☒ | Quarterly Report Pursuant to Section 13 or 15(d) of the Securities Exchange Act of 1934 |
☐ | Transition Report Pursuant to Section 13 or 15(d) of the Securities Exchange Act of 1934 |
(Exact name of registrant as specified in its charter) |
Delaware | 53-0182885 | |||||||||||||||||||
(State or other jurisdiction of incorporation or organization) | (I.R.S. Employer Identification No.) | |||||||||||||||||||
1300 North 17th Street, Arlington, Virginia | 22209 | |||||||||||||||||||
(Address of principal executive offices) | (Zip Code) |
Title of each class | Trading Symbol(s) | Name of each exchange on which registered | ||||||||||||
Class B Common Stock, par value $1.00 per share | GHC | New York Stock Exchange |
Large | Accelerated filer | Non-accelerated filer | Smaller reporting company | Emerging growth company |
PART I. FINANCIAL INFORMATION | ||||||||
Item 1. | Financial Statements | |||||||
Condensed Consolidated Statements of Changes in Common Stockholders' Equity | ||||||||
Organization, Basis of Presentation and Recent Accounting Pronouncements | ||||||||
Acquisitions and Dispositions of Businesses | ||||||||
Investments | ||||||||
Accounts Receivable, Accounts Payable and Accrued Liabilities | ||||||||
Inventories, Contracts in Progress and Vehicle Floor Plan Payable | ||||||||
Goodwill and Other Intangible Assets | ||||||||
Debt | ||||||||
Fair Value Measurements | ||||||||
Income Taxes | ||||||||
Revenue From Contracts With Customers | ||||||||
Earnings Per Share | ||||||||
Pension and Postretirement Plans | ||||||||
Other Non-Operating Income | ||||||||
Accumulated Other Comprehensive Income (Loss) | ||||||||
Contingencies | ||||||||
Business Segments | ||||||||
Item 2. | Management’s Discussion and Analysis of Results of Operations and Financial Condition | |||||||
Item 3. | Quantitative and Qualitative Disclosures about Market Risk | |||||||
Item 4. | Controls and Procedures | |||||||
PART II. OTHER INFORMATION | ||||||||
Item 1A. | Risk Factors | |||||||
Item 2. | Unregistered Sales of Equity Securities and Use of Proceeds | |||||||
Item 6. | Exhibits | |||||||
Signatures |
Three Months Ended September 30 | Nine Months Ended September 30 | Three Months Ended September 30 | Nine Months Ended September 30 | |||||||||||||||||||||||||||||||||||
(in thousands, except per share amounts) | 2017 | 2016 | 2017 | 2016 | (in thousands, except per share amounts) | 2021 | 2020 | 2021 | 2020 | |||||||||||||||||||||||||||||
Operating Revenues | Operating Revenues | |||||||||||||||||||||||||||||||||||||
Education | $ | 377,033 | $ | 386,936 | $ | 1,136,706 | $ | 1,207,086 | ||||||||||||||||||||||||||||||
Advertising | 69,495 | 86,531 | 207,143 | 225,590 | ||||||||||||||||||||||||||||||||||
Other | 210,697 | 148,171 | 572,180 | 419,635 | ||||||||||||||||||||||||||||||||||
Sales of services | Sales of services | $ | 515,280 | $ | 492,399 | $ | 1,509,986 | $ | 1,492,631 | |||||||||||||||||||||||||||||
Sales of goods | Sales of goods | 294,156 | 224,583 | 813,057 | 609,479 | |||||||||||||||||||||||||||||||||
657,225 | 621,638 | 1,916,029 | 1,852,311 | 809,436 | 716,982 | 2,323,043 | 2,102,110 | |||||||||||||||||||||||||||||||
Operating Costs and Expenses | Operating Costs and Expenses | |||||||||||||||||||||||||||||||||||||
Operating | 352,635 | 293,194 | 1,011,553 | 880,859 | ||||||||||||||||||||||||||||||||||
Cost of services sold (exclusive of items shown below) | Cost of services sold (exclusive of items shown below) | 307,138 | 298,250 | 906,555 | 929,877 | |||||||||||||||||||||||||||||||||
Cost of goods sold (exclusive of items shown below) | Cost of goods sold (exclusive of items shown below) | 241,539 | 177,734 | 647,218 | 481,260 | |||||||||||||||||||||||||||||||||
Selling, general and administrative | 232,782 | 237,694 | 678,139 | 709,344 | Selling, general and administrative | 215,891 | 166,207 | 587,181 | 506,199 | |||||||||||||||||||||||||||||
Depreciation of property, plant and equipment | 16,002 | 16,097 | 46,525 | 48,903 | Depreciation of property, plant and equipment | 18,741 | 18,481 | 51,886 | 58,098 | |||||||||||||||||||||||||||||
Amortization of intangible assets | 10,923 | 6,620 | 28,290 | 19,160 | Amortization of intangible assets | 15,981 | 14,150 | 43,807 | 42,642 | |||||||||||||||||||||||||||||
Impairment of goodwill and other long-lived assets | 312 | — | 9,536 | — | Impairment of goodwill and other long-lived assets | 26,753 | 1,916 | 31,568 | 29,828 | |||||||||||||||||||||||||||||
612,654 | 553,605 | 1,774,043 | 1,658,266 | 826,043 | 676,738 | 2,268,215 | 2,047,904 | |||||||||||||||||||||||||||||||
Income from Operations | 44,571 | 68,033 | 141,986 | 194,045 | ||||||||||||||||||||||||||||||||||
Equity in (losses) earnings of affiliates, net | (532 | ) | (1,008 | ) | 1,448 | (895 | ) | |||||||||||||||||||||||||||||||
(Loss) Income from Operations | (Loss) Income from Operations | (16,607) | 40,244 | 54,828 | 54,206 | |||||||||||||||||||||||||||||||||
Equity in earnings of affiliates, net | Equity in earnings of affiliates, net | 12,964 | 4,092 | 28,168 | 3,727 | |||||||||||||||||||||||||||||||||
Interest income | 861 | 740 | 3,397 | 2,052 | Interest income | (79) | 890 | 2,687 | 2,995 | |||||||||||||||||||||||||||||
Interest expense | (8,619 | ) | (8,614 | ) | (25,783 | ) | (24,533 | ) | Interest expense | (9,343) | (7,247) | (25,144) | (22,302) | |||||||||||||||||||||||||
Other income (expense), net | 1,963 | (18,225 | ) | 6,881 | 15,871 | |||||||||||||||||||||||||||||||||
Non-operating pension and postretirement benefit income, net | Non-operating pension and postretirement benefit income, net | 27,561 | 10,489 | 81,564 | 41,028 | |||||||||||||||||||||||||||||||||
Gain (loss) on marketable equity securities, net | Gain (loss) on marketable equity securities, net | 14,069 | 59,364 | 176,981 | (1,139) | |||||||||||||||||||||||||||||||||
Other income, net | Other income, net | 5,218 | 222 | 27,660 | 11,010 | |||||||||||||||||||||||||||||||||
Income Before Income Taxes | 38,244 | 40,926 | 127,929 | 186,540 | Income Before Income Taxes | 33,783 | 108,054 | 346,744 | 89,525 | |||||||||||||||||||||||||||||
Provision for Income Taxes | 13,400 | 7,800 | 40,000 | 54,000 | ||||||||||||||||||||||||||||||||||
(Benefit from) Provision for Income Taxes | (Benefit from) Provision for Income Taxes | (5,900) | 30,000 | 78,500 | 26,500 | |||||||||||||||||||||||||||||||||
Net Income | 24,844 | 33,126 | 87,929 | 132,540 | Net Income | 39,683 | 78,054 | 268,244 | 63,025 | |||||||||||||||||||||||||||||
Net Income Attributable to Noncontrolling Interests | (60 | ) | — | (63 | ) | (868 | ) | |||||||||||||||||||||||||||||||
Net (Income) Loss Attributable to Noncontrolling Interests | Net (Income) Loss Attributable to Noncontrolling Interests | (97) | (439) | (850) | 199 | |||||||||||||||||||||||||||||||||
Net Income Attributable to Graham Holdings Company Common Stockholders | $ | 24,784 | $ | 33,126 | $ | 87,866 | $ | 131,672 | Net Income Attributable to Graham Holdings Company Common Stockholders | $ | 39,586 | $ | 77,615 | $ | 267,394 | $ | 63,224 | |||||||||||||||||||||
Per Share Information Attributable to Graham Holdings Company Common Stockholders | Per Share Information Attributable to Graham Holdings Company Common Stockholders | |||||||||||||||||||||||||||||||||||||
Basic net income per common share | $ | 4.45 | $ | 5.90 | $ | 15.74 | $ | 23.33 | Basic net income per common share | $ | 7.93 | $ | 15.25 | $ | 53.49 | $ | 12.15 | |||||||||||||||||||||
Basic average number of common shares outstanding | 5,518 | 5,544 | 5,530 | 5,570 | Basic average number of common shares outstanding | 4,961 | 5,060 | 4,966 | 5,176 | |||||||||||||||||||||||||||||
Diluted net income per common share | $ | 4.42 | $ | 5.87 | $ | 15.64 | $ | 23.21 | Diluted net income per common share | $ | 7.90 | $ | 15.22 | $ | 53.33 | $ | 12.11 | |||||||||||||||||||||
Diluted average number of common shares outstanding | 5,554 | 5,574 | 5,567 | 5,600 | Diluted average number of common shares outstanding | 4,977 | 5,072 | 4,980 | 5,192 |
Three Months Ended September 30 | Nine Months Ended September 30 | ||||||||||||||||||||||
(in thousands) | 2021 | 2020 | 2021 | 2020 | |||||||||||||||||||
Net Income | $ | 39,683 | $ | 78,054 | $ | 268,244 | $ | 63,025 | |||||||||||||||
Other Comprehensive (Loss) Income, Before Tax | |||||||||||||||||||||||
Foreign currency translation adjustments: | |||||||||||||||||||||||
Translation adjustments arising during the period | (16,033) | 20,430 | (15,352) | (541) | |||||||||||||||||||
Pension and other postretirement plans: | |||||||||||||||||||||||
Amortization of net prior service cost included in net income | 793 | 671 | 2,377 | 2,010 | |||||||||||||||||||
Amortization of net actuarial (gain) loss included in net income | (1,066) | 304 | (4,419) | 914 | |||||||||||||||||||
(273) | 975 | (2,042) | 2,924 | ||||||||||||||||||||
Cash flow hedges gain (loss) | 169 | 157 | 803 | (1,564) | |||||||||||||||||||
Other Comprehensive (Loss) Income, Before Tax | (16,137) | 21,562 | (16,591) | 819 | |||||||||||||||||||
Income tax benefit (expense) related to items of other comprehensive (loss) income | 11 | (299) | 342 | (431) | |||||||||||||||||||
Other Comprehensive (Loss) Income, Net of Tax | (16,126) | 21,263 | (16,249) | 388 | |||||||||||||||||||
Comprehensive Income | 23,557 | 99,317 | 251,995 | 63,413 | |||||||||||||||||||
Comprehensive (income) loss attributable to noncontrolling interests | (97) | (439) | (850) | 199 | |||||||||||||||||||
Total Comprehensive Income Attributable to Graham Holdings Company | $ | 23,460 | $ | 98,878 | $ | 251,145 | $ | 63,612 |
Three Months Ended September 30 | Nine Months Ended September 30 | ||||||||||||||
(in thousands) | 2017 | 2016 | 2017 | 2016 | |||||||||||
Net Income | $ | 24,844 | $ | 33,126 | $ | 87,929 | $ | 132,540 | |||||||
Other Comprehensive Income, Before Tax | |||||||||||||||
Foreign currency translation adjustments: | |||||||||||||||
Translation adjustments arising during the period | 11,470 | (353 | ) | 34,776 | (1,629 | ) | |||||||||
Unrealized gains on available-for-sale securities: | |||||||||||||||
Unrealized gains for the period, net | 47,836 | 12,154 | 71,370 | 7,190 | |||||||||||
Reclassification of realized gain on sale of available-for-sale securities included in net income | — | — | — | (6,256 | ) | ||||||||||
47,836 | 12,154 | 71,370 | 934 | ||||||||||||
Pension and other postretirement plans: | |||||||||||||||
Amortization of net prior service cost included in net income | 118 | 105 | 358 | 314 | |||||||||||
Amortization of net actuarial (gain) loss included in net income | (1,567 | ) | 289 | (4,958 | ) | 868 | |||||||||
(1,449 | ) | 394 | (4,600 | ) | 1,182 | ||||||||||
Cash flow hedge (loss) gain | (72 | ) | 49 | (215 | ) | 49 | |||||||||
Other Comprehensive Income, Before Tax | 57,785 | 12,244 | 101,331 | 536 | |||||||||||
Income tax expense related to items of other comprehensive income | (18,540 | ) | (5,039 | ) | (26,665 | ) | (866 | ) | |||||||
Other Comprehensive Income (Loss), Net of Tax | 39,245 | 7,205 | 74,666 | (330 | ) | ||||||||||
Comprehensive Income | 64,089 | 40,331 | 162,595 | 132,210 | |||||||||||
Comprehensive income attributable to noncontrolling interests | (60 | ) | — | (63 | ) | (868 | ) | ||||||||
Total Comprehensive Income Attributable to Graham Holdings Company | $ | 64,029 | $ | 40,331 | $ | 162,532 | $ | 131,342 |
As of | |||||||||||
(in thousands) | September 30, 2021 | December 31, 2020 | |||||||||
(Unaudited) | |||||||||||
Assets | |||||||||||
Current Assets | |||||||||||
Cash and cash equivalents | $ | 133,882 | $ | 413,991 | |||||||
Restricted cash | 14,272 | 9,063 | |||||||||
Investments in marketable equity securities and other investments | 779,073 | 587,582 | |||||||||
Accounts receivable, net | 578,592 | 537,156 | |||||||||
Inventories and contracts in progress | 100,258 | 120,622 | |||||||||
Prepaid expenses | 78,212 | 75,523 | |||||||||
Income taxes receivable | 15,654 | 29,313 | |||||||||
Other current assets | 1,641 | 942 | |||||||||
Total Current Assets | 1,701,584 | 1,774,192 | |||||||||
Property, Plant and Equipment, Net | 461,107 | 378,286 | |||||||||
Lease Right-of-Use Assets | 427,225 | 462,560 | |||||||||
Investments in Affiliates | 171,249 | 155,777 | |||||||||
Goodwill, Net | 1,612,343 | 1,484,750 | |||||||||
Indefinite-Lived Intangible Assets | 120,093 | 120,437 | |||||||||
Amortized Intangible Assets, Net | 248,246 | 204,646 | |||||||||
Prepaid Pension Cost | 1,772,859 | 1,708,305 | |||||||||
Deferred Income Taxes | 7,854 | 8,396 | |||||||||
Deferred Charges and Other Assets (includes $782 and $0 of restricted cash) | 156,912 | 146,770 | |||||||||
Total Assets | $ | 6,679,472 | $ | 6,444,119 | |||||||
Liabilities and Equity | |||||||||||
Current Liabilities | |||||||||||
Accounts payable and accrued liabilities | $ | 506,638 | $ | 520,236 | |||||||
Deferred revenue | 371,208 | 331,021 | |||||||||
Income taxes payable | 6,869 | 5,140 | |||||||||
Current portion of lease liabilities | 84,144 | 86,797 | |||||||||
Current portion of long-term debt | 44,254 | 6,452 | |||||||||
Dividends declared | 7,496 | — | |||||||||
Total Current Liabilities | 1,020,609 | 949,646 | |||||||||
Accrued Compensation and Related Benefits | 205,514 | 201,918 | |||||||||
Other Liabilities | 33,282 | 48,768 | |||||||||
Deferred Income Taxes | 522,923 | 521,274 | |||||||||
Mandatorily Redeemable Noncontrolling Interest | 11,921 | 9,240 | |||||||||
Lease Liabilities | 392,438 | 428,849 | |||||||||
Long-Term Debt | 511,635 | 506,103 | |||||||||
Total Liabilities | 2,698,322 | 2,665,798 | |||||||||
Redeemable Noncontrolling Interests | 7,412 | 11,928 | |||||||||
Preferred Stock | — | — | |||||||||
Common Stockholders’ Equity | |||||||||||
Common stock | 20,000 | 20,000 | |||||||||
Capital in excess of par value | 388,386 | 388,159 | |||||||||
Retained earnings | 7,042,061 | 6,804,822 | |||||||||
Accumulated other comprehensive income, net of taxes | |||||||||||
Cumulative foreign currency translation adjustment | (5,598) | 9,754 | |||||||||
Unrealized gain on pensions and other postretirement plans | 593,773 | 595,287 | |||||||||
Cash flow hedges | (1,110) | (1,727) | |||||||||
Cost of Class B common stock held in treasury | (4,073,677) | (4,056,993) | |||||||||
Total Common Stockholders’ Equity | 3,963,835 | 3,759,302 | |||||||||
Noncontrolling Interests | 9,903 | 7,091 | |||||||||
Total Equity | 3,973,738 | 3,766,393 | |||||||||
Total Liabilities and Equity | $ | 6,679,472 | $ | 6,444,119 |
As of | |||||||
(in thousands) | September 30, 2017 | December 31, 2016 | |||||
(Unaudited) | |||||||
Assets | |||||||
Current Assets | |||||||
Cash and cash equivalents | $ | 395,009 | $ | 648,885 | |||
Restricted cash | 21,403 | 21,931 | |||||
Investments in marketable equity securities and other investments | 519,586 | 448,241 | |||||
Accounts receivable, net | 525,779 | 615,101 | |||||
Income taxes receivable | 28,108 | 41,635 | |||||
Inventories and contracts in progress | 62,531 | 34,818 | |||||
Other current assets | 65,443 | 60,735 | |||||
Total Current Assets | 1,617,859 | 1,871,346 | |||||
Property, Plant and Equipment, Net | 259,809 | 233,664 | |||||
Investments in Affiliates | 122,166 | 58,806 | |||||
Goodwill, Net | 1,299,226 | 1,122,954 | |||||
Indefinite-Lived Intangible Assets, Net | 109,901 | 66,026 | |||||
Amortized Intangible Assets, Net | 239,152 | 107,939 | |||||
Prepaid Pension Cost | 863,098 | 881,593 | |||||
Deferred Income Taxes | 15,820 | 17,246 | |||||
Deferred Charges and Other Assets | 92,884 | 73,096 | |||||
Total Assets | $ | 4,619,915 | $ | 4,432,670 | |||
Liabilities and Equity | |||||||
Current Liabilities | |||||||
Accounts payable and accrued liabilities | $ | 446,076 | $ | 500,726 | |||
Deferred revenue | 353,367 | 312,107 | |||||
Current portion of long-term debt | 6,713 | 6,128 | |||||
Dividends declared | 7,025 | — | |||||
Total Current Liabilities | 813,181 | 818,961 | |||||
Postretirement Benefits Other Than Pensions | 22,929 | 21,859 | |||||
Accrued Compensation and Related Benefits | 198,907 | 195,910 | |||||
Other Liabilities | 67,589 | 65,554 | |||||
Deferred Income Taxes | 454,027 | 379,092 | |||||
Mandatorily Redeemable Noncontrolling Interest | 12,584 | 12,584 | |||||
Long-Term Debt | 486,242 | 485,719 | |||||
Total Liabilities | 2,055,459 | 1,979,679 | |||||
Redeemable Noncontrolling Interest | 3,779 | 50 | |||||
Preferred Stock | — | — | |||||
Common Stockholders’ Equity | |||||||
Common stock | 20,000 | 20,000 | |||||
Capital in excess of par value | 368,505 | 364,363 | |||||
Retained earnings | 5,648,479 | 5,588,942 | |||||
Accumulated other comprehensive income (loss), net of tax | |||||||
Cumulative foreign currency translation adjustment | 7,778 | (26,998 | ) | ||||
Unrealized gain on available-for-sale securities | 135,753 | 92,931 | |||||
Unrealized gain on pensions and other postretirement plans | 168,070 | 170,830 | |||||
Cash flow hedge | (449 | ) | (277 | ) | |||
Cost of Class B common stock held in treasury | (3,787,459 | ) | (3,756,850 | ) | |||
Total Equity | 2,560,677 | 2,452,941 | |||||
Total Liabilities and Equity | $ | 4,619,915 | $ | 4,432,670 |
Nine Months Ended September 30 | |||||||||||
(in thousands) | 2021 | 2020 | |||||||||
Cash Flows from Operating Activities | |||||||||||
Net Income | $ | 268,244 | $ | 63,025 | |||||||
Adjustments to reconcile net income to net cash provided by operating activities: | |||||||||||
Depreciation, amortization and goodwill and other long-lived asset impairments | 127,261 | 130,568 | |||||||||
Amortization of lease right-of-use asset | 55,246 | 70,214 | |||||||||
Net pension benefit and special separation benefit expense | (68,644) | (27,669) | |||||||||
Gain on marketable equity securities and cost method investments, net | (179,737) | (493) | |||||||||
Gain on disposition and write-down of businesses, property, plant and equipment, investments and other assets, net | (14,406) | (5,918) | |||||||||
Provision for doubtful trade receivables | 4,171 | 8,229 | |||||||||
Stock-based compensation expense, net | 4,686 | 4,758 | |||||||||
Foreign exchange gain | (674) | (877) | |||||||||
Equity in (earnings) losses of affiliates, net of distributions | (11,364) | 2,784 | |||||||||
Provision for (benefit from) deferred income taxes | 43,580 | (733) | |||||||||
Accretion expense and change in fair value of contingent consideration liabilities | (4,325) | — | |||||||||
Change in operating assets and liabilities: | |||||||||||
Accounts receivable, net | (27,350) | 139,306 | |||||||||
Inventories | 21,117 | 51 | |||||||||
Accounts payable and accrued liabilities | (7,979) | (65,708) | |||||||||
Deferred revenue | 33,561 | (26,094) | |||||||||
Income taxes receivable | 10,724 | (190) | |||||||||
Lease liabilities | (61,775) | (67,299) | |||||||||
Other assets and other liabilities, net | 3,192 | 16,791 | |||||||||
Other | 1,743 | 145 | |||||||||
Net Cash Provided by Operating Activities | 197,271 | 240,890 | |||||||||
Cash Flows from Investing Activities | |||||||||||
Investments in certain businesses, net of cash acquired | (272,428) | (20,080) | |||||||||
Purchases of property, plant and equipment | (140,935) | (56,121) | |||||||||
Purchases of marketable equity securities | (48,036) | — | |||||||||
Proceeds from sales of marketable equity securities | 38,308 | 93,775 | |||||||||
Investments in equity affiliates, cost method and other investments | (6,610) | (8,298) | |||||||||
Net proceeds from disposition of businesses, property, plant and equipment, investments and other assets | 8,771 | 1,570 | |||||||||
Return of investment in equity affiliates | 474 | 314 | |||||||||
Other | — | 1,562 | |||||||||
Net Cash (Used in) Provided by Investing Activities | (420,456) | 12,722 | |||||||||
Cash Flows from Financing Activities | |||||||||||
Deferred payments of acquisitions | (30,866) | (5,010) | |||||||||
Dividends paid | (22,659) | (22,870) | |||||||||
Net borrowings under revolving credit facilities | 37,696 | 75,905 | |||||||||
Repayments of borrowings | (16,878) | (75,841) | |||||||||
Issuance of borrowings | 22,684 | 2,084 | |||||||||
Common shares repurchased | (21,840) | (123,155) | |||||||||
Net payments on vehicle floor plan payable | (15,035) | (16,300) | |||||||||
Purchase of noncontrolling interest | (3,508) | — | |||||||||
Proceeds from bank overdrafts | 1,137 | 6,454 | |||||||||
Proceeds from exercise of stock options | — | 5,335 | |||||||||
Other | 1,244 | (276) | |||||||||
Net Cash Used in Financing Activities | (48,025) | (153,674) | |||||||||
Effect of Currency Exchange Rate Change | (2,908) | (2,729) | |||||||||
Net (Decrease) Increase in Cash and Cash Equivalents and Restricted Cash | (274,118) | 97,209 | |||||||||
Beginning Cash and Cash Equivalents and Restricted Cash | 423,054 | 214,044 | |||||||||
Ending Cash and Cash Equivalents and Restricted Cash | $ | 148,936 | $ | 311,253 |
Nine Months Ended September 30 | |||||||
(in thousands) | 2017 | 2016 | |||||
Cash Flows from Operating Activities | |||||||
Net Income | $ | 87,929 | $ | 132,540 | |||
Adjustments to reconcile net income to net cash provided by operating activities: | |||||||
Depreciation, amortization and goodwill and other long-lived asset impairment | 84,351 | 68,063 | |||||
Net pension benefit | (44,281 | ) | (36,714 | ) | |||
Early retirement program expense | 932 | — | |||||
Stock-based compensation expense, net | 7,528 | 10,319 | |||||
Loss (gain) on disposition of businesses, property, plant and equipment, investments and other assets, net | 504 | (62,132 | ) | ||||
Foreign exchange (gain) loss | (6,608 | ) | 33,324 | ||||
Write-down of cost method investments | 200 | 15,161 | |||||
Equity in (earnings) losses of affiliates, net of distributions | (1,434 | ) | 895 | ||||
Provision (benefit) for deferred income taxes | 16,306 | (17,281 | ) | ||||
Change in operating assets and liabilities: | |||||||
Accounts receivable, net | 106,230 | 5,980 | |||||
Accounts payable and accrued liabilities | (63,255 | ) | (38,099 | ) | |||
Deferred revenue | 27,254 | 28,014 | |||||
Income taxes receivable | 14,477 | 27,206 | |||||
Other assets and other liabilities, net | (9,795 | ) | (16,492 | ) | |||
Other | 519 | 671 | |||||
Net Cash Provided by Operating Activities | 220,857 | 151,455 | |||||
Cash Flows from Investing Activities | |||||||
Investments in certain businesses, net of cash acquired | (299,938 | ) | (242,472 | ) | |||
Investments in equity affiliates, cost method and other investments | (66,097 | ) | (4,550 | ) | |||
Purchases of property, plant and equipment | (43,863 | ) | (41,373 | ) | |||
Disbursement of loan to affiliate | (6,771 | ) | (7,730 | ) | |||
Return of investment in equity affiliate | 3,527 | — | |||||
Net proceeds from disposition of businesses, property, plant and equipment, investments and other assets | 2,672 | 36,777 | |||||
Proceeds from sales of marketable equity securities | — | 22,837 | |||||
Purchases of marketable equity securities | — | (48,265 | ) | ||||
Net Cash Used in Investing Activities | (410,470 | ) | (284,776 | ) | |||
Cash Flows from Financing Activities | |||||||
Common shares repurchased | (35,394 | ) | (90,328 | ) | |||
Dividends paid | (21,304 | ) | (20,532 | ) | |||
Repayments of borrowings | (7,712 | ) | — | ||||
Deferred payments of acquisition and noncontrolling interest | (5,187 | ) | — | ||||
Issuance of borrowings | — | 98,610 | |||||
Purchase of noncontrolling interest | — | (21,000 | ) | ||||
Payments of financing costs | — | (648 | ) | ||||
Other | (4,962 | ) | 16,608 | ||||
Net Cash Used in Financing Activities | (74,559 | ) | (17,290 | ) | |||
Effect of Currency Exchange Rate Change | 9,768 | (3,147 | ) | ||||
Net Decrease in Cash and Cash Equivalents and Restricted Cash | (254,404 | ) | (153,758 | ) | |||
Beginning Cash and Cash Equivalents and Restricted Cash | 670,816 | 774,952 | |||||
Ending Cash and Cash Equivalents and Restricted Cash | $ | 416,412 | $ | 621,194 |
(in thousands) | Common Stock | Capital in Excess of Par Value | Retained Earnings | Accumulated Other Comprehensive Income | Treasury Stock | Noncontrolling Interest | Total Equity | Redeemable Noncontrolling Interest | |||||||||||||||||||||
As of December 31, 2020 | $ | 20,000 | $ | 388,159 | $ | 6,804,822 | $ | 603,314 | $ | (4,056,993) | $ | 7,091 | $ | 3,766,393 | $ | 11,928 | |||||||||||||
Net income for the period | 112,635 | 112,635 | |||||||||||||||||||||||||||
Net income attributable to noncontrolling interests | (185) | 185 | — | ||||||||||||||||||||||||||
Change in redemption value of redeemable noncontrolling interests | 697 | 64 | 761 | (634) | |||||||||||||||||||||||||
Distribution to noncontrolling interest | (126) | (126) | |||||||||||||||||||||||||||
Dividends on common stock | (15,106) | (15,106) | |||||||||||||||||||||||||||
Issuance of Class B common stock, net of restricted stock forfeitures | (5,188) | 5,084 | (104) | ||||||||||||||||||||||||||
Amortization of unearned stock compensation and stock option expense | 1,589 | 1,589 | |||||||||||||||||||||||||||
Other comprehensive loss, net of income taxes | (1,203) | (1,203) | |||||||||||||||||||||||||||
Purchase of redeemable noncontrolling interest | — | (3,508) | |||||||||||||||||||||||||||
As of March 31, 2021 | $ | 20,000 | $ | 385,257 | $ | 6,902,166 | $ | 602,111 | $ | (4,051,909) | $ | 7,214 | $ | 3,864,839 | $ | 7,786 | |||||||||||||
Net income for the period | 115,926 | 115,926 | |||||||||||||||||||||||||||
Net income attributable to noncontrolling interests | (699) | 699 | — | ||||||||||||||||||||||||||
Net loss attributable to redeemable noncontrolling interests | 131 | 131 | (131) | ||||||||||||||||||||||||||
Change in redemption value of redeemable noncontrolling interests | 65 | 65 | 65 | ||||||||||||||||||||||||||
Distribution to noncontrolling interest | (152) | (152) | |||||||||||||||||||||||||||
Dividends on common stock | (7,553) | (7,553) | |||||||||||||||||||||||||||
Forfeiture of restricted stock awards, net of Class B common stock issuances | (47) | (49) | (96) | ||||||||||||||||||||||||||
Amortization of unearned stock compensation and stock option expense | 1,672 | 1,672 | |||||||||||||||||||||||||||
Other comprehensive income, net of income taxes | 1,080 | 1,080 | |||||||||||||||||||||||||||
As of June 30, 2021 | $ | 20,000 | $ | 386,882 | $ | 7,009,971 | $ | 603,191 | $ | (4,051,958) | $ | 7,826 | $ | 3,975,912 | $ | 7,720 | |||||||||||||
Net income for the period | 39,683 | 39,683 | |||||||||||||||||||||||||||
Noncontrolling interest capital contribution | 1,750 | 1,750 | |||||||||||||||||||||||||||
Net income attributable to noncontrolling interest | (469) | 469 | — | ||||||||||||||||||||||||||
Net loss attributable to redeemable noncontrolling interests | 372 | 372 | (372) | ||||||||||||||||||||||||||
Change in redemption value of redeemable noncontrolling interests | 64 | 64 | 64 | ||||||||||||||||||||||||||
Distribution to noncontrolling interest | (206) | (206) | |||||||||||||||||||||||||||
Dividends on common stock | (7,496) | (7,496) | |||||||||||||||||||||||||||
Repurchase of Class B common stock | (21,840) | (21,840) | |||||||||||||||||||||||||||
Issuance of Class B common stock, net of restricted stock forfeitures | (188) | 121 | (67) | ||||||||||||||||||||||||||
Amortization of unearned stock compensation and stock option expense | 1,692 | 1,692 | |||||||||||||||||||||||||||
Other comprehensive loss, net of income taxes | (16,126) | (16,126) | |||||||||||||||||||||||||||
As of September 30, 2021 | $ | 20,000 | $ | 388,386 | $ | 7,042,061 | $ | 587,065 | $ | (4,073,677) | $ | 9,903 | $ | 3,973,738 | $ | 7,412 |
(in thousands) | Common Stock | Capital in Excess of Par Value | Retained Earnings | Accumulated Other Comprehensive Income | Treasury Stock | Noncontrolling Interest | Total Equity | Redeemable Noncontrolling Interest | |||||||||||||||||||||
As of December 31, 2019 | $ | 20,000 | $ | 381,669 | $ | 6,534,427 | $ | 303,295 | $ | (3,920,152) | $ | 7,557 | $ | 3,326,796 | $ | 5,655 | |||||||||||||
Net loss for the period | (33,891) | (33,891) | |||||||||||||||||||||||||||
Net loss attributable to noncontrolling interests | 772 | (772) | — | ||||||||||||||||||||||||||
Net income attributable to redeemable noncontrolling interests | (126) | (126) | 126 | ||||||||||||||||||||||||||
Dividends on common stock | (15,289) | (15,289) | |||||||||||||||||||||||||||
Repurchase of Class B common stock | (33,610) | (33,610) | |||||||||||||||||||||||||||
Issuance of Class B common stock | 5,335 | 5,335 | |||||||||||||||||||||||||||
Amortization of unearned stock compensation and stock option expense | 1,568 | 1,568 | |||||||||||||||||||||||||||
Other comprehensive loss, net of income taxes | (37,943) | (37,943) | |||||||||||||||||||||||||||
As of March 31, 2020 | $ | 20,000 | $ | 383,237 | $ | 6,485,893 | $ | 265,352 | $ | (3,948,427) | $ | 6,785 | $ | 3,212,840 | $ | 5,781 | |||||||||||||
Net income for the period | 18,862 | 18,862 | |||||||||||||||||||||||||||
Net loss attributable to noncontrolling interests | 37 | (37) | — | ||||||||||||||||||||||||||
Acquisition of redeemable noncontrolling interest | — | 6,005 | |||||||||||||||||||||||||||
Net income attributable to redeemable noncontrolling interests | (45) | (45) | 45 | ||||||||||||||||||||||||||
Dividends on common stock | (7,581) | (7,581) | |||||||||||||||||||||||||||
Repurchase of Class B common stock | (29,295) | (29,295) | |||||||||||||||||||||||||||
Amortization of unearned stock compensation and stock option expense | 1,567 | 1,567 | |||||||||||||||||||||||||||
Other comprehensive income, net of income taxes | 17,068 | 17,068 | |||||||||||||||||||||||||||
As of June 30, 2020 | $ | 20,000 | $ | 384,804 | $ | 6,497,166 | $ | 282,420 | $ | (3,977,722) | $ | 6,748 | $ | 3,213,416 | $ | 11,831 | |||||||||||||
Net income for the period | 78,054 | 78,054 | |||||||||||||||||||||||||||
Net income attributable to noncontrolling interest | (373) | 373 | — | ||||||||||||||||||||||||||
Net income attributable to redeemable noncontrolling interests | (66) | (66) | 66 | ||||||||||||||||||||||||||
Distribution to noncontrolling interest | (276) | (276) | |||||||||||||||||||||||||||
Dividends on common stock | (7,100) | (7,100) | |||||||||||||||||||||||||||
Repurchase of Class B common stock | (60,250) | (60,250) | |||||||||||||||||||||||||||
Forfeiture of restricted stock awards, net of Class B common stock issuances | (66) | (80) | (146) | ||||||||||||||||||||||||||
Amortization of unearned stock compensation and stock option expense | 1,768 | 1,768 | |||||||||||||||||||||||||||
Other comprehensive income, net of income taxes | 21,263 | 21,263 | |||||||||||||||||||||||||||
Other | (5) | (5) | |||||||||||||||||||||||||||
As of September 30, 2020 | $ | 20,000 | $ | 386,506 | $ | 6,567,676 | $ | 303,683 | $ | (4,038,052) | $ | 6,845 | $ | 3,246,658 | $ | 11,897 |
Nine Months Ended September 30, 2016 | |||||||||||
As | |||||||||||
Previously | As | ||||||||||
(in thousands) | Reported | Adjustment | Adopted | ||||||||
Cash Flows from Operating Activities | |||||||||||
Increase in Restricted Cash | $ | (7,266 | ) | $ | 7,266 | $ | — | ||||
Net Cash Provided by Operating Activities | 144,189 | 7,266 | 151,455 | ||||||||
Net Decrease in Cash and Cash Equivalents and Restricted Cash | (161,024 | ) | 7,266 | (153,758 | ) | ||||||
Cash and Cash Equivalents and Restricted Cash at Beginning of Period | 754,207 | 20,745 | 774,952 | ||||||||
Cash and Cash Equivalents and Restricted Cash at End of Period | 593,183 | 28,011 | 621,194 |
Income from Operations | Non-operating pension and postretirement benefit income | Income Before Income Taxes | |||||||||
(in thousands) | |||||||||||
Three Months Ended September 30, 2017 | |||||||||||
As Reported | $ | 44,571 | $ | — | $ | 38,244 | |||||
Adjustment | (17,621 | ) | 17,621 | — | |||||||
Upon Adoption | 26,950 | 17,621 | 38,244 | ||||||||
Three Months Ended September 30, 2016 | |||||||||||
As Reported | $ | 68,033 | $ | — | $ | 40,926 | |||||
Adjustment | (15,705 | ) | 15,705 | — | |||||||
Upon Adoption | 52,328 | 15,705 | 40,926 | ||||||||
Nine Months Ended September 30, 2017 | |||||||||||
As Reported | $ | 141,986 | $ | — | $ | 127,929 | |||||
Adjustment | (55,042 | ) | 55,042 | — | |||||||
Upon Adoption | 86,944 | 55,042 | 127,929 | ||||||||
Nine Months Ended September 30, 2016 | |||||||||||
As Reported | $ | 194,045 | $ | — | $ | 186,540 | |||||
Adjustment | (46,966 | ) | 46,966 | — | |||||||
Upon Adoption | 147,079 | 46,966 | 186,540 | ||||||||
Twelve Months Ended December 31, 2016 | |||||||||||
As Reported | $ | 303,534 | $ | — | $ | 250,658 | |||||
Adjustment | (80,665 | ) | 80,665 | — | |||||||
Upon Adoption | 222,869 | 80,665 | 250,658 |
As of | |||||||
September 30, 2017 | December 31, 2016 | ||||||
(in thousands) | |||||||
Total cost | $ | 269,343 | $ | 269,343 | |||
Gross unrealized gains | 226,256 | 154,886 | |||||
Total Fair Value | $ | 495,599 | $ | 424,229 |
Purchase Price Allocation | Purchase Price Allocation | |||||||||||||||||
As of | Nine Months Ended | Year Ended | ||||||||||||||||
(in thousands) | September 30, 2017 | December 31, 2016 | (in thousands) | September 30, 2021 | December 31, 2020 | |||||||||||||
Accounts receivable | $ | 12,502 | $ | 8,538 | Accounts receivable | $ | 16,080 | $ | 745 | |||||||||
Inventory | 25,253 | 878 | Inventory | 777 | 3,496 | |||||||||||||
Other current assets | 593 | 1,420 | ||||||||||||||||
Property, plant and equipment | 30,961 | 3,940 | Property, plant and equipment | 6,019 | 3,346 | |||||||||||||
Lease right-of-use assets | Lease right-of-use assets | 7,744 | 6,580 | |||||||||||||||
Goodwill | 143,433 | 184,118 | Goodwill | 167,334 | 73,951 | |||||||||||||
Indefinite-lived intangible assets | 41,600 | 53,110 | ||||||||||||||||
Amortized intangible assets | 158,907 | 28,267 | Amortized intangible assets | 88,000 | 14,589 | |||||||||||||
Pension and other postretirement benefits liabilities | (59,116 | ) | — | |||||||||||||||
Other assets | Other assets | 4,507 | 975 | |||||||||||||||
Deferred income taxes | Deferred income taxes | 40,850 | 15,958 | |||||||||||||||
Other liabilities | (10,822 | ) | (21,892 | ) | Other liabilities | (49,823) | (14,917) | |||||||||||
Deferred income taxes | (34,875 | ) | (11,009 | ) | ||||||||||||||
Current and noncurrent lease liabilities | Current and noncurrent lease liabilities | (7,742) | (6,593) | |||||||||||||||
Redeemable noncontrolling interest | (3,666 | ) | — | Redeemable noncontrolling interest | — | (6,005) | ||||||||||||
Aggregate purchase price, net of cash acquired | $ | 304,770 | $ | 247,370 | Aggregate purchase price, net of cash acquired | $ | 273,746 | $ | 92,125 |
Three Months Ended September 30 | Nine Months Ended September 30 | Three Months Ended September 30 | Nine Months Ended September 30 | |||||||||||||||||||||||||||||||||||
(in thousands) | 2017 | 2016 | 2017 | 2016 | (in thousands) | 2021 | 2020 | 2021 | 2020 | |||||||||||||||||||||||||||||
Operating revenues | $ | 657,225 | $ | 696,767 | $ | 1,979,784 | $ | 2,058,571 | Operating revenues | $ | 809,810 | $ | 780,302 | $ | 2,416,109 | $ | 2,255,760 | |||||||||||||||||||||
Net income | 24,735 | 36,250 | 96,065 | 137,967 | Net income | 40,066 | 75,328 | 257,887 | 38,627 |
As of | |||||||||||
September 30, 2021 | December 31, 2020 | ||||||||||
(in thousands) | |||||||||||
Total cost | $ | 275,825 | $ | 232,847 | |||||||
Gross unrealized gains | 489,191 | 340,255 | |||||||||
Gross unrealized losses | (185) | — | |||||||||
Total Fair Value | $ | 764,831 | $ | 573,102 |
Three Months Ended September 30 | Nine Months Ended September 30 | ||||||||||||||||||||||
(in thousands) | 2021 | 2020 | 2021 | 2020 | |||||||||||||||||||
Gain (loss) on marketable equity securities, net | $ | 14,069 | $ | 59,364 | $ | 176,981 | $ | (1,139) | |||||||||||||||
Less: Net losses (gains) in earnings from marketable equity securities sold and donated | 411 | — | (7,750) | 13,382 | |||||||||||||||||||
Net unrealized gains in earnings from marketable equity securities still held at the end of the period | $ | 14,480 | $ | 59,364 | $ | 169,231 | $ | 12,243 |
As of | |||||||||||
September 30, 2021 | December 31, 2020 | ||||||||||
(in thousands) | |||||||||||
Receivables from contracts with customers, less estimated credit losses of $21,866 and $21,494 | $ | 550,853 | $ | 519,577 | |||||||
Other receivables | 27,739 | 17,579 | |||||||||
$ | 578,592 | $ | 537,156 |
As of | |||||||||||
September 30, 2021 | December 31, 2020 | ||||||||||
(in thousands) | |||||||||||
Accounts payable | $ | 105,143 | $ | 106,215 | |||||||
Accrued compensation and related benefits | 160,062 | 135,493 | |||||||||
Other accrued liabilities | 241,433 | 278,528 | |||||||||
$ | 506,638 | $ | 520,236 |
As of | |||||||||||
September 30, 2021 | December 31, 2020 | ||||||||||
(in thousands) | |||||||||||
Raw materials | $ | 43,045 | $ | 45,382 | |||||||
Work-in-process | 10,873 | 10,402 | |||||||||
Finished goods | 45,311 | 64,061 | |||||||||
Contracts in progress | 1,029 | 777 | |||||||||
$ | 100,258 | $ | 120,622 |
(in thousands) | Education | Television Broadcasting | Other Businesses | Total | (in thousands) | Education | Television Broadcasting | Manufacturing | Healthcare | Automotive | Other Businesses | Total | ||||||||||||||||||||||||||||||||||||||||||||
Balance as of December 31, 2016 | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Balance as of December 31, 2020 | Balance as of December 31, 2020 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||
Goodwill | $ | 1,111,003 | $ | 168,345 | $ | 202,141 | $ | 1,481,489 | Goodwill | $ | 1,183,379 | $ | 190,815 | $ | 234,993 | $ | 98,421 | $ | 39,121 | $ | 91,351 | $ | 1,838,080 | |||||||||||||||||||||||||||||||||
Accumulated impairment losses | (350,850 | ) | — | (7,685 | ) | (358,535 | ) | Accumulated impairment losses | (331,151) | — | (7,616) | — | — | (14,563) | (353,330) | |||||||||||||||||||||||||||||||||||||||||
760,153 | 168,345 | 194,456 | 1,122,954 | 852,228 | 190,815 | 227,377 | 98,421 | 39,121 | 76,788 | 1,484,750 | ||||||||||||||||||||||||||||||||||||||||||||||
Acquisitions | 18,986 | 24,256 | 100,191 | 143,433 | Acquisitions | — | — | — | — | — | 167,334 | 167,334 | ||||||||||||||||||||||||||||||||||||||||||||
Impairment | — | — | (7,616 | ) | (7,616 | ) | Impairment | — | — | (26,686) | — | — | — | (26,686) | ||||||||||||||||||||||||||||||||||||||||||
Dispositions | — | — | (412 | ) | (412 | ) | ||||||||||||||||||||||||||||||||||||||||||||||||||
Foreign currency exchange rate changes | 40,867 | — | — | 40,867 | Foreign currency exchange rate changes | (13,055) | — | — | — | — | — | (13,055) | ||||||||||||||||||||||||||||||||||||||||||||
Balance as of September 30, 2017 | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Balance as of September 30, 2021 | Balance as of September 30, 2021 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||
Goodwill | 1,170,856 | 192,601 | 301,920 | 1,665,377 | Goodwill | 1,170,324 | 190,815 | 234,993 | 98,421 | 39,121 | 258,685 | 1,992,359 | ||||||||||||||||||||||||||||||||||||||||||||
Accumulated impairment losses | (350,850 | ) | — | (15,301 | ) | (366,151 | ) | Accumulated impairment losses | (331,151) | — | (34,302) | — | — | (14,563) | (380,016) | |||||||||||||||||||||||||||||||||||||||||
$ | 820,006 | $ | 192,601 | $ | 286,619 | $ | 1,299,226 | $ | 839,173 | $ | 190,815 | $ | 200,691 | $ | 98,421 | $ | 39,121 | $ | 244,122 | $ | 1,612,343 |
(in thousands) | Higher Education | Test Preparation | Kaplan International | Total | (in thousands) | Kaplan International | Higher Education | Supplemental Education | Total | |||||||||||||||||||||||||||||
Balance as of December 31, 2016 | ||||||||||||||||||||||||||||||||||||||
Balance as of December 31, 2020 | Balance as of December 31, 2020 | |||||||||||||||||||||||||||||||||||||
Goodwill | $ | 389,720 | $ | 166,098 | $ | 555,185 | $ | 1,111,003 | Goodwill | $ | 634,749 | $ | 174,564 | $ | 374,066 | $ | 1,183,379 | |||||||||||||||||||||
Accumulated impairment losses | (248,591 | ) | (102,259 | ) | — | (350,850 | ) | Accumulated impairment losses | — | (111,324) | (219,827) | (331,151) | ||||||||||||||||||||||||||
141,129 | 63,839 | 555,185 | 760,153 | 634,749 | 63,240 | 154,239 | 852,228 | |||||||||||||||||||||||||||||||
Acquisitions | — | — | 18,986 | 18,986 | ||||||||||||||||||||||||||||||||||
Foreign currency exchange rate changes | 154 | — | 40,713 | 40,867 | Foreign currency exchange rate changes | (13,065) | — | 10 | (13,055) | |||||||||||||||||||||||||||||
Balance as of September 30, 2017 | ||||||||||||||||||||||||||||||||||||||
Balance as of September 30, 2021 | Balance as of September 30, 2021 | |||||||||||||||||||||||||||||||||||||
Goodwill | 389,874 | 166,098 | 614,884 | 1,170,856 | Goodwill | 621,684 | 174,564 | 374,076 | 1,170,324 | |||||||||||||||||||||||||||||
Accumulated impairment losses | (248,591 | ) | (102,259 | ) | — | (350,850 | ) | Accumulated impairment losses | — | (111,324) | (219,827) | (331,151) | ||||||||||||||||||||||||||
$ | 141,283 | $ | 63,839 | $ | 614,884 | $ | 820,006 | $ | 621,684 | $ | 63,240 | $ | 154,249 | $ | 839,173 |
As of September 30, 2017 | As of December 31, 2016 | ||||||||||||||||||||||||
(in thousands) | Useful Life Range | Gross Carrying Amount | Accumulated Amortization | Net Carrying Amount | Gross Carrying Amount | Accumulated Amortization | Net Carrying Amount | ||||||||||||||||||
Amortized Intangible Assets | |||||||||||||||||||||||||
Student and customer relationships | 1–10 years (1) | $ | 224,872 | $ | 74,304 | $ | 150,568 | $ | 129,616 | $ | 55,863 | $ | 73,753 | ||||||||||||
Trade names and trademarks | 2–10 years | 58,917 | 33,143 | 25,774 | 55,240 | 29,670 | 25,570 | ||||||||||||||||||
Network affiliation agreements | 15 years | 42,600 | 2,067 | 40,533 | — | — | — | ||||||||||||||||||
Databases and technology | 3–6 years (1) | 19,583 | 4,173 | 15,410 | 5,601 | 4,368 | 1,233 | ||||||||||||||||||
Noncompete agreements | 2–5 years | 2,080 | 1,549 | 531 | 1,730 | 1,404 | 326 | ||||||||||||||||||
Other | 1–8 years | 13,430 | 7,094 | 6,336 | 12,030 | 4,973 | 7,057 | ||||||||||||||||||
$ | 361,482 | $ | 122,330 | $ | 239,152 | $ | 204,217 | $ | 96,278 | $ | 107,939 | ||||||||||||||
Indefinite-Lived Intangible Assets | |||||||||||||||||||||||||
Trade names and trademarks | $ | 82,651 | $ | 65,192 | |||||||||||||||||||||
FCC licenses | 26,600 | — | |||||||||||||||||||||||
Licensure and accreditation | 650 | 834 | |||||||||||||||||||||||
$ | 109,901 | $ | 66,026 |
As of September 30, 2021 | As of December 31, 2020 | ||||||||||||||||||||||||||||||||||||||||
(in thousands) | Useful Life Range | Gross Carrying Amount | Accumulated Amortization | Net Carrying Amount | Gross Carrying Amount | Accumulated Amortization | Net Carrying Amount | ||||||||||||||||||||||||||||||||||
Amortized Intangible Assets | |||||||||||||||||||||||||||||||||||||||||
Student and customer relationships | 2–10 years | $ | 323,569 | $ | 201,297 | $ | 122,272 | $ | 294,077 | $ | 178,075 | $ | 116,002 | ||||||||||||||||||||||||||||
Trade names and trademarks | 2–10 years | 160,411 | 65,551 | 94,860 | 109,809 | 54,766 | 55,043 | ||||||||||||||||||||||||||||||||||
Network affiliation agreements | 10 years | 17,400 | 8,193 | 9,207 | 17,400 | 6,888 | 10,512 | ||||||||||||||||||||||||||||||||||
Databases and technology | 3–6 years | 36,550 | 24,709 | 11,841 | 34,864 | 19,924 | 14,940 | ||||||||||||||||||||||||||||||||||
Noncompete agreements | 2–5 years | 1,000 | 990 | 10 | 1,000 | 937 | 63 | ||||||||||||||||||||||||||||||||||
Other | 1–8 years | 29,800 | 19,744 | 10,056 | 24,800 | 16,714 | 8,086 | ||||||||||||||||||||||||||||||||||
$ | 568,730 | $ | 320,484 | $ | 248,246 | $ | 481,950 | $ | 277,304 | $ | 204,646 | ||||||||||||||||||||||||||||||
Indefinite-Lived Intangible Assets | |||||||||||||||||||||||||||||||||||||||||
Trade names and trademarks | $ | 87,085 | $ | 87,429 | |||||||||||||||||||||||||||||||||||||
Franchise agreements | 21,858 | 21,858 | |||||||||||||||||||||||||||||||||||||||
FCC licenses | 11,000 | 11,000 | |||||||||||||||||||||||||||||||||||||||
Licensure and accreditation | 150 | 150 | |||||||||||||||||||||||||||||||||||||||
$ | 120,093 | $ | 120,437 |
As of | As of | |||||||||||||||||
September 30, 2017 | December 31, 2016 | September 30, 2021 | December 31, 2020 | |||||||||||||||
(in thousands) | (in thousands) | |||||||||||||||||
7.25% unsecured notes due February 1, 2019 (1) | $ | 399,393 | $ | 399,052 | ||||||||||||||
UK Credit facility (2) | 93,450 | 91,316 | ||||||||||||||||
5.75% unsecured notes due June 1, 2026 (1) | 5.75% unsecured notes due June 1, 2026 (1) | $ | 396,649 | $ | 396,112 | |||||||||||||
Revolving credit facility | Revolving credit facility | 122,251 | 74,686 | |||||||||||||||
Commercial note | Commercial note | 23,000 | 25,250 | |||||||||||||||
Pinnacle Bank term loan | Pinnacle Bank term loan | 9,840 | 10,692 | |||||||||||||||
Pinnacle Bank line of credit | Pinnacle Bank line of credit | — | 2,295 | |||||||||||||||
Other indebtedness | 112 | 1,479 | Other indebtedness | 4,149 | 3,520 | |||||||||||||
Total Debt | $ | 492,955 | $ | 491,847 | Total Debt | $ | 555,889 | $ | 512,555 | |||||||||
Less: current portion | (6,713 | ) | (6,128 | ) | Less: current portion | (44,254) | (6,452) | |||||||||||
Total Long-Term Debt | $ | 486,242 | $ | 485,719 | Total Long-Term Debt | $ | 511,635 | $ | 506,103 |
As of September 30, 2017 | As of September 30, 2021 | |||||||||||||||||||||||||||||||||||||
(in thousands) | Level 1 | Level 2 | Level 3 | Total | (in thousands) | Level 1 | Level 2 | Level 3 | Total | |||||||||||||||||||||||||||||
Assets | Assets | |||||||||||||||||||||||||||||||||||||
Money market investments (1) | $ | — | $ | 205,845 | $ | — | $ | 205,845 | ||||||||||||||||||||||||||||||
Marketable equity securities (3) | 495,599 | — | — | 495,599 | ||||||||||||||||||||||||||||||||||
Other current investments (4) | 9,948 | 14,039 | — | 23,987 | ||||||||||||||||||||||||||||||||||
Marketable equity securities (1) | Marketable equity securities (1) | $ | 764,831 | $ | — | $ | — | $ | 764,831 | |||||||||||||||||||||||||||||
Other current investments (2) | Other current investments (2) | 7,184 | 7,058 | — | 14,242 | |||||||||||||||||||||||||||||||||
Total Financial Assets | $ | 505,547 | $ | 219,884 | $ | — | $ | 725,431 | Total Financial Assets | $ | 772,015 | $ | 7,058 | $ | — | $ | 779,073 | |||||||||||||||||||||
Liabilities | Liabilities | |||||||||||||||||||||||||||||||||||||
Deferred compensation plan liabilities (5) | $ | — | $ | 43,575 | $ | — | $ | 43,575 | ||||||||||||||||||||||||||||||
Interest rate swap (6) | — | 595 | — | 595 | ||||||||||||||||||||||||||||||||||
Deferred compensation plan liabilities (3) | Deferred compensation plan liabilities (3) | $ | — | $ | 29,950 | $ | — | $ | 29,950 | |||||||||||||||||||||||||||||
Contingent consideration liabilities (4) | Contingent consideration liabilities (4) | — | — | 12,895 | 12,895 | |||||||||||||||||||||||||||||||||
Interest rate swap (5) | Interest rate swap (5) | — | 1,534 | — | 1,534 | |||||||||||||||||||||||||||||||||
Mandatorily redeemable noncontrolling interest | — | — | 12,584 | 12,584 | — | — | 11,921 | 11,921 | ||||||||||||||||||||||||||||||
Total Financial Liabilities | $ | — | $ | 44,170 | $ | 12,584 | $ | 56,754 | Total Financial Liabilities | $ | — | $ | 31,484 | $ | 24,816 | $ | 56,300 |
As of December 31, 2016 | |||||||||||||||
(in thousands) | Level 1 | Level 2 | Level 3 | Total | |||||||||||
Assets | |||||||||||||||
Money market investments (1) | $ | — | $ | 435,258 | $ | — | $ | 435,258 | |||||||
Commercial paper (2) | 49,882 | — | — | 49,882 | |||||||||||
Marketable equity securities (3) | 424,229 | — | — | 424,229 | |||||||||||
Other current investments (4) | 6,957 | 17,055 | — | 24,012 | |||||||||||
Total Financial Assets | $ | 481,068 | $ | 452,313 | $ | — | $ | 933,381 | |||||||
Liabilities | |||||||||||||||
Deferred compensation plan liabilities (5) | $ | — | $ | 46,300 | $ | — | $ | 46,300 | |||||||
Interest rate swap (6) | — | 365 | — | 365 | |||||||||||
Mandatorily redeemable noncontrolling interest (7) | — | — | 12,584 | 12,584 | |||||||||||
Total Financial Liabilities | $ | — | $ | 46,665 | $ | 12,584 | $ | 59,249 |
As of December 31, 2020 | |||||||||||||||||||||||
(in thousands) | Level 1 | Level 2 | Level 3 | Total | |||||||||||||||||||
Assets | |||||||||||||||||||||||
Money market investments (7) | $ | — | $ | 268,841 | $ | — | $ | 268,841 | |||||||||||||||
Marketable equity securities (1) | 573,102 | — | — | 573,102 | |||||||||||||||||||
Other current investments (2) | 10,397 | 4,083 | — | 14,480 | |||||||||||||||||||
Total Financial Assets | $ | 583,499 | $ | 272,924 | $ | — | $ | 856,423 | |||||||||||||||
Liabilities | |||||||||||||||||||||||
Deferred compensation plan liabilities (3) | $ | — | $ | 31,178 | $ | — | $ | 31,178 | |||||||||||||||
Contingent consideration liabilities (4) | — | — | 37,174 | 37,174 | |||||||||||||||||||
Interest rate swap (5) | — | 2,342 | — | 2,342 | |||||||||||||||||||
Foreign exchange swap (8) | — | 259 | — | 259 | |||||||||||||||||||
Mandatorily redeemable noncontrolling interest (6) | — | — | 9,240 | 9,240 | |||||||||||||||||||
Total Financial Liabilities | $ | — | $ | 33,779 | $ | 46,414 | $ | 80,193 |
(1) |
The Company’s investments in marketable equity securities are |
held in common shares of U.S. and Canadian corporations that are actively traded on U.S. and Canadian stock exchanges. Price quotes for these shares are readily available. | |||||
Includes U.S. Government Securities, corporate bonds, mutual funds and time deposits. These investments are valued using a market approach based on the quoted market prices of the security or inputs that include quoted market prices for similar instruments and are classified as either Level 1 or Level 2 in the |
Includes Graham Holdings Company’s Deferred Compensation Plan and supplemental savings plan benefits under the Graham Holdings Company’s Supplemental Executive Retirement Plan, which are included in accrued compensation and related benefits. These plans measure the market value of a participant’s balance in a notional investment account that is comprised primarily of mutual funds, which are based on observable market prices. However, since the deferred compensation obligations are not exchanged in an active market, they are classified as Level 2 in the fair value hierarchy. Realized and unrealized gains (losses) on deferred compensation are included in operating income. |
Included in Accounts payable and accrued liabilities and Other Liabilities. The Company determined the fair value of the contingent consideration liabilities using either a Monte Carlo simulation or probability-weighted analysis depending on the type of target included in the contingent consideration requirements (revenue, EBITDA, client retention). All analyses included estimated financial projections for the acquired businesses and acquisition-specific discount rates. | |||||
(5) | Included in Other Liabilities. The Company utilized a market approach model using the notional amount of the interest rate swap multiplied by the observable inputs of time to maturity and market interest rates. |
The fair value of the mandatorily redeemable noncontrolling interest is based on | |||||
(7) | The Company’s money market investments are included in cash and cash equivalents and the value considers the liquidity of the counterparty. | ||||
(8) | Included in Accounts payable and accrued liabilities, and valued based on a valuation model that calculates the differential between the contract price and the market-based forward rate. |
(in thousands) | Contingent consideration liabilities | Mandatorily redeemable noncontrolling interest | |||||||||
As of December 31, 2020 | $ | 37,174 | $ | 9,240 | |||||||
Changes in fair value (1) | (5,482) | 2,703 | |||||||||
Capital contributions | — | 50 | |||||||||
Accretion of value included in net income (1) | 1,157 | — | |||||||||
Settlements or distributions | (19,942) | (72) | |||||||||
Foreign currency exchange rate changes | (12) | — | |||||||||
As of September 30, 2021 | $ | 12,895 | $ | 11,921 |
(1) | Changes in fair |
As of | ||||||||||||||
September 30, 2021 | December 31, 2020 | % | ||||||||||||
(in thousands) | Change | |||||||||||||
Deferred revenue | $ | 376,803 | $ | 343,322 | 10 |
(in thousands) | Balance at Beginning of Period | Costs associated with new contracts | Less: Costs amortized during the period | Other | Balance at End of Period | ||||||||||||||||||||||||
2021 | $ | 24,363 | $ | 23,907 | $ | (33,903) | $ | 978 | $ | 15,345 | |||||||||||||||||||
Three Months Ended September 30 | Nine Months Ended September 30 | Three Months Ended September 30 | Nine Months Ended September 30 | |||||||||||||||||||||||||||||||||||
(in thousands, except per share amounts) | 2017 | 2016 | 2017 | 2016 | (in thousands, except per share amounts) | 2021 | 2020 | 2021 | 2020 | |||||||||||||||||||||||||||||
Numerator: | Numerator: | |||||||||||||||||||||||||||||||||||||
Numerator for basic earnings per share: | Numerator for basic earnings per share: | |||||||||||||||||||||||||||||||||||||
Net income attributable to Graham Holdings Company common stockholders | $ | 24,784 | $ | 33,126 | $ | 87,866 | $ | 131,672 | Net income attributable to Graham Holdings Company common stockholders | $ | 39,586 | $ | 77,615 | $ | 267,394 | $ | 63,224 | |||||||||||||||||||||
Less: Dividends paid-common stock outstanding and unvested restricted shares | (7,047 | ) | (6,796 | ) | (28,329 | ) | (27,329 | ) | Less: Dividends paid-common stock outstanding and unvested restricted shares | (7,496) | (7,100) | (30,155) | (29,970) | |||||||||||||||||||||||||
Undistributed earnings | 17,737 | 26,330 | 59,537 | 104,343 | Undistributed earnings | 32,090 | 70,515 | 237,239 | 33,254 | |||||||||||||||||||||||||||||
Percent allocated to common stockholders | 99.07 | % | 98.70 | % | 99.07 | % | 98.70 | % | Percent allocated to common stockholders | 99.32 | % | 99.43 | % | 99.32 | % | 99.43 | % | |||||||||||||||||||||
17,572 | 25,987 | 58,981 | 102,987 | 31,872 | 70,116 | 235,633 | 33,066 | |||||||||||||||||||||||||||||||
Add: Dividends paid-common stock outstanding | 6,981 | 6,708 | 28,066 | 26,976 | Add: Dividends paid-common stock outstanding | 7,447 | 7,059 | 29,953 | 29,806 | |||||||||||||||||||||||||||||
Numerator for basic earnings per share | $ | 24,553 | $ | 32,695 | $ | 87,047 | $ | 129,963 | Numerator for basic earnings per share | $ | 39,319 | $ | 77,175 | $ | 265,586 | $ | 62,872 | |||||||||||||||||||||
Add: Additional undistributed earnings due to dilutive stock options | 1 | 2 | 4 | 7 | Add: Additional undistributed earnings due to dilutive stock options | 1 | 1 | 5 | 1 | |||||||||||||||||||||||||||||
Numerator for diluted earnings per share | $ | 24,554 | $ | 32,697 | $ | 87,051 | $ | 129,970 | Numerator for diluted earnings per share | $ | 39,320 | $ | 77,176 | $ | 265,591 | $ | 62,873 | |||||||||||||||||||||
Denominator: | Denominator: | |||||||||||||||||||||||||||||||||||||
Denominator for basic earnings per share: | Denominator for basic earnings per share: | |||||||||||||||||||||||||||||||||||||
Weighted average shares outstanding | 5,518 | 5,544 | 5,530 | 5,570 | Weighted average shares outstanding | 4,961 | 5,060 | 4,966 | 5,176 | |||||||||||||||||||||||||||||
Add: Effect of dilutive stock options | 36 | 30 | 37 | 30 | Add: Effect of dilutive stock options | 16 | 12 | 14 | 16 | |||||||||||||||||||||||||||||
Denominator for diluted earnings per share | 5,554 | 5,574 | 5,567 | 5,600 | Denominator for diluted earnings per share | 4,977 | 5,072 | 4,980 | 5,192 | |||||||||||||||||||||||||||||
Graham Holdings Company Common Stockholders: | Graham Holdings Company Common Stockholders: | |||||||||||||||||||||||||||||||||||||
Basic earnings per share | $ | 4.45 | $ | 5.90 | $ | 15.74 | $ | 23.33 | Basic earnings per share | $ | 7.93 | $ | 15.25 | $ | 53.49 | $ | 12.15 | |||||||||||||||||||||
Diluted earnings per share | $ | 4.42 | $ | 5.87 | $ | 15.64 | $ | 23.21 | Diluted earnings per share | $ | 7.90 | $ | 15.22 | $ | 53.33 | $ | 12.11 |
Three Months Ended September 30 | Nine Months Ended September 30 | Three Months Ended September 30 | Nine Months Ended September 30 | |||||||||||||||||||||||||||||||
(in thousands) | 2017 | 2016 | 2017 | 2016 | (in thousands) | 2021 | 2020 | 2021 | 2020 | |||||||||||||||||||||||||
Weighted average restricted stock | 30 | 42 | 29 | 40 | Weighted average restricted stock | 14 | 12 | 11 | 11 |
Three Months Ended September 30 | Nine Months Ended September 30 | Three Months Ended September 30 | Nine Months Ended September 30 | |||||||||||||||||||||||||||||||||||
(in thousands) | 2017 | 2016 | 2017 | 2016 | (in thousands) | 2021 | 2020 | 2021 | 2020 | |||||||||||||||||||||||||||||
Service cost | $ | 4,591 | $ | 5,040 | $ | 14,096 | $ | 15,422 | Service cost | $ | 5,775 | $ | 5,457 | $ | 17,254 | $ | 17,044 | |||||||||||||||||||||
Interest cost | 11,980 | 12,845 | 35,945 | 38,763 | Interest cost | 6,754 | 8,139 | 20,162 | 24,448 | |||||||||||||||||||||||||||||
Expected return on assets | (30,338 | ) | (30,348 | ) | (91,078 | ) | (91,122 | ) | Expected return on assets | (34,800) | (28,347) | (103,078) | (85,081) | |||||||||||||||||||||||||
Amortization of prior service cost | 42 | 74 | 128 | 223 | Amortization of prior service cost | 711 | 708 | 2,134 | 2,123 | |||||||||||||||||||||||||||||
Recognized actuarial gain | (1,039 | ) | — | (3,372 | ) | — | Recognized actuarial gain | (1,671) | — | (6,234) | — | |||||||||||||||||||||||||||
Net Periodic Benefit | (14,764 | ) | (12,389 | ) | (44,281 | ) | (36,714 | ) | Net Periodic Benefit | (23,231) | (14,043) | (69,762) | (41,466) | |||||||||||||||||||||||||
Special separation benefit expense | 932 | — | 932 | — | Special separation benefit expense | — | 7,783 | 1,118 | 13,797 | |||||||||||||||||||||||||||||
Total Benefit | $ | (13,832 | ) | $ | (12,389 | ) | $ | (43,349 | ) | $ | (36,714 | ) | Total Benefit | $ | (23,231) | $ | (6,260) | $ | (68,644) | $ | (27,669) |
Three Months Ended September 30 | Nine Months Ended September 30 | Three Months Ended September 30 | Nine Months Ended September 30 | |||||||||||||||||||||||||||||||||||
(in thousands) | 2017 | 2016 | 2017 | 2016 | (in thousands) | 2021 | 2020 | 2021 | 2020 | |||||||||||||||||||||||||||||
Service cost | $ | 214 | $ | 246 | $ | 643 | $ | 738 | Service cost | $ | 256 | $ | 238 | $ | 767 | $ | 715 | |||||||||||||||||||||
Interest cost | 1,059 | 1,096 | 3,175 | 3,288 | Interest cost | 736 | 920 | 2,207 | 2,759 | |||||||||||||||||||||||||||||
Amortization of prior service cost | 114 | 114 | 342 | 342 | Amortization of prior service cost | 83 | 83 | 248 | 248 | |||||||||||||||||||||||||||||
Recognized actuarial loss | 444 | 665 | 1,331 | 1,995 | Recognized actuarial loss | 1,482 | 1,316 | 4,447 | 3,950 | |||||||||||||||||||||||||||||
Net Periodic Cost | $ | 1,831 | $ | 2,121 | $ | 5,491 | $ | 6,363 | Net Periodic Cost | $ | 2,557 | $ | 2,557 | $ | 7,669 | $ | 7,672 |
As of | As of | |||||||||||||||
September 30, 2017 | December 31, 2016 | September 30, 2021 | December 31, 2020 | |||||||||||||
U.S. equities | 51 | % | 53 | % | U.S. equities | 60 | % | 58 | % | |||||||
Private investment fund | Private investment fund | 18 | % | 18 | % | |||||||||||
U.S. stock index fund | 32 | % | 30 | % | U.S. stock index fund | 9 | % | 9 | % | |||||||
International equities | International equities | 9 | % | 8 | % | |||||||||||
U.S. fixed income | 11 | % | 11 | % | U.S. fixed income | 4 | % | 7 | % | |||||||
International equities | 6 | % | 6 | % | ||||||||||||
100 | % | 100 | % | 100 | % | 100 | % |
Three Months Ended September 30 | Nine Months Ended September 30 | ||||||||||||||||||||||
(in thousands) | 2021 | 2020 | 2021 | 2020 | |||||||||||||||||||
Interest cost | $ | 23 | $ | 41 | $ | 69 | $ | 125 | |||||||||||||||
Amortization of prior service credit | (1) | (120) | (5) | (361) | |||||||||||||||||||
Recognized actuarial gain | (877) | (1,012) | (2,632) | (3,036) | |||||||||||||||||||
Net Periodic Benefit | $ | (855) | $ | (1,091) | $ | (2,568) | $ | (3,272) | |||||||||||||||
Three Months Ended September 30 | Nine Months Ended September 30 | ||||||||||||||
(in thousands) | 2017 | 2016 | 2017 | 2016 | |||||||||||
Service cost | $ | 257 | $ | 346 | $ | 771 | $ | 1,039 | |||||||
Interest cost | 195 | 308 | 584 | 923 | |||||||||||
Amortization of prior service credit | (38 | ) | (83 | ) | (112 | ) | (251 | ) | |||||||
Recognized actuarial gain | (972 | ) | (376 | ) | (2,917 | ) | (1,127 | ) | |||||||
Net Periodic (Benefit) Cost | $ | (558 | ) | $ | 195 | $ | (1,674 | ) | $ | 584 |
Three Months Ended September 30 | Nine Months Ended September 30 | ||||||||||||||
(in thousands) | 2017 | 2016 | 2017 | 2016 | |||||||||||
Foreign currency gain (loss), net | $ | 1,414 | $ | (3,797 | ) | $ | 6,608 | $ | (33,324 | ) | |||||
(Loss) gain on sales of businesses | — | — | (342 | ) | 18,931 | ||||||||||
Loss on write-downs of cost method investments | (200 | ) | (15,000 | ) | (200 | ) | (15,161 | ) | |||||||
Gain on sale of land | — | — | — | 34,072 | |||||||||||
Gain on sales of marketable equity securities (see Note 2) | — | — | — | 6,256 | |||||||||||
Gain on the formation of a joint venture | — | — | — | 3,232 | |||||||||||
Other, net | 749 | 572 | 815 | 1,865 | |||||||||||
Total Other Non-Operating Income (Expense) | $ | 1,963 | $ | (18,225 | ) | $ | 6,881 | $ | 15,871 |
Three Months Ended September 30 | Nine Months Ended September 30 | ||||||||||||||||||||||
(in thousands) | 2021 | 2020 | 2021 | 2020 | |||||||||||||||||||
Gain on cost method investments | $ | — | $ | 1,638 | $ | 10,506 | $ | 4,209 | |||||||||||||||
Gain on sale of cost method investments | — | 521 | 6,793 | 1,039 | |||||||||||||||||||
Gain on sale of businesses | 1,303 | 755 | 2,749 | 2,515 | |||||||||||||||||||
Foreign currency (loss) gain, net | (6) | (2,343) | 674 | 877 | |||||||||||||||||||
Gain on acquiring a controlling interest in an equity affiliate | — | — | — | 3,708 | |||||||||||||||||||
Impairment of cost method investments | — | — | — | (2,577) | |||||||||||||||||||
Gain on sale of equity affiliates | — | — | — | 1,370 | |||||||||||||||||||
Other gain (loss), net | 3,921 | (349) | 6,938 | (131) | |||||||||||||||||||
Total Other Non-Operating Income | $ | 5,218 | $ | 222 | $ | 27,660 | $ | 11,010 |
Three Months Ended September 30 | |||||||||||||||||||||||
2017 | 2016 | ||||||||||||||||||||||
Before-Tax | Income | After-Tax | Before-Tax | Income | After-Tax | ||||||||||||||||||
(in thousands) | Amount | Tax | Amount | Amount | Tax | Amount | |||||||||||||||||
Foreign currency translation adjustments: | |||||||||||||||||||||||
Translation adjustments arising during the period | $ | 11,470 | $ | — | $ | 11,470 | $ | (353 | ) | $ | — | $ | (353 | ) | |||||||||
Unrealized gains on available-for-sale securities: | |||||||||||||||||||||||
Unrealized gains for the period, net | 47,836 | (19,134 | ) | 28,702 | 12,154 | (4,862 | ) | 7,292 | |||||||||||||||
Pension and other postretirement plans: | |||||||||||||||||||||||
Amortization of net prior service cost included in net income | 118 | (47 | ) | 71 | 105 | (41 | ) | 64 | |||||||||||||||
Amortization of net actuarial (gain) loss included in net income | (1,567 | ) | 627 | (940 | ) | 289 | (116 | ) | 173 | ||||||||||||||
(1,449 | ) | 580 | (869 | ) | 394 | (157 | ) | 237 | |||||||||||||||
Cash flow hedge: | |||||||||||||||||||||||
(Loss) gain for the period | (72 | ) | 14 | (58 | ) | 49 | (20 | ) | 29 | ||||||||||||||
Other Comprehensive Income | $ | 57,785 | $ | (18,540 | ) | $ | 39,245 | $ | 12,244 | $ | (5,039 | ) | $ | 7,205 |
Nine Months Ended September 30 | Three Months Ended September 30 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||
2017 | 2016 | 2021 | 2020 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||
Before-Tax | Income | After-Tax | Before-Tax | Income | After-Tax | Before-Tax | Income | After-Tax | Before-Tax | Income | After-Tax | |||||||||||||||||||||||||||||||||||||||||||||||
(in thousands) | Amount | Tax | Amount | Amount | Tax | Amount | (in thousands) | Amount | Tax | Amount | Amount | Tax | Amount | |||||||||||||||||||||||||||||||||||||||||||||
Foreign currency translation adjustments: | Foreign currency translation adjustments: | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Translation adjustments arising during the period | $ | 34,776 | $ | — | $ | 34,776 | $ | (1,629 | ) | $ | — | $ | (1,629 | ) | Translation adjustments arising during the period | $ | (16,033) | $ | — | $ | (16,033) | $ | 20,430 | $ | — | $ | 20,430 | |||||||||||||||||||||||||||||||
Unrealized gains on available-for-sale securities: | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Unrealized gains for the period, net | 71,370 | (28,548 | ) | 42,822 | 7,190 | (2,876 | ) | 4,314 | ||||||||||||||||||||||||||||||||||||||||||||||||||
Reclassification of realized gain on sale of available-for-sale securities included in net income | — | — | — | (6,256 | ) | 2,502 | (3,754 | ) | ||||||||||||||||||||||||||||||||||||||||||||||||||
71,370 | (28,548 | ) | 42,822 | 934 | (374 | ) | 560 | |||||||||||||||||||||||||||||||||||||||||||||||||||
Pension and other postretirement plans: | Pension and other postretirement plans: | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Amortization of net prior service cost included in net income | 358 | (143 | ) | 215 | 314 | (125 | ) | 189 | Amortization of net prior service cost included in net income | 793 | (188) | 605 | 671 | (180) | 491 | |||||||||||||||||||||||||||||||||||||||||||
Amortization of net actuarial (gain) loss included in net income | (4,958 | ) | 1,983 | (2,975 | ) | 868 | (347 | ) | 521 | Amortization of net actuarial (gain) loss included in net income | (1,066) | 238 | (828) | 304 | (83) | 221 | ||||||||||||||||||||||||||||||||||||||||||
(4,600 | ) | 1,840 | (2,760 | ) | 1,182 | (472 | ) | 710 | ||||||||||||||||||||||||||||||||||||||||||||||||||
Cash flow hedge: | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
(Loss) gain for the period | (215 | ) | 43 | (172 | ) | 49 | (20 | ) | 29 | |||||||||||||||||||||||||||||||||||||||||||||||||
Other Comprehensive Income | $ | 101,331 | $ | (26,665 | ) | $ | 74,666 | $ | 536 | $ | (866 | ) | $ | (330 | ) | |||||||||||||||||||||||||||||||||||||||||||
(273) | 50 | (223) | 975 | (263) | 712 | |||||||||||||||||||||||||||||||||||||||||||||||||||||
Cash flow hedges: | Cash flow hedges: | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Gain for the period | Gain for the period | 169 | (39) | 130 | 157 | (36) | 121 | |||||||||||||||||||||||||||||||||||||||||||||||||||
Other Comprehensive (Loss) Income | Other Comprehensive (Loss) Income | $ | (16,137) | $ | 11 | $ | (16,126) | $ | 21,562 | $ | (299) | $ | 21,263 |
Nine Months Ended September 30 | |||||||||||||||||||||||||||||||||||
2021 | 2020 | ||||||||||||||||||||||||||||||||||
Before-Tax | Income | After-Tax | Before-Tax | Income | After-Tax | ||||||||||||||||||||||||||||||
(in thousands) | Amount | Tax | Amount | Amount | Tax | Amount | |||||||||||||||||||||||||||||
Foreign currency translation adjustments: | |||||||||||||||||||||||||||||||||||
Translation adjustments arising during the period | $ | (15,352) | $ | — | $ | (15,352) | $ | (541) | $ | — | $ | (541) | |||||||||||||||||||||||
Pension and other postretirement plans: | |||||||||||||||||||||||||||||||||||
Amortization of net prior service cost included in net income | 2,377 | (615) | 1,762 | 2,010 | (542) | 1,468 | |||||||||||||||||||||||||||||
Amortization of net actuarial (gain) loss included in net income | (4,419) | 1,143 | (3,276) | 914 | (247) | 667 | |||||||||||||||||||||||||||||
(2,042) | 528 | (1,514) | 2,924 | (789) | 2,135 | ||||||||||||||||||||||||||||||
Cash flow hedges: | |||||||||||||||||||||||||||||||||||
Gain (loss) for the period | 803 | (186) | 617 | (1,564) | 358 | (1,206) | |||||||||||||||||||||||||||||
Other Comprehensive (Loss) Income | $ | (16,591) | $ | 342 | $ | (16,249) | $ | 819 | $ | (431) | $ | 388 |
(in thousands, net of taxes) | Cumulative Foreign Currency Translation Adjustment | Unrealized Gain on Pensions and Other Postretirement Plans | Cash Flow Hedges | Accumulated Other Comprehensive Income | |||||||||||||||||||||||||
Balance as of December 31, 2020 | $ | 9,754 | $ | 595,287 | $ | (1,727) | $ | 603,314 | |||||||||||||||||||||
Other comprehensive (loss) income before reclassifications | (15,352) | — | 161 | (15,191) | |||||||||||||||||||||||||
Net amount reclassified from accumulated other comprehensive income (loss) | — | (1,514) | 456 | (1,058) | |||||||||||||||||||||||||
Other comprehensive (loss) income, net of tax | (15,352) | (1,514) | 617 | (16,249) | |||||||||||||||||||||||||
Balance as of September 30, 2021 | $ | (5,598) | $ | 593,773 | $ | (1,110) | $ | 587,065 |
(in thousands, net of taxes) | Cumulative Foreign Currency Translation Adjustment | Unrealized Gain on Available-for- Sale Securities | Unrealized Gain on Pensions and Other Postretirement Plans | Cash Flow Hedge | Accumulated Other Comprehensive Income | ||||||||||||||
Balance as of December 31, 2016 | $ | (26,998 | ) | $ | 92,931 | $ | 170,830 | $ | (277 | ) | $ | 236,486 | |||||||
Other comprehensive income (loss) before reclassifications | 34,776 | 42,822 | — | (270 | ) | 77,328 | |||||||||||||
Net amount reclassified from accumulated other comprehensive income (loss) | — | — | (2,760 | ) | 98 | (2,662 | ) | ||||||||||||
Other comprehensive income (loss), net of tax | 34,776 | 42,822 | (2,760 | ) | (172 | ) | 74,666 | ||||||||||||
Balance as of September 30, 2017 | $ | 7,778 | $ | 135,753 | $ | 168,070 | $ | (449 | ) | $ | 311,152 |
Three Months Ended September 30 | Nine Months Ended September 30 | Affected Line Item in the Condensed Consolidated Statement of Operations | |||||||||||||||
(in thousands) | 2017 | 2016 | 2017 | 2016 | |||||||||||||
Unrealized Gains on Available-for-sale Securities: | |||||||||||||||||
Realized gain for the period | $ | — | $ | — | $ | — | $ | (6,256 | ) | Other income (expense), net | |||||||
— | — | — | 2,502 | Provision for Income Taxes | |||||||||||||
— | — | — | (3,754 | ) | Net of Tax | ||||||||||||
Pension and Other Postretirement Plans: | |||||||||||||||||
Amortization of net prior service cost | 118 | 105 | 358 | 314 | (1) | ||||||||||||
Amortization of net actuarial (gain) loss | (1,567 | ) | 289 | (4,958 | ) | 868 | (1) | ||||||||||
(1,449 | ) | 394 | (4,600 | ) | 1,182 | Before tax | |||||||||||
580 | (157 | ) | 1,840 | (472 | ) | Provision for Income Taxes | |||||||||||
(869 | ) | 237 | (2,760 | ) | 710 | Net of Tax | |||||||||||
Cash Flow Hedge | |||||||||||||||||
51 | (3 | ) | 123 | (3 | ) | Interest expense | |||||||||||
(11 | ) | 1 | (25 | ) | 1 | Provision for Income Taxes | |||||||||||
40 | (2 | ) | 98 | (2 | ) | Net of Tax | |||||||||||
Total reclassification for the period | $ | (829 | ) | $ | 235 | $ | (2,662 | ) | $ | (3,046 | ) | Net of Tax |
Three Months Ended September 30 | Nine Months Ended September 30 | Affected Line Item in the Condensed Consolidated Statements of Operations | |||||||||||||||||||||||||||
(in thousands) | 2021 | 2020 | 2021 | 2020 | |||||||||||||||||||||||||
Pension and Other Postretirement Plans: | |||||||||||||||||||||||||||||
Amortization of net prior service cost | $ | 793 | $ | 671 | $ | 2,377 | $ | 2,010 | (1) | ||||||||||||||||||||
Amortization of net actuarial (gain) loss | (1,066) | 304 | (4,419) | 914 | (1) | ||||||||||||||||||||||||
(273) | 975 | (2,042) | 2,924 | Before tax | |||||||||||||||||||||||||
50 | (263) | 528 | (789) | (Benefit from) Provision for Income Taxes | |||||||||||||||||||||||||
(223) | 712 | (1,514) | 2,135 | Net of Tax | |||||||||||||||||||||||||
Cash Flow Hedges | |||||||||||||||||||||||||||||
149 | 166 | 456 | 313 | Interest expense | |||||||||||||||||||||||||
— | — | — | 13 | (Benefit from) Provision for Income Taxes | |||||||||||||||||||||||||
149 | 166 | 456 | 326 | Net of Tax | |||||||||||||||||||||||||
Total reclassification for the period | $ | (74) | $ | 878 | $ | (1,058) | $ | 2,461 | Net of Tax |
Three Months Ended September 30, 2020 | |||||||||||||||||||||||||||||
(in thousands) | Kaplan International | Higher Education | Supplemental Education | Kaplan Corporate | Total Education | Other Businesses | Total | ||||||||||||||||||||||
Severance (1) | $ | 959 | $ | — | $ | 913 | $ | — | $ | 1,872 | $ | — | $ | 1,872 | |||||||||||||||
Impairment of other long-lived assets: | |||||||||||||||||||||||||||||
Lease right-of-use assets | — | — | 1,710 | — | 1,710 | — | 1,710 | ||||||||||||||||||||||
Property, plant and equipment | — | — | 206 | — | 206 | — | 206 | ||||||||||||||||||||||
Non-operating pension and postretirement benefit income, net | — | 802 | 6,287 | 694 | 7,783 | — | 7,783 | ||||||||||||||||||||||
Total Restructuring Related Costs | $ | 959 | $ | 802 | $ | 9,116 | $ | 694 | $ | 11,571 | $ | — | $ | 11,571 | |||||||||||||||
Nine Months Ended September 30, 2020 | |||||||||||||||||||||||||||||
(in thousands) | Kaplan International | Higher Education | Supplemental Education | Kaplan Corporate | Total Education | Other Businesses | Total | ||||||||||||||||||||||
Severance | $ | 2,183 | $ | — | $ | 913 | $ | — | $ | 3,096 | $ | — | $ | 3,096 | |||||||||||||||
Facility related costs: | |||||||||||||||||||||||||||||
Operating lease cost | 2,418 | 3,442 | 3,296 | — | 9,156 | — | 9,156 | ||||||||||||||||||||||
Accelerated depreciation of property, plant and equipment | 1,472 | 95 | 1,801 | — | 3,368 | — | 3,368 | ||||||||||||||||||||||
Total Restructuring Costs Included in Segment Income (Loss) from Operations (1) | $ | 6,073 | $ | 3,537 | $ | 6,010 | $ | — | $ | 15,620 | $ | — | $ | 15,620 | |||||||||||||||
Impairment of other long-lived assets: | |||||||||||||||||||||||||||||
Lease right-of-use assets | 3,790 | 2,062 | 3,908 | — | 9,760 | 1,405 | 11,165 | ||||||||||||||||||||||
Property, plant and equipment | 1,199 | 174 | 803 | — | 2,176 | 86 | 2,262 | ||||||||||||||||||||||
Non-operating pension and postretirement benefit income, net | 1,100 | 2,233 | 8,582 | 883 | 12,798 | 999 | 13,797 | ||||||||||||||||||||||
Total Restructuring Related Costs | $ | 12,162 | $ | 8,006 | $ | 19,303 | $ | 883 | $ | 40,354 | $ | 2,490 | $ | 42,844 |
Three months ended | Nine months ended | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
September 30 | September 30 | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
(in thousands) | 2021 | 2020 | 2021 | 2020 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||
Operating Revenues | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Education | $ | 335,999 | $ | 302,467 | $ | 1,005,300 | $ | 992,020 | |||||||||||||||||||||||||||||||||||||||||||||||||||
Television broadcasting | 126,498 | 133,828 | 360,089 | 350,038 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||
Manufacturing | 99,766 | 106,690 | 356,849 | 303,387 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||
Healthcare | 55,445 | 51,426 | 160,184 | 146,601 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||
Automotive | 84,702 | 76,790 | 242,702 | 182,288 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||
Other businesses | 107,539 | 46,306 | 199,477 | 128,953 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||
Corporate office | — | — | — | — | |||||||||||||||||||||||||||||||||||||||||||||||||||||||
Intersegment elimination | (513) | (525) | (1,558) | (1,177) | |||||||||||||||||||||||||||||||||||||||||||||||||||||||
$ | 809,436 | $ | 716,982 | $ | 2,323,043 | $ | 2,102,110 | ||||||||||||||||||||||||||||||||||||||||||||||||||||
Income (Loss) from Operations before Amortization of Intangible Assets and Impairment of Goodwill and Other Long-Lived Assets | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Education | $ | 13,869 | $ | 9,584 | $ | 57,238 | $ | 45,022 | |||||||||||||||||||||||||||||||||||||||||||||||||||
Television broadcasting | 41,911 | 54,105 | 113,212 | 116,229 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||
Manufacturing | (6,942) | 11,838 | 27,990 | 30,982 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||
Healthcare | 6,016 | 8,965 | 23,312 | 23,569 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||
Automotive | 4,506 | 1,986 | 8,815 | 69 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||
Other businesses | (19,752) | (17,429) | (57,533) | (54,864) | |||||||||||||||||||||||||||||||||||||||||||||||||||||||
Corporate office | (13,481) | (12,739) | (42,831) | (34,331) | |||||||||||||||||||||||||||||||||||||||||||||||||||||||
$ | 26,127 | $ | 56,310 | $ | 130,203 | $ | 126,676 | ||||||||||||||||||||||||||||||||||||||||||||||||||||
Amortization of Intangible Assets and Impairment of Goodwill and Other Long-Lived Assets | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Education | $ | 3,955 | $ | 6,251 | $ | 15,240 | $ | 24,743 | |||||||||||||||||||||||||||||||||||||||||||||||||||
Television broadcasting | 1,361 | 1,360 | 4,081 | 4,081 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||
Manufacturing | 32,541 | 6,987 | 46,138 | 21,112 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||
Healthcare | 756 | 823 | 2,317 | 3,440 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||
Automotive | — | — | — | 6,698 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||
Other businesses | 4,121 | 645 | 7,599 | 12,396 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||
Corporate office | — | — | — | — | |||||||||||||||||||||||||||||||||||||||||||||||||||||||
$ | 42,734 | $ | 16,066 | $ | 75,375 | $ | 72,470 | ||||||||||||||||||||||||||||||||||||||||||||||||||||
Income (Loss) from Operations | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Education | $ | 9,914 | $ | 3,333 | $ | 41,998 | $ | 20,279 | |||||||||||||||||||||||||||||||||||||||||||||||||||
Television broadcasting | 40,550 | 52,745 | 109,131 | 112,148 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||
Manufacturing | (39,483) | 4,851 | (18,148) | 9,870 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||
Healthcare | 5,260 | 8,142 | 20,995 | 20,129 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||
Automotive | 4,506 | 1,986 | 8,815 | (6,629) | |||||||||||||||||||||||||||||||||||||||||||||||||||||||
Other businesses | (23,873) | (18,074) | (65,132) | (67,260) | |||||||||||||||||||||||||||||||||||||||||||||||||||||||
Corporate office | (13,481) | (12,739) | (42,831) | (34,331) | |||||||||||||||||||||||||||||||||||||||||||||||||||||||
$ | (16,607) | $ | 40,244 | $ | 54,828 | $ | 54,206 | ||||||||||||||||||||||||||||||||||||||||||||||||||||
Equity in Earnings of Affiliates, Net | 12,964 | 4,092 | 28,168 | 3,727 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||
Interest Expense, Net | (9,422) | (6,357) | (22,457) | (19,307) | |||||||||||||||||||||||||||||||||||||||||||||||||||||||
Non-Operating Pension and Postretirement Benefit Income, Net | 27,561 | 10,489 | 81,564 | 41,028 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||
Gain (Loss) on Marketable Equity Securities, Net | 14,069 | 59,364 | 176,981 | (1,139) | |||||||||||||||||||||||||||||||||||||||||||||||||||||||
Other Income, Net | 5,218 | 222 | 27,660 | 11,010 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||
Income Before Income Taxes | $ | 33,783 | $ | 108,054 | $ | 346,744 | $ | 89,525 | |||||||||||||||||||||||||||||||||||||||||||||||||||
Depreciation of Property, Plant and Equipment | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Education | $ | 8,217 | $ | 6,822 | $ | 23,479 | $ | 24,475 | |||||||||||||||||||||||||||||||||||||||||||||||||||
Television broadcasting | 3,462 | 3,399 | 10,478 | 10,188 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||
Manufacturing | 2,402 | 2,557 | 7,346 | 7,610 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||
Healthcare | 322 | 318 | 970 | 1,351 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||
Automotive | 535 | 619 | 1,555 | 1,735 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||
Other businesses | 3,649 | 4,589 | 7,578 | 12,211 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||
Corporate office | 154 | 177 | 480 | 528 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||
$ | 18,741 | $ | 18,481 | $ | 51,886 | $ | 58,098 | ||||||||||||||||||||||||||||||||||||||||||||||||||||
Three months ended | Nine months ended | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Three Months Ended September 30 | Nine Months Ended September 30 | September 30 | September 30 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
(in thousands) | 2017 | 2016 | 2017 | 2016 | (in thousands) | 2021 | 2020 | 2021 | 2020 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Operating Revenues | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Pension Service Cost | Pension Service Cost | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Education | $ | 376,805 | $ | 386,936 | $ | 1,136,201 | $ | 1,207,225 | Education | $ | 2,339 | $ | 2,350 | $ | 7,020 | $ | 7,527 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Television broadcasting | 101,295 | 112,389 | 298,893 | 300,927 | Television broadcasting | 901 | 817 | 2,692 | 2,449 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Other businesses | 179,125 | 122,313 | 480,935 | 344,298 | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Corporate office | — | — | — | — | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Intersegment elimination | — | — | — | (139 | ) | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
$ | 657,225 | $ | 621,638 | $ | 1,916,029 | $ | 1,852,311 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Income (Loss) from Operations | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Education | $ | 13,391 | $ | 16,333 | $ | 55,347 | $ | 63,713 | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Television broadcasting | 32,948 | 59,159 | 98,181 | 144,594 | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Manufacturing | Manufacturing | 321 | 318 | 962 | 1,107 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Healthcare | Healthcare | 141 | 136 | 421 | 407 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Automotive | Automotive | — | — | — | — | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Other businesses | (7,033 | ) | (10,801 | ) | (26,515 | ) | (21,593 | ) | Other businesses | 458 | 410 | 1,314 | 1,276 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Corporate office | 5,265 | 3,342 | 14,973 | 7,331 | Corporate office | 1,615 | 1,426 | 4,845 | 4,278 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
$ | 44,571 | $ | 68,033 | $ | 141,986 | $ | 194,045 | $ | 5,775 | $ | 5,457 | $ | 17,254 | $ | 17,044 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Equity in Earnings (Losses) of Affiliates, Net | (532 | ) | (1,008 | ) | 1,448 | (895 | ) | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Interest Expense, Net | (7,758 | ) | (7,874 | ) | (22,386 | ) | (22,481 | ) | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Other Income (Expense), Net | 1,963 | (18,225 | ) | 6,881 | 15,871 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Income Before Income Taxes | $ | 38,244 | $ | 40,926 | $ | 127,929 | $ | 186,540 | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Depreciation of Property, Plant and Equipment | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Education | $ | 8,085 | $ | 9,977 | $ | 24,994 | $ | 31,322 | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Television broadcasting | 3,118 | 2,540 | 8,703 | 7,367 | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Other businesses | 4,520 | 3,289 | 11,968 | 9,389 | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Corporate office | 279 | 291 | 860 | 825 | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
$ | 16,002 | $ | 16,097 | $ | 46,525 | $ | 48,903 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Amortization of Intangible Assets and Impairment of Goodwill and Other Long-Lived Assets | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Education | $ | 1,355 | $ | 1,773 | $ | 3,798 | $ | 5,158 | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Television broadcasting | 1,071 | 63 | 2,943 | 189 | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Other businesses | 8,809 | 4,784 | 31,085 | 13,813 | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Corporate office | — | — | — | — | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
$ | 11,235 | $ | 6,620 | $ | 37,826 | $ | 19,160 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Net Pension (Credit) Expense | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Education | $ | 2,430 | $ | 2,838 | $ | 7,289 | $ | 8,965 | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Television broadcasting | 485 | 428 | 1,457 | 1,285 | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Other businesses | 1,375 | 279 | 2,273 | 839 | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Corporate office | (18,122 | ) | (15,934 | ) | (54,368 | ) | (47,803 | ) | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
$ | (13,832 | ) | $ | (12,389 | ) | $ | (43,349 | ) | $ | (36,714 | ) |
As of | |||||||||||
(in thousands) | September 30, 2021 | December 31, 2020 | |||||||||
Identifiable Assets | |||||||||||
Education | $ | 1,975,302 | $ | 1,975,104 | |||||||
Television broadcasting | 441,098 | 453,988 | |||||||||
Manufacturing | 486,241 | 551,611 | |||||||||
Healthcare | 163,286 | 160,654 | |||||||||
Automotive | 160,025 | 151,789 | |||||||||
Other businesses | 660,385 | 365,744 | |||||||||
Corporate office | 84,196 | 348,045 | |||||||||
$ | 3,970,533 | $ | 4,006,935 | ||||||||
Investments in Marketable Equity Securities | 764,831 | 573,102 | |||||||||
Investments in Affiliates | 171,249 | 155,777 | |||||||||
Prepaid Pension Cost | 1,772,859 | 1,708,305 | |||||||||
Total Assets | $ | 6,679,472 | $ | 6,444,119 |
As of | |||||||
(in thousands) | September 30, 2017 | December 31, 2016 | |||||
Identifiable Assets | |||||||
Education | $ | 1,615,116 | $ | 1,479,267 | |||
Television broadcasting | 447,702 | 336,631 | |||||
Other businesses | 918,684 | 796,935 | |||||
Corporate office | 157,550 | 455,209 | |||||
$ | 3,139,052 | $ | 3,068,042 | ||||
Investments in Marketable Equity Securities | 495,599 | 424,229 | |||||
Investments in Affiliates | 122,166 | 58,806 | |||||
Prepaid Pension Cost | 863,098 | 881,593 | |||||
Total Assets | $ | 4,619,915 | $ | 4,432,670 |
Three Months Ended | Nine Months Ended | Three Months Ended | Nine months ended | ||||||||||||||||||||||||||||||||||||||
September 30 | September 30 | September 30 | September 30 | ||||||||||||||||||||||||||||||||||||||
(in thousands) | 2017 | 2016 | 2017 | 2016 | (in thousands) | 2021 | 2020 | 2021 | 2020 | ||||||||||||||||||||||||||||||||
Operating Revenues | Operating Revenues | ||||||||||||||||||||||||||||||||||||||||
Kaplan international | Kaplan international | $ | 168,143 | $ | 123,768 | $ | 521,314 | $ | 488,096 | ||||||||||||||||||||||||||||||||
Higher education | $ | 133,459 | $ | 148,602 | $ | 416,973 | $ | 472,131 | Higher education | 85,518 | 83,841 | 239,944 | 243,831 | ||||||||||||||||||||||||||||
Test preparation | 72,680 | 78,291 | 212,978 | 224,102 | |||||||||||||||||||||||||||||||||||||
Kaplan international | 171,259 | 160,456 | 507,568 | 512,068 | |||||||||||||||||||||||||||||||||||||
Supplemental education | Supplemental education | 80,489 | 92,568 | 238,055 | 253,641 | ||||||||||||||||||||||||||||||||||||
Kaplan corporate and other | 49 | 47 | 120 | 190 | Kaplan corporate and other | 3,761 | 3,194 | 10,739 | 9,438 | ||||||||||||||||||||||||||||||||
Intersegment elimination | (642 | ) | (460 | ) | (1,438 | ) | (1,266 | ) | Intersegment elimination | (1,912) | (904) | (4,752) | (2,986) | ||||||||||||||||||||||||||||
$ | 376,805 | $ | 386,936 | $ | 1,136,201 | $ | 1,207,225 | $ | 335,999 | $ | 302,467 | $ | 1,005,300 | $ | 992,020 | ||||||||||||||||||||||||||
Income (Loss) From Operations before Amortization of Intangible Assets and Impairment of Long-Lived Assets | Income (Loss) From Operations before Amortization of Intangible Assets and Impairment of Long-Lived Assets | ||||||||||||||||||||||||||||||||||||||||
Kaplan international | Kaplan international | $ | (999) | $ | (13,759) | $ | 23,285 | $ | 21,256 | ||||||||||||||||||||||||||||||||
Higher education | Higher education | 9,525 | 6,853 | 18,152 | 21,883 | ||||||||||||||||||||||||||||||||||||
Supplemental education | Supplemental education | 11,769 | 19,069 | 33,079 | 12,849 | ||||||||||||||||||||||||||||||||||||
Kaplan corporate and other | Kaplan corporate and other | (6,426) | (2,579) | (17,375) | (10,971) | ||||||||||||||||||||||||||||||||||||
Intersegment elimination | Intersegment elimination | — | — | 97 | 5 | ||||||||||||||||||||||||||||||||||||
$ | 13,869 | $ | 9,584 | $ | 57,238 | $ | 45,022 | ||||||||||||||||||||||||||||||||||
Amortization of Intangible Assets | Amortization of Intangible Assets | $ | 3,888 | $ | 4,335 | $ | 11,967 | $ | 12,807 | ||||||||||||||||||||||||||||||||
Impairment of Long-Lived Assets | Impairment of Long-Lived Assets | $ | 67 | $ | 1,916 | $ | 3,273 | $ | 11,936 | ||||||||||||||||||||||||||||||||
Income (Loss) from Operations | Income (Loss) from Operations | ||||||||||||||||||||||||||||||||||||||||
Kaplan international | Kaplan international | $ | (999) | $ | (13,759) | $ | 23,285 | $ | 21,256 | ||||||||||||||||||||||||||||||||
Higher education | $ | 8,809 | $ | 11,494 | $ | 39,124 | $ | 50,037 | Higher education | 9,525 | 6,853 | 18,152 | 21,883 | ||||||||||||||||||||||||||||
Test preparation | 7,330 | 8,588 | 10,207 | 13,314 | |||||||||||||||||||||||||||||||||||||
Kaplan international | 5,348 | 1,561 | 29,009 | 22,937 | |||||||||||||||||||||||||||||||||||||
Supplemental education | Supplemental education | 11,769 | 19,069 | 33,079 | 12,849 | ||||||||||||||||||||||||||||||||||||
Kaplan corporate and other | (8,037 | ) | (5,310 | ) | (22,957 | ) | (22,526 | ) | Kaplan corporate and other | (10,381) | (8,830) | (32,615) | (35,714) | ||||||||||||||||||||||||||||
Intersegment elimination | (59 | ) | — | (36 | ) | (49 | ) | Intersegment elimination | — | — | 97 | 5 | |||||||||||||||||||||||||||||
$ | 13,391 | $ | 16,333 | $ | 55,347 | $ | 63,713 | $ | 9,914 | $ | 3,333 | $ | 41,998 | $ | 20,279 | ||||||||||||||||||||||||||
Depreciation of Property, Plant and Equipment | Depreciation of Property, Plant and Equipment | ||||||||||||||||||||||||||||||||||||||||
Kaplan international | Kaplan international | $ | 5,516 | $ | 4,585 | $ | 15,603 | $ | 14,782 | ||||||||||||||||||||||||||||||||
Higher education | $ | 2,768 | $ | 4,157 | $ | 9,448 | $ | 12,325 | Higher education | 923 | 682 | 2,648 | 2,237 | ||||||||||||||||||||||||||||
Test preparation | 1,407 | 1,441 | 4,080 | 4,837 | |||||||||||||||||||||||||||||||||||||
Kaplan international | 3,780 | 4,360 | 11,071 | 13,739 | |||||||||||||||||||||||||||||||||||||
Supplemental education | Supplemental education | 1,658 | 1,454 | 4,904 | 7,165 | ||||||||||||||||||||||||||||||||||||
Kaplan corporate and other | 130 | 19 | 395 | 421 | Kaplan corporate and other | 120 | 101 | 324 | 291 | ||||||||||||||||||||||||||||||||
$ | 8,085 | $ | 9,977 | $ | 24,994 | $ | 31,322 | $ | 8,217 | $ | 6,822 | $ | 23,479 | $ | 24,475 | ||||||||||||||||||||||||||
Amortization of Intangible Assets | $ | 1,355 | $ | 1,773 | $ | 3,798 | $ | 5,158 | |||||||||||||||||||||||||||||||||
Pension Expense | |||||||||||||||||||||||||||||||||||||||||
Pension Service Cost | Pension Service Cost | ||||||||||||||||||||||||||||||||||||||||
Kaplan international | Kaplan international | $ | 73 | $ | 102 | $ | 221 | $ | 334 | ||||||||||||||||||||||||||||||||
Higher education | $ | 548 | $ | 1,905 | $ | 4,636 | $ | 5,715 | Higher education | 1,109 | 973 | 3,329 | 3,113 | ||||||||||||||||||||||||||||
Test preparation | 244 | 768 | 2,066 | 2,304 | |||||||||||||||||||||||||||||||||||||
Kaplan international | 24 | 67 | 198 | 201 | |||||||||||||||||||||||||||||||||||||
Supplemental education | Supplemental education | 954 | 986 | 2,861 | 3,155 | ||||||||||||||||||||||||||||||||||||
Kaplan corporate and other | 1,614 | 98 | 389 | 745 | Kaplan corporate and other | 203 | 289 | 609 | 925 | ||||||||||||||||||||||||||||||||
$ | 2,430 | $ | 2,838 | $ | 7,289 | $ | 8,965 | $ | 2,339 | $ | 2,350 | $ | 7,020 | $ | 7,527 |
As of | |||||||||||
(in thousands) | September 30, 2021 | December 31, 2020 | |||||||||
Identifiable Assets | |||||||||||
Kaplan international | $ | 1,445,125 | $ | 1,455,722 | |||||||
Higher education | 207,834 | 187,123 | |||||||||
Supplemental education | 263,169 | 274,687 | |||||||||
Kaplan corporate and other | 59,174 | 57,572 | |||||||||
$ | 1,975,302 | $ | 1,975,104 |
As of | |||||||
(in thousands) | September 30, 2017 | December 31, 2016 | |||||
Identifiable assets | |||||||
Higher education | $ | 349,756 | $ | 373,127 | |||
Test preparation | 135,442 | 133,709 | |||||
Kaplan international | 1,110,596 | 950,922 | |||||
Kaplan corporate and other | 19,322 | 21,509 | |||||
$ | 1,615,116 | $ | 1,479,267 |
Three Months Ended | Nine Months Ended | ||||||||||||||||||||
September 30 | September 30 | ||||||||||||||||||||
(in thousands) | 2017 | 2016 | % Change | 2017 | 2016 | % Change | |||||||||||||||
Revenue | |||||||||||||||||||||
Higher education | $ | 133,459 | $ | 148,602 | (10 | ) | $ | 416,973 | $ | 472,131 | (12 | ) | |||||||||
Test preparation | 72,680 | 78,291 | (7 | ) | 212,978 | 224,102 | (5 | ) | |||||||||||||
Kaplan international | 171,259 | 160,456 | 7 | 507,568 | 512,068 | (1 | ) | ||||||||||||||
Kaplan corporate and other | 49 | 47 | 4 | 120 | 190 | (37 | ) | ||||||||||||||
Intersegment elimination | (642 | ) | (460 | ) | — | (1,438 | ) | (1,266 | ) | — | |||||||||||
$ | 376,805 | $ | 386,936 | (3 | ) | $ | 1,136,201 | $ | 1,207,225 | (6 | ) | ||||||||||
Operating Income (Loss) | |||||||||||||||||||||
Higher education | $ | 8,809 | $ | 11,494 | (23 | ) | $ | 39,124 | $ | 50,037 | (22 | ) | |||||||||
Test preparation | 7,330 | 8,588 | (15 | ) | 10,207 | 13,314 | (23 | ) | |||||||||||||
Kaplan international | 5,348 | 1,561 | — | 29,009 | 22,937 | 26 | |||||||||||||||
Kaplan corporate and other | (6,682 | ) | (3,537 | ) | (89 | ) | (19,159 | ) | (17,368 | ) | (10 | ) | |||||||||
Amortization of intangible assets | (1,355 | ) | (1,773 | ) | 24 | (3,798 | ) | (5,158 | ) | 26 | |||||||||||
Intersegment elimination | (59 | ) | — | — | (36 | ) | (49 | ) | — | ||||||||||||
$ | 13,391 | $ | 16,333 | (18 | ) | $ | 55,347 | $ | 63,713 | (13 | ) |
As of September 30 | ||||||
2017 | 2016 | |||||
Certificate | 10.0 | % | 7.7 | % | ||
Associate’s | 16.8 | % | 19.5 | % | ||
Bachelor’s | 50.1 | % | 51.0 | % | ||
Master’s | 23.1 | % | 21.8 | % | ||
100.0 | % | 100.0 | % |
Three Months Ended | Nine Months Ended | ||||||||||||||||||||||||||||||||||
September 30 | September 30 | ||||||||||||||||||||||||||||||||||
(in thousands) | 2021 | 2020 | % Change | 2021 | 2020 | % Change | |||||||||||||||||||||||||||||
Revenue | |||||||||||||||||||||||||||||||||||
Kaplan international | $ | 168,143 | $ | 123,768 | 36 | $ | 521,314 | $ | 488,096 | 7 | |||||||||||||||||||||||||
Higher education | 85,518 | 83,841 | 2 | 239,944 | 243,831 | (2) | |||||||||||||||||||||||||||||
Supplemental education | 80,489 | 92,568 | (13) | 238,055 | 253,641 | (6) | |||||||||||||||||||||||||||||
Kaplan corporate and other | 3,761 | 3,194 | 18 | 10,739 | 9,438 | 14 | |||||||||||||||||||||||||||||
Intersegment elimination | (1,912) | (904) | — | (4,752) | (2,986) | — | |||||||||||||||||||||||||||||
$ | 335,999 | $ | 302,467 | 11 | $ | 1,005,300 | $ | 992,020 | 1 | ||||||||||||||||||||||||||
Operating Income (Loss) | |||||||||||||||||||||||||||||||||||
Kaplan international | $ | (999) | $ | (13,759) | 93 | $ | 23,285 | $ | 21,256 | 10 | |||||||||||||||||||||||||
Higher education | 9,525 | 6,853 | 39 | 18,152 | 21,883 | (17) | |||||||||||||||||||||||||||||
Supplemental education | 11,769 | 19,069 | (38) | 33,079 | 12,849 | — | |||||||||||||||||||||||||||||
Kaplan corporate and other | (6,426) | (2,579) | — | (17,375) | (10,971) | (58) | |||||||||||||||||||||||||||||
Amortization of intangible assets | (3,888) | (4,335) | 10 | (11,967) | (12,807) | 7 | |||||||||||||||||||||||||||||
Impairment of long-lived assets | (67) | (1,916) | 97 | (3,273) | (11,936) | 73 | |||||||||||||||||||||||||||||
Intersegment elimination | — | — | — | 97 | 5 | — | |||||||||||||||||||||||||||||
$ | 9,914 | $ | 3,333 | — | $ | 41,998 | $ | 20,279 | — |
Three Months Ended | Nine Months Ended | ||||||||||||||||||||||||||||||||||
September 30 | September 30 | ||||||||||||||||||||||||||||||||||
(in thousands) | 2021 | 2020 | % Change | 2021 | 2020 | % Change | |||||||||||||||||||||||||||||
Revenue | $ | 126,498 | $ | 133,828 | (5) | $ | 360,089 | $ | 350,038 | 3 | |||||||||||||||||||||||||
Operating Income | 40,550 | 52,745 | (23) | 109,131 | 112,148 | (3) |
Three Months Ended | Nine Months Ended | |||||||||||||||||||||
September 30 | % | September 30 | % | |||||||||||||||||||
(in thousands) | 2017 | 2016 | Change | 2017 | 2016 | Change | ||||||||||||||||
Operating Revenues | ||||||||||||||||||||||
Manufacturing | $ | 115,594 | $ | 62,207 | 86 | $ | 298,164 | $ | 176,908 | 69 | ||||||||||||
Healthcare | 40,473 | 37,690 | 7 | 115,592 | 110,068 | 5 | ||||||||||||||||
SocialCode | 14,497 | 15,180 | (4 | ) | 41,926 | 38,961 | 8 | |||||||||||||||
Other | 8,561 | 7,236 | 18 | 25,253 | 18,361 | 38 | ||||||||||||||||
$ | 179,125 | $ | 122,313 | 46 | $ | 480,935 | $ | 344,298 | 40 | |||||||||||||
Operating Expenses | ||||||||||||||||||||||
Manufacturing | $ | 109,813 | $ | 58,430 | 88 | $ | 292,893 | $ | 169,145 | 73 | ||||||||||||
Healthcare | 39,553 | 36,383 | 9 | 115,214 | 107,288 | 7 | ||||||||||||||||
SocialCode | 20,745 | 26,017 | (20 | ) | 50,078 | 54,223 | (8 | ) | ||||||||||||||
Other | 16,047 | 12,284 | 31 | 49,265 | 35,235 | 40 | ||||||||||||||||
$ | 186,158 | $ | 133,114 | 40 | $ | 507,450 | $ | 365,891 | 39 | |||||||||||||
Operating Income (Loss) | ||||||||||||||||||||||
Manufacturing | $ | 5,781 | $ | 3,777 | 53 | $ | 5,271 | $ | 7,763 | (32 | ) | |||||||||||
Healthcare | 920 | 1,307 | (30 | ) | 378 | 2,780 | (86 | ) | ||||||||||||||
SocialCode | (6,248 | ) | (10,837 | ) | 42 | (8,152 | ) | (15,262 | ) | 47 | ||||||||||||
Other | (7,486 | ) | (5,048 | ) | (48 | ) | (24,012 | ) | (16,874 | ) | (42 | ) | ||||||||||
$ | (7,033 | ) | $ | (10,801 | ) | 35 | $ | (26,515 | ) | $ | (21,593 | ) | (23 | ) | ||||||||
Depreciation | ||||||||||||||||||||||
Manufacturing | $ | 2,717 | $ | 1,809 | 50 | $ | 6,629 | $ | 5,588 | 19 | ||||||||||||
Healthcare | 1,166 | 686 | 70 | 3,429 | 2,090 | 64 | ||||||||||||||||
SocialCode | 256 | 241 | 6 | 753 | 683 | 10 | ||||||||||||||||
Other | 381 | 553 | (31 | ) | 1,157 | 1,028 | 13 | |||||||||||||||
$ | 4,520 | $ | 3,289 | 37 | $ | 11,968 | $ | 9,389 | 27 | |||||||||||||
Amortization of Intangible Assets and Impairment of Goodwill and Other Long-Lived Assets | ||||||||||||||||||||||
Manufacturing | $ | 6,306 | $ | 3,089 | — | $ | 25,117 | $ | 8,722 | — | ||||||||||||
Healthcare | 2,420 | 1,674 | 45 | 5,718 | 5,028 | 14 | ||||||||||||||||
SocialCode | 83 | — | — | 250 | — | — | ||||||||||||||||
Other | — | 21 | — | — | 63 | — | ||||||||||||||||
$ | 8,809 | $ | 4,784 | 84 | $ | 31,085 | $ | 13,813 | — | |||||||||||||
Pension Expense | ||||||||||||||||||||||
Manufacturing | $ | 947 | $ | 24 | — | $ | 994 | $ | 62 | — | ||||||||||||
Healthcare | 166 | — | — | 498 | — | — | ||||||||||||||||
SocialCode | 149 | 135 | 10 | 445 | 406 | 10 | ||||||||||||||||
Other | 113 | 120 | (6 | ) | 336 | 371 | (9 | ) | ||||||||||||||
$ | 1,375 | $ | 279 | — | $ | 2,273 | $ | 839 | — |
Three Months Ended | Nine Months Ended | ||||||||||||||||||||||||||||||||||
September 30 | September 30 | ||||||||||||||||||||||||||||||||||
(in thousands) | 2021 | 2020 | % Change | 2021 | 2020 | % Change | |||||||||||||||||||||||||||||
Revenue | $ | 99,766 | $ | 106,690 | (6) | $ | 356,849 | $ | 303,387 | 18 | |||||||||||||||||||||||||
Operating (Loss) Income | (39,483) | 4,851 | — | (18,148) | 9,870 | — |
Three Months Ended | Nine Months Ended | ||||||||||||||||||||||||||||||||||
September 30 | September 30 | ||||||||||||||||||||||||||||||||||
(in thousands) | 2021 | 2020 | % Change | 2021 | 2020 | % Change | |||||||||||||||||||||||||||||
Revenue | $ | 55,445 | $ | 51,426 | 8 | $ | 160,184 | $ | 146,601 | 9 | |||||||||||||||||||||||||
Operating Income | 5,260 | 8,142 | (35) | 20,995 | 20,129 | 4 |
Three Months Ended | Nine Months Ended | ||||||||||||||||||||||||||||||||||
September 30 | September 30 | ||||||||||||||||||||||||||||||||||
(in thousands) | 2021 | 2020 | % Change | 2021 | 2020 | % Change | |||||||||||||||||||||||||||||
Revenue | $ | 84,702 | $ | 76,790 | 10 | $ | 242,702 | $ | 182,288 | 33 | |||||||||||||||||||||||||
Operating Income (Loss) | 4,506 | 1,986 | — | 8,815 | (6,629) | — |
As of | |||||||||||
(In thousands) | September 30, 2021 | December 31, 2020 | |||||||||
Cash and cash equivalents | $ | 133,882 | $ | 413,991 | |||||||
Restricted cash | 15,054 | 9,063 | |||||||||
Investments in marketable equity securities and other investments | 779,073 | 587,582 | |||||||||
Total debt | 555,889 | 512,555 |
Moody’s | Standard & Poor’s | ||||||||||
Long-term | Ba1 | BB | |||||||||
Outlook | Stable | Stable | |||||||||
Nine Months Ended September 30 | |||||||||||
(In thousands) | 2021 | 2020 | |||||||||
Net cash provided by operating activities | $ | 197,271 | $ | 240,890 | |||||||
Net cash (used in) provided by investing activities | (420,456) | 12,722 | |||||||||
Net cash used in financing activities | (48,025) | (153,674) | |||||||||
Effect of currency exchange rate change | (2,908) | (2,729) | |||||||||
Net (decrease) increase in cash and cash equivalents and restricted cash | $ | (274,118) | $ | 97,209 |
Nine Months Ended September 30 | |||||||||||
(In thousands) | 2021 | 2020 | |||||||||
Net Income | $ | 268,244 | $ | 63,025 | |||||||
Adjustments to reconcile net income to net cash provided by operating activities: | |||||||||||
Depreciation, amortization and goodwill and other long-lived asset impairments | 127,261 | 130,568 | |||||||||
Amortization of lease right-of-use asset | 55,246 | 70,214 | |||||||||
Net pension benefit and special separation benefit expense | (68,644) | (27,669) | |||||||||
Other non-cash activities | (156,326) | 7,895 | |||||||||
Change in operating assets and liabilities | (28,510) | (3,143) | |||||||||
Net Cash Provided by Operating Activities | $ | 197,271 | $ | 240,890 |
Nine Months Ended September 30 | |||||||||||
(In thousands) | 2021 | 2020 | |||||||||
Investments in certain businesses, net of cash acquired | $ | (272,428) | $ | (20,080) | |||||||
Purchases of property, plant and equipment | (140,935) | (56,121) | |||||||||
Net (purchases of) proceeds from sales of marketable equity securities | (9,728) | 93,775 | |||||||||
Investments in equity affiliates, cost method and other investments | (6,610) | (8,298) | |||||||||
Other | 9,245 | 3,446 | |||||||||
Net Cash (Used in) Provided by Investing Activities | $ | (420,456) | $ | 12,722 |
Nine Months Ended September 30 | |||||||||||
(In thousands) | 2021 | 2020 | |||||||||
Dividends paid | $ | (22,659) | $ | (22,870) | |||||||
Net payments on vehicle floor plan payable | (15,035) | (16,300) | |||||||||
Net borrowings under revolving credit facility | 37,696 | 75,905 | |||||||||
Repayments of borrowings | (16,878) | (75,841) | |||||||||
Issuance of borrowings | 22,684 | 2,084 | |||||||||
Common shares repurchased | (21,840) | (123,155) | |||||||||
Other | (31,993) | 6,503 | |||||||||
Net Cash Used in Financing Activities | $ | (48,025) | $ | (153,674) |
Period | Total Number of Shares Purchased | Average Price Paid per Share | Total Number of Shares Purchased as Part of Publicly Announced Plan* | Maximum Number of Shares that May Yet Be Purchased Under the Plan* | Period | Total Number of Shares Purchased | Average Price Paid per Share | Total Number of Shares Purchased as Part of Publicly Announced Plan* | Maximum Number of Shares that May Yet Be Purchased Under the Plan* | ||||||||||||||||||||||||||||||
July | — | $ | — | — | 223,526 | July | — | $ | — | — | 364,151 | ||||||||||||||||||||||||||||
August | 41,258 | 586.17 | 41,258 | 182,268 | August | 8,216 | 608.71 | 8,216 | 355,935 | ||||||||||||||||||||||||||||||
September | 19,031 | 568.28 | 19,031 | 163,237 | September | 28,295 | 595.11 | 28,295 | 327,640 | ||||||||||||||||||||||||||||||
60,289 | $ | 580.52 | 60,289 | 36,511 | $ | 598.17 | 36,511 |
Exhibit Number | Description | ||||
3.2 | |||||
3.3 | |||||
4.1 | |||||
4.2 | |||||
31.1 | |||||
31.2 | |||||
32 | |||||
101.DEF | Inline XBRL Taxonomy Extension Definition Linkbase Document | ||||
101.LAB | Inline XBRL Taxonomy Extension Label Linkbase Document | ||||
101.PRE | Inline XBRL Taxonomy Extension Presentation Linkbase Document | ||||
104 | Cover Page Interactive Data File, formatted in Inline XBRL and included as Exhibit 101 |
GRAHAM HOLDINGS COMPANY | ||||||||
(Registrant) | ||||||||
Date: November | /s/ Timothy J. O’Shaughnessy | |||||||
Timothy J. O’Shaughnessy, President & Chief Executive Officer (Principal Executive Officer) | ||||||||
Date: November | /s/ Wallace R. Cooney | |||||||
Wallace R. Cooney, Chief Financial Officer (Principal Financial Officer) |