Document_and_Entity_Informatio
Document and Entity Information (USD $) | 12 Months Ended | ||
In Billions, except Share data, unless otherwise specified | Dec. 31, 2014 | Feb. 12, 2015 | Jun. 30, 2014 |
Document And Entity Information [Abstract] | |||
Document Type | 10-K | ||
Amendment Flag | FALSE | ||
Document Period End Date | 31-Dec-14 | ||
Document Fiscal Year Focus | 2014 | ||
Document Fiscal Period Focus | FY | ||
Trading Symbol | HMHC | ||
Entity Registrant Name | Houghton Mifflin Harcourt Co | ||
Entity Central Index Key | 1580156 | ||
Current Fiscal Year End Date | -19 | ||
Entity Well-known Seasoned Issuer | Yes | ||
Entity Current Reporting Status | Yes | ||
Entity Voluntary Filers | No | ||
Entity Filer Category | Large Accelerated Filer | ||
Entity Common Stock, Shares Outstanding | 142,172,861 | ||
Entity Public Float | $2.10 |
Consolidated_Balance_Sheets
Consolidated Balance Sheets (USD $) | Dec. 31, 2014 | Dec. 31, 2013 |
In Thousands, unless otherwise specified | ||
Current assets | ||
Cash and cash equivalents | $456,581 | $313,628 |
Short-term investments | 286,764 | 111,721 |
Accounts receivable, net of allowance for bad debts and book returns of $27.8 million and $40.6 million, respectively | 255,669 | 318,101 |
Inventories | 183,961 | 182,194 |
Deferred income taxes | 20,459 | 29,842 |
Prepaid expenses and other assets | 18,665 | 16,130 |
Total current assets | 1,222,099 | 971,616 |
Property, plant, and equipment, net | 138,362 | 140,848 |
Pre-publication costs, net | 236,995 | 269,488 |
Royalty advances to authors, net of allowance of $55.0 million and $41.2 million, respectively | 46,777 | 46,881 |
Goodwill | 532,921 | 531,786 |
Other intangible assets, net | 801,969 | 919,994 |
Deferred income taxes | 3,705 | |
Other assets | 28,279 | 29,773 |
Total assets | 3,011,107 | 2,910,386 |
Current liabilities | ||
Current portion of long-term debt | 67,500 | 2,500 |
Accounts payable | 51,266 | 105,012 |
Royalties payable | 80,089 | 65,387 |
Salaries, wages, and commissions payable | 59,733 | 29,945 |
Deferred revenue | 157,016 | 107,905 |
Interest payable | 47 | 55 |
Severance and other charges | 5,928 | 8,184 |
Accrued postretirement benefits | 2,037 | 2,141 |
Other liabilities | 27,015 | 32,002 |
Total current liabilities | 450,631 | 353,131 |
Long-term debt | 175,625 | 243,125 |
Royalties payable | 1,520 | |
Long-term deferred revenue | 370,103 | 189,258 |
Accrued pension benefits | 18,525 | 24,405 |
Accrued postretirement benefits | 26,500 | 23,860 |
Deferred income taxes | 112,220 | 116,999 |
Other liabilities | 97,823 | 107,812 |
Total liabilities | 1,251,427 | 1,060,110 |
Commitments and contingencies (Note 13) | ||
Stockholders' equity | ||
Preferred stock, $0.01 par value: 20,000,000 shares authorized; no shares issued and outstanding at December 31, 2014 and 2013 | ||
Common stock, $0.01 par value: 380,000,000 shares authorized; 142,000,019 and 140,044,400 shares issued at December 31, 2014 and 2013, respectively; and 141,917,997 and 139,962,378 shares outstanding at December 31, 2014 and 2013, respectively | 1,420 | 1,400 |
Treasury stock, 82,022 shares as of December 31, 2014 and 2013 | 0 | 0 |
Capital in excess of par value | 4,784,962 | 4,750,589 |
Accumulated deficit | -2,999,913 | -2,888,422 |
Accumulated other comprehensive loss | -26,789 | -13,291 |
Total stockholders' equity | 1,759,680 | 1,850,276 |
Total liabilities and stockholders' equity | $3,011,107 | $2,910,386 |
Consolidated_Balance_Sheets_Pa
Consolidated Balance Sheets (Parenthetical) (USD $) | Dec. 31, 2014 | Dec. 31, 2013 |
In Millions, except Share data, unless otherwise specified | ||
Statement of Financial Position [Abstract] | ||
Accounts receivable, allowance for bad debts and book returns | $27.80 | $40.60 |
Royalty advances to authors, allowance | $55 | $41.20 |
Preferred stock, par value | $0.01 | $0.01 |
Preferred stock, shares authorized | 20,000,000 | 20,000,000 |
Preferred stock, shares issued | 0 | 0 |
Preferred stock, shares outstanding | 0 | 0 |
Common stock, par value | $0.01 | $0.01 |
Common stock, shares authorized | 380,000,000 | 380,000,000 |
Common stock, shares issued | 142,000,019 | 140,044,400 |
Common stock, shares outstanding | 141,917,997 | 139,962,378 |
Treasury stock, shares | 82,022 | 82,022 |
Consolidated_Statements_of_Ope
Consolidated Statements of Operations (USD $) | 12 Months Ended | ||
In Thousands, except Share data, unless otherwise specified | Dec. 31, 2014 | Dec. 31, 2013 | Dec. 31, 2012 |
Net sales | $1,372,316 | $1,378,612 | $1,285,641 |
Costs and expenses | |||
Cost of sales, excluding pre-publication and publishing rights amortization | 588,726 | 585,059 | 515,948 |
Pre-publication amortization | 129,693 | 121,715 | 137,729 |
Cost of sales | 824,043 | 846,362 | 831,424 |
Selling and administrative | 612,535 | 580,887 | 533,462 |
Other intangible asset amortization | 12,170 | 18,968 | 54,815 |
Impairment charge for investment in preferred stock, intangible assets, pre-publication costs and fixed assets | 1,679 | 9,000 | 8,003 |
Severance and other charges | 7,300 | 10,040 | 9,375 |
Gain on bargain purchase | -30,751 | ||
Operating loss | -85,411 | -86,645 | -120,687 |
Other income (expense) | |||
Interest expense | -18,245 | -21,344 | -123,197 |
Change in fair value of derivative instruments | -1,593 | -252 | 1,688 |
Loss on extinguishment of debt | 0 | -598 | |
Loss before reorganization items and taxes | -105,249 | -108,839 | -242,196 |
Reorganization items, net | -149,114 | ||
Income tax expense (benefit) | 6,242 | 2,347 | -5,943 |
Net loss | -111,491 | -111,186 | -87,139 |
Net loss per share attributable to common stockholders | |||
Basic | ($0.79) | ($0.79) | ($0.26) |
Diluted | ($0.79) | ($0.79) | ($0.26) |
Weighted average shares outstanding | |||
Basic | 140,594,689 | 139,928,650 | 340,918,128 |
Diluted | 140,594,689 | 139,928,650 | 340,918,128 |
Publishing Rights [Member] | |||
Costs and expenses | |||
Publishing rights amortization | $105,624 | $139,588 | $177,747 |
Consolidated_Statements_of_Com
Consolidated Statements of Comprehensive Loss (USD $) | 12 Months Ended | ||
In Thousands, unless otherwise specified | Dec. 31, 2014 | Dec. 31, 2013 | Dec. 31, 2012 |
Statement of Comprehensive Income [Abstract] | |||
Net loss | ($111,491) | ($111,186) | ($87,139) |
Other comprehensive income (loss) | |||
Foreign currency translation adjustments | -29 | 404 | -465 |
Change in pension and benefit plan liability, net of tax expense of $4,977 and $85 for 2013 and 2012, respectively | -13,380 | 7,846 | 2,378 |
Unrealized gain (loss) on short-term investments, net of tax | -89 | -13 | 12 |
Other comprehensive income (loss), net of taxes | -13,498 | 8,237 | 1,925 |
Comprehensive loss | ($124,989) | ($102,949) | ($85,214) |
Consolidated_Statements_of_Com1
Consolidated Statements of Comprehensive Loss (Parenthetical) (USD $) | 12 Months Ended | |
In Thousands, unless otherwise specified | Dec. 31, 2013 | Dec. 31, 2012 |
Statement of Comprehensive Income [Abstract] | ||
Change in pension and benefit plan liability, tax expense | $4,977 | $85 |
Consolidated_Statements_of_Cas
Consolidated Statements of Cash Flows (USD $) | 12 Months Ended | ||
In Thousands, unless otherwise specified | Dec. 31, 2014 | Dec. 31, 2013 | Dec. 31, 2012 |
Cash flows from operating activities | |||
Net loss | ($111,491) | ($111,186) | ($87,139) |
Adjustments to reconcile net loss to net cash provided by operating activities | |||
Gain on bargain purchase | -30,751 | ||
Gain on sale of assets | -2,720 | ||
Depreciation and amortization expense | 319,777 | 341,979 | 428,422 |
Amortization of debt discount and deferred financing costs | 4,750 | 4,797 | 24,584 |
Deferred income taxes (benefit) | 899 | -3,121 | -10,076 |
Noncash stock-based compensation expense | 11,376 | 9,524 | 6,254 |
Noncash issuance of warrants | 10,747 | ||
Reorganization items | -149,114 | ||
Loss on extinguishment of debt | 0 | 598 | |
Impairment charge for investment in preferred stock, intangible assets, pre-publication costs and fixed assets | 1,679 | 9,000 | 8,003 |
Change in fair value of derivative instruments | 1,593 | 252 | -1,688 |
Changes in operating assets and liabilities, net of acquisitions | |||
Accounts receivable | 65,519 | -88,029 | 25,826 |
Inventories | -1,763 | 15,419 | 44,549 |
Accounts payable and accrued expenses | -3,432 | 1,076 | -44,594 |
Royalties, net | 13,286 | 5,851 | 9,478 |
Deferred revenue | 229,105 | 702 | -54,615 |
Interest payable | -8 | -32 | 4,912 |
Severance and other charges | -5,210 | -2,759 | -17,460 |
Accrued pension and postretirement benefits | -16,724 | -15,057 | -19,710 |
Other, net | -18,313 | -9,091 | -12,916 |
Net cash provided by operating activities | 491,043 | 157,203 | 104,802 |
Cash flows from investing activities | |||
Proceeds from restricted cash accounts | 26,495 | ||
Proceeds from sales and maturities of short-term investments | 134,275 | 251,168 | 19,575 |
Purchases of short-term investments | -310,149 | -217,855 | -165,603 |
Additions to pre-publication costs | -115,509 | -126,718 | -114,522 |
Additions to property, plant, and equipment | -67,145 | -59,803 | -50,943 |
Proceeds from sale of assets | 4,825 | ||
Acquisition of business, net of cash acquired | -9,091 | -18,695 | -11,000 |
Investment in preferred stock | -1,500 | ||
Net cash (used in) provided by investing activities | -367,619 | -168,578 | -295,998 |
Cash flows from financing activities | |||
Proceeds from term loan | 250,000 | ||
Payments of long-term debt | -2,500 | -2,500 | -12,750 |
Tax withholding payments related to net share settlements of restricted stock units | -723 | ||
Proceeds from stock option exercises | 22,752 | ||
Payments of deferred financing fees | -26,586 | ||
Payment of capital restructuring costs | -104,000 | ||
Payments of contingent consideration | -1,575 | ||
Net cash provided by (used in) financing activities | 19,529 | -4,075 | 106,664 |
Net increase (decrease) in cash and cash equivalents | 142,953 | -15,450 | -84,532 |
Cash and cash equivalents | |||
Beginning of period | 313,628 | 329,078 | 413,610 |
Net (decrease) increase in cash and cash equivalents | 142,953 | -15,450 | -84,532 |
End of period | 456,581 | 313,628 | 329,078 |
Supplementary disclosure of cash flow information | |||
Income taxes paid | 2,336 | 1,220 | 7,699 |
Interest paid | 12,328 | 17,595 | 92,481 |
Property, plant, and equipment acquired under capital leases (non cash) | 3,495 | 4,289 | 4,799 |
Pre-publication Costs [Member] | |||
Adjustments to reconcile net loss to net cash provided by operating activities | |||
Impairment charge for investment in preferred stock, intangible assets, pre-publication costs and fixed assets | 1,061 | ||
Supplementary disclosure of cash flow information | |||
Costs included in accounts payable (non cash) | 6,102 | 24,499 | 15,070 |
Property, Plant, and Equipment [Member] | |||
Adjustments to reconcile net loss to net cash provided by operating activities | |||
Impairment charge for investment in preferred stock, intangible assets, pre-publication costs and fixed assets | 7,439 | ||
Supplementary disclosure of cash flow information | |||
Costs included in accounts payable (non cash) | $2,663 | $6,162 | $3,659 |
Consolidated_Statements_of_Sto
Consolidated Statements of Stockholders' Equity (USD $) | Total | Common Stock [Member] | Treasury Stock [Member] | Capital in Excess of Par Value [Member] | Accumulated Deficit [Member] | Accumulated Other Comprehensive Income (Loss) [Member] |
In Thousands, except Share data | ||||||
Beginning balance at Dec. 31, 2011 | ($674,552) | $567 | $2,038,431 | ($2,690,097) | ($23,453) | |
Beginning balance, shares at Dec. 31, 2011 | 567,272,470 | |||||
Net loss | -87,139 | -87,139 | ||||
Other comprehensive income (loss), net | 1,925 | 1,925 | ||||
Issuance of common stock | 1,750,000 | 1,400 | 1,748,600 | |||
Issuance of common stock, shares | 140,000,000 | |||||
Gain on debt-for-equity exchange | 936,466 | -567 | 937,033 | |||
Gain on debt-for-equity exchange, shares | -567,272,470 | |||||
Issuance of warrants | 10,747 | 10,747 | ||||
Stock compensation | 6,254 | 6,254 | ||||
Addition of treasury stock | 0 | 0 | 0 | 0 | 0 | 0 |
Ending balance at Dec. 31, 2012 | 1,943,701 | 1,400 | 4,741,065 | -2,777,236 | -21,528 | |
Ending balance, shares at Dec. 31, 2012 | 140,000,000 | |||||
Net loss | -111,186 | -111,186 | ||||
Other comprehensive income (loss), net | 8,237 | 8,237 | ||||
Issuance of common stock for vesting of restricted stock units, shares | 44,400 | |||||
Stock compensation | 9,524 | 9,524 | ||||
Ending balance at Dec. 31, 2013 | 1,850,276 | 1,400 | 4,750,589 | -2,888,422 | -13,291 | |
Ending balance, shares at Dec. 31, 2013 | 140,044,400 | |||||
Net loss | -111,491 | -111,491 | ||||
Other comprehensive income (loss), net | -13,498 | -13,498 | ||||
Issuance of common stock for vesting of restricted stock units | 1 | -1 | ||||
Issuance of common stock for vesting of restricted stock units, shares | 95,553 | |||||
Issuance of common stock for exercise of stock options | 23,740 | 19 | 23,721 | |||
Issuance of common stock for exercise of stock option, shares | 1,876,566 | 1,860,066 | ||||
Stock withheld to cover tax withholdings requirements upon vesting of restricted stock units | -723 | -723 | ||||
Stock withheld to cover tax withholdings requirements upon vesting of restricted stock units, shares | 0 | 0 | 0 | 0 | 0 | 0 |
Stock compensation | 11,376 | 11,376 | ||||
Ending balance at Dec. 31, 2014 | $1,759,680 | $1,420 | $4,784,962 | ($2,999,913) | ($26,789) | |
Ending balance, shares at Dec. 31, 2014 | 142,000,019 |
Consolidated_Statements_of_Sto1
Consolidated Statements of Stockholders' Equity (Parenthetical) (USD $) | 12 Months Ended | |
In Thousands, except Share data, unless otherwise specified | Dec. 31, 2013 | Dec. 31, 2012 |
Other comprehensive income (loss), tax expense | $4,977 | $85 |
Gain on debt-for-equity exchange, tax expense | 73,801 | |
Addition of treasury stock, shares | 82,022 | |
Common Stock [Member] | ||
Gain on debt-for-equity exchange, tax expense | 73,801 | |
Capital in Excess of Par Value [Member] | ||
Gain on debt-for-equity exchange, tax expense | 73,801 | |
Accumulated Other Comprehensive Income (Loss) [Member] | ||
Other comprehensive income (loss), tax expense | $4,977 | $85 |
Basis_of_Presentation
Basis of Presentation | 12 Months Ended | |
Dec. 31, 2014 | ||
Accounting Policies [Abstract] | ||
Basis of Presentation | 1 | Basis of Presentation |
Houghton Mifflin Harcourt Company, formerly known as HMH Holdings (Delaware), Inc. (“HMH”, “Houghton Mifflin Harcourt”, “we”, “us”, “our”, or the “Company”), is a global learning company, specializing in education solutions across a variety of media, delivering content, services and technology to over 50 million students in over 150 countries worldwide. We deliver our offerings to both educational institutions and consumers around the world. In the United States, we are the leading provider of Kindergarten through twelfth grade (K-12) educational content by market share. We believe that nearly every current K-12 student in the United States has utilized our content during the course of his or her education. As a result, we believe that we have an established reputation with students and educators that is difficult for others to replicate and positions us to also provide broader content and services to serve their learning needs beyond the classroom. We believe our long-standing reputation and well-known brands enable us to capitalize on consumer and digital trends in the education market through our existing and developing channels. Furthermore, since 1832, we have published trade and reference materials, including adult and children’s fiction and non-fiction books that have won industry awards such as the Pulitzer Prize, Newbery and Caldecott medals and National Book Award, all of which are widely known. | ||
The consolidated December 31, 2014 and 2013 financial statements of HMH include the accounts of all of our wholly-owned subsidiaries as of and for the periods ended December 31, 2014, December 31, 2013 and December 31, 2012. | ||
The accompanying consolidated financial statements have been prepared in accordance with accounting principles generally accepted in the United States of America (“GAAP”). All intercompany accounts and transactions have been eliminated. | ||
During the first quarter of 2014, we recorded an out-of-period correction of approximately $1.1 million reducing net sales and increasing deferred revenue that should have been deferred previously. In addition, during the first quarter of 2014, we recorded approximately $3.5 million of incremental expense, primarily commissions, related to the prior year. These out-of-period corrections had no impact on our debt covenant compliance. Management believes these out-of-period corrections are not material to the current period financial statements or any previously issued financial statements. Additionally, we revised previously reported balance sheet amounts to severance and other charges of $7.3 million, which has been reclassified as long-term and to current deferred revenue of $5.2 million which has also been reclassified as long-term. The revision was not material to the reported consolidated balance sheet for any previously filed periods. | ||
During the fourth quarter of 2013, we recorded an out-of-period correction of approximately $5.7 million of additional net sales that was deferred and should have been recognized previously in 2011 ($4.5 million), 2012 ($0.9 million), and the first nine months of 2013 ($0.3 million). In addition, during 2013, we recorded approximately $2.6 million of incremental expense related to prior years. These out-of-period corrections had no impact on cash or debt covenants compliance. Management believes these out-of-period corrections are not material to the current period financial statements or any previously issued financial statements. | ||
Seasonality and Comparability | ||
Our net sales, operating profit and operating cash flows are impacted by the inherent seasonality of the academic calendar. Consequently, the performance of our businesses may not be comparable quarter to consecutive quarter and should be considered on the basis of results for the whole year or by comparing results in a quarter with results in the same quarter for the previous year. | ||
Schools make most of their purchases in the second and third quarters of the calendar year in preparation for the beginning of the school year. Thus, over the past three years, approximately 67% of consolidated net sales have historically been realized in the second and third quarters. Sales of K-12 instructional materials and customized testing products are also cyclical, with some years offering more sales opportunities than others. The amount of funding available at the state level for educational materials also has a significant effect on year-to-year net sales. Although the loss of a single customer would not have a material adverse effect on our business, schedules of school adoptions and market acceptance of our products can materially affect year-to-year net sales performance. | ||
Chapter 11 Reorganization | ||
On May 10, 2012, we entered into a Restructuring Support Agreement (“Plan Support Agreement”) with consenting creditors holding greater than 74% of the principal amount of the then-outstanding senior secured indebtedness of the Company and with equity owners holding approximately 64% of the Company’s then-outstanding common stock. The consenting creditors agreed to support the Company’s Pre-Packaged Chapter 11 Plan of Reorganization (“Plan”). Pursuant to the Plan Support Agreement, the Company agreed to use its best efforts to (i) support and complete the restructuring and all transactions contemplated by the Plan, (ii) take any and all necessary and appropriate actions in furtherance of the restructuring contemplated under the Plan, (iii) complete the restructuring and all transactions contemplated under the Plan within set time-frames, (iv) obtain any and all required regulatory and/or third-party approvals for the restructuring, and (v) not directly or indirectly, seek, solicit, support, or engage in the negotiation or formulation of alternate plans of reorganization that were inconsistent with the reorganization as contemplated by the Plan Support Agreement. | ||
On May 21, 2012 (the “Petition Date”), the U.S. based entities that borrowed or guaranteed the debt of the Company (collectively the “Debtors”), filed voluntary petitions for relief under Chapter 11 of the United States Bankruptcy Code (“Chapter 11”) in the United States Bankruptcy Court for the Southern District of New York (“Court”). The Debtors also concurrently filed the Plan, the Disclosure Statement in support of the Plan and filed various motions seeking relief to continue operations. Following the Petition Date, the Debtors operated their business as “debtors in possession” (“DIP”) under the jurisdiction of the Court and in accordance with the applicable provisions of the Bankruptcy Code and orders of the Court. Under Chapter 11, certain claims against us in existence before the Petition Date were stayed while we operated our business as a DIP, including any actions that might be commenced with regards to secured claims, although the holders of such claims had the right to move the Court for relief from the stay. Subsequent to the Petition Date, these claims were reflected in the balance sheet as liabilities subject to compromise. Secured claims were secured primarily by liens on the Company’s accounts receivable. Additional claims (liabilities subject to compromise) could have potentially arisen after the filing date resulting from rejection of executory contracts or from the determination by the Court (or agreed to by parties in interest). | ||
On June 22, 2012, the Company successfully emerged from bankruptcy as a reorganized company pursuant to the Plan. Ultimately, the Debtors did not reject any executory contracts during the bankruptcy case, and the Company continues to review and reconcile claims that were filed against it by creditors. | ||
Stock Split and Name Change | ||
The Board of Directors approved a 2-for-1 stock split of the Company’s common stock, which occurred on October 22, 2013. In addition, the Board of Directors and stockholders approved an increase to the number of authorized shares of preferred stock and common stock to 20,000,000 shares authorized and 380,000,000 shares authorized, respectively. The accompanying financial statements and notes to the financial statements give retroactive effect to the stock split for all periods presented. | ||
On October 22, 2013, the Company changed its name from “HMH Holdings (Delaware), Inc.” to “Houghton Mifflin Harcourt Company.” |
Chapter_11_Reorganization_Disc
Chapter 11 Reorganization Disclosures | 12 Months Ended | ||||||||||||
Dec. 31, 2014 | |||||||||||||
Reorganizations [Abstract] | |||||||||||||
Chapter 11 Reorganization Disclosures | 2 | Chapter 11 Reorganization Disclosures | |||||||||||
As discussed in Note 1, the Company filed voluntary petitions for relief under Chapter 11. On June 21, 2012, the Bankruptcy Court entered an order confirming and approving the Plan for the Debtors. Subsequently, the Plan became effective and the transactions contemplated under the Plan were consummated on June 22, 2012. | |||||||||||||
Subsequent to the Petition Date, the provisions in GAAP guidance for reorganizations applied to the Company’s financial statements while it operated under the provisions of Chapter 11. The accounting guidance did not change the application of GAAP in the preparation of financial statements. However, it does require that the financial statements, for periods including and subsequent to the filing of the Chapter 11 petition, distinguish transactions and events that are directly associated with the reorganization from the ongoing operations of the business. Accordingly, all transactions (including, but not limited to, all professional fees, realized gains and losses and provisions for losses) directly associated with the reorganization and restructuring of our businesses are reported separately in our financial statements. All such expense or income amounts are reported in reorganization items in the accompanying consolidated statements of operations for the year ended December 31, 2012. | |||||||||||||
Summary of Emergence | |||||||||||||
On June 22, 2012, the Company successfully emerged from bankruptcy as a reorganized company pursuant to the Plan. The financial restructuring realized by the confirmation of the Plan was accomplished through a debt-for-equity exchange. The Plan deleveraged the Company’s balance sheet by eliminating the Company’s secured indebtedness in exchange for new equity in the Company. Existing stockholders, in their capacity as stockholders, received warrants for the new equity in the Company in exchange for the existing equity. | |||||||||||||
Upon the Company’s emergence from Chapter 11 bankruptcy proceedings on June 22, 2012, the Company was not required to apply fresh-start accounting based on U.S. GAAP guidance for reorganizations due to the fact that the pre-petition holders who owned more than 50% of the Company’s outstanding common stock immediately before confirmation of the Plan received more than 50% of the Company’s outstanding common stock upon emergence. Accordingly, a new reporting entity was not created for accounting purposes. | |||||||||||||
Below is a summary of the significant transactions affecting the Company’s capital structure as a result of the effectiveness of the Plan. | |||||||||||||
Equity Transactions | |||||||||||||
On June 22, 2012, pursuant to the Plan, all of the issued and outstanding shares of common stock of the Company, including all options, warrants or any other agreements to acquire shares of common stock of the Company that existed prior to the Petition Date, were cancelled and in exchange, holders of such interests received distributions pursuant to the terms of the Plan. The distributions received by holders of interests in our common stock prior to the petition date on June 22, 2012 pursuant to the terms of the Plan included adequate protection payments and conversion fees of approximately $60.1 million and $26.1 million, respectively. These amounts represent only the portion attributable to the existing shareholders prior to the petition date. There were $69.7 million of adequate protection payments and $30.3 million of conversion fee payments made in total. Following the emergence on June 22, 2012, the authorized capital stock of the Company consists of (i) 380,000,000 shares of common stock and (ii) 20,000,000 shares of preferred stock, $0.01 par value per share. There are no other outstanding obligations, warrants, options, or other rights to subscribe for or purchase from the Company any class of capital stock of the Company. | |||||||||||||
A Management Incentive Plan (“MIP”) became effective upon emergence. The MIP provides for grants of options and restricted stock at a strike price equal to or greater than the fair value per share of common stock as of the date of the grant and reserved for management and employees up to 10% of the new common stock of the Company. On June 22, 2012, in connection with our emergence from bankruptcy, the Company granted 9,251,462 stock options to executive officers with an exercise price of $12.50. Each of the stock options granted have an exercise price equal to or greater than the fair value on the date of grant and generally vest over a three or four year period. Also, on June 22, 2012, the Company granted 24,000 restricted stock units to independent directors which vest after one year. | |||||||||||||
Debt Transactions | |||||||||||||
On June 22, 2012, the Company’s creditors converted the First Lien Credit Agreement consisting of the then-existing first lien term loan (the “Term Loan”) with an aggregate outstanding principal balance of $2.6 billion and the then-existing first lien revolving loan facility (the “Revolving Loan”) with an aggregate outstanding principal balance of $235.8 million, and the outstanding $300.0 million principal amount of 10.5% Senior Secured Notes due 2019 (the “10.5% Senior Notes”) to 100 percent pro rata ownership of the Company’s common stock, subject to dilution pursuant to the MIP and the exercise of any existing common stockholder’s pro rata share of warrants to purchase 5% of the common stock of the Company pursuant to the Plan, and received $30.3 million in cash. | |||||||||||||
In connection with the Chapter 11 filing on May 22, 2012, the Company entered into a new $500.0 million senior secured credit facility (“DIP Facility”), which converted into an exit facility on the effective date of the emergence from Chapter 11. This exit facility consists of a $250.0 million revolving credit facility, which is secured by the Company’s accounts receivable and inventory, and a $250.0 million term loan credit facility. The proceeds from the initial borrowings under the term loan credit facility were used to fund the costs of the reorganization and provide post-closing working capital to the Company. | |||||||||||||
A summary of the transactions affecting the Company’s debt balances is as follows: | |||||||||||||
Debt balance prior to emergence from bankruptcy (including accrued interest) | $ | (3,142,234 | ) | ||||||||||
Exchange of debt for new common shares | 1,750,000 | ||||||||||||
Elimination of debt discount and deferred financing fees | 98,352 | ||||||||||||
Adequate protection payments | 69,701 | ||||||||||||
Conversion fees | 30,299 | ||||||||||||
Professional fees | 21,726 | ||||||||||||
(Gain) loss on extinguishment | $ | (1,172,156 | ) | ||||||||||
Reorganization Items | |||||||||||||
Reorganization items represent expense or income amounts that were recorded in the consolidated financial statements as a result of the bankruptcy proceedings. Reorganization items were incurred starting with the date of the bankruptcy filing through the date of bankruptcy emergence. Approximately 86.2% of the (gain) loss on extinguishment was allocated to capital in excess of par value in the consolidated balance sheet based on the percentage of the Company’s creditors that converted their debt to equity who were also equityholders as of the date of the bankruptcy filing. The remaining portion of the (gain) loss on extinguishment of debt was allocated to reorganization items, net in the consolidated statement of operations based on the percentage of the Company’s creditors that converted their debt to equity who did not have a pre-existing equity ownership in the Company as of the date of the bankruptcy filing. The gain from reorganization items for the year ended December 31, 2012 were as follows: | |||||||||||||
Total | Adjusted to | Reorganization | |||||||||||
Capital in excess | items, net | ||||||||||||
of par value | |||||||||||||
Debt to equity conversion | $ | (1,392,234 | ) | $ | (1,199,549 | ) | $ | (192,685 | ) | ||||
Elimination of debt discount and deferred financing fees | 98,352 | 84,740 | 13,612 | ||||||||||
Adequate protection payments | 69,701 | 60,054 | 9,647 | ||||||||||
Conversion fees | 30,299 | 26,106 | 4,193 | ||||||||||
Professional fees | 21,726 | 18,381 | 3,345 | ||||||||||
(Gain) loss on extinguishment | (1,172,156 | ) | (1,010,268 | ) | (161,888 | ) | |||||||
Stock compensation | 2,027 | — | 2,027 | ||||||||||
Issuance of warrants | 10,747 | — | 10,747 | ||||||||||
Reorganization items, net | $ | (1,159,382 | ) | $ | (1,010,268 | ) | $ | (149,114 | ) | ||||
Liabilities Subject to Compromise | |||||||||||||
Certain pre-petition liabilities and indebtedness were subject to compromise under the Plan and were reported at amounts allowed or expected to be allowed by the Court. A summary of liabilities subject to compromise reflected in the consolidated balance sheet as of May 21, 2012 is as follows: | |||||||||||||
May 21, | |||||||||||||
2012 | |||||||||||||
$2,668,690 Term Loan due June 12, 2014 | $ | 2,570,815 | |||||||||||
$235,751 Revolving Loan due December 12, 2013 | 235,751 | ||||||||||||
$300,000 10.5% senior secured notes due June 1, 2019 | 300,000 | ||||||||||||
Accrued interest | 35,668 | ||||||||||||
Total | $ | 3,142,234 | |||||||||||
As of December 31, 2014, 2013 and 2012, there were no liabilities subject to compromise. | |||||||||||||
All pre-petition claims were considered liabilities subject to compromise at May 21, 2012. As discussed above, the Term Loan, the Revolving Loan, the 10.5% Senior Notes, and the associated accrued interest were exchanged for new common stock in the Company. There were no other liabilities subject to compromise as of May 21, 2012. We honored other prepetition obligations, including employee wages and trade payables in the ordinary course of business. |
Significant_Accounting_Policie
Significant Accounting Policies | 12 Months Ended | ||||
Dec. 31, 2014 | |||||
Accounting Policies [Abstract] | |||||
Significant Accounting Policies | 3 | Significant Accounting Policies | |||
Principles of Consolidation | |||||
Our accompanying consolidated financial statements include the results of operations of the Company and our wholly-owned subsidiaries. All material intercompany accounts and transactions are eliminated in consolidation. | |||||
Use of Estimates | |||||
The preparation of financial statements in conformity with accounting principles generally accepted in the United States of America requires the use of estimates, assumptions and judgments by management that affect the reported amounts of assets, liabilities, revenues, expenses, and related disclosure of contingent assets and liabilities in the amounts reported in the financial statements and accompanying notes. On an ongoing basis, we evaluate our estimates and assumptions including, but not limited to, book returns, allowance for bad debts, recoverability of advances to authors, valuation of inventory, depreciation and amortization periods, recoverability of long-term assets such as property, plant, and equipment, capitalized pre-publication costs, other identified intangibles, goodwill, deferred revenue, income taxes, pensions and other postretirement benefits, contingencies, and litigation. We base our estimates on historical experience and on various other assumptions that we believe to be reasonable under the circumstances, the results of which form the basis for making judgments about the carrying value of assets and liabilities that are not readily apparent from other sources. Actual results may differ from those estimates. | |||||
Revenue Recognition | |||||
We derive revenue primarily from the sale of print and digital content and instructional materials, trade books, reference materials, assessment materials and multimedia instructional programs; license fees for book rights, content and software; and services that include test development, test delivery, test scoring, professional development, consulting and training as well as access to hosted interactive content. Revenue is recognized only once persuasive evidence of an arrangement with the customer exists, the sales price is fixed or determinable, delivery of products or services has occurred, title and risk of loss with respect to products have transferred to the customer, all significant obligations, if any, have been performed, and collection is probable. | |||||
We enter into certain contractual arrangements that have multiple elements, one or more of which may be delivered subsequent to the delivery of other elements. These multiple-deliverable arrangements may include print and digital media, professional development services, training, software licenses, access to hosted content, and various services related to the software including but not limited to hosting, maintenance and support, and implementation. For these multiple-element arrangements, we allocate revenue to each deliverable of the arrangement based on the relative selling prices of the deliverables. In such circumstances, we first determine the selling price of each deliverable based on (i) vendor-specific objective evidence of fair value (“VSOE”) if that exists, (ii) third-party evidence of selling price (“TPE”) when VSOE does not exist, or (iii) our best estimate of the selling price when neither VSOE nor TPE exists. Revenue is then allocated to the non-software deliverables as a group and to the software deliverables as a group using the relative selling prices of each of the deliverables in the arrangement, based on the selling price hierarchy. Non-software deliverables include print and digital textbooks and instructional materials, trade books, reference materials, assessment materials and multimedia instructional programs; licenses to book rights and content; access to hosted content; and services including test development, test delivery, test scoring, professional development, consulting and training when those services do not relate to software deliverables. Software deliverables include software licenses, software maintenance and support services, professional services and training when those services relate to software deliverables. | |||||
For the non-software deliverables, we determine the revenue for each deliverable based on its relative selling price in the arrangement and we recognize revenue upon delivery of the product or service, assuming all other revenue recognition criteria have been met. Revenue for test delivery, test scoring and training is recognized when the service has been completed. Revenue for test development, professional development, consulting and training is recognized as the service is provided. Revenue for access to hosted interactive content is recognized ratably over the term of the arrangement. | |||||
For the software deliverables as a group, we recognize revenue in accordance with the authoritative guidance for software revenue recognition. As our software licenses are typically sold with maintenance and support, professional services or training, we use the residual method to determine the amount of software license revenue to be recognized. Under the residual method, arrangement consideration of the software deliverables as a group is allocated to the undelivered elements based upon VSOE of those elements, with the residual amount of the arrangement fee allocated to and recognized as license revenue upon delivery, assuming all other revenue recognition criteria have been met. If VSOE of one or more of the undelivered services or other elements does not exist, all revenues of the software-deliverables arrangement are deferred until delivery of all of those services or other elements has occurred, or until VSOE of each of those services or other elements can be established. | |||||
As products are shipped with right of return, a provision for estimated returns on these sales is made at the time of sale based on historical experience. | |||||
Shipping and handling fees charged to customers are included in net sales. | |||||
Advertising Costs and Sample Expenses | |||||
Advertising costs are charged to selling and administrative expenses as incurred. Advertising costs were $8.6 million, $8.0 million and $6.7 million for the years ended December 31, 2014, 2013 and 2012, respectively. Sample expenses are charged to selling and administrative expenses when the samples are shipped. | |||||
Cash and Cash Equivalents | |||||
Cash and cash equivalents consist primarily of cash in banks and highly liquid investment securities that have maturities of three months or less when purchased. The carrying amount of cash equivalents approximates fair value because of the short term maturity of these investments. | |||||
Short-term Investments | |||||
Short-term investments typically consist of marketable securities with maturities between three and twelve months at the balance sheet date. We have classified all of our short-term investments as available-for-sale at December 31, 2014 and 2013. The investments are reported at fair value, with any unrealized gains or losses excluded from earnings and reported as a separate component of stockholders’ equity as other comprehensive income (loss). | |||||
Accounts Receivable | |||||
Accounts receivable are recorded net of allowances for doubtful accounts and reserves for book returns. In the normal course of business, we extend credit to customers that satisfy predefined criteria. We estimate the collectability of our receivables. Allowances for doubtful accounts are established through the evaluation of accounts receivable aging and prior collection experience to estimate the ultimate collectability of these receivables. Reserves for book returns are based on historical return rates and sales patterns. | |||||
Inventories | |||||
Inventories are stated at the lower of weighted average cost or net realizable value. The level of obsolete and excess inventory is estimated on a program or title level-basis by comparing the number of units in stock with the expected future demand. The expected future demand of a program or title is determined by the copyright year, the previous years’ sales history, the subsequent year’s sales forecast, and known forward-looking trends including our development cycle to replace the title or program and competing titles or programs. | |||||
Property, Plant, and Equipment | |||||
Property, plant, and equipment are stated at cost, or in the case of assets acquired in business combinations, at fair value as of the acquisition date, less accumulated depreciation. Equipment under capital lease is stated at fair value at inception of the lease, less accumulated depreciation. Maintenance and repair costs are charged to expense as incurred, and renewals and improvements that extend the useful life of the assets are capitalized. Depreciation on property, plant, and equipment is calculated using the straight-line method over the estimated useful lives of the assets or, in the case of assets acquired in business combinations, over their remaining lives. Equipment held under capital leases and leasehold improvements are amortized using the straight-line method over the shorter of the lease term or estimated useful life of the asset. Estimated useful lives of property, plant, and equipment are as follows: | |||||
Estimated | |||||
Useful Life | |||||
Building and building equipment | 10 to 35 years | ||||
Machinery and equipment | 2 to 15 years | ||||
Capitalized software | 3 to 5 years | ||||
Leasehold improvements | Lesser of useful life or lease term | ||||
Capitalized Internal-Use and External-Use Software | |||||
Capitalized internal-use and external-use software is included in property, plant and equipment on the consolidated balance sheets. | |||||
We capitalize certain costs related to obtaining or developing computer software for internal use including external customer-facing websites. Costs incurred during the application development stage, including external direct costs of materials and services, and payroll and payroll related costs for employees who are directly associated with the internal-use software project, are capitalized and amortized on a straight-line basis over the expected useful life of the related software. The application development stage includes design of chosen path, software configuration and integration, coding, hardware installation and testing. Costs incurred during the preliminary stage, as well as maintenance, training and upgrades that do not result in additional functionality are expensed as incurred. | |||||
Certain computer software development costs for software that is to be sold or marketed are capitalized in the consolidated balance sheets. Capitalization of computer software development costs begins upon the establishment of technological feasibility. We define the establishment of technological feasibility as a working model. Amortization of capitalized computer software development costs is provided on a product-by-product basis using the straight-line method, beginning upon commercial release of the product, and continuing over the remaining estimated economic life of the product. The carrying amounts of computer software development costs are periodically compared to net realizable value and impairment charges are recorded, as appropriate, when amounts expected to be realized are lower. | |||||
We review internal and external software development costs for impairment. There was no such impairment for the year ended December 31, 2014. For the years ended December 31, 2013 and 2012, software development costs of $7.4 million and $2.6 million, respectively, were impaired. All impairments were included as a charge to the statement of operations in the impairment charge for investment in preferred stock, intangible assets, pre-publication costs and fixed assets caption. | |||||
Pre-publication costs | |||||
We capitalize the art, prepress, manuscript and other costs incurred in the creation of the master copy of a book or other media (the “pre-publication costs”). Pre-publication costs are primarily amortized from the year of sale over five years using the sum-of-the-years-digits method, which is an accelerated method for calculating an asset’s amortization. Under this method, the amortization expense recorded for a pre-publication cost asset is approximately 33% (year 1), 27% (year 2), 20% (year 3), 13% (year 4) and 7% (year 5). This policy is used throughout the Company, except for the Trade Publishing young readers and general interest books, which generally expenses such costs as incurred, and the assessment products, which uses the straight-line amortization method. The amortization methods and periods chosen best reflect the pattern of expected sales generated from individual titles or programs. We periodically evaluate the remaining lives and recoverability of capitalized pre-publication costs, which are often dependent upon program acceptance by state adoption authorities. | |||||
Amortization expense related to pre-publication costs for the years ended December 31, 2014, 2013 and 2012 were $129.7 million, $121.7 million and $137.7 million, respectively. | |||||
There was no impairment for the year ended December 31, 2014. For the years ended December 31, 2013 and 2012, pre-publication costs of $1.1 million, and $0.4 million respectively, were impaired. The impairment was included as a charge to the statement of operations in the impairment charge for investment in preferred stock, intangible assets, pre-publication costs and fixed assets caption. | |||||
Goodwill and indefinite-lived intangible assets | |||||
Goodwill is the excess of the purchase price paid over the fair value of the net assets of the business acquired. Other intangible assets principally consist of branded trademarks and trade names, acquired publishing rights and customer relationships. Goodwill and indefinite-lived intangible assets (certain trade names) are not amortized but are reviewed at least annually for impairment or earlier, if an indication of impairment exists. Recoverability of goodwill and indefinite lived intangibles is evaluated using a two-step process. In the first step, the fair value of a reporting unit is compared to its carrying value. If the fair value of a reporting unit exceeds the carrying value of the net assets assigned to a reporting unit, goodwill is considered not impaired and no further testing is required. If the carrying value of the net assets assigned to a reporting unit exceeds the fair value of a reporting unit, the second step of the impairment test is performed in order to determine the implied fair value of a reporting unit’s goodwill. Determining the implied fair value of goodwill requires valuation of a reporting unit’s tangible and intangible assets and liabilities in a manner similar to the allocation of purchase price in a business combination. If the carrying value of a reporting unit’s goodwill exceeds its implied fair value, goodwill is deemed impaired and is written down to the extent of the difference. We estimate total fair value of each reporting unit using market approaches and also a discounted cash flow analysis, and make assumptions regarding future revenue, gross margins, working capital levels, investments in new products, capital spending, tax, cash flows and the terminal value of the reporting unit. With regard to other intangibles with indefinite lives, we determine the fair value by asset, which is then compared to its carrying value to determine if the assets are impaired. | |||||
Goodwill is allocated entirely to our Education reporting unit. Determining the fair value of a reporting unit is judgmental in nature, and involves the use of significant estimates and assumptions. These estimates and assumptions may include revenue growth rates and operating margins used to calculate projected future cash flows, risk-adjusted discount rates, future economic and market conditions, the determination of appropriate market comparables as well as the fair value of individual assets and liabilities. Consistent with prior years, we used a combination of a market approach and income approach to establish the fair value of the reporting unit as of October 1, 2014. | |||||
We completed our annual goodwill and indefinite-lived intangible asset impairment tests as of October 1, 2014, 2013, and 2012 and recorded a noncash impairment charge of $0.4 million, $0.5 million and $5.0 million for the years ended December 31, 2014, 2013 and 2012, respectively. The impairments principally related to two specific tradenames within the Trade Publishing segment in both 2014 and 2013 and one specific tradename within the Education segment in 2012. The impairment charges resulted primarily from a decline in revenue from previously projected amounts. | |||||
Publishing Rights | |||||
A publishing right is an acquired right that allows us to publish and republish existing and future works as well as create new works based on previously published materials. We determine the fair market value of the publishing rights arising from business combinations by discounting the after-tax cash flows projected to be derived from the publishing rights and titles to their net present value using a rate of return that accounts for the time value of money and the appropriate degree of risk. The useful life of the publishing rights is based on the lives of the various copyrights involved. We calculate amortization using the percentage of the projected operating income before taxes derived from the titles in the current year as a percentage of the total estimated operating income before taxes over the remaining useful life. Acquired publication rights, as well as customer-related intangibles with definitive lives, are primarily amortized on an accelerated basis over periods ranging from three to 20 years. | |||||
Impairment of other long-lived assets | |||||
We review our other long-lived assets for impairment whenever events or changes in circumstances indicate that the carrying amount of an asset may not be fully recoverable. If the future undiscounted cash flows are less than their book value, impairment exists. The impairment is measured as the difference between the book value and the fair value of the underlying asset. Fair value is normally determined using a discounted cash flow model. | |||||
Severance | |||||
We accrue postemployment benefits if the obligation is attributable to services already rendered, rights to those benefits accumulate, payment of benefits is probable, and amount of benefit is reasonably estimated. Postemployment benefits include severance benefits. | |||||
Subsequent to recording such accrued severance liabilities, changes in market or other conditions may result in changes to assumptions upon which the original liabilities were recorded that could result in an adjustment to the liabilities. | |||||
Royalty advances | |||||
Royalty advances to authors are capitalized and represent amounts paid in advance of the sale of an author’s product and are recovered as earned. As advances are recorded, a partial reserve may be recorded immediately based primarily upon historical sales experience. Advances are evaluated periodically to determine if they are expected to be recovered. Any portion of a royalty advance that is not expected to be recovered is fully reserved. Cash payments for royalty advances are included within cash flows from operating activities, under the caption “Royalties, net,” in our consolidated statements of cash flows. | |||||
Income taxes | |||||
We record income taxes using the asset and liability method. Deferred income tax assets and liabilities are recognized for future tax consequences attributable to differences between the financial statement carrying amounts of existing assets and liabilities and their respective income tax basis, and operating loss and tax credit carryforwards. Our consolidated financial statements contain certain deferred tax assets which have arisen primarily as a result of interest expense limitations, as well as other temporary differences between financial and tax accounting. We establish a valuation allowance if the likelihood of realization of the deferred tax assets is reduced based on an evaluation of objective verifiable evidence. Significant management judgment is required in determining our provision for income taxes, our deferred tax assets and liabilities and any valuation allowance recorded against those deferred tax assets. We evaluate the weight of all available evidence to determine whether it is more likely than not that some portion or all of the deferred income tax assets will not be realized. | |||||
We also evaluate any uncertain tax positions and only recognize the tax benefit from an uncertain tax position if it is more likely than not that the tax position will be sustained on examination by the taxing authorities, based on the technical merits of the position. The tax benefits recognized in the financial statements from such positions are then measured based on the largest benefit that has a greater than 50 percent likelihood of being realized upon settlement. We record a liability for unrecognized tax benefits resulting from uncertain tax positions taken or expected to be taken in a tax return. Any change in judgment related to the expected ultimate resolution of uncertain tax positions is recognized in earnings in the period in which such change occurs. Interest and penalties, if any, related to unrecognized tax benefits are recorded in income tax expense. | |||||
Stock-Based Compensation | |||||
Certain employees and or directors have been granted stock options and restricted stock awards in the Company’s common stock. Stock based compensation expense reflects the fair value of stock-based awards measured at the grant date and recognized over the relevant service period. We estimate the fair value of each stock-based award on the measurement date using either the current market price or the Black-Scholes option valuation model. The Black-Scholes option valuation model incorporates assumptions as to stock volatility, the expected life of the options, risk-free interest rate and dividend yield for time-vested stock options and restricted stock. We recognize compensation cost on a straight-line basis over the awards’ vesting periods. | |||||
Comprehensive Loss | |||||
Comprehensive loss is defined as changes in the equity of an enterprise except those resulting from stockholder transactions. The amounts shown on the consolidated statements of stockholders’ equity and comprehensive loss relate to the cumulative effect of changes in pension and postretirement liabilities, foreign currency translation gain and loss adjustments, and unrealized gains and losses on short-term investments. | |||||
Foreign Currency Translation | |||||
The functional currency for each of our subsidiaries is the currency of the primary economic environment in which the subsidiary operates, generally defined as the currency in which the entity generates and expends cash. Foreign currency denominated assets and liabilities are translated into United States dollars at current rates as of the balance sheet date and the revenue, costs and expenses are translated at the average rates established during each reporting period. Cumulative translation gains or losses are recorded in equity as an element of accumulated other comprehensive income. | |||||
Financial instruments | |||||
Derivative financial instruments are employed to manage risks associated with interest rate exposures and are not used for trading or speculative purposes. We recognize all derivative instruments, such as foreign exchange forward and option contracts, in our consolidated balance sheets at fair value. Changes in the fair value of derivatives are recognized periodically either in earnings or in stockholders’ equity as a component of accumulated other comprehensive loss, depending on whether the derivative financial instrument qualifies for hedge accounting and, if so, whether it qualifies as a fair value hedge or a cash flow hedge. Gains and losses on derivatives designated as hedges, to the extent they are effective, are recorded in other comprehensive income, and subsequently reclassified to earnings to offset the impact of the hedged items when they occur. Changes in the fair value of derivatives not qualifying as hedges are reported in earnings. Our foreign exchange forward and option contracts did not qualify for hedge accounting because we did not contemporaneously document our hedging strategy upon entering into the hedging arrangements. There were no derivative instruments that qualified for hedge accounting during 2014, 2013 and 2012. | |||||
Treasury Stock | |||||
We account for treasury stock under the cost method. When shares are reissued or retired from treasury stock they are accounted for at an average price. Upon retirement the excess over par value is charged against capital in excess of par value. | |||||
Net Loss per Share | |||||
Basic net loss per share attributable to common stockholders is computed by dividing net loss attributable to common stockholders by the weighted-average common shares outstanding during the period. Except where the result would be anti-dilutive, net loss per share is computed using the treasury stock method for the exercise of stock options. For periods in which the Company has reported net losses, diluted net loss per share attributable to common stockholders is the same as basic net loss per share attributable to common stockholders, since dilutive common shares are not assumed to have been issued if their effect is anti-dilutive. Diluted net loss per share attributable to common stockholders is the same as basic net loss per share attributable to common stockholders for the years ended December 31, 2014, 2013 and 2012. | |||||
Recent Accounting Pronouncements | |||||
Recent accounting pronouncements, not included below, are not expected to have a material impact on our consolidated financial position and results of operations. | |||||
In August 2014, the Financial Accounting Standards Board (“FASB”) issued new guidance related to the disclosures around going concern. The new standard provides guidance around management’s responsibility to evaluate whether there is substantial doubt about an entity’s ability to continue as a going concern and to provide related footnote disclosures. The new standard is effective for fiscal years, and interim periods within those fiscal years, beginning after December 15, 2016. Early adoption is permitted. The adoption of this standard is not expected to have an impact on our consolidated financial statements or disclosures. | |||||
In June 2014, the FASB issued new guidance related to stock compensation. The new standard requires that a performance target that affects vesting, and that could be achieved after the requisite service period, be treated as a performance condition. As such, the performance target should not be reflected in estimating the grant date fair value of the award. This update further clarifies that compensation cost should be recognized in the period in which it becomes probable that the performance target will be achieved and should represent the compensation cost attributable to the periods for which the requisite service has already been rendered. The new standard is effective for fiscal years, and interim periods within those fiscal years, beginning after December 15, 2015 and can be applied either prospectively or retrospectively to all awards outstanding as of the beginning of the earliest annual period presented as an adjustment to opening retained earnings. Early adoption is permitted. We do not believe the adoption of this new accounting standard will impact our consolidated financial statements. | |||||
In May 2014, the FASB issued new accounting guidance related to revenue recognition. This new standard will replace all current U.S. GAAP guidance on this topic and eliminate all industry-specific guidance. The new revenue recognition standard provides a unified model to determine when and how revenue is recognized. The core principle is that a company should recognize revenue to depict the transfer of promised goods or services to customers in an amount that reflects the consideration for which the entity expects to be entitled in exchange for those goods or services. This guidance will be effective beginning January 1, 2017 and can be applied either retrospectively to each period presented or as a cumulative-effect adjustment as of the date of adoption. We are in the process of evaluating the impact of adopting this new accounting standard on our consolidated financial statements. | |||||
In April 2014, the FASB issued new guidance related to reporting discontinued operations. This new standard raises the threshold for a disposal to qualify as a discontinued operation and requires new disclosures of both discontinued operations and certain other disposals that do not meet the definition of a discontinued operation. The new standard is effective for fiscal years beginning on or after December 15, 2014. Early adoption is permitted but only for disposals that have not been reported in financial statements previously issued. We do not believe the adoption of this new accounting standard will impact our consolidated financial statements. |
Acquisitions
Acquisitions | 12 Months Ended | |
Dec. 31, 2014 | ||
Business Combinations [Abstract] | ||
Acquisitions | 4 | Acquisitions |
On May 12, 2014, we completed the acquisition of certain assets and liabilities of Channel One News, which is a digital content provider dedicated to encouraging kids to be informed, digitally-savvy global citizens. The acquisition allows for continued development of high-quality digital content for students, teachers and parents across multiple modalities, and brings video and cross-media production capabilities to HMH. | ||
On May 19, 2014, we completed the acquisition of 100% of the stock of Curiosityville, which is an online personalized learning environment that helps children ages 3-8 learn through playful exploration and discovery both at home and in pre-school settings. The acquisition also includes its proprietary data collection and analytics engine, the Learning Tree, which provides real-time information on individual learners and personalized recommendations for learning, both online and offline. | ||
On June 30, 2014, we completed the acquisition of 100% of the stock of School Chapters, which is an educational solutions provider dedicated to standards-based education quality management, accreditation services and community-based resources for educators and learners across the pre-K-12 and college spectrum. | ||
The total aggregate purchase price for the three acquisitions described above was approximately $9.5 million, which consisted of cash at closing of approximately $9.1 million, and amounts in accrued liabilities of approximately $0.4 million. Goodwill, other intangible assets, accounts receivable, property, plant, and equipment, other assets and other liabilities recorded as part of the acquisitions totaled approximately $1.1 million, $0.2 million, $3.1 million, $6.8 million, $0.4 million and $1.7 million, respectively. | ||
In 2013, we made a $1.5 million investment in preferred stock. Based on impairment indicators, we were required to remeasure the fair value of our 2013 investment with any resulting gain or loss recognized in the statement of operations. Based on the implied fair value of the investment, we recorded an impairment charge of approximately $1.3 million during the year ended December 31, 2014 relating to the fair value remeasurement. | ||
On October 28, 2013, we completed the acquisition of Choice Solutions, Inc., which is an educational technology company focused on educational data science, analytics, integrated solutions, and professional services for a total purchase price of approximately $15.9 million, which consisted of cash at closing, subject to a closing working capital adjustment. The transaction was accounted for under the acquisition method of accounting. Goodwill, other intangible assets, cash, other assets, other liabilities and deferred tax liabilities recorded as part of the acquisition totaled approximately $7.6 million, $10.4 million, $2.5 million, $0.8 million, $1.4 million and $4.0 million, respectively. | ||
On April 10, 2013, we completed the acquisition of Tribal Nova, Inc., which is an educational technology company focused on the development of digital games, products and services for pre-school children for a total purchase price of approximately $7.3 million. The purchase price consisted of approximately $5.8 million of cash at closing and promissory notes due over two years totaling approximately $1.5 million, subject to a closing working capital adjustment which increased the amount due by approximately $0.1 million. The acquisition provides us with an increased capacity to create entertaining and innovative online educational games. The transaction was accounted for under the acquisition method of accounting. Goodwill, other intangible assets, cash, other assets and other liabilities recorded as part of the acquisition totaled approximately $4.1 million, $1.6 million, $0.5 million, $1.7 million and $2.2 million, respectively. | ||
During 2012, we acquired certain asset product lines from a third party for a total purchase price of approximately $11.0 million, which was paid in cash at closing. The acquisition provides us with the copyrights, trademarks and intellectual property of the acquired product lines for our Trade Publishing segment. In connection with the acquisition, we entered into a transition services agreement whereby the third party provided certain transitional services to us for the acquired product lines. Since the fair value assigned to the net assets acquired exceeded the consideration paid, we recorded a $30.8 million gain on bargain purchase on the transaction in 2012. Intangible assets, author advances, and other assets recorded as part of the acquisition totaled approximately $30.4 million, $6.2 million, and $5.1 million, respectively. | ||
All transactions above were accounted for under the acquisition method of accounting. We allocated the purchase price to each of the assets and liabilities acquired at estimated fair values as of the acquisition date. The excess of the purchase price over the net amounts assigned to the fair value of the assets acquired and liabilities assumed was recorded as goodwill. The financial results of each company acquired were included within our financial statements from their respective dates of acquisition. The acquisitions were not considered to be material for purposes of additional disclosure. |
Balance_Sheet_Information
Balance Sheet Information | 12 Months Ended | ||||||||||||||||
Dec. 31, 2014 | |||||||||||||||||
Organization, Consolidation and Presentation of Financial Statements [Abstract] | |||||||||||||||||
Balance Sheet Information | 5 | Balance Sheet Information | |||||||||||||||
Short-term Investments | |||||||||||||||||
The estimated fair value of our short-term investments classified as available for sale, is as follows: | |||||||||||||||||
December 31, 2014 | |||||||||||||||||
Amortized | Unrealized | Unrealized | Estimated | ||||||||||||||
Cost | Gains | Losses | Fair Value | ||||||||||||||
Short-term investments: | |||||||||||||||||
U.S. Government and agency securities | $ | 286,675 | $ | 10 | $ | (99 | ) | $ | 286,764 | ||||||||
$ | 286,675 | $ | 10 | $ | (99 | ) | $ | 286,764 | |||||||||
December 31, 2013 | |||||||||||||||||
Amortized | Unrealized | Unrealized | Estimated | ||||||||||||||
Cost | Gains | Losses | Fair Value | ||||||||||||||
Short-term investments: | |||||||||||||||||
U.S. Government and agency securities | $ | 111,721 | $ | 4 | $ | (4 | ) | $ | 111,721 | ||||||||
$ | 111,721 | $ | 4 | $ | (4 | ) | $ | 111,721 | |||||||||
The contractual maturities of our short-term investments are one year or less. | |||||||||||||||||
Account Receivable | |||||||||||||||||
Accounts receivable at December 31, 2014 and 2013 consisted of the following: | |||||||||||||||||
2014 | 2013 | ||||||||||||||||
Accounts receivable | $ | 283,453 | $ | 358,734 | |||||||||||||
Allowance for bad debt | (5,625 | ) | (5,084 | ) | |||||||||||||
Reserve for book returns | (22,159 | ) | (35,549 | ) | |||||||||||||
$ | 255,669 | $ | 318,101 | ||||||||||||||
Inventories | |||||||||||||||||
Inventories at December 31, 2014 and 2013 consisted of the following: | |||||||||||||||||
2014 | 2013 | ||||||||||||||||
Finished goods | $ | 178,812 | $ | 177,017 | |||||||||||||
Raw materials | 5,149 | 5,177 | |||||||||||||||
Inventory | $ | 183,961 | $ | 182,194 | |||||||||||||
Property, Plant, and Equipment | |||||||||||||||||
Balances of major classes of assets and accumulated depreciation and amortization at December 31, 2014 and 2013 were as follows: | |||||||||||||||||
2014 | 2013 | ||||||||||||||||
Land and land improvements | $ | 4,717 | $ | 4,717 | |||||||||||||
Building and building equipment | 9,723 | 9,505 | |||||||||||||||
Machinery and equipment | 18,766 | 15,223 | |||||||||||||||
Capitalized software | 350,179 | 294,361 | |||||||||||||||
Leasehold improvements | 28,719 | 27,961 | |||||||||||||||
412,104 | 351,767 | ||||||||||||||||
Less: Accumulated depreciation and amortization | (273,742 | ) | (210,919 | ) | |||||||||||||
Property, plant, and equipment, net | $ | 138,362 | $ | 140,848 | |||||||||||||
For the year ended December 31, 2014, 2013 and 2012, depreciation and amortization expense related to property, plant, and equipment were $72.3 million, $61.7 million and $58.1 million, respectively. | |||||||||||||||||
Property, plant, and equipment at December 31, 2014 and 2013 included approximately $6.9 million and $6.0 million, respectively, acquired under capital lease agreements, of which the majority is included in machinery and equipment. The future minimum lease payments required under non-cancelable capital leases as of December 31, 2014 is as follows: $2.4 million in 2015 and $1.4 million in 2016. | |||||||||||||||||
Substantially all property, plant, and equipment are pledged as collateral under our Term Loan and Revolving Credit Facility. | |||||||||||||||||
Accumulated Other Comprehensive Loss | |||||||||||||||||
Accumulated other comprehensive loss consisted of the following at December 31, 2014, 2013 and 2012: | |||||||||||||||||
2014 | 2013 | 2012 | |||||||||||||||
Net change in pension and benefit plan liability | $ | (24,198 | ) | $ | (10,818 | ) | $ | (18,664 | ) | ||||||||
Foreign currency translation adjustments | (2,502 | ) | (2,473 | ) | (2,877 | ) | |||||||||||
Unrealized gain on short-term investments | (89 | ) | — | 13 | |||||||||||||
$ | (26,789 | ) | $ | (13,291 | ) | $ | (21,528 | ) | |||||||||
Amounts reclassified from accumulated other comprehensive loss for the years ended December 31, 2014, 2013 and 2012 relating to the amortization of defined benefit pension and postretirement benefit plans totaled approximately $(1.4) million, $0.6 million and $0.9 million, respectively, and affected the selling and administrative line item in the consolidated statement of operations. These accumulated other comprehensive loss components are included in the computation of net periodic benefit cost. | |||||||||||||||||
Goodwill_and_Other_Intangible_
Goodwill and Other Intangible Assets | 12 Months Ended | ||||||||||||||||
Dec. 31, 2014 | |||||||||||||||||
Goodwill and Intangible Assets Disclosure [Abstract] | |||||||||||||||||
Goodwill and Other Intangible Assets | 6 | Goodwill and Other Intangible Assets | |||||||||||||||
Goodwill and other intangible assets consisted of the following: | |||||||||||||||||
December 31, 2014 | December 31, 2013 | ||||||||||||||||
Cost | Accumulated | Cost | Accumulated | ||||||||||||||
Amortization | Amortization | ||||||||||||||||
Goodwill | $ | 532,921 | $ | — | $ | 531,786 | $ | — | |||||||||
Trademarks and tradenames | 439,719 | — | 440,005 | — | |||||||||||||
Publishing rights | 1,180,000 | (889,560 | ) | 1,180,000 | (783,937 | ) | |||||||||||
Customer related and other | 283,225 | (211,415 | ) | 283,172 | (199,246 | ) | |||||||||||
$ | 2,435,865 | $ | (1,100,975 | ) | $ | 2,434,963 | $ | (983,183 | ) | ||||||||
The changes in the carrying amount of goodwill for the years ended December 31, 2014 and 2013 are as follows: | |||||||||||||||||
Balance at December 31, 2012 | $ | 520,088 | |||||||||||||||
Goodwill | 1,962,588 | ||||||||||||||||
Accumulated impairment losses | (1,442,500 | ) | |||||||||||||||
Acquisitions | 11,698 | ||||||||||||||||
Balance at December 31, 2013 | $ | 531,786 | |||||||||||||||
Goodwill | 1,974,286 | ||||||||||||||||
Accumulated impairment losses | (1,442,500 | ) | |||||||||||||||
Acquisitions | 1,135 | ||||||||||||||||
Balance at December 31, 2014 | $ | 532,921 | |||||||||||||||
We had goodwill of $532.9 million and $531.8 million at December 31, 2014 and 2013, respectively. The additions to goodwill relate to our acquisitions described in Note 4 of approximately $1.1 million and $11.7 million for the year ended December 31, 2014 and 2013, respectively. There was no goodwill impairment charge for the years ended December 31, 2014 and 2013. | |||||||||||||||||
In accordance with the provisions of the accounting standard for goodwill and other intangible assets, goodwill and certain indefinite-lived tradenames are not amortized. We recorded an impairment charge of approximately $0.4 million, $0.5 million, and $5.0 million for certain of our indefinite-lived intangible assets at October 1, 2014, 2013, and 2012, respectively. Amortization expense for publishing rights and customer related and other intangibles were $117.8 million, $158.6 million and $232.6 million for the year ended December 31, 2014, 2013 and 2012, respectively. | |||||||||||||||||
Estimated aggregate amortization expense expected for each of the next five years related to intangibles subject to amortization is as follows: | |||||||||||||||||
Publishing | Other | ||||||||||||||||
Rights | Intangible | ||||||||||||||||
Assets | |||||||||||||||||
2015 | 81,007 | 12,346 | |||||||||||||||
2016 | 61,350 | 11,201 | |||||||||||||||
2017 | 46,238 | 10,080 | |||||||||||||||
2018 | 34,713 | 9,053 | |||||||||||||||
2019 | 26,557 | 6,488 | |||||||||||||||
Thereafter | 40,575 | 22,642 |
Debt
Debt | 12 Months Ended | ||||||||
Dec. 31, 2014 | |||||||||
Debt Disclosure [Abstract] | |||||||||
Debt | 7 | Debt | |||||||
Long-term debt at December 31, 2014 and 2013 consisted of the following: | |||||||||
2014 | 2013 | ||||||||
$250,000 Term Loan due May 21, 2018 | $ | 243,125 | $ | 245,625 | |||||
interest payable monthly | |||||||||
Less: Current portion of long-term debt | 67,500 | 2,500 | |||||||
Total long-term debt | $ | 175,625 | $ | 243,125 | |||||
Included in the Current portion of long-term debt is $65.0 million payable under the Excess Cash Flow provisions of the Term Loan Facility, which are predicated upon our leverage ratio and cash flow. | |||||||||
Long-term debt repayments due in each of the next five years and thereafter is as follows: | |||||||||
Year | |||||||||
2015 | 67,500 | ||||||||
2016 | 2,500 | ||||||||
2017 | 2,500 | ||||||||
2018 | 170,625 | ||||||||
2019 | — | ||||||||
Thereafter | — | ||||||||
$ | 243,125 | ||||||||
On January 15, 2014, we entered into Amendment No. 4 to our Term Loan Facility, which reduced the interest rate applicable to outstanding borrowings by 1.0%. The transaction was accounted for under the accounting guidance for debt modifications and extinguishments. We recorded an expense of approximately $1.0 million relating to third party transaction fees which was included in the selling and administrative line item in its consolidated statements of operations for the year ended December 31, 2014. | |||||||||
On May 24, 2013, we entered into Amendment No. 3 to the Term Loan Facility. Amendment No. 3 primarily reduced the term loan spread by 1.75% and reduced the LIBOR floor by 0.25% resulting in an overall decrease in the Term Loan Facility interest rate of 2.00%. The Term Loan Facility has a term of six years and the interest rate for borrowings under the Term Loan Facility is based on the borrowers’ election, LIBOR plus 4.25% per annum or the alternate base rate plus 3.25%. The LIBOR rate under the Term Loan Facility is subject to a minimum “floor” of 1.00%. As of December 31, 2013, the interest rate of the Term Loan Facility is 5.25%. During the year ended December 31, 2013, due to the change in syndication, we recorded a loss on debt extinguishment of approximately $0.6 million relating to the write off of capitalized deferred financing fees in accordance with the accounting guidance for debt modifications and extinguishments. | |||||||||
On May 22, 2012, we entered into a new $500.0 million DIP facility which was converted into an exit facility upon emergence from Chapter 11. This exit facility consists of a $250.0 million revolving credit facility (“Revolving Credit Facility”), which is secured by the Company’s accounts receivable and inventory, and a $250.0 million term loan credit facility (“Term Loan”). The Revolving Credit Facility has a term of five years and the interest rate is determined by a combination of LIBOR rate and average daily availability. No funds have been drawn on the Revolving Credit Facility as of December 31, 2012. The Term Loan has a term of six years and the interest rate is based on the LIBOR plus 6.0%. The actual LIBOR is subject to a minimum “floor” of 1.25%. The proceeds of the Term Loan were used to fund the costs of the reorganization and provide post-closing working capital to the Company. | |||||||||
On June 11, 2012 and June 20, 2012, respectively, we entered into Amendment No. 1 and Amendment No. 2 to the Term Loan. Amendment No. 1 modified definitions by reducing LIBOR from 1.50% to 1.25% along with a reduction in the interest rate from 6.25% to 6.0%. Amendment No. 2 related to administrative matters modifying the notice requirement, which enabled the Company to move from a DIP facility to an exit facility upon emergence from bankruptcy. | |||||||||
On June 20, 2012, we entered into Amendment No. 1 and Amendment No. 2 to our Revolving Credit Facility. Amendment No. 1 modified definitions relating to administrative matters releasing our restricted cash of $26.5 million, which was collateralizing our letters of credit. Amendment No. 2 modified certain provisions of the agreement with regard to same day borrowing. | |||||||||
In 2012, the contractual interest exceeded the amount reported in the statement of operations by $19.2 million as interest ceased accruing on the Term Loan, Revolving Loan and 10.5% Senior Notes at the date of the bankruptcy filing. | |||||||||
Loan Covenants | |||||||||
We are required to meet certain restrictive financial covenants as defined under our Term Loan and Revolving Credit Facility. We have financial covenants pertaining to interest coverage, maximum leverage, and fixed charge ratios. The interest coverage ratio is now 9.0 to 1.0 for all fiscal quarters ending through maturity. The maximum leverage ratio is now 2.0 to 1.0 for fiscal quarters ending through maturity. The fixed charge ratio, which only pertains to the revolving credit facility and is only tested in limited situations, is 1.0 to 1.0 through the end of the facility. As of December 31, 2014, we were in compliance with all of our debt covenants. | |||||||||
Loan Guarantees | |||||||||
Under both the revolving credit facility and the term loan facility, Houghton Mifflin Harcourt Publishers Inc., HMH Publishers LLC and Houghton Mifflin Harcourt Publishing Company are the borrowers (collectively, the “Borrowers”), and Citibank, N.A. acts as both the administrative agent and the collateral agent. | |||||||||
The obligations under our senior secured credit facilities are guaranteed by the Company and each of its direct and indirect-for-profit domestic subsidiaries (other than the Borrowers) (collectively, the “Guarantors”) and are secured by all capital stock and other equity interests of the Borrowers and the Guarantors and substantially all of the other tangible and intangible assets of the Borrowers and the Guarantors, including without limitation, receivables, inventory, equipment, contract rights, securities, patents, trademarks, other intellectual property, cash, bank accounts and securities accounts and owned real estate. The revolving credit facility is secured by first priority liens on receivables, inventory, deposit accounts, securities accounts, instruments, chattel paper and other assets related to the foregoing (the “Revolving First Lien Collateral”), and second priority liens on the collateral which secures the term loan facility on a first priority basis. The term loan facility is secured by first priority liens on the capital stock and other equity interests of the Borrower and the Guarantors, equipment, owned real estate, trademarks and other intellectual property, general intangibles that are not Revolving First Lien Collateral and other assets related to the foregoing, and second priority liens on the Revolving First Lien Collateral. |
Severance_and_Other_Charges
Severance and Other Charges | 12 Months Ended | ||||||||||||||||
Dec. 31, 2014 | |||||||||||||||||
Restructuring and Related Activities [Abstract] | |||||||||||||||||
Severance and Other Charges | 8 | Severance and Other Charges | |||||||||||||||
2014 | |||||||||||||||||
During the year ended December 31, 2014, $7.9 million of severance payments were made to employees whose employment ended in 2014 and prior years and $4.6 million of net payments for office space no longer utilized by the Company. Further, we recorded an expense in the amount of $5.0 million to reflect additional costs for severance, which we expect to pay the remaining $1.3 million over the next twelve months, along with a $2.3 million accrual for additional space vacated or revised estimates for space previously vacated. | |||||||||||||||||
2013 | |||||||||||||||||
During the year ended December 31, 2013, $5.8 million of severance payments were made to employees whose employment ended in 2013 and prior years and $7.0 million of net payments for office space no longer utilized by the Company. Further, we recorded an expense in the amount of $10.0 million to reflect additional costs for severance and revised estimates for office space no longer utilized in connection to our continuing strategic alignment of the business. | |||||||||||||||||
2012 | |||||||||||||||||
During the year ended December 31, 2012, $19.2 million of severance payments were made to employees whose employment ended in 2012 and prior years and $7.6 million of net payments for office space no longer utilized by the Company. Further, we recorded an expense in the amount of $9.4 million to reflect additional costs for severance and revised estimates for office space no longer utilized in connection to our continuing strategic alignment of the business. | |||||||||||||||||
A summary of the significant components of the severance/restructuring and other charges is as follows: | |||||||||||||||||
2014 | |||||||||||||||||
Severance/ | Severance/ | Cash payments | Severance/ | ||||||||||||||
restructuring | restructuring | restructuring | |||||||||||||||
accrual at | expense | accrual at | |||||||||||||||
December 31, 2013 | December 31, 2014 | ||||||||||||||||
Severance costs | $ | 4,115 | $ | 5,022 | $ | (7,866 | ) | $ | 1,271 | ||||||||
Other accruals | 11,416 | 2,278 | (4,644 | ) | 9,050 | ||||||||||||
$ | 15,531 | $ | 7,300 | $ | (12,510 | ) | $ | 10,321 | |||||||||
2013 | |||||||||||||||||
Severance/ | Severance/ | Cash payments | Severance/ | ||||||||||||||
restructuring | restructuring | restructuring | |||||||||||||||
accrual at | expense | accrual at | |||||||||||||||
December 31, 2012 | December 31, 2013 | ||||||||||||||||
Severance costs | $ | 2,142 | $ | 7,801 | $ | (5,828 | ) | $ | 4,115 | ||||||||
Other accruals | 16,148 | 2,239 | (6,971 | ) | 11,416 | ||||||||||||
$ | 18,290 | $ | 10,040 | $ | (12,799 | ) | $ | 15,531 | |||||||||
2012 | |||||||||||||||||
Severance/ | Severance/ | Cash payments | Severance/ | ||||||||||||||
restructuring | restructuring | restructuring | |||||||||||||||
accrual at | expense | accrual at | |||||||||||||||
December 31, 2011 | December 31, 2012 | ||||||||||||||||
Severance costs | $ | 16,071 | $ | 5,284 | $ | (19,213 | ) | $ | 2,142 | ||||||||
Other accruals | 19,679 | 4,091 | (7,622 | ) | 16,148 | ||||||||||||
$ | 35,750 | $ | 9,375 | $ | (26,835 | ) | $ | 18,290 | |||||||||
The current portion of the severance and other charges was $5.9 million and $8.2 million as of December 31, 2014 and 2013, respectively. |
Income_Taxes
Income Taxes | 12 Months Ended | ||||||||||||
Dec. 31, 2014 | |||||||||||||
Income Tax Disclosure [Abstract] | |||||||||||||
Income Taxes | 9 | Income Taxes | |||||||||||
The components of loss before taxes by jurisdiction are as follows: | |||||||||||||
For the Year | For the Year | For the Year | |||||||||||
Ended | Ended | Ended | |||||||||||
December 31, 2014 | December 31, 2013 | December 31, 2012 | |||||||||||
U.S. | $ | (102,284 | ) | $ | (80,969 | ) | $ | (47,755 | ) | ||||
Foreign | (2,945 | ) | (27,870 | ) | (45,327 | ) | |||||||
Loss before taxes | $ | (105,249 | ) | $ | (108,839 | ) | $ | (93,082 | ) | ||||
Total income taxes by jurisdiction are as follows: | |||||||||||||
For the Year | For the Year | For the Year | |||||||||||
Ended | Ended | Ended | |||||||||||
December 31, 2014 | December 31, 2013 | December 31, 2012 | |||||||||||
Income tax expense (benefit) | |||||||||||||
U.S. | $ | 9,632 | $ | 1,496 | $ | (7,045 | ) | ||||||
Foreign | (3,390 | ) | 851 | 1,102 | |||||||||
$ | 6,242 | $ | 2,347 | $ | (5,943 | ) | |||||||
Significant components of the expense (benefit) for income taxes attributable to loss from continuing operations consist of the following: | |||||||||||||
For the Year | For the Year | For the Year | |||||||||||
Ended | Ended | Ended | |||||||||||
December 31, 2014 | December 31, 2013 | December 31, 2012 | |||||||||||
Current | |||||||||||||
Foreign | $ | 588 | $ | 760 | $ | 1,102 | |||||||
U.S.—Federal | — | — | — | ||||||||||
U.S.—State and other | 4,633 | 3,734 | 3,031 | ||||||||||
Total current | 5,221 | 4,494 | 4,133 | ||||||||||
Deferred | |||||||||||||
Foreign | (3,633 | ) | 91 | — | |||||||||
U.S.—Federal | 3,889 | (1,417 | ) | (9,201 | ) | ||||||||
U.S.—State and other | 765 | (821 | ) | (875 | ) | ||||||||
Total deferred | 1,021 | (2,147 | ) | (10,076 | ) | ||||||||
Income tax expense (benefit) | $ | 6,242 | $ | 2,347 | $ | (5,943 | ) | ||||||
The reconciliation of the income tax rate computed at the statutory tax rate to the reported income tax expense (benefit) attributable to continuing operations is as follows: | |||||||||||||
For the Year | For the Year | For the Year | |||||||||||
Ended | Ended | Ended | |||||||||||
December 31, 2014 | December 31, 2013 | December 31, 2012 | |||||||||||
Statutory rate | (35.0 | )% | (35.0 | )% | (35.0 | )% | |||||||
Permanent items | 1 | 2.5 | 3.7 | ||||||||||
UTP interest | 3.3 | — | — | ||||||||||
Transfer pricing adjustments | — | — | (0.1 | ) | |||||||||
Reorganization expense | — | — | 5.9 | ||||||||||
Bargain purchase gain | — | — | (11.6 | ) | |||||||||
Foreign rate differential | 0.1 | 6 | 10.3 | ||||||||||
State and local taxes | 1.2 | 0.3 | — | ||||||||||
Increase in valuation allowance | 35.3 | 28.4 | 20.4 | ||||||||||
Effective tax rate | 5.9 | % | 2.2 | % | (6.4 | )% | |||||||
The significant components of the net deferred tax assets and liabilities are shown in the following table: | |||||||||||||
2014 | 2013 | ||||||||||||
Tax asset related to | |||||||||||||
Net operating loss and other carryforwards | $ | 71,565 | $ | 40,021 | |||||||||
Returns reserve/inventory expense | 61,124 | 64,264 | |||||||||||
Pension and postretirement benefits | 8,122 | 10,488 | |||||||||||
Deferred interest (1) | 463,013 | 483,143 | |||||||||||
Deferred revenue | 75,577 | 109,240 | |||||||||||
Deferred compensation | 23,084 | 17,182 | |||||||||||
Other, net | 26,394 | 21,163 | |||||||||||
Valuation allowance | (550,660 | ) | (527,960 | ) | |||||||||
178,219 | 217,541 | ||||||||||||
Tax liability related to | |||||||||||||
Intangible assets | (211,805 | ) | (231,186 | ) | |||||||||
Depreciation and amortization expense | (54,201 | ) | (73,512 | ) | |||||||||
Other, net | (269 | ) | — | ||||||||||
(266,275 | ) | (304,698 | ) | ||||||||||
Net deferred tax liabilities | $ | (88,056 | ) | $ | (87,157 | ) | |||||||
-1 | The Deferred Interest tax asset represents disallowed interest deductions under IRC Section 163(j) (Limitation on Deduction for interest on Certain Indebtedness) for the current and prior years. The disallowed interest is able to be carried forward and utilized in future years pursuant to IRC Section 163(j)(1)(B). A full valuation allowance has been provided against deferred tax assets net of deferred tax liabilities, with the exception of deferred tax liabilities resulting from long lived intangibles. | ||||||||||||
The net deferred tax liability balance is stated at prevailing statutory income tax rates. Deferred tax assets and liabilities are reflected on our consolidated balance sheets as follows: | |||||||||||||
2014 | 2013 | ||||||||||||
Current deferred tax assets | $ | 20,459 | $ | 29,842 | |||||||||
Non-current deferred tax assets | 3,705 | — | |||||||||||
Noncurrent deferred tax liability | (112,220 | ) | (116,999 | ) | |||||||||
$ | (88,056 | ) | $ | (87,157 | ) | ||||||||
A reconciliation of the gross amount of unrecognized tax benefits, excluding accrued interest and penalties, is as follows: | |||||||||||||
Balance at December 31, 2011 | $ | 70,774 | |||||||||||
Reductions based on tax positions related to the prior year | (105 | ) | |||||||||||
Additions based on tax positions related to the current year | 3,965 | ||||||||||||
Balance at December 31, 2012 | $ | 74,634 | |||||||||||
Reductions based on tax positions related to the prior year | (1,984 | ) | |||||||||||
Additions based on tax positions related to the current year | 2,853 | ||||||||||||
Balance at December 31, 2013 | $ | 75,503 | |||||||||||
Reductions based on tax positions related to the prior year | — | ||||||||||||
Additions based on tax positions related to the current year | 3,131 | ||||||||||||
Balance at December 31, 2014 | $ | 78,634 | |||||||||||
The above table has been revised to include the effects of an uncertain tax position in a foreign jurisdiction. | |||||||||||||
At December 31, 2014, we had $78.6 million of gross unrecognized tax benefits (excluding interest and penalties), of which $68.5 million, if recognized, would reduce the Company’s effective tax rate. The Company expects the amount of unrecognized tax benefit disclosed to be reduced by $52.1 million over the next twelve months. | |||||||||||||
With a few exceptions, we are currently open for audit under the statute of limitation for Federal, state and foreign jurisdictions for years 2011 to 2013. However, carryforward attributes from prior years may still be adjusted upon examination by tax authorities if they are used in a future period. | |||||||||||||
We report penalties and tax-related interest expense on unrecognized tax benefits as a component of the provision for income taxes in the accompanying consolidated statement of operations. At December 31, 2014 and 2013, we had $10.9 million and $8.3 million, respectively, of accrued interest and penalties in the accompanying consolidated balance sheet. Interest and penalties included in the provision for income taxes for the years ended December 31, 2014 and 2013 were $3.5 million and $2.4 million, respectively. | |||||||||||||
On January 1, 2013, as part of the 2012 Chapter 11 Reorganization, we realized approximately $1.3 billion of cancellation of debt income. We have excluded cancellation of debt income of $1.3 billion from taxable income since the Company was insolvent (liabilities greater than the fair value of its assets) by this amount at the time of the exchange. Although we did not have to pay current cash taxes from this transaction, it reduced our tax attributes, such as net operating loss carryovers and tax credit carryovers and also reduced our tax basis of our assets to offset the $1.3 billion of taxable income that did not have to be recognized due to insolvency. As a result, our net operating losses and credit carryforwards were reduced on January 1, 2013, and a portion of our tax basis in our assets were reduced at that time. | |||||||||||||
As of December 31, 2014, we have approximately $127.3 million of Federal tax loss carryforwards, which will expire between 2033 and 2034. The Company has approximately $124.8 million of state tax loss carryforward, which will expire between 2018 and 2034. In addition, we have foreign tax credit carryforwards of $1.5 million, which will expire through 2023. The Company’s United Kingdom and Irish net operating losses of $11.1 million and $27.2 million, respectively, are not subject to expiration. The Canadian losses ($3.3 million federal and $3.6 million for province purposes) will expire between December 31, 2029 and December 31, 2033. | |||||||||||||
In accordance with IRC Sec. 382, if certain substantial changes in the entity’s ownership occur, there would be an annual limitation on the amount of the carryforward(s) that can be utilized. | |||||||||||||
The Company’s deferred tax assets in the table above as of December 31, 2014 and December 31, 2013, do not include reductions of $9.1 million and $0.6 million, respectively, related to excess tax benefits from the exercise of employee stock options that are a component of NOLs as these benefits can only be recognized when the related tax deduction reduces income taxes payable. | |||||||||||||
Based on our assessment of historical pre-tax losses and the fact that we did not anticipate sufficient future taxable income in the near term to assure utilization of certain deferred tax assets, the Company recorded a valuation allowance at December 31, 2014 and 2013 of $550.7 million and $528.0 million, respectively. We have increased our valuation allowance by $22.7 million and $15.8 million in 2014 and 2013, respectively. | |||||||||||||
As of December 31, 2014 and 2013, the Company had $9.7 million and $0.6 million of unrecorded additional paid in capital net operating losses, respectively. All of the Company’s undistributed international earnings are intended to be indefinitely reinvested in operations outside of the United States as of December 31, 2014. |
Retirement_and_Postretirement_
Retirement and Postretirement Benefit Plans | 12 Months Ended | ||||||||||||
Dec. 31, 2014 | |||||||||||||
Compensation and Retirement Disclosure [Abstract] | |||||||||||||
Retirement and Postretirement Benefit Plans | 10 | Retirement and Postretirement Benefit Plans | |||||||||||
Retirement Plan | |||||||||||||
We have a noncontributory, qualified defined benefit pension plan (the “Retirement Plan”), which covers certain employees. The Retirement Plan is a cash balance plan, which accrues benefits based on pay, length of service, and interest. The funding policy is to contribute amounts subject to minimum funding standards set forth by the Employee Retirement Income Security Act of 1974 and the Internal Revenue Code. The Retirement Plan’s assets consist principally of common stocks, fixed income securities, investments in registered investment companies, and cash and cash equivalents. We also have a nonqualified defined benefit plan, or nonqualified plan, that previously covered employees who earned over the qualified pay limit as determined by the Internal Revenue Service. The nonqualified plan accrues benefits for the participants based on the cash balance plan calculation. The nonqualified plan is not funded. We use a December 31 date to measure the pension and postretirement liabilities. In 2007, both the qualified and nonqualified pension plans eliminated participation in the plans for new employees hired after October 31, 2007. | |||||||||||||
We also had a foreign defined benefit plan. On May 28, 2014, the plan was converted to individual annuity policies and the liability discharge occurred, which resulted in a settlement charge of approximately $1.7 million. This amount has been recorded to the selling and administrative line in our consolidated statements of operations for the year ended December 31, 2014. The foreign defined benefit plan is included in the accompanying table for year ended December 31, 2013. | |||||||||||||
We are required to recognize the funded status of defined benefit pension and other postretirement plans as an asset or liability in the balance sheet and are required to recognize actuarial gains and losses and prior service costs and credits in other comprehensive income and subsequently amortize those items in the statement of operations. Further, we are required to use a measurement date equal to the fiscal year end. | |||||||||||||
The following table summarizes the Accumulated Benefit Obligations (“ABO”), the change in Projected Benefit Obligation (“PBO”), and the funded status of our plans as of and for the financial statement period ended December 31, 2014 and 2013: | |||||||||||||
2014 | 2013 | ||||||||||||
ABO at end of period | $ | 184,510 | $ | 191,519 | |||||||||
Change in PBO | |||||||||||||
PBO at beginning of period | $ | 191,519 | $ | 204,420 | |||||||||
Foreign defined benefit plan termination | (14,934 | ) | — | ||||||||||
Service cost | — | — | |||||||||||
Interest cost on PBO | 7,671 | 7,405 | |||||||||||
Plan settlements | — | (1,446 | ) | ||||||||||
Actuarial (gain) loss | 13,338 | (9,671 | ) | ||||||||||
Benefits paid | (13,084 | ) | (9,424 | ) | |||||||||
Exchange rates | — | 235 | |||||||||||
PBO at end of period | $ | 184,510 | $ | 191,519 | |||||||||
Change in plan assets | |||||||||||||
Fair market value at beginning of period | $ | 167,114 | $ | 155,706 | |||||||||
Foreign defined benefit plan termination | (15,152 | ) | — | ||||||||||
Plan settlements | — | (1,446 | ) | ||||||||||
Actual return | 13,069 | 11,540 | |||||||||||
Company contribution | 14,038 | 10,615 | |||||||||||
Benefits paid | (13,084 | ) | (9,424 | ) | |||||||||
Exchange rates | — | 123 | |||||||||||
Fair market value at end of period | $ | 165,985 | $ | 167,114 | |||||||||
Funded status | $ | (18,525 | ) | $ | (24,405 | ) | |||||||
Amounts recognized in the consolidated balance sheets at December 31, 2014 and 2013 consist of: | |||||||||||||
2014 | 2013 | ||||||||||||
Noncurrent liabilities | $ | (18,525 | ) | $ | (24,405 | ) | |||||||
Additional year-end information for pension plans with ABO in excess of plan assets at December 31, 2014 and 2013 consist of: | |||||||||||||
2014 | 2013 | ||||||||||||
PBO | $ | 184,510 | $ | 176,585 | |||||||||
ABO | 184,510 | 176,585 | |||||||||||
Fair value of plan assets | 165,985 | 151,962 | |||||||||||
Amounts not yet reflected in net periodic benefit cost and recognized in accumulated other comprehensive income at December 31, 2014 and 2013 consist of: | |||||||||||||
2014 | 2013 | ||||||||||||
Net gain (loss) | $ | (18,143 | ) | $ | (9,536 | ) | |||||||
Accumulated other comprehensive income (loss) | $ | (18,143 | ) | $ | (9,536 | ) | |||||||
Weighted average assumptions used to determine the benefit obligations (both PBO and ABO) at December 31, 2014 and 2013 are: | |||||||||||||
2014 | 2013 | ||||||||||||
Discount rate | 3.8 | % | 4.6 | % | |||||||||
Increase in future compensation | N/A | N/A | |||||||||||
Net periodic pension cost includes the following components: | |||||||||||||
For the Year | For the Year | For the Year | |||||||||||
Ended | Ended | Ended | |||||||||||
December 31, | December 31, | December 31, | |||||||||||
2014 | 2013 | 2012 | |||||||||||
Interest cost on projected benefit obligation | $ | 7,671 | $ | 7,405 | $ | 8,288 | |||||||
Expected return on plan assets | (10,122 | ) | (10,124 | ) | (9,047 | ) | |||||||
Amortization of net (gain) loss | — | 337 | 13 | ||||||||||
Net pension expense | (2,451 | ) | (2,382 | ) | (746 | ) | |||||||
Loss (gain) due to settlement | — | 167 | 84 | ||||||||||
Net cost (gain) recognized for the period | $ | (2,451 | ) | $ | (2,215 | ) | $ | (662 | ) | ||||
Significant actuarial assumptions used to determine net periodic pension cost at December 31, 2014, 2013 and 2012 are: | |||||||||||||
2014 | 2013 | 2012 | |||||||||||
Discount rate | 4.6 | % | 3.8 | % | 4.4 | % | |||||||
Increase in future compensation | N/A | N/A | N/A | ||||||||||
Expected long-term rate of return on assets | 7 | % | 6.7 | % | 6.7 | % | |||||||
Assumptions on Expected Long-Term Rate of Return as Investment Strategies | |||||||||||||
We employ a building block approach in determining the long-term rate of return for plan assets. Historical markets are studied and long-term relationships between equities and fixed income are preserved congruent with the widely accepted capital market principle that assets with higher volatility generate a greater return over the long run. Current market factors such as inflation and interest rates are evaluated before long-term capital market assumptions are determined. The long-term portfolio return is established via a building block approach and proper consideration of diversification and rebalancing. Peer data and historical returns are reviewed for reasonability and appropriateness. We regularly review the actual asset allocation and periodically rebalances investments to a targeted allocation when appropriate. The current targeted asset allocation is 30% with equity managers, 55% with fixed income managers, 5% with real-estate investment trust managers and 10% with hedge fund managers. For 2014, we will use a 7.0% long-term rate of return for the Retirement Plan. We will continue to evaluate the expected rate of return assumption, at least annually, and will adjust as necessary. | |||||||||||||
Plan Assets | |||||||||||||
Plan assets for the U.S. tax qualified plans consist of a diversified portfolio of fixed income securities, equity securities, real estate, and cash equivalents. Plan assets do not include any of our securities. The U.S. pension plan assets are invested in a variety of funds within a Collective Trust (“Trust”). The Trust is a group trust designed to permit qualified trusts to comingle their assets for investment purposes on tax-exempt basis. As of December 31, 2013, the U.K pension plan assets were invested in a single bulk annuity policy with a third party. | |||||||||||||
Investment Policy and Investment Targets | |||||||||||||
The tax qualified plans consist of the U.S. pension plan and the U.K. pension scheme (prior to May 28, 2014). It is our practice to fund amounts for our qualified pension plans at least sufficient to meet minimum requirements of local benefit and tax laws. The investment objectives of our pension plan asset investments is to provide long-term total growth and return, which includes capital appreciation and current income. The nonqualified noncontributory defined benefit pension plan is generally not funded. Assets were invested among several asset classes. | |||||||||||||
The percentage of assets invested in each asset class at December 31, 2014 and 2013 is shown below. | |||||||||||||
2014 | Percentage | ||||||||||||
in Each | |||||||||||||
Asset Class | Asset Class | ||||||||||||
Equity | 29.7 | % | |||||||||||
Fixed income | 55.1 | ||||||||||||
Real estate investment trust | 5.1 | ||||||||||||
Other | 10.1 | ||||||||||||
100 | % | ||||||||||||
2013 | Percentage | ||||||||||||
in Each | |||||||||||||
Asset Class | Asset Class | ||||||||||||
Equity | 37.8 | % | |||||||||||
Fixed income | 43.7 | ||||||||||||
Real estate investment trust | 3.9 | ||||||||||||
Annuity policies | 8.9 | ||||||||||||
Other | 5.7 | ||||||||||||
100 | % | ||||||||||||
Fair Value Measurements | |||||||||||||
The fair value of our pension plan assets by asset category and by level at December 31 were as follows: | |||||||||||||
Year ended | Markets for | Observable | |||||||||||
December 31, | Identical Assets | Inputs | |||||||||||
2014 | (Level 1) | (Level 2) | |||||||||||
Cash and cash equivalents | $ | 1,436 | $ | 1,436 | $ | — | |||||||
Equity securities | |||||||||||||
U.S. equity | 28,630 | — | 28,630 | ||||||||||
Non U.S. equity | 14,844 | — | 14,844 | ||||||||||
Emerging markets equity | 5,763 | — | 5,763 | ||||||||||
Fixed Income | |||||||||||||
Government bonds | 22,430 | — | 22,430 | ||||||||||
Corporate bonds | 47,774 | — | 47,774 | ||||||||||
Mortgage-backed securities | 9,742 | — | 9,742 | ||||||||||
Asset-backed securities | 1,534 | — | 1,534 | ||||||||||
Commercial Mortgage-Backed Securities | 2,291 | — | 2,291 | ||||||||||
International Fixed Income | 6,610 | — | 6,610 | ||||||||||
Alternatives | |||||||||||||
Real Estate | 8,472 | — | 8,472 | ||||||||||
Hedge funds | 15,283 | — | 15,283 | ||||||||||
Other | 1,176 | — | 1,176 | ||||||||||
$ | 165,985 | $ | 1,436 | $ | 164,549 | ||||||||
For the | Quoted Prices | Significant | |||||||||||
Year ended | in Active | Other | |||||||||||
December 31, | Markets for | Observable | |||||||||||
2013 | Identical Assets | Inputs | |||||||||||
(Level 1) | (Level 2) | ||||||||||||
Cash and cash equivalents | $ | 1,619 | $ | 1,619 | $ | — | |||||||
Equity securities | |||||||||||||
U.S. equity | 41,544 | — | 41,544 | ||||||||||
Non U.S. equity | 20,156 | — | 20,156 | ||||||||||
Emerging markets equity | 1,550 | — | 1,550 | ||||||||||
Fixed Income | |||||||||||||
Government bonds | 20,230 | — | 20,230 | ||||||||||
Corporate bonds | 38,050 | — | 38,050 | ||||||||||
Mortgage-backed securities | 10,750 | — | 10,750 | ||||||||||
Asset-backed securities | 700 | — | 700 | ||||||||||
Commercial Mortgage-Backed Securities | 513 | — | 513 | ||||||||||
International Fixed Income | 2,767 | — | 2,767 | ||||||||||
Alternatives | |||||||||||||
Real Estate | 6,485 | — | 6,485 | ||||||||||
Hedge funds | 7,017 | — | 7,017 | ||||||||||
Annuity policies | 14,932 | — | 14,932 | ||||||||||
Other | 801 | — | 801 | ||||||||||
$ | 167,114 | $ | 1,619 | $ | 165,495 | ||||||||
We recognize that risk and volatility are present to some degree with all types of investments. However, high levels of risk are minimized through diversification by asset class, by style of each fund. | |||||||||||||
Estimated Future Benefit Payments | |||||||||||||
The following benefit payments are expected to be paid. | |||||||||||||
Fiscal Year Ended | Pension | ||||||||||||
2015 | 17,225 | ||||||||||||
2016 | 17,258 | ||||||||||||
2017 | 18,061 | ||||||||||||
2018 | 17,969 | ||||||||||||
2019 | 9,901 | ||||||||||||
2020—2024 | 48,154 | ||||||||||||
Expected Contributions | |||||||||||||
We expect to contribute approximately $6.8 million in 2015; however, the actual funding decision will be made after the 2015 valuation is completed. | |||||||||||||
Postretirement Benefit Plan | |||||||||||||
We also provide postretirement medical benefits to retired full-time, nonunion employees hired before April 1, 1992, who have provided a minimum of five years of service and attained age 55. | |||||||||||||
During 2012, we amended the postretirement medical benefits plan, resulting in the benefit contributions for certain participants to remain at the current year level for all future years. The result of the plan change was to reduce our accrued postretirement benefits liability by approximately $8.7 million with the offset to other comprehensive income in accordance with the accounting guidance for other postretirement defined benefit plans. | |||||||||||||
The following table summarizes the Accumulated Postretirement Benefit Obligation (“APBO”), the changes in plan assets, and the funded status of our plan as of and for the financial statement periods ended December 31, 2014 and 2013. | |||||||||||||
2014 | 2013 | ||||||||||||
Change in APBO | |||||||||||||
APBO at beginning of period | $ | 26,001 | $ | 29,573 | |||||||||
Service cost (benefits earned during the period) | 179 | 222 | |||||||||||
Interest cost on APBO | 1,361 | 1,275 | |||||||||||
Employee contributions | 591 | 641 | |||||||||||
Actuarial (gain) loss | 3,611 | (2,513 | ) | ||||||||||
Benefits paid | (3,206 | ) | (3,197 | ) | |||||||||
APBO at end of period | $ | 28,537 | $ | 26,001 | |||||||||
Change in plan assets | |||||||||||||
Fair market value at beginning of period | $ | — | $ | — | |||||||||
Company contributions | 2,615 | 2,556 | |||||||||||
Employee contributions | 591 | 641 | |||||||||||
Benefits paid | (3,206 | ) | (3,197 | ) | |||||||||
Fair market value at end of period | $ | — | $ | — | |||||||||
Funded status | $ | (28,537 | ) | $ | (26,001 | ) | |||||||
Amounts for postretirement benefits accrued in the consolidated balance sheets at December 31, 2014 and 2013 consist of: | |||||||||||||
2014 | 2013 | ||||||||||||
Current liabilities | $ | (2,037 | ) | $ | (2,141 | ) | |||||||
Noncurrent liabilities | (26,500 | ) | (23,860 | ) | |||||||||
Net amount recognized | $ | (28,537 | ) | $ | (26,001 | ) | |||||||
Amounts not yet reflected in net periodic benefit cost and recognized in accumulated other comprehensive income at December 31, 2014 and 2013 consist of: | |||||||||||||
2014 | 2013 | ||||||||||||
Net gain (loss) | $ | (6,087 | ) | $ | (2,476 | ) | |||||||
Prior service cost | 4,876 | 6,257 | |||||||||||
Accumulated other comprehensive income (loss) | $ | (1,211 | ) | $ | 3,781 | ||||||||
Weighted average actuarial assumptions used to determine APBO at year-end December 31, 2014 and 2013 are: | |||||||||||||
2014 | 2013 | ||||||||||||
Discount rate | 3.9 | % | 4.7 | % | |||||||||
Health care cost trend rate assumed for next year | 6.9 | % | 7.1 | % | |||||||||
Rate to which the cost trend rate is assumed to decline | 4.5 | % | 4.5 | % | |||||||||
(ultimate trend rate) | |||||||||||||
Year that the rate reaches the ultimate trend rate | 2027 | 2027 | |||||||||||
Net periodic postretirement benefit cost included the following components: | |||||||||||||
2014 | 2013 | 2012 | |||||||||||
Service cost | $ | 179 | $ | 222 | $ | 250 | |||||||
Interest cost on APBO | 1,183 | 1,095 | 1,269 | ||||||||||
Amortization of unrecognized prior service cost | (1,381 | ) | (1,381 | ) | (1,035 | ) | |||||||
Amortization of net (gain) loss | — | 309 | — | ||||||||||
Net periodic postretirement benefit expense | $ | (19 | ) | $ | 245 | $ | 484 | ||||||
Significant actuarial assumptions used to determine postretirement benefit cost at December 31, 2014, 2013 and 2012 are: | |||||||||||||
2014 | 2013 | 2012 | |||||||||||
Discount rate | 4.7 | % | 3.8 | % | 4.5 | % | |||||||
Health care cost trend rate assumed for next year | 7.1 | % | 7.4 | % | 7.6 | % | |||||||
Rate to which the cost trend rate is assumed to decline (ultimate trend rate) | 4.5 | % | 4.5 | % | 4.5 | % | |||||||
Year that the rate reaches the ultimate trend rate | 2027 | 2027 | 2027 | ||||||||||
Assumed health care trend rates have a significant effect on the amounts reported for the health care plans. A one-percentage-point change in assumed health care cost trend rates would have the following effects on the expense recorded in 2014 and 2013 for the postretirement medical plan: | |||||||||||||
2014 | 2013 | ||||||||||||
One-percentage-point increase | |||||||||||||
Effect on total of service and interest cost components | $ | 12 | $ | 12 | |||||||||
Effect on postretirement benefit obligation | 246 | 298 | |||||||||||
One-percentage-point decrease | |||||||||||||
Effect on total of service and interest cost components | (11 | ) | (11 | ) | |||||||||
Effect on postretirement benefit obligation | (223 | ) | (190 | ) | |||||||||
The following table presents the change in other comprehensive income for the year ended December 31, 2014 related to our pension and postretirement obligations. | |||||||||||||
Pension | Postretirement | Total | |||||||||||
Plans | Benefit | ||||||||||||
Plan | |||||||||||||
Sources of change in accumulated other comprehensive loss | |||||||||||||
Net loss arising during the period | $ | (10,370 | ) | $ | (3,611 | ) | $ | (13,981 | ) | ||||
Amortization of prior service credit | — | (1,381 | ) | (1,381 | ) | ||||||||
Total accumulated other comprehensive loss recognized during the period | $ | (10,370 | ) | $ | (4,992 | ) | $ | (15,362 | ) | ||||
Estimated amounts that will be amortized from accumulated other comprehensive income (loss) over the next fiscal year. | |||||||||||||
Total | Total | ||||||||||||
Pension | Postretirement | ||||||||||||
Plans | Plan | ||||||||||||
Prior service credit (cost) | $ | — | $ | 1,381 | |||||||||
Net gain (loss) | (331 | ) | (220 | ) | |||||||||
$ | (331 | ) | $ | 1,161 | |||||||||
Estimated Future Benefit Payments | |||||||||||||
The following benefit payments, which reflect expected future service, are expected to be paid: | |||||||||||||
Fiscal Year Ended | Postretirement | ||||||||||||
Plan | |||||||||||||
2015 | 2,037 | ||||||||||||
2016 | 1,951 | ||||||||||||
2017 | 1,925 | ||||||||||||
2018 | 1,858 | ||||||||||||
2019 | 1,844 | ||||||||||||
2020-2024 | 8,918 | ||||||||||||
Expected Contribution | |||||||||||||
We expect to contribute approximately $2.0 million in 2015. | |||||||||||||
Defined Contribution Retirement Plan | |||||||||||||
We maintain a defined contribution retirement plan, the Houghton Mifflin 401(k) Savings Plan, which conforms to Section 401(k) of the Internal Revenue Code, and covers substantially all of our eligible employees. Participants may elect to contribute up to 50.0% of their compensation subject to an annual limit. We provide a matching contribution in amounts up to 3.0% of employee contributions. The 401(k) contribution expense amounted to $5.7 million, $5.4 million and $4.9 million for the years ended December 31, 2014, December 31, 2013 and 2012, respectively. We did not make any additional discretionary contributions in 2014, 2013 and 2012. |
StockBased_Compensation
Stock-Based Compensation | 12 Months Ended | ||||||||||||||||||||
Dec. 31, 2014 | |||||||||||||||||||||
Disclosure of Compensation Related Costs, Share-based Payments [Abstract] | |||||||||||||||||||||
Stock-Based Compensation | 11 | Stock-Based Compensation | |||||||||||||||||||
The Management Incentive Plan (“MIP”) became effective on June 22, 2012. The MIP provides for grants of stock options to employees, restricted stock and restricted stock units to employees and independent members of the board of directors at a strike price equal to or greater than the fair value per share of common stock as of the date of grant. The stock related to award forfeitures and stock withheld to cover tax withholding requirements upon vesting of restricted stock units remains outstanding and may be reallocated to new recipients. There were 16,374,270 shares authorized and available for issuance on June 22, 2012. As of December 31, 2014, there were 3,217,734 shares of common stock underlying awards reserved for future issuance under the MIP. | |||||||||||||||||||||
The vesting terms for equity awards generally range from 1 to 4 years over equal annual installments and generally expire seven years after the date of grant. Restricted stock is common stock that is subject to a risk of forfeiture only upon voluntary termination or termination for cause, as defined. Total compensation expense related to stock option grants and restricted stock issuances recorded in the years ended December 31, 2014 and 2013 was approximately $11.4 million and $9.5 million respectively, and was recorded in selling and administrative expense. Total compensation expense related to stock option grants and restricted stock issuances recorded in the year ended December 31, 2012 was approximately $6.3 million of which approximately $4.3 million was recorded in selling and administrative expense and approximately $2.0 million was recorded in reorganization items, net. | |||||||||||||||||||||
Stock Options | |||||||||||||||||||||
The following tables summarize option activity for HMH employees in stock options for the periods ended December 31, 2014 and 2013: | |||||||||||||||||||||
Number of | Weighted | ||||||||||||||||||||
Shares | Average | ||||||||||||||||||||
Exercise | |||||||||||||||||||||
Price | |||||||||||||||||||||
Balance at December 31, 2012 | 9,904,562 | $ | 12.5 | ||||||||||||||||||
Granted | 3,632,012 | 13.32 | |||||||||||||||||||
Forfeited | (994,456 | ) | 12.51 | ||||||||||||||||||
Balance at December 31, 2013 | 12,542,118 | $ | 12.74 | ||||||||||||||||||
Granted | 943,600 | 19.86 | |||||||||||||||||||
Exercised | (1,876,566 | ) | 12.65 | ||||||||||||||||||
Forfeited | (641,000 | ) | 13.31 | ||||||||||||||||||
Balance at December 31, 2014 | 10,968,152 | $ | 13.33 | ||||||||||||||||||
Options Exercisable at end of year | 4,357,248 | $ | 12.66 | ||||||||||||||||||
The intrinsic value of a stock option is the amount by which the current market value of the underlying stock exceeds the exercise price of the option as of the balance sheet date. The intrinsic value of options outstanding and exercisable was approximately $81.0 million and $35.1 million, respectively, at December 31, 2014 and approximately $53.0 million and $14.1 million, respectively, at December 31, 2013. There was no intrinsic value of options outstanding and exercisable at December 31, 2012. | |||||||||||||||||||||
We estimate the fair value of stock options using the Black-Scholes valuation model. Key input assumptions used to estimate the fair value of stock options include the exercise price of the award, the expected volatility of our stock over the option’s expected term, the risk-free interest rate over the option’s expected term, and our expected annual dividend yield. | |||||||||||||||||||||
The fair value of each option granted was estimated on the grant date using the Black-Scholes valuation model with the following assumptions: | |||||||||||||||||||||
For the | For the | For the | |||||||||||||||||||
Year Ended | Year Ended | Year Ended | |||||||||||||||||||
December 31, | December 31, | December 31, | |||||||||||||||||||
2014 | 2013 | 2012 | |||||||||||||||||||
Expected term (years) (a) | 4.75 | 4.75 | 4 | ||||||||||||||||||
Expected dividend yield | 0 | % | 0 | % | 0 | % | |||||||||||||||
Expected volatility (b) | 20.40%-22.63 | % | 21.42%-24.55 | % | 24.21%-26.54 | % | |||||||||||||||
Risk-free interest rate (c) | 1.49%-1.82 | % | 0.75%-1.71 | % | 0.67%-0.76 | % | |||||||||||||||
(a) | The expected term is the number of years that we estimate that options will be outstanding prior to exercise. | ||||||||||||||||||||
(b) | We have estimated volatility for options granted based on the historical volatility for a group of companies believed to be a representative peer group, selected based on industry and market capitalization, due to lack of sufficient historical publicly traded prices of our own common stock. | ||||||||||||||||||||
(c) | The risk-free interest rate is based on the U.S. Treasury yield for a period commensurate with the expected life of the option. | ||||||||||||||||||||
The accounting standard for stock-based compensation requires companies to estimate forfeitures at the time of grant and periodically revise those estimates in subsequent periods if actual forfeitures differ from those estimates. Stock-based compensation expense is recorded only for those awards expected to vest using an estimated forfeiture rate based on historical forfeiture data coupled with and estimated derived forfeiture rate of peers. | |||||||||||||||||||||
As of December 31, 2014, there remained approximately $13.5 million of unearned compensation expense related to unvested stock options to be recognized over a weighted average term of 2.0 years. | |||||||||||||||||||||
The weighted average grant date fair value was $4.18, $2.82 and $2.76 for options granted in 2014, 2013 and 2012, respectively. | |||||||||||||||||||||
The following tables summarize information about stock options outstanding and exercisable under the plan at December 31, 2014: | |||||||||||||||||||||
Options Outstanding | Options Exercisable | ||||||||||||||||||||
Range of | Options | Weighted | Weighted | Options | Weighted | ||||||||||||||||
Outstanding at | Average | Average | Exercisable at | Average | |||||||||||||||||
Exercise | December 31, | Remaining | Exercise Price | December 31, | Exercise Price | ||||||||||||||||
2014 | Contractual life | 2014 | |||||||||||||||||||
Price | |||||||||||||||||||||
$12.50 | 8,193,586 | 4.6 | $ | 12.5 | 4,017,380 | $ | 12.5 | ||||||||||||||
$13.48 | 1,666,966 | 5.5 | $ | 13.48 | 236,868 | $ | 13.48 | ||||||||||||||
$14.78—$17.84 | 324,000 | 6.4 | $ | 16.67 | 71,000 | $ | 15.6 | ||||||||||||||
$18.28 | 6,600 | 6.4 | $ | 18.28 | — | — | |||||||||||||||
$18.51 | 40,000 | 6.4 | $ | 18.51 | — | — | |||||||||||||||
$18.80 | 20,000 | 6.7 | $ | 18.8 | — | — | |||||||||||||||
$19.24 | 10,000 | 6 | $ | 19.24 | — | — | |||||||||||||||
$19.89 | 32,000 | 9.2 | $ | 19.89 | 32,000 | $ | 19.89 | ||||||||||||||
$20.35 | 50,000 | 6.3 | $ | 20.35 | — | — | |||||||||||||||
$20.49 | 625,000 | 6.9 | $ | 20.49 | — | — | |||||||||||||||
$12.50—$20.49 | 10,968,152 | 4.9 | $ | 13.33 | 4,357,248 | $ | 12.66 | ||||||||||||||
Restricted Stock Units | |||||||||||||||||||||
The following table summarizes restricted stock activity for grants to certain employees and independent members of the board of directors in our restricted stock units: | |||||||||||||||||||||
Numbers of | Weighted | ||||||||||||||||||||
Units | Average | ||||||||||||||||||||
Grant Date | |||||||||||||||||||||
Fair Value | |||||||||||||||||||||
Balance at December 31, 2012 | 44,400 | $ | 12.5 | ||||||||||||||||||
Granted | 221,802 | 14.11 | |||||||||||||||||||
Vested | (44,400 | ) | 12.5 | ||||||||||||||||||
Balance at December 31, 2013 | 221,802 | $ | 14.11 | ||||||||||||||||||
Granted | 86,239 | $ | 18.82 | ||||||||||||||||||
Vested | (135,136 | ) | 13.12 | ||||||||||||||||||
Forfeited | (1,040 | ) | 19.24 | ||||||||||||||||||
Balance at December 31, 2014 | 171,865 | $ | 17.22 | ||||||||||||||||||
Fair_Value_Measurements
Fair Value Measurements | 12 Months Ended | ||||||||||||||||
Dec. 31, 2014 | |||||||||||||||||
Fair Value Disclosures [Abstract] | |||||||||||||||||
Fair Value Measurements | 12 | Fair Value Measurements | |||||||||||||||
The accounting standard for fair value measurements among other things, defines fair value, establishes a consistent framework for measuring fair value and expands disclosure for each major asset and liability category measured at fair value on either a recurring or nonrecurring basis. The accounting standard establishes a three-tier fair value hierarchy which prioritizes the inputs used in measuring fair value as follows: | |||||||||||||||||
Level 1 | Observable input such as quoted prices in active markets for identical assets or liabilities; | ||||||||||||||||
Level 2 | Observable inputs, other than the quoted prices in active markets, that are observable either directly or indirectly; and | ||||||||||||||||
Level 3 | Unobservable inputs in which there is little or no market data, which require the reporting entity to develop its own assumptions. | ||||||||||||||||
Assets and liabilities measured at fair value are based on one or more of three valuation techniques identified in the tables below. Where more than one technique is noted, individual assets or liabilities were valued using one or more of the noted techniques. The valuation techniques are as follows: | |||||||||||||||||
(a) | Market approach: Prices and other relevant information generated by market transactions involving identical or comparable assets or liabilities; | ||||||||||||||||
(b) | Cost approach: Amount that would be currently required to replace the service capacity of an asset (current replacement cost); and | ||||||||||||||||
(c) | Income approach: Valuation techniques to convert future amounts to a single present amount based on market expectations (including present value techniques). | ||||||||||||||||
On a recurring basis, we measure certain financial assets and liabilities at fair value, including our money market funds, short-term investments which consist of U.S. treasury securities and U.S. agency securities, and foreign exchange forward and option contracts. The accounting standard for fair value measurements defines fair value as the price that would be received to sell an asset or paid to transfer a liability in an orderly transaction between market participants at the measurement date. As such, fair value is a market-based measurement that should be determined based on assumptions that market participants would use in pricing an asset or liability. In determining fair value, we utilize valuation techniques that maximize the use of observable inputs and minimize the use of unobservable inputs to the extent possible as well as consider counterparty and its credit risk in its assessment of fair value. | |||||||||||||||||
The following tables present our financial assets and liabilities measured at fair value on a recurring basis at December 31, 2014 and December 31, 2013: | |||||||||||||||||
2014 | Quoted Prices | Significant | Valuation | ||||||||||||||
in Active | Other | Technique | |||||||||||||||
Markets for | Observable | ||||||||||||||||
Identical Assets | Inputs | ||||||||||||||||
(Level 1) | (Level 2) | ||||||||||||||||
Financial assets | |||||||||||||||||
Money market funds | $ | 438,907 | $ | 438,907 | $ | — | (a) | ||||||||||
U.S. treasury securities | 93,004 | 93,004 | — | (a) | |||||||||||||
U.S. agency securities | 194,028 | — | 194,028 | (a) | |||||||||||||
$ | 725,939 | $ | 531,911 | $ | 194,028 | ||||||||||||
Financial liabilities | |||||||||||||||||
Foreign exchange derivatives | $ | 1,370 | $ | — | $ | 1,370 | (a) | ||||||||||
$ | 1,370 | $ | — | $ | 1,370 | ||||||||||||
2013 | Quoted Prices | Significant | Valuation | ||||||||||||||
in Active | Other | Technique | |||||||||||||||
Markets for | Observable | ||||||||||||||||
Identical Assets | Inputs | ||||||||||||||||
(Level 1) | (Level 2) | ||||||||||||||||
Financial assets | |||||||||||||||||
Money market funds | $ | 259,031 | $ | 259,031 | $ | — | (a | ) | |||||||||
U.S. treasury securities | 57,076 | 57,076 | — | (a | ) | ||||||||||||
U.S. agency securities | 54,645 | — | 54,645 | (a | ) | ||||||||||||
Foreign exchange derivatives | 222 | — | 222 | (a | ) | ||||||||||||
$ | 370,974 | $ | 316,107 | $ | 54,867 | ||||||||||||
Our money market funds and U.S. treasury securities are classified within Level 1 of the fair value hierarchy because they are valued using quoted prices in active markets for identical instruments. Our U.S. agency securities are classified within level 2 of the fair value hierarchy because they are valued using other than quoted prices in active markets. In addition to $438.9 million and $259.0 million invested in money market funds as of December 31, 2014 and December 31, 2013, respectively, we had $17.7 million and $54.6 million of cash invested in bank accounts as of December 31, 2014 and December 31, 2013, respectively. | |||||||||||||||||
Our foreign exchange derivatives consist of forward and option contracts and are classified within Level 2 of the fair value hierarchy because they are valued based on observable inputs and are available for substantially the full term of our derivative instruments. We use foreign exchange forward and option contracts to fix the functional currency value of forecasted commitments, payments and receipts. The aggregate notional amount of the outstanding foreign exchange forward and option contracts was $18.7 million and $24.1 million at December 31, 2014 and December 31, 2013, respectively. Our foreign exchange forward and option contracts contain netting provisions to mitigate credit risk in the event of counterparty default, including payment default and cross default. At December 31, 2014 and December 31, 2013, the fair value of our counterparty default exposure was less than $1.0 million and spread across several highly rated counterparties. | |||||||||||||||||
The following table presents our nonfinancial assets and liabilities measured at fair value on a nonrecurring basis during 2014 and 2013: | |||||||||||||||||
2014 | Significant | Total | Valuation | ||||||||||||||
Unobservable | Impairment | Technique | |||||||||||||||
Inputs | |||||||||||||||||
(Level 3) | |||||||||||||||||
Nonfinancial assets | |||||||||||||||||
Investment in preferred stock | $ | — | $ | — | $ | 1,279 | (b) | ||||||||||
Other intangible assets | 3,800 | 3,800 | 400 | (a)(c) | |||||||||||||
$ | 3,800 | $ | 3,800 | $ | 1,679 | ||||||||||||
2013 | Significant | Total | Valuation | ||||||||||||||
Unobservable | Impairment | Technique | |||||||||||||||
Inputs | |||||||||||||||||
(Level 3) | |||||||||||||||||
Nonfinancial assets | |||||||||||||||||
Property, plant, and equipment | $ | — | $ | — | $ | 7,439 | (b) | ||||||||||
Pre-publication costs | — | — | 1,061 | (b) | |||||||||||||
Other intangible assets | 4,200 | 4,200 | 500 | (a)(c) | |||||||||||||
$ | 4,200 | $ | 4,200 | $ | 9,000 | ||||||||||||
Nonfinancial liabilities | |||||||||||||||||
Contingent consideration liability associated with acquisitions | $ | 1,881 | $ | 1,881 | $ | — | (c) | ||||||||||
$ | 1,881 | $ | 1,881 | $ | — | ||||||||||||
Our nonfinancial assets, which include goodwill, other intangible assets, property, plant, and equipment, and pre-publication costs, are not required to be measured at fair value on a recurring basis. However, if certain trigger events occur, or if an annual impairment test is required, we evaluate the nonfinancial assets for impairment. If an impairment did occur, the asset is required to be recorded at the estimated fair value. | |||||||||||||||||
We review software and platform development costs, included within property, plant, and equipment, for impairment. There was no impairment for the year ended December 31, 2014. For the year ended December 31, 2013, software development costs of $7.4 million were impaired as the products will not be sold in the marketplace. | |||||||||||||||||
Pre-publication costs recorded on the balance sheet are periodically reviewed for impairment by comparing the unamortized capitalized costs of the assets to the fair value of those assets. There was no impairment for the year ended December 31, 2014. For the year ended December 31, 2013, pre-publication costs of $1.1 million were impaired as the programs will not be sold in the marketplace. | |||||||||||||||||
In evaluating goodwill for impairment, we first compare our reporting unit’s fair value to its carrying value. We estimate the fair values of our reporting units by considering market multiple and recent transaction values of peer companies, where available, and projected discounted cash flows, if reasonably estimable. There was no impairment recorded for goodwill for the years ended December 31, 2014 and 2013. | |||||||||||||||||
We perform an impairment test for our other intangible assets by comparing the assets fair value to its carrying value. Fair value is estimated based on recent market transactions, where available, and projected discounted cash flows, if reasonably estimable. There was a $0.4 million and $0.5 million impairment recorded for the years ended December 31, 2014 and 2013, respectively, relating to two specific tradename intangible assets. The fair value of goodwill and other intangible assets are estimates, which are inherently subject to significant uncertainties, and actual results could vary significantly from these estimates. | |||||||||||||||||
Other accruals include restructuring charges which were valued using our internal estimates using a discounted cash flow model, and we have classified the other accruals as Level 3 in the fair value hierarchy. | |||||||||||||||||
The fair value of an acquisition-related contingent consideration liability is affected most significantly by changes in the estimated probabilities of the contingencies being achieved. | |||||||||||||||||
The following table presents a summary of changes in fair value of the Company’s Level 3 liabilities measured on a recurring basis for 2014 and 2013: | |||||||||||||||||
Level 3 | |||||||||||||||||
Inputs | |||||||||||||||||
Liabilities | |||||||||||||||||
Balance at December 31, 2012 | $ | 5,055 | |||||||||||||||
Change in fair value of contingent consideration liability, included in selling and administrative expenses | (1,781 | ) | |||||||||||||||
Change in fair value of contingent consideration liability, included in interest expense | 182 | ||||||||||||||||
Payments of contingent consideration liability | (1,575 | ) | |||||||||||||||
Balance at December 31, 2013 | 1,881 | ||||||||||||||||
Change in fair value of contingent consideration liability, included in selling and administrative expenses | (2,000 | ) | |||||||||||||||
Change in fair value of contingent consideration liability, included in interest expense | 119 | ||||||||||||||||
Balance at December 31, 2014 | $ | — | |||||||||||||||
Fair Value of Debt | |||||||||||||||||
The following table presents the carrying amounts and estimated fair market values of our debt at December 31, 2014 and December 31, 2013. The fair value of debt is deemed to be the amount at which the instrument could be exchanged in an orderly transaction between market participants at the measurement date. | |||||||||||||||||
December 31, 2014 | December 31, 2013 | ||||||||||||||||
Carrying | Estimated | Carrying | Estimated | ||||||||||||||
Amount | Fair Value | Amount | Fair Value | ||||||||||||||
Debt | |||||||||||||||||
$250,000 Term loan | $ | 243,125 | $ | 242,517 | $ | 245,625 | $ | 247,774 | |||||||||
The fair market values of our debt were estimated based on quoted market prices on a private exchange for those instruments that are traded and are classified as level 2 within the fair value hierarchy, at December 31, 2014 and, 2013. The fair market values require varying degrees of management judgment. The factors used to estimate these values may not be valid on any subsequent date. Accordingly, the fair market values of the debt presented may not be indicative of their future values. |
Commitments_and_Contingencies
Commitments and Contingencies | 12 Months Ended | ||||
Dec. 31, 2014 | |||||
Commitments and Contingencies Disclosure [Abstract] | |||||
Commitments and Contingencies | 13 | Commitments and Contingencies | |||
Lease Obligations | |||||
We have operating leases for various real property, office facilities, and warehouse equipment that expire at various dates through 2019. Certain leases contain renewal and escalation clauses for a proportionate share of operating expenses. | |||||
The future minimum rental commitments under all noncancelable leases (with initial or remaining lease terms in excess of one year) for real estate and equipment are payable as follows: | |||||
Operating | |||||
Leases | |||||
2015 | 42,547 | ||||
2016 | 36,883 | ||||
2017 | 18,949 | ||||
2018 | 14,786 | ||||
2019 | 11,997 | ||||
Thereafter | 33,600 | ||||
Total minimum lease payments | 158,762 | ||||
Total future minimal rentals under subleases | 26,239 | ||||
For the years ended December 31, 2014, 2013 and 2012 rent expense, net of sublease income, was $26.8 million, $33.9 million and $38.0 million, respectively. For the years ended December 31, 2014, 2013 and 2012, the rent expense included a $2.3 million, $2.2 million and $4.1 million charge as additional real estate was vacated. | |||||
Contingencies | |||||
We are involved in ordinary and routine litigation and matters incidental to our business. Litigation alleging infringement of copyrights and other intellectual property rights has become extensive in the educational publishing industry. Specifically, there have been various settled, pending and threatened litigation that allege we exceeded the print run limitation or other restrictions in licenses granted to us to reproduce photographs in our textbooks. While management believes that there is a reasonable possibility we may incur a loss associated with the pending and threatened litigation, we are not able to estimate such amount, but we do not expect any of these matters to have a material adverse effect on our results of operations, financial position or cash flows. We have insurance over such amounts and with coverage and deductibles as management believes is reasonable. There can be no assurance that our liability insurance will cover all events or that the limits of coverage will be sufficient to fully cover all liabilities. We were contingently liable for $11.3 million and $23.0 million of performance related surety bonds for our operating activities as of December 31, 2014 and 2013, respectively. An aggregate of $20.2 million and $19.7 million of letters of credit existed each year at December 31, 2014 and 2013 of which $2.4 million backed the aforementioned performance related surety bonds each year in 2014 and 2013. | |||||
We routinely enter into standard indemnification provisions as part of license agreements involving use of our intellectual property. These provisions typically require us to indemnify and hold harmless licensees in connection with any infringement claim by a third party relating to the intellectual property covered by the license agreement. The assessment business routinely enters into contracts with customers that contain provisions requiring us to indemnify the customer against a broad array of potential liabilities resulting from any breach of the contract or the invalidity of the test. Although the term of these provisions and the maximum potential amounts of future payments we could be required to make is not limited, we have never incurred any costs to defend or settle claims related to these types of indemnification provisions. We therefore believe the estimated fair value of these provisions is inconsequential, and have no liabilities recorded for them as of December 31, 2014 and December 31, 2013. | |||||
Concentration of Credit Risk and Significant Customers | |||||
As of December 31, 2014, no individual customer comprised more than 10% of our accounts receivable balance. We believe that our accounts receivable credit risk exposure is limited and we have not experienced significant write-downs in our accounts receivable balances. | |||||
As of December 31, 2013, two customers represented approximately $104.8 million, or 32.9%, of our accounts receivable, net balance and there existed a payable by the Company to one of the same customers in the amount of $4.6 million and there is a contractual right to offset with such customer. |
Related_Party_Transactions
Related Party Transactions | 12 Months Ended | |
Dec. 31, 2014 | ||
Related Party Transactions [Abstract] | ||
Related Party Transactions | 14 | Related Party Transactions |
As discussed in Note 2, upon the Company’s emergence from Chapter 11 bankruptcy proceedings, holders of the Term Loan, Revolving Loan, and 10.5% Senior Notes were issued post-emergence shares of new common stock pursuant to the final Plan on a pro rata basis. Certain of these holders of the Term Loan, Revolving Loan, and 10.5% Senior Notes were also equity holders prior to the consummation of the Plan. The amount of the gain attributable to the debt to equity conversion, net of elimination of fees and other charges, of $1,010.3 million, which is associated to the holders of the Term Loan, Revolving Loan, and 10.5% Senior Notes that were also equity holders prior to the consummation of the Plan, was charged to capital in excess of par value. | ||
A company controlled by an immediate family member of our Chief Executive Officer performed web-design services for the Company in 2014. For the year ended December 31, 2014, we were billed $0.4 million for those services. |
Net_Loss_Per_Share
Net Loss Per Share | 12 Months Ended | ||||||||||||
Dec. 31, 2014 | |||||||||||||
Earnings Per Share [Abstract] | |||||||||||||
Net Loss Per Share | 15 | Net Loss Per Share | |||||||||||
The following table sets forth the computation of basic and diluted earnings per share (“EPS”): | |||||||||||||
For the Year | For the Year | For the Year | |||||||||||
Ended | Ended | Ended | |||||||||||
December 31, | December 31, | December 31, | |||||||||||
2014 | 2013 | 2012 | |||||||||||
Numerator | |||||||||||||
Net loss attributable to common stockholders | $ | (111,491 | ) | $ | (111,186 | ) | $ | (87,139 | ) | ||||
Denominator | |||||||||||||
Weighted average shares outstanding | |||||||||||||
Basic | 140,594,689 | 139,928,650 | 340,918,128 | ||||||||||
Diluted | 140,594,689 | 139,928,650 | 340,918,128 | ||||||||||
Net loss per share attributable to common stockholders | |||||||||||||
Basic | $ | (0.79 | ) | $ | (0.79 | ) | $ | (0.26 | ) | ||||
Diluted | $ | (0.79 | ) | $ | (0.79 | ) | $ | (0.26 | ) | ||||
As we incurred a net loss in each of the periods presented above, all outstanding stock options and restricted stock units have an anti-dilutive effect and therefore are excluded from the computation of diluted weighted average shares outstanding. Accordingly, basic and diluted weighted average shares outstanding are equal for such periods. | |||||||||||||
The following table summarizes our weighted average outstanding common stock equivalents that were anti-dilutive due to the net loss attributable to common stockholders during the periods, and therefore excluded from the computation of diluted EPS: | |||||||||||||
For the Year | For the Year | For the Year | |||||||||||
Ended | Ended | Ended | |||||||||||
December 31, | December 31, | December 31, | |||||||||||
2014 | 2013 | 2012 | |||||||||||
Stock options | 10,341,948 | 10,921,049 | 6,609,382 | ||||||||||
Restricted stock units | 153,314 | 166,928 | 141,086 |
Segment_Reporting
Segment Reporting | 12 Months Ended | ||||||||||||||||
Dec. 31, 2014 | |||||||||||||||||
Segment Reporting [Abstract] | |||||||||||||||||
Segment Reporting | 16 | Segment Reporting | |||||||||||||||
As of December 31, 2014, we had two reportable segments (Education and Trade Publishing). Our Education segment provides educational products, technology platforms and services to meet the diverse needs of today’s classrooms. These products and services include print and digital content in the form of textbooks, digital courseware, instructional aids, educational assessment and intervention solutions, which are aimed at improving achievement and supporting learning for students that are not keeping pace with peers, professional development and school reform services. Our Trade Publishing segment primarily develops, markets and sells consumer books in print and digital formats and licenses book rights to other publishers and electronic businesses in the United States and abroad. The principal markets for Trade Publishing products are retail stores, both physical and online, and wholesalers. Reference materials are also sold to schools, colleges, libraries, office supply distributors and other businesses. | |||||||||||||||||
We measure and evaluate our reportable segments based on segment Adjusted EBITDA. We exclude from segment Adjusted EBITDA certain corporate related expenses, as our corporate functions do not meet the definition of a segment, as defined in the accounting guidance relating to segment reporting. In addition, certain transactions or adjustments that our Chief Operating Decision Maker considers to be unusual and/or non-operational, such as amounts related to goodwill and other intangible asset impairment charges and restructuring related charges, as well as amortization expenses, are excluded from segment Adjusted EBITDA. Although we exclude these amounts from segment Adjusted EBITDA, they are included in reported consolidated operating income (loss) and are included in the reconciliation below. | |||||||||||||||||
(in thousands) | Year Ended December 31, | Total | |||||||||||||||
Education | Trade | Corporate/ | |||||||||||||||
Publishing | Other | ||||||||||||||||
2014 | |||||||||||||||||
Net sales | $ | 1,209,142 | $ | 163,174 | $ | — | $ | 1,372,316 | |||||||||
Segment adjusted EBITDA | 298,483 | 12,675 | (45,775 | ) | 265,383 | ||||||||||||
2013 | |||||||||||||||||
Net sales | $ | 1,207,908 | $ | 170,704 | $ | — | $ | 1,378,612 | |||||||||
Segment adjusted EBITDA | 343,183 | 24,448 | (42,613 | ) | 325,018 | ||||||||||||
2012 | |||||||||||||||||
Net sales | $ | 1,128,591 | $ | 157,050 | $ | — | $ | 1,285,641 | |||||||||
Segment adjusted EBITDA | 329,723 | 28,774 | (38,685 | ) | 319,812 | ||||||||||||
Reconciliation of Adjusted EBITDA to the consolidated statements of operations is as follows: | |||||||||||||||||
(in thousands) | Year Ended December 31, | ||||||||||||||||
2014 | 2013 | 2012 | |||||||||||||||
Total Segment Adjusted EBITDA | $ | 265,383 | $ | 325,018 | $ | 319,812 | |||||||||||
Interest expense | (18,245 | ) | (21,344 | ) | (123,197 | ) | |||||||||||
Depreciation expense | (72,290 | ) | (61,705 | ) | (58,131 | ) | |||||||||||
Amortization expense | (247,487 | ) | (280,271 | ) | (370,291 | ) | |||||||||||
Stock compensation | (11,376 | ) | (9,524 | ) | (4,227 | ) | |||||||||||
Gain (loss) on derivative instruments | (1,593 | ) | (252 | ) | 1,688 | ||||||||||||
Asset impairment charges | (1,679 | ) | (9,000 | ) | (8,003 | ) | |||||||||||
Purchase accounting adjustments | (3,661 | ) | (11,460 | ) | 16,511 | ||||||||||||
Fees, expenses or charges for equity offerings, debt or acquisitions | (4,424 | ) | (23,540 | ) | (267 | ) | |||||||||||
Debt restructuring | — | (598 | ) | — | |||||||||||||
Restructuring | (2,577 | ) | (3,123 | ) | (6,716 | ) | |||||||||||
Severance, separation costs and facility closures | (7,300 | ) | (13,040 | ) | (9,375 | ) | |||||||||||
Reorganization items, net | — | — | 149,114 | ||||||||||||||
Loss from continuing operations before taxes | (105,249 | ) | (108,839 | ) | (93,082 | ) | |||||||||||
Provision (benefit) for income taxes | 6,242 | 2,347 | (5,943 | ) | |||||||||||||
Net loss | $ | (111,491 | ) | $ | (111,186 | ) | $ | (87,139 | ) | ||||||||
Segment information as of December 31, 2014 and 2013 is as follows: | |||||||||||||||||
(in thousands) | |||||||||||||||||
2014 | 2013 | ||||||||||||||||
Total assets—Education segment | $ | 2,003,683 | $ | 2,206,690 | |||||||||||||
Total assets—Trade Publishing segment | 218,530 | 231,918 | |||||||||||||||
Total assets—Corporate and Other | 788,894 | 471,778 | |||||||||||||||
$ | 3,011,107 | $ | 2,910,386 | ||||||||||||||
Schedule of long-lived assets as of December 31, 2014 and 2013 is as follows: | |||||||||||||||||
The following represents long-lived assets outside of the United States, which are substantially in Ireland. All other long-lived assets are located in the United States. | |||||||||||||||||
(in thousands) | 2014 | 2013 | |||||||||||||||
Long-lived assets - International | $ | 4,239 | $ | 13,425 | |||||||||||||
The following is a schedule of net sales by geographic region: | |||||||||||||||||
(in thousands) | |||||||||||||||||
Year Ended December 31, 2014 | |||||||||||||||||
Net sales—U.S. | $ | 1,291,199 | |||||||||||||||
Net sales—International | 81,117 | ||||||||||||||||
Total net sales | $ | 1,372,316 | |||||||||||||||
Year Ended December 31, 2013 | |||||||||||||||||
Net sales—U.S. | $ | 1,296,563 | |||||||||||||||
Net sales—International | 82,049 | ||||||||||||||||
Total net sales | $ | 1,378,612 | |||||||||||||||
Year Ended December 31, 2012 | |||||||||||||||||
Net sales—U.S. | $ | 1,206,972 | |||||||||||||||
Net sales—International | 78,669 | ||||||||||||||||
Total net sales | $ | 1,285,641 |
Valuation_and_Qualifying_Accou
Valuation and Qualifying Accounts | 12 Months Ended | ||||||||||||||||
Dec. 31, 2014 | |||||||||||||||||
Valuation and Qualifying Accounts [Abstract] | |||||||||||||||||
Valuation and Qualifying Accounts | 17 | Valuation and Qualifying Accounts | |||||||||||||||
Balance at | Net Charges | Utilization of | Balance at | ||||||||||||||
Beginning | to Revenues | Allowances | End of | ||||||||||||||
of Year | or Expenses | Year | |||||||||||||||
and | |||||||||||||||||
Additions | |||||||||||||||||
2014 | |||||||||||||||||
Allowance for doubtful accounts | $ | 5,084 | $ | 3,274 | $ | (2,733 | ) | $ | 5,625 | ||||||||
Reserve for returns | 35,548 | 53,877 | (67,266 | ) | 22,159 | ||||||||||||
Reserve for royalty advances | 41,248 | 13,829 | (77 | ) | 55,000 | ||||||||||||
Deferred tax valuation allowance | 527,960 | 25,947 | (3,247 | ) | 550,660 | ||||||||||||
2013 | |||||||||||||||||
Allowance for doubtful accounts | $ | 10,543 | $ | 2,261 | $ | (7,720 | ) | $ | 5,084 | ||||||||
Reserve for returns | 25,784 | 58,290 | (48,526 | ) | 35,548 | ||||||||||||
Reserve for royalty advances | 26,194 | 16,949 | (1,895 | ) | 41,248 | ||||||||||||
Deferred tax valuation allowance | 512,234 | 15,726 | — | 527,960 | |||||||||||||
2012 | |||||||||||||||||
Allowance for doubtful accounts | $ | 18,229 | $ | 2,113 | $ | (9,799 | ) | $ | 10,543 | ||||||||
Reserve for returns | 25,614 | 44,213 | (44,043 | ) | 25,784 | ||||||||||||
Reserve for royalty advances | 12,252 | 14,536 | (594 | ) | 26,194 | ||||||||||||
Deferred tax valuation allowance (1) | 822,485 | — | (310,251 | ) | 512,234 | ||||||||||||
-1 | Deferred tax valuation allowance was reduced in connection with the accounting for emergence from bankruptcy in the year ended December 31, 2012. |
Quarterly_Results_of_Operation
Quarterly Results of Operations (Unaudited) | 12 Months Ended | ||||||||||||||||
Dec. 31, 2014 | |||||||||||||||||
Quarterly Financial Information Disclosure [Abstract] | |||||||||||||||||
Quarterly Results of Operations (Unaudited) | 18 | Quarterly Results of Operations (Unaudited) | |||||||||||||||
Three Months Ended | |||||||||||||||||
March 31, | June 30, | September 30, | December 31, | ||||||||||||||
2014:00:00 | |||||||||||||||||
Net sales | $ | 153,933 | $ | 401,890 | $ | 551,008 | $ | 265,485 | |||||||||
Gross profit | 1,560 | 178,255 | 287,102 | 81,356 | |||||||||||||
Operating income (loss) | (140,152 | ) | 18,324 | 116,151 | (79,734 | ) | |||||||||||
Net income (loss) | (146,335 | ) | 11,548 | 107,030 | (83,734 | ) | |||||||||||
2013:00:00 | |||||||||||||||||
Net sales | $ | 166,594 | $ | 362,951 | $ | 550,190 | $ | 298,877 | |||||||||
Gross profit | 13,927 | 140,562 | 270,124 | 107,637 | |||||||||||||
Operating income (loss) | (128,989 | ) | (5,639 | ) | 107,535 | (59,552 | ) | ||||||||||
Net income (loss) | (137,381 | ) | (14,266 | ) | 105,112 | (64,651 | ) | ||||||||||
Our net sales, operating profit or loss and net cash provided by or used in operations are impacted by the inherent seasonality of the academic calendar. Consequently, the performance of our businesses may not be comparable quarter to consecutive quarter and should be considered on the basis of results for the whole year or by comparing results in a quarter with results in the same quarter for the previous year. | |||||||||||||||||
During the first quarter of 2014, we recorded an out-of-period correction of approximately $1.1 million reducing net sales and increasing deferred revenue that should have been deferred previously. In addition, during the first quarter of 2014, we recorded approximately $3.5 million of incremental expense, primarily commissions, related to the prior year. These out-of-period corrections had no impact on our debt covenant compliance. Management believes these out-of-period corrections are not material to the current period financial statements or any previously issued financial statements. Additionally, we revised previously reported balance sheet amounts to severance and other charges of $7.3 million, which has been reclassified as long-term, and to current deferred revenue of $5.2 million, which has also been reclassified as long-term. The revision was not material to the reported consolidated balance sheet for any previously filed periods. | |||||||||||||||||
During the fourth quarter of 2013, we recorded an out-of-period correction of approximately $5.7 million of additional net sales that was deferred and should have been recognized previously in 2011 ($4.5 million), 2012 ($0.9 million), and the first nine months of 2013 ($0.3 million). In addition, during 2013, we recorded approximately $2.6 million of incremental expense related to prior years. These out-of-period corrections had no impact on cash or debt covenants compliance. Management believes these out-of-period corrections are not material to the current period financial statements or any previously issued financial statements. | |||||||||||||||||
The fourth quarter of 2013 was positively impacted by an agreement with a reseller for product sales in private, parochial, and charter school markets. The net effect of reseller activity was a decrease in net sales of $62.6 million for the fourth quarter of 2014 as compared to the same period in 2013. | |||||||||||||||||
Significant_Accounting_Policie1
Significant Accounting Policies (Policies) | 12 Months Ended | ||||
Dec. 31, 2014 | |||||
Accounting Policies [Abstract] | |||||
Principles of Consolidation | Principles of Consolidation | ||||
Our accompanying consolidated financial statements include the results of operations of the Company and our wholly-owned subsidiaries. All material intercompany accounts and transactions are eliminated in consolidation. | |||||
Use of Estimates | Use of Estimates | ||||
The preparation of financial statements in conformity with accounting principles generally accepted in the United States of America requires the use of estimates, assumptions and judgments by management that affect the reported amounts of assets, liabilities, revenues, expenses, and related disclosure of contingent assets and liabilities in the amounts reported in the financial statements and accompanying notes. On an ongoing basis, we evaluate our estimates and assumptions including, but not limited to, book returns, allowance for bad debts, recoverability of advances to authors, valuation of inventory, depreciation and amortization periods, recoverability of long-term assets such as property, plant, and equipment, capitalized pre-publication costs, other identified intangibles, goodwill, deferred revenue, income taxes, pensions and other postretirement benefits, contingencies, and litigation. We base our estimates on historical experience and on various other assumptions that we believe to be reasonable under the circumstances, the results of which form the basis for making judgments about the carrying value of assets and liabilities that are not readily apparent from other sources. Actual results may differ from those estimates. | |||||
Revenue Recognition | Revenue Recognition | ||||
We derive revenue primarily from the sale of print and digital content and instructional materials, trade books, reference materials, assessment materials and multimedia instructional programs; license fees for book rights, content and software; and services that include test development, test delivery, test scoring, professional development, consulting and training as well as access to hosted interactive content. Revenue is recognized only once persuasive evidence of an arrangement with the customer exists, the sales price is fixed or determinable, delivery of products or services has occurred, title and risk of loss with respect to products have transferred to the customer, all significant obligations, if any, have been performed, and collection is probable. | |||||
We enter into certain contractual arrangements that have multiple elements, one or more of which may be delivered subsequent to the delivery of other elements. These multiple-deliverable arrangements may include print and digital media, professional development services, training, software licenses, access to hosted content, and various services related to the software including but not limited to hosting, maintenance and support, and implementation. For these multiple-element arrangements, we allocate revenue to each deliverable of the arrangement based on the relative selling prices of the deliverables. In such circumstances, we first determine the selling price of each deliverable based on (i) vendor-specific objective evidence of fair value (“VSOE”) if that exists, (ii) third-party evidence of selling price (“TPE”) when VSOE does not exist, or (iii) our best estimate of the selling price when neither VSOE nor TPE exists. Revenue is then allocated to the non-software deliverables as a group and to the software deliverables as a group using the relative selling prices of each of the deliverables in the arrangement, based on the selling price hierarchy. Non-software deliverables include print and digital textbooks and instructional materials, trade books, reference materials, assessment materials and multimedia instructional programs; licenses to book rights and content; access to hosted content; and services including test development, test delivery, test scoring, professional development, consulting and training when those services do not relate to software deliverables. Software deliverables include software licenses, software maintenance and support services, professional services and training when those services relate to software deliverables. | |||||
For the non-software deliverables, we determine the revenue for each deliverable based on its relative selling price in the arrangement and we recognize revenue upon delivery of the product or service, assuming all other revenue recognition criteria have been met. Revenue for test delivery, test scoring and training is recognized when the service has been completed. Revenue for test development, professional development, consulting and training is recognized as the service is provided. Revenue for access to hosted interactive content is recognized ratably over the term of the arrangement. | |||||
For the software deliverables as a group, we recognize revenue in accordance with the authoritative guidance for software revenue recognition. As our software licenses are typically sold with maintenance and support, professional services or training, we use the residual method to determine the amount of software license revenue to be recognized. Under the residual method, arrangement consideration of the software deliverables as a group is allocated to the undelivered elements based upon VSOE of those elements, with the residual amount of the arrangement fee allocated to and recognized as license revenue upon delivery, assuming all other revenue recognition criteria have been met. If VSOE of one or more of the undelivered services or other elements does not exist, all revenues of the software-deliverables arrangement are deferred until delivery of all of those services or other elements has occurred, or until VSOE of each of those services or other elements can be established. | |||||
As products are shipped with right of return, a provision for estimated returns on these sales is made at the time of sale based on historical experience. | |||||
Shipping and handling fees charged to customers are included in net sales. | |||||
Advertising Costs and Sample Expenses | Advertising Costs and Sample Expenses | ||||
Advertising costs are charged to selling and administrative expenses as incurred. Advertising costs were $8.6 million, $8.0 million and $6.7 million for the years ended December 31, 2014, 2013 and 2012, respectively. Sample expenses are charged to selling and administrative expenses when the samples are shipped. | |||||
Cash and Cash Equivalents | Cash and Cash Equivalents | ||||
Cash and cash equivalents consist primarily of cash in banks and highly liquid investment securities that have maturities of three months or less when purchased. The carrying amount of cash equivalents approximates fair value because of the short term maturity of these investments. | |||||
Short-term Investments | Short-term Investments | ||||
Short-term investments typically consist of marketable securities with maturities between three and twelve months at the balance sheet date. We have classified all of our short-term investments as available-for-sale at December 31, 2014 and 2013. The investments are reported at fair value, with any unrealized gains or losses excluded from earnings and reported as a separate component of stockholders’ equity as other comprehensive income (loss). | |||||
Accounts Receivable | Accounts Receivable | ||||
Accounts receivable are recorded net of allowances for doubtful accounts and reserves for book returns. In the normal course of business, we extend credit to customers that satisfy predefined criteria. We estimate the collectability of our receivables. Allowances for doubtful accounts are established through the evaluation of accounts receivable aging and prior collection experience to estimate the ultimate collectability of these receivables. Reserves for book returns are based on historical return rates and sales patterns. | |||||
Inventories | Inventories | ||||
Inventories are stated at the lower of weighted average cost or net realizable value. The level of obsolete and excess inventory is estimated on a program or title level-basis by comparing the number of units in stock with the expected future demand. The expected future demand of a program or title is determined by the copyright year, the previous years’ sales history, the subsequent year’s sales forecast, and known forward-looking trends including our development cycle to replace the title or program and competing titles or programs. | |||||
Property, Plant, and Equipment | Property, Plant, and Equipment | ||||
Property, plant, and equipment are stated at cost, or in the case of assets acquired in business combinations, at fair value as of the acquisition date, less accumulated depreciation. Equipment under capital lease is stated at fair value at inception of the lease, less accumulated depreciation. Maintenance and repair costs are charged to expense as incurred, and renewals and improvements that extend the useful life of the assets are capitalized. Depreciation on property, plant, and equipment is calculated using the straight-line method over the estimated useful lives of the assets or, in the case of assets acquired in business combinations, over their remaining lives. Equipment held under capital leases and leasehold improvements are amortized using the straight-line method over the shorter of the lease term or estimated useful life of the asset. Estimated useful lives of property, plant, and equipment are as follows: | |||||
Estimated | |||||
Useful Life | |||||
Building and building equipment | 10 to 35 years | ||||
Machinery and equipment | 2 to 15 years | ||||
Capitalized software | 3 to 5 years | ||||
Leasehold improvements | Lesser of useful life or lease term | ||||
Capitalized Internal-Use and External-Use Software | Capitalized Internal-Use and External-Use Software | ||||
Capitalized internal-use and external-use software is included in property, plant and equipment on the consolidated balance sheets. | |||||
We capitalize certain costs related to obtaining or developing computer software for internal use including external customer-facing websites. Costs incurred during the application development stage, including external direct costs of materials and services, and payroll and payroll related costs for employees who are directly associated with the internal-use software project, are capitalized and amortized on a straight-line basis over the expected useful life of the related software. The application development stage includes design of chosen path, software configuration and integration, coding, hardware installation and testing. Costs incurred during the preliminary stage, as well as maintenance, training and upgrades that do not result in additional functionality are expensed as incurred. | |||||
Certain computer software development costs for software that is to be sold or marketed are capitalized in the consolidated balance sheets. Capitalization of computer software development costs begins upon the establishment of technological feasibility. We define the establishment of technological feasibility as a working model. Amortization of capitalized computer software development costs is provided on a product-by-product basis using the straight-line method, beginning upon commercial release of the product, and continuing over the remaining estimated economic life of the product. The carrying amounts of computer software development costs are periodically compared to net realizable value and impairment charges are recorded, as appropriate, when amounts expected to be realized are lower. | |||||
We review internal and external software development costs for impairment. There was no such impairment for the year ended December 31, 2014. For the years ended December 31, 2013 and 2012, software development costs of $7.4 million and $2.6 million, respectively, were impaired. All impairments were included as a charge to the statement of operations in the impairment charge for investment in preferred stock, intangible assets, pre-publication costs and fixed assets caption. | |||||
Pre-publication costs | Pre-publication costs | ||||
We capitalize the art, prepress, manuscript and other costs incurred in the creation of the master copy of a book or other media (the “pre-publication costs”). Pre-publication costs are primarily amortized from the year of sale over five years using the sum-of-the-years-digits method, which is an accelerated method for calculating an asset’s amortization. Under this method, the amortization expense recorded for a pre-publication cost asset is approximately 33% (year 1), 27% (year 2), 20% (year 3), 13% (year 4) and 7% (year 5). This policy is used throughout the Company, except for the Trade Publishing young readers and general interest books, which generally expenses such costs as incurred, and the assessment products, which uses the straight-line amortization method. The amortization methods and periods chosen best reflect the pattern of expected sales generated from individual titles or programs. We periodically evaluate the remaining lives and recoverability of capitalized pre-publication costs, which are often dependent upon program acceptance by state adoption authorities. | |||||
Amortization expense related to pre-publication costs for the years ended December 31, 2014, 2013 and 2012 were $129.7 million, $121.7 million and $137.7 million, respectively. | |||||
There was no impairment for the year ended December 31, 2014. For the years ended December 31, 2013 and 2012, pre-publication costs of $1.1 million, and $0.4 million respectively, were impaired. The impairment was included as a charge to the statement of operations in the impairment charge for investment in preferred stock, intangible assets, pre-publication costs and fixed assets caption. | |||||
Goodwill and indefinite-lived intangible assets | Goodwill and indefinite-lived intangible assets | ||||
Goodwill is the excess of the purchase price paid over the fair value of the net assets of the business acquired. Other intangible assets principally consist of branded trademarks and trade names, acquired publishing rights and customer relationships. Goodwill and indefinite-lived intangible assets (certain trade names) are not amortized but are reviewed at least annually for impairment or earlier, if an indication of impairment exists. Recoverability of goodwill and indefinite lived intangibles is evaluated using a two-step process. In the first step, the fair value of a reporting unit is compared to its carrying value. If the fair value of a reporting unit exceeds the carrying value of the net assets assigned to a reporting unit, goodwill is considered not impaired and no further testing is required. If the carrying value of the net assets assigned to a reporting unit exceeds the fair value of a reporting unit, the second step of the impairment test is performed in order to determine the implied fair value of a reporting unit’s goodwill. Determining the implied fair value of goodwill requires valuation of a reporting unit’s tangible and intangible assets and liabilities in a manner similar to the allocation of purchase price in a business combination. If the carrying value of a reporting unit’s goodwill exceeds its implied fair value, goodwill is deemed impaired and is written down to the extent of the difference. We estimate total fair value of each reporting unit using market approaches and also a discounted cash flow analysis, and make assumptions regarding future revenue, gross margins, working capital levels, investments in new products, capital spending, tax, cash flows and the terminal value of the reporting unit. With regard to other intangibles with indefinite lives, we determine the fair value by asset, which is then compared to its carrying value to determine if the assets are impaired. | |||||
Goodwill is allocated entirely to our Education reporting unit. Determining the fair value of a reporting unit is judgmental in nature, and involves the use of significant estimates and assumptions. These estimates and assumptions may include revenue growth rates and operating margins used to calculate projected future cash flows, risk-adjusted discount rates, future economic and market conditions, the determination of appropriate market comparables as well as the fair value of individual assets and liabilities. Consistent with prior years, we used a combination of a market approach and income approach to establish the fair value of the reporting unit as of October 1, 2014. | |||||
We completed our annual goodwill and indefinite-lived intangible asset impairment tests as of October 1, 2014, 2013, and 2012 and recorded a noncash impairment charge of $0.4 million, $0.5 million and $5.0 million for the years ended December 31, 2014, 2013 and 2012, respectively. The impairments principally related to two specific tradenames within the Trade Publishing segment in both 2014 and 2013 and one specific tradename within the Education segment in 2012. The impairment charges resulted primarily from a decline in revenue from previously projected amounts. | |||||
Publishing Rights | Publishing Rights | ||||
A publishing right is an acquired right that allows us to publish and republish existing and future works as well as create new works based on previously published materials. We determine the fair market value of the publishing rights arising from business combinations by discounting the after-tax cash flows projected to be derived from the publishing rights and titles to their net present value using a rate of return that accounts for the time value of money and the appropriate degree of risk. The useful life of the publishing rights is based on the lives of the various copyrights involved. We calculate amortization using the percentage of the projected operating income before taxes derived from the titles in the current year as a percentage of the total estimated operating income before taxes over the remaining useful life. Acquired publication rights, as well as customer-related intangibles with definitive lives, are primarily amortized on an accelerated basis over periods ranging from three to 20 years. | |||||
Impairment of other long-lived assets | Impairment of other long-lived assets | ||||
We review our other long-lived assets for impairment whenever events or changes in circumstances indicate that the carrying amount of an asset may not be fully recoverable. If the future undiscounted cash flows are less than their book value, impairment exists. The impairment is measured as the difference between the book value and the fair value of the underlying asset. Fair value is normally determined using a discounted cash flow model. | |||||
Severance | Severance | ||||
We accrue postemployment benefits if the obligation is attributable to services already rendered, rights to those benefits accumulate, payment of benefits is probable, and amount of benefit is reasonably estimated. Postemployment benefits include severance benefits. | |||||
Subsequent to recording such accrued severance liabilities, changes in market or other conditions may result in changes to assumptions upon which the original liabilities were recorded that could result in an adjustment to the liabilities. | |||||
Royalty advances | Royalty advances | ||||
Royalty advances to authors are capitalized and represent amounts paid in advance of the sale of an author’s product and are recovered as earned. As advances are recorded, a partial reserve may be recorded immediately based primarily upon historical sales experience. Advances are evaluated periodically to determine if they are expected to be recovered. Any portion of a royalty advance that is not expected to be recovered is fully reserved. Cash payments for royalty advances are included within cash flows from operating activities, under the caption “Royalties, net,” in our consolidated statements of cash flows. | |||||
Income taxes | Income taxes | ||||
We record income taxes using the asset and liability method. Deferred income tax assets and liabilities are recognized for future tax consequences attributable to differences between the financial statement carrying amounts of existing assets and liabilities and their respective income tax basis, and operating loss and tax credit carryforwards. Our consolidated financial statements contain certain deferred tax assets which have arisen primarily as a result of interest expense limitations, as well as other temporary differences between financial and tax accounting. We establish a valuation allowance if the likelihood of realization of the deferred tax assets is reduced based on an evaluation of objective verifiable evidence. Significant management judgment is required in determining our provision for income taxes, our deferred tax assets and liabilities and any valuation allowance recorded against those deferred tax assets. We evaluate the weight of all available evidence to determine whether it is more likely than not that some portion or all of the deferred income tax assets will not be realized. | |||||
We also evaluate any uncertain tax positions and only recognize the tax benefit from an uncertain tax position if it is more likely than not that the tax position will be sustained on examination by the taxing authorities, based on the technical merits of the position. The tax benefits recognized in the financial statements from such positions are then measured based on the largest benefit that has a greater than 50 percent likelihood of being realized upon settlement. We record a liability for unrecognized tax benefits resulting from uncertain tax positions taken or expected to be taken in a tax return. Any change in judgment related to the expected ultimate resolution of uncertain tax positions is recognized in earnings in the period in which such change occurs. Interest and penalties, if any, related to unrecognized tax benefits are recorded in income tax expense. | |||||
Share-Based Compensation | Stock-Based Compensation | ||||
Certain employees and or directors have been granted stock options and restricted stock awards in the Company’s common stock. Stock based compensation expense reflects the fair value of stock-based awards measured at the grant date and recognized over the relevant service period. We estimate the fair value of each stock-based award on the measurement date using either the current market price or the Black-Scholes option valuation model. The Black-Scholes option valuation model incorporates assumptions as to stock volatility, the expected life of the options, risk-free interest rate and dividend yield for time-vested stock options and restricted stock. We recognize compensation cost on a straight-line basis over the awards’ vesting periods. | |||||
Comprehensive Loss | Comprehensive Loss | ||||
Comprehensive loss is defined as changes in the equity of an enterprise except those resulting from stockholder transactions. The amounts shown on the consolidated statements of stockholders’ equity and comprehensive loss relate to the cumulative effect of changes in pension and postretirement liabilities, foreign currency translation gain and loss adjustments, and unrealized gains and losses on short-term investments. | |||||
Foreign Currency Translation | Foreign Currency Translation | ||||
The functional currency for each of our subsidiaries is the currency of the primary economic environment in which the subsidiary operates, generally defined as the currency in which the entity generates and expends cash. Foreign currency denominated assets and liabilities are translated into United States dollars at current rates as of the balance sheet date and the revenue, costs and expenses are translated at the average rates established during each reporting period. Cumulative translation gains or losses are recorded in equity as an element of accumulated other comprehensive income. | |||||
Financial instruments | Financial instruments | ||||
Derivative financial instruments are employed to manage risks associated with interest rate exposures and are not used for trading or speculative purposes. We recognize all derivative instruments, such as foreign exchange forward and option contracts, in our consolidated balance sheets at fair value. Changes in the fair value of derivatives are recognized periodically either in earnings or in stockholders’ equity as a component of accumulated other comprehensive loss, depending on whether the derivative financial instrument qualifies for hedge accounting and, if so, whether it qualifies as a fair value hedge or a cash flow hedge. Gains and losses on derivatives designated as hedges, to the extent they are effective, are recorded in other comprehensive income, and subsequently reclassified to earnings to offset the impact of the hedged items when they occur. Changes in the fair value of derivatives not qualifying as hedges are reported in earnings. Our foreign exchange forward and option contracts did not qualify for hedge accounting because we did not contemporaneously document our hedging strategy upon entering into the hedging arrangements. There were no derivative instruments that qualified for hedge accounting during 2014, 2013 and 2012. | |||||
Treasury Stock | Treasury Stock | ||||
We account for treasury stock under the cost method. When shares are reissued or retired from treasury stock they are accounted for at an average price. Upon retirement the excess over par value is charged against capital in excess of par value. | |||||
Net Loss per Share | Net Loss per Share | ||||
Basic net loss per share attributable to common stockholders is computed by dividing net loss attributable to common stockholders by the weighted-average common shares outstanding during the period. Except where the result would be anti-dilutive, net loss per share is computed using the treasury stock method for the exercise of stock options. For periods in which the Company has reported net losses, diluted net loss per share attributable to common stockholders is the same as basic net loss per share attributable to common stockholders, since dilutive common shares are not assumed to have been issued if their effect is anti-dilutive. Diluted net loss per share attributable to common stockholders is the same as basic net loss per share attributable to common stockholders for the years ended December 31, 2014, 2013 and 2012. | |||||
Recent Accounting Pronouncements | Recent Accounting Pronouncements | ||||
Recent accounting pronouncements, not included below, are not expected to have a material impact on our consolidated financial position and results of operations. | |||||
In August 2014, the Financial Accounting Standards Board (“FASB”) issued new guidance related to the disclosures around going concern. The new standard provides guidance around management’s responsibility to evaluate whether there is substantial doubt about an entity’s ability to continue as a going concern and to provide related footnote disclosures. The new standard is effective for fiscal years, and interim periods within those fiscal years, beginning after December 15, 2016. Early adoption is permitted. The adoption of this standard is not expected to have an impact on our consolidated financial statements or disclosures. | |||||
In June 2014, the FASB issued new guidance related to stock compensation. The new standard requires that a performance target that affects vesting, and that could be achieved after the requisite service period, be treated as a performance condition. As such, the performance target should not be reflected in estimating the grant date fair value of the award. This update further clarifies that compensation cost should be recognized in the period in which it becomes probable that the performance target will be achieved and should represent the compensation cost attributable to the periods for which the requisite service has already been rendered. The new standard is effective for fiscal years, and interim periods within those fiscal years, beginning after December 15, 2015 and can be applied either prospectively or retrospectively to all awards outstanding as of the beginning of the earliest annual period presented as an adjustment to opening retained earnings. Early adoption is permitted. We do not believe the adoption of this new accounting standard will impact our consolidated financial statements. | |||||
In May 2014, the FASB issued new accounting guidance related to revenue recognition. This new standard will replace all current U.S. GAAP guidance on this topic and eliminate all industry-specific guidance. The new revenue recognition standard provides a unified model to determine when and how revenue is recognized. The core principle is that a company should recognize revenue to depict the transfer of promised goods or services to customers in an amount that reflects the consideration for which the entity expects to be entitled in exchange for those goods or services. This guidance will be effective beginning January 1, 2017 and can be applied either retrospectively to each period presented or as a cumulative-effect adjustment as of the date of adoption. We are in the process of evaluating the impact of adopting this new accounting standard on our consolidated financial statements. | |||||
In April 2014, the FASB issued new guidance related to reporting discontinued operations. This new standard raises the threshold for a disposal to qualify as a discontinued operation and requires new disclosures of both discontinued operations and certain other disposals that do not meet the definition of a discontinued operation. The new standard is effective for fiscal years beginning on or after December 15, 2014. Early adoption is permitted but only for disposals that have not been reported in financial statements previously issued. We do not believe the adoption of this new accounting standard will impact our consolidated financial statements. |
Chapter_11_Reorganization_Disc1
Chapter 11 Reorganization Disclosures (Tables) | 12 Months Ended | ||||||||||||
Dec. 31, 2014 | |||||||||||||
Reorganizations [Abstract] | |||||||||||||
Summary of Transactions Affecting Debt | A summary of the transactions affecting the Company’s debt balances is as follows: | ||||||||||||
Debt balance prior to emergence from bankruptcy (including accrued interest) | $ | (3,142,234 | ) | ||||||||||
Exchange of debt for new common shares | 1,750,000 | ||||||||||||
Elimination of debt discount and deferred financing fees | 98,352 | ||||||||||||
Adequate protection payments | 69,701 | ||||||||||||
Conversion fees | 30,299 | ||||||||||||
Professional fees | 21,726 | ||||||||||||
(Gain) loss on extinguishment | $ | (1,172,156 | ) | ||||||||||
Summary of Gain from Reorganization Items | The gain from reorganization items for the year ended December 31, 2012 were as follows: | ||||||||||||
Total | Adjusted to | Reorganization | |||||||||||
Capital in excess | items, net | ||||||||||||
of par value | |||||||||||||
Debt to equity conversion | $ | (1,392,234 | ) | $ | (1,199,549 | ) | $ | (192,685 | ) | ||||
Elimination of debt discount and deferred financing fees | 98,352 | 84,740 | 13,612 | ||||||||||
Adequate protection payments | 69,701 | 60,054 | 9,647 | ||||||||||
Conversion fees | 30,299 | 26,106 | 4,193 | ||||||||||
Professional fees | 21,726 | 18,381 | 3,345 | ||||||||||
(Gain) loss on extinguishment | (1,172,156 | ) | (1,010,268 | ) | (161,888 | ) | |||||||
Stock compensation | 2,027 | — | 2,027 | ||||||||||
Issuance of warrants | 10,747 | — | 10,747 | ||||||||||
Reorganization items, net | $ | (1,159,382 | ) | $ | (1,010,268 | ) | $ | (149,114 | ) | ||||
Summary of Liabilities Subject to Compromise Reflected in Consolidated Balance Sheet | A summary of liabilities subject to compromise reflected in the consolidated balance sheet as of May 21, 2012 is as follows: | ||||||||||||
May 21, | |||||||||||||
2012 | |||||||||||||
$2,668,690 Term Loan due June 12, 2014 | $ | 2,570,815 | |||||||||||
$235,751 Revolving Loan due December 12, 2013 | 235,751 | ||||||||||||
$300,000 10.5% senior secured notes due June 1, 2019 | 300,000 | ||||||||||||
Accrued interest | 35,668 | ||||||||||||
Total | $ | 3,142,234 | |||||||||||
Significant_Accounting_Policie2
Significant Accounting Policies (Tables) | 12 Months Ended | ||||
Dec. 31, 2014 | |||||
Accounting Policies [Abstract] | |||||
Summary of Estimated Useful Lives of Property, Plant, and Equipment | Estimated useful lives of property, plant, and equipment are as follows: | ||||
Estimated | |||||
Useful Life | |||||
Building and building equipment | 10 to 35 years | ||||
Machinery and equipment | 2 to 15 years | ||||
Capitalized software | 3 to 5 years | ||||
Leasehold improvements | Lesser of useful life or lease term |
Balance_Sheet_Information_Tabl
Balance Sheet Information (Tables) | 12 Months Ended | ||||||||||||||||
Dec. 31, 2014 | |||||||||||||||||
Organization, Consolidation and Presentation of Financial Statements [Abstract] | |||||||||||||||||
Estimated Fair Value of Short-Term Investments Classified, Available for Sale | The estimated fair value of our short-term investments classified as available for sale, is as follows: | ||||||||||||||||
December 31, 2014 | |||||||||||||||||
Amortized | Unrealized | Unrealized | Estimated | ||||||||||||||
Cost | Gains | Losses | Fair Value | ||||||||||||||
Short-term investments: | |||||||||||||||||
U.S. Government and agency securities | $ | 286,675 | $ | 10 | $ | (99 | ) | $ | 286,764 | ||||||||
$ | 286,675 | $ | 10 | $ | (99 | ) | $ | 286,764 | |||||||||
December 31, 2013 | |||||||||||||||||
Amortized | Unrealized | Unrealized | Estimated | ||||||||||||||
Cost | Gains | Losses | Fair Value | ||||||||||||||
Short-term investments: | |||||||||||||||||
U.S. Government and agency securities | $ | 111,721 | $ | 4 | $ | (4 | ) | $ | 111,721 | ||||||||
$ | 111,721 | $ | 4 | $ | (4 | ) | $ | 111,721 | |||||||||
Accounts Receivable | Accounts receivable at December 31, 2014 and 2013 consisted of the following: | ||||||||||||||||
2014 | 2013 | ||||||||||||||||
Accounts receivable | $ | 283,453 | $ | 358,734 | |||||||||||||
Allowance for bad debt | (5,625 | ) | (5,084 | ) | |||||||||||||
Reserve for book returns | (22,159 | ) | (35,549 | ) | |||||||||||||
$ | 255,669 | $ | 318,101 | ||||||||||||||
Inventories | Inventories at December 31, 2014 and 2013 consisted of the following: | ||||||||||||||||
2014 | 2013 | ||||||||||||||||
Finished goods | $ | 178,812 | $ | 177,017 | |||||||||||||
Raw materials | 5,149 | 5,177 | |||||||||||||||
Inventory | $ | 183,961 | $ | 182,194 | |||||||||||||
Balances of Major Classes of Assets and Accumulated Depreciation and Amortization | Balances of major classes of assets and accumulated depreciation and amortization at December 31, 2014 and 2013 were as follows: | ||||||||||||||||
2014 | 2013 | ||||||||||||||||
Land and land improvements | $ | 4,717 | $ | 4,717 | |||||||||||||
Building and building equipment | 9,723 | 9,505 | |||||||||||||||
Machinery and equipment | 18,766 | 15,223 | |||||||||||||||
Capitalized software | 350,179 | 294,361 | |||||||||||||||
Leasehold improvements | 28,719 | 27,961 | |||||||||||||||
412,104 | 351,767 | ||||||||||||||||
Less: Accumulated depreciation and amortization | (273,742 | ) | (210,919 | ) | |||||||||||||
Property, plant, and equipment, net | $ | 138,362 | $ | 140,848 | |||||||||||||
Accumulated Other Comprehensive Loss | Accumulated other comprehensive loss consisted of the following at December 31, 2014, 2013 and 2012: | ||||||||||||||||
2014 | 2013 | 2012 | |||||||||||||||
Net change in pension and benefit plan liability | $ | (24,198 | ) | $ | (10,818 | ) | $ | (18,664 | ) | ||||||||
Foreign currency translation adjustments | (2,502 | ) | (2,473 | ) | (2,877 | ) | |||||||||||
Unrealized gain on short-term investments | (89 | ) | — | 13 | |||||||||||||
$ | (26,789 | ) | $ | (13,291 | ) | $ | (21,528 | ) | |||||||||
Goodwill_and_Other_Intangible_1
Goodwill and Other Intangible Assets (Tables) | 12 Months Ended | ||||||||||||||||
Dec. 31, 2014 | |||||||||||||||||
Goodwill and Intangible Assets Disclosure [Abstract] | |||||||||||||||||
Schedule of Goodwill and Other Intangible Assets | Goodwill and other intangible assets consisted of the following: | ||||||||||||||||
December 31, 2014 | December 31, 2013 | ||||||||||||||||
Cost | Accumulated | Cost | Accumulated | ||||||||||||||
Amortization | Amortization | ||||||||||||||||
Goodwill | $ | 532,921 | $ | — | $ | 531,786 | $ | — | |||||||||
Trademarks and tradenames | 439,719 | — | 440,005 | — | |||||||||||||
Publishing rights | 1,180,000 | (889,560 | ) | 1,180,000 | (783,937 | ) | |||||||||||
Customer related and other | 283,225 | (211,415 | ) | 283,172 | (199,246 | ) | |||||||||||
$ | 2,435,865 | $ | (1,100,975 | ) | $ | 2,434,963 | $ | (983,183 | ) | ||||||||
Changes in the Carrying Amount of Goodwill | The changes in the carrying amount of goodwill for the years ended December 31, 2014 and 2013 are as follows: | ||||||||||||||||
Balance at December 31, 2012 | $ | 520,088 | |||||||||||||||
Goodwill | 1,962,588 | ||||||||||||||||
Accumulated impairment losses | (1,442,500 | ) | |||||||||||||||
Acquisitions | 11,698 | ||||||||||||||||
Balance at December 31, 2013 | $ | 531,786 | |||||||||||||||
Goodwill | 1,974,286 | ||||||||||||||||
Accumulated impairment losses | (1,442,500 | ) | |||||||||||||||
Acquisitions | 1,135 | ||||||||||||||||
Balance at December 31, 2014 | $ | 532,921 | |||||||||||||||
Estimated Aggregate Amortization Expense Expected for Intangibles | Estimated aggregate amortization expense expected for each of the next five years related to intangibles subject to amortization is as follows: | ||||||||||||||||
Publishing | Other | ||||||||||||||||
Rights | Intangible | ||||||||||||||||
Assets | |||||||||||||||||
2015 | 81,007 | 12,346 | |||||||||||||||
2016 | 61,350 | 11,201 | |||||||||||||||
2017 | 46,238 | 10,080 | |||||||||||||||
2018 | 34,713 | 9,053 | |||||||||||||||
2019 | 26,557 | 6,488 | |||||||||||||||
Thereafter | 40,575 | 22,642 |
Debt_Tables
Debt (Tables) | 12 Months Ended | ||||||||
Dec. 31, 2014 | |||||||||
Debt Disclosure [Abstract] | |||||||||
Long-Term Debt | Long-term debt at December 31, 2014 and 2013 consisted of the following: | ||||||||
2014 | 2013 | ||||||||
$250,000 Term Loan due May 21, 2018 | $ | 243,125 | $ | 245,625 | |||||
interest payable monthly | |||||||||
Less: Current portion of long-term debt | 67,500 | 2,500 | |||||||
Total long-term debt | $ | 175,625 | $ | 243,125 | |||||
Long-Term Debt Repayments Due | Long-term debt repayments due in each of the next five years and thereafter is as follows: | ||||||||
Year | |||||||||
2015 | 67,500 | ||||||||
2016 | 2,500 | ||||||||
2017 | 2,500 | ||||||||
2018 | 170,625 | ||||||||
2019 | — | ||||||||
Thereafter | — | ||||||||
$ | 243,125 | ||||||||
Severance_and_Other_Charges_Ta
Severance and Other Charges (Tables) | 12 Months Ended | ||||||||||||||||
Dec. 31, 2014 | |||||||||||||||||
Restructuring and Related Activities [Abstract] | |||||||||||||||||
Components of Severance/Restructuring and Other Charges | A summary of the significant components of the severance/restructuring and other charges is as follows: | ||||||||||||||||
2014 | |||||||||||||||||
Severance/ | Severance/ | Cash payments | Severance/ | ||||||||||||||
restructuring | restructuring | restructuring | |||||||||||||||
accrual at | expense | accrual at | |||||||||||||||
December 31, 2013 | December 31, 2014 | ||||||||||||||||
Severance costs | $ | 4,115 | $ | 5,022 | $ | (7,866 | ) | $ | 1,271 | ||||||||
Other accruals | 11,416 | 2,278 | (4,644 | ) | 9,050 | ||||||||||||
$ | 15,531 | $ | 7,300 | $ | (12,510 | ) | $ | 10,321 | |||||||||
2013 | |||||||||||||||||
Severance/ | Severance/ | Cash payments | Severance/ | ||||||||||||||
restructuring | restructuring | restructuring | |||||||||||||||
accrual at | expense | accrual at | |||||||||||||||
December 31, 2012 | December 31, 2013 | ||||||||||||||||
Severance costs | $ | 2,142 | $ | 7,801 | $ | (5,828 | ) | $ | 4,115 | ||||||||
Other accruals | 16,148 | 2,239 | (6,971 | ) | 11,416 | ||||||||||||
$ | 18,290 | $ | 10,040 | $ | (12,799 | ) | $ | 15,531 | |||||||||
2012 | |||||||||||||||||
Severance/ | Severance/ | Cash payments | Severance/ | ||||||||||||||
restructuring | restructuring | restructuring | |||||||||||||||
accrual at | expense | accrual at | |||||||||||||||
December 31, 2011 | December 31, 2012 | ||||||||||||||||
Severance costs | $ | 16,071 | $ | 5,284 | $ | (19,213 | ) | $ | 2,142 | ||||||||
Other accruals | 19,679 | 4,091 | (7,622 | ) | 16,148 | ||||||||||||
$ | 35,750 | $ | 9,375 | $ | (26,835 | ) | $ | 18,290 | |||||||||
Income_Taxes_Tables
Income Taxes (Tables) | 12 Months Ended | ||||||||||||
Dec. 31, 2014 | |||||||||||||
Income Tax Disclosure [Abstract] | |||||||||||||
Components of Loss Before Taxes by Jurisdiction | The components of loss before taxes by jurisdiction are as follows: | ||||||||||||
For the Year | For the Year | For the Year | |||||||||||
Ended | Ended | Ended | |||||||||||
December 31, 2014 | December 31, 2013 | December 31, 2012 | |||||||||||
U.S. | $ | (102,284 | ) | $ | (80,969 | ) | $ | (47,755 | ) | ||||
Foreign | (2,945 | ) | (27,870 | ) | (45,327 | ) | |||||||
Loss before taxes | $ | (105,249 | ) | $ | (108,839 | ) | $ | (93,082 | ) | ||||
Total Income Tax by Jurisdiction | Total income taxes by jurisdiction are as follows: | ||||||||||||
For the Year | For the Year | For the Year | |||||||||||
Ended | Ended | Ended | |||||||||||
December 31, 2014 | December 31, 2013 | December 31, 2012 | |||||||||||
Income tax expense (benefit) | |||||||||||||
U.S. | $ | 9,632 | $ | 1,496 | $ | (7,045 | ) | ||||||
Foreign | (3,390 | ) | 851 | 1,102 | |||||||||
$ | 6,242 | $ | 2,347 | $ | (5,943 | ) | |||||||
Components of Expense (Benefit) for Income Taxes Attributable to Loss from Continuing Operations | Significant components of the expense (benefit) for income taxes attributable to loss from continuing operations consist of the following: | ||||||||||||
For the Year | For the Year | For the Year | |||||||||||
Ended | Ended | Ended | |||||||||||
December 31, 2014 | December 31, 2013 | December 31, 2012 | |||||||||||
Current | |||||||||||||
Foreign | $ | 588 | $ | 760 | $ | 1,102 | |||||||
U.S.—Federal | — | — | — | ||||||||||
U.S.—State and other | 4,633 | 3,734 | 3,031 | ||||||||||
Total current | 5,221 | 4,494 | 4,133 | ||||||||||
Deferred | |||||||||||||
Foreign | (3,633 | ) | 91 | — | |||||||||
U.S.—Federal | 3,889 | (1,417 | ) | (9,201 | ) | ||||||||
U.S.—State and other | 765 | (821 | ) | (875 | ) | ||||||||
Total deferred | 1,021 | (2,147 | ) | (10,076 | ) | ||||||||
Income tax expense (benefit) | $ | 6,242 | $ | 2,347 | $ | (5,943 | ) | ||||||
Reconciliation of Income Tax Rate Computed at Statutory Tax Rate | The reconciliation of the income tax rate computed at the statutory tax rate to the reported income tax expense (benefit) attributable to continuing operations is as follows: | ||||||||||||
For the Year | For the Year | For the Year | |||||||||||
Ended | Ended | Ended | |||||||||||
December 31, 2014 | December 31, 2013 | December 31, 2012 | |||||||||||
Statutory rate | (35.0 | )% | (35.0 | )% | (35.0 | )% | |||||||
Permanent items | 1 | 2.5 | 3.7 | ||||||||||
UTP interest | 3.3 | — | — | ||||||||||
Transfer pricing adjustments | — | — | (0.1 | ) | |||||||||
Reorganization expense | — | — | 5.9 | ||||||||||
Bargain purchase gain | — | — | (11.6 | ) | |||||||||
Foreign rate differential | 0.1 | 6 | 10.3 | ||||||||||
State and local taxes | 1.2 | 0.3 | — | ||||||||||
Increase in valuation allowance | 35.3 | 28.4 | 20.4 | ||||||||||
Effective tax rate | 5.9 | % | 2.2 | % | (6.4 | )% | |||||||
Components of Net Deferred Tax Assets and Liabilities | The significant components of the net deferred tax assets and liabilities are shown in the following table: | ||||||||||||
2014 | 2013 | ||||||||||||
Tax asset related to | |||||||||||||
Net operating loss and other carryforwards | $ | 71,565 | $ | 40,021 | |||||||||
Returns reserve/inventory expense | 61,124 | 64,264 | |||||||||||
Pension and postretirement benefits | 8,122 | 10,488 | |||||||||||
Deferred interest (1) | 463,013 | 483,143 | |||||||||||
Deferred revenue | 75,577 | 109,240 | |||||||||||
Deferred compensation | 23,084 | 17,182 | |||||||||||
Other, net | 26,394 | 21,163 | |||||||||||
Valuation allowance | (550,660 | ) | (527,960 | ) | |||||||||
178,219 | 217,541 | ||||||||||||
Tax liability related to | |||||||||||||
Intangible assets | (211,805 | ) | (231,186 | ) | |||||||||
Depreciation and amortization expense | (54,201 | ) | (73,512 | ) | |||||||||
Other, net | (269 | ) | — | ||||||||||
(266,275 | ) | (304,698 | ) | ||||||||||
Net deferred tax liabilities | $ | (88,056 | ) | $ | (87,157 | ) | |||||||
-1 | The Deferred Interest tax asset represents disallowed interest deductions under IRC Section 163(j) (Limitation on Deduction for interest on Certain Indebtedness) for the current and prior years. The disallowed interest is able to be carried forward and utilized in future years pursuant to IRC Section 163(j)(1)(B). A full valuation allowance has been provided against deferred tax assets net of deferred tax liabilities, with the exception of deferred tax liabilities resulting from long lived intangibles. | ||||||||||||
Deferred Tax Assets and Liabilities Reflected on Consolidated Balance Sheets | Deferred tax assets and liabilities are reflected on our consolidated balance sheets as follows: | ||||||||||||
2014 | 2013 | ||||||||||||
Current deferred tax assets | $ | 20,459 | $ | 29,842 | |||||||||
Non-current deferred tax assets | 3,705 | — | |||||||||||
Noncurrent deferred tax liability | (112,220 | ) | (116,999 | ) | |||||||||
$ | (88,056 | ) | $ | (87,157 | ) | ||||||||
Reconciliation of Gross Amount of Unrecognized Tax Benefits | A reconciliation of the gross amount of unrecognized tax benefits, excluding accrued interest and penalties, is as follows: | ||||||||||||
Balance at December 31, 2011 | $ | 70,774 | |||||||||||
Reductions based on tax positions related to the prior year | (105 | ) | |||||||||||
Additions based on tax positions related to the current year | 3,965 | ||||||||||||
Balance at December 31, 2012 | $ | 74,634 | |||||||||||
Reductions based on tax positions related to the prior year | (1,984 | ) | |||||||||||
Additions based on tax positions related to the current year | 2,853 | ||||||||||||
Balance at December 31, 2013 | $ | 75,503 | |||||||||||
Reductions based on tax positions related to the prior year | — | ||||||||||||
Additions based on tax positions related to the current year | 3,131 | ||||||||||||
Balance at December 31, 2014 | $ | 78,634 |
Retirement_and_Postretirement_1
Retirement and Postretirement Benefit Plans (Tables) | 12 Months Ended | ||||||||||||
Dec. 31, 2014 | |||||||||||||
Summary of Accumulated Benefit Obligations Change in Projected Benefit Obligation and Funded Status of Plans | The following table summarizes the Accumulated Benefit Obligations (“ABO”), the change in Projected Benefit Obligation (“PBO”), and the funded status of our plans as of and for the financial statement period ended December 31, 2014 and 2013: | ||||||||||||
2014 | 2013 | ||||||||||||
ABO at end of period | $ | 184,510 | $ | 191,519 | |||||||||
Change in PBO | |||||||||||||
PBO at beginning of period | $ | 191,519 | $ | 204,420 | |||||||||
Foreign defined benefit plan termination | (14,934 | ) | — | ||||||||||
Service cost | — | — | |||||||||||
Interest cost on PBO | 7,671 | 7,405 | |||||||||||
Plan settlements | — | (1,446 | ) | ||||||||||
Actuarial (gain) loss | 13,338 | (9,671 | ) | ||||||||||
Benefits paid | (13,084 | ) | (9,424 | ) | |||||||||
Exchange rates | — | 235 | |||||||||||
PBO at end of period | $ | 184,510 | $ | 191,519 | |||||||||
Change in plan assets | |||||||||||||
Fair market value at beginning of period | $ | 167,114 | $ | 155,706 | |||||||||
Foreign defined benefit plan termination | (15,152 | ) | — | ||||||||||
Plan settlements | — | (1,446 | ) | ||||||||||
Actual return | 13,069 | 11,540 | |||||||||||
Company contribution | 14,038 | 10,615 | |||||||||||
Benefits paid | (13,084 | ) | (9,424 | ) | |||||||||
Exchange rates | — | 123 | |||||||||||
Fair market value at end of period | $ | 165,985 | $ | 167,114 | |||||||||
Funded status | $ | (18,525 | ) | $ | (24,405 | ) | |||||||
Amounts Recognized in Consolidated Balance Sheets | Amounts recognized in the consolidated balance sheets at December 31, 2014 and 2013 consist of: | ||||||||||||
2014 | 2013 | ||||||||||||
Noncurrent liabilities | $ | (18,525 | ) | $ | (24,405 | ) | |||||||
Additional Year-End Information for Pension Plans with ABO in Excess of Plan Assets | Additional year-end information for pension plans with ABO in excess of plan assets at December 31, 2014 and 2013 consist of: | ||||||||||||
2014 | 2013 | ||||||||||||
PBO | $ | 184,510 | $ | 176,585 | |||||||||
ABO | 184,510 | 176,585 | |||||||||||
Fair value of plan assets | 165,985 | 151,962 | |||||||||||
Amounts not yet Reflected in Net Periodic Benefit Cost and Recognized in Accumulated Other Comprehensive Income | Amounts not yet reflected in net periodic benefit cost and recognized in accumulated other comprehensive income at December 31, 2014 and 2013 consist of: | ||||||||||||
2014 | 2013 | ||||||||||||
Net gain (loss) | $ | (18,143 | ) | $ | (9,536 | ) | |||||||
Accumulated other comprehensive income (loss) | $ | (18,143 | ) | $ | (9,536 | ) | |||||||
Weighted Average Assumptions used to Determine Benefit Obligations | Weighted average assumptions used to determine the benefit obligations (both PBO and ABO) at December 31, 2014 and 2013 are: | ||||||||||||
2014 | 2013 | ||||||||||||
Discount rate | 3.8 | % | 4.6 | % | |||||||||
Increase in future compensation | N/A | N/A | |||||||||||
Summary of Percentage of Assets Invested in Each Class | The percentage of assets invested in each asset class at December 31, 2014 and 2013 is shown below. | ||||||||||||
2014 | Percentage | ||||||||||||
in Each | |||||||||||||
Asset Class | Asset Class | ||||||||||||
Equity | 29.7 | % | |||||||||||
Fixed income | 55.1 | ||||||||||||
Real estate investment trust | 5.1 | ||||||||||||
Other | 10.1 | ||||||||||||
100 | % | ||||||||||||
2013 | Percentage | ||||||||||||
in Each | |||||||||||||
Asset Class | Asset Class | ||||||||||||
Equity | 37.8 | % | |||||||||||
Fixed income | 43.7 | ||||||||||||
Real estate investment trust | 3.9 | ||||||||||||
Annuity policies | 8.9 | ||||||||||||
Other | 5.7 | ||||||||||||
100 | % | ||||||||||||
Summary of Fair Value of Pension Plan Assets by Asset Category | The fair value of our pension plan assets by asset category and by level at December 31 were as follows: | ||||||||||||
Year ended | Markets for | Observable | |||||||||||
December 31, | Identical Assets | Inputs | |||||||||||
2014 | (Level 1) | (Level 2) | |||||||||||
Cash and cash equivalents | $ | 1,436 | $ | 1,436 | $ | — | |||||||
Equity securities | |||||||||||||
U.S. equity | 28,630 | — | 28,630 | ||||||||||
Non U.S. equity | 14,844 | — | 14,844 | ||||||||||
Emerging markets equity | 5,763 | — | 5,763 | ||||||||||
Fixed Income | |||||||||||||
Government bonds | 22,430 | — | 22,430 | ||||||||||
Corporate bonds | 47,774 | — | 47,774 | ||||||||||
Mortgage-backed securities | 9,742 | — | 9,742 | ||||||||||
Asset-backed securities | 1,534 | — | 1,534 | ||||||||||
Commercial Mortgage-Backed Securities | 2,291 | — | 2,291 | ||||||||||
International Fixed Income | 6,610 | — | 6,610 | ||||||||||
Alternatives | |||||||||||||
Real Estate | 8,472 | — | 8,472 | ||||||||||
Hedge funds | 15,283 | — | 15,283 | ||||||||||
Other | 1,176 | — | 1,176 | ||||||||||
$ | 165,985 | $ | 1,436 | $ | 164,549 | ||||||||
For the | Quoted Prices | Significant | |||||||||||
Year ended | in Active | Other | |||||||||||
December 31, | Markets for | Observable | |||||||||||
2013 | Identical Assets | Inputs | |||||||||||
(Level 1) | (Level 2) | ||||||||||||
Cash and cash equivalents | $ | 1,619 | $ | 1,619 | $ | — | |||||||
Equity securities | |||||||||||||
U.S. equity | 41,544 | — | 41,544 | ||||||||||
Non U.S. equity | 20,156 | — | 20,156 | ||||||||||
Emerging markets equity | 1,550 | — | 1,550 | ||||||||||
Fixed Income | |||||||||||||
Government bonds | 20,230 | — | 20,230 | ||||||||||
Corporate bonds | 38,050 | — | 38,050 | ||||||||||
Mortgage-backed securities | 10,750 | — | 10,750 | ||||||||||
Asset-backed securities | 700 | — | 700 | ||||||||||
Commercial Mortgage-Backed Securities | 513 | — | 513 | ||||||||||
International Fixed Income | 2,767 | — | 2,767 | ||||||||||
Alternatives | |||||||||||||
Real Estate | 6,485 | — | 6,485 | ||||||||||
Hedge funds | 7,017 | — | 7,017 | ||||||||||
Annuity policies | 14,932 | — | 14,932 | ||||||||||
Other | 801 | — | 801 | ||||||||||
$ | 167,114 | $ | 1,619 | $ | 165,495 | ||||||||
Estimated Future Benefit Payments | The following benefit payments, which reflect expected future service, are expected to be paid: | ||||||||||||
Fiscal Year Ended | Postretirement | ||||||||||||
Plan | |||||||||||||
2015 | 2,037 | ||||||||||||
2016 | 1,951 | ||||||||||||
2017 | 1,925 | ||||||||||||
2018 | 1,858 | ||||||||||||
2019 | 1,844 | ||||||||||||
2020-2024 | 8,918 | ||||||||||||
Summary of Accumulated Postretirement Benefit Obligation Changes in Plan Assets and Funded Status of Plan | The following table summarizes the Accumulated Postretirement Benefit Obligation (“APBO”), the changes in plan assets, and the funded status of our plan as of and for the financial statement periods ended December 31, 2014 and 2013. | ||||||||||||
2014 | 2013 | ||||||||||||
Change in APBO | |||||||||||||
APBO at beginning of period | $ | 26,001 | $ | 29,573 | |||||||||
Service cost (benefits earned during the period) | 179 | 222 | |||||||||||
Interest cost on APBO | 1,361 | 1,275 | |||||||||||
Employee contributions | 591 | 641 | |||||||||||
Actuarial (gain) loss | 3,611 | (2,513 | ) | ||||||||||
Benefits paid | (3,206 | ) | (3,197 | ) | |||||||||
APBO at end of period | $ | 28,537 | $ | 26,001 | |||||||||
Change in plan assets | |||||||||||||
Fair market value at beginning of period | $ | — | $ | — | |||||||||
Company contributions | 2,615 | 2,556 | |||||||||||
Employee contributions | 591 | 641 | |||||||||||
Benefits paid | (3,206 | ) | (3,197 | ) | |||||||||
Fair market value at end of period | $ | — | $ | — | |||||||||
Funded status | $ | (28,537 | ) | $ | (26,001 | ) | |||||||
One Percentage Point Changes in Assumed Health Care Cost | A one-percentage-point change in assumed health care cost trend rates would have the following effects on the expense recorded in 2014 and 2013 for the postretirement medical plan: | ||||||||||||
2014 | 2013 | ||||||||||||
One-percentage-point increase | |||||||||||||
Effect on total of service and interest cost components | $ | 12 | $ | 12 | |||||||||
Effect on postretirement benefit obligation | 246 | 298 | |||||||||||
One-percentage-point decrease | |||||||||||||
Effect on total of service and interest cost components | (11 | ) | (11 | ) | |||||||||
Effect on postretirement benefit obligation | (223 | ) | (190 | ) | |||||||||
Summary of Change in Other Comprehensive Income | The following table presents the change in other comprehensive income for the year ended December 31, 2014 related to our pension and postretirement obligations. | ||||||||||||
Pension | Postretirement | Total | |||||||||||
Plans | Benefit | ||||||||||||
Plan | |||||||||||||
Sources of change in accumulated other comprehensive loss | |||||||||||||
Net loss arising during the period | $ | (10,370 | ) | $ | (3,611 | ) | $ | (13,981 | ) | ||||
Amortization of prior service credit | — | (1,381 | ) | (1,381 | ) | ||||||||
Total accumulated other comprehensive loss recognized during the period | $ | (10,370 | ) | $ | (4,992 | ) | $ | (15,362 | ) | ||||
Summary of Estimated Amounts Amortized from Accumulated Other Comprehensive Income (Loss) Over Next Fiscal Year | Estimated amounts that will be amortized from accumulated other comprehensive income (loss) over the next fiscal year. | ||||||||||||
Total | Total | ||||||||||||
Pension | Postretirement | ||||||||||||
Plans | Plan | ||||||||||||
Prior service credit (cost) | $ | — | $ | 1,381 | |||||||||
Net gain (loss) | (331 | ) | (220 | ) | |||||||||
$ | (331 | ) | $ | 1,161 | |||||||||
Pension Plan, Defined Benefit [Member] | |||||||||||||
Net Periodic Benefit Cost Components | Net periodic pension cost includes the following components: | ||||||||||||
For the Year | For the Year | For the Year | |||||||||||
Ended | Ended | Ended | |||||||||||
December 31, | December 31, | December 31, | |||||||||||
2014 | 2013 | 2012 | |||||||||||
Interest cost on projected benefit obligation | $ | 7,671 | $ | 7,405 | $ | 8,288 | |||||||
Expected return on plan assets | (10,122 | ) | (10,124 | ) | (9,047 | ) | |||||||
Amortization of net (gain) loss | — | 337 | 13 | ||||||||||
Net pension expense | (2,451 | ) | (2,382 | ) | (746 | ) | |||||||
Loss (gain) due to settlement | — | 167 | 84 | ||||||||||
Net cost (gain) recognized for the period | $ | (2,451 | ) | $ | (2,215 | ) | $ | (662 | ) | ||||
Significant Actuarial Assumptions used to Determine Net Periodic Pension Cost | Significant actuarial assumptions used to determine net periodic pension cost at December 31, 2014, 2013 and 2012 are: | ||||||||||||
2014 | 2013 | 2012 | |||||||||||
Discount rate | 4.6 | % | 3.8 | % | 4.4 | % | |||||||
Increase in future compensation | N/A | N/A | N/A | ||||||||||
Expected long-term rate of return on assets | 7 | % | 6.7 | % | 6.7 | % | |||||||
Estimated Future Benefit Payments | The following benefit payments are expected to be paid. | ||||||||||||
Fiscal Year Ended | Pension | ||||||||||||
2015 | 17,225 | ||||||||||||
2016 | 17,258 | ||||||||||||
2017 | 18,061 | ||||||||||||
2018 | 17,969 | ||||||||||||
2019 | 9,901 | ||||||||||||
2020—2024 | 48,154 | ||||||||||||
Other Postretirement Benefit Plan, Defined Benefit [Member] | |||||||||||||
Amounts Recognized in Consolidated Balance Sheets | Amounts for postretirement benefits accrued in the consolidated balance sheets at December 31, 2014 and 2013 consist of: | ||||||||||||
2014 | 2013 | ||||||||||||
Current liabilities | $ | (2,037 | ) | $ | (2,141 | ) | |||||||
Noncurrent liabilities | (26,500 | ) | (23,860 | ) | |||||||||
Net amount recognized | $ | (28,537 | ) | $ | (26,001 | ) | |||||||
Amounts not yet Reflected in Net Periodic Benefit Cost and Recognized in Accumulated Other Comprehensive Income | Amounts not yet reflected in net periodic benefit cost and recognized in accumulated other comprehensive income at December 31, 2014 and 2013 consist of: | ||||||||||||
2014 | 2013 | ||||||||||||
Net gain (loss) | $ | (6,087 | ) | $ | (2,476 | ) | |||||||
Prior service cost | 4,876 | 6,257 | |||||||||||
Accumulated other comprehensive income (loss) | $ | (1,211 | ) | $ | 3,781 | ||||||||
Weighted Average Assumptions used to Determine Benefit Obligations | Weighted average actuarial assumptions used to determine APBO at year-end December 31, 2014 and 2013 are: | ||||||||||||
2014 | 2013 | ||||||||||||
Discount rate | 3.9 | % | 4.7 | % | |||||||||
Health care cost trend rate assumed for next year | 6.9 | % | 7.1 | % | |||||||||
Rate to which the cost trend rate is assumed to decline | 4.5 | % | 4.5 | % | |||||||||
(ultimate trend rate) | |||||||||||||
Year that the rate reaches the ultimate trend rate | 2027 | 2027 | |||||||||||
Net Periodic Benefit Cost Components | Net periodic postretirement benefit cost included the following components: | ||||||||||||
2014 | 2013 | 2012 | |||||||||||
Service cost | $ | 179 | $ | 222 | $ | 250 | |||||||
Interest cost on APBO | 1,183 | 1,095 | 1,269 | ||||||||||
Amortization of unrecognized prior service cost | (1,381 | ) | (1,381 | ) | (1,035 | ) | |||||||
Amortization of net (gain) loss | — | 309 | — | ||||||||||
Net periodic postretirement benefit expense | $ | (19 | ) | $ | 245 | $ | 484 | ||||||
Significant Actuarial Assumptions used to Determine Net Periodic Pension Cost | Significant actuarial assumptions used to determine postretirement benefit cost at December 31, 2014, 2013 and 2012 are: | ||||||||||||
2014 | 2013 | 2012 | |||||||||||
Discount rate | 4.7 | % | 3.8 | % | 4.5 | % | |||||||
Health care cost trend rate assumed for next year | 7.1 | % | 7.4 | % | 7.6 | % | |||||||
Rate to which the cost trend rate is assumed to decline (ultimate trend rate) | 4.5 | % | 4.5 | % | 4.5 | % | |||||||
Year that the rate reaches the ultimate trend rate | 2027 | 2027 | 2027 |
StockBased_Compensation_Tables
Stock-Based Compensation (Tables) | 12 Months Ended | ||||||||||||||||||||
Dec. 31, 2014 | |||||||||||||||||||||
Disclosure of Compensation Related Costs, Share-based Payments [Abstract] | |||||||||||||||||||||
Summary of Option Activity For HMH Employees | The following tables summarize option activity for HMH employees in stock options for the periods ended December 31, 2014 and 2013: | ||||||||||||||||||||
Number of | Weighted | ||||||||||||||||||||
Shares | Average | ||||||||||||||||||||
Exercise | |||||||||||||||||||||
Price | |||||||||||||||||||||
Balance at December 31, 2012 | 9,904,562 | $ | 12.5 | ||||||||||||||||||
Granted | 3,632,012 | 13.32 | |||||||||||||||||||
Forfeited | (994,456 | ) | 12.51 | ||||||||||||||||||
Balance at December 31, 2013 | 12,542,118 | $ | 12.74 | ||||||||||||||||||
Granted | 943,600 | 19.86 | |||||||||||||||||||
Exercised | (1,876,566 | ) | 12.65 | ||||||||||||||||||
Forfeited | (641,000 | ) | 13.31 | ||||||||||||||||||
Balance at December 31, 2014 | 10,968,152 | $ | 13.33 | ||||||||||||||||||
Options Exercisable at end of year | 4,357,248 | $ | 12.66 | ||||||||||||||||||
Fair Value of Each Option Granted was Estimated on Grant Date using Black-Scholes Valuation Model | The fair value of each option granted was estimated on the grant date using the Black-Scholes valuation model with the following assumptions: | ||||||||||||||||||||
For the | For the | For the | |||||||||||||||||||
Year Ended | Year Ended | Year Ended | |||||||||||||||||||
December 31, | December 31, | December 31, | |||||||||||||||||||
2014 | 2013 | 2012 | |||||||||||||||||||
Expected term (years) (a) | 4.75 | 4.75 | 4 | ||||||||||||||||||
Expected dividend yield | 0 | % | 0 | % | 0 | % | |||||||||||||||
Expected volatility (b) | 20.40%-22.63 | % | 21.42%-24.55 | % | 24.21%-26.54 | % | |||||||||||||||
Risk-free interest rate (c) | 1.49%-1.82 | % | 0.75%-1.71 | % | 0.67%-0.76 | % | |||||||||||||||
(a) | The expected term is the number of years that we estimate that options will be outstanding prior to exercise. | ||||||||||||||||||||
(b) | We have estimated volatility for options granted based on the historical volatility for a group of companies believed to be a representative peer group, selected based on industry and market capitalization, due to lack of sufficient historical publicly traded prices of our own common stock. | ||||||||||||||||||||
(c) | The risk-free interest rate is based on the U.S. Treasury yield for a period commensurate with the expected life of the option. | ||||||||||||||||||||
Summary of Stock Options Outstanding and Exercisable Under Plan | The following tables summarize information about stock options outstanding and exercisable under the plan at December 31, 2014: | ||||||||||||||||||||
Options Outstanding | Options Exercisable | ||||||||||||||||||||
Range of | Options | Weighted | Weighted | Options | Weighted | ||||||||||||||||
Outstanding at | Average | Average | Exercisable at | Average | |||||||||||||||||
Exercise | December 31, | Remaining | Exercise Price | December 31, | Exercise Price | ||||||||||||||||
2014 | Contractual life | 2014 | |||||||||||||||||||
Price | |||||||||||||||||||||
$12.50 | 8,193,586 | 4.6 | $ | 12.5 | 4,017,380 | $ | 12.5 | ||||||||||||||
$13.48 | 1,666,966 | 5.5 | $ | 13.48 | 236,868 | $ | 13.48 | ||||||||||||||
$14.78—$17.84 | 324,000 | 6.4 | $ | 16.67 | 71,000 | $ | 15.6 | ||||||||||||||
$18.28 | 6,600 | 6.4 | $ | 18.28 | — | — | |||||||||||||||
$18.51 | 40,000 | 6.4 | $ | 18.51 | — | — | |||||||||||||||
$18.80 | 20,000 | 6.7 | $ | 18.8 | — | — | |||||||||||||||
$19.24 | 10,000 | 6 | $ | 19.24 | — | — | |||||||||||||||
$19.89 | 32,000 | 9.2 | $ | 19.89 | 32,000 | $ | 19.89 | ||||||||||||||
$20.35 | 50,000 | 6.3 | $ | 20.35 | — | — | |||||||||||||||
$20.49 | 625,000 | 6.9 | $ | 20.49 | — | — | |||||||||||||||
$12.50—$20.49 | 10,968,152 | 4.9 | $ | 13.33 | 4,357,248 | $ | 12.66 | ||||||||||||||
Summary of Restricted Stock Activity for Grants to Certain Executive Employees and Independent Members of Board of Directors | The following table summarizes restricted stock activity for grants to certain employees and independent members of the board of directors in our restricted stock units: | ||||||||||||||||||||
Numbers of | Weighted | ||||||||||||||||||||
Units | Average | ||||||||||||||||||||
Grant Date | |||||||||||||||||||||
Fair Value | |||||||||||||||||||||
Balance at December 31, 2012 | 44,400 | $ | 12.5 | ||||||||||||||||||
Granted | 221,802 | 14.11 | |||||||||||||||||||
Vested | (44,400 | ) | 12.5 | ||||||||||||||||||
Balance at December 31, 2013 | 221,802 | $ | 14.11 | ||||||||||||||||||
Granted | 86,239 | $ | 18.82 | ||||||||||||||||||
Vested | (135,136 | ) | 13.12 | ||||||||||||||||||
Forfeited | (1,040 | ) | 19.24 | ||||||||||||||||||
Balance at December 31, 2014 | 171,865 | $ | 17.22 | ||||||||||||||||||
Fair_Value_Measurements_Tables
Fair Value Measurements (Tables) | 12 Months Ended | ||||||||||||||||
Dec. 31, 2014 | |||||||||||||||||
Fair Value Disclosures [Abstract] | |||||||||||||||||
Summary of Financial Assets and Liabilities Measured at Fair Value on Recurring Basis | The following tables present our financial assets and liabilities measured at fair value on a recurring basis at December 31, 2014 and December 31, 2013: | ||||||||||||||||
2014 | Quoted Prices | Significant | Valuation | ||||||||||||||
in Active | Other | Technique | |||||||||||||||
Markets for | Observable | ||||||||||||||||
Identical Assets | Inputs | ||||||||||||||||
(Level 1) | (Level 2) | ||||||||||||||||
Financial assets | |||||||||||||||||
Money market funds | $ | 438,907 | $ | 438,907 | $ | — | (a) | ||||||||||
U.S. treasury securities | 93,004 | 93,004 | — | (a) | |||||||||||||
U.S. agency securities | 194,028 | — | 194,028 | (a) | |||||||||||||
$ | 725,939 | $ | 531,911 | $ | 194,028 | ||||||||||||
Financial liabilities | |||||||||||||||||
Foreign exchange derivatives | $ | 1,370 | $ | — | $ | 1,370 | (a) | ||||||||||
$ | 1,370 | $ | — | $ | 1,370 | ||||||||||||
2013 | Quoted Prices | Significant | Valuation | ||||||||||||||
in Active | Other | Technique | |||||||||||||||
Markets for | Observable | ||||||||||||||||
Identical Assets | Inputs | ||||||||||||||||
(Level 1) | (Level 2) | ||||||||||||||||
Financial assets | |||||||||||||||||
Money market funds | $ | 259,031 | $ | 259,031 | $ | — | (a | ) | |||||||||
U.S. treasury securities | 57,076 | 57,076 | — | (a | ) | ||||||||||||
U.S. agency securities | 54,645 | — | 54,645 | (a | ) | ||||||||||||
Foreign exchange derivatives | 222 | — | 222 | (a | ) | ||||||||||||
$ | 370,974 | $ | 316,107 | $ | 54,867 | ||||||||||||
Summary of Nonfinancial Assets and Liabilities Measured at Fair Value on Nonrecurring Basis | The following table presents our nonfinancial assets and liabilities measured at fair value on a nonrecurring basis during 2014 and 2013: | ||||||||||||||||
2014 | Significant | Total | Valuation | ||||||||||||||
Unobservable | Impairment | Technique | |||||||||||||||
Inputs | |||||||||||||||||
(Level 3) | |||||||||||||||||
Nonfinancial assets | |||||||||||||||||
Investment in preferred stock | $ | — | $ | — | $ | 1,279 | (b) | ||||||||||
Other intangible assets | 3,800 | 3,800 | 400 | (a)(c) | |||||||||||||
$ | 3,800 | $ | 3,800 | $ | 1,679 | ||||||||||||
2013 | Significant | Total | Valuation | ||||||||||||||
Unobservable | Impairment | Technique | |||||||||||||||
Inputs | |||||||||||||||||
(Level 3) | |||||||||||||||||
Nonfinancial assets | |||||||||||||||||
Property, plant, and equipment | $ | — | $ | — | $ | 7,439 | (b) | ||||||||||
Pre-publication costs | — | — | 1,061 | (b) | |||||||||||||
Other intangible assets | 4,200 | 4,200 | 500 | (a)(c) | |||||||||||||
$ | 4,200 | $ | 4,200 | $ | 9,000 | ||||||||||||
Nonfinancial liabilities | |||||||||||||||||
Contingent consideration liability associated with acquisitions | $ | 1,881 | $ | 1,881 | $ | — | (c) | ||||||||||
$ | 1,881 | $ | 1,881 | $ | — | ||||||||||||
Summary of Changes in Fair Value of Level 3 Liabilities Measured on Recurring Basis | The following table presents a summary of changes in fair value of the Company’s Level 3 liabilities measured on a recurring basis for 2014 and 2013: | ||||||||||||||||
Level 3 | |||||||||||||||||
Inputs | |||||||||||||||||
Liabilities | |||||||||||||||||
Balance at December 31, 2012 | $ | 5,055 | |||||||||||||||
Change in fair value of contingent consideration liability, included in selling and administrative expenses | (1,781 | ) | |||||||||||||||
Change in fair value of contingent consideration liability, included in interest expense | 182 | ||||||||||||||||
Payments of contingent consideration liability | (1,575 | ) | |||||||||||||||
Balance at December 31, 2013 | 1,881 | ||||||||||||||||
Change in fair value of contingent consideration liability, included in selling and administrative expenses | (2,000 | ) | |||||||||||||||
Change in fair value of contingent consideration liability, included in interest expense | 119 | ||||||||||||||||
Balance at December 31, 2014 | $ | — | |||||||||||||||
Summary of Carrying Amounts and Estimated Fair Market Values of Debt | The fair value of debt is deemed to be the amount at which the instrument could be exchanged in an orderly transaction between market participants at the measurement date. | ||||||||||||||||
December 31, 2014 | December 31, 2013 | ||||||||||||||||
Carrying | Estimated | Carrying | Estimated | ||||||||||||||
Amount | Fair Value | Amount | Fair Value | ||||||||||||||
Debt | |||||||||||||||||
$250,000 Term loan | $ | 243,125 | $ | 242,517 | $ | 245,625 | $ | 247,774 |
Commitments_and_Contingencies_
Commitments and Contingencies (Tables) | 12 Months Ended | ||||
Dec. 31, 2014 | |||||
Commitments and Contingencies Disclosure [Abstract] | |||||
Future Minimum Rental Commitments under Noncancelable Leases | The future minimum rental commitments under all noncancelable leases (with initial or remaining lease terms in excess of one year) for real estate and equipment are payable as follows: | ||||
Operating | |||||
Leases | |||||
2015 | 42,547 | ||||
2016 | 36,883 | ||||
2017 | 18,949 | ||||
2018 | 14,786 | ||||
2019 | 11,997 | ||||
Thereafter | 33,600 | ||||
Total minimum lease payments | 158,762 | ||||
Total future minimal rentals under subleases | 26,239 |
Net_Loss_Per_Share_Tables
Net Loss Per Share (Tables) | 12 Months Ended | ||||||||||||
Dec. 31, 2014 | |||||||||||||
Earnings Per Share [Abstract] | |||||||||||||
Computation of Basic and Diluted Earnings per Share | The following table sets forth the computation of basic and diluted earnings per share (“EPS”): | ||||||||||||
For the Year | For the Year | For the Year | |||||||||||
Ended | Ended | Ended | |||||||||||
December 31, | December 31, | December 31, | |||||||||||
2014 | 2013 | 2012 | |||||||||||
Numerator | |||||||||||||
Net loss attributable to common stockholders | $ | (111,491 | ) | $ | (111,186 | ) | $ | (87,139 | ) | ||||
Denominator | |||||||||||||
Weighted average shares outstanding | |||||||||||||
Basic | 140,594,689 | 139,928,650 | 340,918,128 | ||||||||||
Diluted | 140,594,689 | 139,928,650 | 340,918,128 | ||||||||||
Net loss per share attributable to common stockholders | |||||||||||||
Basic | $ | (0.79 | ) | $ | (0.79 | ) | $ | (0.26 | ) | ||||
Diluted | $ | (0.79 | ) | $ | (0.79 | ) | $ | (0.26 | ) | ||||
Summary of Anti-Dilutive Securities Excluded from Computation of Diluted EPS | The following table summarizes our weighted average outstanding common stock equivalents that were anti-dilutive due to the net loss attributable to common stockholders during the periods, and therefore excluded from the computation of diluted EPS: | ||||||||||||
For the Year | For the Year | For the Year | |||||||||||
Ended | Ended | Ended | |||||||||||
December 31, | December 31, | December 31, | |||||||||||
2014 | 2013 | 2012 | |||||||||||
Stock options | 10,341,948 | 10,921,049 | 6,609,382 | ||||||||||
Restricted stock units | 153,314 | 166,928 | 141,086 |
Segment_Reporting_Tables
Segment Reporting (Tables) | 12 Months Ended | ||||||||||||||||
Dec. 31, 2014 | |||||||||||||||||
Segment Reporting [Abstract] | |||||||||||||||||
Consolidated Operating Income (Loss) | Although we exclude these amounts from segment Adjusted EBITDA, they are included in reported consolidated operating income (loss) and are included in the reconciliation below. | ||||||||||||||||
(in thousands) | Year Ended December 31, | Total | |||||||||||||||
Education | Trade | Corporate/ | |||||||||||||||
Publishing | Other | ||||||||||||||||
2014 | |||||||||||||||||
Net sales | $ | 1,209,142 | $ | 163,174 | $ | — | $ | 1,372,316 | |||||||||
Segment adjusted EBITDA | 298,483 | 12,675 | (45,775 | ) | 265,383 | ||||||||||||
2013 | |||||||||||||||||
Net sales | $ | 1,207,908 | $ | 170,704 | $ | — | $ | 1,378,612 | |||||||||
Segment adjusted EBITDA | 343,183 | 24,448 | (42,613 | ) | 325,018 | ||||||||||||
2012 | |||||||||||||||||
Net sales | $ | 1,128,591 | $ | 157,050 | $ | — | $ | 1,285,641 | |||||||||
Segment adjusted EBITDA | 329,723 | 28,774 | (38,685 | ) | 319,812 | ||||||||||||
Consolidated Statements of Operations | Reconciliation of Adjusted EBITDA to the consolidated statements of operations is as follows: | ||||||||||||||||
(in thousands) | Year Ended December 31, | ||||||||||||||||
2014 | 2013 | 2012 | |||||||||||||||
Total Segment Adjusted EBITDA | $ | 265,383 | $ | 325,018 | $ | 319,812 | |||||||||||
Interest expense | (18,245 | ) | (21,344 | ) | (123,197 | ) | |||||||||||
Depreciation expense | (72,290 | ) | (61,705 | ) | (58,131 | ) | |||||||||||
Amortization expense | (247,487 | ) | (280,271 | ) | (370,291 | ) | |||||||||||
Stock compensation | (11,376 | ) | (9,524 | ) | (4,227 | ) | |||||||||||
Gain (loss) on derivative instruments | (1,593 | ) | (252 | ) | 1,688 | ||||||||||||
Asset impairment charges | (1,679 | ) | (9,000 | ) | (8,003 | ) | |||||||||||
Purchase accounting adjustments | (3,661 | ) | (11,460 | ) | 16,511 | ||||||||||||
Fees, expenses or charges for equity offerings, debt or acquisitions | (4,424 | ) | (23,540 | ) | (267 | ) | |||||||||||
Debt restructuring | — | (598 | ) | — | |||||||||||||
Restructuring | (2,577 | ) | (3,123 | ) | (6,716 | ) | |||||||||||
Severance, separation costs and facility closures | (7,300 | ) | (13,040 | ) | (9,375 | ) | |||||||||||
Reorganization items, net | — | — | 149,114 | ||||||||||||||
Loss from continuing operations before taxes | (105,249 | ) | (108,839 | ) | (93,082 | ) | |||||||||||
Provision (benefit) for income taxes | 6,242 | 2,347 | (5,943 | ) | |||||||||||||
Net loss | $ | (111,491 | ) | $ | (111,186 | ) | $ | (87,139 | ) | ||||||||
Segment Information | Segment information as of December 31, 2014 and 2013 is as follows: | ||||||||||||||||
(in thousands) | |||||||||||||||||
2014 | 2013 | ||||||||||||||||
Total assets—Education segment | $ | 2,003,683 | $ | 2,206,690 | |||||||||||||
Total assets—Trade Publishing segment | 218,530 | 231,918 | |||||||||||||||
Total assets—Corporate and Other | 788,894 | 471,778 | |||||||||||||||
$ | 3,011,107 | $ | 2,910,386 | ||||||||||||||
Schedule of Long-Lived Assets | The following represents long-lived assets outside of the United States, which are substantially in Ireland. All other long-lived assets are located in the United States. | ||||||||||||||||
(in thousands) | 2014 | 2013 | |||||||||||||||
Long-lived assets - International | $ | 4,239 | $ | 13,425 | |||||||||||||
Schedule of Net Sales by Geographic Region | The following is a schedule of net sales by geographic region: | ||||||||||||||||
(in thousands) | |||||||||||||||||
Year Ended December 31, 2014 | |||||||||||||||||
Net sales—U.S. | $ | 1,291,199 | |||||||||||||||
Net sales—International | 81,117 | ||||||||||||||||
Total net sales | $ | 1,372,316 | |||||||||||||||
Year Ended December 31, 2013 | |||||||||||||||||
Net sales—U.S. | $ | 1,296,563 | |||||||||||||||
Net sales—International | 82,049 | ||||||||||||||||
Total net sales | $ | 1,378,612 | |||||||||||||||
Year Ended December 31, 2012 | |||||||||||||||||
Net sales—U.S. | $ | 1,206,972 | |||||||||||||||
Net sales—International | 78,669 | ||||||||||||||||
Total net sales | $ | 1,285,641 |
Valuation_and_Qualifying_Accou1
Valuation and Qualifying Accounts (Tables) | 12 Months Ended | ||||||||||||||||
Dec. 31, 2014 | |||||||||||||||||
Valuation and Qualifying Accounts [Abstract] | |||||||||||||||||
Valuation and Qualifying Accounts | Balance at | Net Charges | Utilization of | Balance at | |||||||||||||
Beginning | to Revenues | Allowances | End of | ||||||||||||||
of Year | or Expenses | Year | |||||||||||||||
and | |||||||||||||||||
Additions | |||||||||||||||||
2014 | |||||||||||||||||
Allowance for doubtful accounts | $ | 5,084 | $ | 3,274 | $ | (2,733 | ) | $ | 5,625 | ||||||||
Reserve for returns | 35,548 | 53,877 | (67,266 | ) | 22,159 | ||||||||||||
Reserve for royalty advances | 41,248 | 13,829 | (77 | ) | 55,000 | ||||||||||||
Deferred tax valuation allowance | 527,960 | 25,947 | (3,247 | ) | 550,660 | ||||||||||||
2013 | |||||||||||||||||
Allowance for doubtful accounts | $ | 10,543 | $ | 2,261 | $ | (7,720 | ) | $ | 5,084 | ||||||||
Reserve for returns | 25,784 | 58,290 | (48,526 | ) | 35,548 | ||||||||||||
Reserve for royalty advances | 26,194 | 16,949 | (1,895 | ) | 41,248 | ||||||||||||
Deferred tax valuation allowance | 512,234 | 15,726 | — | 527,960 | |||||||||||||
2012 | |||||||||||||||||
Allowance for doubtful accounts | $ | 18,229 | $ | 2,113 | $ | (9,799 | ) | $ | 10,543 | ||||||||
Reserve for returns | 25,614 | 44,213 | (44,043 | ) | 25,784 | ||||||||||||
Reserve for royalty advances | 12,252 | 14,536 | (594 | ) | 26,194 | ||||||||||||
Deferred tax valuation allowance (1) | 822,485 | — | (310,251 | ) | 512,234 | ||||||||||||
-1 | Deferred tax valuation allowance was reduced in connection with the accounting for emergence from bankruptcy in the year ended December 31, 2012. |
Quarterly_Results_of_Operation1
Quarterly Results of Operations (Unaudited) (Tables) | 12 Months Ended | ||||||||||||||||
Dec. 31, 2014 | |||||||||||||||||
Quarterly Financial Information Disclosure [Abstract] | |||||||||||||||||
Quarterly Results of Operations | Three Months Ended | ||||||||||||||||
March 31, | June 30, | September 30, | December 31, | ||||||||||||||
2014:00:00 | |||||||||||||||||
Net sales | $ | 153,933 | $ | 401,890 | $ | 551,008 | $ | 265,485 | |||||||||
Gross profit | 1,560 | 178,255 | 287,102 | 81,356 | |||||||||||||
Operating income (loss) | (140,152 | ) | 18,324 | 116,151 | (79,734 | ) | |||||||||||
Net income (loss) | (146,335 | ) | 11,548 | 107,030 | (83,734 | ) | |||||||||||
2013:00:00 | |||||||||||||||||
Net sales | $ | 166,594 | $ | 362,951 | $ | 550,190 | $ | 298,877 | |||||||||
Gross profit | 13,927 | 140,562 | 270,124 | 107,637 | |||||||||||||
Operating income (loss) | (128,989 | ) | (5,639 | ) | 107,535 | (59,552 | ) | ||||||||||
Net income (loss) | (137,381 | ) | (14,266 | ) | 105,112 | (64,651 | ) |
Basis_of_Presentation_Addition
Basis of Presentation - Additional Information (Detail) (USD $) | 12 Months Ended | 3 Months Ended | 9 Months Ended | 12 Months Ended | 0 Months Ended | 3 Months Ended | ||||||||
In Millions, except Share data, unless otherwise specified | Dec. 31, 2014 | Mar. 31, 2014 | Dec. 31, 2013 | Sep. 30, 2013 | Dec. 31, 2012 | Dec. 31, 2011 | Dec. 31, 2013 | 10-May-12 | Sep. 30, 2013 | Jun. 30, 2013 | Sep. 30, 2012 | Jun. 30, 2012 | Sep. 30, 2011 | Jun. 30, 2011 |
Country | ||||||||||||||
Student | ||||||||||||||
Collaborative Arrangements and Non-collaborative Arrangement Transactions [Line Items] | ||||||||||||||
Services provided, number of students | 50,000,000 | |||||||||||||
Services provided, number of countries | 150 | |||||||||||||
Terms of plan | On MayB 10, 2012, we entered into a Restructuring Support Agreement (bPlan Support Agreementb) with consenting creditors holding greater than 74% of the principal amount of the then-outstanding senior secured indebtedness of the Company and with equity owners holding approximately 64% of the Companybs then-outstanding common stock. | |||||||||||||
Petition for bankruptcy, filing date | 21-May-12 | |||||||||||||
Reverse stock split, description | The Board of Directors approved a 2-for-1 stock split of the Companybs common stock, which occurred on OctoberB 22, 2013. | |||||||||||||
Preferred stock, shares authorized | 20,000,000 | 20,000,000 | 20,000,000 | |||||||||||
Common stock, shares authorized | 380,000,000 | 380,000,000 | 380,000,000 | |||||||||||
Fourth Quarter, 2013 [Member] | ||||||||||||||
Collaborative Arrangements and Non-collaborative Arrangement Transactions [Line Items] | ||||||||||||||
Prior period adjustment description | During the fourth quarter of 2013, we recorded an out-of-period correction of approximately $5.7 million of additional net sales that was deferred and should have been recognized previously in 2011 ($4.5 million), 2012 ($0.9 million), and the first nine months of 2013 ($0.3 million). In addition, during 2013, we recorded approximately $2.6 million of incremental expense related to prior years. These out-of-period corrections had no impact on cash or debt covenants compliance. Management believes these out-of-period corrections are not material to the current period financial statements or any previously issued financial statements. | |||||||||||||
First Quarter, 2014 [Member] | ||||||||||||||
Collaborative Arrangements and Non-collaborative Arrangement Transactions [Line Items] | ||||||||||||||
Prior period adjustment description | During the first quarter of 2014, we recorded an out-of-period correction of approximately $1.1 million reducing net sales and increasing deferred revenue that should have been deferred previously. In addition, during the first quarter of 2014, we recorded approximately $3.5 million of incremental expense, primarily commissions, related to the prior year. These out-of-period corrections had no impact on our debt covenant compliance. Management believes these out-of-period corrections are not material to the current period financial statements or any previously issued financial statements. Additionally, we revised previously reported balance sheet amounts to severance and other charges of $7.3 million, which has been reclassified as long-term and to current deferred revenue of $5.2 million which has also been reclassified as long-term. The revision was not material to the reported consolidated balance sheet for any previously filed periods. | |||||||||||||
Additional Net Sales [Member] | ||||||||||||||
Collaborative Arrangements and Non-collaborative Arrangement Transactions [Line Items] | ||||||||||||||
Amount reclassified as long term | $1.10 | $5.70 | $0.30 | $0.90 | $4.50 | |||||||||
Incremental Expense [Member] | ||||||||||||||
Collaborative Arrangements and Non-collaborative Arrangement Transactions [Line Items] | ||||||||||||||
Amount reclassified as long term | 3.5 | 2.6 | ||||||||||||
Severance and Other Charges [Member] | ||||||||||||||
Collaborative Arrangements and Non-collaborative Arrangement Transactions [Line Items] | ||||||||||||||
Amount reclassified as long term | 7.3 | |||||||||||||
Current Deferred Revenue [Member] | ||||||||||||||
Collaborative Arrangements and Non-collaborative Arrangement Transactions [Line Items] | ||||||||||||||
Amount reclassified as long term | 5.2 | |||||||||||||
Senior Secured Indebtedness [Member] | ||||||||||||||
Collaborative Arrangements and Non-collaborative Arrangement Transactions [Line Items] | ||||||||||||||
Percentage of senior secured indebtedness in restructuring agreement | 74.00% | |||||||||||||
Equity Securities [Member] | ||||||||||||||
Collaborative Arrangements and Non-collaborative Arrangement Transactions [Line Items] | ||||||||||||||
Percentage of senior secured indebtedness in restructuring agreement | 64.00% | |||||||||||||
Seasonal Concentration Risk [Member] | Consolidated Net Sales [Member] | ||||||||||||||
Collaborative Arrangements and Non-collaborative Arrangement Transactions [Line Items] | ||||||||||||||
Consolidated net sales, realized percentage | 67.00% | 67.00% | 67.00% | 67.00% | 67.00% | 67.00% |
Chapter_11_Reorganization_Disc2
Chapter 11 Reorganization Disclosures - Additional Information (Detail) (USD $) | 0 Months Ended | 12 Months Ended | ||||
Jun. 22, 2012 | Dec. 31, 2014 | Dec. 31, 2013 | Dec. 31, 2012 | 22-May-12 | 21-May-12 | |
Reorganization [Line Items] | ||||||
Outstanding common stock owned, percent | 50.00% | |||||
Protection payments | $69,700,000 | $69,701,000 | ||||
Conversion fees | 30,300,000 | 30,299,000 | ||||
Common stock, shares authorized | 380,000,000 | 380,000,000 | ||||
Preferred stock, shares authorized | 20,000,000 | 20,000,000 | ||||
Preferred stock, par value | $0.01 | $0.01 | ||||
Stock options granted to executive officers | 943,600 | 3,632,012 | ||||
Restricted stock units granted | 86,239 | 221,802 | ||||
Principal amount outstanding | 3,142,234,000 | |||||
Line of credit facility, cash received | 30,300,000 | |||||
Senior secured credit facility | 500,000,000 | 500,000,000 | ||||
Percentage of (gain) loss on extinguishment allocated to capital in excess of par value | 86.20% | |||||
Liabilities subject to compromise | 0 | 0 | 0 | 3,142,234,000 | ||
10.5% Senior Secured Notes due 2019 [Member] | ||||||
Reorganization [Line Items] | ||||||
Principal amount outstanding | 300,000,000 | 300,000,000 | ||||
Senior secured notes, interest rate | 10.50% | 10.50% | 10.50% | |||
Liabilities subject to compromise | 300,000,000 | |||||
Common Stock [Member] | ||||||
Reorganization [Line Items] | ||||||
Percentage of pro rata ownership | 100.00% | |||||
Warrants to Purchase Common Stock [Member] | ||||||
Reorganization [Line Items] | ||||||
Percentage of pro rata ownership | 5.00% | |||||
Term Loan [Member] | ||||||
Reorganization [Line Items] | ||||||
Line of credit facility, principal outstanding | 2,600,000,000 | 2,668,690,000 | ||||
Senior secured credit facility | 250,000,000 | 250,000,000 | ||||
Liabilities subject to compromise | 2,570,815,000 | |||||
Revolving Credit Facility [Member[ | ||||||
Reorganization [Line Items] | ||||||
Line of credit facility, principal outstanding | 235,800,000 | 235,751,000 | ||||
Senior secured credit facility | 250,000,000 | |||||
Liabilities subject to compromise | 235,751,000 | |||||
Maximum [Member] | ||||||
Reorganization [Line Items] | ||||||
Vesting period | 4 years | |||||
Minimum [Member] | ||||||
Reorganization [Line Items] | ||||||
Vesting period | 1 year | |||||
Management Incentive Plan [Member] | Employee Stock Option [Member] | Maximum [Member] | ||||||
Reorganization [Line Items] | ||||||
Vesting period | 4 years | |||||
Management Incentive Plan [Member] | Employee Stock Option [Member] | Minimum [Member] | ||||||
Reorganization [Line Items] | ||||||
Vesting period | 3 years | |||||
Management Incentive Plan [Member] | Independent Directors and Executive Officers [Member] | Maximum [Member] | ||||||
Reorganization [Line Items] | ||||||
Percentage of common stock reserved for management and employees | 10.00% | |||||
Management Incentive Plan [Member] | Executive Officer [Member] | ||||||
Reorganization [Line Items] | ||||||
Stock options granted to executive officers | 9,251,462 | |||||
Stock options, exercise price | $12.50 | |||||
Management Incentive Plan [Member] | Independent Directors [Member] | Employee Stock Option [Member] | ||||||
Reorganization [Line Items] | ||||||
Vesting period | 1 year | |||||
Restricted stock units granted | 24,000 | |||||
Existing Shareholders Prior to Petition Date [Member] | ||||||
Reorganization [Line Items] | ||||||
Protection payments | 60,100,000 | |||||
Conversion fees | $26,100,000 |
Chapter_11_Reorganization_Disc3
Chapter 11 Reorganization Disclosures - Summary of Transactions Affecting Debt (Detail) (USD $) | 0 Months Ended | 12 Months Ended |
In Thousands, unless otherwise specified | Jun. 22, 2012 | Dec. 31, 2012 |
Reorganizations [Abstract] | ||
Debt balance prior to emergence from bankruptcy (including accrued interest) | ($3,142,234) | |
Exchange of debt for new common shares | 1,750,000 | |
Elimination of debt discount and deferred financing fees | 98,352 | |
Adequate protection payments | 69,700 | 69,701 |
Conversion fees | 30,300 | 30,299 |
Professional fees | 21,726 | |
(Gain) loss on extinguishment | ($1,172,156) |
Chapter_11_Reorganization_Disc4
Chapter 11 Reorganization Disclosures - Summary of Gain from Reorganization Items (Detail) (USD $) | 0 Months Ended | 12 Months Ended | ||
Jan. 01, 2013 | Jun. 22, 2012 | Dec. 31, 2012 | Dec. 31, 2014 | |
Reorganization [Line Items] | ||||
Debt to equity conversion | ($1,392,234,000) | |||
Elimination of debt discount and deferred financing fees | 98,352,000 | |||
Adequate protection payments | 69,700,000 | 69,701,000 | ||
Conversion fees | 30,300,000 | 30,299,000 | ||
Professional fees | 21,726,000 | |||
(Gain) loss on extinguishment | -1,172,156,000 | |||
Stock compensation | 2,027,000 | |||
Issuance of warrants | 1,300,000,000 | 10,747,000 | ||
Reorganization items, net | -1,159,382,000 | |||
Capital in Excess of Par Value [Member] | ||||
Reorganization [Line Items] | ||||
Debt to equity conversion | -1,199,549,000 | |||
Elimination of debt discount and deferred financing fees | 84,740,000 | |||
Adequate protection payments | 60,054,000 | |||
Conversion fees | 26,106,000 | |||
Professional fees | 18,381,000 | |||
(Gain) loss on extinguishment | -1,010,268,000 | -1,010,300 | ||
Reorganization items, net | -1,010,268,000 | |||
Reorganization Items, Net [Member] | ||||
Reorganization [Line Items] | ||||
Debt to equity conversion | -192,685,000 | |||
Elimination of debt discount and deferred financing fees | 13,612,000 | |||
Adequate protection payments | 9,647,000 | |||
Conversion fees | 4,193,000 | |||
Professional fees | 3,345,000 | |||
(Gain) loss on extinguishment | -161,888,000 | |||
Stock compensation | 2,027,000 | |||
Issuance of warrants | 10,747,000 | |||
Reorganization items, net | ($149,114,000) |
Chapter_11_Reorganization_Disc5
Chapter 11 Reorganization Disclosures - Summary of Liabilities Subject to Compromise Reflected in Consolidated Balance Sheet (Detail) (USD $) | Dec. 31, 2014 | Dec. 31, 2013 | Dec. 31, 2012 | 21-May-12 |
Liabilities Subject To Compromise [Line Items] | ||||
Accrued interest | $35,668,000 | |||
Liabilities subject to compromise | 0 | 0 | 0 | 3,142,234,000 |
10.5% Senior Secured Notes due 2019 [Member] | ||||
Liabilities Subject To Compromise [Line Items] | ||||
Liabilities subject to compromise | 300,000,000 | |||
Term Loan [Member] | ||||
Liabilities Subject To Compromise [Line Items] | ||||
Liabilities subject to compromise | 2,570,815,000 | |||
Revolving Credit Facility [Member[ | ||||
Liabilities Subject To Compromise [Line Items] | ||||
Liabilities subject to compromise | $235,751,000 |
Chapter_11_Reorganization_Disc6
Chapter 11 Reorganization Disclosures - Summary of Liabilities Subject to Compromise Reflected in Consolidated Balance Sheet (Parenthetical) (Detail) (USD $) | Dec. 31, 2012 | Jun. 22, 2012 | 21-May-12 | Dec. 31, 2014 |
In Thousands, unless otherwise specified | ||||
Liabilities Subject To Compromise [Line Items] | ||||
Secured notes, face value | $3,142,234 | |||
Revolving Credit Facility [Member[ | ||||
Liabilities Subject To Compromise [Line Items] | ||||
Line of credit, face value | 235,800 | 235,751 | ||
Term Loan [Member] | ||||
Liabilities Subject To Compromise [Line Items] | ||||
Line of credit, face value | 2,600,000 | 2,668,690 | ||
10.5% Senior Secured Notes due 2019 [Member] | ||||
Liabilities Subject To Compromise [Line Items] | ||||
Secured notes, face value | $300,000 | $300,000 | ||
Senior Secured Note | 10.50% | 10.50% | 10.50% |
Significant_Accounting_Policie3
Significant Accounting Policies - Additional Information (Detail) (USD $) | 12 Months Ended | ||
Dec. 31, 2014 | Dec. 31, 2013 | Dec. 31, 2012 | |
Significant Accounting Policies [Line Items] | |||
Advertising costs | $8,600,000 | $8,000,000 | $6,700,000 |
Cash and cash equivalents, maturity period | Three months or less | ||
Short-term investments, maturity period | Between three and twelve months | ||
Impaired amount of software development costs | 0 | 7,400,000 | 2,600,000 |
Impairment charges | 1,679,000 | 9,000,000 | 8,003,000 |
Derivative instruments qualified for hedge accounting | 0 | 0 | 0 |
Minimum [Member] | |||
Significant Accounting Policies [Line Items] | |||
Acquired publication rights and customer-related intangibles, amortization period | 3 years | ||
Percentage Of Tax Benefits Recognized Upon Settlement | 50.00% | ||
Maximum [Member] | |||
Significant Accounting Policies [Line Items] | |||
Acquired publication rights and customer-related intangibles, amortization period | 20 years | ||
Goodwill And Other Assets [Member] | |||
Significant Accounting Policies [Line Items] | |||
Impairment charges | 400,000 | 500,000 | 5,000,000 |
Pre-publication Costs [Member] | |||
Significant Accounting Policies [Line Items] | |||
Amortization expense for pre-publication cost, year 1 | 33.00% | ||
Amortization expense for pre-publication cost, year 2 | 27.00% | ||
Amortization expense for pre-publication cost, year 3 | 20.00% | ||
Amortization expense for pre-publication cost, year 4 | 13.00% | ||
Amortization expense for pre-publication cost, year 5 | 7.00% | ||
Amortization of intangible assets, cost of sales | 129,700,000 | 121,700,000 | 137,700,000 |
Impairment charges | $0 | $1,061,000 | $400,000 |
Significant_Accounting_Policie4
Significant Accounting Policies - Summary of Estimated Useful Lives of Property, Plant and Equipment (Detail) | 12 Months Ended |
Dec. 31, 2014 | |
Building and Building Equipment [Member] | Minimum [Member] | |
Property, Plant and Equipment [Line Items] | |
Property plant and equipment, estimated useful life | 10 years |
Building and Building Equipment [Member] | Maximum [Member] | |
Property, Plant and Equipment [Line Items] | |
Property plant and equipment, estimated useful life | 35 years |
Machinery and Equipment [Member] | Minimum [Member] | |
Property, Plant and Equipment [Line Items] | |
Property plant and equipment, estimated useful life | 2 years |
Machinery and Equipment [Member] | Maximum [Member] | |
Property, Plant and Equipment [Line Items] | |
Property plant and equipment, estimated useful life | 15 years |
Capitalized Software [Member] | Minimum [Member] | |
Property, Plant and Equipment [Line Items] | |
Property plant and equipment, estimated useful life | 3 years |
Capitalized Software [Member] | Maximum [Member] | |
Property, Plant and Equipment [Line Items] | |
Property plant and equipment, estimated useful life | 5 years |
Leasehold Improvements [Member] | |
Property, Plant and Equipment [Line Items] | |
Property plant and equipment, estimated useful life | Lesser of useful life or lease term |
Acquisitions_Additional_Inform
Acquisitions - Additional Information (Detail) (USD $) | 0 Months Ended | 12 Months Ended | |||||
Oct. 28, 2013 | Apr. 10, 2013 | Dec. 31, 2014 | Dec. 31, 2013 | Dec. 31, 2012 | 19-May-14 | Jun. 30, 2014 | |
Business Acquisition [Line Items] | |||||||
Total aggregate purchase price of acquisitions | $9,500,000 | ||||||
Business Acquisition, cash | 2,500,000 | 500,000 | 9,100,000 | ||||
Business acquisitions, accrued liabilities | 400,000 | ||||||
Business acquisitions, goodwill | 1,100,000 | ||||||
Business Acquisition, Other intangible Assets | 10,400,000 | 1,600,000 | 200,000 | ||||
Business acquisition, author advances | 3,100,000 | ||||||
Business acquisitions, property, plant, and equipment | 6,800,000 | ||||||
Business Acquisition, other assets | 800,000 | 1,700,000 | 400,000 | ||||
Business Acquisition, other liabilities | 1,400,000 | 2,200,000 | 1,700,000 | ||||
Investment in preferred stock | 1,500,000 | ||||||
Impairment of investments | 1,679,000 | 9,000,000 | 8,003,000 | ||||
Business Acquisition, purchase Price | 15,900,000 | 7,300,000 | |||||
Business Acquisition, goodwill | 7,600,000 | 4,100,000 | 532,921,000 | 531,786,000 | 520,088,000 | ||
Business Acquisition, deferred tax liabilities | 4,000,000 | ||||||
Business Acquisition, cash paid | 5,800,000 | ||||||
Business Acquisition Future Cash Payment | 1,575,000 | ||||||
Business Acquisition, due period of liability incurred | 6 years | ||||||
Business Acquisition Purchase Price Allocation Working Capital Adjustment | 100,000 | ||||||
Business Acquisition, cash paid | 9,091,000 | 18,695,000 | 11,000,000 | ||||
Business Acquisition, gain on bargain purchase | 30,751,000 | ||||||
Promissory Notes [Member] | |||||||
Business Acquisition [Line Items] | |||||||
Business Acquisition Future Cash Payment | 1,500,000 | ||||||
Business Acquisition, due period of liability incurred | 2 years | ||||||
Channel One News [Member] | |||||||
Business Acquisition [Line Items] | |||||||
Acquisition date | 12-May-14 | ||||||
Curiosity Ville [Member] | |||||||
Business Acquisition [Line Items] | |||||||
Acquisition date | 19-May-14 | ||||||
Business acquisition, percentage of ownership | 100.00% | ||||||
School Chapters [Member] | |||||||
Business Acquisition [Line Items] | |||||||
Acquisition date | 30-Jun-14 | ||||||
Business acquisition, percentage of ownership | 100.00% | ||||||
Certain Asset Product Lines From A Third Party [Member] | |||||||
Business Acquisition [Line Items] | |||||||
Business acquisition, author advances | 6,200,000 | ||||||
Business Acquisition, other assets | 5,100,000 | ||||||
Business Acquisition, gain on bargain purchase | 30,751,000 | ||||||
Business acquisition, intangible assets | 30,400,000 | ||||||
Certain Asset Product Lines From A Third Party [Member] | Intellectual Property [Member] | |||||||
Business Acquisition [Line Items] | |||||||
Business Acquisition, purchase Price | 11,000,000 | ||||||
Business Acquisition, cash paid | $11,000,000 |
Balance_Sheet_Information_Esti
Balance Sheet Information - Estimated Fair Value of Short Term Investments (Detail) (Short-term Investments [Member], USD $) | Dec. 31, 2014 | Dec. 31, 2013 |
In Thousands, unless otherwise specified | ||
Schedule of Available-for-sale Securities [Line Items] | ||
Amortized cost | $286,675 | $111,721 |
Unrealized gains | 10 | 4 |
Unrealized losses | -99 | -4 |
Estimated fair value | 286,764 | 111,721 |
U.S. Government and Agency Securities [Member] | ||
Schedule of Available-for-sale Securities [Line Items] | ||
Amortized cost | 286,675 | 111,721 |
Unrealized gains | 10 | 4 |
Unrealized losses | -99 | -4 |
Estimated fair value | $286,764 | $111,721 |
Balance_Sheet_Information_Acco
Balance Sheet Information - Accounts Receivable (Detail) (USD $) | Dec. 31, 2014 | Dec. 31, 2013 |
In Thousands, unless otherwise specified | ||
Accounts Receivable [Line Items] | ||
Accounts receivable | $283,453 | $358,734 |
Accounts Receivable, Net, Total | 255,669 | 318,101 |
Allowance for Bad Debt [Member] | ||
Accounts Receivable [Line Items] | ||
Allowance for bad debt | -5,625 | -5,084 |
Reserve for Book Returns [Member] | ||
Accounts Receivable [Line Items] | ||
Allowance for bad debt | ($22,159) | ($35,549) |
Balance_Sheet_Information_Sche
Balance Sheet Information - Schedule of Inventories (Detail) (USD $) | Dec. 31, 2014 | Dec. 31, 2013 |
In Thousands, unless otherwise specified | ||
Offsetting [Abstract] | ||
Finished goods | $178,812 | $177,017 |
Raw materials | 5,149 | 5,177 |
Inventory | $183,961 | $182,194 |
Balance_Sheet_Information_Bala
Balance Sheet Information - Balances of Major Classes of Assets and Accumulated Depreciation and Amortization (Detail) (USD $) | Dec. 31, 2014 | Dec. 31, 2013 |
In Thousands, unless otherwise specified | ||
Offsetting [Abstract] | ||
Land and land improvements | $4,717 | $4,717 |
Building and building equipment | 9,723 | 9,505 |
Machinery and equipment | 18,766 | 15,223 |
Capitalized software | 350,179 | 294,361 |
Leasehold improvements | 28,719 | 27,961 |
Property, Plant and Equipment, Gross, Total | 412,104 | 351,767 |
Less: Accumulated depreciation and amortization | -273,742 | -210,919 |
Property, plant, and equipment, net | $138,362 | $140,848 |
Balance_Sheet_Information_Addi
Balance Sheet Information - Additional Information (Detail) (USD $) | 12 Months Ended | ||
Dec. 31, 2014 | Dec. 31, 2013 | Dec. 31, 2012 | |
Balance Sheet Details [Line Items] | |||
Depreciation | $72,290,000 | $61,705,000 | $58,131,000 |
Property, plant, and equipment acquired under capital lease agreements | 6,900,000 | 6,000,000 | |
Future minimum lease payment due under non-cancelable capital lease in 2015 | 2,400,000 | ||
Future minimum lease payment due under non-cancelable capital lease in 2016 | 1,400,000 | ||
Amortization of defined benefit pension and postretirement benefit plans | -1,400,000 | 600,000 | 900,000 |
Adjustments [Member] | |||
Balance Sheet Details [Line Items] | |||
Depreciation | $72,300,000 | $61,700,000 | $58,100,000 |
Balance_Sheet_Information_Accu
Balance Sheet Information - Accumulated Other Comprehensive Loss (Detail) (USD $) | Dec. 31, 2014 | Dec. 31, 2013 | Dec. 31, 2012 |
In Thousands, unless otherwise specified | |||
Offsetting [Abstract] | |||
Net change in pension and benefit plan liability | ($24,198) | ($10,818) | ($18,664) |
Foreign currency translation adjustments | -2,502 | -2,473 | -2,877 |
Unrealized gain on short-term investments | -89 | 13 | |
Accumulated other comprehensive loss | ($26,789) | ($13,291) | ($21,528) |
Goodwill_and_Other_Intangible_2
Goodwill and Other Intangible Assets - Schedule of Goodwill and Other Intangible Assets (Detail) (USD $) | Dec. 31, 2014 | Dec. 31, 2013 | Oct. 28, 2013 | Apr. 10, 2013 | Dec. 31, 2012 |
In Thousands, unless otherwise specified | |||||
Finite-Lived Intangible Assets [Line Items] | |||||
Cost | $2,435,865 | $2,434,963 | |||
Goodwill | 532,921 | 531,786 | 7,600 | 4,100 | 520,088 |
Cost | 2,435,865 | 2,434,963 | |||
Accumulated Amortization | -1,100,975 | -983,183 | |||
Trademarks and Trade Names [Member] | |||||
Finite-Lived Intangible Assets [Line Items] | |||||
Trademarks and tradenames | 439,719 | 440,005 | |||
Publishing Rights [Member] | |||||
Finite-Lived Intangible Assets [Line Items] | |||||
Cost | 1,180,000 | 1,180,000 | |||
Accumulated Amortization | -889,560 | -783,937 | |||
Customer Related and Other [Member] | |||||
Finite-Lived Intangible Assets [Line Items] | |||||
Cost | 283,225 | 283,172 | |||
Accumulated Amortization | ($211,415) | ($199,246) |
Goodwill_and_Other_Intangible_3
Goodwill and Other Intangible Assets - Changes in the Carrying Amount of Goodwill (Detail) (USD $) | 12 Months Ended | |||
In Thousands, unless otherwise specified | Dec. 31, 2014 | Dec. 31, 2013 | Oct. 28, 2013 | Apr. 10, 2013 |
Goodwill, Impaired, Accumulated Impairment Loss [Abstract] | ||||
Balance at beginning of period | $531,786 | $520,088 | $7,600 | $4,100 |
Goodwill | 1,974,286 | 1,962,588 | ||
Accumulated impairment losses | -1,442,500 | -1,442,500 | ||
Acquisitions | 1,135 | 11,698 | ||
Balance at end of period | $532,921 | $531,786 | $7,600 | $4,100 |
Goodwill_and_Other_Intangible_4
Goodwill and Other Intangible Assets - Additional Information (Detail) (USD $) | 12 Months Ended | ||||
Dec. 31, 2014 | Dec. 31, 2013 | Dec. 31, 2012 | Oct. 28, 2013 | Apr. 10, 2013 | |
Finite-Lived Intangible Assets [Line Items] | |||||
Goodwill | $532,921,000 | $531,786,000 | $520,088,000 | $7,600,000 | $4,100,000 |
Goodwill acquired | 1,135,000 | 11,698,000 | |||
Goodwill impairment charge | 0 | 0 | |||
Impairment charges | 1,679,000 | 9,000,000 | 8,003,000 | ||
Goodwill And Other Assets [Member] | |||||
Finite-Lived Intangible Assets [Line Items] | |||||
Impairment charges | 400,000 | 500,000 | 5,000,000 | ||
Trade Names And Other [Member] | |||||
Finite-Lived Intangible Assets [Line Items] | |||||
Impairment charges | 5,000,000 | ||||
Other Intangible Assets [Member] | |||||
Finite-Lived Intangible Assets [Line Items] | |||||
Amortization expense | $117,800,000 | $158,600,000 | $232,600,000 |
Goodwill_and_Other_Intangible_5
Goodwill and Other Intangible Assets - Estimated Aggregate Amortization Expense (Detail) (USD $) | Dec. 31, 2014 | Dec. 31, 2013 |
In Thousands, unless otherwise specified | ||
Pre-publication Costs [Member] | ||
Finite-Lived Intangible Assets [Line Items] | ||
2015 | $81,007 | |
2016 | 61,350 | |
2017 | 46,238 | |
2018 | 34,713 | |
2019 | 26,557 | |
Thereafter | 40,575 | |
Other Intangible Assets [Member] | ||
Finite-Lived Intangible Assets [Line Items] | ||
2015 | 12,346 | |
2016 | 11,201 | |
2017 | 10,080 | |
2018 | 9,053 | |
2019 | 6,488 | |
Thereafter | $22,642 |
Debt_LongTerm_Debt_Detail
Debt - Long-Term Debt (Detail) (USD $) | Dec. 31, 2014 | Dec. 31, 2013 |
In Thousands, unless otherwise specified | ||
Debt Disclosure [Abstract] | ||
Long term debt | $243,125 | $245,625 |
Less: Current portion of long-term debt | 67,500 | 2,500 |
Total long-term debt | $175,625 | $243,125 |
Debt_LongTerm_Debt_Parenthetic
Debt - Long-Term Debt (Parenthetical) (Detail) (Term Loan [Member], USD $) | 12 Months Ended |
In Thousands, unless otherwise specified | Dec. 31, 2014 |
Term Loan [Member] | |
Debt Instrument [Line Items] | |
Term loan, face amount | $250,000 |
Term loan, due date | 21-May-18 |
Debt_Additional_Information_De
Debt - Additional Information (Detail) (USD $) | 0 Months Ended | 12 Months Ended | 0 Months Ended | ||||||
Jan. 15, 2014 | 24-May-13 | Jun. 22, 2012 | Jun. 20, 2012 | Jun. 11, 2012 | Dec. 31, 2014 | Dec. 31, 2013 | Dec. 31, 2012 | 22-May-12 | |
Debt Instrument [Line Items] | |||||||||
Current portion of long-term debt | $67,500,000 | $2,500,000 | |||||||
Reduction in interest rate | 1.00% | 2.00% | |||||||
Expense relating to third party transaction fees | 1,000,000 | ||||||||
Debt instrument term | 6 years | ||||||||
Debt instrument basis spread | 1.25% | 1.50% | |||||||
Interest rate on debt facility, end of period | 5.25% | ||||||||
Loss on extinguishment of debt | 0 | -598,000 | |||||||
Senior secured credit facility | 500,000,000 | 500,000,000 | |||||||
Line of credit facility, cash received | 30,300,000 | ||||||||
Debt instrument interest rate | 6.00% | 6.25% | |||||||
Release of restricted cash | 26,500,000 | -26,495,000 | |||||||
Contractual interest not included in statement of operations | 19,200,000 | ||||||||
Financial covenants, description | We are required to meet certain restrictive financial covenants as defined under our Term Loan and Revolving Credit Facility. We have financial covenants pertaining to interest coverage, maximum leverage, and fixed charge ratios. The interest coverage ratio is now 9.0 to 1.0 for all fiscal quarters ending through maturity. The maximum leverage ratio is now 2.0 to 1.0 for fiscal quarters ending through maturity. The fixed charge ratio, which only pertains to the revolving credit facility and is only tested in limited situations, is 1.0 to 1.0 through the end of the facility. | ||||||||
Fixed charge ratio | 1 | ||||||||
Debt covenants, compliance statement | As of December 31, 2014, we were in compliance with all of our debt covenants. | ||||||||
Fiscal Quarters Ending Through Maturity [Member] | |||||||||
Debt Instrument [Line Items] | |||||||||
Interest coverage ratio | 9 | ||||||||
Maximum leverage ratio | 2 | ||||||||
Revolving Credit Facility [Member[ | |||||||||
Debt Instrument [Line Items] | |||||||||
Debt instrument term | 5 years | ||||||||
Senior secured credit facility | 250,000,000 | ||||||||
Line of credit facility, cash received | 0 | ||||||||
Term Loan [Member] | |||||||||
Debt Instrument [Line Items] | |||||||||
Debt instrument term | 6 years | ||||||||
Senior secured credit facility | 250,000,000 | 250,000,000 | |||||||
Term Loan Facility [Member] | |||||||||
Debt Instrument [Line Items] | |||||||||
Current portion of long-term debt | $65,000,000 | ||||||||
Base Rate [Member] | |||||||||
Debt Instrument [Line Items] | |||||||||
Reduction in interest rate | 1.75% | ||||||||
Debt instrument basis spread | 3.25% | ||||||||
London Interbank Offered Rate (LIBOR) [Member] | |||||||||
Debt Instrument [Line Items] | |||||||||
Reduction in interest rate | 0.25% | ||||||||
Debt instrument basis spread | 4.25% | ||||||||
London Interbank Offered Rate (LIBOR) [Member] | Term Loan [Member] | |||||||||
Debt Instrument [Line Items] | |||||||||
Debt instrument basis spread | 6.00% | ||||||||
Minimum [Member] | London Interbank Offered Rate (LIBOR) [Member] | |||||||||
Debt Instrument [Line Items] | |||||||||
Debt instrument basis spread | 1.00% | ||||||||
Minimum [Member] | London Interbank Offered Rate (LIBOR) [Member] | Term Loan [Member] | |||||||||
Debt Instrument [Line Items] | |||||||||
Debt instrument basis spread | 1.25% |
Debt_LongTerm_Debt_Repayments_
Debt - Long-Term Debt Repayments Due (Detail) (USD $) | Dec. 31, 2014 | Dec. 31, 2013 |
In Thousands, unless otherwise specified | ||
Equity Method Investments And Cost Method Investments [Abstract] | ||
2015 | $67,500 | |
2016 | 2,500 | |
2017 | 2,500 | |
2018 | 170,625 | |
2019 | 0 | |
Thereafter | 0 | |
Long term debt | $243,125 | $245,625 |
Severance_and_Other_Charges_Ad
Severance and Other Charges - Additional Information (Detail) (USD $) | 12 Months Ended | |||
In Thousands, unless otherwise specified | Dec. 31, 2014 | Dec. 31, 2013 | Dec. 31, 2012 | Dec. 31, 2011 |
Restructuring Cost and Reserve [Line Items] | ||||
Payments for severance cost and office space no longer utilized | $12,510 | $12,799 | $26,835 | |
Severance/restructuring expense | 7,300 | 10,040 | 9,375 | |
Severance costs payment period | 12 months | |||
Remaining severance costs | 10,321 | 15,531 | 18,290 | 35,750 |
Severance and other charges | 5,928 | 8,184 | ||
Severance Costs [Member] | ||||
Restructuring Cost and Reserve [Line Items] | ||||
Payments for severance cost and office space no longer utilized | 7,866 | 5,828 | 19,213 | |
Severance/restructuring expense | 5,022 | 7,801 | 5,284 | |
Remaining severance costs | 1,271 | 4,115 | 2,142 | 16,071 |
Other Accruals [Member] | ||||
Restructuring Cost and Reserve [Line Items] | ||||
Payments for severance cost and office space no longer utilized | 4,644 | 6,971 | 7,622 | |
Severance/restructuring expense | 2,278 | 2,239 | 4,091 | |
Remaining severance costs | $9,050 | $11,416 | $16,148 | $19,679 |
Severance_and_Other_Charges_Co
Severance and Other Charges - Components of Severance/Restructuring and Other Charges (Detail) (USD $) | 12 Months Ended | ||
In Thousands, unless otherwise specified | Dec. 31, 2014 | Dec. 31, 2013 | Dec. 31, 2012 |
Restructuring Cost and Reserve [Line Items] | |||
Severance/restructuring accrual, Beginning balance | $15,531 | $18,290 | $35,750 |
Severance/restructuring expense | 7,300 | 10,040 | 9,375 |
Cash payments | -12,510 | -12,799 | -26,835 |
Severance/restructuring accrual, Ending balance | 10,321 | 15,531 | 18,290 |
Severance Costs [Member] | |||
Restructuring Cost and Reserve [Line Items] | |||
Severance/restructuring accrual, Beginning balance | 4,115 | 2,142 | 16,071 |
Severance/restructuring expense | 5,022 | 7,801 | 5,284 |
Cash payments | -7,866 | -5,828 | -19,213 |
Severance/restructuring accrual, Ending balance | 1,271 | 4,115 | 2,142 |
Other Accruals [Member] | |||
Restructuring Cost and Reserve [Line Items] | |||
Severance/restructuring accrual, Beginning balance | 11,416 | 16,148 | 19,679 |
Severance/restructuring expense | 2,278 | 2,239 | 4,091 |
Cash payments | -4,644 | -6,971 | -7,622 |
Severance/restructuring accrual, Ending balance | $9,050 | $11,416 | $16,148 |
Income_Taxes_Components_of_Los
Income Taxes - Components of Loss Before Taxes by Jurisdiction (Detail) (USD $) | 12 Months Ended | ||
In Thousands, unless otherwise specified | Dec. 31, 2014 | Dec. 31, 2013 | Dec. 31, 2012 |
Schedule Of Components Of Income Loss Before Income Taxes [Line Items] | |||
Loss before taxes | ($105,249) | ($108,839) | ($93,082) |
U.S [Member] | |||
Schedule Of Components Of Income Loss Before Income Taxes [Line Items] | |||
Loss before taxes | -102,284 | -80,969 | -47,755 |
Foreign [Member] | |||
Schedule Of Components Of Income Loss Before Income Taxes [Line Items] | |||
Loss before taxes | ($2,945) | ($27,870) | ($45,327) |
Income_Taxes_Total_Income_Tax_
Income Taxes - Total Income Tax by Jurisdiction (Detail) (USD $) | 12 Months Ended | ||
In Thousands, unless otherwise specified | Dec. 31, 2014 | Dec. 31, 2013 | Dec. 31, 2012 |
Income tax expense (benefit) | |||
Income tax expense (benefit) | $6,242 | $2,347 | ($5,943) |
U.S [Member] | |||
Income tax expense (benefit) | |||
Income tax expense (benefit) | 9,632 | 1,496 | -7,045 |
Foreign [Member] | |||
Income tax expense (benefit) | |||
Income tax expense (benefit) | ($3,390) | $851 | $1,102 |
Income_Taxes_Components_of_Exp
Income Taxes - Components of Expense (Benefit) for Income Taxes Attributable to Loss from Continuing Operations (Detail) (USD $) | 12 Months Ended | ||
In Thousands, unless otherwise specified | Dec. 31, 2014 | Dec. 31, 2013 | Dec. 31, 2012 |
Current | |||
Foreign | $588 | $760 | $1,102 |
U.S.-Federal | 0 | 0 | 0 |
U.S.-State and other | 4,633 | 3,734 | 3,031 |
Total current | 5,221 | 4,494 | 4,133 |
Deferred | |||
Foreign | -3,633 | 91 | |
U.S.-Federal | 3,889 | -1,417 | -9,201 |
U.S.-State and other | 765 | -821 | -875 |
Total deferred | 899 | -3,121 | -10,076 |
Income tax expense (benefit) | $6,242 | $2,347 | ($5,943) |
Income_Taxes_Reconciliation_of
Income Taxes - Reconciliation of Income Tax Rate Computed at Statutory Tax Rate (Detail) | 12 Months Ended | ||
Dec. 31, 2014 | Dec. 31, 2013 | Dec. 31, 2012 | |
Income Tax Disclosure [Abstract] | |||
Statutory rate | -35.00% | -35.00% | -35.00% |
Permanent items | 1.00% | 2.50% | 3.70% |
UTP interest | 3.30% | ||
Transfer pricing adjustments | -0.10% | ||
Reorganization expense | 5.90% | ||
Bargain purchase gain | -11.60% | ||
Foreign rate differential | 0.10% | 6.00% | 10.30% |
State and local taxes | 1.20% | 0.30% | |
Increase in valuation allowance | 35.30% | 28.40% | 20.40% |
Effective tax rate | 5.90% | 2.20% | -6.40% |
Income_Taxes_Components_of_Net
Income Taxes - Components of Net Deferred Tax Assets and Liabilities (Detail) (USD $) | Dec. 31, 2014 | Dec. 31, 2013 |
In Thousands, unless otherwise specified | ||
Tax asset related to | ||
Net operating loss and other carryforwards | $71,565 | $40,021 |
Returns reserve/inventory expense | 61,124 | 64,264 |
Pension and postretirement benefits | 8,122 | 10,488 |
Deferred interest | 463,013 | 483,143 |
Deferred revenue | 75,577 | 109,240 |
Deferred compensation | 23,084 | 17,182 |
Other, net | 26,394 | 21,163 |
Valuation allowance | -550,660 | -527,960 |
Deferred assets | 178,219 | 217,541 |
Tax liability related to | ||
Intangible assets | -211,805 | -231,186 |
Depreciation and amortization expense | -54,201 | -73,512 |
Other, net | -269 | |
Deferred liabilities | -266,275 | -304,698 |
Net deferred tax liabilities | ($88,056) | ($87,157) |
Income_Taxes_Deferred_Tax_Asse
Income Taxes - Deferred Tax Assets and Liabilities Reflected on Consolidated Balance Sheet (Detail) (USD $) | Dec. 31, 2014 | Dec. 31, 2013 |
In Thousands, unless otherwise specified | ||
Income Tax Disclosure [Abstract] | ||
Current deferred tax assets | $20,459 | $29,842 |
Non-current deferred tax assets | 3,705 | |
Noncurrent deferred tax liability | -112,220 | -116,999 |
Net deferred tax liabilities | ($88,056) | ($87,157) |
Income_Taxes_Reconciliation_of1
Income Taxes - Reconciliation of Gross Amount of Unrecognized Tax Benefits (Detail) (USD $) | 12 Months Ended | ||
In Thousands, unless otherwise specified | Dec. 31, 2014 | Dec. 31, 2013 | Dec. 31, 2012 |
Reconciliation of Unrecognized Tax Benefits, Excluding Amounts Pertaining to Examined Tax Returns [Roll Forward] | |||
Beginning balance | $75,503 | $74,634 | $70,774 |
Reductions based on tax positions related to the prior year | -1,984 | -105 | |
Additions based on tax positions related to the current year | 3,965 | ||
Additions based on tax positions related to the current year | 3,131 | 2,853 | |
Ending balance | $78,634 | $75,503 | $74,634 |
Income_Taxes_Additional_Inform
Income Taxes - Additional Information (Detail) (USD $) | 0 Months Ended | 12 Months Ended | |||
Jan. 01, 2013 | Dec. 31, 2014 | Dec. 31, 2013 | Dec. 31, 2012 | Dec. 31, 2011 | |
Income Taxes [Line Items] | |||||
Unrecognized tax benefits | $78,634,000 | $75,503,000 | $74,634,000 | $70,774,000 | |
Unrecognized tax benefits that would impact effective tax rate if recognized | 68,500,000 | ||||
Unrecognized tax benefit disclosed to be reduced over the next twelve months | 52,100,000 | ||||
Accrued interest and penalties | 10,900,000 | 8,300,000 | |||
Interest and penalties included in provision for income taxes | 3,500,000 | 2,400,000 | |||
Cancellation of debt income | 1,300,000,000 | 10,747,000 | |||
Valuation allowance | 550,660,000 | 527,960,000 | |||
Increase in valuation allowance | 22,700,000 | 15,800,000 | |||
Unrecorded additional paid in capital net operating losses | 9,700,000 | 600,000 | |||
Federal Tax [Member] | |||||
Income Taxes [Line Items] | |||||
Loss carryforwards | 127,300,000 | ||||
Loss carryforwards, description | Expire between 2033 and 2034. | ||||
State Tax Loss And Other Carryforwards [Member] | |||||
Income Taxes [Line Items] | |||||
Loss carryforwards | 124,800,000 | ||||
Loss carryforwards, description | Expire between 2018 and 2034 | ||||
Foreign [Member] | |||||
Income Taxes [Line Items] | |||||
Loss carryforwards | 1,500,000 | ||||
Loss carryforwards, description | Expire through 2023 | ||||
Canadian Federal [Member] | |||||
Income Taxes [Line Items] | |||||
Operating loss Carry forwards | 3,300,000 | ||||
State and Local Jurisdiction [Member] | |||||
Income Taxes [Line Items] | |||||
Operating loss Carry forwards | 3,600,000 | ||||
United kingdom [Member] | |||||
Income Taxes [Line Items] | |||||
Operating loss Carry forwards | 11,100,000 | ||||
Ireland [Member] | |||||
Income Taxes [Line Items] | |||||
Operating loss Carry forwards | 27,200,000 | ||||
Employee Stock Option [Member] | |||||
Income Taxes [Line Items] | |||||
Reduction in deferred tax assets | $9,100,000 | $600,000 | |||
Minimum [Member] | |||||
Income Taxes [Line Items] | |||||
Operating Loss Carryforwards, Expiration Dates | 31-Dec-29 | ||||
Maximum [Member] | |||||
Income Taxes [Line Items] | |||||
Operating Loss Carryforwards, Expiration Dates | 31-Dec-33 |
Retirement_and_Postretirement_2
Retirement and Postretirement Benefit Plans - Additional Information (Detail) (USD $) | 12 Months Ended | 0 Months Ended | ||
Dec. 31, 2014 | Dec. 31, 2013 | Dec. 31, 2012 | 28-May-14 | |
Compensation And Retirement Disclosure [Line Items] | ||||
Defined benefit plan expected contributions | $2,000,000 | |||
Defined benefit plan qualifying age | 55 years | |||
Defined benefit plan service period | 5 years | |||
Defined benefit plan contributions by plan participants, percentage | 50.00% | |||
Contribution expense | 5,700,000 | 5,400,000 | 4,900,000 | |
Discretionary contributions | 0 | 0 | 0 | |
Maximum [Member] | ||||
Compensation And Retirement Disclosure [Line Items] | ||||
Defined benefit plan contributions by employer, percentage | 3.00% | |||
Pension Plan, Defined Benefit [Member] | ||||
Compensation And Retirement Disclosure [Line Items] | ||||
Long-term rate of return | 7.00% | 6.70% | 6.70% | |
Defined benefit plan expected contributions | 6,800,000 | |||
Reduction in accrued postretirement benefits liability due to plan change | 8,700,000 | |||
Pension Plan, Defined Benefit [Member] | Equity Securities [Member] | ||||
Compensation And Retirement Disclosure [Line Items] | ||||
Current targeted asset allocation | 30.00% | |||
Pension Plan, Defined Benefit [Member] | Fixed Income Securities [Member] | ||||
Compensation And Retirement Disclosure [Line Items] | ||||
Current targeted asset allocation | 55.00% | |||
Pension Plan, Defined Benefit [Member] | Real-estate Investments Trust Managers [Member] | ||||
Compensation And Retirement Disclosure [Line Items] | ||||
Current targeted asset allocation | 5.00% | |||
Pension Plan, Defined Benefit [Member] | Hedge Fund [Member] | ||||
Compensation And Retirement Disclosure [Line Items] | ||||
Current targeted asset allocation | 10.00% | |||
Selling, General and Administrative Expenses [Member] | ||||
Compensation And Retirement Disclosure [Line Items] | ||||
Settlement charge | $1,700,000 |
Retirement_and_Postretirement_3
Retirement and Postretirement Benefit Plans - Summary of Accumulated Benefit Obligations ("ABO"), Change in Projected Benefit Obligation ("PBO"), and Funded Status of our Plans (Detail) (USD $) | 12 Months Ended | ||
In Thousands, unless otherwise specified | Dec. 31, 2014 | Dec. 31, 2013 | Dec. 31, 2012 |
Change in PBO | |||
APBO at beginning of period | $26,001 | $29,573 | |
Service cost | -179 | -222 | |
Interest cost on PBO | 1,361 | 1,275 | |
Actuarial (gain) loss | 3,611 | -2,513 | |
Benefits paid | -3,206 | -3,197 | |
APBO at end of period | 28,537 | 26,001 | |
Change in plan assets | |||
Fair market value at beginning of period | 167,114 | ||
Company contribution | 2,615 | 2,556 | |
Benefits paid | -3,206 | -3,197 | |
Fair market value at end of period | 165,985 | 167,114 | |
Funded status | -28,537 | -26,001 | |
Pension Plan, Defined Benefit [Member] | |||
Defined Benefit Plans and Other Postretirement Benefit Plans Table Text Block [Line Items] | |||
ABO at end of period | 184,510 | 191,519 | |
Change in PBO | |||
APBO at beginning of period | 191,519 | 204,420 | |
Foreign defined benefit plan termination | -14,934 | ||
Service cost | 0 | 0 | |
Interest cost on PBO | 7,671 | 7,405 | 8,288 |
Plan settlements | -1,446 | ||
Actuarial (gain) loss | 13,338 | -9,671 | |
Benefits paid | -13,084 | -9,424 | |
Exchange rates | 235 | ||
APBO at end of period | 184,510 | 191,519 | 204,420 |
Change in plan assets | |||
Fair market value at beginning of period | 167,114 | 155,706 | |
Foreign defined benefit plan termination | -15,152 | ||
Plan settlements | -1,446 | ||
Actual return | 13,069 | 11,540 | |
Company contribution | 14,038 | 10,615 | |
Benefits paid | -13,084 | -9,424 | |
Exchange rates | 123 | ||
Fair market value at end of period | 165,985 | 167,114 | 155,706 |
Funded status | ($18,525) | ($24,405) |
Retirement_and_Postretirement_4
Retirement and Postretirement Benefit Plans - Amounts Recognized in Consolidated Balance Sheets (Detail) (USD $) | Dec. 31, 2014 | Dec. 31, 2013 |
In Thousands, unless otherwise specified | ||
Compensation and Retirement Disclosure [Abstract] | ||
Noncurrent liabilities | ($18,525) | ($24,405) |
Retirement_and_Postretirement_5
Retirement and Postretirement Benefit Plans - Additional Year-End Information for Pension Plans with ABO in Excess of Plan Assets (Detail) (USD $) | Dec. 31, 2014 | Dec. 31, 2013 |
In Thousands, unless otherwise specified | ||
Compensation and Retirement Disclosure [Abstract] | ||
PBO | $184,510 | $176,585 |
ABO | 184,510 | 176,585 |
Fair value of plan assets | $165,985 | $151,962 |
Retirement_and_Postretirement_6
Retirement and Postretirement Benefit Plans - Amounts Not Yet Reflected in Net Periodic Benefit Cost and Recognized in Accumulated Other Comprehensive Income (Detail) (USD $) | Dec. 31, 2014 | Dec. 31, 2013 | Dec. 31, 2012 |
In Thousands, unless otherwise specified | |||
Defined Benefit Plans and Other Postretirement Benefit Plans Table Text Block [Line Items] | |||
Accumulated other comprehensive income (loss) | $24,198 | $10,818 | $18,664 |
Pension Plan, Defined Benefit [Member] | |||
Defined Benefit Plans and Other Postretirement Benefit Plans Table Text Block [Line Items] | |||
Net gain (loss) | -18,143 | -9,536 | |
Accumulated other comprehensive income (loss) | -18,143 | -9,536 | |
Postretirement Benefit Costs [Member] | |||
Defined Benefit Plans and Other Postretirement Benefit Plans Table Text Block [Line Items] | |||
Net gain (loss) | -6,087 | -2,476 | |
Prior service cost | 4,876 | 6,257 | |
Accumulated other comprehensive income (loss) | ($1,211) | $3,781 |
Retirement_and_Postretirement_7
Retirement and Postretirement Benefit Plans - Weighted Average Assumptions used to Determine Benefit Obligations (Detail) (Pension Plan, Defined Benefit [Member]) | Dec. 31, 2014 | Dec. 31, 2013 |
Pension Plan, Defined Benefit [Member] | ||
Defined Benefit Plan Disclosure [Line Items] | ||
Discount rate | 3.80% | 4.60% |
Increase in future compensation | 0.00% | 0.00% |
Retirement_and_Postretirement_8
Retirement and Postretirement Benefit Plans - Net Periodic Pension Cost Components (Detail) (USD $) | 12 Months Ended | ||
In Thousands, unless otherwise specified | Dec. 31, 2014 | Dec. 31, 2013 | Dec. 31, 2012 |
Defined Benefit Plans and Other Postretirement Benefit Plans Table Text Block [Line Items] | |||
Interest cost on projected benefit obligation | $1,361 | $1,275 | |
Amortization of net (gain) loss | 1,400 | -600 | -900 |
Pension Plan, Defined Benefit [Member] | |||
Defined Benefit Plans and Other Postretirement Benefit Plans Table Text Block [Line Items] | |||
Interest cost on projected benefit obligation | 7,671 | 7,405 | 8,288 |
Expected return on plan assets | -10,122 | -10,124 | -9,047 |
Amortization of net (gain) loss | 337 | 13 | |
Net pension expense | -2,451 | -2,382 | -746 |
Loss (gain) due to settlement | 167 | 84 | |
Net cost (gain) recognized for the period | ($2,451) | ($2,215) | ($662) |
Retirement_and_Postretirement_9
Retirement and Postretirement Benefit Plans - Significant Actuarial Assumptions used to Determine Net Periodic Pension Cost (Detail) (Pension Plan, Defined Benefit [Member]) | 12 Months Ended | ||
Dec. 31, 2014 | Dec. 31, 2013 | Dec. 31, 2012 | |
Pension Plan, Defined Benefit [Member] | |||
Defined Benefit Plans and Other Postretirement Benefit Plans Table Text Block [Line Items] | |||
Discount rate | 4.60% | 3.80% | 4.40% |
Increase in future compensation | 0.00% | 0.00% | 0.00% |
Expected long-term rate of return on assets | 7.00% | 6.70% | 6.70% |
Recovered_Sheet1
Retirement and Postretirement Benefit Plans - Summary of Assets Percentage Invested by Class (Detail) | Dec. 31, 2014 | Dec. 31, 2013 |
Defined Benefit Plans and Other Postretirement Benefit Plans Table Text Block [Line Items] | ||
Percentage of assets invested in each asset class | 100.00% | 100.00% |
Equity Securities [Member] | ||
Defined Benefit Plans and Other Postretirement Benefit Plans Table Text Block [Line Items] | ||
Percentage of assets invested in each asset class | 29.70% | 37.80% |
Fixed Income Securities [Member] | ||
Defined Benefit Plans and Other Postretirement Benefit Plans Table Text Block [Line Items] | ||
Percentage of assets invested in each asset class | 55.10% | 43.70% |
Real Estate [Member] | ||
Defined Benefit Plans and Other Postretirement Benefit Plans Table Text Block [Line Items] | ||
Percentage of assets invested in each asset class | 5.10% | 3.90% |
Annuity Policies [Member] | ||
Defined Benefit Plans and Other Postretirement Benefit Plans Table Text Block [Line Items] | ||
Percentage of assets invested in each asset class | 8.90% | |
Other [Member] | ||
Defined Benefit Plans and Other Postretirement Benefit Plans Table Text Block [Line Items] | ||
Percentage of assets invested in each asset class | 10.10% | 5.70% |
Recovered_Sheet2
Retirement and Postretirement Benefit Plans - Summary of Fair Value of Pension Plan Assets by Asset Category (Detail) (USD $) | Dec. 31, 2014 | Dec. 31, 2013 |
In Thousands, unless otherwise specified | ||
Defined Benefit Plans and Other Postretirement Benefit Plans Table Text Block [Line Items] | ||
Defined benefit plan asset | $165,985 | $167,114 |
Cash and Cash Equivalents [Member] | ||
Defined Benefit Plans and Other Postretirement Benefit Plans Table Text Block [Line Items] | ||
Defined benefit plan asset | 1,436 | 1,619 |
U.S. Equity [Member] | ||
Defined Benefit Plans and Other Postretirement Benefit Plans Table Text Block [Line Items] | ||
Defined benefit plan asset | 28,630 | 41,544 |
Non U.S. Equity [Member] | ||
Defined Benefit Plans and Other Postretirement Benefit Plans Table Text Block [Line Items] | ||
Defined benefit plan asset | 14,844 | 20,156 |
Emerging Markets Equity [Member] | ||
Defined Benefit Plans and Other Postretirement Benefit Plans Table Text Block [Line Items] | ||
Defined benefit plan asset | 5,763 | 1,550 |
Government Bonds [Member] | ||
Defined Benefit Plans and Other Postretirement Benefit Plans Table Text Block [Line Items] | ||
Defined benefit plan asset | 22,430 | 20,230 |
Corporate Bonds [Member] | ||
Defined Benefit Plans and Other Postretirement Benefit Plans Table Text Block [Line Items] | ||
Defined benefit plan asset | 47,774 | 38,050 |
Mortgage Backed Securities [Member] | ||
Defined Benefit Plans and Other Postretirement Benefit Plans Table Text Block [Line Items] | ||
Defined benefit plan asset | 9,742 | 10,750 |
Asset-backed Securities [Member] | ||
Defined Benefit Plans and Other Postretirement Benefit Plans Table Text Block [Line Items] | ||
Defined benefit plan asset | 1,534 | 700 |
Commercial Mortgage-Backed Securities [Member] | ||
Defined Benefit Plans and Other Postretirement Benefit Plans Table Text Block [Line Items] | ||
Defined benefit plan asset | 2,291 | 513 |
International Fixed Income [Member] | ||
Defined Benefit Plans and Other Postretirement Benefit Plans Table Text Block [Line Items] | ||
Defined benefit plan asset | 6,610 | 2,767 |
Real Estate [Member] | ||
Defined Benefit Plans and Other Postretirement Benefit Plans Table Text Block [Line Items] | ||
Defined benefit plan asset | 8,472 | 6,485 |
Hedge Fund [Member] | ||
Defined Benefit Plans and Other Postretirement Benefit Plans Table Text Block [Line Items] | ||
Defined benefit plan asset | 15,283 | 7,017 |
Other [Member] | ||
Defined Benefit Plans and Other Postretirement Benefit Plans Table Text Block [Line Items] | ||
Defined benefit plan asset | 1,176 | 801 |
Annuity Policies [Member] | ||
Defined Benefit Plans and Other Postretirement Benefit Plans Table Text Block [Line Items] | ||
Defined benefit plan asset | 14,932 | |
Quoted Prices in Active Markets for Identical Assets (Level 1) [Member] | ||
Defined Benefit Plans and Other Postretirement Benefit Plans Table Text Block [Line Items] | ||
Defined benefit plan asset | 1,436 | 1,619 |
Quoted Prices in Active Markets for Identical Assets (Level 1) [Member] | Cash and Cash Equivalents [Member] | ||
Defined Benefit Plans and Other Postretirement Benefit Plans Table Text Block [Line Items] | ||
Defined benefit plan asset | 1,436 | 1,619 |
Significant Other Observable Inputs (Level 2) [Member] | ||
Defined Benefit Plans and Other Postretirement Benefit Plans Table Text Block [Line Items] | ||
Defined benefit plan asset | 164,549 | 165,495 |
Significant Other Observable Inputs (Level 2) [Member] | U.S. Equity [Member] | ||
Defined Benefit Plans and Other Postretirement Benefit Plans Table Text Block [Line Items] | ||
Defined benefit plan asset | 28,630 | 41,544 |
Significant Other Observable Inputs (Level 2) [Member] | Non U.S. Equity [Member] | ||
Defined Benefit Plans and Other Postretirement Benefit Plans Table Text Block [Line Items] | ||
Defined benefit plan asset | 14,844 | 20,156 |
Significant Other Observable Inputs (Level 2) [Member] | Emerging Markets Equity [Member] | ||
Defined Benefit Plans and Other Postretirement Benefit Plans Table Text Block [Line Items] | ||
Defined benefit plan asset | 5,763 | 1,550 |
Significant Other Observable Inputs (Level 2) [Member] | Government Bonds [Member] | ||
Defined Benefit Plans and Other Postretirement Benefit Plans Table Text Block [Line Items] | ||
Defined benefit plan asset | 22,430 | 20,230 |
Significant Other Observable Inputs (Level 2) [Member] | Corporate Bonds [Member] | ||
Defined Benefit Plans and Other Postretirement Benefit Plans Table Text Block [Line Items] | ||
Defined benefit plan asset | 47,774 | 38,050 |
Significant Other Observable Inputs (Level 2) [Member] | Mortgage Backed Securities [Member] | ||
Defined Benefit Plans and Other Postretirement Benefit Plans Table Text Block [Line Items] | ||
Defined benefit plan asset | 9,742 | 10,750 |
Significant Other Observable Inputs (Level 2) [Member] | Asset-backed Securities [Member] | ||
Defined Benefit Plans and Other Postretirement Benefit Plans Table Text Block [Line Items] | ||
Defined benefit plan asset | 1,534 | 700 |
Significant Other Observable Inputs (Level 2) [Member] | Commercial Mortgage-Backed Securities [Member] | ||
Defined Benefit Plans and Other Postretirement Benefit Plans Table Text Block [Line Items] | ||
Defined benefit plan asset | 2,291 | 513 |
Significant Other Observable Inputs (Level 2) [Member] | International Fixed Income [Member] | ||
Defined Benefit Plans and Other Postretirement Benefit Plans Table Text Block [Line Items] | ||
Defined benefit plan asset | 6,610 | 2,767 |
Significant Other Observable Inputs (Level 2) [Member] | Real Estate [Member] | ||
Defined Benefit Plans and Other Postretirement Benefit Plans Table Text Block [Line Items] | ||
Defined benefit plan asset | 8,472 | 6,485 |
Significant Other Observable Inputs (Level 2) [Member] | Hedge Fund [Member] | ||
Defined Benefit Plans and Other Postretirement Benefit Plans Table Text Block [Line Items] | ||
Defined benefit plan asset | 15,283 | 7,017 |
Significant Other Observable Inputs (Level 2) [Member] | Other [Member] | ||
Defined Benefit Plans and Other Postretirement Benefit Plans Table Text Block [Line Items] | ||
Defined benefit plan asset | 1,176 | 801 |
Significant Other Observable Inputs (Level 2) [Member] | Annuity Policies [Member] | ||
Defined Benefit Plans and Other Postretirement Benefit Plans Table Text Block [Line Items] | ||
Defined benefit plan asset | $14,932 |
Recovered_Sheet3
Retirement and Postretirement Benefit Plans - Estimated Future Benefit Payments (Detail) (Pension Plan, Defined Benefit [Member], USD $) | Dec. 31, 2014 |
In Thousands, unless otherwise specified | |
Pension Plan, Defined Benefit [Member] | |
Defined Benefit Plans and Other Postretirement Benefit Plans Table Text Block [Line Items] | |
2015 | $17,225 |
2016 | 17,258 |
2017 | 18,061 |
2018 | 17,969 |
2019 | 9,901 |
2020-2024 | $48,154 |
Recovered_Sheet4
Retirement and Postretirement Benefit Plans - Summary of Accumulated Postretirement Benefit Obligation Changes in Plan Assets and Funded Status of Plan (Detail) (USD $) | 12 Months Ended | |
In Thousands, unless otherwise specified | Dec. 31, 2014 | Dec. 31, 2013 |
Defined Benefit Plans and Other Postretirement Benefit Plans Disclosures [Abstract] | ||
APBO at beginning of period | $26,001 | $29,573 |
Service cost (benefits earned during the period) | 179 | 222 |
Interest cost on APBO | 1,361 | 1,275 |
Employee contributions | 591 | 641 |
Actuarial (gain) loss | 3,611 | -2,513 |
Benefits paid | -3,206 | -3,197 |
APBO at end of period | 28,537 | 26,001 |
Change in plan assets | ||
Fair market value at beginning of period | 167,114 | |
Company contributions | 2,615 | 2,556 |
Employee contributions | 591 | 641 |
Benefits paid | -3,206 | -3,197 |
Fair market value at end of period | 165,985 | 167,114 |
Funded status | ($28,537) | ($26,001) |
Recovered_Sheet5
Retirement and Postretirement Benefit Plans - Summary of Accrued Postretirement Benefits (Detail) (USD $) | Dec. 31, 2014 | Dec. 31, 2013 |
In Thousands, unless otherwise specified | ||
Defined Benefit Plans and Other Postretirement Benefit Plans Disclosures [Abstract] | ||
Current liabilities | ($2,037) | ($2,141) |
Noncurrent liabilities | -26,500 | -23,860 |
Net amount recognized | ($28,537) | ($26,001) |
Recovered_Sheet6
Retirement and Postretirement Benefit Plans - Weighted Average Actuarial Assumptions Used to Determine APBO (Detail) (Accumulated Postretirement Benefit Obligation [Member]) | 12 Months Ended | |
Dec. 31, 2014 | Dec. 31, 2013 | |
Accumulated Postretirement Benefit Obligation [Member] | ||
Schedule Of Defined Benefit Plans Actuarial Assumptions Used In Calculating Net Benefit Obligations [Line Items] | ||
Discount rate | 3.90% | 4.70% |
Health care cost trend rate assumed for next year | 6.90% | 7.10% |
Rate to which the cost trend rate is assumed to decline (ultimate trend rate) | 4.50% | 4.50% |
Year that the rate reaches the ultimate trend rate | 2027 | 2027 |
Recovered_Sheet7
Retirement and Postretirement Benefit Plans - Net Periodic Benefit Cost Components (Detail) (USD $) | 12 Months Ended | ||
In Thousands, unless otherwise specified | Dec. 31, 2014 | Dec. 31, 2013 | Dec. 31, 2012 |
Defined Benefit Plans and Other Postretirement Benefit Plans Table Text Block [Line Items] | |||
Service cost | $179 | $222 | |
Interest cost on APBO | 1,361 | 1,275 | |
Amortization of net (gain) loss | 1,400 | -600 | -900 |
Other Postretirement Benefit Plan, Defined Benefit [Member] | |||
Defined Benefit Plans and Other Postretirement Benefit Plans Table Text Block [Line Items] | |||
Service cost | 179 | 222 | 250 |
Interest cost on APBO | 1,183 | 1,095 | 1,269 |
Amortization of unrecognized prior service cost | -1,381 | -1,381 | -1,035 |
Amortization of net (gain) loss | 309 | ||
Net cost (gain) recognized for the period | ($19) | $245 | $484 |
Recovered_Sheet8
Retirement and Postretirement Benefit Plans - Significant Actuarial Assumptions Used to Determine Postretirement Benefit Cost (Detail) (Other Postretirement Benefit Plan, Defined Benefit [Member]) | 12 Months Ended | ||
Dec. 31, 2014 | Dec. 31, 2013 | Dec. 31, 2012 | |
Other Postretirement Benefit Plan, Defined Benefit [Member] | |||
Defined Benefit Plans and Other Postretirement Benefit Plans Table Text Block [Line Items] | |||
Discount rate | 4.70% | 3.80% | 4.50% |
Health care cost trend rate assumed for next year | 7.10% | 7.40% | 7.60% |
Rate to which the cost trend rate is assumed to decline (ultimate trend rate) | 4.50% | 4.50% | 4.50% |
Year that the rate reaches the ultimate trend rate | 2027 | 2027 | 2027 |
Recovered_Sheet9
Retirement and Postretirement Benefit Plans - One Percentage Point Changes in Assumed Health Care Cost (Detail) (USD $) | 12 Months Ended | |
In Thousands, unless otherwise specified | Dec. 31, 2014 | Dec. 31, 2013 |
Defined Benefit Plans and Other Postretirement Benefit Plans Disclosures [Abstract] | ||
Effect on total of service and interest cost components | $12 | $12 |
Effect on postretirement benefit obligation | 246 | 298 |
Effect on total of service and interest cost components | -11 | -11 |
Effect on postretirement benefit obligation | ($223) | ($190) |
Recovered_Sheet10
Retirement and Postretirement Benefit Plans - Summary of Change in Other Comprehensive Income (Detail) (USD $) | 12 Months Ended |
In Thousands, unless otherwise specified | Dec. 31, 2014 |
Defined Benefit Plan Disclosure [Line Items] | |
Net loss arising during the period | ($13,981) |
Amortization of prior service credit | -1,381 |
Total accumulated other comprehensive loss recognized during the period | -15,362 |
Pension Plan, Defined Benefit [Member] | |
Defined Benefit Plan Disclosure [Line Items] | |
Net loss arising during the period | -10,370 |
Total accumulated other comprehensive loss recognized during the period | -10,370 |
Other Postretirement Benefit Plan, Defined Benefit [Member] | |
Defined Benefit Plan Disclosure [Line Items] | |
Net loss arising during the period | -3,611 |
Amortization of prior service credit | -1,381 |
Total accumulated other comprehensive loss recognized during the period | ($4,992) |
Recovered_Sheet11
Retirement and Postretirement Benefit Plans - Summary of Estimated Amounts Amortized from Accumulated Other Comprehensive Income (Loss) Over Next Fiscal Year (Detail) (USD $) | 12 Months Ended |
In Thousands, unless otherwise specified | Dec. 31, 2014 |
Pension Plan, Defined Benefit [Member] | |
Defined Benefit Plan Disclosure [Line Items] | |
Net gain (loss) | ($331) |
Defined benefit plan, amount to be amortized from accumulated other comprehensive income (loss) next fiscal year, total | -331 |
Other Postretirement Benefit Plan, Defined Benefit [Member] | |
Defined Benefit Plan Disclosure [Line Items] | |
Prior service credit (cost) | 1,381 |
Net gain (loss) | -220 |
Defined benefit plan, amount to be amortized from accumulated other comprehensive income (loss) next fiscal year, total | $1,161 |
Recovered_Sheet12
Retirement and Postretirement Benefit Plans - Expected Future Benefit Payments (Detail) (Other Postretirement Benefit Plan, Defined Benefit [Member], USD $) | Dec. 31, 2014 |
In Thousands, unless otherwise specified | |
Other Postretirement Benefit Plan, Defined Benefit [Member] | |
Defined Benefit Plans and Other Postretirement Benefit Plans Table Text Block [Line Items] | |
2015 | $2,037 |
2016 | 1,951 |
2017 | 1,925 |
2018 | 1,858 |
2019 | 1,844 |
2020-2024 | $8,918 |
StockBased_Compensation_Additi
Stock-Based Compensation - Additional Information (Detail) (USD $) | 12 Months Ended | |||
Dec. 31, 2014 | Dec. 31, 2013 | Dec. 31, 2012 | Jun. 22, 2012 | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||
Share based compensation, expire period | 7 years | |||
Share-based compensation expense | $11,376,000 | $9,524,000 | $6,254,000 | |
Intrinsic value of options outstanding | 81,000,000 | 53,000,000 | 0 | |
Intrinsic value of options exercisable | 35,100,000 | 14,100,000 | 0 | |
Unrecognized compensation expense | 13,500,000 | |||
Unrecognized compensation expense, recognition period | 2 years | |||
Weighted average grant date fair value, options granted | $4.18 | $2.82 | $2.76 | |
Management Incentive Plan [Member] | ||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||
Number of shares authorized for issuance | 16,374,270 | |||
Number of shares reserved for future issuance | 3,217,734 | |||
Selling, General and Administrative Expenses [Member] | ||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||
Share-based compensation expense | 11,400,000 | 9,500,000 | 4,300,000 | |
Reorganization Items, Net [Member] | ||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||
Share-based compensation expense | $2,000,000 | |||
Minimum [Member] | ||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||
Share based compensation, vesting terms | 1 year | |||
Maximum [Member] | ||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||
Share based compensation, vesting terms | 4 years |
StockBased_Compensation_Summar
Stock-Based Compensation - Summary of Option Activity For HMH Employees (Detail) (USD $) | 12 Months Ended | |
Dec. 31, 2014 | Dec. 31, 2013 | |
Disclosure of Compensation Related Costs, Share-based Payments [Abstract] | ||
Options Exercisable at end of year | 4,357,248 | |
Number of Shares | ||
Outstanding at beginning of period | 12,542,118 | 9,904,562 |
Granted | 943,600 | 3,632,012 |
Exercised | -1,876,566 | |
Forfeited | -641,000 | -994,456 |
Outstanding at end of period | 10,968,152 | 12,542,118 |
Weighted Average Exercise Price | ||
Outstanding at beginning of period | $12.74 | $12.50 |
Granted | $19.86 | $13.32 |
Exercised | $12.65 | |
Forfeited | $13.31 | $12.51 |
Outstanding at end of period | $13.33 | $12.74 |
Options Exercisable at end of year | $12.66 |
StockBased_Compensation_Fair_V
Stock-Based Compensation - Fair Value of Each Option Granted was Estimated on Grant Date using Black-Scholes Valuation Model (Detail) | 12 Months Ended | ||
Dec. 31, 2014 | Dec. 31, 2013 | Dec. 31, 2012 | |
Disclosure of Compensation Related Costs, Share-based Payments [Abstract] | |||
Expected term (years) | 4 years 9 months | 4 years 9 months | 4 years |
Expected dividend yield | 0.00% | 0.00% | 0.00% |
Expected volatility, minimum | 20.40% | 21.42% | 24.21% |
Expected volatility, maximum | 22.63% | 24.55% | 26.54% |
Risk-free interest rate, minimum | 1.49% | 0.75% | 0.67% |
Risk-free interest rate, maximum | 1.82% | 1.71% | 0.76% |
StockBased_Compensation_Summar1
Stock-Based Compensation - Summary of Stock Options Outstanding and Exercisable Under Plan (Detail) (USD $) | 12 Months Ended |
Dec. 31, 2014 | |
$12.50 [Member] | |
Share-based Compensation, Shares Authorized under Stock Option Plans, Exercise Price Range [Line Items] | |
Options Outstanding, Range of Exercise Price, Maximum | $12.50 |
Options Outstanding at December 31, 2014 | 8,193,586 |
Option Outstanding, Weighted Average Remaining Contractual life | 4 years 7 months 6 days |
Options Outstanding, Weighted Average Exercise Price | $12.50 |
Options Exercisable at December 31, 2014 | 4,017,380 |
Options Exercisable, Weighted Average Exercise Price | $12.50 |
$13.48 [Member] | |
Share-based Compensation, Shares Authorized under Stock Option Plans, Exercise Price Range [Line Items] | |
Options Outstanding, Range of Exercise Price, Maximum | $13.48 |
Options Outstanding at December 31, 2014 | 1,666,966 |
Option Outstanding, Weighted Average Remaining Contractual life | 5 years 6 months |
Options Outstanding, Weighted Average Exercise Price | $13.48 |
Options Exercisable at December 31, 2014 | 236,868 |
Options Exercisable, Weighted Average Exercise Price | $13.48 |
$14.78 - $17.84 [Member] | |
Share-based Compensation, Shares Authorized under Stock Option Plans, Exercise Price Range [Line Items] | |
Options Outstanding, Range of Exercise Price,Minimum | $14.78 |
Options Outstanding, Range of Exercise Price, Maximum | $17.84 |
Options Outstanding at December 31, 2014 | 324,000 |
Option Outstanding, Weighted Average Remaining Contractual life | 6 years 4 months 24 days |
Options Outstanding, Weighted Average Exercise Price | $16.67 |
Options Exercisable at December 31, 2014 | 71,000 |
Options Exercisable, Weighted Average Exercise Price | $15.60 |
$18.28 [Member] | |
Share-based Compensation, Shares Authorized under Stock Option Plans, Exercise Price Range [Line Items] | |
Options Outstanding, Range of Exercise Price, Maximum | $18.28 |
Options Outstanding at December 31, 2014 | 6,600 |
Option Outstanding, Weighted Average Remaining Contractual life | 6 years 4 months 24 days |
Options Outstanding, Weighted Average Exercise Price | $18.28 |
$18.51 [Member] | |
Share-based Compensation, Shares Authorized under Stock Option Plans, Exercise Price Range [Line Items] | |
Options Outstanding, Range of Exercise Price, Maximum | $18.51 |
Options Outstanding at December 31, 2014 | 40,000 |
Option Outstanding, Weighted Average Remaining Contractual life | 6 years 4 months 24 days |
Options Outstanding, Weighted Average Exercise Price | $18.51 |
$18.80 [Member] | |
Share-based Compensation, Shares Authorized under Stock Option Plans, Exercise Price Range [Line Items] | |
Options Outstanding, Range of Exercise Price, Maximum | $18.80 |
Options Outstanding at December 31, 2014 | 20,000 |
Option Outstanding, Weighted Average Remaining Contractual life | 6 years 8 months 12 days |
Options Outstanding, Weighted Average Exercise Price | $18.80 |
$19.24 [Member] | |
Share-based Compensation, Shares Authorized under Stock Option Plans, Exercise Price Range [Line Items] | |
Options Outstanding, Range of Exercise Price, Maximum | $19.24 |
Options Outstanding at December 31, 2014 | 10,000 |
Option Outstanding, Weighted Average Remaining Contractual life | 6 years |
Options Outstanding, Weighted Average Exercise Price | $19.24 |
$19.89 [Member] | |
Share-based Compensation, Shares Authorized under Stock Option Plans, Exercise Price Range [Line Items] | |
Options Outstanding, Range of Exercise Price, Maximum | $19.89 |
Options Outstanding at December 31, 2014 | 32,000 |
Option Outstanding, Weighted Average Remaining Contractual life | 9 years 2 months 12 days |
Options Outstanding, Weighted Average Exercise Price | $19.89 |
Options Exercisable at December 31, 2014 | 32,000 |
Options Exercisable, Weighted Average Exercise Price | $19.89 |
$20.35 [Member] | |
Share-based Compensation, Shares Authorized under Stock Option Plans, Exercise Price Range [Line Items] | |
Options Outstanding, Range of Exercise Price, Maximum | $20.35 |
Options Outstanding at December 31, 2014 | 50,000 |
Option Outstanding, Weighted Average Remaining Contractual life | 6 years 3 months 18 days |
Options Outstanding, Weighted Average Exercise Price | $20.35 |
$20.49 [Member] | |
Share-based Compensation, Shares Authorized under Stock Option Plans, Exercise Price Range [Line Items] | |
Options Outstanding, Range of Exercise Price, Maximum | $20.49 |
Options Outstanding at December 31, 2014 | 625,000 |
Option Outstanding, Weighted Average Remaining Contractual life | 6 years 10 months 24 days |
Options Outstanding, Weighted Average Exercise Price | $20.49 |
$12.50 - $20.49 [Member] | |
Share-based Compensation, Shares Authorized under Stock Option Plans, Exercise Price Range [Line Items] | |
Options Outstanding, Range of Exercise Price,Minimum | $12.50 |
Options Outstanding, Range of Exercise Price, Maximum | $20.49 |
Options Outstanding at December 31, 2014 | 10,968,152 |
Option Outstanding, Weighted Average Remaining Contractual life | 4 years 10 months 24 days |
Options Outstanding, Weighted Average Exercise Price | $13.33 |
Options Exercisable at December 31, 2014 | 4,357,248 |
Options Exercisable, Weighted Average Exercise Price | $12.66 |
StockBased_Compensation_Summar2
Stock-Based Compensation - Summary of Restricted Stock Activity for Grants to Certain Executive Employees and Independent Members of Board of Directors (Detail) (USD $) | 12 Months Ended | |
Dec. 31, 2014 | Dec. 31, 2013 | |
Number of Units | ||
Outstanding at beginning of the year | 221,802 | 44,400 |
Granted | 86,239 | 221,802 |
Vested | -135,136 | -44,400 |
Forfeited | -1,040 | |
Outstanding at end of period | 171,865 | 221,802 |
Weighted-Average Grant Date Fair Value per Share | ||
Outstanding at beginning of the year | $18.82 | $12.50 |
Granted | $13.12 | $14.11 |
Vested | $19.24 | $12.50 |
Cancelled | $14.11 | |
Outstanding at end of period | $17.22 | $18.82 |
Fair_Value_Measurements_Summar
Fair Value Measurements - Summary of Financial Assets and Liabilities Measured at Fair Value on Recurring Basis (Detail) (USD $) | Dec. 31, 2014 | Dec. 31, 2013 |
In Thousands, unless otherwise specified | ||
Financial assets | ||
Financial assets | $725,939 | $370,974 |
Financial liabilities | ||
Financial liabilities | 1,370 | |
Money Market Funds [Member] | ||
Financial assets | ||
Financial assets | 438,907 | 259,031 |
U.S. Treasury Securities [Member] | ||
Financial assets | ||
Financial assets | 93,004 | 57,076 |
U.S. Government and Agency Securities [Member] | ||
Financial assets | ||
Financial assets | 194,028 | 54,645 |
Foreign Exchange Derivatives [Member] | ||
Financial assets | ||
Financial assets | 222 | |
Foreign Exchange Derivatives [Member] | ||
Financial liabilities | ||
Financial liabilities | 1,370 | |
Quoted Prices in Active Markets for Identical Assets (Level 1) [Member] | ||
Financial assets | ||
Financial assets | 531,911 | 316,107 |
Quoted Prices in Active Markets for Identical Assets (Level 1) [Member] | Money Market Funds [Member] | ||
Financial assets | ||
Financial assets | 438,907 | 259,031 |
Quoted Prices in Active Markets for Identical Assets (Level 1) [Member] | U.S. Treasury Securities [Member] | ||
Financial assets | ||
Financial assets | 93,004 | 57,076 |
Significant Other Observable Inputs (Level 2) [Member] | ||
Financial assets | ||
Financial assets | 194,028 | 54,867 |
Financial liabilities | ||
Financial liabilities | 1,370 | |
Significant Other Observable Inputs (Level 2) [Member] | U.S. Government and Agency Securities [Member] | ||
Financial assets | ||
Financial assets | 194,028 | 54,645 |
Significant Other Observable Inputs (Level 2) [Member] | Foreign Exchange Derivatives [Member] | ||
Financial assets | ||
Financial assets | 222 | |
Significant Other Observable Inputs (Level 2) [Member] | Foreign Exchange Derivatives [Member] | ||
Financial liabilities | ||
Financial liabilities | $1,370 |
Fair_Value_Measurements_Additi
Fair Value Measurements - Additional Information (Detail) (USD $) | 12 Months Ended | |
Dec. 31, 2014 | Dec. 31, 2013 | |
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Financial assets | $725,939,000 | $370,974,000 |
Goodwill impairment | 0 | 0 |
Maximum [Member] | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Fair value of counterparty default exposure | 1,000,000 | 1,000,000 |
Foreign Exchange Forward and Option Contracts [Member] | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Aggregate notional amount of derivative instruments | 18,700,000 | 24,100,000 |
Other Intangible Assets [Member] | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Impairment of intangible assets | 400,000 | 500,000 |
Money Market Funds [Member] | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Financial assets | 438,907,000 | 259,031,000 |
Software Development Costs [Member] | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Impairment of intangible assets | 0 | 7,400,000 |
Pre-publication Costs [Member] | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Impairment of intangible assets | 0 | 1,100,000 |
Quoted Prices in Active Markets for Identical Assets (Level 1) [Member] | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Financial assets | 531,911,000 | 316,107,000 |
Quoted Prices in Active Markets for Identical Assets (Level 1) [Member] | Money Market Funds [Member] | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Financial assets | 438,907,000 | 259,031,000 |
Significant Other Observable Inputs (Level 2) [Member] | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Financial assets | 194,028,000 | 54,867,000 |
Significant Other Observable Inputs (Level 2) [Member] | Bank Time Deposits [Member] | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Financial assets | $17,700,000 | $54,600,000 |
Fair_Value_Measurements_Summar1
Fair Value Measurements - Summary of Nonfinancial Assets and Liabilities Measured at Fair Value on Nonrecurring Basis (Detail) (USD $) | 12 Months Ended | ||
In Thousands, unless otherwise specified | Dec. 31, 2014 | Dec. 31, 2013 | Dec. 31, 2012 |
Nonfinancial assets | |||
Nonfinancial assets, Total | $3,800 | $4,200 | |
Total Impairment | 1,679 | 9,000 | 8,003 |
Nonfinancial liabilities | |||
Nonfinancial liabilities, Total | 1,881 | ||
Contingent Consideration Liability Associated with Acquisitions [Member] | |||
Nonfinancial liabilities | |||
Nonfinancial liabilities, Total | 1,881 | ||
Significant Unobservable Inputs (Level 3) [Member] | |||
Nonfinancial assets | |||
Nonfinancial assets, Total | 3,800 | 4,200 | |
Nonfinancial liabilities | |||
Nonfinancial liabilities, Total | 1,881 | ||
Significant Unobservable Inputs (Level 3) [Member] | Contingent Consideration Liability Associated with Acquisitions [Member] | |||
Nonfinancial liabilities | |||
Nonfinancial liabilities, Total | 1,881 | ||
Preferred Stock [Member] | |||
Nonfinancial assets | |||
Total Impairment | 1,279 | ||
Other Intangible Assets [Member] | |||
Nonfinancial assets | |||
Nonfinancial assets, Total | 3,800 | 4,200 | |
Total Impairment | 400 | 500 | |
Other Intangible Assets [Member] | Significant Unobservable Inputs (Level 3) [Member] | |||
Nonfinancial assets | |||
Nonfinancial assets, Total | 3,800 | 4,200 | |
Property, Plant, and Equipment [Member] | |||
Nonfinancial assets | |||
Total Impairment | 7,439 | ||
Pre-publication Costs [Member] | |||
Nonfinancial assets | |||
Total Impairment | $1,061 |
Fair_Value_Measurements_Summar2
Fair Value Measurements - Summary of Changes in Fair Value of Level 3 Liabilities Measured on Recurring Basis (Detail) (USD $) | 12 Months Ended | |
In Thousands, unless otherwise specified | Dec. 31, 2014 | Dec. 31, 2013 |
Fair Value, Liabilities Measured on Recurring Basis, Unobservable Input Reconciliation [Line Items] | ||
Beginning Balance | $5,055 | |
Payments of contingent consideration liability | -1,575 | |
Ending Balance | 1,881 | |
Selling, General and Administrative Expenses [Member] | ||
Fair Value, Liabilities Measured on Recurring Basis, Unobservable Input Reconciliation [Line Items] | ||
Change in fair value of contingent consideration liability | -2,000 | -1,781 |
Interest Expense [Member] | ||
Fair Value, Liabilities Measured on Recurring Basis, Unobservable Input Reconciliation [Line Items] | ||
Change in fair value of contingent consideration liability | $119 | $182 |
Fair_Value_Measurements_Summar3
Fair Value Measurements - Summary of Carrying Amounts and Estimated Fair Market Values of Debt (Detail) (USD $) | Dec. 31, 2014 | Dec. 31, 2013 |
In Thousands, unless otherwise specified | ||
Schedule Of Carrying Values And Estimated Fair Values Of Debt Instruments [Line Items] | ||
Debt, carrying value | $243,125 | $245,625 |
Term Loan [Member] | ||
Schedule Of Carrying Values And Estimated Fair Values Of Debt Instruments [Line Items] | ||
Debt, carrying value | 243,125 | 245,625 |
Debt, estimated fair value | $242,517 | $247,774 |
Fair_Value_Measurements_Summar4
Fair Value Measurements - Summary of Carrying Amounts and Estimated Fair Market Values of Debt (Parenthetical) (Detail) (Term Loan [Member], USD $) | Dec. 31, 2014 |
In Thousands, unless otherwise specified | |
Term Loan [Member] | |
Schedule Of Carrying Values And Estimated Fair Values Of Debt Instruments [Line Items] | |
Debt $250,000 term loan | $250,000 |
Commitments_and_Contingencies_1
Commitments and Contingencies - Future Minimum Rental Commitments Under Noncancelable Leases (Detail) (USD $) | Dec. 31, 2014 |
In Thousands, unless otherwise specified | |
Commitments and Contingencies Disclosure [Abstract] | |
2015 | $42,547 |
2016 | 36,883 |
2017 | 18,949 |
2018 | 14,786 |
2019 | 11,997 |
Thereafter | 33,600 |
Total minimum lease payments | 158,762 |
Total future minimal rentals under subleases | $26,239 |
Commitments_and_Contingencies_2
Commitments and Contingencies - Additional Information (Detail) (USD $) | 12 Months Ended | ||
Dec. 31, 2014 | Dec. 31, 2013 | Dec. 31, 2012 | |
Loss Contingencies [Line Items] | |||
Rent expense, net of sublease income | $26,800,000 | $33,900,000 | $38,000,000 |
Rent expense, additional charges | 2,300,000 | 2,200,000 | 4,100,000 |
Performance related surety bonds for which the Company is contingently liable | 11,300,000 | 23,000,000 | |
Aggregate letter of credit | 20,200,000 | 19,700,000 | |
Letter of credit backed by performance related surety bonds | 2,400,000 | 2,400,000 | |
Indemnification liabilities | 0 | 0 | |
Concentration Risk, Amount | 255,669,000 | 318,101,000 | |
Payable to customers | 4,600,000 | ||
Customer Concentration Risk [Member] | |||
Loss Contingencies [Line Items] | |||
Concentration Risk, Number of customers | 2 | ||
Concentration Risk, Amount | $104,800,000 | ||
Customer Concentration Risk [Member] | Individual [Member] | |||
Loss Contingencies [Line Items] | |||
Concentration Risk, Number of customers | 0 | ||
Accounts Receivable [Member] | Customer Concentration Risk [Member] | |||
Loss Contingencies [Line Items] | |||
Concentration Risk, percentage | 32.90% |
Related_Party_Transactions_Add
Related Party Transactions - Additional Information (Detail) (USD $) | 12 Months Ended | |||
Dec. 31, 2014 | Dec. 31, 2012 | Jun. 22, 2012 | 21-May-12 | |
Related Party Transaction [Line Items] | ||||
Gain attributable to extinguishment of debt | $1,172,156,000 | |||
Web-design services expenses | 400,000 | |||
Capital in Excess of Par Value [Member] | ||||
Related Party Transaction [Line Items] | ||||
Gain attributable to extinguishment of debt | $1,010,300 | $1,010,268,000 | ||
10.5% Senior Secured Notes due 2019 [Member] | ||||
Related Party Transaction [Line Items] | ||||
Principal amount outstanding, interest rate | 10.50% | 10.50% | 10.50% |
Net_Income_Loss_Per_Share_Comp
Net Income (Loss) Per Share - Computation of Basic and Diluted Earnings per Share (Detail) (USD $) | 3 Months Ended | 12 Months Ended | |||||||||
In Thousands, except Share data, unless otherwise specified | Dec. 31, 2014 | Sep. 30, 2014 | Jun. 30, 2014 | Mar. 31, 2014 | Dec. 31, 2013 | Sep. 30, 2013 | Jun. 30, 2013 | Mar. 31, 2013 | Dec. 31, 2014 | Dec. 31, 2013 | Dec. 31, 2012 |
Numerator | |||||||||||
Net loss attributable to common stockholders | ($83,734) | $107,030 | $11,548 | ($146,335) | ($64,651) | $105,112 | ($14,266) | ($137,381) | ($111,491) | ($111,186) | ($87,139) |
Denominator | |||||||||||
Basic | 140,594,689 | 139,928,650 | 340,918,128 | ||||||||
Diluted | 140,594,689 | 139,928,650 | 340,918,128 | ||||||||
Net loss per share attributable to common stockholders | |||||||||||
Basic | ($0.79) | ($0.79) | ($0.26) | ||||||||
Diluted | ($0.79) | ($0.79) | ($0.26) |
Net_Income_Loss_Per_Share_Summ
Net Income (Loss) Per Share - Summary of Anti-Dilutive Securities Excluded from Computation of Diluted EPS (Detail) | 12 Months Ended | ||
Dec. 31, 2014 | Dec. 31, 2013 | Dec. 31, 2012 | |
Stock Options [Member] | |||
Antidilutive Securities Excluded from Computation of Earnings Per Share [Line Items] | |||
Anti-dilutive securities excluded from computation of diluted EPS | 10,341,948 | 10,921,049 | 6,609,382 |
Restricted Stock Units [Member] | |||
Antidilutive Securities Excluded from Computation of Earnings Per Share [Line Items] | |||
Anti-dilutive securities excluded from computation of diluted EPS | 153,314 | 166,928 | 141,086 |
Segment_Reporting_Additional_I
Segment Reporting - Additional Information (Detail) | 12 Months Ended |
Dec. 31, 2014 | |
Segment | |
Segment Reporting [Abstract] | |
Reportable segments | 2 |
Segment_Reporting_Consolidated
Segment Reporting - Consolidated Net Income (Loss) (Detail) (USD $) | 3 Months Ended | 12 Months Ended | |||||||||
In Thousands, unless otherwise specified | Dec. 31, 2014 | Sep. 30, 2014 | Jun. 30, 2014 | Mar. 31, 2014 | Dec. 31, 2013 | Sep. 30, 2013 | Jun. 30, 2013 | Mar. 31, 2013 | Dec. 31, 2014 | Dec. 31, 2013 | Dec. 31, 2012 |
Segment Reporting Information [Line Items] | |||||||||||
Net sales | $265,485 | $551,008 | $401,890 | $153,933 | $298,877 | $550,190 | $362,951 | $166,594 | $1,372,316 | $1,378,612 | $1,285,641 |
Segment adjusted EBITDA | 265,383 | 325,018 | 319,812 | ||||||||
Operating Segments [Member] | Education [Member] | |||||||||||
Segment Reporting Information [Line Items] | |||||||||||
Net sales | 1,209,142 | 1,207,908 | 1,128,591 | ||||||||
Segment adjusted EBITDA | 298,483 | 343,183 | 329,723 | ||||||||
Operating Segments [Member] | Trade Publishing [Member] | |||||||||||
Segment Reporting Information [Line Items] | |||||||||||
Net sales | 163,174 | 170,704 | 157,050 | ||||||||
Segment adjusted EBITDA | 12,675 | 24,448 | 28,774 | ||||||||
Corporate/Other [Member] | |||||||||||
Segment Reporting Information [Line Items] | |||||||||||
Segment adjusted EBITDA | ($45,775) | ($42,613) | ($38,685) |
Segment_Reporting_Consolidated1
Segment Reporting - Consolidated Statements of Operations (Detail) (USD $) | 3 Months Ended | 12 Months Ended | |||||||||
In Thousands, unless otherwise specified | Dec. 31, 2014 | Sep. 30, 2014 | Jun. 30, 2014 | Mar. 31, 2014 | Dec. 31, 2013 | Sep. 30, 2013 | Jun. 30, 2013 | Mar. 31, 2013 | Dec. 31, 2014 | Dec. 31, 2013 | Dec. 31, 2012 |
Segment Reporting [Abstract] | |||||||||||
Total Segment Adjusted EBITDA | $265,383 | $325,018 | $319,812 | ||||||||
Interest expense | -18,245 | -21,344 | -123,197 | ||||||||
Depreciation expense | -72,290 | -61,705 | -58,131 | ||||||||
Amortization expense | -247,487 | -280,271 | -370,291 | ||||||||
Stock compensation | -11,376 | -9,524 | -6,254 | ||||||||
Gain (loss) on derivative instruments | -1,593 | -252 | 1,688 | ||||||||
Asset impairment charges | -1,679 | -9,000 | -8,003 | ||||||||
Purchase accounting adjustments | -3,661 | -11,460 | 16,511 | ||||||||
Fees, expenses or charges for equity offerings, debt or acquisitions | -4,424 | -23,540 | -267 | ||||||||
Debt restructuring | 0 | -598 | |||||||||
Restructuring | -2,577 | -3,123 | -6,716 | ||||||||
Severance, separation costs and facility closures | -7,300 | -13,040 | -9,375 | ||||||||
Reorganization items, net | 149,114 | ||||||||||
Loss before reorganization items and taxes | -105,249 | -108,839 | -242,196 | ||||||||
Provision (benefit) for income taxes | 6,242 | 2,347 | -5,943 | ||||||||
Net loss | ($83,734) | $107,030 | $11,548 | ($146,335) | ($64,651) | $105,112 | ($14,266) | ($137,381) | ($111,491) | ($111,186) | ($87,139) |
Segment_Reporting_Segment_Info
Segment Reporting - Segment Information (Detail) (USD $) | Dec. 31, 2014 | Dec. 31, 2013 |
In Thousands, unless otherwise specified | ||
Sales Information [Line Items] | ||
Total Assets | $3,011,107 | $2,910,386 |
Education [Member] | ||
Sales Information [Line Items] | ||
Total Assets | 2,003,683 | 2,206,690 |
Trade Publishing [Member] | ||
Sales Information [Line Items] | ||
Total Assets | 218,530 | 231,918 |
Corporate/other [Member] | ||
Sales Information [Line Items] | ||
Total Assets | $788,894 | $471,778 |
Segment_Reporting_Schedule_of_
Segment Reporting - Schedule of Long-Lived Assets (Detail) (USD $) | Dec. 31, 2014 | Dec. 31, 2013 |
In Thousands, unless otherwise specified | ||
Segment Reporting [Abstract] | ||
Long-lived assets - International | $4,239 | $13,425 |
Segment_Reporting_Schedule_of_1
Segment Reporting - Schedule of Net Sales by Geographic Region (Detail) (USD $) | 3 Months Ended | 12 Months Ended | |||||||||
In Thousands, unless otherwise specified | Dec. 31, 2014 | Sep. 30, 2014 | Jun. 30, 2014 | Mar. 31, 2014 | Dec. 31, 2013 | Sep. 30, 2013 | Jun. 30, 2013 | Mar. 31, 2013 | Dec. 31, 2014 | Dec. 31, 2013 | Dec. 31, 2012 |
Sales Information [Line Items] | |||||||||||
Net sales | $265,485 | $551,008 | $401,890 | $153,933 | $298,877 | $550,190 | $362,951 | $166,594 | $1,372,316 | $1,378,612 | $1,285,641 |
U.S [Member] | |||||||||||
Sales Information [Line Items] | |||||||||||
Net sales | 1,291,199 | 1,296,563 | 1,206,972 | ||||||||
International [Member] | |||||||||||
Sales Information [Line Items] | |||||||||||
Net sales | $81,117 | $82,049 | $78,669 |
Valuation_and_Qualifying_Accou2
Valuation and Qualifying Accounts - Valuation and Qualifying Accounts (Detail) (USD $) | 12 Months Ended | ||||
In Thousands, unless otherwise specified | Dec. 31, 2014 | Dec. 31, 2013 | Dec. 31, 2012 | ||
Allowance for Bad Debt [Member] | |||||
Valuation and Qualifying Accounts Disclosure [Line Items] | |||||
Balance at Beginning of Year | $5,084 | $10,543 | $18,229 | ||
Net Charges to Revenues or Expenses and Additions | 3,274 | 2,261 | 2,113 | ||
Utilization of Allowances | -2,733 | -7,720 | -9,799 | ||
Balance at End of Year | 5,625 | 5,084 | 10,543 | ||
Reserve for Returns [Member] | |||||
Valuation and Qualifying Accounts Disclosure [Line Items] | |||||
Balance at Beginning of Year | 35,548 | 25,784 | 25,614 | ||
Net Charges to Revenues or Expenses and Additions | 53,877 | 58,290 | 44,213 | ||
Utilization of Allowances | -67,266 | -48,526 | -44,043 | ||
Balance at End of Year | 22,159 | 35,548 | 25,784 | ||
Reserve for Royalty Advances [Member] | |||||
Valuation and Qualifying Accounts Disclosure [Line Items] | |||||
Balance at Beginning of Year | 41,248 | 26,194 | 12,252 | ||
Net Charges to Revenues or Expenses and Additions | 13,829 | 16,949 | 14,536 | ||
Utilization of Allowances | -77 | -1,895 | -594 | ||
Balance at End of Year | 55,000 | 41,248 | 26,194 | ||
Deferred Tax Valuation Allowance [Member] | |||||
Valuation and Qualifying Accounts Disclosure [Line Items] | |||||
Balance at Beginning of Year | 527,960 | 512,234 | [1] | 822,485 | [1] |
Net Charges to Revenues or Expenses and Additions | 25,947 | 15,726 | |||
Utilization of Allowances | -3,247 | -310,251 | [1] | ||
Balance at End of Year | $550,660 | $527,960 | $512,234 | [1] | |
[1] | Deferred tax valuation allowance was reduced in connection with the accounting for emergence from bankruptcy in the year ended December 31, 2012. |
Quarterly_Results_of_Operation2
Quarterly Results of Operations (Unaudited) - Quarterly Results of Operations (Detail) (USD $) | 3 Months Ended | 12 Months Ended | |||||||||
In Thousands, unless otherwise specified | Dec. 31, 2014 | Sep. 30, 2014 | Jun. 30, 2014 | Mar. 31, 2014 | Dec. 31, 2013 | Sep. 30, 2013 | Jun. 30, 2013 | Mar. 31, 2013 | Dec. 31, 2014 | Dec. 31, 2013 | Dec. 31, 2012 |
Quarterly Financial Information Disclosure [Abstract] | |||||||||||
Net sales | $265,485 | $551,008 | $401,890 | $153,933 | $298,877 | $550,190 | $362,951 | $166,594 | $1,372,316 | $1,378,612 | $1,285,641 |
Gross profit | 81,356 | 287,102 | 178,255 | 1,560 | 107,637 | 270,124 | 140,562 | 13,927 | |||
Operating income (loss) | -79,734 | 116,151 | 18,324 | -140,152 | -59,552 | 107,535 | -5,639 | -128,989 | -85,411 | -86,645 | -120,687 |
Net income (loss) | ($83,734) | $107,030 | $11,548 | ($146,335) | ($64,651) | $105,112 | ($14,266) | ($137,381) | ($111,491) | ($111,186) | ($87,139) |
Quarterly_Results_of_Operation3
Quarterly Results of Operations (Unaudited) - Additional Information (Detail) (USD $) | 3 Months Ended | 12 Months Ended | 9 Months Ended | 12 Months Ended | |||||||||
Dec. 31, 2014 | Sep. 30, 2014 | Jun. 30, 2014 | Mar. 31, 2014 | Dec. 31, 2013 | Sep. 30, 2013 | Jun. 30, 2013 | Mar. 31, 2013 | Dec. 31, 2014 | Dec. 31, 2013 | Dec. 31, 2012 | Sep. 30, 2013 | Dec. 31, 2011 | |
Quarterly Results Of Operations [Line Items] | |||||||||||||
Net effect of increase in sales | $265,485,000 | $551,008,000 | $401,890,000 | $153,933,000 | $298,877,000 | $550,190,000 | $362,951,000 | $166,594,000 | $1,372,316,000 | $1,378,612,000 | $1,285,641,000 | ||
Resale Agreement [Member] | |||||||||||||
Quarterly Results Of Operations [Line Items] | |||||||||||||
Net effect of increase in sales | 62,600,000 | ||||||||||||
Additional Net Sales [Member] | |||||||||||||
Quarterly Results Of Operations [Line Items] | |||||||||||||
Prior period correction amounts | 1,100,000 | ||||||||||||
Incremental Expense [Member] | |||||||||||||
Quarterly Results Of Operations [Line Items] | |||||||||||||
Prior period correction amounts | 3,500,000 | 2,600,000 | |||||||||||
Severance and Other Charges [Member] | |||||||||||||
Quarterly Results Of Operations [Line Items] | |||||||||||||
Prior period correction amounts | 7,300,000 | ||||||||||||
Current Deferred Revenue [Member] | |||||||||||||
Quarterly Results Of Operations [Line Items] | |||||||||||||
Prior period correction amounts | 5,200,000 | ||||||||||||
Additional Net Sales [Member] | |||||||||||||
Quarterly Results Of Operations [Line Items] | |||||||||||||
Prior period correction amounts | 5,700,000 | ||||||||||||
First Quarter, 2014 [Member] | |||||||||||||
Quarterly Results Of Operations [Line Items] | |||||||||||||
Prior period adjustment description | During the first quarter of 2014, we recorded an out-of-period correction of approximately $1.1 million reducing net sales and increasing deferred revenue that should have been deferred previously. In addition, during the first quarter of 2014, we recorded approximately $3.5 million of incremental expense, primarily commissions, related to the prior year. These out-of-period corrections had no impact on our debt covenant compliance. Management believes these out-of-period corrections are not material to the current period financial statements or any previously issued financial statements. Additionally, we revised previously reported balance sheet amounts to severance and other charges of $7.3 million, which has been reclassified as long-term and to current deferred revenue of $5.2 million which has also been reclassified as long-term. The revision was not material to the reported consolidated balance sheet for any previously filed periods. | ||||||||||||
Previously Reported [Member] | |||||||||||||
Quarterly Results Of Operations [Line Items] | |||||||||||||
Prior period correction amounts | ($900,000) | ($300,000) | ($4,500,000) | ||||||||||
Fourth Quarter, 2013 [Member] | |||||||||||||
Quarterly Results Of Operations [Line Items] | |||||||||||||
Prior period adjustment description | During the fourth quarter of 2013, we recorded an out-of-period correction of approximately $5.7 million of additional net sales that was deferred and should have been recognized previously in 2011 ($4.5 million), 2012 ($0.9 million), and the first nine months of 2013 ($0.3 million). In addition, during 2013, we recorded approximately $2.6 million of incremental expense related to prior years. These out-of-period corrections had no impact on cash or debt covenants compliance. Management believes these out-of-period corrections are not material to the current period financial statements or any previously issued financial statements. |