Document and Entity Information
Document and Entity Information - shares | 9 Months Ended | |
Sep. 30, 2015 | Oct. 30, 2015 | |
Document Type | 10-Q | |
Amendment Flag | false | |
Document Period End Date | Sep. 30, 2015 | |
Document Fiscal Year Focus | 2,015 | |
Document Fiscal Period Focus | Q3 | |
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 | 4,876,353 |
Condensed Consolidated Statemen
Condensed Consolidated Statements of Operations - USD ($) shares in Thousands, $ in Thousands | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2015 | Sep. 30, 2014 | Sep. 30, 2015 | Sep. 30, 2014 | |
Operating Revenues [Abstract] | ||||
Education | $ 481,687 | $ 543,918 | $ 1,505,914 | $ 1,609,036 |
Advertising | 68,898 | 72,951 | 205,489 | 216,653 |
Other | 90,847 | 86,336 | 258,344 | 183,718 |
Total Operating Revenues | 641,432 | 703,205 | 1,969,747 | 2,009,407 |
Operating Costs and Expenses [Abstract] | ||||
Operating | 302,029 | 326,395 | 922,373 | 944,066 |
Selling, general and administrative | 285,563 | 309,583 | 864,380 | 862,379 |
Depreciation of property, plant and equipment | 14,460 | 18,664 | 62,266 | 56,295 |
Amortization of intangible assets | 4,512 | 7,354 | 13,897 | 12,972 |
Impairment of goodwill and other long-lived assets | 248,591 | 0 | 255,467 | 0 |
Total Operating Costs and Expenses | 855,155 | 661,996 | 2,118,383 | 1,875,712 |
(Loss) Income from Operations | (213,723) | 41,209 | (148,636) | 133,695 |
Equity in earnings (losses) of affiliates, net | 95 | 4,613 | (662) | 100,168 |
Interest income | 481 | 529 | 1,363 | 1,769 |
Interest expense | (7,830) | (9,298) | (24,679) | (26,610) |
Other (expense) income, net | (40,458) | (10,723) | (29,885) | 390,664 |
(Loss) Income from Continuing Operations Before Income Taxes | (261,435) | 26,330 | (202,499) | 599,686 |
(Benefit) Provision for Income Taxes | (30,500) | 16,100 | (10,000) | 140,300 |
(Loss) Income from Continuing Operations | (230,935) | 10,230 | (192,499) | 459,386 |
Income from Discontinued Operations, Net of Tax | 379 | 66,209 | 42,170 | 499,208 |
Net (Loss) Income | (230,556) | 76,439 | (150,329) | 958,594 |
Net (Income) Loss Attributable to Noncontrolling Interests | (287) | 121 | (1,495) | 839 |
Net (Loss) Income Attributable to Graham Holdings Company | (230,843) | 76,560 | (151,824) | 959,433 |
Redeemable Preferred Stock Dividends | 0 | (209) | (631) | (847) |
Net (Loss) Income Attributable to Graham Holdings Company Common Stockholders | (230,843) | 76,351 | (152,455) | 958,586 |
Amounts Attributable to Graham Holdings Company Common Stockholders | ||||
(Loss) income from continuing operations | (231,222) | 10,142 | (194,625) | 459,378 |
Income from discontinued operations, net of tax | 379 | 66,209 | 42,170 | 499,208 |
Net (Loss) Income Attributable to Graham Holdings Company Common Stockholders | $ (230,843) | $ 76,351 | $ (152,455) | $ 958,586 |
Per Share Information Attributable to Graham Holdings Company Common Stockholders | ||||
Basic (loss) income per common share from continuing operations in dollars per share | $ (40.32) | $ 1.73 | $ (34.18) | $ 66.77 |
Basic income per common share from discontinued operations in dollars per share | 0.07 | 11.45 | 7.99 | 72.53 |
Basic net (loss) income per common share in dollars per share | $ (40.25) | $ 13.18 | $ (26.19) | $ 139.30 |
Basic average number of common shares outstanding in shares | 5,738 | 5,671 | 5,721 | 6,737 |
Diluted (loss) income per common share from continuing operations in dollars per share | $ (40.32) | $ 1.73 | $ (34.18) | $ 66.52 |
Diluted income per common share from discontinued operations in dollars per share | 0.07 | 11.39 | 7.99 | 72.27 |
Diluted net (loss) income per common share in dollars per share | $ (40.25) | $ 13.12 | $ (26.19) | $ 138.79 |
Diluted average number of common shares outstanding in shares | 5,837 | 5,757 | 5,811 | 6,823 |
Condensed Consolidated Stateme3
Condensed Consolidated Statements of Comprehensive Income - USD ($) $ in Thousands | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2015 | Sep. 30, 2014 | Sep. 30, 2015 | Sep. 30, 2014 | |
Statement of Comprehensive Income [Abstract] | ||||
Net (Loss) Income | $ (230,556) | $ 76,439 | $ (150,329) | $ 958,594 |
Foreign currency translation adjustments: | ||||
Translation adjustments arising during the period | (10,548) | (9,777) | (17,387) | (7,111) |
Adjustment for sales of businesses with foreign operations | 6,026 | 0 | 5,501 | 0 |
Total foreign currency translation adjustments, before tax | (4,522) | (9,777) | (11,886) | (7,111) |
Unrealized gains (losses) on available-for-sale securities: | ||||
Unrealized gains (losses) for the period, net | 3,836 | 9,734 | (16,497) | 46,139 |
Reclassification adjustment for realization of (gain) loss on exchange, sale or write-down of available-for-sale securities included in net income | 0 | 0 | 0 | (265,274) |
Total unrealized gains (losses) on available-for-sale securities, before tax | 3,836 | 9,734 | (16,497) | (219,135) |
Pension and other postretirement plans: | ||||
Amortization of net prior service cost (credit) included in net income | 68 | (101) | 207 | (305) |
Amortization of net actuarial gain included in net income | (5,676) | (7,425) | (4,419) | (22,032) |
Curtaliment gains included in net income | 51 | 0 | 51 | 0 |
Curtailment and settlement included in distribution to Cable ONE | 1,403 | 0 | 1,403 | 0 |
Total pension and other postretirement plans, before tax | (4,154) | (7,526) | (2,758) | (22,337) |
Cash flow hedge gain | 0 | 230 | 179 | 641 |
Other Comprehensive Loss, Before Tax | (4,840) | (7,339) | (30,962) | (247,942) |
Income tax benefit (expense) related to items of other comprehensive loss | 127 | (975) | 7,632 | 96,333 |
Other Comprehensive Loss, Net of Tax | (4,713) | (8,314) | (23,330) | (151,609) |
Comprehensive (Loss) Income | (235,269) | 68,125 | (173,659) | 806,985 |
Comprehensive (income) loss attributable to noncontrolling interests | (287) | 121 | (1,495) | 839 |
Total Comprehensive (Loss) Income Attributable to Graham Holdings Company | $ (235,556) | $ 68,246 | $ (175,154) | $ 807,824 |
Condensed Consolidated Balance
Condensed Consolidated Balance Sheets - USD ($) $ in Thousands | Sep. 30, 2015 | Dec. 31, 2014 |
Current Assets | ||
Cash and cash equivalents | $ 977,991 | $ 772,751 |
Restricted cash | 25,347 | 24,898 |
Investments in marketable equity securities and other investments | 343,076 | 226,752 |
Accounts receivable, net | 498,710 | 571,357 |
Income taxes receivable | 41,035 | 0 |
Deferred income taxes | 4,595 | 934 |
Inventories and contracts in progress | 12,206 | 11,309 |
Other current assets | 53,171 | 81,462 |
Current assets held for sale ($1,235 of cash) | 0 | 1,240 |
Total Current Assets | 1,956,131 | 1,690,703 |
Property, Plant and Equipment, Net | 203,113 | 860,829 |
Investments in Affiliates | 53,198 | 19,811 |
Goodwill, Net | 947,356 | 1,348,710 |
Indefinite-Lived Intangible Assets, Net | 14,645 | 516,753 |
Amortized Intangible Assets, Net | 81,814 | 96,947 |
Prepaid Pension Cost | 1,189,181 | 1,152,488 |
Deferred Charges and Other Assets | 78,891 | 65,258 |
Noncurrent Assets Held for Sale | 0 | 820 |
Total Assets | 4,524,329 | 5,752,319 |
Current Liabilities | ||
Accounts payable and accrued liabilities | 410,192 | 464,342 |
Income taxes payable | 0 | 128,895 |
Deferred revenue | 334,328 | 410,146 |
Dividends declared | 6,715 | 0 |
Short-term borrowings | 3,000 | 46,375 |
Redeemable preferred stock | 10,510 | 0 |
Current liabilities held for sale | 0 | 1,034 |
Total Current Liabilities | 764,745 | 1,050,792 |
Postretirement Benefits Other Than Pensions | 38,507 | 37,962 |
Accrued Compensation and Related Benefits | 215,077 | 244,082 |
Other Liabilities | 73,182 | 91,789 |
Deferred Income Taxes | 447,158 | 754,960 |
Long-Term Debt | 399,822 | 399,545 |
Total Liabilities | 1,938,491 | 2,579,130 |
Redeemable Noncontrolling Interest | 23,415 | 21,904 |
Redeemable Preferred Stock | 0 | 10,510 |
Preferred Stock | 0 | 0 |
Common Stockholders’ Equity | ||
Common stock | 20,000 | 20,000 |
Capital in excess of par value | 345,074 | 303,789 |
Retained earnings | 5,396,508 | 6,008,506 |
Accumulated other comprehensive income, net of tax | ||
Cumulative foreign currency translation adjustment | (3,338) | 8,548 |
Unrealized gain on available-for-sale securities | 42,232 | 52,130 |
Unrealized gain on pensions and other postretirement plans | 391,256 | 392,910 |
Cash flow hedge | 0 | (108) |
Cost of Class B common stock held in treasury | (3,629,309) | (3,645,476) |
Total Common Stockholders’ Equity | 2,562,423 | 3,140,299 |
Noncontrolling Interests | 0 | 476 |
Total Equity | 2,562,423 | 3,140,775 |
Total Liabilities and Equity | $ 4,524,329 | $ 5,752,319 |
Consolidated Balance Sheets (Pa
Consolidated Balance Sheets (Parentheticals) - USD ($) $ in Thousands | Jul. 01, 2015 | Dec. 31, 2014 |
Statement of Financial Position [Abstract] | ||
Cash held for sale | $ 94,115 | $ 1,235 |
Condensed Consolidated Stateme6
Condensed Consolidated Statements of Cash Flows - USD ($) $ in Thousands | 9 Months Ended | |
Sep. 30, 2015 | Sep. 30, 2014 | |
Cash Flows from Operating Activities | ||
Net (Loss) Income | $ (150,329) | $ 958,594 |
Adjustments to reconcile net income to net cash provided by operating activities: | ||
Depreciation of property, plant and equipment | 134,019 | 159,917 |
Amortization of intangible assets | 13,958 | 13,847 |
Goodwill and other long-lived assets impairment charges | 255,467 | 7,774 |
Net pension benefit | (45,081) | (51,637) |
Early retirement program expense | 3,734 | 8,374 |
Stock-based compensation expense, net | 38,423 | 13,123 |
Foreign exchange loss | 16,191 | 2,618 |
Net loss (gain) on sales and disposition of businesses | 18,095 | (354,612) |
Net loss (gain) on disposition or write-downs of marketable equity securities and cost method investments | 1,364 | (266,173) |
Gain on sale of equity affiliate | (4,827) | 0 |
Equity in losses (earnings) of affiliates, net of certain distributions | 853 | (96,315) |
(Benefit) provision for deferred income taxes | (29,152) | 8,329 |
Net loss (gain) on sale or write-down of property, plant and equipment | 1,539 | (119,158) |
Net gain on sale of intangible assets | 0 | (75,249) |
Change in assets and liabilities: | ||
(Increase) decrease in restricted cash | (449) | 45,174 |
Decrease in accounts receivable, net | (20,480) | (12,867) |
Increase (decrease) in accounts payable and accrued liabilities | 74,112 | (46,673) |
(Decrease) increase in deferred revenue | (11,880) | 70,011 |
(Decrease) increase in income taxes payable | (159,490) | 68,081 |
(Increase) decrease in other assets and other liabilities, net | (21,061) | 15,300 |
Other | 1,101 | (1,588) |
Net Cash Provided by Operating Activities | 116,107 | 346,870 |
Cash Flows from Investing Activities | ||
Purchases of marketable equity securities | (135,124) | (57) |
Purchases of property, plant and equipment | (120,018) | (172,434) |
Investments in equity affiliates and cost method investments | (19,038) | (8,388) |
Net proceeds from sales of businesses, property, plant and equipment and other assets | (807) | 248,938 |
Investments in commercial paper | 0 | (399,758) |
Proceeds from maturities of commercial paper | 0 | 349,793 |
Investments in certain businesses, net of cash acquired | 0 | (200,793) |
Net distribution from equity affiliate | 0 | 93,481 |
Other | 60 | (5,040) |
Net Cash Used in Investing Activities | (274,927) | (94,258) |
Cash Flows from Financing Activities | ||
Issuance of borrowings | 550,000 | 405 |
Net cash distributed to Cable ONE in spin-off | (94,115) | 0 |
Dividends paid | (47,006) | (53,131) |
Repayments of borrowings | (41,815) | (1,315) |
Proceeds from exercise of stock options | 11,308 | 5,056 |
Payments of financing costs | (9,944) | 0 |
Common shares repurchased, including the Berkshire Exchange transaction | 0 | (327,718) |
Other | 5,334 | 567 |
Net Cash Provided by (Used in) Financing Activities | 373,762 | (376,136) |
Effect of Currency Exchange Rate Change | (10,937) | (2,936) |
Net Increase (Decrease) in Cash and Cash Equivalents | 204,005 | (126,460) |
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 | $ 977,991 | $ 443,259 |
Organization, Basis of Presenta
Organization, Basis of Presentation and Recent Accounting Pronouncements | 9 Months Ended |
Sep. 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 five television broadcasting 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 operating results of Cable ONE have been presented in income from discontinued operations, net of tax, for all periods presented. On September 3, 2015, Kaplan completed the sale of substantially all of the assets of its Kaplan Higher Education (KHE) Campuses business, consisting of 38 nationally accredited ground campuses and certain related assets, to Education Corporation of America (ECA) in exchange for a preferred equity interest in ECA. The loss on the sale of the KHE Campuses business is included in other (expense) income, net, in the Condensed Consolidated Statement of Operations. 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 statement 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 nine months ended September 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 nine months ended September 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 nine months ended September 30, 2014 to properly eliminate noncash capital expenditures. The result of this correction for the nine months ended September 30, 2014 , was an increase in net cash used in investing activities of $10.0 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 nine months ended September 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: Nine Months Ended September 30, 2014 As Previously As (in thousands) Reported Revision Revised Cash Flows from Operating Activities Increase (decrease) in Accounts Payable and Accrued Liabilities $ (56,666 ) $ 9,993 $ (46,673 ) Net Cash Provided by Operating Activities 336,877 9,993 346,870 Cash Flows from Investing Activities Purchases of Property, Plant and Equipment $ (162,441 ) $ (9,993 ) $ (172,434 ) Net Cash Used in Investing Activities (84,265 ) (9,993 ) (94,258 ) Recently Adopted and Issued Accounting Pronouncements – In September 2015, the Financial Accounting Standards Board (FASB) issued new guidance that simplifies the accounting for measurement period adjustments for an acquirer in a business combination. The new guidance requires an acquirer to recognize any adjustments to the provisional purchase accounting in the reporting period the adjustment amounts are determined, by eliminating the requirement to retrospectively account for those adjustments. The guidance requires that the acquirer records, in the financial statements of the same period the adjustment is determined, the effect on earnings of changes in depreciation, amortization, or other income effects, if any, as a result of the change in the provisional amounts. The amount of the change is calculated as if the accounting has been completed at the acquisition date. The guidance is effective for interim and fiscal years beginning after December 15, 2015. Early adoption is permitted. The Company does not expect this guidance to have an impact on its Consolidated Financial Statements. In May 2014, the FASB issued comprehensive new guidance that supersedes all existing revenue recognition guidance. In August 2015, the FASB issued an amendment to the guidance that defers the effective date by one year. 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. The guidance is effective for interim and fiscal years beginning after December 15, 2017. Early adoption is permitted only as of annual reporting periods beginning after December 15, 2016. 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 | 9 Months Ended |
Sep. 30, 2015 | |
Discontinued Operations and Disposal Groups [Abstract] | |
Discontinued Operations | DISCONTINUED OPERATIONS Cable ONE Spin-Off. On July 1, 2015 (the “Distribution Date”), the Company completed the spin-off of Cable ONE as an independent, publicly traded company. The transaction was structured as a tax-free spin-off of Cable ONE to the stockholders of the Company as one share of Cable ONE common stock was distributed for every share of Class A and Class B common stock of Graham Holdings outstanding on the June 15, 2015, record date. Cable ONE is now an independent public company trading on the New York Stock Exchange under the symbol “CABO”. After the spin, the Company does not beneficially own any shares of Cable ONE common stock. The results of operations of Cable ONE are included in the Company’s Condensed Consolidated Statements of Operations as Income 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 order to implement the Spin-Off, the Company entered into certain agreements with Cable ONE to give effect to the legal and structural separation and to allocate various assets, liabilities and obligations between the Company and Cable ONE. In addition to executing the Spin-Off in the manner provided in the agreements, in June 2015, Cable ONE distributed $450 million in cash to the Company using the proceeds from their issuance of unsecured notes of $450 million 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 reflected as discontinued operations in the Company’s condensed consolidated financial statements. 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 restricted 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 incremental stock compensation expense of $23.5 million , of which $18.8 million related to fully vested stock options was recognized as a one-time expense in the third quarter of 2015, with the remaining $4.7 million to be recognized over the remaining service periods of the unvested stock options through the end of 2018. The $18.8 million expense is included in the Company's corporate office segment results and in selling, general and administrative in the Condensed Consolidated Statements of Operations. As a result 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. A pension curtailment gain of $2.2 million was recorded in the third quarter of 2015 in discontinued operations, net of tax. On July 1, 2015, the Company divested the following assets and liabilities which net to $406.5 million , or $312.3 million net of cash retained by Cable ONE on the Distribution Date: As of (in thousands) July 1, 2015 Cash and cash equivalents $ 94,115 Accounts receivable, net 29,778 Other current assets 14,182 Total current assets 138,075 Property, plant and equipments, net 612,812 Goodwill, net 85,488 Indefinite-lived intangible assets, net 496,321 Amortized intangible assets, net 510 Deferred charges and other assets 22,541 Total Assets $ 1,355,747 Accounts payable and accrued liabilities $ 70,920 Income taxes payable 2,962 Deferred revenue 21,883 Short-term borrowings 2,500 Total current liabilities 98,265 Accrued compensation and related benefits 24,227 Other liabilities 57 Deferred income taxes 279,245 Long-term debt 547,500 Total Liabilities $ 949,294 Net assets divested in the Spin-Off $ 406,453 Cash flows from Cable ONE for the three and nine months ended September 30, 2015 and 2014 are combined with the cash flows from operations within each of the categories presented. Cash flows from Cable ONE are as follows: Three Months Ended Nine Months Ended September 30 September 30 (in thousands) 2015 2014 2015 2014 Net Cash (Used in) Provided by Operating Activities $ (4,468 ) $ 59,863 $ 111,665 $ 187,153 Net Cash Provided by (Used in) Investing Activities — 51,283 (74,416 ) (35,705 ) Spin-Off Costs: One-time Spin-Off transaction and financing and related costs of $7.4 million and $3.5 million in 2015 and 2014, respectively, are included in discontinued operations, net of tax. Other 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 that resulted in a pre-tax loss of $4.4 million . An additional school in China was sold by Kaplan in January of 2015 that 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 Nine Months Ended (in thousands) 2015 2014 2015 2014 Operating revenues $ — $ 196,960 $ 397,404 $ 647,128 Operating costs and expenses 1,662 (157,819 ) (325,379 ) (511,981 ) Operating income 1,662 39,141 72,025 135,147 Non-operating income (expense) — 75,217 (1,288 ) 75,153 Income from discontinued operations 1,662 114,358 70,737 210,300 Provision for income taxes 1,283 42,331 27,783 77,271 Net Income from Discontinued Operations 379 72,027 42,954 133,029 (Loss) gain on sales of discontinued operations — (4,352 ) (732 ) 349,875 Expense (benefit) from income taxes on sales of discontinued operations — 1,466 52 (16,304 ) Income from Discontinued Operations, Net of Tax $ 379 $ 66,209 $ 42,170 $ 499,208 The following table summarizes the 2015 quarterly operating results of the Company following the reclassification of the operations discussed above as discontinued operations: March 31, June 30, (in thousands, except per share amounts) 2015 2015 Operating Revenues Education $ 500,602 $ 523,625 Advertising 66,454 70,137 Other 80,369 87,128 647,425 680,890 Operating Costs and Expenses Operating 309,223 311,121 Selling, general and administrative 302,405 276,412 Depreciation of property, plant and equipment 22,197 25,609 Amortization of intangible assets 4,738 4,647 Impairment of long-lived assets — 6,876 638,563 624,665 Income from Operations 8,862 56,225 Equity in losses of affiliates, net (404 ) (353 ) Interest income 559 323 Interest expense (8,501 ) (8,348 ) Other (expense) income, net (1,105 ) 11,678 (Loss) Income from Continuing Operations before Income Taxes (589 ) 59,525 Provision for Income Taxes 900 19,600 (Loss) Income from Continuing Operations (1,489 ) 39,925 Income from Discontinued Operations, Net of Tax 23,289 18,502 Net Income 21,800 58,427 Net Income Attributable to Noncontrolling Interests (774 ) (434 ) Net Income Attributable to Graham Holdings Company 21,026 57,993 Redeemable Preferred Stock Dividends (420 ) (211 ) Net Income Attributable to Graham Holdings Company Common Stockholders $ 20,606 $ 57,782 Amounts Attributable to Graham Holdings Company Common Stockholders (Loss) income from continuing operations $ (2,683 ) $ 39,280 Income from discontinued operations, net of tax 23,289 18,502 Net income attributable to Graham Holdings Company common stockholders $ 20,606 $ 57,782 Per Share Information Attributable to Graham Holdings Company Common Stockholders Basic (loss) income per common share from continuing operations $ (0.58 ) $ 6.74 Basic income per common share from discontinued operations 4.09 3.18 Basic net income per common share $ 3.51 $ 9.92 Diluted (loss) income per common share from continuing operations $ (0.58 ) $ 6.71 Diluted income per common share from discontinued operations 4.06 3.16 Diluted net income per common share $ 3.48 $ 9.87 The following table summarizes the 2014 quarterly operating results of the Company following the reclassification of the operations discussed above as discontinued operations: March 31, June 30, September 30, December 31, (in thousands, except per share amounts) 2014 2014 2014 2014 Operating Revenues Education $ 522,154 $ 542,964 $ 543,918 $ 551,381 Advertising 70,115 73,587 72,951 91,561 Other 40,351 57,031 86,336 84,683 632,620 673,582 703,205 727,625 Operating Costs and Expenses Operating 296,507 321,163 326,395 317,687 Selling, general and administrative 276,294 276,502 309,583 269,779 Depreciation of property, plant and equipment 19,430 18,201 18,664 18,618 Amortization of intangible assets 2,682 2,936 7,354 5,215 Impairment of intangible and other long-lived assets — — — 17,302 594,913 618,802 661,996 628,601 Income from Operations 37,707 54,780 41,209 99,024 Equity in earnings of affiliates, net 4,052 91,503 4,613 202 Interest income 599 641 529 367 Interest expense (8,788 ) (8,525 ) (9,298 ) (8,922 ) Other (expense) income, net 133,273 268,114 (10,723 ) 387,346 Income from Continuing Operations before Income Taxes 166,843 406,513 26,330 478,017 Provision for Income Taxes 62,300 61,900 16,100 172,000 Income from Continuing Operations 104,543 344,613 10,230 306,017 Income from Discontinued Operations, Net of Tax 27,762 405,237 66,209 28,649 Net Income 132,305 749,850 76,439 334,666 Net Loss (Income) Attributable to Noncontrolling Interests 219 499 121 (256 ) Net Income Attributable to Graham Holdings Company 132,524 750,349 76,560 334,410 Redeemable Preferred Stock Dividends (426 ) (212 ) (209 ) — Net Income Attributable to Graham Holdings Company Common Stockholders $ 132,098 $ 750,137 $ 76,351 $ 334,410 Amounts Attributable to Graham Holdings Company Common Stockholders Income from continuing operations $ 104,336 $ 344,900 $ 10,142 $ 305,761 Income from discontinued operations, net of tax 27,762 405,237 66,209 28,649 Net income attributable to Graham Holdings Company common stockholders $ 132,098 $ 750,137 $ 76,351 $ 334,410 Per Share Information Attributable to Graham Holdings Company Common Stockholders Basic income per common share from continuing operations $ 14.10 $ 46.35 $ 1.73 $ 52.76 Basic income per common share from discontinued operations 3.75 54.45 11.45 4.95 Basic net income per common share $ 17.85 $ 100.80 $ 13.18 $ 57.71 Diluted income per common share from continuing operations $ 14.05 $ 46.20 $ 1.73 $ 52.48 Diluted income per common share from discontinued operations 3.74 54.28 11.39 4.93 Diluted net income per common share $ 17.79 $ 100.48 $ 13.12 $ 57.41 The following table summarizes the annual operating results of the Company following the reclassification of operations discussed above as discontinued operations: (in thousands, except per share amounts) 2014 2013 Operating Revenues Education $ 2,160,417 $ 2,163,734 Advertising 308,214 275,024 Other 268,401 161,844 2,737,032 2,600,602 Operating Costs and Expenses Operating 1,261,753 1,210,863 Selling, general and administrative 1,132,157 1,123,965 Depreciation of property, plant and equipment 74,913 101,171 Amortization of intangible assets 18,187 11,919 Impairment of intangible and other long-lived assets 17,302 3,250 2,504,312 2,451,168 Income from Operations 232,720 149,434 Equity in earnings of affiliates, net 100,370 13,215 Interest income 2,136 2,264 Interest expense (35,533 ) (35,931 ) Other income (expense), net 778,010 (23,751 ) Income from Continuing Operations before Income Taxes 1,077,703 105,231 Provision for Income Taxes 312,300 40,500 Income from Continuing Operations 765,403 64,731 Income from Discontinued Operations, Net of Tax 527,857 172,614 Net Income 1,293,260 237,345 Net Loss (Income) Attributable to Noncontrolling Interests 583 (480 ) Net Income Attributable to Graham Holdings Company 1,293,843 236,865 Redeemable Preferred Stock Dividends (847 ) (855 ) Net Income Attributable to Graham Holdings Company Common Stockholders $ 1,292,996 $ 236,010 Amounts Attributable to Graham Holdings Company Common Stockholders Income from continuing operations $ 765,139 $ 63,396 Income from discontinued operations, net of tax 527,857 172,614 Net income attributable to Graham Holdings Company common stockholders $ 1,292,996 $ 236,010 Per Share Information Attributable to Graham Holdings Company Common Stockholders Basic income per common share from continuing operations $ 115.88 $ 8.62 Basic income per common share from discontinued operations 79.93 23.48 Basic net income per common share $ 195.81 $ 32.10 Diluted income per common share from continuing operations $ 115.40 $ 8.61 Diluted income per common share from discontinued operations 79.63 23.44 Diluted net income per common share $ 195.03 $ 32.05 |
Investments
Investments | 9 Months Ended |
Sep. 30, 2015 | |
Investments [Abstract] | |
Investments | INVESTMENTS As of September 30, 2015 and December 31, 2014 , the Company had commercial paper and money market investments of $804.7 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 September 30, December 31, (in thousands) Total cost $ 242,505 $ 106,909 Gross unrealized gains 74,263 86,884 Gross unrealized losses (3,876 ) — Total Fair Value $ 312,892 $ 193,793 The Company invested $135.6 million in marketable equity securities during the first nine months of 2015 . There were no new investments in marketable equity securities during the first nine months of 2014 . There were no sales of marketable equity securities in the first nine 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 nine 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 September 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 | 9 Months Ended |
Sep. 30, 2015 | |
Acqusitions and Dispositions [Abstract] | |
Acquisitions, Dispositions, Exchanges and Other | ACQUISITIONS, DISPOSITIONS, EXCHANGES AND OTHER Acquisitions. In the first nine months of 2015 , the Company did no t make any acquisitions. In the first nine months of 2014 , the Company acquired seven businesses totaling $204.9 million , comprised of four businesses in other businesses, two businesses in Kaplan Test Prep, and one business in Kaplan Higher Ed. The purchase price allocation mostly comprised goodwill, other intangible assets, 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. The operating results of these businesses are included in other businesses. 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. Dispositions. 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 (see Note 2). On September 3, 2015, Kaplan completed the sale of 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 Education Corporation of America (ECA). KHE Campuses schools that have been closed or are in the process of closing are not included in the sale transaction. In connection with the sale agreement, if required by the ED in connection with its post-closing review of the transaction, Kaplan will provide a letter of credit or other credit support with the ED of up to approximately $45 million ; any such letter of credit or other credit support could be drawn by the ED in the event that ECA defaults on its obligations to students. If issued, such letter of credit or other credit support would have a term of two years , after which Kaplan would have no further obligations. The revenue and operating losses related to schools that are being sold as part of the ECA transaction are as follows: Three Months Ended Nine Months Ended September 30 September 30 (in thousands) 2015 2014 2015 2014 Revenue $ 43,121 $ 66,314 $ 167,244 $ 202,577 Operating loss 629 (2,474 ) (6,672 ) (9,981 ) In the second quarter of 2015, Kaplan recorded a $6.9 million long-lived assets impairment charge in connection with the KHE Campuses business. In the third quarter of 2015, Kaplan sold Franklyn Scholar, which was part of Kaplan International. 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 (losses) in other non-operating (expense) 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. 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 Allegheny Health Network 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 Cable ONE, 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 | 9 Months Ended |
Sep. 30, 2015 | |
Goodwill and Intangible Assets Disclosure [Abstract] | |
Goodwill and Other Intangible Assets | GOODWILL AND OTHER INTANGIBLE ASSETS As a result of continued declines in student enrollments at KHE and the challenging industry operating environment, the Company performed an interim impairment review of its goodwill and long-lived assets at the KHE reporting unit. Due to the complexity and effort required to estimate the fair value of the KHE reporting unit in step one of the impairment test and the fair value of the assets and liabilities of the KHE reporting unit in the step two analysis, the Company derived the fair value estimates based on preliminary assumptions and analysis that are subject to change. The KHE reporting unit failed the preliminary step one goodwill test. As a result of the preliminary step two analysis, the Company recorded an estimated $248.6 million goodwill impairment charge. The Company estimated the fair value of the KHE reporting unit utilizing a discounted cash flow model, supported by a market approach. A substantial portion of the estimated impairment charge is due to the amount of unrecognized intangible assets identified in the preliminary step two analysis. Any adjustment to the estimated impairment charge will be recorded in the fourth quarter of 2015. 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 September 30, 2015 and 2014 was $4.5 million and $7.4 million , respectively. Amortization of intangible assets for the nine months ended September 30, 2015 and 2014 was $13.9 million and $13.0 million , respectively. Amortization of intangible assets is estimated to be approximately $4 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. In July 2014, the cable division sold wireless spectrum licenses that were purchased in 2006; a pre-tax non-operating gain of $75.2 million was recorded in the third quarter of 2014 in connection with these sales. As a result of the Cable spin-off, this amount is now recorded in discontinued operations. 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 Impairment (248,591 ) — — — (248,591 ) Dispositions (33,502 ) (85,488 ) — (7,819 ) (126,809 ) Foreign currency exchange rate changes (30,524 ) — — — (30,524 ) Balance as of September 30, 2015 Goodwill 993,200 — 168,345 142,743 1,304,288 Accumulated impairment losses (350,850 ) — — (6,082 ) (356,932 ) $ 642,350 $ — $ 168,345 $ 136,661 $ 947,356 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 Impairment (248,591 ) — — (248,591 ) Dispositions (28,738 ) — (4,764 ) (33,502 ) Foreign currency exchange rate changes (280 ) — (30,244 ) (30,524 ) Balance as of September 30, 2015 Goodwill 380,866 166,098 446,236 993,200 Accumulated impairment losses (248,591 ) (102,259 ) — (350,850 ) $ 132,275 $ 63,839 $ 446,236 $ 642,350 Other intangible assets consist of the following: As of September 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 $ 1,232 $ 449 $ 2,500 $ 1,590 $ 910 Student and customer relationships 2–10 years 86,839 37,528 49,311 104,685 47,539 57,146 Databases and technology 3–5 years 10,518 9,367 1,151 10,501 8,827 1,674 Trade names and trademarks 2–10 years 53,140 22,709 30,431 55,452 19,724 35,728 Other 1–6 years (1) 2,184 1,712 472 8,969 7,480 1,489 $ 154,362 $ 72,548 $ 81,814 $ 182,107 $ 85,160 $ 96,947 Indefinite-Lived Intangible Assets Franchise agreements $ — $ 496,321 Licensure and accreditation 994 6,781 Other 13,651 13,651 $ 14,645 $ 516,753 ___________ _ (1) The Company’s other amortized intangible assets maximum useful life was 25 years as of December 31, 2014. |
Debt
Debt | 9 Months Ended |
Sep. 30, 2015 | |
Debt Disclosure [Abstract] | |
Debt | DEBT The Company’s borrowings consist of the following: As of September 30, December 31, (in thousands) 7.25% unsecured notes due February 1, 2019 $ 398,619 $ 398,308 AUD Revolving credit borrowing — 40,927 Other indebtedness 4,203 6,685 Total Debt 402,822 445,920 Less: current portion (3,000 ) (46,375 ) Total Long-Term Debt $ 399,822 $ 399,545 The Company’s other indebtedness at September 30, 2015 is at an interest rate of 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 30, 2015, the Company's debt included $550 million related to Cable ONE. 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. As of September 30, 2015 , the Company is in compliance with all financial covenants. 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 September 30, 2015 and 2014 , the Company had average borrowings outstanding of approximately $404.2 million and $450.9 million , respectively, at average annual interest rates of approximately 7.2% and 7.0% , respectively. During the three months ended September 30, 2015 and 2014 , the Company incurred net interest expense of $7.3 million and $8.8 million , respectively. During the nine months ended September 30, 2015 and 2014 , the Company had average borrowings outstanding of approximately $436.3 million and $451.4 million , respectively, at average annual interest rates of approximately 7.0% . During the nine months ended September 30, 2015 and 2014 , the Company incurred net interest expense of $23.3 million and $24.8 million , respectively. At September 30, 2015 , the fair value of the Company’s 7.25% unsecured notes, based on quoted market prices, totaled $422.0 million , compared with the carrying amount of $398.6 million . At December 31, 2014 , the fair value of the Company’s 7.25% unsecured notes, based on quoted market prices, totaled $450.3 million , compared with the carrying amount of $398.3 million . The carrying value of the Company’s other unsecured debt at September 30, 2015 approximates fair value. |
Fair Value Measurements
Fair Value Measurements | 9 Months Ended |
Sep. 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 September 30, 2015 (in thousands) Level 1 Level 2 Total Assets Money market investments (1) $ — $ 554,913 $ 554,913 Commercial paper (2) 249,827 — 249,827 Marketable equity securities (3) 312,892 — 312,892 Other current investments (4) 16,031 14,153 30,184 Total Financial Assets $ 578,750 $ 569,066 $ 1,147,816 Liabilities Deferred compensation plan liabilities (5) $ — $ 48,765 $ 48,765 ___________ _ (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. 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 Interest rate swap (6) — 179 179 Total Financial Liabilities $ — $ 70,840 $ 70,840 ____________ (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. In the third quarter of 2015, the Company recorded an estimated preliminary goodwill impairment charge of $248.6 million . 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 the goodwill and other long-lived assets are classified as Level 3 fair value assessments due to the significance of unobservable inputs developed in the determination of the fair values. The Company used a discounted cash flow model to determine the estimated fair value of the reporting unit. A market value approach was also utilized to supplement the discounted cash flow model. The Company made estimates and assumptions regarding future cash flows, discount rates, long-term growth rates and market values to determine the reporting unit’s estimated fair value. |
Stockholders' Equity
Stockholders' Equity | 9 Months Ended |
Sep. 30, 2015 | |
Stockholders' Equity Note [Abstract] | |
Stockholders' Equity | STOCKHOLDERS' EQUITY Stock Awards. As a result of the Cable ONE spin-off, the number of Class B common stock authorized for issuance under the 2012 Incentive Compensation Plan (the 2012 Plan) was increased from 500,000 shares to 772,588 shares. The individual award limits under the 2012 Plan was also increased from 50,000 shares to 77,258 shares per calendar year. Redeemable Preferred Stock. In the third quarter of 2015, the Company notified the holders of the Series A preferred stock of its intention to redeem the shares. On October 1, 2015, the Company redeemed the remaining 10,510 Series A preferred stock, with a par value of $1.00 per share and a liquidation preference of $1,000 per share, for $10.5 million . The Company reclassified the Series A preferred stock to current liabilities in the third quarter of 2015. (Loss) 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 (loss) earnings per share computations using the two-class method: Three Months Ended Nine Months Ended (in thousands, except per share amounts) 2015 2014 2015 2014 Numerator: Numerator for basic (loss) earnings per share: (Loss) income from continuing operations attributable to Graham Holdings Company common stockholders $ (231,222 ) $ 10,142 $ (194,625 ) $ 459,378 Less: Dividends-common stock outstanding and unvested restricted shares (6,736 ) (14,773 ) (53,090 ) (67,267 ) Undistributed (loss) earnings (237,958 ) (4,631 ) (247,715 ) 392,111 Percent allocated to common stockholders (1) 100.00 % 100.00 % 100.00 % 97.89 % (237,958 ) (4,631 ) (247,715 ) 383,842 Add: Dividends-common stock outstanding 6,621 14,462 52,180 66,021 Numerator for basic (loss) earnings per share $ (231,337 ) $ 9,831 $ (195,535 ) $ 449,863 Add: Additional undistributed earnings due to dilutive stock options — — — 36 Numerator for diluted (loss) earnings per share $ (231,337 ) $ 9,831 $ (195,535 ) $ 449,899 Denominator: Denominator for basic (loss) earnings per share: Weighted average shares outstanding 5,738 5,671 5,721 6,737 Add: Effect of dilutive stock options — 25 — 25 Denominator for diluted (loss) earnings per share 5,738 5,696 5,721 6,762 Graham Holdings Company Common Stockholders: Basic (loss) earnings per share from continuing operations $ (40.32 ) $ 1.73 $ (34.18 ) $ 66.77 Diluted (loss) earnings per share from continuing operations $ (40.32 ) $ 1.73 $ (34.18 ) $ 66.52 ____________ (1) Percent of undistributed losses allocated to common stockholders is 100% in the third quarter of 2015 and 2014 and first nine months of 2015 as participating securities are not contractually obligated to share in losses. Diluted (loss) 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 Nine Months Ended (in thousands) 2015 2014 2015 2014 Weighted average restricted stock 50 61 53 61 Weighted average stock options 49 — 37 — The diluted loss per share amounts for the three and nine months ended September 30, 2015 exclude the effects of 77,258 stock options outstanding as their inclusion would have been antidilutive. The diluted earnings per share amounts for the three and nine months ended September 30, 2014 exclude the effects of 5,000 stock options outstanding as their inclusion would have been antidilutive. The diluted loss per share amounts for the three and nine months ended September 30, 2015 exclude the effects of 5,050 restricted stock awards as their inclusion would have been antidilutive. The diluted earnings per share amounts for the three and nine months ended September 30, 2014 exclude the effects of 6,075 restricted stock awards, as their inclusion would have been antidilutive. In the three and nine months ended September 30, 2015 the Company declared regular dividends totaling $1.15 and $9.10 , respectively. In the three and nine months ended September 30, 2014 , the Company declared regular dividends totaling $2.55 and $10.20 , respectively. |
Pension and Postretirement Plan
Pension and Postretirement Plans | 9 Months Ended |
Sep. 30, 2015 | |
General Discussion of Pension and Other Postretirement Benefits [Abstract] | |
Pension and Postretirement Plans | PENSION AND POSTRETIREMENT PLANS 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 Supplemental Executive Retirement Plan (SERP). The Company also eliminated the accrual of pension benefits for all Cable ONE employees related to their future service. As a result of the spin-off of Cable ONE, the Company remeasured the accumulated and projected benefit obligation of the pension plan and SERP as of July 1, 2015, and recorded curtailment and settlement gains. The new measurement basis was used for the recognition of the SERP cost recorded in the third quarter of 2015 and the pension benefit recorded for the first two months of the third quarter of 2015. The curtailment gain on the spin-off of Cable ONE is included in (loss) income from discontinued operations, net of tax. The settlement gain on the spin-off of Cable ONE is included in the SERP liability distributed to Cable ONE (see Note 2). KHE Campuses Sale . On September 3, 2015, the Company eliminated the accrual of pension benefits for almost all of the KHE Campus employees related to their future service. As a result, the Company remeasured the accumulated and projected benefit obligation of the pension plan as of September 3, 2015, and the Company recorded a curtailment gain in the third quarter of 2015. The new measurement basis was used for the recognition of the Company's pension benefit beginning in September 2015. The curtailment gain on the sale of the KHE Campuses is included in the loss on the sale of the KHE Campuses and reported in Other (expense) income, net on the Condensed Consolidated Statement of Operations. 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 September 30 Nine Months Ended September 30 (in thousands) 2015 2014 2015 2014 Service cost $ 6,090 $ 6,976 $ 20,593 $ 21,489 Interest cost 13,516 12,894 39,077 38,870 Expected return on assets (33,673 ) (29,877 ) (96,771 ) (90,644 ) Amortization of prior service cost 79 83 241 247 Recognized actuarial gain (6,057 ) (7,280 ) (6,057 ) (21,599 ) Net Periodic Benefit (20,045 ) (17,204 ) (42,917 ) (51,637 ) Curtailment gains (3,267 ) — (3,267 ) — Early retirement programs and special separation benefit expense 3,734 3,884 3,734 8,374 Total Benefit $ (19,578 ) $ (13,320 ) $ (42,450 ) $ (43,263 ) For the three and nine months ended September 30, 2015 , the net periodic benefit for the Company's pension plans, as reported above, includes benefits of $0.1 million and costs of $1.9 million , respectively, reported in discontinued operations. For the three and nine months ended September 30, 2014 , the net periodic benefit for the Company's pension plans, as reported above, includes costs of $0.9 million and $2.8 million , respectively, reported in discontinued operations. The curtailment gain of $2.2 million related to the Cable spin-off is also included in discontinued operations for the three and nine months ended September 30, 2015 . The curtailment gain of $1.1 million related to the sale of the KHE Campuses business is included in Other (expense) income, net. In the third quarter of 2015, the Company recorded $3.7 million related to a Separation Incentive Program for certain Kaplan employees, which is being funded from the assets of the Company's pension plan. 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 the third quarter of 2014, the Company recorded $3.9 million related to a Voluntary Retirement Incentive Program (VRIP) for certain Corporate employees, which is being funded from the assets of the Company's pension plan. The total cost arising from the Company’s Supplemental Executive Retirement Plan (SERP), including a portion included in discontinued operations, consists of the following components: Three Months Ended September 30 Nine Months Ended September 30 (in thousands) 2015 2014 2015 2014 Service cost $ 464 $ 373 $ 1,482 $ 1,119 Interest cost 1,140 1,086 3,410 3,257 Amortization of prior service cost 115 12 343 35 Recognized actuarial loss 630 374 2,385 1,124 Net Periodic Cost 2,349 1,845 7,620 5,535 Special separation benefit expense — 2,422 — 2,422 Total Cost $ 2,349 $ 4,267 $ 7,620 $ 7,957 For the nine months ended September 30, 2015 , the net periodic cost for the Company's SERP, as reported above, includes costs of $0.2 million reported in discontinued operations. For the three and nine months ended September 30, 2014 , the net periodic cost for the Company's SERP, as reported above, includes costs of $0.1 million and $0.4 million , respectively, reported in discontinued operations. Defined Benefit Plan Assets. The Company’s defined benefit pension obligations are funded by a portfolio made up of a relatively small number of stocks and high-quality fixed-income securities that are held by a third-party trustee. The assets of the Company’s pension plan were allocated as follows: As of September 30, December 31, U.S. equities 54 % 59 % U.S. fixed income 13 % 13 % International equities 33 % 28 % 100 % 100 % Essentially all of the assets are actively managed by two investment companies. The goal of the investment managers is to produce moderate long-term growth in the value of these assets, while protecting them against large decreases in value. Both of these managers may invest in a combination of equity and fixed-income securities and cash. The managers are not permitted to invest in securities of the Company or in alternative investments. The investment managers cannot invest more than 20% of the assets at the time of purchase in the stock of Berkshire Hathaway or more than 10% of the assets in the securities of any other single issuer, except for obligations of the U.S. Government, without receiving prior approval by the Plan administrator. As of September 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 September 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 September 30, 2015 , the pension plan held common stock in one investment that exceeded 10% of total plan assets, valued at $580.6 million , or 24% 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 September 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 $582.0 million and $468.0 million at September 30, 2015 and December 31, 2014 , respectively, or approximately 24% 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 September 30 Nine Months Ended September 30 (in thousands) 2015 2014 2015 2014 Service cost $ 333 $ 375 $ 999 $ 1,125 Interest cost 325 362 974 1,086 Amortization of prior service credit (126 ) (196 ) (377 ) (587 ) Recognized actuarial gain (249 ) (519 ) (747 ) (1,557 ) Net Periodic Cost $ 283 $ 22 $ 849 $ 67 |
Other Non-Operating (Expense) I
Other Non-Operating (Expense) Income | 9 Months Ended |
Sep. 30, 2015 | |
Other Nonoperating Income (Expense) [Abstract] | |
Other Non-Operating Income (Expense) | OTHER NON-OPERATING (EXPENSE) INCOME A summary of non-operating (expense) income is as follows: Three Months Ended Nine Months Ended (in thousands) 2015 2014 2015 2014 Net losses on sales of businesses $ (26,253 ) $ — $ (23,335 ) $ — Foreign currency loss, net (12,972 ) (10,564 ) (16,191 ) (2,618 ) Gain on formation of joint venture — — 5,972 — Additional gain on sale of Classified Ventures — — 4,827 — Gain on Berkshire marketable equity securities exchange — — — 266,733 Gain on sale of headquarters building — — — 127,670 Losses on sales or write-down of marketable equity securities — — — (3,044 ) Other, net (1,233 ) (159 ) (1,158 ) 1,923 Total Other Non-Operating (Expense) Income $ (40,458 ) $ (10,723 ) $ (29,885 ) $ 390,664 In the third quarter of 2015, Kaplan sold the KHEC Campuses business, and Franklyn Scholar, which was part of Kaplan International, for a loss of $26.3 million . 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 (Loss) | 9 Months Ended |
Sep. 30, 2015 | |
Accumulated Other Comprehensive Income (Loss), Net of Tax [Abstract] | |
Accumulated Other Comprehensive Income (Loss) | ACCUMULATED OTHER COMPREHENSIVE INCOME (LOSS) The other comprehensive loss consists of the following components: Three Months Ended September 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 $ (10,548 ) $ — $ (10,548 ) $ (9,777 ) $ — $ (9,777 ) Adjustment for sales of businesses with foreign operations 6,026 — 6,026 — — — (4,522 ) — (4,522 ) (9,777 ) — (9,777 ) Unrealized gains on available-for-sale securities: Unrealized gains for the period, net 3,836 (1,535 ) 2,301 9,734 (3,894 ) 5,840 Pension and other postretirement plans: Amortization of net prior service cost (credit) included in net income 68 (27 ) 41 (101 ) 41 (60 ) Amortization of net actuarial gain included in net income (5,676 ) 2,271 (3,405 ) (7,425 ) 2,970 (4,455 ) Curtailment gains included in net income 51 (21 ) 30 — — — Curtailment and settlement included in distribution to Cable ONE 1,403 (561 ) 842 — — — (4,154 ) 1,662 (2,492 ) (7,526 ) 3,011 (4,515 ) Cash flow hedge: Gain for the period — — — 230 (92 ) 138 Other Comprehensive Loss $ (4,840 ) $ 127 $ (4,713 ) $ (7,339 ) $ (975 ) $ (8,314 ) Nine Months Ended September 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 $ (17,387 ) $ — $ (17,387 ) $ (7,111 ) $ — $ (7,111 ) Adjustment for sales of businesses with foreign operations 5,501 — 5,501 — — — (11,886 ) — (11,886 ) (7,111 ) — (7,111 ) Unrealized (losses) gains on available-for-sale securities: Unrealized (losses) gains for the period, net (16,497 ) 6,599 (9,898 ) 46,139 (18,456 ) 27,683 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 ) (16,497 ) 6,599 (9,898 ) (219,135 ) 87,654 (131,481 ) Pension and other postretirement plans: Amortization of net prior service cost (credit) included in net income 207 (82 ) 125 (305 ) 122 (183 ) Amortization of net actuarial gain included in net income (4,419 ) 1,768 (2,651 ) (22,032 ) 8,813 (13,219 ) Curtailment gains included in net income 51 (21 ) 30 — — — Curtailment and settlement included in distribution to Cable ONE 1,403 (561 ) 842 — — — (2,758 ) 1,104 (1,654 ) (22,337 ) 8,935 (13,402 ) Cash flow hedge: Gain for the period 179 (71 ) 108 641 (256 ) 385 Other Comprehensive Loss $ (30,962 ) $ 7,632 $ (23,330 ) $ (247,942 ) $ 96,333 $ (151,609 ) The accumulated balances related to each component of other comprehensive (loss) 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 (17,387 ) (9,898 ) 842 29 (26,414 ) Net amount reclassified from accumulated other comprehensive income 5,501 — (2,496 ) 79 3,084 Other comprehensive (loss) income, net of tax (11,886 ) (9,898 ) (1,654 ) 108 (23,330 ) Balance as of September 30, 2015 $ (3,338 ) $ 42,232 $ 391,256 $ — $ 430,150 The amounts and line items of reclassifications out of Accumulated Other Comprehensive (Loss) Income are as follows: Three Months Ended Nine 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 $ 6,026 $ — $ 5,501 $ — Other (expense) income, net Unrealized Gains on Available-for-sale Securities: Realized gain for the period — — — (265,274 ) Other (expense) income, net — — — 106,110 (1) — — — (159,164 ) Net of Tax Pension and Other Postretirement Plans: Amortization of net prior service cost (credit) 68 (101 ) 207 (305 ) (2) Amortization of net actuarial gain (5,676 ) (7,425 ) (4,419 ) (22,032 ) (2) Curtailment gains 51 — 51 — (2) (5,557 ) (7,526 ) (4,161 ) (22,337 ) Before tax 2,223 3,011 1,665 8,935 (Benefit) Provision for Income Taxes (3,334 ) (4,515 ) (2,496 ) (13,402 ) Net of Tax Cash Flow Hedge — 217 132 645 Interest expense — (87 ) (53 ) (258 ) (Benefit) Provision for Income Taxes — 130 79 387 Net of Tax Total reclassification for the period $ 2,692 $ (4,385 ) $ 3,084 $ (172,179 ) Net of Tax ____________ (1) Benefits of $1.2 million were recorded in Provision for Income Taxes related to the realized loss for the nine months ended September 30, 2014. The remaining $107.3 million for the nine months ended September 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 | 9 Months Ended |
Sep. 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. In September 2015, Diaz filed an amended complaint and Kaplan filed a motion to dismiss. 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. ED Program Reviews. The U.S. Department of Education (ED) has undertaken program reviews at various KHE locations. Currently, there are five open program reviews, four of which are at campuses that were part of the KHE Campuses business, including the ED’s final reports on the program reviews at KHE’s Broomall, PA, and Pittsburgh, PA, locations. Kaplan retains responsibility for any financial obligation resulting from the ED program reviews at the KHE Campuses business. The ED conducted a program review at Kaplan University in the first quarter of 2015, covering all aspects of Kaplan University's financial aid systems and on the standards for determining student attendance in online programs. A failure to properly determine student attendance under the federal Title IV rules could result in a failure to refund the proper amount of Title IV aid to the ED when a student withdraws from the program. 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 | 9 Months Ended |
Sep. 30, 2015 | |
Segment Reporting [Abstract] | |
Business Segments | BUSINESS SEGMENTS The Company has five reportable segments: Kaplan Higher Education, Kaplan Test Preparation, Kaplan International, television broadcasting and other businesses. Cable. Due to the spin-off of Cable ONE on July 1, 2015, the cable division is no longer included as a separate segment as its results have been reclassified to discontinued operations, net of tax, for all periods presented. The following table summarizes the 2015 quarterly financial information related to each of the Company’s business segments: March 31, June 30, September 30, (in thousands) 2015 2015 2015 Operating Revenues Education $ 500,602 $ 523,625 $ 481,746 Television broadcasting 83,564 90,753 89,693 Other businesses 63,259 66,512 70,052 Corporate office — — — Intersegment elimination — — (59 ) $ 647,425 $ 680,890 $ 641,432 Income (Loss) From Operations Education $ (22,849 ) $ 15,848 $ (242,777 ) Television broadcasting 38,562 42,014 40,526 Other businesses (5,162 ) (2,161 ) (3,059 ) Corporate office (1,689 ) 524 (8,413 ) $ 8,862 $ 56,225 $ (213,723 ) Equity in (Losses) Earnings of Affiliates, Net (404 ) (353 ) 95 Interest Expense, Net (7,942 ) (8,025 ) (7,349 ) Other (Expense) Income, Net (1,105 ) 11,678 (40,458 ) (Loss) Income from Continuing Operations Before Income Taxes $ (589 ) $ 59,525 $ (261,435 ) Depreciation of Property, Plant and Equipment Education $ 18,528 $ 21,980 $ 10,637 Television broadcasting 2,109 2,125 2,237 Other businesses 1,302 1,254 1,335 Corporate office 258 250 251 $ 22,197 $ 25,609 $ 14,460 Amortization of Intangible Assets and Impairment of Goodwill and Other Long-lived Assets Education $ 1,507 $ 8,343 $ 249,930 Television broadcasting 63 63 63 Other businesses 3,168 3,117 3,110 Corporate office — — — $ 4,738 $ 11,523 $ 253,103 Net Pension (Credit) Expense Education $ 3,947 $ 3,947 $ 7,525 Television broadcasting 391 391 425 Other businesses 193 186 328 Corporate office (16,938 ) (16,939 ) (24,533 ) $ (12,407 ) $ (12,415 ) $ (16,255 ) The following table summarizes the 2014 quarterly financial information related to each of the Company’s business segments: March 31, June 30, September 30, December 31, (in thousands) 2014 2014 2014 2014 Operating Revenues Education $ 522,154 $ 542,964 $ 543,918 $ 551,381 Television broadcasting 85,651 88,297 87,442 102,446 Other businesses 24,913 42,351 71,845 73,798 Corporate office — — — — Intersegment elimination (98 ) (30 ) — — $ 632,620 $ 673,582 $ 703,205 $ 727,625 Income (Loss) from Operations Education $ 1,862 $ 17,637 $ 12,551 $ 33,413 Television broadcasting 44,386 44,088 44,979 54,380 Other businesses (10,747 ) (6,995 ) (9,292 ) 5,948 Corporate office 2,206 50 (7,029 ) 5,283 $ 37,707 $ 54,780 $ 41,209 $ 99,024 Equity in Earnings of Affiliates, Net 4,052 91,503 4,613 202 Interest Expense, Net (8,189 ) (7,884 ) (8,769 ) (8,555 ) Other Expense, Net 133,273 268,114 (10,723 ) 387,346 Income from Continuing Operations Before Income Taxes $ 166,843 $ 406,513 $ 26,330 $ 478,017 Depreciation of Property, Plant and Equipment Education $ 16,416 $ 15,372 $ 15,237 $ 14,713 Television broadcasting 1,994 2,039 2,148 2,228 Other businesses 520 780 1,201 1,430 Corporate office 500 10 78 247 $ 19,430 $ 18,201 $ 18,664 $ 18,618 Amortization of Intangible Assets and Impairment of Intangibles and Other Long-lived Assets Education $ 1,924 $ 1,798 $ 1,927 $ 19,292 Television broadcasting — — — 32 Other businesses 758 1,138 5,427 3,193 Corporate office — — — — $ 2,682 $ 2,936 $ 7,354 $ 22,517 Net Pension (Credit) Expense Education $ 4,143 $ 3,566 $ 3,854 $ 3,855 Television broadcasting 320 358 338 338 Other businesses 164 202 191 191 Corporate office (17,679 ) (22,933 ) (18,620 ) (23,070 ) $ (13,052 ) $ (18,807 ) $ (14,237 ) $ (18,686 ) The following table summarizes financial information related to each of the Company's business segments: Nine Months Ended September 30 Year Ended December 31 (in thousands) 2015 2014 2014 2013 Operating Revenues Education $ 1,505,973 $ 1,609,036 $ 2,160,417 $ 2,163,734 Television broadcasting 264,010 261,390 363,836 308,306 Other businesses 199,823 139,109 212,907 128,803 Corporate office — — — — Intersegment elimination (59 ) (128 ) (128 ) (241 ) $ 1,969,747 $ 2,009,407 $ 2,737,032 $ 2,600,602 (Loss) Income from Operations Education $ (249,778 ) $ 32,050 $ 65,463 $ 50,989 Television broadcasting 121,102 133,452 187,833 145,192 Other businesses (10,382 ) (27,034 ) (21,086 ) (23,468 ) Corporate office (9,578 ) (4,773 ) 510 (23,279 ) $ (148,636 ) $ 133,695 $ 232,720 $ 149,434 Equity in (Losses) Earnings of Affiliates, Net (662 ) 100,168 100,370 13,215 Interest Expense, Net (23,316 ) (24,841 ) (33,397 ) (33,667 ) Other (Expense) Income, Net (29,885 ) 390,664 778,010 (23,751 ) (Loss) Income from Continuing Operations Before Income Taxes $ (202,499 ) $ 599,686 $ 1,077,703 $ 105,231 Depreciation of Property, Plant and Equipment Education $ 51,145 $ 47,024 $ 61,737 $ 89,622 Television broadcasting 6,471 6,181 8,409 8,746 Other businesses 3,891 2,501 3,931 2,177 Corporate office 759 589 836 626 $ 62,266 $ 56,295 $ 74,913 $ 101,171 Amortization of Intangible Assets and Impairment of Goodwill and Other Long-lived Assets Education $ 259,780 $ 5,649 $ 24,941 $ 11,753 Television broadcasting 189 — 32 — Other businesses 9,395 7,323 10,516 3,416 Corporate office — — — — $ 269,364 $ 12,972 $ 35,489 $ 15,169 Net Pension (Credit) Expense Education $ 15,419 $ 11,563 $ 15,418 $ 16,538 Television broadcasting 1,207 1,016 1,355 3,961 Other businesses 707 557 748 610 Corporate office (58,410 ) (59,231 ) (82,301 ) (41,836 ) $ (41,077 ) $ (46,095 ) $ (64,780 ) $ (20,727 ) Asset information for the Company’s business segments are as follows: As of (in thousands) September 30, December 31, Identifiable Assets Education $ 1,249,359 $ 1,781,543 Television broadcasting 309,232 305,426 Other businesses 472,272 518,807 Corporate office 938,195 1,778,391 $ 2,969,058 $ 4,384,167 Investments in Marketable Equity Securities 312,892 193,793 Investments in Affiliates 53,198 19,811 Prepaid Pension Cost 1,189,181 1,152,488 Assets Held for Sale — 2,060 Total Assets $ 4,524,329 $ 5,752,319 The Company’s education division comprises the following operating segments: Three Months Ended Nine Months Ended September 30 September 30 (in thousands) 2015 2014 2015 2014 Operating Revenues Higher education $ 203,529 $ 249,882 $ 681,814 $ 755,597 Test preparation 83,706 85,108 233,313 234,010 Kaplan international 192,702 207,615 585,486 615,507 Kaplan corporate and other 1,905 1,492 5,723 4,891 Intersegment elimination (96 ) (179 ) (363 ) (969 ) $ 481,746 $ 543,918 $ 1,505,973 $ 1,609,036 Income (Loss) from Operations Higher education $ 3,153 $ 5,391 $ 28,510 $ 39,487 Test preparation 13,620 6,980 16,365 (3,552 ) Kaplan international 8,295 13,853 33,585 40,609 Kaplan corporate and other (267,882 ) (13,651 ) (328,333 ) (44,608 ) Intersegment elimination 37 (22 ) 95 114 $ (242,777 ) $ 12,551 $ (249,778 ) $ 32,050 Depreciation of Property, Plant and Equipment Higher education $ 4,066 $ 7,320 $ 13,688 $ 22,140 Test preparation 2,052 2,865 7,205 9,721 Kaplan international 4,277 4,951 14,004 14,546 Kaplan corporate and other 242 101 16,248 617 $ 10,637 $ 15,237 $ 51,145 $ 47,024 Amortization of Intangible Assets $ 1,339 $ 1,927 $ 4,313 $ 5,649 Impairment of Goodwill and Other Long-lived Assets $ 248,591 $ — $ 255,467 $ — Pension Expense Higher education $ 3,964 $ 2,628 $ 9,028 $ 7,885 Test preparation 775 722 2,325 2,166 Kaplan international 114 89 326 267 Kaplan corporate and other 2,672 415 3,740 1,245 $ 7,525 $ 3,854 $ 15,419 $ 11,563 In the third quarter of 2015, a favorable $3.0 million out of period revenue adjustment was included at the test preparation segment that related to prior periods from 2011 through the second 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 2015 and prior years and the related interim periods, based on its consideration of quantitative and qualitative factors. Identifiable assets for the Company’s education division consist of the following: As of (in thousands) September 30, December 31, Identifiable assets Higher education $ 227,406 $ 749,421 Test preparation 147,998 167,055 Kaplan international 811,672 838,148 Kaplan corporate and other 62,283 26,919 $ 1,249,359 $ 1,781,543 |
Organization, Basis of Presen20
Organization, Basis of Presentation And Recent Accounting Pronouncements (Policies) | 9 Months Ended |
Sep. 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 statement 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 nine months ended September 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. |
Organization, Basis of Presen21
Organization, Basis of Presentation and Recent Accounting Pronouncements (Tables) | 9 Months Ended |
Sep. 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: Nine Months Ended September 30, 2014 As Previously As (in thousands) Reported Revision Revised Cash Flows from Operating Activities Increase (decrease) in Accounts Payable and Accrued Liabilities $ (56,666 ) $ 9,993 $ (46,673 ) Net Cash Provided by Operating Activities 336,877 9,993 346,870 Cash Flows from Investing Activities Purchases of Property, Plant and Equipment $ (162,441 ) $ (9,993 ) $ (172,434 ) Net Cash Used in Investing Activities (84,265 ) (9,993 ) (94,258 ) |
Discontinued Operations (Tables
Discontinued Operations (Tables) | 9 Months Ended |
Sep. 30, 2015 | |
Income Statement, Balance Sheet and Additional Disclosures by Disposal Groups, Including Discontinued Operations [Line Items] | |
Summarized Discontinued Operations Information | The summarized income (loss) from discontinued operations, net of tax, is presented below: Three Months Ended Nine Months Ended (in thousands) 2015 2014 2015 2014 Operating revenues $ — $ 196,960 $ 397,404 $ 647,128 Operating costs and expenses 1,662 (157,819 ) (325,379 ) (511,981 ) Operating income 1,662 39,141 72,025 135,147 Non-operating income (expense) — 75,217 (1,288 ) 75,153 Income from discontinued operations 1,662 114,358 70,737 210,300 Provision for income taxes 1,283 42,331 27,783 77,271 Net Income from Discontinued Operations 379 72,027 42,954 133,029 (Loss) gain on sales of discontinued operations — (4,352 ) (732 ) 349,875 Expense (benefit) from income taxes on sales of discontinued operations — 1,466 52 (16,304 ) Income from Discontinued Operations, Net of Tax $ 379 $ 66,209 $ 42,170 $ 499,208 |
CY Quarterly Operating Results After Reclassifying Certain Operations As Discontinued Operations | The following table summarizes the 2015 quarterly operating results of the Company following the reclassification of the operations discussed above as discontinued operations: March 31, June 30, (in thousands, except per share amounts) 2015 2015 Operating Revenues Education $ 500,602 $ 523,625 Advertising 66,454 70,137 Other 80,369 87,128 647,425 680,890 Operating Costs and Expenses Operating 309,223 311,121 Selling, general and administrative 302,405 276,412 Depreciation of property, plant and equipment 22,197 25,609 Amortization of intangible assets 4,738 4,647 Impairment of long-lived assets — 6,876 638,563 624,665 Income from Operations 8,862 56,225 Equity in losses of affiliates, net (404 ) (353 ) Interest income 559 323 Interest expense (8,501 ) (8,348 ) Other (expense) income, net (1,105 ) 11,678 (Loss) Income from Continuing Operations before Income Taxes (589 ) 59,525 Provision for Income Taxes 900 19,600 (Loss) Income from Continuing Operations (1,489 ) 39,925 Income from Discontinued Operations, Net of Tax 23,289 18,502 Net Income 21,800 58,427 Net Income Attributable to Noncontrolling Interests (774 ) (434 ) Net Income Attributable to Graham Holdings Company 21,026 57,993 Redeemable Preferred Stock Dividends (420 ) (211 ) Net Income Attributable to Graham Holdings Company Common Stockholders $ 20,606 $ 57,782 Amounts Attributable to Graham Holdings Company Common Stockholders (Loss) income from continuing operations $ (2,683 ) $ 39,280 Income from discontinued operations, net of tax 23,289 18,502 Net income attributable to Graham Holdings Company common stockholders $ 20,606 $ 57,782 Per Share Information Attributable to Graham Holdings Company Common Stockholders Basic (loss) income per common share from continuing operations $ (0.58 ) $ 6.74 Basic income per common share from discontinued operations 4.09 3.18 Basic net income per common share $ 3.51 $ 9.92 Diluted (loss) income per common share from continuing operations $ (0.58 ) $ 6.71 Diluted income per common share from discontinued operations 4.06 3.16 Diluted net income per common share $ 3.48 $ 9.87 |
2014 Quarterly Operating Results After Reclassifying Certain Operations As Discontinued Operations | The following table summarizes the 2014 quarterly operating results of the Company following the reclassification of the operations discussed above as discontinued operations: March 31, June 30, September 30, December 31, (in thousands, except per share amounts) 2014 2014 2014 2014 Operating Revenues Education $ 522,154 $ 542,964 $ 543,918 $ 551,381 Advertising 70,115 73,587 72,951 91,561 Other 40,351 57,031 86,336 84,683 632,620 673,582 703,205 727,625 Operating Costs and Expenses Operating 296,507 321,163 326,395 317,687 Selling, general and administrative 276,294 276,502 309,583 269,779 Depreciation of property, plant and equipment 19,430 18,201 18,664 18,618 Amortization of intangible assets 2,682 2,936 7,354 5,215 Impairment of intangible and other long-lived assets — — — 17,302 594,913 618,802 661,996 628,601 Income from Operations 37,707 54,780 41,209 99,024 Equity in earnings of affiliates, net 4,052 91,503 4,613 202 Interest income 599 641 529 367 Interest expense (8,788 ) (8,525 ) (9,298 ) (8,922 ) Other (expense) income, net 133,273 268,114 (10,723 ) 387,346 Income from Continuing Operations before Income Taxes 166,843 406,513 26,330 478,017 Provision for Income Taxes 62,300 61,900 16,100 172,000 Income from Continuing Operations 104,543 344,613 10,230 306,017 Income from Discontinued Operations, Net of Tax 27,762 405,237 66,209 28,649 Net Income 132,305 749,850 76,439 334,666 Net Loss (Income) Attributable to Noncontrolling Interests 219 499 121 (256 ) Net Income Attributable to Graham Holdings Company 132,524 750,349 76,560 334,410 Redeemable Preferred Stock Dividends (426 ) (212 ) (209 ) — Net Income Attributable to Graham Holdings Company Common Stockholders $ 132,098 $ 750,137 $ 76,351 $ 334,410 Amounts Attributable to Graham Holdings Company Common Stockholders Income from continuing operations $ 104,336 $ 344,900 $ 10,142 $ 305,761 Income from discontinued operations, net of tax 27,762 405,237 66,209 28,649 Net income attributable to Graham Holdings Company common stockholders $ 132,098 $ 750,137 $ 76,351 $ 334,410 Per Share Information Attributable to Graham Holdings Company Common Stockholders Basic income per common share from continuing operations $ 14.10 $ 46.35 $ 1.73 $ 52.76 Basic income per common share from discontinued operations 3.75 54.45 11.45 4.95 Basic net income per common share $ 17.85 $ 100.80 $ 13.18 $ 57.71 Diluted income per common share from continuing operations $ 14.05 $ 46.20 $ 1.73 $ 52.48 Diluted income per common share from discontinued operations 3.74 54.28 11.39 4.93 Diluted net income per common share $ 17.79 $ 100.48 $ 13.12 $ 57.41 |
Yearly Operating Results After Reclassifying Certain Operations As Discontinued Operations | The following table summarizes the annual operating results of the Company following the reclassification of operations discussed above as discontinued operations: (in thousands, except per share amounts) 2014 2013 Operating Revenues Education $ 2,160,417 $ 2,163,734 Advertising 308,214 275,024 Other 268,401 161,844 2,737,032 2,600,602 Operating Costs and Expenses Operating 1,261,753 1,210,863 Selling, general and administrative 1,132,157 1,123,965 Depreciation of property, plant and equipment 74,913 101,171 Amortization of intangible assets 18,187 11,919 Impairment of intangible and other long-lived assets 17,302 3,250 2,504,312 2,451,168 Income from Operations 232,720 149,434 Equity in earnings of affiliates, net 100,370 13,215 Interest income 2,136 2,264 Interest expense (35,533 ) (35,931 ) Other income (expense), net 778,010 (23,751 ) Income from Continuing Operations before Income Taxes 1,077,703 105,231 Provision for Income Taxes 312,300 40,500 Income from Continuing Operations 765,403 64,731 Income from Discontinued Operations, Net of Tax 527,857 172,614 Net Income 1,293,260 237,345 Net Loss (Income) Attributable to Noncontrolling Interests 583 (480 ) Net Income Attributable to Graham Holdings Company 1,293,843 236,865 Redeemable Preferred Stock Dividends (847 ) (855 ) Net Income Attributable to Graham Holdings Company Common Stockholders $ 1,292,996 $ 236,010 Amounts Attributable to Graham Holdings Company Common Stockholders Income from continuing operations $ 765,139 $ 63,396 Income from discontinued operations, net of tax 527,857 172,614 Net income attributable to Graham Holdings Company common stockholders $ 1,292,996 $ 236,010 Per Share Information Attributable to Graham Holdings Company Common Stockholders Basic income per common share from continuing operations $ 115.88 $ 8.62 Basic income per common share from discontinued operations 79.93 23.48 Basic net income per common share $ 195.81 $ 32.10 Diluted income per common share from continuing operations $ 115.40 $ 8.61 Diluted income per common share from discontinued operations 79.63 23.44 Diluted net income per common share $ 195.03 $ 32.05 |
Cable Spin-Off [Member] | |
Income Statement, Balance Sheet and Additional Disclosures by Disposal Groups, Including Discontinued Operations [Line Items] | |
Summarized Discontinued Operations Information | On July 1, 2015, the Company divested the following assets and liabilities which net to $406.5 million , or $312.3 million net of cash retained by Cable ONE on the Distribution Date: As of (in thousands) July 1, 2015 Cash and cash equivalents $ 94,115 Accounts receivable, net 29,778 Other current assets 14,182 Total current assets 138,075 Property, plant and equipments, net 612,812 Goodwill, net 85,488 Indefinite-lived intangible assets, net 496,321 Amortized intangible assets, net 510 Deferred charges and other assets 22,541 Total Assets $ 1,355,747 Accounts payable and accrued liabilities $ 70,920 Income taxes payable 2,962 Deferred revenue 21,883 Short-term borrowings 2,500 Total current liabilities 98,265 Accrued compensation and related benefits 24,227 Other liabilities 57 Deferred income taxes 279,245 Long-term debt 547,500 Total Liabilities $ 949,294 Net assets divested in the Spin-Off $ 406,453 |
Discontinued Operations Cash Flows | Cash flows from Cable ONE are as follows: Three Months Ended Nine Months Ended September 30 September 30 (in thousands) 2015 2014 2015 2014 Net Cash (Used in) Provided by Operating Activities $ (4,468 ) $ 59,863 $ 111,665 $ 187,153 Net Cash Provided by (Used in) Investing Activities — 51,283 (74,416 ) (35,705 ) |
Investments (Tables)
Investments (Tables) | 9 Months Ended |
Sep. 30, 2015 | |
Investments [Abstract] | |
Investments in Marketable Equity Securities | Investments in marketable equity securities comprised the following: As of September 30, December 31, (in thousands) Total cost $ 242,505 $ 106,909 Gross unrealized gains 74,263 86,884 Gross unrealized losses (3,876 ) — Total Fair Value $ 312,892 $ 193,793 |
Acquisitions, Dispositions, E24
Acquisitions, Dispositions, Exchanges and Other (Tables) | 9 Months Ended |
Sep. 30, 2015 | |
Acqusitions and Dispositions [Abstract] | |
Information related to Disposal Group Held for Sale | The revenue and operating losses related to schools that are being sold as part of the ECA transaction are as follows: Three Months Ended Nine Months Ended September 30 September 30 (in thousands) 2015 2014 2015 2014 Revenue $ 43,121 $ 66,314 $ 167,244 $ 202,577 Operating loss 629 (2,474 ) (6,672 ) (9,981 ) |
Goodwill and Other Intangible25
Goodwill and Other Intangible Assets (Tables) | 9 Months Ended |
Sep. 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 Impairment (248,591 ) — — — (248,591 ) Dispositions (33,502 ) (85,488 ) — (7,819 ) (126,809 ) Foreign currency exchange rate changes (30,524 ) — — — (30,524 ) Balance as of September 30, 2015 Goodwill 993,200 — 168,345 142,743 1,304,288 Accumulated impairment losses (350,850 ) — — (6,082 ) (356,932 ) $ 642,350 $ — $ 168,345 $ 136,661 $ 947,356 |
Other Intangible Assets | Other intangible assets consist of the following: As of September 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 $ 1,232 $ 449 $ 2,500 $ 1,590 $ 910 Student and customer relationships 2–10 years 86,839 37,528 49,311 104,685 47,539 57,146 Databases and technology 3–5 years 10,518 9,367 1,151 10,501 8,827 1,674 Trade names and trademarks 2–10 years 53,140 22,709 30,431 55,452 19,724 35,728 Other 1–6 years (1) 2,184 1,712 472 8,969 7,480 1,489 $ 154,362 $ 72,548 $ 81,814 $ 182,107 $ 85,160 $ 96,947 Indefinite-Lived Intangible Assets Franchise agreements $ — $ 496,321 Licensure and accreditation 994 6,781 Other 13,651 13,651 $ 14,645 $ 516,753 ___________ _ (1) The Company’s other amortized intangible assets maximum useful life was 25 years as of December 31, 2014. |
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 Impairment (248,591 ) — — (248,591 ) Dispositions (28,738 ) — (4,764 ) (33,502 ) Foreign currency exchange rate changes (280 ) — (30,244 ) (30,524 ) Balance as of September 30, 2015 Goodwill 380,866 166,098 446,236 993,200 Accumulated impairment losses (248,591 ) (102,259 ) — (350,850 ) $ 132,275 $ 63,839 $ 446,236 $ 642,350 |
Debt (Tables)
Debt (Tables) | 9 Months Ended |
Sep. 30, 2015 | |
Debt Disclosure [Abstract] | |
Components of Debt | The Company’s borrowings consist of the following: As of September 30, December 31, (in thousands) 7.25% unsecured notes due February 1, 2019 $ 398,619 $ 398,308 AUD Revolving credit borrowing — 40,927 Other indebtedness 4,203 6,685 Total Debt 402,822 445,920 Less: current portion (3,000 ) (46,375 ) Total Long-Term Debt $ 399,822 $ 399,545 |
Fair Value Measurements (Tables
Fair Value Measurements (Tables) | 9 Months Ended |
Sep. 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 September 30, 2015 (in thousands) Level 1 Level 2 Total Assets Money market investments (1) $ — $ 554,913 $ 554,913 Commercial paper (2) 249,827 — 249,827 Marketable equity securities (3) 312,892 — 312,892 Other current investments (4) 16,031 14,153 30,184 Total Financial Assets $ 578,750 $ 569,066 $ 1,147,816 Liabilities Deferred compensation plan liabilities (5) $ — $ 48,765 $ 48,765 ___________ _ (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. 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 Interest rate swap (6) — 179 179 Total Financial Liabilities $ — $ 70,840 $ 70,840 ____________ (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. |
Stockholders' Equity (Tables)
Stockholders' Equity (Tables) | 9 Months Ended |
Sep. 30, 2015 | |
Stockholders' Equity Note [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 (loss) earnings per share computations using the two-class method: Three Months Ended Nine Months Ended (in thousands, except per share amounts) 2015 2014 2015 2014 Numerator: Numerator for basic (loss) earnings per share: (Loss) income from continuing operations attributable to Graham Holdings Company common stockholders $ (231,222 ) $ 10,142 $ (194,625 ) $ 459,378 Less: Dividends-common stock outstanding and unvested restricted shares (6,736 ) (14,773 ) (53,090 ) (67,267 ) Undistributed (loss) earnings (237,958 ) (4,631 ) (247,715 ) 392,111 Percent allocated to common stockholders (1) 100.00 % 100.00 % 100.00 % 97.89 % (237,958 ) (4,631 ) (247,715 ) 383,842 Add: Dividends-common stock outstanding 6,621 14,462 52,180 66,021 Numerator for basic (loss) earnings per share $ (231,337 ) $ 9,831 $ (195,535 ) $ 449,863 Add: Additional undistributed earnings due to dilutive stock options — — — 36 Numerator for diluted (loss) earnings per share $ (231,337 ) $ 9,831 $ (195,535 ) $ 449,899 Denominator: Denominator for basic (loss) earnings per share: Weighted average shares outstanding 5,738 5,671 5,721 6,737 Add: Effect of dilutive stock options — 25 — 25 Denominator for diluted (loss) earnings per share 5,738 5,696 5,721 6,762 Graham Holdings Company Common Stockholders: Basic (loss) earnings per share from continuing operations $ (40.32 ) $ 1.73 $ (34.18 ) $ 66.77 Diluted (loss) earnings per share from continuing operations $ (40.32 ) $ 1.73 $ (34.18 ) $ 66.52 ____________ (1) Percent of undistributed losses allocated to common stockholders is 100% in the third quarter of 2015 and 2014 and first nine months of 2015 as participating securities are not contractually obligated to share in losses. |
Antidilutive Weighted Average Restricted Stock | Diluted (loss) 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 Nine Months Ended (in thousands) 2015 2014 2015 2014 Weighted average restricted stock 50 61 53 61 Weighted average stock options 49 — 37 — |
Pension and Postretirement Pl29
Pension and Postretirement Plans (Tables) | 9 Months Ended |
Sep. 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 September 30 Nine Months Ended September 30 (in thousands) 2015 2014 2015 2014 Service cost $ 6,090 $ 6,976 $ 20,593 $ 21,489 Interest cost 13,516 12,894 39,077 38,870 Expected return on assets (33,673 ) (29,877 ) (96,771 ) (90,644 ) Amortization of prior service cost 79 83 241 247 Recognized actuarial gain (6,057 ) (7,280 ) (6,057 ) (21,599 ) Net Periodic Benefit (20,045 ) (17,204 ) (42,917 ) (51,637 ) Curtailment gains (3,267 ) — (3,267 ) — Early retirement programs and special separation benefit expense 3,734 3,884 3,734 8,374 Total Benefit $ (19,578 ) $ (13,320 ) $ (42,450 ) $ (43,263 ) |
Schedule of Allocation of Plan Assets | The assets of the Company’s pension plan were allocated as follows: As of September 30, December 31, U.S. equities 54 % 59 % U.S. fixed income 13 % 13 % International equities 33 % 28 % 100 % 100 % |
Supplemental Executive Retirement Plan (SERP) [Member] | |
Schedule of Net Benefit Costs | The total cost arising from the Company’s Supplemental Executive Retirement Plan (SERP), including a portion included in discontinued operations, consists of the following components: Three Months Ended September 30 Nine Months Ended September 30 (in thousands) 2015 2014 2015 2014 Service cost $ 464 $ 373 $ 1,482 $ 1,119 Interest cost 1,140 1,086 3,410 3,257 Amortization of prior service cost 115 12 343 35 Recognized actuarial loss 630 374 2,385 1,124 Net Periodic Cost 2,349 1,845 7,620 5,535 Special separation benefit expense — 2,422 — 2,422 Total Cost $ 2,349 $ 4,267 $ 7,620 $ 7,957 |
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 September 30 Nine Months Ended September 30 (in thousands) 2015 2014 2015 2014 Service cost $ 333 $ 375 $ 999 $ 1,125 Interest cost 325 362 974 1,086 Amortization of prior service credit (126 ) (196 ) (377 ) (587 ) Recognized actuarial gain (249 ) (519 ) (747 ) (1,557 ) Net Periodic Cost $ 283 $ 22 $ 849 $ 67 |
Other Non-Operating (Expense)30
Other Non-Operating (Expense) Income (Tables) | 9 Months Ended |
Sep. 30, 2015 | |
Other Nonoperating Income (Expense) [Abstract] | |
Summary of Other Non-Operating (Expense) Income | A summary of non-operating (expense) income is as follows: Three Months Ended Nine Months Ended (in thousands) 2015 2014 2015 2014 Net losses on sales of businesses $ (26,253 ) $ — $ (23,335 ) $ — Foreign currency loss, net (12,972 ) (10,564 ) (16,191 ) (2,618 ) Gain on formation of joint venture — — 5,972 — Additional gain on sale of Classified Ventures — — 4,827 — Gain on Berkshire marketable equity securities exchange — — — 266,733 Gain on sale of headquarters building — — — 127,670 Losses on sales or write-down of marketable equity securities — — — (3,044 ) Other, net (1,233 ) (159 ) (1,158 ) 1,923 Total Other Non-Operating (Expense) Income $ (40,458 ) $ (10,723 ) $ (29,885 ) $ 390,664 |
Accumulated Other Comprehensi31
Accumulated Other Comprehensive Income (Loss) (Tables) | 9 Months Ended |
Sep. 30, 2015 | |
Accumulated Other Comprehensive Income (Loss), Net of Tax [Abstract] | |
Summary of Other Comprehensive (Loss) Income | The other comprehensive loss consists of the following components: Three Months Ended September 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 $ (10,548 ) $ — $ (10,548 ) $ (9,777 ) $ — $ (9,777 ) Adjustment for sales of businesses with foreign operations 6,026 — 6,026 — — — (4,522 ) — (4,522 ) (9,777 ) — (9,777 ) Unrealized gains on available-for-sale securities: Unrealized gains for the period, net 3,836 (1,535 ) 2,301 9,734 (3,894 ) 5,840 Pension and other postretirement plans: Amortization of net prior service cost (credit) included in net income 68 (27 ) 41 (101 ) 41 (60 ) Amortization of net actuarial gain included in net income (5,676 ) 2,271 (3,405 ) (7,425 ) 2,970 (4,455 ) Curtailment gains included in net income 51 (21 ) 30 — — — Curtailment and settlement included in distribution to Cable ONE 1,403 (561 ) 842 — — — (4,154 ) 1,662 (2,492 ) (7,526 ) 3,011 (4,515 ) Cash flow hedge: Gain for the period — — — 230 (92 ) 138 Other Comprehensive Loss $ (4,840 ) $ 127 $ (4,713 ) $ (7,339 ) $ (975 ) $ (8,314 ) Nine Months Ended September 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 $ (17,387 ) $ — $ (17,387 ) $ (7,111 ) $ — $ (7,111 ) Adjustment for sales of businesses with foreign operations 5,501 — 5,501 — — — (11,886 ) — (11,886 ) (7,111 ) — (7,111 ) Unrealized (losses) gains on available-for-sale securities: Unrealized (losses) gains for the period, net (16,497 ) 6,599 (9,898 ) 46,139 (18,456 ) 27,683 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 ) (16,497 ) 6,599 (9,898 ) (219,135 ) 87,654 (131,481 ) Pension and other postretirement plans: Amortization of net prior service cost (credit) included in net income 207 (82 ) 125 (305 ) 122 (183 ) Amortization of net actuarial gain included in net income (4,419 ) 1,768 (2,651 ) (22,032 ) 8,813 (13,219 ) Curtailment gains included in net income 51 (21 ) 30 — — — Curtailment and settlement included in distribution to Cable ONE 1,403 (561 ) 842 — — — (2,758 ) 1,104 (1,654 ) (22,337 ) 8,935 (13,402 ) Cash flow hedge: Gain for the period 179 (71 ) 108 641 (256 ) 385 Other Comprehensive Loss $ (30,962 ) $ 7,632 $ (23,330 ) $ (247,942 ) $ 96,333 $ (151,609 ) |
Summary of Changes in Accumulated Other Comprehensive (Loss) Income | The accumulated balances related to each component of other comprehensive (loss) 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 (17,387 ) (9,898 ) 842 29 (26,414 ) Net amount reclassified from accumulated other comprehensive income 5,501 — (2,496 ) 79 3,084 Other comprehensive (loss) income, net of tax (11,886 ) (9,898 ) (1,654 ) 108 (23,330 ) Balance as of September 30, 2015 $ (3,338 ) $ 42,232 $ 391,256 $ — $ 430,150 |
Summary of Amounts and Line Items of reclassifications Out of Accumulated Other Comprehensive (Loss) Income | The amounts and line items of reclassifications out of Accumulated Other Comprehensive (Loss) Income are as follows: Three Months Ended Nine 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 $ 6,026 $ — $ 5,501 $ — Other (expense) income, net Unrealized Gains on Available-for-sale Securities: Realized gain for the period — — — (265,274 ) Other (expense) income, net — — — 106,110 (1) — — — (159,164 ) Net of Tax Pension and Other Postretirement Plans: Amortization of net prior service cost (credit) 68 (101 ) 207 (305 ) (2) Amortization of net actuarial gain (5,676 ) (7,425 ) (4,419 ) (22,032 ) (2) Curtailment gains 51 — 51 — (2) (5,557 ) (7,526 ) (4,161 ) (22,337 ) Before tax 2,223 3,011 1,665 8,935 (Benefit) Provision for Income Taxes (3,334 ) (4,515 ) (2,496 ) (13,402 ) Net of Tax Cash Flow Hedge — 217 132 645 Interest expense — (87 ) (53 ) (258 ) (Benefit) Provision for Income Taxes — 130 79 387 Net of Tax Total reclassification for the period $ 2,692 $ (4,385 ) $ 3,084 $ (172,179 ) Net of Tax ____________ (1) Benefits of $1.2 million were recorded in Provision for Income Taxes related to the realized loss for the nine months ended September 30, 2014. The remaining $107.3 million for the nine months ended September 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) | 9 Months Ended |
Sep. 30, 2015 | |
Segment Reporting Information [Line Items] | |
Summary of Segment Reporting Information, by Operating Segment | The following table summarizes the 2015 quarterly financial information related to each of the Company’s business segments: March 31, June 30, September 30, (in thousands) 2015 2015 2015 Operating Revenues Education $ 500,602 $ 523,625 $ 481,746 Television broadcasting 83,564 90,753 89,693 Other businesses 63,259 66,512 70,052 Corporate office — — — Intersegment elimination — — (59 ) $ 647,425 $ 680,890 $ 641,432 Income (Loss) From Operations Education $ (22,849 ) $ 15,848 $ (242,777 ) Television broadcasting 38,562 42,014 40,526 Other businesses (5,162 ) (2,161 ) (3,059 ) Corporate office (1,689 ) 524 (8,413 ) $ 8,862 $ 56,225 $ (213,723 ) Equity in (Losses) Earnings of Affiliates, Net (404 ) (353 ) 95 Interest Expense, Net (7,942 ) (8,025 ) (7,349 ) Other (Expense) Income, Net (1,105 ) 11,678 (40,458 ) (Loss) Income from Continuing Operations Before Income Taxes $ (589 ) $ 59,525 $ (261,435 ) Depreciation of Property, Plant and Equipment Education $ 18,528 $ 21,980 $ 10,637 Television broadcasting 2,109 2,125 2,237 Other businesses 1,302 1,254 1,335 Corporate office 258 250 251 $ 22,197 $ 25,609 $ 14,460 Amortization of Intangible Assets and Impairment of Goodwill and Other Long-lived Assets Education $ 1,507 $ 8,343 $ 249,930 Television broadcasting 63 63 63 Other businesses 3,168 3,117 3,110 Corporate office — — — $ 4,738 $ 11,523 $ 253,103 Net Pension (Credit) Expense Education $ 3,947 $ 3,947 $ 7,525 Television broadcasting 391 391 425 Other businesses 193 186 328 Corporate office (16,938 ) (16,939 ) (24,533 ) $ (12,407 ) $ (12,415 ) $ (16,255 ) The following table summarizes the 2014 quarterly financial information related to each of the Company’s business segments: March 31, June 30, September 30, December 31, (in thousands) 2014 2014 2014 2014 Operating Revenues Education $ 522,154 $ 542,964 $ 543,918 $ 551,381 Television broadcasting 85,651 88,297 87,442 102,446 Other businesses 24,913 42,351 71,845 73,798 Corporate office — — — — Intersegment elimination (98 ) (30 ) — — $ 632,620 $ 673,582 $ 703,205 $ 727,625 Income (Loss) from Operations Education $ 1,862 $ 17,637 $ 12,551 $ 33,413 Television broadcasting 44,386 44,088 44,979 54,380 Other businesses (10,747 ) (6,995 ) (9,292 ) 5,948 Corporate office 2,206 50 (7,029 ) 5,283 $ 37,707 $ 54,780 $ 41,209 $ 99,024 Equity in Earnings of Affiliates, Net 4,052 91,503 4,613 202 Interest Expense, Net (8,189 ) (7,884 ) (8,769 ) (8,555 ) Other Expense, Net 133,273 268,114 (10,723 ) 387,346 Income from Continuing Operations Before Income Taxes $ 166,843 $ 406,513 $ 26,330 $ 478,017 Depreciation of Property, Plant and Equipment Education $ 16,416 $ 15,372 $ 15,237 $ 14,713 Television broadcasting 1,994 2,039 2,148 2,228 Other businesses 520 780 1,201 1,430 Corporate office 500 10 78 247 $ 19,430 $ 18,201 $ 18,664 $ 18,618 Amortization of Intangible Assets and Impairment of Intangibles and Other Long-lived Assets Education $ 1,924 $ 1,798 $ 1,927 $ 19,292 Television broadcasting — — — 32 Other businesses 758 1,138 5,427 3,193 Corporate office — — — — $ 2,682 $ 2,936 $ 7,354 $ 22,517 Net Pension (Credit) Expense Education $ 4,143 $ 3,566 $ 3,854 $ 3,855 Television broadcasting 320 358 338 338 Other businesses 164 202 191 191 Corporate office (17,679 ) (22,933 ) (18,620 ) (23,070 ) $ (13,052 ) $ (18,807 ) $ (14,237 ) $ (18,686 ) The following table summarizes financial information related to each of the Company's business segments: Nine Months Ended September 30 Year Ended December 31 (in thousands) 2015 2014 2014 2013 Operating Revenues Education $ 1,505,973 $ 1,609,036 $ 2,160,417 $ 2,163,734 Television broadcasting 264,010 261,390 363,836 308,306 Other businesses 199,823 139,109 212,907 128,803 Corporate office — — — — Intersegment elimination (59 ) (128 ) (128 ) (241 ) $ 1,969,747 $ 2,009,407 $ 2,737,032 $ 2,600,602 (Loss) Income from Operations Education $ (249,778 ) $ 32,050 $ 65,463 $ 50,989 Television broadcasting 121,102 133,452 187,833 145,192 Other businesses (10,382 ) (27,034 ) (21,086 ) (23,468 ) Corporate office (9,578 ) (4,773 ) 510 (23,279 ) $ (148,636 ) $ 133,695 $ 232,720 $ 149,434 Equity in (Losses) Earnings of Affiliates, Net (662 ) 100,168 100,370 13,215 Interest Expense, Net (23,316 ) (24,841 ) (33,397 ) (33,667 ) Other (Expense) Income, Net (29,885 ) 390,664 778,010 (23,751 ) (Loss) Income from Continuing Operations Before Income Taxes $ (202,499 ) $ 599,686 $ 1,077,703 $ 105,231 Depreciation of Property, Plant and Equipment Education $ 51,145 $ 47,024 $ 61,737 $ 89,622 Television broadcasting 6,471 6,181 8,409 8,746 Other businesses 3,891 2,501 3,931 2,177 Corporate office 759 589 836 626 $ 62,266 $ 56,295 $ 74,913 $ 101,171 Amortization of Intangible Assets and Impairment of Goodwill and Other Long-lived Assets Education $ 259,780 $ 5,649 $ 24,941 $ 11,753 Television broadcasting 189 — 32 — Other businesses 9,395 7,323 10,516 3,416 Corporate office — — — — $ 269,364 $ 12,972 $ 35,489 $ 15,169 Net Pension (Credit) Expense Education $ 15,419 $ 11,563 $ 15,418 $ 16,538 Television broadcasting 1,207 1,016 1,355 3,961 Other businesses 707 557 748 610 Corporate office (58,410 ) (59,231 ) (82,301 ) (41,836 ) $ (41,077 ) $ (46,095 ) $ (64,780 ) $ (20,727 ) Asset information for the Company’s business segments are as follows: As of (in thousands) September 30, December 31, Identifiable Assets Education $ 1,249,359 $ 1,781,543 Television broadcasting 309,232 305,426 Other businesses 472,272 518,807 Corporate office 938,195 1,778,391 $ 2,969,058 $ 4,384,167 Investments in Marketable Equity Securities 312,892 193,793 Investments in Affiliates 53,198 19,811 Prepaid Pension Cost 1,189,181 1,152,488 Assets Held for Sale — 2,060 Total Assets $ 4,524,329 $ 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 Nine Months Ended September 30 September 30 (in thousands) 2015 2014 2015 2014 Operating Revenues Higher education $ 203,529 $ 249,882 $ 681,814 $ 755,597 Test preparation 83,706 85,108 233,313 234,010 Kaplan international 192,702 207,615 585,486 615,507 Kaplan corporate and other 1,905 1,492 5,723 4,891 Intersegment elimination (96 ) (179 ) (363 ) (969 ) $ 481,746 $ 543,918 $ 1,505,973 $ 1,609,036 Income (Loss) from Operations Higher education $ 3,153 $ 5,391 $ 28,510 $ 39,487 Test preparation 13,620 6,980 16,365 (3,552 ) Kaplan international 8,295 13,853 33,585 40,609 Kaplan corporate and other (267,882 ) (13,651 ) (328,333 ) (44,608 ) Intersegment elimination 37 (22 ) 95 114 $ (242,777 ) $ 12,551 $ (249,778 ) $ 32,050 Depreciation of Property, Plant and Equipment Higher education $ 4,066 $ 7,320 $ 13,688 $ 22,140 Test preparation 2,052 2,865 7,205 9,721 Kaplan international 4,277 4,951 14,004 14,546 Kaplan corporate and other 242 101 16,248 617 $ 10,637 $ 15,237 $ 51,145 $ 47,024 Amortization of Intangible Assets $ 1,339 $ 1,927 $ 4,313 $ 5,649 Impairment of Goodwill and Other Long-lived Assets $ 248,591 $ — $ 255,467 $ — Pension Expense Higher education $ 3,964 $ 2,628 $ 9,028 $ 7,885 Test preparation 775 722 2,325 2,166 Kaplan international 114 89 326 267 Kaplan corporate and other 2,672 415 3,740 1,245 $ 7,525 $ 3,854 $ 15,419 $ 11,563 In the third quarter of 2015, a favorable $3.0 million out of period revenue adjustment was included at the test preparation segment that related to prior periods from 2011 through the second 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 2015 and prior years and the related interim periods, based on its consideration of quantitative and qualitative factors. Identifiable assets for the Company’s education division consist of the following: As of (in thousands) September 30, December 31, Identifiable assets Higher education $ 227,406 $ 749,421 Test preparation 147,998 167,055 Kaplan international 811,672 838,148 Kaplan corporate and other 62,283 26,919 $ 1,249,359 $ 1,781,543 |
Organization, Basis of Presen33
Organization, Basis of Presentation and Recent Accounting Pronouncements (Narrative) (Details) $ in Thousands | 9 Months Ended | ||
Sep. 30, 2015USD ($)TelevisionStation | Sep. 30, 2014USD ($) | Sep. 03, 2015campus | |
Percentage of ownership indicating control for consolidation purposes | more than 50% | ||
Net Cash Used in Investing Activities | $ (274,927) | $ (94,258) | |
Net Cash Provided by Operating Activities | $ 116,107 | 346,870 | |
Television Broadcasting [Member] | |||
Number of television broadcast stations | TelevisionStation | 5 | ||
Revision Adjustment [Member] | |||
Net Cash Used in Investing Activities | (9,993) | ||
Net Cash Provided by Operating Activities | $ 9,993 | ||
KHE Campuses [Member] | Higher Education [Member] | |||
Number of nationally accredited ground campuses sold | campus | 38 |
Organization, Basis of Presen34
Organization, Basis of Presentation and Recent Accounting Pronouncements (Details 1) - USD ($) $ in Thousands | 9 Months Ended | |
Sep. 30, 2015 | Sep. 30, 2014 | |
Error Corrections and Prior Period Adjustments Restatement [Line Items] | ||
Increase (decrease) in Accounts Payable and Accrued Liabilities | $ 74,112 | $ (46,673) |
Net Cash Provided by Operating Activities | 116,107 | 346,870 |
Purchases of Property, Plant and Equipment | (120,018) | (172,434) |
Net Cash Used in Investing Activities | $ (274,927) | (94,258) |
Scenario, Previously Reported [Member] | ||
Error Corrections and Prior Period Adjustments Restatement [Line Items] | ||
Increase (decrease) in Accounts Payable and Accrued Liabilities | (56,666) | |
Net Cash Provided by Operating Activities | 336,877 | |
Purchases of Property, Plant and Equipment | (162,441) | |
Net Cash Used in Investing Activities | (84,265) | |
Revision Adjustment [Member] | ||
Error Corrections and Prior Period Adjustments Restatement [Line Items] | ||
Increase (decrease) in Accounts Payable and Accrued Liabilities | 9,993 | |
Net Cash Provided by Operating Activities | 9,993 | |
Purchases of Property, Plant and Equipment | (9,993) | |
Net Cash Used in Investing Activities | $ (9,993) |
Discontinued Operations (Narrat
Discontinued Operations (Narrative) (Details) | Jul. 01, 2015USD ($) | Jun. 30, 2015USD ($) | Jan. 31, 2015USD ($)school | Sep. 30, 2015USD ($) | Jun. 30, 2015USD ($)employeeshares | Sep. 30, 2014USD ($)school | Jun. 30, 2014USD ($) | Mar. 31, 2014USD ($) | Dec. 31, 2013USD ($) | Sep. 30, 2015USD ($) | Sep. 30, 2014USD ($) | Dec. 31, 2014USD ($) |
Income Statement, Balance Sheet and Additional Disclosures by Disposal Groups, Including Discontinued Operations [Line Items] | ||||||||||||
Net assets divested | $ 406,453,000 | |||||||||||
Net assets divested, net of cash | 312,300,000 | |||||||||||
Pre-tax gain (loss) on sale and/or disposition | $ 0 | $ 4,352,000 | $ 732,000 | $ (349,875,000) | ||||||||
Sale of Publishing Subsidiaries [Member] | Revision Adjustment [Member] | ||||||||||||
Income Statement, Balance Sheet and Additional Disclosures by Disposal Groups, Including Discontinued Operations [Line Items] | ||||||||||||
After-tax gain (loss) on sale and/or disposition | $ (3,000,000) | |||||||||||
Sale of Publishing Subsidiaries [Member] | Scenario, Previously Reported [Member] | ||||||||||||
Income Statement, Balance Sheet and Additional Disclosures by Disposal Groups, Including Discontinued Operations [Line Items] | ||||||||||||
After-tax gain (loss) on sale and/or disposition | $ 100,000,000 | |||||||||||
Cable Spin-Off [Member] | ||||||||||||
Income Statement, Balance Sheet and Additional Disclosures by Disposal Groups, Including Discontinued Operations [Line Items] | ||||||||||||
GHC dividend received from Cable ONE | $ 450,000,000 | |||||||||||
Cable ONE, unsecured notes | 450,000,000 | $ 450,000,000 | ||||||||||
Discontinued Operations, Disposed of by Means Other than Sale, Spinoff [Member] | ||||||||||||
Income Statement, Balance Sheet and Additional Disclosures by Disposal Groups, Including Discontinued Operations [Line Items] | ||||||||||||
Spin-off Costs | 7,400,000 | $ 3,500,000 | ||||||||||
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 | $ 375,000,000 | |||||||||||
Restricted Stock [Member] | Cable Spin-Off [Member] | ||||||||||||
Income Statement, Balance Sheet and Additional Disclosures by Disposal Groups, Including Discontinued Operations [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 | |||||||||||
Employee Stock Option [Member] | Cable Spin-Off [Member] | ||||||||||||
Income Statement, Balance Sheet and Additional Disclosures by Disposal Groups, Including Discontinued Operations [Line Items] | ||||||||||||
Incremental stock compensation from modification | 23,500,000 | |||||||||||
Cable [Member] | Cable Spin-Off [Member] | ||||||||||||
Income Statement, Balance Sheet and Additional Disclosures by Disposal Groups, Including Discontinued Operations [Line Items] | ||||||||||||
Cable ONE, unsecured notes | $ 550,000,000 | $ 550,000,000 | ||||||||||
Cable [Member] | Restricted Stock [Member] | Cable Spin-Off [Member] | ||||||||||||
Income Statement, Balance Sheet and Additional Disclosures by Disposal Groups, Including Discontinued Operations [Line Items] | ||||||||||||
Number of employees effected by modification | employee | 21 | |||||||||||
Incremental stock compensation from modification | $ 3,700,000 | |||||||||||
Kaplan International [Member] | Kaplan China [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 | $ (700,000) | $ (4,400,000) | ||||||||||
July 2015 through December 2018 [Member] | Restricted Stock [Member] | Cable Spin-Off [Member] | ||||||||||||
Income Statement, Balance Sheet and Additional Disclosures by Disposal Groups, Including Discontinued Operations [Line Items] | ||||||||||||
Incremental stock compensation from modification | $ 3,000,000 | |||||||||||
July 2015 through December 2018 [Member] | Employee Stock Option [Member] | Cable Spin-Off [Member] | ||||||||||||
Income Statement, Balance Sheet and Additional Disclosures by Disposal Groups, Including Discontinued Operations [Line Items] | ||||||||||||
Incremental stock compensation from modification | 4,700,000 | |||||||||||
Q3 2015 [Member] | Corporate Office [Member] | Employee Stock Option [Member] | Cable Spin-Off [Member] | ||||||||||||
Income Statement, Balance Sheet and Additional Disclosures by Disposal Groups, Including Discontinued Operations [Line Items] | ||||||||||||
Incremental stock compensation from modification | 18,800,000 | |||||||||||
Defined Benefit Pension Plan [Member] | ||||||||||||
Income Statement, Balance Sheet and Additional Disclosures by Disposal Groups, Including Discontinued Operations [Line Items] | ||||||||||||
Curtailment gain | 3,267,000 | $ 0 | 3,267,000 | $ 0 | ||||||||
Discontinued Operations [Member] | Defined Benefit Pension Plan [Member] | Cable Spin-Off [Member] | ||||||||||||
Income Statement, Balance Sheet and Additional Disclosures by Disposal Groups, Including Discontinued Operations [Line Items] | ||||||||||||
Curtailment gain | $ 2,200,000 | $ 2,200,000 |
Discontinued Operations (Carryi
Discontinued Operations (Carrying Amounts of Assets and Liabilities Included in Discontinued Operations) (Details) - USD ($) $ in Thousands | Sep. 30, 2015 | Jul. 01, 2015 | Dec. 31, 2014 |
Disposal Group, Including Discontinued Operation, Balance Sheet Disclosures [Abstract] | |||
Cash and cash equivalents | $ 94,115 | $ 1,235 | |
Accounts receivable, net | 29,778 | ||
Other current assets | 14,182 | ||
Total current assets | $ 0 | 138,075 | 1,240 |
Property, plant and equipment, net | 612,812 | ||
Goodwill, net | 85,488 | ||
Indefinite-lived intangible assets, net | 496,321 | ||
Amortized intangible assets, net | 510 | ||
Deferred charges and other assets | 22,541 | ||
Total Assets | 1,355,747 | ||
Accounts payable and accrued liabilities | 70,920 | ||
Income taxes payable | 2,962 | ||
Deferred revenue | 21,883 | ||
Short-term borrowings | 2,500 | ||
Total current liabilities | $ 0 | 98,265 | $ 1,034 |
Accrued compensation and related benefits | 24,227 | ||
Other liabilities | 57 | ||
Deferred income taxes | 279,245 | ||
Long-term debt | 547,500 | ||
Total Liabilities | 949,294 | ||
Net assets divested in the Spin-Off | $ 406,453 |
Discontinued Operations Discont
Discontinued Operations Discontinued Operations (Cash Flows from Discontinued Operations) (Details 1) - Cable Spin-Off [Member] - USD ($) $ in Thousands | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2015 | Sep. 30, 2014 | Sep. 30, 2015 | Sep. 30, 2014 | |
Income Statement, Balance Sheet and Additional Disclosures by Disposal Groups, Including Discontinued Operations [Line Items] | ||||
Net Cash (Used in) Provided by Operating Activities, Discontinued Operations | $ (4,468) | $ 59,863 | $ 111,665 | $ 187,153 |
Net Cash Provided by (Used in) Investing Activities, Discontinued Operations | $ 0 | $ 51,283 | $ (74,416) | $ (35,705) |
Discontinued Operations (Summar
Discontinued Operations (Summarized Income (Loss) from Discontinued Operations, Net Of Tax) (Details 2) - USD ($) $ in Thousands | 3 Months Ended | 9 Months Ended | 12 Months Ended | ||||||||
Sep. 30, 2015 | Jun. 30, 2015 | Mar. 31, 2015 | Dec. 31, 2014 | Sep. 30, 2014 | Jun. 30, 2014 | Mar. 31, 2014 | Sep. 30, 2015 | Sep. 30, 2014 | Dec. 31, 2014 | Dec. 31, 2013 | |
Discontinued Operations and Disposal Groups [Abstract] | |||||||||||
Operating revenues | $ 0 | $ 196,960 | $ 397,404 | $ 647,128 | |||||||
Operating costs and expenses | 1,662 | (157,819) | (325,379) | (511,981) | |||||||
Operating income | 1,662 | 39,141 | 72,025 | 135,147 | |||||||
Non-operating income (expense) | 0 | 75,217 | (1,288) | 75,153 | |||||||
Income from discontinued operations | 1,662 | 114,358 | 70,737 | 210,300 | |||||||
Provision for income taxes | 1,283 | 42,331 | 27,783 | 77,271 | |||||||
Net Income from Discontinued Operations | 379 | 72,027 | 42,954 | 133,029 | |||||||
(Loss) gain on sales of discontinued operations | 0 | (4,352) | (732) | 349,875 | |||||||
Expense (benefit) from income taxes on sales of discontinued operations | 0 | 1,466 | 52 | (16,304) | |||||||
Income from Discontinued Operations, Net of Tax | $ 379 | $ 18,502 | $ 23,289 | $ 28,649 | $ 66,209 | $ 405,237 | $ 27,762 | $ 42,170 | $ 499,208 | $ 527,857 | $ 172,614 |
Discontinued Operations (Operat
Discontinued Operations (Operating Results After Reclassifying Certain Operations As Discontinued Operations) (Details 3) - USD ($) $ / shares in Units, $ in Thousands | 3 Months Ended | 9 Months Ended | 12 Months Ended | ||||||||
Sep. 30, 2015 | Jun. 30, 2015 | Mar. 31, 2015 | Dec. 31, 2014 | Sep. 30, 2014 | Jun. 30, 2014 | Mar. 31, 2014 | Sep. 30, 2015 | Sep. 30, 2014 | Dec. 31, 2014 | Dec. 31, 2013 | |
Operating Revenues [Abstract] | |||||||||||
Education | $ 481,687 | $ 523,625 | $ 500,602 | $ 551,381 | $ 543,918 | $ 542,964 | $ 522,154 | $ 1,505,914 | $ 1,609,036 | $ 2,160,417 | $ 2,163,734 |
Advertising | 68,898 | 70,137 | 66,454 | 91,561 | 72,951 | 73,587 | 70,115 | 205,489 | 216,653 | 308,214 | 275,024 |
Other | 90,847 | 87,128 | 80,369 | 84,683 | 86,336 | 57,031 | 40,351 | 258,344 | 183,718 | 268,401 | 161,844 |
Total Operating Revenues | 641,432 | 680,890 | 647,425 | 727,625 | 703,205 | 673,582 | 632,620 | 1,969,747 | 2,009,407 | 2,737,032 | 2,600,602 |
Operating Costs and Expenses [Abstract] | |||||||||||
Operating | 302,029 | 311,121 | 309,223 | 317,687 | 326,395 | 321,163 | 296,507 | 922,373 | 944,066 | 1,261,753 | 1,210,863 |
Selling, general and administrative | 285,563 | 276,412 | 302,405 | 269,779 | 309,583 | 276,502 | 276,294 | 864,380 | 862,379 | 1,132,157 | 1,123,965 |
Depreciation of property, plant and equipment | 14,460 | 25,609 | 22,197 | 18,618 | 18,664 | 18,201 | 19,430 | 62,266 | 56,295 | 74,913 | 101,171 |
Amortization of intangible assets | 4,512 | 4,647 | 4,738 | 5,215 | 7,354 | 2,936 | 2,682 | 13,897 | 12,972 | 18,187 | 11,919 |
Impairment of long-lived assets | 6,876 | 0 | |||||||||
Impairment of intangible and other long-lived assets | 17,302 | 0 | 0 | 0 | 17,302 | 3,250 | |||||
Total Operating Costs and Expenses | 855,155 | 624,665 | 638,563 | 628,601 | 661,996 | 618,802 | 594,913 | 2,118,383 | 1,875,712 | 2,504,312 | 2,451,168 |
Income from Operations | (213,723) | 56,225 | 8,862 | 99,024 | 41,209 | 54,780 | 37,707 | (148,636) | 133,695 | 232,720 | 149,434 |
Equity in earnings (losses) of affiliates, net | 95 | (353) | (404) | 202 | 4,613 | 91,503 | 4,052 | (662) | 100,168 | 100,370 | 13,215 |
Interest income | 481 | 323 | 559 | 367 | 529 | 641 | 599 | 1,363 | 1,769 | 2,136 | 2,264 |
Interest expense | (7,830) | (8,348) | (8,501) | (8,922) | (9,298) | (8,525) | (8,788) | (24,679) | (26,610) | (35,533) | (35,931) |
Other income (expense), net | (40,458) | 11,678 | (1,105) | 387,346 | (10,723) | 268,114 | 133,273 | (29,885) | 390,664 | 778,010 | (23,751) |
Income (loss) from Continuing Operations Before Income Taxes | (261,435) | 59,525 | (589) | 478,017 | 26,330 | 406,513 | 166,843 | (202,499) | 599,686 | 1,077,703 | 105,231 |
Provision (Benefit) for Income Taxes | (30,500) | 19,600 | 900 | 172,000 | 16,100 | 61,900 | 62,300 | (10,000) | 140,300 | 312,300 | 40,500 |
Income (Loss) from Continuing Operations | (230,935) | 39,925 | (1,489) | 306,017 | 10,230 | 344,613 | 104,543 | (192,499) | 459,386 | 765,403 | 64,731 |
Income (Loss) from Discontinued Operations, Net of Tax | 379 | 18,502 | 23,289 | 28,649 | 66,209 | 405,237 | 27,762 | 42,170 | 499,208 | 527,857 | 172,614 |
Net Income (Loss) | (230,556) | 58,427 | 21,800 | 334,666 | 76,439 | 749,850 | 132,305 | (150,329) | 958,594 | 1,293,260 | 237,345 |
Net (Income) Loss Attributable to Noncontrolling Interests | (287) | (434) | (774) | (256) | 121 | 499 | 219 | (1,495) | 839 | 583 | (480) |
Net Income (Loss) Attributable to Graham Holdings Company | (230,843) | 57,993 | 21,026 | 334,410 | 76,560 | 750,349 | 132,524 | (151,824) | 959,433 | 1,293,843 | 236,865 |
Redeemable Preferred Stock Dividends | 0 | (211) | (420) | 0 | (209) | (212) | (426) | (631) | (847) | (847) | (855) |
Net income (loss) attributable to Graham Holdings Company common stockholders | (230,843) | 57,782 | 20,606 | 334,410 | 76,351 | 750,137 | 132,098 | (152,455) | 958,586 | 1,292,996 | 236,010 |
Amounts Attributable to Graham Holdings Company Common Stockholders | |||||||||||
Income (loss) from continuing operations | (231,222) | 39,280 | (2,683) | 305,761 | 10,142 | 344,900 | 104,336 | (194,625) | 459,378 | 765,139 | 63,396 |
Income (Loss) from Discontinued Operations, Net of Tax | 379 | 18,502 | 23,289 | 28,649 | 66,209 | 405,237 | 27,762 | 42,170 | 499,208 | 527,857 | 172,614 |
Net income (loss) attributable to Graham Holdings Company common stockholders | $ (230,843) | $ 57,782 | $ 20,606 | $ 334,410 | $ 76,351 | $ 750,137 | $ 132,098 | $ (152,455) | $ 958,586 | $ 1,292,996 | $ 236,010 |
Per Share Information Attributable to Graham Holdings Company Common Stockholders | |||||||||||
Basic income (loss) per common share from continuing operations in dollars per share | $ (40.32) | $ 6.74 | $ (0.58) | $ 52.76 | $ 1.73 | $ 46.35 | $ 14.10 | $ (34.18) | $ 66.77 | $ 115.88 | $ 8.62 |
Basic income (loss) per common share from discontinued operations in dollars per share | 0.07 | 3.18 | 4.09 | 4.95 | 11.45 | 54.45 | 3.75 | 7.99 | 72.53 | 79.93 | 23.48 |
Basic net income (loss) per common share in dollars per share | (40.25) | 9.92 | 3.51 | 57.71 | 13.18 | 100.80 | 17.85 | (26.19) | 139.30 | 195.81 | 32.10 |
Diluted income (loss) per common share from continuing operations in dollars per share | (40.32) | 6.71 | (0.58) | 52.48 | 1.73 | 46.20 | 14.05 | (34.18) | 66.52 | 115.40 | 8.61 |
Diluted income (loss) per common share from discontinued operations in dollars per share | 0.07 | 3.16 | 4.06 | 4.93 | 11.39 | 54.28 | 3.74 | 7.99 | 72.27 | 79.63 | 23.44 |
Diluted net income (loss) per common share in dollars per share | $ (40.25) | $ 9.87 | $ 3.48 | $ 57.41 | $ 13.12 | $ 100.48 | $ 17.79 | $ (26.19) | $ 138.79 | $ 195.03 | $ 32.05 |
Investments (Narrative) (Detail
Investments (Narrative) (Details) - USD ($) | Jun. 30, 2014 | Sep. 30, 2015 | Jun. 30, 2015 | Mar. 31, 2015 | Dec. 31, 2014 | Sep. 30, 2014 | Jun. 30, 2014 | Mar. 31, 2014 | Sep. 30, 2015 | Sep. 30, 2014 | Dec. 31, 2014 | Dec. 31, 2013 | Apr. 01, 2014 |
Schedule of Investments [Line Items] | |||||||||||||
Commercial paper and money market investments | $ 804,700,000 | $ 594,300,000 | $ 804,700,000 | $ 594,300,000 | |||||||||
New investments in marketable equity securities | 135,600,000 | $ 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 Berkshire marketable equity securities exchange | 0 | $ 0 | 0 | 266,733,000 | |||||||||
Pre-tax gain on equity method investments | $ 95,000 | $ (353,000) | $ (404,000) | $ 202,000 | $ 4,613,000 | $ 91,503,000 | $ 4,052,000 | $ (662,000) | $ 100,168,000 | $ 100,370,000 | $ 13,215,000 | ||
Corinthian Colleges, Inc. [Member] | |||||||||||||
Schedule of Investments [Line Items] | |||||||||||||
Impairment write-down on a marketable equity security | $ 500,000 | ||||||||||||
Berkshire Exchange Transaction [Member] | Berkshire Hathaway Inc [Member] | |||||||||||||
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 | |||||||||||
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 | |||||||||||
HomeHero [Member] | |||||||||||||
Schedule of Investments [Line Items] | |||||||||||||
Percentage of interest acquired | 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% | |||||||||||
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 | Sep. 30, 2015 | Dec. 31, 2014 |
Investments [Abstract] | ||
Total cost | $ 242,505 | $ 106,909 |
Gross unrealized gains | 74,263 | 86,884 |
Gross unrealized losses | (3,876) | 0 |
Total Fair Value | $ 312,892 | $ 193,793 |
Acqusitions, Dispositions, Exch
Acqusitions, Dispositions, Exchanges and Other (Acquisitions) (Narrative) (Details) $ in Millions | 9 Months Ended | ||
Sep. 30, 2015business | Sep. 30, 2014USD ($)business | Jul. 03, 2014 | |
Business Acquisition [Line Items] | |||
Acqusition purchase price | $ | $ 204.9 | ||
Number of businesses acquired | 0 | 7 | |
Other Businesses [Member] | |||
Business Acquisition [Line Items] | |||
Number of businesses acquired | 4 | ||
Test Preparation [Member] | |||
Business Acquisition [Line Items] | |||
Number of businesses acquired | 2 | ||
Higher Education [Member] | |||
Business Acquisition [Line Items] | |||
Number of businesses acquired | 1 | ||
Residential Healthcare Group Inc [Member] | |||
Business Acquisition [Line Items] | |||
Percentage of interest acquired | 80.00% | ||
Residential Hospice Illinois [Member] | |||
Business Acquisition [Line Items] | |||
Equity Method Investment, Ownership Percentage | 42.50% | ||
Residential Home Health Illinois [Member] | |||
Business Acquisition [Line Items] | |||
Equity Method Investment, Ownership Percentage | 40.00% | ||
Residential Healthcare Group Inc [Member] | Residential Hospice Illinois [Member] | |||
Business Acquisition [Line Items] | |||
Equity Method Investment, Ownership Percentage | 42.50% | ||
Residential Healthcare Group Inc [Member] | Residential Home Health Illinois [Member] | |||
Business Acquisition [Line Items] | |||
Equity Method Investment, Ownership Percentage | 40.00% |
Acquisitions, Dispositions, E43
Acquisitions, Dispositions, Exchanges and Other (Dispositions) (Narrative) (Details) $ in Thousands | Sep. 03, 2015USD ($)campus | Jan. 31, 2015school | Jun. 30, 2015USD ($)business | Mar. 31, 2015USD ($) | Sep. 30, 2014school |
Income Statement, Balance Sheet and Additional Disclosures by Disposal Groups, Including Discontinued Operations [Line Items] | |||||
Impairment of long-lived assets | $ 6,876 | $ 0 | |||
Education [Member] | |||||
Income Statement, Balance Sheet and Additional Disclosures by Disposal Groups, Including Discontinued Operations [Line Items] | |||||
Impairment of long-lived assets | $ 6,900 | ||||
Number of businesses disposed | business | 2 | ||||
Education [Member] | Sale of KHE Campuses business [Member] | |||||
Income Statement, Balance Sheet and Additional Disclosures by Disposal Groups, Including Discontinued Operations [Line Items] | |||||
Maximum letter of credit or other credit support | $ 45,000 | ||||
Term for letter of credit | 2 years | ||||
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 sold | 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, E44
Acquisitions, Dispositions, Exchanges and Other (Exchanges and Other) (Narrative) (Details) - USD ($) $ in Millions | 12 Months Ended | |||
Dec. 31, 2014 | Sep. 30, 2015 | Jan. 31, 2015 | Jun. 30, 2014 | |
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 | |||
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, E45
Acquisitions, Dispositions, Exchanges and Other (Significant Component) (Details 1) - USD ($) $ in Thousands | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2015 | Sep. 30, 2014 | Sep. 30, 2015 | Sep. 30, 2014 | |
Acqusitions and Dispositions [Abstract] | ||||
Disposal Group, Not Discontinued Operation, Revenue | $ 43,121 | $ 66,314 | $ 167,244 | $ 202,577 |
Disposal Group, Not Discontinued Operation, Operating Loss | $ 629 | $ (2,474) | $ (6,672) | $ (9,981) |
Acquisitions, Dispositions, E46
Acquisitions, Dispositions, Exchanges and Other (Assets Held for Sale) (Details 2) - USD ($) $ in Thousands | Sep. 30, 2015 | Jul. 01, 2015 | Dec. 31, 2014 |
Acqusitions and Dispositions [Abstract] | |||
Accounts receivable, net | $ 29,778 | ||
Other current assets | 14,182 | ||
Total current assets | $ 0 | 138,075 | $ 1,240 |
Property, plant and equipment, net | 612,812 | ||
Goodwill, net | 85,488 | ||
Indefinite-lived intangible assets | 496,321 | ||
Amortized intangible assets, net | 510 | ||
Deferred charges and other assets | 22,541 | ||
Noncurrent Assets Held for Sale | 0 | 820 | |
Accounts payable and accrued liabilities | 70,920 | ||
Deferred revenue | 21,883 | ||
Total current liabilities | $ 0 | 98,265 | $ 1,034 |
Other liabilities | $ 57 |
Goodwill and Other Intangible47
Goodwill and Other Intangible Assets (Intangible Assets) (Narrative) (Details) - USD ($) $ in Thousands | 3 Months Ended | 9 Months Ended | 12 Months Ended | ||||||||
Sep. 30, 2015 | Jun. 30, 2015 | Mar. 31, 2015 | Dec. 31, 2014 | Sep. 30, 2014 | Jun. 30, 2014 | Mar. 31, 2014 | Sep. 30, 2015 | Sep. 30, 2014 | Dec. 31, 2014 | Dec. 31, 2013 | |
Amortized Intangible Assets [Line Items] | |||||||||||
Gain on sale of intangible asset | $ 0 | $ 75,249 | |||||||||
Amortization of Intangible Assets | |||||||||||
Amortization of intangible assets | $ 4,512 | $ 4,647 | $ 4,738 | $ 5,215 | $ 7,354 | $ 2,936 | $ 2,682 | 13,897 | $ 12,972 | $ 18,187 | $ 11,919 |
Estimated amortization of intangible assets, remainder of 2015 | 4,000 | 4,000 | |||||||||
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 | ||||||||||
Wireless Licenses [Member] | Cable [Member] | Discontinued Operations [Member] | |||||||||||
Amortized Intangible Assets [Line Items] | |||||||||||
Gain on sale of intangible asset | $ 75,200 |
Goodwill and Other Intangible48
Goodwill and Other Intangible Assets Goodwill and Other Intangible Assets (Goodwill) (Narrative) (Details) - USD ($) $ in Thousands | 3 Months Ended | 9 Months Ended | |
Sep. 30, 2015 | Jun. 30, 2015 | Sep. 30, 2015 | |
Goodwill [Line Items] | |||
Goodwill impairment | $ (248,591) | $ 248,591 | |
Measurement period adjustment | 4,570 | ||
Education [Member] | |||
Goodwill [Line Items] | |||
Goodwill impairment | 248,591 | ||
Measurement period adjustment | 0 | ||
Higher Education [Member] | |||
Goodwill [Line Items] | |||
Goodwill impairment | 248,591 | ||
Other Businesses [Member] | |||
Goodwill [Line Items] | |||
Goodwill impairment | 0 | ||
Measurement period adjustment | $ 4,570 | ||
Other Businesses [Member] | Residential Healthcare Group Inc [Member] | |||
Goodwill [Line Items] | |||
Measurement period adjustment | $ 4,600 |
Goodwill and Other Intangible49
Goodwill and Other Intangible Assets (Changes in Carrying Amount of Goodwill) (Details 1) - USD ($) $ in Thousands | 3 Months Ended | 9 Months Ended |
Sep. 30, 2015 | Sep. 30, 2015 | |
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 | |
Impairment | $ 248,591 | (248,591) |
Dispositions | (126,809) | |
Foreign currency exchange rate changes | (30,524) | |
Goodwill, ending balance | 1,304,288 | 1,304,288 |
Accumulated impairment losses, ending balance | (356,932) | (356,932) |
Goodwill, net, ending balance | 947,356 | 947,356 |
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 | |
Impairment | (248,591) | |
Dispositions | (33,502) | |
Foreign currency exchange rate changes | (30,524) | |
Goodwill, ending balance | 993,200 | 993,200 |
Accumulated impairment losses, ending balance | (350,850) | (350,850) |
Goodwill, net, ending balance | 642,350 | 642,350 |
Higher Education [Member] | ||
Goodwill [Line Items] | ||
Goodwill, beginning balance | 409,884 | |
Accumulated impairment losses, beginning balance | 0 | |
Goodwill, net, beginning balance | 409,884 | |
Impairment | (248,591) | |
Dispositions | (28,738) | |
Foreign currency exchange rate changes | (280) | |
Goodwill, ending balance | 380,866 | 380,866 |
Accumulated impairment losses, ending balance | (248,591) | (248,591) |
Goodwill, net, ending balance | 132,275 | 132,275 |
Test Preparation [Member] | ||
Goodwill [Line Items] | ||
Goodwill, beginning balance | 166,098 | |
Accumulated impairment losses, beginning balance | (102,259) | |
Goodwill, net, beginning balance | 63,839 | |
Impairment | 0 | |
Dispositions | 0 | |
Foreign currency exchange rate changes | 0 | |
Goodwill, ending balance | 166,098 | 166,098 |
Accumulated impairment losses, ending balance | (102,259) | (102,259) |
Goodwill, net, ending balance | 63,839 | 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 | |
Impairment | 0 | |
Dispositions | (4,764) | |
Foreign currency exchange rate changes | (30,244) | |
Goodwill, ending balance | 446,236 | 446,236 |
Accumulated impairment losses, ending balance | 0 | 0 |
Goodwill, net, ending balance | 446,236 | 446,236 |
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 | |
Impairment | 0 | |
Dispositions | (85,488) | |
Foreign currency exchange rate changes | 0 | |
Goodwill, ending balance | 0 | 0 |
Accumulated impairment losses, ending balance | 0 | 0 |
Goodwill, net, ending balance | 0 | 0 |
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 | |
Impairment | 0 | |
Dispositions | 0 | |
Foreign currency exchange rate changes | 0 | |
Goodwill, ending balance | 168,345 | 168,345 |
Accumulated impairment losses, ending balance | 0 | 0 |
Goodwill, net, ending balance | 168,345 | 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 | |
Impairment | 0 | |
Dispositions | (7,819) | |
Foreign currency exchange rate changes | 0 | |
Goodwill, ending balance | 142,743 | 142,743 |
Accumulated impairment losses, ending balance | (6,082) | (6,082) |
Goodwill, net, ending balance | $ 136,661 | $ 136,661 |
Goodwill and Other Intangible50
Goodwill and Other Intangible Assets (Other Intangible Assets) (Details 2) - USD ($) $ in Thousands | 9 Months Ended | 12 Months Ended | |
Sep. 30, 2015 | Dec. 31, 2014 | ||
Amortized Intangible Assets [Line Items] | |||
Gross Carrying Amount | $ 154,362 | $ 182,107 | |
Accumulated Amortization | 72,548 | 85,160 | |
Net Carrying Amount | 81,814 | 96,947 | |
Indefinite-Lived Intangible Assets [Line Items] | |||
Indefinite-Lived Intangible Assets, Net | 14,645 | 516,753 | |
Franchise Agreements [Member] | |||
Indefinite-Lived Intangible Assets [Line Items] | |||
Indefinite-Lived Intangible Assets, Net | 0 | 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 | 1,232 | 1,590 | |
Net Carrying Amount | $ 449 | $ 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 | $ 86,839 | $ 104,685 | |
Accumulated Amortization | 37,528 | 47,539 | |
Net Carrying Amount | $ 49,311 | $ 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 | 9,367 | 8,827 | |
Net Carrying Amount | $ 1,151 | $ 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 | $ 53,140 | $ 55,452 | |
Accumulated Amortization | 22,709 | 19,724 | |
Net Carrying Amount | $ 30,431 | $ 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 | $ 2,184 | $ 8,969 | |
Accumulated Amortization | 1,712 | 7,480 | |
Net Carrying Amount | $ 472 | $ 1,489 | |
Other [Member] | Minimum [Member] | |||
Amortized Intangible Assets [Line Items] | |||
Useful Life | [1] | 1 year | 1 year |
Other [Member] | Maximum [Member] | |||
Amortized Intangible Assets [Line Items] | |||
Useful Life | [1] | 6 years | 25 years |
[1] | The Company’s other amortized intangible assets maximum useful life was 25 years as of December 31, 2014. |
Debt (Narrative) (Details)
Debt (Narrative) (Details) | Jun. 29, 2015USD ($) | Mar. 09, 2015AUD | Sep. 30, 2015USD ($) | Sep. 30, 2014USD ($) | Sep. 30, 2015USD ($) | Sep. 30, 2014USD ($) | Dec. 31, 2014USD ($) | Jun. 30, 2015USD ($) | Jun. 17, 2015USD ($) | Jun. 17, 2015AUD | Jan. 31, 2009 |
Debt Instrument [Line Items] | |||||||||||
Debt Instrument, Interest Rate, Stated Percentage | 7.25% | 7.25% | |||||||||
Average borrowings outstanding | $ 404,200,000 | $ 450,900,000 | $ 436,300,000 | $ 451,400,000 | |||||||
Weighted average interest rate of borrowings | 7.20% | 7.00% | 7.00% | 7.00% | |||||||
Net interest expense incurred | $ 7,300,000 | $ 8,800,000 | $ 23,300,000 | $ 24,800,000 | |||||||
Cable Spin-Off [Member] | |||||||||||
Debt Instrument [Line Items] | |||||||||||
Debt Instrument, Face Amount | $ 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 | 422,000,000 | 422,000,000 | $ 450,300,000 | ||||||||
Carrying value of debt instrument | 398,619,000 | 398,619,000 | 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 | $ 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] | |||||||||||
Debt Instrument, Interest Rate, Stated Percentage | 6.00% | 6.00% | |||||||||
Minimum interest rate | 0.00% | ||||||||||
Maximum interest rate | 6.00% | ||||||||||
Debt Instrument, Maturity year, start | Oct. 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] | |||||||||||
Debt Instrument, Face Amount | $ 550,000,000 |
Debt (Details 1)
Debt (Details 1) - USD ($) | Sep. 30, 2015 | Jun. 17, 2015 | Dec. 31, 2014 | Jan. 31, 2009 |
Debt Instrument [Line Items] | ||||
Other indebtedness | $ 4,203,000 | $ 6,685,000 | ||
Total Debt | 402,822,000 | 445,920,000 | ||
Less: current portion | (3,000,000) | (46,375,000) | ||
Total Long-Term Debt | $ 399,822,000 | 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 | $ 398,619,000 | 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 |
Fair Value Measurements Fair Va
Fair Value Measurements Fair Value Measurements (Narrative) (Details) - USD ($) $ in Thousands | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2015 | Jun. 30, 2015 | Jun. 30, 2014 | Sep. 30, 2015 | |
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||||
Impairment of goodwill | $ 248,591 | $ (248,591) | ||
Impairment of long-lived assets | $ 6,876 | |||
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 | Sep. 30, 2015 | Dec. 31, 2014 | |
Assets | |||
Marketable equity securities | $ 312,892 | $ 193,793 | |
7.25% Unsecured Notes due February 1, 2019 [Member] | |||
Liabilities | |||
Debt instrument | 422,000 | 450,300 | |
Fair Value, Measurements, Recurring [Member] | |||
Assets | |||
Money market investments | [1] | 554,913 | 368,131 |
Commercial paper | [2] | 249,827 | 226,197 |
Marketable equity securities | [3] | 312,892 | 193,793 |
Other current investments | [4] | 30,184 | 32,959 |
Total Financial Assets | 1,147,816 | 821,080 | |
Liabilities | |||
Deferred compensation plan liabilities | [5] | 48,765 | 70,661 |
Interest rate swap | [6] | 179 | |
Total Financial Liabilities | 70,840 | ||
Fair Value, Measurements, Recurring [Member] | Level 1 [Member] | |||
Assets | |||
Money market investments | [1] | 0 | 0 |
Commercial paper | [2] | 249,827 | 226,197 |
Marketable equity securities | [3] | 312,892 | 193,793 |
Other current investments | [4] | 16,031 | 11,788 |
Total Financial Assets | 578,750 | 431,778 | |
Liabilities | |||
Deferred compensation plan liabilities | [5] | 0 | 0 |
Interest rate swap | [6] | 0 | |
Total Financial Liabilities | 0 | ||
Fair Value, Measurements, Recurring [Member] | Level 2 [Member] | |||
Assets | |||
Money market investments | [1] | 554,913 | 368,131 |
Commercial paper | [2] | 0 | 0 |
Marketable equity securities | [3] | 0 | 0 |
Other current investments | [4] | 14,153 | 21,171 |
Total Financial Assets | 569,066 | 389,302 | |
Liabilities | |||
Deferred compensation plan liabilities | [5] | $ 48,765 | 70,661 |
Interest rate swap | [6] | 179 | |
Total Financial Liabilities | $ 70,840 | ||
[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. |
Stockholders' Equity (Narrative
Stockholders' Equity (Narrative) (Details) - USD ($) $ / shares in Units, $ in Millions | Oct. 01, 2015 | Sep. 30, 2015 | Sep. 30, 2014 | Sep. 30, 2015 | Sep. 30, 2014 | Jun. 30, 2015 | Jun. 30, 2014 |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||||||
Number of shares authorized in plan | 772,588 | 772,588 | 500,000 | ||||
Number of shares authorized by individual in plan | 77,258 | 77,258 | 50,000 | ||||
Dividends declared per common share | $ 1.15 | $ 2.55 | $ 9.1 | $ 10.2 | |||
Stock Option Plan [Member] | |||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||||||
Antidilutive securities, shares | 77,258 | 5,000 | 77,258 | 5,000 | |||
Restricted Stock Awards [Member] | |||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||||||
Antidilutive securities, shares | 5,050 | 6,075 | 5,050 | 6,075 | |||
Berkshire Exchange Transaction [Member] | Common Class B [Member] | |||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||||||
Number of Shares Received in Exchange | 1,620,190 | ||||||
Redemption of Redeemable Preferred Stock [Member] | |||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||||||
Redeemable preferred shares outstanding | 10,510 | ||||||
Redeemable preferred stock par value | $ 1 | ||||||
Redeemable preferred shares liquidation preference | $ 1,000 | ||||||
Redeemable preferred stock redemption amount | $ 10.5 |
Stockholders' Equity (Details 1
Stockholders' Equity (Details 1) - USD ($) $ / shares in Units, shares in Thousands, $ in Thousands | 3 Months Ended | 9 Months Ended | 12 Months Ended | ||||||||
Sep. 30, 2015 | Jun. 30, 2015 | Mar. 31, 2015 | Dec. 31, 2014 | Sep. 30, 2014 | Jun. 30, 2014 | Mar. 31, 2014 | Sep. 30, 2015 | Sep. 30, 2014 | Dec. 31, 2014 | Dec. 31, 2013 | |
Schedule of Earnings Per Share, Basic and Diluted, Including Two Class Method [Line Items] | |||||||||||
(Loss) income from continuing operations attributable to Graham Holdings Company common stockholders | $ (231,222) | $ 39,280 | $ (2,683) | $ 305,761 | $ 10,142 | $ 344,900 | $ 104,336 | $ (194,625) | $ 459,378 | $ 765,139 | $ 63,396 |
Less: Dividends-common stock outstanding and unvested restricted shares | (6,736) | (14,773) | (53,090) | (67,267) | |||||||
Undistributed (loss) earnings | $ (237,958) | $ (4,631) | $ (247,715) | $ 392,111 | |||||||
Percent allocated to common stockholders(1) | 100.00% | 100.00% | 100.00% | 97.89% | |||||||
Undistributed Earnings Allocated To Common Stockholders | $ (237,958) | $ (4,631) | $ (247,715) | $ 383,842 | |||||||
Add: Dividends-common stock outstanding | 6,621 | 14,462 | 52,180 | 66,021 | |||||||
Numerator for basic (loss) earnings per share | (231,337) | 9,831 | (195,535) | 449,863 | |||||||
Add: Additional undistributed earnings due to dilutive stock options | 0 | 0 | 0 | 36 | |||||||
Numerator for diluted (loss) earnings per share | $ (231,337) | $ 9,831 | $ (195,535) | $ 449,899 | |||||||
Weighted average shares outstanding (shares) | 5,738 | 5,671 | 5,721 | 6,737 | |||||||
Denominator for diluted (loss) earnings per share (shares) | 5,738 | 5,696 | 5,721 | 6,762 | |||||||
Graham Holdings Company Common Stockholders: | |||||||||||
Basic (loss) income per common share from continuing operations in dollars per share | $ (40.32) | $ 6.74 | $ (0.58) | $ 52.76 | $ 1.73 | $ 46.35 | $ 14.10 | $ (34.18) | $ 66.77 | $ 115.88 | $ 8.62 |
Diluted (loss) income per common share from continuing operations in dollars per share | $ (40.32) | $ 6.71 | $ (0.58) | $ 52.48 | $ 1.73 | $ 46.20 | $ 14.05 | $ (34.18) | $ 66.52 | $ 115.40 | $ 8.61 |
Stock Option Plan [Member] | |||||||||||
Schedule of Earnings Per Share, Basic and Diluted, Including Two Class Method [Line Items] | |||||||||||
Add: Effect of dilutive stock options (shares) | 0 | 25 | 0 | 25 |
Stockholders' Equity Stockholde
Stockholders' Equity Stockholders' Equity (Details 2) - shares shares in Thousands | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2015 | Sep. 30, 2014 | Sep. 30, 2015 | Sep. 30, 2014 | |
Stockholders' Equity Note [Abstract] | ||||
Weighted average restricted stock | 50 | 61 | 53 | 61 |
Weighted average stock options | 49 | 0 | 37 | 0 |
Pension and Postretirement Pl58
Pension and Postretirement Plans (Narrative) (Details) | 3 Months Ended | 9 Months Ended | ||||
Sep. 30, 2015USD ($)countryInvestmentcompanies | Sep. 30, 2014USD ($) | Mar. 31, 2014USD ($) | Sep. 30, 2015USD ($)countryInvestmentcompanies | Sep. 30, 2014USD ($) | Dec. 31, 2014USD ($)countryInvestment | |
Retirement Benefits Disclosure [Line Items] | ||||||
Net Periodic Cost (Benefit) | $ (45,081,000) | $ (51,637,000) | ||||
Early retirement program expense | 3,734,000 | 8,374,000 | ||||
Defined Benefit Pension Plan [Member] | ||||||
Retirement Benefits Disclosure [Line Items] | ||||||
Net Periodic Cost (Benefit) | $ (20,045,000) | $ (17,204,000) | (42,917,000) | (51,637,000) | ||
Curtailment gain | 3,267,000 | 0 | 3,267,000 | 0 | ||
Early retirement program expense | $ 3,734,000 | 3,884,000 | $ 3,734,000 | 8,374,000 | ||
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] | Sale of KHE Campuses business [Member] | ||||||
Retirement Benefits Disclosure [Line Items] | ||||||
Curtailment gain | $ 1,100,000 | $ 1,100,000 | ||||
Defined Benefit Pension Plan [Member] | Discontinued Operations [Member] | ||||||
Retirement Benefits Disclosure [Line Items] | ||||||
Net Periodic Cost (Benefit) | (100,000) | 900,000 | 1,900,000 | 2,800,000 | ||
Defined Benefit Pension Plan [Member] | Discontinued Operations [Member] | Cable Spin-Off [Member] | ||||||
Retirement Benefits Disclosure [Line Items] | ||||||
Curtailment gain | 2,200,000 | 2,200,000 | ||||
Defined Benefit Pension Plan [Member] | Separation Incentive Program [Member] | Education [Member] | ||||||
Retirement Benefits Disclosure [Line Items] | ||||||
Early retirement program expense | 3,700,000 | |||||
Defined Benefit Pension Plan [Member] | Corporate Office [Member] | Voluntary Retirement Incentive Program [Member] | ||||||
Retirement Benefits Disclosure [Line Items] | ||||||
Early retirement program expense | 3,900,000 | |||||
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) | 2,349,000 | 1,845,000 | 7,620,000 | 5,535,000 | ||
Early retirement program expense | 0 | 2,422,000 | 0 | 2,422,000 | ||
Supplemental Executive Retirement Plan (SERP) [Member] | Discontinued Operations [Member] | ||||||
Retirement Benefits Disclosure [Line Items] | ||||||
Net Periodic Cost (Benefit) | 100,000 | 200,000 | 400,000 | |||
Other Postretirement Plans [Member] | ||||||
Retirement Benefits Disclosure [Line Items] | ||||||
Net Periodic Cost (Benefit) | 283,000 | $ 22,000 | $ 849,000 | $ 67,000 | ||
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 | $ 580,600,000 | $ 580,600,000 | $ 730,600,000 | |||
Percentage of total plan assets | 24.00% | 24.00% | 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 | $ 582,000,000 | $ 582,000,000 | $ 468,000,000 | |||
Percentage of total plan assets | 24.00% | 24.00% | 19.00% | |||
Number of foreign countries for which the companys pension plan holds investments that exceed 10% of total plan assets | country | 1 | 1 | 1 |
Pension and Postretirement Pl59
Pension and Postretirement Plans (Total Benefit/Cost) (Details 1) - USD ($) $ in Thousands | 3 Months Ended | 9 Months Ended | 12 Months Ended | ||||||||
Sep. 30, 2015 | Jun. 30, 2015 | Mar. 31, 2015 | Dec. 31, 2014 | Sep. 30, 2014 | Jun. 30, 2014 | Mar. 31, 2014 | Sep. 30, 2015 | Sep. 30, 2014 | Dec. 31, 2014 | Dec. 31, 2013 | |
Defined Benefit Plan Disclosure [Line Items] | |||||||||||
Net Periodic Cost (Benefit) | $ (45,081) | $ (51,637) | |||||||||
Early retirement programs and special separation benefit expense | 3,734 | 8,374 | |||||||||
Total Cost (Benefit) | $ (16,255) | $ (12,415) | $ (12,407) | $ (18,686) | $ (14,237) | $ (18,807) | $ (13,052) | (41,077) | (46,095) | $ (64,780) | $ (20,727) |
Defined Benefit Pension Plan [Member] | |||||||||||
Defined Benefit Plan Disclosure [Line Items] | |||||||||||
Service cost | 6,090 | 6,976 | 20,593 | 21,489 | |||||||
Interest cost | 13,516 | 12,894 | 39,077 | 38,870 | |||||||
Expected return on assets | (33,673) | (29,877) | (96,771) | (90,644) | |||||||
Amortization of prior service cost (credit) | 79 | 83 | 241 | 247 | |||||||
Recognized actuarial loss (gain) | (6,057) | (7,280) | (6,057) | (21,599) | |||||||
Net Periodic Cost (Benefit) | (20,045) | (17,204) | (42,917) | (51,637) | |||||||
Curtailment gain | (3,267) | 0 | (3,267) | 0 | |||||||
Early retirement programs and special separation benefit expense | 3,734 | 3,884 | 3,734 | 8,374 | |||||||
Total Cost (Benefit) | (19,578) | (13,320) | (42,450) | (43,263) | |||||||
Supplemental Executive Retirement Plan (SERP) [Member] | |||||||||||
Defined Benefit Plan Disclosure [Line Items] | |||||||||||
Service cost | 464 | 373 | 1,482 | 1,119 | |||||||
Interest cost | 1,140 | 1,086 | 3,410 | 3,257 | |||||||
Amortization of prior service cost (credit) | 115 | 12 | 343 | 35 | |||||||
Recognized actuarial loss (gain) | 630 | 374 | 2,385 | 1,124 | |||||||
Net Periodic Cost (Benefit) | 2,349 | 1,845 | 7,620 | 5,535 | |||||||
Early retirement programs and special separation benefit expense | 0 | 2,422 | 0 | 2,422 | |||||||
Total Cost (Benefit) | 2,349 | 4,267 | 7,620 | 7,957 | |||||||
Other Postretirement Plans [Member] | |||||||||||
Defined Benefit Plan Disclosure [Line Items] | |||||||||||
Service cost | 333 | 375 | 999 | 1,125 | |||||||
Interest cost | 325 | 362 | 974 | 1,086 | |||||||
Amortization of prior service cost (credit) | (126) | (196) | (377) | (587) | |||||||
Recognized actuarial loss (gain) | (249) | (519) | (747) | (1,557) | |||||||
Net Periodic Cost (Benefit) | $ 283 | $ 22 | $ 849 | $ 67 |
Pension and Postretirement Pl60
Pension and Postretirement Plans (Asset Allocation) (Details 2) - Defined Benefit Pension Plans [Member] | Sep. 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) | 54.00% | 59.00% |
UNITED STATES | U.S. fixed income [Member] | ||
Defined Benefit Plan Disclosure [Line Items] | ||
Defined Benefit Plan Assets Allocation (Percent) | 13.00% | 13.00% |
International [Member] | International equities [Member] | ||
Defined Benefit Plan Disclosure [Line Items] | ||
Defined Benefit Plan Assets Allocation (Percent) | 33.00% | 28.00% |
Other Non-Operating Income (Nar
Other Non-Operating Income (Narrative) (Details) $ in Thousands | Jun. 30, 2014USD ($)shares | Mar. 27, 2014USD ($) | Jan. 31, 2015USD ($) | Sep. 30, 2015USD ($) | Jun. 30, 2015USD ($)business | Sep. 30, 2014USD ($) | Sep. 30, 2015USD ($) | Sep. 30, 2014USD ($) |
Schedule of Non-Operating Income (Expense) [Line Items] | ||||||||
Gain on sales of businesses | $ (26,253) | $ 2,918 | $ 0 | $ (23,335) | $ 0 | |||
Gain on Celtic joint venture transaction | 0 | 0 | 5,972 | 0 | ||||
Gain on Berkshire marketable equity securities exchange | 0 | 0 | 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 | |||||||
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 | |||||||
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 | |||||||
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 | Sep. 30, 2015 | Jun. 30, 2015 | Mar. 31, 2015 | Dec. 31, 2014 | Sep. 30, 2014 | Jun. 30, 2014 | Mar. 31, 2014 | Sep. 30, 2015 | Sep. 30, 2014 | Dec. 31, 2014 | Dec. 31, 2013 |
Schedule of Non-Operating Income (Expense) [Line Items] | |||||||||||||
Gain on sales of businesses | $ (26,253) | $ 2,918 | $ 0 | $ (23,335) | $ 0 | ||||||||
Foreign currency (loss) gain, net | (12,972) | (10,564) | (16,191) | (2,618) | |||||||||
Gain on formation of joint venture | 0 | 0 | 5,972 | 0 | |||||||||
Additional gain on sale of Classified Ventures | 4,827 | 0 | |||||||||||
Gain on Berkshire marketable equity securities exchange | 0 | 0 | 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 | 0 | 0 | (3,044) | |||||||||
Other, net | (1,233) | (159) | (1,158) | 1,923 | |||||||||
Total Other Non-Operating (Expense) Income | (40,458) | $ 11,678 | $ (1,105) | $ 387,346 | (10,723) | $ 268,114 | $ 133,273 | (29,885) | 390,664 | $ 778,010 | $ (23,751) | ||
Classified Ventures LLC [Member] | |||||||||||||
Schedule of Non-Operating Income (Expense) [Line Items] | |||||||||||||
Additional gain on sale of Classified Ventures | $ 0 | $ 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 Comprehensi63
Accumulated Other Comprehensive Income (Loss) (Components of OCI) (Details 1) - USD ($) $ in Thousands | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2015 | Sep. 30, 2014 | Sep. 30, 2015 | Sep. 30, 2014 | |
Foreign currency translation adjustments: | ||||
Translation adjustments arising during the period, before tax | $ (10,548) | $ (9,777) | $ (17,387) | $ (7,111) |
Translation adjustments arising during the period, income tax | 0 | 0 | 0 | 0 |
Translation adjustments arising during the period, after tax | (10,548) | (9,777) | (17,387) | (7,111) |
Adjustment for sales of businesses with foreign operations, before tax | 6,026 | 0 | 5,501 | 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 | 6,026 | 0 | 5,501 | 0 |
Total foreign currency translation adjustments, before tax | (4,522) | (9,777) | (11,886) | (7,111) |
Total foreign currency translation adjustments, income tax | 0 | 0 | 0 | 0 |
Total foreign currency translation adjustments, after tax | (4,522) | (9,777) | (11,886) | (7,111) |
Unrealized (losses) gains on available-for-sale securities: | ||||
Unrealized (losses) gains for the period, before tax | 3,836 | 9,734 | (16,497) | 46,139 |
Unrealized (losses) gains for the period, tax | (1,535) | (3,894) | 6,599 | (18,456) |
Unrealized (losses) gains for the period, after tax | 2,301 | 5,840 | (9,898) | 27,683 |
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 | 0 | 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 | 106,110 | ||
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 | (159,164) | ||
Total unrealized gains (losses) on available-for-sale securities, before tax | 3,836 | 9,734 | (16,497) | (219,135) |
Total unrealized (losses) gains on available-for-sale securities, income tax | 6,599 | 87,654 | ||
Total unrealized (losses) gains on available-for-sale securities, after tax | (9,898) | (131,481) | ||
Pension and other postretirement plans: | ||||
Amortization of net prior service cost (credit) included in net income | 68 | (101) | 207 | (305) |
Amortization of net prior service cost (credit) included in net income, income tax | (27) | 41 | (82) | 122 |
Amortization of net prior service cost (credit) included in net income, after tax | 41 | (60) | 125 | (183) |
Amortization of net actuarial gain included in net income, before tax | (5,676) | (7,425) | (4,419) | (22,032) |
Amortization of net actuarial gain included in net income, income tax | 2,271 | 2,970 | 1,768 | 8,813 |
Amortization of net actuarial gain included in net income, after tax | (3,405) | (4,455) | (2,651) | (13,219) |
Curtailment gains included in net income, before tax | 51 | 0 | 51 | 0 |
Curtailment gains included in net income, income tax | (21) | 0 | (21) | 0 |
Curtailment gains included in net income, after tax | 30 | 0 | 30 | 0 |
Curtailment and settlement included in distribution to Cable ONE, before tax | 1,403 | 0 | 1,403 | 0 |
Curtailment and settlement included in distribution to Cable ONE, income tax | (561) | 0 | (561) | 0 |
Curtailment and settlement included in distribution to Cable ONE, after tax | 842 | 0 | 842 | 0 |
Total pension and other postretirement plans, before tax | (4,154) | (7,526) | (2,758) | (22,337) |
Total pension and other postretirement plans, income tax | 1,662 | 3,011 | 1,104 | 8,935 |
Total pension and other postretirement plans, after tax | (2,492) | (4,515) | (1,654) | (13,402) |
Cash flow hedge: | ||||
Gain for the period, before tax | 0 | 230 | 179 | 641 |
Gain for the period, income tax | 0 | (92) | (71) | (256) |
Gain for the period, after tax | 0 | 138 | 108 | 385 |
Other Comprehensive Loss, before tax | (4,840) | (7,339) | (30,962) | (247,942) |
Other Comprehensive Loss, income tax | 127 | (975) | 7,632 | 96,333 |
Other Comprehensive Loss, after tax | $ (4,713) | $ (8,314) | $ (23,330) | $ (151,609) |
Accumulated Other Comprehensi64
Accumulated Other Comprehensive Income (Loss) (AOCI balances) (Details 2) - USD ($) $ in Thousands | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2015 | Sep. 30, 2014 | Sep. 30, 2015 | Sep. 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 | (26,414) | |||
Net amount reclassified from accumulated other comprehensive income | 3,084 | |||
Other Comprehensive Loss, Net of Tax | $ (4,713) | $ (8,314) | (23,330) | $ (151,609) |
Accumulated Other Comprehensive Income, ending balance | 430,150 | 430,150 | ||
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 | (17,387) | |||
Net amount reclassified from accumulated other comprehensive income | 5,501 | |||
Other Comprehensive Loss, Net of Tax | (11,886) | |||
Accumulated Other Comprehensive Income, ending balance | (3,338) | (3,338) | ||
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 | (9,898) | |||
Net amount reclassified from accumulated other comprehensive income | 0 | |||
Other Comprehensive Loss, Net of Tax | (9,898) | |||
Accumulated Other Comprehensive Income, ending balance | 42,232 | 42,232 | ||
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 | 842 | |||
Net amount reclassified from accumulated other comprehensive income | (2,496) | |||
Other Comprehensive Loss, Net of Tax | (1,654) | |||
Accumulated Other Comprehensive Income, ending balance | 391,256 | 391,256 | ||
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 Comprehensi65
Accumulated Other Comprehensive Income (Loss) (Reclassifications out of AOCI) (Details 3) - USD ($) $ in Thousands | 3 Months Ended | 9 Months Ended | 12 Months Ended | |||||||||
Sep. 30, 2015 | Jun. 30, 2015 | Mar. 31, 2015 | Dec. 31, 2014 | Sep. 30, 2014 | Jun. 30, 2014 | Mar. 31, 2014 | Sep. 30, 2015 | Sep. 30, 2014 | Dec. 31, 2014 | Dec. 31, 2013 | ||
Reclassification Adjustment Out Of Accumulated Other Comprehensive Income [Line Items] | ||||||||||||
Other (expense) income, net | $ 40,458 | $ (11,678) | $ 1,105 | $ (387,346) | $ 10,723 | $ (268,114) | $ (133,273) | $ 29,885 | $ (390,664) | $ (778,010) | $ 23,751 | |
Income tax on unrealized gains on available-for-sale securities reclassified out of accumulated other comprehensive income | 0 | 106,110 | ||||||||||
Amortization of net prior service cost (credit) included in net income | 68 | (101) | 207 | (305) | ||||||||
Amortization of net actuarial gain included in net income | (5,676) | (7,425) | (4,419) | (22,032) | ||||||||
Income Before Tax | 261,435 | (59,525) | 589 | (478,017) | (26,330) | (406,513) | (166,843) | 202,499 | (599,686) | (1,077,703) | (105,231) | |
(Benefit) Provision for Income Taxes | (30,500) | 19,600 | 900 | 172,000 | 16,100 | 61,900 | 62,300 | (10,000) | 140,300 | 312,300 | 40,500 | |
Interest expense | 7,830 | 8,348 | 8,501 | 8,922 | 9,298 | 8,525 | 8,788 | 24,679 | 26,610 | 35,533 | 35,931 | |
Curtailment gains | (51) | 0 | (51) | 0 | ||||||||
Income Net of Tax | 230,935 | $ (39,925) | $ 1,489 | $ (306,017) | (10,230) | $ (344,613) | $ (104,543) | 192,499 | (459,386) | $ (765,403) | $ (64,731) | |
Reclassification out of Accumulated Other Comprehensive Income [Member] | ||||||||||||
Reclassification Adjustment Out Of Accumulated Other Comprehensive Income [Line Items] | ||||||||||||
Income Net of Tax | 2,692 | (4,385) | 3,084 | (172,179) | ||||||||
Foreign Currency Translation Adjustment [Member] | Reclassification out of Accumulated Other Comprehensive Income [Member] | ||||||||||||
Reclassification Adjustment Out Of Accumulated Other Comprehensive Income [Line Items] | ||||||||||||
Other (expense) income, net | 6,026 | 0 | 5,501 | 0 | ||||||||
Unrealized Gain on Available-for-Sale Securities [Member] | Reclassification out of Accumulated Other Comprehensive Income [Member] | ||||||||||||
Reclassification Adjustment Out Of Accumulated Other Comprehensive Income [Line Items] | ||||||||||||
Other (expense) income, net | 0 | 0 | 0 | (265,274) | ||||||||
Income tax on unrealized gains on available-for-sale securities reclassified out of accumulated other comprehensive income | [1] | 0 | 0 | 0 | 106,110 | |||||||
(Benefit) Provision for Income Taxes | 1,200 | |||||||||||
Income Net of Tax | 0 | 0 | 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 | |||||||||||
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] | 68 | (101) | 207 | (305) | |||||||
Amortization of net actuarial gain included in net income | [2] | (5,676) | (7,425) | (4,419) | (22,032) | |||||||
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 | (5,557) | (7,526) | (4,161) | (22,337) | ||||||||
(Benefit) Provision for Income Taxes | 2,223 | 3,011 | 1,665 | 8,935 | ||||||||
Curtailment gains | [2] | 51 | 0 | 51 | 0 | |||||||
Income Net of Tax | (3,334) | (4,515) | (2,496) | (13,402) | ||||||||
Cash Flow Hedge [Member] | Reclassification out of Accumulated Other Comprehensive Income [Member] | ||||||||||||
Reclassification Adjustment Out Of Accumulated Other Comprehensive Income [Line Items] | ||||||||||||
(Benefit) Provision for Income Taxes | 0 | (87) | (53) | (258) | ||||||||
Interest expense | 0 | 217 | 132 | 645 | ||||||||
Income Net of Tax | $ 0 | $ 130 | $ 79 | $ 387 | ||||||||
[1] | Benefits of $1.2 million were recorded in Provision for Income Taxes related to the realized loss for the nine months ended September 30, 2014. The remaining $107.3 million for the nine months ended September 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) | 9 Months Ended | |||
Sep. 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 [Member] | Higher Education [Member] | ||||
Loss Contingencies [Line Items] | ||||
Number of pending program reviews | program_review | 5 | |||
Title IV participating institutions including Broomall PA and Pittsburgh PA [Member] | Higher Education [Member] | Sale of KHE Campuses business [Member] | ||||
Loss Contingencies [Line Items] | ||||
Number of pending program reviews | program_review | 4 | |||
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) $ in Millions | 3 Months Ended | 9 Months Ended |
Sep. 30, 2015USD ($) | Sep. 30, 2015Segment | |
Business Segments [Line Items] | ||
Number of reportable segments | 5 | |
Periods from 2011 to Q2 2015 [Member] | Test Preparation [Member] | Reportable Subsegments [Member] | Education [Member] | Operating Segments [Member] | ||
Business Segments [Line Items] | ||
Immaterial Error Correction Amount | $ | $ 3 |
Business Segments (Information
Business Segments (Information by Operating Segment) (Details 1) - USD ($) $ in Thousands | 3 Months Ended | 9 Months Ended | 12 Months Ended | ||||||||
Sep. 30, 2015 | Jun. 30, 2015 | Mar. 31, 2015 | Dec. 31, 2014 | Sep. 30, 2014 | Jun. 30, 2014 | Mar. 31, 2014 | Sep. 30, 2015 | Sep. 30, 2014 | Dec. 31, 2014 | Dec. 31, 2013 | |
Segment Reporting Information [Line Items] | |||||||||||
Operating Revenues | $ 641,432 | $ 680,890 | $ 647,425 | $ 727,625 | $ 703,205 | $ 673,582 | $ 632,620 | $ 1,969,747 | $ 2,009,407 | $ 2,737,032 | $ 2,600,602 |
Income (Loss) from Operations | (213,723) | 56,225 | 8,862 | 99,024 | 41,209 | 54,780 | 37,707 | (148,636) | 133,695 | 232,720 | 149,434 |
Equity in earnings (losses) of affiliates, net | 95 | (353) | (404) | 202 | 4,613 | 91,503 | 4,052 | (662) | 100,168 | 100,370 | 13,215 |
Interest Expense, Net | (7,349) | (8,025) | (7,942) | (8,555) | (8,769) | (7,884) | (8,189) | (23,316) | (24,841) | (33,397) | (33,667) |
Other income (expense), net | (40,458) | 11,678 | (1,105) | 387,346 | (10,723) | 268,114 | 133,273 | (29,885) | 390,664 | 778,010 | (23,751) |
Income (loss) from Continuing Operations Before Income Taxes | (261,435) | 59,525 | (589) | 478,017 | 26,330 | 406,513 | 166,843 | (202,499) | 599,686 | 1,077,703 | 105,231 |
Depreciation of property, plant and equipment | 14,460 | 25,609 | 22,197 | 18,618 | 18,664 | 18,201 | 19,430 | 62,266 | 56,295 | 74,913 | 101,171 |
Amortization Of Intangible Assets And Impairment Of Goodwill And Other Long-Lived Assets | 253,103 | 11,523 | 4,738 | 269,364 | 12,972 | 35,489 | 15,169 | ||||
Amortization Of Intangible Assets And Impairment Of Intangibles And Other Long-Lived Assets | 22,517 | 7,354 | 2,936 | 2,682 | |||||||
Amortization of intangible assets | 4,512 | 4,647 | 4,738 | 5,215 | 7,354 | 2,936 | 2,682 | 13,897 | 12,972 | 18,187 | 11,919 |
Impairment of Goodwill and Other Long-lived Assets | 248,591 | 0 | 255,467 | 0 | |||||||
Net Pension (Credit) Expense | (16,255) | (12,415) | (12,407) | (18,686) | (14,237) | (18,807) | (13,052) | (41,077) | (46,095) | (64,780) | (20,727) |
Identifiable Assets | 2,969,058 | 4,384,167 | 2,969,058 | 4,384,167 | |||||||
Investments in Marketable Equity Securities | 312,892 | 193,793 | 312,892 | 193,793 | |||||||
Investments in Affiliates | 53,198 | 19,811 | 53,198 | 19,811 | |||||||
Prepaid Pension Cost | 1,189,181 | 1,152,488 | 1,189,181 | 1,152,488 | |||||||
Assets Held for Sale | 0 | 2,060 | 0 | 2,060 | |||||||
Total Assets | 4,524,329 | 5,752,319 | 4,524,329 | 5,752,319 | |||||||
Operating Segments [Member] | Education [Member] | |||||||||||
Segment Reporting Information [Line Items] | |||||||||||
Operating Revenues | 481,746 | 523,625 | 500,602 | 551,381 | 543,918 | 542,964 | 522,154 | 1,505,973 | 1,609,036 | 2,160,417 | 2,163,734 |
Income (Loss) from Operations | (242,777) | 15,848 | (22,849) | 33,413 | 12,551 | 17,637 | 1,862 | (249,778) | 32,050 | 65,463 | 50,989 |
Depreciation of property, plant and equipment | 10,637 | 21,980 | 18,528 | 14,713 | 15,237 | 15,372 | 16,416 | 51,145 | 47,024 | 61,737 | 89,622 |
Amortization Of Intangible Assets And Impairment Of Goodwill And Other Long-Lived Assets | 249,930 | 8,343 | 1,507 | 259,780 | 5,649 | 24,941 | 11,753 | ||||
Amortization Of Intangible Assets And Impairment Of Intangibles And Other Long-Lived Assets | 19,292 | 1,927 | 1,798 | 1,924 | |||||||
Amortization of intangible assets | 1,339 | 1,927 | 4,313 | 5,649 | |||||||
Impairment of Goodwill and Other Long-lived Assets | 248,591 | 0 | 255,467 | 0 | |||||||
Net Pension (Credit) Expense | 7,525 | 3,947 | 3,947 | 3,855 | 3,854 | 3,566 | 4,143 | 15,419 | 11,563 | 15,418 | 16,538 |
Identifiable Assets | 1,249,359 | 1,781,543 | 1,249,359 | 1,781,543 | |||||||
Operating Segments [Member] | Education [Member] | Reportable Subsegments [Member] | Higher Education [Member] | |||||||||||
Segment Reporting Information [Line Items] | |||||||||||
Operating Revenues | 203,529 | 249,882 | 681,814 | 755,597 | |||||||
Income (Loss) from Operations | 3,153 | 5,391 | 28,510 | 39,487 | |||||||
Depreciation of property, plant and equipment | 4,066 | 7,320 | 13,688 | 22,140 | |||||||
Net Pension (Credit) Expense | 3,964 | 2,628 | 9,028 | 7,885 | |||||||
Identifiable Assets | 227,406 | 749,421 | 227,406 | 749,421 | |||||||
Operating Segments [Member] | Education [Member] | Reportable Subsegments [Member] | Test Preparation [Member] | |||||||||||
Segment Reporting Information [Line Items] | |||||||||||
Operating Revenues | 83,706 | 85,108 | 233,313 | 234,010 | |||||||
Income (Loss) from Operations | 13,620 | 6,980 | 16,365 | (3,552) | |||||||
Depreciation of property, plant and equipment | 2,052 | 2,865 | 7,205 | 9,721 | |||||||
Net Pension (Credit) Expense | 775 | 722 | 2,325 | 2,166 | |||||||
Identifiable Assets | 147,998 | 167,055 | 147,998 | 167,055 | |||||||
Operating Segments [Member] | Education [Member] | Reportable Subsegments [Member] | Kaplan International [Member] | |||||||||||
Segment Reporting Information [Line Items] | |||||||||||
Operating Revenues | 192,702 | 207,615 | 585,486 | 615,507 | |||||||
Income (Loss) from Operations | 8,295 | 13,853 | 33,585 | 40,609 | |||||||
Depreciation of property, plant and equipment | 4,277 | 4,951 | 14,004 | 14,546 | |||||||
Net Pension (Credit) Expense | 114 | 89 | 326 | 267 | |||||||
Identifiable Assets | 811,672 | 838,148 | 811,672 | 838,148 | |||||||
Operating Segments [Member] | Education [Member] | Reportable Subsegments [Member] | Kaplan Corporate and Other [Member] | |||||||||||
Segment Reporting Information [Line Items] | |||||||||||
Operating Revenues | 1,905 | 1,492 | 5,723 | 4,891 | |||||||
Income (Loss) from Operations | (267,882) | (13,651) | (328,333) | (44,608) | |||||||
Depreciation of property, plant and equipment | 242 | 101 | 16,248 | 617 | |||||||
Net Pension (Credit) Expense | 2,672 | 415 | 3,740 | 1,245 | |||||||
Identifiable Assets | 62,283 | 26,919 | 62,283 | 26,919 | |||||||
Operating Segments [Member] | Education [Member] | Intersubsegment Eliminations [Member] | |||||||||||
Segment Reporting Information [Line Items] | |||||||||||
Operating Revenues | (96) | (179) | (363) | (969) | |||||||
Income (Loss) from Operations | 37 | (22) | 95 | 114 | |||||||
Operating Segments [Member] | Television Broadcasting [Member] | |||||||||||
Segment Reporting Information [Line Items] | |||||||||||
Operating Revenues | 89,693 | 90,753 | 83,564 | 102,446 | 87,442 | 88,297 | 85,651 | 264,010 | 261,390 | 363,836 | 308,306 |
Income (Loss) from Operations | 40,526 | 42,014 | 38,562 | 54,380 | 44,979 | 44,088 | 44,386 | 121,102 | 133,452 | 187,833 | 145,192 |
Depreciation of property, plant and equipment | 2,237 | 2,125 | 2,109 | 2,228 | 2,148 | 2,039 | 1,994 | 6,471 | 6,181 | 8,409 | 8,746 |
Amortization Of Intangible Assets And Impairment Of Goodwill And Other Long-Lived Assets | 63 | 63 | 63 | 189 | 0 | 32 | 0 | ||||
Amortization Of Intangible Assets And Impairment Of Intangibles And Other Long-Lived Assets | 32 | 0 | 0 | 0 | |||||||
Net Pension (Credit) Expense | 425 | 391 | 391 | 338 | 338 | 358 | 320 | 1,207 | 1,016 | 1,355 | 3,961 |
Identifiable Assets | 309,232 | 305,426 | 309,232 | 305,426 | |||||||
Operating Segments [Member] | Other Businesses [Member] | |||||||||||
Segment Reporting Information [Line Items] | |||||||||||
Operating Revenues | 70,052 | 66,512 | 63,259 | 73,798 | 71,845 | 42,351 | 24,913 | 199,823 | 139,109 | 212,907 | 128,803 |
Income (Loss) from Operations | (3,059) | (2,161) | (5,162) | 5,948 | (9,292) | (6,995) | (10,747) | (10,382) | (27,034) | (21,086) | (23,468) |
Depreciation of property, plant and equipment | 1,335 | 1,254 | 1,302 | 1,430 | 1,201 | 780 | 520 | 3,891 | 2,501 | 3,931 | 2,177 |
Amortization Of Intangible Assets And Impairment Of Goodwill And Other Long-Lived Assets | 3,110 | 3,117 | 3,168 | 9,395 | 7,323 | 10,516 | 3,416 | ||||
Amortization Of Intangible Assets And Impairment Of Intangibles And Other Long-Lived Assets | 3,193 | 5,427 | 1,138 | 758 | |||||||
Net Pension (Credit) Expense | 328 | 186 | 193 | 191 | 191 | 202 | 164 | 707 | 557 | 748 | 610 |
Identifiable Assets | 472,272 | 518,807 | 472,272 | 518,807 | |||||||
Operating Segments [Member] | Corporate Office [Member] | |||||||||||
Segment Reporting Information [Line Items] | |||||||||||
Operating Revenues | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 |
Income (Loss) from Operations | (8,413) | 524 | (1,689) | 5,283 | (7,029) | 50 | 2,206 | (9,578) | (4,773) | 510 | (23,279) |
Depreciation of property, plant and equipment | 251 | 250 | 258 | 247 | 78 | 10 | 500 | 759 | 589 | 836 | 626 |
Amortization Of Intangible Assets And Impairment Of Goodwill And Other Long-Lived Assets | 0 | 0 | 0 | 0 | 0 | 0 | 0 | ||||
Amortization Of Intangible Assets And Impairment Of Intangibles And Other Long-Lived Assets | 0 | 0 | 0 | 0 | |||||||
Net Pension (Credit) Expense | (24,533) | (16,939) | (16,938) | (23,070) | (18,620) | (22,933) | (17,679) | (58,410) | (59,231) | (82,301) | (41,836) |
Identifiable Assets | 938,195 | 1,778,391 | 938,195 | 1,778,391 | |||||||
Intersegment Elimination [Member] | |||||||||||
Segment Reporting Information [Line Items] | |||||||||||
Operating Revenues | $ (59) | $ 0 | $ 0 | $ 0 | $ 0 | $ (30) | $ (98) | $ (59) | $ (128) | $ (128) | $ (241) |