Document and Entity Information
Document and Entity Information - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2018 | Feb. 20, 2019 | Jun. 29, 2018 | |
Entity Information [Line Items] | |||
Document Type | 10-K | ||
Amendment Flag | false | ||
Document Period End Date | Dec. 31, 2018 | ||
Document Fiscal Period Focus | FY | ||
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 | ||
Entity Small Business | false | ||
Entity Emerging Growth Company | false | ||
Entity Shell Company | false | ||
Entity Current Reporting Status | Yes | ||
Entity Voluntary Filers | No | ||
Entity Well-known Seasoned Issuer | Yes | ||
Entity Public Float | $ 2,500 | ||
Class A Common Stock [Member] | |||
Entity Information [Line Items] | |||
Entity Common Stock, Shares Outstanding (in shares) | 964,001 | ||
Class B Common Stock [Member] | |||
Entity Information [Line Items] | |||
Entity Common Stock, Shares Outstanding (in shares) | 4,353,623 |
Consolidated Statements of Oper
Consolidated Statements of Operations - USD ($) shares in Thousands, $ in Thousands | 3 Months Ended | 12 Months Ended | |||||||||
Dec. 31, 2018 | Sep. 30, 2018 | Jun. 30, 2018 | Mar. 31, 2018 | Dec. 31, 2017 | Sep. 30, 2017 | Jun. 30, 2017 | Mar. 31, 2017 | Dec. 31, 2018 | Dec. 31, 2017 | Dec. 31, 2016 | |
Income Statement [Abstract] | |||||||||||
Operating Revenues | $ 689,087 | $ 674,766 | $ 672,677 | $ 659,436 | $ 675,817 | $ 657,225 | $ 676,087 | $ 582,717 | $ 2,695,966 | $ 2,591,846 | $ 2,481,890 |
Operating Costs and Expenses | |||||||||||
Operating | 432,706 | 448,920 | 440,655 | 365,151 | 371,922 | 374,987 | 381,747 | 325,687 | 1,687,432 | 1,454,343 | 1,270,030 |
Selling, general and administrative | 152,624 | 131,081 | 141,378 | 225,045 | 225,477 | 228,051 | 208,973 | 225,289 | 650,128 | 887,790 | 896,097 |
Depreciation of property, plant and equipment | 14,813 | 13,648 | 13,619 | 14,642 | 15,984 | 16,002 | 15,871 | 14,652 | 56,722 | 62,509 | 64,620 |
Amortization of intangible assets | 13,362 | 12,269 | 11,399 | 10,384 | 12,897 | 10,923 | 10,531 | 6,836 | 47,414 | 41,187 | 26,671 |
Impairment of goodwill and other long-lived assets | 0 | 8,109 | 0 | 0 | 78 | 312 | 9,224 | 0 | 8,109 | 9,614 | 1,603 |
Total Operating Costs and Expenses | 613,505 | 614,027 | 607,051 | 615,222 | 626,358 | 630,275 | 626,346 | 572,464 | 2,449,805 | 2,455,443 | 2,259,021 |
Income from Operations | 75,582 | 60,739 | 65,626 | 44,214 | 49,459 | 26,950 | 49,741 | 10,253 | 246,161 | 136,403 | 222,869 |
Equity in earnings (losses) of affiliates, net | 1,426 | 9,537 | 931 | 2,579 | (4,697) | (532) | 1,331 | 649 | 14,473 | (3,249) | (7,937) |
Interest income | 1,469 | 611 | 1,901 | 1,372 | 3,184 | 861 | 1,173 | 1,363 | 5,353 | 6,581 | 3,093 |
Interest expense | (6,531) | (6,135) | (17,165) | (8,071) | (8,103) | (8,619) | (9,035) | (8,129) | (37,902) | (33,886) | (35,390) |
Debt extinguishment costs | 0 | 0 | (11,378) | 0 | (11,378) | 0 | 0 | ||||
Non-operating pension and postretirement benefit income, net | 53,900 | 22,214 | 23,041 | 21,386 | 17,657 | 17,621 | 18,620 | 18,801 | 120,541 | 72,699 | 80,665 |
Loss on marketable equity securities, net | (44,149) | 44,962 | (2,554) | (14,102) | (15,843) | 0 | 0 | ||||
Other income (expense), net | (12,559) | 3,142 | 2,333 | 9,187 | (2,640) | 1,963 | 4,069 | 849 | 2,103 | 4,241 | (12,642) |
Income Before Income Taxes | 69,138 | 135,070 | 62,735 | 56,565 | 54,860 | 38,244 | 65,899 | 23,786 | 323,508 | 182,789 | 250,658 |
Provision for (Benefit from) Income Taxes | 12,400 | 10,000 | 16,100 | 13,600 | (159,700) | 13,400 | 23,900 | 2,700 | 52,100 | (119,700) | 81,200 |
Net Income | 56,738 | 125,070 | 46,635 | 42,965 | 214,560 | 24,844 | 41,999 | 21,086 | 271,408 | 302,489 | 169,458 |
Net Income Attributable to Noncontrolling Interests | (53) | (6) | (69) | (74) | (382) | (60) | (3) | 0 | (202) | (445) | (868) |
Net Income (Loss) Attributable to Parent | $ 56,685 | $ 125,064 | $ 46,566 | $ 42,891 | $ 214,178 | $ 24,784 | $ 41,996 | $ 21,086 | $ 271,206 | $ 302,044 | $ 168,590 |
Per Share Information Attributable to Graham Holdings Company Common Stockholders | |||||||||||
Basic net income per common share (in usd per share) | $ 10.69 | $ 23.43 | $ 8.69 | $ 7.84 | $ 38.76 | $ 4.45 | $ 7.51 | $ 3.77 | $ 50.55 | $ 54.24 | $ 29.95 |
Basic average number of common shares outstanding (in shares) | 5,270 | 5,302 | 5,325 | 5,436 | 5,473 | 5,518 | 5,539 | 5,535 | 5,333 | 5,516 | 5,559 |
Diluted net income per common share (in usd per share) | $ 10.61 | $ 23.28 | $ 8.63 | $ 7.78 | $ 38.52 | $ 4.42 | $ 7.46 | $ 3.75 | $ 50.20 | $ 53.89 | $ 29.80 |
Diluted average number of common shares outstanding (in shares) | 5,309 | 5,337 | 5,362 | 5,473 | 5,509 | 5,554 | 5,577 | 5,569 | 5,370 | 5,552 | 5,589 |
Consolidated Statements of Comp
Consolidated Statements of Comprehensive Income (Loss) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2018 | Dec. 31, 2017 | Dec. 31, 2016 | |
Statement of Comprehensive Income [Abstract] | |||
Net Income | $ 271,408 | $ 302,489 | $ 169,458 |
Foreign currency translation adjustments: | |||
Translation adjustments arising during the year | (35,584) | 33,175 | (22,149) |
Adjustment for sales of businesses with foreign operations | 0 | 137 | 0 |
Total foreign currency translation adjustments | (35,584) | 33,312 | (22,149) |
Unrealized gains on available-for-sale securities: | |||
Unrealized gains for the year | 0 | 112,086 | 55,507 |
Reclassification adjustment for realization of loss on sale of available-for-sale securities included in net income | 0 | 0 | 1,879 |
Total unrealized gains on available-for-sale securities | 0 | 112,086 | 57,386 |
Pension and other postretirement plans: | |||
Actuarial (loss) gain | (101,013) | 179,674 | (133,915) |
Prior service credit (cost) | 4,262 | (75) | 0 |
Amortization of net actuarial (gain) loss included in net income | (11,349) | (6,527) | 1,157 |
Amortization of net prior service (credit) cost included in net income | (947) | 477 | 419 |
Curtailments and settlements included in net income | (30,267) | 0 | (17,993) |
Total pension and other postretirement plans | (139,314) | 173,549 | (150,332) |
Cash flow hedge gain (loss) | 551 | 112 | (334) |
Other Comprehensive (Loss) Income, Before Tax | (174,347) | 319,059 | (115,429) |
Income tax benefit (expense) related to items of other comprehensive (loss) income | 37,510 | (90,923) | 37,235 |
Other Comprehensive (Loss) Income, Net of Tax | (136,837) | 228,136 | (78,194) |
Comprehensive Income | 134,571 | 530,625 | 91,264 |
Comprehensive income attributable to noncontrolling interests | (202) | (445) | (868) |
Total Comprehensive Income Attributable to Graham Holdings Company | $ 134,369 | $ 530,180 | $ 90,396 |
Consolidated Balance Sheets
Consolidated Balance Sheets - USD ($) $ in Thousands | Dec. 31, 2018 | Dec. 31, 2017 |
Current Assets | ||
Cash and cash equivalents | $ 253,256 | $ 390,014 |
Restricted cash | 10,859 | 17,552 |
Investments in marketable equity securities and other investments | 514,581 | 557,153 |
Accounts receivable, net | 582,280 | 620,319 |
Income taxes receivable | 19,166 | 23,901 |
Inventories and contracts in progress | 69,477 | 60,612 |
Other current assets | 82,723 | 66,253 |
Total Current Assets | 1,532,342 | 1,735,804 |
Property, Plant and Equipment, Net | 293,085 | 259,358 |
Investments in Affiliates | 143,813 | 128,590 |
Goodwill, Net | 1,297,712 | 1,299,710 |
Indefinite-Lived Intangible Assets | 99,052 | 102,195 |
Amortized Intangible Assets, Net | 263,261 | 237,976 |
Prepaid Pension Cost | 1,003,558 | 1,056,777 |
Deferred Income Taxes | 13,388 | 15,367 |
Deferred Charges and Other Assets | 117,830 | 102,046 |
Total Assets | 4,764,041 | 4,937,823 |
Current Liabilities | ||
Accounts payable and accrued liabilities | 486,578 | 526,323 |
Deferred revenue | 308,728 | 339,454 |
Income taxes payable | 10,496 | 6,109 |
Current portion of long-term debt | 6,360 | 6,726 |
Total Current Liabilities | 812,162 | 878,612 |
Accrued Compensation and Related Benefits | 179,652 | 213,889 |
Other Liabilities | 57,901 | 65,977 |
Deferred Income Taxes | 322,421 | 362,701 |
Mandatorily Redeemable Noncontrolling Interest | 0 | 10,331 |
Long-Term Debt | 470,777 | 486,561 |
Total Liabilities | 1,842,913 | 2,018,071 |
Commitments and Contingencies (Notes 17 and 18) | ||
Redeemable Noncontrolling Interests | 4,346 | 4,607 |
Preferred Stock, $1 par value; 977,000 shares authorized, none issued | 0 | 0 |
Common Stockholders’ Equity | ||
Capital in excess of par value | 378,837 | 370,700 |
Retained earnings | 6,236,125 | 5,791,724 |
Accumulated other comprehensive income, net of taxes | ||
Cumulative foreign currency translation adjustment | (29,270) | 6,314 |
Unrealized gain on available-for-sale securities | 0 | 194,889 |
Unrealized gain on pensions and other postretirement plans | 232,836 | 334,536 |
Cash flow hedge | 263 | (184) |
Cost of 14,699,041 and 14,495,506 shares of Class B common stock held in treasury | (3,922,009) | (3,802,834) |
Total Equity | 2,916,782 | 2,915,145 |
Total Liabilities and Equity | 4,764,041 | 4,937,823 |
Class A Common Stock [Member] | ||
Common Stockholders’ Equity | ||
Common stock | 964 | 964 |
Class B Common Stock [Member] | ||
Common Stockholders’ Equity | ||
Common stock | $ 19,036 | $ 19,036 |
Consolidated Balance Sheets (Pa
Consolidated Balance Sheets (Parentheticals) - $ / shares | Dec. 31, 2018 | Dec. 31, 2017 |
Preferred Stock, par value per share | $ 1 | $ 1 |
Preferred Stock, shares authorized | 977,000 | 977,000 |
Preferred Stock, shares issued | 0 | 0 |
Class A Common Stock [Member] | ||
Common Stock, par value per share | $ 1 | $ 1 |
Common Stock, shares authorized | 7,000,000 | 7,000,000 |
Common Stock, shares issued | 964,001 | 964,001 |
Common Stock, shares outstanding | 964,001 | 964,001 |
Class B Common Stock [Member] | ||
Common Stock, par value per share | $ 1 | $ 1 |
Common Stock, shares authorized | 40,000,000 | 40,000,000 |
Common Stock, shares issued | 19,035,999 | 19,035,999 |
Common Stock, shares outstanding | 4,336,958 | 4,540,493 |
Treasury Stock | 14,699,041 | 14,495,506 |
Consolidated Statements of Cash
Consolidated Statements of Cash Flows - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2018 | Dec. 31, 2017 | Dec. 31, 2016 | |
Cash Flows from Operating Activities | |||
Net Income | $ 271,408 | $ 302,489 | $ 169,458 |
Adjustments to reconcile net income to net cash provided by operating activities: | |||
Depreciation, amortization and goodwill and other long-lived asset impairment | 112,245 | 113,310 | 92,894 |
Net pension benefit | (100,948) | (59,039) | (67,097) |
Early retirement and special separation benefit program expense | 0 | 1,825 | 0 |
Loss on marketable equity securities and cost method investments, net | 4,180 | 0 | 0 |
Stock-based compensation expense, net | 6,412 | 10,169 | 13,418 |
Debt extinguishment costs | 10,563 | 0 | 0 |
Foreign exchange loss (gain) | 3,844 | (3,310) | 39,890 |
Net (gain) loss on sales and disposition of businesses | (8,157) | 569 | (22,163) |
Net (gain) loss on dispositions, sales or write-downs of marketable equity securities and cost method investments | (148) | 200 | 30,449 |
Equity in (earnings) losses of affiliates, net of distributions | (10,606) | 3,646 | 8,859 |
(Benefit from) provision for deferred income taxes | (7,123) | (146,452) | 10,070 |
Net (gain) loss on sales or write-downs of property, plant and equipment | (1,642) | 413 | (32,362) |
Change in operating assets and liabilities: | |||
Accounts receivable, net | 59,847 | 11,086 | (47,892) |
Inventories | (7,351) | (541) | (2,422) |
Accounts payable and accrued liabilities | (44,892) | 19,380 | 58,147 |
Deferred revenue | 14,801 | 13,903 | 16,552 |
Income taxes receivable/payable | 9,405 | 24,739 | 5,115 |
Other assets and other liabilities, net | (26,973) | (25,469) | (12,265) |
Other | 2,154 | 1,137 | 605 |
Net Cash Provided by Operating Activities | 287,019 | 268,055 | 261,256 |
Cash Flows from Investing Activities | |||
Investments in certain businesses, net of cash acquired | (111,546) | (299,938) | (245,084) |
Purchases of property, plant and equipment | (98,192) | (60,358) | (66,612) |
Proceeds from sales of marketable equity securities | 66,741 | 0 | 29,702 |
Purchases of marketable equity securities | (42,659) | 0 | (48,265) |
Advance related to Kaplan University transaction and loan to affiliate | (28,061) | (6,771) | (14,244) |
Investments in equity affiliates, cost method and other investments | (11,702) | (82,944) | (6,273) |
Net (payments) proceeds from sales of businesses, property, plant and equipment and other assets | (10,344) | 3,265 | 39,490 |
Return of investment in equity affiliates | 4,799 | 4,727 | 0 |
Net Cash Used in Investing Activities | (230,964) | (442,019) | (311,286) |
Cash Flows from Financing Activities | |||
Repayments of borrowings and early redemption premium | (417,159) | (7,715) | 0 |
Issuance of borrowings | 400,000 | 0 | 98,610 |
Common shares repurchased | (118,030) | (50,770) | (108,948) |
Dividends paid | (28,617) | (28,329) | (27,325) |
Purchase of noncontrolling interest and deferred payment of acquisition | (16,500) | (5,187) | (21,000) |
Payments of financing costs | (6,501) | 0 | (648) |
(Repayments of) proceeds from bank overdrafts | (5,717) | (9,505) | 14,429 |
Other | 165 | 1,400 | 1,805 |
Net Cash Used in Financing Activities | (192,359) | (100,106) | (43,077) |
Effect of Currency Exchange Rate Change | (7,147) | 10,820 | (11,029) |
Net Decrease in Cash and Cash Equivalents and Restricted Cash | (143,451) | (263,250) | (104,136) |
Cash and Cash Equivalents and Restricted Cash at Beginning of Year | 407,566 | 670,816 | 774,952 |
Cash and Cash Equivalents and Restricted Cash at End of Year | 264,115 | 407,566 | 670,816 |
Cash paid during the year for: | |||
Income taxes | 54,000 | 4,000 | 65,000 |
Interest | $ 42,000 | $ 33,000 | $ 30,000 |
Consolidated Statements of Chan
Consolidated Statements of Changes in Common Shareholders' Equity - USD ($) $ in Thousands | Total | Capital in Excess of Par Value [Member] | Retained Earnings [Member] | AOCI Attributable to Parent [Member] | Treasury Stock [Member] | Class A Common Stock [Member]Common Stock [Member] | Class B Common Stock [Member]Common Stock [Member] |
As of at Dec. 31, 2015 | $ 2,490,698 | $ 356,887 | $ 5,447,677 | $ 314,680 | $ (3,648,546) | $ 964 | $ 19,036 |
Increase (Decrease) in Stockholders' Equity [Roll Forward] | |||||||
Net income for the year | 169,458 | 169,458 | |||||
Net income attributable to redeemable noncontrolling interests | (868) | (868) | |||||
Change in redemption value of redeemable noncontrolling interests | (3,026) | (3,026) | |||||
Dividends paid on common stock | (27,325) | (27,325) | |||||
Repurchase of Class B common stock | (108,948) | (108,948) | |||||
Issuance of Class B common stock, net of restricted stock award forfeitures | (53) | (697) | 644 | ||||
Amortization of unearned stock compensation and stock option expense | 14,717 | 14,717 | |||||
Other Comprehensive Income (Loss), Net of Tax | (78,194) | ||||||
Other comprehensive income (loss), net of tax | (78,194) | (78,194) | |||||
Taxes arising from employee stock plans | 558 | 558 | |||||
Purchase of redeemable noncontrolling interest | 0 | ||||||
Exchange of redeemable noncontrolling interest | (4,076) | (4,076) | |||||
As of at Dec. 31, 2016 | 2,452,941 | 364,363 | 5,588,942 | 236,486 | (3,756,850) | 964 | 19,036 |
As of at Dec. 31, 2015 | 25,957 | ||||||
Increase (Decrease) in Temporary Equity [Roll Forward] | |||||||
Net income attributable to redeemable noncontrolling interests | 868 | ||||||
Change in redemption value of redeemable noncontrolling interests | 3,026 | ||||||
Purchase of redeemable noncontrolling interest | (24,031) | ||||||
Exchange of redeemable noncontrolling interest | (5,770) | ||||||
As of at Dec. 31, 2016 | 50 | ||||||
Increase (Decrease) in Stockholders' Equity [Roll Forward] | |||||||
Net income for the year | 302,489 | 302,489 | |||||
Acquisition of redeemable noncontrolling interest | 0 | ||||||
Net income attributable to redeemable noncontrolling interests | (445) | (445) | |||||
Change in redemption value of redeemable noncontrolling interests | (446) | (446) | |||||
Dividends paid on common stock | (28,329) | (28,329) | |||||
Repurchase of Class B common stock | (50,770) | (50,770) | |||||
Issuance of Class B common stock, net of restricted stock award forfeitures | 385 | (4,401) | 4,786 | ||||
Amortization of unearned stock compensation and stock option expense | 11,184 | 11,184 | |||||
Other Comprehensive Income (Loss), Net of Tax | 228,136 | 228,136 | |||||
Reclassification From Accumulated Other Comprehensive Income To Retained Earnings | 0 | (70,933) | 70,933 | ||||
As of at Dec. 31, 2017 | 2,915,145 | 370,700 | 5,791,724 | 535,555 | (3,802,834) | 964 | 19,036 |
Increase (Decrease) in Temporary Equity [Roll Forward] | |||||||
Acquisition of redeemable noncontrolling interest | 3,666 | ||||||
Net income attributable to redeemable noncontrolling interests | 445 | ||||||
Change in redemption value of redeemable noncontrolling interests | 446 | ||||||
As of at Dec. 31, 2017 | 4,607 | ||||||
Increase (Decrease) in Stockholders' Equity [Roll Forward] | |||||||
Net income for the year | 42,965 | ||||||
As of at Dec. 31, 2017 | 2,915,145 | 370,700 | 5,791,724 | 535,555 | (3,802,834) | 964 | 19,036 |
Increase (Decrease) in Stockholders' Equity [Roll Forward] | |||||||
Net income for the year | 271,408 | 271,408 | |||||
Net income attributable to redeemable noncontrolling interests | (202) | (202) | |||||
Change in redemption value of redeemable noncontrolling interests | 413 | 413 | |||||
Dividends paid on common stock | (28,617) | (28,617) | |||||
Repurchase of Class B common stock | (118,030) | (118,030) | |||||
Issuance of Class B common stock, net of restricted stock award forfeitures | (1,485) | (340) | (1,145) | ||||
Amortization of unearned stock compensation and stock option expense | 8,064 | 8,064 | |||||
Other Comprehensive Income (Loss), Net of Tax | (136,837) | (136,837) | |||||
Other | 0 | ||||||
As of at Dec. 31, 2018 | 2,916,782 | $ 378,837 | $ 6,236,125 | $ 203,829 | $ (3,922,009) | $ 964 | $ 19,036 |
As of at Dec. 31, 2017 | 4,607 | ||||||
Increase (Decrease) in Temporary Equity [Roll Forward] | |||||||
Net income attributable to redeemable noncontrolling interests | 202 | ||||||
Change in redemption value of redeemable noncontrolling interests | (413) | ||||||
Other | (50) | ||||||
As of at Dec. 31, 2018 | $ 4,346 |
Organization and Nature of Oper
Organization and Nature of Operations | 12 Months Ended |
Dec. 31, 2018 | |
Organization, Consolidation and Presentation of Financial Statements [Abstract] | |
Organization and Nature of Operations | ORGANIZATION AND NATURE OF OPERATIONS 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 seven television broadcasting stations. On March 22, 2018, Kaplan completed the sale of the institutional assets and operations of Kaplan University (KU) to an Indiana non-profit, public benefit corporation that is a subsidiary affiliated with Purdue University (Purdue) (see Note 3). The gain on the KU transaction is included in other income (expense), net, in the Consolidated Statement of Operations. Education —Kaplan, Inc. provides an extensive range of educational services for students and professionals. Kaplan’s various businesses comprise four categories: Kaplan International, Higher Education (KHE), Test Preparation (KTP) and Professional (U.S.). Media —The Company’s diversified media operations comprise television broadcasting, several websites and print publications, and a marketing solutions provider. Television broadcasting. As of December 31, 2018 , the Company owned seven television stations located in Houston, TX; Detroit, MI; Orlando, FL; San Antonio, TX; Roanoke, VA; and two stations in Jacksonville, FL. All stations are network-affiliated except for WJXT in Jacksonville, FL. Other —The Company’s other business operations include home health and hospice services and manufacturing. |
Summary of Significant Accounti
Summary of Significant Accounting Policies | 12 Months Ended |
Dec. 31, 2018 | |
Accounting Policies [Abstract] | |
Summary of Significant Accounting Policies | SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES Basis of Presentation and Principles of Consolidation. The accompanying Consolidated Financial Statements have been prepared in accordance with generally accepted accounting principles (GAAP) in the United States and include the assets, liabilities, results of operations and cash flows of the Company and its majority-owned and controlled subsidiaries. All significant intercompany accounts and transactions have been eliminated in consolidation. Use of Estimates. The preparation of financial statements in conformity with GAAP requires management to make estimates and judgments that affect the amounts reported in the financial statements. 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. On an ongoing basis, the Company evaluates its estimates and assumptions. Business Combinations. The purchase price of an acquisition is allocated to the assets acquired, including intangible assets, and liabilities assumed, based on their respective fair values at the acquisition date. Acquisition-related costs are expensed as incurred. The excess of the cost of an acquired entity over the net of the amounts assigned to the assets acquired and liabilities assumed is recognized as goodwill. The net assets and results of operations of an acquired entity are included in the Company’s Consolidated Financial Statements from the acquisition date. Cash and Cash Equivalents. Cash and cash equivalents consist of cash on hand, short-term investments with original maturities of three months or less and investments in money market funds with weighted average maturities of three months or less. Restricted Cash. Restricted cash represents amounts required to be held by non-U.S. higher education institutions for prepaid tuition pursuant to foreign government regulations. These regulations stipulate that the Company has a fiduciary responsibility to segregate certain funds to ensure these funds are only used for the benefit of eligible students. Concentration of Credit Risk. Cash and cash equivalents are maintained with several financial institutions domestically and internationally. Deposits held with banks may exceed the amount of insurance provided on such deposits. Generally, these deposits may be redeemed upon demand and are maintained with financial institutions with investment-grade credit ratings. The Company routinely assesses the financial strength of significant customers, and this assessment, combined with the large number and geographical diversity of its customers, limits the Company’s concentration of risk with respect to trade accounts receivable. Allowance for Doubtful Accounts. Accounts receivable have been reduced by an allowance for amounts that may be uncollectible in the future. This estimated allowance is based primarily on the aging category, historical collection experience and management’s evaluation of the financial condition of the customer. The Company generally considers an account past due or delinquent when a student or customer misses a scheduled payment. The Company writes off accounts receivable balances deemed uncollectible against the allowance for doubtful accounts following the passage of a certain period of time, or generally when the account is turned over for collection to an outside collection agency. Investments in Equity Securities. The Company measures its investments in equity securities at fair value with changes in fair value recognized in earnings. The Company elected the measurement alternative to measure cost method investments that do not have readily determinable fair value at cost less impairment, adjusted by observable price changes with any fair value changes recognized in earnings. If the fair value of an equity security declines below its cost basis and the decline is considered other than temporary, the Company will record a write-down, which is included in earnings. The Company uses the average cost method to determine the basis of the securities sold. Prior to 2018, the Company’s investments in marketable equity securities were classified as available-for-sale and, therefore, were recorded at fair value in the Consolidated Financial Statements, with the change in fair value during the period excluded from earnings and recorded net of income taxes as a separate component of other comprehensive income. Additionally, the Company used the cost method of accounting for its minority investments in nonpublic companies where it did not have significant influence over the operations and management of the investee. Investments were recorded at the lower of cost or fair value as estimated by management. Charges recorded to write down cost method investments to their estimated fair value and gross realized gains or losses upon the sale of cost method investments were included in other income (expense), net, in the Company’s Consolidated Statements of Operations. Fair value estimates were based on a review of the investees’ product development activities, historical financial results and projected discounted cash flows. The Company includes cost method investments in deferred charges and other assets in the Company’s Consolidated Balance Sheets. Fair Value Measurements. Fair value measurements are determined based on the assumptions that a market participant would use in pricing an asset or liability based on a three-tiered hierarchy that draws a distinction between market participant assumptions based on (i) observable inputs, such as quoted prices in active markets (Level 1); (ii) inputs other than quoted prices in active markets that are observable either directly or indirectly (Level 2); and (iii) unobservable inputs that require the Company to use present value and other valuation techniques in the determination of fair value (Level 3). Financial assets and liabilities are classified in their entirety based on the lowest level of input that is significant to the fair value measure. The Company’s assessment of the significance of a particular input to the fair value measurements requires judgment and may affect the valuation of the assets and liabilities being measured and their placement within the fair value hierarchy. For assets that are measured using quoted prices in active markets, the total fair value is the published market price per unit multiplied by the number of units held, without consideration of transaction costs. Assets and liabilities that are measured using significant other observable inputs are primarily valued by reference to quoted prices of similar assets or liabilities in active markets, adjusted for any terms specific to that asset or liability. The Company measures certain assets—including goodwill; intangible assets; property, plant and equipment; cost and equity-method investments—at fair value on a nonrecurring basis when they are deemed to be impaired. The fair value of these assets is determined with valuation techniques using the best information available and may include quoted market prices, market comparables and discounted cash flow models. Fair Value of Financial Instruments. The carrying amounts reported in the Company’s Consolidated Financial Statements for cash and cash equivalents, restricted cash, accounts receivable, accounts payable and accrued liabilities, the current portion of deferred revenue and the current portion of debt approximate fair value because of the short-term nature of these financial instruments. The fair value of long-term debt is determined based on a number of observable inputs, including the current market activity of the Company’s publicly traded notes, trends in investor demands and market values of comparable publicly traded debt. The fair value of the interest rate hedge is determined based on a number of observable inputs, including time to maturity and market interest rates. Inventories and Contracts in Progress. Inventories and contracts in progress are stated at the lower of cost or net realizable values and are based on the first-in, first-out (FIFO) method. Inventory costs include direct material, direct and indirect labor, and applicable manufacturing overhead. The Company allocates manufacturing overhead based on normal production capacity and recognizes unabsorbed manufacturing costs in earnings. The provision for excess and obsolete inventory is based on management’s evaluation of inventories on hand relative to historical usage, estimated future usage and technological developments. Property, Plant and Equipment. Property, plant and equipment is recorded at cost and includes interest capitalized in connection with major long-term construction projects. Replacements and major improvements are capitalized; maintenance and repairs are expensed as incurred. Depreciation is calculated using the straight-line method over the estimated useful lives of the property, plant and equipment: 3 to 20 years for machinery and equipment; 20 to 50 years for buildings. The costs of leasehold improvements are amortized over the lesser of their useful lives or the terms of the respective leases. Evaluation of Long-Lived Assets. The recoverability of long-lived assets and finite-lived intangible assets is assessed whenever adverse events or changes in circumstances indicate that recorded values may not be recoverable. A long-lived asset is considered to not be recoverable when the undiscounted estimated future cash flows are less than the asset’s recorded value. An impairment charge is measured based on estimated fair market value, determined primarily using estimated future cash flows on a discounted basis. Losses on long-lived assets to be disposed of are determined in a similar manner, but the fair market value would be reduced for estimated costs to dispose. Goodwill and Other Intangible Assets. Goodwill is the excess of purchase price over the fair value of identified net assets of businesses acquired. The Company’s intangible assets with an indefinite life are principally from trade names and trademarks, and FCC licenses. Amortized intangible assets are primarily student and customer relationships and trade names and trademarks, with amortization periods up to 10 years. Costs associated with renewing or extending intangible assets are insignificant and expensed as incurred. The Company reviews goodwill and indefinite-lived intangible assets at least annually, as of November 30, for possible impairment. Goodwill and indefinite-lived intangible assets are reviewed for possible impairment between annual tests if an event occurs or circumstances change that would more likely than not reduce the fair value of the reporting unit or indefinite-lived intangible asset below its carrying value. The Company tests its goodwill at the reporting unit level, which is an operating segment or one level below an operating segment. The Company initially assesses qualitative factors to determine if it is necessary to perform the goodwill or indefinite-lived intangible asset quantitative impairment review. The Company reviews the goodwill and indefinite-lived assets for impairment using the quantitative process if, based on its assessment of the qualitative factors, it determines that it is more likely than not that the fair value of a reporting unit or indefinite-lived intangible asset is less than its carrying value, or if it decides to bypass the qualitative assessment. The Company reviews the carrying value of goodwill and indefinite-lived intangible assets utilizing a discounted cash flow model, and, where appropriate, a market value approach is also utilized to supplement the discounted cash flow model. The Company makes assumptions regarding estimated future cash flows, discount rates, long-term growth rates and market values to determine the estimated fair value of each reporting unit and indefinite-lived intangible asset. If these estimates or related assumptions change in the future, the Company may be required to record impairment charges. Investments in Affiliates. The Company uses the equity method of accounting for its investments in and earnings or losses of affiliates that it does not control, but over which it exerts significant influence. The Company considers whether the fair values of any of its equity method investments have declined below their carrying values whenever adverse events or changes in circumstances indicate that recorded values may not be recoverable. If the Company considered any such decline to be other than temporary (based on various factors, including historical financial results, product development activities and the overall health of the affiliate’s industry), a write-down would be recorded to estimated fair value. Revenue Recognition. Prior to the adoption of the new revenue guidance on January 1, 2018, the Company recognized revenue when persuasive evidence of an arrangement existed, the fees were fixed or determinable, the product or service had been delivered and collectability was assured. The Company considered the terms of each arrangement to determine the appropriate accounting treatment. Subsequent to the adoption of the new guidance, the Company identifies a contract for revenue recognition when there is approval and commitment from both parties, the rights of the parties and payment terms are identified, the contract has commercial substance and the collectability of consideration is probable. The Company evaluates each contract to determine the number of distinct performance obligations in the contract, which requires the use of judgment. Education Revenue . Education revenue is primarily derived from postsecondary education, professional education and test preparation services provided both domestically and abroad. Generally, tuition and other fees are paid upfront and recorded in deferred revenue in advance of the date when education services are provided to the student. In some instances, installment billing is available to students, which reduces the amount of cash consideration received in advance of performing the service. The contractual terms and conditions associated with installment billing indicate that the student is liable for the total contract price; therefore, mitigating the Company’s exposure to losses associated with nonpayment. The Company determined the installment billing does not represent a significant financing component. Kaplan International . Kaplan International provides higher education, professional education, and test preparation services and materials to students primarily in the United Kingdom, Singapore, and Australia. Some Kaplan International contracts consist of one performance obligation that is a combination of indistinct promises to the student, while other Kaplan International contracts include multiple performance obligations as the promises in the contract are capable of being both distinct and distinct within the context of the contract. One Kaplan International business offers an option whereby students receive future services at a discount that is accounted for as a material right. The transaction price is stated in the contract and known at the time of contract inception; therefore, no variable consideration exists. Revenue is allocated to each performance obligation based on its standalone selling price. Any discounts within the contract are allocated across all performance obligations unless observable evidence exists that the discount relates to a specific performance obligation or obligations in the contract. Kaplan International generally determines standalone selling prices based on prices charged to students. Revenue is recognized ratably over the instruction period or access period for higher education, professional education and test preparation services. Kaplan International generally uses the time elapsed method, an input measure, as it best depicts the simultaneous consumption and delivery of these services. Course materials determined to be a separate performance obligation are recognized at the point in time when control transfers to the student, generally when the products are delivered to the student. Higher Education (KHE) . In the first quarter of 2018, KHE provided postsecondary education services to students through KU’s online programs and fixed-facility colleges. These contracts consisted either of one performance obligation that is a combination of distinct promises to a student, or two performance obligations if the student also enrolled in the Kaplan Tuition Cap, which established a maximum amount of tuition that KHE may charge students for higher education services. The Kaplan Tuition Cap was accounted for as a material right. The transaction price of a higher education contract was stated in the contract and known at the time of contract inception; therefore, no variable consideration existed. A portion of the transaction price was allocated to the material right, if applicable, based on the expected value method. Higher education services revenue was recognized ratably over the instruction period. The Company used the time elapsed method, an input measure, as it best depicts the simultaneous consumption and delivery of higher education services. On March 22, 2018, Kaplan contributed the institutional assets and operations of KU to Purdue University Global (see Note 3). Subsequent to the transaction, KHE provides non-academic operations support services to Purdue University Global pursuant to a Transition and Operations Support Agreement (TOSA). This contract has a 30 -year term and consists of one performance obligation, which represents a series of daily promises to provide support services to Purdue University Global. The transaction price is entirely made up of variable consideration related to the reimbursement of KHE support costs and the KHE fee. The TOSA outlines a payment structure, which dictates how cash will be distributed at the end of Purdue University Global’s fiscal year, which is the 30th of June. The collectability of the KHE support costs and KHE fee is entirely dependent on the availability of cash at the end of the fiscal year. This variable consideration is constrained based on fiscal year forecasts prepared for Purdue University Global. The forecasts are updated throughout the fiscal year until the uncertainty is ultimately resolved, which is at the end of each Purdue University Global fiscal year. As KHE’s performance obligation is made up of a series, the variable consideration is allocated to the distinct service period to which it relates, which is the Purdue University Global fiscal year. Support services revenue is recognized over time based on the expenses incurred to date and the percentage of expected reimbursement. KHE fee revenue is also recognized over time based on the amount of Purdue University Global revenue recognized to date and the percentage of fee expected to be collected for the fiscal year. The Company used these input measures as Purdue University Global simultaneously receives and consumes the benefits of the services provided by KHE. Kaplan Test Preparation (KTP) . KTP offers test preparation services and materials to students related to pre-college, graduate, health and bar review products. Generally KTP contracts include promises for test preparation services and course materials. As each promise is both capable of being distinct and distinct in the context of the contract, each promise is accounted for as a separate performance obligation. As the transaction price is stated in the contract and known at the time of contract inception, no variable consideration exists. Revenue is allocated to each performance obligation based on its standalone selling price. KTP generally determines standalone selling prices based on prices charged to students. Any discounts within the contract are allocated across all performance obligations unless observable evidence exists that the discount relates to a specific performance obligation or obligations in the contract. Test preparation services revenue is recognized ratably over the period of access. At KTP, an estimate of average access period is developed for each course, and this estimate is evaluated on an ongoing basis and adjusted as necessary. KTP generally uses the time elapsed method, an input measure, as it best depicts the simultaneous consumption and availability of access to test preparation services. Revenue associated with distinct course materials is recognized at the point in time when control transfers to the student, generally when the products are delivered to the student. KTP offers a guarantee on certain courses that gives students the ability to repeat a course if they are not satisfied with their exam score. The Company accounts for this guarantee as a separate performance obligation. Professional (U.S.): Professional (U.S.) provides professional training and exam preparation for professional certifications and licensures to students. Professional (U.S.) contracts include promises for professional education services and course materials. Generally, Professional (U.S.) revenue contracts consist of multiple performance obligations as each distinct promise is both capable of being distinct and distinct in the context of the contract. The transaction price is stated in the contract and known at the time of contract inception, therefore no variable consideration exists. Revenue is allocated to each performance obligation based on its standalone selling price. Professional (U.S.) generally determines standalone selling prices based on the prices charged to students. Any discounts within the contract are allocated across all performance obligations unless observable evidence exists that the discount relates to a specific performance obligation or obligations in the contract. Professional education services revenue is recognized ratably over the period of access. Professional (U.S.) generally uses the time elapsed method, an input measure, as it best depicts the simultaneous consumption and availability of access to professional education services. Revenue associated with distinct course materials is recognized at the point in time when control transfers to the student, generally when the products are delivered to the student. Television Broadcasting Revenue . Television broadcasting revenue at Graham Media Group (GMG) is primarily comprised of television and internet advertising revenue, and retransmission revenue. Television Advertising Revenue . GMG accounts for the series of advertisements included in television advertising contracts as one performance obligation and recognizes advertising revenue over time. The Company elected the right to invoice practical expedient, an output method, as GMG has the right to consideration that equals the value provided to the customer for advertisements delivered to date. As a result of the election to use the right to invoice practical expedient, GMG does not determine the transaction price or allocate any variable consideration at contract inception. Rather, GMG recognizes revenue commensurate with the amount to which GMG has the right to invoice the customer. Payment is typically received in arrears within 60 days of revenue recognition. Retransmission Revenue . Retransmission revenue represents compensation paid by cable, satellite and other multichannel video programming distributors (MVPDs) to retransmit GMG’s stations’ broadcasts in their designated market areas. The retransmission rights granted to MVPDs are accounted for as a license of functional intellectual property as the retransmitted broadcast provides significant standalone functionality. As such, each retransmission contract with an MVPD includes one performance obligation for each station’s retransmission license. GMG recognizes revenue using the usage-based royalty method, in which revenue is recognized in the month the broadcast is retransmitted based on the number of MVPD subscribers and the applicable per user rate identified in the retransmission contract. Payment is typically received in arrears within 60 days of revenue recognition. Manufacturing Revenue . Manufacturing revenue consists primarily of product sales generated by four businesses: Hoover, Dekko, Joyce and Forney. The Company has determined that each item ordered by the customer is a distinct performance obligation as it has standalone value and is distinct within the context of the contract. For arrangements with multiple performance obligations, the Company initially allocates the transaction price to each obligation based on its standalone selling price, which is the retail price charged to customers. Any discounts within the contract are allocated across all performance obligations unless observable evidence exists that the discount relates to a specific performance obligation or obligations in the contract. The Company sells some products and services with a right of return. This right of return constitutes variable consideration and is constrained from revenue recognition on a portfolio basis, using the expected value method until the refund period expires. The Company recognizes revenue when or as control transfers to the customer. Some manufacturing revenue is recognized ratably over the manufacturing period, if the product created for the customer does not have an alternative use to the Company and the Company has an enforceable right to payment for performance completed to date. The determination of the method by which the Company measures its progress toward the satisfaction of its performance obligations requires judgment. The Company measures its progress for these products using the units delivered method, an output measure. These arrangements represented 27% of the manufacturing revenue recognized for the year ended December 31, 2018 . Other manufacturing revenue is recognized at the point in time when control transfers to the customer, generally when the products are shipped. Some customers have a bill and hold arrangement with the Company. Revenue for bill and hold arrangements is recognized when control transfers to the customer, even though the customer does not have physical possession of the goods. Control transfers when the bill-and-hold arrangement has been requested from the customer, the product is identified as belonging to the customer and is ready for physical transfer, and the product cannot be directed for use by anyone but the customer. Payment terms and conditions vary by contract, although terms generally include a requirement of payment within 90 days of delivery. The Company evaluated the terms of the warranties and guarantees offered by its manufacturing businesses and determined that these should not be accounted for as a separate performance obligation as a distinct service is not identified. Healthcare Revenue . The Company contracts with patients to provide home health or hospice services. Payment is typically received from third-party payors such as Medicare, Medicaid, and private insurers. The payor is a third party to the contract that stipulates the transaction price of the contract. The Company identifies the patient as the party who benefits from its healthcare services and as such, the patient is its customer. The Company determined that healthcare services contracts generally have one performance obligation to provide healthcare services to patients. The transaction price reflects the amount of revenue the Company expects to receive in exchange for providing these services. As the transaction price for healthcare services is known at the time of contract inception, no variable consideration exists. Healthcare revenue is recognized ratably over the period of care. The Company generally uses the time-elapsed method, an input measure as it best depicts the simultaneous delivery and consumption of healthcare services. Payment is received from third-party payors within 60 days after a claim is filed, or in some cases in two installments, one during the contract and one after the services have been provided. Medicare is the most common third-party payor. Home health revenue contracts may be modified to account for changes in the patient’s plan of care. The Company identifies contract modifications when the modification changes the existing enforceable rights and obligations. As modifications to the plan of care modify the original performance obligation, the Company accounts for the contract modification as an adjustment to revenue (either as an increase in or a reduction of revenue) on a cumulative catch-up basis. Other Revenue . The Company recognizes revenue associated with management services it provides to its affiliates. The Company accounts for the management services provided as one performance obligation and recognizes revenue over time as the services are delivered. The Company uses the right to invoice practical expedient, an output method, as the Company’s right to revenue corresponds directly with the value delivered to the affiliate. As a result of the election to use the right to invoice practical expedient, the Company does not determine the transaction price or allocate any variable consideration at contract inception. Rather, the Company recognizes revenue commensurate with the amount to which it has the right to invoice the affiliate, which is based on contractually identified percentages. Payment is received monthly in arrears. SocialCode Revenue . SocialCode generates media management revenue in exchange for providing social media marketing solutions to its clients. The Company determined that SocialCode contracts generally have one performance obligation made up of a series of promises to manage the client’s media spend on advertising platforms for the duration of the contract period. SocialCode recognizes revenue, net of media acquisition costs, over time as media management services are delivered to the customer. Generally, SocialCode recognizes revenue using the right to invoice practical expedient, an output method, as SocialCode’s right to revenue corresponds directly with the value delivered to its customer. As a result of the election to use the right to invoice practical expedient, SocialCode does not determine the transaction price or allocate any variable consideration at contract inception. Rather, SocialCode recognizes revenue commensurate with the amount to which it has the right to invoice the customer which is a function of the cost of social media placement plus a management fee, less any applicable discounts. Payment is typically received within 100 days of revenue recognition. SocialCode evaluates whether it is the principal (i.e. presents revenue on a gross basis) or agent (i.e. presents revenue on a net basis) in its contracts. SocialCode presents revenue for media management services, net of media acquisition costs, as an agent, as SocialCode does not control the media before placement on social media platforms. Other Revenue . Other revenue primarily includes advertising and circulation revenue from Slate, Panoply and Foreign Policy. The Company accounts for other advertising revenues consistently with the advertising revenue streams addressed above. Circulation revenue consists of fees that provide customers access to online and print publications. The Company recognizes circulation revenue ratably over the subscription period beginning on the date that the publication is made available to the customer. Circulation revenue contracts are generally annual or monthly subscription contracts that are paid in advance of delivery of performance obligations. Revenue Policy Elections . The Company has elected to account for shipping and handling activities that occur after the customer has obtained control of the good as a fulfillment cost rather than as an additional promised service. Therefore, revenue for these performance obligations is recognized when control of the good transfers to the customer, which is when the good is ready for shipment. The Company accrues the related shipping and handling costs over the period when revenue is recognized. The Company has elected to exclude from the measurement of the transaction price all taxes assessed by a governmental authority that are both imposed on and concurrent with a specific revenue-producing transaction and collected by the entity from a customer. Revenue Practical Expedients . The Company does not disclose the value of unsatisfied perform |
Acquisitions and Dispositions o
Acquisitions and Dispositions of Businesses | 12 Months Ended |
Dec. 31, 2018 | |
Acquisitions And Dispositions [Abstract] | |
Acquisitions and Dispositions of Businesses | ACQUISITIONS AND DISPOSITIONS OF BUSINESSES Acquisitions. On January 31, 2019, the Company acquired a 90% interest in two auto dealerships. In addition to a cash payment, a subsidiary of the Company borrowed $30 million to finance the acquisition and entered into an interest rate swap to fix the interest rate on the debt at 4.7% per annum. The Company is required to repay the loan over a 10-year period by making monthly installment payments. The Company also entered into a management services agreement with an entity to operate and manage the acquired dealerships. The acquisition is expected to provide benefits in the future by diversifying the Company’s business operations and will be included in other businesses. During 2018 , the Company acquired eight businesses, five in its education division, one in its healthcare division and two in other businesses for $121.1 million in cash and contingent consideration. The assets and liabilities of the companies acquired were recorded at their estimated fair values at the date of acquisition. In January and February 2018, Kaplan acquired the assets of i-Human Patients, Inc., a provider of cloud-based, interactive patient encounter simulations for medical and nursing professionals and educators, and another small business in test preparation and international, respectively. These acquisitions are expected to provide strategic benefits in the future. In May 2018, Kaplan acquired a 100% interest in Professional Publications, Inc. ( PPI ) , an independent publisher of professional licensing exam review materials and engineering, surveying, architecture, and interior design licensure exam review, by purchasing all of its issued and outstanding shares. This acquisition is expected to provide certain strategic benefits in the future. This acquisition is included in Professional (U.S.). On July 12, 2018, Kaplan acquired 100% of the issued and outstanding shares of the College for Financial Planning ( CFFP ) , a provider of financial education and training to individuals pursuing the Certified Financial Planner certification, a Master of Science in Personal Financial Planning, or a Master of Science in Finance. The acquisition is expected to expand Kaplan’s financial education product offerings and is included in Professional (U.S.). On July 31, 2018, Dekko acquired 100% of the issued and outstanding shares of Furnlite, Inc., a Fallston, NC-based manufacturer of power and data solutions for the hospitality and residential furniture industries. Dekko’s primary reasons for the acquisition are to complement existing product offerings and to provide potential synergies across the businesses. The acquisition is included in other businesses. In August 2018, SocialCode acquired 100% of the membership interests of Marketplace Strategy (MPS), a Cleveland-based digital marketing agency that provides strategy consulting, optimization services, advertising management and creative solutions on online marketplaces including Amazon. SocialCode’s primary reason for the acquisition is to expand its platform offerings. The acquisition is included in other businesses. In September 2018, GHG acquired the assets of a small business and Kaplan acquired the test preparation and study guide assets of Barron’s Educational Series, a New York-based education publishing company. The acquisitions are expected to complement the healthcare and test preparation services currently offered by GHG and Kaplan, respectively. GHG is included in the healthcare division. The Barron’s Educational Series acquisition is included in test preparation. During 2017 , the Company acquired six businesses, two in its education division, two in its television broadcasting division, one in its healthcare division and one in other businesses for $318.9 million in cash and contingent consideration, and the assumption of $59.1 million in certain pension and postretirement obligations. The assets and liabilities of the companies acquired were recorded at their estimated fair values at the date of acquisition. On January 17, 2017, the Company closed on its agreement with Nexstar Broadcasting Group, Inc. and Media General, Inc. to acquire the assets of WCWJ, a CW affiliate television station in Jacksonville, FL, and WSLS, an NBC affiliate television station in Roanoke, VA, for cash and the assumption of certain pension obligations. The acquisition of WCWJ and WSLS will complement the other stations that GMG operates. Both of these acquisitions are included in television broadcasting. In February 2017, Kaplan acquired a 100% interest in Genesis Training Institute, a Dubai-based provider of professional development training in the United Arab Emirates, by purchasing all of its issued and outstanding shares. Additionally, Kaplan acquired a 100% interest in Red Marker Pty Ltd., an Australia-based regulatory technology company by purchasing all of its outstanding shares. These acquisitions are expected to provide certain strategic benefits in the future. Both of these acquisitions are included in Kaplan International. In April 2017, the Company acquired 97.72% of the issued and outstanding shares of Hoover Treated Wood Products, Inc., a Thomson, GA-based supplier of pressure impregnated kiln-dried lumber and plywood products for fire retardant and preservative applications for $206.8 million , net of cash acquired. The fair value of the redeemable noncontrolling interest in Hoover was $3.7 million at the acquisition date, determined using a market approach. The minority shareholders have an option to put some of their shares to the Company starting in 2019 and the remaining shares starting in 2021. The Company has an option to buy the shares of minority shareholders starting in 2027. This acquisition is consistent with the Company’s ongoing strategy of investing in companies with a history of profitability and strong management. Hoover is included in other businesses. At the end of June 2017, GHG acquired a 100% interest in Hometown Home Health and Hospice, a Lapeer, MI-based healthcare services provider by purchasing all of its issued and outstanding shares. This acquisition expands GHG’s service area in Michigan. GHG is included in healthcare. During 2016, the Company acquired five businesses, three businesses included in its education division and two businesses in other businesses for $258.0 million . The assets and liabilities of the companies acquired were recorded at their estimated fair values at the date of acquisition. In January 2016, Kaplan acquired a 100% interest in Mander Portman Woodward, a provider of high-quality, bespoke education to United Kingdom ( U.K. ) and international students in London, Cambridge and Birmingham, by purchasing all of its issued and outstanding shares. In February 2016, Kaplan acquired a 100% interest in Osborne Books, an educational publisher of learning resources for accounting qualifications in the U.K., by purchasing all of its issued and outstanding shares. The primary reason for these acquisitions was based on several strategic benefits expected to be realized in the future. Both of these acquisitions are included in Kaplan International. In September 2016, Dekko acquired a 100% interest in Electri-Cable Assemblies, a Shelton, CT-based manufacturer of power, data and electrical solutions for the office furniture industry, by purchasing all of its issued and outstanding shares. Dekko’s primary reasons for the acquisition were to complement existing product offerings and provide opportunities for synergies across the businesses. This acquisition is included in other businesses. Acquisition-related costs for acquisitions that closed during 2018 , 2017 and 2016 were $1.5 million , $4.1 million and $1.5 million , respectively, and expensed as incurred. The aggregate purchase price of these acquisitions was allocated as follows, based on acquisition date fair values to the following assets and liabilities (excluding measurement period adjustments recorded in subsequent years): Purchase Price Allocation Year Ended December 31 (in thousands) 2018 2017 2016 Accounts receivable $ 2,344 $ 12,502 $ 8,538 Inventory 1,268 25,253 878 Property, plant and equipment 1,518 29,921 3,940 Goodwill 41,840 143,149 184,118 Indefinite-lived intangible assets — 33,800 53,110 Amortized intangible assets 78,427 170,658 28,267 Other assets 5,198 1,880 1,420 Pension and other postretirement benefits liabilities — (59,116 ) — Other liabilities (7,678 ) (12,177 ) (21,892 ) Deferred income taxes (4,900 ) (37,289 ) (11,009 ) Redeemable noncontrolling interest — (3,666 ) — Aggregate purchase price, net of cash acquired $ 118,017 $ 304,915 $ 247,370 The fair values recorded were based upon valuations. Goodwill is calculated as the excess of the consideration transferred over the net assets recognized and represents the estimated future economic benefits arising from other assets acquired that could not be individually identified and separately recognized. The goodwill recorded due to these acquisitions is attributable to the assembled workforces of the acquired companies and expected synergies. The Company expects to deduct $32.3 million , $11.0 million and $22.2 million of goodwill for income tax purposes for the acquisitions completed in 2018 , 2017 and 2016 , respectively. The acquired companies were consolidated into the Company’s financial statements starting on their respective acquisition dates. The Company’s Consolidated Statements of Operations include aggregate revenue and operating loss of $28.8 million and $2.9 million for the year ended December 31, 2018, respectively. The following unaudited pro forma financial information presents the Company’s results as if the current year acquisitions had occurred at the beginning of 2017 . The unaudited pro forma information also includes the 2017 acquisitions as if they occurred at the beginning of 2016 and the 2016 acquisitions as if they had occurred at the beginning of 2015: Year Ended December 31 (in thousands) 2018 2017 2016 Operating revenues $ 2,735,879 $ 2,725,046 $ 2,570,416 Net income 273,688 311,397 175,021 These pro forma results were based on estimates and assumptions, which the Company believes are reasonable, and include the historical results of operations of the acquired companies and adjustments for depreciation and amortization of identified assets and the effect of pre-acquisition transaction related expenses incurred by the Company and the acquired entities. The pro forma information does not include efficiencies, cost reductions and synergies expected to result from the acquisitions. They are not the results that would have been realized had these entities been part of the Company during the periods presented and are not necessarily indicative of the Company’s consolidated results of operations in future periods. Kaplan University Transaction. On April 27, 2017, certain subsidiaries of Kaplan entered into a Contribution and Transfer Agreement to contribute the institutional assets and operations of Kaplan University to an Indiana non-profit, public-benefit corporation that is a subsidiary affiliated with Purdue University. The closing of the transactions contemplated by the Transfer Agreement occurred on March 22, 2018. At the same time, the parties entered into the TOSA pursuant to which Kaplan provides key non-academic operations support to the new university. The new university operates largely online as a new Indiana public university affiliated with Purdue under the name Purdue University Global. As part of the transfer to Purdue University Global, KU transferred students, academic personnel, faculty and operations, property leases for KU’s campuses and learning centers, Kaplan-owned academic curricula and content related to KU courses. The operations support activities that Kaplan provides to Purdue University Global includes technology support, help-desk functions, human resources support for transferred faculty and employees, admissions support, financial aid administration, marketing and advertising, back-office business functions, certain test preparation and domestic and international student recruiting services. The transfer of KU does not include any of the assets of the KU School of Professional and Continuing Education, which provides professional training and exam preparation for professional certifications and licensures, nor does it include the transfer of other Kaplan businesses such as Kaplan Test Preparation and Kaplan International. Those entities, programs and business lines remain part of Kaplan. Kaplan received nominal cash consideration upon transfer of the institutional assets. Pursuant to the TOSA, Kaplan is not entitled to receive any reimbursement of costs incurred in providing support functions, or any fee, unless and until Purdue University Global has first covered all of its operating costs (subject to a cap). If Purdue University Global achieves cost efficiencies in its operations, then Purdue University Global may be entitled to an additional payment equal to 20% of such cost efficiencies (Purdue Efficiency Payment). In addition, during each of Purdue University Global’s first five years, prior to any payment to Kaplan, Purdue University Global is entitled to a priority payment of $10 million per year beyond costs. To the extent Purdue University Global’s revenue is insufficient to pay the $10 million per year priority payment, Kaplan is required to advance an amount to Purdue University Global to cover such insufficiency. At closing, Kaplan paid to Purdue University Global an advance in the amount of $20 million, representing, and in lieu of, priority payments for Purdue University Global’s fiscal years ending June 30, 2019 and June 30, 2020. To the extent that there are sufficient revenues to pay the Purdue Efficiency Payment, Purdue University Global is reimbursed for its operating costs (subject to a cap) and the priority payment to Purdue University Global is paid. To the extent there is remaining revenue, Kaplan will then receive reimbursement for its operating costs (subject to a cap) of providing the support activities. If Kaplan achieves cost efficiencies in its operations, then Kaplan may be entitled to an additional payment equal to 20% of such cost efficiencies (Kaplan Efficiency Payment). If there are sufficient revenues, Kaplan may also receive a fee equal to 12.5% of Purdue University Global’s revenue. The fee will increase to 13% beginning with Purdue University Global’s fiscal year ending June 30, 2023 and continuing through Purdue University Global’s fiscal year ending June 30, 2027, and then the fee will return to 12.5% thereafter. Subject to certain limitations, a portion of the fee that is earned by Kaplan in one year may be carried over and instead paid to Kaplan in subsequent years. After the first five years of the TOSA, Kaplan and Purdue University Global will be entitled to payments in a manner consistent with the structure described above, except that (i) Purdue University Global will no longer be entitled to a priority payment and (ii) to the extent that there are sufficient revenues after payment of the Kaplan Efficiency Payment (if any), Purdue University Global will be entitled to an annual payment equal to 10% of the remaining revenue after the Kaplan Efficiency Payment (if any) is paid and subject to certain other adjustments. The TOSA has a 30-year initial term, which will automatically renew for five-year periods unless terminated. After the sixth year, Purdue University Global has the right to terminate the agreement upon payment of a termination fee equal to 1.25 times Purdue University Global’s revenue for the preceding 12-month period, which payment would be made pursuant to a 10-year note, and at the election of Purdue University Global, it may receive for no additional consideration certain assets used by Kaplan to provide the support activities pursuant to the TOSA. At the end of the 30-year term, if Purdue University Global does not renew the TOSA, Purdue University Global will be obligated to make a final payment of 75% of its total revenue earned during the preceding 12-month period, which payment will be made pursuant to a 10-year note, and at the election of Purdue University Global, it may receive for no additional consideration certain assets used by Kaplan to provide the support activities pursuant to the TOSA. Either party may terminate the TOSA at any time if Purdue University Global generates (i) $25 million in cash operating losses for three consecutive years or (ii) aggregate cash operating losses greater than $75 million at any point during the initial term. Operating loss is defined as the amount of revenue Purdue University Global generates minus the sum of (1) Purdue University Global’s and Kaplan’s respective costs in performing academic and support functions and (2) the $10 million priority payment to Purdue University Global in each of the first five years. Upon termination for any reason, Purdue University Global will retain the assets that Kaplan contributed pursuant to the Transfer Agreement. Each party also has certain termination rights in connection with a material default or material breach of the TOSA by the other party. Pursuant to the U.S. Department of Education (ED) requirements, Purdue assumes responsibility for any liability arising from the operation of the institution. This assumption will not limit Kaplan’s obligation to indemnify Purdue for pre-closing liabilities under the Transfer Agreement. As a result of the transfer of KU, Kaplan will no longer own or operate KU or any other institution participating in student financial aid programs that have been created under Title IV of the U.S. Federal Higher Education Act of 1965, as amended. Consequently, Kaplan is no longer responsible for operating KU. However, pursuant to the TOSA, Kaplan will be performing functions that fall within the ED’s definition of a third-party servicer and will, therefore, assume certain regulatory responsibilities that require approval by the ED. The third-party servicer arrangement between Kaplan and Purdue University Global is also subject to information security requirements established by the Federal Trade Commission as well as all aspects of the Family Educational Rights and Privacy Act. As a third-party servicer, Kaplan may be required to undergo an annual compliance audit of its administration of the Title IV functions or services that it performs. As a result of the KU Transaction, the Company recorded a pre-tax gain of $4.3 million in the first quarter of 2018. For financial reporting purposes, Kaplan may receive payment of additional consideration for the sale of the institutional assets as part of the fee to the extent there are sufficient revenues available after paying all amounts required by the TOSA. The Company recorded a $1.9 million contingent consideration gain related to the disposition in the year ended December 31, 2018, and did not adjust the contingent consideration in the fourth quarter of 2018. The revenue and operating income related to the KU business disposed of is as follows: Year Ended December 31 (in thousands) 2018 2017 2016 Revenue $ 91,526 $ 430,645 $ 500,914 Operating income 213 17,869 39,498 Sale of Businesses. In February 2018, Kaplan completed the sale of a small business which was included in Test Preparation. In September 2018, Kaplan Australia completed the sale of a small business which was included in Kaplan International. In February 2017, GHG completed the sale of Celtic Healthcare of Maryland. In the fourth quarter of 2017, Kaplan Australia completed the sale of a small business, which was included in Kaplan International. In January 2016, Kaplan completed the sale of Colloquy, which was included in Kaplan Corporate and Other. As a result of these sales, the Company reported gains (losses) in other non-operating income (see Note 15) . Other Transactions. In June 2018, the Company incurred $6.2 million of interest expense related to the mandatorily redeemable noncontrolling interest redemption settlement at GHG. The mandatorily redeemable noncontrolling interest was redeemed and paid in July 2018. In June 2016, Residential Healthcare (Residential) and a Michigan hospital formed a joint venture to provide home health services to patients in western Michigan. In connection with this transaction, Residential contributed its western Michigan home health operations to the joint venture and then sold 60% of the newly formed venture to its Michigan hospital partner. Although Residential manages the operations of the joint venture, Residential 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. In June 2016, the Company purchased the outstanding 20% redeemable noncontrolling interest in Residential. At that time, the Company recorded an increase to redeemable noncontrolling interest of $3.0 million , with a corresponding decrease to capital in excess of par value, to reflect the redemption value of the redeemable noncontrolling interest at $24.0 million . Following this transaction, Celtic Healthcare (Celtic) and Residential combined their business operations to form GHG. The redeemable noncontrolling interest shareholders in Celtic exchanged their 20% interest in Celtic for a 10% mandatorily redeemable noncontrolling interest in the combined entity, and the Company recorded a $4.1 million net increase to the mandatorily redeemable noncontrolling interest to reflect the estimated fair value of the mandatorily redeemable noncontrolling interest. |
Investments
Investments | 12 Months Ended |
Dec. 31, 2018 | |
Investments [Abstract] | |
Investments | INVESTMENTS Money Market Investments. As of December 31, 2018 and 2017 , the Company had money market investments of $75.5 million and $217.6 million , respectively, that are classified as cash, cash equivalents and restricted cash in the Company’s Consolidated Balance Sheets. Investments in Marketable Equity Securities. Investments in marketable equity securities consist of the following: As of December 31 (in thousands) 2018 2017 Total cost $ 282,563 $ 269,343 Gross unrealized gains 216,111 266,972 Gross unrealized losses (2,284 ) — Total Fair Value $ 496,390 $ 536,315 At December 31, 2018 and 2017 , the Company owned 28,000 shares in Markel Corporation (Markel) valued at $29.1 million and $31.9 million , respectively. The Co-Chief Executive Officer of Markel, Mr. Thomas S. Gayner, is a member of the Company’s Board of Directors. The Company purchased $42.7 million of marketable equity securities during 2018 . There were no purchases during 2017 . The Company settled on $48.3 million of marketable equity securities during 2016, of which $47.9 million was purchased during the year. During 2018 , the gross cumulative realized gains from the sales of marketable equity securities were $37.3 million . The total proceeds from such sales were $66.7 million . There were no sales of marketable equity securities during 2017 . During 2016, proceeds from sales of marketable equity securities were $29.7 million , resulting in gross realized losses of $8.1 million and gross realized gains of $6.2 million . The net loss on marketable equity securities comprised the following: Year ended (in thousands) December 31, 2018 Loss on marketable equity securities, net $ (15,843 ) Plus: Net losses in earnings from marketable equity securities sold 4,271 Net unrealized losses in earnings from marketable equity securities still held at the end of the year $ (11,572 ) Investments in Affiliates. As of December 31, 2018 , the Company held an approximate 11% interest in Intersection Holdings, LLC, and in several other affiliates; GHG 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 GHG and a Michigan hospital, and a 40% interest in the joint venture formed between GHG and Allegheny Health Network (AHN). For the year ended December 31, 2018 and 2017 , the Company recorded $12.1 million and $18.3 million , respectively, in revenue for services provided to the affiliates of GHG. Additionally, Kaplan International Holdings Limited (KIHL) held a 45% interest in a joint venture formed with York University. KIHL agreed to loan the joint venture £25 million , of which £16 million was advanced as of December 31, 2017. In the second quarter of 2018, KIHL advanced a final amount of £6 million in additional funding to the joint venture under this agreement, bringing the total amount advanced to £22 million . The loan is repayable over 25 years at an interest rate of 7% and the loan is guaranteed by the University of York. As a result of operating losses, in the fourth quarter of 2017 , the Company recorded a $2.8 million write-down on its investment in an affiliate. As a result of the challenging industry operating environment and operating losses, in the fourth quarter of 2016, the Company recorded an $8.4 million write-down on its investment in HomeHero, a company that managed an online senior home care marketplace. In the third quarter of 2018, the Company recorded a $2.1 million gain in equity in earnings of affiliates following the receipt of a final distribution from HomeHero upon its liquidation. Also in the third quarter of 2018, the Company recorded a $5.8 million gain in equity in earnings of affiliates due to a funding event that increased the estimated liquidation value of the Company’s investment in one of its affiliates. In February 2019, the Company sold its interest in Gimlet Media; the Company will report a gain in the first quarter of 2019. Cost Method Investments. The Company held investments without readily determinable fair values in a number of equity securities that are accounted for as cost method investments, which are recorded at cost, less impairment, and adjusted for observable price changes for identical or similar investments of the same issuer. The carrying value of these investments was $30.6 million and $19.9 million as of December 31, 2018 and 2017 , respectively. During 2018, the Company recorded gains of $11.7 million to those equity securities based on observable transactions and impairment losses of $2.7 million . |
Accounts Receivable, Accounts P
Accounts Receivable, Accounts Payable and Accrued Liabilities | 12 Months Ended |
Dec. 31, 2018 | |
Accounts Receivable Accounts Payable And Accrued Liabilities [Abstract] | |
Accounts Receivable Accounts Payable And Accrued Liabilities | ACCOUNTS RECEIVABLE, ACCOUNTS PAYABLE AND ACCRUED LIABILITIES Accounts receivable consist of the following: As of December 31 (in thousands) 2018 2017 Receivables from contracts with customers, less doubtful accounts of $14,775 and $22,975 $ 538,021 $ 600,215 Other receivables 44,259 20,104 $ 582,280 $ 620,319 The changes in allowance for doubtful accounts was as follows: (in thousands) Balance at Beginning of Period Additions – Charged to Costs and Expenses Deductions Balance at End of Period 2018 $ 22,975 $ 10,209 $ (18,409 ) $ 14,775 2017 $ 26,723 $ 33,830 $ (37,578 ) $ 22,975 2016 $ 27,854 $ 29,718 $ (30,849 ) $ 26,723 Accounts payable and accrued liabilities consist of the following: As of December 31 (in thousands) 2018 2017 Accounts payable and accrued liabilities $ 337,123 $ 385,927 Accrued compensation and related benefits 149,455 140,396 $ 486,578 $ 526,323 Cash overdrafts of $0.3 million and $6.0 million are included in accounts payable and accrued liabilities at December 31, 2018 and 2017 , respectively. |
Inventories and Contracts in Pr
Inventories and Contracts in Progress | 12 Months Ended |
Dec. 31, 2018 | |
Inventories and Contracts in Progress [Abstract] | |
Inventories and Contracts in Progress | INVENTORIES AND CONTRACTS IN PROGRESS Inventories and contracts in progress consist of the following: As of December 31 (in thousands) 2018 2017 Raw materials $ 37,248 $ 30,429 Work-in-process 11,633 10,258 Finished goods 17,861 18,851 Contracts in progress 2,735 1,074 $ 69,477 $ 60,612 |
Property, Plant and Equipment
Property, Plant and Equipment | 12 Months Ended |
Dec. 31, 2018 | |
Property, Plant and Equipment [Abstract] | |
Property, Plant and Equipment | PROPERTY, PLANT AND EQUIPMENT Property, plant and equipment consist of the following: As of December 31 (in thousands) 2018 2017 Land $ 15,965 $ 16,190 Buildings 108,683 107,932 Machinery, equipment and fixtures 382,064 387,914 Leasehold improvements 206,170 215,445 Construction in progress 68,064 16,649 780,946 744,130 Less accumulated depreciation (487,861 ) (484,772 ) $ 293,085 $ 259,358 Depreciation expense was $56.7 million , $62.5 million and $64.6 million in 2018 , 2017 and 2016 , respectively. The Company capitalized $0.8 million , $0.3 million , and $0.4 million of interest related to the construction of buildings in 2018 , 2017 and 2016 , respectively. In the third quarter of 2018, GHG recorded an impairment charge of $0.2 million . In the second quarter of 2017, as a result of a challenging operating environment, Forney recorded a $0.6 million impairment charge. In the third quarter of 2017, GHG recorded an impairment charge of $0.4 million . The Company estimated the fair value of the property, plant and equipment using a market approach. Forney is included in other businesses. |
Goodwill and Other Intangible A
Goodwill and Other Intangible Assets | 12 Months Ended |
Dec. 31, 2018 | |
Goodwill and Intangible Assets Disclosure [Abstract] | |
Goodwill and Other Intangible Assets | GOODWILL AND OTHER INTANGIBLE ASSETS In the third quarter of 2018, Healthcare recorded an intangible asset impairment charge of $7.9 million following the decision to discontinue the use of the Celtic trade name. The fair value of the intangible asset was estimated using an income approach. In the second quarter of 2017, as a result of a challenging operating environment, the Forney reporting unit recorded a goodwill and intangible asset impairment charge of $8.6 million . The Company performed an interim review of the goodwill and other long-lived assets of the reporting unit by utilizing a discounted cash flow model to estimate the fair value. The carrying value of the reporting unit exceeded the estimated fair value, resulting in a goodwill impairment charge for the amount by which the carrying value exceeded the reporting unit’s estimated fair value. Forney is included in other businesses. In the fourth quarter of 2016, as a result of the challenging industry operating environment and operating losses, one of the businesses in the other businesses segment recorded a goodwill impairment charge of $1.6 million . Amortization of intangible assets for the years ended December 31, 2018 , 2017 and 2016 , was $47.4 million , $41.2 million and $26.7 million , respectively. Amortization of intangible assets is estimated to be approximately $52 million in 2019 , $49 million in 2020 , $43 million in 2021 , $37 million in 2022 , $29 million in 2023 and $53 million thereafter. The changes in the carrying amount of goodwill, by segment, were as follows: (in thousands) Education Television Broadcasting Healthcare Other Businesses Total As of December 31, 2016 Goodwill $ 1,111,003 $ 168,345 $ 59,640 $ 142,501 $ 1,481,489 Accumulated impairment losses (350,850 ) — — (7,685 ) (358,535 ) 760,153 168,345 59,640 134,816 1,122,954 Acquisitions 19,174 22,470 10,181 91,324 143,149 Impairment — — — (7,616 ) (7,616 ) Dispositions — — (412 ) — (412 ) Foreign currency exchange rate changes 41,635 — — — 41,635 As of December 31, 2017 Goodwill 1,171,812 190,815 69,409 233,825 1,665,861 Accumulated impairment losses (350,850 ) — — (15,301 ) (366,151 ) 820,962 190,815 69,409 218,524 1,299,710 Acquisitions 20,424 — 217 21,199 41,840 Dispositions (11,191 ) — — — (11,191 ) Foreign currency exchange rate changes (32,647 ) — — — (32,647 ) As of December 31, 2018 Goodwill 1,128,699 190,815 69,626 255,024 1,644,164 Accumulated impairment losses (331,151 ) — — (15,301 ) (346,452 ) $ 797,548 $ 190,815 $ 69,626 $ 239,723 $ 1,297,712 The changes in carrying amount of goodwill at the Company’s education division were as follows: (in thousands) Kaplan International Higher Education Test Preparation Professional (U.S.) Total As of December 31, 2016 Goodwill $ 555,185 $ 205,494 $ 166,098 $ 184,226 $ 1,111,003 Accumulated impairment losses — (131,023 ) (102,259 ) (117,568 ) (350,850 ) 555,185 74,471 63,839 66,658 760,153 Acquisitions 19,174 — — — 19,174 Foreign currency exchange rate changes 41,502 — — 133 41,635 As of December 31, 2017 Goodwill 615,861 205,494 166,098 184,359 1,171,812 Accumulated impairment losses — (131,023 ) (102,259 ) (117,568 ) (350,850 ) 615,861 74,471 63,839 66,791 820,962 Acquisitions 62 — 822 19,540 20,424 Dispositions — (11,191 ) — — (11,191 ) Foreign currency exchange rate changes (32,499 ) (40 ) — (108 ) (32,647 ) As of December 31, 2018 Goodwill 583,424 174,564 166,920 203,791 1,128,699 Accumulated impairment losses — (111,324 ) (102,259 ) (117,568 ) (331,151 ) $ 583,424 $ 63,240 $ 64,661 $ 86,223 $ 797,548 Other intangible assets consist of the following: As of December 31, 2018 As of December 31, 2017 (in thousands) Useful Life Range Gross Carrying Amount Accumulated Amortization Net Carrying Amount Gross Accumulated Net Amortized Intangible Assets Student and customer relationships 2–10 years (1) $ 282,761 $ 114,429 $ 168,332 $ 260,464 $ 83,690 $ 176,774 Trade names and trademarks 2–10 years 87,285 39,825 47,460 50,286 25,596 24,690 Network affiliation agreements 10 years 17,400 3,408 13,992 17,400 1,668 15,732 Databases and technology 3–6 years 27,041 8,471 18,570 19,563 5,008 14,555 Noncompete agreements 2–5 years 1,088 838 250 930 467 463 Other 1–8 years 24,530 9,873 14,657 13,430 7,668 5,762 $ 440,105 $ 176,844 $ 263,261 $ 362,073 $ 124,097 $ 237,976 Indefinite-Lived Intangible Assets Trade names and trademarks $ 80,102 $ 82,745 FCC licenses 18,800 18,800 Licensure and accreditation 150 650 $ 99,052 $ 102,195 ____________ (1) As of December 31, 2017, the student and customer relationships’ minimum useful life was 1 year. |
Income Taxes
Income Taxes | 12 Months Ended |
Dec. 31, 2018 | |
Income Tax Disclosure [Abstract] | |
Income Taxes | INCOME TAXES Income before income taxes consists of the following: Year Ended December 31 (in thousands) 2018 2017 2016 U.S. $ 257,312 $ 134,276 $ 227,457 Non-U.S. 66,196 48,513 23,201 $ 323,508 $ 182,789 $ 250,658 The provision for (benefit from) income taxes consists of the following: (in thousands) Current Deferred Total Year Ended December 31, 2018 U.S. Federal $ 46,059 $ 16,718 $ 62,777 State and Local 2,240 (23,809 ) (21,569 ) Non-U.S. 10,924 (32 ) 10,892 $ 59,223 $ (7,123 ) $ 52,100 Year Ended December 31, 2017 U.S. Federal $ 10,743 $ (153,217 ) $ (142,474 ) State and Local 5,930 3,306 9,236 Non-U.S. 10,079 3,459 13,538 $ 26,752 $ (146,452 ) $ (119,700 ) Year Ended December 31, 2016 U.S. Federal $ 56,342 $ 33,959 $ 90,301 State and Local 6,325 (5,164 ) 1,161 Non-U.S. 8,463 (18,725 ) (10,262 ) $ 71,130 $ 10,070 $ 81,200 The provision for income taxes differs from the amount of income tax determined by applying the U.S. Federal statutory rate of 21% in 2018, and 35% in 2017 and 2016, to the income before taxes, as a result of the following: Year Ended December 31 (in thousands) 2018 2017 2016 U.S. Federal taxes at statutory rate (see above) $ 67,937 $ 63,976 $ 87,731 State and local taxes, net of U.S. Federal tax (1,279 ) 6,949 (2,965 ) Valuation allowances against state tax benefits, net of U.S. Federal tax (15,767 ) (946 ) 3,196 Stock-based compensation (1,731 ) (6,023 ) — Valuation allowances against other non-U.S. income tax benefits 1,322 (1,935 ) (12,688 ) Goodwill impairments and dispositions — — (5,631 ) U.S. Federal Manufacturing Deduction tax benefits — (1,329 ) (6,012 ) Write-off of deferred taxes related to intercompany loans — — 10,965 Deferred tax impact of U.S. Federal tax rate reduction to 21%, net of state tax impact — (153,336 ) — Deferred tax benefit on unremitted non-U.S. subsidiary earnings related to the Tax Act — (28,324 ) — Other, net 1,618 1,268 6,604 Provision for (Benefit from) Income Taxes $ 52,100 $ (119,700 ) $ 81,200 The Tax Cuts and Jobs Act (the Tax Act) was enacted on December 22, 2017, making significant changes to the Internal Revenue Code. In accordance with SEC Staff Accounting Bulletin No. 118 (SAB 118) the Company finalized its analysis of the Tax Act and no material adjustments were made in the Consolidated Financial Statements for the year ended December 31, 2018 with respect to provisional amounts previously recorded. Changes as a result of the Tax Act include, but are not limited to, a reduction in the federal corporate income tax rate from 35% to 21% effective January 1, 2018; the imposition of a one-time transition tax on historic earnings of certain non-U.S. subsidiaries that were previously tax deferred; and the imposition of new U.S. taxes on certain non-U.S. earnings. The U.S. Federal corporate income tax rate change resulted in a one-time, non-cash benefit and corresponding reduction of the Company’s U.S. Federal deferred tax liabilities, net of the state tax impact, of $153.3 million , which was recorded in the fourth quarter of 2017, the period in which the legislation was enacted. The Company did not incur, and did not record, any liability with respect to the one-time U.S. transition tax imposed by the Tax Act on unremitted non-U.S. subsidiary earnings. The Company estimates that unremitted non-U.S. subsidiary earnings, when distributed, will not be subject to tax except to the extent non-U.S. withholding taxes are imposed. Accordingly, the Company recorded net deferred tax benefits and a corresponding reduction in deferred tax liabilities of $28.3 million in the fourth quarter of 2017, with respect to unremitted non-U.S. subsidiary earnings. Approximately $1.7 million of deferred tax liabilities remained recorded on the books at December 31, 2018 , with respect to future non-U.S. withholding taxes the Company estimated may be imposed on future cash distributions. During 2016, certain intercompany loans were capitalized and other intercompany loans were designated as long-term investments, resulting in the write-off of $11.0 million i n U.S. deferred tax assets. Also, the Company benefited from a favorable $5.6 million out of period deferred tax adjustment related to the KHE goodwill impairment recorded in the third quarter of 2015. Deferred income taxes consist of the following: As of December 31 (in thousands) 2018 2017 Employee benefit obligations $ 68,392 $ 84,148 Accounts receivable 4,449 5,481 State income tax loss carryforwards 34,107 35,434 State capital loss carryforwards 1,093 — U.S. Federal income tax loss carryforwards 2,100 2,857 U.S. Federal foreign income tax credit carryforwards 987 2,522 Non-U.S. income tax loss carryforwards 15,868 18,797 Non-U.S. capital loss carryforwards 3,609 2,336 Other 14,657 26,546 Deferred Tax Assets 145,262 178,121 Valuation allowances (33,120 ) (48,742 ) Deferred Tax Assets, Net $ 112,142 $ 129,379 Prepaid pension cost 269,412 283,604 Unrealized gain on available-for-sale securities 51,242 70,827 Goodwill and other intangible assets 88,798 109,428 Property, plant and equipment 9,997 11,248 Non-U.S. withholding tax 1,726 1,606 Deferred Tax Liabilities $ 421,175 $ 476,713 Deferred Income Tax Liabilities, Net $ 309,033 $ 347,334 The Company has $698.9 million of state income tax net operating loss carryforwards available to offset future state taxable income. State income tax loss carryforwards, if unutilized, will start to expire approximately as follows: (in millions) 2019 $ 1.8 2020 15.5 2021 17.1 2022 0.3 2023 5.0 2024 and after 659.2 Total $ 698.9 The Company has recorded at December 31, 2018 , $34.1 million in deferred state income tax assets, net of U.S. Federal income tax, with respect to these state income tax loss carryforwards. The Company has established $17.9 million in valuation allowances against these deferred state income tax assets, since the Company has determined that it is more likely than not that some of these state tax losses may not be fully utilized in the future to reduce state taxable income. During 2018, the Company’s education division released valuation allowances recorded against state deferred tax assets, net of U.S. Federal tax, of approximately $20.0 million because the education division recently generated positive operating results that support the realization of these deferred tax assets. The Company has $9.9 million of U.S. Federal income tax loss carryforwards obtained as a result of prior stock acquisitions. U.S. Federal income tax loss carryforwards are expected to be fully utilized as follows: (in millions) 2019 $ 3.3 2020 3.3 2021 1.1 2022 0.9 2023 0.4 2024 and after 0.9 Total $ 9.9 The Company has established at December 31, 2018 , $2.1 million in U.S. Federal deferred tax assets with respect to these U.S. Federal income tax loss carryforwards. For U.S. Federal income tax purposes, the Company has $1.0 million of foreign tax credits available to be credited against future U.S. Federal income tax liabilities. If unutilized, these foreign tax credits will start to expire in 2023. The Company has established at December 31, 2018 , $1.0 million of U.S. Federal deferred tax assets with respect to these U.S. Federal foreign tax credit carryforwards, and the Company has recorded a full valuation allowance against these deferred tax assets since the Company determined that it is more likely than not these foreign tax credit carryforwards may not be utilized in the future to reduce U.S. Federal income taxes. The Company has $58.1 million of non-U.S. income tax loss carryforwards, as a result of operating losses and carryforwards obtained through prior stock acquisitions that are available to offset future non-U.S. taxable income and has recorded, with respect to these losses, $15.9 million in non-U.S. deferred income tax assets. The Company has established $6.1 million in valuation allowances against the deferred tax assets for the portion of non-U.S. tax losses that may not be utilized to reduce future non-U.S. taxable income. The $58.1 million of non-U.S. income tax loss carryforwards consist of $46.8 million in losses that may be carried forward indefinitely; $8.4 million of losses that, if unutilized, will expire in varying amounts through 2023 ; and $2.9 million of losses that, if unutilized, will start to expire after 2023 . The Company has $12.0 million of non-U.S. capital loss carryforwards that may be carried forward indefinitely and are available to offset future non-U.S. capital gains. The Company recorded a $3.6 million non-U.S. deferred income tax asset for these non-U.S. capital loss carryforwards and has established a full valuation allowance against this non-U.S. deferred tax asset since the Company has determined that it is more likely than not that the capital loss carryforwards may not be utilized to reduce taxable income in the future. Deferred tax valuation allowances and changes in deferred tax valuation allowances were as follows: (in thousands) Balance at Beginning of Period Tax Expense and Revaluation Deductions Balance at End of Period Year ended December 31, 2018 $ 48,742 $ 4,413 $ (20,035 ) $ 33,120 December 31, 2017 $ 41,319 $ 7,423 $ — $ 48,742 December 31, 2016 $ 69,545 $ 4,709 $ (32,935 ) $ 41,319 The Company has established $22.2 million in valuation allowances against deferred state tax assets recognized, net of U.S. Federal tax. As stated above, approximately $17.9 million of the valuation allowances, net of U.S. Federal income tax, relate to state income tax loss carryforwards. The Company has established valuation allowances against deferred state income tax assets, without considering potentially offsetting deferred tax liabilities established with respect to prepaid pension cost and goodwill. Prepaid pension cost and goodwill have not been considered a source of future taxable income for realizing those state deferred tax assets recognized since these temporary differences are not likely to reverse in the foreseeable future, and at this time no material deferred tax assets recorded are impacted by the new indefinite net operating loss carryforward rules. The valuation allowances established against deferred state income tax assets may increase or decrease within the next 12 months, based on operating results or the market value of investment holdings. The Company will be monitoring future results on a quarterly basis to determine whether the valuation allowances provided against deferred state tax assets should be increased or decreased, as future circumstances warrant. The Company’s education division released valuation allowances against state deferred tax assets of $20.0 million during 2018, as the education division recently generated positive operating results that support the realization of these deferred tax assets. The Company has established $9.9 million in valuation allowances against non-U.S. deferred tax assets, and, as stated above, $6.1 million of the non-U.S. valuation allowances relate to non-U.S. income tax loss carryforwards and $3.6 million relate to non-U.S. capital loss carryforwards. Valuation allowances established against non-U.S. deferred tax assets are recorded at the education division and other businesses. These non-U.S. valuation allowances may increase or decrease within the next 12 months, based on operating results. As a result, the Company is unable to estimate the potential tax impact, given the uncertain operating environment. The Company will be monitoring future education division and other businesses’ operating results and projected future operating results on a quarterly basis to determine whether the valuation allowances provided against non-U.S. deferred tax assets should be increased or decreased, as future circumstances warrant. In the third quarter of 2016, the Company released $19.3 million of valuation allowance previously recorded on its operations in Australia. The Tax Act generally provides a 100% dividends received deduction for distributions from non-U.S. subsidiaries after December 31, 2017. The Tax Act establishes a new regime, the Global Intangible Low Taxed Income (GILTI) tax, that may currently subject to U.S. tax the operations of non-U.S. subsidiaries. The GILTI tax is imposed annually based on all current year non-U.S. operations starting January 1, 2018. The Company has elected to record the GILTI tax regime as a periodic tax expense for book purposes. Annually, the Company may elect to credit or deduct foreign taxes for U.S. Federal tax purposes. For the year ended December 31, 2018 , the Company plans to elect to credit foreign taxes. The GILTI tax recorded, net of foreign taxes credited, for the year ended December 31, 2018 is not material. The book value of investments in the stocks of non-U.S. subsidiaries exceeded the tax basis by approximately $226.1 million and $113.2 million at December 31, 2018 and 2017 . If the investment in non-U.S. subsidiaries were held for sale instead of being held indefinitely, it is possible additional U.S. Federal and state tax liabilities may be recorded, but calculation of the tax due is not practicable. The Company does not currently anticipate that within the next 12 months there will be any events requiring the establishment of any valuation allowances against U.S. Federal net deferred tax assets. During 2017, the Internal Revenue Service (IRS) completed its examination of the Company’s 2013 tax return and the Company received a $9.7 million refund primarily related to capital loss carryforwards. The 2015 U.S. Federal tax return and subsequent years remain open to IRS examination. The Company files income tax returns with the U.S. Federal government and in various state, local and non-U.S. governmental jurisdictions, with the consolidated U.S. Federal tax return filing considered the only major tax jurisdiction. The Company endeavors to comply with tax laws and regulations where it does business, but cannot guarantee that, if challenged, the Company’s interpretation of all relevant tax laws and regulations will prevail and that all tax benefits recorded in the financial statements will ultimately be recognized in full. The following summarizes the Company’s unrecognized tax benefits, excluding interest and penalties, for the respective periods: Year Ended December 31 (in thousands) 2018 2017 2016 Beginning unrecognized tax benefits $ 17,331 $ 17,331 $ 17,331 Increases related to current year tax positions — — — Increases related to prior year tax positions 500 — — Decreases related to prior year tax positions (12,187 ) — — Decreases related to settlement with tax authorities — — — Decreases due to lapse of applicable statutes of limitations (3,161 ) — — Ending unrecognized tax benefits $ 2,483 $ 17,331 $ 17,331 The unrecognized tax benefits mainly relate to state income tax filing positions applicable to the 2014 tax period. In making these determinations, the Company presumes that taxing authorities pursuing examinations of the Company’s compliance with tax law filing requirements will have full knowledge of all relevant information, and, if necessary, the Company will pursue resolution of disputed tax positions by appeals or litigation. Although the Company cannot predict the timing of resolution with tax authorities, the Company estimates that some of the unrecognized tax benefits may change in the next 12 months due to settlement with the tax authorities. The Company expects that a $2.5 million state tax benefit, net of $0.5 million federal tax expense, will reduce the effective tax rate in the future if the unrecognized tax benefits are recognized. The Company classifies interest and penalties related to uncertain tax positions as a component of interest and other expenses, respectively. As of December 31, 2018 , the Company has accrued $0.6 million of interest related to the unrecognized tax benefits. The Company has not accrued any penalties related to the unrecognized tax benefits. |
Debt
Debt | 12 Months Ended |
Dec. 31, 2018 | |
Debt Disclosure [Abstract] | |
Debt | DEBT The Company’s borrowings consist of the following: As of December 31 (in thousands) 2018 2017 5.75% unsecured notes due June 1, 2026 (1) $ 394,675 $ — 7.25% unsecured notes due February 1, 2019 — 399,507 U.K. Credit facility (2) 82,366 93,671 Other indebtedness 96 109 Total Debt 477,137 493,287 Less: current portion (6,360 ) (6,726 ) Total Long-Term Debt $ 470,777 $ 486,561 ____________ (1) The carrying value is net of $5.3 million of unamortized debt issuance costs as of December 31, 2018 . (2) The carrying value is net of $0.2 million and $0.4 million of unamortized debt issuance costs as of December 31, 2018 and 2017 , respectively. The Company did not borrow funds under its revolving credit facility in 2018 or 2017 . The Company’s other indebtedness at December 31, 2018 and December 31, 2017 , is at an interest rate of 2% and matures in 2026 . On May 30, 2018, the Company issued $400 million senior unsecured fixed-rate notes due June 1, 2026 (the Notes). The Notes are guaranteed, jointly and severally, on a senior unsecured basis, by certain of the Company’s existing and future domestic subsidiaries, as described in the terms of the indenture, dated as of May 30, 2018 (the Indenture). The Notes have a coupon rate of 5.75% per annum, payable semi-annually on June 1 and December 1. The Company may redeem the Notes in whole or in part at any time at the respective redemption prices described in the Indenture. On June 29, 2018, the Company used the net proceeds from the sale of the Notes, together with cash on hand, to redeem the $400 million of 7.25% notes due February 1, 2019. The Company incurred $11.4 million in debt extinguishment costs in relation to the early termination of the 7.25% notes. In combination with the issuance of the Notes, the Company and certain of the Company’s domestic subsidiaries named therein as guarantors entered into an amended and restated credit agreement providing for a U.S. $300 million five -year revolving credit facility (the Revolving Credit Facility) with each of the lenders party thereto, certain of the Company’s foreign subsidiaries from time to time party thereto as foreign borrowers, Wells Fargo Bank, N.A., as Administrative Agent (Wells Fargo), JPMorgan Chase Bank, N.A., as Syndication Agent, and HSBC Bank USA, N.A. and Bank of America, N.A. as Documentation Agents (the Amended and Restated Credit Agreement), which amends and restates the Company’s existing Five Year Credit Agreement, dated as of June 29, 2015, among the Company, certain of its domestic subsidiaries as guarantors, the several lenders from time to time party thereto, Wells Fargo Bank, N.A., as Administrative Agent and JPMorgan Chase Bank, N.A., as Syndication Agent (the Existing Credit Agreement). The Amended and Restated Credit Agreement amends the Existing Credit Agreement to (i) extend the maturity of the Revolving Credit Facility to May 30, 2023, unless the Company and the lenders agree to further extend the term, (ii) increase the aggregate principal amount of the Revolving Credit Facility to U.S. $300 million , consisting of a U.S. Dollar tranche of U.S. $200 million for borrowings in U.S. Dollars and a multicurrency tranche equivalent to U.S. $100 million for borrowings in U.S. Dollars and certain foreign currencies, (iii) provide for borrowings under the Revolving Credit Facility in U.S. Dollars and certain other foreign currencies specified in the Amended and Restated Credit Agreement, (iv) permit certain foreign subsidiaries of the Company to be added to the Amended and Restated Credit Agreement as foreign borrowers thereunder and (v) effect certain other modifications to the Existing Credit Agreement. Under the Amended and Restated 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 average daily unused portion of the Revolving Credit Facility. Any borrowings under the Amended and Restated Credit Agreement 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, 0.5 percent above the Federal funds rate or the one-month Eurodollar rate plus 1% , or (b) the Eurodollar rate for the applicable currency and interest period as defined in the Amended and Restated Credit Agreement, which is generally a periodic rate equal to LIBOR, CDOR, BBSY or SOR, as applicable, in the case of each of clauses (a) and (b) plus an applicable margin that depends on the Company’s consolidated debt to consolidated adjusted EBITDA (as determined pursuant to the Amended and Restated Credit Agreement, Total Net Leverage Ratio). The Company and its foreign subsidiaries may draw on the Revolving Credit Facility for general corporate purposes. Any outstanding borrowings must be repaid on or prior to the final termination date. The Amended and Restated 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 Total Net 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 Amended and Restated Credit Agreement. As of December 31, 2018 , the Company is in compliance with all financial covenants. On July 14, 2016, Kaplan entered into a credit agreement (the Kaplan Credit Agreement) among Kaplan International Holdings Limited, as borrower, the lenders party thereto, HSBC BANK PLC as Facility Agent, and other agents party thereto. The Kaplan Credit Agreement provides for a four-year credit facility in an aggregate principal amount of £75 million . Borrowings bear interest at a rate per annum of LIBOR plus an applicable interest rate margin between 1.25% and 1.75% , in each case determined on a quarterly basis by reference to a pricing grid based upon the Company’s total leverage ratio. The Kaplan Credit Agreement requires that 6.66% of the amount of the loan be repaid on the first three anniversaries of funding, with the remaining balance due on July 1, 2020. The Kaplan 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 Kaplan Credit Agreement. As of December 31, 2018 , the Company is in compliance with all financial covenants. On July 25, 2016, Kaplan borrowed £75 million under the Kaplan Credit Agreement. On the same date, Kaplan entered into an interest rate swap agreement with a total notional value of £75 million and a maturity date of July 1, 2020. The interest rate swap agreement will pay Kaplan variable interest on the £75 million notional amount at the three-month LIBOR, and Kaplan will pay the counterparties a fixed rate of 0.51% , effectively resulting in a total fixed interest rate of 2.01% on the outstanding borrowings at the current applicable margin of 1.50% . The interest rate swap agreement was entered into to convert the variable rate British pound borrowing under the Kaplan Credit Agreement into a fixed rate borrowing. The Company provided a guarantee on any borrowings under the Kaplan Credit Agreement. Based on the terms of the interest rate swap agreement and the underlying borrowing, the interest rate swap agreement was determined to be effective and thus qualifies as a cash flow hedge. As such, changes in the fair value of the interest rate swap are recorded in other comprehensive income on the accompanying Consolidated Balance Sheets until earnings are affected by the variability of cash flows. During 2018 and 2017 , the Company had average borrowings outstanding of approximately $517.2 million and $493.2 million , respectively, at average annual interest rates of approximately 5.6% and 6.3% , respectively. The Company incurred net interest expense of $32.5 million , $27.3 million and $32.3 million during 2018 , 2017 and 2016 , respectively. In June 2018, the Company incurred $6.2 million of interest expense related to the mandatorily redeemable noncontrolling interest redemption settlement at GHG (see Note 3). The fair value of the mandatorily redeemable noncontrolling interest is based on the redemption value resulting from a negotiated settlement. The Company recorded interest income of $2.3 million and interest expense of $2.7 million for the years ended December 31, 2017 and 2016 , respectively, to adjust the fair value of the mandatorily redeemable noncontrolling interest (see Note 3). The fair value of the mandatorily redeemable noncontrolling interest was based on an EBITDA multiple, adjusted for working capital and other items, which approximates fair value (Level 3 fair value assessment). At December 31, 2018 , the fair value of the Company’s 5.75% unsecured notes, based on quoted market prices (Level 2 fair value assessment), totaled $406.7 million , compared with the carrying amount of $394.7 million . At December 31, 2017, the fair value of the Company’s 7.25% unsecured notes, based on quoted market prices (Level 2 fair value assessment), totaled $414.7 million , compared with the carrying amount of $399.5 million . The carrying value of the Company’s other unsecured debt at December 31, 2018 , approximates fair value. |
Fair Value Measurements
Fair Value Measurements | 12 Months Ended |
Dec. 31, 2018 | |
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 December 31, 2018 (in thousands) Level 1 Level 2 Total Assets Money market investments (1) $ — $ 75,500 $ 75,500 Marketable equity securities (2) 496,390 — 496,390 Other current investments (3) 11,203 6,988 18,191 Interest rate swap (4) — 369 369 Total Financial Assets $ 507,593 $ 82,857 $ 590,450 Liabilities Deferred compensation plan liabilities (5) $ — $ 36,080 $ 36,080 As of December 31, 2017 (in thousands) Level 1 Level 2 Level 3 Total Assets Money market investments (1) $ — $ 217,628 $ — $ 217,628 Marketable equity securities (2) 536,315 — — 536,315 Other current investments (3) 9,831 11,007 — 20,838 Total Financial Assets $ 546,146 $ 228,635 $ — $ 774,781 Liabilities Deferred compensation plan liabilities (5) $ — $ 43,414 $ — $ 43,414 Interest rate swap (6) — 244 — 244 Mandatorily redeemable noncontrolling interest (7) — — 10,331 10,331 Total Financial Liabilities $ — $ 43,658 $ 10,331 $ 53,989 ____________ (1) The Company’s money market investments are included in cash, cash equivalents and restricted cash and the value considers the liquidity of the counterparty. (2) The Company’s investments in marketable equity securities are held in common shares of U.S. corporations that are actively traded on U.S. stock exchanges. Price quotes for these shares are readily available. Investments in marketable securities were classified as available-for-sale in 2017 prior to the adoption of the new accounting guidance (see Note 2). (3) Includes U.S. Government Securities, corporate bonds, mutual funds and time deposits. These investments are valued using a market approach based on the quoted market prices of the security or inputs that include quoted market prices for similar instruments and are classified as either Level 1 or Level 2 in the fair value hierarchy. (4) Included in Deferred Charges and Other Assets. 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. (5) Includes Graham Holdings Company’s Deferred Compensation Plan and supplemental savings plan benefits under the Graham Holdings Company’s Supplemental Executive Retirement Plan, which are included in accrued compensation and related benefits. These plans measure the market value of a participant’s balance in a notional investment account that is comprised primarily of mutual funds, which are based on observable market prices. However, since the deferred compensation obligations are not exchanged in an active market, they are classified as Level 2 in the fair value hierarchy. Realized and unrealized gains (losses) on deferred compensation are included in operating income. (6) Included in Other liabilities. The Company utilized a market approach model using the notional amount of the interest rate swap multiplied by the observable inputs of time to maturity and market interest rates. (7) The fair value of the mandatorily redeemable noncontrolling interest is based on an EBITDA multiple, adjusted for working capital and other items, which approximates fair value. During the year ended December 31, 2018 , the Company recorded gains of $11.7 million to equity securities that are accounted for as cost method investments based on observable transactions for identical or similar investments of the same issuer. For the years ended December 31, 2018 , 2017 and 2016 , the Company recorded goodwill and other long-lived asset impairment charges of $8.1 million , $9.6 million and $1.6 million , respectively. The remeasurement of the goodwill and other long-lived assets is classified as a Level 3 fair value assessment due to the significance of unobservable inputs developed in the determination of the fair value. 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. For the year ended December 31, 2016, the Company recorded impairment charges totaling $27.0 million to its cost method investment relating to a preferred equity interest in a vocational school company due to a decline in business conditions. The measurement of the preferred equity interest is classified as a Level 3 fair value assessment due to the significance of unobservable inputs developed in the determination of the fair value. The Company used a discounted cash flow model to determine the estimated fair value of the preferred equity interest and made estimates and assumptions regarding future cash flows, discount rates, long-term growth rates and market values to determine the estimated fair value. |
Revenue from Contracts with Cus
Revenue from Contracts with Customers | 12 Months Ended |
Dec. 31, 2018 | |
Revenue from Contract with Customer [Abstract] | |
Revenue from Contracts with Customers | REVENUE FROM CONTRACTS WITH CUSTOMERS Revenue Recognition. The following table presents the Company’s revenue disaggregated by revenue source for the years ended December 31, 2018 , 2017 and 2016: Year Ended December 31 (in thousands) 2018 2017 2016 Education Revenue Kaplan international $ 719,982 $ 697,999 $ 696,362 Higher education 342,085 431,425 501,784 Test preparation 256,102 273,298 286,556 Professional (U.S.) 134,187 115,839 115,263 Kaplan corporate and other 1,142 294 214 Intersegment elimination (2,483 ) (2,079 ) (1,718 ) 1,451,015 1,516,776 1,598,461 Television broadcasting 505,549 409,916 409,718 Manufacturing 487,619 414,193 241,604 Healthcare 149,275 154,202 146,962 SocialCode 58,728 62,077 58,851 Other 43,880 34,733 26,433 Intersegment elimination (100 ) (51 ) (139 ) Total Revenue $ 2,695,966 $ 2,591,846 $ 2,481,890 The Company generated 76% of its revenue from U.S. domestic sales for the year ended December 31, 2018 . The remaining 24% of revenue was generated from non-U.S. sales. For the year ended December 31, 2018 , the Company recognized 80% of its revenue over time as control of the services and goods transferred to the customer. The remaining 20% of revenue was recognized at a point in time, when the customer obtained control of the promised goods. The determination of the method by which the Company measures its progress towards the satisfaction of its performance obligations requires judgment and is described in the Summary of Significant Accounting Policies (Note 2). Deferred Revenue. The Company records deferred revenue when cash payments are received or due in advance of the Company’s performance, including amounts which are refundable. The following table presents the change in the Company’s deferred revenue balance during the year ended December 31, 2018 : As of December 31, January 1, % (in thousands) Change Deferred revenue $ 311,214 $ 342,640 (9) The majority of the change in the deferred revenue balance is related to the KU Transaction. During the year ended December 31, 2018 , the Company recognized $259.2 million related to the Company’s deferred revenue balance as of January 1, 2018. Revenue allocated to remaining performance obligations represents deferred revenue amounts that will be recognized as revenue in future periods. As of December 31, 2018 , KTP’s deferred revenue balance related to certain medical and nursing qualifications with an original contract length greater than twelve months was $5.6 million . KTP expects to recognize 81% of this revenue over the next twelve months and the remainder thereafter. Costs to Obtain a Contract. The following table presents changes in the Company’s costs to obtain a contract asset during the year ended December 31, 2018 : (in thousands) Balance at Beginning of Year Costs Associated with New Contracts Less: Costs Amortized during the Year Other Balance at End of Year 2018 $ 16,043 $ 55,664 $ (49,284 ) $ (1,112 ) $ 21,311 The majority of other activity is related to currency translation adjustments during the year ended December 31, 2018 . |
Capital Stock, Stock Awards, an
Capital Stock, Stock Awards, and Stock Options | 12 Months Ended |
Dec. 31, 2018 | |
Capital Stock, Stock Awards, and Stock Options [Abstract] | |
Capital Stock, Stock Awards And Stock Options | CAPITAL STOCK, STOCK AWARDS AND STOCK OPTIONS Capital Stock. Each share of Class A common stock and Class B common stock participates equally in dividends. The Class B stock has limited voting rights and as a class has the right to elect 30% of the Board of Directors; the Class A stock has unlimited voting rights, including the right to elect a majority of the Board of Directors. During 2018 , 2017 , and 2016 the Company purchased a total of 199,023 , 88,361 , and 229,498 shares, respectively, of its Class B common stock at a cost of approximately $118.0 million , $50.8 million , and $108.9 million , respectively. On November 9, 2017, the Board of Directors authorized the Company to acquire up to 500,000 shares of its Class B common stock. The Company did not announce a ceiling price or time limit for the purchases. The authorization included 163,237 shares that remained under the previous authorization. At December 31, 2018 , the Company had remaining authorization from the Board of Directors to purchase up to 273,655 shares of Class B common stock. Stock Awards. In 2012, the Company adopted an incentive compensation plan (the 2012 Plan), which, among other provisions, authorizes the awarding of Class B common stock to key employees in the form of stock awards, stock options and other awards involving the actual transfer of shares. All stock awards, stock options and other awards involving the actual transfer of shares issued subsequent to the adoption of this plan are covered under this incentive compensation plan. Stock awards made under the 2012 Plan are primarily subject to the general restriction that stock awarded to a participant will be forfeited and revert to Company ownership if the participant’s employment terminates before the end of a specified period of service to the Company. Some of the awards are also subject to performance conditions and will be forfeited and revert to Company ownership if the conditions are not met. The number of Class B common shares authorized for issuance under the 2012 Plan is 772,588 shares. At December 31, 2018 , there were 575,208 shares reserved for issuance under the 2012 incentive compensation plan. Of this number, 138,131 shares were subject to stock awards and stock options outstanding, and 437,077 shares were available for future awards. Activity related to stock awards under the 2012 incentive compensation plan for the year ended December 31, 2018 was as follows: Number of Shares Average Grant-Date Fair Value Beginning of year, unvested 51,575 $ 744.07 Awarded 375 875.40 Vested (14,275 ) 694.81 Forfeited (5,475 ) 863.21 End of Year, unvested 32,200 747.18 For the share awards outstanding at December 31, 2018 , the aforementioned restriction will lapse in 2019 for 18,500 shares, in 2020 for 250 shares and in 2021 for 13,450 shares. Also, in early 2019 , the Company issued stock awards of 16,665 shares. Stock-based compensation costs resulting from Company stock awards were $4.4 million , $8.1 million and $11.0 million in 2018 , 2017 and 2016 , respectively. As of December 31, 2018 , there was $3.6 million of total unrecognized compensation expense related to these awards. That cost is expected to be recognized on a straight-line basis over a weighted average period of 0.9 years. Stock Options. The Company’s 2003 employee stock option plan reserves 1,900,000 shares of the Company’s Class B common stock for options to be granted under the plan. The purchase price of the shares covered by an option cannot be less than the fair value on the grant date. Options generally vest over six years and have a maximum term of ten years. At December 31, 2018 , there were 79,001 shares reserved for issuance under this stock option plan, which were all subject to options outstanding. Stock options granted under the 2012 Plan cannot be less than the fair value on the grant date, generally vest over six years and have a maximum term of ten years. In 2017, a grant was issued that vests over six years. Activity related to options outstanding for the year ended December 31, 2018 was as follows: Number of Shares Average Option Price Beginning of year 185,520 $ 565.65 Granted — — Exercised (588 ) 281.18 Expired or forfeited — — End of Year 184,932 566.55 Of the shares covered by options outstanding at the end of 2018 , 145,138 are now exercisable; 17,333 will become exercisable in 2019 ; 17,334 will become exercisable in 2020 ; 4,459 will become exercisable in 2021 ; 333 will become exercisable in 2022 ; and 335 will become exercisable in 2023 . For 2018 , 2017 and 2016 , the Company recorded expense of $2.0 million , $2.0 million and $2.4 million related to stock options, respectively. Information related to stock options outstanding and exercisable at December 31, 2018 , is as follows: Options Outstanding Options Exercisable Range of Exercise Prices Shares Outstanding at 12/31/2018 Weighted Average Remaining Contractual Life (years) Weighted Shares Exercisable at 12/31/2018 Weighted Weighted $244–276 3,674 2.5 $ 259.19 3,674 2.5 $ 259.19 325 77,258 2.1 325.26 77,258 2.1 325.26 719 77,258 5.8 719.15 51,504 5.8 719.15 805–872 26,742 7.0 865.02 12,702 6.9 866.03 184,932 4.4 566.55 145,138 3.9 510.69 At December 31, 2018 , the intrinsic value for all options outstanding, exercisable and unvested was $25.8 million , $25.8 million and $0.0 million , respectively. The intrinsic value of a stock option is the amount by which the market value of the underlying stock exceeds the exercise price of the option. The market value of the Company’s stock was $640.58 at December 31, 2018 . At December 31, 2018 , there were 39,794 unvested options related to this plan with an average exercise price of $770.29 and a weighted average remaining contractual term of 6.3 years. At December 31, 2017 , there were 57,126 unvested options with an average exercise price of $770.67 and a weighted average remaining contractual term of 7.2 years. As of December 31, 2018 , total unrecognized stock-based compensation expense related to stock options was $4.4 million , which is expected to be recognized on a straight-line basis over a weighted average period of approximately 2.3 years. There were 588 options exercised during 2018 . The total intrinsic value of options exercised during 2018 was $0.2 million ; a tax benefit from these stock option exercises of $0.1 million was realized. There were 3,476 options exercised during 2017 . The total intrinsic value of options exercised during 2017 was $0.7 million ; a tax benefit from these stock option exercises of $0.3 million was realized. There were 4,726 options exercised during 2016 . The total intrinsic value of options exercised during 2016 was $1.2 million ; a tax benefit from these option exercises of $0.5 million was realized. During 2017, the Company granted 2,000 options at an exercise price above the fair market value of its common stock at the date of grant. The weighted average grant-date fair value of options granted during 2017 was $120.47 . No options were granted during 2018 or 2016. The fair value of options at date of grant was estimated using the Black-Scholes method utilizing the following assumptions: 2017 Expected life (years) 8 Interest rate 2.28% Volatility 26.93% Dividend yield 0.85% The Company also maintains a stock option plan at Kaplan. Under the provisions of this plan, options are issued with an exercise price equal to the estimated fair value of Kaplan’s common stock, and options vest ratably over the number of years specified (generally four to five years) at the time of the grant. Upon exercise, an option holder may receive Kaplan shares or cash equal to the difference between the exercise price and the then fair value. At December 31, 2018 , a Kaplan senior manager holds 7,206 Kaplan restricted shares. The fair value of Kaplan’s common stock is determined by the Company’s compensation committee of the Board of Directors, and in January 2019 , the committee set the fair value price at $1,575 per share. No options were awarded during 2018 , 2017 , or 2016 ; no options were exercised during 2018 , 2017 or 2016 ; and no options were outstanding at December 31, 2018 . Kaplan recorded stock compensation expense of $0.5 million , $1.2 million , and $0.6 million in 2018 , 2017 and 2016 , respectively. At December 31, 2018 , the Company’s accrual balance related to the Kaplan restricted shares totaled $11.3 million . There were no payouts in 2018 , 2017 or 2016 . Earnings Per Share. 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 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 net income and share data used in the basic and diluted earnings per share computations using the two-class method: Year Ended December 31 (in thousands, except per share amounts) 2018 2017 2016 Numerator: Numerator for basic earnings per share: Net income attributable to Graham Holdings Company common stockholders $ 271,206 $ 302,044 $ 168,590 Less: Dividends paid–common stock outstanding and unvested restricted shares (28,617 ) (28,329 ) (27,325 ) Undistributed earnings 242,589 273,715 141,265 Percent allocated to common stockholders 99.39 % 99.06 % 98.79 % 241,115 271,150 139,562 Add: Dividends paid–common stock outstanding 28,423 28,060 26,962 Numerator for basic earnings per share 269,538 299,210 166,524 Add: Additional undistributed earnings due to dilutive stock options 10 17 9 Numerator for diluted earnings per share $ 269,548 $ 299,227 $ 166,533 Denominator: Denominator for basic earnings per share: Weighted average shares outstanding 5,333 5,516 5,559 Add: Effect of dilutive stock options 37 36 30 Denominator for diluted earnings per share 5,370 5,552 5,589 Graham Holdings Company Common Stockholders: Basic earnings per share $ 50.55 $ 54.24 $ 29.95 Diluted earnings per share $ 50.20 $ 53.89 $ 29.80 Diluted earnings per share excludes the following weighted average potential common shares, as the effect would be antidilutive, as computed under the treasury stock method: Year Ended December 31 (in thousands) 2018 2017 2016 Weighted average restricted stock 23 30 40 The 2018 , 2017 and 2016 diluted earnings per share amounts exclude the effects of 104,000 , 104,000 and 102,000 stock options outstanding, respectively, as their inclusion would have been antidilutive due to a market condition. The 2018 , 2017 and 2016 diluted earnings per share amounts also exclude the effects of 2,650 , 5,250 and 5,450 restricted stock awards, respectively, as their inclusion would have been antidilutive due to a performance condition. In 2018 , 2017 and 2016 , the Company declared regular dividends totaling $5.32 , $5.08 and $4.84 per share, respectively. |
Pension and Postretirement Plan
Pension and Postretirement Plans | 12 Months Ended |
Dec. 31, 2018 | |
Retirement Benefits, Description [Abstract] | |
Pension and Postretirement Plans | PENSIONS AND OTHER POSTRETIREMENT PLANS The Company maintains various pension and incentive savings plans and contributed to multiemployer plans on behalf of certain union-represented employee groups. Most of the Company’s employees are covered by these plans. The Company also provides healthcare and life insurance benefits to certain retired employees. These employees become eligible for benefits after meeting age and service requirements. The Company uses a measurement date of December 31 for its pension and other postretirement benefit plans. In the first quarter of 2018, the Company adopted new guidance which requires the presentation of service cost in the same line item as other compensation costs arising from services by employees during the period, while the other components of the net periodic benefit are recognized in non-operating pension and postretirement benefit income in the Company’s Consolidated Statements of Operations. On March 22, 2018, the Company eliminated the accrual of pension benefits for certain Kaplan University employees related to their future service. As a result, the Company remeasured the accumulated and projected benefit obligation of the pension plan as of March 22, 2018, and the Company recorded a curtailment gain in the first quarter of 2018. The new measurement basis was used for the recognition of the Company’s pension benefit following the remeasurement. The curtailment gain on the Kaplan University transaction is included in the gain on the Kaplan University transaction and reported in Other income (expense), net on the Consolidated Statements of Operations. On October 31, 2018, t he Company made certain changes to the other postretirement plans, including changes in eligibility, cost sharing and surviving spouse coverage. As a result, the Company remeasured the accumulated and projected benefit obligation of the other postretirement plans as of October 31, 2018, and the Company recorded a curtailment gain in the fourth quarter of 2018. The new measurement basis was used for the recognition of the Company’s other postretirement plans cost following the remeasurement. Defined Benefit Plans. The Company’s defined benefit pension plans consist of various pension plans and a Supplemental Executive Retirement Plan (SERP) offered to certain executives of the Company. In the fourth quarter of 2018, the Company offered certain terminated participants with a vested pension benefit an opportunity to take their benefits in the form of a lump sum or an annuity. Most of the participants that elected a lump sum benefit under the program were paid in December 2018. Additional lump sum payments were paid in early 2019. The Company recorded a $26.9 million settlement gain related to the bulk lump sum pension program offering. In the fourth quarter of 2017, the Company recorded $0.9 million related to a Separation Incentive Program for certain Kaplan employees, which was funded from the assets of the Company’s pension plan. In the third quarter of 2017, the Company recorded $0.9 million related to a Separation Incentive Program for certain Forney employees, which was funded from the assets of the Company’s pension plan. In the fourth quarter of 2016, the Company offered certain terminated participants with a vested pension benefit an opportunity to take their benefits in the form of a lump sum or an annuity. Most of the participants that elected a lump sum benefit under the program were paid in December 2016. Additional lump sum payments were paid in early 2017. The Company recorded an $18.0 million settlement gain related to the bulk lump sum pension program offering. The following table sets forth obligation, asset and funding information for the Company’s defined benefit pension plans: Pension Plans As of December 31 (in thousands) 2018 2017 Change in Benefit Obligation Benefit obligation at beginning of year $ 1,286,694 $ 1,160,897 Service cost 18,221 18,687 Interest cost 46,787 47,925 Amendments 7,183 75 Actuarial (gain) loss (81,851 ) 73,191 Acquisitions — 58,600 Benefits paid (63,852 ) (74,506 ) Special termination benefits — 1,825 Curtailment (836 ) — Settlement (95,777 ) — Benefit Obligation at End of Year $ 1,116,569 $ 1,286,694 Change in Plan Assets Fair value of assets at beginning of year $ 2,343,471 $ 2,042,490 Actual return on plan assets (63,715 ) 375,487 Benefits paid (63,852 ) (74,506 ) Settlement (95,777 ) — Fair Value of Assets at End of Year $ 2,120,127 $ 2,343,471 Funded Status $ 1,003,558 $ 1,056,777 SERP As of December 31 (in thousands) 2018 2017 Change in Benefit Obligation Benefit obligation at beginning of year $ 110,082 $ 106,526 Service cost 819 858 Interest cost 3,865 4,233 Amendments 1,028 — Actuarial (gain) loss (7,552 ) 4,041 Benefits paid (5,694 ) (5,576 ) Benefit Obligation at End of Year $ 102,548 $ 110,082 Change in Plan Assets Fair value of assets at beginning of year $ — $ — Employer contributions 5,694 5,576 Benefits paid (5,694 ) (5,576 ) Fair Value of Assets at End of Year $ — $ — Funded Status $ (102,548 ) $ (110,082 ) The change in the Company’s benefit obligation for the pension plans was primarily due to the settlement gain recognized related to the bulk lump sum pension program offering and an actuarial gain recognized as a result of an increase to the discount rate used to measure the benefit obligation. The change in the benefit obligation for the Company’s SERP was due to the recognition of an actuarial gain resulting from an increase to the discount rate used to measure the benefit obligation. The accumulated benefit obligation for the Company’s pension plans at December 31, 2018 and 2017 , was $1,097.3 million and $1,261.8 million , respectively. The accumulated benefit obligation for the Company’s SERP at December 31, 2018 and 2017 , was $102.2 million and $108.0 million , respectively. The amounts recognized in the Company’s Consolidated Balance Sheets for its defined benefit pension plans are as follows: Pension Plans SERP As of December 31 As of December 31 (in thousands) 2018 2017 2018 2017 Noncurrent asset $ 1,003,558 $ 1,056,777 $ — $ — Current liability — — (6,321 ) (5,838 ) Noncurrent liability — — (96,227 ) (104,244 ) Recognized Asset (Liability) $ 1,003,558 $ 1,056,777 $ (102,548 ) $ (110,082 ) Key assumptions utilized for determining the benefit obligation are as follows: Pension Plans SERP As of December 31 As of December 31 2018 2017 2018 2017 Discount rate 4.3% 3.6% 4.3% 3.6% Rate of compensation increase – age graded 5.0%–1.0% 5.0%–1.0% 5.0%–1.0% 5.0%–1.0% Cash balance interest crediting rate 3.50% with phase in to 4.30% in 2021 2.23% with phase in to 3.00% in 2020 — — The Company made no contributions to its pension plans in 2018 and 2017 , and the Company does no t expect to make any contributions in 2019 . The Company made contributions to its SERP of $5.7 million and $5.6 million for the years ended December 31, 2018 and 2017 , respectively. As the plan is unfunded, the Company makes contributions to the SERP based on actual benefit payments. At December 31, 2018 , future estimated benefit payments, excluding charges for early retirement programs, are as follows: (in thousands) Pension Plans SERP 2019 $ 76,245 $ 6,456 2020 $ 76,715 $ 6,743 2021 $ 75,956 $ 6,946 2022 $ 75,909 $ 7,078 2023 $ 75,389 $ 7,149 2024–2028 $ 367,130 $ 35,656 The total (benefit) cost arising from the Company’s defined benefit pension plans consists of the following components: Pension Plans Year Ended December 31 (in thousands) 2018 2017 2016 Service cost $ 18,221 $ 18,687 $ 20,461 Interest cost 46,787 47,925 51,608 Expected return on assets (129,220 ) (121,411 ) (121,470 ) Amortization of prior service cost 150 170 297 Recognized actuarial gain (9,969 ) (4,410 ) — Net Periodic Benefit for the Year (74,031 ) (59,039 ) (49,104 ) Curtailment (806 ) — — Settlement (26,917 ) — (17,993 ) Early retirement programs and special separation benefit expense — 1,825 — Total Benefit for the Year $ (101,754 ) $ (57,214 ) $ (67,097 ) Other Changes in Plan Assets and Benefit Obligations Recognized in Other Comprehensive Income Current year actuarial loss (gain) $ 111,084 $ (180,885 ) $ 147,779 Current year prior service cost 7,183 75 — Amortization of prior service cost (150 ) (170 ) (297 ) Recognized net actuarial gain 9,969 4,410 — Curtailment and settlement 26,887 — 17,993 Total Recognized in Other Comprehensive Income (Before Tax Effects) $ 154,973 $ (176,570 ) $ 165,475 Total Recognized in Total Benefit and Other Comprehensive Income (Before Tax Effects) $ 53,219 $ (233,784 ) $ 98,378 SERP Year Ended December 31 (in thousands) 2018 2017 2016 Service cost $ 819 $ 858 $ 985 Interest cost 3,865 4,233 4,384 Amortization of prior service cost 311 455 457 Recognized actuarial loss 2,403 1,774 2,659 Total Cost for the Year $ 7,398 $ 7,320 $ 8,485 Other Changes in Benefit Obligations Recognized in Other Comprehensive Income Current year actuarial (gain) loss $ (7,552 ) $ 4,041 $ 1,120 Current year prior service cost 1,028 — — Amortization of prior service cost (311 ) (455 ) (457 ) Recognized net actuarial loss (2,403 ) (1,774 ) (2,659 ) Total Recognized in Other Comprehensive Income (Before Tax Effects) $ (9,238 ) $ 1,812 $ (1,996 ) Total Recognized in Total Cost and Other Comprehensive Income (Before Tax Effects) $ (1,840 ) $ 9,132 $ 6,489 The costs for the Company’s defined benefit pension plans are actuarially determined. Below are the key assumptions utilized to determine periodic cost: Pension Plans SERP Year Ended December 31 Year Ended December 31 2018 2017 2016 2018 2017 2016 Discount rate (1) 4.0%/3.6% 4.1% 4.3% 3.6% 4.1% 4.3% Expected return on plan assets 6.25% 6.25% 6.5% — — — Rate of compensation increase Age graded Age graded 4.0% Age graded Age graded 4.0% Cash balance interest crediting rate 2.23% with phase in to 3.00% in 2020 1.57% with phase in to 3.00% in 2020 1.41% with phase in to 3.00% in 2019 — — — ___________ _ (1) As a result of the Kaplan University transaction, the Company remeasured the accumulated and projected benefit obligation of the pension plan as of March 22, 2018. The remeasurement changed the discount rate from 3.6% for the period January 1 to March 23, 2018 to 4.0% for the period after March 23, 2018. Accumulated other comprehensive income (AOCI) includes the following components of unrecognized net periodic cost for the defined benefit plans: Pension Plans SERP As of December 31 As of December 31 (in thousands) 2018 2017 2018 2017 Unrecognized actuarial (gain) loss $ (313,809 ) $ (461,779 ) $ 17,270 $ 27,225 Unrecognized prior service cost 7,273 270 1,037 320 Gross Amount (306,536 ) (461,509 ) 18,307 27,545 Deferred tax liability (asset) 82,765 124,607 (4,943 ) (7,437 ) Net Amount $ (223,771 ) $ (336,902 ) $ 13,364 $ 20,108 Defined Benefit Plan Assets. The Company’s defined benefit pension obligations are funded by a portfolio made up of a U.S. stock index fund, 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 plans were allocated as follows: As of December 31 2018 2017 U.S. equities 53 % 53 % U.S. stock index fund 28 % 30 % U.S. fixed income 13 % 11 % International equities 6 % 6 % 100 % 100 % The Company manages approximately 46% of the pension assets internally, of which the majority is invested in a U.S. stock index fund with the remaining investments in Berkshire Hathaway stock and short-term fixed-income securities. The remaining 54% of plan assets are 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 investment 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 from the Plan administrator. As of December 31, 2018 , the investment managers can invest no more than 23% of the assets they manage 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. 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 December 31, 2018 . 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 December 31, 2018 and 2017 , the pension plan held investments in one common stock and one U.S. stock index fund that exceeded 10% of total plan assets. These investments were valued at $945.6 million and $1,079.3 million at December 31, 2018 and 2017 , respectively, or approximately 45% and 46% , respectively, of total plan assets. The Company’s pension plan assets measured at fair value on a recurring basis were as follows: As of December 31, 2018 (in thousands) Level 1 Level 2 Level 3 Total Cash equivalents and other short-term investments $ 2,068 $ 269,544 $ — $ 271,612 Equity securities U.S. equities 1,115,323 — — 1,115,323 International equities 131,912 — — 131,912 U.S. stock index fund — — 601,395 601,395 Total Investments $ 1,249,303 $ 269,544 $ 601,395 $ 2,120,242 Payable for settlement of investments purchased, net (115 ) Total $ 2,120,127 As of December 31, 2017 (in thousands) Level 1 Level 2 Level 3 Total Cash equivalents and other short-term investments $ 73,877 $ 181,638 $ — $ 255,515 Equity securities U.S. equities 1,242,139 — — 1,242,139 International equities 138,640 — — 138,640 U.S. stock index fund — — 706,202 706,202 Total Investments $ 1,454,656 $ 181,638 $ 706,202 $ 2,342,496 Receivables 975 Total $ 2,343,471 Cash equivalents and other short-term investments. These investments are primarily held in U.S. Treasury securities and registered money market funds. These investments are valued using a market approach based on the quoted market prices of the security or inputs that include quoted market prices for similar instruments and are classified as either Level 1 or Level 2 in the valuation hierarchy. U.S. equities. These investments are held in common and preferred stock of U.S. corporations and American Depositary Receipts (ADRs) traded on U.S. exchanges. Common and preferred shares and ADRs are traded actively on exchanges, and price quotes for these shares are readily available. These investments are classified as Level 1 in the valuation hierarchy. International equities. These investments are held in common and preferred stock issued by non-U.S. corporations. Common and preferred shares are traded actively on exchanges, and price quotes for these shares are readily available. These investments are classified as Level 1 in the valuation hierarchy. U.S. stock index fund. This fund consists of investments held in a diversified mix of securities (U.S. and international stocks, and fixed-income securities) and a combination of other collective funds that together are designed to track the performance of the S&P 500 Index. The fund is valued using the net asset value (NAV) provided by the administrator of the fund and reviewed by the Company. The NAV is based on the value of the underlying assets owned by the fund, minus liabilities and divided by the number of units outstanding. The investment in this fund may be redeemed daily, subject to the restrictions of the fund. This investment is classified as Level 3 in the valuation hierarchy. The following table provides a reconciliation of changes in pension assets measured at fair value on a recurring basis, using Level 3 inputs: U.S. Stock Index Fund Year Ended December 31 (in thousands) 2018 2017 Balance at Beginning of Year $ 706,202 $ 622,865 Purchases, sales, and settlements, net (80,000 ) (50,000 ) Actual return on plan assets: Gains relating to assets sold 2,819 6,796 (Losses) gains relating to assets still held at year-end (27,626 ) 126,541 Balance at End of Year $ 601,395 $ 706,202 Other Postretirement Plans. The following table sets forth obligation, asset and funding information for the Company’s other postretirement plans: Postretirement Plans As of December 31 (in thousands) 2018 2017 Change in Benefit Obligation Benefit obligation at beginning of year $ 22,785 $ 24,171 Service cost 892 1,028 Interest cost 620 779 Amendments (12,473 ) — Actuarial gain (2,519 ) (2,830 ) Acquisitions — 516 Benefits paid, net of Medicare subsidy (782 ) (879 ) Benefit Obligation at End of Year $ 8,523 $ 22,785 Change in Plan Assets Fair value of assets at beginning of year $ — $ — Employer contributions 782 879 Benefits paid, net of Medicare subsidy (782 ) (879 ) Fair Value of Assets at End of Year $ — $ — Funded Status $ (8,523 ) $ (22,785 ) The change in the benefit obligation for the Company’s other postretirement plans was primarily due to the impact of amendments to the plans, including changes to eligibility, cost sharing and surviving spouse coverage, as well as the recognition of an actuarial gain resulting from an increase to the discount rate used to measure the benefit obligation. The amounts recognized in the Company’s Consolidated Balance Sheets for its other postretirement plans are as follows: Postretirement Plans As of December 31 (in thousands) 2018 2017 Current liability $ (1,399 ) $ (1,920 ) Noncurrent liability (7,124 ) (20,865 ) Recognized Liability $ (8,523 ) $ (22,785 ) The discount rates utilized for determining the benefit obligation at December 31, 2018 and 2017 , for the postretirement plans were 3.69% and 3.11% , respectively. The assumed healthcare cost trend rate used in measuring the postretirement benefit obligation at December 31, 2018 , was 7.41% for pre-age 65, decreasing to 4.5% in the year 2026 and thereafter. The assumed healthcare cost trend rate used in measuring the postretirement benefit obligation at December 31, 2018 , was 7.96% for post-age 65, decreasing to 4.5% in the year 2026 and thereafter. The assumed healthcare cost trend rate used in measuring the postretirement benefit obligation at December 31, 2018 , was 12.74% for Medicare Advantage, decreasing to 4.5% in the year 2028 and thereafter. The Company made contributions to its postretirement benefit plans of $0.8 million and $0.9 million for the years ended December 31, 2018 and 2017 , respectively. As the plans are unfunded, the Company makes contributions to its postretirement plans based on actual benefit payments. At December 31, 2018 , future estimated benefit payments are as follows: (in thousands) Postretirement Plans 2019 $ 1,399 2020 $ 1,273 2021 $ 1,083 2022 $ 1,015 2023 $ 856 2024–2028 $ 2,308 The total (benefit) cost arising from the Company’s other postretirement plans consists of the following components: Postretirement Plans Year Ended December 31 (in thousands) 2018 2017 2016 Service cost $ 892 $ 1,028 $ 1,386 Interest cost 620 779 1,230 Amortization of prior service credit (1,408 ) (148 ) (335 ) Recognized actuarial gain (3,783 ) (3,891 ) (1,502 ) Net Periodic (Benefit) Cost for the Year (3,679 ) (2,232 ) 779 Curtailment (3,380 ) — — Total (Benefit) Cost for the Year $ (7,059 ) $ (2,232 ) $ 779 Other Changes in Benefit Obligations Recognized in Other Comprehensive Income Current year actuarial gain $ (2,519 ) $ (2,830 ) $ (14,984 ) Current year prior service credit (12,473 ) — — Amortization of prior service credit 1,408 148 335 Recognized actuarial gain 3,783 3,891 1,502 Curtailment and settlement 3,380 — — Total Recognized in Other Comprehensive Income (Before Tax Effects) $ (6,421 ) $ 1,209 $ (13,147 ) Total Recognized in (Benefit) Cost and Other Comprehensive Income (Before Tax Effects) $ (13,480 ) $ (1,023 ) $ (12,368 ) The costs for the Company’s postretirement plans are actuarially determined. As a result of the changes to the postretirement plans, the Company remeasured the accumulated and projected benefit obligation of the postretirement plan as of October 31, 2018. The remeasurement changed the discount rate from 3.11% for the period January 1 through October 31, 2018 to 4.04% for the period November 1 to December 31, 2018. The discount rates utilized to determine periodic cost for the years ended December 31, 2017 and 2016 , were 3.31% and 3.45% , respectively. AOCI included the following components of unrecognized net periodic benefit for the postretirement plans: As of December 31 (in thousands) 2018 2017 Unrecognized actuarial gain $ (22,861 ) $ (24,125 ) Unrecognized prior service credit (7,863 ) (178 ) Gross Amount (30,724 ) (24,303 ) Deferred tax liability 8,295 6,561 Net Amount $ (22,429 ) $ (17,742 ) Multiemployer Pension Plans . In 2018 , 2017 and 2016 , the Company contributed to one multiemployer defined benefit pension plan under the terms of a collective-bargaining agreement that covered certain union-represented employees. The Company’s total contributions to the multiemployer pension plan amounted to $0.1 million in each year for 2018 , 2017 and 2016 . Savings Plans. The Company recorded expense associated with retirement benefits provided under incentive savings plans (primarily 401(k) plans) of approximately $8.6 million in 2018 and $7.5 million in 2017 and 2016 . |
Other Non-Operating Income (Exp
Other Non-Operating Income (Expense) | 12 Months Ended |
Dec. 31, 2018 | |
Other Nonoperating Income (Expense) [Abstract] | |
Other Non-Operating Income (Expense) | OTHER NON-OPERATING INCOME (EXPENSE) A summary of non-operating income (expense) is as follows: Year Ended December 31 (in thousands) 2018 2017 2016 Loss on guarantor obligations $ (17,518 ) $ — $ — Net gain on cost method investments 11,663 — — Net gain (loss) on sales of businesses 8,157 (569 ) 18,931 Foreign currency (loss) gain, net (3,844 ) 3,310 (39,890 ) Gain on sale of cost method investments 2,845 16 794 Impairment of cost method investments (2,697 ) (200 ) (29,365 ) Net gain on sale of property, plant and equipment 2,539 — 34,072 Gain on formation of a joint venture — — 3,232 Net losses on sales or write-down of marketable equity securities — — (1,791 ) Other, net 958 1,684 1,375 Total Other Non-Operating Income (Expense) $ 2,103 $ 4,241 $ (12,642 ) In 2018 , the Company recorded a $17.5 million loss in guarantor lease obligations in connection with the sale of the KHE Campuses business. In the third quarter of 2018 , the Company recorded an $8.5 million gain resulting from observable price changes in the fair value of equity securities accounted for under the cost method. In the fourth quarter of 2018, an additional $3.2 million gain was recorded. In 2018 , the Company recorded an $8.2 million gain on the sale of three businesses in the education division, including a gain of $4.3 million on the Kaplan University transaction and $1.9 million in contingent consideration gains related to the sale of a business (see Note 3). In the third quarter of 2016, the Company recorded an impairment of $15.0 million to the preferred equity interest in a vocational school company. In the fourth quarter of 2016, an additional $12.0 million impairment was recorded. In the second quarter of 2016, the Company sold the remaining portion of the Robinson Terminal real estate retained from the sale of the Publishing Subsidiaries, for a gain of $34.1 million . In June 2016, GHG contributed assets to a joint venture entered into with a Michigan hospital in exchange for a 40% equity interest and other assets, resulting in a $3.2 million gain (see Note 3). 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. In the first quarter of 2016, Kaplan sold Colloquy, which was part of Kaplan corporate and other, for a gain of $18.9 million . |
Accumulated Other Comprehensive
Accumulated Other Comprehensive Income (Loss) | 12 Months Ended |
Dec. 31, 2018 | |
Accumulated Other Comprehensive Income (Loss), Net of Tax [Abstract] | |
Accumulated Other Comprehensive Income (Loss) | ACCUMULATED OTHER COMPREHENSIVE INCOME (LOSS) The other comprehensive (loss) income consists of the following components: Year Ended December 31, 2018 Before-Tax Income After-Tax (in thousands) Amount Tax Amount Foreign currency translation adjustments: Translation adjustments arising during the year $ (35,584 ) $ — $ (35,584 ) Pension and other postretirement plans: Actuarial loss (101,013 ) 27,273 (73,740 ) Prior service credit 4,262 (1,151 ) 3,111 Amortization of net actuarial gain included in net income (11,349 ) 3,064 (8,285 ) Amortization of net prior service credit included in net income (947 ) 256 (691 ) Curtailments and settlements included in net income (30,267 ) 8,172 (22,095 ) (139,314 ) 37,614 (101,700 ) Cash flow hedge: Gain for the year 551 (104 ) 447 Other Comprehensive Loss $ (174,347 ) $ 37,510 $ (136,837 ) Year Ended December 31, 2017 Before-Tax Income After-Tax (in thousands) Amount Tax Amount Foreign currency translation adjustments: Translation adjustments arising during the year $ 33,175 $ — $ 33,175 Adjustment for sale of a business with foreign operations 137 — 137 33,312 — 33,312 Unrealized gains on available-for-sale securities: Unrealized gains for the year 112,086 (44,834 ) 67,252 Pension and other postretirement plans: Actuarial gain 179,674 (48,511 ) 131,163 Prior service cost (75 ) 20 (55 ) Amortization of net actuarial gain included in net income (6,527 ) 2,612 (3,915 ) Amortization of net prior service cost included in net income 477 (191 ) 286 173,549 (46,070 ) 127,479 Cash flow hedge: Gain for the year 112 (19 ) 93 Other Comprehensive Income $ 319,059 $ (90,923 ) $ 228,136 Year Ended December 31, 2016 Before-Tax Income After-Tax (in thousands) Amount Tax Amount Foreign currency translation adjustments: Translation adjustments arising during the year $ (22,149 ) $ — $ (22,149 ) Unrealized gains on available-for-sale securities: Unrealized gains for the year 55,507 (22,203 ) 33,304 Reclassification adjustment for realization of loss on sale of available-for-sale securities included in net income 1,879 (752 ) 1,127 57,386 (22,955 ) 34,431 Pension and other postretirement plans: Actuarial loss (133,915 ) 53,566 (80,349 ) Amortization of net actuarial loss included in net income 1,157 (463 ) 694 Amortization of net prior service cost included in net income 419 (167 ) 252 Curtailments and settlements included in net income (17,993 ) 7,197 (10,796 ) (150,332 ) 60,133 (90,199 ) Cash flow hedge: Loss for the year (334 ) 57 (277 ) Other Comprehensive Loss $ (115,429 ) $ 37,235 $ (78,194 ) The accumulated balances related to each component of other comprehensive income (loss) 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 As of December 31, 2016 $ (26,998 ) $ 92,931 $ 170,830 $ (277 ) $ 236,486 Other comprehensive income (loss) before reclassifications 33,175 67,252 131,108 (29 ) 231,506 Net amount reclassified from accumulated other comprehensive income 137 — (3,629 ) 122 (3,370 ) Net other comprehensive income 33,312 67,252 127,479 93 228,136 Reclassification of stranded tax effects to retained earnings as a result of tax reform — 34,706 36,227 — 70,933 As of December 31, 2017 6,314 194,889 334,536 (184 ) 535,555 Reclassification of unrealized gains on available-for-sale securities to retained earnings as a result of adoption of new guidance — (194,889 ) — — (194,889 ) Other comprehensive (loss) income before reclassifications (35,584 ) — (70,629 ) 579 (105,634 ) Net amount reclassified from accumulated other comprehensive income — — (31,071 ) (132 ) (31,203 ) Net other comprehensive (loss) income (35,584 ) — (101,700 ) 447 (136,837 ) As of December 31, 2018 $ (29,270 ) $ — $ 232,836 $ 263 $ 203,829 The amounts and line items of reclassifications out of Accumulated Other Comprehensive Income are as follows: Year Ended December 31 Affected Line Item in the Consolidated Statements of Operations (in thousands) 2018 2017 2016 Foreign Currency Translation Adjustments: Adjustment for sales of businesses with foreign operations $ — $ 137 $ — Other income (expense), net Unrealized Gains on Available-for-Sale Securities: Realized loss for the year — — 1,879 Other income (expense), net — — (752 ) Provision for (benefit from) income taxes — — 1,127 Net of tax Pension and Other Postretirement Plans: Amortization of net actuarial (gain) loss (11,349 ) (6,527 ) 1,157 (1) Amortization of net prior service (credit) cost (947 ) 477 419 (1) Curtailment and settlement gains (30,267 ) — (17,993 ) (1) (42,563 ) (6,050 ) (16,417 ) Before tax 11,492 2,421 6,567 Provision for (benefit from) income taxes (31,071 ) (3,629 ) (9,850 ) Net of tax Cash Flow Hedge (163 ) 152 16 Interest expense 31 (30 ) (3 ) Provision for (benefit from) income taxes (132 ) 122 13 Net of tax Total reclassification for the year $ (31,203 ) $ (3,370 ) $ (8,710 ) Net of tax ___________ _ (1) These accumulated other comprehensive income components are included in the computation of net periodic pension and postretirement plan cost (see Note 14) and are included in non-operating pension and postretirement benefit income in the Company’s Consolidated Statements of Operations. |
Leases and Other Commitments
Leases and Other Commitments | 12 Months Ended |
Dec. 31, 2018 | |
Leases And Other Commitments [Abstract] | |
Leases and Other Commitments | LEASES AND OTHER COMMITMENTS The Company leases real property under operating agreements. Many of the leases contain renewal options and escalation clauses that require payments of additional rent to the extent of increases in the related operating costs. At December 31, 2018 , future minimum rental payments under noncancelable operating leases approximate the following: (in thousands) 2019 $ 101,009 2020 84,945 2021 72,031 2022 53,709 2023 47,091 Thereafter 115,948 $ 474,733 Minimum payments have not been reduced by minimum sublease rentals of $66.0 million due in the future under noncancelable subleases. Rent expense under operating leases was approximately $83.4 million , $81.1 million and $86.9 million in 2018 , 2017 and 2016 , respectively. Sublease income was approximately $15.6 million , $14.8 million and $14.3 million in 2018 , 2017 and 2016 , respectively. The Company’s broadcast subsidiaries are parties to certain agreements that commit them to purchase programming to be produced in future years. At December 31, 2018 , such commitments amounted to approximately $16.1 million . If such programs are not produced, the Company’s commitment would expire without obligation. |
Contingencies
Contingencies | 12 Months Ended |
Dec. 31, 2018 | |
Commitments and Contingencies Disclosure [Abstract] | |
Contingencies | CONTINGENCIES Litigation, Legal and Other Matters . The Company and its subsidiaries are subject to complaints and administrative proceedings and are defendants in various civil lawsuits that have arisen in the ordinary course of their businesses, including contract disputes; actions alleging negligence, libel, defamation, invasion of privacy; trademark, copyright and patent infringement; U.S. False Claims Act (False Claims Act) violations; violations of employment laws and applicable wage and hour laws; and statutory or common law claims involving current and former students and employees. 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. However, based on currently available information, management believes it is reasonably possible that future losses from existing and threatened legal, regulatory and other proceedings in excess of the amounts recorded could reach approximately $45 million . On February 6, 2008, a purported class-action lawsuit was filed in the U.S. District Court for the Central District of California by purchasers of BAR/BRI bar review courses, from July 2006 onward, alleging antitrust claims against Kaplan and West Publishing Corporation, BAR/BRI’s former owner. On April 10, 2008, the court granted defendants’ motion to dismiss, a decision that was reversed by the Ninth Circuit Court of Appeals on November 7, 2011. The Ninth Circuit also referred the matter to a mediator for the purpose of exploring a settlement. In the fourth quarter of 2012, the parties reached a comprehensive agreement to settle the matter. The settlement was approved by the District Court in September 2013. In the fourth quarter of 2017, the Ninth Circuit remanded to the District Court, which, once again, set attorneys’ fees on January 11, 2018. Distribution of settlement funds was made in December 2018 and the claims administration process has been completed. During 2014, certain Kaplan subsidiaries were subject to 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 remaining case is captioned United States of America ex rel. Carlos Urquilla-Diaz et al. v. Kaplan University et al. (unsealed March 25, 2008). 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 Circuit. Arguments on both appeals were heard on February 3, 2015. On March 11, 2015, the appellate court issued a decision affirming the lower court’s dismissal of all of Gillespie’s claims. The appellate court also dismissed three of the four Diaz claims, but reversed and remanded on Diaz’s claim that incentive compensation for admissions representatives was improperly based solely on enrollment counts. Kaplan filed an answer to Diaz’s amended complaint on September 11, 2015. Kaplan filed a motion to dismiss Diaz’s claims, and a hearing was held on December 17, 2015. On March 24, 2016, the Court denied the motion to dismiss. Discovery in the case closed in January 2017. Kaplan filed a motion for summary judgment on February 21, 2017. Summary judgment was granted in full and entered on July 13, 2017. Diaz filed a notice of appeal in September 2017 and filed his initial brief. Kaplan filed a response brief in the third quarter of 2018. The matter is not likely to be decided until mid-2019. On October 19, 2018, a lawsuit was filed against KHE and other unrelated parties in El Paso, TX, County District Court alleging liability for default on a real property lease by Education Corporation of America. On November 19, 2018, this matter was removed to the U.S. District Court for the Western District of Texas. KHE’s responsive pleading was filed in January 2019 . On September 3, 2015, Kaplan sold to ECA substantially all of the assets of KHE nationally accredited on-ground Title IV eligible schools (KHE Campuses). The transaction included the transfer of certain real estate leases that were guaranteed by Kaplan. As part of the transaction, Kaplan retained liability for, among other things, obligations arising under certain lease guarantees. ECA is currently in receivership and has terminated all of its higher education operations other than the New England College of Business (NECB). The receiver has repudiated all of ECA’s real estate leases not connected to NECB. Although ECA is required to indemnify Kaplan for any amounts Kaplan must pay due to ECA’s failure to fulfill its obligations under real estate leases guaranteed by Kaplan, ECA’s financial situation and the existence of secured and unsecured creditors make it unlikely that Kaplan will recover from ECA. In the second half of 2018, the Company recorded an estimated $17.5 million in losses on guarantor lease obligations in connection with this transaction in other non-operating expense. On March 28, 2016, a class-action lawsuit was filed in the U.S. District Court for the Northern District of Illinois by Erin Fries, a physical therapist formerly employed by Residential, against Residential Home Health, LLC, Residential Home Health Illinois, LLC, and David Curtis. The complaint alleges violations of the Fair Labor Standards Act and the Illinois minimum wage law. The complaint seeks damages, attorney’s fees and costs. At this time, the Company cannot predict the outcome of this matter. In August 2017, the Pennsylvania Department of Health cited Celtic Healthcare of Westmoreland, LLC for being out of compliance with four conditions of the Medicare Conditions of Participation between August 7, 2017, and September 6, 2017. Celtic Healthcare of Westmoreland, LLC d/b/a Allegheny Health Network Healthcare Home Home Health (AHN H H Home Health) is a wholly owned subsidiary of a joint venture between West Penn Allegheny Health System, Inc. and Celtic Healthcare, Inc. In light of this 31-day period of non-compliance, the Department of Health issued a provisional license for AHN H H Home Health. Following a re-survey investigation by the Pennsylvania Department of Health, on January 12, 2018, the Department of Health removed the provisional license assigned to AHN H H Home Health and restored its unrestricted license. The Pennsylvania Department of Health will alert the Centers for Medicare and Medicaid Services (CMS) about this matter. CMS has the authority to impose civil monetary penalties of up to $10,000 per day or per instance for non-compliance. At this time, the Company cannot predict the outcome of this matter. Her Majesty’s Revenue and Customs (HMRC), a department of the U.K. government responsible for the collection of taxes, has raised assessments against the Kaplan U.K. Pathways business for Value Added Tax (VAT) relating to 2017 and earlier years, which have been paid by Kaplan. In September 2017, in a case captioned Kaplan International Colleges UK Limited v. The Commissioners for Her Majesty’s Revenue and Customs , Kaplan challenged these assessments. The Company believes it has met all requirements under U.K. VAT law and expects to recover the £15.4 million receivable related to the assessments and subsequent payments that have been paid. Following a hearing held in January 2019, before the First Tier Tax Tribunal, all issues related to EU law in the case were referred to the Court of Justice of the European Union. If the Company does not prevail in this case, a pre-tax charge of £15.4 million will be recorded to operating expense in the Company’s statement of operations. In March 2018, HMRC issued new VAT guidance indicating a change of policy in relation to certain aspects of a cost sharing exemption that could impact the U.K. Pathways business adversely if this guidance were to become law. As of December 31, 2018, this guidance had not yet been incorporated into U.K. law. If Kaplan is not successful in preserving a valid exemption under U.K. VAT law, the U.K. Pathways business would incur additional VAT expense in the future. In a separate matter, there is presently a legal case awaiting judgment at the Supreme Court in the U.K. that may impact U.K. Pathways’ ability to receive the benefit of an exemption from charging its students VAT on tuition fees. The case may reverse or amend existing law and guidance that permits private providers to qualify as a “college of a university” and therefore, receive the benefit of an exemption from charging its students VAT on tuition fees. If the case restricts which businesses are capable of constituting “colleges of a university” and entitled to exemption, KI Pathways Colleges’ financial results may be adversely impacted if they are not able to meet any new requirements. KHE Regulatory Environment. KHE no longer owns or operates KU or any other institution participating in student financial aid programs that have been created under Title IV of the U.S. Federal Higher Education Act of 1965 (Higher Education Act), as amended (Title IV). KHE is a service provider to Purdue Global and other Title IV participating institutions. As a service provider under the U.S. Department of Education (ED) regulations, KHE is required to comply with certain laws and regulations, including applicable statutory provisions of Title IV. KHE also provides financial aid services to Purdue Global, and as such, meets the definition of a “third-party servicer” contained in the Title IV regulations. By virtue of being a third-party servicer, KHE is also subject to applicable statutory provisions of Title IV and ED regulations that, among other things, require KHE to be jointly and severally liable with Purdue Global to the ED for any violation by Purdue Global of any Title IV statute or ED regulation or requirement. Pursuant to ED requirements, Purdue is responsible for any liability arising from the operation of the institution; however, pursuant to the agreement to transfer KU, KHE agreed to indemnify Purdue for certain pre-closing liabilities. ED Program Reviews. The ED has undertaken program reviews at various KHE locations. On February 23, 2015, the ED began a program review assessing KU’s administration of its Title IV and Higher Education Act programs during the 2013-2014 and 2014-2015 award years. In 2018, Kaplan contributed the institutional assets and operations of KU to Purdue Global, and the university became Purdue Global, under the ownership and control of Purdue University. However, Kaplan retains liability for any financial obligations the ED might impose under this program review and that are the result of actions taken during the time that Kaplan owned the institution. On September 28, 2018, the ED issued a Preliminary Program Report (Preliminary Report). This Preliminary Report is not final, and the ED may change the findings in the final report. None of the initial findings in the Preliminary Report carries material financial liability. Although the program review technically covers only the 2013–2015 award years, the ED included a review of the treatment of student financial aid refunds for students who withdrew from a program prior to completion in 2017–2018. KHE cannot predict the outcome of this review, when it will be completed, whether any final findings of non-compliance with financial aid program or other requirements will impact KHE’s operations, or what liability or other limitations the ED might place on KHE or Purdue Global as a result of this review. There are also two open program reviews at campuses that were part of the KHE Campuses business prior to its sale in 2015 to ECA. The ED’s final reports on the program reviews at former KHE Broomall, PA, and Pittsburgh, PA, locations are pending. KHE retains responsibility for any financial obligations resulting from these program reviews. 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. |
Business Segments
Business Segments | 12 Months Ended |
Dec. 31, 2018 | |
Segment Reporting [Abstract] | |
Business Segments | BUSINESS SEGMENTS Basis of Presentation. The Company’s organizational structure is based on a number of factors that management uses to evaluate, view and run its business operations, which include, but are not limited to, customers, the nature of products and services and use of resources. The business segments disclosed in the Consolidated Financial Statements are based on this organizational structure and information reviewed by the Company’s management to evaluate the business segment results. The Company has six reportable segments: Kaplan International, KHE, KTP, Professional (U.S.), television broadcasting and healthcare. The Company evaluates segment performance based on operating income before amortization of intangible assets and impairment of goodwill and other long-lived assets. The accounting policies at the segments are the same as described in Note 2. In computing income from operations by segment, the effects of equity in earnings (losses) of affiliates, interest income, interest expense, non-operating pension and postretirement benefit income, other non-operating income and expense items and income taxes are not included. Intersegment sales are not material. Identifiable assets by segment are those assets used in the Company’s operations in each business segment. The Prepaid Pension cost is not included in identifiable assets by segment. Investments in marketable equity securities are discussed in Note 4. Education. Education products and services are provided by Kaplan, Inc. Kaplan International includes professional training and postsecondary education businesses largely outside the United States, as well as English-language programs. Prior to the KU Transaction closing on March 22, 2018, KHE included Kaplan’s domestic postsecondary education business, made up of fixed-facility colleges and online postsecondary and career programs. Following the KU Transaction closing, KHE includes the results as a service provider to higher education institutions. KTP includes Kaplan’s standardized test preparation and new economy skills training programs. Professional (U.S.) includes the domestic professional training and other continuing education businesses. In recent years, Kaplan has formulated and implemented restructuring plans at its various businesses. There were no significant restructuring costs in 2018. Across all Kaplan businesses, restructuring costs of $9.1 million and $11.9 million were recorded in 2017 and 2016 , respectively, as follows: Year Ended December 31 (in thousands) 2017 2016 Accelerated depreciation $ 339 $ 1,815 Lease obligation losses — 2,694 Severance 6,099 5,902 Other 2,627 1,441 $ 9,065 $ 11,852 Kaplan International incurred restructuring costs of $2.9 million and $4.7 million in 2017 and 2016 , respectively. These restructuring costs were largely in the U.K. and Australia and included severance charges, lease obligations, and accelerated depreciation. KHE incurred restructuring costs of $1.4 million and $7.1 million in 2017 and 2016 , respectively, primarily from severance, lease obligation losses and accelerated depreciation. KTP incurred restructuring costs of $4.3 million in 2017 primarily from severance. Total accrued restructuring costs at Kaplan were $4.6 million and $8.5 million at the end of 2018 and 2017 , respectively. Television Broadcasting. Television broadcasting operations are conducted through seven television stations serving the Detroit, Houston, San Antonio, Orlando, Jacksonville and Roanoke television markets. All stations are network-affiliated (except for WJXT in Jacksonville), with revenues derived primarily from sales of advertising time. In addition, the stations generate revenue from retransmission consent agreements for the right to carry their signals. Healthcare. Graham Healthcare Group provides home health and hospice services. Other Businesses. Other businesses includes the following: • Hoover, a Thomson, GA-based supplier of pressure impregnated kiln-dried lumber and plywood products for fire retardant and preservative applications (acquired in April 2017); Dekko, a Garrett, IN-based manufacturer of electrical workspace solutions, architectural lighting, and electrical components and assemblies; Joyce/Dayton Corp., a Dayton, OH-based manufacturer of screw jacks and other linear motion systems; and Forney, a global supplier of products and systems that control and monitor combustion processes in electric utility and industrial applications; • SocialCode, a marketing and insights company that manages digital advertising for leading brands; The Slate Group and Foreign Policy Group, which publish online and print magazines and websites; and three investment stage businesses, Panoply, Pinna and CyberVista. Corporate Office. Corporate office includes the expenses of the Company’s corporate office, a net pension credit and certain continuing obligations related to prior business dispositions. Geographical Information. The Company’s non-U.S. revenues in 2018 , 2017 and 2016 totaled approximately $657 million , $637 million and $624 million , respectively, primarily from Kaplan’s operations outside the U.S. Additionally, revenues in 2018 , 2017 and 2016 totaled approximately $345 million , $320 million , and $312 million , respectively, from Kaplan’s operations in the U.K. The Company’s long-lived assets in non-U.S. countries (excluding goodwill and other intangible assets), totaled approximately $124 million and $89 million at December 31, 2018 and 2017 , respectively. Company information broken down by operating segment and education division: Year Ended December 31 (in thousands) 2018 2017 2016 Operating Revenues Education $ 1,451,015 $ 1,516,776 $ 1,598,461 Television broadcasting 505,549 409,916 409,718 Healthcare 149,275 154,202 146,962 Other businesses 590,227 511,003 326,888 Corporate office — — — Intersegment elimination (100 ) (51 ) (139 ) $ 2,695,966 $ 2,591,846 $ 2,481,890 Income (Loss) from Operations Education $ 97,136 $ 77,687 $ 95,321 Television broadcasting 210,533 139,258 202,863 Healthcare (8,401 ) (2,569 ) 2,799 Other businesses (246 ) (19,263 ) (24,901 ) Corporate office (52,861 ) (58,710 ) (53,213 ) $ 246,161 $ 136,403 $ 222,869 Equity in Earnings (Losses) of Affiliates, Net 14,473 (3,249 ) (7,937 ) Interest Expense, Net (32,549 ) (27,305 ) (32,297 ) Debt Extinguishment Costs (11,378 ) — — Non-Operating Pension and Postretirement Benefit Income, Net 120,541 72,699 80,665 Loss on Marketable Equity Securities, net (15,843 ) — — Other Income (Expense), Net 2,103 4,241 (12,642 ) Income Before Income Taxes $ 323,508 $ 182,789 $ 250,658 Depreciation of Property, Plant and Equipment Education $ 28,099 $ 32,906 $ 41,187 Television broadcasting 13,204 12,179 9,942 Healthcare 2,577 4,583 2,805 Other businesses 11,835 11,723 9,570 Corporate office 1,007 1,118 1,116 $ 56,722 $ 62,509 $ 64,620 Amortization of Intangible Assets and Impairment of Goodwill and Other Long-Lived Assets Education $ 9,362 $ 5,162 $ 7,516 Television broadcasting 5,632 6,349 251 Healthcare 14,855 7,905 6,701 Other businesses 25,674 31,385 13,806 Corporate office — — — $ 55,523 $ 50,801 $ 28,274 Pension Service Cost Education $ 8,753 $ 9,720 $ 11,803 Television broadcasting 2,188 1,942 1,714 Healthcare 573 665 — Other businesses 1,373 1,125 1,118 Corporate office 5,334 5,235 5,826 $ 18,221 $ 18,687 $ 20,461 Capital Expenditures Education $ 54,159 $ 27,520 $ 26,497 Television broadcasting 27,013 16,802 27,453 Healthcare 1,741 2,987 2,954 Other businesses 15,154 9,771 13,093 Corporate office — — 715 $ 98,067 $ 57,080 $ 70,712 Asset information for the Company’s business segments is as follows: As of December 31 (in thousands) 2018 2017 Identifiable Assets Education $ 1,568,747 $ 1,592,097 Television broadcasting 452,853 455,884 Healthcare 108,596 129,856 Other businesses 827,113 855,399 Corporate office 162,971 182,905 $ 3,120,280 $ 3,216,141 Investments in Marketable Equity Securities 496,390 536,315 Investments in Affiliates 143,813 128,590 Prepaid Pension Cost 1,003,558 1,056,777 Total Assets $ 4,764,041 $ 4,937,823 The Company’s education division comprises the following operating segments: Year Ended December 31 (in thousands) 2018 2017 2016 Operating Revenues Kaplan international $ 719,982 $ 697,999 $ 696,362 Higher education 342,085 431,425 501,784 Test preparation 256,102 273,298 286,556 Professional (U.S.) 134,187 115,839 115,263 Kaplan corporate and other 1,142 294 214 Intersegment elimination (2,483 ) (2,079 ) (1,718 ) $ 1,451,015 $ 1,516,776 $ 1,598,461 Income (Loss) from Operations Kaplan international $ 70,315 $ 51,623 $ 48,398 Higher education 15,217 16,719 39,196 Test preparation 19,096 11,507 9,599 Professional (U.S.) 28,608 27,558 27,436 Kaplan corporate and other (36,064 ) (29,863 ) (29,279 ) Intersegment elimination (36 ) 143 (29 ) $ 97,136 $ 77,687 $ 95,321 Depreciation of Property, Plant and Equipment Kaplan international $ 15,755 $ 14,892 $ 17,523 Higher education 4,826 9,117 13,816 Test preparation 3,941 5,286 6,287 Professional (U.S.) 3,096 3,041 3,006 Kaplan corporate and other 481 570 555 $ 28,099 $ 32,906 $ 41,187 Amortization of Intangible Assets $ 9,362 $ 5,162 $ 7,516 Pension Service Cost Kaplan international $ 298 $ 264 $ 268 Higher education 4,310 5,269 6,544 Test preparation 2,611 2,755 3,072 Professional (U.S.) 1,162 913 1,076 Kaplan corporate and other 372 519 843 $ 8,753 $ 9,720 $ 11,803 Capital Expenditures Kaplan international $ 44,469 $ 21,667 $ 16,252 Higher education 4,045 2,158 3,140 Test preparation 681 1,038 4,672 Professional (U.S.) 4,845 2,475 2,224 Kaplan corporate and other 119 182 209 $ 54,159 $ 27,520 $ 26,497 Asset information for the Company’s education division is as follows: As of December 31 (in thousands) 2018 2017 Identifiable Assets Kaplan international $ 1,101,040 $ 1,115,919 Higher education 126,752 231,986 Test preparation 145,308 130,938 Professional (U.S.) 166,916 91,630 Kaplan corporate and other 28,731 21,624 $ 1,568,747 $ 1,592,097 |
Summary of Quarterly Operating
Summary of Quarterly Operating Results and Comprehensive Income (Loss) (Unaudited) | 12 Months Ended |
Dec. 31, 2018 | |
Quarterly Financial Information Disclosure [Abstract] | |
Summary of Quarterly Operating Results and Comprehensive Income (Loss) (Unaudited) | SUMMARY OF QUARTERLY OPERATING RESULTS AND COMPREHENSIVE INCOME (LOSS) (UNAUDITED) Quarterly results of operations and comprehensive income (loss) for the year ended December 31, 2018 , is as follows: (in thousands, except per share amounts) First Quarter Second Quarter Third Quarter Fourth Quarter Operating Revenues $ 659,436 $ 672,677 $ 674,766 $ 689,087 Operating Costs and Expenses Operating 365,151 440,655 448,920 432,706 Selling, general and administrative 225,045 141,378 131,081 152,624 Depreciation of property, plant and equipment 14,642 13,619 13,648 14,813 Amortization of intangible assets 10,384 11,399 12,269 13,362 Impairment of goodwill and other long-lived assets — — 8,109 — 615,222 607,051 614,027 613,505 Income from Operations 44,214 65,626 60,739 75,582 Equity in earnings of affiliates, net 2,579 931 9,537 1,426 Interest income 1,372 1,901 611 1,469 Interest expense (8,071 ) (17,165 ) (6,135 ) (6,531 ) Debt extinguishment costs — (11,378 ) — — Non-operating pension and postretirement benefit income, net 21,386 23,041 22,214 53,900 (Loss) gain on marketable equity securities, net (14,102 ) (2,554 ) 44,962 (44,149 ) Other income (expense), net 9,187 2,333 3,142 (12,559 ) Income Before Income Taxes 56,565 62,735 135,070 69,138 Provision for Income Taxes 13,600 16,100 10,000 12,400 Net Income 42,965 46,635 125,070 56,738 Net Income Attributable to Noncontrolling Interests (74 ) (69 ) (6 ) (53 ) Net Income Attributable to Graham Holdings Company Common Stockholders $ 42,891 $ 46,566 $ 125,064 $ 56,685 Quarterly Comprehensive Income (Loss) $ 53,703 $ 13,345 $ 119,862 $ (52,541 ) Per Share Information Attributable to Graham Holdings Company Common Stockholders Basic net income per common share $ 7.84 $ 8.69 $ 23.43 $ 10.69 Basic average number of common shares outstanding 5,436 5,325 5,302 5,270 Diluted net income per common share $ 7.78 $ 8.63 $ 23.28 $ 10.61 Diluted average number of common shares outstanding 5,473 5,362 5,337 5,309 The sum of the four quarters may not necessarily be equal to the annual amounts reported in the Consolidated Statements of Operations due to rounding. Quarterly results of operations and comprehensive income for the year ended December 31, 2017 , is as follows: (in thousands, except per share amounts) First Quarter Second Quarter Third Quarter Fourth Quarter Operating Revenues $ 582,717 $ 676,087 $ 657,225 $ 675,817 Operating Costs and Expenses Operating 325,687 381,747 374,987 371,922 Selling, general and administrative 225,289 208,973 228,051 225,477 Depreciation of property, plant and equipment 14,652 15,871 16,002 15,984 Amortization of intangible assets 6,836 10,531 10,923 12,897 Impairment of goodwill and other long-lived assets — 9,224 312 78 572,464 626,346 630,275 626,358 Income from Operations 10,253 49,741 26,950 49,459 Equity in earnings (losses) of affiliates, net 649 1,331 (532 ) (4,697 ) Interest income 1,363 1,173 861 3,184 Interest expense (8,129 ) (9,035 ) (8,619 ) (8,103 ) Non-operating pension and postretirement benefit income, net 18,801 18,620 17,621 17,657 Other income (expense), net 849 4,069 1,963 (2,640 ) Income Before Income Taxes 23,786 65,899 38,244 54,860 Provision for (Benefit From) Income Taxes 2,700 23,900 13,400 (159,700 ) Net Income 21,086 41,999 24,844 214,560 Net Income Attributable to Noncontrolling Interests — (3 ) (60 ) (382 ) Net Income Attributable to Graham Holdings Company Common Stockholders $ 21,086 $ 41,996 $ 24,784 $ 214,178 Quarterly Comprehensive Income $ 39,368 $ 59,135 $ 64,029 $ 367,648 Per Share Information Attributable to Graham Holdings Company Common Stockholders Basic net income per common share $ 3.77 $ 7.51 $ 4.45 $ 38.76 Basic average number of common shares outstanding 5,535 5,539 5,518 5,473 Diluted net income per common share $ 3.75 $ 7.46 $ 4.42 $ 38.52 Diluted average number of common shares outstanding 5,569 5,577 5,554 5,509 The sum of the four quarters may not necessarily be equal to the annual amounts reported in the Consolidated Statements of Operations due to rounding. In the fourth quarter of 2017, an unfavorable $2.8 million net out of period expense adjustment was included that related to prior periods from the third quarter of 2016 through the third quarter of 2017. 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 2017 and 2016 and related interim periods, based on its consideration of quantitative and qualitative factors. Quarterly impact from certain items in 2018 and 2017 (after-tax and diluted EPS amounts): First Quarter Second Quarter Third Quarter Fourth Quarter 2018 Intangible asset impairment charge of $5.8 million at the healthcare business $ (1.08 ) A $3.0 million reduction to operating expenses from property, plant, and equipment gains in connection with the spectrum repacking mandate of the FCC ($0.2 million, $0.6 million, $0.8 million and $1.4 million in the first, second, third and fourth quarters, respectively) $ 0.04 $ 0.11 $ 0.14 $ 0.26 Interest expense of $6.2 million related to the settlement of a mandatorily redeemable noncontrolling interest $ (1.14 ) Debt extinguishment costs of $8.6 million $ (1.60 ) A $22.2 million settlement gain related to a bulk lump sum pension offering and curtailment gain related to changes in the Company’s postretirement healthcare benefit plan $ 4.11 Losses, net, of $12.6 million on marketable equity securities ($10.7 million loss, $1.9 million loss, $33.6 million gain, and $33.6 million loss in the first, second, third and fourth quarters, respectively) $ (1.94 ) $ (0.36 ) $ 6.26 $ (6.28 ) Non-operating gain, net, of $5.7 million from sales, write-ups and impairments of cost method and equity method investments, and related to sales of land and businesses, including losses on guarantor lease obligations ($3.6 million gain, $1.8 million gain, $8.0 million gain, and $7.7 million loss in the first, second, third and fourth quarters, respectively) $ 0.65 $ 0.34 $ 1.48 $ (1.43 ) Gain of $1.8 million on the Kaplan University Transaction $ 0.33 Losses, net, of $2.9 million for non-operating foreign currency (losses) gains ($0.1 million gain, $1.7 million loss, $0.1 million loss, and $1.2 million loss in the first, second, third and fourth quarters, respectively) $ 0.02 $ (0.32 ) $ (0.02 ) $ (0.23 ) A nonrecurring discrete $17.8 million deferred state tax benefit related to the release of valuation allowances $ 3.31 Income tax benefit of $1.8 million related to stock compensation $ 0.33 2017 Charges of $6.3 million related to restructuring and non-operating Separation Incentive Program charges at the education division ($0.3 million, $0.4 million, $1.1 million and $4.5 million in the first, second, third and fourth quarters, respectively) $ (0.05 ) $ (0.06 ) $ (0.20 ) $ (0.81 ) Goodwill and long-lived assets impairment charges of $5.8 million at other businesses $ (1.03 ) Gains, net, of $2.1 million for non-operating foreign currency gains (losses) ($1.1 million gain, $2.2 million gain, $0.9 million gain and $2.1 million loss in the first, second, third and fourth quarters, respectively) $ 0.19 $ 0.39 $ 0.16 $ (0.37 ) Net deferred tax benefits of $177.5 million related to the Tax Act $ 31.68 Income tax benefit of $5.9 million related to stock compensation $ 1.06 |
Summary of Significant Accoun_2
Summary of Significant Accounting Policies (Policy) | 12 Months Ended |
Dec. 31, 2018 | |
Accounting Policies [Abstract] | |
Basis of Presentation and Principles of Consolidation | Basis of Presentation and Principles of Consolidation. The accompanying Consolidated Financial Statements have been prepared in accordance with generally accepted accounting principles (GAAP) in the United States and include the assets, liabilities, results of operations and cash flows of the Company and its majority-owned and controlled subsidiaries. All significant intercompany accounts and transactions have been eliminated in consolidation. |
Use of Estimates | Use of Estimates. The preparation of financial statements in conformity with GAAP requires management to make estimates and judgments that affect the amounts reported in the financial statements. 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. On an ongoing basis, the Company evaluates its estimates and assumptions. |
Business Combinations | Business Combinations. The purchase price of an acquisition is allocated to the assets acquired, including intangible assets, and liabilities assumed, based on their respective fair values at the acquisition date. Acquisition-related costs are expensed as incurred. The excess of the cost of an acquired entity over the net of the amounts assigned to the assets acquired and liabilities assumed is recognized as goodwill. The net assets and results of operations of an acquired entity are included in the Company’s Consolidated Financial Statements from the acquisition date. |
Cash and Cash Equivalents | Cash and Cash Equivalents. Cash and cash equivalents consist of cash on hand, short-term investments with original maturities of three months or less and investments in money market funds with weighted average maturities of three months or less. |
Restricted Cash | Restricted Cash. Restricted cash represents amounts required to be held by non-U.S. higher education institutions for prepaid tuition pursuant to foreign government regulations. These regulations stipulate that the Company has a fiduciary responsibility to segregate certain funds to ensure these funds are only used for the benefit of eligible students. |
Concentration of Credit Risk | Concentration of Credit Risk. Cash and cash equivalents are maintained with several financial institutions domestically and internationally. Deposits held with banks may exceed the amount of insurance provided on such deposits. Generally, these deposits may be redeemed upon demand and are maintained with financial institutions with investment-grade credit ratings. The Company routinely assesses the financial strength of significant customers, and this assessment, combined with the large number and geographical diversity of its customers, limits the Company’s concentration of risk with respect to trade accounts receivable. |
Allowance for Doubtful Accounts | Allowance for Doubtful Accounts. Accounts receivable have been reduced by an allowance for amounts that may be uncollectible in the future. This estimated allowance is based primarily on the aging category, historical collection experience and management’s evaluation of the financial condition of the customer. The Company generally considers an account past due or delinquent when a student or customer misses a scheduled payment. The Company writes off accounts receivable balances deemed uncollectible against the allowance for doubtful accounts following the passage of a certain period of time, or generally when the account is turned over for collection to an outside collection agency. |
Investments in Equity Securities | Investments in Equity Securities. The Company measures its investments in equity securities at fair value with changes in fair value recognized in earnings. The Company elected the measurement alternative to measure cost method investments that do not have readily determinable fair value at cost less impairment, adjusted by observable price changes with any fair value changes recognized in earnings. If the fair value of an equity security declines below its cost basis and the decline is considered other than temporary, the Company will record a write-down, which is included in earnings. The Company uses the average cost method to determine the basis of the securities sold. Prior to 2018, the Company’s investments in marketable equity securities were classified as available-for-sale and, therefore, were recorded at fair value in the Consolidated Financial Statements, with the change in fair value during the period excluded from earnings and recorded net of income taxes as a separate component of other comprehensive income. Additionally, the Company used the cost method of accounting for its minority investments in nonpublic companies where it did not have significant influence over the operations and management of the investee. Investments were recorded at the lower of cost or fair value as estimated by management. Charges recorded to write down cost method investments to their estimated fair value and gross realized gains or losses upon the sale of cost method investments were included in other income (expense), net, in the Company’s Consolidated Statements of Operations. Fair value estimates were based on a review of the investees’ product development activities, historical financial results and projected discounted cash flows. The Company includes cost method investments in deferred charges and other assets in the Company’s Consolidated Balance Sheets. |
Fair Value Measurements | Fair Value Measurements. Fair value measurements are determined based on the assumptions that a market participant would use in pricing an asset or liability based on a three-tiered hierarchy that draws a distinction between market participant assumptions based on (i) observable inputs, such as quoted prices in active markets (Level 1); (ii) inputs other than quoted prices in active markets that are observable either directly or indirectly (Level 2); and (iii) unobservable inputs that require the Company to use present value and other valuation techniques in the determination of fair value (Level 3). Financial assets and liabilities are classified in their entirety based on the lowest level of input that is significant to the fair value measure. The Company’s assessment of the significance of a particular input to the fair value measurements requires judgment and may affect the valuation of the assets and liabilities being measured and their placement within the fair value hierarchy. For assets that are measured using quoted prices in active markets, the total fair value is the published market price per unit multiplied by the number of units held, without consideration of transaction costs. Assets and liabilities that are measured using significant other observable inputs are primarily valued by reference to quoted prices of similar assets or liabilities in active markets, adjusted for any terms specific to that asset or liability. The Company measures certain assets—including goodwill; intangible assets; property, plant and equipment; cost and equity-method investments—at fair value on a nonrecurring basis when they are deemed to be impaired. The fair value of these assets is determined with valuation techniques using the best information available and may include quoted market prices, market comparables and discounted cash flow models. |
Fair Value of Financial Instruments | Fair Value of Financial Instruments. The carrying amounts reported in the Company’s Consolidated Financial Statements for cash and cash equivalents, restricted cash, accounts receivable, accounts payable and accrued liabilities, the current portion of deferred revenue and the current portion of debt approximate fair value because of the short-term nature of these financial instruments. The fair value of long-term debt is determined based on a number of observable inputs, including the current market activity of the Company’s publicly traded notes, trends in investor demands and market values of comparable publicly traded debt. The fair value of the interest rate hedge is determined based on a number of observable inputs, including time to maturity and market interest rates. |
Inventories and Contracts in Progress | Inventories and Contracts in Progress. Inventories and contracts in progress are stated at the lower of cost or net realizable values and are based on the first-in, first-out (FIFO) method. Inventory costs include direct material, direct and indirect labor, and applicable manufacturing overhead. The Company allocates manufacturing overhead based on normal production capacity and recognizes unabsorbed manufacturing costs in earnings. The provision for excess and obsolete inventory is based on management’s evaluation of inventories on hand relative to historical usage, estimated future usage and technological developments. |
Property, Plant and Equipment | Property, Plant and Equipment. Property, plant and equipment is recorded at cost and includes interest capitalized in connection with major long-term construction projects. Replacements and major improvements are capitalized; maintenance and repairs are expensed as incurred. Depreciation is calculated using the straight-line method over the estimated useful lives of the property, plant and equipment: 3 to 20 years for machinery and equipment; 20 to 50 years for buildings. The costs of leasehold improvements are amortized over the lesser of their useful lives or the terms of the respective leases. |
Evaluation of Long-Lived Assets | Evaluation of Long-Lived Assets. The recoverability of long-lived assets and finite-lived intangible assets is assessed whenever adverse events or changes in circumstances indicate that recorded values may not be recoverable. A long-lived asset is considered to not be recoverable when the undiscounted estimated future cash flows are less than the asset’s recorded value. An impairment charge is measured based on estimated fair market value, determined primarily using estimated future cash flows on a discounted basis. Losses on long-lived assets to be disposed of are determined in a similar manner, but the fair market value would be reduced for estimated costs to dispose. |
Goodwill and Other Intangible Assets | Goodwill and Other Intangible Assets. Goodwill is the excess of purchase price over the fair value of identified net assets of businesses acquired. The Company’s intangible assets with an indefinite life are principally from trade names and trademarks, and FCC licenses. Amortized intangible assets are primarily student and customer relationships and trade names and trademarks, with amortization periods up to 10 years. Costs associated with renewing or extending intangible assets are insignificant and expensed as incurred. The Company reviews goodwill and indefinite-lived intangible assets at least annually, as of November 30, for possible impairment. Goodwill and indefinite-lived intangible assets are reviewed for possible impairment between annual tests if an event occurs or circumstances change that would more likely than not reduce the fair value of the reporting unit or indefinite-lived intangible asset below its carrying value. The Company tests its goodwill at the reporting unit level, which is an operating segment or one level below an operating segment. The Company initially assesses qualitative factors to determine if it is necessary to perform the goodwill or indefinite-lived intangible asset quantitative impairment review. The Company reviews the goodwill and indefinite-lived assets for impairment using the quantitative process if, based on its assessment of the qualitative factors, it determines that it is more likely than not that the fair value of a reporting unit or indefinite-lived intangible asset is less than its carrying value, or if it decides to bypass the qualitative assessment. The Company reviews the carrying value of goodwill and indefinite-lived intangible assets utilizing a discounted cash flow model, and, where appropriate, a market value approach is also utilized to supplement the discounted cash flow model. The Company makes assumptions regarding estimated future cash flows, discount rates, long-term growth rates and market values to determine the estimated fair value of each reporting unit and indefinite-lived intangible asset. If these estimates or related assumptions change in the future, the Company may be required to record impairment charges. |
Investments in Affiliates | Investments in Affiliates. The Company uses the equity method of accounting for its investments in and earnings or losses of affiliates that it does not control, but over which it exerts significant influence. The Company considers whether the fair values of any of its equity method investments have declined below their carrying values whenever adverse events or changes in circumstances indicate that recorded values may not be recoverable. If the Company considered any such decline to be other than temporary (based on various factors, including historical financial results, product development activities and the overall health of the affiliate’s industry), a write-down would be recorded to estimated fair value. |
Revenue Recognition | Revenue Recognition. Prior to the adoption of the new revenue guidance on January 1, 2018, the Company recognized revenue when persuasive evidence of an arrangement existed, the fees were fixed or determinable, the product or service had been delivered and collectability was assured. The Company considered the terms of each arrangement to determine the appropriate accounting treatment. Subsequent to the adoption of the new guidance, the Company identifies a contract for revenue recognition when there is approval and commitment from both parties, the rights of the parties and payment terms are identified, the contract has commercial substance and the collectability of consideration is probable. The Company evaluates each contract to determine the number of distinct performance obligations in the contract, which requires the use of judgment. Education Revenue . Education revenue is primarily derived from postsecondary education, professional education and test preparation services provided both domestically and abroad. Generally, tuition and other fees are paid upfront and recorded in deferred revenue in advance of the date when education services are provided to the student. In some instances, installment billing is available to students, which reduces the amount of cash consideration received in advance of performing the service. The contractual terms and conditions associated with installment billing indicate that the student is liable for the total contract price; therefore, mitigating the Company’s exposure to losses associated with nonpayment. The Company determined the installment billing does not represent a significant financing component. Kaplan International . Kaplan International provides higher education, professional education, and test preparation services and materials to students primarily in the United Kingdom, Singapore, and Australia. Some Kaplan International contracts consist of one performance obligation that is a combination of indistinct promises to the student, while other Kaplan International contracts include multiple performance obligations as the promises in the contract are capable of being both distinct and distinct within the context of the contract. One Kaplan International business offers an option whereby students receive future services at a discount that is accounted for as a material right. The transaction price is stated in the contract and known at the time of contract inception; therefore, no variable consideration exists. Revenue is allocated to each performance obligation based on its standalone selling price. Any discounts within the contract are allocated across all performance obligations unless observable evidence exists that the discount relates to a specific performance obligation or obligations in the contract. Kaplan International generally determines standalone selling prices based on prices charged to students. Revenue is recognized ratably over the instruction period or access period for higher education, professional education and test preparation services. Kaplan International generally uses the time elapsed method, an input measure, as it best depicts the simultaneous consumption and delivery of these services. Course materials determined to be a separate performance obligation are recognized at the point in time when control transfers to the student, generally when the products are delivered to the student. Higher Education (KHE) . In the first quarter of 2018, KHE provided postsecondary education services to students through KU’s online programs and fixed-facility colleges. These contracts consisted either of one performance obligation that is a combination of distinct promises to a student, or two performance obligations if the student also enrolled in the Kaplan Tuition Cap, which established a maximum amount of tuition that KHE may charge students for higher education services. The Kaplan Tuition Cap was accounted for as a material right. The transaction price of a higher education contract was stated in the contract and known at the time of contract inception; therefore, no variable consideration existed. A portion of the transaction price was allocated to the material right, if applicable, based on the expected value method. Higher education services revenue was recognized ratably over the instruction period. The Company used the time elapsed method, an input measure, as it best depicts the simultaneous consumption and delivery of higher education services. On March 22, 2018, Kaplan contributed the institutional assets and operations of KU to Purdue University Global (see Note 3). Subsequent to the transaction, KHE provides non-academic operations support services to Purdue University Global pursuant to a Transition and Operations Support Agreement (TOSA). This contract has a 30 -year term and consists of one performance obligation, which represents a series of daily promises to provide support services to Purdue University Global. The transaction price is entirely made up of variable consideration related to the reimbursement of KHE support costs and the KHE fee. The TOSA outlines a payment structure, which dictates how cash will be distributed at the end of Purdue University Global’s fiscal year, which is the 30th of June. The collectability of the KHE support costs and KHE fee is entirely dependent on the availability of cash at the end of the fiscal year. This variable consideration is constrained based on fiscal year forecasts prepared for Purdue University Global. The forecasts are updated throughout the fiscal year until the uncertainty is ultimately resolved, which is at the end of each Purdue University Global fiscal year. As KHE’s performance obligation is made up of a series, the variable consideration is allocated to the distinct service period to which it relates, which is the Purdue University Global fiscal year. Support services revenue is recognized over time based on the expenses incurred to date and the percentage of expected reimbursement. KHE fee revenue is also recognized over time based on the amount of Purdue University Global revenue recognized to date and the percentage of fee expected to be collected for the fiscal year. The Company used these input measures as Purdue University Global simultaneously receives and consumes the benefits of the services provided by KHE. Kaplan Test Preparation (KTP) . KTP offers test preparation services and materials to students related to pre-college, graduate, health and bar review products. Generally KTP contracts include promises for test preparation services and course materials. As each promise is both capable of being distinct and distinct in the context of the contract, each promise is accounted for as a separate performance obligation. As the transaction price is stated in the contract and known at the time of contract inception, no variable consideration exists. Revenue is allocated to each performance obligation based on its standalone selling price. KTP generally determines standalone selling prices based on prices charged to students. Any discounts within the contract are allocated across all performance obligations unless observable evidence exists that the discount relates to a specific performance obligation or obligations in the contract. Test preparation services revenue is recognized ratably over the period of access. At KTP, an estimate of average access period is developed for each course, and this estimate is evaluated on an ongoing basis and adjusted as necessary. KTP generally uses the time elapsed method, an input measure, as it best depicts the simultaneous consumption and availability of access to test preparation services. Revenue associated with distinct course materials is recognized at the point in time when control transfers to the student, generally when the products are delivered to the student. KTP offers a guarantee on certain courses that gives students the ability to repeat a course if they are not satisfied with their exam score. The Company accounts for this guarantee as a separate performance obligation. Professional (U.S.): Professional (U.S.) provides professional training and exam preparation for professional certifications and licensures to students. Professional (U.S.) contracts include promises for professional education services and course materials. Generally, Professional (U.S.) revenue contracts consist of multiple performance obligations as each distinct promise is both capable of being distinct and distinct in the context of the contract. The transaction price is stated in the contract and known at the time of contract inception, therefore no variable consideration exists. Revenue is allocated to each performance obligation based on its standalone selling price. Professional (U.S.) generally determines standalone selling prices based on the prices charged to students. Any discounts within the contract are allocated across all performance obligations unless observable evidence exists that the discount relates to a specific performance obligation or obligations in the contract. Professional education services revenue is recognized ratably over the period of access. Professional (U.S.) generally uses the time elapsed method, an input measure, as it best depicts the simultaneous consumption and availability of access to professional education services. Revenue associated with distinct course materials is recognized at the point in time when control transfers to the student, generally when the products are delivered to the student. Television Broadcasting Revenue . Television broadcasting revenue at Graham Media Group (GMG) is primarily comprised of television and internet advertising revenue, and retransmission revenue. Television Advertising Revenue . GMG accounts for the series of advertisements included in television advertising contracts as one performance obligation and recognizes advertising revenue over time. The Company elected the right to invoice practical expedient, an output method, as GMG has the right to consideration that equals the value provided to the customer for advertisements delivered to date. As a result of the election to use the right to invoice practical expedient, GMG does not determine the transaction price or allocate any variable consideration at contract inception. Rather, GMG recognizes revenue commensurate with the amount to which GMG has the right to invoice the customer. Payment is typically received in arrears within 60 days of revenue recognition. Retransmission Revenue . Retransmission revenue represents compensation paid by cable, satellite and other multichannel video programming distributors (MVPDs) to retransmit GMG’s stations’ broadcasts in their designated market areas. The retransmission rights granted to MVPDs are accounted for as a license of functional intellectual property as the retransmitted broadcast provides significant standalone functionality. As such, each retransmission contract with an MVPD includes one performance obligation for each station’s retransmission license. GMG recognizes revenue using the usage-based royalty method, in which revenue is recognized in the month the broadcast is retransmitted based on the number of MVPD subscribers and the applicable per user rate identified in the retransmission contract. Payment is typically received in arrears within 60 days of revenue recognition. Manufacturing Revenue . Manufacturing revenue consists primarily of product sales generated by four businesses: Hoover, Dekko, Joyce and Forney. The Company has determined that each item ordered by the customer is a distinct performance obligation as it has standalone value and is distinct within the context of the contract. For arrangements with multiple performance obligations, the Company initially allocates the transaction price to each obligation based on its standalone selling price, which is the retail price charged to customers. Any discounts within the contract are allocated across all performance obligations unless observable evidence exists that the discount relates to a specific performance obligation or obligations in the contract. The Company sells some products and services with a right of return. This right of return constitutes variable consideration and is constrained from revenue recognition on a portfolio basis, using the expected value method until the refund period expires. The Company recognizes revenue when or as control transfers to the customer. Some manufacturing revenue is recognized ratably over the manufacturing period, if the product created for the customer does not have an alternative use to the Company and the Company has an enforceable right to payment for performance completed to date. The determination of the method by which the Company measures its progress toward the satisfaction of its performance obligations requires judgment. The Company measures its progress for these products using the units delivered method, an output measure. These arrangements represented 27% of the manufacturing revenue recognized for the year ended December 31, 2018 . Other manufacturing revenue is recognized at the point in time when control transfers to the customer, generally when the products are shipped. Some customers have a bill and hold arrangement with the Company. Revenue for bill and hold arrangements is recognized when control transfers to the customer, even though the customer does not have physical possession of the goods. Control transfers when the bill-and-hold arrangement has been requested from the customer, the product is identified as belonging to the customer and is ready for physical transfer, and the product cannot be directed for use by anyone but the customer. Payment terms and conditions vary by contract, although terms generally include a requirement of payment within 90 days of delivery. The Company evaluated the terms of the warranties and guarantees offered by its manufacturing businesses and determined that these should not be accounted for as a separate performance obligation as a distinct service is not identified. Healthcare Revenue . The Company contracts with patients to provide home health or hospice services. Payment is typically received from third-party payors such as Medicare, Medicaid, and private insurers. The payor is a third party to the contract that stipulates the transaction price of the contract. The Company identifies the patient as the party who benefits from its healthcare services and as such, the patient is its customer. The Company determined that healthcare services contracts generally have one performance obligation to provide healthcare services to patients. The transaction price reflects the amount of revenue the Company expects to receive in exchange for providing these services. As the transaction price for healthcare services is known at the time of contract inception, no variable consideration exists. Healthcare revenue is recognized ratably over the period of care. The Company generally uses the time-elapsed method, an input measure as it best depicts the simultaneous delivery and consumption of healthcare services. Payment is received from third-party payors within 60 days after a claim is filed, or in some cases in two installments, one during the contract and one after the services have been provided. Medicare is the most common third-party payor. Home health revenue contracts may be modified to account for changes in the patient’s plan of care. The Company identifies contract modifications when the modification changes the existing enforceable rights and obligations. As modifications to the plan of care modify the original performance obligation, the Company accounts for the contract modification as an adjustment to revenue (either as an increase in or a reduction of revenue) on a cumulative catch-up basis. Other Revenue . The Company recognizes revenue associated with management services it provides to its affiliates. The Company accounts for the management services provided as one performance obligation and recognizes revenue over time as the services are delivered. The Company uses the right to invoice practical expedient, an output method, as the Company’s right to revenue corresponds directly with the value delivered to the affiliate. As a result of the election to use the right to invoice practical expedient, the Company does not determine the transaction price or allocate any variable consideration at contract inception. Rather, the Company recognizes revenue commensurate with the amount to which it has the right to invoice the affiliate, which is based on contractually identified percentages. Payment is received monthly in arrears. SocialCode Revenue . SocialCode generates media management revenue in exchange for providing social media marketing solutions to its clients. The Company determined that SocialCode contracts generally have one performance obligation made up of a series of promises to manage the client’s media spend on advertising platforms for the duration of the contract period. SocialCode recognizes revenue, net of media acquisition costs, over time as media management services are delivered to the customer. Generally, SocialCode recognizes revenue using the right to invoice practical expedient, an output method, as SocialCode’s right to revenue corresponds directly with the value delivered to its customer. As a result of the election to use the right to invoice practical expedient, SocialCode does not determine the transaction price or allocate any variable consideration at contract inception. Rather, SocialCode recognizes revenue commensurate with the amount to which it has the right to invoice the customer which is a function of the cost of social media placement plus a management fee, less any applicable discounts. Payment is typically received within 100 days of revenue recognition. SocialCode evaluates whether it is the principal (i.e. presents revenue on a gross basis) or agent (i.e. presents revenue on a net basis) in its contracts. SocialCode presents revenue for media management services, net of media acquisition costs, as an agent, as SocialCode does not control the media before placement on social media platforms. Other Revenue . Other revenue primarily includes advertising and circulation revenue from Slate, Panoply and Foreign Policy. The Company accounts for other advertising revenues consistently with the advertising revenue streams addressed above. Circulation revenue consists of fees that provide customers access to online and print publications. The Company recognizes circulation revenue ratably over the subscription period beginning on the date that the publication is made available to the customer. Circulation revenue contracts are generally annual or monthly subscription contracts that are paid in advance of delivery of performance obligations. Revenue Policy Elections . The Company has elected to account for shipping and handling activities that occur after the customer has obtained control of the good as a fulfillment cost rather than as an additional promised service. Therefore, revenue for these performance obligations is recognized when control of the good transfers to the customer, which is when the good is ready for shipment. The Company accrues the related shipping and handling costs over the period when revenue is recognized. The Company has elected to exclude from the measurement of the transaction price all taxes assessed by a governmental authority that are both imposed on and concurrent with a specific revenue-producing transaction and collected by the entity from a customer. Revenue Practical Expedients . The Company does not disclose the value of unsatisfied performance obligations for (i) contracts with an original expected length of one year or less, (ii) contracts for which the amount of revenue recognized is based on the amount to which the Company has the right to invoice the customer for services performed, (iii) contracts for which the consideration received is a usage-based royalty promised in exchange for a license of intellectual property and (iv) contracts for which variable consideration is allocated entirely to a wholly unsatisfied promise to transfer a distinct good or service that forms part of a single performance obligation. Costs to Obtain a Contract . The Company incurs costs to obtain a contract that are both incremental and expected to be recovered as the costs would not have been incurred if the contract was not obtained and the revenue from the contract exceeds the associated cost. The revenue guidance provides a practical expedient to expense sales commissions as incurred in instances where the amortization period is one year or less. The amortization period is defined in the guidance as the contract term, inclusive of any expected contract renewal periods. The Company has elected to apply this practical expedient to all contracts except for contracts in its education division. In the education division, costs to obtain a contract are amortized over the applicable amortization period except for cases in which commissions paid on initial contracts and renewals are commensurate. The Company amortizes these costs to obtain a contract on a straight line basis over the amortization period. These expenses are included as operating expenses in the Company’s Consolidated Statements of Operations. |
Leases | Leases. The Company leases substantially all of its educational facilities and enters into various other lease agreements in conducting its business. At the inception of each lease, the Company evaluates the lease agreement to determine whether the lease is an operating or capital lease. Additionally, many of the Company’s lease agreements contain renewal options, tenant improvement allowances, rent holidays and/or rent escalation clauses. When such items are included in a lease agreement, the Company records a deferred rent asset or liability in the Consolidated Financial Statements and records these items in rent expense evenly over the terms of the lease. The Company is also required to make additional payments under operating lease terms for taxes, insurance and other operating expenses incurred during the operating lease period; such items are expensed as incurred. Rental deposits are included as other assets in the Company’s Consolidated Balance Sheets for lease agreements that require payments in advance or deposits held for security that are refundable, less any damages, at the end of the respective lease. |
Pensions and Other Postretirement Benefits | Pensions and Other Postretirement Benefits. The Company maintains various pension and incentive savings plans. Most of the Company’s employees are covered by these plans. The Company also provides healthcare and life insurance benefits to certain retired employees. These employees become eligible for benefits after meeting age and service requirements. The Company recognizes the overfunded or underfunded status of a defined benefit postretirement plan as an asset or liability in its Consolidated Balance Sheets and recognizes changes in that funded status in the year in which the changes occur through comprehensive income. The Company measures changes in the funded status of its plans using the projected unit credit method and several actuarial assumptions, the most significant of which are the discount rate, the expected return on plan assets and the rate of compensation increase. The Company uses a measurement date of December 31 for its pension and other postretirement benefit plans. |
Self-Insurance | Self-Insurance. The Company uses a combination of insurance and self-insurance for a number of risks, including claims related to employee healthcare and dental care, disability benefits, workers’ compensation, general liability, property damage and business interruption. Liabilities associated with these plans are estimated based on, among other things, the Company’s historical claims experience, severity factors and other actuarial assumptions. The expected loss accruals are based on estimates, and, while the Company believes that the amounts accrued are adequate, the ultimate loss may differ from the amounts provided. |
Income Taxes | Income Taxes. The Company accounts for income taxes under the asset and liability method, which requires the recognition of deferred tax assets and liabilities for the expected future tax consequences of events that have been included in the financial statements. Under this method, deferred tax assets and liabilities are determined based on the differences between the financial statements and tax basis of assets and liabilities using enacted tax rates in effect for the year in which the differences are expected to reverse. The effect of a change in tax rates on deferred tax assets and liabilities is recognized in income in the period that includes the enactment date. The Company records net deferred tax assets to the extent that it believes these assets will more likely than not be realized. In making such determination, the Company considers all available positive and negative evidence, including future reversals of existing taxable temporary differences, projected future taxable income, tax planning strategies and recent financial operations; this evaluation is made on an ongoing basis. In the event the Company were to determine that it was able to realize net deferred income tax assets in the future in excess of their net recorded amount, the Company would record an adjustment to the valuation allowance, which would reduce the provision for income taxes. The Company recognizes a tax benefit from an uncertain tax position when it is more likely than not that the position will be sustained upon examination, including resolutions of any related appeals or litigation processes, based on the technical merits. The Company records a liability for the difference between the benefit recognized and measured for financial statement purposes and the tax position taken or expected to be taken on the Company’s tax return. Changes in the estimate are recorded in the period in which such determination is made. |
Foreign Currency Translation | Foreign Currency Translation. Income and expense accounts of the Company’s non-United States operations where the local currency is the functional currency are translated into United States (U.S.) dollars using the current rate method, whereby operating results are converted at the average rate of exchange for the period, and assets and liabilities are converted at the closing rates on the period end date. Gains and losses on translation of these accounts are accumulated and reported as a separate component of equity and other comprehensive income. Gains and losses on foreign currency transactions, including foreign currency denominated intercompany loans on entities with a functional currency in U.S. dollars, are recognized in the Consolidated Statements of Operations. |
Equity-Based Compensation | Equity-Based Compensation. The Company measures compensation expense for awards settled in shares based on the grant date fair value of the award. The Company measures compensation expense for awards settled in cash, or that may be settled in cash, based on the fair value at each reporting date. The Company recognizes the expense over the requisite service period, which is generally the vesting period of the award. |
Earnings Per Share | Earnings Per Share. Basic earnings per share is calculated under the two-class method. The Company treats restricted stock as a participating security due to its nonforfeitable right to dividends. Under the two-class method, the Company allocates to the participating securities their portion of dividends declared and undistributed earnings to the extent the participating securities may share in the earnings as if all earnings for the period had been distributed. Basic earnings per share is calculated by dividing the income available to common stockholders by the weighted average number of common shares outstanding during the period. Diluted earnings per share is calculated similarly except that the weighted average number of common shares outstanding during the period includes the dilutive effect of the assumed exercise of options and restricted stock issuable under the Company’s stock plans. The dilutive effect of potentially dilutive securities is reflected in diluted earnings per share by application of the treasury stock method. |
Mandatorily Redeemable Noncontrolling Interest | Mandatorily Redeemable Noncontrolling Interest. The Company’s mandatorily redeemable noncontrolling interest represented the noncontrolling interest in Graham Healthcare Group (GHG), which was 90% owned. The minority shareholders had an option to put their shares to the Company starting in 2020 and were required to put a percentage of their shares in 2022 and 2024, with the remaining shares required to be put by the minority shareholders in 2026. Since the noncontrolling interest was mandatorily redeemable by 2026, it was reported as a noncurrent liability at December 31, 2017 in the Consolidated Balance Sheets. The Company presented this liability at fair value, which was computed annually as the current redemption value. Changes in the redemption value were recorded as interest expense or income in the Company’s Consolidated Statements of Operations. The mandatorily redeemable noncontrolling interest was redeemed and paid in July 2018 (see Note 3). |
Redeemable Noncontrolling Interest | Redeemable Noncontrolling Interest. The Company’s redeemable noncontrolling interest represents the noncontrolling interest in Hoover, which is 97.72% owned. The minority shareholders have an option to put some of their shares to the Company starting in 2019 and the remaining shares starting in 2021. The Company has an option to buy the shares of minority shareholders starting in 2027. The Company presents the redeemable noncontrolling interest at the greater of its carrying amount or redemption value at the end of each reporting period in the Consolidated Balance Sheets. Changes in the redemption value are recorded to capital in excess of par value in the Company’s Consolidated Balance Sheets. |
Comprehensive Income | Comprehensive Income. Comprehensive income consists of net income, foreign currency translation adjustments, net changes in cash flow hedge, and pension and other postretirement plan adjustments. |
Recently Adopted and Issued Accounting Pronouncemets | Recently Adopted and Issued Accounting Pronouncements. In May 2014, the Financial Accounting Standards Board (FASB) issued comprehensive new guidance that supersedes all existing revenue recognition guidance. 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. The standard permits two implementation approaches, full retrospective, requiring retrospective application of the new guidance with a restatement of prior years, or modified retrospective, requiring prospective application of the new guidance with disclosure of results under the old guidance in the first year of adoption. The Company adopted the new guidance on January 1, 2018, using the modified retrospective approach for contracts not completed as of the adoption date. Upon adoption of the new guidance, the Company recorded a net increase to the opening balance of retained earnings of $6.9 million . This adjustment was driven by changes in the timing of recognition of both revenues and expenses. A change in revenue recognition at a manufacturing business resulted in the acceleration of revenue and associated expenses as revenue is now recognized over time versus at a point in time. A change in the contract term at an education business resulted in a different revenue recognition pattern from previous recognition. Finally, the Company’s treatment of certain commissions paid to employees and agents at its education division changed. The Company previously expensed such commissions as incurred. Upon adoption of the new guidance, the Company capitalizes certain commission costs as an incremental cost of obtaining a contract and, subsequently, amortizes the cost as the tuition services are delivered to students. The cumulative effect of the changes to the Company’s Consolidated Balance Sheets as a result of adopting the new guidance was as follows: (in thousands) Balance as of December 31, 2017 Adjustments Balance as of January 1, 2018 Assets Accounts receivable, net $ 620,319 $ 2,142 $ 622,461 Inventories and contracts in progress 60,612 246 60,858 Other current assets 66,253 6,343 72,596 Liabilities Accounts payable and accrued liabilities $ 526,323 $ 88 $ 526,411 Deferred revenue 339,454 (346 ) 339,108 Deferred income taxes 362,701 2,066 364,767 Equity Retained earnings $ 5,791,724 $ 6,923 $ 5,798,647 Under the modified retrospective method of adoption, the Company is required to disclose the impact the adoption of the revenue guidance had on its Consolidated Statements of Operations. Under the previous guidance, KU’s fee revenue with Purdue University Global is not fixed and determinable until the end of Purdue University Global’s fiscal year (see Note 3). As a result, the Company would report $4.5 million less revenue and operating income. If the Company continued to follow its accounting policies under the previous guidance for all other revenue streams, revenue and expenses would be $1.7 million and $0.6 million lower, respectively, for the year ended December 31, 2018. This is primarily due to the net impact of the change in the timing of the recognition of revenue and costs to obtain a contract. In January 2016, the FASB issued new guidance that substantially revises the recognition, measurement and presentation of financial assets and financial liabilities. The new guidance, among other things, requires (i) equity investments (except those accounted for under the equity method of accounting or those that result in consolidation of the investee) to be measured at fair value with changes in fair value recognized in net income, with some exceptions; (ii) simplifies the impairment assessment of equity investments without readily determinable fair values by requiring a qualitative assessment to identify impairment; (iii) requires public business entities to use the exit price notion when measuring the fair value of financial instruments for disclosure purposes; (iv) requires separate presentation of financial assets and financial liabilities by measurement category and form of financial asset on the balance sheet or the accompanying notes to the financial statements; and (v) clarifies that an entity should evaluate the need for a valuation allowance on a deferred tax asset related to available-for-sale securities in combination with the entity’s other deferred tax assets. The guidance is effective for interim and fiscal years beginning after December 15, 2017. The Company adopted this guidance in the first quarter of 2018 and recorded a cumulative adjustment of $194.9 million to retained earnings on its Consolidated Balance Sheet related to unrealized gains of available-for-sale securities, net of tax, previously classified within accumulated other comprehensive income. Results for reporting periods beginning after January 1, 2018 are presented under this new guidance with any changes in fair value recognized in net income. In addition, the Company elected the measurement alternative to measure cost method investments that do not have a readily determinable fair value at cost less impairment, adjusted by observable price changes with any fair value changes recognized in net income. In February 2016, the FASB issued new guidance that requires, among other things, a lessee to recognize a right-of-use asset representing an entity’s right to use the underlying asset for the lease term and a liability for lease payments on its balance sheet, regardless of classification of a lease as operating or financing. For leases with a term of twelve months or less, a lessee is permitted to make an accounting policy election by class of underlying asset not to recognize lease assets and liabilities and account for the lease similar to existing guidance for operating leases today. This new guidance supersedes all prior guidance. The guidance is effective for interim and fiscal years beginning after December 15, 2018. Early adoption is permitted. The standard provides two methods of adoption under the modified retrospective approach. Under the comparative date method, lessees and lessors are required to recognize and measure leases as of the beginning of the earliest period presented. Under the effective date method, lessees and lessors are required to recognize and measure leases as of the period of adoption. The Company will adopt the new guidance using the effective date method on January 1, 2019. The Company expects to elect the available package of transition practical expedients, and the use of hindsight to determine the lease term. Additionally, the Company expects to elect the short-term lease recognition exemption, and the practical expedient not to separate non-lease components from the lease components to which they relate. The guidance will have a material impact on the Company’s Consolidated Balance Sheet, but will not impact the Company’s results of operations. The most significant impact will be the recognition of right-of-use assets and lease liabilities for operating leases. The Company has substantially completed its evaluation of the impact of adopting the new guidance, as well as its assessment of the need for any changes to the Company’s accounting policies and internal control structure. As a result, the Company will implement new processes and internal controls to enable the preparation of financial information on adoption. The Company is finalizing its evaluation of new disclosures required by the guidance to determine additional information that will need to be disclosed, including weighted average remaining lease term, and weighted average remaining discount rate. In March 2017, the FASB issued new guidance that changes the presentation of net periodic pension cost and net periodic postretirement benefit cost for defined benefit plans. The guidance requires an issuer to disaggregate the service cost component of net periodic pension and postretirement benefit cost from other components. Under the new guidance, service cost will be included in the same line item(s) as other compensation costs arising from services rendered by employees during the period, while the other components will be recognized after income from operations. The guidance is effective for interim and fiscal years beginning after December 15, 2017. The guidance must be applied retrospectively; however, a practical expedient is available which permits an employer to use amounts previously disclosed in its pension and postretirement plans footnote for the prior comparative periods. The Company adopted the new standard in the first quarter of 2018. In combination with the presentation change to net periodic pension cost and net periodic postretirement benefit cost, the Company allocated its costs associated with fringe benefits between operating expenses and selling, general and administrative expenses. Previously, costs related to fringe benefits were generally classified as selling, general and administrative expenses. The amounts in the previously issued financial statements have been reclassified to conform to the reclassified presentation. The effect of these changes to the Consolidated Statements of Operations for 2017 and 2016 is as follows: (in thousands) As Previously Reported Adjustment Upon Adoption Year Ended December 31, 2017 Operating expenses $ 1,359,842 $ 94,501 $ 1,454,343 Selling, general and administrative expenses 909,592 (21,802 ) 887,790 Income from Operations 209,102 (72,699 ) 136,403 Non-operating pension and postretirement benefit income, net — 72,699 72,699 Income Before Income Taxes 182,789 — 182,789 Year Ended December 31, 2016 Operating expenses $ 1,180,945 $ 89,085 $ 1,270,030 Selling, general and administrative expenses 904,517 (8,420 ) 896,097 Income from Operations 303,534 (80,665 ) 222,869 Non-operating pension and postretirement benefit income, net — 80,665 80,665 Income Before Income Taxes 250,658 — 250,658 In August 2018, the FASB issued new guidance that modified the disclosure requirements for employers that sponsor defined benefit pension or other postretirement plans. The new guidance, among other things, removed the following disclosure requirements: (i) the amounts in accumulated other comprehensive income expected to be recognized as components of net periodic benefit cost over the next fiscal year, and (ii) the effects of a one-percentage-point change in assumed health care cost trend rates on the (a) aggregate of the service and interest cost components of net periodic benefit costs, and (b) benefit obligation for postretirement health care benefits. The guidance also added the following disclosure requirements: (i) the weighted-average interest crediting rates for cash balance plans with promised interest crediting rates, and (ii) an explanation of the reasons for significant gains and losses related to changes in the benefit obligation for the period. This guidance is effective for fiscal years ending after December 15, 2020, with early adoption permitted. The Company adopted this guidance in the fourth quarter of 2018. Other new pronouncements issued but not effective until after December 31, 2018, are not expected to have a material impact on the Company’s Consolidated Financial Statements. |
Summary of Significant Accoun_3
Summary of Significant Accounting Policies Summary of Significant Accounting Policies (Tables) | 12 Months Ended |
Dec. 31, 2018 | |
Accounting Policies [Abstract] | |
Schedule of Prospective Adoption of New Accounting Pronouncements | The cumulative effect of the changes to the Company’s Consolidated Balance Sheets as a result of adopting the new guidance was as follows: (in thousands) Balance as of December 31, 2017 Adjustments Balance as of January 1, 2018 Assets Accounts receivable, net $ 620,319 $ 2,142 $ 622,461 Inventories and contracts in progress 60,612 246 60,858 Other current assets 66,253 6,343 72,596 Liabilities Accounts payable and accrued liabilities $ 526,323 $ 88 $ 526,411 Deferred revenue 339,454 (346 ) 339,108 Deferred income taxes 362,701 2,066 364,767 Equity Retained earnings $ 5,791,724 $ 6,923 $ 5,798,647 |
Schedule of New Accounting Pronouncements and Changes in Accounting Principles | The effect of these changes to the Consolidated Statements of Operations for 2017 and 2016 is as follows: (in thousands) As Previously Reported Adjustment Upon Adoption Year Ended December 31, 2017 Operating expenses $ 1,359,842 $ 94,501 $ 1,454,343 Selling, general and administrative expenses 909,592 (21,802 ) 887,790 Income from Operations 209,102 (72,699 ) 136,403 Non-operating pension and postretirement benefit income, net — 72,699 72,699 Income Before Income Taxes 182,789 — 182,789 Year Ended December 31, 2016 Operating expenses $ 1,180,945 $ 89,085 $ 1,270,030 Selling, general and administrative expenses 904,517 (8,420 ) 896,097 Income from Operations 303,534 (80,665 ) 222,869 Non-operating pension and postretirement benefit income, net — 80,665 80,665 Income Before Income Taxes 250,658 — 250,658 |
Acquisitions and Dispositions_2
Acquisitions and Dispositions of Businesses (Tables) | 12 Months Ended |
Dec. 31, 2018 | |
Acquisitions And Dispositions [Abstract] | |
Schedule of assets acquired and liabilities assumed | The aggregate purchase price of these acquisitions was allocated as follows, based on acquisition date fair values to the following assets and liabilities (excluding measurement period adjustments recorded in subsequent years): Purchase Price Allocation Year Ended December 31 (in thousands) 2018 2017 2016 Accounts receivable $ 2,344 $ 12,502 $ 8,538 Inventory 1,268 25,253 878 Property, plant and equipment 1,518 29,921 3,940 Goodwill 41,840 143,149 184,118 Indefinite-lived intangible assets — 33,800 53,110 Amortized intangible assets 78,427 170,658 28,267 Other assets 5,198 1,880 1,420 Pension and other postretirement benefits liabilities — (59,116 ) — Other liabilities (7,678 ) (12,177 ) (21,892 ) Deferred income taxes (4,900 ) (37,289 ) (11,009 ) Redeemable noncontrolling interest — (3,666 ) — Aggregate purchase price, net of cash acquired $ 118,017 $ 304,915 $ 247,370 |
Acqusition Pro Forma Financial Information | The following unaudited pro forma financial information presents the Company’s results as if the current year acquisitions had occurred at the beginning of 2017 . The unaudited pro forma information also includes the 2017 acquisitions as if they occurred at the beginning of 2016 and the 2016 acquisitions as if they had occurred at the beginning of 2015: Year Ended December 31 (in thousands) 2018 2017 2016 Operating revenues $ 2,735,879 $ 2,725,046 $ 2,570,416 Net income 273,688 311,397 175,021 |
Information related to a Disposal Group | The revenue and operating income related to the KU business disposed of is as follows: Year Ended December 31 (in thousands) 2018 2017 2016 Revenue $ 91,526 $ 430,645 $ 500,914 Operating income 213 17,869 39,498 |
Investments (Tables)
Investments (Tables) | 12 Months Ended |
Dec. 31, 2018 | |
Investments [Abstract] | |
Investments in Marketable Equity Securities | Investments in marketable equity securities consist of the following: As of December 31 (in thousands) 2018 2017 Total cost $ 282,563 $ 269,343 Gross unrealized gains 216,111 266,972 Gross unrealized losses (2,284 ) — Total Fair Value $ 496,390 $ 536,315 |
Loss on marketable equity securities | The net loss on marketable equity securities comprised the following: Year ended (in thousands) December 31, 2018 Loss on marketable equity securities, net $ (15,843 ) Plus: Net losses in earnings from marketable equity securities sold 4,271 Net unrealized losses in earnings from marketable equity securities still held at the end of the year $ (11,572 ) |
Accounts Receivable, Accounts_2
Accounts Receivable, Accounts Payable and Accrued Liabilities (Tables) | 12 Months Ended |
Dec. 31, 2018 | |
Accounts Receivable Accounts Payable And Accrued Liabilities [Abstract] | |
Schedule of Accounts Receivable | Accounts receivable consist of the following: As of December 31 (in thousands) 2018 2017 Receivables from contracts with customers, less doubtful accounts of $14,775 and $22,975 $ 538,021 $ 600,215 Other receivables 44,259 20,104 $ 582,280 $ 620,319 |
Schedule of Changes in Allowance for Doubtful Accounts | The changes in allowance for doubtful accounts was as follows: (in thousands) Balance at Beginning of Period Additions – Charged to Costs and Expenses Deductions Balance at End of Period 2018 $ 22,975 $ 10,209 $ (18,409 ) $ 14,775 2017 $ 26,723 $ 33,830 $ (37,578 ) $ 22,975 2016 $ 27,854 $ 29,718 $ (30,849 ) $ 26,723 |
Schedule of Accounts Payable and Accrued Liabilities | Accounts payable and accrued liabilities consist of the following: As of December 31 (in thousands) 2018 2017 Accounts payable and accrued liabilities $ 337,123 $ 385,927 Accrued compensation and related benefits 149,455 140,396 $ 486,578 $ 526,323 |
Inventories and Contracts in _2
Inventories and Contracts in Progress (Tables) | 12 Months Ended |
Dec. 31, 2018 | |
Inventories and Contracts in Progress [Abstract] | |
Schedule of Inventories and Contracts in Progress | Inventories and contracts in progress consist of the following: As of December 31 (in thousands) 2018 2017 Raw materials $ 37,248 $ 30,429 Work-in-process 11,633 10,258 Finished goods 17,861 18,851 Contracts in progress 2,735 1,074 $ 69,477 $ 60,612 |
Property, Plant and Equipment (
Property, Plant and Equipment (Tables) | 12 Months Ended |
Dec. 31, 2018 | |
Property, Plant and Equipment [Abstract] | |
Property, Plant and Equipment | Property, plant and equipment consist of the following: As of December 31 (in thousands) 2018 2017 Land $ 15,965 $ 16,190 Buildings 108,683 107,932 Machinery, equipment and fixtures 382,064 387,914 Leasehold improvements 206,170 215,445 Construction in progress 68,064 16,649 780,946 744,130 Less accumulated depreciation (487,861 ) (484,772 ) $ 293,085 $ 259,358 |
Goodwill and Other Intangible_2
Goodwill and Other Intangible Assets (Tables) | 12 Months Ended |
Dec. 31, 2018 | |
Changes in Carrying Amount of Goodwill | The changes in the carrying amount of goodwill, by segment, were as follows: (in thousands) Education Television Broadcasting Healthcare Other Businesses Total As of December 31, 2016 Goodwill $ 1,111,003 $ 168,345 $ 59,640 $ 142,501 $ 1,481,489 Accumulated impairment losses (350,850 ) — — (7,685 ) (358,535 ) 760,153 168,345 59,640 134,816 1,122,954 Acquisitions 19,174 22,470 10,181 91,324 143,149 Impairment — — — (7,616 ) (7,616 ) Dispositions — — (412 ) — (412 ) Foreign currency exchange rate changes 41,635 — — — 41,635 As of December 31, 2017 Goodwill 1,171,812 190,815 69,409 233,825 1,665,861 Accumulated impairment losses (350,850 ) — — (15,301 ) (366,151 ) 820,962 190,815 69,409 218,524 1,299,710 Acquisitions 20,424 — 217 21,199 41,840 Dispositions (11,191 ) — — — (11,191 ) Foreign currency exchange rate changes (32,647 ) — — — (32,647 ) As of December 31, 2018 Goodwill 1,128,699 190,815 69,626 255,024 1,644,164 Accumulated impairment losses (331,151 ) — — (15,301 ) (346,452 ) $ 797,548 $ 190,815 $ 69,626 $ 239,723 $ 1,297,712 |
Other Intangible Assets | Other intangible assets consist of the following: As of December 31, 2018 As of December 31, 2017 (in thousands) Useful Life Range Gross Carrying Amount Accumulated Amortization Net Carrying Amount Gross Accumulated Net Amortized Intangible Assets Student and customer relationships 2–10 years (1) $ 282,761 $ 114,429 $ 168,332 $ 260,464 $ 83,690 $ 176,774 Trade names and trademarks 2–10 years 87,285 39,825 47,460 50,286 25,596 24,690 Network affiliation agreements 10 years 17,400 3,408 13,992 17,400 1,668 15,732 Databases and technology 3–6 years 27,041 8,471 18,570 19,563 5,008 14,555 Noncompete agreements 2–5 years 1,088 838 250 930 467 463 Other 1–8 years 24,530 9,873 14,657 13,430 7,668 5,762 $ 440,105 $ 176,844 $ 263,261 $ 362,073 $ 124,097 $ 237,976 Indefinite-Lived Intangible Assets Trade names and trademarks $ 80,102 $ 82,745 FCC licenses 18,800 18,800 Licensure and accreditation 150 650 $ 99,052 $ 102,195 ____________ (1) As of December 31, 2017, the student and customer relationships’ minimum useful life was 1 year. |
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) Kaplan International Higher Education Test Preparation Professional (U.S.) Total As of December 31, 2016 Goodwill $ 555,185 $ 205,494 $ 166,098 $ 184,226 $ 1,111,003 Accumulated impairment losses — (131,023 ) (102,259 ) (117,568 ) (350,850 ) 555,185 74,471 63,839 66,658 760,153 Acquisitions 19,174 — — — 19,174 Foreign currency exchange rate changes 41,502 — — 133 41,635 As of December 31, 2017 Goodwill 615,861 205,494 166,098 184,359 1,171,812 Accumulated impairment losses — (131,023 ) (102,259 ) (117,568 ) (350,850 ) 615,861 74,471 63,839 66,791 820,962 Acquisitions 62 — 822 19,540 20,424 Dispositions — (11,191 ) — — (11,191 ) Foreign currency exchange rate changes (32,499 ) (40 ) — (108 ) (32,647 ) As of December 31, 2018 Goodwill 583,424 174,564 166,920 203,791 1,128,699 Accumulated impairment losses — (111,324 ) (102,259 ) (117,568 ) (331,151 ) $ 583,424 $ 63,240 $ 64,661 $ 86,223 $ 797,548 |
Income Taxes (Tables)
Income Taxes (Tables) | 12 Months Ended |
Dec. 31, 2018 | |
Schedule of Income Before Income Taxes, Domestic and Foreign | Income before income taxes consists of the following: Year Ended December 31 (in thousands) 2018 2017 2016 U.S. $ 257,312 $ 134,276 $ 227,457 Non-U.S. 66,196 48,513 23,201 $ 323,508 $ 182,789 $ 250,658 |
Schedule of Provision for Income Taxes on Income | The provision for (benefit from) income taxes consists of the following: (in thousands) Current Deferred Total Year Ended December 31, 2018 U.S. Federal $ 46,059 $ 16,718 $ 62,777 State and Local 2,240 (23,809 ) (21,569 ) Non-U.S. 10,924 (32 ) 10,892 $ 59,223 $ (7,123 ) $ 52,100 Year Ended December 31, 2017 U.S. Federal $ 10,743 $ (153,217 ) $ (142,474 ) State and Local 5,930 3,306 9,236 Non-U.S. 10,079 3,459 13,538 $ 26,752 $ (146,452 ) $ (119,700 ) Year Ended December 31, 2016 U.S. Federal $ 56,342 $ 33,959 $ 90,301 State and Local 6,325 (5,164 ) 1,161 Non-U.S. 8,463 (18,725 ) (10,262 ) $ 71,130 $ 10,070 $ 81,200 |
Schedule of Effective Income Tax Rate Reconciliation | The provision for income taxes differs from the amount of income tax determined by applying the U.S. Federal statutory rate of 21% in 2018, and 35% in 2017 and 2016, to the income before taxes, as a result of the following: Year Ended December 31 (in thousands) 2018 2017 2016 U.S. Federal taxes at statutory rate (see above) $ 67,937 $ 63,976 $ 87,731 State and local taxes, net of U.S. Federal tax (1,279 ) 6,949 (2,965 ) Valuation allowances against state tax benefits, net of U.S. Federal tax (15,767 ) (946 ) 3,196 Stock-based compensation (1,731 ) (6,023 ) — Valuation allowances against other non-U.S. income tax benefits 1,322 (1,935 ) (12,688 ) Goodwill impairments and dispositions — — (5,631 ) U.S. Federal Manufacturing Deduction tax benefits — (1,329 ) (6,012 ) Write-off of deferred taxes related to intercompany loans — — 10,965 Deferred tax impact of U.S. Federal tax rate reduction to 21%, net of state tax impact — (153,336 ) — Deferred tax benefit on unremitted non-U.S. subsidiary earnings related to the Tax Act — (28,324 ) — Other, net 1,618 1,268 6,604 Provision for (Benefit from) Income Taxes $ 52,100 $ (119,700 ) $ 81,200 |
Schedule of Deferred Tax Assets and Liabilities | Deferred income taxes consist of the following: As of December 31 (in thousands) 2018 2017 Employee benefit obligations $ 68,392 $ 84,148 Accounts receivable 4,449 5,481 State income tax loss carryforwards 34,107 35,434 State capital loss carryforwards 1,093 — U.S. Federal income tax loss carryforwards 2,100 2,857 U.S. Federal foreign income tax credit carryforwards 987 2,522 Non-U.S. income tax loss carryforwards 15,868 18,797 Non-U.S. capital loss carryforwards 3,609 2,336 Other 14,657 26,546 Deferred Tax Assets 145,262 178,121 Valuation allowances (33,120 ) (48,742 ) Deferred Tax Assets, Net $ 112,142 $ 129,379 Prepaid pension cost 269,412 283,604 Unrealized gain on available-for-sale securities 51,242 70,827 Goodwill and other intangible assets 88,798 109,428 Property, plant and equipment 9,997 11,248 Non-U.S. withholding tax 1,726 1,606 Deferred Tax Liabilities $ 421,175 $ 476,713 Deferred Income Tax Liabilities, Net $ 309,033 $ 347,334 |
Schedule of Changes in Deferred Tax Valuation Allowance | Deferred tax valuation allowances and changes in deferred tax valuation allowances were as follows: (in thousands) Balance at Beginning of Period Tax Expense and Revaluation Deductions Balance at End of Period Year ended December 31, 2018 $ 48,742 $ 4,413 $ (20,035 ) $ 33,120 December 31, 2017 $ 41,319 $ 7,423 $ — $ 48,742 December 31, 2016 $ 69,545 $ 4,709 $ (32,935 ) $ 41,319 |
Schedule of Unrecognized Tax Benefits Roll Forward | The following summarizes the Company’s unrecognized tax benefits, excluding interest and penalties, for the respective periods: Year Ended December 31 (in thousands) 2018 2017 2016 Beginning unrecognized tax benefits $ 17,331 $ 17,331 $ 17,331 Increases related to current year tax positions — — — Increases related to prior year tax positions 500 — — Decreases related to prior year tax positions (12,187 ) — — Decreases related to settlement with tax authorities — — — Decreases due to lapse of applicable statutes of limitations (3,161 ) — — Ending unrecognized tax benefits $ 2,483 $ 17,331 $ 17,331 |
State [Member] | |
Schedule of Income Tax Loss Carryforwards | The Company has $698.9 million of state income tax net operating loss carryforwards available to offset future state taxable income. State income tax loss carryforwards, if unutilized, will start to expire approximately as follows: (in millions) 2019 $ 1.8 2020 15.5 2021 17.1 2022 0.3 2023 5.0 2024 and after 659.2 Total $ 698.9 |
U.S. Federal [Member] | |
Schedule of Income Tax Loss Carryforwards | The Company has $9.9 million of U.S. Federal income tax loss carryforwards obtained as a result of prior stock acquisitions. U.S. Federal income tax loss carryforwards are expected to be fully utilized as follows: (in millions) 2019 $ 3.3 2020 3.3 2021 1.1 2022 0.9 2023 0.4 2024 and after 0.9 Total $ 9.9 |
Debt (Tables)
Debt (Tables) | 12 Months Ended |
Dec. 31, 2018 | |
Debt Disclosure [Abstract] | |
Components of Debt | The Company’s borrowings consist of the following: As of December 31 (in thousands) 2018 2017 5.75% unsecured notes due June 1, 2026 (1) $ 394,675 $ — 7.25% unsecured notes due February 1, 2019 — 399,507 U.K. Credit facility (2) 82,366 93,671 Other indebtedness 96 109 Total Debt 477,137 493,287 Less: current portion (6,360 ) (6,726 ) Total Long-Term Debt $ 470,777 $ 486,561 ____________ (1) The carrying value is net of $5.3 million of unamortized debt issuance costs as of December 31, 2018 . (2) The carrying value is net of $0.2 million and $0.4 million of unamortized debt issuance costs as of December 31, 2018 and 2017 , respectively. |
Fair Value Measurements (Tables
Fair Value Measurements (Tables) | 12 Months Ended |
Dec. 31, 2018 | |
Fair Value Disclosures [Abstract] | |
Summary 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 December 31, 2018 (in thousands) Level 1 Level 2 Total Assets Money market investments (1) $ — $ 75,500 $ 75,500 Marketable equity securities (2) 496,390 — 496,390 Other current investments (3) 11,203 6,988 18,191 Interest rate swap (4) — 369 369 Total Financial Assets $ 507,593 $ 82,857 $ 590,450 Liabilities Deferred compensation plan liabilities (5) $ — $ 36,080 $ 36,080 As of December 31, 2017 (in thousands) Level 1 Level 2 Level 3 Total Assets Money market investments (1) $ — $ 217,628 $ — $ 217,628 Marketable equity securities (2) 536,315 — — 536,315 Other current investments (3) 9,831 11,007 — 20,838 Total Financial Assets $ 546,146 $ 228,635 $ — $ 774,781 Liabilities Deferred compensation plan liabilities (5) $ — $ 43,414 $ — $ 43,414 Interest rate swap (6) — 244 — 244 Mandatorily redeemable noncontrolling interest (7) — — 10,331 10,331 Total Financial Liabilities $ — $ 43,658 $ 10,331 $ 53,989 ____________ (1) The Company’s money market investments are included in cash, cash equivalents and restricted cash and the value considers the liquidity of the counterparty. (2) The Company’s investments in marketable equity securities are held in common shares of U.S. corporations that are actively traded on U.S. stock exchanges. Price quotes for these shares are readily available. Investments in marketable securities were classified as available-for-sale in 2017 prior to the adoption of the new accounting guidance (see Note 2). (3) Includes U.S. Government Securities, corporate bonds, mutual funds and time deposits. These investments are valued using a market approach based on the quoted market prices of the security or inputs that include quoted market prices for similar instruments and are classified as either Level 1 or Level 2 in the fair value hierarchy. (4) Included in Deferred Charges and Other Assets. 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. (5) Includes Graham Holdings Company’s Deferred Compensation Plan and supplemental savings plan benefits under the Graham Holdings Company’s Supplemental Executive Retirement Plan, which are included in accrued compensation and related benefits. These plans measure the market value of a participant’s balance in a notional investment account that is comprised primarily of mutual funds, which are based on observable market prices. However, since the deferred compensation obligations are not exchanged in an active market, they are classified as Level 2 in the fair value hierarchy. Realized and unrealized gains (losses) on deferred compensation are included in operating income. (6) Included in Other liabilities. The Company utilized a market approach model using the notional amount of the interest rate swap multiplied by the observable inputs of time to maturity and market interest rates. (7) The fair value of the mandatorily redeemable noncontrolling interest is based on an EBITDA multiple, adjusted for working capital and other items, which approximates fair value. |
Revenue from Contracts with C_2
Revenue from Contracts with Customers (Tables) | 12 Months Ended |
Dec. 31, 2018 | |
Revenue from Contract with Customer [Abstract] | |
Disaggregation of Revenue | The following table presents the Company’s revenue disaggregated by revenue source for the years ended December 31, 2018 , 2017 and 2016: Year Ended December 31 (in thousands) 2018 2017 2016 Education Revenue Kaplan international $ 719,982 $ 697,999 $ 696,362 Higher education 342,085 431,425 501,784 Test preparation 256,102 273,298 286,556 Professional (U.S.) 134,187 115,839 115,263 Kaplan corporate and other 1,142 294 214 Intersegment elimination (2,483 ) (2,079 ) (1,718 ) 1,451,015 1,516,776 1,598,461 Television broadcasting 505,549 409,916 409,718 Manufacturing 487,619 414,193 241,604 Healthcare 149,275 154,202 146,962 SocialCode 58,728 62,077 58,851 Other 43,880 34,733 26,433 Intersegment elimination (100 ) (51 ) (139 ) Total Revenue $ 2,695,966 $ 2,591,846 $ 2,481,890 |
Contract with Customer, Liability | The following table presents the change in the Company’s deferred revenue balance during the year ended December 31, 2018 : As of December 31, January 1, % (in thousands) Change Deferred revenue $ 311,214 $ 342,640 (9) |
Capitalized Contract Cost | The following table presents changes in the Company’s costs to obtain a contract asset during the year ended December 31, 2018 : (in thousands) Balance at Beginning of Year Costs Associated with New Contracts Less: Costs Amortized during the Year Other Balance at End of Year 2018 $ 16,043 $ 55,664 $ (49,284 ) $ (1,112 ) $ 21,311 |
Capital Stock, Stock Awards and
Capital Stock, Stock Awards and Stock Options (Tables) | 12 Months Ended |
Dec. 31, 2018 | |
Capital Stock, Stock Awards, and Stock Options [Abstract] | |
Activity Related to Stock Awards | Activity related to stock awards under the 2012 incentive compensation plan for the year ended December 31, 2018 was as follows: Number of Shares Average Grant-Date Fair Value Beginning of year, unvested 51,575 $ 744.07 Awarded 375 875.40 Vested (14,275 ) 694.81 Forfeited (5,475 ) 863.21 End of Year, unvested 32,200 747.18 |
Activity Related to Stock Options | Activity related to options outstanding for the year ended December 31, 2018 was as follows: Number of Shares Average Option Price Beginning of year 185,520 $ 565.65 Granted — — Exercised (588 ) 281.18 Expired or forfeited — — End of Year 184,932 566.55 |
Information related to Stock Options Outstanding and Exercisable | Information related to stock options outstanding and exercisable at December 31, 2018 , is as follows: Options Outstanding Options Exercisable Range of Exercise Prices Shares Outstanding at 12/31/2018 Weighted Average Remaining Contractual Life (years) Weighted Shares Exercisable at 12/31/2018 Weighted Weighted $244–276 3,674 2.5 $ 259.19 3,674 2.5 $ 259.19 325 77,258 2.1 325.26 77,258 2.1 325.26 719 77,258 5.8 719.15 51,504 5.8 719.15 805–872 26,742 7.0 865.02 12,702 6.9 866.03 184,932 4.4 566.55 145,138 3.9 510.69 |
Fair Value of Options Assumptions | The fair value of options at date of grant was estimated using the Black-Scholes method utilizing the following assumptions: 2017 Expected life (years) 8 Interest rate 2.28% Volatility 26.93% Dividend yield 0.85% |
Summary of Earnings Per Share, Basic and Diluted | The following reflects the Company’s net income and share data used in the basic and diluted earnings per share computations using the two-class method: Year Ended December 31 (in thousands, except per share amounts) 2018 2017 2016 Numerator: Numerator for basic earnings per share: Net income attributable to Graham Holdings Company common stockholders $ 271,206 $ 302,044 $ 168,590 Less: Dividends paid–common stock outstanding and unvested restricted shares (28,617 ) (28,329 ) (27,325 ) Undistributed earnings 242,589 273,715 141,265 Percent allocated to common stockholders 99.39 % 99.06 % 98.79 % 241,115 271,150 139,562 Add: Dividends paid–common stock outstanding 28,423 28,060 26,962 Numerator for basic earnings per share 269,538 299,210 166,524 Add: Additional undistributed earnings due to dilutive stock options 10 17 9 Numerator for diluted earnings per share $ 269,548 $ 299,227 $ 166,533 Denominator: Denominator for basic earnings per share: Weighted average shares outstanding 5,333 5,516 5,559 Add: Effect of dilutive stock options 37 36 30 Denominator for diluted earnings per share 5,370 5,552 5,589 Graham Holdings Company Common Stockholders: Basic earnings per share $ 50.55 $ 54.24 $ 29.95 Diluted earnings per share $ 50.20 $ 53.89 $ 29.80 |
Antidilutive Weighted Average Restricted Stock and Options [Table Text Block] | Diluted earnings per share excludes the following weighted average potential common shares, as the effect would be antidilutive, as computed under the treasury stock method: Year Ended December 31 (in thousands) 2018 2017 2016 Weighted average restricted stock 23 30 40 |
Pension and Postretirement Pl_2
Pension and Postretirement Plans (Tables) | 12 Months Ended |
Dec. 31, 2018 | |
Defined Benefit Plans [Member] | |
Defined Benefit Plan Disclosure [Line Items] | |
Schedule of Amounts Recognized in Balance Sheet | The amounts recognized in the Company’s Consolidated Balance Sheets for its defined benefit pension plans are as follows: Pension Plans SERP As of December 31 As of December 31 (in thousands) 2018 2017 2018 2017 Noncurrent asset $ 1,003,558 $ 1,056,777 $ — $ — Current liability — — (6,321 ) (5,838 ) Noncurrent liability — — (96,227 ) (104,244 ) Recognized Asset (Liability) $ 1,003,558 $ 1,056,777 $ (102,548 ) $ (110,082 ) |
Schedule of Estimated Benefit Payments | At December 31, 2018 , future estimated benefit payments, excluding charges for early retirement programs, are as follows: (in thousands) Pension Plans SERP 2019 $ 76,245 $ 6,456 2020 $ 76,715 $ 6,743 2021 $ 75,956 $ 6,946 2022 $ 75,909 $ 7,078 2023 $ 75,389 $ 7,149 2024–2028 $ 367,130 $ 35,656 |
Schedule of Amounts Recognized in Accumulated Other Comprehensive Income (Loss) | Accumulated other comprehensive income (AOCI) includes the following components of unrecognized net periodic cost for the defined benefit plans: Pension Plans SERP As of December 31 As of December 31 (in thousands) 2018 2017 2018 2017 Unrecognized actuarial (gain) loss $ (313,809 ) $ (461,779 ) $ 17,270 $ 27,225 Unrecognized prior service cost 7,273 270 1,037 320 Gross Amount (306,536 ) (461,509 ) 18,307 27,545 Deferred tax liability (asset) 82,765 124,607 (4,943 ) (7,437 ) Net Amount $ (223,771 ) $ (336,902 ) $ 13,364 $ 20,108 |
Defined Benefit Plans [Member] | Benefit Obligation [Member] | |
Defined Benefit Plan Disclosure [Line Items] | |
Schedule of Assumptions Used | Key assumptions utilized for determining the benefit obligation are as follows: Pension Plans SERP As of December 31 As of December 31 2018 2017 2018 2017 Discount rate 4.3% 3.6% 4.3% 3.6% Rate of compensation increase – age graded 5.0%–1.0% 5.0%–1.0% 5.0%–1.0% 5.0%–1.0% Cash balance interest crediting rate 3.50% with phase in to 4.30% in 2021 2.23% with phase in to 3.00% in 2020 — — |
Defined Benefit Plans [Member] | Periodic Cost [Member] | |
Defined Benefit Plan Disclosure [Line Items] | |
Schedule of Assumptions Used | The costs for the Company’s defined benefit pension plans are actuarially determined. Below are the key assumptions utilized to determine periodic cost: Pension Plans SERP Year Ended December 31 Year Ended December 31 2018 2017 2016 2018 2017 2016 Discount rate (1) 4.0%/3.6% 4.1% 4.3% 3.6% 4.1% 4.3% Expected return on plan assets 6.25% 6.25% 6.5% — — — Rate of compensation increase Age graded Age graded 4.0% Age graded Age graded 4.0% Cash balance interest crediting rate 2.23% with phase in to 3.00% in 2020 1.57% with phase in to 3.00% in 2020 1.41% with phase in to 3.00% in 2019 — — — ___________ _ (1) As a result of the Kaplan University transaction, the Company remeasured the accumulated and projected benefit obligation of the pension plan as of March 22, 2018. The remeasurement changed the discount rate from 3.6% for the period January 1 to March 23, 2018 to 4.0% for the period after March 23, 2018. |
Pension Plans [Member] | |
Defined Benefit Plan Disclosure [Line Items] | |
Schedule of Obligation, Asset and Funding Information | The following table sets forth obligation, asset and funding information for the Company’s defined benefit pension plans: Pension Plans As of December 31 (in thousands) 2018 2017 Change in Benefit Obligation Benefit obligation at beginning of year $ 1,286,694 $ 1,160,897 Service cost 18,221 18,687 Interest cost 46,787 47,925 Amendments 7,183 75 Actuarial (gain) loss (81,851 ) 73,191 Acquisitions — 58,600 Benefits paid (63,852 ) (74,506 ) Special termination benefits — 1,825 Curtailment (836 ) — Settlement (95,777 ) — Benefit Obligation at End of Year $ 1,116,569 $ 1,286,694 Change in Plan Assets Fair value of assets at beginning of year $ 2,343,471 $ 2,042,490 Actual return on plan assets (63,715 ) 375,487 Benefits paid (63,852 ) (74,506 ) Settlement (95,777 ) — Fair Value of Assets at End of Year $ 2,120,127 $ 2,343,471 Funded Status $ 1,003,558 $ 1,056,777 |
Schedule of Net (Benefit) Costs | The total (benefit) cost arising from the Company’s defined benefit pension plans consists of the following components: Pension Plans Year Ended December 31 (in thousands) 2018 2017 2016 Service cost $ 18,221 $ 18,687 $ 20,461 Interest cost 46,787 47,925 51,608 Expected return on assets (129,220 ) (121,411 ) (121,470 ) Amortization of prior service cost 150 170 297 Recognized actuarial gain (9,969 ) (4,410 ) — Net Periodic Benefit for the Year (74,031 ) (59,039 ) (49,104 ) Curtailment (806 ) — — Settlement (26,917 ) — (17,993 ) Early retirement programs and special separation benefit expense — 1,825 — Total Benefit for the Year $ (101,754 ) $ (57,214 ) $ (67,097 ) Other Changes in Plan Assets and Benefit Obligations Recognized in Other Comprehensive Income Current year actuarial loss (gain) $ 111,084 $ (180,885 ) $ 147,779 Current year prior service cost 7,183 75 — Amortization of prior service cost (150 ) (170 ) (297 ) Recognized net actuarial gain 9,969 4,410 — Curtailment and settlement 26,887 — 17,993 Total Recognized in Other Comprehensive Income (Before Tax Effects) $ 154,973 $ (176,570 ) $ 165,475 Total Recognized in Total Benefit and Other Comprehensive Income (Before Tax Effects) $ 53,219 $ (233,784 ) $ 98,378 |
Allocation of the Assets of the Company's Pension Plans | The assets of the Company’s pension plans were allocated as follows: As of December 31 2018 2017 U.S. equities 53 % 53 % U.S. stock index fund 28 % 30 % U.S. fixed income 13 % 11 % International equities 6 % 6 % 100 % 100 % |
Fair Value, Assets Measured on Recurring Basis | The Company’s pension plan assets measured at fair value on a recurring basis were as follows: As of December 31, 2018 (in thousands) Level 1 Level 2 Level 3 Total Cash equivalents and other short-term investments $ 2,068 $ 269,544 $ — $ 271,612 Equity securities U.S. equities 1,115,323 — — 1,115,323 International equities 131,912 — — 131,912 U.S. stock index fund — — 601,395 601,395 Total Investments $ 1,249,303 $ 269,544 $ 601,395 $ 2,120,242 Payable for settlement of investments purchased, net (115 ) Total $ 2,120,127 As of December 31, 2017 (in thousands) Level 1 Level 2 Level 3 Total Cash equivalents and other short-term investments $ 73,877 $ 181,638 $ — $ 255,515 Equity securities U.S. equities 1,242,139 — — 1,242,139 International equities 138,640 — — 138,640 U.S. stock index fund — — 706,202 706,202 Total Investments $ 1,454,656 $ 181,638 $ 706,202 $ 2,342,496 Receivables 975 Total $ 2,343,471 |
Schedule of Effect of Significant Unobservable Inputs, Changes in Plan Assets | The following table provides a reconciliation of changes in pension assets measured at fair value on a recurring basis, using Level 3 inputs: U.S. Stock Index Fund Year Ended December 31 (in thousands) 2018 2017 Balance at Beginning of Year $ 706,202 $ 622,865 Purchases, sales, and settlements, net (80,000 ) (50,000 ) Actual return on plan assets: Gains relating to assets sold 2,819 6,796 (Losses) gains relating to assets still held at year-end (27,626 ) 126,541 Balance at End of Year $ 601,395 $ 706,202 |
Supplemental Executive Retirement Plan (SERP) [Member] | |
Defined Benefit Plan Disclosure [Line Items] | |
Schedule of Obligation, Asset and Funding Information | SERP As of December 31 (in thousands) 2018 2017 Change in Benefit Obligation Benefit obligation at beginning of year $ 110,082 $ 106,526 Service cost 819 858 Interest cost 3,865 4,233 Amendments 1,028 — Actuarial (gain) loss (7,552 ) 4,041 Benefits paid (5,694 ) (5,576 ) Benefit Obligation at End of Year $ 102,548 $ 110,082 Change in Plan Assets Fair value of assets at beginning of year $ — $ — Employer contributions 5,694 5,576 Benefits paid (5,694 ) (5,576 ) Fair Value of Assets at End of Year $ — $ — Funded Status $ (102,548 ) $ (110,082 ) |
Schedule of Net (Benefit) Costs | SERP Year Ended December 31 (in thousands) 2018 2017 2016 Service cost $ 819 $ 858 $ 985 Interest cost 3,865 4,233 4,384 Amortization of prior service cost 311 455 457 Recognized actuarial loss 2,403 1,774 2,659 Total Cost for the Year $ 7,398 $ 7,320 $ 8,485 Other Changes in Benefit Obligations Recognized in Other Comprehensive Income Current year actuarial (gain) loss $ (7,552 ) $ 4,041 $ 1,120 Current year prior service cost 1,028 — — Amortization of prior service cost (311 ) (455 ) (457 ) Recognized net actuarial loss (2,403 ) (1,774 ) (2,659 ) Total Recognized in Other Comprehensive Income (Before Tax Effects) $ (9,238 ) $ 1,812 $ (1,996 ) Total Recognized in Total Cost and Other Comprehensive Income (Before Tax Effects) $ (1,840 ) $ 9,132 $ 6,489 |
Other Postretirement Plans [Member] | |
Defined Benefit Plan Disclosure [Line Items] | |
Schedule of Obligation, Asset and Funding Information | The following table sets forth obligation, asset and funding information for the Company’s other postretirement plans: Postretirement Plans As of December 31 (in thousands) 2018 2017 Change in Benefit Obligation Benefit obligation at beginning of year $ 22,785 $ 24,171 Service cost 892 1,028 Interest cost 620 779 Amendments (12,473 ) — Actuarial gain (2,519 ) (2,830 ) Acquisitions — 516 Benefits paid, net of Medicare subsidy (782 ) (879 ) Benefit Obligation at End of Year $ 8,523 $ 22,785 Change in Plan Assets Fair value of assets at beginning of year $ — $ — Employer contributions 782 879 Benefits paid, net of Medicare subsidy (782 ) (879 ) Fair Value of Assets at End of Year $ — $ — Funded Status $ (8,523 ) $ (22,785 ) |
Schedule of Amounts Recognized in Balance Sheet | The amounts recognized in the Company’s Consolidated Balance Sheets for its other postretirement plans are as follows: Postretirement Plans As of December 31 (in thousands) 2018 2017 Current liability $ (1,399 ) $ (1,920 ) Noncurrent liability (7,124 ) (20,865 ) Recognized Liability $ (8,523 ) $ (22,785 ) |
Schedule of Estimated Benefit Payments | At December 31, 2018 , future estimated benefit payments are as follows: (in thousands) Postretirement Plans 2019 $ 1,399 2020 $ 1,273 2021 $ 1,083 2022 $ 1,015 2023 $ 856 2024–2028 $ 2,308 |
Schedule of Net (Benefit) Costs | The total (benefit) cost arising from the Company’s other postretirement plans consists of the following components: Postretirement Plans Year Ended December 31 (in thousands) 2018 2017 2016 Service cost $ 892 $ 1,028 $ 1,386 Interest cost 620 779 1,230 Amortization of prior service credit (1,408 ) (148 ) (335 ) Recognized actuarial gain (3,783 ) (3,891 ) (1,502 ) Net Periodic (Benefit) Cost for the Year (3,679 ) (2,232 ) 779 Curtailment (3,380 ) — — Total (Benefit) Cost for the Year $ (7,059 ) $ (2,232 ) $ 779 Other Changes in Benefit Obligations Recognized in Other Comprehensive Income Current year actuarial gain $ (2,519 ) $ (2,830 ) $ (14,984 ) Current year prior service credit (12,473 ) — — Amortization of prior service credit 1,408 148 335 Recognized actuarial gain 3,783 3,891 1,502 Curtailment and settlement 3,380 — — Total Recognized in Other Comprehensive Income (Before Tax Effects) $ (6,421 ) $ 1,209 $ (13,147 ) Total Recognized in (Benefit) Cost and Other Comprehensive Income (Before Tax Effects) $ (13,480 ) $ (1,023 ) $ (12,368 ) |
Schedule of Amounts Recognized in Accumulated Other Comprehensive Income (Loss) | AOCI included the following components of unrecognized net periodic benefit for the postretirement plans: As of December 31 (in thousands) 2018 2017 Unrecognized actuarial gain $ (22,861 ) $ (24,125 ) Unrecognized prior service credit (7,863 ) (178 ) Gross Amount (30,724 ) (24,303 ) Deferred tax liability 8,295 6,561 Net Amount $ (22,429 ) $ (17,742 ) |
Other Non-Operating Income (E_2
Other Non-Operating Income (Expense) (Tables) | 12 Months Ended |
Dec. 31, 2018 | |
Other Nonoperating Income (Expense) [Abstract] | |
Summary of Other Non-Operating Income (Expense) | A summary of non-operating income (expense) is as follows: Year Ended December 31 (in thousands) 2018 2017 2016 Loss on guarantor obligations $ (17,518 ) $ — $ — Net gain on cost method investments 11,663 — — Net gain (loss) on sales of businesses 8,157 (569 ) 18,931 Foreign currency (loss) gain, net (3,844 ) 3,310 (39,890 ) Gain on sale of cost method investments 2,845 16 794 Impairment of cost method investments (2,697 ) (200 ) (29,365 ) Net gain on sale of property, plant and equipment 2,539 — 34,072 Gain on formation of a joint venture — — 3,232 Net losses on sales or write-down of marketable equity securities — — (1,791 ) Other, net 958 1,684 1,375 Total Other Non-Operating Income (Expense) $ 2,103 $ 4,241 $ (12,642 ) |
Accumulated Other Comprehensi_2
Accumulated Other Comprehensive Income (Loss) (Tables) | 12 Months Ended |
Dec. 31, 2018 | |
Accumulated Other Comprehensive Income (Loss), Net of Tax [Abstract] | |
Summary of Other Comprehensive Income (Loss) | The other comprehensive (loss) income consists of the following components: Year Ended December 31, 2018 Before-Tax Income After-Tax (in thousands) Amount Tax Amount Foreign currency translation adjustments: Translation adjustments arising during the year $ (35,584 ) $ — $ (35,584 ) Pension and other postretirement plans: Actuarial loss (101,013 ) 27,273 (73,740 ) Prior service credit 4,262 (1,151 ) 3,111 Amortization of net actuarial gain included in net income (11,349 ) 3,064 (8,285 ) Amortization of net prior service credit included in net income (947 ) 256 (691 ) Curtailments and settlements included in net income (30,267 ) 8,172 (22,095 ) (139,314 ) 37,614 (101,700 ) Cash flow hedge: Gain for the year 551 (104 ) 447 Other Comprehensive Loss $ (174,347 ) $ 37,510 $ (136,837 ) Year Ended December 31, 2017 Before-Tax Income After-Tax (in thousands) Amount Tax Amount Foreign currency translation adjustments: Translation adjustments arising during the year $ 33,175 $ — $ 33,175 Adjustment for sale of a business with foreign operations 137 — 137 33,312 — 33,312 Unrealized gains on available-for-sale securities: Unrealized gains for the year 112,086 (44,834 ) 67,252 Pension and other postretirement plans: Actuarial gain 179,674 (48,511 ) 131,163 Prior service cost (75 ) 20 (55 ) Amortization of net actuarial gain included in net income (6,527 ) 2,612 (3,915 ) Amortization of net prior service cost included in net income 477 (191 ) 286 173,549 (46,070 ) 127,479 Cash flow hedge: Gain for the year 112 (19 ) 93 Other Comprehensive Income $ 319,059 $ (90,923 ) $ 228,136 Year Ended December 31, 2016 Before-Tax Income After-Tax (in thousands) Amount Tax Amount Foreign currency translation adjustments: Translation adjustments arising during the year $ (22,149 ) $ — $ (22,149 ) Unrealized gains on available-for-sale securities: Unrealized gains for the year 55,507 (22,203 ) 33,304 Reclassification adjustment for realization of loss on sale of available-for-sale securities included in net income 1,879 (752 ) 1,127 57,386 (22,955 ) 34,431 Pension and other postretirement plans: Actuarial loss (133,915 ) 53,566 (80,349 ) Amortization of net actuarial loss included in net income 1,157 (463 ) 694 Amortization of net prior service cost included in net income 419 (167 ) 252 Curtailments and settlements included in net income (17,993 ) 7,197 (10,796 ) (150,332 ) 60,133 (90,199 ) Cash flow hedge: Loss for the year (334 ) 57 (277 ) Other Comprehensive Loss $ (115,429 ) $ 37,235 $ (78,194 ) |
Summary of Changes in Accumulated Other Comprehensive Income (Loss) | The accumulated balances related to each component of other comprehensive income (loss) 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 As of December 31, 2016 $ (26,998 ) $ 92,931 $ 170,830 $ (277 ) $ 236,486 Other comprehensive income (loss) before reclassifications 33,175 67,252 131,108 (29 ) 231,506 Net amount reclassified from accumulated other comprehensive income 137 — (3,629 ) 122 (3,370 ) Net other comprehensive income 33,312 67,252 127,479 93 228,136 Reclassification of stranded tax effects to retained earnings as a result of tax reform — 34,706 36,227 — 70,933 As of December 31, 2017 6,314 194,889 334,536 (184 ) 535,555 Reclassification of unrealized gains on available-for-sale securities to retained earnings as a result of adoption of new guidance — (194,889 ) — — (194,889 ) Other comprehensive (loss) income before reclassifications (35,584 ) — (70,629 ) 579 (105,634 ) Net amount reclassified from accumulated other comprehensive income — — (31,071 ) (132 ) (31,203 ) Net other comprehensive (loss) income (35,584 ) — (101,700 ) 447 (136,837 ) As of December 31, 2018 $ (29,270 ) $ — $ 232,836 $ 263 $ 203,829 |
Summary of Amounts and Line Items of Reclassifications out of Accumulated Other Comprehensive Income (Loss) | The amounts and line items of reclassifications out of Accumulated Other Comprehensive Income are as follows: Year Ended December 31 Affected Line Item in the Consolidated Statements of Operations (in thousands) 2018 2017 2016 Foreign Currency Translation Adjustments: Adjustment for sales of businesses with foreign operations $ — $ 137 $ — Other income (expense), net Unrealized Gains on Available-for-Sale Securities: Realized loss for the year — — 1,879 Other income (expense), net — — (752 ) Provision for (benefit from) income taxes — — 1,127 Net of tax Pension and Other Postretirement Plans: Amortization of net actuarial (gain) loss (11,349 ) (6,527 ) 1,157 (1) Amortization of net prior service (credit) cost (947 ) 477 419 (1) Curtailment and settlement gains (30,267 ) — (17,993 ) (1) (42,563 ) (6,050 ) (16,417 ) Before tax 11,492 2,421 6,567 Provision for (benefit from) income taxes (31,071 ) (3,629 ) (9,850 ) Net of tax Cash Flow Hedge (163 ) 152 16 Interest expense 31 (30 ) (3 ) Provision for (benefit from) income taxes (132 ) 122 13 Net of tax Total reclassification for the year $ (31,203 ) $ (3,370 ) $ (8,710 ) Net of tax ___________ _ (1) These accumulated other comprehensive income components are included in the computation of net periodic pension and postretirement plan cost (see Note 14) and are included in non-operating pension and postretirement benefit income in the Company’s Consolidated Statements of Operations. |
Leases and Other Commitments (T
Leases and Other Commitments (Tables) | 12 Months Ended |
Dec. 31, 2018 | |
Leases And Other Commitments [Abstract] | |
Schedule of Future Minimum Rental Payments for Operating Leases | At December 31, 2018 , future minimum rental payments under noncancelable operating leases approximate the following: (in thousands) 2019 $ 101,009 2020 84,945 2021 72,031 2022 53,709 2023 47,091 Thereafter 115,948 $ 474,733 |
Business Segments (Tables)
Business Segments (Tables) | 12 Months Ended |
Dec. 31, 2018 | |
Segment Reporting Information [Line Items] | |
Summary of Segment Reporting Information, by Operating Segment | Company information broken down by operating segment and education division: Year Ended December 31 (in thousands) 2018 2017 2016 Operating Revenues Education $ 1,451,015 $ 1,516,776 $ 1,598,461 Television broadcasting 505,549 409,916 409,718 Healthcare 149,275 154,202 146,962 Other businesses 590,227 511,003 326,888 Corporate office — — — Intersegment elimination (100 ) (51 ) (139 ) $ 2,695,966 $ 2,591,846 $ 2,481,890 Income (Loss) from Operations Education $ 97,136 $ 77,687 $ 95,321 Television broadcasting 210,533 139,258 202,863 Healthcare (8,401 ) (2,569 ) 2,799 Other businesses (246 ) (19,263 ) (24,901 ) Corporate office (52,861 ) (58,710 ) (53,213 ) $ 246,161 $ 136,403 $ 222,869 Equity in Earnings (Losses) of Affiliates, Net 14,473 (3,249 ) (7,937 ) Interest Expense, Net (32,549 ) (27,305 ) (32,297 ) Debt Extinguishment Costs (11,378 ) — — Non-Operating Pension and Postretirement Benefit Income, Net 120,541 72,699 80,665 Loss on Marketable Equity Securities, net (15,843 ) — — Other Income (Expense), Net 2,103 4,241 (12,642 ) Income Before Income Taxes $ 323,508 $ 182,789 $ 250,658 Depreciation of Property, Plant and Equipment Education $ 28,099 $ 32,906 $ 41,187 Television broadcasting 13,204 12,179 9,942 Healthcare 2,577 4,583 2,805 Other businesses 11,835 11,723 9,570 Corporate office 1,007 1,118 1,116 $ 56,722 $ 62,509 $ 64,620 Amortization of Intangible Assets and Impairment of Goodwill and Other Long-Lived Assets Education $ 9,362 $ 5,162 $ 7,516 Television broadcasting 5,632 6,349 251 Healthcare 14,855 7,905 6,701 Other businesses 25,674 31,385 13,806 Corporate office — — — $ 55,523 $ 50,801 $ 28,274 Pension Service Cost Education $ 8,753 $ 9,720 $ 11,803 Television broadcasting 2,188 1,942 1,714 Healthcare 573 665 — Other businesses 1,373 1,125 1,118 Corporate office 5,334 5,235 5,826 $ 18,221 $ 18,687 $ 20,461 Capital Expenditures Education $ 54,159 $ 27,520 $ 26,497 Television broadcasting 27,013 16,802 27,453 Healthcare 1,741 2,987 2,954 Other businesses 15,154 9,771 13,093 Corporate office — — 715 $ 98,067 $ 57,080 $ 70,712 Asset information for the Company’s business segments is as follows: As of December 31 (in thousands) 2018 2017 Identifiable Assets Education $ 1,568,747 $ 1,592,097 Television broadcasting 452,853 455,884 Healthcare 108,596 129,856 Other businesses 827,113 855,399 Corporate office 162,971 182,905 $ 3,120,280 $ 3,216,141 Investments in Marketable Equity Securities 496,390 536,315 Investments in Affiliates 143,813 128,590 Prepaid Pension Cost 1,003,558 1,056,777 Total Assets $ 4,764,041 $ 4,937,823 |
Education [Member] | |
Segment Reporting Information [Line Items] | |
Schedule of Restructuring Costs | Across all Kaplan businesses, restructuring costs of $9.1 million and $11.9 million were recorded in 2017 and 2016 , respectively, as follows: Year Ended December 31 (in thousands) 2017 2016 Accelerated depreciation $ 339 $ 1,815 Lease obligation losses — 2,694 Severance 6,099 5,902 Other 2,627 1,441 $ 9,065 $ 11,852 |
Summary of Segment Reporting Information, by Operating Segment | The Company’s education division comprises the following operating segments: Year Ended December 31 (in thousands) 2018 2017 2016 Operating Revenues Kaplan international $ 719,982 $ 697,999 $ 696,362 Higher education 342,085 431,425 501,784 Test preparation 256,102 273,298 286,556 Professional (U.S.) 134,187 115,839 115,263 Kaplan corporate and other 1,142 294 214 Intersegment elimination (2,483 ) (2,079 ) (1,718 ) $ 1,451,015 $ 1,516,776 $ 1,598,461 Income (Loss) from Operations Kaplan international $ 70,315 $ 51,623 $ 48,398 Higher education 15,217 16,719 39,196 Test preparation 19,096 11,507 9,599 Professional (U.S.) 28,608 27,558 27,436 Kaplan corporate and other (36,064 ) (29,863 ) (29,279 ) Intersegment elimination (36 ) 143 (29 ) $ 97,136 $ 77,687 $ 95,321 Depreciation of Property, Plant and Equipment Kaplan international $ 15,755 $ 14,892 $ 17,523 Higher education 4,826 9,117 13,816 Test preparation 3,941 5,286 6,287 Professional (U.S.) 3,096 3,041 3,006 Kaplan corporate and other 481 570 555 $ 28,099 $ 32,906 $ 41,187 Amortization of Intangible Assets $ 9,362 $ 5,162 $ 7,516 Pension Service Cost Kaplan international $ 298 $ 264 $ 268 Higher education 4,310 5,269 6,544 Test preparation 2,611 2,755 3,072 Professional (U.S.) 1,162 913 1,076 Kaplan corporate and other 372 519 843 $ 8,753 $ 9,720 $ 11,803 Capital Expenditures Kaplan international $ 44,469 $ 21,667 $ 16,252 Higher education 4,045 2,158 3,140 Test preparation 681 1,038 4,672 Professional (U.S.) 4,845 2,475 2,224 Kaplan corporate and other 119 182 209 $ 54,159 $ 27,520 $ 26,497 Asset information for the Company’s education division is as follows: As of December 31 (in thousands) 2018 2017 Identifiable Assets Kaplan international $ 1,101,040 $ 1,115,919 Higher education 126,752 231,986 Test preparation 145,308 130,938 Professional (U.S.) 166,916 91,630 Kaplan corporate and other 28,731 21,624 $ 1,568,747 $ 1,592,097 |
Summary of Quarterly Operatin_2
Summary of Quarterly Operating Results and Comprehensive Income (Loss) (Unaudited) (Tables) | 12 Months Ended |
Dec. 31, 2018 | |
Quarterly Financial Information Disclosure [Abstract] | |
Schedule of Quarterly Results of Operations and Comprehensive Income (Loss) | Quarterly results of operations and comprehensive income (loss) for the year ended December 31, 2018 , is as follows: (in thousands, except per share amounts) First Quarter Second Quarter Third Quarter Fourth Quarter Operating Revenues $ 659,436 $ 672,677 $ 674,766 $ 689,087 Operating Costs and Expenses Operating 365,151 440,655 448,920 432,706 Selling, general and administrative 225,045 141,378 131,081 152,624 Depreciation of property, plant and equipment 14,642 13,619 13,648 14,813 Amortization of intangible assets 10,384 11,399 12,269 13,362 Impairment of goodwill and other long-lived assets — — 8,109 — 615,222 607,051 614,027 613,505 Income from Operations 44,214 65,626 60,739 75,582 Equity in earnings of affiliates, net 2,579 931 9,537 1,426 Interest income 1,372 1,901 611 1,469 Interest expense (8,071 ) (17,165 ) (6,135 ) (6,531 ) Debt extinguishment costs — (11,378 ) — — Non-operating pension and postretirement benefit income, net 21,386 23,041 22,214 53,900 (Loss) gain on marketable equity securities, net (14,102 ) (2,554 ) 44,962 (44,149 ) Other income (expense), net 9,187 2,333 3,142 (12,559 ) Income Before Income Taxes 56,565 62,735 135,070 69,138 Provision for Income Taxes 13,600 16,100 10,000 12,400 Net Income 42,965 46,635 125,070 56,738 Net Income Attributable to Noncontrolling Interests (74 ) (69 ) (6 ) (53 ) Net Income Attributable to Graham Holdings Company Common Stockholders $ 42,891 $ 46,566 $ 125,064 $ 56,685 Quarterly Comprehensive Income (Loss) $ 53,703 $ 13,345 $ 119,862 $ (52,541 ) Per Share Information Attributable to Graham Holdings Company Common Stockholders Basic net income per common share $ 7.84 $ 8.69 $ 23.43 $ 10.69 Basic average number of common shares outstanding 5,436 5,325 5,302 5,270 Diluted net income per common share $ 7.78 $ 8.63 $ 23.28 $ 10.61 Diluted average number of common shares outstanding 5,473 5,362 5,337 5,309 The sum of the four quarters may not necessarily be equal to the annual amounts reported in the Consolidated Statements of Operations due to rounding. Quarterly results of operations and comprehensive income for the year ended December 31, 2017 , is as follows: (in thousands, except per share amounts) First Quarter Second Quarter Third Quarter Fourth Quarter Operating Revenues $ 582,717 $ 676,087 $ 657,225 $ 675,817 Operating Costs and Expenses Operating 325,687 381,747 374,987 371,922 Selling, general and administrative 225,289 208,973 228,051 225,477 Depreciation of property, plant and equipment 14,652 15,871 16,002 15,984 Amortization of intangible assets 6,836 10,531 10,923 12,897 Impairment of goodwill and other long-lived assets — 9,224 312 78 572,464 626,346 630,275 626,358 Income from Operations 10,253 49,741 26,950 49,459 Equity in earnings (losses) of affiliates, net 649 1,331 (532 ) (4,697 ) Interest income 1,363 1,173 861 3,184 Interest expense (8,129 ) (9,035 ) (8,619 ) (8,103 ) Non-operating pension and postretirement benefit income, net 18,801 18,620 17,621 17,657 Other income (expense), net 849 4,069 1,963 (2,640 ) Income Before Income Taxes 23,786 65,899 38,244 54,860 Provision for (Benefit From) Income Taxes 2,700 23,900 13,400 (159,700 ) Net Income 21,086 41,999 24,844 214,560 Net Income Attributable to Noncontrolling Interests — (3 ) (60 ) (382 ) Net Income Attributable to Graham Holdings Company Common Stockholders $ 21,086 $ 41,996 $ 24,784 $ 214,178 Quarterly Comprehensive Income $ 39,368 $ 59,135 $ 64,029 $ 367,648 Per Share Information Attributable to Graham Holdings Company Common Stockholders Basic net income per common share $ 3.77 $ 7.51 $ 4.45 $ 38.76 Basic average number of common shares outstanding 5,535 5,539 5,518 5,473 Diluted net income per common share $ 3.75 $ 7.46 $ 4.42 $ 38.52 Diluted average number of common shares outstanding 5,569 5,577 5,554 5,509 The sum of the four quarters may not necessarily be equal to the annual amounts reported in the Consolidated Statements of Operations due to rounding. |
Schedule Of Quarterly Impact From Certain Items | Quarterly impact from certain items in 2018 and 2017 (after-tax and diluted EPS amounts): First Quarter Second Quarter Third Quarter Fourth Quarter 2018 Intangible asset impairment charge of $5.8 million at the healthcare business $ (1.08 ) A $3.0 million reduction to operating expenses from property, plant, and equipment gains in connection with the spectrum repacking mandate of the FCC ($0.2 million, $0.6 million, $0.8 million and $1.4 million in the first, second, third and fourth quarters, respectively) $ 0.04 $ 0.11 $ 0.14 $ 0.26 Interest expense of $6.2 million related to the settlement of a mandatorily redeemable noncontrolling interest $ (1.14 ) Debt extinguishment costs of $8.6 million $ (1.60 ) A $22.2 million settlement gain related to a bulk lump sum pension offering and curtailment gain related to changes in the Company’s postretirement healthcare benefit plan $ 4.11 Losses, net, of $12.6 million on marketable equity securities ($10.7 million loss, $1.9 million loss, $33.6 million gain, and $33.6 million loss in the first, second, third and fourth quarters, respectively) $ (1.94 ) $ (0.36 ) $ 6.26 $ (6.28 ) Non-operating gain, net, of $5.7 million from sales, write-ups and impairments of cost method and equity method investments, and related to sales of land and businesses, including losses on guarantor lease obligations ($3.6 million gain, $1.8 million gain, $8.0 million gain, and $7.7 million loss in the first, second, third and fourth quarters, respectively) $ 0.65 $ 0.34 $ 1.48 $ (1.43 ) Gain of $1.8 million on the Kaplan University Transaction $ 0.33 Losses, net, of $2.9 million for non-operating foreign currency (losses) gains ($0.1 million gain, $1.7 million loss, $0.1 million loss, and $1.2 million loss in the first, second, third and fourth quarters, respectively) $ 0.02 $ (0.32 ) $ (0.02 ) $ (0.23 ) A nonrecurring discrete $17.8 million deferred state tax benefit related to the release of valuation allowances $ 3.31 Income tax benefit of $1.8 million related to stock compensation $ 0.33 2017 Charges of $6.3 million related to restructuring and non-operating Separation Incentive Program charges at the education division ($0.3 million, $0.4 million, $1.1 million and $4.5 million in the first, second, third and fourth quarters, respectively) $ (0.05 ) $ (0.06 ) $ (0.20 ) $ (0.81 ) Goodwill and long-lived assets impairment charges of $5.8 million at other businesses $ (1.03 ) Gains, net, of $2.1 million for non-operating foreign currency gains (losses) ($1.1 million gain, $2.2 million gain, $0.9 million gain and $2.1 million loss in the first, second, third and fourth quarters, respectively) $ 0.19 $ 0.39 $ 0.16 $ (0.37 ) Net deferred tax benefits of $177.5 million related to the Tax Act $ 31.68 Income tax benefit of $5.9 million related to stock compensation $ 1.06 |
Organization and Nature of Op_2
Organization and Nature of Operations (Narrative) (Details) | Dec. 31, 2018TelevisionStationCategory |
Education [Member] | |
Product Information [Line Items] | |
Number of education business categories | Category | 4 |
Television Broadcasting [Member] | |
Product Information [Line Items] | |
Number of television broadcast stations owned | 7 |
JacksonvilleFL [Member] | Television Broadcasting [Member] | |
Product Information [Line Items] | |
Number of television broadcast stations owned | 2 |
Summary of Significant Accoun_4
Summary of Significant Accounting Policies (Narrative) (Details) | Mar. 22, 2018 | Mar. 22, 2018 | Dec. 31, 2018business | Dec. 31, 2018business | Jun. 30, 2018 |
Summary of Significant Accounting Policies [Line Items] | |||||
Maximum Term of Contract | 1 year | ||||
Graham Healthcare Group [Member] | Graham Holdings Company [Member] | |||||
Summary of Significant Accounting Policies [Line Items] | |||||
Noncontrolling Interest, Ownership Percentage by Parent | 90.00% | ||||
Hoover Treated Wood Products [Member] | Graham Holdings Company [Member] | |||||
Summary of Significant Accounting Policies [Line Items] | |||||
Noncontrolling Interest, Ownership Percentage by Parent | 97.72% | 97.72% | |||
Transferred over Time [Member] | |||||
Summary of Significant Accounting Policies [Line Items] | |||||
Percentage of Revenue | 80.00% | ||||
Kaplan International [Member] | |||||
Summary of Significant Accounting Policies [Line Items] | |||||
Number of Performance Obligations | 1 | ||||
Number of business lines | 1 | 1 | |||
Higher Education [Member] | |||||
Summary of Significant Accounting Policies [Line Items] | |||||
Number of Performance Obligations | 1 | 1 | |||
Number of Performance Obligations In Contract With Tuition Cap | 2 | ||||
Transition and Operations Support Agreement Initial Term | 30 years | ||||
Television Broadcasting [Member] | Advertising Revenue [Member] | |||||
Summary of Significant Accounting Policies [Line Items] | |||||
Number of Performance Obligations | 1 | ||||
Revenue Recognition, Maximum Period between Recognition of Revenue and Receipt of Payment | 60 days | ||||
Television Broadcasting [Member] | Retransmission Revenue [Member] | |||||
Summary of Significant Accounting Policies [Line Items] | |||||
Number of Performance Obligations | 1 | ||||
Revenue Recognition, Maximum Period between Recognition of Revenue and Receipt of Payment | 60 days | ||||
Manufacturing [Member] | |||||
Summary of Significant Accounting Policies [Line Items] | |||||
Number of business lines | 4 | 4 | |||
Revenue Recognition, Maximum Period between Recognition of Revenue and Receipt of Payment | 90 days | ||||
Manufacturing [Member] | Transferred over Time [Member] | |||||
Summary of Significant Accounting Policies [Line Items] | |||||
Percentage of Revenue | 27.00% | ||||
Health Care [Member] | |||||
Summary of Significant Accounting Policies [Line Items] | |||||
Number of Performance Obligations | 1 | ||||
Revenue Recognition, Maximum Period between Recognition of Revenue and Receipt of Payment | 60 days | ||||
Health Care [Member] | Other Healthcare Services [Member] | |||||
Summary of Significant Accounting Policies [Line Items] | |||||
Number of Performance Obligations | 1 | ||||
SocialCode [Member] | |||||
Summary of Significant Accounting Policies [Line Items] | |||||
Number of Performance Obligations | 1 | ||||
Revenue Recognition, Maximum Period between Recognition of Revenue and Receipt of Payment | 100 days | ||||
Minimum [Member] | Machinery and Equipment [Member] | |||||
Summary of Significant Accounting Policies [Line Items] | |||||
Property, Plant and Equipment, Useful Life (in years) | 3 years | ||||
Minimum [Member] | Building [Member] | |||||
Summary of Significant Accounting Policies [Line Items] | |||||
Property, Plant and Equipment, Useful Life (in years) | 20 years | ||||
Maximum [Member] | |||||
Summary of Significant Accounting Policies [Line Items] | |||||
Investment maturity length | 3 months | ||||
Amortized Intangible Assets, Useful Life (in years) | 10 years | ||||
Maximum [Member] | Machinery and Equipment [Member] | |||||
Summary of Significant Accounting Policies [Line Items] | |||||
Property, Plant and Equipment, Useful Life (in years) | 20 years | ||||
Maximum [Member] | Building [Member] | |||||
Summary of Significant Accounting Policies [Line Items] | |||||
Property, Plant and Equipment, Useful Life (in years) | 50 years |
Summary of Significant Accoun_5
Summary of Significant Accounting Policies (Recently Adopted and Issued Accounting Pronouncements) (Narrative) (Details) - USD ($) $ in Thousands | 3 Months Ended | 12 Months Ended | ||||||||||
Dec. 31, 2018 | Sep. 30, 2018 | Jun. 30, 2018 | Mar. 31, 2018 | Dec. 31, 2017 | Sep. 30, 2017 | Jun. 30, 2017 | Mar. 31, 2017 | Dec. 31, 2018 | Dec. 31, 2017 | Dec. 31, 2016 | Jan. 01, 2018 | |
New Accounting Pronouncements or Change in Accounting Principle [Line Items] | ||||||||||||
Revenues | $ 689,087 | $ 674,766 | $ 672,677 | $ 659,436 | $ 675,817 | $ 657,225 | $ 676,087 | $ 582,717 | $ 2,695,966 | $ 2,591,846 | $ 2,481,890 | |
Costs and Expenses | 613,505 | $ 614,027 | $ 607,051 | 615,222 | 626,358 | $ 630,275 | $ 626,346 | $ 572,464 | 2,449,805 | 2,455,443 | $ 2,259,021 | |
Retained earnings | $ 6,236,125 | 5,791,724 | 6,236,125 | 5,791,724 | $ 5,798,647 | |||||||
Cumulative Effect of New Accounting Principle in Period of Adoption | 6,923 | |||||||||||
Retained Earnings [Member] | ||||||||||||
New Accounting Pronouncements or Change in Accounting Principle [Line Items] | ||||||||||||
Cumulative Effect of New Accounting Principle in Period of Adoption | 201,812 | |||||||||||
Retained Earnings [Member] | Accounting Standards Update 2016-01 [Member] | ||||||||||||
New Accounting Pronouncements or Change in Accounting Principle [Line Items] | ||||||||||||
Cumulative Effect of New Accounting Principle in Period of Adoption | $ 194,900 | |||||||||||
Difference between Revenue Guidance in Effect before and after Topic 606 [Member] | Accounting Standards Update 2014-09 [Member] | ||||||||||||
New Accounting Pronouncements or Change in Accounting Principle [Line Items] | ||||||||||||
Retained earnings | $ 6,923 | |||||||||||
Calculated under Revenue Guidance in Effect before Topic 606 [Member] | Accounting Standards Update 2014-09 [Member] | ||||||||||||
New Accounting Pronouncements or Change in Accounting Principle [Line Items] | ||||||||||||
Revenues | (1,700) | |||||||||||
Costs and Expenses | (600) | |||||||||||
Retained earnings | $ 5,791,724 | $ 5,791,724 | ||||||||||
Kaplan University Transaction [Member] | Education [Member] | Higher Education [Member] | Calculated under Revenue Guidance in Effect before Topic 606 [Member] | Accounting Standards Update 2014-09 [Member] | ||||||||||||
New Accounting Pronouncements or Change in Accounting Principle [Line Items] | ||||||||||||
Revenues | $ (4,500) |
Summary of Significant Accoun_6
Summary of Significant Accounting Policies Summary of Significant Accounting Policies (Recently Adopted and Issued Accounting Pronouncements) (Details 1) - USD ($) $ in Thousands | Dec. 31, 2018 | Jan. 01, 2018 | Dec. 31, 2017 |
Item Effected [Line Items] | |||
Accounts receivable, net | $ 582,280 | $ 622,461 | $ 620,319 |
Inventories and contracts in progress | 69,477 | 60,858 | 60,612 |
Other current assets | 82,723 | 72,596 | 66,253 |
Accounts payable and accrued liabilities | 486,578 | 526,411 | 526,323 |
Deferred revenue | 308,728 | 339,108 | 339,454 |
Deferred income taxes | 322,421 | 364,767 | 362,701 |
Retained earnings | $ 6,236,125 | 5,798,647 | 5,791,724 |
Accounting Standards Update 2014-09 [Member] | Calculated under Revenue Guidance in Effect before Topic 606 [Member] | |||
Item Effected [Line Items] | |||
Accounts receivable, net | 620,319 | ||
Inventories and contracts in progress | 60,612 | ||
Other current assets | 66,253 | ||
Accounts payable and accrued liabilities | 526,323 | ||
Deferred revenue | 339,454 | ||
Deferred income taxes | 362,701 | ||
Retained earnings | $ 5,791,724 | ||
Accounting Standards Update 2014-09 [Member] | Difference between Revenue Guidance in Effect before and after Topic 606 [Member] | |||
Item Effected [Line Items] | |||
Accounts receivable, net | 2,142 | ||
Inventories and contracts in progress | 246 | ||
Other current assets | 6,343 | ||
Accounts payable and accrued liabilities | 88 | ||
Deferred revenue | (346) | ||
Deferred income taxes | 2,066 | ||
Retained earnings | $ 6,923 |
Summary of Significant Accoun_7
Summary of Significant Accounting Policies (Recently Adopted and Issued Accounting Pronoucements) (Details 2) - USD ($) $ in Thousands | 3 Months Ended | 12 Months Ended | |||||||||
Dec. 31, 2018 | Sep. 30, 2018 | Jun. 30, 2018 | Mar. 31, 2018 | Dec. 31, 2017 | Sep. 30, 2017 | Jun. 30, 2017 | Mar. 31, 2017 | Dec. 31, 2018 | Dec. 31, 2017 | Dec. 31, 2016 | |
Item Effected [Line Items] | |||||||||||
Operating expenses | $ 432,706 | $ 448,920 | $ 440,655 | $ 365,151 | $ 371,922 | $ 374,987 | $ 381,747 | $ 325,687 | $ 1,687,432 | $ 1,454,343 | $ 1,270,030 |
Selling, general and administrative expenses | 152,624 | 131,081 | 141,378 | 225,045 | 225,477 | 228,051 | 208,973 | 225,289 | 650,128 | 887,790 | 896,097 |
Income from Operations | 75,582 | 60,739 | 65,626 | 44,214 | 49,459 | 26,950 | 49,741 | 10,253 | 246,161 | 136,403 | 222,869 |
Non-operating pension and postretirement benefit income, net | 53,900 | 22,214 | 23,041 | 21,386 | 17,657 | 17,621 | 18,620 | 18,801 | 120,541 | 72,699 | 80,665 |
Income Before Income Taxes | $ 69,138 | $ 135,070 | $ 62,735 | $ 56,565 | $ 54,860 | $ 38,244 | $ 65,899 | $ 23,786 | $ 323,508 | 182,789 | 250,658 |
Accounting Standards Update 2017-07 [Member] | |||||||||||
Item Effected [Line Items] | |||||||||||
Operating expenses | 1,454,343 | 1,270,030 | |||||||||
Selling, general and administrative expenses | 887,790 | 896,097 | |||||||||
Income from Operations | 136,403 | 222,869 | |||||||||
Non-operating pension and postretirement benefit income, net | 72,699 | 80,665 | |||||||||
Income Before Income Taxes | 182,789 | 250,658 | |||||||||
Accounting Standards Update 2017-07 [Member] | Previously Reported [Member] | |||||||||||
Item Effected [Line Items] | |||||||||||
Operating expenses | 1,359,842 | 1,180,945 | |||||||||
Selling, general and administrative expenses | 909,592 | 904,517 | |||||||||
Income from Operations | 209,102 | 303,534 | |||||||||
Non-operating pension and postretirement benefit income, net | 0 | 0 | |||||||||
Income Before Income Taxes | 182,789 | 250,658 | |||||||||
Accounting Standards Update 2017-07 [Member] | Restatement Adjustment [Member] | |||||||||||
Item Effected [Line Items] | |||||||||||
Operating expenses | 94,501 | 89,085 | |||||||||
Selling, general and administrative expenses | (21,802) | (8,420) | |||||||||
Income from Operations | (72,699) | (80,665) | |||||||||
Non-operating pension and postretirement benefit income, net | 72,699 | 80,665 | |||||||||
Income Before Income Taxes | $ 0 | $ 0 |
Acquisitions and Dispositions_3
Acquisitions and Dispositions of Businesses (Narrative) (Details) | Jan. 31, 2019USD ($) | Mar. 22, 2018USD ($) | Jan. 31, 2019USD ($)business | Sep. 30, 2018business | Jun. 30, 2018USD ($) | Feb. 28, 2018business | Jan. 31, 2018business | Apr. 30, 2017USD ($) | Jun. 30, 2016USD ($) | Dec. 31, 2018USD ($) | Sep. 30, 2018USD ($) | Jun. 30, 2018USD ($) | Mar. 31, 2018USD ($) | Dec. 31, 2017USD ($)business | Sep. 30, 2017USD ($) | Jun. 30, 2017USD ($) | Mar. 31, 2017USD ($) | Sep. 30, 2018USD ($) | Dec. 31, 2018USD ($)business | Dec. 31, 2017USD ($)business | Dec. 31, 2016USD ($)business | Aug. 31, 2018 | Jul. 31, 2018 | Jul. 12, 2018 | May 31, 2018 | Feb. 28, 2017 | Sep. 30, 2016 | Feb. 29, 2016 | Jan. 31, 2016 |
Business Acquisition [Line Items] | |||||||||||||||||||||||||||||
Cost of acquisition | $ 121,100,000 | $ 318,900,000 | $ 258,000,000 | ||||||||||||||||||||||||||
Pension and other post retirement benefits liabilities | $ 59,100,000 | $ 59,100,000 | |||||||||||||||||||||||||||
Number of businesses acquired | business | 8 | 6 | 5 | ||||||||||||||||||||||||||
Document Fiscal Year Focus | 2,018 | ||||||||||||||||||||||||||||
Payments to Acquire Businesses, Net of Cash Acquired | $ 111,546,000 | $ 299,938,000 | $ 245,084,000 | ||||||||||||||||||||||||||
Acquisition-related costs | $ 1,500,000 | 4,100,000 | 1,500,000 | 4,100,000 | 1,500,000 | ||||||||||||||||||||||||
Goodwill expected to be deductible for income tax purposes | 32,300,000 | 11,000,000 | 32,300,000 | 11,000,000 | 22,200,000 | ||||||||||||||||||||||||
Revenues of acquired companies since acquisition date | 28,800,000 | ||||||||||||||||||||||||||||
Operating loss of acquired companies since acquisition date | (2,900,000) | ||||||||||||||||||||||||||||
Change in redemption value of redeemable noncontrolling interests | 413,000 | (446,000) | (3,026,000) | ||||||||||||||||||||||||||
Gain (Loss) on Disposition of Business | 8,157,000 | (569,000) | 18,931,000 | ||||||||||||||||||||||||||
Interest expense | $ 6,531,000 | $ 6,135,000 | $ 17,165,000 | $ 8,071,000 | $ 8,103,000 | $ 8,619,000 | $ 9,035,000 | $ 8,129,000 | $ 37,902,000 | $ 33,886,000 | $ 35,390,000 | ||||||||||||||||||
Residential Healthcare Group Inc [Member] | |||||||||||||||||||||||||||||
Business Acquisition [Line Items] | |||||||||||||||||||||||||||||
Noncontrolling interest purchased | 20.00% | ||||||||||||||||||||||||||||
Change in redemption value of redeemable noncontrolling interests | $ 3,000,000 | ||||||||||||||||||||||||||||
Redeemable Noncontrolling Interest, Equity, Common, Redemption Value | $ 24,000,000 | ||||||||||||||||||||||||||||
Celtic Healthcare Inc [Member] | |||||||||||||||||||||||||||||
Business Acquisition [Line Items] | |||||||||||||||||||||||||||||
Noncontrolling interest exchanged | 20.00% | ||||||||||||||||||||||||||||
Graham Healthcare Group [Member] | |||||||||||||||||||||||||||||
Business Acquisition [Line Items] | |||||||||||||||||||||||||||||
Change in redemption value of redeemable noncontrolling interests | $ 4,100,000 | ||||||||||||||||||||||||||||
Noncontrolling Interest, Ownership Percentage by Noncontrolling Owners | 10.00% | ||||||||||||||||||||||||||||
Residential And Michigan Hospital Joint Venture [Member] | Residential Healthcare Group Inc [Member] | |||||||||||||||||||||||||||||
Business Acquisition [Line Items] | |||||||||||||||||||||||||||||
Percentage Of Joint Venture Sold | 60.00% | ||||||||||||||||||||||||||||
Ownership percentage of investment in affiliate | 40.00% | ||||||||||||||||||||||||||||
Education [Member] | |||||||||||||||||||||||||||||
Business Acquisition [Line Items] | |||||||||||||||||||||||||||||
Number of businesses acquired | business | 5 | 2 | 3 | ||||||||||||||||||||||||||
Number Of Businesses Disposed | business | 3 | ||||||||||||||||||||||||||||
Gain (Loss) on Disposition of Business | $ 8,200,000 | ||||||||||||||||||||||||||||
Education [Member] | Professional (U.S.) [Member] | College for Financial Planning [Member] | |||||||||||||||||||||||||||||
Business Acquisition [Line Items] | |||||||||||||||||||||||||||||
Percentage of interest acquired | 100.00% | ||||||||||||||||||||||||||||
Education [Member] | Professional (U.S.) [Member] | Professional Publications, Inc. [Member] | |||||||||||||||||||||||||||||
Business Acquisition [Line Items] | |||||||||||||||||||||||||||||
Percentage of interest acquired | 100.00% | ||||||||||||||||||||||||||||
Education [Member] | Kaplan International [Member] | |||||||||||||||||||||||||||||
Business Acquisition [Line Items] | |||||||||||||||||||||||||||||
Number of businesses acquired | business | 1 | ||||||||||||||||||||||||||||
Education [Member] | Kaplan International [Member] | Genesis [Member] | |||||||||||||||||||||||||||||
Business Acquisition [Line Items] | |||||||||||||||||||||||||||||
Percentage of interest acquired | 100.00% | ||||||||||||||||||||||||||||
Education [Member] | Kaplan International [Member] | Red Marker [Member] | |||||||||||||||||||||||||||||
Business Acquisition [Line Items] | |||||||||||||||||||||||||||||
Percentage of interest acquired | 100.00% | ||||||||||||||||||||||||||||
Education [Member] | Kaplan International [Member] | Mander Portman Woodward [Member] | |||||||||||||||||||||||||||||
Business Acquisition [Line Items] | |||||||||||||||||||||||||||||
Percentage of interest acquired | 100.00% | ||||||||||||||||||||||||||||
Education [Member] | Kaplan International [Member] | Osborne Books [Member] | |||||||||||||||||||||||||||||
Business Acquisition [Line Items] | |||||||||||||||||||||||||||||
Percentage of interest acquired | 100.00% | ||||||||||||||||||||||||||||
Education [Member] | Kaplan International [Member] | Kaplan Australia [Member] | |||||||||||||||||||||||||||||
Business Acquisition [Line Items] | |||||||||||||||||||||||||||||
Number Of Businesses Disposed | business | 1 | 1 | |||||||||||||||||||||||||||
Education [Member] | Test Preparation [Member] | |||||||||||||||||||||||||||||
Business Acquisition [Line Items] | |||||||||||||||||||||||||||||
Number Of Businesses Disposed | business | 1 | ||||||||||||||||||||||||||||
Education [Member] | Higher Education [Member] | Kaplan University Transaction [Member] | |||||||||||||||||||||||||||||
Business Acquisition [Line Items] | |||||||||||||||||||||||||||||
Transition and Operations Support Agreement Initial Term | 30 years | ||||||||||||||||||||||||||||
Transition and Operations Support Agreement Buy-Out Option Eligible Year | 6 years | ||||||||||||||||||||||||||||
Transition and Operations Support Agreement Renewal Periods | 5 years | ||||||||||||||||||||||||||||
Gain (Loss) on Disposition of Business | $ 4,300,000 | 4,300,000 | |||||||||||||||||||||||||||
Gain Related to Contingent Consideration | $ 1,900,000 | $ 1,900,000 | |||||||||||||||||||||||||||
First Five Years of Transition and Operations Support Agreement | 5 years | ||||||||||||||||||||||||||||
Number of Consecutive Years of Purdue University Global Cash Operating Losses | 3 years | ||||||||||||||||||||||||||||
Education [Member] | Higher Education [Member] | Minimum [Member] | Kaplan University Transaction [Member] | |||||||||||||||||||||||||||||
Business Acquisition [Line Items] | |||||||||||||||||||||||||||||
Annual Purdue University Global Cash Operating Losses | $ 25,000,000 | ||||||||||||||||||||||||||||
Aggregate Purdue University Global Cash Operating Losses | $ 75,000,000 | ||||||||||||||||||||||||||||
Education [Member] | Higher Education [Member] | Kaplan [Member] | Kaplan University Transaction [Member] | |||||||||||||||||||||||||||||
Business Acquisition [Line Items] | |||||||||||||||||||||||||||||
Percentage of Cost Efficiencies | 20.00% | ||||||||||||||||||||||||||||
Education [Member] | Higher Education [Member] | Purdue University Global [Member] | Kaplan University Transaction [Member] | |||||||||||||||||||||||||||||
Business Acquisition [Line Items] | |||||||||||||||||||||||||||||
Percentage of Cost Efficiencies | 20.00% | ||||||||||||||||||||||||||||
Advance Related To Kaplan University Transaction | $ 20,000,000 | ||||||||||||||||||||||||||||
Education [Member] | Higher Education [Member] | After June 30, 2048 [Member] | Kaplan [Member] | Kaplan University Transaction [Member] | |||||||||||||||||||||||||||||
Business Acquisition [Line Items] | |||||||||||||||||||||||||||||
Kaplan University Transaction Termination Fee | 75.00% | ||||||||||||||||||||||||||||
Purdue University Global Final Payment Note Duration | 10 years | ||||||||||||||||||||||||||||
Education [Member] | Higher Education [Member] | After June 30, 2024 [Member] | Kaplan [Member] | Kaplan University Transaction [Member] | |||||||||||||||||||||||||||||
Business Acquisition [Line Items] | |||||||||||||||||||||||||||||
Kaplan University Transaction Termination Fee | 125.00% | ||||||||||||||||||||||||||||
Purdue University Global Final Payment Note Duration | 10 years | ||||||||||||||||||||||||||||
Education [Member] | Higher Education [Member] | After June 30, 2023 [Member] | Purdue University Global [Member] | Kaplan University Transaction [Member] | |||||||||||||||||||||||||||||
Business Acquisition [Line Items] | |||||||||||||||||||||||||||||
Percentage of Revenue Remaining To Be Paid | 10.00% | ||||||||||||||||||||||||||||
Education [Member] | Higher Education [Member] | After June 30, 2027 [Member] | Kaplan [Member] | Kaplan University Transaction [Member] | |||||||||||||||||||||||||||||
Business Acquisition [Line Items] | |||||||||||||||||||||||||||||
Kaplan Share of Purdue University Global Revenue | 12.50% | ||||||||||||||||||||||||||||
Education [Member] | Higher Education [Member] | July 1, 2022 through June 30, 2027 [Member] | Kaplan [Member] | Kaplan University Transaction [Member] | |||||||||||||||||||||||||||||
Business Acquisition [Line Items] | |||||||||||||||||||||||||||||
Kaplan Share of Purdue University Global Revenue | 13.00% | ||||||||||||||||||||||||||||
Education [Member] | Higher Education [Member] | March 22, 2018 through June 30, 2022 [Member] | Kaplan [Member] | Kaplan University Transaction [Member] | |||||||||||||||||||||||||||||
Business Acquisition [Line Items] | |||||||||||||||||||||||||||||
Kaplan Share of Purdue University Global Revenue | 12.50% | ||||||||||||||||||||||||||||
Education [Member] | Higher Education [Member] | March 22, 2018 through June 30, 2023 [Member] | Purdue University Global [Member] | Kaplan University Transaction [Member] | |||||||||||||||||||||||||||||
Business Acquisition [Line Items] | |||||||||||||||||||||||||||||
Amount of Priority Payment Per Year Beyond Costs | $ 10,000,000 | ||||||||||||||||||||||||||||
Other Businesses [Member] | |||||||||||||||||||||||||||||
Business Acquisition [Line Items] | |||||||||||||||||||||||||||||
Number of businesses acquired | business | 2 | 1 | 2 | ||||||||||||||||||||||||||
Other Businesses [Member] | Hoover Treated Wood Products [Member] | |||||||||||||||||||||||||||||
Business Acquisition [Line Items] | |||||||||||||||||||||||||||||
Percentage of interest acquired | 97.72% | ||||||||||||||||||||||||||||
Payments to Acquire Businesses, Net of Cash Acquired | $ 206,800,000 | ||||||||||||||||||||||||||||
Fair value of redeemable noncontrolling interest acquired | $ 3,700,000 | ||||||||||||||||||||||||||||
Other Businesses [Member] | SocialCode [Member] | Marketplace Strategy [Member] | |||||||||||||||||||||||||||||
Business Acquisition [Line Items] | |||||||||||||||||||||||||||||
Percentage of interest acquired | 100.00% | ||||||||||||||||||||||||||||
Other Businesses [Member] | Group Dekko [Member] | Electri-Cable Assemblies [Member] | |||||||||||||||||||||||||||||
Business Acquisition [Line Items] | |||||||||||||||||||||||||||||
Percentage of interest acquired | 100.00% | ||||||||||||||||||||||||||||
Other Businesses [Member] | Group Dekko [Member] | Furnlite Inc [Member] | |||||||||||||||||||||||||||||
Business Acquisition [Line Items] | |||||||||||||||||||||||||||||
Percentage of interest acquired | 100.00% | ||||||||||||||||||||||||||||
Television Broadcasting [Member] | |||||||||||||||||||||||||||||
Business Acquisition [Line Items] | |||||||||||||||||||||||||||||
Number of businesses acquired | business | 2 | ||||||||||||||||||||||||||||
Graham Healthcare Group [Member] | |||||||||||||||||||||||||||||
Business Acquisition [Line Items] | |||||||||||||||||||||||||||||
Number of businesses acquired | business | 1 | 1 | |||||||||||||||||||||||||||
Graham Healthcare Group [Member] | Hometown Home Health and Hospice [Member] | |||||||||||||||||||||||||||||
Business Acquisition [Line Items] | |||||||||||||||||||||||||||||
Percentage of interest acquired | 100.00% | ||||||||||||||||||||||||||||
Graham Healthcare Group [Member] | Graham Healthcare Group [Member] | |||||||||||||||||||||||||||||
Business Acquisition [Line Items] | |||||||||||||||||||||||||||||
Number of businesses acquired | business | 1 | ||||||||||||||||||||||||||||
Subsequent Event [Member] | Other Businesses [Member] | Auto dealerships [Member] | |||||||||||||||||||||||||||||
Business Acquisition [Line Items] | |||||||||||||||||||||||||||||
Derivative, Fixed Interest Rate | 4.70% | 4.70% | |||||||||||||||||||||||||||
Number of businesses acquired | business | 2 | ||||||||||||||||||||||||||||
Amount Borrowed to Finance Business Acquisition | $ 30,000,000 | $ 30,000,000 | |||||||||||||||||||||||||||
Percentage of interest acquired | 90.00% | 90.00% | |||||||||||||||||||||||||||
Securities Subject to Mandatory Redemption [Member] | |||||||||||||||||||||||||||||
Business Acquisition [Line Items] | |||||||||||||||||||||||||||||
Interest expense | $ 2,700,000 | ||||||||||||||||||||||||||||
Securities Subject to Mandatory Redemption [Member] | Graham Healthcare Group [Member] | |||||||||||||||||||||||||||||
Business Acquisition [Line Items] | |||||||||||||||||||||||||||||
Interest expense | $ 6,200,000 | ||||||||||||||||||||||||||||
10-Year Borrowing to Finance Acquisition [Member] | Subsequent Event [Member] | Other Businesses [Member] | Auto dealerships [Member] | |||||||||||||||||||||||||||||
Business Acquisition [Line Items] | |||||||||||||||||||||||||||||
Debt Instrument, Term | 10 years |
Acquisitions and Dispositions_4
Acquisitions and Dispositions of Businesses (Acquired assets and liabilities assumed) (Details 1) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2018 | Dec. 31, 2017 | Dec. 31, 2016 | |
Business Acquisition [Line Items] | |||
Document Fiscal Year Focus | 2,018 | ||
Goodwill | $ 1,297,712 | $ 1,299,710 | $ 1,122,954 |
Pension and other post retirement benefits liabilities | (59,100) | ||
Series of Individually Immaterial Business Acquisitions [Member] | |||
Business Acquisition [Line Items] | |||
Accounts receivable | 2,344 | 12,502 | 8,538 |
Inventory | 1,268 | 25,253 | 878 |
Property, plant and equipment | 1,518 | 29,921 | 3,940 |
Goodwill | 41,840 | 143,149 | 184,118 |
Indefinite-lived intangible assets | 0 | 33,800 | 53,110 |
Amortized intangible assets | 78,427 | 170,658 | 28,267 |
Other assets | 5,198 | 1,880 | 1,420 |
Pension and other post retirement benefits liabilities | 0 | (59,116) | 0 |
Other liabilities | (7,678) | (12,177) | (21,892) |
Deferred income tax liability | (4,900) | (37,289) | (11,009) |
Redeemable noncontrolling interest | 0 | (3,666) | 0 |
Aggregate purchase price, net of cash received | $ 118,017 | $ 304,915 | $ 247,370 |
Acquisitions and Dispositions_5
Acquisitions and Dispositions of Businesses (Pro Forma Financials) (Details 2) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2018 | Dec. 31, 2017 | Dec. 31, 2016 | |
Acquisitions And Dispositions [Abstract] | |||
Document Fiscal Year Focus | 2,018 | ||
Pro Forma Operating revenues | $ 2,735,879 | $ 2,725,046 | $ 2,570,416 |
Pro Forma Net income | $ 273,688 | $ 311,397 | $ 175,021 |
Acquisitions and Dispositions_6
Acquisitions and Dispositions of Businesses (Significant Component) (Details 3) - Kaplan University Transaction [Member] - Higher Education [Member] - Education [Member] - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2018 | Dec. 31, 2017 | Dec. 31, 2016 | |
Income Statement, Balance Sheet and Additional Disclosures by Disposal Groups, Including Discontinued Operations [Line Items] | |||
Disposal Group, Not Discontinued Operation, Revenue | $ 91,526 | $ 430,645 | $ 500,914 |
Disposal Group, Not Discontinued Operation, Operating Income | $ 213 | $ 17,869 | $ 39,498 |
Investments (Narrative) (Detail
Investments (Narrative) (Details) | 3 Months Ended | 12 Months Ended | |||||||||||||
Dec. 31, 2018USD ($)shares | Sep. 30, 2018USD ($) | Jun. 30, 2018USD ($) | Jun. 30, 2018GBP (£) | Mar. 31, 2018USD ($) | Dec. 31, 2017USD ($)shares | Sep. 30, 2017USD ($) | Jun. 30, 2017USD ($) | Mar. 31, 2017USD ($) | Dec. 31, 2016USD ($) | Dec. 31, 2018USD ($)shares | Dec. 31, 2017USD ($)shares | Dec. 31, 2016USD ($) | Dec. 31, 2018GBP (£)shares | Dec. 31, 2017GBP (£)shares | |
Schedule of Investments [Line Items] | |||||||||||||||
Money market investments | $ 75,500,000 | $ 217,600,000 | $ 75,500,000 | $ 217,600,000 | |||||||||||
Marketable equity securities | 496,390,000 | 496,390,000 | |||||||||||||
Marketable equity securities | 536,315,000 | 536,315,000 | |||||||||||||
Cash paid for new marketable equity securities | 42,700,000 | 0 | $ 48,300,000 | ||||||||||||
Marketable equity securities purchased | 47,900,000 | ||||||||||||||
Cumulative realized gain (loss) on marketable securities | 0 | 0 | (1,791,000) | ||||||||||||
Proceeds from sales of marketable equity securities | 66,700,000 | 0 | 29,700,000 | ||||||||||||
Loss on sales of marketable equity securities | 8,100,000 | ||||||||||||||
Gain on sales of marketable equity securities | 37,300,000 | 6,200,000 | |||||||||||||
Equity Method Investment, Other than Temporary Impairment | 2,800,000 | ||||||||||||||
Equity in earnings (losses) of affiliates, net | 1,426,000 | $ 9,537,000 | $ 931,000 | $ 2,579,000 | (4,697,000) | $ (532,000) | $ 1,331,000 | $ 649,000 | 14,473,000 | (3,249,000) | (7,937,000) | ||||
Equity Securities without Readily Determinable Fair Value, Amount | 30,600,000 | $ 19,900,000 | 30,600,000 | 19,900,000 | |||||||||||
Gains on cost method investments | $ 3,200,000 | 8,500,000 | 11,663,000 | $ 0 | $ 0 | ||||||||||
Impairment loss on cost method investments | $ 2,697,000 | ||||||||||||||
Markel Corporation [Member] | |||||||||||||||
Schedule of Investments [Line Items] | |||||||||||||||
Number of shares held in investment | shares | 28,000 | 28,000 | 28,000 | 28,000 | 28,000 | 28,000 | |||||||||
Marketable equity securities | $ 29,100,000 | $ 29,100,000 | |||||||||||||
Marketable equity securities | $ 31,900,000 | $ 31,900,000 | |||||||||||||
Intersection [Member] | |||||||||||||||
Schedule of Investments [Line Items] | |||||||||||||||
Ownership percentage of investment in affiliate | 11.00% | 11.00% | 11.00% | ||||||||||||
HomeHero [Member] | |||||||||||||||
Schedule of Investments [Line Items] | |||||||||||||||
Equity Method Investment, Other than Temporary Impairment | $ 8,400,000 | ||||||||||||||
Equity in earnings (losses) of affiliates, net | 2,100,000 | ||||||||||||||
One Investment [Member] | |||||||||||||||
Schedule of Investments [Line Items] | |||||||||||||||
Equity in earnings (losses) of affiliates, net | $ 5,800,000 | ||||||||||||||
Graham Healthcare Group [Member] | |||||||||||||||
Schedule of Investments [Line Items] | |||||||||||||||
Revenue from Related Parties | $ 12,100,000 | $ 18,300,000 | |||||||||||||
Graham Healthcare Group [Member] | Residential Home Health Illinois [Member] | |||||||||||||||
Schedule of Investments [Line Items] | |||||||||||||||
Ownership percentage of investment in affiliate | 40.00% | 40.00% | 40.00% | ||||||||||||
Graham Healthcare Group [Member] | Residential Hospice Illinois [Member] | |||||||||||||||
Schedule of Investments [Line Items] | |||||||||||||||
Ownership percentage of investment in affiliate | 42.50% | 42.50% | 42.50% | ||||||||||||
Graham Healthcare Group [Member] | Residential And Michigan Hospital Joint Venture [Member] | |||||||||||||||
Schedule of Investments [Line Items] | |||||||||||||||
Ownership percentage of investment in affiliate | 40.00% | 40.00% | 40.00% | ||||||||||||
Graham Healthcare Group [Member] | Celtic Healthcare Allegheny Health Network Joint Venture [Member] | |||||||||||||||
Schedule of Investments [Line Items] | |||||||||||||||
Ownership percentage of investment in affiliate | 40.00% | 40.00% | 40.00% | ||||||||||||
KIHL [Member] | York Joint Venture [Member] | |||||||||||||||
Schedule of Investments [Line Items] | |||||||||||||||
Ownership percentage of investment in affiliate | 45.00% | 45.00% | 45.00% | ||||||||||||
Loan commitment to affiliate | £ | £ 25,000,000 | ||||||||||||||
Advances to Affiliate | £ | £ 22,000,000 | £ 16,000,000 | |||||||||||||
Payments to Fund Long-term Loans to Related Parties | £ | £ 6,000,000 | ||||||||||||||
Loan Receivable, Payment Term | 25 years | ||||||||||||||
Loan Receivable Fixed Interest Rate | 7.00% |
Investments (Investments in Mar
Investments (Investments in Marketable Equity Securities) (Details 1) - USD ($) $ in Thousands | Dec. 31, 2018 | Dec. 31, 2017 |
Investments [Abstract] | ||
Total cost | $ 282,563 | |
Total cost | $ 269,343 | |
Gross unrealized gains | 216,111 | |
Gross unrealized gains | 266,972 | |
Gross unrealized losses | (2,284) | |
Gross unrealized losses | 0 | |
Total Fair Value | $ 496,390 | |
Total Fair Value | $ 536,315 |
Investments Investments (Loss o
Investments Investments (Loss on Marketable Equity Securities) (Details 2) - USD ($) $ in Thousands | 3 Months Ended | 12 Months Ended | |||||
Dec. 31, 2018 | Sep. 30, 2018 | Jun. 30, 2018 | Mar. 31, 2018 | Dec. 31, 2018 | Dec. 31, 2017 | Dec. 31, 2016 | |
Investments [Abstract] | |||||||
Loss on marketable equity securities, net | $ (44,149) | $ 44,962 | $ (2,554) | $ (14,102) | $ (15,843) | $ 0 | $ 0 |
Plus: Net losses in earnings from marketable equity securities sold | 4,271 | ||||||
Net unrealized losses in earnings from marketable equity securities still held at the end of the year | $ 11,572 |
Accounts Receivable, Accounts_3
Accounts Receivable, Accounts Payable and Accrued Liabilities (Narrative) (Details) - USD ($) $ in Millions | Dec. 31, 2018 | Dec. 31, 2017 |
Accounts Receivable Accounts Payable And Accrued Liabilities [Abstract] | ||
Cash overdrafts | $ 0.3 | $ 6 |
Accounts Receivable, Accounts_4
Accounts Receivable, Accounts Payable and Accrued Liabilities (Details 1) - USD ($) $ in Thousands | 12 Months Ended | |||
Dec. 31, 2018 | Dec. 31, 2017 | Dec. 31, 2016 | Jan. 01, 2018 | |
Accounts Receivable, Net [Abstract] | ||||
Receivables from contracts with customers, less doubtful accounts | $ 538,021 | $ 600,215 | ||
Other receivables | 44,259 | 20,104 | ||
Accounts receivable, net | 582,280 | 620,319 | $ 622,461 | |
Allowance for Doubtful Accounts Receivable | 14,775 | 22,975 | ||
Accounts Payable, Current [Abstract] | ||||
Accounts payable and accrued liabilities | 337,123 | 385,927 | ||
Accrued compensation and related benefits | 149,455 | 140,396 | ||
Total accounts payable and accrued liabilities | 486,578 | 526,323 | $ 526,411 | |
Allowance for doubtful accounts[Member] | ||||
SEC Schedule, 12-09, Movement in Valuation Allowances and Reserves [Roll Forward] | ||||
Balance at Beginning of Period | 22,975 | 26,723 | $ 27,854 | |
Additions - Charged to Costs and Expenses | 10,209 | 33,830 | 29,718 | |
Deductions | (18,409) | (37,578) | (30,849) | |
Balance at End of Period | $ 14,775 | $ 22,975 | $ 26,723 |
Inventories and Contracts in _3
Inventories and Contracts in Progress (Details) - USD ($) $ in Thousands | Dec. 31, 2018 | Jan. 01, 2018 | Dec. 31, 2017 |
Inventories and Contracts in Progress [Abstract] | |||
Raw materials | $ 37,248 | $ 30,429 | |
Work-in-process | 11,633 | 10,258 | |
Finished goods | 17,861 | 18,851 | |
Contracts in Progress | 2,735 | 1,074 | |
Inventories and contracts in progress | $ 69,477 | $ 60,858 | $ 60,612 |
Property, Plant and Equipment_2
Property, Plant and Equipment (Narrative) (Details) - USD ($) $ in Thousands | 3 Months Ended | 12 Months Ended | |||||||||
Dec. 31, 2018 | Sep. 30, 2018 | Jun. 30, 2018 | Mar. 31, 2018 | Dec. 31, 2017 | Sep. 30, 2017 | Jun. 30, 2017 | Mar. 31, 2017 | Dec. 31, 2018 | Dec. 31, 2017 | Dec. 31, 2016 | |
Property, Plant and Equipment [Line Items] | |||||||||||
Depreciation of property, plant and equipment | $ 14,813 | $ 13,648 | $ 13,619 | $ 14,642 | $ 15,984 | $ 16,002 | $ 15,871 | $ 14,652 | $ 56,722 | $ 62,509 | $ 64,620 |
Interest Costs Capitalized | $ 800 | $ 300 | $ 400 | ||||||||
Graham Healthcare Group [Member] | |||||||||||
Property, Plant and Equipment [Line Items] | |||||||||||
Property plant and equipment impairment charges | $ 200 | $ 400 | |||||||||
Other Businesses [Member] | Forney [Member] | |||||||||||
Property, Plant and Equipment [Line Items] | |||||||||||
Property plant and equipment impairment charges | $ 600 |
Property, Plant and Equipment_3
Property, Plant and Equipment (Details) - USD ($) $ in Thousands | Dec. 31, 2018 | Dec. 31, 2017 |
Property, Plant and Equipment [Abstract] | ||
Land | $ 15,965 | $ 16,190 |
Buildings | 108,683 | 107,932 |
Machinery, equipment and fixtures | 382,064 | 387,914 |
Leasehold improvements | 206,170 | 215,445 |
Construction in progress | 68,064 | 16,649 |
Property, plant and equipment, gross | 780,946 | 744,130 |
Less accumulated depreciation | (487,861) | (484,772) |
Property, plant and equipment, net | $ 293,085 | $ 259,358 |
Goodwill and Other Intangible_3
Goodwill and Other Intangible Assets Goodwill and Other Intangible Assets (Goodwill) (Narrative) (Details) $ in Thousands | 3 Months Ended | 12 Months Ended | ||||||||||
Dec. 31, 2018USD ($) | Sep. 30, 2018USD ($) | Jun. 30, 2018USD ($) | Mar. 31, 2018USD ($) | Dec. 31, 2017USD ($) | Sep. 30, 2017USD ($) | Jun. 30, 2017USD ($) | Mar. 31, 2017USD ($) | Dec. 31, 2016USD ($)business | Dec. 31, 2018USD ($) | Dec. 31, 2017USD ($) | Dec. 31, 2016USD ($) | |
Goodwill [Line Items] | ||||||||||||
Asset Impairment Charges | $ 0 | $ 8,109 | $ 0 | $ 0 | $ 78 | $ 312 | $ 9,224 | $ 0 | $ 8,109 | $ 9,614 | $ 1,603 | |
Goodwill, Impairment Loss | 7,616 | |||||||||||
Education [Member] | ||||||||||||
Goodwill [Line Items] | ||||||||||||
Goodwill, Impairment Loss | 0 | |||||||||||
Other Businesses [Member] | ||||||||||||
Goodwill [Line Items] | ||||||||||||
Number of businesses recorded impairment of goodwill | business | 1 | |||||||||||
Goodwill, Impairment Loss | $ 1,600 | $ 7,616 | ||||||||||
Forney [Member] | Other Businesses [Member] | ||||||||||||
Goodwill [Line Items] | ||||||||||||
Asset Impairment Charges | $ 8,600 |
Goodwill and Other Intangible_4
Goodwill and Other Intangible Assets (Finite-lived Intangible Assets) (Narrative) (Details) - USD ($) $ in Thousands | 3 Months Ended | 12 Months Ended | |||||||||
Dec. 31, 2018 | Sep. 30, 2018 | Jun. 30, 2018 | Mar. 31, 2018 | Dec. 31, 2017 | Sep. 30, 2017 | Jun. 30, 2017 | Mar. 31, 2017 | Dec. 31, 2018 | Dec. 31, 2017 | Dec. 31, 2016 | |
Amortized Intangible Assets [Line Items] | |||||||||||
Asset Impairment Charges | $ 0 | $ 8,109 | $ 0 | $ 0 | $ 78 | $ 312 | $ 9,224 | $ 0 | $ 8,109 | $ 9,614 | $ 1,603 |
Amortization of Intangible Assets | |||||||||||
Amortization of intangible assets | 13,362 | 12,269 | $ 11,399 | $ 10,384 | $ 12,897 | $ 10,923 | $ 10,531 | $ 6,836 | 47,414 | $ 41,187 | $ 26,671 |
Estimated amortization of intangible assets, 2019 | 52,000 | 52,000 | |||||||||
Estimated amortization of intangible assets, 2020 | 49,000 | 49,000 | |||||||||
Estimated amortization of intangible assets, 2021 | 43,000 | 43,000 | |||||||||
Estimated amortization of intangible assets, 2022 | 37,000 | 37,000 | |||||||||
Estimated amortization of intangible assets, 2023 | 29,000 | 29,000 | |||||||||
Estimated amortization of intangible assets, after 2023 | $ 53,000 | $ 53,000 | |||||||||
Graham Healthcare Group [Member] | |||||||||||
Amortized Intangible Assets [Line Items] | |||||||||||
Impairment of intangible assets | $ 7,900 |
Goodwill and Other Intangible_5
Goodwill and Other Intangible Assets (Changes in Carrying Amount of Goodwill) (Details 1) - USD ($) $ in Thousands | 3 Months Ended | 12 Months Ended | |
Dec. 31, 2016 | Dec. 31, 2018 | Dec. 31, 2017 | |
Goodwill [Roll Forward] | |||
Goodwill, beginning balance | $ 1,665,861 | $ 1,481,489 | |
Accumulated impairment losses, beginning balance | (366,151) | (358,535) | |
Goodwill, net, beginning balance | 1,299,710 | 1,122,954 | |
Acquisitions | 41,840 | 143,149 | |
Impairment | (7,616) | ||
Dispositions | (11,191) | (412) | |
Foreign currency exchange rate changes | (32,647) | 41,635 | |
Goodwill, ending balance | $ 1,481,489 | 1,644,164 | 1,665,861 |
Accumulated impairment losses, ending balance | (358,535) | (346,452) | (366,151) |
Goodwill, net, ending balance | 1,122,954 | 1,297,712 | 1,299,710 |
Education [Member] | |||
Goodwill [Roll Forward] | |||
Goodwill, beginning balance | 1,171,812 | 1,111,003 | |
Accumulated impairment losses, beginning balance | (350,850) | (350,850) | |
Goodwill, net, beginning balance | 820,962 | 760,153 | |
Acquisitions | 20,424 | 19,174 | |
Impairment | 0 | ||
Dispositions | (11,191) | 0 | |
Foreign currency exchange rate changes | (32,647) | 41,635 | |
Goodwill, ending balance | 1,111,003 | 1,128,699 | 1,171,812 |
Accumulated impairment losses, ending balance | (350,850) | (331,151) | (350,850) |
Goodwill, net, ending balance | 760,153 | 797,548 | 820,962 |
Education [Member] | Kaplan International [Member] | |||
Goodwill [Roll Forward] | |||
Goodwill, beginning balance | 615,861 | 555,185 | |
Accumulated impairment losses, beginning balance | 0 | 0 | |
Goodwill, net, beginning balance | 615,861 | 555,185 | |
Acquisitions | 62 | 19,174 | |
Dispositions | 0 | ||
Foreign currency exchange rate changes | (32,499) | 41,502 | |
Goodwill, ending balance | 555,185 | 583,424 | 615,861 |
Accumulated impairment losses, ending balance | 0 | 0 | 0 |
Goodwill, net, ending balance | 555,185 | 583,424 | 615,861 |
Education [Member] | Higher Education [Member] | |||
Goodwill [Roll Forward] | |||
Goodwill, beginning balance | 205,494 | 205,494 | |
Accumulated impairment losses, beginning balance | (131,023) | (131,023) | |
Goodwill, net, beginning balance | 74,471 | 74,471 | |
Acquisitions | 0 | 0 | |
Dispositions | (11,191) | ||
Foreign currency exchange rate changes | (40) | 0 | |
Goodwill, ending balance | 205,494 | 174,564 | 205,494 |
Accumulated impairment losses, ending balance | (131,023) | (111,324) | (131,023) |
Goodwill, net, ending balance | 74,471 | 63,240 | 74,471 |
Education [Member] | Test Preparation [Member] | |||
Goodwill [Roll Forward] | |||
Goodwill, beginning balance | 166,098 | 166,098 | |
Accumulated impairment losses, beginning balance | (102,259) | (102,259) | |
Goodwill, net, beginning balance | 63,839 | 63,839 | |
Acquisitions | 822 | 0 | |
Dispositions | 0 | ||
Foreign currency exchange rate changes | 0 | 0 | |
Goodwill, ending balance | 166,098 | 166,920 | 166,098 |
Accumulated impairment losses, ending balance | (102,259) | (102,259) | (102,259) |
Goodwill, net, ending balance | 63,839 | 64,661 | 63,839 |
Education [Member] | Professional (U.S.) [Member] | |||
Goodwill [Roll Forward] | |||
Goodwill, beginning balance | 184,359 | 184,226 | |
Accumulated impairment losses, beginning balance | (117,568) | (117,568) | |
Goodwill, net, beginning balance | 66,791 | 66,658 | |
Acquisitions | 19,540 | 0 | |
Dispositions | 0 | ||
Foreign currency exchange rate changes | (108) | 133 | |
Goodwill, ending balance | 184,226 | 203,791 | 184,359 |
Accumulated impairment losses, ending balance | (117,568) | (117,568) | (117,568) |
Goodwill, net, ending balance | 66,658 | 86,223 | 66,791 |
Television Broadcasting [Member] | |||
Goodwill [Roll Forward] | |||
Goodwill, beginning balance | 190,815 | 168,345 | |
Accumulated impairment losses, beginning balance | 0 | 0 | |
Goodwill, net, beginning balance | 190,815 | 168,345 | |
Acquisitions | 0 | 22,470 | |
Impairment | 0 | ||
Dispositions | 0 | 0 | |
Foreign currency exchange rate changes | 0 | 0 | |
Goodwill, ending balance | 168,345 | 190,815 | 190,815 |
Accumulated impairment losses, ending balance | 0 | 0 | 0 |
Goodwill, net, ending balance | 168,345 | 190,815 | 190,815 |
Graham Healthcare Group [Member] | |||
Goodwill [Roll Forward] | |||
Goodwill, beginning balance | 69,409 | 59,640 | |
Accumulated impairment losses, beginning balance | 0 | 0 | |
Goodwill, net, beginning balance | 69,409 | 59,640 | |
Acquisitions | 217 | 10,181 | |
Impairment | 0 | ||
Dispositions | 0 | (412) | |
Foreign currency exchange rate changes | 0 | 0 | |
Goodwill, ending balance | 59,640 | 69,626 | 69,409 |
Accumulated impairment losses, ending balance | 0 | 0 | 0 |
Goodwill, net, ending balance | 59,640 | 69,626 | 69,409 |
Other Businesses [Member] | |||
Goodwill [Roll Forward] | |||
Goodwill, beginning balance | 233,825 | 142,501 | |
Accumulated impairment losses, beginning balance | (15,301) | (7,685) | |
Goodwill, net, beginning balance | 218,524 | 134,816 | |
Acquisitions | 21,199 | 91,324 | |
Impairment | (1,600) | (7,616) | |
Dispositions | 0 | 0 | |
Foreign currency exchange rate changes | 0 | 0 | |
Goodwill, ending balance | 142,501 | 255,024 | 233,825 |
Accumulated impairment losses, ending balance | (7,685) | (15,301) | (15,301) |
Goodwill, net, ending balance | $ 134,816 | $ 239,723 | $ 218,524 |
Goodwill and Other Intangible_6
Goodwill and Other Intangible Assets (Other Intangible Assets) (Details 2) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2018 | Dec. 31, 2017 | ||
Amortized Intangible Assets [Line Items] | |||
Gross Carrying Amount | $ 440,105 | $ 362,073 | |
Accumulated Amortization | 176,844 | 124,097 | |
Net Carrying Amount | 263,261 | 237,976 | |
Indefinite-lived Intangible Assets [Line Items] | |||
Net Carrying Amount | 99,052 | 102,195 | |
Student and Customer Relationships [Member] | |||
Amortized Intangible Assets [Line Items] | |||
Gross Carrying Amount | [1] | 282,761 | 260,464 |
Accumulated Amortization | [1] | 114,429 | 83,690 |
Net Carrying Amount | [1] | 168,332 | 176,774 |
Trade Names and Trademarks [Member] | |||
Amortized Intangible Assets [Line Items] | |||
Gross Carrying Amount | 87,285 | 50,286 | |
Accumulated Amortization | 39,825 | 25,596 | |
Net Carrying Amount | $ 47,460 | $ 24,690 | |
Network affiliation agreements [Member] | |||
Amortized Intangible Assets [Line Items] | |||
Useful Life (in years) | 10 years | 10 years | |
Gross Carrying Amount | $ 17,400 | $ 17,400 | |
Accumulated Amortization | 3,408 | 1,668 | |
Net Carrying Amount | 13,992 | 15,732 | |
Databases and Technology [Member] | |||
Amortized Intangible Assets [Line Items] | |||
Gross Carrying Amount | 27,041 | 19,563 | |
Accumulated Amortization | 8,471 | 5,008 | |
Net Carrying Amount | 18,570 | 14,555 | |
Non-compete Agreements [Member] | |||
Amortized Intangible Assets [Line Items] | |||
Gross Carrying Amount | 1,088 | 930 | |
Accumulated Amortization | 838 | 467 | |
Net Carrying Amount | 250 | 463 | |
Other [Member] | |||
Amortized Intangible Assets [Line Items] | |||
Gross Carrying Amount | 24,530 | 13,430 | |
Accumulated Amortization | 9,873 | 7,668 | |
Net Carrying Amount | $ 14,657 | $ 5,762 | |
Minimum [Member] | Student and Customer Relationships [Member] | |||
Amortized Intangible Assets [Line Items] | |||
Useful Life (in years) | [1] | 2 years | 1 year |
Minimum [Member] | Trade Names and Trademarks [Member] | |||
Amortized Intangible Assets [Line Items] | |||
Useful Life (in years) | 2 years | 2 years | |
Minimum [Member] | Databases and Technology [Member] | |||
Amortized Intangible Assets [Line Items] | |||
Useful Life (in years) | 3 years | 3 years | |
Minimum [Member] | Non-compete Agreements [Member] | |||
Amortized Intangible Assets [Line Items] | |||
Useful Life (in years) | 2 years | 2 years | |
Minimum [Member] | Other [Member] | |||
Amortized Intangible Assets [Line Items] | |||
Useful Life (in years) | 1 year | 1 year | |
Maximum [Member] | |||
Amortized Intangible Assets [Line Items] | |||
Useful Life (in years) | 10 years | ||
Maximum [Member] | Student and Customer Relationships [Member] | |||
Amortized Intangible Assets [Line Items] | |||
Useful Life (in years) | [1] | 10 years | 10 years |
Maximum [Member] | Trade Names and Trademarks [Member] | |||
Amortized Intangible Assets [Line Items] | |||
Useful Life (in years) | 10 years | 10 years | |
Maximum [Member] | Databases and Technology [Member] | |||
Amortized Intangible Assets [Line Items] | |||
Useful Life (in years) | 6 years | 6 years | |
Maximum [Member] | Non-compete Agreements [Member] | |||
Amortized Intangible Assets [Line Items] | |||
Useful Life (in years) | 5 years | 5 years | |
Maximum [Member] | Other [Member] | |||
Amortized Intangible Assets [Line Items] | |||
Useful Life (in years) | 8 years | 8 years | |
Trade Names and Trademarks [Member] | |||
Indefinite-lived Intangible Assets [Line Items] | |||
Net Carrying Amount | $ 80,102 | $ 82,745 | |
FCC licenses [Member] | |||
Indefinite-lived Intangible Assets [Line Items] | |||
Net Carrying Amount | 18,800 | 18,800 | |
Licensure and Accreditation [Member] | |||
Indefinite-lived Intangible Assets [Line Items] | |||
Net Carrying Amount | $ 150 | $ 650 | |
[1] | As of December 31, 2017, the student and customer relationships’ minimum useful life was 1 year. |
Income Taxes (Narrative) (Detai
Income Taxes (Narrative) (Details) - USD ($) | 3 Months Ended | 12 Months Ended | |||
Dec. 31, 2017 | Sep. 30, 2016 | Dec. 31, 2018 | Dec. 31, 2017 | Dec. 31, 2016 | |
Income Taxes [Line Items] | |||||
Write-off of deferred taxes related to intercompany loans | $ 0 | $ 0 | $ 10,965,000 | ||
Deferred income tax expense (benefit) | (7,123,000) | (146,452,000) | 10,070,000 | ||
Deferred state income tax asset | $ 35,434,000 | 34,107,000 | 35,434,000 | ||
Deferred tax assets with respect to U.S. Federal income tax loss carryforwards | 2,857,000 | 2,100,000 | 2,857,000 | ||
Deferred tax assets with respect to non U.S. income tax loss carryforwards | 18,797,000 | 15,868,000 | 18,797,000 | ||
Valuation Allowance, Amount | 48,742,000 | 33,120,000 | 48,742,000 | ||
Deferred income tax liabilities related to undistributed earnings of investments in non-U.S. subsidiaries | 1,606,000 | 1,726,000 | 1,606,000 | ||
Interest accrued related to unrecognized tax benefits | 600,000 | ||||
Penalties accrued related to unrecognized tax benefits | 0 | ||||
Reduction In Federal Tax Rate [Member] | |||||
Income Taxes [Line Items] | |||||
Income Tax Expense (Benefit), Adjustment of Deferred Tax (Asset) Liability | 153,300,000 | ||||
Change in Tax on non-US Subsidiary Earnings [Member] | |||||
Income Taxes [Line Items] | |||||
Income Tax Expense (Benefit), Adjustment of Deferred Tax (Asset) Liability | 28,300,000 | ||||
Adjustment [Member] | |||||
Income Taxes [Line Items] | |||||
Deferred income tax expense (benefit) | (5,600,000) | ||||
State [Member] | |||||
Income Taxes [Line Items] | |||||
Income tax loss carryforwards to expire | 698,900,000 | ||||
Deferred state income tax asset | 34,100,000 | ||||
Non-U.S.deferred tax asset related to capital loss carryforwards | 0 | 1,093,000 | 0 | ||
Valuation Allowance, Amount | 22,200,000 | ||||
Valuation allowance related to operating loss carryforwards | 17,900,000 | ||||
Valuation allowance released | (15,767,000) | (946,000) | 3,196,000 | ||
Unrecognized tax benefit that would impact the effective tax rate | 2,500,000 | ||||
State [Member] | Education [Member] | |||||
Income Taxes [Line Items] | |||||
Valuation Allowance, Deferred Tax Asset, Increase (Decrease), Amount | (20,000,000) | ||||
U.S. Federal [Member] | |||||
Income Taxes [Line Items] | |||||
Income tax loss carryforwards obtained as a result of prior stock acqusitions | 9,900,000 | ||||
Deferred tax assets with respect to U.S. Federal income tax loss carryforwards | 2,100,000 | ||||
Foreign tax credit carryforwards | 1,000,000 | ||||
Deferred tax assets with respect to U.S. Federal foreign tax credit carryforwards | 2,522,000 | 987,000 | 2,522,000 | ||
Federal tax impact of unrecognized tax benefits that would impact the effective tax rate | 500,000 | ||||
non-U.S. [Member] | |||||
Income Taxes [Line Items] | |||||
Tax loss carryforwards as a result of operating losses and prior stock acquisitions | 58,100,000 | ||||
Deferred tax assets with respect to non U.S. income tax loss carryforwards | 15,900,000 | ||||
Valuation allowance against the deferred tax assets recorded for the tax losses carryforward | 6,100,000 | ||||
Tax loss carryforwards from operating losses and prior stock acquisitions that can be carried forward indefinitely | 46,800,000 | ||||
Non-U.S.deferred tax asset related to capital loss carryforwards | 2,336,000 | 3,609,000 | 2,336,000 | ||
Valuation Allowance, Amount | 9,900,000 | ||||
Valuation allowance released | 1,322,000 | (1,935,000) | $ (12,688,000) | ||
non-U.S. [Member] | Through 2023 [Member] | |||||
Income Taxes [Line Items] | |||||
Tax loss carryforwards subject to expiration | 8,400,000 | ||||
non-U.S. [Member] | After 2023 [Member] | |||||
Income Taxes [Line Items] | |||||
Tax loss carryforwards subject to expiration | 2,900,000 | ||||
U.S. Federal and State [Member] | |||||
Income Taxes [Line Items] | |||||
Excess of book value over tax basis of investment | 113,200,000 | 226,100,000 | 113,200,000 | ||
Australian Taxation Office [Member] | |||||
Income Taxes [Line Items] | |||||
Valuation Allowance, Deferred Tax Asset, Increase (Decrease), Amount | $ 19,300,000 | ||||
Capital loss carryforwards to 2013 tax year [Member] | Internal Revenue Service (IRS) [Member] | |||||
Income Taxes [Line Items] | |||||
Refund from Settlement with Taxing Authority | $ 9,700,000 | $ 9,700,000 | |||
Capital loss carryforward [Member] | non-U.S. [Member] | |||||
Income Taxes [Line Items] | |||||
Carryforward amount | 12,000,000 | ||||
Valuation Allowance, Amount | $ 3,600,000 |
Income Taxes (Income from Opera
Income Taxes (Income from Operations) (Details 1) - USD ($) $ in Thousands | 3 Months Ended | 12 Months Ended | |||||||||
Dec. 31, 2018 | Sep. 30, 2018 | Jun. 30, 2018 | Mar. 31, 2018 | Dec. 31, 2017 | Sep. 30, 2017 | Jun. 30, 2017 | Mar. 31, 2017 | Dec. 31, 2018 | Dec. 31, 2017 | Dec. 31, 2016 | |
Income (Loss) from Continuing Operations before Income Taxes [Abstract] | |||||||||||
U.S. | $ 257,312 | $ 134,276 | $ 227,457 | ||||||||
Non-U.S. | 66,196 | 48,513 | 23,201 | ||||||||
Income Before Income Taxes | $ 69,138 | $ 135,070 | $ 62,735 | $ 56,565 | $ 54,860 | $ 38,244 | $ 65,899 | $ 23,786 | $ 323,508 | $ 182,789 | $ 250,658 |
Income Taxes (Provision for Inc
Income Taxes (Provision for Income Taxes Components) (Details 2) - USD ($) $ in Thousands | 3 Months Ended | 12 Months Ended | |||||||||
Dec. 31, 2018 | Sep. 30, 2018 | Jun. 30, 2018 | Mar. 31, 2018 | Dec. 31, 2017 | Sep. 30, 2017 | Jun. 30, 2017 | Mar. 31, 2017 | Dec. 31, 2018 | Dec. 31, 2017 | Dec. 31, 2016 | |
Income Tax Expense (Benefit), Continuing Operations [Abstract] | |||||||||||
U.S. Federal, Current | $ 46,059 | $ 10,743 | $ 56,342 | ||||||||
State and Local, Current | 2,240 | 5,930 | 6,325 | ||||||||
Non-U.S., Current | 10,924 | 10,079 | 8,463 | ||||||||
Total income tax, Current | 59,223 | 26,752 | 71,130 | ||||||||
U.S. Federal, Deferred | 16,718 | (153,217) | 33,959 | ||||||||
State and Local, Deferred | (23,809) | 3,306 | (5,164) | ||||||||
Non-U.S., Deferred | (32) | 3,459 | (18,725) | ||||||||
Total income tax, Deferred | (7,123) | (146,452) | 10,070 | ||||||||
U.S. Federal, Total | 62,777 | (142,474) | 90,301 | ||||||||
State and Local, Total | (21,569) | 9,236 | 1,161 | ||||||||
Non-U.S., Total | 10,892 | 13,538 | (10,262) | ||||||||
Total provision for income tax | $ 12,400 | $ 10,000 | $ 16,100 | $ 13,600 | $ (159,700) | $ 13,400 | $ 23,900 | $ 2,700 | $ 52,100 | $ (119,700) | $ 81,200 |
Income Taxes (Income Tax Reconc
Income Taxes (Income Tax Reconciliation) (Details 3) - USD ($) $ in Thousands | 3 Months Ended | 12 Months Ended | |||||||||
Dec. 31, 2018 | Sep. 30, 2018 | Jun. 30, 2018 | Mar. 31, 2018 | Dec. 31, 2017 | Sep. 30, 2017 | Jun. 30, 2017 | Mar. 31, 2017 | Dec. 31, 2018 | Dec. 31, 2017 | Dec. 31, 2016 | |
Income Taxes [Line Items] | |||||||||||
U.S. Federal taxes at statutory rate | $ 67,937 | $ 63,976 | $ 87,731 | ||||||||
State and local taxes, net of U.S. Federal tax | (1,279) | 6,949 | (2,965) | ||||||||
Stock based compensation | $ 1,800 | $ 5,900 | (1,731) | (6,023) | 0 | ||||||
Goodwill impairments and dispositions | 0 | 0 | (5,631) | ||||||||
U.S. Federal Manufacturing Deducation tax benefits | 0 | (1,329) | (6,012) | ||||||||
Write-off of deferred taxes related to intercompany loans | 0 | 0 | 10,965 | ||||||||
Deferred tax impact of U.S. Federal tax rate reduction to 21%, net of state tax impact | 0 | (153,336) | 0 | ||||||||
Deferred tax benefit on unremitted non-U.S. subsidiary earnings | 0 | (28,324) | 0 | ||||||||
Other, net | 1,618 | 1,268 | 6,604 | ||||||||
Total provision for income tax | $ 12,400 | $ 10,000 | $ 16,100 | $ 13,600 | $ (159,700) | $ 13,400 | $ 23,900 | $ 2,700 | 52,100 | (119,700) | 81,200 |
State [Member] | |||||||||||
Income Taxes [Line Items] | |||||||||||
Valuation allowance against tax benefits | (15,767) | (946) | 3,196 | ||||||||
non-U.S. [Member] | |||||||||||
Income Taxes [Line Items] | |||||||||||
Valuation allowance against tax benefits | $ 1,322 | $ (1,935) | $ (12,688) |
Income Taxes (Deferred Income T
Income Taxes (Deferred Income Taxes Components) (Details 4) - USD ($) $ in Thousands | Dec. 31, 2018 | Dec. 31, 2017 |
Deferred Income Tax Liabilities [Line Items] | ||
Employee benefit obligations | $ 68,392 | $ 84,148 |
Accounts receivable | 4,449 | 5,481 |
State income tax loss carryforwards | 34,107 | 35,434 |
U.S. Federal income tax loss carryforwards | 2,100 | 2,857 |
Non-U.S. income tax loss carryforwards | 15,868 | 18,797 |
Other | 14,657 | 26,546 |
Deferred tax assets | 145,262 | 178,121 |
Valuation allowance | (33,120) | (48,742) |
Deferred tax assets, net | 112,142 | 129,379 |
Unrealized gain on available-for-sale securities | 51,242 | 70,827 |
Goodwill and other intangible assets | 88,798 | 109,428 |
Property, plant and equipment | 9,997 | 11,248 |
Non-U.S. withholding tax | 1,726 | 1,606 |
Deferred tax liabilities | 421,175 | 476,713 |
Deferred Income Tax Liabilities, Net | 309,033 | 347,334 |
non-U.S. [Member] | ||
Deferred Income Tax Liabilities [Line Items] | ||
Capital loss carryforwards | 3,609 | 2,336 |
Non-U.S. income tax loss carryforwards | 15,900 | |
Valuation allowance | (9,900) | |
U.S. Federal [Member] | ||
Deferred Income Tax Liabilities [Line Items] | ||
U.S. Federal income tax loss carryforwards | 2,100 | |
U.S Federal foreign income tax credit carryforwards | 987 | 2,522 |
State [Member] | ||
Deferred Income Tax Liabilities [Line Items] | ||
State income tax loss carryforwards | 34,100 | |
Capital loss carryforwards | 1,093 | 0 |
Valuation allowance | (22,200) | |
Pension Plan [Member] | ||
Deferred Income Tax Liabilities [Line Items] | ||
Prepaid pension cost | $ 269,412 | $ 283,604 |
Income Taxes (Operating Loss Ca
Income Taxes (Operating Loss Carryforwards) (Details 5) $ in Millions | Dec. 31, 2018USD ($) |
State [Member] | |
Operating Loss Carryforwards [Line Items] | |
Income tax loss carryforwards to expire | $ 698.9 |
U.S. Federal [Member] | |
Operating Loss Carryforwards [Line Items] | |
Income tax loss carryforwards to be fully utilized | 9.9 |
2019 [Member] | State [Member] | |
Operating Loss Carryforwards [Line Items] | |
Income tax loss carryforwards to expire | 1.8 |
2019 [Member] | U.S. Federal [Member] | |
Operating Loss Carryforwards [Line Items] | |
Income tax loss carryforwards to be fully utilized | 3.3 |
2020 [Member] | State [Member] | |
Operating Loss Carryforwards [Line Items] | |
Income tax loss carryforwards to expire | 15.5 |
2020 [Member] | U.S. Federal [Member] | |
Operating Loss Carryforwards [Line Items] | |
Income tax loss carryforwards to be fully utilized | 3.3 |
2021 [Member] | State [Member] | |
Operating Loss Carryforwards [Line Items] | |
Income tax loss carryforwards to expire | 17.1 |
2021 [Member] | U.S. Federal [Member] | |
Operating Loss Carryforwards [Line Items] | |
Income tax loss carryforwards to be fully utilized | 1.1 |
2022 [Member] | State [Member] | |
Operating Loss Carryforwards [Line Items] | |
Income tax loss carryforwards to expire | 0.3 |
2022 [Member] | U.S. Federal [Member] | |
Operating Loss Carryforwards [Line Items] | |
Income tax loss carryforwards to be fully utilized | 0.9 |
2023 [Member] | State [Member] | |
Operating Loss Carryforwards [Line Items] | |
Income tax loss carryforwards to expire | 5 |
2023 [Member] | U.S. Federal [Member] | |
Operating Loss Carryforwards [Line Items] | |
Income tax loss carryforwards to be fully utilized | 0.4 |
2024 and after [Member] | State [Member] | |
Operating Loss Carryforwards [Line Items] | |
Income tax loss carryforwards to expire | 659.2 |
2024 and after [Member] | U.S. Federal [Member] | |
Operating Loss Carryforwards [Line Items] | |
Income tax loss carryforwards to be fully utilized | $ 0.9 |
Income Taxes (Deferred Tax Vall
Income Taxes (Deferred Tax Valluation Allowances) (Details 6) - Deferred Tax Valuation Allowance [Member] - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2018 | Dec. 31, 2017 | Dec. 31, 2016 | |
SEC Schedule, 12-09, Movement in Valuation Allowances and Reserves [Roll Forward] | |||
Balance at Beginning of Period | $ 48,742 | $ 41,319 | $ 69,545 |
Tax Expense and Revaluation | 4,413 | 7,423 | 4,709 |
Deductions | (20,035) | 0 | (32,935) |
Balance at End of Period | $ 33,120 | $ 48,742 | $ 41,319 |
Income Taxes Income Taxes (Unre
Income Taxes Income Taxes (Unrecognized Tax Benefits Rollforward) (Details 7) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2018 | Dec. 31, 2017 | Dec. 31, 2016 | |
Reconciliation of Unrecognized Tax Benefits, Excluding Amounts Pertaining to Examined Tax Returns [Roll Forward] | |||
Beginning unrecognized tax benefits | $ 17,331 | $ 17,331 | $ 17,331 |
Increases related to current year tax positions | 0 | 0 | 0 |
Increases related to prior year tax positions | 500 | 0 | 0 |
Decrease related to prior year tax positions | (12,187) | 0 | 0 |
Decreases related to settlement with tax authorities | 0 | 0 | 0 |
Decreases due to lapse of applicable statute of limitations | (3,161) | 0 | 0 |
Ending unrecognized tax benefits | $ 2,483 | $ 17,331 | $ 17,331 |
Debt (Narrative) (Details)
Debt (Narrative) (Details) | Jun. 29, 2018USD ($) | May 30, 2018USD ($) | Jul. 14, 2016GBP (£) | Jun. 30, 2018USD ($) | Dec. 31, 2018USD ($) | Sep. 30, 2018USD ($) | Jun. 30, 2018USD ($) | Mar. 31, 2018USD ($) | Dec. 31, 2017USD ($) | Sep. 30, 2017USD ($) | Jun. 30, 2017USD ($) | Mar. 31, 2017USD ($) | Dec. 31, 2018USD ($) | Dec. 31, 2017USD ($) | Dec. 31, 2016USD ($) | Jul. 25, 2016GBP (£) | |
Debt Instrument [Line Items] | |||||||||||||||||
Debt extinguishment costs | $ 0 | $ 0 | $ (11,378,000) | $ 0 | $ (11,378,000) | $ 0 | $ 0 | ||||||||||
Average borrowings outstanding | $ 517,200,000 | $ 493,200,000 | |||||||||||||||
Weighted average interest rate of borrowings | 5.60% | 6.30% | |||||||||||||||
Interest expense | $ (32,549,000) | $ (27,305,000) | (32,297,000) | ||||||||||||||
Interest income | 1,469,000 | 611,000 | 1,901,000 | 1,372,000 | $ 3,184,000 | $ 861,000 | $ 1,173,000 | $ 1,363,000 | 5,353,000 | 6,581,000 | 3,093,000 | ||||||
Interest expense | $ 6,531,000 | $ 6,135,000 | $ 17,165,000 | $ 8,071,000 | $ 8,103,000 | $ 8,619,000 | $ 9,035,000 | $ 8,129,000 | $ 37,902,000 | $ 33,886,000 | 35,390,000 | ||||||
7.25% Unsecured Notes due February 1, 2019 [Member] | |||||||||||||||||
Debt Instrument [Line Items] | |||||||||||||||||
Interest rate | 7.25% | 7.25% | 7.25% | 7.25% | 7.25% | ||||||||||||
Redemption of notes outstanding | $ 400,000,000 | ||||||||||||||||
Debt extinguishment costs | $ 11,400,000 | ||||||||||||||||
Fair value of debt instrument | $ 414,700,000 | $ 414,700,000 | |||||||||||||||
Carrying value of debt instrument | $ 0 | $ 399,507,000 | $ 0 | $ 399,507,000 | |||||||||||||
Other Indebtedness [Member] | |||||||||||||||||
Debt Instrument [Line Items] | |||||||||||||||||
Interest rate | 2.00% | 2.00% | 2.00% | 2.00% | |||||||||||||
Maturity year | Dec. 31, 2026 | Dec. 31, 2026 | |||||||||||||||
5.75% Unsecured Notes due June 1, 2026 [Member] | |||||||||||||||||
Debt Instrument [Line Items] | |||||||||||||||||
Unamortized debt issuance costs | $ 5,300,000 | $ 5,300,000 | |||||||||||||||
Interest rate | 5.75% | ||||||||||||||||
Debt instrument, face amount | $ 400,000,000 | ||||||||||||||||
Fair value of debt instrument | 406,700,000 | 406,700,000 | |||||||||||||||
Carrying value of debt instrument | [1] | 394,675,000 | $ 0 | 394,675,000 | $ 0 | ||||||||||||
Kaplan Four Year Credit Agreement Dated July 14, 2016 [Member] | |||||||||||||||||
Debt Instrument [Line Items] | |||||||||||||||||
Unamortized debt issuance costs | 200,000 | 400,000 | 200,000 | 400,000 | |||||||||||||
Line of Credit | [2] | 82,366,000 | 93,671,000 | 82,366,000 | 93,671,000 | ||||||||||||
Five-Year Revolving Credit Agreement Dated June 29, 2015 [Member] | |||||||||||||||||
Debt Instrument [Line Items] | |||||||||||||||||
Line of Credit | $ 0 | 0 | |||||||||||||||
Five-Year Credit Agreement dated May 30, 2018 [Member] | |||||||||||||||||
Debt Instrument [Line Items] | |||||||||||||||||
Credit facility current borrowing capacity | $ 300,000,000 | ||||||||||||||||
Line of Credit | $ 0 | $ 0 | |||||||||||||||
Debt covenant net leverage ratio, maximum | 3.5 | ||||||||||||||||
Debt covenant interest coverage ratio, minimum | 3.5 | ||||||||||||||||
Debt Instrument, Term | 5 years | ||||||||||||||||
Multicurrency $100 million portion of revolver [Member] | |||||||||||||||||
Debt Instrument [Line Items] | |||||||||||||||||
Credit facility current borrowing capacity | $ 100,000,000 | ||||||||||||||||
USD $200 million portion of revolver [Member] | |||||||||||||||||
Debt Instrument [Line Items] | |||||||||||||||||
Credit facility current borrowing capacity | $ 200,000,000 | ||||||||||||||||
Minimum [Member] | Five-Year Credit Agreement dated May 30, 2018 [Member] | |||||||||||||||||
Debt Instrument [Line Items] | |||||||||||||||||
Line of Credit Facility, Unused Capacity, Commitment Fee Percentage | 0.15% | ||||||||||||||||
Maximum [Member] | Five-Year Credit Agreement dated May 30, 2018 [Member] | |||||||||||||||||
Debt Instrument [Line Items] | |||||||||||||||||
Line of Credit Facility, Unused Capacity, Commitment Fee Percentage | 0.25% | ||||||||||||||||
Eurodollar [Member] | Five-Year Credit Agreement dated May 30, 2018 [Member] | |||||||||||||||||
Debt Instrument [Line Items] | |||||||||||||||||
Applicable interest rate margin | 1.00% | ||||||||||||||||
Federal Funds Effective Swap Rate [Member] | Five-Year Credit Agreement dated May 30, 2018 [Member] | |||||||||||||||||
Debt Instrument [Line Items] | |||||||||||||||||
Applicable interest rate margin | 0.50% | ||||||||||||||||
Education [Member] | Interest Rate Swap [Member] | |||||||||||||||||
Debt Instrument [Line Items] | |||||||||||||||||
Derivative, Notional Amount | £ | £ 75,000,000 | ||||||||||||||||
Interest rate swap percentage rate | 2.01% | ||||||||||||||||
Derivative, Fixed Interest Rate | 0.51% | ||||||||||||||||
Basis Spread on Variable Rate | 1.50% | ||||||||||||||||
Education [Member] | Kaplan Four Year Credit Agreement Dated July 14, 2016 [Member] | |||||||||||||||||
Debt Instrument [Line Items] | |||||||||||||||||
Credit facility current borrowing capacity | £ | £ 75,000,000 | ||||||||||||||||
Line of Credit | £ | £ 75,000,000 | ||||||||||||||||
Debt covenant net leverage ratio, maximum | 3.5 | ||||||||||||||||
Debt covenant interest coverage ratio, minimum | 3.5 | ||||||||||||||||
Debt Instrument, Term | 4 years | ||||||||||||||||
Education [Member] | London Interbank Offered Rate (LIBOR) [Member] | Minimum [Member] | Kaplan Four Year Credit Agreement Dated July 14, 2016 [Member] | |||||||||||||||||
Debt Instrument [Line Items] | |||||||||||||||||
Applicable interest rate margin | 1.25% | ||||||||||||||||
Education [Member] | London Interbank Offered Rate (LIBOR) [Member] | Maximum [Member] | Kaplan Four Year Credit Agreement Dated July 14, 2016 [Member] | |||||||||||||||||
Debt Instrument [Line Items] | |||||||||||||||||
Applicable interest rate margin | 1.75% | ||||||||||||||||
Debt Instrument, Redemption, First Anniversary [Member] | Education [Member] | Kaplan Four Year Credit Agreement Dated July 14, 2016 [Member] | |||||||||||||||||
Debt Instrument [Line Items] | |||||||||||||||||
Debt Instrument Price Percentage Of Outstanding Balance Redeemed | 6.66% | ||||||||||||||||
Debt Instrument, Redemption, Second Anniversary [Member] | Education [Member] | Kaplan Four Year Credit Agreement Dated July 14, 2016 [Member] | |||||||||||||||||
Debt Instrument [Line Items] | |||||||||||||||||
Debt Instrument Price Percentage Of Outstanding Balance Redeemed | 6.66% | ||||||||||||||||
Debt Instrument, Redemption, Third Anniversary [Member] | Education [Member] | Kaplan Four Year Credit Agreement Dated July 14, 2016 [Member] | |||||||||||||||||
Debt Instrument [Line Items] | |||||||||||||||||
Debt Instrument Price Percentage Of Outstanding Balance Redeemed | 6.66% | ||||||||||||||||
Securities Subject to Mandatory Redemption [Member] | |||||||||||||||||
Debt Instrument [Line Items] | |||||||||||||||||
Interest income | $ 2,300,000 | ||||||||||||||||
Interest expense | $ 2,700,000 | ||||||||||||||||
Securities Subject to Mandatory Redemption [Member] | Graham Healthcare Group [Member] | |||||||||||||||||
Debt Instrument [Line Items] | |||||||||||||||||
Interest expense | $ 6,200,000 | ||||||||||||||||
[1] | The carrying value is net of $5.3 million of unamortized debt issuance costs as of December 31, 2018. | ||||||||||||||||
[2] | The carrying value is net of $0.2 million and $0.4 million of unamortized debt issuance costs as of December 31, 2018 and 2017, respectively. |
Debt (Details 1)
Debt (Details 1) - USD ($) $ in Thousands | Dec. 31, 2018 | Dec. 31, 2017 | |
Debt Instrument [Line Items] | |||
Other indebtedness | $ 96 | $ 109 | |
Total Debt | 477,137 | 493,287 | |
Less: current portion | (6,360) | (6,726) | |
Total Long-Term Debt | 470,777 | 486,561 | |
5.75% Unsecured Notes due June 1, 2026 [Member] | |||
Debt Instrument [Line Items] | |||
Unsecured notes | [1] | 394,675 | 0 |
Unamortized debt issuance costs | 5,300 | ||
7.25% Unsecured Notes due February 1, 2019 [Member] | |||
Debt Instrument [Line Items] | |||
Unsecured notes | 0 | 399,507 | |
Kaplan Four Year Credit Agreement Dated July 14, 2016 [Member] | |||
Debt Instrument [Line Items] | |||
Line of Credit | [2] | 82,366 | 93,671 |
Unamortized debt issuance costs | $ 200 | $ 400 | |
[1] | The carrying value is net of $5.3 million of unamortized debt issuance costs as of December 31, 2018. | ||
[2] | The carrying value is net of $0.2 million and $0.4 million of unamortized debt issuance costs as of December 31, 2018 and 2017, respectively. |
Fair Value Measurements (Narrat
Fair Value Measurements (Narrative) (Details) - USD ($) $ in Thousands | 3 Months Ended | 12 Months Ended | ||||||||||
Dec. 31, 2018 | Sep. 30, 2018 | Jun. 30, 2018 | Mar. 31, 2018 | Dec. 31, 2017 | Sep. 30, 2017 | Jun. 30, 2017 | Mar. 31, 2017 | Sep. 30, 2016 | Dec. 31, 2018 | Dec. 31, 2017 | Dec. 31, 2016 | |
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||||||||||||
Gains on cost method investments | $ 3,200 | $ 8,500 | $ 11,663 | $ 0 | $ 0 | |||||||
Impairment of goodwill and other long-lived assets | $ 0 | $ 8,109 | $ 0 | $ 0 | $ 78 | $ 312 | $ 9,224 | $ 0 | $ 8,109 | 9,614 | 1,603 | |
Impairment of cost method investment | $ (200) | (29,365) | ||||||||||
Vocational School Company [Member] | ||||||||||||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||||||||||||
Impairment of cost method investment | $ (12,000) | $ (15,000) | $ (27,000) |
Fair Value Measurements (Detail
Fair Value Measurements (Details 1) - USD ($) $ in Thousands | Dec. 31, 2018 | Dec. 31, 2017 | |
Assets | |||
Money market investments | $ 75,500 | $ 217,600 | |
Marketable equity securities | 496,390 | ||
Marketable equity securities | 536,315 | ||
Fair Value, Measurements, Recurring [Member] | |||
Assets | |||
Money market investments | [1] | 75,500 | 217,628 |
Marketable equity securities | [2] | 496,390 | |
Marketable equity securities | [2] | 536,315 | |
Other current investments | [3] | 18,191 | 20,838 |
Interest rate swap | [4] | 369 | |
Total Financial Assets | 590,450 | 774,781 | |
Liabilities | |||
Deferred compensation plan liabilities | [5] | 36,080 | 43,414 |
Interest rate swap | [6] | 244 | |
Mandatorily Redeemable Noncontrolling Interest | [7] | 10,331 | |
Total Financial Liabilities | 53,989 | ||
Level 1 [Member] | Fair Value, Measurements, Recurring [Member] | |||
Assets | |||
Money market investments | [1] | 0 | 0 |
Marketable equity securities | [2] | 496,390 | |
Marketable equity securities | [2] | 536,315 | |
Other current investments | [3] | 11,203 | 9,831 |
Interest rate swap | [4] | 0 | |
Total Financial Assets | 507,593 | 546,146 | |
Liabilities | |||
Deferred compensation plan liabilities | [5] | 0 | 0 |
Interest rate swap | [6] | 0 | |
Mandatorily Redeemable Noncontrolling Interest | [7] | 0 | |
Total Financial Liabilities | 0 | ||
Level 2 [Member] | Fair Value, Measurements, Recurring [Member] | |||
Assets | |||
Money market investments | [1] | 75,500 | 217,628 |
Marketable equity securities | [2] | 0 | |
Marketable equity securities | [2] | 0 | |
Other current investments | [3] | 6,988 | 11,007 |
Interest rate swap | [4] | 369 | |
Total Financial Assets | 82,857 | 228,635 | |
Liabilities | |||
Deferred compensation plan liabilities | [5] | $ 36,080 | 43,414 |
Interest rate swap | [6] | 244 | |
Mandatorily Redeemable Noncontrolling Interest | [7] | 0 | |
Total Financial Liabilities | 43,658 | ||
Level 3 [Member] | Fair Value, Measurements, Recurring [Member] | |||
Assets | |||
Money market investments | [1] | 0 | |
Marketable equity securities | [2] | 0 | |
Other current investments | [3] | 0 | |
Total Financial Assets | 0 | ||
Liabilities | |||
Deferred compensation plan liabilities | [5] | 0 | |
Interest rate swap | [6] | 0 | |
Mandatorily Redeemable Noncontrolling Interest | [7] | 10,331 | |
Total Financial Liabilities | $ 10,331 | ||
[1] | The Company’s money market investments are included in cash, cash equivalents and restricted cash and the value considers the liquidity of the counterparty. | ||
[2] | The Company’s investments in marketable equity securities are held in common shares of U.S. corporations that are actively traded on U.S. stock exchanges. Price quotes for these shares are readily available. Investments in marketable securities were classified as available-for-sale in 2017 prior to the adoption of the new accounting guidance (see Note 2). | ||
[3] | Includes U.S. Government Securities, corporate bonds, mutual funds and time deposits. These investments are valued using a market approach based on the quoted market prices of the security or inputs that include quoted market prices for similar instruments and are classified as either Level 1 or Level 2 in the fair value hierarchy | ||
[4] | Included in Deferred Charges and Other Assets. 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. | ||
[5] | Includes Graham Holdings Company’s Deferred Compensation Plan and supplemental savings plan benefits under the Graham Holdings Company’s Supplemental Executive Retirement Plan, which are included in accrued compensation and related benefits. These plans measure the market value of a participant’s balance in a notional investment account that is comprised primarily of mutual funds, which are based on observable market prices. However, since the deferred compensation obligations are not exchanged in an active market, they are classified as Level 2 in the fair value hierarchy. Realized and unrealized gains (losses) on deferred compensation are included in operating income. | ||
[6] | Included in Other liabilities. The Company utilized a market approach model using the notional amount of the interest rate swap multiplied by the observable inputs of time to maturity and market interest rates. | ||
[7] | The fair value of the mandatorily redeemable noncontrolling interest is based on an EBITDA multiple, adjusted for working capital and other items, which approximates fair value. |
Revenue from Contracts with C_3
Revenue from Contracts with Customers (Narrative) (Details) $ in Millions | 12 Months Ended |
Dec. 31, 2018USD ($) | |
Disaggregation of Revenue [Line Items] | |
Deferred Revenue, Revenue Recognized | $ 259.2 |
Test Preparation [Member] | Long-term Contract with Customer [Member] | |
Disaggregation of Revenue [Line Items] | |
Revenue, Remaining Performance Obligation, Amount | $ 5.6 |
Revenue Remaining Performance Obligation Percentage of Revenue Expected to be Recognized Over Next 12 Months | 81.00% |
Transferred over Time [Member] | |
Disaggregation of Revenue [Line Items] | |
Percentage of Revenue | 80.00% |
Transferred at Point in Time [Member] | |
Disaggregation of Revenue [Line Items] | |
Percentage of Revenue | 20.00% |
U.S. [Member] | |
Disaggregation of Revenue [Line Items] | |
Percentage of Revenue | 76.00% |
Non U.S. [Member] | |
Disaggregation of Revenue [Line Items] | |
Percentage of Revenue | 24.00% |
Revenue from Contracts with C_4
Revenue from Contracts with Customers (Disaggregation of Revenue) (Details 1) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2018 | Dec. 31, 2017 | Dec. 31, 2016 | |
Disaggregation of Revenue [Line Items] | |||
Revenue | $ 2,695,966 | $ 2,591,846 | $ 2,481,890 |
Intersegment Elimination [Member] | |||
Disaggregation of Revenue [Line Items] | |||
Revenue | (100) | (51) | (139) |
Kaplan International [Member] | |||
Disaggregation of Revenue [Line Items] | |||
Revenue | 719,982 | 697,999 | 696,362 |
Higher Education [Member] | |||
Disaggregation of Revenue [Line Items] | |||
Revenue | 342,085 | 431,425 | 501,784 |
Test Preparation [Member] | |||
Disaggregation of Revenue [Line Items] | |||
Revenue | 256,102 | 273,298 | 286,556 |
Professional (U.S.) [Member] | |||
Disaggregation of Revenue [Line Items] | |||
Revenue | 134,187 | 115,839 | 115,263 |
Kaplan Corporate and Other [Member] | |||
Disaggregation of Revenue [Line Items] | |||
Revenue | 1,142 | 294 | 214 |
Education Intersegment Eliminations [Member] | |||
Disaggregation of Revenue [Line Items] | |||
Revenue | (2,483) | (2,079) | (1,718) |
Education [Member] | |||
Disaggregation of Revenue [Line Items] | |||
Revenue | 1,451,015 | 1,516,776 | 1,598,461 |
Television Broadcasting [Member] | |||
Disaggregation of Revenue [Line Items] | |||
Revenue | 505,549 | 409,916 | 409,718 |
Manufacturing [Member] | |||
Disaggregation of Revenue [Line Items] | |||
Revenue | 487,619 | 414,193 | 241,604 |
Health Care [Member] | |||
Disaggregation of Revenue [Line Items] | |||
Revenue | 149,275 | 154,202 | 146,962 |
SocialCode [Member] | |||
Disaggregation of Revenue [Line Items] | |||
Revenue | 58,728 | 62,077 | 58,851 |
Other Businesses [Member] | |||
Disaggregation of Revenue [Line Items] | |||
Revenue | $ 43,880 | $ 34,733 | $ 26,433 |
Revenue from Contracts with C_5
Revenue from Contracts with Customers Revenue from Contracts with Customers (Contract Liability) (Details) - USD ($) $ in Thousands | 12 Months Ended | |
Dec. 31, 2018 | Jan. 01, 2018 | |
Revenue from Contract with Customer [Abstract] | ||
Deferred Revenue | $ 311,214 | $ 342,640 |
Deferred Revenue, Period Decrease Percentage | (9.00%) |
Revenue from Contracts with C_6
Revenue from Contracts with Customers Revenue from Contracts with Customers (Capitalized Contract Cost) (Details) - USD ($) $ in Thousands | 12 Months Ended | |
Dec. 31, 2018 | Jan. 01, 2018 | |
Revenue from Contract with Customer [Abstract] | ||
Contract Costs Capitalized During the Period | $ 55,664 | |
Costs amortized during the period | (49,284) | |
Change in Capitalized Contract Cost, Other | (1,112) | |
Balance of costs to obtain a contract | $ 21,311 | $ 16,043 |
Capital Stock, Stock Awards, _2
Capital Stock, Stock Awards, and Stock Options (Narrative) (Details) - USD ($) | 1 Months Ended | 2 Months Ended | 12 Months Ended | |||
Jan. 31, 2019 | Feb. 25, 2019 | Dec. 31, 2018 | Dec. 31, 2017 | Dec. 31, 2016 | Nov. 09, 2017 | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||||
Cost of shares repurchased by company | $ 118,030,000 | $ 50,770,000 | $ 108,948,000 | |||
Shares subject to award outstanding | 32,200 | 51,575 | ||||
Number of shares forfeited due to modification | 5,475 | |||||
Number of shares awarded in 2019 | 375 | |||||
Exercised, Number of Shares | 588 | |||||
Number of shares granted | 0 | |||||
Stock options outstanding | 184,932 | 185,520 | ||||
Dividends declared per common share | $ 5.32 | $ 5.08 | $ 4.84 | |||
Restricted Stock [Member] | ||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||||
Shares excluded from earnings per share | 2,650 | 5,250 | 5,450 | |||
Kaplan Stock Option [Member] | ||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||||
Exercised, Number of Shares | 0 | 0 | 0 | |||
Number of shares granted | 0 | 0 | 0 | |||
Stock options outstanding | 0 | |||||
Employee Stock Option [Member] | ||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||||
Shares excluded from earnings per share | 104,000 | 104,000 | 102,000 | |||
Maximum [Member] | Kaplan Stock Option [Member] | ||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||||
Vesting period | 5 years | |||||
Minimum [Member] | Kaplan Stock Option [Member] | ||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||||
Vesting period | 4 years | |||||
Education [Member] | Kaplan Stock Option and Restricted Stock [Member] | ||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||||
Stock-based compensation expense | $ 500,000 | $ 1,200,000 | $ 600,000 | |||
Accrual balance related to stock based compensation | 11,300,000 | |||||
Stock compensation payouts | $ 0 | $ 0 | $ 0 | |||
Class B Common Stock [Member] | ||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||||
Right to elect Board of Directors percentage | 30.00% | |||||
Shares repurchased by company | 199,023 | 88,361 | 229,498 | |||
Cost of shares repurchased by company | $ 118,000,000 | $ 50,800,000 | $ 108,900,000 | |||
Number of shares authorized to be repurchased | 500,000 | |||||
Number of shares authorized to be repurchased remaining under previous authorization | 163,237 | |||||
Authorized shares remaining for repurchase | 273,655 | |||||
Market value of company's stock | $ 640.58 | |||||
Class B Common Stock [Member] | Restricted Stock [Member] | ||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||||
Share awards outstanding, restriction will lapse in 2019 | 18,500 | |||||
Share awards outstanding, restriction will lapse in 2020 | 250 | |||||
Share awards outstanding, restriction will lapse in 2021 | 13,450 | |||||
Stock-based compensation expense | $ 4,400,000 | 8,100,000 | 11,000,000 | |||
Total unrecognized compensation expense | $ 3,600,000 | |||||
Years over which cost expected to be recognized | 11 months 4 days | |||||
Class B Common Stock [Member] | Employee Stock Option [Member] | ||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||||
Stock-based compensation expense | $ 2,000,000 | $ 2,000,000 | $ 2,400,000 | |||
Total unrecognized compensation expense | $ 4,400,000 | |||||
Years over which cost expected to be recognized | 2 years 3 months 18 days | |||||
Options outstanding exercisable now | 145,138 | |||||
Options outstanding exercisable in 2019 | 17,333 | |||||
Options outstanding exercisable in 2020 | 17,334 | |||||
Options outstanding exercisable in 2021 | 4,459 | |||||
Options outstanding exercisable in 2022 | 333 | |||||
Options outstanding exercisable in 2023 | 335 | |||||
Intrinsic value of options outstanding | $ 25,800,000 | |||||
Intrinsic value of options exercisable | 25,800,000 | |||||
Intrinsic value of options unvested | $ 0 | |||||
Options unvested, shares | 39,794 | 57,126 | ||||
Options unvested, average exercise price | $ 770.29 | $ 770.67 | ||||
Options unvested, weighted average remaining contractual term, years | 6 years 3 months 18 days | 7 years 2 months 12 days | ||||
Exercised, Number of Shares | 588 | 3,476 | 4,726 | |||
Intrinsic value of options exercised | $ 200,000 | $ 700,000 | $ 1,200,000 | |||
Tax benefit from stock option exercises | $ 100,000 | $ 300,000 | $ 500,000 | |||
Weighted average fair value, granted options | $ 120.47 | |||||
Class B Common Stock [Member] | Subsequent Event [Member] | Restricted Stock [Member] | ||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||||
Number of shares awarded in 2019 | 16,665 | |||||
Class B Common Stock [Member] | 2003 Employee Stock Option Plan [Member] | Employee Stock Option [Member] | ||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||||
Shares reserved for stock awards granted under the plan | 1,900,000 | |||||
Shares reserved for issuance | 79,001 | |||||
Class B Common Stock [Member] | 2003 Employee Stock Option Plan [Member] | Maximum [Member] | Employee Stock Option [Member] | ||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||||
Vesting period | 10 years | |||||
Class B Common Stock [Member] | 2003 Employee Stock Option Plan [Member] | Minimum [Member] | Employee Stock Option [Member] | ||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||||
Vesting period | 6 years | |||||
Class B Common Stock [Member] | 2012 Incentive Compensation Plan [Member] | Stock Compensation Plan [Member] | ||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||||
Shares reserved for stock awards granted under the plan | 772,588 | |||||
Shares reserved for issuance | 575,208 | |||||
Shares subject to award outstanding | 138,131 | |||||
Shares available for future awards | 437,077 | |||||
Class B Common Stock [Member] | 2012 Incentive Compensation Plan [Member] | 2017 Options Granted [Member] | ||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||||
Vesting period | 6 years | |||||
Class B Common Stock [Member] | 2012 Incentive Compensation Plan [Member] | Maximum [Member] | Employee Stock Option [Member] | ||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||||
Vesting period | 10 years | |||||
Class B Common Stock [Member] | 2012 Incentive Compensation Plan [Member] | Minimum [Member] | Employee Stock Option [Member] | ||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||||
Vesting period | 6 years | |||||
Kaplan Restricted Stock [Member] | Senior Manager [Member] | ||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||||
Shares subject to award outstanding | 7,206 | |||||
Kaplan Restricted Stock [Member] | Subsequent Event [Member] | ||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||||
Fair value of company common stock | $ 1,575 | |||||
Exercise Price Above Fair Market Value Of Common Stock [Member] | Class B Common Stock [Member] | Employee Stock Option [Member] | ||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||||
Number of shares granted | 0 | 2,000 | 0 |
Capital Stock, Stock Awards, _3
Capital Stock, Stock Awards, and Stock Options (Stock Awards Rollforward) (Details 1) | 12 Months Ended |
Dec. 31, 2018$ / sharesshares | |
Share-based Compensation Arrangement by Share-based Payment Award, Equity Instruments Other than Options, Nonvested, Number of Shares [Roll Forward] | |
Beginning of year, unvested, Number of Shares | shares | 51,575 |
Awarded, Number of Shares | shares | 375 |
Vested, Number of Shares | shares | (14,275) |
Forfeited, Number of Shares | shares | (5,475) |
End of year, unvested, Number of Shares | shares | 32,200 |
Share-based Compensation Arrangement by Share-based Payment Award, Equity Instruments Other than Options, Nonvested, Weighted Average Grant Date Fair Value [Abstract] | |
Beginning of year, Average Grant-Date Fair Value (in dollars per share) | $ / shares | $ 744.07 |
Awarded, Average Grant-Date Fair Value (in dollars per share) | $ / shares | 875.40 |
Vested, Average Grant-Date Fair Value (in dollars per share) | $ / shares | 694.81 |
Forfeited, Average Grant-Date Fair Value (in dollars per share) | $ / shares | 863.21 |
End of year, Average Grant-Date Fair Value (in dollars per share) | $ / shares | $ 747.18 |
Capital Stock, Stock Awards, _4
Capital Stock, Stock Awards, and Stock Options (Stock Options Rollforward) (Details 2) - $ / shares | 12 Months Ended | ||
Dec. 31, 2018 | Dec. 31, 2017 | Dec. 31, 2016 | |
Share-based Compensation Arrangement by Share-based Payment Award, Options, Outstanding [Roll Forward] | |||
Beginning, Number of Shares | 185,520 | ||
Granted, Number of Shares | 0 | ||
Exercised, Number of Shares | (588) | ||
Expired or forfeited, Number of Shares | 0 | ||
End, Number of Shares | 184,932 | 185,520 | |
Share-based Compensation Arrangement by Share-based Payment Award, Options, Outstanding, Weighted Average Exercise Price [Abstract] | |||
Beginning, Average Option Price (in dollars per share) | $ 565.65 | ||
Granted, Average Option Price (in dollars per share) | 0 | ||
Exercised, Average Option Price (in dollars per share) | 281.18 | ||
Expired or forfeited, Average Option Price (in dollars per share) | 0 | ||
End, Average Option Price (in dollars per share) | $ 566.55 | $ 565.65 | |
Employee Stock Option [Member] | Common Class B [Member] | |||
Share-based Compensation Arrangement by Share-based Payment Award, Options, Outstanding [Roll Forward] | |||
Exercised, Number of Shares | (588) | (3,476) | (4,726) |
Capital Stock, Stock Awards, _5
Capital Stock, Stock Awards, and Stock Options (Options Outstanding and Exercisable) (Details 3) - $ / shares | 12 Months Ended | |
Dec. 31, 2018 | Dec. 31, 2017 | |
Share-based Compensation, Shares Authorized under Stock Option Plans, Exercise Price Range [Line Items] | ||
Options Outstanding, Shares Outstanding | 184,932 | 185,520 |
Options Outstanding, Weighted Average Remaining Contractual Life (in years) | 4 years 4 months 24 days | |
Options Outstanding, Weighted Average Exercise Price (in dollars per share) | $ 566.55 | $ 565.65 |
Options Exercisable, Shares Exercisable | 145,138 | |
Options Exercisable, Weighted Average Remaining Contractual Life (in years) | 3 years 10 months 24 days | |
Options Exercisable, Weighted Average Exercise Price (in dollars per share) | $ 510.69 | |
Exercise Price Range of $244-$276 [Member] | ||
Share-based Compensation, Shares Authorized under Stock Option Plans, Exercise Price Range [Line Items] | ||
Low Exercise Price Range | 244 | |
High Exercise Price Range | $ 276 | |
Options Outstanding, Shares Outstanding | 3,674 | |
Options Outstanding, Weighted Average Remaining Contractual Life (in years) | 2 years 6 months | |
Options Outstanding, Weighted Average Exercise Price (in dollars per share) | $ 259.19 | |
Options Exercisable, Shares Exercisable | 3,674 | |
Options Exercisable, Weighted Average Remaining Contractual Life (in years) | 2 years 6 months | |
Options Exercisable, Weighted Average Exercise Price (in dollars per share) | $ 259.19 | |
Exercise Price $325 [Member] | ||
Share-based Compensation, Shares Authorized under Stock Option Plans, Exercise Price Range [Line Items] | ||
Low Exercise Price Range | $ 325 | |
Options Outstanding, Shares Outstanding | 77,258 | |
Options Outstanding, Weighted Average Remaining Contractual Life (in years) | 2 years 1 month 6 days | |
Options Outstanding, Weighted Average Exercise Price (in dollars per share) | $ 325.26 | |
Options Exercisable, Shares Exercisable | 77,258 | |
Options Exercisable, Weighted Average Remaining Contractual Life (in years) | 2 years 1 month 6 days | |
Options Exercisable, Weighted Average Exercise Price (in dollars per share) | $ 325.26 | |
Exercise Price $719 [Member] | ||
Share-based Compensation, Shares Authorized under Stock Option Plans, Exercise Price Range [Line Items] | ||
Low Exercise Price Range | $ 719 | |
Options Outstanding, Shares Outstanding | 77,258 | |
Options Outstanding, Weighted Average Remaining Contractual Life (in years) | 5 years 9 months 18 days | |
Options Outstanding, Weighted Average Exercise Price (in dollars per share) | $ 719.15 | |
Options Exercisable, Shares Exercisable | 51,504 | |
Options Exercisable, Weighted Average Remaining Contractual Life (in years) | 5 years 9 months 18 days | |
Options Exercisable, Weighted Average Exercise Price (in dollars per share) | $ 719.15 | |
Exercise Price Range of $805-$872 [Member] | ||
Share-based Compensation, Shares Authorized under Stock Option Plans, Exercise Price Range [Line Items] | ||
Low Exercise Price Range | 805 | |
High Exercise Price Range | $ 872 | |
Options Outstanding, Shares Outstanding | 26,742 | |
Options Outstanding, Weighted Average Remaining Contractual Life (in years) | 7 years | |
Options Outstanding, Weighted Average Exercise Price (in dollars per share) | $ 865.02 | |
Options Exercisable, Shares Exercisable | 12,702 | |
Options Exercisable, Weighted Average Remaining Contractual Life (in years) | 6 years 10 months 24 days | |
Options Exercisable, Weighted Average Exercise Price (in dollars per share) | $ 866.03 |
Capital Stock, Stock Awards, _6
Capital Stock, Stock Awards, and Stock Options (Fair Value Assumptions) (Details 4) | 12 Months Ended |
Dec. 31, 2017 | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |
Expected life (in years) | 8 years |
Interest rate | 2.28% |
Volatility (percentage) | 26.93% |
Dividend yield | 0.85% |
Capital Stock, Stock Awards, _7
Capital Stock, Stock Awards, and Stock Options (Earnings Per Share) (Details 5) - USD ($) $ / shares in Units, shares in Thousands, $ in Thousands | 3 Months Ended | 12 Months Ended | |||||||||
Dec. 31, 2018 | Sep. 30, 2018 | Jun. 30, 2018 | Mar. 31, 2018 | Dec. 31, 2017 | Sep. 30, 2017 | Jun. 30, 2017 | Mar. 31, 2017 | Dec. 31, 2018 | Dec. 31, 2017 | Dec. 31, 2016 | |
Schedule of Earnings Per Share, Basic and Diluted, Including Two Class Method [Line Items] | |||||||||||
Net income attributable to Graham Holdings Company common stockholders | $ 56,685 | $ 125,064 | $ 46,566 | $ 42,891 | $ 214,178 | $ 24,784 | $ 41,996 | $ 21,086 | $ 271,206 | $ 302,044 | $ 168,590 |
Less: Dividends paid–common stock outstanding and unvested restricted shares | (28,617) | (28,329) | (27,325) | ||||||||
Undistributed earnings | $ 242,589 | $ 273,715 | $ 141,265 | ||||||||
Percent allocated to common stockholders | 99.39% | 99.06% | 98.79% | ||||||||
Undistributed earnings allocated to common stockholders | $ 241,115 | $ 271,150 | $ 139,562 | ||||||||
Add: Dividends paid–common stock outstanding | 28,423 | 28,060 | 26,962 | ||||||||
Numerator for basic earnings per share | 269,538 | 299,210 | 166,524 | ||||||||
Add: Additional undistributed earnings due to dilutive stock options | 10 | 17 | 9 | ||||||||
Numerator for diluted earnings per share | $ 269,548 | $ 299,227 | $ 166,533 | ||||||||
Basic average number of common shares outstanding (in shares) | 5,270 | 5,302 | 5,325 | 5,436 | 5,473 | 5,518 | 5,539 | 5,535 | 5,333 | 5,516 | 5,559 |
Denominator for diluted earnings per share (shares) | 5,370 | 5,552 | 5,589 | ||||||||
Basic net income per common share (in usd per share) | $ 10.69 | $ 23.43 | $ 8.69 | $ 7.84 | $ 38.76 | $ 4.45 | $ 7.51 | $ 3.77 | $ 50.55 | $ 54.24 | $ 29.95 |
Income Per Share From Continuing Operations To Common Stockholders [Abstract] | |||||||||||
Earnings Per Share, Diluted (in usd per share) | $ 10.61 | $ 23.28 | $ 8.63 | $ 7.78 | $ 38.52 | $ 4.42 | $ 7.46 | $ 3.75 | $ 50.20 | $ 53.89 | $ 29.80 |
Employee Stock Option [Member] | |||||||||||
Schedule of Earnings Per Share, Basic and Diluted, Including Two Class Method [Line Items] | |||||||||||
Add: Effect of dilutive stock options (shares) | 37 | 36 | 30 |
Capital Stock, Stock Awards, _8
Capital Stock, Stock Awards, and Stock Options (Antidilutive Shares) (Details 6) - shares shares in Thousands | 12 Months Ended | ||
Dec. 31, 2018 | Dec. 31, 2017 | Dec. 31, 2016 | |
Capital Stock, Stock Awards, and Stock Options [Abstract] | |||
Antidilutive Restricted Stock | 23 | 30 | 40 |
Pension and Postretirement Pl_3
Pension and Postretirement Plans (Narrative) (Details) | 2 Months Ended | 3 Months Ended | 10 Months Ended | 12 Months Ended | |||||
Dec. 31, 2018USD ($)Investmentcompanies | Dec. 31, 2018USD ($)Investmentcompanies | Dec. 31, 2017USD ($)Investment | Sep. 30, 2017USD ($) | Dec. 31, 2016USD ($) | Oct. 31, 2018 | Dec. 31, 2018USD ($)multiemployer_planInvestmentcompanies | Dec. 31, 2017USD ($)multiemployer_planInvestment | Dec. 31, 2016USD ($)multiemployer_plan | |
Retirement Benefits Disclosure [Line Items] | |||||||||
Early retirement and special separation benefit program expense | $ 0 | $ 1,825,000 | $ 0 | ||||||
Expense associated with the retirement benefits provided under incentive savings plans | $ 8,600,000 | $ 7,500,000 | $ 7,500,000 | ||||||
Multiemployer Pension Plans [Member] | |||||||||
Retirement Benefits Disclosure [Line Items] | |||||||||
Number of multiemployer plans contributed to | multiemployer_plan | 1 | 1 | 1 | ||||||
Contributions to multiemployer pension plans | $ 100,000 | $ 100,000 | $ 100,000 | ||||||
Pension Plans [Member] | |||||||||
Retirement Benefits Disclosure [Line Items] | |||||||||
Early retirement and special separation benefit program expense | 0 | 1,825,000 | 0 | ||||||
Settlement | $ 26,900,000 | $ 18,000,000 | 26,917,000 | 0 | 17,993,000 | ||||
Accumulated benefit obligation | $ 1,097,300,000 | 1,097,300,000 | $ 1,261,800,000 | 1,097,300,000 | 1,261,800,000 | ||||
Company contributions | 0 | 0 | |||||||
Estimated employer contributions in next fiscal year | $ 0 | $ 0 | 0 | ||||||
Net Periodic Cost (Benefit) for the Year | (74,031,000) | (59,039,000) | (49,104,000) | ||||||
Curtailment | $ 806,000 | $ 0 | 0 | ||||||
Percent of Plan Assets Managed Internally by Company | 46.00% | ||||||||
Percent Of Plan Assets Managed By Investment Companies | 54.00% | ||||||||
Number of investment companies actively managing plan assets | companies | 2 | 2 | 2 | ||||||
Percentage of total plan assets | 100.00% | 100.00% | 100.00% | 100.00% | 100.00% | ||||
Supplemental Executive Retirement Plan (SERP) [Member] | |||||||||
Retirement Benefits Disclosure [Line Items] | |||||||||
Accumulated benefit obligation | $ 102,200,000 | $ 102,200,000 | $ 108,000,000 | $ 102,200,000 | $ 108,000,000 | ||||
Company contributions | 5,694,000 | 5,576,000 | |||||||
Other Postretirement Plans [Member] | |||||||||
Retirement Benefits Disclosure [Line Items] | |||||||||
Company contributions | 782,000 | 879,000 | |||||||
Net Periodic Cost (Benefit) for the Year | (3,679,000) | (2,232,000) | 779,000 | ||||||
Curtailment | $ 3,380,000 | $ 0 | $ 0 | ||||||
Discount rate to determine benefit obligation | 3.69% | 3.69% | 3.11% | 3.69% | 3.11% | ||||
Discount rate to determine periodic cost | 4.04% | 3.11% | 3.31% | 3.45% | |||||
Other Postretirement Plans [Member] | Pre-Age 65 [Member] | |||||||||
Retirement Benefits Disclosure [Line Items] | |||||||||
Assumed health care cost trend rate | 7.41% | 7.41% | 7.41% | ||||||
Direction of change for assumed health care cost trend rate | decreasing | ||||||||
Ultimate health care cost trend rate | 4.50% | 4.50% | 4.50% | ||||||
Year that rate reaches ultimate trend rate | 2,026 | ||||||||
Other Postretirement Plans [Member] | Post-Age 65 [Member] | |||||||||
Retirement Benefits Disclosure [Line Items] | |||||||||
Assumed health care cost trend rate | 7.96% | 7.96% | 7.96% | ||||||
Direction of change for assumed health care cost trend rate | decreasing | ||||||||
Ultimate health care cost trend rate | 4.50% | 4.50% | 4.50% | ||||||
Year that rate reaches ultimate trend rate | 2,026 | ||||||||
Other Postretirement Plans [Member] | Medicare Advantage [Member] | |||||||||
Retirement Benefits Disclosure [Line Items] | |||||||||
Assumed health care cost trend rate | 12.74% | 12.74% | 12.74% | ||||||
Direction of change for assumed health care cost trend rate | decreasing | ||||||||
Ultimate health care cost trend rate | 4.50% | 4.50% | 4.50% | ||||||
Year that rate reaches ultimate trend rate | 2,028 | ||||||||
Berkshire Hathaway Common Stock [Member] | Pension Plans [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] | Pension Plans [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 | $ 945,600,000 | $ 945,600,000 | $ 1,079,300,000 | $ 945,600,000 | $ 1,079,300,000 | ||||
Percentage of total plan assets | 45.00% | 45.00% | 46.00% | 45.00% | 46.00% | ||||
Single Equity Concentration [Member] | Equity securities [Member] | Pension Plans [Member] | |||||||||
Retirement Benefits Disclosure [Line Items] | |||||||||
Number of investments the company's pension plan held which individually exceed 10% of total plan assets | Investment | 1 | 1 | 1 | 1 | 1 | ||||
Single Equity Concentration [Member] | Equity funds [Member] | Pension Plans [Member] | |||||||||
Retirement Benefits Disclosure [Line Items] | |||||||||
Number of investments the company's pension plan held which individually exceed 10% of total plan assets | Investment | 1 | 1 | 1 | 1 | 1 | ||||
Defined Benefit Plan Assets Total [Member] | Concentration In Single Entity, Type Of Industry, Foreign Country Or Individual Fund [Member] | Pension Plans [Member] | |||||||||
Retirement Benefits Disclosure [Line Items] | |||||||||
Minimum percentage of plan assets considered as significant concentrations in pension plans | 10.00% | ||||||||
Separation Incentive Program [Member] | Pension Plans [Member] | Forney [Member] | |||||||||
Retirement Benefits Disclosure [Line Items] | |||||||||
Early retirement and special separation benefit program expense | $ 900,000 | ||||||||
Education [Member] | Separation Incentive Program [Member] | Pension Plans [Member] | |||||||||
Retirement Benefits Disclosure [Line Items] | |||||||||
Early retirement and special separation benefit program expense | $ 900,000 | ||||||||
Maximum [Member] | Foreign Investments [Member] | Pension Plans [Member] | |||||||||
Retirement Benefits Disclosure [Line Items] | |||||||||
Defined benefit plan, target allocation percentage of assets | 23.00% | 23.00% | 23.00% | ||||||
Minimum [Member] | Fixed income securities [Member] | Pension Plans [Member] | |||||||||
Retirement Benefits Disclosure [Line Items] | |||||||||
Defined benefit plan, target allocation percentage of assets | 10.00% | 10.00% | 10.00% |
Pension and Postretirement Pl_4
Pension and Postretirement Plans (Obligation, Asset, and Funding Information) (Details 1) - USD ($) | 12 Months Ended | ||
Dec. 31, 2018 | Dec. 31, 2017 | Dec. 31, 2016 | |
Pension Plans [Member] | |||
Defined Benefit Plan, Change in Benefit Obligation [Roll Forward] | |||
Benefit obligation at begining of year | $ 1,286,694,000 | $ 1,160,897,000 | |
Service cost | 18,221,000 | 18,687,000 | $ 20,461,000 |
Interest cost | 46,787,000 | 47,925,000 | 51,608,000 |
Amendments | 7,183,000 | 75,000 | |
Actuarial (gain) loss | (81,851,000) | 73,191,000 | |
Acquisitions | 0 | 58,600,000 | |
Benefits paid | (63,852,000) | (74,506,000) | |
Special termination benefits | 0 | 1,825,000 | |
Curtailment | (836,000) | 0 | |
Settlement | (95,777,000) | 0 | |
Benefit obligation at end of year | 1,116,569,000 | 1,286,694,000 | 1,160,897,000 |
Defined Benefit Plan, Change in Fair Value of Plan Assets [Roll Forward] | |||
Fair value of assets at beginning of year | 2,343,471,000 | 2,042,490,000 | |
Actual return on plan assets | (63,715,000) | 375,487,000 | |
Employer contributions | 0 | 0 | |
Benefits paid | (63,852,000) | (74,506,000) | |
Settlement | (95,777,000) | 0 | |
Fair value of assets at end of year | 2,120,127,000 | 2,343,471,000 | 2,042,490,000 |
Funded status | 1,003,558,000 | 1,056,777,000 | |
Supplemental Executive Retirement Plan (SERP) [Member] | |||
Defined Benefit Plan, Change in Benefit Obligation [Roll Forward] | |||
Benefit obligation at begining of year | 110,082,000 | 106,526,000 | |
Service cost | 819,000 | 858,000 | 985,000 |
Interest cost | 3,865,000 | 4,233,000 | 4,384,000 |
Amendments | 1,028,000 | 0 | |
Actuarial (gain) loss | (7,552,000) | 4,041,000 | |
Benefits paid | (5,694,000) | (5,576,000) | |
Benefit obligation at end of year | 102,548,000 | 110,082,000 | 106,526,000 |
Defined Benefit Plan, Change in Fair Value of Plan Assets [Roll Forward] | |||
Fair value of assets at beginning of year | 0 | 0 | |
Employer contributions | 5,694,000 | 5,576,000 | |
Benefits paid | (5,694,000) | (5,576,000) | |
Fair value of assets at end of year | 0 | 0 | 0 |
Funded status | (102,548,000) | (110,082,000) | |
Other Postretirement Plans [Member] | |||
Defined Benefit Plan, Change in Benefit Obligation [Roll Forward] | |||
Benefit obligation at begining of year | 22,785,000 | 24,171,000 | |
Service cost | 892,000 | 1,028,000 | 1,386,000 |
Interest cost | 620,000 | 779,000 | 1,230,000 |
Amendments | (12,473,000) | 0 | |
Actuarial (gain) loss | (2,519,000) | (2,830,000) | |
Acquisitions | 0 | 516,000 | |
Benefits paid, net of Medicare subsidy | (782,000) | (879,000) | |
Benefit obligation at end of year | 8,523,000 | 22,785,000 | 24,171,000 |
Defined Benefit Plan, Change in Fair Value of Plan Assets [Roll Forward] | |||
Fair value of assets at beginning of year | 0 | 0 | |
Employer contributions | 782,000 | 879,000 | |
Benefits paid, net of Medicare subsidy | (782,000) | (879,000) | |
Fair value of assets at end of year | 0 | 0 | $ 0 |
Funded status | $ (8,523,000) | $ (22,785,000) |
Pension and Postretirement Pl_5
Pension and Postretirement Plans (Consolidated Balance Sheet) (Details 2) - USD ($) $ in Thousands | Dec. 31, 2018 | Dec. 31, 2017 |
Defined Benefit Plan Disclosure [Line Items] | ||
Noncurrent asset | $ 1,003,558 | $ 1,056,777 |
Pension Plans [Member] | ||
Defined Benefit Plan Disclosure [Line Items] | ||
Noncurrent asset | 1,003,558 | 1,056,777 |
Current liability | 0 | 0 |
Noncurrent liability | 0 | 0 |
Recognized asset (liability) | 1,003,558 | 1,056,777 |
Supplemental Executive Retirement Plan (SERP) [Member] | ||
Defined Benefit Plan Disclosure [Line Items] | ||
Noncurrent asset | 0 | 0 |
Current liability | (6,321) | (5,838) |
Noncurrent liability | (96,227) | (104,244) |
Recognized asset (liability) | (102,548) | (110,082) |
Other Postretirement Plans [Member] | ||
Defined Benefit Plan Disclosure [Line Items] | ||
Current liability | (1,399) | (1,920) |
Noncurrent liability | (7,124) | (20,865) |
Recognized asset (liability) | $ (8,523) | $ (22,785) |
Pension and Postretirement Pl_6
Pension and Postretirement Plans (Key Assumptions - Obligation) (Details 3) - Benefit Obligation [Member] | 12 Months Ended | |
Dec. 31, 2018 | Dec. 31, 2017 | |
Pension Plans [Member] | ||
Defined Benefit Plan Disclosure [Line Items] | ||
Discount rate (percent) | 4.30% | 3.60% |
Cash balance interest crediting rate | 3.50% | 2.23% |
Ultimate cash balance interest crediting rate | 4.30% | 3.00% |
Year that reaches ultimate cash balance interest crediting rate | 2,021 | 2,020 |
Supplemental Executive Retirement Plan (SERP) [Member] | ||
Defined Benefit Plan Disclosure [Line Items] | ||
Discount rate (percent) | 4.30% | 3.60% |
Cash balance interest crediting rate | 0.00% | 0.00% |
Maximum [Member] | Pension Plans [Member] | ||
Defined Benefit Plan Disclosure [Line Items] | ||
Rate of compensation increase (percent) | 5.00% | 5.00% |
Maximum [Member] | Supplemental Executive Retirement Plan (SERP) [Member] | ||
Defined Benefit Plan Disclosure [Line Items] | ||
Rate of compensation increase (percent) | 5.00% | 5.00% |
Minimum [Member] | Pension Plans [Member] | ||
Defined Benefit Plan Disclosure [Line Items] | ||
Rate of compensation increase (percent) | 1.00% | 1.00% |
Minimum [Member] | Supplemental Executive Retirement Plan (SERP) [Member] | ||
Defined Benefit Plan Disclosure [Line Items] | ||
Rate of compensation increase (percent) | 1.00% | 1.00% |
Pension and Postretirement Pl_7
Pension and Postretirement Plans (Future Estimated Benefit Payments) (Details 4) $ in Thousands | Dec. 31, 2018USD ($) |
Pension Plans [Member] | |
Defined Benefit Plan Disclosure [Line Items] | |
2,019 | $ 76,245 |
2,020 | 76,715 |
2,021 | 75,956 |
2,022 | 75,909 |
2,023 | 75,389 |
2024-2028 | 367,130 |
Supplemental Executive Retirement Plan (SERP) [Member] | |
Defined Benefit Plan Disclosure [Line Items] | |
2,019 | 6,456 |
2,020 | 6,743 |
2,021 | 6,946 |
2,022 | 7,078 |
2,023 | 7,149 |
2024-2028 | 35,656 |
Other Postretirement Plans [Member] | |
Defined Benefit Plan Disclosure [Line Items] | |
2,019 | 1,399 |
2,020 | 1,273 |
2,021 | 1,083 |
2,022 | 1,015 |
2,023 | 856 |
2024-2028 | $ 2,308 |
Pension and Postretirement Pl_8
Pension and Postretirement Plans (Total Benefit/Cost) (Details 5) - USD ($) $ in Thousands | 3 Months Ended | 12 Months Ended | |||
Dec. 31, 2018 | Dec. 31, 2016 | Dec. 31, 2018 | Dec. 31, 2017 | Dec. 31, 2016 | |
Defined Benefit Plan Disclosure [Line Items] | |||||
Early retirement programs and special separation benefit expense | $ 0 | $ 1,825 | $ 0 | ||
Total Cost (Benefit) for the Year | 18,221 | 18,687 | 20,461 | ||
Defined Benefit Plan, Amounts Recognized in Other Comprehensive Income (Loss) [Abstract] | |||||
Current year actuarial gain (loss) | 101,013 | (179,674) | 133,915 | ||
Current year prior service cost | (4,262) | 75 | 0 | ||
Amortization of prior service credit (cost) | 947 | (477) | (419) | ||
Recognized net actuarial gain (loss) | 11,349 | 6,527 | (1,157) | ||
Curtailments and settlements | 30,267 | 0 | 17,993 | ||
Total Recognized in Other Comprehensive Income (Before Tax Effects) | 139,314 | (173,549) | 150,332 | ||
Pension Plans [Member] | |||||
Defined Benefit Plan Disclosure [Line Items] | |||||
Service cost | 18,221 | 18,687 | 20,461 | ||
Interest cost | 46,787 | 47,925 | 51,608 | ||
Expected return on assets | (129,220) | (121,411) | (121,470) | ||
Amortization of prior service cost (credit) | 150 | 170 | 297 | ||
Recognized actuarial loss (gain) | (9,969) | (4,410) | 0 | ||
Net Periodic Cost (Benefit) for the Year | (74,031) | (59,039) | (49,104) | ||
Curtailment | (806) | 0 | 0 | ||
Settlement | $ (26,900) | $ (18,000) | (26,917) | 0 | (17,993) |
Early retirement programs and special separation benefit expense | 0 | 1,825 | 0 | ||
Total Cost (Benefit) for the Year | (101,754) | (57,214) | (67,097) | ||
Defined Benefit Plan, Amounts Recognized in Other Comprehensive Income (Loss) [Abstract] | |||||
Current year actuarial gain (loss) | 111,084 | (180,885) | 147,779 | ||
Current year prior service cost | 7,183 | 75 | 0 | ||
Amortization of prior service credit (cost) | (150) | (170) | (297) | ||
Recognized net actuarial gain (loss) | 9,969 | 4,410 | 0 | ||
Curtailments and settlements | 26,887 | 0 | 17,993 | ||
Total Recognized in Other Comprehensive Income (Before Tax Effects) | 154,973 | (176,570) | 165,475 | ||
Total Recognized in Total (Benefit) Cost and Other Comprehensive Income (Before Tax Effects) | 53,219 | (233,784) | 98,378 | ||
Supplemental Executive Retirement Plan (SERP) [Member] | |||||
Defined Benefit Plan Disclosure [Line Items] | |||||
Service cost | 819 | 858 | 985 | ||
Interest cost | 3,865 | 4,233 | 4,384 | ||
Amortization of prior service cost (credit) | 311 | 455 | 457 | ||
Recognized actuarial loss (gain) | 2,403 | 1,774 | 2,659 | ||
Total Cost (Benefit) for the Year | 7,398 | 7,320 | 8,485 | ||
Defined Benefit Plan, Amounts Recognized in Other Comprehensive Income (Loss) [Abstract] | |||||
Current year actuarial gain (loss) | (7,552) | 4,041 | 1,120 | ||
Current year prior service cost | 1,028 | 0 | 0 | ||
Amortization of prior service credit (cost) | (311) | (455) | (457) | ||
Recognized net actuarial gain (loss) | (2,403) | (1,774) | (2,659) | ||
Total Recognized in Other Comprehensive Income (Before Tax Effects) | (9,238) | 1,812 | (1,996) | ||
Total Recognized in Total (Benefit) Cost and Other Comprehensive Income (Before Tax Effects) | (1,840) | 9,132 | 6,489 | ||
Other Postretirement Plans [Member] | |||||
Defined Benefit Plan Disclosure [Line Items] | |||||
Service cost | 892 | 1,028 | 1,386 | ||
Interest cost | 620 | 779 | 1,230 | ||
Amortization of prior service cost (credit) | (1,408) | (148) | (335) | ||
Recognized actuarial loss (gain) | (3,783) | (3,891) | (1,502) | ||
Net Periodic Cost (Benefit) for the Year | (3,679) | (2,232) | 779 | ||
Curtailment | (3,380) | 0 | 0 | ||
Total Cost (Benefit) for the Year | (7,059) | (2,232) | 779 | ||
Defined Benefit Plan, Amounts Recognized in Other Comprehensive Income (Loss) [Abstract] | |||||
Current year actuarial gain (loss) | (2,519) | (2,830) | (14,984) | ||
Current year prior service cost | (12,473) | 0 | 0 | ||
Amortization of prior service credit (cost) | 1,408 | 148 | 335 | ||
Recognized net actuarial gain (loss) | 3,783 | 3,891 | 1,502 | ||
Curtailments and settlements | 3,380 | 0 | 0 | ||
Total Recognized in Other Comprehensive Income (Before Tax Effects) | (6,421) | 1,209 | (13,147) | ||
Total Recognized in Total (Benefit) Cost and Other Comprehensive Income (Before Tax Effects) | $ (13,480) | $ (1,023) | $ (12,368) |
Pension and Postretirement Pl_9
Pension and Postretirement Plans (Key Assumptions - Cost) (Details 6) - Periodic Cost [Member] | 3 Months Ended | 9 Months Ended | 12 Months Ended | ||||
Mar. 23, 2018 | [1] | Dec. 31, 2018 | [1] | Dec. 31, 2018 | Dec. 31, 2017 | Dec. 31, 2016 | |
Pension Plans [Member] | |||||||
Defined Benefit Plan Disclosure [Line Items] | |||||||
Discount rate (percent) | 3.60% | 4.00% | 4.10% | 4.30% | |||
Expected return on plan assets (percent) | 6.25% | 6.25% | 6.50% | ||||
Rate of compensation increase (percent) | 4.00% | ||||||
Cash balance interest crediting rate | 2.23% | 1.57% | 1.41% | ||||
Ultimate cash balance interest crediting rate | 3.00% | 3.00% | 3.00% | ||||
Year that reaches ultimate cash balance interest crediting rate | 2,020 | 2,020 | 2,019 | ||||
Pension Plans [Member] | Minimum [Member] | |||||||
Defined Benefit Plan Disclosure [Line Items] | |||||||
Rate of compensation increase (percent) | 1.00% | 1.00% | |||||
Pension Plans [Member] | Maximum [Member] | |||||||
Defined Benefit Plan Disclosure [Line Items] | |||||||
Rate of compensation increase (percent) | 5.00% | 5.00% | |||||
Supplemental Executive Retirement Plan (SERP) [Member] | |||||||
Defined Benefit Plan Disclosure [Line Items] | |||||||
Discount rate (percent) | 3.60% | 4.10% | 4.30% | ||||
Expected return on plan assets (percent) | 0.00% | 0.00% | 0.00% | ||||
Rate of compensation increase (percent) | 4.00% | ||||||
Cash balance interest crediting rate | 0.00% | 0.00% | 0.00% | ||||
Supplemental Executive Retirement Plan (SERP) [Member] | Minimum [Member] | |||||||
Defined Benefit Plan Disclosure [Line Items] | |||||||
Rate of compensation increase (percent) | 1.00% | 1.00% | |||||
Supplemental Executive Retirement Plan (SERP) [Member] | Maximum [Member] | |||||||
Defined Benefit Plan Disclosure [Line Items] | |||||||
Rate of compensation increase (percent) | 5.00% | 5.00% | |||||
[1] | As a result of the Kaplan University transaction, the Company remeasured the accumulated and projected benefit obligation of the pension plan as of March 22, 2018. The remeasurement changed the discount rate from 3.6% for the period January 1 to March 23, 2018 to 4.0% for the period after March 23, 2018. |
Pension and Postretirement P_10
Pension and Postretirement Plans (Accumulated Other Comprehensive Income) (Details 7) - USD ($) $ in Thousands | Dec. 31, 2018 | Dec. 31, 2017 |
Defined Benefit Plan Disclosure [Line Items] | ||
Net amount | $ (232,836) | $ (334,536) |
Pension Plans [Member] | ||
Defined Benefit Plan Disclosure [Line Items] | ||
Unrecognized actuarial (gain) loss | (313,809) | (461,779) |
Unrecognized prior service cost | 7,273 | 270 |
Gross amount | (306,536) | (461,509) |
Deferred tax liability (asset) | 82,765 | 124,607 |
Net amount | (223,771) | (336,902) |
Supplemental Executive Retirement Plan (SERP) [Member] | ||
Defined Benefit Plan Disclosure [Line Items] | ||
Unrecognized actuarial (gain) loss | 17,270 | 27,225 |
Unrecognized prior service cost | 1,037 | 320 |
Gross amount | 18,307 | 27,545 |
Deferred tax liability (asset) | (4,943) | (7,437) |
Net amount | 13,364 | 20,108 |
Other Postretirement Plans [Member] | ||
Defined Benefit Plan Disclosure [Line Items] | ||
Unrecognized actuarial (gain) loss | (22,861) | (24,125) |
Unrecognized prior service cost | (7,863) | (178) |
Gross amount | (30,724) | (24,303) |
Deferred tax liability (asset) | 8,295 | 6,561 |
Net amount | $ (22,429) | $ (17,742) |
Pension and Postretirement P_11
Pension and Postretirement Plans (Asset Allocation) (Details 8) - Pension Plans [Member] | Dec. 31, 2018 | Dec. 31, 2017 |
Defined Benefit Plan Disclosure [Line Items] | ||
Defined Benefit Plan Assets Allocation (Percent) | 100.00% | 100.00% |
U.S. equities | ||
Defined Benefit Plan Disclosure [Line Items] | ||
Defined Benefit Plan Assets Allocation (Percent) | 53.00% | 53.00% |
U.S. stock index fund [Member] | ||
Defined Benefit Plan Disclosure [Line Items] | ||
Defined Benefit Plan Assets Allocation (Percent) | 28.00% | 30.00% |
U.S. fixed income [Member] | ||
Defined Benefit Plan Disclosure [Line Items] | ||
Defined Benefit Plan Assets Allocation (Percent) | 13.00% | 11.00% |
International equities | ||
Defined Benefit Plan Disclosure [Line Items] | ||
Defined Benefit Plan Assets Allocation (Percent) | 6.00% | 6.00% |
Pension and Postretirement P_12
Pension and Postretirement Plans (Fair Value of Pension Plan Assets) (Details 9) - USD ($) $ in Thousands | Dec. 31, 2018 | Dec. 31, 2017 | Dec. 31, 2016 |
Pension Plan [Member] | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Pension plan assets at fair value | $ 2,120,127 | $ 2,343,471 | $ 2,042,490 |
Fair Value, Measurements, Recurring [Member] | Pension Plan [Member] | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Pension plan assets at fair value | 2,120,127 | 2,343,471 | |
Cash equivalents and other short-term investments [Member] | Fair Value, Measurements, Recurring [Member] | Pension Plan [Member] | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Pension plan assets at fair value | 271,612 | 255,515 | |
U.S. equities | Fair Value, Measurements, Recurring [Member] | Pension Plan [Member] | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Pension plan assets at fair value | 1,115,323 | 1,242,139 | |
International equities | Fair Value, Measurements, Recurring [Member] | Pension Plan [Member] | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Pension plan assets at fair value | 131,912 | 138,640 | |
U.S. stock index fund [Member] | Fair Value, Measurements, Recurring [Member] | Pension Plan [Member] | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Pension plan assets at fair value | 601,395 | 706,202 | |
Total investments [Member] | Fair Value, Measurements, Recurring [Member] | Pension Plan [Member] | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Pension plan assets at fair value | 2,120,242 | 2,342,496 | |
Receivables (Payables) for settlement of investments purchased, net [Member] | Fair Value, Measurements, Recurring [Member] | Pension Plan [Member] | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Pension plan assets at fair value | (115) | 975 | |
Level 1 [Member] | Cash equivalents and other short-term investments [Member] | Fair Value, Measurements, Recurring [Member] | Pension Plan [Member] | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Pension plan assets at fair value | 2,068 | 73,877 | |
Level 1 [Member] | U.S. equities | Fair Value, Measurements, Recurring [Member] | Pension Plan [Member] | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Pension plan assets at fair value | 1,115,323 | 1,242,139 | |
Level 1 [Member] | International equities | Fair Value, Measurements, Recurring [Member] | Pension Plan [Member] | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Pension plan assets at fair value | 131,912 | 138,640 | |
Level 1 [Member] | U.S. stock index fund [Member] | Fair Value, Measurements, Recurring [Member] | Pension Plan [Member] | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Pension plan assets at fair value | 0 | 0 | |
Level 1 [Member] | Total investments [Member] | Fair Value, Measurements, Recurring [Member] | Pension Plan [Member] | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Pension plan assets at fair value | 1,249,303 | 1,454,656 | |
Level 2 [Member] | Cash equivalents and other short-term investments [Member] | Fair Value, Measurements, Recurring [Member] | Pension Plan [Member] | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Pension plan assets at fair value | 269,544 | 181,638 | |
Level 2 [Member] | U.S. equities | Fair Value, Measurements, Recurring [Member] | Pension Plan [Member] | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Pension plan assets at fair value | 0 | 0 | |
Level 2 [Member] | International equities | Fair Value, Measurements, Recurring [Member] | Pension Plan [Member] | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Pension plan assets at fair value | 0 | 0 | |
Level 2 [Member] | U.S. stock index fund [Member] | Fair Value, Measurements, Recurring [Member] | Pension Plan [Member] | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Pension plan assets at fair value | 0 | 0 | |
Level 2 [Member] | Total investments [Member] | Fair Value, Measurements, Recurring [Member] | Pension Plan [Member] | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Pension plan assets at fair value | 269,544 | 181,638 | |
Level 3 [Member] | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Pension plan assets at fair value | 601,395 | 706,202 | $ 622,865 |
Level 3 [Member] | Cash equivalents and other short-term investments [Member] | Fair Value, Measurements, Recurring [Member] | Pension Plan [Member] | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Pension plan assets at fair value | 0 | 0 | |
Level 3 [Member] | U.S. equities | Fair Value, Measurements, Recurring [Member] | Pension Plan [Member] | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Pension plan assets at fair value | 0 | 0 | |
Level 3 [Member] | International equities | Fair Value, Measurements, Recurring [Member] | Pension Plan [Member] | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Pension plan assets at fair value | 0 | 0 | |
Level 3 [Member] | U.S. stock index fund [Member] | Fair Value, Measurements, Recurring [Member] | Pension Plan [Member] | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Pension plan assets at fair value | 601,395 | 706,202 | |
Level 3 [Member] | Total investments [Member] | Fair Value, Measurements, Recurring [Member] | Pension Plan [Member] | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Pension plan assets at fair value | $ 601,395 | $ 706,202 |
Pension and Postretirement P_13
Pension and Postretirement Plans (Reconciliation of Change in Pension Plan Assets Fair Value Using Level 3 Inputs) (Details 10) - Level 3 [Member] - USD ($) $ in Thousands | 12 Months Ended | |
Dec. 31, 2018 | Dec. 31, 2017 | |
Defined Benefit Plan, Change in Fair Value of Plan Assets, Level 3 Reconciliation [Roll Forward] | ||
Fair value of assets at beginning of year | $ 706,202 | $ 622,865 |
Purchases, sales and settlements, net | (80,000) | (50,000) |
Gains relating to assets sold | 2,819 | 6,796 |
(Losses) gains relating to assets still held at year-end | (27,626) | 126,541 |
Fair value of assets at end of year | $ 601,395 | $ 706,202 |
Other Non-Operating Income (E_3
Other Non-Operating Income (Expense) (Narrative) (Details) $ in Thousands | 1 Months Ended | 3 Months Ended | 6 Months Ended | 9 Months Ended | 12 Months Ended | ||||||||
Jun. 30, 2016USD ($) | Dec. 31, 2018USD ($) | Sep. 30, 2018USD ($) | Mar. 31, 2018USD ($) | Dec. 31, 2017USD ($) | Sep. 30, 2016USD ($) | Jun. 30, 2016USD ($) | Mar. 31, 2016USD ($) | Dec. 31, 2018USD ($) | Sep. 30, 2018USD ($) | Dec. 31, 2018USD ($)business | Dec. 31, 2017USD ($) | Dec. 31, 2016USD ($) | |
Schedule of Non-Operating (Expense) Income [Line Items] | |||||||||||||
Loss on Guarantor Lease Obligations | $ 17,518 | $ 0 | $ 0 | ||||||||||
Gains on cost method investments | $ 3,200 | $ 8,500 | 11,663 | 0 | 0 | ||||||||
Net gain (loss) on sales of businesses | 8,157 | (569) | 18,931 | ||||||||||
Impairment of cost method investment | 200 | 29,365 | |||||||||||
Net gain on sale of property, plant and equipment | $ 34,100 | 2,539 | 0 | 34,072 | |||||||||
Gain on formation of a joint venture | 0 | $ 0 | 3,232 | ||||||||||
Sale Of KHE Campuses Business [Member] | |||||||||||||
Schedule of Non-Operating (Expense) Income [Line Items] | |||||||||||||
Loss on Guarantor Lease Obligations | $ 17,500 | 17,500 | |||||||||||
Education [Member] | |||||||||||||
Schedule of Non-Operating (Expense) Income [Line Items] | |||||||||||||
Net gain (loss) on sales of businesses | $ 8,200 | ||||||||||||
Number Of Businesses Disposed | business | 3 | ||||||||||||
Residential Healthcare Group Inc [Member] | Residential And Michigan Hospital Joint Venture [Member] | |||||||||||||
Schedule of Non-Operating (Expense) Income [Line Items] | |||||||||||||
Ownership percentage of investment in affiliate | 40.00% | 40.00% | |||||||||||
Gain on formation of a joint venture | $ 3,200 | ||||||||||||
Vocational School Company [Member] | |||||||||||||
Schedule of Non-Operating (Expense) Income [Line Items] | |||||||||||||
Impairment of cost method investment | $ 12,000 | $ 15,000 | $ 27,000 | ||||||||||
Higher Education [Member] | Education [Member] | Kaplan University Transaction [Member] | |||||||||||||
Schedule of Non-Operating (Expense) Income [Line Items] | |||||||||||||
Net gain (loss) on sales of businesses | $ 4,300 | $ 4,300 | |||||||||||
Gain Related to Contingent Consideration | $ 1,900 | $ 1,900 | |||||||||||
Kaplan Corporate and Other [Member] | Colloquy [Member] | Education [Member] | |||||||||||||
Schedule of Non-Operating (Expense) Income [Line Items] | |||||||||||||
Net gain (loss) on sales of businesses | $ 18,900 |
Other Non-Operating Income (E_4
Other Non-Operating Income (Expense) (Details 1) - USD ($) $ in Thousands | 3 Months Ended | 12 Months Ended | ||||||||||
Dec. 31, 2018 | Sep. 30, 2018 | Jun. 30, 2018 | Mar. 31, 2018 | Dec. 31, 2017 | Sep. 30, 2017 | Jun. 30, 2017 | Mar. 31, 2017 | Jun. 30, 2016 | Dec. 31, 2018 | Dec. 31, 2017 | Dec. 31, 2016 | |
Other Nonoperating Income (Expense) [Abstract] | ||||||||||||
Loss on guarantor obligations | $ (17,518) | $ 0 | $ 0 | |||||||||
Net gain on cost method investments | $ 3,200 | $ 8,500 | 11,663 | 0 | 0 | |||||||
Net gain (loss) on sales of businesses | 8,157 | (569) | 18,931 | |||||||||
Foreign currency (loss) gain, net | (3,844) | 3,310 | (39,890) | |||||||||
Gain on sale of cost method investments | 2,845 | 16 | 794 | |||||||||
Impairment of cost method investments | (2,697) | |||||||||||
Impairment of cost method investment | (200) | (29,365) | ||||||||||
Net gain on sale of property, plant and equipment | $ 34,100 | 2,539 | 0 | 34,072 | ||||||||
Gain on formation of a joint venture | 0 | 0 | 3,232 | |||||||||
Net losses on sales or write-down of marketable equity securities | 0 | 0 | (1,791) | |||||||||
Other, net | 958 | 1,684 | 1,375 | |||||||||
Other income (expense), net | $ (12,559) | $ 3,142 | $ 2,333 | $ 9,187 | $ (2,640) | $ 1,963 | $ 4,069 | $ 849 | $ 2,103 | $ 4,241 | $ (12,642) |
Accumulated Other Comprehensi_3
Accumulated Other Comprehensive Income (Loss) (Components of OCI) (Details 1) - USD ($) $ in Thousands | 12 Months Ended | |||
Dec. 31, 2018 | Dec. 31, 2017 | Dec. 31, 2016 | ||
Other Comprehensive Income (Loss) [Line Items] | ||||
Other Comprehensive Income (Loss), Before Tax | $ (174,347) | $ 319,059 | $ (115,429) | |
Other Comprehensive Income (Loss), Income Tax | 37,510 | (90,923) | 37,235 | |
Other Comprehensive Income (Loss), Net of Tax | (136,837) | 228,136 | (78,194) | |
Foreign Currency Translation Adjustment [Member] | ||||
Other Comprehensive Income (Loss) [Line Items] | ||||
Other Comprehensive Income (Loss), before Reclassifications, before Tax | 33,175 | |||
Other Comprehensive Income (Loss) before Reclassifications, Tax | 0 | |||
Other Comprehensive Income (Loss), before Reclassifications, Net of Tax | (35,584) | 33,175 | ||
Reclassification from Accumulated Other Comprehensive Income, Current Period, before Tax | 137 | |||
Reclassification from AOCI, Current Period, Tax | 0 | |||
Reclassification from Accumulated Other Comprehensive Income, Current Period, Net of Tax | 0 | 137 | ||
Other Comprehensive Income (Loss), Before Tax | (35,584) | 33,312 | (22,149) | |
Other Comprehensive Income (Loss), Income Tax | 0 | 0 | 0 | |
Other Comprehensive Income (Loss), Net of Tax | (35,584) | 33,312 | (22,149) | |
Unrealized Gains (Losses) on Available- for- Sale Securities [Member] | ||||
Other Comprehensive Income (Loss) [Line Items] | ||||
Other Comprehensive Income (Loss), before Reclassifications, before Tax | 55,507 | |||
Other Comprehensive Income (Loss) before Reclassifications, Tax | (22,203) | |||
Other Comprehensive Income (Loss), before Reclassifications, Net of Tax | 0 | 67,252 | 33,304 | |
Reclassification from Accumulated Other Comprehensive Income, Current Period, before Tax | 1,879 | |||
Reclassification from AOCI, Current Period, Tax | (752) | |||
Reclassification from Accumulated Other Comprehensive Income, Current Period, Net of Tax | 0 | 0 | 1,127 | |
Other Comprehensive Income (Loss), Before Tax | 112,086 | 57,386 | ||
Other Comprehensive Income (Loss), Income Tax | (44,834) | (22,955) | ||
Other Comprehensive Income (Loss), Net of Tax | 0 | 67,252 | 34,431 | |
Pension and Other Postretirement Plans [Member] | ||||
Other Comprehensive Income (Loss) [Line Items] | ||||
Other Comprehensive Income (Loss), before Reclassifications, Net of Tax | (70,629) | 131,108 | ||
Reclassification from Accumulated Other Comprehensive Income, Current Period, before Tax | (42,563) | (6,050) | (16,417) | |
Reclassification from AOCI, Current Period, Tax | 11,492 | 2,421 | 6,567 | |
Reclassification from Accumulated Other Comprehensive Income, Current Period, Net of Tax | (31,071) | (3,629) | (9,850) | |
Other Comprehensive Income (Loss), Before Tax | (139,314) | 173,549 | (150,332) | |
Other Comprehensive Income (Loss), Income Tax | 37,614 | (46,070) | 60,133 | |
Other Comprehensive Income (Loss), Net of Tax | (101,700) | 127,479 | (90,199) | |
Net Actuarial Loss [Member] | ||||
Other Comprehensive Income (Loss) [Line Items] | ||||
Other Comprehensive Income (Loss), before Reclassifications, before Tax | (101,013) | 179,674 | (133,915) | |
Other Comprehensive Income (Loss) before Reclassifications, Tax | 27,273 | (48,511) | 53,566 | |
Other Comprehensive Income (Loss), before Reclassifications, Net of Tax | (73,740) | 131,163 | (80,349) | |
Reclassification from Accumulated Other Comprehensive Income, Current Period, before Tax | [1] | (11,349) | (6,527) | 1,157 |
Reclassification from AOCI, Current Period, Tax | 3,064 | 2,612 | (463) | |
Reclassification from Accumulated Other Comprehensive Income, Current Period, Net of Tax | (8,285) | (3,915) | 694 | |
Net Prior Service Cost [Member] | ||||
Other Comprehensive Income (Loss) [Line Items] | ||||
Other Comprehensive Income (Loss), before Reclassifications, before Tax | 4,262 | (75) | ||
Other Comprehensive Income (Loss) before Reclassifications, Tax | (1,151) | 20 | ||
Other Comprehensive Income (Loss), before Reclassifications, Net of Tax | 3,111 | (55) | ||
Reclassification from Accumulated Other Comprehensive Income, Current Period, before Tax | [1] | (947) | 477 | 419 |
Reclassification from AOCI, Current Period, Tax | 256 | (191) | (167) | |
Reclassification from Accumulated Other Comprehensive Income, Current Period, Net of Tax | (691) | 286 | 252 | |
Curtailments and settlements Included in Net Income [Member] | ||||
Other Comprehensive Income (Loss) [Line Items] | ||||
Reclassification from Accumulated Other Comprehensive Income, Current Period, before Tax | [1] | (30,267) | 0 | (17,993) |
Reclassification from AOCI, Current Period, Tax | 8,172 | 7,197 | ||
Reclassification from Accumulated Other Comprehensive Income, Current Period, Net of Tax | (22,095) | (10,796) | ||
Cash Flow Hedge | ||||
Other Comprehensive Income (Loss) [Line Items] | ||||
Other Comprehensive Income (Loss), before Reclassifications, Net of Tax | 579 | (29) | ||
Reclassification from Accumulated Other Comprehensive Income, Current Period, Net of Tax | (132) | 122 | ||
Other Comprehensive Income (Loss), Before Tax | 551 | 112 | (334) | |
Other Comprehensive Income (Loss), Income Tax | (104) | (19) | 57 | |
Other Comprehensive Income (Loss), Net of Tax | $ 447 | $ 93 | $ (277) | |
[1] | These accumulated other comprehensive income components are included in the computation of net periodic pension and postretirement plan cost (see Note 14) and are included in non-operating pension and postretirement benefit income in the Company’s Consolidated Statements of Operations. |
Accumulated Other Comprehensi_4
Accumulated Other Comprehensive Income (Loss) (AOCI balances) (Details 2) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2018 | Dec. 31, 2017 | Dec. 31, 2016 | |
AOCI Including Portion Attributable to Noncontrolling Interest, Net of Tax [Roll Forward] | |||
As of | $ 2,915,145 | $ 2,452,941 | $ 2,490,698 |
Other Comprehensive (Loss) Income, Net of Tax | (136,837) | 228,136 | (78,194) |
Reclassification of stranded tax effects to retained earnings as a result of tax reform | 0 | ||
As of | 2,916,782 | 2,915,145 | 2,452,941 |
AOCI Including Portion Attributable to Noncontrolling Interest [Member] | |||
AOCI Including Portion Attributable to Noncontrolling Interest, Net of Tax [Roll Forward] | |||
As of | 535,555 | 236,486 | |
Reclassification from accumulated other comprehensive income to retained earnings as a result of adoption of new guidance | (194,889) | ||
Other comprehensive (loss) income before reclassifications | (105,634) | 231,506 | |
Net amount reclassified from accumulated other comprehensive income | (31,203) | (3,370) | |
Other Comprehensive (Loss) Income, Net of Tax | (136,837) | 228,136 | |
Reclassification of stranded tax effects to retained earnings as a result of tax reform | 70,933 | ||
As of | 203,829 | 535,555 | 236,486 |
Foreign Currency Translation Adjustments [Member] | |||
AOCI Including Portion Attributable to Noncontrolling Interest, Net of Tax [Roll Forward] | |||
As of | 6,314 | (26,998) | |
Reclassification from accumulated other comprehensive income to retained earnings as a result of adoption of new guidance | 0 | ||
Other comprehensive (loss) income before reclassifications | (35,584) | 33,175 | |
Net amount reclassified from accumulated other comprehensive income | 0 | 137 | |
Other Comprehensive (Loss) Income, Net of Tax | (35,584) | 33,312 | (22,149) |
Reclassification of stranded tax effects to retained earnings as a result of tax reform | 0 | ||
As of | (29,270) | 6,314 | (26,998) |
Unrealized Gains (Losses) on Available- for- Sale Securities [Member] | |||
AOCI Including Portion Attributable to Noncontrolling Interest, Net of Tax [Roll Forward] | |||
As of | 194,889 | 92,931 | |
Reclassification from accumulated other comprehensive income to retained earnings as a result of adoption of new guidance | (194,889) | ||
Other comprehensive (loss) income before reclassifications | 0 | 67,252 | 33,304 |
Net amount reclassified from accumulated other comprehensive income | 0 | 0 | 1,127 |
Other Comprehensive (Loss) Income, Net of Tax | 0 | 67,252 | 34,431 |
Reclassification of stranded tax effects to retained earnings as a result of tax reform | 34,706 | ||
As of | 0 | 194,889 | 92,931 |
Unrealized Gain (Loss) on Pensions and Other Postretirement Plans [Member] | |||
AOCI Including Portion Attributable to Noncontrolling Interest, Net of Tax [Roll Forward] | |||
As of | 334,536 | 170,830 | |
Reclassification from accumulated other comprehensive income to retained earnings as a result of adoption of new guidance | 0 | ||
Other comprehensive (loss) income before reclassifications | (70,629) | 131,108 | |
Net amount reclassified from accumulated other comprehensive income | (31,071) | (3,629) | (9,850) |
Other Comprehensive (Loss) Income, Net of Tax | (101,700) | 127,479 | (90,199) |
Reclassification of stranded tax effects to retained earnings as a result of tax reform | 36,227 | ||
As of | 232,836 | 334,536 | 170,830 |
Cash Flow Hedge | |||
AOCI Including Portion Attributable to Noncontrolling Interest, Net of Tax [Roll Forward] | |||
As of | (184) | (277) | |
Reclassification from accumulated other comprehensive income to retained earnings as a result of adoption of new guidance | 0 | ||
Other comprehensive (loss) income before reclassifications | 579 | (29) | |
Net amount reclassified from accumulated other comprehensive income | (132) | 122 | |
Other Comprehensive (Loss) Income, Net of Tax | 447 | 93 | (277) |
Reclassification of stranded tax effects to retained earnings as a result of tax reform | 0 | ||
As of | $ 263 | $ (184) | $ (277) |
Accumulated Other Comprehensi_5
Accumulated Other Comprehensive Income (Loss) (Reclassifications out of AOCI) (Details 3) - USD ($) $ in Thousands | 3 Months Ended | 12 Months Ended | ||||||||||
Dec. 31, 2018 | Sep. 30, 2018 | Jun. 30, 2018 | Mar. 31, 2018 | Dec. 31, 2017 | Sep. 30, 2017 | Jun. 30, 2017 | Mar. 31, 2017 | Dec. 31, 2018 | Dec. 31, 2017 | Dec. 31, 2016 | ||
Reclassification Adjustment Out Of Accumulated Other Comprehensive Income [Line Items] | ||||||||||||
Other (expense) income, net | $ 12,559 | $ (3,142) | $ (2,333) | $ (9,187) | $ 2,640 | $ (1,963) | $ (4,069) | $ (849) | $ (2,103) | $ (4,241) | $ 12,642 | |
Interest expense | 6,531 | 6,135 | 17,165 | 8,071 | 8,103 | 8,619 | 9,035 | 8,129 | 37,902 | 33,886 | 35,390 | |
Provision for (Benefit from) Income Taxes | 12,400 | 10,000 | 16,100 | 13,600 | (159,700) | 13,400 | 23,900 | 2,700 | 52,100 | (119,700) | 81,200 | |
Net of Tax | $ (56,738) | $ (125,070) | $ (46,635) | $ (42,965) | $ (214,560) | $ (24,844) | $ (41,999) | $ (21,086) | (271,408) | (302,489) | (169,458) | |
Reclassification out of Accumulated Other Comprehensive Income [Member] | ||||||||||||
Reclassification Adjustment Out Of Accumulated Other Comprehensive Income [Line Items] | ||||||||||||
Net of Tax | (31,203) | (3,370) | (8,710) | |||||||||
Foreign Currency Translation Adjustments [Member] | ||||||||||||
Reclassification Adjustment Out Of Accumulated Other Comprehensive Income [Line Items] | ||||||||||||
Reclassifications, before tax | 137 | |||||||||||
Provision for income taxes | 0 | |||||||||||
Reclassifications, net of tax | 0 | 137 | ||||||||||
Foreign Currency Translation Adjustments [Member] | Reclassification out of Accumulated Other Comprehensive Income [Member] | ||||||||||||
Reclassification Adjustment Out Of Accumulated Other Comprehensive Income [Line Items] | ||||||||||||
Other (expense) income, net | 0 | 137 | 0 | |||||||||
Unrealized Gains (Losses) on Available- for- Sale Securities [Member] | ||||||||||||
Reclassification Adjustment Out Of Accumulated Other Comprehensive Income [Line Items] | ||||||||||||
Reclassifications, before tax | 1,879 | |||||||||||
Provision for income taxes | (752) | |||||||||||
Reclassifications, net of tax | 0 | 0 | 1,127 | |||||||||
Unrealized Gains (Losses) 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 | 1,879 | |||||||||
Provision for (Benefit from) Income Taxes | 0 | 0 | (752) | |||||||||
Net of Tax | 0 | 0 | 1,127 | |||||||||
Pension and Other Postretirement Plans [Member] | ||||||||||||
Reclassification Adjustment Out Of Accumulated Other Comprehensive Income [Line Items] | ||||||||||||
Reclassifications, before tax | (42,563) | (6,050) | (16,417) | |||||||||
Provision for income taxes | 11,492 | 2,421 | 6,567 | |||||||||
Reclassifications, net of tax | (31,071) | (3,629) | (9,850) | |||||||||
Net Actuarial Loss [Member] | ||||||||||||
Reclassification Adjustment Out Of Accumulated Other Comprehensive Income [Line Items] | ||||||||||||
Reclassifications, before tax | [1] | (11,349) | (6,527) | 1,157 | ||||||||
Provision for income taxes | 3,064 | 2,612 | (463) | |||||||||
Reclassifications, net of tax | (8,285) | (3,915) | 694 | |||||||||
Net Prior Service Cost [Member] | ||||||||||||
Reclassification Adjustment Out Of Accumulated Other Comprehensive Income [Line Items] | ||||||||||||
Reclassifications, before tax | [1] | (947) | 477 | 419 | ||||||||
Provision for income taxes | 256 | (191) | (167) | |||||||||
Reclassifications, net of tax | (691) | 286 | 252 | |||||||||
Curtailment (Gains) Losses Included in Net Income [Member] | ||||||||||||
Reclassification Adjustment Out Of Accumulated Other Comprehensive Income [Line Items] | ||||||||||||
Reclassifications, before tax | [1] | (30,267) | 0 | (17,993) | ||||||||
Provision for income taxes | 8,172 | 7,197 | ||||||||||
Reclassifications, net of tax | (22,095) | (10,796) | ||||||||||
Cash Flow Hedge | ||||||||||||
Reclassification Adjustment Out Of Accumulated Other Comprehensive Income [Line Items] | ||||||||||||
Reclassifications, net of tax | (132) | 122 | ||||||||||
Cash Flow Hedge | Reclassification out of Accumulated Other Comprehensive Income [Member] | ||||||||||||
Reclassification Adjustment Out Of Accumulated Other Comprehensive Income [Line Items] | ||||||||||||
Interest expense | (163) | 152 | 16 | |||||||||
Provision for (Benefit from) Income Taxes | 31 | (30) | (3) | |||||||||
Net of Tax | $ (132) | $ 122 | $ 13 | |||||||||
[1] | These accumulated other comprehensive income components are included in the computation of net periodic pension and postretirement plan cost (see Note 14) and are included in non-operating pension and postretirement benefit income in the Company’s Consolidated Statements of Operations. |
Leases and Other Commitments (N
Leases and Other Commitments (Narrative) (Details) - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2018 | Dec. 31, 2017 | Dec. 31, 2016 | |
Operating Leased Assets [Line Items] | |||
Future minimum sublease payments due | $ 66 | ||
Rent expense for operating leases | 83.4 | $ 81.1 | $ 86.9 |
Sublease rental income | 15.6 | $ 14.8 | $ 14.3 |
Television Broadcasting [Member] | |||
Operating Leased Assets [Line Items] | |||
Long-term programming purchase commitment | $ 16.1 |
Leases and Other Commitments (D
Leases and Other Commitments (Details 1) $ in Thousands | Dec. 31, 2018USD ($) |
Leases And Other Commitments [Abstract] | |
Future minimum lease payments for 2019 | $ 101,009 |
Future minimum lease payments for 2020 | 84,945 |
Future minimum lease payments for 2021 | 72,031 |
Future minimum lease payments for 2022 | 53,709 |
Future minimum lease payments for 2023 | 47,091 |
Future minimum lease payments after 2023 | 115,948 |
Operating leases, future minimum payments due, total | $ 474,733 |
Contingencies (Details)
Contingencies (Details) £ in Millions | Mar. 11, 2015claim | Aug. 17, 2011Complaintclaim | Aug. 31, 2017USD ($)conditions | Dec. 31, 2018USD ($)claimprogram_review | Dec. 31, 2018USD ($)claimprogram_review | Dec. 31, 2017USD ($) | Dec. 31, 2016USD ($) | Dec. 31, 2018GBP (£)claimprogram_review |
Loss Contingencies [Line Items] | ||||||||
Number of existing legal claims or proceedings that are likely to have a material effect on the Company's business | claim | 0 | 0 | 0 | |||||
Loss on Guarantor Lease Obligations | $ 17,518,000 | $ 0 | $ 0 | |||||
Deferred Charges and Other Assets | $ 117,830,000 | 117,830,000 | $ 102,046,000 | |||||
Celtic Healthcare Allegheny Health Network Joint Venture [Member] | ||||||||
Loss Contingencies [Line Items] | ||||||||
Number of conditions out of compliance | conditions | 4 | |||||||
Number of days of noncompliance | 31 days | |||||||
Maximum [Member] | ||||||||
Loss Contingencies [Line Items] | ||||||||
Loss contingency, estimate of possible loss | 45,000,000 | 45,000,000 | ||||||
Maximum [Member] | Celtic Healthcare Allegheny Health Network Joint Venture [Member] | ||||||||
Loss Contingencies [Line Items] | ||||||||
Amount of penalties per day or per instance of noncompliance | $ 10,000 | |||||||
Education [Member] | Diaz Case [Member] | ||||||||
Loss Contingencies [Line Items] | ||||||||
The number of separate complaints included in the Diaz case that received rulings | Complaint | 3 | |||||||
Remaining employment claim in the Diaz complaint | claim | 1 | |||||||
Education [Member] | Diaz Claims [Member] | ||||||||
Loss Contingencies [Line Items] | ||||||||
Number of claims affirmed for dismissal by US Court of Appeals | claim | 3 | |||||||
Number of claims appealed | claim | 4 | |||||||
Sale Of KHE Campuses Business [Member] | ||||||||
Loss Contingencies [Line Items] | ||||||||
Loss on Guarantor Lease Obligations | $ 17,500,000 | $ 17,500,000 | ||||||
Higher Education [Member] | Sale Of KHE Campuses Business [Member] | Education [Member] | ||||||||
Loss Contingencies [Line Items] | ||||||||
Number of pending ED program reviews | program_review | 2 | 2 | 2 | |||||
Kaplan International [Member] | UK Pathways [Member] | Her Majesty's Revenue and Customs (HMRC) [Member] | ||||||||
Loss Contingencies [Line Items] | ||||||||
Loss contingency, estimate of possible loss | £ | £ 15.4 | |||||||
Deferred Charges and Other Assets | £ | £ 15.4 |
Business Segments (Narrative) (
Business Segments (Narrative) (Details) $ in Thousands | 3 Months Ended | 12 Months Ended | |||||||||
Dec. 31, 2018USD ($)TelevisionStation | Sep. 30, 2018USD ($) | Jun. 30, 2018USD ($) | Mar. 31, 2018USD ($) | Dec. 31, 2017USD ($) | Sep. 30, 2017USD ($) | Jun. 30, 2017USD ($) | Mar. 31, 2017USD ($) | Dec. 31, 2018USD ($)TelevisionStationSegment | Dec. 31, 2017USD ($) | Dec. 31, 2016USD ($) | |
Segment Reporting Information [Line Items] | |||||||||||
Number of reportable segments | Segment | 6 | ||||||||||
Operating Revenues | $ 689,087 | $ 674,766 | $ 672,677 | $ 659,436 | $ 675,817 | $ 657,225 | $ 676,087 | $ 582,717 | $ 2,695,966 | $ 2,591,846 | $ 2,481,890 |
Television Broadcasting [Member] | |||||||||||
Segment Reporting Information [Line Items] | |||||||||||
Number of television broadcast stations owned | TelevisionStation | 7 | 7 | |||||||||
Education [Member] | |||||||||||
Segment Reporting Information [Line Items] | |||||||||||
Restructuring costs | 9,065 | 11,852 | |||||||||
Accrued restructuring costs | $ 4,600 | 8,500 | $ 4,600 | 8,500 | |||||||
Non U.S. [Member] | |||||||||||
Segment Reporting Information [Line Items] | |||||||||||
Operating Revenues | 657,000 | 637,000 | 624,000 | ||||||||
Foreign assets | $ 124,000 | $ 89,000 | 124,000 | 89,000 | |||||||
UNITED KINGDOM | Education [Member] | |||||||||||
Segment Reporting Information [Line Items] | |||||||||||
Operating Revenues | $ 345,000 | 320,000 | 312,000 | ||||||||
Higher Education [Member] | Education [Member] | |||||||||||
Segment Reporting Information [Line Items] | |||||||||||
Restructuring costs | 1,400 | 7,100 | |||||||||
Test Preparation [Member] | Education [Member] | |||||||||||
Segment Reporting Information [Line Items] | |||||||||||
Restructuring costs | 4,300 | ||||||||||
Kaplan International [Member] | Education [Member] | |||||||||||
Segment Reporting Information [Line Items] | |||||||||||
Restructuring costs | $ 2,900 | $ 4,700 |
Business Segments (Restructurin
Business Segments (Restructuring Costs) (Details 1) - Education [Member] - USD ($) $ in Thousands | 12 Months Ended | |
Dec. 31, 2017 | Dec. 31, 2016 | |
Restructuring Cost and Reserve [Line Items] | ||
Accelerated depreciation | $ 339 | $ 1,815 |
Lease obligation losses | 0 | 2,694 |
Severance | 6,099 | 5,902 |
Other | 2,627 | 1,441 |
Total restructuring costs | $ 9,065 | $ 11,852 |
Business Segments (Information
Business Segments (Information by Operating Segment) (Details 2) - USD ($) $ in Thousands | 3 Months Ended | 12 Months Ended | |||||||||
Dec. 31, 2018 | Sep. 30, 2018 | Jun. 30, 2018 | Mar. 31, 2018 | Dec. 31, 2017 | Sep. 30, 2017 | Jun. 30, 2017 | Mar. 31, 2017 | Dec. 31, 2018 | Dec. 31, 2017 | Dec. 31, 2016 | |
Segment Reporting Information [Line Items] | |||||||||||
Operating Revenues | $ 689,087 | $ 674,766 | $ 672,677 | $ 659,436 | $ 675,817 | $ 657,225 | $ 676,087 | $ 582,717 | $ 2,695,966 | $ 2,591,846 | $ 2,481,890 |
Income (loss) from operations | 75,582 | 60,739 | 65,626 | 44,214 | 49,459 | 26,950 | 49,741 | 10,253 | 246,161 | 136,403 | 222,869 |
Equity in earnings (losses) of affiliates, net | 1,426 | 9,537 | 931 | 2,579 | (4,697) | (532) | 1,331 | 649 | 14,473 | (3,249) | (7,937) |
Interest expense, net | (32,549) | (27,305) | (32,297) | ||||||||
Debt extinguishment costs | 0 | 0 | (11,378) | 0 | (11,378) | 0 | 0 | ||||
Non-operating pension and postretirement benefit income, net | 53,900 | 22,214 | 23,041 | 21,386 | 17,657 | 17,621 | 18,620 | 18,801 | 120,541 | 72,699 | 80,665 |
Loss on marketable equity securities, net | (44,149) | 44,962 | (2,554) | (14,102) | (15,843) | 0 | 0 | ||||
Other income (expense), net | (12,559) | 3,142 | 2,333 | 9,187 | (2,640) | 1,963 | 4,069 | 849 | 2,103 | 4,241 | (12,642) |
Income Before Income Taxes | 69,138 | 135,070 | 62,735 | 56,565 | 54,860 | 38,244 | 65,899 | 23,786 | 323,508 | 182,789 | 250,658 |
Depreciation of property, plant and equipment | 14,813 | 13,648 | 13,619 | 14,642 | 15,984 | 16,002 | 15,871 | 14,652 | 56,722 | 62,509 | 64,620 |
Amortization of intangible assets | 13,362 | $ 12,269 | $ 11,399 | $ 10,384 | 12,897 | $ 10,923 | $ 10,531 | $ 6,836 | 47,414 | 41,187 | 26,671 |
Amortization of intangible assets and impairment of goodwill and other long-lived assets | 55,523 | 50,801 | 28,274 | ||||||||
Pension service cost | 18,221 | 18,687 | 20,461 | ||||||||
Capital Expenditures | 98,067 | 57,080 | 70,712 | ||||||||
Identifiable Assets | 3,120,280 | 3,216,141 | 3,120,280 | 3,216,141 | |||||||
Marketable equity securities | 496,390 | 496,390 | |||||||||
Marketable equity securities | 536,315 | 536,315 | |||||||||
Investments in Affiliates | 143,813 | 128,590 | 143,813 | 128,590 | |||||||
Prepaid Pension Cost | 1,003,558 | 1,056,777 | 1,003,558 | 1,056,777 | |||||||
Total Assets | 4,764,041 | 4,937,823 | 4,764,041 | 4,937,823 | |||||||
Operating Segments [Member] | Education [Member] | |||||||||||
Segment Reporting Information [Line Items] | |||||||||||
Operating Revenues | 1,451,015 | 1,516,776 | 1,598,461 | ||||||||
Income (loss) from operations | 97,136 | 77,687 | 95,321 | ||||||||
Depreciation of property, plant and equipment | 28,099 | 32,906 | 41,187 | ||||||||
Amortization of intangible assets | 9,362 | 5,162 | 7,516 | ||||||||
Amortization of intangible assets and impairment of goodwill and other long-lived assets | 9,362 | 5,162 | 7,516 | ||||||||
Pension service cost | 8,753 | 9,720 | 11,803 | ||||||||
Capital Expenditures | 54,159 | 27,520 | 26,497 | ||||||||
Identifiable Assets | 1,568,747 | 1,592,097 | 1,568,747 | 1,592,097 | |||||||
Operating Segments [Member] | Education [Member] | Reportable Subsegments [Member] | Kaplan International [Member] | |||||||||||
Segment Reporting Information [Line Items] | |||||||||||
Operating Revenues | 719,982 | 697,999 | 696,362 | ||||||||
Income (loss) from operations | 70,315 | 51,623 | 48,398 | ||||||||
Depreciation of property, plant and equipment | 15,755 | 14,892 | 17,523 | ||||||||
Pension service cost | 298 | 264 | 268 | ||||||||
Capital Expenditures | 44,469 | 21,667 | 16,252 | ||||||||
Identifiable Assets | 1,101,040 | 1,115,919 | 1,101,040 | 1,115,919 | |||||||
Operating Segments [Member] | Education [Member] | Reportable Subsegments [Member] | Higher Education [Member] | |||||||||||
Segment Reporting Information [Line Items] | |||||||||||
Operating Revenues | 342,085 | 431,425 | 501,784 | ||||||||
Income (loss) from operations | 15,217 | 16,719 | 39,196 | ||||||||
Depreciation of property, plant and equipment | 4,826 | 9,117 | 13,816 | ||||||||
Pension service cost | 4,310 | 5,269 | 6,544 | ||||||||
Capital Expenditures | 4,045 | 2,158 | 3,140 | ||||||||
Identifiable Assets | 126,752 | 231,986 | 126,752 | 231,986 | |||||||
Operating Segments [Member] | Education [Member] | Reportable Subsegments [Member] | Test Preparation [Member] | |||||||||||
Segment Reporting Information [Line Items] | |||||||||||
Operating Revenues | 256,102 | 273,298 | 286,556 | ||||||||
Income (loss) from operations | 19,096 | 11,507 | 9,599 | ||||||||
Depreciation of property, plant and equipment | 3,941 | 5,286 | 6,287 | ||||||||
Pension service cost | 2,611 | 2,755 | 3,072 | ||||||||
Capital Expenditures | 681 | 1,038 | 4,672 | ||||||||
Identifiable Assets | 145,308 | 130,938 | 145,308 | 130,938 | |||||||
Operating Segments [Member] | Education [Member] | Reportable Subsegments [Member] | Professional (U.S.) [Member] | |||||||||||
Segment Reporting Information [Line Items] | |||||||||||
Operating Revenues | 134,187 | 115,839 | 115,263 | ||||||||
Income (loss) from operations | 28,608 | 27,558 | 27,436 | ||||||||
Depreciation of property, plant and equipment | 3,096 | 3,041 | 3,006 | ||||||||
Pension service cost | 1,162 | 913 | 1,076 | ||||||||
Capital Expenditures | 4,845 | 2,475 | 2,224 | ||||||||
Identifiable Assets | 166,916 | 91,630 | 166,916 | 91,630 | |||||||
Operating Segments [Member] | Education [Member] | Kaplan Corporate and Other [Member] | |||||||||||
Segment Reporting Information [Line Items] | |||||||||||
Operating Revenues | 1,142 | 294 | 214 | ||||||||
Income (loss) from operations | (36,064) | (29,863) | (29,279) | ||||||||
Depreciation of property, plant and equipment | 481 | 570 | 555 | ||||||||
Pension service cost | 372 | 519 | 843 | ||||||||
Capital Expenditures | 119 | 182 | 209 | ||||||||
Identifiable Assets | 28,731 | 21,624 | 28,731 | 21,624 | |||||||
Operating Segments [Member] | Education [Member] | Intersubsegment Eliminations [Member] | |||||||||||
Segment Reporting Information [Line Items] | |||||||||||
Operating Revenues | (2,483) | (2,079) | (1,718) | ||||||||
Income (loss) from operations | (36) | 143 | (29) | ||||||||
Operating Segments [Member] | Television Broadcasting [Member] | |||||||||||
Segment Reporting Information [Line Items] | |||||||||||
Operating Revenues | 505,549 | 409,916 | 409,718 | ||||||||
Income (loss) from operations | 210,533 | 139,258 | 202,863 | ||||||||
Depreciation of property, plant and equipment | 13,204 | 12,179 | 9,942 | ||||||||
Amortization of intangible assets and impairment of goodwill and other long-lived assets | 5,632 | 6,349 | 251 | ||||||||
Pension service cost | 2,188 | 1,942 | 1,714 | ||||||||
Capital Expenditures | 27,013 | 16,802 | 27,453 | ||||||||
Identifiable Assets | 452,853 | 455,884 | 452,853 | 455,884 | |||||||
Operating Segments [Member] | Graham Healthcare Group [Member] | |||||||||||
Segment Reporting Information [Line Items] | |||||||||||
Operating Revenues | 149,275 | 154,202 | 146,962 | ||||||||
Income (loss) from operations | (8,401) | (2,569) | 2,799 | ||||||||
Depreciation of property, plant and equipment | 2,577 | 4,583 | 2,805 | ||||||||
Amortization of intangible assets and impairment of goodwill and other long-lived assets | 14,855 | 7,905 | 6,701 | ||||||||
Pension service cost | 573 | 665 | 0 | ||||||||
Capital Expenditures | 1,741 | 2,987 | 2,954 | ||||||||
Identifiable Assets | 108,596 | 129,856 | 108,596 | 129,856 | |||||||
Operating Segments [Member] | Other Businesses [Member] | |||||||||||
Segment Reporting Information [Line Items] | |||||||||||
Operating Revenues | 590,227 | 511,003 | 326,888 | ||||||||
Income (loss) from operations | (246) | (19,263) | (24,901) | ||||||||
Depreciation of property, plant and equipment | 11,835 | 11,723 | 9,570 | ||||||||
Amortization of intangible assets and impairment of goodwill and other long-lived assets | 25,674 | 31,385 | 13,806 | ||||||||
Pension service cost | 1,373 | 1,125 | 1,118 | ||||||||
Capital Expenditures | 15,154 | 9,771 | 13,093 | ||||||||
Identifiable Assets | 827,113 | 855,399 | 827,113 | 855,399 | |||||||
Corporate office [Member] | |||||||||||
Segment Reporting Information [Line Items] | |||||||||||
Operating Revenues | 0 | 0 | 0 | ||||||||
Income (loss) from operations | (52,861) | (58,710) | (53,213) | ||||||||
Depreciation of property, plant and equipment | 1,007 | 1,118 | 1,116 | ||||||||
Amortization of intangible assets and impairment of goodwill and other long-lived assets | 0 | 0 | 0 | ||||||||
Pension service cost | 5,334 | 5,235 | 5,826 | ||||||||
Capital Expenditures | 0 | 0 | 715 | ||||||||
Identifiable Assets | $ 162,971 | $ 182,905 | 162,971 | 182,905 | |||||||
Intersegment Elimination [Member] | |||||||||||
Segment Reporting Information [Line Items] | |||||||||||
Operating Revenues | $ (100) | $ (51) | $ (139) |
Summary of Quarterly Operatin_3
Summary of Quarterly Operating Results and Comprehensive Income (Loss) (Unaudited) (Narrative) (Details) $ in Millions | 3 Months Ended |
Dec. 31, 2017USD ($) | |
Periods from Q3 2016 to Q3 2017 [Member] | |
Quantifying Misstatement in Current Year Financial Statements [Line Items] | |
Prior Period Reclassification Adjustment | $ 2.8 |
Summary of Quarterly Operatin_4
Summary of Quarterly Operating Results and Comprehensive Income (Loss) (Unaudited) (Quarterly Results) (Details 1) - USD ($) $ / shares in Units, shares in Thousands, $ in Thousands | 3 Months Ended | 12 Months Ended | |||||||||
Dec. 31, 2018 | Sep. 30, 2018 | Jun. 30, 2018 | Mar. 31, 2018 | Dec. 31, 2017 | Sep. 30, 2017 | Jun. 30, 2017 | Mar. 31, 2017 | Dec. 31, 2018 | Dec. 31, 2017 | Dec. 31, 2016 | |
Quarterly Financial Information Disclosure [Abstract] | |||||||||||
Operating Revenues | $ 689,087 | $ 674,766 | $ 672,677 | $ 659,436 | $ 675,817 | $ 657,225 | $ 676,087 | $ 582,717 | $ 2,695,966 | $ 2,591,846 | $ 2,481,890 |
Operating Costs and Expenses | |||||||||||
Operating | 432,706 | 448,920 | 440,655 | 365,151 | 371,922 | 374,987 | 381,747 | 325,687 | 1,687,432 | 1,454,343 | 1,270,030 |
Selling, general and administrative | 152,624 | 131,081 | 141,378 | 225,045 | 225,477 | 228,051 | 208,973 | 225,289 | 650,128 | 887,790 | 896,097 |
Depreciation of property, plant and equipment | 14,813 | 13,648 | 13,619 | 14,642 | 15,984 | 16,002 | 15,871 | 14,652 | 56,722 | 62,509 | 64,620 |
Amortization of intangible assets | 13,362 | 12,269 | 11,399 | 10,384 | 12,897 | 10,923 | 10,531 | 6,836 | 47,414 | 41,187 | 26,671 |
Impairment of goodwill and other long-lived assets | 0 | 8,109 | 0 | 0 | 78 | 312 | 9,224 | 0 | 8,109 | 9,614 | 1,603 |
Total Operating Costs and Expenses | 613,505 | 614,027 | 607,051 | 615,222 | 626,358 | 630,275 | 626,346 | 572,464 | 2,449,805 | 2,455,443 | 2,259,021 |
Income from Operations | 75,582 | 60,739 | 65,626 | 44,214 | 49,459 | 26,950 | 49,741 | 10,253 | 246,161 | 136,403 | 222,869 |
Equity in earnings (losses) of affiliates, net | 1,426 | 9,537 | 931 | 2,579 | (4,697) | (532) | 1,331 | 649 | 14,473 | (3,249) | (7,937) |
Interest income | 1,469 | 611 | 1,901 | 1,372 | 3,184 | 861 | 1,173 | 1,363 | 5,353 | 6,581 | 3,093 |
Interest expense | (6,531) | (6,135) | (17,165) | (8,071) | (8,103) | (8,619) | (9,035) | (8,129) | (37,902) | (33,886) | (35,390) |
Debt extinguishment costs | 0 | 0 | (11,378) | 0 | (11,378) | 0 | 0 | ||||
Non-operating pension and postretirement benefit income, net | 53,900 | 22,214 | 23,041 | 21,386 | 17,657 | 17,621 | 18,620 | 18,801 | 120,541 | 72,699 | 80,665 |
(Loss) gain on marketable equity securities, net | (44,149) | 44,962 | (2,554) | (14,102) | (15,843) | 0 | 0 | ||||
Other income (expense), net | (12,559) | 3,142 | 2,333 | 9,187 | (2,640) | 1,963 | 4,069 | 849 | 2,103 | 4,241 | (12,642) |
Income Before Income Taxes | 69,138 | 135,070 | 62,735 | 56,565 | 54,860 | 38,244 | 65,899 | 23,786 | 323,508 | 182,789 | 250,658 |
Provision for Income Taxes | 12,400 | 10,000 | 16,100 | 13,600 | (159,700) | 13,400 | 23,900 | 2,700 | 52,100 | (119,700) | 81,200 |
Net Income | 56,738 | 125,070 | 46,635 | 42,965 | 214,560 | 24,844 | 41,999 | 21,086 | 271,408 | 302,489 | 169,458 |
Net Income Attributable to Noncontrolling Interests | (53) | (6) | (69) | (74) | (382) | (60) | (3) | 0 | (202) | (445) | (868) |
Net Income (Loss) Attributable to Parent | 56,685 | 125,064 | 46,566 | 42,891 | 214,178 | 24,784 | 41,996 | 21,086 | 271,206 | 302,044 | 168,590 |
Comprehensive Income (Loss) | $ (52,541) | $ 119,862 | $ 13,345 | $ 53,703 | $ 367,648 | $ 64,029 | $ 59,135 | $ 39,368 | $ 134,369 | $ 530,180 | $ 90,396 |
Per Share Information Attributable to Graham Holdings Company Common Stockholders | |||||||||||
Basic net income per common share (in usd per share) | $ 10.69 | $ 23.43 | $ 8.69 | $ 7.84 | $ 38.76 | $ 4.45 | $ 7.51 | $ 3.77 | $ 50.55 | $ 54.24 | $ 29.95 |
Basic average number of common shares outstanding (in shares) | 5,270 | 5,302 | 5,325 | 5,436 | 5,473 | 5,518 | 5,539 | 5,535 | 5,333 | 5,516 | 5,559 |
Diluted net income per common share (in usd per share) | $ 10.61 | $ 23.28 | $ 8.63 | $ 7.78 | $ 38.52 | $ 4.42 | $ 7.46 | $ 3.75 | $ 50.20 | $ 53.89 | $ 29.80 |
Diluted average number of common shares outstanding (in shares) | 5,309 | 5,337 | 5,362 | 5,473 | 5,509 | 5,554 | 5,577 | 5,569 | 5,370 | 5,552 | 5,589 |
Summary of Quarterly Operatin_5
Summary of Quarterly Operating Results and Comprehensive Income (Loss) (Unaudited) (Quarterly Impact of Certain Items) (Details 2) - USD ($) $ / shares in Units, $ in Thousands | 3 Months Ended | 12 Months Ended | |||||||||
Dec. 31, 2018 | Sep. 30, 2018 | Jun. 30, 2018 | Mar. 31, 2018 | Dec. 31, 2017 | Sep. 30, 2017 | Jun. 30, 2017 | Mar. 31, 2017 | Dec. 31, 2018 | Dec. 31, 2017 | Dec. 31, 2016 | |
Quarterly Impact of Certain Items [Line Items] | |||||||||||
Reduction to operating expenses in association with spectrum repack agreement | $ 1,400 | $ 800 | $ 600 | $ 200 | $ 3,000 | ||||||
Earnings Per Share, Diluted, Reduction to operating expenses in association with spectrum repack agreement | $ 0.26 | $ 0.14 | $ 0.11 | $ 0.04 | |||||||
Debt extinguishment costs, after tax | $ 8,600 | 8,600 | |||||||||
Earnings per share, diluted, debt extinguishment costs | $ (1.60) | ||||||||||
Gain on Lump Sum Pension Settlement and curtailment of postretirement benefit plans, after tax | $ 22,200 | 22,200 | |||||||||
Earnings per share, diluted, settlement gain related to bulk lump sum pension offering and curtailment gain | $ 4.11 | ||||||||||
(Loss) Gain on Marketable Equity Securities, after tax | $ (33,600) | $ 33,600 | $ (1,900) | $ (10,700) | (12,600) | ||||||
Earnings per share, diluted, (loss) gain on marketable equity securities | $ (6.28) | $ 6.26 | $ (0.36) | $ (1.94) | |||||||
Non-operating gain from sales, write-ups and impairments of investments, and related to sales of land and businesses, including losses on guarantor obligations | $ (7,700) | $ 8,000 | $ 1,800 | $ 3,600 | 5,700 | ||||||
Earnings per share, Diluted, non-operating gain from sales, write-ups and impairments of investments, and related to sales of businesses, including loss on guarantor obligations | $ (1.43) | $ 1.48 | $ 0.34 | $ 0.65 | |||||||
Non-operating unrealized foreign currency gains (losses), after tax | $ (1,200) | $ (100) | $ (1,700) | $ 100 | $ (2,100) | $ 900 | $ 2,200 | $ 1,100 | (2,900) | $ 2,100 | |
Earnings Per Share, Diluted, Foreign Currency Transaction Gain (Loss), Unrealized | $ (0.23) | $ (0.02) | $ (0.32) | $ 0.02 | $ (0.37) | $ 0.16 | $ 0.39 | $ 0.19 | |||
Discrete Deferred Tax Benefit | $ 17,800 | 17,800 | |||||||||
Earnings per share, Diluted, nonrecurring discrete deferred state tax benefit related to the release of valuation allowances | $ 3.31 | ||||||||||
Effective Income Tax Rate Reconciliation, Share-Based Compensation, Excess Tax Benefit | $ 1,800 | $ 5,900 | (1,731) | (6,023) | $ 0 | ||||||
Earnings Per Share, Diluted, Effective Income Tax Rate Reconciliation, Share-based Compensation Excess Tax Benefit | $ 0.33 | $ 1.06 | |||||||||
Net nonrecurring deferred tax benefit adjustment | $ 177,500 | 177,500 | |||||||||
Earnings Per Share, Diluted, Net Deferred Tax Benefit | $ 31.68 | ||||||||||
Securities Subject to Mandatory Redemption [Member] | |||||||||||
Quarterly Impact of Certain Items [Line Items] | |||||||||||
Interest Expense, after tax | $ 6,200 | 6,200 | |||||||||
Earnings per share, diluted, interest expense | $ (1.14) | ||||||||||
Education [Member] | |||||||||||
Quarterly Impact of Certain Items [Line Items] | |||||||||||
Restructuring And Related Charges, Net of Tax | $ 4,500 | $ 1,100 | $ 400 | $ 300 | 6,300 | ||||||
Earnings Per Share, Diluted, Restructuring And Related Charges | $ (0.81) | $ (0.20) | $ (0.06) | $ (0.05) | |||||||
Graham Healthcare Group [Member] | |||||||||||
Quarterly Impact of Certain Items [Line Items] | |||||||||||
Impairment of Intangible Assets, After Tax | $ 5,800 | ||||||||||
Earnings per Share, Diluted, Impairment Of Intangible Assets | $ (1.08) | ||||||||||
Other Businesses [Member] | |||||||||||
Quarterly Impact of Certain Items [Line Items] | |||||||||||
Goodwill and Other Long-Lived Asset Impairment, Net of Tax | $ 5,800 | $ 5,800 | |||||||||
Earnings Per Share, Diluted, Goodwill And Other Long-Lived Assets Impairment, Net of Tax | $ (1.03) | ||||||||||
Kaplan University Transaction [Member] | Education [Member] | Higher Education [Member] | |||||||||||
Quarterly Impact of Certain Items [Line Items] | |||||||||||
Gain on Kaplan University transaction, after tax | $ 1,800 | $ 1,800 | |||||||||
Earnings per share, diluted, gain from Kaplan University transaction | $ 0.33 |
Uncategorized Items - ghc-20181
Label | Element | Value |
AOCI Attributable to Parent [Member] | ||
Cumulative Effect of New Accounting Principle in Period of Adoption | us-gaap_CumulativeEffectOfNewAccountingPrincipleInPeriodOfAdoption | $ (194,889,000) |