Cover Page
Cover Page - shares | 9 Months Ended | |
Sep. 30, 2019 | Oct. 25, 2019 | |
Document Type | 10-Q | |
Document Quarterly Report | true | |
Document Period End Date | Sep. 30, 2019 | |
Document Transition Report | false | |
Entity File Number | 001-06714 | |
Entity Registrant Name | GRAHAM HOLDINGS CO | |
Entity Incorporation, State or Country Code | DE | |
Entity Tax Identification Number | 53-0182885 | |
Entity Address, Address Line One | 1300 North 17th Street | |
Entity Address, City or Town | Arlington | |
Entity Address, State or Province | VA | |
Entity Address, Postal Zip Code | 22209 | |
City Area Code | 703 | |
Local Phone Number | 345-6300 | |
Title of 12(b) Security | Class B Common Stock, par value $1.00 per share | |
Trading Symbol | GHC | |
Security Exchange Name | NYSE | |
Entity Current Reporting Status | Yes | |
Entity Interactive Data Current | Yes | |
Entity Filer Category | Large Accelerated Filer | |
Entity Small Business | false | |
Entity Emerging Growth Company | false | |
Entity Shell Company | false | |
Entity Central Index Key | 0000104889 | |
Current Fiscal Year End Date | --12-31 | |
Document Fiscal Year Focus | 2019 | |
Document Fiscal Period Focus | Q3 | |
Amendment Flag | false | |
Class A Common Stock [Member] | ||
Entity Common Stock, Shares Outstanding | 964,001 | |
Class B Common Stock [Member] | ||
Entity Common Stock, Shares Outstanding | 4,350,385 |
Condensed Consolidated Statemen
Condensed Consolidated Statements of Operations (Unaudited) - USD ($) shares in Thousands, $ in Thousands | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2019 | Sep. 30, 2018 | Sep. 30, 2019 | Sep. 30, 2018 | |
Income Statement [Abstract] | ||||
Operating Revenues | $ 738,820 | $ 674,766 | $ 2,168,621 | $ 2,006,879 |
Operating Costs and Expenses [Abstract] | ||||
Operating | 517,935 | 448,920 | 1,498,928 | 1,254,726 |
Selling, general and administrative | 175,322 | 131,081 | 472,124 | 497,504 |
Depreciation of property, plant and equipment | 15,351 | 13,648 | 42,758 | 41,909 |
Amortization of intangible assets | 13,572 | 12,269 | 39,512 | 34,052 |
Impairment of long-lived assets | 372 | 8,109 | 1,065 | 8,109 |
Total Operating Costs and Expenses | 722,552 | 614,027 | 2,054,387 | 1,836,300 |
Income from Operations | 16,268 | 60,739 | 114,234 | 170,579 |
Equity in earnings of affiliates, net | 4,683 | 9,537 | 7,829 | 13,047 |
Interest income | 1,474 | 611 | 4,753 | 3,884 |
Interest expense | (6,776) | (6,135) | (22,587) | (31,371) |
Debt Extinguishment Costs | 0 | 0 | 0 | (11,378) |
Non-operating pension and postretirement benefit income, net | 19,556 | 22,214 | 51,737 | 66,641 |
Gain on marketable equity securities, net | 17,404 | 44,962 | 49,261 | 28,306 |
Other income, net | 5,556 | 3,142 | 36,135 | 14,662 |
Income Before Income Taxes | 58,165 | 135,070 | 241,362 | 254,370 |
Provision for Income Taxes | 15,200 | 10,000 | 59,500 | 39,700 |
Net Income | 42,965 | 125,070 | 181,862 | 214,670 |
Net Loss (Income) Attributable to Noncontrolling Interests | 180 | (6) | 112 | (149) |
Net Income Attributable to Graham Holdings Company Common Stockholders | $ 43,145 | $ 125,064 | $ 181,974 | $ 214,521 |
Per Share Information Attributable to Graham Holdings Company Common Stockholders | ||||
Basic net income per common share in dollars per share | $ 8.12 | $ 23.43 | $ 34.24 | $ 39.81 |
Basic average number of common shares outstanding in shares | 5,285 | 5,302 | 5,285 | 5,354 |
Diluted net income per common share in dollars per share | $ 8.05 | $ 23.28 | $ 33.96 | $ 39.54 |
Diluted average number of common shares outstanding in shares | 5,329 | 5,337 | 5,328 | 5,390 |
Condensed Consolidated Statem_2
Condensed Consolidated Statements of Comprehensive Income (Unaudited) - USD ($) $ in Thousands | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2019 | Sep. 30, 2018 | Sep. 30, 2019 | Sep. 30, 2018 | |
Statement of Comprehensive Income [Abstract] | ||||
Net Income | $ 42,965 | $ 125,070 | $ 181,862 | $ 214,670 |
Foreign currency translation adjustments: | ||||
Translation adjustments arising during the period | (16,684) | (2,844) | (17,755) | (22,447) |
Pension and other postretirement plans: | ||||
Amortization of net prior service (credit) cost included in net income | (932) | 69 | (3,210) | 215 |
Amortization of net actuarial gain included in net income | (511) | (3,295) | (1,534) | (7,956) |
Total pension and other postretirement plans, before tax | (1,443) | (3,226) | (4,744) | (7,741) |
Cash flow hedges (loss) gain | (477) | (6) | (904) | 601 |
Other Comprehensive Loss, Before Tax | (18,604) | (6,076) | (23,403) | (29,587) |
Income tax benefit related to items of other comprehensive loss | 518 | 874 | 1,512 | 1,976 |
Other Comprehensive Loss, Net of Tax | (18,086) | (5,202) | (21,891) | (27,611) |
Comprehensive Income | 24,879 | 119,868 | 159,971 | 187,059 |
Comprehensive loss (income) attributable to noncontrolling interests | 180 | (6) | 112 | (149) |
Total Comprehensive Income Attributable to Graham Holdings Company | $ 25,059 | $ 119,862 | $ 160,083 | $ 186,910 |
Condensed Consolidated Balance
Condensed Consolidated Balance Sheets - USD ($) $ in Thousands | Sep. 30, 2019 | Dec. 31, 2018 |
Current Assets | ||
Cash and cash equivalents | $ 142,264 | $ 253,256 |
Restricted cash | 15,143 | 10,859 |
Investments in marketable equity securities and other investments | 554,211 | 514,581 |
Accounts receivable, net | 612,141 | 582,280 |
Income taxes receivable | 9,440 | 19,166 |
Inventories and contracts in progress | 113,196 | 69,477 |
Other current assets | 87,863 | 82,723 |
Total Current Assets | 1,534,258 | 1,532,342 |
Property, Plant and Equipment, Net | 370,882 | 293,085 |
Lease Right-of-Use Assets | 503,830 | 0 |
Investments in Affiliates | 163,986 | 143,813 |
Goodwill, Net | 1,345,393 | 1,297,712 |
Indefinite-Lived Intangible Assets | 144,477 | 99,052 |
Amortized Intangible Assets, Net | 245,393 | 263,261 |
Prepaid Pension Cost | 1,038,676 | 1,003,558 |
Deferred Income Taxes | 11,400 | 13,388 |
Deferred Charges and Other Assets | 129,451 | 117,830 |
Total Assets | 5,487,746 | 4,764,041 |
Current Liabilities | ||
Accounts payable and accrued liabilities | 477,522 | 486,578 |
Deferred revenue | 337,573 | 308,728 |
Income taxes payable | 6,668 | 10,496 |
Current portion of lease liabilities | 78,114 | 0 |
Current portion of long-term debt | 81,697 | 6,360 |
Dividends declared | 7,387 | 0 |
Total Current Liabilities | 988,961 | 812,162 |
Accrued Compensation and Related Benefits | 177,116 | 179,652 |
Other Liabilities | 27,398 | 57,901 |
Deferred Income Taxes | 348,054 | 322,421 |
Lease Liabilities | 462,868 | 0 |
Long-Term Debt | 420,535 | 470,777 |
Total Liabilities | 2,424,932 | 1,842,913 |
Redeemable Noncontrolling Interest | 3,903 | 4,346 |
Preferred Stock | 0 | 0 |
Common Stockholders’ Equity | ||
Common stock | 20,000 | 20,000 |
Capital in excess of par value | 379,923 | 378,837 |
Retained earnings | 6,388,546 | 6,236,125 |
Accumulated other comprehensive income, net of tax | ||
Cumulative foreign currency translation adjustment | (47,025) | (29,270) |
Unrealized gain on pensions and other postretirement plans | 229,373 | 232,836 |
Cash flow hedges | (410) | 263 |
Cost of Class B common stock held in treasury | (3,918,397) | (3,922,009) |
Total Common Stockholders' Equity | 3,052,010 | 2,916,782 |
Noncontrolling Interest | 6,901 | 0 |
Total Equity | 3,058,911 | 2,916,782 |
Total Liabilities and Equity | $ 5,487,746 | $ 4,764,041 |
Condensed Consolidated Statem_3
Condensed Consolidated Statements of Cash Flows (Unaudited) - USD ($) | 9 Months Ended | |
Sep. 30, 2019 | Sep. 30, 2018 | |
Cash Flows from Operating Activities | ||
Net Income | $ 181,862,000 | $ 214,670,000 |
Adjustments to reconcile net income to net cash provided by operating activities: | ||
Depreciation, amortization and impairment of long-lived assets | 83,335,000 | 84,070,000 |
Amortization of lease right-of-use asset | 61,797,000 | 0 |
Net pension benefit and special separation benefit expense | (33,061,000) | (55,458,000) |
Gain on marketable equity securities and cost method investments, net | (54,341,000) | (36,793,000) |
Gain on disposition of businesses, property, plant and equipment and investments, net | (28,871,000) | (13,379,000) |
Provision for doubtful trade and other receivables | 21,532,000 | 7,858,000 |
Debt extinguishment costs | 0 | 10,563,000 |
Stock-based compensation expense, net | 4,752,000 | 5,172,000 |
Foreign exchange (gain) loss | (1,284,000) | 2,205,000 |
Write-down of cost method investments | 0 | 2,500,000 |
Equity in earnings of affiliates, net of distributions | (3,882,000) | (10,294,000) |
Provision (benefit) for deferred income taxes | 26,310,000 | (10,867,000) |
Change in operating assets and liabilities: | ||
Accounts receivable, net | (47,308,000) | 47,342,000 |
Inventories | (11,969,000) | (10,913,000) |
Accounts payable and accrued liabilities | (60,708,000) | (95,100,000) |
Deferred revenue | 24,920,000 | 38,148,000 |
Income taxes receivable | 5,526,000 | 23,073,000 |
Other assets and other liabilities, net | (96,913,000) | (12,844,000) |
Other | 587,000 | 1,905,000 |
Net Cash Provided by Operating Activities | 72,284,000 | 191,858,000 |
Cash Flows from Investing Activities | ||
Investments in certain businesses, net of cash acquired | (162,060,000) | (111,451,000) |
Purchases of property, plant and equipment | (75,712,000) | (58,850,000) |
Net proceeds (payments) from disposition of businesses, property, plant and equipment and investments | 53,785,000 | (13,483,000) |
Investments in equity affiliates, cost method and other investments | (25,836,000) | (10,679,000) |
Proceeds from sales of marketable equity securities | 17,586,000 | 66,741,000 |
Purchases of marketable equity securities | (7,499,000) | 0 |
Loan to related party and advance related to Kaplan University transaction | (3,500,000) | (28,061,000) |
Return of investment in equity affiliates | 786,000 | 4,521,000 |
Net Cash Used in Investing Activities | (202,450,000) | (151,262,000) |
Cash Flows from Financing Activities | ||
Common shares repurchased | 0 | (110,848,000) |
Issuance of borrowings | 30,000,000 | 400,000,000 |
Net borrowing under revolving credit facility | 5,000,000 | 0 |
Net proceeds from vehicle floor plan payable | 15,106,000 | 0 |
Dividends paid | (22,167,000) | (21,564,000) |
Issuance of noncontrolling interest | 6,536,000 | 0 |
Purchase of noncontrolling interest | (550,000) | (16,500,000) |
Repayments of borrowings and early redemption premium | (7,901,000) | (417,112,000) |
Payments of debt financing costs | (33,000) | (6,490,000) |
Other | (356,000) | 5,303,000 |
Net Cash Provided by (Used in) Financing Activities | 25,635,000 | (167,211,000) |
Effect Of Currency Exchange Rate Change | (2,177,000) | (4,216,000) |
Net Decrease in Cash and Cash Equivalents and Restricted Cash | (106,708,000) | (130,831,000) |
Beginning Cash and Cash Equivalents and Restricted Cash | 264,115,000 | 407,566,000 |
Ending Cash and Cash Equivalents and Restricted Cash | $ 157,407,000 | $ 276,735,000 |
Condensed Consolidated Statem_4
Condensed Consolidated Statements of Changes in Common Stockholders' Equity Statement - USD ($) $ in Thousands | Total | Common Stock [Member] | Additional Paid-in Capital [Member] | Retained Earnings [Member] | AOCI Attributable to Parent [Member] | Treasury Stock [Member] | Noncontrolling Interest [Member] |
As of at Dec. 31, 2017 | $ 2,915,145 | $ 20,000 | $ 370,700 | $ 5,791,724 | $ 535,555 | $ (3,802,834) | $ 0 |
Increase (Decrease) in Stockholders' Equity [Roll Forward] | |||||||
Net income for the period | 42,965 | 42,965 | |||||
Net income attributable to redeemable noncontrolling interests | (73) | (73) | |||||
Dividends on common stock | (14,638) | (14,638) | |||||
Repurchase of Class B Common Stock | (79,001) | (79,001) | |||||
Issuance of Class B common stock, net of restricted stock awards and forfeitures | (70) | (189) | 119 | ||||
Amortization of unearned stock compensation and stock option expense | 2,325 | 2,325 | |||||
Other comprehensive income (loss), net of income taxes | 10,812 | 10,812 | |||||
As of at Mar. 31, 2018 | 2,884,388 | 20,000 | 372,836 | 6,021,790 | 351,478 | (3,881,716) | 0 |
As of at Dec. 31, 2017 | 4,607 | ||||||
Increase (Decrease) in Temporary Equity [Roll Forward] | |||||||
Net income attributable to redeemable noncontrolling interests | 73 | ||||||
As of at Mar. 31, 2018 | 4,680 | ||||||
As of at Dec. 31, 2017 | 2,915,145 | 20,000 | 370,700 | 5,791,724 | 535,555 | (3,802,834) | 0 |
Increase (Decrease) in Stockholders' Equity [Roll Forward] | |||||||
Net income for the period | 214,670 | ||||||
Other comprehensive income (loss), net of income taxes | (27,611) | ||||||
As of at Sep. 30, 2018 | 2,974,831 | 20,000 | 376,412 | 6,179,422 | 313,055 | (3,914,058) | 0 |
As of at Dec. 31, 2017 | 4,607 | ||||||
As of at Sep. 30, 2018 | 4,706 | ||||||
As of at Mar. 31, 2018 | 2,884,388 | 20,000 | 372,836 | 6,021,790 | 351,478 | (3,881,716) | 0 |
Increase (Decrease) in Stockholders' Equity [Roll Forward] | |||||||
Net income for the period | 46,635 | 46,635 | |||||
Net income attributable to redeemable noncontrolling interests | (70) | (70) | |||||
Dividends on common stock | (6,949) | (6,949) | |||||
Repurchase of Class B Common Stock | (15,091) | (15,091) | |||||
Issuance of Class B common stock, net of restricted stock awards and forfeitures | (990) | (496) | (494) | ||||
Amortization of unearned stock compensation and stock option expense | 2,162 | 2,162 | |||||
Other comprehensive income (loss), net of income taxes | (33,221) | (33,221) | |||||
As of at Jun. 30, 2018 | 2,876,864 | 20,000 | 374,502 | 6,061,406 | 318,257 | (3,897,301) | 0 |
As of at Mar. 31, 2018 | 4,680 | ||||||
Increase (Decrease) in Temporary Equity [Roll Forward] | |||||||
Net income attributable to redeemable noncontrolling interests | 70 | ||||||
As of at Jun. 30, 2018 | 4,750 | ||||||
Increase (Decrease) in Stockholders' Equity [Roll Forward] | |||||||
Net income for the period | 125,070 | 125,070 | |||||
Net income attributable to redeemable noncontrolling interests | (6) | (6) | |||||
Dividends on common stock | (7,048) | (7,048) | |||||
Repurchase of Class B Common Stock | (16,757) | (16,757) | |||||
Issuance of Class B common stock, net of restricted stock awards and forfeitures | (27) | (27) | |||||
Amortization of unearned stock compensation and stock option expense | 1,937 | 1,937 | |||||
Other comprehensive income (loss), net of income taxes | (5,202) | (5,202) | |||||
Other | 0 | ||||||
As of at Sep. 30, 2018 | 2,974,831 | 20,000 | 376,412 | 6,179,422 | 313,055 | (3,914,058) | 0 |
Increase (Decrease) in Temporary Equity [Roll Forward] | |||||||
Net income attributable to redeemable noncontrolling interests | 6 | ||||||
Other | (50) | ||||||
As of at Sep. 30, 2018 | 4,706 | ||||||
As of at Dec. 31, 2018 | 2,916,782 | 20,000 | 378,837 | 6,236,125 | 203,829 | (3,922,009) | 0 |
Increase (Decrease) in Stockholders' Equity [Roll Forward] | |||||||
Net income for the period | 81,702 | 81,702 | |||||
Issuance of noncontrolling interest | 6,000 | 6,000 | |||||
Net (income) loss attributable to noncontrolling interest | 0 | 62 | (62) | ||||
Net income attributable to redeemable noncontrolling interests | (16) | (16) | |||||
Change in redemption value of redeemable noncontrolling interest | (54) | (54) | |||||
Dividends on common stock | (14,779) | (14,779) | |||||
Issuance of Class B common stock, net of restricted stock awards and forfeitures | (28) | (3,783) | 3,755 | ||||
Amortization of unearned stock compensation and stock option expense | 1,639 | 1,639 | |||||
Other comprehensive income (loss), net of income taxes | 8,290 | 8,290 | |||||
Purchase of redeemable noncontrolling interest | 0 | ||||||
As of at Mar. 31, 2019 | 2,999,536 | 20,000 | 376,639 | 6,303,094 | 212,119 | (3,918,254) | 5,938 |
As of at Dec. 31, 2018 | 4,346 | ||||||
Increase (Decrease) in Temporary Equity [Roll Forward] | |||||||
Net income attributable to redeemable noncontrolling interests | 16 | ||||||
Change in redemption value of redeemable noncontrolling interests | 54 | ||||||
Purchase of redeemable noncontrolling interest | (550) | ||||||
As of at Mar. 31, 2019 | 3,866 | ||||||
As of at Dec. 31, 2018 | 2,916,782 | 20,000 | 378,837 | 6,236,125 | 203,829 | (3,922,009) | 0 |
Increase (Decrease) in Stockholders' Equity [Roll Forward] | |||||||
Net income for the period | 181,862 | ||||||
Other comprehensive income (loss), net of income taxes | (21,891) | ||||||
As of at Sep. 30, 2019 | 3,058,911 | 20,000 | 379,923 | 6,388,546 | 181,938 | (3,918,397) | 6,901 |
As of at Dec. 31, 2018 | 4,346 | ||||||
As of at Sep. 30, 2019 | 3,903 | ||||||
As of at Mar. 31, 2019 | 2,999,536 | 20,000 | 376,639 | 6,303,094 | 212,119 | (3,918,254) | 5,938 |
Increase (Decrease) in Stockholders' Equity [Roll Forward] | |||||||
Net income for the period | 57,195 | 57,195 | |||||
Net (income) loss attributable to noncontrolling interest | 0 | (104) | 104 | ||||
Net income attributable to redeemable noncontrolling interests | (10) | (10) | |||||
Dividends on common stock | (7,388) | (7,388) | |||||
Amortization of unearned stock compensation and stock option expense | 1,616 | 1,616 | |||||
Other comprehensive income (loss), net of income taxes | (12,095) | (12,095) | |||||
As of at Jun. 30, 2019 | 3,038,854 | 20,000 | 378,255 | 6,352,787 | 200,024 | (3,918,254) | 6,042 |
As of at Mar. 31, 2019 | 3,866 | ||||||
Increase (Decrease) in Temporary Equity [Roll Forward] | |||||||
Net income attributable to redeemable noncontrolling interests | 10 | ||||||
As of at Jun. 30, 2019 | 3,876 | ||||||
Increase (Decrease) in Stockholders' Equity [Roll Forward] | |||||||
Net income for the period | 42,965 | 42,965 | |||||
Issuance of noncontrolling interest | 536 | 536 | |||||
Net (income) loss attributable to noncontrolling interest | 0 | 207 | (207) | ||||
Acquisition of noncontrolling interest | 530 | 530 | |||||
Net income attributable to redeemable noncontrolling interests | (27) | (27) | |||||
Dividends on common stock | (7,386) | (7,386) | |||||
Issuance of Class B common stock, net of restricted stock awards and forfeitures | (144) | (1) | (143) | ||||
Amortization of unearned stock compensation and stock option expense | 1,669 | 1,669 | |||||
Other comprehensive income (loss), net of income taxes | (18,086) | (18,086) | |||||
As of at Sep. 30, 2019 | 3,058,911 | $ 20,000 | $ 379,923 | $ 6,388,546 | $ 181,938 | $ (3,918,397) | $ 6,901 |
Increase (Decrease) in Temporary Equity [Roll Forward] | |||||||
Net income attributable to redeemable noncontrolling interests | 27 | ||||||
As of at Sep. 30, 2019 | $ 3,903 |
Organization, Basis of Presenta
Organization, Basis of Presentation and Recent Accounting Pronouncements | 9 Months Ended |
Sep. 30, 2019 | |
Organization, Consolidation and Presentation of Financial Statements [Abstract] | |
Organization, Basis of Presentation and Recent Accounting Pronouncements | ORGANIZATION, BASIS OF PRESENTATION AND RECENT ACCOUNTING PRONOUNCEMENTS Graham Holdings Company (the Company), is a diversified education and media company. The Company’s Kaplan subsidiary provides a wide variety of educational services, both domestically and outside the United States. The Company’s media operations comprise the ownership and operation of seven television broadcasting stations, several websites and print publications, and a marketing solutions provider. The Company’s other business operations include manufacturing, automotive dealerships, restaurants and entertainment venues and home health and hospice services. Basis of Presentation – The accompanying condensed consolidated financial statements have been prepared in accordance with: (i) generally accepted accounting principles in the United States of America (GAAP) for interim financial information; (ii) the instructions to Form 10-Q; and (iii) the guidance of Rule 10-01 of Regulation S-X under the Securities and Exchange Act of 1934, as amended, for financial statements required to be filed with the Securities and Exchange Commission (SEC). They include the assets, liabilities, results of operations and cash flows of the Company, including its domestic and foreign subsidiaries that are more than 50% owned or otherwise controlled by the Company. As permitted under such rules, certain notes and other financial information normally required by GAAP have been condensed or omitted. Management believes the accompanying condensed consolidated financial statements reflect all normal and recurring adjustments necessary for a fair statement of the Company’s financial position, results of operations, and cash flows as of and for the periods presented herein. The Company’s results of operations for the three and nine months ended September 30, 2019 and 2018 may not be indicative of the Company’s future results. These condensed consolidated financial statements are unaudited and should be read in conjunction with the Company’s audited consolidated financial statements and the notes thereto included in the Company’s Annual Report on Form 10-K for the fiscal year ended December 31, 2018 . The year-end condensed consolidated balance sheet data was derived from audited financial statements, but does not include all disclosures required by GAAP. Use of Estimates in the Preparation of the Condensed Consolidated Financial Statements – The preparation of the condensed consolidated financial statements in conformity with GAAP requires management to make estimates and judgments that affect the amounts reported herein. Management bases its estimates and assumptions on historical experience and on various other factors that are believed to be reasonable under the circumstances. Due to the inherent uncertainty involved in making estimates, actual results reported in future periods may be affected by changes in those estimates. Recently Adopted and Issued Accounting Pronouncements – In February 2016, the Financial Accounting Standards Board (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 previous guidance for operating leases. This new guidance supersedes all prior guidance. The guidance is effective for interim and fiscal years beginning after December 15, 2018. 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 adopted the new guidance on January 1, 2019 using the effective date method. The Company elected the available package of transition practical expedients, which allowed the Company to use its historical assessments of whether contracts are or contain leases, lease classification and initial direct costs. Additionally, the Company elected the transition practical expedient to use hindsight to determine the lease term. Upon adoption of the new guidance, the Company recognized right-of-use assets of $ 369.3 million and lease liabilities of $ 418.3 million . The cumulative effect of the changes to the Company’s Condensed Consolidated Balance Sheets as a result of adopting the new guidance was as follows: Balance as of December 31, 2018 Adjustments Balance as of January 1, 2019 Assets Other current assets $ 82,723 $ (5,595 ) $ 77,128 Lease Right-of-Use Assets — 369,333 369,333 Liabilities Accounts payable and accrued liabilities $ 486,578 $ (14,029 ) $ 472,549 Current portion of lease liabilities — 86,747 86,747 Other Liabilities 57,901 (40,500 ) 17,401 Lease Liabilities — 331,520 331,520 |
Acquisitions and Dispositions o
Acquisitions and Dispositions of Businesses | 9 Months Ended |
Sep. 30, 2019 | |
Acquisitions And Dispositions [Abstract] | |
Acquisitions and Dispositions of Businesses | ACQUISITIONS AND DISPOSITIONS OF BUSINESSES Acquisitions . In the first nine months of 2019, the Company acquired seven businesses; one in education, two in healthcare, one in manufacturing, and three in other businesses for $191.6 million in cash and contingent consideration and the assumption of $25.8 million in floor plan payables. On January 31, 2019, the Company acquired an interest in two automotive dealerships for cash and the assumption of floor plan payables (see Note 5) . In connection with the acquisition, the automotive 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 (see Note 8) . The Company has a 90% interest in the automotive subsidiary. The Company also entered into a management services agreement with an entity affiliated with Christopher J. Ourisman, a member of the Ourisman Automotive Group family of dealerships. Mr. Ourisman and his team will operate and manage the dealerships. In addition, the Company advanced $3.5 million to the minority shareholder, an entity controlled by Mr. Ourisman, at an interest rate of 6% per annum. The acquisition is expected to provide benefits in the future by diversifying the Company’s business operations and is included in other businesses. In July 2019, Graham Healthcare Group (GHG) acquired an interest in a small business which is expected to provide certain strategic benefits in the future and is included in healthcare. On July 11, 2019, Kaplan acquired Heverald, the owner of ESL Education, Europe’s largest language-travel agency and Alpadia, a chain of German and French language schools and junior summer camps. The acquisition is expected to provide synergies within Kaplan’s International English business and is included in its international division. On July 31, 2019, the Company announced the closing of its acquisition of Clyde’s Restaurant Group (CRG). CRG owns and operates 13 restaurants and entertainment venues in the Washington, DC metropolitan area, including Old Ebbitt Grill and The Hamilton, two of the top 20 highest grossing independent restaurants in the United States. CRG is managed by its existing management team as a wholly-owned subsidiary of the Company. The acquisition is expected to provide benefits in the future by diversifying the Company’s business operations and is included in other businesses. In September 2019, Joyce/Dayton Corp. acquired the assets of a small business. The acquisition is expected to complement current product offerings and is included in manufacturing. During 2018 , the Company acquired eight businesses, five in education, one in manufacturing, one in healthcare, and one in SocialCode 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 manufacturing. 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. 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. Acquisition-related costs for acquisitions that closed during the first nine months of 2019 were $2.3 million and were expensed as incurred. Acquisition-related costs for acquisitions that closed during the first nine months of 2018 were $1.2 million and were expensed as incurred. The aggregate purchase price of the 2019 and 2018 acquisitions was allocated as follows (2019 on a preliminary basis), based on acquisition date fair values to the following assets and liabilities: Purchase Price Allocation Nine Months Ended Year Ended (in thousands) September 30, 2019 December 31, 2018 Accounts receivable $ 4,697 $ 2,344 Inventory 31,750 1,268 Property, plant and equipment 52,577 1,518 Lease Right-of-Use Assets 100,933 — Goodwill 63,387 41,840 Indefinite-lived intangible assets 46,900 — Amortized intangible assets 21,291 78,427 Other assets 8,352 5,198 Floor plan payables (25,755 ) — Other liabilities (38,828 ) (7,678 ) Deferred income taxes (2,191 ) (4,900 ) Current and noncurrent lease liabilities (97,996 ) — Noncontrolling interest (530 ) — Aggregate purchase price, net of cash acquired $ 164,587 $ 118,017 The 2019 fair values recorded were based upon preliminary valuations and the estimates and assumptions used in such valuations are subject to change within the measurement period (up to one year from the acquisition date). The recording of deferred tax assets or liabilities, working capital and the final amount of residual goodwill and other intangibles are not yet finalized. 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 $49.0 million and $32.3 million of goodwill for income tax purposes for the acquisitions completed in 2019, and 2018 , respectively. The acquired companies were consolidated into the Company’s financial statements starting on their respective acquisition dates. The Company’s Condensed Consolidated Statements of Operations include aggregate revenues and operating losses for the companies acquired in 2019 of $96.2 million and $2.0 million , respectively, for the third quarter of 2019. The Company’s Condensed Consolidated Statements of Operations include aggregate revenues and operating losses of $199.6 million and $0.5 million , respectively, for the first nine months of 2019. The following unaudited pro forma financial information presents the Company’s results as if the current year acquisitions had occurred at the beginning of 2018 . The unaudited pro forma information also includes the 2018 acquisitions as if they occurred at the beginning of 2017 : Three Months Ended Nine Months Ended (in thousands) 2019 2018 2019 2018 Operating revenues $ 750,076 $ 787,808 $ 2,267,502 $ 2,349,342 Net income 43,849 125,761 178,551 217,589 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 March 22, 2018, the Company closed on the Kaplan University (KU) transaction and 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 related to the sale of the institutional assets as part of its fee to the extent there are sufficient revenues available after paying all amounts required by the Transition and Operations Support Agreement (TOSA). The Company did not recognize any contingent consideration as part of the initial disposition. The Company recorded a $0.5 million contingent consideration gain in each of the three months ended September 30, 2019 and September 30, 2018. In the nine months ended September 30, 2019 and September 30, 2018, the Company recorded a $0.9 million and $1.9 million contingent consideration gain, respectively. The revenue and operating income related to the KU business disposed of are as follows: (in thousands) Three Months Ended September 30, 2018 Nine Months Ended September 30, 2018 Revenue $ — $ 91,526 Operating income — 213 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. As a result of these sales, the Company reported gains in other non-operating income (see Note 13) . Other Transactions. In March 2019, a Hoover minority shareholder put some of his shares to the Company, which had a redemption value of $0.6 million . Following the redemption, the Company owns 98.01% of Hoover. 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. |
Investments
Investments | 9 Months Ended |
Sep. 30, 2019 | |
Investments [Abstract] | |
Investments | INVESTMENTS Money Market Investments. As of September 30, 2019 , the Company had no money market investments, compared to $75.5 million at December 31, 2018 , that are classified as cash and cash equivalents in the Company’s Condensed Consolidated Balance Sheets. Investments in Marketable Equity Securities. Investments in marketable equity securities consist of the following: As of September 30, December 31, (in thousands) Total cost $ 282,349 $ 282,563 Gross unrealized gains 253,215 216,111 Gross unrealized losses — (2,284 ) Total Fair Value $ 535,564 $ 496,390 The Company purchased $7.5 million of marketable equity securities during the first nine months of 2019 . There were no purchases of marketable equity securities during the first nine months of 2018 . During the first nine months of 2019 , the gross cumulative realized gains from the sales of marketable equity securities were $9.6 million . The total proceeds from such sales were $17.6 million . During the first nine months of 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 . The gain on marketable equity securities comprised the following: Three Months Ended Nine Months Ended (in thousands) 2019 2018 2019 2018 Gain on marketable equity securities, net $ 17,404 $ 44,962 $ 49,261 $ 28,306 Less: Net losses (gains) in earnings from marketable equity securities sold and donated 61 — (2,919 ) 4,271 Net unrealized gains in earnings from marketable equity securities still held at the end of the period $ 17,465 $ 44,962 $ 46,342 $ 32,577 Investments in Affiliates. As of September 30, 2019 , 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 three and nine months ended September 30, 2019 , the Company recorded $2.4 million and $7.0 million , respectively in revenue for services provided to the affiliates of GHG. For the three and nine months ended September 30, 2018 , the Company recorded $2.5 million and $9.5 million , respectively, in revenue for services provided to the affiliates of GHG. In the third quarter of 2018, the Company recorded $7.9 million in gains in equity in earnings of affiliates related to two of its investments. In the second quarter of 2019, the Company made an investment in Framebridge, a custom framing service company based in Washington, DC. The Company accounts for this investment under the equity method, and included it in Investments in Affiliates on the Condensed Consolidated Balance Sheet. Timothy J. O’Shaughnessy, President and Chief Executive Officer of Graham Holdings Company, is a personal investor in Framebridge and serves as Chairman of the Board. In February 2019, the Company sold its interest in Gimlet Media. In connection with this sale, the Company recorded a gain of $29.0 million in the first quarter of 2019. The total proceeds from the sale were $33.5 million . 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. 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 $38.5 million and $30.6 million as of September 30, 2019 and December 31, 2018 , respectively. During the three and nine months ended September 30, 2019, the Company recorded gains of $3.7 million and $5.1 million , respectively, to those equity securities based on observable transactions. During the three and nine months ended September 30, 2018, the Company recorded gains of $8.5 million to those equity securities based on observable transactions and an impairment loss of $2.5 million . |
Accounts Receivable
Accounts Receivable | 9 Months Ended |
Sep. 30, 2019 | |
Accounts and Financing Receivable, after Allowance for Credit Loss [Abstract] | |
Accounts Receivable | ACCOUNTS RECEIVABLE Accounts receivable consist of the following: As of September 30, December 31, (in thousands) Receivables from contracts with customers, less doubtful accounts of $13,060 and $14,775 $ 582,944 $ 538,021 Other receivables 29,197 44,259 $ 612,141 $ 582,280 Bad debt expense was $0.4 million and $1.8 million for the three months ended September 30, 2019 and 2018 , respectively; and $0.5 million and $7.9 million for the nine months ended September 30, 2019 and 2018 , respectively. |
Inventories, Contracts in Progr
Inventories, Contracts in Progress and Vehicle Floor Plan Payable | 9 Months Ended |
Sep. 30, 2019 | |
Inventory, Net of Allowances, Customer Advances and Progress Billings [Abstract] | |
Inventories, Contracts in Progress and Vehicle Floor Plan Payable | INVENTORIES, CONTRACTS IN PROGRESS AND VEHICLE FLOOR PLAN PAYABLE Inventories and contracts in progress consist of the following: As of September 30, December 31, (in thousands) Raw materials $ 35,776 $ 37,248 Work-in-process 11,176 11,633 Finished goods 62,451 17,861 Contracts in progress 3,793 2,735 $ 113,196 $ 69,477 The Company finances all new vehicle inventory through a standardized floor plan facility (the “floor plan facility”) with SunTrust Bank. The new vehicle floor plan facility bears interest at variable rates that are based on LIBOR plus 1.15% per annum. The weighted average interest rate for the floor plan facility was 3.4% for both the three and nine months ended September 30, 2019 . As of September 30, 2019 , the aggregate capacity under the floor plan facility was $50 million , of which $40.9 million had been utilized, and is included in accounts payable and accrued liabilities in the Condensed Consolidated Balance Sheet. Changes in the vehicle floor plan payable are reported as cash flows from financing activities in the Condensed Consolidated Statements of Cash Flows. The floor plan facility is collateralized by vehicle inventory and other assets of the relevant dealership subsidiary, and contains a number of covenants, including, among others, covenants restricting the dealership subsidiary with respect to the creation of liens and changes in ownership, officers and key management personnel. The Company was in compliance with all of these restrictive covenants as of September 30, 2019 . The floor plan interest expense related to the new vehicle floor plan arrangements is offset by amounts received from manufacturers in the form of floor plan assistance capitalized in inventory and recorded against operating expense in the Condensed Consolidated Statements of Operations when the associated inventory is sold. For the three and nine months ended September 30, 2019 , the Company recognized a reduction in operating expense of $0.4 million and $1.6 million , respectively, related to manufacturer floor plan assistance. |
Leases
Leases | 9 Months Ended |
Sep. 30, 2019 | |
Leases [Abstract] | |
Leases | LEASES The Company has operating leases for substantially all of its educational facilities, corporate offices and other facilities used in conducting its business, as well as certain equipment. The Company determines if an arrangement is a lease at inception. Operating leases are included in lease right-of-use (“ROU”) assets, current portion of lease liabilities, and lease liabilities on the Company’s Condensed Consolidated Balance Sheets. ROU assets represent the Company’s right to use an underlying asset for the lease term and lease liabilities represent the Company’s obligation to make lease payments arising from the lease. Operating lease ROU assets and liabilities are recognized at the lease commencement date based on the present value of lease payments over the lease term. ROU assets also include any initial direct costs, prepaid lease payments and lease incentives received, when applicable. As most of the Company’s leases do not provide an implicit rate, the Company used its incremental borrowing rate based on the information available at the lease commencement date in determining the present value of lease payments. The Company used the incremental borrowing rate on December 31, 2018 for operating leases that commenced prior to that date. The Company’s lease terms may include options to extend or terminate the lease by one to 10 years or more when it is reasonably certain that the option will be exercised. Leases with a term of twelve months or less are not recorded on the balance sheet; however, lease expense for these leases is recognized on a straight-line basis. The Company has elected the practical expedient to not separate lease components from nonlease components. As such, lease expense includes these nonlease components, when applicable. Fixed lease expense is recognized on a straight-line basis over the lease term. Variable lease expense is recognized when incurred. The Company’s lease agreements do not contain any significant residual value guarantees or restrictive covenants. In some instances, the Company subleases its leased real estate facilities to third parties. The Company does not have significant financing leases. The components of lease expense were as follows: (in thousands) Three Months Ended September 30, 2019 Nine Months Ended September 30, 2019 Operating lease cost $ 26,242 $ 75,531 Short-term and month-to-month lease cost 4,502 14,275 Variable lease cost 5,601 15,563 Sublease income (5,222 ) (14,915 ) Total net lease cost $ 31,123 $ 90,454 In connection with the sale of the KHE Campuses business, the Company is the guarantor of several leases for which it has established ROU assets and lease liabilities (see Note 15). Any net lease cost or sublease income related to these leases is recorded in other non-operating income. Due to an early lease termination, the Company recorded a $0.1 million gain related to these leases for the three months ended September 30, 2019 . The total net lease cost related to these leases was $0.5 million for the nine months ended September 30, 2019 . Supplemental information related to leases was as follows: (in thousands) Nine Months Ended September 30, 2019 Cash Flow Information: Operating cash flows from operating leases (payments) $ 88,369 Right-of-use assets obtained in exchange for new operating lease liabilities (noncash) 205,455 As of September 30, 2019 Balance Sheet Information: Lease right-of-use assets $ 503,830 Current lease liabilities $ 78,114 Noncurrent lease liabilities 462,868 Total lease liabilities $ 540,982 Weighted average remaining lease term (years) 10.8 Weighted average discount rate 4.3 % Maturities of lease liabilities were as follows: (in thousands) September 30, 2019 2019 $ 20,271 2020 103,515 2021 86,245 2022 71,147 2023 62,384 Thereafter 358,758 Total payments 702,320 Less: Imputed interest (161,338 ) Total $ 540,982 As of September 30, 2019 , the Company has entered into operating leases, including educational and other facilities, that have not yet commenced that have minimum lease payments of $3.9 million . These operating leases will commence in fiscal years 2019 and 2020 with lease terms of one to 12 years . Disclosure related to periods prior to the adoption of new lease accounting guidance At December 31, 2018, future minimum rental payments under noncancelable operating leases approximate the following: (in thousands) December 31, 2018 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. |
Goodwill and Other Intangible A
Goodwill and Other Intangible Assets | 9 Months Ended |
Sep. 30, 2019 | |
Goodwill and Intangible Assets Disclosure [Abstract] | |
Goodwill and Other Intangible Assets | GOODWILL AND OTHER INTANGIBLE ASSETS The Company changed the presentation of its segments in the third quarter of 2019 into the following eight reportable segments: Kaplan International, Higher Education, Test Preparation, Professional (U.S.), Television Broadcasting, Manufacturing, Healthcare and SocialCode (see Note 16). In the third quarter of 2018, the Healthcare business recorded an intangible asset impairment charge of $7.9 million following the decision to discontinue the use of the Celtic tradename. The fair value of the intangible asset was estimated using an income approach. Amortization of intangible assets for the three months ended September 30, 2019 and 2018 was $13.6 million and $12.3 million , respectively. Amortization of intangible assets for the nine months ended September 30, 2019 and 2018 was $39.5 million and $34.1 million , respectively. Amortization of intangible assets is estimated to be approximately $14 million for the remainder of 2019 , $53 million in 2020 , $47 million in 2021 , $41 million in 2022 , $33 million in 2023 and $57 million thereafter. The changes in the carrying amount of goodwill, by segment, were as follows: (in thousands) Education Television Broadcasting Manufacturing Healthcare SocialCode Other Businesses Total Balance as of December 31, 2018 Goodwill $ 1,128,699 $ 190,815 $ 231,479 $ 69,626 $ 15,860 $ 7,685 $ 1,644,164 Accumulated impairment losses (331,151 ) — (7,616 ) — — (7,685 ) (346,452 ) 797,548 190,815 223,863 69,626 15,860 — 1,297,712 Acquisitions 6,391 — 2,714 8,283 — 45,999 63,387 Foreign currency exchange rate changes (15,706 ) — — — — — (15,706 ) Balance as of September 30, 2019 Goodwill 1,119,384 190,815 234,193 77,909 15,860 53,684 1,691,845 Accumulated impairment losses (331,151 ) — (7,616 ) — — (7,685 ) (346,452 ) $ 788,233 $ 190,815 $ 226,577 $ 77,909 $ 15,860 $ 45,999 $ 1,345,393 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 Balance 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 Acquisitions 6,391 — — — 6,391 Foreign currency exchange rate changes (15,760 ) — — 54 (15,706 ) Balance as of September 30, 2019 Goodwill 574,055 174,564 166,920 203,845 1,119,384 Accumulated impairment losses — (111,324 ) (102,259 ) (117,568 ) (331,151 ) $ 574,055 $ 63,240 $ 64,661 $ 86,277 $ 788,233 Other intangible assets consist of the following: As of September 30, 2019 As of December 31, 2018 (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 $ 291,662 $ 136,319 $ 155,343 $ 282,761 $ 114,429 $ 168,332 Trade names and trademarks 2–10 years 92,568 46,204 46,364 87,285 39,825 47,460 Network affiliation agreements 10 years 17,400 4,712 12,688 17,400 3,408 13,992 Databases and technology 3–6 years 30,274 12,221 18,053 27,041 8,471 18,570 Noncompete agreements 2–5 years 1,353 931 422 1,088 838 250 Other 1–8 years 24,890 12,367 12,523 24,530 9,873 14,657 $ 458,147 $ 212,754 $ 245,393 $ 440,105 $ 176,844 $ 263,261 Indefinite-Lived Intangible Assets Trade names and trademarks $ 97,527 $ 80,102 Franchise agreements 28,000 — FCC licenses 18,800 18,800 Licensure and accreditation 150 150 $ 144,477 $ 99,052 |
Debt
Debt | 9 Months Ended |
Sep. 30, 2019 | |
Debt Disclosure [Abstract] | |
Debt | DEBT The Company’s borrowings consist of the following: As of September 30, December 31, (in thousands) 5.75% unsecured notes due June 1, 2026 (1) $ 395,212 $ 394,675 U.K. credit facility (2) 73,683 82,366 Commercial note 28,250 — USD revolving credit facility 5,000 — Other indebtedness 87 96 Total Debt $ 502,232 $ 477,137 Less: current portion (81,697 ) (6,360 ) Total Long-Term Debt $ 420,535 $ 470,777 ___________ _ (1) The carrying value is net of $4.8 million and $5.3 million of unamortized debt issuance costs as of September 30, 2019 and December 31, 2018 , respectively. (2) The carrying value is net of $0.1 million and $0.2 million of unamortized debt issuance costs as of September 30, 2019 and December 31, 2018 , respectively. As of September 30, 2019, there was $5.0 million outstanding under the Company’s revolving credit facility at an interest rate of 5.5% ; this was fully repaid on October 1, 2019. The Company’s other indebtedness at September 30, 2019 and December 31, 2018 is at an interest rate of 2% and matures in 2026 . On January 31, 2019, the Company’s automotive subsidiary entered into a Commercial Note with SunTrust Bank in an aggregate principal amount of $30 million . The Commercial Note is payable over a 10 year period in monthly installments of $0.25 million , plus accrued and unpaid interest, due on the first of each month, with a final payment on January 31, 2029. The Commercial Note bears interest at LIBOR plus an applicable interest rate of 1.75% or 2% per annum, in each case determined on a quarterly basis based upon the automotive subsidiary’s Adjusted Leverage Ratio. The Commercial Note contains terms and conditions, including remedies in the event of a default by the automotive subsidiary. On the same date, the Company’s automotive subsidiary entered into an interest rate swap agreement with a total notional value of $30 million and a maturity date of January 31, 2029. The interest rate swap agreement will pay the automotive subsidiary variable interest on the $30 million notional amount at the one-month LIBOR, and the automotive subsidiary will pay counterparties a fixed rate of 2.7% , effectively resulting in a total fixed interest rate of 4.7% on the outstanding borrowings at the current applicable margin of 2.0% . The interest rate swap agreement was entered into to convert the variable rate borrowing under the Commercial Note into a fixed rate borrowing. Based on the terms of the interest rate swap agreement and the underlying borrowing, the interest rate swap 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 Condensed Consolidated Balance Sheets until earnings are affected by the variability of cash flows. 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. The Company is in compliance with all financial covenants as of September 30, 2019 . During the three months ended September 30, 2019 and 2018 , the Company had average borrowings outstanding of approximately $501.1 million and $480.6 million , respectively, at average annual interest rates of approximately 5.1% . During the three months ended September 30, 2019 and 2018 , the Company incurred net interest expense of $5.3 million and $5.5 million , respectively. During the nine months ended September 30, 2019 and 2018 , the Company had average borrowings outstanding of approximately $499.7 million and $529.2 million , respectively, at average annual interest rates of approximately 5.1% and 5.7% , respectively. During the nine months ended September 30, 2019 and 2018 , the Company incurred net interest expense of $17.8 million and $27.5 million , 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 2). The fair value of the mandatorily redeemable noncontrolling interest is based on the redemption value resulting from a negotiated settlement. At September 30, 2019 , the fair value of the Company’s 5.75% unsecured notes, based on quoted market prices (Level 2 fair value assessment), totaled $432.3 million , compared with the carrying amount of $395.2 million . 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 . The carrying value of the Company’s other unsecured debt at September 30, 2019 and December 31, 2018 approximates fair value. |
Fair Value Measurements
Fair Value Measurements | 9 Months Ended |
Sep. 30, 2019 | |
Fair Value Disclosures [Abstract] | |
Fair Value Measurements | FAIR VALUE MEASUREMENTS The Company’s financial assets and liabilities measured at fair value on a recurring basis were as follows: As of September 30, 2019 (in thousands) Level 1 Level 2 Total Assets Marketable equity securities (1) $ 535,564 $ — $ 535,564 Other current investments (2) 13,601 5,045 18,646 Interest rate swap (3) — 162 162 Total Financial Assets $ 549,165 $ 5,207 $ 554,372 Liabilities Deferred compensation plan liabilities (4) $ — $ 33,195 $ 33,195 Interest rate swap (5) — 706 706 Total Financial Liabilities $ — $ 33,901 $ 33,901 As of December 31, 2018 (in thousands) Level 1 Level 2 Total Assets Money market investments (6) $ — $ 75,500 $ 75,500 Marketable equity securities (1) 496,390 — 496,390 Other current investments (2) 11,203 6,988 18,191 Interest rate swap (3) — 369 369 Total Financial Assets $ 507,593 $ 82,857 $ 590,450 Liabilities Deferred compensation plan liabilities (4) $ — $ 36,080 $ 36,080 ____________ (1) 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. (2) 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. (3) Included in Other Current 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. (4) 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. (5) 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. (6) The Company’s money market investments are included in Cash and Cash Equivalents and the value considers the liquidity of the counterparty. During the three and nine months ended September 30, 2019, the Company recorded other long-lived asset impairment charges of $0.4 million and $1.1 million , respectively. In the third quarter of 2018, the Company recorded an other long-lived asset impairment charges of $8.1 million . The remeasurement of 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 other long-lived assets and made estimates and assumptions regarding future cash flows and discount rates. During the three and nine months ended September 30, 2019, the Company recorded gains of $3.7 million and $5.1 million , respectively, to equity securities that are accounted for as cost method investments based on observable transactions. During the three and nine months ended September 30, 2018, the Company recorded gains of $8.5 million to equity securities that are accounted for as cost method investments based on observable transactions. |
Revenue from Contracts with Cus
Revenue from Contracts with Customers | 9 Months Ended |
Sep. 30, 2019 | |
Revenue from Contract with Customer [Abstract] | |
Revenue from Contracts with Customers | REVENUE FROM CONTRACTS WITH CUSTOMERS The Company generated 79% and 77% of its revenue from U.S. domestic sales for the three and nine months ended September 30, 2019 , respectively. The remaining 21% and 23% of revenue was generated from non-U.S. sales for the three and nine months ended September 30, 2019 , respectively. For the three and nine months ended September 30, 2018 , 78% and 76% of revenue was from U.S. domestic sales, respectively. The remaining 22% and 24% was generated from non-U.S. sales in the three and nine months ended September 30, 2018 , respectively. For the three months ended September 30, 2019 , the Company recognized 70% of its revenue over time as control of the services and goods transferred to the customer, and 30% at a point in time, when the customer obtained control of the promised goods. For the nine months ended September 30, 2019 , the Company recognized 74% of its revenue over time, and 26% at a point in time. For the three and nine months ended September 30, 2018 , the Company recognized 80% of its revenue over time, and the remaining 20% at a point in time. 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: As of September 30, December 31, % (in thousands) Change Deferred revenue $ 341,682 $ 311,214 10 The majority of the change in the deferred revenue balance is related to the cyclical nature of services at the Kaplan international division. During the nine months ended September 30, 2019 , the Company recognized $254.4 million related to the Company’s deferred revenue balance as of December 31, 2018 . Revenue allocated to remaining performance obligations represents deferred revenue amounts that will be recognized as revenue in future periods. As of September 30, 2019 , KTP’s deferred revenue balance related to certain medical and nursing qualifications with an original contract length greater than twelve months was $8.9 million . KTP expects to recognize 66% 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: (in thousands) Balance at Beginning of Period Costs associated with new contracts Less: Costs amortized during the period Other Balance at End of Period 2019 $ 21,311 $ 29,381 $ (34,729 ) $ (312 ) $ 15,651 The majority of other activity is related to currency translation adjustments during the nine months ended September 30, 2019 . Amortization expense for costs to obtain a contract was $9.2 million for the three months ended September 30, 2019 . |
Earnings Per Share
Earnings Per Share | 9 Months Ended |
Sep. 30, 2019 | |
Earnings Per Share [Abstract] | |
Earnings Per Share | 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 the earnings per share under the two-class method excludes the income attributable to the unvested restricted stock awards from the numerator and excludes the dilutive impact of those underlying shares from the denominator. The following reflects the Company’s net income and share data used in the basic and diluted earnings per share computations using the two-class method: Three Months Ended Nine Months Ended (in thousands, except per share amounts) 2019 2018 2019 2018 Numerator: Numerator for basic earnings per share: Net income attributable to Graham Holdings Company common stockholders $ 43,145 $ 125,064 $ 181,974 $ 214,521 Less: Dividends paid-common stock outstanding and unvested restricted shares (7,386 ) (7,048 ) (29,554 ) (28,635 ) Undistributed earnings 35,759 118,016 152,420 185,886 Percent allocated to common stockholders 99.44 % 99.34 % 99.44 % 99.34 % 35,559 117,235 151,570 184,657 Add: Dividends paid-common stock outstanding 7,345 7,001 29,389 28,447 Numerator for basic earnings per share $ 42,904 $ 124,236 $ 180,959 $ 213,104 Add: Additional undistributed earnings due to dilutive stock options 2 5 7 8 Numerator for diluted earnings per share $ 42,906 $ 124,241 $ 180,966 $ 213,112 Denominator: Denominator for basic earnings per share: Weighted average shares outstanding 5,285 5,302 5,285 5,354 Add: Effect of dilutive stock options 44 35 43 36 Denominator for diluted earnings per share 5,329 5,337 5,328 5,390 Graham Holdings Company Common Stockholders: Basic earnings per share $ 8.12 $ 23.43 $ 34.24 $ 39.81 Diluted earnings per share $ 8.05 $ 23.28 $ 33.96 $ 39.54 Diluted earnings per share excludes the following weighted average potential common shares, as the effect would be antidilutive, as computed under the treasury stock method: Three Months Ended Nine Months Ended (in thousands) 2019 2018 2019 2018 Weighted average restricted stock 14 21 12 23 The diluted earnings per share amounts for the three and nine months ended September 30, 2019 and September 30, 2018 exclude the effects of 104,000 stock options outstanding, as their inclusion would have been antidilutive due to a market condition. The diluted earnings per share amounts for the three and nine months ended September 30, 2018 exclude the effects of 5,250 restricted stock awards as their inclusion would have been antidilutive due to a performance condition. In the three and nine months ended September 30, 2019 , the Company declared regular dividends totaling $1.39 and $5.56 per common share, respectively. In the three and nine months ended September 30, 2018 , the Company declared regular dividends totaling $1.33 and $5.32 per common share, respectively. |
Pension and Postretirement Plan
Pension and Postretirement Plans | 9 Months Ended |
Sep. 30, 2019 | |
Retirement Benefits, Description [Abstract] | |
Pension and Postretirement Plans | PENSION AND POSTRETIREMENT PLANS 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, net on the Condensed Consolidated Statement of Operations. Defined Benefit Plans. The total benefit arising from the Company’s defined benefit pension plans consists of the following components: Three Months Ended September 30 Nine Months Ended September 30 (in thousands) 2019 2018 2019 2018 Service cost $ 5,142 $ 4,473 $ 15,326 $ 13,730 Interest cost 11,743 11,844 35,078 34,943 Expected return on assets (30,832 ) (31,969 ) (91,955 ) (97,251 ) Amortization of prior service cost 824 36 2,058 114 Recognized actuarial gain — (2,974 ) — (6,994 ) Net Periodic Benefit (13,123 ) (18,590 ) (39,493 ) (55,458 ) Curtailment gain — — — (806 ) Special separation benefit expense (175 ) — 6,432 — Total Benefit $ (13,298 ) $ (18,590 ) $ (33,061 ) $ (56,264 ) In the second quarter of 2019, the Company offered a Separation Incentive Program (SIP) for certain Kaplan employees, which was funded from the assets of the Company’s pension plan. The Company recorded $6.4 million in expense related to the SIP for the nine months ended September 30, 2019. The total cost arising from the Company’s Supplemental Executive Retirement Plan (SERP) consists of the following components: Three Months Ended September 30 Nine Months Ended September 30 (in thousands) 2019 2018 2019 2018 Service cost $ 214 $ 205 $ 643 $ 614 Interest cost 1,079 967 3,236 2,899 Amortization of prior service cost 85 77 254 233 Recognized actuarial loss 579 600 1,736 1,802 Net Periodic Cost $ 1,957 $ 1,849 $ 5,869 $ 5,548 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 plan were allocated as follows: As of September 30, December 31, U.S. equities 55 % 53 % U.S. stock index fund 21 % 28 % U.S. fixed income 17 % 13 % International equities 7 % 6 % 100 % 100 % The Company manages approximately 44% 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 56% of plan assets are managed by two investment companies. The goal for the investments 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. One investment manager cannot invest more than 15% of the assets at the time of purchase in the stock of Alphabet and Berkshire Hathaway, no more than 30% of the assets it manages in specified international exchanges at the time the investment is made, and no less than 5% of the assets could be invested in fixed-income securities. The other investment manager cannot invest more than 20% of the assets at the time of purchase in the stock of Berkshire Hathaway, no more than 15% of the assets it manages 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. Excluding the exceptions noted above, the investment managers cannot invest 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. In determining the expected rate of return on plan assets, the Company considers the relative weighting of plan assets, the historical performance of total plan assets and individual asset classes and economic and other indicators of future performance. In addition, the Company may consult with and consider the input of financial and other professionals in developing appropriate return benchmarks. The Company evaluated its defined benefit pension plan asset portfolio for the existence of significant concentrations (defined as greater than 10% of plan assets) of credit risk as of September 30, 2019 . Types of concentrations that were evaluated include, but are not limited to, investment concentrations in a single entity, type of industry, foreign country and individual fund. At September 30, 2019 and December 31, 2018 , 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 $853.3 million and $945.6 million at September 30, 2019 and December 31, 2018 , respectively, or approximately 35% and 45% , respectively, of total plan assets. Other Postretirement Plans. The total cost arising from the Company’s other postretirement plans consists of the following components: Three Months Ended September 30 Nine Months Ended September 30 (in thousands) 2019 2018 2019 2018 Service cost $ — $ 267 $ — $ 803 Interest cost 72 170 216 509 Amortization of prior service credit (1,841 ) (44 ) (5,522 ) (132 ) Recognized actuarial gain (1,090 ) (921 ) (3,270 ) (2,764 ) Net Periodic Benefit $ (2,859 ) $ (528 ) $ (8,576 ) $ (1,584 ) |
Other Non-Operating Income
Other Non-Operating Income | 9 Months Ended |
Sep. 30, 2019 | |
Other Nonoperating Income (Expense) [Abstract] | |
Other Non-Operating Income | OTHER NON-OPERATING INCOME A summary of non-operating income is as follows: Three Months Ended Nine Months Ended (in thousands) 2019 2018 2019 2018 Gain on sale of an equity affiliate $ — $ — $ 28,994 $ — Gain on cost method investments 3,669 8,487 5,080 8,487 Foreign currency gain (loss), net 661 (116 ) 1,284 (2,205 ) Impairment of a cost method investment — (2,500 ) — (2,500 ) Gain on sales of businesses 486 916 907 8,157 Gain on sale of cost method investments 259 — 259 2,845 (Loss) gain on sale of property, plant and equipment (38 ) — (82 ) 2,542 Other gain (loss), net 519 (3,645 ) (307 ) (2,664 ) Total Other Non-Operating Income $ 5,556 $ 3,142 $ 36,135 $ 14,662 In the third quarter of 2019, the Company recorded a $3.7 million gain resulting from observable price changes in the fair value of equity securities accounted for under the cost method. In the first quarter of 2019, the Company recorded a $1.3 million gain resulting from observable price changes in the fair value of equity securities accounted for under the cost method. In the first quarter of 2019, the Company recorded a $29.0 million gain on the sale of the Company’s interest in Gimlet Media. 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 first nine months of 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 a $1.9 million in contingent consideration gains related to the sale of a business (see Note 2). |
Accumulated Other Comprehensive
Accumulated Other Comprehensive Income (Loss) | 9 Months Ended |
Sep. 30, 2019 | |
Accumulated Other Comprehensive Income (Loss), Net of Tax [Abstract] | |
Accumulated Other Comprehensive Income (Loss) | ACCUMULATED OTHER COMPREHENSIVE INCOME (LOSS) The other comprehensive loss consists of the following components: Three Months Ended September 30 2019 2018 Before-Tax Income After-Tax Before-Tax Income After-Tax (in thousands) Amount Tax Amount Amount Tax Amount Foreign currency translation adjustments: Translation adjustments arising during the period $ (16,684 ) $ — $ (16,684 ) $ (2,844 ) $ — $ (2,844 ) Pension and other postretirement plans: Amortization of net prior service (credit) cost included in net income (932 ) 252 (680 ) 69 (18 ) 51 Amortization of net actuarial gain included in net income (511 ) 138 (373 ) (3,295 ) 891 (2,404 ) (1,443 ) 390 (1,053 ) (3,226 ) 873 (2,353 ) Cash flow hedges: Loss for the period (477 ) 128 (349 ) (6 ) 1 (5 ) Other Comprehensive Loss $ (18,604 ) $ 518 $ (18,086 ) $ (6,076 ) $ 874 $ (5,202 ) Nine Months Ended September 30 2019 2018 Before-Tax Income After-Tax Before-Tax Income After-Tax (in thousands) Amount Tax Amount Amount Tax Amount Foreign currency translation adjustments: Translation adjustments arising during the period $ (17,755 ) $ — $ (17,755 ) $ (22,447 ) $ — $ (22,447 ) Pension and other postretirement plans: Amortization of net prior service (credit) cost included in net income (3,210 ) 867 (2,343 ) 215 (58 ) 157 Amortization of net actuarial gain included in net income (1,534 ) 414 (1,120 ) (7,956 ) 2,148 (5,808 ) (4,744 ) 1,281 (3,463 ) (7,741 ) 2,090 (5,651 ) Cash flow hedges: (Loss) gain for the period (904 ) 231 (673 ) 601 (114 ) 487 Other Comprehensive Loss $ (23,403 ) $ 1,512 $ (21,891 ) $ (29,587 ) $ 1,976 $ (27,611 ) 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 Pensions and Other Postretirement Plans Cash Flow Hedges Accumulated Other Comprehensive Income Balance as of December 31, 2018 $ (29,270 ) $ 232,836 $ 263 $ 203,829 Other comprehensive loss before reclassifications (17,755 ) — (562 ) (18,317 ) Net amount reclassified from accumulated other comprehensive income (loss) — (3,463 ) (111 ) (3,574 ) Other comprehensive loss, net of tax (17,755 ) (3,463 ) (673 ) (21,891 ) Balance as of September 30, 2019 $ (47,025 ) $ 229,373 $ (410 ) $ 181,938 The amounts and line items of reclassifications out of Accumulated Other Comprehensive Income (Loss) are as follows: Three Months Ended Nine Months Ended Affected Line Item in the Condensed Consolidated Statements of Operations (in thousands) 2019 2018 2019 2018 Pension and Other Postretirement Plans: Amortization of net prior service (credit) cost $ (932 ) $ 69 $ (3,210 ) $ 215 (1) Amortization of net actuarial gain (511 ) (3,295 ) (1,534 ) (7,956 ) (1) (1,443 ) (3,226 ) (4,744 ) (7,741 ) Before tax 390 873 1,281 2,090 Provision for Income Taxes (1,053 ) (2,353 ) (3,463 ) (5,651 ) Net of Tax Cash Flow Hedges (24 ) (59 ) (151 ) (101 ) Interest expense 11 11 40 19 Provision for Income Taxes (13 ) (48 ) (111 ) (82 ) Net of Tax Total reclassification for the period $ (1,066 ) $ (2,401 ) $ (3,574 ) $ (5,733 ) Net of Tax ____________ (1) These accumulated other comprehensive income components are components of net periodic pension and postretirement plan cost (see Note 12) and are included in non-operating pension and postretirement benefit income in the Company’s Condensed Consolidated Statements of Operations. |
Contingencies and Regulatory Ma
Contingencies and Regulatory Matters | 9 Months Ended |
Sep. 30, 2019 | |
Commitments and Contingencies Disclosure [Abstract] | |
Contingencies and Regulatory Matters | CONTINGENCIES AND REGULATORY MATTERS 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 and invasion of privacy; trademark, copyright and patent infringement; violations of 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 $15 million . 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, has terminated all of its higher education operations and has sold the New England College of Business (NECB). The receiver has repudiated all of ECA’s real estate leases. 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. The Company continues to monitor the status of these obligations and there was no significant change to estimated losses in the first nine months of 2019. 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 years 2014 to 2017, 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 is entitled to recover the £17.3 million receivable related to the assessments and subsequent payments that have been paid through September 30, 2019. 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. In the third quarter of 2019, the Company has recorded a full provision of £17.3 million against this receivable to expense, due to recent developments in the case. Of this amount, £14.1 million relates to years 2014 to 2018. If the Company ultimately prevails in this case, the provision will be reversed and a pre-tax credit will be recorded as a reduction to expense in the Company’s Condensed Consolidated Statement of Operations. The result of the case is expected to be known by the end of 2020. In a separate matter, there was a legal case awaiting judgment at the Supreme Court in the U.K. as of December 31, 2018 that could have impacted U.K. Pathways’ ability to receive the benefit of an exemption from charging its students VAT on tuition fees. The case could have reversed or amended the law and guidance permitting 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. However the Supreme Court decided the case in the college’s favor. The result was more favorable to private providers working in collaboration with a university than the opposing view. The Supreme Court emphasized five key tests for a private provider to satisfy so that it could exempt its services as a “college of a university”, even if it did not have a constitutional link to the university. Satisfying these tests would generally show that the college had a sufficiently close relationship with the university and its activities were sufficiently integrated with the university, to constitute a “college of a university”. Although the new test has now been incorporated into official HMRC guidance, it is not yet clear how HMRC will apply the Supreme Court judgment and the five key tests in practice. Department of Education (ED) Program Reviews. The ED has undertaken program reviews at various KHE locations. In February 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 retained 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. In September 2018, the ED issued a Preliminary Program Report (Preliminary Report) and none of the initial findings in the Preliminary Report carried 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. In August 2019, the ED issued a Final Program Report, with a nominal financial liability. There were two other open program reviews at campuses that were part of the KHE Campuses business prior to its sale in 2015 to ECA. The ED’s reports on the program reviews at former KHE Broomall, PA, and Pittsburgh, PA, locations were recently finalized with no additional financial obligation. Regulatory Matters. In November 2018, Kaplan Learning Institute in Singapore (KLI) was notified by SkillsFuture Singapore (SSG), a statutory board under the Singapore Ministry of Education, that its right to deliver workforce skills qualifications (WSQ) courses under the Leadership & People Management framework would be suspended for six months from December 1, 2018. In June 2019, SSG notified KLI that from July 1, 2019, SSG was suspending KLI’s WSQ Approved Training Organization status for twelve months and terminating its WSQ course accreditation and funding due to findings of non-compliance with WSQ assessment principles. Kaplan Singapore has subsequently begun the process of voluntarily de-registering KLI as a Private Education institution. These actions have and will continue to adversely impact Kaplan Singapore’s revenues and operating results for 2019, as compared to 2018. |
Business Segments
Business Segments | 9 Months Ended |
Sep. 30, 2019 | |
Segment Reporting [Abstract] | |
Business Segments | BUSINESS SEGMENTS The Company changed the presentation of its segments in the third quarter of 2019 into the following eight reportable segments: Kaplan International, Kaplan Higher Education, Kaplan Test Preparation, Kaplan Professional (U.S.), Television Broadcasting, Manufacturing, Healthcare, and SocialCode. The following tables summarize the financial information related to each of the Company’s business segments: Three Months Ended March 31, June 30, September 30, (in thousands) 2019 2019 2019 Operating Revenues Education $ 372,454 $ 367,763 $ 357,319 Television broadcasting 108,223 116,628 115,161 Manufacturing 115,157 114,873 111,676 Healthcare 37,728 40,641 40,688 SocialCode 13,447 16,382 15,975 Other businesses 45,230 81,359 98,225 Corporate office — — — Intersegment elimination (40 ) (44 ) (224 ) $ 692,199 $ 737,602 $ 738,820 Income (Loss) from Operations Education $ 25,595 $ 26,305 $ (7,161 ) Television broadcasting 35,540 44,494 36,813 Manufacturing 3,274 4,692 6,845 Healthcare 2,329 2,598 1,208 SocialCode (4,018 ) (975 ) (378 ) Other businesses (8,493 ) (5,913 ) (9,029 ) Corporate office (14,224 ) (13,238 ) (12,030 ) $ 40,003 $ 57,963 $ 16,268 Equity in Earnings of Affiliates, Net 1,679 1,467 4,683 Interest Expense, Net (5,725 ) (6,807 ) (5,302 ) Non-Operating Pension and Postretirement Benefit Income, Net 19,928 12,253 19,556 Gain on Marketable Equity Securities, Net 24,066 7,791 17,404 Other Income, Net 29,351 1,228 5,556 Income Before Income Taxes $ 109,302 $ 73,895 $ 58,165 Depreciation of Property, Plant and Equipment Education $ 6,201 $ 6,137 $ 6,258 Television broadcasting 3,239 3,293 3,307 Manufacturing 2,433 2,384 2,671 Healthcare 610 607 566 SocialCode 152 384 356 Other businesses 648 837 1,974 Corporate office 240 242 219 $ 13,523 $ 13,884 $ 15,351 Amortization of Intangible Assets and Impairment of Long-Lived Assets Education $ 3,567 $ 4,070 $ 3,944 Television broadcasting 1,408 1,408 1,408 Manufacturing 6,530 6,528 6,522 Healthcare 1,398 1,410 1,914 SocialCode 157 157 156 Other businesses — — — Corporate office — — — $ 13,060 $ 13,573 $ 13,944 Pension Service Cost Education $ 2,664 $ 2,522 $ 2,603 Television broadcasting 731 780 762 Manufacturing 25 15 20 Healthcare 183 63 123 SocialCode 248 191 219 Other businesses 201 161 215 Corporate office 1,169 1,231 1,200 $ 5,221 $ 4,963 $ 5,142 Three Months Ended March 31, June 30, September 30, December 31, (in thousands) 2018 2018 2018 2018 Operating Revenues Education $ 375,499 $ 370,005 $ 358,601 $ 346,910 Television broadcasting 108,802 114,086 130,014 152,647 Manufacturing 117,406 126,462 126,028 117,723 Healthcare 37,621 38,208 35,486 37,960 SocialCode 13,299 14,770 13,781 16,878 Other businesses 6,833 9,167 10,856 17,024 Corporate office — — — — Intersegment elimination (24 ) (21 ) — (55 ) $ 659,436 $ 672,677 $ 674,766 $ 689,087 Income (Loss) from Operations Education $ 22,700 $ 37,554 $ 22,262 $ 14,620 Television broadcasting 40,542 41,118 55,453 73,420 Manufacturing 8,628 8,665 5,146 6,412 Healthcare (1,391 ) 764 (8,702 ) 928 SocialCode (3,781 ) (1,742 ) 5,124 (682 ) Other businesses (8,542 ) (7,977 ) (5,657 ) (5,840 ) Corporate office (13,942 ) (12,756 ) (12,887 ) (13,276 ) $ 44,214 $ 65,626 $ 60,739 $ 75,582 Equity in Earnings of Affiliates, Net 2,579 931 9,537 1,426 Interest Expense, Net (6,699 ) (15,264 ) (5,524 ) (5,062 ) Debt Extinguishment Costs — (11,378 ) — — Non-Operating Pension and Postretirement Benefit Income 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 (Loss), Net 9,187 2,333 3,142 (12,559 ) Income from Continuing Operations Before Income Taxes $ 56,565 $ 62,735 $ 135,070 $ 69,138 Depreciation of Property, Plant and Equipment Education $ 7,606 $ 6,839 $ 6,685 $ 6,969 Television broadcasting 3,071 2,974 3,198 3,961 Manufacturing 2,451 2,331 2,333 2,400 Healthcare 653 647 648 629 SocialCode 233 200 187 177 Other businesses 375 375 345 428 Corporate office 253 253 252 249 $ 14,642 $ 13,619 $ 13,648 $ 14,813 Amortization of Intangible Assets and Impairment of Long-lived Assets Education $ 1,149 $ 1,663 $ 2,682 $ 3,868 Television broadcasting 1,408 1,408 1,408 1,408 Manufacturing 5,936 5,935 6,345 6,530 Healthcare 1,808 1,809 9,839 1,399 SocialCode 83 584 104 157 Other businesses — — — — Corporate office — — — — $ 10,384 $ 11,399 $ 20,378 $ 13,362 Pension Service Cost Education $ 2,664 $ 1,878 $ 2,107 $ 2,104 Television broadcasting 493 601 544 550 Manufacturing 17 19 18 18 Healthcare 122 165 143 143 SocialCode 156 205 181 181 Other businesses 116 154 147 161 Corporate office 1,372 1,295 1,333 1,334 $ 4,940 $ 4,317 $ 4,473 $ 4,491 Nine months ended Year Ended September 30 December 31 (in thousands) 2019 2018 2018 2017 Operating Revenues Education $ 1,097,536 $ 1,104,105 $ 1,451,015 $ 1,516,776 Television broadcasting 340,012 352,902 505,549 409,916 Manufacturing 341,706 369,896 487,619 414,193 Healthcare 119,057 111,315 149,275 154,202 SocialCode 45,804 41,850 58,728 62,077 Other businesses 224,814 26,856 43,880 34,733 Corporate office — — — — Intersegment elimination (308 ) (45 ) (100 ) (51 ) $ 2,168,621 $ 2,006,879 $ 2,695,966 $ 2,591,846 Income (Loss) from Operations Education $ 44,739 $ 82,516 $ 97,136 $ 77,687 Television broadcasting 116,847 137,113 210,533 139,258 Manufacturing 14,811 22,439 28,851 14,947 Healthcare 6,135 (9,329 ) (8,401 ) (2,569 ) SocialCode (5,371 ) (399 ) (1,081 ) (3,674 ) Other businesses (23,435 ) (22,176 ) (28,016 ) (30,536 ) Corporate office (39,492 ) (39,585 ) (52,861 ) (58,710 ) $ 114,234 $ 170,579 $ 246,161 $ 136,403 Equity in Earnings (Losses) of Affiliates, Net 7,829 13,047 14,473 (3,249 ) Interest Expense, Net (17,834 ) (27,487 ) (32,549 ) (27,305 ) Debt Extinguishment Costs — (11,378 ) (11,378 ) — Non-Operating Pension and Postretirement Benefit Income, Net 51,737 66,641 120,541 72,699 Gain (Loss) on Marketable Equity Securities, Net 49,261 28,306 (15,843 ) — Other Income, Net 36,135 14,662 2,103 4,241 Income Before Income Taxes $ 241,362 $ 254,370 $ 323,508 $ 182,789 Depreciation of Property, Plant and Equipment Education $ 18,596 $ 21,130 $ 28,099 $ 32,906 Television broadcasting 9,839 9,243 13,204 12,179 Manufacturing 7,488 7,115 9,515 9,173 Healthcare 1,783 1,948 2,577 4,583 SocialCode 892 620 797 1,004 Other businesses 3,459 1,095 1,523 1,546 Corporate office 701 758 1,007 1,118 $ 42,758 $ 41,909 $ 56,722 $ 62,509 Amortization of Intangible Assets and Impairment of Goodwill and Other Long-Lived Assets Education $ 11,581 $ 5,494 $ 9,362 $ 5,162 Television broadcasting 4,224 4,224 5,632 6,349 Manufacturing 19,580 18,216 24,746 31,052 Healthcare 4,722 13,456 14,855 7,905 SocialCode 470 771 928 333 Other businesses — — — — Corporate office — — — — $ 40,577 $ 42,161 $ 55,523 $ 50,801 Pension Service Cost Education $ 7,789 $ 6,649 $ 8,753 $ 9,720 Television broadcasting 2,273 1,638 2,188 1,942 Manufacturing 60 54 72 79 Healthcare 369 430 573 665 SocialCode 658 542 723 593 Other businesses 577 417 578 453 Corporate office 3,600 4,000 5,334 5,235 $ 15,326 $ 13,730 $ 18,221 $ 18,687 Capital Expenditures Education $ 54,159 $ 27,520 Television broadcasting 27,013 16,802 Manufacturing 14,806 8,012 Healthcare 1,741 2,987 SocialCode 113 756 Other businesses 235 1,003 Corporate office — — $ 98,067 $ 57,080 Asset information for the Company’s business segments are as follows: As of (in thousands) September 30, 2019 December 31, 2018 Identifiable Assets Education $ 1,925,819 $ 1,568,747 Television broadcasting 470,915 452,853 Manufacturing 577,244 593,111 Healthcare 132,068 108,596 SocialCode 238,253 213,394 Other businesses 333,720 20,608 Corporate office 71,501 162,971 $ 3,749,520 $ 3,120,280 Investments in Marketable Equity Securities 535,564 496,390 Investments in Affiliates 163,986 143,813 Prepaid Pension Cost 1,038,676 1,003,558 Total Assets $ 5,487,746 $ 4,764,041 The Company’s education division comprises the following operating segments: Three Months Ended Nine months ended September 30 September 30 (in thousands) 2019 2018 2019 2018 Operating Revenues Kaplan international $ 178,169 $ 167,668 $ 552,505 $ 535,553 Higher education 78,712 89,269 237,780 275,080 Test preparation 64,710 67,749 191,533 195,504 Professional (U.S.) 33,820 34,302 110,181 98,715 Kaplan corporate and other 2,450 143 7,121 870 Intersegment elimination (542 ) (530 ) (1,584 ) (1,617 ) $ 357,319 $ 358,601 $ 1,097,536 $ 1,104,105 Income (Loss) from Operations Kaplan international $ (14,226 ) $ 8,375 $ 35,596 $ 52,966 Higher education 5,177 6,042 9,813 18,616 Test preparation 4,959 10,572 8,794 17,213 Professional (U.S.) 4,939 6,768 20,943 20,863 Kaplan corporate and other (8,011 ) (9,452 ) (30,405 ) (27,110 ) Intersegment elimination 1 (43 ) (2 ) (32 ) $ (7,161 ) $ 22,262 $ 44,739 $ 82,516 Depreciation of Property, Plant and Equipment Kaplan international $ 3,600 $ 3,759 $ 11,198 $ 11,497 Higher education 840 915 2,066 4,047 Test preparation 774 1,033 2,358 2,984 Professional (U.S.) 978 859 2,802 2,171 Kaplan corporate and other 66 119 172 431 $ 6,258 $ 6,685 $ 18,596 $ 21,130 Amortization of Intangible Assets $ 3,944 $ 2,682 $ 10,888 $ 5,494 Impairment of Long-lived Assets $ — $ — $ 693 $ — Pension Service Cost Kaplan international $ 114 $ 66 $ 341 $ 233 Higher education 1,136 1,050 3,401 3,260 Test preparation 847 577 2,534 2,035 Professional (U.S.) 340 291 1,017 871 Kaplan corporate and other 166 123 496 250 $ 2,603 $ 2,107 $ 7,789 $ 6,649 Asset information for the Company’s education division is as follows: As of (in thousands) September 30, 2019 December 31, 2018 Identifiable assets Kaplan international $ 1,336,238 $ 1,101,040 Higher education 202,553 126,752 Test preparation 165,471 145,308 Professional (U.S.) 154,568 166,916 Kaplan corporate and other 66,989 28,731 $ 1,925,819 $ 1,568,747 |
Organization, Basis of Presen_2
Organization, Basis of Presentation And Recent Accounting Pronouncements (Policies) | 9 Months Ended |
Sep. 30, 2019 | |
Organization, Consolidation and Presentation of Financial Statements [Abstract] | |
Basis of Presentation | Basis of Presentation – The accompanying condensed consolidated financial statements have been prepared in accordance with: (i) generally accepted accounting principles in the United States of America (GAAP) for interim financial information; (ii) the instructions to Form 10-Q; and (iii) the guidance of Rule 10-01 of Regulation S-X under the Securities and Exchange Act of 1934, as amended, for financial statements required to be filed with the Securities and Exchange Commission (SEC). They include the assets, liabilities, results of operations and cash flows of the Company, including its domestic and foreign subsidiaries that are more than 50% owned or otherwise controlled by the Company. As permitted under such rules, certain notes and other financial information normally required by GAAP have been condensed or omitted. Management believes the accompanying condensed consolidated financial statements reflect all normal and recurring adjustments necessary for a fair statement of the Company’s financial position, results of operations, and cash flows as of and for the periods presented herein. The Company’s results of operations for the three and nine months ended September 30, 2019 and 2018 may not be indicative of the Company’s future results. These condensed consolidated financial statements are unaudited and should be read in conjunction with the Company’s audited consolidated financial statements and the notes thereto included in the Company’s Annual Report on Form 10-K for the fiscal year ended December 31, 2018 . The year-end condensed consolidated balance sheet data was derived from audited financial statements, but does not include all disclosures required by GAAP. |
Use of Estimates in the Preparation of the Condensed Consolidated Financial Statements | Use of Estimates in the Preparation of the Condensed Consolidated Financial Statements – The preparation of the condensed consolidated financial statements in conformity with GAAP requires management to make estimates and judgments that affect the amounts reported herein. Management bases its estimates and assumptions on historical experience and on various other factors that are believed to be reasonable under the circumstances. Due to the inherent uncertainty involved in making estimates, actual results reported in future periods may be affected by changes in those estimates. |
Recently Adopted and Issued Accounting Pronouncements | Recently Adopted and Issued Accounting Pronouncements – In February 2016, the Financial Accounting Standards Board (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 previous guidance for operating leases. This new guidance supersedes all prior guidance. The guidance is effective for interim and fiscal years beginning after December 15, 2018. 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 adopted the new guidance on January 1, 2019 using the effective date method. The Company elected the available package of transition practical expedients, which allowed the Company to use its historical assessments of whether contracts are or contain leases, lease classification and initial direct costs. Additionally, the Company elected the transition practical expedient to use hindsight to determine the lease term. Upon adoption of the new guidance, the Company recognized right-of-use assets of $ 369.3 million and lease liabilities of $ 418.3 million . The cumulative effect of the changes to the Company’s Condensed Consolidated Balance Sheets as a result of adopting the new guidance was as follows: Balance as of December 31, 2018 Adjustments Balance as of January 1, 2019 Assets Other current assets $ 82,723 $ (5,595 ) $ 77,128 Lease Right-of-Use Assets — 369,333 369,333 Liabilities Accounts payable and accrued liabilities $ 486,578 $ (14,029 ) $ 472,549 Current portion of lease liabilities — 86,747 86,747 Other Liabilities 57,901 (40,500 ) 17,401 Lease Liabilities — 331,520 331,520 |
Organization, Basis of Presen_3
Organization, Basis of Presentation and Recent Accounting Pronouncements (Tables) | 9 Months Ended |
Sep. 30, 2019 | |
New Accounting Pronouncement, Early Adoption [Line Items] | |
Schedule of Prospective Adoption of New Accounting Pronouncements | The cumulative effect of the changes to the Company’s Condensed Consolidated Balance Sheets as a result of adopting the new guidance was as follows: Balance as of December 31, 2018 Adjustments Balance as of January 1, 2019 Assets Other current assets $ 82,723 $ (5,595 ) $ 77,128 Lease Right-of-Use Assets — 369,333 369,333 Liabilities Accounts payable and accrued liabilities $ 486,578 $ (14,029 ) $ 472,549 Current portion of lease liabilities — 86,747 86,747 Other Liabilities 57,901 (40,500 ) 17,401 Lease Liabilities — 331,520 331,520 |
Acquisitions and Dispositions_2
Acquisitions and Dispositions of Businesses (Tables) | 9 Months Ended |
Sep. 30, 2019 | |
Acquisitions And Dispositions [Abstract] | |
Schedule of assets acquired and liabilities assumed | The aggregate purchase price of the 2019 and 2018 acquisitions was allocated as follows (2019 on a preliminary basis), based on acquisition date fair values to the following assets and liabilities: Purchase Price Allocation Nine Months Ended Year Ended (in thousands) September 30, 2019 December 31, 2018 Accounts receivable $ 4,697 $ 2,344 Inventory 31,750 1,268 Property, plant and equipment 52,577 1,518 Lease Right-of-Use Assets 100,933 — Goodwill 63,387 41,840 Indefinite-lived intangible assets 46,900 — Amortized intangible assets 21,291 78,427 Other assets 8,352 5,198 Floor plan payables (25,755 ) — Other liabilities (38,828 ) (7,678 ) Deferred income taxes (2,191 ) (4,900 ) Current and noncurrent lease liabilities (97,996 ) — Noncontrolling interest (530 ) — Aggregate purchase price, net of cash acquired $ 164,587 $ 118,017 |
Acquisition 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 2018 . The unaudited pro forma information also includes the 2018 acquisitions as if they occurred at the beginning of 2017 : Three Months Ended Nine Months Ended (in thousands) 2019 2018 2019 2018 Operating revenues $ 750,076 $ 787,808 $ 2,267,502 $ 2,349,342 Net income 43,849 125,761 178,551 217,589 |
Information related to Disposal Group | The revenue and operating income related to the KU business disposed of are as follows: (in thousands) Three Months Ended September 30, 2018 Nine Months Ended September 30, 2018 Revenue $ — $ 91,526 Operating income — 213 |
Investments (Tables)
Investments (Tables) | 9 Months Ended |
Sep. 30, 2019 | |
Investments [Abstract] | |
Investments in Marketable Equity Securities | Investments in marketable equity securities consist of the following: As of September 30, December 31, (in thousands) Total cost $ 282,349 $ 282,563 Gross unrealized gains 253,215 216,111 Gross unrealized losses — (2,284 ) Total Fair Value $ 535,564 $ 496,390 |
Gain on Marketable Equity Securities | The gain on marketable equity securities comprised the following: Three Months Ended Nine Months Ended (in thousands) 2019 2018 2019 2018 Gain on marketable equity securities, net $ 17,404 $ 44,962 $ 49,261 $ 28,306 Less: Net losses (gains) in earnings from marketable equity securities sold and donated 61 — (2,919 ) 4,271 Net unrealized gains in earnings from marketable equity securities still held at the end of the period $ 17,465 $ 44,962 $ 46,342 $ 32,577 |
Accounts Receivable (Tables)
Accounts Receivable (Tables) | 9 Months Ended |
Sep. 30, 2019 | |
Accounts and Financing Receivable, after Allowance for Credit Loss [Abstract] | |
Schedule of Accounts Receivable | Accounts receivable consist of the following: As of September 30, December 31, (in thousands) Receivables from contracts with customers, less doubtful accounts of $13,060 and $14,775 $ 582,944 $ 538,021 Other receivables 29,197 44,259 $ 612,141 $ 582,280 |
Inventories, Contracts in Pro_2
Inventories, Contracts in Progress and Vehicle Floor Plan Payable (Tables) | 9 Months Ended |
Sep. 30, 2019 | |
Inventory, Net of Allowances, Customer Advances and Progress Billings [Abstract] | |
Schedule of Inventories and Contracts in Progress | Inventories and contracts in progress consist of the following: As of September 30, December 31, (in thousands) Raw materials $ 35,776 $ 37,248 Work-in-process 11,176 11,633 Finished goods 62,451 17,861 Contracts in progress 3,793 2,735 $ 113,196 $ 69,477 |
Leases (Tables)
Leases (Tables) | 9 Months Ended |
Sep. 30, 2019 | |
Leases [Abstract] | |
Components of Lease Expense | The components of lease expense were as follows: (in thousands) Three Months Ended September 30, 2019 Nine Months Ended September 30, 2019 Operating lease cost $ 26,242 $ 75,531 Short-term and month-to-month lease cost 4,502 14,275 Variable lease cost 5,601 15,563 Sublease income (5,222 ) (14,915 ) Total net lease cost $ 31,123 $ 90,454 |
Supplemental Cash Flow And Balance Sheet Information Related To Leases | Supplemental information related to leases was as follows: (in thousands) Nine Months Ended September 30, 2019 Cash Flow Information: Operating cash flows from operating leases (payments) $ 88,369 Right-of-use assets obtained in exchange for new operating lease liabilities (noncash) 205,455 As of September 30, 2019 Balance Sheet Information: Lease right-of-use assets $ 503,830 Current lease liabilities $ 78,114 Noncurrent lease liabilities 462,868 Total lease liabilities $ 540,982 Weighted average remaining lease term (years) 10.8 Weighted average discount rate 4.3 % |
Maturities of Operating Lease Liabilities | Maturities of lease liabilities were as follows: (in thousands) September 30, 2019 2019 $ 20,271 2020 103,515 2021 86,245 2022 71,147 2023 62,384 Thereafter 358,758 Total payments 702,320 Less: Imputed interest (161,338 ) Total $ 540,982 |
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) December 31, 2018 2019 $ 101,009 2020 84,945 2021 72,031 2022 53,709 2023 47,091 Thereafter 115,948 $ 474,733 |
Goodwill and Other Intangible_2
Goodwill and Other Intangible Assets (Tables) | 9 Months Ended |
Sep. 30, 2019 | |
Changes in Carrying Amount of Goodwill | The changes in the carrying amount of goodwill, by segment, were as follows: (in thousands) Education Television Broadcasting Manufacturing Healthcare SocialCode Other Businesses Total Balance as of December 31, 2018 Goodwill $ 1,128,699 $ 190,815 $ 231,479 $ 69,626 $ 15,860 $ 7,685 $ 1,644,164 Accumulated impairment losses (331,151 ) — (7,616 ) — — (7,685 ) (346,452 ) 797,548 190,815 223,863 69,626 15,860 — 1,297,712 Acquisitions 6,391 — 2,714 8,283 — 45,999 63,387 Foreign currency exchange rate changes (15,706 ) — — — — — (15,706 ) Balance as of September 30, 2019 Goodwill 1,119,384 190,815 234,193 77,909 15,860 53,684 1,691,845 Accumulated impairment losses (331,151 ) — (7,616 ) — — (7,685 ) (346,452 ) $ 788,233 $ 190,815 $ 226,577 $ 77,909 $ 15,860 $ 45,999 $ 1,345,393 |
Other Intangible Assets | Other intangible assets consist of the following: As of September 30, 2019 As of December 31, 2018 (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 $ 291,662 $ 136,319 $ 155,343 $ 282,761 $ 114,429 $ 168,332 Trade names and trademarks 2–10 years 92,568 46,204 46,364 87,285 39,825 47,460 Network affiliation agreements 10 years 17,400 4,712 12,688 17,400 3,408 13,992 Databases and technology 3–6 years 30,274 12,221 18,053 27,041 8,471 18,570 Noncompete agreements 2–5 years 1,353 931 422 1,088 838 250 Other 1–8 years 24,890 12,367 12,523 24,530 9,873 14,657 $ 458,147 $ 212,754 $ 245,393 $ 440,105 $ 176,844 $ 263,261 Indefinite-Lived Intangible Assets Trade names and trademarks $ 97,527 $ 80,102 Franchise agreements 28,000 — FCC licenses 18,800 18,800 Licensure and accreditation 150 150 $ 144,477 $ 99,052 |
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 Balance 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 Acquisitions 6,391 — — — 6,391 Foreign currency exchange rate changes (15,760 ) — — 54 (15,706 ) Balance as of September 30, 2019 Goodwill 574,055 174,564 166,920 203,845 1,119,384 Accumulated impairment losses — (111,324 ) (102,259 ) (117,568 ) (331,151 ) $ 574,055 $ 63,240 $ 64,661 $ 86,277 $ 788,233 |
Debt (Tables)
Debt (Tables) | 9 Months Ended |
Sep. 30, 2019 | |
Debt Disclosure [Abstract] | |
Components of Debt | The Company’s borrowings consist of the following: As of September 30, December 31, (in thousands) 5.75% unsecured notes due June 1, 2026 (1) $ 395,212 $ 394,675 U.K. credit facility (2) 73,683 82,366 Commercial note 28,250 — USD revolving credit facility 5,000 — Other indebtedness 87 96 Total Debt $ 502,232 $ 477,137 Less: current portion (81,697 ) (6,360 ) Total Long-Term Debt $ 420,535 $ 470,777 ___________ _ (1) The carrying value is net of $4.8 million and $5.3 million of unamortized debt issuance costs as of September 30, 2019 and December 31, 2018 , respectively. (2) The carrying value is net of $0.1 million and $0.2 million of unamortized debt issuance costs as of September 30, 2019 and December 31, 2018 , respectively. |
Fair Value Measurements (Tables
Fair Value Measurements (Tables) | 9 Months Ended |
Sep. 30, 2019 | |
Fair Value Disclosures [Abstract] | |
Schedule of Fair Value, Assets and Liabilities Measured on Recurring Basis | The Company’s financial assets and liabilities measured at fair value on a recurring basis were as follows: As of September 30, 2019 (in thousands) Level 1 Level 2 Total Assets Marketable equity securities (1) $ 535,564 $ — $ 535,564 Other current investments (2) 13,601 5,045 18,646 Interest rate swap (3) — 162 162 Total Financial Assets $ 549,165 $ 5,207 $ 554,372 Liabilities Deferred compensation plan liabilities (4) $ — $ 33,195 $ 33,195 Interest rate swap (5) — 706 706 Total Financial Liabilities $ — $ 33,901 $ 33,901 As of December 31, 2018 (in thousands) Level 1 Level 2 Total Assets Money market investments (6) $ — $ 75,500 $ 75,500 Marketable equity securities (1) 496,390 — 496,390 Other current investments (2) 11,203 6,988 18,191 Interest rate swap (3) — 369 369 Total Financial Assets $ 507,593 $ 82,857 $ 590,450 Liabilities Deferred compensation plan liabilities (4) $ — $ 36,080 $ 36,080 ____________ (1) 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. (2) 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. (3) Included in Other Current 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. (4) 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. (5) 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. (6) The Company’s money market investments are included in Cash and Cash Equivalents and the value considers the liquidity of the counterparty. |
Revenue from Contracts with C_2
Revenue from Contracts with Customers (Tables) | 9 Months Ended |
Sep. 30, 2019 | |
Revenue from Contract with Customer [Abstract] | |
Contract with Customer, Liability | The following table presents the change in the Company’s deferred revenue balance: As of September 30, December 31, % (in thousands) Change Deferred revenue $ 341,682 $ 311,214 10 |
Capitalized Contract Cost | The following table presents changes in the Company’s costs to obtain a contract asset: (in thousands) Balance at Beginning of Period Costs associated with new contracts Less: Costs amortized during the period Other Balance at End of Period 2019 $ 21,311 $ 29,381 $ (34,729 ) $ (312 ) $ 15,651 |
Earnings Per Share (Tables)
Earnings Per Share (Tables) | 9 Months Ended |
Sep. 30, 2019 | |
Earnings Per Share [Abstract] | |
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: Three Months Ended Nine Months Ended (in thousands, except per share amounts) 2019 2018 2019 2018 Numerator: Numerator for basic earnings per share: Net income attributable to Graham Holdings Company common stockholders $ 43,145 $ 125,064 $ 181,974 $ 214,521 Less: Dividends paid-common stock outstanding and unvested restricted shares (7,386 ) (7,048 ) (29,554 ) (28,635 ) Undistributed earnings 35,759 118,016 152,420 185,886 Percent allocated to common stockholders 99.44 % 99.34 % 99.44 % 99.34 % 35,559 117,235 151,570 184,657 Add: Dividends paid-common stock outstanding 7,345 7,001 29,389 28,447 Numerator for basic earnings per share $ 42,904 $ 124,236 $ 180,959 $ 213,104 Add: Additional undistributed earnings due to dilutive stock options 2 5 7 8 Numerator for diluted earnings per share $ 42,906 $ 124,241 $ 180,966 $ 213,112 Denominator: Denominator for basic earnings per share: Weighted average shares outstanding 5,285 5,302 5,285 5,354 Add: Effect of dilutive stock options 44 35 43 36 Denominator for diluted earnings per share 5,329 5,337 5,328 5,390 Graham Holdings Company Common Stockholders: Basic earnings per share $ 8.12 $ 23.43 $ 34.24 $ 39.81 Diluted earnings per share $ 8.05 $ 23.28 $ 33.96 $ 39.54 |
Antidilutive Weighted Average Restricted Stock and Options | Diluted earnings per share excludes the following weighted average potential common shares, as the effect would be antidilutive, as computed under the treasury stock method: Three Months Ended Nine Months Ended (in thousands) 2019 2018 2019 2018 Weighted average restricted stock 14 21 12 23 |
Pension and Postretirement Pl_2
Pension and Postretirement Plans (Tables) | 9 Months Ended |
Sep. 30, 2019 | |
Defined Benefit Pension Plan [Member] | |
Schedule of Net Benefit Costs | The total benefit arising from the Company’s defined benefit pension plans consists of the following components: Three Months Ended September 30 Nine Months Ended September 30 (in thousands) 2019 2018 2019 2018 Service cost $ 5,142 $ 4,473 $ 15,326 $ 13,730 Interest cost 11,743 11,844 35,078 34,943 Expected return on assets (30,832 ) (31,969 ) (91,955 ) (97,251 ) Amortization of prior service cost 824 36 2,058 114 Recognized actuarial gain — (2,974 ) — (6,994 ) Net Periodic Benefit (13,123 ) (18,590 ) (39,493 ) (55,458 ) Curtailment gain — — — (806 ) Special separation benefit expense (175 ) — 6,432 — Total Benefit $ (13,298 ) $ (18,590 ) $ (33,061 ) $ (56,264 ) |
Schedule of Allocation of Plan Assets | The assets of the Company’s pension plan were allocated as follows: As of September 30, December 31, U.S. equities 55 % 53 % U.S. stock index fund 21 % 28 % U.S. fixed income 17 % 13 % International equities 7 % 6 % 100 % 100 % |
Supplemental Executive Retirement Plan (SERP) [Member] | |
Schedule of Net Benefit Costs | The total cost arising from the Company’s Supplemental Executive Retirement Plan (SERP) consists of the following components: Three Months Ended September 30 Nine Months Ended September 30 (in thousands) 2019 2018 2019 2018 Service cost $ 214 $ 205 $ 643 $ 614 Interest cost 1,079 967 3,236 2,899 Amortization of prior service cost 85 77 254 233 Recognized actuarial loss 579 600 1,736 1,802 Net Periodic Cost $ 1,957 $ 1,849 $ 5,869 $ 5,548 |
Other Postretirement Benefit Plan, Defined Benefit [Member] | |
Schedule of Net Benefit Costs | Other Postretirement Plans. The total cost arising from the Company’s other postretirement plans consists of the following components: Three Months Ended September 30 Nine Months Ended September 30 (in thousands) 2019 2018 2019 2018 Service cost $ — $ 267 $ — $ 803 Interest cost 72 170 216 509 Amortization of prior service credit (1,841 ) (44 ) (5,522 ) (132 ) Recognized actuarial gain (1,090 ) (921 ) (3,270 ) (2,764 ) Net Periodic Benefit $ (2,859 ) $ (528 ) $ (8,576 ) $ (1,584 ) |
Other Non-Operating Income (Tab
Other Non-Operating Income (Tables) | 9 Months Ended |
Sep. 30, 2019 | |
Other Nonoperating Income (Expense) [Abstract] | |
Summary of non-operating income | A summary of non-operating income is as follows: Three Months Ended Nine Months Ended (in thousands) 2019 2018 2019 2018 Gain on sale of an equity affiliate $ — $ — $ 28,994 $ — Gain on cost method investments 3,669 8,487 5,080 8,487 Foreign currency gain (loss), net 661 (116 ) 1,284 (2,205 ) Impairment of a cost method investment — (2,500 ) — (2,500 ) Gain on sales of businesses 486 916 907 8,157 Gain on sale of cost method investments 259 — 259 2,845 (Loss) gain on sale of property, plant and equipment (38 ) — (82 ) 2,542 Other gain (loss), net 519 (3,645 ) (307 ) (2,664 ) Total Other Non-Operating Income $ 5,556 $ 3,142 $ 36,135 $ 14,662 |
Accumulated Other Comprehensi_2
Accumulated Other Comprehensive Income (Loss) (Tables) | 9 Months Ended |
Sep. 30, 2019 | |
Accumulated Other Comprehensive Income (Loss), Net of Tax [Abstract] | |
Summary of Other Comprehensive Income | The other comprehensive loss consists of the following components: Three Months Ended September 30 2019 2018 Before-Tax Income After-Tax Before-Tax Income After-Tax (in thousands) Amount Tax Amount Amount Tax Amount Foreign currency translation adjustments: Translation adjustments arising during the period $ (16,684 ) $ — $ (16,684 ) $ (2,844 ) $ — $ (2,844 ) Pension and other postretirement plans: Amortization of net prior service (credit) cost included in net income (932 ) 252 (680 ) 69 (18 ) 51 Amortization of net actuarial gain included in net income (511 ) 138 (373 ) (3,295 ) 891 (2,404 ) (1,443 ) 390 (1,053 ) (3,226 ) 873 (2,353 ) Cash flow hedges: Loss for the period (477 ) 128 (349 ) (6 ) 1 (5 ) Other Comprehensive Loss $ (18,604 ) $ 518 $ (18,086 ) $ (6,076 ) $ 874 $ (5,202 ) Nine Months Ended September 30 2019 2018 Before-Tax Income After-Tax Before-Tax Income After-Tax (in thousands) Amount Tax Amount Amount Tax Amount Foreign currency translation adjustments: Translation adjustments arising during the period $ (17,755 ) $ — $ (17,755 ) $ (22,447 ) $ — $ (22,447 ) Pension and other postretirement plans: Amortization of net prior service (credit) cost included in net income (3,210 ) 867 (2,343 ) 215 (58 ) 157 Amortization of net actuarial gain included in net income (1,534 ) 414 (1,120 ) (7,956 ) 2,148 (5,808 ) (4,744 ) 1,281 (3,463 ) (7,741 ) 2,090 (5,651 ) Cash flow hedges: (Loss) gain for the period (904 ) 231 (673 ) 601 (114 ) 487 Other Comprehensive Loss $ (23,403 ) $ 1,512 $ (21,891 ) $ (29,587 ) $ 1,976 $ (27,611 ) |
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 Pensions and Other Postretirement Plans Cash Flow Hedges Accumulated Other Comprehensive Income Balance as of December 31, 2018 $ (29,270 ) $ 232,836 $ 263 $ 203,829 Other comprehensive loss before reclassifications (17,755 ) — (562 ) (18,317 ) Net amount reclassified from accumulated other comprehensive income (loss) — (3,463 ) (111 ) (3,574 ) Other comprehensive loss, net of tax (17,755 ) (3,463 ) (673 ) (21,891 ) Balance as of September 30, 2019 $ (47,025 ) $ 229,373 $ (410 ) $ 181,938 |
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 (Loss) are as follows: Three Months Ended Nine Months Ended Affected Line Item in the Condensed Consolidated Statements of Operations (in thousands) 2019 2018 2019 2018 Pension and Other Postretirement Plans: Amortization of net prior service (credit) cost $ (932 ) $ 69 $ (3,210 ) $ 215 (1) Amortization of net actuarial gain (511 ) (3,295 ) (1,534 ) (7,956 ) (1) (1,443 ) (3,226 ) (4,744 ) (7,741 ) Before tax 390 873 1,281 2,090 Provision for Income Taxes (1,053 ) (2,353 ) (3,463 ) (5,651 ) Net of Tax Cash Flow Hedges (24 ) (59 ) (151 ) (101 ) Interest expense 11 11 40 19 Provision for Income Taxes (13 ) (48 ) (111 ) (82 ) Net of Tax Total reclassification for the period $ (1,066 ) $ (2,401 ) $ (3,574 ) $ (5,733 ) Net of Tax ____________ (1) These accumulated other comprehensive income components are components of net periodic pension and postretirement plan cost (see Note 12) and are included in non-operating pension and postretirement benefit income in the Company’s Condensed Consolidated Statements of Operations. |
Business Segments (Tables)
Business Segments (Tables) | 9 Months Ended |
Sep. 30, 2019 | |
Segment Reporting Information [Line Items] | |
Summary of Segment Reporting Information, by Operating Segment | The following tables summarize the financial information related to each of the Company’s business segments: Three Months Ended March 31, June 30, September 30, (in thousands) 2019 2019 2019 Operating Revenues Education $ 372,454 $ 367,763 $ 357,319 Television broadcasting 108,223 116,628 115,161 Manufacturing 115,157 114,873 111,676 Healthcare 37,728 40,641 40,688 SocialCode 13,447 16,382 15,975 Other businesses 45,230 81,359 98,225 Corporate office — — — Intersegment elimination (40 ) (44 ) (224 ) $ 692,199 $ 737,602 $ 738,820 Income (Loss) from Operations Education $ 25,595 $ 26,305 $ (7,161 ) Television broadcasting 35,540 44,494 36,813 Manufacturing 3,274 4,692 6,845 Healthcare 2,329 2,598 1,208 SocialCode (4,018 ) (975 ) (378 ) Other businesses (8,493 ) (5,913 ) (9,029 ) Corporate office (14,224 ) (13,238 ) (12,030 ) $ 40,003 $ 57,963 $ 16,268 Equity in Earnings of Affiliates, Net 1,679 1,467 4,683 Interest Expense, Net (5,725 ) (6,807 ) (5,302 ) Non-Operating Pension and Postretirement Benefit Income, Net 19,928 12,253 19,556 Gain on Marketable Equity Securities, Net 24,066 7,791 17,404 Other Income, Net 29,351 1,228 5,556 Income Before Income Taxes $ 109,302 $ 73,895 $ 58,165 Depreciation of Property, Plant and Equipment Education $ 6,201 $ 6,137 $ 6,258 Television broadcasting 3,239 3,293 3,307 Manufacturing 2,433 2,384 2,671 Healthcare 610 607 566 SocialCode 152 384 356 Other businesses 648 837 1,974 Corporate office 240 242 219 $ 13,523 $ 13,884 $ 15,351 Amortization of Intangible Assets and Impairment of Long-Lived Assets Education $ 3,567 $ 4,070 $ 3,944 Television broadcasting 1,408 1,408 1,408 Manufacturing 6,530 6,528 6,522 Healthcare 1,398 1,410 1,914 SocialCode 157 157 156 Other businesses — — — Corporate office — — — $ 13,060 $ 13,573 $ 13,944 Pension Service Cost Education $ 2,664 $ 2,522 $ 2,603 Television broadcasting 731 780 762 Manufacturing 25 15 20 Healthcare 183 63 123 SocialCode 248 191 219 Other businesses 201 161 215 Corporate office 1,169 1,231 1,200 $ 5,221 $ 4,963 $ 5,142 Three Months Ended March 31, June 30, September 30, December 31, (in thousands) 2018 2018 2018 2018 Operating Revenues Education $ 375,499 $ 370,005 $ 358,601 $ 346,910 Television broadcasting 108,802 114,086 130,014 152,647 Manufacturing 117,406 126,462 126,028 117,723 Healthcare 37,621 38,208 35,486 37,960 SocialCode 13,299 14,770 13,781 16,878 Other businesses 6,833 9,167 10,856 17,024 Corporate office — — — — Intersegment elimination (24 ) (21 ) — (55 ) $ 659,436 $ 672,677 $ 674,766 $ 689,087 Income (Loss) from Operations Education $ 22,700 $ 37,554 $ 22,262 $ 14,620 Television broadcasting 40,542 41,118 55,453 73,420 Manufacturing 8,628 8,665 5,146 6,412 Healthcare (1,391 ) 764 (8,702 ) 928 SocialCode (3,781 ) (1,742 ) 5,124 (682 ) Other businesses (8,542 ) (7,977 ) (5,657 ) (5,840 ) Corporate office (13,942 ) (12,756 ) (12,887 ) (13,276 ) $ 44,214 $ 65,626 $ 60,739 $ 75,582 Equity in Earnings of Affiliates, Net 2,579 931 9,537 1,426 Interest Expense, Net (6,699 ) (15,264 ) (5,524 ) (5,062 ) Debt Extinguishment Costs — (11,378 ) — — Non-Operating Pension and Postretirement Benefit Income 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 (Loss), Net 9,187 2,333 3,142 (12,559 ) Income from Continuing Operations Before Income Taxes $ 56,565 $ 62,735 $ 135,070 $ 69,138 Depreciation of Property, Plant and Equipment Education $ 7,606 $ 6,839 $ 6,685 $ 6,969 Television broadcasting 3,071 2,974 3,198 3,961 Manufacturing 2,451 2,331 2,333 2,400 Healthcare 653 647 648 629 SocialCode 233 200 187 177 Other businesses 375 375 345 428 Corporate office 253 253 252 249 $ 14,642 $ 13,619 $ 13,648 $ 14,813 Amortization of Intangible Assets and Impairment of Long-lived Assets Education $ 1,149 $ 1,663 $ 2,682 $ 3,868 Television broadcasting 1,408 1,408 1,408 1,408 Manufacturing 5,936 5,935 6,345 6,530 Healthcare 1,808 1,809 9,839 1,399 SocialCode 83 584 104 157 Other businesses — — — — Corporate office — — — — $ 10,384 $ 11,399 $ 20,378 $ 13,362 Pension Service Cost Education $ 2,664 $ 1,878 $ 2,107 $ 2,104 Television broadcasting 493 601 544 550 Manufacturing 17 19 18 18 Healthcare 122 165 143 143 SocialCode 156 205 181 181 Other businesses 116 154 147 161 Corporate office 1,372 1,295 1,333 1,334 $ 4,940 $ 4,317 $ 4,473 $ 4,491 Nine months ended Year Ended September 30 December 31 (in thousands) 2019 2018 2018 2017 Operating Revenues Education $ 1,097,536 $ 1,104,105 $ 1,451,015 $ 1,516,776 Television broadcasting 340,012 352,902 505,549 409,916 Manufacturing 341,706 369,896 487,619 414,193 Healthcare 119,057 111,315 149,275 154,202 SocialCode 45,804 41,850 58,728 62,077 Other businesses 224,814 26,856 43,880 34,733 Corporate office — — — — Intersegment elimination (308 ) (45 ) (100 ) (51 ) $ 2,168,621 $ 2,006,879 $ 2,695,966 $ 2,591,846 Income (Loss) from Operations Education $ 44,739 $ 82,516 $ 97,136 $ 77,687 Television broadcasting 116,847 137,113 210,533 139,258 Manufacturing 14,811 22,439 28,851 14,947 Healthcare 6,135 (9,329 ) (8,401 ) (2,569 ) SocialCode (5,371 ) (399 ) (1,081 ) (3,674 ) Other businesses (23,435 ) (22,176 ) (28,016 ) (30,536 ) Corporate office (39,492 ) (39,585 ) (52,861 ) (58,710 ) $ 114,234 $ 170,579 $ 246,161 $ 136,403 Equity in Earnings (Losses) of Affiliates, Net 7,829 13,047 14,473 (3,249 ) Interest Expense, Net (17,834 ) (27,487 ) (32,549 ) (27,305 ) Debt Extinguishment Costs — (11,378 ) (11,378 ) — Non-Operating Pension and Postretirement Benefit Income, Net 51,737 66,641 120,541 72,699 Gain (Loss) on Marketable Equity Securities, Net 49,261 28,306 (15,843 ) — Other Income, Net 36,135 14,662 2,103 4,241 Income Before Income Taxes $ 241,362 $ 254,370 $ 323,508 $ 182,789 Depreciation of Property, Plant and Equipment Education $ 18,596 $ 21,130 $ 28,099 $ 32,906 Television broadcasting 9,839 9,243 13,204 12,179 Manufacturing 7,488 7,115 9,515 9,173 Healthcare 1,783 1,948 2,577 4,583 SocialCode 892 620 797 1,004 Other businesses 3,459 1,095 1,523 1,546 Corporate office 701 758 1,007 1,118 $ 42,758 $ 41,909 $ 56,722 $ 62,509 Amortization of Intangible Assets and Impairment of Goodwill and Other Long-Lived Assets Education $ 11,581 $ 5,494 $ 9,362 $ 5,162 Television broadcasting 4,224 4,224 5,632 6,349 Manufacturing 19,580 18,216 24,746 31,052 Healthcare 4,722 13,456 14,855 7,905 SocialCode 470 771 928 333 Other businesses — — — — Corporate office — — — — $ 40,577 $ 42,161 $ 55,523 $ 50,801 Pension Service Cost Education $ 7,789 $ 6,649 $ 8,753 $ 9,720 Television broadcasting 2,273 1,638 2,188 1,942 Manufacturing 60 54 72 79 Healthcare 369 430 573 665 SocialCode 658 542 723 593 Other businesses 577 417 578 453 Corporate office 3,600 4,000 5,334 5,235 $ 15,326 $ 13,730 $ 18,221 $ 18,687 Capital Expenditures Education $ 54,159 $ 27,520 Television broadcasting 27,013 16,802 Manufacturing 14,806 8,012 Healthcare 1,741 2,987 SocialCode 113 756 Other businesses 235 1,003 Corporate office — — $ 98,067 $ 57,080 Asset information for the Company’s business segments are as follows: As of (in thousands) September 30, 2019 December 31, 2018 Identifiable Assets Education $ 1,925,819 $ 1,568,747 Television broadcasting 470,915 452,853 Manufacturing 577,244 593,111 Healthcare 132,068 108,596 SocialCode 238,253 213,394 Other businesses 333,720 20,608 Corporate office 71,501 162,971 $ 3,749,520 $ 3,120,280 Investments in Marketable Equity Securities 535,564 496,390 Investments in Affiliates 163,986 143,813 Prepaid Pension Cost 1,038,676 1,003,558 Total Assets $ 5,487,746 $ 4,764,041 |
Education [Member] | |
Segment Reporting Information [Line Items] | |
Summary of Segment Reporting Information, by Operating Segment | The Company’s education division comprises the following operating segments: Three Months Ended Nine months ended September 30 September 30 (in thousands) 2019 2018 2019 2018 Operating Revenues Kaplan international $ 178,169 $ 167,668 $ 552,505 $ 535,553 Higher education 78,712 89,269 237,780 275,080 Test preparation 64,710 67,749 191,533 195,504 Professional (U.S.) 33,820 34,302 110,181 98,715 Kaplan corporate and other 2,450 143 7,121 870 Intersegment elimination (542 ) (530 ) (1,584 ) (1,617 ) $ 357,319 $ 358,601 $ 1,097,536 $ 1,104,105 Income (Loss) from Operations Kaplan international $ (14,226 ) $ 8,375 $ 35,596 $ 52,966 Higher education 5,177 6,042 9,813 18,616 Test preparation 4,959 10,572 8,794 17,213 Professional (U.S.) 4,939 6,768 20,943 20,863 Kaplan corporate and other (8,011 ) (9,452 ) (30,405 ) (27,110 ) Intersegment elimination 1 (43 ) (2 ) (32 ) $ (7,161 ) $ 22,262 $ 44,739 $ 82,516 Depreciation of Property, Plant and Equipment Kaplan international $ 3,600 $ 3,759 $ 11,198 $ 11,497 Higher education 840 915 2,066 4,047 Test preparation 774 1,033 2,358 2,984 Professional (U.S.) 978 859 2,802 2,171 Kaplan corporate and other 66 119 172 431 $ 6,258 $ 6,685 $ 18,596 $ 21,130 Amortization of Intangible Assets $ 3,944 $ 2,682 $ 10,888 $ 5,494 Impairment of Long-lived Assets $ — $ — $ 693 $ — Pension Service Cost Kaplan international $ 114 $ 66 $ 341 $ 233 Higher education 1,136 1,050 3,401 3,260 Test preparation 847 577 2,534 2,035 Professional (U.S.) 340 291 1,017 871 Kaplan corporate and other 166 123 496 250 $ 2,603 $ 2,107 $ 7,789 $ 6,649 Asset information for the Company’s education division is as follows: As of (in thousands) September 30, 2019 December 31, 2018 Identifiable assets Kaplan international $ 1,336,238 $ 1,101,040 Higher education 202,553 126,752 Test preparation 165,471 145,308 Professional (U.S.) 154,568 166,916 Kaplan corporate and other 66,989 28,731 $ 1,925,819 $ 1,568,747 |
Organization, Basis of Presen_4
Organization, Basis of Presentation and Recent Accounting Pronouncements (Organization and Basis of Presentation) (Narrative) (Details) | Sep. 30, 2019TelevisionStation |
Television Broadcasting [Member] | |
Number of television broadcast stations | 7 |
Organization, Basis of Presen_5
Organization, Basis of Presentation and Recent Accounting Pronouncements (Recent Accounting Pronouncements) (Narrative) (Details) - USD ($) $ in Thousands | Sep. 30, 2019 | Jan. 01, 2019 | Dec. 31, 2018 |
New Accounting Pronouncements or Change in Accounting Principle [Line Items] | |||
Lease Right-of-Use Assets | $ 503,830 | $ 369,333 | $ 0 |
Total lease liabilities | $ 540,982 | ||
Accounting Standards Update 2016-02 [Member] | |||
New Accounting Pronouncements or Change in Accounting Principle [Line Items] | |||
Lease Right-of-Use Assets | 369,333 | ||
Total lease liabilities | $ 418,300 |
Organization, Basis of Presen_6
Organization, Basis of Presentation and Recent Accounting Pronouncements (Recent Accounting Pronouncements) (Details 1) - USD ($) $ in Thousands | Sep. 30, 2019 | Jan. 01, 2019 | Dec. 31, 2018 |
Item Effected [Line Items] | |||
Other current assets | $ 87,863 | $ 77,128 | $ 82,723 |
Lease Right-of-Use Assets | 503,830 | 369,333 | 0 |
Accounts payable and accrued liabilities | 477,522 | 472,549 | 486,578 |
Current portion of lease liabilities | 78,114 | 86,747 | 0 |
Other Liabilities | 27,398 | 17,401 | 57,901 |
Lease Liabilities | $ 462,868 | 331,520 | 0 |
Previous Accounting Guidance [Member] | |||
Item Effected [Line Items] | |||
Other current assets | 82,723 | ||
Lease Right-of-Use Assets | 0 | ||
Accounts payable and accrued liabilities | 486,578 | ||
Current portion of lease liabilities | 0 | ||
Other Liabilities | 57,901 | ||
Lease Liabilities | $ 0 | ||
Accounting Standards Update 2016-02 [Member] | |||
Item Effected [Line Items] | |||
Other current assets | (5,595) | ||
Lease Right-of-Use Assets | 369,333 | ||
Accounts payable and accrued liabilities | (14,029) | ||
Current portion of lease liabilities | 86,747 | ||
Other Liabilities | (40,500) | ||
Lease Liabilities | $ 331,520 |
Acquisitions and Dispositions_3
Acquisitions and Dispositions of Businesses (Acquisitions) (Narrative) (Details) $ in Thousands | Jan. 31, 2019USD ($)business | Sep. 30, 2019USD ($)business | Jul. 31, 2019businessRestaurants | Sep. 30, 2019USD ($) | Sep. 30, 2019USD ($)business | Sep. 30, 2018USD ($) | Dec. 31, 2018USD ($)business | Aug. 31, 2018 | Jul. 31, 2018 | Jul. 12, 2018 | May 31, 2018 |
Business Acquisition [Line Items] | |||||||||||
Number of businesses acquired | business | 7 | 8 | |||||||||
Acquisition purchase price | $ 191,600 | $ 121,100 | |||||||||
Floor plan payables | $ 25,800 | $ 25,800 | 25,800 | ||||||||
Purchase Price Net of Cash | 162,060 | $ 111,451 | |||||||||
Business Acquisition, Transaction Costs | 2,300 | 2,300 | 2,300 | $ 1,200 | |||||||
Goodwill expected to be deductible for income tax purposes | 49,000 | 49,000 | 49,000 | $ 32,300 | |||||||
Revenues of acquired companies since acquisition date | 96,200 | 199,600 | |||||||||
Operating loss of acquired companies since acquisition date | 2,000 | 500 | |||||||||
Automotive [Member] | |||||||||||
Business Acquisition [Line Items] | |||||||||||
Floor plan payables | $ 40,900 | $ 40,900 | $ 40,900 | ||||||||
Education [Member] | |||||||||||
Business Acquisition [Line Items] | |||||||||||
Number of businesses acquired | business | 1 | 5 | |||||||||
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% | ||||||||||
Healthcare [Member] | |||||||||||
Business Acquisition [Line Items] | |||||||||||
Number of businesses acquired | business | 1 | 2 | 1 | ||||||||
Manufacturing [Member] | |||||||||||
Business Acquisition [Line Items] | |||||||||||
Number of businesses acquired | business | 1 | 1 | 1 | ||||||||
Other Businesses [Member] | |||||||||||
Business Acquisition [Line Items] | |||||||||||
Number of businesses acquired | business | 3 | ||||||||||
Other Businesses [Member] | Clyde's Restaurant Group [Member] | |||||||||||
Business Acquisition [Line Items] | |||||||||||
Number of Restaurants | Restaurants | 13 | ||||||||||
Other Businesses [Member] | Furnlite Inc [Member] | Dekko [Member] | |||||||||||
Business Acquisition [Line Items] | |||||||||||
Percentage of interest acquired | 100.00% | ||||||||||
Other Businesses [Member] | Auto dealerships [Member] | |||||||||||
Business Acquisition [Line Items] | |||||||||||
Percentage of interest acquired | 90.00% | ||||||||||
Advances to Affiliate | $ 3,500 | ||||||||||
Interest Rate on Advance to Minority Shareholder | 6.00% | ||||||||||
Number of businesses acquired | business | 2 | ||||||||||
Amount Borrowed to Finance Business Acquisition | $ 30,000 | ||||||||||
Derivative, Fixed Interest Rate | 4.70% | ||||||||||
Other Businesses [Member] | Marketplace Strategy [Member] | SocialCode [Member] | |||||||||||
Business Acquisition [Line Items] | |||||||||||
Percentage of interest acquired | 100.00% | ||||||||||
SocialCode [Member] | |||||||||||
Business Acquisition [Line Items] | |||||||||||
Number of businesses acquired | business | 1 |
Acquisitions and Dispositions_4
Acquisitions and Dispositions of Businesses (Dispositions and Other) (Narrative) (Details) $ in Thousands | 1 Months Ended | 3 Months Ended | 9 Months Ended | |||||
Mar. 31, 2019USD ($) | Jun. 30, 2018USD ($) | Sep. 30, 2019USD ($) | Mar. 31, 2019USD ($) | Sep. 30, 2018USD ($) | Mar. 31, 2018USD ($) | Sep. 30, 2019USD ($) | Sep. 30, 2018USD ($)business | |
Income Statement, Balance Sheet and Additional Disclosures by Disposal Groups, Including Discontinued Operations [Line Items] | ||||||||
Gain on sales of businesses | $ 486 | $ 916 | $ 907 | $ 8,157 | ||||
Change in redemption value of manditorily redeemable noncontrolling interest | $ (54) | |||||||
Education [Member] | ||||||||
Income Statement, Balance Sheet and Additional Disclosures by Disposal Groups, Including Discontinued Operations [Line Items] | ||||||||
Gain on sales of businesses | $ 8,200 | |||||||
Number of businesses disposed | business | 3 | |||||||
Education [Member] | Higher Education [Member] | Kaplan University Transaction [Member] | ||||||||
Income Statement, Balance Sheet and Additional Disclosures by Disposal Groups, Including Discontinued Operations [Line Items] | ||||||||
Gain on sales of businesses | $ 4,300 | $ 4,300 | ||||||
Gain Related to Contingent Consideration | $ 500 | $ 500 | $ 900 | $ 1,900 | ||||
Graham Healthcare Group [Member] | ||||||||
Income Statement, Balance Sheet and Additional Disclosures by Disposal Groups, Including Discontinued Operations [Line Items] | ||||||||
Change in redemption value of manditorily redeemable noncontrolling interest | $ 6,200 | |||||||
Hoover Treated Wood Products [Member] | Other Businesses [Member] | ||||||||
Income Statement, Balance Sheet and Additional Disclosures by Disposal Groups, Including Discontinued Operations [Line Items] | ||||||||
Change in redemption value of manditorily redeemable noncontrolling interest | $ 600 | |||||||
Graham Holdings Company [Member] | Hoover Treated Wood Products [Member] | Other Businesses [Member] | ||||||||
Income Statement, Balance Sheet and Additional Disclosures by Disposal Groups, Including Discontinued Operations [Line Items] | ||||||||
Ownership percentage by parent | 98.01% | 98.01% |
Acquisitions and Dispositions_5
Acquisitions and Dispositions of Businesses (Assets Acquired and Liabilities Assumed) (Details 1) - USD ($) $ in Thousands | Sep. 30, 2019 | Dec. 31, 2018 |
Business Acquisition [Line Items] | ||
Goodwill | $ 1,345,393 | $ 1,297,712 |
Floor plan payables | (25,800) | |
Series of Individually Immaterial Business Acquisitions [Member] | ||
Business Acquisition [Line Items] | ||
Accounts receivable | 4,697 | 2,344 |
Inventory | 31,750 | 1,268 |
Property, plant and equipment | 52,577 | 1,518 |
Lease Right-of-Use Assets | 100,933 | 0 |
Goodwill | 63,387 | 41,840 |
Indefinite-lived intangible assets | 46,900 | 0 |
Amortized intangible assets | 21,291 | 78,427 |
Other assets | 8,352 | 5,198 |
Floor plan payables | (25,755) | 0 |
Other liabilities | (38,828) | (7,678) |
Deferred income tax liability | (2,191) | (4,900) |
Current and noncurrent lease liabilities | (97,996) | 0 |
Noncontrolling interest | (530) | 0 |
Aggregate purchase price, net of cash acquired | $ 164,587 | $ 118,017 |
Acquisitions and Dispositions_6
Acquisitions and Dispositions of Businesses (Pro Forma Financials) (Details 2) - USD ($) $ in Thousands | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2019 | Sep. 30, 2018 | Sep. 30, 2019 | Sep. 30, 2018 | |
Business Acquisition [Line Items] | ||||
Document Fiscal Year Focus | 2019 | |||
Pro Forma Operating Revenues | $ 750,076 | $ 787,808 | $ 2,267,502 | $ 2,349,342 |
Pro Forma Net Income | $ 43,849 | $ 125,761 | $ 178,551 | $ 217,589 |
Acquisitions and Dispositions_7
Acquisitions and Dispositions of Businesses (Significant Component) (Details 3) - Kaplan University Transaction [Member] - Education [Member] - Higher Education [Member] - USD ($) $ in Thousands | 3 Months Ended | 9 Months Ended |
Sep. 30, 2018 | Sep. 30, 2018 | |
Income Statement, Balance Sheet and Additional Disclosures by Disposal Groups, Including Discontinued Operations [Line Items] | ||
Disposal Group, Not Discontinued Operation, Revenue | $ 0 | $ 91,526 |
Disposal Group, Not Discontinued Operation, Operating Income | $ 0 | $ 213 |
Investments (Narrative) (Detail
Investments (Narrative) (Details) | 3 Months Ended | 9 Months Ended | 12 Months Ended | |||||||||||
Sep. 30, 2019USD ($) | Jun. 30, 2019USD ($) | Mar. 31, 2019USD ($) | Dec. 31, 2018USD ($) | Sep. 30, 2018USD ($) | Jun. 30, 2018USD ($) | Jun. 30, 2018GBP (£) | Mar. 31, 2018USD ($) | Sep. 30, 2019USD ($) | Sep. 30, 2018USD ($) | Dec. 31, 2018USD ($) | Dec. 31, 2017USD ($) | Sep. 30, 2019GBP (£) | Dec. 31, 2017GBP (£) | |
Schedule of Investments [Line Items] | ||||||||||||||
Money Market Investments | $ 0 | $ 75,500,000 | $ 0 | $ 75,500,000 | ||||||||||
Payments to Acquire Marketable Securities | 7,499,000 | $ 0 | ||||||||||||
Gain on marketable equity securities, net | 9,600,000 | 37,300,000 | ||||||||||||
Proceeds from sales of marketable equity securities | 17,586,000 | 66,741,000 | ||||||||||||
Income from Equity Method Investments | 4,683,000 | $ 1,467,000 | $ 1,679,000 | 1,426,000 | $ 9,537,000 | $ 931,000 | $ 2,579,000 | 7,829,000 | 13,047,000 | 14,473,000 | $ (3,249,000) | |||
Gain on sale of equity affiliate | 0 | 0 | 28,994,000 | 0 | ||||||||||
Cost method investments | 38,500,000 | $ 30,600,000 | 38,500,000 | $ 30,600,000 | ||||||||||
Gain on cost method investments | 3,669,000 | 1,300,000 | 8,487,000 | 5,080,000 | 8,487,000 | |||||||||
Impairment of a cost method investment | 0 | 2,500,000 | 0 | 2,500,000 | ||||||||||
Graham Healthcare Group [Member] | ||||||||||||||
Schedule of Investments [Line Items] | ||||||||||||||
Revenue from Related Parties | $ 2,400,000 | 2,500,000 | $ 7,000,000 | $ 9,500,000 | ||||||||||
Intersection Holdings [Member] | ||||||||||||||
Schedule of Investments [Line Items] | ||||||||||||||
Equity Method Investment, Ownership Percentage | 11.00% | 11.00% | 11.00% | |||||||||||
Residential Home Health Illinois [Member] | Graham Healthcare Group [Member] | ||||||||||||||
Schedule of Investments [Line Items] | ||||||||||||||
Equity Method Investment, Ownership Percentage | 40.00% | 40.00% | 40.00% | |||||||||||
Residential Hospice Illinois [Member] | Graham Healthcare Group [Member] | ||||||||||||||
Schedule of Investments [Line Items] | ||||||||||||||
Equity Method Investment, Ownership Percentage | 42.50% | 42.50% | 42.50% | |||||||||||
Residential Healthcare Michigan hospital joint venture [Member] | Graham Healthcare Group [Member] | ||||||||||||||
Schedule of Investments [Line Items] | ||||||||||||||
Equity Method Investment, Ownership Percentage | 40.00% | 40.00% | 40.00% | |||||||||||
Celtic Healthcare Allegheny Health Network Joint Venture [Member] | Graham Healthcare Group [Member] | ||||||||||||||
Schedule of Investments [Line Items] | ||||||||||||||
Equity Method Investment, Ownership Percentage | 40.00% | 40.00% | 40.00% | |||||||||||
Earnings of two investments [Member] | ||||||||||||||
Schedule of Investments [Line Items] | ||||||||||||||
Income from Equity Method Investments | $ 7,900,000 | |||||||||||||
Gimlet Media [Member] | ||||||||||||||
Schedule of Investments [Line Items] | ||||||||||||||
Gain on sale of equity affiliate | 29,000,000 | |||||||||||||
Proceeds from Sale of Equity Method Investments | $ 33,500,000 | |||||||||||||
York Joint Venture [Member] | KIHL [Member] | ||||||||||||||
Schedule of Investments [Line Items] | ||||||||||||||
Equity Method Investment, Ownership Percentage | 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 Terms | 25 years | |||||||||||||
Loan Receivable Fixed Interest Rate | 7.00% |
Investments (Investments in Mar
Investments (Investments in Marketable Equity Securities) (Details 1) - USD ($) $ in Thousands | Sep. 30, 2019 | Dec. 31, 2018 |
Investments [Abstract] | ||
Total Cost | $ 282,349 | $ 282,563 |
Gross unrealized gains | 253,215 | 216,111 |
Gross unrealized losses | 0 | (2,284) |
Total Fair Value | $ 535,564 | $ 496,390 |
Investments (Gain (Loss) on Mar
Investments (Gain (Loss) on Marketable Equity Securities) (Details 2) - USD ($) $ in Thousands | 3 Months Ended | 9 Months Ended | 12 Months Ended | ||||||||
Sep. 30, 2019 | Jun. 30, 2019 | Mar. 31, 2019 | Dec. 31, 2018 | Sep. 30, 2018 | Jun. 30, 2018 | Mar. 31, 2018 | Sep. 30, 2019 | Sep. 30, 2018 | Dec. 31, 2018 | Dec. 31, 2017 | |
Investments [Abstract] | |||||||||||
Gain on marketable equity securities, net | $ 17,404 | $ 7,791 | $ 24,066 | $ (44,149) | $ 44,962 | $ (2,554) | $ (14,102) | $ 49,261 | $ 28,306 | $ (15,843) | $ 0 |
Less: Net losses (gains) in earnings from marketable equity securities sold and donated | 61 | 0 | (2,919) | 4,271 | |||||||
Net unrealized gains in earnings from marketable equity securities still held at the end of the period | $ 17,465 | $ 44,962 | $ 46,342 | $ 32,577 |
Accounts Receivable (Narrative)
Accounts Receivable (Narrative) (Details) - USD ($) $ in Millions | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2019 | Sep. 30, 2018 | Sep. 30, 2019 | Sep. 30, 2018 | |
Accounts and Financing Receivable, after Allowance for Credit Loss [Abstract] | ||||
Bad debt expense | $ 0.4 | $ 1.8 | $ 0.5 | $ 7.9 |
Accounts Receivable (Details 1)
Accounts Receivable (Details 1) - USD ($) $ in Thousands | Sep. 30, 2019 | Dec. 31, 2018 |
Accounts and Financing Receivable, after Allowance for Credit Loss [Abstract] | ||
Receivable from contracts with customers, less doubtful accounts | $ 582,944 | $ 538,021 |
Other Receivables | 29,197 | 44,259 |
Accounts receivable, net | 612,141 | 582,280 |
Allowance for doubtful accounts | $ 13,060 | $ 14,775 |
Inventories, Contracts in Pro_3
Inventories, Contracts in Progress and Vehicle Floor Plan Payable (Details) - USD ($) $ in Thousands | Sep. 30, 2019 | Dec. 31, 2018 |
Inventory, Net of Allowances, Customer Advances and Progress Billings [Abstract] | ||
Raw materials | $ 35,776 | $ 37,248 |
Work-in-process | 11,176 | 11,633 |
Finished goods | 62,451 | 17,861 |
Contracts in progress | 3,793 | 2,735 |
Inventories and contracts in progress | $ 113,196 | $ 69,477 |
Inventories, Contracts in Pro_4
Inventories, Contracts in Progress and Vehicle Floor Plan Payable (Narrative) (Details) - USD ($) | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2019 | Sep. 30, 2018 | Sep. 30, 2019 | Sep. 30, 2018 | |
Inventory [Line Items] | ||||
Weighted average interest rate | 5.10% | 5.10% | 5.10% | 5.70% |
Vehicle floor plan payable | $ 25,800,000 | $ 25,800,000 | ||
Automotive [Member] | ||||
Inventory [Line Items] | ||||
Borrowing capacity | 50,000,000 | 50,000,000 | ||
Vehicle floor plan payable | 40,900,000 | 40,900,000 | ||
Floor plan assistance | $ 400,000 | $ 1,600,000 | ||
Automotive [Member] | Vehicle Floor Plan Facility [Member] | ||||
Inventory [Line Items] | ||||
Weighted average interest rate | 3.40% | 3.40% | ||
London Interbank Offered Rate (LIBOR) [Member] | Automotive [Member] | Vehicle Floor Plan Facility [Member] | ||||
Inventory [Line Items] | ||||
Applicable interest rate margin | 1.15% |
Leases (Narrative) (Details)
Leases (Narrative) (Details) - USD ($) $ in Thousands | 3 Months Ended | 9 Months Ended | |
Sep. 30, 2019 | Sep. 30, 2019 | Dec. 31, 2018 | |
Lessee, Lease, Description [Line Items] | |||
Lease Cost Net of Sublease Income | $ 31,123 | $ 90,454 | |
Lessee, operating lease, lease not yet commenced, payments due | $ 3,900 | $ 3,900 | |
Future minimum sublease payments due | $ 66,000 | ||
Minimum [Member] | |||
Lessee, Lease, Description [Line Items] | |||
Lessee, operating lease, renewal or termination option term | 1 year | ||
Lessee, operating lease, lease not yet commenced, term of contract | 1 year | 1 year | |
Maximum [Member] | |||
Lessee, Lease, Description [Line Items] | |||
Lessee, operating lease, renewal or termination option term | 10 years | ||
Lessee, operating lease, lease not yet commenced, term of contract | 12 years | 12 years | |
Sale of KHE Campuses business [Member] | |||
Lessee, Lease, Description [Line Items] | |||
Lease Cost Net of Sublease Income | $ (100) | $ 500 |
Leases (Components of Lease Exp
Leases (Components of Lease Expense) (Details) - USD ($) $ in Thousands | 3 Months Ended | 9 Months Ended |
Sep. 30, 2019 | Sep. 30, 2019 | |
Leases [Abstract] | ||
Operating lease cost | $ 26,242 | $ 75,531 |
Short-term and month-to-month lease cost | 4,502 | 14,275 |
Variable lease cost | 5,601 | 15,563 |
Sublease income | (5,222) | (14,915) |
Total net lease cost | $ 31,123 | $ 90,454 |
Leases (Supplemental Cash Flow
Leases (Supplemental Cash Flow And Balance Sheet Information) (Details) - USD ($) $ in Thousands | 9 Months Ended | ||
Sep. 30, 2019 | Jan. 01, 2019 | Dec. 31, 2018 | |
Leases [Abstract] | |||
Operating cash flows from operating leases (payments) | $ 88,369 | ||
Right-of-use assets obtained in exchange for new operating lease liabilities | 205,455 | ||
Lease right-of-use-assets | 503,830 | $ 369,333 | $ 0 |
Current lease liabilities | 78,114 | 86,747 | 0 |
Noncurrent lease liabilities | 462,868 | $ 331,520 | $ 0 |
Total lease liabilities | $ 540,982 | ||
Operating lease, weighted average remaining lease term | 10 years 9 months 18 days | ||
Operating lease, weighted average discount rate | 4.30% |
Leases (Maturities of Operating
Leases (Maturities of Operating Lease Liabilities) (Details) $ in Thousands | Sep. 30, 2019USD ($) |
Leases [Abstract] | |
Operating lease payments due in 2019 | $ 20,271 |
Operating lease payments due in 2020 | 103,515 |
Operating lease payments due in 2021 | 86,245 |
Operating lease payments due in 2022 | 71,147 |
Operating lease payments due in 2023 | 62,384 |
Operating lease payments due thereafter | 358,758 |
Leases, operating lease, liability, payments, due, total | 702,320 |
Less: Imputed interest | (161,338) |
Total operating lease liability | $ 540,982 |
Leases (Future Minimum Operatin
Leases (Future Minimum Operating Lease Payments) (Details) $ in Thousands | Dec. 31, 2018USD ($) |
Leases [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 |
Goodwill and Other Intangible_3
Goodwill and Other Intangible Assets (Goodwill) (Narrative) (Details) | 9 Months Ended |
Sep. 30, 2019Segment | |
Goodwill [Line Items] | |
Number of reportable segments | 8 |
Goodwill and Other Intangible_4
Goodwill and Other Intangible Assets (Other Intangible Assets) (Narrative) (Details) - USD ($) $ in Thousands | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2019 | Sep. 30, 2018 | Sep. 30, 2019 | Sep. 30, 2018 | |
Amortized Intangible Assets [Line Items] | ||||
Goodwill and other long-lived asset impairment charge | $ 372 | $ 8,109 | $ 1,065 | $ 8,109 |
Amortization of Intangible Assets | ||||
Amortization of intangible assets | 13,572 | 12,269 | 39,512 | $ 34,052 |
Estimated amortization of intangible assets, remainder of 2019 | 14,000 | 14,000 | ||
Estimated amortization of intangible assets, 2020 | 53,000 | 53,000 | ||
Estimated amortization of intangible assets, 2021 | 47,000 | 47,000 | ||
Estimated amortization of intangible assets, 2022 | 41,000 | 41,000 | ||
Estimated amortization of intangible assets, 2023 | 33,000 | 33,000 | ||
Estimated amortization of intangible assets, after 2023 | $ 57,000 | $ 57,000 | ||
Healthcare [Member] | ||||
Amortized Intangible Assets [Line Items] | ||||
Intangible asset impairment charge | $ 7,900 |
Goodwill and Other Intangible_5
Goodwill and Other Intangible Assets (Changes in Carrying Amount of Goodwill) (Details 1) $ in Thousands | 9 Months Ended |
Sep. 30, 2019USD ($) | |
Goodwill [Roll Forward] | |
Goodwill, beginning balance | $ 1,644,164 |
Accumulated impairment losses, beginning balance | (346,452) |
Goodwill, net, beginning balance | 1,297,712 |
Acquisitions | 63,387 |
Foreign currency exchange rate changes | (15,706) |
Goodwill, ending balance | 1,691,845 |
Accumulated impairment losses, ending balance | (346,452) |
Goodwill, net, ending balance | 1,345,393 |
Education [Member] | |
Goodwill [Roll Forward] | |
Goodwill, beginning balance | 1,128,699 |
Accumulated impairment losses, beginning balance | (331,151) |
Goodwill, net, beginning balance | 797,548 |
Acquisitions | 6,391 |
Foreign currency exchange rate changes | (15,706) |
Goodwill, ending balance | 1,119,384 |
Accumulated impairment losses, ending balance | (331,151) |
Goodwill, net, ending balance | 788,233 |
Education [Member] | Kaplan International [Member] | |
Goodwill [Roll Forward] | |
Goodwill, beginning balance | 583,424 |
Accumulated impairment losses, beginning balance | 0 |
Goodwill, net, beginning balance | 583,424 |
Acquisitions | 6,391 |
Foreign currency exchange rate changes | (15,760) |
Goodwill, ending balance | 574,055 |
Accumulated impairment losses, ending balance | 0 |
Goodwill, net, ending balance | 574,055 |
Education [Member] | Higher Education [Member] | |
Goodwill [Roll Forward] | |
Goodwill, beginning balance | 174,564 |
Accumulated impairment losses, beginning balance | (111,324) |
Goodwill, net, beginning balance | 63,240 |
Acquisitions | 0 |
Foreign currency exchange rate changes | 0 |
Goodwill, ending balance | 174,564 |
Accumulated impairment losses, ending balance | (111,324) |
Goodwill, net, ending balance | 63,240 |
Education [Member] | Test Preparation [Member] | |
Goodwill [Roll Forward] | |
Goodwill, beginning balance | 166,920 |
Accumulated impairment losses, beginning balance | (102,259) |
Goodwill, net, beginning balance | 64,661 |
Acquisitions | 0 |
Foreign currency exchange rate changes | 0 |
Goodwill, ending balance | 166,920 |
Accumulated impairment losses, ending balance | (102,259) |
Goodwill, net, ending balance | 64,661 |
Education [Member] | Professional (U.S.) [Member] | |
Goodwill [Roll Forward] | |
Goodwill, beginning balance | 203,791 |
Accumulated impairment losses, beginning balance | (117,568) |
Goodwill, net, beginning balance | 86,223 |
Acquisitions | 0 |
Foreign currency exchange rate changes | 54 |
Goodwill, ending balance | 203,845 |
Accumulated impairment losses, ending balance | (117,568) |
Goodwill, net, ending balance | 86,277 |
Television Broadcasting [Member] | |
Goodwill [Roll Forward] | |
Goodwill, beginning balance | 190,815 |
Accumulated impairment losses, beginning balance | 0 |
Goodwill, net, beginning balance | 190,815 |
Acquisitions | 0 |
Foreign currency exchange rate changes | 0 |
Goodwill, ending balance | 190,815 |
Accumulated impairment losses, ending balance | 0 |
Goodwill, net, ending balance | 190,815 |
Manufacturing [Member] | |
Goodwill [Roll Forward] | |
Goodwill, beginning balance | 231,479 |
Accumulated impairment losses, beginning balance | (7,616) |
Goodwill, net, beginning balance | 223,863 |
Acquisitions | 2,714 |
Foreign currency exchange rate changes | 0 |
Goodwill, ending balance | 234,193 |
Accumulated impairment losses, ending balance | (7,616) |
Goodwill, net, ending balance | 226,577 |
Healthcare [Member] | |
Goodwill [Roll Forward] | |
Goodwill, beginning balance | 69,626 |
Accumulated impairment losses, beginning balance | 0 |
Goodwill, net, beginning balance | 69,626 |
Acquisitions | 8,283 |
Foreign currency exchange rate changes | 0 |
Goodwill, ending balance | 77,909 |
Accumulated impairment losses, ending balance | 0 |
Goodwill, net, ending balance | 77,909 |
SocialCode [Member] | |
Goodwill [Roll Forward] | |
Goodwill, beginning balance | 15,860 |
Accumulated impairment losses, beginning balance | 0 |
Goodwill, net, beginning balance | 15,860 |
Acquisitions | 0 |
Foreign currency exchange rate changes | 0 |
Goodwill, ending balance | 15,860 |
Accumulated impairment losses, ending balance | 0 |
Goodwill, net, ending balance | 15,860 |
Other Businesses [Member] | |
Goodwill [Roll Forward] | |
Goodwill, beginning balance | 7,685 |
Accumulated impairment losses, beginning balance | (7,685) |
Goodwill, net, beginning balance | 0 |
Acquisitions | 45,999 |
Foreign currency exchange rate changes | 0 |
Goodwill, ending balance | 53,684 |
Accumulated impairment losses, ending balance | (7,685) |
Goodwill, net, ending balance | $ 45,999 |
Goodwill and Other Intangible_6
Goodwill and Other Intangible Assets (Other Intangible Assets) (Details 2) - USD ($) $ in Thousands | 9 Months Ended | 12 Months Ended |
Sep. 30, 2019 | Dec. 31, 2018 | |
Amortized Intangible Assets [Line Items] | ||
Gross Carrying Amount | $ 458,147 | $ 440,105 |
Accumulated Amortization | 212,754 | 176,844 |
Net Carrying Amount | 245,393 | 263,261 |
Indefinite-Lived Intangible Assets [Line Items] | ||
Indefinite-Lived Intangible Assets | 144,477 | 99,052 |
Trade Names and Trademarks [Member] | ||
Indefinite-Lived Intangible Assets [Line Items] | ||
Indefinite-Lived Intangible Assets | 97,527 | 80,102 |
Franchise Agreements [Member] | ||
Indefinite-Lived Intangible Assets [Line Items] | ||
Indefinite-Lived Intangible Assets | 28,000 | 0 |
FCC licenses [Member] | ||
Indefinite-Lived Intangible Assets [Line Items] | ||
Indefinite-Lived Intangible Assets | 18,800 | 18,800 |
Licensure and Accreditation [Member] | ||
Indefinite-Lived Intangible Assets [Line Items] | ||
Indefinite-Lived Intangible Assets | 150 | 150 |
Student and Customer Relationships [Member] | ||
Amortized Intangible Assets [Line Items] | ||
Gross Carrying Amount | 291,662 | 282,761 |
Accumulated Amortization | 136,319 | 114,429 |
Net Carrying Amount | $ 155,343 | $ 168,332 |
Student and Customer Relationships [Member] | Minimum [Member] | ||
Amortized Intangible Assets [Line Items] | ||
Useful Life | 2 years | 2 years |
Student and Customer Relationships [Member] | Maximum [Member] | ||
Amortized Intangible Assets [Line Items] | ||
Useful Life | 10 years | 10 years |
Trade Names and Trademarks [Member] | ||
Amortized Intangible Assets [Line Items] | ||
Gross Carrying Amount | $ 92,568 | $ 87,285 |
Accumulated Amortization | 46,204 | 39,825 |
Net Carrying Amount | $ 46,364 | $ 47,460 |
Trade Names and Trademarks [Member] | Minimum [Member] | ||
Amortized Intangible Assets [Line Items] | ||
Useful Life | 2 years | 2 years |
Trade Names and Trademarks [Member] | Maximum [Member] | ||
Amortized Intangible Assets [Line Items] | ||
Useful Life | 10 years | 10 years |
Network Affiliation Agreements [Member] | ||
Amortized Intangible Assets [Line Items] | ||
Useful Life | 10 years | 10 years |
Gross Carrying Amount | $ 17,400 | $ 17,400 |
Accumulated Amortization | 4,712 | 3,408 |
Net Carrying Amount | 12,688 | 13,992 |
Databases and Technology [Member] | ||
Amortized Intangible Assets [Line Items] | ||
Gross Carrying Amount | 30,274 | 27,041 |
Accumulated Amortization | 12,221 | 8,471 |
Net Carrying Amount | $ 18,053 | $ 18,570 |
Databases and Technology [Member] | Minimum [Member] | ||
Amortized Intangible Assets [Line Items] | ||
Useful Life | 3 years | 3 years |
Databases and Technology [Member] | Maximum [Member] | ||
Amortized Intangible Assets [Line Items] | ||
Useful Life | 6 years | 6 years |
Non-compete Agreements [Member] | ||
Amortized Intangible Assets [Line Items] | ||
Gross Carrying Amount | $ 1,353 | $ 1,088 |
Accumulated Amortization | 931 | 838 |
Net Carrying Amount | $ 422 | $ 250 |
Non-compete Agreements [Member] | Minimum [Member] | ||
Amortized Intangible Assets [Line Items] | ||
Useful Life | 2 years | 2 years |
Non-compete Agreements [Member] | Maximum [Member] | ||
Amortized Intangible Assets [Line Items] | ||
Useful Life | 5 years | 5 years |
Other [Member] | ||
Amortized Intangible Assets [Line Items] | ||
Gross Carrying Amount | $ 24,890 | $ 24,530 |
Accumulated Amortization | 12,367 | 9,873 |
Net Carrying Amount | $ 12,523 | $ 14,657 |
Other [Member] | Minimum [Member] | ||
Amortized Intangible Assets [Line Items] | ||
Useful Life | 1 year | 1 year |
Other [Member] | Maximum [Member] | ||
Amortized Intangible Assets [Line Items] | ||
Useful Life | 8 years | 8 years |
Debt (Narrative) (Details)
Debt (Narrative) (Details) - USD ($) | Jan. 31, 2019 | Jun. 29, 2018 | May 30, 2018 | Jun. 30, 2018 | Sep. 30, 2019 | Jun. 30, 2019 | Mar. 31, 2019 | Dec. 31, 2018 | Sep. 30, 2018 | Jun. 30, 2018 | Mar. 31, 2018 | Sep. 30, 2019 | Sep. 30, 2018 | Dec. 31, 2018 | Dec. 31, 2017 | |
Debt Instrument [Line Items] | ||||||||||||||||
Debt Extinguishment Costs | $ 0 | $ 0 | $ 0 | $ (11,378,000) | $ 0 | $ 0 | $ (11,378,000) | $ (11,378,000) | $ 0 | |||||||
Average borrowings outstanding | $ 501,100,000 | $ 480,600,000 | $ 499,700,000 | $ 529,200,000 | ||||||||||||
Weighted average interest rate | 5.10% | 5.10% | 5.10% | 5.70% | ||||||||||||
Interest Income (Expense), Net | $ (5,302,000) | $ (6,807,000) | $ (5,725,000) | (5,062,000) | $ (5,524,000) | $ (15,264,000) | $ (6,699,000) | $ (17,834,000) | $ (27,487,000) | (32,549,000) | $ (27,305,000) | |||||
Interest expense | 6,776,000 | $ 6,135,000 | 22,587,000 | $ 31,371,000 | ||||||||||||
5.75% Unsecured Notes due June 1, 2026 [Member] | ||||||||||||||||
Debt Instrument [Line Items] | ||||||||||||||||
Debt Issuance Costs, Net | $ 4,800,000 | $ 5,300,000 | $ 4,800,000 | $ 5,300,000 | ||||||||||||
Interest rate | 5.75% | 5.75% | 5.75% | 5.75% | 5.75% | |||||||||||
Debt Instrument, Face Amount | $ 400,000,000 | |||||||||||||||
Fair value of debt instrument | $ 432,300,000 | $ 406,700,000 | $ 432,300,000 | $ 406,700,000 | ||||||||||||
Carrying value of debt instrument | [1] | 395,212,000 | 394,675,000 | 395,212,000 | 394,675,000 | |||||||||||
7.25% Unsecured Notes Due February 1, 2019 [Member] | ||||||||||||||||
Debt Instrument [Line Items] | ||||||||||||||||
Interest rate | 7.25% | |||||||||||||||
Redemption of Notes Outstanding | $ 400,000,000 | |||||||||||||||
Debt Extinguishment Costs | $ 11,400,000 | |||||||||||||||
Kaplan Four-Year Credit Agreement dated July 14, 2016 [Member] | ||||||||||||||||
Debt Instrument [Line Items] | ||||||||||||||||
Debt Issuance Costs, Net | 100,000 | 200,000 | 100,000 | 200,000 | ||||||||||||
Line of credit facility outstanding | [2] | $ 73,683,000 | $ 82,366,000 | $ 73,683,000 | $ 82,366,000 | |||||||||||
Other Indebtedness [Member] | ||||||||||||||||
Debt Instrument [Line Items] | ||||||||||||||||
Interest rate | 2.00% | 2.00% | 2.00% | 2.00% | ||||||||||||
Five-Year Credit Agreement dated May 30, 2018 [Member] | ||||||||||||||||
Debt Instrument [Line Items] | ||||||||||||||||
Line of credit facility outstanding | $ 5,000,000 | $ 0 | $ 5,000,000 | $ 0 | ||||||||||||
Line of Credit Facility, Interest Rate at Period End | 5.50% | 5.50% | ||||||||||||||
Debt Instrument, Term | 5 years | |||||||||||||||
Credit facility current borrowing capacity | $ 300,000,000 | |||||||||||||||
Debt covenant net leverage ratio, maximum | 3.5 | |||||||||||||||
Debt covenant interest coverage ratio, minimum | 3.5 | |||||||||||||||
Five-Year Credit Agreement dated May 30, 2018 [Member] | Minimum [Member] | ||||||||||||||||
Debt Instrument [Line Items] | ||||||||||||||||
Line of Credit Facility, Unused Capacity, Commitment Fee Percentage | 0.15% | |||||||||||||||
Five-Year Credit Agreement dated May 30, 2018 [Member] | Maximum [Member] | ||||||||||||||||
Debt Instrument [Line Items] | ||||||||||||||||
Line of Credit Facility, Unused Capacity, Commitment Fee Percentage | 0.25% | |||||||||||||||
Five-Year Credit Agreement dated May 30, 2018 [Member] | Fed Funds Effective Rate Overnight Index Swap Rate [Member] | ||||||||||||||||
Debt Instrument [Line Items] | ||||||||||||||||
Applicable interest rate margin | 0.50% | |||||||||||||||
Five-Year Credit Agreement dated May 30, 2018 [Member] | Eurodollar [Member] | ||||||||||||||||
Debt Instrument [Line Items] | ||||||||||||||||
Applicable interest rate margin | 1.00% | |||||||||||||||
USD $200 million portion of revolver [Member] | ||||||||||||||||
Debt Instrument [Line Items] | ||||||||||||||||
Credit facility current borrowing capacity | $ 200,000,000 | |||||||||||||||
Multicurrency $100 million portion of revolver [Member] | ||||||||||||||||
Debt Instrument [Line Items] | ||||||||||||||||
Credit facility current borrowing capacity | $ 100,000,000 | |||||||||||||||
Commercial note [Member] | ||||||||||||||||
Debt Instrument [Line Items] | ||||||||||||||||
Commercial note payable | $ 28,250,000 | $ 0 | $ 28,250,000 | $ 0 | ||||||||||||
Automotive [Member] | Interest Rate Swap [Member] | ||||||||||||||||
Debt Instrument [Line Items] | ||||||||||||||||
Applicable interest rate margin | 2.00% | |||||||||||||||
Derivative, Notional Amount | $ 30,000,000 | |||||||||||||||
Fixed interest rate of derivative | 2.70% | |||||||||||||||
Total fixed interest rate of derivative | 4.70% | |||||||||||||||
Automotive [Member] | Commercial note [Member] | ||||||||||||||||
Debt Instrument [Line Items] | ||||||||||||||||
Commercial note payable | $ 30,000,000 | |||||||||||||||
Debt Instrument, Term | 10 years | |||||||||||||||
Monthly installment payments | $ 250,000 | |||||||||||||||
Automotive [Member] | Commercial note [Member] | London Interbank Offered Rate (LIBOR) [Member] | Minimum [Member] | ||||||||||||||||
Debt Instrument [Line Items] | ||||||||||||||||
Applicable interest rate margin | 1.75% | |||||||||||||||
Automotive [Member] | Commercial note [Member] | London Interbank Offered Rate (LIBOR) [Member] | Maximum [Member] | ||||||||||||||||
Debt Instrument [Line Items] | ||||||||||||||||
Applicable interest rate margin | 2.00% | |||||||||||||||
Graham Healthcare Group [Member] | ||||||||||||||||
Debt Instrument [Line Items] | ||||||||||||||||
Interest expense | $ 6,200,000 | |||||||||||||||
[1] | The carrying value is net of $4.8 million and $5.3 million of unamortized debt issuance costs as of September 30, 2019 and December 31, 2018 , respectively. | |||||||||||||||
[2] | The carrying value is net of $0.1 million and $0.2 million of unamortized debt issuance costs as of September 30, 2019 and December 31, 2018 , respectively. |
Debt (Details 1)
Debt (Details 1) - USD ($) $ in Thousands | Sep. 30, 2019 | Dec. 31, 2018 | |
Debt Instrument [Line Items] | |||
Other indebtedness | $ 87 | $ 96 | |
Total Debt | 502,232 | 477,137 | |
Less: current portion | (81,697) | (6,360) | |
Total Long-Term Debt | 420,535 | 470,777 | |
Five-Year Credit Agreement dated May 30, 2018 [Member] | |||
Debt Instrument [Line Items] | |||
Credit facility | 5,000 | 0 | |
5.75% Unsecured Notes due June 1, 2026 [Member] | |||
Debt Instrument [Line Items] | |||
Unsecured notes | [1] | 395,212 | 394,675 |
Unamortized debt issuance costs | 4,800 | 5,300 | |
Kaplan Four-Year Credit Agreement dated July 14, 2016 [Member] | |||
Debt Instrument [Line Items] | |||
Credit facility | [2] | 73,683 | 82,366 |
Unamortized debt issuance costs | 100 | 200 | |
Commercial note [Member] | |||
Debt Instrument [Line Items] | |||
Commercial note | $ 28,250 | $ 0 | |
[1] | The carrying value is net of $4.8 million and $5.3 million of unamortized debt issuance costs as of September 30, 2019 and December 31, 2018 , respectively. | ||
[2] | The carrying value is net of $0.1 million and $0.2 million of unamortized debt issuance costs as of September 30, 2019 and December 31, 2018 , respectively. |
Fair Value Measurements (Narrat
Fair Value Measurements (Narrative) (Details) - USD ($) $ in Thousands | 3 Months Ended | 9 Months Ended | |||
Sep. 30, 2019 | Mar. 31, 2019 | Sep. 30, 2018 | Sep. 30, 2019 | Sep. 30, 2018 | |
Fair Value Measurements [Abstract] | |||||
Impairment of long-lived assets | $ 372 | $ 8,109 | $ 1,065 | $ 8,109 | |
Gain on cost method investments | $ 3,669 | $ 1,300 | $ 8,487 | $ 5,080 | $ 8,487 |
Fair Value Measurements (Detail
Fair Value Measurements (Details 1) - USD ($) | Sep. 30, 2019 | Dec. 31, 2018 | |
Assets | |||
Money Market Investments | $ 0 | $ 75,500,000 | |
Marketable equity securities | 535,564,000 | 496,390,000 | |
Fair Value, Recurring [Member] | |||
Assets | |||
Money Market Investments | [1] | 75,500,000 | |
Marketable equity securities | [2] | 535,564,000 | 496,390,000 |
Other current investments | [3] | 18,646,000 | 18,191,000 |
Interest Rate Swap | [4] | 162,000 | 369,000 |
Total Financial Assets | 554,372,000 | 590,450,000 | |
Liabilities | |||
Deferred compensation plan liabilities | [5] | 33,195,000 | 36,080,000 |
Interest rate swap | [6] | 706,000 | |
Total Financial Liabilities | 33,901,000 | ||
Fair Value, Recurring [Member] | Level 1 [Member] | |||
Assets | |||
Money Market Investments | [1] | 0 | |
Marketable equity securities | [2] | 535,564,000 | 496,390,000 |
Other current investments | [3] | 13,601,000 | 11,203,000 |
Interest Rate Swap | [4] | 0 | 0 |
Total Financial Assets | 549,165,000 | 507,593,000 | |
Liabilities | |||
Deferred compensation plan liabilities | [5] | 0 | 0 |
Interest rate swap | [6] | 0 | |
Total Financial Liabilities | 0 | ||
Fair Value, Recurring [Member] | Level 2 [Member] | |||
Assets | |||
Money Market Investments | [1] | 75,500,000 | |
Marketable equity securities | [2] | 0 | 0 |
Other current investments | [3] | 5,045,000 | 6,988,000 |
Interest Rate Swap | [4] | 162,000 | 369,000 |
Total Financial Assets | 5,207,000 | 82,857,000 | |
Liabilities | |||
Deferred compensation plan liabilities | [5] | 33,195,000 | $ 36,080,000 |
Interest rate swap | [6] | 706,000 | |
Total Financial Liabilities | $ 33,901,000 | ||
[1] | The Company’s money market investments are included in Cash and Cash Equivalents 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. | ||
[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 Other Current 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. |
Revenue from Contracts with C_3
Revenue from Contracts with Customers (Narrative) (Details) - USD ($) $ in Thousands | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2019 | Sep. 30, 2018 | Sep. 30, 2019 | Sep. 30, 2018 | |
Disaggregation of Revenue [Line Items] | ||||
Deferred revenue recognized in period related to beginning balance | $ 254,400 | |||
Costs amortized during the period | $ 9,200 | $ (34,729) | ||
Transferred over Time [Member] | ||||
Disaggregation of Revenue [Line Items] | ||||
Percentage of Revenue | 70.00% | 80.00% | 74.00% | 80.00% |
Transferred at Point in Time [Member] | ||||
Disaggregation of Revenue [Line Items] | ||||
Percentage of Revenue | 30.00% | 20.00% | 26.00% | 20.00% |
U.S. [Member] | ||||
Disaggregation of Revenue [Line Items] | ||||
Percentage of Revenue | 79.00% | 78.00% | 77.00% | 76.00% |
Non-US [Member] | ||||
Disaggregation of Revenue [Line Items] | ||||
Percentage of Revenue | 21.00% | 22.00% | 23.00% | 24.00% |
Test Preparation [Member] | Long-term Contract with Customer [Member] | ||||
Disaggregation of Revenue [Line Items] | ||||
Minimum Term of Contract | 12 months | |||
Revenue, Remaining Performance Obligation, Amount | $ 8,900 | $ 8,900 | ||
Revenue Remaining Performance Obligation Percentage of Revenue Expected to be Recognized Over Next 12 Months | 66.00% | 66.00% | ||
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction, Period | 12 months | 12 months |
Revenue from Contracts with C_4
Revenue from Contracts with Customers (Contract Liability) (Details) - USD ($) $ in Thousands | 9 Months Ended | |
Sep. 30, 2019 | Dec. 31, 2018 | |
Revenue from Contract with Customer [Abstract] | ||
Deferred Revenue | $ 341,682 | $ 311,214 |
Deferred Revenue, Period Increase Percentage | 10.00% |
Revenue from Contracts with C_5
Revenue from Contracts with Customers (Capitalized Contract Cost) (Details) - USD ($) $ in Thousands | 3 Months Ended | 9 Months Ended | |
Sep. 30, 2019 | Sep. 30, 2019 | Dec. 31, 2018 | |
Revenue from Contract with Customer [Abstract] | |||
Contract costs capitalized during the period | $ 29,381 | ||
Costs amortized during the period | $ 9,200 | (34,729) | |
Change in capitalized contract cost, other | (312) | ||
Balance of costs to obtain a contract | $ 15,651 | $ 15,651 | $ 21,311 |
Earnings Per Share (Narrative)
Earnings Per Share (Narrative) (Details) - $ / shares | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2019 | Sep. 30, 2018 | Sep. 30, 2019 | Sep. 30, 2018 | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||
Dividends declared per common share | $ 1.39 | $ 1.33 | $ 5.56 | $ 5.32 |
Stock Option Plan [Member] | ||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||
Antidilutive securities, shares | 104,000 | 104,000 | 104,000 | 104,000 |
Restricted Stock Awards [Member] | ||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||
Antidilutive securities, shares | 5,250 | 5,250 |
Earnings Per Share (Details 1)
Earnings Per Share (Details 1) - USD ($) $ / shares in Units, shares in Thousands, $ in Thousands | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2019 | Sep. 30, 2018 | Sep. 30, 2019 | Sep. 30, 2018 | |
Schedule of Earnings Per Share, Basic and Diluted, Including Two Class Method [Line Items] | ||||
Net income attributable to Graham Holdings Company common stockholders | $ 43,145 | $ 125,064 | $ 181,974 | $ 214,521 |
Less: Dividends paid-common stock outstanding and unvested restricted shares | (7,386) | (7,048) | (29,554) | (28,635) |
Undistributed earnings | $ 35,759 | $ 118,016 | $ 152,420 | $ 185,886 |
Percent allocated to common stockholders | 99.44% | 99.34% | 99.44% | 99.34% |
Undistributed Earnings Allocated To Common Stockholders | $ 35,559 | $ 117,235 | $ 151,570 | $ 184,657 |
Add: Dividends paid-common stock outstanding | 7,345 | 7,001 | 29,389 | 28,447 |
Numerator for basic earnings per share | 42,904 | 124,236 | 180,959 | 213,104 |
Add: Additional undistributed earnings due to dilutive stock options | 2 | 5 | 7 | 8 |
Numerator for diluted earnings per share | $ 42,906 | $ 124,241 | $ 180,966 | $ 213,112 |
Weighted average shares outstanding (shares) | 5,285 | 5,302 | 5,285 | 5,354 |
Denominator for diluted earnings per share (shares) | 5,329 | 5,337 | 5,328 | 5,390 |
Graham Holdings Company Common Stockholders: | ||||
Basic income per common share in dollars per share | $ 8.12 | $ 23.43 | $ 34.24 | $ 39.81 |
Diluted income per common share in dollars per share | $ 8.05 | $ 23.28 | $ 33.96 | $ 39.54 |
Stock Option Plan [Member] | ||||
Schedule of Earnings Per Share, Basic and Diluted, Including Two Class Method [Line Items] | ||||
Add: Effect of dilutive stock options (shares) | 44 | 35 | 43 | 36 |
Earnings Per Share (Details 2)
Earnings Per Share (Details 2) - shares shares in Thousands | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2019 | Sep. 30, 2018 | Sep. 30, 2019 | Sep. 30, 2018 | |
Earnings Per Share [Abstract] | ||||
Weighted average restricted stock | 14 | 21 | 12 | 23 |
Pension and Postretirement Pl_3
Pension and Postretirement Plans (Narrative) (Details) - Defined Benefit Pension Plan [Member] $ in Thousands | 3 Months Ended | 9 Months Ended | 12 Months Ended | ||
Sep. 30, 2019USD ($)Investmentcompanies | Sep. 30, 2018USD ($) | Sep. 30, 2019USD ($)Investmentcompanies | Sep. 30, 2018USD ($) | Dec. 31, 2018USD ($)Investment | |
Defined Benefit Plan Disclosure [Line Items] | |||||
Special separation benefit expense | $ (175) | $ 0 | $ 6,432 | $ 0 | |
Percent of plan assets managed internally by the company | 44.00% | ||||
Percent of plan assets managed by investment companies | 56.00% | ||||
Number of investment companies actively managing plan assets | companies | 2 | 2 | |||
Percentage of total plan assets | 100.00% | 100.00% | 100.00% | ||
Berkshire Hathaway Common Stock [Member] | Investment Manager 2 [Member] | |||||
Defined Benefit Plan Disclosure [Line Items] | |||||
Defined benefit plan, target allocation maximum percentage of assets, singular equity security, without prior approval by plan administrator | 20.00% | ||||
Alphabet and Berkshire Hathaway Common Stock [Member] | Investment Manager 1 [Member] | |||||
Defined Benefit Plan Disclosure [Line Items] | |||||
Defined benefit plan, target allocation maximum percentage of assets, singular equity security, without prior approval by plan administrator | 15.00% | ||||
Foreign Investments [Member] | Maximum [Member] | Investment Manager 1 [Member] | |||||
Defined Benefit Plan Disclosure [Line Items] | |||||
Defined benefit plan, target allocation percentage of assets | 30.00% | 30.00% | |||
Foreign Investments [Member] | Maximum [Member] | Investment Manager 2 [Member] | |||||
Defined Benefit Plan Disclosure [Line Items] | |||||
Defined benefit plan, target allocation percentage of assets | 15.00% | 15.00% | |||
Fixed income securities [Member] | Minimum [Member] | Investment Manager 1 [Member] | |||||
Defined Benefit Plan Disclosure [Line Items] | |||||
Defined benefit plan, target allocation percentage of assets | 5.00% | 5.00% | |||
Fixed income securities [Member] | Minimum [Member] | Investment Manager 2 [Member] | |||||
Defined Benefit Plan Disclosure [Line Items] | |||||
Defined benefit plan, target allocation percentage of assets | 10.00% | 10.00% | |||
Single Equity Concentration [Member] | |||||
Defined Benefit Plan 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 | $ 853,300 | $ 853,300 | $ 945,600 | ||
Percentage of total plan assets | 35.00% | 35.00% | 45.00% | ||
Single Equity Concentration [Member] | Equity Securities [Member] | |||||
Defined Benefit Plan Disclosure [Line Items] | |||||
Number of investments the company's pension plan held which individually exceed 10% of total plan assets | Investment | 1 | 1 | 1 | ||
Single Equity Concentration [Member] | Equity Funds [Member] | |||||
Defined Benefit Plan Disclosure [Line Items] | |||||
Number of investments the company's pension plan held which individually exceed 10% of total plan assets | Investment | 1 | 1 | 1 | ||
Concentration In Single Entity, Type Of Industry, Foreign Country Or Individual Fund [Member] | Defined Benefit Plan Assets Total [Member] | |||||
Defined Benefit Plan Disclosure [Line Items] | |||||
Minimum percentage of plan assets considered as significant concentrations in pension plans | 10.00% | 10.00% | |||
Education [Member] | Separation Incentive Program [Member] | |||||
Defined Benefit Plan Disclosure [Line Items] | |||||
Special separation benefit expense | $ 6,400 |
Pension and Postretirement Pl_4
Pension and Postretirement Plans (Total Benefit/Cost) (Details 1) - USD ($) $ in Thousands | 3 Months Ended | 9 Months Ended | 12 Months Ended | ||||||||
Sep. 30, 2019 | Jun. 30, 2019 | Mar. 31, 2019 | Dec. 31, 2018 | Sep. 30, 2018 | Jun. 30, 2018 | Mar. 31, 2018 | Sep. 30, 2019 | Sep. 30, 2018 | Dec. 31, 2018 | Dec. 31, 2017 | |
Defined Benefit Plan Disclosure [Line Items] | |||||||||||
Net Periodic Cost (Benefit) | $ 5,142 | $ 4,963 | $ 5,221 | $ 4,491 | $ 4,473 | $ 4,317 | $ 4,940 | $ 15,326 | $ 13,730 | $ 18,221 | $ 18,687 |
Defined Benefit Pension Plan [Member] | |||||||||||
Defined Benefit Plan Disclosure [Line Items] | |||||||||||
Service cost | 5,142 | 4,473 | 15,326 | 13,730 | |||||||
Interest cost | 11,743 | 11,844 | 35,078 | 34,943 | |||||||
Expected return on assets | (30,832) | (31,969) | (91,955) | (97,251) | |||||||
Amortization of prior service cost (credit) | 824 | 36 | 2,058 | 114 | |||||||
Recognized actuarial loss (gain) | 0 | (2,974) | 0 | (6,994) | |||||||
Net Periodic Cost (Benefit) | (13,123) | (18,590) | (39,493) | (55,458) | |||||||
Curtailment gain | 0 | 0 | 0 | (806) | |||||||
Special separation benefit expense | (175) | 0 | 6,432 | 0 | |||||||
Net Periodic Cost (Benefit) | (13,298) | (18,590) | (33,061) | (56,264) | |||||||
Supplemental Executive Retirement Plan (SERP) [Member] | |||||||||||
Defined Benefit Plan Disclosure [Line Items] | |||||||||||
Service cost | 214 | 205 | 643 | 614 | |||||||
Interest cost | 1,079 | 967 | 3,236 | 2,899 | |||||||
Amortization of prior service cost (credit) | 85 | 77 | 254 | 233 | |||||||
Recognized actuarial loss (gain) | 579 | 600 | 1,736 | 1,802 | |||||||
Net Periodic Cost (Benefit) | 1,957 | 1,849 | 5,869 | 5,548 | |||||||
Other Postretirement Plans [Member] | |||||||||||
Defined Benefit Plan Disclosure [Line Items] | |||||||||||
Service cost | 0 | 267 | 0 | 803 | |||||||
Interest cost | 72 | 170 | 216 | 509 | |||||||
Amortization of prior service cost (credit) | (1,841) | (44) | (5,522) | (132) | |||||||
Recognized actuarial loss (gain) | (1,090) | (921) | (3,270) | (2,764) | |||||||
Net Periodic Cost (Benefit) | $ (2,859) | $ (528) | $ (8,576) | $ (1,584) |
Pension and Postretirement Pl_5
Pension and Postretirement Plans (Asset Allocation) (Details 2) - Defined Benefit Pension Plans [Member] | Sep. 30, 2019 | Dec. 31, 2018 |
Defined Benefit Plan Disclosure [Line Items] | ||
Defined Benefit Plan Assets Allocation (Percent) | 100.00% | 100.00% |
U.S. equities [Member] | ||
Defined Benefit Plan Disclosure [Line Items] | ||
Defined Benefit Plan Assets Allocation (Percent) | 55.00% | 53.00% |
U.S. stock index fund [Member] | ||
Defined Benefit Plan Disclosure [Line Items] | ||
Defined Benefit Plan Assets Allocation (Percent) | 21.00% | 28.00% |
U.S. fixed income [Member] | ||
Defined Benefit Plan Disclosure [Line Items] | ||
Defined Benefit Plan Assets Allocation (Percent) | 17.00% | 13.00% |
International equities [Member] | ||
Defined Benefit Plan Disclosure [Line Items] | ||
Defined Benefit Plan Assets Allocation (Percent) | 7.00% | 6.00% |
Other Non-Operating Income (Nar
Other Non-Operating Income (Narrative) (Details) $ in Thousands | 3 Months Ended | 9 Months Ended | ||||
Sep. 30, 2019USD ($) | Mar. 31, 2019USD ($) | Sep. 30, 2018USD ($) | Mar. 31, 2018USD ($) | Sep. 30, 2019USD ($) | Sep. 30, 2018USD ($)business | |
Schedule of Non-Operating Income (Expense) [Line Items] | ||||||
Gain on cost method investments | $ 3,669 | $ 1,300 | $ 8,487 | $ 5,080 | $ 8,487 | |
Gain on sale of equity affiliate | 0 | 0 | 28,994 | 0 | ||
Gain on sales of businesses | 486 | 916 | 907 | 8,157 | ||
Education [Member] | ||||||
Schedule of Non-Operating Income (Expense) [Line Items] | ||||||
Gain on sales of businesses | $ 8,200 | |||||
Number of businesses disposed | business | 3 | |||||
Gimlet Media [Member] | ||||||
Schedule of Non-Operating Income (Expense) [Line Items] | ||||||
Gain on sale of equity affiliate | $ 29,000 | |||||
Higher Education [Member] | Education [Member] | Kaplan University Transaction [Member] | ||||||
Schedule of Non-Operating Income (Expense) [Line Items] | ||||||
Gain on sales of businesses | $ 4,300 | $ 4,300 | ||||
Gain Related to Contingent Consideration | $ 500 | $ 500 | $ 900 | $ 1,900 |
Other Non-Operating Income (Det
Other Non-Operating Income (Details 1) - USD ($) $ in Thousands | 3 Months Ended | 9 Months Ended | 12 Months Ended | ||||||||
Sep. 30, 2019 | Jun. 30, 2019 | Mar. 31, 2019 | Dec. 31, 2018 | Sep. 30, 2018 | Jun. 30, 2018 | Mar. 31, 2018 | Sep. 30, 2019 | Sep. 30, 2018 | Dec. 31, 2018 | Dec. 31, 2017 | |
Other Nonoperating Income (Expense) [Abstract] | |||||||||||
Gain on sale of equity affiliate | $ 0 | $ 0 | $ 28,994 | $ 0 | |||||||
Gain on cost method investments | 3,669 | $ 1,300 | 8,487 | 5,080 | 8,487 | ||||||
Foreign currency gain (loss), net | 661 | (116) | 1,284 | (2,205) | |||||||
Impairment of a cost method investment | 0 | (2,500) | 0 | (2,500) | |||||||
Gain on sales of businesses | 486 | 916 | 907 | 8,157 | |||||||
Gain on sale of cost method investments | 259 | 0 | 259 | 2,845 | |||||||
(Loss) gain on sale of property, plant and equipment | (38) | 0 | (82) | 2,542 | |||||||
Other gain (loss), net | 519 | (3,645) | (307) | (2,664) | |||||||
Total Other Non-Operating Income | $ 5,556 | $ 1,228 | $ 29,351 | $ (12,559) | $ 3,142 | $ 2,333 | $ 9,187 | $ 36,135 | $ 14,662 | $ 2,103 | $ 4,241 |
Accumulated Other Comprehensi_3
Accumulated Other Comprehensive Income (Loss) (Components of OCI) (Details 1) - USD ($) $ in Thousands | 3 Months Ended | 9 Months Ended | |||||||
Sep. 30, 2019 | Jun. 30, 2019 | Mar. 31, 2019 | Sep. 30, 2018 | Jun. 30, 2018 | Mar. 31, 2018 | Sep. 30, 2019 | Sep. 30, 2018 | ||
Other Comprehensive Income (Loss) [Line Items] | |||||||||
Other Comprehensive Income (Loss), before tax | $ (18,604) | $ (6,076) | $ (23,403) | $ (29,587) | |||||
Other Comprehensive Income (Loss), income tax | 518 | 874 | 1,512 | 1,976 | |||||
Other Comprehensive Income (Loss), Net of Tax | (18,086) | $ (12,095) | $ 8,290 | (5,202) | $ (33,221) | $ 10,812 | (21,891) | (27,611) | |
Foreign Currency Translation Adjustment [Member] | |||||||||
Other Comprehensive Income (Loss) [Line Items] | |||||||||
Other Comprehensive Income (Loss), before Reclassifications, Net of Tax | (17,755) | ||||||||
Reclassification from Accumulated Other Comprehensive Income, Current Period, Net of Tax | 0 | ||||||||
Other Comprehensive Income (Loss), before tax | (16,684) | (2,844) | (17,755) | (22,447) | |||||
Other Comprehensive Income (Loss), income tax | 0 | 0 | 0 | 0 | |||||
Other Comprehensive Income (Loss), Net of Tax | (16,684) | (2,844) | (17,755) | (22,447) | |||||
Pension and Other Postretirement Plans [Member] | |||||||||
Other Comprehensive Income (Loss) [Line Items] | |||||||||
Other Comprehensive Income (Loss), before Reclassifications, Net of Tax | 0 | ||||||||
Reclassification from Accumulated Other Comprehensive Income, Current Period, before Tax | (1,443) | (3,226) | (4,744) | (7,741) | |||||
Reclassification from AOCI, Current Period, Tax | 390 | 873 | 1,281 | 2,090 | |||||
Reclassification from Accumulated Other Comprehensive Income, Current Period, Net of Tax | (1,053) | (2,353) | (3,463) | (5,651) | |||||
Other Comprehensive Income (Loss), before tax | (1,443) | (3,226) | (4,744) | (7,741) | |||||
Other Comprehensive Income (Loss), income tax | 390 | 873 | 1,281 | 2,090 | |||||
Other Comprehensive Income (Loss), Net of Tax | (1,053) | (2,353) | (3,463) | (5,651) | |||||
Net Prior Service (Credit) Cost [Member] | |||||||||
Other Comprehensive Income (Loss) [Line Items] | |||||||||
Reclassification from Accumulated Other Comprehensive Income, Current Period, before Tax | [1] | (932) | 69 | (3,210) | 215 | ||||
Reclassification from AOCI, Current Period, Tax | 252 | (18) | 867 | (58) | |||||
Reclassification from Accumulated Other Comprehensive Income, Current Period, Net of Tax | (680) | 51 | (2,343) | 157 | |||||
Net Actuarial Gain [Member] | |||||||||
Other Comprehensive Income (Loss) [Line Items] | |||||||||
Reclassification from Accumulated Other Comprehensive Income, Current Period, before Tax | [1] | (511) | (3,295) | (1,534) | (7,956) | ||||
Reclassification from AOCI, Current Period, Tax | 138 | 891 | 414 | 2,148 | |||||
Reclassification from Accumulated Other Comprehensive Income, Current Period, Net of Tax | (373) | (2,404) | (1,120) | (5,808) | |||||
Cash Flow Hedges [Member] | |||||||||
Other Comprehensive Income (Loss) [Line Items] | |||||||||
Other Comprehensive Income (Loss), before Reclassifications, Net of Tax | (562) | ||||||||
Reclassification from Accumulated Other Comprehensive Income, Current Period, Net of Tax | (111) | ||||||||
Other Comprehensive Income (Loss), before tax | (477) | (6) | (904) | 601 | |||||
Other Comprehensive Income (Loss), income tax | 128 | 1 | 231 | (114) | |||||
Other Comprehensive Income (Loss), Net of Tax | $ (349) | $ (5) | $ (673) | $ 487 | |||||
[1] | These accumulated other comprehensive income components are components of net periodic pension and postretirement plan cost (see Note 12) and are included in non-operating pension and postretirement benefit income in the Company’s Condensed Consolidated Statements of Operations. |
Accumulated Other Comprehensi_4
Accumulated Other Comprehensive Income (Loss) (AOCI balances) (Details 2) - USD ($) $ in Thousands | 3 Months Ended | 9 Months Ended | ||||||
Sep. 30, 2019 | Jun. 30, 2019 | Mar. 31, 2019 | Sep. 30, 2018 | Jun. 30, 2018 | Mar. 31, 2018 | Sep. 30, 2019 | Sep. 30, 2018 | |
AOCI Including Portion Attributable to Noncontrolling Interest, Net of Tax [Roll Forward] | ||||||||
As of | $ 3,038,854 | $ 2,999,536 | $ 2,916,782 | $ 2,876,864 | $ 2,884,388 | $ 2,915,145 | $ 2,916,782 | $ 2,915,145 |
Other Comprehensive Loss, Net of Tax | (18,086) | (12,095) | 8,290 | (5,202) | (33,221) | 10,812 | (21,891) | (27,611) |
As of | 3,058,911 | $ 3,038,854 | 2,999,536 | 2,974,831 | $ 2,876,864 | $ 2,884,388 | 3,058,911 | 2,974,831 |
AOCI Including Portion Attributable to Noncontrolling Interest [Member] | ||||||||
AOCI Including Portion Attributable to Noncontrolling Interest, Net of Tax [Roll Forward] | ||||||||
As of | 203,829 | 203,829 | ||||||
Other comprehensive loss before reclassifications | (18,317) | |||||||
Net amount reclassified from accumulated other comprehensive income (loss) | (3,574) | |||||||
Other Comprehensive Loss, Net of Tax | (21,891) | |||||||
As of | 181,938 | 181,938 | ||||||
Cumulative Foreign Currency Translation Adjustment [Member] | ||||||||
AOCI Including Portion Attributable to Noncontrolling Interest, Net of Tax [Roll Forward] | ||||||||
As of | (29,270) | (29,270) | ||||||
Other comprehensive loss before reclassifications | (17,755) | |||||||
Net amount reclassified from accumulated other comprehensive income (loss) | 0 | |||||||
Other Comprehensive Loss, Net of Tax | (16,684) | (2,844) | (17,755) | (22,447) | ||||
As of | (47,025) | (47,025) | ||||||
Unrealized Gain on Pensions and Other Postretirement Plans [Member] | ||||||||
AOCI Including Portion Attributable to Noncontrolling Interest, Net of Tax [Roll Forward] | ||||||||
As of | 232,836 | 232,836 | ||||||
Other comprehensive loss before reclassifications | 0 | |||||||
Net amount reclassified from accumulated other comprehensive income (loss) | (1,053) | (2,353) | (3,463) | (5,651) | ||||
Other Comprehensive Loss, Net of Tax | (1,053) | (2,353) | (3,463) | (5,651) | ||||
As of | 229,373 | 229,373 | ||||||
Cash Flow Hedges [Member] | ||||||||
AOCI Including Portion Attributable to Noncontrolling Interest, Net of Tax [Roll Forward] | ||||||||
As of | $ 263 | 263 | ||||||
Other comprehensive loss before reclassifications | (562) | |||||||
Net amount reclassified from accumulated other comprehensive income (loss) | (111) | |||||||
Other Comprehensive Loss, Net of Tax | (349) | $ (5) | (673) | $ 487 | ||||
As of | $ (410) | $ (410) |
Accumulated Other Comprehensi_5
Accumulated Other Comprehensive Income (Loss) (Reclassifications out of AOCI) (Details 3) - USD ($) $ in Thousands | 3 Months Ended | 9 Months Ended | |||||||
Sep. 30, 2019 | Jun. 30, 2019 | Mar. 31, 2019 | Sep. 30, 2018 | Jun. 30, 2018 | Mar. 31, 2018 | Sep. 30, 2019 | Sep. 30, 2018 | ||
Reclassification Adjustment Out Of Accumulated Other Comprehensive Income [Line Items] | |||||||||
Interest expense | $ 6,776 | $ 6,135 | $ 22,587 | $ 31,371 | |||||
Provision for Income Taxes | 15,200 | 10,000 | 59,500 | 39,700 | |||||
Net of Tax | (42,965) | $ (57,195) | $ (81,702) | (125,070) | $ (46,635) | $ (42,965) | (181,862) | (214,670) | |
Reclassification out of Accumulated Other Comprehensive Income [Member] | |||||||||
Reclassification Adjustment Out Of Accumulated Other Comprehensive Income [Line Items] | |||||||||
Net of Tax | (1,066) | (2,401) | (3,574) | (5,733) | |||||
Foreign Currency Translation Adjustment [Member] | |||||||||
Reclassification Adjustment Out Of Accumulated Other Comprehensive Income [Line Items] | |||||||||
Reclassifications, net of tax | 0 | ||||||||
Pension and Other Postretirement Plans [Member] | |||||||||
Reclassification Adjustment Out Of Accumulated Other Comprehensive Income [Line Items] | |||||||||
Reclassifications, before tax | (1,443) | (3,226) | (4,744) | (7,741) | |||||
Provision for Income Tax | 390 | 873 | 1,281 | 2,090 | |||||
Reclassifications, net of tax | (1,053) | (2,353) | (3,463) | (5,651) | |||||
Net Prior Service (Credit) Cost [Member] | |||||||||
Reclassification Adjustment Out Of Accumulated Other Comprehensive Income [Line Items] | |||||||||
Reclassifications, before tax | [1] | (932) | 69 | (3,210) | 215 | ||||
Provision for Income Tax | 252 | (18) | 867 | (58) | |||||
Reclassifications, net of tax | (680) | 51 | (2,343) | 157 | |||||
Net Actuarial Gain [Member] | |||||||||
Reclassification Adjustment Out Of Accumulated Other Comprehensive Income [Line Items] | |||||||||
Reclassifications, before tax | [1] | (511) | (3,295) | (1,534) | (7,956) | ||||
Provision for Income Tax | 138 | 891 | 414 | 2,148 | |||||
Reclassifications, net of tax | (373) | (2,404) | (1,120) | (5,808) | |||||
Cash Flow Hedges [Member] | |||||||||
Reclassification Adjustment Out Of Accumulated Other Comprehensive Income [Line Items] | |||||||||
Reclassifications, net of tax | (111) | ||||||||
Cash Flow Hedges [Member] | Reclassification out of Accumulated Other Comprehensive Income [Member] | |||||||||
Reclassification Adjustment Out Of Accumulated Other Comprehensive Income [Line Items] | |||||||||
Interest expense | (24) | (59) | (151) | (101) | |||||
Provision for Income Taxes | 11 | 11 | 40 | 19 | |||||
Net of Tax | $ (13) | $ (48) | $ (111) | $ (82) | |||||
[1] | These accumulated other comprehensive income components are components of net periodic pension and postretirement plan cost (see Note 12) and are included in non-operating pension and postretirement benefit income in the Company’s Condensed Consolidated Statements of Operations. |
Contingencies and Regulatory _2
Contingencies and Regulatory Matters (Details) $ in Thousands, £ in Millions | 3 Months Ended | 6 Months Ended | ||
Sep. 30, 2019GBP (£) | Dec. 31, 2018USD ($) | Sep. 30, 2019USD ($)claimprogram_review | Sep. 30, 2019GBP (£)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 | ||
Deferred Charges and Other Assets | $ | $ 117,830 | $ 129,451 | ||
Maximum [Member] | ||||
Loss Contingencies [Line Items] | ||||
Loss contingency, estimate of possible loss | $ | $ 15,000 | |||
Sale of KHE Campuses business [Member] | ||||
Loss Contingencies [Line Items] | ||||
Loss on Guarantor Lease Obligations | $ | $ 17,500 | |||
Education [Member] | Sale of KHE Campuses business [Member] | Higher Education [Member] | ||||
Loss Contingencies [Line Items] | ||||
Number of finalized program reviews | program_review | 2 | 2 | ||
Her Majesty's Revenue and Customs (HMRC) [Member] | UK Pathways [Member] | Kaplan International [Member] | ||||
Loss Contingencies [Line Items] | ||||
Amount Paid Entitled To Recover | £ | £ 17.3 | |||
Loss Contingency, Loss in Period | £ | £ 17.3 | |||
Her Majesty's Revenue and Customs (HMRC) [Member] | UK Pathways [Member] | Kaplan International [Member] | 2014 to 2018 [Member] | ||||
Loss Contingencies [Line Items] | ||||
Loss Contingency, Loss in Period | £ | £ 14.1 |
Business Segments (Narrative) (
Business Segments (Narrative) (Details) | 9 Months Ended |
Sep. 30, 2019Segment | |
Business Segments [Line Items] | |
Number of reportable segments | 8 |
Business Segments (Information
Business Segments (Information by Operating Segment) (Details 1) - USD ($) $ in Thousands | 3 Months Ended | 9 Months Ended | 12 Months Ended | ||||||||
Sep. 30, 2019 | Jun. 30, 2019 | Mar. 31, 2019 | Dec. 31, 2018 | Sep. 30, 2018 | Jun. 30, 2018 | Mar. 31, 2018 | Sep. 30, 2019 | Sep. 30, 2018 | Dec. 31, 2018 | Dec. 31, 2017 | |
Segment Reporting Information [Line Items] | |||||||||||
Operating Revenues | $ 738,820 | $ 737,602 | $ 692,199 | $ 689,087 | $ 674,766 | $ 672,677 | $ 659,436 | $ 2,168,621 | $ 2,006,879 | $ 2,695,966 | $ 2,591,846 |
Income (Loss) from Operations | 16,268 | 57,963 | 40,003 | 75,582 | 60,739 | 65,626 | 44,214 | 114,234 | 170,579 | 246,161 | 136,403 |
Equity in earnings of affiliates, net | 4,683 | 1,467 | 1,679 | 1,426 | 9,537 | 931 | 2,579 | 7,829 | 13,047 | 14,473 | (3,249) |
Interest Expense, Net | (5,302) | (6,807) | (5,725) | (5,062) | (5,524) | (15,264) | (6,699) | (17,834) | (27,487) | (32,549) | (27,305) |
Debt Extinguishment Costs | 0 | 0 | 0 | (11,378) | 0 | 0 | (11,378) | (11,378) | 0 | ||
Non-operating pension and postretirement benefit income, net | 19,556 | 12,253 | 19,928 | 53,900 | 22,214 | 23,041 | 21,386 | 51,737 | 66,641 | 120,541 | 72,699 |
Gain on marketable equity securities, net | 17,404 | 7,791 | 24,066 | (44,149) | 44,962 | (2,554) | (14,102) | 49,261 | 28,306 | (15,843) | 0 |
Other income, net | 5,556 | 1,228 | 29,351 | (12,559) | 3,142 | 2,333 | 9,187 | 36,135 | 14,662 | 2,103 | 4,241 |
Income Before Income Taxes | 58,165 | 73,895 | 109,302 | 69,138 | 135,070 | 62,735 | 56,565 | 241,362 | 254,370 | 323,508 | 182,789 |
Depreciation of property, plant and equipment | 15,351 | 13,884 | 13,523 | 14,813 | 13,648 | 13,619 | 14,642 | 42,758 | 41,909 | 56,722 | 62,509 |
Amortization Of Intangible Assets and Impairment of Long-Lived Assets | 13,944 | 13,573 | 13,060 | 13,362 | 20,378 | 11,399 | 10,384 | 40,577 | 42,161 | 55,523 | 50,801 |
Amortization of Intangible Assets | 13,572 | 12,269 | 39,512 | 34,052 | |||||||
Impairment of long-lived assets | 372 | 8,109 | 1,065 | 8,109 | |||||||
Pension Service Cost | 5,142 | 4,963 | 5,221 | 4,491 | 4,473 | 4,317 | 4,940 | 15,326 | 13,730 | 18,221 | 18,687 |
Capital Expenditures | 98,067 | 57,080 | |||||||||
Identifiable Assets | 3,749,520 | 3,120,280 | 3,749,520 | 3,120,280 | |||||||
Marketable equity securities | 535,564 | 496,390 | 535,564 | 496,390 | |||||||
Investments in Affiliates | 163,986 | 143,813 | 163,986 | 143,813 | |||||||
Prepaid Pension Cost | 1,038,676 | 1,003,558 | 1,038,676 | 1,003,558 | |||||||
Total Assets | 5,487,746 | 4,764,041 | 5,487,746 | 4,764,041 | |||||||
Operating Segments [Member] | Education [Member] | |||||||||||
Segment Reporting Information [Line Items] | |||||||||||
Operating Revenues | 357,319 | 367,763 | 372,454 | 346,910 | 358,601 | 370,005 | 375,499 | 1,097,536 | 1,104,105 | 1,451,015 | 1,516,776 |
Income (Loss) from Operations | (7,161) | 26,305 | 25,595 | 14,620 | 22,262 | 37,554 | 22,700 | 44,739 | 82,516 | 97,136 | 77,687 |
Depreciation of property, plant and equipment | 6,258 | 6,137 | 6,201 | 6,969 | 6,685 | 6,839 | 7,606 | 18,596 | 21,130 | 28,099 | 32,906 |
Amortization Of Intangible Assets and Impairment of Long-Lived Assets | 3,944 | 4,070 | 3,567 | 3,868 | 2,682 | 1,663 | 1,149 | 11,581 | 5,494 | 9,362 | 5,162 |
Amortization of Intangible Assets | 3,944 | 2,682 | 10,888 | 5,494 | |||||||
Impairment of long-lived assets | 0 | 0 | 693 | 0 | |||||||
Pension Service Cost | 2,603 | 2,522 | 2,664 | 2,104 | 2,107 | 1,878 | 2,664 | 7,789 | 6,649 | 8,753 | 9,720 |
Capital Expenditures | 54,159 | 27,520 | |||||||||
Identifiable Assets | 1,925,819 | 1,568,747 | 1,925,819 | 1,568,747 | |||||||
Operating Segments [Member] | Education [Member] | Kaplan Corporate and Other [Member] | |||||||||||
Segment Reporting Information [Line Items] | |||||||||||
Operating Revenues | 2,450 | 143 | 7,121 | 870 | |||||||
Income (Loss) from Operations | (8,011) | (9,452) | (30,405) | (27,110) | |||||||
Depreciation of property, plant and equipment | 66 | 119 | 172 | 431 | |||||||
Pension Service Cost | 166 | 123 | 496 | 250 | |||||||
Identifiable Assets | 66,989 | 28,731 | 66,989 | 28,731 | |||||||
Operating Segments [Member] | Education [Member] | Reportable Subsegments [Member] | Kaplan International [Member] | |||||||||||
Segment Reporting Information [Line Items] | |||||||||||
Operating Revenues | 178,169 | 167,668 | 552,505 | 535,553 | |||||||
Income (Loss) from Operations | (14,226) | 8,375 | 35,596 | 52,966 | |||||||
Depreciation of property, plant and equipment | 3,600 | 3,759 | 11,198 | 11,497 | |||||||
Pension Service Cost | 114 | 66 | 341 | 233 | |||||||
Identifiable Assets | 1,336,238 | 1,101,040 | 1,336,238 | 1,101,040 | |||||||
Operating Segments [Member] | Education [Member] | Reportable Subsegments [Member] | Higher Education [Member] | |||||||||||
Segment Reporting Information [Line Items] | |||||||||||
Operating Revenues | 78,712 | 89,269 | 237,780 | 275,080 | |||||||
Income (Loss) from Operations | 5,177 | 6,042 | 9,813 | 18,616 | |||||||
Depreciation of property, plant and equipment | 840 | 915 | 2,066 | 4,047 | |||||||
Pension Service Cost | 1,136 | 1,050 | 3,401 | 3,260 | |||||||
Identifiable Assets | 202,553 | 126,752 | 202,553 | 126,752 | |||||||
Operating Segments [Member] | Education [Member] | Reportable Subsegments [Member] | Test Preparation [Member] | |||||||||||
Segment Reporting Information [Line Items] | |||||||||||
Operating Revenues | 64,710 | 67,749 | 191,533 | 195,504 | |||||||
Income (Loss) from Operations | 4,959 | 10,572 | 8,794 | 17,213 | |||||||
Depreciation of property, plant and equipment | 774 | 1,033 | 2,358 | 2,984 | |||||||
Pension Service Cost | 847 | 577 | 2,534 | 2,035 | |||||||
Identifiable Assets | 165,471 | 145,308 | 165,471 | 145,308 | |||||||
Operating Segments [Member] | Education [Member] | Reportable Subsegments [Member] | Professional (U.S.) [Member] | |||||||||||
Segment Reporting Information [Line Items] | |||||||||||
Operating Revenues | 33,820 | 34,302 | 110,181 | 98,715 | |||||||
Income (Loss) from Operations | 4,939 | 6,768 | 20,943 | 20,863 | |||||||
Depreciation of property, plant and equipment | 978 | 859 | 2,802 | 2,171 | |||||||
Pension Service Cost | 340 | 291 | 1,017 | 871 | |||||||
Identifiable Assets | 154,568 | 166,916 | 154,568 | 166,916 | |||||||
Operating Segments [Member] | Education [Member] | Intersubsegment Eliminations [Member] | |||||||||||
Segment Reporting Information [Line Items] | |||||||||||
Operating Revenues | (542) | (530) | (1,584) | (1,617) | |||||||
Income (Loss) from Operations | 1 | (43) | (2) | (32) | |||||||
Operating Segments [Member] | Television Broadcasting [Member] | |||||||||||
Segment Reporting Information [Line Items] | |||||||||||
Operating Revenues | 115,161 | 116,628 | 108,223 | 152,647 | 130,014 | 114,086 | 108,802 | 340,012 | 352,902 | 505,549 | 409,916 |
Income (Loss) from Operations | 36,813 | 44,494 | 35,540 | 73,420 | 55,453 | 41,118 | 40,542 | 116,847 | 137,113 | 210,533 | 139,258 |
Depreciation of property, plant and equipment | 3,307 | 3,293 | 3,239 | 3,961 | 3,198 | 2,974 | 3,071 | 9,839 | 9,243 | 13,204 | 12,179 |
Amortization Of Intangible Assets and Impairment of Long-Lived Assets | 1,408 | 1,408 | 1,408 | 1,408 | 1,408 | 1,408 | 1,408 | 4,224 | 4,224 | 5,632 | 6,349 |
Pension Service Cost | 762 | 780 | 731 | 550 | 544 | 601 | 493 | 2,273 | 1,638 | 2,188 | 1,942 |
Capital Expenditures | 27,013 | 16,802 | |||||||||
Identifiable Assets | 470,915 | 452,853 | 470,915 | 452,853 | |||||||
Operating Segments [Member] | Manufacturing [Member] | |||||||||||
Segment Reporting Information [Line Items] | |||||||||||
Operating Revenues | 111,676 | 114,873 | 115,157 | 117,723 | 126,028 | 126,462 | 117,406 | 341,706 | 369,896 | 487,619 | 414,193 |
Income (Loss) from Operations | 6,845 | 4,692 | 3,274 | 6,412 | 5,146 | 8,665 | 8,628 | 14,811 | 22,439 | 28,851 | 14,947 |
Depreciation of property, plant and equipment | 2,671 | 2,384 | 2,433 | 2,400 | 2,333 | 2,331 | 2,451 | 7,488 | 7,115 | 9,515 | 9,173 |
Amortization Of Intangible Assets and Impairment of Long-Lived Assets | 6,522 | 6,528 | 6,530 | 6,530 | 6,345 | 5,935 | 5,936 | 19,580 | 18,216 | 24,746 | 31,052 |
Pension Service Cost | 20 | 15 | 25 | 18 | 18 | 19 | 17 | 60 | 54 | 72 | 79 |
Capital Expenditures | 14,806 | 8,012 | |||||||||
Identifiable Assets | 577,244 | 593,111 | 577,244 | 593,111 | |||||||
Operating Segments [Member] | Healthcare [Member] | |||||||||||
Segment Reporting Information [Line Items] | |||||||||||
Operating Revenues | 40,688 | 40,641 | 37,728 | 37,960 | 35,486 | 38,208 | 37,621 | 119,057 | 111,315 | 149,275 | 154,202 |
Income (Loss) from Operations | 1,208 | 2,598 | 2,329 | 928 | (8,702) | 764 | (1,391) | 6,135 | (9,329) | (8,401) | (2,569) |
Depreciation of property, plant and equipment | 566 | 607 | 610 | 629 | 648 | 647 | 653 | 1,783 | 1,948 | 2,577 | 4,583 |
Amortization Of Intangible Assets and Impairment of Long-Lived Assets | 1,914 | 1,410 | 1,398 | 1,399 | 9,839 | 1,809 | 1,808 | 4,722 | 13,456 | 14,855 | 7,905 |
Pension Service Cost | 123 | 63 | 183 | 143 | 143 | 165 | 122 | 369 | 430 | 573 | 665 |
Capital Expenditures | 1,741 | 2,987 | |||||||||
Identifiable Assets | 132,068 | 108,596 | 132,068 | 108,596 | |||||||
Operating Segments [Member] | SocialCode [Member] | |||||||||||
Segment Reporting Information [Line Items] | |||||||||||
Operating Revenues | 15,975 | 16,382 | 13,447 | 16,878 | 13,781 | 14,770 | 13,299 | 45,804 | 41,850 | 58,728 | 62,077 |
Income (Loss) from Operations | (378) | (975) | (4,018) | (682) | 5,124 | (1,742) | (3,781) | (5,371) | (399) | (1,081) | (3,674) |
Depreciation of property, plant and equipment | 356 | 384 | 152 | 177 | 187 | 200 | 233 | 892 | 620 | 797 | 1,004 |
Amortization Of Intangible Assets and Impairment of Long-Lived Assets | 156 | 157 | 157 | 157 | 104 | 584 | 83 | 470 | 771 | 928 | 333 |
Pension Service Cost | 219 | 191 | 248 | 181 | 181 | 205 | 156 | 658 | 542 | 723 | 593 |
Capital Expenditures | 113 | 756 | |||||||||
Identifiable Assets | 238,253 | 213,394 | 238,253 | 213,394 | |||||||
Operating Segments [Member] | Other Businesses [Member] | |||||||||||
Segment Reporting Information [Line Items] | |||||||||||
Operating Revenues | 98,225 | 81,359 | 45,230 | 17,024 | 10,856 | 9,167 | 6,833 | 224,814 | 26,856 | 43,880 | 34,733 |
Income (Loss) from Operations | (9,029) | (5,913) | (8,493) | (5,840) | (5,657) | (7,977) | (8,542) | (23,435) | (22,176) | (28,016) | (30,536) |
Depreciation of property, plant and equipment | 1,974 | 837 | 648 | 428 | 345 | 375 | 375 | 3,459 | 1,095 | 1,523 | 1,546 |
Amortization Of Intangible Assets and Impairment of Long-Lived Assets | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 |
Pension Service Cost | 215 | 161 | 201 | 161 | 147 | 154 | 116 | 577 | 417 | 578 | 453 |
Capital Expenditures | 235 | 1,003 | |||||||||
Identifiable Assets | 333,720 | 20,608 | 333,720 | 20,608 | |||||||
Corporate Office [Member] | |||||||||||
Segment Reporting Information [Line Items] | |||||||||||
Operating Revenues | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 |
Income (Loss) from Operations | (12,030) | (13,238) | (14,224) | (13,276) | (12,887) | (12,756) | (13,942) | (39,492) | (39,585) | (52,861) | (58,710) |
Depreciation of property, plant and equipment | 219 | 242 | 240 | 249 | 252 | 253 | 253 | 701 | 758 | 1,007 | 1,118 |
Amortization Of Intangible Assets and Impairment of Long-Lived Assets | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 |
Pension Service Cost | 1,200 | 1,231 | 1,169 | 1,334 | 1,333 | 1,295 | 1,372 | 3,600 | 4,000 | 5,334 | 5,235 |
Capital Expenditures | 0 | 0 | |||||||||
Identifiable Assets | 71,501 | 162,971 | 71,501 | 162,971 | |||||||
Intersegment Elimination [Member] | |||||||||||
Segment Reporting Information [Line Items] | |||||||||||
Operating Revenues | $ (224) | $ (44) | $ (40) | $ (55) | $ 0 | $ (21) | $ (24) | $ (308) | $ (45) | $ (100) | $ (51) |
Uncategorized Items - a2019q310
Label | Element | Value |
Cumulative Effect of New Accounting Principle in Period of Adoption | us-gaap_CumulativeEffectOfNewAccountingPrincipleInPeriodOfAdoption | $ 6,923,000 |
Retained Earnings [Member] | ||
Cumulative Effect of New Accounting Principle in Period of Adoption | us-gaap_CumulativeEffectOfNewAccountingPrincipleInPeriodOfAdoption | 201,812,000 |
AOCI Attributable to Parent [Member] | ||
Cumulative Effect of New Accounting Principle in Period of Adoption | us-gaap_CumulativeEffectOfNewAccountingPrincipleInPeriodOfAdoption | $ (194,889,000) |