Document and Entity Information
Document and Entity Information - shares | 6 Months Ended | |
Jun. 30, 2015 | Jul. 31, 2015 | |
Document Type | 10-Q | |
Amendment Flag | false | |
Document Period End Date | Jun. 30, 2015 | |
Document Fiscal Year Focus | 2,015 | |
Document Fiscal Period Focus | Q2 | |
Trading Symbol | ghc | |
Entity Registrant Name | GRAHAM HOLDINGS CO | |
Entity Central Index Key | 104,889 | |
Current Fiscal Year End Date | --12-31 | |
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 | 4,876,593 |
Condensed Consolidated Statemen
Condensed Consolidated Statements of Operations - USD ($) shares in Thousands, $ in Thousands | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2015 | Jun. 30, 2014 | Jun. 30, 2015 | Jun. 30, 2014 | |
Operating Revenues [Abstract] | ||||
Education | $ 523,625 | $ 542,964 | $ 1,024,227 | $ 1,065,118 |
Subscriber | 188,022 | 187,723 | 375,619 | 378,851 |
Advertising | 77,457 | 82,475 | 151,484 | 160,722 |
Other | 90,467 | 61,249 | 174,389 | 106,261 |
Total Operating Revenues | 879,571 | 874,411 | 1,725,719 | 1,710,952 |
Operating Costs and Expenses [Abstract] | ||||
Operating | 383,891 | 395,627 | 766,968 | 772,090 |
Selling, general and administrative | 334,218 | 322,240 | 687,420 | 647,515 |
Depreciation of property, plant and equipment | 61,014 | 51,989 | 119,559 | 105,206 |
Amortization of intangible assets | 4,677 | 2,995 | 9,446 | 5,712 |
Impairment of long-lived assets | 6,876 | 0 | 6,876 | 0 |
Total Operating Costs and Expenses | 790,676 | 772,851 | 1,590,269 | 1,530,523 |
Income from Operations | 88,895 | 101,560 | 135,450 | 180,429 |
Equity in (losses) earnings of affiliates, net | (353) | 91,503 | (757) | 95,555 |
Interest income | 338 | 641 | 897 | 1,240 |
Interest expense | (9,631) | (8,557) | (18,152) | (17,377) |
Other income, net | 11,678 | 268,114 | 10,573 | 401,387 |
Income from Continuing Operations Before Income Taxes | 90,927 | 453,261 | 128,011 | 661,234 |
Provision for Income Taxes | 32,500 | 78,600 | 47,000 | 156,000 |
Income from Continuing Operations | 58,427 | 374,661 | 81,011 | 505,234 |
Income (Loss) from Discontinued Operations, Net of Tax | 0 | 375,189 | (784) | 376,921 |
Net Income | 58,427 | 749,850 | 80,227 | 882,155 |
Net (Income) Loss Attributable to Noncontrolling Interests | (434) | 499 | (1,208) | 718 |
Net Income Attributable to Graham Holdings Company | 57,993 | 750,349 | 79,019 | 882,873 |
Redeemable Preferred Stock Dividends | (211) | (212) | (631) | (638) |
Net income attributable to Graham Holdings Company common stockholders | 57,782 | 750,137 | 78,388 | 882,235 |
Amounts Attributable to Graham Holdings Company Common Stockholders | ||||
Income from continuing operations | 57,782 | 374,948 | 79,172 | 505,314 |
Income (loss) from discontinued operations, net of tax | 0 | 375,189 | (784) | 376,921 |
Net income attributable to Graham Holdings Company common stockholders | $ 57,782 | $ 750,137 | $ 78,388 | $ 882,235 |
Per Share Information Attributable to Graham Holdings Company Common Stockholders | ||||
Basic income per common share from continuing operations in dollars per share | $ 9.92 | $ 50.39 | $ 13.61 | $ 67.97 |
Basic income (loss) per common share from discontinued operations in dollars per share | 0 | 50.41 | (0.14) | 50.68 |
Basic net income per common share in dollars per share | $ 9.92 | $ 100.80 | $ 13.47 | $ 118.65 |
Basic average number of common shares outstanding in shares | 5,720 | 7,284 | 5,712 | 7,280 |
Diluted income per common share from continuing operations in dollars per share | $ 9.87 | $ 50.22 | $ 13.53 | $ 67.74 |
Diluted income (loss) per common share from discontinued operations in dollars per share | 0 | 50.26 | (0.13) | 50.52 |
Diluted net income per common share in dollars per share | $ 9.87 | $ 100.48 | $ 13.40 | $ 118.26 |
Diluted average number of common shares outstanding in shares | 5,805 | 7,363 | 5,798 | 7,361 |
Condensed Consolidated Stateme3
Condensed Consolidated Statements of Comprehensive Income - USD ($) $ in Thousands | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2015 | Jun. 30, 2014 | Jun. 30, 2015 | Jun. 30, 2014 | |
Statement of Comprehensive Income [Abstract] | ||||
Net Income | $ 58,427 | $ 749,850 | $ 80,227 | $ 882,155 |
Foreign currency translation adjustments: | ||||
Translation adjustments arising during the period | 5,249 | 1,920 | (6,839) | 2,666 |
Adjustment for sales of businesses with foreign operations | (484) | 0 | (525) | 0 |
Total foreign currency translation adjustments, before tax | 4,765 | 1,920 | (7,364) | 2,666 |
Unrealized (losses) gains on available-for-sale securities: | ||||
Unrealized (losses) gains for the period, net | (11,455) | 8,667 | (20,333) | 36,405 |
Reclassification adjustment for realization of (gain) loss on exchange, sale or write-down of available-for-sale securities included in net income | 0 | (266,059) | 0 | (265,274) |
Total unrealized (losses) gains on available-for-sale securities, before tax | (11,455) | (257,392) | (20,333) | (228,869) |
Pension and other postretirement plans: | ||||
Amortization of net prior service cost (credit) included in net income | 70 | (102) | 139 | (204) |
Amortization of net actuarial loss (gain) included in net income | 628 | (7,425) | 1,257 | (14,607) |
Total pension and other postretirement plans, before tax | 698 | (7,527) | 1,396 | (14,811) |
Cash flow hedge gain | 0 | 239 | 179 | 411 |
Other Comprehensive Loss, Before Tax | (5,992) | (262,760) | (26,122) | (240,603) |
Income tax benefit related to items of other comprehensive loss | 4,303 | 105,874 | 7,505 | 97,308 |
Other Comprehensive Loss, Net of Tax | (1,689) | (156,886) | (18,617) | (143,295) |
Comprehensive Income | 56,738 | 592,964 | 61,610 | 738,860 |
Comprehensive (income) loss attributable to noncontrolling interests | (434) | 499 | (1,208) | 718 |
Total Comprehensive Income Attributable to Graham Holdings Company | $ 56,304 | $ 593,463 | $ 60,402 | $ 739,578 |
Condensed Consolidated Balance
Condensed Consolidated Balance Sheets - USD ($) $ in Thousands | Jun. 30, 2015 | Dec. 31, 2014 |
Current Assets | ||
Cash and cash equivalents | $ 1,219,334 | $ 772,751 |
Restricted cash | 25,848 | 24,898 |
Investments in marketable equity securities and other investments | 200,850 | 226,752 |
Accounts receivable, net | 533,144 | 571,357 |
Deferred income taxes | 8,416 | 934 |
Inventories and contracts in progress | 12,019 | 11,309 |
Other current assets | 94,424 | 81,462 |
Current assets held for sale (includes $0 and $1,235 of cash, respectively) | 18,999 | 1,240 |
Total Current Assets | 2,113,034 | 1,690,703 |
Property, Plant and Equipment, Net | 819,343 | 860,829 |
Investments in Affiliates | 50,898 | 19,811 |
Goodwill, Net | 1,325,761 | 1,348,710 |
Indefinite-Lived Intangible Assets, Net | 510,966 | 516,753 |
Amortized Intangible Assets, Net | 86,820 | 96,947 |
Prepaid Pension Cost | 1,175,521 | 1,152,488 |
Deferred Charges and Other Assets | 72,539 | 65,258 |
Noncurrent Assets Held for Sale | 27,058 | 820 |
Total Assets | 6,181,940 | 5,752,319 |
Current Liabilities | ||
Accounts payable and accrued liabilities | 502,312 | 464,342 |
Income taxes payable | 8,230 | 128,895 |
Deferred revenue | 348,856 | 410,146 |
Dividends declared | 15,669 | 0 |
Short-term borrowings | 7,537 | 46,375 |
Current liabilities held for sale | 21,140 | 1,034 |
Total Current Liabilities | 903,744 | 1,050,792 |
Postretirement Benefits Other Than Pensions | 38,325 | 37,962 |
Accrued Compensation and Related Benefits | 239,804 | 244,082 |
Other Liabilities | 74,958 | 91,789 |
Deferred Income Taxes | 757,542 | 754,960 |
Long-Term Debt | 947,219 | 399,545 |
Noncurrent Liabilities Held for Sale | 7,849 | 0 |
Total Liabilities | 2,969,441 | 2,579,130 |
Redeemable Noncontrolling Interest | 23,129 | 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 | 311,901 | 303,789 |
Retained earnings | 6,040,539 | 6,008,506 |
Accumulated other comprehensive income, net of tax | ||
Cumulative foreign currency translation adjustment | 1,184 | 8,548 |
Unrealized gain on available-for-sale securities | 39,931 | 52,130 |
Unrealized gain on pensions and other postretirement plans | 393,748 | 392,910 |
Cash flow hedge | 0 | (108) |
Cost of Class B common stock held in treasury | (3,628,443) | (3,645,476) |
Total Common Stockholders’ Equity | 3,178,860 | 3,140,299 |
Noncontrolling Interests | 0 | 476 |
Total Equity | 3,178,860 | 3,140,775 |
Total Liabilities and Equity | $ 6,181,940 | $ 5,752,319 |
Consolidated Balance Sheets (Pa
Consolidated Balance Sheets (Parentheticals) - USD ($) $ in Thousands | Jun. 30, 2015 | Dec. 31, 2014 |
Cash held for sale | $ 0 | $ 1,235 |
Condensed Consolidated Stateme6
Condensed Consolidated Statements of Cash Flows - USD ($) $ in Thousands | 6 Months Ended | |
Jun. 30, 2015 | Jun. 30, 2014 | |
Cash Flows from Operating Activities | ||
Net Income | $ 80,227 | $ 882,155 |
Adjustments to reconcile net income to net cash provided by operating activities: | ||
Depreciation of property, plant and equipment | 119,559 | 106,822 |
Amortization of intangible assets | 9,446 | 6,441 |
Intangible and other long-lived assets impairment charge | 6,876 | 7,774 |
Net pension benefit | (22,872) | (34,433) |
Early retirement program expense | 0 | 4,490 |
Stock-based compensation expense, net | 13,843 | 6,100 |
Foreign exchange loss (gain) | 3,219 | (7,946) |
Net gain on sales and disposition of businesses | (8,158) | (358,963) |
Net loss (gain) on disposition or write-downs of marketable equity securities and cost method investments | 250 | (266,423) |
Gain on sale of equity affiliate | (4,827) | 0 |
Equity in losses (earnings) of affiliates, net of certain distributions | 948 | (98,555) |
(Benefit) provision for deferred income taxes | (1,858) | 3,880 |
Net loss (gain) on sale or write-down of property, plant and equipment | 1,258 | (119,086) |
Change in assets and liabilities: | ||
(Increase) decrease in restricted cash | (1,635) | 47,686 |
Decrease in accounts receivable, net | 26,950 | 32,429 |
Increase (decrease) in accounts payable and accrued liabilities | 47,530 | (69,916) |
Decrease in deferred revenue | (45,219) | (6,219) |
(Decrease) increase in income taxes payable | (120,480) | 70,580 |
(Increase) decrease in other assets and other liabilities, net | (28,256) | 1,051 |
Other | 489 | 111 |
Net Cash Provided by Operating Activities | 77,290 | 207,978 |
Cash Flows from Investing Activities | ||
Purchases of property, plant and equipment | (100,240) | (112,154) |
Investments in equity affiliates and cost method investments | (16,834) | (2,565) |
Net proceeds from sales of businesses, property, plant and equipment and other assets | 3,019 | 164,066 |
Investments in commercial paper | 0 | (199,830) |
Investments in certain businesses, net of cash acquired | 0 | (130,767) |
Proceeds from maturities of commercial paper | 0 | 99,893 |
Net distribution from equity affiliate | 0 | 93,481 |
Other | 0 | (5,024) |
Net Cash Used in Investing Activities | (114,055) | (92,900) |
Cash Flows from Financing Activities | ||
Issuance of borrowings | 550,000 | 0 |
Payments of Financing Costs | (9,865) | 0 |
Repayments of borrowings | (39,343) | (1,305) |
Dividends paid | (31,316) | (38,148) |
Proceeds from exercise of stock options | 11,302 | 4,688 |
Common shares repurchased, including the Berkshire Exchange transaction | 0 | (327,718) |
Other | 5,232 | 640 |
Net Cash Provided by (Used in) Financing Activities | 486,010 | (361,843) |
Effect of Currency Exchange Rate Change | (3,897) | 2,069 |
Net Increase (Decrease) in Cash and Cash Equivalents | 445,348 | (244,696) |
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 | $ 1,219,334 | $ 325,023 |
Organization, Basis of Presenta
Organization, Basis of Presentation and Recent Accounting Pronouncements | 6 Months Ended |
Jun. 30, 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. On July 1, 2015, the Company completed the spin-off of its wholly owned subsidiary, Cable One, Inc. (Cable ONE), by way of a distribution of all the issued and outstanding shares of Cable ONE common stock, on a pro rata basis, to the Company's stockholders. The Company will reflect Cable ONE's historical financial results for the periods prior to the spin-off as discontinued operations in its consolidated financial statements beginning in the third quarter of 2015. 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 and six months ended June 30, 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 six months ended June 30, 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 six months ended June 30, 2014 to properly eliminate noncash capital expenditures. The result of this correction for the six months ended June 30, 2014 , was an increase in net cash used in investing activities of $19.5 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 six months ended June 30, 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: Six Months Ended June 30, 2014 As Previously As (in thousands) Reported Revision Revised Cash Flows from Operating Activities Decrease in Accounts Payable and Accrued Liabilities $ (89,443 ) $ 19,527 $ (69,916 ) Net Cash Provided by Operating Activities 188,451 19,527 207,978 Cash Flows from Investing Activities Purchases of Property, Plant and Equipment $ (92,627 ) $ (19,527 ) $ (112,154 ) Net Cash Used in Investing Activities (73,373 ) (19,527 ) (92,900 ) 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 | 6 Months Ended |
Jun. 30, 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; a $375.0 million gain from the WPLG sale was recorded in the second quarter of 2014. 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 income (loss) from discontinued operations, net of tax, is presented below: Three Months Ended Six Months Ended (in thousands) 2015 2014 2015 2014 Operating revenues $ — $ 25,125 $ — $ 45,419 Operating costs and expenses — (23,862 ) — (37,355 ) Income from discontinued operations — 1,263 — 8,064 Provision from income taxes — 1,113 — 3,139 Net Income from Discontinued Operations — 150 — 4,925 Gain (loss) on sales of discontinued operations — 358,964 (732 ) 354,227 (Benefit) expense from income taxes on sales of discontinued operations — (16,075 ) 52 (17,769 ) Income (Loss) from Discontinued Operations, Net of Tax $ — $ 375,189 $ (784 ) $ 376,921 |
Investments
Investments | 6 Months Ended |
Jun. 30, 2015 | |
Investments [Abstract] | |
Investments | INVESTMENTS As of June 30, 2015 and December 31, 2014 , the Company had commercial paper and money market investments of $1,040.2 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 June 30, December 31, (in thousands) Total cost $ 106,909 $ 106,909 Net unrealized gains 66,551 86,884 Total Fair Value $ 173,460 $ 193,793 There were no new investments in marketable equity securities during the first six months of 2015 and 2014 . There were no sales of marketable equity securities in the first six months of 2015 . In the first quarter of 2014, the Company recorded a $0.5 million write-down of the Company's investment in Corinthian Colleges, Inc., a publicly traded company. In the second quarter of 2014, the Company sold its remaining investment in Corinthian Colleges, Inc. During the first six months of 2014 , the proceeds from sales of these marketable securities were $5.8 million and net realized losses were $2.6 million . On June 30, 2014, the Company completed a transaction with Berkshire Hathaway, as described in Note 4, that included the exchange of 2,107 Class A Berkshire shares and 1,278 Class B Berkshire shares owned by the Company; a $266.7 million gain was recorded. In the second quarter of 2015, the Company acquired an approximate 20% in HomeHero, a company that created and manages an online senior home care marketplace, which is accounted for as an investment in affiliate. As of June 30, 2015 , the Company also 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). On April 1, 2014, the Company received a gross cash distribution of $95.0 million from Classified Ventures' sale of apartments.com. In connection with this sale, the Company recorded a pre-tax gain of $90.9 million in the second quarter of 2014. |
Acquisitions, Dispositions, Exc
Acquisitions, Dispositions, Exchanges and Other | 6 Months Ended |
Jun. 30, 2015 | |
Acqusitions and Dispositions [Abstract] | |
Acquisitions, Dispositions, Exchanges and Other | ACQUISITIONS, DISPOSITIONS, EXCHANGES AND OTHER Cable ONE Spin-Off. On July 1, 2015, the Company completed the spin-off of Cable ONE, by way of a distribution of all the issued and outstanding shares of Cable ONE common stock, on a pro rata basis, to the Company's stockholders. Cable ONE is now an independent, publicly traded company. The transaction was structured as a tax-free spin-off of Cable ONE for U.S. Federal income tax purposes. Following the spin-off, the Company does not beneficially own any shares of Cable ONE common stock and will not consolidate the financial results of Cable ONE for the purposes of its own reporting for periods after June 30, 2015. The Company will reflect Cable ONE's historical financial results for the periods prior to the spin-off as discontinued operations in its condensed consolidated financial statements beginning in the third quarter of 2015. Prior to the spin-off, Cable ONE distributed $450 million in cash to the Company using the proceeds from their issuance of unsecured notes of $450 million (see Note 6) in June 2015. Also, in connection with the spin-off, the Company modified the terms of 10,830 restricted stock awards in the second quarter of 2015 affecting 21 Cable ONE employees. The modification resulted in the acceleration of the vesting period of 6,324 restricted stock awards and the forfeiture of 4,506 restricted stock awards. The Company recorded incremental stock compensation expense, net of forfeitures, in the second quarter of 2015 amounting to $3.7 million , which is included in selling, general and administrative expense in the condensed consolidated statement of operations and within the Cable segment operating results. The spin-off resulted in a modification of some of the Company’s outstanding restricted stock awards and stock options due to the equity restructuring on July 1, 2015. The holders of restricted stock awards received Cable ONE restricted common stock, on a pro rata basis, as part of the distribution, while the stock options were modified to add an antidilution provision. The modification of the stock awards resulted in an estimated incremental stock compensation expense of $3.0 million that will be recognized over the remaining service periods of the unvested restricted stock awards through the end of 2018. The modification of some of the stock options resulted in an estimated incremental stock compensation expense of $23.5 million , of which $18.8 million related to fully vested stock options that will be recognized as a one-time expense in the third quarter of 2015, with the remaining $4.7 million recognized over the remaining service periods of the unvested stock options through the end of 2018. As a result of the spin-off, the Company remeasured the accumulated and projected benefit obligation of the pension and SERP as of July 1, 2015, and the Company expects to record a curtailment and settlement gain in the third quarter of 2015. Acquisitions. In the first six months of 2015 , the Company did no t make any acquisitions. In the first six months of 2014 , the Company acquired six business included in other businesses and in its education division totaling $133.5 million ; the purchase price allocation comprised goodwill, other intangible assets, property, plant and equipment, and other current assets. 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 second quarter of 2015, the Company sold The Root, a component of Slate, and Kaplan sold two small businesses, Structuralia, which was part of Kaplan International, and Fire and EMS Training, which was part of Kaplan Higher Education. As a result of these sales, the Company reported gains in other non-operating income (see Note 10). 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 June 30, 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 Six Months Ended June 30 June 30 (in thousands) 2015 2014 2015 2014 Revenue $ 63,036 $ 67,205 $ 124,123 $ 136,263 Operating loss (4,287 ) (4,531 ) (7,301 ) (7,507 ) The carrying amounts of the major classes of assets and liabilities held for sale at June 30, 2015 are as follows: As of (in thousands) June 30, 2015 Restricted cash $ 685 Accounts receivable, net 13,308 Other current assets 5,006 Current Assets Held for Sale $ 18,999 Property, plant and equipment, net $ 12,101 Goodwill, net 7,526 Indefinite-lived intangible assets 5,787 Amortized intangible assets, net 951 Deferred charges and other assets 693 Noncurrent Assets Held for Sale $ 27,058 Accounts payable and accrued liabilities $ 11,139 Deferred revenue 10,001 Current Liabilities Held for Sale $ 21,140 Other liabilities $ 7,849 Noncurrent Liabilities Held for Sale $ 7,849 In the second quarter of 2015, Kaplan recorded a $6.9 million long-lived assets impairment charge in connection with the KHE Campuses business, of which $4.7 million was an unfavorable out of period expense adjustment related to the first quarter of 2015. With respect to this error, the Company has concluded that it was not material to the Company’s financial position or results of operations for the first or second quarter of 2015, based on its consideration of quantitative and qualitative factors. 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 A
Goodwill and Other Intangible Assets | 6 Months Ended |
Jun. 30, 2015 | |
Goodwill and Intangible Assets Disclosure [Abstract] | |
Goodwill and Other Intangible Assets | GOODWILL AND OTHER INTANGIBLE ASSETS In the second quarter of 2014, as a result of regulatory changes impacting Kaplan's operations in China, Kaplan recorded an intangible asset impairment charge of $7.8 million , reported in discontinued operations. The Company estimated the fair value of the student and customer relationships using an income approach. Amortization of intangible assets for the three months ended June 30, 2015 and 2014 was $4.7 million and $3.0 million , respectively. Amortization of intangible assets for the six months ended June 30, 2015 and 2014 was $9.4 million and $5.7 million , respectively. Amortization of intangible assets is estimated to be approximately $9 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 Broadcasting Other Businesses Total 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 Measurement period adjustment — — — 4,570 4,570 Dispositions (1,298 ) — — (7,819 ) (9,117 ) Reclassification to assets held for sale (7,526 ) — — — (7,526 ) Foreign currency exchange rate changes (10,876 ) — — — (10,876 ) Balance as of June 30, 2015 Goodwill 1,037,526 85,488 168,345 142,743 1,434,102 Accumulated impairment losses (102,259 ) — — (6,082 ) (108,341 ) $ 935,267 $ 85,488 $ 168,345 $ 136,661 $ 1,325,761 The Company recorded a $4.6 million measurement period adjustment in the second quarter of 2015 upon the finalization of the purchase accounting related to deferred income taxes in connection with the acquisition of Residential Healthcare, Inc. The balance sheet as of December 31, 2014 has not been revised for the measurement period adjustment as the Company believes it is not material to the Company's financial position. The changes in carrying amount of goodwill at the Company’s education division were as follows: (in thousands) Higher Education Test Preparation Kaplan International Total 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 Dispositions (559 ) — (739 ) (1,298 ) Reclassification to assets held for sale (7,526 ) — — (7,526 ) Foreign currency exchange rate changes (124 ) — (10,752 ) (10,876 ) Balance as of June 30, 2015 Goodwill 401,675 166,098 469,753 1,037,526 Accumulated impairment losses — (102,259 ) — (102,259 ) $ 401,675 $ 63,839 $ 469,753 $ 935,267 Other intangible assets consist of the following: As of June 30, 2015 As of December 31, 2014 (in thousands) Useful Life Range Gross Carrying Amount Accumulated Amortization Net Carrying Amount Gross Accumulated Net Amortized Intangible Assets Noncompete agreements 2–5 years $ 1,681 $ 1,151 $ 530 $ 2,500 $ 1,590 $ 910 Student and customer relationships 2–10 years 101,259 49,320 51,939 104,685 47,539 57,146 Databases and technology 3–5 years 10,518 9,204 1,314 10,501 8,827 1,674 Trade names and trademarks 2–10 years 53,655 21,742 31,913 55,452 19,724 35,728 Other 1–25 years 6,316 5,192 1,124 8,969 7,480 1,489 $ 173,429 $ 86,609 $ 86,820 $ 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 | 6 Months Ended |
Jun. 30, 2015 | |
Debt Disclosure [Abstract] | |
Debt | DEBT The Company’s borrowings consist of the following: As of June 30, December 31, (in thousands) 7.25% unsecured notes due February 1, 2019 $ 398,515 $ 398,308 Cable ONE 5.75% unsecured notes due June 15, 2022 450,000 — Cable ONE term loan 100,000 — AUD Revolving credit borrowing — 40,927 Other indebtedness 6,241 6,685 Total Debt 954,756 445,920 Less: current portion (7,537 ) (46,375 ) Total Long-Term Debt $ 947,219 $ 399,545 The Company’s other indebtedness at June 30, 2015 is at interest rates from 3.8% to 6% and matures from 2015 to 2017 . The Company’s other indebtedness at December 31, 2014 is at interest rates from 0% to 6% and matures from 2015 to 2017 . On June 17, 2015, Cable ONE issued $450 million in unsecured seven-year fixed-rate notes due on June 15, 2022 (the Notes). The Notes have a coupon rate of 5.75% per annum, payable semiannually on June 15 and December 15, beginning December 15, 2015. Cable ONE subsequently used the net proceeds from the sale of the Notes and other cash on hand to pay a special one-time cash dividend to the Company of $450 million in connection with the Cable ONE spin-off. Under the terms of the Notes, unless Cable ONE has exercised its right to redeem the Notes, Cable ONE is required to offer to repurchase the Notes in cash at 101% of the principal amount, plus accrued and unpaid interest, upon the occurrence of a Change of Control. On June 30, 2015, Cable ONE entered into a Credit Agreement (the Cable ONE Credit Agreement) among Cable ONE, as borrower, the lenders party thereto, JPMorgan Chase Bank, N.A., as administrative agent, and the other agents party thereto. The Cable ONE Credit Agreement provides for a five-year revolving credit facility in an aggregate principal amount of $200 million (the Revolving Credit Facility) and a five-year term loan facility in an aggregate principal amount of $100 million (the Term Loan Facility and, together with the Revolving Credit Facility, the Senior Credit Facilities). Concurrent with its entry into the Cable ONE Credit Agreement, Cable ONE borrowed the full amount of the Term Loan Facility. Borrowings under the Senior Credit Facilities will bear interest, at Cable ONE’s option, at a rate per annum determined by reference to either LIBOR or an adjusted base rate, in each case plus an applicable interest rate margin. The applicable interest rate margin with respect to LIBOR borrowings will be a rate per annum between 1.50% and 2.25% and the applicable interest rate margin with respect to adjusted base rate borrowings will be a rate per annum between 0.50% and 1.25% , in each case determined on a quarterly basis by reference to a pricing grid based upon Cable ONE’s total net leverage ratio. Borrowings under the Senior Credit Facilities will initially bear interest at LIBOR plus 1.50% per annum or at the adjusted base rate plus 0.50% . In addition, Cable ONE will be required to pay commitment fees on any unused portion of the Revolving Credit Facility at a rate between 0.25% per annum and 0.40% per annum, determined by reference to the pricing grid. The Senior Credit Facilities may be prepaid at any time without premium. The Term Loan Facility will amortize in equal quarterly installments at a rate of 2.5% per annum in the first year after funding, 5.0% per annum in the second year after funding, 7.5% per annum in the third year after funding, 10.0% per annum in the fourth year after funding and 15.0% per annum in the fifth year after funding, with the outstanding balance of the Term Loan Facility to be paid on the fifth anniversary of funding. With the Cable ONE spin-off effective on July 1, 2015, the Cable ONE debt is no longer an obligation of the Company. On June 17, 2015, the Company terminated its U.S. $450 million , AUD 50 million four-year revolving credit facility dated June 17, 2011. No borrowings were outstanding under the 2011 Credit Agreement at the time of termination. On June 29, 2015, the Company entered into a credit agreement (the Credit Agreement) providing for a new U.S. $200 million five-year revolving credit facility (the Facility) with each of the lenders party thereto, Wells Fargo Bank, National Association as Administrative Agent (Wells Fargo), JPMorgan Chase Bank, N.A., as Syndication Agent, and HSBC Bank USA, National Association, as Documentation Agent (the Credit Agreement). The Company is required to pay a commitment fee on a quarterly basis, based on the Company's leverage ratio, of between 0.15% and 0.25% of the amount of the Facility. Any borrowings are made on an unsecured basis and bear interest at the Company’s option, either at (a) a fluctuating interest rate equal to the highest of Wells Fargo’s prime rate, 0.50 percent above the Federal funds rate or the one-month Eurodollar rate plus 1% , or (b) the Eurodollar rate for the applicable interest period as defined in the Credit Agreement which is generally a periodic rate equal to LIBOR, in each case plus an applicable margin that depends on the Company’s consolidated debt to consolidated adjusted EBITDA (as determined pursuant to the Credit Agreement, “leverage ratio”). The Company may draw on the Facility for general corporate purposes. The Facility will expire on July 1, 2020, unless the Company and the banks agree to extend the term. Any outstanding borrowings must be repaid on or prior to the final termination date. The Credit Agreement contains terms and conditions, including remedies in the event of a default by the Company, typical of facilities of this type and requires the Company to maintain a leverage ratio of not greater than 3.5 to 1.0 and a consolidated interest coverage ratio of at least 3.5 to 1.0 based upon the ratio of consolidated adjusted EBITDA to consolidated interest expense as determined pursuant to the Credit Agreement. 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 June 30, 2015 and 2014 , the Company had average borrowings outstanding of approximately $454.4 million and $452.5 million , respectively, at average annual interest rates of approximately 6.8% and 7.0% , respectively. During the three months ended June 30, 2015 and 2014 , the Company incurred net interest expense of $9.3 million and $7.9 million , respectively. During the six months ended June 30, 2015 and 2014 , the Company had average borrowings outstanding of approximately $450.2 million and $451.8 million , respectively, at average annual interest rates of approximately 7.0% . During the six months ended June 30, 2015 and 2014 , the Company incurred net interest expense of $17.3 million and $16.1 million , respectively. At June 30, 2015 , the fair value of the Company’s 7.25% unsecured notes, based on quoted market prices, totaled $447.0 million , compared with the carrying amount of $398.5 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 . At June 30, 2015, the estimated fair value of Cable ONE's 5.75% unsecured notes and term loan were the same as the carrying amounts of $450.0 million and $100.0 million , respectively, due to the close proximity to the debt instruments’ issuance date. The carrying value of the Company’s other unsecured debt at June 30, 2015 approximates fair value. |
Fair Value Measurements
Fair Value Measurements | 6 Months Ended |
Jun. 30, 2015 | |
Fair Value Disclosures [Abstract] | |
Fair Value Measurements | FAIR VALUE MEASUREMENTS The Company’s financial assets and liabilities measured at fair value on a recurring basis were as follows: As of June 30, 2015 (in thousands) Level 1 Level 2 Total Assets Money market investments (1) $ — $ 690,452 $ 690,452 Commercial paper (2) 349,794 — 349,794 Marketable equity securities (3) 173,460 — 173,460 Other current investments (4) 11,311 16,079 27,390 Total Financial Assets $ 534,565 $ 706,531 $ 1,241,096 Liabilities Deferred compensation plan liabilities (5) $ — $ 69,280 $ 69,280 7.25% unsecured notes (6) — 447,000 447,000 Cable ONE 5.75% unsecured notes (6) — 450,000 450,000 Cable ONE term loan (6) — 100,000 100,000 Total Financial Liabilities $ — $ 1,066,280 $ 1,066,280 ___________ _ (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. 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. In the second quarter of 2015, the Company recorded a long-lived asset impairment charge of $6.9 million . In the second quarter of 2014, the Company recorded an intangible asset impairment charge of $7.8 million , reported in discontinued operations (see Note 5). The remeasurements of these long-lived and intangible assets are classified as Level 3 fair value assessments due to the significance of unobservable inputs developed in the determination of the fair values. |
Earnings Per Share
Earnings Per Share | 6 Months Ended |
Jun. 30, 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 Six Months Ended (in thousands, except per share amounts) 2015 2014 2015 2014 Numerator: Numerator for basic earnings per share: Income from continuing operations attributable to Graham Holdings Company common stockholders $ 57,782 $ 374,948 $ 79,172 $ 505,314 Less: Dividends-common stock outstanding and unvested restricted shares (15,484 ) (14,819 ) (46,354 ) (52,494 ) Undistributed earnings 42,298 360,129 32,818 452,820 Percent allocated to common stockholders 98.18 % 97.88 % 98.18 % 97.88 % 41,527 352,507 32,220 443,236 Add: Dividends-common stock outstanding 15,201 14,506 45,506 51,556 Numerator for basic earnings per share $ 56,728 $ 367,013 $ 77,726 $ 494,792 Add: Additional undistributed earnings due to dilutive stock options 4 31 3 40 Numerator for diluted earnings per share $ 56,732 $ 367,044 $ 77,729 $ 494,832 Denominator: Denominator for basic earnings per share: Weighted average shares outstanding 5,720 7,284 5,712 7,280 Add: Effect of dilutive stock options 30 24 32 24 Denominator for diluted earnings per share 5,750 7,308 5,744 7,304 Graham Holdings Company Common Stockholders: Basic earnings per share from continuing operations $ 9.92 $ 50.39 $ 13.61 $ 67.97 Diluted earnings per share from continuing operations $ 9.87 $ 50.22 $ 13.53 $ 67.74 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 Six Months Ended (in thousands) 2015 2014 2015 2014 Weighted average restricted stock 55 55 54 57 The diluted earnings per share amounts for the three and six months ended June 30, 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 and six months ended June 30, 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 and six months ended June 30, 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 and six months ended June 30, 2014 exclude the effects of 5,550 restricted stock awards, as their inclusion would have been antidilutive. In the three and six months ended June 30, 2015 the Company declared regular dividends totaling $2.65 and $7.95 , respectively. In the three and six months ended June 30, 2014 , the Company declared regular dividends totaling $2.55 and $7.65 , respectively. |
Pension and Postretirement Plan
Pension and Postretirement Plans | 6 Months Ended |
Jun. 30, 2015 | |
General Discussion of Pension and Other Postretirement Benefits [Abstract] | |
Pension and Postretirement Plans | 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 June 30 Six Months Ended June 30 (in thousands) 2015 2014 2015 2014 Service cost $ 7,251 $ 6,976 $ 14,503 $ 14,513 Interest cost 12,781 12,894 25,561 25,976 Expected return on assets (31,553 ) (30,504 ) (63,098 ) (60,767 ) Amortization of prior service cost 81 82 162 164 Recognized actuarial gain — (7,281 ) — (14,319 ) Net Periodic Benefit (11,440 ) (17,833 ) (22,872 ) (34,433 ) Early retirement programs expense — — — 4,490 Total Benefit $ (11,440 ) $ (17,833 ) $ (22,872 ) $ (29,943 ) For the three and six months ended June 30, 2014 , the net periodic benefit for the Company's pension plans, as reported above, includes costs of $0.1 million and $0.2 million , respectively, 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. In June 2014, the Company announced that a Voluntary Retirement Incentive Program was offered to certain Corporate employees; the related expense was recorded in the third quarter of 2014. 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 June 30 Six Months Ended June 30 (in thousands) 2015 2014 2015 2014 Service cost $ 509 $ 373 $ 1,018 $ 746 Interest cost 1,135 1,086 2,270 2,171 Amortization of prior service cost 114 11 228 23 Recognized actuarial loss 877 375 1,755 750 Net Periodic Cost $ 2,635 $ 1,845 $ 5,271 $ 3,690 For the three and six months ended June 30, 2014 , the net periodic cost for the Company's SERP, as reported above, includes costs of $0.1 million and $0.2 million , respectively, reported in discontinued operations. Cable ONE Spin-Off. On July 1, 2015, as part of the spin-off, Cable ONE assumed the liability related to their employees participating in the Company's SERP, and the Company eliminated the accrual of pension benefits for all Cable ONE employees related to their future service. As a result, the Company remeasured the accumulated and projected benefit obligation of the pension and SERP as of July 1, 2015, and the Company expects to record a curtailment and settlement gain in the third quarter of 2015. The new measurement basis will be used for the recognition of the Company's pension and SERP (credit) cost beginning in the third quarter of 2015. 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 June 30, December 31, U.S. equities 49 % 59 % U.S. fixed income 16 % 13 % International equities 35 % 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 June 30, 2015 , the managers can invest no more than 24% of the assets in specified international exchanges, 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 June 30, 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 June 30, 2015 , the pension plan held common stock in one investment that exceeded 10% of total plan assets, valued at $723.1 million , or 27% 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 June 30, 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 $725.0 million and $468.0 million at June 30, 2015 and December 31, 2014 , respectively, or approximately 27% 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 June 30 Six Months Ended June 30 (in thousands) 2015 2014 2015 2014 Service cost $ 333 $ 375 $ 666 $ 750 Interest cost 324 362 649 724 Amortization of prior service credit (125 ) (195 ) (251 ) (391 ) Recognized actuarial gain (249 ) (519 ) (498 ) (1,038 ) Net Periodic Cost $ 283 $ 23 $ 566 $ 45 |
Other Non-Operating Income
Other Non-Operating Income | 6 Months Ended |
Jun. 30, 2015 | |
Other Nonoperating Income (Expense) [Abstract] | |
Other Non-Operating Income (Expense) | OTHER NON-OPERATING INCOME A summary of non-operating income is as follows: Three Months Ended Six Months Ended (in thousands) 2015 2014 2015 2014 Additional gain on sale of Classified Ventures $ 4,827 $ — $ 4,827 $ — Foreign currency gain (loss), net 3,608 2,909 (3,219 ) 7,946 Gain on sales of businesses 2,918 — 2,918 — Gain on formation of joint venture — — 5,972 — Gain on Berkshire marketable equity securities exchange — 266,733 — 266,733 Gain on sale of headquarters building — — — 127,670 Losses on sales or write-down of marketable equity securities — (2,259 ) — (3,044 ) Other, net 325 731 75 2,082 Total Other Non-Operating Income $ 11,678 $ 268,114 $ 10,573 $ 401,387 In the second quarter of 2015, the Company sold The Root and Kaplan sold two small businesses for a total gain of $2.9 million . In the second quarter of 2015, the Company benefited from a favorable $4.8 million out of period adjustment to the gain on the sale of Classified Ventures related to the fourth quarter of 2014. With respect to this error, the Company has concluded that it was not material to the Company's financial position or results of operations for 2015 and 2014 and the related interim periods, based on its consideration of quantitative and qualitative factors. 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 June 30, 2014, the Company completed a transaction with Berkshire Hathaway, as described in Note 4 that included the exchange of 2,107 Class A Berkshire shares and 1,278 Class B Berkshire shares owned by the Company; a $266.7 million gain was recorded. 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 Comprehensive
Accumulated Other Comprehensive Income | 6 Months Ended |
Jun. 30, 2015 | |
Accumulated Other Comprehensive Income (Loss), Net of Tax [Abstract] | |
Accumulated Other Comprehensive Income | ACCUMULATED OTHER COMPREHENSIVE INCOME The other comprehensive loss consists of the following components: Three Months Ended June 30 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 $ 5,249 $ — $ 5,249 $ 1,920 $ — $ 1,920 Adjustment for sales of businesses with foreign operations (484 ) — (484 ) — — — 4,765 — 4,765 1,920 — 1,920 Unrealized (losses) gains on available-for-sale securities: Unrealized (losses) gains for the period, net (11,455 ) 4,582 (6,873 ) 8,667 (3,466 ) 5,201 Reclassification adjustment for realization of (gain) loss on exchange or sale of available-for-sale securities included in net income — — — (266,059 ) 106,424 (159,635 ) (11,455 ) 4,582 (6,873 ) (257,392 ) 102,958 (154,434 ) Pension and other postretirement plans: Amortization of net prior service cost (credit) included in net income 70 (28 ) 42 (102 ) 41 (61 ) Amortization of net actuarial loss (gain) included in net income 628 (251 ) 377 (7,425 ) 2,970 (4,455 ) 698 (279 ) 419 (7,527 ) 3,011 (4,516 ) Cash flow hedge: Gain for the period — — — 239 (95 ) 144 Other Comprehensive Loss $ (5,992 ) $ 4,303 $ (1,689 ) $ (262,760 ) $ 105,874 $ (156,886 ) Six Months Ended June 30 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 $ (6,839 ) $ — $ (6,839 ) $ 2,666 $ — $ 2,666 Adjustment for sales of businesses with foreign operations (525 ) — (525 ) — — — (7,364 ) — (7,364 ) 2,666 — 2,666 Unrealized (losses) gains on available-for-sale securities: Unrealized (losses) gains for the period, net (20,333 ) 8,134 (12,199 ) 36,405 (14,562 ) 21,843 Reclassification adjustment for realization of (gain) loss on exchange, sale or write-down of available-for-sale securities included in net income — — — (265,274 ) 106,110 (159,164 ) (20,333 ) 8,134 (12,199 ) (228,869 ) 91,548 (137,321 ) Pension and other postretirement plans: Amortization of net prior service cost (credit) included in net income 139 (55 ) 84 (204 ) 81 (123 ) Amortization of net actuarial loss (gain) included in net income 1,257 (503 ) 754 (14,607 ) 5,843 (8,764 ) 1,396 (558 ) 838 (14,811 ) 5,924 (8,887 ) Cash flow hedge: Gain for the period 179 (71 ) 108 411 (164 ) 247 Other Comprehensive Loss $ (26,122 ) $ 7,505 $ (18,617 ) $ (240,603 ) $ 97,308 $ (143,295 ) The accumulated balances related to each component of other comprehensive income are as follows: (in thousands, net of taxes) Cumulative Foreign Currency Translation Adjustment Unrealized Gain on Available-for- Sale Securities Unrealized Gain on Pensions and Other Postretirement Plans Cash Flow Hedge Accumulated Other Comprehensive Income Balance as of December 31, 2014 $ 8,548 $ 52,130 $ 392,910 $ (108 ) $ 453,480 Other comprehensive (loss) income before reclassifications (6,839 ) (12,199 ) — 29 (19,009 ) Net amount reclassified from accumulated other comprehensive income (525 ) — 838 79 392 Other comprehensive (loss) income, net of tax (7,364 ) (12,199 ) 838 108 (18,617 ) Balance as of June 30, 2015 $ 1,184 $ 39,931 $ 393,748 $ — $ 434,863 The amounts and line items of reclassifications out of Accumulated Other Comprehensive Income are as follows: Three Months Ended Six Months Ended Affected Line Item in the Condensed Consolidated Statement of Operations (in thousands) 2015 2014 2015 2014 Foreign Currency Translation Adjustments: Adjustment for sales of businesses with foreign operations $ (484 ) $ — $ (525 ) $ — Other income, net Unrealized Gains on Available-for-sale Securities: Realized gain for the period $ — $ (266,059 ) $ — $ (265,274 ) Other income, net — 106,424 — 106,110 (1) — (159,635 ) — (159,164 ) Net of Tax Pension and Other Postretirement Plans: Amortization of net prior service cost (credit) 70 (102 ) 139 (204 ) (2) Amortization of net actuarial loss (gain) 628 (7,425 ) 1,257 (14,607 ) (2) 698 (7,527 ) 1,396 (14,811 ) Before tax (279 ) 3,011 (558 ) 5,924 Provision for Income Taxes 419 (4,516 ) 838 (8,887 ) Net of Tax Cash Flow Hedge — 216 132 428 Interest expense — (86 ) (53 ) (171 ) Provision for Income Taxes — 130 79 257 Net of Tax Total reclassification for the period $ (65 ) $ (164,021 ) $ 392 $ (167,794 ) Net of Tax ____________ (1) Benefits of $0.9 million and $1.2 million were recorded in Provision for Income Taxes related to the realized loss for the three and six months ended June 30, 2014, respectively. The remaining $107.3 million for the three and six months ended June 30, 2014, relates to the reversal of income taxes previously recorded on the unrealized gain of the Company’s investment in Berkshire Hathaway Inc. marketable equity securities as part of the Berkshire exchange transaction (see Note 4). (2) These accumulated other comprehensive income components are included in the computation of net periodic pension and postretirement plan cost (see Note 9). |
Contingencies
Contingencies | 6 Months Ended |
Jun. 30, 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; the plaintiff filed a notice of appeal in the second quarter of 2015. On April 30, 2011, KHE received a Civil Investigative Demand (CID) from the Office of the Attorney General of the State of Massachusetts. The demand sought information pertaining to KHE’s nationally accredited campuses in Massachusetts known as the Charlestown and Kenmore Square campuses. For reasons unrelated to the CID, the Charlestown campus closed in November 2013 and the Kenmore Square campus closed in February 2013. KHE has cooperated with the Massachusetts Attorney General and provided all the originally requested information, as well as additional information requested in 2012 and 2013. In October 2014, the Attorney General's office sent KHE a “notice of intention to file” letter, a statutory prerequisite to initiating a lawsuit under section 93A of the Massachusetts consumer fraud statute. In July 2015, KHE resolved the investigation pursuant to an Assurance of Discontinuance (AOD) with the Attorney General's office. The AOD included no finding or admission of wrongdoing by KHE. No lawsuit was filed, and no judgment was entered against KHE in connection with this matter. Pursuant to the AOD, KHE agreed to pay $1,375,000 . 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 | 6 Months Ended |
Jun. 30, 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 Six Months Ended June 30 June 30 (in thousands) 2015 2014 2015 2014 Operating Revenues Education $ 523,625 $ 542,964 $ 1,024,227 $ 1,065,118 Cable 198,681 200,829 397,404 404,750 Television broadcasting 90,753 88,297 174,317 173,948 Other businesses 66,512 42,351 129,771 67,264 Corporate office — — — — Intersegment elimination — (30 ) — (128 ) $ 879,571 $ 874,411 $ 1,725,719 $ 1,710,952 Income (Loss) From Operations Education $ 15,848 $ 17,637 $ (7,001 ) $ 19,499 Cable 38,445 46,780 77,521 87,942 Television broadcasting 42,014 44,088 80,576 88,474 Other businesses (2,161 ) (6,995 ) (7,323 ) (17,742 ) Corporate office (5,251 ) 50 (8,323 ) 2,256 $ 88,895 $ 101,560 $ 135,450 $ 180,429 Equity in (Losses) Earnings of Affiliates, Net (353 ) 91,503 (757 ) 95,555 Interest Expense, Net (9,293 ) (7,916 ) (17,255 ) (16,137 ) Other Income, Net 11,678 268,114 10,573 401,387 Income from Continuing Operations Before Income Taxes $ 90,927 $ 453,261 $ 128,011 $ 661,234 Depreciation of Property, Plant and Equipment Education $ 21,980 $ 15,372 $ 40,508 $ 31,788 Cable 35,405 33,788 71,753 67,575 Television broadcasting 2,125 2,039 4,234 4,033 Other businesses 1,254 780 2,556 1,300 Corporate office 250 10 508 510 $ 61,014 $ 51,989 $ 119,559 $ 105,206 Amortization of Intangible Assets and Impairment of Long-lived Assets Education $ 8,343 $ 1,798 $ 9,850 $ 3,722 Cable 30 59 61 94 Television broadcasting 63 — 126 — Other businesses 3,117 1,138 6,285 1,896 Corporate office — — — — $ 11,553 $ 2,995 $ 16,322 $ 5,712 Net Pension (Credit) Expense Education $ 3,947 $ 3,566 $ 7,894 $ 7,709 Cable 975 888 1,950 1,752 Television broadcasting 391 358 782 678 Other businesses 186 202 379 366 Corporate office (16,939 ) (22,933 ) (33,877 ) (40,612 ) $ (11,440 ) $ (17,919 ) $ (22,872 ) $ (30,107 ) Asset information for the Company’s business segments are as follows: As of (in thousands) June 30, December 31, Identifiable Assets Education $ 1,576,872 $ 1,781,543 Cable television 1,357,414 1,253,764 Television broadcasting 305,857 305,426 Other businesses 479,049 518,807 Corporate office 1,016,812 524,627 $ 4,736,004 $ 4,384,167 Investments in Marketable Equity Securities 173,460 193,793 Investments in Affiliates 50,898 19,811 Prepaid Pension Cost 1,175,521 1,152,488 Assets Held for Sale 46,057 2,060 Total Assets $ 6,181,940 $ 5,752,319 The Company’s education division comprises the following operating segments: Three Months Ended Six Months Ended June 30 June 30 (in thousands) 2015 2014 2015 2014 Operating Revenues Higher education $ 240,717 $ 251,936 $ 478,285 $ 505,715 Test preparation 80,381 81,098 149,607 148,902 Kaplan international 200,703 209,045 392,784 407,892 Kaplan corporate and other 1,959 1,385 3,818 3,399 Intersegment elimination (135 ) (500 ) (267 ) (790 ) $ 523,625 $ 542,964 $ 1,024,227 $ 1,065,118 Income (Loss) from Operations Higher education $ 24,764 $ 20,952 $ 25,357 $ 34,096 Test preparation 7,079 (3,904 ) 2,745 (10,532 ) Kaplan international 17,573 16,898 25,290 26,756 Kaplan corporate and other (33,594 ) (16,401 ) (60,451 ) (30,957 ) Intersegment elimination 26 92 58 136 $ 15,848 $ 17,637 $ (7,001 ) $ 19,499 Depreciation of Property, Plant and Equipment Higher education $ 4,794 $ 7,080 $ 9,622 $ 14,820 Test preparation 2,263 3,072 5,153 6,856 Kaplan international 5,073 4,916 9,727 9,596 Kaplan corporate and other 9,850 304 16,006 516 $ 21,980 $ 15,372 $ 40,508 $ 31,788 Amortization of Intangible Assets $ 1,467 $ 1,798 $ 2,974 $ 3,722 Impairment of Long-lived Assets $ 6,876 $ — $ 6,876 $ — Pension Expense Higher education $ 2,532 $ 2,629 $ 5,064 $ 5,257 Test preparation 775 722 1,550 1,444 Kaplan international 106 89 212 178 Kaplan corporate and other 534 126 1,068 830 $ 3,947 $ 3,566 $ 7,894 $ 7,709 Identifiable assets for the Company’s education division consist of the following: As of (in thousands) June 30, December 31, Identifiable assets Higher education $ 544,306 $ 749,421 Test preparation 155,304 167,055 Kaplan international 836,010 838,148 Kaplan corporate and other 41,252 26,919 $ 1,576,872 $ 1,781,543 |
Organization, Basis of Presen20
Organization, Basis of Presentation And Recent Accounting Pronouncements (Policies) | 6 Months Ended |
Jun. 30, 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 and six months ended June 30, 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 Presen21
Organization, Basis of Presentation and Recent Accounting Pronouncements (Tables) | 6 Months Ended |
Jun. 30, 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: Six Months Ended June 30, 2014 As Previously As (in thousands) Reported Revision Revised Cash Flows from Operating Activities Decrease in Accounts Payable and Accrued Liabilities $ (89,443 ) $ 19,527 $ (69,916 ) Net Cash Provided by Operating Activities 188,451 19,527 207,978 Cash Flows from Investing Activities Purchases of Property, Plant and Equipment $ (92,627 ) $ (19,527 ) $ (112,154 ) Net Cash Used in Investing Activities (73,373 ) (19,527 ) (92,900 ) |
Discontinued Operations (Tables
Discontinued Operations (Tables) | 6 Months Ended |
Jun. 30, 2015 | |
Discontinued Operation, Additional Disclosures [Abstract] | |
Summarized Income (Loss) from Discontinued Operations, Net Of Tax | The summarized income (loss) from discontinued operations, net of tax, is presented below: Three Months Ended Six Months Ended (in thousands) 2015 2014 2015 2014 Operating revenues $ — $ 25,125 $ — $ 45,419 Operating costs and expenses — (23,862 ) — (37,355 ) Income from discontinued operations — 1,263 — 8,064 Provision from income taxes — 1,113 — 3,139 Net Income from Discontinued Operations — 150 — 4,925 Gain (loss) on sales of discontinued operations — 358,964 (732 ) 354,227 (Benefit) expense from income taxes on sales of discontinued operations — (16,075 ) 52 (17,769 ) Income (Loss) from Discontinued Operations, Net of Tax $ — $ 375,189 $ (784 ) $ 376,921 |
Investments (Tables)
Investments (Tables) | 6 Months Ended |
Jun. 30, 2015 | |
Investments [Abstract] | |
Investments in Marketable Equity Securities | Investments in marketable equity securities comprised the following: As of June 30, December 31, (in thousands) Total cost $ 106,909 $ 106,909 Net unrealized gains 66,551 86,884 Total Fair Value $ 173,460 $ 193,793 |
Acquisitions, Dispositions, E24
Acquisitions, Dispositions, Exchanges and Other (Tables) | 6 Months Ended |
Jun. 30, 2015 | |
Acqusitions and Dispositions [Abstract] | |
Information related to Disposal Group Held for Sale | The carrying amounts of the major classes of assets and liabilities held for sale at June 30, 2015 are as follows: As of (in thousands) June 30, 2015 Restricted cash $ 685 Accounts receivable, net 13,308 Other current assets 5,006 Current Assets Held for Sale $ 18,999 Property, plant and equipment, net $ 12,101 Goodwill, net 7,526 Indefinite-lived intangible assets 5,787 Amortized intangible assets, net 951 Deferred charges and other assets 693 Noncurrent Assets Held for Sale $ 27,058 Accounts payable and accrued liabilities $ 11,139 Deferred revenue 10,001 Current Liabilities Held for Sale $ 21,140 Other liabilities $ 7,849 Noncurrent Liabilities Held for Sale $ 7,849 The revenue and operating losses related to schools that are being sold as part of the ECA transaction are as follows: Three Months Ended Six Months Ended June 30 June 30 (in thousands) 2015 2014 2015 2014 Revenue $ 63,036 $ 67,205 $ 124,123 $ 136,263 Operating loss (4,287 ) (4,531 ) (7,301 ) (7,507 ) |
Goodwill and Other Intangible25
Goodwill and Other Intangible Assets (Tables) | 6 Months Ended |
Jun. 30, 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 Broadcasting Other Businesses Total 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 Measurement period adjustment — — — 4,570 4,570 Dispositions (1,298 ) — — (7,819 ) (9,117 ) Reclassification to assets held for sale (7,526 ) — — — (7,526 ) Foreign currency exchange rate changes (10,876 ) — — — (10,876 ) Balance as of June 30, 2015 Goodwill 1,037,526 85,488 168,345 142,743 1,434,102 Accumulated impairment losses (102,259 ) — — (6,082 ) (108,341 ) $ 935,267 $ 85,488 $ 168,345 $ 136,661 $ 1,325,761 |
Other Intangible Assets | Other intangible assets consist of the following: As of June 30, 2015 As of December 31, 2014 (in thousands) Useful Life Range Gross Carrying Amount Accumulated Amortization Net Carrying Amount Gross Accumulated Net Amortized Intangible Assets Noncompete agreements 2–5 years $ 1,681 $ 1,151 $ 530 $ 2,500 $ 1,590 $ 910 Student and customer relationships 2–10 years 101,259 49,320 51,939 104,685 47,539 57,146 Databases and technology 3–5 years 10,518 9,204 1,314 10,501 8,827 1,674 Trade names and trademarks 2–10 years 53,655 21,742 31,913 55,452 19,724 35,728 Other 1–25 years 6,316 5,192 1,124 8,969 7,480 1,489 $ 173,429 $ 86,609 $ 86,820 $ 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 Education Test Preparation Kaplan International Total 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 Dispositions (559 ) — (739 ) (1,298 ) Reclassification to assets held for sale (7,526 ) — — (7,526 ) Foreign currency exchange rate changes (124 ) — (10,752 ) (10,876 ) Balance as of June 30, 2015 Goodwill 401,675 166,098 469,753 1,037,526 Accumulated impairment losses — (102,259 ) — (102,259 ) $ 401,675 $ 63,839 $ 469,753 $ 935,267 |
Debt (Tables)
Debt (Tables) | 6 Months Ended |
Jun. 30, 2015 | |
Debt Disclosure [Abstract] | |
Components of Debt | The Company’s borrowings consist of the following: As of June 30, December 31, (in thousands) 7.25% unsecured notes due February 1, 2019 $ 398,515 $ 398,308 Cable ONE 5.75% unsecured notes due June 15, 2022 450,000 — Cable ONE term loan 100,000 — AUD Revolving credit borrowing — 40,927 Other indebtedness 6,241 6,685 Total Debt 954,756 445,920 Less: current portion (7,537 ) (46,375 ) Total Long-Term Debt $ 947,219 $ 399,545 |
Fair Value Measurements (Tables
Fair Value Measurements (Tables) | 6 Months Ended |
Jun. 30, 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 June 30, 2015 (in thousands) Level 1 Level 2 Total Assets Money market investments (1) $ — $ 690,452 $ 690,452 Commercial paper (2) 349,794 — 349,794 Marketable equity securities (3) 173,460 — 173,460 Other current investments (4) 11,311 16,079 27,390 Total Financial Assets $ 534,565 $ 706,531 $ 1,241,096 Liabilities Deferred compensation plan liabilities (5) $ — $ 69,280 $ 69,280 7.25% unsecured notes (6) — 447,000 447,000 Cable ONE 5.75% unsecured notes (6) — 450,000 450,000 Cable ONE term loan (6) — 100,000 100,000 Total Financial Liabilities $ — $ 1,066,280 $ 1,066,280 ___________ _ (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. 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) | 6 Months Ended |
Jun. 30, 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 Six Months Ended (in thousands, except per share amounts) 2015 2014 2015 2014 Numerator: Numerator for basic earnings per share: Income from continuing operations attributable to Graham Holdings Company common stockholders $ 57,782 $ 374,948 $ 79,172 $ 505,314 Less: Dividends-common stock outstanding and unvested restricted shares (15,484 ) (14,819 ) (46,354 ) (52,494 ) Undistributed earnings 42,298 360,129 32,818 452,820 Percent allocated to common stockholders 98.18 % 97.88 % 98.18 % 97.88 % 41,527 352,507 32,220 443,236 Add: Dividends-common stock outstanding 15,201 14,506 45,506 51,556 Numerator for basic earnings per share $ 56,728 $ 367,013 $ 77,726 $ 494,792 Add: Additional undistributed earnings due to dilutive stock options 4 31 3 40 Numerator for diluted earnings per share $ 56,732 $ 367,044 $ 77,729 $ 494,832 Denominator: Denominator for basic earnings per share: Weighted average shares outstanding 5,720 7,284 5,712 7,280 Add: Effect of dilutive stock options 30 24 32 24 Denominator for diluted earnings per share 5,750 7,308 5,744 7,304 Graham Holdings Company Common Stockholders: Basic earnings per share from continuing operations $ 9.92 $ 50.39 $ 13.61 $ 67.97 Diluted earnings per share from continuing operations $ 9.87 $ 50.22 $ 13.53 $ 67.74 |
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 Six Months Ended (in thousands) 2015 2014 2015 2014 Weighted average restricted stock 55 55 54 57 |
Pension and Postretirement Pl29
Pension and Postretirement Plans (Tables) | 6 Months Ended |
Jun. 30, 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 June 30 Six Months Ended June 30 (in thousands) 2015 2014 2015 2014 Service cost $ 7,251 $ 6,976 $ 14,503 $ 14,513 Interest cost 12,781 12,894 25,561 25,976 Expected return on assets (31,553 ) (30,504 ) (63,098 ) (60,767 ) Amortization of prior service cost 81 82 162 164 Recognized actuarial gain — (7,281 ) — (14,319 ) Net Periodic Benefit (11,440 ) (17,833 ) (22,872 ) (34,433 ) Early retirement programs expense — — — 4,490 Total Benefit $ (11,440 ) $ (17,833 ) $ (22,872 ) $ (29,943 ) |
Schedule of Allocation of Plan Assets | The assets of the Company’s pension plan were allocated as follows: As of June 30, December 31, U.S. equities 49 % 59 % U.S. fixed income 16 % 13 % International equities 35 % 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 June 30 Six Months Ended June 30 (in thousands) 2015 2014 2015 2014 Service cost $ 509 $ 373 $ 1,018 $ 746 Interest cost 1,135 1,086 2,270 2,171 Amortization of prior service cost 114 11 228 23 Recognized actuarial loss 877 375 1,755 750 Net Periodic Cost $ 2,635 $ 1,845 $ 5,271 $ 3,690 |
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 June 30 Six Months Ended June 30 (in thousands) 2015 2014 2015 2014 Service cost $ 333 $ 375 $ 666 $ 750 Interest cost 324 362 649 724 Amortization of prior service credit (125 ) (195 ) (251 ) (391 ) Recognized actuarial gain (249 ) (519 ) (498 ) (1,038 ) Net Periodic Cost $ 283 $ 23 $ 566 $ 45 |
Other Non-Operating Income (Tab
Other Non-Operating Income (Tables) | 6 Months Ended |
Jun. 30, 2015 | |
Other Nonoperating Income (Expense) [Abstract] | |
Summary of Other Non-Operating Income | A summary of non-operating income is as follows: Three Months Ended Six Months Ended (in thousands) 2015 2014 2015 2014 Additional gain on sale of Classified Ventures $ 4,827 $ — $ 4,827 $ — Foreign currency gain (loss), net 3,608 2,909 (3,219 ) 7,946 Gain on sales of businesses 2,918 — 2,918 — Gain on formation of joint venture — — 5,972 — Gain on Berkshire marketable equity securities exchange — 266,733 — 266,733 Gain on sale of headquarters building — — — 127,670 Losses on sales or write-down of marketable equity securities — (2,259 ) — (3,044 ) Other, net 325 731 75 2,082 Total Other Non-Operating Income $ 11,678 $ 268,114 $ 10,573 $ 401,387 |
Accumulated Other Comprehensi31
Accumulated Other Comprehensive Income (Tables) | 6 Months Ended |
Jun. 30, 2015 | |
Accumulated Other Comprehensive Income (Loss), Net of Tax [Abstract] | |
Summary of Other Comprehensive Income | The other comprehensive loss consists of the following components: Three Months Ended June 30 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 $ 5,249 $ — $ 5,249 $ 1,920 $ — $ 1,920 Adjustment for sales of businesses with foreign operations (484 ) — (484 ) — — — 4,765 — 4,765 1,920 — 1,920 Unrealized (losses) gains on available-for-sale securities: Unrealized (losses) gains for the period, net (11,455 ) 4,582 (6,873 ) 8,667 (3,466 ) 5,201 Reclassification adjustment for realization of (gain) loss on exchange or sale of available-for-sale securities included in net income — — — (266,059 ) 106,424 (159,635 ) (11,455 ) 4,582 (6,873 ) (257,392 ) 102,958 (154,434 ) Pension and other postretirement plans: Amortization of net prior service cost (credit) included in net income 70 (28 ) 42 (102 ) 41 (61 ) Amortization of net actuarial loss (gain) included in net income 628 (251 ) 377 (7,425 ) 2,970 (4,455 ) 698 (279 ) 419 (7,527 ) 3,011 (4,516 ) Cash flow hedge: Gain for the period — — — 239 (95 ) 144 Other Comprehensive Loss $ (5,992 ) $ 4,303 $ (1,689 ) $ (262,760 ) $ 105,874 $ (156,886 ) Six Months Ended June 30 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 $ (6,839 ) $ — $ (6,839 ) $ 2,666 $ — $ 2,666 Adjustment for sales of businesses with foreign operations (525 ) — (525 ) — — — (7,364 ) — (7,364 ) 2,666 — 2,666 Unrealized (losses) gains on available-for-sale securities: Unrealized (losses) gains for the period, net (20,333 ) 8,134 (12,199 ) 36,405 (14,562 ) 21,843 Reclassification adjustment for realization of (gain) loss on exchange, sale or write-down of available-for-sale securities included in net income — — — (265,274 ) 106,110 (159,164 ) (20,333 ) 8,134 (12,199 ) (228,869 ) 91,548 (137,321 ) Pension and other postretirement plans: Amortization of net prior service cost (credit) included in net income 139 (55 ) 84 (204 ) 81 (123 ) Amortization of net actuarial loss (gain) included in net income 1,257 (503 ) 754 (14,607 ) 5,843 (8,764 ) 1,396 (558 ) 838 (14,811 ) 5,924 (8,887 ) Cash flow hedge: Gain for the period 179 (71 ) 108 411 (164 ) 247 Other Comprehensive Loss $ (26,122 ) $ 7,505 $ (18,617 ) $ (240,603 ) $ 97,308 $ (143,295 ) |
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 Foreign Currency Translation Adjustment Unrealized Gain on Available-for- Sale Securities Unrealized Gain on Pensions and Other Postretirement Plans Cash Flow Hedge Accumulated Other Comprehensive Income Balance as of December 31, 2014 $ 8,548 $ 52,130 $ 392,910 $ (108 ) $ 453,480 Other comprehensive (loss) income before reclassifications (6,839 ) (12,199 ) — 29 (19,009 ) Net amount reclassified from accumulated other comprehensive income (525 ) — 838 79 392 Other comprehensive (loss) income, net of tax (7,364 ) (12,199 ) 838 108 (18,617 ) Balance as of June 30, 2015 $ 1,184 $ 39,931 $ 393,748 $ — $ 434,863 |
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 Six Months Ended Affected Line Item in the Condensed Consolidated Statement of Operations (in thousands) 2015 2014 2015 2014 Foreign Currency Translation Adjustments: Adjustment for sales of businesses with foreign operations $ (484 ) $ — $ (525 ) $ — Other income, net Unrealized Gains on Available-for-sale Securities: Realized gain for the period $ — $ (266,059 ) $ — $ (265,274 ) Other income, net — 106,424 — 106,110 (1) — (159,635 ) — (159,164 ) Net of Tax Pension and Other Postretirement Plans: Amortization of net prior service cost (credit) 70 (102 ) 139 (204 ) (2) Amortization of net actuarial loss (gain) 628 (7,425 ) 1,257 (14,607 ) (2) 698 (7,527 ) 1,396 (14,811 ) Before tax (279 ) 3,011 (558 ) 5,924 Provision for Income Taxes 419 (4,516 ) 838 (8,887 ) Net of Tax Cash Flow Hedge — 216 132 428 Interest expense — (86 ) (53 ) (171 ) Provision for Income Taxes — 130 79 257 Net of Tax Total reclassification for the period $ (65 ) $ (164,021 ) $ 392 $ (167,794 ) Net of Tax ____________ (1) Benefits of $0.9 million and $1.2 million were recorded in Provision for Income Taxes related to the realized loss for the three and six months ended June 30, 2014, respectively. The remaining $107.3 million for the three and six months ended June 30, 2014, relates to the reversal of income taxes previously recorded on the unrealized gain of the Company’s investment in Berkshire Hathaway Inc. marketable equity securities as part of the Berkshire exchange transaction (see Note 4). (2) 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) | 6 Months Ended |
Jun. 30, 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 Six Months Ended June 30 June 30 (in thousands) 2015 2014 2015 2014 Operating Revenues Education $ 523,625 $ 542,964 $ 1,024,227 $ 1,065,118 Cable 198,681 200,829 397,404 404,750 Television broadcasting 90,753 88,297 174,317 173,948 Other businesses 66,512 42,351 129,771 67,264 Corporate office — — — — Intersegment elimination — (30 ) — (128 ) $ 879,571 $ 874,411 $ 1,725,719 $ 1,710,952 Income (Loss) From Operations Education $ 15,848 $ 17,637 $ (7,001 ) $ 19,499 Cable 38,445 46,780 77,521 87,942 Television broadcasting 42,014 44,088 80,576 88,474 Other businesses (2,161 ) (6,995 ) (7,323 ) (17,742 ) Corporate office (5,251 ) 50 (8,323 ) 2,256 $ 88,895 $ 101,560 $ 135,450 $ 180,429 Equity in (Losses) Earnings of Affiliates, Net (353 ) 91,503 (757 ) 95,555 Interest Expense, Net (9,293 ) (7,916 ) (17,255 ) (16,137 ) Other Income, Net 11,678 268,114 10,573 401,387 Income from Continuing Operations Before Income Taxes $ 90,927 $ 453,261 $ 128,011 $ 661,234 Depreciation of Property, Plant and Equipment Education $ 21,980 $ 15,372 $ 40,508 $ 31,788 Cable 35,405 33,788 71,753 67,575 Television broadcasting 2,125 2,039 4,234 4,033 Other businesses 1,254 780 2,556 1,300 Corporate office 250 10 508 510 $ 61,014 $ 51,989 $ 119,559 $ 105,206 Amortization of Intangible Assets and Impairment of Long-lived Assets Education $ 8,343 $ 1,798 $ 9,850 $ 3,722 Cable 30 59 61 94 Television broadcasting 63 — 126 — Other businesses 3,117 1,138 6,285 1,896 Corporate office — — — — $ 11,553 $ 2,995 $ 16,322 $ 5,712 Net Pension (Credit) Expense Education $ 3,947 $ 3,566 $ 7,894 $ 7,709 Cable 975 888 1,950 1,752 Television broadcasting 391 358 782 678 Other businesses 186 202 379 366 Corporate office (16,939 ) (22,933 ) (33,877 ) (40,612 ) $ (11,440 ) $ (17,919 ) $ (22,872 ) $ (30,107 ) Asset information for the Company’s business segments are as follows: As of (in thousands) June 30, December 31, Identifiable Assets Education $ 1,576,872 $ 1,781,543 Cable television 1,357,414 1,253,764 Television broadcasting 305,857 305,426 Other businesses 479,049 518,807 Corporate office 1,016,812 524,627 $ 4,736,004 $ 4,384,167 Investments in Marketable Equity Securities 173,460 193,793 Investments in Affiliates 50,898 19,811 Prepaid Pension Cost 1,175,521 1,152,488 Assets Held for Sale 46,057 2,060 Total Assets $ 6,181,940 $ 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 Six Months Ended June 30 June 30 (in thousands) 2015 2014 2015 2014 Operating Revenues Higher education $ 240,717 $ 251,936 $ 478,285 $ 505,715 Test preparation 80,381 81,098 149,607 148,902 Kaplan international 200,703 209,045 392,784 407,892 Kaplan corporate and other 1,959 1,385 3,818 3,399 Intersegment elimination (135 ) (500 ) (267 ) (790 ) $ 523,625 $ 542,964 $ 1,024,227 $ 1,065,118 Income (Loss) from Operations Higher education $ 24,764 $ 20,952 $ 25,357 $ 34,096 Test preparation 7,079 (3,904 ) 2,745 (10,532 ) Kaplan international 17,573 16,898 25,290 26,756 Kaplan corporate and other (33,594 ) (16,401 ) (60,451 ) (30,957 ) Intersegment elimination 26 92 58 136 $ 15,848 $ 17,637 $ (7,001 ) $ 19,499 Depreciation of Property, Plant and Equipment Higher education $ 4,794 $ 7,080 $ 9,622 $ 14,820 Test preparation 2,263 3,072 5,153 6,856 Kaplan international 5,073 4,916 9,727 9,596 Kaplan corporate and other 9,850 304 16,006 516 $ 21,980 $ 15,372 $ 40,508 $ 31,788 Amortization of Intangible Assets $ 1,467 $ 1,798 $ 2,974 $ 3,722 Impairment of Long-lived Assets $ 6,876 $ — $ 6,876 $ — Pension Expense Higher education $ 2,532 $ 2,629 $ 5,064 $ 5,257 Test preparation 775 722 1,550 1,444 Kaplan international 106 89 212 178 Kaplan corporate and other 534 126 1,068 830 $ 3,947 $ 3,566 $ 7,894 $ 7,709 Identifiable assets for the Company’s education division consist of the following: As of (in thousands) June 30, December 31, Identifiable assets Higher education $ 544,306 $ 749,421 Test preparation 155,304 167,055 Kaplan international 836,010 838,148 Kaplan corporate and other 41,252 26,919 $ 1,576,872 $ 1,781,543 |
Organization, Basis of Presen33
Organization, Basis of Presentation and Recent Accounting Pronouncements (Narrative) (Details) $ in Thousands | 6 Months Ended | ||
Jun. 30, 2015USD ($)TelevisionStation | Jun. 30, 2014USD ($) | Feb. 12, 2015campus | |
Percentage of ownership indicating control for consolidation purposes | more than 50% | ||
Net Cash Used in Investing Activities | $ (114,055) | $ (92,900) | |
Net Cash Provided by Operating Activities | $ 77,290 | 207,978 | |
Television Broadcasting [Member] | |||
Number of television broadcast stations | TelevisionStation | 5 | ||
Revision Adjustment [Member] | |||
Net Cash Used in Investing Activities | (19,527) | ||
Net Cash Provided by Operating Activities | $ 19,527 | ||
KHE Campuses [Member] | Higher Education [Member] | |||
Number of nationally accredited ground campuses | campus | 38 |
Organization, Basis of Presen34
Organization, Basis of Presentation and Recent Accounting Pronouncements (Details 1) - USD ($) $ in Thousands | 6 Months Ended | |
Jun. 30, 2015 | Jun. 30, 2014 | |
Error Corrections and Prior Period Adjustments Restatement [Line Items] | ||
Decrease in Accounts Payable and Accrued Liabilities | $ 47,530 | $ (69,916) |
Net Cash Provided by Operating Activities | 77,290 | 207,978 |
Purchases of Property, Plant and Equipment | (100,240) | (112,154) |
Net Cash Used in Investing Activities | $ (114,055) | (92,900) |
Scenario, Previously Reported [Member] | ||
Error Corrections and Prior Period Adjustments Restatement [Line Items] | ||
Decrease in Accounts Payable and Accrued Liabilities | (89,443) | |
Net Cash Provided by Operating Activities | 188,451 | |
Purchases of Property, Plant and Equipment | (92,627) | |
Net Cash Used in Investing Activities | (73,373) | |
Revision Adjustment [Member] | ||
Error Corrections and Prior Period Adjustments Restatement [Line Items] | ||
Decrease in Accounts Payable and Accrued Liabilities | 19,527 | |
Net Cash Provided by Operating Activities | 19,527 | |
Purchases of Property, Plant and Equipment | (19,527) | |
Net Cash Used in Investing Activities | $ (19,527) |
Discontinued Operations (Narrat
Discontinued Operations (Narrative) (Details) $ in Thousands | 1 Months Ended | 3 Months Ended | 6 Months Ended | |||||
Jan. 31, 2015USD ($)school | Jun. 30, 2015USD ($) | Sep. 30, 2014school | Jun. 30, 2014USD ($) | Mar. 31, 2014USD ($) | Dec. 31, 2013USD ($) | Jun. 30, 2015USD ($) | Jun. 30, 2014USD ($) | |
Income Statement, Balance Sheet and Additional Disclosures by Disposal Groups, Including Discontinued Operations [Line Items] | ||||||||
Pre-tax gain (loss) on sale and/or disposition | $ 0 | $ (358,964) | $ 732 | $ (354,227) | ||||
Expenses in discontinued operations | $ 0 | 23,862 | 0 | 37,355 | ||||
Early retirement program expense | $ 0 | $ 4,490 | ||||||
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 | school | 1 | 3 | ||||||
Pre-tax gain (loss) on sale and/or disposition | $ (700) | |||||||
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) | |||||||
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 | |||||||
Berkshire Exchange Transaction [Member] | WPLG [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 | $ 375,000 |
Discontinued Operations (Summar
Discontinued Operations (Summarized Income (Loss) from Discontinued Operations, Net Of Tax) (Details 1) - USD ($) $ in Thousands | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2015 | Jun. 30, 2014 | Jun. 30, 2015 | Jun. 30, 2014 | |
Discontinued Operation, Additional Disclosures [Abstract] | ||||
Operating revenues | $ 0 | $ 25,125 | $ 0 | $ 45,419 |
Operating costs and expenses | 0 | (23,862) | 0 | (37,355) |
Income from discontinued operations | 0 | 1,263 | 0 | 8,064 |
Provision from income taxes | 0 | 1,113 | 0 | 3,139 |
Net Income from Discontinued Operations | 0 | 150 | 0 | 4,925 |
Gain (loss) on sales of discontinued operations | 0 | 358,964 | (732) | 354,227 |
(Benefit) expense from income taxes on sales of discontinued operations | 0 | (16,075) | 52 | (17,769) |
Income (Loss) from Discontinued Operations, Net of Tax | $ 0 | $ 375,189 | $ (784) | $ 376,921 |
Investments (Narrative) (Detail
Investments (Narrative) (Details) - USD ($) | Jun. 30, 2014 | Jun. 30, 2015 | Jun. 30, 2014 | Mar. 31, 2014 | Jun. 30, 2015 | Jun. 30, 2014 | Dec. 31, 2014 | Jul. 03, 2014 | Apr. 01, 2014 |
Schedule of Investments [Line Items] | |||||||||
Commercial paper and money market investments | $ 1,040,200,000 | $ 1,040,200,000 | $ 594,300,000 | ||||||
New investments in marketable equity securities | 0 | $ 0 | |||||||
Proceeds from sales of marketable equity securities | 0 | 5,800,000 | |||||||
(Loss) gain on sales of marketable equity securities | (2,600,000) | ||||||||
Gain on exchange of Berkshire Hathaway shares | 0 | $ (2,259,000) | 0 | (3,044,000) | |||||
Gain on Berkshire marketable equity securities exchange | 0 | 266,733,000 | 0 | 266,733,000 | |||||
Pre-tax gain on equity method investments | (353,000) | 91,503,000 | (757,000) | 95,555,000 | |||||
Company's investments in marketable equity securities | 173,460,000 | 173,460,000 | 193,793,000 | ||||||
Unrealized loss on investment | 66,551,000 | 66,551,000 | $ 86,884,000 | ||||||
Additional gain on sale of Classified Ventures | 4,827,000 | 0 | |||||||
Corinthian Colleges, Inc. [Member] | |||||||||
Schedule of Investments [Line Items] | |||||||||
Impairment write-down on a marketable equity security | $ 500,000 | ||||||||
Classified Ventures LLC [Member] | |||||||||
Schedule of Investments [Line Items] | |||||||||
Additional gain on sale of Classified Ventures | $ 4,827,000 | $ 0 | $ 4,827,000 | $ 0 | |||||
Berkshire Exchange Transaction [Member] | Berkshire Hathaway Inc [Member] | |||||||||
Schedule of Investments [Line Items] | |||||||||
Gain on Berkshire marketable equity securities exchange | $ 266,700,000 | ||||||||
Berkshire Exchange Transaction [Member] | Berkshire Hathaway Inc [Member] | Common Class A [Member] | |||||||||
Schedule of Investments [Line Items] | |||||||||
Number of Shares Exchanged | 2,107 | 2,107 | 2,107 | ||||||
Berkshire Exchange Transaction [Member] | Berkshire Hathaway Inc [Member] | Common Class B [Member] | |||||||||
Schedule of Investments [Line Items] | |||||||||
Number of Shares Exchanged | 1,278 | 1,278 | 1,278 | ||||||
HomeHero [Member] | |||||||||
Schedule of Investments [Line Items] | |||||||||
Equity Method Investment, Ownership Percentage | 20.00% | 20.00% | |||||||
Residential Home Health Illinois [Member] | |||||||||
Schedule of Investments [Line Items] | |||||||||
Equity Method Investment, Ownership Percentage | 40.00% | 40.00% | |||||||
Residential Hospice Illinois [Member] | |||||||||
Schedule of Investments [Line Items] | |||||||||
Equity Method Investment, Ownership Percentage | 42.50% | 42.50% | 42.50% | ||||||
Celtic Healthcare Allegheny Health Network Joint Venture [Member] | |||||||||
Schedule of Investments [Line Items] | |||||||||
Equity Method Investment, Ownership Percentage | 40.00% | 40.00% | |||||||
Classified Ventures' sale of apartments.com [Member] | |||||||||
Schedule of Investments [Line Items] | |||||||||
Cash distribution from equity method investment | $ 95,000,000 | ||||||||
Pre-tax gain on equity method investments | $ 90,900,000 |
Investments (Investments in Mar
Investments (Investments in Marketable Equity Securities) (Details 1) - USD ($) $ in Thousands | Jun. 30, 2015 | Dec. 31, 2014 |
Investments [Abstract] | ||
Total cost | $ 106,909 | $ 106,909 |
Net unrealized gains | 66,551 | 86,884 |
Total Fair Value | $ 173,460 | $ 193,793 |
Acquisitions, Dispositions, E39
Acquisitions, Dispositions, Exchanges and Other Acquisitions, Dispositions, Exchanges and Other (Cable One Spin-Off) (Narrative) (Details) - Cable Spin-Off [Member] | Jul. 01, 2015USD ($) | Jun. 17, 2015USD ($) | Jun. 30, 2015USD ($) | Jun. 30, 2015USD ($)employeeshares |
Exchange And Other [Line Items] | ||||
GHC dividend received from Cable ONE | $ 450,000,000 | |||
Cable ONE, unsecured notes | $ 450,000,000 | $ 450,000,000 | ||
Restricted Stock [Member] | ||||
Exchange And Other [Line Items] | ||||
Number of shares modified | shares | 10,830 | |||
Number of shares with accelerated vesting | shares | 6,324 | |||
Number of shares forfeited | shares | 4,506 | |||
Subsequent Event [Member] | Employee Stock Option [Member] | ||||
Exchange And Other [Line Items] | ||||
Incremental stock compensation from modification | $ 23,500,000 | |||
Cable [Member] | ||||
Exchange And Other [Line Items] | ||||
GHC dividend received from Cable ONE | $ 450,000,000 | |||
Cable [Member] | Restricted Stock [Member] | ||||
Exchange And Other [Line Items] | ||||
Number of employees effected by modification | employee | 21 | |||
Incremental stock compensation from modification | $ 3,700,000 | |||
July 2015 through December 2018 [Member] | Subsequent Event [Member] | Restricted Stock [Member] | ||||
Exchange And Other [Line Items] | ||||
Incremental stock compensation from modification | 3,000,000 | |||
July 2015 through December 2018 [Member] | Subsequent Event [Member] | Employee Stock Option [Member] | ||||
Exchange And Other [Line Items] | ||||
Incremental stock compensation from modification | 4,700,000 | |||
Q3 2015 [Member] | Subsequent Event [Member] | Employee Stock Option [Member] | ||||
Exchange And Other [Line Items] | ||||
Incremental stock compensation from modification | $ 18,800,000 |
Acqusitions, Dispositions, Exch
Acqusitions, Dispositions, Exchanges and Other (Acquisitions) (Narrative) (Details) $ in Millions | 6 Months Ended | ||
Jun. 30, 2015business | Jun. 30, 2014USD ($)business | Jul. 03, 2014 | |
Business Acquisition [Line Items] | |||
Acqusition purchase price | $ | $ 133.5 | ||
Number of businesses acquired | 0 | 6 | |
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, E41
Acquisitions, Dispositions, Exchanges and Other (Dispositions) (Narrative) (Details) $ in Thousands | 1 Months Ended | 3 Months Ended | 6 Months Ended | ||||
Jan. 31, 2015school | Jun. 30, 2015USD ($)business | Sep. 30, 2014school | Jun. 30, 2014USD ($) | Jun. 30, 2015USD ($) | Jun. 30, 2014USD ($) | Feb. 12, 2015campus | |
Income Statement, Balance Sheet and Additional Disclosures by Disposal Groups, Including Discontinued Operations [Line Items] | |||||||
Intangible and other long-lived assets impairment charge | $ 6,876 | $ 7,774 | |||||
Impairment of long-lived assets | $ 6,876 | $ 0 | $ 6,876 | $ 0 | |||
Education [Member] | |||||||
Income Statement, Balance Sheet and Additional Disclosures by Disposal Groups, Including Discontinued Operations [Line Items] | |||||||
Number of businesses disposed | business | 2 | ||||||
Impairment of long-lived assets | $ 6,900 | ||||||
Unfavorable out of period expense adjustment | $ 4,700 | ||||||
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 | campus | 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 | school | 1 | 3 |
Acquisitions, Dispositions, E42
Acquisitions, Dispositions, Exchanges and Other (Exchanges and Other) (Narrative) (Details) - USD ($) $ in Millions | 3 Months Ended | 12 Months Ended | ||
Jun. 30, 2014 | Dec. 31, 2014 | Jun. 30, 2015 | Jan. 31, 2015 | |
Berkshire Exchange Transaction [Member] | ||||
Exchange And Other [Line Items] | ||||
Amount of Cash Exchanged to Berkshire | $ 327.7 | |||
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 Shares Exchanged | 2,107 | |||
Berkshire Exchange Transaction [Member] | Berkshire Hathaway Inc [Member] | Common Class B [Member] | ||||
Exchange And Other [Line Items] | ||||
Number of Shares Exchanged | 1,278 | |||
Berkshire Exchange Transaction [Member] | WPLG [Member] | ||||
Exchange And Other [Line Items] | ||||
After-tax gain (loss) on sale and/or disposition | $ (375) | |||
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, E43
Acquisitions, Dispositions, Exchanges and Other (Significant Component) (Details 1) - USD ($) $ in Thousands | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2015 | Jun. 30, 2014 | Jun. 30, 2015 | Jun. 30, 2014 | |
Disposal Group, Including Discontinued Operation, Income Statement Disclosures [Abstract] | ||||
Disposal Group, Not Discontinued Operation, Revenue | $ 63,036 | $ 67,205 | $ 124,123 | $ 136,263 |
Disposal Group, Not Discontinued Operation, Operating Loss | $ (4,287) | $ (4,531) | $ (7,301) | $ (7,507) |
Acquisitions, Dispositions, E44
Acquisitions, Dispositions, Exchanges and Other (Assets Held for Sale) (Details 2) - USD ($) $ in Thousands | Jun. 30, 2015 | Dec. 31, 2014 |
Disposal Group, Including Discontinued Operation, Balance Sheet Disclosures [Abstract] | ||
Restricted cash | $ 685 | |
Accounts receivable, net | 13,308 | |
Other current assets | 5,006 | |
Current Assets Held for Sale | 18,999 | $ 1,240 |
Property, plant and equipment, net | 12,101 | |
Goodwill, net | 7,526 | |
Indefinite-lived intangible assets | 5,787 | |
Amortized intangible assets, net | 951 | |
Deferred charges and other assets | 693 | |
Noncurrent Assets Held for Sale | 27,058 | 820 |
Accounts payable and accrued liabilities | 11,139 | |
Deferred revenue | 10,001 | |
Current Liabilities Held for Sale | 21,140 | 1,034 |
Other liabilities | 7,849 | |
Noncurrent Liabilities Held for Sale | $ 7,849 | $ 0 |
Goodwill and Other Intangible45
Goodwill and Other Intangible Assets (Intangible Assets) (Narrative) (Details) - USD ($) $ in Thousands | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2015 | Jun. 30, 2014 | Jun. 30, 2015 | Jun. 30, 2014 | |
Amortization of Intangible Assets | ||||
Amortization of intangible assets | $ 4,677 | $ 2,995 | $ 9,446 | $ 5,712 |
Estimated amortization of intangible assets, remainder of 2015 | 9,000 | 9,000 | ||
Estimated amortization of intangible assets, 2016 | 17,000 | 17,000 | ||
Estimated amortization of intangible assets, 2017 | 14,000 | 14,000 | ||
Estimated amortization of intangible assets, 2018 | 13,000 | 13,000 | ||
Estimated amortization of intangible assets, 2019 | 12,000 | 12,000 | ||
Estimated amortization of intangible assets, after 2019 | $ 22,000 | $ 22,000 | ||
Discontinued Operations [Member] | ||||
Amortized Intangible Assets [Line Items] | ||||
Impairment of intangible assets | 7,800 | |||
Kaplan International [Member] | Kaplan China [Member] | Discontinued Operations [Member] | ||||
Amortized Intangible Assets [Line Items] | ||||
Impairment of intangible assets | $ 7,800 |
Goodwill and Other Intangible46
Goodwill and Other Intangible Assets Goodwill and Other Intangible Assets (Goodwill) (Narrative) (Details) - Jun. 30, 2015 - USD ($) $ in Thousands | Total | Total |
Goodwill [Line Items] | ||
Measurement period adjustment | $ 4,570 | |
Other Businesses [Member] | ||
Goodwill [Line Items] | ||
Measurement period adjustment | $ 4,570 | |
Other Businesses [Member] | Residential Healthcare Group Inc [Member] | ||
Goodwill [Line Items] | ||
Measurement period adjustment | $ 4,600 |
Goodwill and Other Intangible47
Goodwill and Other Intangible Assets (Changes in Carrying Amount of Goodwill) (Details 1) - Jun. 30, 2015 - USD ($) $ in Thousands | Total |
Goodwill [Line Items] | |
Goodwill, beginning balance | $ 1,457,051 |
Accumulated impairment losses, beginning balance | (108,341) |
Goodwill, net, beginning balance | 1,348,710 |
Measurement period adjustment | 4,570 |
Dispositions | (9,117) |
Reclassification to assets held for sale | (7,526) |
Foreign currency exchange rate changes | (10,876) |
Goodwill, ending balance | 1,434,102 |
Accumulated impairment losses, ending balance | (108,341) |
Goodwill, net, ending balance | 1,325,761 |
Education [Member] | |
Goodwill [Line Items] | |
Goodwill, beginning balance | 1,057,226 |
Accumulated impairment losses, beginning balance | (102,259) |
Goodwill, net, beginning balance | 954,967 |
Measurement period adjustment | 0 |
Dispositions | (1,298) |
Reclassification to assets held for sale | (7,526) |
Foreign currency exchange rate changes | (10,876) |
Goodwill, ending balance | 1,037,526 |
Accumulated impairment losses, ending balance | (102,259) |
Goodwill, net, ending balance | 935,267 |
Higher Education [Member] | |
Goodwill [Line Items] | |
Goodwill, beginning balance | 409,884 |
Accumulated impairment losses, beginning balance | 0 |
Goodwill, net, beginning balance | 409,884 |
Dispositions | (559) |
Reclassification to assets held for sale | (7,526) |
Foreign currency exchange rate changes | (124) |
Goodwill, ending balance | 401,675 |
Accumulated impairment losses, ending balance | 0 |
Goodwill, net, ending balance | 401,675 |
Test Preparation [Member] | |
Goodwill [Line Items] | |
Goodwill, beginning balance | 166,098 |
Accumulated impairment losses, beginning balance | (102,259) |
Goodwill, net, beginning balance | 63,839 |
Dispositions | 0 |
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 |
Dispositions | (739) |
Reclassification to assets held for sale | 0 |
Foreign currency exchange rate changes | (10,752) |
Goodwill, ending balance | 469,753 |
Accumulated impairment losses, ending balance | 0 |
Goodwill, net, ending balance | 469,753 |
Cable [Member] | |
Goodwill [Line Items] | |
Goodwill, beginning balance | 85,488 |
Accumulated impairment losses, beginning balance | 0 |
Goodwill, net, beginning balance | 85,488 |
Measurement period adjustment | 0 |
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 |
Measurement period adjustment | 0 |
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 |
Measurement period adjustment | 4,570 |
Dispositions | (7,819) |
Reclassification to assets held for sale | 0 |
Foreign currency exchange rate changes | 0 |
Goodwill, ending balance | 142,743 |
Accumulated impairment losses, ending balance | (6,082) |
Goodwill, net, ending balance | $ 136,661 |
Goodwill and Other Intangible48
Goodwill and Other Intangible Assets (Other Intangible Assets) (Details 2) - USD ($) $ in Thousands | 6 Months Ended | 12 Months Ended |
Jun. 30, 2015 | Dec. 31, 2014 | |
Amortized Intangible Assets [Line Items] | ||
Gross Carrying Amount | $ 173,429 | $ 182,107 |
Accumulated Amortization | 86,609 | 85,160 |
Net Carrying Amount | 86,820 | 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 | 1,681 | 2,500 |
Accumulated Amortization | 1,151 | 1,590 |
Net Carrying Amount | $ 530 | $ 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 | $ 101,259 | $ 104,685 |
Accumulated Amortization | 49,320 | 47,539 |
Net Carrying Amount | $ 51,939 | $ 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 | 9,204 | 8,827 |
Net Carrying Amount | $ 1,314 | $ 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 | $ 53,655 | $ 55,452 |
Accumulated Amortization | 21,742 | 19,724 |
Net Carrying Amount | $ 31,913 | $ 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 | $ 6,316 | $ 8,969 |
Accumulated Amortization | 5,192 | 7,480 |
Net Carrying Amount | $ 1,124 | $ 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) | Jun. 30, 2015USD ($) | Jun. 29, 2015USD ($) | Jun. 17, 2015USD ($) | Mar. 09, 2015AUD | Jun. 30, 2015USD ($) | Jun. 30, 2015USD ($) | Jun. 30, 2014USD ($) | Jun. 30, 2015USD ($) | Jun. 30, 2014USD ($) | Dec. 31, 2014USD ($) | Jun. 17, 2015AUD | Jan. 31, 2009 |
Debt Instrument [Line Items] | ||||||||||||
Debt Instrument, Interest Rate, Stated Percentage | 7.25% | 7.25% | 7.25% | 7.25% | ||||||||
Average borrowings outstanding | $ 454,400,000 | $ 452,500,000 | $ 450,200,000 | $ 451,800,000 | ||||||||
Weighted average interest rate of borrowings | 6.80% | 7.00% | 7.00% | 7.00% | ||||||||
Net interest expense incurred | $ 9,300,000 | $ 7,900,000 | $ 17,300,000 | $ 16,100,000 | ||||||||
Cable Spin-Off [Member] | ||||||||||||
Debt Instrument [Line Items] | ||||||||||||
Debt Instrument, Face Amount | $ 450,000,000 | $ 450,000,000 | 450,000,000 | 450,000,000 | ||||||||
GHC dividend received from Cable ONE | 450,000,000 | |||||||||||
7.25% Unsecured Notes due February 1, 2019 [Member] | ||||||||||||
Debt Instrument [Line Items] | ||||||||||||
Debt Instrument, Interest Rate, Stated Percentage | 7.25% | |||||||||||
Fair value of debt instrument | 447,000,000 | 447,000,000 | 447,000,000 | 447,000,000 | $ 450,300,000 | |||||||
Carrying value of debt instrument | 398,515,000 | 398,515,000 | 398,515,000 | 398,515,000 | 398,308,000 | |||||||
Four-Year Revolving Credit Agreement Dated, June 17, 2011 [Member] | ||||||||||||
Debt Instrument [Line Items] | ||||||||||||
Borrowings outstanding | $ 0 | |||||||||||
AUD $50 million portion of Revolver [Member] | ||||||||||||
Debt Instrument [Line Items] | ||||||||||||
Termination of credit agreement | AUD | AUD 50,000,000 | |||||||||||
Borrowings outstanding | 0 | 0 | 0 | $ 0 | $ 40,927,000 | |||||||
Repayments of Line of Credit | AUD | AUD (50,000,000) | |||||||||||
USD $450 million portion of Revolver [Member] | ||||||||||||
Debt Instrument [Line Items] | ||||||||||||
Termination of credit agreement | 450,000,000 | |||||||||||
Interest Rate Swap [Member] | ||||||||||||
Debt Instrument [Line Items] | ||||||||||||
Notional amount of derivative that matured | AUD | AUD 50,000,000 | |||||||||||
Other Indebtedness [Member] | ||||||||||||
Debt Instrument [Line Items] | ||||||||||||
Minimum interest rate | 3.80% | 0.00% | ||||||||||
Maximum interest rate | 6.00% | 6.00% | ||||||||||
Debt Instrument, Maturity year, start | Jul. 1, 2015 | Jan. 1, 2015 | ||||||||||
Debt Instrument, Maturity year, end | Dec. 31, 2017 | Dec. 31, 2017 | ||||||||||
Five-Year Revolving Credit Agreement dated June 29, 2015 [Member] | ||||||||||||
Debt Instrument [Line Items] | ||||||||||||
Line of Credit Facility, Current Borrowing Capacity | $ 200,000,000 | |||||||||||
Debt Instrument, Covenant, Leverage Ratio, Maximum | 3.5 | |||||||||||
Debt Instrument, Covenant, Interest Coverage Ratio, Minimum | 3.5 | |||||||||||
Five-Year Revolving Credit Agreement dated June 29, 2015 [Member] | Minimum [Member] | ||||||||||||
Debt Instrument [Line Items] | ||||||||||||
Line of Credit Facility, Unused Capacity, Commitment Fee Percentage | 0.15% | |||||||||||
Five-Year Revolving Credit Agreement dated June 29, 2015 [Member] | Maximum [Member] | ||||||||||||
Debt Instrument [Line Items] | ||||||||||||
Line of Credit Facility, Unused Capacity, Commitment Fee Percentage | 0.25% | |||||||||||
Five-Year Revolving Credit Agreement dated June 29, 2015 [Member] | Federal Funds Rate [Member] | ||||||||||||
Debt Instrument [Line Items] | ||||||||||||
Debt Instrument, Basis Spread on Variable Rate | 0.50% | |||||||||||
Five-Year Revolving Credit Agreement dated June 29, 2015 [Member] | Eurodollar [Member] | ||||||||||||
Debt Instrument [Line Items] | ||||||||||||
Debt Instrument, Basis Spread on Variable Rate | 1.00% | |||||||||||
Cable [Member] | Cable Spin-Off [Member] | ||||||||||||
Debt Instrument [Line Items] | ||||||||||||
GHC dividend received from Cable ONE | 450,000,000 | |||||||||||
Cable [Member] | 5.75% Unsecured Notes due June 15, 2022 [Member] | Cable Spin-Off [Member] | ||||||||||||
Debt Instrument [Line Items] | ||||||||||||
Debt Instrument, Face Amount | $ 450,000,000 | |||||||||||
Debt Instrument, Interest Rate, Stated Percentage | 5.75% | 5.75% | ||||||||||
Redemption price percentage | 101.00% | |||||||||||
Fair value of debt instrument | 450,000,000 | 450,000,000 | 450,000,000 | $ 450,000,000 | ||||||||
Carrying value of debt instrument | $ 450,000,000 | 450,000,000 | 450,000,000 | 450,000,000 | $ 0 | |||||||
Cable [Member] | Senior Credit Facilities [Member] | Cable Spin-Off [Member] | London Interbank Offered Rate (LIBOR) [Member] | ||||||||||||
Debt Instrument [Line Items] | ||||||||||||
Debt Instrument, Basis Spread on Variable Rate | 1.50% | |||||||||||
Cable [Member] | Senior Credit Facilities [Member] | Cable Spin-Off [Member] | London Interbank Offered Rate (LIBOR) [Member] | Minimum [Member] | ||||||||||||
Debt Instrument [Line Items] | ||||||||||||
Debt Instrument, Basis Spread on Variable Rate | 1.50% | |||||||||||
Cable [Member] | Senior Credit Facilities [Member] | Cable Spin-Off [Member] | London Interbank Offered Rate (LIBOR) [Member] | Maximum [Member] | ||||||||||||
Debt Instrument [Line Items] | ||||||||||||
Debt Instrument, Basis Spread on Variable Rate | 2.25% | |||||||||||
Cable [Member] | Senior Credit Facilities [Member] | Cable Spin-Off [Member] | Base Rate [Member] | ||||||||||||
Debt Instrument [Line Items] | ||||||||||||
Debt Instrument, Basis Spread on Variable Rate | 0.50% | |||||||||||
Cable [Member] | Senior Credit Facilities [Member] | Cable Spin-Off [Member] | Base Rate [Member] | Minimum [Member] | ||||||||||||
Debt Instrument [Line Items] | ||||||||||||
Debt Instrument, Basis Spread on Variable Rate | 0.50% | |||||||||||
Cable [Member] | Senior Credit Facilities [Member] | Cable Spin-Off [Member] | Base Rate [Member] | Maximum [Member] | ||||||||||||
Debt Instrument [Line Items] | ||||||||||||
Debt Instrument, Basis Spread on Variable Rate | 1.25% | |||||||||||
Cable [Member] | Five Year Revolving Credit Agreement dated June 30, 2015[Member] | Cable Spin-Off [Member] | ||||||||||||
Debt Instrument [Line Items] | ||||||||||||
Line of Credit Facility, Current Borrowing Capacity | $ 200,000,000 | 200,000,000 | 200,000,000 | 200,000,000 | ||||||||
Cable [Member] | Five Year Revolving Credit Agreement dated June 30, 2015[Member] | Cable Spin-Off [Member] | Minimum [Member] | ||||||||||||
Debt Instrument [Line Items] | ||||||||||||
Line of Credit Facility, Unused Capacity, Commitment Fee Percentage | 0.25% | |||||||||||
Cable [Member] | Five Year Revolving Credit Agreement dated June 30, 2015[Member] | Cable Spin-Off [Member] | Maximum [Member] | ||||||||||||
Debt Instrument [Line Items] | ||||||||||||
Line of Credit Facility, Unused Capacity, Commitment Fee Percentage | 0.40% | |||||||||||
Cable [Member] | Term Loan [Member] | Cable Spin-Off [Member] | ||||||||||||
Debt Instrument [Line Items] | ||||||||||||
Debt Instrument, Face Amount | $ 100,000,000 | 100,000,000 | 100,000,000 | 100,000,000 | ||||||||
Fair value of debt instrument | 100,000,000 | 100,000,000 | 100,000,000 | 100,000,000 | ||||||||
Carrying value of debt instrument | $ 100,000,000 | $ 100,000,000 | $ 100,000,000 | $ 100,000,000 | $ 0 | |||||||
Cable [Member] | Term Loan [Member] | Cable Spin-Off [Member] | First year after funding [Member] | ||||||||||||
Debt Instrument [Line Items] | ||||||||||||
Debt Instrument, Redemption Price, Percentage of Principal Amount Redeemed | 2.50% | |||||||||||
Cable [Member] | Term Loan [Member] | Cable Spin-Off [Member] | Second year after funding [Member] | ||||||||||||
Debt Instrument [Line Items] | ||||||||||||
Debt Instrument, Redemption Price, Percentage of Principal Amount Redeemed | 5.00% | |||||||||||
Cable [Member] | Term Loan [Member] | Cable Spin-Off [Member] | Third year after funding [Member] | ||||||||||||
Debt Instrument [Line Items] | ||||||||||||
Debt Instrument, Redemption Price, Percentage of Principal Amount Redeemed | 7.50% | |||||||||||
Cable [Member] | Term Loan [Member] | Cable Spin-Off [Member] | Fourth year after funding [Member] | ||||||||||||
Debt Instrument [Line Items] | ||||||||||||
Debt Instrument, Redemption Price, Percentage of Principal Amount Redeemed | 10.00% | |||||||||||
Cable [Member] | Term Loan [Member] | Cable Spin-Off [Member] | Fifth year after funding [Member] | ||||||||||||
Debt Instrument [Line Items] | ||||||||||||
Debt Instrument, Redemption Price, Percentage of Principal Amount Redeemed | 15.00% |
Debt (Details 1)
Debt (Details 1) - USD ($) | Jun. 30, 2015 | Jun. 17, 2015 | Dec. 31, 2014 | Jan. 31, 2009 |
Debt Instrument [Line Items] | ||||
Other indebtedness | $ 6,241,000 | $ 6,685,000 | ||
Total Debt | 954,756,000 | 445,920,000 | ||
Less: current portion | (7,537,000) | (46,375,000) | ||
Total Long-Term Debt | $ 947,219,000 | 399,545,000 | ||
Debt Instrument, Interest Rate, Stated Percentage | 7.25% | |||
7.25% Unsecured Notes due February 1, 2019 [Member] | ||||
Debt Instrument [Line Items] | ||||
Unsecured notes | $ 398,515,000 | 398,308,000 | ||
Debt Instrument, Interest Rate, Stated Percentage | 7.25% | |||
Four Year Revolving Credit Agreement Dated June Seventeenth Two Thousand Eleven [Member] | ||||
Debt Instrument [Line Items] | ||||
Revolving credit borrowing | $ 0 | |||
AUD [Member] | ||||
Debt Instrument [Line Items] | ||||
Revolving credit borrowing | 0 | 40,927,000 | ||
Cable Spin-Off [Member] | 5.75% Unsecured Notes due June 15, 2022 [Member] | Cable [Member] | ||||
Debt Instrument [Line Items] | ||||
Unsecured notes | 450,000,000 | 0 | ||
Debt Instrument, Interest Rate, Stated Percentage | 5.75% | |||
Cable Spin-Off [Member] | Term Loan [Member] | Cable [Member] | ||||
Debt Instrument [Line Items] | ||||
Secured Debt | $ 100,000,000 | $ 0 |
Fair Value Measurements Fair Va
Fair Value Measurements Fair Value Measurements (Narrative) (Details) - USD ($) $ in Thousands | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2015 | Jun. 30, 2014 | Jun. 30, 2015 | Jun. 30, 2014 | |
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||||
Impairment of long-lived assets | $ 6,876 | $ 0 | $ 6,876 | $ 0 |
Discontinued Operations [Member] | ||||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||||
Impairment of intangible assets | $ 7,800 |
Fair Value Measurements (Detail
Fair Value Measurements (Details 1) - USD ($) $ in Thousands | Jun. 30, 2015 | Dec. 31, 2014 | |
Assets | |||
Marketable equity securities | $ 173,460 | $ 193,793 | |
7.25% Unsecured Notes due February 1, 2019 [Member] | |||
Liabilities: | |||
Debt instrument | 447,000 | 450,300 | |
Fair Value, Measurements, Recurring [Member] | |||
Assets | |||
Money market investments | [1] | 690,452 | 368,131 |
Commercial paper | [2] | 349,794 | 226,197 |
Marketable equity securities | [3] | 173,460 | 193,793 |
Other current investments | [4] | 27,390 | 32,959 |
Total Financial Assets | 1,241,096 | 821,080 | |
Liabilities: | |||
Deferred compensation plan liabilities | [5] | 69,280 | 70,661 |
Interest rate swap | [6] | 179 | |
Total Financial Liabilities | 1,066,280 | 562,111 | |
Fair Value, Measurements, Recurring [Member] | 7.25% Unsecured Notes due February 1, 2019 [Member] | |||
Liabilities: | |||
Debt instrument | [7] | 447,000 | 450,344 |
Fair Value, Measurements, Recurring [Member] | AUD $50 million portion of Revolver [Member] | |||
Liabilities: | |||
AUD Revolving credit borrowing | [7] | 40,927 | |
Fair Value, Measurements, Recurring [Member] | Level 1 [Member] | |||
Assets | |||
Money market investments | [1] | 0 | 0 |
Commercial paper | [2] | 349,794 | 226,197 |
Marketable equity securities | [3] | 173,460 | 193,793 |
Other current investments | [4] | 11,311 | 11,788 |
Total Financial Assets | 534,565 | 431,778 | |
Liabilities: | |||
Deferred compensation plan liabilities | [5] | 0 | 0 |
Interest rate swap | [6] | 0 | |
Total Financial Liabilities | 0 | 0 | |
Fair Value, Measurements, Recurring [Member] | Level 1 [Member] | 7.25% Unsecured Notes due February 1, 2019 [Member] | |||
Liabilities: | |||
Debt instrument | [7] | 0 | 0 |
Fair Value, Measurements, Recurring [Member] | Level 1 [Member] | AUD $50 million portion of Revolver [Member] | |||
Liabilities: | |||
AUD Revolving credit borrowing | [7] | 0 | |
Fair Value, Measurements, Recurring [Member] | Level 2 [Member] | |||
Assets | |||
Money market investments | [1] | 690,452 | 368,131 |
Commercial paper | [2] | 0 | 0 |
Marketable equity securities | [3] | 0 | 0 |
Other current investments | [4] | 16,079 | 21,171 |
Total Financial Assets | 706,531 | 389,302 | |
Liabilities: | |||
Deferred compensation plan liabilities | [5] | 69,280 | 70,661 |
Interest rate swap | [6] | 179 | |
Total Financial Liabilities | 1,066,280 | 562,111 | |
Fair Value, Measurements, Recurring [Member] | Level 2 [Member] | 7.25% Unsecured Notes due February 1, 2019 [Member] | |||
Liabilities: | |||
Debt instrument | [7] | 447,000 | 450,344 |
Fair Value, Measurements, Recurring [Member] | Level 2 [Member] | AUD $50 million portion of Revolver [Member] | |||
Liabilities: | |||
AUD Revolving credit borrowing | [7] | $ 40,927 | |
Cable [Member] | 5.75% Unsecured Notes due June 15, 2022 [Member] | Cable Spin-Off [Member] | |||
Liabilities: | |||
Debt instrument | 450,000 | ||
Cable [Member] | Term Loan [Member] | Cable Spin-Off [Member] | |||
Liabilities: | |||
Debt instrument | 100,000 | ||
Cable [Member] | Fair Value, Measurements, Recurring [Member] | 5.75% Unsecured Notes due June 15, 2022 [Member] | Cable Spin-Off [Member] | |||
Liabilities: | |||
Debt instrument | [7] | 450,000 | |
Cable [Member] | Fair Value, Measurements, Recurring [Member] | Term Loan [Member] | Cable Spin-Off [Member] | |||
Liabilities: | |||
Debt instrument | [7] | 100,000 | |
Cable [Member] | Fair Value, Measurements, Recurring [Member] | Level 1 [Member] | 5.75% Unsecured Notes due June 15, 2022 [Member] | Cable Spin-Off [Member] | |||
Liabilities: | |||
Debt instrument | [7] | 0 | |
Cable [Member] | Fair Value, Measurements, Recurring [Member] | Level 1 [Member] | Term Loan [Member] | Cable Spin-Off [Member] | |||
Liabilities: | |||
Debt instrument | [7] | 0 | |
Cable [Member] | Fair Value, Measurements, Recurring [Member] | Level 2 [Member] | 5.75% Unsecured Notes due June 15, 2022 [Member] | Cable Spin-Off [Member] | |||
Liabilities: | |||
Debt instrument | [7] | 450,000 | |
Cable [Member] | Fair Value, Measurements, Recurring [Member] | Level 2 [Member] | Term Loan [Member] | Cable Spin-Off [Member] | |||
Liabilities: | |||
Debt instrument | [7] | $ 100,000 | |
[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)
Earnings Per Share (Narrative) (Details) - $ / shares | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2015 | Jun. 30, 2014 | Jun. 30, 2015 | Jun. 30, 2014 | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||
Dividends declared per common share | $ 2.65 | $ 2.55 | $ 7.95 | $ 7.65 |
Stock Option Plan [Member] | ||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||
Antidilutive securities, shares | 50,000 | 5,000 | 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 | 5,850 | 5,550 |
Earnings Per Share (Details 1)
Earnings Per Share (Details 1) - USD ($) $ / shares in Units, shares in Thousands, $ in Thousands | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2015 | Jun. 30, 2014 | Jun. 30, 2015 | Jun. 30, 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 | $ 57,782 | $ 374,948 | $ 79,172 | $ 505,314 |
Less: Dividends-common stock outstanding and unvested restricted shares | (15,484) | (14,819) | (46,354) | (52,494) |
Undistributed earnings | $ 42,298 | $ 360,129 | $ 32,818 | $ 452,820 |
Percent allocated to common stockholders | 98.18% | 97.88% | 98.18% | 97.88% |
Undistributed Earnings Allocated To Common Stockholders | $ 41,527 | $ 352,507 | $ 32,220 | $ 443,236 |
Add: Dividends-common stock outstanding | 15,201 | 14,506 | 45,506 | 51,556 |
Numerator for basic earnings per share | 56,728 | 367,013 | 77,726 | 494,792 |
Add: Additional undistributed earnings due to dilutive stock options | 4 | 31 | 3 | 40 |
Numerator for diluted earnings per share | $ 56,732 | $ 367,044 | $ 77,729 | $ 494,832 |
Weighted average shares outstanding | 5,720 | 7,284 | 5,712 | 7,280 |
Denominator for diluted earnings per share | 5,750 | 7,308 | 5,744 | 7,304 |
Graham Holdings Company Common Stockholders: | ||||
Basic income per common share from continuing operations in dollars per share | $ 9.92 | $ 50.39 | $ 13.61 | $ 67.97 |
Diluted income per common share from continuing operations in dollars per share | $ 9.87 | $ 50.22 | $ 13.53 | $ 67.74 |
Stock Option Plan [Member] | ||||
Schedule of Earnings Per Share, Basic and Diluted, Including Two Class Method [Line Items] | ||||
Add: Effect of dilutive stock options | 30 | 24 | 32 | 24 |
Earnings Per Share Earnings Per
Earnings Per Share Earnings Per Share (Details 2) - shares shares in Thousands | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2015 | Jun. 30, 2014 | Jun. 30, 2015 | Jun. 30, 2014 | |
Antidilutive Weighted Average Restricted Stock [Line Items] | ||||
Weighted average restricted stock | 55 | 55 | 54 | 57 |
Pension and Postretirement Pl56
Pension and Postretirement Plans (Narrative) (Details) | 3 Months Ended | 6 Months Ended | ||||
Jun. 30, 2015USD ($)campusInvestmentcompanies | Jun. 30, 2014USD ($) | Mar. 31, 2014USD ($) | Jun. 30, 2015USD ($)campusInvestmentcompanies | Jun. 30, 2014USD ($) | Dec. 31, 2014USD ($)countryInvestment | |
Retirement Benefits Disclosure [Line Items] | ||||||
Net Periodic Cost (Benefit) | $ (22,872,000) | $ (34,433,000) | ||||
Total Cost (Benefit) | $ (11,440,000) | $ (17,919,000) | (22,872,000) | (30,107,000) | ||
Early retirement program expense | 0 | 4,490,000 | ||||
Defined Benefit Pension Plan [Member] | ||||||
Retirement Benefits Disclosure [Line Items] | ||||||
Net Periodic Cost (Benefit) | (11,440,000) | (17,833,000) | (22,872,000) | (34,433,000) | ||
Total Cost (Benefit) | (11,440,000) | (17,833,000) | (22,872,000) | (29,943,000) | ||
Early retirement program expense | $ 0 | 0 | $ 0 | 4,490,000 | ||
Number of investment companies actively managing plan assets | companies | 2 | 2 | ||||
Amount of plan assets managed internally by company | $ 0 | |||||
Percentage of total plan assets | 100.00% | 100.00% | 100.00% | |||
Defined Benefit Pension Plan [Member] | Discontinued Operations [Member] | ||||||
Retirement Benefits Disclosure [Line Items] | ||||||
Net Periodic Cost (Benefit) | 100,000 | 200,000 | ||||
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) | $ 2,635,000 | 1,845,000 | $ 5,271,000 | 3,690,000 | ||
Supplemental Executive Retirement Plan (SERP) [Member] | Discontinued Operations [Member] | ||||||
Retirement Benefits Disclosure [Line Items] | ||||||
Net Periodic Cost (Benefit) | 100,000 | 200,000 | ||||
Other Postretirement Plans [Member] | ||||||
Retirement Benefits Disclosure [Line Items] | ||||||
Net Periodic Cost (Benefit) | 283,000 | $ 23,000 | $ 566,000 | $ 45,000 | ||
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 | $ 723,100,000 | $ 723,100,000 | $ 730,600,000 | |||
Percentage of total plan assets | 27.00% | 27.00% | 30.00% | |||
Number of investments the company's pension plan held which individually exceed 10% of total plan assets | Investment | 1 | 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 | $ 725,000,000 | $ 725,000,000 | $ 468,000,000 | |||
Percentage of total plan assets | 27.00% | 27.00% | 19.00% | |||
Number of foreign countries for which the companys pension plan holds investments that exceed 10% of total plan assets | 1 | 1 | 1 |
Pension and Postretirement Pl57
Pension and Postretirement Plans (Total Benefit/Cost) (Details 5) - USD ($) $ in Thousands | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2015 | Jun. 30, 2014 | Jun. 30, 2015 | Jun. 30, 2014 | |
Defined Benefit Plan Disclosure [Line Items] | ||||
Net Periodic Cost (Benefit) | $ (22,872) | $ (34,433) | ||
Early retirement program expense | 0 | 4,490 | ||
Total Cost (Benefit) | $ (11,440) | $ (17,919) | (22,872) | (30,107) |
Defined Benefit Plan, Amounts Recognized in Other Comprehensive Income (Loss) [Abstract] | ||||
Amortization of prior service credit (cost) | 70 | (102) | 139 | (204) |
Total Recognized in Other Comprehensive Income (Before Tax Effects) | (698) | 7,527 | (1,396) | 14,811 |
Defined Benefit Pension Plan [Member] | ||||
Defined Benefit Plan Disclosure [Line Items] | ||||
Service cost | 7,251 | 6,976 | 14,503 | 14,513 |
Interest cost | 12,781 | 12,894 | 25,561 | 25,976 |
Expected return on assets | (31,553) | (30,504) | (63,098) | (60,767) |
Amortization of prior service cost (credit) | 81 | 82 | 162 | 164 |
Recognized actuarial loss (gain) | 0 | (7,281) | 0 | (14,319) |
Net Periodic Cost (Benefit) | (11,440) | (17,833) | (22,872) | (34,433) |
Early retirement program expense | 0 | 0 | 0 | 4,490 |
Total Cost (Benefit) | (11,440) | (17,833) | (22,872) | (29,943) |
Supplemental Executive Retirement Plan (SERP) [Member] | ||||
Defined Benefit Plan Disclosure [Line Items] | ||||
Service cost | 509 | 373 | 1,018 | 746 |
Interest cost | 1,135 | 1,086 | 2,270 | 2,171 |
Amortization of prior service cost (credit) | 114 | 11 | 228 | 23 |
Recognized actuarial loss (gain) | 877 | 375 | 1,755 | 750 |
Net Periodic Cost (Benefit) | 2,635 | 1,845 | 5,271 | 3,690 |
Other Postretirement Plans [Member] | ||||
Defined Benefit Plan Disclosure [Line Items] | ||||
Service cost | 333 | 375 | 666 | 750 |
Interest cost | 324 | 362 | 649 | 724 |
Amortization of prior service cost (credit) | (125) | (195) | (251) | (391) |
Recognized actuarial loss (gain) | (249) | (519) | (498) | (1,038) |
Net Periodic Cost (Benefit) | $ 283 | $ 23 | $ 566 | $ 45 |
Pension and Postretirement Pl58
Pension and Postretirement Plans (Asset Allocation) (Details 9) - Defined Benefit Pension Plans [Member] | Jun. 30, 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) | 49.00% | 59.00% |
UNITED STATES | U.S. fixed income [Member] | ||
Defined Benefit Plan Disclosure [Line Items] | ||
Defined Benefit Plan Assets Allocation (Percent) | 16.00% | 13.00% |
International [Member] | International equities [Member] | ||
Defined Benefit Plan Disclosure [Line Items] | ||
Defined Benefit Plan Assets Allocation (Percent) | 35.00% | 28.00% |
Other Non-Operating Income (Nar
Other Non-Operating Income (Narrative) (Details) $ in Thousands | Jun. 30, 2014USD ($)shares | Mar. 27, 2014USD ($) | Jan. 31, 2015USD ($) | Jun. 30, 2015USD ($)business | Jun. 30, 2014USD ($)shares | Jun. 30, 2015USD ($) | Jun. 30, 2014USD ($)shares |
Schedule of Non-Operating Income (Expense) [Line Items] | |||||||
Gain on sales of businesses | $ 2,918 | $ 0 | $ 2,918 | $ 0 | |||
Gain on Celtic joint venture transaction | 0 | 0 | 5,972 | 0 | |||
Gain on Berkshire marketable equity securities exchange | 0 | 266,733 | 0 | 266,733 | |||
Proceeds from sale of building | $ 158,000 | ||||||
Gain on sale of headquarters building | $ 127,700 | 0 | $ 0 | $ 0 | $ 127,670 | ||
Celtic Healthcare Inc [Member] | Celtic Healthcare Allegheny Health Network Joint Venture [Member] | |||||||
Schedule of Non-Operating Income (Expense) [Line Items] | |||||||
Gain on Celtic joint venture transaction | $ 6,000 | ||||||
Berkshire Hathaway Inc [Member] | Berkshire Exchange Transaction [Member] | |||||||
Schedule of Non-Operating Income (Expense) [Line Items] | |||||||
Gain on Berkshire marketable equity securities exchange | $ 266,700 | ||||||
Berkshire Hathaway Inc [Member] | Common Class A [Member] | Berkshire Exchange Transaction [Member] | |||||||
Schedule of Non-Operating Income (Expense) [Line Items] | |||||||
Number of Shares Exchanged | shares | 2,107 | 2,107 | 2,107 | ||||
Berkshire Hathaway Inc [Member] | Common Class B [Member] | Berkshire Exchange Transaction [Member] | |||||||
Schedule of Non-Operating Income (Expense) [Line Items] | |||||||
Number of Shares Exchanged | shares | 1,278 | 1,278 | 1,278 | ||||
Classified Ventures LLC [Member] | |||||||
Schedule of Non-Operating Income (Expense) [Line Items] | |||||||
Favorable out of period adjustment | $ 4,800 | ||||||
Education [Member] | |||||||
Schedule of Non-Operating Income (Expense) [Line Items] | |||||||
Number of businesses disposed | business | 2 | ||||||
Favorable out of period adjustment | $ (4,700) | ||||||
Celtic Healthcare Allegheny Health Network Joint Venture [Member] | |||||||
Schedule of Non-Operating Income (Expense) [Line Items] | |||||||
Equity Method Investment, Ownership Percentage | 40.00% | 40.00% | |||||
Celtic Healthcare Allegheny Health Network Joint Venture [Member] | Celtic Healthcare Inc [Member] | |||||||
Schedule of Non-Operating Income (Expense) [Line Items] | |||||||
Equity Method Investment, Ownership Percentage | 40.00% |
Other Non-Operating Income (Det
Other Non-Operating Income (Details 1) - USD ($) $ in Thousands | Jun. 30, 2014 | Mar. 27, 2014 | Jun. 30, 2015 | Jun. 30, 2014 | Jun. 30, 2015 | Jun. 30, 2014 |
Schedule of Non-Operating Income (Expense) [Line Items] | ||||||
Additional gain on sale of Classified Ventures | $ 4,827 | $ 0 | ||||
Foreign currency (loss) gain, net | $ 3,608 | $ 2,909 | (3,219) | 7,946 | ||
Gain on sales of businesses | 2,918 | 0 | 2,918 | 0 | ||
Gain on formation of joint venture | 0 | 0 | 5,972 | 0 | ||
Gain on Berkshire marketable equity securities exchange | 0 | 266,733 | 0 | 266,733 | ||
Gain on sale of headquarters building | $ 127,700 | 0 | 0 | 0 | 127,670 | |
Losses on sales or write-down of marketable equity securities | 0 | (2,259) | 0 | (3,044) | ||
Other, net | 325 | 731 | 75 | 2,082 | ||
Total Other Non-Operating Income | 11,678 | 268,114 | 10,573 | 401,387 | ||
Classified Ventures LLC [Member] | ||||||
Schedule of Non-Operating Income (Expense) [Line Items] | ||||||
Additional gain on sale of Classified Ventures | $ 4,827 | $ 0 | $ 4,827 | $ 0 | ||
Berkshire Exchange Transaction [Member] | Berkshire Hathaway Inc [Member] | ||||||
Schedule of Non-Operating Income (Expense) [Line Items] | ||||||
Gain on Berkshire marketable equity securities exchange | $ 266,700 |
Accumulated Other Comprehensi61
Accumulated Other Comprehensive Income (Components of OCI) (Details 1) - USD ($) $ in Thousands | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2015 | Jun. 30, 2014 | Jun. 30, 2015 | Jun. 30, 2014 | |
Foreign currency translation adjustments: | ||||
Translation adjustments arising during the period, before tax | $ 5,249 | $ 1,920 | $ (6,839) | $ 2,666 |
Translation adjustments arising during the period, income tax | 0 | 0 | 0 | 0 |
Translation adjustments arising during the period, after tax | 5,249 | 1,920 | (6,839) | 2,666 |
Adjustment for sales of businesses with foreign operations, before tax | (484) | 0 | (525) | 0 |
Adjustment for sales of businesses with foreign operations, income tax | 0 | 0 | 0 | 0 |
Adjustment for sales of businesses with foreign operations, after tax | (484) | 0 | (525) | 0 |
Total foreign currency translation adjustments, before tax | 4,765 | 1,920 | (7,364) | 2,666 |
Total foreign currency translation adjustments, income tax | 0 | 0 | 0 | 0 |
Total foreign currency translation adjustments, after tax | 4,765 | 1,920 | (7,364) | 2,666 |
Unrealized (losses) gains on available-for-sale securities: | ||||
Unrealized (losses) gains for the period, before tax | (11,455) | 8,667 | (20,333) | 36,405 |
Unrealized (losses) gains for the period, tax | 4,582 | (3,466) | 8,134 | (14,562) |
Unrealized (losses) gains for the period, after tax | (6,873) | 5,201 | (12,199) | 21,843 |
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 | (266,059) | 0 | (265,274) |
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 | 106,424 | 0 | 106,110 |
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 | (159,635) | 0 | (159,164) |
Total unrealized (losses) gains on available-for-sale securities, before tax | (11,455) | (257,392) | (20,333) | (228,869) |
Total unrealized (losses) gains on available-for-sale securities, income tax | 4,582 | 102,958 | 8,134 | 91,548 |
Total unrealized (losses) gains on available-for-sale securities, after tax | (6,873) | (154,434) | (12,199) | (137,321) |
Pension and other postretirement plans: | ||||
Amortization of net prior service cost (credit) included in net income | 70 | (102) | 139 | (204) |
Amortization of net prior service cost (credit) included in net income, income tax | (28) | 41 | (55) | 81 |
Amortization of net prior service cost (credit) included in net income, after tax | 42 | (61) | 84 | (123) |
Amortization of net actuarial loss (gain) included in net income, before tax | 628 | (7,425) | 1,257 | (14,607) |
Amortization of net actuarial loss (gain) included in net income, income tax | (251) | 2,970 | (503) | 5,843 |
Amortization of net actuarial loss (gain) included in net income, after tax | 377 | (4,455) | 754 | (8,764) |
Total pension and other postretirement plans, before tax | 698 | (7,527) | 1,396 | (14,811) |
Total pension and other postretirement plans, income tax | (279) | 3,011 | (558) | 5,924 |
Total pension and other postretirement plans, after tax | 419 | (4,516) | 838 | (8,887) |
Cash flow hedge: | ||||
Gain for the period, before tax | 0 | 239 | 179 | 411 |
Gain for the period, income tax | 0 | (95) | (71) | (164) |
Gain for the period, after tax | 0 | 144 | 108 | 247 |
Other Comprehensive Loss, Before Tax | (5,992) | (262,760) | (26,122) | (240,603) |
Other Comprehensive (Loss) Income, income tax | (4,303) | (105,874) | (7,505) | (97,308) |
Other Comprehensive (Loss) Income, after tax | $ (1,689) | $ (156,886) | $ (18,617) | $ (143,295) |
Accumulated Other Comprehensi62
Accumulated Other Comprehensive Income (AOCI balances) (Details 2) - USD ($) $ in Thousands | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2015 | Jun. 30, 2014 | Jun. 30, 2015 | Jun. 30, 2014 | |
AOCI Including Portion Attributable to Noncontrolling Interest, Net of Tax [Roll Forward] | ||||
Accumulated Other Comprehensive Income, beginning balance | $ 453,480 | |||
Other comprehensive (loss) income before reclassifications | (19,009) | |||
Net amount reclassified from accumulated other comprehensive income | 392 | |||
Other Comprehensive Loss, Net of Tax | $ (1,689) | $ (156,886) | (18,617) | $ (143,295) |
Accumulated Other Comprehensive Income, ending balance | 434,863 | 434,863 | ||
Cumulative Foreign Currency Translation Adjustment [Member] | ||||
AOCI Including Portion Attributable to Noncontrolling Interest, Net of Tax [Roll Forward] | ||||
Accumulated Other Comprehensive Income, beginning balance | 8,548 | |||
Other comprehensive (loss) income before reclassifications | (6,839) | |||
Net amount reclassified from accumulated other comprehensive income | (525) | |||
Other Comprehensive Loss, Net of Tax | (7,364) | |||
Accumulated Other Comprehensive Income, ending balance | 1,184 | 1,184 | ||
Unrealized Gain on Available-for-Sale Securities [Member] | ||||
AOCI Including Portion Attributable to Noncontrolling Interest, Net of Tax [Roll Forward] | ||||
Accumulated Other Comprehensive Income, beginning balance | 52,130 | |||
Other comprehensive (loss) income before reclassifications | (12,199) | |||
Net amount reclassified from accumulated other comprehensive income | 0 | |||
Other Comprehensive Loss, Net of Tax | (12,199) | |||
Accumulated Other Comprehensive Income, ending balance | 39,931 | 39,931 | ||
Unrealized Gain on Pensions and Other Postretirement Plans [Member] | ||||
AOCI Including Portion Attributable to Noncontrolling Interest, Net of Tax [Roll Forward] | ||||
Accumulated Other Comprehensive Income, beginning balance | 392,910 | |||
Other comprehensive (loss) income before reclassifications | 0 | |||
Net amount reclassified from accumulated other comprehensive income | 838 | |||
Other Comprehensive Loss, Net of Tax | 838 | |||
Accumulated Other Comprehensive Income, ending balance | 393,748 | 393,748 | ||
Cash Flow Hedge [Member] | ||||
AOCI Including Portion Attributable to Noncontrolling Interest, Net of Tax [Roll Forward] | ||||
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, Net of Tax | 108 | |||
Accumulated Other Comprehensive Income, ending balance | $ 0 | $ 0 |
Accumulated Other Comprehensi63
Accumulated Other Comprehensive Income (Reclassifications out of AOCI) (Details 3) - USD ($) $ in Thousands | 3 Months Ended | 6 Months Ended | |||
Jun. 30, 2015 | Jun. 30, 2014 | Jun. 30, 2015 | Jun. 30, 2014 | ||
Reclassification Adjustment Out Of Accumulated Other Comprehensive Income [Line Items] | |||||
Income (Loss) from Discontinued Operations, Net of Tax | $ 0 | $ 375,189 | $ (784) | $ 376,921 | |
Other income, net | (11,678) | (268,114) | (10,573) | (401,387) | |
Income tax on unrealized gains on available-for-sale securities reclassified out of accumulated other comprehensive income | 0 | 106,424 | 0 | 106,110 | |
Amortization of net prior service cost (credit) included in net income | 70 | (102) | 139 | (204) | |
Amortization of net actuarial loss (gain) included in net income | 628 | (7,425) | 1,257 | (14,607) | |
Income Before Tax | (90,927) | (453,261) | (128,011) | (661,234) | |
Provision for Income Taxes | 32,500 | 78,600 | 47,000 | 156,000 | |
Interest expense | 9,631 | 8,557 | 18,152 | 17,377 | |
Income Net of Tax | (58,427) | (374,661) | (81,011) | (505,234) | |
Reclassification out of Accumulated Other Comprehensive Income [Member] | |||||
Reclassification Adjustment Out Of Accumulated Other Comprehensive Income [Line Items] | |||||
Income Net of Tax | (65) | (164,021) | 392 | (167,794) | |
Foreign Currency Translation Adjustment [Member] | Reclassification out of Accumulated Other Comprehensive Income [Member] | |||||
Reclassification Adjustment Out Of Accumulated Other Comprehensive Income [Line Items] | |||||
Other income, net | (484) | 0 | (525) | 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 income, net | 0 | (266,059) | 0 | (265,274) | |
Income tax on unrealized gains on available-for-sale securities reclassified out of accumulated other comprehensive income | [1] | 0 | 106,424 | 0 | 106,110 |
Provision for Income Taxes | 900 | 1,200 | |||
Income Net of Tax | 0 | (159,635) | 0 | (159,164) | |
Unrealized Gain on Available-for-Sale Securities [Member] | Reclassification out of Accumulated Other Comprehensive Income [Member] | Berkshire Exchange Transaction [Member] | |||||
Reclassification Adjustment Out Of Accumulated Other Comprehensive Income [Line Items] | |||||
Income tax on unrealized gains on available-for-sale securities reclassified out of accumulated other comprehensive income | 107,300 | 107,300 | |||
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 | [2] | 70 | (102) | 139 | (204) |
Amortization of net actuarial loss (gain) included in net income | [2] | 628 | (7,425) | 1,257 | (14,607) |
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 | (7,527) | 1,396 | (14,811) | |
Provision for Income Taxes | (279) | 3,011 | (558) | 5,924 | |
Income Net of Tax | 419 | (4,516) | 838 | (8,887) | |
Cash Flow Hedge [Member] | Reclassification out of Accumulated Other Comprehensive Income [Member] | |||||
Reclassification Adjustment Out Of Accumulated Other Comprehensive Income [Line Items] | |||||
Provision for Income Taxes | 0 | (86) | (53) | (171) | |
Interest expense | 0 | 216 | 132 | 428 | |
Income Net of Tax | $ 0 | $ 130 | $ 79 | $ 257 | |
[1] | Benefits of $0.9 million and $1.2 million were recorded in Provision for Income Taxes related to the realized loss for the three and six months ended June 30, 2014, respectively. The remaining $107.3 million for the three and six months ended June 30, 2014, relates to the reversal of income taxes previously recorded on the unrealized gain of the Company’s investment in Berkshire Hathaway Inc. marketable equity securities as part of the Berkshire exchange transaction (see Note 4). | ||||
[2] | These accumulated other comprehensive income components are included in the computation of net periodic pension and postretirement plan cost (see Note 9). |
Contingencies (Details)
Contingencies (Details) | 1 Months Ended | 6 Months Ended | |||
Jul. 31, 2015USD ($) | Jun. 30, 2015claimCaseprogram_review | Mar. 11, 2015claim | Feb. 13, 2013allegations | Aug. 17, 2011claimComplaint | |
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 | program_review | 5 | ||||
Charlestown and Kenmore Square campuses [Member] | Higher Education [Member] | Subsequent Event [Member] | |||||
Loss Contingencies [Line Items] | |||||
Litigation Settlement, Amount | $ | $ (1,375,000) | ||||
Diaz Case [Member] | Education [Member] | |||||
Loss Contingencies [Line Items] | |||||
Separate Complaints Included In Diaz Case Received Rulings | Complaint | 3 | ||||
Number of allegations not dismissed | 1 | ||||
Diaz Claims [Member] | Education [Member] | |||||
Loss Contingencies [Line Items] | |||||
Number of claims 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 | Case | 2 | ||||
Jajdelski Case [Member] | Education [Member] | |||||
Loss Contingencies [Line Items] | |||||
Number of allegations not dismissed | allegations | 1 |
Business Segments (Narrative) (
Business Segments (Narrative) (Details) - Segments [Domain] - Entity [Domain] $ in Thousands | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2015USD ($) | Jun. 30, 2014USD ($) | Jun. 30, 2015USD ($)Segment | Jun. 30, 2014USD ($) | |
Segment Reporting Information [Line Items] | ||||
Number of reportable segments | Segment | 6 | |||
Total operating revenues | $ (879,571) | $ (874,411) | $ (1,725,719) | $ (1,710,952) |
Business Segments (Information
Business Segments (Information by Operating Segment) (Details 1) - USD ($) $ in Thousands | 3 Months Ended | 6 Months Ended | |||
Jun. 30, 2015 | Jun. 30, 2014 | Jun. 30, 2015 | Jun. 30, 2014 | Dec. 31, 2014 | |
Segment Reporting Information [Line Items] | |||||
Operating Revenues | $ 879,571 | $ 874,411 | $ 1,725,719 | $ 1,710,952 | |
Income (Loss) from Operations | 88,895 | 101,560 | 135,450 | 180,429 | |
Equity in (losses) earnings of affiliates, net | (353) | 91,503 | (757) | 95,555 | |
Interest Expense, Net | (9,293) | (7,916) | (17,255) | (16,137) | |
Other Income, Net | 11,678 | 268,114 | 10,573 | 401,387 | |
Income from Continuing Operations Before Income Taxes | 90,927 | 453,261 | 128,011 | 661,234 | |
Depreciation of property, plant and equipment | 61,014 | 51,989 | 119,559 | 105,206 | |
Amortization Of Intangible Assets and Impairment of Long-lived Assets | 11,553 | 2,995 | 16,322 | 5,712 | |
Amortization of intangible assets | 4,677 | 2,995 | 9,446 | 5,712 | |
Impairment of long-lived assets | 6,876 | 0 | 6,876 | 0 | |
Net Pension (Credit) Expense | (11,440) | (17,919) | (22,872) | (30,107) | |
Identifiable Assets | 4,736,004 | 4,736,004 | $ 4,384,167 | ||
Investment in Marketable Equity Securities | 173,460 | 173,460 | 193,793 | ||
Investments in Affiliates | 50,898 | 50,898 | 19,811 | ||
Prepaid Pension Cost | 1,175,521 | 1,175,521 | 1,152,488 | ||
Assets Held for Sale | 46,057 | 46,057 | 2,060 | ||
Total Assets | 6,181,940 | 6,181,940 | 5,752,319 | ||
Education [Member] | |||||
Segment Reporting Information [Line Items] | |||||
Impairment of long-lived assets | 6,900 | ||||
Operating Segments [Member] | Education [Member] | |||||
Segment Reporting Information [Line Items] | |||||
Operating Revenues | 523,625 | 542,964 | 1,024,227 | 1,065,118 | |
Income (Loss) from Operations | 15,848 | 17,637 | (7,001) | 19,499 | |
Depreciation of property, plant and equipment | 21,980 | 15,372 | 40,508 | 31,788 | |
Amortization Of Intangible Assets and Impairment of Long-lived Assets | 8,343 | 1,798 | 9,850 | 3,722 | |
Amortization of intangible assets | 1,467 | 1,798 | 2,974 | 3,722 | |
Impairment of long-lived assets | 6,876 | 0 | 6,876 | 0 | |
Net Pension (Credit) Expense | 3,947 | 3,566 | 7,894 | 7,709 | |
Identifiable Assets | 1,576,872 | 1,576,872 | 1,781,543 | ||
Operating Segments [Member] | Education [Member] | Reportable Subsegments [Member] | Higher Education [Member] | |||||
Segment Reporting Information [Line Items] | |||||
Operating Revenues | 240,717 | 251,936 | 478,285 | 505,715 | |
Income (Loss) from Operations | 24,764 | 20,952 | 25,357 | 34,096 | |
Depreciation of property, plant and equipment | 4,794 | 7,080 | 9,622 | 14,820 | |
Net Pension (Credit) Expense | 2,532 | 2,629 | 5,064 | 5,257 | |
Identifiable Assets | 544,306 | 544,306 | 749,421 | ||
Operating Segments [Member] | Education [Member] | Reportable Subsegments [Member] | Test Preparation [Member] | |||||
Segment Reporting Information [Line Items] | |||||
Operating Revenues | 80,381 | 81,098 | 149,607 | 148,902 | |
Income (Loss) from Operations | 7,079 | (3,904) | 2,745 | (10,532) | |
Depreciation of property, plant and equipment | 2,263 | 3,072 | 5,153 | 6,856 | |
Net Pension (Credit) Expense | 775 | 722 | 1,550 | 1,444 | |
Identifiable Assets | 155,304 | 155,304 | 167,055 | ||
Operating Segments [Member] | Education [Member] | Reportable Subsegments [Member] | Kaplan International [Member] | |||||
Segment Reporting Information [Line Items] | |||||
Operating Revenues | 200,703 | 209,045 | 392,784 | 407,892 | |
Income (Loss) from Operations | 17,573 | 16,898 | 25,290 | 26,756 | |
Depreciation of property, plant and equipment | 5,073 | 4,916 | 9,727 | 9,596 | |
Net Pension (Credit) Expense | 106 | 89 | 212 | 178 | |
Identifiable Assets | 836,010 | 836,010 | 838,148 | ||
Operating Segments [Member] | Education [Member] | Reportable Subsegments [Member] | Kaplan Corporate and Other [Member] | |||||
Segment Reporting Information [Line Items] | |||||
Operating Revenues | 1,959 | 1,385 | 3,818 | 3,399 | |
Income (Loss) from Operations | (33,594) | (16,401) | (60,451) | (30,957) | |
Depreciation of property, plant and equipment | 9,850 | 304 | 16,006 | 516 | |
Net Pension (Credit) Expense | 534 | 126 | 1,068 | 830 | |
Identifiable Assets | 41,252 | 41,252 | 26,919 | ||
Operating Segments [Member] | Education [Member] | Intersubsegment Eliminations [Member] | |||||
Segment Reporting Information [Line Items] | |||||
Operating Revenues | (135) | (500) | (267) | (790) | |
Income (Loss) from Operations | 26 | 92 | 58 | 136 | |
Operating Segments [Member] | Cable [Member] | |||||
Segment Reporting Information [Line Items] | |||||
Operating Revenues | 198,681 | 200,829 | 397,404 | 404,750 | |
Income (Loss) from Operations | 38,445 | 46,780 | 77,521 | 87,942 | |
Depreciation of property, plant and equipment | 35,405 | 33,788 | 71,753 | 67,575 | |
Amortization Of Intangible Assets and Impairment of Long-lived Assets | 30 | 59 | 61 | 94 | |
Net Pension (Credit) Expense | 975 | 888 | 1,950 | 1,752 | |
Identifiable Assets | 1,357,414 | 1,357,414 | 1,253,764 | ||
Operating Segments [Member] | Television Broadcasting [Member] | |||||
Segment Reporting Information [Line Items] | |||||
Operating Revenues | 90,753 | 88,297 | 174,317 | 173,948 | |
Income (Loss) from Operations | 42,014 | 44,088 | 80,576 | 88,474 | |
Depreciation of property, plant and equipment | 2,125 | 2,039 | 4,234 | 4,033 | |
Amortization Of Intangible Assets and Impairment of Long-lived Assets | 63 | 0 | 126 | 0 | |
Net Pension (Credit) Expense | 391 | 358 | 782 | 678 | |
Identifiable Assets | 305,857 | 305,857 | 305,426 | ||
Operating Segments [Member] | Other Businesses [Member] | |||||
Segment Reporting Information [Line Items] | |||||
Operating Revenues | 66,512 | 42,351 | 129,771 | 67,264 | |
Income (Loss) from Operations | (2,161) | (6,995) | (7,323) | (17,742) | |
Depreciation of property, plant and equipment | 1,254 | 780 | 2,556 | 1,300 | |
Amortization Of Intangible Assets and Impairment of Long-lived Assets | 3,117 | 1,138 | 6,285 | 1,896 | |
Net Pension (Credit) Expense | 186 | 202 | 379 | 366 | |
Identifiable Assets | 479,049 | 479,049 | 518,807 | ||
Operating Segments [Member] | Corporate Office [Member] | |||||
Segment Reporting Information [Line Items] | |||||
Operating Revenues | 0 | 0 | 0 | 0 | |
Income (Loss) from Operations | (5,251) | 50 | (8,323) | 2,256 | |
Depreciation of property, plant and equipment | 250 | 10 | 508 | 510 | |
Amortization Of Intangible Assets and Impairment of Long-lived Assets | 0 | 0 | 0 | 0 | |
Net Pension (Credit) Expense | (16,939) | (22,933) | (33,877) | (40,612) | |
Identifiable Assets | 1,016,812 | 1,016,812 | $ 524,627 | ||
Intersegment Elimination [Member] | |||||
Segment Reporting Information [Line Items] | |||||
Operating Revenues | $ 0 | $ (30) | $ 0 | $ (128) |