Document_and_Entity_Informatio
Document and Entity Information | 3 Months Ended | |
Mar. 31, 2015 | 1-May-15 | |
Document Type | 10-Q | |
Amendment Flag | FALSE | |
Document Period End Date | 31-Mar-15 | |
Document Fiscal Year Focus | 2015 | |
Document Fiscal Period Focus | Q1 | |
Trading Symbol | ghc | |
Entity Registrant Name | GRAHAM HOLDINGS CO | |
Entity Central Index Key | 104889 | |
Current Fiscal Year End Date | -19 | |
Entity Filer Category | Large Accelerated Filer | |
Class A Common Stock [Member] | ||
Entity Common Stock, Shares Outstanding | 964,001 | |
Class B Common Stock [Member] | ||
Entity Common Stock, Shares Outstanding | 4,869,463 |
Condensed_Consolidated_Stateme
Condensed Consolidated Statements of Operations (USD $) | 3 Months Ended | |
In Thousands, except Per Share data, unless otherwise specified | Mar. 31, 2015 | Mar. 31, 2014 |
Operating Revenues [Abstract] | ||
Education | $500,602 | $522,154 |
Subscriber | 187,597 | 191,128 |
Advertising | 74,027 | 78,247 |
Other | 83,922 | 45,012 |
Total Operating Revenues | 846,148 | 836,541 |
Operating Costs and Expenses [Abstract] | ||
Operating | 383,077 | 376,463 |
Selling, general and administrative | 353,202 | 325,275 |
Depreciation of property, plant and equipment | 58,545 | 53,217 |
Amortization of intangible assets | 4,769 | 2,717 |
Total Operating Costs and Expenses | 799,593 | 757,672 |
Income from Operations | 46,555 | 78,869 |
Equity in (losses) earnings of affiliates, net | -404 | 4,052 |
Interest income | 559 | 599 |
Interest expense | -8,521 | -8,820 |
Other (expense) income, net | -1,105 | 133,273 |
Income from Continuing Operations Before Income Taxes | 37,084 | 207,973 |
Provision for Income Taxes | 14,500 | 77,400 |
Income from Continuing Operations | 22,584 | 130,573 |
(Loss) Income from Discontinued Operations, Net of Tax | -784 | 1,732 |
Net Income | 21,800 | 132,305 |
Net (Income) Loss Attributable to Noncontrolling Interests | -774 | 219 |
Net Income Attributable to Graham Holdings Company | 21,026 | 132,524 |
Redeemable Preferred Stock Dividends | -420 | -426 |
Net income attributable to Graham Holdings Company common stockholders | 20,606 | 132,098 |
Amounts Attributable to Graham Holdings Company Common Stockholders | ||
Income from continuing operations | 21,390 | 130,366 |
(Loss) income from discontinued operations, net of tax | -784 | 1,732 |
Net income attributable to Graham Holdings Company common stockholders | $20,606 | $132,098 |
Per Share Information Attributable to Graham Holdings Company Common Stockholders | ||
Basic income per common share from continuing operations in dollars per share | $3.64 | $17.62 |
Basic (loss) income per common share from discontinued operations in dollars per share | ($0.13) | $0.23 |
Basic net income per common share in dollars per share | $3.51 | $17.85 |
Basic average number of common shares outstanding in shares | 5,704 | 7,275 |
Diluted income per common share from continuing operations in dollars per share | $3.62 | $17.56 |
Diluted (loss) income per common share from discontinued operations in dollars per share | ($0.14) | $0.23 |
Diluted net income per common share in dollars per share | $3.48 | $17.79 |
Diluted average number of common shares outstanding in shares | 5,791 | 7,352 |
Condensed_Consolidated_Stateme1
Condensed Consolidated Statements of Comprehensive Income (USD $) | 3 Months Ended | |
In Thousands, unless otherwise specified | Mar. 31, 2015 | Mar. 31, 2014 |
Statement of Comprehensive Income [Abstract] | ||
Net Income | $21,800 | $132,305 |
Foreign currency translation adjustments: | ||
Translation adjustments arising during the period | -12,088 | 746 |
Adjustment for sale of a business with foreign operations | -41 | 0 |
Total foreign currency translation adjustments, before tax | -12,129 | 746 |
Unrealized (losses) gains on available-for-sale securities: | ||
Unrealized (losses) gains for the period, net | -8,878 | 27,738 |
Reclassification adjustment for realization of (gain) loss on exchange, sale or write-down of available-for-sale securities included in net income | 0 | 785 |
Total unrealized (losses) gains on available-for-sale securities, before tax | -8,878 | 28,523 |
Pension and other postretirement plans: | ||
Amortization of net prior service cost (credit) included in net income | 69 | -102 |
Amortization of net actuarial loss (gain) included in net income | 629 | -7,182 |
Total pension and other postretirement plans, before tax | 698 | -7,284 |
Cash flow hedge gain | 179 | 172 |
Other Comprehensive (Loss) Income, Before Tax | -20,130 | 22,157 |
Income tax benefit (expense) related to items of other comprehensive (loss) income | 3,202 | -8,566 |
Other Comprehensive (Loss) Income, Net of Tax | -16,928 | 13,591 |
Comprehensive Income | 4,872 | 145,896 |
Comprehensive (income) loss attributable to noncontrolling interests | -774 | 219 |
Total Comprehensive Income Attributable to Graham Holdings Company | $4,098 | $146,115 |
Condensed_Consolidated_Balance
Condensed Consolidated Balance Sheets (USD $) | Mar. 31, 2015 | Dec. 31, 2014 |
In Thousands, unless otherwise specified | ||
Current Assets | ||
Cash and cash equivalents | $619,367 | $772,751 |
Restricted cash | 31,559 | 24,898 |
Investments in marketable equity securities and other investments | 214,980 | 226,752 |
Accounts receivable, net | 495,631 | 571,357 |
Deferred income taxes | 4,215 | 934 |
Inventories and contracts in progress | 11,634 | 11,309 |
Other current assets | 91,202 | 81,462 |
Current assets held for sale (includes $0 and $1,235 of cash, respectively) | 17,498 | 1,240 |
Total Current Assets | 1,486,086 | 1,690,703 |
Property, Plant and Equipment, Net | 823,376 | 860,829 |
Investments in Affiliates | 36,120 | 19,811 |
Goodwill, Net | 1,314,351 | 1,348,710 |
Indefinite-Lived Intangible Assets, Net | 510,966 | 516,753 |
Amortized Intangible Assets, Net | 90,854 | 96,947 |
Prepaid Pension Cost | 1,164,001 | 1,152,488 |
Deferred Charges and Other Assets | 65,691 | 65,258 |
Noncurrent Assets Held for Sale | 33,945 | 820 |
Total Assets | 5,525,390 | 5,752,319 |
Current Liabilities | ||
Accounts payable and accrued liabilities | 414,155 | 464,342 |
Income taxes payable | 11,235 | 128,895 |
Deferred revenue | 376,124 | 410,146 |
Dividends declared | 15,645 | 0 |
Short-term borrowings | 5,171 | 46,375 |
Current liabilities held for sale | 25,850 | 1,034 |
Total Current Liabilities | 848,180 | 1,050,792 |
Postretirement Benefits Other Than Pensions | 37,269 | 37,962 |
Accrued Compensation and Related Benefits | 240,089 | 244,082 |
Other Liabilities | 82,539 | 91,789 |
Deferred Income Taxes | 755,014 | 754,960 |
Long-Term Debt | 399,645 | 399,545 |
Noncurrent Liabilities Held for Sale | 8,085 | 0 |
Total Liabilities | 2,370,821 | 2,579,130 |
Redeemable Noncontrolling Interest | 22,694 | 21,904 |
Redeemable Preferred Stock | 10,510 | 10,510 |
Preferred Stock | 0 | 0 |
Common Stockholders’ Equity | ||
Common stock | 20,000 | 20,000 |
Capital in excess of par value | 302,205 | 303,789 |
Retained earnings | 5,998,241 | 6,008,506 |
Accumulated other comprehensive income, net of tax | ||
Cumulative foreign currency translation adjustment | -3,581 | 8,548 |
Unrealized gain on available-for-sale securities | 46,804 | 52,130 |
Unrealized gain on pensions and other postretirement plans | 393,329 | 392,910 |
Cash flow hedge | 0 | -108 |
Cost of Class B common stock held in treasury | -3,635,633 | -3,645,476 |
Total Common Stockholders’ Equity | 3,121,365 | 3,140,299 |
Noncontrolling Interests | 0 | 476 |
Total Equity | 3,121,365 | 3,140,775 |
Total Liabilities and Equity | $5,525,390 | $5,752,319 |
Consolidated_Balance_Sheets_Pa
Consolidated Balance Sheets (Parentheticals) (USD $) | Mar. 31, 2015 | Dec. 31, 2014 |
In Thousands, unless otherwise specified | ||
Cash held for sale | $0 | $1,235 |
Condensed_Consolidated_Stateme2
Condensed Consolidated Statements of Cash Flows (USD $) | 3 Months Ended | |
In Thousands, unless otherwise specified | Mar. 31, 2015 | Mar. 31, 2014 |
Cash Flows from Operating Activities | ||
Net Income | $21,800 | $132,305 |
Adjustments to reconcile net income to net cash provided by operating activities: | ||
Depreciation of property, plant and equipment | 58,545 | 54,124 |
Amortization of intangible assets | 4,769 | 3,081 |
Net pension benefit | -11,432 | -16,600 |
Early retirement program expense | 0 | 4,490 |
Foreign exchange loss (gain) | 6,827 | -5,037 |
Net gain on sale and disposition of businesses | -5,240 | 0 |
Equity in losses (earnings) of affiliates, net of distributions | 594 | -4,052 |
(Benefit) provision for deferred income taxes | -114 | 4,660 |
Net loss (gain) on sale or write-down of property, plant and equipment | 475 | -127,259 |
Change in assets and liabilities: | ||
(Increase) decrease in restricted cash | -7,340 | 31,734 |
Decrease in accounts receivable, net | 59,741 | 23,498 |
Decrease in accounts payable and accrued liabilities | -28,337 | -90,245 |
(Decrease) increase in deferred revenue | -11,621 | 25,739 |
(Decrease) increase in income taxes payable | -117,452 | 73,236 |
Increase in other assets and other liabilities, net | -17,358 | -10,198 |
Other | 272 | 145 |
Net Cash (Used in) Provided by Operating Activities | -45,871 | 99,621 |
Cash Flows from Investing Activities | ||
Purchases of property, plant and equipment | -47,595 | -59,128 |
Purchases of commercial paper, marketable equity securities and other investments | -905 | -101,241 |
Net (payments) proceeds from sales of businesses, property, plant and equipment and other assets | -4,331 | 157,314 |
Investments in certain businesses, net of cash acquired | 0 | -5,608 |
Net Cash Used in Investing Activities | -52,831 | -8,663 |
Cash Flows from Financing Activities | ||
Repayments of borrowings | -39,343 | -9 |
Dividends paid | -15,645 | -19,051 |
Other | 4,606 | 28 |
Net Cash Used in Financing Activities | -50,382 | -19,032 |
Effect of Currency Exchange Rate Change | -5,535 | 1,188 |
Net (Decrease) Increase in Cash and Cash Equivalents | -154,619 | 73,114 |
Beginning Cash and Cash Equivalents, Including Cash of Discontinued Operations | 773,986 | |
Beginning Cash and Cash Equivalents | 772,751 | 569,719 |
Ending Cash and Cash Equivalents | $619,367 | $642,833 |
Organization_Basis_of_Presenta
Organization, Basis of Presentation and Recent Accounting Pronouncements | 3 Months Ended | |||||||||||
Mar. 31, 2015 | ||||||||||||
Organization, Consolidation and Presentation of Financial Statements [Abstract] | ||||||||||||
Organization, Basis of Presentation and Recent Accounting Pronouncements | ORGANIZATION, BASIS OF PRESENTATION AND RECENT ACCOUNTING PRONOUNCEMENTS | |||||||||||
Graham Holdings Company (the Company), is a diversified education and media company. The Company’s Kaplan subsidiary provides a wide variety of educational services, both domestically and outside the United States. The Company’s media operations comprise the ownership and operation of cable systems and television broadcasting (through the ownership and operation of five television broadcast stations). The Company's other business operations include home health and hospice services and manufacturing. | ||||||||||||
In November 2014, the Company announced that the Board of Directors authorized management to proceed with plans for the complete legal and structural separation of Cable ONE, Inc., a wholly-owned subsidiary, from the Company. Following the proposed transaction, Cable ONE will be an independent, publicly traded company. The Company intends to complete the proposed transaction later in 2015. The proposed transaction will be structured as a tax-free spin-off of Cable ONE to the stockholders of the Company. The transaction is contingent on the satisfaction of a number of conditions, including completion of the review process by the Securities and Exchange Commission of required filings under applicable securities regulations, other applicable regulatory approvals and the final approval of transaction terms by the Company’s Board of Directors. | ||||||||||||
On February 12, 2015, Kaplan entered into a Purchase and Sale Agreement with Education Corporation of America (ECA) to sell substantially all of the assets of its KHE Campuses business, consisting of 38 nationally accredited ground campuses and certain related assets, in exchange for a preferred equity interest in ECA. The transaction is contingent upon certain regulatory and accrediting agency approvals and is expected to close in the third quarter of 2015. | ||||||||||||
Basis of Presentation – The accompanying condensed consolidated financial statements have been prepared in accordance with: (i) generally accepted accounting principles in the United States of America (GAAP) for interim financial information; (ii) the instructions to Form 10-Q; and (iii) the guidance of Rule 10-01 of Regulation S-X under the Securities and Exchange Act of 1934, as amended, for financial statements required to be filed with the Securities and Exchange Commission (SEC). They include the assets, liabilities, results of operations and cash flows of the Company, including its domestic and foreign subsidiaries that are more than 50% owned or otherwise controlled by the Company. As permitted under such rules, certain notes and other financial information normally required by GAAP have been condensed or omitted. Management believes the accompanying condensed consolidated financial statements reflect all normal and recurring adjustments necessary for a fair presentation of the Company’s financial position, results of operations, and cash flows as of and for the periods presented herein. The Company’s results of operations for the three months ended March 31, 2015 and 2014 may not be indicative of the Company’s future results. These condensed consolidated financial statements are unaudited and should be read in conjunction with the Company’s audited consolidated financial statements and the notes thereto included in the Company’s Annual Report on Form 10-K for the fiscal year ended December 31, 2014. | ||||||||||||
The year-end condensed consolidated balance sheet data was derived from audited financial statements, but does not include all disclosures required by GAAP. | ||||||||||||
Certain amounts in previously issued financial statements have been reclassified to conform to the current year presentation, which includes the reclassification of the results of operations of certain businesses as discontinued operations for all periods presented. | ||||||||||||
Use of Estimates in the Preparation of the Condensed Consolidated Financial Statements – The preparation of the condensed consolidated financial statements in conformity with GAAP requires management to make estimates and judgments that affect the amounts reported herein. Management bases its estimates and assumptions on historical experience and on various other factors that are believed to be reasonable under the circumstances. Due to the inherent uncertainty involved in making estimates, actual results reported in future periods may be affected by changes in those estimates. | ||||||||||||
Revision of Prior Period Amounts – During the preparation of the 2014 financial statements, the Company concluded that its Condensed Consolidated Statement of Cash Flows for the three months ended March 31, 2014, that was previously included in the Company's quarterly reports, should be revised to correct the impact of accounts payable and accrued expenses related to capital expenditures. The Company revised its Condensed Consolidated Statement of Cash Flows for the three months ended March 31, 2014 to properly eliminate noncash capital expenditures. The result of this correction for the three months ended March 31, 2014, was an increase in net cash used in investing activities of $22.6 million, with an offsetting increase recorded to net cash provided by operating activities during the same period. | ||||||||||||
Management has concluded that this error is not material to the previously issued Condensed Consolidated Financial Statements, and, as a result, the Company has revised the Condensed Consolidated Statement of Cash Flows for the three months ended March 31, 2014. There was no impact on the previously reported total cash and cash equivalents, Condensed Consolidated Balance Sheet or Condensed Consolidated Statement of Operations. | ||||||||||||
As detailed below, these revisions impacted the following consolidated cash flow items: | ||||||||||||
Three Months Ended March 31, 2014 | ||||||||||||
As | ||||||||||||
Previously | As | |||||||||||
(in thousands) | Reported | Revision | Revised | |||||||||
Cash Flows from Operating Activities | ||||||||||||
Decrease in Accounts Payable and Accrued Liabilities | $ | (112,811 | ) | $ | 22,566 | $ | (90,245 | ) | ||||
Net Cash Provided by Operating Activities | 77,055 | 22,566 | 99,621 | |||||||||
Cash Flows from Investing Activities | ||||||||||||
Purchases of Property, Plant and Equipment | $ | (36,562 | ) | $ | (22,566 | ) | $ | (59,128 | ) | |||
Net Cash Provided by (Used in) Investing Activities | 13,903 | (22,566 | ) | (8,663 | ) | |||||||
Assets Held for Sale – An asset or business is classified as held for sale when (i) management commits to a plan to sell the asset or business; (ii) the asset or business is available for immediate sale in its present condition; (iii) the asset or business is actively marketed for sale at a reasonable price; (iv) the sale is expected to be completed within one year; and (v) it is unlikely significant changes to the plan will be made or that the plan will be withdrawn. The assets and related liabilities are aggregated and reported separately in the Company’s condensed consolidated balance sheet. | ||||||||||||
Recently Adopted and Issued Accounting Pronouncements – In May 2014, the Financial Accounting Standards Board (FASB) issued comprehensive new guidance that supersedes all existing revenue recognition guidance. The new guidance requires revenue to be recognized when the Company transfers promised goods or services to customers in an amount that reflects the consideration to which the Company expects to be entitled in exchange for those goods or services. The new guidance also significantly expands the disclosure requirements for revenue recognition. This guidance is effective for interim and fiscal years beginning after December 15, 2016. Early adoption is not permitted. The standard permits two implementation approaches, one requiring retrospective application of the new guidance with a restatement of prior years and one requiring prospective application of the new guidance with disclosure of results under the old guidance. The Company is in the process of evaluating the impact of this new guidance on its Consolidated Financial Statements and believes such evaluation will extend over several future periods because of the significance of the changes to the Company’s policies and business processes. | ||||||||||||
In August 2014, the FASB issued new guidance that requires management to assess the Company’s ability to continue as a going concern and to provide related disclosures in certain circumstances. This guidance is effective for interim and fiscal years ending after December 15, 2016, with early adoption permitted. The Company does not expect this guidance to have an impact on its Consolidated Financial Statements. |
Discontinued_Operations
Discontinued Operations | 3 Months Ended | |||||||
Mar. 31, 2015 | ||||||||
Discontinued Operation, Additional Disclosures [Abstract] | ||||||||
Discontinued Operations | DISCONTINUED OPERATIONS | |||||||
In the third quarter of 2014, Kaplan completed the sale of three of its schools in China that were previously included as part of Kaplan International. An additional school in China was sold by Kaplan in January of 2015 which resulted in a pre-tax loss of $0.7 million. | ||||||||
On June 30, 2014, the Company and Berkshire Hathaway Inc. completed a transaction, as described in Note 4, in which Berkshire acquired a wholly-owned subsidiary of the Company that included, among other things, WPLG, a Miami-based television station. | ||||||||
The results of operations of the schools in China and WPLG are included in the Company’s Condensed Consolidated Statements of Operations as Income (Loss) from Discontinued Operations, Net of Tax, for all periods presented. The Company did not reclassify its Statements of Cash Flows or prior Condensed Consolidated Balance Sheets to reflect the various discontinued operations. | ||||||||
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 (loss) income from discontinued operations, net of tax, is presented below: | ||||||||
Three Months Ended | ||||||||
March 31 | ||||||||
(in thousands) | 2015 | 2014 | ||||||
Operating revenues | $ | — | $ | 20,294 | ||||
Operating costs and expenses | — | (13,494 | ) | |||||
Income from discontinued operations | — | 6,800 | ||||||
Provision from income taxes | — | 2,026 | ||||||
Net Income from Discontinued Operations | — | 4,774 | ||||||
Loss on sales of discontinued operations | (732 | ) | (4,737 | ) | ||||
Expense (benefit) from income taxes on sales of discontinued operations | 52 | (1,695 | ) | |||||
(Loss) Income from Discontinued Operations, Net of Tax | $ | (784 | ) | $ | 1,732 | |||
The carrying amounts of the major classes of assets and liabilities held for sale at March 31, 2015 are as follows: | ||||||||
As of | ||||||||
(in thousands) | March 31, 2015 | |||||||
Restricted cash | $ | 679 | ||||||
Accounts receivable, net | 11,452 | |||||||
Other current assets | 5,367 | |||||||
Current Assets Held for Sale | $ | 17,498 | ||||||
Property, plant and equipment, net | $ | 18,789 | ||||||
Goodwill, net | 7,526 | |||||||
Indefinite-lived intangible assets | 1,092 | |||||||
Amortized intangible assets, net | 5,787 | |||||||
Deferred charges and other assets | 751 | |||||||
Noncurrent Assets Held for Sale | $ | 33,945 | ||||||
Accounts payable and accrued liabilities | $ | 13,175 | ||||||
Deferred revenue | 12,675 | |||||||
Current Liabilities Held for Sale | $ | 25,850 | ||||||
Other liabilities | $ | 8,085 | ||||||
Noncurrent Liabilities Held for Sale | $ | 8,085 | ||||||
Investments
Investments | 3 Months Ended | |||||||
Mar. 31, 2015 | ||||||||
Investments [Abstract] | ||||||||
Investments | INVESTMENTS | |||||||
As of March 31, 2015 and December 31, 2014, the Company had commercial paper and money market investments of $449.4 million and $594.3 million, respectively, that are classified as cash, cash equivalents and restricted cash in the Company's Condensed Consolidated Balance Sheets. | ||||||||
Investments in marketable equity securities comprised the following: | ||||||||
As of | ||||||||
March 31, | December 31, | |||||||
(in thousands) | 2015 | 2014 | ||||||
Total cost | $ | 106,909 | $ | 106,909 | ||||
Net unrealized gains | 78,006 | 86,884 | ||||||
Total Fair Value | $ | 184,915 | $ | 193,793 | ||||
There were no new investments in marketable equity securities during the first three months of 2015 and 2014. There were no sales of marketable equity securities in the first three months of 2015. During the first three months of 2014, the proceeds from sales of marketable securities were $4.2 million, of which $0.4 million settled in April 2014, and net realized losses from such sales were $0.3 million. | ||||||||
As of March 31, 2014, the Company's investment in Corinthian Colleges, Inc., a publicly traded company, was in an unrealized loss position and the Company concluded that the loss was other-than-temporary and recorded a $0.5 million write-down of the investment in the first quarter of 2014. | ||||||||
As of March 31, 2015, the Company held a 40% interest in Residential Home Health Illinois, a 42.5% interest in Residential Hospice Illinois, a 40% interest in the joint venture formed between Celtic Healthcare and Allegheny Health Network (AHN) and interests in several other affiliates (see Note 4). |
Acquisitions_Dispositions_Exch
Acquisitions, Dispositions, Exchanges and Other | 3 Months Ended | ||||||||
Mar. 31, 2015 | |||||||||
Acqusitions and Dispositions [Abstract] | |||||||||
Acquisitions, Dispositions, Exchanges and Other | ACQUISITIONS, DISPOSITIONS, EXCHANGES AND OTHER | ||||||||
Acquisitions. In the first three months of 2015, the Company did not make any acquisitions. In the first three months of 2014, the Company acquired one small business included in its education division; the purchase price allocation comprised goodwill. | |||||||||
On April 1, 2014, Celtic Healthcare acquired VNA-TIP Healthcare, a provider of home health and hospice services in Missouri and Illinois. On May 30, 2014, the Company completed its acquisition of Joyce/Dayton Corp., a Dayton, OH-based manufacturer of screw jacks and other linear motion systems. On July 3, 2014, the Company completed its acquisition of an 80% interest in Residential Healthcare Group, Inc., the parent company of Residential Home Health and Residential Hospice, providers of skilled home health care and hospice services in Michigan and Illinois. Residential Healthcare Group, Inc. has a 40% ownership interest in Residential Home Health Illinois and a 42.5% ownership interest in Residential Hospice Illinois, which are accounted for as investments in affiliates. The operating results of these businesses are included in other businesses. | |||||||||
Dispositions. In the third quarter of 2014, Kaplan completed the sale of three of its schools in China that were previously included as part of Kaplan International. In January 2015, Kaplan completed the sale of an additional school in China. | |||||||||
On February 12, 2015, Kaplan entered into a Purchase and Sale Agreement with Education Corporation of America (ECA) to sell substantially all of the assets of its KHE Campuses business, consisting of 38 nationally accredited ground campuses and certain related assets, in exchange for a preferred equity interest in ECA. KHE Campuses schools that have been closed or are in the process of closing are not included in the sale transaction. The transaction is contingent upon certain regulatory and accrediting agency approvals and is expected to close in the third quarter of 2015. The KHE Campuses business disposal group is reported in assets held for sale at March 31, 2015. The revenue and operating losses related to schools that are being sold as part of the ECA transaction are as follows: | |||||||||
Three Months Ended | |||||||||
31-Mar | |||||||||
(in thousands) | 2015 | 2014 | |||||||
Revenue | $ | 61,087 | $ | 69,058 | |||||
Operating loss | $ | (3,014 | ) | $ | (2,976 | ) | |||
The carrying amounts of the major classes of assets and liabilities held for sale at March 31, 2015 are as follows: | |||||||||
As of | |||||||||
(in thousands) | March 31, 2015 | ||||||||
Restricted cash | $ | 679 | |||||||
Accounts receivable, net | 11,452 | ||||||||
Other current assets | 5,367 | ||||||||
Current Assets Held for Sale | $ | 17,498 | |||||||
Property, plant and equipment, net | $ | 18,789 | |||||||
Goodwill, net | 7,526 | ||||||||
Indefinite-lived intangible assets | 1,092 | ||||||||
Amortized intangible assets, net | 5,787 | ||||||||
Deferred charges and other assets | 751 | ||||||||
Noncurrent Assets Held for Sale | $ | 33,945 | |||||||
Accounts payable and accrued liabilities | $ | 13,175 | |||||||
Deferred revenue | 12,675 | ||||||||
Current Liabilities Held for Sale | $ | 25,850 | |||||||
Other liabilities | $ | 8,085 | |||||||
Noncurrent Liabilities Held for Sale | $ | 8,085 | |||||||
Exchanges. On June 30, 2014, the Company and Berkshire Hathaway Inc. completed a previously announced transaction in which Berkshire acquired a wholly-owned subsidiary of the Company that included, among other things, WPLG, a Miami-based television station, 2,107 Class A Berkshire shares and 1,278 Class B Berkshire shares owned by Graham Holdings and $327.7 million in cash, in exchange for 1,620,190 shares of Graham Holdings Class B common stock owned by Berkshire Hathaway (Berkshire exchange transaction). | |||||||||
Other. In January 2015, Celtic and AHN closed on the formation of a joint venture to combine each other’s home health and hospice assets in the western Pennsylvania region. Although Celtic manages the operations of the joint venture, Celtic holds a 40% interest in the joint venture, so the operating results of the joint venture are not consolidated and the pro rata operating results are included in the Company’s equity in earnings of affiliates. Celtic’s revenues from the western Pennsylvania region that are now part of the joint venture made up 29% of total Celtic revenues in 2014. | |||||||||
The Company’s income from continuing operations excludes the sold Kaplan China schools and WPLG, which have been reclassified to discontinued operations, net of tax (see Note 2). |
Goodwill_and_Other_Intangible_
Goodwill and Other Intangible Assets | 3 Months Ended | |||||||||||||||||||||||||
Mar. 31, 2015 | ||||||||||||||||||||||||||
Goodwill and Intangible Assets Disclosure [Abstract] | ||||||||||||||||||||||||||
Goodwill and Other Intangible Assets | GOODWILL AND OTHER INTANGIBLE ASSETS | |||||||||||||||||||||||||
Amortization of intangible assets for the three months ended March 31, 2015 and 2014 was $4.8 million and $2.7 million, respectively. Amortization of intangible assets is estimated to be approximately $13 million for the remainder of 2015, $17 million in 2016, $14 million in 2017, $13 million in 2018, $12 million in 2019 and $22 million thereafter. | ||||||||||||||||||||||||||
The changes in the carrying amount of goodwill, by segment, were as follows: | ||||||||||||||||||||||||||
(in thousands) | Education | Cable | Television | Other | Total | |||||||||||||||||||||
Broadcasting | Businesses | |||||||||||||||||||||||||
Balance as of December 31, 2014 | ||||||||||||||||||||||||||
Goodwill | $ | 1,057,226 | $ | 85,488 | $ | 168,345 | $ | 145,992 | $ | 1,457,051 | ||||||||||||||||
Accumulated impairment losses | (102,259 | ) | — | — | (6,082 | ) | (108,341 | ) | ||||||||||||||||||
954,967 | 85,488 | 168,345 | 139,910 | 1,348,710 | ||||||||||||||||||||||
Dispositions | — | — | — | (7,614 | ) | (7,614 | ) | |||||||||||||||||||
Reclassification to assets held for sale | (7,526 | ) | — | — | — | (7,526 | ) | |||||||||||||||||||
Foreign currency exchange rate changes | (19,219 | ) | — | — | — | (19,219 | ) | |||||||||||||||||||
Balance as of March 31, 2015 | ||||||||||||||||||||||||||
Goodwill | 1,030,481 | 85,488 | 168,345 | 138,378 | 1,422,692 | |||||||||||||||||||||
Accumulated impairment losses | (102,259 | ) | — | — | (6,082 | ) | (108,341 | ) | ||||||||||||||||||
$ | 928,222 | $ | 85,488 | $ | 168,345 | $ | 132,296 | $ | 1,314,351 | |||||||||||||||||
The changes in carrying amount of goodwill at the Company’s education division were as follows: | ||||||||||||||||||||||||||
(in thousands) | Higher | Test | Kaplan | Total | ||||||||||||||||||||||
Education | Preparation | International | ||||||||||||||||||||||||
Balance as of December 31, 2014 | ||||||||||||||||||||||||||
Goodwill | $ | 409,884 | $ | 166,098 | $ | 481,244 | $ | 1,057,226 | ||||||||||||||||||
Accumulated impairment losses | — | (102,259 | ) | — | (102,259 | ) | ||||||||||||||||||||
409,884 | 63,839 | 481,244 | 954,967 | |||||||||||||||||||||||
Reclassification to assets held for sale | (7,526 | ) | — | — | (7,526 | ) | ||||||||||||||||||||
Foreign currency exchange rate changes | (169 | ) | — | (19,050 | ) | (19,219 | ) | |||||||||||||||||||
Balance as of March 31, 2015 | ||||||||||||||||||||||||||
Goodwill | 402,189 | 166,098 | 462,194 | 1,030,481 | ||||||||||||||||||||||
Accumulated impairment losses | — | (102,259 | ) | — | (102,259 | ) | ||||||||||||||||||||
$ | 402,189 | $ | 63,839 | $ | 462,194 | $ | 928,222 | |||||||||||||||||||
Other intangible assets consist of the following: | ||||||||||||||||||||||||||
As of March 31, 2015 | As of December 31, 2014 | |||||||||||||||||||||||||
(in thousands) | Useful Life | Gross | Accumulated | Net Carrying | Gross | Accumulated | Net | |||||||||||||||||||
Range | Carrying | Amortization | Amount | Carrying | Amortization | Carrying | ||||||||||||||||||||
Amount | Amount | Amount | ||||||||||||||||||||||||
Amortized Intangible Assets | ||||||||||||||||||||||||||
Noncompete agreements | 2–5 years | $ | 1,680 | $ | 1,070 | $ | 610 | $ | 2,500 | $ | 1,590 | $ | 910 | |||||||||||||
Student and customer relationships | 2–10 years | 103,480 | 49,503 | 53,977 | 104,685 | 47,539 | 57,146 | |||||||||||||||||||
Databases and technology | 3–5 years | 10,518 | 9,024 | 1,494 | 10,501 | 8,827 | 1,674 | |||||||||||||||||||
Trade names and trademarks | 2–10 years | 54,281 | 20,812 | 33,469 | 55,452 | 19,724 | 35,728 | |||||||||||||||||||
Other | 1–25 years | 6,317 | 5,013 | 1,304 | 8,969 | 7,480 | 1,489 | |||||||||||||||||||
$ | 176,276 | $ | 85,422 | $ | 90,854 | $ | 182,107 | $ | 85,160 | $ | 96,947 | |||||||||||||||
Indefinite-Lived Intangible Assets | ||||||||||||||||||||||||||
Franchise agreements | $ | 496,321 | $ | 496,321 | ||||||||||||||||||||||
Licensure and accreditation | 994 | 6,781 | ||||||||||||||||||||||||
Other | 13,651 | 13,651 | ||||||||||||||||||||||||
$ | 510,966 | $ | 516,753 | |||||||||||||||||||||||
Debt
Debt | 3 Months Ended | |||||||
Mar. 31, 2015 | ||||||||
Debt Disclosure [Abstract] | ||||||||
Debt | DEBT | |||||||
The Company’s borrowings consist of the following: | ||||||||
As of | ||||||||
March 31, | December 31, | |||||||
(in thousands) | 2015 | 2014 | ||||||
7.25% unsecured notes due February 1, 2019 | $ | 398,411 | $ | 398,308 | ||||
AUD Revolving credit borrowing | — | 40,927 | ||||||
Other indebtedness | 6,405 | 6,685 | ||||||
Total Debt | 404,816 | 445,920 | ||||||
Less: current portion | (5,171 | ) | (46,375 | ) | ||||
Total Long-Term Debt | $ | 399,645 | $ | 399,545 | ||||
The Company’s other indebtedness at March 31, 2015 and December 31, 2014 is at interest rates from 0% to 6% and matures from 2015 to 2017. | ||||||||
On March 9, 2015, the Company repaid the AUD 50 million borrowed under its revolving credit facility. On the same day, the AUD 50 million interest rate swap agreements matured. | ||||||||
During the three months ended March 31, 2015 and 2014, the Company had average borrowings outstanding of approximately $435.8 million and $451.2 million, respectively, at average annual interest rates of approximately 7.1% and 7.0%, respectively. During the three months ended March 31, 2015 and 2014, the Company incurred net interest expense of $8.0 million and $8.2 million, respectively. | ||||||||
At March 31, 2015, the fair value of the Company’s 7.25% unsecured notes, based on quoted market prices, totaled $451.3 million, compared with the carrying amount of $398.4 million. At December 31, 2014, the fair value of the Company’s 7.25% unsecured notes, based on quoted market prices, totaled $450.3 million, compared with the carrying amount of $398.3 million. The carrying value of the Company’s other unsecured debt at March 31, 2015 approximates fair value. |
Fair_Value_Measurements
Fair Value Measurements | 3 Months Ended | |||||||||||
Mar. 31, 2015 | ||||||||||||
Fair Value Disclosures [Abstract] | ||||||||||||
Fair Value Disclosures | FAIR VALUE MEASUREMENTS | |||||||||||
The Company’s financial assets and liabilities measured at fair value on a recurring basis were as follows: | ||||||||||||
As of March 31, 2015 | ||||||||||||
(in thousands) | Level 1 | Level 2 | Total | |||||||||
Assets | ||||||||||||
Money market investments (1) | $ | — | $ | 227,485 | $ | 227,485 | ||||||
Commercial paper (2) | 221,962 | — | 221,962 | |||||||||
Marketable equity securities (3) | 184,915 | — | 184,915 | |||||||||
Other current investments (4) | 9,917 | 20,148 | 30,065 | |||||||||
Total Financial Assets | $ | 416,794 | $ | 247,633 | $ | 664,427 | ||||||
Liabilities | ||||||||||||
Deferred compensation plan liabilities (5) | $ | — | $ | 69,836 | $ | 69,836 | ||||||
7.25% unsecured notes (6) | — | 451,256 | 451,256 | |||||||||
Total Financial Liabilities | $ | — | $ | 521,092 | $ | 521,092 | ||||||
As of December 31, 2014 | ||||||||||||
(in thousands) | Level 1 | Level 2 | Total | |||||||||
Assets | ||||||||||||
Money market investments (1) | $ | — | $ | 368,131 | $ | 368,131 | ||||||
Commercial paper (2) | 226,197 | — | 226,197 | |||||||||
Marketable equity securities (3) | 193,793 | — | 193,793 | |||||||||
Other current investments (4) | 11,788 | 21,171 | 32,959 | |||||||||
Total Financial Assets | $ | 431,778 | $ | 389,302 | $ | 821,080 | ||||||
Liabilities | ||||||||||||
Deferred compensation plan liabilities (5) | $ | — | $ | 70,661 | $ | 70,661 | ||||||
7.25% unsecured notes (6) | — | 450,344 | 450,344 | |||||||||
AUD revolving credit borrowing (6) | — | 40,927 | 40,927 | |||||||||
Interest rate swap (7) | — | 179 | 179 | |||||||||
Total Financial Liabilities | $ | — | $ | 562,111 | $ | 562,111 | ||||||
____________ | ||||||||||||
-1 | The Company’s money market investments are included in cash, cash equivalents and restricted cash. | |||||||||||
-2 | The Company's commercial paper investments with original maturities of 90 days or less are included in cash and cash equivalents. | |||||||||||
-3 | The Company’s investments in marketable equity securities are classified as available-for-sale. | |||||||||||
-4 | Includes U.S. Government Securities, corporate bonds, mutual funds and time deposits. | |||||||||||
-5 | 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. | |||||||||||
-6 | See Note 6 for carrying amount of these notes and borrowing. The fair value of long-term debt is determined based on a number of observable inputs, including the current market activity of the Company’s publicly traded notes, trends in investor demands and market values of comparable publicly traded debt. | |||||||||||
-7 | 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. |
Earnings_Per_Share
Earnings Per Share | 3 Months Ended | |||||||
Mar. 31, 2015 | ||||||||
Earnings Per Share [Abstract] | ||||||||
Earnings Per Share | EARNINGS PER SHARE | |||||||
On June 30, 2014, the Company acquired 1,620,190 of its Class B common stock owned by Berkshire Hathaway, as described in Note 4. | ||||||||
The Company's unvested restricted stock awards contain nonforfeitable rights to dividends and, therefore, are considered participating securities for purposes of computing earnings per share pursuant to the two-class method. The diluted earnings per share computed under the two-class method is lower than the diluted earnings per share computed under the treasury stock method, resulting in the presentation of the lower amount in diluted earnings per share. The computation of the earnings per share under the two-class method excludes the income attributable to the unvested restricted stock awards from the numerator and excludes the dilutive impact of those underlying shares from the denominator. | ||||||||
The following reflects the Company's income from continuing operations and share data used in the basic and diluted earnings per share computations using the two-class method: | ||||||||
Three Months Ended | ||||||||
March 31 | ||||||||
(in thousands, except per share amounts) | 2015 | 2014 | ||||||
Numerator: | ||||||||
Numerator for basic earnings per share: | ||||||||
Income from continuing operations attributable to Graham Holdings Company common stockholders | $ | 21,390 | $ | 130,366 | ||||
Less: Dividends-common stock outstanding and unvested restricted shares | (30,870 | ) | (37,675 | ) | ||||
Undistributed (losses) earnings | (9,480 | ) | 92,691 | |||||
Percent allocated to common stockholders(1) | 100 | % | 98.33 | % | ||||
(9,480 | ) | 91,141 | ||||||
Add: Dividends-common stock outstanding | 30,228 | 37,044 | ||||||
Numerator for basic earnings per share | $ | 20,748 | $ | 128,185 | ||||
Add: Additional undistributed earnings due to dilutive stock options | — | 5 | ||||||
Numerator for diluted earnings per share | $ | 20,748 | $ | 128,190 | ||||
Denominator: | ||||||||
Denominator for basic earnings per share: | ||||||||
Weighted average shares outstanding | 5,704 | 7,275 | ||||||
Add: Effect of dilutive stock options | 33 | 26 | ||||||
Denominator for diluted earnings per share | 5,737 | 7,301 | ||||||
Graham Holdings Company Common Stockholders: | ||||||||
Basic earnings per share from continuing operations | $ | 3.64 | $ | 17.62 | ||||
Diluted earnings per share from continuing operations | $ | 3.62 | $ | 17.56 | ||||
____________ | ||||||||
-1 | Percent of undistributed losses allocated to common stockholders is 100% in the first quarter of 2015 as participating securities are not contractually obligated to share in losses. | |||||||
Diluted earnings per share excludes the following weighted average potential common shares, as the effect would be antidilutive, as computed under the treasury stock method: | ||||||||
Three Months Ended | ||||||||
March 31 | ||||||||
(in thousands) | 2015 | 2014 | ||||||
Weighted average restricted stock | 54 | 51 | ||||||
The diluted earnings per share amounts for the three months ended March 31, 2015 exclude the effects of 50,000 stock options outstanding as their inclusion would have been antidilutive. The diluted earnings per share amounts for the three months ended March 31, 2014 exclude the effects of 5,000 stock options outstanding as their inclusion would have been antidilutive. The diluted earnings per share amounts for the three months ended March 31, 2015 exclude the effects of 5,850 restricted stock awards as their inclusion would have been antidilutive. The diluted earnings per share amounts for the three months ended March 31, 2014 exclude the effects of 5,550 restricted stock awards, as their inclusion would have been antidilutive. | ||||||||
The Company declared regular dividends totaling $5.30 and $5.10 for the three months ended March 31, 2015 and March 31, 2014, respectively. |
Pension_and_Postretirement_Pla
Pension and Postretirement Plans | 3 Months Ended | |||||||
Mar. 31, 2015 | ||||||||
General Discussion of Pension and Other Postretirement Benefits [Abstract] | ||||||||
Pension and Other Postretirement Benefits Disclosure | PENSION AND POSTRETIREMENT PLANS | |||||||
Defined Benefit Plans. The total benefit arising from the Company’s defined benefit pension plans, including a portion included in discontinued operations, consists of the following components: | ||||||||
Three Months Ended March 31 | ||||||||
(in thousands) | 2015 | 2014 | ||||||
Service cost | $ | 7,252 | $ | 7,537 | ||||
Interest cost | 12,780 | 13,082 | ||||||
Expected return on assets | (31,545 | ) | (30,263 | ) | ||||
Amortization of prior service cost | 81 | 82 | ||||||
Recognized actuarial gain | — | (7,038 | ) | |||||
Net Periodic Benefit | (11,432 | ) | (16,600 | ) | ||||
Early retirement programs expense | — | 4,490 | ||||||
Total Benefit | $ | (11,432 | ) | $ | (12,110 | ) | ||
For the three months ended March 31, 2014, the net periodic benefit for the Company's pension plans, as reported above, includes costs of $0.1 million reported in discontinued operations. | ||||||||
In the first quarter of 2014, the Company recorded $4.5 million related to a Separation Incentive Program for certain Corporate employees, which is being funded from the assets of the Company's pension plan. | ||||||||
The total cost arising from the Company’s Supplemental Executive Retirement Plan (SERP), including a portion included in discontinued operations, consists of the following components: | ||||||||
Three Months Ended March 31 | ||||||||
(in thousands) | 2015 | 2014 | ||||||
Service cost | $ | 509 | $ | 373 | ||||
Interest cost | 1,135 | 1,085 | ||||||
Amortization of prior service cost | 114 | 12 | ||||||
Recognized actuarial loss | 878 | 375 | ||||||
Net Periodic Cost | $ | 2,636 | $ | 1,845 | ||||
For the three months ended March 31, 2014, the net periodic cost for the Company's SERP, as reported above, includes costs of $0.1 million reported in discontinued operations. | ||||||||
Defined Benefit Plan Assets. The Company’s defined benefit pension obligations are funded by a portfolio made up of a relatively small number of stocks and high-quality fixed-income securities that are held by a third-party trustee. The assets of the Company’s pension plan were allocated as follows: | ||||||||
As of | ||||||||
March 31, | December 31, | |||||||
2015 | 2014 | |||||||
U.S. equities | 55 | % | 59 | % | ||||
U.S. fixed income | 12 | % | 13 | % | ||||
International equities | 33 | % | 28 | % | ||||
100 | % | 100 | % | |||||
Essentially all of the assets are actively managed by two investment companies. The goal of the investment managers is to produce moderate long-term growth in the value of these assets, while protecting them against large decreases in value. Both of these managers may invest in a combination of equity and fixed-income securities and cash. The managers are not permitted to invest in securities of the Company or in alternative investments. The investment managers cannot invest more than 20% of the assets at the time of purchase in the stock of Berkshire Hathaway or more than 10% of the assets in the securities of any other single issuer, except for obligations of the U.S. Government, without receiving prior approval by the Plan administrator. As of March 31, 2015, the managers can invest no more than 24% of the assets in international stocks, at the time the investment is made, and no less than 10% of the assets could be invested in fixed-income securities. None of the assets is managed internally by the Company. | ||||||||
In determining the expected rate of return on plan assets, the Company considers the relative weighting of plan assets, the historical performance of total plan assets and individual asset classes and economic and other indicators of future performance. In addition, the Company may consult with and consider the input of financial and other professionals in developing appropriate return benchmarks. | ||||||||
The Company evaluated its defined benefit pension plan asset portfolio for the existence of significant concentrations (defined as greater than 10% of plan assets) of credit risk as of March 31, 2015. Types of concentrations that were evaluated include, but are not limited to, investment concentrations in a single entity, type of industry, foreign country and individual fund. At March 31, 2015, the pension plan held common stock in one investment that exceeded 10% of total plan assets, valued at $646.5 million, or 25% of total plan assets. At December 31, 2014, the pension plan held common stock in two investments that exceeded 10% of total plan assets, valued at $730.6 million, or 30% of total plan assets. At March 31, 2015 and December 31, 2014, the pension plan held investments in one foreign country that exceeded 10% of total plan assets. These investments were valued at $648.7 million and $468.0 million at March 31, 2015 and December 31, 2014, respectively, or approximately 25% and 19%, respectively, of total plan assets. | ||||||||
Other Postretirement Plans. The total cost arising from the Company’s other postretirement plans consists of the following components: | ||||||||
Three Months Ended March 31 | ||||||||
(in thousands) | 2015 | 2014 | ||||||
Service cost | $ | 333 | $ | 375 | ||||
Interest cost | 325 | 362 | ||||||
Amortization of prior service credit | (126 | ) | (196 | ) | ||||
Recognized actuarial gain | (249 | ) | (519 | ) | ||||
Net Periodic Cost | $ | 283 | $ | 22 | ||||
Other_NonOperating_Income_Expe
Other Non-Operating Income (Expense) | 3 Months Ended | |||||||
Mar. 31, 2015 | ||||||||
Other Nonoperating Income (Expense) [Abstract] | ||||||||
Other Non-Operating Income (Expense) | OTHER NON-OPERATING (EXPENSE) INCOME | |||||||
A summary of non-operating (expense) income is as follows: | ||||||||
Three Months Ended | ||||||||
March 31 | ||||||||
(in thousands) | 2015 | 2014 | ||||||
Foreign currency (loss) gain, net | $ | (6,827 | ) | $ | 5,037 | |||
Gain on formation of joint venture | 5,972 | — | ||||||
Gain on sale of headquarters building | — | 127,670 | ||||||
Losses on sales or write-down of marketable equity securities | — | (785 | ) | |||||
Other, net | (250 | ) | 1,351 | |||||
Total Other Non-Operating (Expense) Income | $ | (1,105 | ) | $ | 133,273 | |||
In January 2015, Celtic contributed assets to a joint venture entered into with AHN in exchange for a 40% equity interest, resulting in the Company recording a $6.0 million gain (see Note 4). The Company used an income and market approach to value the equity interest. The measurement of the equity interest in the joint venture is classified as a Level 3 fair value assessment due to the significance of unobservable inputs developed in the determination of the fair value. | ||||||||
On March 27, 2014, the Company completed the sale of its headquarters building for $158 million. In connection with the sale, the Company recorded a $127.7 million pre-tax gain. |
Accumulated_Other_Comprehensiv
Accumulated Other Comprehensive Income (Loss) | 3 Months Ended | |||||||||||||||||||||||
Mar. 31, 2015 | ||||||||||||||||||||||||
Accumulated Other Comprehensive Income (Loss), Net of Tax [Abstract] | ||||||||||||||||||||||||
Accumulated Other Comprehensive Income | ACCUMULATED OTHER COMPREHENSIVE INCOME | |||||||||||||||||||||||
The other comprehensive (loss) income consists of the following components: | ||||||||||||||||||||||||
Three Months Ended March 31 | ||||||||||||||||||||||||
2015 | 2014 | |||||||||||||||||||||||
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 | $ | (12,088 | ) | $ | — | $ | (12,088 | ) | $ | 746 | $ | — | $ | 746 | ||||||||||
Adjustment for sale of a business with foreign operations | (41 | ) | — | (41 | ) | — | — | — | ||||||||||||||||
(12,129 | ) | — | (12,129 | ) | 746 | — | 746 | |||||||||||||||||
Unrealized (losses) gains on available-for-sale securities: | ||||||||||||||||||||||||
Unrealized (losses) gains for the period, net | (8,878 | ) | 3,552 | (5,326 | ) | 27,738 | (11,096 | ) | 16,642 | |||||||||||||||
Reclassification adjustment for write-down and realization of loss on sale of available-for-sale securities included in net income | — | — | — | 785 | (314 | ) | 471 | |||||||||||||||||
(8,878 | ) | 3,552 | (5,326 | ) | 28,523 | (11,410 | ) | 17,113 | ||||||||||||||||
Pension and other postretirement plans: | ||||||||||||||||||||||||
Amortization of net prior service cost (credit) included in net income | 69 | (27 | ) | 42 | (102 | ) | 40 | (62 | ) | |||||||||||||||
Amortization of net actuarial loss (gain) included in net income | 629 | (252 | ) | 377 | (7,182 | ) | 2,873 | (4,309 | ) | |||||||||||||||
698 | (279 | ) | 419 | (7,284 | ) | 2,913 | (4,371 | ) | ||||||||||||||||
Cash flow hedge: | ||||||||||||||||||||||||
Gain for the period | 179 | (71 | ) | 108 | 172 | (69 | ) | 103 | ||||||||||||||||
Other Comprehensive (Loss) Income | $ | (20,130 | ) | $ | 3,202 | $ | (16,928 | ) | $ | 22,157 | $ | (8,566 | ) | $ | 13,591 | |||||||||
The accumulated balances related to each component of other comprehensive income are as follows: | ||||||||||||||||||||||||
(in thousands, net of taxes) | Cumulative | Unrealized Gain | Unrealized Gain | Cash Flow | Accumulated | |||||||||||||||||||
Foreign | on Available-for- | on Pensions | Hedge | Other | ||||||||||||||||||||
Currency | Sale Securities | and Other | Comprehensive | |||||||||||||||||||||
Translation | Postretirement | Income | ||||||||||||||||||||||
Adjustment | Plans | |||||||||||||||||||||||
Balance as of December 31, 2014 | $ | 8,548 | $ | 52,130 | $ | 392,910 | $ | (108 | ) | $ | 453,480 | |||||||||||||
Other comprehensive (loss) income before reclassifications | (12,088 | ) | (5,326 | ) | — | 29 | (17,385 | ) | ||||||||||||||||
Net amount reclassified from accumulated other comprehensive income | (41 | ) | — | 419 | 79 | 457 | ||||||||||||||||||
Other comprehensive (loss) income, net of tax | (12,129 | ) | (5,326 | ) | 419 | 108 | (16,928 | ) | ||||||||||||||||
Balance as of March 31, 2015 | $ | (3,581 | ) | $ | 46,804 | $ | 393,329 | $ | — | $ | 436,552 | |||||||||||||
The amounts and line items of reclassifications out of Accumulated Other Comprehensive Income are as follows: | ||||||||||||||||||||||||
Three Months Ended | Affected Line Item in the Condensed Consolidated Statement of Operations | |||||||||||||||||||||||
March 31 | ||||||||||||||||||||||||
(in thousands) | 2015 | 2014 | ||||||||||||||||||||||
Foreign Currency Translation Adjustments: | ||||||||||||||||||||||||
Adjustment for sale of a business with foreign operations | $ | (41 | ) | $ | — | (Loss) Income from Discontinued | ||||||||||||||||||
Operations, Net of Tax | ||||||||||||||||||||||||
Unrealized Gains on Available-for-sale Securities: | ||||||||||||||||||||||||
Realized loss for the period | $ | — | $ | 785 | Other (expense) income, net | |||||||||||||||||||
— | (314 | ) | Provision for Income Taxes | |||||||||||||||||||||
— | 471 | Net of Tax | ||||||||||||||||||||||
Pension and Other Postretirement Plans: | ||||||||||||||||||||||||
Amortization of net prior service cost (credit) | 69 | (102 | ) | -1 | ||||||||||||||||||||
Amortization of net actuarial loss (gain) | 629 | (7,182 | ) | -1 | ||||||||||||||||||||
698 | (7,284 | ) | Before tax | |||||||||||||||||||||
(279 | ) | 2,913 | Provision for Income Taxes | |||||||||||||||||||||
419 | (4,371 | ) | Net of Tax | |||||||||||||||||||||
Cash Flow Hedge | ||||||||||||||||||||||||
132 | 212 | Interest expense | ||||||||||||||||||||||
(53 | ) | (85 | ) | Provision for Income Taxes | ||||||||||||||||||||
79 | 127 | Net of Tax | ||||||||||||||||||||||
Total reclassification for the period | $ | 457 | $ | (3,773 | ) | Net of Tax | ||||||||||||||||||
____________ | ||||||||||||||||||||||||
-1 | These accumulated other comprehensive income components are included in the computation of net periodic pension and postretirement plan cost (see Note 9). |
Contingencies
Contingencies | 3 Months Ended |
Mar. 31, 2015 | |
Commitments and Contingencies Disclosure [Abstract] | |
Contingencies | CONTINGENCIES |
Litigation and Legal Matters. The Company and its subsidiaries are involved in various legal proceedings that arise in the ordinary course of its business. Although the outcomes of the legal claims and proceedings against the Company cannot be predicted with certainty, based on currently available information, management believes that there are no existing claims or proceedings that are likely to have a material effect on the Company's business, financial condition, results of operations or cash flows. Also, based on currently available information, management is of the opinion that the exposure to future material losses from existing legal proceedings is not reasonably possible, or that future material losses in excess of the amounts accrued are not reasonably possible. | |
Certain Kaplan subsidiaries are subject to two unsealed cases filed by former employees that include, among other allegations, claims under the False Claims Act relating to eligibility for Title IV funding. The U.S. Government declined to intervene in all cases, and, as previously reported, court decisions either dismissed the cases in their entirety or narrowed the scope of their allegations. The two cases are captioned: United States of America ex rel. Carlos Urquilla-Diaz et al. v. Kaplan University et al. (unsealed March 25, 2008) and United States of America ex rel. Charles Jajdelski v. Kaplan Higher Education Corp. et al. (unsealed January 6, 2009). | |
On August 17, 2011, the U.S. District Court for the Southern District of Florida issued a series of rulings in the Diaz case, which included three separate complaints: Diaz, Wilcox and Gillespie. The court dismissed the Wilcox complaint in its entirety; dismissed all False Claims Act allegations in the Diaz complaint, leaving only an individual employment claim; and dismissed in part the Gillespie complaint, thereby limiting the scope and time frame of its False Claims Act allegations regarding compliance with the U.S. Federal Rehabilitation Act. On October 31, 2012, the court entered summary judgment in favor of the Company as to the sole remaining employment claim in the Diaz complaint. On July 16, 2013, the court likewise entered summary judgment in favor of the Company on all remaining claims in the Gillespie complaint. Diaz and Gillespie each appealed to the U.S. Court of Appeals for the Eleventh Judicial Court. Arguments on both appeals were heard on February 3, 2015. On March 11, 2015, the court issued a decision affirming the lower court's dismissal of all of Gillespie's claims and three of the four Diaz claims but reversing and remanding on one remaining claim. | |
On July 7, 2011, the U.S. District Court for the District of Nevada dismissed the Jajdelski complaint in its entirety and entered a final judgment in favor of Kaplan. On February 13, 2013, the U.S. Circuit Court for the Ninth Judicial Circuit affirmed the dismissal in part and reversed the dismissal on one allegation under the False Claims Act relating to eligibility for Title IV funding based on claims of false attendance. The surviving claim was remanded to the District Court, where Kaplan has moved for summary judgment, which the court granted on March 9, 2015; this ruling could be appealed by the plaintiff. | |
ED Program Reviews. The U.S. Department of Education (ED) has undertaken program reviews at various KHE locations. Currently, there are five pending program reviews, including the ED’s final reports on the program reviews at KHE’s Broomall, PA, and Pittsburgh, PA, locations, and the program review at Kaplan University. | |
The Company does not expect the open program reviews to have a material impact on KHE; however, the results of open program reviews and their impact on Kaplan’s operations are uncertain. | |
The 90/10 Rule. Under regulations referred to as the 90/10 rule, a KHE school would lose its eligibility to participate in Title IV programs for a period of at least two fiscal years if the institution derives more than 90% of its receipts from Title IV programs, as calculated on a cash basis in accordance with the Higher Education Act and applicable ED regulations, in each of two consecutive fiscal years. An institution with Title IV receipts exceeding 90% for a single fiscal year would be placed on provisional certification and may be subject to other enforcement measures. The 90/10 rule calculations are performed for each OPEID unit. KHE is taking various measures to reduce the percentage of its receipts attributable to Title IV funds, including modifying student payment options; emphasizing direct-pay and employer-paid education programs; encouraging students to carefully evaluate the amount of their Title IV borrowing; eliminating some programs; cash-matching; and developing and offering additional non-Title IV-eligible certificate preparation, professional development and continuing education programs. While there can be no guarantee that these measures will be adequate to prevent the 90/10 ratio at some of the schools from exceeding 90% in the future, management currently estimates that each of KHE's continuing operations campuses will be 90/10 compliant in 2015. |
Business_Segments
Business Segments | 3 Months Ended | |||||||
Mar. 31, 2015 | ||||||||
Segment Reporting [Abstract] | ||||||||
Business Segments | BUSINESS SEGMENTS | |||||||
The Company has six reportable segments: Kaplan Higher Education, Kaplan Test Preparation, Kaplan International, cable, television broadcasting and other businesses. | ||||||||
The following table summarizes financial information related to each of the Company’s business segments: | ||||||||
Three Months Ended | ||||||||
31-Mar | ||||||||
(in thousands) | 2015 | 2014 | ||||||
Operating Revenues | ||||||||
Education | $ | 500,602 | $ | 522,154 | ||||
Cable | 198,723 | 203,921 | ||||||
Television broadcasting | 83,564 | 85,651 | ||||||
Other businesses | 63,259 | 24,913 | ||||||
Corporate office | — | — | ||||||
Intersegment elimination | — | (98 | ) | |||||
$ | 846,148 | $ | 836,541 | |||||
Income (Loss) From Operations | ||||||||
Education | $ | (22,849 | ) | $ | 1,862 | |||
Cable | 39,076 | 41,162 | ||||||
Television broadcasting | 38,562 | 44,386 | ||||||
Other businesses | (5,162 | ) | (10,747 | ) | ||||
Corporate office | (3,072 | ) | 2,206 | |||||
$ | 46,555 | $ | 78,869 | |||||
Equity in (Losses) Earnings of Affiliates, Net | (404 | ) | 4,052 | |||||
Interest Expense, Net | (7,962 | ) | (8,221 | ) | ||||
Other (Expense) Income, Net | (1,105 | ) | 133,273 | |||||
Income from Continuing Operations Before Income Taxes | $ | 37,084 | $ | 207,973 | ||||
Depreciation of Property, Plant and Equipment | ||||||||
Education | $ | 18,528 | $ | 16,416 | ||||
Cable | 36,348 | 33,787 | ||||||
Television broadcasting | 2,109 | 1,994 | ||||||
Other businesses | 1,302 | 520 | ||||||
Corporate office | 258 | 500 | ||||||
$ | 58,545 | $ | 53,217 | |||||
Amortization of Intangible Assets | ||||||||
Education | $ | 1,507 | $ | 1,924 | ||||
Cable | 31 | 35 | ||||||
Television broadcasting | 63 | — | ||||||
Other businesses | 3,168 | 758 | ||||||
Corporate office | — | — | ||||||
$ | 4,769 | $ | 2,717 | |||||
Net Pension (Credit) Expense | ||||||||
Education | $ | 3,947 | $ | 4,143 | ||||
Cable | 975 | 864 | ||||||
Television broadcasting | 391 | 320 | ||||||
Other businesses | 193 | 164 | ||||||
Corporate office | (16,938 | ) | (17,679 | ) | ||||
$ | (11,432 | ) | $ | (12,188 | ) | |||
Asset information for the Company’s business segments are as follows: | ||||||||
As of | ||||||||
(in thousands) | March 31, | December 31, | ||||||
2015 | 2014 | |||||||
Identifiable Assets | ||||||||
Education | $ | 1,535,949 | $ | 1,781,543 | ||||
Cable television | 1,254,511 | 1,253,764 | ||||||
Television broadcasting | 299,983 | 305,426 | ||||||
Other businesses | 488,748 | 518,807 | ||||||
Corporate office | 509,720 | 524,627 | ||||||
$ | 4,088,911 | $ | 4,384,167 | |||||
Investments in Marketable Equity Securities | 184,915 | 193,793 | ||||||
Investments in Affiliates | 36,120 | 19,811 | ||||||
Prepaid Pension Cost | 1,164,001 | 1,152,488 | ||||||
Assets Held for Sale | 51,443 | 2,060 | ||||||
Total Assets | $ | 5,525,390 | $ | 5,752,319 | ||||
The Company’s education division comprises the following operating segments: | ||||||||
Three Months Ended | ||||||||
31-Mar | ||||||||
(in thousands) | 2015 | 2014 | ||||||
Operating Revenues | ||||||||
Higher education | $ | 237,568 | $ | 253,779 | ||||
Test preparation | 69,226 | 67,804 | ||||||
Kaplan international | 192,081 | 198,847 | ||||||
Kaplan corporate and other | 1,859 | 2,014 | ||||||
Intersegment elimination | (132 | ) | (290 | ) | ||||
$ | 500,602 | $ | 522,154 | |||||
Income (Loss) from Operations | ||||||||
Higher education | $ | 593 | $ | 13,144 | ||||
Test preparation | (4,334 | ) | (6,628 | ) | ||||
Kaplan international | 7,717 | 9,858 | ||||||
Kaplan corporate and other | (26,857 | ) | (14,556 | ) | ||||
Intersegment elimination | 32 | 44 | ||||||
$ | (22,849 | ) | $ | 1,862 | ||||
Depreciation of Property, Plant and Equipment | ||||||||
Higher education | $ | 4,828 | $ | 7,740 | ||||
Test preparation | 2,890 | 3,784 | ||||||
Kaplan international | 4,654 | 4,680 | ||||||
Kaplan corporate and other | 6,156 | 212 | ||||||
$ | 18,528 | $ | 16,416 | |||||
Amortization of Intangible Assets | $ | 1,507 | $ | 1,924 | ||||
Pension Expense | ||||||||
Higher education | $ | 2,532 | $ | 2,628 | ||||
Test preparation | 775 | 722 | ||||||
Kaplan international | 106 | 89 | ||||||
Kaplan corporate and other | 534 | 704 | ||||||
$ | 3,947 | $ | 4,143 | |||||
Identifiable assets for the Company’s education division consist of the following: | ||||||||
As of | ||||||||
(in thousands) | March 31, | December 31, | ||||||
2015 | 2014 | |||||||
Identifiable assets | ||||||||
Higher education | $ | 557,851 | $ | 749,421 | ||||
Test preparation | 169,493 | 167,055 | ||||||
Kaplan international | 776,129 | 838,148 | ||||||
Kaplan corporate and other | 32,476 | 26,919 | ||||||
$ | 1,535,949 | $ | 1,781,543 | |||||
Organization_Basis_of_Presenta1
Organization, Basis of Presentation And Recent Accounting Pronouncements (Policies) | 3 Months Ended |
Mar. 31, 2015 | |
Organization, Consolidation and Presentation of Financial Statements [Abstract] | |
Basis of Presentation | Basis of Presentation – The accompanying condensed consolidated financial statements have been prepared in accordance with: (i) generally accepted accounting principles in the United States of America (GAAP) for interim financial information; (ii) the instructions to Form 10-Q; and (iii) the guidance of Rule 10-01 of Regulation S-X under the Securities and Exchange Act of 1934, as amended, for financial statements required to be filed with the Securities and Exchange Commission (SEC). They include the assets, liabilities, results of operations and cash flows of the Company, including its domestic and foreign subsidiaries that are more than 50% owned or otherwise controlled by the Company. As permitted under such rules, certain notes and other financial information normally required by GAAP have been condensed or omitted. Management believes the accompanying condensed consolidated financial statements reflect all normal and recurring adjustments necessary for a fair presentation of the Company’s financial position, results of operations, and cash flows as of and for the periods presented herein. The Company’s results of operations for the three months ended March 31, 2015 and 2014 may not be indicative of the Company’s future results. These condensed consolidated financial statements are unaudited and should be read in conjunction with the Company’s audited consolidated financial statements and the notes thereto included in the Company’s Annual Report on Form 10-K for the fiscal year ended December 31, 2014. |
The year-end condensed consolidated balance sheet data was derived from audited financial statements, but does not include all disclosures required by GAAP. | |
Certain amounts in previously issued financial statements have been reclassified to conform to the current year presentation, which includes the reclassification of the results of operations of certain businesses as discontinued operations for all periods presented. | |
Use of Estimates in the Preparation of the Condensed Consolidated Financial Statements | Use of Estimates in the Preparation of the Condensed Consolidated Financial Statements – The preparation of the condensed consolidated financial statements in conformity with GAAP requires management to make estimates and judgments that affect the amounts reported herein. Management bases its estimates and assumptions on historical experience and on various other factors that are believed to be reasonable under the circumstances. Due to the inherent uncertainty involved in making estimates, actual results reported in future periods may be affected by changes in those estimates. |
Assets Held For Sale | Assets Held for Sale – An asset or business is classified as held for sale when (i) management commits to a plan to sell the asset or business; (ii) the asset or business is available for immediate sale in its present condition; (iii) the asset or business is actively marketed for sale at a reasonable price; (iv) the sale is expected to be completed within one year; and (v) it is unlikely significant changes to the plan will be made or that the plan will be withdrawn. The assets and related liabilities are aggregated and reported separately in the Company’s condensed consolidated balance sheet. |
Organization_Basis_of_Presenta2
Organization, Basis of Presentation and Recent Accounting Pronouncements (Tables) | 3 Months Ended | |||||||||||
Mar. 31, 2015 | ||||||||||||
Error Corrections and Prior Period Adjustments Restatement [Line Items] | ||||||||||||
Schedule of Error Corrections and Prior Period Adjustments | As detailed below, these revisions impacted the following consolidated cash flow items: | |||||||||||
Three Months Ended March 31, 2014 | ||||||||||||
As | ||||||||||||
Previously | As | |||||||||||
(in thousands) | Reported | Revision | Revised | |||||||||
Cash Flows from Operating Activities | ||||||||||||
Decrease in Accounts Payable and Accrued Liabilities | $ | (112,811 | ) | $ | 22,566 | $ | (90,245 | ) | ||||
Net Cash Provided by Operating Activities | 77,055 | 22,566 | 99,621 | |||||||||
Cash Flows from Investing Activities | ||||||||||||
Purchases of Property, Plant and Equipment | $ | (36,562 | ) | $ | (22,566 | ) | $ | (59,128 | ) | |||
Net Cash Provided by (Used in) Investing Activities | 13,903 | (22,566 | ) | (8,663 | ) | |||||||
Discontinued_Operations_Tables
Discontinued Operations (Tables) | 3 Months Ended | |||||||
Mar. 31, 2015 | ||||||||
Discontinued Operation, Additional Disclosures [Abstract] | ||||||||
Carrying Amounts of Assets and Liabilities Held for Sale and Summarized Income (Loss) from Discontinued Operations, Net Of Tax | The summarized (loss) income from discontinued operations, net of tax, is presented below: | |||||||
Three Months Ended | ||||||||
March 31 | ||||||||
(in thousands) | 2015 | 2014 | ||||||
Operating revenues | $ | — | $ | 20,294 | ||||
Operating costs and expenses | — | (13,494 | ) | |||||
Income from discontinued operations | — | 6,800 | ||||||
Provision from income taxes | — | 2,026 | ||||||
Net Income from Discontinued Operations | — | 4,774 | ||||||
Loss on sales of discontinued operations | (732 | ) | (4,737 | ) | ||||
Expense (benefit) from income taxes on sales of discontinued operations | 52 | (1,695 | ) | |||||
(Loss) Income from Discontinued Operations, Net of Tax | $ | (784 | ) | $ | 1,732 | |||
Investments_Tables
Investments (Tables) | 3 Months Ended | |||||||
Mar. 31, 2015 | ||||||||
Investments [Abstract] | ||||||||
Investments in Marketable Equity Securities | Investments in marketable equity securities comprised the following: | |||||||
As of | ||||||||
March 31, | December 31, | |||||||
(in thousands) | 2015 | 2014 | ||||||
Total cost | $ | 106,909 | $ | 106,909 | ||||
Net unrealized gains | 78,006 | 86,884 | ||||||
Total Fair Value | $ | 184,915 | $ | 193,793 | ||||
Acquisitions_Dispositions_Exch1
Acquisitions, Dispositions, Exchanges and Other (Tables) | 3 Months Ended | ||||||||
Mar. 31, 2015 | |||||||||
Acqusitions and Dispositions [Abstract] | |||||||||
Significant Component | The revenue and operating losses related to schools that are being sold as part of the ECA transaction are as follows: | ||||||||
Three Months Ended | |||||||||
31-Mar | |||||||||
(in thousands) | 2015 | 2014 | |||||||
Revenue | $ | 61,087 | $ | 69,058 | |||||
Operating loss | $ | (3,014 | ) | $ | (2,976 | ) | |||
Assets Held for Sale | DISCONTINUED OPERATIONS | ||||||||
In the third quarter of 2014, Kaplan completed the sale of three of its schools in China that were previously included as part of Kaplan International. An additional school in China was sold by Kaplan in January of 2015 which resulted in a pre-tax loss of $0.7 million. | |||||||||
On June 30, 2014, the Company and Berkshire Hathaway Inc. completed a transaction, as described in Note 4, in which Berkshire acquired a wholly-owned subsidiary of the Company that included, among other things, WPLG, a Miami-based television station. | |||||||||
The results of operations of the schools in China and WPLG are included in the Company’s Condensed Consolidated Statements of Operations as Income (Loss) from Discontinued Operations, Net of Tax, for all periods presented. The Company did not reclassify its Statements of Cash Flows or prior Condensed Consolidated Balance Sheets to reflect the various discontinued operations. | |||||||||
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 (loss) income from discontinued operations, net of tax, is presented below: | |||||||||
Three Months Ended | |||||||||
March 31 | |||||||||
(in thousands) | 2015 | 2014 | |||||||
Operating revenues | $ | — | $ | 20,294 | |||||
Operating costs and expenses | — | (13,494 | ) | ||||||
Income from discontinued operations | — | 6,800 | |||||||
Provision from income taxes | — | 2,026 | |||||||
Net Income from Discontinued Operations | — | 4,774 | |||||||
Loss on sales of discontinued operations | (732 | ) | (4,737 | ) | |||||
Expense (benefit) from income taxes on sales of discontinued operations | 52 | (1,695 | ) | ||||||
(Loss) Income from Discontinued Operations, Net of Tax | $ | (784 | ) | $ | 1,732 | ||||
The carrying amounts of the major classes of assets and liabilities held for sale at March 31, 2015 are as follows: | |||||||||
As of | |||||||||
(in thousands) | March 31, 2015 | ||||||||
Restricted cash | $ | 679 | |||||||
Accounts receivable, net | 11,452 | ||||||||
Other current assets | 5,367 | ||||||||
Current Assets Held for Sale | $ | 17,498 | |||||||
Property, plant and equipment, net | $ | 18,789 | |||||||
Goodwill, net | 7,526 | ||||||||
Indefinite-lived intangible assets | 1,092 | ||||||||
Amortized intangible assets, net | 5,787 | ||||||||
Deferred charges and other assets | 751 | ||||||||
Noncurrent Assets Held for Sale | $ | 33,945 | |||||||
Accounts payable and accrued liabilities | $ | 13,175 | |||||||
Deferred revenue | 12,675 | ||||||||
Current Liabilities Held for Sale | $ | 25,850 | |||||||
Other liabilities | $ | 8,085 | |||||||
Noncurrent Liabilities Held for Sale | $ | 8,085 | |||||||
Goodwill_and_Other_Intangible_1
Goodwill and Other Intangible Assets (Tables) | 3 Months Ended | |||||||||||||||||||||||||
Mar. 31, 2015 | ||||||||||||||||||||||||||
Changes in Carrying Amount of Goodwill | The changes in the carrying amount of goodwill, by segment, were as follows: | |||||||||||||||||||||||||
(in thousands) | Education | Cable | Television | Other | Total | |||||||||||||||||||||
Broadcasting | Businesses | |||||||||||||||||||||||||
Balance as of December 31, 2014 | ||||||||||||||||||||||||||
Goodwill | $ | 1,057,226 | $ | 85,488 | $ | 168,345 | $ | 145,992 | $ | 1,457,051 | ||||||||||||||||
Accumulated impairment losses | (102,259 | ) | — | — | (6,082 | ) | (108,341 | ) | ||||||||||||||||||
954,967 | 85,488 | 168,345 | 139,910 | 1,348,710 | ||||||||||||||||||||||
Dispositions | — | — | — | (7,614 | ) | (7,614 | ) | |||||||||||||||||||
Reclassification to assets held for sale | (7,526 | ) | — | — | — | (7,526 | ) | |||||||||||||||||||
Foreign currency exchange rate changes | (19,219 | ) | — | — | — | (19,219 | ) | |||||||||||||||||||
Balance as of March 31, 2015 | ||||||||||||||||||||||||||
Goodwill | 1,030,481 | 85,488 | 168,345 | 138,378 | 1,422,692 | |||||||||||||||||||||
Accumulated impairment losses | (102,259 | ) | — | — | (6,082 | ) | (108,341 | ) | ||||||||||||||||||
$ | 928,222 | $ | 85,488 | $ | 168,345 | $ | 132,296 | $ | 1,314,351 | |||||||||||||||||
Other Intangible Assets | Other intangible assets consist of the following: | |||||||||||||||||||||||||
As of March 31, 2015 | As of December 31, 2014 | |||||||||||||||||||||||||
(in thousands) | Useful Life | Gross | Accumulated | Net Carrying | Gross | Accumulated | Net | |||||||||||||||||||
Range | Carrying | Amortization | Amount | Carrying | Amortization | Carrying | ||||||||||||||||||||
Amount | Amount | Amount | ||||||||||||||||||||||||
Amortized Intangible Assets | ||||||||||||||||||||||||||
Noncompete agreements | 2–5 years | $ | 1,680 | $ | 1,070 | $ | 610 | $ | 2,500 | $ | 1,590 | $ | 910 | |||||||||||||
Student and customer relationships | 2–10 years | 103,480 | 49,503 | 53,977 | 104,685 | 47,539 | 57,146 | |||||||||||||||||||
Databases and technology | 3–5 years | 10,518 | 9,024 | 1,494 | 10,501 | 8,827 | 1,674 | |||||||||||||||||||
Trade names and trademarks | 2–10 years | 54,281 | 20,812 | 33,469 | 55,452 | 19,724 | 35,728 | |||||||||||||||||||
Other | 1–25 years | 6,317 | 5,013 | 1,304 | 8,969 | 7,480 | 1,489 | |||||||||||||||||||
$ | 176,276 | $ | 85,422 | $ | 90,854 | $ | 182,107 | $ | 85,160 | $ | 96,947 | |||||||||||||||
Indefinite-Lived Intangible Assets | ||||||||||||||||||||||||||
Franchise agreements | $ | 496,321 | $ | 496,321 | ||||||||||||||||||||||
Licensure and accreditation | 994 | 6,781 | ||||||||||||||||||||||||
Other | 13,651 | 13,651 | ||||||||||||||||||||||||
$ | 510,966 | $ | 516,753 | |||||||||||||||||||||||
Education [Member] | ||||||||||||||||||||||||||
Changes in Carrying Amount of Goodwill | The changes in carrying amount of goodwill at the Company’s education division were as follows: | |||||||||||||||||||||||||
(in thousands) | Higher | Test | Kaplan | Total | ||||||||||||||||||||||
Education | Preparation | International | ||||||||||||||||||||||||
Balance as of December 31, 2014 | ||||||||||||||||||||||||||
Goodwill | $ | 409,884 | $ | 166,098 | $ | 481,244 | $ | 1,057,226 | ||||||||||||||||||
Accumulated impairment losses | — | (102,259 | ) | — | (102,259 | ) | ||||||||||||||||||||
409,884 | 63,839 | 481,244 | 954,967 | |||||||||||||||||||||||
Reclassification to assets held for sale | (7,526 | ) | — | — | (7,526 | ) | ||||||||||||||||||||
Foreign currency exchange rate changes | (169 | ) | — | (19,050 | ) | (19,219 | ) | |||||||||||||||||||
Balance as of March 31, 2015 | ||||||||||||||||||||||||||
Goodwill | 402,189 | 166,098 | 462,194 | 1,030,481 | ||||||||||||||||||||||
Accumulated impairment losses | — | (102,259 | ) | — | (102,259 | ) | ||||||||||||||||||||
$ | 402,189 | $ | 63,839 | $ | 462,194 | $ | 928,222 | |||||||||||||||||||
Debt_Tables
Debt (Tables) | 3 Months Ended | |||||||
Mar. 31, 2015 | ||||||||
Debt Disclosure [Abstract] | ||||||||
Components of Debt | The Company’s borrowings consist of the following: | |||||||
As of | ||||||||
March 31, | December 31, | |||||||
(in thousands) | 2015 | 2014 | ||||||
7.25% unsecured notes due February 1, 2019 | $ | 398,411 | $ | 398,308 | ||||
AUD Revolving credit borrowing | — | 40,927 | ||||||
Other indebtedness | 6,405 | 6,685 | ||||||
Total Debt | 404,816 | 445,920 | ||||||
Less: current portion | (5,171 | ) | (46,375 | ) | ||||
Total Long-Term Debt | $ | 399,645 | $ | 399,545 | ||||
Fair_Value_Measurements_Tables
Fair Value Measurements (Tables) | 3 Months Ended | |||||||||||
Mar. 31, 2015 | ||||||||||||
Fair Value Disclosures [Abstract] | ||||||||||||
Schedule of Fair Value, Assets and Liabilities Measured on Recurring Basis | The Company’s financial assets and liabilities measured at fair value on a recurring basis were as follows: | |||||||||||
As of March 31, 2015 | ||||||||||||
(in thousands) | Level 1 | Level 2 | Total | |||||||||
Assets | ||||||||||||
Money market investments (1) | $ | — | $ | 227,485 | $ | 227,485 | ||||||
Commercial paper (2) | 221,962 | — | 221,962 | |||||||||
Marketable equity securities (3) | 184,915 | — | 184,915 | |||||||||
Other current investments (4) | 9,917 | 20,148 | 30,065 | |||||||||
Total Financial Assets | $ | 416,794 | $ | 247,633 | $ | 664,427 | ||||||
Liabilities | ||||||||||||
Deferred compensation plan liabilities (5) | $ | — | $ | 69,836 | $ | 69,836 | ||||||
7.25% unsecured notes (6) | — | 451,256 | 451,256 | |||||||||
Total Financial Liabilities | $ | — | $ | 521,092 | $ | 521,092 | ||||||
As of December 31, 2014 | ||||||||||||
(in thousands) | Level 1 | Level 2 | Total | |||||||||
Assets | ||||||||||||
Money market investments (1) | $ | — | $ | 368,131 | $ | 368,131 | ||||||
Commercial paper (2) | 226,197 | — | 226,197 | |||||||||
Marketable equity securities (3) | 193,793 | — | 193,793 | |||||||||
Other current investments (4) | 11,788 | 21,171 | 32,959 | |||||||||
Total Financial Assets | $ | 431,778 | $ | 389,302 | $ | 821,080 | ||||||
Liabilities | ||||||||||||
Deferred compensation plan liabilities (5) | $ | — | $ | 70,661 | $ | 70,661 | ||||||
7.25% unsecured notes (6) | — | 450,344 | 450,344 | |||||||||
AUD revolving credit borrowing (6) | — | 40,927 | 40,927 | |||||||||
Interest rate swap (7) | — | 179 | 179 | |||||||||
Total Financial Liabilities | $ | — | $ | 562,111 | $ | 562,111 | ||||||
____________ | ||||||||||||
-1 | The Company’s money market investments are included in cash, cash equivalents and restricted cash. | |||||||||||
-2 | The Company's commercial paper investments with original maturities of 90 days or less are included in cash and cash equivalents. | |||||||||||
-3 | The Company’s investments in marketable equity securities are classified as available-for-sale. | |||||||||||
-4 | Includes U.S. Government Securities, corporate bonds, mutual funds and time deposits. | |||||||||||
-5 | 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. | |||||||||||
-6 | See Note 6 for carrying amount of these notes and borrowing. The fair value of long-term debt is determined based on a number of observable inputs, including the current market activity of the Company’s publicly traded notes, trends in investor demands and market values of comparable publicly traded debt. | |||||||||||
-7 | 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. |
Earnings_Per_Share_Tables
Earnings Per Share (Tables) | 3 Months Ended | |||||||
Mar. 31, 2015 | ||||||||
Earnings Per Share [Abstract] | ||||||||
Summary of Earnings Per Share from Continuing Operations, Basic and Diluted | The following reflects the Company's income from continuing operations and share data used in the basic and diluted earnings per share computations using the two-class method: | |||||||
Three Months Ended | ||||||||
March 31 | ||||||||
(in thousands, except per share amounts) | 2015 | 2014 | ||||||
Numerator: | ||||||||
Numerator for basic earnings per share: | ||||||||
Income from continuing operations attributable to Graham Holdings Company common stockholders | $ | 21,390 | $ | 130,366 | ||||
Less: Dividends-common stock outstanding and unvested restricted shares | (30,870 | ) | (37,675 | ) | ||||
Undistributed (losses) earnings | (9,480 | ) | 92,691 | |||||
Percent allocated to common stockholders(1) | 100 | % | 98.33 | % | ||||
(9,480 | ) | 91,141 | ||||||
Add: Dividends-common stock outstanding | 30,228 | 37,044 | ||||||
Numerator for basic earnings per share | $ | 20,748 | $ | 128,185 | ||||
Add: Additional undistributed earnings due to dilutive stock options | — | 5 | ||||||
Numerator for diluted earnings per share | $ | 20,748 | $ | 128,190 | ||||
Denominator: | ||||||||
Denominator for basic earnings per share: | ||||||||
Weighted average shares outstanding | 5,704 | 7,275 | ||||||
Add: Effect of dilutive stock options | 33 | 26 | ||||||
Denominator for diluted earnings per share | 5,737 | 7,301 | ||||||
Graham Holdings Company Common Stockholders: | ||||||||
Basic earnings per share from continuing operations | $ | 3.64 | $ | 17.62 | ||||
Diluted earnings per share from continuing operations | $ | 3.62 | $ | 17.56 | ||||
Antidilutive Weighted Average Restricted Stock | Diluted earnings per share excludes the following weighted average potential common shares, as the effect would be antidilutive, as computed under the treasury stock method: | |||||||
Three Months Ended | ||||||||
March 31 | ||||||||
(in thousands) | 2015 | 2014 | ||||||
Weighted average restricted stock | 54 | 51 | ||||||
Pension_and_Postretirement_Pla1
Pension and Postretirement Plans (Tables) | 3 Months Ended | |||||||
Mar. 31, 2015 | ||||||||
Defined Benefit Pension Plan [Member] | ||||||||
Schedule of Net Benefit Costs | Defined Benefit Plans. The total benefit arising from the Company’s defined benefit pension plans, including a portion included in discontinued operations, consists of the following components: | |||||||
Three Months Ended March 31 | ||||||||
(in thousands) | 2015 | 2014 | ||||||
Service cost | $ | 7,252 | $ | 7,537 | ||||
Interest cost | 12,780 | 13,082 | ||||||
Expected return on assets | (31,545 | ) | (30,263 | ) | ||||
Amortization of prior service cost | 81 | 82 | ||||||
Recognized actuarial gain | — | (7,038 | ) | |||||
Net Periodic Benefit | (11,432 | ) | (16,600 | ) | ||||
Early retirement programs expense | — | 4,490 | ||||||
Total Benefit | $ | (11,432 | ) | $ | (12,110 | ) | ||
Schedule of Allocation of Plan Assets | The assets of the Company’s pension plan were allocated as follows: | |||||||
As of | ||||||||
March 31, | December 31, | |||||||
2015 | 2014 | |||||||
U.S. equities | 55 | % | 59 | % | ||||
U.S. fixed income | 12 | % | 13 | % | ||||
International equities | 33 | % | 28 | % | ||||
100 | % | 100 | % | |||||
Supplemental Executive Retirement Plan (SERP) [Member] | ||||||||
Schedule of Net Benefit Costs | The total cost arising from the Company’s Supplemental Executive Retirement Plan (SERP), including a portion included in discontinued operations, consists of the following components: | |||||||
Three Months Ended March 31 | ||||||||
(in thousands) | 2015 | 2014 | ||||||
Service cost | $ | 509 | $ | 373 | ||||
Interest cost | 1,135 | 1,085 | ||||||
Amortization of prior service cost | 114 | 12 | ||||||
Recognized actuarial loss | 878 | 375 | ||||||
Net Periodic Cost | $ | 2,636 | $ | 1,845 | ||||
Other Postretirement Benefit Plan, Defined Benefit [Member] | ||||||||
Schedule of Net Benefit Costs | Other Postretirement Plans. The total cost arising from the Company’s other postretirement plans consists of the following components: | |||||||
Three Months Ended March 31 | ||||||||
(in thousands) | 2015 | 2014 | ||||||
Service cost | $ | 333 | $ | 375 | ||||
Interest cost | 325 | 362 | ||||||
Amortization of prior service credit | (126 | ) | (196 | ) | ||||
Recognized actuarial gain | (249 | ) | (519 | ) | ||||
Net Periodic Cost | $ | 283 | $ | 22 | ||||
Other_NonOperating_Income_Expe1
Other Non-Operating Income (Expense) (Tables) | 3 Months Ended | |||||||
Mar. 31, 2015 | ||||||||
Other Nonoperating Income (Expense) [Abstract] | ||||||||
Summary of Other Non-Operating Income (Expense) | A summary of non-operating (expense) income is as follows: | |||||||
Three Months Ended | ||||||||
March 31 | ||||||||
(in thousands) | 2015 | 2014 | ||||||
Foreign currency (loss) gain, net | $ | (6,827 | ) | $ | 5,037 | |||
Gain on formation of joint venture | 5,972 | — | ||||||
Gain on sale of headquarters building | — | 127,670 | ||||||
Losses on sales or write-down of marketable equity securities | — | (785 | ) | |||||
Other, net | (250 | ) | 1,351 | |||||
Total Other Non-Operating (Expense) Income | $ | (1,105 | ) | $ | 133,273 | |||
Accumulated_Other_Comprehensiv1
Accumulated Other Comprehensive Income (Loss) (Tables) | 3 Months Ended | |||||||||||||||||||||||
Mar. 31, 2015 | ||||||||||||||||||||||||
Accumulated Other Comprehensive Income (Loss), Net of Tax [Abstract] | ||||||||||||||||||||||||
Summary of Other Comprehensive Income | The other comprehensive (loss) income consists of the following components: | |||||||||||||||||||||||
Three Months Ended March 31 | ||||||||||||||||||||||||
2015 | 2014 | |||||||||||||||||||||||
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 | $ | (12,088 | ) | $ | — | $ | (12,088 | ) | $ | 746 | $ | — | $ | 746 | ||||||||||
Adjustment for sale of a business with foreign operations | (41 | ) | — | (41 | ) | — | — | — | ||||||||||||||||
(12,129 | ) | — | (12,129 | ) | 746 | — | 746 | |||||||||||||||||
Unrealized (losses) gains on available-for-sale securities: | ||||||||||||||||||||||||
Unrealized (losses) gains for the period, net | (8,878 | ) | 3,552 | (5,326 | ) | 27,738 | (11,096 | ) | 16,642 | |||||||||||||||
Reclassification adjustment for write-down and realization of loss on sale of available-for-sale securities included in net income | — | — | — | 785 | (314 | ) | 471 | |||||||||||||||||
(8,878 | ) | 3,552 | (5,326 | ) | 28,523 | (11,410 | ) | 17,113 | ||||||||||||||||
Pension and other postretirement plans: | ||||||||||||||||||||||||
Amortization of net prior service cost (credit) included in net income | 69 | (27 | ) | 42 | (102 | ) | 40 | (62 | ) | |||||||||||||||
Amortization of net actuarial loss (gain) included in net income | 629 | (252 | ) | 377 | (7,182 | ) | 2,873 | (4,309 | ) | |||||||||||||||
698 | (279 | ) | 419 | (7,284 | ) | 2,913 | (4,371 | ) | ||||||||||||||||
Cash flow hedge: | ||||||||||||||||||||||||
Gain for the period | 179 | (71 | ) | 108 | 172 | (69 | ) | 103 | ||||||||||||||||
Other Comprehensive (Loss) Income | $ | (20,130 | ) | $ | 3,202 | $ | (16,928 | ) | $ | 22,157 | $ | (8,566 | ) | $ | 13,591 | |||||||||
Summary of Changes in Accumulated Other Comprehensive Income | The accumulated balances related to each component of other comprehensive income are as follows: | |||||||||||||||||||||||
(in thousands, net of taxes) | Cumulative | Unrealized Gain | Unrealized Gain | Cash Flow | Accumulated | |||||||||||||||||||
Foreign | on Available-for- | on Pensions | Hedge | Other | ||||||||||||||||||||
Currency | Sale Securities | and Other | Comprehensive | |||||||||||||||||||||
Translation | Postretirement | Income | ||||||||||||||||||||||
Adjustment | Plans | |||||||||||||||||||||||
Balance as of December 31, 2014 | $ | 8,548 | $ | 52,130 | $ | 392,910 | $ | (108 | ) | $ | 453,480 | |||||||||||||
Other comprehensive (loss) income before reclassifications | (12,088 | ) | (5,326 | ) | — | 29 | (17,385 | ) | ||||||||||||||||
Net amount reclassified from accumulated other comprehensive income | (41 | ) | — | 419 | 79 | 457 | ||||||||||||||||||
Other comprehensive (loss) income, net of tax | (12,129 | ) | (5,326 | ) | 419 | 108 | (16,928 | ) | ||||||||||||||||
Balance as of March 31, 2015 | $ | (3,581 | ) | $ | 46,804 | $ | 393,329 | $ | — | $ | 436,552 | |||||||||||||
Summary of Amounts and Line Items of reclassifications Out of Accumulated Other Comprehensive Income | The amounts and line items of reclassifications out of Accumulated Other Comprehensive Income are as follows: | |||||||||||||||||||||||
Three Months Ended | Affected Line Item in the Condensed Consolidated Statement of Operations | |||||||||||||||||||||||
March 31 | ||||||||||||||||||||||||
(in thousands) | 2015 | 2014 | ||||||||||||||||||||||
Foreign Currency Translation Adjustments: | ||||||||||||||||||||||||
Adjustment for sale of a business with foreign operations | $ | (41 | ) | $ | — | (Loss) Income from Discontinued | ||||||||||||||||||
Operations, Net of Tax | ||||||||||||||||||||||||
Unrealized Gains on Available-for-sale Securities: | ||||||||||||||||||||||||
Realized loss for the period | $ | — | $ | 785 | Other (expense) income, net | |||||||||||||||||||
— | (314 | ) | Provision for Income Taxes | |||||||||||||||||||||
— | 471 | Net of Tax | ||||||||||||||||||||||
Pension and Other Postretirement Plans: | ||||||||||||||||||||||||
Amortization of net prior service cost (credit) | 69 | (102 | ) | -1 | ||||||||||||||||||||
Amortization of net actuarial loss (gain) | 629 | (7,182 | ) | -1 | ||||||||||||||||||||
698 | (7,284 | ) | Before tax | |||||||||||||||||||||
(279 | ) | 2,913 | Provision for Income Taxes | |||||||||||||||||||||
419 | (4,371 | ) | Net of Tax | |||||||||||||||||||||
Cash Flow Hedge | ||||||||||||||||||||||||
132 | 212 | Interest expense | ||||||||||||||||||||||
(53 | ) | (85 | ) | Provision for Income Taxes | ||||||||||||||||||||
79 | 127 | Net of Tax | ||||||||||||||||||||||
Total reclassification for the period | $ | 457 | $ | (3,773 | ) | Net of Tax | ||||||||||||||||||
____________ | ||||||||||||||||||||||||
-1 | These accumulated other comprehensive income components are included in the computation of net periodic pension and postretirement plan cost (see Note 9). |
Business_Segments_Tables
Business Segments (Tables) | 3 Months Ended | |||||||
Mar. 31, 2015 | ||||||||
Segment Reporting Information [Line Items] | ||||||||
Summary of Segment Reporting Information, by Operating Segment | The following table summarizes financial information related to each of the Company’s business segments: | |||||||
Three Months Ended | ||||||||
31-Mar | ||||||||
(in thousands) | 2015 | 2014 | ||||||
Operating Revenues | ||||||||
Education | $ | 500,602 | $ | 522,154 | ||||
Cable | 198,723 | 203,921 | ||||||
Television broadcasting | 83,564 | 85,651 | ||||||
Other businesses | 63,259 | 24,913 | ||||||
Corporate office | — | — | ||||||
Intersegment elimination | — | (98 | ) | |||||
$ | 846,148 | $ | 836,541 | |||||
Income (Loss) From Operations | ||||||||
Education | $ | (22,849 | ) | $ | 1,862 | |||
Cable | 39,076 | 41,162 | ||||||
Television broadcasting | 38,562 | 44,386 | ||||||
Other businesses | (5,162 | ) | (10,747 | ) | ||||
Corporate office | (3,072 | ) | 2,206 | |||||
$ | 46,555 | $ | 78,869 | |||||
Equity in (Losses) Earnings of Affiliates, Net | (404 | ) | 4,052 | |||||
Interest Expense, Net | (7,962 | ) | (8,221 | ) | ||||
Other (Expense) Income, Net | (1,105 | ) | 133,273 | |||||
Income from Continuing Operations Before Income Taxes | $ | 37,084 | $ | 207,973 | ||||
Depreciation of Property, Plant and Equipment | ||||||||
Education | $ | 18,528 | $ | 16,416 | ||||
Cable | 36,348 | 33,787 | ||||||
Television broadcasting | 2,109 | 1,994 | ||||||
Other businesses | 1,302 | 520 | ||||||
Corporate office | 258 | 500 | ||||||
$ | 58,545 | $ | 53,217 | |||||
Amortization of Intangible Assets | ||||||||
Education | $ | 1,507 | $ | 1,924 | ||||
Cable | 31 | 35 | ||||||
Television broadcasting | 63 | — | ||||||
Other businesses | 3,168 | 758 | ||||||
Corporate office | — | — | ||||||
$ | 4,769 | $ | 2,717 | |||||
Net Pension (Credit) Expense | ||||||||
Education | $ | 3,947 | $ | 4,143 | ||||
Cable | 975 | 864 | ||||||
Television broadcasting | 391 | 320 | ||||||
Other businesses | 193 | 164 | ||||||
Corporate office | (16,938 | ) | (17,679 | ) | ||||
$ | (11,432 | ) | $ | (12,188 | ) | |||
Asset information for the Company’s business segments are as follows: | ||||||||
As of | ||||||||
(in thousands) | March 31, | December 31, | ||||||
2015 | 2014 | |||||||
Identifiable Assets | ||||||||
Education | $ | 1,535,949 | $ | 1,781,543 | ||||
Cable television | 1,254,511 | 1,253,764 | ||||||
Television broadcasting | 299,983 | 305,426 | ||||||
Other businesses | 488,748 | 518,807 | ||||||
Corporate office | 509,720 | 524,627 | ||||||
$ | 4,088,911 | $ | 4,384,167 | |||||
Investments in Marketable Equity Securities | 184,915 | 193,793 | ||||||
Investments in Affiliates | 36,120 | 19,811 | ||||||
Prepaid Pension Cost | 1,164,001 | 1,152,488 | ||||||
Assets Held for Sale | 51,443 | 2,060 | ||||||
Total Assets | $ | 5,525,390 | $ | 5,752,319 | ||||
Education [Member] | ||||||||
Segment Reporting Information [Line Items] | ||||||||
Summary of Segment Reporting Information, by Operating Segment | The Company’s education division comprises the following operating segments: | |||||||
Three Months Ended | ||||||||
31-Mar | ||||||||
(in thousands) | 2015 | 2014 | ||||||
Operating Revenues | ||||||||
Higher education | $ | 237,568 | $ | 253,779 | ||||
Test preparation | 69,226 | 67,804 | ||||||
Kaplan international | 192,081 | 198,847 | ||||||
Kaplan corporate and other | 1,859 | 2,014 | ||||||
Intersegment elimination | (132 | ) | (290 | ) | ||||
$ | 500,602 | $ | 522,154 | |||||
Income (Loss) from Operations | ||||||||
Higher education | $ | 593 | $ | 13,144 | ||||
Test preparation | (4,334 | ) | (6,628 | ) | ||||
Kaplan international | 7,717 | 9,858 | ||||||
Kaplan corporate and other | (26,857 | ) | (14,556 | ) | ||||
Intersegment elimination | 32 | 44 | ||||||
$ | (22,849 | ) | $ | 1,862 | ||||
Depreciation of Property, Plant and Equipment | ||||||||
Higher education | $ | 4,828 | $ | 7,740 | ||||
Test preparation | 2,890 | 3,784 | ||||||
Kaplan international | 4,654 | 4,680 | ||||||
Kaplan corporate and other | 6,156 | 212 | ||||||
$ | 18,528 | $ | 16,416 | |||||
Amortization of Intangible Assets | $ | 1,507 | $ | 1,924 | ||||
Pension Expense | ||||||||
Higher education | $ | 2,532 | $ | 2,628 | ||||
Test preparation | 775 | 722 | ||||||
Kaplan international | 106 | 89 | ||||||
Kaplan corporate and other | 534 | 704 | ||||||
$ | 3,947 | $ | 4,143 | |||||
Identifiable assets for the Company’s education division consist of the following: | ||||||||
As of | ||||||||
(in thousands) | March 31, | December 31, | ||||||
2015 | 2014 | |||||||
Identifiable assets | ||||||||
Higher education | $ | 557,851 | $ | 749,421 | ||||
Test preparation | 169,493 | 167,055 | ||||||
Kaplan international | 776,129 | 838,148 | ||||||
Kaplan corporate and other | 32,476 | 26,919 | ||||||
$ | 1,535,949 | $ | 1,781,543 | |||||
Organization_Basis_of_Presenta3
Organization, Basis of Presentation and Recent Accounting Pronouncements (Narrative) (Details) (USD $) | 3 Months Ended | ||
In Thousands, unless otherwise specified | Mar. 31, 2015 | Mar. 31, 2014 | Feb. 12, 2015 |
campus | |||
Percentage of ownership indicating control for consolidation purposes | more than 50% | ||
Net Cash Provided by (Used in) Investing Activities | ($52,831) | ($8,663) | |
Net Cash Provided by (Used in) Operating Activities | -45,871 | 99,621 | |
Television Broadcasting [Member] | |||
Number of television broadcast stations | 5 | ||
Revision Adjustment [Member] | |||
Net Cash Provided by (Used in) Investing Activities | -22,566 | ||
Net Cash Provided by (Used in) Operating Activities | $22,566 | ||
KHE Campuses [Member] | Higher Education [Member] | |||
Number of nationally accredited ground campuses | 38 |
Organization_Basis_of_Presenta4
Organization, Basis of Presentation and Recent Accounting Pronouncements (Details 1) (USD $) | 3 Months Ended | |
In Thousands, unless otherwise specified | Mar. 31, 2015 | Mar. 31, 2014 |
Decrease in Accounts Payable and Accrued Liabilities | ($28,337) | ($90,245) |
Net Cash Provided by Operating Activities | -45,871 | 99,621 |
Purchases of Property, Plant and Equipment | -47,595 | -59,128 |
Net Cash Provided by (Used in) Investing Activities | -52,831 | -8,663 |
Scenario, Previously Reported [Member] | ||
Decrease in Accounts Payable and Accrued Liabilities | -112,811 | |
Net Cash Provided by Operating Activities | 77,055 | |
Purchases of Property, Plant and Equipment | -36,562 | |
Net Cash Provided by (Used in) Investing Activities | 13,903 | |
Revision Adjustment [Member] | ||
Decrease in Accounts Payable and Accrued Liabilities | 22,566 | |
Net Cash Provided by Operating Activities | 22,566 | |
Purchases of Property, Plant and Equipment | -22,566 | |
Net Cash Provided by (Used in) Investing Activities | ($22,566) |
Discontinued_Operations_Narrat
Discontinued Operations (Narrative) (Details) (USD $) | 3 Months Ended | 1 Months Ended | 3 Months Ended | |||
Mar. 31, 2015 | Mar. 31, 2014 | Jan. 31, 2015 | Sep. 30, 2014 | Dec. 31, 2013 | Jun. 30, 2014 | |
school | school | |||||
Income Statement, Balance Sheet and Additional Disclosures by Disposal Groups, Including Discontinued Operations [Line Items] | ||||||
Pre-tax gain (loss) on sale and/or disposition | $732,000 | $4,737,000 | ||||
Expenses in discontinued operations | 0 | 13,494,000 | ||||
Early retirement program expense | 0 | 4,490,000 | ||||
Kaplan China [Member] | Kaplan International [Member] | ||||||
Income Statement, Balance Sheet and Additional Disclosures by Disposal Groups, Including Discontinued Operations [Line Items] | ||||||
Number of schools sold | 1 | 3 | ||||
Pre-tax gain (loss) on sale and/or disposition | 700,000 | |||||
Sale of Publishing Subsidiaries [Member] | Revision Adjustment [Member] | ||||||
Income Statement, Balance Sheet and Additional Disclosures by Disposal Groups, Including Discontinued Operations [Line Items] | ||||||
After-tax gain (loss) on sale and/or disposition | -3,000,000 | |||||
Sale of Publishing Subsidiaries [Member] | Scenario, Previously Reported [Member] | ||||||
Income Statement, Balance Sheet and Additional Disclosures by Disposal Groups, Including Discontinued Operations [Line Items] | ||||||
After-tax gain (loss) on sale and/or disposition | $100,000,000 | |||||
Berkshire Exchange Transaction [Member] | Common Class A [Member] | Berkshire Hathaway Inc [Member] | ||||||
Income Statement, Balance Sheet and Additional Disclosures by Disposal Groups, Including Discontinued Operations [Line Items] | ||||||
Number of Berkshire Shares Exchanged | 2,107 | |||||
Berkshire Exchange Transaction [Member] | Common Class B [Member] | Berkshire Hathaway Inc [Member] | ||||||
Income Statement, Balance Sheet and Additional Disclosures by Disposal Groups, Including Discontinued Operations [Line Items] | ||||||
Number of Berkshire Shares Exchanged | 1,278 |
Discontinued_Operations_Summar
Discontinued Operations (Summarized (Loss) Income from Discontinued Operations, Net Of Tax) (Details 1) (USD $) | 3 Months Ended | |
In Thousands, unless otherwise specified | Mar. 31, 2015 | Mar. 31, 2014 |
Discontinued Operation, Additional Disclosures [Abstract] | ||
Operating revenues | $0 | $20,294 |
Operating costs and expenses | 0 | -13,494 |
Income from discontinued operations | 0 | 6,800 |
Provision from income taxes | 0 | 2,026 |
Net Income from Discontinued Operations | 0 | 4,774 |
Loss on sales of discontinued operations | -732 | -4,737 |
Expense (benefit) from income taxes on sales of discontinued operations | 52 | -1,695 |
(Loss) Income from Discontinued Operations, Net of Tax | ($784) | $1,732 |
Investments_Narrative_Details
Investments (Narrative) (Details) (USD $) | 1 Months Ended | 3 Months Ended | ||||
Apr. 30, 2014 | Mar. 31, 2015 | Mar. 31, 2014 | Dec. 31, 2014 | Jun. 30, 2014 | Jul. 03, 2014 | |
Schedule of Investments [Line Items] | ||||||
Gain on exchange of Berkshire Hathaway shares | $0 | ($785,000) | ||||
Proceeds from sales of marketable equity securities | 0 | 4,200,000 | ||||
(Loss) gain on sales of marketable equity securities | -300,000 | |||||
New investments in marketable equity securities | 0 | 0 | ||||
Proceeds from sales of marketable securities in Q1 settled in April | 400,000 | |||||
Pre-tax gain on equity method investments | -404,000 | 4,052,000 | ||||
Company's investments in marketable equity securities | 184,915,000 | 193,793,000 | ||||
Unrealized loss on investment | 78,006,000 | 86,884,000 | ||||
Commercial Paper And Money Market Investments | 449,400,000 | 594,300,000 | ||||
Corinthian Colleges, Inc. [Member] | ||||||
Schedule of Investments [Line Items] | ||||||
Impairment write-down on a marketable equity security | $500,000 | |||||
Berkshire Exchange Transaction [Member] | Berkshire Hathaway Inc [Member] | Common Class A [Member] | ||||||
Schedule of Investments [Line Items] | ||||||
Number of Berkshire Shares Exchanged | 2,107 | |||||
Berkshire Exchange Transaction [Member] | Berkshire Hathaway Inc [Member] | Common Class B [Member] | ||||||
Schedule of Investments [Line Items] | ||||||
Number of Berkshire Shares Exchanged | 1,278 | |||||
Residential Home Health Illinois [Member] | ||||||
Schedule of Investments [Line Items] | ||||||
Equity Method Investment, Ownership Percentage | 40.00% | |||||
Residential Hospice Illinois [Member] | ||||||
Schedule of Investments [Line Items] | ||||||
Equity Method Investment, Ownership Percentage | 42.50% | 42.50% | ||||
Celtic Healthcare Allegheny Health Network Joint Venture [Member] | ||||||
Schedule of Investments [Line Items] | ||||||
Equity Method Investment, Ownership Percentage | 40.00% |
Investments_Investments_in_Mar
Investments (Investments in Marketable Equity Securities) (Details 1) (USD $) | Mar. 31, 2015 | Dec. 31, 2014 |
In Thousands, unless otherwise specified | ||
Investments [Abstract] | ||
Total cost | $106,909 | $106,909 |
Net unrealized gains | 78,006 | 86,884 |
Total Fair Value | $184,915 | $193,793 |
Acqusitions_Dispositions_Excha
Acqusitions, Dispositions, Exchanges and Other (Acquisitions) (Narrative) (Details) | 3 Months Ended | ||
Mar. 31, 2015 | Mar. 31, 2014 | Jul. 03, 2014 | |
business | business | ||
Business Acquisition [Line Items] | |||
Number of businesses acquired | 0 | 1 | |
Residential Healthcare Group Inc [Member] | |||
Business Acquisition [Line Items] | |||
Percentage of interest acquired | 80.00% | ||
Residential Hospice Illinois [Member] | |||
Business Acquisition [Line Items] | |||
Equity Method Investment, Ownership Percentage | 42.50% | 42.50% | |
Residential Home Health Illinois [Member] | |||
Business Acquisition [Line Items] | |||
Equity Method Investment, Ownership Percentage | 40.00% | ||
Residential Healthcare Group Inc [Member] | Residential Home Health Illinois [Member] | |||
Business Acquisition [Line Items] | |||
Equity Method Investment, Ownership Percentage | 40.00% |
Acquisitions_Dispositions_Exch2
Acquisitions, Dispositions, Exchanges and Other (Dispositions) (Narrative) (Details) (USD $) | 3 Months Ended | 1 Months Ended | 3 Months Ended | ||
In Thousands, unless otherwise specified | Mar. 31, 2015 | Mar. 31, 2014 | Jan. 31, 2015 | Sep. 30, 2014 | Feb. 12, 2015 |
school | school | campus | |||
Income Statement, Balance Sheet and Additional Disclosures by Disposal Groups, Including Discontinued Operations [Line Items] | |||||
Estimated loss on sale of KHE Campuses | $0 | $0 | |||
KHE Campuses [Member] | Higher Education [Member] | |||||
Income Statement, Balance Sheet and Additional Disclosures by Disposal Groups, Including Discontinued Operations [Line Items] | |||||
Number of nationally accredited ground campuses | 38 | ||||
Kaplan China [Member] | Kaplan International [Member] | |||||
Income Statement, Balance Sheet and Additional Disclosures by Disposal Groups, Including Discontinued Operations [Line Items] | |||||
Number of schools sold | 1 | 3 |
Acquisitions_Dispositions_Exch3
Acquisitions, Dispositions, Exchanges and Other (Exchanges and Other) (Narrative) (Details) (USD $) | 12 Months Ended | |||
In Millions, except Share data, unless otherwise specified | Dec. 31, 2014 | Jun. 30, 2014 | Mar. 31, 2015 | Jan. 31, 2015 |
Berkshire Exchange Transaction [Member] | ||||
Exchange And Other [Line Items] | ||||
Amount of Cash Exchanged to Berkshire | $327.70 | |||
Berkshire Exchange Transaction [Member] | Common Class B [Member] | ||||
Exchange And Other [Line Items] | ||||
Number of shares received in Berkshire Hathaway agreement | 1,620,190 | |||
Berkshire Exchange Transaction [Member] | Berkshire Hathaway Inc [Member] | Common Class A [Member] | ||||
Exchange And Other [Line Items] | ||||
Number of Berkshire Shares Exchanged | 2,107 | |||
Berkshire Exchange Transaction [Member] | Berkshire Hathaway Inc [Member] | Common Class B [Member] | ||||
Exchange And Other [Line Items] | ||||
Number of Berkshire Shares Exchanged | 1,278 | |||
Celtic Healthcare Allegheny Health Network Joint Venture [Member] | ||||
Exchange And Other [Line Items] | ||||
Equity Method Investment, Ownership Percentage | 40.00% | |||
Celtic Healthcare Allegheny Health Network Joint Venture [Member] | Celtic Healthcare Inc [Member] | ||||
Exchange And Other [Line Items] | ||||
Equity Method Investment, Ownership Percentage | 40.00% | |||
Percentage of revenue | 29.00% |
Acquisitions_Dispositions_Exch4
Acquisitions, Dispositions, Exchanges and Other (Significant Component) (Details 1) (USD $) | 3 Months Ended | |
In Thousands, unless otherwise specified | Mar. 31, 2015 | Mar. 31, 2014 |
Income Statement, Balance Sheet and Additional Disclosures by Disposal Groups, Including Discontinued Operations [Line Items] | ||
Disposal Group, Not Discontinued Operation, Revenue | $61,087 | $69,058 |
Disposal Group, Not Discontinued Operation, Operating Loss | ($3,014) | ($2,976) |
Acquisitions_Dispositions_Exch5
Acquisitions, Dispositions, Exchanges and Other (Assets Held for Sale) (Details 2) (USD $) | Mar. 31, 2015 | Dec. 31, 2014 |
In Thousands, unless otherwise specified | ||
Income Statement, Balance Sheet and Additional Disclosures by Disposal Groups, Including Discontinued Operations [Line Items] | ||
Restricted cash | $679 | |
Accounts receivable, net | 11,452 | |
Other current assets | 5,367 | |
Current Assets Held for Sale | 17,498 | 1,240 |
Property, plant and equipment, net | 18,789 | |
Goodwill, net | 7,526 | |
Indefinite-lived intangible assets | 1,092 | |
Amortized intangible assets, net | 5,787 | |
Deferred charges and other assets | 751 | |
Noncurrent Assets Held for Sale | 33,945 | 820 |
Accounts payable and accrued liabilities | 13,175 | |
Deferred revenue | 12,675 | |
Current Liabilities Held for Sale | 25,850 | 1,034 |
Other liabilities | 8,085 | |
Noncurrent Liabilities Held for Sale | $8,085 | $0 |
Goodwill_and_Other_Intangible_2
Goodwill and Other Intangible Assets (Narrative) (Details) (USD $) | 3 Months Ended | |
Mar. 31, 2015 | Mar. 31, 2014 | |
Amortization of Intangible Assets | ||
Amortization of intangible assets | $4,769,000 | $2,717,000 |
Estimated amortization of intangible assets, remainder of 2015 | 13,000,000 | |
Estimated amortization of intangible assets, 2016 | 17,000,000 | |
Estimated amortization of intangible assets, 2017 | 14,000,000 | |
Estimated amortization of intangible assets, 2018 | 13,000,000 | |
Estimated amortization of intangible assets, 2019 | 12,000,000 | |
Estimated amortization of intangible assets, after 2019 | $22,000,000 |
Goodwill_and_Other_Intangible_3
Goodwill and Other Intangible Assets (Changes in Carrying Amount of Goodwill) (Details 1) (USD $) | 3 Months Ended |
In Thousands, unless otherwise specified | Mar. 31, 2015 |
Goodwill [Line Items] | |
Goodwill, beginning balance | $1,457,051 |
Accumulated impairment losses, beginning balance | -108,341 |
Goodwill, net, beginning balance | 1,348,710 |
Dispositions | -7,614 |
Reclassification to assets held for sale | -7,526 |
Foreign currency exchange rate changes | -19,219 |
Goodwill, ending balance | 1,422,692 |
Accumulated impairment losses, ending balance | -108,341 |
Goodwill, net, ending balance | 1,314,351 |
Education [Member] | |
Goodwill [Line Items] | |
Goodwill, beginning balance | 1,057,226 |
Accumulated impairment losses, beginning balance | -102,259 |
Goodwill, net, beginning balance | 954,967 |
Dispositions | 0 |
Reclassification to assets held for sale | -7,526 |
Foreign currency exchange rate changes | -19,219 |
Goodwill, ending balance | 1,030,481 |
Accumulated impairment losses, ending balance | -102,259 |
Goodwill, net, ending balance | 928,222 |
Higher Education [Member] | |
Goodwill [Line Items] | |
Goodwill, beginning balance | 409,884 |
Accumulated impairment losses, beginning balance | 0 |
Goodwill, net, beginning balance | 409,884 |
Reclassification to assets held for sale | -7,526 |
Foreign currency exchange rate changes | -169 |
Goodwill, ending balance | 402,189 |
Accumulated impairment losses, ending balance | 0 |
Goodwill, net, ending balance | 402,189 |
Test Preparation [Member] | |
Goodwill [Line Items] | |
Goodwill, beginning balance | 166,098 |
Accumulated impairment losses, beginning balance | -102,259 |
Goodwill, net, beginning balance | 63,839 |
Reclassification to assets held for sale | 0 |
Foreign currency exchange rate changes | 0 |
Goodwill, ending balance | 166,098 |
Accumulated impairment losses, ending balance | -102,259 |
Goodwill, net, ending balance | 63,839 |
Kaplan International [Member] | |
Goodwill [Line Items] | |
Goodwill, beginning balance | 481,244 |
Accumulated impairment losses, beginning balance | 0 |
Goodwill, net, beginning balance | 481,244 |
Reclassification to assets held for sale | 0 |
Foreign currency exchange rate changes | -19,050 |
Goodwill, ending balance | 462,194 |
Accumulated impairment losses, ending balance | 0 |
Goodwill, net, ending balance | 462,194 |
Cable [Member] | |
Goodwill [Line Items] | |
Goodwill, beginning balance | 85,488 |
Accumulated impairment losses, beginning balance | 0 |
Goodwill, net, beginning balance | 85,488 |
Dispositions | 0 |
Reclassification to assets held for sale | 0 |
Foreign currency exchange rate changes | 0 |
Goodwill, ending balance | 85,488 |
Accumulated impairment losses, ending balance | 0 |
Goodwill, net, ending balance | 85,488 |
Television Broadcasting [Member] | |
Goodwill [Line Items] | |
Goodwill, beginning balance | 168,345 |
Accumulated impairment losses, beginning balance | 0 |
Goodwill, net, beginning balance | 168,345 |
Dispositions | 0 |
Reclassification to assets held for sale | 0 |
Foreign currency exchange rate changes | 0 |
Goodwill, ending balance | 168,345 |
Accumulated impairment losses, ending balance | 0 |
Goodwill, net, ending balance | 168,345 |
Other Businesses [Member] | |
Goodwill [Line Items] | |
Goodwill, beginning balance | 145,992 |
Accumulated impairment losses, beginning balance | -6,082 |
Goodwill, net, beginning balance | 139,910 |
Dispositions | -7,614 |
Reclassification to assets held for sale | 0 |
Foreign currency exchange rate changes | 0 |
Goodwill, ending balance | 138,378 |
Accumulated impairment losses, ending balance | -6,082 |
Goodwill, net, ending balance | $132,296 |
Goodwill_and_Other_Intangible_4
Goodwill and Other Intangible Assets (Other Intangible Assets) (Details 2) (USD $) | 3 Months Ended | 12 Months Ended |
In Thousands, unless otherwise specified | Mar. 31, 2015 | Dec. 31, 2014 |
Amortized Intangible Assets [Line Items] | ||
Gross Carrying Amount | 176,276 | 182,107 |
Accumulated Amortization | 85,422 | 85,160 |
Net Carrying Amount | 90,854 | 96,947 |
Indefinite-Lived Intangible Assets [Line Items] | ||
Indefinite-Lived Intangible Assets, Net | 510,966 | 516,753 |
Franchise Agreements [Member] | ||
Indefinite-Lived Intangible Assets [Line Items] | ||
Indefinite-Lived Intangible Assets, Net | 496,321 | 496,321 |
Licensure and Accreditation [Member] | ||
Indefinite-Lived Intangible Assets [Line Items] | ||
Indefinite-Lived Intangible Assets, Net | 994 | 6,781 |
Other [Member] | ||
Indefinite-Lived Intangible Assets [Line Items] | ||
Indefinite-Lived Intangible Assets, Net | 13,651 | 13,651 |
Non-compete Agreements [Member] | ||
Amortized Intangible Assets [Line Items] | ||
Gross Carrying Amount | 1,680 | 2,500 |
Accumulated Amortization | 1,070 | 1,590 |
Net Carrying Amount | 610 | 910 |
Non-compete Agreements [Member] | Minimum [Member] | ||
Amortized Intangible Assets [Line Items] | ||
Useful Life | 2 years | 2 years |
Non-compete Agreements [Member] | Maximum [Member] | ||
Amortized Intangible Assets [Line Items] | ||
Useful Life | 5 years | 5 years |
Student and Customer Relationships [Member] | ||
Amortized Intangible Assets [Line Items] | ||
Gross Carrying Amount | 103,480 | 104,685 |
Accumulated Amortization | 49,503 | 47,539 |
Net Carrying Amount | 53,977 | 57,146 |
Student and Customer Relationships [Member] | Minimum [Member] | ||
Amortized Intangible Assets [Line Items] | ||
Useful Life | 2 years | 2 years |
Student and Customer Relationships [Member] | Maximum [Member] | ||
Amortized Intangible Assets [Line Items] | ||
Useful Life | 10 years | 10 years |
Databases and Technology [Member] | ||
Amortized Intangible Assets [Line Items] | ||
Gross Carrying Amount | 10,518 | 10,501 |
Accumulated Amortization | 9,024 | 8,827 |
Net Carrying Amount | 1,494 | 1,674 |
Databases and Technology [Member] | Minimum [Member] | ||
Amortized Intangible Assets [Line Items] | ||
Useful Life | 3 years | 3 years |
Databases and Technology [Member] | Maximum [Member] | ||
Amortized Intangible Assets [Line Items] | ||
Useful Life | 5 years | 5 years |
Trade Names and Trademarks [Member] | ||
Amortized Intangible Assets [Line Items] | ||
Gross Carrying Amount | 54,281 | 55,452 |
Accumulated Amortization | 20,812 | 19,724 |
Net Carrying Amount | 33,469 | 35,728 |
Trade Names and Trademarks [Member] | Minimum [Member] | ||
Amortized Intangible Assets [Line Items] | ||
Useful Life | 2 years | 2 years |
Trade Names and Trademarks [Member] | Maximum [Member] | ||
Amortized Intangible Assets [Line Items] | ||
Useful Life | 10 years | 10 years |
Other [Member] | ||
Amortized Intangible Assets [Line Items] | ||
Gross Carrying Amount | 6,317 | 8,969 |
Accumulated Amortization | 5,013 | 7,480 |
Net Carrying Amount | 1,304 | 1,489 |
Other [Member] | Minimum [Member] | ||
Amortized Intangible Assets [Line Items] | ||
Useful Life | 1 year | 1 year |
Other [Member] | Maximum [Member] | ||
Amortized Intangible Assets [Line Items] | ||
Useful Life | 25 years | 25 years |
Debt_Narrative_Details
Debt (Narrative) (Details) | 3 Months Ended | 0 Months Ended | 3 Months Ended | 12 Months Ended | ||||||||
Mar. 31, 2015 | Mar. 31, 2014 | Dec. 31, 2014 | Mar. 31, 2015 | Dec. 31, 2014 | Jan. 31, 2009 | Mar. 09, 2015 | Mar. 31, 2015 | Dec. 31, 2014 | Mar. 09, 2015 | Mar. 31, 2015 | Dec. 31, 2014 | |
USD ($) | USD ($) | USD ($) | 7.25% Unsecured Notes due February 1, 2019 [Member] | 7.25% Unsecured Notes due February 1, 2019 [Member] | 7.25% Unsecured Notes due February 1, 2019 [Member] | AUD $50 million portion of Revolver [Member] | AUD $50 million portion of Revolver [Member] | AUD $50 million portion of Revolver [Member] | Interest Rate Swap [Member] | Other Indebtedness [Member] | Other Indebtedness [Member] | |
USD ($) | USD ($) | AUD | USD ($) | USD ($) | AUD | |||||||
Debt Instrument [Line Items] | ||||||||||||
Borrowings outstanding | $0 | $40,927,000 | ||||||||||
Minimum interest rate | 0.00% | 0.00% | ||||||||||
Maximum interest rate | 6.00% | 6.00% | ||||||||||
Debt Instrument, Interest Rate, Stated Percentage | 7.25% | 7.25% | ||||||||||
Debt Instrument, Maturity year, start | 1-Apr-15 | 1-Jan-15 | ||||||||||
Debt Instrument, Maturity year, end | 31-Dec-17 | 31-Dec-17 | ||||||||||
Repayments of Line of Credit | 50,000,000 | |||||||||||
Notional amount of derivative that matured | 50,000,000 | |||||||||||
Average borrowings outstanding | 435,800,000 | 451,200,000 | ||||||||||
Weighted average interest rate of borrowings | 7.10% | 7.00% | ||||||||||
Net interest expense incurred | 8,000,000 | 8,200,000 | ||||||||||
Fair value of debt instrument | 451,300,000 | 450,300,000 | ||||||||||
Carrying value of debt instrument | $398,411,000 | $398,308,000 | $398,400,000 | $398,300,000 |
Debt_Details_1
Debt (Details 1) (USD $) | Mar. 31, 2015 | Dec. 31, 2014 |
In Thousands, unless otherwise specified | ||
Debt Instrument [Line Items] | ||
7.25% unsecured notes due February 1, 2019 | $398,411 | $398,308 |
Other indebtedness | 6,405 | 6,685 |
Total Debt | 404,816 | 445,920 |
Less: current portion | -5,171 | -46,375 |
Total Long-Term Debt | 399,645 | 399,545 |
Debt Instrument, Interest Rate, Stated Percentage | 7.25% | |
AUD [Member] | ||
Debt Instrument [Line Items] | ||
Revolving credit borrowing | $0 | $40,927 |
Fair_Value_Measurements_Detail
Fair Value Measurements (Details 1) (USD $) | Mar. 31, 2015 | Dec. 31, 2014 | ||
In Thousands, unless otherwise specified | ||||
Assets | ||||
Marketable equity securities | $184,915 | $193,793 | ||
7.25% Unsecured Notes due February 1, 2019 [Member] | ||||
Liabilities: | ||||
7.25% unsecured notes | 451,300 | 450,300 | ||
Fair Value, Measurements, Recurring [Member] | ||||
Assets | ||||
Money market investments | 227,485 | [1] | 368,131 | [1] |
Commercial paper | 221,962 | [2] | 226,197 | [2] |
Marketable equity securities | 184,915 | [3] | 193,793 | [3] |
Other current investments | 30,065 | [4] | 32,959 | [4] |
Total Financial Assets | 664,427 | 821,080 | ||
Liabilities: | ||||
Deferred compensation plan liabilities | 69,836 | [5] | 70,661 | [5] |
Interest rate swap | 179 | [6] | ||
Total Financial Liabilities | 521,092 | 562,111 | ||
Fair Value, Measurements, Recurring [Member] | 7.25% Unsecured Notes due February 1, 2019 [Member] | ||||
Liabilities: | ||||
7.25% unsecured notes | 451,256 | [7] | 450,344 | [7] |
Fair Value, Measurements, Recurring [Member] | AUD $50 million portion of Revolver [Member] | ||||
Liabilities: | ||||
AUD Revolving credit borrowing | 40,927 | [7] | ||
Fair Value, Measurements, Recurring [Member] | Level 1 [Member] | ||||
Assets | ||||
Money market investments | 0 | [1] | 0 | [1] |
Commercial paper | 221,962 | [2] | 226,197 | [2] |
Marketable equity securities | 184,915 | [3] | 193,793 | [3] |
Other current investments | 9,917 | [4] | 11,788 | [4] |
Total Financial Assets | 416,794 | 431,778 | ||
Liabilities: | ||||
Deferred compensation plan liabilities | 0 | [5] | 0 | [5] |
Interest rate swap | 0 | [6] | ||
Total Financial Liabilities | 0 | 0 | ||
Fair Value, Measurements, Recurring [Member] | Level 1 [Member] | 7.25% Unsecured Notes due February 1, 2019 [Member] | ||||
Liabilities: | ||||
7.25% unsecured notes | 0 | [7] | 0 | [7] |
Fair Value, Measurements, Recurring [Member] | Level 1 [Member] | AUD $50 million portion of Revolver [Member] | ||||
Liabilities: | ||||
AUD Revolving credit borrowing | 0 | [7] | ||
Fair Value, Measurements, Recurring [Member] | Level 2 [Member] | ||||
Assets | ||||
Money market investments | 227,485 | [1] | 368,131 | [1] |
Commercial paper | 0 | [2] | 0 | [2] |
Marketable equity securities | 0 | [3] | 0 | [3] |
Other current investments | 20,148 | [4] | 21,171 | [4] |
Total Financial Assets | 247,633 | 389,302 | ||
Liabilities: | ||||
Deferred compensation plan liabilities | 69,836 | [5] | 70,661 | [5] |
Interest rate swap | 179 | [6] | ||
Total Financial Liabilities | 521,092 | 562,111 | ||
Fair Value, Measurements, Recurring [Member] | Level 2 [Member] | 7.25% Unsecured Notes due February 1, 2019 [Member] | ||||
Liabilities: | ||||
7.25% unsecured notes | 451,256 | [7] | 450,344 | [7] |
Fair Value, Measurements, Recurring [Member] | Level 2 [Member] | AUD $50 million portion of Revolver [Member] | ||||
Liabilities: | ||||
AUD Revolving credit borrowing | $40,927 | [7] | ||
[1] | The Company’s money market investments are included in cash, cash equivalents and restricted cash. | |||
[2] | The Company's commercial paper investments with original maturities of 90 days or less are included in cash and cash equivalents. | |||
[3] | The Company’s investments in marketable equity securities are classified as available-for-sale. | |||
[4] | Includes U.S. Government Securities, corporate bonds, mutual funds and time deposits. | |||
[5] | 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. | |||
[6] | 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. | |||
[7] | See Note 6 for carrying amount of these notes and borrowing. The fair value of long-term debt is determined based on a number of observable inputs, including the current market activity of the Company’s publicly traded notes, trends in investor demands and market values of comparable publicly traded debt. |
Earnings_Per_Share_Narrative_D
Earnings Per Share (Narrative) (Details) (USD $) | 3 Months Ended | ||
Mar. 31, 2015 | Mar. 31, 2014 | Jun. 30, 2014 | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Dividends declared per common share | $5.30 | $5.10 | |
Stock Option Plan [Member] | |||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Antidilutive securities, shares | 50,000 | 5,000 | |
Restricted Stock Awards [Member] | |||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Antidilutive securities, shares | 5,850 | 5,550 | |
Berkshire Exchange Transaction [Member] | Common Class B [Member] | |||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Number of shares received in Berkshire Hathaway agreement | 1,620,190 |
Earnings_Per_Share_Details_1
Earnings Per Share (Details 1) (USD $) | 3 Months Ended | |
In Thousands, except Per Share data, unless otherwise specified | Mar. 31, 2015 | Mar. 31, 2014 |
Schedule of Earnings Per Share, Basic and Diluted, Including Two Class Method [Line Items] | ||
Income from continuing operations attributable to Graham Holdings Company common stockholders | $21,390 | $130,366 |
Less: Dividends-common stock outstanding and unvested restricted shares | -30,870 | -37,675 |
Undistributed (losses) earnings | -9,480 | 92,691 |
Percent allocated to common stockholders(1) | 100.00% | 98.33% |
Undistributed Earnings Allocated To Common Stockholders | -9,480 | 91,141 |
Add: Dividends-common stock outstanding | 30,228 | 37,044 |
Numerator for basic earnings per share | 20,748 | 128,185 |
Add: Additional undistributed earnings due to dilutive stock options | 0 | 5 |
Numerator for diluted earnings per share | $20,748 | $128,190 |
Weighted average shares outstanding | 5,704 | 7,275 |
Denominator for diluted earnings per share | 5,737 | 7,301 |
Graham Holdings Company Common Stockholders: | ||
Basic income per common share from continuing operations in dollars per share | $3.64 | $17.62 |
Diluted income per common share from continuing operations in dollars per share | $3.62 | $17.56 |
Stock Option Plan [Member] | ||
Schedule of Earnings Per Share, Basic and Diluted, Including Two Class Method [Line Items] | ||
Add: Effect of dilutive stock options | 33 | 26 |
Earnings_Per_Share_Earnings_Pe
Earnings Per Share Earnings Per Share (Details 2) | 3 Months Ended | |
In Thousands, unless otherwise specified | Mar. 31, 2015 | Mar. 31, 2014 |
Antidilutive Weighted Average Restricted Stock [Line Items] | ||
Weighted average restricted stock | 54 | 51 |
Pension_and_Postretirement_Pla2
Pension and Postretirement Plans (Narrative) (Details) (USD $) | 3 Months Ended | ||
Mar. 31, 2015 | Mar. 31, 2014 | Dec. 31, 2014 | |
companies | |||
Retirement Benefits Disclosure [Line Items] | |||
Net Periodic Cost (Benefit) | ($11,432,000) | ($16,600,000) | |
Total Cost (Benefit) | -11,432,000 | -12,188,000 | |
Early retirement program expense | 0 | 4,490,000 | |
Defined Benefit Pension Plan [Member] | |||
Retirement Benefits Disclosure [Line Items] | |||
Net Periodic Cost (Benefit) | -11,432,000 | -16,600,000 | |
Total Cost (Benefit) | -11,432,000 | -12,110,000 | |
Early retirement program expense | 0 | 4,490,000 | |
Number of investment companies actively managing plan assets | 2 | ||
Amount of plan assets managed internally by company | 0 | ||
Percentage of total plan assets | 100.00% | 100.00% | |
Defined Benefit Pension Plan [Member] | Discontinued Operations [Member] | |||
Retirement Benefits Disclosure [Line Items] | |||
Net Periodic Cost (Benefit) | 100,000 | ||
Defined Benefit Pension Plan [Member] | Corporate Office [Member] | Separation Incentive Program [Member] | |||
Retirement Benefits Disclosure [Line Items] | |||
Early retirement program expense | 4,500,000 | ||
Supplemental Executive Retirement Plan (SERP) [Member] | |||
Retirement Benefits Disclosure [Line Items] | |||
Net Periodic Cost (Benefit) | 2,636,000 | 1,845,000 | |
Supplemental Executive Retirement Plan (SERP) [Member] | Discontinued Operations [Member] | |||
Retirement Benefits Disclosure [Line Items] | |||
Net Periodic Cost (Benefit) | 100,000 | ||
Other Postretirement Plans [Member] | |||
Retirement Benefits Disclosure [Line Items] | |||
Net Periodic Cost (Benefit) | 283,000 | 22,000 | |
Berkshire Hathaway Common Stock [Member] | Defined Benefit Pension Plan [Member] | |||
Retirement Benefits Disclosure [Line Items] | |||
Defined benefit plan, target allocation maximum percentage of assets, singular equity security, without prior approval by plan administrator | 20.00% | ||
Single Equity Concentration [Member] | Defined Benefit Pension Plan [Member] | |||
Retirement Benefits Disclosure [Line Items] | |||
Defined benefit plan, target allocation maximum percentage of assets, singular equity security, without prior approval by plan administrator | 10.00% | ||
Value of investments | 646,500,000 | 730,600,000 | |
Percentage of total plan assets | 25.00% | 30.00% | |
Number of investments the company's pension plan held which individually exceed 10% of total plan assets | 1 | 2 | |
Foreign Investments [Member] | Defined Benefit Pension Plan [Member] | |||
Retirement Benefits Disclosure [Line Items] | |||
Defined benefit plan, target allocation maximum percentage of assets, equity securities | 24.00% | ||
Fixed income securities [Member] | Defined Benefit Pension Plan [Member] | |||
Retirement Benefits Disclosure [Line Items] | |||
Defined benefit plan, target allocation percentage of assets, fixed-income securities, range minimum | 10.00% | ||
Concentration In Single Entity, Type Of Industry, Foreign Country Or Individual Fund [Member] | Defined Benefit Plan Assets Total [Member] | Defined Benefit Pension Plan [Member] | |||
Retirement Benefits Disclosure [Line Items] | |||
Minimum percentage of plan assets considered as significant concentrations in pension plans | 10.00% | ||
Geographic Concentration [Member] | Foreign Investments [Member] | Defined Benefit Pension Plan [Member] | |||
Retirement Benefits Disclosure [Line Items] | |||
Value of investments | $648,700,000 | 468,000,000 | |
Percentage of total plan assets | 25.00% | 19.00% | |
Number of foreign countries for which the companys pension plan holds investments that exceed 10% of total plan assets | 1 | 1 |
Pension_and_Postretirement_Pla3
Pension and Postretirement Plans (Total Benefit/Cost) (Details 5) (USD $) | 3 Months Ended | |
In Thousands, unless otherwise specified | Mar. 31, 2015 | Mar. 31, 2014 |
Defined Benefit Plan Disclosure [Line Items] | ||
Net Periodic Cost (Benefit) | ($11,432) | ($16,600) |
Early retirement program expense | 0 | 4,490 |
Total Cost (Benefit) | -11,432 | -12,188 |
Amortization of prior service credit (cost) | 69 | -102 |
Total Recognized in Other Comprehensive Income (Before Tax Effects) | -698 | 7,284 |
Defined Benefit Pension Plan [Member] | ||
Defined Benefit Plan Disclosure [Line Items] | ||
Service cost | 7,252 | 7,537 |
Interest cost | 12,780 | 13,082 |
Expected return on assets | -31,545 | -30,263 |
Amortization of prior service cost (credit) | 81 | 82 |
Recognized actuarial loss (gain) | 0 | -7,038 |
Net Periodic Cost (Benefit) | -11,432 | -16,600 |
Early retirement program expense | 0 | 4,490 |
Total Cost (Benefit) | -11,432 | -12,110 |
Supplemental Executive Retirement Plan (SERP) [Member] | ||
Defined Benefit Plan Disclosure [Line Items] | ||
Service cost | 509 | 373 |
Interest cost | 1,135 | 1,085 |
Amortization of prior service cost (credit) | 114 | 12 |
Recognized actuarial loss (gain) | 878 | 375 |
Net Periodic Cost (Benefit) | 2,636 | 1,845 |
Other Postretirement Plans [Member] | ||
Defined Benefit Plan Disclosure [Line Items] | ||
Service cost | 333 | 375 |
Interest cost | 325 | 362 |
Amortization of prior service cost (credit) | -126 | -196 |
Recognized actuarial loss (gain) | -249 | -519 |
Net Periodic Cost (Benefit) | $283 | $22 |
Pension_and_Postretirement_Pla4
Pension and Postretirement Plans (Asset Allocation) (Details 9) (Defined Benefit Pension Plans [Member]) | Mar. 31, 2015 | Dec. 31, 2014 |
Defined Benefit Plan Disclosure [Line Items] | ||
Defined Benefit Plan Assets Allocation (Percent) | 100.00% | 100.00% |
UNITED STATES | U.S. equities [Member] | ||
Defined Benefit Plan Disclosure [Line Items] | ||
Defined Benefit Plan Assets Allocation (Percent) | 55.00% | 59.00% |
UNITED STATES | U.S. fixed income [Member] | ||
Defined Benefit Plan Disclosure [Line Items] | ||
Defined Benefit Plan Assets Allocation (Percent) | 12.00% | 13.00% |
International [Member] | International equities [Member] | ||
Defined Benefit Plan Disclosure [Line Items] | ||
Defined Benefit Plan Assets Allocation (Percent) | 33.00% | 28.00% |
Other_NonOperating_Income_Expe2
Other Non-Operating Income (Expense) (Narrative) (Details) (USD $) | 0 Months Ended | 3 Months Ended | |||
Mar. 27, 2014 | Mar. 31, 2015 | Mar. 31, 2014 | Jun. 30, 2014 | Jan. 31, 2015 | |
Investment [Line Items] | |||||
Gain on Celtic joint venture transaction | $5,972,000 | $0 | |||
Prior periods adjustments | 0 | 0 | |||
Estimated loss on sale of KHE Campuses | 0 | 0 | |||
Proceeds from sale of building | 158,000,000 | ||||
Gain on sale of headquarters building | 0 | 127,670,000 | |||
Berkshire Exchange Transaction [Member] | |||||
Investment [Line Items] | |||||
Amount of Cash Exchanged to Berkshire | 327,700,000 | ||||
Common Class B [Member] | Berkshire Exchange Transaction [Member] | |||||
Investment [Line Items] | |||||
Number of shares received in Berkshire Hathaway agreement | 1,620,190 | ||||
Celtic Healthcare Inc [Member] | Celtic Healthcare Allegheny Health Network Joint Venture [Member] | |||||
Investment [Line Items] | |||||
Gain on Celtic joint venture transaction | $6,000,000 | ||||
Berkshire Hathaway Inc [Member] | Common Class A [Member] | Berkshire Exchange Transaction [Member] | |||||
Investment [Line Items] | |||||
Number of Berkshire Shares Exchanged | 2,107 | ||||
Berkshire Hathaway Inc [Member] | Common Class B [Member] | Berkshire Exchange Transaction [Member] | |||||
Investment [Line Items] | |||||
Number of Berkshire Shares Exchanged | 1,278 | ||||
Celtic Healthcare Allegheny Health Network Joint Venture [Member] | |||||
Investment [Line Items] | |||||
Equity Method Investment, Ownership Percentage | 40.00% | ||||
Celtic Healthcare Allegheny Health Network Joint Venture [Member] | Celtic Healthcare Inc [Member] | |||||
Investment [Line Items] | |||||
Equity Method Investment, Ownership Percentage | 40.00% |
Other_NonOperating_Income_Expe3
Other Non-Operating Income (Expense) (Details 1) (USD $) | 3 Months Ended | |
In Thousands, unless otherwise specified | Mar. 31, 2015 | Mar. 31, 2014 |
Other Nonoperating Income (Expense) [Abstract] | ||
Foreign currency (loss) gain, net | ($6,827) | $5,037 |
Gain on formation of joint venture | 5,972 | 0 |
Additional gain on sale of Classified Ventures | 0 | 0 |
Estimated loss on sale of KHE Campuses | 0 | 0 |
Gain on sale of headquarters building | 0 | 127,670 |
Losses on sales or write-down of marketable equity securities | 0 | -785 |
Other, net | -250 | 1,351 |
Total Other Non-Operating (Expense) Income | ($1,105) | $133,273 |
Accumulated_Other_Comprehensiv2
Accumulated Other Comprehensive Income (Loss) (Components of OCI) (Details 1) (USD $) | 3 Months Ended | |
In Thousands, unless otherwise specified | Mar. 31, 2015 | Mar. 31, 2014 |
Foreign currency translation adjustments: | ||
Translation adjustments arising during the period, before tax | ($12,088) | $746 |
Translation adjustments arising during the period, income tax | 0 | 0 |
Translation adjustments arising during the period, after tax | -12,088 | 746 |
Adjustment for sale of a business with foreign operations, before tax | -41 | 0 |
Adjustment for sale of a business with foreign operations, income tax | 0 | 0 |
Adjustment for sale of a business with foreign operations, after tax | -41 | 0 |
Total foreign currency translation adjustments, before tax | -12,129 | 746 |
Total foreign currency translation adjustments, income tax | 0 | 0 |
Total foreign currency translation adjustments, after tax | -12,129 | 746 |
Unrealized gains on available-for-sale securities: | ||
Unrealized (losses) gains for the period, before tax | -8,878 | 27,738 |
Unrealized (losses) gains for the period, tax | 3,552 | -11,096 |
Unrealized (losses) gains for the period, after tax | -5,326 | 16,642 |
Reclassification adjustment for realization of (gain) loss on exchange, sale or write-down of available-for-sale securities included in net income, before tax | 0 | 785 |
Reclassification adjustment for realization of (gain) loss on exchange, sale or write-down of available-for-sale securities included in net income, income tax | 0 | -314 |
Reclassification adjustment for realization of (gain) loss on exchange, sale or write-down of available-for-sale securities included in net income, after tax | 0 | 471 |
Total unrealized (losses) gains on available-for-sale securities, before tax | -8,878 | 28,523 |
Total unrealized (losses) gains on available-for-sale securities, income tax | 3,552 | -11,410 |
Total unrealized (losses) gains on available-for-sale securities, after tax | -5,326 | 17,113 |
Pension and other postretirement plans: | ||
Amortization of net prior service cost (credit) included in net income | 69 | -102 |
Amortization of net prior service cost (credit) included in net income, income tax | -27 | 40 |
Amortization of net prior service cost (credit) included in net income, after tax | 42 | -62 |
Amortization of net actuarial loss (gain) included in net income, before tax | 629 | -7,182 |
Amortization of net actuarial loss (gain) included in net income, income tax | -252 | 2,873 |
Amortization of net actuarial loss (gain) included in net income, after tax | 377 | -4,309 |
Total pension and other postretirement plans, before tax | 698 | -7,284 |
Total pension and other postretirement plans, income tax | -279 | 2,913 |
Total pension and other postretirement plans, after tax | 419 | -4,371 |
Cash flow hedge: | ||
Gain for the period, before tax | 179 | 172 |
Gain for the period, income tax | -71 | -69 |
Gain for the period, after tax | 108 | 103 |
Other Comprehensive (Loss) Income, before tax | -20,130 | 22,157 |
Other Comprehensive (Loss) Income, income tax | 3,202 | -8,566 |
Other Comprehensive (Loss) Income, after tax | ($16,928) | $13,591 |
Accumulated_Other_Comprehensiv3
Accumulated Other Comprehensive Income (Loss) (AOCI balances) (Details 2) (USD $) | 3 Months Ended | |
In Thousands, unless otherwise specified | Mar. 31, 2015 | Mar. 31, 2014 |
Accumulated Other Comprehensive Income (Loss) [Line Items] | ||
Accumulated Other Comprehensive Income, beginning balance | $453,480 | |
Other comprehensive (loss) income before reclassifications | -17,385 | |
Net amount reclassified from accumulated other comprehensive income | 457 | |
Other Comprehensive (Loss) Income, Net of Tax | -16,928 | 13,591 |
Accumulated Other Comprehensive Income, ending balance | 436,552 | |
Foreign Currency Translation Adjustment [Member] | ||
Accumulated Other Comprehensive Income (Loss) [Line Items] | ||
Accumulated Other Comprehensive Income, beginning balance | 8,548 | |
Other comprehensive (loss) income before reclassifications | -12,088 | |
Net amount reclassified from accumulated other comprehensive income | -41 | |
Other Comprehensive (Loss) Income, Net of Tax | -12,129 | |
Accumulated Other Comprehensive Income, ending balance | -3,581 | |
Unrealized Gain on Available-for-Sale Securities [Member] | ||
Accumulated Other Comprehensive Income (Loss) [Line Items] | ||
Accumulated Other Comprehensive Income, beginning balance | 52,130 | |
Other comprehensive (loss) income before reclassifications | -5,326 | |
Net amount reclassified from accumulated other comprehensive income | 0 | |
Other Comprehensive (Loss) Income, Net of Tax | -5,326 | |
Accumulated Other Comprehensive Income, ending balance | 46,804 | |
Unrealized Gain on Pensions and Other Postretirement Plans [Member] | ||
Accumulated Other Comprehensive Income (Loss) [Line Items] | ||
Accumulated Other Comprehensive Income, beginning balance | 392,910 | |
Other comprehensive (loss) income before reclassifications | 0 | |
Net amount reclassified from accumulated other comprehensive income | 419 | |
Other Comprehensive (Loss) Income, Net of Tax | 419 | |
Accumulated Other Comprehensive Income, ending balance | 393,329 | |
Cash Flow Hedge [Member] | ||
Accumulated Other Comprehensive Income (Loss) [Line Items] | ||
Accumulated Other Comprehensive Income, beginning balance | -108 | |
Other comprehensive (loss) income before reclassifications | 29 | |
Net amount reclassified from accumulated other comprehensive income | 79 | |
Other Comprehensive (Loss) Income, Net of Tax | 108 | |
Accumulated Other Comprehensive Income, ending balance | $0 |
Accumulated_Other_Comprehensiv4
Accumulated Other Comprehensive Income (Loss) (Reclassifications out of AOCI) (Details 3) (USD $) | 3 Months Ended | |||
In Thousands, unless otherwise specified | Mar. 31, 2015 | Mar. 31, 2014 | ||
Reclassification Adjustment Out Of Accumulated Other Comprehensive Income [Line Items] | ||||
(Loss) Income from Discontinued Operations, Net of Tax | ($784) | $1,732 | ||
Interest expense | 8,521 | 8,820 | ||
Income tax on unrealized gains on available-for-sale securities reclassified out of accumulated other comprehensive income | 0 | -314 | ||
Other (expense) income, net | 1,105 | -133,273 | ||
Amortization of net prior service cost (credit) included in net income | 69 | -102 | ||
Amortization of net actuarial loss (gain) included in net income | 629 | -7,182 | ||
Income Before Tax | -37,084 | -207,973 | ||
Provision for Income Taxes | 14,500 | 77,400 | ||
Income Net of Tax | -22,584 | -130,573 | ||
Reclassification out of Accumulated Other Comprehensive Income [Member] | ||||
Reclassification Adjustment Out Of Accumulated Other Comprehensive Income [Line Items] | ||||
Income Net of Tax | 457 | -3,773 | ||
Foreign Currency Translation Adjustment [Member] | Reclassification out of Accumulated Other Comprehensive Income [Member] | ||||
Reclassification Adjustment Out Of Accumulated Other Comprehensive Income [Line Items] | ||||
(Loss) Income from Discontinued Operations, Net of Tax | -41 | 0 | ||
Unrealized Gain on Available-for-Sale Securities [Member] | Reclassification out of Accumulated Other Comprehensive Income [Member] | ||||
Reclassification Adjustment Out Of Accumulated Other Comprehensive Income [Line Items] | ||||
Other (expense) income, net | 0 | 785 | ||
Provision for Income Taxes | 0 | -314 | ||
Income Net of Tax | 0 | 471 | ||
Pension and Other Postretirement Plans [Member] | ||||
Reclassification Adjustment Out Of Accumulated Other Comprehensive Income [Line Items] | ||||
Amortization of net prior service cost (credit) included in net income | 69 | [1] | -102 | [1] |
Amortization of net actuarial loss (gain) included in net income | 629 | [1] | -7,182 | [1] |
Pension and Other Postretirement Plans [Member] | Reclassification out of Accumulated Other Comprehensive Income [Member] | ||||
Reclassification Adjustment Out Of Accumulated Other Comprehensive Income [Line Items] | ||||
Income Before Tax | 698 | -7,284 | ||
Provision for Income Taxes | -279 | 2,913 | ||
Income Net of Tax | 419 | -4,371 | ||
Cash Flow Hedge [Member] | Reclassification out of Accumulated Other Comprehensive Income [Member] | ||||
Reclassification Adjustment Out Of Accumulated Other Comprehensive Income [Line Items] | ||||
Interest expense | 132 | 212 | ||
Provision for Income Taxes | -53 | -85 | ||
Income Net of Tax | $79 | $127 | ||
[1] | These accumulated other comprehensive income components are included in the computation of net periodic pension and postretirement plan cost (see Note 9). |
Contingencies_Details
Contingencies (Details) | 3 Months Ended | |||
Mar. 31, 2015 | Aug. 17, 2011 | Mar. 11, 2015 | Feb. 13, 2013 | |
claim | claim | allegations | ||
Loss Contingencies [Line Items] | ||||
Number of existing legal claims or proceedings that are likely to have a material effect on the Company's business | 0 | |||
Higher Education [Member] | ||||
Loss Contingencies [Line Items] | ||||
Percentage of receipts from Title IV programs | 90.00% | |||
Portion of regulations under 90/10 rule | a KHE school would lose its eligibility to participate in Title IV programs for a period of at least two fiscal years if the institution derives more than 90% of its receipts from Title IV programs, as calculated on a cash basis in accordance with the Higher Education Act and applicable ED regulations, in each of two consecutive fiscal years. An institution with Title IV receipts exceeding 90% for a single fiscal year would be placed on provisional certification and may be subject to other enforcement measures. | |||
Title IV Participating Institutions Including Broomall PA and Pittsburgh PA and Kaplan University [Member] | Higher Education [Member] | ||||
Loss Contingencies [Line Items] | ||||
Number of pending program reviews | 5 | |||
Diaz Case [Member] | ||||
Loss Contingencies [Line Items] | ||||
Number of allegations not dismissed | 1 | |||
Diaz Case [Member] | Education [Member] | ||||
Loss Contingencies [Line Items] | ||||
Separate Complaints Included In Diaz Case Received Rulings | 3 | |||
Diaz Claims [Member] | Education [Member] | ||||
Loss Contingencies [Line Items] | ||||
Number of caims appealed | 4 | |||
Number of claims affirmed for dismissal by US Court of Appeal | 3 | |||
Number of claims revered and remanded by US Court of Appeal | 1 | |||
Urquilla-Diaz And Jajdelski Case [Member] | Education [Member] | ||||
Loss Contingencies [Line Items] | ||||
Number of unsealed cases filed by former employees under the U.S. Federal False Claims Act | 2 | |||
Jajdelski Case [Member] | ||||
Loss Contingencies [Line Items] | ||||
Number of allegations not dismissed | 1 |
Business_Segments_Narrative_De
Business Segments (Narrative) (Details) (USD $) | 3 Months Ended | 1 Months Ended | 3 Months Ended | |
In Thousands, unless otherwise specified | Mar. 31, 2015 | Mar. 31, 2014 | Jan. 31, 2015 | Sep. 30, 2014 |
Segment | school | school | ||
Segment Reporting Information [Line Items] | ||||
Number of reportable segments | 6 | |||
Prior periods adjustments | $0 | $0 | ||
Total operating revenues | ($846,148) | ($836,541) | ||
Kaplan International [Member] | Kaplan China [Member] | ||||
Segment Reporting Information [Line Items] | ||||
Number of schools sold | 1 | 3 |
Business_Segments_Information_
Business Segments (Information by Operating Segment) (Details 1) (USD $) | 3 Months Ended | ||
In Thousands, unless otherwise specified | Mar. 31, 2015 | Mar. 31, 2014 | Dec. 31, 2014 |
Segment Reporting Information [Line Items] | |||
Operating Revenues | $846,148 | $836,541 | |
Income (Loss) from Operations | 46,555 | 78,869 | |
Equity in (losses) earnings of affiliates, net | -404 | 4,052 | |
Interest Expense, Net | -7,962 | -8,221 | |
Other (Expense) Income, Net | -1,105 | 133,273 | |
Income from Continuing Operations Before Income Taxes | 37,084 | 207,973 | |
Depreciation of property, plant and equipment | 58,545 | 53,217 | |
Amortization of intangible assets | 4,769 | 2,717 | |
Net Pension (Credit) Expense | -11,432 | -12,188 | |
Identifiable Assets | 4,088,911 | 4,384,167 | |
Investment in Marketable Equity Securities | 184,915 | 193,793 | |
Investments in Affiliates | 36,120 | 19,811 | |
Prepaid Pension Cost | 1,164,001 | 1,152,488 | |
Assets Held for Sale | 51,443 | 2,060 | |
Total Assets | 5,525,390 | 5,752,319 | |
Operating Segments [Member] | Education [Member] | |||
Segment Reporting Information [Line Items] | |||
Operating Revenues | 500,602 | 522,154 | |
Income (Loss) from Operations | -22,849 | 1,862 | |
Depreciation of property, plant and equipment | 18,528 | 16,416 | |
Amortization of intangible assets | 1,507 | 1,924 | |
Net Pension (Credit) Expense | 3,947 | 4,143 | |
Identifiable Assets | 1,535,949 | 1,781,543 | |
Operating Segments [Member] | Education [Member] | Reportable Subsegments [Member] | Higher Education [Member] | |||
Segment Reporting Information [Line Items] | |||
Operating Revenues | 237,568 | 253,779 | |
Income (Loss) from Operations | 593 | 13,144 | |
Depreciation of property, plant and equipment | 4,828 | 7,740 | |
Net Pension (Credit) Expense | 2,532 | 2,628 | |
Identifiable Assets | 557,851 | 749,421 | |
Operating Segments [Member] | Education [Member] | Reportable Subsegments [Member] | Test Preparation [Member] | |||
Segment Reporting Information [Line Items] | |||
Operating Revenues | 69,226 | 67,804 | |
Income (Loss) from Operations | -4,334 | -6,628 | |
Depreciation of property, plant and equipment | 2,890 | 3,784 | |
Net Pension (Credit) Expense | 775 | 722 | |
Identifiable Assets | 169,493 | 167,055 | |
Operating Segments [Member] | Education [Member] | Reportable Subsegments [Member] | Kaplan International [Member] | |||
Segment Reporting Information [Line Items] | |||
Operating Revenues | 192,081 | 198,847 | |
Income (Loss) from Operations | 7,717 | 9,858 | |
Depreciation of property, plant and equipment | 4,654 | 4,680 | |
Net Pension (Credit) Expense | 106 | 89 | |
Identifiable Assets | 776,129 | 838,148 | |
Operating Segments [Member] | Education [Member] | Reportable Subsegments [Member] | Kaplan Corporate and Other [Member] | |||
Segment Reporting Information [Line Items] | |||
Operating Revenues | 1,859 | 2,014 | |
Income (Loss) from Operations | -26,857 | -14,556 | |
Depreciation of property, plant and equipment | 6,156 | 212 | |
Net Pension (Credit) Expense | 534 | 704 | |
Identifiable Assets | 32,476 | 26,919 | |
Operating Segments [Member] | Education [Member] | Intersubsegment Eliminations [Member] | |||
Segment Reporting Information [Line Items] | |||
Operating Revenues | -132 | -290 | |
Income (Loss) from Operations | 32 | 44 | |
Operating Segments [Member] | Cable [Member] | |||
Segment Reporting Information [Line Items] | |||
Operating Revenues | 198,723 | 203,921 | |
Income (Loss) from Operations | 39,076 | 41,162 | |
Depreciation of property, plant and equipment | 36,348 | 33,787 | |
Amortization of intangible assets | 31 | 35 | |
Net Pension (Credit) Expense | 975 | 864 | |
Identifiable Assets | 1,254,511 | 1,253,764 | |
Operating Segments [Member] | Television Broadcasting [Member] | |||
Segment Reporting Information [Line Items] | |||
Operating Revenues | 83,564 | 85,651 | |
Income (Loss) from Operations | 38,562 | 44,386 | |
Depreciation of property, plant and equipment | 2,109 | 1,994 | |
Amortization of intangible assets | 63 | 0 | |
Net Pension (Credit) Expense | 391 | 320 | |
Identifiable Assets | 299,983 | 305,426 | |
Operating Segments [Member] | Other Businesses [Member] | |||
Segment Reporting Information [Line Items] | |||
Operating Revenues | 63,259 | 24,913 | |
Income (Loss) from Operations | -5,162 | -10,747 | |
Depreciation of property, plant and equipment | 1,302 | 520 | |
Amortization of intangible assets | 3,168 | 758 | |
Net Pension (Credit) Expense | 193 | 164 | |
Identifiable Assets | 488,748 | 518,807 | |
Operating Segments [Member] | Corporate Office [Member] | |||
Segment Reporting Information [Line Items] | |||
Operating Revenues | 0 | 0 | |
Income (Loss) from Operations | -3,072 | 2,206 | |
Depreciation of property, plant and equipment | 258 | 500 | |
Amortization of intangible assets | 0 | 0 | |
Net Pension (Credit) Expense | -16,938 | -17,679 | |
Identifiable Assets | 509,720 | 524,627 | |
Intersegment Elimination [Member] | |||
Segment Reporting Information [Line Items] | |||
Operating Revenues | $0 | ($98) |