    
    
    7,872
    
    
    
    8,075Environmental remediation liabilities
    
    
    5,198
    
    
    
    5,638Accrued income taxes
    
    
    977
    
    
    
    948Other
    
    
    1,403
    
    
    
    2,19815,450
    
    
    
    16,859Total other deferred items and liabilities
    
    $
    48,119
    
    
    $
    52,414
 Note 8. Debt
   Page 11




---



##### Table of Contents



Note 9. Stockholders Equity
  Total Viad
    
    
    
    
    
    
    TotalStockholders
    
    
    Noncontrolling
    
    
    StockholdersEquity
    
    
    Interest
    
    
    Equity(in thousands)Balance at January 1, 2010
    
    $
    377,515
    
    
    $
    7,116
    
    
    $
    384,631Net income
    
    
    4,842
    
    
    
    766
    
    
    
    5,608Dividends on common stock
    
    
    (2,466
    )
    
    
    
    
    
    
    (2,466
    )Common stock purchased for treasury
    
    
    (6,906
    )
    
    
    
    
    
    
    (6,906
    )Employee benefit plans
    
    
    2,621
    
    
    
    
    
    
    
    2,621Unrealized foreign currency translation adjustment
    
    
    2,783
    
    
    
    
    
    
    
    2,783Unrealized gain on investments
    
    
    78
    
    
    
    
    
    
    
    78Prior service credit and net actuarial loss
    
    
    (1,658
    )
    
    
    
    
    
    
    (1,658
    )ESOP allocation adjustment
    
    
    1,100
    
    
    
    
    
    
    
    1,100Other
    
    
    10
    
    
    
    
    
    
    
    10Balance at September 30, 2010
    
    $
    377,919
    
    
    $
    7,882
    
    
    $
    385,801
  Total Viad
    
    
    
    
    
    
    TotalStockholders
    
    
    Noncontrolling
    
    
    StockholdersEquity
    
    
    Interest
    
    
    Equity(in thousands)Balance at January 1, 2009
    
    $
    460,555
    
    
    $
    6,534
    
    
    $
    467,089Net income (loss)
    
    
    (90,231
    )
    
    
    640
    
    
    
    (89,591
    )Dividends on common stock
    
    
    (2,470
    )
    
    
    
    
    
    
    (2,470
    )Common stock purchased for treasury
    
    
    (1,167
    )
    
    
    
    
    
    
    (1,167
    )Employee benefit plans
    
    
    2,837
    
    
    
    
    
    
    
    2,837Unrealized foreign currency translation adjustment
    
    
    21,995
    
    
    
    
    
    
    
    21,995Unrealized gain on investments
    
    
    207
    
    
    
    
    
    
    
    207Prior service credit and net actuarial loss
    
    
    (369
    )
    
    
    
    
    
    
    (369
    )ESOP allocation adjustment
    
    
    1,000
    
    
    
    
    
    
    
    1,000Other
    
    
    42
    
    
    
    
    
    
    
    42Balance at September 30, 2009
    
    $
    392,399
    
    
    $
    7,174
    
    
    $
    399,573
  Page 12




---



##### Table of Contents



Note 10. Fair Value Measurements
  Level 1  Quoted prices in active markets for identical assets or liabilities.
 Level 2  Observable inputs other than quoted prices included within Level 1 that are observable
for the asset or liability, either directly or indirectly.
 Level 3  Unobservable inputs to the valuation methodology that are significant to the measurement
of fair value.
  Fair Value Measurements at September 30, 2010 UsingSignificantQuoted Prices
    
    
    Other
    
    
    Significantin Active
    
    
    Observable
    
    
    UnobservedSeptember 30,
    
    
    Markets
    
    
    Inputs
    
    
    Inputs2010
    
    
    (Level 1)
    
    
    (Level 2)
    
    
    (Level 3)(in thousands)Assets:Money market funds
    
    $
    32,775
    
    
    $
    32,775
    
    
    $
    
    
    
    $
    Other mutual funds
    
    
    1,702
    
    
    
    1,702
    
    
    
    
    
    
    
    Total
    
    $
    34,477
    
    
    $
    34,477
    
    
    $
    
    
    
    $
    
     Page 13




---



##### Table of Contents



Note 11. Income Per Share
  Three months ended September 30,
    
    
    Nine months ended September 30,2010
    
    
    2009
    
    
    2010
    
    
    2009(in thousands, except per share data)Basic net income (loss) per shareNumerator:Net income (loss) attributable to Viad
    
    $
    4,796
    
    
    $
    (97,133
    )
    
    $
    4,842
    
    
    $
    (90,231
    )Less: Allocation to non-vested shares
    
    
    (114
    )
    
    
    
    
    
    
    (126
    )
    
    
    Net income (loss) allocated to Viad common stockholders
    
    $
    4,682
    
    
    $
    (97,133
    )
    
    $
    4,716
    
    
    $
    (90,231
    )Denominator:Weighted-average outstanding common shares
    
    
    20,001
    
    
    
    19,981
    
    
    
    20,037
    
    
    
    19,950Net income (loss) attributable to Viad common stockholders
    
    $
    0.23
    
    
    $
    (4.86
    )
    
    $
    0.24
    
    
    $
    (4.52
    )Diluted net income (loss) per shareNumerator:Net income (loss) attributable to Viad
    
    $
    4,796
    
    
    $
    (97,133
    )
    
    $
    4,842
    
    
    $
    (90,231
    )Denominator:Weighted-average outstanding shares
    
    
    20,001
    
    
    
    19,981
    
    
    
    20,037
    
    
    
    19,950Additional dilutive shares related to share-based compensation
    
    
    308
    
    
    
    
    
    
    
    295
    
    
    
    Weighted-average outstanding and potentially dilutive shares
    
    
    20,309
    
    
    
    19,981
    
    
    
    20,332
    
    
    
    19,950Net income (loss) attributable to Viad common stockholders
    
    $
    0.23
    
    
    $
    (4.86
    )
    
    $
    0.24
    
    
    $
    (4.52
    )
  Note 12. Income Taxes
  2010
    
    
    2009(in thousands)Computed income tax expense (benefit) at
statutory federal income tax rate of 35%
    
    $
    3,331
    
    
    
    35.0
    %
    
    $
    (38,264
    )
    
    
    35.0
    %State income tax benefit, net of federal
provision
    
    
    (279
    )
    
    
    (2.9
    %)
    
    
    (5,473
    )
    
    
    5.0
    %Tax resolutions, net
    
    
    (149
    )
    
    
    (1.6
    %)
    
    
    (3,297
    )
    
    
    3.1
    %Change in enacted tax law
    
    
    1,279
    
    
    
    13.5
    %
    
    
    
    
    
    
    0.0
    %Nondeductible goodwill impairment
    
    
    
    
    
    
    0.0
    %
    
    
    26,831
    
    
    
    (24.5
    %)Other, net
    
    
    (273
    )
    
    
    (2.9
    %)
    
    
    468
    
    
    
    (0.5
    %)Income tax expense (benefit)
    
    $
    3,909
    
    
    
    41.1
    %
    
    $
    (19,735
    )
    
    
    18.1
    %
   Page 14




---



##### Table of Contents



Page 15




---



##### Table of Contents



Note 13. Pension and Postretirement Benefits
  Domestic PlansPostretirement
    
    
    ForeignPension Plans
    
    
    Benefit Plans
    
    
    Pension Plans2010
    
    
    2009
    
    
    2010
    
    
    2009
    
    
    2010
    
    
    2009(in thousands)Service cost
    
    $
    53
    
    
    $
    50
    
    
    $
    27
    
    
    $
    19
    
    
    $
    75
    
    
    $
    65Interest cost
    
    
    311
    
    
    
    327
    
    
    
    265
    
    
    
    301
    
    
    
    193
    
    
    
    198Expected return on plan assets
    
    
    (149
    )
    
    
    (149
    )
    
    
    (41
    )
    
    
    (50
    )
    
    
    (149
    )
    
    
    (136
    )Amortization of prior service cost (credit)
    
    
    10
    
    
    
    11
    
    
    
    (293
    )
    
    
    (323
    )
    
    
    
    
    
    
    Recognized net actuarial loss
    
    
    139
    
    
    
    96
    
    
    
    157
    
    
    
    120
    
    
    
    
    
    
    
    Net periodic benefit cost
    
    $
    364
    
    
    $
    335
    
    
    $
    115
    
    
    $
    67
    
    
    $
    119
    
    
    $
    127
  Page 16




---



##### Table of Contents



Domestic PlansPostretirement
    
    
    ForeignPension Plans
    
    
    Benefit Plans
    
    
    Pension Plans2010
    
    
    2009
    
    
    2010
    
    
    2009
    
    
    2010
    
    
    2009(in thousands)Service cost
    
    $
    159
    
    
    $
    138
    
    
    $
    81
    
    
    $
    51
    
    
    $
    227
    
    
    $
    123Interest cost
    
    
    933
    
    
    
    975
    
    
    
    795
    
    
    
    843
    
    
    
    581
    
    
    
    392Expected return on plan assets
    
    
    (447
    )
    
    
    (471
    )
    
    
    (123
    )
    
    
    (154
    )
    
    
    (448
    )
    
    
    (258
    )Amortization of prior service cost (credit)
    
    
    30
    
    
    
    33
    
    
    
    (879
    )
    
    
    (969
    )
    
    
    
    
    
    
    Recognized net actuarial loss
    
    
    416
    
    
    
    276
    
    
    
    470
    
    
    
    270
    
    
    
    
    
    
    
    Net periodic benefit cost
    
    $
    1,091
    
    
    $
    951
    
    
    $
    344
    
    
    $
    41
    
    
    $
    360
    
    
    $
    257
  Note 14. Restructuring Charges
  Marketing &Events Group
    
    
    OtherConsolidation
    
    
    Restructurings
    
    
    Total(in thousands)Balance at January 1, 2010
    
    $
    8,628
    
    
    $
    3,027
    
    
    $
    11,655Restructuring charges
    
    
    2,508
    
    
    
    287
    
    
    
    2,795Cash payments
    
    
    (4,727
    )
    
    
    (1,139
    )
    
    
    (5,866
    )Adjustment to liability
    
    
    (763
    )
    
    
    (278
    )
    
    
    (1,041
    )Foreign currency translation adjustment
    
    
    (38
    )
    
    
    
    
    
    
    (38
    )Balance at September 30, 2010
    
    $
    5,608
    
    
    $
    1,897
    
    
    $
    7,505
 Note 15. Litigation, Claims and Other Contingencies
    Page 17




---



##### Table of Contents



Page 18




---



##### Table of Contents



Note 16. Segment Information
  Three months ended September 30,
    
    
    Nine months ended September 30,2010
    
    
    2009
    
    
    2010
    
    
    2009(in thousands)Revenues:Marketing & Events Group:U.S.
    
    $
    125,127
    
    
    $
    104,737
    
    
    $
    438,996
    
    
    $
    445,767International
    
    
    38,133
    
    
    
    32,830
    
    
    
    144,559
    
    
    
    128,764Intersegment eliminations
    
    
    (101
    )
    
    
    (2,911
    )
    
    
    (7,546
    )
    
    
    (8,454
    )163,159
    
    
    
    134,656
    
    
    
    576,009
    
    
    
    566,077Travel & Recreation Group
    
    
    51,985
    
    
    
    46,469
    
    
    
    81,787
    
    
    
    69,562$
    215,144
    
    
    $
    181,125
    
    
    $
    657,796
    
    
    $
    635,639Segment operating income (loss):Marketing & Events Group:U.S.
    
    $
    (9,544
    )
    
    $
    (19,640
    )
    
    $
    (11,890
    )
    
    $
    (12,497
    )International
    
    
    (2,038
    )
    
    
    (2,598
    )
    
    
    7,131
    
    
    
    6,845(11,582
    )
    
    
    (22,238
    )
    
    
    (4,759
    )
    
    
    (5,652
    )Travel & Recreation Group
    
    
    21,501
    
    
    
    19,548
    
    
    
    22,602
    
    
    
    19,4379,919
    
    
    
    (2,690
    )
    
    
    17,843
    
    
    
    13,785Corporate activities
    
    
    (1,749
    )
    
    
    (2,024
    )
    
    
    (4,451
    )
    
    
    (4,230
    )8,170
    
    
    
    (4,714
    )
    
    
    13,392
    
    
    
    9,555Interest income
    
    
    174
    
    
    
    102
    
    
    
    358
    
    
    
    495Interest expense
    
    
    (472
    )
    
    
    (378
    )
    
    
    (1,438
    )
    
    
    (1,223
    )Restructuring charges:Marketing & Events U.S.
    
    
    (183
    )
    
    
    (3,093
    )
    
    
    (2,508
    )
    
    
    (6,023
    )Travel & Recreation Group
    
    
    
    
    
    
    
    
    
    
    (235
    )
    
    
    Corporate
    
    
    
    
    
    
    (774
    )
    
    
    (52
    )
    
    
    (774
    )Impairment losses:Marketing & Events U.S.
    
    
    
    
    
    
    (90,290
    )
    
    
    
    
    
    
    (90,290
    )Marketing & Events International
    
    
    
    
    
    
    (21,066
    )
    
    
    
    
    
    
    (21,066
    )Income (loss) before income taxes
    
    $
    7,689
    
    
    $
    (120,213
    )
    
    $
    9,517
    
    
    $
    (109,326
    )
 September 30,
    
    
    December 31,2010
    
    
    2009(in thousands)Assets:Marketing & Events U.S.
    
    $
    241,737
    
    
    $
    245,255Marketing & Events International
    
    
    78,900
    
    
    
    78,450Travel & Recreation Group
    
    
    170,015
    
    
    
    147,090Corporate and other
    
    
    136,144
    
    
    
    138,391$
    626,796
    
    
    $
    609,186
 Note 17. Impact of Recent Accounting Pronouncements
   Page 19




---



##### Table of Contents



Note 18. Common Stock Repurchases
   Page 20




---



##### Table of Contents



Item 2. Managements Discussion and Analysis of Financial Condition and Results of Operations.
  Overview:
   Marketing & Events Group
 1.
    
    Marketing & Events U.S., which includes all domestic GES and affiliated
operations, including those services formerly provided under the Exhibitgroup/Giltspur
and Becker Group brands. The consolidation of the domestic Marketing & Events Group
operations is aimed to provide a fully integrated service delivery network through a
realigned sales organization, shared infrastructure and facilities, and a common
operational platform.
 2.
    
    Marketing & Events International, which includes all foreign operations of the
Marketing & Events Group and consists of two operating segments: Canada and EMEA
(Europe, Middle East, Africa). This reporting segment includes the operations of the
following companies: GES Exposition Services (Canada) Limited, Giltspur Exhibits of
Canada, Inc., Melville Exhibition and Event Services Limited and Melville Data Services
Limited (collectively Melville) and affiliates, SDD Exhibitions and GES GmbH & Co.
KG.
     Page 21




---



##### Table of Contents



Travel & Recreation Group
  Viad Corp (Consolidated)
 
    
    Total revenues of $215.1 million compared to $181.1 million in the third quarter of
2009
 
    
    Net income attributable to Viad of $4.8 million versus a loss of $97.1 million in
the third quarter of 2009
 
    
    Diluted income per share of $0.23 versus a loss per share of $4.86 in the third
quarter of 2009
 
    
    Cash and cash equivalents totaled $152.1 million as of September 30, 2010
 
    
    Debt was $9.6 million as of September 30, 2010
 Marketing & Events U.S.
 
    
    Revenues of $125.1 million, an increase of 19.5 percent from the third quarter of
2009
 
    
    Segment operating loss of $9.5 million, as compared to a loss of $19.6 million in
the third quarter of 2009
 Marketing & Events International
 
    
    Revenues of $38.1 million, an increase of 16.2 percent from the third quarter of
2009
 
    
    Segment operating loss of $2.0 million, as compared to a loss of $2.6 million in
the third quarter of 2009
 Travel & Recreation Group
 
    
    Revenues of $52.0 million, an increase of 11.9 percent from the third quarter of
2009
 
    
    Segment operating income of $21.5 million, an increase of 10.0 percent from the
third quarter of 2009
 Non-GAAP Measures:
   Page 22




---



##### Table of Contents



Three months ended September 30,
    
    
    Nine months ended September 30,2010
    
    
    2009
    
    
    2010
    
    
    2009(in thousands)Adjusted EBITDA
    
    $
    14,489
    
    
    $
    (1,501
    )
    
    $
    31,503
    
    
    $
    23,993Impairment losses
    
    
    
    
    
    
    (111,356
    )
    
    
    
    
    
    
    (111,356
    )Interest expense
    
    
    (472
    )
    
    
    (378
    )
    
    
    (1,438
    )
    
    
    (1,223
    )Income tax benefit (expense)
    
    
    (1,911
    )
    
    
    23,947
    
    
    
    (3,909
    )
    
    
    19,735Depreciation and amortization
    
    
    (7,310
    )
    
    
    (7,845
    )
    
    
    (21,314
    )
    
    
    (21,380
    )Net income (loss) attributable to Viad
    
    $
    4,796
    
    
    $
    (97,133
    )
    
    $
    4,842
    
    
    $
    (90,231
    )
   Three months ended
    
    
    Nine months endedSeptember 30,
    
    
    September 30,2010
    
    
    2009
    
    
    2010
    
    
    2009(in thousands)Income (loss) before impairment losses attributable to Viad
    
    $
    4,796
    
    
    $
    (2,955
    )
    
    $
    4,842
    
    
    $
    3,947Impairment losses, net of tax
    
    
    
    
    
    
    (94,178
    )
    
    
    
    
    
    
    (94,178
    )Net income (loss) attributable to Viad
    
    $
    4,796
    
    
    $
    (97,133
    )
    
    $
    4,842
    
    
    $
    (90,231
    )
 Results of Operations:
 Comparison of Third Quarter of 2010 to the Third Quarter of 2009
   Page 23




---



##### Table of Contents



Revenues
    
    
    Segment Operating ResultsWeighted Average
    
    
    Effect of Rate
    
    
    Weighted Average
    
    
    Effect of RateExchange Rates
    
    
    Variance
    
    
    Exchange Rates
    
    
    Variance2010
    
    
    2009
    
    
    (thousands)
    
    
    2010
    
    
    2009
    
    
    (thousands)Marketing & Events Group:Canada
    
    $
    0.96
    
    
    $
    0.92
    
    
    $
    457
    
    
    $
    0.96
    
    
    $
    0.86
    
    
    $
    (94
    )United Kingdom
    
    $
    1.54
    
    
    $
    1.62
    
    
    $
    (1,666
    )
    
    $
    1.65
    
    
    $
    1.71
    
    
    $
    28Travel & Recreation Group:Canada
    
    $
    0.96
    
    
    $
    0.91
    
    
    $
    1,382
    
    
    $
    0.96
    
    
    $
    0.91
    
    
    $
    626
  Marketing & Events Group.
     Page 24




---



##### Table of Contents



Travel & Recreation Group.
    Corporate Activities.
 Restructuring Charges.
 Income Taxes.
  Page 25




---



##### Table of Contents



Comparison of First Nine Months of 2010 to the First Nine Months of 2009
   Revenues
    
    
    Segment Operating ResultsWeighted Average
    
    
    Effect of Rate
    
    
    Weighted Average
    
    
    Effect of RateExchange Rates
    
    
    Variance
    
    
    Exchange Rates
    
    
    Variance2010
    
    
    2009
    
    
    (thousands)
    
    
    2010
    
    
    2009
    
    
    (thousands)Marketing & Events Group:Canada
    
    $
    0.96
    
    
    $
    0.85
    
    
    $
    6,821
    
    
    $
    0.99
    
    
    $
    0.75
    
    
    $
    431United Kingdom
    
    $
    1.53
    
    
    $
    1.54
    
    
    $
    (878
    )
    
    $
    1.51
    
    
    $
    1.47
    
    
    $
    67Travel & Recreation Group:Canada
    
    $
    0.96
    
    
    $
    0.89
    
    
    $
    4,100
    
    
    $
    0.95
    
    
    $
    0.92
    
    
    $
    707
  Marketing & Events Group.
   Page 26




---



##### Table of Contents



Travel & Recreation Group.
 Corporate Activities.
 Restructuring Charges.
 Income Taxes.
 Liquidity and Capital Resources:
      Page 27




---



##### Table of Contents



Page 28




---



##### Table of Contents



Off-Balance Sheet Arrangements:
  Critical Accounting Policies and Estimates:
  Goodwill and other intangible assets 
      Page 29




---



##### Table of Contents



Income taxes
      Page 30




---



##### Table of Contents



Insurance liabilities
 Pension and postretirement benefits
   Page 31




---



##### Table of Contents



Share-based compensation
   Impact of Recent Accounting Pronouncements:
   Page 32




---



##### Table of Contents



Forward-Looking Statements:
  
 Item 3. Quantitative and Qualitative Disclosures About Market Risk.
    Page 33




---



##### Table of Contents



Weighted Average
    
    
    Effect of RateExchange Rates
    
    
    Variance2010
    
    
    2009
    
    
    (thousands)Canadian Operations:Marketing & Events Group
    
    $
    0.96
    
    
    $
    0.86
    
    
    $
    (94
    )Travel & Recreation Group
    
    $
    0.96
    
    
    $
    0.91
    
    
    $
    626United Kingdom Operations:Marketing & Events Group
    
    $
    1.65
    
    
    $
    1.71
    
    
    $
    28
  Weighted Average
    
    
    Effect of RateExchange Rates
    
    
    Variance2010
    
    
    2009
    
    
    (thousands)Canadian Operations:Marketing & Events Group
    
    $
    0.99
    
    
    $
    0.75
    
    
    $
    431Travel & Recreation Group
    
    $
    0.95
    
    
    $
    0.92
    
    
    $
    707United Kingdom Operations:Marketing & Events Group
    
    $
    1.51
    
    
    $
    1.47
    
    
    $
    67
   
 Item 4. Controls and Procedures.
    Page 34




---



##### Table of Contents



PART IIOTHER INFORMATION
 
 Item 1A. Risk Factors.
  
 Item 2. Unregistered Sales of Equity Securities and Use of Proceeds.
  ISSUER PURCHASES OF EQUITY SECURITIES
 Total Number of
    
    
    Maximum Number (orShares Purchased as
    
    
    Approximate Dollar Value)Part of Publicly
    
    
    of Shares that May Yet BeTotal Number of
    
    
    Average Price Paid
    
    
    Announced Plans or
    
    
    Purchased Under the PlansPeriod
    
    Shares Purchased (#)
    
    
    Per Share ($)
    
    
    Programs
    
    
    or ProgramsSeptember 2010
    
    
    356,300
    
    
    
    17.77
    
    
    
    356,300
    
    
    
    304,381Total
    
    
    356,300
    
    
    
    17.77
    
    
    
    356,300
    
    
    
    304,381
   Page 35




---



##### Table of Contents



Item 6. Exhibits.
 Exhibit No. 31.1
    
    Certification of Chief Executive Officer of Viad Corp pursuant to Section 302 of
the Sarbanes-Oxley Act of 2002*Exhibit No. 31.2
    
    Certification of Chief Financial Officer of Viad Corp pursuant to Section 302 of
the Sarbanes-Oxley Act of 2002*Exhibit No. 32.1
    
    Certification of Chief Executive Officer of Viad Corp pursuant to Section 906 of
the Sarbanes-Oxley Act of 2002*Exhibit No. 32.2
    
    Certification of Chief Financial Officer of Viad Corp pursuant to Section 906 of
the Sarbanes-Oxley Act of 2002*
 *
    
    Filed herewith. 
 SIGNATURES
  VIAD CORP(Registrant)November 5, 2010
    
    
    
    By
    
    /s/ G. Michael Latta(Date)
    
    
    
    
    
    G. Michael LattaVice President  Controller(Chief Accounting Officer and Authorized Officer)
  Page 36