Business Segments

6 Months Ended

Jun. 30, 2014

Segment Reporting [Abstract]

Business Segments

BUSINESS SEGMENTS

The Company has six reportable segments: Kaplan Higher Education, Kaplan Test Preparation, Kaplan International, cable, television broadcasting and other businesses.

Television Broadcasting. In June 2014, the Company completed the sale of WPLG, a television station serving the Miami market. WPLG results are included in discontinued operations, net of tax, for all periods presented. The television broadcasting segment operating results have been restated to reflect this change.

The following table summarizes financial information related to each of the Company’s business segments:

	Three Months Ended						Six Months Ended
	June 30						June 30
(in thousands)	2014			2013			2014			2013
Operating Revenues
Education	$	547,181		$	548,230		$	1,073,355		$	1,076,045
Cable	200,829			204,550			404,750			404,688
Television broadcasting	88,297			80,228			173,948			149,130
Other businesses	42,351			37,572			67,264			61,386
Corporate office	—			—			—			—
Intersegment elimination	(30		)	(76		)	(128		)	(153		)
	$	878,628		$	870,504		$	1,719,189		$	1,691,096
Income (Loss) From Operations
Education	$	10,561		$	23,726		$	13,083		$	19,670
Cable	46,780			44,710			87,942			81,323
Television broadcasting	44,088			39,235			88,474			68,346
Other businesses	(6,995		)	(5,968		)	(17,742		)	(14,510		)
Corporate office	50			(5,402		)	2,256			(11,381		)
	$	94,484		$	96,301		$	174,013		$	143,448
Equity in Earnings of Affiliates, Net	91,503			3,868			95,555			7,286
Interest Expense, Net	(7,916		)	(8,526		)	(16,137		)	(16,976		)
Other Income (Expense), Net	268,114			(12,858		)	401,387			(16,941		)
Income from Continuing Operations Before Income Taxes	$	446,185		$	78,785		$	654,818		$	116,817
Depreciation of Property, Plant and Equipment
Education	$	15,400		$	20,064		$	31,844		$	42,652
Cable	33,788			33,964			67,575			67,697
Television broadcasting	2,039			2,214			4,033			4,423
Other businesses	780			577			1,300			1,006
Corporate office	10			60			510			60
	$	52,017		$	56,879		$	105,262		$	115,838
Amortization and Impairment of Intangible Assets
Education	$	9,937		$	2,363		$	12,225		$	4,881
Cable	59			57			94			107
Television broadcasting	—			—			—			—
Other businesses	1,138			893			1,896			2,042
Corporate office	—			—			—			—
	$	11,134		$	3,313		$	14,215		$	7,030
Net Pension (Credit) Expense
Education	$	3,566		$	4,231		$	7,709		$	8,337
Cable	888			913			1,752			1,795
Television broadcasting	358			1,250			678			2,594
Other businesses	202			134			366			250
Corporate office	(22,933		)	(9,129		)	(40,612		)	(18,250		)
	$	(17,919	)	$	(2,601	)	$	(30,107	)	$	(5,274	)

Asset information for the Company’s business segments are as follows:

	As of
(in thousands)	June 30, 2014		December 31, 2013
Identifiable Assets
Education	$	1,743,192	$	1,921,037
Cable television	1,184,320		1,215,320
Television broadcasting	310,948		383,251
Other businesses	311,147		171,539
Corporate office	309,973		371,484
	$	3,859,580	$	4,062,631
Investments in Marketable Equity Securities	117,536		487,156
Investments in Affiliates	21,006		15,754
Prepaid Pension Cost	1,261,294		1,245,505
Assets Held for Sale	30,290		—
Total Assets	$	5,289,706	$	5,811,046

The Company’s education division comprises the following operating segments:

	Three Months Ended						Six Months Ended
	June 30						June 30
(in thousands)	2014			2013			2014			2013
Operating Revenues
Higher education	$	251,936		$	273,092		$	505,715		$	544,952
Test preparation	81,098			85,690			148,902			154,633
Kaplan international	213,262			187,968			416,129			372,781
Kaplan corporate and other	1,385			1,669			3,399			4,273
Intersegment elimination	(500		)	(189		)	(790		)	(594		)
	$	547,181		$	548,230		$	1,073,355		$	1,076,045
Income (Loss) from Operations
Higher education	$	20,952		$	22,534		$	34,096		$	27,635
Test preparation	(3,904		)	7,831			(10,532		)	3,486
Kaplan international	17,960			6,490			28,842			12,887
Kaplan corporate and other	(24,539		)	(13,223		)	(39,459		)	(24,563		)
Intersegment elimination	92			94			136			225
	$	10,561		$	23,726		$	13,083		$	19,670
Depreciation of Property, Plant and Equipment
Higher education	$	7,080		$	10,741		$	14,820		$	24,180
Test preparation	3,072			4,866			6,856			9,624
Kaplan international	4,944			4,116			9,652			8,112
Kaplan corporate and other	304			341			516			736
	$	15,400		$	20,064		$	31,844		$	42,652
Amortization of Intangible Assets	$	2,163		$	2,363		$	4,451		$	4,881
Impairment of Intangible Assets	$	7,774		$	—		$	7,774		$	—
Pension Expense
Higher education	$	2,629		$	2,807		$	5,257		$	5,614
Test preparation	722			641			1,444			1,281
Kaplan international	89			87			178			174
Kaplan corporate and other	126			696			830			1,268
	$	3,566		$	4,231		$	7,709		$	8,337

Identifiable assets for the Company’s education division consist of the following:

	As of
(in thousands)	June 30, 2014		December 31, 2013
Identifiable assets
Higher education	$	633,040	$	859,208
Test preparation	178,361		173,435
Kaplan international	888,559		864,507
Kaplan corporate and other	43,232		23,887
	$	1,743,192	$	1,921,037