Cover Page
Cover Page - shares | 3 Months Ended | |
Mar. 31, 2023 | Apr. 28, 2023 | |
Document Type | 10-Q | |
Document Quarterly Report | true | |
Document Period End Date | Mar. 31, 2023 | |
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 $1.00 per share | |
Trading Symbol | GHC | |
Security Exchange Name | NYSE | |
Entity Current Reporting Status | Yes | |
Entity Interactive Data Current | Yes | |
Entity Filer Category | Large Accelerated Filer | |
Entity Small Business | false | |
Entity Emerging Growth Company | false | |
Entity Shell Company | false | |
Entity Central Index Key | 0000104889 | |
Current Fiscal Year End Date | --12-31 | |
Document Fiscal Year Focus | 2023 | |
Document Fiscal Period Focus | Q1 | |
Amendment Flag | false | |
Class A Common Stock [Member] | ||
Entity Common Stock, Shares Outstanding | 964,001 | |
Class B Common Stock [Member] | ||
Entity Common Stock, Shares Outstanding | 3,778,767 |
Condensed Consolidated Statemen
Condensed Consolidated Statements of Operations (Unaudited) - USD ($) shares in Thousands, $ in Thousands | 3 Months Ended | |
Mar. 31, 2023 | Mar. 31, 2022 | |
Operating Revenues | ||
Operating Revenues | $ 1,031,546 | $ 914,721 |
Operating Costs and Expenses | ||
Selling, general and administrative | 241,962 | 224,862 |
Depreciation of property, plant and equipment | 20,025 | 19,475 |
Amortization of intangible assets | 13,944 | 14,912 |
Impairment of long-lived assets | 745 | 0 |
Total Operating Costs and Expenses | 1,003,890 | 874,750 |
Income from Operations | 27,656 | 39,971 |
Equity in earnings of affiliates, net | 4,661 | 2,604 |
Interest income | 1,204 | 715 |
Interest expense | (14,294) | (11,417) |
Non-operating pension and postretirement benefit income, net | 31,845 | 50,505 |
Gain on marketable equity securities, net | 18,022 | 46,912 |
Other income, net | 3,083 | 2,876 |
Income Before Income Taxes | 72,177 | 132,166 |
Provision for Income Taxes | 19,200 | 35,600 |
Net Income | 52,977 | 96,566 |
Net Income Attributable to Noncontrolling Interests | (705) | (942) |
Net Income Attributable to Graham Holdings Company Common Stockholders | $ 52,272 | $ 95,624 |
Per Share Information Attributable to Graham Holdings Company Common Stockholders | ||
Basic net income per common share (in USD per share) | $ 10.91 | $ 19.50 |
Basic average number of common shares outstanding (in shares) | 4,759 | 4,871 |
Diluted net income per common share (in USD per share) | $ 10.88 | $ 19.45 |
Diluted average number of common shares outstanding (in shares) | 4,776 | 4,885 |
Services [Member] | ||
Operating Revenues | ||
Operating Revenues | $ 586,863 | $ 557,569 |
Operating Costs and Expenses | ||
Cost of services and goods | 356,942 | 324,981 |
Goods [Member] | ||
Operating Revenues | ||
Operating Revenues | 444,683 | 357,152 |
Operating Costs and Expenses | ||
Cost of services and goods | $ 370,272 | $ 290,520 |
Condensed Consolidated Statem_2
Condensed Consolidated Statements of Comprehensive Income (Unaudited) - USD ($) $ in Thousands | 3 Months Ended | |
Mar. 31, 2023 | Mar. 31, 2022 | |
Statement of Comprehensive Income [Abstract] | ||
Net Income | $ 52,977 | $ 96,566 |
Foreign currency translation adjustments: | ||
Translation adjustments arising during the period | 8,994 | (1,738) |
Pension and other postretirement plans: | ||
Amortization of net prior service cost included in net income | 409 | 716 |
Amortization of net actuarial gain included in net income | (10,766) | (17,774) |
Total pension and other postretirement plans, before tax | (10,357) | (17,058) |
Cash flow hedges (loss) gain | (930) | 1,642 |
Other Comprehensive Income (Loss), Before Tax | (2,293) | (17,154) |
Income tax benefit related to items of other comprehensive income (loss) | 2,878 | 4,019 |
Other Comprehensive Income (Loss), Net of Tax | 585 | (13,135) |
Comprehensive Income | 53,562 | 83,431 |
Comprehensive income attributable to noncontrolling interests | (705) | (942) |
Total Comprehensive Income Attributable to Graham Holdings Company | $ 52,857 | $ 82,489 |
Condensed Consolidated Balance
Condensed Consolidated Balance Sheets - USD ($) $ in Thousands | Mar. 31, 2023 | Dec. 31, 2022 |
Current Assets | ||
Cash and cash equivalents | $ 123,469 | $ 169,319 |
Restricted cash | 30,777 | 20,467 |
Investments in marketable equity securities and other investments | 616,379 | 622,408 |
Accounts receivable, net | 507,514 | 560,779 |
Inventories and contracts in progress | 246,220 | 226,811 |
Prepaid expenses | 112,982 | 97,450 |
Income taxes receivable | 3,335 | 9,313 |
Other current assets | 1,914 | 1,547 |
Total Current Assets | 1,642,590 | 1,708,094 |
Property, Plant and Equipment, Net | 506,995 | 503,000 |
Lease Right-of-Use Assets | 424,938 | 429,403 |
Investments in Affiliates | 194,960 | 186,419 |
Goodwill, Net | 1,567,594 | 1,560,953 |
Indefinite-Lived Intangible Assets | 180,038 | 178,934 |
Amortized Intangible Assets, Net | 147,553 | 161,422 |
Prepaid Pension Cost | 1,671,477 | 1,658,046 |
Deferred Income Taxes | 6,870 | 6,812 |
Deferred Charges and Other Assets (includes $476 and $646 of restricted cash) | 199,184 | 189,132 |
Total Assets | 6,542,199 | 6,582,215 |
Current Liabilities | ||
Accounts payable and accrued liabilities | 536,959 | 563,005 |
Deferred revenue | 373,173 | 381,416 |
Income taxes payable | 15,026 | 3,766 |
Current portion of lease liabilities | 72,210 | 70,007 |
Current portion of long-term debt | 123,018 | 155,813 |
Dividends declared | 7,902 | 0 |
Total Current Liabilities | 1,128,288 | 1,174,007 |
Accrued Compensation and Related Benefits | 134,541 | 134,921 |
Other Liabilities | 37,373 | 37,506 |
Deferred Income Taxes | 462,109 | 466,275 |
Mandatorily Redeemable Noncontrolling Interest | 32,309 | 30,845 |
Lease Liabilities | 387,866 | 393,626 |
Long-Term Debt | 568,101 | 570,547 |
Total Liabilities | 2,750,587 | 2,807,727 |
Commitments and Contingencies (Note 14) | ||
Redeemable Noncontrolling Interests | 21,882 | 21,827 |
Preferred Stock | 0 | 0 |
Common Stockholders’ Equity | ||
Common stock | 20,000 | 20,000 |
Capital in excess of par value | 388,173 | 390,438 |
Retained earnings | 7,199,588 | 7,163,128 |
Accumulated other comprehensive income, net of taxes | ||
Cumulative foreign currency translation adjustment | (45,644) | (54,638) |
Unrealized gain on pensions and other postretirement plans | 380,898 | 388,591 |
Cash flow hedges | 1,482 | 2,198 |
Cost of Class B common stock held in treasury | (4,197,279) | (4,178,334) |
Total Common Stockholders’ Equity | 3,747,218 | 3,731,383 |
Noncontrolling Interests | 22,512 | 21,278 |
Total Equity | 3,769,730 | 3,752,661 |
Total Liabilities and Equity | $ 6,542,199 | $ 6,582,215 |
Condensed Consolidated Balanc_2
Condensed Consolidated Balance Sheet (Parentheticals) - USD ($) $ in Thousands | Mar. 31, 2023 | Dec. 31, 2022 |
Statement of Financial Position [Abstract] | ||
Restricted Cash, Noncurrent | $ 476 | $ 646 |
Condensed Consolidated Statem_3
Condensed Consolidated Statements of Cash Flows (Unaudited) - USD ($) | 3 Months Ended | |
Mar. 31, 2023 | Mar. 31, 2022 | |
Cash Flows from Operating Activities | ||
Net Income | $ 52,977,000 | $ 96,566,000 |
Adjustments to reconcile net income to net cash provided by operating activities: | ||
Depreciation, amortization and long-lived asset impairments | 34,714,000 | 34,387,000 |
Amortization of lease right-of-use asset | 16,492,000 | 17,569,000 |
Net pension benefit and special separation benefit expense | (23,162,000) | (44,782,000) |
Gain on marketable equity securities and cost method investments, net | (19,853,000) | (46,912,000) |
Gain on disposition of property, plant and equipment and investments, net | (1,053,000) | (1,593,000) |
Credit loss expense and provision for other receivables | 15,000 | 1,503,000 |
Stock-based compensation expense | 1,802,000 | 1,677,000 |
Foreign exchange loss | 1,504,000 | 1,047,000 |
Equity in earnings of affiliates, net of distributions | (4,655,000) | 2,020,000 |
(Benefit from) provision for deferred income taxes | (1,781,000) | 16,182,000 |
Contingent consideration accretion expense | 315,000 | 76,000 |
Change in operating assets and liabilities: | ||
Accounts receivable, net | 54,245,000 | 89,228,000 |
Inventories | (19,318,000) | (15,298,000) |
Accounts payable and accrued liabilities | (48,264,000) | (78,819,000) |
Deferred revenue | (2,387,000) | (9,037,000) |
Income taxes receivable/payable | 17,274,000 | 18,392,000 |
Lease liabilities | (16,182,000) | (20,247,000) |
Other assets and other liabilities, net | (18,800,000) | (18,549,000) |
Other | (1,072,000) | 1,482,000 |
Net Cash Provided by Operating Activities | 22,811,000 | 44,892,000 |
Cash Flows from Investing Activities | ||
Proceeds from sales of marketable equity securities | 29,028,000 | 55,731,000 |
Purchases of property, plant and equipment | (22,554,000) | (14,207,000) |
Purchases of marketable equity securities | (6,162,000) | 0 |
Investments in equity affiliates, cost method and other investments | (4,735,000) | (23,698,000) |
Net proceeds from disposition of property, plant and equipment, and investments | 2,706,000 | 1,334,000 |
Other | (237,000) | 363,000 |
Net Cash (Used in) Provided by Investing Activities | (1,954,000) | 19,523,000 |
Cash Flows from Financing Activities | ||
Net payments under revolving credit facilities | (33,000,000) | (37,000,000) |
Common shares repurchased | (23,439,000) | (9,527,000) |
Dividends paid | (7,910,000) | (7,749,000) |
Net proceeds from (repayments of) vehicle floor plan payable | 7,196,000 | (3,889,000) |
Repayments of borrowings | (3,999,000) | (977,000) |
Proceeds from (repayments of) bank overdrafts | 3,153,000 | (2,868,000) |
Deferred payments of acquisition | (161,000) | (3,294,000) |
Other | 358,000 | 942,000 |
Net Cash Used in Financing Activities | (57,802,000) | (64,362,000) |
Effect Of Currency Exchange Rate Change | 1,235,000 | (208,000) |
Net Decrease in Cash and Cash Equivalents and Restricted Cash | (35,710,000) | (155,000) |
Beginning Cash and Cash Equivalents and Restricted Cash | 190,432,000 | 158,843,000 |
Ending Cash and Cash Equivalents and Restricted Cash | $ 154,722,000 | $ 158,688,000 |
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, 2021 | $ 4,411,669 | $ 20,000 | $ 389,456 | $ 7,126,761 | $ 971,388 | $ (4,108,022) | $ 12,086 |
Increase (Decrease) in Stockholders' Equity [Roll Forward] | |||||||
Net Income | 96,566 | 96,566 | |||||
Net income attributable to noncontrolling interest | 0 | (986) | 986 | ||||
Net (income) loss attributable to redeemable noncontrolling interests | 44 | 44 | |||||
Change in redemption value of redeemable noncontrolling interest | 64 | 64 | |||||
Distribution to noncontrolling interest | (357) | (357) | |||||
Dividends on common stock | (15,497) | (15,497) | |||||
Repurchase of Class B Common Stock | (9,527) | (9,527) | |||||
Issuance of Class B common stock | 1,437 | 1,437 | |||||
Amortization of unearned stock compensation and stock option expense | 1,677 | 1,677 | |||||
Other comprehensive income (loss), net of income taxes | (13,135) | (13,135) | |||||
As of at Mar. 31, 2022 | 4,472,941 | 20,000 | 391,133 | 7,206,888 | 958,253 | (4,116,112) | 12,779 |
As of at Dec. 31, 2021 | 14,311 | ||||||
Increase (Decrease) in Temporary Equity [Roll Forward] | |||||||
Net income (loss) attributable to redeemable noncontrolling interests | (44) | ||||||
Change in redemption value of redeemable noncontrolling interests | 64 | ||||||
As of at Mar. 31, 2022 | 14,331 | ||||||
As of at Dec. 31, 2022 | 3,752,661 | 20,000 | 390,438 | 7,163,128 | 336,151 | (4,178,334) | 21,278 |
Increase (Decrease) in Stockholders' Equity [Roll Forward] | |||||||
Net Income | 52,977 | 52,977 | |||||
Net income attributable to noncontrolling interest | 0 | (650) | 650 | ||||
Net (income) loss attributable to redeemable noncontrolling interests | (55) | (55) | |||||
Change in redemption value of redeemable noncontrolling interest | 64 | 64 | |||||
Noncontrolling interest capital contribution | 520 | 520 | |||||
Distribution to redeemable noncontrolling interest | 0 | ||||||
Dividends on common stock | (15,812) | (15,812) | |||||
Repurchase of Class B Common Stock | (23,439) | (23,439) | |||||
Issuance of Class B common stock | 427 | (4,067) | 4,494 | ||||
Amortization of unearned stock compensation and stock option expense | 1,802 | 1,802 | |||||
Other comprehensive income (loss), net of income taxes | 585 | 585 | |||||
As of at Mar. 31, 2023 | 3,769,730 | $ 20,000 | $ 388,173 | $ 7,199,588 | $ 336,736 | $ (4,197,279) | $ 22,512 |
As of at Dec. 31, 2022 | 21,827 | ||||||
Increase (Decrease) in Temporary Equity [Roll Forward] | |||||||
Net income (loss) attributable to redeemable noncontrolling interests | 55 | ||||||
Change in redemption value of redeemable noncontrolling interests | 70 | ||||||
Distribution to redeemable noncontrolling interest | (70) | ||||||
As of at Mar. 31, 2023 | $ 21,882 |
Organization, Basis of Presenta
Organization, Basis of Presentation and Recent Accounting Pronouncements | 3 Months Ended |
Mar. 31, 2023 | |
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 holding company whose operations include: education; television broadcasting–online, podcast, print and local TV news; manufacturing; home health and hospice care; automotive dealerships; and other businesses . The Company’s Kaplan subsidiary provides a wide variety of educational services, both domestically and outside the United States (U.S.). The Company’s television broadcast segment owns and operates seven television broadcasting stations. The Company’s manufacturing companies comprise the ownership of a supplier of pressure treated wood, a manufacturer of electrical solutions, a manufacturer of lifting solutions, and a supplier of parts used in electric utilities and industrial systems. The Company’s healthcare segment provides home health, hospice and palliative services, in-home specialty pharmacy infusion therapies, applied behavior analysis (ABA) therapy, physician services for allergy, asthma and immunology patients, in-home aesthetics, and healthcare software-as-a-service technology. The Company’s automotive business comprises six dealerships and valet repair services. The Company’s other businesses include a consumer internet company; restaurants; a custom framing company; a marketing solutions provider; a customer data and analytics software company; website and print magazines; an ad-free audio streaming service for children; and a daily local news podcast and newsletter company. Basis of Presentation – The accompanying condensed consolidated financial statements have been prepared in accordance with: (i) generally accepted accounting principles in the United States of America (GAAP) for interim financial information; (ii) the instructions to Form 10-Q; and (iii) the guidance of Rule 10-01 of Regulation S-X under the Securities and Exchange Act of 1934, as amended, for financial statements required to be filed with the Securities and Exchange Commission (SEC). They include the assets, liabilities, results of operations and cash flows of the Company, including its domestic and foreign subsidiaries that are more than 50% owned or otherwise controlled by the Company. As permitted under such rules, certain notes and other financial information normally required by GAAP have been condensed or omitted. Management believes the accompanying condensed consolidated financial statements reflect all normal and recurring adjustments necessary for a fair statement of the Company’s financial position, results of operations, and cash flows as of and for the periods presented herein. The Company’s results of operations for the three months ended March 31, 2023 and 2022 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, 2022. The year-end condensed consolidated balance sheet data was derived from audited financial statements, but does not include all disclosures required by GAAP. Use of Estimates in the Preparation of the Condensed Consolidated Financial Statements – The preparation of the condensed consolidated financial statements in conformity with GAAP requires management to make estimates and judgments that affect the amounts reported herein. Management bases its estimates and assumptions on historical experience and on various other factors that are believed to be reasonable under the circumstances. Due to the inherent uncertainty involved in making estimates, actual results reported in future periods may be affected by changes in those estimates. Recently Adopted and Issued Accounting Pronouncements – In September 2022, the Financial Accounting Standards Board issued new guidance that requires a buyer in a supplier finance program to disclose certain qualitative and quantitative information about the program’s nature, activity during the period, changes from period to period, and potential magnitude. The standard was adopted by the Company in the first quarter of 2023 and did not have a significant impact on its Condensed Consolidated Financial Statements. |
Acquisitions and Dispositions o
Acquisitions and Dispositions of Businesses | 3 Months Ended |
Mar. 31, 2023 | |
Acquisitions And Dispositions [Abstract] | |
Acquisitions and Dispositions of Businesses | ACQUISITIONS AND DISPOSITIONS OF BUSINESSES Acquisitions . In January 2023, Graham Healthcare Group (GHG) acquired two small businesses which are included in healthcare. During 2022, the Company acquired seven businesses: five in healthcare and two in automotive, for $143.2 million in cash and contingent consideration and the assumption of floor plan payables. The assets and liabilities of the companies acquired were recorded at their estimated fair values at the date of acquisition. In May 2022, GHG acquired two small businesses which are included in healthcare. On July 5, 2022, the Company’s automotive subsidiary acquired two automotive dealerships, including the real property for the dealership operations. In addition to a cash payment and the assumption of $10.9 million in floor plan payables, the automotive subsidiary borrowed $77.4 million to finance the acquisition. The dealerships are operated and managed by an entity affiliated with Christopher J. Ourisman, a member of the Ourisman Automotive Group family of dealerships. These acquisitions expand the Company’s automotive business operations and are included in automotive. In July 2022, GHG acquired a 100% interest in a multi-state provider of ABA clinics. The acquisition is expected to expand the product offerings of the healthcare division and is included in healthcare. In August 2022, GHG acquired two small businesses which are included in healthcare. Acquisition-related costs for acquisitions were expensed as incurred. The aggregate purchase price of the 2022 acquisitions was allocated as follows, based on acquisition date fair values to the following assets and liabilities: Purchase Price Allocation Year Ended (in thousands) December 31, 2022 Accounts receivable $ 3,172 Inventory 21,278 Property, plant and equipment 36,255 Lease right-of-use assets 4,773 Goodwill 56,163 Indefinite-lived intangible assets 41,800 Amortized intangible assets 1,200 Other assets 481 Deferred income taxes 241 Floor plan payables (10,908) Other liabilities (3,798) Current and noncurrent lease liabilities (5,865) Redeemable noncontrolling interest (2,164) Noncontrolling interest (512) Aggregate purchase price, net of cash acquired $ 142,116 The 2022 fair values recorded were based upon valuations and the estimates and assumptions used in such valuations are subject to change within the measurement period (up to one year from the acquisition date). The recording of deferred tax assets or liabilities and the final amount of residual goodwill is 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 $38.5 million of goodwill for income tax purposes for the acquisitions completed in 2022. The acquired companies were consolidated into the Company’s financial statements starting on their respective acquisition dates. The following unaudited pro forma information includes the 2022 acquisitions as if they occurred at the beginning of 2021: Three Months Ended (in thousands) 2022 Operating revenues $ 998,193 Net income 100,676 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. Disposition of Businesses. In October 2022, the Company entered into an agreement to merge the CyberVista business with CyberWire, Inc. in return for a noncontrolling financial interest in the merged entity, N2K Networks, Inc. (the CyberVista transaction). The Company deconsolidated the CyberVista subsidiary, which was included in other businesses, and accounts for its continuing interest in N2K Networks under the equity method of accounting (see Note 3). Other Transactions. In November 2022, a CSI Pharmacy Holdings Company, LLC (CSI) minority shareholder put some shares to the Company, which had a redemption value of $1.2 million. Following the redemption, the Company owns 76.5% of CSI. |
Investments
Investments | 3 Months Ended |
Mar. 31, 2023 | |
Investments [Abstract] | |
Investments | INVESTMENTS Money Market Investments. As of March 31, 2023 and December 31, 2022, the Company had money market investments of $2.2 million and $7.7 million, respectively, that are classified as cash and cash equivalents in the Company’s Condensed Consolidated Balance Sheets. Investments in Marketable Equity Securities. Investments in marketable equity securities consist of the following: As of March 31, December 31, (in thousands) Total cost $ 234,157 $ 270,764 Gross unrealized gains 373,842 363,147 Gross unrealized losses (4,456) (23,990) Total Fair Value $ 603,543 $ 609,921 At March 31, 2023 and December 31, 2022, the Company owned 55,430 shares in Markel Corporation (Markel) valued at $70.8 million and $73.0 million, respectively. The Chief Executive Officer of Markel, Mr. Thomas S. Gayner, is a member of the Company’s Board of Directors. As of March 31, 2023, the Company owned 422 Class A and 482,945 Class B shares in Berkshire Hathaway valued at $345.6 million, which exceeded 5% of the Company’s total assets. The Company purchased $4.6 million of marketable equity securities during the first three months of 2023. There were no purchases of marketable equity securities during the first three months of 2022. During the first three months of 2023, the gross cumulative realized net losses from the sales of marketable equity securities were $12.2 million. The total proceeds from such sales were $29.0 million. During the first three months of 2022, the gross cumulative realized gains from the sales of marketable equity securities were $41.6 million. The total proceeds from such sales were $55.7 million. The net gain on marketable equity securities comprised the following: Three Months Ended (in thousands) 2023 2022 Gain on marketable equity securities, net $ 18,022 $ 46,912 Less: Net losses in earnings from marketable equity securities sold 3,657 5,767 Net unrealized gains in earnings from marketable equity securities still held at the end of the period $ 21,679 $ 52,679 Investments in Affiliates. As of March 31, 2023, the Company held a 49.9% interest in N2K Networks on a fully diluted basis, and accounts for its investment under the equity method. The Company holds two of the five seats of N2K Networks’ governing board with the other shareholders retaining substantive participation rights to control the financial and operating decisions of N2K Networks through representation on the board. As of March 31, 2023, the Company held an approximate 18% interest in Intersection Holdings, LLC (Intersection), and accounts for its investment under the equity method. The Company holds two of the ten seats of Intersection’s governing board, which allows the Company to exercise significant influence over Intersection. As of March 31, 2023, the Company also held investments in several other affiliates; GHG held a 40% interest in Residential Home Health Illinois, a 40% 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). During the first quarter of 2022, GHG invested an additional $18.5 million in the Residential Home Health Illinois and Residential Hospice Illinois affiliates to fund their acquisition of certain home health and hospice assets of the NorthShore University HealthSystem. The transaction diluted GHG’s interest in Residential Hospice Illinois resulting in a $0.6 million gain on the sale of investment in affiliate (see Note 12) . For the three months ended March 31, 2023 and 2022, the Company recorded $3.5 million and $3.3 million, respectively, in revenue for services provided to the affiliates of GHG. The Company had $50.1 million and $49.1 million in its investment account that represents cumulative undistributed income in its investments in affiliates as of March 31, 2023 and December 31, 2022, respectively. Additionally, Kaplan International Holdings Limited (KIHL) held a 45% interest in a joint venture formed with University of York. 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 outstanding balance on this loan was £20.4 million as of March 31, 2023. The loan is repayable by December 2041. Cost Method Investments. The Company held investments without readily determinable fair values in a number of equity securities that are accounted for as cost method investments, which are recorded at cost, less impairment, and adjusted for observable price changes for identical or similar investments of the same issuer. The carrying value of these investments was $69.4 million and $66.7 million as of March 31, 2023 and December 31, 2022, respectively. During the three months ended March 31, 2023, the Company recorded gains of $1.8 million to those equity securities based on observable transactions. |
Accounts Receivable, Accounts P
Accounts Receivable, Accounts Payable and Accrued Liabilities | 3 Months Ended |
Mar. 31, 2023 | |
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 March 31, December 31, (in thousands) Receivables from contracts with customers, less estimated credit losses of $22,935 and $21,387 $ 478,726 $ 533,622 Other receivables 28,788 27,157 $ 507,514 $ 560,779 Credit loss expense was $0.5 million and $1.5 million for the three months ended March 31, 2023 and 2022, respectively. Accounts payable and accrued liabilities consist of the following: As of March 31, December 31, (in thousands) Accounts payable $ 133,805 $ 136,186 Accrued compensation and related benefits 112,378 149,823 Other accrued liabilities 290,776 276,996 $ 536,959 $ 563,005 Cash overdrafts of $3.6 million and $0.5 million are included in accounts payable as of March 31, 2023 and December 31, 2022, respectively. |
Inventories, Contracts in Progr
Inventories, Contracts in Progress and Vehicle Floor Plan Payable | 3 Months Ended |
Mar. 31, 2023 | |
Inventory, Net of Allowances, Customer Advances and Progress Billings [Abstract] | |
Inventories, Contracts in Progress and Vehicle Floor Plan Payable | INVENTORIES, CONTRACTS IN PROGRESS AND VEHICLE FLOOR PLAN PAYABLE Inventories and contracts in progress consist of the following: As of March 31, December 31, (in thousands) Raw materials $ 67,950 $ 68,494 Work-in-process 15,141 15,718 Finished goods 160,168 140,548 Contracts in progress 2,961 2,051 $ 246,220 $ 226,811 The Company finances new, used and service loaner vehicle inventory through standardized floor plan facilities with Truist Bank (Truist floor plan facility) and Ford Motor Credit Company (Ford floor plan facility). At March 31, 2023, the floor plan facilities bore interest at variable rates that are based on Secured Overnight Financing Rate (SOFR) and prime-based interest rates. The weighted average interest rate for the floor plan facilities was 5.4% and 2.0% for the three months ended March 31, 2023 and 2022, respectively. As of March 31, 2023, the aggregate capacity under the floor plan facilities was $106.3 million, of which $76.9 million had been utilized, and is included in accounts payable and accrued liabilities in the Condensed Consolidated Balance Sheet. Changes in the vehicle floor plan payable are reported as cash flows from financing activities in the Condensed Consolidated Statements of Cash Flows. The floor plan facilities are collateralized by vehicle inventory and other assets of the relevant dealership subsidiary, and contains a number of covenants, including, among others, covenants restricting the dealership subsidiary with respect to the creation of liens and changes in ownership, officers and key management personnel. The Company was in compliance with all of these restrictive covenants as of March 31, 2023. The floor plan interest expense related to the vehicle floor plan arrangements is offset by amounts received from manufacturers in the form of floor plan assistance capitalized in inventory and recorded against cost of goods sold in the Condensed Consolidated Statements of Operations when the associated inventory is sold. For the three months ended March 31, 2023 and 2022, 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 | 3 Months Ended |
Mar. 31, 2023 | |
Goodwill and Intangible Assets Disclosure [Abstract] | |
Goodwill and Other Intangible Assets | GOODWILL AND OTHER INTANGIBLE ASSETS Amortization of intangible assets for the three months ended March 31, 2023 and 2022, was $13.9 million and $14.9 million, respectively. Amortization of intangible assets is estimated to be approximately $36 million for the remainder of 2023, $37 million in 2024, $29 million in 2025, $20 million in 2026, $6 million in 2027 and $20 million thereafter. The changes in the carrying amount of goodwill, by segment, were as follows: (in thousands) Education Television Manufacturing Healthcare Automotive Other Total Balance as of December 31, 2022 Goodwill $ 1,145,502 $ 190,815 $ 234,993 $ 135,870 $ 84,697 $ 251,216 $ 2,043,093 Accumulated impairment losses (331,151) — (34,302) — — (116,687) (482,140) 814,351 190,815 200,691 135,870 84,697 134,529 1,560,953 Acquisitions — — — 385 — — 385 Foreign currency exchange rate changes 6,256 — — — — — 6,256 Balance as of March 31, 2023 Goodwill 1,151,758 190,815 234,993 136,255 84,697 251,216 2,049,734 Accumulated impairment losses (331,151) — (34,302) — — (116,687) (482,140) $ 820,607 $ 190,815 $ 200,691 $ 136,255 $ 84,697 $ 134,529 $ 1,567,594 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, 2022 Goodwill $ 579,561 $ 174,564 $ 391,377 $ 1,145,502 Accumulated impairment losses — (111,324) (219,827) (331,151) 579,561 63,240 171,550 814,351 Foreign currency exchange rate changes 6,252 — 4 6,256 Balance as of March 31, 2023 Goodwill 585,813 174,564 391,381 1,151,758 Accumulated impairment losses — (111,324) (219,827) (331,151) $ 585,813 $ 63,240 $ 171,554 $ 820,607 Other intangible assets consist of the following: As of March 31, 2023 As of December 31, 2022 (in thousands) Useful Life Gross Accumulated Net Carrying Gross Accumulated Net Amortized Intangible Assets Student and customer relationships 2–10 years $ 298,022 $ 236,486 $ 61,536 $ 297,766 $ 230,429 $ 67,337 Trade names and trademarks 2–15 years 148,286 84,833 63,453 148,102 81,078 67,024 Network affiliation agreements 10 years 17,400 11,112 6,288 17,400 10,367 7,033 Databases and technology 3–6 years 36,251 33,714 2,537 36,216 32,219 3,997 Noncompete agreements 2–5 years 20 16 4 1,000 995 5 Other 1–8 years 43,644 29,909 13,735 43,644 27,618 16,026 $ 543,623 $ 396,070 $ 147,553 $ 544,128 $ 382,706 $ 161,422 Indefinite-Lived Intangible Assets Franchise agreements $ 85,858 $ 85,858 Trade names and trademarks 83,009 81,905 FCC licenses 11,000 11,000 Licensure and accreditation 150 150 Other 21 21 $ 180,038 $ 178,934 |
Debt
Debt | 3 Months Ended |
Mar. 31, 2023 | |
Debt Disclosure [Abstract] | |
Debt | DEBT The Company’s borrowings consist of the following: As of (in thousands) Maturities Stated Interest Rate Effective Interest Rate March 31, December 31, Unsecured notes (1) 2026 5.75% 5.75% $ 397,725 $ 397,548 Revolving credit facility 2027 4.80% - 8.38% 5.81% 168,766 200,236 Truist Bank commercial note (2) 2031 6.10% - 6.37% 6.33% 23,276 23,522 Truist Bank commercial note 2032 6.38% - 6.72% 6.54% 63,483 66,513 Truist Bank commercial note (3) 2032 6.13% - 6.47% 6.40% 26,211 26,548 Pinnacle Bank term loan 2024 4.15% 4.18% 8,152 8,433 Other indebtedness 2025 - 2030 0.00% - 16.00% 3,506 3,560 Total Debt 691,119 726,360 Less: current portion (123,018) (155,813) Total Long-Term Debt $ 568,101 $ 570,547 ___________ _ (1) The carrying value is net of $2.3 million and $2.5 million of unamortized debt issuance costs as of March 31, 2023 and December 31, 2022, respectively . (2) The carrying value is net of $0.1 million of unamortized debt issuance costs as of March 31, 2023 and December 31, 2022. (3) The carrying value is net of $0.1 million of unamortized debt issuance costs as of March 31, 2023 and December 31, 2022. At March 31, 2023 and December 31, 2022, the fair value of the Company’s 5.75% unsecured notes, based on quoted market prices (Level 2 fair value assessment), totaled $393.7 million and $395.1 million, respectively. The outstanding balance on the Company’s $300 million unsecured revolving credit facility was $168.8 million as of March 31, 2023, consisting of U.S. dollar borrowings of $107 million with interest payable at SOFR plus 1.375% or prime rate plus 0.375%, and British Pound (GBP) borrowings of £50 million with interest payable at Daily Sterling Overnight Index Average (SONIA) plus 1.375%. The fair value of the Company’s other debt, which is based on Level 2 inputs, approximates its carrying value as of March 31, 2023 and December 31, 2022. The Company is in compliance with all financial covenants of the revolving credit facility, commercial notes, and Pinnacle Bank term loan as of March 31, 2023. During the three months ended March 31, 2023 and 2022, the Company had average borrowings outstanding of approximately $735.0 million and $665.0 million, respectively, at average annual interest rates of approximately 5.8% and 4.3%, respectively. During the three months ended March 31, 2023 and 2022, the Company incurred net interest expense of $13.1 million and $10.7 million, respectively. During the three months ended March 31, 2023 and 2022 , the Company recorded interest expense of $1.5 million and $3.4 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 and GHC Two, 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). |
Fair Value Measurements
Fair Value Measurements | 3 Months Ended |
Mar. 31, 2023 | |
Fair Value Disclosures [Abstract] | |
Fair Value Measurements | FAIR VALUE MEASUREMENTS The Company’s financial assets and liabilities measured at fair value on a recurring basis were as follows: As of March 31, 2023 (in thousands) Level 1 Level 2 Level 3 Total Assets Money market investments (1) $ — $ 2,249 $ — $ 2,249 Marketable equity securities (2) 603,543 — — 603,543 Other current investments (3) 8,020 4,816 — 12,836 Interest rate swaps (4) — 1,682 — 1,682 Total Financial Assets $ 611,563 $ 8,747 $ — $ 620,310 Liabilities Contingent consideration liabilities (5) $ — $ — $ 8,206 $ 8,206 Mandatorily redeemable noncontrolling interest (6) — — 32,309 32,309 Total Financial Liabilities $ — $ — $ 40,515 $ 40,515 As of December 31, 2022 (in thousands) Level 1 Level 2 Level 3 Total Assets Money market investments (1) $ — $ 7,686 $ — $ 7,686 Marketable equity securities (2) 609,921 — — 609,921 Other current investments (3) 7,471 5,016 — 12,487 Interest rate swaps (4) — 2,636 — 2,636 Total Financial Assets $ 617,392 $ 15,338 $ — $ 632,730 Liabilities Contingent consideration liabilities (5) $ — $ — $ 8,423 $ 8,423 Foreign exchange swap (7) — 333 — 333 Mandatorily redeemable noncontrolling interest (6) — — 30,845 30,845 Total Financial Liabilities $ — $ 333 $ 39,268 $ 39,601 ____________ (1) The Company’s money market investments are included in cash and cash equivalents and the value considers the liquidity of the counterparty. (2) The Company’s investments in marketable equity securities are held in common shares of U.S. corporations that are actively traded on U.S. stock exchanges. Price quotes for these shares are readily available. (3) Includes U.S. Government Securities, corporate bonds, mutual funds and time deposits. These investments are valued using a market approach based on the quoted market prices of the security or inputs that include quoted market prices for similar instruments and are classified as either Level 1 or Level 2 in the fair value hierarchy. (4) Included in Deferred Charges and Other Assets. The Company utilized a market approach model using the notional amount of the interest rate swap multiplied by the observable inputs of time to maturity and market interest rates. (5) 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, Black-Scholes model, 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) The fair value of the mandatorily redeemable noncontrolling interest is based on the fair value of the underlying subsidiaries owned by GHC One and GHC Two, 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) 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 tables provide 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, 2022 $ 8,423 $ 30,845 Acquisition of business 220 — Changes in fair value (1) — 1,468 Accretion of value included in net income (1) 315 — Settlements or distributions (752) (4) As of March 31, 2023 $ 8,206 $ 32,309 (in thousands) Contingent consideration liabilities Mandatorily redeemable noncontrolling interest As of December 31, 2021 $ 14,881 $ 13,661 Acquisition of business (3) — Changes in fair value (1) — 3,423 Accretion of value included in net income (1) 76 — Settlements or distributions — (53) As of March 31, 2022 $ 14,954 $ 17,031 ____________ (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 expense in the Company’s Condensed Consolidated Statements of Operations. During the three months ended March 31, 2023, the Company recorded long-lived asset impairment charges of $0.7 million. The remeasurement of the 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 long-lived assets and made estimates and assumptions regarding future cash flows and discount rates. During the three months ended March 31, 2023, the Company recorded gains of $1.8 million to equity securities that are accounted for as cost method investments based on observable transactions for identical or similar investments of the same issuer. |
Revenue from Contracts with Cus
Revenue from Contracts with Customers | 3 Months Ended |
Mar. 31, 2023 | |
Revenue from Contract with Customer [Abstract] | |
Revenue from Contracts with Customers | REVENUE FROM CONTRACTS WITH CUSTOMERS The Company generated 79% of its revenue from U.S. domestic sales for each of the three months ended March 31, 2023 and 2022. The remaining 21% of revenue was generated from non-U.S. sales for each of the three months ended March 31, 2023 and 2022. For the three months ended March 31, 2023, the Company recognized 55% of its revenue over time as control of the services and goods transferred to the customer, and the remaining 45% at a point in time, when the customer obtained control of the promised goods. For the three months ended March 31, 2022, the Company recognized 61% of its revenue over time, and the remaining 39% at a point in time. Contract Assets. As of March 31, 2023, the Company recognized a contract asset of $34.1 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 $323.1 million related to this contract over the next six years. As of December 31, 2022, the contract asset was $26.3 million. Deferred Revenue. The Company records deferred revenue when cash payments are received or due in advance of the Company’s performance, including amounts which are refundable. The following table presents the change in the Company’s deferred revenue balance: As of March 31, December 31, % (in thousands) Change Deferred revenue $ 377,050 $ 385,507 (2) In April 2020, GHG received $31.5 million under the expanded Medicare Accelerated and Advanced Payment Program modified by the Coronavirus Aid, Relief, and Economic Security Act (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. The advance has been recouped in full as of September 30, 2022. For the three months ended March 31, 2022, GHG recognized $6.4 million of the balance in revenue for claims submitted for eligible services. The majority of the change in the deferred revenue balance is related to the cyclical nature of services in the Kaplan international division. During the three months ended March 31, 2023, the Company recognized $183.7 million related to the Company’s deferred revenue balance as of December 31, 2022. Revenue allocated to remaining performance obligations represents deferred revenue amounts that will be recognized as revenue in future periods. As of March 31, 2023, 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 $6.8 million. Kaplan Supplemental Education expects to recognize 67% 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 2023 $ 31,647 $ 16,068 $ (19,637) $ 541 $ 28,619 The majority of other activity was related to currency translation adjustments for the three months ended March 31, 2023. |
Earnings Per Share
Earnings Per Share | 3 Months Ended |
Mar. 31, 2023 | |
Earnings Per Share [Abstract] | |
Earnings Per Share | EARNINGS PER SHARE The Company’s unvested restricted stock awards contain nonforfeitable rights to dividends and, therefore, are considered participating securities for purposes of computing earnings per share pursuant to the two-class method. The diluted earnings per share computed under the two-class method is lower than the diluted earnings per share computed under the treasury stock method, resulting in the presentation of the lower amount in diluted earnings per share. The computation of the earnings per share under the two-class method excludes the income attributable to the unvested restricted stock awards from the numerator and excludes the dilutive impact of those underlying shares from the denominator. The following reflects the Company’s net income and share data used in the basic and diluted earnings per share computations using the two-class method: Three Months Ended (in thousands, except per share amounts) 2023 2022 Numerator: Numerator for basic earnings per share: Net income attributable to Graham Holdings Company common stockholders $ 52,272 $ 95,624 Less: Dividends paid-common stock outstanding and unvested restricted shares (15,812) (15,497) Undistributed earnings 36,460 80,127 Percent allocated to common stockholders 99.35 % 99.35 % 36,225 79,611 Add: Dividends paid-common stock outstanding 15,711 15,397 Numerator for basic earnings per share $ 51,936 $ 95,008 Add: Additional undistributed earnings due to dilutive stock options 1 1 Numerator for diluted earnings per share $ 51,937 $ 95,009 Denominator: Denominator for basic earnings per share: Weighted average shares outstanding 4,759 4,871 Add: Effect of dilutive stock options 17 14 Denominator for diluted earnings per share 4,776 4,885 Graham Holdings Company Common Stockholders: Basic earnings per share $ 10.91 $ 19.50 Diluted earnings per share $ 10.88 $ 19.45 ____________ Earnings per share amounts may not recalculate due to rounding. Diluted earnings per share excludes the following weighted average potential common shares, as the effect would be antidilutive, as computed under the treasury stock method: Three Months Ended (in thousands) 2023 2022 Weighted average restricted stock 10 16 The diluted earnings per share amounts for the three months ended March 31, 2023 and March 31, 2022 exclude the effects of 105,000 stock options and contingently issuable shares outstanding as their inclusion would have been antidilutive due to a market condition. In the three months ended March 31, 2023 and 2022, the Company declared regular dividends totaling $3.30 and $3.16 per common share, respectively. |
Pension and Postretirement Plan
Pension and Postretirement Plans | 3 Months Ended |
Mar. 31, 2023 | |
Retirement Benefits, Description [Abstract] | |
Pension and Postretirement Plans | PENSION AND POSTRETIREMENT PLANS Defined Benefit Plans. The total benefit arising from the Company’s defined benefit pension plans consists of the following components: Three Months Ended (in thousands) 2023 2022 Service cost $ 9,243 $ 6,031 Interest cost 11,534 7,670 Expected return on assets (38,338) (41,963) Amortization of prior service cost 410 709 Recognized actuarial gain (10,140) (17,229) Net Periodic Benefit (27,291) (44,782) Special separation benefit expense 4,129 — Total Benefit $ (23,162) $ (44,782) In the first quarter of 2023, the Company recorded $4.1 million in expenses related to Separation Incentive Programs for certain Leaf Group and Code3 employees, which will be funded from the assets of the Company’s pension plans. The total cost arising from the Company’s Supplemental Executive Retirement Plan (SERP) consists of the following components: Three Months Ended (in thousands) 2023 2022 Service cost $ 148 $ 228 Interest cost 1,165 822 Amortization of prior service cost — 9 Recognized actuarial loss — 166 Net Periodic Cost $ 1,313 $ 1,225 Defined Benefit Plan Assets. The Company’s defined benefit pension obligations are funded by a portfolio made up of private investment funds, a U.S. stock index fund, and a relatively small number of stocks and high-quality fixed-income securities that are held by a third-party trustee. The assets of the Company’s pension plans were allocated as follows: As of March 31, December 31, U.S. equities 57 % 59 % Private investment funds 17 % 16 % International equities 12 % 11 % U.S. stock index fund 7 % 7 % U.S. fixed income 7 % 7 % 100 % 100 % The Company manages approximately 41% of the pension assets internally, of which the majority is invested in private investment funds with the remaining investments in Berkshire Hathaway stock, a U.S. stock index fund, and short-term fixed-income securities. The remaining 59% of plan assets are managed by two investment companies. The goal of the investment managers is to produce moderate long-term growth in the value of these assets, while protecting them against large decreases in value. Both investment managers may invest in a combination of equity and fixed-income securities and cash. The managers are not permitted to invest in securities of the Company or in alternative investments. One investment manager cannot invest more than 15% of the assets at the time of purchase in the stock of Alphabet and Berkshire Hathaway, and no more than 30% of the assets it manages in specified international exchanges at the time the investment is made. The other investment manager cannot invest more than 20% of the assets at the time of purchase in the stock of Berkshire Hathaway, and no more than 15% of the assets it manages in specified international exchanges at the time the investment is made, and no less than 10% of the assets could be invested in fixed-income securities. Excluding the exceptions noted above, the investment managers cannot invest more than 10% of the assets in the securities of any other single issuer, except for obligations of the U.S. Government, without receiving prior approval from the Plan administrator. In determining the expected rate of return on plan assets, the Company considers the relative weighting of plan assets, the historical performance of total plan assets and individual asset classes and economic and other indicators of future performance. In addition, the Company may consult with and consider the input of financial and other professionals in developing appropriate return benchmarks. The Company evaluated its defined benefit pension plan asset portfolio for the existence of significant concentrations (defined as greater than 10% of plan assets) of credit risk as of March 31, 2023. Types of concentrations that were evaluated include, but are not limited to, investment concentrations in a single entity, type of industry, foreign country and individual fund. At March 31, 2023, the pension plan held investments in one common stock and one private investment fund that exceeded 10% of total plan assets, valued at $876.6 million, or approximately 33% of total plan assets. At December 31, 2022, the pension plan held investments in one common stock and one private investment fund that exceeded 10% of total plan assets, valued at $842.6 million, or approximately 33% of total plan assets. Other Postretirement Plans. The total benefit arising from the Company’s other postretirement plans consists of the following components: Three Months Ended (in thousands) 2023 2022 Interest cost $ 22 $ 24 Amortization of prior service credit (1) (2) Recognized actuarial gain (626) (711) Net Periodic Benefit $ (605) $ (689) |
Other Non-Operating Income
Other Non-Operating Income | 3 Months Ended |
Mar. 31, 2023 | |
Other Nonoperating Income (Expense) [Abstract] | |
Other Non-Operating Income | OTHER NON-OPERATING INCOME A summary of non-operating income is as follows: Three Months Ended (in thousands) 2023 2022 Gain on a cost method investment $ 1,831 $ — Foreign currency loss, net (1,504) (1,047) Gain on sale of business 1,000 945 Gain on sale of cost method investments 785 1,075 Gain on sale of investments in affiliates 15 604 Other gain, net 956 1,299 Total Other Non-Operating Income $ 3,083 $ 2,876 The gain on cost method investment resulted 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 months ended March 31, 2023 and 2022 , the Company recorded contingent consideration gains of $1.0 million and $0.9 million, respectively, related to the disposition of Kaplan University (KU) in 2018. |
Accumulated Other Comprehensive
Accumulated Other Comprehensive Income (Loss) | 3 Months Ended |
Mar. 31, 2023 | |
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 March 31 2023 2022 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 $ 8,994 $ — $ 8,994 $ (1,738) $ — $ (1,738) Pension and other postretirement plans: Amortization of net prior service cost included in net income 409 (105) 304 716 (184) 532 Amortization of net actuarial gain included in net income (10,766) 2,769 (7,997) (17,774) 4,581 (13,193) (10,357) 2,664 (7,693) (17,058) 4,397 (12,661) Cash flow hedges: (Loss) gain for the period (930) 214 (716) 1,642 (378) 1,264 Other Comprehensive Income (Loss) $ (2,293) $ 2,878 $ 585 $ (17,154) $ 4,019 $ (13,135) 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, 2022 $ (54,638) $ 388,591 $ 2,198 $ 336,151 Other comprehensive income (loss) before reclassifications 8,994 — (542) 8,452 Net amount reclassified from accumulated other comprehensive income — (7,693) (174) (7,867) Net other comprehensive income (loss) 8,994 (7,693) (716) 585 Balance as of March 31, 2023 $ (45,644) $ 380,898 $ 1,482 $ 336,736 The amounts and line items of reclassifications out of Accumulated Other Comprehensive Income (Loss) are as follows: Three Months Ended Affected Line Item in the Condensed Consolidated Statements of Operations (in thousands) 2023 2022 Pension and Other Postretirement Plans: Amortization of net prior service cost $ 409 $ 716 (1) Amortization of net actuarial gain (10,766) (17,774) (1) (10,357) (17,058) Before tax 2,664 4,397 Provision for Income Taxes (7,693) (12,661) Net of Tax Cash Flow Hedges (174) 184 Interest expense Total reclassification for the period $ (7,867) $ (12,477) 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 11) and are included in non-operating pension and postretirement benefit income in the Company’s Condensed Consolidated Statements of Operations. |
Contingencies
Contingencies | 3 Months Ended |
Mar. 31, 2023 | |
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 $15 million. In 2015, Kaplan sold substantially all of the assets of the KHE 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. On May 6, 2021, Kaplan received a notice from the Department of Education (ED) that it would be conducting a fact-finding process pursuant to the borrower defense to repayment (BDTR) regulations to determine the validity of more than 800 BDTR claims and a request for documents related to several of Kaplan’s previously owned schools. Beginning in July 2021, Kaplan started receiving the claims and related information requests. In total, Kaplan received 1,449 borrower defense applications that seek discharge of approximately $35 million in loans, excluding interest. Most claims received are from former KU students. The ED’s process for adjudicating these claims is subject to the borrower defense regulations including those finalized in 2022 and effective July 1, 2023, but it is not clear to what extent the ED will exclude claims based on the underlying statutes of limitations, evidence provided by Kaplan, or any prior investigation related to schools attended by the student applicants. Compared to the previous rule, the new rule in part, expands actions that can give rise to claims for discharge; provides that the borrower’s claim will be presumed true if the institution does not provide any responsive evidence; provides an easier process for group claims; and relies on current program review penalty hearing processes for discharge recoupment. Under the rule, the recoupment process applies only to loans first disbursed after July 1, 2023; however, the discharge process and standards apply to any pending application regardless of loan date. Kaplan believes it has defenses that would bar any student discharge or school liability including that the claims are barred by the applicable statute of limitations, unproven, incomplete and fail to meet regulatory filing requirements. Kaplan expects to vigorously defend any attempt by the ED to hold Kaplan liable for any ultimate student discharges and has responded to all claims with documentary and narrative evidence to refute the allegations, demonstrate their lack of merit, and support the denial of all such claims by the ED. If the claims are successful, the ED may seek reimbursement for the amount discharged from Kaplan. If the ED initiates a reimbursement action against Kaplan following approval of former students’ BDTR applications, Kaplan may be subject to significant liability. In November 2022 the Northern District of California approved the settlement agreement in the lawsuit Sweet v. Cardona . The Plaintiffs in that lawsuit claimed that the ED failed to properly consider and decide pending BDTR claims. As part of the settlement, the ED agreed to discharge loans of borrowers who attended 150 specific schools, including all schools formerly owned by Kaplan, and who had BDTR claims pending as of the June 22, 2022 settlement execution date. This discharge will likely cover each of the 1,449 applications the ED sent to Kaplan and to which Kaplan responded. The ED and the Court made clear that these discharges as part of a settlement are not determinations that the pending BDTR claims are valid and the fact of the settlement discharge cannot be used as evidence of any determination of wrongdoing by the institutions. However, despite the fact that the loans are discharged per the settlement, the ED may still attempt to separately adjudicate the associated BDTR claims and follow the regulatory process for seeking recoupment from the institutions for such claims. On October 27, 2022, the ED released a final rule that among other things, changes the Title IV definition of “Nonprofit” institution to generally exclude from that definition any institution that is an obligor on a debt owed to a former owner of the institution or that maintains a revenue-based service agreement with a former owner of the institution. The final rule has an effective date of July 1, 2023 and could subject Purdue Global to additional regulatory requirements. |
Business Segments
Business Segments | 3 Months Ended |
Mar. 31, 2023 | |
Segment Reporting [Abstract] | |
Business Segments | BUSINESS SEGMENTS The Company has seven reportable segments: Kaplan International, Kaplan Higher Education, Kaplan Supplemental Education, Television Broadcasting, Manufacturing, Healthcare and Automotive. The following tables summarize the financial information related to each of the Company’s business segments: Three Months Ended (in thousands) 2023 2022 Operating Revenues Education $ 378,041 $ 358,012 Television broadcasting 112,877 123,419 Manufacturing 114,584 115,940 Healthcare 102,059 67,255 Automotive 232,561 150,967 Other businesses 92,008 99,617 Corporate office — — Intersegment elimination (584) (489) $ 1,031,546 $ 914,721 Income (Loss) from Operations before Amortization of Intangible Assets and Impairment of Long-Lived Assets Education $ 27,456 $ 24,558 Television broadcasting 29,945 41,258 Manufacturing 12,190 15,138 Healthcare 3,890 7,288 Automotive 10,843 7,078 Other businesses (27,906) (27,430) Corporate office (14,073) (13,007) $ 42,345 $ 54,883 Amortization of Intangible Assets and Impairment of Long-Lived Assets Education $ 4,416 $ 4,146 Television broadcasting 1,362 1,360 Manufacturing 4,862 5,163 Healthcare 954 929 Automotive — — Other businesses 3,095 3,314 Corporate office — — $ 14,689 $ 14,912 Income (Loss) from Operations Education $ 23,040 $ 20,412 Television broadcasting 28,583 39,898 Manufacturing 7,328 9,975 Healthcare 2,936 6,359 Automotive 10,843 7,078 Other businesses (31,001) (30,744) Corporate office (14,073) (13,007) $ 27,656 $ 39,971 Equity in Earnings of Affiliates, Net 4,661 2,604 Interest Expense, Net (13,090) (10,702) Non-Operating Pension and Postretirement Benefit Income, Net 31,845 50,505 Gain on Marketable Equity Securities, Net 18,022 46,912 Other Income, Net 3,083 2,876 Income Before Income Taxes $ 72,177 $ 132,166 Three Months Ended (in thousands) 2023 2022 Depreciation of Property, Plant and Equipment Education $ 8,968 $ 8,505 Television broadcasting 3,036 3,289 Manufacturing 2,282 2,428 Healthcare 1,104 410 Automotive 1,113 777 Other businesses 3,369 3,915 Corporate office 153 151 $ 20,025 $ 19,475 Pension Service Cost Education $ 2,198 $ 2,536 Television broadcasting 860 926 Manufacturing 275 328 Healthcare 4,357 186 Automotive 5 6 Other businesses 572 520 Corporate office 976 1,529 $ 9,243 $ 6,031 Asset information for the Company’s business segments is as follows: As of (in thousands) March 31, 2023 December 31, 2022 Identifiable Assets Education $ 1,952,768 $ 1,987,042 Television broadcasting 424,185 431,084 Manufacturing 488,192 486,487 Healthcare 255,542 249,845 Automotive 440,036 427,221 Other businesses 445,409 475,583 Corporate office 66,087 70,567 $ 4,072,219 $ 4,127,829 Investments in Marketable Equity Securities 603,543 609,921 Investments in Affiliates 194,960 186,419 Prepaid Pension Cost 1,671,477 1,658,046 Total Assets $ 6,542,199 $ 6,582,215 The Company’s education division comprises the following operating segments: Three Months Ended (in thousands) 2023 2022 Operating Revenues Kaplan international $ 227,076 $ 204,513 Higher education 76,345 75,808 Supplemental education 73,587 76,304 Kaplan corporate and other 5,375 4,345 Intersegment elimination (4,342) (2,958) $ 378,041 $ 358,012 Income (Loss) From Operations before Amortization of Intangible Assets and Impairment of Long-Lived Assets Kaplan international $ 21,301 $ 20,564 Higher education 6,661 5,037 Supplemental education 3,751 3,371 Kaplan corporate and other (4,416) (4,433) Intersegment elimination 159 19 $ 27,456 $ 24,558 Amortization of Intangible Assets $ 3,939 $ 4,146 Impairment of Long-Lived Assets $ 477 $ — Income (Loss) from Operations Kaplan international $ 21,301 $ 20,564 Higher education 6,661 5,037 Supplemental education 3,751 3,371 Kaplan corporate and other (8,832) (8,579) Intersegment elimination 159 19 $ 23,040 $ 20,412 Depreciation of Property, Plant and Equipment Kaplan international $ 6,330 $ 5,755 Higher education 996 1,020 Supplemental education 1,509 1,639 Kaplan corporate and other 133 91 $ 8,968 $ 8,505 Pension Service Cost Kaplan international $ 80 $ 72 Higher education 922 1,081 Supplemental education 1,024 1,182 Kaplan corporate and other 172 201 $ 2,198 $ 2,536 Asset information for the Company’s education division is as follows: As of (in thousands) March 31, 2023 December 31, 2022 Identifiable Assets Kaplan international $ 1,449,063 $ 1,479,833 Higher education 182,720 174,033 Supplemental education 256,050 268,499 Kaplan corporate and other 64,935 64,677 $ 1,952,768 $ 1,987,042 |
Organization, Basis of Presen_2
Organization, Basis of Presentation And Recent Accounting Pronouncements (Policies) | 3 Months Ended |
Mar. 31, 2023 | |
Organization, Consolidation and Presentation of Financial Statements [Abstract] | |
Basis of Presentation | Basis of Presentation – The accompanying condensed consolidated financial statements have been prepared in accordance with: (i) generally accepted accounting principles in the United States of America (GAAP) for interim financial information; (ii) the instructions to Form 10-Q; and (iii) the guidance of Rule 10-01 of Regulation S-X under the Securities and Exchange Act of 1934, as amended, for financial statements required to be filed with the Securities and Exchange Commission (SEC). They include the assets, liabilities, results of operations and cash flows of the Company, including its domestic and foreign subsidiaries that are more than 50% owned or otherwise controlled by the Company. As permitted under such rules, certain notes and other financial information normally required by GAAP have been condensed or omitted. Management believes the accompanying condensed consolidated financial statements reflect all normal and recurring adjustments necessary for a fair statement of the Company’s financial position, results of operations, and cash flows as of and for the periods presented herein. The Company’s results of operations for the three months ended March 31, 2023 and 2022 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, 2022. The year-end condensed consolidated balance sheet data was derived from audited financial statements, but does not include all disclosures required by GAAP. |
Use of Estimates in the Preparation of the Condensed Consolidated Financial Statements | Use of Estimates in the Preparation of the Condensed Consolidated Financial Statements – The preparation of the condensed consolidated financial statements in conformity with GAAP requires management to make estimates and judgments that affect the amounts reported herein. Management bases its estimates and assumptions on historical experience and on various other factors that are believed to be reasonable under the circumstances. Due to the inherent uncertainty involved in making estimates, actual results reported in future periods may be affected by changes in those estimates. |
Recently Adopted and Issued Accounting Pronouncements | Recently Adopted and Issued Accounting Pronouncements – In September 2022, the Financial Accounting Standards Board issued new guidance that requires a buyer in a supplier finance program to disclose certain qualitative and quantitative information about the program’s nature, activity during the period, changes from period to period, and potential magnitude. The standard was adopted by the Company in the first quarter of 2023 and did not have a significant impact on its Condensed Consolidated Financial Statements. |
Acquisitions and Dispositions_2
Acquisitions and Dispositions of Businesses (Tables) | 3 Months Ended |
Mar. 31, 2023 | |
Acquisitions And Dispositions [Abstract] | |
Schedule of assets acquired and liabilities assumed | The aggregate purchase price of the 2022 acquisitions was allocated as follows, based on acquisition date fair values to the following assets and liabilities: Purchase Price Allocation Year Ended (in thousands) December 31, 2022 Accounts receivable $ 3,172 Inventory 21,278 Property, plant and equipment 36,255 Lease right-of-use assets 4,773 Goodwill 56,163 Indefinite-lived intangible assets 41,800 Amortized intangible assets 1,200 Other assets 481 Deferred income taxes 241 Floor plan payables (10,908) Other liabilities (3,798) Current and noncurrent lease liabilities (5,865) Redeemable noncontrolling interest (2,164) Noncontrolling interest (512) Aggregate purchase price, net of cash acquired $ 142,116 |
Acquisition Pro Forma Financial Information | The acquired companies were consolidated into the Company’s financial statements starting on their respective acquisition dates. The following unaudited pro forma information includes the 2022 acquisitions as if they occurred at the beginning of 2021: Three Months Ended (in thousands) 2022 Operating revenues $ 998,193 Net income 100,676 |
Investments (Tables)
Investments (Tables) | 3 Months Ended |
Mar. 31, 2023 | |
Investments [Abstract] | |
Investments in Marketable Equity Securities | Investments in marketable equity securities consist of the following: As of March 31, December 31, (in thousands) Total cost $ 234,157 $ 270,764 Gross unrealized gains 373,842 363,147 Gross unrealized losses (4,456) (23,990) Total Fair Value $ 603,543 $ 609,921 |
Gain on Marketable Equity Securities | The net gain on marketable equity securities comprised the following: Three Months Ended (in thousands) 2023 2022 Gain on marketable equity securities, net $ 18,022 $ 46,912 Less: Net losses in earnings from marketable equity securities sold 3,657 5,767 Net unrealized gains in earnings from marketable equity securities still held at the end of the period $ 21,679 $ 52,679 |
Accounts Receivable, Accounts_2
Accounts Receivable, Accounts Payable and Accrued Liabilities (Tables) | 3 Months Ended |
Mar. 31, 2023 | |
Accounts Receivable Accounts Payable And Accrued Liabilities [Abstract] | |
Schedule of Accounts Receivable | Accounts receivable consist of the following: As of March 31, December 31, (in thousands) Receivables from contracts with customers, less estimated credit losses of $22,935 and $21,387 $ 478,726 $ 533,622 Other receivables 28,788 27,157 $ 507,514 $ 560,779 |
Schedule of Accounts Payable and Accrued Liabilities | Accounts payable and accrued liabilities consist of the following: As of March 31, December 31, (in thousands) Accounts payable $ 133,805 $ 136,186 Accrued compensation and related benefits 112,378 149,823 Other accrued liabilities 290,776 276,996 $ 536,959 $ 563,005 |
Inventories, Contracts in Pro_2
Inventories, Contracts in Progress and Vehicle Floor Plan Payable (Tables) | 3 Months Ended |
Mar. 31, 2023 | |
Inventory, Net of Allowances, Customer Advances and Progress Billings [Abstract] | |
Schedule of Inventories and Contracts in Progress | Inventories and contracts in progress consist of the following: As of March 31, December 31, (in thousands) Raw materials $ 67,950 $ 68,494 Work-in-process 15,141 15,718 Finished goods 160,168 140,548 Contracts in progress 2,961 2,051 $ 246,220 $ 226,811 |
Goodwill and Other Intangible_2
Goodwill and Other Intangible Assets (Tables) | 3 Months Ended |
Mar. 31, 2023 | |
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 Automotive Other Total Balance as of December 31, 2022 Goodwill $ 1,145,502 $ 190,815 $ 234,993 $ 135,870 $ 84,697 $ 251,216 $ 2,043,093 Accumulated impairment losses (331,151) — (34,302) — — (116,687) (482,140) 814,351 190,815 200,691 135,870 84,697 134,529 1,560,953 Acquisitions — — — 385 — — 385 Foreign currency exchange rate changes 6,256 — — — — — 6,256 Balance as of March 31, 2023 Goodwill 1,151,758 190,815 234,993 136,255 84,697 251,216 2,049,734 Accumulated impairment losses (331,151) — (34,302) — — (116,687) (482,140) $ 820,607 $ 190,815 $ 200,691 $ 136,255 $ 84,697 $ 134,529 $ 1,567,594 |
Other Intangible Assets | Other intangible assets consist of the following: As of March 31, 2023 As of December 31, 2022 (in thousands) Useful Life Gross Accumulated Net Carrying Gross Accumulated Net Amortized Intangible Assets Student and customer relationships 2–10 years $ 298,022 $ 236,486 $ 61,536 $ 297,766 $ 230,429 $ 67,337 Trade names and trademarks 2–15 years 148,286 84,833 63,453 148,102 81,078 67,024 Network affiliation agreements 10 years 17,400 11,112 6,288 17,400 10,367 7,033 Databases and technology 3–6 years 36,251 33,714 2,537 36,216 32,219 3,997 Noncompete agreements 2–5 years 20 16 4 1,000 995 5 Other 1–8 years 43,644 29,909 13,735 43,644 27,618 16,026 $ 543,623 $ 396,070 $ 147,553 $ 544,128 $ 382,706 $ 161,422 Indefinite-Lived Intangible Assets Franchise agreements $ 85,858 $ 85,858 Trade names and trademarks 83,009 81,905 FCC licenses 11,000 11,000 Licensure and accreditation 150 150 Other 21 21 $ 180,038 $ 178,934 |
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, 2022 Goodwill $ 579,561 $ 174,564 $ 391,377 $ 1,145,502 Accumulated impairment losses — (111,324) (219,827) (331,151) 579,561 63,240 171,550 814,351 Foreign currency exchange rate changes 6,252 — 4 6,256 Balance as of March 31, 2023 Goodwill 585,813 174,564 391,381 1,151,758 Accumulated impairment losses — (111,324) (219,827) (331,151) $ 585,813 $ 63,240 $ 171,554 $ 820,607 |
Debt (Tables)
Debt (Tables) | 3 Months Ended |
Mar. 31, 2023 | |
Debt Disclosure [Abstract] | |
Components of Debt | The Company’s borrowings consist of the following: As of (in thousands) Maturities Stated Interest Rate Effective Interest Rate March 31, December 31, Unsecured notes (1) 2026 5.75% 5.75% $ 397,725 $ 397,548 Revolving credit facility 2027 4.80% - 8.38% 5.81% 168,766 200,236 Truist Bank commercial note (2) 2031 6.10% - 6.37% 6.33% 23,276 23,522 Truist Bank commercial note 2032 6.38% - 6.72% 6.54% 63,483 66,513 Truist Bank commercial note (3) 2032 6.13% - 6.47% 6.40% 26,211 26,548 Pinnacle Bank term loan 2024 4.15% 4.18% 8,152 8,433 Other indebtedness 2025 - 2030 0.00% - 16.00% 3,506 3,560 Total Debt 691,119 726,360 Less: current portion (123,018) (155,813) Total Long-Term Debt $ 568,101 $ 570,547 ___________ _ (1) The carrying value is net of $2.3 million and $2.5 million of unamortized debt issuance costs as of March 31, 2023 and December 31, 2022, respectively . (2) The carrying value is net of $0.1 million of unamortized debt issuance costs as of March 31, 2023 and December 31, 2022. (3) The carrying value is net of $0.1 million of unamortized debt issuance costs as of March 31, 2023 and December 31, 2022. |
Fair Value Measurements (Tables
Fair Value Measurements (Tables) | 3 Months Ended |
Mar. 31, 2023 | |
Fair Value Disclosures [Abstract] | |
Schedule of Fair Value, Assets and Liabilities Measured on Recurring Basis | The Company’s financial assets and liabilities measured at fair value on a recurring basis were as follows: As of March 31, 2023 (in thousands) Level 1 Level 2 Level 3 Total Assets Money market investments (1) $ — $ 2,249 $ — $ 2,249 Marketable equity securities (2) 603,543 — — 603,543 Other current investments (3) 8,020 4,816 — 12,836 Interest rate swaps (4) — 1,682 — 1,682 Total Financial Assets $ 611,563 $ 8,747 $ — $ 620,310 Liabilities Contingent consideration liabilities (5) $ — $ — $ 8,206 $ 8,206 Mandatorily redeemable noncontrolling interest (6) — — 32,309 32,309 Total Financial Liabilities $ — $ — $ 40,515 $ 40,515 As of December 31, 2022 (in thousands) Level 1 Level 2 Level 3 Total Assets Money market investments (1) $ — $ 7,686 $ — $ 7,686 Marketable equity securities (2) 609,921 — — 609,921 Other current investments (3) 7,471 5,016 — 12,487 Interest rate swaps (4) — 2,636 — 2,636 Total Financial Assets $ 617,392 $ 15,338 $ — $ 632,730 Liabilities Contingent consideration liabilities (5) $ — $ — $ 8,423 $ 8,423 Foreign exchange swap (7) — 333 — 333 Mandatorily redeemable noncontrolling interest (6) — — 30,845 30,845 Total Financial Liabilities $ — $ 333 $ 39,268 $ 39,601 ____________ (1) The Company’s money market investments are included in cash and cash equivalents and the value considers the liquidity of the counterparty. (2) The Company’s investments in marketable equity securities are held in common shares of U.S. corporations that are actively traded on U.S. stock exchanges. Price quotes for these shares are readily available. (3) Includes U.S. Government Securities, corporate bonds, mutual funds and time deposits. These investments are valued using a market approach based on the quoted market prices of the security or inputs that include quoted market prices for similar instruments and are classified as either Level 1 or Level 2 in the fair value hierarchy. (4) Included in Deferred Charges and Other Assets. The Company utilized a market approach model using the notional amount of the interest rate swap multiplied by the observable inputs of time to maturity and market interest rates. (5) 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, Black-Scholes model, 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) The fair value of the mandatorily redeemable noncontrolling interest is based on the fair value of the underlying subsidiaries owned by GHC One and GHC Two, 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) 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 tables provide 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, 2022 $ 8,423 $ 30,845 Acquisition of business 220 — Changes in fair value (1) — 1,468 Accretion of value included in net income (1) 315 — Settlements or distributions (752) (4) As of March 31, 2023 $ 8,206 $ 32,309 (in thousands) Contingent consideration liabilities Mandatorily redeemable noncontrolling interest As of December 31, 2021 $ 14,881 $ 13,661 Acquisition of business (3) — Changes in fair value (1) — 3,423 Accretion of value included in net income (1) 76 — Settlements or distributions — (53) As of March 31, 2022 $ 14,954 $ 17,031 ____________ (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 expense in the Company’s Condensed Consolidated Statements of Operations. |
Revenue from Contracts with C_2
Revenue from Contracts with Customers (Tables) | 3 Months Ended |
Mar. 31, 2023 | |
Revenue from Contract with Customer [Abstract] | |
Contract with Customer, Liability | The following table presents the change in the Company’s deferred revenue balance: As of March 31, December 31, % (in thousands) Change Deferred revenue $ 377,050 $ 385,507 (2) |
Capitalized Contract Cost | The following table presents changes in the Company’s costs to obtain a contract asset: (in thousands) Balance at Costs associated with new contracts Less: Costs amortized during the period Other Balance 2023 $ 31,647 $ 16,068 $ (19,637) $ 541 $ 28,619 |
Earnings Per Share (Tables)
Earnings Per Share (Tables) | 3 Months Ended |
Mar. 31, 2023 | |
Earnings Per Share [Abstract] | |
Summary of Earnings Per Share, Basic and Diluted | The following reflects the Company’s net income and share data used in the basic and diluted earnings per share computations using the two-class method: Three Months Ended (in thousands, except per share amounts) 2023 2022 Numerator: Numerator for basic earnings per share: Net income attributable to Graham Holdings Company common stockholders $ 52,272 $ 95,624 Less: Dividends paid-common stock outstanding and unvested restricted shares (15,812) (15,497) Undistributed earnings 36,460 80,127 Percent allocated to common stockholders 99.35 % 99.35 % 36,225 79,611 Add: Dividends paid-common stock outstanding 15,711 15,397 Numerator for basic earnings per share $ 51,936 $ 95,008 Add: Additional undistributed earnings due to dilutive stock options 1 1 Numerator for diluted earnings per share $ 51,937 $ 95,009 Denominator: Denominator for basic earnings per share: Weighted average shares outstanding 4,759 4,871 Add: Effect of dilutive stock options 17 14 Denominator for diluted earnings per share 4,776 4,885 Graham Holdings Company Common Stockholders: Basic earnings per share $ 10.91 $ 19.50 Diluted earnings per share $ 10.88 $ 19.45 ____________ Earnings per share amounts may not recalculate due to rounding. |
Antidilutive Weighted Average Restricted Stock and Options | Diluted earnings per share excludes the following weighted average potential common shares, as the effect would be antidilutive, as computed under the treasury stock method: Three Months Ended (in thousands) 2023 2022 Weighted average restricted stock 10 16 |
Pension and Postretirement Pl_2
Pension and Postretirement Plans (Tables) | 3 Months Ended |
Mar. 31, 2023 | |
Defined Benefit Pension Plan [Member] | |
Schedule of Net Benefit Costs | The total benefit arising from the Company’s defined benefit pension plans consists of the following components: Three Months Ended (in thousands) 2023 2022 Service cost $ 9,243 $ 6,031 Interest cost 11,534 7,670 Expected return on assets (38,338) (41,963) Amortization of prior service cost 410 709 Recognized actuarial gain (10,140) (17,229) Net Periodic Benefit (27,291) (44,782) Special separation benefit expense 4,129 — Total Benefit $ (23,162) $ (44,782) |
Schedule of Allocation of Plan Assets | The assets of the Company’s pension plans were allocated as follows: As of March 31, December 31, U.S. equities 57 % 59 % Private investment funds 17 % 16 % International equities 12 % 11 % U.S. stock index fund 7 % 7 % U.S. fixed income 7 % 7 % 100 % 100 % |
Supplemental Executive Retirement Plan (SERP) [Member] | |
Schedule of Net Benefit Costs | The total cost arising from the Company’s Supplemental Executive Retirement Plan (SERP) consists of the following components: Three Months Ended (in thousands) 2023 2022 Service cost $ 148 $ 228 Interest cost 1,165 822 Amortization of prior service cost — 9 Recognized actuarial loss — 166 Net Periodic Cost $ 1,313 $ 1,225 |
Other Postretirement Benefit Plan, Defined Benefit [Member] | |
Schedule of Net Benefit Costs | Other Postretirement Plans. The total benefit arising from the Company’s other postretirement plans consists of the following components: Three Months Ended (in thousands) 2023 2022 Interest cost $ 22 $ 24 Amortization of prior service credit (1) (2) Recognized actuarial gain (626) (711) Net Periodic Benefit $ (605) $ (689) |
Other Non-Operating Income (Tab
Other Non-Operating Income (Tables) | 3 Months Ended |
Mar. 31, 2023 | |
Other Nonoperating Income (Expense) [Abstract] | |
Summary of other non-operating income | A summary of non-operating income is as follows: Three Months Ended (in thousands) 2023 2022 Gain on a cost method investment $ 1,831 $ — Foreign currency loss, net (1,504) (1,047) Gain on sale of business 1,000 945 Gain on sale of cost method investments 785 1,075 Gain on sale of investments in affiliates 15 604 Other gain, net 956 1,299 Total Other Non-Operating Income $ 3,083 $ 2,876 |
Accumulated Other Comprehensi_2
Accumulated Other Comprehensive Income (Loss) (Tables) | 3 Months Ended |
Mar. 31, 2023 | |
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 March 31 2023 2022 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 $ 8,994 $ — $ 8,994 $ (1,738) $ — $ (1,738) Pension and other postretirement plans: Amortization of net prior service cost included in net income 409 (105) 304 716 (184) 532 Amortization of net actuarial gain included in net income (10,766) 2,769 (7,997) (17,774) 4,581 (13,193) (10,357) 2,664 (7,693) (17,058) 4,397 (12,661) Cash flow hedges: (Loss) gain for the period (930) 214 (716) 1,642 (378) 1,264 Other Comprehensive Income (Loss) $ (2,293) $ 2,878 $ 585 $ (17,154) $ 4,019 $ (13,135) |
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, 2022 $ (54,638) $ 388,591 $ 2,198 $ 336,151 Other comprehensive income (loss) before reclassifications 8,994 — (542) 8,452 Net amount reclassified from accumulated other comprehensive income — (7,693) (174) (7,867) Net other comprehensive income (loss) 8,994 (7,693) (716) 585 Balance as of March 31, 2023 $ (45,644) $ 380,898 $ 1,482 $ 336,736 |
Summary of Amounts and Line Items of Reclassifications Out of Accumulated Other Comprehensive Income (Loss) | The amounts and line items of reclassifications out of Accumulated Other Comprehensive Income (Loss) are as follows: Three Months Ended Affected Line Item in the Condensed Consolidated Statements of Operations (in thousands) 2023 2022 Pension and Other Postretirement Plans: Amortization of net prior service cost $ 409 $ 716 (1) Amortization of net actuarial gain (10,766) (17,774) (1) (10,357) (17,058) Before tax 2,664 4,397 Provision for Income Taxes (7,693) (12,661) Net of Tax Cash Flow Hedges (174) 184 Interest expense Total reclassification for the period $ (7,867) $ (12,477) 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 11) and are included in non-operating pension and postretirement benefit income in the Company’s Condensed Consolidated Statements of Operations. |
Business Segments (Tables)
Business Segments (Tables) | 3 Months Ended |
Mar. 31, 2023 | |
Segment Reporting Information [Line Items] | |
Summary of Segment Reporting Information, by Operating Segment | The following tables summarize the financial information related to each of the Company’s business segments: Three Months Ended (in thousands) 2023 2022 Operating Revenues Education $ 378,041 $ 358,012 Television broadcasting 112,877 123,419 Manufacturing 114,584 115,940 Healthcare 102,059 67,255 Automotive 232,561 150,967 Other businesses 92,008 99,617 Corporate office — — Intersegment elimination (584) (489) $ 1,031,546 $ 914,721 Income (Loss) from Operations before Amortization of Intangible Assets and Impairment of Long-Lived Assets Education $ 27,456 $ 24,558 Television broadcasting 29,945 41,258 Manufacturing 12,190 15,138 Healthcare 3,890 7,288 Automotive 10,843 7,078 Other businesses (27,906) (27,430) Corporate office (14,073) (13,007) $ 42,345 $ 54,883 Amortization of Intangible Assets and Impairment of Long-Lived Assets Education $ 4,416 $ 4,146 Television broadcasting 1,362 1,360 Manufacturing 4,862 5,163 Healthcare 954 929 Automotive — — Other businesses 3,095 3,314 Corporate office — — $ 14,689 $ 14,912 Income (Loss) from Operations Education $ 23,040 $ 20,412 Television broadcasting 28,583 39,898 Manufacturing 7,328 9,975 Healthcare 2,936 6,359 Automotive 10,843 7,078 Other businesses (31,001) (30,744) Corporate office (14,073) (13,007) $ 27,656 $ 39,971 Equity in Earnings of Affiliates, Net 4,661 2,604 Interest Expense, Net (13,090) (10,702) Non-Operating Pension and Postretirement Benefit Income, Net 31,845 50,505 Gain on Marketable Equity Securities, Net 18,022 46,912 Other Income, Net 3,083 2,876 Income Before Income Taxes $ 72,177 $ 132,166 Three Months Ended (in thousands) 2023 2022 Depreciation of Property, Plant and Equipment Education $ 8,968 $ 8,505 Television broadcasting 3,036 3,289 Manufacturing 2,282 2,428 Healthcare 1,104 410 Automotive 1,113 777 Other businesses 3,369 3,915 Corporate office 153 151 $ 20,025 $ 19,475 Pension Service Cost Education $ 2,198 $ 2,536 Television broadcasting 860 926 Manufacturing 275 328 Healthcare 4,357 186 Automotive 5 6 Other businesses 572 520 Corporate office 976 1,529 $ 9,243 $ 6,031 Asset information for the Company’s business segments is as follows: As of (in thousands) March 31, 2023 December 31, 2022 Identifiable Assets Education $ 1,952,768 $ 1,987,042 Television broadcasting 424,185 431,084 Manufacturing 488,192 486,487 Healthcare 255,542 249,845 Automotive 440,036 427,221 Other businesses 445,409 475,583 Corporate office 66,087 70,567 $ 4,072,219 $ 4,127,829 Investments in Marketable Equity Securities 603,543 609,921 Investments in Affiliates 194,960 186,419 Prepaid Pension Cost 1,671,477 1,658,046 Total Assets $ 6,542,199 $ 6,582,215 |
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 (in thousands) 2023 2022 Operating Revenues Kaplan international $ 227,076 $ 204,513 Higher education 76,345 75,808 Supplemental education 73,587 76,304 Kaplan corporate and other 5,375 4,345 Intersegment elimination (4,342) (2,958) $ 378,041 $ 358,012 Income (Loss) From Operations before Amortization of Intangible Assets and Impairment of Long-Lived Assets Kaplan international $ 21,301 $ 20,564 Higher education 6,661 5,037 Supplemental education 3,751 3,371 Kaplan corporate and other (4,416) (4,433) Intersegment elimination 159 19 $ 27,456 $ 24,558 Amortization of Intangible Assets $ 3,939 $ 4,146 Impairment of Long-Lived Assets $ 477 $ — Income (Loss) from Operations Kaplan international $ 21,301 $ 20,564 Higher education 6,661 5,037 Supplemental education 3,751 3,371 Kaplan corporate and other (8,832) (8,579) Intersegment elimination 159 19 $ 23,040 $ 20,412 Depreciation of Property, Plant and Equipment Kaplan international $ 6,330 $ 5,755 Higher education 996 1,020 Supplemental education 1,509 1,639 Kaplan corporate and other 133 91 $ 8,968 $ 8,505 Pension Service Cost Kaplan international $ 80 $ 72 Higher education 922 1,081 Supplemental education 1,024 1,182 Kaplan corporate and other 172 201 $ 2,198 $ 2,536 Asset information for the Company’s education division is as follows: As of (in thousands) March 31, 2023 December 31, 2022 Identifiable Assets Kaplan international $ 1,449,063 $ 1,479,833 Higher education 182,720 174,033 Supplemental education 256,050 268,499 Kaplan corporate and other 64,935 64,677 $ 1,952,768 $ 1,987,042 |
Organization, Basis of Presen_3
Organization, Basis of Presentation and Recent Accounting Pronouncements (Organization and Basis of Presentation) (Narrative) (Details) | Mar. 31, 2023 automotiveDealership televisionStation |
Television Broadcasting [Member] | |
Number of television broadcast stations | televisionStation | 7 |
Automotive [Member] | |
Number of Automotive Dealerships Owned | automotiveDealership | 6 |
Acquisitions and Dispositions_3
Acquisitions and Dispositions of Businesses (Acquisitions) (Narrative) (Details) $ in Millions | 1 Months Ended | 12 Months Ended | ||||||
Jan. 31, 2023 business | Nov. 30, 2022 USD ($) | Aug. 31, 2022 business | May 31, 2022 business | Dec. 31, 2022 USD ($) business | Mar. 31, 2023 USD ($) | Jul. 31, 2022 | Jul. 05, 2022 USD ($) store | |
Business Acquisition [Line Items] | ||||||||
Acquisition purchase price | $ 143.2 | |||||||
Goodwill expected to be deductible for income tax purposes | $ 38.5 | |||||||
Number of businesses acquired | business | 7 | |||||||
Automotive [Member] | ||||||||
Business Acquisition [Line Items] | ||||||||
Floor plan payables | $ 76.9 | |||||||
Number of businesses acquired | business | 2 | |||||||
Graham Healthcare Group [Member] | ||||||||
Business Acquisition [Line Items] | ||||||||
Number of businesses acquired | business | 2 | 2 | 2 | 5 | ||||
CSI Pharmacy Holding Company, LLC | ||||||||
Business Acquisition [Line Items] | ||||||||
Noncontrolling Interest, Decrease from Redemptions or Purchase of Interests | $ 1.2 | |||||||
Graham Holdings Company [Member] | CSI Pharmacy Holding Company, LLC | ||||||||
Business Acquisition [Line Items] | ||||||||
Percentage Ownership After Change in Noncontrolling Interest | 76.50% | |||||||
Auto dealerships [Member] | Automotive [Member] | ||||||||
Business Acquisition [Line Items] | ||||||||
Amount Borrowed to Finance Business Acquisition | $ 77.4 | |||||||
Floor plan payables | $ 10.9 | |||||||
Number of Stores | store | 2 | |||||||
Applied Behavior Analysis clinics | Graham Healthcare Group [Member] | ||||||||
Business Acquisition [Line Items] | ||||||||
Percentage of interest acquired | 100% |
Acquisitions and Dispositions_4
Acquisitions and Dispositions of Businesses (Assets Acquired and Liabilities Assumed) (Details 1) - USD ($) $ in Thousands | Mar. 31, 2023 | Dec. 31, 2022 |
Business Acquisition [Line Items] | ||
Goodwill | $ 1,567,594 | $ 1,560,953 |
Series of Individually Immaterial Business Acquisitions [Member] | ||
Business Acquisition [Line Items] | ||
Accounts receivable | 3,172 | |
Inventory | 21,278 | |
Property, plant and equipment | 36,255 | |
Lease right-of-use assets | 4,773 | |
Goodwill | 56,163 | |
Indefinite-lived intangible assets | 41,800 | |
Amortized intangible assets | 1,200 | |
Other assets | 481 | |
Deferred income tax asset | 241 | |
Floor plan payables | (10,908) | |
Other liabilities | (3,798) | |
Current and noncurrent lease liabilities | (5,865) | |
Redeemable noncontrolling interest | (2,164) | |
Noncontrolling interest | (512) | |
Aggregate purchase price, net of cash acquired | $ 142,116 |
Acquisitions and Dispositions_5
Acquisitions and Dispositions of Businesses (Pro Forma Financials) (Details 2) $ in Thousands | 3 Months Ended |
Mar. 31, 2022 USD ($) | |
Business Acquisition [Line Items] | |
Pro forma operating revenues | $ 998,193 |
Pro forma net income | $ 100,676 |
Investments (Narrative) (Detail
Investments (Narrative) (Details) £ in Millions | 3 Months Ended | |||
Mar. 31, 2023 USD ($) shares | Mar. 31, 2022 USD ($) | Mar. 31, 2023 GBP (£) shares | Dec. 31, 2022 USD ($) shares | |
Schedule of Investments [Line Items] | ||||
Money Market Investments | $ 2,200,000 | $ 7,700,000 | ||
Marketable equity securities | 603,543,000 | 609,921,000 | ||
Investments in Marketable Securities | 4,600,000 | |||
Payments to Acquire Marketable Securities | 6,162,000 | $ 0 | ||
Cumulative realized (loss) gain on marketable securities | (12,200,000) | 41,600,000 | ||
Proceeds from sales of marketable equity securities | 29,028,000 | 55,731,000 | ||
Gain on sale of investments in affiliates | 15,000 | 604,000 | ||
Cumulative undistributed income in investments in affiliates | 50,100,000 | 49,100,000 | ||
Cost method investments | 69,400,000 | $ 66,700,000 | ||
Gain on a cost method investment | $ 1,831,000 | 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% | |||
Markel Corporation [Member] | ||||
Schedule of Investments [Line Items] | ||||
Number of Shares Held in Investment | shares | 55,430 | 55,430 | 55,430 | |
Marketable equity securities | $ 70,800,000 | $ 73,000,000 | ||
Berkshire Hathaway [Member] | ||||
Schedule of Investments [Line Items] | ||||
Marketable equity securities | $ 345,600,000 | |||
Berkshire Hathaway [Member] | Common Class A [Member] | ||||
Schedule of Investments [Line Items] | ||||
Number of Shares Held in Investment | shares | 422 | 422 | ||
Berkshire Hathaway [Member] | Common Class B [Member] | ||||
Schedule of Investments [Line Items] | ||||
Number of Shares Held in Investment | shares | 482,945 | 482,945 | ||
N2K Networks [Member] | ||||
Schedule of Investments [Line Items] | ||||
Equity Method Investment, Diluted Ownership Percentage | 49.90% | 49.90% | ||
Intersection Holdings [Member] | ||||
Schedule of Investments [Line Items] | ||||
Equity Method Investment, Ownership Percentage | 18% | 18% | ||
Graham Healthcare Group [Member] | ||||
Schedule of Investments [Line Items] | ||||
Revenue from Related Parties | $ 3,500,000 | 3,300,000 | ||
Graham Healthcare Group [Member] | Residential Home Health Illinois [Member] | ||||
Schedule of Investments [Line Items] | ||||
Equity Method Investment, Ownership Percentage | 40% | 40% | ||
Graham Healthcare Group [Member] | Residential Hospice Illinois [Member] | ||||
Schedule of Investments [Line Items] | ||||
Equity Method Investment, Ownership Percentage | 40% | 40% | ||
Gain on sale of investments in affiliates | 600,000 | |||
Graham Healthcare Group [Member] | Residential And Michigan Hospital Joint Venture [Member] | ||||
Schedule of Investments [Line Items] | ||||
Equity Method Investment, Ownership Percentage | 40% | 40% | ||
Graham Healthcare Group [Member] | Celtic Healthcare Allegheny Health Network Joint Venture [Member] | ||||
Schedule of Investments [Line Items] | ||||
Equity Method Investment, Ownership Percentage | 40% | 40% | ||
Graham Healthcare Group [Member] | Residential Home Health Illinois and Residential Hospice Illinois [Member] | ||||
Schedule of Investments [Line Items] | ||||
Additional investment in equity affiliates | $ 18,500,000 | |||
KIHL [Member] | York Joint Venture [Member] | ||||
Schedule of Investments [Line Items] | ||||
Equity Method Investment, Ownership Percentage | 45% | 45% | ||
Cumulative payments for advance to affiliate | £ | £ 22 | |||
Loan Receivable, Payment Terms | 25 years | |||
Loan Receivable Fixed Interest Rate | 7% | |||
Advances to Affiliate | £ | £ 20.4 |
Investments (Investments in Mar
Investments (Investments in Marketable Equity Securities) (Details 1) - USD ($) $ in Thousands | Mar. 31, 2023 | Dec. 31, 2022 |
Investments [Abstract] | ||
Total Cost | $ 234,157 | $ 270,764 |
Gross unrealized gains | 373,842 | 363,147 |
Gross unrealized losses | (4,456) | (23,990) |
Total Fair Value | $ 603,543 | $ 609,921 |
Investments (Gain (Loss) on Mar
Investments (Gain (Loss) on Marketable Equity Securities) (Details 2) - USD ($) $ in Thousands | 3 Months Ended | |
Mar. 31, 2023 | Mar. 31, 2022 | |
Investments [Abstract] | ||
Gain on marketable equity securities, net | $ 18,022 | $ 46,912 |
Less: Net losses in earnings from marketable equity securities sold | 3,657 | 5,767 |
Net unrealized gains in earnings from marketable equity securities still held at the end of the period | $ 21,679 | $ 52,679 |
Accounts Receivable, Accounts_3
Accounts Receivable, Accounts Payable and Accrued Liabilities (Narrative) (Details) - USD ($) $ in Millions | 3 Months Ended | ||
Mar. 31, 2023 | Mar. 31, 2022 | Dec. 31, 2022 | |
Accounts Receivable Accounts Payable And Accrued Liabilities [Abstract] | |||
Credit loss expense | $ 0.5 | $ 1.5 | |
Cash overdrafts | $ 3.6 | $ 0.5 |
Accounts Receivable, Accounts_4
Accounts Receivable, Accounts Payable and Accrued Liabilities (Schedule of Accounts Receivable) (Details 1) - USD ($) $ in Thousands | Mar. 31, 2023 | Dec. 31, 2022 |
Accounts and Financing Receivable, after Allowance for Credit Loss [Abstract] | ||
Receivable from contracts with customers, less estimated credit losses | $ 478,726 | $ 533,622 |
Other receivables | 28,788 | 27,157 |
Accounts receivable, net | 507,514 | 560,779 |
Estimated credit losses | $ 22,935 | $ 21,387 |
Accounts Receivable, Accounts_5
Accounts Receivable, Accounts Payable and Accrued Liabilities (Schedule of Accounts Payable and Accrued Liabilities) (Details 2) - USD ($) $ in Thousands | Mar. 31, 2023 | Dec. 31, 2022 |
Accounts Payable and Accrued Liabilities, Current [Abstract] | ||
Accounts payable | $ 133,805 | $ 136,186 |
Accrued compensation and related benefits | 112,378 | 149,823 |
Other accrued liabilities | 290,776 | 276,996 |
Total Accounts payable and Accrued liabilities | $ 536,959 | $ 563,005 |
Inventories, Contracts in Pro_3
Inventories, Contracts in Progress and Vehicle Floor Plan Payable (Narrative) (Details) - USD ($) | 3 Months Ended | |
Mar. 31, 2023 | Mar. 31, 2022 | |
Inventory [Line Items] | ||
Weighted average interest rate | 5.80% | 4.30% |
Automotive [Member] | ||
Inventory [Line Items] | ||
Borrowing capacity | $ 106,300,000 | |
Vehicle floor plan payable | 76,900,000 | |
Floor plan assistance | $ 1,400,000 | $ 900,000 |
Vehicle Floor Plan Facility [Member] | Automotive [Member] | ||
Inventory [Line Items] | ||
Weighted average interest rate | 5.40% | 2% |
Inventories, Contracts in Pro_4
Inventories, Contracts in Progress and Vehicle Floor Plan Payable (Details) - USD ($) $ in Thousands | Mar. 31, 2023 | Dec. 31, 2022 |
Inventory, Net of Allowances, Customer Advances and Progress Billings [Abstract] | ||
Raw materials | $ 67,950 | $ 68,494 |
Work-in-process | 15,141 | 15,718 |
Finished goods | 160,168 | 140,548 |
Contracts in progress | 2,961 | 2,051 |
Inventories and contracts in progress | $ 246,220 | $ 226,811 |
Goodwill and Other Intangible_3
Goodwill and Other Intangible Assets (Other Intangible Assets) (Narrative) (Details) - USD ($) $ in Thousands | 3 Months Ended | |
Mar. 31, 2023 | Mar. 31, 2022 | |
Amortized Intangible Assets [Line Items] | ||
Goodwill and intangible asset impairment charge | $ 745 | $ 0 |
Amortization of Intangible Assets | ||
Amortization of intangible assets | 13,944 | $ 14,912 |
Estimated amortization of intangible assets, remainder of 2023 | 36,000 | |
Estimated amortization of intangible assets, 2024 | 37,000 | |
Estimated amortization of intangible assets, 2025 | 29,000 | |
Estimated amortization of intangible assets, 2026 | 20,000 | |
Estimated amortization of intangible assets, 2027 | 6,000 | |
Estimated amortization of intangible assets, after 2027 | $ 20,000 |
Goodwill and Other Intangible_4
Goodwill and Other Intangible Assets (Changes in Carrying Amount of Goodwill) (Details 1) $ in Thousands | 3 Months Ended |
Mar. 31, 2023 USD ($) | |
Goodwill [Roll Forward] | |
Goodwill, beginning balance | $ 2,043,093 |
Accumulated impairment losses, beginning balance | (482,140) |
Goodwill, net, beginning balance | 1,560,953 |
Acquisitions | 385 |
Foreign currency exchange rate changes | 6,256 |
Goodwill, ending balance | 2,049,734 |
Accumulated impairment losses, ending balance | (482,140) |
Goodwill, net, ending balance | 1,567,594 |
Education [Member] | |
Goodwill [Roll Forward] | |
Goodwill, beginning balance | 1,145,502 |
Accumulated impairment losses, beginning balance | (331,151) |
Goodwill, net, beginning balance | 814,351 |
Acquisitions | 0 |
Foreign currency exchange rate changes | 6,256 |
Goodwill, ending balance | 1,151,758 |
Accumulated impairment losses, ending balance | (331,151) |
Goodwill, net, ending balance | 820,607 |
Education [Member] | Kaplan International [Member] | |
Goodwill [Roll Forward] | |
Goodwill, beginning balance | 579,561 |
Accumulated impairment losses, beginning balance | 0 |
Goodwill, net, beginning balance | 579,561 |
Foreign currency exchange rate changes | 6,252 |
Goodwill, ending balance | 585,813 |
Accumulated impairment losses, ending balance | 0 |
Goodwill, net, ending balance | 585,813 |
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 | 391,377 |
Accumulated impairment losses, beginning balance | (219,827) |
Goodwill, net, beginning balance | 171,550 |
Foreign currency exchange rate changes | 4 |
Goodwill, ending balance | 391,381 |
Accumulated impairment losses, ending balance | (219,827) |
Goodwill, net, ending balance | 171,554 |
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 | (34,302) |
Goodwill, net, beginning balance | 200,691 |
Acquisitions | 0 |
Foreign currency exchange rate changes | 0 |
Goodwill, ending balance | 234,993 |
Accumulated impairment losses, ending balance | (34,302) |
Goodwill, net, ending balance | 200,691 |
Healthcare [Member] | |
Goodwill [Roll Forward] | |
Goodwill, beginning balance | 135,870 |
Accumulated impairment losses, beginning balance | 0 |
Goodwill, net, beginning balance | 135,870 |
Acquisitions | 385 |
Foreign currency exchange rate changes | 0 |
Goodwill, ending balance | 136,255 |
Accumulated impairment losses, ending balance | 0 |
Goodwill, net, ending balance | 136,255 |
Automotive [Member] | |
Goodwill [Roll Forward] | |
Goodwill, beginning balance | 84,697 |
Accumulated impairment losses, beginning balance | 0 |
Goodwill, net, beginning balance | 84,697 |
Acquisitions | 0 |
Foreign currency exchange rate changes | 0 |
Goodwill, ending balance | 84,697 |
Accumulated impairment losses, ending balance | 0 |
Goodwill, net, ending balance | 84,697 |
Other Businesses [Member] | |
Goodwill [Roll Forward] | |
Goodwill, beginning balance | 251,216 |
Accumulated impairment losses, beginning balance | (116,687) |
Goodwill, net, beginning balance | 134,529 |
Acquisitions | 0 |
Foreign currency exchange rate changes | 0 |
Goodwill, ending balance | 251,216 |
Accumulated impairment losses, ending balance | (116,687) |
Goodwill, net, ending balance | $ 134,529 |
Goodwill and Other Intangible_5
Goodwill and Other Intangible Assets (Other Intangible Assets) (Details 2) - USD ($) $ in Thousands | 3 Months Ended | 12 Months Ended |
Mar. 31, 2023 | Dec. 31, 2022 | |
Amortized Intangible Assets [Line Items] | ||
Gross Carrying Amount | $ 543,623 | $ 544,128 |
Accumulated Amortization | 396,070 | 382,706 |
Net Carrying Amount | 147,553 | 161,422 |
Indefinite-Lived Intangible Assets [Line Items] | ||
Indefinite-Lived Intangible Assets | 180,038 | 178,934 |
Franchise Agreements [Member] | ||
Indefinite-Lived Intangible Assets [Line Items] | ||
Indefinite-Lived Intangible Assets | 85,858 | 85,858 |
Trade Names and Trademarks [Member] | ||
Indefinite-Lived Intangible Assets [Line Items] | ||
Indefinite-Lived Intangible Assets | 83,009 | 81,905 |
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 |
Other [Member] | ||
Indefinite-Lived Intangible Assets [Line Items] | ||
Indefinite-Lived Intangible Assets | 21 | 21 |
Student and Customer Relationships [Member] | ||
Amortized Intangible Assets [Line Items] | ||
Gross Carrying Amount | 298,022 | 297,766 |
Accumulated Amortization | 236,486 | 230,429 |
Net Carrying Amount | $ 61,536 | $ 67,337 |
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 | $ 148,286 | $ 148,102 |
Accumulated Amortization | 84,833 | 81,078 |
Net Carrying Amount | $ 63,453 | $ 67,024 |
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 | 15 years | 15 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 | 11,112 | 10,367 |
Net Carrying Amount | 6,288 | 7,033 |
Databases and Technology [Member] | ||
Amortized Intangible Assets [Line Items] | ||
Gross Carrying Amount | 36,251 | 36,216 |
Accumulated Amortization | 33,714 | 32,219 |
Net Carrying Amount | $ 2,537 | $ 3,997 |
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 | $ 20 | $ 1,000 |
Accumulated Amortization | 16 | 995 |
Net Carrying Amount | $ 4 | $ 5 |
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 | $ 43,644 | $ 43,644 |
Accumulated Amortization | 29,909 | 27,618 |
Net Carrying Amount | $ 13,735 | $ 16,026 |
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) | 3 Months Ended | ||||
Mar. 31, 2023 USD ($) | Mar. 31, 2023 USD ($) | Mar. 31, 2022 USD ($) | Mar. 31, 2023 GBP (£) | Dec. 31, 2022 USD ($) | |
Debt Instrument [Line Items] | |||||
Average borrowings outstanding | $ 735,000,000 | $ 665,000,000 | |||
Weighted average interest rate | 5.80% | 4.30% | |||
Interest Expense, Net | $ (13,090,000) | $ (10,702,000) | |||
Interest expense | 14,294,000 | 11,417,000 | |||
5.75% Unsecured Notes maturing in 2026 [Member] | |||||
Debt Instrument [Line Items] | |||||
Unamortized debt issuance costs | $ 2,300,000 | $ 2,300,000 | $ 2,500,000 | ||
Interest rate | 5.75% | 5.75% | 5.75% | 5.75% | |
Fair value of debt instrument | $ 393,700,000 | $ 393,700,000 | $ 395,100,000 | ||
Five-Year Credit Agreement maturing in 2027 [Member] | |||||
Debt Instrument [Line Items] | |||||
Credit facility current borrowing capacity | 300,000,000 | 300,000,000 | |||
Line of credit facility outstanding | 168,766,000 | 168,766,000 | 200,236,000 | ||
USD revolving credit facility borrowings [Member] | |||||
Debt Instrument [Line Items] | |||||
Line of credit facility outstanding | 107,000,000 | 107,000,000 | |||
GBP revolving credit facility borrowings [Member] | |||||
Debt Instrument [Line Items] | |||||
Line of credit facility outstanding | £ | £ 50,000,000 | ||||
Commercial note with Truist Bank maturing in 2031 - $24.75 million [Member] | |||||
Debt Instrument [Line Items] | |||||
Unamortized debt issuance costs | 100,000 | 100,000 | 100,000 | ||
Commercial note with Truist Bank maturing in 2032 - $27.2 million [Member] | |||||
Debt Instrument [Line Items] | |||||
Unamortized debt issuance costs | $ 100,000 | 100,000 | $ 100,000 | ||
Secured Overnight Financing Rates (SOFR) [Member] | USD revolving credit facility borrowings [Member] | |||||
Debt Instrument [Line Items] | |||||
Applicable interest rate margin | 1.375% | ||||
Prime Rate [Member] | USD revolving credit facility borrowings [Member] | |||||
Debt Instrument [Line Items] | |||||
Applicable interest rate margin | 0.375% | ||||
Sterling Overnight Interbank Average Rate (SONIA) [Member] | GBP revolving credit facility borrowings [Member] | |||||
Debt Instrument [Line Items] | |||||
Applicable interest rate margin | 1.375% | ||||
Securities Subject to Mandatory Redemption [Member] | Graham Healthcare Group [Member] | |||||
Debt Instrument [Line Items] | |||||
Interest expense | $ 1,500,000 | $ 3,400,000 |
Debt (Details 1)
Debt (Details 1) - USD ($) $ in Thousands | Mar. 31, 2023 | Dec. 31, 2022 | |
Debt Instrument [Line Items] | |||
Other indebtedness | $ 3,506 | $ 3,560 | |
Total Debt | 691,119 | 726,360 | |
Less: current portion | (123,018) | (155,813) | |
Total Long-Term Debt | 568,101 | 570,547 | |
5.75% Unsecured Notes maturing in 2026 [Member] | |||
Debt Instrument [Line Items] | |||
Unsecured notes | [1] | 397,725 | 397,548 |
Unamortized debt issuance costs | $ 2,300 | $ 2,500 | |
Stated interest rate | 5.75% | 5.75% | |
Effective interest rate | 5.75% | ||
Five-Year Credit Agreement maturing in 2027 [Member] | |||
Debt Instrument [Line Items] | |||
Credit facility | $ 168,766 | $ 200,236 | |
Effective interest rate | 5.81% | ||
Commercial note with Truist Bank maturing in 2031 - $24.75 million [Member] | |||
Debt Instrument [Line Items] | |||
Commercial note | [2] | $ 23,276 | 23,522 |
Unamortized debt issuance costs | $ 100 | 100 | |
Effective interest rate | 6.33% | ||
Commercial note with Truist Bank maturing in 2032 - $71.6 million [Member] | |||
Debt Instrument [Line Items] | |||
Commercial note | $ 63,483 | 66,513 | |
Effective interest rate | 6.54% | ||
Commercial note with Truist Bank maturing in 2032 - $27.2 million [Member] | |||
Debt Instrument [Line Items] | |||
Commercial note | [3] | $ 26,211 | 26,548 |
Unamortized debt issuance costs | $ 100 | 100 | |
Effective interest rate | 6.40% | ||
Pinnacle Bank Term Loan maturing in 2024 [Member] | |||
Debt Instrument [Line Items] | |||
Loans Payable to Bank | $ 8,152 | $ 8,433 | |
Stated interest rate | 4.15% | ||
Effective interest rate | 4.18% | ||
Minimum [Member] | Five-Year Credit Agreement maturing in 2027 [Member] | |||
Debt Instrument [Line Items] | |||
Stated interest rate | 4.80% | ||
Minimum [Member] | Commercial note with Truist Bank maturing in 2031 - $24.75 million [Member] | |||
Debt Instrument [Line Items] | |||
Stated interest rate | 6.10% | ||
Minimum [Member] | Commercial note with Truist Bank maturing in 2032 - $71.6 million [Member] | |||
Debt Instrument [Line Items] | |||
Stated interest rate | 6.38% | ||
Minimum [Member] | Commercial note with Truist Bank maturing in 2032 - $27.2 million [Member] | |||
Debt Instrument [Line Items] | |||
Stated interest rate | 6.13% | ||
Minimum [Member] | Other Indebtedness [Member] | |||
Debt Instrument [Line Items] | |||
Stated interest rate | 0% | ||
Maximum [Member] | Five-Year Credit Agreement maturing in 2027 [Member] | |||
Debt Instrument [Line Items] | |||
Stated interest rate | 8.38% | ||
Maximum [Member] | Commercial note with Truist Bank maturing in 2031 - $24.75 million [Member] | |||
Debt Instrument [Line Items] | |||
Stated interest rate | 6.37% | ||
Maximum [Member] | Commercial note with Truist Bank maturing in 2032 - $71.6 million [Member] | |||
Debt Instrument [Line Items] | |||
Stated interest rate | 6.72% | ||
Maximum [Member] | Commercial note with Truist Bank maturing in 2032 - $27.2 million [Member] | |||
Debt Instrument [Line Items] | |||
Stated interest rate | 6.47% | ||
Maximum [Member] | Other Indebtedness [Member] | |||
Debt Instrument [Line Items] | |||
Stated interest rate | 16% | ||
[1] The carrying value is net of $2.3 million and $2.5 million of unamortized debt issuance costs as of March 31, 2023 and December 31, 2022, respectively . |
Fair Value Measurements (Narrat
Fair Value Measurements (Narrative) (Details) - USD ($) $ in Thousands | 3 Months Ended | |
Mar. 31, 2023 | Mar. 31, 2022 | |
Fair Value Disclosures [Abstract] | ||
Impairment of long-lived assets | $ 745 | $ 0 |
Gain on a cost method investment | $ 1,831 | $ 0 |
Fair Value Measurements (Fair V
Fair Value Measurements (Fair Value of Financial Assets and Liabilities) (Details 1) - USD ($) $ in Thousands | Mar. 31, 2023 | Dec. 31, 2022 | |
Assets | |||
Money Market Investments | $ 2,200 | $ 7,700 | |
Marketable equity securities | 603,543 | 609,921 | |
Fair Value, Recurring [Member] | |||
Assets | |||
Money Market Investments | [1] | 2,249 | 7,686 |
Marketable equity securities | [2] | 603,543 | 609,921 |
Other current investments | [3] | 12,836 | 12,487 |
Interest Rate Swap | [4] | 1,682 | 2,636 |
Total Financial Assets | 620,310 | 632,730 | |
Liabilities | |||
Contingent consideration liabilities | [5] | 8,206 | 8,423 |
Foreign exchange swap | [6] | 333 | |
Mandatorily redeemable noncontrolling interest | [7] | 32,309 | 30,845 |
Total Financial Liabilities | 40,515 | 39,601 | |
Level 1 | Fair Value, Recurring [Member] | |||
Assets | |||
Money Market Investments | [1] | 0 | 0 |
Marketable equity securities | [2] | 603,543 | 609,921 |
Other current investments | [3] | 8,020 | 7,471 |
Interest Rate Swap | [4] | 0 | 0 |
Total Financial Assets | 611,563 | 617,392 | |
Liabilities | |||
Contingent consideration liabilities | [5] | 0 | 0 |
Foreign exchange swap | [6] | 0 | |
Mandatorily redeemable noncontrolling interest | [7] | 0 | 0 |
Total Financial Liabilities | 0 | 0 | |
Level 2 | Fair Value, Recurring [Member] | |||
Assets | |||
Money Market Investments | [1] | 2,249 | 7,686 |
Marketable equity securities | [2] | 0 | 0 |
Other current investments | [3] | 4,816 | 5,016 |
Interest Rate Swap | [4] | 1,682 | 2,636 |
Total Financial Assets | 8,747 | 15,338 | |
Liabilities | |||
Contingent consideration liabilities | [5] | 0 | 0 |
Foreign exchange swap | [6] | 333 | |
Mandatorily redeemable noncontrolling interest | [7] | 0 | 0 |
Total Financial Liabilities | 0 | 333 | |
Level 3 | Fair Value, Recurring [Member] | |||
Assets | |||
Money Market Investments | [1] | 0 | 0 |
Marketable equity securities | [2] | 0 | 0 |
Other current investments | [3] | 0 | 0 |
Interest Rate Swap | [4] | 0 | 0 |
Total Financial Assets | 0 | 0 | |
Liabilities | |||
Contingent consideration liabilities | [5] | 8,206 | 8,423 |
Foreign exchange swap | [6] | 0 | |
Mandatorily redeemable noncontrolling interest | [7] | 32,309 | 30,845 |
Total Financial Liabilities | $ 40,515 | $ 39,268 | |
[1]The Company’s money market investments are included in cash and cash equivalents and the value considers the liquidity of the counterparty.[2]The Company’s investments in marketable equity securities are held in common shares of U.S. corporations that are actively traded on U.S. stock exchanges. Price quotes for these shares are readily available.[3]Includes U.S. Government Securities, corporate bonds, mutual funds and time deposits. These investments are valued using a market approach based on the quoted market prices of the security or inputs that include quoted market prices for similar instruments and are classified as either Level 1 or Level 2 in the fair value hierarchy.[4]Included in Deferred Charges and Other Assets. The Company utilized a market approach model using the notional amount of the interest rate swap multiplied by the observable inputs of time to maturity and market interest rates.[5]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, Black-Scholes model, 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 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.[7]The fair value of the mandatorily redeemable noncontrolling interest is based on the fair value of the underlying subsidiaries owned by GHC One and GHC Two, 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. |
Fair Value Measurements (Reconc
Fair Value Measurements (Reconciliation of Changes in Financial Liabilities Fair Value Using Level 3 Inputs) (Details 2) - Level 3 - USD ($) $ in Thousands | 3 Months Ended | ||
Mar. 31, 2023 | Mar. 31, 2022 | ||
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 | $ 8,423 | $ 14,881 | |
Acquisition of business | 220 | (3) | |
Changes in fair value | [1] | 0 | 0 |
Accretion of value included in net income | [1] | 315 | 76 |
Settlements or distributions | (752) | 0 | |
Fair Value, Measurement with Unobservable Inputs Reconciliation, Recurring Basis, Liability Value, Ending Balance | 8,206 | 14,954 | |
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 | 30,845 | 13,661 | |
Acquisition of business | 0 | 0 | |
Changes in fair value | [1] | 1,468 | 3,423 |
Accretion of value included in net income | [1] | 0 | 0 |
Settlements or distributions | (4) | (53) | |
Fair Value, Measurement with Unobservable Inputs Reconciliation, Recurring Basis, Liability Value, Ending Balance | $ 32,309 | $ 17,031 | |
[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 expense in the Company’s Condensed Consolidated Statements of Operations. |
Revenue from Contracts with C_3
Revenue from Contracts with Customers (Narrative) (Details) - USD ($) $ in Thousands | 1 Months Ended | 3 Months Ended | ||
Apr. 30, 2020 | Mar. 31, 2023 | Mar. 31, 2022 | Dec. 31, 2022 | |
Disaggregation of Revenue [Line Items] | ||||
Deferred revenue recognized in period related to beginning balance | $ 183,700 | |||
Deferred Revenue | $ 377,050 | $ 385,507 | ||
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 | $ 31,500 | |||
Deferred revenue recognized | $ 6,400 | |||
Transferred over Time [Member] | ||||
Disaggregation of Revenue [Line Items] | ||||
Percentage of Revenue | 55% | 61% | ||
Transferred at Point in Time [Member] | ||||
Disaggregation of Revenue [Line Items] | ||||
Percentage of Revenue | 45% | 39% | ||
U.S. [Member] | ||||
Disaggregation of Revenue [Line Items] | ||||
Percentage of Revenue | 79% | 79% | ||
Non-US [Member] | ||||
Disaggregation of Revenue [Line Items] | ||||
Percentage of Revenue | 21% | 21% | ||
Kaplan International [Member] | ||||
Disaggregation of Revenue [Line Items] | ||||
Contract with Customer, Asset, Net, Noncurrent | $ 34,100 | $ 26,300 | ||
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 | 67% |
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]: 2023-04-01 $ in Millions | Mar. 31, 2023 USD ($) |
Kaplan International [Member] | |
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction [Line Items] | |
Revenue, Remaining Performance Obligation, Amount | $ 323.1 |
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction, Period | 6 years |
Supplemental Education [Member] | |
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction [Line Items] | |
Revenue, Remaining Performance Obligation, Amount | $ 6.8 |
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 | 3 Months Ended | |
Mar. 31, 2023 | Dec. 31, 2022 | |
Revenue from Contract with Customer [Abstract] | ||
Deferred Revenue | $ 377,050 | $ 385,507 |
Deferred Revenue, Period Decrease Percentage | (2.00%) |
Revenue from Contracts with C_6
Revenue from Contracts with Customers (Capitalized Contract Cost) (Details) - USD ($) $ in Thousands | 3 Months Ended | |
Mar. 31, 2023 | Dec. 31, 2022 | |
Revenue from Contract with Customer [Abstract] | ||
Contract costs capitalized during the period | $ 16,068 | |
Costs amortized during the period | (19,637) | |
Change in capitalized contract cost, other | 541 | |
Balance of costs to obtain a contract | $ 28,619 | $ 31,647 |
Earnings Per Share (Narrative)
Earnings Per Share (Narrative) (Details) - $ / shares | 3 Months Ended | |
Mar. 31, 2023 | Mar. 31, 2022 | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||
Dividends declared per common share | $ 3.30 | $ 3.16 |
Stock Option Plan [Member] | ||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||
Antidilutive securities, shares | 105,000 | 105,000 |
Earnings Per Share (Details 1)
Earnings Per Share (Details 1) - USD ($) $ / shares in Units, shares in Thousands, $ in Thousands | 3 Months Ended | |
Mar. 31, 2023 | Mar. 31, 2022 | |
Schedule of Earnings Per Share, Basic and Diluted, Including Two Class Method [Line Items] | ||
Net income attributable to Graham Holdings Company common stockholders | $ 52,272 | $ 95,624 |
Less: Dividends paid-common stock outstanding and unvested restricted shares | (15,812) | (15,497) |
Undistributed earnings | $ 36,460 | $ 80,127 |
Percent allocated to common stockholders | 99.35% | 99.35% |
Undistributed Earnings Allocated To Common Stockholders | $ 36,225 | $ 79,611 |
Add: Dividends paid-common stock outstanding | 15,711 | 15,397 |
Numerator for basic earnings per share | 51,936 | 95,008 |
Add: Additional undistributed earnings due to dilutive stock options | 1 | 1 |
Numerator for diluted earnings per share | $ 51,937 | $ 95,009 |
Weighted average shares outstanding (shares) | 4,759 | 4,871 |
Denominator for diluted earnings per share (shares) | 4,776 | 4,885 |
Graham Holdings Company Common Stockholders: | ||
Basic income per common share (in usd per share) | $ 10.91 | $ 19.50 |
Diluted income per common share (in usd per share) | $ 10.88 | $ 19.45 |
Stock Option Plan [Member] | ||
Schedule of Earnings Per Share, Basic and Diluted, Including Two Class Method [Line Items] | ||
Add: Effect of dilutive stock options (shares) | 17 | 14 |
Earnings Per Share (Details 2)
Earnings Per Share (Details 2) - shares shares in Thousands | 3 Months Ended | |
Mar. 31, 2023 | Mar. 31, 2022 | |
Restricted Stock [Member] | ||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||
Antidilutive securities, shares | 10 | 16 |
Pension and Postretirement Pl_3
Pension and Postretirement Plans (Narrative) (Details) - Defined Benefit Pension Plan [Member] $ in Thousands | 3 Months Ended | 12 Months Ended | |
Mar. 31, 2023 USD ($) investment company | Mar. 31, 2022 USD ($) | Dec. 31, 2022 USD ($) investment | |
Defined Benefit Plan Disclosure [Line Items] | |||
Special separation benefit expense | $ 4,129 | $ 0 | |
Percent of plan assets managed internally by the company | 41% | ||
Percent of plan assets managed by investment companies | 59% | ||
Number of investment companies actively managing plan assets | company | 2 | ||
Percentage of total plan assets | 100% | 100% | |
Berkshire Hathaway Common Stock [Member] | Investment Manager 2 [Member] | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Defined benefit plan, target allocation maximum percentage of assets, singular equity security, without prior approval by plan administrator | 20% | ||
Alphabet and Berkshire Hathaway Common Stock [Member] | Investment Manager 1 [Member] | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Defined benefit plan, target allocation maximum percentage of assets, singular equity security, without prior approval by plan administrator | 15% | ||
Foreign Investments [Member] | Maximum [Member] | Investment Manager 1 [Member] | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Defined benefit plan, target allocation percentage of assets | 30% | ||
Foreign Investments [Member] | Maximum [Member] | Investment Manager 2 [Member] | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Defined benefit plan, target allocation percentage of assets | 15% | ||
Fixed income securities [Member] | Minimum [Member] | Investment Manager 2 [Member] | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Defined benefit plan, target allocation percentage of assets | 10% | ||
Private investment fund [Member] | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Percentage of total plan assets | 17% | 16% | |
Single Equity Concentration [Member] | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Defined benefit plan, target allocation maximum percentage of assets, singular equity security, without prior approval by plan administrator | 10% | 10% | |
Value of investments | $ 876,600 | $ 842,600 | |
Percentage of total plan assets | 33% | 33% | |
Single Equity Concentration [Member] | Equity Securities [Member] | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Number of investments the company's pension plan held which individually exceed 10% of total plan assets | investment | 1 | 1 | |
Single Equity Concentration [Member] | Private investment fund [Member] | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Number of investments the company's pension plan held which individually exceed 10% of total plan assets | investment | 1 | 1 | |
Concentration In Single Entity, Type Of Industry, Foreign Country Or Individual Fund [Member] | Defined Benefit Plan Assets Total [Member] | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Minimum percentage of plan assets considered as significant concentrations in pension plans | 10% | ||
Leaf Group and Code3 [Member] | Separation Incentive Program [Member] | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Special separation benefit expense | $ 4,100 |
Pension and Postretirement Pl_4
Pension and Postretirement Plans (Total Benefit/Cost) (Details 1) - USD ($) $ in Thousands | 3 Months Ended | |
Mar. 31, 2023 | Mar. 31, 2022 | |
Defined Benefit Plan Disclosure [Line Items] | ||
Service cost | $ 9,243 | $ 6,031 |
Net Periodic Cost (Benefit) | (23,162) | (44,782) |
Defined Benefit Pension Plan [Member] | ||
Defined Benefit Plan Disclosure [Line Items] | ||
Service cost | 9,243 | 6,031 |
Interest cost | 11,534 | 7,670 |
Expected return on assets | (38,338) | (41,963) |
Amortization of prior service cost (credit) | 410 | 709 |
Recognized actuarial loss (gain) | (10,140) | (17,229) |
Net Periodic Cost (Benefit) | (27,291) | (44,782) |
Special separation benefit expense | 4,129 | 0 |
Net Periodic Cost (Benefit) | (23,162) | (44,782) |
Supplemental Executive Retirement Plan (SERP) [Member] | ||
Defined Benefit Plan Disclosure [Line Items] | ||
Service cost | 148 | 228 |
Interest cost | 1,165 | 822 |
Amortization of prior service cost (credit) | 0 | 9 |
Recognized actuarial loss (gain) | 0 | 166 |
Net Periodic Cost (Benefit) | 1,313 | 1,225 |
Other Postretirement Plans [Member] | ||
Defined Benefit Plan Disclosure [Line Items] | ||
Interest cost | 22 | 24 |
Amortization of prior service cost (credit) | (1) | (2) |
Recognized actuarial loss (gain) | (626) | (711) |
Net Periodic Cost (Benefit) | $ (605) | $ (689) |
Pension and Postretirement Pl_5
Pension and Postretirement Plans (Asset Allocation) (Details 2) - Defined Benefit Pension Plans [Member] | Mar. 31, 2023 | Dec. 31, 2022 |
Defined Benefit Plan Disclosure [Line Items] | ||
Defined Benefit Plan Assets Allocation (Percent) | 100% | 100% |
U.S. equities [Member] | ||
Defined Benefit Plan Disclosure [Line Items] | ||
Defined Benefit Plan Assets Allocation (Percent) | 57% | 59% |
Private investment fund [Member] | ||
Defined Benefit Plan Disclosure [Line Items] | ||
Defined Benefit Plan Assets Allocation (Percent) | 17% | 16% |
International equities [Member] | ||
Defined Benefit Plan Disclosure [Line Items] | ||
Defined Benefit Plan Assets Allocation (Percent) | 12% | 11% |
U.S. stock index fund [Member] | ||
Defined Benefit Plan Disclosure [Line Items] | ||
Defined Benefit Plan Assets Allocation (Percent) | 7% | 7% |
U.S. fixed income [Member] | ||
Defined Benefit Plan Disclosure [Line Items] | ||
Defined Benefit Plan Assets Allocation (Percent) | 7% | 7% |
Other Non-Operating Income (Nar
Other Non-Operating Income (Narrative) (Details) - USD ($) $ in Millions | 3 Months Ended | |
Mar. 31, 2023 | Mar. 31, 2022 | |
Education [Member] | Higher Education [Member] | Kaplan University Transaction [Member] | ||
Schedule of Non-Operating Income (Expense) [Line Items] | ||
Gain related to contingent consideration | $ 1 | $ 0.9 |
Other Non-Operating Income (Det
Other Non-Operating Income (Details 1) - USD ($) $ in Thousands | 3 Months Ended | |
Mar. 31, 2023 | Mar. 31, 2022 | |
Other Nonoperating Income (Expense) [Abstract] | ||
Gain on a cost method investment | $ 1,831 | $ 0 |
Foreign currency loss, net | (1,504) | (1,047) |
Gain on sale of business | 1,000 | 945 |
Gain on sale of cost method investments | 785 | 1,075 |
Gain on sale of investments in affiliates | 15 | 604 |
Other gain, net | 956 | 1,299 |
Total Other Non-Operating Income | 3,083 | 2,876 |
Equity Securities, FV-NI, Realized Gain (Loss) | $ (3,657) | $ (5,767) |
Accumulated Other Comprehensi_3
Accumulated Other Comprehensive Income (Loss) (Components of OCI) (Details 1) - USD ($) $ in Thousands | 3 Months Ended | ||
Mar. 31, 2023 | Mar. 31, 2022 | ||
Other Comprehensive Income (Loss) [Line Items] | |||
Other Comprehensive Income (Loss), before tax | $ (2,293) | $ (17,154) | |
Other Comprehensive Income (Loss), income tax | 2,878 | 4,019 | |
Other Comprehensive Income (Loss), Net of Tax | 585 | (13,135) | |
Foreign Currency Translation Adjustment [Member] | |||
Other Comprehensive Income (Loss) [Line Items] | |||
Other Comprehensive Income (Loss), before Reclassifications, Net of Tax | 8,994 | ||
Reclassification from Accumulated Other Comprehensive Income, Current Period, Net of Tax | 0 | ||
Other Comprehensive Income (Loss), before tax | 8,994 | (1,738) | |
Other Comprehensive Income (Loss), income tax | 0 | 0 | |
Other Comprehensive Income (Loss), Net of Tax | 8,994 | (1,738) | |
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 | (10,357) | (17,058) | |
Reclassification from AOCI, Current Period, Tax | 2,664 | 4,397 | |
Reclassification from Accumulated Other Comprehensive Income, Current Period, Net of Tax | (7,693) | (12,661) | |
Other Comprehensive Income (Loss), before tax | (10,357) | (17,058) | |
Other Comprehensive Income (Loss), income tax | 2,664 | 4,397 | |
Other Comprehensive Income (Loss), Net of Tax | (7,693) | (12,661) | |
Net Prior Service (Credit) Cost [Member] | |||
Other Comprehensive Income (Loss) [Line Items] | |||
Reclassification from Accumulated Other Comprehensive Income, Current Period, before Tax | [1] | 409 | 716 |
Reclassification from AOCI, Current Period, Tax | (105) | (184) | |
Reclassification from Accumulated Other Comprehensive Income, Current Period, Net of Tax | 304 | 532 | |
Net Actuarial Gain [Member] | |||
Other Comprehensive Income (Loss) [Line Items] | |||
Reclassification from Accumulated Other Comprehensive Income, Current Period, before Tax | [1] | (10,766) | (17,774) |
Reclassification from AOCI, Current Period, Tax | 2,769 | 4,581 | |
Reclassification from Accumulated Other Comprehensive Income, Current Period, Net of Tax | (7,997) | (13,193) | |
Cash Flow Hedges [Member] | |||
Other Comprehensive Income (Loss) [Line Items] | |||
Other Comprehensive Income (Loss), before Reclassifications, Net of Tax | (542) | ||
Reclassification from Accumulated Other Comprehensive Income, Current Period, Net of Tax | (174) | ||
Other Comprehensive Income (Loss), before tax | (930) | 1,642 | |
Other Comprehensive Income (Loss), income tax | 214 | (378) | |
Other Comprehensive Income (Loss), Net of Tax | $ (716) | $ 1,264 | |
[1]These accumulated other comprehensive income components are included in the computation of net periodic pension and postretirement plan cost (see Note 11) and are included in non-operating pension and postretirement benefit income in the Company’s Condensed Consolidated Statements of Operations. |
Accumulated Other Comprehensi_4
Accumulated Other Comprehensive Income (Loss) (AOCI balances) (Details 2) - USD ($) $ in Thousands | 3 Months Ended | |
Mar. 31, 2023 | Mar. 31, 2022 | |
AOCI Including Portion Attributable to Noncontrolling Interest, Net of Tax [Roll Forward] | ||
As of | $ 3,752,661 | $ 4,411,669 |
Other Comprehensive Income (Loss), Net of Tax | 585 | (13,135) |
As of | 3,769,730 | 4,472,941 |
AOCI Including Portion Attributable to Noncontrolling Interest [Member] | ||
AOCI Including Portion Attributable to Noncontrolling Interest, Net of Tax [Roll Forward] | ||
As of | 336,151 | |
Other comprehensive income (loss) before reclassifications | 8,452 | |
Net amount reclassified from accumulated other comprehensive income | (7,867) | |
Other Comprehensive Income (Loss), Net of Tax | 585 | |
As of | 336,736 | |
Cumulative Foreign Currency Translation Adjustment [Member] | ||
AOCI Including Portion Attributable to Noncontrolling Interest, Net of Tax [Roll Forward] | ||
As of | (54,638) | |
Other comprehensive income (loss) before reclassifications | 8,994 | |
Net amount reclassified from accumulated other comprehensive income | 0 | |
Other Comprehensive Income (Loss), Net of Tax | 8,994 | (1,738) |
As of | (45,644) | |
Unrealized Gain on Pensions and Other Postretirement Plans [Member] | ||
AOCI Including Portion Attributable to Noncontrolling Interest, Net of Tax [Roll Forward] | ||
As of | 388,591 | |
Other comprehensive income (loss) before reclassifications | 0 | |
Net amount reclassified from accumulated other comprehensive income | (7,693) | (12,661) |
Other Comprehensive Income (Loss), Net of Tax | (7,693) | (12,661) |
As of | 380,898 | |
Cash Flow Hedges [Member] | ||
AOCI Including Portion Attributable to Noncontrolling Interest, Net of Tax [Roll Forward] | ||
As of | 2,198 | |
Other comprehensive income (loss) before reclassifications | (542) | |
Net amount reclassified from accumulated other comprehensive income | (174) | |
Other Comprehensive Income (Loss), Net of Tax | (716) | $ 1,264 |
As of | $ 1,482 |
Accumulated Other Comprehensi_5
Accumulated Other Comprehensive Income (Loss) (Reclassifications out of AOCI) (Details 3) - USD ($) $ in Thousands | 3 Months Ended | ||
Mar. 31, 2023 | Mar. 31, 2022 | ||
Reclassification Adjustment Out Of Accumulated Other Comprehensive Income [Line Items] | |||
Interest expense | $ 14,294 | $ 11,417 | |
Provision for Income Taxes | 19,200 | 35,600 | |
Net of Tax | (52,977) | (96,566) | |
Reclassification out of Accumulated Other Comprehensive Income [Member] | |||
Reclassification Adjustment Out Of Accumulated Other Comprehensive Income [Line Items] | |||
Net of Tax | (7,867) | (12,477) | |
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 | (10,357) | (17,058) | |
Provision for (Benefit from) Income Tax | 2,664 | 4,397 | |
Reclassifications, net of tax | (7,693) | (12,661) | |
Net Prior Service (Credit) Cost [Member] | |||
Reclassification Adjustment Out Of Accumulated Other Comprehensive Income [Line Items] | |||
Reclassifications, before tax | [1] | 409 | 716 |
Provision for (Benefit from) Income Tax | (105) | (184) | |
Reclassifications, net of tax | 304 | 532 | |
Net Actuarial Gain [Member] | |||
Reclassification Adjustment Out Of Accumulated Other Comprehensive Income [Line Items] | |||
Reclassifications, before tax | [1] | (10,766) | (17,774) |
Provision for (Benefit from) Income Tax | 2,769 | 4,581 | |
Reclassifications, net of tax | (7,997) | (13,193) | |
Cash Flow Hedges [Member] | |||
Reclassification Adjustment Out Of Accumulated Other Comprehensive Income [Line Items] | |||
Reclassifications, net of tax | (174) | ||
Cash Flow Hedges [Member] | Reclassification out of Accumulated Other Comprehensive Income [Member] | |||
Reclassification Adjustment Out Of Accumulated Other Comprehensive Income [Line Items] | |||
Interest expense | $ (174) | $ 184 | |
[1]These accumulated other comprehensive income components are included in the computation of net periodic pension and postretirement plan cost (see Note 11) 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 Millions | 1 Months Ended | ||
Jul. 31, 2021 USD ($) investment | May 31, 2021 claim | Mar. 31, 2023 USD ($) claim | |
Loss Contingencies [Line Items] | |||
Number of existing legal claims or proceedings that are likely to have a material effect on the Company's business | claim | 0 | ||
Maximum [Member] | |||
Loss Contingencies [Line Items] | |||
Loss contingency, estimate of possible loss | $ | $ 15 | ||
Education [Member] | |||
Loss Contingencies [Line Items] | |||
Claims received | investment | 1,449 | ||
Loss Contingency Borrower Defense Claims Discharge Loan Amount | $ | $ 35 | ||
Education [Member] | Minimum [Member] | |||
Loss Contingencies [Line Items] | |||
Potential claims Per ED | claim | 800 |
Business Segments (Narrative) (
Business Segments (Narrative) (Details) | 3 Months Ended |
Mar. 31, 2023 segment | |
Business Segments [Line Items] | |
Number of reportable segments | 7 |
Business Segments (Information
Business Segments (Information by Operating Segment) (Details 1) - USD ($) $ in Thousands | 3 Months Ended | ||
Mar. 31, 2023 | Mar. 31, 2022 | Dec. 31, 2022 | |
Segment Reporting Information [Line Items] | |||
Operating Revenues | $ 1,031,546 | $ 914,721 | |
Income (Loss) from Operations before Amortization of Intangible Assets and Impairment of Long-Lived Assets | 42,345 | 54,883 | |
Amortization of Intangible Assets and Impairment of Long-Lived Assets | 14,689 | 14,912 | |
Income (Loss) from Operations | 27,656 | 39,971 | |
Equity in earnings of affiliates, net | 4,661 | 2,604 | |
Interest Expense, Net | (13,090) | (10,702) | |
Non-operating pension and postretirement benefit income, net | 31,845 | 50,505 | |
Gain on marketable equity securities, net | 18,022 | 46,912 | |
Other Income, Net | 3,083 | 2,876 | |
Income Before Income Taxes | 72,177 | 132,166 | |
Depreciation of property, plant and equipment | 20,025 | 19,475 | |
Pension Service Cost | 9,243 | 6,031 | |
Identifiable Assets | 4,072,219 | $ 4,127,829 | |
Marketable equity securities | 603,543 | 609,921 | |
Investments in Affiliates | 194,960 | 186,419 | |
Prepaid Pension Cost | 1,671,477 | 1,658,046 | |
Total Assets | 6,542,199 | 6,582,215 | |
Amortization of Intangible Assets | 13,944 | 14,912 | |
Impairment of long-lived assets | 745 | 0 | |
Operating Segments [Member] | Education [Member] | |||
Segment Reporting Information [Line Items] | |||
Operating Revenues | 378,041 | 358,012 | |
Income (Loss) from Operations before Amortization of Intangible Assets and Impairment of Long-Lived Assets | 27,456 | 24,558 | |
Amortization of Intangible Assets and Impairment of Long-Lived Assets | 4,416 | 4,146 | |
Income (Loss) from Operations | 23,040 | 20,412 | |
Depreciation of property, plant and equipment | 8,968 | 8,505 | |
Pension Service Cost | 2,198 | 2,536 | |
Identifiable Assets | 1,952,768 | 1,987,042 | |
Amortization of Intangible Assets | 3,939 | 4,146 | |
Impairment of long-lived assets | 477 | 0 | |
Operating Segments [Member] | Education [Member] | Reportable Subsegments [Member] | Kaplan International [Member] | |||
Segment Reporting Information [Line Items] | |||
Operating Revenues | 227,076 | 204,513 | |
Income (Loss) from Operations before Amortization of Intangible Assets and Impairment of Long-Lived Assets | 21,301 | 20,564 | |
Income (Loss) from Operations | 21,301 | 20,564 | |
Depreciation of property, plant and equipment | 6,330 | 5,755 | |
Pension Service Cost | 80 | 72 | |
Identifiable Assets | 1,449,063 | 1,479,833 | |
Operating Segments [Member] | Education [Member] | Reportable Subsegments [Member] | Higher Education [Member] | |||
Segment Reporting Information [Line Items] | |||
Operating Revenues | 76,345 | 75,808 | |
Income (Loss) from Operations before Amortization of Intangible Assets and Impairment of Long-Lived Assets | 6,661 | 5,037 | |
Income (Loss) from Operations | 6,661 | 5,037 | |
Depreciation of property, plant and equipment | 996 | 1,020 | |
Pension Service Cost | 922 | 1,081 | |
Identifiable Assets | 182,720 | 174,033 | |
Operating Segments [Member] | Education [Member] | Reportable Subsegments [Member] | Supplemental Education [Member] | |||
Segment Reporting Information [Line Items] | |||
Operating Revenues | 73,587 | 76,304 | |
Income (Loss) from Operations before Amortization of Intangible Assets and Impairment of Long-Lived Assets | 3,751 | 3,371 | |
Income (Loss) from Operations | 3,751 | 3,371 | |
Depreciation of property, plant and equipment | 1,509 | 1,639 | |
Pension Service Cost | 1,024 | 1,182 | |
Identifiable Assets | 256,050 | 268,499 | |
Operating Segments [Member] | Education [Member] | Kaplan Corporate and Other [Member] | |||
Segment Reporting Information [Line Items] | |||
Operating Revenues | 5,375 | 4,345 | |
Income (Loss) from Operations before Amortization of Intangible Assets and Impairment of Long-Lived Assets | (4,416) | (4,433) | |
Income (Loss) from Operations | (8,832) | (8,579) | |
Depreciation of property, plant and equipment | 133 | 91 | |
Pension Service Cost | 172 | 201 | |
Identifiable Assets | 64,935 | 64,677 | |
Operating Segments [Member] | Education [Member] | Intersubsegment Eliminations [Member] | |||
Segment Reporting Information [Line Items] | |||
Operating Revenues | (4,342) | (2,958) | |
Income (Loss) from Operations before Amortization of Intangible Assets and Impairment of Long-Lived Assets | 159 | 19 | |
Income (Loss) from Operations | 159 | 19 | |
Operating Segments [Member] | Television Broadcasting [Member] | |||
Segment Reporting Information [Line Items] | |||
Operating Revenues | 112,877 | 123,419 | |
Income (Loss) from Operations before Amortization of Intangible Assets and Impairment of Long-Lived Assets | 29,945 | 41,258 | |
Amortization of Intangible Assets and Impairment of Long-Lived Assets | 1,362 | 1,360 | |
Income (Loss) from Operations | 28,583 | 39,898 | |
Depreciation of property, plant and equipment | 3,036 | 3,289 | |
Pension Service Cost | 860 | 926 | |
Identifiable Assets | 424,185 | 431,084 | |
Operating Segments [Member] | Manufacturing [Member] | |||
Segment Reporting Information [Line Items] | |||
Operating Revenues | 114,584 | 115,940 | |
Income (Loss) from Operations before Amortization of Intangible Assets and Impairment of Long-Lived Assets | 12,190 | 15,138 | |
Amortization of Intangible Assets and Impairment of Long-Lived Assets | 4,862 | 5,163 | |
Income (Loss) from Operations | 7,328 | 9,975 | |
Depreciation of property, plant and equipment | 2,282 | 2,428 | |
Pension Service Cost | 275 | 328 | |
Identifiable Assets | 488,192 | 486,487 | |
Operating Segments [Member] | Healthcare [Member] | |||
Segment Reporting Information [Line Items] | |||
Operating Revenues | 102,059 | 67,255 | |
Income (Loss) from Operations before Amortization of Intangible Assets and Impairment of Long-Lived Assets | 3,890 | 7,288 | |
Amortization of Intangible Assets and Impairment of Long-Lived Assets | 954 | 929 | |
Income (Loss) from Operations | 2,936 | 6,359 | |
Depreciation of property, plant and equipment | 1,104 | 410 | |
Pension Service Cost | 4,357 | 186 | |
Identifiable Assets | 255,542 | 249,845 | |
Operating Segments [Member] | Automotive [Member] | |||
Segment Reporting Information [Line Items] | |||
Operating Revenues | 232,561 | 150,967 | |
Income (Loss) from Operations before Amortization of Intangible Assets and Impairment of Long-Lived Assets | 10,843 | 7,078 | |
Amortization of Intangible Assets and Impairment of Long-Lived Assets | 0 | 0 | |
Income (Loss) from Operations | 10,843 | 7,078 | |
Depreciation of property, plant and equipment | 1,113 | 777 | |
Pension Service Cost | 5 | 6 | |
Identifiable Assets | 440,036 | 427,221 | |
Operating Segments [Member] | Other Businesses [Member] | |||
Segment Reporting Information [Line Items] | |||
Operating Revenues | 92,008 | 99,617 | |
Income (Loss) from Operations before Amortization of Intangible Assets and Impairment of Long-Lived Assets | (27,906) | (27,430) | |
Amortization of Intangible Assets and Impairment of Long-Lived Assets | 3,095 | 3,314 | |
Income (Loss) from Operations | (31,001) | (30,744) | |
Depreciation of property, plant and equipment | 3,369 | 3,915 | |
Pension Service Cost | 572 | 520 | |
Identifiable Assets | 445,409 | 475,583 | |
Corporate Office [Member] | |||
Segment Reporting Information [Line Items] | |||
Operating Revenues | 0 | 0 | |
Income (Loss) from Operations before Amortization of Intangible Assets and Impairment of Long-Lived Assets | (14,073) | (13,007) | |
Amortization of Intangible Assets and Impairment of Long-Lived Assets | 0 | 0 | |
Income (Loss) from Operations | (14,073) | (13,007) | |
Depreciation of property, plant and equipment | 153 | 151 | |
Pension Service Cost | 976 | 1,529 | |
Identifiable Assets | 66,087 | $ 70,567 | |
Intersegment Elimination [Member] | |||
Segment Reporting Information [Line Items] | |||
Operating Revenues | $ (584) | $ (489) |