McGraw-Hill Global Education Intermediate 10-Q 12 Nov 15 2015 Q3 Quarterly report Financial data

Document and Entity Information

Document and Entity Information	9 Months Ended
	Sep. 30, 2015shares
Document and Entity Information [Abstract]
Entity Registrant Name	McGraw-Hill Global Education Intermediate Holdings, LLC
Entity Central Index Key	1,585,002
Document Type	10-Q
Document Period End Date	Sep. 30, 2015
Document Fiscal Year Focus	2,015
Document Fiscal Period Focus	Q3
Current Fiscal Year End Date	--12-31
Amendment Flag	false
Entity Filer Category	Non-accelerated Filer
Entity Common Stock, Shares Outstanding	0

Consolidated Statements of Oper

Consolidated Statements of Operations (Unaudited) - USD ($) $ in Thousands	3 Months Ended		9 Months Ended
	Sep. 30, 2015	Sep. 30, 2014	Sep. 30, 2015	Sep. 30, 2014
Income Statement [Abstract]
Revenue	$ 437,279	$ 462,128	$ 888,019	$ 918,444
Cost of goods sold	114,673	126,619	244,560	251,623
Gross profit	322,606	335,509	643,459	666,821
Operating expenses
Operating & administration expenses	150,295	166,469	436,315	488,406
Depreciation	6,936	2,047	19,477	10,958
Amortization of intangibles	22,755	22,261	69,403	79,007
Transaction costs	0	162	0	3,583
Total operating expenses	179,986	190,939	525,195	581,954
Operating (loss) income	142,620	144,570	118,264	84,867
Interest expense (income), net	31,936	35,466	98,233	115,612
Other (income) expense	(1,275)	(1,275)	(8,604)	(11,154)
(Loss) income from operations before taxes on income	111,959	110,379	28,635	(19,591)
Income tax (benefit) provision	38,610	13,186	12,740	(5,753)
Net (loss) income	73,349	97,193	15,895	(13,838)
Less: Net (income) loss attributable to noncontrolling interests	0	0	0	299
Net (loss) income attributable to McGraw-Hill Global Education Intermediate Holdings, LLC	$ 73,349	$ 97,193	$ 15,895	$ (13,539)

Consolidated Statements of Comp

Consolidated Statements of Comprehensive Income (Loss) (Unaudited) - USD ($) $ in Thousands	3 Months Ended		9 Months Ended
	Sep. 30, 2015	Sep. 30, 2014	Sep. 30, 2015	Sep. 30, 2014
Statement of Comprehensive Income [Abstract]
Net (loss) income	$ 73,349	$ 97,193	$ 15,895	$ (13,838)
Other comprehensive (loss) income:
Foreign currency translation adjustment	(7,567)	(11,580)	(12,605)	(2,384)
Unrealized gain on investments, net of tax of $0 and $49 for the nine months ended September 30, 2015 and September 30, 2014, respectively			0	78
Comprehensive (loss) income	65,782	85,613	3,290	(16,144)
Less: Comprehensive (income) loss attributable to noncontrolling interest			0	299
Comprehensive (loss) income attributable to McGraw-Hill Global Education Intermediate Holdings, LLC	$ 65,782	$ 85,613	$ 3,290	$ (15,845)

Consolidated Statements of Com4

Consolidated Statements of Comprehensive Income (Loss) (Parenthetical) (Unaudited) - USD ($) $ in Thousands	9 Months Ended
	Sep. 30, 2015	Sep. 30, 2014
Statement of Comprehensive Income [Abstract]
Tax on investment gain	$ 0	$ 49

Consolidated Balance Sheets (Un

Consolidated Balance Sheets (Unaudited) - USD ($) $ in Thousands	Sep. 30, 2015	Dec. 31, 2014	Sep. 30, 2014	Dec. 31, 2013
Current assets
Cash and equivalents	$ 194,950	$ 232,098	$ 147,034	$ 253,390
Accounts receivable, net of allowance for doubtful accounts of $11,523 and $13,957 and sales returns of $170,892 and $181,927 at September 30, 2015 and December 31, 2014, respectively	254,097	204,072
Due from related party	7,230	0
Inventories, net	74,188	76,992
Deferred income taxes	30,658	31,538
Prepaid and other current assets	40,540	30,710
Total current assets	601,663	575,410
Pre-publication costs, net	68,399	80,980
Property, plant and equipment, net	92,204	91,926
Goodwill	474,251	477,324
Other intangible assets, net	834,674	906,665
Investments	6,586	9,219
Deferred income taxes non-current	35,170	43,440
Other non-current assets	108,158	101,510
Total assets	2,221,105	2,286,474
Current liabilities
Accounts payable	116,089	130,465
Accrued royalties	40,334	101,827
Accrued compensation and contributions to retirement plans	41,369	66,243
Deferred revenue	186,721	124,551
Current portion of long-term debt	6,790	6,880
Due to related parties	0	889
Other current liabilities	103,874	89,160
Total current liabilities	495,177	520,015
Long-term debt	1,445,738	1,447,473
Deferred income taxes	7,993	8,288
Other non-current liabilities	39,466	48,839
Total liabilities	$ 1,988,374	$ 2,024,615
Commitments and contingencies
Equity
Member's equity	$ 338,463	$ 370,881
Accumulated deficit	(66,242)	(82,137)
Accumulated other comprehensive loss	(39,490)	(26,885)
Total equity	232,731	261,859
Total liabilities and equity	$ 2,221,105	$ 2,286,474

Consolidated Balance Sheets (Pa

Consolidated Balance Sheets (Parenthetical) (Unaudited) - USD ($) $ in Thousands	Sep. 30, 2015	Dec. 31, 2014
Statement of Financial Position [Abstract]
Allowance for doubtful accounts	$ 11,523	$ 13,957
Sales returns	$ 170,892	$ 181,927

Consolidated Statements of Cash

Consolidated Statements of Cash Flows (Unaudited) - USD ($) $ in Thousands	9 Months Ended
	Sep. 30, 2015	Sep. 30, 2014
Operating activities
Net (loss) income including noncontrolling interests	$ 15,895	$ (13,838)
Adjustments to reconcile net loss including noncontrolling interests to net cash provided by operating activities
Depreciation (including amortization of technology projects)	19,477	10,958
Amortization of intangibles	69,403	79,007
Amortization of pre-publication costs	41,968	46,044
Provision for losses on accounts receivable	2,000	1,294
Deferred income taxes	7,992	(14,469)
Stock-based compensation	7,357	5,164
Amortization of debt discount	3,616	4,060
Amortization of deferred financing costs	7,366	9,673
Restructuring charges	1,668	11,788
Other	7,271	6,474
Changes in operating assets and liabilities, net of the effect of acquisitions
Accounts receivable	(56,877)	(29,798)
Due to/from related party	(7,221)	0
Inventories	(5,557)	(17,574)
Prepaid and other current assets	(9,961)	3,513
Accounts payable and accrued expenses	(97,051)	(50,290)
Deferred revenue	62,746	33,726
Other current liabilities	15,159	22,510
Net change in prepaid and accrued income taxes	(2,466)	(3,507)
Net change in operating assets and liabilities	(14,968)	(22,123)
Cash provided by (used for) operating activities	67,817	82,612
Investing activities
Investment in pre-publication costs	(30,921)	(35,335)
Capital expenditures	(30,969)	(15,317)
Acquisitions	(6,879)	(56,453)
Proceeds from sale of investments	12,500	3,304
Proceeds from dispositions	81	8,882
Cash provided by (used for) investing activities	(56,188)	(94,919)
Financing activities
Payment of term loan	(5,440)	(40,160)
Dividend payment to MHGE Parent	(39,822)	0
Dividends paid to noncontrolling interests	0	(169)
Payment of deferred purchase price	0	(53,500)
Dividend on restricted stock units	(300)	0
Cash provided by (used for) financing activities	(45,562)	(93,829)
Effect of exchange rate changes on cash	(3,215)	(220)
Net change in cash and cash equivalents	(37,148)	(106,356)
Cash and cash equivalents at the beginning of the period	232,098	253,390
Cash and cash equivalents, ending balance	194,950	147,034
Supplemental disclosures
Interest expense paid	66,657	76,333
Income taxes paid	$ 4,879	$ 9,062

Basis of Presentation and Accou

Basis of Presentation and Accounting Policies	9 Months Ended
	Sep. 30, 2015
Organization, Consolidation and Presentation of Financial Statements [Abstract]
Basis of Presentation and Accounting Policies	Basis of Presentation and Accounting Policies On March 22, 2013, MHE Acquisition, LLC (“AcquisitionCo”), a wholly-owned subsidiary of McGraw-Hill Education, Inc. (formerly known as Georgia Holdings, Inc.), acquired all of the outstanding equity interests of certain subsidiaries of The McGraw-Hill Companies, Inc. (“MHC”) for $2,184,071 in cash (the “Acquired Business”). The Acquired Business included all of MHC’s educational materials and learning solutions business, which is comprised of two elements (i) the Higher Education, Professional, and International Group (the “HPI business”), which includes post-secondary education and professional products both in the U.S. and internationally and (ii) the School Education Group business (the “SEG business”), which includes school and assessment products targeting students in the pre-kindergarten through secondary school market. The purchase price was allocated as $1,711,348 and $472,723 to the HPI business and the SEG business, respectively based on their fair values. We refer to the purchase of the Acquired Business as the “Founding Acquisition”. As of completion of the Founding Acquisition, Apollo Global Management, LLC (the “Sponsor”), certain co-investors and certain members of management directly or indirectly owned all of the equity interests of AcquisitionCo. McGraw-Hill Global Education Intermediate Holdings, LLC (the “Company,” “the Successor” or “MHGE Intermediate”) and its wholly owned subsidiary McGraw-Hill Global Education Holdings, LLC (“MHGE Holdings”) were created to facilitate the Founding Acquisition. In connection with the Founding Acquisition, a restructuring (the “Restructuring”) was completed, the result of which was that the HPI business and the SEG business became held by different legal entities. The HPI business became held by MHGE Holdings, while the SEG business became held by McGraw-Hill School Education Intermediate Holdings, LLC (“MHSE Holdings”), a separate wholly owned subsidiary of MHE US Holdings LLC, our direct parent (“Parent”). In addition, concurrently with the closing of the Founding Acquisition, MHGE Holdings entered into certain credit facilities which are described in Note 2 - The Founding Transactions. MHSE Holdings is financed through separate credit facilities. MHGE Holdings nor its parent companies guarantee or provide any collateral to the financing for MHSE Holdings, and MHSE Holdings does not guarantee or provide collateral to the financing of MHGE Holdings or its parent companies. The terms “we,” “our,” and “us” used herein refer to the Company. Principles of Consolidation The accompanying consolidated financial statements have been prepared in accordance with U.S. GAAP and all significant intercompany transactions and balances have been eliminated. In the opinion of management, the accompanying unaudited consolidated financial statements include all adjustments (consisting of normal recurring accruals) considered necessary for a fair presentation. We record non-controlling interest in our consolidated financial statements to recognize the minority ownership interest in certain subsidiaries. Non-controlling interest in the earnings and losses of these subsidiaries represent the share of net income or loss allocated to our combined entities. Seasonality and Comparability Our revenues, operating profit and operating cash flows are affected by the inherent seasonality of the academic calendar, which varies by country. Changes in our customers’ ordering patterns may impact the comparison of our results in a quarter with the same quarter of the previous year, or in a fiscal year with the prior fiscal year, where our customers may shift the timing of material orders for any number of reasons, including, but not limited to, changes in academic semester start dates or changes to their inventory management practices. Use of Estimates The preparation of financial statements in conformity with U.S. GAAP requires management to make estimates and assumptions that affect the amounts reported in the financial statements and accompanying notes. Actual results could differ from those estimates. On an ongoing basis, we evaluate our estimates and assumptions, including those related to revenue recognition, allowance for doubtful accounts and sales returns, inventories, pre-publication costs, accounting for the impairment of long-lived assets (including other intangible assets), goodwill and indefinite-lived intangible assets, stock-based compensation, restructuring, income taxes and contingencies. Management further considered the accounting policy with regard to the purchase price allocation to assets and liabilities to be critical. This accounting policy, as more fully described in Note 3, encompasses significant judgments and estimates used in the preparation of these financial statements. Cash and Cash Equivalents Cash and cash equivalents include bank deposits and highly liquid investments with original maturities of three months or less that consist primarily of money market funds with unrestricted daily liquidity and fixed term time deposits. The balance also includes cash that is held by the Company outside the United States to fund international operations or to be reinvested outside of the United States. The investments and bank deposits are stated at cost, which approximates market value and were $194,950 and $232,098 as of September 30, 2015 and December 31, 2014 , respectively. These investments are not subject to significant market risk. Accounts Receivable Credit is extended to customers based upon an evaluation of the customer’s financial condition. Accounts receivable are recorded at net realizable value. Allowance for Doubtful Accounts and Sales Returns The allowance for doubtful accounts and sales returns reserves methodology is based on historical analysis, a review of outstanding balances and current conditions. In determining these reserves, we consider, among other factors, the financial condition and risk profile of our customers, areas of specific or concentrated risk as well as applicable industry trends or market indicators. The allowance for sales returns is a significant estimate, which is based on historical rates of return and current market conditions. The provision for sales returns is reflected as a reduction to “Revenues” in our consolidated statements of operations. Sales returns are charged against the reserve as products are returned to inventory. Accounts receivable losses for bad debt are charged against the allowance for doubtful accounts when the receivable is determined to be uncollectible. The change in the allowance for doubtful accounts is reflected as part of operating and administrative expenses in our consolidated statement of operations. Concentration of Credit Risk As of September 30, 2015 and December 31, 2014 , two customers comprised approximately 44% and 31% of the gross accounts receivable balance, respectively, which is reflective of concentration and seasonality in our industry. For the three months ended September 30, 2015, the Company had two customers that accounted for 20% and 17% of our gross revenues. For the three months ended September 30, 2014, the Company had two customers that accounted for 15% and 14% of our gross revenues. For the nine months ended September 30, 2015, the Company had two customers that accounted for 14% of our gross revenues. For the nine months ended September 30, 2014, the Company had two customers that accounted for 12% of our gross revenues. These customers were included within the Higher Education, Professional revenues, respectively. The loss of, or any reduction in sales from, a significant customer or deterioration in their ability to pay could harm our business and financial results. Inventories Inventories, consisting principally of books, are stated at the lower of cost (first-in, first-out) or market value. The majority of our inventories relate to finished goods. A significant estimate, the reserve for inventory obsolescence, is reflected in operating and administration expenses. In determining this reserve, we consider management’s current assessment of the marketplace, industry trends and projected product demand as compared to the number of units currently on hand. The reserves for inventory obsolescence were $37,209 and $38,893 as of September 30, 2015 and December 31, 2014 , respectively. Pre-publication Costs Pre-publication costs include both the cost of developing educational content and the development of assessment solution products. Costs incurred prior to the publication date of a title or release date of a product represent activities associated with product development. These may be performed internally or outsourced to subject matter specialists and include, but are not limited to, editorial review and fact verification, graphic art design and layout and the process of conversion from print to digital media or within various formats of digital media. These costs are capitalized when the costs can be directly attributable to a project or title and the title is expected to generate probable future economic benefits. Capitalized costs are amortized upon publication of the title over its estimated useful life of up to six years , with a higher proportion of the amortization typically taken in the earlier years. Amortization expenses for pre-publication costs are charged as a component of operating & administration expenses. In evaluating recoverability, we consider management’s current assessment of the marketplace, industry trends and the projected success of programs. Property, Plant and Equipment Property, plant and equipment are stated at cost less accumulated depreciation as of September 30, 2015 and December 31, 2014 . Depreciation and amortization are recorded on a straight-line basis, over the assets’ estimated useful lives. Buildings have an estimated useful life, for purposes of depreciation, of twenty-eight years. Furniture, fixtures and equipment are depreciated over periods not exceeding seven years . Leasehold improvements are amortized over the life of the lease or the life of the assets, whichever is shorter. The Company evaluates the depreciation periods of property, plant and equipment to determine whether events or circumstances warrant revised estimates of useful lives. Royalty Advances Royalty advances are initially capitalized and subsequently expensed as related revenues are earned or when the Company determines future recovery is not probable. The Company has a long history of providing authors with royalty advances, and it tracks each advance earned with respect to the sale of the related publication. Historically, the longer the unearned portion of the advance remains outstanding, the less likely it is that the Company will recover the advance through the sale of the publication, as the related royalties earned are applied first against the remaining unearned portion of the advance. The Company applies this historical experience to its existing outstanding royalty advances to estimate the likelihood of recovery. Additionally, the Company’s editorial staff reviews its portfolio of royalty advances at a minimum quarterly to determine if individual royalty advances are not recoverable for discrete reasons, such as the death of an author prior to completion of a title or titles, a Company decision to not publish a title, poor market demand or other relevant factors that could impact recoverability. Based on this information, the portion of any advance that we believe is not recoverable is expensed. Deferred Technology Costs We capitalize certain software development and website implementation costs. Capitalized costs only include incremental, direct costs of materials and services incurred to develop the software after the preliminary project stage is completed, funding has been committed and it is probable that the project will be completed and used to perform the function intended. Incremental costs are expenditures that are out-of-pocket to us and are not part of an allocation or existing expense base. Software development and website implementation costs are expensed as incurred during the preliminary project stage. Capitalized costs are amortized from the year the software is ready for its intended use over its estimated useful life, three to seven years , using the straight-line method. Periodically, we evaluate the amortization methods, remaining lives and recoverability of such costs. Capitalized software development and website implementation costs are included in other non-current assets in the consolidated balance sheets and are presented net of accumulated amortization. Gross deferred technology costs were $61,516 and $42,030 as of September 30, 2015 and December 31, 2014 , respectively. Accumulated amortization of deferred technology costs were $20,200 and $12,433 as of September 30, 2015 and December 31, 2014 . Accounting for the Impairment of Long-Lived Assets (Including Other Intangible Assets) We evaluate long-lived assets for impairment whenever events or changes in circumstances indicate that the carrying amount of an asset may not be recoverable. Upon such an occurrence, recoverability of assets to be held and used is measured by comparing the carrying amount of an asset to current forecasts of undiscounted future net cash flows expected to be generated by the asset. If the carrying amount of the asset exceeds its estimated future cash flows, an impairment charge is recognized equal to the amount by which the carrying amount of the asset exceeds the fair value of the asset. Long-lived assets held for sale are written down to fair value, less cost to sell. Fair value is determined based on market evidence, discounted cash flows, appraised values or management’s estimates, depending upon the nature of the assets. There were no impairments of long-lived assets for the three and nine months ended September 30, 2015 and September 30, 2014 , respectively. Goodwill and Indefinite-Lived Intangible Assets Goodwill represents the excess of purchase price and related costs over the fair value of identifiable assets acquired and liabilities assumed in a business combination. Indefinite-lived intangible assets consist of the Company's acquired brands. Goodwill and indefinite-lived intangible assets are not amortized, but instead are tested for impairment annually during the fourth quarter each year, or more frequently if events or changes in circumstances indicate that the asset might be impaired. We have three reporting units, Higher Education, Professional and International with goodwill and indefinite-lived intangible assets that are evaluated for impairment. We initially perform a qualitative analysis evaluating whether there are events or circumstances that provide evidence that it is more likely than not that the fair value of any of our reporting units or indefinite-lived intangible assets are less than their carrying amount. If, based on our evaluation we do not believe that it is more likely than not that the fair value of any of our reporting units or indefinite-lived intangible assets are less than their carrying amount, no quantitative impairment test is performed. Conversely, if the results of our qualitative assessment determine that it is more likely than not that the fair value of any of our reporting units or indefinite-lived intangible assets are less than their respective carrying amounts we perform a two-step quantitative impairment test. During the first step, the estimated fair value of the reporting units are compared to their carrying value including goodwill and the estimated fair value of the intangible assets is compared to their carrying value. Fair values of the reporting units are estimated using the income approach, which incorporates the use of a discounted free cash flow analysis, and are corroborated using the market approach, which incorporates the use of revenue and earnings multiples based on market data. The discounted free cash flow analyses are based on the current operating budgets and estimated long-term growth projections for each reporting unit. Future cash flows are discounted based on a market comparable weighted average cost of capital rate for each reporting unit, adjusted for market and other risks where appropriate. Fair values of indefinite-lived intangible assets are estimated using avoided royalty discounted free cash flow analyses. Significant judgments inherent in these analyses include the selection of appropriate royalty and discount rates and estimating the amount and timing of expected future cash flows. The discount rates used in the discounted free cash flow analyses reflect the risks inherent in the expected future cash flows generated by the respective intangible assets. The royalty rates used in the discounted free cash flow analyses are based upon an estimate of the royalty rates that a market participant would pay to license the Company's trade names and trademarks. If the fair value of the reporting units or indefinite-lived intangible assets are less than their carrying value, a second step is performed which compares the implied fair value of the reporting unit’s goodwill or indefinite-lived intangible assets to the carrying value. The fair value of the goodwill or indefinite-lived intangible assets is determined based on the difference between the fair value of the reporting unit and the net fair value of the identifiable assets and liabilities of the reporting unit or carrying value of the indefinite-lived intangible asset. If the implied fair value of the goodwill or indefinite-lived intangible assets is less than the carrying value, the difference is recognized as an impairment charge. Significant judgments inherent in this analysis include estimating the amount and timing of future cash flows and the selection of appropriate discount rates, royalty rate and long-term growth rate assumptions. Changes in these estimates and assumptions could materially affect the determination of fair value for each reporting unit and indefinite-lived intangible asset and for some of the reporting units and indefinite-lived intangible assets could result in an impairment charge, which could be material to our financial position and results of operations. There were no impairments of goodwill and indefinite-lived intangible assets for the three and nine months ended September 30, 2015 and September 30, 2014 , respectively. Fair Value Measurements In accordance with authoritative guidance for fair value measurements, certain assets and liabilities are required to be recorded at fair value. Fair value is defined as the amount that would be received to sell an asset or transfer a liability in an orderly transaction between market participants. A fair value hierarchy has been established which requires us to maximize the use of observable inputs and minimize the use of unobservable inputs when measuring fair value. The three levels of inputs used to measure fair value are as follows: • Level 1 - Unadjusted quoted prices in active markets for identical assets or liabilities. • Level 2 - Observable inputs other than Level 1 prices, such as quoted prices for similar assets or liabilities; quoted prices in markets that are not active; or other inputs that are observable or can be corroborated by observable market data for substantially the full term of the asset or liabilities. • Level 3 - Unobservable inputs that are supported by little or no market activity and that are significant to the fair value of the assets or liabilities. Foreign Currency Translation We have operations in many foreign countries. For most international operations, the local currency is the functional currency. For international operations that are determined to be extensions of the U.S. operations or where a majority of revenue and/or expenses is USD denominated, the United States dollar is the functional currency. For local currency operations, assets and liabilities are translated into United States dollars using end-of-period exchange rates, and revenue and expenses are translated into United States dollars using weighted-average exchange rates. Foreign currency translation adjustments are accumulated in a separate component of equity. Stock-Based Compensation The Company issues Georgia Holdings, Inc. stock options and other stock-based compensation to eligible employees, directors and consultants and accounts for these transactions under the provisions of Accounting Standards Codification ("ASC") 718, Compensation - Stock Compensation . For equity awards, total compensation cost is based on the grant date fair value. For liability awards, total compensation cost is based on the fair value of the award on the date the award is exercised and delivered. For performance-based options issued, the value of the instrument is measured at the grant date as the fair value of the common stock and expensed over the vesting term when the performance targets are considered probable of being achieved. The Company recognizes stock-based compensation expense for all awards, on a straight-line basis, over the service period required to earn the award, which is typically the vesting period. Revenue Recognition Revenue is recognized as it is earned when goods are shipped to customers or services are rendered. We consider amounts to be earned once evidence of an arrangement has been obtained, services are performed, fees are fixed or determinable and collectability is reasonably assured. Arrangements with multiple deliverables Revenue relating to products that provide for more than one deliverable is recognized based upon the relative fair value to the customer of each deliverable as each deliverable is provided. Revenue relating to agreements that provide for more than one service is recognized based upon the relative fair value to the customer of each service component as each component is earned. If the fair value to the customer for each service is not objectively determinable, we make our best estimate of the services’ stand-alone selling price and recognize revenue as earned as the services are delivered. Because we determine the basis for allocating consideration to each deliverable primarily on prices experienced from completed sales, over time the portion of consideration allocated to each deliverable in a multiple deliverable arrangement may increase or decrease depending on the most recent selling price of a comparable product or service sold on a stand-alone basis. For example, as the demand for, and prevalence of, digital products increases, we may be required to increase the amount of consideration allocable to digital products included in multiple deliverable arrangements because the fair value of such products or services may increase relative to other products or services bundled in the arrangement. Conversely, in the event that demand for our print products decreases, thereby causing us to experience reduced prices on our print products, we may be required to allocate less consideration to our print products in our arrangements that include multiple deliverables. Subscription-based products Subscription income is recognized over the related subscription period that the subscription is available and is used by the customer. Subscription revenue received or receivable in advance of the delivery of services or publications is included in deferred revenue. Incremental costs that are directly related to the subscription revenue are deferred and amortized over the subscription period. Included among the underlying assumptions related to our estimates that impact the recognition of subscription income is the period that our subscriptions are accessed by our customers, the extent of our responsibility to provide access to our subscription-based products, and the extent of complementary support services customers demand to access our products. Service arrangements Revenue relating to arrangements that provide for more than one service is recognized based upon the relative fair value to the customer of each service component as each component is earned. Such arrangements may include digital products bundled with traditional print products, obligations to provide products and services in the future at no additional cost, and periodic training pertinent to products and services previously provided. If the fair value to the customer for each service is not objectively determinable, we make our best estimate of the services’ stand-alone selling price and recognize revenue as earned as the services are delivered. Losses on contracts are recognized in the period in which the loss first becomes foreseeable. Contract losses are measured as the amount that the estimated total costs to complete the contract exceed the estimated total revenues that will be generated by the contract. Shipping and Handling Costs All amounts billed to customers in a sales transaction for shipping and handling are classified as revenue. Shipping and handling costs are also a component of cost of goods sold. Income Taxes The Company’s operations are subject to United States federal, state and local income taxes, and foreign income taxes. The United States federal income tax return is filed as a consolidated group under McGraw-Hill Education, Inc. (formerly known as Georgia Holdings, Inc.). Net operating losses and other tax attributes are characterized as realized or realizable by MHGE Holdings when the attributes are utilized by the consolidated federal group following the Company’s “Benefits-for-Loss” allocation method. We determine the provision for income taxes using the asset and liability approach. Under this approach, deferred income taxes represent the expected future tax consequences of temporary differences between the carrying amounts and tax bases of assets and liabilities. Valuation allowances are established when management determines that it is more-likely-than not that some portion or all of the deferred tax asset will not be realized. Management evaluates the weight of both positive and negative evidence in determining whether a deferred tax asset will be realized. Management will look to a history of losses, future reversal of existing taxable temporary differences, taxable income in carryback years, feasibility of tax planning strategies, and estimated future taxable income. The valuation allowance can also be affected by changes in tax laws and changes to statutory tax rates. We prepare and file tax returns based on management’s interpretation of tax laws and regulations. As with all businesses, our tax returns are subject to examination by various taxing authorities. Such examinations may result in future tax assessments based on differences in interpretation of the tax law and regulations. We adjust our estimated uncertain tax positions reserves based on audits by and settlements with various taxing authorities as well as changes in tax laws, regulations, and interpretations. We recognize interest and penalties on uncertain tax positions as part of interest expense and operating expenses, respectively. Contingencies We accrue for loss contingencies when both (a) information available prior to issuance of the financial statements indicates that it is probable that a liability had been incurred at the date of the financial statements and (b) the amount of loss can reasonably be estimated. When we accrue for loss contingencies and the reasonable estimate of the loss is within a range, we record its best estimate within the range. We disclose an estimated possible loss or a range of loss when it is at least reasonably possible that a loss may have been incurred. Neither an accrual nor disclosure is required for losses that are deemed remote. Recent Accounting Standards In July 2015, the Financial Accounting Standards Board (“FASB”) issued Accounting Standard Update (“ASU”) No. 2015-11 - Inventory (Topic 330) Related to Simplifying the Measurement of Inventory , that applies to all inventory except that which is measured using last-in, first-out (LIFO) or the retail inventory method. Inventory measured using first-in, first-out (FIFO) or average cost is within the scope of the new guidance and should be measured at the lower of cost and net realizable value. Net realizable value is the estimated selling price in the ordinary course of business, less reasonably predictable cost of completion, disposal, and transportation. Subsequent measurement is unchanged for inventory measured using LIFO of the retail inventory method. The amendments are effective for public business entities for fiscal years beginning after December 15, 2016, including interim periods within those fiscal years. The new guidance should be applied prospectively, and earlier application is permitted as of the beginning of an interim or annual reporting period. The Company is evaluating the impact of the standard on its consolidated financial statements. In June 2015, the FASB issued ASU No. 2015-10 - Technical Corrections and Improvements . The amendments in this ASU cover a wide range of topics in the Codification. The reason for each amendment is provided before each amendment for clarity and ease of understanding. The amendments generally related to: (1) Amendments related to differences between original guidance and the codification, (2) Guidance clarification and reference corrections, (3) Simplification and (4) Minor improvements. These amendments improve the guidance and are not expected to have a significant effect on current accounting practice or create a significant administrative cost to most entities. Transition guidance varies based on the amendments in this ASU. The amendments in this ASU that require transition guidance are effective for all entities for fiscal years, and interim periods within those fiscal years, beginning after December 15, 2015. Early adoption is permitted, including adoption in an interim period. All other amendments will be effective upon the issuance of this ASU. The adoption of this standard is not expected to have a material impact on the Company’s consolidated financial statements. In April 2015, the FASB issued ASU No. 2015-03 - Simplifying the Presentation of Debt Issuance Costs . This ASU changes the presentation of debt issuance costs by requiring an entity to present such costs as a direct deduction from the related debt liability rather than as an asset. Amortization of the costs will continue to be reported as interest expense. This guidance is effective for interim and annual reporting periods beginning after December 15, 2015. Early adoption is permitted. The Company is currently evaluating the effect that the updated standard will have on its consolidated balance sheets. In January 2015, the FASB issued ASU No. 2015-01 (Topic 225-20) - Income Statement—Extraordinary and Unusual Items which eliminates the concept of extraordinary items. This guidance removes the requirement to assess whether an event or transaction is both unusual in nature and infrequent in occurrence and to separately present any such items on the statement of operations after income from continuing operations. Rather, such items will either be presented as a separate component of income from continuing operations or disclosed in the notes to the financial statements. This guidance is effective for interim and annual periods beginning after December 15, 2015. Early adoption is permitted provided that the guidance is applied from the beginning of the fiscal year of adoption. The adoption of this guidance will not have a material impact on the Company's consolidated financial statements. In August 2014, the FASB issued ASU No. 2014-15 - Disclosure of Uncertainties about an Entity’s Ability to Continue as a Going Concern to provide guidance on management’s responsibility in evaluating whether there is substantial doubt about a company’s ability to continue as a going concern and to provide related footnote disclosures. This update is effective for the annual period ending after December 15, 2016, and for annual periods and interim periods thereafter. Early application is permitted. The adoption of this guidance will not have a material impact on the Company’s consolidated financial statements. In June 2014, the FASB issued ASU No. 2014-12 (Topic 718) - Compensation-Stock Compensation: Accounting for Share-Based Payments When the Terms of an Award Provide That a Performance Target Could Be Achieved after the Requisite Service Period (a consensus of the FASB Emerging Issues Task Force). This ASU clarifies that a performance target that affec

The Founding Transactions

The Founding Transactions	9 Months Ended
	Sep. 30, 2015
Organization, Consolidation and Presentation of Financial Statements [Abstract]
The Founding Transactions	The Founding Transactions As discussed in Note 1, the Founding Acquisition was completed on March 22, 2013 and financed by: • Borrowings under MHGE Holdings senior secured credit facilities (the “Senior Facilities”), consisting of a $810,000 , 6 -year senior secured term loan credit facility (the “term loan facility”), all of which was drawn at closing and a $240,000 , 5 -year senior secured revolving credit facility (“revolving credit facility”), $35,000 of which was drawn at closing; • Issuance by MHGE Holdings and McGraw-Hill Global Education Finance, Inc., a wholly owned subsidiary of MHGE (together with MHGE Holdings, the “Issuers”) of $800,000 , 9.75% first-priority senior secured notes due 2021 (the “Notes”); and • Equity contribution of $950,000 from Parent funded by the Sponsor, co-investors and management. The Founding Acquisition occurred simultaneously with the closing of the financing transactions and equity investments described above. The Founding Acquisition, related financing and payment of any costs related to these transactions are collectively herein referred to as the Founding Transactions.

The Founding Acquisition

The Founding Acquisition	9 Months Ended
	Sep. 30, 2015
The Founding Acquisition, MHGE Intermediate
Business Acquisition [Line Items]
Business Combination	The Founding Acquisition The Founding Acquisition was accounted for as a business combination in accordance with ASC 805, Business Combinations . The Founding Acquisition and the determination of fair value of the assets acquired and liabilities assumed was recorded as of March 22, 2013 based on the purchase price of $1,711,348 . As a result of the Founding Acquisition, goodwill of $350,050 was recorded on the Successor's balance sheet. The Company has finalized the allocation of goodwill to each of its reporting units. The sources and uses of funds in connection with the Founding Transactions are summarized below: Sources Proceeds from term loan facility $ 785,700 Proceeds from revolving credit facility 35,000 Proceeds from Notes 789,096 Proceeds from equity contributions 950,000 Total sources $ 2,559,796 Uses Equity purchase price $ 1,711,348 Transaction fees and expenses 131,339 Cash to balance sheet 88,255 Distribution to Parent 628,854 Total uses $ 2,559,796 Purchase Price The Founding Acquisition has been accounted for using the acquisition method of accounting which requires assets acquired and liabilities assumed to be recognized at their fair values as of the acquisition date, with any excess of the purchase price attributed to goodwill. The fair values have been determined based upon assumptions related to the future cash flows, discount rates and asset lives utilizing currently available information. On October 16, 2013 the working capital adjustment was finalized with MHC and the Company's share of the proceeds of the working capital adjustment was $28,099 . The table below summarizes the fair values of the assets acquired and liabilities assumed at the date of acquisition: Cash and equivalents $ 19,633 Accounts receivable and other current assets 132,750 Inventory 235,608 Pre-publication costs 109,064 Property, plant and equipment 102,836 Identifiable intangible assets 998,007 Other noncurrent assets 56,226 Accounts payable and accrued expenses (143,076 ) Deferred revenue (42,339 ) Other current liabilities (49,767 ) Deferred income tax liability (15,846 ) Other long-term liabilities (19,573 ) Noncontrolling interests (22,225 ) Goodwill 350,050 Purchase price $ 1,711,348 Residual goodwill consists primarily of an assembled workforce and other intangible assets that do not qualify for separate recognition. The fair values of the finite acquired intangible assets will be amortized over their useful lives, which is consistent with the estimated useful life considerations used in determining their fair values. Customer and technology intangibles are amortized on a straight-line basis while content intangibles are amortized using the sum of the years digits method. Fair Value Useful Lives Brands $ 283,000 Indefinite Customers 140,000 11 - 14 years Content 566,007 8 - 14 years Technology 9,000 5 years Amortization expense of $19,987 and $21,514 was recorded in the three months ended September 30, 2015 and September 30, 2014 , respectively. Amortization expense of $61,106 and $72,752 was recorded in the nine months ended September 30, 2015 and September 30, 2014 , respectively. The Founding Acquisition was a taxable acquisition of the assets of domestic subsidiaries and a non-taxable acquisition of the stock of international subsidiaries for U.S. income tax purposes. Deferred income tax liability of $15,846 has been provided for the difference in fair value of international assets and liabilities over the carryover tax basis. Distribution to Parent The total amount of $628,854 allocated to MHSE Holdings includes purchase price as well as the working capital adjustment made at closing and is classified as "Distribution to Parent" in the consolidated financial statements. MHSE Holdings is not included in these consolidated financial statements.

ALEKS Acquisition

ALEKS Acquisition	9 Months Ended
	Sep. 30, 2015
ALEKS Corporation
Business Acquisition [Line Items]
Business Combination	ALEKS Acquisition On August 1, 2013, the Company acquired all of the outstanding shares of ALEKS Corporation, a developer of adaptive learning technology for the higher education and K-12 education markets. Prior to the acquisition, the Company had a long-term royalty-based partnership with ALEKS Corporation where ALEKS Corporation technology solutions were incorporated into the Company’s Higher Education’s products. ALEKS Corporation was acquired for a purchase price of $103,500 ; of which $50,000 was paid in cash at closing. The remaining $53,500 was paid one year after closing on August 1, 2014 of which $15,000 was held in escrow for six months. As of December 31, 2013, $53,500 was included in other current liabilities in the consolidated balance sheet. The Company has finalized the determination of the fair values of the assets acquired and liabilities assumed upon acquisition. On October 31, 2013, the working capital adjustment was finalized and the Company's share of the proceeds of the working capital adjustment was $1,422 . The $50,000 paid at closing and subsequent payments were financed by a combination of cash on hand and borrowing under the revolving credit facility. Costs incurred in connection with the acquisition for the year ended December 31, 2013 were $2,549 and are included in operating and administrative expenses in the consolidated statements of operations. Subsequent to the closing, the ALEKS Corporation entered into a reseller agreement with McGraw-Hill School Education Holdings, LLC ("MHSE"), which is a separate wholly owned subsidiary of our Parent, granting MHSE exclusive rights to sell ALEKS products in the K-12 market. MHSE paid $25,500 to ALEKS Corporation for the exclusivity provision, which is being recognized over five years and renewable for no additional fee after five years , and paid a royalty advance of $12,500 . The royalty rate is 15% on net sales. The companies received a fairness opinion from a third party valuation firm on the terms of the transaction. The table below summarizes the estimated fair values of the assets acquired and liabilities assumed at the date of acquisition: Tangible assets 9,365 Identifiable intangible assets 40,700 Deferred revenue (2,754 ) Other liabilities (23,083 ) Goodwill 79,272 Purchase price $ 103,500 Residual goodwill consists primarily of an assembled workforce and other intangible assets that do not qualify for separate recognition. Due to the form of the acquisition, none of the purchase price was allocated to goodwill for tax purposes. The goodwill of $79,272 has been assigned to the Higher Education segment of the Company. The fair values of the acquired intangible assets will be amortized on a straight-line basis over their useful lives which is consistent with the estimated useful life considerations used in determining their fair values. Fair Value Useful Lives Trade Name $ 5,300 10 years Customers 7,100 7 years Technology 28,300 7 years Amortization expense of $1,397 and $2,366 was recorded in the three months ended September 30, 2015 and 2014, respectively. Amortization expense of $4,191 and $1,704 was recorded in the nine months ended September 30, 2015 and 2014, respectively.

LearnSmart Acquisition

LearnSmart Acquisition	9 Months Ended
	Sep. 30, 2015
LearnSmart
Business Acquisition [Line Items]
Business Combination	LearnSmart Acquisition On February 6, 2014 the Company acquired the remaining 80% that it did not already own of LearnSmart , a Danish Company and developer of adaptive learning technology for the higher education market for total consideration of $78,049 . Prior to the acquisition, the Company had a long-term royalty-based relationship with LearnSmart . The Company had purchased the other 20% stake in LearnSmart in January 2013. Consideration for the acquisition of the remaining 80% was $29,003 in cash at closing, with the remainder in shares of Georgia Holdings preferred stock, including shares held in escrow, and shares subject to an earn-out based on several financial measures which we expect to be met and therefore all earn out shares have been valued in member's equity. The tranche of shares to be earned in 2014 were fully earned. Pursuant to the purchase agreement, consulting payments are due to the founders of LearnSmart of $9,800 for a designated project and deliverable, of which $2,700 is contingent upon a successful completion of a project deliverable and $5,000 expense reimbursement over a four year period. These costs are expensed as incurred. There is a gain of $7,329 , for the nine months ended September 30, 2014, in other income reflecting a fair value adjustment based on the purchase price of the additional 80% interest on the original 20% stake which fair value is $15,866 , making the total transaction value equal to $93,915 . The Company determined the acquisition date fair value of the previously held equity interest in LearnSmart using the income approach, including consideration of a control premium, which requires the Company to make estimates and assumptions regarding future cash flows. The Company has finalized the determination of the fair values of the assets acquired and liabilities assumed upon acquisition. On July 18, 2014, the working capital adjustment was finalized and the Company's payment for the working capital adjustment was $959 . The table below summarizes the estimated fair values of the assets acquired and liabilities assumed at the date of acquisition: Tangible assets $ 1,969 Identifiable intangible assets 44,800 Other liabilities (7,609 ) Goodwill 54,755 Purchase price $ 93,915 Residual goodwill consists primarily of an assembled workforce and other intangible assets that do not qualify for separate recognition. Due to the form of the acquisition, none of the purchase price was allocated to goodwill for tax purposes. The goodwill of $54,755 has been assigned to the Higher Education segment of the Company. The fair values of the acquired intangible assets will be amortized on a straight-line basis over their useful lives of four and seven years, which is consistent with the estimated useful life considerations used in determining their fair values. Fair Value Useful Lives Technology $ 42,200 7 years Non - Compete 2,600 4 years Amortization expense of $1,348 and $1,658 was recorded in the three months ended September 30, 2015 and 2014, respectively. Amortization expense of $3,907 and $4,528 was recorded in the nine months ended September 30, 2015 and 2014, respectively.

Ryerson Acquisition

Ryerson Acquisition	9 Months Ended
	Sep. 30, 2015
Ryerson
Business Acquisition [Line Items]
Business Combination	Ryerson Acquisition On June 17, 2014, the Company acquired the remaining 30% interest in McGraw-Hill Ryerson, its Canadian subsidiary, and now owns all of the outstanding shares of the operation. The aggregate purchase price was approximately $27,450 . The excess of the purchase price over the value of the non-controlling interest of $4,815 was recognized as an adjustment to member's equity. The Company determined the fair value of the previously held equity interest in Ryerson using an active market price on the date of acquisition.

Inventories

Inventories	9 Months Ended
	Sep. 30, 2015
Inventory Disclosure [Abstract]
Inventories	Inventories Inventories consist of the following: As of September 30, 2015 December 31, 2014 Raw materials $ 1,253 $ 1,160 Work-in-progress 2,039 3,380 Finished goods 108,105 111,345 111,397 115,885 Reserves (37,209 ) (38,893 ) Inventories, net $ 74,188 $ 76,992

Debt

Debt	9 Months Ended
	Sep. 30, 2015
Debt Disclosure [Abstract]
Debt	Debt Long-term debt consisted of the following: As of September 30, 2015 December 31, 2014 Term loan facility $ 660,920 $ 663,555 Notes 791,608 790,798 Less current portion of long term debt (6,790 ) (6,880 ) Long Term Debt (1) $ 1,445,738 $ 1,447,473 (1) Long term debt balances reflect face value of debt less the unamortized discount. Senior Facilities In connection with the Founding Transactions, on March 22, 2013, MHGE Holdings, our wholly owned subsidiary, together with the Company, entered into the Senior Facilities, which are governed by a first lien credit agreement as amended and restated, with Credit Suisse AG, as administrative agent, and the other agents and lenders, as parties thereto, that provided senior secured financing of up to $1,050,000 , consisting of: • the term loan facility in an aggregate principal amount of $810,000 with a maturity of six years ; and • the revolving credit facility in an aggregate principal amount of up to $240,000 with a maturity of five years , including both a letter of credit sub-facility and a swingline loan sub-facility. The amount available under the revolving credit facility at September 30, 2015 was $240,000 . On May 4, 2015, the Company made a voluntary principal payment of $325 and refinanced the term loan facility in the aggregate principal of $679,000 . The revised terms reduce the applicable LIBOR margin from 4.75% to 3.75% . The LIBOR floor remains at 1% . All other terms remain unchanged. Quarterly principal payments were reduced from $1,720 to $1,698 , maintaining the amortization rate at ¼ of 1% of the refinanced principal amount. On March 24, 2014, the Company made a voluntary principal payment of $35,000 and refinanced the term loan facility in the aggregate principal of $687,925 . The revised terms reduce the LIBOR floor from 1.25% to 1.0% and the applicable LIBOR margin from 7.75% to 4.75% . The maturity date did not change but quarterly principal payments were reduced from $2,025 to $1,720 , maintaining the amortization rate at ¼ of 1% of the refinanced principal amount. The interest rate on the borrowings under the Senior Facilities is based on LIBOR or Prime, plus an applicable margin. The interest rate was 4.75% at September 30, 2015 for the term loan facility and there were no outstanding borrowings under the revolving credit facility. The term loan facility and the revolving credit facility were issued at a discount of 3% and 2% , respectively. Debt issuance costs and the discount are amortized over the term of the respective facility using the effective interest method and are included in interest expense, net within the consolidated statements of operations. The amount of amortization included in interest expense, net was $3,884 and $3,371 for the three months ended September 30, 2015 and September 30, 2014 , respectively. The amount of amortization included in interest expense, net was $8,644 and $9,239 for the nine months ended September 30, 2015 and September 30, 2014 , respectively. The term loan facility requires quarterly amortization payments totaling 1% per annum of the refinanced principal amount of the facility, with the balance payable on the final maturity date. The term loan facility also includes customary mandatory prepayments requirements based on certain events such as asset sales, debt issuances, and defined levels of free cash flows. All obligations under the Senior Facilities are guaranteed by the Parent, the Company and each of MHGE Holdings existing and future direct and indirect material, wholly owned domestic subsidiaries and are secured by first priority lien on substantially all tangible and intangible assets of MHGE Holdings and each subsidiary guarantor, all of the MHGE Holdings capital stock and the capital stock of each subsidiary guarantor and 65% of the capital stock of the first-tier foreign subsidiaries that are not subsidiary guarantors, in each case subject to exceptions. The revolving credit facility includes a springing financial maintenance covenant that requires MHGE Holdings net first lien leverage ratio not to exceed 7.00 to 1.00 (the ratio of consolidated net debt secured by first-priority liens on the collateral to Adjusted EBITDA, as defined in the First Lien Credit Agreement, of MHGE Holdings and its consolidated subsidiaries). The covenant will be tested quarterly when the revolving credit facility is more than 20% drawn (including outstanding letters of credit), beginning with the fiscal quarter ended June 30, 2013, and will be a condition to drawings under the revolving credit facility (including for new letters of credit) that would result in more than 20% drawn thereunder. As of September 30, 2015 , the borrowings under the revolving credit facility were less than 20% , and so the covenant was not in effect. Adjusted EBITDA reflects EBITDA as defined in the First Lien Credit Agreement. Solely for the purpose of calculating the springing financial covenant, pre-publication investments should be excluded from the calculation of Adjusted EBITDA. The fair value of the term loan facility was approximately $676,450 and $677,640 as of September 30, 2015 and December 31, 2014 , respectively. The Company estimates the fair value of the term loan facility utilizing the market quotations for debt that have quoted prices in active markets. Since the term loan facility does not trade of a daily basis in an active market, the fair value estimates are based on market observable inputs based on borrowing rates currently available for debt with similar terms and average maturities, based on fair value hierarchy established in accordance with authoritative guidance for fair value measurements (Level 2). 9.75% First-Priority Senior Secured Notes due 2021 In connection with the Founding Acquisition, on March 22, 2013 , the Issuers issued $800,000 in principal amount of the Notes in a private placement. The Notes bear interest at a rate of 9.75% per annum, payable semi-annually in arrears on April 1 and October 1 of each year, commencing on October 1, 2013. The Notes were issued at a discount of 1.36% . Debt issuance costs and the discount are amortized over the term of the Notes using the effective interest method and are included in interest expense, net within the consolidated statements of operations. The amount of amortization included in interest expense, net was $1,208 and $1,498 for the three months ended September 30, 2015 and 2014, respectively. The amount of amortization included in interest expense, net was $3,561 and $4,494 for the nine months ended September 30, 2015 and 2014, respectively. The Issuers may redeem the Notes at its option, in whole or in part, at any time on or after April 1, 2016, at certain redemption prices. The Notes are fully and unconditionally guaranteed by the Parent, the Company and each of MHGE Holdings domestic restricted subsidiaries that guarantee the Senior Facilities. In addition, the Notes and the related guarantees are secured by first priority lien on the same collateral that secure the Senior Facilities, subject to certain exclusions. The Senior Facilities and the Notes contain certain customary affirmative covenants and events of default. In addition, the negative covenants in the Senior Facilities and the Notes limit MHGE Holdings and its restricted subsidiaries’ ability to, among other things: incur additional indebtedness or issue certain preferred shares, create liens on certain assets, pay dividends or prepay junior debt, make certain loans, acquisitions or investments, materially change its business, engage into transactions with affiliates, conduct asset sales, restrict dividends from subsidiaries or restrict liens, or merge, consolidate, sell or otherwise dispose of all or substantially all of MHGE Holdings assets. On March 24, 2014, the Company began paying an incremental 0.25% interest rate on the 9.75% First-Priority Senior Secured Notes because a registration statement for an exchange offer to exchange the initial Notes for registered Notes had not been declared effective prior to that date. The incremental interest continued to accrue until the exchange offer had been consummated. The Company’s registration statement for the exchange offer was declared effective on May 14, 2014, and the exchange offer was completed on June 19, 2014 ending the incremental 0.25% accrual on that date. The fair value of the Notes was approximately $870,000 and $890,000 as of September 30, 2015 and December 31, 2014 , respectively. The Company estimates the fair value of its Notes based on trades in the market. Since the Notes do not trade on a daily basis in an active market, the fair value estimates are based on market observable inputs based on borrowing rates currently available for debt with similar terms and average maturities (Level 2). Scheduled principal Payments The scheduled principal payments required under the terms of the Senior Facilities and the Notes as of September 30, 2015 were as follows: September 30, 2015 Remainder of 2015 $ 1,698 2016 6,792 2017 6,792 2018 6,792 2019 653,531 2020 and beyond 800,000 1,475,605 Less: Current portion 6,790 $ 1,468,815

Segment Reporting

Segment Reporting	9 Months Ended
	Sep. 30, 2015
Segment Reporting [Abstract]
Segment Reporting	Segment Reporting The Company manages and reports its businesses in the following four segments: • MHGE Higher Education : Provides instructional content, adaptive learning, assessment and institutional services to students, professors, provosts and presidents in the college, university and postgraduate markets in the United States and around the world. • MHGE Professional : Provides content and subscription-based information services for the professional business, medical, technical and education/test-preparation communities, including for professionals preparing for entry into graduate programs. • MHGE International : Leverages our global scale, brand recognition and extensive product portfolio to serve educational and professional markets around the world. MHGE International pursues numerous product models to drive growth, ranging from reselling primarily MHGE Higher Education and MHGE Professional offerings to creating locally developed product suites customized for each region. • MHGE Other : Includes certain transactions or adjustments that our Chief Operating Decision Maker (“CODM”) considers to be unusual and/or non-operational. The Company’s business segments are consistent with how management views the markets served by the Company. The CODM reviews their separate financial information to assess performance and to allocate resources. We measure and evaluate our reportable segments based on segment Adjusted Revenue and Adjusted EBITDA and believe they provide additional information to management and investors to measure our performance and evaluate our ability to service our indebtedness. We include the change in deferred revenue to GAAP revenue to arrive at Adjusted Revenue. Adjusted Revenue is a key metric that we use to manage our business as it reflects the sales activity in a given period and provides comparability during this time of digital transition. Furthermore, Adjusted Revenue incorporates the change in deferred revenue that is reflected in the calculation of Adjusted EBITDA. Therefore when the Company uses a margin calculation based on Adjusted EBITDA, the margin has to be based on Adjusted Revenue. We exclude from segment Adjusted EBITDA: interest expense (income), net, income tax (benefit) provision, depreciation, amortization and pre-publication amortization and certain transactions or adjustments that our CODM does not consider for the purposes of making decisions to allocate resources among segments or assessing segment performance. Although we exclude these amounts from segment Adjusted EBITDA, they are included in reported consolidated net income (loss) and are included in the reconciliation below. Adjusted Revenue and Adjusted EBITDA are not presentations made in accordance with U.S. GAAP and the use of the terms, Adjusted Revenue and Adjusted EBITDA, varies from others in our industry. Adjusted Revenue and Adjusted EBITDA should be considered in addition to, not as a substitute for, revenue and net income (loss), or other measures of financial performance derived in accordance with U.S. GAAP as measures of operating performance or cash flows as measures of liquidity. Segment asset disclosure is not used by the CODM as a measure of segment performance since the segment evaluation is driven by Adjusted EBITDA. As such, segment assets are not disclosed in the notes to the accompanying consolidated financial statements. The following tables set forth information about the Company’s operations by its four segments: Three Months Ended Nine months ended September 30, 2015 2014 2015 2014 Adjusted Revenue: MHGE Higher Education $ 386,183 $ 382,753 $ 630,031 612,194 MHGE Professional 30,241 30,593 82,316 87,587 MHGE International 100,155 114,109 216,727 $ 241,389 MHGE Other 61 208 61 208 Total Adjusted Revenue (1) 516,640 527,663 929,135 941,378 Change in deferred revenue (79,361 ) (65,535 ) (41,116 ) (22,934 ) Total Consolidated Revenue $ 437,279 $ 462,128 $ 888,019 $ 918,444 (1) The elimination of inter-segment revenues was not significant to the revenues of any one segment. Adjusted EBITDA: MHGE Higher Education $ 234,603 $ 222,341 $ 245,953 218,892 MHGE Professional 7,267 9,262 16,108 22,298 MHGE International 24,206 32,309 20,270 28,557 MHGE Other 2,746 1,894 2,953 (319 ) Total Adjusted EBITDA $ 268,822 $ 265,806 $ 285,284 $ 269,428 Reconciliation of Adjusted EBITDA to the consolidated statements of operations is as follows: Three Months Ended Nine months ended September 30, 2015 2014 2015 2014 Total Adjusted EBITDA $ 268,822 $ 265,806 $ 285,284 $ 269,428 Interest (expense) income, net (31,936 ) (35,466 ) (98,233 ) (115,612 ) Benefit (provision) for taxes on income (38,610 ) (13,186 ) (12,740 ) 5,753 Depreciation, amortization and pre-publication investment amortization (52,532 ) (49,634 ) (130,848 ) (136,009 ) Change in deferred revenue (79,361 ) (65,535 ) (41,116 ) (22,934 ) Restructuring and cost savings implementation charges (2,724 ) (3,136 ) (12,346 ) (17,426 ) Sponsor fees (875 ) (875 ) (2,625 ) (2,625 ) Purchase accounting — — — 2,600 Transaction costs — (162 ) — (3,583 ) Acquisition costs — (205 ) — (2,855 ) Physical separation costs — (7,833 ) — (18,941 ) Other (2,164 ) (5,641 ) (2,402 ) (6,969 ) Pre-publication investment cash costs 12,729 13,060 30,921 35,335 Net (loss) income 73,349 97,193 15,895 (13,838 ) Less: Net (income) loss attributable to noncontrolling interests — — — 299 Net (loss) income attributable to McGraw-Hill Global Education Intermediate Holdings, LLC $ 73,349 $ 97,193 $ 15,895 $ (13,539 ) The following is a schedule of revenue and long-lived assets by geographic region: Revenue (1) Three Months Ended Nine months ended September 30, 2015 2014 2015 2014 United States $ 343,327 $ 356,986 $ 668,626 $ 679,076 International 93,952 105,142 219,393 239,368 Total $ 437,279 $ 462,128 $ 888,019 $ 918,444 Long -lived Assets (2) As of September 30, 2015 December 31, 2014 United States $ 176,588 $ 191,745 International 34,443 19,667 Total $ 211,031 $ 211,412 (1) Revenues are attributed to a geographic region based on the location of customer. (2) Reflects total assets less current assets, goodwill, intangible assets, investments, deferred financing costs and non-current deferred tax assets.

Taxes on Income

Taxes on Income	9 Months Ended
	Sep. 30, 2015
Income Tax Disclosure [Abstract]
Taxes on Income	Taxes on Income For the three months ended September 30, 2015 and September 30, 2014 , the effective tax rate was 34.5% and 11.9% , respectively. For the nine months ended September 30, 2015 and September 30, 2014 , the effective tax rate was 44.5% and 29.4% , respectively. The difference between the rates was primarily due to changes in jurisdictional mix of forecasted income and losses. At the end of each interim period, we estimate the annual effective tax rate and apply that rate to our ordinary quarterly earnings. The tax expense or benefit related to significant, unusual or extraordinary items that will be separately reported or reported net of their related tax effect, and are individually computed, are recognized in the interim period in which those items occur. In addition, the effect of changes in enacted tax laws or rates or tax status is recognized in the interim period in which the change occurs. As of September 30, 2015 and December 31, 2014 , the total amount of federal, state and local, and foreign unrecognized tax benefits was $422 and $1,164 , respectively, exclusive of interest and penalties, substantially all of which, if recognized, would impact the effective tax rate. We recognize accrued interest and penalties related to unrecognized tax benefits in interest expense and operating expense, respectively. In addition to the unrecognized tax benefits, as of September 30, 2015 and December 31, 2014 , we had $780 and $1,158 , respectively, of accrued interest and penalties associated with uncertain tax positions. Under the terms of the Founding Acquisition, MHC is contractually liable for income tax assessments for Predecessor periods through March 22, 2013. An indemnification receivable from MHC of $1,202 and $1,825 has been recorded in non-current assets as of September 30, 2015 and December 31, 2014 , respectively, for the unrecognized tax benefit, interest, and penalties related to controlled foreign corporations as taxpayers of record.

Employee Benefits

Employee Benefits	9 Months Ended
	Sep. 30, 2015
Compensation and Retirement Disclosure [Abstract]
Employee Benefits	Employee Benefits Defined Contribution Plans A majority of employees of the Company are participants in voluntary 401(k) plans sponsored by the Company under which the Company may match employee contributions up to certain levels of compensation.

Stock-Based Compensation

Stock-Based Compensation	9 Months Ended
	Sep. 30, 2015
Disclosure of Compensation Related Costs, Share-based Payments [Abstract]
Stock-Based Compensation	Stock-Based Compensation In the quarter ended June 30, 2013, Georgia Holdings, Inc., adopted the Management Equity Plan whereby Georgia Holdings, Inc., the parent of our Parent, can issue stock options, restricted stock, restricted stock units, and other equity based awards. In the three months ended September 30, 2015 and 2014, the Company issued nil and 6,250 Georgia Holdings, Inc. stock options to employees of the Company, respectively. Stock options may not be granted at a price less than the fair market value of common stock on the grant date. The options terminate on the earliest of the tenth year from the date of the grant or other committee action, as defined in the plan documents. As of September 30, 2015 , the weighted average grant date fair value of outstanding options was $68.51 . We use a Black-Scholes closed form option pricing model to estimate the fair value of options granted. The options vest over five years with 50% vesting on cumulative financial performance measures in the Plan and the remaining 50% vest evenly over five years, in each case subject to continued service. In the three months ended September 30, 2015 and 2014, the Company issued 234 and 22,007 performance-based restricted stock units to employees of the Company that vest on December 31, 2017 and December 31, 2016, respectively, subject to performance achievement. Stock-based compensation for the periods presented was as follows: Three Months Ended Nine months ended September 30, 2015 2014 2015 2014 Stock option expense $ 2,379 $ 1,024 $ 4,766 $ 3,428 Restricted stock and unit awards expense 841 591 2,591 1,736 Total stock-based compensation expense $ 3,220 $ 1,615 $ 7,357 $ 5,164 As of September 30, 2015 and September 30, 2014 there was approximately $19,801 and $23,685 , respectively, of total unrecognized compensation costs related to non-vested stock-based employee compensation arrangements granted under the Management Equity Plan. The Company expects to recognize those costs over a weighted average period of 2.5 years.

Restructuring

Restructuring	9 Months Ended
	Sep. 30, 2015
Restructuring and Related Activities [Abstract]
Restructuring	Restructuring In order to contain costs and mitigate the impact of current and expected future economic conditions, as well as a continued focus on process improvements, we have initiated various restructuring plans over the last several years. The charges for each restructuring plan are classified as operating and administration expenses within the consolidated statements of operations. In certain circumstances, reserves are no longer needed because of efficiencies in carrying out the plans, or because employees previously identified for separation resigned from the Company and did not receive severance or were reassigned due to circumstances not foreseen when the original plans were initiated. In these cases, we reverse reserves through the consolidated statements of operations when it is determined they are no longer needed. The following table summarizes restructuring information by reporting segment: MHGE Higher Education MHGE Professional MHGE International MHGE Other Total Balance at December 31, 2014 $ 11,218 $ 1,490 $ 5,864 $ — $ 18,572 Charges: Employee severance and other personal benefits 1,220 — 448 — 1,668 Lease termination costs — — 1,515 — 1,515 Payments: Employee severance and other personal benefits (10,230 ) (1,442 ) (4,880 ) — (16,552 ) Lease termination costs — — (1,515 ) — (1,515 ) Balance at September 30, 2015 $ 2,208 $ 48 $ 1,432 $ — $ 3,688 The Company expects to utilize the remaining reserves of $3,688 in 2015.

Guarantor Financial Information

Guarantor Financial Information	9 Months Ended
	Sep. 30, 2015
Organization, Consolidation and Presentation of Financial Statements [Abstract]
Guarantor Financial Information	Guarantor Financial Information On March 22, 2013, in connection with the Founding Acquisition, MHGE Holdings issued $800,000 aggregate principal amount of Notes as described in Note 2. The Notes and the Senior Facilities are jointly and severally, fully and unconditionally guaranteed on a senior unsecured basis subject to certain exceptions, by the Company and each of the Company’s direct and indirect wholly owned domestic subsidiaries (the “Guarantors”). Each of the Guarantors is 100 percent owned, directly or indirectly, by the Company. All other subsidiaries of the Company, either direct or indirect, do not guarantee the Notes and Senior Facilities (“Non-Guarantors”). The following consolidated financial statements are presented for the information of the holders of the Notes and present the consolidated balance sheets as of September 30, 2015 and December 31, 2014 , the consolidated statements of operations for the three and nine months ended September 30, 2015 and September 30, 2014 and the condensed consolidated statements of cash flows for the nine months ended September 30, 2015 and September 30, 2014 of the Company. The consolidated financial statements present MHGE Intermediate, which is a Guarantor of the Notes, the Guarantor subsidiaries of MHGE Intermediate, the Non-Guarantor subsidiaries of MHGE Intermediate and the elimination entries necessary to combine and consolidate MHGE Intermediate with the Guarantor and Non-Guarantor subsidiaries. Investments in subsidiaries are accounted for using the equity method for purposes of the consolidated presentation. The principal elimination entries relate to investments in subsidiaries and intercompany balances and transactions. Additionally, substantially all of the assets of the Guarantor subsidiaries are pledged under the Notes and, consequently, will not be available to satisfy the claims of the Company’s general creditors. Three Months Ended September 30, 2015 MHGE Intermediate Guarantor Subsidiaries Non-Guarantor Subsidiaries Eliminations MHGE Intermediate (Consolidated) Revenue $ — $ 343,327 $ 93,952 $ — $ 437,279 Cost of goods sold — 75,621 39,052 — 114,673 Gross profit — 267,706 54,900 — 322,606 Operating expenses Operating & administration expenses 875 109,466 39,716 238 150,295 Depreciation — 6,876 60 — 6,936 Amortization of intangibles — 21,098 1,657 — 22,755 Total operating expenses 875 137,440 41,433 238 179,986 Operating (loss) income (875 ) 130,266 13,467 (238 ) 142,620 Interest expense (income), net 31,881 — 55 — 31,936 Equity in (income) loss of subsidiaries (144,715 ) — 144,715 — Other (income) — (1,275 ) — — (1,275 ) Income (Loss) from operations before taxes on income 111,959 131,541 13,412 (144,953 ) 111,959 Income tax (benefit) provision 38,610 69,465 3,825 (73,290 ) 38,610 Net (loss) income $ 73,349 $ 62,076 $ 9,587 $ (71,663 ) $ 73,349 Comprehensive (loss) income $ 73,349 $ 62,076 $ 2,020 $ (71,663 ) $ 65,782 Three Months Ended September 30, 2014 MHGE Intermediate Guarantor Subsidiaries Non-Guarantor Subsidiaries Eliminations MHGE Intermediate (Consolidated) Revenue $ — $ 353,288 $ 108,840 $ — $ 462,128 Cost of goods sold — 82,510 44,109 — 126,619 Gross profit — 270,778 64,731 — 335,509 Operating expenses Operating & administration expenses 875 118,061 45,233 2,300 166,469 Depreciation — 1,380 667 — 2,047 Amortization of intangibles — 20,242 2,019 — 22,261 Transaction costs 162 — — — 162 Total operating expenses 1,037 139,683 47,919 2,300 190,939 Operating (loss) income (1,037 ) 131,095 16,812 (2,300 ) 144,570 Interest expense (income), net 35,551 — (85 ) — 35,466 Equity in (income) loss of subsidiaries (146,967 ) — — 146,967 — Other (income) — (1,275 ) — — (1,275 ) (Loss) income from operations before taxes on income 110,379 132,370 16,897 (149,267 ) 110,379 Income tax (benefit) provision 13,186 15,813 5,475 (21,288 ) 13,186 Net (loss) income 97,193 116,557 11,422 (127,979 ) 97,193 Less: Net (income) loss attributable to noncontrolling interests — — — — — Net (loss) income attributable to McGraw-Hill Global Education Intermediate Holdings, LLC $ 97,193 $ 116,557 $ 11,422 $ (127,979 ) $ 97,193 Comprehensive (loss) income attributable to McGraw-Hill Global Education Intermediate Holdings, LLC $ 97,193 $ 116,557 $ (158 ) $ (127,979 ) $ 85,613 Nine months ended September 30, 2015 MHGE Intermediate Guarantor Subsidiaries Non-Guarantor Subsidiaries Eliminations MHGE Intermediate (Consolidated) Revenue $ — $ 675,319 $ 212,700 $ — $ 888,019 Cost of goods sold — 152,465 92,095 — 244,560 Gross profit — 522,854 120,605 — 643,459 Operating expenses Operating & administration expenses 2,625 311,862 121,880 (52 ) 436,315 Depreciation — 19,365 112 — 19,477 Amortization of intangibles — 64,398 5,005 — 69,403 Total operating expenses 2,625 395,625 126,997 (52 ) 525,195 Operating (loss) income (2,625 ) 127,229 (6,392 ) 52 118,264 Interest expense (income), net 97,696 — 537 — 98,233 Equity in (income) loss of subsidiaries (128,957 ) — — 128,957 — Other (income) — (8,604 ) — — (8,604 ) Income (Loss) from operations before taxes on income 28,636 135,833 (6,929 ) (128,905 ) 28,635 Income tax (benefit) provision 12,741 68,847 (1,778 ) (67,070 ) 12,740 Net (loss) income $ 15,895 $ 66,986 $ (5,151 ) $ (61,835 ) $ 15,895 Comprehensive (loss) income $ 15,895 $ 66,986 $ (17,756 ) $ (61,835 ) $ 3,290 Nine months ended September 30, 2014 MHGE Intermediate Guarantor Subsidiaries Non-Guarantor Subsidiaries Eliminations MHGE Intermediate (Consolidated) Revenue $ — $ 680,746 $ 237,698 $ — $ 918,444 Cost of goods sold — 153,892 97,731 — 251,623 Gross profit — 526,854 139,967 — 666,821 Operating expenses Operating & administration expenses 2,625 350,981 135,485 (685 ) 488,406 Depreciation — 8,308 2,650 — 10,958 Amortization of intangibles — 82,631 (3,624 ) — 79,007 Transaction costs 3,583 — — — 3,583 Total operating expenses 6,208 441,920 134,511 (685 ) 581,954 Operating (loss) income (6,208 ) 84,934 5,456 685 84,867 Interest expense (income), net 115,876 — (264 ) — 115,612 Equity in (income) loss of subsidiaries (102,792 ) — — 102,792 — Other (income) — (11,154 ) — — (11,154 ) (Loss) income from operations before taxes on income (19,292 ) 96,088 5,720 (102,107 ) (19,591 ) Income tax (benefit) provision (5,753 ) 14,839 1,948 (16,787 ) (5,753 ) Net (loss) income (13,539 ) 81,249 3,772 (85,320 ) (13,838 ) Less: Net (income) loss attributable to noncontrolling interests — — 299 — 299 Net (loss) income attributable to McGraw-Hill Global Education Intermediate Holdings, LLC $ (13,539 ) $ 81,249 $ 4,071 $ (85,320 ) $ (13,539 ) Comprehensive (loss) income attributable to McGraw-Hill Global Education Intermediate Holdings, LLC $ (13,539 ) $ 81,249 $ 1,765 $ (85,320 ) $ (15,845 ) September 30, 2015 MHGE Intermediate Guarantor Subsidiaries Non-Guarantor Subsidiaries Eliminations MHGE Intermediate (Consolidated) ASSETS Current assets: Cash and equivalents $ — $ 495,767 $ 58,575 $ (359,392 ) 194,950 Accounts receivable — 165,573 88,524 — 254,097 Related party receivable — 261,551 — (254,321 ) 7,230 Inventories, net — 48,403 25,733 52 74,188 Deferred income taxes — 22,745 7,913 — 30,658 Prepaid and other current assets 62,715 22,113 15,803 (60,091 ) 40,540 Total current assets 62,715 1,016,152 196,548 (673,752 ) 601,663 Pre-publication costs, net — 55,478 12,921 — 68,399 Property, plant and equipment, net — 90,214 1,990 — 92,204 Goodwill — 425,307 48,944 — 474,251 Other intangible assets, net — 778,739 55,935 — 834,674 Investments 1,970,996 102 6,484 (1,970,996 ) 6,586 Deferred income taxes non-current — 33,639 1,531 — 35,170 Other non-current assets 57,368 49,153 1,637 — 108,158 Total assets $ 2,091,079 $ 2,448,784 $ 325,990 $ (2,644,748 ) $ 2,221,105 LIABILITIES AND EQUITY Current liabilities Accounts payable $ 362,017 $ 102,519 $ 10,945 $ (359,392 ) $ 116,089 Accrued royalties — 32,012 8,322 — 40,334 Accrued compensation and contributions to retirement plans — 30,003 11,366 — 41,369 Deferred revenue — 175,463 11,258 — 186,721 Current portion of long-term debt 6,790 — — — 6,790 Related party — 619 253,700 (254,319 ) — Other current liabilities 50,302 92,571 21,085 (60,084 ) 103,874 Total current liabilities 419,109 433,187 316,676 (673,795 ) 495,177 Long-term debt 1,445,738 — — — 1,445,738 Deferred income taxes — — 7,993 — 7,993 Other non-current liabilities — 36,496 2,970 — 39,466 Total liabilities 1,864,847 469,683 327,639 (673,795 ) 1,988,374 Commitments and contingencies Equity Member's equity 292,474 1,811,369 46,905 (1,812,285 ) 338,463 Accumulated deficit (66,242 ) 167,732 (9,064 ) (158,668 ) (66,242 ) Accumulated other comprehensive loss — — (39,490 ) — (39,490 ) Total equity 226,232 1,979,101 (1,649 ) (1,970,953 ) 232,731 Total liabilities and equity $ 2,091,079 $ 2,448,784 $ 325,990 $ (2,644,748 ) $ 2,221,105 December 31, 2014 MHGE Intermediate Guarantor Subsidiaries Non-Guarantor Subsidiaries Eliminations MHGE Intermediate (Consolidated) ASSETS Current assets: Cash and equivalents $ — $ 466,617 $ 49,737 $ (284,256 ) $ 232,098 Accounts receivable — 122,047 82,025 — 204,072 Related party — 253,071 — (253,071 ) — Inventories, net — 50,330 27,164 (502 ) 76,992 Deferred income taxes — 22,745 8,793 — 31,538 Prepaid and other current assets 74,577 11,925 17,036 (72,828 ) 30,710 Total current assets 74,577 926,735 184,755 (610,657 ) 575,410 Pre-publication costs, net — 63,130 17,850 — 80,980 Property, plant and equipment, net — 91,926 — — 91,926 Goodwill — 423,629 53,695 — 477,324 Other intangible assets, net — 842,907 63,758 — 906,665 Investments 1,842,551 104 9,115 (1,842,551 ) 9,219 Deferred income taxes non-current — 42,242 1,198 — 43,440 Other non-current assets 63,004 36,689 1,817 — 101,510 Total assets $ 1,980,132 $ 2,427,362 $ 332,188 $ (2,453,208 ) $ 2,286,474 LIABILITIES AND EQUITY Current liabilities Accounts payable $ 284,256 $ 115,594 $ 14,871 $ (284,256 ) $ 130,465 Accrued royalties — 89,796 12,031 — 101,827 Accrued compensation and contributions to retirement plans — 50,615 15,628 — 66,243 Deferred revenue — 117,211 7,340 — 124,551 Current portion of long-term debt 6,880 — — — 6,880 Related party — 889 253,071 (253,071 ) 889 Other current liabilities 31,186 98,036 32,766 (72,828 ) 89,160 Total current liabilities 322,322 472,141 335,707 (610,155 ) 520,015 Long-term debt 1,447,473 — — — 1,447,473 Deferred income taxes — — 8,288 — 8,288 Other non-current liabilities — 45,244 3,595 — 48,839 Total liabilities 1,769,795 517,385 347,590 (610,155 ) 2,024,615 Commitments and contingencies Equity Member's equity 292,474 1,809,231 15,396 (1,746,220 ) 370,881 Accumulated deficit (82,137 ) 100,746 (3,913 ) (96,833 ) (82,137 ) Accumulated other comprehensive loss — — (26,885 ) — (26,885 ) Total equity 210,337 1,909,977 (15,402 ) (1,843,053 ) 261,859 Total liabilities and equity $ 1,980,132 $ 2,427,362 $ 332,188 $ (2,453,208 ) $ 2,286,474 Nine months ended September 30, 2015 MHGE Intermediate Guarantor Subsidiaries Non-Guarantor Subsidiaries Eliminations MHGE Intermediate (Consolidated) Operating activities Cash provided by operating activities $ 5,440 $ 114,154 $ 23,359 $ (75,136 ) $ 67,817 Investing activities Investment in pre-publication costs — (27,103 ) (3,818 ) — (30,921 ) Capital expenditures — (30,360 ) (609 ) — (30,969 ) Acquisitions and investments — — (6,879 ) — (6,879 ) Proceeds from sale of investment — 12,500 — — 12,500 Proceeds from dispositions — 81 — — 81 Cash used for investing activities — (44,882 ) (11,306 ) — (56,188 ) Financing activities Payment of term loan (5,440 ) — — — (5,440 ) Dividend payment to MHGE Parent — (39,822 ) — — (39,822 ) Dividends on restricted stock unit — (300 ) — — (300 ) Cash provided by (used for) financing activities (5,440 ) (40,122 ) — — (45,562 ) Effect of exchange rate changes on cash — — (3,215 ) — (3,215 ) Net change in cash and cash equivalents — 29,150 8,838 (75,136 ) (37,148 ) Cash and cash equivalents at the beginning of the period — 466,617 49,737 (284,256 ) 232,098 Cash and cash equivalents, ending balance $ — $ 495,767 $ 58,575 $ (359,392 ) $ 194,950 Nine months ended September 30, 2014 MHGE Intermediate Guarantor Subsidiaries Non-Guarantor Subsidiaries Eliminations MHGE Intermediate (Consolidated) Operating activities Cash provided by operating activities $ 40,160 $ 114,915 $ 41,303 $ (113,766 ) $ 82,612 Investing activities Investment in pre-publication costs — (28,794 ) (6,541 ) — (35,335 ) Capital expenditures — (13,365 ) (1,952 ) — (15,317 ) Acquisitions and investments — — (56,453 ) — (56,453 ) Proceeds from sale of investment — 54 3,250 — 3,304 Proceeds from dispositions — 17 8,865 — 8,882 Cash used for investing activities — (42,088 ) (52,831 ) — (94,919 ) Financing activities Payment of term loan (40,160 ) — — — (40,160 ) Payment of deferred purchase price — (53,500 ) — — (53,500 ) Dividends paid to noncontrolling interests — — (169 ) — (169 ) Cash provided by (used for) financing activities (40,160 ) (53,500 ) (169 ) — (93,829 ) Effect of exchange rate changes on cash — — (220 ) — (220 ) Net change in cash and cash equivalents — 19,327 (11,917 ) (113,766 ) (106,356 ) Cash and cash equivalents at the beginning of the period — 301,985 67,429 (116,024 ) 253,390 Cash and cash equivalents, ending balance $ — $ 321,312 $ 55,512 $ (229,790 ) $ 147,034

Transactions with Sponsors

Transactions with Sponsors	9 Months Ended
	Sep. 30, 2015
Transaction with Sponsors [Abstract]
Transactions with Sponsors	Transactions with Sponsors In connection with the Founding Transactions, MHGE Holdings, our wholly owned subsidiary, entered into a management fee agreement with Apollo Management VII, L. P. (the “Advisor”), an affiliate of our Sponsor pursuant to which the Advisor will provide management consulting services to Parent and its direct and indirect divisions and subsidiaries, including the Company and MHGE Holdings. In exchange for these services, the Advisor will receive an aggregate annual management fee of $3,500 and reimbursement of out-of-pocket expenses incurred in connection with the provision of such services. We recorded an expense of $875 for management fees for both of the three months ended September 30, 2015 and 2014, respectively. We recorded an expense of $2,625 for management fees for both of the nine months ended September 30, 2015 and 2014, respectively. In connection with the Founding Transactions, Apollo Global Securities, LLC, an affiliate of our Sponsor (the “Affiliate”), entered into a transaction fee agreement with Parent relating to the provision of certain structuring, financial, investment banking and other similar advisory services in connection with the Founding Transactions and future transactions. During the period ended March 23, 2013 to December 31, 2013, we paid the Affiliate a one-time transaction fee of $25,000 in exchange for services rendered in connection with the structuring of the Founding Transactions, arranging financing and performing other services with the Founding Transactions. Also, subject to the terms and conditions of the agreement, an additional transaction fee equal to 1% of the aggregate enterprise value will be payable to Affiliate for investment banking, financing and other financial advisory services related to any merger, acquisition, disposition, financing or any similar transaction in the future.

Commitments and Contingencies

Commitments and Contingencies	9 Months Ended
	Sep. 30, 2015
Commitments and Contingencies Disclosure [Abstract]
Commitments and Contingencies	Commitments and Contingencies Legal Matters In the normal course of business both in the United States and abroad, the Company is a defendant in various lawsuits and legal proceedings which may result in adverse judgments, damages, fines or penalties and is subject to inquiries and investigations by various governmental and regulatory agencies concerning compliance with applicable laws and regulations. In view of the inherent difficulty of predicting the outcome of legal matters, we cannot state with confidence what the timing, eventual outcome, or eventual judgment, damages, fines, penalties or other impact of these pending matters will be. We believe, based on our current knowledge, that the outcome of the legal actions, proceedings and investigations currently pending should not have a material adverse effect on the Company’s financial condition.

Related Party Transactions

Related Party Transactions	9 Months Ended
	Sep. 30, 2015
Related Party Transactions [Abstract]
Related Party Transactions	Related Party Transactions Other Transactions and Arrangements On July 17, 2014 the Company’s parent company, MHGE Parent, LLC (“MHGE Parent” and, together with its subsidiaries, “McGraw-Hill Global Education”) and MHGE Parent Finance, Inc. (“MHGE Parent Finance” and, together with MHGE Parent, the “Issuers”), issued $400,000 aggregate principal amount of Senior PIK Toggle Notes due 2019 (the “PIK Toggle Notes”) in a private placement. The PIK Toggle Notes were issued at a discount of 1% . The proceeds from this private offering were used to make a return of capital to the equity holders of MHGE Parent and pay certain related transaction costs and expenses. The PIK Toggle Notes bear interest at 8.5% for interest paid in cash and 9.25% for in-kind interest, “PIK”, by increasing the principal amount of the PIK Toggle Notes by issuing new notes. Interest is payable semi-annually on February 1 and August 1 of each year, commencing February 1, 2015. The first semi-annual interest payment due must be paid in cash and was paid on February 2, 2015 in the amount of $18,322 . In addition, the Company paid a dividend of $21,500 on April 3, 2015 to MHGE Parent in advance of MHGE Parent's interest payable due on August 1, 2015. The determination as to whether interest is paid in cash or PIK is determined based on restrictions in the credit agreement governing the Senior Facilities and the indenture governing the Senior Secured Notes for payments to MHGE Parent. PIK may be paid either 0% , 50% or 100% of the amount of interest due, dependent on the amount of any restriction. The PIK Toggle Notes are junior to the debt of all of the Company's subsidiaries, are not guaranteed by any of the parent company’s subsidiaries and are a contractual obligation of MHGE Parent. On April 6, 2015, additional aggregate principal amount of $100,000 was issued under the same indenture, and part of the same series, as the outstanding $400,000 of the Notes previously issued by the Issuers. The proceeds from this private offering were used to make a return of capital to the equity holders of MHGE Parent and pay certain related transaction costs and expenses. On May 4, 2015, the Company made a voluntary principal payment of $325 and refinanced the term loan facility in the aggregate principal of $679,000 . The revised terms reduce the applicable LIBOR margin from 4.75% to 3.75% . The LIBOR floor remains at 1% . All other terms remain unchanged. Quarterly principal payments were reduced from $1,720 to $1,698 , maintaining the amortization rate at ¼ of 1% of the refinanced principal amount. MHC Service Charges and Allocations & Transition Services Effective January 1, 2013, in connection with the Transactions, MHGE Holdings, our wholly owned subsidiary, entered into transition services agreement with MHC, pursuant to which MHC provided MHGE Holdings and us with certain corporate services, including corporate accounting, treasury, global procurement and manufacturing, facilities, human resources and information technology during 2013. The transition services agreement with MHC ended during 2014. The expenses included in the consolidated financial statements were $693 and $2,675 for the three and nine months ended September 30, 2014 . Payment of Acquisition Costs on Behalf of Parent At the closing of the Founding Transactions MHGE Holdings paid $28,672 for costs related to the Founding Acquisition on behalf of Parent. Reseller Agreement with MHSE As disclosed in Note 4, the ALEKS Corporation entered into a reseller agreement with MHSE, which is a separate wholly owned subsidiary of our Parent, granting MHSE exclusive rights to sell ALEKS products in the K-12 market. MHSE paid $25,500 to ALEKS Corporation for the exclusivity provision, which is being recognized over five years and renewable for no additional fee after five years , and paid a royalty advance of $12,500 . The royalty rate is 15% on net sales. Quest Agreement Leader’s Quest Ltd (“Quest”) is a UK-based non-profit enterprise at which Lindsay Levin is the founder and managing partner. Ms. Levin is the spouse of David Levin, who serves as our President and Chief Executive Officer. In 2014, the Company entered into an agreement with Quest pursuant to which Quest provided leadership workshops and other leadership training for twelve members of the Company’s executive leadership team. The Company paid Quest total fees of $133 in connection with the Quest agreement. In 2015, the Company entered into an agreement which Quest will provide additional leadership workshops and other leadership training for additional members of the Company’s leadership team. The Company will pay Quest total fees of $293 during 2015 in connection with the agreement. As Quest is a non-profit enterprise, Ms. Levin does not stand to benefit financially from the transaction with the Company.

Supplemental Parent Company Equ

Supplemental Parent Company Equity Information	9 Months Ended
	Sep. 30, 2015
Equity [Abstract]
Supplemental Parent Company Equity Information	Supplemental Parent Company Equity Information Parent Company equity is summarized as follows: Total Parent Company Equity Noncontrolling Interest Total Equity Balance at December 31, 2013 $ 199,778 $ 23,490 $ 223,268 Comprehensive loss, net of tax (12,851 ) (686 ) (13,537 ) Capital contribution 42,500 — 42,500 Georgia Holdings shares for acquisition earn out 8,500 — 8,500 Acquisition of non-controlling interest (4,815 ) (22,635 ) (27,450 ) Stock-based compensation 7,288 — 7,288 Dividend on restricted stock units (1,189 ) — (1,189 ) Non-cash capital contribution 22,648 — 22,648 Dividends paid to non-controlling interests — (169 ) (169 ) Balance at December 31, 2014 $ 261,859 $ — $ 261,859 Comprehensive loss, net of tax 3,290 — 3,290 Stock-based compensation 7,357 — 7,357 Non-cash capital distribution (39,063 ) — (39,063 ) Dividend on restricted stock units (712 ) — (712 ) Balance at September 30, 2015 $ 232,731 $ — $ 232,731

Basis of Presentation and Acc26

Basis of Presentation and Accounting Policies (Policies)	9 Months Ended
	Sep. 30, 2015
Organization, Consolidation and Presentation of Financial Statements [Abstract]
Principles of Consolidation	Principles of Consolidation The accompanying consolidated financial statements have been prepared in accordance with U.S. GAAP and all significant intercompany transactions and balances have been eliminated. In the opinion of management, the accompanying unaudited consolidated financial statements include all adjustments (consisting of normal recurring accruals) considered necessary for a fair presentation. We record non-controlling interest in our consolidated financial statements to recognize the minority ownership interest in certain subsidiaries. Non-controlling interest in the earnings and losses of these subsidiaries represent the share of net income or loss allocated to our combined entities.
Seasonality and Comparability	Seasonality and Comparability Our revenues, operating profit and operating cash flows are affected by the inherent seasonality of the academic calendar, which varies by country. Changes in our customers’ ordering patterns may impact the comparison of our results in a quarter with the same quarter of the previous year, or in a fiscal year with the prior fiscal year, where our customers may shift the timing of material orders for any number of reasons, including, but not limited to, changes in academic semester start dates or changes to their inventory management practices.
Use of Estimates	Use of Estimates The preparation of financial statements in conformity with U.S. GAAP requires management to make estimates and assumptions that affect the amounts reported in the financial statements and accompanying notes. Actual results could differ from those estimates. On an ongoing basis, we evaluate our estimates and assumptions, including those related to revenue recognition, allowance for doubtful accounts and sales returns, inventories, pre-publication costs, accounting for the impairment of long-lived assets (including other intangible assets), goodwill and indefinite-lived intangible assets, stock-based compensation, restructuring, income taxes and contingencies. Management further considered the accounting policy with regard to the purchase price allocation to assets and liabilities to be critical. This accounting policy, as more fully described in Note 3, encompasses significant judgments and estimates used in the preparation of these financial statements.
Cash and Cash Equivalents	Cash and Cash Equivalents Cash and cash equivalents include bank deposits and highly liquid investments with original maturities of three months or less that consist primarily of money market funds with unrestricted daily liquidity and fixed term time deposits. The balance also includes cash that is held by the Company outside the United States to fund international operations or to be reinvested outside of the United States.
Accounts Receivable and Allowance for Doubtful Accounts and Sales Returns	Accounts Receivable Credit is extended to customers based upon an evaluation of the customer’s financial condition. Accounts receivable are recorded at net realizable value. Allowance for Doubtful Accounts and Sales Returns The allowance for doubtful accounts and sales returns reserves methodology is based on historical analysis, a review of outstanding balances and current conditions. In determining these reserves, we consider, among other factors, the financial condition and risk profile of our customers, areas of specific or concentrated risk as well as applicable industry trends or market indicators. The allowance for sales returns is a significant estimate, which is based on historical rates of return and current market conditions. The provision for sales returns is reflected as a reduction to “Revenues” in our consolidated statements of operations. Sales returns are charged against the reserve as products are returned to inventory. Accounts receivable losses for bad debt are charged against the allowance for doubtful accounts when the receivable is determined to be uncollectible. The change in the allowance for doubtful accounts is reflected as part of operating and administrative expenses in our consolidated statement of operations.
Inventories	Inventories Inventories, consisting principally of books, are stated at the lower of cost (first-in, first-out) or market value. The majority of our inventories relate to finished goods. A significant estimate, the reserve for inventory obsolescence, is reflected in operating and administration expenses. In determining this reserve, we consider management’s current assessment of the marketplace, industry trends and projected product demand as compared to the number of units currently on hand.
Pre-publication Costs	Pre-publication Costs Pre-publication costs include both the cost of developing educational content and the development of assessment solution products. Costs incurred prior to the publication date of a title or release date of a product represent activities associated with product development. These may be performed internally or outsourced to subject matter specialists and include, but are not limited to, editorial review and fact verification, graphic art design and layout and the process of conversion from print to digital media or within various formats of digital media. These costs are capitalized when the costs can be directly attributable to a project or title and the title is expected to generate probable future economic benefits. Capitalized costs are amortized upon publication of the title over its estimated useful life of up to six years , with a higher proportion of the amortization typically taken in the earlier years. Amortization expenses for pre-publication costs are charged as a component of operating & administration expenses. In evaluating recoverability, we consider management’s current assessment of the marketplace, industry trends and the projected success of programs.
Property, Plant and Equipment	Property, Plant and Equipment Property, plant and equipment are stated at cost less accumulated depreciation as of September 30, 2015 and December 31, 2014 . Depreciation and amortization are recorded on a straight-line basis, over the assets’ estimated useful lives. Buildings have an estimated useful life, for purposes of depreciation, of twenty-eight years. Furniture, fixtures and equipment are depreciated over periods not exceeding seven years . Leasehold improvements are amortized over the life of the lease or the life of the assets, whichever is shorter. The Company evaluates the depreciation periods of property, plant and equipment to determine whether events or circumstances warrant revised estimates of useful lives.
Royalty Advances	Royalty Advances Royalty advances are initially capitalized and subsequently expensed as related revenues are earned or when the Company determines future recovery is not probable. The Company has a long history of providing authors with royalty advances, and it tracks each advance earned with respect to the sale of the related publication. Historically, the longer the unearned portion of the advance remains outstanding, the less likely it is that the Company will recover the advance through the sale of the publication, as the related royalties earned are applied first against the remaining unearned portion of the advance. The Company applies this historical experience to its existing outstanding royalty advances to estimate the likelihood of recovery. Additionally, the Company’s editorial staff reviews its portfolio of royalty advances at a minimum quarterly to determine if individual royalty advances are not recoverable for discrete reasons, such as the death of an author prior to completion of a title or titles, a Company decision to not publish a title, poor market demand or other relevant factors that could impact recoverability. Based on this information, the portion of any advance that we believe is not recoverable is expensed.
Deferred Technology Costs	Deferred Technology Costs We capitalize certain software development and website implementation costs. Capitalized costs only include incremental, direct costs of materials and services incurred to develop the software after the preliminary project stage is completed, funding has been committed and it is probable that the project will be completed and used to perform the function intended. Incremental costs are expenditures that are out-of-pocket to us and are not part of an allocation or existing expense base. Software development and website implementation costs are expensed as incurred during the preliminary project stage. Capitalized costs are amortized from the year the software is ready for its intended use over its estimated useful life, three to seven years , using the straight-line method. Periodically, we evaluate the amortization methods, remaining lives and recoverability of such costs. Capitalized software development and website implementation costs are included in other non-current assets in the consolidated balance sheets and are presented net of accumulated amortization.
Accounting for the Impairment of Long-Lived Assets (Including Other Intangible Assets)	Accounting for the Impairment of Long-Lived Assets (Including Other Intangible Assets) We evaluate long-lived assets for impairment whenever events or changes in circumstances indicate that the carrying amount of an asset may not be recoverable. Upon such an occurrence, recoverability of assets to be held and used is measured by comparing the carrying amount of an asset to current forecasts of undiscounted future net cash flows expected to be generated by the asset. If the carrying amount of the asset exceeds its estimated future cash flows, an impairment charge is recognized equal to the amount by which the carrying amount of the asset exceeds the fair value of the asset. Long-lived assets held for sale are written down to fair value, less cost to sell. Fair value is determined based on market evidence, discounted cash flows, appraised values or management’s estimates, depending upon the nature of the assets.
Goodwill and Indefinite-Lived Intangible Assets	Goodwill and Indefinite-Lived Intangible Assets Goodwill represents the excess of purchase price and related costs over the fair value of identifiable assets acquired and liabilities assumed in a business combination. Indefinite-lived intangible assets consist of the Company's acquired brands. Goodwill and indefinite-lived intangible assets are not amortized, but instead are tested for impairment annually during the fourth quarter each year, or more frequently if events or changes in circumstances indicate that the asset might be impaired. We have three reporting units, Higher Education, Professional and International with goodwill and indefinite-lived intangible assets that are evaluated for impairment. We initially perform a qualitative analysis evaluating whether there are events or circumstances that provide evidence that it is more likely than not that the fair value of any of our reporting units or indefinite-lived intangible assets are less than their carrying amount. If, based on our evaluation we do not believe that it is more likely than not that the fair value of any of our reporting units or indefinite-lived intangible assets are less than their carrying amount, no quantitative impairment test is performed. Conversely, if the results of our qualitative assessment determine that it is more likely than not that the fair value of any of our reporting units or indefinite-lived intangible assets are less than their respective carrying amounts we perform a two-step quantitative impairment test. During the first step, the estimated fair value of the reporting units are compared to their carrying value including goodwill and the estimated fair value of the intangible assets is compared to their carrying value. Fair values of the reporting units are estimated using the income approach, which incorporates the use of a discounted free cash flow analysis, and are corroborated using the market approach, which incorporates the use of revenue and earnings multiples based on market data. The discounted free cash flow analyses are based on the current operating budgets and estimated long-term growth projections for each reporting unit. Future cash flows are discounted based on a market comparable weighted average cost of capital rate for each reporting unit, adjusted for market and other risks where appropriate. Fair values of indefinite-lived intangible assets are estimated using avoided royalty discounted free cash flow analyses. Significant judgments inherent in these analyses include the selection of appropriate royalty and discount rates and estimating the amount and timing of expected future cash flows. The discount rates used in the discounted free cash flow analyses reflect the risks inherent in the expected future cash flows generated by the respective intangible assets. The royalty rates used in the discounted free cash flow analyses are based upon an estimate of the royalty rates that a market participant would pay to license the Company's trade names and trademarks. If the fair value of the reporting units or indefinite-lived intangible assets are less than their carrying value, a second step is performed which compares the implied fair value of the reporting unit’s goodwill or indefinite-lived intangible assets to the carrying value. The fair value of the goodwill or indefinite-lived intangible assets is determined based on the difference between the fair value of the reporting unit and the net fair value of the identifiable assets and liabilities of the reporting unit or carrying value of the indefinite-lived intangible asset. If the implied fair value of the goodwill or indefinite-lived intangible assets is less than the carrying value, the difference is recognized as an impairment charge. Significant judgments inherent in this analysis include estimating the amount and timing of future cash flows and the selection of appropriate discount rates, royalty rate and long-term growth rate assumptions. Changes in these estimates and assumptions could materially affect the determination of fair value for each reporting unit and indefinite-lived intangible asset and for some of the reporting units and indefinite-lived intangible assets could result in an impairment charge, which could be material to our financial position and results of operations.
Fair Value Measurements	Fair Value Measurements In accordance with authoritative guidance for fair value measurements, certain assets and liabilities are required to be recorded at fair value. Fair value is defined as the amount that would be received to sell an asset or transfer a liability in an orderly transaction between market participants. A fair value hierarchy has been established which requires us to maximize the use of observable inputs and minimize the use of unobservable inputs when measuring fair value. The three levels of inputs used to measure fair value are as follows: • Level 1 - Unadjusted quoted prices in active markets for identical assets or liabilities. • Level 2 - Observable inputs other than Level 1 prices, such as quoted prices for similar assets or liabilities; quoted prices in markets that are not active; or other inputs that are observable or can be corroborated by observable market data for substantially the full term of the asset or liabilities. • Level 3 - Unobservable inputs that are supported by little or no market activity and that are significant to the fair value of the assets or liabilities.
Foreign Currency Translation	Foreign Currency Translation We have operations in many foreign countries. For most international operations, the local currency is the functional currency. For international operations that are determined to be extensions of the U.S. operations or where a majority of revenue and/or expenses is USD denominated, the United States dollar is the functional currency. For local currency operations, assets and liabilities are translated into United States dollars using end-of-period exchange rates, and revenue and expenses are translated into United States dollars using weighted-average exchange rates. Foreign currency translation adjustments are accumulated in a separate component of equity.
Stock-Based Compensation	Stock-Based Compensation The Company issues Georgia Holdings, Inc. stock options and other stock-based compensation to eligible employees, directors and consultants and accounts for these transactions under the provisions of Accounting Standards Codification ("ASC") 718, Compensation - Stock Compensation . For equity awards, total compensation cost is based on the grant date fair value. For liability awards, total compensation cost is based on the fair value of the award on the date the award is exercised and delivered. For performance-based options issued, the value of the instrument is measured at the grant date as the fair value of the common stock and expensed over the vesting term when the performance targets are considered probable of being achieved. The Company recognizes stock-based compensation expense for all awards, on a straight-line basis, over the service period required to earn the award, which is typically the vesting period.
Revenue Recognition	Revenue Recognition Revenue is recognized as it is earned when goods are shipped to customers or services are rendered. We consider amounts to be earned once evidence of an arrangement has been obtained, services are performed, fees are fixed or determinable and collectability is reasonably assured. Arrangements with multiple deliverables Revenue relating to products that provide for more than one deliverable is recognized based upon the relative fair value to the customer of each deliverable as each deliverable is provided. Revenue relating to agreements that provide for more than one service is recognized based upon the relative fair value to the customer of each service component as each component is earned. If the fair value to the customer for each service is not objectively determinable, we make our best estimate of the services’ stand-alone selling price and recognize revenue as earned as the services are delivered. Because we determine the basis for allocating consideration to each deliverable primarily on prices experienced from completed sales, over time the portion of consideration allocated to each deliverable in a multiple deliverable arrangement may increase or decrease depending on the most recent selling price of a comparable product or service sold on a stand-alone basis. For example, as the demand for, and prevalence of, digital products increases, we may be required to increase the amount of consideration allocable to digital products included in multiple deliverable arrangements because the fair value of such products or services may increase relative to other products or services bundled in the arrangement. Conversely, in the event that demand for our print products decreases, thereby causing us to experience reduced prices on our print products, we may be required to allocate less consideration to our print products in our arrangements that include multiple deliverables. Subscription-based products Subscription income is recognized over the related subscription period that the subscription is available and is used by the customer. Subscription revenue received or receivable in advance of the delivery of services or publications is included in deferred revenue. Incremental costs that are directly related to the subscription revenue are deferred and amortized over the subscription period. Included among the underlying assumptions related to our estimates that impact the recognition of subscription income is the period that our subscriptions are accessed by our customers, the extent of our responsibility to provide access to our subscription-based products, and the extent of complementary support services customers demand to access our products. Service arrangements Revenue relating to arrangements that provide for more than one service is recognized based upon the relative fair value to the customer of each service component as each component is earned. Such arrangements may include digital products bundled with traditional print products, obligations to provide products and services in the future at no additional cost, and periodic training pertinent to products and services previously provided. If the fair value to the customer for each service is not objectively determinable, we make our best estimate of the services’ stand-alone selling price and recognize revenue as earned as the services are delivered. Losses on contracts are recognized in the period in which the loss first becomes foreseeable. Contract losses are measured as the amount that the estimated total costs to complete the contract exceed the estimated total revenues that will be generated by the contract.
Shipping and Handling Costs	Shipping and Handling Costs All amounts billed to customers in a sales transaction for shipping and handling are classified as revenue. Shipping and handling costs are also a component of cost of goods sold.
Income Taxes	Income Taxes The Company’s operations are subject to United States federal, state and local income taxes, and foreign income taxes. The United States federal income tax return is filed as a consolidated group under McGraw-Hill Education, Inc. (formerly known as Georgia Holdings, Inc.). Net operating losses and other tax attributes are characterized as realized or realizable by MHGE Holdings when the attributes are utilized by the consolidated federal group following the Company’s “Benefits-for-Loss” allocation method. We determine the provision for income taxes using the asset and liability approach. Under this approach, deferred income taxes represent the expected future tax consequences of temporary differences between the carrying amounts and tax bases of assets and liabilities. Valuation allowances are established when management determines that it is more-likely-than not that some portion or all of the deferred tax asset will not be realized. Management evaluates the weight of both positive and negative evidence in determining whether a deferred tax asset will be realized. Management will look to a history of losses, future reversal of existing taxable temporary differences, taxable income in carryback years, feasibility of tax planning strategies, and estimated future taxable income. The valuation allowance can also be affected by changes in tax laws and changes to statutory tax rates. We prepare and file tax returns based on management’s interpretation of tax laws and regulations. As with all businesses, our tax returns are subject to examination by various taxing authorities. Such examinations may result in future tax assessments based on differences in interpretation of the tax law and regulations. We adjust our estimated uncertain tax positions reserves based on audits by and settlements with various taxing authorities as well as changes in tax laws, regulations, and interpretations. We recognize interest and penalties on uncertain tax positions as part of interest expense and operating expenses, respectively.
Contingencies	Contingencies We accrue for loss contingencies when both (a) information available prior to issuance of the financial statements indicates that it is probable that a liability had been incurred at the date of the financial statements and (b) the amount of loss can reasonably be estimated. When we accrue for loss contingencies and the reasonable estimate of the loss is within a range, we record its best estimate within the range. We disclose an estimated possible loss or a range of loss when it is at least reasonably possible that a loss may have been incurred. Neither an accrual nor disclosure is required for losses that are deemed remote.
Recent Accounting Standards	Recent Accounting Standards In July 2015, the Financial Accounting Standards Board (“FASB”) issued Accounting Standard Update (“ASU”) No. 2015-11 - Inventory (Topic 330) Related to Simplifying the Measurement of Inventory , that applies to all inventory except that which is measured using last-in, first-out (LIFO) or the retail inventory method. Inventory measured using first-in, first-out (FIFO) or average cost is within the scope of the new guidance and should be measured at the lower of cost and net realizable value. Net realizable value is the estimated selling price in the ordinary course of business, less reasonably predictable cost of completion, disposal, and transportation. Subsequent measurement is unchanged for inventory measured using LIFO of the retail inventory method. The amendments are effective for public business entities for fiscal years beginning after December 15, 2016, including interim periods within those fiscal years. The new guidance should be applied prospectively, and earlier application is permitted as of the beginning of an interim or annual reporting period. The Company is evaluating the impact of the standard on its consolidated financial statements. In June 2015, the FASB issued ASU No. 2015-10 - Technical Corrections and Improvements . The amendments in this ASU cover a wide range of topics in the Codification. The reason for each amendment is provided before each amendment for clarity and ease of understanding. The amendments generally related to: (1) Amendments related to differences between original guidance and the codification, (2) Guidance clarification and reference corrections, (3) Simplification and (4) Minor improvements. These amendments improve the guidance and are not expected to have a significant effect on current accounting practice or create a significant administrative cost to most entities. Transition guidance varies based on the amendments in this ASU. The amendments in this ASU that require transition guidance are effective for all entities for fiscal years, and interim periods within those fiscal years, beginning after December 15, 2015. Early adoption is permitted, including adoption in an interim period. All other amendments will be effective upon the issuance of this ASU. The adoption of this standard is not expected to have a material impact on the Company’s consolidated financial statements. In April 2015, the FASB issued ASU No. 2015-03 - Simplifying the Presentation of Debt Issuance Costs . This ASU changes the presentation of debt issuance costs by requiring an entity to present such costs as a direct deduction from the related debt liability rather than as an asset. Amortization of the costs will continue to be reported as interest expense. This guidance is effective for interim and annual reporting periods beginning after December 15, 2015. Early adoption is permitted. The Company is currently evaluating the effect that the updated standard will have on its consolidated balance sheets. In January 2015, the FASB issued ASU No. 2015-01 (Topic 225-20) - Income Statement—Extraordinary and Unusual Items which eliminates the concept of extraordinary items. This guidance removes the requirement to assess whether an event or transaction is both unusual in nature and infrequent in occurrence and to separately present any such items on the statement of operations after income from continuing operations. Rather, such items will either be presented as a separate component of income from continuing operations or disclosed in the notes to the financial statements. This guidance is effective for interim and annual periods beginning after December 15, 2015. Early adoption is permitted provided that the guidance is applied from the beginning of the fiscal year of adoption. The adoption of this guidance will not have a material impact on the Company's consolidated financial statements. In August 2014, the FASB issued ASU No. 2014-15 - Disclosure of Uncertainties about an Entity’s Ability to Continue as a Going Concern to provide guidance on management’s responsibility in evaluating whether there is substantial doubt about a company’s ability to continue as a going concern and to provide related footnote disclosures. This update is effective for the annual period ending after December 15, 2016, and for annual periods and interim periods thereafter. Early application is permitted. The adoption of this guidance will not have a material impact on the Company’s consolidated financial statements. In June 2014, the FASB issued ASU No. 2014-12 (Topic 718) - Compensation-Stock Compensation: Accounting for Share-Based Payments When the Terms of an Award Provide That a Performance Target Could Be Achieved after the Requisite Service Period (a consensus of the FASB Emerging Issues Task Force). This ASU clarifies that a performance target that affects vesting and that could be achieved after the requisite service period be treated as a performance condition. A reporting entity should apply existing guidance in Topic 718 as it relates to awards with performance conditions that affect vesting to account for such awards. As such, the performance target should not be reflected in estimating the grant-date fair value of the award. Compensation cost should be recognized in the period in which it becomes probable that the performance target will be achieved and should represent the compensation cost attributable to the period(s) for which the requisite service has already been rendered. This ASU may be applied either (a) prospectively to all awards granted or modified after the effective date or (b) retrospectively to all awards with performance targets that are outstanding as of the beginning of the earliest annual period presented in the financial statements and to all new or modified awards thereafter. The amendments in this update are effective for annual periods and interim periods within those annual periods beginning after December 15, 2015. Earlier adoption is permitted. The Company is evaluating the impact that this update will have on its consolidated financial statements. In May 2014, the FASB issued ASU No. 2014-09 - Revenue from Contracts with Customers , which supersedes most of the current revenue recognition requirements. The core principle of the new guidance 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 to which the entity expects to be entitled in exchange for those goods or services. New disclosures about the nature, amount, timing and uncertainty of revenue and cash flows arising from contracts with customers are also required. Entities must adopt the new guidance using one of two retrospective application methods. On April 29, 2015, the FASB issued an exposure draft to defer the effective date by one year. Pending finalization, this guidance is effective for the Company in the first quarter of 2018 and early application is permitted. The Company is currently evaluating the standard to determine the impact of its adoption on the consolidated financial statements.

The Founding Acquisition (Table

The Founding Acquisition (Tables) - The Founding Acquisition, MHGE Intermediate	9 Months Ended
	Sep. 30, 2015
Business Acquisition [Line Items]
Sources and Uses of Funds with the Founding Transactions	The sources and uses of funds in connection with the Founding Transactions are summarized below: Sources Proceeds from term loan facility $ 785,700 Proceeds from revolving credit facility 35,000 Proceeds from Notes 789,096 Proceeds from equity contributions 950,000 Total sources $ 2,559,796 Uses Equity purchase price $ 1,711,348 Transaction fees and expenses 131,339 Cash to balance sheet 88,255 Distribution to Parent 628,854 Total uses $ 2,559,796
Fair Value of Identifiable Assets Acquired and Liabilities Assumed	The table below summarizes the fair values of the assets acquired and liabilities assumed at the date of acquisition: Cash and equivalents $ 19,633 Accounts receivable and other current assets 132,750 Inventory 235,608 Pre-publication costs 109,064 Property, plant and equipment 102,836 Identifiable intangible assets 998,007 Other noncurrent assets 56,226 Accounts payable and accrued expenses (143,076 ) Deferred revenue (42,339 ) Other current liabilities (49,767 ) Deferred income tax liability (15,846 ) Other long-term liabilities (19,573 ) Noncontrolling interests (22,225 ) Goodwill 350,050 Purchase price $ 1,711,348
Intangible Assets Acquired as Part of Business Combination	The fair values of the finite acquired intangible assets will be amortized over their useful lives, which is consistent with the estimated useful life considerations used in determining their fair values. Customer and technology intangibles are amortized on a straight-line basis while content intangibles are amortized using the sum of the years digits method. Fair Value Useful Lives Brands $ 283,000 Indefinite Customers 140,000 11 - 14 years Content 566,007 8 - 14 years Technology 9,000 5 years

ALEKS Acquisition (Tables)

ALEKS Acquisition (Tables) - ALEKS Corporation	9 Months Ended
	Sep. 30, 2015
Business Acquisition [Line Items]
Fair Value of Identifiable Assets Acquired and Liabilities Assumed	The table below summarizes the estimated fair values of the assets acquired and liabilities assumed at the date of acquisition: Tangible assets 9,365 Identifiable intangible assets 40,700 Deferred revenue (2,754 ) Other liabilities (23,083 ) Goodwill 79,272 Purchase price $ 103,500
Finite-Lived Intangible Assets Acquired as Part of Business Combination	The fair values of the acquired intangible assets will be amortized on a straight-line basis over their useful lives which is consistent with the estimated useful life considerations used in determining their fair values. Fair Value Useful Lives Trade Name $ 5,300 10 years Customers 7,100 7 years Technology 28,300 7 years

LearnSmart Acquisition (Tables)

LearnSmart Acquisition (Tables) - LearnSmart	9 Months Ended
	Sep. 30, 2015
Business Acquisition [Line Items]
Fair Value of Identifiable Assets Acquired and Liabilities Assumed	The table below summarizes the estimated fair values of the assets acquired and liabilities assumed at the date of acquisition: Tangible assets $ 1,969 Identifiable intangible assets 44,800 Other liabilities (7,609 ) Goodwill 54,755 Purchase price $ 93,915
Finite-Lived Intangible Assets Acquired as Part of Business Combination	The fair values of the acquired intangible assets will be amortized on a straight-line basis over their useful lives of four and seven years, which is consistent with the estimated useful life considerations used in determining their fair values. Fair Value Useful Lives Technology $ 42,200 7 years Non - Compete 2,600 4 years

Inventories (Tables)

Inventories (Tables)	9 Months Ended
	Sep. 30, 2015
Inventory Disclosure [Abstract]
Inventory	Inventories consist of the following: As of September 30, 2015 December 31, 2014 Raw materials $ 1,253 $ 1,160 Work-in-progress 2,039 3,380 Finished goods 108,105 111,345 111,397 115,885 Reserves (37,209 ) (38,893 ) Inventories, net $ 74,188 $ 76,992

Debt (Tables)

Debt (Tables)	9 Months Ended
	Sep. 30, 2015
Debt Disclosure [Abstract]
Schedule of Debt	Long-term debt consisted of the following: As of September 30, 2015 December 31, 2014 Term loan facility $ 660,920 $ 663,555 Notes 791,608 790,798 Less current portion of long term debt (6,790 ) (6,880 ) Long Term Debt (1) $ 1,445,738 $ 1,447,473 (1) Long term debt balances reflect face value of debt less the unamortized discount.
Schedule of Maturities of Long-term Debt	The scheduled principal payments required under the terms of the Senior Facilities and the Notes as of September 30, 2015 were as follows: September 30, 2015 Remainder of 2015 $ 1,698 2016 6,792 2017 6,792 2018 6,792 2019 653,531 2020 and beyond 800,000 1,475,605 Less: Current portion 6,790 $ 1,468,815

Segment Reporting (Tables)

Segment Reporting (Tables)	9 Months Ended
	Sep. 30, 2015
Segment Reporting [Abstract]
Segment Reporting Information, by Segment	The following tables set forth information about the Company’s operations by its four segments: Three Months Ended Nine months ended September 30, 2015 2014 2015 2014 Adjusted Revenue: MHGE Higher Education $ 386,183 $ 382,753 $ 630,031 612,194 MHGE Professional 30,241 30,593 82,316 87,587 MHGE International 100,155 114,109 216,727 $ 241,389 MHGE Other 61 208 61 208 Total Adjusted Revenue (1) 516,640 527,663 929,135 941,378 Change in deferred revenue (79,361 ) (65,535 ) (41,116 ) (22,934 ) Total Consolidated Revenue $ 437,279 $ 462,128 $ 888,019 $ 918,444 (1) The elimination of inter-segment revenues was not significant to the revenues of any one segment. Adjusted EBITDA: MHGE Higher Education $ 234,603 $ 222,341 $ 245,953 218,892 MHGE Professional 7,267 9,262 16,108 22,298 MHGE International 24,206 32,309 20,270 28,557 MHGE Other 2,746 1,894 2,953 (319 ) Total Adjusted EBITDA $ 268,822 $ 265,806 $ 285,284 $ 269,428
Reconciliation of Adjusted EBITDA to Consolidated Statements of Operations	Reconciliation of Adjusted EBITDA to the consolidated statements of operations is as follows: Three Months Ended Nine months ended September 30, 2015 2014 2015 2014 Total Adjusted EBITDA $ 268,822 $ 265,806 $ 285,284 $ 269,428 Interest (expense) income, net (31,936 ) (35,466 ) (98,233 ) (115,612 ) Benefit (provision) for taxes on income (38,610 ) (13,186 ) (12,740 ) 5,753 Depreciation, amortization and pre-publication investment amortization (52,532 ) (49,634 ) (130,848 ) (136,009 ) Change in deferred revenue (79,361 ) (65,535 ) (41,116 ) (22,934 ) Restructuring and cost savings implementation charges (2,724 ) (3,136 ) (12,346 ) (17,426 ) Sponsor fees (875 ) (875 ) (2,625 ) (2,625 ) Purchase accounting — — — 2,600 Transaction costs — (162 ) — (3,583 ) Acquisition costs — (205 ) — (2,855 ) Physical separation costs — (7,833 ) — (18,941 ) Other (2,164 ) (5,641 ) (2,402 ) (6,969 ) Pre-publication investment cash costs 12,729 13,060 30,921 35,335 Net (loss) income 73,349 97,193 15,895 (13,838 ) Less: Net (income) loss attributable to noncontrolling interests — — — 299 Net (loss) income attributable to McGraw-Hill Global Education Intermediate Holdings, LLC $ 73,349 $ 97,193 $ 15,895 $ (13,539 )
Schedule of Revenue and Long-Lived Assets, by Geographic Region	The following is a schedule of revenue and long-lived assets by geographic region: Revenue (1) Three Months Ended Nine months ended September 30, 2015 2014 2015 2014 United States $ 343,327 $ 356,986 $ 668,626 $ 679,076 International 93,952 105,142 219,393 239,368 Total $ 437,279 $ 462,128 $ 888,019 $ 918,444 Long -lived Assets (2) As of September 30, 2015 December 31, 2014 United States $ 176,588 $ 191,745 International 34,443 19,667 Total $ 211,031 $ 211,412 (1) Revenues are attributed to a geographic region based on the location of customer. (2) Reflects total assets less current assets, goodwill, intangible assets, investments, deferred financing costs and non-current deferred tax assets.

Stock-Based Compensation (Table

Stock-Based Compensation (Tables)	9 Months Ended
	Sep. 30, 2015
Disclosure of Compensation Related Costs, Share-based Payments [Abstract]
Stock-based Compensation by Period	Stock-based compensation for the periods presented was as follows: Three Months Ended Nine months ended September 30, 2015 2014 2015 2014 Stock option expense $ 2,379 $ 1,024 $ 4,766 $ 3,428 Restricted stock and unit awards expense 841 591 2,591 1,736 Total stock-based compensation expense $ 3,220 $ 1,615 $ 7,357 $ 5,164

Restructuring (Tables)

Restructuring (Tables)	9 Months Ended
	Sep. 30, 2015
Restructuring and Related Activities [Abstract]
Restructuring and Related Costs	The following table summarizes restructuring information by reporting segment: MHGE Higher Education MHGE Professional MHGE International MHGE Other Total Balance at December 31, 2014 $ 11,218 $ 1,490 $ 5,864 $ — $ 18,572 Charges: Employee severance and other personal benefits 1,220 — 448 — 1,668 Lease termination costs — — 1,515 — 1,515 Payments: Employee severance and other personal benefits (10,230 ) (1,442 ) (4,880 ) — (16,552 ) Lease termination costs — — (1,515 ) — (1,515 ) Balance at September 30, 2015 $ 2,208 $ 48 $ 1,432 $ — $ 3,688

Guarantor Financial Informati35

Guarantor Financial Information (Tables)	9 Months Ended
	Sep. 30, 2015
Organization, Consolidation and Presentation of Financial Statements [Abstract]
Condensed Income Statement	Three Months Ended September 30, 2015 MHGE Intermediate Guarantor Subsidiaries Non-Guarantor Subsidiaries Eliminations MHGE Intermediate (Consolidated) Revenue $ — $ 343,327 $ 93,952 $ — $ 437,279 Cost of goods sold — 75,621 39,052 — 114,673 Gross profit — 267,706 54,900 — 322,606 Operating expenses Operating & administration expenses 875 109,466 39,716 238 150,295 Depreciation — 6,876 60 — 6,936 Amortization of intangibles — 21,098 1,657 — 22,755 Total operating expenses 875 137,440 41,433 238 179,986 Operating (loss) income (875 ) 130,266 13,467 (238 ) 142,620 Interest expense (income), net 31,881 — 55 — 31,936 Equity in (income) loss of subsidiaries (144,715 ) — 144,715 — Other (income) — (1,275 ) — — (1,275 ) Income (Loss) from operations before taxes on income 111,959 131,541 13,412 (144,953 ) 111,959 Income tax (benefit) provision 38,610 69,465 3,825 (73,290 ) 38,610 Net (loss) income $ 73,349 $ 62,076 $ 9,587 $ (71,663 ) $ 73,349 Comprehensive (loss) income $ 73,349 $ 62,076 $ 2,020 $ (71,663 ) $ 65,782 Three Months Ended September 30, 2014 MHGE Intermediate Guarantor Subsidiaries Non-Guarantor Subsidiaries Eliminations MHGE Intermediate (Consolidated) Revenue $ — $ 353,288 $ 108,840 $ — $ 462,128 Cost of goods sold — 82,510 44,109 — 126,619 Gross profit — 270,778 64,731 — 335,509 Operating expenses Operating & administration expenses 875 118,061 45,233 2,300 166,469 Depreciation — 1,380 667 — 2,047 Amortization of intangibles — 20,242 2,019 — 22,261 Transaction costs 162 — — — 162 Total operating expenses 1,037 139,683 47,919 2,300 190,939 Operating (loss) income (1,037 ) 131,095 16,812 (2,300 ) 144,570 Interest expense (income), net 35,551 — (85 ) — 35,466 Equity in (income) loss of subsidiaries (146,967 ) — — 146,967 — Other (income) — (1,275 ) — — (1,275 ) (Loss) income from operations before taxes on income 110,379 132,370 16,897 (149,267 ) 110,379 Income tax (benefit) provision 13,186 15,813 5,475 (21,288 ) 13,186 Net (loss) income 97,193 116,557 11,422 (127,979 ) 97,193 Less: Net (income) loss attributable to noncontrolling interests — — — — — Net (loss) income attributable to McGraw-Hill Global Education Intermediate Holdings, LLC $ 97,193 $ 116,557 $ 11,422 $ (127,979 ) $ 97,193 Comprehensive (loss) income attributable to McGraw-Hill Global Education Intermediate Holdings, LLC $ 97,193 $ 116,557 $ (158 ) $ (127,979 ) $ 85,613 Nine months ended September 30, 2015 MHGE Intermediate Guarantor Subsidiaries Non-Guarantor Subsidiaries Eliminations MHGE Intermediate (Consolidated) Revenue $ — $ 675,319 $ 212,700 $ — $ 888,019 Cost of goods sold — 152,465 92,095 — 244,560 Gross profit — 522,854 120,605 — 643,459 Operating expenses Operating & administration expenses 2,625 311,862 121,880 (52 ) 436,315 Depreciation — 19,365 112 — 19,477 Amortization of intangibles — 64,398 5,005 — 69,403 Total operating expenses 2,625 395,625 126,997 (52 ) 525,195 Operating (loss) income (2,625 ) 127,229 (6,392 ) 52 118,264 Interest expense (income), net 97,696 — 537 — 98,233 Equity in (income) loss of subsidiaries (128,957 ) — — 128,957 — Other (income) — (8,604 ) — — (8,604 ) Income (Loss) from operations before taxes on income 28,636 135,833 (6,929 ) (128,905 ) 28,635 Income tax (benefit) provision 12,741 68,847 (1,778 ) (67,070 ) 12,740 Net (loss) income $ 15,895 $ 66,986 $ (5,151 ) $ (61,835 ) $ 15,895 Comprehensive (loss) income $ 15,895 $ 66,986 $ (17,756 ) $ (61,835 ) $ 3,290 Nine months ended September 30, 2014 MHGE Intermediate Guarantor Subsidiaries Non-Guarantor Subsidiaries Eliminations MHGE Intermediate (Consolidated) Revenue $ — $ 680,746 $ 237,698 $ — $ 918,444 Cost of goods sold — 153,892 97,731 — 251,623 Gross profit — 526,854 139,967 — 666,821 Operating expenses Operating & administration expenses 2,625 350,981 135,485 (685 ) 488,406 Depreciation — 8,308 2,650 — 10,958 Amortization of intangibles — 82,631 (3,624 ) — 79,007 Transaction costs 3,583 — — — 3,583 Total operating expenses 6,208 441,920 134,511 (685 ) 581,954 Operating (loss) income (6,208 ) 84,934 5,456 685 84,867 Interest expense (income), net 115,876 — (264 ) — 115,612 Equity in (income) loss of subsidiaries (102,792 ) — — 102,792 — Other (income) — (11,154 ) — — (11,154 ) (Loss) income from operations before taxes on income (19,292 ) 96,088 5,720 (102,107 ) (19,591 ) Income tax (benefit) provision (5,753 ) 14,839 1,948 (16,787 ) (5,753 ) Net (loss) income (13,539 ) 81,249 3,772 (85,320 ) (13,838 ) Less: Net (income) loss attributable to noncontrolling interests — — 299 — 299 Net (loss) income attributable to McGraw-Hill Global Education Intermediate Holdings, LLC $ (13,539 ) $ 81,249 $ 4,071 $ (85,320 ) $ (13,539 ) Comprehensive (loss) income attributable to McGraw-Hill Global Education Intermediate Holdings, LLC $ (13,539 ) $ 81,249 $ 1,765 $ (85,320 ) $ (15,845 )
Condensed Balance Sheet	September 30, 2015 MHGE Intermediate Guarantor Subsidiaries Non-Guarantor Subsidiaries Eliminations MHGE Intermediate (Consolidated) ASSETS Current assets: Cash and equivalents $ — $ 495,767 $ 58,575 $ (359,392 ) 194,950 Accounts receivable — 165,573 88,524 — 254,097 Related party receivable — 261,551 — (254,321 ) 7,230 Inventories, net — 48,403 25,733 52 74,188 Deferred income taxes — 22,745 7,913 — 30,658 Prepaid and other current assets 62,715 22,113 15,803 (60,091 ) 40,540 Total current assets 62,715 1,016,152 196,548 (673,752 ) 601,663 Pre-publication costs, net — 55,478 12,921 — 68,399 Property, plant and equipment, net — 90,214 1,990 — 92,204 Goodwill — 425,307 48,944 — 474,251 Other intangible assets, net — 778,739 55,935 — 834,674 Investments 1,970,996 102 6,484 (1,970,996 ) 6,586 Deferred income taxes non-current — 33,639 1,531 — 35,170 Other non-current assets 57,368 49,153 1,637 — 108,158 Total assets $ 2,091,079 $ 2,448,784 $ 325,990 $ (2,644,748 ) $ 2,221,105 LIABILITIES AND EQUITY Current liabilities Accounts payable $ 362,017 $ 102,519 $ 10,945 $ (359,392 ) $ 116,089 Accrued royalties — 32,012 8,322 — 40,334 Accrued compensation and contributions to retirement plans — 30,003 11,366 — 41,369 Deferred revenue — 175,463 11,258 — 186,721 Current portion of long-term debt 6,790 — — — 6,790 Related party — 619 253,700 (254,319 ) — Other current liabilities 50,302 92,571 21,085 (60,084 ) 103,874 Total current liabilities 419,109 433,187 316,676 (673,795 ) 495,177 Long-term debt 1,445,738 — — — 1,445,738 Deferred income taxes — — 7,993 — 7,993 Other non-current liabilities — 36,496 2,970 — 39,466 Total liabilities 1,864,847 469,683 327,639 (673,795 ) 1,988,374 Commitments and contingencies Equity Member's equity 292,474 1,811,369 46,905 (1,812,285 ) 338,463 Accumulated deficit (66,242 ) 167,732 (9,064 ) (158,668 ) (66,242 ) Accumulated other comprehensive loss — — (39,490 ) — (39,490 ) Total equity 226,232 1,979,101 (1,649 ) (1,970,953 ) 232,731 Total liabilities and equity $ 2,091,079 $ 2,448,784 $ 325,990 $ (2,644,748 ) $ 2,221,105 December 31, 2014 MHGE Intermediate Guarantor Subsidiaries Non-Guarantor Subsidiaries Eliminations MHGE Intermediate (Consolidated) ASSETS Current assets: Cash and equivalents $ — $ 466,617 $ 49,737 $ (284,256 ) $ 232,098 Accounts receivable — 122,047 82,025 — 204,072 Related party — 253,071 — (253,071 ) — Inventories, net — 50,330 27,164 (502 ) 76,992 Deferred income taxes — 22,745 8,793 — 31,538 Prepaid and other current assets 74,577 11,925 17,036 (72,828 ) 30,710 Total current assets 74,577 926,735 184,755 (610,657 ) 575,410 Pre-publication costs, net — 63,130 17,850 — 80,980 Property, plant and equipment, net — 91,926 — — 91,926 Goodwill — 423,629 53,695 — 477,324 Other intangible assets, net — 842,907 63,758 — 906,665 Investments 1,842,551 104 9,115 (1,842,551 ) 9,219 Deferred income taxes non-current — 42,242 1,198 — 43,440 Other non-current assets 63,004 36,689 1,817 — 101,510 Total assets $ 1,980,132 $ 2,427,362 $ 332,188 $ (2,453,208 ) $ 2,286,474 LIABILITIES AND EQUITY Current liabilities Accounts payable $ 284,256 $ 115,594 $ 14,871 $ (284,256 ) $ 130,465 Accrued royalties — 89,796 12,031 — 101,827 Accrued compensation and contributions to retirement plans — 50,615 15,628 — 66,243 Deferred revenue — 117,211 7,340 — 124,551 Current portion of long-term debt 6,880 — — — 6,880 Related party — 889 253,071 (253,071 ) 889 Other current liabilities 31,186 98,036 32,766 (72,828 ) 89,160 Total current liabilities 322,322 472,141 335,707 (610,155 ) 520,015 Long-term debt 1,447,473 — — — 1,447,473 Deferred income taxes — — 8,288 — 8,288 Other non-current liabilities — 45,244 3,595 — 48,839 Total liabilities 1,769,795 517,385 347,590 (610,155 ) 2,024,615 Commitments and contingencies Equity Member's equity 292,474 1,809,231 15,396 (1,746,220 ) 370,881 Accumulated deficit (82,137 ) 100,746 (3,913 ) (96,833 ) (82,137 ) Accumulated other comprehensive loss — — (26,885 ) — (26,885 ) Total equity 210,337 1,909,977 (15,402 ) (1,843,053 ) 261,859 Total liabilities and equity $ 1,980,132 $ 2,427,362 $ 332,188 $ (2,453,208 ) $ 2,286,474
Condensed Cash Flow Statement	Nine months ended September 30, 2015 MHGE Intermediate Guarantor Subsidiaries Non-Guarantor Subsidiaries Eliminations MHGE Intermediate (Consolidated) Operating activities Cash provided by operating activities $ 5,440 $ 114,154 $ 23,359 $ (75,136 ) $ 67,817 Investing activities Investment in pre-publication costs — (27,103 ) (3,818 ) — (30,921 ) Capital expenditures — (30,360 ) (609 ) — (30,969 ) Acquisitions and investments — — (6,879 ) — (6,879 ) Proceeds from sale of investment — 12,500 — — 12,500 Proceeds from dispositions — 81 — — 81 Cash used for investing activities — (44,882 ) (11,306 ) — (56,188 ) Financing activities Payment of term loan (5,440 ) — — — (5,440 ) Dividend payment to MHGE Parent — (39,822 ) — — (39,822 ) Dividends on restricted stock unit — (300 ) — — (300 ) Cash provided by (used for) financing activities (5,440 ) (40,122 ) — — (45,562 ) Effect of exchange rate changes on cash — — (3,215 ) — (3,215 ) Net change in cash and cash equivalents — 29,150 8,838 (75,136 ) (37,148 ) Cash and cash equivalents at the beginning of the period — 466,617 49,737 (284,256 ) 232,098 Cash and cash equivalents, ending balance $ — $ 495,767 $ 58,575 $ (359,392 ) $ 194,950 Nine months ended September 30, 2014 MHGE Intermediate Guarantor Subsidiaries Non-Guarantor Subsidiaries Eliminations MHGE Intermediate (Consolidated) Operating activities Cash provided by operating activities $ 40,160 $ 114,915 $ 41,303 $ (113,766 ) $ 82,612 Investing activities Investment in pre-publication costs — (28,794 ) (6,541 ) — (35,335 ) Capital expenditures — (13,365 ) (1,952 ) — (15,317 ) Acquisitions and investments — — (56,453 ) — (56,453 ) Proceeds from sale of investment — 54 3,250 — 3,304 Proceeds from dispositions — 17 8,865 — 8,882 Cash used for investing activities — (42,088 ) (52,831 ) — (94,919 ) Financing activities Payment of term loan (40,160 ) — — — (40,160 ) Payment of deferred purchase price — (53,500 ) — — (53,500 ) Dividends paid to noncontrolling interests — — (169 ) — (169 ) Cash provided by (used for) financing activities (40,160 ) (53,500 ) (169 ) — (93,829 ) Effect of exchange rate changes on cash — — (220 ) — (220 ) Net change in cash and cash equivalents — 19,327 (11,917 ) (113,766 ) (106,356 ) Cash and cash equivalents at the beginning of the period — 301,985 67,429 (116,024 ) 253,390 Cash and cash equivalents, ending balance $ — $ 321,312 $ 55,512 $ (229,790 ) $ 147,034

Supplemental Parent Company E36

Supplemental Parent Company Equity Information (Tables)	9 Months Ended
	Sep. 30, 2015
Equity [Abstract]
Schedule of Parent Company Equity	Parent Company equity is summarized as follows: Total Parent Company Equity Noncontrolling Interest Total Equity Balance at December 31, 2013 $ 199,778 $ 23,490 $ 223,268 Comprehensive loss, net of tax (12,851 ) (686 ) (13,537 ) Capital contribution 42,500 — 42,500 Georgia Holdings shares for acquisition earn out 8,500 — 8,500 Acquisition of non-controlling interest (4,815 ) (22,635 ) (27,450 ) Stock-based compensation 7,288 — 7,288 Dividend on restricted stock units (1,189 ) — (1,189 ) Non-cash capital contribution 22,648 — 22,648 Dividends paid to non-controlling interests — (169 ) (169 ) Balance at December 31, 2014 $ 261,859 $ — $ 261,859 Comprehensive loss, net of tax 3,290 — 3,290 Stock-based compensation 7,357 — 7,357 Non-cash capital distribution (39,063 ) — (39,063 ) Dividend on restricted stock units (712 ) — (712 ) Balance at September 30, 2015 $ 232,731 $ — $ 232,731

Basis of Presentation and Acc37

Basis of Presentation and Accounting Policies - Acquisition (Details) - USD ($) $ in Thousands	Mar. 22, 2013	Sep. 30, 2015	Sep. 30, 2014
Business Acquisition [Line Items]
Payments to acquire business, cash		$ 6,879	$ 56,453
The Founding Acquisition
Business Acquisition [Line Items]
Payments to acquire business, cash	$ 2,184,071
The Founding Acquisition, MHSE Holdings
Business Acquisition [Line Items]
Payments to acquire business, cash	472,723
MHE Acquisition, LLC | The Founding Acquisition, MHGE Intermediate
Business Acquisition [Line Items]
Payments to acquire business, cash	$ 1,711,348

Basis of Presentation and Acc38

Basis of Presentation and Accounting Policies - Cash and Cash Equivalents (Details) - USD ($) $ in Thousands	Sep. 30, 2015	Dec. 31, 2014	Sep. 30, 2014	Dec. 31, 2013
Organization, Consolidation and Presentation of Financial Statements [Abstract]
Cash and equivalents	$ 194,950	$ 232,098	$ 147,034	$ 253,390

Basis of Presentation and Acc39

Basis of Presentation and Accounting Policies - Concentration of Credit Risk (Details) - Customer Concentration Risk - customer	3 Months Ended		9 Months Ended		12 Months Ended
	Sep. 30, 2015	Sep. 30, 2014	Sep. 30, 2015	Sep. 30, 2014	Dec. 31, 2014
Accounts Receivable, Gross
Concentration Risk [Line Items]
Concentration risk percentage			44.00%		31.00%
Number of customers			2		2
Sales Revenue, Gross
Concentration Risk [Line Items]
Concentration risk percentage				12.00%
Number of customers	2	2	2	2
Sales Revenue, Gross | Customer One and Two
Concentration Risk [Line Items]
Concentration risk percentage			14.00%
Sales Revenue, Gross | Customer One
Concentration Risk [Line Items]
Concentration risk percentage	20.00%	15.00%
Sales Revenue, Gross | Customer Two
Concentration Risk [Line Items]
Concentration risk percentage	17.00%	14.00%

Basis of Presentation and Acc40

Basis of Presentation and Accounting Policies - Inventories (Details) - USD ($) $ in Thousands	Sep. 30, 2015	Dec. 31, 2014
Organization, Consolidation and Presentation of Financial Statements [Abstract]
Inventory valuation reserve	$ 37,209	$ 38,893

Basis of Presentation and Acc41

Basis of Presentation and Accounting Policies - Prepublication Costs (Details)	9 Months Ended
	Sep. 30, 2015
Organization, Consolidation and Presentation of Financial Statements [Abstract]
Prepublication costs, useful life (up to)	6 years

Basis of Presentation and Acc42

Basis of Presentation and Accounting Policies - Property, Plant, and Equipment (Details) - Maximum	9 Months Ended
	Sep. 30, 2015
Building
Property, Plant and Equipment [Line Items]
Property, plant and equipment, useful life	28 years
Furniture and Fixtures
Property, Plant and Equipment [Line Items]
Property, plant and equipment, useful life	7 years
Equipment
Property, Plant and Equipment [Line Items]
Property, plant and equipment, useful life	7 years

Basis of Presentation and Acc43

Basis of Presentation and Accounting Policies - Additional Information (Details)	3 Months Ended		9 Months Ended
	Sep. 30, 2015USD ($)	Sep. 30, 2014USD ($)	Sep. 30, 2015USD ($)reporting_unit	Sep. 30, 2014USD ($)	Dec. 31, 2014USD ($)
Accounting Policies [Line Items]
Impairment of long-lived assets	$ 0	$ 0	$ 0	$ 0
Number of reporting units | reporting_unit			3
Goodwill and intangible asset impairment	0	$ 0	$ 0	$ 0
Minimum
Accounting Policies [Line Items]
Deferred technology costs, useful life			3 years
Maximum
Accounting Policies [Line Items]
Deferred technology costs, useful life			7 years
Other noncurrent assets
Accounting Policies [Line Items]
Deferred technology costs, gross	61,516,000		$ 61,516,000		$ 42,030,000
Deferred technology costs, accumulated amortization	$ 20,200,000		$ 20,200,000		$ 12,433,000

The Founding Transactions - Nar

The Founding Transactions - Narrative (Details)	Mar. 22, 2013USD ($)
Debt Instrument [Line Items]
Equity contribution	$ 950,000,000
Senior Notes | 9.75% First-Priority Senior Secured Notes due 2021
Debt Instrument [Line Items]
Debt, face amount	$ 800,000,000
Debt, stated interest rate	9.75%
Credit Suisse AG | Line of Credit
Debt Instrument [Line Items]
Line of credit, maximum borrowing capacity	$ 1,050,000,000
Credit Suisse AG | Line of Credit | Term Loan Facility
Debt Instrument [Line Items]
Line of credit, maximum borrowing capacity	$ 810,000,000
Debt term	6 years
Credit Suisse AG | Line of Credit | Revolving Credit Facility
Debt Instrument [Line Items]
Line of credit, maximum borrowing capacity	$ 240,000,000
Debt term	5 years
Amount drawn on revolving credit facility	$ 35,000,000

The Founding Acquisition - Narr

The Founding Acquisition - Narrative (Details) - USD ($) $ in Thousands	Oct. 16, 2013	Mar. 22, 2013	Sep. 30, 2015	Sep. 30, 2014	Sep. 30, 2015	Sep. 30, 2014	Dec. 31, 2014
Business Acquisition [Line Items]
Payments to acquire business, cash					$ 6,879	$ 56,453
Goodwill			$ 474,251		474,251		$ 477,324
Amortization of intangibles			22,755	$ 22,261	69,403	79,007
MHE Acquisition, LLC
Business Acquisition [Line Items]
Amortization of intangibles			$ 19,987	$ 21,514	$ 61,106	$ 72,752
MHE Acquisition, LLC | The Founding Acquisition, MHGE Intermediate
Business Acquisition [Line Items]
Payments to acquire business, cash		$ 1,711,348
Goodwill		350,050
Proceeds from (payments for) working capital adjustments	$ 28,099
Deferred income tax liability		15,846
Payments of distributions to parent		$ 628,854

The Founding Acquisition - Sour

The Founding Acquisition - Sources and Uses of Fund (Details) - USD ($) $ in Thousands	Mar. 22, 2013	Sep. 30, 2015	Sep. 30, 2014	Sep. 30, 2015	Sep. 30, 2014
Business Acquisition [Line Items]
Proceeds from equity contributions	$ 950,000
Equity purchase price				$ 6,879	$ 56,453
Transaction fees and expenses		$ 0	$ 205	$ 0	$ 2,855
MHE Acquisition, LLC | The Founding Acquisition, MHGE Intermediate
Business Acquisition [Line Items]
Proceeds from equity contributions	950,000
Equity purchase price	1,711,348
Transaction fees and expenses	131,339
Cash to balance sheet	88,255
Distribution to Parent	628,854
Total uses/source	2,559,796
MHE Acquisition, LLC | The Founding Acquisition, MHGE Intermediate | Line of Credit | Term Loan Facility
Business Acquisition [Line Items]
Borrowings on long-term debt	785,700
MHE Acquisition, LLC | The Founding Acquisition, MHGE Intermediate | Line of Credit | Revolving Credit Facility
Business Acquisition [Line Items]
Borrowings on long-term debt	35,000
MHE Acquisition, LLC | The Founding Acquisition, MHGE Intermediate | Senior Notes
Business Acquisition [Line Items]
Borrowings on long-term debt	$ 789,096

The Founding Acquisition - Asse

The Founding Acquisition - Assets Acquired and Liabilities Assumed (Details) - USD ($) $ in Thousands	Sep. 30, 2015	Dec. 31, 2014	Mar. 22, 2013
Business Combination, Recognized Identifiable Assets Acquired, Goodwill, and Liabilities Assumed, Less Noncontrolling Interest [Abstract]
Goodwill	$ 474,251	$ 477,324
MHE Acquisition, LLC | The Founding Acquisition, MHGE Intermediate
Business Combination, Recognized Identifiable Assets Acquired, Goodwill, and Liabilities Assumed, Less Noncontrolling Interest [Abstract]
Cash and equivalents			$ 19,633
Accounts receivable and other current assets			132,750
Inventory			235,608
Pre-publication costs			109,064
Property, plant and equipment			102,836
Identifiable intangible assets			998,007
Other noncurrent assets			56,226
Accounts payable and accrued expenses			(143,076)
Deferred revenue			(42,339)
Other current liabilities			(49,767)
Deferred income tax liability			(15,846)
Other long-term liabilities			(19,573)
Noncontrolling interests			(22,225)
Goodwill			350,050
Purchase price			$ 1,711,348

The Founding Acquisition - Acqu

The Founding Acquisition - Acquired Intangible Assets (Details) - MHE Acquisition, LLC $ in Thousands	Mar. 22, 2013USD ($)
Brands
Business Acquisition [Line Items]
Indefinite-lived intangible assets acquired, fair value	$ 283,000
Customers
Business Acquisition [Line Items]
Finite-lived intangible assets acquired, fair value	$ 140,000
Customers | Minimum
Business Acquisition [Line Items]
Finite-lived intangible asset, useful life	11 years
Customers | Maximum
Business Acquisition [Line Items]
Finite-lived intangible asset, useful life	14 years
Content
Business Acquisition [Line Items]
Finite-lived intangible assets acquired, fair value	$ 566,007
Content | Minimum
Business Acquisition [Line Items]
Finite-lived intangible asset, useful life	8 years
Content | Maximum
Business Acquisition [Line Items]
Finite-lived intangible asset, useful life	14 years
Technology
Business Acquisition [Line Items]
Finite-lived intangible assets acquired, fair value	$ 9,000
Finite-lived intangible asset, useful life	5 years

ALEKS Acquisition - Narrative (

ALEKS Acquisition - Narrative (Details) - USD ($) $ in Thousands	Oct. 31, 2013	Aug. 01, 2013	Sep. 30, 2015	Sep. 30, 2014	Sep. 30, 2015	Sep. 30, 2014	Dec. 31, 2013	Dec. 31, 2014
Business Acquisition [Line Items]
Payments to acquire business, cash					$ 6,879	$ 56,453
Transaction fees and expenses			$ 0	$ 205	0	2,855
Goodwill			474,251		474,251			$ 477,324
Amortization of intangibles			22,755	22,261	69,403	79,007
ALEKS Corporation | MHSE Holdings | Reseller Agreement with Exclusivity Provision
Business Acquisition [Line Items]
Reseller agreement, proceeds from exclusivity fee		$ 25,500
Reseller agreement, period of revenue recognition		5 years
Proceeds from royalties received		$ 12,500
Royalty proceeds, percent of net sales		15.00%
ALEKS Corporation
Business Acquisition [Line Items]
Consideration transferred		$ 103,500
Payments to acquire business, cash		50,000
Payments to acquire business, cash held in escrow		15,000
Proceeds from (payments for) working capital adjustments	$ 1,422
Goodwill		$ 79,272
Amortization of intangibles			$ 1,397	$ 2,366	$ 4,191	$ 1,704
ALEKS Corporation | Operating and administrative expenses
Business Acquisition [Line Items]
Transaction fees and expenses							$ 2,549
ALEKS Corporation | MHSE Holdings | Reseller Agreement with Exclusivity Provision
Business Acquisition [Line Items]
Reseller agreement, period of revenue recognition		5 years
ALEKS Corporation | Other current liabilities
Business Acquisition [Line Items]
Business acquisition, liabilities incurred		$ 53,500					$ 53,500
MHGE Higher Education | ALEKS Corporation
Business Acquisition [Line Items]
Goodwill		$ 79,272

ALEKS Acquisition - Assets Acqu

ALEKS Acquisition - Assets Acquired and Liabilities Assumed (Details) - USD ($) $ in Thousands	Sep. 30, 2015	Dec. 31, 2014	Aug. 01, 2013
Business Combination, Recognized Identifiable Assets Acquired and Liabilities Assumed, Net [Abstract]
Goodwill	$ 474,251	$ 477,324
ALEKS Corporation
Business Combination, Recognized Identifiable Assets Acquired and Liabilities Assumed, Net [Abstract]
Tangible assets			$ 9,365
Identifiable intangible assets			40,700
Deferred revenue			(2,754)
Other liabilities			(23,083)
Goodwill			79,272
Purchase price			$ 103,500

ALEKS Acquisition - Fair Value

ALEKS Acquisition - Fair Value of the Acquired Intangible Assets (Details) - ALEKS Corporation $ in Thousands	9 Months Ended
	Sep. 30, 2015USD ($)
Trade Name
Acquired Finite-Lived Intangible Assets [Line Items]
Finite-lived intangible assets acquired, fair value	$ 5,300
Finite-lived intangible asset, useful life	10 years
Customers
Acquired Finite-Lived Intangible Assets [Line Items]
Finite-lived intangible assets acquired, fair value	$ 7,100
Finite-lived intangible asset, useful life	7 years
Technology
Acquired Finite-Lived Intangible Assets [Line Items]
Finite-lived intangible assets acquired, fair value	$ 28,300
Finite-lived intangible asset, useful life	7 years

LearnSmart Acquisition - Narrat

LearnSmart Acquisition - Narrative (Details) - USD ($) $ in Thousands	Jul. 18, 2014	Feb. 06, 2014	Sep. 30, 2015	Sep. 30, 2014	Sep. 30, 2015	Sep. 30, 2014	Dec. 31, 2014	Jan. 31, 2013
Business Acquisition [Line Items]
Payments to acquire business, cash					$ 6,879	$ 56,453
Goodwill			$ 474,251		474,251		$ 477,324
Amortization of intangibles			22,755	$ 22,261	69,403	79,007
LearnSmart
Business Acquisition [Line Items]
Percentage of voting interest acquired		80.00%
Consideration transferred		$ 78,049
Payments to acquire business, cash		29,003
Contingent consideration for designated project and deliverable		9,800
Equity interest in acquiree prior to acquisition, percentage								20.00%
Equity interest in acquiree prior to acquisition, fair value		15,866
Consideration transferred, including equity interest in acquired held prior to combination		93,915
Payments for (proceeds from) working capital adjustments	$ 959
Goodwill		54,755
Amortization of intangibles			$ 1,348	$ 1,658	$ 3,907	4,528
LearnSmart | Successful Project Deliverable
Business Acquisition [Line Items]
Contingent consideration for designated project and deliverable		2,700
LearnSmart | Expense Reimbursement
Business Acquisition [Line Items]
Contingent consideration for designated project and deliverable		$ 5,000
Expense reimbursement period		4 years
LearnSmart | Other income
Business Acquisition [Line Items]
Gain on fair value adjustment to original stake in company						$ 7,329
LearnSmart | Minimum
Business Acquisition [Line Items]
Finite-lived intangible asset, useful life		4 years
LearnSmart | Maximum
Business Acquisition [Line Items]
Finite-lived intangible asset, useful life		7 years

LearnSmart Acquisition - Assets

LearnSmart Acquisition - Assets Acquired and Liabilities Assumed (Details) - USD ($) $ in Thousands	Sep. 30, 2015	Dec. 31, 2014	Feb. 06, 2014
Business Acquisition [Line Items]
Goodwill	$ 474,251	$ 477,324
LearnSmart
Business Acquisition [Line Items]
Tangible assets			$ 1,969
Identifiable intangible assets			44,800
Other liabilities			(7,609)
Goodwill			54,755
Purchase price			$ 93,915

LearnSmart Acquisition - Intang

LearnSmart Acquisition - Intangible Assets (Details) (Details) - LearnSmart $ in Thousands	9 Months Ended
	Sep. 30, 2015USD ($)
Technology
Acquired Finite-Lived Intangible Assets [Line Items]
Finite-lived intangible assets acquired, fair value	$ 42,200
Finite-lived intangible asset, useful life	7 years
Noncompete Agreements
Acquired Finite-Lived Intangible Assets [Line Items]
Finite-lived intangible assets acquired, fair value	$ 2,600
Finite-lived intangible asset, useful life	4 years

Ryerson Acquisition - Narrative

Ryerson Acquisition - Narrative (Details) - USD ($) $ in Thousands	Jun. 17, 2014	Dec. 31, 2014
Business Acquisition [Line Items]
Purchase of noncontrolling interest, excess of the purchase price over the book value		$ 27,450
Ryerson
Business Acquisition [Line Items]
Percentage of voting interest acquired	30.00%
Payments to acquired additional interest in subsidiary	$ 27,450
Member's Equity | Ryerson
Business Acquisition [Line Items]
Purchase of noncontrolling interest, excess of the purchase price over the book value	$ 4,815

Inventories - Schedule of Inven

Inventories - Schedule of Inventory (Details) - USD ($) $ in Thousands	Sep. 30, 2015	Dec. 31, 2014
Inventory Disclosure [Abstract]
Raw materials	$ 1,253	$ 1,160
Work-in-progress	2,039	3,380
Finished goods	108,105	111,345
Inventory, gross	111,397	115,885
Reserves	(37,209)	(38,893)
Inventories, net	$ 74,188	$ 76,992

Debt - Narrative (Details)

Debt - Narrative (Details)	May. 04, 2015USD ($)	Mar. 24, 2014USD ($)	Mar. 22, 2013USD ($)	Sep. 30, 2015USD ($)	Sep. 30, 2014USD ($)	Sep. 30, 2015USD ($)	Sep. 30, 2014USD ($)	Dec. 31, 2014USD ($)
Debt Instrument [Line Items]
Amortization of debt discount						$ 3,616,000	$ 4,060,000
Line of Credit
Debt Instrument [Line Items]
Long-term debt				$ 660,920,000		$ 660,920,000		$ 663,555,000
Line of Credit | Credit Suisse AG
Debt Instrument [Line Items]
Line of credit, maximum borrowing capacity			$ 1,050,000,000
Obligations, percentage of capital stock guaranteed by first-tier foreign subsidiaries				65.00%		65.00%
Line of Credit | Term Loan Facility | Credit Suisse AG
Debt Instrument [Line Items]
Line of credit, maximum borrowing capacity			$ 810,000,000
Debt term			6 years
Debt discount, quarterly amortization rate	0.25%	0.25%
Debt discount percentage				3.00%		3.00%
Discount, annual amortization rate				1.00%		1.00%
Line of credit facility, fair value of amount outstanding				$ 676,450,000		$ 676,450,000		677,640,000
Line of Credit | Term Loan Facility | Credit Suisse AG | Interest Expense
Debt Instrument [Line Items]
Amortization of debt discount				$ 3,884,000	$ 3,371,000	$ 8,644,000	9,239,000
Line of Credit | Term Loan Facility | Credit Suisse AG | London Interbank Offered Rate (LIBOR)
Debt Instrument [Line Items]
Line of credit, interest rate at period end				4.75%		4.75%
Line of Credit | Revolving Credit Facility | Credit Suisse AG
Debt Instrument [Line Items]
Line of credit, maximum borrowing capacity			$ 240,000,000
Debt term			5 years
Line of credit, current borrowing capacity				$ 240,000,000		$ 240,000,000
Line of credit, amount outstanding				$ 0		$ 0
Debt discount percentage				2.00%		2.00%
Maximum leverage ratio				7		7
Line of credit, covenant, minimum percentage drawn implementing quarterly testing (more than)				20.00%		20.00%
Line of credit, covenant, percentage drawn (less than)				20.00%		20.00%
Senior Notes
Debt Instrument [Line Items]
Long-term debt				$ 791,608,000		$ 791,608,000		790,798,000
Senior Notes | 9.75% First-Priority Senior Secured Notes due 2021
Debt Instrument [Line Items]
Debt discount percentage			1.36%
Debt, face amount			$ 800,000,000
Debt, stated interest rate			9.75%
Debt, incremental interest rate		0.25%
Debt, fair value				870,000,000		870,000,000		$ 890,000,000
Senior Notes | 9.75% First-Priority Senior Secured Notes due 2021 | Credit Suisse AG | Interest Expense
Debt Instrument [Line Items]
Amortization of debt discount				$ 1,208,000	$ 1,498,000	$ 3,561,000	$ 4,494,000
MHGE Parent | Line of Credit | Term Loan Facility | Credit Suisse AG
Debt Instrument [Line Items]
Line of credit, voluntary payment, principal	$ 325,000	$ 35,000,000
Long-term debt	679,000,000	687,925,000
Line of credit, periodic payment, principal	$ 1,698,000	$ 1,720,000	$ 2,025,000
Debt discount, quarterly amortization rate	0.25%
MHGE Parent | Line of Credit | Term Loan Facility | Credit Suisse AG | London Interbank Offered Rate (LIBOR)
Debt Instrument [Line Items]
Basis spread on variable rate	3.75%	4.75%	7.75%
Variable rate, floor	1.00%	1.00%	1.25%

Debt - Schedule of Long-Term De

Debt - Schedule of Long-Term Debt (Details) - USD ($) $ in Thousands	Sep. 30, 2015	Dec. 31, 2014
Debt Instrument [Line Items]
Long-term debt, current	$ (6,790)	$ (6,880)
Long-term debt	1,445,738	1,447,473
Line of Credit
Debt Instrument [Line Items]
Long-term debt	660,920	663,555
Senior Notes
Debt Instrument [Line Items]
Long-term debt	$ 791,608	$ 790,798

Debt - Maturity of Debt (Detail

Debt - Maturity of Debt (Details) $ in Thousands	Sep. 30, 2015USD ($)
Long-term Debt, Fiscal Year Maturity [Abstract]
Remainder of 2015	$ 1,698
2,016	6,792
2,017	6,792
2,018	6,792
2,019	653,531
2020 and beyond	800,000
Long-term Debt	1,475,605
Less: Current portion	6,790
Long-term debt, excluding current maturities	$ 1,468,815

Segment Reporting - Schedule of

Segment Reporting - Schedule of Segment Reporting Information, by Segment (Details) $ in Thousands	3 Months Ended		9 Months Ended
	Sep. 30, 2015USD ($)	Sep. 30, 2014USD ($)	Sep. 30, 2015USD ($)segment	Sep. 30, 2014USD ($)
Segment Reporting Information [Line Items]
Number of reportable segments | segment			4
Revenue	$ 437,279	$ 462,128	$ 888,019	$ 918,444
Adjusted EBITDA	268,822	265,806	285,284	269,428
MHGE Higher Education
Segment Reporting Information [Line Items]
Adjusted EBITDA	234,603	222,341	245,953	218,892
MHGE Professional
Segment Reporting Information [Line Items]
Adjusted EBITDA	7,267	9,262	16,108	22,298
MHGE International
Segment Reporting Information [Line Items]
Adjusted EBITDA	24,206	32,309	20,270	28,557
MHGE Other
Segment Reporting Information [Line Items]
Adjusted EBITDA	2,746	1,894	2,953	(319)
Operating Segments
Segment Reporting Information [Line Items]
Revenue	516,640	527,663	929,135	941,378
Operating Segments | MHGE Higher Education
Segment Reporting Information [Line Items]
Revenue	386,183	382,753	630,031	612,194
Operating Segments | MHGE Professional
Segment Reporting Information [Line Items]
Revenue	30,241	30,593	82,316	87,587
Operating Segments | MHGE International
Segment Reporting Information [Line Items]
Revenue	100,155	114,109	216,727	241,389
Operating Segments | MHGE Other
Segment Reporting Information [Line Items]
Revenue	61	208	61	208
Change in deferred revenue
Segment Reporting Information [Line Items]
Revenue	$ (79,361)	$ (65,535)	$ (41,116)	$ (22,934)

Segment Reporting - Reconciliat

Segment Reporting - Reconciliation of Operating Profit (loss) from Segments to Consolidated (Details) - USD ($) $ in Thousands	3 Months Ended		9 Months Ended
	Sep. 30, 2015	Sep. 30, 2014	Sep. 30, 2015	Sep. 30, 2014
Segment Reporting [Abstract]
Adjusted EBITDA	$ 268,822	$ 265,806	$ 285,284	$ 269,428
Interest (expense) income, net	(31,936)	(35,466)	(98,233)	(115,612)
Benefit (provision) for taxes on income	(38,610)	(13,186)	(12,740)	5,753
Depreciation, amortization and pre-publication investment amortization	(52,532)	(49,634)	(130,848)	(136,009)
Change in deferred revenue	(79,361)	(65,535)	(41,116)	(22,934)
Restructuring and cost savings implementation charges	(2,724)	(3,136)	(12,346)	(17,426)
Sponsor fees	(875)	(875)	(2,625)	(2,625)
Purchase accounting	0	0	0	2,600
Transaction costs	0	(162)	0	(3,583)
Acquisition costs	0	(205)	0	(2,855)
Physical separation costs	0	7,833	0	18,941
Other	(2,164)	(5,641)	(2,402)	(6,969)
Pre-publication investment cash costs	12,729	13,060	30,921	35,335
Net (loss) income	73,349	97,193	15,895	(13,838)
Less: Net (income) loss attributable to noncontrolling interests	0	0	0	299
Net (loss) income attributable to McGraw-Hill Global Education Intermediate Holdings, LLC	$ 73,349	$ 97,193	$ 15,895	$ (13,539)

Segment Reporting - Schedule 62

Segment Reporting - Schedule of Revenue and Long-Lived Assets by Geographical Areas (Details) - USD ($) $ in Thousands	3 Months Ended		9 Months Ended
	Sep. 30, 2015	Sep. 30, 2014	Sep. 30, 2015	Sep. 30, 2014	Dec. 31, 2014
Revenues from External Customers and Long-Lived Assets [Line Items]
Revenue	$ 437,279	$ 462,128	$ 888,019	$ 918,444
Long-lived assets	211,031		211,031		$ 211,412
United States
Revenues from External Customers and Long-Lived Assets [Line Items]
Revenue	343,327	356,986	668,626	679,076
Long-lived assets	176,588		176,588		191,745
International
Revenues from External Customers and Long-Lived Assets [Line Items]
Revenue	93,952	$ 105,142	219,393	$ 239,368
Long-lived assets	$ 34,443		$ 34,443		$ 19,667

Taxes on Income - Narrative (De

Taxes on Income - Narrative (Details) - USD ($) $ in Thousands	3 Months Ended		9 Months Ended
	Sep. 30, 2015	Sep. 30, 2014	Sep. 30, 2015	Sep. 30, 2014	Dec. 31, 2014
Income Tax [Line Items]
Effective income tax rate	34.50%	11.90%	44.50%	29.40%
Unrecognized tax benefits	$ 422		$ 422		$ 1,164
Penalties and interest accrued	780		780		1,158
Foreign Tax Authority | Other noncurrent assets
Income Tax [Line Items]
Indemnification receivable	$ 1,202		$ 1,202		$ 1,825

Stock-Based Compensation - Narr

Stock-Based Compensation - Narrative (Details) - USD ($) $ / shares in Units, $ in Thousands	3 Months Ended		9 Months Ended
	Sep. 30, 2015	Sep. 30, 2014	Sep. 30, 2015
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Compensation costs not yet recognized	$ 19,801	$ 23,685	$ 19,801
Compensation cost not yet recognized, period for recognition			2 years 6 months 7 days
Georgia Holdings | Management Equity Plan
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Options granted (in shares)	0	6,250
Weighted average grant date fair value of options (in dollars per share)			$ 68.51
Georgia Holdings | Stock Options | Management Equity Plan
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Award vesting period			5 years
Georgia Holdings | Stock Options | Management Equity Plan | Vesting on cumulative financial performance
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Award vesting measurement, percentage			50.00%
Georgia Holdings | Stock Options | Management Equity Plan | Vesting evenly over five years
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Award vesting measurement, percentage			50.00%
Georgia Holdings | Restricted Stock | Management Equity Plan
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Restricted stock units issued	234,000	22,007,000

Stock-Based Compensation - Sche

Stock-Based Compensation - Schedule of Stock-based Compensation Expense (Details) - USD ($) $ in Thousands	3 Months Ended		9 Months Ended
	Sep. 30, 2015	Sep. 30, 2014	Sep. 30, 2015	Sep. 30, 2014
Share-based Compensation Arrangement by Share-based Payment Award, Compensation Cost [Line Items]
Total stock-based compensation expense	$ 3,220	$ 1,615	$ 7,357	$ 5,164
Stock option expense
Share-based Compensation Arrangement by Share-based Payment Award, Compensation Cost [Line Items]
Total stock-based compensation expense	2,379	1,024	4,766	3,428
Restricted stock and unit awards expense
Share-based Compensation Arrangement by Share-based Payment Award, Compensation Cost [Line Items]
Total stock-based compensation expense	$ 841	$ 591	$ 2,591	$ 1,736

Restructuring - Narrative (Deta

Restructuring - Narrative (Details) $ in Thousands	3 Months Ended
	Dec. 31, 2015USD ($)
Forecast
Restructuring Cost and Reserve [Line Items]
Payments for restructuring	$ 3,688

Restructuring - Restructuring I

Restructuring - Restructuring Information by Reporting Segment (Details) $ in Thousands	9 Months Ended
	Sep. 30, 2015USD ($)
Restructuring Reserve [Roll Forward]
Balance at December 31, 2014	$ 18,572
Balance at September 30, 2015	3,688
Employee severance and other personal benefits
Restructuring Reserve [Roll Forward]
Restructuring charges	1,668
Payments for restructuring	(16,552)
Lease termination costs
Restructuring Reserve [Roll Forward]
Restructuring charges	1,515
Payments for restructuring	(1,515)
MHGE Higher Education
Restructuring Reserve [Roll Forward]
Balance at December 31, 2014	11,218
Balance at September 30, 2015	2,208
MHGE Higher Education | Employee severance and other personal benefits
Restructuring Reserve [Roll Forward]
Restructuring charges	1,220
Payments for restructuring	(10,230)
MHGE Higher Education | Lease termination costs
Restructuring Reserve [Roll Forward]
Restructuring charges	0
Payments for restructuring	0
MHGE Professional
Restructuring Reserve [Roll Forward]
Balance at December 31, 2014	1,490
Balance at September 30, 2015	48
MHGE Professional | Employee severance and other personal benefits
Restructuring Reserve [Roll Forward]
Restructuring charges	0
Payments for restructuring	(1,442)
MHGE Professional | Lease termination costs
Restructuring Reserve [Roll Forward]
Restructuring charges	0
Payments for restructuring	0
MHGE International
Restructuring Reserve [Roll Forward]
Balance at December 31, 2014	5,864
Balance at September 30, 2015	1,432
MHGE International | Employee severance and other personal benefits
Restructuring Reserve [Roll Forward]
Restructuring charges	448
Payments for restructuring	(4,880)
MHGE International | Lease termination costs
Restructuring Reserve [Roll Forward]
Restructuring charges	1,515
Payments for restructuring	(1,515)
MHGE Other
Restructuring Reserve [Roll Forward]
Balance at December 31, 2014	0
Balance at September 30, 2015	0
MHGE Other | Employee severance and other personal benefits
Restructuring Reserve [Roll Forward]
Restructuring charges	0
Payments for restructuring	0
MHGE Other | Lease termination costs
Restructuring Reserve [Roll Forward]
Restructuring charges	0
Payments for restructuring	$ 0

Guarantor Financial Informati68

Guarantor Financial Information - Income Statement (Details) - USD ($) $ in Thousands	3 Months Ended		9 Months Ended
	Sep. 30, 2015	Sep. 30, 2014	Sep. 30, 2015	Sep. 30, 2014
Condensed Income Statements, Captions [Line Items]
Revenue	$ 437,279	$ 462,128	$ 888,019	$ 918,444
Cost of goods sold	114,673	126,619	244,560	251,623
Gross profit	322,606	335,509	643,459	666,821
Operating expenses
Operating & administration expenses	150,295	166,469	436,315	488,406
Depreciation	6,936	2,047	19,477	10,958
Amortization of intangibles	22,755	22,261	69,403	79,007
Transaction costs	0	162	0	3,583
Total operating expenses	179,986	190,939	525,195	581,954
Operating (loss) income	142,620	144,570	118,264	84,867
Interest expense (income), net	31,936	35,466	98,233	115,612
Equity in (income) loss of subsidiaries	0	0	0	0
Other (income)	(1,275)	(1,275)	(8,604)	(11,154)
(Loss) income from operations before taxes on income	111,959	110,379	28,635	(19,591)
Income tax (benefit) provision	38,610	13,186	12,740	(5,753)
Net (loss) income	73,349	97,193	15,895	(13,838)
Less: Net (income) loss attributable to noncontrolling interests	0	0	0	299
Net (loss) income attributable to McGraw-Hill Global Education Intermediate Holdings, LLC	73,349	97,193	15,895	(13,539)
Comprehensive (loss) income attributable to McGraw-Hill Global Education Intermediate Holdings, LLC	65,782	85,613	3,290	(15,845)
Eliminations
Condensed Income Statements, Captions [Line Items]
Revenue	0	0	0	0
Cost of goods sold	0	0	0	0
Gross profit	0	0	0	0
Operating expenses
Operating & administration expenses	238	2,300	(52)	(685)
Depreciation	0	0	0	0
Amortization of intangibles	0	0	0	0
Transaction costs		0		0
Total operating expenses	238	2,300	(52)	(685)
Operating (loss) income	(238)	(2,300)	52	685
Interest expense (income), net	0	0	0	0
Equity in (income) loss of subsidiaries	144,715	146,967	128,957	102,792
Other (income)	0	0	0	0
(Loss) income from operations before taxes on income	(144,953)	(149,267)	(128,905)	(102,107)
Income tax (benefit) provision	(73,290)	(21,288)	(67,070)	(16,787)
Net (loss) income	(71,663)	(127,979)	(61,835)	(85,320)
Less: Net (income) loss attributable to noncontrolling interests		0		0
Net (loss) income attributable to McGraw-Hill Global Education Intermediate Holdings, LLC		(127,979)		(85,320)
Comprehensive (loss) income attributable to McGraw-Hill Global Education Intermediate Holdings, LLC	(71,663)	(127,979)	(61,835)	(85,320)
MHGE Intermediate
Condensed Income Statements, Captions [Line Items]
Revenue	0	0	0	0
Cost of goods sold	0	0	0	0
Gross profit	0	0	0	0
Operating expenses
Operating & administration expenses	875	875	2,625	2,625
Depreciation	0	0	0	0
Amortization of intangibles	0	0	0	0
Transaction costs		162		3,583
Total operating expenses	875	1,037	2,625	6,208
Operating (loss) income	(875)	(1,037)	(2,625)	(6,208)
Interest expense (income), net	31,881	35,551	97,696	115,876
Equity in (income) loss of subsidiaries	(144,715)	(146,967)	(128,957)	(102,792)
Other (income)	0	0	0	0
(Loss) income from operations before taxes on income	111,959	110,379	28,636	(19,292)
Income tax (benefit) provision	38,610	13,186	12,741	(5,753)
Net (loss) income	73,349	97,193	15,895	(13,539)
Less: Net (income) loss attributable to noncontrolling interests		0		0
Net (loss) income attributable to McGraw-Hill Global Education Intermediate Holdings, LLC		97,193		(13,539)
Comprehensive (loss) income attributable to McGraw-Hill Global Education Intermediate Holdings, LLC	73,349	97,193	15,895	(13,539)
Guarantor Subsidiaries
Condensed Income Statements, Captions [Line Items]
Revenue	343,327	353,288	675,319	680,746
Cost of goods sold	75,621	82,510	152,465	153,892
Gross profit	267,706	270,778	522,854	526,854
Operating expenses
Operating & administration expenses	109,466	118,061	311,862	350,981
Depreciation	6,876	1,380	19,365	8,308
Amortization of intangibles	21,098	20,242	64,398	82,631
Transaction costs		0		0
Total operating expenses	137,440	139,683	395,625	441,920
Operating (loss) income	130,266	131,095	127,229	84,934
Interest expense (income), net	0	0	0	0
Equity in (income) loss of subsidiaries	0	0	0	0
Other (income)	(1,275)	(1,275)	(8,604)	(11,154)
(Loss) income from operations before taxes on income	131,541	132,370	135,833	96,088
Income tax (benefit) provision	69,465	15,813	68,847	14,839
Net (loss) income	62,076	116,557	66,986	81,249
Less: Net (income) loss attributable to noncontrolling interests		0		0
Net (loss) income attributable to McGraw-Hill Global Education Intermediate Holdings, LLC		116,557		81,249
Comprehensive (loss) income attributable to McGraw-Hill Global Education Intermediate Holdings, LLC	62,076	116,557	66,986	81,249
Non-Guarantor Subsidiaries
Condensed Income Statements, Captions [Line Items]
Revenue	93,952	108,840	212,700	237,698
Cost of goods sold	39,052	44,109	92,095	97,731
Gross profit	54,900	64,731	120,605	139,967
Operating expenses
Operating & administration expenses	39,716	45,233	121,880	135,485
Depreciation	60	667	112	2,650
Amortization of intangibles	1,657	2,019	5,005	(3,624)
Transaction costs		0		0
Total operating expenses	41,433	47,919	126,997	134,511
Operating (loss) income	13,467	16,812	(6,392)	5,456
Interest expense (income), net	$ 55	(85)	537	(264)
Equity in (income) loss of subsidiaries		0	0	0
Other (income)	$ 0	0	0	0
(Loss) income from operations before taxes on income	13,412	16,897	(6,929)	5,720
Income tax (benefit) provision	3,825	5,475	(1,778)	1,948
Net (loss) income	9,587	11,422	(5,151)	3,772
Less: Net (income) loss attributable to noncontrolling interests		0		299
Net (loss) income attributable to McGraw-Hill Global Education Intermediate Holdings, LLC		11,422		4,071
Comprehensive (loss) income attributable to McGraw-Hill Global Education Intermediate Holdings, LLC	$ 2,020	$ (158)	$ (17,756)	$ 1,765

Guarantor Financial Informati69

Guarantor Financial Information - Balance Sheet (Details) - USD ($)	Sep. 30, 2015	Dec. 31, 2014	Sep. 30, 2014	Dec. 31, 2013	Mar. 22, 2013
Current assets
Cash and equivalents	$ 194,950,000	$ 232,098,000	$ 147,034,000	$ 253,390,000
Accounts receivable	254,097,000	204,072,000
Due from related party	7,230,000	0
Inventories, net	74,188,000	76,992,000
Deferred income taxes	30,658,000	31,538,000
Prepaid and other current assets	40,540,000	30,710,000
Total current assets	601,663,000	575,410,000
Pre-publication costs, net	68,399,000	80,980,000
Property, plant and equipment, net	92,204,000	91,926,000
Goodwill	474,251,000	477,324,000
Other intangible assets, net	834,674,000	906,665,000
Investments	6,586,000	9,219,000
Deferred income taxes non-current	35,170,000	43,440,000
Other non-current assets	108,158,000	101,510,000
Total assets	2,221,105,000	2,286,474,000
Current liabilities
Accounts payable	116,089,000	130,465,000
Accrued royalties	40,334,000	101,827,000
Accrued compensation and contributions to retirement plans	41,369,000	66,243,000
Deferred revenue	186,721,000	124,551,000
Current portion of long-term debt	6,790,000	6,880,000
Related party	0	889,000
Other current liabilities	103,874,000	89,160,000
Total current liabilities	495,177,000	520,015,000
Long-term debt	1,445,738,000	1,447,473,000
Deferred income taxes	7,993,000	8,288,000
Other non-current liabilities	39,466,000	48,839,000
Total liabilities	$ 1,988,374,000	$ 2,024,615,000
Commitments and contingencies
Equity
Member's equity	$ 338,463,000	$ 370,881,000
Accumulated deficit	(66,242,000)	(82,137,000)
Accumulated other comprehensive loss	(39,490,000)	(26,885,000)
Total equity	232,731,000	261,859,000
Total liabilities and equity	2,221,105,000	2,286,474,000
Eliminations
Current assets
Cash and equivalents	(359,392,000)	(284,256,000)	(229,790,000)	(116,024,000)
Accounts receivable	0	0
Due from related party	(254,321,000)	(253,071,000)
Inventories, net	52,000	(502,000)
Deferred income taxes	0	0
Prepaid and other current assets	(60,091,000)	(72,828,000)
Total current assets	(673,752,000)	(610,657,000)
Pre-publication costs, net	0	0
Property, plant and equipment, net	0	0
Goodwill	0	0
Other intangible assets, net	0	0
Investments	(1,970,996,000)	(1,842,551,000)
Deferred income taxes non-current	0	0
Other non-current assets	0	0
Total assets	(2,644,748,000)	(2,453,208,000)
Current liabilities
Accounts payable	(359,392,000)	(284,256,000)
Accrued royalties	0	0
Accrued compensation and contributions to retirement plans	0	0
Deferred revenue	0	0
Current portion of long-term debt	0	0
Related party	(254,319,000)	(253,071,000)
Other current liabilities	(60,084,000)	(72,828,000)
Total current liabilities	(673,795,000)	(610,155,000)
Long-term debt	0	0
Deferred income taxes	0	0
Other non-current liabilities	0	0
Total liabilities	$ (673,795,000)	$ (610,155,000)
Commitments and contingencies
Equity
Member's equity	$ (1,812,285,000)	$ (1,746,220,000)
Accumulated deficit	(158,668,000)	(96,833,000)
Accumulated other comprehensive loss	0	0
Total equity	(1,970,953,000)	(1,843,053,000)
Total liabilities and equity	(2,644,748,000)	(2,453,208,000)
MHGE Intermediate
Current assets
Cash and equivalents	0	0	0	0
Accounts receivable	0	0
Due from related party	0	0
Inventories, net	0	0
Deferred income taxes	0	0
Prepaid and other current assets	62,715,000	74,577,000
Total current assets	62,715,000	74,577,000
Pre-publication costs, net	0	0
Property, plant and equipment, net	0	0
Goodwill	0	0
Other intangible assets, net	0	0
Investments	1,970,996,000	1,842,551,000
Deferred income taxes non-current	0	0
Other non-current assets	57,368,000	63,004,000
Total assets	2,091,079,000	1,980,132,000
Current liabilities
Accounts payable	362,017,000	284,256,000
Accrued royalties	0	0
Accrued compensation and contributions to retirement plans	0	0
Deferred revenue	0	0
Current portion of long-term debt	6,790,000	6,880,000
Related party	0	0
Other current liabilities	50,302,000	31,186,000
Total current liabilities	419,109,000	322,322,000
Long-term debt	1,445,738,000	1,447,473,000
Deferred income taxes	0	0
Other non-current liabilities	0	0
Total liabilities	$ 1,864,847,000	$ 1,769,795,000
Commitments and contingencies
Equity
Member's equity	$ 292,474,000	$ 292,474,000
Accumulated deficit	(66,242,000)	(82,137,000)
Accumulated other comprehensive loss	0	0
Total equity	226,232,000	210,337,000
Total liabilities and equity	2,091,079,000	1,980,132,000
Guarantor Subsidiaries
Current assets
Cash and equivalents	495,767,000	466,617,000	321,312,000	301,985,000
Accounts receivable	165,573,000	122,047,000
Due from related party	261,551,000	253,071,000
Inventories, net	48,403,000	50,330,000
Deferred income taxes	22,745,000	22,745,000
Prepaid and other current assets	22,113,000	11,925,000
Total current assets	1,016,152,000	926,735,000
Pre-publication costs, net	55,478,000	63,130,000
Property, plant and equipment, net	90,214,000	91,926,000
Goodwill	425,307,000	423,629,000
Other intangible assets, net	778,739,000	842,907,000
Investments	102,000	104,000
Deferred income taxes non-current	33,639,000	42,242,000
Other non-current assets	49,153,000	36,689,000
Total assets	2,448,784,000	2,427,362,000
Current liabilities
Accounts payable	102,519,000	115,594,000
Accrued royalties	32,012,000	89,796,000
Accrued compensation and contributions to retirement plans	30,003,000	50,615,000
Deferred revenue	175,463,000	117,211,000
Current portion of long-term debt	0	0
Related party	619,000	889,000
Other current liabilities	92,571,000	98,036,000
Total current liabilities	433,187,000	472,141,000
Long-term debt	0	0
Deferred income taxes	0	0
Other non-current liabilities	36,496,000	45,244,000
Total liabilities	$ 469,683,000	$ 517,385,000
Commitments and contingencies
Equity
Member's equity	$ 1,811,369,000	$ 1,809,231,000
Accumulated deficit	167,732,000	100,746,000
Accumulated other comprehensive loss	0	0
Total equity	1,979,101,000	1,909,977,000
Total liabilities and equity	2,448,784,000	2,427,362,000
Non-Guarantor Subsidiaries
Current assets
Cash and equivalents	58,575,000	49,737,000	$ 55,512,000	$ 67,429,000
Accounts receivable	88,524,000	82,025,000
Due from related party	0	0
Inventories, net	25,733,000	27,164,000
Deferred income taxes	7,913,000	8,793,000
Prepaid and other current assets	15,803,000	17,036,000
Total current assets	196,548,000	184,755,000
Pre-publication costs, net	12,921,000	17,850,000
Property, plant and equipment, net	1,990,000	0
Goodwill	48,944,000	53,695,000
Other intangible assets, net	55,935,000	63,758,000
Investments	6,484,000	9,115,000
Deferred income taxes non-current	1,531,000	1,198,000
Other non-current assets	1,637,000	1,817,000
Total assets	325,990,000	332,188,000
Current liabilities
Accounts payable	10,945,000	14,871,000
Accrued royalties	8,322,000	12,031,000
Accrued compensation and contributions to retirement plans	11,366,000	15,628,000
Deferred revenue	11,258,000	7,340,000
Current portion of long-term debt	0	0
Related party	253,700,000	253,071,000
Other current liabilities	21,085,000	32,766,000
Total current liabilities	316,676,000	335,707,000
Long-term debt	0	0
Deferred income taxes	7,993,000	8,288,000
Other non-current liabilities	2,970,000	3,595,000
Total liabilities	$ 327,639,000	$ 347,590,000
Commitments and contingencies
Equity
Member's equity	$ 46,905,000	$ 15,396,000
Accumulated deficit	(9,064,000)	(3,913,000)
Accumulated other comprehensive loss	(39,490,000)	(26,885,000)
Total equity	(1,649,000)	(15,402,000)
Total liabilities and equity	$ 325,990,000	$ 332,188,000
Senior Notes | 9.75% First-Priority Senior Secured Notes due 2021
Condensed Balance Sheet Statements, Captions [Line Items]
Debt, face amount					$ 800,000,000

Guarantor Financial Informati70

Guarantor Financial Information - Cash Flow (Details) - USD ($) $ in Thousands	9 Months Ended
	Sep. 30, 2015	Sep. 30, 2014
Operating activities
Cash provided by operating activities	$ 67,817	$ 82,612
Investing activities
Investment in pre-publication costs	(30,921)	(35,335)
Capital expenditures	(30,969)	(15,317)
Acquisitions	(6,879)	(56,453)
Proceeds from sale of investments	12,500	3,304
Proceeds from dispositions	81	8,882
Cash provided by (used for) investing activities	(56,188)	(94,919)
Financing activities
Payment of term loan	(5,440)	(40,160)
Dividend payment to MHGE Parent	(39,822)	0
Dividends on restricted stock unit	(300)	0
Payment of deferred purchase price	0	(53,500)
Dividends paid to noncontrolling interests	0	(169)
Cash provided by (used for) financing activities	(45,562)	(93,829)
Effect of exchange rate changes on cash	(3,215)	(220)
Net change in cash and cash equivalents	(37,148)	(106,356)
Cash and cash equivalents at the beginning of the period	232,098	253,390
Cash and cash equivalents, ending balance	194,950	147,034
Eliminations
Operating activities
Cash provided by operating activities	(75,136)	(113,766)
Investing activities
Investment in pre-publication costs	0	0
Capital expenditures	0	0
Acquisitions		0
Proceeds from sale of investments	0	0
Proceeds from dispositions	0	0
Cash provided by (used for) investing activities	0	0
Financing activities
Payment of term loan	0	0
Dividend payment to MHGE Parent	0
Dividends on restricted stock unit	0
Payment of deferred purchase price		0
Dividends paid to noncontrolling interests		0
Cash provided by (used for) financing activities	0	0
Effect of exchange rate changes on cash	0	0
Net change in cash and cash equivalents	(75,136)	(113,766)
Cash and cash equivalents at the beginning of the period	(284,256)	(116,024)
Cash and cash equivalents, ending balance	(359,392)	(229,790)
MHGE Intermediate
Operating activities
Cash provided by operating activities	5,440	40,160
Investing activities
Investment in pre-publication costs	0	0
Capital expenditures	0	0
Acquisitions	0	0
Proceeds from sale of investments	0	0
Proceeds from dispositions	0	0
Cash provided by (used for) investing activities	0	0
Financing activities
Payment of term loan	(5,440)	(40,160)
Dividend payment to MHGE Parent	0
Dividends on restricted stock unit	0
Payment of deferred purchase price		0
Dividends paid to noncontrolling interests		0
Cash provided by (used for) financing activities	(5,440)	(40,160)
Effect of exchange rate changes on cash	0	0
Net change in cash and cash equivalents	0	0
Cash and cash equivalents at the beginning of the period	0	0
Cash and cash equivalents, ending balance	0	0
Guarantor Subsidiaries
Operating activities
Cash provided by operating activities	114,154	114,915
Investing activities
Investment in pre-publication costs	(27,103)	(28,794)
Capital expenditures	(30,360)	(13,365)
Acquisitions	0	0
Proceeds from sale of investments	12,500	54
Proceeds from dispositions	81	17
Cash provided by (used for) investing activities	(44,882)	(42,088)
Financing activities
Payment of term loan	0	0
Dividend payment to MHGE Parent	(39,822)
Dividends on restricted stock unit	(300)
Payment of deferred purchase price		(53,500)
Dividends paid to noncontrolling interests		0
Cash provided by (used for) financing activities	(40,122)	(53,500)
Effect of exchange rate changes on cash	0	0
Net change in cash and cash equivalents	29,150	19,327
Cash and cash equivalents at the beginning of the period	466,617	301,985
Cash and cash equivalents, ending balance	495,767	321,312
Non-Guarantor Subsidiaries
Operating activities
Cash provided by operating activities	23,359	41,303
Investing activities
Investment in pre-publication costs	(3,818)	(6,541)
Capital expenditures	(609)	(1,952)
Acquisitions	(6,879)	(56,453)
Proceeds from sale of investments	0	3,250
Proceeds from dispositions	0	8,865
Cash provided by (used for) investing activities	(11,306)	(52,831)
Financing activities
Payment of term loan	0	0
Dividend payment to MHGE Parent	0
Dividends on restricted stock unit	0
Payment of deferred purchase price		0
Dividends paid to noncontrolling interests		(169)
Cash provided by (used for) financing activities	0	(169)
Effect of exchange rate changes on cash	(3,215)	(220)
Net change in cash and cash equivalents	8,838	(11,917)
Cash and cash equivalents at the beginning of the period	49,737	67,429
Cash and cash equivalents, ending balance	58,575	$ 55,512
Eliminations
Investing activities
Acquisitions	$ 0

Transactions with Sponsors (Det

Transactions with Sponsors (Details) - USD ($)	3 Months Ended		9 Months Ended
	Sep. 30, 2015	Sep. 30, 2014	Sep. 30, 2015	Sep. 30, 2014	Dec. 31, 2013
Related Party Transaction [Line Items]
Sponsor fees	$ 875,000	$ 875,000	$ 2,625,000	$ 2,625,000
MHGE Holdings | Apollo Management VII, L. P.
Related Party Transaction [Line Items]
Annual management fee	3,500,000		3,500,000
Sponsor fees	$ 875,000	$ 875,000	$ 2,625,000	$ 2,625,000
MHGE Holdings | Apollo Management VII, L. P. | Services for Structuring the Founding Transactions
Related Party Transaction [Line Items]
Expenses from transactions with related party					$ 25,000,000
MHGE Holdings | Apollo Management VII, L. P. | Financial Advisory Services
Related Party Transaction [Line Items]
Related party transaction rate			1.00%

Related Party Transactions - Na

Related Party Transactions - Narrative (Details) - USD ($)

May. 04, 2015

Apr. 03, 2015

Feb. 02, 2015

Mar. 24, 2014

Aug. 01, 2013

Mar. 22, 2013

Sep. 30, 2014

Sep. 30, 2015

Sep. 30, 2014

Dec. 31, 2014

Apr. 06, 2015

Jul. 17, 2014

Related Party Transaction [Line Items]

Payment of acquisition costs on behalf of parent

$ 28,672,000

Line of Credit

Related Party Transaction [Line Items]

Aggregate principal term loan

$ 660,920,000

$ 663,555,000

MHGE Parent | Payment in Kind (PIK) Note | Senior PIK Toggle Notes due 2019

Related Party Transaction [Line Items]

Aggregate principal amount senior notes

$ 100,000,000

$ 400,000,000

Debt discount percentage

1.00%

Debt, stated interest rate

8.50%

Debt, payment in kind interest percentage

9.25%

Debt, semi-annual interest payment

$ 21,500,000

$ 18,322,000

Debt, percentage of semi-annual interest due utilizing payment in kind, minimum

0.00%

Debt, percentage of semi-annual interest due utilizing payment in kind, midpoint

50.00%

Debt, percentage of semi-annual interest due utilizing payment in kind, maximum

100.00%

MHC | Service Charges and Allocations and Transaction Services

Related Party Transaction [Line Items]

Expenses from transactions with related party

$ 693,000

$ 2,675,000

MHSE Holdings | Reseller Agreement with Exclusivity Provision | ALEKS Corporation

Related Party Transaction [Line Items]

Reseller agreement, proceeds from exclusivity fee

$ 25,500,000

Reseller agreement, period of revenue recognition

5 years

Proceeds from royalties advance received

$ 12,500,000

Royalty proceeds rate, percent of net sales

15.00%

Spouse of David Levin, President and Chief Executive Officer | Leadership Workshops

Related Party Transaction [Line Items]

Expenses from transactions with related party

$ 293,000

$ 133,000

Term Loan Facility | Credit Suisse AG | Line of Credit

Related Party Transaction [Line Items]

Debt discount percentage

3.00%

Debt discount, quarterly amortization rate

0.25%

0.25%

Term Loan Facility | Credit Suisse AG | MHGE Parent | Line of Credit

Related Party Transaction [Line Items]

Line of credit, voluntary payment, principal

$ 325,000

$ 35,000,000

Aggregate principal term loan

679,000,000

687,925,000

Line of credit, periodic payment, principal

$ 1,698,000

$ 1,720,000

$ 2,025,000

Debt discount, quarterly amortization rate

0.25%

London Interbank Offered Rate (LIBOR) | Term Loan Facility | Credit Suisse AG | MHGE Parent | Line of Credit

Related Party Transaction [Line Items]

LIBOR margin

3.75%

4.75%

7.75%

LIBOR floor

1.00%

1.00%

1.25%

ALEKS Corporation | MHSE Holdings | Reseller Agreement with Exclusivity Provision

Related Party Transaction [Line Items]

Reseller agreement, period of revenue recognition

5 years

Supplemental Parent Company E73

Supplemental Parent Company Equity Information (Details) - USD ($) $ in Thousands	3 Months Ended		9 Months Ended		12 Months Ended
	Sep. 30, 2015	Sep. 30, 2014	Sep. 30, 2015	Sep. 30, 2014	Dec. 31, 2014
Increase (Decrease) in Stockholders' Equity [Roll Forward]
Beginning balance			$ 261,859	$ 223,268	$ 223,268
Comprehensive loss, net of tax	$ 65,782	$ 85,613	3,290	(16,144)	(13,537)
Capital contribution					42,500
Georgia Holdings shares for acquisition earn out					8,500
Acquisition of non-controlling interest					(27,450)
Stock-based compensation			7,357		7,288
Dividend on restricted stock units			(712)		(1,189)
Non-cash capital contribution (distribution)			39,063		22,648
Dividends paid to non-controlling interests					(169)
Ending balance	232,731		232,731		261,859
Parent
Increase (Decrease) in Stockholders' Equity [Roll Forward]
Beginning balance			261,859	199,778	199,778
Comprehensive loss, net of tax			3,290		(12,851)
Capital contribution					42,500
Georgia Holdings shares for acquisition earn out					8,500
Acquisition of non-controlling interest					(4,815)
Stock-based compensation			7,357		7,288
Dividend on restricted stock units			(712)		(1,189)
Non-cash capital contribution (distribution)			39,063		22,648
Ending balance	232,731		232,731		261,859
Noncontrolling Interest
Increase (Decrease) in Stockholders' Equity [Roll Forward]
Beginning balance			0	$ 23,490	23,490
Comprehensive loss, net of tax					(686)
Acquisition of non-controlling interest					(22,635)
Dividends paid to non-controlling interests					(169)
Ending balance	$ 0		$ 0		$ 0