Cover Page
Cover Page - shares | 6 Months Ended | |
Jun. 30, 2021 | Jul. 30, 2021 | |
Document Type | 10-Q | |
Document Quarterly Report | true | |
Document Period End Date | Jun. 30, 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 $1.00 per share | |
Trading Symbol | GHC | |
Security Exchange Name | NYSE | |
Entity Current Reporting Status | Yes | |
Entity Interactive Data Current | Yes | |
Entity Filer Category | Large Accelerated Filer | |
Entity Small Business | false | |
Entity Emerging Growth Company | false | |
Entity Shell Company | false | |
Entity Central Index Key | 0000104889 | |
Current Fiscal Year End Date | --12-31 | |
Document Fiscal Year Focus | 2021 | |
Document Fiscal Period Focus | Q2 | |
Amendment Flag | false | |
Class A Common Stock [Member] | ||
Entity Common Stock, Shares Outstanding | 964,001 | |
Class B Common Stock [Member] | ||
Entity Common Stock, Shares Outstanding | 4,037,461 |
Condensed Consolidated Statemen
Condensed Consolidated Statements of Operations (Unaudited) - USD ($) shares in Thousands, $ in Thousands | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2021 | Jun. 30, 2020 | Jun. 30, 2021 | Jun. 30, 2020 | |
Operating Revenues | ||||
Operating Revenues | $ 801,152 | $ 652,871 | $ 1,513,607 | $ 1,385,128 |
Operating Costs and Expenses | ||||
Selling, general and administrative | 195,429 | 162,840 | 371,290 | 339,992 |
Depreciation of property, plant and equipment | 16,600 | 22,913 | 33,145 | 39,617 |
Amortization of intangible assets | 13,889 | 14,327 | 27,826 | 28,492 |
Impairment of goodwill and other long-lived assets | 3,768 | 11,511 | 4,815 | 27,912 |
Total Operating Costs and Expenses | 763,561 | 646,994 | 1,442,172 | 1,371,166 |
Income from Operations | 37,591 | 5,877 | 71,435 | 13,962 |
Equity in earnings (losses) of affiliates, net | 1,776 | 1,182 | 15,204 | (365) |
Interest income | 1,876 | 954 | 2,766 | 2,105 |
Interest expense | (7,353) | (7,377) | (15,801) | (15,055) |
Non-operating pension and postretirement benefit income, net | 25,216 | 12,136 | 54,003 | 30,539 |
Gain (loss) on marketable equity securities, net | 83,698 | 39,890 | 162,912 | (60,503) |
Other income, net | 16,122 | 8,100 | 22,442 | 10,788 |
Income (Loss) Before Income Taxes | 158,926 | 60,762 | 312,961 | (18,529) |
Provision for (Benefit from) Income Taxes | 43,000 | 41,900 | 84,400 | (3,500) |
Net Income (Loss) | 115,926 | 18,862 | 228,561 | (15,029) |
Net (Income) Loss Attributable to Noncontrolling Interests | (568) | (8) | (753) | 638 |
Net Income (Loss) Attributable to Graham Holdings Company Common Stockholders | $ 115,358 | $ 18,854 | $ 227,808 | $ (14,391) |
Per Share Information Attributable to Graham Holdings Company Common Stockholders | ||||
Basic net income (loss) per common share (in USD per share) | $ 23.07 | $ 3.61 | $ 45.55 | $ (2.77) |
Basic average number of common shares outstanding (in shares) | 4,968 | 5,196 | 4,968 | 5,235 |
Diluted net income (loss) per common share (in USD per share) | $ 22.99 | $ 3.60 | $ 45.43 | $ (2.77) |
Diluted average number of common shares outstanding (in shares) | 4,985 | 5,201 | 4,981 | 5,235 |
Services [Member] | ||||
Operating Revenues | ||||
Operating Revenues | $ 511,037 | $ 483,595 | $ 994,706 | $ 1,000,232 |
Operating Costs and Expenses | ||||
Cost of services and goods | 306,983 | 298,578 | 599,417 | 631,627 |
Goods [Member] | ||||
Operating Revenues | ||||
Operating Revenues | 290,115 | 169,276 | 518,901 | 384,896 |
Operating Costs and Expenses | ||||
Cost of services and goods | $ 226,892 | $ 136,825 | $ 405,679 | $ 303,526 |
Condensed Consolidated Statem_2
Condensed Consolidated Statements of Comprehensive Income (Loss) (Unaudited) - USD ($) $ in Thousands | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2021 | Jun. 30, 2020 | Jun. 30, 2021 | Jun. 30, 2020 | |
Statement of Comprehensive Income [Abstract] | ||||
Net Income (Loss) | $ 115,926 | $ 18,862 | $ 228,561 | $ (15,029) |
Foreign currency translation adjustments: | ||||
Translation adjustments arising during the period | 1,167 | 16,405 | 681 | (20,971) |
Pension and other postretirement plans: | ||||
Amortization of net prior service cost included in net income | 792 | 668 | 1,584 | 1,339 |
Amortization of net actuarial (gain) loss included in net income | (924) | 390 | (3,353) | 610 |
Total pension and other postretirement plans, before tax | (132) | 1,058 | (1,769) | 1,949 |
Cash flow hedges gain (loss) | 13 | (143) | 634 | (1,721) |
Other Comprehensive Income (Loss), Before Tax | 1,048 | 17,320 | (454) | (20,743) |
Income tax expense (benefit) related to items of other comprehensive incme (loss) | 32 | (252) | 331 | (132) |
Other Comprehensive Income (Loss), Net of Tax | 1,080 | 17,068 | (123) | (20,875) |
Comprehensive Income (Loss) | 117,006 | 35,930 | 228,438 | (35,904) |
Comprehensive (income) loss attributable to noncontrolling interests | (568) | (8) | (753) | 638 |
Total Comprehensive Income (Loss) Attributable to Graham Holdings Company | $ 116,438 | $ 35,922 | $ 227,685 | $ (35,266) |
Condensed Consolidated Balance
Condensed Consolidated Balance Sheets - USD ($) $ in Thousands | Jun. 30, 2021 | Dec. 31, 2020 |
Current Assets | ||
Cash and cash equivalents | $ 114,802 | $ 413,991 |
Restricted cash | 9,982 | 9,063 |
Investments in marketable equity securities and other investments | 765,740 | 587,582 |
Accounts receivable, net | 516,483 | 537,156 |
Inventories and contracts in progress | 126,395 | 120,622 |
Prepaid expenses | 82,633 | 75,523 |
Income taxes receivable | 16,947 | 29,313 |
Other current assets | 7,631 | 942 |
Total Current Assets | 1,640,613 | 1,774,192 |
Property, Plant and Equipment, Net | 373,471 | 378,286 |
Lease Right-of-Use Assets | 444,082 | 462,560 |
Investments in Affiliates | 164,203 | 155,777 |
Goodwill, Net | 1,653,607 | 1,484,750 |
Indefinite-Lived Intangible Assets | 121,417 | 120,437 |
Amortized Intangible Assets, Net | 264,408 | 204,646 |
Prepaid Pension Cost | 1,750,588 | 1,708,305 |
Deferred Income Taxes | 7,124 | 8,396 |
Deferred Charges and Other Assets (includes $748 and $0 of restricted cash) | 157,029 | 146,770 |
Total Assets | 6,576,542 | 6,444,119 |
Current Liabilities | ||
Accounts payable and accrued liabilities | 512,409 | 520,236 |
Deferred revenue | 284,013 | 331,021 |
Income taxes payable | 8,236 | 5,140 |
Current portion of lease liabilities | 86,143 | 86,797 |
Current portion of long-term debt | 4,248 | 6,452 |
Dividends declared | 7,553 | 0 |
Total Current Liabilities | 902,602 | 949,646 |
Accrued Compensation and Related Benefits | 203,296 | 201,918 |
Other Liabilities | 32,511 | 48,768 |
Deferred Income Taxes | 531,350 | 521,274 |
Mandatorily Redeemable Noncontrolling Interest | 9,332 | 9,240 |
Lease Liabilities | 407,740 | 428,849 |
Long-Term Debt | 506,079 | 506,103 |
Total Liabilities | 2,592,910 | 2,665,798 |
Redeemable Noncontrolling Interests | 7,720 | 11,928 |
Preferred Stock | 0 | 0 |
Common Stockholders’ Equity | ||
Common stock | 20,000 | 20,000 |
Capital in excess of par value | 386,882 | 388,159 |
Retained earnings | 7,009,971 | 6,804,822 |
Accumulated other comprehensive income, net of taxes | ||
Cumulative foreign currency translation adjustment | 10,435 | 9,754 |
Unrealized gain on pensions and other postretirement plans | 593,996 | 595,287 |
Cash flow hedges | (1,240) | (1,727) |
Cost of Class B common stock held in treasury | (4,051,958) | (4,056,993) |
Total Common Stockholders’ Equity | 3,968,086 | 3,759,302 |
Noncontrolling Interests | 7,826 | 7,091 |
Total Equity | 3,975,912 | 3,766,393 |
Total Liabilities and Equity | $ 6,576,542 | $ 6,444,119 |
Condensed Consolidated Balanc_2
Condensed Consolidated Balance Sheet (Parentheticals) - USD ($) $ in Thousands | Jun. 30, 2021 | Dec. 31, 2020 |
Statement of Financial Position [Abstract] | ||
Restricted Cash, Noncurrent | $ 748 | $ 0 |
Condensed Consolidated Statem_3
Condensed Consolidated Statements of Cash Flows (Unaudited) - USD ($) | 6 Months Ended | |
Jun. 30, 2021 | Jun. 30, 2020 | |
Cash Flows from Operating Activities | ||
Net Income (Loss) | $ 228,561,000 | $ (15,029,000) |
Adjustments to reconcile net income (loss) to net cash provided by operating activities: | ||
Depreciation, amortization and goodwill and other long-lived asset impairments | 65,786,000 | 96,021,000 |
Amortization of lease right-of-use asset | 36,774,000 | 50,954,000 |
Net pension benefit | (45,413,000) | (21,409,000) |
(Gain) loss on marketable equity securities and cost method investments, net | (165,257,000) | 60,509,000 |
Gain on disposition and write-down of businesses, property, plant and equipment and investments, net | (15,080,000) | (5,444,000) |
Provision for doubtful trade receivables | 2,506,000 | 7,241,000 |
Stock-based compensation expense, net | 3,060,000 | 3,135,000 |
Foreign exchange gain | (680,000) | (3,220,000) |
Equity in (earnings) losses of affiliates, net of distributions | (5,053,000) | 4,263,000 |
Provision for (benefit from) deferred income taxes | 52,856,000 | (1,349,000) |
Accretion expense and change in fair value of contingent consideration liabilities | (2,679,000) | 0 |
Change in operating assets and liabilities: | ||
Accounts receivable, net | 38,541,000 | 164,314,000 |
Inventories | (4,971,000) | 2,840,000 |
Accounts payable and accrued liabilities | (15,592,000) | (99,496,000) |
Deferred revenue | (61,591,000) | (69,105,000) |
Income taxes receivable | 10,681,000 | (6,434,000) |
Lease liabilitites | (41,655,000) | (43,697,000) |
Other assets and other liabilities, net | (9,343,000) | (2,384,000) |
Other | 1,394,000 | (359,000) |
Net Cash Provided by Operating Activities | 72,845,000 | 121,351,000 |
Cash Flows from Investing Activities | ||
Investments in certain businesses, net of cash acquired | (272,428,000) | (20,080,000) |
Purchases of marketable equity securities | (48,036,000) | 0 |
Purchases of property, plant and equipment | (27,502,000) | (40,209,000) |
Proceeds from sales of marketable equity securities | 37,629,000 | 93,775,000 |
Investments in equity affiliates, cost method and other investments | (4,910,000) | (8,011,000) |
Net proceeds from disposition of businesses, property, plant and equipment and investments | 4,735,000 | 862,000 |
Return of investment in equity affiliates | 4,000 | 314,000 |
Net Cash (Used in) Provided by Investing Activities | (310,508,000) | 26,651,000 |
Cash Flows from Financing Activities | ||
Deferred payments of acquisition | (30,866,000) | (5,010,000) |
Dividends paid | (15,106,000) | (15,289,000) |
Net proceeds from vehicle floor plan payable | (9,591,000) | (11,063,000) |
Proceeds from bank overdrafts | 4,433,000 | 9,135,000 |
Purchase of noncontrolling interest | (3,508,000) | 0 |
Net payments under revolving credit facilities | (2,304,000) | 0 |
Repayments of borrowings | (2,071,000) | (75,206,000) |
Issuance of borrowings | 121,000 | 76,984,000 |
Common shares repurchased | 0 | (62,905,000) |
Proceeds from exercise of stock options | 0 | 5,335,000 |
Other | (283,000) | 0 |
Net Cash Used in Financing Activities | (59,175,000) | (78,019,000) |
Effect Of Currency Exchange Rate Change | (684,000) | (4,953,000) |
Net (Decrease) Increase in Cash and Cash Equivalents and Restricted Cash | (297,522,000) | 65,030,000 |
Beginning Cash and Cash Equivalents and Restricted Cash | 423,054,000 | 214,044,000 |
Ending Cash and Cash Equivalents and Restricted Cash | $ 125,532,000 | $ 279,074,000 |
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 (loss) 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 income (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 (loss) attributable to redeemable noncontrolling interests | 126 | ||||||
As of at Mar. 31, 2020 | 5,781 | ||||||
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 | (15,029) | ||||||
Other comprehensive income (loss), net of income taxes | (20,875) | ||||||
As of at Jun. 30, 2020 | 3,213,416 | 20,000 | 384,804 | 6,497,166 | 282,420 | (3,977,722) | 6,748 |
As of at Dec. 31, 2019 | 5,655 | ||||||
As of at Jun. 30, 2020 | 11,831 | ||||||
As of at Mar. 31, 2020 | 3,212,840 | 20,000 | 383,237 | 6,485,893 | 265,352 | (3,948,427) | 6,785 |
Increase (Decrease) in Stockholders' Equity [Roll Forward] | |||||||
Net income (loss) for the period | 18,862 | 18,862 | |||||
Net (income) loss attributable to noncontrolling interest | 0 | 37 | (37) | ||||
Acquisition of redeemable noncontrolling interest | 0 | ||||||
Net income (loss) attributable to redeemable noncontrolling interests | (45) | (45) | |||||
Dividends on common stock | (7,581) | (7,581) | |||||
Repurchase of Class B Common Stock | (29,295) | (29,295) | |||||
Amortization of unearned stock compensation and stock option expense | 1,567 | 1,567 | |||||
Other comprehensive income (loss), net of income taxes | 17,068 | 17,068 | |||||
As of at Jun. 30, 2020 | 3,213,416 | 20,000 | 384,804 | 6,497,166 | 282,420 | (3,977,722) | 6,748 |
As of at Mar. 31, 2020 | 5,781 | ||||||
Increase (Decrease) in Temporary Equity [Roll Forward] | |||||||
Acquisition of redeemable noncontrolling interest | 6,005 | ||||||
Net income (loss) attributable to redeemable noncontrolling interests | 45 | ||||||
As of at Jun. 30, 2020 | 11,831 | ||||||
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 income (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 | ||||||
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 | 228,561 | ||||||
Other comprehensive income (loss), net of income taxes | (123) | ||||||
As of at Jun. 30, 2021 | 3,975,912 | 20,000 | 386,882 | 7,009,971 | 603,191 | (4,051,958) | 7,826 |
As of at Dec. 31, 2020 | 11,928 | ||||||
As of at Jun. 30, 2021 | 7,720 | ||||||
As of at Mar. 31, 2021 | 3,864,839 | 20,000 | 385,257 | 6,902,166 | 602,111 | (4,051,909) | 7,214 |
Increase (Decrease) in Stockholders' Equity [Roll Forward] | |||||||
Net income (loss) for the period | 115,926 | 115,926 | |||||
Net (income) loss attributable to noncontrolling interest | 0 | (699) | 699 | ||||
Net income (loss) attributable to redeemable noncontrolling interests | 131 | 131 | |||||
Change in redemption value of redeemable noncontrolling interest | 65 | 65 | |||||
Distribution to noncontrolling interest | (152) | (152) | |||||
Dividends on common stock | (7,553) | (7,553) | |||||
Issuance of Class B common stock, net of restricted stock award forfeitures | (96) | (47) | (49) | ||||
Amortization of unearned stock compensation and stock option expense | 1,672 | 1,672 | |||||
Other comprehensive income (loss), net of income taxes | 1,080 | 1,080 | |||||
As of at Jun. 30, 2021 | 3,975,912 | $ 20,000 | $ 386,882 | $ 7,009,971 | $ 603,191 | $ (4,051,958) | $ 7,826 |
As of at Mar. 31, 2021 | 7,786 | ||||||
Increase (Decrease) in Temporary Equity [Roll Forward] | |||||||
Net income (loss) attributable to redeemable noncontrolling interests | (131) | ||||||
Change in redemption value of redeemable noncontrolling interests | 65 | ||||||
As of at Jun. 30, 2021 | $ 7,720 |
Organization, Basis of Presenta
Organization, Basis of Presentation and Recent Accounting Pronouncements | 6 Months Ended |
Jun. 30, 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, consumer internet brands, 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 and six months ended June 30, 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 June 30, 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 six months ended June 30, 2021 resulting from our assessments. The Company’s assessments as of and for the six months ended June 30, 2020 resulted in goodwill, indefinite-lived asset and other long-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 | 6 Months Ended |
Jun. 30, 2021 | |
Acquisitions And Dispositions [Abstract] | |
Acquisitions and Dispositions of Businesses | ACQUISITIONS AND DISPOSITIONS OF BUSINESSES Acquisitions . On June 14, 2021, the Company acquired all of the outstanding common shares of Leaf Group Ltd. (Leaf) for $308.6 million in cash and the assumption of $9.2 million in liabilities related to their previous stock compensation plan, which will be paid in the future. Leaf is a consumer internet company that builds creator-driven brands in lifestyle and home and art design categories. The acquisition is expected to provide benefits in the future by diversifying the Company’s business operations and providing operating synergies with other business units. The Company includes Leaf in other businesses. 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 for acquisitions that closed during the first six months of 2021 and 2020 were $1.4 million and $1.1 million, respectively, and were expensed as incurred. The aggregate purchase price of the 2021 and 2020 acquisitions was allocated as follows (2021 on a preliminary basis), based on acquisition date fair values to the following assets and liabilities: Purchase Price Allocation Six Months Ended Year Ended (in thousands) June 30, 2021 December 31, 2020 Accounts receivable $ 16,080 $ 745 Inventory 777 3,496 Property, plant and equipment 6,229 3,346 Lease right-of-use assets 7,744 6,580 Goodwill 167,098 73,951 Amortized intangible assets 88,000 14,589 Other assets 4,507 975 Deferred income taxes 40,850 15,958 Other liabilities (49,797) (14,917) Current and noncurrent lease liabilities (7,742) (6,593) Redeemable noncontrolling interest — (6,005) Aggregate purchase price, net of cash acquired $ 273,746 $ 92,125 The 2021 fair values recorded were based upon preliminary valuations and the estimates and assumptions used in such valuations are subject to change within the measurement period (up to one year from the acquisition date). The recording of deferred tax assets and liabilities, and the amounts of residual goodwill and other intangibles are not yet finalized. Goodwill is calculated as the excess of the consideration transferred over the net assets recognized and represents the estimated future economic benefits arising from other assets acquired that could not be individually identified and separately recognized. The goodwill recorded due to these acquisitions is attributable to the assembled workforces of the acquired companies and expected synergies. The Company expects to deduct $43.4 million and $3.2 million of goodwill for income tax purposes for the acquisitions completed in 2021 and 2020, respectively. 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 current year acquisitions had occurred at the beginning of 2020. The unaudited pro forma information also includes the 2020 acquisitions as if they occurred at the beginning of 2019: Three Months Ended Six Months Ended (in thousands) 2021 2020 2021 2020 Operating revenues $ 841,966 $ 704,738 $ 1,606,299 $ 1,475,834 Net income (loss) 111,086 13,129 217,821 (36,427) 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 | 6 Months Ended |
Jun. 30, 2021 | |
Investments [Abstract] | |
Investments | INVESTMENTS Money Market Investments. As of June 30, 2021 the Company had no money market investments, compared to $268.8 million at December 31, 2020, 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 June 30, December 31, (in thousands) Total cost $ 276,532 $ 232,847 Gross unrealized gains 474,908 340,255 Total Fair Value $ 751,440 $ 573,102 At June 30, 2021 and December 31, 2020, the Company owned 44,430 shares and 28,000 shares, respectively, in Markel Corporation (Markel) valued at $52.7 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 June 30, 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 six months of 2021. There were no purchases of marketable equity securities during the first six months of 2020. During the first six months of 2021, the gross cumulative realized gains from the sales of marketable equity securities were $27.7 million. The total proceeds from such sales were $37.6 million. During the first six months of 2020, the gross cumulative realized gains from the sales of marketable equity securities were $23.0 million. The total proceeds from such sales were $93.8 million. The net gain (loss) on marketable equity securities comprised the following: Three Months Ended Six Months Ended (in thousands) 2021 2020 2021 2020 Gain (loss) on marketable equity securities, net $ 83,698 $ 39,890 $ 162,912 $ (60,503) Less: Net (gains) losses in earnings from marketable equity securities sold and donated (8,161) 4,608 (8,161) 13,382 Net unrealized gains (losses) in earnings from marketable equity securities still held at the end of the period $ 75,537 $ 44,498 $ 154,751 $ (47,121) Investments in Affiliates. As of June 30, 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 the three and six months ended June 30, 2021, the Company recorded $2.7 million and $5.2 million, respectively, in revenue for services provided to the affiliates of GHG. For the three and six months ended June 30, 2020, the Company recorded $2.2 million and $4.7 million, respectively, in revenue for services provided to the affiliates of GHG. The Company had $41.6 million and $26.1 million in its investment account that represents cumulative undistributed income in its investments in affiliates as of June 30, 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 six months ended June 30, 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 (se e Note 2) th at 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 P
Accounts Receivable, Accounts Payable and Accrued Liabilities | 6 Months Ended |
Jun. 30, 2021 | |
Accounts Receivable Accounts Payable And Accrued Liabilities [Abstract] | |
Accounts Receivable Accounts Payable And Accrued Liabilities | ACCOUNTS RECEIVABLE, ACCOUNTS PAYABLE AND ACCRUED LIABILITIES Accounts receivable consist of the following: As of June 30, December 31, (in thousands) Receivables from contracts with customers, less estimated credit losses of $20,445 and $21,494 $ 496,676 $ 519,577 Other receivables 19,807 17,579 $ 516,483 $ 537,156 Credit loss expense was $1.4 million and $4.8 million for the three months ended June 30, 2021 and 2020, respectively. Credit loss expense was $2.5 million and $7.2 million for the six months ended June 30, 2021 and 2020, respectively. Accounts payable and accrued liabilities consist of the following: As of June 30, December 31, (in thousands) Accounts payable $ 116,607 $ 106,215 Accrued compensation and related benefits 139,125 135,493 Other accrued liabilities 256,677 278,528 $ 512,409 $ 520,236 Cash overdrafts of $6.6 million and $2.1 million are included in accounts payable as of June 30, 2021 and December 31, 2020, respectively. |
Inventories, Contracts in Progr
Inventories, Contracts in Progress and Vehicle Floor Plan Payable | 6 Months Ended |
Jun. 30, 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 June 30, December 31, (in thousands) Raw materials $ 47,633 $ 45,382 Work-in-process 15,675 10,402 Finished goods 62,825 64,061 Contracts in progress 262 777 $ 126,395 $ 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 1.6% for the three months ended June 30, 2021 and 2020, respectively. The weighted average interest rate for the floor plan facility was 1.2% and 2.2% for the six months ended June 30, 2021 and 2020, respectively. As of June 30, 2021, the aggregate capacity under the floor plan facility was $50 million, of which $16.4 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 June 30, 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 June 30, 2021 and 2020, the Company recognized a reduction in cost of goods sold of $0.8 million and $0.5 million, respectively, related to manufacturer floor plan assistance. For the six months ended June 30, 2021 and 2020, the Company recognized a reduction in cost of goods sold of $1.4 million and $0.9 million, respectively, related to manufacturer floor plan assistance. |
Goodwill and Other Intangible A
Goodwill and Other Intangible Assets | 6 Months Ended |
Jun. 30, 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 June 30, 2021 and 2020, was $13.9 million and $14.3 million, respectively. Amortization of intangible assets for the six months ended June 30, 2021 and 2020, was $27.8 million and $28.5 million, respectively. Amortization of intangible assets is estimated to be approximately $32 million for the remainder of 2021, $60 million in 2022, $51 million in 2023, $40 million in 2024, $33 million in 2025 and $48 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 Acquisitions — — — — 167,098 167,098 Foreign currency exchange rate changes 1,759 — — — — 1,759 Balance as of June 30, 2021 Goodwill 1,185,138 190,815 234,993 98,421 297,570 2,006,937 Accumulated impairment losses (331,151) — (7,616) — (14,563) (353,330) $ 853,987 $ 190,815 $ 227,377 $ 98,421 $ 283,007 $ 1,653,607 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 1,696 — 63 1,759 Balance as of June 30, 2021 Goodwill 636,445 174,564 374,129 1,185,138 Accumulated impairment losses — (111,324) (219,827) (331,151) $ 636,445 $ 63,240 $ 154,302 $ 853,987 Other intangible assets consist of the following: As of June 30, 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 $ 323,848 $ 193,680 $ 130,168 $ 294,077 $ 178,075 $ 116,002 Trade names and trademarks 2–10 years 160,650 60,987 99,663 109,809 54,766 55,043 Network affiliation agreements 10 years 17,400 7,757 9,643 17,400 6,888 10,512 Databases and technology 3–6 years 36,761 23,148 13,613 34,864 19,924 14,940 Noncompete agreements 2–5 years 1,000 989 11 1,000 937 63 Other 1–8 years 29,800 18,490 11,310 24,800 16,714 8,086 $ 569,459 $ 305,051 $ 264,408 $ 481,950 $ 277,304 $ 204,646 Indefinite-Lived Intangible Assets Trade names and trademarks $ 88,409 $ 87,429 Franchise agreements 21,858 21,858 FCC licenses 11,000 11,000 Licensure and accreditation 150 150 $ 121,417 $ 120,437 |
Debt
Debt | 6 Months Ended |
Jun. 30, 2021 | |
Debt Disclosure [Abstract] | |
Debt | DEBT The Company’s borrowings consist of the following: As of June 30, December 31, (in thousands) 5.75% unsecured notes due June 1, 2026 (1) $ 396,468 $ 396,112 Revolving credit facility 76,181 74,686 Commercial note 23,750 25,250 Pinnacle Bank term loan 10,242 10,692 Pinnacle Bank line of credit — 2,295 Other indebtedness 3,686 3,520 Total Debt $ 510,327 $ 512,555 Less: current portion (4,248) (6,452) Total Long-Term Debt $ 506,079 $ 506,103 ___________ _ (1) The carrying value is net of $3.5 million and $3.9 million of unamortized debt issuance costs as of June 30, 2021 and December 31, 2020, respectively . The outstanding balance on the Company’s revolving credit facility was £55 million as of June 30, 2021 with interest payable at the 3 month GBP LIBOR plus 1.50%. The Company’s other indebtedness at June 30, 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 June 30, 2021. During the three months ended June 30, 2021 and 2020, the Company had average borrowings outstanding of approximately $525.5 million and $510.5 million, respectively, at average annual interest rates of approximately 4.9% and 5.1%, respectively. During the three months ended June 30, 2021 and 2020, the Company incurred net interest expense of $5.5 million and $6.4 million, respectively. During the six months ended June 30, 2021 and 2020, the Company had average borrowings outstanding of approximately $520.0 million and $511.2 million, respectively, at average annual interest rates of approximately 5.0% and 5.1%, respectively. During each of the six months ended June 30, 2021 and 2020, the Company incurred net interest expense of $13.0 million. During the three and six months ended June 30, 2021, the Company recorded interest income of $1.0 million and net interest expense of $0.1 million, respectively, 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 June 30, 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 $396.5 million and $396.1 million, respectively. The carrying value of the Company’s other unsecured debt at June 30, 2021 and December 31, 2020 approximates fair value. |
Fair Value Measurements
Fair Value Measurements | 6 Months Ended |
Jun. 30, 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 June 30, 2021 (in thousands) Level 1 Level 2 Level 3 Total Assets Marketable equity securities (1) $ 751,440 $ — $ — $ 751,440 Other current investments (2) 7,212 7,088 — 14,300 Total Financial Assets $ 758,652 $ 7,088 $ — $ 765,740 Liabilities Deferred compensation plan liabilities (3) $ — $ 30,033 $ — $ 30,033 Contingent consideration liabilities (4) — — 14,693 14,693 Interest rate swap (5) — 1,704 — 1,704 Mandatorily redeemable noncontrolling interest (6) — — 9,332 9,332 Total Financial Liabilities $ — $ 31,737 $ 24,025 $ 55,762 As of December 31, 2020 (in thousands) Level 1 Level 2 Level 3 Total Assets Money market investments (7) $ — $ 268,841 $ — $ 268,841 Marketable equity securities (1) 573,102 — — 573,102 Other current investments (2) 10,397 4,083 — 14,480 Total Financial Assets $ 583,499 $ 272,924 $ — $ 856,423 Liabilities Deferred compensation plan liabilities (3) $ — $ 31,178 $ — $ 31,178 Contingent consideration liabilities (4) — — 37,174 37,174 Interest rate swap (5) — 2,342 — 2,342 Foreign exchange swap (8) — 259 — 259 Mandatorily redeemable noncontrolling interest (6) — — 9,240 9,240 Total Financial Liabilities $ — $ 33,779 $ 46,414 $ 80,193 ____________ (1) 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. (2) Includes U.S. Government Securities, corporate bonds, mutual funds and time deposits. These investments are valued using a market approach based on the quoted market prices of the security or inputs that include quoted market prices for similar instruments and are classified as either Level 1 or Level 2 in the fair value hierarchy. (3) 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. (4) Included in Accounts payable and accrued liabilities and Other Liabilities. The Company determined the fair value of the contingent consideration liabilities using either a Monte Carlo simulation or probability-weighted analysis depending on the type of target included in the contingent consideration requirements (revenue, EBITDA, client retention). All analyses included estimated financial projections for the acquired businesses and acquisition-specific discount rates. (5) Included in Other Liabilities. The Company utilized a market approach model using the notional amount of the interest rate swap multiplied by the observable inputs of time to maturity and market interest rates. (6) The 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 using enterprise value analyses which include an equal weighing between guideline public company and discounted cash flow analyses. (7) The Company’s money market investments are included in cash and cash equivalents and the value considers the liquidity of the counterparty. (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) (3,720) 96 Capital contributions — 37 Accretion of value included in net income (1) 1,041 — Settlements or distributions (19,836) (41) Foreign currency exchange rate changes 34 — As of June 30, 2021 $ 14,693 $ 9,332 ____________ (1) Changes in fair value and accretion of value of contingent consideration liabilities are included in Selling, general and administrative expenses and the changes in fair value of mandatorily redeemable noncontrolling interest is included in Interest income and Interest expense in the Company’s Condensed Consolidated Statements of Operations. During the three and six months ended June 30, 2021, the Company recorded other long-lived asset impairment charges of $3.8 million and $4.8 million, respectively. During the three and six months ended June 30, 2020, the Company recorded other long-lived asset impairment charges of $11.5 million (see Note 16). The remeasurement of the other long-lived assets is classified as a Level 3 fair value assessment due to the significance of unobservable inputs developed in the determination of the fair value. The Company used a discounted cash flow model to determine the estimated fair value of the other long-lived assets. A market value approach was also utilized to supplement the discounted cash flow model. The Company made estimates and assumptions regarding future cash flows, discount rates, and market values. During the first quarter of 2020, the Company recorded goodwill and indefinite-lived intangible asset impairment charges of $16.4 million (see Note 6). The remeasurement of the goodwill and indefinite-lived intangible 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 and indefinite-lived intangible 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 and six months ended June 30, 2021, the Company recorded gains of $7.8 million and $10.5 million, respectively, 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 and six months ended June 30, 2020, the Company recorded a gain of $2.6 million to an equity security that is accounted for as a cost method investment based on observable transactions for identical or similar investments of the same issuer. During the six months ended June 30, 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 | 6 Months Ended |
Jun. 30, 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 June 30, 2021. The Company's effective tax rate for the first six months of 2021 and 2020 was 27.0% and 18.9%, respectively. The Company’s effective tax rate for the first quarter of 2020 was 57.3% and the effective tax rate for the second quarter of 2020 was 69.0%. The effective tax rates for interim periods is generally based on the Company’s estimated effective tax rate for the fiscal year. The Company’s estimated tax rate for 2020 included the adverse impacts of the COVID-19 pandemic, the CARES Act, and losses on marketable equity securities on the Company’s estimated pre- |
Revenue from Contracts with Cus
Revenue from Contracts with Customers | 6 Months Ended |
Jun. 30, 2021 | |
Revenue from Contract with Customer [Abstract] | |
Revenue from Contracts with Customers | REVENUE FROM CONTRACTS WITH CUSTOMERS The Company generated 78% and 77% of its revenue from U.S. domestic sales for the three and six months ended June 30, 2021, respectively. The remaining 22% and 23% of revenue was generated from non-U.S. sales for the three and six months ended June 30, 2021, respectively. For the three and six months ended June 30, 2020, 75% of revenue was from U.S. domestic sales and the remaining 25% of revenue was generated from non-U.S. sales. For the three and six months ended June 30, 2021, the Company recognized 66% and 68% of its revenue over time as control of the services and goods transferred to the customer, and the remaining 34% and 32% at a point in time, when the customer obtained control of the promised goods. For the three and six months ended June 30, 2020, the Company recognized 76% and 74% of its revenue over time, and the remaining 24% and 26% at a point in time. In the second quarter of 2020, GHG received $7.4 million under the CARES Act as a general distribution from the Provider Relief Fund to provide relief for lost revenues and expenses incurred in connection with COVID-19. The healthcare revenues for the three and six months ended June 30, 2020 includes $5.5 million for lost revenues related to COVID-19. Contract Assets. As of June 30, 2021, the Company recognized a contract asset of $11.0 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 $7.0 million related to this performance obligation within the next year. 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 June 30, December 31, % (in thousands) Change Deferred revenue $ 287,706 $ 343,322 (16) 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 Department of Health and Human Services started to recoup this advance 365 days after the payment was issued and for the three and six months ended June 30, 2021, $5.0 million of the balance was recognized in revenue for claims submitted for eligible services. The remaining amount is included in the current deferred revenue balance on the Condensed Consolidated Balance Sheet as of June 30, 2021. As of December 31, 2020, the $31.5 million balance was included in the current and noncurrent deferred revenue balances on the Condensed Consolidated Balance Sheet. The majority of the change in deferred revenue balance is related to the cyclical nature of services in the Kaplan international division. During the six months ended June 30, 2021, the Company recognized $226.4 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 June 30, 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 $8.0 million. Kaplan Supplemental Education expects to recognize 72% 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 $ 16,692 $ (27,192) $ 104 $ 13,967 Other activity includes currency translation adjustments for the six months ended June 30, 2021. |
Earnings (Loss) Per Share
Earnings (Loss) Per Share | 6 Months Ended |
Jun. 30, 2021 | |
Earnings Per Share [Abstract] | |
Earnings (Loss) Per Share | EARNINGS (LOSS) PER SHARE The Company’s unvested restricted stock awards contain nonforfeitable rights to dividends and, therefore, are considered participating securities for purposes of computing earnings per share pursuant to the two-class method. The diluted earnings per share computed under the two-class method is lower than the diluted earnings per share computed under the treasury stock method, resulting in the presentation of the lower amount in diluted earnings per share. The computation of the earnings per share under the two-class method excludes the income attributable to the unvested restricted stock awards from the numerator and excludes the dilutive impact of those underlying shares from the denominator. The following reflects the Company’s net income (loss) and share data used in the basic and diluted earnings (loss) per share computations using the two-class method: Three Months Ended Six Months Ended (in thousands, except per share amounts) 2021 2020 2021 2020 Numerator: Numerator for basic earnings (loss) per share: Net income (loss) attributable to Graham Holdings Company common stockholders $ 115,358 $ 18,854 $ 227,808 $ (14,391) Less: Dividends paid-common stock outstanding and unvested restricted shares (7,553) (7,581) (22,659) (22,870) Undistributed earnings (loss) 107,805 11,273 205,149 (37,261) Percent allocated to common stockholders (1) 99.34 % 99.44 % 99.34 % 100.00 % 107,089 11,210 203,786 (37,261) Add: Dividends paid-common stock outstanding 7,503 7,539 22,508 22,745 Numerator for basic earnings (loss) per share $ 114,592 $ 18,749 $ 226,294 $ (14,516) Add: Additional undistributed earnings due to dilutive stock options 2 — 4 — Numerator for diluted earnings (loss) per share $ 114,594 $ 18,749 $ 226,298 $ (14,516) Denominator: Denominator for basic earnings (loss) per share: Weighted average shares outstanding 4,968 5,196 4,968 5,235 Add: Effect of dilutive stock options 17 5 13 — Denominator for diluted earnings (loss) per share 4,985 5,201 4,981 5,235 Graham Holdings Company Common Stockholders: Basic earnings (loss) per share $ 23.07 $ 3.61 $ 45.55 $ (2.77) Diluted earnings (loss) per share $ 22.99 $ 3.60 $ 45.43 $ (2.77) _______ (1) Percent of undistributed losses allocated to common stockholders was 100% in the first six 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 Six Months Ended (in thousands) 2021 2020 2021 2020 Weighted average restricted stock 13 10 10 10 Weighted average stock options — — — 17 The diluted earnings (loss) per share amounts for the three and six months ended June 30, 2021 and June 30, 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 and six months ended June 30, 2021, the Company declared regular dividends totaling $1.51 and $4.53 per common share, respectively. In the three and six months ended June 30, 2020, the Company declared regular dividends totaling $1.45 and $4.35 per common share, respectively. |
Pension and Postretirement Plan
Pension and Postretirement Plans | 6 Months Ended |
Jun. 30, 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 Six Months Ended (in thousands) 2021 2020 2021 2020 Service cost $ 5,877 $ 5,804 $ 11,479 $ 11,587 Interest cost 6,754 8,140 13,408 16,309 Expected return on assets (33,702) (28,290) (68,278) (56,734) Amortization of prior service cost 712 707 1,423 1,415 Recognized actuarial gain (1,671) — (4,563) — Net Periodic Benefit (22,030) (13,639) (46,531) (27,423) Special separation benefit expense 1,118 6,014 1,118 6,014 Total Benefit $ (20,912) $ (7,625) $ (45,413) $ (21,409) In the second quarter of 2021, the Company recorded $1.1 million in expenses related to a Separation Incentive Program (SIP) for certain Dekko employees, which will be funded from the assets of the Company’s pension plan. In the second quarter of 2020, the Company recorded $6.0 million in expenses related to a SIP for certain Kaplan, Code3 and Decile employees, which was funded from the assets of the Company’s pension plan. The total cost arising from the Company’s Supplemental Executive Retirement Plan (SERP) consists of the following components: Three Months Ended Six Months Ended (in thousands) 2021 2020 2021 2020 Service cost $ 256 $ 239 $ 511 $ 477 Interest cost 735 920 1,471 1,839 Amortization of prior service cost 82 82 165 165 Recognized actuarial loss 1,483 1,317 2,965 2,634 Net Periodic Cost $ 2,556 $ 2,558 $ 5,112 $ 5,115 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 June 30, December 31, U.S. equities 60 % 58 % Private investment fund 18 % 18 % U.S. stock index fund 9 % 9 % International equities 7 % 8 % U.S. fixed income 6 % 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 June 30, 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 June 30, 2021, the pension plan held investments in one common stock and one private investment fund that exceeded 10% of total plan assets, valued at $976.9 million, or approximately 31% 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 Six Months Ended (in thousands) 2021 2020 2021 2020 Interest cost $ 10 $ 22 $ 46 $ 84 Amortization of prior service credit (2) (121) (4) (241) Recognized actuarial gain (736) (927) (1,755) (2,024) Net Periodic Benefit $ (728) $ (1,026) $ (1,713) $ (2,181) |
Other Non-Operating Income
Other Non-Operating Income | 6 Months Ended |
Jun. 30, 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 Six Months Ended (in thousands) 2021 2020 2021 2020 Gain on cost method investments $ 7,783 $ 2,571 $ 10,506 $ 2,571 Gain on sale of cost method investments 6,699 — 6,793 518 Gain on sale of businesses 644 1,653 1,446 1,760 Foreign currency gain (loss), net 677 (1,070) 680 3,220 Gain on acquiring a controlling interest in an equity affiliate — 3,708 — 3,708 Impairment of cost method investments — — — (2,577) Gain on sale of equity affiliates — 1,473 — 1,370 Other gain (loss), net 319 (235) 3,017 218 Total Other Non-Operating Income $ 16,122 $ 8,100 $ 22,442 $ 10,788 The gains on cost method investments result from observable price changes in the fair value of the underlying equity securities accounted for under the cost method (see Notes 3 and 8). During the three and six months ended June 30, 2021, the Company recorded contingent consideration gains of $0.6 million and $1.5 million, respectively, related to the disposition of Kaplan University (KU) in 2018. During the three and six months ended June 30, 2020, the Company recorded contingent consideration gains of $1.7 million and $1.8 million, respectively. |
Accumulated Other Comprehensive
Accumulated Other Comprehensive Income (Loss) | 6 Months Ended |
Jun. 30, 2021 | |
Accumulated Other Comprehensive Income (Loss), Net of Tax [Abstract] | |
Accumulated Other Comprehensive Income (Loss) | ACCUMULATED OTHER COMPREHENSIVE INCOME (LOSS) The other comprehensive income (loss) consists of the following components: Three Months Ended June 30 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 $ 1,167 $ — $ 1,167 $ 16,405 $ — $ 16,405 Pension and other postretirement plans: Amortization of net prior service cost included in net income 792 (214) 578 668 (181) 487 Amortization of net actuarial (gain) loss included in net income (924) 249 (675) 390 (104) 286 (132) 35 (97) 1,058 (285) 773 Cash flow hedges: Gain (loss) for the period 13 (3) 10 (143) 33 (110) Other Comprehensive Income $ 1,048 $ 32 $ 1,080 $ 17,320 $ (252) $ 17,068 Six Months Ended June 30 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 $ 681 $ — $ 681 $ (20,971) $ — $ (20,971) Pension and other postretirement plans: Amortization of net prior service cost included in net income 1,584 (427) 1,157 1,339 (362) 977 Amortization of net actuarial (gain) loss included in net income (3,353) 905 (2,448) 610 (164) 446 (1,769) 478 (1,291) 1,949 (526) 1,423 Cash flow hedges: Gain (loss) for the period 634 (147) 487 (1,721) 394 (1,327) Other Comprehensive Loss $ (454) $ 331 $ (123) $ (20,743) $ (132) $ (20,875) 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 income before reclassifications 681 — 180 861 Net amount reclassified from accumulated other comprehensive income (loss) — (1,291) 307 (984) Other comprehensive income (loss), net of tax 681 (1,291) 487 (123) Balance as of June 30, 2021 $ 10,435 $ 593,996 $ (1,240) $ 603,191 The amounts and line items of reclassifications out of Accumulated Other Comprehensive Income (Loss) are as follows: Three Months Ended Six Months Ended Affected Line Item in the Condensed Consolidated Statements of Operations (in thousands) 2021 2020 2021 2020 Pension and Other Postretirement Plans: Amortization of net prior service cost $ 792 $ 668 $ 1,584 $ 1,339 (1) Amortization of net actuarial (gain) loss (924) 390 (3,353) 610 (1) (132) 1,058 (1,769) 1,949 Before tax 35 (285) 478 (526) Provision for (Benefit from) Income Taxes (97) 773 (1,291) 1,423 Net of Tax Cash Flow Hedges 153 118 307 147 Interest expense — 6 — 13 Provision for (Benefit from) Income Taxes 153 124 307 160 Net of Tax Total reclassification for the period $ 56 $ 897 $ (984) $ 1,583 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 | 6 Months Ended |
Jun. 30, 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. In 2015, Kaplan sold substantially all of the assets of the Kaplan Higher Education Campuses (KHEC) business to Education Corporation of America. In 2018, certain subsidiaries of Kaplan contributed the institutional assets and operations of KU to a new university: an Indiana nonprofit, public-benefit corporation affiliated with Purdue University, known as Purdue University Global. Kaplan could be held liable to the current owners of KU and the KHEC schools related to the pre-sale conduct of the schools, and the pre-sale conduct of the schools has been and could be the subject of future compliance reviews, regulatory proceedings or lawsuits that could result in monetary liabilities or fines or other sanctions. In May 2021, Kaplan received a Notice from the U.S. Department of Education (ED) that the department would be requiring a fact-finding process pursuant to the borrower defense to repayment regulations to determine the validity of more than 800 borrower defense to repayment claims and a request for documents related to several of Kaplan’s previously-owned schools. More recently, Kaplan has received information requests from the ED related to over 1,400 student claims for the ED to grant debt relief. If the ED grants any student claims, it is possible that the ED would seek reimbursement from Kaplan. Based on Kaplan’s initial review of the information received from the ED, Kaplan believes it has legal claims that would bar any student discharge or school liability and expects to vigorously defend any attempt by the ED to hold Kaplan liable for any ultimate student discharges. At this time, Kaplan is uncertain as to the total number of possible claims or the amount of potential liability. |
Business Segments
Business Segments | 6 Months Ended |
Jun. 30, 2021 | |
Segment Reporting [Abstract] | |
Business Segments | BUSINESS SEGMENTS The Company has six reportable segments: Kaplan International, Kaplan Higher Education, Kaplan Supplemental Education, Television Broadcasting, Manufacturing and Healthcare. Across all businesses, restructuring related costs of $29.2 million and $31.3 million were recorded for the three and six months ended June 30, 2020, respectively. Kaplan Higher Education recorded $2.0 million in facility related restructuring costs in the first quarter of 2020. Restructuring related costs across all businesses during the first six months of 2020 were recorded as follows: (in thousands) Kaplan International Higher Education Supplemental Education Kaplan Corporate Total Education Other Businesses Total Severance $ 1,224 $ — $ — $ — $ 1,224 $ — $ 1,224 Facility related costs: Operating lease cost 2,418 3,442 3,296 — 9,156 — 9,156 Accelerated depreciation of property, plant and equipment 1,472 95 1,801 — 3,368 — 3,368 Total Restructuring Costs Included in Segment Income (Loss) from Operations (1) $ 5,114 $ 3,537 $ 5,097 $ — $ 13,748 $ — $ 13,748 Impairment of other long-lived assets: Lease right-of-use assets 3,790 2,062 2,198 — 8,050 1,405 9,455 Property, plant and equipment 1,199 174 597 — 1,970 86 2,056 Non-operating pension and postretirement benefit income, net 1,100 1,431 2,295 189 5,015 999 6,014 Total Restructuring Related Costs $ 11,203 $ 7,204 $ 10,187 $ 189 $ 28,783 $ 2,490 $ 31,273 (1) These amounts are included in the segments’ Income (Loss) from Operations before Amortization of Intangible Assets and Impairment of Goodwill and Other Long-Lived Assets. In June 2020, CRG made the decision to close its restaurant and entertainment venue in Columbia, MD effective July 19, 2020 and recorded accelerated depreciation of property, plant and equipment totaling $2.8 million. The following tables summarize the financial information related to each of the Company’s business segments: Three months ended Six months ended June 30 June 30 (in thousands) 2021 2020 2021 2020 Operating Revenues Education $ 339,984 $ 333,175 $ 669,301 $ 689,553 Television broadcasting 119,966 100,762 233,591 216,210 Manufacturing 141,123 83,239 257,083 196,697 Healthcare 54,696 49,181 104,739 95,175 Other businesses 145,899 86,863 249,938 188,145 Corporate office — — — — Intersegment elimination (516) (349) (1,045) (652) $ 801,152 $ 652,871 $ 1,513,607 $ 1,385,128 Income (Loss) from Operations before Amortization of Intangible Assets and Impairment of Goodwill and Other Long-Lived Assets Education $ 19,221 $ 26,545 $ 43,369 $ 35,438 Television broadcasting 36,964 24,988 71,301 62,124 Manufacturing 19,038 5,506 34,932 19,144 Healthcare 9,375 10,125 17,296 14,604 Other businesses (14,780) (22,429) (33,472) (39,352) Corporate office (14,570) (13,020) (29,350) (21,592) $ 55,248 $ 31,715 $ 104,076 $ 70,366 Amortization of Intangible Assets and Impairment of Goodwill and Other Long-Lived Assets Education $ 6,073 $ 14,291 $ 11,285 $ 18,492 Television broadcasting 1,361 1,361 2,720 2,721 Manufacturing 6,610 6,988 13,597 14,125 Healthcare 780 1,307 1,561 2,617 Other businesses 2,833 1,891 3,478 18,449 Corporate office — — — — $ 17,657 $ 25,838 $ 32,641 $ 56,404 Income (Loss) from Operations Education $ 13,148 $ 12,254 $ 32,084 $ 16,946 Television broadcasting 35,603 23,627 68,581 59,403 Manufacturing 12,428 (1,482) 21,335 5,019 Healthcare 8,595 8,818 15,735 11,987 Other businesses (17,613) (24,320) (36,950) (57,801) Corporate office (14,570) (13,020) (29,350) (21,592) $ 37,591 $ 5,877 $ 71,435 $ 13,962 Equity in Earnings (Losses) of Affiliates, Net 1,776 1,182 15,204 (365) Interest Expense, Net (5,477) (6,423) (13,035) (12,950) Non-Operating Pension and Postretirement Benefit Income, Net 25,216 12,136 54,003 30,539 Gain (Loss) on Marketable Equity Securities, Net 83,698 39,890 162,912 (60,503) Other Income, Net 16,122 8,100 22,442 10,788 Income (Loss) Before Income Taxes $ 158,926 $ 60,762 $ 312,961 $ (18,529) Depreciation of Property, Plant and Equipment Education $ 7,482 $ 10,324 $ 15,262 $ 17,653 Television broadcasting 3,543 3,446 7,016 6,789 Manufacturing 2,427 2,526 4,944 5,053 Healthcare 331 493 648 1,033 Other businesses 2,659 5,948 4,949 8,738 Corporate office 158 176 326 351 $ 16,600 $ 22,913 $ 33,145 $ 39,617 Pension Service Cost Education $ 2,398 $ 2,592 $ 4,681 $ 5,177 Television broadcasting 956 836 1,791 1,632 Manufacturing 246 395 641 789 Healthcare 108 112 280 271 Other businesses 487 403 856 866 Corporate office 1,682 1,466 3,230 2,852 $ 5,877 $ 5,804 $ 11,479 $ 11,587 Asset information for the Company’s business segments is as follows: As of (in thousands) June 30, 2021 December 31, 2020 Identifiable Assets Education $ 1,854,482 $ 1,975,104 Television broadcasting 446,499 453,988 Manufacturing 555,155 551,611 Healthcare 165,521 160,654 Other businesses 805,245 517,533 Corporate office 83,409 348,045 $ 3,910,311 $ 4,006,935 Investments in Marketable Equity Securities 751,440 573,102 Investments in Affiliates 164,203 155,777 Prepaid Pension Cost 1,750,588 1,708,305 Total Assets $ 6,576,542 $ 6,444,119 The Company’s education division comprises the following operating segments: Three Months Ended Six months ended June 30 June 30 (in thousands) 2021 2020 2021 2020 Operating Revenues Kaplan international $ 181,276 $ 164,713 $ 353,171 $ 364,328 Higher education 78,740 86,453 154,426 159,990 Supplemental education 77,911 79,785 157,566 161,073 Kaplan corporate and other 3,615 3,039 6,978 6,244 Intersegment elimination (1,558) (815) (2,840) (2,082) $ 339,984 $ 333,175 $ 669,301 $ 689,553 Income (Loss) From Operations before Amortization of Intangible Assets and Impairment of Long-Lived Assets Kaplan international $ 14,077 $ 16,035 $ 24,284 $ 35,015 Higher education 2,374 17,050 8,627 15,030 Supplemental education 8,813 330 21,310 (6,220) Kaplan corporate and other (6,042) (6,870) (10,949) (8,392) Intersegment elimination (1) — 97 5 $ 19,221 $ 26,545 $ 43,369 $ 35,438 Amortization of Intangible Assets $ 3,914 $ 4,271 $ 8,079 $ 8,472 Impairment of Long-Lived Assets $ 2,159 $ 10,020 $ 3,206 $ 10,020 Income (Loss) from Operations Kaplan international $ 14,077 $ 16,035 $ 24,284 $ 35,015 Higher education 2,374 17,050 8,627 15,030 Supplemental education 8,813 330 21,310 (6,220) Kaplan corporate and other (12,115) (21,161) (22,234) (26,884) Intersegment elimination (1) — 97 5 $ 13,148 $ 12,254 $ 32,084 $ 16,946 Depreciation of Property, Plant and Equipment Kaplan international $ 4,835 $ 5,619 $ 10,087 $ 10,197 Higher education 873 832 1,725 1,555 Supplemental education 1,670 3,772 3,246 5,711 Kaplan corporate and other 104 101 204 190 $ 7,482 $ 10,324 $ 15,262 $ 17,653 Pension Service Cost Kaplan international $ 77 $ 120 $ 148 $ 232 Higher education 1,137 1,070 2,220 2,140 Supplemental education 976 1,084 1,907 2,169 Kaplan corporate and other 208 318 406 636 $ 2,398 $ 2,592 $ 4,681 $ 5,177 Asset information for the Company’s education division is as follows: As of (in thousands) June 30, 2021 December 31, 2020 Identifiable Assets Kaplan international $ 1,346,838 $ 1,455,722 Higher education 181,508 187,123 Supplemental education 261,229 274,687 Kaplan corporate and other 64,907 57,572 $ 1,854,482 $ 1,975,104 |
Organization, Basis of Presen_2
Organization, Basis of Presentation And Recent Accounting Pronouncements (Policies) | 6 Months Ended |
Jun. 30, 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 and six months ended June 30, 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) | 6 Months Ended |
Jun. 30, 2021 | |
Acquisitions And Dispositions [Abstract] | |
Schedule of assets acquired and liabilities assumed | The aggregate purchase price of the 2021 and 2020 acquisitions was allocated as follows (2021 on a preliminary basis), based on acquisition date fair values to the following assets and liabilities: Purchase Price Allocation Six Months Ended Year Ended (in thousands) June 30, 2021 December 31, 2020 Accounts receivable $ 16,080 $ 745 Inventory 777 3,496 Property, plant and equipment 6,229 3,346 Lease right-of-use assets 7,744 6,580 Goodwill 167,098 73,951 Amortized intangible assets 88,000 14,589 Other assets 4,507 975 Deferred income taxes 40,850 15,958 Other liabilities (49,797) (14,917) Current and noncurrent lease liabilities (7,742) (6,593) Redeemable noncontrolling interest — (6,005) Aggregate purchase price, net of cash acquired $ 273,746 $ 92,125 |
Acquisition Pro Forma Financial Information | The following unaudited pro forma financial information presents the Company’s results as if the current year acquisitions had occurred at the beginning of 2020. The unaudited pro forma information also includes the 2020 acquisitions as if they occurred at the beginning of 2019: Three Months Ended Six Months Ended (in thousands) 2021 2020 2021 2020 Operating revenues $ 841,966 $ 704,738 $ 1,606,299 $ 1,475,834 Net income (loss) 111,086 13,129 217,821 (36,427) |
Investments (Tables)
Investments (Tables) | 6 Months Ended |
Jun. 30, 2021 | |
Investments [Abstract] | |
Investments in Marketable Equity Securities | Investments in marketable equity securities consist of the following: As of June 30, December 31, (in thousands) Total cost $ 276,532 $ 232,847 Gross unrealized gains 474,908 340,255 Total Fair Value $ 751,440 $ 573,102 |
Gain (Loss) on Marketable Equity Securities | The net gain (loss) on marketable equity securities comprised the following: Three Months Ended Six Months Ended (in thousands) 2021 2020 2021 2020 Gain (loss) on marketable equity securities, net $ 83,698 $ 39,890 $ 162,912 $ (60,503) Less: Net (gains) losses in earnings from marketable equity securities sold and donated (8,161) 4,608 (8,161) 13,382 Net unrealized gains (losses) in earnings from marketable equity securities still held at the end of the period $ 75,537 $ 44,498 $ 154,751 $ (47,121) |
Accounts Receivable, Accounts_2
Accounts Receivable, Accounts Payable and Accrued Liabilities (Tables) | 6 Months Ended |
Jun. 30, 2021 | |
Accounts Receivable Accounts Payable And Accrued Liabilities [Abstract] | |
Schedule of Accounts Receivable | Accounts receivable consist of the following: As of June 30, December 31, (in thousands) Receivables from contracts with customers, less estimated credit losses of $20,445 and $21,494 $ 496,676 $ 519,577 Other receivables 19,807 17,579 $ 516,483 $ 537,156 |
Schedule of Accounts Payable and Accrued Liabilities | Accounts payable and accrued liabilities consist of the following: As of June 30, December 31, (in thousands) Accounts payable $ 116,607 $ 106,215 Accrued compensation and related benefits 139,125 135,493 Other accrued liabilities 256,677 278,528 $ 512,409 $ 520,236 |
Inventories, Contracts in Pro_2
Inventories, Contracts in Progress and Vehicle Floor Plan Payable (Tables) | 6 Months Ended |
Jun. 30, 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 June 30, December 31, (in thousands) Raw materials $ 47,633 $ 45,382 Work-in-process 15,675 10,402 Finished goods 62,825 64,061 Contracts in progress 262 777 $ 126,395 $ 120,622 |
Goodwill and Other Intangible_2
Goodwill and Other Intangible Assets (Tables) | 6 Months Ended |
Jun. 30, 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 Acquisitions — — — — 167,098 167,098 Foreign currency exchange rate changes 1,759 — — — — 1,759 Balance as of June 30, 2021 Goodwill 1,185,138 190,815 234,993 98,421 297,570 2,006,937 Accumulated impairment losses (331,151) — (7,616) — (14,563) (353,330) $ 853,987 $ 190,815 $ 227,377 $ 98,421 $ 283,007 $ 1,653,607 |
Other Intangible Assets | Other intangible assets consist of the following: As of June 30, 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 $ 323,848 $ 193,680 $ 130,168 $ 294,077 $ 178,075 $ 116,002 Trade names and trademarks 2–10 years 160,650 60,987 99,663 109,809 54,766 55,043 Network affiliation agreements 10 years 17,400 7,757 9,643 17,400 6,888 10,512 Databases and technology 3–6 years 36,761 23,148 13,613 34,864 19,924 14,940 Noncompete agreements 2–5 years 1,000 989 11 1,000 937 63 Other 1–8 years 29,800 18,490 11,310 24,800 16,714 8,086 $ 569,459 $ 305,051 $ 264,408 $ 481,950 $ 277,304 $ 204,646 Indefinite-Lived Intangible Assets Trade names and trademarks $ 88,409 $ 87,429 Franchise agreements 21,858 21,858 FCC licenses 11,000 11,000 Licensure and accreditation 150 150 $ 121,417 $ 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 1,696 — 63 1,759 Balance as of June 30, 2021 Goodwill 636,445 174,564 374,129 1,185,138 Accumulated impairment losses — (111,324) (219,827) (331,151) $ 636,445 $ 63,240 $ 154,302 $ 853,987 |
Debt (Tables)
Debt (Tables) | 6 Months Ended |
Jun. 30, 2021 | |
Debt Disclosure [Abstract] | |
Components of Debt | The Company’s borrowings consist of the following: As of June 30, December 31, (in thousands) 5.75% unsecured notes due June 1, 2026 (1) $ 396,468 $ 396,112 Revolving credit facility 76,181 74,686 Commercial note 23,750 25,250 Pinnacle Bank term loan 10,242 10,692 Pinnacle Bank line of credit — 2,295 Other indebtedness 3,686 3,520 Total Debt $ 510,327 $ 512,555 Less: current portion (4,248) (6,452) Total Long-Term Debt $ 506,079 $ 506,103 ___________ _ (1) The carrying value is net of $3.5 million and $3.9 million of unamortized debt issuance costs as of June 30, 2021 and December 31, 2020, respectively . |
Fair Value Measurements (Tables
Fair Value Measurements (Tables) | 6 Months Ended |
Jun. 30, 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 June 30, 2021 (in thousands) Level 1 Level 2 Level 3 Total Assets Marketable equity securities (1) $ 751,440 $ — $ — $ 751,440 Other current investments (2) 7,212 7,088 — 14,300 Total Financial Assets $ 758,652 $ 7,088 $ — $ 765,740 Liabilities Deferred compensation plan liabilities (3) $ — $ 30,033 $ — $ 30,033 Contingent consideration liabilities (4) — — 14,693 14,693 Interest rate swap (5) — 1,704 — 1,704 Mandatorily redeemable noncontrolling interest (6) — — 9,332 9,332 Total Financial Liabilities $ — $ 31,737 $ 24,025 $ 55,762 As of December 31, 2020 (in thousands) Level 1 Level 2 Level 3 Total Assets Money market investments (7) $ — $ 268,841 $ — $ 268,841 Marketable equity securities (1) 573,102 — — 573,102 Other current investments (2) 10,397 4,083 — 14,480 Total Financial Assets $ 583,499 $ 272,924 $ — $ 856,423 Liabilities Deferred compensation plan liabilities (3) $ — $ 31,178 $ — $ 31,178 Contingent consideration liabilities (4) — — 37,174 37,174 Interest rate swap (5) — 2,342 — 2,342 Foreign exchange swap (8) — 259 — 259 Mandatorily redeemable noncontrolling interest (6) — — 9,240 9,240 Total Financial Liabilities $ — $ 33,779 $ 46,414 $ 80,193 ____________ (1) 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. (2) Includes U.S. Government Securities, corporate bonds, mutual funds and time deposits. These investments are valued using a market approach based on the quoted market prices of the security or inputs that include quoted market prices for similar instruments and are classified as either Level 1 or Level 2 in the fair value hierarchy. (3) 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. (4) Included in Accounts payable and accrued liabilities and Other Liabilities. The Company determined the fair value of the contingent consideration liabilities using either a Monte Carlo simulation or probability-weighted analysis depending on the type of target included in the contingent consideration requirements (revenue, EBITDA, client retention). All analyses included estimated financial projections for the acquired businesses and acquisition-specific discount rates. (5) Included in Other Liabilities. The Company utilized a market approach model using the notional amount of the interest rate swap multiplied by the observable inputs of time to maturity and market interest rates. (6) The 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 using enterprise value analyses which include an equal weighing between guideline public company and discounted cash flow analyses. (7) The Company’s money market investments are included in cash and cash equivalents and the value considers the liquidity of the counterparty. (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) (3,720) 96 Capital contributions — 37 Accretion of value included in net income (1) 1,041 — Settlements or distributions (19,836) (41) Foreign currency exchange rate changes 34 — As of June 30, 2021 $ 14,693 $ 9,332 ____________ (1) Changes in fair value and accretion of value of contingent consideration liabilities are included in Selling, general and administrative expenses and the changes in fair value of mandatorily redeemable noncontrolling interest is included in Interest income and Interest expense in the Company’s Condensed Consolidated Statements of Operations. |
Revenue from Contracts with C_2
Revenue from Contracts with Customers (Tables) | 6 Months Ended |
Jun. 30, 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 June 30, December 31, % (in thousands) Change Deferred revenue $ 287,706 $ 343,322 (16) |
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 $ 16,692 $ (27,192) $ 104 $ 13,967 |
Earnings (Loss) Per Share (Tabl
Earnings (Loss) Per Share (Tables) | 6 Months Ended |
Jun. 30, 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 Six Months Ended (in thousands, except per share amounts) 2021 2020 2021 2020 Numerator: Numerator for basic earnings (loss) per share: Net income (loss) attributable to Graham Holdings Company common stockholders $ 115,358 $ 18,854 $ 227,808 $ (14,391) Less: Dividends paid-common stock outstanding and unvested restricted shares (7,553) (7,581) (22,659) (22,870) Undistributed earnings (loss) 107,805 11,273 205,149 (37,261) Percent allocated to common stockholders (1) 99.34 % 99.44 % 99.34 % 100.00 % 107,089 11,210 203,786 (37,261) Add: Dividends paid-common stock outstanding 7,503 7,539 22,508 22,745 Numerator for basic earnings (loss) per share $ 114,592 $ 18,749 $ 226,294 $ (14,516) Add: Additional undistributed earnings due to dilutive stock options 2 — 4 — Numerator for diluted earnings (loss) per share $ 114,594 $ 18,749 $ 226,298 $ (14,516) Denominator: Denominator for basic earnings (loss) per share: Weighted average shares outstanding 4,968 5,196 4,968 5,235 Add: Effect of dilutive stock options 17 5 13 — Denominator for diluted earnings (loss) per share 4,985 5,201 4,981 5,235 Graham Holdings Company Common Stockholders: Basic earnings (loss) per share $ 23.07 $ 3.61 $ 45.55 $ (2.77) Diluted earnings (loss) per share $ 22.99 $ 3.60 $ 45.43 $ (2.77) _______ (1) Percent of undistributed losses allocated to common stockholders was 100% in the first six 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 Six Months Ended (in thousands) 2021 2020 2021 2020 Weighted average restricted stock 13 10 10 10 Weighted average stock options — — — 17 |
Pension and Postretirement Pl_2
Pension and Postretirement Plans (Tables) | 6 Months Ended |
Jun. 30, 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 Six Months Ended (in thousands) 2021 2020 2021 2020 Service cost $ 5,877 $ 5,804 $ 11,479 $ 11,587 Interest cost 6,754 8,140 13,408 16,309 Expected return on assets (33,702) (28,290) (68,278) (56,734) Amortization of prior service cost 712 707 1,423 1,415 Recognized actuarial gain (1,671) — (4,563) — Net Periodic Benefit (22,030) (13,639) (46,531) (27,423) Special separation benefit expense 1,118 6,014 1,118 6,014 Total Benefit $ (20,912) $ (7,625) $ (45,413) $ (21,409) |
Schedule of Allocation of Plan Assets | The assets of the Company’s pension plans were allocated as follows: As of June 30, December 31, U.S. equities 60 % 58 % Private investment fund 18 % 18 % U.S. stock index fund 9 % 9 % International equities 7 % 8 % U.S. fixed income 6 % 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 Six Months Ended (in thousands) 2021 2020 2021 2020 Service cost $ 256 $ 239 $ 511 $ 477 Interest cost 735 920 1,471 1,839 Amortization of prior service cost 82 82 165 165 Recognized actuarial loss 1,483 1,317 2,965 2,634 Net Periodic Cost $ 2,556 $ 2,558 $ 5,112 $ 5,115 |
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 Six Months Ended (in thousands) 2021 2020 2021 2020 Interest cost $ 10 $ 22 $ 46 $ 84 Amortization of prior service credit (2) (121) (4) (241) Recognized actuarial gain (736) (927) (1,755) (2,024) Net Periodic Benefit $ (728) $ (1,026) $ (1,713) $ (2,181) |
Other Non-Operating Income (Tab
Other Non-Operating Income (Tables) | 6 Months Ended |
Jun. 30, 2021 | |
Other Nonoperating Income (Expense) [Abstract] | |
Summary of other non-operating income | A summary of non-operating income is as follows: Three Months Ended Six Months Ended (in thousands) 2021 2020 2021 2020 Gain on cost method investments $ 7,783 $ 2,571 $ 10,506 $ 2,571 Gain on sale of cost method investments 6,699 — 6,793 518 Gain on sale of businesses 644 1,653 1,446 1,760 Foreign currency gain (loss), net 677 (1,070) 680 3,220 Gain on acquiring a controlling interest in an equity affiliate — 3,708 — 3,708 Impairment of cost method investments — — — (2,577) Gain on sale of equity affiliates — 1,473 — 1,370 Other gain (loss), net 319 (235) 3,017 218 Total Other Non-Operating Income $ 16,122 $ 8,100 $ 22,442 $ 10,788 |
Accumulated Other Comprehensi_2
Accumulated Other Comprehensive Income (Loss) (Tables) | 6 Months Ended |
Jun. 30, 2021 | |
Accumulated Other Comprehensive Income (Loss), Net of Tax [Abstract] | |
Summary of Other Comprehensive Income (Loss) | The other comprehensive income (loss) consists of the following components: Three Months Ended June 30 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 $ 1,167 $ — $ 1,167 $ 16,405 $ — $ 16,405 Pension and other postretirement plans: Amortization of net prior service cost included in net income 792 (214) 578 668 (181) 487 Amortization of net actuarial (gain) loss included in net income (924) 249 (675) 390 (104) 286 (132) 35 (97) 1,058 (285) 773 Cash flow hedges: Gain (loss) for the period 13 (3) 10 (143) 33 (110) Other Comprehensive Income $ 1,048 $ 32 $ 1,080 $ 17,320 $ (252) $ 17,068 Six Months Ended June 30 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 $ 681 $ — $ 681 $ (20,971) $ — $ (20,971) Pension and other postretirement plans: Amortization of net prior service cost included in net income 1,584 (427) 1,157 1,339 (362) 977 Amortization of net actuarial (gain) loss included in net income (3,353) 905 (2,448) 610 (164) 446 (1,769) 478 (1,291) 1,949 (526) 1,423 Cash flow hedges: Gain (loss) for the period 634 (147) 487 (1,721) 394 (1,327) Other Comprehensive Loss $ (454) $ 331 $ (123) $ (20,743) $ (132) $ (20,875) |
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 income before reclassifications 681 — 180 861 Net amount reclassified from accumulated other comprehensive income (loss) — (1,291) 307 (984) Other comprehensive income (loss), net of tax 681 (1,291) 487 (123) Balance as of June 30, 2021 $ 10,435 $ 593,996 $ (1,240) $ 603,191 |
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 Six Months Ended Affected Line Item in the Condensed Consolidated Statements of Operations (in thousands) 2021 2020 2021 2020 Pension and Other Postretirement Plans: Amortization of net prior service cost $ 792 $ 668 $ 1,584 $ 1,339 (1) Amortization of net actuarial (gain) loss (924) 390 (3,353) 610 (1) (132) 1,058 (1,769) 1,949 Before tax 35 (285) 478 (526) Provision for (Benefit from) Income Taxes (97) 773 (1,291) 1,423 Net of Tax Cash Flow Hedges 153 118 307 147 Interest expense — 6 — 13 Provision for (Benefit from) Income Taxes 153 124 307 160 Net of Tax Total reclassification for the period $ 56 $ 897 $ (984) $ 1,583 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) | 6 Months Ended |
Jun. 30, 2021 | |
Segment Reporting Information [Line Items] | |
Schedule of Restructuring and Related Costs | Restructuring related costs across all businesses during the first six months of 2020 were recorded as follows: (in thousands) Kaplan International Higher Education Supplemental Education Kaplan Corporate Total Education Other Businesses Total Severance $ 1,224 $ — $ — $ — $ 1,224 $ — $ 1,224 Facility related costs: Operating lease cost 2,418 3,442 3,296 — 9,156 — 9,156 Accelerated depreciation of property, plant and equipment 1,472 95 1,801 — 3,368 — 3,368 Total Restructuring Costs Included in Segment Income (Loss) from Operations (1) $ 5,114 $ 3,537 $ 5,097 $ — $ 13,748 $ — $ 13,748 Impairment of other long-lived assets: Lease right-of-use assets 3,790 2,062 2,198 — 8,050 1,405 9,455 Property, plant and equipment 1,199 174 597 — 1,970 86 2,056 Non-operating pension and postretirement benefit income, net 1,100 1,431 2,295 189 5,015 999 6,014 Total Restructuring Related Costs $ 11,203 $ 7,204 $ 10,187 $ 189 $ 28,783 $ 2,490 $ 31,273 (1) These amounts are included in the segments’ Income (Loss) from Operations before Amortization of Intangible Assets and Impairment of Goodwill and Other Long-Lived Assets. |
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 Six months ended June 30 June 30 (in thousands) 2021 2020 2021 2020 Operating Revenues Education $ 339,984 $ 333,175 $ 669,301 $ 689,553 Television broadcasting 119,966 100,762 233,591 216,210 Manufacturing 141,123 83,239 257,083 196,697 Healthcare 54,696 49,181 104,739 95,175 Other businesses 145,899 86,863 249,938 188,145 Corporate office — — — — Intersegment elimination (516) (349) (1,045) (652) $ 801,152 $ 652,871 $ 1,513,607 $ 1,385,128 Income (Loss) from Operations before Amortization of Intangible Assets and Impairment of Goodwill and Other Long-Lived Assets Education $ 19,221 $ 26,545 $ 43,369 $ 35,438 Television broadcasting 36,964 24,988 71,301 62,124 Manufacturing 19,038 5,506 34,932 19,144 Healthcare 9,375 10,125 17,296 14,604 Other businesses (14,780) (22,429) (33,472) (39,352) Corporate office (14,570) (13,020) (29,350) (21,592) $ 55,248 $ 31,715 $ 104,076 $ 70,366 Amortization of Intangible Assets and Impairment of Goodwill and Other Long-Lived Assets Education $ 6,073 $ 14,291 $ 11,285 $ 18,492 Television broadcasting 1,361 1,361 2,720 2,721 Manufacturing 6,610 6,988 13,597 14,125 Healthcare 780 1,307 1,561 2,617 Other businesses 2,833 1,891 3,478 18,449 Corporate office — — — — $ 17,657 $ 25,838 $ 32,641 $ 56,404 Income (Loss) from Operations Education $ 13,148 $ 12,254 $ 32,084 $ 16,946 Television broadcasting 35,603 23,627 68,581 59,403 Manufacturing 12,428 (1,482) 21,335 5,019 Healthcare 8,595 8,818 15,735 11,987 Other businesses (17,613) (24,320) (36,950) (57,801) Corporate office (14,570) (13,020) (29,350) (21,592) $ 37,591 $ 5,877 $ 71,435 $ 13,962 Equity in Earnings (Losses) of Affiliates, Net 1,776 1,182 15,204 (365) Interest Expense, Net (5,477) (6,423) (13,035) (12,950) Non-Operating Pension and Postretirement Benefit Income, Net 25,216 12,136 54,003 30,539 Gain (Loss) on Marketable Equity Securities, Net 83,698 39,890 162,912 (60,503) Other Income, Net 16,122 8,100 22,442 10,788 Income (Loss) Before Income Taxes $ 158,926 $ 60,762 $ 312,961 $ (18,529) Depreciation of Property, Plant and Equipment Education $ 7,482 $ 10,324 $ 15,262 $ 17,653 Television broadcasting 3,543 3,446 7,016 6,789 Manufacturing 2,427 2,526 4,944 5,053 Healthcare 331 493 648 1,033 Other businesses 2,659 5,948 4,949 8,738 Corporate office 158 176 326 351 $ 16,600 $ 22,913 $ 33,145 $ 39,617 Pension Service Cost Education $ 2,398 $ 2,592 $ 4,681 $ 5,177 Television broadcasting 956 836 1,791 1,632 Manufacturing 246 395 641 789 Healthcare 108 112 280 271 Other businesses 487 403 856 866 Corporate office 1,682 1,466 3,230 2,852 $ 5,877 $ 5,804 $ 11,479 $ 11,587 Asset information for the Company’s business segments is as follows: As of (in thousands) June 30, 2021 December 31, 2020 Identifiable Assets Education $ 1,854,482 $ 1,975,104 Television broadcasting 446,499 453,988 Manufacturing 555,155 551,611 Healthcare 165,521 160,654 Other businesses 805,245 517,533 Corporate office 83,409 348,045 $ 3,910,311 $ 4,006,935 Investments in Marketable Equity Securities 751,440 573,102 Investments in Affiliates 164,203 155,777 Prepaid Pension Cost 1,750,588 1,708,305 Total Assets $ 6,576,542 $ 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 Six months ended June 30 June 30 (in thousands) 2021 2020 2021 2020 Operating Revenues Kaplan international $ 181,276 $ 164,713 $ 353,171 $ 364,328 Higher education 78,740 86,453 154,426 159,990 Supplemental education 77,911 79,785 157,566 161,073 Kaplan corporate and other 3,615 3,039 6,978 6,244 Intersegment elimination (1,558) (815) (2,840) (2,082) $ 339,984 $ 333,175 $ 669,301 $ 689,553 Income (Loss) From Operations before Amortization of Intangible Assets and Impairment of Long-Lived Assets Kaplan international $ 14,077 $ 16,035 $ 24,284 $ 35,015 Higher education 2,374 17,050 8,627 15,030 Supplemental education 8,813 330 21,310 (6,220) Kaplan corporate and other (6,042) (6,870) (10,949) (8,392) Intersegment elimination (1) — 97 5 $ 19,221 $ 26,545 $ 43,369 $ 35,438 Amortization of Intangible Assets $ 3,914 $ 4,271 $ 8,079 $ 8,472 Impairment of Long-Lived Assets $ 2,159 $ 10,020 $ 3,206 $ 10,020 Income (Loss) from Operations Kaplan international $ 14,077 $ 16,035 $ 24,284 $ 35,015 Higher education 2,374 17,050 8,627 15,030 Supplemental education 8,813 330 21,310 (6,220) Kaplan corporate and other (12,115) (21,161) (22,234) (26,884) Intersegment elimination (1) — 97 5 $ 13,148 $ 12,254 $ 32,084 $ 16,946 Depreciation of Property, Plant and Equipment Kaplan international $ 4,835 $ 5,619 $ 10,087 $ 10,197 Higher education 873 832 1,725 1,555 Supplemental education 1,670 3,772 3,246 5,711 Kaplan corporate and other 104 101 204 190 $ 7,482 $ 10,324 $ 15,262 $ 17,653 Pension Service Cost Kaplan international $ 77 $ 120 $ 148 $ 232 Higher education 1,137 1,070 2,220 2,140 Supplemental education 976 1,084 1,907 2,169 Kaplan corporate and other 208 318 406 636 $ 2,398 $ 2,592 $ 4,681 $ 5,177 Asset information for the Company’s education division is as follows: As of (in thousands) June 30, 2021 December 31, 2020 Identifiable Assets Kaplan international $ 1,346,838 $ 1,455,722 Higher education 181,508 187,123 Supplemental education 261,229 274,687 Kaplan corporate and other 64,907 57,572 $ 1,854,482 $ 1,975,104 |
Organization, Basis of Presen_3
Organization, Basis of Presentation and Recent Accounting Pronouncements (Organization and Basis of Presentation) (Narrative) (Details) | Jun. 30, 2021televisionStation |
Television Broadcasting [Member] | |
Number of television broadcast stations | 7 |
Acquisitions and Dispositions_3
Acquisitions and Dispositions of Businesses (Acquisitions) (Narrative) (Details) $ in Thousands | Jun. 14, 2021USD ($) | Mar. 31, 2020business | Jun. 30, 2021USD ($) | Jun. 30, 2020USD ($) | Dec. 31, 2020USD ($)business | May 31, 2020USD ($) |
Business Acquisition [Line Items] | ||||||
Number of businesses acquired | business | 3 | |||||
Acquisition purchase price | $ 96,800 | |||||
Purchase Price Net of Cash | $ 272,428 | $ 20,080 | ||||
Business Acquisition, Transaction Costs | 1,400 | $ 1,100 | ||||
Goodwill expected to be deductible for income tax purposes | 43,400 | $ 3,200 | ||||
Automotive [Member] | ||||||
Business Acquisition [Line Items] | ||||||
Floor plan payables | 16,400 | |||||
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% | |||||
Other Businesses [Member] | Leaf | ||||||
Business Acquisition [Line Items] | ||||||
Acquisition purchase price | $ 308,600 | |||||
Stock Compensation Liabilities Assumed | $ 9,200 | |||||
Pinnacle Bank Term Loan [Member] | ||||||
Business Acquisition [Line Items] | ||||||
Loans Payable to Bank | $ 10,242 | $ 10,692 |
Acquisitions and Dispositions_4
Acquisitions and Dispositions of Businesses (Dispositions and Other) (Narrative) (Details) - USD ($) $ in Thousands | 1 Months Ended | 3 Months Ended | 6 Months Ended | |||
Mar. 31, 2021 | Jun. 30, 2021 | Mar. 31, 2021 | Jun. 30, 2020 | Jun. 30, 2021 | Jun. 30, 2020 | |
Income Statement, Balance Sheet and Additional Disclosures by Disposal Groups, Including Discontinued Operations [Line Items] | ||||||
Change in redemption value of redeemable noncontrolling interest | $ 65 | $ 761 | ||||
Purchase of redeemable noncontrolling interest | $ 0 | |||||
Education [Member] | Higher Education [Member] | Kaplan University Transaction [Member] | ||||||
Income Statement, Balance Sheet and Additional Disclosures by Disposal Groups, Including Discontinued Operations [Line Items] | ||||||
Gain related to contingent consideration | $ 600 | $ 1,700 | $ 1,500 | $ 1,800 | ||
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 | Jun. 30, 2021 | Dec. 31, 2020 |
Business Acquisition [Line Items] | ||
Goodwill | $ 1,653,607 | $ 1,484,750 |
Series of Individually Immaterial Business Acquisitions [Member] | ||
Business Acquisition [Line Items] | ||
Accounts receivable | 16,080 | 745 |
Inventory | 777 | 3,496 |
Property, plant and equipment | 6,229 | 3,346 |
Lease right-of-use assets | 7,744 | 6,580 |
Goodwill | 167,098 | 73,951 |
Amortized intangible assets | 88,000 | 14,589 |
Other assets | 4,507 | 975 |
Deferred income tax asset | 40,850 | 15,958 |
Other liabilities | (49,797) | (14,917) |
Current and noncurrent lease liabilities | (7,742) | (6,593) |
Redeemable noncontrolling interest | 0 | (6,005) |
Aggregate purchase price, net of cash acquired | $ 273,746 | $ 92,125 |
Acquisitions and Dispositions_6
Acquisitions and Dispositions of Businesses (Pro Forma Financials) (Details 2) - USD ($) $ in Thousands | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2021 | Jun. 30, 2020 | Jun. 30, 2021 | Jun. 30, 2020 | |
Business Acquisition [Line Items] | ||||
Document Fiscal Year Focus | 2021 | |||
Pro forma Operating revenues | $ 841,966 | $ 704,738 | $ 1,606,299 | $ 1,475,834 |
Pro forma Net income (loss) | $ 111,086 | $ 13,129 | $ 217,821 | $ (36,427) |
Investments (Narrative) (Detail
Investments (Narrative) (Details) £ in Millions | 3 Months Ended | 6 Months Ended | |||||
Jun. 30, 2021USD ($)investmentshares | Jun. 30, 2020USD ($) | Mar. 31, 2020USD ($)investment | Jun. 30, 2021USD ($)investmentshares | Jun. 30, 2020USD ($) | Jun. 30, 2021GBP (£)investmentshares | Dec. 31, 2020USD ($)shares | |
Schedule of Investments [Line Items] | |||||||
Money Market Investments | $ 0 | $ 0 | $ 268,800,000 | ||||
Marketable equity securities | 751,440,000 | 751,440,000 | 573,102,000 | ||||
Payments to Acquire Marketable Securities | 48,036,000 | $ 0 | |||||
Cumulative realized gain on marketable securities | 27,700,000 | 23,000,000 | |||||
Proceeds from sales of marketable equity securities | 37,629,000 | 93,775,000 | |||||
Cumulative undistributed income in investments in affiliates | 41,600,000 | 41,600,000 | 26,100,000 | ||||
Equity Method Investment Impairment | $ 3,600,000 | ||||||
Number of Equity Method Investments Impaired | investment | 2 | ||||||
Cost method investments | 45,100,000 | 45,100,000 | $ 35,700,000 | ||||
Gain on cost method investments | 7,783,000 | $ 2,571,000 | 10,506,000 | 2,571,000 | |||
Impairment of cost method investments | $ 0 | 0 | $ 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 | 0 | ||||
Equity Securities [Member] | Concentration in single marketable equity security [Member] | Assets, Total [Member] | |||||||
Schedule of Investments [Line Items] | |||||||
Minimum percentage of total assets considered as significant concentrations | 5.00% | ||||||
Markel Corporation [Member] | |||||||
Schedule of Investments [Line Items] | |||||||
Number of Shares Held in Investment | shares | 44,430 | 44,430 | 44,430 | 28,000 | |||
Marketable equity securities | $ 52,700,000 | $ 52,700,000 | $ 28,900,000 | ||||
Intersection Holdings [Member] | |||||||
Schedule of Investments [Line Items] | |||||||
Equity Method Investment, Ownership Percentage | 12.00% | 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 | $ 2,700,000 | $ 2,200,000 | $ 5,200,000 | $ 4,700,000 | |||
Graham Healthcare Group [Member] | Residential Home Health Illinois [Member] | |||||||
Schedule of Investments [Line Items] | |||||||
Equity Method Investment, Ownership Percentage | 40.00% | 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% | 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% | 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% | 40.00% | ||||
KIHL [Member] | York Joint Venture [Member] | |||||||
Schedule of Investments [Line Items] | |||||||
Equity Method Investment, Ownership Percentage | 45.00% | 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 | Jun. 30, 2021 | Dec. 31, 2020 |
Investments [Abstract] | ||
Total Cost | $ 276,532 | $ 232,847 |
Gross unrealized gains | 474,908 | 340,255 |
Total Fair Value | $ 751,440 | $ 573,102 |
Investments (Gain (Loss) on Mar
Investments (Gain (Loss) on Marketable Equity Securities) (Details 2) - USD ($) $ in Thousands | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2021 | Jun. 30, 2020 | Jun. 30, 2021 | Jun. 30, 2020 | |
Investments [Abstract] | ||||
Gain (loss) on marketable equity securities, net | $ 83,698 | $ 39,890 | $ 162,912 | $ (60,503) |
Less: Net (gains) losses in earnings from marketable equity securities sold and donated | (8,161) | 4,608 | (8,161) | 13,382 |
Net unrealized gains (losses) in earnings from marketable equity securities still held at the end of the period | $ 75,537 | $ 44,498 | $ 154,751 | $ (47,121) |
Accounts Receivable, Accounts_3
Accounts Receivable, Accounts Payable and Accrued Liabilities (Narrative) (Details) - USD ($) $ in Thousands | 3 Months Ended | 6 Months Ended | |||
Jun. 30, 2021 | Jun. 30, 2020 | Jun. 30, 2021 | Jun. 30, 2020 | Dec. 31, 2020 | |
Accounts Receivable Accounts Payable And Accrued Liabilities [Abstract] | |||||
Credit loss expense | $ 1,400 | $ 4,800 | $ 2,506 | $ 7,241 | |
Cash overdrafts | $ 6,600 | $ 6,600 | $ 2,100 |
Accounts Receivable, Accounts_4
Accounts Receivable, Accounts Payable and Accrued Liabilities (Details 1) - USD ($) $ in Thousands | Jun. 30, 2021 | Dec. 31, 2020 |
Accounts and Financing Receivable, after Allowance for Credit Loss [Abstract] | ||
Receivable from contracts with customers, less estimated credit losses | $ 496,676 | $ 519,577 |
Other receivables | 19,807 | 17,579 |
Accounts receivable, net | 516,483 | 537,156 |
Estimated credit losses | 20,445 | 21,494 |
Accounts Payable and Accrued Liabilities, Current [Abstract] | ||
Accounts payable | 116,607 | 106,215 |
Accrued compensation and related benefits | 139,125 | 135,493 |
Other accrued liabilities | 256,677 | 278,528 |
Total Accounts payable and Accrued liabilities | $ 512,409 | $ 520,236 |
Inventories, Contracts in Pro_3
Inventories, Contracts in Progress and Vehicle Floor Plan Payable (Details) - USD ($) $ in Thousands | Jun. 30, 2021 | Dec. 31, 2020 |
Inventory, Net of Allowances, Customer Advances and Progress Billings [Abstract] | ||
Raw materials | $ 47,633 | $ 45,382 |
Work-in-process | 15,675 | 10,402 |
Finished goods | 62,825 | 64,061 |
Contracts in progress | 262 | 777 |
Inventories and contracts in progress | $ 126,395 | $ 120,622 |
Inventories, Contracts in Pro_4
Inventories, Contracts in Progress and Vehicle Floor Plan Payable (Narrative) (Details) - USD ($) | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2021 | Jun. 30, 2020 | Jun. 30, 2021 | Jun. 30, 2020 | |
Inventory [Line Items] | ||||
Weighted average interest rate | 4.90% | 5.10% | 5.00% | 5.10% |
Automotive [Member] | ||||
Inventory [Line Items] | ||||
Borrowing capacity | $ 50,000,000 | $ 50,000,000 | ||
Vehicle floor plan payable | 16,400,000 | 16,400,000 | ||
Floor plan assistance | $ 800,000 | $ 500,000 | $ 1,400,000 | $ 900,000 |
Automotive [Member] | Vehicle Floor Plan Facility [Member] | ||||
Inventory [Line Items] | ||||
Weighted average interest rate | 1.20% | 1.60% | 1.20% | 2.20% |
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) - USD ($) $ in Thousands | 3 Months Ended | 6 Months Ended | |||
Jun. 30, 2021 | Jun. 30, 2020 | Mar. 31, 2020 | Jun. 30, 2021 | Jun. 30, 2020 | |
Goodwill [Line Items] | |||||
Impairment of goodwill and other intangible assets | $ 16,400 | ||||
Impairment of goodwill and other long-lived assets | $ 3,768 | $ 11,511 | $ 4,815 | $ 27,912 | |
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 | 6 Months Ended | ||
Jun. 30, 2021 | Jun. 30, 2020 | Jun. 30, 2021 | Jun. 30, 2020 | |
Amortized Intangible Assets [Line Items] | ||||
Goodwill and intangible asset impairment charge | $ 3,768 | $ 11,511 | $ 4,815 | $ 27,912 |
Amortization of Intangible Assets | ||||
Amortization of intangible assets | 13,889 | $ 14,327 | 27,826 | $ 28,492 |
Estimated amortization of intangible assets, remainder of 2021 | 32,000 | 32,000 | ||
Estimated amortization of intangible assets, 2022 | 60,000 | 60,000 | ||
Estimated amortization of intangible assets, 2023 | 51,000 | 51,000 | ||
Estimated amortization of intangible assets, 2024 | 40,000 | 40,000 | ||
Estimated amortization of intangible assets, 2025 | 33,000 | 33,000 | ||
Estimated amortization of intangible assets, after 2025 | $ 48,000 | $ 48,000 |
Goodwill and Other Intangible_5
Goodwill and Other Intangible Assets (Changes in Carrying Amount of Goodwill) (Details 1) $ in Thousands | 6 Months Ended |
Jun. 30, 2021USD ($) | |
Goodwill [Roll Forward] | |
Goodwill, beginning balance | $ 1,838,080 |
Accumulated impairment losses, beginning balance | (353,330) |
Goodwill, net, beginning balance | 1,484,750 |
Acquisitions | 167,098 |
Foreign currency exchange rate changes | 1,759 |
Goodwill, ending balance | 2,006,937 |
Accumulated impairment losses, ending balance | (353,330) |
Goodwill, net, ending balance | 1,653,607 |
Education [Member] | |
Goodwill [Roll Forward] | |
Goodwill, beginning balance | 1,183,379 |
Accumulated impairment losses, beginning balance | (331,151) |
Goodwill, net, beginning balance | 852,228 |
Acquisitions | 0 |
Foreign currency exchange rate changes | 1,759 |
Goodwill, ending balance | 1,185,138 |
Accumulated impairment losses, ending balance | (331,151) |
Goodwill, net, ending balance | 853,987 |
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 | 1,696 |
Goodwill, ending balance | 636,445 |
Accumulated impairment losses, ending balance | 0 |
Goodwill, net, ending balance | 636,445 |
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 | 63 |
Goodwill, ending balance | 374,129 |
Accumulated impairment losses, ending balance | (219,827) |
Goodwill, net, ending balance | 154,302 |
Television Broadcasting [Member] | |
Goodwill [Roll Forward] | |
Goodwill, beginning balance | 190,815 |
Accumulated impairment losses, beginning balance | 0 |
Goodwill, net, beginning balance | 190,815 |
Acquisitions | 0 |
Foreign currency exchange rate changes | 0 |
Goodwill, ending balance | 190,815 |
Accumulated impairment losses, ending balance | 0 |
Goodwill, net, ending balance | 190,815 |
Manufacturing [Member] | |
Goodwill [Roll Forward] | |
Goodwill, beginning balance | 234,993 |
Accumulated impairment losses, beginning balance | (7,616) |
Goodwill, net, beginning balance | 227,377 |
Acquisitions | 0 |
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 |
Acquisitions | 0 |
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 |
Acquisitions | 167,098 |
Foreign currency exchange rate changes | 0 |
Goodwill, ending balance | 297,570 |
Accumulated impairment losses, ending balance | (14,563) |
Goodwill, net, ending balance | $ 283,007 |
Goodwill and Other Intangible_6
Goodwill and Other Intangible Assets (Other Intangible Assets) (Details 2) - USD ($) $ in Thousands | 6 Months Ended | 12 Months Ended |
Jun. 30, 2021 | Dec. 31, 2020 | |
Amortized Intangible Assets [Line Items] | ||
Gross Carrying Amount | $ 569,459 | $ 481,950 |
Accumulated Amortization | 305,051 | 277,304 |
Net Carrying Amount | 264,408 | 204,646 |
Indefinite-Lived Intangible Assets [Line Items] | ||
Indefinite-Lived Intangible Assets | 121,417 | 120,437 |
Trade Names and Trademarks [Member] | ||
Indefinite-Lived Intangible Assets [Line Items] | ||
Indefinite-Lived Intangible Assets | 88,409 | 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 | 323,848 | 294,077 |
Accumulated Amortization | 193,680 | 178,075 |
Net Carrying Amount | $ 130,168 | $ 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 | $ 160,650 | $ 109,809 |
Accumulated Amortization | 60,987 | 54,766 |
Net Carrying Amount | $ 99,663 | $ 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 | 7,757 | 6,888 |
Net Carrying Amount | 9,643 | 10,512 |
Databases and Technology [Member] | ||
Amortized Intangible Assets [Line Items] | ||
Gross Carrying Amount | 36,761 | 34,864 |
Accumulated Amortization | 23,148 | 19,924 |
Net Carrying Amount | $ 13,613 | $ 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 | 989 | 937 |
Net Carrying Amount | $ 11 | $ 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 | $ 29,800 | $ 24,800 |
Accumulated Amortization | 18,490 | 16,714 |
Net Carrying Amount | $ 11,310 | $ 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 | Jun. 30, 2021USD ($) | Jun. 30, 2021USD ($) | Jun. 30, 2020USD ($) | Jun. 30, 2021USD ($) | Jun. 30, 2020USD ($) | Jun. 30, 2021GBP (£) | Dec. 31, 2020USD ($) | |
Debt Instrument [Line Items] | ||||||||
Average borrowings outstanding | $ 525,500 | $ 510,500 | $ 520,000 | $ 511,200 | ||||
Weighted average interest rate | 4.90% | 5.10% | 5.00% | 5.10% | ||||
Interest Expense, Net | $ (5,477) | $ (6,423) | $ (13,035) | $ (12,950) | ||||
Interest income | 1,876 | 954 | 2,766 | 2,105 | ||||
Interest expense | 7,353 | $ 7,377 | 15,801 | $ 15,055 | ||||
5.75% Unsecured Notes due June 1, 2026 [Member] | ||||||||
Debt Instrument [Line Items] | ||||||||
Unamortized debt issuance costs | $ 3,500 | $ 3,500 | $ 3,500 | $ 3,900 | ||||
Interest rate | 5.75% | 5.75% | 5.75% | 5.75% | 5.75% | |||
Fair value of debt instrument | $ 418,400 | $ 418,400 | $ 418,400 | $ 421,700 | ||||
Carrying value of debt instrument | [1] | 396,468 | 396,468 | 396,468 | 396,112 | |||
Five-Year Credit Agreement dated May 30, 2018 [Member] | ||||||||
Debt Instrument [Line Items] | ||||||||
Line of credit facility outstanding | 76,181 | 76,181 | 76,181 | £ 55,000,000 | 74,686 | |||
Commercial note with Truist Bank [Member] | ||||||||
Debt Instrument [Line Items] | ||||||||
Notes Payable to Bank | 23,750 | 23,750 | 23,750 | 25,250 | ||||
Pinnacle Bank Term Loan [Member] | ||||||||
Debt Instrument [Line Items] | ||||||||
Loans Payable to Bank | 10,242 | 10,242 | 10,242 | 10,692 | ||||
Pinnacle Bank Line Of Credit [Member] | ||||||||
Debt Instrument [Line Items] | ||||||||
Line of credit facility outstanding | $ 0 | $ 0 | $ 0 | $ 2,295 | ||||
Minimum [Member] | Other Indebtedness [Member] | ||||||||
Debt Instrument [Line Items] | ||||||||
Interest rate | 0.00% | 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% | 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, Net | $ 100 | |||||||
Interest income | $ 1,000 | |||||||
[1] | The carrying value is net of $3.5 million and $3.9 million of unamortized debt issuance costs as of June 30, 2021 and December 31, 2020, respectively . |
Debt (Details 1)
Debt (Details 1) $ in Thousands | Jun. 30, 2021USD ($) | Jun. 30, 2021GBP (£) | Dec. 31, 2020USD ($) | |
Debt Instrument [Line Items] | ||||
Other indebtedness | $ 3,686 | $ 3,520 | ||
Total Debt | 510,327 | 512,555 | ||
Less: current portion | (4,248) | (6,452) | ||
Total Long-Term Debt | 506,079 | 506,103 | ||
5.75% Unsecured Notes due June 1, 2026 [Member] | ||||
Debt Instrument [Line Items] | ||||
Unsecured notes | [1] | 396,468 | 396,112 | |
Unamortized debt issuance costs | $ 3,500 | $ 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 | $ 76,181 | £ 55,000,000 | $ 74,686 | |
Commercial note with Truist Bank [Member] | ||||
Debt Instrument [Line Items] | ||||
Commercial note | 23,750 | 25,250 | ||
Pinnacle Bank Term Loan [Member] | ||||
Debt Instrument [Line Items] | ||||
Loans Payable to Bank | 10,242 | 10,692 | ||
Pinnacle Bank Line Of Credit [Member] | ||||
Debt Instrument [Line Items] | ||||
Credit facility | $ 0 | $ 2,295 | ||
[1] | The carrying value is net of $3.5 million and $3.9 million of unamortized debt issuance costs as of June 30, 2021 and December 31, 2020, respectively . |
Fair Value Measurements (Narrat
Fair Value Measurements (Narrative) (Details) $ in Thousands | 3 Months Ended | 6 Months Ended | |||
Jun. 30, 2021USD ($) | Jun. 30, 2020USD ($) | Mar. 31, 2020USD ($)investment | Jun. 30, 2021USD ($) | Jun. 30, 2020USD ($) | |
Fair Value Measurements [Abstract] | |||||
Impairment of other long-lived assets | $ 3,800 | $ 11,500 | $ 4,800 | $ 11,500 | |
Impairment of goodwill and other intangible assets | $ 16,400 | ||||
Gain on cost method investments | 7,783 | 2,571 | 10,506 | 2,571 | |
Impairment of cost method investments | $ 0 | $ 0 | $ 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 ($) | Jun. 30, 2021 | Dec. 31, 2020 | |
Assets | |||
Money Market Investments | $ 0 | $ 268,800,000 | |
Marketable equity securities | 751,440,000 | 573,102,000 | |
Fair Value, Recurring [Member] | |||
Assets | |||
Money Market Investments | [1] | 268,841,000 | |
Marketable equity securities | [2] | 751,440,000 | 573,102,000 |
Other current investments | [3] | 14,300,000 | 14,480,000 |
Total Financial Assets | 765,740,000 | 856,423,000 | |
Liabilities | |||
Deferred compensation plan liabilities | [4] | 30,033,000 | 31,178,000 |
Contingent consideration liabilities | [5] | 14,693,000 | 37,174,000 |
Interest rate swap | [6] | 1,704,000 | 2,342,000 |
Mandatorily redeemable noncontrolling interest | [7] | 9,332,000 | 9,240,000 |
Foreign exchange swap | [8] | 259,000 | |
Total Financial Liabilities | 55,762,000 | 80,193,000 | |
Level 1 | Fair Value, Recurring [Member] | |||
Assets | |||
Money Market Investments | [1] | 0 | |
Marketable equity securities | [2] | 751,440,000 | 573,102,000 |
Other current investments | [3] | 7,212,000 | 10,397,000 |
Total Financial Assets | 758,652,000 | 583,499,000 | |
Liabilities | |||
Deferred compensation plan liabilities | [4] | 0 | 0 |
Contingent consideration liabilities | [5] | 0 | 0 |
Interest rate swap | [6] | 0 | 0 |
Mandatorily redeemable noncontrolling interest | [7] | 0 | 0 |
Foreign exchange swap | [8] | 0 | |
Total Financial Liabilities | 0 | 0 | |
Level 2 | Fair Value, Recurring [Member] | |||
Assets | |||
Money Market Investments | [1] | 268,841,000 | |
Marketable equity securities | [2] | 0 | 0 |
Other current investments | [3] | 7,088,000 | 4,083,000 |
Total Financial Assets | 7,088,000 | 272,924,000 | |
Liabilities | |||
Deferred compensation plan liabilities | [4] | 30,033,000 | 31,178,000 |
Contingent consideration liabilities | [5] | 0 | 0 |
Interest rate swap | [6] | 1,704,000 | 2,342,000 |
Mandatorily redeemable noncontrolling interest | [7] | 0 | 0 |
Foreign exchange swap | [8] | 259,000 | |
Total Financial Liabilities | 31,737,000 | 33,779,000 | |
Level 3 | Fair Value, Recurring [Member] | |||
Assets | |||
Money Market Investments | [1] | 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] | 14,693,000 | 37,174,000 |
Interest rate swap | [6] | 0 | 0 |
Mandatorily redeemable noncontrolling interest | [7] | 9,332,000 | 9,240,000 |
Foreign exchange swap | [8] | 0 | |
Total Financial Liabilities | $ 24,025,000 | $ 46,414,000 | |
[1] | The Company’s money market investments are included in cash and cash equivalents and the value considers the liquidity of the counterparty. | ||
[2] | The Company’s investments in marketable equity securities are held in common shares of U.S. 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 either a Monte Carlo simulation or probability-weighted analysis depending on the type of target included in the contingent consideration requirements (revenue, EBITDA, client retention). All analyses included estimated financial projections for the acquired businesses and acquisition-specific discount rates. | ||
[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 using enterprise value analyses which include an equal weighing between guideline public company and discounted cash flow analyses. | ||
[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 Measurements (Reconc
Fair Value Measurements (Reconciliation of Changes in Financial Liabilities Fair Value Using Level 3 Inputs) (Details 2) - Level 3 $ in Thousands | 6 Months Ended | |
Jun. 30, 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 | (3,720) | [1] |
Capital contributions | 0 | |
Accretion of value included in net income | 1,041 | [1] |
Settlements or distributions | (19,836) | |
Foreign currency exchange rate changes | 34 | |
Fair Value, Measurement with Unobservable Inputs Reconciliation, Recurring Basis, Liability Value, Ending Balance | 14,693 | |
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 | 96 | [1] |
Capital contributions | 37 | |
Accretion of value included in net income | 0 | [1] |
Settlements or distributions | (41) | |
Foreign currency exchange rate changes | 0 | |
Fair Value, Measurement with Unobservable Inputs Reconciliation, Recurring Basis, Liability Value, Ending Balance | $ 9,332 | |
[1] | Changes in fair value and accretion of value of contingent consideration liabilities are included in Selling, general and administrative expenses and the changes in fair value of mandatorily redeemable noncontrolling interest is included in Interest income and Interest expense in the Company’s Condensed Consolidated Statements of Operations. |
Income Taxes (Narrative) (Detai
Income Taxes (Narrative) (Details) - USD ($) $ in Thousands | 3 Months Ended | 6 Months Ended | |||
Jun. 30, 2020 | Mar. 31, 2020 | Jun. 30, 2021 | Jun. 30, 2020 | Dec. 31, 2020 | |
Income Taxes [Line Items] | |||||
Income Taxes Receivable | $ 16,947 | $ 29,313 | |||
Accounts payable and accrued liabilities | $ 512,409 | $ 520,236 | |||
Effective Income Tax Rate | 69.00% | 57.30% | 27.00% | 18.90% | |
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 | 6 Months Ended | |||
Apr. 30, 2020 | Jun. 30, 2021 | Jun. 30, 2020 | Jun. 30, 2021 | Jun. 30, 2020 | Dec. 31, 2020 | |
Disaggregation of Revenue [Line Items] | ||||||
Deferred revenue recognized in period related to beginning balance | $ 226.4 | |||||
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 | $ 7.4 | ||||
Deferred revenue recognized | $ 5 | $ 5 | ||||
CARES Act relief from COVID-19 [Member] | Provider Relief Fund [Member] | Graham Healthcare Group [Member] | ||||||
Disaggregation of Revenue [Line Items] | ||||||
Amount of Revenue Recognized From Provider Relief Fund | $ 5.5 | $ 5.5 | ||||
Transferred over Time [Member] | ||||||
Disaggregation of Revenue [Line Items] | ||||||
Percentage of Revenue | 66.00% | 76.00% | 68.00% | 74.00% | ||
Transferred at Point in Time [Member] | ||||||
Disaggregation of Revenue [Line Items] | ||||||
Percentage of Revenue | 34.00% | 24.00% | 32.00% | 26.00% | ||
U.S. [Member] | ||||||
Disaggregation of Revenue [Line Items] | ||||||
Percentage of Revenue | 78.00% | 75.00% | 77.00% | 75.00% | ||
Non-US [Member] | ||||||
Disaggregation of Revenue [Line Items] | ||||||
Percentage of Revenue | 22.00% | 25.00% | 23.00% | 25.00% | ||
Kaplan International [Member] | ||||||
Disaggregation of Revenue [Line Items] | ||||||
Contract with Customer, Asset, Net, Noncurrent | $ 11 | $ 11 | $ 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 | 72.00% | 72.00% |
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]: 2021-07-01 $ in Millions | Jun. 30, 2021USD ($) |
Kaplan International [Member] | |
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction [Line Items] | |
Revenue, Remaining Performance Obligation, Amount | $ 7 |
Supplemental Education [Member] | |
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction [Line Items] | |
Revenue, Remaining Performance Obligation, Amount | $ 8 |
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 | 6 Months Ended | |
Jun. 30, 2021 | Dec. 31, 2020 | |
Revenue from Contract with Customer [Abstract] | ||
Deferred Revenue | $ 287,706 | $ 343,322 |
Deferred Revenue, Period Decrease Percentage | (16.00%) |
Revenue from Contracts with C_6
Revenue from Contracts with Customers (Capitalized Contract Cost) (Details) - USD ($) $ in Thousands | 6 Months Ended | |
Jun. 30, 2021 | Dec. 31, 2020 | |
Revenue from Contract with Customer [Abstract] | ||
Contract costs capitalized during the period | $ 16,692 | |
Costs amortized during the period | (27,192) | |
Change in capitalized contract cost, other | 104 | |
Balance of costs to obtain a contract | $ 13,967 | $ 24,363 |
Earnings (Loss) Per Share (Narr
Earnings (Loss) Per Share (Narrative) (Details) - $ / shares | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2021 | Jun. 30, 2020 | Jun. 30, 2021 | Jun. 30, 2020 | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||
Dividends declared per common share | $ 1.51 | $ 1.45 | $ 4.53 | $ 4.35 |
Stock Option Plan [Member] | ||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||
Antidilutive securities, shares | 104,000 | 104,000 | 104,000 | 104,000 |
Earnings (Loss) Per Share (Deta
Earnings (Loss) Per Share (Details 1) - USD ($) $ / shares in Units, shares in Thousands, $ in Thousands | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2021 | Jun. 30, 2020 | Jun. 30, 2021 | Jun. 30, 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 | $ 115,358 | $ 18,854 | $ 227,808 | $ (14,391) |
Less: Dividends paid-common stock outstanding and unvested restricted shares | (7,553) | (7,581) | (22,659) | (22,870) |
Undistributed earnings (loss) | $ 107,805 | $ 11,273 | $ 205,149 | $ (37,261) |
Percent allocated to common stockholders | 99.34% | 99.44% | 99.34% | 100.00% |
Undistributed Earnings Allocated To Common Stockholders | $ 107,089 | $ 11,210 | $ 203,786 | $ (37,261) |
Add: Dividends paid-common stock outstanding | 7,503 | 7,539 | 22,508 | 22,745 |
Numerator for basic earnings (loss) per share | 114,592 | 18,749 | 226,294 | (14,516) |
Add: Additional undistributed earnings due to dilutive stock options | 2 | 0 | 4 | 0 |
Numerator for diluted earnings (loss) per share | $ 114,594 | $ 18,749 | $ 226,298 | $ (14,516) |
Weighted average shares outstanding (shares) | 4,968 | 5,196 | 4,968 | 5,235 |
Denominator for diluted earnings (loss) per share (shares) | 4,985 | 5,201 | 4,981 | 5,235 |
Graham Holdings Company Common Stockholders: | ||||
Basic income (loss) per common share (in usd per share) | $ 23.07 | $ 3.61 | $ 45.55 | $ (2.77) |
Diluted income (loss) per common share (in usd per share) | $ 22.99 | $ 3.60 | $ 45.43 | $ (2.77) |
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) | 17 | 5 | 13 | 0 |
Earnings (Loss) Per Share (De_2
Earnings (Loss) Per Share (Details 2) - shares shares in Thousands | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2021 | Jun. 30, 2020 | Jun. 30, 2021 | Jun. 30, 2020 | |
Restricted Stock [Member] | ||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||
Antidilutive securities, shares | 13 | 10 | 10 | 10 |
Stock Option Plan [Member] | ||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||
Antidilutive securities, shares | 0 | 0 | 0 | 17 |
Pension and Postretirement Pl_3
Pension and Postretirement Plans (Narrative) (Details) $ in Thousands | 3 Months Ended | 6 Months Ended | ||||
Jun. 30, 2021USD ($)countryinvestment | Mar. 31, 2021 | Jun. 30, 2020USD ($) | Jun. 30, 2021USD ($)countryinvestment | Jun. 30, 2020USD ($) | Dec. 31, 2020USD ($)investment | |
Defined Benefit Plan Disclosure [Line Items] | ||||||
Special separation benefit expense | $ 6,014 | |||||
Defined Benefit Pension Plan [Member] | ||||||
Defined Benefit Plan Disclosure [Line Items] | ||||||
Special separation benefit expense | $ 1,118 | $ 6,014 | $ 1,118 | $ 6,014 | ||
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 | 2 | ||||
Percentage of total plan assets | 100.00% | 100.00% | 100.00% | |||
Berkshire Hathaway Common Stock [Member] | Defined Benefit Pension Plan [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] | Defined Benefit Pension Plan [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] | Defined Benefit Pension Plan [Member] | Maximum [Member] | Investment Manager 1 [Member] | ||||||
Defined Benefit Plan Disclosure [Line Items] | ||||||
Defined benefit plan, target allocation percentage of assets | 30.00% | 30.00% | ||||
Foreign Investments [Member] | Defined Benefit Pension Plan [Member] | Maximum [Member] | Investment Manager 2 [Member] | ||||||
Defined Benefit Plan Disclosure [Line Items] | ||||||
Defined benefit plan, target allocation percentage of assets | 15.00% | 15.00% | ||||
Fixed income securities [Member] | Defined Benefit Pension Plan [Member] | Minimum [Member] | Investment Manager 2 [Member] | ||||||
Defined Benefit Plan Disclosure [Line Items] | ||||||
Defined benefit plan, target allocation percentage of assets | 10.00% | 10.00% | ||||
Private investment fund [Member] | Defined Benefit Pension Plan [Member] | ||||||
Defined Benefit Plan Disclosure [Line Items] | ||||||
Percentage of total plan assets | 18.00% | 18.00% | 18.00% | |||
Single Equity Concentration [Member] | Defined Benefit Pension Plan [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 | $ 976,900 | $ 976,900 | $ 850,600 | |||
Percentage of total plan assets | 31.00% | 31.00% | 30.00% | |||
Single Equity Concentration [Member] | Equity Securities [Member] | Defined Benefit Pension Plan [Member] | ||||||
Defined Benefit Plan Disclosure [Line Items] | ||||||
Number of investments the company's pension plan held which individually exceed 10% of total plan assets | investment | 1 | 1 | 1 | |||
Single Equity Concentration [Member] | Private investment fund [Member] | Defined Benefit Pension Plan [Member] | ||||||
Defined Benefit Plan Disclosure [Line Items] | ||||||
Number of investments the company's pension plan held which individually exceed 10% of total plan assets | investment | 1 | 1 | 1 | |||
Concentration In Single Entity, Type Of Industry, Foreign Country Or Individual Fund [Member] | Defined Benefit Plan Assets Total [Member] | Defined Benefit Pension Plan [Member] | ||||||
Defined Benefit Plan Disclosure [Line Items] | ||||||
Minimum percentage of plan assets considered as significant concentrations in pension plans | 10.00% | |||||
Education, Code3 and Decile [Member] | Defined Benefit Pension Plan [Member] | Separation Incentive Program [Member] | ||||||
Defined Benefit Plan Disclosure [Line Items] | ||||||
Special separation benefit expense | $ 6,000 | |||||
Dekko [Member] | Defined Benefit Pension Plan [Member] | Separation Incentive Program [Member] | ||||||
Defined Benefit Plan Disclosure [Line Items] | ||||||
Special separation benefit expense | $ 1,100 |
Pension and Postretirement Pl_4
Pension and Postretirement Plans (Total Benefit/Cost) (Details 1) - USD ($) $ in Thousands | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2021 | Jun. 30, 2020 | Jun. 30, 2021 | Jun. 30, 2020 | |
Defined Benefit Plan Disclosure [Line Items] | ||||
Service cost | $ 5,877 | $ 5,804 | $ 11,479 | $ 11,587 |
Special separation benefit expense | 6,014 | |||
Net Periodic Cost (Benefit) | (45,413) | (21,409) | ||
Defined Benefit Pension Plan [Member] | ||||
Defined Benefit Plan Disclosure [Line Items] | ||||
Service cost | 5,877 | 5,804 | 11,479 | 11,587 |
Interest cost | 6,754 | 8,140 | 13,408 | 16,309 |
Expected return on assets | (33,702) | (28,290) | (68,278) | (56,734) |
Amortization of prior service cost (credit) | 712 | 707 | 1,423 | 1,415 |
Recognized actuarial loss (gain) | (1,671) | 0 | (4,563) | 0 |
Net Periodic Cost (Benefit) | (22,030) | (13,639) | (46,531) | (27,423) |
Special separation benefit expense | 1,118 | 6,014 | 1,118 | 6,014 |
Net Periodic Cost (Benefit) | (20,912) | (7,625) | (45,413) | (21,409) |
Supplemental Executive Retirement Plan (SERP) [Member] | ||||
Defined Benefit Plan Disclosure [Line Items] | ||||
Service cost | 256 | 239 | 511 | 477 |
Interest cost | 735 | 920 | 1,471 | 1,839 |
Amortization of prior service cost (credit) | 82 | 82 | 165 | 165 |
Recognized actuarial loss (gain) | 1,483 | 1,317 | 2,965 | 2,634 |
Net Periodic Cost (Benefit) | 2,556 | 2,558 | 5,112 | 5,115 |
Other Postretirement Plans [Member] | ||||
Defined Benefit Plan Disclosure [Line Items] | ||||
Interest cost | 10 | 22 | 46 | 84 |
Amortization of prior service cost (credit) | (2) | (121) | (4) | (241) |
Recognized actuarial loss (gain) | (736) | (927) | (1,755) | (2,024) |
Net Periodic Cost (Benefit) | $ (728) | $ (1,026) | $ (1,713) | $ (2,181) |
Pension and Postretirement Pl_5
Pension and Postretirement Plans (Asset Allocation) (Details 2) - Defined Benefit Pension Plans [Member] | Jun. 30, 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) | 60.00% | 58.00% |
Private investment fund [Member] | ||
Defined Benefit Plan Disclosure [Line Items] | ||
Defined Benefit Plan Assets Allocation (Percent) | 18.00% | 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) | 7.00% | 8.00% |
U.S. fixed income [Member] | ||
Defined Benefit Plan Disclosure [Line Items] | ||
Defined Benefit Plan Assets Allocation (Percent) | 6.00% | 7.00% |
Other Non-Operating Income (Nar
Other Non-Operating Income (Narrative) (Details) - USD ($) $ in Thousands | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2021 | Jun. 30, 2020 | Jun. 30, 2021 | Jun. 30, 2020 | |
Schedule of Non-Operating Income (Expense) [Line Items] | ||||
Gain on acquiring a controlling interest in an equity affiliate | $ 0 | $ 3,708 | $ 0 | $ 3,708 |
Gain on cost method investments | 7,783 | 2,571 | 10,506 | 2,571 |
Gain on sale of cost method investments | 6,699 | 0 | 6,793 | 518 |
Impairment of cost method investments | 0 | 0 | 0 | 2,577 |
Gain on sale of equity affiliates | 0 | 1,473 | 0 | 1,370 |
Framebridge [Member] | ||||
Schedule of Non-Operating Income (Expense) [Line Items] | ||||
Gain on acquiring a controlling interest in an equity affiliate | 3,700 | |||
Education [Member] | Higher Education [Member] | Kaplan University Transaction [Member] | ||||
Schedule of Non-Operating Income (Expense) [Line Items] | ||||
Gain related to contingent consideration | $ 600 | $ 1,700 | $ 1,500 | $ 1,800 |
Other Non-Operating Income (Det
Other Non-Operating Income (Details 1) - USD ($) $ in Thousands | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2021 | Jun. 30, 2020 | Jun. 30, 2021 | Jun. 30, 2020 | |
Other Nonoperating Income (Expense) [Abstract] | ||||
Gain on cost method investments | $ 7,783 | $ 2,571 | $ 10,506 | $ 2,571 |
Gain on sale of cost method investments | 6,699 | 0 | 6,793 | 518 |
Gain on sale of businesses | 644 | 1,653 | 1,446 | 1,760 |
Foreign currency gain (loss), net | 677 | (1,070) | 680 | 3,220 |
Gain on acquiring a controlling interest in an equity affiliate | 0 | 3,708 | 0 | 3,708 |
Impairment of cost method investments | 0 | 0 | 0 | (2,577) |
Gain on sale of equity affiliates | 0 | 1,473 | 0 | 1,370 |
Other gain (loss), net | 319 | (235) | 3,017 | 218 |
Total Other Non-Operating Income | $ 16,122 | $ 8,100 | $ 22,442 | $ 10,788 |
Accumulated Other Comprehensi_3
Accumulated Other Comprehensive Income (Loss) (Components of OCI) (Details 1) - USD ($) $ in Thousands | 3 Months Ended | 6 Months Ended | |||||
Jun. 30, 2021 | Mar. 31, 2021 | Jun. 30, 2020 | Mar. 31, 2020 | Jun. 30, 2021 | Jun. 30, 2020 | ||
Other Comprehensive Income (Loss) [Line Items] | |||||||
Other Comprehensive Income (Loss), before tax | $ 1,048 | $ 17,320 | $ (454) | $ (20,743) | |||
Other Comprehensive Income (Loss), income tax | 32 | (252) | 331 | (132) | |||
Other Comprehensive Income (Loss), Net of Tax | 1,080 | $ (1,203) | 17,068 | $ (37,943) | (123) | (20,875) | |
Foreign Currency Translation Adjustment [Member] | |||||||
Other Comprehensive Income (Loss) [Line Items] | |||||||
Other Comprehensive Income (Loss), before Reclassifications, Net of Tax | 681 | ||||||
Reclassification from Accumulated Other Comprehensive Income, Current Period, Net of Tax | 0 | ||||||
Other Comprehensive Income (Loss), before tax | 1,167 | 16,405 | 681 | (20,971) | |||
Other Comprehensive Income (Loss), income tax | 0 | 0 | 0 | 0 | |||
Other Comprehensive Income (Loss), Net of Tax | 1,167 | 16,405 | 681 | (20,971) | |||
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 | (132) | 1,058 | (1,769) | 1,949 | |||
Reclassification from AOCI, Current Period, Tax | 35 | (285) | 478 | (526) | |||
Reclassification from Accumulated Other Comprehensive Income, Current Period, Net of Tax | (97) | 773 | (1,291) | 1,423 | |||
Other Comprehensive Income (Loss), before tax | (132) | 1,058 | (1,769) | 1,949 | |||
Other Comprehensive Income (Loss), income tax | 35 | (285) | 478 | (526) | |||
Other Comprehensive Income (Loss), Net of Tax | (97) | 773 | (1,291) | 1,423 | |||
Net Prior Service (Credit) Cost [Member] | |||||||
Other Comprehensive Income (Loss) [Line Items] | |||||||
Reclassification from Accumulated Other Comprehensive Income, Current Period, before Tax | [1] | 792 | 668 | 1,584 | 1,339 | ||
Reclassification from AOCI, Current Period, Tax | (214) | (181) | (427) | (362) | |||
Reclassification from Accumulated Other Comprehensive Income, Current Period, Net of Tax | 578 | 487 | 1,157 | 977 | |||
Net Actuarial Gain [Member] | |||||||
Other Comprehensive Income (Loss) [Line Items] | |||||||
Reclassification from Accumulated Other Comprehensive Income, Current Period, before Tax | [1] | (924) | 390 | (3,353) | 610 | ||
Reclassification from AOCI, Current Period, Tax | 249 | (104) | 905 | (164) | |||
Reclassification from Accumulated Other Comprehensive Income, Current Period, Net of Tax | (675) | 286 | (2,448) | 446 | |||
Cash Flow Hedges [Member] | |||||||
Other Comprehensive Income (Loss) [Line Items] | |||||||
Other Comprehensive Income (Loss), before Reclassifications, Net of Tax | 180 | ||||||
Reclassification from Accumulated Other Comprehensive Income, Current Period, Net of Tax | 307 | ||||||
Other Comprehensive Income (Loss), before tax | 13 | (143) | 634 | (1,721) | |||
Other Comprehensive Income (Loss), income tax | (3) | 33 | (147) | 394 | |||
Other Comprehensive Income (Loss), Net of Tax | $ 10 | $ (110) | $ 487 | $ (1,327) | |||
[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 | 6 Months Ended | ||||
Jun. 30, 2021 | Mar. 31, 2021 | Jun. 30, 2020 | Mar. 31, 2020 | Jun. 30, 2021 | Jun. 30, 2020 | |
AOCI Including Portion Attributable to Noncontrolling Interest, Net of Tax [Roll Forward] | ||||||
As of | $ 3,864,839 | $ 3,766,393 | $ 3,212,840 | $ 3,326,796 | $ 3,766,393 | $ 3,326,796 |
Other Comprehensive Income (Loss), Net of Tax | 1,080 | (1,203) | 17,068 | (37,943) | (123) | (20,875) |
As of | 3,975,912 | 3,864,839 | 3,213,416 | $ 3,212,840 | 3,975,912 | 3,213,416 |
AOCI Including Portion Attributable to Noncontrolling Interest [Member] | ||||||
AOCI Including Portion Attributable to Noncontrolling Interest, Net of Tax [Roll Forward] | ||||||
As of | 603,314 | 603,314 | ||||
Other comprehensive income before reclassifications | 861 | |||||
Net amount reclassified from accumulated other comprehensive income (loss) | (984) | |||||
Other Comprehensive Income (Loss), Net of Tax | (123) | |||||
As of | 603,191 | 603,191 | ||||
Cumulative Foreign Currency Translation Adjustment [Member] | ||||||
AOCI Including Portion Attributable to Noncontrolling Interest, Net of Tax [Roll Forward] | ||||||
As of | 9,754 | 9,754 | ||||
Other comprehensive income before reclassifications | 681 | |||||
Net amount reclassified from accumulated other comprehensive income (loss) | 0 | |||||
Other Comprehensive Income (Loss), Net of Tax | 1,167 | 16,405 | 681 | (20,971) | ||
As of | 10,435 | 10,435 | ||||
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 | 595,287 | ||||
Other comprehensive income before reclassifications | 0 | |||||
Net amount reclassified from accumulated other comprehensive income (loss) | (97) | 773 | (1,291) | 1,423 | ||
Other Comprehensive Income (Loss), Net of Tax | (97) | 773 | (1,291) | 1,423 | ||
As of | 593,996 | 593,996 | ||||
Cash Flow Hedges [Member] | ||||||
AOCI Including Portion Attributable to Noncontrolling Interest, Net of Tax [Roll Forward] | ||||||
As of | $ (1,727) | (1,727) | ||||
Other comprehensive income before reclassifications | 180 | |||||
Net amount reclassified from accumulated other comprehensive income (loss) | 307 | |||||
Other Comprehensive Income (Loss), Net of Tax | 10 | $ (110) | 487 | $ (1,327) | ||
As of | $ (1,240) | $ (1,240) |
Accumulated Other Comprehensi_5
Accumulated Other Comprehensive Income (Loss) (Reclassifications out of AOCI) (Details 3) - USD ($) $ in Thousands | 3 Months Ended | 6 Months Ended | |||||
Jun. 30, 2021 | Mar. 31, 2021 | Jun. 30, 2020 | Mar. 31, 2020 | Jun. 30, 2021 | Jun. 30, 2020 | ||
Reclassification Adjustment Out Of Accumulated Other Comprehensive Income [Line Items] | |||||||
Interest expense | $ 7,353 | $ 7,377 | $ 15,801 | $ 15,055 | |||
Provision for (Benefit from) Income Taxes | 43,000 | 41,900 | 84,400 | (3,500) | |||
Net of Tax | (115,926) | $ (112,635) | (18,862) | $ 33,891 | (228,561) | 15,029 | |
Reclassification out of Accumulated Other Comprehensive Income [Member] | |||||||
Reclassification Adjustment Out Of Accumulated Other Comprehensive Income [Line Items] | |||||||
Net of Tax | 56 | 897 | (984) | 1,583 | |||
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 | (132) | 1,058 | (1,769) | 1,949 | |||
Provision for (Benefit from) Income Tax | 35 | (285) | 478 | (526) | |||
Reclassifications, net of tax | (97) | 773 | (1,291) | 1,423 | |||
Net Prior Service (Credit) Cost [Member] | |||||||
Reclassification Adjustment Out Of Accumulated Other Comprehensive Income [Line Items] | |||||||
Reclassifications, before tax | [1] | 792 | 668 | 1,584 | 1,339 | ||
Provision for (Benefit from) Income Tax | (214) | (181) | (427) | (362) | |||
Reclassifications, net of tax | 578 | 487 | 1,157 | 977 | |||
Net Actuarial Gain [Member] | |||||||
Reclassification Adjustment Out Of Accumulated Other Comprehensive Income [Line Items] | |||||||
Reclassifications, before tax | [1] | (924) | 390 | (3,353) | 610 | ||
Provision for (Benefit from) Income Tax | 249 | (104) | 905 | (164) | |||
Reclassifications, net of tax | (675) | 286 | (2,448) | 446 | |||
Cash Flow Hedges [Member] | |||||||
Reclassification Adjustment Out Of Accumulated Other Comprehensive Income [Line Items] | |||||||
Reclassifications, net of tax | 307 | ||||||
Cash Flow Hedges [Member] | Reclassification out of Accumulated Other Comprehensive Income [Member] | |||||||
Reclassification Adjustment Out Of Accumulated Other Comprehensive Income [Line Items] | |||||||
Interest expense | 153 | 118 | 307 | 147 | |||
Provision for (Benefit from) Income Taxes | 0 | 6 | 0 | 13 | |||
Net of Tax | $ 153 | $ 124 | $ 307 | $ 160 | |||
[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 | 1 Months Ended | ||
Jun. 30, 2021USD ($)claim | May 31, 2021claim | Dec. 31, 2020USD ($) | |
Loss Contingencies [Line Items] | |||
Number of existing legal claims or proceedings that are likely to have a material effect on the Company's business | 0 | ||
Deferred Charges and Other Assets (includes $748 and $0 of restricted cash) | $ | $ 157,029 | $ 146,770 | |
Maximum [Member] | |||
Loss Contingencies [Line Items] | |||
Loss contingency, estimate of possible loss | $ | $ 10,000 | ||
Education [Member] | Minimum [Member] | |||
Loss Contingencies [Line Items] | |||
Potential claims Per ED | 800 | ||
Claims received | 1,400 |
Business Segments (Narrative) (
Business Segments (Narrative) (Details) $ in Thousands | 1 Months Ended | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2020USD ($) | Jun. 30, 2020USD ($) | Mar. 31, 2020USD ($) | Jun. 30, 2021segment | Jun. 30, 2020USD ($) | |
Business Segments [Line Items] | |||||
Number of reportable segments | segment | 6 | ||||
Restructuring, Settlement and Impairment Provisions | $ 29,200 | $ 31,273 | |||
Operating lease cost | 9,156 | ||||
Clyde's Restaurant Group [Member] | |||||
Business Segments [Line Items] | |||||
Accelerated Depreciation | $ 2,800 | ||||
Education [Member] | Operating Segments [Member] | |||||
Business Segments [Line Items] | |||||
Restructuring, Settlement and Impairment Provisions | 28,783 | ||||
Operating lease cost | 9,156 | ||||
Other Businesses [Member] | Operating Segments [Member] | |||||
Business Segments [Line Items] | |||||
Restructuring, Settlement and Impairment Provisions | 2,490 | ||||
Operating lease cost | 0 | ||||
Kaplan International [Member] | Reportable Subsegments [Member] | Education [Member] | Operating Segments [Member] | |||||
Business Segments [Line Items] | |||||
Restructuring, Settlement and Impairment Provisions | 11,203 | ||||
Operating lease cost | 2,418 | ||||
Higher Education [Member] | Reportable Subsegments [Member] | Education [Member] | Operating Segments [Member] | |||||
Business Segments [Line Items] | |||||
Restructuring, Settlement and Impairment Provisions | 7,204 | ||||
Operating lease cost | $ 2,000 | $ 3,442 |
Business Segments (Restructurin
Business Segments (Restructuring) (Details 1) - USD ($) $ in Thousands | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2020 | Mar. 31, 2020 | Jun. 30, 2020 | ||
Restructuring Cost and Reserve [Line Items] | ||||
Severance | $ 1,224 | |||
Operating lease cost | 9,156 | |||
Accelerated depreciation of property, plant and equipment | 3,368 | |||
Total Restructuring Costs Included in Segment Income (Loss) from Operations (1) | [1] | 13,748 | ||
Lease right-of-use assets | 9,455 | |||
Property, plant and equipment | 2,056 | |||
Non-operating pensions and postretirement benefit income, net | 6,014 | |||
Total Restructuring Related Costs | $ 29,200 | 31,273 | ||
Operating Segments [Member] | Education [Member] | ||||
Restructuring Cost and Reserve [Line Items] | ||||
Severance | 1,224 | |||
Operating lease cost | 9,156 | |||
Accelerated depreciation of property, plant and equipment | 3,368 | |||
Total Restructuring Costs Included in Segment Income (Loss) from Operations (1) | [1] | 13,748 | ||
Lease right-of-use assets | 8,050 | |||
Property, plant and equipment | 1,970 | |||
Non-operating pensions and postretirement benefit income, net | 5,015 | |||
Total Restructuring Related Costs | 28,783 | |||
Operating Segments [Member] | Education [Member] | Reportable Subsegments [Member] | Kaplan International [Member] | ||||
Restructuring Cost and Reserve [Line Items] | ||||
Severance | 1,224 | |||
Operating lease cost | 2,418 | |||
Accelerated depreciation of property, plant and equipment | 1,472 | |||
Total Restructuring Costs Included in Segment Income (Loss) from Operations (1) | [1] | 5,114 | ||
Lease right-of-use assets | 3,790 | |||
Property, plant and equipment | 1,199 | |||
Non-operating pensions and postretirement benefit income, net | 1,100 | |||
Total Restructuring Related Costs | 11,203 | |||
Operating Segments [Member] | Education [Member] | Reportable Subsegments [Member] | Higher Education [Member] | ||||
Restructuring Cost and Reserve [Line Items] | ||||
Severance | 0 | |||
Operating lease cost | $ 2,000 | 3,442 | ||
Accelerated depreciation of property, plant and equipment | 95 | |||
Total Restructuring Costs Included in Segment Income (Loss) from Operations (1) | [1] | 3,537 | ||
Lease right-of-use assets | 2,062 | |||
Property, plant and equipment | 174 | |||
Non-operating pensions and postretirement benefit income, net | 1,431 | |||
Total Restructuring Related Costs | 7,204 | |||
Operating Segments [Member] | Education [Member] | Reportable Subsegments [Member] | Supplemental Education [Member] | ||||
Restructuring Cost and Reserve [Line Items] | ||||
Severance | 0 | |||
Operating lease cost | 3,296 | |||
Accelerated depreciation of property, plant and equipment | 1,801 | |||
Total Restructuring Costs Included in Segment Income (Loss) from Operations (1) | [1] | 5,097 | ||
Lease right-of-use assets | 2,198 | |||
Property, plant and equipment | 597 | |||
Non-operating pensions and postretirement benefit income, net | 2,295 | |||
Total Restructuring Related Costs | 10,187 | |||
Operating Segments [Member] | Education [Member] | Kaplan Corporate and Other [Member] | ||||
Restructuring Cost and Reserve [Line Items] | ||||
Severance | 0 | |||
Operating lease cost | 0 | |||
Accelerated depreciation of property, plant and equipment | 0 | |||
Total Restructuring Costs Included in Segment Income (Loss) from Operations (1) | [1] | 0 | ||
Lease right-of-use assets | 0 | |||
Property, plant and equipment | 0 | |||
Non-operating pensions and postretirement benefit income, net | 189 | |||
Total Restructuring Related Costs | 189 | |||
Operating Segments [Member] | Other Businesses [Member] | ||||
Restructuring Cost and Reserve [Line Items] | ||||
Severance | 0 | |||
Operating lease cost | 0 | |||
Accelerated depreciation of property, plant and equipment | 0 | |||
Total Restructuring Costs Included in Segment Income (Loss) from Operations (1) | [1] | 0 | ||
Lease right-of-use assets | 1,405 | |||
Property, plant and equipment | 86 | |||
Non-operating pensions and postretirement benefit income, net | 999 | |||
Total Restructuring Related Costs | $ 2,490 | |||
[1] | These amounts are included in the segments’ Income (Loss) from Operations before Amortization of Intangible Assets and Impairment of Goodwill and Other Long-Lived Assets |
Business Segments (Information
Business Segments (Information by Operating Segment) (Details 2) - USD ($) $ in Thousands | 3 Months Ended | 6 Months Ended | |||
Jun. 30, 2021 | Jun. 30, 2020 | Jun. 30, 2021 | Jun. 30, 2020 | Dec. 31, 2020 | |
Segment Reporting Information [Line Items] | |||||
Operating Revenues | $ 801,152 | $ 652,871 | $ 1,513,607 | $ 1,385,128 | |
Income (Loss) from Operations before Amortization of Intangible Assets and Impairment of Goodwill and Other Long-Lived Assets | 55,248 | 31,715 | 104,076 | 70,366 | |
Amortization of Intangible Assets and Impairment of Goodwill and Other Long-Lived Assets | 17,657 | 25,838 | 32,641 | 56,404 | |
Income (Loss) from Operations | 37,591 | 5,877 | 71,435 | 13,962 | |
Equity in earnings (losses) of affiliates, net | 1,776 | 1,182 | 15,204 | (365) | |
Interest Expense, Net | (5,477) | (6,423) | (13,035) | (12,950) | |
Non-operating pension and postretirement benefit income, net | 25,216 | 12,136 | 54,003 | 30,539 | |
Gain (loss) on marketable equity securities, net | 83,698 | 39,890 | 162,912 | (60,503) | |
Other Income, Net | 16,122 | 8,100 | 22,442 | 10,788 | |
Income (Loss) Before Income Taxes | 158,926 | 60,762 | 312,961 | (18,529) | |
Depreciation of property, plant and equipment | 16,600 | 22,913 | 33,145 | 39,617 | |
Pension Service Cost | 5,877 | 5,804 | 11,479 | 11,587 | |
Identifiable Assets | 3,910,311 | 3,910,311 | $ 4,006,935 | ||
Marketable equity securities | 751,440 | 751,440 | 573,102 | ||
Investments in Affiliates | 164,203 | 164,203 | 155,777 | ||
Prepaid Pension Cost | 1,750,588 | 1,750,588 | 1,708,305 | ||
Total Assets | 6,576,542 | 6,576,542 | 6,444,119 | ||
Amortization of Intangible Assets | 13,889 | 14,327 | 27,826 | 28,492 | |
Impairment of goodwill and other long-lived assets | 3,768 | 11,511 | 4,815 | 27,912 | |
Operating Segments [Member] | Education [Member] | |||||
Segment Reporting Information [Line Items] | |||||
Operating Revenues | 339,984 | 333,175 | 669,301 | 689,553 | |
Income (Loss) from Operations before Amortization of Intangible Assets and Impairment of Goodwill and Other Long-Lived Assets | 19,221 | 26,545 | 43,369 | 35,438 | |
Amortization of Intangible Assets and Impairment of Goodwill and Other Long-Lived Assets | 6,073 | 14,291 | 11,285 | 18,492 | |
Income (Loss) from Operations | 13,148 | 12,254 | 32,084 | 16,946 | |
Depreciation of property, plant and equipment | 7,482 | 10,324 | 15,262 | 17,653 | |
Pension Service Cost | 2,398 | 2,592 | 4,681 | 5,177 | |
Identifiable Assets | 1,854,482 | 1,854,482 | 1,975,104 | ||
Amortization of Intangible Assets | 3,914 | 4,271 | 8,079 | 8,472 | |
Impairment of goodwill and other long-lived assets | 2,159 | 10,020 | 3,206 | 10,020 | |
Operating Segments [Member] | Education [Member] | Reportable Subsegments [Member] | Kaplan International [Member] | |||||
Segment Reporting Information [Line Items] | |||||
Operating Revenues | 181,276 | 164,713 | 353,171 | 364,328 | |
Income (Loss) from Operations before Amortization of Intangible Assets and Impairment of Goodwill and Other Long-Lived Assets | 14,077 | 16,035 | 24,284 | 35,015 | |
Income (Loss) from Operations | 14,077 | 16,035 | 24,284 | 35,015 | |
Depreciation of property, plant and equipment | 4,835 | 5,619 | 10,087 | 10,197 | |
Pension Service Cost | 77 | 120 | 148 | 232 | |
Identifiable Assets | 1,346,838 | 1,346,838 | 1,455,722 | ||
Operating Segments [Member] | Education [Member] | Reportable Subsegments [Member] | Higher Education [Member] | |||||
Segment Reporting Information [Line Items] | |||||
Operating Revenues | 78,740 | 86,453 | 154,426 | 159,990 | |
Income (Loss) from Operations before Amortization of Intangible Assets and Impairment of Goodwill and Other Long-Lived Assets | 2,374 | 17,050 | 8,627 | 15,030 | |
Income (Loss) from Operations | 2,374 | 17,050 | 8,627 | 15,030 | |
Depreciation of property, plant and equipment | 873 | 832 | 1,725 | 1,555 | |
Pension Service Cost | 1,137 | 1,070 | 2,220 | 2,140 | |
Identifiable Assets | 181,508 | 181,508 | 187,123 | ||
Operating Segments [Member] | Education [Member] | Reportable Subsegments [Member] | Supplemental Education [Member] | |||||
Segment Reporting Information [Line Items] | |||||
Operating Revenues | 77,911 | 79,785 | 157,566 | 161,073 | |
Income (Loss) from Operations before Amortization of Intangible Assets and Impairment of Goodwill and Other Long-Lived Assets | 8,813 | 330 | 21,310 | (6,220) | |
Income (Loss) from Operations | 8,813 | 330 | 21,310 | (6,220) | |
Depreciation of property, plant and equipment | 1,670 | 3,772 | 3,246 | 5,711 | |
Pension Service Cost | 976 | 1,084 | 1,907 | 2,169 | |
Identifiable Assets | 261,229 | 261,229 | 274,687 | ||
Operating Segments [Member] | Education [Member] | Kaplan Corporate and Other [Member] | |||||
Segment Reporting Information [Line Items] | |||||
Operating Revenues | 3,615 | 3,039 | 6,978 | 6,244 | |
Income (Loss) from Operations before Amortization of Intangible Assets and Impairment of Goodwill and Other Long-Lived Assets | (6,042) | (6,870) | (10,949) | (8,392) | |
Income (Loss) from Operations | (12,115) | (21,161) | (22,234) | (26,884) | |
Depreciation of property, plant and equipment | 104 | 101 | 204 | 190 | |
Pension Service Cost | 208 | 318 | 406 | 636 | |
Identifiable Assets | 64,907 | 64,907 | 57,572 | ||
Operating Segments [Member] | Education [Member] | Intersubsegment Eliminations [Member] | |||||
Segment Reporting Information [Line Items] | |||||
Operating Revenues | (1,558) | (815) | (2,840) | (2,082) | |
Income (Loss) from Operations before Amortization of Intangible Assets and Impairment of Goodwill and Other Long-Lived Assets | (1) | 0 | 97 | 5 | |
Income (Loss) from Operations | (1) | 0 | 97 | 5 | |
Operating Segments [Member] | Television Broadcasting [Member] | |||||
Segment Reporting Information [Line Items] | |||||
Operating Revenues | 119,966 | 100,762 | 233,591 | 216,210 | |
Income (Loss) from Operations before Amortization of Intangible Assets and Impairment of Goodwill and Other Long-Lived Assets | 36,964 | 24,988 | 71,301 | 62,124 | |
Amortization of Intangible Assets and Impairment of Goodwill and Other Long-Lived Assets | 1,361 | 1,361 | 2,720 | 2,721 | |
Income (Loss) from Operations | 35,603 | 23,627 | 68,581 | 59,403 | |
Depreciation of property, plant and equipment | 3,543 | 3,446 | 7,016 | 6,789 | |
Pension Service Cost | 956 | 836 | 1,791 | 1,632 | |
Identifiable Assets | 446,499 | 446,499 | 453,988 | ||
Operating Segments [Member] | Manufacturing [Member] | |||||
Segment Reporting Information [Line Items] | |||||
Operating Revenues | 141,123 | 83,239 | 257,083 | 196,697 | |
Income (Loss) from Operations before Amortization of Intangible Assets and Impairment of Goodwill and Other Long-Lived Assets | 19,038 | 5,506 | 34,932 | 19,144 | |
Amortization of Intangible Assets and Impairment of Goodwill and Other Long-Lived Assets | 6,610 | 6,988 | 13,597 | 14,125 | |
Income (Loss) from Operations | 12,428 | (1,482) | 21,335 | 5,019 | |
Depreciation of property, plant and equipment | 2,427 | 2,526 | 4,944 | 5,053 | |
Pension Service Cost | 246 | 395 | 641 | 789 | |
Identifiable Assets | 555,155 | 555,155 | 551,611 | ||
Operating Segments [Member] | Healthcare [Member] | |||||
Segment Reporting Information [Line Items] | |||||
Operating Revenues | 54,696 | 49,181 | 104,739 | 95,175 | |
Income (Loss) from Operations before Amortization of Intangible Assets and Impairment of Goodwill and Other Long-Lived Assets | 9,375 | 10,125 | 17,296 | 14,604 | |
Amortization of Intangible Assets and Impairment of Goodwill and Other Long-Lived Assets | 780 | 1,307 | 1,561 | 2,617 | |
Income (Loss) from Operations | 8,595 | 8,818 | 15,735 | 11,987 | |
Depreciation of property, plant and equipment | 331 | 493 | 648 | 1,033 | |
Pension Service Cost | 108 | 112 | 280 | 271 | |
Identifiable Assets | 165,521 | 165,521 | 160,654 | ||
Operating Segments [Member] | Other Businesses [Member] | |||||
Segment Reporting Information [Line Items] | |||||
Operating Revenues | 145,899 | 86,863 | 249,938 | 188,145 | |
Income (Loss) from Operations before Amortization of Intangible Assets and Impairment of Goodwill and Other Long-Lived Assets | (14,780) | (22,429) | (33,472) | (39,352) | |
Amortization of Intangible Assets and Impairment of Goodwill and Other Long-Lived Assets | 2,833 | 1,891 | 3,478 | 18,449 | |
Income (Loss) from Operations | (17,613) | (24,320) | (36,950) | (57,801) | |
Depreciation of property, plant and equipment | 2,659 | 5,948 | 4,949 | 8,738 | |
Pension Service Cost | 487 | 403 | 856 | 866 | |
Identifiable Assets | 805,245 | 805,245 | 517,533 | ||
Corporate Office [Member] | |||||
Segment Reporting Information [Line Items] | |||||
Operating Revenues | 0 | 0 | 0 | 0 | |
Income (Loss) from Operations before Amortization of Intangible Assets and Impairment of Goodwill and Other Long-Lived Assets | (14,570) | (13,020) | (29,350) | (21,592) | |
Amortization of Intangible Assets and Impairment of Goodwill and Other Long-Lived Assets | 0 | 0 | 0 | 0 | |
Income (Loss) from Operations | (14,570) | (13,020) | (29,350) | (21,592) | |
Depreciation of property, plant and equipment | 158 | 176 | 326 | 351 | |
Pension Service Cost | 1,682 | 1,466 | 3,230 | 2,852 | |
Identifiable Assets | 83,409 | 83,409 | $ 348,045 | ||
Intersegment Elimination [Member] | |||||
Segment Reporting Information [Line Items] | |||||
Operating Revenues | $ (516) | $ (349) | $ (1,045) | $ (652) |