Discontinued Operations | 3 Months Ended |
Mar. 31, 2014 |
Discontinued Operation, Additional Disclosures [Abstract] | ' |
Discontinued Operations | ' |
DISCONTINUED OPERATIONS |
On April 11, 2014, the Company and Berkshire Hathaway Inc. announced that they have signed an agreement for Berkshire to acquire a wholly-owned subsidiary of the Company that includes WPLG, the Company's Miami-based television station, a number of Berkshire shares currently held by the Company and an amount of cash in exchange for approximately 1.6 million shares of Graham Holdings Class B common stock currently owned by Berkshire. The transaction is expected to close in the second or third quarter of 2014. |
On October 1, 2013, the Company completed the sale of most of its newspaper publishing businesses. The publishing businesses sold include The Washington Post, Express, The Gazette Newspapers, Southern Maryland Newspapers, Greater Washington Publishing, Fairfax County Times and El Tiempo Latino and related websites (Publishing Subsidiaries). |
In March 2013, the Company completed the sale of The Herald which resulted in a pre-tax loss of $0.1 million that was recorded in the first quarter of 2013. |
The results of operations of WPLG, the Publishing Subsidiaries and The Herald are included in the Company’s Consolidated Statements of Operations as Income (Loss) from Discontinued Operations, Net of Tax, for all periods presented. The assets of WPLG have been classified on the Company’s condensed consolidated balance sheet as assets held for sale as of March 31, 2014. The Company did not reclassify its Statements of Cash Flows or prior Condensed Consolidated Balance Sheets to reflect the various discontinued operations. |
The carrying amounts of the major classes of assets included in assets held for sale at March 31, 2014 are as follows: |
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| As of | | | | | | | | | | | | |
(in thousands) | 31-Mar-14 | | | | | | | | | | | | |
Other current assets | $ | 397 | | | | | | | | | | | | | |
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Current Assets Held for Sale | $ | 397 | | | | | | | | | | | | | |
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Property, plant and equipment, net | $ | 30,954 | | | | | | | | | | | | | |
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Goodwill, net | 60,206 | | | | | | | | | | | | | |
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Indefinite-lived intangible assets, net | 22,150 | | | | | | | | | | | | | |
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Deferred charges and other assets | 2 | | | | | | | | | | | | | |
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Noncurrent Assets Held for Sale | $ | 113,312 | | | | | | | | | | | | | |
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In the first quarter of 2014, an after-tax adjustment of $3.0 million was made to reduce the $100.0 million after-tax gain on the sale of the Publishing Subsidiaries previously reported in the fourth quarter of 2013, as a result of changes in estimates related to liabilities retained as part of the sale. |
The summarized income (loss) from discontinued operations, net of tax, is presented below: |
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  | Three Months Ended | | | | | | | | |
  |  March 31 | | | | | | | | |
(in thousands) | 2014 | | 2013 | | | | | | | | |
Operating revenues | $ | 16,274 | | | $ | 141,974 | | | | | | | | | |
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Operating costs and expenses | (10,134 | ) | | (168,077 | ) | | | | | | | | |
Income (loss) from discontinued operations | 6,140 | | | (26,103 | ) | | | | | | | | |
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Expense (benefit) from income taxes | 2,026 | | | (9,176 | ) | | | | | | | | |
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Net Income (Loss) from Discontinued Operations | 4,114 | | | (16,927 | ) | | | | | | | | |
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Loss on sales of discontinued operations | (4,737 | ) | | (70 | ) | | | | | | | | |
Benefit from income taxes on sales of discontinued operations | (1,695 | ) | | (24 | ) | | | | | | | | |
Income (Loss) from Discontinued Operations, Net of Tax | $ | 1,072 | | | $ | (16,973 | ) | | | | | | | | |
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The following table summarizes the 2013 quarterly operating results of the Company following the reclassification of the operations discussed above as discontinued operations: |
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  | March 31, | | June 30, | | September 30, | | December 31, |
(in thousands, except per share amounts) | 2013 | | 2013 | | 2013 | | 2013 |
Operating Revenues | Â Â | | Â Â | | Â Â | | Â Â |
Education | $ | 527,815 | | | $ | 548,230 | | | $ | 546,452 | | | $ | 555,011 | |
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Subscriber | 186,790 | | | 192,273 | | | 190,302 | | | 186,297 | |
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Advertising | 69,122 | | | 79,898 | | | 73,549 | | | 87,692 | |
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Other | 36,865 | | | 50,103 | | | 48,651 | | | 42,635 | |
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  | 820,592 | | | 870,504 | | | 858,954 | | | 871,635 | |
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Operating Costs and Expenses | Â Â | | | Â Â | | | Â Â | | | Â Â | |
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Operating | 376,545 | | | 394,841 | | | 395,436 | | | 375,876 | |
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Selling, general and administrative | 334,224 | | | 319,170 | | | 327,560 | | | 332,207 | |
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Depreciation of property, plant and equipment | 58,959 | | | 56,879 | | | 54,705 | | | 58,954 | |
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Amortization of intangible assets | 3,717 | | | 3,313 | | | 2,837 | | | 3,731 | |
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Impairment of goodwill and other long-lived assets | — | | | — | | | — | | | 3,250 | |
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  | 773,445 | | | 774,203 | | | 780,538 | | | 774,018 | |
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Income from Operations | 47,147 | | | 96,301 | | | 78,416 | | | 97,617 | |
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Equity in earnings of affiliates, net | 3,418 | | | 3,868 | | | 5,892 | | | 37 | |
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Interest income | 510 | | | 522 | | | 642 | | | 590 | |
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Interest expense | (8,960 | ) | | (9,048 | ) | | (9,221 | ) | | (8,838 | ) |
Other (expense) income, net | (4,083 | ) | | (12,858 | ) | | 8,110 | | | (14,920 | ) |
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Income from Continuing Operations before Income Taxes | 38,032 | | | 78,785 | | | 83,839 | | | 74,486 | |
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Provision for Income Taxes | 15,800 | | | 31,700 | | | 29,900 | | | 24,100 | |
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Income from Continuing Operations | 22,232 | | | 47,085 | | | 53,939 | | | 50,386 | |
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(Loss) Income from Discontinued Operations, Net of Tax | (16,973 | ) | | (1,951 | ) | | (23,515 | ) | | 106,142 | |
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Net Income | 5,259 | | | 45,134 | | | 30,424 | | | 156,528 | |
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Net Income Attributable to Noncontrolling Interests | (97 | ) | | (253 | ) | | (75 | ) | | (55 | ) |
Net Income Attributable to Graham Holdings Company | 5,162 | | | 44,881 | | | 30,349 | | | 156,473 | |
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Redeemable Preferred Stock Dividends | (444 | ) | | (206 | ) | | (205 | ) | | — | |
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Net Income Attributable to Graham Holdings Company Common Stockholders | $ | 4,718 | | | $ | 44,675 | | | $ | 30,144 | | | $ | 156,473 | |
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Amounts Attributable to Graham Holdings Company Common Stockholders | | | | | | | |
Income from continuing operations | $ | 21,691 | | | $ | 46,626 | | | $ | 53,659 | | | $ | 50,331 | |
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(Loss) Income from discontinued operations, net of tax | (16,973 | ) | | (1,951 | ) | | (23,515 | ) | | 106,142 | |
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Net income attributable to Graham Holdings Company common stockholders | $ | 4,718 | | | $ | 44,675 | | | $ | 30,144 | | | $ | 156,473 | |
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Per Share Information Attributable to Graham Holdings Company Common Stockholders | Â Â | | | Â Â | | | Â Â | | | Â Â | |
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Basic income per common share from continuing operations | $ | 2.92 | | | $ | 6.28 | | | $ | 7.23 | | | $ | 6.82 | |
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Basic (loss) income per common share from discontinued operations | (2.28 | ) | | (0.26 | ) | | (3.16 | ) | | 14.38 | |
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Basic net income per common share | $ | 0.64 | | | $ | 6.02 | | | $ | 4.07 | | | $ | 21.2 | |
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Diluted income per common share from continuing operations | $ | 2.92 | | | $ | 6.28 | | | $ | 7.22 | | | $ | 6.8 | |
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Diluted (loss) income per common share from discontinued operations | (2.28 | ) | | (0.26 | ) | | (3.17 | ) | | 14.34 | |
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Diluted net income per common share | $ | 0.64 | | | $ | 6.02 | | | $ | 4.05 | | | $ | 21.14 | |
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The following table summarizes the annual operating results of the Company following the reclassification of operations discussed above as discontinued operations: |
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(in thousands, except per share amounts) | 2013 | | 2012 | | | | | | | | |
Operating Revenues | Â Â | | Â Â | | | | | | | | |
Education | $ | 2,177,508 | | | $ | 2,196,496 | | | | | | | | | |
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Subscriber | 755,662 | | | 732,370 | | | | | | | | | |
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Advertising | 310,261 | | | 337,621 | | | | | | | | | |
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Other | 178,254 | | | 118,063 | | | | | | | | | |
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  | 3,421,685 | | | 3,384,550 | | | | | | | | | |
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Operating Costs and Expenses | Â Â | | | Â Â | | | | | | | | | |
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Operating | 1,542,698 | | | 1,543,083 | | | | | | | | | |
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Selling, general and administrative | 1,313,161 | | | 1,318,946 | | | | | | | | | |
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Depreciation of property, plant and equipment | 229,497 | | | 240,313 | | | | | | | | | |
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Amortization of intangible assets | 13,598 | | | 20,946 | | | | | | | | | |
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Impairment of goodwill and other long-lived assets | 3,250 | | | 111,593 | | | | | | | | | |
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  | 3,102,204 | | | 3,234,881 | | | | | | | | | |
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Income from Operations | 319,481 | | | 149,669 | | | | | | | | | |
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Equity in earnings of affiliates, net | 13,215 | | | 14,086 | | | | | | | | | |
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Interest income | 2,264 | | | 3,393 | | | | | | | | | |
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Interest expense | (36,067 | ) | | (35,944 | ) | | | | | | | | |
Other expense, net | (23,751 | ) | | (5,456 | ) | | | | | | | | |
Income from Continuing Operations before Income Taxes | 275,142 | | | 125,748 | | | | | | | | | |
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Provision for Income Taxes | 101,500 | | | 73,400 | | | | | | | | | |
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Income from Continuing Operations | 173,642 | | | 52,348 | | | | | | | | | |
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Income from Discontinued Operations, Net of Tax | 63,703 | | | 79,839 | | | | | | | | | |
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Net Income | 237,345 | | | 132,187 | | | | | | | | | |
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Net Income Attributable to Noncontrolling Interests | (480 | ) | | (74 | ) | | | | | | | | |
Net Income Attributable to Graham Holdings Company | 236,865 | | | 132,113 | | | | | | | | | |
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Redeemable Preferred Stock Dividends | (855 | ) | | (895 | ) | | | | | | | | |
Net Income Attributable to Graham Holdings Company Common Stockholders | $ | 236,010 | | | $ | 131,218 | | | | | | | | | |
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Amounts Attributable to Graham Holdings Company Common Stockholders | | | | | | | | | | | |
Income from continuing operations | $ | 172,307 | | | $ | 51,379 | | | | | | | | | |
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Income from discontinued operations, net of tax | 63,703 | | | 79,839 | | | | | | | | | |
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Net income attributable to Graham Holdings Company common stockholders | $ | 236,010 | | | $ | 131,218 | | | | | | | | | |
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Per Share Information Attributable to Graham Holdings Company Common Stockholders | | | Â Â | | | | | | | | | |
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Basic income per common share from continuing operations | $ | 23.44 | | | $ | 6.54 | | | | | | | | | |
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Basic income per common share from discontinued operations | 8.66 | | | 10.85 | | | | | | | | | |
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Basic net income per common share | $ | 32.1 | | | $ | 17.39 | | | | | | | | | |
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Diluted income per common share from continuing operations | $ | 23.4 | | | $ | 6.54 | | | | | | | | | |
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Diluted income per common share from discontinued operations | 8.65 | | | 10.85 | | | | | | | | | |
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Diluted net income per common share | $ | 32.05 | | | $ | 17.39 | | | | | | | | | |
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