Document And Entity Information
Document And Entity Information - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2018 | Feb. 01, 2019 | Jun. 30, 2018 | |
Document Information [Line Items] | |||
Document Type | 10-K | ||
Amendment Flag | false | ||
Document Period End Date | Dec. 31, 2018 | ||
Document Fiscal Year Focus | 2,018 | ||
Document Fiscal Period Focus | FY | ||
Entity Registrant Name | Houghton Mifflin Harcourt Co | ||
Entity Central Index Key | 1,580,156 | ||
Current Fiscal Year End Date | --12-31 | ||
Entity Well-known Seasoned Issuer | Yes | ||
Entity Voluntary Filers | No | ||
Entity Current Reporting Status | Yes | ||
Entity Filer Category | Large Accelerated Filer | ||
Entity Public Float | $ 787.5 | ||
Trading Symbol | HMHC | ||
Entity Common Stock, Shares Outstanding | 123,665,925 | ||
Entity Shell Company | false | ||
Entity Emerging Growth Company | false | ||
Entity Small Business | false |
Consolidated Balance Sheets
Consolidated Balance Sheets - USD ($) $ in Thousands | Dec. 31, 2018 | Dec. 31, 2017 |
Current assets | ||
Cash and cash equivalents | $ 253,365 | $ 148,979 |
Short-term investments | 49,833 | 86,449 |
Accounts receivable, net of allowances for bad debts and book returns of $20.7 million and $23.1 million, respectively | 203,574 | 192,569 |
Inventories | 184,209 | 150,694 |
Prepaid expenses and other assets | 15,297 | 29,919 |
Assets of discontinued operations | 123,761 | |
Total current assets | 706,278 | 732,371 |
Property, plant, and equipment, net | 125,925 | 148,659 |
Pre-publication costs, net | 323,641 | 313,997 |
Royalty advances to authors, net | 47,993 | 46,469 |
Goodwill | 716,073 | 716,073 |
Other intangible assets, net | 520,892 | 582,538 |
Deferred income taxes | 3,259 | 3,593 |
Deferred commissions | 22,635 | |
Other assets | 28,428 | 19,891 |
Total assets | 2,495,124 | 2,563,591 |
Current liabilities | ||
Current portion of long-term debt | 8,000 | 8,000 |
Accounts payable | 76,313 | 60,810 |
Royalties payable | 66,893 | 66,798 |
Salaries, wages, and commissions payable | 50,225 | 52,838 |
Deferred revenue | 251,944 | 265,074 |
Interest payable | 136 | 322 |
Severance and other charges | 6,020 | 6,926 |
Accrued postretirement benefits | 1,512 | 1,618 |
Other liabilities | 26,649 | 19,657 |
Liabilities of discontinued operations | 24,706 | |
Total current liabilities | 487,692 | 506,749 |
Long-term debt, net of discount and issuance costs | 755,649 | 760,194 |
Long-term deferred revenue | 395,500 | 418,734 |
Accrued pension benefits | 29,320 | 24,133 |
Accrued postretirement benefits | 14,300 | 20,285 |
Deferred income taxes | 27,075 | 22,269 |
Other liabilities | 17,118 | 16,034 |
Total liabilities | 1,726,654 | 1,768,398 |
Commitments and contingencies (Note 12) | ||
Stockholders' equity | ||
Preferred stock, $0.01 par value: 20,000,000 shares authorized; no shares issued and outstanding at December 31, 2018 and 2017 | ||
Common stock, $0.01 par value: 380,000,000 shares authorized; 148,164,854 and 147,911,466 shares issued at December 31, 2018 and 2017, respectively; 123,587,820 and 123,334,432 shares outstanding at December 31, 2018 and 2017, respectively | 1,481 | 1,479 |
Treasury stock, 24,577,034 shares as of December 31, 2018 and 2017, respectively, at cost | (518,030) | (518,030) |
Capital in excess of par value | 4,893,174 | 4,879,793 |
Accumulated deficit | (3,562,971) | (3,521,527) |
Accumulated other comprehensive loss | (45,184) | (46,522) |
Total stockholders' equity | 768,470 | 795,193 |
Total liabilities and stockholders' equity | $ 2,495,124 | $ 2,563,591 |
Consolidated Balance Sheets (Pa
Consolidated Balance Sheets (Parenthetical) - USD ($) $ in Millions | Dec. 31, 2018 | Dec. 31, 2017 |
Accounts receivable, allowances for bad debts and book returns | $ 20.7 | $ 23.1 |
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 | 148,164,854 | 147,911,466 |
Common stock, shares outstanding | 123,587,820 | 123,334,432 |
Treasury stock, shares | 24,577,034 | 24,577,034 |
Consolidated Statements of Oper
Consolidated Statements of Operations - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2018 | Dec. 31, 2017 | Dec. 31, 2016 | |
Income Statement [Abstract] | |||
Net sales | $ 1,322,417 | $ 1,327,029 | $ 1,291,978 |
Costs and expenses | |||
Cost of sales, excluding publishing rights and pre-publication amortization | 581,467 | 588,518 | 578,317 |
Publishing rights amortization | 34,713 | 46,238 | 61,351 |
Pre-publication amortization | 109,257 | 119,908 | 121,866 |
Cost of sales | 725,437 | 754,664 | 761,534 |
Selling and administrative | 649,295 | 636,326 | 681,170 |
Other intangible asset amortization | 26,933 | 29,248 | 26,375 |
Impairment charge for pre-publication costs and intangible assets | 3,980 | 130,205 | |
Restructuring | 4,657 | 37,775 | 0 |
Severance and other charges | 6,821 | 177 | 15,371 |
Gain on sale of assets | (201) | ||
Operating loss | (90,525) | (135,141) | (322,677) |
Other income (expense) | |||
Retirement benefits non-service income | 1,280 | 3,486 | 4,253 |
Interest expense | (45,680) | (42,805) | (39,181) |
Interest income | 2,550 | 1,338 | 518 |
Change in fair value of derivative instruments | (1,374) | 1,366 | (614) |
Income from transition services agreement | 1,889 | ||
Loss from continuing operations before taxes | (131,860) | (171,756) | (357,701) |
Income tax expense (benefit) for continuing operations | 5,597 | (51,419) | (51,556) |
Loss from continuing operations | (137,457) | (120,337) | (306,145) |
Earnings from discontinued operations, net of tax | 12,833 | 17,150 | 21,587 |
Gain on sale of discontinued operations, net of tax | 30,469 | ||
Income from discontinued operations, net of tax | 43,302 | 17,150 | 21,587 |
Net loss | $ (94,155) | $ (103,187) | $ (284,558) |
Net loss per share attributable to common stockholders | |||
Continuing operations | $ (1.11) | $ (0.98) | $ (2.50) |
Discontinued operations | 0.35 | 0.14 | 0.18 |
Net loss | $ (0.76) | $ (0.84) | $ (2.32) |
Weighted average shares outstanding | |||
Basic | 123,444,943 | 122,949,064 | 122,418,474 |
Diluted | 123,444,943 | 122,949,064 | 122,418,474 |
Consolidated Statements of Comp
Consolidated Statements of Comprehensive Loss - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2018 | Dec. 31, 2017 | Dec. 31, 2016 | |
Statement of Comprehensive Income [Abstract] | |||
Net loss | $ (94,155) | $ (103,187) | $ (284,558) |
Other comprehensive income (loss), net of taxes: | |||
Foreign currency translation adjustments, net of tax | (156) | 109 | (1,220) |
Net change in pension and benefit plan liabilities, net of tax | (2,056) | 1,734 | (9,937) |
Unrealized gain (loss) on short-term investments, net of tax | 9 | (18) | 57 |
Net change in unrealized gain (loss) on derivative financial instruments, net of tax | 3,541 | 4,948 | (2,467) |
Other comprehensive income (loss), net of taxes | 1,338 | 6,773 | (13,567) |
Comprehensive loss | $ (92,817) | $ (96,414) | $ (298,125) |
Consolidated Statements of Cash
Consolidated Statements of Cash Flows - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2018 | Dec. 31, 2017 | Dec. 31, 2016 | |
Cash flows from operating activities | |||
Net loss | $ (94,155) | $ (103,187) | $ (284,558) |
Adjustments to reconcile net loss to net cash provided by operating activities | |||
Earnings from discontinued operations, net of tax | (12,833) | (17,150) | (21,587) |
Gain on sale of discontinued operations, net of tax | (30,469) | ||
Gain on sale of assets | (201) | ||
Depreciation and amortization expense | 250,466 | 266,443 | 284,059 |
Amortization of debt discount and deferred financing costs | 4,181 | 4,181 | 4,181 |
Deferred income taxes | 5,140 | (49,247) | (53,182) |
Stock-based compensation expense | 13,248 | 10,728 | 10,491 |
Impairment charge for pre-publication costs and intangible assets | 3,980 | 130,205 | |
Restructuring charges related to property, plant, and equipment | 9,841 | ||
Change in fair value of derivative instruments | 1,374 | (1,366) | 614 |
Changes in operating assets and liabilities | |||
Accounts receivable | (11,005) | 12,564 | 37,897 |
Inventories | (33,515) | 8,122 | 8,465 |
Other assets | 3,908 | (10,548) | 6,673 |
Accounts payable and accrued expenses | 16,144 | (5,937) | (24,155) |
Royalties payable and author advances, net | (1,650) | (1,449) | (12,738) |
Deferred revenue | (7,692) | (13,500) | 39,249 |
Interest payable | (186) | 129 | 87 |
Severance and other charges | (2,823) | 221 | 4,315 |
Accrued pension and postretirement benefits | (904) | (6,932) | 3,675 |
Other liabilities | 5,056 | (2,145) | (21,906) |
Net cash provided by operating activities—continuing operations | 104,084 | 104,748 | 111,785 |
Net cash provided by operating activities—discontinued operations | 10,831 | 30,382 | 31,966 |
Net cash provided by operating activities | 114,915 | 135,130 | 143,751 |
Cash flows from investing activities | |||
Proceeds from sales and maturities of short-term investments | 86,539 | 80,690 | 197,724 |
Purchases of short-term investments | (49,553) | (86,211) | (81,086) |
Additions to pre-publication costs | (123,403) | (131,282) | (118,603) |
Additions to property, plant, and equipment | (53,741) | (55,092) | (103,152) |
Proceeds from sale of business | 140,000 | ||
Acquisition of intangible asset | (2,000) | ||
Investment in preferred stock | (500) | 0 | (1,000) |
Proceeds from sale of assets | 1,085 | ||
Net cash provided by (used in) investing activities—continuing operations | 427 | (193,895) | (106,117) |
Net cash used in investing activities—discontinued operations | (6,832) | (11,028) | (7,829) |
Net cash used in investing activities | (6,405) | (204,923) | (113,946) |
Cash flows from financing activities | |||
Borrowings under revolving credit facility | 50,000 | ||
Payments of revolving credit facility | (50,000) | ||
Payments of long-term debt | (8,000) | (8,000) | (8,000) |
Repurchases of common stock | 0 | (55,017) | |
Tax withholding payments related to net share settlements of restricted stock units and awards | (1,190) | (1,450) | (1,672) |
Proceeds from stock option exercises | 512 | 24,532 | |
Issuance of common stock under employee stock purchase plan | 1,263 | 1,608 | 2,197 |
Net collections (remittances) under transition service agreement | 3,803 | ||
Net cash used in financing activities—continuing operations | (4,124) | (7,330) | (37,960) |
Net increase (decrease) in cash and cash equivalents | 104,386 | (77,123) | (8,155) |
Cash and cash equivalent at the beginning of the period | 148,979 | 226,102 | 234,257 |
Cash and cash equivalent at the end of the period | 253,365 | 148,979 | 226,102 |
Supplemental disclosure of cash flow information | |||
Interest paid | 41,758 | 38,295 | 34,884 |
Income taxes paid | 430 | 715 | 5,104 |
Non-cash investing activities | |||
Property, plant, and equipment acquired under capital leases | 480 | ||
Pre-publication Costs [Member] | |||
Adjustments to reconcile net loss to net cash provided by operating activities | |||
Impairment charge for pre-publication costs and intangible assets | 3,980 | ||
Non-cash investing activities | |||
Costs included in accounts payable and accruals | 13,974 | 16,681 | 14,397 |
Property, Plant, and Equipment [Member] | |||
Adjustments to reconcile net loss to net cash provided by operating activities | |||
Impairment charge for pre-publication costs and intangible assets | 9,119 | ||
Non-cash investing activities | |||
Costs included in accounts payable and accruals | $ 1,908 | $ 11,403 | $ 5,707 |
Consolidated Statements of Stoc
Consolidated Statements of Stockholders' Equity - USD ($) $ in Thousands | Total | Common Stock [Member] | Treasury Stock [Member] | Capital in Excess of Par Value [Member] | Accumulated Deficit [Member] | Accumulated Other Comprehensive Loss [Member] |
Beginning balance at Dec. 31, 2015 | $ 1,198,321 | $ 1,456 | $ (463,013) | $ 4,833,388 | $ (3,133,782) | $ (39,728) |
Beginning balance, shares at Dec. 31, 2015 | 145,613,978 | |||||
Net loss | (284,558) | (284,558) | ||||
Other comprehensive income (loss), net of tax | (13,567) | (13,567) | ||||
Issuance of common stock for employee purchase plan | 2,778 | $ 1 | 2,777 | |||
Issuance of common stock for employee purchase plan, shares | 140,579 | |||||
Issuance of common stock for vesting of restricted stock units | $ 1 | (1) | ||||
Issuance of common stock for vesting of restricted stock units, shares | 102,151 | |||||
Issuance of common stock for exercise of stock options | 23,733 | $ 19 | 23,714 | |||
Issuance of common stock for exercise of stock option, shares | 1,879,924 | |||||
Stock withheld to cover tax withholdings requirements upon vesting of restricted stock units and awards | (1,672) | (1,672) | ||||
Restricted stock forfeitures and cancellations | $ (2) | 2 | ||||
Restricted stock forfeitures and cancellations, shares | (179,828) | |||||
Repurchases of common stock | (55,017) | (55,017) | ||||
Stock-based compensation expense | 10,022 | 10,022 | ||||
Ending balance at Dec. 31, 2016 | 880,040 | $ 1,475 | (518,030) | 4,868,230 | (3,418,340) | (53,295) |
Ending balance, shares at Dec. 31, 2016 | 147,556,804 | |||||
Net loss | (103,187) | (103,187) | ||||
Other comprehensive income (loss), net of tax | 6,773 | 6,773 | ||||
Issuance of common stock for employee purchase plan | 2,132 | $ 2 | 2,130 | |||
Issuance of common stock for employee purchase plan, shares | 176,749 | |||||
Issuance of common stock for vesting of restricted stock units | $ 2 | (2) | ||||
Issuance of common stock for vesting of restricted stock units, shares | 175,555 | |||||
Issuance of common stock for exercise of stock options | 512 | 512 | ||||
Issuance of common stock for exercise of stock option, shares | 39,200 | |||||
Stock withheld to cover tax withholdings requirements upon vesting of restricted stock units and awards | (1,450) | (1,450) | ||||
Restricted stock forfeitures and cancellations, shares | (36,842) | |||||
Stock-based compensation expense | 10,373 | 10,373 | ||||
Ending balance at Dec. 31, 2017 | 795,193 | $ 1,479 | (518,030) | 4,879,793 | (3,521,527) | (46,522) |
Ending balance, shares at Dec. 31, 2017 | 147,911,466 | |||||
Net loss | (94,155) | (94,155) | ||||
Other comprehensive income (loss), net of tax | 1,338 | 1,338 | ||||
Effects of adoption of new revenue accounting standard | 52,711 | 52,711 | ||||
Issuance of common stock for employee purchase plan | 1,613 | $ 2 | 1,611 | |||
Issuance of common stock for employee purchase plan, shares | 175,428 | |||||
Issuance of common stock for vesting of restricted stock units | $ 3 | (3) | ||||
Issuance of common stock for vesting of restricted stock units, shares | 346,255 | |||||
Stock withheld to cover tax withholdings requirements upon vesting of restricted stock units and awards | (1,190) | (1,190) | ||||
Restricted stock forfeitures and cancellations | $ (3) | 3 | ||||
Restricted stock forfeitures and cancellations, shares | (268,295) | |||||
Stock-based compensation expense | 12,960 | 12,960 | ||||
Ending balance at Dec. 31, 2018 | $ 768,470 | $ 1,481 | $ (518,030) | $ 4,893,174 | $ (3,562,971) | $ (45,184) |
Ending balance, shares at Dec. 31, 2018 | 148,164,854 |
Basis of Presentation
Basis of Presentation | 12 Months Ended |
Dec. 31, 2018 | |
Accounting Policies [Abstract] | |
Basis of Presentation | 1. Basis of Presentation Houghton Mifflin Harcourt Company (“HMH ” “Houghton Mifflin Harcourt ” “we ” “us ” “our ” or the “Company”) is a global learning company, committed to delivering integrated solutions that engage learners, empower educators and improve student outcomes. As a leading provider of Kindergarten through 12 th grade (“K-12”) core curriculum, supplemental and intervention solutions and professional learning services, HMH partners with educators and school districts to uncover solutions that unlock students’ potential and extend teachers’ capabilities. HMH serves more than 50 million students and 3 million educators in 150 countries, while its award-winning children’s books, novels, non-fiction, and reference titles are enjoyed by readers throughout the world. The K-12 market is our primary market, and in the United States, we are a leading provider of educational content by market share. Some of our core educational offerings include HMH Science Dimensions Collections GO Math! Read 180 Journeys Furthermore, for nearly two centuries, we have published renowned and awarded children’s, fiction, nonfiction, culinary and reference titles enjoyed by readers throughout the world. Our distinguished author list includes ten Nobel Prize winners, forty-eight Pulitzer Prize winners, and fifteen National Book Award winners. We are home to popular characters and titles such as Curious George, Carmen Sandiego, The Lord of the Rings, The Whole30, The Polar Express, We sell our products and services across multiple media and distribution channels. Leveraging our portfolio of content, including some of our best-known children’s brands and titles, such as Carmen Sandiego and Curious George, we have created interactive digital content, mobile applications and educational games that can be used by families at home or on the go. Our digital products portfolio, combined with our content development or distribution agreements with recognized technology leaders such as Apple, Google, Intel and Microsoft, enable us to bring our next-generation educational solutions and content to learners across virtually all platforms and devices. Additionally, we believe our technology and development capabilities allow us to enhance content engagement and effectiveness with embedded assessment, interactivity and personalized adaptable content as well as increased accessibility. The consolidated financial statements of HMH include the accounts of all of our wholly-owned subsidiaries as of December 31, 2018 and 2017 and for the periods ended December 31, 2018, 2017 and 2016. The accompanying consolidated financial statements have been prepared in accordance with accounting principles generally accepted in the United States of America (“GAAP”). 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. We expect our net cash provided by operations combined with our cash and cash equivalents and borrowing availability under our revolving credit facility to provide sufficient liquidity to fund our current obligations, capital spending, debt service requirements and working capital requirements over at least the next twelve months. The ability of the Company to fund planned operations is based on assumptions which involve significant judgment and estimates of future revenues, capital spend and other operating costs. Seasonality and Comparability 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. Approximately 85% of our net sales for the year ended December 31, 2018 were derived from our Education segment, which is a markedly seasonal business. Schools conduct the majority of their purchases in the second and third quarters of the calendar year in preparation for the beginning of the school year. Thus, for the years ended December 31, 2018, 2017 and 2016, approximately 67% of our consolidated net sales were 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 in light of the state adoption calendar. 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. |
Significant Accounting Policies
Significant Accounting Policies | 12 Months Ended |
Dec. 31, 2018 | |
Accounting Policies [Abstract] | |
Significant Accounting Policies | 2. Significant Accounting Policies 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, deferred revenue and related standalone selling price estimates, allowance for bad debts, recoverability of advances to authors, valuation of inventory, financial instruments valuation, income taxes, pensions and other postretirement benefits obligations, contingencies, litigation, depreciation and amortization periods, and the recoverability of long-term assets such as property, plant, and equipment, capitalized pre-publication costs, other identified intangibles and goodwill. 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. Adoption of New Revenue Recognition Accounting Standard On January 1, 2018, we adopted the new revenue standard utilizing the modified retrospective method. As a result, we changed our accounting policy for revenue recognition as detailed below. We recognized the cumulative effect of initially applying the new revenue standard as an adjustment to the opening balance of accumulated deficit. Using the modified retrospective approach, we applied the standard only to contracts that were not completed at the date of initial application. The comparative information has not been restated and continues to be reported under the accounting standards in effect for those periods as we believe it is still comparable. There was a significant impact relating to the requirement to capitalize incremental costs to acquire new contracts, which consist of sales commissions. During previous periods, these costs were expensed as incurred. Further, there is an impact to our accounting for software license revenue. Under the previous guidance, when vendor specific objective evidence (“VSOE”) was not established for undelivered maintenance services, software licenses were recognized ratably over the life of the service period due to the separation criteria of the software license and related maintenance services not being met. The requirement for establishing VSOE does not exist under the new standard, thus software licenses are no longer recognized over the maintenance term, but rather as the software licenses are delivered as fair value can be established to allow for separate recognition. The cumulative effect of the changes made to our consolidated balance sheets at January 1, 2018 were as follows: December 31, 2017 Adjustments due to Adoption January 1, 2018 Assets Accounts receivable, net $ 192,569 $ (1,092 ) $ 191,477 Contract assets (1) — 1,092 1,092 Deferred commissions — 24,040 24,040 Liabilities Deferred revenue (current and long-term) $ 683,808 $ (28,671 ) $ 655,137 Stockholders’ equity Accumulated deficit (2) $ (3,521,527 ) $ 52,711 $ (3,468,816 ) (1) Contract assets are included in prepaid expenses and other assets on our consolidated balance sheets. (2) The adoption resulted in the write off of a portion of a deferred tax asset for deferred revenue. However, due to our valuation allowance position, there is no net tax effect on accumulated deficit as the valuation allowance will also be reversed commensurate to the reduction in the deferred tax asset. Impact of New Revenue Recognition Accounting Standard on Financial Statement Line Items In accordance with the new revenue standard requirements, the disclosure of the impact of adoption on our consolidated balance sheets, statements of operations and cash flows were as follows: December 31, 2018 As Reported Balances Without Adoption Effect of Change Higher / (Lower) Assets Accounts receivable, net $ 203,574 $ 203,648 $ (74 ) Contract assets 74 — 74 Deferred commissions 22,635 — 22,635 Liabilities Deferred revenue (current and long-term) $ 647,444 $ 693,678 $ (46,234 ) Stockholders’ equity Accumulated deficit $ (3,562,971 ) $ (3,625,345 ) $ (62,374 ) Year Ended December 31, 2018 As Reported Balances Without Adoption Effect of Change Higher / (Lower) Net sales $ 1,322,417 $ 1,304,854 $ 17,563 Selling and administrative 649,295 647,891 1,404 Operating loss (90,525 ) (106,684 ) 16,159 Loss from continuing operations (131,860 ) (148,019 ) 16,159 Income from discontinued operations, net of tax 43,302 43,302 — Net loss (94,155 ) (110,314 ) 16,159 The adoption resulted in offsetting shifts in cash flows through net loss within cash flows from operating activities for deferred commissions, which are included within other assets, and deferred revenue consistent with the effects on our consolidated statements of operations as noted in the table above. The adoption had no impact on our overall cash flows from operating, investing or financing activities. Year Ended December 31, 2018 As Reported Balances Without Adoption Effect of Change Higher / (Lower) Cash flows from operating activities Net loss $ (94,155 ) $ (110,314 ) $ 16,159 Adjustments to reconcile net loss to net cash provided by operating activities Other assets 3,908 2,504 1,404 Deferred revenue (7,692 ) 9,871 (17,563 ) Net cash provided by operating activities—continuing operations 104,084 104,084 — Net cash provided by operating activities—discontinued operations 10,831 10,831 — Net cash provided by operating activities 114,915 114,915 — Revenue Recognition Revenue is recognized when a customer obtains control of promised goods or services, in an amount that reflects the consideration which we expect to receive in exchange for those goods or services. To determine revenue recognition for arrangements that we determine are within the scope of the new revenue recognition accounting standard, we perform the following five steps: (i) identify the contract with a customer; (ii) identify the performance obligations in the contract; (iii) determine the transaction price; (iv) allocate the transaction price to the performance obligations in the contract; and (v) recognize revenue when (or as) we satisfy a performance obligation. We only apply the five-step model to contracts when it is probable that we will collect the consideration we are entitled to in exchange for the goods or services we transfer to the customer. At contract inception, we assess the goods or services promised within each contract and determine those that are performance obligations and assess whether each promised good or service is distinct. We then recognize as revenue the amount of the transaction price that is allocated to the respective performance obligation when (or as) the performance obligation is satisfied. Revenue is measured as the amount of consideration we expect to receive in exchange for transferring products or services to a customer. To the extent the transaction price includes variable consideration, which generally reflects estimated future product returns, we estimate the amount of variable consideration that should be included in the transaction price utilizing the expected value method to which we expect to be entitled. Variable consideration is included in the transaction price if, in our judgment, it is probable that a significant future reversal of cumulative revenue under the contract will not occur. Estimates of variable consideration and the determination of whether to include estimated amounts in the transaction price are based largely on all information (historical, current and forecasted) that is reasonably available. Sales, value add, and other taxes collected on behalf of third parties are excluded from revenue. We estimate the collectability of contracts upon execution. For contracts with rights of return, the transaction price is adjusted to reflect the estimated returns for the arrangement on these sales and is made at the time of sale based on historical experience by product line or customer. The transaction prices allocated are adjusted to reflect expected returns and are based on historical return rates and sales patterns. Shipping and handling fees charged to customers are included in net sales. When determining the transaction price of a contract, an adjustment is made if payment from a customer occurs either significantly before or significantly after performance, resulting in a significant financing component. We do not assess whether a significant financing component exists if the period between when we perform our obligations under the contract and when the customer pays is one year or less. Significant financing components’ income is included in interest income. Contracts are often modified to account for changes in contract specifications and requirements. Contract modifications exist when the modification either creates new, or changes the existing, enforceable rights and obligations. Generally, contract modifications are for products or services that are not distinct from the existing contract due to the inability to use, consume or sell the products or services on their own to generate economic benefits and are accounted for as if they were part of that existing contract. The effect of such a contract modification on the transaction price and measure of progress for the performance obligation to which it relates is recognized as an adjustment to revenue (either as an increase in or a reduction of revenue) on a cumulative catch-up basis. Physical product revenue is generally recognized when the customer obtains control of our product, which occurs at a point in time, and may be upon shipment or upon delivery based on the contractual shipping terms of a contract. Revenues from static digital content commence upon delivery to the customer of the digital entitlement that is required to access and download the content and is typically recognized at a point in time. Revenues from subscription software licenses, related hosting services and product support are recognized evenly over the license term as we believe this best represents the pattern of transfer to the customer. The perpetual software licenses provide the customer with a functional license to our products and their related revenues are recognized when the customer receives entitlement to the software. For the technical services provided to customers in connection with the software license, including hosting services related to perpetual licenses, we recognize revenue upon delivery of the services. As the invoices are based on each day of service, this is directly linked to the transfer of benefit to the customer. If the contract contains a single performance obligation, the entire transaction price is allocated to the single performance obligation. We enter into certain contracts that have multiple performance obligations, one or more of which may be delivered subsequent to the delivery of other performance obligations. These performance obligations 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. We allocate the transaction price based on the estimated relative standalone selling prices of the promised products or services underlying each performance obligation. We determine standalone selling prices based on the price at which the performance obligation is sold separately. If the standalone selling price is not observable through past transactions, we estimate the standalone selling price taking into account available information such as market conditions and internally approved standard pricing discounts related to the performance obligations. Generally, our performance obligations include print and digital textbooks and instructional materials, trade books, reference materials, formative assessment materials and multimedia instructional programs; licenses to book rights and content; access to hosted content; and services including professional development, consulting and training. Our contracts may also contain software performance obligations including perpetual and subscription based licenses and software maintenance and support services. Accounts Receivable Accounts receivable include amounts billed and currently due from customers and are recorded net of allowances for doubtful accounts and reserves for returns. In the normal course of business, we extend credit to customers that satisfy predefined criteria. 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. Contract Assets Contract assets include unbilled amounts where revenue is recognized over time as the services are delivered to the customer based on the extent of progress towards completion and revenue recognized exceeds the amount billed to the customer, and right of payment is not subject to the passage of time. Amounts may not exceed their net realizable value. Contract assets are included in prepaid expenses and other assets on our consolidated balance sheets. Deferred Commissions Our incremental direct costs of obtaining a contract, which consist of sales commissions, are deferred and amortized over the period of contract performance. Applying the practical expedient, we recognize sales commission expense when incurred if the amortization period of the assets that we otherwise would have recognized is one year or less. At December 31, 2018 and January 1, 2018, we had $22.6 million and $24.0 million of deferred commissions, respectively. We had $10.5 million of amortization expense related to deferred commissions during the year ended December 31, 2018. These costs are included in selling and administrative expenses. Deferred Revenue Our contract liabilities consist of advance payments and billings in excess of revenue recognized and are classified as deferred revenue on our consolidated balance sheets. Our contract assets and liabilities are accounted for and presented on a net basis as either a contract asset or contract liability at the end of each reporting period. We classify deferred revenue as current or noncurrent based on the timing of when we expect to recognize revenue. In order to determine revenue recognized in the period from contract liabilities, we first allocate revenue to the individual contract liability balance outstanding at the beginning of the period until the revenue exceeds that balance. If additional advances are received on those contracts in subsequent periods, we assume all revenue recognized in the reporting period first applies to the beginning contract liability as opposed to a portion applying to the new advances for the period. Advertising Costs and Sample Expenses Advertising costs are charged to selling and administrative expenses as incurred. Advertising costs were $12.0 million, $12.4 million and $11.0 million for the years ended December 31, 2018, 2017 and 2016, 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 Accounts Receivable Accounts receivable are recorded net of allowances for doubtful accounts and reserves for 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 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 past usage and the expected future demand. The expected future demand of a program or title is determined by the copyright year, the previous year’s usage, the subsequent years’ 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 Film and media Revenue earned Capitalized Internal-Use Capitalized internal-use external-use 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 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 We review internal-use Pre-publication 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 Pre-publication sum-of-the-years-digits pre-publication pre-publication pre-publication Amortization expense related to pre-publication For the year ended December 31, 2017, an impairment charge for pre-publication pre-publication 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 tradenames) are not amortized, but are reviewed at least annually for impairment or earlier, if an indication of impairment exists. 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. We have the option of first assessing qualitative factors to determine whether it is necessary to perform the current two-step two-step Recoverability of goodwill can also be 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 the Education reporting unit by using various valuation techniques including an evaluation of our market capitalization and peer company multiples. With regard to indefinite-lived intangible assets, which includes the Houghton Mifflin Harcourt tradename at December 31, 2018 and 2017, the recoverability is evaluated using a one-step process whereby we determine the fair value by asset and then compare it to its carrying value to determine if the asset is impaired. We estimate the fair value based by preparing a relief-from-royalty discounted cash flow analysis using forwarding looking revenue projections. The significant assumptions used in discounted cash flow analysis include: future net sales, a long-term growth rate, a royalty rate and a discount rate used to present value future cash flows and the terminal value of the Education reporting unit. The discount rate is based on the weighted-average cost of capital method at the date of the evaluation. We completed our annual goodwill impairment tests as of October 1, 2018 and 2017. In 2018 and 2017, we used income and market valuation approaches to determine the fair value of the Education reporting unit. The fair value of the Education reporting unit substantially exceeded its carrying value as of the evaluation dates. No goodwill was deemed to be impaired for the years ended December 31, 2018, 2017 and 2016, respectively. We completed our annual indefinite-lived intangible assets impairment tests as of October 1, 2018 and 2017. No indefinite-lived intangible assets were deemed to be impaired for the years ended December 31, 2018 and 2017. We recorded non-cash 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 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 an undiscounted 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. Additionally, advances are evaluated periodically to determine if they are expected to be recovered on a title-by-title basis, with consideration given to the other titles in the author’s portfolio also earning against the outstanding advance. 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 payable and author advances, 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. We had accounted for the tax effects of The Tax Cuts and Jobs Act, enacted on December 22, 2017, on a provisional basis See Note 8 to the consolidated financial statements for further detail. Stock-Based Compensation Certain employees and directors have been granted stock options, restricted stock and restricted stock units in our 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 the current market price based on the target value of the award for restricted stock and restricted stock units, the Monte Carlo simulation for market-based restricted stock units and the Black-Scholes valuation model for stock options. We recognize stock-based compensation expense over the awards requisite service period on a straight-line basis for time based stock options, restricted stock and restricted stock units and on a graded basis for restricted stock and restricted stock units that are contingent on the achievement of performance conditions. 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, unrealized gains and losses on short-term investments and gains and losses on derivative instruments. 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 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 loss, 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. During 2018, 2017 and 2016, our interest rate swaps were designated as hedges and qualify for hedge accounting. Accordingly, we recorded an unrealized gain of $3.5 million and $4.9 million, and an unrealized loss of $2.5 million in our statements of comprehensive loss to account for the changes in fair value of these derivatives during the periods ended December 31, 2018, 2017 and 2016, respectively. The corresponding $2.4 million hedge asset is included within long-term other assets in our consolidated balance sheet as of December 31, 2018. The corresponding $1.2 million and $6.1 million hedge liability is included within long-term other liabilities in our consolidated balance sheet as of December 31, 2017 and 2016, respectively. Our foreign exchange forward contracts did not qualify for hedge accounting because we did not contemporaneously document our hedging strategy upon entering into the hedging arrangements. 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 |
Discontinued Operations
Discontinued Operations | 12 Months Ended |
Dec. 31, 2018 | |
Discontinued Operations and Disposal Groups [Abstract] | |
Discontinued Operations | 3. Discontinued Operations On October 1, 2018, we completed the previously announced sale of all the assets, including intellectual property, used primarily in our Riverside clinical and standardized testing business (“Riverside Business”) for cash consideration received of $140.0 million and the purchaser’s assumption of all liabilities relating to the Riverside Business subject to specified exceptions. Net proceeds from the sale after the payment of transaction costs were approximately $135.0 million with a post-tax Upon the signing of the asset purchase agreement on September 12, 2018, the Riverside Business qualified as a discontinued operation, and goodwill originally included in the Education reportable segment was transferred to the Riverside Business. The amount of transferred goodwill was $67.0 million and was determined using the relative fair value method. The relative fair value was determined based on the purchase price of the Riverside Business compared to the Education reportable segment fair value. The Education reportable segment fair value was based primarily on the market value of the overall Company at the date that the Riverside Business qualified as a discontinued operation. The allocation also required the assessment for impairment for each of the Riverside Business and Education reportable segment’s goodwill and indefinite-lived intangible assets carrying values. No impairment was deemed to exist. Selected financial information of the Riverside Business included in discontinued operations is as follows: For the Year Ended December 31, 2018 2017 2016 Net sales $ 56,562 $ 80,482 $ 80,707 Costs 37,714 54,718 55,304 Amortization 4,954 7,630 8,752 Impairment charge for intangible assets — — 9,000 Earnings from discontinued operations before taxes 13,894 18,134 7,651 Income tax expense (benefit) 1,061 984 (13,936 ) Earnings from discontinued operations, net of tax $ 12,833 $ 17,150 $ 21,587 The assets and liabilities of the Riverside Business have been classified as assets of discontinued operations and liabilities of discontinued operations on our consolidated balance sheets. The major categories of assets and liabilities of the Riverside Business included in assets of discontinued operations and liabilities of discontinued operations are as follows: December 31, 2017 Accounts receivable, net $ 8,511 Inventories 3,950 Prepaid expenses and other assets 28 Property, plant, and equipment, net 5,247 Pre-publication costs, net 10,900 Goodwill 67,000 Other intangible assets, net 28,125 Total assets of discontinued operations $ 123,761 Accounts payable $ 692 Royalties payable 6,194 Salaries, wages, and commissions payable 2,133 Deferred revenue 10,398 Other liabilities 5,289 Total liabilities of discontinued operations $ 24,706 |
Balance Sheet Information
Balance Sheet Information | 12 Months Ended |
Dec. 31, 2018 | |
Organization, Consolidation and Presentation of Financial Statements [Abstract] | |
Balance Sheet Information | 4. Balance Sheet Information Short-term Investments The following table shows the gross unrealized losses and market value of our available-for-sale securities with unrealized losses that are not deemed to be other-than-temporary, aggregated by investment category: December 31, 2018 Amortized Unrealized Unrealized Estimated Short-term investments: U.S. Government and agency securities $ 49,824 $ 31 $ (22 ) $ 49,833 December 31, 2017 Amortized Unrealized Unrealized Estimated Short-term investments: U.S. Government and agency securities $ 86,467 $ 25 $ (43 ) $ 86,449 The contractual maturities of our short-term investments are one year or less. Account Receivable Accounts receivable at December 31, 2018 and 2017 consisted of the following: 2018 2017 Accounts receivable $ 224,306 $ 215,657 Allowance for bad debt (2,173 ) (2,508 ) Reserve for book returns (18,559 ) (20,580 ) $ 203,574 $ 192,569 As of December 31, 2018, no individual customer comprised more than 10% of our accounts receivable, net balance. As of December 31, 2017, there was one individual customer that comprised approximately 10% of our accounts receivable, net 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. Inventories Inventories at December 31, 2018 and 2017 consisted of the following: 2018 2017 Finished goods $ 162,890 $ 141,925 Raw materials 21,319 8,769 Inventories $ 184,209 $ 150,694 Property, Plant, and Equipment Balances of major classes of assets and accumulated depreciation and amortization at December 31, 2018 and 2017 were as follows: 2018 2017 Land and land improvements $ 4,923 $ 4,923 Building and building equipment 9,415 9,867 Machinery and equipment 11,630 31,234 Capitalized software 563,314 522,826 Leasehold improvements 22,171 22,784 Film and media 14,920 8,056 626,373 599,690 Less: Accumulated depreciation and amortization (500,448 ) (451,031 ) Property, plant, and equipment, net $ 125,925 $ 148,659 For the years ended December 31, 2018, 2017 and 2016, depreciation and amortization expense related to property, plant, and equipment were $81.2 million, $71.0 million and $74.5 million, respectively. Property, plant, and equipment at December 31, 2018 and 2017 included approximately $0.7 million and $6.9 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, 2018 are $0.2 million in 2019, 2020 and 2021. Included within property, plant, and equipment on our consolidated balance sheets are film and media assets. Our film and media assets are comprised of the cost to develop our animated series Carmen Sandiego. These assets will be amortized proportionally to the revenues recognized relative to the total estimated revenue consistent with the guidance over episodic television series development. In the fourth quarter of 2018, we recorded amortization expense of $6.1 million against this asset upon recognition of revenue, and is included within cost of sales, excluding publishing rights and pre-publication amortization, in the statement of operations. No amortization expense was previously recorded. Substantially all property, plant, and equipment are pledged as collateral under our term loan and revolving credit facility. Contract Assets, Contract Liabilities and Deferred Commissions Contract assets consist of unbilled amounts at the reporting date and are transferred to accounts receivable when the rights become unconditional. Contract assets are included in prepaid expenses and other assets on our consolidated balance sheets. Contract liabilities consist of deferred revenue (current and long-term). The following table presents changes in contract assets and contract liabilities during the year ended December 31, 2018: December 31, 2018 January 1, 2018 $ Change % Change Contract assets $ 74 $ 1,092 $ (1,018 ) NM Contract liabilities (deferred revenue) 647,444 655,137 (7,693 ) (1.2 )% NM = not meaningful The $6.7 million increase in our net contract liabilities from January 1, 2018 to December 31, 2018 was primarily due to a $7.7 million decrease in our contract liabilities, primarily due to the satisfaction of performance obligations related to physical and digital products during the period. During the year ended December 31, 2018, we recognized the following net sales as a result of changes in the contract asset and contract liabilities balances: Year Ended 2018 Net sales recognized in the period from: Amounts included in contract liabilities at the beginning of the period $ 220,769 As of December 31, 2018, the aggregate amount of the transaction price allocated to the remaining performance obligations was $694.1 million, and we will recognize approximately 80% over the next 1 to 3 years to net sales. Prior to the adoption of the new revenue standard, we expensed incremental commissions paid to sales representatives for obtaining product sales as well as service contracts. We expect that the costs are recoverable, and under the new standard, we capitalize these incremental costs of obtaining customer contracts unless the capitalization and amortization of such costs are not expected to have a material impact on the financial statements. Applying the practical expedient, we recognize sales commission expense when incurred if the amortization period of the assets that we otherwise would have recognized is one year or less. We had deferred commissions in the amount of $22.6 million at December 31, 2018 and amortized $10.5 million during the year ended December 31, 2018. The amortization is included in selling and administrative expenses. |
Goodwill and Other Intangible A
Goodwill and Other Intangible Assets | 12 Months Ended |
Dec. 31, 2018 | |
Goodwill and Intangible Assets Disclosure [Abstract] | |
Goodwill and Other Intangible Assets | 5. Goodwill and Other Intangible Assets Goodwill and other intangible assets consisted of the following: December 31, 2018 December 31, 2017 Cost Accumulated Amortization Total Cost Accumulated Amortization Total Goodwill $ 716,073 $ — $ 716,073 $ 716,073 $ — $ 716,073 Trademarks and tradenames: indefinite-lived $ 161,000 $ — $ 161,000 $ 161,000 $ — $ 161,000 Trademarks and tradenames: definite-lived 164,130 (28,087 ) 136,043 164,130 (17,226 ) 146,904 Publishing rights 1,180,000 (1,112,869 ) 67,131 1,180,000 (1,078,156 ) 101,844 Customer related and other 444,640 (287,922 ) 156,718 444,640 (271,850 ) 172,790 Other intangible assets, net $ 1,949,770 $ (1,428,878 ) $ 520,892 $ 1,949,770 $ (1,367,232 ) $ 582,538 There were no changes in the carrying amount of goodwill related to continuing operations for the year ended December 31, 2018. Goodwill related to continuing operations decreased $67.0 million compared to previously reported amounts. The decrease arises from the allocation of goodwill to the Riverside Business (i.e., discontinued operations) from the Education reportable segment goodwill amount. Refer to Note 3. In accordance with the provisions of the accounting standard for goodwill and other intangible assets, goodwill and certain indefinite-lived tradenames are not amortized but rather are assessed for impairment on an annual basis. In connection with this assessment, we recorded an impairment charge of approximately $130.2 million for certain of our indefinite-lived intangible assets, which has been reflected as of the measurement date of October 1, 2016, which are now definite-lived. There was no impairment charge recorded in the years ended December 31, 2018 and 2017. There was no goodwill impairment for the years ended December 31, 2018, 2017 and 2016, respectively. During 2017, we acquired the remaining intellectual property rights to certain educational content and recorded an intangible asset of $2.0 million. During 2016, certain tradenames were deemed to be definite-lived and, accordingly, are being amortized over their estimated useful lives. This was due to our strategic decision to gradually migrate away from specific imprints, primarily the Holt McDougal and various supplemental brands, and in favor of marketing our products under the Houghton Mifflin Harcourt and HMH names. As a result of this change in estimate from indefinite-lived to definite-lived intangible assets, we recorded amortization expense of $8.1 million, $8.1 million and $2.0 million during 2018, 2017 and 2016, respectively, related to these tradenames. During 2016, $109.4 million of previously indefinite-lived intangible assets were transferred to definite-lived intangible assets and $130.2 million of indefinite-lived intangible assets were impaired. Amortization expense for publishing rights and customer related and other intangibles were $61.6 million, $75.5 million and $87.7 million for the years ended December 31, 2018, 2017 and 2016, respectively. Estimated aggregate amortization expense expected for each of the next five years related to intangibles subject to amortization is as follows: Trademarks and Tradenames Publishing Rights Other Intangible Assets 2019 $ 10,862 $ 26,557 $ 13,444 2020 10,862 20,056 9,594 2021 10,862 11,642 9,320 2022 10,862 7,569 9,119 2023 10,862 1,307 8,939 Thereafter 81,733 — 106,302 $ 136,043 $ 67,131 $ 156,718 |
Debt
Debt | 12 Months Ended |
Dec. 31, 2018 | |
Debt Disclosure [Abstract] | |
Debt | 6. Debt Our debt consisted of the following: December 31, 2018 December 31, 2017 $800,000 term loan due May 29, 2021 interest payable quarterly (net of discount and issuance costs) $ 763,649 $ 768,194 Less: Current portion of long-term debt 8,000 8,000 Total long-term debt, net of discount and issuance costs $ 755,649 $ 760,194 Revolving credit facility $ — $ — Long-term debt repayments due in each of the next five years and thereafter is as follows: Year 2019 8,000 2020 8,000 2021 756,000 $ 772,000 Term Loan Facility On May 29, 2015, we entered into an amended and restated $800.0 million term loan credit facility (the “term loan facility”). The term loan facility matures on May 29, 2021 and the interest rate is based on LIBOR plus 3.0% or an alternative base rate plus applicable margins. LIBOR is subject to a floor of 1.0% with the length of the LIBOR contracts ranging up to six months at the option of the Company. The term loan facility is required to be repaid in quarterly installments of $2.0 million, and may be prepaid, in whole or in part, at any time, without premium. The term loan facility was issued at a discount equal to 0.5% of the outstanding borrowing commitment. As of December 31, 2018, the interest rate of the term loan facility was 5.5%. The term loan facility does not require us to comply with financial maintenance covenants. We are currently required to meet certain incurrence based financial covenants as defined under our term loan facility. The term loan facility is subject to usual and customary conditions, representations, warranties and covenants, including restrictions on additional indebtedness, liens, investments, mergers, acquisitions, asset dispositions, dividends to stockholders, repurchase or redemption of our stock, transactions with affiliates and other matters. The term loan facility is subject to customary events of default. If an event of default occurs and is continuing, the administrative agent may, or at the request of certain required lenders shall, accelerate the obligations outstanding under the term loan facility. We are subject to an excess cash flow provision under our term loan facility which is predicated upon our leverage ratio and cash flow. There was no payment required under the excess cash flow provision in 2018 and 2017. Interest Rate Hedging On August 17, 2015, we entered into interest rate derivative contracts with various financial institutions having an aggregate notional amount of $400.0 million to convert floating rate debt into fixed rate debt and had $400.0 million outstanding as of December 31, 2018. We assessed at inception, and re-assess These interest rate swaps were designated as cash flow hedges and qualify for hedge accounting under the accounting guidance related to derivatives and hedging. Accordingly, we recorded an unrealized gain of $3.5 million and $4.9 million, and an unrealized loss of $2.5 million in our statements of comprehensive loss to account for the changes in fair value of these derivatives during the periods ended December 31, 2018, 2017 and 2016, respectively. The corresponding $ 2.4 Revolving Credit Facility On July 22 , 2015 , we entered into an amended and restated revolving credit facility (the “revolving credit facility”). The revolving credit facility provides borrowing availability in an amount equal to the lesser of either $ 250.0 million or a borrowing base that is computed monthly or weekly and comprised of the Borrowers’ and the Guarantors’ eligible inventory and receivables. The revolving credit facility includes a letter of credit subfacility of $50.0 million, a swingline subfacility of $20.0 million and the option to expand the facility by up to $100.0 million in the aggregate under certain specified conditions. The revolving credit facility may be prepaid, in whole or in part, at any time, without premium. The revolving credit facility requires the Company to maintain a minimum fixed charge coverage ratio of 1.0 to 1.0 on a trailing four-quarter basis only during certain periods commencing when excess availability under the revolving credit facility is less than certain limits prescribed by the terms of the revolving credit facility. The revolving credit facility is subject to usual and customary conditions, representations, warranties and covenants, including restrictions on additional indebtedness, liens, investments, mergers, acquisitions, asset dispositions, dividends to stockholders, repurchase or redemption of our stock, transactions with affiliates and other matters. The revolving credit facility is subject to customary events of default. As of December 31, 2018, no amounts are outstanding on the revolving credit facility. As of December 31, 2018, the minimum fixed charge coverage ratio covenant under our revolving credit facility was not applicable, due to our level of borrowing availability. The minimum fixed charge coverage ratio, which is only tested in limited situations, is 1.0 to 1.0 through the end of the facility. 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 the revolving credit facility and the term loan facility are guaranteed by the Company and each of its direct and indirect for-profit |
Restructuring, Severance and Ot
Restructuring, Severance and Other Charges | 12 Months Ended |
Dec. 31, 2018 | |
Restructuring and Related Activities [Abstract] | |
Restructuring, Severance and Other Charges | 7. Restructuring, Severance and Other Charges 2017 Restructuring Plan On an ongoing basis, we assess opportunities for improved operational effectiveness and efficiency and better alignment of expenses with net sales, while preserving our ability to make the investments in content and our people that we believe are important to our long-term success. As a result of these assessments, we have undertaken a restructuring initiative in order to enhance our growth potential and better position us for long-term success. This initiative is described below. Beginning at the end of 2016, we worked with a third party consultant to review our operating model and organizational design in order to improve our operational efficiency, better focus on the needs of our customers and right-size In March 2017, we committed to certain operational efficiency and cost-reduction actions we planned to take in order to accomplish these objectives (“2017 Restructuring Plan”). These actions included making organizational design changes across layers of the Company below the executive team and other right-sizing Implementation of actions under the 2017 Restructuring Plan resulted in total charges of approximately $42.8 million, of which approximately $32.6 million of these charges are estimated to result in cash outlays. We have recorded cash-related costs of $4.7 million and $27.9 million for the years ended December 31, 2018 and 2017, respectively, of which a portion of these expenses totaling approximately $16.2 million were related to severance and termination benefits for the year ended December 31, 2017. The remaining amount of approximately $4.7 million and $11.7 million related to implementation of the plan and real estate consolidation costs for the years ended December 31, 2018 and 2017, respectively. These costs are included in the restructuring line item within our consolidated statements of operations. T Type of Cost Year Ended Year Ended Year Ended Total Amount Restructuring charges: Severance and termination benefits $ — $ 16,206 $ — $ 16,206 Office space consolidation (2) 4,657 4,979 — 9,636 Implementation and impairment (3) — 16,590 — 16,990 $ 4,657 $ 37,775 $ — $ 42,832 (1) All restructuring charges are included within Corporate and Other. (2) During the year ended December 31, 2017, we recorded a non-cash write-off (3) During the year ended December 31, 2017, we recorded a non-cash Our restructuring liabilities are primarily comprised of accruals for severance and termination benefits and office space consolidation. The following is a rollforward of our liabilities associated with the 2017 Restructuring Plan: 2018 Restructuring Charges Cash payments Restructuring Severance and termination benefits $ 4,306 $ — $ (3,936 ) $ 370 Office space consolidation 3,663 4,657 (1,947 ) 6,373 $ 7,969 $ 4,657 $ (5,883 ) $ 6,743 2017 Restructuring Charges Cash payments Restructuring Severance and termination benefits $ — $ 16,206 $ (11,900 ) $ 4,306 Office space consolidation — 4,256 (593 ) 3,663 Implementation — 7,472 (7,472 ) — $ — $ 27,934 $ (19,965 ) $ 7,969 Severance and Other Charges 2018 Exclusive of the 2017 Restructuring Plan, during the year ended December 31, 2018, $5.7 million of severance payments were made to employees whose employment ended in 2018 and prior years and $1.0 million of net payments were made for office space no longer utilized by the Company as a result of prior savings initiatives. Further, we recorded an expense in the amount of $6.8 million to reflect costs for severance, which we expect to be paid over the next twelve months. 2017 Exclusive of the 2017 Restructuring Plan, during the year ended December 31, 2017, $6.4 million of severance payments were made to employees whose employment ended in 2017 and prior years and $3.1 million of net payments were made for office space no longer utilized by the Company as a result of prior savings initiatives. Further, we recorded an expense in the amount of $0.4 million to reflect costs for severance, which paid, along with a favorable $0.2 million adjustment for office space no longer occupied. 2016 During the year ended December 31, 2016, $7.4 million of severance payments were made to employees whose employment ended in 2016 and prior years and $3.9 million of net payments for office space no longer utilized by the Company. Further, we recorded an expense in the amount of $12.4 million to reflect additional costs for severance, which have been fully paid, along with a $3.3 million accrual for vacated space. A summary of the significant components of the severance/restructuring and other charges, which are not allocated to our segments and included in Corporate and Other, is as follows: 2018 Severance/ Severance/ Cash payments Severance/ Severance costs $ 341 $ 6,821 $ (5,742 ) $ 1,420 Other accruals 1,299 — (1,029 ) 270 $ 1,640 $ 6,821 $ (6,771 ) $ 1,690 2017 Severance/ Severance/ Cash payments Severance/ Severance costs $ 6,417 $ 353 $ (6,429 ) $ 341 Other accruals 4,604 (176 ) (3,129 ) 1,299 $ 11,021 $ 177 $ (9,558 ) $ 1,640 2016 Severance/ Severance/ Cash payments Severance/ Severance costs $ 1,455 $ 12,350 $ (7,388 ) $ 6,417 Other accruals 5,251 3,300 (3,947 ) 4,604 $ 6,706 $ 15,650 $ (11,335 ) $ 11,021 The current portion of the severance and other charges was $6.0 million and $6.9 million (inclusive of the 2017 Restructuring Plan) as of December 31, 2018 and 2017, respectively. |
Income Taxes
Income Taxes | 12 Months Ended |
Dec. 31, 2018 | |
Income Tax Disclosure [Abstract] | |
Income Taxes | 8. Income Taxes Effects of the Tax Cuts and Jobs Act New tax legislation, commonly referred to as the Tax Cuts and Jobs Act (the “2017 Tax Act”), was enacted on December 22, 2017. Accounting for income taxes requires companies to recognize the effect of tax law changes in the period of enactment even though the effective date for most provisions of the 2017 Tax Act is for tax years beginning after December 31, 2017. Given the significance of the legislation, the SEC staff issued Staff Accounting Bulletin No. 118 (“SAB 118”), which allows registrants to record provisional amounts during a one year “measurement period” similar to that used when accounting for business combinations. However, the measurement period is deemed to have ended earlier when the registrant has obtained, prepared and analyzed the information necessary to finalize its accounting. During the measurement period, impacts of the law are expected to be recorded at the time a reasonable estimate for all or a portion of the effects can be made, and provisional amounts can be recognized and adjusted as information becomes available, prepared or analyzed. SAB 118 summarizes a three-step process to be applied at each reporting period to account for and qualitatively disclose: (1) the effects of the change in tax law for which accounting is complete; (2) provisional amounts (or adjustments to provisional amounts) for the effects of the tax law where accounting is not complete, but that a reasonable estimate has been determined; and (3) a reasonable estimate cannot yet be made and therefore taxes are reflected in accordance with law prior to the enactment of the Tax Cuts and Jobs Act. We recorded provisional estimates and have subsequently finalized our accounting analysis based on guidance, interpretations and information available at December 31, 2018. Adjustments made in the fourth quarter of 2018 upon finalization of our accounting analysis were not material to our financial statements. Other significant provisions of the Act that were effective for 2018 include: an exemption from U.S. tax on dividends of future foreign earnings, limitations on the current deductibility of net interest expense in excess of 30% of adjustable taxable income, an incremental tax (base erosions anti-abuse tax, or “BEAT”) on excessive amounts paid to foreign related parties, and a minimum tax on certain foreign earnings in excess of 10% of the foreign subsidiaries tangible assets (i.e., global intangible low-taxed income, or “ GILTI ”). Under FASB Staff Q&A, Topic 740 No. 5, we have elected to recognize the resulting tax on GILTI as a period expense in the period the tax is incurred. The substantial impact of the enactment of the 2017 Tax Act is reflected in the tables below. The components of loss before taxes by jurisdiction are as follows: For the Year For the Year For the Year U.S. $ (134,884 ) $ (172,199 ) $ (360,689 ) Foreign 3,024 443 2,988 Loss before taxes $ (131,860 ) $ (171,756 ) $ (357,701 ) Total income taxes by jurisdiction are as follows: For the Year For the Year For the Year Income tax expense (benefit) U.S. $ 3,701 $ (51,106 ) $ (52,741 ) Foreign 1,896 (313 ) 1,185 $ 5,597 $ (51,419 ) $ (51,556 ) Significant components of the (benefit) expense for income taxes attributable to loss from continuing operations consist of the following: For the Year For the Year For the Year Current Foreign $ 1,562 $ (259 ) $ 437 U.S.—Federal (63 ) 0 92 U.S.—State and other (1,042 ) (1,914 ) 1,496 Total current 457 (2,173 ) 2,025 Deferred Foreign 334 (54 ) 748 U.S.—Federal 2,329 (54,666 ) (49,772 ) U.S.—State and other 2,477 5,474 (4,557 ) Total deferred 5,140 (49,246 ) (53,581 ) Income tax (benefit) expense $ 5,597 $ (51,419 ) $ (51,556 ) 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 Statutory rate 21.0 % 35.0 % 35.0 % Permanent items (2.6 ) (3.5 ) (0.8 ) Release of uncertain tax positions — (0.2 ) 0.3 Foreign rate differential (0.1 ) (0.2 ) 0.2 State and local taxes 6.8 17.1 5.9 State and local net operating loss re-establishment — — 3.2 Increase in valuation allowance (26.6 ) (68.5 ) (30.2 ) Change in valuation allowance due to 2017 Tax Act — (43.9 ) — Impact of federal rate change on deferred tax assets and liabilities due to 2017 Tax Act — 85.7 — Tax credits (2.7 ) 1.2 0.8 Adoption of 2016 Accounting Standard related to accounting changes for certain aspects of share-based payments to employees (1) — 7.2 — Effective tax rate (4.2 )% 29.9 % 14.4 % The significant components of the net deferred tax assets and liabilities are shown in the following table: 2018 2017 Tax assets related to Net operating loss and other carryforwards $ 228,364 $ 229,595 Returns reserve/inventory expense 39,113 40,687 Pension benefits 8,294 6,977 Postretirement benefits 4,338 6,285 Deferred interest (2) 261,647 280,246 Deferred revenue 118,450 122,192 Stock-based compensation 5,415 3,992 Deferred compensation 5,830 5,872 Research and Development 6,038 335 Other, net 9,064 8,540 Valuation allowance (562,392 ) (571,653 ) $ 124,161 $ 133,068 2018 2017 Tax liabilities related to Indefinite-lived intangible assets (76,715 ) (62,593 ) Definite-lived intangible assets (30,882 ) (45,644 ) Depreciation and amortization expense (34,210 ) (43,426 ) Other, net (6,170 ) (81 ) (147,977 ) (151,744 ) Net deferred tax liabilities $ (23,816 ) $ (18,676 ) (1) In March 2016, the FASB issued guidance that changes the accounting for certain aspects of shared-based payments to employees. The guidance requires the recognition of the income tax effects of awards in the income statement when the awards vest or are settled, thus eliminating additional paid-in capital pools. The guidance became effective January 1, 2017 which resulted in the recognition of $12.3 million of previously unrecorded additional paid-in capital net operating losses at that time. The additional net operating losses were offset by an increase in the valuation allowance, accordingly no net income tax benefit was recognized as a result of the adoption. (2) 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. At December 31, 2018 and 2017, we had gross deferred interest deductions totaling $975.2 million and $1,042.1 million, respectively. The disallowed interest is able to be carried forward indefinitely and utilized in future years pursuant to IRC Section 163(j). A full valuation allowance has been provided against deferred tax assets, excluding $3.3 million of foreign deferred tax assets which are expected to be realized, net of deferred tax liabilities resulting from indefinite-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: 2018 2017 Non-current deferred tax assets $ 3,259 $ 3,593 Non-current deferred tax liabilities (27,075 ) (22,269 ) $ (23,816 ) $ (18,676 ) A reconciliation of the gross amount of unrecognized tax benefits, excluding accrued interest and penalties, is as follows: Balance at December 31, 2015 $ 16,311 Reductions based on tax positions related to the prior year (855 ) Additions based on tax positions related to the current year 52 Balance at December 31, 2016 15,508 Reductions based on tax positions related to the prior year Additions based on tax positions related to the current year 172 Balance at December 31, 2017 15,680 Reductions based on tax positions related to the prior year — Additions based on tax positions related to the prior year — Balance at December 31, 2018 $ 15,680 For the year ended December 31, 2017, the Company recorded $0.2 million of uncertain tax benefits due to its uncertainty around net operating losses that were generated in tax years ended December 31, 2014 and 2015. For the year ended December 31, 2016, the Company recognized $0.9 million of uncertain tax benefits (excluding interest and penalties) due to the expiration of the statute of limitations. We are currently open for audit under the statute of limitation for Federal, state and foreign jurisdictions for years 2012 to 2017. 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, 2018 and 2017, accrued interest and penalties in the accompanying consolidated balance sheet and interest and penalties included in the provision for income taxes for the years ended December 31, 2018, 2017 and 2016 were immaterial. As of December 31, 2018, we have approximately $611.3 million of Federal tax loss carryforwards, which will expire between 2034 and 2037. The Company has approximately $1,234.3 million of state tax loss carryforward, which will expire between 2019 and 2038. In addition, we have foreign tax credit carryforwards of $8.4 million and research and development credit carryforwards of $4.2 million, which will expire between 2032 and 2036. The Company’s Irish net operating losses of $23.6 million are not subject to expiration. The Canadian losses ($1.8 million federal and $0.8 million provincial) will expire between 2033 and 2037. The Puerto Rico alternative minimum tax credit carryforwards of $2.7 million are not subject to expiration. Under Section 382 of the Internal Revenue Code of 1986, as amended, substantial changes in the Company’s ownership may limit the amount of net operating loss carryforwards that could be utilized annually in the future to offset taxable income. Specifically, this limitation may arise in the event of a cumulative change in ownership of the Company of more than 50% within a three-year period. Any such annual limitation may significantly reduce the utilization of net operating loss carryforwards before they expire. The Company performed an analysis through December 31, 2016, and determined any potential ownership change under Section 382 during the year would not have a material impact on the future utilization of U.S. net operating losses and tax credits. However, future transactions in the Company’s common stock could trigger an ownership change for purposes of Section 382, which could limit the amount of net operating loss carryforwards and other attributes that could be utilized annually in the future to offset taxable income, if any. Any such limitation, whether as the result of sales of common stock by our existing stockholders or sales of common stock by the Company, could have a material adverse effect on results of operations in future years. U.S. income taxes on the undistributed earnings of the Company’s non-U.S. subsidiaries have not been provided for as the Company currently plans to indefinitely reinvest these amounts and has the ability to do so. There are no cumulative undistributed and untaxed foreign earnings at December 31, 2018 and 2017. 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, 2018 and 2017 of $562.4 million and $571.7 million, respectively. We have decreased our valuation allowance by $9.3 million in 2018 with $35.1 million as a component of continuing operations and $0.5 million as a component of other comprehensive income. |
Retirement and Postretirement B
Retirement and Postretirement Benefit Plans | 12 Months Ended |
Dec. 31, 2018 | |
Retirement Benefits [Abstract] | |
Retirement and Postretirement Benefit Plans | 9. 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 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. 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, 2018 and 2017: 2018 2017 ABO at end of period $ 162,096 $ 176,444 Change in PBO PBO at beginning of period $ 176,444 $ 177,300 Interest cost on PBO 5,300 5,528 Actuarial (gain) loss (9,061 ) 6,206 Benefits paid (10,587 ) (12,590 ) PBO at end of period $ 162,096 $ 176,444 Change in plan assets Fair market value at beginning of period $ 152,311 $ 148,344 Actual return (9,052 ) 16,477 Company contribution 104 80 Benefits paid (10,587 ) (12,590 ) Fair market value at end of period $ 132,776 $ 152,311 Unfunded status $ (29,320 ) $ (24,133 ) Amounts recognized in the consolidated balance sheets at December 31, 2018 and 2017 consist of: 2018 2017 Noncurrent liabilities $ (29,320 ) $ (24,133 ) Additional year-end information for pension plans with ABO in excess of plan assets at December 31, 2018 and 2017 consist of: 2018 2017 PBO $ 162,096 $ 176,444 ABO 162,096 176,444 Fair value of plan assets 132,776 152,311 Weighted average assumptions used to determine the benefit obligations (both PBO and ABO) at December 31, 2018 and 2017 are: 2018 2017 Discount rate 4.2 % 3.6 % Increase in future compensation N/A N/A Net periodic pension (income) cost includes the following components: For the Year Ended December 31, 2018 For the Year Ended December 31, 2017 For the Year Ended December 31, 2016 Interest cost on projected benefit obligation $ 5,300 $ 5,528 $ 5,224 Expected return on plan assets (7,985 ) (9,263 ) (9,150 ) Amortization of net loss 1,420 804 50 Net pension (income) expense recognized for the period $ (1,265 ) $ (2,931 ) $ (3,876 ) Significant actuarial assumptions used to determine net periodic pension cost at December 31, 2018, 2017 and 2016 are: 2018 2017 2016 Discount rate 3.6 % 4.0 % 4.3 % Increase in future compensation N/A N/A N/A Expected long-term rate of return on assets 5.5 % 6.3 % 6.3 % 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 34% with equity managers, 56% with fixed income managers, 6% with real-estate investment trust managers and 4% with hedge fund managers. For 2019, we will use a 5.50% 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 a tax-exempt 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). We 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, 2018 and 2017 is shown below. Asset Class 2018 Percentage in Each Asset Class 2017 Percentage in Each Asset Class Equity 30.2 % 32.9 % Fixed income 57.6 55.3 Real estate investment trust 7.1 6.5 Other 5.1 5.3 100.0 % 100.0 % Fair Value Measurements The fair value of our pension plan assets by asset category at December 31 were as follows: December 31, 2018 Not subject to leveling (1) Cash and cash equivalents $ 85 $ 85 Equity securities U.S. equity 23,909 23,909 Non-US equity 11,497 11,497 Emerging markets equity 4,666 4,666 Fixed income Government bonds 19,903 19,903 Corporate bonds 40,524 40,524 Mortgage-backed securities 7,248 7,248 Asset-backed securities 2,773 2,773 Commercial mortgage-backed securities 1,900 1,900 International fixed income 4,161 4,161 Alternatives Real estate 9,448 9,448 Hedge funds 6,662 6,662 $ 132,776 $ 132,776 December 31, 2017 Not subject to leveling (1) Cash and cash equivalents $ 835 $ 835 Equity securities U.S. equity 29,749 29,749 Non-US equity 14,306 14,306 Emerging markets equity 6,004 6,004 Fixed income Government bonds 24,203 24,203 Corporate bonds 42,909 42,909 Mortgage-backed securities 8,621 8,621 Asset-backed securities 1,782 1,782 Commercial mortgage-backed securities 2,070 2,070 International fixed income 4,738 4,738 Alternatives Real estate 9,848 9,848 Hedge funds 7,246 7,246 $ 152,311 $ 152,311 (1) Investments that are valued using the net asset value per share (or its equivalent) practical expedient have not been classified in the fair value hierarchy. 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, and by style of each fund. Estimated Future Benefit Payments The following benefit payments are expected to be paid. Fiscal Year Ended Pension 2019 $ 12,892 2020 12,783 2021 14,612 2022 13,186 2023 13,149 2024–2028 64,237 Expected Contributions We do not expect to contribute in 2019, however, the actual funding decision will be made after the 2018 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. 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, 2018 and 2017. 2018 2017 Change in APBO APBO at beginning of period $ 21,903 $ 24,012 Service cost (benefits earned during the period) 128 134 Interest cost on APBO 672 771 Employee contributions 139 89 Plan amendments — — Actuarial (gain) (5,184 ) (1,248 ) Benefits paid (1,846 ) (1,855 ) APBO at end of period $ 15,812 $ 21,903 Change in plan assets Fair market value at beginning of period $ — $ — Company contributions 1,707 1,766 Employee contributions 139 89 Benefits paid (1,846 ) (1,855 ) Fair market value at end of period $ — $ — Unfunded status $ (15,812 ) $ (21,903 ) Amounts for postretirement benefits accrued in the consolidated balance sheets at December 31, 2018 and 2017 consist of: 2018 2017 Current liabilities $ (1,512 ) $ (1,618 ) Noncurrent liabilities (14,300 ) (20,285 ) Net amount recognized $ (15,812 ) $ (21,903 ) Amounts not yet reflected in net periodic benefit cost and recognized in accumulated other comprehensive income at December 31, 2018 and 2017 consist of: 2018 2017 Net gain (loss) $ 3,856 $ (1,328 ) Prior service (cost) credit (467 ) 222 Accumulated other comprehensive income (loss) $ 3,389 $ (1,106 ) Weighted average actuarial assumptions used to determine APBO at year-end December 31, 2018 and 2017 are: 2018 2017 Discount rate 4.2 % 3.6 % Health care cost trend rate assumed for next year 6.1 % 6.3 % Rate to which the cost trend rate is assumed to decline (ultimate trend rate) 4.5 % 4.5 % Year that the rate reaches the ultimate trend rate 2038 2038 Net periodic postretirement benefit cost (income) included the following components: 2018 2017 2016 Service cost $ 128 $ 134 $ 163 Interest cost on APBO 672 771 876 Amortization of unrecognized prior service cost (690 ) (1,339 ) (1,339 ) Amortization of net loss — 13 86 Net periodic postretirement benefit expense (income) $ 110 $ (421 ) $ (214 ) Significant actuarial assumptions used to determine postretirement benefit cost at December 31, 2018, 2017 and 2016 are: 2018 2017 2016 Discount rate 3.6 % 4.1 % 4.4 % Health care cost trend rate assumed for next year 6.3 % 6.6 % 6.9 % 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 2038 2038 2038 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 2017 and 2016 for the postretirement medical plan: 2018 2017 One-percentage-point increase Effect on total of service and interest cost components $ 4 $ 7 Effect on postretirement benefit obligation 238 117 One-percentage-point decrease Effect on total of service and interest cost components (4 ) (6 ) Effect on postretirement benefit obligation (208 ) (104 ) The following table presents the change in other comprehensive income for the year ended December 31, 2018 related to our pension and postretirement obligations. Pension P lans Postretirement Benefit Plan Total Sources of change in accumulated other comprehensive loss Net (gain) loss arising during the period $ 7,970 $ (5,184 ) $ 2,786 Amortization of prior service credit — 690 690 Amortization of net (gain) loss (1,420 ) — (1,420 ) Total accumulated other comprehensive income recognized during the period $ 6,550 $ (4,494 ) $ 2,056 Estimated amounts that will be amortized from accumulated other comprehensive income (loss) over the next fiscal year. Pension P lans Postretirement Benefit Plan Prior service credit (cost) $ — $ (42 ) Net gain (loss) (1,028 ) 164 $ (1,028 ) $ 122 Amounts not yet reflected in net periodic benefit cost for pension plans and postretirement plan and recognized in accumulated other comprehensive income at December 31, 2018 and 2017 consist of: 2018 2017 Net actuarial gain (loss) $ (36,779 ) $ (34,691 ) Accumulated other comprehensive loss $ (36,779 ) $ (34,691 ) Estimated Future Benefit Payments The following benefit payments, which reflect expected future service, are expected to be paid: Fiscal Year Ended Postretirement Benefit Plan 2019 $ 1,512 2020 1,459 2021 1,409 2022 1,355 2023 1,308 2024-2028 5,778 Expected Contribution We expect to contribute approximately $1.5 million in 2019. 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 $7.6 million, $8.0 million and $7.7 million for the years ended December 31, 2018, 2017 and 2016, respectively. We did not make any additional discretionary contributions in 2018, 2017 and 2016. |
Stock-Based Compensation
Stock-Based Compensation | 12 Months Ended |
Dec. 31, 2018 | |
Disclosure of Compensation Related Costs, Share-based Payments [Abstract] | |
Stock-Based Compensation | 10. Stock-Based Compensation Total compensation expense related to grants of stock options, restricted stock, restricted stock units, and purchases under the employee stock purchase plan recorded in the years ended December 31, 2018, 2017 and 2016 was approximately $13.3 million, $10.7 million and $10.5 million, respectively, and is included in selling and administrative expense. 2015 Omnibus Incentive Plan Our Board of Directors adopted the 2015 Omnibus Incentive Plan (“Plan”) in February 2015, which became effective on May 19, 2015 following stockholder approval. The Plan provides to grant up to an aggregate of 4,000,000 shares of our common stock plus 2,615,476 shares of our common stock that were reserved for issuance under the 2012 Management Incentive Plan (“2012 MIP”) as of May 19, 2015 but were not issuable pursuant to any outstanding awards. There were 10,604,071 additional shares underlying outstanding awards under the 2012 MIP as of May 19, 2015 that could have otherwise become available again for grants under the 2012 MIP in the future (by potential forfeiture, withholding or otherwise) which will instead become reserved for issuance under the Plan in the event such shares become available for future grants. Our Compensation Committee may grant awards of nonqualified stock options, incentive (qualified) stock options or cash, stock appreciation rights, restricted stock awards, restricted stock units, performance compensation awards, other stock-based awards or any combination of the foregoing. Certain employees, directors, officers, consultants or advisors who have been selected by the Compensation Committee and who enter into an award agreement with respect to an award granted to them under the Plan are eligible for awards under the 2015 Omnibus Incentive Plan. The stock option awards will be granted 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. The purpose of the Plan is to help us attract and retain key personnel by providing them the opportunity to acquire an equity interest in our Company. As of May 19, 2015, there were 6,615,476 shares authorized and available for issuance under the Plan plus any amount that could have otherwise become available again for grants under the 2012 MIP in the future by forfeiture, withholding or otherwise. As of December 31, 2018, there were 5,822,632 shares authorized and available for future issuance under the Plan. 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. Stock Options The following table summarizes option activity for certain employees in our stock options: Number of Shares Weighted Average Exercise Price Balance at December 31, 2017 3,760,098 $ 13.43 Granted 137,363 5.25 Exercised — — Forfeited (409,249 ) 14.50 Balance at December 31, 2018 3,488,212 $ 12.98 Vested and expected to vest at December 31, 2018 3,376,551 $ 13.02 Exercisable at December 31, 2018 2,135,401 $ 13.63 As of December 31, 2018, the range of exercise prices is $5.25 to $22.80 with a weighted average remaining contractual life of 3.5 years for options outstanding. The weighted average remaining contractual life for options vested and expected to vest and exercisable was 3.4 years and 2.2 years, respectively. 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 vested and expected to vest, was $0.5 million and zero at December 31, 2018 and 2017, respectively. The intrinsic value of options exercisable was zero at December 31, 2018 and 2017. 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 Year Ended December 31, 2018 For the Year Ended December 31, 2017 For the Year Ended December 31, 2016 Expected term (years) (a) 4.75 4.75 4.75 Expected dividend yield 0.00% 0.00% 0.00% Expected volatility (b) 35.30% 25.22%-25.50% 23.86%-24.26% Risk-free interest rate (c) 2.84% 1.94%-1.99% 1.20%-1.31% (a) The expected term is the number of years that we estimate that options will be outstanding prior to exercise. We have used the simplified method for estimating the expected term as we do not have sufficient stock option exercise experience to support a reasonable estimate of the expected term. The simplified method represents the best estimate of the expected term. (b) Historically, we have estimated volatility for options granted based on the historical volatility for a group of companies (including our own) believed to be a representative peer group, and were selected based on industry and market capitalization. During 2018, we have estimated volatility based on our historical volatility. (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. We 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 estimated forfeiture rates based on historical forfeiture data. As of December 31, 2018, there remained approximately $3.0 million of unearned compensation expense related to unvested stock options to be recognized over a weighted average term of 2.5 years. The weighted average grant date fair value was $1.82, $2.85 and $4.25 for options granted in 2018, 2017 and 2016, respectively. Restricted Stock and 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 and restricted stock units: Restricted Stock Restricted Stock Units Numbers of Units Weighted Average Grant Date Fair Value Numbers of Units Weighted Average Grant Date Fair Value Balance at December 31, 2017 273,655 $ 20.10 1,808,957 $ 13.37 Granted — — 2,365,322 6.83 Vested (9,619 ) 20.10 (498,806 ) 13.47 Forfeited (264,036 ) 20.10 (305,697 ) 9.03 Balance at December 31, 2018 — $ — 3,369,776 $ 9.16 During 2018 and 2017, we granted market-based restricted stock units to certain members of our senior management team. The number of shares ultimately issued to the recipient is based on the total shareholder return (TSR) of our common stock as compared to the TSR of the common stock of a peer group comprised of each member of the Russell 2000 Small Cap Market Index over a three-year performance measurement period. In addition, award recipients must remain employed by us throughout the three-year performance measurement period to attain the full amount of the market-based units that satisfy the market performance criteria. We determined the fair value of the 2018 and 2017 market-based restricted stock units to be approximately $3.0 million and $2.7 million, respectively. We determined the fair value based on a Monte Carlo simulation as of the date of grant, utilizing the following assumptions: the stock price on the date of grant of $7.00 and $5.25 for 2018, and $11.05 and $12.95 for 2017, a three-year performance measurement period, and a risk-free rate of 2.39% and 1.45% for 2018 and 2017, respectively. We recognize the expense on these awards on a straight-line basis over the three-year performance measurement period. As of December 31, 2018, there remained approximately $14.5 million of unearned compensation expense related to unvested restricted stock units to be recognized over a weighted average term of 1.7 years. The restricted stock units include a combination of time-based and performance-based vesting. Employee Stock Purchase Plan Our Board of Directors adopted an Employee Stock Purchase Plan (“ESPP”) in February 2015, which became effective on May 19, 2015 following stockholder approval. The ESPP provides for up to an aggregate of 1.3 million shares of our common stock may be made available for sale under the plan to eligible employees. At the beginning of each six-month offering period under the ESPP each participant is deemed to have been granted an option to purchase shares of our common stock equal to the amount of their payroll deductions during the period, but in any event not more than five percent of the employee’s eligible compensation, subject to certain limitations. Such options may be exercised only to the extent of accumulated payroll deductions at the end of the offering period, at a purchase price per share equal to 85% of the fair market value of our common stock at the beginning or end of each offering period, whichever is less. As of December 31, 2018, there were approximately 0.8 million shares available for future issuance under the ESPP. Information related to shares issued or to be issued in connection with the ESPP based on employee contributions and the range of purchase prices is as follows: December 31, December 31, Shares issued or to be issued 167,991 165,145 Range of purchase prices $ 6.50 $ 7.91—$9.22 We record stock-based compensation expense related to the discount provided to participants. Also, we use the Black-Scholes option-pricing model to calculate the grant-date fair value of shares issued under the employee stock purchase plan. We recognize expense related to shares purchased through the employee stock purchase plan ratably over the offering period. We recognized $0.3 million and $0.5 million in expense associated with our ESPP for the years ended December 31, 2018 and 2017, respectively. Warrants Following our emergence from Chapter 11 on June 22, 2012 and in accordance with the plan of reorganization, after giving effect of the 2-for-1 stock split, there were 7,368,422 shares of common stock reserved for issuance upon exercise of warrants under the 2012 MIP. Each existing common stockholder prior to bankruptcy received its pro rata share of warrants to purchase 5% of the common stock of the Company, subject to dilution for equity awards issued in connection with the 2012 MIP. The warrants have a term of seven years. As of December 31, 2018, there were warrants outstanding for the purchase of 7,297,909 shares of common stock at a strike price of $21.14. |
Fair Value Measurements
Fair Value Measurements | 12 Months Ended |
Dec. 31, 2018 | |
Fair Value Disclosures [Abstract] | |
Fair Value Measurements | 11. 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, foreign exchange forward contracts, and interest rate derivatives 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. Financial Assets and Liabilities The following tables present our financial assets and liabilities measured at fair value on a recurring basis at December 31, 2018 and 2017: 2018 Quoted Prices in Active Markets for Identical Assets (Level 1) Significant Other Observable Inputs (Level 2) Valuation Technique Financial assets Money market funds $ 228,587 $ 228,587 $ — (a) U.S. treasury securities 24,939 24,939 — (a) U.S. agency securities 24,894 — 24,894 (a) Interest rate derivatives 2,382 — 2,382 (a) $ 280,802 $ 253,526 $ 27,276 Financial liabilities Foreign exchange derivatives $ 534 $ — $ 534 (a) $ 534 $ — $ 534 2017 Quoted Prices in Active Markets for Identical Assets (Level 1) Significant Other Observable Inputs (Level 2) Valuation Technique Financial assets Money market funds $ 115,464 $ 115,464 $ — (a) U.S. treasury securities 16,065 16,065 — (a) U.S. agency securities 70,384 — 70,384 (a) Foreign exchange derivatives 351 — 351 (a) $ 202,264 $ 131,529 $ 70,735 Financial liabilities Interest rate derivatives $ 1,159 $ — $ 1,159 (a) $ 1,159 $ — $ 1,159 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 $228.6 million and $115.5 million invested in money market funds as of December 31, 2018 and 2017, respectively, we had $24.8 million and $33.5 million of cash invested in bank accounts as of December 31, 2018 and 2017, respectively. Our foreign exchange derivatives consist of forward 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 contracts to fix the functional currency value of forecasted commitments, payments and receipts. The aggregate notional amount of the outstanding foreign exchange forward contracts was $15.7 million and $15.8 million at December 31, 2018 and 2017, respectively. Our foreign exchange forward contracts contain netting provisions to mitigate credit risk in the event of counterparty default, including payment default and cross default. At December 31, 2018 and 2017, the fair value of our counterparty default exposure was less than $1.0 million and spread across several highly rated counterparties. Our interest rate derivatives 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. Our interest rate risk relates primarily to U.S. dollar borrowings, partially offset by U.S. dollar cash investments. We have historically used interest rate derivative instruments to manage our earnings and cash flow exposure to changes in interest rates by converting floating-rate debt into fixed-rate debt. The aggregate notional amount of the outstanding interest rate derivative instruments was $400.0 million as of December 31, 2018. We designate these derivative instruments either as fair value or cash flow hedges under the accounting guidance related to derivatives and hedging. We record changes in the value of fair value hedges in interest expense, which is generally offset by changes in the fair value of the hedged debt obligation. Interest payments made or received related to our interest rate derivative instruments are included in interest expense. We record the effective portion of any change in the fair value of derivative instruments designated as cash flow hedges as unrealized gains or losses in other comprehensive income (loss), net of tax, until the hedged cash flow occurs, at which point the effective portion of any gain or loss is reclassified to earnings. In the event the hedged cash flow does not occur, or it becomes no longer probable that it will occur, we reclassify the amount of any gain or loss on the related cash flow hedge to interest expense at that time. We believe we do not have significant concentrations of credit risk arising from our interest rate derivative instruments, whether from an individual counterparty or a related group of counterparties. We manage the concentration of counterparty credit risk on our interest rate derivatives instruments by limiting acceptable counterparties to a diversified group of major financial institutions with investment grade credit ratings, limiting the amount of credit exposure to each counterparty, and actively monitoring their credit ratings and outstanding fair values on an ongoing basis. Furthermore, none of our derivative transactions contain provisions that are dependent on our credit ratings from any credit rating agency. We also employ master netting arrangements that reduce our counterparty payment settlement risk on any given maturity date to the net amount of any receipts or payments due between us and the counterparty financial institution. Thus, the maximum loss due to counterparty credit risk is limited to the unrealized gains in such contracts net of any unrealized losses should any of these counterparties fail to perform as contracted. Although these protections do not eliminate concentrations of credit risk, as a result of the above considerations, we do not consider the risk of counterparty default to be significant. Non-Financial Assets and Liabilities Our non-financial 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 non-financial assets for impairment. If an impairment did occur, the asset is required to be recorded at the estimated fair value. There were no non-financial liabilities that were required to be measured at fair value on a nonrecurring basis during 2018 and 2017. The following table presents our nonfinancial assets and liabilities measured at fair value on a nonrecurring basis during 2017: 2017 Significant (Level 3) Total Valuation Nonfinancial assets Property, plant and equipment $ — $ — $ 9,119 (c ) Pre-publication costs — — 3,980 (c ) $ — $ — $ 13,099 The carrying amounts of software development costs, included within property, plant, and equipment, are periodically compared to net realizable value and impairment charges are recorded, as appropriate, when amounts expected to be realized are lower. During the year ended December 31, 2017 in connection with our 2017 Restructuring Plan, we recorded an impairment charge of approximately $9.1 million related to a certain long-lived asset included within property, plant, and equipment as the carrying amount of the asset is no longer recoverable based on projected cash flows, which was classified as Level 3 due to significant unobservable inputs. The impairment charge is included in the Restructuring line item in the consolidated statements of operations. There was no impairment of property, plant, and equipment for the year ended December 31, 2018. Pre-publication pre-publication 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, 2018 and 2017. 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 no impairment of other intangible assets for the years ended December 31, 2018 and 2017. Fair Value of Debt The following table presents the carrying amounts and estimated fair market values of our debt at December 31, 2018 and 2017. 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, 2018 December 31, 2017 Carrying Estimated Carrying Estimated Debt Term Loan $ 763,649 $ 691,102 $ 768,194 $ 710,579 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, 2018 and 2017. 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, 2018 | |
Commitments and Contingencies Disclosure [Abstract] | |
Commitments and Contingencies | 12. Commitments and Contingencies Lease Obligations We have operating leases for various real property, office facilities, and warehouse equipment that expire at various dates through 2023 and thereafter. 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 2019 $ 32,694 2020 26,889 2021 26,118 2022 24,549 2023 27,469 Thereafter 171,203 Total minimum lease payments $ 308,922 Total future minimal rentals under subleases $ 10,607 For the years ended December 31, 2018, 2017 and 2016, rent expense, net of sublease income, was $41.9 million, $37.6 million and $28.8 million, respectively. For the years ended December 31, 2018, 2017 and 2016, the rent expense included $4.7 million, $4.1 million and $3.3 million charge, respectively, as additional real estate was vacated. Commitments and Contingencies We are involved in ordinary and routine litigation and matters incidental to our business, including claims alleging breach of contract and seeking royalty payments. Litigation alleging infringement of copyrights and other intellectual property rights is also common in the educational publishing industry. For example, 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. During 2016, we settled all such pending or actively threatened litigations alleging infringement of copyrights, and made total settlement payments of $10.0 million, collectively. We received approximately $4.5 million of insurance recovery proceeds during the first quarter of 2017. While we may incur a loss associated with certain pending or threatened litigation, we are not able to estimate such amount, if any, 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. In connection with an agreement with a development content provider, we agreed to act as guarantor to that party’s loan to finance such development. Such guarantee is expected to remain until 2020. Under the guarantee, we believe the maximum future payments to approximate $14.0 million. In the unlikely event that we are required to make payments on behalf of the development content provider, we would have recourse against the development content provider. We were contingently liable for $4.4 million and $2.5 million of performance-related surety bonds for our operating activities as of December 31, 2018 and 2017, respectively. An aggregate of $24.3 million and $25.2 million of letters of credit existed each year at December 31, 2018 and 2017, of which $0.1 million backed the aforementioned performance-related surety bonds each year in 2018 and 2017. 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. 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, 2018 and 2017. |
Stockholders' Equity
Stockholders' Equity | 12 Months Ended |
Dec. 31, 2018 | |
Equity [Abstract] | |
Stockholders' Equity | 13. Stockholders’ Equity Accumulated Other Comprehensive Loss Accumulated other comprehensive loss consisted of the following at December 31, 2018, 2017 and 2016: 2018 2017 2016 Net change in pension and benefit plan liabilities $ (41,557 ) $ (39,501 ) $ (41,235 ) Foreign currency translation adjustments (5,909 ) (5,753 ) (5,862 ) Unrealized loss on short-term investments (99 ) (108 ) (90 ) Net change in unrealized loss on derivative instruments 2,381 (1,160 ) (6,108 ) $ (45,184 ) $ (46,522 ) $ (53,295 ) Amounts reclassified from accumulated other comprehensive loss for the years ended December 31, 2018, 2017 and 2016 relating to the amortization of defined benefit pension and postretirement benefit plans totaled approximately $(0.9) million, $(0.7) million and $0.5 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. Stock Repurchase Program Our Board of Directors previously authorized the repurchase of up to $1.0 billion in aggregate value of the Company’s common stock through December 31, 2018. As of December 31, 2018 there was approximately $482.0 million remaining under this authorization. There was no share repurchase activity for the years ended December 31, 2018 and 2017. The Company’s share repurchase activity during 2016 was as follows: Year Ended December 31, 2016 Cost of repurchases $ 55,017 Shares repurchased 2,903,566 Average cost per share $ 18.95 |
Related Party Transactions
Related Party Transactions | 12 Months Ended |
Dec. 31, 2018 | |
Related Party Transactions [Abstract] | |
Related Party Transactions | 14. Related Party Transactions There were no related party transactions during 2018, 2017 and 2016. |
Net Loss Per Share
Net Loss Per Share | 12 Months Ended |
Dec. 31, 2018 | |
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 Ended December 31, 2018 For the Year Ended December 31, 2017 For the Year Ended December 31, 2016 Numerator Loss from continuing operations $ (137,457 ) $ (120,337 ) $ (306,145 ) Earnings from discontinued operations, net of tax 12,833 17,150 21,587 Gain on sale of discontinued operations, net of tax 30,469 — — Income from discontinued operations, net of tax 43,302 17,150 21,587 Net loss attributable to common stockholders $ (94,155 ) $ (103,187 ) $ (284,558 ) Denominator Weighted average shares outstanding Basic 123,444,943 122,949,064 122,418,474 Diluted 123,444,943 122,949,064 122,418,474 Net loss per share attributable to common stockholders Basic and diluted: Continuing operations $ (1.11 ) $ (0.98 ) $ (2.50 ) Discontinued operations 0.35 0.14 0.18 Net loss $ (0.76 ) $ (0.84 ) $ (2.32 ) As we incurred a net loss in each of the periods presented above, all outstanding stock options and restricted stock units for those periods 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 attributable to common stockholders during the periods, and therefore excluded from the computation of diluted EPS: For the Year Ended December 31, 2018 For the Year Ended December 31, 2017 For the Year Ended December 31, 2016 Stock options 3,406,171 2,977,550 5,322,266 Restricted stock units 2,793,680 1,429,816 715,504 |
Segment Reporting
Segment Reporting | 12 Months Ended |
Dec. 31, 2018 | |
Segment Reporting [Abstract] | |
Segment Reporting | 16. Segment Reporting As of December 31, 2018, 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 who 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 distribution channels for Trade Publishing products are retail stores, both physical and online, and wholesalers. We measure and evaluate our reportable segments based on net sales and segment Adjusted EBITDA from continuing operations. We exclude from our segments 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 non-operational, As a result of the sale of the Riverside Business, the results of the Riverside Business are no longer presented within continuing operations. Accordingly, the segment disclosures for the Education reportable segment has been recast for all periods to exclude the results of the Riverside Business. These changes had no impact on the previously reported financial results for the Trade reportable segment. (in thousands) Year Ended December 31, Education Trade Corporate/ 2018 Net sales $ 1,122,689 $ 199,728 $ — Segment Adjusted EBITDA 210,604 21,942 (40,418 ) 2017 Net sales $ 1,146,453 $ 180,576 $ — Segment Adjusted EBITDA 223,941 12,096 (50,758 ) 2016 Net sales $ 1,126,363 $ 165,615 $ — Segment Adjusted EBITDA 194,632 6,255 (48,582 ) The following table disaggregates our net sales by major source: Year Ended December 31, 2018 (in thousands) Education Trade Consolidated Core solutions (1) $ 538,166 $ — $ 538,166 Extensions businesses (2) 584,523 — 584,523 Trade products — 199,728 199,728 Net sales $ 1,122,689 $ 199,728 $ 1,322,417 Year Ended December 31, 2017 (in thousands) Education Trade Consolidated Core solutions (1) $ 595,097 $ — $ 595,097 Extensions businesses (2) 551,356 — 551,356 Trade products — 180,576 180,576 Net sales $ 1,146,453 $ 180,576 $ 1,327,029 Year Ended December 31, 2016 (in thousands) Education Trade Consolidated Core solutions (1) $ 602,862 $ — $ 602,862 Extensions businesses (2) 523,501 — 523,501 Trade products — 165,615 165,615 Net sales $ 1,126,363 $ 165,615 $ 1,291,978 (1) Comprehensive solutions primarily for reading, math, science and social studies programs. (2) Primarily consists of our Heinemann brand, intervention, supplemental and professional services. Reconciliation of Segment Adjusted EBITDA to the consolidated statements of operations is as follows: (in thousands) Years Ended December 31, 2018 2017 2016 Total Segment Adjusted EBITDA $ 192,128 $ 185,279 $ 152,305 Interest expense (45,680 ) (42,805 ) (39,181 ) Interest income 2,550 1,338 518 Depreciation expense (75,116 ) (71,049 ) (74,467 ) Amortization expense—film asset (6,057 ) — — Amortization expense (170,903 ) (195,394 ) (209,592 ) Non-cash charges—stock compensation (13,248 ) (10,728 ) (10,491 ) Non-cash charges—loss on derivative instruments (1,374 ) 1,366 (614 ) Non-cash charges—asset impairment charges — (3,980 ) (130,205 ) Purchase accounting adjustments — — (5,116 ) Fees, expenses or charges for equity offerings, debt or acquisitions/dispositions (2,883 ) (1,464 ) (1,123 ) 2017 Restructuring Plan (4,657 ) (37,775 ) — Restructuring/Integration — — (14,364 ) Severance, separation costs and facility closures (6,821 ) (177 ) (15,371 ) Legal reimbursement (settlement) — 3,633 (10,000 ) Gain on sale of assets 201 — — Loss before taxes (131,860 ) (171,756 ) (357,701 ) (Provision) benefit for income taxes (5,597 ) 51,419 51,556 Net loss from continuing operations $ (137,457 ) $ (120,337 ) $ (306,145 ) Segment information as of December 31, 2018 and 2017 is as follows: (in thousands) 2018 2017 Total assets—Education segment $ 1,999,481 $ 2,121,647 Total assets—Trade Publishing segment 167,510 173,395 Total assets—Corporate and Other 328,133 268,549 Total consolidated assets $ 2,495,124 $ 2,563,591 The following represents long-lived assets (property, plant, and equipment) outside of the United States, which are substantially in Ireland. All other long-lived assets are located in the United States. (in thousands) 2018 2017 Long-lived assets—International $ 64 $ 7,593 The following is a schedule of net sales by geographic region: (in thousands) Year Ended December 31, 2018 Net sales—U.S. $ 1,249,568 Net sales—International 72,849 Total net sales $ 1,322,417 Year Ended December 31, 2017 Net sales—U.S. $ 1,254,956 Net sales—International 72,073 Total net sales $ 1,327,029 Year Ended December 31, 2016 Net sales—U.S. $ 1,203,855 Net sales—International 88,123 Total net sales $ 1,291,978 |
Valuation and Qualifying Accoun
Valuation and Qualifying Accounts | 12 Months Ended |
Dec. 31, 2018 | |
SEC Schedule, 12-09, Valuation and Qualifying Accounts [Abstract] | |
Valuation and Qualifying Accounts | 17. Valuation and Qualifying Accounts Balance at Net Charges Utilization of Balance at 2018 Allowance for doubtful accounts $ 2,508 $ 128 $ (463 ) $ 2,173 Reserve for returns 20,580 36,395 (38,416 ) 18,559 Reserve for royalty advances 103,606 17,301 (3,110 ) 117,797 Deferred tax valuation allowance 571,653 (7,667 ) (1,594 ) 562,392 2017 Allowance for doubtful accounts $ 3,463 $ 400 $ (1,355 ) $ 2,508 Reserve for returns 18,671 43,682 (41,773 ) 20,580 Reserve for royalty advances 85,526 17,861 219 103,606 Deferred tax valuation allowance 759,887 (187,480 ) (754 ) 571,653 2016 Allowance for doubtful accounts $ 8,323 $ 734 $ (5,594 ) $ 3,463 Reserve for returns 23,889 54,058 (59,276 ) 18,671 Reserve for royalty advances 69,978 16,270 (722 ) 85,526 Deferred tax valuation allowance 664,730 98,949 (3,792 ) 759,887 |
Quarterly Results of Operations
Quarterly Results of Operations (Unaudited) | 12 Months Ended |
Dec. 31, 2018 | |
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, 2018: Net sales $ 199,759 $ 357,365 $ 516,255 $ 249,038 Gross profit 64,315 162,827 278,175 91,663 Operating income (loss) (92,905 ) (14,747 ) 91,838 (74,711 ) Income (loss) from continuing operations, net of tax (105,886 ) (29,089 ) 83,908 (86,390 ) Income from discontinued operations, net of tax 4,575 5,817 2,441 30,469 Net income (loss) (101,311 ) (23,272 ) 86,349 (55,921 ) Net income (loss) per share attributable to common stockholders Basic: Continuing operations $ (0.86 ) $ (0.24 ) $ 0.68 $ (0.70 ) Discontinued operations 0.04 0.05 0.02 0.25 Net loss $ (0.82 ) $ (0.19 ) $ 0.70 $ (0.45 ) Diluted: Continuing operations $ (0.86 ) $ (0.24 ) $ 0.68 $ (0.70 ) Discontinued operations 0.04 0.05 0.02 0.25 Net loss $ (0.82 ) $ (0.19 ) $ 0.70 $ (0.45 ) 2017: Net sales $ 203,685 $ 373,393 $ 516,206 $ 233,745 Gross profit 63,702 165,803 271,053 71,807 Operating income (loss) (100,494 ) (33,837 ) 88,373 (89,183 ) Income (loss) from continuing operations, net of tax (123,861 ) (48,666 ) 88,636 (36,446 ) Income from discontinued operations, net of tax 3,203 1,799 1,870 10,278 Net income (loss) (120,658 ) (46,867 ) 90,506 (26,168 ) Net income (loss) per share attributable to common stockholders Basic: Continuing operations $ (1.01 ) $ (0.40 ) $ 0.72 $ (0.29 ) Discontinued operations 0.03 0.02 0.02 0.08 Net loss $ (0.98 ) $ (0.38 ) $ 0.74 $ (0.21 ) Diluted: Continuing operations $ (1.01 ) $ (0.40 ) $ 0.72 $ (0.29 ) Discontinued operations 0.03 0.02 0.01 0.08 Net loss $ (0.98 ) $ (0.38 ) $ 0.73 $ (0.21 ) 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 three months ended September 30, 2018, we recorded out-of-period corrections of approximately $2.8 million increasing net sales and reducing deferred revenue that should have been recognized during the three months ended March 31, 2018. During the six months ended June 30, 2017, we recorded out-of-period corrections of approximately $4.0 million increasing net sales and reducing deferred revenue that should have been recognized previously. Management believes these out-of-period corrections are not material to the current period financial statements or any previously issued financial statements. |
Subsequent Events
Subsequent Events | 12 Months Ended |
Dec. 31, 2018 | |
Subsequent Events [Abstract] | |
Subsequent Events [Text Block] | 19. Subsequent Events On January 14, 2019, we completed the acquisition of certain assets of PV Waggle LLC, which comprised a web-based adaptive learning solution providing Math and ELA instruction for students in grades 2-8 for a total purchase price of approximately $5.4 million. We are currently in the process of finalizing the accounting for the transaction. |
Significant Accounting Polici_2
Significant Accounting Policies (Policies) | 12 Months Ended |
Dec. 31, 2018 | |
Accounting Policies [Abstract] | |
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, deferred revenue and related standalone selling price estimates, allowance for bad debts, recoverability of advances to authors, valuation of inventory, financial instruments valuation, income taxes, pensions and other postretirement benefits obligations, contingencies, litigation, depreciation and amortization periods, and the recoverability of long-term assets such as property, plant, and equipment, capitalized pre-publication costs, other identified intangibles and goodwill. 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. |
Adoption of New Revenue Recognition Accounting Standard | Adoption of New Revenue Recognition Accounting Standard On January 1, 2018, we adopted the new revenue standard utilizing the modified retrospective method. As a result, we changed our accounting policy for revenue recognition as detailed below. We recognized the cumulative effect of initially applying the new revenue standard as an adjustment to the opening balance of accumulated deficit. Using the modified retrospective approach, we applied the standard only to contracts that were not completed at the date of initial application. The comparative information has not been restated and continues to be reported under the accounting standards in effect for those periods as we believe it is still comparable. There was a significant impact relating to the requirement to capitalize incremental costs to acquire new contracts, which consist of sales commissions. During previous periods, these costs were expensed as incurred. Further, there is an impact to our accounting for software license revenue. Under the previous guidance, when vendor specific objective evidence (“VSOE”) was not established for undelivered maintenance services, software licenses were recognized ratably over the life of the service period due to the separation criteria of the software license and related maintenance services not being met. The requirement for establishing VSOE does not exist under the new standard, thus software licenses are no longer recognized over the maintenance term, but rather as the software licenses are delivered as fair value can be established to allow for separate recognition. The cumulative effect of the changes made to our consolidated balance sheets at January 1, 2018 were as follows: December 31, 2017 Adjustments due to Adoption January 1, 2018 Assets Accounts receivable, net $ 192,569 $ (1,092 ) $ 191,477 Contract assets (1) — 1,092 1,092 Deferred commissions — 24,040 24,040 Liabilities Deferred revenue (current and long-term) $ 683,808 $ (28,671 ) $ 655,137 Stockholders’ equity Accumulated deficit (2) $ (3,521,527 ) $ 52,711 $ (3,468,816 ) (1) Contract assets are included in prepaid expenses and other assets on our consolidated balance sheets. (2) The adoption resulted in the write off of a portion of a deferred tax asset for deferred revenue. However, due to our valuation allowance position, there is no net tax effect on accumulated deficit as the valuation allowance will also be reversed commensurate to the reduction in the deferred tax asset. Impact of New Revenue Recognition Accounting Standard on Financial Statement Line Items In accordance with the new revenue standard requirements, the disclosure of the impact of adoption on our consolidated balance sheets, statements of operations and cash flows were as follows: December 31, 2018 As Reported Balances Without Adoption Effect of Change Higher / (Lower) Assets Accounts receivable, net $ 203,574 $ 203,648 $ (74 ) Contract assets 74 — 74 Deferred commissions 22,635 — 22,635 Liabilities Deferred revenue (current and long-term) $ 647,444 $ 693,678 $ (46,234 ) Stockholders’ equity Accumulated deficit $ (3,562,971 ) $ (3,625,345 ) $ (62,374 ) Year Ended December 31, 2018 As Reported Balances Without Adoption Effect of Change Higher / (Lower) Net sales $ 1,322,417 $ 1,304,854 $ 17,563 Selling and administrative 649,295 647,891 1,404 Operating loss (90,525 ) (106,684 ) 16,159 Loss from continuing operations (131,860 ) (148,019 ) 16,159 Income from discontinued operations, net of tax 43,302 43,302 — Net loss (94,155 ) (110,314 ) 16,159 The adoption resulted in offsetting shifts in cash flows through net loss within cash flows from operating activities for deferred commissions, which are included within other assets, and deferred revenue consistent with the effects on our consolidated statements of operations as noted in the table above. The adoption had no impact on our overall cash flows from operating, investing or financing activities. Year Ended December 31, 2018 As Reported Balances Without Adoption Effect of Change Higher / (Lower) Cash flows from operating activities Net loss $ (94,155 ) $ (110,314 ) $ 16,159 Adjustments to reconcile net loss to net cash provided by operating activities Other assets 3,908 2,504 1,404 Deferred revenue (7,692 ) 9,871 (17,563 ) Net cash provided by operating activities—continuing operations 104,084 104,084 — Net cash provided by operating activities—discontinued operations 10,831 10,831 — Net cash provided by operating activities 114,915 114,915 — |
Revenue Recognition | Revenue Recognition Revenue is recognized when a customer obtains control of promised goods or services, in an amount that reflects the consideration which we expect to receive in exchange for those goods or services. To determine revenue recognition for arrangements that we determine are within the scope of the new revenue recognition accounting standard, we perform the following five steps: (i) identify the contract with a customer; (ii) identify the performance obligations in the contract; (iii) determine the transaction price; (iv) allocate the transaction price to the performance obligations in the contract; and (v) recognize revenue when (or as) we satisfy a performance obligation. We only apply the five-step model to contracts when it is probable that we will collect the consideration we are entitled to in exchange for the goods or services we transfer to the customer. At contract inception, we assess the goods or services promised within each contract and determine those that are performance obligations and assess whether each promised good or service is distinct. We then recognize as revenue the amount of the transaction price that is allocated to the respective performance obligation when (or as) the performance obligation is satisfied. Revenue is measured as the amount of consideration we expect to receive in exchange for transferring products or services to a customer. To the extent the transaction price includes variable consideration, which generally reflects estimated future product returns, we estimate the amount of variable consideration that should be included in the transaction price utilizing the expected value method to which we expect to be entitled. Variable consideration is included in the transaction price if, in our judgment, it is probable that a significant future reversal of cumulative revenue under the contract will not occur. Estimates of variable consideration and the determination of whether to include estimated amounts in the transaction price are based largely on all information (historical, current and forecasted) that is reasonably available. Sales, value add, and other taxes collected on behalf of third parties are excluded from revenue. We estimate the collectability of contracts upon execution. For contracts with rights of return, the transaction price is adjusted to reflect the estimated returns for the arrangement on these sales and is made at the time of sale based on historical experience by product line or customer. The transaction prices allocated are adjusted to reflect expected returns and are based on historical return rates and sales patterns. Shipping and handling fees charged to customers are included in net sales. When determining the transaction price of a contract, an adjustment is made if payment from a customer occurs either significantly before or significantly after performance, resulting in a significant financing component. We do not assess whether a significant financing component exists if the period between when we perform our obligations under the contract and when the customer pays is one year or less. Significant financing components’ income is included in interest income. Contracts are often modified to account for changes in contract specifications and requirements. Contract modifications exist when the modification either creates new, or changes the existing, enforceable rights and obligations. Generally, contract modifications are for products or services that are not distinct from the existing contract due to the inability to use, consume or sell the products or services on their own to generate economic benefits and are accounted for as if they were part of that existing contract. The effect of such a contract modification on the transaction price and measure of progress for the performance obligation to which it relates is recognized as an adjustment to revenue (either as an increase in or a reduction of revenue) on a cumulative catch-up basis. Physical product revenue is generally recognized when the customer obtains control of our product, which occurs at a point in time, and may be upon shipment or upon delivery based on the contractual shipping terms of a contract. Revenues from static digital content commence upon delivery to the customer of the digital entitlement that is required to access and download the content and is typically recognized at a point in time. Revenues from subscription software licenses, related hosting services and product support are recognized evenly over the license term as we believe this best represents the pattern of transfer to the customer. The perpetual software licenses provide the customer with a functional license to our products and their related revenues are recognized when the customer receives entitlement to the software. For the technical services provided to customers in connection with the software license, including hosting services related to perpetual licenses, we recognize revenue upon delivery of the services. As the invoices are based on each day of service, this is directly linked to the transfer of benefit to the customer. If the contract contains a single performance obligation, the entire transaction price is allocated to the single performance obligation. We enter into certain contracts that have multiple performance obligations, one or more of which may be delivered subsequent to the delivery of other performance obligations. These performance obligations 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. We allocate the transaction price based on the estimated relative standalone selling prices of the promised products or services underlying each performance obligation. We determine standalone selling prices based on the price at which the performance obligation is sold separately. If the standalone selling price is not observable through past transactions, we estimate the standalone selling price taking into account available information such as market conditions and internally approved standard pricing discounts related to the performance obligations. Generally, our performance obligations include print and digital textbooks and instructional materials, trade books, reference materials, formative assessment materials and multimedia instructional programs; licenses to book rights and content; access to hosted content; and services including professional development, consulting and training. Our contracts may also contain software performance obligations including perpetual and subscription based licenses and software maintenance and support services. |
Accounts Receivable | Accounts Receivable Accounts receivable include amounts billed and currently due from customers and are recorded net of allowances for doubtful accounts and reserves for returns. In the normal course of business, we extend credit to customers that satisfy predefined criteria. 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. |
Contract Assets | Contract Assets Contract assets include unbilled amounts where revenue is recognized over time as the services are delivered to the customer based on the extent of progress towards completion and revenue recognized exceeds the amount billed to the customer, and right of payment is not subject to the passage of time. Amounts may not exceed their net realizable value. Contract assets are included in prepaid expenses and other assets on our consolidated balance sheets. |
Deferred Commissions | Deferred Commissions Our incremental direct costs of obtaining a contract, which consist of sales commissions, are deferred and amortized over the period of contract performance. Applying the practical expedient, we recognize sales commission expense when incurred if the amortization period of the assets that we otherwise would have recognized is one year or less. At December 31, 2018 and January 1, 2018, we had $22.6 million and $24.0 million of deferred commissions, respectively. We had $10.5 million of amortization expense related to deferred commissions during the year ended December 31, 2018. These costs are included in selling and administrative expenses. |
Deferred Revenue | Deferred Revenue Our contract liabilities consist of advance payments and billings in excess of revenue recognized and are classified as deferred revenue on our consolidated balance sheets. Our contract assets and liabilities are accounted for and presented on a net basis as either a contract asset or contract liability at the end of each reporting period. We classify deferred revenue as current or noncurrent based on the timing of when we expect to recognize revenue. In order to determine revenue recognized in the period from contract liabilities, we first allocate revenue to the individual contract liability balance outstanding at the beginning of the period until the revenue exceeds that balance. If additional advances are received on those contracts in subsequent periods, we assume all revenue recognized in the reporting period first applies to the beginning contract liability as opposed to a portion applying to the new advances for the period. |
Advertising Costs and Sample Expenses | Advertising Costs and Sample Expenses Advertising costs are charged to selling and administrative expenses as incurred. Advertising costs were $12.0 million, $12.4 million and $11.0 million for the years ended December 31, 2018, 2017 and 2016, 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 |
Accounts Receivable | Accounts Receivable Accounts receivable are recorded net of allowances for doubtful accounts and reserves for 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 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 past usage and the expected future demand. The expected future demand of a program or title is determined by the copyright year, the previous year’s usage, the subsequent years’ 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 Film and media Revenue earned |
Capitalized Internal-Use Software and Software Development Costs | Capitalized Internal-Use Capitalized internal-use external-use 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 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 We review internal-use |
Pre-publication Costs | Pre-publication 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 Pre-publication sum-of-the-years-digits pre-publication pre-publication pre-publication Amortization expense related to pre-publication For the year ended December 31, 2017, an impairment charge for pre-publication pre-publication |
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 tradenames) are not amortized, but are reviewed at least annually for impairment or earlier, if an indication of impairment exists. 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. We have the option of first assessing qualitative factors to determine whether it is necessary to perform the current two-step two-step Recoverability of goodwill can also be 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 the Education reporting unit by using various valuation techniques including an evaluation of our market capitalization and peer company multiples. With regard to indefinite-lived intangible assets, which includes the Houghton Mifflin Harcourt tradename at December 31, 2018 and 2017, the recoverability is evaluated using a one-step process whereby we determine the fair value by asset and then compare it to its carrying value to determine if the asset is impaired. We estimate the fair value based by preparing a relief-from-royalty discounted cash flow analysis using forwarding looking revenue projections. The significant assumptions used in discounted cash flow analysis include: future net sales, a long-term growth rate, a royalty rate and a discount rate used to present value future cash flows and the terminal value of the Education reporting unit. The discount rate is based on the weighted-average cost of capital method at the date of the evaluation. We completed our annual goodwill impairment tests as of October 1, 2018 and 2017. In 2018 and 2017, we used income and market valuation approaches to determine the fair value of the Education reporting unit. The fair value of the Education reporting unit substantially exceeded its carrying value as of the evaluation dates. No goodwill was deemed to be impaired for the years ended December 31, 2018, 2017 and 2016, respectively. We completed our annual indefinite-lived intangible assets impairment tests as of October 1, 2018 and 2017. No indefinite-lived intangible assets were deemed to be impaired for the years ended December 31, 2018 and 2017. We recorded non-cash |
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 |
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 an undiscounted 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. Additionally, advances are evaluated periodically to determine if they are expected to be recovered on a title-by-title basis, with consideration given to the other titles in the author’s portfolio also earning against the outstanding advance. 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 payable and author advances, 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. We had accounted for the tax effects of The Tax Cuts and Jobs Act, enacted on December 22, 2017, on a provisional basis See Note 8 to the consolidated financial statements for further detail. |
Stock-Based Compensation | Stock-Based Compensation Certain employees and directors have been granted stock options, restricted stock and restricted stock units in our 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 the current market price based on the target value of the award for restricted stock and restricted stock units, the Monte Carlo simulation for market-based restricted stock units and the Black-Scholes valuation model for stock options. We recognize stock-based compensation expense over the awards requisite service period on a straight-line basis for time based stock options, restricted stock and restricted stock units and on a graded basis for restricted stock and restricted stock units that are contingent on the achievement of performance conditions. |
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, unrealized gains and losses on short-term investments and gains and losses on derivative instruments. |
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 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 loss, 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. During 2018, 2017 and 2016, our interest rate swaps were designated as hedges and qualify for hedge accounting. Accordingly, we recorded an unrealized gain of $3.5 million and $4.9 million, and an unrealized loss of $2.5 million in our statements of comprehensive loss to account for the changes in fair value of these derivatives during the periods ended December 31, 2018, 2017 and 2016, respectively. The corresponding $2.4 million hedge asset is included within long-term other assets in our consolidated balance sheet as of December 31, 2018. The corresponding $1.2 million and $6.1 million hedge liability is included within long-term other liabilities in our consolidated balance sheet as of December 31, 2017 and 2016, respectively. Our foreign exchange forward contracts did not qualify for hedge accounting because we did not contemporaneously document our hedging strategy upon entering into the hedging arrangements. |
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, 2018, 2017 and 2016. |
Recent Accounting Standards | Recent Accounting Standards Recent accounting pronouncements, not included below, are not expected to have a material impact on our consolidated financial position and results of operations. Recently Issued Accounting Standards In January 2017, the issued updated guidance to simplify the test for goodwill impairment by the elimination of Step 2 in the determination on whether goodwill should be considered impaired. The annual assessments are still required to be completed. The guidance will be effective in 2020, with early adoption permitted. We do not expect that the adoption of this guidance will have a material impact on our consolidated financial statements. In February 2016, the FASB issued guidance that primarily requires lessees to recognize most leases on their balance sheets but record expenses on their income statements in a manner similar to current accounting. For lessors, the guidance modifies the classification criteria and the accounting for sales-type and direct financing leases. We have identified appropriate changes to our accounting policies, information technology systems, business processes, and related internal controls to support recognition and disclosure requirements under the new guidance. We are currently in the process of evaluating the impact of this guidance on our consolidated financial statements and footnote disclosures, but we believe the adoption of this guidance will have a material impact on our consolidated balance sheets due to the recognition of the lease rights and obligations related to our office space leases as assets and liabilities. The impact on our results of operations and cash flows is not expected to be material. Recently Adopted Accounting Standards In May 2014, the FASB issued new guidance related to revenue recognition. This new accounting standard replaced most current U.S. GAAP guidance on this topic and eliminated most 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 an entity 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. Entities may adopt the new standard either retrospectively to all periods presented in the financial statements (the full retrospective method) or as a cumulative-effect adjustment as of the date of adoption (modified retrospective method) in the year of adoption without applying to comparative periods financial statements. We adopted the guidance on January 1, 2018 applying the modified retrospective method. The new standard superseded substantially all existing revenue recognition guidance. It impacts the revenue recognition for a significant number of our contracts, in addition to our business processes and our information technology systems. As a result, we established a cross-functional coordinated team to implement the new revenue recognition standard. We have implemented changes to our systems, processes and internal controls to meet the standard’s reporting and disclosure requirements. Refer to “Adoption of New Revenue Recognition Accounting Standard” in this Note 2 for a detailed description of the impact of the adoption of the revenue standard. In March 2017, the FASB issued guidance to improve the presentation of net periodic pension cost and net periodic post-retirement benefit cost. The changes to the guidance required employers to report the service cost component in the same line item as other compensation costs arising from services rendered by employees during the reporting period. The other components of net benefit costs have been presented in the income statement separately from the service cost and outside of a subtotal of income from operations. The guidance became effective January 1, 2018 and the adoption of the guidance did not have a material impact on our consolidated financial statements. In November 2016, the FASB issued guidance on restricted cash, which required amounts generally described as restricted cash and restricted cash equivalents be included with cash and cash equivalents when reconciling the total beginning and ending amounts for the periods shown on the statement of cash flows. The guidance became effective January 1, 2018 using a retrospective transition method to each period presented. The adoption of the guidance did not have a material impact on our consolidated financial statements. In August 2016, the FASB issued a guidance update to classifications of certain cash receipts and cash payments on the Statement of Cash Flows with the objective of reducing the existing diversity in practice. This updated guidance addresses the following eight specific cash flow issues: debt prepayment or debt extinguishment costs; settlement of zero-coupon In March 2016, the FASB issued guidance that changes the accounting for certain aspects of share-based payments to employees. The guidance requires the recognition of the income tax effects of awards in the income statement when the awards vest or are settled, thus eliminating additional paid-in paid-in |
Significant Accounting Polici_3
Significant Accounting Policies (Tables) | 12 Months Ended |
Dec. 31, 2018 | |
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 Film and media Revenue earned |
Accounting Standards Update 2014-09 [Member] | |
Summary of Cumulative Effect of Changes Made to Consolidated Balance Sheets | The cumulative effect of the changes made to our consolidated balance sheets at January 1, 2018 were as follows: December 31, 2017 Adjustments due to Adoption January 1, 2018 Assets Accounts receivable, net $ 192,569 $ (1,092 ) $ 191,477 Contract assets (1) — 1,092 1,092 Deferred commissions — 24,040 24,040 Liabilities Deferred revenue (current and long-term) $ 683,808 $ (28,671 ) $ 655,137 Stockholders’ equity Accumulated deficit (2) $ (3,521,527 ) $ 52,711 $ (3,468,816 ) (1) Contract assets are included in prepaid expenses and other assets on our consolidated balance sheets. (2) The adoption resulted in the write off of a portion of a deferred tax asset for deferred revenue. However, due to our valuation allowance position, there is no net tax effect on accumulated deficit as the valuation allowance will also be reversed commensurate to the reduction in the deferred tax asset. |
Summary of Impact of Adoption on Consolidated Balance Sheets and Statements of Operations and Cash Flows | In accordance with the new revenue standard requirements, the disclosure of the impact of adoption on our consolidated balance sheets, statements of operations and cash flows were as follows: December 31, 2018 As Reported Balances Without Adoption Effect of Change Higher / (Lower) Assets Accounts receivable, net $ 203,574 $ 203,648 $ (74 ) Contract assets 74 — 74 Deferred commissions 22,635 — 22,635 Liabilities Deferred revenue (current and long-term) $ 647,444 $ 693,678 $ (46,234 ) Stockholders’ equity Accumulated deficit $ (3,562,971 ) $ (3,625,345 ) $ (62,374 ) Year Ended December 31, 2018 As Reported Balances Without Adoption Effect of Change Higher / (Lower) Net sales $ 1,322,417 $ 1,304,854 $ 17,563 Selling and administrative 649,295 647,891 1,404 Operating loss (90,525 ) (106,684 ) 16,159 Loss from continuing operations (131,860 ) (148,019 ) 16,159 Income from discontinued operations, net of tax 43,302 43,302 — Net loss (94,155 ) (110,314 ) 16,159 The adoption resulted in offsetting shifts in cash flows through net loss within cash flows from operating activities for deferred commissions, which are included within other assets, and deferred revenue consistent with the effects on our consolidated statements of operations as noted in the table above. The adoption had no impact on our overall cash flows from operating, investing or financing activities. Year Ended December 31, 2018 As Reported Balances Without Adoption Effect of Change Higher / (Lower) Cash flows from operating activities Net loss $ (94,155 ) $ (110,314 ) $ 16,159 Adjustments to reconcile net loss to net cash provided by operating activities Other assets 3,908 2,504 1,404 Deferred revenue (7,692 ) 9,871 (17,563 ) Net cash provided by operating activities—continuing operations 104,084 104,084 — Net cash provided by operating activities—discontinued operations 10,831 10,831 — Net cash provided by operating activities 114,915 114,915 — |
Discontinued Operations (Tables
Discontinued Operations (Tables) | 12 Months Ended |
Dec. 31, 2018 | |
Discontinued Operations and Disposal Groups [Abstract] | |
Summary of Amounts Included in Discontinued Operations | Selected financial information of the Riverside Business included in discontinued operations is as follows: For the Year Ended December 31, 2018 2017 2016 Net sales $ 56,562 $ 80,482 $ 80,707 Costs 37,714 54,718 55,304 Amortization 4,954 7,630 8,752 Impairment charge for intangible assets — — 9,000 Earnings from discontinued operations before taxes 13,894 18,134 7,651 Income tax expense (benefit) 1,061 984 (13,936 ) Earnings from discontinued operations, net of tax $ 12,833 $ 17,150 $ 21,587 |
Schedule of Major Categories of Assets and Liabilities Held for Sale | The major categories of assets and liabilities of the Riverside Business included in assets of discontinued operations and liabilities of discontinued operations are as follows: December 31, Accounts receivable, net $ 8,511 Inventories 3,950 Prepaid expenses and other assets 28 Property, plant, and equipment, net 5,247 Pre-publication 10,900 Goodwill 67,000 Other intangible assets, net 28,125 Total assets of discontinued operations $ 123,761 Accounts payable $ 692 Royalties payable 6,194 Salaries, wages, and commissions payable 2,133 Deferred revenue 10,398 Other liabilities 5,289 Total liabilities of discontinued operations $ 24,706 |
Balance Sheet Information (Tabl
Balance Sheet Information (Tables) | 12 Months Ended |
Dec. 31, 2018 | |
Organization, Consolidation and Presentation of Financial Statements [Abstract] | |
Summary of Gross Unrealized Losses and Market Value of Available for Sale Securities | The following table shows the gross unrealized losses and market value of our available-for-sale securities with unrealized losses that are not deemed to be other-than-temporary, aggregated by investment category: December 31, 2018 Amortized Unrealized Unrealized Estimated Short-term investments: U.S. Government and agency securities $ 49,824 $ 31 $ (22 ) $ 49,833 December 31, 2017 Amortized Unrealized Unrealized Estimated Short-term investments: U.S. Government and agency securities $ 86,467 $ 25 $ (43 ) $ 86,449 |
Accounts Receivable | Accounts receivable at December 31, 2018 and 2017 consisted of the following: 2018 2017 Accounts receivable $ 224,306 $ 215,657 Allowance for bad debt (2,173 ) (2,508 ) Reserve for book returns (18,559 ) (20,580 ) $ 203,574 $ 192,569 |
Schedule of Inventories | Inventories at December 31, 2018 and 2017 consisted of the following: 2018 2017 Finished goods $ 162,890 $ 141,925 Raw materials 21,319 8,769 Inventories $ 184,209 $ 150,694 |
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, 2018 and 2017 were as follows: 2018 2017 Land and land improvements $ 4,923 $ 4,923 Building and building equipment 9,415 9,867 Machinery and equipment 11,630 31,234 Capitalized software 563,314 522,826 Leasehold improvements 22,171 22,784 Film and media 14,920 8,056 626,373 599,690 Less: Accumulated depreciation and amortization (500,448 ) (451,031 ) Property, plant, and equipment, net $ 125,925 $ 148,659 |
Summary of Changes in Contract Assets and Contract Liabilities | The following table presents changes in contract assets and contract liabilities during the year ended December 31, 2018: December 31, 2018 January 1, 2018 $ Change % Change Contract assets $ 74 $ 1,092 $ (1,018 ) NM Contract liabilities (deferred revenue) 647,444 655,137 (7,693 ) (1.2 )% |
Summary of Net Sales Recognised from Changes in Contract Asset and Contract Liabilities | During the year ended December 31, 2018, we recognized the following net sales as a result of changes in the contract asset and contract liabilities balances: Year Ended December 31, 2018 Net sales recognized in the period from: Amounts included in contract liabilities at the beginning of the period $ 220,769 |
Goodwill and Other Intangible_2
Goodwill and Other Intangible Assets (Tables) | 12 Months Ended |
Dec. 31, 2018 | |
Goodwill and Intangible Assets Disclosure [Abstract] | |
Schedule of Goodwill and Other Intangible Assets | Goodwill and other intangible assets consisted of the following: December 31, 2018 December 31, 2017 Cost Accumulated Amortization Total Cost Accumulated Amortization Total Goodwill $ 716,073 $ — $ 716,073 $ 716,073 $ — $ 716,073 Trademarks and tradenames: indefinite-lived $ 161,000 $ — $ 161,000 $ 161,000 $ — $ 161,000 Trademarks and tradenames: definite-lived 164,130 (28,087 ) 136,043 164,130 (17,226 ) 146,904 Publishing rights 1,180,000 (1,112,869 ) 67,131 1,180,000 (1,078,156 ) 101,844 Customer related and other 444,640 (287,922 ) 156,718 444,640 (271,850 ) 172,790 Other intangible assets, net $ 1,949,770 $ (1,428,878 ) $ 520,892 $ 1,949,770 $ (1,367,232 ) $ 582,538 |
Estimated Aggregate Amortization Expense Expected for Intangibles | Trademarks and Tradenames Publishing Rights Other Intangible Assets 2019 $ 10,862 $ 26,557 $ 13,444 2020 10,862 20,056 9,594 2021 10,862 11,642 9,320 2022 10,862 7,569 9,119 2023 10,862 1,307 8,939 Thereafter 81,733 — 106,302 $ 136,043 $ 67,131 $ 156,718 |
Debt (Tables)
Debt (Tables) | 12 Months Ended |
Dec. 31, 2018 | |
Debt Disclosure [Abstract] | |
Long-Term Debt | Our debt consisted of the following: December 31, 2018 December 31, 2017 $800,000 term loan due May 29, 2021 interest payable quarterly (net of discount and issuance costs) $ 763,649 $ 768,194 Less: Current portion of long-term debt 8,000 8,000 Total long-term debt, net of discount and issuance costs $ 755,649 $ 760,194 Revolving credit facility $ — $ — |
Long-Term Debt Repayments Due | Long-term debt repayments due in each of the next five years and thereafter is as follows: Year 2019 8,000 2020 8,000 2021 756,000 $ 772,000 |
Restructuring, Severance and _2
Restructuring, Severance and Other Charges (Tables) | 12 Months Ended |
Dec. 31, 2018 | |
Summary of Total Costs and Estimates of Costs | T Type of Cost Year Ended Year Ended Year Ended Total Amount Restructuring charges: Severance and termination benefits $ — $ 16,206 $ — $ 16,206 Office space consolidation (2) 4,657 4,979 — 9,636 Implementation and impairment (3) — 16,590 — 16,990 $ 4,657 $ 37,775 $ — $ 42,832 (1) All restructuring charges are included within Corporate and Other. (2) During the year ended December 31, 2017, we recorded a non-cash write-off (3) During the year ended December 31, 2017, we recorded a non-cash |
Summary of Restructuring Liabilities Comprised of Accruals for Termination Benefits and Office Space Consolidation | The following is a rollforward of our liabilities associated with the 2017 Restructuring Plan: 2018 Restructuring Charges Cash payments Restructuring Severance and termination benefits $ 4,306 $ — $ (3,936 ) $ 370 Office space consolidation 3,663 4,657 (1,947 ) 6,373 $ 7,969 $ 4,657 $ (5,883 ) $ 6,743 2017 Restructuring Charges Cash payments Restructuring Severance and termination benefits $ — $ 16,206 $ (11,900 ) $ 4,306 Office space consolidation — 4,256 (593 ) 3,663 Implementation — 7,472 (7,472 ) — $ — $ 27,934 $ (19,965 ) $ 7,969 |
Components of Severance/Restructuring and Other Charges | A summary of the significant components of the severance/restructuring and other charges, which are not allocated to our segments and included in Corporate and Other, is as follows: 2018 Severance/ Severance/ Cash payments Severance/ Severance costs $ 341 $ 6,821 $ (5,742 ) $ 1,420 Other accruals 1,299 — (1,029 ) 270 $ 1,640 $ 6,821 $ (6,771 ) $ 1,690 2017 Severance/ Severance/ Cash payments Severance/ Severance costs $ 6,417 $ 353 $ (6,429 ) $ 341 Other accruals 4,604 (176 ) (3,129 ) 1,299 $ 11,021 $ 177 $ (9,558 ) $ 1,640 2016 Severance/ Severance/ Cash payments Severance/ Severance costs $ 1,455 $ 12,350 $ (7,388 ) $ 6,417 Other accruals 5,251 3,300 (3,947 ) 4,604 $ 6,706 $ 15,650 $ (11,335 ) $ 11,021 |
Income Taxes (Tables)
Income Taxes (Tables) | 12 Months Ended |
Dec. 31, 2018 | |
Income Tax Disclosure [Abstract] | |
Components of Loss Before Taxes by Jurisdiction | For the Year Ended December 31, 2018 For the Year Ended December 31, 2017 For the Year Ended December 31, 2016 U.S. $ (134,884 ) $ (172,199 ) $ (360,689 ) Foreign 3,024 443 2,988 Loss before taxes $ (131,860 ) $ (171,756 ) $ (357,701 ) |
Total Income Tax by Jurisdiction | Total income taxes by jurisdiction are as follows: For the Year For the Year For the Year Income tax expense (benefit) U.S. $ 3,701 $ (51,106 ) $ (52,741 ) Foreign 1,896 (313 ) 1,185 $ 5,597 $ (51,419 ) $ (51,556 ) |
Components of (Benefit) Expense for Income Taxes Attributable to Loss from Continuing Operations | Significant components of the (benefit) expense for income taxes attributable to loss from continuing operations consist of the following: For the Year For the Year For the Year Current Foreign $ 1,562 $ (259 ) $ 437 U.S.—Federal (63 ) 0 92 U.S.—State and other (1,042 ) (1,914 ) 1,496 Total current 457 (2,173 ) 2,025 Deferred Foreign 334 (54 ) 748 U.S.—Federal 2,329 (54,666 ) (49,772 ) U.S.—State and other 2,477 5,474 (4,557 ) Total deferred 5,140 (49,246 ) (53,581 ) Income tax (benefit) expense $ 5,597 $ (51,419 ) $ (51,556 ) |
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 Statutory rate 21.0 % 35.0 % 35.0 % Permanent items (2.6 ) (3.5 ) (0.8 ) Release of uncertain tax positions — (0.2 ) 0.3 Foreign rate differential (0.1 ) (0.2 ) 0.2 State and local taxes 6.8 17.1 5.9 State and local net operating loss re-establishment — — 3.2 Increase in valuation allowance (26.6 ) (68.5 ) (30.2 ) Change in valuation allowance due to 2017 Tax Act — (43.9 ) — Impact of federal rate change on deferred tax assets and liabilities due to 2017 Tax Act — 85.7 — Tax credits (2.7 ) 1.2 0.8 Adoption of 2016 Accounting Standard related to accounting changes for certain aspects of share-based payments to employees (1) — 7.2 — Effective tax rate (4.2 )% 29.9 % 14.4 % |
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: 2018 2017 Tax assets related to Net operating loss and other carryforwards $ 228,364 $ 229,595 Returns reserve/inventory expense 39,113 40,687 Pension benefits 8,294 6,977 Postretirement benefits 4,338 6,285 Deferred interest (2) 261,647 280,246 Deferred revenue 118,450 122,192 Stock-based compensation 5,415 3,992 Deferred compensation 5,830 5,872 Research and Development 6,038 335 Other, net 9,064 8,540 Valuation allowance (562,392 ) (571,653 ) $ 124,161 $ 133,068 2018 2017 Tax liabilities related to Indefinite-lived intangible assets (76,715 ) (62,593 ) Definite-lived intangible assets (30,882 ) (45,644 ) Depreciation and amortization expense (34,210 ) (43,426 ) Other, net (6,170 ) (81 ) (147,977 ) (151,744 ) Net deferred tax liabilities $ (23,816 ) $ (18,676 ) (1) In March 2016, the FASB issued guidance that changes the accounting for certain aspects of shared-based payments to employees. The guidance requires the recognition of the income tax effects of awards in the income statement when the awards vest or are settled, thus eliminating additional paid-in capital pools. The guidance became effective January 1, 2017 which resulted in the recognition of $12.3 million of previously unrecorded additional paid-in capital net operating losses at that time. The additional net operating losses were offset by an increase in the valuation allowance, accordingly no net income tax benefit was recognized as a result of the adoption. (2) 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. At December 31, 2018 and 2017, we had gross deferred interest deductions totaling $975.2 million and $1,042.1 million, respectively. The disallowed interest is able to be carried forward indefinitely and utilized in future years pursuant to IRC Section 163(j). A full valuation allowance has been provided against deferred tax assets, excluding $3.3 million of foreign deferred tax assets which are expected to be realized, net of deferred tax liabilities resulting from indefinite-lived intangibles. |
Deferred Tax Assets and Liabilities Reflected on Consolidated Balance Sheets | 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: 2018 2017 Non-current deferred tax assets $ 3,259 $ 3,593 Non-current deferred tax liabilities (27,075 ) (22,269 ) $ (23,816 ) $ (18,676 ) |
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, 2015 $ 16,311 Reductions based on tax positions related to the prior year (855 ) Additions based on tax positions related to the current year 52 Balance at December 31, 2016 15,508 Reductions based on tax positions related to the prior year Additions based on tax positions related to the current year 172 Balance at December 31, 2017 15,680 Reductions based on tax positions related to the prior year — Additions based on tax positions related to the prior year — Balance at December 31, 2018 $ 15,680 |
Retirement and Postretirement_2
Retirement and Postretirement Benefit Plans (Tables) | 12 Months Ended |
Dec. 31, 2018 | |
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, 2018 and 2017: 2018 2017 ABO at end of period $ 162,096 $ 176,444 Change in PBO PBO at beginning of period $ 176,444 $ 177,300 Interest cost on PBO 5,300 5,528 Actuarial (gain) loss (9,061 ) 6,206 Benefits paid (10,587 ) (12,590 ) PBO at end of period $ 162,096 $ 176,444 Change in plan assets Fair market value at beginning of period $ 152,311 $ 148,344 Actual return (9,052 ) 16,477 Company contribution 104 80 Benefits paid (10,587 ) (12,590 ) Fair market value at end of period $ 132,776 $ 152,311 Unfunded status $ (29,320 ) $ (24,133 ) |
Amounts Recognized in Consolidated Balance Sheets | Amounts recognized in the consolidated balance sheets at December 31, 2018 and 2017 consist of: 2018 2017 Noncurrent liabilities $ (29,320 ) $ (24,133 ) |
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, 2018 and 2017 consist of: 2018 2017 PBO $ 162,096 $ 176,444 ABO 162,096 176,444 Fair value of plan assets 132,776 152,311 |
Weighted Average Assumptions used to Determine Benefit Obligations | Weighted average assumptions used to determine the benefit obligations (both PBO and ABO) at December 31, 2018 and 2017 are: 2018 2017 Discount rate 4.2 % 3.6 % 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, 2018 and 2017 is shown below. Asset Class 2018 Percentage in Each Asset Class 2017 Percentage in Each Asset Class Equity 30.2 % 32.9 % Fixed income 57.6 55.3 Real estate investment trust 7.1 6.5 Other 5.1 5.3 100.0 % 100.0 % |
Summary of Fair Value of Pension Plan Assets by Asset Category | The fair value of our pension plan assets by asset category at December 31 were as follows: December 31, 2018 Not subject to leveling (1) Cash and cash equivalents $ 85 $ 85 Equity securities U.S. equity 23,909 23,909 Non-US equity 11,497 11,497 Emerging markets equity 4,666 4,666 Fixed income Government bonds 19,903 19,903 Corporate bonds 40,524 40,524 Mortgage-backed securities 7,248 7,248 Asset-backed securities 2,773 2,773 Commercial mortgage-backed securities 1,900 1,900 International fixed income 4,161 4,161 Alternatives Real estate 9,448 9,448 Hedge funds 6,662 6,662 $ 132,776 $ 132,776 December 31, 2017 Not subject to leveling (1) Cash and cash equivalents $ 835 $ 835 Equity securities U.S. equity 29,749 29,749 Non-US equity 14,306 14,306 Emerging markets equity 6,004 6,004 Fixed income Government bonds 24,203 24,203 Corporate bonds 42,909 42,909 Mortgage-backed securities 8,621 8,621 Asset-backed securities 1,782 1,782 Commercial mortgage-backed securities 2,070 2,070 International fixed income 4,738 4,738 Alternatives Real estate 9,848 9,848 Hedge funds 7,246 7,246 $ 152,311 $ 152,311 |
Expected Future Benefit Payments | The following benefit payments, which reflect expected future service, are expected to be paid: Fiscal Year Ended Postretirement Benefit Plan 2019 $ 1,512 2020 1,459 2021 1,409 2022 1,355 2023 1,308 2024-2028 5,778 |
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, 2018 and 2017. 2018 2017 Change in APBO APBO at beginning of period $ 21,903 $ 24,012 Service cost (benefits earned during the period) 128 134 Interest cost on APBO 672 771 Employee contributions 139 89 Plan amendments — — Actuarial (gain) (5,184 ) (1,248 ) Benefits paid (1,846 ) (1,855 ) APBO at end of period $ 15,812 $ 21,903 Change in plan assets Fair market value at beginning of period $ — $ — Company contributions 1,707 1,766 Employee contributions 139 89 Benefits paid (1,846 ) (1,855 ) Fair market value at end of period $ — $ — Unfunded status $ (15,812 ) $ (21,903 ) |
Amounts not yet Reflected in Net Periodic Benefit Cost and Recognized in Accumulated Other Comprehensive Income | 2018 2017 Net gain (loss) $ 3,856 $ (1,328 ) Prior service (cost) credit (467 ) 222 Accumulated other comprehensive income (loss) $ 3,389 $ (1,106 ) |
One Percentage Point Changes in Assumed Health Care Cost | 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 2017 and 2016 for the postretirement medical plan: 2018 2017 One-percentage-point increase Effect on total of service and interest cost components $ 4 $ 7 Effect on postretirement benefit obligation 238 117 One-percentage-point decrease Effect on total of service and interest cost components (4 ) (6 ) Effect on postretirement benefit obligation (208 ) (104 ) |
Summary of Change in Other Comprehensive Income | The following table presents the change in other comprehensive income for the year ended December 31, 2018 related to our pension and postretirement obligations. Pension P lans Postretirement Benefit Plan Total Sources of change in accumulated other comprehensive loss Net (gain) loss arising during the period $ 7,970 $ (5,184 ) $ 2,786 Amortization of prior service credit — 690 690 Amortization of net (gain) loss (1,420 ) — (1,420 ) Total accumulated other comprehensive income recognized during the period $ 6,550 $ (4,494 ) $ 2,056 |
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. Pension P lans Postretirement Benefit Plan Prior service credit (cost) $ — $ (42 ) Net gain (loss) (1,028 ) 164 $ (1,028 ) $ 122 |
Pension Plans [Member] | |
Net Periodic Benefit Cost Components | Net periodic pension (income) cost includes the following components: For the Year Ended December 31, 2018 For the Year Ended December 31, 2017 For the Year Ended December 31, 2016 Interest cost on projected benefit obligation $ 5,300 $ 5,528 $ 5,224 Expected return on plan assets (7,985 ) (9,263 ) (9,150 ) Amortization of net loss 1,420 804 50 Net pension (income) expense recognized for the period $ (1,265 ) $ (2,931 ) $ (3,876 ) |
Significant Actuarial Assumptions used to Determine Net Periodic Pension Cost | Significant actuarial assumptions used to determine net periodic pension cost at December 31, 2018, 2017 and 2016 are: 2018 2017 2016 Discount rate 3.6 % 4.0 % 4.3 % Increase in future compensation N/A N/A N/A Expected long-term rate of return on assets 5.5 % 6.3 % 6.3 % |
Expected Future Benefit Payments | The following benefit payments are expected to be paid. Fiscal Year Ended Pension 2019 $ 12,892 2020 12,783 2021 14,612 2022 13,186 2023 13,149 2024–2028 64,237 |
Other Post Retirement Plans [Member] | |
Amounts Recognized in Consolidated Balance Sheets | Amounts for postretirement benefits accrued in the consolidated balance sheets at December 31, 2018 and 2017 consist of: 2018 2017 Current liabilities $ (1,512 ) $ (1,618 ) Noncurrent liabilities (14,300 ) (20,285 ) Net amount recognized $ (15,812 ) $ (21,903 ) |
Weighted Average Assumptions used to Determine Benefit Obligations | Weighted average actuarial assumptions used to determine APBO at year-end December 31, 2018 and 2017 are: 2018 2017 Discount rate 4.2 % 3.6 % Health care cost trend rate assumed for next year 6.1 % 6.3 % Rate to which the cost trend rate is assumed to decline (ultimate trend rate) 4.5 % 4.5 % Year that the rate reaches the ultimate trend rate 2038 2038 |
Net Periodic Benefit Cost Components | Net periodic postretirement benefit cost (income) included the following components: 2018 2017 2016 Service cost $ 128 $ 134 $ 163 Interest cost on APBO 672 771 876 Amortization of unrecognized prior service cost (690 ) (1,339 ) (1,339 ) Amortization of net loss — 13 86 Net periodic postretirement benefit expense (income) $ 110 $ (421 ) $ (214 ) |
Significant Actuarial Assumptions used to Determine Net Periodic Pension Cost | Significant actuarial assumptions used to determine postretirement benefit cost at December 31, 2018, 2017 and 2016 are: 2018 2017 2016 Discount rate 3.6 % 4.1 % 4.4 % Health care cost trend rate assumed for next year 6.3 % 6.6 % 6.9 % 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 2038 2038 2038 |
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 for pension plans and postretirement plan and recognized in accumulated other comprehensive income at December 31, 2018 and 2017 consist of: 2018 2017 Net actuarial gain (loss) $ (36,779 ) $ (34,691 ) Accumulated other comprehensive loss $ (36,779 ) $ (34,691 ) |
Stock-Based Compensation (Table
Stock-Based Compensation (Tables) | 12 Months Ended |
Dec. 31, 2018 | |
Summary of Option Activity | The following table summarizes option activity for certain employees in our stock options: Number of Shares Weighted Average Exercise Price Balance at December 31, 2017 3,760,098 $ 13.43 Granted 137,363 5.25 Exercised — — Forfeited (409,249 ) 14.50 Balance at December 31, 2018 3,488,212 $ 12.98 Vested and expected to vest at December 31, 2018 3,376,551 $ 13.02 Exercisable at December 31, 2018 2,135,401 $ 13.63 |
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 Year Ended December 31, 2018 For the Year Ended December 31, 2017 For the Year Ended December 31, 2016 Expected term (years) (a) 4.75 4.75 4.75 Expected dividend yield 0.00% 0.00% 0.00% Expected volatility (b) 35.30% 25.22%-25.50% 23.86%-24.26% Risk-free interest rate (c) 2.84% 1.94%-1.99% 1.20%-1.31% (a) The expected term is the number of years that we estimate that options will be outstanding prior to exercise. We have used the simplified method for estimating the expected term as we do not have sufficient stock option exercise experience to support a reasonable estimate of the expected term. The simplified method represents the best estimate of the expected term. (b) Historically, we have estimated volatility for options granted based on the historical volatility for a group of companies (including our own) believed to be a representative peer group, and were selected based on industry and market capitalization. During 2018, we have estimated volatility based on our historical volatility. (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 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 and restricted stock units: Restricted Stock Restricted Stock Units Numbers of Units Weighted Average Grant Date Fair Value Numbers of Units Weighted Average Grant Date Fair Value Balance at December 31, 2017 273,655 $ 20.10 1,808,957 $ 13.37 Granted — — 2,365,322 6.83 Vested (9,619 ) 20.10 (498,806 ) 13.47 Forfeited (264,036 ) 20.10 (305,697 ) 9.03 Balance at December 31, 2018 — $ — 3,369,776 $ 9.16 |
Employees Stock Purchase Plan [Member] | |
Schedule of Share Repurchase Activity | Information related to shares issued or to be issued in connection with the ESPP based on employee contributions and the range of purchase prices is as follows: December 31, 2 018 December 31, 2017 Shares issued or to be issued 167,991 165,145 Range of purchase prices $ 6.50 $ 7.91 9.22 |
Fair Value Measurements (Tables
Fair Value Measurements (Tables) | 12 Months Ended |
Dec. 31, 2018 | |
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, 2018 and 2017: 2018 Quoted Prices in Active Markets for Identical Assets (Level 1) Significant Other Observable Inputs (Level 2) Valuation Technique Financial assets Money market funds $ 228,587 $ 228,587 $ — (a) U.S. treasury securities 24,939 24,939 — (a) U.S. agency securities 24,894 — 24,894 (a) Interest rate derivatives 2,382 — 2,382 (a) $ 280,802 $ 253,526 $ 27,276 Financial liabilities Foreign exchange derivatives $ 534 $ — $ 534 (a) $ 534 $ — $ 534 2017 Quoted Prices in Active Markets for Identical Assets (Level 1) Significant Other Observable Inputs (Level 2) Valuation Technique Financial assets Money market funds $ 115,464 $ 115,464 $ — (a) U.S. treasury securities 16,065 16,065 — (a) U.S. agency securities 70,384 — 70,384 (a) Foreign exchange derivatives 351 — 351 (a) $ 202,264 $ 131,529 $ 70,735 Financial liabilities Interest rate derivatives $ 1,159 $ — $ 1,159 (a) $ 1,159 $ — $ 1,159 |
Summary of Non-financial 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 2017: 2017 Significant (Level 3) Total Valuation Nonfinancial assets Property, plant and equipment $ — $ — $ 9,119 (c ) Pre-publication costs — — 3,980 (c ) $ — $ — $ 13,099 |
Summary of Carrying Amounts and Estimated Fair Market Values of Debt | The following table presents the carrying amounts and estimated fair market values of our debt at December 31, 2018 and 2017. 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, 2018 December 31, 2017 Carrying Estimated Carrying Estimated Debt Term Loan $ 763,649 $ 691,102 $ 768,194 $ 710,579 |
Commitments and Contingencies (
Commitments and Contingencies (Tables) | 12 Months Ended |
Dec. 31, 2018 | |
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 2019 $ 32,694 2020 26,889 2021 26,118 2022 24,549 2023 27,469 Thereafter 171,203 Total minimum lease payments $ 308,922 Total future minimal rentals under subleases $ 10,607 |
Stockholders' Equity (Tables)
Stockholders' Equity (Tables) | 12 Months Ended |
Dec. 31, 2018 | |
Equity [Abstract] | |
Accumulated Other Comprehensive Loss | Accumulated other comprehensive loss consisted of the following at December 31, 2018, 2017 and 2016: 2018 2017 2016 Net change in pension and benefit plan liabilities $ (41,557 ) $ (39,501 ) $ (41,235 ) Foreign currency translation adjustments (5,909 ) (5,753 ) (5,862 ) Unrealized loss on short-term investments (99 ) (108 ) (90 ) Net change in unrealized loss on derivative instruments 2,381 (1,160 ) (6,108 ) $ (45,184 ) $ (46,522 ) $ (53,295 ) |
Share Repurchase Activity | The Company’s share repurchase activity during 2016 was as follows: Year Ended December 31, 2016 Cost of repurchases $ 55,017 Shares repurchased 2,903,566 Average cost per share $ 18.95 |
Net Loss Per Share (Tables)
Net Loss Per Share (Tables) | 12 Months Ended |
Dec. 31, 2018 | |
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 Ended December 31, 2018 For the Year Ended December 31, 2017 For the Year Ended December 31, 2016 Numerator Loss from continuing operations $ (137,457 ) $ (120,337 ) $ (306,145 ) Earnings from discontinued operations, net of tax 12,833 17,150 21,587 Gain on sale of discontinued operations, net of tax 30,469 — — Income from discontinued operations, net of tax 43,302 17,150 21,587 Net loss attributable to common stockholders $ (94,155 ) $ (103,187 ) $ (284,558 ) Denominator Weighted average shares outstanding Basic 123,444,943 122,949,064 122,418,474 Diluted 123,444,943 122,949,064 122,418,474 Net loss per share attributable to common stockholders Basic and diluted: Continuing operations $ (1.11 ) $ (0.98 ) $ (2.50 ) Discontinued operations 0.35 0.14 0.18 Net loss $ (0.76 ) $ (0.84 ) $ (2.32 ) |
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 attributable to common stockholders during the periods, and therefore excluded from the computation of diluted EPS: For the Year Ended December 31, 2018 For the Year Ended December 31, 2017 For the Year Ended December 31, 2016 Stock options 3,406,171 2,977,550 5,322,266 Restricted stock units 2,793,680 1,429,816 715,504 |
Segment Reporting (Tables)
Segment Reporting (Tables) | 12 Months Ended |
Dec. 31, 2018 | |
Segment Reporting [Abstract] | |
Consolidated Net Income (Loss) | Although we exclude these amounts from segment Adjusted EBITDA from continuing operations, they are included in reported consolidated net loss and are included in the reconciliation below. As a result of the sale of the Riverside Business, the results of the Riverside Business are no longer presented within continuing operations. Accordingly, the segment disclosures for the Education reportable segment has been recast for all periods to exclude the results of the Riverside Business. These changes had no impact on the previously reported financial results for the Trade reportable segment. (in thousands) Year Ended December 31, Education Trade Corporate/ 2018 Net sales $ 1,122,689 $ 199,728 $ — Segment Adjusted EBITDA 210,604 21,942 (40,418 ) 2017 Net sales $ 1,146,453 $ 180,576 $ — Segment Adjusted EBITDA 223,941 12,096 (50,758 ) 2016 Net sales $ 1,126,363 $ 165,615 $ — Segment Adjusted EBITDA 194,632 6,255 (48,582 ) |
Summary of Net Sales | The following table disaggregates our net sales by major source: Year Ended December 31, 2018 (in thousands) Education Trade Consolidated Core solutions (1) $ 538,166 $ — $ 538,166 Extensions businesses (2) 584,523 — 584,523 Trade products — 199,728 199,728 Net sales $ 1,122,689 $ 199,728 $ 1,322,417 Year Ended December 31, 2017 (in thousands) Education Trade Consolidated Core solutions (1) $ 595,097 $ — $ 595,097 Extensions businesses (2) 551,356 — 551,356 Trade products — 180,576 180,576 Net sales $ 1,146,453 $ 180,576 $ 1,327,029 Year Ended December 31, 2016 (in thousands) Education Trade Consolidated Core solutions (1) $ 602,862 $ — $ 602,862 Extensions businesses (2) 523,501 — 523,501 Trade products — 165,615 165,615 Net sales $ 1,126,363 $ 165,615 $ 1,291,978 (1) Comprehensive solutions primarily for reading, math, science and social studies programs. (2) Primarily consists of our Heinemann brand, intervention, supplemental and professional services. |
Consolidated Statements of Operations | Reconciliation of Segment Adjusted EBITDA to the consolidated statements of operations is as follows: (in thousands) Years Ended December 31, 2018 2017 2016 Total Segment Adjusted EBITDA $ 192,128 $ 185,279 $ 152,305 Interest expense (45,680 ) (42,805 ) (39,181 ) Interest income 2,550 1,338 518 Depreciation expense (75,116 ) (71,049 ) (74,467 ) Amortization expense—film asset (6,057 ) — — Amortization expense (170,903 ) (195,394 ) (209,592 ) Non-cash charges—stock compensation (13,248 ) (10,728 ) (10,491 ) Non-cash charges—loss on derivative instruments (1,374 ) 1,366 (614 ) Non-cash charges—asset impairment charges — (3,980 ) (130,205 ) Purchase accounting adjustments — — (5,116 ) Fees, expenses or charges for equity offerings, debt or acquisitions/dispositions (2,883 ) (1,464 ) (1,123 ) 2017 Restructuring Plan (4,657 ) (37,775 ) — Restructuring/Integration — — (14,364 ) Severance, separation costs and facility closures (6,821 ) (177 ) (15,371 ) Legal reimbursement (settlement) — 3,633 (10,000 ) Gain on sale of assets 201 — — Loss before taxes (131,860 ) (171,756 ) (357,701 ) (Provision) benefit for income taxes (5,597 ) 51,419 51,556 Net loss from continuing operations $ (137,457 ) $ (120,337 ) $ (306,145 ) |
Segment Information | Segment information as of December 31, 2018 and 2017 is as follows: (in thousands) 2018 2017 Total assets—Education segment $ 1,999,481 $ 2,121,647 Total assets—Trade Publishing segment 167,510 173,395 Total assets—Corporate and Other 328,133 268,549 Total consolidated assets $ 2,495,124 $ 2,563,591 |
Schedule of Long-Lived Assets | The following represents long-lived assets (property, plant, and equipment) outside of the United States, which are substantially in Ireland. All other long-lived assets are located in the United States. (in thousands) 2018 2017 Long-lived assets—International $ 64 $ 7,593 |
Schedule of Net Sales by Geographic Region | The following is a schedule of net sales by geographic region: (in thousands) Year Ended December 31, 2018 Net sales—U.S. $ 1,249,568 Net sales—International 72,849 Total net sales $ 1,322,417 Year Ended December 31, 2017 Net sales—U.S. $ 1,254,956 Net sales—International 72,073 Total net sales $ 1,327,029 Year Ended December 31, 2016 Net sales—U.S. $ 1,203,855 Net sales—International 88,123 Total net sales $ 1,291,978 |
Valuation and Qualifying Acco_2
Valuation and Qualifying Accounts (Tables) | 12 Months Ended |
Dec. 31, 2018 | |
SEC Schedule, 12-09, Valuation and Qualifying Accounts [Abstract] | |
Valuation and Qualifying Accounts | Balance at Beginning of Year Net Charges Utilization of Allowances Balance at End of Year 2018 Allowance for doubtful accounts $ 2,508 $ 128 $ (463 ) $ 2,173 Reserve for returns 20,580 36,395 (38,416 ) 18,559 Reserve for royalty advances 103,606 17,301 (3,110 ) 117,797 Deferred tax valuation allowance 571,653 (7,667 ) (1,594 ) 562,392 2017 Allowance for doubtful accounts $ 3,463 $ 400 $ (1,355 ) $ 2,508 Reserve for returns 18,671 43,682 (41,773 ) 20,580 Reserve for royalty advances 85,526 17,861 219 103,606 Deferred tax valuation allowance 759,887 (187,480 ) (754 ) 571,653 2016 Allowance for doubtful accounts $ 8,323 $ 734 $ (5,594 ) $ 3,463 Reserve for returns 23,889 54,058 (59,276 ) 18,671 Reserve for royalty advances 69,978 16,270 (722 ) 85,526 Deferred tax valuation allowance 664,730 98,949 (3,792 ) 759,887 |
Quarterly Results of Operatio_2
Quarterly Results of Operations (Unaudited) (Tables) | 12 Months Ended |
Dec. 31, 2018 | |
Quarterly Financial Information Disclosure [Abstract] | |
Quarterly Results of Operations | Three Months Ended March 31, June 30, September 30, December 31, 2018: Net sales $ 199,759 $ 357,365 $ 516,255 $ 249,038 Gross profit 64,315 162,827 278,175 91,663 Operating income (loss) (92,905 ) (14,747 ) 91,838 (74,711 ) Income (loss) from continuing operations, net of tax (105,886 ) (29,089 ) 83,908 (86,390 ) Income from discontinued operations, net of tax 4,575 5,817 2,441 30,469 Net income (loss) (101,311 ) (23,272 ) 86,349 (55,921 ) Net income (loss) per share attributable to common stockholders Basic: Continuing operations $ (0.86 ) $ (0.24 ) $ 0.68 $ (0.70 ) Discontinued operations 0.04 0.05 0.02 0.25 Net loss $ (0.82 ) $ (0.19 ) $ 0.70 $ (0.45 ) Diluted: Continuing operations $ (0.86 ) $ (0.24 ) $ 0.68 $ (0.70 ) Discontinued operations 0.04 0.05 0.02 0.25 Net loss $ (0.82 ) $ (0.19 ) $ 0.70 $ (0.45 ) 2017: Net sales $ 203,685 $ 373,393 $ 516,206 $ 233,745 Gross profit 63,702 165,803 271,053 71,807 Operating income (loss) (100,494 ) (33,837 ) 88,373 (89,183 ) Income (loss) from continuing operations, net of tax (123,861 ) (48,666 ) 88,636 (36,446 ) Income from discontinued operations, net of tax 3,203 1,799 1,870 10,278 Net income (loss) (120,658 ) (46,867 ) 90,506 (26,168 ) Net income (loss) per share attributable to common stockholders Basic: Continuing operations $ (1.01 ) $ (0.40 ) $ 0.72 $ (0.29 ) Discontinued operations 0.03 0.02 0.02 0.08 Net loss $ (0.98 ) $ (0.38 ) $ 0.74 $ (0.21 ) Diluted: Continuing operations $ (1.01 ) $ (0.40 ) $ 0.72 $ (0.29 ) Discontinued operations 0.03 0.02 0.01 0.08 Net loss $ (0.98 ) $ (0.38 ) $ 0.73 $ (0.21 ) |
Basis of Presentation - Additio
Basis of Presentation - Additional Information (Detail) Student in Millions, Educators in Millions | 12 Months Ended | ||
Dec. 31, 2018StudentCountryEducators | Dec. 31, 2017 | Dec. 31, 2016 | |
Collaborative Arrangements and Non-collaborative Arrangement Transactions [Line Items] | |||
Services provided, number of students | Student | 50 | ||
Services provided, number of countries | Country | 150 | ||
Services provided, number of educators | Educators | 3 | ||
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% |
Seasonal Concentration Risk [Member] | Consolidated Net Sales [Member] | Education [Member] | |||
Collaborative Arrangements and Non-collaborative Arrangement Transactions [Line Items] | |||
Consolidated net sales, realized percentage | 85.00% |
Significant Accounting Polici_4
Significant Accounting Policies - Additional Information (Detail) - USD ($) | 12 Months Ended | |||
Dec. 31, 2018 | Dec. 31, 2017 | Dec. 31, 2016 | Jan. 01, 2018 | |
Significant Accounting Policies [Line Items] | ||||
Advertising costs | $ 12,000,000 | $ 12,400,000 | $ 11,000,000 | |
Impairment charges | 3,980,000 | 130,205,000 | ||
Net change in unrealized gain (loss) on derivative financial instruments | 3,541,000 | 4,948,000 | (2,467,000) | |
Total hedge liability included within long-term other liabilities | 1,200,000 | |||
Deferred commissions | 22,635,000 | $ 24,040,000 | ||
Amortization expense related to deferred commissions | 10,500,000 | |||
Interest Rate Hedging [Member] | ||||
Significant Accounting Policies [Line Items] | ||||
Net change in unrealized gain (loss) on derivative financial instruments | 3,500,000 | 4,900,000 | (2,500,000) | |
Total hedge liability included within long-term other liabilities | 1,200,000 | 1,200,000 | 6,100,000 | |
Total hedge asset included within long-term other assets | $ 2,400,000 | 2,400,000 | ||
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 | $ 0 | 0 | 130,200,000 | |
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 period of acquisition costs | 7 years | |||
Amortization of intangible assets, cost of sales | $ 109,300,000 | 119,900,000 | 121,900,000 | |
Impairment charges | $ 0 | $ 4,000,000 | $ 0 |
Significant Accounting Polici_5
Significant Accounting Policies and Estimates - Summary of Cumulative Effect of Changes Made to Consolidated Balance Sheets (Detail) - USD ($) $ in Thousands | Dec. 31, 2018 | Jan. 01, 2018 | Dec. 31, 2017 |
Assets | |||
Accounts receivable, net | $ 203,574 | $ 191,477 | $ 192,569 |
Contract assets | 74 | 1,092 | |
Deferred commissions | 22,635 | 24,040 | |
Liabilities | |||
Deferred revenue (current and long-term) | 647,444 | 655,137 | |
Stockholders' equity | |||
Accumulated deficit | (3,562,971) | $ (3,468,816) | (3,521,527) |
Calculated under Revenue Guidance in Effect before Topic 606 [Member] | Accounting Standards Update 2014-09 [Member] | |||
Assets | |||
Accounts receivable, net | 203,648 | 192,569 | |
Liabilities | |||
Deferred revenue (current and long-term) | 693,678 | 683,808 | |
Stockholders' equity | |||
Accumulated deficit | (3,625,345) | (3,521,527) | |
Difference between Revenue Guidance in Effect before and after Topic 606 [Member] | Accounting Standards Update 2014-09 [Member] | |||
Assets | |||
Accounts receivable, net | (74) | (1,092) | |
Contract assets | 74 | 1,092 | |
Deferred commissions | 22,635 | 24,040 | |
Liabilities | |||
Deferred revenue (current and long-term) | (46,234) | (28,671) | |
Stockholders' equity | |||
Accumulated deficit | $ (62,374) | $ 52,711 |
Significant Accounting Polici_6
Significant Accounting Policies and Estimates - Summary of Impact of Adoption on Consolidated Balance Sheet and Statement of Operations and Cash Flows (Detail) - USD ($) $ in Thousands | 3 Months Ended | 12 Months Ended | ||||||||||
Dec. 31, 2018 | Sep. 30, 2018 | Jun. 30, 2018 | Mar. 31, 2018 | Dec. 31, 2017 | Sep. 30, 2017 | Jun. 30, 2017 | Mar. 31, 2017 | Dec. 31, 2018 | Dec. 31, 2017 | Dec. 31, 2016 | Jan. 01, 2018 | |
Assets | ||||||||||||
Accounts receivable, net | $ 203,574 | $ 192,569 | $ 203,574 | $ 192,569 | $ 191,477 | |||||||
Contract assets | 74 | 74 | 1,092 | |||||||||
Deferred commissions | 22,635 | 22,635 | 24,040 | |||||||||
Liabilities | ||||||||||||
Deferred revenue (current and long-term) | 647,444 | 647,444 | 655,137 | |||||||||
Stockholders' equity | ||||||||||||
Accumulated deficit | (3,562,971) | (3,521,527) | (3,562,971) | (3,521,527) | $ (3,468,816) | |||||||
Net sales | 249,038 | $ 516,255 | $ 357,365 | $ 199,759 | 233,745 | $ 516,206 | $ 373,393 | $ 203,685 | 1,322,417 | 1,327,029 | $ 1,291,978 | |
Selling and administrative | 649,295 | 636,326 | 681,170 | |||||||||
Operating loss | (74,711) | 91,838 | (14,747) | (92,905) | (89,183) | 88,373 | (33,837) | (100,494) | (90,525) | (135,141) | (322,677) | |
Loss from continuing operations | (131,860) | (171,756) | (357,701) | |||||||||
Income from discontinued operations, net of tax | 30,469 | 2,441 | 5,817 | 4,575 | 10,278 | 1,870 | 1,799 | 3,203 | 43,302 | 17,150 | 21,587 | |
Net loss | (55,921) | $ 86,349 | $ (23,272) | $ (101,311) | (26,168) | $ 90,506 | $ (46,867) | $ (120,658) | (94,155) | (103,187) | (284,558) | |
Cash flows from operating activities | ||||||||||||
Net loss | (94,155) | (103,187) | (284,558) | |||||||||
Adjustments to reconcile net loss to net cash provided by operating activities | ||||||||||||
Other assets | 3,908 | (10,548) | 6,673 | |||||||||
Deferred revenue | (7,692) | (13,500) | 39,249 | |||||||||
Net cash provided by operating activities—continuing operations | 104,084 | 104,748 | 111,785 | |||||||||
Net cash provided by operating activities—discontinued operations | 10,831 | 30,382 | 31,966 | |||||||||
Net cash provided by operating activities | 114,915 | 135,130 | $ 143,751 | |||||||||
Calculated under Revenue Guidance in Effect before Topic 606 [Member] | Accounting Standards Update 2014-09 [Member] | ||||||||||||
Assets | ||||||||||||
Accounts receivable, net | 203,648 | 192,569 | 203,648 | 192,569 | ||||||||
Liabilities | ||||||||||||
Deferred revenue (current and long-term) | 693,678 | 683,808 | 693,678 | 683,808 | ||||||||
Stockholders' equity | ||||||||||||
Accumulated deficit | (3,625,345) | (3,521,527) | (3,625,345) | (3,521,527) | ||||||||
Net sales | 1,304,854 | |||||||||||
Selling and administrative | 647,891 | |||||||||||
Operating loss | (106,684) | |||||||||||
Loss from continuing operations | (148,019) | |||||||||||
Income from discontinued operations, net of tax | 43,302 | |||||||||||
Net loss | (110,314) | |||||||||||
Cash flows from operating activities | ||||||||||||
Net loss | (110,314) | |||||||||||
Adjustments to reconcile net loss to net cash provided by operating activities | ||||||||||||
Other assets | 2,504 | |||||||||||
Deferred revenue | 9,871 | |||||||||||
Net cash provided by operating activities—continuing operations | 104,084 | |||||||||||
Net cash provided by operating activities—discontinued operations | 10,831 | |||||||||||
Net cash provided by operating activities | 114,915 | |||||||||||
Difference between Revenue Guidance in Effect before and after Topic 606 [Member] | Accounting Standards Update 2014-09 [Member] | ||||||||||||
Assets | ||||||||||||
Accounts receivable, net | (74) | (1,092) | (74) | (1,092) | ||||||||
Contract assets | 74 | 1,092 | 74 | 1,092 | ||||||||
Deferred commissions | 22,635 | 24,040 | 22,635 | 24,040 | ||||||||
Liabilities | ||||||||||||
Deferred revenue (current and long-term) | (46,234) | (28,671) | (46,234) | (28,671) | ||||||||
Stockholders' equity | ||||||||||||
Accumulated deficit | $ (62,374) | $ 52,711 | (62,374) | $ 52,711 | ||||||||
Net sales | 17,563 | |||||||||||
Selling and administrative | 1,404 | |||||||||||
Operating loss | 16,159 | |||||||||||
Loss from continuing operations | 16,159 | |||||||||||
Net loss | 16,159 | |||||||||||
Cash flows from operating activities | ||||||||||||
Net loss | 16,159 | |||||||||||
Adjustments to reconcile net loss to net cash provided by operating activities | ||||||||||||
Other assets | 1,404 | |||||||||||
Deferred revenue | $ (17,563) |
Significant Accounting Polici_7
Significant Accounting Policies - Summary of Estimated Useful Lives of Property, Plant, and Equipment (Detail) | 12 Months Ended |
Dec. 31, 2018 | |
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 |
Film and Media [Member] | |
Property, Plant and Equipment [Line Items] | |
Property plant and equipment, estimated useful life | Revenue earned |
Discontinued Operations - Addit
Discontinued Operations - Additional Information (Detail) - USD ($) | Oct. 02, 2018 | Sep. 12, 2018 | Dec. 31, 2018 | Dec. 31, 2018 | Oct. 01, 2018 | Dec. 31, 2017 |
Income Statement, Balance Sheet and Additional Disclosures by Disposal Groups, Including Discontinued Operations [Line Items] | ||||||
Proceeds from sale of business | $ 140,000,000 | |||||
Riverside Business [Member] | ||||||
Income Statement, Balance Sheet and Additional Disclosures by Disposal Groups, Including Discontinued Operations [Line Items] | ||||||
Cash consideration received | $ 140,000,000 | |||||
Proceeds from sale of business | $ 135,000,000 | |||||
Gain on sale of business | $ 30,500,000 | |||||
Riverside Business [Member] | Discontinued Operations, Held-for-sale [Member] | ||||||
Income Statement, Balance Sheet and Additional Disclosures by Disposal Groups, Including Discontinued Operations [Line Items] | ||||||
Goodwill | $ 67,000,000 | $ 67,000,000 | ||||
Goodwill impairment, discontinued operation | $ 0 |
Discontinued Operations - Summa
Discontinued Operations - Summary of Amounts Included in Discontinued Operations (Detail) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2018 | Dec. 31, 2017 | Dec. 31, 2016 | |
Income Statement, Balance Sheet and Additional Disclosures by Disposal Groups, Including Discontinued Operations [Line Items] | |||
Impairment charge for intangible assets | $ 3,980 | $ 130,205 | |
Earnings from discontinued operations, net of tax | $ 12,833 | 17,150 | 21,587 |
Riverside Business [Member] | |||
Income Statement, Balance Sheet and Additional Disclosures by Disposal Groups, Including Discontinued Operations [Line Items] | |||
Net sales | 56,562 | 80,482 | 80,707 |
Costs | 37,714 | 54,718 | 55,304 |
Amortization | 4,954 | 7,630 | 8,752 |
Impairment charge for intangible assets | 9,000 | ||
Earnings from discontinued operations before taxes | 13,894 | 18,134 | 7,651 |
Income tax expense (benefit) | 1,061 | 984 | (13,936) |
Earnings from discontinued operations, net of tax | $ 12,833 | $ 17,150 | $ 21,587 |
Discontinued Operations - Sched
Discontinued Operations - Schedule of Major Categories of Assets and Liabilities Held for Sale (Detail) - Riverside Business [Member] - Discontinued Operations, Held-for-sale [Member] - USD ($) $ in Thousands | Sep. 12, 2018 | Dec. 31, 2017 |
Income Statement, Balance Sheet and Additional Disclosures by Disposal Groups, Including Discontinued Operations [Line Items] | ||
Accounts receivable, net | $ 8,511 | |
Inventories | 3,950 | |
Prepaid expenses and other assets | 28 | |
Property, plant, and equipment, net | 5,247 | |
Pre-publication costs, net | 10,900 | |
Goodwill | $ 67,000 | 67,000 |
Other intangible assets, net | 28,125 | |
Total assets of discontinued operations | 123,761 | |
Accounts payable | 692 | |
Royalties payable | 6,194 | |
Salaries, wages, and commissions payable | 2,133 | |
Deferred revenue | 10,398 | |
Other liabilities | 5,289 | |
Total liabilities of discontinued operations | $ 24,706 |
Balance Sheet Information - Sum
Balance Sheet Information - Summary of Gross Unrealized Losses and Market Value of Available for Sale Securities (Detail) - Short-term Investments [Member] - U.S. Government and Agency Securities [Member] - USD ($) $ in Thousands | Dec. 31, 2018 | Dec. 31, 2017 |
Schedule of Available-for-sale Securities [Line Items] | ||
Amortized cost | $ 49,824 | $ 86,467 |
Unrealized gains | 31 | 25 |
Unrealized losses | (22) | (43) |
Estimated fair value | $ 49,833 | $ 86,449 |
Balance Sheet Information - Acc
Balance Sheet Information - Accounts Receivable (Detail) - USD ($) $ in Thousands | Dec. 31, 2018 | Dec. 31, 2017 |
Accounts Receivable [Line Items] | ||
Accounts receivable | $ 224,306 | $ 215,657 |
Accounts Receivable, Net, Total | 203,574 | 192,569 |
Allowance for Bad Debt [Member] | ||
Accounts Receivable [Line Items] | ||
Allowance for bad debt | (2,173) | (2,508) |
Reserve for Book Returns [Member] | ||
Accounts Receivable [Line Items] | ||
Allowance for bad debt | $ (18,559) | $ (20,580) |
Balance Sheet Information - Add
Balance Sheet Information - Additional Information (Detail) - USD ($) $ in Thousands | 12 Months Ended | |||
Dec. 31, 2018 | Dec. 31, 2017 | Dec. 31, 2016 | Jan. 01, 2018 | |
Balance Sheet Details [Line Items] | ||||
Depreciation | $ 75,116 | $ 71,049 | $ 74,467 | |
Property, plant, and equipment acquired under capital lease agreements | 700 | 6,900 | ||
Amortization of Intangible Assets | 34,713 | $ 46,238 | 61,351 | |
Increase in net contract liabilities from increase in contract liabilities | 6,700 | |||
Increase in contract liabilities from non-satisfaction of performance obligations | 7,700 | |||
Aggregate amount of transaction price allocated to remaining performance obligations | $ 694,100 | |||
Percentage of transaction recognized | 80.00% | |||
Deferred commissions | $ 22,635 | $ 24,040 | ||
Amortization of deferred commissions | 10,500 | |||
Film and Media [Member] | ||||
Balance Sheet Details [Line Items] | ||||
Amortization of Intangible Assets | $ 6,100 | |||
Maximum [Member] | ||||
Balance Sheet Details [Line Items] | ||||
Period of duration for recognition of transaction | 3 years | |||
Minimum [Member] | ||||
Balance Sheet Details [Line Items] | ||||
Period of duration for recognition of transaction | 1 year | |||
Accounts Receivable [Member] | Customer Concentration Risk [Member] | ||||
Balance Sheet Details [Line Items] | ||||
Concentration Risk, percentage | 10.00% | 10.00% | ||
Property, Plant, and Equipment [Member] | ||||
Balance Sheet Details [Line Items] | ||||
Depreciation | $ 81,200 | $ 71,000 | $ 74,500 | |
2,019 | 200 | |||
2,020 | 200 | |||
2,021 | $ 200 |
Balance Sheet Information - Sch
Balance Sheet Information - Schedule of Inventories (Detail) - USD ($) $ in Thousands | Dec. 31, 2018 | Dec. 31, 2017 |
Inventory Disclosure [Abstract] | ||
Finished goods | $ 162,890 | $ 141,925 |
Raw materials | 21,319 | 8,769 |
Inventories | $ 184,209 | $ 150,694 |
Balance Sheet Information - Bal
Balance Sheet Information - Balances of Major Classes of Assets and Accumulated Depreciation and Amortization (Detail) - USD ($) $ in Thousands | Dec. 31, 2018 | Dec. 31, 2017 |
Offsetting [Abstract] | ||
Land and land improvements | $ 4,923 | $ 4,923 |
Building and building equipment | 9,415 | 9,867 |
Machinery and equipment | 11,630 | 31,234 |
Capitalized software | 563,314 | 522,826 |
Leasehold improvements | 22,171 | 22,784 |
Film and media | 14,920 | 8,056 |
Property, Plant and Equipment, Gross, Total | 626,373 | 599,690 |
Less: Accumulated depreciation and amortization | (500,448) | (451,031) |
Property, plant, and equipment, net | $ 125,925 | $ 148,659 |
Balance Sheet Information - S_2
Balance Sheet Information - Summary of Changes in Contract Assets and Contract Liabilities (Detail) - USD ($) $ in Thousands | 12 Months Ended | |
Dec. 31, 2018 | Jan. 01, 2018 | |
Investments, Debt and Equity Securities [Abstract] | ||
Contract with customer assets | $ 74 | $ 1,092 |
Contract with customer assets change | $ (1,018) | |
Contract with customer assets percentage change | 0.00% | |
Contract with customer liabilities | $ 647,444 | $ 655,137 |
Contract with customer liabilities change | $ (7,693) | |
Contract with customer liabilities percentage change | (1.20%) |
Balance Sheet Information - S_3
Balance Sheet Information - Summary of Net Sales Recognised from Changes in Contract Asset and Contract Liabilities (Detail) $ in Thousands | 12 Months Ended |
Dec. 31, 2018USD ($) | |
Net sales recognized in the period from: | |
Amounts included in contract liabilities at the beginning of the period | $ 220,769 |
Goodwill and Other Intangible_3
Goodwill and Other Intangible Assets - Schedule of Goodwill and Other Intangible Assets (Detail) - USD ($) $ in Thousands | Dec. 31, 2018 | Dec. 31, 2017 |
Finite-Lived Intangible Assets [Line Items] | ||
Cost | $ 1,949,770 | $ 1,949,770 |
Accumulated Amortization | (1,428,878) | (1,367,232) |
Total | 520,892 | 582,538 |
Goodwill | 716,073 | 716,073 |
Trademarks and Trade Names [Member] | ||
Finite-Lived Intangible Assets [Line Items] | ||
Trademarks and tradenames indefinite-lived | 161,000 | 161,000 |
Cost | 164,130 | 164,130 |
Accumulated Amortization | (28,087) | (17,226) |
Total | 136,043 | 146,904 |
Publishing Rights [Member] | ||
Finite-Lived Intangible Assets [Line Items] | ||
Cost | 1,180,000 | 1,180,000 |
Accumulated Amortization | (1,112,869) | (1,078,156) |
Total | 67,131 | 101,844 |
Customer Related and Other [Member] | ||
Finite-Lived Intangible Assets [Line Items] | ||
Cost | 444,640 | 444,640 |
Accumulated Amortization | (287,922) | (271,850) |
Total | $ 156,718 | $ 172,790 |
Goodwill and Other Intangible_4
Goodwill and Other Intangible Assets - Additional Information (Detail) - USD ($) | 12 Months Ended | ||
Dec. 31, 2018 | Dec. 31, 2017 | Dec. 31, 2016 | |
Finite-Lived Intangible Assets [Line Items] | |||
Impairment charges | $ 3,980,000 | $ 130,205,000 | |
Amortization expense | $ 34,713,000 | 46,238,000 | 61,351,000 |
Intangible asset recorded on acquisition of remaining intellectual property rights to certain educational content | 2,000,000 | ||
Trademarks and Trade Names [Member] | |||
Finite-Lived Intangible Assets [Line Items] | |||
Changes in carrying amount of goodwill | 67,000,000 | ||
Amortization expense | 8,100,000 | 8,100,000 | 2,000,000 |
Indefinite-lived intangible assets transferred to definite-lived | 109,400,000 | ||
Goodwill And Other Assets [Member] | |||
Finite-Lived Intangible Assets [Line Items] | |||
Impairment charges | 0 | 0 | 130,200,000 |
Other Intangible Assets [Member] | |||
Finite-Lived Intangible Assets [Line Items] | |||
Amortization expense | 61,600,000 | 75,500,000 | 87,700,000 |
Impairment of intangible assets | $ 0 | $ 0 | $ 130,200,000 |
Goodwill and Other Intangible_5
Goodwill and Other Intangible Assets - Estimated Aggregate Amortization Expense (Detail) - USD ($) $ in Thousands | Dec. 31, 2018 | Dec. 31, 2017 |
Trademarks and Trade Names [Member] | ||
Finite-Lived Intangible Assets [Line Items] | ||
2,019 | $ 10,862 | |
2,020 | 10,862 | |
2,021 | 10,862 | |
2,022 | 10,862 | |
2,023 | 10,862 | |
Thereafter | 81,733 | |
Total | 136,043 | $ 146,904 |
Pre-publication Costs [Member] | ||
Finite-Lived Intangible Assets [Line Items] | ||
2,019 | 26,557 | |
2,020 | 20,056 | |
2,021 | 11,642 | |
2,022 | 7,569 | |
2,023 | 1,307 | |
Total | 67,131 | |
Other Intangible Assets [Member] | ||
Finite-Lived Intangible Assets [Line Items] | ||
2,019 | 13,444 | |
2,020 | 9,594 | |
2,021 | 9,320 | |
2,022 | 9,119 | |
2,023 | 8,939 | |
Thereafter | 106,302 | |
Total | $ 156,718 |
Debt - Long-Term Debt (Detail)
Debt - Long-Term Debt (Detail) - USD ($) $ in Thousands | Dec. 31, 2018 | Dec. 31, 2017 |
Debt Instrument [Line Items] | ||
Long term debt | $ 772,000 | |
Less: Current portion of long-term debt | 8,000 | $ 8,000 |
Total long-term debt, net of discount and issuance costs | 755,649 | 760,194 |
Revolving Credit Facility [Member] | ||
Debt Instrument [Line Items] | ||
Revolving credit facility | 0 | 0 |
Term Loan Due May 29, 2021 [Member] | Term Loan [Member] | ||
Debt Instrument [Line Items] | ||
Long term debt | $ 763,649 | $ 768,194 |
Debt - Long-Term Debt (Parenthe
Debt - Long-Term Debt (Parenthetical) (Detail) - Term Loan Due May 29, 2021 [Member] - Term Loan [Member] - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2018 | May 29, 2016 | May 28, 2015 | |
Debt Instrument [Line Items] | |||
Term loan, face amount | $ 800,000 | $ 800,000 | $ 800,000 |
Term loan, due date | May 29, 2021 |
Debt - Long - Term Debt Repayme
Debt - Long - Term Debt Repayments Due (Detail) $ in Thousands | Dec. 31, 2018USD ($) |
Equity Method Investments And Cost Method Investments [Abstract] | |
2,019 | $ 8,000 |
2,020 | 8,000 |
2,021 | 756,000 |
Long term debt | $ 772,000 |
Debt - Additional Information (
Debt - Additional Information (Detail) | Jul. 22, 2015USD ($) | May 29, 2015 | Dec. 31, 2018USD ($) | Dec. 31, 2017USD ($) | Dec. 31, 2016USD ($) | May 29, 2016USD ($) | Aug. 17, 2015USD ($) | May 28, 2015USD ($) |
Debt Instrument [Line Items] | ||||||||
Net change in unrealized gain (loss) on derivative financial instruments | $ 3,541,000 | $ 4,948,000 | $ (2,467,000) | |||||
Total hedge liability included within long-term other liabilities | 1,200,000 | |||||||
Term Loan [Member] | Term Loan Due May 29, 2021 [Member] | ||||||||
Debt Instrument [Line Items] | ||||||||
Term loan, face amount | $ 800,000,000 | $ 800,000,000 | $ 800,000,000 | |||||
Term loan, due date | May 29, 2021 | |||||||
Amount to be repaid quarterly | $ 2,000,000 | |||||||
Repayment frequency | Quarterly | |||||||
Repayment terms | The term loan facility is required to be repaid in quarterly installments of $2.0 million, however, may be prepaid, in whole or in part, at any time, without premium. | |||||||
Percentage of outstanding borrowing commitment issued as discount | 0.50% | |||||||
Debt instrument effective rate | 5.50% | |||||||
Interest Rate Hedging [Member] | ||||||||
Debt Instrument [Line Items] | ||||||||
Aggregate notional amount of derivative instruments | $ 400,000,000 | |||||||
Aggregate notional amount outstanding interest rate | $ 400,000,000 | |||||||
Net change in unrealized gain (loss) on derivative financial instruments | 3,500,000 | 4,900,000 | (2,500,000) | |||||
Total hedge liability included within long-term other liabilities | 1,200,000 | 1,200,000 | $ 6,100,000 | |||||
Total hedge asset included within long-term other assets | $ 2,400,000 | $ 2,400,000 | ||||||
London Interbank Offered Rate (LIBOR) [Member] | Term Loan [Member] | Term Loan Due May 29, 2021 [Member] | ||||||||
Debt Instrument [Line Items] | ||||||||
Debt instrument basis spread | 3.00% | |||||||
London Interbank Offered Rate (LIBOR) [Member] | Minimum [Member] | Term Loan [Member] | Term Loan Due May 29, 2021 [Member] | ||||||||
Debt Instrument [Line Items] | ||||||||
Debt instrument basis spread | 1.00% | |||||||
Revolving Credit Facility [Member] | ||||||||
Debt Instrument [Line Items] | ||||||||
Revolving Credit Facility, maximum borrowing capacity | $ 250,000,000 | |||||||
Financial covenants, description | As of December 31, 2017, the minimum fixed charge coverage ratio covenant under our revolving credit facility was not applicable, due to our level of borrowing availability. The minimum fixed charge coverage ratio, which is only tested in limited situations, is 1.0 to 1.0 through the end of the facility. | |||||||
Revolving Credit Facility [Member] | Minimum [Member] | ||||||||
Debt Instrument [Line Items] | ||||||||
Fixed charge coverage ratio | 1 | 1 | ||||||
Revolving Credit Facility [Member] | Letter Of Credit Subfacility [Member] | ||||||||
Debt Instrument [Line Items] | ||||||||
Revolving Credit Facility, current capacity | $ 50,000,000 | |||||||
Revolving Credit Facility [Member] | Swingline [Member] | ||||||||
Debt Instrument [Line Items] | ||||||||
Revolving Credit Facility, current capacity | 20,000,000 | |||||||
Revolving Credit Facility [Member] | Subfacility [Member] | ||||||||
Debt Instrument [Line Items] | ||||||||
Revolving Credit Facility, maximum borrowing capacity | $ 100,000,000 |
Restructuring, Severance and _3
Restructuring, Severance and Other Charges - Additional Information (Detail) - USD ($) $ in Thousands | 10 Months Ended | 12 Months Ended | ||
Dec. 31, 2018 | Dec. 31, 2018 | Dec. 31, 2017 | Dec. 31, 2016 | |
Restructuring Cost and Reserve [Line Items] | ||||
Restructuring costs | $ 14,364 | |||
Payments for severance cost and office space no longer utilized | $ 6,771 | $ 9,558 | 11,335 | |
Severance/restructuring expense | $ 42,832 | 4,657 | 37,775 | 0 |
Severance and other charges | 6,020 | 6,020 | 6,926 | |
2017 Restructuring Plan [Member] | ||||
Restructuring Cost and Reserve [Line Items] | ||||
Expected total charges | $ 42,800 | 42,800 | ||
Charges estimated to result in future cash outlays | (32,600) | |||
Restructuring costs | 4,700 | 27,900 | ||
Payments for severance cost and office space no longer utilized | 5,883 | 19,965 | ||
Severance/restructuring expense | 4,657 | 27,934 | ||
2017 Restructuring Plan [Member] | Severance and Termination Benefits [Member] | ||||
Restructuring Cost and Reserve [Line Items] | ||||
Restructuring costs | 16,200 | |||
2017 Restructuring Plan [Member] | Implementation of Strategy and Real Estate Consolidation Costs [Member] | ||||
Restructuring Cost and Reserve [Line Items] | ||||
Restructuring costs | 4,700 | 11,700 | ||
Severance Costs [Member] | ||||
Restructuring Cost and Reserve [Line Items] | ||||
Payments for severance cost and office space no longer utilized | 5,742 | 6,429 | 7,388 | |
Severance/restructuring expense | 6,800 | 400 | 12,400 | |
Other Accruals [Member] | ||||
Restructuring Cost and Reserve [Line Items] | ||||
Payments for severance cost and office space no longer utilized | $ 1,029 | 3,129 | 3,947 | |
Severance/restructuring expense | $ 200 | $ 3,300 |
Restructuring, Severance and _4
Restructuring, Severance and Other Charges - Summary of Total Costs (Detail) - USD ($) $ in Thousands | 10 Months Ended | 12 Months Ended | ||
Dec. 31, 2018 | Dec. 31, 2018 | Dec. 31, 2017 | Dec. 31, 2016 | |
Restructuring Cost and Reserve [Line Items] | ||||
Restructuring charges | $ 42,832 | $ 4,657 | $ 37,775 | $ 0 |
Severance and Termination Benefits [Member] | ||||
Restructuring Cost and Reserve [Line Items] | ||||
Restructuring charges | 16,206 | 16,206 | 0 | |
Office Space Consolidation [Member] | ||||
Restructuring Cost and Reserve [Line Items] | ||||
Restructuring charges | 9,636 | $ 4,657 | 4,979 | 0 |
Implementation and Impairment [Member] | ||||
Restructuring Cost and Reserve [Line Items] | ||||
Restructuring charges | $ 16,990 | $ 16,590 | $ 0 |
Restructuring, Severance and _5
Restructuring, Severance and Other Charges - Summary of Total Costs (Parenthetical) (Detail) - 2017 Restructuring Plan [Member] $ in Millions | 12 Months Ended | |
Dec. 31, 2018USD ($)Location | Dec. 31, 2017USD ($) | |
Restructuring Cost and Reserve [Line Items] | ||
Write-off of property, plant, and equipment-restructuring | $ 0.7 | |
Accruals related to vacating office space | $ 4.2 | |
Number of locations vacated | Location | 2 | |
Impairment charge for property, plant, and equipment-restructuring | $ 9.1 |
Restructuring, Severance and _6
Restructuring, Severance and Other Charges - Summary of Restructuring Liabilities Comprised of Accruals for Termination Benefits and Office Space Consolidation (Detail) - USD ($) $ in Thousands | 10 Months Ended | 12 Months Ended | ||
Dec. 31, 2018 | Dec. 31, 2018 | Dec. 31, 2017 | Dec. 31, 2016 | |
Condensed Comprehensive Income [Line Items] | ||||
Severance/restructuring and other accruals, Beginning balance | $ 1,640 | $ 11,021 | $ 6,706 | |
Charges | $ 42,832 | 4,657 | 37,775 | 0 |
Cash payments | (6,771) | (9,558) | (11,335) | |
Severance/restructuring and other accruals, Ending balance | 1,690 | 1,690 | 1,640 | 11,021 |
2017 Restructuring Plan [Member] | ||||
Condensed Comprehensive Income [Line Items] | ||||
Severance/restructuring and other accruals, Beginning balance | 7,969 | |||
Charges | 4,657 | 27,934 | ||
Cash payments | (5,883) | (19,965) | ||
Severance/restructuring and other accruals, Ending balance | 6,743 | 6,743 | 7,969 | |
Severance and Termination Benefits [Member] | ||||
Condensed Comprehensive Income [Line Items] | ||||
Charges | 16,206 | 16,206 | 0 | |
Severance and Termination Benefits [Member] | 2017 Restructuring Plan [Member] | ||||
Condensed Comprehensive Income [Line Items] | ||||
Severance/restructuring and other accruals, Beginning balance | 4,306 | |||
Charges | 16,206 | |||
Cash payments | (3,936) | (11,900) | ||
Severance/restructuring and other accruals, Ending balance | 370 | 370 | 4,306 | |
Office Space Consolidation [Member] | ||||
Condensed Comprehensive Income [Line Items] | ||||
Charges | 9,636 | 4,657 | 4,979 | 0 |
Office Space Consolidation [Member] | 2017 Restructuring Plan [Member] | ||||
Condensed Comprehensive Income [Line Items] | ||||
Severance/restructuring and other accruals, Beginning balance | 3,663 | |||
Charges | 4,657 | 4,256 | ||
Cash payments | (1,947) | (593) | ||
Severance/restructuring and other accruals, Ending balance | 6,373 | 6,373 | 3,663 | |
Implementation and Impairment [Member] | ||||
Condensed Comprehensive Income [Line Items] | ||||
Charges | $ 16,990 | 16,590 | 0 | |
Implementation and Impairment [Member] | 2017 Restructuring Plan [Member] | ||||
Condensed Comprehensive Income [Line Items] | ||||
Severance/restructuring and other accruals, Beginning balance | ||||
Charges | 7,472 | |||
Cash payments | (7,472) | |||
Severance/restructuring and other accruals, Ending balance |
Restructuring, Severance and _7
Restructuring, Severance and Other Charges - Components of Severance/Restructuring and Other Charges (Detail) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2018 | Dec. 31, 2017 | Dec. 31, 2016 | |
Restructuring Cost and Reserve [Line Items] | |||
Severance/restructuring and other accruals, Beginning balance | $ 1,640 | $ 11,021 | $ 6,706 |
Severance/other expense | 6,821 | 177 | 15,371 |
Cash payments | (6,771) | (9,558) | (11,335) |
Severance/restructuring and other accruals, Ending balance | 1,690 | 1,640 | 11,021 |
Severance Costs [Member] | |||
Restructuring Cost and Reserve [Line Items] | |||
Severance/restructuring and other accruals, Beginning balance | 341 | 6,417 | 1,455 |
Severance/other expense | 6,821 | 353 | 12,350 |
Cash payments | (5,742) | (6,429) | (7,388) |
Severance/restructuring and other accruals, Ending balance | 1,420 | 341 | 6,417 |
Other Accruals [Member] | |||
Restructuring Cost and Reserve [Line Items] | |||
Severance/restructuring and other accruals, Beginning balance | 1,299 | 4,604 | 5,251 |
Severance/other expense | (176) | 3,300 | |
Cash payments | (1,029) | (3,129) | (3,947) |
Severance/restructuring and other accruals, Ending balance | $ 270 | $ 1,299 | $ 4,604 |
Income Taxes - Additional Infor
Income Taxes - Additional Information (Detail) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2018 | Dec. 31, 2017 | Dec. 31, 2016 | |
Income Taxes [Line Items] | |||
Net interest expense deductibility limitation | 30.00% | ||
Tax on certain foreign earnings, minimum percentage of foreign subsidiaries tangible assets | 10.00% | ||
Unrecognized tax benefits (excluding interest and penalties) | $ 200 | $ 900 | |
Valuation allowance | $ 562,392 | 571,653 | |
Increase (decrease) in valuation allowance | 9,300 | ||
Continuing operations | 35,100 | ||
Other comprehensive income | $ 500 | ||
Research and Development Credit Carryforwards [Member] | |||
Income Taxes [Line Items] | |||
Loss carryforwards | $ 4,200 | ||
Loss carryforwards, description | Expire between 2032 and 2036 | ||
State and Local Jurisdiction [Member] | |||
Income Taxes [Line Items] | |||
Loss carryforwards | $ 1,234,300 | ||
Loss carryforwards, description | Expire between 2019 and 2038 | ||
Federal Tax [Member] | |||
Income Taxes [Line Items] | |||
Loss carryforwards | $ 611,300 | ||
Loss carryforwards, description | Expire between 2034 and 2037 | ||
Foreign [Member] | |||
Income Taxes [Line Items] | |||
Loss carryforwards | $ 8,400 | ||
Ireland [Member] | Foreign [Member] | |||
Income Taxes [Line Items] | |||
Operating loss Carry forwards | 23,600 | ||
Puerto Rico [Member] | Alternative Minimum Tax Credit Carryforward [Member] | |||
Income Taxes [Line Items] | |||
Loss carryforwards | $ 2,700 | ||
Canada [Member] | |||
Income Taxes [Line Items] | |||
Loss carryforwards, description | Expire between 2033 and 2037 | ||
Canada [Member] | State and Local Jurisdiction [Member] | |||
Income Taxes [Line Items] | |||
Operating loss Carry forwards | $ 1,800 | ||
Canada [Member] | Foreign [Member] | |||
Income Taxes [Line Items] | |||
Operating loss Carry forwards | $ 800 |
Income Taxes - Components of Lo
Income Taxes - Components of Loss Before Taxes by Jurisdiction (Detail) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2018 | Dec. 31, 2017 | Dec. 31, 2016 | |
Schedule Of Components Of Income Loss Before Income Taxes [Line Items] | |||
Loss before taxes | $ (131,860) | $ (171,756) | $ (357,701) |
U.S. [Member] | |||
Schedule Of Components Of Income Loss Before Income Taxes [Line Items] | |||
Loss before taxes | (134,884) | (172,199) | (360,689) |
Foreign [Member] | |||
Schedule Of Components Of Income Loss Before Income Taxes [Line Items] | |||
Loss before taxes | $ 3,024 | $ 443 | $ 2,988 |
Income Taxes - Total Income Tax
Income Taxes - Total Income Tax by Jurisdiction (Detail) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2018 | Dec. 31, 2017 | Dec. 31, 2016 | |
Income tax expense (benefit) | |||
Income tax expense (benefit) | $ 5,597 | $ (51,419) | $ (51,556) |
U.S. [Member] | |||
Income tax expense (benefit) | |||
Income tax expense (benefit) | 3,701 | (51,106) | (52,741) |
Foreign [Member] | |||
Income tax expense (benefit) | |||
Income tax expense (benefit) | $ 1,896 | $ (313) | $ 1,185 |
Income Taxes - Components of (B
Income Taxes - Components of (Benefit) Expense for Income Taxes Attributable to Loss from Continuing Operations (Detail) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2018 | Dec. 31, 2017 | Dec. 31, 2016 | |
Current | |||
Foreign | $ 1,562 | $ (259) | $ 437 |
U.S.-Federal | (63) | 0 | 92 |
U.S.-State and other | (1,042) | (1,914) | 1,496 |
Total current | 457 | (2,173) | 2,025 |
Deferred | |||
Foreign | 334 | (54) | 748 |
U.S.-Federal | 2,329 | (54,666) | (49,772) |
U.S.-State and other | 2,477 | 5,474 | (4,557) |
Total deferred | 5,140 | (49,246) | (53,581) |
Income tax (benefit) expense | $ 5,597 | $ (51,419) | $ (51,556) |
Income Taxes - Reconciliation o
Income Taxes - Reconciliation of Income Tax Rate Computed at Statutory Tax Rate (Detail) | 12 Months Ended | |||
Dec. 31, 2018 | Dec. 31, 2017 | Dec. 31, 2016 | ||
Reconciliation of Effective Income Tax Rate [Line Items] | ||||
Statutory rate | 21.00% | 35.00% | 35.00% | |
Permanent items | (2.60%) | (3.50%) | (0.80%) | |
Release of uncertain tax positions | (0.20%) | 0.30% | ||
Foreign rate differential | (0.10%) | (0.20%) | 0.20% | |
State and local taxes | 6.80% | 17.10% | 5.90% | |
State and local net operating loss re-establishment | 3.20% | |||
Increase in valuation allowance | (26.60%) | (68.50%) | (30.20%) | |
Change in valuation allowance due to 2017 Tax Act | (43.90%) | |||
Impact of federal rate change on deferred tax assets and liabilities due to 2017 Tax Act | 85.70% | |||
Tax credits | (2.70%) | 1.20% | 0.80% | |
Effective tax rate | (4.20%) | 29.90% | 14.40% | |
ASU 2016-09 [Member] | ||||
Reconciliation of Effective Income Tax Rate [Line Items] | ||||
Adoption of 2016 Accounting Standard related to accounting changes for certain aspects of share-based payments to employees | [1] | 7.20% | ||
[1] | In March 2016, the FASB issued guidance that changes the accounting for certain aspects of shared-based payments to employees. The guidance requires the recognition of the income tax effects of awards in the income statement when the awards vest or are settled, thus eliminating additional paid-in capital pools. The guidance became effective January 1, 2017 which resulted in the recognition of $12.3 million of previously unrecorded additional paid-in capital net operating losses at that time. The additional net operating losses were offset by an increase in the valuation allowance, accordingly no net income tax benefit was recognized as a result of the adoption. |
Income Taxes - Components of Ne
Income Taxes - Components of Net Deferred Tax Assets and Liabilities (Detail) - USD ($) $ in Thousands | Dec. 31, 2018 | Dec. 31, 2017 | |
Tax assets related to | |||
Net operating loss and other carryforwards | $ 228,364 | $ 229,595 | |
Returns reserve/inventory expense | 39,113 | 40,687 | |
Pension benefits | 8,294 | 6,977 | |
Postretirement benefits | 4,338 | 6,285 | |
Deferred interest | [1] | 261,647 | 280,246 |
Deferred revenue | 118,450 | 122,192 | |
Stock-based compensation | 5,415 | 3,992 | |
Deferred compensation | 5,830 | 5,872 | |
Research and Development | 6,038 | 335 | |
Other, net | 9,064 | 8,540 | |
Valuation allowance | (562,392) | (571,653) | |
Deferred assets | 124,161 | 133,068 | |
Tax liabilities related to | |||
Indefinite-lived intangible assets | (76,715) | (62,593) | |
Definite-lived intangible assets | (30,882) | (45,644) | |
Depreciation and amortization expense | (34,210) | (43,426) | |
Other, net | (6,170) | (81) | |
Deferred liabilities | (147,977) | (151,744) | |
Net deferred tax liabilities | $ (23,816) | $ (18,676) | |
[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. At December 31, 2018 and 2017, we had gross deferred interest deductions totaling $975.2 million and $1,042.1 million, respectively. The disallowed interest is able to be carried forward indefinitely and utilized in future years pursuant to IRC Section 163(j). A full valuation allowance has been provided against deferred tax assets, excluding $3.3 million of foreign deferred tax assets which are expected to be realized, net of deferred tax liabilities resulting from indefinite-lived intangibles. |
Income Taxes - Components of _2
Income Taxes - Components of Net Deferred Tax Assets and Liabilities (Parenthetical) (Detail) - USD ($) | 12 Months Ended | ||
Dec. 31, 2018 | Dec. 31, 2017 | Dec. 31, 2016 | |
Schedule of Deferred Tax Assets and Liabilities [Line Items] | |||
Income tax benefit | $ 5,597,000 | $ (51,419,000) | $ (51,556,000) |
Gross deferred interest deductions | $ 975,200,000 | $ 1,042,100,000 | |
Foreign deferred tax assets | 3,300,000 | ||
ASU 2016-09 [Member] | |||
Schedule of Deferred Tax Assets and Liabilities [Line Items] | |||
Previously unrecorded additional paid-in capital net operating losses | 12,300,000 | ||
Income tax benefit | $ 0 |
Income Taxes - Deferred Tax Ass
Income Taxes - Deferred Tax Assets and Liabilities Reflected on Consolidated Balance Sheet (Detail) - USD ($) $ in Thousands | Dec. 31, 2018 | Dec. 31, 2017 |
Income Tax Disclosure [Abstract] | ||
Non-current deferred tax assets | $ 3,259 | $ 3,593 |
Non-current deferred tax liabilities | (27,075) | (22,269) |
Net deferred tax liabilities | $ (23,816) | $ (18,676) |
Income Taxes - Reconciliation_2
Income Taxes - Reconciliation of Gross Amount of Unrecognized Tax Benefits (Detail) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2018 | Dec. 31, 2017 | Dec. 31, 2016 | |
Reconciliation of Unrecognized Tax Benefits, Excluding Amounts Pertaining to Examined Tax Returns [Roll Forward] | |||
Beginning balance | $ 15,680 | $ 15,508 | $ 16,311 |
Reductions based on tax positions related to the prior year | (855) | ||
Additions based on tax positions related to the current year | 172 | 52 | |
Additions based on tax positions related to the prior year | |||
Ending balance | $ 15,680 | $ 15,680 | $ 15,508 |
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 ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2018 | Dec. 31, 2017 | Dec. 31, 2016 | |
Change in PBO | |||
APBO at beginning of period | $ 21,903 | $ 24,012 | |
Interest cost on PBO | 672 | 771 | |
Actuarial (gain) loss | (5,184) | (1,248) | |
Benefits paid | (1,846) | (1,855) | |
APBO at end of period | 15,812 | 21,903 | $ 24,012 |
Change in plan assets | |||
Fair market value at beginning of period | 152,311 | ||
Company contribution | 1,707 | 1,766 | |
Benefits paid | (1,846) | (1,855) | |
Fair market value at end of period | 132,776 | 152,311 | |
Unfunded status | (15,812) | (21,903) | |
Pension Plans [Member] | |||
Defined Benefit Plans and Other Postretirement Benefit Plans Table Text Block [Line Items] | |||
ABO at end of period | 162,096 | 176,444 | |
Change in PBO | |||
APBO at beginning of period | 176,444 | 177,300 | |
Interest cost on PBO | 5,300 | 5,528 | 5,224 |
Actuarial (gain) loss | (9,061) | 6,206 | |
Benefits paid | (10,587) | (12,590) | |
APBO at end of period | 162,096 | 176,444 | 177,300 |
Change in plan assets | |||
Fair market value at beginning of period | 152,311 | 148,344 | |
Actual return | (9,052) | 16,477 | |
Company contribution | 104 | 80 | |
Benefits paid | (10,587) | (12,590) | |
Fair market value at end of period | 132,776 | 152,311 | $ 148,344 |
Unfunded status | $ (29,320) | $ (24,133) |
Retirement and Postretirement_4
Retirement and Postretirement Benefit Plans - Amounts Recognized in Consolidated Balance Sheets (Detail) - USD ($) $ in Thousands | Dec. 31, 2018 | Dec. 31, 2017 |
Retirement Benefits [Abstract] | ||
Noncurrent liabilities | $ (29,320) | $ (24,133) |
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 ($) $ in Thousands | Dec. 31, 2018 | Dec. 31, 2017 |
Defined Benefit Plans and Other Postretirement Benefit Plans Table Text Block [Line Items] | ||
Fair value of plan assets | $ 132,776 | $ 152,311 |
Projected Benefit Obligation [Member] | ||
Defined Benefit Plans and Other Postretirement Benefit Plans Table Text Block [Line Items] | ||
PBO | 162,096 | 176,444 |
Accumulated Benefit Obligation [Member] | ||
Defined Benefit Plans and Other Postretirement Benefit Plans Table Text Block [Line Items] | ||
ABO | $ 162,096 | $ 176,444 |
Retirement and Postretirement_6
Retirement and Postretirement Benefit Plans - Weighted Average Assumptions used to Determine Benefit Obligations (Detail) - Pension Plans [Member] | Dec. 31, 2018 | Dec. 31, 2017 |
Defined Benefit Plan Disclosure [Line Items] | ||
Discount rate | 4.20% | 3.60% |
Increase in future compensation | 0.00% | 0.00% |
Retirement and Postretirement_7
Retirement and Postretirement Benefit Plans - Net Periodic Benefit Cost Components (Detail) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2018 | Dec. 31, 2017 | Dec. 31, 2016 | |
Defined Benefit Plans and Other Postretirement Benefit Plans Table Text Block [Line Items] | |||
Service cost | $ 128 | $ 134 | |
Interest cost on APBO | 672 | 771 | |
Amortization of net loss | 900 | 700 | $ (500) |
Pension Plans [Member] | |||
Defined Benefit Plans and Other Postretirement Benefit Plans Table Text Block [Line Items] | |||
Interest cost on APBO | 5,300 | 5,528 | 5,224 |
Expected return on plan assets | (7,985) | (9,263) | (9,150) |
Amortization of net loss | 1,420 | 804 | 50 |
Net pension (income) expense recognized for the period | (1,265) | (2,931) | (3,876) |
Other Post Retirement Plans [Member] | |||
Defined Benefit Plans and Other Postretirement Benefit Plans Table Text Block [Line Items] | |||
Service cost | 128 | 134 | 163 |
Interest cost on APBO | 672 | 771 | 876 |
Amortization of unrecognized prior service cost | (690) | (1,339) | (1,339) |
Amortization of net loss | 13 | 86 | |
Net periodic postretirement benefit expense (income) | $ 110 | $ (421) | $ (214) |
Retirement and Postretirement_8
Retirement and Postretirement Benefit Plans - Significant Actuarial Assumptions used to Determine Net Periodic Pension Cost (Detail) - Pension Plans [Member] | 12 Months Ended | ||
Dec. 31, 2018 | Dec. 31, 2017 | Dec. 31, 2016 | |
Defined Benefit Plans and Other Postretirement Benefit Plans Table Text Block [Line Items] | |||
Discount rate | 3.60% | 4.00% | 4.30% |
Increase in future compensation | 0.00% | 0.00% | 0.00% |
Expected long-term rate of return on assets | 5.50% | 6.30% | 6.30% |
Retirement and Postretirement_9
Retirement and Postretirement Benefit Plans - Additional Information (Detail) - USD ($) | 12 Months Ended | ||
Dec. 31, 2018 | Dec. 31, 2017 | Dec. 31, 2016 | |
Compensation And Retirement Disclosure [Line Items] | |||
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 | $ 7,600,000 | $ 8,000,000 | $ 7,700,000 |
Discretionary contributions | $ 0 | $ 0 | $ 0 |
Maximum [Member] | |||
Compensation And Retirement Disclosure [Line Items] | |||
Defined benefit plan contributions by employer, percentage | 3.00% | ||
Pension Plans [Member] | |||
Compensation And Retirement Disclosure [Line Items] | |||
Long-term rate of return | 5.50% | 6.30% | 6.30% |
Defined benefit plan expected contributions | $ 0 | ||
Pension Plans [Member] | Equity Securities [Member] | |||
Compensation And Retirement Disclosure [Line Items] | |||
Current targeted asset allocation | 34.00% | ||
Pension Plans [Member] | Fixed Income Securities [Member] | |||
Compensation And Retirement Disclosure [Line Items] | |||
Current targeted asset allocation | 56.00% | ||
Pension Plans [Member] | Real-estate Investments Trust Managers [Member] | |||
Compensation And Retirement Disclosure [Line Items] | |||
Current targeted asset allocation | 4.00% | ||
Pension Plans [Member] | Hedge Fund [Member] | |||
Compensation And Retirement Disclosure [Line Items] | |||
Current targeted asset allocation | 5.50% | ||
Other Post Retirement Plans [Member] | |||
Compensation And Retirement Disclosure [Line Items] | |||
Defined benefit plan expected contributions | $ 1,500,000 |
Retirement and Postretiremen_10
Retirement and Postretirement Benefit Plans - Summary of Assets Percentage Invested by Class (Detail) | Dec. 31, 2018 | Dec. 31, 2017 |
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 | 30.20% | 32.90% |
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 | 57.60% | 55.30% |
Real Estate [Member] | ||
Defined Benefit Plans and Other Postretirement Benefit Plans Table Text Block [Line Items] | ||
Percentage of assets invested in each asset class | 7.10% | 6.50% |
Other [Member] | ||
Defined Benefit Plans and Other Postretirement Benefit Plans Table Text Block [Line Items] | ||
Percentage of assets invested in each asset class | 5.10% | 5.30% |
Retirement and Postretiremen_11
Retirement and Postretirement Benefit Plans - Summary of Fair Value of Pension Plan Assets by Asset Category (Detail) - USD ($) $ in Thousands | Dec. 31, 2018 | Dec. 31, 2017 | |
Defined Benefit Plans and Other Postretirement Benefit Plans Table Text Block [Line Items] | |||
Defined benefit plan asset | $ 132,776 | $ 152,311 | |
Cash and Cash Equivalents [Member] | |||
Defined Benefit Plans and Other Postretirement Benefit Plans Table Text Block [Line Items] | |||
Defined benefit plan asset | 85 | 835 | |
U.S. Equity [Member] | |||
Defined Benefit Plans and Other Postretirement Benefit Plans Table Text Block [Line Items] | |||
Defined benefit plan asset | 23,909 | 29,749 | |
Non-U.S. Equity [Member] | |||
Defined Benefit Plans and Other Postretirement Benefit Plans Table Text Block [Line Items] | |||
Defined benefit plan asset | 11,497 | 14,306 | |
Emerging Markets Equity [Member] | |||
Defined Benefit Plans and Other Postretirement Benefit Plans Table Text Block [Line Items] | |||
Defined benefit plan asset | 4,666 | 6,004 | |
Government Bonds [Member] | |||
Defined Benefit Plans and Other Postretirement Benefit Plans Table Text Block [Line Items] | |||
Defined benefit plan asset | 19,903 | 24,203 | |
Corporate Bonds [Member] | |||
Defined Benefit Plans and Other Postretirement Benefit Plans Table Text Block [Line Items] | |||
Defined benefit plan asset | 40,524 | 42,909 | |
Mortgage Backed Securities [Member] | |||
Defined Benefit Plans and Other Postretirement Benefit Plans Table Text Block [Line Items] | |||
Defined benefit plan asset | 7,248 | 8,621 | |
Asset-backed Securities [Member] | |||
Defined Benefit Plans and Other Postretirement Benefit Plans Table Text Block [Line Items] | |||
Defined benefit plan asset | 2,773 | 1,782 | |
Commercial Mortgage-Backed Securities [Member] | |||
Defined Benefit Plans and Other Postretirement Benefit Plans Table Text Block [Line Items] | |||
Defined benefit plan asset | 1,900 | 2,070 | |
International Fixed Income [Member] | |||
Defined Benefit Plans and Other Postretirement Benefit Plans Table Text Block [Line Items] | |||
Defined benefit plan asset | 4,161 | 4,738 | |
Real Estate [Member] | |||
Defined Benefit Plans and Other Postretirement Benefit Plans Table Text Block [Line Items] | |||
Defined benefit plan asset | 9,448 | 9,848 | |
Hedge Fund [Member] | |||
Defined Benefit Plans and Other Postretirement Benefit Plans Table Text Block [Line Items] | |||
Defined benefit plan asset | 6,662 | 7,246 | |
Not Subject to Leveling [Member] | |||
Defined Benefit Plans and Other Postretirement Benefit Plans Table Text Block [Line Items] | |||
Defined benefit plan asset | [1] | 132,776 | 152,311 |
Not Subject to Leveling [Member] | Cash and Cash Equivalents [Member] | |||
Defined Benefit Plans and Other Postretirement Benefit Plans Table Text Block [Line Items] | |||
Defined benefit plan asset | [1] | 85 | 835 |
Not Subject to Leveling [Member] | U.S. Equity [Member] | |||
Defined Benefit Plans and Other Postretirement Benefit Plans Table Text Block [Line Items] | |||
Defined benefit plan asset | [1] | 23,909 | 29,749 |
Not Subject to Leveling [Member] | Non-U.S. Equity [Member] | |||
Defined Benefit Plans and Other Postretirement Benefit Plans Table Text Block [Line Items] | |||
Defined benefit plan asset | [1] | 11,497 | 14,306 |
Not Subject to Leveling [Member] | Emerging Markets Equity [Member] | |||
Defined Benefit Plans and Other Postretirement Benefit Plans Table Text Block [Line Items] | |||
Defined benefit plan asset | [1] | 4,666 | 6,004 |
Not Subject to Leveling [Member] | Government Bonds [Member] | |||
Defined Benefit Plans and Other Postretirement Benefit Plans Table Text Block [Line Items] | |||
Defined benefit plan asset | [1] | 19,903 | 24,203 |
Not Subject to Leveling [Member] | Corporate Bonds [Member] | |||
Defined Benefit Plans and Other Postretirement Benefit Plans Table Text Block [Line Items] | |||
Defined benefit plan asset | [1] | 40,524 | 42,909 |
Not Subject to Leveling [Member] | Mortgage Backed Securities [Member] | |||
Defined Benefit Plans and Other Postretirement Benefit Plans Table Text Block [Line Items] | |||
Defined benefit plan asset | [1] | 7,248 | 8,621 |
Not Subject to Leveling [Member] | Asset-backed Securities [Member] | |||
Defined Benefit Plans and Other Postretirement Benefit Plans Table Text Block [Line Items] | |||
Defined benefit plan asset | [1] | 2,773 | 1,782 |
Not Subject to Leveling [Member] | Commercial Mortgage-Backed Securities [Member] | |||
Defined Benefit Plans and Other Postretirement Benefit Plans Table Text Block [Line Items] | |||
Defined benefit plan asset | [1] | 1,900 | 2,070 |
Not Subject to Leveling [Member] | International Fixed Income [Member] | |||
Defined Benefit Plans and Other Postretirement Benefit Plans Table Text Block [Line Items] | |||
Defined benefit plan asset | [1] | 4,161 | 4,738 |
Not Subject to Leveling [Member] | Real Estate [Member] | |||
Defined Benefit Plans and Other Postretirement Benefit Plans Table Text Block [Line Items] | |||
Defined benefit plan asset | [1] | 9,448 | 9,848 |
Not Subject to Leveling [Member] | Hedge Fund [Member] | |||
Defined Benefit Plans and Other Postretirement Benefit Plans Table Text Block [Line Items] | |||
Defined benefit plan asset | [1] | $ 6,662 | $ 7,246 |
[1] | Investments that are valued using the net asset value per share (or its equivalent) practical expedient have not been classified in the fair value hierarchy. |
Retirement and Postretiremen_12
Retirement and Postretirement Benefit Plans - Estimated Future Benefit Payments (Detail) - Pension Plans [Member] $ in Thousands | Dec. 31, 2018USD ($) |
Defined Benefit Plans and Other Postretirement Benefit Plans Table Text Block [Line Items] | |
2,019 | $ 12,892 |
2,020 | 12,783 |
2,021 | 14,612 |
2,022 | 13,186 |
2,023 | 13,149 |
2024–2028 | $ 64,237 |
Retirement and Postretiremen_13
Retirement and Postretirement Benefit Plans - Summary of Accumulated Postretirement Benefit Obligation Changes in Plan Assets and Funded Status of Plan (Detail) - USD ($) $ in Thousands | 12 Months Ended | |
Dec. 31, 2018 | Dec. 31, 2017 | |
Defined Benefit Plans and Other Postretirement Benefit Plans Table Text Block [Line Items] | ||
APBO at beginning of period | $ 21,903 | $ 24,012 |
Service cost (benefits earned during the period) | 128 | 134 |
Interest cost on APBO | 672 | 771 |
Employee contributions | 139 | 89 |
Actuarial (gain) | (5,184) | (1,248) |
Benefits paid | (1,846) | (1,855) |
APBO at end of period | 15,812 | 21,903 |
Change in plan assets | ||
Company contributions | 1,707 | 1,766 |
Employee contributions | 139 | 89 |
Benefits paid | (1,846) | (1,855) |
Unfunded status | $ (15,812) | $ (21,903) |
Retirement and Postretiremen_14
Retirement and Postretirement Benefit Plans - Summary of Accrued Postretirement Benefits (Detail) - USD ($) $ in Thousands | Dec. 31, 2018 | Dec. 31, 2017 |
Defined Benefit Plans and Other Postretirement Benefit Plans Disclosures [Abstract] | ||
Current liabilities | $ (1,512) | $ (1,618) |
Noncurrent liabilities | (14,300) | (20,285) |
Net amount recognized | $ (15,812) | $ (21,903) |
Retirement and Postretiremen_15
Retirement and Postretirement Benefit Plans - Amounts Not Yet Reflected in Net Periodic Benefit Cost and Recognized in Accumulated Other Comprehensive Income (Detail) - USD ($) $ in Thousands | Dec. 31, 2018 | Dec. 31, 2017 | Dec. 31, 2016 |
Defined Benefit Plans and Other Postretirement Benefit Plans Table Text Block [Line Items] | |||
Accumulated other comprehensive loss | $ 41,557 | $ 39,501 | $ 41,235 |
Postretirement Benefit Costs [Member] | |||
Defined Benefit Plans and Other Postretirement Benefit Plans Table Text Block [Line Items] | |||
Net gain (loss) | 3,856 | (1,328) | |
Prior service (cost) credit | (467) | 222 | |
Accumulated other comprehensive income (loss) | 3,389 | (1,106) | |
Pension Plans [Member] | |||
Defined Benefit Plans and Other Postretirement Benefit Plans Table Text Block [Line Items] | |||
Net actuarial gain (loss) | (36,779) | (34,691) | |
Accumulated other comprehensive loss | $ (36,779) | $ (34,691) |
Retirement and Postretiremen_16
Retirement and Postretirement Benefit Plans - Weighted Average Actuarial Assumptions Used to Determine APBO (Detail) - Accumulated Postretirement Benefit Obligation [Member] | 12 Months Ended | |
Dec. 31, 2018 | Dec. 31, 2017 | |
Schedule Of Defined Benefit Plans Actuarial Assumptions Used In Calculating Net Benefit Obligations [Line Items] | ||
Discount rate | 4.20% | 3.60% |
Health care cost trend rate assumed for next year | 6.10% | 6.30% |
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 | 2,038 | 2,038 |
Retirement and Postretiremen_17
Retirement and Postretirement Benefit Plans - Significant Actuarial Assumptions used to Determine Post Retirement Benefit Cost (Detail) - Other Post Retirement Plans [Member] | 12 Months Ended | ||
Dec. 31, 2018 | Dec. 31, 2017 | Dec. 31, 2016 | |
Defined Benefit Plans and Other Postretirement Benefit Plans Table Text Block [Line Items] | |||
Discount rate | 3.60% | 4.10% | 4.40% |
Health care cost trend rate assumed for next year | 6.30% | 6.60% | 6.90% |
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 | 2,038 | 2,038 | 2,038 |
Retirement and Postretiremen_18
Retirement and Postretirement Benefit Plans - One Percentage Point Changes in Assumed Health Care Cost (Detail) - USD ($) $ in Thousands | 12 Months Ended | |
Dec. 31, 2018 | Dec. 31, 2017 | |
Defined Benefit Plans and Other Postretirement Benefit Plans Disclosures [Abstract] | ||
Effect on total of service and interest cost components | $ 4 | $ 7 |
Effect on postretirement benefit obligation | 238 | 117 |
Effect on total of service and interest cost components | (4) | (6) |
Effect on postretirement benefit obligation | $ (208) | $ (104) |
Retirement and Postretiremen_19
Retirement and Postretirement Benefit Plans - Summary of Change in Other Comprehensive Income (Detail) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2018 | Dec. 31, 2017 | Dec. 31, 2016 | |
Defined Benefit Plan Disclosure [Line Items] | |||
Net (gain) loss arising during the period | $ 2,786 | ||
Amortization of prior service credit | 690 | ||
Amortization of net (gain) loss | (1,420) | ||
Total accumulated other comprehensive income recognized during the period | (2,056) | $ 1,734 | $ (9,937) |
Pension Plans [Member] | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Net (gain) loss arising during the period | 7,970 | ||
Amortization of net (gain) loss | (1,420) | ||
Total accumulated other comprehensive income recognized during the period | 6,550 | ||
Other Post Retirement Plans [Member] | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Net (gain) loss arising during the period | (5,184) | ||
Amortization of prior service credit | 690 | ||
Total accumulated other comprehensive income recognized during the period | $ (4,494) |
Retirement and Postretiremen_20
Retirement and Postretirement Benefit Plans - Summary of Estimated Amounts Amortized from Accumulated Other Comprehensive Income (Loss) Over Next Fiscal Year (Detail) $ in Thousands | Dec. 31, 2018USD ($) |
Pension Plans [Member] | |
Defined Benefit Plan Disclosure [Line Items] | |
Net gain (loss) | $ (1,028) |
Defined benefit plan, amount to be amortized from accumulated other comprehensive income (loss) next fiscal year, total | (1,028) |
Other Post Retirement Plans [Member] | |
Defined Benefit Plan Disclosure [Line Items] | |
Prior service credit (cost) | (42) |
Net gain (loss) | 164 |
Defined benefit plan, amount to be amortized from accumulated other comprehensive income (loss) next fiscal year, total | $ 122 |
Retirement and Postretiremen_21
Retirement and Postretirement Benefit Plans - Expected Future Benefit Payments (Detail) - Other Post Retirement Plans [Member] $ in Thousands | Dec. 31, 2018USD ($) |
Defined Benefit Plans and Other Postretirement Benefit Plans Table Text Block [Line Items] | |
2,019 | $ 1,512 |
2,020 | 1,459 |
2,022 | 1,409 |
2,021 | 1,355 |
2,023 | 1,308 |
2024-2028 | $ 5,778 |
Stock-Based Compensation - Addi
Stock-Based Compensation - Additional Information (Detail) - USD ($) $ / shares in Units, $ in Thousands | 12 Months Ended | ||||
Dec. 31, 2018 | Dec. 31, 2017 | Dec. 31, 2016 | May 19, 2015 | ||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||||
Share-based compensation expense | $ 13,248 | $ 10,728 | $ 10,491 | ||
Intrinsic value of options outstanding | 500 | 500 | |||
Intrinsic value of options exercisable | 0 | 0 | |||
Intrinsic value of options vested and expected to vest | $ 0 | $ 0 | |||
Minimum price of options | $ 5.25 | ||||
Maximum price of options | $ 22.80 | ||||
Weighted average remaining contractual life | 3 years 6 months | ||||
Weighted average remaining contractual life for options vested and expected to vest | 3 years 4 months 24 days | ||||
Weighted average remaining contractual life for options exercisable | 2 years 2 months 12 days | ||||
Unrecognized compensation expense | $ 3,000 | ||||
Unrecognized compensation expense, recognition period | 2 years 6 months | ||||
Weighted average grant date fair value, options granted | $ 1.82 | $ 2.85 | $ 4.25 | ||
Fair value assumptions, stock price | $ 7 | $ 11.05 | |||
Fair value assumptions, expected term | [1] | 4 years 9 months | 4 years 9 months | 4 years 9 months | |
Fair value assumptions, risk-free rate | [2] | 2.84% | |||
Expense associated with ESPP | $ 300 | $ 500 | |||
Restricted Stock Units [Member] | |||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||||
Unrecognized compensation expense, recognition period | 1 year 8 months 12 days | ||||
Performance measurement period for award of restricted stock units | 3 years | ||||
Fair value of restricted stock units | $ 3,000 | $ 2,700 | |||
Fair value assumptions, stock price | $ 5.25 | $ 12.95 | |||
Fair value assumptions, expected term | 3 years | ||||
Fair value assumptions, risk-free rate | 2.39% | 1.45% | |||
Period to recognize expense on straight-line basis | 3 years | ||||
Unrecognized compensation expense | $ 14,500 | ||||
Selling, General and Administrative Expenses [Member] | |||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||||
Share-based compensation expense | $ 13,300 | $ 10,700 | $ 10,500 | ||
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 | ||||
2015 Omnibus Incentive Plan [Member] | |||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||||
Common stock available for future issuance | 5,822,632 | 4,000,000 | |||
Number of shares authorized for issuance | 6,615,476 | ||||
2012 Management Incentive Plan [Member] | |||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||||
Common stock available for future issuance | 2,615,476 | ||||
Common stock additional capital shares reserved for future issuance | 10,604,071 | ||||
2012 Management Incentive Plan [Member] | Common Stock Warrants [Member] | |||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||||
Common stock available for future issuance | 7,368,422 | ||||
Stock split ratio | 2 | ||||
Percentage of warrant to purchase common stock prior to bankruptcy | 5.00% | ||||
Term of warrant | 7 years | ||||
Common stock equivalents of warrants outstanding | 7,297,909 | ||||
Strike price of common stock | $ 21.14 | ||||
Employees Stock Purchase Plan [Member] | |||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||||
Number of shares available for grant | 800,000 | 1,300,000 | |||
Employee stock purchase plan,description | At the beginning of each six-month offering period under the ESPP each participant is deemed to have been granted an option to purchase shares of our common stock equal to the amount of their payroll deductions during the period, but in any event not more than five percent of the employee’s eligible compensation, subject to certain limitations. Such options may be exercised only to the extent of accumulated payroll deductions at the end of the offering period, at a purchase price per share equal to 85% of the fair market value of our common stock at the beginning or end of each offering period, whichever is less. | ||||
[1] | The expected term is the number of years that we estimate that options will be outstanding prior to exercise. We have used the simplified method for estimating the expected term as we do not have sufficient stock option exercise experience to support a reasonable estimate of the expected term. The simplified method represents the best estimate of the expected term. | ||||
[2] | The risk-free interest rate is based on the U.S. Treasury yield for a period commensurate with the expected life of the option. |
Stock-Based Compensation - Summ
Stock-Based Compensation - Summary of Option Activity (Detail) | 12 Months Ended |
Dec. 31, 2018$ / sharesshares | |
Number of Shares | |
Outstanding at beginning of period | shares | 3,760,098 |
Granted | shares | 137,363 |
Forfeited | shares | (409,249) |
Outstanding at end of period | shares | 3,488,212 |
Vested and expected to vest at end of the year | shares | 3,376,551 |
Exercisable at end of year | shares | 2,135,401 |
Weighted Average Exercise Price | |
Outstanding at beginning of period | $ / shares | $ 13.43 |
Granted | $ / shares | 5.25 |
Forfeited | $ / shares | 14.50 |
Outstanding at end of period | $ / shares | 12.98 |
Vested and expected to vest at end of the year | $ / shares | 13.02 |
Exercisable at end of year | $ / shares | $ 13.63 |
Stock-Based Compensation - Fair
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, 2018 | Dec. 31, 2017 | Dec. 31, 2016 | ||
Disclosure of Compensation Related Costs, Share-based Payments [Abstract] | ||||
Expected term (years) | [1] | 4 years 9 months | 4 years 9 months | 4 years 9 months |
Expected dividend yield | 0.00% | 0.00% | 0.00% | |
Expected volatility | [2] | 35.30% | ||
Expected volatility, minimum | [2] | 25.22% | 23.86% | |
Expected volatility, maximum | [2] | 25.50% | 24.26% | |
Risk-free interest rate | [3] | 2.84% | ||
Risk-free interest rate, minimum | [3] | 1.94% | 1.20% | |
Risk-free interest rate, maximum | [3] | 1.99% | 1.31% | |
[1] | The expected term is the number of years that we estimate that options will be outstanding prior to exercise. We have used the simplified method for estimating the expected term as we do not have sufficient stock option exercise experience to support a reasonable estimate of the expected term. The simplified method represents the best estimate of the expected term. | |||
[2] | Historically, we have estimated volatility for options granted based on the historical volatility for a group of companies (including our own) believed to be a representative peer group, and were selected based on industry and market capitalization. During 2018, we have estimated volatility based on our historical volatility. | |||
[3] | The risk-free interest rate is based on the U.S. Treasury yield for a period commensurate with the expected life of the option. |
Stock-Based Compensation - Su_2
Stock-Based Compensation - Summary of Restricted Stock Activity for Grants to Certain Executive Employees and Independent Members of Board of Directors (Detail) | 12 Months Ended |
Dec. 31, 2018$ / sharesshares | |
Restricted Stock [Member] | |
Number of Units | |
Outstanding at beginning of the year | shares | 273,655 |
Vested | shares | (9,619) |
Forfeited | shares | (264,036) |
Weighted-Average Grant Date Fair Value per Share | |
Outstanding at beginning of the year | $ / shares | $ 20.10 |
Vested | $ / shares | 20.10 |
Forfeited | $ / shares | $ 20.10 |
Restricted Stock Units [Member] | |
Number of Units | |
Outstanding at beginning of the year | shares | 1,808,957 |
Granted | shares | 2,365,322 |
Vested | shares | (498,806) |
Forfeited | shares | (305,697) |
Outstanding at end of period | shares | 3,369,776 |
Weighted-Average Grant Date Fair Value per Share | |
Outstanding at beginning of the year | $ / shares | $ 13.37 |
Granted | $ / shares | 6.83 |
Vested | $ / shares | 13.47 |
Forfeited | $ / shares | 9.03 |
Outstanding at end of period | $ / shares | $ 9.16 |
Stock-Based Compensation - Su_3
Stock-Based Compensation - Summary of Shares Issued or to be Issued in Connection with the ESPP (Detail) - Employees Stock Purchase Plan [Member] - $ / shares | 12 Months Ended | |
Dec. 31, 2018 | Dec. 31, 2017 | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||
Shares issued or to be issued | 167,991 | 165,145 |
Range of purchase prices | $ 6.50 | |
Minimum [Member] | ||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||
Range of purchase prices | $ 7.91 | |
Maximum [Member] | ||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||
Range of purchase prices | $ 9.22 |
Fair Value Measurements - Summa
Fair Value Measurements - Summary of Financial Assets and Liabilities Measured at Fair Value on Recurring Basis (Detail) - USD ($) $ in Thousands | Dec. 31, 2018 | Dec. 31, 2017 |
Financial assets | ||
Financial assets | $ 280,802 | $ 202,264 |
Financial liabilities | ||
Financial liabilities | 534 | 1,159 |
Interest Rate Derivatives [Member] | ||
Financial assets | ||
Financial assets | 2,382 | |
Financial liabilities | ||
Financial liabilities | 1,159 | |
Money Market Funds [Member] | ||
Financial assets | ||
Financial assets | 228,587 | 115,464 |
U.S. Treasury Securities [Member] | ||
Financial assets | ||
Financial assets | 24,939 | 16,065 |
U.S. Government and Agency Securities [Member] | ||
Financial assets | ||
Financial assets | 24,894 | 70,384 |
Foreign Exchange Derivatives [Member] | ||
Financial liabilities | ||
Financial liabilities | 534 | |
Foreign Exchange Derivatives [Member] | ||
Financial assets | ||
Financial assets | 351 | |
Quoted Prices in Active Markets for Identical Assets (Level 1) [Member] | ||
Financial assets | ||
Financial assets | 253,526 | 131,529 |
Quoted Prices in Active Markets for Identical Assets (Level 1) [Member] | Money Market Funds [Member] | ||
Financial assets | ||
Financial assets | 228,587 | 115,464 |
Quoted Prices in Active Markets for Identical Assets (Level 1) [Member] | U.S. Treasury Securities [Member] | ||
Financial assets | ||
Financial assets | 24,939 | 16,065 |
Significant Other Observable Inputs (Level 2) [Member] | ||
Financial assets | ||
Financial assets | 27,276 | 70,735 |
Financial liabilities | ||
Financial liabilities | 534 | 1,159 |
Significant Other Observable Inputs (Level 2) [Member] | Interest Rate Derivatives [Member] | ||
Financial assets | ||
Financial assets | 2,382 | |
Financial liabilities | ||
Financial liabilities | 1,159 | |
Significant Other Observable Inputs (Level 2) [Member] | U.S. Government and Agency Securities [Member] | ||
Financial assets | ||
Financial assets | 24,894 | 70,384 |
Significant Other Observable Inputs (Level 2) [Member] | Foreign Exchange Derivatives [Member] | ||
Financial liabilities | ||
Financial liabilities | $ 534 | |
Significant Other Observable Inputs (Level 2) [Member] | Foreign Exchange Derivatives [Member] | ||
Financial assets | ||
Financial assets | $ 351 |
Fair Value Measurements - Addit
Fair Value Measurements - Additional Information (Detail) - USD ($) | 12 Months Ended | ||
Dec. 31, 2018 | Dec. 31, 2017 | Dec. 31, 2016 | |
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |||
Financial assets | $ 280,802,000 | $ 202,264,000 | |
Non-financial liabilities fair value | 0 | 0 | |
Goodwill impairment | 0 | 0 | |
2017 Restructuring Plan [Member] | |||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |||
Impairment of long-lived assets | 9,100,000 | ||
Interest Rate Derivatives [Member] | |||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |||
Financial assets | 2,382,000 | ||
Aggregate notional amount of derivative instruments | 400,000,000 | ||
Foreign Exchange Forward Contracts [Member] | |||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |||
Aggregate notional amount of derivative instruments | 15,700,000 | 15,800,000 | |
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 | |
Other Intangible Assets [Member] | |||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |||
Impairment of intangible assets | 0 | 0 | $ 130,200,000 |
Money Market Funds [Member] | |||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |||
Financial assets | 228,587,000 | 115,464,000 | |
Pre-publication Costs [Member] | |||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |||
Impairment of intangible assets | 0 | 4,000,000 | |
Property, Plant, and Equipment [Member] | |||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |||
Impairment of intangible assets | 0 | ||
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 | 253,526,000 | 131,529,000 | |
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 | 228,587,000 | 115,464,000 | |
Significant Other Observable Inputs (Level 2) [Member] | |||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |||
Financial assets | 27,276,000 | 70,735,000 | |
Significant Other Observable Inputs (Level 2) [Member] | Interest Rate Derivatives [Member] | |||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |||
Financial assets | 2,382,000 | ||
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 | $ 24,800,000 | $ 33,500,000 |
Fair Value Measurements - Sum_2
Fair Value Measurements - Summary of Non-financial Assets and Liabilities Measured at Fair Value on Nonrecurring Basis (Detail) - USD ($) $ in Thousands | 12 Months Ended | |
Dec. 31, 2017 | Dec. 31, 2016 | |
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Total Impairment | $ 3,980 | $ 130,205 |
Property, plant, and equipment | 0 | |
Property, Plant, and Equipment [Member] | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Total Impairment | 9,119 | |
Property, plant, and equipment | 0 | |
Pre-publication Costs [Member] | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Total Impairment | 3,980 | |
Property, plant, and equipment | 0 | |
Significant Unobservable Inputs (Level 3) [Member] | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Property, plant, and equipment | 0 | |
Significant Unobservable Inputs (Level 3) [Member] | Property, Plant, and Equipment [Member] | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Property, plant, and equipment | 0 | |
Significant Unobservable Inputs (Level 3) [Member] | Pre-publication Costs [Member] | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Property, plant, and equipment | $ 0 |
Fair Value Measurements - Sum_3
Fair Value Measurements - Summary of Carrying Amounts and Estimated Fair Market Values of Debt (Detail) - USD ($) $ in Thousands | Dec. 31, 2018 | Dec. 31, 2017 |
Schedule Of Carrying Values And Estimated Fair Values Of Debt Instruments [Line Items] | ||
Debt, carrying value | $ 772,000 | |
Term Loan [Member] | ||
Schedule Of Carrying Values And Estimated Fair Values Of Debt Instruments [Line Items] | ||
Debt, carrying value | 763,649 | $ 768,194 |
Debt, estimated fair value | $ 691,102 | $ 710,579 |
Commitments and Contingencies -
Commitments and Contingencies - Future Minimum Rental Commitments Under Noncancelable Leases (Detail) $ in Thousands | Dec. 31, 2018USD ($) |
Commitments and Contingencies Disclosure [Abstract] | |
2,019 | $ 32,694 |
2,020 | 26,889 |
2,021 | 26,118 |
2,022 | 24,549 |
2,023 | 27,469 |
Thereafter | 171,203 |
Total minimum lease payments | 308,922 |
Total future minimal rentals under subleases | $ 10,607 |
Commitments and Contingencies_2
Commitments and Contingencies - Additional Information (Detail) - USD ($) | 3 Months Ended | 12 Months Ended | ||
Mar. 31, 2017 | Dec. 31, 2018 | Dec. 31, 2017 | Dec. 31, 2016 | |
Commitments and Contingencies Disclosure [Abstract] | ||||
Rent expense, net of sublease income | $ 41,900,000 | $ 37,600,000 | $ 28,800,000 | |
Rent expense, additional charges | $ 4,700,000 | 4,100,000 | 3,300,000 | |
Litigation settlement payments | $ 10,000,000 | |||
Insurance recovery proceeds | $ 4,500,000 | |||
Guarantee expiration period | 2,020 | |||
Guarantee future payments | $ 14,000,000 | |||
Performance related surety bonds for which the Company is contingently liable | 4,400,000 | 2,500,000 | ||
Aggregate letter of credit | 24,300,000 | 25,200,000 | ||
Letter of credit backed by performance related surety bonds | 100,000 | 100,000 | ||
Indemnification liabilities | $ 0 | $ 0 |
Stockholders' Equity - Accumula
Stockholders' Equity - Accumulated Other Comprehensive Loss (Detail) - USD ($) $ in Thousands | Dec. 31, 2018 | Dec. 31, 2017 | Dec. 31, 2016 |
Equity [Abstract] | |||
Net change in pension and benefit plan liabilities | $ (41,557) | $ (39,501) | $ (41,235) |
Foreign currency translation adjustments | (5,909) | (5,753) | (5,862) |
Unrealized loss on short-term investments | (99) | (108) | (90) |
Net change in unrealized loss on derivative instruments | 2,381 | (1,160) | (6,108) |
Accumulated other comprehensive loss | $ (45,184) | $ (46,522) | $ (53,295) |
Stockholders' Equity - Addition
Stockholders' Equity - Additional Information (Detail) - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2018 | Dec. 31, 2017 | Dec. 31, 2016 | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Amortization of defined benefit pension and postretirement benefit plans | $ (0.9) | $ (0.7) | $ 0.5 |
Stock repurchase Common Stock value, authorized | 1,000 | ||
Available for share repurchases, Authorized | $ 482 | ||
Shares repurchased | 0 | 0 | 2,903,566 |
Stockholders' Equity - Schedule
Stockholders' Equity - Schedule of Share Repurchase Activity (Detail) - USD ($) $ / shares in Units, $ in Thousands | 12 Months Ended | ||
Dec. 31, 2018 | Dec. 31, 2017 | Dec. 31, 2016 | |
Equity [Abstract] | |||
Cost of repurchases | $ 55,017 | ||
Shares repurchased | 0 | 0 | 2,903,566 |
Average cost per share | $ 18.95 |
Net Loss Per Share - Computatio
Net Loss Per Share - Computation of Basic and Diluted Earnings per Share (Detail) - USD ($) $ / shares in Units, $ in Thousands | 3 Months Ended | 12 Months Ended | |||||||||
Dec. 31, 2018 | Sep. 30, 2018 | Jun. 30, 2018 | Mar. 31, 2018 | Dec. 31, 2017 | Sep. 30, 2017 | Jun. 30, 2017 | Mar. 31, 2017 | Dec. 31, 2018 | Dec. 31, 2017 | Dec. 31, 2016 | |
Numerator | |||||||||||
Loss from continuing operations | $ (86,390) | $ 83,908 | $ (29,089) | $ (105,886) | $ (36,446) | $ 88,636 | $ (48,666) | $ (123,861) | $ (137,457) | $ (120,337) | $ (306,145) |
Earnings from discontinued operations, net of tax | 12,833 | 17,150 | 21,587 | ||||||||
Gain on sale of discontinued operations, net of tax | 30,469 | ||||||||||
Income from discontinued operations, net of tax | 30,469 | 2,441 | 5,817 | 4,575 | 10,278 | 1,870 | 1,799 | 3,203 | 43,302 | 17,150 | 21,587 |
Net loss attributable to common stockholders | $ (55,921) | $ 86,349 | $ (23,272) | $ (101,311) | $ (26,168) | $ 90,506 | $ (46,867) | $ (120,658) | $ (94,155) | $ (103,187) | $ (284,558) |
Denominator | |||||||||||
Weighted average shares outstanding Basic | 123,444,943 | 122,949,064 | 122,418,474 | ||||||||
Weighted average shares outstanding Diluted | 123,444,943 | 122,949,064 | 122,418,474 | ||||||||
Net loss per share attributable to common stockholders Basic and diluted: | |||||||||||
Continuing operations | $ (1.11) | $ (0.98) | $ (2.50) | ||||||||
Discontinued operations | 0.35 | 0.14 | 0.18 | ||||||||
Net loss | $ (0.76) | $ (0.84) | $ (2.32) |
Net Loss Per Share - Summary of
Net Loss Per Share - Summary of Anti-Dilutive Securities Excluded from Computation of Diluted EPS (Detail) - shares | 12 Months Ended | ||
Dec. 31, 2018 | Dec. 31, 2017 | Dec. 31, 2016 | |
Stock Options [Member] | |||
Antidilutive Securities Excluded from Computation of Earnings Per Share [Line Items] | |||
Anti-dilutive securities excluded from computation of diluted EPS | 3,406,171 | 2,977,550 | 5,322,266 |
Restricted Stock Units [Member] | |||
Antidilutive Securities Excluded from Computation of Earnings Per Share [Line Items] | |||
Anti-dilutive securities excluded from computation of diluted EPS | 2,793,680 | 1,429,816 | 715,504 |
Segment Reporting - Additional
Segment Reporting - Additional Information (Detail) | 12 Months Ended |
Dec. 31, 2018Segment | |
Segment Reporting [Abstract] | |
Reportable segments | 2 |
Segment Reporting - Consolidate
Segment Reporting - Consolidated Net Income (Loss) (Detail) - USD ($) $ in Thousands | 3 Months Ended | 12 Months Ended | |||||||||
Dec. 31, 2018 | Sep. 30, 2018 | Jun. 30, 2018 | Mar. 31, 2018 | Dec. 31, 2017 | Sep. 30, 2017 | Jun. 30, 2017 | Mar. 31, 2017 | Dec. 31, 2018 | Dec. 31, 2017 | Dec. 31, 2016 | |
Segment Reporting Information [Line Items] | |||||||||||
Net sales | $ 249,038 | $ 516,255 | $ 357,365 | $ 199,759 | $ 233,745 | $ 516,206 | $ 373,393 | $ 203,685 | $ 1,322,417 | $ 1,327,029 | $ 1,291,978 |
Segment Adjusted EBITDA | 192,128 | 185,279 | 152,305 | ||||||||
Operating Segments [Member] | |||||||||||
Segment Reporting Information [Line Items] | |||||||||||
Net sales | 1,322,417 | 1,327,029 | 1,291,978 | ||||||||
Operating Segments [Member] | Education [Member] | |||||||||||
Segment Reporting Information [Line Items] | |||||||||||
Net sales | 1,122,689 | 1,146,453 | 1,126,363 | ||||||||
Segment Adjusted EBITDA | 210,604 | 223,941 | 194,632 | ||||||||
Operating Segments [Member] | Trade Publishing [Member] | |||||||||||
Segment Reporting Information [Line Items] | |||||||||||
Net sales | 199,728 | 180,576 | 165,615 | ||||||||
Segment Adjusted EBITDA | 21,942 | 12,096 | 6,255 | ||||||||
Corporate/Other [Member] | |||||||||||
Segment Reporting Information [Line Items] | |||||||||||
Segment Adjusted EBITDA | $ (40,418) | $ (50,758) | $ (48,582) |
Segment Reporting - Summary of
Segment Reporting - Summary of Net Sales (Detail) - USD ($) $ in Thousands | 3 Months Ended | 12 Months Ended | ||||||||||
Dec. 31, 2018 | Sep. 30, 2018 | Jun. 30, 2018 | Mar. 31, 2018 | Dec. 31, 2017 | Sep. 30, 2017 | Jun. 30, 2017 | Mar. 31, 2017 | Dec. 31, 2018 | Dec. 31, 2017 | Dec. 31, 2016 | ||
Net sales | $ 249,038 | $ 516,255 | $ 357,365 | $ 199,759 | $ 233,745 | $ 516,206 | $ 373,393 | $ 203,685 | $ 1,322,417 | $ 1,327,029 | $ 1,291,978 | |
Operating Segments [Member] | ||||||||||||
Net sales | 1,322,417 | 1,327,029 | 1,291,978 | |||||||||
Operating Segments [Member] | Educational Services [Member] | ||||||||||||
Net sales | 1,122,689 | 1,146,453 | 1,126,363 | |||||||||
Operating Segments [Member] | Trade Publishing [Member] | ||||||||||||
Net sales | 199,728 | 180,576 | 165,615 | |||||||||
Operating Segments [Member] | Core Solutions [Member] | ||||||||||||
Net sales | [1] | 538,166 | 595,097 | 602,862 | ||||||||
Operating Segments [Member] | Core Solutions [Member] | Educational Services [Member] | ||||||||||||
Net sales | [1] | 538,166 | 595,097 | 602,862 | ||||||||
Operating Segments [Member] | Extension Businesses [Member] | ||||||||||||
Net sales | [2] | 584,523 | 551,356 | 523,501 | ||||||||
Operating Segments [Member] | Extension Businesses [Member] | Educational Services [Member] | ||||||||||||
Net sales | [2] | 584,523 | 551,356 | 523,501 | ||||||||
Operating Segments [Member] | Trade Products [Member] | ||||||||||||
Net sales | 199,728 | 180,576 | 165,615 | |||||||||
Operating Segments [Member] | Trade Products [Member] | Trade Publishing [Member] | ||||||||||||
Net sales | $ 199,728 | $ 180,576 | $ 165,615 | |||||||||
[1] | Comprehensive solutions primarily for reading, math, science and social studies programs. | |||||||||||
[2] | Primarily consists of our Heinemann brand, intervention, supplemental and professional services. |
Segment Reporting - Consolida_2
Segment Reporting - Consolidated Statements of Operations (Detail) - USD ($) $ in Thousands | 10 Months Ended | 12 Months Ended | ||
Dec. 31, 2018 | Dec. 31, 2018 | Dec. 31, 2017 | Dec. 31, 2016 | |
Segment Reporting [Abstract] | ||||
Total Segment Adjusted EBITDA | $ 192,128 | $ 185,279 | $ 152,305 | |
Interest expense | (45,680) | (42,805) | (39,181) | |
Interest income | 2,550 | 1,338 | 518 | |
Depreciation expense | (75,116) | (71,049) | (74,467) | |
Amortization expense – film asset | (6,057) | |||
Amortization expense | (170,903) | (195,394) | (209,592) | |
Non-cash charges—stock compensation | (13,248) | (10,728) | (10,491) | |
Non-cash charges—loss on derivative instruments | (1,374) | 1,366 | (614) | |
Non-cash charges—asset impairment charges | (3,980) | (130,205) | ||
Purchase accounting adjustments | (5,116) | |||
Fees, expenses or charges for equity offerings, debt or acquisitions/dispositions | (2,883) | (1,464) | (1,123) | |
2017 Restructuring Plan | $ (42,832) | (4,657) | (37,775) | 0 |
Restructuring/Integration | (14,364) | |||
Severance, separation costs and facility closures | (6,821) | (177) | (15,371) | |
Legal reimbursement (settlement) | 3,633 | (10,000) | ||
Gain on sale of assets | 201 | |||
Loss from continuing operations before taxes | (131,860) | (171,756) | (357,701) | |
(Provision) benefit for income taxes | (5,597) | 51,419 | 51,556 | |
Net loss from continuing operations | $ (137,457) | $ (120,337) | $ (306,145) |
Segment Reporting - Segment Inf
Segment Reporting - Segment Information (Detail) - USD ($) $ in Thousands | Dec. 31, 2018 | Dec. 31, 2017 |
Segment Reporting Information [Line Items] | ||
Total Assets | $ 2,495,124 | $ 2,563,591 |
Education [Member] | ||
Segment Reporting Information [Line Items] | ||
Total Assets | 1,999,481 | 2,121,647 |
Trade Publishing [Member] | ||
Segment Reporting Information [Line Items] | ||
Total Assets | 167,510 | 173,395 |
Corporate/other [Member] | ||
Segment Reporting Information [Line Items] | ||
Total Assets | $ 328,133 | $ 268,549 |
Segment Reporting - Schedule of
Segment Reporting - Schedule of Long-Lived Assets (Detail) - USD ($) $ in Thousands | Dec. 31, 2018 | Dec. 31, 2017 |
Segment Reporting [Abstract] | ||
Long-lived assets—International | $ 64 | $ 7,593 |
Segment Reporting - Schedule _2
Segment Reporting - Schedule of Net Sales by Geographic Region (Detail) - USD ($) $ in Thousands | 3 Months Ended | 12 Months Ended | |||||||||
Dec. 31, 2018 | Sep. 30, 2018 | Jun. 30, 2018 | Mar. 31, 2018 | Dec. 31, 2017 | Sep. 30, 2017 | Jun. 30, 2017 | Mar. 31, 2017 | Dec. 31, 2018 | Dec. 31, 2017 | Dec. 31, 2016 | |
Segment Reporting Information [Line Items] | |||||||||||
Net sales | $ 249,038 | $ 516,255 | $ 357,365 | $ 199,759 | $ 233,745 | $ 516,206 | $ 373,393 | $ 203,685 | $ 1,322,417 | $ 1,327,029 | $ 1,291,978 |
U.S. [Member] | |||||||||||
Segment Reporting Information [Line Items] | |||||||||||
Net sales | 1,249,568 | 1,254,956 | 1,203,855 | ||||||||
International [Member] | |||||||||||
Segment Reporting Information [Line Items] | |||||||||||
Net sales | $ 72,849 | $ 72,073 | $ 88,123 |
Valuation and Qualifying Acco_3
Valuation and Qualifying Accounts - Valuation and Qualifying Accounts (Detail) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2018 | Dec. 31, 2017 | Dec. 31, 2016 | |
Allowance for Bad Debt [Member] | |||
Valuation and Qualifying Accounts Disclosure [Line Items] | |||
Balance at Beginning of Year | $ 2,508 | $ 3,463 | $ 8,323 |
Net Charges | 128 | 400 | 734 |
Utilization of Allowances | (463) | (1,355) | (5,594) |
Balance at End of Year | 2,173 | 2,508 | 3,463 |
Reserve for Book Returns [Member] | |||
Valuation and Qualifying Accounts Disclosure [Line Items] | |||
Balance at Beginning of Year | 20,580 | 18,671 | 23,889 |
Net Charges | 36,395 | 43,682 | 54,058 |
Utilization of Allowances | (38,416) | (41,773) | (59,276) |
Balance at End of Year | 18,559 | 20,580 | 18,671 |
Reserve for Royalty Advances [Member] | |||
Valuation and Qualifying Accounts Disclosure [Line Items] | |||
Balance at Beginning of Year | 103,606 | 85,526 | 69,978 |
Net Charges | 17,301 | 17,861 | 16,270 |
Utilization of Allowances | (3,110) | 219 | (722) |
Balance at End of Year | 117,797 | 103,606 | 85,526 |
Deferred Tax Valuation Allowance [Member] | |||
Valuation and Qualifying Accounts Disclosure [Line Items] | |||
Balance at Beginning of Year | 571,653 | 759,887 | 664,730 |
Net Charges | (7,667) | (187,480) | 98,949 |
Utilization of Allowances | (1,594) | (754) | (3,792) |
Balance at End of Year | $ 562,392 | $ 571,653 | $ 759,887 |
Quarterly Results of Operatio_3
Quarterly Results of Operations (Unaudited) - Quarterly Results of Operations (Detail) - USD ($) $ / shares in Units, $ in Thousands | 3 Months Ended | 12 Months Ended | |||||||||
Dec. 31, 2018 | Sep. 30, 2018 | Jun. 30, 2018 | Mar. 31, 2018 | Dec. 31, 2017 | Sep. 30, 2017 | Jun. 30, 2017 | Mar. 31, 2017 | Dec. 31, 2018 | Dec. 31, 2017 | Dec. 31, 2016 | |
Quarterly Financial Information Disclosure [Abstract] | |||||||||||
Net sales | $ 249,038 | $ 516,255 | $ 357,365 | $ 199,759 | $ 233,745 | $ 516,206 | $ 373,393 | $ 203,685 | $ 1,322,417 | $ 1,327,029 | $ 1,291,978 |
Gross profit | 91,663 | 278,175 | 162,827 | 64,315 | 71,807 | 271,053 | 165,803 | 63,702 | |||
Operating income (loss) | (74,711) | 91,838 | (14,747) | (92,905) | (89,183) | 88,373 | (33,837) | (100,494) | (90,525) | (135,141) | (322,677) |
Income (loss) from continuing operations, net of tax | (86,390) | 83,908 | (29,089) | (105,886) | (36,446) | 88,636 | (48,666) | (123,861) | (137,457) | (120,337) | (306,145) |
Income from discontinued operations, net of tax | 30,469 | 2,441 | 5,817 | 4,575 | 10,278 | 1,870 | 1,799 | 3,203 | 43,302 | 17,150 | 21,587 |
Net income (loss) | $ (55,921) | $ 86,349 | $ (23,272) | $ (101,311) | $ (26,168) | $ 90,506 | $ (46,867) | $ (120,658) | $ (94,155) | $ (103,187) | $ (284,558) |
Basic: | |||||||||||
Continuing operations | $ (0.70) | $ 0.68 | $ (0.24) | $ (0.86) | $ (0.29) | $ 0.72 | $ (0.40) | $ (1.01) | |||
Discontinued operations | 0.25 | 0.02 | 0.05 | 0.04 | 0.08 | 0.02 | 0.02 | 0.03 | |||
Net loss | (0.45) | 0.70 | (0.19) | (0.82) | (0.21) | 0.74 | (0.38) | (0.98) | |||
Diluted: | |||||||||||
Continuing operations | (0.70) | 0.68 | (0.24) | (0.86) | (0.29) | 0.72 | (0.40) | (1.01) | |||
Discontinued operations | 0.25 | 0.02 | 0.05 | 0.04 | 0.08 | 0.01 | 0.02 | 0.03 | |||
Net loss | $ (0.45) | $ 0.70 | $ (0.19) | $ (0.82) | $ (0.21) | $ 0.73 | $ (0.38) | $ (0.98) |
Quarterly Results of Operatio_4
Quarterly Results of Operations (Unaudited) - Additional Information (Detail) - USD ($) $ in Millions | 3 Months Ended | 6 Months Ended | 12 Months Ended |
Sep. 30, 2018 | Jun. 30, 2017 | Dec. 31, 2017 | |
Quarterly Results Of Operations [Line Items] | |||
Prior period adjustment description | During the six months ended June 30, 2017, we recorded out-of-period corrections of approximately $4.0 million increasing net sales and reducing deferred revenue that should have been recognized previously. Management believes these out-of-period corrections are not material to the current period financial statements or any previously issued financial statements. | ||
Increase In Net Sale [Member] | |||
Quarterly Results Of Operations [Line Items] | |||
Prior period correction amounts | $ 2.8 | $ 4 |
Subsequent Events - Additional
Subsequent Events - Additional Information (Detail) $ in Millions | Jan. 14, 2019USD ($) |
Subsequent Event [Member] | Waggle LLC [Member] | |
Business acquisition purchase price | $ 5.4 |