Cover Page
Cover Page - shares | 3 Months Ended | |
Mar. 31, 2021 | Apr. 30, 2021 | |
Document Type | 10-Q | |
Document Quarterly Report | true | |
Document Period End Date | Mar. 31, 2021 | |
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 $1.00 per share | |
Trading Symbol | GHC | |
Security Exchange Name | NYSE | |
Entity Current Reporting Status | Yes | |
Entity Interactive Data Current | Yes | |
Entity Filer Category | Large Accelerated Filer | |
Entity Small Business | false | |
Entity Emerging Growth Company | false | |
Entity Shell Company | false | |
Entity Central Index Key | 0000104889 | |
Current Fiscal Year End Date | --12-31 | |
Document Fiscal Year Focus | 2021 | |
Document Fiscal Period Focus | Q1 | |
Amendment Flag | false | |
Class A Common Stock [Member] | ||
Entity Common Stock, Shares Outstanding | 964,001 | |
Class B Common Stock [Member] | ||
Entity Common Stock, Shares Outstanding | 4,037,648 |
Condensed Consolidated Statemen
Condensed Consolidated Statements of Operations (Unaudited) - USD ($) shares in Thousands, $ in Thousands | 3 Months Ended | |
Mar. 31, 2021 | Mar. 31, 2020 | |
Operating Revenues | ||
Operating Revenues | $ 712,455 | $ 732,257 |
Operating Costs and Expenses | ||
Selling, general and administrative | 175,861 | 177,152 |
Depreciation of property, plant and equipment | 16,545 | 16,704 |
Amortization of intangible assets | 13,937 | 14,165 |
Impairment of goodwill and other long-lived assets | 1,047 | 16,401 |
Total Operating Costs and Expenses | 678,611 | 724,172 |
Income from Operations | 33,844 | 8,085 |
Equity in earnings (losses) of affiliates, net | 13,428 | (1,547) |
Interest income | 890 | 1,151 |
Interest expense | (8,448) | (7,678) |
Non-operating pension and postretirement benefit income, net | 28,787 | 18,403 |
Gain (loss) on marketable equity securities, net | 79,214 | (100,393) |
Other income, net | 6,320 | 2,688 |
Income (Loss) Before Income Taxes | 154,035 | (79,291) |
Provision for (Benefit from) Income Taxes | 41,400 | (45,400) |
Net Income (Loss) | 112,635 | (33,891) |
Net (Income) Loss Attributable to Noncontrolling Interests | (185) | 646 |
Net Income (Loss) Attributable to Graham Holdings Company Common Stockholders | $ 112,450 | $ (33,245) |
Per Share Information Attributable to Graham Holdings Company Common Stockholders | ||
Basic income (loss) per common share (in usd per share) | $ 22.49 | $ (6.32) |
Basic average number of common shares outstanding (in shares) | 4,967 | 5,274 |
Diluted net income (loss) per common share (in USD per share) | $ 22.44 | $ (6.32) |
Diluted average number of common shares outstanding (in shares) | 4,977 | 5,274 |
Services [Member] | ||
Operating Revenues | ||
Operating Revenues | $ 483,669 | $ 516,637 |
Operating Costs and Expenses | ||
Cost of services and goods | 292,434 | 333,049 |
Goods [Member] | ||
Operating Revenues | ||
Operating Revenues | 228,786 | 215,620 |
Operating Costs and Expenses | ||
Cost of services and goods | $ 178,787 | $ 166,701 |
Condensed Consolidated Statem_2
Condensed Consolidated Statements of Comprehensive Income (Loss) (Unaudited) - USD ($) $ in Thousands | 3 Months Ended | |
Mar. 31, 2021 | Mar. 31, 2020 | |
Statement of Comprehensive Income [Abstract] | ||
Net Income (Loss) | $ 112,635 | $ (33,891) |
Foreign currency translation adjustments: | ||
Translation adjustments arising during the period | (486) | (37,376) |
Pension and other postretirement plans: | ||
Amortization of net prior service cost included in net income | 792 | 671 |
Amortization of net actuarial (gain) loss included in net income | (2,429) | 220 |
Total pension and other postretirement plans, before tax | (1,637) | 891 |
Cash flow hedges gain (loss) | 621 | (1,578) |
Other Comprehensive Loss, Before Tax | (1,502) | (38,063) |
Income tax benefit related to items of other comprehensive loss | 299 | 120 |
Other Comprehensive Loss, Net of Tax | (1,203) | (37,943) |
Comprehensive Income (Loss) | 111,432 | (71,834) |
Comprehensive (income) loss attributable to noncontrolling interests | (185) | 646 |
Total Comprehensive Income (Loss) Attributable to Graham Holdings Company | $ 111,247 | $ (71,188) |
Condensed Consolidated Balance
Condensed Consolidated Balance Sheets - USD ($) $ in Thousands | Mar. 31, 2021 | Dec. 31, 2020 |
Current Assets | ||
Cash and cash equivalents | $ 350,135 | $ 413,991 |
Restricted cash | 22,484 | 9,063 |
Investments in marketable equity securities and other investments | 715,580 | 587,582 |
Accounts receivable, net | 515,220 | 537,156 |
Inventories and contracts in progress | 132,136 | 120,622 |
Prepaid expenses | 85,119 | 75,523 |
Income taxes receivable | 15,339 | 29,313 |
Other current assets | 1,427 | 942 |
Total Current Assets | 1,837,440 | 1,774,192 |
Property, Plant and Equipment, Net | 375,862 | 378,286 |
Lease Right-of-Use Assets | 453,193 | 462,560 |
Investments in Affiliates | 169,203 | 155,777 |
Goodwill, Net | 1,485,137 | 1,484,750 |
Indefinite-Lived Intangible Assets | 121,050 | 120,437 |
Amortized Intangible Assets, Net | 190,041 | 204,646 |
Prepaid Pension Cost | 1,730,625 | 1,708,305 |
Deferred Income Taxes | 7,651 | 8,396 |
Deferred Charges and Other Assets | 148,218 | 146,770 |
Total Assets | 6,518,420 | 6,444,119 |
Current Liabilities | ||
Accounts payable and accrued liabilities | 492,625 | 520,236 |
Deferred revenue | 331,678 | 331,021 |
Income taxes payable | 6,891 | 5,140 |
Current portion of lease liabilities | 84,749 | 86,797 |
Current portion of long-term debt | 4,238 | 6,452 |
Dividends declared | 7,553 | 0 |
Total Current Liabilities | 927,734 | 949,646 |
Accrued Compensation and Related Benefits | 196,558 | 201,918 |
Other Liabilities | 36,591 | 48,768 |
Deferred Income Taxes | 549,418 | 521,274 |
Mandatorily Redeemable Noncontrolling Interest | 10,272 | 9,240 |
Lease Liabilities | 419,131 | 428,849 |
Long-Term Debt | 506,091 | 506,103 |
Total Liabilities | 2,645,795 | 2,665,798 |
Redeemable Noncontrolling Interests | 7,786 | 11,928 |
Preferred Stock | 0 | 0 |
Common Stockholders’ Equity | ||
Common stock | 20,000 | 20,000 |
Capital in excess of par value | 385,257 | 388,159 |
Retained earnings | 6,902,166 | 6,804,822 |
Accumulated other comprehensive income, net of taxes | ||
Cumulative foreign currency translation adjustment | 9,268 | 9,754 |
Unrealized gain on pensions and other postretirement plans | 594,093 | 595,287 |
Cash flow hedges | (1,250) | (1,727) |
Cost of Class B common stock held in treasury | (4,051,909) | (4,056,993) |
Total Common Stockholders’ Equity | 3,857,625 | 3,759,302 |
Noncontrolling Interests | 7,214 | 7,091 |
Total Equity | 3,864,839 | 3,766,393 |
Total Liabilities and Equity | $ 6,518,420 | $ 6,444,119 |
Condensed Consolidated Statem_3
Condensed Consolidated Statements of Cash Flows (Unaudited) - USD ($) | 3 Months Ended | |
Mar. 31, 2021 | Mar. 31, 2020 | |
Cash Flows from Operating Activities | ||
Net Income (Loss) | $ 112,635,000 | $ (33,891,000) |
Adjustments to reconcile net income to net cash provided by operating activities: | ||
Depreciation, amortization and goodwill and other long-lived asset impairments | 31,529,000 | 47,270,000 |
Amortization of lease right-of-use asset | 18,594,000 | 23,749,000 |
Net pension benefit | (24,501,000) | (13,784,000) |
(Gain) loss on marketable equity securities and cost method investments, net | (81,937,000) | 100,393,000 |
(Gain) loss on disposition and write-down of businesses, property, plant and equipment and investments, net | (240,000) | 2,761,000 |
Provision for doubtful trade receivables | 1,126,000 | 2,429,000 |
Stock-based compensation expense, net | 1,485,000 | 1,568,000 |
Foreign exchange gain | (3,000) | (4,290,000) |
Write-down of cost method investments | 0 | 2,577,000 |
Equity in (earnings) losses of affiliates, net of distributions | (11,241,000) | 1,547,000 |
Provision for (benefit from) deferred income taxes | 29,311,000 | (21,550,000) |
Change in operating assets and liabilities: | ||
Accounts receivable, net | 25,196,000 | 100,732,000 |
Inventories | (11,493,000) | (8,512,000) |
Accounts payable and accrued liabilities | (29,965,000) | (97,476,000) |
Deferred revenue | (6,655,000) | (12,790,000) |
Income taxes receivable | 10,860,000 | (27,774,000) |
Lease liabilitites | (21,119,000) | (22,503,000) |
Other assets and other liabilities, net | (20,881,000) | (24,980,000) |
Other | 1,298,000 | (496,000) |
Net Cash Provided by Operating Activities | 23,999,000 | 12,403,000 |
Cash Flows from Investing Activities | ||
Purchases of marketable equity securities | (48,036,000) | 0 |
Purchases of property, plant and equipment | (13,113,000) | (25,235,000) |
Investments in equity affiliates, cost method and other investments | (2,415,000) | (7,427,000) |
Net proceeds from disposition of businesses, property, plant and equipment and investments | 270,000 | 218,000 |
Proceeds from sales of marketable equity securities | 0 | 48,016,000 |
Investments in certain businesses, net of cash acquired | 0 | (6,011,000) |
Other | 4,000 | 0 |
Net Cash (Used in) Provided by Investing Activities | (63,290,000) | 9,561,000 |
Cash Flows from Financing Activities | ||
Dividends paid | (7,553,000) | (7,703,000) |
Purchase of noncontrolling interest | (3,508,000) | 0 |
Proceeds from bank overdrafts | 3,212,000 | 9,062,000 |
Net proceeds from vehicle floor plan payable | 2,462,000 | 2,478,000 |
Net payments under revolving credit facilities | (2,223,000) | 0 |
Deferred payments of acquisition | (1,340,000) | (2,423,000) |
Repayments of borrowings | (1,034,000) | (847,000) |
Common shares repurchased | 0 | (33,610,000) |
Proceeds from exercise of stock options | 0 | 5,335,000 |
Issuance of borrowings | 0 | 1,023,000 |
Other | (145,000) | 0 |
Net Cash Used in Financing Activities | (10,129,000) | (26,685,000) |
Effect Of Currency Exchange Rate Change | (1,015,000) | (7,684,000) |
Net Decrease in Cash and Cash Equivalents and Restricted Cash | (50,435,000) | (12,405,000) |
Beginning Cash and Cash Equivalents and Restricted Cash | 423,054,000 | 214,044,000 |
Ending Cash and Cash Equivalents and Restricted Cash | $ 372,619,000 | $ 201,639,000 |
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, 2019 | $ 3,326,796 | $ 20,000 | $ 381,669 | $ 6,534,427 | $ 303,295 | $ (3,920,152) | $ 7,557 |
Increase (Decrease) in Stockholders' Equity [Roll Forward] | |||||||
Net income (loss) for the period | (33,891) | (33,891) | |||||
Net (income) loss attributable to noncontrolling interest | 0 | 772 | (772) | ||||
Net income attributable to redeemable noncontrolling interests | (126) | (126) | |||||
Dividends on common stock | (15,289) | (15,289) | |||||
Repurchase of Class B Common Stock | (33,610) | (33,610) | |||||
Issuance of Class B common stock, net of restricted stock award forfeitures | 5,335 | 5,335 | |||||
Amortization of unearned stock compensation and stock option expense | 1,568 | 1,568 | |||||
Other comprehensive loss, net of income taxes | (37,943) | (37,943) | |||||
As of at Mar. 31, 2020 | 3,212,840 | 20,000 | 383,237 | 6,485,893 | 265,352 | (3,948,427) | 6,785 |
As of at Dec. 31, 2019 | 5,655 | ||||||
Increase (Decrease) in Temporary Equity [Roll Forward] | |||||||
Net income attributable to redeemable noncontrolling interests | 126 | ||||||
As of at Mar. 31, 2020 | 5,781 | ||||||
As of at Dec. 31, 2020 | 3,766,393 | 20,000 | 388,159 | 6,804,822 | 603,314 | (4,056,993) | 7,091 |
Increase (Decrease) in Stockholders' Equity [Roll Forward] | |||||||
Net income (loss) for the period | 112,635 | 112,635 | |||||
Net (income) loss attributable to noncontrolling interest | 0 | (185) | 185 | ||||
Change in redemption value of redeemable noncontrolling interest | 761 | 697 | 64 | ||||
Distribution to noncontrolling interest | (126) | (126) | |||||
Dividends on common stock | (15,106) | (15,106) | |||||
Issuance of Class B common stock, net of restricted stock award forfeitures | (104) | (5,188) | 5,084 | ||||
Amortization of unearned stock compensation and stock option expense | 1,589 | 1,589 | |||||
Other comprehensive loss, net of income taxes | (1,203) | (1,203) | |||||
Purchase of redeemable noncontrolling interest | 0 | ||||||
As of at Mar. 31, 2021 | 3,864,839 | $ 20,000 | $ 385,257 | $ 6,902,166 | $ 602,111 | $ (4,051,909) | $ 7,214 |
As of at Dec. 31, 2020 | 11,928 | ||||||
Increase (Decrease) in Temporary Equity [Roll Forward] | |||||||
Change in redemption value of redeemable noncontrolling interests | (634) | ||||||
Purchase of redeemable noncontrolling interest | (3,508) | ||||||
As of at Mar. 31, 2021 | $ 7,786 |
Organization, Basis of Presenta
Organization, Basis of Presentation and Recent Accounting Pronouncements | 3 Months Ended |
Mar. 31, 2021 | |
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 (U.S.). The Company’s media operations comprise the ownership and operation of seven television broadcasting stations, several websites and print publications, podcast content and a marketing solutions provider. The Company’s other business operations include manufacturing, automotive dealerships, restaurants and entertainment venues, custom framing services 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 months ended March 31, 2021 and 2020 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, 2020. 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. The Company assessed certain accounting matters that generally require consideration of forecasted financial information, in context with the information reasonably available to the Company and the unknown future impacts of the novel coronavirus (COVID-19) pandemic as of March 31, 2021 and through the date of this filing. The accounting matters assessed included, but were not limited to, the Company’s carrying value of goodwill and other long-lived assets, allowance for doubtful accounts, inventory valuation and related reserves, fair value of financial assets, valuation allowances for tax assets and revenue recognition. Other than the other long-lived asset impairment charges (see Note 8), there were no other impacts to the Company’s condensed consolidated financial statements as of and for the three months ended March 31, 2021 resulting from our assessments. The Company’s assessments as of and for the three months ended March 31, 2020 resulted in goodwill and indefinite-lived asset impairment charges (see Note 6 and Note 8). The Company’s future assessment of the magnitude and duration of COVID-19, as well as other factors, could result in material impacts to the Company’s condensed consolidated financial statements in future reporting periods. |
Acquisitions and Dispositions o
Acquisitions and Dispositions of Businesses | 3 Months Ended |
Mar. 31, 2021 | |
Acquisitions And Dispositions [Abstract] | |
Acquisitions and Dispositions of Businesses | ACQUISITIONS AND DISPOSITIONS OF BUSINESSES Acquisitions . During 2020, the Company acquired three businesses: two in education and one in other businesses for $96.8 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 the first three months of 2020, Kaplan acquired two small businesses; one in its supplemental education division and one in its international division. In May 2020, the Company acquired an additional interest in Framebridge, Inc. for cash and contingent consideration that resulted in the Company obtaining control of the investee. Following the acquisition, the Company owns 93.4% of Framebridge. The Company previously accounted for Framebridge under the equity method, and included it in Investments in Affiliates on the Condensed Consolidated Balance Sheet (see Note 3). The contingent consideration is primarily based on Framebridge achieving revenue milestones within a specific time period. The fair value of the contingent consideration at the acquisition date was $50.6 million, determined using a Monte Carlo simulation. The fair value of the redeemable noncontrolling interest in Framebridge was $6.0 million as of the acquisition date, determined using a market approach. The minority shareholder has an option to put 20% of the minority shares annually starting in 2024. The acquisition is expected to provide benefits in the future by diversifying the Company’s business operations and is included in other businesses. Acquisition-related costs were expensed as incurred. The aggregate purchase price of the 2020 acquisitions was allocated as follows based on acquisition date fair values to the following assets and liabilities: Purchase Price Allocation Year Ended (in thousands) December 31, 2020 Accounts receivable $ 745 Inventory 3,496 Property, plant and equipment 3,346 Lease right-of-use assets 6,580 Goodwill 73,951 Amortized intangible assets 14,589 Other assets 975 Deferred income taxes 15,958 Other liabilities (14,917) Current and noncurrent lease liabilities (6,593) Redeemable noncontrolling interest (6,005) Aggregate purchase price, net of cash acquired $ 92,125 The 2020 fair values recorded were based upon 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). 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 $3.2 million of goodwill for income tax purposes for the acquisitions completed in 2020. The acquired companies were consolidated into the Company’s financial statements starting on their respective acquisition dates. The following unaudited pro forma financial information presents the Company’s results as if the 2020 acquisitions occurred at the beginning of 2019: Three Months Ended (in thousands) 2020 Operating revenues $ 738,331 Net loss (40,396) 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. Sale of Businesses. In December 2020, the Company completed the sale of Megaphone which was included in other businesses. Other Transactions. In March 2021, Hoover’s minority shareholders put the remaining outstanding shares to the Company, which had a redemption value of $3.5 million. Following the redemption, the Company owns 100% of Hoover. |
Investments
Investments | 3 Months Ended |
Mar. 31, 2021 | |
Investments [Abstract] | |
Investments | INVESTMENTS Money Market Investments. As of March 31, 2021 and December 31, 2020, the Company had money market investments of $175.2 million and $268.8 million, respectively, 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 March 31, December 31, (in thousands) Total cost $ 280,883 $ 232,847 Gross unrealized gains 419,469 340,255 Total Fair Value $ 700,352 $ 573,102 At March 31, 2021 and December 31, 2020, the Company owned 44,430 shares and 28,000 shares, respectively, in Markel Corporation (Markel) valued at $50.6 million and $28.9 million, respectively. The Co-Chief Executive Officer of Markel, Mr. Thomas S. Gayner, is a member of the Company’s Board of Directors. As of March 31, 2021, there was no marketable equity security holding that exceeded 5% of the Company’s total assets. The Company purchased $48.0 million of marketable equity securities during the first three months of 2021. There were no purchases of marketable equity securities during the first three months of 2020. There were no sales of marketable equity securities during the first three months of 2021. During the first three months of 2020, the gross cumulative realized losses from the sales of marketable equity securities were $2.0 million. The total proceeds from such sales were $48.0 million. The net gain (loss) on marketable equity securities comprised the following: Three Months Ended (in thousands) 2021 2020 Gain (loss) on marketable equity securities, net $ 79,214 $ (100,393) Less: Net losses in earnings from marketable equity securities sold and donated — 8,774 Net unrealized gains (losses) in earnings from marketable equity securities still held at the end of the period $ 79,214 $ (91,619) Investments in Affiliates. As of March 31, 2021, the Company held an approximate 12% interest in Intersection Holdings, LLC, and in several other affiliates; Graham Healthcare Group (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 each of the three months ended March 31, 2021 and 2020, the Company recorded $2.5 million in revenue for services provided to the affiliates of GHG. The Company had $39.4 million and $26.1 million in its investment account that represents cumulative undistributed income in its investments in affiliates as of March 31, 2021 and December 31, 2020, respectively. In the first quarter of 2020, the Company recorded impairment charges of $3.6 million on two of its investments in affiliates as a result of the challenging economic environment for these businesses, of which $2.7 million related to the Company’s investment in Framebridge. It is reasonably possible that further COVID-19 disruptions could result in additional impairment charges related to the Company’s investments in affiliates should the impact of COVID-19 not dissipate or have a worsening adverse impact on our affiliates in future periods. The Company records its share of the earnings or losses of its affiliates from their most recent available financial statements. In some instances, the reporting period of the affiliates’ financial statements lags the Company’s financial reporting period, but such lag is never more than three months. It is possible that the Company’s results of operations for the three months ended March 31, 2021 does not capture the impact of the COVID-19 pandemic on the earnings or losses of the affiliates whose financial results are recorded on a lag basis. In May 2020, the Company made an additional investment in Framebridge (see Note 2) that resulted in the Company obtaining control of the investee. The results of operations, cash flows, assets and liabilities of Framebridge are included in the condensed consolidated financial statements of the Company from the date of the acquisition. Timothy J. O’Shaughnessy, President and Chief Executive Officer of Graham Holdings Company, was a personal investor in Framebridge and served as Chairman of the Board prior to the acquisition of the additional interest. The Company acquired Mr. O’Shaughnessy’s interest under the same terms as the other Framebridge investors. Additionally, Kaplan International Holdings Limited (KIHL) held a 45% interest in a joint venture formed with York University. KIHL loaned the joint venture £22 million, which loan is repayable over 25 years at an interest rate of 7% and guaranteed by the University of York. The loan is repayable by December 2041. |
Accounts Receivable
Accounts Receivable | 3 Months Ended |
Mar. 31, 2021 | |
Accounts and Financing Receivable, after Allowance for Credit Loss [Abstract] | |
Accounts Receivable | ACCOUNTS RECEIVABLE Accounts receivable consist of the following: As of March 31, December 31, (in thousands) Receivables from contracts with customers, less estimated credit losses of $21,126 and $21,494 $ 495,443 $ 519,577 Other receivables 19,777 17,579 $ 515,220 $ 537,156 Credit loss expense was $1.1 million and $2.4 million for the three months ended March 31, 2021 and 2020, respectively. |
Inventories, Contracts in Progr
Inventories, Contracts in Progress and Vehicle Floor Plan Payable | 3 Months Ended |
Mar. 31, 2021 | |
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 March 31, December 31, (in thousands) Raw materials $ 46,177 $ 45,382 Work-in-process 14,534 10,402 Finished goods 71,254 64,061 Contracts in progress 171 777 $ 132,136 $ 120,622 The Company finances new and used vehicle inventory through a standardized floor plan facility (the “floor plan facility”) with Truist Bank. The 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 1.2% and 2.6% for the three months ended March 31, 2021 and 2020, respectively. As of March 31, 2021, the aggregate capacity under the floor plan facility was $50 million, of which $28.4 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 March 31, 2021. The floor plan interest expense related to the vehicle floor plan arrangements is offset by amounts received from manufacturers in the form of floor plan assistance capitalized in inventory and recorded against cost of goods sold in the Condensed Consolidated Statements of Operations when the associated inventory is sold. For the three months ended March 31, 2021 and 2020, the Company recognized a reduction in cost of goods sold of $0.6 million and $0.4 million, respectively, related to manufacturer floor plan assistance. |
Goodwill and Other Intangible A
Goodwill and Other Intangible Assets | 3 Months Ended |
Mar. 31, 2021 | |
Goodwill and Intangible Assets Disclosure [Abstract] | |
Goodwill and Other Intangible Assets | GOODWILL AND OTHER INTANGIBLE ASSETSIn the first quarter of 2020, as a result of the uncertainty and challenging operating environment created by the COVID-19 pandemic, the Company performed an interim review of the goodwill, indefinite-lived intangibles and other long-lived assets of the Clyde’s Restaurant Group (CRG) and automotive dealership reporting units and asset groups. As a result of the impairment reviews, the Company recorded a $9.7 million goodwill and indefinite-lived intangible asset impairment charge at CRG and a $6.7 million indefinite-lived intangible asset impairment charge at the auto dealerships. The Company estimated the fair value of the reporting units and indefinite-lived intangible assets by utilizing a discounted cash flow model. The carrying value of the CRG reporting unit and the indefinite-lived intangible assets exceeded the estimated fair value, resulting in a goodwill and indefinite-lived intangible asset impairment charge for the amount by which the carrying value exceeded the estimated fair value. CRG and the automotive dealerships are included in other businesses. Additional COVID-19 disruptions could result in future adverse changes in projections for future operating results or other key assumptions, such as projected revenue, profit margin, capital expenditures or cash flows associated with fair value estimates and could lead to additional future impairments, which could be material. Amortization of intangible assets for the three months ended March 31, 2021 and 2020, was $13.9 million and $14.2 million, respectively. Amortization of intangible assets is estimated to be approximately $38 million for the remainder of 2021, $46 million in 2022, $38 million in 2023, $27 million in 2024, $21 million in 2025 and $20 million thereafter. The changes in the carrying amount of goodwill, by segment, were as follows: (in thousands) Education Television Manufacturing Healthcare Other Total Balance as of December 31, 2020 Goodwill $ 1,183,379 $ 190,815 $ 234,993 $ 98,421 $ 130,472 $ 1,838,080 Accumulated impairment losses (331,151) — (7,616) — (14,563) (353,330) 852,228 190,815 227,377 98,421 115,909 1,484,750 Foreign currency exchange rate changes 387 — — — — 387 Balance as of March 31, 2021 Goodwill 1,183,766 190,815 234,993 98,421 130,472 1,838,467 Accumulated impairment losses (331,151) — (7,616) — (14,563) (353,330) $ 852,615 $ 190,815 $ 227,377 $ 98,421 $ 115,909 $ 1,485,137 The changes in carrying amount of goodwill at the Company’s education division were as follows: (in thousands) Kaplan Higher Supplemental Education Total Balance as of December 31, 2020 Goodwill $ 634,749 $ 174,564 $ 374,066 $ 1,183,379 Accumulated impairment losses — (111,324) (219,827) (331,151) 634,749 63,240 154,239 852,228 Foreign currency exchange rate changes 361 — 26 387 Balance as of March 31, 2021 Goodwill 635,110 174,564 374,092 1,183,766 Accumulated impairment losses — (111,324) (219,827) (331,151) $ 635,110 $ 63,240 $ 154,265 $ 852,615 Other intangible assets consist of the following: As of March 31, 2021 As of December 31, 2020 (in thousands) Useful Life Gross Accumulated Net Carrying Gross Accumulated Net Amortized Intangible Assets Student and customer relationships 2–10 years $ 293,481 $ 185,781 $ 107,700 $ 294,077 $ 178,075 $ 116,002 Trade names and trademarks 2–10 years 109,485 57,667 51,818 109,809 54,766 55,043 Network affiliation agreements 10 years 17,400 7,322 10,078 17,400 6,888 10,512 Databases and technology 3–6 years 34,747 21,572 13,175 34,864 19,924 14,940 Noncompete agreements 2–5 years 1,000 963 37 1,000 937 63 Other 1–8 years 24,800 17,567 7,233 24,800 16,714 8,086 $ 480,913 $ 290,872 $ 190,041 $ 481,950 $ 277,304 $ 204,646 Indefinite-Lived Intangible Assets Trade names and trademarks $ 88,042 $ 87,429 Franchise agreements 21,858 21,858 FCC licenses 11,000 11,000 Licensure and accreditation 150 150 $ 121,050 $ 120,437 |
Debt
Debt | 3 Months Ended |
Mar. 31, 2021 | |
Debt Disclosure [Abstract] | |
Debt | DEBT The Company’s borrowings consist of the following: As of March 31, December 31, (in thousands) 5.75% unsecured notes due June 1, 2026 (1) $ 396,289 $ 396,112 Revolving credit facility 75,621 74,686 Commercial note 24,500 25,250 Pinnacle Bank term loan 10,411 10,692 Pinnacle Bank line of credit 73 2,295 Other indebtedness 3,435 3,520 Total Debt $ 510,329 $ 512,555 Less: current portion (4,238) (6,452) Total Long-Term Debt $ 506,091 $ 506,103 ___________ _ (1) The carrying value is net of $3.7 million and $3.9 million of unamortized debt issuance costs as of March 31, 2021 and December 31, 2020, respectively. The outstanding balance on the Company’s revolving credit facility was £55 million as of March 31, 2021 with interest payable at the 3 month GBP LIBOR plus 1.50%. The Company’s other indebtedness at March 31, 2021 and December 31, 2020 is at interest rates of 0% to 16% and matures between 2023 and 2030. The Company is in compliance with all financial covenants as of March 31, 2021. During the three months ended March 31, 2021 and 2020, the Company had average borrowings outstanding of approximately $512.1 million and $511.4 million, respectively, at average annual interest rates of approximately 5.0% and 5.1%, respectively. During the three months ended March 31, 2021 and 2020, the Company incurred net interest expense of $7.6 million and $6.5 million, respectively. During the three months ended March 31, 2021, the Company recorded interest expense of $1.1 million to adjust the fair value of the mandatorily redeemable noncontrolling interest. The fair value of the mandatorily redeemable noncontrolling interest was based on the fair value of the underlying subsidiaries owned by GHC One, after taking into account any debt and other noncontrolling interests of its subsidiary investments. The fair value of the owned subsidiaries is determined by reference to either a discounted cash flow or EBITDA multiple, which approximates fair value (Level 3 fair value assessment). At March 31, 2021 and December 31, 2020, the fair value of the Company’s 5.75% unsecured notes, based on quoted market prices (Level 2 fair value assessment), totaled $418.4 million and $421.7 million, respectively, compared with the carrying amount of $396.3 million and $396.1 million, respectively. The carrying value of the Company’s other unsecured debt at March 31, 2021 and December 31, 2020 approximates fair value. |
Fair Value Measurements
Fair Value Measurements | 3 Months Ended |
Mar. 31, 2021 | |
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 March 31, 2021 (in thousands) Level 1 Level 2 Level 3 Total Assets Money market investments (1) $ — $ 175,200 $ — $ 175,200 Marketable equity securities (2) 700,352 — — 700,352 Other current investments (3) 10,121 5,107 — 15,228 Total Financial Assets $ 710,473 $ 180,307 $ — $ 890,780 Liabilities Deferred compensation plan liabilities (4) $ — $ 29,442 $ — $ 29,442 Contingent consideration liabilities (5) — — 35,822 35,822 Interest rate swap (6) — 1,720 — 1,720 Mandatorily redeemable noncontrolling interest (7) — — 10,272 10,272 Total Financial Liabilities $ — $ 31,162 $ 46,094 $ 77,256 As of December 31, 2020 (in thousands) Level 1 Level 2 Level 3 Total Assets Money market investments (1) $ — $ 268,841 $ — $ 268,841 Marketable equity securities (2) 573,102 — — 573,102 Other current investments (3) 10,397 4,083 — 14,480 Total Financial Assets $ 583,499 $ 272,924 $ — $ 856,423 Liabilities Deferred compensation plan liabilities (4) $ — $ 31,178 $ — $ 31,178 Contingent consideration liabilities (5) — — 37,174 37,174 Interest rate swap (6) — 2,342 — 2,342 Foreign exchange swap (8) — 259 — 259 Mandatorily redeemable noncontrolling interest (7) — — 9,240 9,240 Total Financial Liabilities $ — $ 33,779 $ 46,414 $ 80,193 ____________ (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. and Canadian corporations that are actively traded on U.S. and Canadian 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) 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 Accounts payable and accrued liabilities and Other Liabilities. The Company determined the fair value of the contingent consideration liabilities using a Monte Carlo simulation as of the acquisition dates, which included using estimated financial projections for the acquired businesses. (6) Included in Other Liabilities. The Company utilized a market approach model using the notional amount of the interest rate swap multiplied by the observable inputs of time to maturity and market interest rates. (7) The fair value of the mandatorily redeemable noncontrolling interest is based on the fair value of the underlying subsidiaries owned by GHC One, after taking into account any debt and other noncontrolling interests of its subsidiary investments. The fair value of the owned subsidiaries is determined by reference to either a discounted cash flow or EBITDA multiple, which approximates fair value. (8) Included in Accounts payable and accrued liabilities, and valued based on a valuation model that calculates the differential between the contract price and the market-based forward rate. The following table provides a reconciliation of changes in the Company’s financial liabilities measured at fair value on a recurring basis, using Level 3 inputs: (in thousands) Contingent consideration liabilities Mandatorily redeemable noncontrolling interest As of December 31, 2020 $ 37,174 $ 9,240 Changes in fair value $ — $ 1,051 Accretion of value included in net income $ 606 $ — Settlements or distributions $ (1,849) $ (19) Foreign currency exchange rate changes $ (109) $ — As of March 31, 2021 $ 35,822 $ 10,272 During the three months ended March 31, 2021, the Company recorded other long-lived asset impairment charges of $1.0 million. During the three months ended March 31, 2020, the Company recorded goodwill and indefinite-lived intangible asset impairment charges of $16.4 million. The remeasurement of the goodwill and other long-lived assets is classified as a Level 3 fair value assessment due to the significance of unobservable inputs developed in the determination of the fair value. The Company used a discounted cash flow model to determine the estimated fair value of the reporting unit, indefinite-lived intangible assets, and other long-lived assets. A market value approach was also utilized to supplement the discounted cash flow model. The Company made estimates and assumptions regarding future cash flows, royalty rates, discount rates, market values, and long-term growth rates. During the three months ended March 31, 2021, the Company recorded gains of $2.7 million to equity securities that are accounted for as cost method investments based on observable transactions for identical or similar investments of the same issuer. During the three months ended March 31, 2020, the Company recorded impairment losses of $2.6 million to equity securities that are accounted for as cost method investments. |
Income Taxes
Income Taxes | 3 Months Ended |
Mar. 31, 2021 | |
Income Tax Disclosure [Abstract] | |
Income Taxes | INCOME TAXES On July 1, 2015 (the Distribution Date), the Company completed the spin-off of Cable ONE as an independent, publicly traded company. The transaction was structured as a tax-free spin-off of Cable ONE to the stockholders of the Company. Since July 1, 2015, Cable One has been an independent public company trading on the New York Stock Exchange under the symbol “CABO”. In connection with the Coronavirus Aid, Relief and Economic Security (CARES) Act, Cable One has the ability to carryback its 2019 taxable losses to the tax period from January 1, 2015 to June 30, 2015, the period in which Cable One was included in the Company’s 2015 tax return. As a result, the Company amended its 2015 tax returns in order to accommodate Cable One's request to carryback its 2019 taxable losses. The Company expects that this action will have no impact on the results or the financial position of the Company. To reflect the expected refund due to Cable One, the Company has included an estimated $15.9 million current income tax receivable and a corresponding current liability to Cable One on its balance sheet as of March 31, 2021. The Company's effective tax rate for the first three months of 2021 was 26.9%. The Company’s effective tax rate for the first three months of 2020 was 57.3%, which was generally based on the Company’s estimated effective tax rate for fiscal year 2020. The Company’s estimated tax rate for 2020 included the adverse impacts of the COVID-19 pandemic and losses on marketable equity securities on the Company’s estimated pre-tax income for 2020, resulting in a significantly higher overall estimated tax rate, as permanent differences and increased valuation allowances have a larger impact on the overall estimated effective tax rate. |
Revenue from Contracts with Cus
Revenue from Contracts with Customers | 3 Months Ended |
Mar. 31, 2021 | |
Revenue from Contract with Customer [Abstract] | |
Revenue from Contracts with Customers | REVENUE FROM CONTRACTS WITH CUSTOMERS The Company generated 77% and 74% of its revenue from U.S. domestic sales for the three months ended March 31, 2021 and March 31, 2020, respectively. The remaining 23% and 26% of revenue was generated from non-U.S. sales for the three months ended March 31, 2021 and March 31, 2020, respectively. For the three months ended March 31, 2021, the Company recognized 70% of its revenue over time as control of the services and goods transferred to the customer, and the remaining 30% at a point in time, when the customer obtained control of the promised goods. For the three months ended March 31, 2020, the Company recognized 73% of its revenue over time, and the remaining 27% at a point in time. Contract Assets. As of March 31, 2021, the Company recognized a contract asset of $10.0 million related to a contract at a Kaplan International business, which is included in Deferred Charges and Other Assets. The Company expects to recognize an additional $7.8 million related to this performance obligation over the next twelve months. As of December 31, 2020, the contract asset was $8.7 million. 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 March 31, December 31, % (in thousands) Change Deferred revenue $ 336,440 $ 343,322 (2) In April 2020, GHG received $31.5 million under the expanded Medicare Accelerated and Advanced Payment Program modified by the CARES Act as a result of COVID-19. The amount is included in the current and noncurrent deferred revenue balances on the Condensed Consolidated Balance Sheets as of March 31, 2021 and December 31, 2020. The Department of Health and Human Services will recoup this advance beginning 365 days after the payment was issued, and the deferred revenue will be reduced by a portion of the amount of revenue recognized for claims submitted for services provided after the recoupment period begins. The majority of the change in deferred revenue balance is related to the cyclical nature of services in the education segment. During the three months ended March 31, 2021, the Company recognized $145.1 million related to the Company’s deferred revenue balance as of December 31, 2020. Revenue allocated to remaining performance obligations represents deferred revenue amounts that will be recognized as revenue in future periods. As of March 31, 2021, the deferred revenue balance related to certain medical and nursing qualifications with an original contract length greater than twelve months at Kaplan Supplemental Education was $7.3 million. Kaplan Supplemental Education expects to recognize 64% 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 Costs associated with new contracts Less: Costs amortized during the period Other Balance 2021 $ 24,363 $ 11,833 $ (13,298) $ (95) $ 22,803 Other activity includes currency translation adjustments for the three months ended March 31, 2021. |
Earnings (Loss) Per Share
Earnings (Loss) Per Share | 3 Months Ended |
Mar. 31, 2021 | |
Earnings Per Share [Abstract] | |
Earnings (Loss) Per Share | EARNINGS (LOSS) PER SHAREThe 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 (loss) and share data used in the basic and diluted earnings (loss) per share computations using the two-class method: Three Months Ended (in thousands, except per share amounts) 2021 2020 Numerator: Numerator for basic earnings (loss) per share: Net income (loss) attributable to Graham Holdings Company common stockholders $ 112,450 $ (33,245) Less: Dividends paid-common stock outstanding and unvested restricted shares (15,106) (15,289) Undistributed earnings (loss) 97,344 (48,534) Percent allocated to common stockholders (1) 99.33 % 100.00 % 96,693 (48,534) Add: Dividends paid-common stock outstanding 15,005 15,205 Numerator for basic earnings (loss) per share $ 111,698 $ (33,329) Add: Additional undistributed earnings due to dilutive stock options 1 — Numerator for diluted earnings (loss) per share $ 111,699 $ (33,329) Denominator: Denominator for basic earnings (loss) per share: Weighted average shares outstanding 4,967 5,274 Add: Effect of dilutive stock options 10 — Denominator for diluted earnings (loss) per share 4,977 5,274 Graham Holdings Company Common Stockholders: Basic earnings (loss) per share $ 22.49 $ (6.32) Diluted earnings (loss) per share $ 22.44 $ (6.32) _______ (1) Percent of undistributed losses allocated to common stockholders was 100% in the first three months of 2020 as participating securities are not contractually obligated to share in losses. Diluted earnings (loss) 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 (in thousands) 2021 2020 Weighted average restricted stock 9 12 Weighted average stock options — 27 The diluted earnings (loss) per share amounts for the three months ended March 31, 2021 and March 31, 2020 exclude the effects of 104,000 stock options outstanding, as their inclusion would have been antidilutive due to a market condition. In the three months ended March 31, 2021 and March 31, 2020, the Company declared regular dividends totaling $3.02 and $2.90 per common share, respectively. |
Pension and Postretirement Plan
Pension and Postretirement Plans | 3 Months Ended |
Mar. 31, 2021 | |
Retirement Benefits, Description [Abstract] | |
Pension and Postretirement Plans | PENSION AND POSTRETIREMENT PLANS Defined Benefit Plans. The total benefit arising from the Company’s defined benefit pension plans consists of the following components: Three Months Ended (in thousands) 2021 2020 Service cost $ 5,602 $ 5,783 Interest cost 6,654 8,169 Expected return on assets (34,576) (28,444) Amortization of prior service cost 711 708 Recognized actuarial gain (2,892) — Net Periodic Benefit $ (24,501) $ (13,784) The total cost arising from the Company’s Supplemental Executive Retirement Plan (SERP) consists of the following components: Three Months Ended (in thousands) 2021 2020 Service cost $ 255 $ 238 Interest cost 736 919 Amortization of prior service cost 83 83 Recognized actuarial loss 1,482 1,317 Net Periodic Cost $ 2,556 $ 2,557 Defined Benefit Plan Assets. The Company’s defined benefit pension obligations are funded by a portfolio made up of a private investment fund, a U.S. stock index fund, and a relatively small number of stocks and high-quality fixed-income securities that are held by a third-party trustee. The assets of the Company’s pension plans were allocated as follows: As of March 31, December 31, U.S. equities 61 % 58 % Private investment fund 17 % 18 % U.S. stock index fund 9 % 9 % International equities 8 % 8 % U.S. fixed income 5 % 7 % 100 % 100 % The Company manages approximately 40% of the pension assets internally, of which the majority is invested in a private investment fund with the remaining investments in Berkshire Hathaway stock, a U.S. stock index fund and short-term fixed-income securities. The remaining 60% of plan assets are managed by two investment companies. The goal of the investment managers is to produce moderate long-term growth in the value of these assets, while protecting them against large decreases in value. Both investment managers may invest in a combination of equity and fixed-income securities and cash. The managers are not permitted to invest in securities of the Company or in alternative investments. One investment manager cannot invest more than 15% of the assets at the time of purchase in the stock of Alphabet and Berkshire Hathaway, and no more than 30% of the assets it manages in specified international exchanges at the time the investment is made. The other investment manager cannot invest more than 20% of the assets at the time of purchase in the stock of Berkshire Hathaway, and 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 March 31, 2021. Types of concentrations that were evaluated include, but are not limited to, investment concentrations in a single entity, type of industry, foreign country and individual fund. At March 31, 2021, the pension plan held investments in one common stock and one private investment fund that exceeded 10% of total plan assets, valued at $885.3 million, or approximately 30% of total plan assets. At December 31, 2020, the pension plan held investments in one common stock and one private investment fund that exceeded 10% of total plan assets, valued at $850.6 million, or approximately 30% 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 (in thousands) 2021 2020 Interest cost $ 36 $ 62 Amortization of prior service credit (2) (120) Recognized actuarial gain (1,019) (1,097) Net Periodic Benefit $ (985) $ (1,155) |
Other Non-Operating Income
Other Non-Operating Income | 3 Months Ended |
Mar. 31, 2021 | |
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 (in thousands) 2021 2020 Gain on a cost method investment $ 2,723 $ — Gain on sale of businesses 802 107 Gain on sale of cost method investments 94 518 Foreign currency gain, net 3 4,290 Impairment of cost method investments — (2,577) Loss on sale of an equity affiliate — (103) Other gain, net 2,698 453 Total Other Non-Operating Income $ 6,320 $ 2,688 In the first quarter of 2021, the Company recorded a gain of $2.7 million resulting from observable price changes in the fair value of an equity security accounted for under the cost method. |
Accumulated Other Comprehensive
Accumulated Other Comprehensive Income (Loss) | 3 Months Ended |
Mar. 31, 2021 | |
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 March 31 2021 2020 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 $ (486) $ — $ (486) $ (37,376) $ — $ (37,376) Pension and other postretirement plans: Amortization of net prior service cost included in net income 792 (213) 579 671 (181) 490 Amortization of net actuarial (gain) loss included in net income (2,429) 656 (1,773) 220 (60) 160 (1,637) 443 (1,194) 891 (241) 650 Cash flow hedges: Gain (loss) for the period 621 (144) 477 (1,578) 361 (1,217) Other Comprehensive Loss $ (1,502) $ 299 $ (1,203) $ (38,063) $ 120 $ (37,943) The accumulated balances related to each component of other comprehensive income (loss) are as follows: (in thousands, net of taxes) Cumulative Unrealized Gain Cash Flow Accumulated Balance as of December 31, 2020 $ 9,754 $ 595,287 $ (1,727) $ 603,314 Other comprehensive (loss) income before reclassifications (486) — 323 (163) Net amount reclassified from accumulated other comprehensive income (loss) — (1,194) 154 (1,040) Other comprehensive (loss) income, net of tax (486) (1,194) 477 (1,203) Balance as of March 31, 2021 $ 9,268 $ 594,093 $ (1,250) $ 602,111 The amounts and line items of reclassifications out of Accumulated Other Comprehensive Income (Loss) are as follows: Three Months Ended Affected Line Item in the Condensed Consolidated Statements of Operations (in thousands) 2021 2020 Pension and Other Postretirement Plans: Amortization of net prior service cost $ 792 $ 671 (1) Amortization of net actuarial (gain) loss (2,429) 220 (1) (1,637) 891 Before tax 443 (241) Provision for (Benefit from) Income Taxes (1,194) 650 Net of Tax Cash Flow Hedges 154 29 Interest expense — 7 Provision for (Benefit from) Income Taxes 154 36 Net of Tax Total reclassification for the period $ (1,040) $ 686 Net of Tax ____________ (1) These accumulated other comprehensive income components are included in the computation of net periodic pension and postretirement plan cost (see Note 12) and are included in non-operating pension and postretirement benefit income in the Company’s Condensed Consolidated Statements of Operations. |
Contingencies
Contingencies | 3 Months Ended |
Mar. 31, 2021 | |
Commitments and Contingencies Disclosure [Abstract] | |
Contingencies | CONTINGENCIES Litigation, Legal and Other Matters . The Company and its subsidiaries are subject to complaints and administrative proceedings and are defendants in various civil lawsuits that have arisen in the ordinary course of their businesses, including contract disputes; actions alleging negligence, libel, defamation and invasion of privacy; trademark, copyright and patent infringement; violations of employment laws and applicable wage and hour laws; and statutory or common law claims involving current and former students and employees. Although the outcomes of the legal claims and proceedings against the Company cannot be predicted with certainty, based on currently available information, management believes that there are no existing claims or proceedings that are likely to have a material effect on the Company’s business, financial condition, results of operations or cash flows. However, based on currently available information, management believes it is reasonably possible that future losses from existing and threatened legal, regulatory and other proceedings in excess of the amounts recorded could reach approximately $10 million. |
Business Segments
Business Segments | 3 Months Ended |
Mar. 31, 2021 | |
Segment Reporting [Abstract] | |
Business Segments | BUSINESS SEGMENTSThe Company has six reportable segments: Kaplan International, Kaplan Higher Education, Kaplan Supplemental Education, Television Broadcasting, Manufacturing and Healthcare. The following tables summarize the financial information related to each of the Company’s business segments: Three months ended March 31 (in thousands) 2021 2020 Operating Revenues Education $ 329,317 $ 356,378 Television broadcasting 113,625 115,448 Manufacturing 115,960 113,458 Healthcare 50,043 45,994 Other businesses 104,039 101,282 Corporate office — — Intersegment elimination (529) (303) $ 712,455 $ 732,257 Income (Loss) from Operations before Amortization of Intangible Assets and Impairment of Goodwill and Other Long-Lived Assets Education $ 24,148 $ 8,893 Television broadcasting 34,337 37,136 Manufacturing 15,894 13,638 Healthcare 7,921 4,479 Other businesses (18,692) (16,923) Corporate office (14,780) (8,572) $ 48,828 $ 38,651 Amortization of Intangible Assets and Impairment of Goodwill and Other Long-Lived Assets Education $ 5,212 $ 4,201 Television broadcasting 1,359 1,360 Manufacturing 6,987 7,137 Healthcare 781 1,310 Other businesses 645 16,558 Corporate office — — $ 14,984 $ 30,566 Income (Loss) from Operations Education $ 18,936 $ 4,692 Television broadcasting 32,978 35,776 Manufacturing 8,907 6,501 Healthcare 7,140 3,169 Other businesses (19,337) (33,481) Corporate office (14,780) (8,572) $ 33,844 $ 8,085 Equity in Earnings (Losses) of Affiliates, Net 13,428 (1,547) Interest Expense, Net (7,558) (6,527) Non-Operating Pension and Postretirement Benefit Income, Net 28,787 18,403 Gain (Loss) on Marketable Equity Securities, Net 79,214 (100,393) Other Income, Net 6,320 2,688 Income (Loss) Before Income Taxes $ 154,035 $ (79,291) Depreciation of Property, Plant and Equipment Education $ 7,780 $ 7,329 Television broadcasting 3,473 3,343 Manufacturing 2,517 2,527 Healthcare 317 540 Other businesses 2,290 2,790 Corporate office 168 175 $ 16,545 $ 16,704 Pension Service Cost Education $ 2,283 $ 2,585 Television broadcasting 835 796 Manufacturing 395 394 Healthcare 172 159 Other businesses 369 463 Corporate office 1,548 1,386 $ 5,602 $ 5,783 Asset information for the Company’s business segments is as follows: As of (in thousands) March 31, 2021 December 31, 2020 Identifiable Assets Education $ 1,901,257 $ 1,975,104 Television broadcasting 450,403 453,988 Manufacturing 557,631 551,611 Healthcare 160,033 160,654 Other businesses 506,936 517,533 Corporate office 341,980 348,045 $ 3,918,240 $ 4,006,935 Investments in Marketable Equity Securities 700,352 573,102 Investments in Affiliates 169,203 155,777 Prepaid Pension Cost 1,730,625 1,708,305 Total Assets $ 6,518,420 $ 6,444,119 The Company’s education division comprises the following operating segments: Three months ended March 31 (in thousands) 2021 2020 Operating Revenues Kaplan international $ 171,895 $ 199,615 Higher education 75,686 73,537 Supplemental education 79,655 81,288 Kaplan corporate and other 3,363 3,205 Intersegment elimination (1,282) (1,267) $ 329,317 $ 356,378 Income (Loss) From Operations before Amortization of Intangible Assets and Impairment of Long-Lived Assets Kaplan international $ 10,207 $ 18,980 Higher education 6,253 (2,020) Supplemental education 12,497 (6,550) Kaplan corporate and other (4,907) (1,522) Intersegment elimination 98 5 $ 24,148 $ 8,893 Amortization of Intangible Assets $ 4,165 $ 4,201 Impairment of Long-Lived Assets $ 1,047 $ — Income (Loss) from Operations Kaplan international $ 10,207 $ 18,980 Higher education 6,253 (2,020) Supplemental education 12,497 (6,550) Kaplan corporate and other (10,119) (5,723) Intersegment elimination 98 5 $ 18,936 $ 4,692 Depreciation of Property, Plant and Equipment Kaplan international $ 5,252 $ 4,578 Higher education 852 723 Supplemental education 1,576 1,939 Kaplan corporate and other 100 89 $ 7,780 $ 7,329 Pension Service Cost Kaplan international $ 71 $ 112 Higher education 1,083 1,070 Supplemental education 931 1,085 Kaplan corporate and other 198 318 $ 2,283 $ 2,585 Asset information for the Company’s education division is as follows: As of (in thousands) March 31, 2021 December 31, 2020 Identifiable Assets Kaplan international $ 1,387,772 $ 1,455,722 Higher education 188,602 187,123 Supplemental education 265,408 274,687 Kaplan corporate and other 59,475 57,572 $ 1,901,257 $ 1,975,104 |
Organization, Basis of Presen_2
Organization, Basis of Presentation And Recent Accounting Pronouncements (Policies) | 3 Months Ended |
Mar. 31, 2021 | |
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 months ended March 31, 2021 and 2020 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, 2020. 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. |
Acquisitions and Dispositions_2
Acquisitions and Dispositions of Businesses (Tables) | 3 Months Ended |
Mar. 31, 2021 | |
Acquisitions And Dispositions [Abstract] | |
Schedule of assets acquired and liabilities assumed | The aggregate purchase price of the 2020 acquisitions was allocated as follows based on acquisition date fair values to the following assets and liabilities: Purchase Price Allocation Year Ended (in thousands) December 31, 2020 Accounts receivable $ 745 Inventory 3,496 Property, plant and equipment 3,346 Lease right-of-use assets 6,580 Goodwill 73,951 Amortized intangible assets 14,589 Other assets 975 Deferred income taxes 15,958 Other liabilities (14,917) Current and noncurrent lease liabilities (6,593) Redeemable noncontrolling interest (6,005) Aggregate purchase price, net of cash acquired $ 92,125 |
Acquisition Pro Forma Financial Information | The following unaudited pro forma financial information presents the Company’s results as if the 2020 acquisitions occurred at the beginning of 2019: Three Months Ended (in thousands) 2020 Operating revenues $ 738,331 Net loss (40,396) |
Investments (Tables)
Investments (Tables) | 3 Months Ended |
Mar. 31, 2021 | |
Investments [Abstract] | |
Investments in Marketable Equity Securities | Investments in marketable equity securities consist of the following: As of March 31, December 31, (in thousands) Total cost $ 280,883 $ 232,847 Gross unrealized gains 419,469 340,255 Total Fair Value $ 700,352 $ 573,102 |
Gain (Loss) on Marketable Equity Securities | The net gain (loss) on marketable equity securities comprised the following: Three Months Ended (in thousands) 2021 2020 Gain (loss) on marketable equity securities, net $ 79,214 $ (100,393) Less: Net losses in earnings from marketable equity securities sold and donated — 8,774 Net unrealized gains (losses) in earnings from marketable equity securities still held at the end of the period $ 79,214 $ (91,619) |
Accounts Receivable (Tables)
Accounts Receivable (Tables) | 3 Months Ended |
Mar. 31, 2021 | |
Accounts and Financing Receivable, after Allowance for Credit Loss [Abstract] | |
Schedule of Accounts Receivable | Accounts receivable consist of the following: As of March 31, December 31, (in thousands) Receivables from contracts with customers, less estimated credit losses of $21,126 and $21,494 $ 495,443 $ 519,577 Other receivables 19,777 17,579 $ 515,220 $ 537,156 |
Inventories, Contracts in Pro_2
Inventories, Contracts in Progress and Vehicle Floor Plan Payable (Tables) | 3 Months Ended |
Mar. 31, 2021 | |
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 March 31, December 31, (in thousands) Raw materials $ 46,177 $ 45,382 Work-in-process 14,534 10,402 Finished goods 71,254 64,061 Contracts in progress 171 777 $ 132,136 $ 120,622 |
Goodwill and Other Intangible_2
Goodwill and Other Intangible Assets (Tables) | 3 Months Ended |
Mar. 31, 2021 | |
Changes in Carrying Amount of Goodwill | The changes in the carrying amount of goodwill, by segment, were as follows: (in thousands) Education Television Manufacturing Healthcare Other Total Balance as of December 31, 2020 Goodwill $ 1,183,379 $ 190,815 $ 234,993 $ 98,421 $ 130,472 $ 1,838,080 Accumulated impairment losses (331,151) — (7,616) — (14,563) (353,330) 852,228 190,815 227,377 98,421 115,909 1,484,750 Foreign currency exchange rate changes 387 — — — — 387 Balance as of March 31, 2021 Goodwill 1,183,766 190,815 234,993 98,421 130,472 1,838,467 Accumulated impairment losses (331,151) — (7,616) — (14,563) (353,330) $ 852,615 $ 190,815 $ 227,377 $ 98,421 $ 115,909 $ 1,485,137 |
Other Intangible Assets | Other intangible assets consist of the following: As of March 31, 2021 As of December 31, 2020 (in thousands) Useful Life Gross Accumulated Net Carrying Gross Accumulated Net Amortized Intangible Assets Student and customer relationships 2–10 years $ 293,481 $ 185,781 $ 107,700 $ 294,077 $ 178,075 $ 116,002 Trade names and trademarks 2–10 years 109,485 57,667 51,818 109,809 54,766 55,043 Network affiliation agreements 10 years 17,400 7,322 10,078 17,400 6,888 10,512 Databases and technology 3–6 years 34,747 21,572 13,175 34,864 19,924 14,940 Noncompete agreements 2–5 years 1,000 963 37 1,000 937 63 Other 1–8 years 24,800 17,567 7,233 24,800 16,714 8,086 $ 480,913 $ 290,872 $ 190,041 $ 481,950 $ 277,304 $ 204,646 Indefinite-Lived Intangible Assets Trade names and trademarks $ 88,042 $ 87,429 Franchise agreements 21,858 21,858 FCC licenses 11,000 11,000 Licensure and accreditation 150 150 $ 121,050 $ 120,437 |
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 Higher Supplemental Education Total Balance as of December 31, 2020 Goodwill $ 634,749 $ 174,564 $ 374,066 $ 1,183,379 Accumulated impairment losses — (111,324) (219,827) (331,151) 634,749 63,240 154,239 852,228 Foreign currency exchange rate changes 361 — 26 387 Balance as of March 31, 2021 Goodwill 635,110 174,564 374,092 1,183,766 Accumulated impairment losses — (111,324) (219,827) (331,151) $ 635,110 $ 63,240 $ 154,265 $ 852,615 |
Debt (Tables)
Debt (Tables) | 3 Months Ended |
Mar. 31, 2021 | |
Debt Disclosure [Abstract] | |
Components of Debt | The Company’s borrowings consist of the following: As of March 31, December 31, (in thousands) 5.75% unsecured notes due June 1, 2026 (1) $ 396,289 $ 396,112 Revolving credit facility 75,621 74,686 Commercial note 24,500 25,250 Pinnacle Bank term loan 10,411 10,692 Pinnacle Bank line of credit 73 2,295 Other indebtedness 3,435 3,520 Total Debt $ 510,329 $ 512,555 Less: current portion (4,238) (6,452) Total Long-Term Debt $ 506,091 $ 506,103 ___________ _ (1) The carrying value is net of $3.7 million and $3.9 million of unamortized debt issuance costs as of March 31, 2021 and December 31, 2020, respectively. |
Fair Value Measurements (Tables
Fair Value Measurements (Tables) | 3 Months Ended |
Mar. 31, 2021 | |
Fair Value Disclosures [Abstract] | |
Schedule of Fair Value, Assets and Liabilities Measured on Recurring Basis | The Company’s financial assets and liabilities measured at fair value on a recurring basis were as follows: As of March 31, 2021 (in thousands) Level 1 Level 2 Level 3 Total Assets Money market investments (1) $ — $ 175,200 $ — $ 175,200 Marketable equity securities (2) 700,352 — — 700,352 Other current investments (3) 10,121 5,107 — 15,228 Total Financial Assets $ 710,473 $ 180,307 $ — $ 890,780 Liabilities Deferred compensation plan liabilities (4) $ — $ 29,442 $ — $ 29,442 Contingent consideration liabilities (5) — — 35,822 35,822 Interest rate swap (6) — 1,720 — 1,720 Mandatorily redeemable noncontrolling interest (7) — — 10,272 10,272 Total Financial Liabilities $ — $ 31,162 $ 46,094 $ 77,256 As of December 31, 2020 (in thousands) Level 1 Level 2 Level 3 Total Assets Money market investments (1) $ — $ 268,841 $ — $ 268,841 Marketable equity securities (2) 573,102 — — 573,102 Other current investments (3) 10,397 4,083 — 14,480 Total Financial Assets $ 583,499 $ 272,924 $ — $ 856,423 Liabilities Deferred compensation plan liabilities (4) $ — $ 31,178 $ — $ 31,178 Contingent consideration liabilities (5) — — 37,174 37,174 Interest rate swap (6) — 2,342 — 2,342 Foreign exchange swap (8) — 259 — 259 Mandatorily redeemable noncontrolling interest (7) — — 9,240 9,240 Total Financial Liabilities $ — $ 33,779 $ 46,414 $ 80,193 ____________ (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. and Canadian corporations that are actively traded on U.S. and Canadian 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) 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 Accounts payable and accrued liabilities and Other Liabilities. The Company determined the fair value of the contingent consideration liabilities using a Monte Carlo simulation as of the acquisition dates, which included using estimated financial projections for the acquired businesses. (6) Included in Other Liabilities. The Company utilized a market approach model using the notional amount of the interest rate swap multiplied by the observable inputs of time to maturity and market interest rates. (7) The fair value of the mandatorily redeemable noncontrolling interest is based on the fair value of the underlying subsidiaries owned by GHC One, after taking into account any debt and other noncontrolling interests of its subsidiary investments. The fair value of the owned subsidiaries is determined by reference to either a discounted cash flow or EBITDA multiple, which approximates fair value. (8) Included in Accounts payable and accrued liabilities, and valued based on a valuation model that calculates the differential between the contract price and the market-based forward rate. |
Fair Value, Liabilities Measured on Recurring Basis, Unobservable Input Reconciliation | The following table provides a reconciliation of changes in the Company’s financial liabilities measured at fair value on a recurring basis, using Level 3 inputs: (in thousands) Contingent consideration liabilities Mandatorily redeemable noncontrolling interest As of December 31, 2020 $ 37,174 $ 9,240 Changes in fair value $ — $ 1,051 Accretion of value included in net income $ 606 $ — Settlements or distributions $ (1,849) $ (19) Foreign currency exchange rate changes $ (109) $ — As of March 31, 2021 $ 35,822 $ 10,272 |
Revenue from Contracts with C_2
Revenue from Contracts with Customers (Tables) | 3 Months Ended |
Mar. 31, 2021 | |
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 March 31, December 31, % (in thousands) Change Deferred revenue $ 336,440 $ 343,322 (2) |
Capitalized Contract Cost | The following table presents changes in the Company’s costs to obtain a contract asset: (in thousands) Balance at Costs associated with new contracts Less: Costs amortized during the period Other Balance 2021 $ 24,363 $ 11,833 $ (13,298) $ (95) $ 22,803 |
Earnings (Loss) Per Share (Tabl
Earnings (Loss) Per Share (Tables) | 3 Months Ended |
Mar. 31, 2021 | |
Earnings Per Share [Abstract] | |
Summary of Earnings (Loss) Per Share, Basic and Diluted | The following reflects the Company’s net income (loss) and share data used in the basic and diluted earnings (loss) per share computations using the two-class method: Three Months Ended (in thousands, except per share amounts) 2021 2020 Numerator: Numerator for basic earnings (loss) per share: Net income (loss) attributable to Graham Holdings Company common stockholders $ 112,450 $ (33,245) Less: Dividends paid-common stock outstanding and unvested restricted shares (15,106) (15,289) Undistributed earnings (loss) 97,344 (48,534) Percent allocated to common stockholders (1) 99.33 % 100.00 % 96,693 (48,534) Add: Dividends paid-common stock outstanding 15,005 15,205 Numerator for basic earnings (loss) per share $ 111,698 $ (33,329) Add: Additional undistributed earnings due to dilutive stock options 1 — Numerator for diluted earnings (loss) per share $ 111,699 $ (33,329) Denominator: Denominator for basic earnings (loss) per share: Weighted average shares outstanding 4,967 5,274 Add: Effect of dilutive stock options 10 — Denominator for diluted earnings (loss) per share 4,977 5,274 Graham Holdings Company Common Stockholders: Basic earnings (loss) per share $ 22.49 $ (6.32) Diluted earnings (loss) per share $ 22.44 $ (6.32) _______ (1) Percent of undistributed losses allocated to common stockholders was 100% in the first three months of 2020 as participating securities are not contractually obligated to share in losses. |
Antidilutive Weighted Average Restricted Stock and Options | Diluted earnings (loss) 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 (in thousands) 2021 2020 Weighted average restricted stock 9 12 Weighted average stock options — 27 |
Pension and Postretirement Pl_2
Pension and Postretirement Plans (Tables) | 3 Months Ended |
Mar. 31, 2021 | |
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 (in thousands) 2021 2020 Service cost $ 5,602 $ 5,783 Interest cost 6,654 8,169 Expected return on assets (34,576) (28,444) Amortization of prior service cost 711 708 Recognized actuarial gain (2,892) — Net Periodic Benefit $ (24,501) $ (13,784) |
Schedule of Allocation of Plan Assets | The assets of the Company’s pension plans were allocated as follows: As of March 31, December 31, U.S. equities 61 % 58 % Private investment fund 17 % 18 % U.S. stock index fund 9 % 9 % International equities 8 % 8 % U.S. fixed income 5 % 7 % 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 (in thousands) 2021 2020 Service cost $ 255 $ 238 Interest cost 736 919 Amortization of prior service cost 83 83 Recognized actuarial loss 1,482 1,317 Net Periodic Cost $ 2,556 $ 2,557 |
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 (in thousands) 2021 2020 Interest cost $ 36 $ 62 Amortization of prior service credit (2) (120) Recognized actuarial gain (1,019) (1,097) Net Periodic Benefit $ (985) $ (1,155) |
Other Non-Operating Income (Tab
Other Non-Operating Income (Tables) | 3 Months Ended |
Mar. 31, 2021 | |
Other Nonoperating Income (Expense) [Abstract] | |
Summary of other non-operating income | A summary of non-operating income is as follows: Three Months Ended (in thousands) 2021 2020 Gain on a cost method investment $ 2,723 $ — Gain on sale of businesses 802 107 Gain on sale of cost method investments 94 518 Foreign currency gain, net 3 4,290 Impairment of cost method investments — (2,577) Loss on sale of an equity affiliate — (103) Other gain, net 2,698 453 Total Other Non-Operating Income $ 6,320 $ 2,688 |
Accumulated Other Comprehensi_2
Accumulated Other Comprehensive Income (Loss) (Tables) | 3 Months Ended |
Mar. 31, 2021 | |
Accumulated Other Comprehensive Income (Loss), Net of Tax [Abstract] | |
Summary of Other Comprehensive Loss | The other comprehensive loss consists of the following components: Three Months Ended March 31 2021 2020 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 $ (486) $ — $ (486) $ (37,376) $ — $ (37,376) Pension and other postretirement plans: Amortization of net prior service cost included in net income 792 (213) 579 671 (181) 490 Amortization of net actuarial (gain) loss included in net income (2,429) 656 (1,773) 220 (60) 160 (1,637) 443 (1,194) 891 (241) 650 Cash flow hedges: Gain (loss) for the period 621 (144) 477 (1,578) 361 (1,217) Other Comprehensive Loss $ (1,502) $ 299 $ (1,203) $ (38,063) $ 120 $ (37,943) |
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 Unrealized Gain Cash Flow Accumulated Balance as of December 31, 2020 $ 9,754 $ 595,287 $ (1,727) $ 603,314 Other comprehensive (loss) income before reclassifications (486) — 323 (163) Net amount reclassified from accumulated other comprehensive income (loss) — (1,194) 154 (1,040) Other comprehensive (loss) income, net of tax (486) (1,194) 477 (1,203) Balance as of March 31, 2021 $ 9,268 $ 594,093 $ (1,250) $ 602,111 |
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 Affected Line Item in the Condensed Consolidated Statements of Operations (in thousands) 2021 2020 Pension and Other Postretirement Plans: Amortization of net prior service cost $ 792 $ 671 (1) Amortization of net actuarial (gain) loss (2,429) 220 (1) (1,637) 891 Before tax 443 (241) Provision for (Benefit from) Income Taxes (1,194) 650 Net of Tax Cash Flow Hedges 154 29 Interest expense — 7 Provision for (Benefit from) Income Taxes 154 36 Net of Tax Total reclassification for the period $ (1,040) $ 686 Net of Tax ____________ (1) These accumulated other comprehensive income components are included in the computation of net periodic pension and postretirement plan cost (see Note 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) | 3 Months Ended |
Mar. 31, 2021 | |
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 (in thousands) 2021 2020 Operating Revenues Education $ 329,317 $ 356,378 Television broadcasting 113,625 115,448 Manufacturing 115,960 113,458 Healthcare 50,043 45,994 Other businesses 104,039 101,282 Corporate office — — Intersegment elimination (529) (303) $ 712,455 $ 732,257 Income (Loss) from Operations before Amortization of Intangible Assets and Impairment of Goodwill and Other Long-Lived Assets Education $ 24,148 $ 8,893 Television broadcasting 34,337 37,136 Manufacturing 15,894 13,638 Healthcare 7,921 4,479 Other businesses (18,692) (16,923) Corporate office (14,780) (8,572) $ 48,828 $ 38,651 Amortization of Intangible Assets and Impairment of Goodwill and Other Long-Lived Assets Education $ 5,212 $ 4,201 Television broadcasting 1,359 1,360 Manufacturing 6,987 7,137 Healthcare 781 1,310 Other businesses 645 16,558 Corporate office — — $ 14,984 $ 30,566 Income (Loss) from Operations Education $ 18,936 $ 4,692 Television broadcasting 32,978 35,776 Manufacturing 8,907 6,501 Healthcare 7,140 3,169 Other businesses (19,337) (33,481) Corporate office (14,780) (8,572) $ 33,844 $ 8,085 Equity in Earnings (Losses) of Affiliates, Net 13,428 (1,547) Interest Expense, Net (7,558) (6,527) Non-Operating Pension and Postretirement Benefit Income, Net 28,787 18,403 Gain (Loss) on Marketable Equity Securities, Net 79,214 (100,393) Other Income, Net 6,320 2,688 Income (Loss) Before Income Taxes $ 154,035 $ (79,291) Depreciation of Property, Plant and Equipment Education $ 7,780 $ 7,329 Television broadcasting 3,473 3,343 Manufacturing 2,517 2,527 Healthcare 317 540 Other businesses 2,290 2,790 Corporate office 168 175 $ 16,545 $ 16,704 Pension Service Cost Education $ 2,283 $ 2,585 Television broadcasting 835 796 Manufacturing 395 394 Healthcare 172 159 Other businesses 369 463 Corporate office 1,548 1,386 $ 5,602 $ 5,783 Asset information for the Company’s business segments is as follows: As of (in thousands) March 31, 2021 December 31, 2020 Identifiable Assets Education $ 1,901,257 $ 1,975,104 Television broadcasting 450,403 453,988 Manufacturing 557,631 551,611 Healthcare 160,033 160,654 Other businesses 506,936 517,533 Corporate office 341,980 348,045 $ 3,918,240 $ 4,006,935 Investments in Marketable Equity Securities 700,352 573,102 Investments in Affiliates 169,203 155,777 Prepaid Pension Cost 1,730,625 1,708,305 Total Assets $ 6,518,420 $ 6,444,119 |
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 March 31 (in thousands) 2021 2020 Operating Revenues Kaplan international $ 171,895 $ 199,615 Higher education 75,686 73,537 Supplemental education 79,655 81,288 Kaplan corporate and other 3,363 3,205 Intersegment elimination (1,282) (1,267) $ 329,317 $ 356,378 Income (Loss) From Operations before Amortization of Intangible Assets and Impairment of Long-Lived Assets Kaplan international $ 10,207 $ 18,980 Higher education 6,253 (2,020) Supplemental education 12,497 (6,550) Kaplan corporate and other (4,907) (1,522) Intersegment elimination 98 5 $ 24,148 $ 8,893 Amortization of Intangible Assets $ 4,165 $ 4,201 Impairment of Long-Lived Assets $ 1,047 $ — Income (Loss) from Operations Kaplan international $ 10,207 $ 18,980 Higher education 6,253 (2,020) Supplemental education 12,497 (6,550) Kaplan corporate and other (10,119) (5,723) Intersegment elimination 98 5 $ 18,936 $ 4,692 Depreciation of Property, Plant and Equipment Kaplan international $ 5,252 $ 4,578 Higher education 852 723 Supplemental education 1,576 1,939 Kaplan corporate and other 100 89 $ 7,780 $ 7,329 Pension Service Cost Kaplan international $ 71 $ 112 Higher education 1,083 1,070 Supplemental education 931 1,085 Kaplan corporate and other 198 318 $ 2,283 $ 2,585 Asset information for the Company’s education division is as follows: As of (in thousands) March 31, 2021 December 31, 2020 Identifiable Assets Kaplan international $ 1,387,772 $ 1,455,722 Higher education 188,602 187,123 Supplemental education 265,408 274,687 Kaplan corporate and other 59,475 57,572 $ 1,901,257 $ 1,975,104 |
Organization, Basis of Presen_3
Organization, Basis of Presentation and Recent Accounting Pronouncements (Organization and Basis of Presentation) (Narrative) (Details) | Mar. 31, 2021televisionStation |
Television Broadcasting [Member] | |
Number of television broadcast stations | 7 |
Organization, Basis of Presen_4
Organization, Basis of Presentation and Recent Accounting Pronouncements (Recent Accounting Pronouncements) (Details 1) - USD ($) $ in Thousands | Mar. 31, 2021 | Dec. 31, 2020 |
Item Effected [Line Items] | ||
Other current assets | $ 1,427 | $ 942 |
Accounts payable and accrued liabilities | 492,625 | 520,236 |
Current portion of lease liabilities | 84,749 | 86,797 |
Other Liabilities | 36,591 | 48,768 |
Lease Liabilities | $ 419,131 | $ 428,849 |
Acquisitions and Dispositions_3
Acquisitions and Dispositions of Businesses (Acquisitions) (Narrative) (Details) $ in Thousands | 3 Months Ended | 12 Months Ended | ||
Mar. 31, 2021USD ($) | Mar. 31, 2020USD ($)business | Dec. 31, 2020USD ($)business | May 31, 2020USD ($) | |
Business Acquisition [Line Items] | ||||
Number of businesses acquired | business | 3 | |||
Acquisition purchase price | $ 96,800 | |||
Purchase Price Net of Cash | $ 0 | $ 6,011 | ||
Goodwill expected to be deductible for income tax purposes | $ 3,200 | |||
Automotive [Member] | ||||
Business Acquisition [Line Items] | ||||
Floor plan payables | 28,400 | |||
Education [Member] | ||||
Business Acquisition [Line Items] | ||||
Number of businesses acquired | business | 2 | 2 | ||
Education [Member] | Kaplan International [Member] | ||||
Business Acquisition [Line Items] | ||||
Number of businesses acquired | business | 1 | |||
Education [Member] | Supplemental Education [Member] | ||||
Business Acquisition [Line Items] | ||||
Number of businesses acquired | business | 1 | |||
Other Businesses [Member] | ||||
Business Acquisition [Line Items] | ||||
Number of businesses acquired | business | 1 | |||
Other Businesses [Member] | Framebridge [Member] | ||||
Business Acquisition [Line Items] | ||||
Business Combination, Contingent Consideration, Liability | $ 50,600 | |||
Percentage of Shares Eligible to be Redeemed | 20.00% | |||
Redeemable noncontrolling interest | $ 6,000 | |||
Business Combination, Step Acquisition, Equity Interest in Acquiree, Including Subsequent Acquisition, Percentage | 93.40% | |||
Pinnacle Bank Term Loan [Member] | ||||
Business Acquisition [Line Items] | ||||
Loans Payable to Bank | $ 10,411 | $ 10,692 |
Acquisitions and Dispositions_4
Acquisitions and Dispositions of Businesses (Dispositions and Other) (Narrative) (Details) $ in Thousands | 1 Months Ended | 3 Months Ended |
Mar. 31, 2021USD ($) | Mar. 31, 2021USD ($) | |
Income Statement, Balance Sheet and Additional Disclosures by Disposal Groups, Including Discontinued Operations [Line Items] | ||
Change in redemption value of redeemable noncontrolling interest | $ 761 | |
Purchase of redeemable noncontrolling interest | $ 0 | |
Hoover Treated Wood Products [Member] | Manufacturing [Member] | ||
Income Statement, Balance Sheet and Additional Disclosures by Disposal Groups, Including Discontinued Operations [Line Items] | ||
Purchase of redeemable noncontrolling interest | $ 3,500 | |
Ownership percentage by parent | 100.00% | 100.00% |
Acquisitions and Dispositions_5
Acquisitions and Dispositions of Businesses (Assets Acquired and Liabilities Assumed) (Details 1) - USD ($) $ in Thousands | Mar. 31, 2021 | Dec. 31, 2020 |
Business Acquisition [Line Items] | ||
Goodwill | $ 1,485,137 | $ 1,484,750 |
Series of Individually Immaterial Business Acquisitions [Member] | ||
Business Acquisition [Line Items] | ||
Accounts receivable | 745 | |
Inventory | 3,496 | |
Property, plant and equipment | 3,346 | |
Lease right-of-use assets | 6,580 | |
Goodwill | 73,951 | |
Amortized intangible assets | 14,589 | |
Other assets | 975 | |
Deferred income tax asset | 15,958 | |
Other liabilities | (14,917) | |
Current and noncurrent lease liabilities | (6,593) | |
Redeemable noncontrolling interest | (6,005) | |
Aggregate purchase price, net of cash acquired | $ 92,125 |
Acquisitions and Dispositions_6
Acquisitions and Dispositions of Businesses (Pro Forma Financials) (Details 2) - USD ($) $ in Thousands | 3 Months Ended | |
Mar. 31, 2021 | Mar. 31, 2020 | |
Business Acquisition [Line Items] | ||
Document Fiscal Year Focus | 2021 | |
Pro Forma Operating Revenues | $ 738,331 | |
Pro Forma Net Loss | $ (40,396) |
Investments (Narrative) (Detail
Investments (Narrative) (Details) £ in Millions | 3 Months Ended | |||
Mar. 31, 2021USD ($)investmentshares | Mar. 31, 2020USD ($)investment | Mar. 31, 2021GBP (£)investmentshares | Dec. 31, 2020USD ($)shares | |
Schedule of Investments [Line Items] | ||||
Money Market Investments | $ 175,200,000 | $ 268,800,000 | ||
Marketable equity securities | 700,352,000 | 573,102,000 | ||
Payments to Acquire Marketable Securities | 48,036,000 | $ 0 | ||
Cumulative realized gain (loss) on marketable securities | 0 | (2,000,000) | ||
Proceeds from sales of marketable equity securities | 0 | 48,016,000 | ||
Cumulative undistributed income in investments in affiliates | 39,400,000 | 26,100,000 | ||
Equity Method Investment Impairment | $ 3,600,000 | |||
Number of Equity Method Investments Impaired | investment | 2 | |||
Cost method investments | 38,600,000 | $ 35,700,000 | ||
Gain on a cost method investment | 2,723,000 | $ 0 | ||
Impairment of cost method investments | $ 0 | 2,577,000 | ||
Concentration in single marketable equity security [Member] | ||||
Schedule of Investments [Line Items] | ||||
Number of marketable equity securities greater than 5% of total assets | investment | 0 | 0 | ||
Concentration in single marketable equity security [Member] | Assets, Total [Member] | ||||
Schedule of Investments [Line Items] | ||||
Minimum percentage of plan assets considered as significant concentrations in pension plans | 5.00% | |||
Markel Corporation [Member] | ||||
Schedule of Investments [Line Items] | ||||
Number Of Shares Held In Investment | shares | 44,430 | 44,430 | 28,000 | |
Marketable equity securities | $ 50,600,000 | $ 28,900,000 | ||
Intersection Holdings [Member] | ||||
Schedule of Investments [Line Items] | ||||
Equity Method Investment, Ownership Percentage | 12.00% | 12.00% | ||
Framebridge [Member] | ||||
Schedule of Investments [Line Items] | ||||
Equity Method Investment Impairment | 2,700,000 | |||
Graham Healthcare Group [Member] | ||||
Schedule of Investments [Line Items] | ||||
Revenue from Related Parties | $ 2,500,000 | $ 2,500,000 | ||
Graham Healthcare Group [Member] | Residential Home Health Illinois [Member] | ||||
Schedule of Investments [Line Items] | ||||
Equity Method Investment, Ownership Percentage | 40.00% | 40.00% | ||
Graham Healthcare Group [Member] | Residential Hospice Illinois [Member] | ||||
Schedule of Investments [Line Items] | ||||
Equity Method Investment, Ownership Percentage | 42.50% | 42.50% | ||
Graham Healthcare Group [Member] | Residential And Michigan Hospital Joint Venture [Member] | ||||
Schedule of Investments [Line Items] | ||||
Equity Method Investment, Ownership Percentage | 40.00% | 40.00% | ||
Graham Healthcare Group [Member] | Celtic Healthcare Allegheny Health Network Joint Venture [Member] | ||||
Schedule of Investments [Line Items] | ||||
Equity Method Investment, Ownership Percentage | 40.00% | 40.00% | ||
KIHL [Member] | York Joint Venture [Member] | ||||
Schedule of Investments [Line Items] | ||||
Equity Method Investment, Ownership Percentage | 45.00% | 45.00% | ||
Advances to Affiliate | £ | £ 22 | |||
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 | Mar. 31, 2021 | Dec. 31, 2020 |
Investments [Abstract] | ||
Total Cost | $ 280,883 | $ 232,847 |
Gross unrealized gains | 419,469 | 340,255 |
Total Fair Value | $ 700,352 | $ 573,102 |
Investments (Gain (Loss) on Mar
Investments (Gain (Loss) on Marketable Equity Securities) (Details 2) - USD ($) $ in Thousands | 3 Months Ended | |
Mar. 31, 2021 | Mar. 31, 2020 | |
Investments [Abstract] | ||
Gain (loss) on marketable equity securities, net | $ 79,214 | $ (100,393) |
Less: Net losses in earnings from marketable equity securities sold and donated | 0 | 8,774 |
Net unrealized gains (losses) in earnings from marketable equity securities still held at the end of the period | $ 79,214 | $ (91,619) |
Accounts Receivable (Narrative)
Accounts Receivable (Narrative) (Details) - USD ($) $ in Thousands | 3 Months Ended | |
Mar. 31, 2021 | Mar. 31, 2020 | |
Accounts and Financing Receivable, after Allowance for Credit Loss [Abstract] | ||
Credit loss expense | $ 1,126 | $ 2,429 |
Accounts Receivable (Details 1)
Accounts Receivable (Details 1) - USD ($) $ in Thousands | Mar. 31, 2021 | Dec. 31, 2020 |
Accounts and Financing Receivable, after Allowance for Credit Loss [Abstract] | ||
Receivable from contracts with customers, less estimated credit losses | $ 495,443 | $ 519,577 |
Other receivables | 19,777 | 17,579 |
Accounts receivable, net | 515,220 | 537,156 |
Estimated credit losses | $ 21,126 | $ 21,494 |
Inventories, Contracts in Pro_3
Inventories, Contracts in Progress and Vehicle Floor Plan Payable (Details) - USD ($) $ in Thousands | Mar. 31, 2021 | Dec. 31, 2020 |
Inventory, Net of Allowances, Customer Advances and Progress Billings [Abstract] | ||
Raw materials | $ 46,177 | $ 45,382 |
Work-in-process | 14,534 | 10,402 |
Finished goods | 71,254 | 64,061 |
Contracts in progress | 171 | 777 |
Inventories and contracts in progress | $ 132,136 | $ 120,622 |
Inventories, Contracts in Pro_4
Inventories, Contracts in Progress and Vehicle Floor Plan Payable (Narrative) (Details) - USD ($) | 3 Months Ended | |
Mar. 31, 2021 | Mar. 31, 2020 | |
Inventory [Line Items] | ||
Weighted average interest rate | 5.00% | 5.10% |
Automotive [Member] | ||
Inventory [Line Items] | ||
Borrowing capacity | $ 50,000,000 | |
Vehicle floor plan payable | 28,400,000 | |
Floor plan assistance | $ 600,000 | $ 400,000 |
Automotive [Member] | Vehicle Floor Plan Facility [Member] | ||
Inventory [Line Items] | ||
Weighted average interest rate | 1.20% | 2.60% |
London Interbank Offered Rate (LIBOR) [Member] | Automotive [Member] | Vehicle Floor Plan Facility [Member] | ||
Inventory [Line Items] | ||
Applicable interest rate margin | 1.15% |
Goodwill and Other Intangible_3
Goodwill and Other Intangible Assets (Goodwill) (Narrative) (Details) $ in Thousands | 3 Months Ended | |
Mar. 31, 2021USD ($)segment | Mar. 31, 2020USD ($) | |
Goodwill [Line Items] | ||
Impairment of goodwill and other intangible assets | $ 16,400 | |
Number of reportable segments | segment | 6 | |
Impairment of goodwill and other long-lived assets | $ 1,047 | 16,401 |
Clyde's Restaurant Group [Member] | Other Businesses [Member] | ||
Goodwill [Line Items] | ||
Impairment of goodwill and other intangible assets | 9,700 | |
Automotive [Member] | Other Businesses [Member] | ||
Goodwill [Line Items] | ||
Impairment of Intangible Assets, Indefinite-lived (Excluding Goodwill) | $ 6,700 |
Goodwill and Other Intangible_4
Goodwill and Other Intangible Assets (Other Intangible Assets) (Narrative) (Details) - USD ($) $ in Thousands | 3 Months Ended | |
Mar. 31, 2021 | Mar. 31, 2020 | |
Amortized Intangible Assets [Line Items] | ||
Goodwill and intangible asset impairment charge | $ 1,047 | $ 16,401 |
Amortization of Intangible Assets | ||
Amortization of intangible assets | 13,937 | $ 14,165 |
Estimated amortization of intangible assets, remainder of 2021 | 38,000 | |
Estimated amortization of intangible assets, 2022 | 46,000 | |
Estimated amortization of intangible assets, 2023 | 38,000 | |
Estimated amortization of intangible assets, 2024 | 27,000 | |
Estimated amortization of intangible assets, 2025 | 21,000 | |
Estimated amortization of intangible assets, after 2025 | $ 20,000 |
Goodwill and Other Intangible_5
Goodwill and Other Intangible Assets (Changes in Carrying Amount of Goodwill) (Details 1) $ in Thousands | 3 Months Ended |
Mar. 31, 2021USD ($) | |
Goodwill [Roll Forward] | |
Goodwill, beginning balance | $ 1,838,080 |
Accumulated impairment losses, beginning balance | (353,330) |
Goodwill, net, beginning balance | 1,484,750 |
Foreign currency exchange rate changes | 387 |
Goodwill, ending balance | 1,838,467 |
Accumulated impairment losses, ending balance | (353,330) |
Goodwill, net, ending balance | 1,485,137 |
Education [Member] | |
Goodwill [Roll Forward] | |
Goodwill, beginning balance | 1,183,379 |
Accumulated impairment losses, beginning balance | (331,151) |
Goodwill, net, beginning balance | 852,228 |
Foreign currency exchange rate changes | 387 |
Goodwill, ending balance | 1,183,766 |
Accumulated impairment losses, ending balance | (331,151) |
Goodwill, net, ending balance | 852,615 |
Education [Member] | Kaplan International [Member] | |
Goodwill [Roll Forward] | |
Goodwill, beginning balance | 634,749 |
Accumulated impairment losses, beginning balance | 0 |
Goodwill, net, beginning balance | 634,749 |
Foreign currency exchange rate changes | 361 |
Goodwill, ending balance | 635,110 |
Accumulated impairment losses, ending balance | 0 |
Goodwill, net, ending balance | 635,110 |
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 |
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] | Supplemental Education [Member] | |
Goodwill [Roll Forward] | |
Goodwill, beginning balance | 374,066 |
Accumulated impairment losses, beginning balance | (219,827) |
Goodwill, net, beginning balance | 154,239 |
Foreign currency exchange rate changes | 26 |
Goodwill, ending balance | 374,092 |
Accumulated impairment losses, ending balance | (219,827) |
Goodwill, net, ending balance | 154,265 |
Television Broadcasting [Member] | |
Goodwill [Roll Forward] | |
Goodwill, beginning balance | 190,815 |
Accumulated impairment losses, beginning balance | 0 |
Goodwill, net, beginning balance | 190,815 |
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 | 234,993 |
Accumulated impairment losses, beginning balance | (7,616) |
Goodwill, net, beginning balance | 227,377 |
Foreign currency exchange rate changes | 0 |
Goodwill, ending balance | 234,993 |
Accumulated impairment losses, ending balance | (7,616) |
Goodwill, net, ending balance | 227,377 |
Healthcare [Member] | |
Goodwill [Roll Forward] | |
Goodwill, beginning balance | 98,421 |
Accumulated impairment losses, beginning balance | 0 |
Goodwill, net, beginning balance | 98,421 |
Foreign currency exchange rate changes | 0 |
Goodwill, ending balance | 98,421 |
Accumulated impairment losses, ending balance | 0 |
Goodwill, net, ending balance | 98,421 |
Other Businesses [Member] | |
Goodwill [Roll Forward] | |
Goodwill, beginning balance | 130,472 |
Accumulated impairment losses, beginning balance | (14,563) |
Goodwill, net, beginning balance | 115,909 |
Foreign currency exchange rate changes | 0 |
Goodwill, ending balance | 130,472 |
Accumulated impairment losses, ending balance | (14,563) |
Goodwill, net, ending balance | $ 115,909 |
Goodwill and Other Intangible_6
Goodwill and Other Intangible Assets (Other Intangible Assets) (Details 2) - USD ($) $ in Thousands | 3 Months Ended | 12 Months Ended |
Mar. 31, 2021 | Dec. 31, 2020 | |
Amortized Intangible Assets [Line Items] | ||
Gross Carrying Amount | $ 480,913 | $ 481,950 |
Accumulated Amortization | 290,872 | 277,304 |
Net Carrying Amount | 190,041 | 204,646 |
Indefinite-Lived Intangible Assets [Line Items] | ||
Indefinite-Lived Intangible Assets | 121,050 | 120,437 |
Trade Names and Trademarks [Member] | ||
Indefinite-Lived Intangible Assets [Line Items] | ||
Indefinite-Lived Intangible Assets | 88,042 | 87,429 |
Franchise Agreements [Member] | ||
Indefinite-Lived Intangible Assets [Line Items] | ||
Indefinite-Lived Intangible Assets | 21,858 | 21,858 |
FCC licenses [Member] | ||
Indefinite-Lived Intangible Assets [Line Items] | ||
Indefinite-Lived Intangible Assets | 11,000 | 11,000 |
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 | 293,481 | 294,077 |
Accumulated Amortization | 185,781 | 178,075 |
Net Carrying Amount | $ 107,700 | $ 116,002 |
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 | $ 109,485 | $ 109,809 |
Accumulated Amortization | 57,667 | 54,766 |
Net Carrying Amount | $ 51,818 | $ 55,043 |
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 | 7,322 | 6,888 |
Net Carrying Amount | 10,078 | 10,512 |
Databases and Technology [Member] | ||
Amortized Intangible Assets [Line Items] | ||
Gross Carrying Amount | 34,747 | 34,864 |
Accumulated Amortization | 21,572 | 19,924 |
Net Carrying Amount | $ 13,175 | $ 14,940 |
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 | $ 1,000 | $ 1,000 |
Accumulated Amortization | 963 | 937 |
Net Carrying Amount | $ 37 | $ 63 |
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 | $ 24,800 | $ 24,800 |
Accumulated Amortization | 17,567 | 16,714 |
Net Carrying Amount | $ 7,233 | $ 8,086 |
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) $ in Thousands | Mar. 31, 2021USD ($) | Mar. 31, 2021USD ($) | Mar. 31, 2020USD ($) | Mar. 31, 2021GBP (£) | Dec. 31, 2020USD ($) | |
Debt Instrument [Line Items] | ||||||
Average borrowings outstanding | $ 512,100 | $ 511,400 | ||||
Weighted average interest rate | 5.00% | 5.10% | ||||
Interest Expense, Net | $ (7,558) | $ (6,527) | ||||
Interest expense | 8,448 | $ 7,678 | ||||
5.75% Unsecured Notes due June 1, 2026 [Member] | ||||||
Debt Instrument [Line Items] | ||||||
Unamortized debt issuance costs | $ 3,700 | $ 3,700 | $ 3,900 | |||
Interest rate | 5.75% | 5.75% | 5.75% | 5.75% | ||
Fair value of debt instrument | $ 418,400 | $ 418,400 | $ 421,700 | |||
Carrying value of debt instrument | [1] | 396,289 | 396,289 | 396,112 | ||
Five-Year Credit Agreement dated May 30, 2018 [Member] | ||||||
Debt Instrument [Line Items] | ||||||
Line of credit facility outstanding | 75,621 | 75,621 | £ 55,000,000 | 74,686 | ||
Commercial note with Truist Bank [Member] | ||||||
Debt Instrument [Line Items] | ||||||
Notes Payable to Bank | 24,500 | 24,500 | 25,250 | |||
Pinnacle Bank Term Loan [Member] | ||||||
Debt Instrument [Line Items] | ||||||
Loans Payable to Bank | 10,411 | 10,411 | 10,692 | |||
Pinnacle Bank Line Of Credit [Member] | ||||||
Debt Instrument [Line Items] | ||||||
Line of credit facility outstanding | $ 73 | $ 73 | $ 2,295 | |||
Minimum [Member] | Other Indebtedness [Member] | ||||||
Debt Instrument [Line Items] | ||||||
Interest rate | 0.00% | 0.00% | 0.00% | 0.00% | ||
Maximum [Member] | Other Indebtedness [Member] | ||||||
Debt Instrument [Line Items] | ||||||
Interest rate | 16.00% | 16.00% | 16.00% | 16.00% | ||
London Interbank Offered Rate (LIBOR) [Member] | Five-Year Credit Agreement dated May 30, 2018 [Member] | ||||||
Debt Instrument [Line Items] | ||||||
Applicable interest rate margin | 1.50% | |||||
Securities Subject to Mandatory Redemption [Member] | Graham Healthcare Group [Member] | ||||||
Debt Instrument [Line Items] | ||||||
Interest expense | $ 1,100 | |||||
[1] | The carrying value is net of $3.7 million and $3.9 million of unamortized debt issuance costs as of March 31, 2021 and December 31, 2020, respectively. |
Debt (Details 1)
Debt (Details 1) $ in Thousands | Mar. 31, 2021USD ($) | Mar. 31, 2021GBP (£) | Dec. 31, 2020USD ($) | |
Debt Instrument [Line Items] | ||||
Other indebtedness | $ 3,435 | $ 3,520 | ||
Total Debt | 510,329 | 512,555 | ||
Less: current portion | (4,238) | (6,452) | ||
Total Long-Term Debt | 506,091 | 506,103 | ||
5.75% Unsecured Notes due June 1, 2026 [Member] | ||||
Debt Instrument [Line Items] | ||||
Unsecured notes | [1] | 396,289 | 396,112 | |
Unamortized debt issuance costs | $ 3,700 | $ 3,900 | ||
Interest rate | 5.75% | 5.75% | 5.75% | |
Five-Year Credit Agreement dated May 30, 2018 [Member] | ||||
Debt Instrument [Line Items] | ||||
Credit facility | $ 75,621 | £ 55,000,000 | $ 74,686 | |
Commercial note with Truist Bank [Member] | ||||
Debt Instrument [Line Items] | ||||
Commercial note | 24,500 | 25,250 | ||
Pinnacle Bank Term Loan [Member] | ||||
Debt Instrument [Line Items] | ||||
Loans Payable to Bank | 10,411 | 10,692 | ||
Pinnacle Bank Line Of Credit [Member] | ||||
Debt Instrument [Line Items] | ||||
Credit facility | $ 73 | $ 2,295 | ||
[1] | The carrying value is net of $3.7 million and $3.9 million of unamortized debt issuance costs as of March 31, 2021 and December 31, 2020, respectively. |
Fair Value Measurements (Narrat
Fair Value Measurements (Narrative) (Details) $ in Thousands | 3 Months Ended | |
Mar. 31, 2021USD ($) | Mar. 31, 2020USD ($)investment | |
Fair Value Measurements [Abstract] | ||
Impairment of other long-lived assets | $ 1,000 | |
Impairment of goodwill and other intangible assets | $ 16,400 | |
Gain on a cost method investment | 2,723 | 0 |
Impairment of cost method investments | $ 0 | 2,577 |
Equity Method Investment Impairment | $ 3,600 | |
Number of Equity Method Investments Impaired | investment | 2 |
Fair Value Measurements (Fair V
Fair Value Measurements (Fair Value of Financial Assets and Liabilities) (Details 1) - USD ($) $ in Thousands | Mar. 31, 2021 | Dec. 31, 2020 | |
Assets | |||
Money Market Investments | $ 175,200 | $ 268,800 | |
Marketable equity securities | 700,352 | 573,102 | |
Fair Value, Recurring [Member] | |||
Assets | |||
Money Market Investments | [1] | 175,200 | 268,841 |
Marketable equity securities | [2] | 700,352 | 573,102 |
Other current investments | [3] | 15,228 | 14,480 |
Total Financial Assets | 890,780 | 856,423 | |
Liabilities | |||
Deferred compensation plan liabilities | [4] | 29,442 | 31,178 |
Contingent consideration liabilities | [5] | 35,822 | 37,174 |
Interest rate swap | [6] | 1,720 | 2,342 |
Foreign exchange swap | [7] | 259 | |
Mandatorily redeemable noncontrolling interest | [8] | 10,272 | 9,240 |
Total Financial Liabilities | 77,256 | 80,193 | |
Level 1 | Fair Value, Recurring [Member] | |||
Assets | |||
Money Market Investments | [1] | 0 | 0 |
Marketable equity securities | [2] | 700,352 | 573,102 |
Other current investments | [3] | 10,121 | 10,397 |
Total Financial Assets | 710,473 | 583,499 | |
Liabilities | |||
Deferred compensation plan liabilities | [4] | 0 | 0 |
Contingent consideration liabilities | [5] | 0 | 0 |
Interest rate swap | [6] | 0 | 0 |
Foreign exchange swap | [7] | 0 | |
Mandatorily redeemable noncontrolling interest | [8] | 0 | 0 |
Total Financial Liabilities | 0 | 0 | |
Level 2 | Fair Value, Recurring [Member] | |||
Assets | |||
Money Market Investments | [1] | 175,200 | 268,841 |
Marketable equity securities | [2] | 0 | 0 |
Other current investments | [3] | 5,107 | 4,083 |
Total Financial Assets | 180,307 | 272,924 | |
Liabilities | |||
Deferred compensation plan liabilities | [4] | 29,442 | 31,178 |
Contingent consideration liabilities | [5] | 0 | 0 |
Interest rate swap | [6] | 1,720 | 2,342 |
Foreign exchange swap | [7] | 259 | |
Mandatorily redeemable noncontrolling interest | [8] | 0 | 0 |
Total Financial Liabilities | 31,162 | 33,779 | |
Level 3 | Fair Value, Recurring [Member] | |||
Assets | |||
Money Market Investments | [1] | 0 | 0 |
Marketable equity securities | [2] | 0 | 0 |
Other current investments | [3] | 0 | 0 |
Total Financial Assets | 0 | 0 | |
Liabilities | |||
Deferred compensation plan liabilities | [4] | 0 | 0 |
Contingent consideration liabilities | [5] | 35,822 | 37,174 |
Interest rate swap | [6] | 0 | 0 |
Foreign exchange swap | [7] | 0 | |
Mandatorily redeemable noncontrolling interest | [8] | 10,272 | 9,240 |
Total Financial Liabilities | $ 46,094 | $ 46,414 | |
[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. and Canadian corporations that are actively traded on U.S. and Canadian 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] | 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 Accounts payable and accrued liabilities and Other Liabilities. The Company determined the fair value of the contingent consideration liabilities using a Monte Carlo simulation as of the acquisition dates, which included using estimated financial projections for the acquired businesses. | ||
[6] | Included in Other Liabilities. The Company utilized a market approach model using the notional amount of the interest rate swap multiplied by the observable inputs of time to maturity and market interest rates. | ||
[7] | Included in Accounts payable and accrued liabilities, and valued based on a valuation model that calculates the differential between the contract price and the market-based forward rate. | ||
[8] | The fair value of the mandatorily redeemable noncontrolling interest is based on the fair value of the underlying subsidiaries owned by GHC One, after taking into account any debt and other noncontrolling interests of its subsidiary investments. The fair value of the owned subsidiaries is determined by reference to either a discounted cash flow or EBITDA multiple, which approximates fair value. |
Fair Value Measurements (Reconc
Fair Value Measurements (Reconciliation of Changes in Financial Liabilities Fair Value Using Level 3 Inputs) (Details 2) - Level 3 $ in Thousands | 3 Months Ended |
Mar. 31, 2021USD ($) | |
Contingent consideration liabilities [Member] | |
Fair Value, Liabilities Measured on Recurring Basis, Unobservable Input Reconciliation, Calculation [Roll Forward] | |
Fair Value, Measurement with Unobservable Inputs Reconciliation, Recurring Basis, Liability Value, Beginning Balance | $ 37,174 |
Changes in fair value | 0 |
Accretion of value included in net income | 606 |
Settlements or distributions | (1,849) |
Foreign currency exchange rate changes | (109) |
Fair Value, Measurement with Unobservable Inputs Reconciliation, Recurring Basis, Liability Value, Ending Balance | 35,822 |
Mandatorily redeemable noncontrolling interest [Member] | |
Fair Value, Liabilities Measured on Recurring Basis, Unobservable Input Reconciliation, Calculation [Roll Forward] | |
Fair Value, Measurement with Unobservable Inputs Reconciliation, Recurring Basis, Liability Value, Beginning Balance | 9,240 |
Changes in fair value | 1,051 |
Accretion of value included in net income | 0 |
Settlements or distributions | (19) |
Foreign currency exchange rate changes | 0 |
Fair Value, Measurement with Unobservable Inputs Reconciliation, Recurring Basis, Liability Value, Ending Balance | $ 10,272 |
Income Taxes (Narrative) (Detai
Income Taxes (Narrative) (Details) - USD ($) $ in Thousands | 3 Months Ended | ||
Mar. 31, 2021 | Mar. 31, 2020 | Dec. 31, 2020 | |
Income Taxes [Line Items] | |||
Income Taxes Receivable | $ 15,339 | $ 29,313 | |
Accounts payable and accrued liabilities | $ 492,625 | $ 520,236 | |
Effective Income Tax Rate | 26.90% | 57.30% | |
CableONE [Member] | |||
Income Taxes [Line Items] | |||
Income Taxes Receivable | $ 15,900 | ||
Accounts payable and accrued liabilities | $ 15,900 |
Revenue from Contracts with C_3
Revenue from Contracts with Customers (Narrative) (Details) - USD ($) $ in Millions | 1 Months Ended | 3 Months Ended | ||
Apr. 30, 2020 | Mar. 31, 2021 | Mar. 31, 2020 | Dec. 31, 2020 | |
Disaggregation of Revenue [Line Items] | ||||
Deferred revenue recognized in period related to beginning balance | $ 145.1 | |||
CARES Act relief from COVID-19 [Member] | Medicare Accelerated Advanced Payment Program Relief Fund [Member] | Graham Healthcare Group [Member] | ||||
Disaggregation of Revenue [Line Items] | ||||
Government Relief, CARES Act | $ 31.5 | |||
Transferred over Time [Member] | ||||
Disaggregation of Revenue [Line Items] | ||||
Percentage of Revenue | 70.00% | 73.00% | ||
Transferred at Point in Time [Member] | ||||
Disaggregation of Revenue [Line Items] | ||||
Percentage of Revenue | 30.00% | 27.00% | ||
U.S. [Member] | ||||
Disaggregation of Revenue [Line Items] | ||||
Percentage of Revenue | 77.00% | 74.00% | ||
Non-US [Member] | ||||
Disaggregation of Revenue [Line Items] | ||||
Percentage of Revenue | 23.00% | 26.00% | ||
Kaplan International [Member] | ||||
Disaggregation of Revenue [Line Items] | ||||
Contract with Customer, Asset, Net, Noncurrent | $ 10 | $ 8.7 | ||
Supplemental Education [Member] | Long-term Contract with Customer [Member] | ||||
Disaggregation of Revenue [Line Items] | ||||
Minimum Term of Contract | 12 months | |||
Revenue Remaining Performance Obligation Percentage of Revenue Expected to be Recognized Over Next 12 Months | 64.00% |
Revenue from Contracts with C_4
Revenue from Contracts with Customers (Narrative 2) (Details) - Long-term Contract with Customer [Member] - Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction, Start Date [Axis]: 2021-04-01 $ in Millions | Mar. 31, 2021USD ($) |
Kaplan International [Member] | |
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction [Line Items] | |
Revenue, Remaining Performance Obligation, Amount | $ 7.8 |
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction, Period | 12 months |
Supplemental Education [Member] | |
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction [Line Items] | |
Revenue, Remaining Performance Obligation, Amount | $ 7.3 |
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction, Period | 12 months |
Revenue from Contracts with C_5
Revenue from Contracts with Customers (Contract Liability) (Details) - USD ($) $ in Thousands | 3 Months Ended | |
Mar. 31, 2021 | Dec. 31, 2020 | |
Revenue from Contract with Customer [Abstract] | ||
Deferred Revenue | $ 336,440 | $ 343,322 |
Deferred Revenue, Period Decrease Percentage | (2.00%) |
Revenue from Contracts with C_6
Revenue from Contracts with Customers (Capitalized Contract Cost) (Details) - USD ($) $ in Thousands | 3 Months Ended | |
Mar. 31, 2021 | Dec. 31, 2020 | |
Revenue from Contract with Customer [Abstract] | ||
Contract costs capitalized during the period | $ 11,833 | |
Costs amortized during the period | (13,298) | |
Change in capitalized contract cost, other | (95) | |
Balance of costs to obtain a contract | $ 22,803 | $ 24,363 |
Earnings (Loss) Per Share (Narr
Earnings (Loss) Per Share (Narrative) (Details) - $ / shares | 3 Months Ended | |
Mar. 31, 2021 | Mar. 31, 2020 | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||
Dividends declared per common share | $ 3.02 | $ 2.90 |
Stock Option Plan [Member] | ||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||
Antidilutive securities, shares | 104,000 | 104,000 |
Earnings (Loss) Per Share (Deta
Earnings (Loss) Per Share (Details 1) - USD ($) $ / shares in Units, shares in Thousands, $ in Thousands | 3 Months Ended | |
Mar. 31, 2021 | Mar. 31, 2020 | |
Schedule of Earnings (Loss) Per Share, Basic and Diluted, Including Two Class Method [Line Items] | ||
Net income (loss) attributable to Graham Holdings Company common stockholders | $ 112,450 | $ (33,245) |
Less: Dividends paid-common stock outstanding and unvested restricted shares | (15,106) | (15,289) |
Undistributed earnings (loss) | $ 97,344 | $ (48,534) |
Percent allocated to common stockholders | 99.33% | 100.00% |
Undistributed Earnings Allocated To Common Stockholders | $ 96,693 | $ (48,534) |
Add: Dividends paid-common stock outstanding | 15,005 | 15,205 |
Numerator for basic earnings (loss) per share | 111,698 | (33,329) |
Add: Additional undistributed earnings due to dilutive stock options | 1 | 0 |
Numerator for diluted earnings (loss) per share | $ 111,699 | $ (33,329) |
Weighted average shares outstanding (shares) | 4,967 | 5,274 |
Denominator for diluted earnings (loss) per share (shares) | 4,977 | 5,274 |
Graham Holdings Company Common Stockholders: | ||
Basic income (loss) per common share (in usd per share) | $ 22.49 | $ (6.32) |
Diluted income (loss) per common share (in usd per share) | $ 22.44 | $ (6.32) |
Stock Option Plan [Member] | ||
Schedule of Earnings (Loss) Per Share, Basic and Diluted, Including Two Class Method [Line Items] | ||
Add: Effect of dilutive stock options (shares) | 10 | 0 |
Earnings (Loss) Per Share (De_2
Earnings (Loss) Per Share (Details 2) - shares shares in Thousands | 3 Months Ended | |
Mar. 31, 2021 | Mar. 31, 2020 | |
Earnings Per Share [Abstract] | ||
Weighted average restricted stock | 9 | 12 |
Weighted average stock options | 0 | 27 |
Pension and Postretirement Pl_3
Pension and Postretirement Plans (Narrative) (Details) - Defined Benefit Pension Plan [Member] $ in Millions | 3 Months Ended | 12 Months Ended |
Mar. 31, 2021USD ($)investmentcountry | Dec. 31, 2020USD ($)investment | |
Defined Benefit Plan Disclosure [Line Items] | ||
Percent of plan assets managed internally by the company | 40.00% | |
Percent of plan assets managed by investment companies | 60.00% | |
Number of investment companies actively managing plan assets | country | 2 | |
Percentage of total plan assets | 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% | |
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% | |
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% | |
Private investment fund [Member] | ||
Defined Benefit Plan Disclosure [Line Items] | ||
Percentage of total plan assets | 17.00% | 18.00% |
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% | 10.00% |
Value of investments | $ | $ 885.3 | $ 850.6 |
Percentage of total plan assets | 30.00% | 30.00% |
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 | 1 | 1 |
Single Equity Concentration [Member] | Private investment fund [Member] | ||
Defined Benefit Plan Disclosure [Line Items] | ||
Number of investments the company's pension plan held which individually exceed 10% of total plan assets | 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% |
Pension and Postretirement Pl_4
Pension and Postretirement Plans (Total Benefit/Cost) (Details 1) - USD ($) $ in Thousands | 3 Months Ended | |
Mar. 31, 2021 | Mar. 31, 2020 | |
Defined Benefit Plan Disclosure [Line Items] | ||
Service cost | $ 5,602 | $ 5,783 |
Net Periodic Cost (Benefit) | (24,501) | (13,784) |
Defined Benefit Pension Plan [Member] | ||
Defined Benefit Plan Disclosure [Line Items] | ||
Service cost | 5,602 | 5,783 |
Interest cost | 6,654 | 8,169 |
Expected return on assets | (34,576) | (28,444) |
Amortization of prior service cost (credit) | 711 | 708 |
Recognized actuarial loss (gain) | (2,892) | 0 |
Net Periodic Cost (Benefit) | (24,501) | (13,784) |
Supplemental Executive Retirement Plan (SERP) [Member] | ||
Defined Benefit Plan Disclosure [Line Items] | ||
Service cost | 255 | 238 |
Interest cost | 736 | 919 |
Amortization of prior service cost (credit) | 83 | 83 |
Recognized actuarial loss (gain) | 1,482 | 1,317 |
Net Periodic Cost (Benefit) | 2,556 | 2,557 |
Other Postretirement Plans [Member] | ||
Defined Benefit Plan Disclosure [Line Items] | ||
Interest cost | 36 | 62 |
Amortization of prior service cost (credit) | (2) | (120) |
Recognized actuarial loss (gain) | (1,019) | (1,097) |
Net Periodic Cost (Benefit) | $ (985) | $ (1,155) |
Pension and Postretirement Pl_5
Pension and Postretirement Plans (Asset Allocation) (Details 2) - Defined Benefit Pension Plans [Member] | Mar. 31, 2021 | Dec. 31, 2020 |
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) | 61.00% | 58.00% |
Private investment fund [Member] | ||
Defined Benefit Plan Disclosure [Line Items] | ||
Defined Benefit Plan Assets Allocation (Percent) | 17.00% | 18.00% |
U.S. stock index fund [Member] | ||
Defined Benefit Plan Disclosure [Line Items] | ||
Defined Benefit Plan Assets Allocation (Percent) | 9.00% | 9.00% |
International equities [Member] | ||
Defined Benefit Plan Disclosure [Line Items] | ||
Defined Benefit Plan Assets Allocation (Percent) | 8.00% | 8.00% |
U.S. fixed income [Member] | ||
Defined Benefit Plan Disclosure [Line Items] | ||
Defined Benefit Plan Assets Allocation (Percent) | 5.00% | 7.00% |
Other Non-Operating Income (Nar
Other Non-Operating Income (Narrative) (Details) - USD ($) $ in Thousands | 3 Months Ended | |
Mar. 31, 2021 | Mar. 31, 2020 | |
Schedule of Non-Operating Income (Expense) [Line Items] | ||
Gain on a cost method investment | $ 2,723 | $ 0 |
Impairment of cost method investments | 0 | 2,577 |
Loss on sale of an equity affiliate | $ 0 | $ (103) |
Other Non-Operating Income (Det
Other Non-Operating Income (Details 1) - USD ($) $ in Thousands | 3 Months Ended | |
Mar. 31, 2021 | Mar. 31, 2020 | |
Other Nonoperating Income (Expense) [Abstract] | ||
Gain on a cost method investment | $ 2,723 | $ 0 |
Gain on sale of businesses | 802 | 107 |
Gain on sale of cost method investments | 94 | 518 |
Foreign currency gain, net | 3 | 4,290 |
Impairment of cost method investments | 0 | (2,577) |
Loss on sale of an equity affiliate | 0 | (103) |
Other gain, net | 2,698 | 453 |
Total Other Non-Operating Income | $ 6,320 | $ 2,688 |
Accumulated Other Comprehensi_3
Accumulated Other Comprehensive Income (Loss) (Components of OCI) (Details 1) - USD ($) $ in Thousands | 3 Months Ended | ||
Mar. 31, 2021 | Mar. 31, 2020 | ||
Other Comprehensive Income (Loss) [Line Items] | |||
Other Comprehensive Income (Loss), before tax | $ (1,502) | $ (38,063) | |
Other Comprehensive Income (Loss), income tax | 299 | 120 | |
Other Comprehensive Income (Loss), Net of Tax | (1,203) | (37,943) | |
Foreign Currency Translation Adjustment [Member] | |||
Other Comprehensive Income (Loss) [Line Items] | |||
Other Comprehensive Income (Loss), before Reclassifications, Net of Tax | (486) | ||
Reclassification from Accumulated Other Comprehensive Income, Current Period, Net of Tax | 0 | ||
Other Comprehensive Income (Loss), before tax | (486) | (37,376) | |
Other Comprehensive Income (Loss), income tax | 0 | 0 | |
Other Comprehensive Income (Loss), Net of Tax | (486) | (37,376) | |
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 | (1,637) | 891 | |
Reclassification from AOCI, Current Period, Tax | 443 | (241) | |
Reclassification from Accumulated Other Comprehensive Income, Current Period, Net of Tax | (1,194) | 650 | |
Other Comprehensive Income (Loss), before tax | (1,637) | 891 | |
Other Comprehensive Income (Loss), income tax | 443 | (241) | |
Other Comprehensive Income (Loss), Net of Tax | (1,194) | 650 | |
Net Prior Service (Credit) Cost [Member] | |||
Other Comprehensive Income (Loss) [Line Items] | |||
Reclassification from Accumulated Other Comprehensive Income, Current Period, before Tax | [1] | 792 | 671 |
Reclassification from AOCI, Current Period, Tax | (213) | (181) | |
Reclassification from Accumulated Other Comprehensive Income, Current Period, Net of Tax | 579 | 490 | |
Net Actuarial Gain [Member] | |||
Other Comprehensive Income (Loss) [Line Items] | |||
Reclassification from Accumulated Other Comprehensive Income, Current Period, before Tax | [1] | (2,429) | 220 |
Reclassification from AOCI, Current Period, Tax | 656 | (60) | |
Reclassification from Accumulated Other Comprehensive Income, Current Period, Net of Tax | (1,773) | 160 | |
Cash Flow Hedges [Member] | |||
Other Comprehensive Income (Loss) [Line Items] | |||
Other Comprehensive Income (Loss), before Reclassifications, Net of Tax | 323 | ||
Reclassification from Accumulated Other Comprehensive Income, Current Period, Net of Tax | 154 | ||
Other Comprehensive Income (Loss), before tax | 621 | (1,578) | |
Other Comprehensive Income (Loss), income tax | (144) | 361 | |
Other Comprehensive Income (Loss), Net of Tax | $ 477 | $ (1,217) | |
[1] | These accumulated other comprehensive income components are included in the computation 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 | |
Mar. 31, 2021 | Mar. 31, 2020 | |
AOCI Including Portion Attributable to Noncontrolling Interest, Net of Tax [Roll Forward] | ||
As of | $ 3,766,393 | $ 3,326,796 |
Other Comprehensive Loss, Net of Tax | (1,203) | (37,943) |
As of | 3,864,839 | 3,212,840 |
AOCI Including Portion Attributable to Noncontrolling Interest [Member] | ||
AOCI Including Portion Attributable to Noncontrolling Interest, Net of Tax [Roll Forward] | ||
As of | 603,314 | |
Other comprehensive (loss) income before reclassifications | (163) | |
Net amount reclassified from accumulated other comprehensive income (loss) | (1,040) | |
Other Comprehensive Loss, Net of Tax | (1,203) | |
As of | 602,111 | |
Cumulative Foreign Currency Translation Adjustment [Member] | ||
AOCI Including Portion Attributable to Noncontrolling Interest, Net of Tax [Roll Forward] | ||
As of | 9,754 | |
Other comprehensive (loss) income before reclassifications | (486) | |
Net amount reclassified from accumulated other comprehensive income (loss) | 0 | |
Other Comprehensive Loss, Net of Tax | (486) | (37,376) |
As of | 9,268 | |
Unrealized Gain on Pensions and Other Postretirement Plans [Member] | ||
AOCI Including Portion Attributable to Noncontrolling Interest, Net of Tax [Roll Forward] | ||
As of | 595,287 | |
Other comprehensive (loss) income before reclassifications | 0 | |
Net amount reclassified from accumulated other comprehensive income (loss) | (1,194) | 650 |
Other Comprehensive Loss, Net of Tax | (1,194) | 650 |
As of | 594,093 | |
Cash Flow Hedges [Member] | ||
AOCI Including Portion Attributable to Noncontrolling Interest, Net of Tax [Roll Forward] | ||
As of | (1,727) | |
Other comprehensive (loss) income before reclassifications | 323 | |
Net amount reclassified from accumulated other comprehensive income (loss) | 154 | |
Other Comprehensive Loss, Net of Tax | 477 | $ (1,217) |
As of | $ (1,250) |
Accumulated Other Comprehensi_5
Accumulated Other Comprehensive Income (Loss) (Reclassifications out of AOCI) (Details 3) - USD ($) $ in Thousands | 3 Months Ended | ||
Mar. 31, 2021 | Mar. 31, 2020 | ||
Reclassification Adjustment Out Of Accumulated Other Comprehensive Income [Line Items] | |||
Interest expense | $ 8,448 | $ 7,678 | |
Provision for (Benefit from) Income Taxes | 41,400 | (45,400) | |
Net of Tax | (112,635) | 33,891 | |
Reclassification out of Accumulated Other Comprehensive Income [Member] | |||
Reclassification Adjustment Out Of Accumulated Other Comprehensive Income [Line Items] | |||
Net of Tax | (1,040) | 686 | |
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 | (1,637) | 891 | |
Provision for (Benefit from) Income Tax | 443 | (241) | |
Reclassifications, net of tax | (1,194) | 650 | |
Net Prior Service (Credit) Cost [Member] | |||
Reclassification Adjustment Out Of Accumulated Other Comprehensive Income [Line Items] | |||
Reclassifications, before tax | [1] | 792 | 671 |
Provision for (Benefit from) Income Tax | (213) | (181) | |
Reclassifications, net of tax | 579 | 490 | |
Net Actuarial Gain [Member] | |||
Reclassification Adjustment Out Of Accumulated Other Comprehensive Income [Line Items] | |||
Reclassifications, before tax | [1] | (2,429) | 220 |
Provision for (Benefit from) Income Tax | 656 | (60) | |
Reclassifications, net of tax | (1,773) | 160 | |
Cash Flow Hedges [Member] | |||
Reclassification Adjustment Out Of Accumulated Other Comprehensive Income [Line Items] | |||
Reclassifications, net of tax | 154 | ||
Cash Flow Hedges [Member] | Reclassification out of Accumulated Other Comprehensive Income [Member] | |||
Reclassification Adjustment Out Of Accumulated Other Comprehensive Income [Line Items] | |||
Interest expense | 154 | 29 | |
Provision for (Benefit from) Income Taxes | 0 | 7 | |
Net of Tax | $ 154 | $ 36 | |
[1] | These accumulated other comprehensive income components are included in the computation 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 (Details)
Contingencies (Details) $ in Thousands | Mar. 31, 2021USD ($)claim | Dec. 31, 2020USD ($) |
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 | |
Deferred Charges and Other Assets | $ 148,218 | $ 146,770 |
Maximum [Member] | ||
Loss Contingencies [Line Items] | ||
Loss contingency, estimate of possible loss | $ 10,000 |
Business Segments (Narrative) (
Business Segments (Narrative) (Details) | 3 Months Ended |
Mar. 31, 2021segment | |
Business Segments [Line Items] | |
Number of reportable segments | 6 |
Business Segments (Information
Business Segments (Information by Operating Segment) (Details 2) - USD ($) $ in Thousands | 3 Months Ended | ||
Mar. 31, 2021 | Mar. 31, 2020 | Dec. 31, 2020 | |
Segment Reporting Information [Line Items] | |||
Operating Revenues | $ 712,455 | $ 732,257 | |
Income (Loss) from Operations before Amortization of Intangible Assets and Impairment of Goodwill and Other Long-Lived Assets | 48,828 | 38,651 | |
Amortization of Intangible Assets and Impairment of Goodwill and Other Long-Lived Assets | 14,984 | 30,566 | |
Income (Loss) from Operations | 33,844 | 8,085 | |
Equity in earnings (losses) of affiliates, net | 13,428 | (1,547) | |
Interest Expense, Net | (7,558) | (6,527) | |
Non-operating pension and postretirement benefit income, net | 28,787 | 18,403 | |
Gain (loss) on marketable equity securities, net | 79,214 | (100,393) | |
Other Income, Net | 6,320 | 2,688 | |
Income (Loss) Before Income Taxes | 154,035 | (79,291) | |
Depreciation of property, plant and equipment | 16,545 | 16,704 | |
Pension Service Cost | 5,602 | 5,783 | |
Identifiable Assets | 3,918,240 | $ 4,006,935 | |
Marketable equity securities | 700,352 | 573,102 | |
Investments in Affiliates | 169,203 | 155,777 | |
Prepaid Pension Cost | 1,730,625 | 1,708,305 | |
Total Assets | 6,518,420 | 6,444,119 | |
Amortization of Intangible Assets | 13,937 | 14,165 | |
Impairment of goodwill and other long-lived assets | 1,047 | 16,401 | |
Operating Segments [Member] | Education [Member] | |||
Segment Reporting Information [Line Items] | |||
Operating Revenues | 329,317 | 356,378 | |
Income (Loss) from Operations before Amortization of Intangible Assets and Impairment of Goodwill and Other Long-Lived Assets | 24,148 | 8,893 | |
Amortization of Intangible Assets and Impairment of Goodwill and Other Long-Lived Assets | 5,212 | 4,201 | |
Income (Loss) from Operations | 18,936 | 4,692 | |
Depreciation of property, plant and equipment | 7,780 | 7,329 | |
Pension Service Cost | 2,283 | 2,585 | |
Identifiable Assets | 1,901,257 | 1,975,104 | |
Amortization of Intangible Assets | 4,165 | 4,201 | |
Impairment of goodwill and other long-lived assets | 1,047 | 0 | |
Operating Segments [Member] | Education [Member] | Reportable Subsegments [Member] | Kaplan International [Member] | |||
Segment Reporting Information [Line Items] | |||
Operating Revenues | 171,895 | 199,615 | |
Income (Loss) from Operations before Amortization of Intangible Assets and Impairment of Goodwill and Other Long-Lived Assets | 10,207 | 18,980 | |
Income (Loss) from Operations | 10,207 | 18,980 | |
Depreciation of property, plant and equipment | 5,252 | 4,578 | |
Pension Service Cost | 71 | 112 | |
Identifiable Assets | 1,387,772 | 1,455,722 | |
Operating Segments [Member] | Education [Member] | Reportable Subsegments [Member] | Higher Education [Member] | |||
Segment Reporting Information [Line Items] | |||
Operating Revenues | 75,686 | 73,537 | |
Income (Loss) from Operations before Amortization of Intangible Assets and Impairment of Goodwill and Other Long-Lived Assets | 6,253 | (2,020) | |
Income (Loss) from Operations | 6,253 | (2,020) | |
Depreciation of property, plant and equipment | 852 | 723 | |
Pension Service Cost | 1,083 | 1,070 | |
Identifiable Assets | 188,602 | 187,123 | |
Operating Segments [Member] | Education [Member] | Reportable Subsegments [Member] | Supplemental Education [Member] | |||
Segment Reporting Information [Line Items] | |||
Operating Revenues | 79,655 | 81,288 | |
Income (Loss) from Operations before Amortization of Intangible Assets and Impairment of Goodwill and Other Long-Lived Assets | 12,497 | (6,550) | |
Income (Loss) from Operations | 12,497 | (6,550) | |
Depreciation of property, plant and equipment | 1,576 | 1,939 | |
Pension Service Cost | 931 | 1,085 | |
Identifiable Assets | 265,408 | 274,687 | |
Operating Segments [Member] | Education [Member] | Kaplan Corporate and Other [Member] | |||
Segment Reporting Information [Line Items] | |||
Operating Revenues | 3,363 | 3,205 | |
Income (Loss) from Operations before Amortization of Intangible Assets and Impairment of Goodwill and Other Long-Lived Assets | (4,907) | (1,522) | |
Income (Loss) from Operations | (10,119) | (5,723) | |
Depreciation of property, plant and equipment | 100 | 89 | |
Pension Service Cost | 198 | 318 | |
Identifiable Assets | 59,475 | 57,572 | |
Operating Segments [Member] | Education [Member] | Intersubsegment Eliminations [Member] | |||
Segment Reporting Information [Line Items] | |||
Operating Revenues | (1,282) | (1,267) | |
Income (Loss) from Operations before Amortization of Intangible Assets and Impairment of Goodwill and Other Long-Lived Assets | 98 | 5 | |
Income (Loss) from Operations | 98 | 5 | |
Operating Segments [Member] | Television Broadcasting [Member] | |||
Segment Reporting Information [Line Items] | |||
Operating Revenues | 113,625 | 115,448 | |
Income (Loss) from Operations before Amortization of Intangible Assets and Impairment of Goodwill and Other Long-Lived Assets | 34,337 | 37,136 | |
Amortization of Intangible Assets and Impairment of Goodwill and Other Long-Lived Assets | 1,359 | 1,360 | |
Income (Loss) from Operations | 32,978 | 35,776 | |
Depreciation of property, plant and equipment | 3,473 | 3,343 | |
Pension Service Cost | 835 | 796 | |
Identifiable Assets | 450,403 | 453,988 | |
Operating Segments [Member] | Manufacturing [Member] | |||
Segment Reporting Information [Line Items] | |||
Operating Revenues | 115,960 | 113,458 | |
Income (Loss) from Operations before Amortization of Intangible Assets and Impairment of Goodwill and Other Long-Lived Assets | 15,894 | 13,638 | |
Amortization of Intangible Assets and Impairment of Goodwill and Other Long-Lived Assets | 6,987 | 7,137 | |
Income (Loss) from Operations | 8,907 | 6,501 | |
Depreciation of property, plant and equipment | 2,517 | 2,527 | |
Pension Service Cost | 395 | 394 | |
Identifiable Assets | 557,631 | 551,611 | |
Operating Segments [Member] | Healthcare [Member] | |||
Segment Reporting Information [Line Items] | |||
Operating Revenues | 50,043 | 45,994 | |
Income (Loss) from Operations before Amortization of Intangible Assets and Impairment of Goodwill and Other Long-Lived Assets | 7,921 | 4,479 | |
Amortization of Intangible Assets and Impairment of Goodwill and Other Long-Lived Assets | 781 | 1,310 | |
Income (Loss) from Operations | 7,140 | 3,169 | |
Depreciation of property, plant and equipment | 317 | 540 | |
Pension Service Cost | 172 | 159 | |
Identifiable Assets | 160,033 | 160,654 | |
Operating Segments [Member] | Other Businesses [Member] | |||
Segment Reporting Information [Line Items] | |||
Operating Revenues | 104,039 | 101,282 | |
Income (Loss) from Operations before Amortization of Intangible Assets and Impairment of Goodwill and Other Long-Lived Assets | (18,692) | (16,923) | |
Amortization of Intangible Assets and Impairment of Goodwill and Other Long-Lived Assets | 645 | 16,558 | |
Income (Loss) from Operations | (19,337) | (33,481) | |
Depreciation of property, plant and equipment | 2,290 | 2,790 | |
Pension Service Cost | 369 | 463 | |
Identifiable Assets | 506,936 | 517,533 | |
Corporate Office [Member] | |||
Segment Reporting Information [Line Items] | |||
Operating Revenues | 0 | 0 | |
Income (Loss) from Operations before Amortization of Intangible Assets and Impairment of Goodwill and Other Long-Lived Assets | (14,780) | (8,572) | |
Amortization of Intangible Assets and Impairment of Goodwill and Other Long-Lived Assets | 0 | 0 | |
Income (Loss) from Operations | (14,780) | (8,572) | |
Depreciation of property, plant and equipment | 168 | 175 | |
Pension Service Cost | 1,548 | 1,386 | |
Identifiable Assets | 341,980 | $ 348,045 | |
Intersegment Elimination [Member] | |||
Segment Reporting Information [Line Items] | |||
Operating Revenues | $ (529) | $ (303) |