FORM 10-Q |
GRAHAM HOLDINGS COMPANY |
(Exact name of registrant as specified in its charter) |
Delaware | 53-0182885 |
(State or other jurisdiction of incorporation or organization) | (I.R.S. Employer Identification No.) |
1300 North 17th Street, Arlington, Virginia | 22209 |
(Address of principal executive offices) | (Zip Code) |
Large accelerated filer | ý | Accelerated filer | ¨ | Non-accelerated filer | ¨ | Smaller reporting company | ¨ |
PART I. FINANCIAL INFORMATION | ||
Item 1. | Financial Statements | |
a. Condensed Consolidated Statements of Operations (Unaudited) for the Three Months Ended March 31, 2016 and 2015 | ||
b. Condensed Consolidated Statements of Comprehensive Income (Unaudited) for the Three Months Ended March 31, 2016 and 2015 | ||
c. Condensed Consolidated Balance Sheets at March 31, 2016 (Unaudited) and December 31, 2015 | ||
d. Condensed Consolidated Statements of Cash Flows (Unaudited) for the Three Months Ended March 31, 2016 and 2015 | ||
e. Notes to Condensed Consolidated Financial Statements (Unaudited) | ||
Item 2. | Management’s Discussion and Analysis of Results of Operations and Financial Condition | |
Item 3. | Quantitative and Qualitative Disclosures about Market Risk | |
Item 4. | Controls and Procedures | |
PART II. OTHER INFORMATION | ||
Item 2. | Unregistered Sales of Equity Securities and Use of Proceeds | |
Item 6. | Exhibits | |
Signatures |
Three Months Ended March 31 | |||||||
(in thousands, except per share amounts) | 2016 | 2015 | |||||
Operating Revenues | |||||||
Education | $ | 401,006 | $ | 500,602 | |||
Advertising | 68,158 | 66,454 | |||||
Other | 132,576 | 80,369 | |||||
601,740 | 647,425 | ||||||
Operating Costs and Expenses | |||||||
Operating | 291,632 | 309,223 | |||||
Selling, general and administrative | 235,213 | 302,405 | |||||
Depreciation of property, plant and equipment | 16,761 | 22,197 | |||||
Amortization of intangible assets | 6,262 | 4,738 | |||||
549,868 | 638,563 | ||||||
Income from Operations | 51,872 | 8,862 | |||||
Equity in earnings (losses) of affiliates, net | 1,004 | (404 | ) | ||||
Interest income | 591 | 559 | |||||
Interest expense | (7,948 | ) | (8,501 | ) | |||
Other income (expense), net | 15,096 | (1,105 | ) | ||||
Income (Loss) from Continuing Operations Before Income Taxes | 60,615 | (589 | ) | ||||
Provision for Income Taxes | 22,400 | 900 | |||||
Income (Loss) from Continuing Operations | 38,215 | (1,489 | ) | ||||
Income from Discontinued Operations, Net of Tax | — | 23,289 | |||||
Net Income | 38,215 | 21,800 | |||||
Net Income Attributable to Noncontrolling Interests | (435 | ) | (774 | ) | |||
Net Income Attributable to Graham Holdings Company | 37,780 | 21,026 | |||||
Redeemable Preferred Stock Dividends | — | (420 | ) | ||||
Net Income Attributable to Graham Holdings Company Common Stockholders | $ | 37,780 | $ | 20,606 | |||
Amounts Attributable to Graham Holdings Company Common Stockholders | |||||||
Income (loss) from continuing operations | $ | 37,780 | $ | (2,683 | ) | ||
Income from discontinued operations, net of tax | — | 23,289 | |||||
Net income attributable to Graham Holdings Company common stockholders | $ | 37,780 | $ | 20,606 | |||
Per Share Information Attributable to Graham Holdings Company Common Stockholders | |||||||
Basic income (loss) per common share from continuing operations | $ | 6.63 | $ | (0.58 | ) | ||
Basic income per common share from discontinued operations | — | 4.09 | |||||
Basic net income per common share | $ | 6.63 | $ | 3.51 | |||
Basic average number of common shares outstanding | 5,623 | 5,704 | |||||
Diluted income (loss) per common share from continuing operations | $ | 6.59 | $ | (0.58 | ) | ||
Diluted income per common share from discontinued operations | — | 4.06 | |||||
Diluted net income per common share | $ | 6.59 | $ | 3.48 | |||
Diluted average number of common shares outstanding | 5,652 | 5,791 |
Three Months Ended March 31 | |||||||
(in thousands) | 2016 | 2015 | |||||
Net Income | $ | 38,215 | $ | 21,800 | |||
Other Comprehensive Income (Loss), Before Tax | |||||||
Foreign currency translation adjustments: | |||||||
Translation adjustments arising during the period | 3,845 | (12,088 | ) | ||||
Adjustment for sale of a business with foreign operations | — | (41 | ) | ||||
3,845 | (12,129 | ) | |||||
Unrealized gains (losses) on available-for-sale securities: | |||||||
Unrealized gains (losses) for the period, net | 343 | (8,878 | ) | ||||
Reclassification of realized gain on sale of available-for-sale securities included in net income | (1,754 | ) | — | ||||
(1,411 | ) | (8,878 | ) | ||||
Pension and other postretirement plans: | |||||||
Amortization of net prior service cost included in net income | 104 | 69 | |||||
Amortization of net actuarial gain included in net income | 290 | 629 | |||||
394 | 698 | ||||||
Cash flow hedge gain | — | 179 | |||||
Other Comprehensive Income (Loss), Before Tax | 2,828 | (20,130 | ) | ||||
Income tax benefit related to items of other comprehensive income (loss) | 407 | 3,202 | |||||
Other Comprehensive Income (Loss), Net of Tax | 3,235 | (16,928 | ) | ||||
Comprehensive Income | 41,450 | 4,872 | |||||
Comprehensive income attributable to noncontrolling interests | (435 | ) | (774 | ) | |||
Total Comprehensive Income Attributable to Graham Holdings Company | $ | 41,015 | $ | 4,098 |
As of | |||||||
(in thousands) | March 31, 2016 | December 31, 2015 | |||||
(Unaudited) | |||||||
Assets | |||||||
Current Assets | |||||||
Cash and cash equivalents | $ | 530,587 | $ | 754,207 | |||
Restricted cash | 34,633 | 20,745 | |||||
Investments in marketable equity securities and other investments | 384,175 | 379,445 | |||||
Accounts receivable, net | 535,574 | 572,435 | |||||
Income taxes receivable | 29,826 | 48,383 | |||||
Inventories and contracts in progress | 31,729 | 32,068 | |||||
Other current assets | 58,965 | 53,439 | |||||
Total Current Assets | 1,605,489 | 1,860,722 | |||||
Property, Plant and Equipment, Net | 224,986 | 231,123 | |||||
Investments in Affiliates | 60,582 | 59,229 | |||||
Goodwill, Net | 1,180,924 | 1,017,513 | |||||
Indefinite-Lived Intangible Assets, Net | 73,779 | 21,885 | |||||
Amortized Intangible Assets, Net | 106,921 | 107,191 | |||||
Prepaid Pension Cost | 992,103 | 979,970 | |||||
Deferred Charges and Other Assets | 67,741 | 75,192 | |||||
Total Assets | $ | 4,312,525 | $ | 4,352,825 | |||
Liabilities and Equity | |||||||
Current Liabilities | |||||||
Accounts payable and accrued liabilities | $ | 399,127 | $ | 428,014 | |||
Deferred revenue | 329,885 | 297,135 | |||||
Dividends declared | 6,820 | — | |||||
Total Current Liabilities | 735,832 | 725,149 | |||||
Postretirement Benefits Other Than Pensions | 33,808 | 33,947 | |||||
Accrued Compensation and Related Benefits | 189,808 | 203,280 | |||||
Other Liabilities | 70,522 | 70,678 | |||||
Deferred Income Taxes | 416,116 | 403,316 | |||||
Long-Term Debt | 399,914 | 399,800 | |||||
Total Liabilities | 1,846,000 | 1,836,170 | |||||
Redeemable Noncontrolling Interest | 26,392 | 25,957 | |||||
Preferred Stock | — | — | |||||
Common Stockholders’ Equity | |||||||
Common stock | 20,000 | 20,000 | |||||
Capital in excess of par value | 360,229 | 356,887 | |||||
Retained earnings | 5,471,698 | 5,447,677 | |||||
Accumulated other comprehensive income, net of tax | |||||||
Cumulative foreign currency translation adjustment | (1,004 | ) | (4,849 | ) | |||
Unrealized gain on available-for-sale securities | 57,653 | 58,500 | |||||
Unrealized gain on pensions and other postretirement plans | 261,266 | 261,029 | |||||
Cost of Class B common stock held in treasury | (3,729,709 | ) | (3,648,546 | ) | |||
Total Equity | 2,440,133 | 2,490,698 | |||||
Total Liabilities and Equity | $ | 4,312,525 | $ | 4,352,825 |
Three Months Ended March 31 | |||||||
(in thousands) | 2016 | 2015 | |||||
Cash Flows from Operating Activities | |||||||
Net Income | $ | 38,215 | $ | 21,800 | |||
Adjustments to reconcile net income to net cash provided by operating activities: | |||||||
Depreciation and amortization | 23,023 | 63,314 | |||||
Net pension benefit | (12,059 | ) | (11,432 | ) | |||
Stock-based compensation expense, net | 3,254 | 5,017 | |||||
Foreign exchange loss | 5,443 | 6,827 | |||||
Gain on disposition of businesses, investments and other assets, net | (20,449 | ) | (4,515 | ) | |||
Equity in (earnings) losses of affiliates, net of distributions | (1,004 | ) | 594 | ||||
Provision (benefit) for deferred income taxes | 2,037 | (114 | ) | ||||
Change in operating assets and liabilities: | |||||||
Restricted cash | (13,888 | ) | (7,340 | ) | |||
Accounts receivable, net | 41,749 | 59,741 | |||||
Accounts payable and accrued liabilities | (45,930 | ) | (28,337 | ) | |||
Deferred revenue | 17,695 | (11,621 | ) | ||||
Income taxes receivable | 17,926 | (117,452 | ) | ||||
Other assets and other liabilities, net | (9,187 | ) | (22,625 | ) | |||
Other | 169 | 272 | |||||
Net Cash Provided by (Used in) Operating Activities | 46,994 | (45,871 | ) | ||||
Cash Flows from Investing Activities | |||||||
Investments in certain businesses, net of cash acquired | (198,179 | ) | — | ||||
Purchases of marketable equity securities | (13,271 | ) | — | ||||
Proceeds from sales of marketable equity securities | 4,392 | — | |||||
Purchases of property, plant and equipment | (10,690 | ) | (47,595 | ) | |||
Investments in equity affiliates and cost method investments | (389 | ) | (905 | ) | |||
Net proceeds from sales of businesses, property, plant and equipment and other assets | 21,285 | (4,331 | ) | ||||
Net Cash Used in Investing Activities | (196,852 | ) | (52,831 | ) | |||
Cash Flows from Financing Activities | |||||||
Common shares repurchased | (81,346 | ) | — | ||||
Dividends paid | (6,938 | ) | (15,645 | ) | |||
Repayments of borrowings | — | (39,343 | ) | ||||
Other | 13,427 | 4,606 | |||||
Net Cash Used in Financing Activities | (74,857 | ) | (50,382 | ) | |||
Effect of Currency Exchange Rate Change | 1,095 | (5,535 | ) | ||||
Net Decrease in Cash and Cash Equivalents | (223,620 | ) | (154,619 | ) | |||
Beginning Cash and Cash Equivalents | 754,207 | 773,986 | |||||
Ending Cash and Cash Equivalents | $ | 530,587 | $ | 619,367 |
Three Months Ended | ||||
(in thousands) | March 31, 2015 | |||
Net Cash Provided by Operating Activities | $ | 39,216 | ||
Net Cash Used in Investing Activities | (37,409 | ) |
Three Months Ended | |||
(in thousands) | March 31, 2015 | ||
Operating revenues | $ | 198,723 | |
Operating costs and expenses | (161,031 | ) | |
Operating income | 37,692 | ||
Non-operating expense | (19 | ) | |
Income from discontinued operations | 37,673 | ||
Provision for income taxes | 13,600 | ||
Net Income from Discontinued Operations | 24,073 | ||
Loss on sale of discontinued operations | (732 | ) | |
Provision for income taxes on disposition of discontinued operations | 52 | ||
Income from Discontinued Operations, Net of Tax | $ | 23,289 |
As of | |||||||
March 31, 2016 | December 31, 2015 | ||||||
(in thousands) | |||||||
Total cost | $ | 261,662 | $ | 253,062 | |||
Gross unrealized gains | 100,508 | 97,741 | |||||
Gross unrealized losses | (4,419 | ) | (240 | ) | |||
Total Fair Value | $ | 357,751 | $ | 350,563 |
Weighted Average Life | Purchase Price Allocation | ||||
(in thousands) | |||||
Cash and cash equivalents | $ | 8,370 | |||
Accounts receivable | 6,065 | ||||
Other current assets | 748 | ||||
Property, plant and equipment | 1,940 | ||||
Goodwill | 161,399 | ||||
Indefinite-lived intangible assets | |||||
Trade names and trademarks | 53,110 | ||||
Amortized intangible assets | |||||
Student and customer relationships | 3 years | 4,767 | |||
Trade names and trademarks | 5 years | 1,347 | |||
3 years | 6,114 | ||||
Current liabilities | (18,353 | ) | |||
Noncurrent liabilities | (11,094 | ) | |||
$ | 208,299 |
Three Months Ended March 31 | |||||||
(in thousands) | 2016 | 2015 | |||||
Operating revenues | $ | 601,919 | $ | 700,310 | |||
Net income | 40,092 | 25,574 |
Three Months Ended March 31, 2015 | ||||
(in thousands) | ||||
Revenue | $ | 61,087 | ||
Operating loss | (3,014 | ) |
(in thousands) | Education | Television Broadcasting | Other Businesses | Total | |||||||||||
Balance as of December 31, 2015 | |||||||||||||||
Goodwill | $ | 1,006,096 | $ | 168,345 | $ | 202,814 | $ | 1,377,255 | |||||||
Accumulated impairment losses | (350,850 | ) | — | (8,892 | ) | (359,742 | ) | ||||||||
655,246 | 168,345 | 193,922 | 1,017,513 | ||||||||||||
Acquisitions | 160,894 | — | 505 | 161,399 | |||||||||||
Foreign currency exchange rate changes | 2,012 | — | — | 2,012 | |||||||||||
Balance as of March 31, 2016 | |||||||||||||||
Goodwill | 1,169,002 | 168,345 | 200,509 | 1,537,856 | |||||||||||
Accumulated impairment losses | (350,850 | ) | — | (6,082 | ) | (356,932 | ) | ||||||||
$ | 818,152 | $ | 168,345 | $ | 194,427 | $ | 1,180,924 |
(in thousands) | Higher Education | Test Preparation | Kaplan International | Total | |||||||||||
Balance as of December 31, 2015 | |||||||||||||||
Goodwill | $ | 392,457 | $ | 166,098 | $ | 447,541 | $ | 1,006,096 | |||||||
Accumulated impairment losses | (248,591 | ) | (102,259 | ) | — | (350,850 | ) | ||||||||
143,866 | 63,839 | 447,541 | 655,246 | ||||||||||||
Acquisitions | — | — | 160,894 | 160,894 | |||||||||||
Foreign currency exchange rate changes | 113 | — | 1,899 | 2,012 | |||||||||||
Balance as of March 31, 2016 | |||||||||||||||
Goodwill | 392,570 | 166,098 | 610,334 | 1,169,002 | |||||||||||
Accumulated impairment losses | (248,591 | ) | (102,259 | ) | — | (350,850 | ) | ||||||||
$ | 143,979 | $ | 63,839 | $ | 610,334 | $ | 818,152 |
As of March 31, 2016 | As of December 31, 2015 | ||||||||||||||||||||||||
(in thousands) | Useful Life Range | Gross Carrying Amount | Accumulated Amortization | Net Carrying Amount | Gross Carrying Amount | Accumulated Amortization | Net Carrying Amount | ||||||||||||||||||
Amortized Intangible Assets | |||||||||||||||||||||||||
Student and customer relationships | 2–10 years | $ | 113,549 | $ | 44,266 | $ | 69,283 | $ | 108,806 | $ | 40,280 | $ | 68,526 | ||||||||||||
Trade names and trademarks | 2–10 years | 55,181 | 25,384 | 29,797 | 53,848 | 23,941 | 29,907 | ||||||||||||||||||
Databases and technology | 3–5 years | 4,617 | 4,178 | 439 | 4,617 | 4,114 | 503 | ||||||||||||||||||
Noncompete agreements | 2–5 years | 1,381 | 1,093 | 288 | 1,381 | 1,012 | 369 | ||||||||||||||||||
Other | 1–7 years | 10,109 | 2,995 | 7,114 | 10,095 | 2,209 | 7,886 | ||||||||||||||||||
$ | 184,837 | $ | 77,916 | $ | 106,921 | $ | 178,747 | $ | 71,556 | $ | 107,191 | ||||||||||||||
Indefinite-Lived Intangible Assets | |||||||||||||||||||||||||
Trade names and trademarks | $ | 72,945 | $ | 21,051 | |||||||||||||||||||||
Licensure and accreditation | 834 | 834 | |||||||||||||||||||||||
$ | 73,779 | $ | 21,885 |
As of | |||||||
March 31, 2016 | December 31, 2015 | ||||||
(in thousands) | |||||||
7.25% unsecured notes due February 1, 2019 (1) | $ | 398,710 | $ | 398,596 | |||
Other indebtedness | 1,204 | 1,204 | |||||
Total Debt | $ | 399,914 | $ | 399,800 |
(1) | The carrying value is net of $0.1 million of unamortized debt issuance costs as of March 31, 2016 and December 31, 2015, respectively. |
As of March 31, 2016 | |||||||||||
(in thousands) | Level 1 | Level 2 | Total | ||||||||
Assets | |||||||||||
Money market investments (1) | $ | — | $ | 295,407 | $ | 295,407 | |||||
Commercial paper (2) | 99,852 | — | 99,852 | ||||||||
Marketable equity securities (3) | 357,751 | — | 357,751 | ||||||||
Other current investments (4) | 8,222 | 18,202 | 26,424 | ||||||||
Total Financial Assets | $ | 465,825 | $ | 313,609 | $ | 779,434 | |||||
Liabilities | |||||||||||
Deferred compensation plan liabilities (5) | $ | — | $ | 45,138 | $ | 45,138 |
As of December 31, 2015 | |||||||||||
(in thousands) | Level 1 | Level 2 | Total | ||||||||
Assets | |||||||||||
Money market investments (1) | $ | — | $ | 433,040 | $ | 433,040 | |||||
Marketable equity securities (3) | 350,563 | — | 350,563 | ||||||||
Other current investments (4) | 12,822 | 16,060 | 28,882 | ||||||||
Total Financial Assets | $ | 363,385 | $ | 449,100 | $ | 812,485 | |||||
Liabilities | |||||||||||
Deferred compensation plan liabilities (5) | $ | — | $ | 48,055 | $ | 48,055 |
(1) | The Company’s money market investments are included in cash, cash equivalents and restricted cash. |
(2) | The Company's commercial paper investments with original maturities of 90 days or less are included in cash and cash equivalents. |
(3) | The Company’s investments in marketable equity securities are classified as available-for-sale. |
(4) | Includes U.S. Government Securities, corporate bonds, mutual funds and time deposits. These investments are valued using a market approach based on the quoted market prices of the security or inputs that include quoted market prices for similar instruments and are classified as either Level 1 or Level 2 in the valuation hierarchy. |
(5) | Includes Graham Holdings Company's Deferred Compensation Plan and supplemental savings plan benefits under the Graham Holdings Company's Supplemental Executive Retirement Plan, which are included in accrued compensation and related benefits. These plans measure the market value of a participant's balance in a notional investment account that is comprised primarily of mutual funds, which are based on observable market prices. However, since the deferred compensation obligations are not exchanged in an active market, they are classified as Level 2 in the fair value hierarchy. Realized and unrealized gains (losses) on deferred compensation are included in operating income. |
Three Months Ended March 31 | |||||||
(in thousands, except per share amounts) | 2016 | 2015 | |||||
Numerator: | |||||||
Numerator for basic earnings (loss) per share: | |||||||
Income (loss) from continuing operations attributable to Graham Holdings Company common stockholders | $ | 37,780 | $ | (2,683 | ) | ||
Less: Dividends paid-common stock outstanding and unvested restricted shares | (13,758 | ) | (30,870 | ) | |||
Undistributed earnings (loss) | 24,022 | (33,553 | ) | ||||
Percent allocated to common stockholders(1) | 98.64 | % | 100.00 | % | |||
23,695 | (33,553 | ) | |||||
Add: Dividends paid-common stock outstanding | 13,574 | 30,228 | |||||
Numerator for basic earnings (loss) per share | $ | 37,269 | $ | (3,325 | ) | ||
Add: Additional undistributed earnings due to dilutive stock options | 2 | — | |||||
Numerator for diluted earnings (loss) per share | $ | 37,271 | $ | (3,325 | ) | ||
Denominator: | |||||||
Denominator for basic earnings (loss) per share: | |||||||
Weighted average shares outstanding | 5,623 | 5,704 | |||||
Add: Effect of dilutive stock options | 29 | — | |||||
Denominator for diluted earnings (loss) per share | 5,652 | 5,704 | |||||
Graham Holdings Company Common Stockholders: | |||||||
Basic earnings (loss) per share from continuing operations | $ | 6.63 | $ | (0.58 | ) | ||
Diluted earnings (loss) per share from continuing operations | $ | 6.59 | $ | (0.58 | ) |
(1) | Percent of undistributed losses allocated to common stockholders is 100% in the first quarter of 2015 as participating securities are not contractually obligated to share in losses. |
Three Months Ended March 31 | |||||
(in thousands) | 2016 | 2015 | |||
Weighted average restricted stock | 38 | 54 | |||
Weighted average stock options | — | 33 |
Three Months Ended March 31 | |||||||
(in thousands) | 2016 | 2015 | |||||
Service cost | $ | 5,342 | $ | 7,252 | |||
Interest cost | 13,073 | 12,780 | |||||
Expected return on assets | (30,548 | ) | (31,545 | ) | |||
Amortization of prior service cost | 74 | 81 | |||||
Net Periodic Benefit | $ | (12,059 | ) | $ | (11,432 | ) |
Three Months Ended March 31 | |||||||
(in thousands) | 2016 | 2015 | |||||
Service cost | $ | 246 | $ | 509 | |||
Interest cost | 1,096 | 1,135 | |||||
Amortization of prior service cost | 114 | 114 | |||||
Recognized actuarial loss | 665 | 878 | |||||
Net Periodic Cost | $ | 2,121 | $ | 2,636 |
As of | |||||
March 31, 2016 | December 31, 2015 | ||||
U.S. equities | 68 | % | 62 | % | |
U.S. fixed income | 17 | % | 13 | % | |
International equities | 15 | % | 25 | % | |
100 | % | 100 | % |
Three Months Ended March 31 | |||||||
(in thousands) | 2016 | 2015 | |||||
Service cost | $ | 346 | $ | 333 | |||
Interest cost | 308 | 325 | |||||
Amortization of prior service credit | (84 | ) | (126 | ) | |||
Recognized actuarial gain | (375 | ) | (249 | ) | |||
Net Periodic Cost | $ | 195 | $ | 283 |
Three Months Ended March 31 | |||||||
(in thousands) | 2016 | 2015 | |||||
Gain on sale of a business | $ | 18,931 | $ | — | |||
Foreign currency loss, net | (5,443 | ) | (6,827 | ) | |||
Gain on formation of joint venture | — | 5,972 | |||||
Gain on sale of marketable equity securities | 1,754 | — | |||||
Other, net | (146 | ) | (250 | ) | |||
Total Other Non-Operating Income (Expense) | $ | 15,096 | $ | (1,105 | ) |
Three Months Ended March 31 | |||||||||||||||||||||||
2016 | 2015 | ||||||||||||||||||||||
Before-Tax | Income | After-Tax | Before-Tax | Income | After-Tax | ||||||||||||||||||
(in thousands) | Amount | Tax | Amount | Amount | Tax | Amount | |||||||||||||||||
Foreign currency translation adjustments: | |||||||||||||||||||||||
Translation adjustments arising during the period | $ | 3,845 | $ | — | $ | 3,845 | $ | (12,088 | ) | $ | — | $ | (12,088 | ) | |||||||||
Adjustment for sale of a business with foreign operations | — | — | — | (41 | ) | — | (41 | ) | |||||||||||||||
3,845 | — | 3,845 | (12,129 | ) | — | (12,129 | ) | ||||||||||||||||
Unrealized (losses) gains on available-for-sale securities: | |||||||||||||||||||||||
Unrealized gains (losses) for the period, net | 343 | (137 | ) | 206 | (8,878 | ) | 3,552 | (5,326 | ) | ||||||||||||||
Reclassification of realized gain on sale of available-for-sale securities included in net income | (1,754 | ) | 701 | (1,053 | ) | — | — | — | |||||||||||||||
(1,411 | ) | 564 | (847 | ) | (8,878 | ) | 3,552 | (5,326 | ) | ||||||||||||||
Pension and other postretirement plans: | |||||||||||||||||||||||
Amortization of net prior service cost included in net income | 104 | (41 | ) | 63 | 69 | (27 | ) | 42 | |||||||||||||||
Amortization of net actuarial gain included in net income | 290 | (116 | ) | 174 | 629 | (252 | ) | 377 | |||||||||||||||
394 | (157 | ) | 237 | 698 | (279 | ) | 419 | ||||||||||||||||
Cash flow hedge: | |||||||||||||||||||||||
Gain for the period | — | — | — | 179 | (71 | ) | 108 | ||||||||||||||||
Other Comprehensive Income (Loss) | $ | 2,828 | $ | 407 | $ | 3,235 | $ | (20,130 | ) | $ | 3,202 | $ | (16,928 | ) |
(in thousands, net of taxes) | Cumulative Foreign Currency Translation Adjustment | Unrealized Gain on Available-for- Sale Securities | Unrealized Gain on Pensions and Other Postretirement Plans | Accumulated Other Comprehensive Income | |||||||||||
Balance as of December 31, 2015 | $ | (4,849 | ) | $ | 58,500 | $ | 261,029 | $ | 314,680 | ||||||
Other comprehensive income before reclassifications | 3,845 | 206 | — | 4,051 | |||||||||||
Net amount reclassified from accumulated other comprehensive income | — | (1,053 | ) | 237 | (816 | ) | |||||||||
Other comprehensive income (loss), net of tax | 3,845 | (847 | ) | 237 | 3,235 | ||||||||||
Balance as of March 31, 2016 | $ | (1,004 | ) | $ | 57,653 | $ | 261,266 | $ | 317,915 |
Three Months Ended March 31 | Affected Line Item in the Condensed Consolidated Statement of Operations | ||||||||
(in thousands) | 2016 | 2015 | |||||||
Foreign Currency Translation Adjustments: | |||||||||
Adjustment for sales of businesses with foreign operations | $ | — | $ | (41 | ) | Income from Discontinued Operations, Net of Tax | |||
Unrealized Gains on Available-for-sale Securities: | |||||||||
Realized gain for the period | (1,754 | ) | — | Other income (expense), net | |||||
701 | — | Provision for Income Taxes | |||||||
(1,053 | ) | — | Net of Tax | ||||||
Pension and Other Postretirement Plans: | |||||||||
Amortization of net prior service cost | 104 | 69 | (1) | ||||||
Amortization of net actuarial gain | 290 | 629 | (1) | ||||||
394 | 698 | Before tax | |||||||
(157 | ) | (279 | ) | Provision for Income Taxes | |||||
237 | 419 | Net of Tax | |||||||
Cash Flow Hedge | |||||||||
— | 132 | Interest expense | |||||||
— | (53 | ) | Provision for Income Taxes | ||||||
— | 79 | Net of Tax | |||||||
Total reclassification for the period | $ | (816 | ) | $ | 457 | Net of Tax |
(1) | These accumulated other comprehensive income components are included in the computation of net periodic pension and postretirement plan cost (see Note 9). |
Three Months Ended March 31 | |||||||
(in thousands) | 2016 | 2015 | |||||
Operating Revenues | |||||||
Education | $ | 401,076 | $ | 500,602 | |||
Television broadcasting | 92,018 | 83,564 | |||||
Other businesses | 108,716 | 63,259 | |||||
Corporate office | — | — | |||||
Intersegment elimination | (70 | ) | — | ||||
$ | 601,740 | $ | 647,425 | ||||
Income (Loss) from Operations | |||||||
Education | $ | 14,488 | $ | (22,849 | ) | ||
Television broadcasting | 41,220 | 38,562 | |||||
Other businesses | (5,730 | ) | (5,162 | ) | |||
Corporate office | 1,894 | (1,689 | ) | ||||
$ | 51,872 | $ | 8,862 | ||||
Equity in Earnings (Losses) of Affiliates, Net | 1,004 | (404 | ) | ||||
Interest Expense, Net | (7,357 | ) | (7,942 | ) | |||
Other Income (Expense), Net | 15,096 | (1,105 | ) | ||||
Income (Loss) from Continuing Operations Before Income Taxes | $ | 60,615 | $ | (589 | ) | ||
Depreciation of Property, Plant and Equipment | |||||||
Education | $ | 11,103 | $ | 18,528 | |||
Television broadcasting | 2,377 | 2,109 | |||||
Other businesses | 3,027 | 1,302 | |||||
Corporate office | 254 | 258 | |||||
$ | 16,761 | $ | 22,197 | ||||
Amortization of Intangible Assets | |||||||
Education | $ | 1,681 | $ | 1,507 | |||
Television broadcasting | 63 | 63 | |||||
Other businesses | 4,518 | 3,168 | |||||
Corporate office | — | — | |||||
$ | 6,262 | $ | 4,738 | ||||
Net Pension (Credit) Expense | |||||||
Education | $ | 3,109 | $ | 3,947 | |||
Television broadcasting | 439 | 391 | |||||
Other businesses | 254 | 193 | |||||
Corporate office | (15,861 | ) | (16,938 | ) | |||
$ | (12,059 | ) | $ | (12,407 | ) |
As of | |||||||
(in thousands) | March 31, 2016 | December 31, 2015 | |||||
Identifiable Assets | |||||||
Education | $ | 1,419,547 | $ | 1,454,520 | |||
Television broadcasting | 310,055 | 312,243 | |||||
Other businesses | 697,543 | 712,161 | |||||
Corporate office | 474,944 | 484,139 | |||||
$ | 2,902,089 | $ | 2,963,063 | ||||
Investments in Marketable Equity Securities | 357,751 | 350,563 | |||||
Investments in Affiliates | 60,582 | 59,229 | |||||
Prepaid Pension Cost | 992,103 | 979,970 | |||||
Total Assets | $ | 4,312,525 | $ | 4,352,825 |
Three Months Ended | |||||||
March 31 | |||||||
(in thousands) | 2016 | 2015 | |||||
Operating Revenues | |||||||
Higher education | $ | 165,549 | $ | 237,568 | |||
Test preparation | 66,462 | 69,226 | |||||
Kaplan international | 169,287 | 192,081 | |||||
Kaplan corporate and other | 125 | 1,859 | |||||
Intersegment elimination | (347 | ) | (132 | ) | |||
$ | 401,076 | $ | 500,602 | ||||
Income (Loss) from Operations | |||||||
Higher education | $ | 21,306 | $ | 593 | |||
Test preparation | (2,310 | ) | (4,334 | ) | |||
Kaplan international | 4,897 | 7,717 | |||||
Kaplan corporate and other | (9,405 | ) | (26,857 | ) | |||
Intersegment elimination | — | 32 | |||||
$ | 14,488 | $ | (22,849 | ) | |||
Depreciation of Property, Plant and Equipment | |||||||
Higher education | $ | 4,175 | $ | 4,828 | |||
Test preparation | 1,781 | 2,890 | |||||
Kaplan international | 5,060 | 4,654 | |||||
Kaplan corporate and other | 87 | 6,156 | |||||
$ | 11,103 | $ | 18,528 | ||||
Amortization of Intangible Assets | $ | 1,681 | $ | 1,507 | |||
Pension Expense | |||||||
Higher education | $ | 1,905 | $ | 2,532 | |||
Test preparation | 768 | 775 | |||||
Kaplan international | 67 | 106 | |||||
Kaplan corporate and other | 369 | 534 | |||||
$ | 3,109 | $ | 3,947 |
As of | |||||||
(in thousands) | March 31, 2016 | December 31, 2015 | |||||
Identifiable assets | |||||||
Higher education | $ | 238,885 | $ | 447,282 | |||
Test preparation | 142,501 | 134,535 | |||||
Kaplan international | 990,326 | 826,475 | |||||
Kaplan corporate and other | 47,835 | 46,228 | |||||
$ | 1,419,547 | $ | 1,454,520 |
• | an $18.9 million non-operating gain arising from the sale of a business (after-tax impact of $11.9 million, or $2.08 per share); |
• | a $1.8 million gain on the sale of marketable equity securities (after-tax impact of $1.1 million, or $0.19 per share); and |
• | $5.4 million in non-operating unrealized foreign currency losses (after-tax impact of $3.4 million, or $0.60 per share). |
• | $10.7 million in restructuring charges and accelerated depreciation at the education division (after-tax impact of $6.8 million, or $1.17 per share); |
• | $6.0 million gain on the formation of a joint venture (after-tax impact of $3.6 million, or $0.50 per share); and |
• | $6.8 million in non-operating unrealized foreign currency losses (after-tax impact of $4.4 million, or $0.75 per share). |
Three Months Ended | ||||||||||
March 31 | ||||||||||
(in thousands) | 2016 | 2015 | % Change | |||||||
Revenue | ||||||||||
Higher education | $ | 165,549 | $ | 237,568 | (30 | ) | ||||
Test preparation | 66,462 | 69,226 | (4 | ) | ||||||
Kaplan international | 169,287 | 192,081 | (12 | ) | ||||||
Kaplan corporate and other | 125 | 1,859 | (93 | ) | ||||||
Intersegment elimination | (347 | ) | (132 | ) | — | |||||
$ | 401,076 | $ | 500,602 | (20 | ) | |||||
Operating Income (Loss) | ||||||||||
Higher education | $ | 21,306 | $ | 593 | — | |||||
Test preparation | (2,310 | ) | (4,334 | ) | 47 | |||||
Kaplan international | 4,897 | 7,717 | (37 | ) | ||||||
Kaplan corporate and other | (7,724 | ) | (25,350 | ) | 70 | |||||
Amortization of intangible assets | (1,681 | ) | (1,507 | ) | (12 | ) | ||||
Intersegment elimination | — | 32 | — | |||||||
$ | 14,488 | $ | (22,849 | ) | — |
Three Months Ended | ||||||||
March 31 | ||||||||
(in thousands) | 2016 | 2015 | ||||||
Revenue | $ | 798 | $ | 65,307 | ||||
Operating loss | $ | (1,192 | ) | $ | (12,288 | ) |
As of March 31 | |||||
2016 | 2015 | ||||
Certificate | 5.8 | % | 2.5 | % | |
Associate’s | 22.1 | % | 29.7 | % | |
Bachelor’s | 50.5 | % | 45.4 | % | |
Master’s | 21.6 | % | 22.4 | % | |
100.0 | % | 100.0 | % |
Three Months Ended | ||||
March 31 | ||||
(in thousands) | 2016 | |||
Operating revenues | $ | 56,675 | ||
Operating expenses | 50,848 | |||
Depreciation | 1,873 | |||
Amortization of intangible assets | 2,817 | |||
Operating income | $ | 1,137 |
Moody’s | Standard & Poor’s | ||
Long-term | Ba1 | BB+ |
Period | Total Number of Shares Purchased | Average Price Paid per Share | Total Number of Shares Purchased as Part of Publicly Announced Plan* | Maximum Number of Shares that May Yet Be Purchased Under the Plan* | |||||||||
January | 49,853 | $ | 462.17 | 49,853 | 403,921 | ||||||||
February | 118,845 | 486.39 | 118,845 | 285,076 | |||||||||
March | 1,068 | 468.72 | 1,068 | 284,008 | |||||||||
169,766 | $ | 479.17 | 169,766 |
Exhibit Number | Description |
3.1 | Restated Certificate of Incorporation of the Company dated November 13, 2003 (incorporated by reference to Exhibit 3.1 to the Company’s Annual Report on Form 10-K for the fiscal year ended December 28, 2003). |
3.2 | Certificate of Amendment, effective November 29, 2013, to the Restated Certificate of Incorporation of the Company (incorporated by reference to Exhibit 3.1 to the Company’s current Report on Form 8-K dated November 29, 2013). |
3.3 | By-Laws of the Company as amended and restated through November 29, 2013 (incorporated by reference to Exhibit 3.2 to the Company’s Current Report on Form 8-K dated November 29, 2013). |
4.1 | Second Supplemental Indenture dated January 30, 2009, between the Company and The Bank of New York Mellon Trust Company, N.A., as successor to The First National Bank of Chicago, as Trustee (incorporated by reference to Exhibit 10.2 to the Company’s Current Report on Form 8-K dated January 30, 2009). |
4.2 | Five Year Credit Agreement, dated as of June 29, 2015, among the Company, and certain of its domestic subsidiaries as guarantors, the several lenders from time to time party thereto, Wells Fargo Bank, National Association, as Administrative Agent and JPMorgan Chase Bank, N.A., as Syndication Agent. (incorporated by reference to Exhibit 10.1 to the Company’s Current Report on Form 8-K dated June 29, 2015). |
31.1 | Rule 13a-14(a)/15d-14(a) Certification of the Chief Executive Officer. |
31.2 | Rule 13a-14(a)/15d-14(a) Certification of the Chief Financial Officer. |
32 | Section 1350 Certification of the Chief Executive Officer and the Chief Financial Officer. * |
101 | The following financial information from Graham Holdings Company Quarterly Report on Form 10-Q for the period ended March 31, 2016, formatted in Extensible Business Reporting Language (XBRL): (i) Condensed Consolidated Statements of Operations for the Three Months Ended March 31, 2016 and 2015, (ii) Condensed Consolidated Statements of Comprehensive Income for the Three Months Ended March 31, 2016 and 2015, (iii) Condensed Consolidated Balance Sheets as of March 31, 2016 and December 31, 2015, (iv) Condensed Consolidated Statements of Cash Flows for the Three Months Ended March 31, 2016 and 2015, and (v) Notes to Condensed Consolidated Financial Statements. Pursuant to Rule 406T of Regulation S-T, these interactive data files are deemed “furnished” and not “filed” or part of a registration statement or prospectus for purposes of Sections 11 or 12 of the Securities Act of 1933, are deemed “furnished” and not “filed” for purposes of Section 18 of the Securities Exchange Act of 1934, and otherwise are not subject to liability under these sections. |
GRAHAM HOLDINGS COMPANY | ||
(Registrant) | ||
Date: May 4, 2016 | /s/ Timothy J. O’Shaughnessy | |
Timothy J. O'Shaughnessy, President & Chief Executive Officer (Principal Executive Officer) | ||
Date: May 4, 2016 | /s/ Hal S. Jones | |
Hal S. Jones, Senior Vice President-Finance (Principal Financial Officer) |
(a) | Designed such disclosure controls and procedures, or caused such disclosure controls and procedures to be designed under our supervision, to ensure that material information relating to the Registrant, including its consolidated subsidiaries, is made known to us by others within those entities, particularly during the period in which this report is being prepared; |
(b) | Designed such internal control over financial reporting, or caused such internal control over financial reporting to be designed under our supervision, to provide reasonable assurance regarding the reliability of financial reporting and the preparation of financial statements for external purposes in accordance with generally accepted accounting principles; |
(c) | Evaluated the effectiveness of the Registrant’s disclosure controls and procedures and presented in this report our conclusions about the effectiveness of the disclosure controls and procedures, as of the end of the period covered by this report based on such evaluation; and |
(d) | Disclosed in this report any change in the Registrant’s internal control over financial reporting that occurred during the Registrant’s most recent fiscal quarter (the Registrant’s fourth fiscal quarter in the case of an annual report) that has materially affected, or is reasonably likely to materially affect, the Registrant’s internal control over financial reporting; and |
(a) | All significant deficiencies and material weaknesses in the design or operation of internal control over financial reporting which are reasonably likely to adversely affect the Registrant’s ability to record, process, summarize and report financial information; and |
(b) | Any fraud, whether or not material, that involves management or other employees who have a significant role in the Registrant’s internal control over financial reporting. |
/s/ Timothy J. O’Shaughnessy |
(a) | Designed such disclosure controls and procedures, or caused such disclosure controls and procedures to be designed under our supervision, to ensure that material information relating to the Registrant, including its consolidated subsidiaries, is made known to us by others within those entities, particularly during the period in which this report is being prepared; |
(b) | Designed such internal control over financial reporting, or caused such internal control over financial reporting to be designed under our supervision, to provide reasonable assurance regarding the reliability of financial reporting and the preparation of financial statements for external purposes in accordance with generally accepted accounting principles; |
(c) | Evaluated the effectiveness of the Registrant’s disclosure controls and procedures and presented in this report our conclusions about the effectiveness of the disclosure controls and procedures, as of the end of the period covered by this report based on such evaluation; and |
(d) | Disclosed in this report any change in the Registrant’s internal control over financial reporting that occurred during the Registrant’s most recent fiscal quarter (the Registrant’s fourth fiscal quarter in the case of an annual report) that has materially affected, or is reasonably likely to materially affect, the Registrant’s internal control over financial reporting; and |
(a) | All significant deficiencies and material weaknesses in the design or operation of internal control over financial reporting which are reasonably likely to adversely affect the Registrant’s ability to record, process, summarize and report financial information; and |
(b) | Any fraud, whether or not material, that involves management or other employees who have a significant role in the Registrant’s internal control over financial reporting. |
/s/ Hal S. Jones |
(1) | The Report fully complies with the requirements of Section 13(a) or 15(d) of the Securities Exchange Act of 1934; and |
(2) | The information contained in the Report fairly presents, in all material respects, the financial condition and results of operations of the Company. |
/s/ Timothy J. O’Shaughnessy |
/s/ Hal S. Jones |
Document and Entity Information - shares |
3 Months Ended | |
---|---|---|
Mar. 31, 2016 |
Apr. 29, 2016 |
|
Document Type | 10-Q | |
Amendment Flag | false | |
Document Period End Date | Mar. 31, 2016 | |
Document Fiscal Year Focus | 2016 | |
Document Fiscal Period Focus | Q1 | |
Trading Symbol | ghc | |
Entity Registrant Name | GRAHAM HOLDINGS CO | |
Entity Central Index Key | 0000104889 | |
Current Fiscal Year End Date | --12-31 | |
Entity Filer Category | Large Accelerated Filer | |
Class A Common Stock [Member] | ||
Entity Common Stock, Shares Outstanding | 964,001 | |
Class B Common Stock [Member] | ||
Entity Common Stock, Shares Outstanding | 4,654,132 |
Organization, Basis of Presentation and Recent Accounting Pronouncements |
3 Months Ended |
---|---|
Mar. 31, 2016 | |
Organization, Consolidation and Presentation of Financial Statements [Abstract] | |
Organization, Basis of Presentation and Recent Accounting Pronouncements | ORGANIZATION, BASIS OF PRESENTATION AND RECENT ACCOUNTING PRONOUNCEMENTS Graham Holdings Company (the Company), is a diversified education and media company. The Company’s Kaplan subsidiary provides a wide variety of educational services, both domestically and outside the United States. The Company’s media operations comprise the ownership and operation of five television broadcasting stations. The Company's other business operations include home health and hospice services and manufacturing. Basis of Presentation – The accompanying condensed consolidated financial statements have been prepared in accordance with: (i) generally accepted accounting principles in the United States of America (GAAP) for interim financial information; (ii) the instructions to Form 10-Q; and (iii) the guidance of Rule 10-01 of Regulation S-X under the Securities and Exchange Act of 1934, as amended, for financial statements required to be filed with the Securities and Exchange Commission (SEC). They include the assets, liabilities, results of operations and cash flows of the Company, including its domestic and foreign subsidiaries that are more than 50% owned or otherwise controlled by the Company. As permitted under such rules, certain notes and other financial information normally required by GAAP have been condensed or omitted. Management believes the accompanying condensed consolidated financial statements reflect all normal and recurring adjustments necessary for a fair statement of the Company’s financial position, results of operations, and cash flows as of and for the periods presented herein. The Company’s results of operations for the three months ended March 31, 2016 and 2015 may not be indicative of the Company’s future results. These condensed consolidated financial statements are unaudited and should be read in conjunction with the Company’s audited consolidated financial statements and the notes thereto included in the Company’s Annual Report on Form 10-K for the fiscal year ended December 31, 2015. The year-end condensed consolidated balance sheet data was derived from audited financial statements, but does not include all disclosures required by GAAP. Certain amounts in previously issued financial statements have been reclassified to conform to the current year presentation, which includes the reclassification of the results of operations of certain businesses as discontinued operations for all periods presented. Use of Estimates in the Preparation of the Condensed Consolidated Financial Statements – The preparation of the condensed consolidated financial statements in conformity with GAAP requires management to make estimates and judgments that affect the amounts reported herein. Management bases its estimates and assumptions on historical experience and on various other factors that are believed to be reasonable under the circumstances. Due to the inherent uncertainty involved in making estimates, actual results reported in future periods may be affected by changes in those estimates. Recently Adopted and Issued Accounting Pronouncements – In May 2014, the Financial Accounting Standards Board (FASB) issued comprehensive new guidance that supersedes all existing revenue recognition guidance. In August 2015, the FASB issued an amendment to the guidance that defers the effective date by one year. The new guidance requires revenue to be recognized when the Company transfers promised goods or services to customers in an amount that reflects the consideration to which the Company expects to be entitled in exchange for those goods or services. The new guidance also significantly expands the disclosure requirements for revenue recognition. The guidance is effective for interim and fiscal years beginning after December 15, 2017. Early adoption is permitted only as of annual reporting periods beginning after December 15, 2016. The standard permits two implementation approaches, one requiring retrospective application of the new guidance with a restatement of prior years and one requiring prospective application of the new guidance with disclosure of results under the old guidance. The Company is in the process of evaluating the impact of this new guidance on its Condensed Consolidated Financial Statements and believes such evaluation will extend over several future periods because of the significance of the changes to the Company’s policies and business processes. In August 2014, the FASB issued new guidance that requires management to assess the Company’s ability to continue as a going concern and to provide related disclosures in certain circumstances. This guidance is effective for interim and fiscal years ending after December 15, 2016, with early adoption permitted. The Company does not expect this guidance to have an impact on its Condensed Consolidated Financial Statements. In April 2015, the FASB issued new guidance that simplifies the presentation of debt issuance costs. The new guidance requires that debt issuance costs be reported in the balance sheet as a direct deduction from the gross amount of debt instead of classified as a deferred asset. The guidance is effective for interim and fiscal years beginning after December 15, 2015. The Company adopted the new guidance retrospectively as of January 1, 2016. Therefore, prior periods have been adjusted to reflect this guidance which resulted in the reclassification of $0.1 million of unamortized debt issuance costs related to the Company's 7.25% unsecured notes from deferred charges and other assets to long-term debt within its Condensed Consolidated Balance Sheet as of December 31, 2015. In January 2016, the FASB issued new guidance that substantially revises the recognition, measurement and presentation of financial assets and financial liabilities. The new guidance, among other things, requires, (i) equity investments (except those accounted for under the equity method of accounting or those that result in consolidation of the investee) to be measured at fair value with changes in fair value recognized in net income, with some exceptions, (ii) simplifies the impairment assessment of equity investments without readily determinable fair values by requiring a qualitative assessment to identify impairment, (iii) requires public business entities to use the exit price notion when measuring the fair value of financial instruments for disclosure purposes, (iv) requires separate presentation of financial assets and financial liabilities by measurement category and form of financial asset on the balance sheet or the accompanying notes to the financial statements, and (v) clarifies that an entity should evaluate the need for a valuation allowance on a deferred tax asset related to available-for-sale securities in combination with the entity’s other deferred tax assets. The guidance is effective for interim and fiscal years beginning after December 15, 2017. Early adoption is not permitted. The Company is in the process of evaluating the impact of this new guidance on its Condensed Consolidated Financial Statements. In February 2016, the FASB issued new guidance that requires, among other things, a lessee to recognize a right-of-use asset representing an entity's right to use the underlying asset for the lease term and a liability for lease payments on its balance sheet, regardless of classification of a lease as operating or financing. For leases with a term of twelve months or less, a lessee is permitted to make an accounting policy election by class of underlying asset not to recognize lease assets and liabilities and account for the lease similar to existing guidance for operating leases today. This new guidance supersedes all prior guidance. The guidance is effective for interim and fiscal years beginning after December 15, 2018. Early adoption is permitted. The standard requires lessees and lessors to recognize and measure leases at the beginning of the earliest period presented using a modified retrospective approach. The Company is in the process of evaluating the impact of this new guidance on its Condensed Consolidated Financial Statements. In March 2016, the FASB issued new guidance that simplifies the accounting for stock-based compensation. The new guidance (i) requires all excess tax benefits and tax deficiencies to be recognized in the income statement with the tax effects of vested or exercised awards treated as discrete items. Additionally, excess tax benefits will be recognized regardless of whether the benefit reduces taxes payable in the current period, effectively eliminating the APIC pool, (ii) concludes excess tax benefits should be classified as an operating activity in the statement of cash flows, (iii) requires an entity to make an entity-wide accounting policy election to either estimate a forfeiture rate for awards or account for forfeitures as they occur, (iv) changes the threshold for equity classification for cash settlements of awards for withholding requirements to the maximum statutory tax rate in the applicable jurisdiction and (v) concludes cash paid by an employer when directly withholding shares for tax-withholding purposes should be classified as a financing activity in the statement of cash flows. The guidance is effective for interim and fiscal years beginning after December 15, 2016. Early adoption is permitted. The Company is in the process of evaluating the impact of this new guidance on its Condensed Consolidated Financial Statements. |
Discontinued Operations |
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Discontinued Operations and Disposal Groups [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Discontinued Operations | DISCONTINUED OPERATIONS Cable ONE Spin-Off. On July 1, 2015 (the “Distribution Date”), the Company completed the spin-off of Cable One, Inc. (Cable ONE) as an independent, publicly traded company. The transaction was structured as a tax-free spin-off of Cable ONE to the stockholders of the Company as one share of Cable ONE common stock was distributed for every share of Class A and Class B common stock of Graham Holdings outstanding on the June 15, 2015, record date. Cable ONE is now an independent public company trading on the New York Stock Exchange under the symbol “CABO”. After the spin, the Company does not beneficially own any shares of Cable ONE common stock. The results of operations of Cable ONE are included in the Company’s Condensed Consolidated Statements of Operations as income from discontinued operations, net of tax, for 2015. The Company did not reclassify its Statements of Cash Flows to reflect the various discontinued operations. Cash flows from Cable ONE for the three months ended March 31, 2015 are combined with the cash flows from operations within each of the categories presented. Cash flows from Cable ONE are as follows:
Other Discontinued Operations. In the third quarter of 2014, Kaplan completed the sale of three of its schools in China that were previously included as part of Kaplan International. An additional school in China was sold by Kaplan in January of 2015 that resulted in a pre-tax loss of $0.7 million. The results of operations of the schools in China are included in the Company’s Condensed Consolidated Statements of Operations as income from discontinued operations, net of tax, for 2015. The summarized income from discontinued operations, net of tax, is presented below:
|
Investments |
3 Months Ended | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
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Investments [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Investments | INVESTMENTS As of March 31, 2016 and December 31, 2015, the Company had commercial paper and money market investments of $395.3 million and $433.0 million, respectively, that are classified as cash, cash equivalents and restricted cash in the Company's Condensed Consolidated Balance Sheets. Investments in marketable equity securities comprised the following:
The Company settled on $13.3 million of marketable equity securities during the first three months of 2016, of which, $12.9 million was purchased in the first quarter. There were no new investments in marketable equity securities during the first three months of 2015. During the first three months of 2016, the net realized gains from sales of marketable equity securities were $1.8 million. The total proceeds from such sales were $6.0 million, of which, $1.6 million settled in April 2016. There were no sales of marketable equity securities in the first three months of 2015. As of March 31, 2016, the Company held an approximate 20% interest in HomeHero and interests in several other affiliates; Residential Healthcare held a 40% interest in Residential Home Health Illinois and a 42.5% interest in Residential Hospice Illinois; and Celtic Healthcare held a 40% interest in the joint venture formed between Celtic Healthcare and Allegheny Health Network (AHN) (see Note 4). |
Acquisitions and Dispositions of Businesses |
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Acqusitions and Dispositions [Abstract] | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Acquisitions and Dispositions of Businesses | ACQUISITIONS AND DISPOSITIONS OF BUSINESSES Acquisitions. In January and February 2016, Kaplan acquired a 100% interest in Mander Portman Woodward, a leading provider of high-quality, bespoke education to U.K. and international students in London, Cambridge and Birmingham; and a 100% interest in Osborne Books, a leading educational publisher of learning resources for accounting qualifications in the U.K. These acquisitions totaled $208.3 million and are included in Kaplan International. In the first three months of 2015, the Company did not make any acquisitions. Acquisition-related costs were expensed as incurred and were not significant. The aggregate purchase price of these 2016 acquisitions was allocated as follows on a preliminary basis:
The fair values recorded were based upon preliminary valuations and the estimates and assumptions used in such valuations are subject to change, which could be significant, within the measurement period (up to one year from the acquisition date). The recording of deferred tax assets or liabilities, working capital, and the final amount of residual goodwill are not yet finalized. The Company expects no tax basis of goodwill for income tax purposes from these two acquisitions. The acquired companies were consolidated into the Company’s financial statements starting on their respective acquisition dates. The Company’s Condensed Consolidated Statements of Operations include aggregate revenues and operating income for the companies acquired in 2016 of $11.4 million and $3.8 million, respectively, for the first three months of 2016. The following unaudited pro forma financial information presents the Company’s results as if the acquisitions had occurred at the beginning of 2015:
These pro forma results were based on estimates and assumptions, which the Company believes are reasonable. They are not the results that would have been realized had these entities been part of the Company during the periods presented and are not necessarily indicative of the Company’s consolidated results of operations in future periods. On November 13, 2015, the Company acquired a 100% interest in Group Dekko, a Garrett, IN-based manufacturer of electrical solutions for applications across three business lines: workspace power solutions, architectural lighting, and electrical components and assemblies, which is included in other businesses. On December 22, 2015, Kaplan acquired a 100% interest in SmartPros, a provider of accredited professional education and training, primarily in accountancy, which is included in Higher Education. Spin-Off. On July 1, 2015, the Company completed the spin-off of Cable ONE, by way of a distribution of all the issued and outstanding shares of Cable ONE common stock, on a pro rata basis, to the Company's stockholders (see Note 2). Sale of Businesses. In January 2016, Kaplan completed the sale of Colloquy, which was included in Kaplan Corporate and Other. On September 3, 2015, Kaplan completed the sale of substantially all of the assets of its KHE Campuses business, consisting of 38 nationally accredited ground campuses and certain related assets, in exchange for a preferred equity interest in Education Corporation of America (ECA). KHE Campuses schools that have been closed or are in the process of closing are not included in the sale transaction. In connection with the sale agreement, if required by the U.S. Department of Education (ED) in connection with its post-closing review of the transaction, Kaplan will provide a letter of credit or other credit support with the ED of up to approximately $45 million; any such letter of credit or other credit support could be drawn by the ED in the event that ECA defaults on its obligations to students. If issued, such letter of credit or other credit support would have a term of two years, after which Kaplan would have no further obligations. The revenue and operating losses related to schools that were sold as part of the ECA transaction are as follows:
In the third quarter of 2015, Kaplan sold Franklyn Scholar, which was part of Kaplan International. In the second quarter of 2015, the Company sold The Root, a component of Slate, and Kaplan sold two small businesses, Structuralia, which was part of Kaplan International, and Fire and EMS Training, which was part of Kaplan Higher Education. In the third quarter of 2014, Kaplan completed the sale of three of its schools in China that were previously included as part of Kaplan International. In January 2015, Kaplan completed the sale of an additional school in China. Other. In January 2015, Celtic and AHN closed on the formation of a joint venture to combine each other’s home health and hospice assets in the western Pennsylvania region. Although Celtic manages the operations of the joint venture, Celtic holds a 40% interest in the joint venture, so the operating results of the joint venture are not consolidated and the pro rata operating results are included in the Company’s equity in earnings of affiliates. Celtic’s revenues from the western Pennsylvania region that are now part of the joint venture made up 29% of total Celtic revenues in 2014. The Company’s income from continuing operations excludes Cable ONE and the sold Kaplan China school, which have been reclassified to discontinued operations, net of tax (see Note 2). |
Goodwill and Other Intangible Assets |
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Goodwill and Intangible Assets Disclosure [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Goodwill and Other Intangible Assets | GOODWILL AND OTHER INTANGIBLE ASSETS Amortization of intangible assets for the three months ended March 31, 2016 and 2015 was $6.3 million and $4.7 million, respectively. Amortization of intangible assets is estimated to be approximately $19 million for the remainder of 2016, $21 million in 2017, $19 million in 2018, $17 million in 2019, $15 million in 2020 and $16 million thereafter. The changes in the carrying amount of goodwill, by segment, were as follows:
The changes in carrying amount of goodwill at the Company’s education division were as follows:
Other intangible assets consist of the following:
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Debt |
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Debt Disclosure [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Debt | DEBT The Company’s borrowings consist of the following:
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The Company’s other indebtedness at March 31, 2016 is at an interest rate of 6% and matures in 2019. On June 29, 2015, the Company entered into a credit agreement (the Credit Agreement) providing for a new U.S. $200 million five-year revolving credit facility (the Facility). The Company may draw on the Facility for general corporate purposes. The Facility will expire on July 1, 2020, unless the Company and the banks agree to extend the term. The Credit Agreement contains terms and conditions, including remedies in the event of a default by the Company, typical of facilities of this type. As of March 31, 2016, the Company is in compliance with all financial covenants. During the three months ended March 31, 2016 and 2015, the Company had average borrowings outstanding of approximately $399.9 million and $434.5 million, respectively, at average annual interest rates of approximately 7.2% and 7.1%, respectively. During the three months ended March 31, 2016 and 2015, the Company incurred net interest expense of $7.4 million and $7.9 million, respectively. At March 31, 2016, the fair value of the Company’s 7.25% unsecured notes, based on quoted market prices, totaled $433.1 million, compared with the carrying amount of $398.7 million. At December 31, 2015, the fair value of the Company’s 7.25% unsecured notes, based on quoted market prices, totaled $436.6 million, compared with the carrying amount of $398.6 million. The carrying value of the Company’s other unsecured debt at March 31, 2016 approximates fair value. |
Fair Value Measurements |
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Fair Value Disclosures [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Fair Value Measurements | FAIR VALUE MEASUREMENTS The Company’s financial assets and liabilities measured at fair value on a recurring basis were as follows:
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Earnings (Loss) Per Share |
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Earnings Per Share [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Earnings (Loss) Per Share | EARNINGS (LOSS) PER SHARE The Company's unvested restricted stock awards contain nonforfeitable rights to dividends and, therefore, are considered participating securities for purposes of computing earnings per share pursuant to the two-class method. The diluted earnings per share computed under the two-class method is lower than the diluted earnings per share computed under the treasury stock method, resulting in the presentation of the lower amount in diluted earnings per share. The computation of the earnings per share under the two-class method excludes the income attributable to the unvested restricted stock awards from the numerator and excludes the dilutive impact of those underlying shares from the denominator. The following reflects the Company's income (loss) from continuing operations and share data used in the basic and diluted earnings (loss) per share computations using the two-class method:
Diluted earnings (loss) per share excludes the following weighted average potential common shares, as the effect would be antidilutive, as computed under the treasury stock method:
The diluted earnings per share amounts for the three months ended March 31, 2016 exclude the effects of 102,000 stock options outstanding as their inclusion would have been antidilutive due to a market condition. The diluted loss per share amounts for the three months ended March 31, 2015 exclude the effects of 50,000 stock options outstanding as their inclusion would have been antidilutive due to a market condition. The diluted earnings per share amounts for the three months ended March 31, 2016 exclude the effects of 6,100 restricted stock awards as their inclusion would have been antidilutive due to a performance condition. The diluted loss per share amounts for the three months ended March 31, 2015 exclude the effects of 5,850 restricted stock awards, as their inclusion would have been antidilutive due to a performance condition. In the three months ended March 31, 2016 and March 31, 2015, the Company declared regular dividends totaling $2.42 and $5.30, respectively. |
Pension and Postretirement Plans |
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General Discussion of Pension and Other Postretirement Benefits [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Pension and Postretirement Plans | PENSION AND POSTRETIREMENT PLANS Defined Benefit Plans. The total benefit arising from the Company’s defined benefit pension plans, including a portion included in discontinued operations, consists of the following components:
For the three months ended March 31, 2015, the net periodic benefit for the Company's pension plans, as reported above, includes costs of $1.0 million reported in discontinued operations. The total cost arising from the Company’s Supplemental Executive Retirement Plan (SERP), including a portion included in discontinued operations, consists of the following components:
For the three months ended March 31, 2015, the net periodic cost for the Company's SERP, as reported above, includes costs of $0.1 million reported in discontinued operations. Defined Benefit Plan Assets. The Company’s defined benefit pension obligations are funded by a portfolio made up of a relatively small number of stocks and high-quality fixed-income securities that are held by a third-party trustee. The assets of the Company’s pension plan were allocated as follows:
Essentially all of the assets are actively managed by two investment companies. The goal of the investment managers is to produce moderate long-term growth in the value of these assets, while protecting them against large decreases in value. Both of these managers may invest in a combination of equity and fixed-income securities and cash. The managers are not permitted to invest in securities of the Company or in alternative investments. The investment managers cannot invest more than 20% of the assets at the time of purchase in the stock of Berkshire Hathaway or more than 10% of the assets in the securities of any other single issuer, except for obligations of the U.S. Government, without receiving prior approval by the Plan administrator. As of March 31, 2016, the managers can invest no more than 24% of the assets in specified international exchanges, at the time the investment is made, and no less than 10% of the assets could be invested in fixed-income securities. None of the assets was managed internally by the Company in the first quarter of 2016. In the second quarter of 2016, the Company plans to begin managing approximately 44% of the pension assets internally, of which the majority will be invested in U.S. Stock Index Funds. The investment goal of the internally managed assets is consistent with the other externally managed assets. The remaining 56% of plan assets will still be managed by the two investment companies. In determining the expected rate of return on plan assets, the Company considers the relative weighting of plan assets, the historical performance of total plan assets and individual asset classes and economic and other indicators of future performance. In addition, the Company may consult with and consider the input of financial and other professionals in developing appropriate return benchmarks. The Company evaluated its defined benefit pension plan asset portfolio for the existence of significant concentrations (defined as greater than 10% of plan assets) of credit risk as of March 31, 2016. Types of concentrations that were evaluated include, but are not limited to, investment concentrations in a single entity, type of industry, foreign country and individual fund. At March 31, 2016, the pension plan held common stock in one investment that exceeded 10% of total plan assets, valued at $250.1 million, or 12% of total plan assets. At December 31, 2015, the pension plan held common stock in two investments that exceeded 10% of total plan assets, valued at $562.6 million, or 25% of total plan assets. At December 31, 2015, the pension plan held investments in one foreign country that exceeded 10% of total plan assets, valued at $332.4 million, or 15% of total plan assets. Other Postretirement Plans. The total cost arising from the Company’s other postretirement plans consists of the following components:
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Other Non-Operating Income (Expense) |
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Other Nonoperating Income (Expense) [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Other Non-Operating Income (Expense) | OTHER NON-OPERATING INCOME (EXPENSE) A summary of non-operating income (expense) is as follows:
In the first quarter of 2016, Kaplan sold Colloquy, which was a part of Kaplan corporate and other, for a gain of $18.9 million. In January 2015, Celtic contributed assets to a joint venture entered into with AHN in exchange for a 40% equity interest, resulting in the Company recording a $6.0 million gain (see Note 4). The Company used an income and market approach to value the equity interest. The measurement of the equity interest in the joint venture is classified as a Level 3 fair value assessment due to the significance of unobservable inputs developed in the determination of the fair value. |
Accumulated Other Comprehensive Income (Loss) |
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Accumulated Other Comprehensive Income (Loss), Net of Tax [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Accumulated Other Comprehensive Income (Loss) | ACCUMULATED OTHER COMPREHENSIVE INCOME (LOSS) The other comprehensive income (loss) consists of the following components:
The accumulated balances related to each component of other comprehensive income (loss) are as follows:
The amounts and line items of reclassifications out of Accumulated Other Comprehensive Income (Loss) are as follows:
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Contingencies |
3 Months Ended |
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Mar. 31, 2016 | |
Commitments and Contingencies Disclosure [Abstract] | |
Contingencies | CONTINGENCIES Litigation and Legal Matters. The Company and its subsidiaries are involved in various legal proceedings that arise in the ordinary course of its business. Although the outcomes of the legal claims and proceedings against the Company cannot be predicted with certainty, based on currently available information, management believes that there are no existing claims or proceedings that are likely to have a material effect on the Company's business, financial condition, results of operations or cash flows. Also, based on currently available information, management is of the opinion that the exposure to future material losses from existing legal proceedings is not reasonably possible, or that future material losses in excess of the amounts accrued are not reasonably possible. Certain Kaplan subsidiaries are subject to two unsealed cases filed by former employees that include, among other allegations, claims under the False Claims Act relating to eligibility for Title IV funding. The U.S. Government declined to intervene in all cases, and, as previously reported, court decisions either dismissed the cases in their entirety or narrowed the scope of their allegations. The two cases are captioned: United States of America ex rel. Carlos Urquilla-Diaz et al. v. Kaplan University et al. (unsealed March 25, 2008) and United States of America ex rel. Charles Jajdelski v. Kaplan Higher Education Corp. et al. (unsealed January 6, 2009). In August 2011, the U.S. District Court for the Southern District of Florida issued a series of rulings in the Diaz case, which included three separate complaints: Diaz, Wilcox and Gillespie. The court dismissed the Wilcox complaint in its entirety; dismissed all False Claims Act allegations in the Diaz complaint, leaving only an individual employment claim; and dismissed in part the Gillespie complaint, thereby limiting the scope and time frame of its False Claims Act allegations regarding compliance with the U.S. Federal Rehabilitation Act. In October 2012, the court entered summary judgment in favor of the Company as to the sole remaining employment claim in the Diaz complaint. In July 2013, the court likewise entered summary judgment in favor of the Company on all remaining claims in the Gillespie complaint. Diaz and Gillespie each appealed to the U.S. Court of Appeals for the Eleventh Judicial Court. Arguments on both appeals were heard In February 2015. In March 2015, the court issued a decision affirming the lower court's dismissal of all of Gillespie's claims and three of the four Diaz claims but reversing and remanding on one remaining claim alleging that incentive compensation for admissions representatives was improperly based on enrollment counts. Kaplan filed an answer to Diaz's amended complaint in September 2015 and a renewed motion to dismiss, and a hearing was held in December 2015. In March 2016, the Court denied the motion to dismiss and discovery is proceeding in the case. In February 2016, Gillespie filed a new motion with the District Court alleging that the Court improperly refused to consider a motion to vacate while the case was on appeal; Kaplan filed an opposition to this motion. In February 2016, Acquire Learning filed a statement of claim against Kaplan Australia and Kaplan Inc. in the Victorian Supreme Court, alleging breaches of warranty in connection with Acquire's September 2015 purchase of Franklyn Scholar from Kaplan Australia, and seeking payment under the indemnity provisions of the sale agreement. The alleged breaches of warranty relate to certain courses which were the subject of Victorian Government Department of Education and Training audits and subsequent repayment demands. Kaplan Australia filed its "Defence and Counterclaim" in April 2016, denying the allegations and bringing claims against Acquire. ED Program Reviews. ED has undertaken program reviews at various KHE locations. Currently, there are five open program reviews, four of which are at campuses that were formerly a part of the KHE Campuses business, including the ED’s final reports on the program reviews at KHE’s Broomall, PA, and Pittsburgh, PA, locations. Kaplan retains responsibility for any financial obligation resulting from the ED program reviews at the KHE Campuses business. On February 23, 2015, the ED began a review of Kaplan University. The review will assess Kaplan’s administration of its Title IV, HEA programs and will initially focus on the 2013 to 2014 and 2014 to 2015 award years. On December 17, 2015, Kaplan University received a notice from the ED that it had been placed on provisional certification status until September 30, 2018, in connection with the open and ongoing ED program review. The ED has not notified Kaplan University of any negative findings. However, at this time, Kaplan cannot predict the outcome of this review, when it will be completed or any liability or other limitations that the ED may place on Kaplan University as a result of this review. During the period of provisional certification, Kaplan University must obtain prior ED approval to open a new location, add an educational program, acquire another school or make any other significant change. The Company does not expect the open program reviews to have a material impact on KHE; however, the results of open program reviews and their impact on Kaplan’s operations are uncertain. |
Business Segments |
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Segment Reporting [Abstract] | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Business Segments | BUSINESS SEGMENTS The Company has four reportable segments: Kaplan Higher Education, Kaplan Test Preparation, Kaplan International and television broadcasting. The following table summarizes financial information related to each of the Company's business segments:
Asset information for the Company’s business segments are as follows:
The Company’s education division comprises the following operating segments:
Identifiable assets for the Company’s education division consist of the following:
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Organization, Basis of Presentation And Recent Accounting Pronouncements (Policies) |
3 Months Ended |
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Mar. 31, 2016 | |
Organization, Consolidation and Presentation of Financial Statements [Abstract] | |
Basis of Presentation | Basis of Presentation – The accompanying condensed consolidated financial statements have been prepared in accordance with: (i) generally accepted accounting principles in the United States of America (GAAP) for interim financial information; (ii) the instructions to Form 10-Q; and (iii) the guidance of Rule 10-01 of Regulation S-X under the Securities and Exchange Act of 1934, as amended, for financial statements required to be filed with the Securities and Exchange Commission (SEC). They include the assets, liabilities, results of operations and cash flows of the Company, including its domestic and foreign subsidiaries that are more than 50% owned or otherwise controlled by the Company. As permitted under such rules, certain notes and other financial information normally required by GAAP have been condensed or omitted. Management believes the accompanying condensed consolidated financial statements reflect all normal and recurring adjustments necessary for a fair statement of the Company’s financial position, results of operations, and cash flows as of and for the periods presented herein. The Company’s results of operations for the three months ended March 31, 2016 and 2015 may not be indicative of the Company’s future results. These condensed consolidated financial statements are unaudited and should be read in conjunction with the Company’s audited consolidated financial statements and the notes thereto included in the Company’s Annual Report on Form 10-K for the fiscal year ended December 31, 2015. The year-end condensed consolidated balance sheet data was derived from audited financial statements, but does not include all disclosures required by GAAP. Certain amounts in previously issued financial statements have been reclassified to conform to the current year presentation, which includes the reclassification of the results of operations of certain businesses as discontinued operations for all periods presented. |
Use of Estimates in the Preparation of the Condensed Consolidated Financial Statements | Use of Estimates in the Preparation of the Condensed Consolidated Financial Statements – The preparation of the condensed consolidated financial statements in conformity with GAAP requires management to make estimates and judgments that affect the amounts reported herein. Management bases its estimates and assumptions on historical experience and on various other factors that are believed to be reasonable under the circumstances. Due to the inherent uncertainty involved in making estimates, actual results reported in future periods may be affected by changes in those estimates. |
Recently Adopted and Issued Accounting Pronouncements | Recently Adopted and Issued Accounting Pronouncements – In May 2014, the Financial Accounting Standards Board (FASB) issued comprehensive new guidance that supersedes all existing revenue recognition guidance. In August 2015, the FASB issued an amendment to the guidance that defers the effective date by one year. The new guidance requires revenue to be recognized when the Company transfers promised goods or services to customers in an amount that reflects the consideration to which the Company expects to be entitled in exchange for those goods or services. The new guidance also significantly expands the disclosure requirements for revenue recognition. The guidance is effective for interim and fiscal years beginning after December 15, 2017. Early adoption is permitted only as of annual reporting periods beginning after December 15, 2016. The standard permits two implementation approaches, one requiring retrospective application of the new guidance with a restatement of prior years and one requiring prospective application of the new guidance with disclosure of results under the old guidance. The Company is in the process of evaluating the impact of this new guidance on its Condensed Consolidated Financial Statements and believes such evaluation will extend over several future periods because of the significance of the changes to the Company’s policies and business processes. In August 2014, the FASB issued new guidance that requires management to assess the Company’s ability to continue as a going concern and to provide related disclosures in certain circumstances. This guidance is effective for interim and fiscal years ending after December 15, 2016, with early adoption permitted. The Company does not expect this guidance to have an impact on its Condensed Consolidated Financial Statements. In April 2015, the FASB issued new guidance that simplifies the presentation of debt issuance costs. The new guidance requires that debt issuance costs be reported in the balance sheet as a direct deduction from the gross amount of debt instead of classified as a deferred asset. The guidance is effective for interim and fiscal years beginning after December 15, 2015. The Company adopted the new guidance retrospectively as of January 1, 2016. Therefore, prior periods have been adjusted to reflect this guidance which resulted in the reclassification of $0.1 million of unamortized debt issuance costs related to the Company's 7.25% unsecured notes from deferred charges and other assets to long-term debt within its Condensed Consolidated Balance Sheet as of December 31, 2015. In January 2016, the FASB issued new guidance that substantially revises the recognition, measurement and presentation of financial assets and financial liabilities. The new guidance, among other things, requires, (i) equity investments (except those accounted for under the equity method of accounting or those that result in consolidation of the investee) to be measured at fair value with changes in fair value recognized in net income, with some exceptions, (ii) simplifies the impairment assessment of equity investments without readily determinable fair values by requiring a qualitative assessment to identify impairment, (iii) requires public business entities to use the exit price notion when measuring the fair value of financial instruments for disclosure purposes, (iv) requires separate presentation of financial assets and financial liabilities by measurement category and form of financial asset on the balance sheet or the accompanying notes to the financial statements, and (v) clarifies that an entity should evaluate the need for a valuation allowance on a deferred tax asset related to available-for-sale securities in combination with the entity’s other deferred tax assets. The guidance is effective for interim and fiscal years beginning after December 15, 2017. Early adoption is not permitted. The Company is in the process of evaluating the impact of this new guidance on its Condensed Consolidated Financial Statements. In February 2016, the FASB issued new guidance that requires, among other things, a lessee to recognize a right-of-use asset representing an entity's right to use the underlying asset for the lease term and a liability for lease payments on its balance sheet, regardless of classification of a lease as operating or financing. For leases with a term of twelve months or less, a lessee is permitted to make an accounting policy election by class of underlying asset not to recognize lease assets and liabilities and account for the lease similar to existing guidance for operating leases today. This new guidance supersedes all prior guidance. The guidance is effective for interim and fiscal years beginning after December 15, 2018. Early adoption is permitted. The standard requires lessees and lessors to recognize and measure leases at the beginning of the earliest period presented using a modified retrospective approach. The Company is in the process of evaluating the impact of this new guidance on its Condensed Consolidated Financial Statements. In March 2016, the FASB issued new guidance that simplifies the accounting for stock-based compensation. The new guidance (i) requires all excess tax benefits and tax deficiencies to be recognized in the income statement with the tax effects of vested or exercised awards treated as discrete items. Additionally, excess tax benefits will be recognized regardless of whether the benefit reduces taxes payable in the current period, effectively eliminating the APIC pool, (ii) concludes excess tax benefits should be classified as an operating activity in the statement of cash flows, (iii) requires an entity to make an entity-wide accounting policy election to either estimate a forfeiture rate for awards or account for forfeitures as they occur, (iv) changes the threshold for equity classification for cash settlements of awards for withholding requirements to the maximum statutory tax rate in the applicable jurisdiction and (v) concludes cash paid by an employer when directly withholding shares for tax-withholding purposes should be classified as a financing activity in the statement of cash flows. The guidance is effective for interim and fiscal years beginning after December 15, 2016. Early adoption is permitted. The Company is in the process of evaluating the impact of this new guidance on its Condensed Consolidated Financial Statements. |
Discontinued Operations (Tables) |
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Mar. 31, 2016 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Income Statement, Balance Sheet and Additional Disclosures by Disposal Groups, Including Discontinued Operations [Line Items] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Summarized Discontinued Operations Information | The summarized income from discontinued operations, net of tax, is presented below:
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Cable Spin-Off [Member] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Income Statement, Balance Sheet and Additional Disclosures by Disposal Groups, Including Discontinued Operations [Line Items] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Discontinued Operations Cash Flows | Cash flows from Cable ONE are as follows:
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Investments (Tables) |
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Mar. 31, 2016 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Investments [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Investments in Marketable Equity Securities | Investments in marketable equity securities comprised the following:
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Acquisitions and Dispositions of Businesses (Tables) |
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Mar. 31, 2016 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Acqusitions and Dispositions [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Schedule of assets acquired and liabilities assumed | Acquisition-related costs were expensed as incurred and were not significant. The aggregate purchase price of these 2016 acquisitions was allocated as follows on a preliminary basis:
|
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Acquisition Pro Forma Financial Information [Table Text Block] | The following unaudited pro forma financial information presents the Company’s results as if the acquisitions had occurred at the beginning of 2015:
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Information related to Disposal Group Held for Sale | The revenue and operating losses related to schools that were sold as part of the ECA transaction are as follows:
|
Goodwill and Other Intangible Assets (Tables) |
3 Months Ended | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
Mar. 31, 2016 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Changes in Carrying Amount of Goodwill | The changes in the carrying amount of goodwill, by segment, were as follows:
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Other Intangible Assets | Other intangible assets consist of the following:
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Education [Member] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Changes in Carrying Amount of Goodwill | The changes in carrying amount of goodwill at the Company’s education division were as follows:
|
Debt (Tables) |
3 Months Ended | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
Mar. 31, 2016 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Debt Disclosure [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Components of Debt | The Company’s borrowings consist of the following:
____________
|
Fair Value Measurements (Tables) |
3 Months Ended | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
Mar. 31, 2016 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Fair Value Disclosures [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Schedule of Fair Value, Assets and Liabilities Measured on Recurring Basis | The Company’s financial assets and liabilities measured at fair value on a recurring basis were as follows:
____________
|
Earnings (Loss) Per Share (Tables) |
3 Months Ended | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
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Mar. 31, 2016 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Earnings Per Share [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Summary of Earnings Per Share from Continuing Operations, Basic and Diluted | The following reflects the Company's income (loss) from continuing operations and share data used in the basic and diluted earnings (loss) per share computations using the two-class method:
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Antidilutive Weighted Average Restricted Stock and Options | Diluted earnings (loss) per share excludes the following weighted average potential common shares, as the effect would be antidilutive, as computed under the treasury stock method:
|
Pension and Postretirement Plans (Tables) |
3 Months Ended | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
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Mar. 31, 2016 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Defined Benefit Pension Plan [Member] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Schedule of Net Benefit Costs | Defined Benefit Plans. The total benefit arising from the Company’s defined benefit pension plans, including a portion included in discontinued operations, consists of the following components:
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Schedule of Allocation of Plan Assets | The assets of the Company’s pension plan were allocated as follows:
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Supplemental Executive Retirement Plan (SERP) [Member] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Schedule of Net Benefit Costs | The total cost arising from the Company’s Supplemental Executive Retirement Plan (SERP), including a portion included in discontinued operations, consists of the following components:
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Other Postretirement Benefit Plan, Defined Benefit [Member] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Schedule of Net Benefit Costs | Other Postretirement Plans. The total cost arising from the Company’s other postretirement plans consists of the following components:
|
Other Non-Operating Income (Expense) (Tables) |
3 Months Ended | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
Mar. 31, 2016 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Other Nonoperating Income (Expense) [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Summary of Other Non-Operating (Expense) Income | A summary of non-operating income (expense) is as follows:
|
Accumulated Other Comprehensive Income (Loss) (Tables) |
3 Months Ended | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
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Mar. 31, 2016 | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Accumulated Other Comprehensive Income (Loss), Net of Tax [Abstract] | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Summary of Other Comprehensive (Loss) Income | The other comprehensive income (loss) consists of the following components:
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Summary of Changes in Accumulated Other Comprehensive (Loss) Income | The accumulated balances related to each component of other comprehensive income (loss) are as follows:
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Summary of Amounts and Line Items of reclassifications Out of Accumulated Other Comprehensive (Loss) Income | The amounts and line items of reclassifications out of Accumulated Other Comprehensive Income (Loss) are as follows:
|
Business Segments (Tables) |
3 Months Ended | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
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Mar. 31, 2016 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Segment Reporting Information [Line Items] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Summary of Segment Reporting Information, by Operating Segment | The following table summarizes financial information related to each of the Company's business segments:
Asset information for the Company’s business segments are as follows:
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Education [Member] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Segment Reporting Information [Line Items] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Summary of Segment Reporting Information, by Operating Segment | The Company’s education division comprises the following operating segments:
Identifiable assets for the Company’s education division consist of the following:
|
Organization, Basis of Presentation and Recent Accounting Pronouncements (Organization and Basis of Presentation) (Narrative) (Details) |
3 Months Ended |
---|---|
Mar. 31, 2016
TelevisionStation
| |
Percentage of ownership indicating control for consolidation purposes | more than 50% |
Television Broadcasting [Member] | |
Number of television broadcast stations | 5 |
Organization, Basis of Presentation and Recent Accounting Pronouncements (Recent Accounting Pronouncements) (Narrative) (Details) - USD ($) $ in Millions |
Mar. 31, 2016 |
Dec. 31, 2015 |
---|---|---|
7.25% Unsecured Notes due February 1, 2019 [Member] | ||
New Accounting Pronouncements or Change in Accounting Principle [Line Items] | ||
Unamortized debt issuance costs | $ 0.1 | $ 0.1 |
Debt Instrument, Interest Rate, Stated Percentage | 7.25% | 7.25% |
Deferred Charges and Other Assets [Member] | Accounting Standards Update 2015-03 [Member] | ||
New Accounting Pronouncements or Change in Accounting Principle [Line Items] | ||
Unamortized debt issuance costs | $ (0.1) | |
Long-term Debt [Member] | Accounting Standards Update 2015-03 [Member] | ||
New Accounting Pronouncements or Change in Accounting Principle [Line Items] | ||
Unamortized debt issuance costs | $ 0.1 |
Discontinued Operations (Narrative) (Details) $ in Thousands |
1 Months Ended | 3 Months Ended | |
---|---|---|---|
Jan. 31, 2015
USD ($)
school
|
Mar. 31, 2015
USD ($)
|
Sep. 30, 2014
school
|
|
Income Statement, Balance Sheet and Additional Disclosures by Disposal Groups, Including Discontinued Operations [Line Items] | |||
Pre-tax gain (loss) on sale and/or disposition | $ 732 | ||
Kaplan International [Member] | Kaplan China [Member] | |||
Income Statement, Balance Sheet and Additional Disclosures by Disposal Groups, Including Discontinued Operations [Line Items] | |||
Pre-tax gain (loss) on sale and/or disposition | $ (700) | ||
Kaplan International [Member] | Education [Member] | Kaplan China [Member] | |||
Income Statement, Balance Sheet and Additional Disclosures by Disposal Groups, Including Discontinued Operations [Line Items] | |||
Number of schools sold | school | 1 | 3 |
Discontinued Operations (Cash Flows from Discontinued Operations) (Details 1) - Cable Spin-Off [Member] $ in Thousands |
3 Months Ended |
---|---|
Mar. 31, 2015
USD ($)
| |
Income Statement, Balance Sheet and Additional Disclosures by Disposal Groups, Including Discontinued Operations [Line Items] | |
Net Cash Provided by Operating Activities, Discontinued Operations | $ 39,216 |
Net Cash Used in Investing Activities, Discontinued Operations | $ (37,409) |
Discontinued Operations (Summarized Income (Loss) from Discontinued Operations, Net Of Tax) (Details 2) - USD ($) $ in Thousands |
3 Months Ended | |
---|---|---|
Mar. 31, 2016 |
Mar. 31, 2015 |
|
Discontinued Operations and Disposal Groups [Abstract] | ||
Operating revenues | $ 198,723 | |
Operating costs and expenses | (161,031) | |
Operating income | 37,692 | |
Non-operating expense | (19) | |
Income from discontinued operations | 37,673 | |
Provision for income taxes | 13,600 | |
Net Income from Discontinued Operations | 24,073 | |
Loss on sale of discontinued operations | (732) | |
Provision for income taxes on disposition of discontinued operations | 52 | |
Income from Discontinued Operations, Net of Tax | $ 0 | $ 23,289 |
Investments (Investments in Marketable Equity Securities) (Details 1) - USD ($) $ in Thousands |
Mar. 31, 2016 |
Dec. 31, 2015 |
---|---|---|
Investments [Abstract] | ||
Total cost | $ 261,662 | $ 253,062 |
Gross unrealized gains | 100,508 | 97,741 |
Gross unrealized losses | (4,419) | (240) |
Total Fair Value | $ 357,751 | $ 350,563 |
Acquisitions and Dispositions of Businesses (Pro Forma Financials) (Details 2) - USD ($) $ in Thousands |
3 Months Ended | |
---|---|---|
Mar. 31, 2016 |
Mar. 31, 2015 |
|
Acquisitions And Dispositions [Abstract] | ||
Pro Forma Operating revenues | $ 601,919 | $ 700,310 |
Pro Forma Net income (loss) | $ 40,092 | $ 25,574 |
Acquisitions and Dispositions of Businesses (Significant Component) (Details 3) $ in Thousands |
3 Months Ended |
---|---|
Mar. 31, 2015
USD ($)
| |
Acqusitions and Dispositions [Abstract] | |
Disposal Group, Not Discontinued Operation, Revenue | $ 61,087 |
Disposal Group, Not Discontinued Operation, Operating Loss | $ (3,014) |
Goodwill and Other Intangible Assets (Intangible Assets) (Narrative) (Details) - USD ($) $ in Thousands |
3 Months Ended | |
---|---|---|
Mar. 31, 2016 |
Mar. 31, 2015 |
|
Amortization of Intangible Assets | ||
Amortization of intangible assets | $ 6,262 | $ 4,738 |
Estimated amortization of intangible assets, remainder of 2016 | 19,000 | |
Estimated amortization of intangible assets, 2017 | 21,000 | |
Estimated amortization of intangible assets, 2018 | 19,000 | |
Estimated amortization of intangible assets, 2019 | 17,000 | |
Estimated amortization of intangible assets, 2020 | 15,000 | |
Estimated amortization of intangible assets, after 2020 | $ 16,000 |
Debt (Details 1) - USD ($) $ in Thousands |
Mar. 31, 2016 |
Dec. 31, 2015 |
||
---|---|---|---|---|
Debt Instrument [Line Items] | ||||
Other indebtedness | $ 1,204 | $ 1,204 | ||
Total Debt | 399,914 | 399,800 | ||
Total Long-Term Debt | 399,914 | 399,800 | ||
7.25% Unsecured Notes due February 1, 2019 [Member] | ||||
Debt Instrument [Line Items] | ||||
Unsecured notes | [1] | $ 398,710 | $ 398,596 | |
Debt Instrument, Interest Rate, Stated Percentage | 7.25% | 7.25% | ||
Unamortized debt issuance costs | $ 100 | $ 100 | ||
|
Fair Value Measurements (Details 1) - USD ($) $ in Thousands |
Mar. 31, 2016 |
Dec. 31, 2015 |
|||||||||||
---|---|---|---|---|---|---|---|---|---|---|---|---|---|
Assets | |||||||||||||
Marketable equity securities | $ 357,751 | $ 350,563 | |||||||||||
7.25% Unsecured Notes due February 1, 2019 [Member] | |||||||||||||
Liabilities | |||||||||||||
Debt instrument | 433,100 | 436,600 | |||||||||||
Fair Value, Measurements, Recurring [Member] | |||||||||||||
Assets | |||||||||||||
Money market investments | [1] | 295,407 | 433,040 | ||||||||||
Commercial paper | [2] | 99,852 | |||||||||||
Marketable equity securities | [3] | 357,751 | 350,563 | ||||||||||
Other current investments | [4] | 26,424 | 28,882 | ||||||||||
Total Financial Assets | 779,434 | 812,485 | |||||||||||
Liabilities | |||||||||||||
Deferred compensation plan liabilities | [5] | 45,138 | 48,055 | ||||||||||
Fair Value, Measurements, Recurring [Member] | Level 1 [Member] | |||||||||||||
Assets | |||||||||||||
Money market investments | [1] | 0 | 0 | ||||||||||
Commercial paper | [2] | 99,852 | |||||||||||
Marketable equity securities | [3] | 357,751 | 350,563 | ||||||||||
Other current investments | [4] | 8,222 | 12,822 | ||||||||||
Total Financial Assets | 465,825 | 363,385 | |||||||||||
Liabilities | |||||||||||||
Deferred compensation plan liabilities | [5] | 0 | 0 | ||||||||||
Fair Value, Measurements, Recurring [Member] | Level 2 [Member] | |||||||||||||
Assets | |||||||||||||
Money market investments | [1] | 295,407 | 433,040 | ||||||||||
Commercial paper | [2] | 0 | |||||||||||
Marketable equity securities | [3] | 0 | 0 | ||||||||||
Other current investments | [4] | 18,202 | 16,060 | ||||||||||
Total Financial Assets | 313,609 | 449,100 | |||||||||||
Liabilities | |||||||||||||
Deferred compensation plan liabilities | [5] | $ 45,138 | $ 48,055 | ||||||||||
|
Earnings (Loss) Per Share (Narrative) (Details) - $ / shares |
3 Months Ended | |
---|---|---|
Mar. 31, 2016 |
Mar. 31, 2015 |
|
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||
Dividends declared per common share | $ 2.42 | $ 5.3 |
Stock Option Plan [Member] | ||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||
Antidilutive securities, shares | 102,000 | 50,000 |
Restricted Stock Awards [Member] | ||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||
Antidilutive securities, shares | 6,100 | 5,850 |
Earnings (Loss) Per Share (Details 1) - USD ($) $ / shares in Units, shares in Thousands, $ in Thousands |
3 Months Ended | |
---|---|---|
Mar. 31, 2016 |
Mar. 31, 2015 |
|
Schedule of Earnings Per Share, Basic and Diluted, Including Two Class Method [Line Items] | ||
Income (loss) from continuing operations attributable to Graham Holdings Company common stockholders | $ 37,780 | $ (2,683) |
Less: Dividends paid-common stock outstanding and unvested restricted shares | (13,758) | (30,870) |
Undistributed earnings (loss) | $ 24,022 | $ (33,553) |
Percent allocated to common stockholders | 98.64% | 100.00% |
Undistributed Earnings (Loss) Allocated To Common Stockholders | $ 23,695 | $ (33,553) |
Add: Dividends paid-common stock outstanding | 13,574 | 30,228 |
Numerator for basic earnings (loss) per share | 37,269 | (3,325) |
Add: Additional undistributed earnings due to dilutive stock options | 2 | 0 |
Numerator for diluted earnings (loss) per share | $ 37,271 | $ (3,325) |
Weighted average shares outstanding (shares) | 5,623 | 5,704 |
Denominator for diluted earnings (loss) per share (shares) | 5,652 | 5,704 |
Graham Holdings Company Common Stockholders: | ||
Basic income (loss) per common share from continuing operations in dollars per share | $ 6.63 | $ (0.58) |
Diluted income (loss) per common share from continuing operations in dollars per share | $ 6.59 | $ (0.58) |
Stock Option Plan [Member] | ||
Schedule of Earnings Per Share, Basic and Diluted, Including Two Class Method [Line Items] | ||
Add: Effect of dilutive stock options (shares) | 29 | 0 |
Earnings (Loss) Per Share Earnings (Loss) Per Share (Details 2) - shares shares in Thousands |
3 Months Ended | |
---|---|---|
Mar. 31, 2016 |
Mar. 31, 2015 |
|
Earnings Per Share [Abstract] | ||
Weighted average restricted stock | 38 | 54 |
Weighted average stock options | 0 | 33 |
Pension and Postretirement Plans (Narrative) (Details) |
3 Months Ended | 12 Months Ended | ||
---|---|---|---|---|
Jun. 30, 2016 |
Mar. 31, 2016
USD ($)
Investment
companies
|
Mar. 31, 2015
USD ($)
|
Dec. 31, 2015
USD ($)
Investment
|
|
Retirement Benefits Disclosure [Line Items] | ||||
Net Periodic Cost (Benefit) | $ (12,059,000) | $ (11,432,000) | ||
Defined Benefit Pension Plan [Member] | ||||
Retirement Benefits Disclosure [Line Items] | ||||
Net Periodic Cost (Benefit) | $ (12,059,000) | (11,432,000) | ||
Number of investment companies actively managing plan assets | companies | 2 | |||
Amount of plan assets managed internally by the company | $ 0 | |||
Percentage of total plan assets | 100.00% | 100.00% | ||
Defined Benefit Pension Plan [Member] | Scenario, Forecast [Member] | ||||
Retirement Benefits Disclosure [Line Items] | ||||
Percent of plan assets managed internally by the company | 44.00% | |||
Percent of plan assets managed by investment companies | 56.00% | |||
Defined Benefit Pension Plan [Member] | Discontinued Operations [Member] | ||||
Retirement Benefits Disclosure [Line Items] | ||||
Net Periodic Cost (Benefit) | 1,000,000 | |||
Supplemental Executive Retirement Plan (SERP) [Member] | ||||
Retirement Benefits Disclosure [Line Items] | ||||
Net Periodic Cost (Benefit) | $ 2,121,000 | 2,636,000 | ||
Supplemental Executive Retirement Plan (SERP) [Member] | Discontinued Operations [Member] | ||||
Retirement Benefits Disclosure [Line Items] | ||||
Net Periodic Cost (Benefit) | 100,000 | |||
Other Postretirement Plans [Member] | ||||
Retirement Benefits Disclosure [Line Items] | ||||
Net Periodic Cost (Benefit) | $ 195,000 | $ 283,000 | ||
Berkshire Hathaway Common Stock [Member] | Defined Benefit Pension Plan [Member] | ||||
Retirement Benefits Disclosure [Line Items] | ||||
Defined benefit plan, target allocation maximum percentage of assets, singular equity security, without prior approval by plan administrator | 20.00% | |||
Single Equity Concentration [Member] | Defined Benefit Pension Plan [Member] | ||||
Retirement Benefits Disclosure [Line Items] | ||||
Defined benefit plan, target allocation maximum percentage of assets, singular equity security, without prior approval by plan administrator | 10.00% | |||
Value of investments | $ 250,100,000 | $ 562,600,000 | ||
Percentage of total plan assets | 12.00% | 25.00% | ||
Number of investments the company's pension plan held which individually exceed 10% of total plan assets | Investment | 1 | 2 | ||
Foreign Investments [Member] | Defined Benefit Pension Plan [Member] | ||||
Retirement Benefits Disclosure [Line Items] | ||||
Defined benefit plan, target allocation maximum percentage of assets, equity securities | 24.00% | |||
Fixed income securities [Member] | Defined Benefit Pension Plan [Member] | ||||
Retirement Benefits Disclosure [Line Items] | ||||
Defined benefit plan, target allocation percentage of assets, fixed-income securities, range minimum | 10.00% | |||
Concentration In Single Entity, Type Of Industry, Foreign Country Or Individual Fund [Member] | Defined Benefit Plan Assets Total [Member] | Defined Benefit Pension Plan [Member] | ||||
Retirement Benefits Disclosure [Line Items] | ||||
Minimum percentage of plan assets considered as significant concentrations in pension plans | 10.00% | 10.00% | ||
Geographic Concentration [Member] | Foreign Investments [Member] | Defined Benefit Pension Plan [Member] | ||||
Retirement Benefits Disclosure [Line Items] | ||||
Value of investments | $ 332,400,000 | |||
Percentage of total plan assets | 15.00% | |||
Number of foreign countries for which the companys pension plan holds investments that exceed 10% of total plan assets | Investment | 1 |
Pension and Postretirement Plans (Total Benefit/Cost) (Details 1) - USD ($) $ in Thousands |
3 Months Ended | |
---|---|---|
Mar. 31, 2016 |
Mar. 31, 2015 |
|
Defined Benefit Plan Disclosure [Line Items] | ||
Net Periodic Cost (Benefit) | $ (12,059) | $ (11,432) |
Total Cost (Benefit) | (12,059) | (12,407) |
Defined Benefit Pension Plan [Member] | ||
Defined Benefit Plan Disclosure [Line Items] | ||
Service cost | 5,342 | 7,252 |
Interest cost | 13,073 | 12,780 |
Expected return on assets | (30,548) | (31,545) |
Amortization of prior service cost (credit) | 74 | 81 |
Net Periodic Cost (Benefit) | (12,059) | (11,432) |
Supplemental Executive Retirement Plan (SERP) [Member] | ||
Defined Benefit Plan Disclosure [Line Items] | ||
Service cost | 246 | 509 |
Interest cost | 1,096 | 1,135 |
Amortization of prior service cost (credit) | 114 | 114 |
Recognized actuarial loss (gain) | 665 | 878 |
Net Periodic Cost (Benefit) | 2,121 | 2,636 |
Other Postretirement Plans [Member] | ||
Defined Benefit Plan Disclosure [Line Items] | ||
Service cost | 346 | 333 |
Interest cost | 308 | 325 |
Amortization of prior service cost (credit) | (84) | (126) |
Recognized actuarial loss (gain) | (375) | (249) |
Net Periodic Cost (Benefit) | $ 195 | $ 283 |
Pension and Postretirement Plans (Asset Allocation) (Details 2) - Defined Benefit Pension Plans [Member] |
Mar. 31, 2016 |
Dec. 31, 2015 |
---|---|---|
Defined Benefit Plan Disclosure [Line Items] | ||
Defined Benefit Plan Assets Allocation (Percent) | 100.00% | 100.00% |
Equity Securities [Member] | U.S. | ||
Defined Benefit Plan Disclosure [Line Items] | ||
Defined Benefit Plan Assets Allocation (Percent) | 68.00% | 62.00% |
Equity Securities [Member] | International [Member] | ||
Defined Benefit Plan Disclosure [Line Items] | ||
Defined Benefit Plan Assets Allocation (Percent) | 15.00% | 25.00% |
Fixed income securities [Member] | U.S. | ||
Defined Benefit Plan Disclosure [Line Items] | ||
Defined Benefit Plan Assets Allocation (Percent) | 17.00% | 13.00% |
Other Non-Operating Income (Expense) (Narrative) (Details) - USD ($) $ in Thousands |
1 Months Ended | 3 Months Ended | |
---|---|---|---|
Jan. 31, 2015 |
Mar. 31, 2016 |
Mar. 31, 2015 |
|
Schedule of Non-Operating Income (Expense) [Line Items] | |||
Gain on sale of a business | $ 18,931 | $ 0 | |
Gain on Celtic joint venture transaction | $ 0 | $ 5,972 | |
Celtic Healthcare Inc [Member] | Celtic Healthcare Allegheny Health Network Joint Venture [Member] | |||
Schedule of Non-Operating Income (Expense) [Line Items] | |||
Gain on Celtic joint venture transaction | $ 6,000 | ||
Celtic Healthcare Allegheny Health Network Joint Venture [Member] | Celtic Healthcare Inc [Member] | |||
Schedule of Non-Operating Income (Expense) [Line Items] | |||
Equity Method Investment, Ownership Percentage | 40.00% | 40.00% | |
Kaplan Corporate and Other [Member] | Education [Member] | Colloquy [Member] | |||
Schedule of Non-Operating Income (Expense) [Line Items] | |||
Gain on sale of a business | $ 18,900 |
Other Non-Operating Income (Expense) (Details 1) - USD ($) $ in Thousands |
3 Months Ended | |
---|---|---|
Mar. 31, 2016 |
Mar. 31, 2015 |
|
Schedule of Non-Operating Income (Expense) [Line Items] | ||
Gain on sale of a business | $ 18,931 | $ 0 |
Foreign currency loss, net | (5,443) | (6,827) |
Gain on formation of joint venture | 0 | 5,972 |
Gain on sale of marketable equity securities | 1,754 | 0 |
Other, net | (146) | (250) |
Total Other Non-Operating Income (Expense) | $ 15,096 | $ (1,105) |
Accumulated Other Comprehensive Income (Loss) (Components of OCI) (Details 1) - USD ($) $ in Thousands |
3 Months Ended | |
---|---|---|
Mar. 31, 2016 |
Mar. 31, 2015 |
|
Foreign currency translation adjustments: | ||
Translation adjustments arising during the period, before tax | $ 3,845 | $ (12,088) |
Translation adjustments arising during the period, income tax | 0 | 0 |
Translation adjustments arising during the period, after tax | 3,845 | (12,088) |
Adjustment for sale of a business with foreign operations, before tax | 0 | (41) |
Adjustment for sale of a business with foreign operations, income tax | 0 | 0 |
Adjustment for sale of a business with foreign operations, after tax | 0 | (41) |
Total foreign currency translation adjustments, before tax | 3,845 | (12,129) |
Total foreign currency translation adjustments, income tax | 0 | 0 |
Total foreign currency translation adjustments, after tax | 3,845 | (12,129) |
Unrealized (losses) gains on available-for-sale securities: | ||
Unrealized gains (losses) for the period, before tax | 343 | (8,878) |
Unrealized gains (losses) for the period, tax | (137) | 3,552 |
Unrealized gains (losses) for the period, after tax | 206 | (5,326) |
Reclassification adjustment for realization of gain on sale of available-for-sale securities included in net income, before tax | (1,754) | 0 |
Reclassification adjustment for realization of gain on sale of available-for-sale securities included in net income, income tax | 701 | 0 |
Reclassification adjustment for realization of gain on sale of available-for-sale securities included in net income, after tax | (1,053) | 0 |
Total unrealized gains (losses) on available-for-sale securities, before tax | (1,411) | (8,878) |
Total unrealized gains (losses) on available-for-sale securities, income tax | 564 | 3,552 |
Total unrealized gains (losses) on available-for-sale securities, after tax | (847) | (5,326) |
Pension and other postretirement plans: | ||
Amortization of net prior service cost included in net income | 104 | 69 |
Amortization of net prior service cost included in net income, income tax | (41) | (27) |
Amortization of net prior service cost included in net income, after tax | 63 | 42 |
Amortization of net actuarial gain included in net income, before tax | 290 | 629 |
Amortization of net actuarial gain included in net income, income tax | (116) | (252) |
Amortization of net actuarial gain included in net income, after tax | 174 | 377 |
Total pension and other postretirement plans, before tax | 394 | 698 |
Total pension and other postretirement plans, income tax | (157) | (279) |
Total pension and other postretirement plans, after tax | 237 | 419 |
Cash flow hedge: | ||
Gain for the period, before tax | 0 | 179 |
Gain for the period, income tax | 0 | (71) |
Gain for the period, after tax | 0 | 108 |
Other Comprehensive Income (Loss), before tax | 2,828 | (20,130) |
Other Comprehensive Income (Loss), income tax | 407 | 3,202 |
Other Comprehensive Income (Loss), after tax | $ 3,235 | $ (16,928) |
Accumulated Other Comprehensive Income (Loss) (AOCI balances) (Details 2) - USD ($) $ in Thousands |
3 Months Ended | |
---|---|---|
Mar. 31, 2016 |
Mar. 31, 2015 |
|
AOCI Including Portion Attributable to Noncontrolling Interest, Net of Tax [Roll Forward] | ||
Accumulated Other Comprehensive Income, beginning balance | $ 314,680 | |
Other comprehensive income before reclassifications | 4,051 | |
Net amount reclassified from accumulated other comprehensive income | (816) | |
Other Comprehensive Income (Loss), Net of Tax | 3,235 | $ (16,928) |
Accumulated Other Comprehensive Income, ending balance | 317,915 | |
Cumulative Foreign Currency Translation Adjustment [Member] | ||
AOCI Including Portion Attributable to Noncontrolling Interest, Net of Tax [Roll Forward] | ||
Accumulated Other Comprehensive Income, beginning balance | (4,849) | |
Other comprehensive income before reclassifications | 3,845 | |
Net amount reclassified from accumulated other comprehensive income | 0 | |
Other Comprehensive Income (Loss), Net of Tax | 3,845 | |
Accumulated Other Comprehensive Income, ending balance | (1,004) | |
Unrealized Gain on Available-for-Sale Securities [Member] | ||
AOCI Including Portion Attributable to Noncontrolling Interest, Net of Tax [Roll Forward] | ||
Accumulated Other Comprehensive Income, beginning balance | 58,500 | |
Other comprehensive income before reclassifications | 206 | |
Net amount reclassified from accumulated other comprehensive income | (1,053) | |
Other Comprehensive Income (Loss), Net of Tax | (847) | |
Accumulated Other Comprehensive Income, ending balance | 57,653 | |
Unrealized Gain on Pensions and Other Postretirement Plans [Member] | ||
AOCI Including Portion Attributable to Noncontrolling Interest, Net of Tax [Roll Forward] | ||
Accumulated Other Comprehensive Income, beginning balance | 261,029 | |
Other comprehensive income before reclassifications | 0 | |
Net amount reclassified from accumulated other comprehensive income | 237 | |
Other Comprehensive Income (Loss), Net of Tax | 237 | |
Accumulated Other Comprehensive Income, ending balance | $ 261,266 |
Accumulated Other Comprehensive Income (Loss) (Reclassifications out of AOCI) (Details 3) - USD ($) $ in Thousands |
3 Months Ended | ||||
---|---|---|---|---|---|
Mar. 31, 2016 |
Mar. 31, 2015 |
||||
Reclassification Adjustment Out Of Accumulated Other Comprehensive Income [Line Items] | |||||
Income from Discontinued Operations, Net of Tax | $ 0 | $ (23,289) | |||
Other income (expense), net | (15,096) | 1,105 | |||
Amortization of net prior service cost included in net income | 104 | 69 | |||
Amortization of net actuarial gain included in net income | 290 | 629 | |||
Income Before Tax | (60,615) | 589 | |||
Interest expense | 7,948 | 8,501 | |||
Provision for Income Taxes | 22,400 | 900 | |||
Income Net of Tax | (38,215) | 1,489 | |||
Reclassification out of Accumulated Other Comprehensive Income [Member] | |||||
Reclassification Adjustment Out Of Accumulated Other Comprehensive Income [Line Items] | |||||
Income Net of Tax | (816) | 457 | |||
Foreign Currency Translation Adjustment [Member] | Reclassification out of Accumulated Other Comprehensive Income [Member] | |||||
Reclassification Adjustment Out Of Accumulated Other Comprehensive Income [Line Items] | |||||
Income from Discontinued Operations, Net of Tax | 0 | (41) | |||
Unrealized Gain on Available-for-Sale Securities [Member] | Reclassification out of Accumulated Other Comprehensive Income [Member] | |||||
Reclassification Adjustment Out Of Accumulated Other Comprehensive Income [Line Items] | |||||
Other income (expense), net | (1,754) | 0 | |||
Provision for Income Taxes | 701 | 0 | |||
Income Net of Tax | (1,053) | 0 | |||
Pension and Other Postretirement Plans [Member] | |||||
Reclassification Adjustment Out Of Accumulated Other Comprehensive Income [Line Items] | |||||
Amortization of net prior service cost included in net income | [1] | 104 | 69 | ||
Amortization of net actuarial gain included in net income | [1] | 290 | 629 | ||
Pension and Other Postretirement Plans [Member] | Reclassification out of Accumulated Other Comprehensive Income [Member] | |||||
Reclassification Adjustment Out Of Accumulated Other Comprehensive Income [Line Items] | |||||
Income Before Tax | 394 | 698 | |||
Provision for Income Taxes | (157) | (279) | |||
Income Net of Tax | 237 | 419 | |||
Cash Flow Hedge [Member] | Reclassification out of Accumulated Other Comprehensive Income [Member] | |||||
Reclassification Adjustment Out Of Accumulated Other Comprehensive Income [Line Items] | |||||
Interest expense | 0 | 132 | |||
Provision for Income Taxes | 0 | (53) | |||
Income Net of Tax | $ 0 | $ 79 | |||
|
Contingencies (Details) |
1 Months Ended | 3 Months Ended | |
---|---|---|---|
Mar. 31, 2015
claim
|
Aug. 31, 2011
claim
Complaint
|
Mar. 31, 2016
claim
Case
program_review
|
|
Loss Contingencies [Line Items] | |||
Number of existing legal claims or proceedings that are likely to have a material effect on the Company's business | 0 | ||
Title IV participating institutions including Broomall PA and Pittsburgh PA [Member] | Higher Education [Member] | |||
Loss Contingencies [Line Items] | |||
Number of pending program reviews | program_review | 5 | ||
Title IV participating institutions including Broomall PA and Pittsburgh PA [Member] | Higher Education [Member] | Sale of KHE Campuses business [Member] | |||
Loss Contingencies [Line Items] | |||
Number of pending program reviews | program_review | 4 | ||
Diaz Case [Member] | Education [Member] | |||
Loss Contingencies [Line Items] | |||
Separate complaints included In Diaz Case received rulings | Complaint | 3 | ||
Number of allegations not dismissed | 1 | ||
Diaz Claims [Member] | Education [Member] | |||
Loss Contingencies [Line Items] | |||
Number of claims affirmed for dismissal by US Court of Appeal | 3 | ||
Number of claims appealed | 4 | ||
Number of claims revered and remanded by US Court of Appeal | 1 | ||
Urquilla-Diaz And Jajdelski Case [Member] | Education [Member] | |||
Loss Contingencies [Line Items] | |||
Number of unsealed cases filed by former employees under the U.S. Federal False Claims Act | Case | 2 |
Business Segments (Narrative) (Details) |
3 Months Ended |
---|---|
Mar. 31, 2016
Segment
| |
Business Segments [Line Items] | |
Number of reportable segments | 4 |
Business Segments (Information by Operating Segment) (Details 1) - USD ($) $ in Thousands |
3 Months Ended | ||
---|---|---|---|
Mar. 31, 2016 |
Mar. 31, 2015 |
Dec. 31, 2015 |
|
Segment Reporting Information [Line Items] | |||
Operating Revenues | $ 601,740 | $ 647,425 | |
Income (Loss) from Operations | 51,872 | 8,862 | |
Equity in earnings (losses) of affiliates, net | 1,004 | (404) | |
Interest Expense, Net | (7,357) | (7,942) | |
Other income (expense), net | 15,096 | (1,105) | |
Income (loss) from Continuing Operations Before Income Taxes | 60,615 | (589) | |
Depreciation of property, plant and equipment | 16,761 | 22,197 | |
Amortization of intangible assets | 6,262 | 4,738 | |
Net Pension (Credit) Expense | (12,059) | (12,407) | |
Identifiable Assets | 2,902,089 | $ 2,963,063 | |
Investments in Marketable Equity Securities | 357,751 | 350,563 | |
Investments in Affiliates | 60,582 | 59,229 | |
Prepaid Pension Cost | 992,103 | 979,970 | |
Total Assets | 4,312,525 | 4,352,825 | |
Operating Segments [Member] | Education [Member] | |||
Segment Reporting Information [Line Items] | |||
Operating Revenues | 401,076 | 500,602 | |
Income (Loss) from Operations | 14,488 | (22,849) | |
Depreciation of property, plant and equipment | 11,103 | 18,528 | |
Amortization of intangible assets | 1,681 | 1,507 | |
Net Pension (Credit) Expense | 3,109 | 3,947 | |
Identifiable Assets | 1,419,547 | 1,454,520 | |
Operating Segments [Member] | Education [Member] | Reportable Subsegments [Member] | Higher Education [Member] | |||
Segment Reporting Information [Line Items] | |||
Operating Revenues | 165,549 | 237,568 | |
Income (Loss) from Operations | 21,306 | 593 | |
Depreciation of property, plant and equipment | 4,175 | 4,828 | |
Net Pension (Credit) Expense | 1,905 | 2,532 | |
Identifiable Assets | 238,885 | 447,282 | |
Operating Segments [Member] | Education [Member] | Reportable Subsegments [Member] | Test Preparation [Member] | |||
Segment Reporting Information [Line Items] | |||
Operating Revenues | 66,462 | 69,226 | |
Income (Loss) from Operations | (2,310) | (4,334) | |
Depreciation of property, plant and equipment | 1,781 | 2,890 | |
Net Pension (Credit) Expense | 768 | 775 | |
Identifiable Assets | 142,501 | 134,535 | |
Operating Segments [Member] | Education [Member] | Reportable Subsegments [Member] | Kaplan International [Member] | |||
Segment Reporting Information [Line Items] | |||
Operating Revenues | 169,287 | 192,081 | |
Income (Loss) from Operations | 4,897 | 7,717 | |
Depreciation of property, plant and equipment | 5,060 | 4,654 | |
Net Pension (Credit) Expense | 67 | 106 | |
Identifiable Assets | 990,326 | 826,475 | |
Operating Segments [Member] | Education [Member] | Reportable Subsegments [Member] | Kaplan Corporate and Other [Member] | |||
Segment Reporting Information [Line Items] | |||
Operating Revenues | 125 | 1,859 | |
Income (Loss) from Operations | (9,405) | (26,857) | |
Depreciation of property, plant and equipment | 87 | 6,156 | |
Net Pension (Credit) Expense | 369 | 534 | |
Identifiable Assets | 47,835 | 46,228 | |
Operating Segments [Member] | Education [Member] | Intersubsegment Eliminations [Member] | |||
Segment Reporting Information [Line Items] | |||
Operating Revenues | (347) | (132) | |
Income (Loss) from Operations | 0 | 32 | |
Operating Segments [Member] | Television Broadcasting [Member] | |||
Segment Reporting Information [Line Items] | |||
Operating Revenues | 92,018 | 83,564 | |
Income (Loss) from Operations | 41,220 | 38,562 | |
Depreciation of property, plant and equipment | 2,377 | 2,109 | |
Amortization of intangible assets | 63 | 63 | |
Net Pension (Credit) Expense | 439 | 391 | |
Identifiable Assets | 310,055 | 312,243 | |
Operating Segments [Member] | Other Businesses [Member] | |||
Segment Reporting Information [Line Items] | |||
Operating Revenues | 108,716 | 63,259 | |
Income (Loss) from Operations | (5,730) | (5,162) | |
Depreciation of property, plant and equipment | 3,027 | 1,302 | |
Amortization of intangible assets | 4,518 | 3,168 | |
Net Pension (Credit) Expense | 254 | 193 | |
Identifiable Assets | 697,543 | 712,161 | |
Operating Segments [Member] | Corporate Office [Member] | |||
Segment Reporting Information [Line Items] | |||
Operating Revenues | 0 | 0 | |
Income (Loss) from Operations | 1,894 | (1,689) | |
Depreciation of property, plant and equipment | 254 | 258 | |
Amortization of intangible assets | 0 | 0 | |
Net Pension (Credit) Expense | (15,861) | (16,938) | |
Identifiable Assets | 474,944 | $ 484,139 | |
Intersegment Elimination [Member] | |||
Segment Reporting Information [Line Items] | |||
Operating Revenues | $ (70) | $ 0 |
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