Discontinued Operations

12 Months Ended

Dec. 31, 2012

Discontinued Operations [Abstract]

Discontinued Operations [Text Block]

3. DISCONTINUED OPERATIONS

In August 2012, the Company completed the sale of Kidum and recorded a pre-tax gain of $3.6 million and an after-tax gain of $10.2 million related to this sale in the third quarter of 2012. On July 31, 2012, the Company disposed of its interest in Avenue100 Media Solutions, Inc. and recorded a pre-tax loss of $5.7 million related to the disposition. An income tax benefit of $44.5 million was also recorded in the third quarter of 2012 as the Company determined that Avenue100 had no value. The income tax benefit was due to the Company's tax basis in the stock of Avenue100 exceeding its net book value, as a result of goodwill and other intangible asset impairment charges recorded in 2008, 2010 and 2011 for which no tax benefit was previously recorded. In April 2012, the Company completed the sale of Kaplan EduNeering. Under the terms of the agreement, the purchaser acquired the stock of EduNeering and received substantially all the assets and liabilities. In the second quarter of 2012, the Company recorded an after-tax gain of $18.5 million related to this sale. In February 2012, Kaplan completed the stock sale of Kaplan Learning Technologies (KLT) and recorded an after-tax loss on the sale of $1.9 million. The Company recorded $23.2 million of income tax benefits in the first quarter of 2012 in connection with the sale of its stock in EduNeering and KLT related to the excess of the outside stock tax basis over the net book value of the net assets disposed. This activity is included in Income (Loss) from Discontinued Operations, Net of Tax in the Company's Consolidated Statement of Operations for the fiscal year ended December 31, 2012.

In October 2011, Kaplan completed the sale of Kaplan Compliance Solutions (KCS). Under the terms of the asset purchase agreement, the buyer received KCS'snet working capital, tangible and intangible assets and assumed certain liabilities. The Company recorded an after-tax gain on the transaction of $1.5 million. In July 2011, Kaplan completed the sale of Kaplan Virtual Education (KVE). Under the terms of the asset purchase agreement, the buyer received KVE's intellectual property, education programs and selected other long-lived assets. The Company recorded an after-tax loss on the transaction of $1.2million. This activity is included in Income (Loss) from Discontinued Operations, Net of Tax in the Company's Consolidated Statement of Operations for fiscal year 2011.

In April 2010, Kaplan completed the sale of Education Connection and in September 2010, the Company completed the sale of Newsweek magazine. Newsweekemployees were participants in The Washington Post Company Retirement Plan, and the Company had historically allocated Newsweek a net pension credit for segment reporting purposes. Since the associated pension assets and liabilities were retained by the Company, the associated pension credit of $25.8 million for fiscal year 2010 has been excluded from the reclassification of Newsweek results to discontinued operations. In 2010, Newsweek recorded $4.7 millionin accelerated depreciation and property, plant and equipment write-downs in anticipation of the sale.

The results of operations of Kidum, Avenue100, Kaplan EduNeering, KLT, KCS, KVE, Education Connection and the magazine publishing division for 2012, 2011 and 2010, where applicable, are included in the Company's Consolidated Statements of Operations as Income (Loss) from Discontinued Operations, Net of Tax. All corresponding prior period operating results presented in the Company's Consolidated Financial Statements and the accompanying notes have been reclassified to reflect the discontinued operations presented. The Company did not reclassify its Consolidated Statements of Cash Flows or prior year Consolidated Balance Sheet to reflect the discontinued operations.

The summarized income (loss) from discontinued operations, net of tax, for the years ended December 31, 2012 and 2011 and January 2, 2011 is presented below:

(in thousands)	2012		2011		2010
Operating revenues	$	35,342	$	118,457	$	231,388
Operating costs and expenses		(42,583)		(155,720)		(315,031)
Loss from discontinued operations		(7,241)		(37,263)		(83,643)
Benefit from income taxes		(2,068)		(8,433)		(20,769)
Net Loss from Discontinued Operations		(5,173)		(28,830)		(62,874)
Gain (loss) on sales and disposition of discontinued operations		23,759		2,975		(9,156)
(Benefit) provision for income taxes on sales and disposition of discontinued operations		(64,591)		2,616		5,869
Income (Loss) from Discontinued Operations, Net of Tax	$	83,177	$	(28,471)	$	(77,899)