Delaware | 1-6714 | 53-0182885 |
(State or other jurisdiction of incorporation) | (Commission File Number) | (I.R.S. Employer Identification No.) |
1300 North 17th Street, Arlington, Virginia | 22209 | |
(Address of principal executive offices) | (Zip Code) |
• | Note 1 - Organization and Nature of Operations |
• | Note 2 - Summary of Significant Accounting Policies, only under the caption of “Recently Adopted and Issued Accounting Pronouncements” |
• | Note 3 - Acquisitions and Dispositions of Businesses |
• | Note 9 - Goodwill and Other Intangible Assets |
• | Note 15 - Pensions and Other Postretirement Plans |
• | Note 20 - Business Segments |
• | Note 21 - Summary of Quarterly Operating Results and Comprehensive Income (Unaudited) |
Exhibit Number | Description | |
23 | Consent of independent registered public accounting firm. | |
99.1 | Updates, where applicable, to Part 1, Item 1. Business, from Graham Holdings Company's Annual Report on Form 10-K for the year ended December 31, 2017, as filed with the Securities and Exchange Commission on February 23, 2018. | |
99.2 | Updates, where applicable, to Part II, Item 7. Management’s Discussion and Analysis of Financial Condition and Results of Operations and Item 8. Financial Statements and Supplementary Data, from Graham Holdings Company's Annual Report on Form 10-K for the year ended December 31, 2017, as filed with the Securities and Exchange Commission on February 23, 2018. | |
101 | The following updated financial information from Graham Holdings Company Annual Report on Form 10-K for the year ended December 31, 2017, formatted in Extensible Business Reporting Language (XBRL): (i) Consolidated Statements of Operations for the years ended December 31, 2017, 2016 and 2015; (ii) Consolidated Statements of Comprehensive Income for the years ended December 31, 2017, 2016 and 2015; (iii) Consolidated Balance Sheets as of December 31, 2017 and 2016; (iv) Consolidated Statements of Cash Flows for the years ended December 31, 2017, 2016 and 2015; (v) Consolidated Statements of Changes in Common Shareholders’ Equity for the years ended December 31, 2017, 2016 and 2015; and (vi) Notes to Consolidated Financial Statements. | |
Graham Holdings Company | ||
(Registrant) | ||
Date: May 21, 2018 | /s/ Wallace R. Cooney | |
Wallace R. Cooney, Chief Financial Officer (Principal Financial Officer) |
Exhibit Number | Description | |
23 | ||
99.1 | ||
99.2 | ||
101 | The following updated financial information from Graham Holdings Company Annual Report on Form 10-K for the year ended December 31, 2017, formatted in Extensible Business Reporting Language (XBRL): (i) Consolidated Statements of Operations for the years ended December 31, 2017, 2016 and 2015; (ii) Consolidated Statements of Comprehensive Income for the years ended December 31, 2017, 2016 and 2015; (iii) Consolidated Balance Sheets as of December 31, 2017 and 2016; (iv) Consolidated Statements of Cash Flows for the years ended December 31, 2017, 2016 and 2015; (v) Consolidated Statements of Changes in Common Shareholders’ Equity for the years ended December 31, 2017, 2016 and 2015; and (vi) Notes to Consolidated Financial Statements. |
Year Ended December 31 | |||||||||||
(in thousands) | 2017 | 2016 | 2015 | ||||||||
Kaplan International | $ | 697,999 | $ | 696,362 | $ | 770,273 | |||||
Kaplan Higher Education | 431,425 | 501,784 | 757,135 | ||||||||
Kaplan Test Preparation | 273,298 | 286,556 | 301,607 | ||||||||
Professional (U.S.) | 115,839 | 115,263 | 92,490 | ||||||||
Kaplan Corporate and Intersegment Eliminations | (1,785 | ) | (1,504 | ) | 6,016 | ||||||
Total Kaplan Revenue | $ | 1,516,776 | $ | 1,598,461 | $ | 1,927,521 |
Management’s Discussion and Analysis of Results of Operations and Financial Condition (Unaudited) | |
Financial Statements: | |
Report of Independent Registered Public Accounting Firm | |
Consolidated Statements of Operations for the Three Years Ended December 31, 2017 | |
Consolidated Statements of Comprehensive Income (Loss) for the Three Years Ended December 31, 2017 | |
Consolidated Balance Sheets at December 31, 2017 and 2016 | |
Consolidated Statements of Cash Flows for the Three Years Ended December 31, 2017 | |
Consolidated Statements of Changes in Common Stockholders’ Equity for the Three Years Ended December 31, 2017 | |
Notes to Consolidated Financial Statements | |
Five-Year Summary of Selected Historical Financial Data (Unaudited) |
• | $10.0 million in restructuring and non-operating Separation Incentive Program charges at the education division (after-tax impact of $6.3 million, or $1.12 per share); |
• | a $9.2 million goodwill and other long-lived asset impairment charge in other businesses (after-tax impact of $5.8 million, or $1.03 per share); |
• | $3.3 million in non-operating foreign currency gains (after-tax impact of $2.1 million, or $0.37 per share); |
• | $177.5 million in net deferred tax benefits related to the enactment of the Tax Cuts and Jobs Act in December 2017 ($31.68 per share); and |
• | $5.9 million in income tax benefits related to stock compensation ($1.06 per share). |
• | $11.9 million in restructuring charges at the education division (after-tax impact of $7.7 million, or $1.36 per share); |
• | an $18.0 million non-operating gain related to a bulk lump sum pension program offering (after-tax impact of $10.8 million, or $1.92 per share); |
• | $16.8 million in net non-operating gains from the sales of assets and write-downs of cost and equity method investments (after tax impact of $9.5 million, or $1.62 per share); |
• | $39.9 million in non-operating foreign currency losses (after-tax impact of $25.5 million, or $4.51 per share); and |
• | a net nonrecurring $13.9 million deferred tax benefit related to Kaplan ($2.47 per share). |
Year Ended December 31 | ||||||||||
(in thousands) | 2017 | 2016 | % Change | |||||||
Revenue | ||||||||||
Kaplan international | $ | 697,999 | $ | 696,362 | — | |||||
Higher education | 431,425 | 501,784 | (14 | ) | ||||||
Test preparation | 273,298 | 286,556 | (5 | ) | ||||||
Professional (U.S.) | 115,839 | 115,263 | — | |||||||
Kaplan corporate and other | 294 | 214 | 37 | |||||||
Intersegment elimination | (2,079 | ) | (1,718 | ) | — | |||||
$ | 1,516,776 | $ | 1,598,461 | (5 | ) | |||||
Operating Income (Loss) | ||||||||||
Kaplan international | $ | 51,623 | $ | 48,398 | 7 | |||||
Higher education | 16,719 | 39,196 | (57 | ) | ||||||
Test preparation | 11,507 | 9,599 | 20 | |||||||
Professional (U.S.) | 27,558 | 27,436 | — | |||||||
Kaplan corporate and other | (24,701 | ) | (21,763 | ) | (13 | ) | ||||
Amortization of intangible assets | (5,162 | ) | (7,516 | ) | 31 | |||||
Intersegment elimination | 143 | (29 | ) | — | ||||||
$ | 77,687 | $ | 95,321 | (18 | ) |
As of December 31 | |||||
2017 | 2016 | ||||
Certificate | 9.5 | % | 7.7 | % | |
Associate’s | 16.5 | % | 18.1 | % | |
Bachelor’s | 50.9 | % | 50.9 | % | |
Master’s | 23.1 | % | 23.3 | % | |
100.0 | % | 100.0 | % |
Year Ended December 31 | % | ||||||||||
(in thousands) | 2017 | 2016 | Change | ||||||||
Operating Revenues | |||||||||||
Manufacturing | $ | 414,193 | $ | 241,604 | 71 | ||||||
SocialCode | 62,077 | 58,851 | 5 | ||||||||
Other | 34,733 | 26,433 | 31 | ||||||||
$ | 511,003 | $ | 326,888 | 56 | |||||||
Operating Expenses | |||||||||||
Manufacturing | $ | 399,246 | $ | 228,887 | 74 | ||||||
SocialCode | 65,751 | 71,258 | (8 | ) | |||||||
Other | 65,269 | 51,644 | 26 | ||||||||
$ | 530,266 | $ | 351,789 | 51 | |||||||
Operating Income (Loss) | |||||||||||
Manufacturing | $ | 14,947 | $ | 12,717 | 18 | ||||||
SocialCode | (3,674 | ) | (12,407 | ) | 70 | ||||||
Other | (30,536 | ) | (25,211 | ) | (21 | ) | |||||
$ | (19,263 | ) | $ | (24,901 | ) | 23 | |||||
Depreciation | |||||||||||
Manufacturing | $ | 9,173 | $ | 7,251 | 27 | ||||||
SocialCode | 1,004 | 929 | 8 | ||||||||
Other | 1,546 | 1,390 | 11 | ||||||||
$ | 11,723 | $ | 9,570 | 22 | |||||||
Amortization of Intangible Assets and Impairment of Goodwill and Other Long-Lived Assets | |||||||||||
Manufacturing | $ | 31,052 | $ | 12,119 | — | ||||||
SocialCode | 333 | — | — | ||||||||
Other | — | 1,687 | — | ||||||||
$ | 31,385 | $ | 13,806 | — | |||||||
Pension Service Cos | |||||||||||
Manufacturing | $ | 79 | $ | 86 | (8 | ) | |||||
SocialCode | 593 | 541 | 10 | ||||||||
Other | 453 | 491 | (8 | ) | |||||||
$ | 1,125 | $ | 1,118 | 1 |
• | $11.9 million in restructuring charges at the education division (after-tax impact of $7.7 million, or $1.36 per share); |
• | an $18.0 million non-operating gain related to a bulk lump sum pension program offering (after-tax impact of $10.8 million, or $1.92 per share); |
• | $32.2 million net non-operating gain from the sales of land and marketable equity securities (after-tax impact of $20.0 million, or $3.52 per share); |
• | a $22.2 million non-operating gain arising from the sale of a business and the formation of a joint venture (after-tax impact of $13.6 million, or $2.37 per share); |
• | $37.6 million in non-operating expenses from the write-down of cost method investments and investments in affiliates (after-tax impact of $24.1 million, or $4.27 per share); |
• | $39.9 million in non-operating foreign currency losses (after-tax impact of $25.5 million, or $4.51 per share); |
• | a net nonrecurring $8.3 million deferred tax benefit related to Kaplan’s international operations ($1.47 per share); and |
• | a favorable $5.6 million out of period deferred tax adjustment related to the KHE goodwill impairment recorded in the third quarter of 2015 ($1.00 per share). |
• | $259.7 million goodwill and long-lived assets impairment charges at the education division and other businesses (after-tax impact of $225.2 million, or $38.96 per share); |
• | $45.8 million in restructuring and non-operating Special Incentive Program charges at the education division, corporate office and other businesses (after-tax impact of $28.9 million, or $4.97 per share); |
• | $24.9 million in expense related to the modification of stock option awards in conjunction with the Cable ONE spin-off and the modification of restricted stock awards (after-tax impact of $15.3 million, or $2.64 per share); |
• | $12.5 million in net non-operating losses arising from the sales of five businesses and an investment, and on the formation of a joint venture (after-tax impact of $15.7 million, or $2.82 per share); |
• | $21.4 million non-operating gain on the sale of land (after-tax impact of $13.2 million, or $2.27 per share); and |
• | $15.6 million in non-operating unrealized foreign currency losses (after-tax impact of $9.7 million, or $1.67 per share). |
Year Ended December 31 | ||||||||||
(in thousands) | 2016 | 2015 | % Change | |||||||
Revenue | ||||||||||
Kaplan international | $ | 696,362 | $ | 770,273 | (10 | ) | ||||
Higher education | 501,784 | 757,135 | (34 | ) | ||||||
Test preparation | 286,556 | 301,607 | (5 | ) | ||||||
Professional (U.S.) | 115,263 | 92,490 | 25 | |||||||
Kaplan corporate and other | 214 | 6,502 | (97 | ) | ||||||
Intersegment elimination | (1,718 | ) | (486 | ) | — | |||||
$ | 1,598,461 | $ | 1,927,521 | (17 | ) | |||||
Operating Income (Loss) | ||||||||||
Kaplan international | $ | 48,398 | $ | 53,661 | (10 | ) | ||||
Higher education | 39,196 | 29,896 | 31 | |||||||
Test preparation | 9,599 | 16,798 | (43 | ) | ||||||
Professional (U.S.) | 27,436 | 25,676 | 7 | |||||||
Kaplan corporate and other | (21,763 | ) | (81,788 | ) | 73 | |||||
Amortization of intangible assets | (7,516 | ) | (5,523 | ) | (36 | ) | ||||
Impairment of goodwill and other long-lived assets | — | (256,830 | ) | — | ||||||
Intersegment elimination | (29 | ) | 96 | — | ||||||
$ | 95,321 | $ | (218,014 | ) | — |
Year Ended | ||||||||
December 31 | ||||||||
(in thousands) | 2016 | 2015 | ||||||
Revenue | $ | 1,681 | $ | 178,734 | ||||
Operating loss | $ | (2,438 | ) | $ | (38,830 | ) |
As of December 31 | |||||
2016 | 2015 | ||||
Certificate | 7.7 | % | 4.4 | % | |
Associate’s | 18.1 | % | 25.0 | % | |
Bachelor’s | 50.9 | % | 48.4 | % | |
Master’s | 23.3 | % | 22.2 | % | |
100.0 | % | 100.0 | % |
Year Ended December 31 | % | ||||||||||
(in thousands) | 2016 | 2015 | Change | ||||||||
Operating Revenues | |||||||||||
Manufacturing | $ | 241,604 | $ | 92,255 | — | ||||||
SocialCode | 58,851 | 45,829 | 28 | ||||||||
Other | 26,433 | 25,883 | 2 | ||||||||
$ | 326,888 | $ | 163,967 | 99 | |||||||
Operating Expenses | |||||||||||
Manufacturing | $ | 228,887 | $ | 85,839 | — | ||||||
SocialCode | 71,258 | 46,375 | 54 | ||||||||
Other | 51,644 | 51,653 | — | ||||||||
$ | 351,789 | $ | 183,867 | 91 | |||||||
Operating Income (Loss) | |||||||||||
Manufacturing | $ | 12,717 | $ | 6,416 | 98 | ||||||
SocialCode | (12,407 | ) | (546 | ) | — | ||||||
Other | (25,211 | ) | (25,770 | ) | 2 | ||||||
$ | (24,901 | ) | $ | (19,900 | ) | (25 | ) | ||||
Depreciation | |||||||||||
Manufacturing | $ | 7,251 | $ | 1,868 | — | ||||||
SocialCode | 929 | 402 | — | ||||||||
Other | 1,390 | 1,062 | 31 | ||||||||
$ | 9,570 | $ | 3,332 | — | |||||||
Amortization of Intangible Assets and Impairment of Goodwill and Other Long-Lived Assets | |||||||||||
Manufacturing | $ | 12,119 | $ | 6,319 | 92 | ||||||
SocialCode | — | — | — | ||||||||
Other | 1,687 | 2,918 | (42 | ) | |||||||
$ | 13,806 | $ | 9,237 | 49 | |||||||
Pension Service Cost | |||||||||||
Manufacturing | $ | 86 | $ | 73 | 18 | ||||||
SocialCode | 541 | 270 | — | ||||||||
Other | 491 | 621 | (21 | ) | |||||||
$ | 1,118 | $ | 964 | 16 |
Moody’s | Standard & Poor’s | ||
Long-term | Ba1 | BB+ |
(in thousands) | 2018 | 2019 | 2020 | 2021 | 2022 | Thereafter | Total | ||||||||||||||||||||
Debt and interest | $ | 37,534 | $ | 422,899 | $ | 81,064 | $ | 14 | $ | 15 | $ | 45 | $ | 541,571 | |||||||||||||
Operating leases | 97,935 | 88,298 | 70,500 | 56,693 | 43,976 | 121,875 | 479,277 | ||||||||||||||||||||
Programming purchase commitments (1) | 8,741 | 7,422 | 4,835 | 301 | 383 | — | 21,682 | ||||||||||||||||||||
Other purchase obligations (2) | 94,595 | 49,408 | 17,197 | 7,158 | 2,848 | 1,626 | 172,832 | ||||||||||||||||||||
Long-term liabilities (3) | 4,315 | 4,191 | 4,277 | 4,286 | 4,319 | 26,826 | 48,214 | ||||||||||||||||||||
Total | $ | 243,120 | $ | 572,218 | $ | 177,873 | $ | 68,452 | $ | 51,541 | $ | 150,372 | $ | 1,263,576 |
(1) | Includes commitments for the Company’s television broadcasting business that are reflected in the Company’s Consolidated Financial Statements and commitments to purchase programming to be produced in future years. |
(2) | Includes purchase obligations related to employment agreements, capital projects and other legally binding commitments. Other purchase orders made in the ordinary course of business are excluded from the table above. Any amounts for which the Company is liable under purchase orders are reflected in the Company’s Consolidated Balance Sheets as accounts payable and accrued liabilities. |
(3) | Primarily made up of postretirement benefit obligations other than pensions. The Company has other long-term liabilities excluded from the table above, including obligations for deferred compensation, long-term incentive plans and long-term deferred revenue. |
As of December 31 | |||||||
(in millions) | 2017 | 2016 | |||||
Goodwill and indefinite-lived intangible assets | $ | 1,401.9 | $ | 1,189.0 | |||
Total assets | $ | 4,937.8 | $ | 4,432.7 | |||
Percentage of goodwill and indefinite-lived intangible assets to total assets | 28 | % | 27 | % |
(in millions) | Goodwill | ||
Education | |||
Kaplan international | $ | 615.9 | |
Higher education | 74.5 | ||
Test preparation | 63.8 | ||
Professional (U.S.) | 66.8 | ||
Television broadcasting | 190.8 | ||
Hoover | 91.3 | ||
Total | $ | 1,103.1 |
• | Expected cash flows underlying the Company’s business plans for the periods 2018 through 2022 were used. The expected cash flows took into account historical growth rates, the effect of the changed economic outlook at some of the Company’s businesses, industry challenges and an estimate for the possible impact of any applicable regulations. |
• | Cash flows beyond 2022 were projected to grow at a long-term growth rate, which the Company estimated between 1% and 3% for each reporting unit. |
• | The Company used a discount rate of 10.0% to 22.5% to risk adjust the cash flow projections in determining the estimated fair value. |
• | Expected return on assets – A 1% increase or decrease to the Company’s assumed expected return on plan assets would have increased or decreased the pension credit by approximately $19.4 million. |
• | Discount rate – A 1% decrease to the Company’s assumed discount rate would have decreased the pension credit by approximately $0.4 million. A 1% increase to the Company’s assumed discount rate would have increased the pension credit by approximately $21.9 million. |
• | Asset returns that are more or less than the expected return on plan assets for the year; |
• | Actual participant demographic experience different from assumed (retirements, terminations and deaths during the year); |
• | Actual salary increases different from assumed; and |
• | Any changes in assumptions that are made to better reflect anticipated experience of the plan or to reflect current market conditions on the measurement date (discount rate, longevity increases, changes in expected participant behavior and expected return on plan assets). |
Year Ended December 31 | |||||||||||
(in thousands, except per share amounts) | 2017 | 2016 | 2015 | ||||||||
Operating Revenues | |||||||||||
Education | $ | 1,517,659 | $ | 1,598,347 | $ | 1,927,405 | |||||
Advertising | 305,373 | 330,902 | 299,076 | ||||||||
Other | 768,814 | 552,641 | 359,633 | ||||||||
2,591,846 | 2,481,890 | 2,586,114 | |||||||||
Operating Costs and Expenses | |||||||||||
Operating | 1,454,343 | 1,270,030 | 1,306,863 | ||||||||
Selling, general and administrative | 887,790 | 896,097 | 1,080,768 | ||||||||
Depreciation of property, plant and equipment | 62,509 | 64,620 | 77,906 | ||||||||
Amortization of intangible assets | 41,187 | 26,671 | 19,017 | ||||||||
Impairment of goodwill and other long-lived assets | 9,614 | 1,603 | 259,700 | ||||||||
2,455,443 | 2,259,021 | 2,744,254 | |||||||||
Income (Loss) from Operations | 136,403 | 222,869 | (158,140 | ) | |||||||
Equity in losses of affiliates, net | (3,249 | ) | (7,937 | ) | (697 | ) | |||||
Interest income | 6,581 | 3,093 | 1,909 | ||||||||
Interest expense | (33,886 | ) | (35,390 | ) | (32,654 | ) | |||||
Non-operating pension and postretirement benefit income, net | 72,699 | 80,665 | 77,315 | ||||||||
Other income (expense), net | 4,241 | (12,642 | ) | (8,623 | ) | ||||||
Income (Loss) from Continuing Operations Before Income Taxes | 182,789 | 250,658 | (120,890 | ) | |||||||
(Benefit from) Provision for Income Taxes | (119,700 | ) | 81,200 | 20,500 | |||||||
Income (Loss) from Continuing Operations | 302,489 | 169,458 | (141,390 | ) | |||||||
Income from Discontinued Operations, Net of Tax | — | — | 42,170 | ||||||||
Net Income (Loss) | 302,489 | 169,458 | (99,220 | ) | |||||||
Net Income Attributable to Noncontrolling Interests | (445 | ) | (868 | ) | (1,435 | ) | |||||
Net Income (Loss) Attributable to Graham Holdings Company | 302,044 | 168,590 | (100,655 | ) | |||||||
Redeemable Preferred Stock Dividends | — | — | (631 | ) | |||||||
Net Income (Loss) Attributable to Graham Holdings Company Common Stockholders | $ | 302,044 | $ | 168,590 | $ | (101,286 | ) | ||||
Amounts Attributable to Graham Holdings Company Common Stockholders | |||||||||||
Income (loss) from continuing operations | $ | 302,044 | $ | 168,590 | $ | (143,456 | ) | ||||
Income from discontinued operations, net of tax | — | — | 42,170 | ||||||||
Net income (loss) attributable to Graham Holdings Company common stockholders | $ | 302,044 | $ | 168,590 | $ | (101,286 | ) | ||||
Per Share Information Attributable to Graham Holdings Company Common Stockholders | |||||||||||
Basic income (loss) per common share from continuing operations | $ | 54.24 | $ | 29.95 | $ | (25.23 | ) | ||||
Basic income per common share from discontinued operations | — | — | 7.36 | ||||||||
Basic net income (loss) per common share | $ | 54.24 | $ | 29.95 | $ | (17.87 | ) | ||||
Basic average number of common shares outstanding | 5,516 | 5,559 | 5,727 | ||||||||
Diluted income (loss) per common share from continuing operations | $ | 53.89 | $ | 29.80 | $ | (25.23 | ) | ||||
Diluted income per common share from discontinued operations | — | — | 7.36 | ||||||||
Diluted net income (loss) per common share | $ | 53.89 | $ | 29.80 | $ | (17.87 | ) | ||||
Diluted average number of common shares outstanding | 5,552 | 5,589 | 5,727 |
Year Ended December 31 | |||||||||||
(in thousands) | 2017 | 2016 | 2015 | ||||||||
Net Income (Loss) | $ | 302,489 | $ | 169,458 | $ | (99,220 | ) | ||||
Other Comprehensive Income (Loss), Before Tax | |||||||||||
Foreign currency translation adjustments: | |||||||||||
Translation adjustments arising during the year | 33,175 | (22,149 | ) | (18,898 | ) | ||||||
Adjustment for sales of businesses with foreign operations | 137 | — | 5,501 | ||||||||
33,312 | (22,149 | ) | (13,397 | ) | |||||||
Unrealized gains on available-for-sale securities: | |||||||||||
Unrealized gains for the year | 112,086 | 55,507 | 10,620 | ||||||||
Reclassification adjustment for realization of loss (gain) on sale of available-for-sale securities included in net income | — | 1,879 | (4 | ) | |||||||
112,086 | 57,386 | 10,616 | |||||||||
Pension and other postretirement plans: | |||||||||||
Actuarial gain (loss) | 179,674 | (133,915 | ) | (211,054 | ) | ||||||
Prior service cost | (75 | ) | — | — | |||||||
Amortization of net actuarial (gain) loss included in net income | (6,527 | ) | 1,157 | (9,906 | ) | ||||||
Amortization of net prior service cost included in net income | 477 | 419 | 275 | ||||||||
Curtailments and settlements included in net income | — | (17,993 | ) | 51 | |||||||
Curtailments and settlements included in distribution to Cable ONE | — | — | 834 | ||||||||
173,549 | (150,332 | ) | (219,800 | ) | |||||||
Cash flow hedge gain (loss) | 112 | (334 | ) | 179 | |||||||
Other Comprehensive Income (Loss), Before Tax | 319,059 | (115,429 | ) | (222,402 | ) | ||||||
Income tax (expense) benefit related to items of other comprehensive income (loss) | (90,923 | ) | 37,235 | 83,602 | |||||||
Other Comprehensive Income (Loss), Net of Tax | 228,136 | (78,194 | ) | (138,800 | ) | ||||||
Comprehensive Income (Loss) | 530,625 | 91,264 | (238,020 | ) | |||||||
Comprehensive income attributable to noncontrolling interests | (445 | ) | (868 | ) | (1,435 | ) | |||||
Total Comprehensive Income (Loss) Attributable to Graham Holdings Company | $ | 530,180 | $ | 90,396 | $ | (239,455 | ) |
As of December 31 | |||||||
(In thousands, except share amounts) | 2017 | 2016 | |||||
Assets | |||||||
Current Assets | |||||||
Cash and cash equivalents | $ | 390,014 | $ | 648,885 | |||
Restricted cash | 17,552 | 21,931 | |||||
Investments in marketable equity securities and other investments | 557,153 | 448,241 | |||||
Accounts receivable, net | 620,319 | 615,101 | |||||
Income taxes receivable | 23,901 | 41,635 | |||||
Inventories and contracts in progress | 60,612 | 34,818 | |||||
Other current assets | 66,253 | 60,735 | |||||
Total Current Assets | 1,735,804 | 1,871,346 | |||||
Property, Plant and Equipment, Net | 259,358 | 233,664 | |||||
Investments in Affiliates | 128,590 | 58,806 | |||||
Goodwill, Net | 1,299,710 | 1,122,954 | |||||
Indefinite-Lived Intangible Assets | 102,195 | 66,026 | |||||
Amortized Intangible Assets, Net | 237,976 | 107,939 | |||||
Prepaid Pension Cost | 1,056,777 | 881,593 | |||||
Deferred Income Taxes | 15,367 | 17,246 | |||||
Deferred Charges and Other Assets | 102,046 | 73,096 | |||||
Total Assets | $ | 4,937,823 | $ | 4,432,670 | |||
Liabilities and Equity | |||||||
Current Liabilities | |||||||
Accounts payable and accrued liabilities | $ | 526,323 | $ | 500,726 | |||
Deferred revenue | 339,454 | 312,107 | |||||
Income taxes payable | 6,109 | — | |||||
Current portion of long-term debt | 6,726 | 6,128 | |||||
Total Current Liabilities | 878,612 | 818,961 | |||||
Postretirement Benefits Other Than Pensions | 20,865 | 21,859 | |||||
Accrued Compensation and Related Benefits | 193,024 | 195,910 | |||||
Other Liabilities | 65,977 | 65,554 | |||||
Deferred Income Taxes | 362,701 | 379,092 | |||||
Mandatorily Redeemable Noncontrolling Interest | 10,331 | 12,584 | |||||
Long-Term Debt | 486,561 | 485,719 | |||||
Total Liabilities | 2,018,071 | 1,979,679 | |||||
Commitments and Contingencies (Notes 18 and 19) | |||||||
Redeemable Noncontrolling Interests | 4,607 | 50 | |||||
Preferred Stock, $1 par value; 977,000 shares authorized, none issued | — | — | |||||
Common Stockholders’ Equity | |||||||
Common stock | |||||||
Class A Common stock, $1 par value; 7,000,000 shares authorized; 964,001 shares issued and outstanding | 964 | 964 | |||||
Class B Common stock, $1 par value; 40,000,000 shares authorized; 19,035,999 shares issued; 4,540,493 and 4,612,435 shares outstanding | 19,036 | 19,036 | |||||
Capital in excess of par value | 370,700 | 364,363 | |||||
Retained earnings | 5,791,724 | 5,588,942 | |||||
Accumulated other comprehensive income, net of taxes | |||||||
Cumulative foreign currency translation adjustment | 6,314 | (26,998 | ) | ||||
Unrealized gain on available-for-sale securities | 194,889 | 92,931 | |||||
Unrealized gain on pensions and other postretirement plans | 334,536 | 170,830 | |||||
Cash flow hedge | (184 | ) | (277 | ) | |||
Cost of 14,495,506 and 14,423,564 shares of Class B common stock held in treasury | (3,802,834 | ) | (3,756,850 | ) | |||
Total Equity | 2,915,145 | 2,452,941 | |||||
Total Liabilities and Equity | $ | 4,937,823 | $ | 4,432,670 |
Year Ended December 31 | |||||||||||
(In thousands) | 2017 | 2016 | 2015 | ||||||||
Cash Flows from Operating Activities | |||||||||||
Net Income (Loss) | $ | 302,489 | $ | 169,458 | $ | (99,220 | ) | ||||
Adjustments to reconcile net income to net cash provided by operating activities: | |||||||||||
Depreciation, amortization and goodwill and other long-lived asset impairment | 113,310 | 92,894 | 428,437 | ||||||||
Net pension benefit | (59,039 | ) | (67,097 | ) | (65,433 | ) | |||||
Early retirement and special separation benefit program expense | 1,825 | — | 4,606 | ||||||||
Stock-based compensation expense, net | 10,169 | 13,418 | 48,033 | ||||||||
Foreign exchange (gain) loss | (3,310 | ) | 39,890 | 15,564 | |||||||
Net loss (gain) on sales and disposition of businesses | 569 | (22,163 | ) | 18,095 | |||||||
Net loss on dispositions, sales or write-downs of marketable equity securities and cost method investments | 200 | 30,449 | 1,378 | ||||||||
Gain on sale of an equity affiliate | — | — | (4,827 | ) | |||||||
Equity in losses of affiliates, net of distributions | 3,646 | 8,859 | 1,118 | ||||||||
(Benefit from) provision for deferred income taxes | (146,452 | ) | 10,070 | 4,060 | |||||||
Net loss (gain) on sales or write-downs of property, plant and equipment | 413 | (32,362 | ) | (18,265 | ) | ||||||
Change in operating assets and liabilities: | |||||||||||
Accounts receivable, net | 11,086 | (47,892 | ) | (87,165 | ) | ||||||
Inventories | (541 | ) | (2,422 | ) | (1,778 | ) | |||||
Accounts payable and accrued liabilities | 19,380 | 58,147 | 62,901 | ||||||||
Deferred revenue | 13,903 | 16,552 | (51,825 | ) | |||||||
Income taxes receivable/payable | 24,739 | 5,115 | (174,326 | ) | |||||||
Other assets and other liabilities, net | (25,469 | ) | (12,265 | ) | (11,972 | ) | |||||
Other | 1,137 | 605 | 1,270 | ||||||||
Net Cash Provided by Operating Activities | 268,055 | 261,256 | 70,651 | ||||||||
Cash Flows from Investing Activities | |||||||||||
Investments in certain businesses, net of cash acquired | (299,938 | ) | (245,084 | ) | (159,320 | ) | |||||
Investments in equity affiliates, cost method and other investments | (82,944 | ) | (6,273 | ) | (25,267 | ) | |||||
Purchases of property, plant and equipment | (60,358 | ) | (66,612 | ) | (136,859 | ) | |||||
Disbursement of loan to affiliate | (6,771 | ) | (14,244 | ) | — | ||||||
Return of investment in equity affiliate | 4,727 | — | — | ||||||||
Net proceeds from sales of businesses, property, plant and equipment and other assets | 3,265 | 69,192 | 41,683 | ||||||||
Purchases of marketable equity securities | — | (48,265 | ) | (145,807 | ) | ||||||
Net Cash Used in Investing Activities | (442,019 | ) | (311,286 | ) | (425,570 | ) | |||||
Cash Flows from Financing Activities | |||||||||||
Common shares repurchased | (50,770 | ) | (108,948 | ) | (22,979 | ) | |||||
Dividends paid | (28,329 | ) | (27,325 | ) | (53,721 | ) | |||||
(Repayments of) proceeds from bank overdrafts | (9,505 | ) | 14,429 | 1,095 | |||||||
Repayments of borrowings | (7,715 | ) | — | (44,815 | ) | ||||||
Deferred payments of acquisition and noncontrolling interest | (5,187 | ) | — | — | |||||||
Proceeds from exercise of stock options | 1,400 | 1,247 | 15,312 | ||||||||
Issuance of borrowings | — | 98,610 | 550,000 | ||||||||
Cash distributed to Cable ONE in spin-off | — | — | (94,115 | ) | |||||||
Purchase of noncontrolling interest | — | (21,000 | ) | — | |||||||
Excess tax benefit on share-based payment awards | — | 558 | 11,828 | ||||||||
Redemption of redeemable preferred stock | — | — | (10,510 | ) | |||||||
Payments of financing costs | — | (648 | ) | (9,944 | ) | ||||||
Net Cash (Used in) Provided by Financing Activities | (100,106 | ) | (43,077 | ) | 342,151 | ||||||
Effect of Currency Exchange Rate Change | 10,820 | (11,029 | ) | (11,164 | ) | ||||||
Net Decrease in Cash and Cash Equivalents and Restricted Cash | (263,250 | ) | (104,136 | ) | (23,932 | ) | |||||
Cash and Cash Equivalents and Restricted Cash at Beginning of Year | 670,816 | 774,952 | 798,884 | ||||||||
Cash and Cash Equivalents and Restricted Cash at End of Year | $ | 407,566 | $ | 670,816 | $ | 774,952 | |||||
Supplemental Cash Flow Information | |||||||||||
Cash paid during the year for: | |||||||||||
Income taxes | $ | 4,000 | $ | 65,000 | $ | 209,000 | |||||
Interest | $ | 33,000 | $ | 30,000 | $ | 33,000 |
(in thousands) | Class A Common Stock | Class B Common Stock | Capital in Excess of Par Value | Retained Earnings | Accumulated Other Comprehensive Income | Treasury Stock | Noncontrolling Interest | Total Equity | Redeemable Noncontrolling Interest | |||||||||||||||||||
As of December 31, 2014 | $ | 975 | $ | 19,025 | $ | 303,789 | $ | 6,008,506 | $ | 453,480 | $ | (3,645,476 | ) | $ | 476 | $ | 3,140,775 | $ | 21,904 | |||||||||
Net loss for the year | (99,220 | ) | (99,220 | ) | ||||||||||||||||||||||||
Contribution of noncontrolling interest to a joint venture | (476 | ) | (476 | ) | ||||||||||||||||||||||||
Net income attributable to redeemable noncontrolling interests | (1,435 | ) | (1,435 | ) | 1,435 | |||||||||||||||||||||||
Change in redemption value of redeemable noncontrolling interests | (2,601 | ) | (2,601 | ) | 2,601 | |||||||||||||||||||||||
Dividends paid on common stock | (53,090 | ) | (53,090 | ) | ||||||||||||||||||||||||
Dividends paid on redeemable preferred stock | (631 | ) | (631 | ) | ||||||||||||||||||||||||
Repurchase of Class B common stock | (22,979 | ) | (22,979 | ) | ||||||||||||||||||||||||
Issuance of Class B common stock, net of restricted stock award forfeitures | (13,244 | ) | 19,909 | 6,665 | ||||||||||||||||||||||||
Amortization of unearned stock compensation and stock option expense | 57,115 | 57,115 | ||||||||||||||||||||||||||
Other comprehensive loss, net of income taxes | (139,658 | ) | (139,658 | ) | ||||||||||||||||||||||||
Conversion of Class A common stock to Class B common stock | (11 | ) | 11 | — | ||||||||||||||||||||||||
Spin-Off of Cable ONE | 7,285 | (406,453 | ) | 858 | (398,310 | ) | ||||||||||||||||||||||
Taxes arising from employee stock plans | 4,543 | 4,543 | ||||||||||||||||||||||||||
Other | — | 17 | ||||||||||||||||||||||||||
As of December 31, 2015 | 964 | 19,036 | 356,887 | 5,447,677 | 314,680 | (3,648,546 | ) | — | 2,490,698 | 25,957 | ||||||||||||||||||
Net income for the year | 169,458 | 169,458 | ||||||||||||||||||||||||||
Net income attributable to redeemable noncontrolling interests | (868 | ) | (868 | ) | 868 | |||||||||||||||||||||||
Change in redemption value of redeemable noncontrolling interests | (3,026 | ) | (3,026 | ) | 3,026 | |||||||||||||||||||||||
Dividends paid on common stock | (27,325 | ) | (27,325 | ) | ||||||||||||||||||||||||
Repurchase of Class B common stock | (108,948 | ) | (108,948 | ) | ||||||||||||||||||||||||
Issuance of Class B common stock, net of restricted stock award forfeitures | (697 | ) | 644 | (53 | ) | |||||||||||||||||||||||
Amortization of unearned stock compensation and stock option expense | 14,717 | 14,717 | ||||||||||||||||||||||||||
Other comprehensive loss, net of income taxes | (78,194 | ) | (78,194 | ) | ||||||||||||||||||||||||
Taxes arising from employee stock plans | 558 | 558 | ||||||||||||||||||||||||||
Purchase of redeemable noncontrolling interest | — | (24,031 | ) | |||||||||||||||||||||||||
Exchange of redeemable noncontrolling interest | (4,076 | ) | (4,076 | ) | (5,770 | ) | ||||||||||||||||||||||
As of December 31, 2016 | 964 | 19,036 | 364,363 | 5,588,942 | 236,486 | (3,756,850 | ) | — | 2,452,941 | 50 | ||||||||||||||||||
Net income for the year | 302,489 | 302,489 | ||||||||||||||||||||||||||
Acquisition of redeemable noncontrolling interest | — | 3,666 | ||||||||||||||||||||||||||
Net income attributable to redeemable noncontrolling interests | (445 | ) | (445 | ) | 445 | |||||||||||||||||||||||
Change in redemption value of redeemable noncontrolling interests | (446 | ) | (446 | ) | 446 | |||||||||||||||||||||||
Dividends paid on common stock | (28,329 | ) | (28,329 | ) | ||||||||||||||||||||||||
Repurchase of Class B common stock | (50,770 | ) | (50,770 | ) | ||||||||||||||||||||||||
Issuance of Class B common stock, net of restricted stock award forfeitures | (4,401 | ) | 4,786 | 385 | ||||||||||||||||||||||||
Amortization of unearned stock compensation and stock option expense | 11,184 | 11,184 | ||||||||||||||||||||||||||
Other comprehensive income, net of income taxes | 228,136 | 228,136 | ||||||||||||||||||||||||||
Reclassification of stranded tax effects as a result of tax reform | (70,933 | ) | 70,933 | — | ||||||||||||||||||||||||
As of December 31, 2017 | $ | 964 | $ | 19,036 | $ | 370,700 | $ | 5,791,724 | $ | 535,555 | $ | (3,802,834 | ) | $ | — | $ | 2,915,145 | $ | 4,607 |
1. | ORGANIZATION AND NATURE OF OPERATIONS |
• | Note 2 - Summary of Significant Accounting Policies |
• | Note 3 - Acquisitions and Dispositions of Businesses |
• | Note 9 - Goodwill and Other Intangible Assets |
• | Note 15 - Pensions and Other Postretirement Plans |
• | Note 20 - Business Segments |
• | Note 21 - Summary of Quarterly Operating Results and Comprehensive Income (Unaudited) |
2. | SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES |
(in thousands) | As Previously Reported | Adjustment | Upon Adoption | ||||||||
Twelve Months Ended December 31, 2017 | |||||||||||
Operating expenses | $ | 1,359,842 | $ | 94,501 | $ | 1,454,343 | |||||
Selling, general and administrative expenses | 909,592 | (21,802 | ) | 887,790 | |||||||
Income from Operations | 209,102 | (72,699 | ) | 136,403 | |||||||
Non-operating pension and postretirement benefit income, net | — | 72,699 | 72,699 | ||||||||
Income from Continuing Operations Before Income Taxes | 182,789 | — | 182,789 | ||||||||
Twelve Months Ended December 31, 2016 | |||||||||||
Operating expenses | $ | 1,180,945 | $ | 89,085 | $ | 1,270,030 | |||||
Selling, general and administrative expenses | 904,517 | (8,420 | ) | 896,097 | |||||||
Income from Operations | 303,534 | (80,665 | ) | 222,869 | |||||||
Non-operating pension and postretirement benefit income, net | — | 80,665 | 80,665 | ||||||||
Income from Continuing Operations Before Income Taxes | 250,658 | — | 250,658 | ||||||||
Twelve Months Ended December 31, 2015 | |||||||||||
Operating expenses | $ | 1,206,153 | $ | 100,710 | $ | 1,306,863 | |||||
Selling, general and administrative expenses | 1,104,163 | (23,395 | ) | 1,080,768 | |||||||
Loss from Operations | (80,825 | ) | (77,315 | ) | (158,140 | ) | |||||
Non-operating pension and postretirement benefit income, net | — | 77,315 | 77,315 | ||||||||
Loss from Continuing Operations Before Income Taxes | (120,890 | ) | — | (120,890 | ) |
3. | ACQUISITIONS AND DISPOSITIONS OF BUSINESSES |
Purchase Price Allocation | ||||||||||||
Year Ended December 31 | ||||||||||||
(in thousands) | 2017 | 2016 | 2015 | |||||||||
Accounts receivable | $ | 12,502 | $ | 8,538 | $ | 30,537 | ||||||
Inventory | 25,253 | 878 | 20,593 | |||||||||
Property, plant and equipment | 29,921 | 3,940 | 28,872 | |||||||||
Goodwill | 143,149 | 184,118 | 76,156 | |||||||||
Indefinite-lived intangible assets | 33,800 | 53,110 | 7,400 | |||||||||
Amortized intangible assets | 170,658 | 28,267 | 31,900 | |||||||||
Other assets | 1,880 | 1,420 | 1,213 | |||||||||
Pension and other postretirement benefits liabilities | (59,116 | ) | — | — | ||||||||
Other liabilities | (12,177 | ) | (21,892 | ) | (28,880 | ) | ||||||
Deferred income taxes | (37,289 | ) | (11,009 | ) | (8,012 | ) | ||||||
Redeemable noncontrolling interest | (3,666 | ) | — | — | ||||||||
Aggregate purchase price, net of cash acquired | $ | 304,915 | $ | 247,370 | $ | 159,779 |
Year Ended December 31 | |||||||||||
(in thousands) | 2017 | 2016 | 2015 | ||||||||
Operating revenues | $ | 2,655,601 | $ | 2,750,416 | $ | 2,804,663 | |||||
Net income (loss) | 311,274 | 175,021 | (84,209 | ) |
Year Ended | |||
(in thousands) | December 31, 2015 | ||
Revenue | $ | 167,093 | |
Operating loss | (6,264 | ) |
4. | DISCONTINUED OPERATIONS |
As of | ||||
(in thousands) | July 1, 2015 | |||
Cash and cash equivalents | $ | 94,115 | ||
Accounts receivable, net | 29,778 | |||
Other current assets | 14,182 | |||
Total current assets | 138,075 | |||
Property, plant and equipment, net | 612,812 | |||
Goodwill, net | 85,488 | |||
Indefinite-lived intangible assets, net | 496,321 | |||
Amortized intangible assets, net | 510 | |||
Deferred charges and other assets | 22,541 | |||
Total Assets | $ | 1,355,747 | ||
Accounts payable and accrued liabilities | $ | 70,920 | ||
Income taxes payable | 2,962 | |||
Deferred revenue | 21,883 | |||
Short-term borrowings | 2,500 | |||
Total current liabilities | 98,265 | |||
Accrued compensation and related benefits | 24,227 | |||
Other liabilities | 57 | |||
Deferred income taxes | 279,245 | |||
Long-term debt | 547,500 | |||
Total Liabilities | $ | 949,294 | ||
Net assets divested in the Spin-Off | $ | 406,453 |
Year Ended | |||
(in thousands) | December 31, 2015 | ||
Operating revenues | $ | 397,404 | |
Operating costs and expenses | (325,379 | ) | |
Operating income | 72,025 | ||
Non-operating expense | (1,288 | ) | |
Income from discontinued operations | 70,737 | ||
Provision for income taxes | 27,783 | ||
Net Income from Discontinued Operations | 42,954 | ||
Loss on disposition of discontinued operations | (732 | ) | |
Provision for income taxes on disposition of discontinued operations | 52 | ||
Income from Discontinued Operations, Net of Tax | $ | 42,170 |
5. | INVESTMENTS |
As of December 31 | |||||||
(in thousands) | 2017 | 2016 | |||||
Total cost | $ | 269,343 | $ | 269,343 | |||
Gross unrealized gains | 266,972 | 154,886 | |||||
Total Fair Value | $ | 536,315 | $ | 424,229 |
6. | ACCOUNTS RECEIVABLE, ACCOUNTS PAYABLE AND ACCRUED LIABILITIES |
As of December 31 | |||||||
(in thousands) | 2017 | 2016 | |||||
Trade accounts receivable, less doubtful accounts of $22,975 and $26,723 | $ | 600,215 | $ | 591,854 | |||
Other receivables | 20,104 | 23,247 | |||||
$ | 620,319 | $ | 615,101 |
(in thousands) | Balance at Beginning of Period | Additions – Charged to Costs and Expenses | Deductions | Balance at End of Period | |||||||||||
2017 | $ | 26,723 | $ | 33,830 | $ | (37,578 | ) | $ | 22,975 | ||||||
2016 | $ | 27,854 | $ | 29,718 | $ | (30,849 | ) | $ | 26,723 | ||||||
2015 | $ | 32,598 | $ | 39,982 | $ | (44,726 | ) | $ | 27,854 |
As of December 31 | |||||||
(in thousands) | 2017 | 2016 | |||||
Accounts payable and accrued liabilities | $ | 385,927 | $ | 352,356 | |||
Accrued compensation and related benefits | 140,396 | 148,370 | |||||
$ | 526,323 | $ | 500,726 |
7. | INVENTORIES AND CONTRACTS IN PROGRESS |
As of December 31 | |||||||
(in thousands) | 2017 | 2016 | |||||
Raw materials | $ | 30,429 | $ | 20,646 | |||
Work-in-process | 10,258 | 5,368 | |||||
Finished goods | 18,851 | 8,490 | |||||
Contracts in progress | 1,074 | 314 | |||||
$ | 60,612 | $ | 34,818 |
8. | PROPERTY, PLANT AND EQUIPMENT |
As of December 31 | |||||||
(in thousands) | 2017 | 2016 | |||||
Land | $ | 16,190 | $ | 10,410 | |||
Buildings | 107,932 | 88,256 | |||||
Machinery, equipment and fixtures | 387,914 | 433,652 | |||||
Leasehold improvements | 215,445 | 209,612 | |||||
Construction in progress | 16,649 | 36,728 | |||||
744,130 | 778,658 | ||||||
Less accumulated depreciation | (484,772 | ) | (544,994 | ) | |||
$ | 259,358 | $ | 233,664 |
9. | GOODWILL AND OTHER INTANGIBLE ASSETS |
(in thousands) | Education | Television Broadcasting | Healthcare | Other Businesses | Total | ||||||||||||||
As of December 31, 2015 | |||||||||||||||||||
Goodwill | $ | 1,006,096 | $ | 168,345 | $ | 62,440 | $ | 140,374 | $ | 1,377,255 | |||||||||
Accumulated impairment losses | (350,850 | ) | — | — | (8,892 | ) | (359,742 | ) | |||||||||||
655,246 | 168,345 | 62,440 | 131,482 | 1,017,513 | |||||||||||||||
Measurement period adjustment | (2,781 | ) | — | — | (17,243 | ) | (20,024 | ) | |||||||||||
Acquisitions | 161,938 | — | — | 22,180 | 184,118 | ||||||||||||||
Impairment | — | — | — | (1,603 | ) | (1,603 | ) | ||||||||||||
Dispositions | — | — | (2,800 | ) | — | (2,800 | ) | ||||||||||||
Foreign currency exchange rate changes | (54,250 | ) | — | — | — | (54,250 | ) | ||||||||||||
As of December 31, 2016 | |||||||||||||||||||
Goodwill | 1,111,003 | 168,345 | 59,640 | 142,501 | 1,481,489 | ||||||||||||||
Accumulated impairment losses | (350,850 | ) | — | — | (7,685 | ) | (358,535 | ) | |||||||||||
760,153 | 168,345 | 59,640 | 134,816 | 1,122,954 | |||||||||||||||
Acquisitions | 19,174 | 22,470 | 10,181 | 91,324 | 143,149 | ||||||||||||||
Impairment | — | — | — | (7,616 | ) | (7,616 | ) | ||||||||||||
Dispositions | — | — | (412 | ) | — | (412 | ) | ||||||||||||
Foreign currency exchange rate changes | 41,635 | — | — | — | 41,635 | ||||||||||||||
As of December 31, 2017 | |||||||||||||||||||
Goodwill | 1,171,812 | 190,815 | 69,409 | 233,825 | 1,665,861 | ||||||||||||||
Accumulated impairment losses | (350,850 | ) | — | — | (15,301 | ) | (366,151 | ) | |||||||||||
$ | 820,962 | $ | 190,815 | $ | 69,409 | $ | 218,524 | $ | 1,299,710 |
(in thousands) | Kaplan International | Higher Education | Test Preparation | Professional (U.S.) | Total | ||||||||||||||
As of December 31, 2015 | |||||||||||||||||||
Goodwill | $ | 447,541 | $ | 205,494 | $ | 166,098 | $ | 186,963 | $ | 1,006,096 | |||||||||
Accumulated impairment losses | — | (131,023 | ) | (102,259 | ) | (117,568 | ) | (350,850 | ) | ||||||||||
447,541 | 74,471 | 63,839 | 69,395 | 655,246 | |||||||||||||||
Measurement period adjustment | — | — | — | (2,781 | ) | (2,781 | ) | ||||||||||||
Acquisitions | 161,938 | — | — | — | 161,938 | ||||||||||||||
Foreign currency exchange rate changes | (54,294 | ) | — | — | 44 | (54,250 | ) | ||||||||||||
As of December 31, 2016 | |||||||||||||||||||
Goodwill | 555,185 | 205,494 | 166,098 | 184,226 | 1,111,003 | ||||||||||||||
Accumulated impairment losses | — | (131,023 | ) | (102,259 | ) | (117,568 | ) | (350,850 | ) | ||||||||||
555,185 | 74,471 | 63,839 | 66,658 | 760,153 | |||||||||||||||
Acquisitions | 19,174 | — | — | — | 19,174 | ||||||||||||||
Foreign currency exchange rate changes | 41,502 | — | — | 133 | 41,635 | ||||||||||||||
As of December 31, 2017 | |||||||||||||||||||
Goodwill | 615,861 | 205,494 | 166,098 | 184,359 | 1,171,812 | ||||||||||||||
Accumulated impairment losses | — | (131,023 | ) | (102,259 | ) | (117,568 | ) | (350,850 | ) | ||||||||||
$ | 615,861 | $ | 74,471 | $ | 63,839 | $ | 66,791 | $ | 820,962 |
As of December 31, 2017 | As of December 31, 2016 | ||||||||||||||||||||||||
(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 | 1–10 years (1) | $ | 260,464 | $ | 83,690 | $ | 176,774 | $ | 129,616 | $ | 55,863 | $ | 73,753 | ||||||||||||
Trade names and trademarks | 2–10 years | 50,286 | 25,596 | 24,690 | 55,240 | 29,670 | 25,570 | ||||||||||||||||||
Network affiliation agreements | 10 years | 17,400 | 1,668 | 15,732 | — | — | — | ||||||||||||||||||
Databases and technology | 3–6 years (1) | 19,563 | 5,008 | 14,555 | 5,601 | 4,368 | 1,233 | ||||||||||||||||||
Noncompete agreements | 2–5 years | 930 | 467 | 463 | 1,730 | 1,404 | 326 | ||||||||||||||||||
Other | 1–8 years | 13,430 | 7,668 | 5,762 | 12,030 | 4,973 | 7,057 | ||||||||||||||||||
$ | 362,073 | $ | 124,097 | $ | 237,976 | $ | 204,217 | $ | 96,278 | $ | 107,939 | ||||||||||||||
Indefinite-Lived Intangible Assets | |||||||||||||||||||||||||
Trade names and trademarks | $ | 82,745 | $ | 65,192 | |||||||||||||||||||||
FCC licenses | 18,800 | — | |||||||||||||||||||||||
Licensure and accreditation | 650 | 834 | |||||||||||||||||||||||
$ | 102,195 | $ | 66,026 |
(1) | As of December 31, 2016, the student and customer relationships’ minimum useful life was 2 years, and the databases and technology’s maximum useful life was 5 years. |
10. | INCOME TAXES |
Year Ended December 31 | |||||||||||
(in thousands) | 2017 | 2016 | 2015 | ||||||||
U.S. | $ | 134,276 | $ | 227,457 | $ | (142,705 | ) | ||||
Non-U.S. | 48,513 | 23,201 | 21,815 | ||||||||
$ | 182,789 | $ | 250,658 | $ | (120,890 | ) |
(in thousands) | Current | Deferred | Total | ||||||||
Year Ended December 31, 2017 | |||||||||||
U.S. Federal | $ | 10,743 | $ | (153,217 | ) | $ | (142,474 | ) | |||
State and Local | 5,930 | 3,306 | 9,236 | ||||||||
Non-U.S. | 10,079 | 3,459 | 13,538 | ||||||||
$ | 26,752 | $ | (146,452 | ) | $ | (119,700 | ) | ||||
Year Ended December 31, 2016 | |||||||||||
U.S. Federal | $ | 56,342 | $ | 33,959 | $ | 90,301 | |||||
State and Local | 6,325 | (5,164 | ) | 1,161 | |||||||
Non-U.S. | 8,463 | (18,725 | ) | (10,262 | ) | ||||||
$ | 71,130 | $ | 10,070 | $ | 81,200 | ||||||
Year Ended December 31, 2015 | |||||||||||
U.S. Federal | $ | 5,728 | $ | 20,890 | $ | 26,618 | |||||
State and Local | 402 | (10,749 | ) | (10,347 | ) | ||||||
Non-U.S. | 2,441 | 1,788 | 4,229 | ||||||||
$ | 8,571 | $ | 11,929 | $ | 20,500 |
Year Ended December 31 | |||||||||||
(in thousands) | 2017 | 2016 | 2015 | ||||||||
U.S. Federal taxes at 35% statutory rate | $ | 63,976 | $ | 87,731 | $ | (42,311 | ) | ||||
State and local taxes, net of U.S. Federal tax | 6,949 | (2,965 | ) | (3,441 | ) | ||||||
Valuation allowances against state tax benefits, net of U.S. Federal tax | (946 | ) | 3,196 | (3,285 | ) | ||||||
Deferred taxes on future distributions of unremitted non-U.S. subsidiary earnings | 1,606 | 1,993 | 2,688 | ||||||||
Valuation allowances against other non-U.S. income tax benefits | (1,935 | ) | (12,688 | ) | 431 | ||||||
Stock-based compensation | (6,023 | ) | — | — | |||||||
Goodwill impairments and dispositions | — | (5,631 | ) | 63,889 | |||||||
U.S. Federal Manufacturing Deduction tax benefits | (1,329 | ) | (6,012 | ) | (625 | ) | |||||
Write-off of deferred taxes related to intercompany loans | — | 10,965 | — | ||||||||
Deferred tax impact of U.S. Federal tax rate reduction to 21%, net of state tax impact | (153,336 | ) | — | — | |||||||
Deferred tax benefit on unremitted non-U.S. subsidiary earnings related to the Tax Act | (28,324 | ) | — | — | |||||||
Other, net | (338 | ) | 4,611 | 3,154 | |||||||
(Benefit from) Provision for Income Taxes | $ | (119,700 | ) | $ | 81,200 | $ | 20,500 |
As of December 31 | |||||||
(in thousands) | 2017 | 2016 | |||||
Accrued postretirement benefits | $ | 5,333 | $ | 9,444 | |||
Other benefit obligations | 78,815 | 120,792 | |||||
Accounts receivable | 5,481 | 10,780 | |||||
State income tax loss carryforwards | 35,434 | 23,178 | |||||
U.S. Federal income tax loss carryforwards | 2,857 | 6,212 | |||||
U.S. Federal foreign income tax credit carryforwards | 2,522 | 1,921 | |||||
Non-U.S. income tax loss carryforwards | 18,797 | 19,246 | |||||
Non-U.S. capital loss carryforwards | 2,336 | 1,929 | |||||
Other | 26,546 | 44,401 | |||||
Deferred Tax Assets | 178,121 | 237,903 | |||||
Valuation allowances | (48,742 | ) | (41,319 | ) | |||
Deferred Tax Assets, Net | $ | 129,379 | $ | 196,584 | |||
Property, plant and equipment | 11,248 | 13,591 | |||||
Prepaid pension cost | 283,604 | 349,878 | |||||
Unrealized gain on available-for-sale securities | 70,827 | 61,964 | |||||
Goodwill and other intangible assets | 109,428 | 132,997 | |||||
Non-U.S. withholding tax | 1,606 | — | |||||
Deferred Tax Liabilities | $ | 476,713 | $ | 558,430 | |||
Deferred Income Tax Liabilities, Net | $ | 347,334 | $ | 361,846 |
(in millions) | |||
2018 | $ | 8.3 | |
2019 | 2.6 | ||
2020 | 18.3 | ||
2021 | 20.1 | ||
2022 | 1.0 | ||
2023 and after | 584.8 | ||
Total | $ | 635.1 |
(in millions) | |||
2018 | $ | 3.6 | |
2019 | 3.3 | ||
2020 | 3.3 | ||
2021 | 1.1 | ||
2022 | 0.9 | ||
2023 and after | 1.3 | ||
Total | $ | 13.5 |
(in thousands) | Balance at Beginning of Period | Tax Expense and Revaluation | Deductions | Balance at End of Period | |||||||||||
Year ended | |||||||||||||||
December 31, 2017 | $ | 41,319 | $ | 7,423 | $ | — | $ | 48,742 | |||||||
December 31, 2016 | $ | 69,545 | $ | 4,709 | $ | (32,935 | ) | $ | 41,319 | ||||||
December 31, 2015 | $ | 65,521 | $ | 4,024 | $ | — | $ | 69,545 |
Year Ended December 31 | |||||||||||
(in thousands) | 2017 | 2016 | 2015 | ||||||||
Beginning unrecognized tax benefits | $ | 17,331 | $ | 17,331 | $ | 19,817 | |||||
Increases related to current year tax positions | — | — | — | ||||||||
Increases related to prior year tax positions | — | — | — | ||||||||
Decreases related to prior year tax positions | — | — | (2,486 | ) | |||||||
Decreases related to settlement with tax authorities | — | — | — | ||||||||
Decreases due to lapse of applicable statutes of limitations | — | — | — | ||||||||
Ending unrecognized tax benefits | $ | 17,331 | $ | 17,331 | $ | 17,331 |
11. | DEBT |
As of December 31 | |||||||
(in thousands) | 2017 | 2016 | |||||
7.25% unsecured notes due February 1, 2019 (1) | $ | 399,507 | $ | 399,052 | |||
U.K. Credit facility (2) | 93,671 | 91,316 | |||||
Other indebtedness | 109 | 1,479 | |||||
Total Debt | 493,287 | 491,847 | |||||
Less: current portion | (6,726 | ) | (6,128 | ) | |||
Total Long-Term Debt | $ | 486,561 | $ | 485,719 |
(1) | The carrying value is net of $0.1 million of unamortized debt issuance costs as of December 31, 2016. |
(2) | The carrying value is net of $0.4 million and $0.5 million of unamortized debt issuance costs as of December 31, 2017 and 2016, respectively. |
12. | FAIR VALUE MEASUREMENTS |
As of December 31, 2017 | |||||||||||||||
(in thousands) | Level 1 | Level 2 | Level 3 | Total | |||||||||||
Assets | |||||||||||||||
Money market investments(1) | $ | — | $ | 217,628 | $ | — | $ | 217,628 | |||||||
Marketable equity securities(3) | 536,315 | — | — | 536,315 | |||||||||||
Other current investments(4) | 9,831 | 11,007 | — | 20,838 | |||||||||||
Total Financial Assets | $ | 546,146 | $ | 228,635 | $ | — | $ | 774,781 | |||||||
Liabilities | |||||||||||||||
Deferred compensation plan liabilities(5) | $ | — | $ | 43,414 | $ | — | $ | 43,414 | |||||||
Interest rate swap(6) | — | 244 | — | 244 | |||||||||||
Mandatorily redeemable noncontrolling interest(7) | — | — | 10,331 | 10,331 | |||||||||||
Total Financial Liabilities | $ | — | $ | 43,658 | $ | 10,331 | $ | 53,989 |
As of December 31, 2016 | |||||||||||||||
(in thousands) | Level 1 | Level 2 | Level 3 | Total | |||||||||||
Assets | |||||||||||||||
Money market investments (1) | $ | — | $ | 435,258 | $ | — | $ | 435,258 | |||||||
Commercial paper (2) | 49,882 | — | — | 49,882 | |||||||||||
Marketable equity securities (3) | 424,229 | — | — | 424,229 | |||||||||||
Other current investments (4) | 6,957 | 17,055 | — | 24,012 | |||||||||||
Total Financial Assets | $ | 481,068 | $ | 452,313 | $ | — | $ | 933,381 | |||||||
Liabilities | |||||||||||||||
Deferred compensation plan liabilities (5) | $ | — | $ | 46,300 | $ | — | $ | 46,300 | |||||||
Interest rate swap (6) | — | 365 | — | 365 | |||||||||||
Mandatorily redeemable noncontrolling interest (7) | — | — | 12,584 | 12,584 | |||||||||||
Total Financial Liabilities | $ | — | $ | 46,665 | $ | 12,584 | $ | 59,249 |
(1) | The Company’s money market investments are included in cash, cash equivalents and restricted cash and the value considers the liquidity of the counterparty. |
(2) | The Company’s commercial paper investments with original maturities of three months 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. |
(6) | Included in Other liabilities. The Company utilized a market approach model using the notional amount of the interest rate swap multiplied by the observable inputs of time to maturity and market interest rates. |
(7) | The fair value of the mandatorily redeemable noncontrolling interest is based on an EBITDA multiple, adjusted for working capital and other items, which approximates fair value. |
13. | REDEEMABLE PREFERRED STOCK |
14. | CAPITAL STOCK, STOCK AWARDS AND STOCK OPTIONS |
Number of Shares | Average Grant-Date Fair Value | |||||
Beginning of year, unvested | 67,225 | $ | 655.15 | |||
Awarded | 15,543 | 535.67 | ||||
Vested | (28,593 | ) | 415.66 | |||
Forfeited | (2,600 | ) | 810.81 | |||
End of Year, Unvested | 51,575 | 744.07 |
Number of Shares | Average Option Price | |||||
Beginning of year | 186,996 | $ | 559.62 | |||
Granted | 2,000 | 845.72 | ||||
Exercised | (3,476 | ) | 402.79 | |||
Expired or forfeited | — | — | ||||
End of Year | 185,520 | 565.65 |
Options Outstanding | Options Exercisable | |||||||||||||||||
Range of Exercise Prices | Shares Outstanding at 12/31/2017 | Weighted Average Remaining Contractual Life (years) | Weighted Average Exercise Price | Shares Exercisable at 12/31/2017 | Weighted Average Remaining Contractual Life (years) | Weighted Average Exercise Price | ||||||||||||
$244–284 | 4,262 | 3.3 | $ | 262.22 | 4,262 | 3.3 | $ | 262.22 | ||||||||||
325 | 77,258 | 3.1 | 325.26 | 77,258 | 3.1 | 325.26 | ||||||||||||
719 | 77,258 | 6.8 | 719.15 | 38,628 | 6.8 | 719.15 | ||||||||||||
805–872 | 26,742 | 8.0 | 865.02 | 8,246 | 7.9 | 866.58 | ||||||||||||
185,520 | 5.4 | 565.65 | 128,394 | 4.6 | 476.44 |
2017 | 2015 | ||
Expected life (years) | 8 | 7–8 | |
Interest rate | 2.28% | 1.88%–2.17% | |
Volatility | 26.93% | 31.59%–32.69% | |
Dividend yield | 0.85% | 0.81%–1.18% |
Year Ended December 31 | |||||||||||
(in thousands, except per share amounts) | 2017 | 2016 | 2015 | ||||||||
Numerator: | |||||||||||
Numerator for basic earnings (loss) per share: | |||||||||||
Income (loss) from continuing operations attributable to Graham Holdings Company common stockholders | $ | 302,044 | $ | 168,590 | $ | (143,456 | ) | ||||
Less: Dividends paid–common stock outstanding and unvested restricted shares | (28,329 | ) | (27,325 | ) | (53,090 | ) | |||||
Undistributed earnings (losses) | 273,715 | 141,265 | (196,546 | ) | |||||||
Percent allocated to common stockholders (1) | 99.06 | % | 98.79 | % | 100.00 | % | |||||
271,150 | 139,562 | (196,546 | ) | ||||||||
Add: Dividends paid–common stock outstanding | 28,060 | 26,962 | 52,050 | ||||||||
Numerator for basic earnings (loss) per share | 299,210 | 166,524 | (144,496 | ) | |||||||
Add: Additional undistributed earnings due to dilutive stock options | 17 | 9 | — | ||||||||
Numerator for diluted earnings (loss) per share | $ | 299,227 | $ | 166,533 | $ | (144,496 | ) | ||||
Denominator: | |||||||||||
Denominator for basic earnings (loss) per share: | |||||||||||
Weighted average shares outstanding | 5,516 | 5,559 | 5,727 | ||||||||
Add: Effect of dilutive stock options | 36 | 30 | — | ||||||||
Denominator for diluted earnings (loss) per share | 5,552 | 5,589 | 5,727 | ||||||||
Graham Holdings Company Common Stockholders: | |||||||||||
Basic earnings (loss) per share from continuing operations | $ | 54.24 | $ | 29.95 | $ | (25.23 | ) | ||||
Diluted earnings (loss) per share from continuing operations | $ | 53.89 | $ | 29.80 | $ | (25.23 | ) |
(1) | Percent of undistributed losses allocated to common stockholders is 100% in 2015 as participating securities are not contractually obligated to share in losses. |
Year Ended December 31 | ||||||||
(in thousands) | 2017 | 2016 | 2015 | |||||
Weighted average restricted stock | 30 | 40 | 52 | |||||
Weighted average stock options | — | — | 39 |
15. | PENSIONS AND OTHER POSTRETIREMENT PLANS |
Pension Plans | |||||||
As of December 31 | |||||||
(in thousands) | 2017 | 2016 | |||||
Change in Benefit Obligation | |||||||
Benefit obligation at beginning of year | $ | 1,160,897 | $ | 1,254,298 | |||
Service cost | 18,687 | 20,461 | |||||
Interest cost | 47,925 | 51,608 | |||||
Amendments | 75 | — | |||||
Actuarial loss (gain) | 73,191 | (32,203 | ) | ||||
Acquisitions | 58,600 | — | |||||
Benefits paid | (74,506 | ) | (60,076 | ) | |||
Special termination benefits | 1,825 | — | |||||
Settlement | — | (73,191 | ) | ||||
Benefit Obligation at End of Year | $ | 1,286,694 | $ | 1,160,897 | |||
Change in Plan Assets | |||||||
Fair value of assets at beginning of year | $ | 2,042,490 | $ | 2,234,268 | |||
Actual return on plan assets | 375,487 | (58,511 | ) | ||||
Benefits paid | (74,506 | ) | (60,076 | ) | |||
Settlement | — | (73,191 | ) | ||||
Fair Value of Assets at End of Year | $ | 2,343,471 | $ | 2,042,490 | |||
Funded Status | $ | 1,056,777 | $ | 881,593 |
SERP | |||||||
As of December 31 | |||||||
(in thousands) | 2017 | 2016 | |||||
Change in Benefit Obligation | |||||||
Benefit obligation at beginning of year | $ | 106,526 | $ | 105,004 | |||
Service cost | 858 | 985 | |||||
Interest cost | 4,233 | 4,384 | |||||
Actuarial loss | 4,041 | 1,120 | |||||
Benefits paid | (5,576 | ) | (4,967 | ) | |||
Benefit Obligation at End of Year | $ | 110,082 | $ | 106,526 | |||
Change in Plan Assets | |||||||
Fair value of assets at beginning of year | $ | — | $ | — | |||
Employer contributions | 5,576 | 4,967 | |||||
Benefits paid | (5,576 | ) | (4,967 | ) | |||
Fair Value of Assets at End of Year | $ | — | $ | — | |||
Funded Status | $ | (110,082 | ) | $ | (106,526 | ) |
Pension Plans | SERP | ||||||||||||||
As of December 31 | As of December 31 | ||||||||||||||
(in thousands) | 2017 | 2016 | 2017 | 2016 | |||||||||||
Noncurrent asset | $ | 1,056,777 | $ | 881,593 | $ | — | $ | — | |||||||
Current liability | — | — | (5,838 | ) | (5,580 | ) | |||||||||
Noncurrent liability | — | — | (104,244 | ) | (100,946 | ) | |||||||||
Recognized Asset (Liability) | $ | 1,056,777 | $ | 881,593 | $ | (110,082 | ) | $ | (106,526 | ) |
Pension Plans | SERP | ||||||
As of December 31 | As of December 31 | ||||||
2017 | 2016 | 2017 | 2016 | ||||
Discount rate | 3.6% | 4.1% | 3.6% | 4.1% | |||
Rate of compensation increase - age graded | 5.0%–1.0% | 5.0%–1.0% | 5.0%–1.0% | 5.0%–1.0% |
(in thousands) | Pension Plans | SERP | |||||
2018 | $ | 73,418 | $ | 5,943 | |||
2019 | $ | 74,433 | $ | 6,320 | |||
2020 | $ | 74,572 | $ | 6,454 | |||
2021 | $ | 75,661 | $ | 6,591 | |||
2022 | $ | 73,921 | $ | 6,719 | |||
2023–2027 | $ | 371,073 | $ | 34,165 |
Pension Plans | |||||||||||
Year Ended December 31 | |||||||||||
(in thousands) | 2017 | 2016 | 2015 | ||||||||
Service cost | $ | 18,687 | $ | 20,461 | $ | 26,294 | |||||
Interest cost | 47,925 | 51,608 | 52,613 | ||||||||
Expected return on assets | (121,411 | ) | (121,470 | ) | (130,571 | ) | |||||
Amortization of prior service cost | 170 | 297 | 320 | ||||||||
Recognized actuarial gain | (4,410 | ) | — | (11,925 | ) | ||||||
Net Periodic Benefit for the Year | (59,039 | ) | (49,104 | ) | (63,269 | ) | |||||
Curtailment | — | — | (3,267 | ) | |||||||
Settlement | — | (17,993 | ) | — | |||||||
Early retirement programs and special separation benefit expense | 1,825 | — | 4,606 | ||||||||
Total Benefit for the Year | $ | (57,214 | ) | $ | (67,097 | ) | $ | (61,930 | ) | ||
Other Changes in Plan Assets and Benefit Obligations Recognized in Other Comprehensive Income | |||||||||||
Current year actuarial (gain) loss | $ | (180,885 | ) | $ | 147,779 | $ | 222,894 | ||||
Current year prior service cost | 75 | — | — | ||||||||
Amortization of prior service cost | (170 | ) | (297 | ) | (320 | ) | |||||
Recognized net actuarial gain | 4,410 | — | 11,925 | ||||||||
Curtailment and settlement | — | 17,993 | (51 | ) | |||||||
Total Recognized in Other Comprehensive Income (Before Tax Effects) | $ | (176,570 | ) | $ | 165,475 | $ | 234,448 | ||||
Total Recognized in Total Benefit and Other Comprehensive Income (Before Tax Effects) | $ | (233,784 | ) | $ | 98,378 | $ | 172,518 |
SERP | |||||||||||
Year Ended December 31 | |||||||||||
(in thousands) | 2017 | 2016 | 2015 | ||||||||
Service cost | $ | 858 | $ | 985 | $ | 1,946 | |||||
Interest cost | 4,233 | 4,384 | 4,550 | ||||||||
Amortization of prior service cost | 455 | 457 | 457 | ||||||||
Recognized actuarial loss | 1,774 | 2,659 | 3,015 | ||||||||
Total Cost for the Year | $ | 7,320 | $ | 8,485 | $ | 9,968 | |||||
Other Changes in Benefit Obligations Recognized in Other Comprehensive Income | |||||||||||
Current year actuarial loss (gain) | $ | 4,041 | $ | 1,120 | $ | (6,544 | ) | ||||
Amortization of prior service cost | (455 | ) | (457 | ) | (457 | ) | |||||
Recognized net actuarial loss | (1,774 | ) | (2,659 | ) | (3,015 | ) | |||||
Curtailment and settlement | — | — | (834 | ) | |||||||
Total Recognized in Other Comprehensive Income (Before Tax Effects) | $ | 1,812 | $ | (1,996 | ) | $ | (10,850 | ) | |||
Total Recognized in Total Cost and Other Comprehensive Income (Before Tax Effects) | $ | 9,132 | $ | 6,489 | $ | (882 | ) |
Pension Plans | SERP | ||||||||||
Year Ended December 31 | Year Ended December 31 | ||||||||||
2017 | 2016 | 2015 | 2017 | 2016 | 2015 | ||||||
Discount rate (1) | 4.1% | 4.3% | 4.4%/4.0% | 4.1% | 4.3% | 4.4%/4.0% | |||||
Expected return on plan assets | 6.25% | 6.5% | 6.5% | — | — | — | |||||
Rate of compensation increase | Age graded (5.0%–1.0%) | 4.0% | 4.0% | Age graded (5.0%–1.0%) | 4.0% | 4.0% |
(1) | As a result of the spin-off of Cable ONE and the sale of the KHE Campuses business, the Company remeasured the accumulated and projected benefit obligation of the pension plan as of July 1, 2015 and September 3, 2015, respectively. As a result of the spin-off of Cable ONE, the accumulated and projected benefit obligation of the SERP was remeasured as of July 1, 2015. The remeasurement changed the discount rate from 4.0% for the first six months to 4.4% for the second half of 2015. |
Pension Plans | SERP | ||||||||||||||
As of December 31 | As of December 31 | ||||||||||||||
(in thousands) | 2017 | 2016 | 2017 | 2016 | |||||||||||
Unrecognized actuarial (gain) loss | $ | (461,779 | ) | $ | (285,304 | ) | $ | 27,225 | $ | 24,958 | |||||
Unrecognized prior service cost | 270 | 365 | 320 | 775 | |||||||||||
Gross Amount | (461,509 | ) | (284,939 | ) | 27,545 | 25,733 | |||||||||
Deferred tax liability (asset) | 124,607 | 113,976 | (7,437 | ) | (10,293 | ) | |||||||||
Net Amount | $ | (336,902 | ) | $ | (170,963 | ) | $ | 20,108 | $ | 15,440 |
2018 | |||||||
(in thousands) | Pension Plans | SERP | |||||
Actuarial (gain) loss recognition | $ | (4,236 | ) | $ | 2,217 | ||
Prior service cost recognition | $ | 148 | $ | 311 |
As of December 31 | |||||
2017 | 2016 | ||||
U.S. equities | 53 | % | 53 | % | |
U.S. stock index fund | 30 | % | 30 | % | |
U.S. fixed income | 11 | % | 11 | % | |
International equities | 6 | % | 6 | % | |
100 | % | 100 | % |
As of December 31, 2017 | |||||||||||||||
(in thousands) | Level 1 | Level 2 | Level 3 | Total | |||||||||||
Cash equivalents and other short-term investments | $ | 73,877 | $ | 181,638 | $ | — | $ | 255,515 | |||||||
Equity securities | |||||||||||||||
U.S. equities | 1,242,139 | — | — | 1,242,139 | |||||||||||
International equities | 138,640 | — | — | 138,640 | |||||||||||
U.S. stock index fund | — | — | 706,202 | 706,202 | |||||||||||
Total Investments | $ | 1,454,656 | $ | 181,638 | $ | 706,202 | $ | 2,342,496 | |||||||
Receivables | 975 | ||||||||||||||
Total | $ | 2,343,471 |
As of December 31, 2016 | |||||||||||||||
(in thousands) | Level 1 | Level 2 | Level 3 | Total | |||||||||||
Cash equivalents and other short-term investments | $ | 61,438 | $ | 162,010 | $ | — | $ | 223,448 | |||||||
Equity securities | |||||||||||||||
U.S. equities | 1,074,528 | — | — | 1,074,528 | |||||||||||
International equities | 120,735 | — | — | 120,735 | |||||||||||
U.S. stock index fund | — | — | 622,865 | 622,865 | |||||||||||
Total Investments | $ | 1,256,701 | $ | 162,010 | $ | 622,865 | $ | 2,041,576 | |||||||
Receivables | 914 | ||||||||||||||
Total | $ | 2,042,490 |
U.S. Stock Index Fund | |||||||
Year Ended December 31 | |||||||
(in thousands) | 2017 | 2016 | |||||
Balance at Beginning of Year | $ | 622,865 | $ | — | |||
Purchases, sales, and settlements, net | (50,000 | ) | 574,000 | ||||
Actual return on plan assets: | |||||||
Gains relating to assets sold | 6,796 | — | |||||
Gains relating to assets still held at year-end | 126,541 | 48,865 | |||||
Balance at End of Year | $ | 706,202 | $ | 622,865 |
Postretirement Plans | |||||||
As of December 31 | |||||||
(in thousands) | 2017 | 2016 | |||||
Change in Benefit Obligation | |||||||
Benefit obligation at beginning of year | $ | 24,171 | $ | 37,391 | |||
Service cost | 1,028 | 1,386 | |||||
Interest cost | 779 | 1,230 | |||||
Actuarial gain | (2,830 | ) | (14,984 | ) | |||
Acquisitions | 516 | — | |||||
Benefits paid, net of Medicare subsidy | (879 | ) | (852 | ) | |||
Benefit Obligation at End of Year | $ | 22,785 | $ | 24,171 | |||
Change in Plan Assets | |||||||
Fair value of assets at beginning of year | $ | — | $ | — | |||
Employer contributions | 879 | 852 | |||||
Benefits paid, net of Medicare subsidy | (879 | ) | (852 | ) | |||
Fair Value of Assets at End of Year | $ | — | $ | — | |||
Funded Status | $ | (22,785 | ) | $ | (24,171 | ) |
Postretirement Plans | |||||||
As of December 31 | |||||||
(in thousands) | 2017 | 2016 | |||||
Current liability | $ | (1,920 | ) | $ | (2,312 | ) | |
Noncurrent liability | (20,865 | ) | (21,859 | ) | |||
Recognized Liability | $ | (22,785 | ) | $ | (24,171 | ) |
1% | 1% | ||||||
(in thousands) | Increase | Decrease | |||||
Benefit obligation at end of year | $ | 1,304 | $ | (1,194 | ) | ||
Service cost plus interest cost | $ | 177 | $ | (158 | ) |
(in thousands) | Postretirement Plans | ||
2018 | $ | 1,920 | |
2019 | $ | 1,885 | |
2020 | $ | 2,054 | |
2021 | $ | 2,086 | |
2022 | $ | 2,153 | |
2023–2027 | $ | 10,178 |
Postretirement Plans | |||||||||||
Year Ended December 31 | |||||||||||
(in thousands) | 2017 | 2016 | 2015 | ||||||||
Service cost | $ | 1,028 | $ | 1,386 | $ | 1,331 | |||||
Interest cost | 779 | 1,230 | 1,299 | ||||||||
Amortization of prior service credit | (148 | ) | (335 | ) | (502 | ) | |||||
Recognized actuarial gain | (3,891 | ) | (1,502 | ) | (996 | ) | |||||
Total (Benefit) Cost for the Year | $ | (2,232 | ) | $ | 779 | $ | 1,132 | ||||
Other Changes in Benefit Obligations Recognized in Other Comprehensive Income | |||||||||||
Current year actuarial gain | $ | (2,830 | ) | $ | (14,984 | ) | $ | (5,296 | ) | ||
Amortization of prior service credit | 148 | 335 | 502 | ||||||||
Recognized actuarial gain | 3,891 | 1,502 | 996 | ||||||||
Total Recognized in Other Comprehensive Income (Before Tax Effects) | $ | 1,209 | $ | (13,147 | ) | $ | (3,798 | ) | |||
Total Recognized in (Benefit) Cost and Other Comprehensive Income (Before Tax Effects) | $ | (1,023 | ) | $ | (12,368 | ) | $ | (2,666 | ) |
As of December 31 | |||||||
(in thousands) | 2017 | 2016 | |||||
Unrecognized actuarial gain | $ | (24,125 | ) | $ | (25,186 | ) | |
Unrecognized prior service credit | (178 | ) | (326 | ) | |||
Gross Amount | (24,303 | ) | (25,512 | ) | |||
Deferred tax liability | 6,561 | 10,205 | |||||
Net Amount | $ | (17,742 | ) | $ | (15,307 | ) |
(in thousands) | 2018 | ||
Actuarial gain recognition | $ | (3,686 | ) |
Prior service credit recognition | $ | (175 | ) |
16. | OTHER NON-OPERATING INCOME (EXPENSE) |
Year Ended December 31 | |||||||||||
(in thousands) | 2017 | 2016 | 2015 | ||||||||
Foreign currency gain (losses), net | $ | 3,310 | $ | (39,890 | ) | $ | (15,564 | ) | |||
Net (loss) gain on sales of businesses | (569 | ) | 18,931 | (23,335 | ) | ||||||
Net losses on sales or write-downs of cost method investments | (184 | ) | (28,571 | ) | (1,124 | ) | |||||
Gain on sale of property, plant and equipment | — | 34,072 | 21,379 | ||||||||
Gain on formation of a joint venture | — | 3,232 | 5,972 | ||||||||
Gain on sale of Classified Ventures | — | — | 4,827 | ||||||||
Net losses on sales or write-down of marketable equity securities | — | (1,791 | ) | (14 | ) | ||||||
Other, net | 1,684 | 1,375 | (764 | ) | |||||||
Total Other Non-Operating Income (Expense) | $ | 4,241 | $ | (12,642 | ) | $ | (8,623 | ) |
17. | ACCUMULATED OTHER COMPREHENSIVE INCOME (LOSS) |
Year Ended December 31, 2017 | |||||||||||
Before-Tax | Income | After-Tax | |||||||||
(in thousands) | Amount | Tax | Amount | ||||||||
Foreign currency translation adjustments: | |||||||||||
Translation adjustments arising during the year | $ | 33,175 | $ | — | $ | 33,175 | |||||
Adjustment for sale of a business with foreign operations | 137 | — | 137 | ||||||||
33,312 | — | 33,312 | |||||||||
Unrealized gains on available-for-sale securities: | |||||||||||
Unrealized gains for the year | 112,086 | (44,834 | ) | 67,252 | |||||||
Pension and other postretirement plans: | |||||||||||
Actuarial gain | 179,674 | (48,511 | ) | 131,163 | |||||||
Prior service cost | (75 | ) | 20 | (55 | ) | ||||||
Amortization of net actuarial gain included in net income | (6,527 | ) | 2,612 | (3,915 | ) | ||||||
Amortization of net prior service cost included in net income | 477 | (191 | ) | 286 | |||||||
173,549 | (46,070 | ) | 127,479 | ||||||||
Cash flow hedge: | |||||||||||
Gain for the year | 112 | (19 | ) | 93 | |||||||
Other Comprehensive Income | $ | 319,059 | $ | (90,923 | ) | $ | 228,136 |
Year Ended December 31, 2016 | |||||||||||
Before-Tax | Income | After-Tax | |||||||||
(in thousands) | Amount | Tax | Amount | ||||||||
Foreign currency translation adjustments: | |||||||||||
Translation adjustments arising during the year | $ | (22,149 | ) | $ | — | $ | (22,149 | ) | |||
Unrealized gains on available-for-sale securities: | |||||||||||
Unrealized gains for the year | 55,507 | (22,203 | ) | 33,304 | |||||||
Reclassification adjustment for net realized loss on sale of available-for-sale securities included in net income | 1,879 | (752 | ) | 1,127 | |||||||
57,386 | (22,955 | ) | 34,431 | ||||||||
Pension and other postretirement plans: | |||||||||||
Actuarial loss | (133,915 | ) | 53,566 | (80,349 | ) | ||||||
Amortization of net actuarial loss included in net income | 1,157 | (463 | ) | 694 | |||||||
Amortization of net prior service cost included in net income | 419 | (167 | ) | 252 | |||||||
Curtailments and settlements included in net income | (17,993 | ) | 7,197 | (10,796 | ) | ||||||
(150,332 | ) | 60,133 | (90,199 | ) | |||||||
Cash flow hedge: | |||||||||||
Loss for the year | (334 | ) | 57 | (277 | ) | ||||||
Other Comprehensive Loss | $ | (115,429 | ) | $ | 37,235 | $ | (78,194 | ) |
Year Ended December 31, 2015 | |||||||||||
Before-Tax | Income | After-Tax | |||||||||
(in thousands) | Amount | Tax | Amount | ||||||||
Foreign currency translation adjustments: | |||||||||||
Translation adjustments arising during the year | $ | (18,898 | ) | $ | — | $ | (18,898 | ) | |||
Adjustment for sales of businesses with foreign operations | 5,501 | — | 5,501 | ||||||||
(13,397 | ) | — | (13,397 | ) | |||||||
Unrealized gains on available-for-sale securities: | |||||||||||
Unrealized gains for the year | 10,620 | (4,248 | ) | 6,372 | |||||||
Reclassification adjustment for realized gain on sale of available-for-sale securities included in net income | (4 | ) | 2 | (2 | ) | ||||||
10,616 | (4,246 | ) | 6,370 | ||||||||
Pension and other postretirement plans: | |||||||||||
Actuarial loss | (211,054 | ) | 84,421 | (126,633 | ) | ||||||
Amortization of net actuarial gain included in net income | (9,906 | ) | 3,962 | (5,944 | ) | ||||||
Amortization of net prior service cost included in net income | 275 | (110 | ) | 165 | |||||||
Curtailments and settlements included in net income | 51 | (21 | ) | 30 | |||||||
Curtailments and settlements included in distribution to Cable ONE | 834 | (333 | ) | 501 | |||||||
(219,800 | ) | 87,919 | (131,881 | ) | |||||||
Cash flow hedge: | |||||||||||
Gain for the year | 179 | (71 | ) | 108 | |||||||
Other Comprehensive Loss | $ | (222,402 | ) | $ | 83,602 | $ | (138,800 | ) |
(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 | Cash Flow Hedge | Accumulated Other Comprehensive Income | ||||||||||||||
As of December 31, 2015 | $ | (4,849 | ) | $ | 58,500 | $ | 261,029 | $ | — | $ | 314,680 | ||||||||
Other comprehensive (loss) income before reclassifications | (22,149 | ) | 33,304 | (80,349 | ) | (290 | ) | (69,484 | ) | ||||||||||
Net amount reclassified from accumulated other comprehensive income | — | 1,127 | (9,850 | ) | 13 | (8,710 | ) | ||||||||||||
Net other comprehensive (loss) income | (22,149 | ) | 34,431 | (90,199 | ) | (277 | ) | (78,194 | ) | ||||||||||
As of December 31, 2016 | (26,998 | ) | 92,931 | 170,830 | (277 | ) | 236,486 | ||||||||||||
Other comprehensive income (loss) before reclassifications | 33,175 | 67,252 | 131,108 | (29 | ) | 231,506 | |||||||||||||
Net amount reclassified from accumulated other comprehensive income | 137 | — | (3,629 | ) | 122 | (3,370 | ) | ||||||||||||
Net other comprehensive income | 33,312 | 67,252 | 127,479 | 93 | 228,136 | ||||||||||||||
Reclassification of stranded tax effects to retained earnings as a result of tax reform | — | 34,706 | 36,227 | — | 70,933 | ||||||||||||||
As of December 31, 2017 | $ | 6,314 | $ | 194,889 | $ | 334,536 | $ | (184 | ) | $ | 535,555 |
Year Ended December 31 | Affected Line Item in the Consolidated Statement of Operations | ||||||||||||
(in thousands) | 2017 | 2016 | 2015 | ||||||||||
Foreign Currency Translation Adjustments: | |||||||||||||
Adjustment for sales of businesses with foreign operations | $ | 137 | $ | — | $ | 5,501 | Other income (expense), net | ||||||
Unrealized Gains on Available-for-Sale Securities: | |||||||||||||
Realized loss (gain) for the year | — | 1,879 | (4 | ) | Other income (expense), net | ||||||||
— | (752 | ) | 2 | (Benefit from) provision for income taxes | |||||||||
— | 1,127 | (2 | ) | Net of tax | |||||||||
Pension and Other Postretirement Plans: | |||||||||||||
Amortization of net actuarial (gain) loss | (6,527 | ) | 1,157 | (9,906 | ) | (1) | |||||||
Amortization of net prior service cost | 477 | 419 | 275 | (1) | |||||||||
Curtailment (gains) losses | — | (17,993 | ) | 51 | (1) | ||||||||
(6,050 | ) | (16,417 | ) | (9,580 | ) | Before tax | |||||||
2,421 | 6,567 | 3,831 | (Benefit from) provision for income taxes | ||||||||||
(3,629 | ) | (9,850 | ) | (5,749 | ) | Net of tax | |||||||
Cash Flow Hedge | |||||||||||||
152 | 16 | 132 | Interest expense | ||||||||||
(30 | ) | (3 | ) | (53 | ) | (Benefit from) provision for income taxes | |||||||
122 | 13 | 79 | Net of tax | ||||||||||
Total reclassification for the year | $ | (3,370 | ) | $ | (8,710 | ) | $ | (171 | ) | 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 15) and are included in non-operating pension and postretirement benefit income in the Company's Consolidated Statements of Operations. |
18. | LEASES AND OTHER COMMITMENTS |
(in thousands) | |||
2018 | $ | 97,935 | |
2019 | 88,298 | ||
2020 | 70,500 | ||
2021 | 56,693 | ||
2022 | 43,976 | ||
Thereafter | 121,875 | ||
$ | 479,277 |
19. | CONTINGENCIES |
20. | BUSINESS SEGMENTS |
Year Ended December 31 | |||||||||||
(in thousands) | 2017 | 2016 | 2015 | ||||||||
Accelerated depreciation | $ | 339 | $ | 1,815 | $ | 17,956 | |||||
Lease obligation losses | — | 2,694 | 8,240 | ||||||||
Severance | 6,099 | 5,902 | 14,234 | ||||||||
Other | 2,627 | 1,441 | 209 | ||||||||
$ | 9,065 | $ | 11,852 | $ | 40,639 |
• | Hoover, a Thomson, GA-based supplier of pressure impregnated kiln-dried lumber and plywood products for fire retardant and preservative applications (acquired in April 2017); Dekko, a Garrett, IN-based manufacturer of electrical workspace solutions, architectural lighting, and electrical components and assemblies (acquired in November 2015); Joyce/Dayton Corp., a Dayton, OH-based manufacturer of screw jacks and other linear motion systems; and Forney, a global supplier of products and systems that control and monitor combustion processes in electric utility and industrial applications; and |
• | SocialCode, a marketing and insights company that manages digital advertising for leading brands; The Slate Group and Foreign Policy Group, which publish online and print magazines and websites; and two investment stage businesses, Panoply and Cybervista. |
Year Ended December 31 | |||||||||||
(in thousands) | 2017 | 2016 | 2015 | ||||||||
Operating Revenues | |||||||||||
Education | $ | 1,516,776 | $ | 1,598,461 | $ | 1,927,521 | |||||
Television broadcasting | 409,916 | 409,718 | 359,192 | ||||||||
Healthcare | 154,202 | 146,962 | 135,550 | ||||||||
Other businesses | 511,003 | 326,888 | 163,967 | ||||||||
Corporate office | — | — | — | ||||||||
Intersegment elimination | (51 | ) | (139 | ) | (116 | ) | |||||
$ | 2,591,846 | $ | 2,481,890 | $ | 2,586,114 | ||||||
Income (Loss) from Operations | |||||||||||
Education | $ | 77,687 | $ | 95,321 | $ | (218,014 | ) | ||||
Television broadcasting | 139,258 | 202,863 | 167,215 | ||||||||
Healthcare | (2,569 | ) | 2,799 | 6,233 | |||||||
Other businesses | (19,263 | ) | (24,901 | ) | (19,900 | ) | |||||
Corporate office | (58,710 | ) | (53,213 | ) | (93,674 | ) | |||||
$ | 136,403 | $ | 222,869 | $ | (158,140 | ) | |||||
Equity in Losses of Affiliates, Net | (3,249 | ) | (7,937 | ) | (697 | ) | |||||
Interest Expense, Net | (27,305 | ) | (32,297 | ) | (30,745 | ) | |||||
Non-Operating Pension and Postretirement Benefit Income, Net | 72,699 | 80,665 | 77,315 | ||||||||
Other Income (Expense), Net | 4,241 | (12,642 | ) | (8,623 | ) | ||||||
Income (Loss) from Continuing Operations before Income Taxes | $ | 182,789 | $ | 250,658 | $ | (120,890 | ) | ||||
Depreciation of Property, Plant and Equipment | |||||||||||
Education | $ | 32,906 | $ | 41,187 | $ | 61,177 | |||||
Television broadcasting | 12,179 | 9,942 | 9,551 | ||||||||
Healthcare | 4,583 | 2,805 | 2,836 | ||||||||
Other businesses | 11,723 | 9,570 | 3,332 | ||||||||
Corporate office | 1,118 | 1,116 | 1,010 | ||||||||
$ | 62,509 | $ | 64,620 | $ | 77,906 | ||||||
Amortization of Intangible Assets and Impairment of Goodwill and | |||||||||||
Other Long-Lived Assets | |||||||||||
Education | $ | 5,162 | $ | 7,516 | $ | 262,353 | |||||
Television broadcasting | 6,349 | 251 | 252 | ||||||||
Healthcare | 7,905 | 6,701 | 6,875 | ||||||||
Other businesses | 31,385 | 13,806 | 9,237 | ||||||||
Corporate office | — | — | — | ||||||||
$ | 50,801 | $ | 28,274 | $ | 278,717 | ||||||
Pension Service Cost | |||||||||||
Education | $ | 9,720 | $ | 11,803 | $ | 15,070 | |||||
Television broadcasting | 1,942 | 1,714 | 1,620 | ||||||||
Healthcare | 665 | — | — | ||||||||
Other businesses | 1,125 | 1,118 | 964 | ||||||||
Corporate office | 5,235 | 5,826 | 6,750 | ||||||||
$ | 18,687 | $ | 20,461 | $ | 24,404 | ||||||
Capital Expenditures | |||||||||||
Education | $ | 27,520 | $ | 26,497 | $ | 42,220 | |||||
Television broadcasting | 16,802 | 27,453 | 9,998 | ||||||||
Healthcare | 2,987 | 2,954 | 3,226 | ||||||||
Other businesses | 9,771 | 13,093 | 6,278 | ||||||||
Corporate office | — | 715 | 311 | ||||||||
$ | 57,080 | $ | 70,712 | $ | 62,033 |
As of December 31 | |||||||
(in thousands) | 2017 | 2016 | |||||
Identifiable Assets | |||||||
Education | $ | 1,592,097 | $ | 1,479,267 | |||
Television broadcasting | 455,884 | 336,631 | |||||
Healthcare | 129,856 | 152,908 | |||||
Other businesses | 855,399 | 644,027 | |||||
Corporate office | 182,905 | 455,209 | |||||
$ | 3,216,141 | $ | 3,068,042 | ||||
Investments in Marketable Equity Securities | 536,315 | 424,229 | |||||
Investments in Affiliates | 128,590 | 58,806 | |||||
Prepaid Pension Cost | 1,056,777 | 881,593 | |||||
Total Assets | $ | 4,937,823 | $ | 4,432,670 |
Year Ended December 31 | |||||||||||
(in thousands) | 2017 | 2016 | 2015 | ||||||||
Operating Revenues | |||||||||||
Kaplan international | $ | 697,999 | $ | 696,362 | $ | 770,273 | |||||
Higher education | 431,425 | 501,784 | 757,135 | ||||||||
Test preparation | 273,298 | 286,556 | 301,607 | ||||||||
Professional (U.S.) | 115,839 | 115,263 | 92,490 | ||||||||
Kaplan corporate and other | 294 | 214 | 6,502 | ||||||||
Intersegment elimination | (2,079 | ) | (1,718 | ) | (486 | ) | |||||
$ | 1,516,776 | $ | 1,598,461 | $ | 1,927,521 | ||||||
Income (Loss) from Operations | |||||||||||
Kaplan international | $ | 51,623 | $ | 48,398 | $ | 53,661 | |||||
Higher education | 16,719 | 39,196 | 29,896 | ||||||||
Test preparation | 11,507 | 9,599 | 16,798 | ||||||||
Professional (U.S.) | 27,558 | 27,436 | 25,676 | ||||||||
Kaplan corporate and other | (29,863 | ) | (29,279 | ) | (344,141 | ) | |||||
Intersegment elimination | 143 | (29 | ) | 96 | |||||||
$ | 77,687 | $ | 95,321 | $ | (218,014 | ) | |||||
Depreciation of Property, Plant and Equipment | |||||||||||
Kaplan international | $ | 14,892 | $ | 17,523 | $ | 17,811 | |||||
Higher education | 9,117 | 13,816 | 15,324 | ||||||||
Test preparation | 5,286 | 6,287 | 9,045 | ||||||||
Professional (U.S.) | 3,041 | 3,006 | 2,613 | ||||||||
Kaplan corporate and other | 570 | 555 | 16,384 | ||||||||
$ | 32,906 | $ | 41,187 | $ | 61,177 | ||||||
Amortization of Intangible Assets | $ | 5,162 | $ | 7,516 | $ | 5,523 | |||||
Impairment of Goodwill and Other Long-Lived Assets | $ | — | $ | — | $ | 256,830 | |||||
Pension Service Cost | |||||||||||
Kaplan international | $ | 264 | $ | 268 | $ | 424 | |||||
Higher education | 5,269 | 6,544 | 9,975 | ||||||||
Test preparation | 2,755 | 3,072 | 3,101 | ||||||||
Professional (U.S.) | 913 | 1,076 | 874 | ||||||||
Kaplan corporate and other | 519 | 843 | 696 | ||||||||
$ | 9,720 | $ | 11,803 | $ | 15,070 | ||||||
Capital Expenditures | |||||||||||
Kaplan international | $ | 21,667 | $ | 16,252 | $ | 22,673 | |||||
Higher education | 2,158 | 3,140 | 8,131 | ||||||||
Test preparation | 1,038 | 4,672 | 8,720 | ||||||||
Professional (U.S.) | 2,475 | 2,224 | 2,071 | ||||||||
Kaplan corporate and other | 182 | 209 | 625 | ||||||||
$ | 27,520 | $ | 26,497 | $ | 42,220 |
As of December 31 | |||||||
(in thousands) | 2017 | 2016 | |||||
Identifiable Assets | |||||||
Kaplan international | $ | 1,115,919 | $ | 950,922 | |||
Higher education | 231,986 | 278,977 | |||||
Test preparation | 130,938 | 133,709 | |||||
Professional (U.S.) | 91,630 | 94,150 | |||||
Kaplan corporate and other | 21,624 | 21,509 | |||||
$ | 1,592,097 | $ | 1,479,267 |
21. | SUMMARY OF QUARTERLY OPERATING RESULTS AND COMPREHENSIVE INCOME (UNAUDITED) |
(in thousands, except per share amounts) | First Quarter | Second Quarter | Third Quarter | Fourth Quarter | |||||||||||
Operating Revenues | |||||||||||||||
Education | $ | 372,975 | $ | 386,698 | $ | 377,033 | $ | 380,953 | |||||||
Advertising | 69,221 | 77,437 | 74,198 | 84,517 | |||||||||||
Other | 140,521 | 211,952 | 205,994 | 210,347 | |||||||||||
582,717 | 676,087 | 657,225 | 675,817 | ||||||||||||
Operating Costs and Expenses | |||||||||||||||
Operating | 325,687 | 381,747 | 374,987 | 371,922 | |||||||||||
Selling, general and administrative | 225,289 | 208,973 | 228,051 | 225,477 | |||||||||||
Depreciation of property, plant and equipment | 14,652 | 15,871 | 16,002 | 15,984 | |||||||||||
Amortization of intangible assets | 6,836 | 10,531 | 10,923 | 12,897 | |||||||||||
Impairment of goodwill and other long-lived assets | — | 9,224 | 312 | 78 | |||||||||||
572,464 | 626,346 | 630,275 | 626,358 | ||||||||||||
Income from Operations | 10,253 | 49,741 | 26,950 | 49,459 | |||||||||||
Equity in earnings (losses) of affiliates, net | 649 | 1,331 | (532 | ) | (4,697 | ) | |||||||||
Interest income | 1,363 | 1,173 | 861 | 3,184 | |||||||||||
Interest expense | (8,129 | ) | (9,035 | ) | (8,619 | ) | (8,103 | ) | |||||||
Non-operating pension and postretirement benefit income, net | 18,801 | 18,620 | 17,621 | 17,657 | |||||||||||
Other income (expense), net | 849 | 4,069 | 1,963 | (2,640 | ) | ||||||||||
Income Before Income Taxes | 23,786 | 65,899 | 38,244 | 54,860 | |||||||||||
Provision for (Benefit from) Income Taxes | 2,700 | 23,900 | 13,400 | (159,700 | ) | ||||||||||
Net Income | 21,086 | 41,999 | 24,844 | 214,560 | |||||||||||
Net Income Attributable to Noncontrolling Interests | — | (3 | ) | (60 | ) | (382 | ) | ||||||||
Net Income Attributable to Graham Holdings Company Common Stockholders | $ | 21,086 | $ | 41,996 | $ | 24,784 | $ | 214,178 | |||||||
Per Share Information Attributable to Graham Holdings Company Common Stockholders | |||||||||||||||
Basic net income per common share | $ | 3.77 | $ | 7.51 | $ | 4.45 | $ | 38.76 | |||||||
Basic average number of common shares outstanding | 5,535 | 5,539 | 5,518 | 5,473 | |||||||||||
Diluted net income per common share | $ | 3.75 | $ | 7.46 | $ | 4.42 | $ | 38.52 | |||||||
Diluted average number of common shares outstanding | 5,569 | 5,577 | 5,554 | 5,509 | |||||||||||
Quarterly comprehensive income | $ | 39,368 | $ | 59,135 | $ | 64,029 | $ | 367,648 |
(in thousands, except per share amounts) | First Quarter | Second Quarter | Third Quarter | Fourth Quarter | |||||||||||
Operating Revenues | |||||||||||||||
Education | $ | 401,006 | $ | 419,144 | $ | 386,936 | $ | 391,261 | |||||||
Advertising | 73,104 | 75,494 | 91,597 | 90,707 | |||||||||||
Other | 127,630 | 134,295 | 143,105 | 147,611 | |||||||||||
601,740 | 628,933 | 621,638 | 629,579 | ||||||||||||
Operating Costs and Expenses | |||||||||||||||
Operating | 316,228 | 318,612 | 314,513 | 320,677 | |||||||||||
Selling, general and administrative | 226,294 | 229,442 | 232,080 | 208,281 | |||||||||||
Depreciation of property, plant and equipment | 16,761 | 16,045 | 16,097 | 15,717 | |||||||||||
Amortization of intangible assets | 6,262 | 6,278 | 6,620 | 7,511 | |||||||||||
Impairment of goodwill | — | — | — | 1,603 | |||||||||||
565,545 | 570,377 | 569,310 | 553,789 | ||||||||||||
Income from Operations | 36,195 | 58,556 | 52,328 | 75,790 | |||||||||||
Equity in earnings (losses) of affiliates, net | 1,004 | (891 | ) | (1,008 | ) | (7,042 | ) | ||||||||
Interest income | 591 | 721 | 740 | 1,041 | |||||||||||
Interest expense | (7,948 | ) | (7,971 | ) | (8,614 | ) | (10,857 | ) | |||||||
Non-operating pension and postretirement benefit income, net | 15,677 | 15,584 | 15,705 | 33,699 | |||||||||||
Other income (expense), net | 15,096 | 19,000 | (18,225 | ) | (28,513 | ) | |||||||||
Income Before Income Taxes | 60,615 | 84,999 | 40,926 | 64,118 | |||||||||||
Provision for Income Taxes | 22,400 | 23,800 | 7,800 | 27,200 | |||||||||||
Net Income | 38,215 | 61,199 | 33,126 | 36,918 | |||||||||||
Net Income Attributable to Noncontrolling Interests | (435 | ) | (433 | ) | — | — | |||||||||
Net Income Attributable to Graham Holdings Company Common Stockholders | $ | 37,780 | $ | 60,766 | $ | 33,126 | $ | 36,918 | |||||||
Per Share Information Attributable to Graham Holdings Company Common Stockholders | |||||||||||||||
Basic net income per common share | $ | 6.63 | $ | 10.82 | $ | 5.90 | $ | 6.60 | |||||||
Basic average number of common shares outstanding | 5,623 | 5,544 | 5,544 | 5,527 | |||||||||||
Diluted net income per common share | $ | 6.59 | $ | 10.76 | $ | 5.87 | $ | 6.57 | |||||||
Diluted average number of common shares outstanding | 5,652 | 5,574 | 5,574 | 5,556 | |||||||||||
Quarterly comprehensive income | $ | 41,015 | $ | 49,996 | $ | 40,331 | $ | (40,946 | ) |
First Quarter | Second Quarter | Third Quarter | Fourth Quarter | |||||||||||||
2017 | ||||||||||||||||
| Charges of $6.3 million related to restructuring and non-operating Separation Incentive Program charges at the education division ($0.3 million, $0.4 million, $1.1 million and $4.5 million in the first, second, third and fourth quarters, respectively) | $ | (0.05 | ) | $ | (0.06 | ) | $ | (0.20 | ) | $ | (0.81 | ) | |||
| Goodwill and long-lived assets impairment charges of $5.8 million at other businesses | $ | (1.03 | ) | ||||||||||||
| Gains, net, of $2.1 million for non-operating foreign currency gains (losses) ($1.1 million gain, $2.2 million gain, $0.9 million gain and $2.1 million loss in the first, second, third and fourth quarters, respectively) | $ | 0.19 | $ | 0.39 | $ | 0.16 | $ | (0.37 | ) | ||||||
| Net deferred tax benefits of $177.5 million related to the Tax Act | $ | 31.68 | |||||||||||||
| Income tax benefit of $5.9 million related to stock compensation | $ | 1.06 |
2016 | ||||||||||||||||
| Charges of $7.7 million related to restructuring at the education division ($1.2 million, $0.9 million, $1.1 million and $4.5 million in the first, second, third and fourth quarters, respectively) | $ | (0.21 | ) | $ | (0.15 | ) | $ | (0.19 | ) | $ | (0.81 | ) | |||
| Non-operating settlement gain of $10.8 million related to a bulk lump sum pension offering | $ | 1.92 | |||||||||||||
| Non-operating gain, net, of $20.0 million from the sales of land and marketable equity securities ($1.1 million gain, $23.9 million gain and $5.0 million loss in the first, second and fourth quarters, respectively) | $ | 0.19 | $ | 4.23 | $ | (0.90 | ) | ||||||||
| Non-operating gain of $13.6 million arising from the sale of a business and the formation of a joint venture ($11.9 million and $1.7 million in the first and second quarters, respectively) | $ | 2.08 | $ | 0.29 | |||||||||||
| Non-operating expense of $24.1 million from the write-down of cost method investments and investments in affiliates ($9.6 million and $14.5 million in the third and fourth quarters, respectively) | $ | (1.70 | ) | $ | (2.57 | ) | |||||||||
| Losses, net, of $25.5 million for non-operating foreign currency losses ($3.4 million, $15.4 million, $2.4 million and $4.2 million in the first, second, third and fourth quarters, respectively) | $ | (0.60 | ) | $ | (2.73 | ) | $ | (0.43 | ) | $ | (0.75 | ) | |||
| Net nonrecurring $8.3 million deferred tax benefit related to Kaplan’s international operations | $ | 1.47 | |||||||||||||
| Favorable $5.6 million out of period deferred tax adjustment related to the KHE goodwill impairment recorded in the third quarter of 2015 | $ | 1.00 |
(in thousands, except per share amounts) | 2017 | 2016 | 2015 | 2014 | 2013 | ||||||||||||||
Results of Operations | |||||||||||||||||||
Operating revenues | $ | 2,591,846 | $ | 2,481,890 | $ | 2,586,114 | $ | 2,737,032 | $ | 2,600,602 | |||||||||
Income (loss) from operations | 136,403 | 222,869 | (158,140 | ) | 149,402 | 107,925 | |||||||||||||
Income (loss) from continuing operations | 302,489 | 169,458 | (141,390 | ) | 765,403 | 64,731 | |||||||||||||
Net income (loss) attributable to Graham Holdings Company common stockholders | 302,044 | 168,590 | (101,286 | ) | 1,292,996 | 236,010 | |||||||||||||
Per Share Amounts | |||||||||||||||||||
Basic earnings (loss) per common share attributable to Graham Holdings Company common stockholders | |||||||||||||||||||
Income (loss) from continuing operations | $ | 54.24 | $ | 29.95 | $ | (25.23 | ) | $ | 115.88 | $ | 8.62 | ||||||||
Net income (loss) | 54.24 | 29.95 | (17.87 | ) | 195.81 | 32.10 | |||||||||||||
Diluted earnings (loss) per common share attributable to Graham Holdings Company common stockholders | |||||||||||||||||||
Income (loss) from continuing operations | $ | 53.89 | $ | 29.80 | $ | (25.23 | ) | $ | 115.40 | $ | 8.61 | ||||||||
Net income (loss) | 53.89 | 29.80 | (17.87 | ) | 195.03 | 32.05 | |||||||||||||
Weighted average shares outstanding: | |||||||||||||||||||
Basic | 5,516 | 5,559 | 5,727 | 6,470 | 7,238 | ||||||||||||||
Diluted | 5,552 | 5,589 | 5,727 | 6,559 | 7,333 | ||||||||||||||
Cash dividends per common share | $ | 5.08 | $ | 4.84 | $ | 9.10 | $ | 10.20 | $ | — | |||||||||
Graham Holdings Company common stockholders’ equity per common share | $ | 529.59 | $ | 439.88 | $ | 429.15 | $ | 541.54 | $ | 446.73 | |||||||||
Financial Position | |||||||||||||||||||
Working capital | $ | 857,192 | $ | 1,052,385 | $ | 1,135,573 | $ | 639,911 | $ | 768,278 | |||||||||
Total assets | 4,937,823 | 4,432,670 | 4,352,825 | 5,752,319 | 5,811,046 | ||||||||||||||
Long-term debt | 486,561 | 485,719 | 399,800 | 399,545 | 447,608 | ||||||||||||||
Graham Holdings Company common stockholders’ equity | 2,915,145 | 2,452,941 | 2,490,698 | 3,140,299 | 3,300,067 |
• | Charges of $6.3 million ($1.12 per share) related to restructuring and non-operating Separation Incentive Program charges at the education division |
• | Goodwill and other long-lived assets impairment charges of $5.8 million ($1.03 per share) in other businesses |
• | Gains, net, of $2.1 million ($0.37 per share) from non-operating foreign currency gains |
• | Net deferred tax benefits of $177.5 million ($31.68 per share) related to the Tax Act |
• | Income tax benefit of $5.9 million ($1.06 per share) related to stock compensation |
• | Charges of $7.7 million ($1.36 per share) related to restructuring at the education division |
• | Non-operating settlement gain of $10.8 million ($1.92 per share) related to a bulk lump sum pension offering |
• | $20.0 million ($3.52 per share) net non-operating gain from the sales of land and marketable equity securities |
• | $13.6 million ($2.37 per share) non-operating gain arising from the sale of a business and the formation of a joint venture |
• | $24.1 million ($4.27 per share) non-operating expense from the write-down of cost method investments and investments in affiliates |
• | Losses, net, of $25.5 million ($4.51 per share) from non-operating foreign currency losses |
• | Net nonrecurring $8.3 million ($1.47 per share) deferred tax benefit related to Kaplan’s international operations |
• | Favorable $5.6 million ($1.00 per share) out of period deferred tax adjustment related to the KHE goodwill impairment from 2015 |
• | Goodwill and other long-lived assets impairment charges of $225.2 million ($38.96 per share) at the education division and other business |
• | Charges of $28.9 million ($4.97 per share) related to restructuring and non-operating Special Incentive Program charges at the education division, corporate office and other businesses |
• | $15.3 million ($2.64 per share) in expense related to the modification of stock option awards and restricted stock awards |
• | Net non-operating losses of $15.7 million ($2.82 per share) arising from the sales of five businesses and an investment, and on the formation of a joint venture |
• | $13.2 million ($2.27 per share) gain on the sale of land |
• | Losses, net, of $9.7 million ($1.67 per share) from non-operating unrealized foreign currency losses |
• | Charges of $20.2 million ($3.05 per share) related to restructuring and non-operating early retirement program expense and related charges at the education division and corporate office |
• | Intangible and other long-lived assets impairment charge of $11.2 million ($1.69 per share) at the education division and other business |
• | Gain from the sale of Classified Ventures of $249.8 million ($37.68 per share) |
• | $58.2 million ($8.78 per share) gain from the Classified Ventures’ sale of apartments.com |
• | Gain from the Berkshire exchange transaction of $266.7 million ($40.23 per share) |
• | $81.8 million ($12.34 per share) gain on the sale of the corporate headquarters building |
• | Losses, net, of $7.1 million ($1.08 per share) from non-operating unrealized foreign currency losses |
• | Charges of $25.3 million ($3.46 per share) related to severance and restructuring at the education division |
• | Intangible assets impairment charge of $3.2 million ($0.44 per share) at the education division |
• | Write-down of a marketable equity security of $6.7 million ($0.91 per share) |
• | Losses, net, of $8.6 million ($1.17 per share) from non-operating unrealized foreign currency losses |
Document and Entity Information |
12 Months Ended |
---|---|
Dec. 31, 2017 | |
Entity Information [Line Items] | |
Document Type | 8-K |
Amendment Flag | false |
Document Period End Date | Dec. 31, 2017 |
Trading Symbol | ghc |
Entity Registrant Name | GRAHAM HOLDINGS CO |
Entity Central Index Key | 0000104889 |
Consolidated Statements of Operations - USD ($) shares in Thousands, $ in Thousands |
3 Months Ended | 12 Months Ended | |||||||||
---|---|---|---|---|---|---|---|---|---|---|---|
Dec. 31, 2017 |
Sep. 30, 2017 |
Jun. 30, 2017 |
Mar. 31, 2017 |
Dec. 31, 2016 |
Sep. 30, 2016 |
Jun. 30, 2016 |
Mar. 31, 2016 |
Dec. 31, 2017 |
Dec. 31, 2016 |
Dec. 31, 2015 |
|
Operating Revenues | |||||||||||
Education | $ 380,953 | $ 377,033 | $ 386,698 | $ 372,975 | $ 391,261 | $ 386,936 | $ 419,144 | $ 401,006 | $ 1,517,659 | $ 1,598,347 | $ 1,927,405 |
Advertising | 84,517 | 74,198 | 77,437 | 69,221 | 90,707 | 91,597 | 75,494 | 73,104 | 305,373 | 330,902 | 299,076 |
Other | 210,347 | 205,994 | 211,952 | 140,521 | 147,611 | 143,105 | 134,295 | 127,630 | 768,814 | 552,641 | 359,633 |
Total Operating Revenues | 675,817 | 657,225 | 676,087 | 582,717 | 629,579 | 621,638 | 628,933 | 601,740 | 2,591,846 | 2,481,890 | 2,586,114 |
Operating Costs and Expenses | |||||||||||
Operating | 371,922 | 374,987 | 381,747 | 325,687 | 320,677 | 314,513 | 318,612 | 316,228 | 1,454,343 | 1,270,030 | 1,306,863 |
Selling, general and administrative | 225,477 | 228,051 | 208,973 | 225,289 | 208,281 | 232,080 | 229,442 | 226,294 | 887,790 | 896,097 | 1,080,768 |
Depreciation of property, plant and equipment | 15,984 | 16,002 | 15,871 | 14,652 | 15,717 | 16,097 | 16,045 | 16,761 | 62,509 | 64,620 | 77,906 |
Amortization of Intangible Assets | 12,897 | 10,923 | 10,531 | 6,836 | 7,511 | 6,620 | 6,278 | 6,262 | 41,187 | 26,671 | 19,017 |
Impairment of goodwill and other long-lived assets | 78 | 312 | 9,224 | 0 | 9,614 | 1,603 | 259,700 | ||||
Total Operating Costs and Expenses | 626,358 | 630,275 | 626,346 | 572,464 | 553,789 | 569,310 | 570,377 | 565,545 | 2,455,443 | 2,259,021 | 2,744,254 |
Income (Loss) from Operations | 49,459 | 26,950 | 49,741 | 10,253 | 75,790 | 52,328 | 58,556 | 36,195 | 136,403 | 222,869 | (158,140) |
Equity in losses of affiliates, net | (4,697) | (532) | 1,331 | 649 | (7,042) | (1,008) | (891) | 1,004 | (3,249) | (7,937) | (697) |
Interest Income | 3,184 | 861 | 1,173 | 1,363 | 1,041 | 740 | 721 | 591 | 6,581 | 3,093 | 1,909 |
Interest expense | (8,103) | (8,619) | (9,035) | (8,129) | (10,857) | (8,614) | (7,971) | (7,948) | (33,886) | (35,390) | (32,654) |
Non-operating pension and postretirement benefit income, net | 17,657 | 17,621 | 18,620 | 18,801 | 33,699 | 15,705 | 15,584 | 15,677 | 72,699 | 80,665 | 77,315 |
Other income (expense), net | (2,640) | 1,963 | 4,069 | 849 | (28,513) | (18,225) | 19,000 | 15,096 | 4,241 | (12,642) | (8,623) |
Income (Loss) from Continuing Operations Before Income Taxes | 54,860 | 38,244 | 65,899 | 23,786 | 64,118 | 40,926 | 84,999 | 60,615 | 182,789 | 250,658 | (120,890) |
(Benefit from) Provision for Income Taxes | (159,700) | 13,400 | 23,900 | 2,700 | 27,200 | 7,800 | 23,800 | 22,400 | (119,700) | 81,200 | 20,500 |
Income (Loss) from Continuing Operations | 302,489 | 169,458 | (141,390) | ||||||||
Income from Discontinued Operations, Net of Tax | 0 | 0 | 42,170 | ||||||||
Net Income (Loss) | 214,560 | 24,844 | 41,999 | 21,086 | 36,918 | 33,126 | 61,199 | 38,215 | 302,489 | 169,458 | (99,220) |
Net Income Attributable to Noncontrolling Interests | (382) | (60) | (3) | 0 | 0 | 0 | (433) | (435) | (445) | (868) | (1,435) |
Net Income (Loss) Attributable to Graham Holdings Company | 302,044 | 168,590 | (100,655) | ||||||||
Redeemable Preferred Stock Dividends | 0 | 0 | (631) | ||||||||
Net income (loss) attributable to Graham Holdings Company common stockholders | 214,178 | 24,784 | 41,996 | 21,086 | 36,918 | 33,126 | 60,766 | 37,780 | 302,044 | 168,590 | (101,286) |
Amounts Attributable to Graham Holdings Company Common Stockholders | |||||||||||
Income (loss) from continuing operations | 302,044 | 168,590 | (143,456) | ||||||||
Income from Discontinued Operations, Net of Tax | 0 | 0 | 42,170 | ||||||||
Net income (loss) attributable to Graham Holdings Company common stockholders | $ 214,178 | $ 24,784 | $ 41,996 | $ 21,086 | $ 36,918 | $ 33,126 | $ 60,766 | $ 37,780 | $ 302,044 | $ 168,590 | $ (101,286) |
Per Share Information Attributable to Graham Holdings Company Common Stockholders | |||||||||||
Basic income (loss) per common share from continuing operations in dollars per share | $ 54.24 | $ 29.95 | $ (25.23) | ||||||||
Basic income per common share from discontinued operations in dollars per share | 0.00 | 0.00 | 7.36 | ||||||||
Basic net income (loss) per common share in dollars per share | $ 38.76 | $ 4.45 | $ 7.51 | $ 3.77 | $ 6.60 | $ 5.90 | $ 10.82 | $ 6.63 | $ 54.24 | $ 29.95 | $ (17.87) |
Basic average number of common shares outstanding in shares | 5,473 | 5,518 | 5,539 | 5,535 | 5,527 | 5,544 | 5,544 | 5,623 | 5,516 | 5,559 | 5,727 |
Diluted income (loss) per common share from continuing operations in dollars per share | $ 53.89 | $ 29.80 | $ (25.23) | ||||||||
Diluted income per common share from discontinued operations in dollars per share | 0.00 | 0.00 | 7.36 | ||||||||
Diluted net income (loss) per common share in dollars per share | $ 38.52 | $ 4.42 | $ 7.46 | $ 3.75 | $ 6.57 | $ 5.87 | $ 10.76 | $ 6.59 | $ 53.89 | $ 29.80 | $ (17.87) |
Diluted average number of common shares outstanding in shares | 5,509 | 5,554 | 5,577 | 5,569 | 5,556 | 5,574 | 5,574 | 5,652 | 5,552 | 5,589 | 5,727 |
Consolidated Balance Sheets (Parentheticals) - $ / shares |
Dec. 31, 2017 |
Dec. 31, 2016 |
---|---|---|
Preferred Stock, par value per share | $ 1 | $ 1 |
Preferred Stock, shares authorized | 977,000 | 977,000 |
Preferred Stock, shares issued | 0 | 0 |
Class A Common Stock [Member] | ||
Common Stock, par value per share | $ 1 | $ 1 |
Common Stock, shares authorized | 7,000,000 | 7,000,000 |
Common Stock, shares issued | 964,001 | 964,001 |
Common Stock, shares outstanding | 964,001 | 964,001 |
Class B Common Stock [Member] | ||
Common Stock, par value per share | $ 1 | $ 1 |
Common Stock, shares authorized | 40,000,000 | 40,000,000 |
Common Stock, shares issued | 19,035,999 | 19,035,999 |
Common Stock, shares outstanding | 4,540,493 | 4,612,435 |
Treasury Stock | 14,495,506 | 14,423,564 |
Organization and Nature of Operations |
12 Months Ended | ||||||||||||||||||||||||
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Dec. 31, 2017 | |||||||||||||||||||||||||
Organization, Consolidation and Presentation of Financial Statements [Abstract] | |||||||||||||||||||||||||
Organization and Nature of Operations | ORGANIZATION AND NATURE OF OPERATIONS 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 seven television broadcasting stations. Education—Kaplan, Inc. provides an extensive range of educational services for students and professionals. Kaplan’s various businesses comprise four categories: Kaplan International, Higher Education (KHE), Test Preparation (KTP) and Professional (U.S.). Media—The Company’s diversified media operations comprise television broadcasting, several websites and print publications, and a marketing solutions provider. Television broadcasting. As of December 31, 2017, the Company owned seven television stations located in Houston, TX; Detroit, MI; Orlando, FL; San Antonio, TX; Roanoke, VA; and two stations in Jacksonville, FL. All stations are network-affiliated except for WJXT in Jacksonville, FL. Other—The Company’s other business operations include home health and hospice services and manufacturing. Recasting of Prior Period Information—On January 1, 2018, the Company adopted new accounting guidance that changes the presentation of net periodic pension cost and net periodic postretirement benefit cost for defined benefit plans. The guidance requires an issuer to disaggregate the service cost component of net periodic pension and postretirement benefit cost from other components and include the service cost in the same line item(s) as other compensation costs arising from services rendered by employees during the period. Other components of net periodic pension cost and net periodic postretirement benefit cost are recognized after income from operations. In combination with the presentation change to net periodic pension cost and net periodic postretirement benefit cost, the Company allocated its costs associated with fringe benefits between operating expenses and selling, general and administrative expenses. Previously, costs related to fringe benefits were generally classified as selling, general and administrative expenses. The amounts in the previously issued financial statements have been reclassified to conform to the reclassified presentation. On March 22, 2018, Kaplan completed the sale of the institutional assets and operations of Kaplan University (KU) to an Indiana non-profit, public benefit corporation that is a subsidiary affiliated with Purdue University (Purdue) (see Note 3). As a result of the transaction, the Company reorganized its operations into the following six reportable segments for the purpose of making operating decisions and assessing performance: Kaplan Higher Education, Kaplan Professional (U.S.), Kaplan Test Preparation, Kaplan International, Television Broadcasting and Healthcare. The Company has recast certain prior period amounts to reflect the adoption of the new presentation of net periodic pension cost and net periodic postretirement benefit cost for defined benefit plans; the reclassification of costs associated with fringe benefits between operating expenses and selling, general and administrative expenses; and the changes to the reportable segments that took effect in the first quarter of 2018. These changes impacted the following Notes to the Consolidated Financial Statements:
The changes had no impact on the Company's income (loss) from continuing operations or net income (loss) for any period reported in the Consolidated Statements of Operations. The changes affected the operating, and selling, general and administrative expenses, and decreased the income (loss) from operations for each reported period as a result of the adoption of the new accounting guidance that changes the presentation of net periodic pension cost and net periodic postretirement benefit cost for defined benefit plans. The changes referred to above had no impact on the Company's historical consolidated financial position or cash flows. |
Summary of Significant Accounting Policies |
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Accounting Policies [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Summary of Significant Accounting Policies | SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES Basis of Presentation and Principles of Consolidation. The accompanying Consolidated Financial Statements have been prepared in accordance with generally accepted accounting principles (GAAP) in the United States and include the assets, liabilities, results of operations and cash flows of the Company and its majority-owned and controlled subsidiaries. All significant intercompany accounts and transactions have been eliminated in consolidation. Reclassifications. Certain amounts in previously issued financial statements have been reclassified to conform with the 2017 presentation. This includes the reclassification of $19.8 million and $19.2 million from other revenue to advertising revenue in the Consolidated Statements of Operations for the years ended December 31, 2016 and 2015, respectively. Use of Estimates. The preparation of financial statements in conformity with GAAP requires management to make estimates and judgments that affect the amounts reported in the financial statements. 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. On an ongoing basis, the Company evaluates its estimates and assumptions. Business Combinations. The purchase price of an acquisition is allocated to the assets acquired, including intangible assets, and liabilities assumed, based on their respective fair values at the acquisition date. Acquisition-related costs are expensed as incurred. The excess of the cost of an acquired entity over the net of the amounts assigned to the assets acquired and liabilities assumed is recognized as goodwill. The net assets and results of operations of an acquired entity are included in the Company’s Consolidated Financial Statements from the acquisition date. Cash and Cash Equivalents. Cash and cash equivalents consist of cash on hand, short-term investments with original maturities of three months or less and investments in money market funds with weighted average maturities of three months or less. Restricted Cash. Restricted cash represents amounts held for students that were received from U.S. Federal and state governments under various aid grant and loan programs, such as Title IV of the U.S. Federal Higher Education Act of 1965 (Higher Education Act), as amended, that the Company is required to maintain pursuant to U.S. Department of Education (ED) and other regulations. Federal regulations stipulate that the Company has a fiduciary responsibility to segregate Federal funds from all other funds to ensure the funds are only used for the benefit of eligible students. The regulations further indicate that funds received under Federal aid programs are held in trust for the intended student beneficiary and the ED, and as trustee of these funds, the Company may not use the funds for any other purpose until the funds are applied to eligible student charges, which occurs within three days of the receipt of the funds. Restricted cash also includes (i) certain funds that the Company may be required to return if a student who receives Title IV program funds withdraws from a program and (ii) funds required to be held by non-U.S. higher education institutions for prepaid tuition. Concentration of Credit Risk. Cash and cash equivalents are maintained with several financial institutions domestically and internationally. Deposits held with banks may exceed the amount of insurance provided on such deposits. Generally, these deposits may be redeemed upon demand and are maintained with financial institutions with investment-grade credit ratings. The Company routinely assesses the financial strength of significant customers, and this assessment, combined with the large number and geographical diversity of its customers, limits the Company’s concentration of risk with respect to trade accounts receivable. Allowance for Doubtful Accounts. Accounts receivable have been reduced by an allowance for amounts that may be uncollectible in the future. This estimated allowance is based primarily on the aging category, historical collection experience and management’s evaluation of the financial condition of the customer. The Company generally considers an account past due or delinquent when a student or customer misses a scheduled payment. The Company writes off accounts receivable balances deemed uncollectible against the allowance for doubtful accounts following the passage of a certain period of time, or generally when the account is turned over for collection to an outside collection agency. Investments in Marketable Equity Securities. The Company’s investments in marketable equity securities are classified as available-for-sale and, therefore, are recorded at fair value in the Consolidated Financial Statements, with the change in fair value during the period excluded from earnings and recorded net of income taxes as a separate component of other comprehensive income. If the fair value of a marketable equity security declines below its cost basis and the decline is considered other than temporary, the Company will record a write-down, which is included in earnings. The Company uses the average cost method to determine the basis of the securities sold or reclassified out of other comprehensive income. Fair Value Measurements. Fair value measurements are determined based on the assumptions that a market participant would use in pricing an asset or liability based on a three-tiered hierarchy that draws a distinction between market participant assumptions based on (i) observable inputs, such as quoted prices in active markets (Level 1); (ii) inputs other than quoted prices in active markets that are observable either directly or indirectly (Level 2); and (iii) unobservable inputs that require the Company to use present value and other valuation techniques in the determination of fair value (Level 3). Financial assets and liabilities are classified in their entirety based on the lowest level of input that is significant to the fair value measure. The Company’s assessment of the significance of a particular input to the fair value measurements requires judgment and may affect the valuation of the assets and liabilities being measured and their placement within the fair value hierarchy. For assets that are measured using quoted prices in active markets, the total fair value is the published market price per unit multiplied by the number of units held, without consideration of transaction costs. Assets and liabilities that are measured using significant other observable inputs are primarily valued by reference to quoted prices of similar assets or liabilities in active markets, adjusted for any terms specific to that asset or liability. The Company measures certain assets—including goodwill; intangible assets; property, plant and equipment; cost and equity-method investments—at fair value on a nonrecurring basis when they are deemed to be impaired. The fair value of these assets is determined with valuation techniques using the best information available and may include quoted market prices, market comparables and discounted cash flow models. Fair Value of Financial Instruments. The carrying amounts reported in the Company’s Consolidated Financial Statements for cash and cash equivalents, restricted cash, accounts receivable, accounts payable and accrued liabilities, the current portion of deferred revenue and the current portion of debt approximate fair value because of the short-term nature of these financial instruments. The fair value of long-term debt is determined based on a number of observable inputs, including the current market activity of the Company’s publicly traded notes, trends in investor demands and market values of comparable publicly traded debt. The fair value of the interest rate hedge is determined based on a number of observable inputs, including time to maturity and market interest rates. Inventories and Contracts in Progress. Inventories and contracts in progress are stated at the lower of cost or net realizable values and are based on the first-in, first-out (FIFO) method. Inventory costs include direct material, direct and indirect labor, and applicable manufacturing overhead. The Company allocates manufacturing overhead based on normal production capacity and recognizes unabsorbed manufacturing costs in earnings. The provision for excess and obsolete inventory is based on management’s evaluation of inventories on hand relative to historical usage, estimated future usage and technological developments. Property, Plant and Equipment. Property, plant and equipment is recorded at cost and includes interest capitalized in connection with major long-term construction projects. Replacements and major improvements are capitalized; maintenance and repairs are expensed as incurred. Depreciation is calculated using the straight-line method over the estimated useful lives of the property, plant and equipment: 3 to 20 years for machinery and equipment; 20 to 50 years for buildings. The costs of leasehold improvements are amortized over the lesser of their useful lives or the terms of the respective leases. Evaluation of Long-Lived Assets. The recoverability of long-lived assets and finite-lived intangible assets is assessed whenever adverse events or changes in circumstances indicate that recorded values may not be recoverable. A long-lived asset is considered to not be recoverable when the undiscounted estimated future cash flows are less than the asset’s recorded value. An impairment charge is measured based on estimated fair market value, determined primarily using estimated future cash flows on a discounted basis. Losses on long-lived assets to be disposed of are determined in a similar manner, but the fair market value would be reduced for estimated costs to dispose. Goodwill and Other Intangible Assets. Goodwill is the excess of purchase price over the fair value of identified net assets of businesses acquired. The Company’s intangible assets with an indefinite life are principally from trade names and trademarks, and FCC licenses. Amortized intangible assets are primarily student and customer relationships and trade names and trademarks, with amortization periods up to 10 years. Costs associated with renewing or extending intangible assets are insignificant and expensed as incurred. The Company reviews goodwill and indefinite-lived intangible assets at least annually, as of November 30, for possible impairment. Goodwill and indefinite-lived intangible assets are reviewed for possible impairment between annual tests if an event occurs or circumstances change that would more likely than not reduce the fair value of the reporting unit or indefinite-lived intangible asset below its carrying value. The Company tests its goodwill at the reporting unit level, which is an operating segment or one level below an operating segment. The Company initially assesses qualitative factors to determine if it is necessary to perform the goodwill or indefinite-lived intangible asset quantitative impairment review. The Company reviews the goodwill and indefinite-lived assets for impairment using the quantitative process if, based on its assessment of the qualitative factors, it determines that it is more likely than not that the fair value of a reporting unit or indefinite-lived intangible asset is less than its carrying value, or if it decides to bypass the qualitative assessment. The Company reviews the carrying value of goodwill and indefinite-lived intangible assets utilizing a discounted cash flow model, and, where appropriate, a market value approach is also utilized to supplement the discounted cash flow model. The Company makes assumptions regarding estimated future cash flows, discount rates, long-term growth rates and market values to determine the estimated fair value of each reporting unit and indefinite-lived intangible asset. If these estimates or related assumptions change in the future, the Company may be required to record impairment charges. Investments in Affiliates. The Company uses the equity method of accounting for its investments in and earnings or losses of affiliates that it does not control, but over which it exerts significant influence. The Company considers whether the fair values of any of its equity method investments have declined below their carrying values whenever adverse events or changes in circumstances indicate that recorded values may not be recoverable. If the Company considered any such decline to be other than temporary (based on various factors, including historical financial results, product development activities and the overall health of the affiliate’s industry), a write-down would be recorded to estimated fair value. Cost Method Investments. The Company uses the cost method of accounting for its minority investments in nonpublic companies where it does not have significant influence over the operations and management of the investee. Investments are recorded at the lower of cost or fair value as estimated by management. Charges recorded to write down cost method investments to their estimated fair value and gross realized gains or losses upon the sale of cost method investments are included in other income (expense), net, in the Company’s Consolidated Statements of Operations. Fair value estimates are based on a review of the investees’ product development activities, historical financial results and projected discounted cash flows. The Company includes cost method investments in deferred charges and other assets in the Company’s Consolidated Balance Sheets. Revenue Recognition. Revenue is recognized when persuasive evidence of an arrangement exists, the fees are fixed or determinable, the product or service has been delivered and collectability is reasonably assured. The Company considers the terms of each arrangement to determine the appropriate accounting treatment. Education revenues. Tuition revenue is recognized ratably over the period of instruction as services are delivered to students, net of any refunds, corporate discounts, scholarships and employee tuition discounts. At KTP, Professional (U.S.), and International divisions, estimates of average student course length are developed for each course, and these estimates are evaluated on an ongoing basis and adjusted as necessary. Online access revenue is recognized ratably over the period of access. Course material revenue is recognized over the same period as the tuition or online access, if related, or when the products are delivered, if not related. Other revenues, such as student support services, are recognized when the services are provided. KHE, through the Kaplan Commitment program, provides first-time undergraduate students with a risk-free trial period. Under the program, KHE monitors academic progress and conducts assessments to help determine whether students are likely to be successful in their chosen course of study. Students who withdraw or are subject to dismissal during the risk-free trial period do not incur any significant financial obligation. The Company does not recognize revenues related to coursework until the students complete the risk-free period and decide to continue with their studies, at which time the fees become fixed or determinable. KHE’s refund policy may permit students who do not complete a course to be eligible for a refund for the portion of the course they did not attend. The amount of the refund differs by school, program and state, as some states require different policies. Refunds generally result in a reduction in deferred revenue during the period that a student drops or withdraws from a class because the associated tuition revenue is recognized daily over the period of instruction as the services are delivered. Television broadcasting revenues. Advertising revenues are recognized, net of agency commissions, when the underlying advertisement is broadcast. Retransmission revenues are recognized over the term of the agreement based on monthly subscriber counts and contractual rates. Revenue presentation. The determination of whether revenue should be reported on a gross or net basis is based on an assessment of whether the Company acts as a principal or an agent in the transaction. In certain cases, the Company is considered the agent, and the Company records revenue equal to the net amount retained when the fee is earned. In these cases, costs incurred with third-party suppliers are excluded from the Company’s revenue. The Company assesses whether it or the third-party supplier is the primary obligor and evaluates the terms of its customer arrangements as part of this assessment. In addition, the Company considers other key indicators such as latitude in establishing price, inventory risk, nature of services performed, discretion in supplier selection and credit risk. SocialCode LLC (SocialCode), a wholly owned subsidiary, is a marketing and insights company that manages digital advertising for leading brands on digital media platforms like Facebook, Twitter, Instagram, Snapchat, Pinterest and YouTube. Donald E. Graham, the Chairman of the Company’s Board, was a member of the Board of Directors of Facebook, Inc. through June 10, 2015. SocialCode’s revenues are reported on a net basis; therefore, the Company’s Statements of Operations exclude the media acquisition costs incurred related to the relevant advertising platforms. Deferred revenue. Amounts received from customers in advance of revenue recognition are deferred as liabilities. Deferred revenue to be earned after one year is included in other noncurrent liabilities in the Company’s Consolidated Balance Sheets. Leases. The Company leases substantially all of its educational facilities and enters into various other lease agreements in conducting its business. At the inception of each lease, the Company evaluates the lease agreement to determine whether the lease is an operating or capital lease. Additionally, many of the Company’s lease agreements contain renewal options, tenant improvement allowances, rent holidays and/or rent escalation clauses. When such items are included in a lease agreement, the Company records a deferred rent asset or liability in the Consolidated Financial Statements and records these items in rent expense evenly over the terms of the lease. The Company is also required to make additional payments under operating lease terms for taxes, insurance and other operating expenses incurred during the operating lease period; such items are expensed as incurred. Rental deposits are included as other assets in the Company’s Consolidated Balance Sheets for lease agreements that require payments in advance or deposits held for security that are refundable, less any damages, at the end of the respective lease. Pensions and Other Postretirement Benefits. The Company maintains various pension and incentive savings plans. Most of the Company’s employees are covered by these plans. The Company also provides healthcare and life insurance benefits to certain retired employees. These employees become eligible for benefits after meeting age and service requirements. The Company recognizes the overfunded or underfunded status of a defined benefit postretirement plan as an asset or liability in its Consolidated Balance Sheets and recognizes changes in that funded status in the year in which the changes occur through comprehensive income. The Company measures changes in the funded status of its plans using the projected unit credit method and several actuarial assumptions, the most significant of which are the discount rate, the expected return on plan assets and rate of compensation increase. The Company uses a measurement date of December 31 for its pension and other postretirement benefit plans. Self-Insurance. The Company uses a combination of insurance and self-insurance for a number of risks, including claims related to employee healthcare and dental care, disability benefits, workers’ compensation, general liability, property damage and business interruption. Liabilities associated with these plans are estimated based on, among other things, the Company’s historical claims experience, severity factors and other actuarial assumptions. The expected loss accruals are based on estimates, and, while the Company believes that the amounts accrued are adequate, the ultimate loss may differ from the amounts provided. Income Taxes. The Company accounts for income taxes under the asset and liability method, which requires the recognition of deferred tax assets and liabilities for the expected future tax consequences of events that have been included in the financial statements. Under this method, deferred tax assets and liabilities are determined based on the differences between the financial statements and tax basis of assets and liabilities using enacted tax rates in effect for the year in which the differences are expected to reverse. The effect of a change in tax rates on deferred tax assets and liabilities is recognized in income in the period that includes the enactment date. The Company records net deferred tax assets to the extent that it believes these assets will more likely than not be realized. In making such determination, the Company considers all available positive and negative evidence, including future reversals of existing taxable temporary differences, projected future taxable income, tax planning strategies and recent financial operations; this evaluation is made on an ongoing basis. In the event the Company were to determine that it was able to realize net deferred income tax assets in the future in excess of their net recorded amount, the Company would record an adjustment to the valuation allowance, which would reduce the provision for income taxes. The Company recognizes a tax benefit from an uncertain tax position when it is more likely than not that the position will be sustained upon examination, including resolutions of any related appeals or litigation processes, based on the technical merits. The Company records a liability for the difference between the benefit recognized and measured for financial statement purposes and the tax position taken or expected to be taken on the Company’s tax return. Changes in the estimate are recorded in the period in which such determination is made. Foreign Currency Translation. Income and expense accounts of the Company’s non-United States operations where the local currency is the functional currency are translated into United States (U.S.) dollars using the current rate method, whereby operating results are converted at the average rate of exchange for the period, and assets and liabilities are converted at the closing rates on the period end date. Gains and losses on translation of these accounts are accumulated and reported as a separate component of equity and other comprehensive income. Gains and losses on foreign currency transactions, including foreign currency denominated intercompany loans on entities with a functional currency in U.S. dollars, are recognized in the Consolidated Statements of Operations. Equity-Based Compensation. The Company measures compensation expense for awards settled in shares based on the grant date fair value of the award. The Company measures compensation expense for awards settled in cash, or that may be settled in cash, based on the fair value at each reporting date. The Company recognizes the expense over the requisite service period, which is generally the vesting period of the award. Earnings Per Share. Basic earnings per share is calculated under the two-class method. The Company treats restricted stock as a participating security due to its nonforfeitable right to dividends. Under the two-class method, the Company allocates to the participating securities their portion of dividends declared and undistributed earnings to the extent the participating securities may share in the earnings as if all earnings for the period had been distributed. Basic earnings per share is calculated by dividing the income available to common stockholders by the weighted average number of common shares outstanding during the period. Diluted earnings per share is calculated similarly except that the weighted average number of common shares outstanding during the period includes the dilutive effect of the assumed exercise of options and restricted stock issuable under the Company’s stock plans. The dilutive effect of potentially dilutive securities is reflected in diluted earnings per share by application of the treasury stock method. Mandatorily Redeemable Noncontrolling Interest. The Company’s mandatorily redeemable noncontrolling interest represents the noncontrolling interest in Graham Healthcare Group (GHG) which is 90% owned. The minority shareholders have an option to put their shares to the Company starting in 2020 and are required to put a percentage of their shares in 2022 and 2024, with the remaining shares required to be put by the minority shareholders in 2026. Since the noncontrolling interest is mandatorily redeemable by 2026, it is reported as a noncurrent liability at December 31, 2017, in the Consolidated Balance Sheets. The Company presents this liability at fair value, which is computed annually as the current redemption value. Changes in the redemption value are recorded as interest expense or income in the Company’s Consolidated Statements of Operations. Redeemable Noncontrolling Interest. The Company’s redeemable noncontrolling interest represents the noncontrolling interest in Hoover, which is 97.72% owned. The minority shareholders have an option to put some of their shares to the Company starting in 2019 and the remaining shares starting in 2021. The Company has an option to buy the shares of minority shareholders starting in 2027. The Company presents the redeemable noncontrolling interest at the greater of its carrying amount or redemption value at the end of each reporting period in the Consolidated Balance Sheets. Changes in the redemption value are recorded to capital in excess of par value in the Company’s Consolidated Balance Sheets. Comprehensive Income. Comprehensive income consists of net income, foreign currency translation adjustments, the change in unrealized gains (losses) on investments in marketable equity securities, net changes in cash flow hedge and pension and other postretirement plan adjustments. Discontinued Operations. A disposal of a component is reported as discontinued operations if the disposal represents a strategic shift that has or will have a major effect on the Company’s operations and financial results. The results of discontinued operations (as well as the gain or loss on the disposal) are aggregated and separately presented in the Company’s Consolidated Statements of Operations, net of income taxes. 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, full retrospective, requiring retrospective application of the new guidance with a restatement of prior years, or modified retrospective, requiring prospective application of the new guidance with disclosure of results under the old guidance in the first year of adoption. The Company will adopt the new guidance on January 1, 2018 using the modified retrospective approach, which requires a cumulative adjustment to retained earnings. Upon adoption of the new guidance, the Company will record a net increase to the opening balance of retained earnings of approximately $7 million to $12 million. This adjustment primarily results from a change to the Company’s current treatment of certain commissions paid to employees and agents at its education division. The Company currently expenses such commissions as incurred. Under the new guidance, the Company expects to capitalize certain commission costs as an incremental cost of obtaining a contract and subsequently amortize the cost as the tuition services are delivered to students. The Company has substantially completed its evaluation of the impact of adopting the new guidance, as well as its assessment of the need for any changes to the Company’s accounting policies and internal control structure. As a result, the Company will implement new processes and internal controls to enable the preparation of financial information on adoption. The Company is finalizing its evaluation of new disclosures required by the guidance to determine additional information that will need to be disclosed including the nature and timing of the Company’s performance obligations, deferred revenue contract liabilities, deferred contract cost assets, as well as significant judgments and practical expedients used by the Company in applying the new guidance. 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. Upon adoption in the first quarter of 2018, the Company will record a cumulative adjustment of $194.9 million to retained earnings on its Consolidated Balance Sheet related to unrealized gains of available-for-sale securities, net of tax, previously classified within accumulated other comprehensive income, and will recognize any changes in fair value in net income. In addition, the Company expects to elect the measurement alternative to measure cost method investments that do not have a readily determinable fair value at cost less impairment, adjusted by observable price changes with any fair value changes recognized in net income. 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 Consolidated Financial Statements; however, the recognition of right-of-use assets and lease liabilities is expected to have a material effect on its Consolidated Balance Sheet. 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. The Company adopted the new guidance as of January 1, 2017. As a result of adoption, the Company recognized a $5.9 million excess tax benefit as a discrete item in its tax provision related to the vesting of restricted stock awards in the first quarter of 2017. This tax benefit is classified as an operating activity on the Consolidated Statement of Cash Flows. Additionally, the Company elected to account for forfeitures of stock awards as they occur and not estimate a forfeiture rate. The Company does not expect the forfeiture rate election to have a material impact on its financial statements. In January 2017, the FASB issued new guidance which simplifies the subsequent measurement of goodwill. The new guidance eliminates Step 2 from the goodwill impairment test, which required entities to determine the implied fair value of goodwill as of the test date to measure a goodwill impairment charge. Instead, an entity should continue to test goodwill for impairment by comparing the fair value of a reporting unit with its carrying amount (Step 1), and an impairment charge will be recognized for the amount by which the carrying amount exceeds the reporting unit’s fair value. The guidance is effective for interim and fiscal years beginning after December 15, 2019, with early adoption permitted. The Company early adopted this guidance in the second quarter of 2017. In March 2017, the FASB issued new guidance that changes the presentation of net periodic pension cost and net periodic postretirement benefit cost for defined benefit plans. The guidance requires an issuer to disaggregate the service cost component of net periodic pension and postretirement benefit cost from other components. Under the new guidance, service cost will be included in the same line item(s) as other compensation costs arising from services rendered by employees during the period, while the other components will be recognized after income from operations. The guidance is effective for interim and fiscal years beginning after December 15, 2017. The guidance must be applied retrospectively; however, a practical expedient is available which permits an employer to use amounts previously disclosed in its pension and postretirement plans footnote for the prior comparative periods. The Company adopted the new standard in the first quarter of 2018. In combination with the presentation change to net periodic pension cost and net periodic postretirement benefit cost, the Company allocated its costs associated with fringe benefits between operating expenses and selling, general and administrative expenses. Previously, costs related to fringe benefits were generally classified as selling, general and administrative expenses. The amounts in the previously issued financial statements have been reclassified to conform to the reclassified presentation. The effect of these changes to the Consolidated Statement of Operations for 2017, 2016 and 2015 is as follows:
In February 2018, the FASB issued new guidance that allows an entity to elect to reclassify stranded tax effects resulting from the Tax Cuts and Jobs Act (the Tax Act) from accumulated other comprehensive income to retained earnings. If elected, the amount of the reclassification shall include the effect of the change in the U.S. federal corporate income tax rate on the gross deferred tax amount and related valuation allowances at the date of enactment of the Tax Act as well as other income tax effects of the Tax Act on items remaining in accumulated other comprehensive income. The guidance is effective for interim and fiscal years beginning after December 15, 2018, with early adoption permitted. The Company early adopted this guidance in the fourth quarter of 2017, and elected to reclassify the income tax effects of the Tax Act of $70.9 million from accumulated other comprehensive income to retained earnings. No other income tax effects related to the application of the Tax Act were reclassified. Other new pronouncements issued but not effective until after December 31, 2017, are not expected to have a material impact on the Company’s Consolidated Financial Statements. |
Acquisitions and Dispositions of Businesses |
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Acquisitions and Dispositions of Businesses | ACQUISITIONS AND DISPOSITIONS OF BUSINESSES Acquisitions. During 2017, the Company acquired six businesses, two in its education division, two in its television broadcasting division and two in other businesses for $318.9 million in cash and contingent consideration, and the assumption of $59.1 million in certain pension and postretirement obligations. The assets and liabilities of the companies acquired have been recorded at their estimated fair values at the date of acquisition. On January 17, 2017, the Company closed on its agreement with Nexstar Broadcasting Group, Inc. and Media General, Inc. to acquire the assets of WCWJ, a CW affiliate television station in Jacksonville, FL, and WSLS, an NBC affiliate television station in Roanoke, VA, for cash and the assumption of certain pension obligations. The acquisition of WCWJ and WSLS will complement the other stations that GMG operates. Both of these acquisitions are included in television broadcasting. In February 2017, Kaplan acquired a 100% interest in Genesis Training Institute, a Dubai-based provider of professional development training in the United Arab Emirates, by purchasing all of its issued and outstanding shares. Additionally, Kaplan acquired a 100% interest in Red Marker Pty Ltd., an Australia-based regulatory technology company by purchasing all of its outstanding shares. These acquisitions are expected to provide certain strategic benefits in the future. Both of these acquisitions are included in Kaplan International. In April 2017, the Company acquired 97.72% of the issued and outstanding shares of Hoover Treated Wood Products, Inc., a Thomson, GA-based supplier of pressure impregnated kiln-dried lumber and plywood products for fire retardant and preservative applications for $206.8 million, net of cash acquired. The fair value of the redeemable noncontrolling interest in Hoover was $3.7 million at the acquisition date, determined using a market approach. The minority shareholders have an option to put some of their shares to the Company starting in 2019 and the remaining shares starting in 2021. The Company has an option to buy the shares of minority shareholders starting in 2027. This acquisition is consistent with the Company’s ongoing strategy of investing in companies with a history of profitability and strong management. Hoover is included in other businesses. At the end of June 2017, Graham Healthcare Group (GHG) acquired a 100% interest in Hometown Home Health and Hospice, a Lapeer, MI-based healthcare services provider by purchasing all of its issued and outstanding shares. This acquisition expands GHG’s service area in Michigan. GHG is included in healthcare. During 2016, the Company acquired five businesses, three businesses included in its education division and two businesses in other businesses for $258.0 million. The assets and liabilities of the companies acquired were recorded at their estimated fair values at the date of acquisition. In January 2016, Kaplan acquired a 100% interest in Mander Portman Woodward, a leading provider of high-quality, bespoke education to United Kingdom (U.K.) and international students in London, Cambridge and Birmingham, by purchasing all of its issued and outstanding shares. In February 2016, Kaplan acquired a 100% interest in Osborne Books, an educational publisher of learning resources for accounting qualifications in the U.K., by purchasing all of its issued and outstanding shares. The primary reason for these acquisitions was based on several strategic benefits expected to be realized in the future. Both of these acquisitions are included in Kaplan International. In September 2016, Group Dekko, Inc. (Dekko) acquired a 100% interest in Electri-Cable Assemblies (ECA), a Shelton, CT-based manufacturer of power, data and electrical solutions for the office furniture industry, by purchasing all of its issued and outstanding shares. Dekko’s primary reasons for the acquisition were to complement existing product offerings and provide opportunities for synergies across the businesses. This acquisition is included in other businesses. During 2015, the Company acquired two businesses for $163.3 million. The assets and liabilities of the companies acquired have been recorded at their estimated fair values at the date of acquisition. On November 13, 2015, the Company acquired a 100% interest in 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, by purchasing all of the issued and outstanding shares. Dekko 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 Professional (U.S.). Acquisition-related costs for acquisitions that closed during 2017 and 2016 were $4.1 million and $1.5 million, respectively, and expensed as incurred. Acquisition-related costs were not significant for 2015 and were expensed as incurred. The aggregate purchase price of these acquisitions was allocated as follows, based on acquisition date fair values to the following assets and liabilities (excluding measurement period adjustments recorded in subsequent years):
The fair values recorded were based upon valuations. Goodwill is calculated as the excess of the consideration transferred over the net assets recognized and represents the estimated future economic benefits arising from other assets acquired that could not be individually identified and separately recognized. The goodwill recorded due to these acquisitions is attributable to the assembled workforces of the acquired companies and expected synergies. The Company expects to deduct $11.0 million, $22.2 million and $20.0 million of goodwill for income tax purposes for the acquisitions completed in 2017, 2016 and 2015, respectively. In 2016, the Company recorded adjustments to the deferred taxes included in the preliminary purchase accounting of Dekko and SmartPros acquired in the fourth quarter of 2015. These adjustments resulted in a $20.0 million decrease to goodwill. The acquired companies were consolidated into the Company’s financial statements starting on their respective acquisition dates. The Company’s Consolidated Statements of Operations include aggregate revenues and operating income for the companies acquired in 2017 of $199.4 million and $4.5 million, respectively. The following unaudited pro forma financial information presents the Company’s results as if the current year acquisitions had occurred at the beginning of 2016. The unaudited pro forma information also includes the 2016 acquisitions as if they occurred at the beginning of 2015 and the 2015 acquisitions as if they had occurred at the beginning of 2014:
These pro forma results were based on estimates and assumptions, which the Company believes are reasonable, and include the historical results of operations of the acquired companies and adjustments for depreciation and amortization of identified assets and the effect of pre-acquisition transaction related expenses incurred by the Company and the acquired entities. The pro forma information does not include efficiencies, cost reductions and synergies expected to result from the acquisitions. 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. 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 4). Sale of Businesses. In the fourth quarter of 2017, Kaplan Australia completed the sale of a small business, which was included in Kaplan International. In February 2017, GHG completed the sale of Celtic Healthcare of Maryland. 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 a vocational school company. KHE Campuses schools that were closed or were in the process of closing were not included in the sale transaction. The revenue and operating losses related to schools that were sold as part of the KHE Campuses sale are as follows:
In the second quarter of 2015, Kaplan also recorded a $6.9 million long-lived assets impairment charge in connection with the KHE Campuses business (this amount is included in the above table). 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 Professional (U.S.). As a result of these sales, the Company reported net losses in other non-operating income (expense) (see Note 16). Other. In June 2016, Residential Healthcare (Residential) and a Michigan hospital formed a joint venture to provide home health services to patients in western Michigan. In connection with this transaction, Residential contributed its western Michigan home health operations to the joint venture and then sold 60% of the newly formed venture to its Michigan hospital partner. Although Residential manages the operations of the joint venture, Residential 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. In June 2016, the Company purchased the outstanding 20% redeemable noncontrolling interest in Residential. At that time, the Company recorded an increase to redeemable noncontrolling interest of $3.0 million, with a corresponding decrease to capital in excess of par value, to reflect the redemption value of the redeemable noncontrolling interest at $24.0 million. Following this transaction, Celtic Healthcare (Celtic) and Residential combined their business operations to form GHG. The redeemable noncontrolling interest shareholders in Celtic exchanged their 20% interest in Celtic for a 10% mandatorily redeemable noncontrolling interest in the combined entity, and the Company recorded a $4.1 million net increase to the mandatorily redeemable noncontrolling interest to reflect the estimated fair value of the mandatorily redeemable noncontrolling interest. The minority shareholders have an option to put their shares to the Company starting in 2020 and are required to put a percentage of their shares in 2022 and 2024, with the remaining shares required to be put by the minority shareholders in 2026. The redemption value is based on an EBITDA multiple, adjusted for working capital and other items, computed annually, with no limit on the amount payable. The Company now owns 90% of GHG. Because the noncontrolling interest is now mandatorily redeemable by the Company by 2026, it is reported as a noncurrent liability at December 31, 2017. In January 2015, Celtic and Allegheny Health Network 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. The Company’s income from continuing operations excludes Cable ONE and the sold Kaplan China school, which have been reclassified to discontinued operations (see Note 4). Kaplan University Transaction. On April 27, 2017, certain Kaplan subsidiaries entered into a Contribution and Transfer Agreement (Transfer Agreement) to contribute Kaplan University (KU), its institutional assets and operations to a new, non-profit, public-benefit corporation affiliated with Purdue University (Purdue) in exchange for a Transition and Operations Support Agreement (TOSA) to provide key non-academic operations support to the new university for an initial term of 30 years with a buy-out option after six years. The transfer does not include any of the assets of Kaplan University School of Professional and Continuing Education (KU-PACE), which provides professional training and exam preparation for professional certifications and licensures, nor does it include the transfer of other Kaplan businesses, such as Kaplan Test Preparation and Kaplan International. Consummation of the transactions contemplated by the Transfer Agreement is subject to various closing conditions, including, among others, regulatory approvals from the U.S. Department of Education (ED), the Indiana Commission for Higher Education (ICHE) and the Higher Learning Commission (HLC), which is the regional accreditor of both Purdue and KU, and certain other state educational agencies and accreditors of programs. In the third quarter of 2017, ICHE granted its approval, and the ED provided preliminary approval based on its review of a pre-acquisition application, subject to certain conditions. Kaplan is unable to predict with certainty when and if HLC approval will be obtained; however, a decision is not expected to be received until later in the first quarter of 2018. If the transaction is not consummated by April 30, 2018, either party may terminate the Transfer Agreement. Other Transactions. In the fourth quarter of 2017, Kaplan entered into an agreement to acquire the College for Financial Planning. The acquisition is subject to regulatory approval from the HLC, which is not expected before June 2018. Subsequent Events (Unaudited). On March 22, 2018, Kaplan completed the contribution of the institutional assets and operations of KU to Purdue University Global, an Indiana non-profit, public benefit corporation that is a subsidiary affiliated with Purdue University (Purdue). At the same time, the parties entered into a Transition and Operations Support Agreement (TOSA) pursuant to which Kaplan will provide key non-academic operations support to the new university. Purdue University Global will operate almost exclusively online as a new Indiana public university affiliated with Purdue. As part of the transfer to Purdue University Global, KU transferred students, academic personnel, faculty and operations, property leases for KU’s campuses and learning centers, Kaplan-owned academic curricula and content related to KU courses. The operations support activities that Kaplan will provide to Purdue University Global will include technology support, help-desk functions, human resources support for transferred faculty and employees, admissions support, financial aid administration, marketing and advertising, back-office business functions, certain test preparation and domestic and international student recruiting services. The transfer of KU does not include any of the assets of the KU School of Professional and Continuing Education, which provides professional training and exam preparation for professional certifications and licensures, nor does it include the transfer of other Kaplan businesses such as Kaplan Test Preparation and Kaplan International. Those entities, programs and business lines will remain part of Kaplan. Kaplan received nominal cash consideration upon transfer of the institutional assets. On May 4, 2018, Kaplan acquired Professional Publications, Inc., an independent publisher of professional licensing exam review materials and recognized leader in engineering, surveying, architecture, and interior design licensure exam review. |
Discontinued Operations |
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Discontinued Operation, Additional Disclosures [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 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-off, 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 Consolidated Statements of Operations as income from discontinued operations, net of tax, for all periods presented. In order to implement the spin-off, the Company entered into certain agreements with Cable ONE to give effect to the legal and structural separation and to allocate various assets, liabilities and obligations between the Company and Cable ONE. In addition to executing the spin-off in the manner provided in the agreements, Cable ONE distributed $450 million in cash to the Company in June 2015 using the proceeds from their issuance of unsecured notes of $450 million. Also, in connection with the spin-off, the Company modified the terms of 10,830 restricted stock awards in the second quarter of 2015 affecting 21 Cable ONE employees. The modification resulted in the acceleration of the vesting period of 6,324 restricted stock awards and the forfeiture of 4,506 restricted stock awards. The Company recorded incremental stock compensation expense, net of forfeitures, in the second quarter of 2015 amounting to $3.7 million, which is reflected as discontinued operations in the Company’s Consolidated Financial Statements. The spin-off resulted in a modification of some of the Company’s outstanding restricted stock awards and stock options due to the equity restructuring on July 1, 2015. The holders of restricted stock awards received Cable ONE restricted common stock, on a pro rata basis, as part of the distribution, while the stock options were modified to add an antidilution provision. The modification of the restricted stock awards resulted in an estimated incremental stock compensation expense of $3.0 million that is being recognized over the remaining service periods of the unvested restricted stock awards through the end of 2018. The modification of some of the stock options resulted in an incremental stock compensation expense of $23.5 million, of which $18.8 million related to fully vested stock options was recognized as a one-time expense in the third quarter of 2015, with the remaining $4.7 million to be recognized over the remaining service periods of the unvested stock options through the end of 2018. The $18.8 million expense is included in the Company’s corporate office segment results and in selling, general and administrative in the Company’s Consolidated Statements of Operations. As a result of the spin-off, Cable ONE assumed the liability related to their employees participating in the Company’s Supplemental Executive Retirement Plan (SERP), and the Company eliminated the accrual of pension benefits for all Cable ONE employees related to their future service. As a result, the Company remeasured the accumulated and projected benefit obligation of the pension and SERP as of July 1, 2015. A pension curtailment gain of $2.2 million was recorded in the third quarter of 2015 in income from discontinued operations, net of tax. On July 1, 2015, the Company divested the following assets and liabilities which net to $406.5 million, or $312.3 million net of cash retained by Cable ONE on the Distribution Date:
Cash flows from Cable ONE for the year ended December 31, 2015 are combined with the cash flows from operations within each of the categories presented. Net Cash Provided by Operating Activities was $109.8 million and Net Cash Used in Investing Activities was $74.4 million. Spin-Off Costs: One-time spin-off transaction, financing and related costs of $7.4 million in 2015 are included in discontinued operations, net of tax. 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 2015 that resulted in a pre-tax loss of $0.7 million. The results of operations of Cable ONE and the school in China for 2015, where applicable, are included in the Company’s Consolidated Statements of Operations as income from discontinued operations, net of tax. The Company did not reclassify its Consolidated Statements of Cash Flows to reflect the discontinued operations. The summarized income from discontinued operations, net of tax, is presented below:
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Investments |
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Investments [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Investments | INVESTMENTS Commercial Paper and Money Market Investments. As of December 31, 2017 and 2016, the Company had commercial paper and money market investments of $217.6 million and $485.1 million, respectively, that are classified as cash, cash equivalents and restricted cash in the Company’s Consolidated Balance Sheets. Investments in Marketable Equity Securities. Investments in marketable equity securities consist of the following:
At December 31, 2017 and 2016, the Company owned 28,000 shares in Markel Corporation (Markel) valued at $31.9 million and $25.3 million, respectively. The Co-Chief Executive Officer of Markel, Mr. Thomas S. Gayner, is a member of the Company’s Board of Directors. There were no purchases or sales of marketable equity securities during 2017. The Company settled on $48.3 million of marketable equity securities during 2016, of which $47.9 million was purchased during the year. The Company invested $146.2 million in marketable equity securities during 2015. During 2016, proceeds from sales of marketable equity securities were $29.7 million, resulting in gross realized losses of $8.1 million and gross realized gains of $6.2 million. Investments in Affiliates. During 2017, the Company acquired approximately 11% of Intersection Holdings, LLC, a company that provides digital marketing and advertising services and products for cities, transit systems, airports, and other public and private spaces, which is accounted for as an investment in affiliate. As of December 31, 2017, the Company held interests in several affiliates; GHG held a 40% interest in Residential Home Health Illinois, a 42.5% interest in Residential Hospice Illinois, a 40% interest in the joint venture formed between GHG and a Michigan hospital, and a 40% interest in the joint venture formed between GHG and Allegheny Health Network (AHN) (see Note 3). For the year ended December 31, 2017 and 2016, the Company recorded $18.3 million and $14.9 million, respectively, in revenue for services provided to the affiliates of GHG. Additionally, Kaplan International Holdings Limited (KIHL) held a 45% interest in a joint venture formed with York University. In July 2016, Kaplan International Holdings Limited (KIHL) entered into an agreement with University of York International Pathway College LLP (York International College) to loan the LLP £25 million over the next eighteen months, to construct an academic building in the U.K. to be used by the College. York International College is a limited liability partnership joint venture between Kaplan York Limited (a subsidiary of Kaplan International Colleges U.K. Limited) and a subsidiary of the University of York, that operates a pathways college. The loan will be repayable over 25 years at an interest rate of 7% and the loan is guaranteed by the University of York. While there is no strict requirement to make annual principal and interest payments, interest will be rolled up and accrue interest at 7% if no such payments are made. The loan becomes due and payable if the partnership agreement with Kaplan is terminated. In the second half of 2016, KIHL advanced approximately £11.0 million to York International College. In 2017, an additional £5.0 million was advanced to York International College. As a result of operating losses, in the fourth quarter of 2017, the Company recorded a $2.8 million write-down on its investment in an affiliate. As a result of the challenging industry operating environment and operating losses, in the fourth quarter of 2016, the Company recorded an $8.4 million write-down on its investment in HomeHero, a company that managed an online senior home care marketplace. |
Accounts Receivable, Accounts Payable and Accrued Liabilities |
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Accounts Receivable Accounts Payable And Accrued Liabilities [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Accounts Receivable Accounts Payable And Accrued Liabilities | ACCOUNTS RECEIVABLE, ACCOUNTS PAYABLE AND ACCRUED LIABILITIES Accounts receivable consist of the following:
The changes in allowance for doubtful accounts was as follows:
Accounts payable and accrued liabilities consist of the following:
Cash overdrafts of $6.0 million and $15.5 million are included in accounts payable and accrued liabilities at December 31, 2017 and 2016, respectively. |
Inventories and Contracts in Progress |
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Inventory Disclosure [Text Block] | INVENTORIES AND CONTRACTS IN PROGRESS Inventories and contracts in progress consist of the following:
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Property, Plant and Equipment |
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Property, Plant and Equipment | PROPERTY, PLANT AND EQUIPMENT Property, plant and equipment consist of the following:
Depreciation expense was $62.5 million, $64.6 million and $77.9 million in 2017, 2016 and 2015, respectively. The Company capitalized $0.3 million and $0.4 million of interest related to the construction of a building in 2017 and 2016, respectively. No interest expense was capitalized in 2015. In the second quarter of 2017, as a result of a challenging operating environment, Forney recorded a $0.6 million impairment charge. In the third quarter of 2017, GHG recorded an impairment charge of $0.4 million. The Company estimated the fair value of the property, plant and equipment using a market approach. Forney and GHG are included in other businesses. In the second quarter of 2015, as a result of the sale of Kaplan’s KHE Campuses business, Kaplan recorded a $6.9 million impairment charge. The Company estimated the fair value of the property, plant and equipment using a market approach. |
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 The Company reorganized its operations in the first quarter of 2018 into the following six operating segments for the purpose of making operating decisions and assessing performance: Higher Education, Professional (U.S.), Test Preparation, Kaplan International, Television Broadcasting and Healthcare (see Note 20). The reorganization changed the composition of the reporting units within the education division, and resulted in the reassignment of the assets and liabilities to the reporting units affected. The goodwill was allocated to the affected reporting units using the relative fair value approach. As a result of the reassignment and allocation, the Company performed an interim review of the carrying value of goodwill at the education division for possible impairment on both a pre and post-reorganization basis. No impairment of goodwill was indicated at the pre- and post-reorganization reporting units. In the second quarter of 2017, as a result of a challenging operating environment, the Forney reporting unit recorded a goodwill and intangible asset impairment charge of $8.6 million. The Company performed an interim review of the goodwill and other long-lived assets of the reporting unit by utilizing a discounted cash flow model to estimate the fair value. The carrying value of the reporting unit exceeded the estimated fair value, resulting in a goodwill impairment charge for the amount by which the carrying value exceeded the reporting unit’s estimated fair value. Forney is included in other businesses. In the fourth quarter of 2016, as a result of the challenging industry operating environment and operating losses, one of the businesses in the other businesses segment recorded a goodwill impairment charge of $1.6 million. In the third quarter of 2015, as a result of continued declines in student enrollments at KHE and the challenging industry operating environment, the Company performed an interim impairment review of its goodwill and long-lived assets at the KHE reporting unit. The KHE reporting unit failed the step one goodwill impairment test. As a result of the step two analysis, the Company recorded a $248.6 million goodwill impairment charge. The Company estimated the fair value of the KHE reporting unit utilizing a discounted cash flow model, supported by a market approach. A substantial portion of the impairment charge is due to the amount of unrecognized intangible assets identified in the step two analysis. In addition, in the fourth quarter of 2015, Kaplan recorded intangible asset impairment charges of $0.9 million related to one of the Kaplan International businesses and $0.5 million related to a KTP business. The fair values of these intangible assets were estimated using an income approach. In November 2015, the Company announced that Trove, a digital innovation team included in other businesses, would largely be integrated into SocialCode and that Trove’s existing offerings would be discontinued. In connection with this action, the Company recorded a $2.8 million goodwill impairment charge in the fourth quarter of 2015. Amortization of intangible assets for the years ended December 31, 2017, 2016 and 2015, was $41.2 million, $26.7 million and $19.0 million, respectively. Amortization of intangible assets is estimated to be approximately $41 million in 2018, $39 million in 2019, $36 million in 2020, $31 million in 2021, $25 million in 2022 and $66 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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Income Taxes |
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Income Tax Disclosure [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Income Taxes | INCOME TAXES Income (loss) from continuing operations before income taxes consists of the following:
The (benefit from) provision for income taxes on income (loss) from continuing operations consists of the following:
The provision for income taxes on continuing operations differs from the amount of income tax determined by applying the U.S. Federal statutory rate of 35% to the income (loss) from continuing operations before taxes as a result of the following:
The Tax Act was enacted on December 22, 2017, making significant changes to the Internal Revenue Code. The SEC staff issued Staff Accounting Bulletin No. 118 (SAB 118) to address the application of U.S. GAAP in situations when a registrant does not have the necessary information available, prepared, or analyzed (including computations) in reasonable detail to complete the accounting for certain income tax effects of the Tax Act and allows the registrant to record provisional amounts during a measurement period not to extend beyond one year of the enactment date. The Company has not recognized any provisional tax expense related to the one-time transition tax, and recognized provisional tax benefits on the revaluation of deferred tax balances and included these estimates in its Consolidated Financial Statements for the year ended December 31, 2017. The ultimate impact may materially differ from these provisional amounts, due to, among other things, additional analysis, changes in interpretations and assumptions the Company made, additional regulatory guidance that may be issued, and actions the Company may take as a result of the Tax Act. In accordance with SAB 118, the Company has calculated a reasonable estimate of the impact of the Tax Act and recorded a provisional amount in its financial statements based on its understanding of the Tax Act and guidance available as of the date of this filing. Changes as a result of the Tax Act include, but are not limited to, a reduction in the federal corporate income tax rate from 35% to 21% effective January 1, 2018; the imposition of a one-time transition tax on historic earnings of certain non-U.S. subsidiaries that were previously tax deferred; and the imposition of new U.S. taxes on certain non-U.S. earnings. The U.S. Federal corporate income tax rate change resulted in a one-time, non-cash benefit and corresponding reduction of our U.S. Federal deferred tax liabilities, net of the state tax impact, of $153.3 million, which was recorded in the fourth quarter of 2017, the period in which the legislation was enacted. The Company estimates that it will not incur, and did not record, any liability with respect to the one-time U.S. transition tax imposed by the Tax Act on unremitted non-U.S. subsidiary earnings. The Company estimates that unremitted non-U.S. subsidiary earnings, when distributed, will not be subject to tax except to the extent non-U.S. withholding taxes are imposed. Accordingly, the Company recorded net deferred tax benefits and a corresponding reduction in deferred tax liabilities of $28.3 million in the fourth quarter of 2017 with respect to unremitted non-U.S. subsidiary earnings. Approximately $1.6 million of deferred tax liabilities remain recorded on the books with respect to future non-U.S. withholding taxes the Company estimates may be imposed on future cash distributions. The Company estimates that it will not receive a future U.S. tax benefit for $2.5 million of existing foreign tax credit carryovers as a result of the Tax Act changes; accordingly, the Company established a full valuation allowance of $2.5 million at December 31, 2017. In March 2016, the FASB issued new guidance that requires all excess tax benefits and tax deficiencies related to stock-based compensation to be recognized in the income statement. The Company adopted the new guidance as of January 1, 2017. As a result of the adoption, the Company recognized $6.0 million in excess tax benefits related to stock-based compensation in 2017. Excess tax benefits and tax deficiencies that occurred prior to January 1, 2017 were not recognized in the income statement, and were instead recorded to additional paid-in capital. During 2016, certain intercompany loans were capitalized and other intercompany loans were designated as long-term investments, resulting in the write-off of $11.0 million in U.S. deferred tax assets. Also, the Company benefited from a favorable $5.6 million out of period deferred tax adjustment related to the KHE goodwill impairment recorded in the third quarter of 2015. During 2015, in addition to the income tax provision for continuing operations presented above, the Company also recorded tax expense on discontinued operations. Income from discontinued operations and net (loss) gain on dispositions of discontinued operations have been reclassified from previously reported income from operations and reported separately as income from discontinued operations, net of tax. Tax expense of $27.8 million was recorded in discontinued operations in 2015. Deferred income taxes consist of the following:
The Company has $635.1 million of state income tax net operating loss carryforwards available to offset future state taxable income. State income tax loss carryforwards, if unutilized, will start to expire approximately as follows:
The Company has recorded at December 31, 2017, $35.3 million in deferred state income tax assets, net of U.S. Federal income tax, with respect to these state income tax loss carryforwards. The Company has established $33.3 million in valuation allowances against these deferred state income tax assets, since the Company has determined that it is more likely than not that the majority of state tax losses may not be fully utilized in the future to reduce state taxable income. The Company has $13.5 million of U.S. Federal income tax loss carryforwards obtained as a result of prior stock acquisitions. U.S. Federal income tax loss carryforwards are expected to be fully utilized as follows:
The Company has established at December 31, 2017, $2.9 million in U.S. Federal deferred tax assets with respect to these U.S. Federal income tax loss carryforwards. For U.S. Federal income tax purposes, the Company has $2.5 million of foreign tax credits available to be credited against future U.S. Federal income tax liabilities. If unutilized, $0.7 million of these foreign tax credits will expire in 2024, $0.7 million will expire in 2025, $0.7 million will expire in 2026, and $0.4 million will expire in 2027. The Company has established at December 31, 2017, $2.5 million of U.S. Federal deferred tax assets with respect to these U.S. Federal foreign tax credit carryforwards; however, due to changes to the rules relating to foreign tax credits under the Tax Act, a valuation allowance against these deferred tax assets was established during the fourth quarter of 2017 since the Company determined that it is more likely than not its foreign tax credit carryforwards may not be fully utilized in the future to reduce U.S. Federal income taxes. The Company has $68.4 million of non-U.S. income tax loss carryforwards, as a result of operating losses and carryforwards obtained through prior stock acquisitions that are available to offset future non-U.S. taxable income and has recorded, with respect to these losses, $18.8 million in non-U.S. deferred income tax assets. The Company has established $5.6 million in valuation allowances against the deferred tax assets recorded for the portion of non-U.S. tax losses that may not be fully utilized to reduce future non-U.S. taxable income. The $68.4 million of non-U.S. income tax loss carryforwards consist of $57.4 million in losses that may be carried forward indefinitely; $7.0 million of losses that, if unutilized, will expire in varying amounts through 2022; and $3.9 million of losses that, if unutilized, will start to expire after 2022. The Company has $7.8 million of non-U.S. capital loss carryforwards that may be carried forward indefinitely and are available to offset future non-U.S. capital gains. The Company recorded a $2.3 million non-U.S. deferred income tax asset for these non-U.S. capital loss carryforwards and has established a full valuation allowance against this non-U.S. deferred tax asset since the Company has determined that it is more likely than not that the capital loss carryforwards may not be fully utilized to reduce taxable income in the future. Deferred tax valuation allowances and changes in deferred tax valuation allowances were as follows:
The Company has established $38.0 million in valuation allowances against deferred state tax assets recognized, net of U.S. Federal tax. As stated above, approximately $33.3 million of the valuation allowances, net of U.S. Federal income tax, relate to state income tax loss carryforwards. The Company has established valuation allowances against deferred state income tax assets, without considering potentially offsetting deferred tax liabilities established with respect to prepaid pension cost and goodwill for the state jurisdictions that do not conform to the U.S. indefinite carryforward period for losses generated after December 31, 2017. Prepaid pension cost and goodwill have not been considered a source of future taxable income for realizing those state deferred tax assets recognized since these temporary differences are not likely to reverse in the foreseeable future. The valuation allowances established against deferred state income tax assets may increase or decrease within the next 12 months, based on operating results or the market value of investment holdings. The Company will be monitoring future results on a quarterly basis to determine whether the valuation allowances provided against deferred state tax assets should be increased or decreased, as future circumstances warrant. The Company anticipates that the education division may release valuation allowances against state deferred tax assets of approximately $22.7 million within the next 12 months, as the education division may generate positive operating results that would support the realization of these deferred tax assets. The Company has established $8.2 million in valuation allowances against non-U.S. deferred tax assets, and, as stated above, $5.6 million of the non-U.S. valuation allowances relate to non-U.S. income tax loss carryforwards and $2.3 million relate to non-U.S. capital loss carryforwards. In addition, the Company has established $0.3 million in valuation allowances against other non-U.S. deferred tax assets. Deferred U.S. Federal and state income taxes had historically been recorded with respect to undistributed earnings of investments in non-U.S. subsidiaries to the extent taxable dividend income would be recognized if such earnings were distributed. Deferred income taxes recorded with respect to undistributed earnings of investments in non-U.S. subsidiaries were recorded net of foreign tax credits with respect to such undistributed earnings estimated to be creditable against future U.S. Federal tax liabilities. At December 31, 2016, net U.S. Federal and state deferred income tax liabilities of approximately $23.8 million were recorded with respect to undistributed earnings of investments in non-U.S. subsidiaries based on the year-end position. As noted above, the Company removed its net U.S. federal and state deferred tax liabilities on undistributed earnings of investments in non-U.S. subsidiaries because the Company does not expect to pay any transition tax under the Tax Act. Further, the Tax Act provides a 100% dividends received deduction for distributions from non-U.S. subsidiaries after December 31, 2017, subject to certain holding period requirements. The Tax Act establishes a new regime, the Global Intangible Low Taxed Income (GILTI) tax, that may currently subject to U.S. tax the operations of non-U.S. subsidiaries. The GILTI tax is imposed annually based on all current year non-U.S. operations starting January 1, 2018. The Company has not yet decided whether to elect to record the GILTI tax regime as either a deferred tax accounting item or as a periodic tax expense, and is not yet able to quantify the 2017 tax provision impact, if any. Accordingly, the Company has not made any tax provision adjustment with respect to the new GILTI tax in the 2017 tax provision. The book value of investments in the stocks of non-U.S. subsidiaries exceeded the tax basis by approximately $113.2 million and $103.3 million at December 31, 2017 and 2016. If the investment in non-U.S. subsidiaries were held for sale instead of being held indefinitely, it is possible additional U.S. Federal and state tax liabilities may be recorded, but calculation of the tax due is not practicable. The Company does not currently anticipate that within the next 12 months there will be any events requiring the establishment of any valuation allowances against U.S. Federal net deferred tax assets. In the third quarter of 2016, the Company released $19.3 million of valuation allowance previously recorded on its operations in Australia, as the Company determined that it was more likely than not that the benefit of the net deferred tax assets would be realized based on improved operating results. The remaining valuation allowances established against non-U.S. deferred tax assets are recorded at the education division and other businesses. The remaining non-U.S. valuation allowances may increase or decrease within the next 12 months, based on operating results. As a result, the Company is unable to estimate the potential tax impact, given the uncertain operating environment. The Company will be monitoring future education division and other businesses’ operating results and projected future operating results on a quarterly basis to determine whether the valuation allowances provided against non-U.S. deferred tax assets should be increased or decreased, as future circumstances warrant. During 2017, the Internal Revenue Service (IRS) completed its examination of the Company’s 2013 tax return and the Company received a $9.7 million refund primarily related to capital loss carryforwards. The Company is no longer under examination by the IRS, and has not been contacted by the IRS about any further examinations. Barring the start of another IRS examination, the Company expects that the U.S. Federal statute of limitations for the 2013 and 2014 tax years will expire in July 2018 and September 2018, respectively. The Company files income tax returns with the U.S. Federal government and in various state, local and non-U.S. governmental jurisdictions, with the consolidated U.S. Federal tax return filing considered the only major tax jurisdiction. The Company endeavors to comply with tax laws and regulations where it does business, but cannot guarantee that, if challenged, the Company’s interpretation of all relevant tax laws and regulations will prevail and that all tax benefits recorded in the financial statements will ultimately be recognized in full. The following summarizes the Company’s unrecognized tax benefits, excluding interest and penalties, for the respective periods:
The unrecognized tax benefits mainly relate to state income tax filing positions applicable to the 2014 tax period. In making these determinations, the Company presumes that taxing authorities pursuing examinations of the Company’s compliance with tax law filing requirements will have full knowledge of all relevant information, and, if necessary, the Company will pursue resolution of disputed tax positions by appeals or litigation. Although the Company cannot predict the timing of resolution with tax authorities, the Company estimates that no portion of unrecognized tax benefits will be reduced in the next 12 months due to settlement with the tax authorities. However, due to lapse of statutes of limitations, the Company expects that approximately $15.7 million of the unrecognized tax benefits will be recognized, and the Company will record a $3.5 million state tax benefit, net of $0.7 million federal tax expense during 2018. Subsequently, the Company expects that a $1.7 million state tax benefit, net of $0.4 million federal tax expense, will reduce the effective tax rate in the future if recognized. The Company classifies interest and penalties related to uncertain tax positions as a component of interest and other expenses, respectively. As of December 31, 2017, the Company has accrued $1.1 million of interest related to the unrecognized tax benefits. The Company has not accrued any penalties related to the unrecognized tax benefits. |
Debt |
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Dec. 31, 2017 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Debt Disclosure [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Debt | DEBT The Company’s borrowings consist of the following:
The Company did not borrow funds under its USD revolving credit facility in 2017 or 2016. The Company’s other indebtedness at December 31, 2017, is at an interest rate of 2% and matures in 2026. The Company’s other indebtedness at December 31, 2016, is at interest rates of 2% to 6% and matures between 2019 and 2026. On July 14, 2016, Kaplan entered into a credit agreement (the Kaplan Credit Agreement) among Kaplan International Holdings Limited, as borrower, the lenders party thereto, HSBC BANK PLC as Facility Agent, and other agents party thereto. The Kaplan Credit Agreement provides for a four-year credit facility in an aggregate principal amount of £75 million. Borrowings bear interest at a rate per annum of LIBOR plus an applicable interest rate margin between 1.25% and 1.75%, in each case determined on a quarterly basis by reference to a pricing grid based upon the Company’s total leverage ratio. The Kaplan Credit Agreement requires that 6.66% of the amount of the loan be repaid on the first three anniversaries of funding, with the remaining balance due on July 1, 2020. The Kaplan Credit Agreement contains terms and conditions, including remedies in the event of a default by the Company, typical of facilities of this type and requires the Company to maintain a leverage ratio of not greater than 3.5 to 1.0 and a consolidated interest coverage ratio of at least 3.5 to 1.0 based upon the ratio of consolidated adjusted EBITDA to consolidated interest expense as determined pursuant to the Kaplan Credit Agreement. As of December 31, 2017, the Company is in compliance with all financial covenants. On July 25, 2016, Kaplan borrowed £75 million under the Kaplan Credit Agreement. On the same date, Kaplan entered into an interest rate swap agreement with a total notional value of £75 million and a maturity date of July 1, 2020. The interest rate swap agreement will pay Kaplan variable interest on the £75 million notional amount at the three-month LIBOR, and Kaplan will pay the counterparties a fixed rate of 0.51%, effectively resulting in a total fixed interest rate of 2.01% on the outstanding borrowings at the current applicable margin of 1.50%. The interest rate swap agreement was entered into to convert the variable rate British pound borrowing under the Kaplan Credit Agreement into a fixed rate borrowing. The Company provided a guarantee on any borrowings under the Kaplan Credit Agreement. Based on the terms of the interest rate swap agreement and the underlying borrowing, the interest rate swap agreement was determined to be effective and thus qualifies as a cash flow hedge. As such, changes in the fair value of the interest rate swap are recorded in other comprehensive income on the accompanying Consolidated Balance Sheets until earnings are affected by the variability of cash flows. In January 2009, the Company issued $400 million in unsecured ten-year fixed-rate notes due February 1, 2019 (the Notes). The Notes have a coupon rate of 7.25% per annum, payable semiannually on February 1 and August 1. Under the terms of the Notes, unless the Company has exercised its right to redeem the Notes, the Company is required to offer to repurchase the Notes in cash at 101% of the principal amount, plus accrued and unpaid interest, upon the occurrence of both a Change of Control and Below Investment Grade Rating Events as described in the Prospectus Supplement of January 27, 2009. In June 2015, Cable ONE issued $550 million in debt. With the Cable ONE spin-off effective on July 1, 2015, the Cable ONE debt is no longer an obligation of the Company. On June 29, 2015, the Company entered into a credit agreement (the Credit Agreement) providing for a U.S. $200 million five-year revolving credit facility (the Facility) with each of the lenders party thereto, Wells Fargo Bank, National Association as Administrative Agent (Wells Fargo), JPMorgan Chase Bank, N.A., as Syndication Agent, and HSBC Bank USA, National Association, as Documentation Agent (the Credit Agreement). The Company is required to pay a commitment fee on a quarterly basis, based on the Company’s leverage ratio, of between 0.15% and 0.25% of the amount of the Facility. Any borrowings are made on an unsecured basis and bear interest at the Company’s option, either at (a) a fluctuating interest rate equal to the highest of Wells Fargo’s prime rate, 0.50 percent above the Federal funds rate or the one-month Eurodollar rate plus 1%, or (b) the Eurodollar rate for the applicable interest period as defined in the Credit Agreement, which is generally a periodic rate equal to LIBOR, in each case plus an applicable margin that depends on the Company’s consolidated debt to consolidated adjusted EBITDA (as determined pursuant to the Credit Agreement, “leverage ratio”). 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. Any outstanding borrowings must be repaid on or prior to the final termination date. The Credit Agreement contains terms and conditions, including remedies in the event of a default by the Company, typical of facilities of this type and requires the Company to maintain a leverage ratio of not greater than 3.5 to 1.0 and a consolidated interest coverage ratio of at least 3.5 to 1.0 based upon the ratio of consolidated adjusted EBITDA to consolidated interest expense as determined pursuant to the Credit Agreement. As of December 31, 2017, the Company is in compliance with all financial covenants. During 2017 and 2016, the Company had average borrowings outstanding of approximately $493.2 million and $443.9 million, respectively, at average annual interest rates of approximately 6.3% and 6.7%, respectively. The Company incurred net interest expense of $27.3 million, $32.3 million and $30.7 million during 2017, 2016 and 2015, respectively. The Company recorded interest income of $2.3 million and interest expense of $2.7 million for the years ended December 31, 2017 and 2016, respectively, to adjust the fair value of the mandatorily redeemable noncontrolling interest (see Note 3). The fair value of the mandatorily redeemable noncontrolling interest is based on an EBITDA multiple, adjusted for working capital and other items, which approximates fair value (Level 3 fair value assessment). At December 31, 2017 and 2016, the fair value of the Company’s 7.25% unsecured notes, based on quoted market prices (Level 2 fair value assessment), totaled $414.7 million and $438.7 million, respectively, compared with the carrying amount of $399.5 million and $399.1 million. The carrying value of the Company’s other unsecured debt at December 31, 2017, 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:
For the years ended December 31, 2017, 2016 and 2015, the Company recorded goodwill and other long-lived asset impairment charges of $9.6 million, $1.6 million and $259.7 million, respectively. The remeasurement of the goodwill and other long-lived assets is classified as a Level 3 fair value assessment due to the significance of unobservable inputs developed in the determination of the fair value. The Company used a discounted cash flow model to determine the estimated fair value of the reporting unit. A market value approach was also utilized to supplement the discounted cash flow model. The Company made estimates and assumptions regarding future cash flows, discount rates, long-term growth rates and market values to determine the reporting unit’s estimated fair value. For the year ended December 31, 2016, the Company recorded impairment charges totaling $27.0 million to its cost method investment relating to a preferred equity interest in a vocational school company due to a decline in business conditions. The measurement of the preferred equity interest is classified as a Level 3 fair value assessment due to the significance of unobservable inputs developed in the determination of the fair value. The Company used a discounted cash flow model to determine the estimated fair value of the preferred equity interest and made estimates and assumptions regarding future cash flows, discount rates, long-term growth rates and market values to determine the estimated fair value. |
Redeemable Preferred Stock |
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Dec. 31, 2017 | |
Temporary Equity [Abstract] | |
Redeemable Preferred Stock | REDEEMABLE PREFERRED STOCK On October 1, 2015, the Company redeemed its Series A preferred stock with a par value of $1.00 per share and a liquidation preference of $1,000 per share. The 10,510 shares outstanding were redeemed at the redemption price of $1,000 per share for $10.5 million. Prior to redemption, dividends on the Series A preferred stock were payable four times a year at the annual rate of $80.00 per share and in preference to any dividends on the Company’s common stock. The Series A preferred stock was not convertible into any other security of the Company, and the holders thereof had no voting rights except with respect to any proposed changes in the preferences and special rights of such stock. |
Capital Stock, Stock Awards, and Stock Options |
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Capital Stock, Stock Awards, and Stock Options [Abstract] | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Capital Stock, Stock Awards And Stock Options | CAPITAL STOCK, STOCK AWARDS AND STOCK OPTIONS Capital Stock. Each share of Class A common stock and Class B common stock participates equally in dividends. The Class B stock has limited voting rights and as a class has the right to elect 30% of the Board of Directors; the Class A stock has unlimited voting rights, including the right to elect a majority of the Board of Directors. During 2017, 2016, and 2015 the Company purchased a total of 88,361, 229,498, and 46,226 shares, respectively, of its Class B common stock at a cost of approximately $50.8 million, $108.9 million, and $23.0 million, respectively. On November 9, 2017, the Board of Directors authorized the Company to acquire up to 500,000 shares of its Class B common stock. The Company did not announce a ceiling price or time limit for the purchases. The authorization included 163,237 shares that remained under the previous authorization. At December 31, 2017, the Company had remaining authorization from the Board of Directors to purchase up to 472,678 shares of Class B common stock. Stock Awards. In 2012, the Company adopted an incentive compensation plan (the 2012 Plan), which, among other provisions, authorizes the awarding of Class B common stock to key employees in the form of stock awards, stock options and other awards involving the actual transfer of shares. All stock awards, stock options and other awards involving the actual transfer of shares issued subsequent to the adoption of this plan are covered under this incentive compensation plan. Stock awards made under the 2012 Plan are primarily subject to the general restriction that stock awarded to a participant will be forfeited and revert to Company ownership if the participant’s employment terminates before the end of a specified period of service to the Company. Some of the awards are also subject to performance conditions and will be forfeited and revert to Company ownership if the conditions are not met. As a result of the Cable ONE spin-off, the number of Class B common stock authorized for issuance under the 2012 Plan was increased from 500,000 shares to 772,588 shares. The individual award limit under the 2012 Plan was also increased from 50,000 shares to 77,258 shares per calendar year. At December 31, 2017, there were 589,483 shares reserved for issuance under the 2012 incentive compensation plan. Of this number, 157,506 shares were subject to stock awards and stock options outstanding, and 431,977 shares were available for future awards. Activity related to stock awards under the 2012 incentive compensation plan for the year ended December 31, 2017 was as follows:
In connection with the spin-off of Cable ONE, the Company modified the terms of 10,830 restricted stock awards in the second quarter of 2015 affecting 21 Cable ONE employees. The modification resulted in the acceleration of the vesting period of 6,324 restricted stock awards and the forfeiture of 4,506 restricted stock awards. The Company recorded incremental stock compensation expense, net of forfeitures, in the second quarter of 2015 amounting to $3.7 million, which is reflected in discontinued operations in the Company’s consolidated financial statements. The spin-off also resulted in a modification of some of the Company’s outstanding restricted stock awards. The holders of restricted stock awards received Cable ONE restricted common stock, on a pro rata basis, as part of the distribution. The modification of the restricted stock awards resulted in an estimated incremental stock compensation expense of $3.0 million that is being recognized over the remaining service periods of the unvested restricted stock awards through the end of 2018. In the fourth quarter of 2015, the Company also modified the terms of an additional 9,800 restricted stock awards affecting one now former employee. The modification resulted in the acceleration of the vesting period of 9,412 restricted stock awards and the forfeiture of 388 restricted stock awards. As a result, the Company recorded incremental stock compensation expense, net of forfeitures, of $6.0 million. For the share awards outstanding at December 31, 2017, the aforementioned restriction will lapse in 2018 for 14,100 shares, in 2019 for 22,675 shares, in 2020 for 250 shares and in 2021 for 14,550 shares. Also, in early 2018, the Company issued stock awards of 200 shares. Stock-based compensation costs resulting from Company stock awards were $8.1 million, $11.0 million and $25.3 million in 2017, 2016 and 2015, respectively. As of December 31, 2017, there was $10.2 million of total unrecognized compensation expense related to these awards. That cost is expected to be recognized on a straight-line basis over a weighted average period of 1.4 years. Stock Options. The Company’s 2003 employee stock option plan reserves 1,900,000 shares of the Company’s Class B common stock for options to be granted under the plan. The purchase price of the shares covered by an option cannot be less than the fair value on the grant date. Options generally vest over four years and have a maximum term of ten years. At December 31, 2017, there were 79,589 shares reserved for issuance under this stock option plan, which were all subject to options outstanding. Stock options granted under the 2012 Plan cannot be less than the fair value on the grant date, generally vest over four years and have a maximum term of ten years. In 2017 and 2015, grants were issued that vest over six years. Activity related to options outstanding for the year ended December 31, 2017 was as follows:
In connection with the spin-off of Cable ONE, the Company modified outstanding stock options to add an antidilution provision. This resulted in an incremental stock compensation expense of $23.5 million, of which $18.8 million related to fully vested stock options was recognized as a one-time expense in the third quarter of 2015, with the remaining $4.7 million to be recognized over the remaining service periods of the unvested stock options through the end of 2018. The $18.8 million expense is included in the Company’s corporate office segment results and in selling, general and administrative in the Consolidated Statements of Operations. Of the shares covered by options outstanding at the end of 2017, 128,394 are now exercisable; 17,332 will become exercisable in 2018; 17,333 will become exercisable in 2019; 17,334 will become exercisable in 2020; 4,459 will become exercisable in 2021; 333 will become exercisable in 2022; and 335 will become exercisable in 2023. For 2017, 2016 and 2015, the Company recorded expense of $2.0 million, $2.4 million and $22.9 million related to stock options, respectively. Information related to stock options outstanding and exercisable at December 31, 2017, is as follows:
At December 31, 2017, the intrinsic value for all options outstanding, exercisable and unvested was $19.3 million, $19.3 million and $0.0 million, respectively. The intrinsic value of a stock option is the amount by which the market value of the underlying stock exceeds the exercise price of the option. The market value of the Company’s stock was $558.35 at December 31, 2017. At December 31, 2017, there were 57,126 unvested options related to this plan with an average exercise price of $770.67 and a weighted average remaining contractual term of 7.2 years. At December 31, 2016, there were 72,124 unvested options with an average exercise price of $761.30 and a weighted average remaining contractual term of 8.1 years. As of December 31, 2017, total unrecognized stock-based compensation expense related to stock options was $6.4 million, which is expected to be recognized on a straight-line basis over a weighted average period of approximately 3.2 years. There were 3,476 options exercised during 2017. The total intrinsic value of options exercised during 2017 was $0.7 million; a tax benefit from these stock option exercises of $0.3 million was realized. There were 4,726 options exercised during 2016. The total intrinsic value of options exercised during 2016 was $1.2 million; a tax benefit from these stock option exercises of $0.5 million was realized. There were 40,527 options exercised during 2015. The total intrinsic value of options exercised during 2015 was $19.5 million; a tax benefit from these option exercises of $7.8 million was realized. During 2017 and 2015, the Company granted 2,000 and 24,742 options at an exercise price above the fair market value of its common stock at the date of grant, respectively. All other options granted during 2015 were at an exercise price equal to the fair market value of the Company’s common stock at the date of grant. The weighted average grant-date fair value of options granted during 2017 and 2015 was $120.47 and $155.00, respectively. No options were granted during 2016. The fair value of options at date of grant was estimated using the Black-Scholes method utilizing the following assumptions:
The Company also maintains a stock option plan at Kaplan. Under the provisions of this plan, options are issued with an exercise price equal to the estimated fair value of Kaplan’s common stock, and options vest ratably over the number of years specified (generally four to five years) at the time of the grant. Upon exercise, an option holder may receive Kaplan shares or cash equal to the difference between the exercise price and the then fair value. At December 31, 2017, a Kaplan senior manager holds 7,206 Kaplan restricted shares. The fair value of Kaplan’s common stock is determined by the Company’s compensation committee of the Board of Directors, and in January 2018, the committee set the fair value price at $1,500 per share. During 2015, 2,500 options were awarded to a Kaplan senior manager at a price of $1,180 that would have vested over a four-year period. No options were awarded during 2017 and 2016; no options were exercised during 2017, 2016 or 2015; and due to 2015 forfeitures, there were no options outstanding at December 31, 2017. Kaplan recorded stock compensation expense of $1.2 million and $0.6 million in 2017 and 2016, respectively, and a credit of $1.8 million in 2015. At December 31, 2017, the Company’s accrual balance related to the Kaplan restricted shares totaled $10.8 million. There were no payouts in 2017, 2016 or 2015. 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 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 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 2017, 2016 and 2015 diluted earnings (loss) per share amounts exclude the effects of 104,000, 102,000 and 102,000 stock options outstanding, respectively, as their inclusion would have been antidilutive due to a market condition. The 2017, 2016 and 2015 diluted earnings (loss) per share amounts also exclude the effects of 5,250, 5,450 and 6,250 restricted stock awards, respectively, as their inclusion would have been antidilutive due to a performance condition. In 2017, 2016 and 2015, the Company declared regular dividends totaling $5.08, $4.84 and $9.10 per share, respectively. |
Pension and Postretirement Plans |
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Retirement Benefits, Description [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Pension and Postretirement Plans | PENSIONS AND OTHER POSTRETIREMENT PLANS The Company maintains various pension and incentive savings plans and contributed to multiemployer plans on behalf of certain union-represented employee groups. Most of the Company’s employees are covered by these plans. The Company also provides healthcare and life insurance benefits to certain retired employees. These employees become eligible for benefits after meeting age and service requirements. The Company uses a measurement date of December 31 for its pension and other postretirement benefit plans. In the first quarter of 2018, the Company adopted new guidance which requires the presentation of service cost in the same line item as other compensation costs arising from services by employees during the period, while the other components of the net periodic benefit are recognized in non-operating pension and postretirement benefit income in the Company's Consolidated Statement of Operations. Cable ONE Spin-Off. On July 1, 2015, as part of the spin-off, Cable ONE assumed the liability related to their employees participating in the Company’s SERP. The Company also eliminated the accrual of pension benefits for all Cable ONE employees related to their future service. As a result of the spin-off of Cable ONE, the Company remeasured the accumulated and projected benefit obligation of the pension plan and SERP as of July 1, 2015, and recorded curtailment and settlement gains. The new measurement basis was used for the recognition of the SERP cost recorded in the third quarter of 2015 and the pension benefit recorded for the first two months of the third quarter of 2015. The curtailment gain on the spin-off of Cable ONE is included in income from discontinued operations, net of tax. The settlement gain on the spin-off of Cable ONE is included in the SERP liability distributed to Cable ONE (see Note 4). KHE Campuses Sale. On September 3, 2015, the Company eliminated the accrual of pension benefits for almost all of the KHE Campuses employees related to their future service. As a result, the Company remeasured the accumulated and projected benefit obligation of the pension plan as of September 3, 2015, and the Company recorded a curtailment gain in the third quarter of 2015. The new measurement basis was used for the recognition of the Company’s pension benefit beginning in September 2015. The curtailment gain on the sale of the KHE Campuses is included in the loss on the sale of the KHE Campuses and reported in other income (expense), net in the Consolidated Statement of Operations. Defined Benefit Plans. The Company’s defined benefit pension plans consist of various pension plans and a SERP offered to certain executives of the Company. In the fourth quarter of 2017, the Company recorded $0.9 million related to a Separation Incentive Program for certain Kaplan employees, which was funded from the assets of the Company’s pension plan. In the third quarter of 2017, the Company recorded $0.9 million related to a Separation Incentive Program for certain Forney employees, which was funded from the assets of the Company’s pension plan. In the fourth quarter of 2016, the Company offered certain terminated participants with a vested pension benefit an opportunity to take their benefits in the form of a lump sum or an annuity. Most of the participants that elected a lump sum benefit under the program were paid in December 2016. Additional lump sum payments were paid in early 2017. The Company recorded an $18.0 million settlement gain related to the bulk lump sum pension program offering. In the fourth quarter of 2015, the Company recorded $0.9 million related to a Special Incentive Program for certain Corporate employees, which was funded from the assets of the Company’s pension plan. In the third quarter of 2015, the Company recorded $3.7 million related to a Special Incentive Program for certain Kaplan employees, which was funded from the assets of the Company’s pension plan. The following table sets forth obligation, asset and funding information for the Company’s defined benefit pension plans:
The accumulated benefit obligation for the Company’s pension plans at December 31, 2017 and 2016, was $1,261.8 million and $1,137.9 million, respectively. The accumulated benefit obligation for the Company’s SERP at December 31, 2017 and 2016, was $108.0 million and $103.0 million, respectively. The amounts recognized in the Company’s Consolidated Balance Sheets for its defined benefit pension plans are as follows:
Key assumptions utilized for determining the benefit obligation are as follows:
The Company made no contributions to its pension plans in 2017 and 2016, and the Company does not expect to make any contributions in 2018. The Company made contributions to its SERP of $5.6 million and $5.0 million for the years ended December 31, 2017 and 2016, respectively. As the plan is unfunded, the Company makes contributions to the SERP based on actual benefit payments. At December 31, 2017, future estimated benefit payments, excluding charges for early retirement programs, are as follows:
The total (benefit) cost arising from the Company’s defined benefit pension plans, including the portion included in discontinued operations, consists of the following components:
The net periodic benefit for the Company’s pension plans, as reported above, includes pension cost of $1.9 million reported in discontinued operations for 2015. The net periodic cost for the Company’s SERP, as reported above, includes cost of $0.2 million reported in discontinued operations for 2015. The curtailment gain of $2.2 million related to the Cable ONE spin-off is also included in discontinued operations for 2015. The curtailment gain of $1.1 million related to the sale of the KHE Campuses business is included in other income (expense), net for 2015. The costs for the Company’s defined benefit pension plans are actuarially determined. Below are the key assumptions utilized to determine periodic cost:
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Accumulated other comprehensive income (AOCI) includes the following components of unrecognized net periodic cost for the defined benefit plans:
During 2018, the Company expects to recognize the following amortization components of net periodic cost for the defined benefit plans:
Defined Benefit Plan Assets. The Company’s defined benefit pension obligations are funded by a portfolio made up of a U.S. stock index fund, 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 plans were allocated as follows:
The Company manages approximately 45% of the pension assets internally, of which the majority is invested in a U.S. stock index fund with the remaining investments in Berkshire Hathaway stock and short-term fixed-income securities. The remaining 55% of plan assets are 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 investment 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 from the Plan administrator. As of December 31, 2017, the investment managers can invest no more than 23% of the assets they manage 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. 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 December 31, 2017. 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 December 31, 2017 and 2016, the pension plan held investments in one common stock and one U.S. stock index fund that exceeded 10% of total plan assets. These investments were valued at $1,079.3 million and $978.8 million at December 31, 2017 and 2016, respectively, or approximately 46% and 48%, respectively, of total plan assets. The Company’s pension plan assets measured at fair value on a recurring basis were as follows:
Cash equivalents and other short-term investments. These investments are primarily held in U.S. Treasury securities and registered money market funds. 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. U.S. equities. These investments are held in common and preferred stock of U.S. corporations and American Depositary Receipts (ADRs) traded on U.S. exchanges. Common and preferred shares and ADRs are traded actively on exchanges, and price quotes for these shares are readily available. These investments are classified as Level 1 in the valuation hierarchy. International equities. These investments are held in common and preferred stock issued by non-U.S. corporations. Common and preferred shares are traded actively on exchanges, and price quotes for these shares are readily available. These investments are classified as Level 1 in the valuation hierarchy. U.S. stock index fund. This fund consists of investments held in a diversified mix of securities (U.S. and international stocks, and fixed-income securities) and a combination of other collective funds that together are designed to track the performance of the S&P 500 Index. The fund is valued using the net asset value (NAV) provided by the administrator of the fund and reviewed by the Company. The NAV is based on the value of the underlying assets owned by the fund, minus liabilities and divided by the number of units outstanding. The investment in this fund may be redeemed daily, subjected to the restrictions of the fund. This investment is classified as Level 3 in the valuation hierarchy. The following table provides a reconciliation of changes in pension assets measured at fair value on a recurring basis, using Level 3 inputs:
Other Postretirement Plans. The following table sets forth obligation, asset and funding information for the Company’s other postretirement plans:
The amounts recognized in the Company’s Consolidated Balance Sheets for its other postretirement plans are as follows:
The discount rates utilized for determining the benefit obligation at December 31, 2017 and 2016, for the postretirement plans were 3.11% and 3.31%, respectively. The assumed healthcare cost trend rate used in measuring the postretirement benefit obligation at December 31, 2017, was 7.81% for pre-age 65, decreasing to 4.5% in the year 2026 and thereafter. The assumed healthcare cost trend rate used in measuring the postretirement benefit obligation at December 31, 2017, was 8.42% for post-age 65, decreasing to 4.5% in the year 2026 and thereafter. Assumed healthcare cost trend rates have a significant effect on the amounts reported for the healthcare plans. A change of one percentage point in the assumed healthcare cost trend rates would have the following effects:
The Company made contributions to its postretirement benefit plans of $0.9 million for each of the years ended December 31, 2017 and 2016. As the plans are unfunded, the Company makes contributions to its postretirement plans based on actual benefit payments. At December 31, 2017, future estimated benefit payments are as follows:
The total (benefit) cost arising from the Company’s other postretirement plans consists of the following components:
The costs for the Company’s postretirement plans are actuarially determined. The discount rates utilized to determine periodic cost for the years ended December 31, 2017, 2016 and 2015, were 3.31%, 3.45% and 3.25%, respectively. AOCI included the following components of unrecognized net periodic benefit for the postretirement plans:
During 2018, the Company expects to recognize the following amortization components of net periodic cost for the other postretirement plans:
Multiemployer Pension Plans. In 2017, 2016 and 2015, the Company contributed to one multiemployer defined benefit pension plan under the terms of a collective-bargaining agreement that covered certain union-represented employees. The Company’s total contributions to the multiemployer pension plan amounted to $0.1 million in each year for 2017, 2016 and 2015. Savings Plans. The Company recorded expense associated with retirement benefits provided under incentive savings plans (primarily 401(k) plans) of approximately $7.5 million in 2017 and 2016, and $7.6 million in 2015. |
Other Non-Operating (Expense) Income |
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Other Nonoperating Income (Expense) [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Other Non-Operating (Expense) Income | OTHER NON-OPERATING INCOME (EXPENSE) A summary of non-operating income (expense) is as follows:
In the third quarter of 2016, the Company recorded an impairment of $15.0 million to the preferred equity interest in a vocational school company. In the fourth quarter of 2016, an additional $12.0 million impairment was recorded. In the second quarter of 2016, the Company sold the remaining portion of the Robinson Terminal real estate retained from the sale of the Publishing Subsidiaries, for a gain of $34.1 million. In June 2016, Residential contributed assets to a joint venture entered into with a Michigan hospital in exchange for a 40% equity interest and other assets, resulting in a $3.2 million gain (see Note 3). 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. In the first quarter of 2016, Kaplan sold Colloquy, which was part of Kaplan corporate and other, for a gain of $18.9 million. In the fourth quarter of 2015, the Company sold a portion of the Robinson Terminal real estate remaining from the sale of the Publishing Subsidiaries, for a gain of $21.4 million. In the third quarter of 2015, Kaplan sold the KHE Campuses business, and Franklyn Scholar, which was part of Kaplan International, for a total loss of $26.3 million. In the second quarter of 2015, the Company sold The Root and Kaplan sold two small businesses for a total gain of $2.9 million. In the second quarter of 2015, the Company benefited from a favorable $4.8 million out of period adjustment to the gain on the sale of Classified Ventures related to the fourth quarter of 2014. With respect to this error, the Company has concluded that it was not material to the Company’s financial position or results of operations for 2015 and the related interim period, based on its consideration of quantitative and qualitative factors. 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 3). 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 are as follows:
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Leases and Other Commitments |
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Leases And Other Commitments [Abstract] | |||||||||||||||||||||||||||||||||||||||||
Leases and Other Commitments | LEASES AND OTHER COMMITMENTS The Company leases real property under operating agreements. Many of the leases contain renewal options and escalation clauses that require payments of additional rent to the extent of increases in the related operating costs. At December 31, 2017, future minimum rental payments under noncancelable operating leases approximate the following:
Minimum payments have not been reduced by minimum sublease rentals of $78.0 million due in the future under noncancelable subleases. Rent expense under operating leases, including a portion reported in discontinued operations, was approximately $81.1 million, $86.9 million and $102.6 million in 2017, 2016 and 2015, respectively. Sublease income was approximately $14.8 million, $14.3 million and $6.7 million in 2017, 2016 and 2015, respectively. In connection with the sale of the KHE Campuses business, Kaplan is secondarily liable on a number of leases that were transferred to the buyer; the leases run through 2024 with commitments totaling approximately $33.5 million at December 31, 2017. The Company’s broadcast subsidiaries are parties to certain agreements that commit them to purchase programming to be produced in future years. At December 31, 2017, such commitments amounted to approximately $21.7 million. If such programs are not produced, the Company’s commitment would expire without obligation. |
Contingencies |
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Commitments and Contingencies Disclosure [Abstract] | |
Contingencies | CONTINGENCIES Litigation, Legal and Other Matters. The Company and its subsidiaries are subject to complaints and administrative proceedings and are defendants in various civil lawsuits that have arisen in the ordinary course of their businesses, including contract disputes; actions alleging negligence, libel, defamation, invasion of privacy; trademark, copyright and patent infringement; U.S. False Claims Act (False Claims Act) violations; violations of applicable wage and hour laws; and statutory or common law claims involving current and former students and employees. 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. However, based on currently available information, management believes it is reasonably possible that future losses from existing and threatened legal, regulatory and other proceedings in excess of the amounts recorded could reach approximately $30 million. On February 6, 2008, a purported class-action lawsuit was filed in the U.S. District Court for the Central District of California by purchasers of BAR/BRI bar review courses, from July 2006 onward, alleging antitrust claims against Kaplan and West Publishing Corporation, BAR/BRI’s former owner. On April 10, 2008, the court granted defendants’ motion to dismiss, a decision that was reversed by the Ninth Circuit Court of Appeals on November 7, 2011. The Ninth Circuit also referred the matter to a mediator for the purpose of exploring a settlement. In the fourth quarter of 2012, the parties reached a comprehensive agreement to settle the matter. The settlement was approved by the District Court in September 2013 but has not yet been administered due to appeals relating to attorneys’ fees. In the fourth quarter of 2017, the Ninth Circuit remanded to the district court which once again set attorneys’ fees on January 11, 2018. Absent another appeal, administration and disbursement of the settlement should proceed, though Kaplan cannot predict when. On or about January 17, 2008, an Assistant U.S. Attorney in the Civil Division of the U.S. Attorney’s Office for the Eastern District of Pennsylvania contacted KHE’s former Broomall campus and made inquiries about the Surgical Technology program, including the program’s eligibility for Title IV U.S. Federal financial aid, the program’s student loan defaults, licensing and accreditation. Kaplan responded to the information requests and fully cooperated with the inquiry. The ED also conducted a program review at the Broomall campus, and Kaplan likewise cooperated with the program review. On July 22, 2011, the U.S. Attorney’s Office for the Eastern District of Pennsylvania announced that it had entered into a comprehensive settlement agreement with Kaplan that resolved the U.S. Attorney’s inquiry, provided for the conclusion of the ED’s program review and also settled a previously sealed U.S. Federal False Claims Act (False Claims Act) complaint that had been filed by a former employee of the CHI-Broomall campus. The total amount of all required payments by Broomall under the agreements was $1.6 million. Pursuant to the comprehensive settlement agreement, the U.S. Attorney inquiry has been closed, the False Claims Act complaint (United States of America ex rel. David Goodstein v. Kaplan, Inc. et al.) was dismissed with prejudice and the ED will issue a final program review determination. However, to date, the ED has not issued the final report. At this time, Kaplan cannot predict the contents of the pending final program review determination or the ultimate impact the proceedings may have on Kaplan. During 2014, certain Kaplan subsidiaries were subject to 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 remaining case is captioned United States of America ex rel. Carlos Urquilla-Diaz et al. v. Kaplan University et al. (unsealed March 25, 2008). On August 17, 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. On October 31, 2012, the court entered summary judgment in favor of the Company as to the sole remaining employment claim in the Diaz complaint. On July 16, 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 Circuit. Arguments on both appeals were heard on February 3, 2015. On March 11, 2015, the appellate court issued a decision affirming the lower court’s dismissal of all of Gillespie’s claims. The appellate court also dismissed three of the four Diaz claims, but reversed and remanded on Diaz’s claim that incentive compensation for admissions representatives was improperly based solely on enrollment counts. Kaplan filed an answer to Diaz’s amended complaint on September 11, 2015. Kaplan filed a motion to dismiss Diaz’s claims, and a hearing was held on December 17, 2015. On March 24, 2016, the Court denied the motion to dismiss. Discovery in the case closed in January 2017. Kaplan filed a motion for summary judgment on February 21, 2017. Summary judgment was granted in full and entered on July 13, 2017. Diaz filed a notice of appeal in September 2017 and has until February 28, 2018 to file appellate briefs. On February 7, 2011, KHE received a Civil Investigative Demand from the Office of the Attorney General of the State of Illinois. The demand primarily sought information pertaining to Kaplan University’s online students who are residents of Illinois. KHE has cooperated with the Illinois Attorney General and provided the requested information. Although the matter is not technically closed and KHE may receive further requests for information from the Illinois Attorney General, there has been no such further correspondence over the past seven years to date. The Company cannot predict the outcome of this inquiry. On July 20, 2011, KHE received a subpoena from the Office of the Attorney General of the State of Delaware. The demand primarily sought information pertaining to Kaplan University’s online students and Kaplan Higher Education Campuses’ former students who are residents of Delaware. KHE has cooperated with the Delaware Attorney General and provided the information requested in the subpoena. Although the matter is not technically closed and KHE may receive further requests for information from the Delaware Attorney General, there has been no such further correspondence over the past seven years to date. The Company cannot predict the outcome of this inquiry. On January 16, 2012, prior to Kaplan’s sale of the Kidum Group in Israel, the Kidum Group received notice of a putative class-action complaint against the Kidum Group’s Wall Street Institute business, alleging violations of Israeli consumer protection law in connection with certain enrollment and refund policies. Wall Street Institute and the plaintiffs are attempting to settle the dispute. Kaplan no longer has any obligations to the purchaser under the terms of the agreement of sale. On September 30, 2016, a purported class-action lawsuit was filed against KHE and Education Corporation of America d/b/a Brightwood College, in Alameda County Superior Court, in Oakland, CA, by Donna Hillman alleging violations of California wage and hour laws as they apply to “adjunct” or part-time faculty. The complaint seeks a declaratory judgment that Kaplan violated the California Labor Code and an award of damages for allegedly unpaid wages, penalties under the California Labor Code, interest and attorney’s fees. A response and general denial was filed on November 2, 2016 after which KHE moved to transfer the venue to Sacramento, CA. The parties reached an agreement to settle this matter and in December 2017, the settlement was approved by the court. In October 2017, Kaplan received a citation from the California Bureau for Private Postsecondary Education (BPPE) that non-employees may not be used to recruit students for its English-language programs operating in California. Kaplan has accepted the citation and amended its business practices. On March 28, 2016, a class-action lawsuit was filed in the U.S. District Court for the Northern District of Illinois by Erin Fries, a physical therapist formerly employed by Residential, against Residential Home Health, LLC, Residential Home Health Illinois, LLC, and David Curtis. The complaint alleges violations of the FLSA and the Illinois minimum wage law. The complaint seeks damages, attorney’s fees and costs. At this time, the Company cannot predict the outcome of this matter. In August 2017, the Pennsylvania Department of Health cited Celtic Healthcare of Westmoreland, LLC for being out of compliance with four conditions of the Medicare Conditions of Participation between August 7, 2017, and September 6, 2017. Celtic Healthcare of Westmoreland, LLC d/b/a Allegheny Health Network Healthcare@Home Home Health (“AHN H@H Home Health”) is a wholly owned subsidiary of a joint venture between West Penn Allegheny Health System, Inc. and Celtic Healthcare, Inc. In light of this 31-day period of non-compliance, the Department of Health issued a provisional license for AHN H@H Home Health. Following a re-survey investigation by the Pennsylvania Department of Health, on January 12, 2018, the Department of Health removed the provisional license assigned to AHN H@H Home Health and restored its unrestricted license. The Pennsylvania Department of Health will alert the Centers for Medicare and Medicaid Services (CMS) about this matter. CMS has the authority to impose civil monetary penalties of up to $10,000 per day or per instance for non-compliance. At this time, the Company cannot predict the outcome of this matter. Her Majesty’s Revenue and Customs (HMRC), a department of the U.K. government responsible for the collection of taxes, has raised assessments against the Kaplan U.K. Pathways business for Value Added Tax (VAT) relating to 2017 and earlier years, which have been paid by Kaplan. Kaplan has challenged these assessments and the case is currently on appeal to a tax tribunal with a hearing expected later in 2018 or 2019. The Company believes it has met all requirements under U.K. VAT law and expects to recover the £10.9 million receivable related to the assessments that have been paid. If the Company does not prevail in this case, a pre-tax charge of £10.9 million will be recorded to operating expense in the Company’s statement of operations. Following the Grenfell Tower fire in the U.K. on June 14, 2017, government authorities issued advise to building owners in respect of certain types of cladding on its student residence buildings across the U.K. One student residence is expected to require remedial work. Additional investigations are ongoing. Remedial work on this building will be undertaken once these investigations are complete. At this time, it is not possible to predict the scope of this work. Student Financial Aid. The Company’s higher education division derives the majority of its revenues from U.S. Federal financial aid received by its students under Title IV programs administered by the ED pursuant to the Higher Education Act (HEA), as amended. To maintain eligibility to participate in Title IV programs, a school must comply with extensive statutory and regulatory requirements relating to its financial aid management, educational programs, financial strength, administrative capability, compensation practices, facilities, recruiting practices, representations made to current and prospective students, and various other matters. In addition, the school must be licensed, or otherwise legally authorized, to offer postsecondary educational programs by the appropriate governmental body in the state or states in which it is physically located or is otherwise subject to state authorization requirements, be accredited by an accrediting agency recognized by the ED and be certified to participate in the Title IV programs by the ED. Schools are required periodically to apply for renewal of their authorization, accreditation or certification with the applicable state governmental bodies, accrediting agencies and the ED. Kaplan University is assigned its own identification number, known as an OPEID number, for the purpose of determining compliance with certain Title IV requirements. Failure to comply with the requirements of the Higher Education Act or related regulations could result in the restriction or loss of the ability to participate in Title IV programs and subject the Company to financial penalties and refunds. No assurance can be given that Kaplan University or its individual programs will maintain their Title IV eligibility, accreditation and state authorization in the future or that the ED might not successfully assert that Kaplan University has previously failed to comply with Title IV requirements. ED regulations require schools participating in Title IV programs to calculate correctly and return to the ED on a timely basis unearned Title IV funds disbursed to students who withdraw from a program of study prior to completion. Kaplan recently determined that a procedural change that was implemented with respect to student financial aid refunds may not have been in accordance with the regulation governing return of financial aid for students who withdraw from a program prior to completion. Consequently, $8.4 million in estimated unreturned funds from prior quarters and year was recorded in Kaplan’s fourth quarter 2017 results; this estimated refund liability is included in current liabilities on the Company’s consolidated balance sheet at December 31, 2017. No restatement of prior period financial statements and no change in previously reported financial results was required due to the immateriality of the adjustment for the periods presented. Kaplan has self-reported this matter to the ED. For the years ended December 31, 2017, 2016 and 2015, approximately $374 million, $437 million and $628 million, respectively, of the Company’s education division revenue was derived from financial aid received by students under Title IV programs. Financial aid and assistance programs are subject to political and governmental budgetary considerations. There is no assurance that such funding will be maintained at current levels. Extensive and complex regulations in the U.S. govern all of the government financial assistance programs in which students participate. ED Program Reviews. The ED has undertaken program reviews at various KHE locations. On February 23, 2015, the ED began a review of KU. The review will assess Kaplan’s administration of its Title IV and Higher Education Act programs and will initially focus on the 2013 to 2014 and 2014 to 2015 award years. On December 17, 2015, KU 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 KU 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 KU as a result of this review. During the period of provisional certification, KU must obtain prior ED approval to open a new location, add an educational program, acquire another school or make any other significant change. In addition, there are two open program reviews at campuses that were part of the KHE Campuses business prior to its sale in 2015 to Education Corporation of America (ECA), and we await the ED’s final reports on the program reviews at former KHE Broomall, PA; and Pittsburgh, PA, locations. Kaplan retains responsibility for any financial obligation resulting from the ED program reviews at the KHE Campuses business that were open at the time of sale. 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. The 90/10 Rule. Under regulations referred to as the 90/10 rule, an institution would lose its eligibility to participate in Title IV programs for a period of at least two fiscal years if the institution derives more than 90% of its receipts from Title IV programs, as calculated on a cash basis in accordance with the Higher Education Act and applicable ED regulations, in each of two consecutive fiscal years. An institution with Title IV receipts exceeding 90% for a single fiscal year would be placed on provisional certification and may be subject to other enforcement measures. Kaplan University derived less than 74% and less than 77% of its receipts from Title IV programs in 2017 and 2016, respectively. |
Business Segments |
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Segment Reporting [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Business Segments | BUSINESS SEGMENTS The Company reorganized its operations in the first quarter of 2018 into the following six reportable segments for the purpose of making operating decisions and assessing performance: Kaplan Higher Education, Kaplan Professional (U.S.), Kaplan Test Preparation, Kaplan International, Television Broadcasting and Healthcare. As a result of the Kaplan University transaction, Kaplan reorganized its higher education operations into the following two operating segments: Higher Education and Professional (U.S.). The higher education segment comprises the historical KU for-profit postsecondary education business and the future non-academic operations support services provided to the new university, Purdue University Global. The Professional (U.S.) segment comprises the KU School of Professional and Continuing Education, which provides professional training and exam preparation for professional certifications and licensures. The business segments disclosed in the Consolidated Financial Statements are based on this new organizational structure and information reviewed by the Company's management to evaluate the business segment results. Segment operating results for 2017, 2016 and 2015 have been revised to reflect this organizational change. Basis of Presentation. The Company’s organizational structure is based on a number of factors that management uses to evaluate, view and run its business operations, which include, but are not limited to, customers, the nature of products and services and use of resources. The business segments disclosed in the Consolidated Financial Statements are based on this organizational structure and information reviewed by the Company’s management to evaluate the business segment results. The Company has six reportable segments: Kaplan International, KHE, KTP, Professional (U.S.), and television broadcasting and healthcare. The Company evaluates segment performance based on operating income before amortization of intangible assets and impairment of goodwill and other long-lived assets. The accounting policies at the segments are the same as described in Note 2. In computing income from operations by segment, the effects of equity in earnings (losses) of affiliates, interest income, interest expense, non-operating pension and postretirement benefit income, other non-operating income and expense items and income taxes are not included. Intersegment sales are not material. Identifiable assets by segment are those assets used in the Company’s operations in each business segment. The Prepaid Pension cost is not included in identifiable assets by segment. Investments in marketable equity securities are discussed in Note 5. Education. Education products and services are provided by Kaplan, Inc. Kaplan International includes professional training and postsecondary education businesses largely outside the United States, as well as English-language programs. KHE includes Kaplan’s domestic postsecondary education businesses, made up of fixed-facility colleges and online postsecondary and career programs. KTP includes Kaplan’s standardized test preparation and new economy skills training programs. Professional (U.S.) includes the domestic professional training and other continuing education businesses. 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 in January 2015. The education division’s operating results exclude the sale of this business as it is included in discontinued operations, net of tax, for 2015. In recent years, Kaplan has formulated and implemented restructuring plans at its various businesses that have resulted in significant costs in the past three years, with the objective of establishing lower cost levels in future periods. Across all Kaplan businesses, restructuring costs of $9.1 million, $11.9 million and $40.6 million were recorded in 2017, 2016 and 2015, respectively, as follows:
Kaplan International incurred restructuring costs of $2.9 million, $4.7 million and $1.3 million in 2017, 2016 and 2015, respectively. These restructuring costs were largely in the U.K. and Australia and included severance charges, lease obligations, and accelerated depreciation. KHE incurred restructuring costs of $1.4 million, $7.1 million and $12.4 million in 2017, 2016 and 2015, respectively, primarily from severance and Special Incentive Program expense, lease obligation losses and accelerated depreciation. On February 12, 2015, Kaplan entered into a Purchase and Sale Agreement to sell 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 a vocational school company. The transaction closed on September 3, 2015. In addition, Kaplan recorded a $6.9 million other long-lived asset impairment charge in connection with its KHE Campuses business in the second quarter of 2015. KTP incurred restructuring costs of $4.3 million in 2017 primarily from severance. Kaplan Corporate incurred restructuring costs of $25.7 million in 2015 related to accelerated depreciation, severance and Special Incentive Program expense and lease obligations losses. Total accrued restructuring costs at Kaplan were $8.5 million and $11.8 million at the end of 2017 and 2016, respectively. Television Broadcasting. Television broadcasting operations are conducted through seven television stations serving the Detroit, Houston, San Antonio, Orlando, Jacksonville and Roanoke television markets. All stations are network-affiliated (except for WJXT in Jacksonville), with revenues derived primarily from sales of advertising time. In addition, the stations generate revenue from retransmission consent agreements for the right to carry their signals. Healthcare. Graham Healthcare Group (GHG), made up of Celtic and Residential, provides home health and hospice services. Other Businesses. Other businesses includes the following:
In November 2015, the Company announced that Trove, a digital innovation team that builds products and technologies in the news space, would largely be integrated into SocialCode. Corporate Office. Corporate office includes the expenses of the Company’s corporate office and certain continuing obligations related to prior business dispositions. Geographical Information. The Company’s non-U.S. revenues in 2017, 2016 and 2015 totaled approximately $637 million, $624 million and $660 million, respectively, primarily from Kaplan’s operations outside the U.S. Additionally, revenues in 2017, 2016 and 2015 totaled approximately $320 million, $312 million, and $319 million, respectively, from Kaplan’s operations in the U.K. The Company’s long-lived assets in non-U.S. countries (excluding goodwill and other intangible assets), totaled approximately $89 million and $67 million at December 31, 2017 and 2016, respectively. Company information broken down by operating segment and education division:
Asset information for the Company’s business segments is as follows:
The Company’s education division comprises the following operating segments:
In the third quarter of 2015, a favorable $3.0 million out of period revenue adjustment was included at the test preparation segment that related to prior periods from 2011 through the second quarter of 2015. With respect to this error, the Company has concluded that it was not material to the Company’s financial position or results of operations for 2015 and prior years and the related interim periods, based on its consideration of quantitative and qualitative factors. Asset information for the Company’s education division is as follows:
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Summary of Quarterly Operating Results and Comprehensive Income (Unaudited) |
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Quarterly Financial Information Disclosure [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Summary of Quarterly Operating Results and Comprehensive Income (Unaudited) | SUMMARY OF QUARTERLY OPERATING RESULTS AND COMPREHENSIVE INCOME (UNAUDITED) The Company has revised certain prior period amounts to reflect the adoption of the new presentation of net periodic pension cost and net periodic postretirement benefit cost for defined benefit plans; and the reclassification of costs associated with fringe benefits between operating expenses and selling, general and administrative expenses (see Note 1). Quarterly results of operations and comprehensive income for the year ended December 31, 2017, is as follows:
The sum of the four quarters may not necessarily be equal to the annual amounts reported in the Consolidated Statements of Operations due to rounding. Certain amounts were reclassified from other revenue to advertising revenue (see Note 2). In the fourth quarter of 2017, an unfavorable $2.8 million net out of period expense adjustment was included that related to prior periods from the third quarter of 2016 through the third quarter of 2017. With respect to this error, the Company has concluded that it was not material to the Company’s financial position or results of operations for 2017 and 2016 and related interim periods, based on its consideration of quantitative and qualitative factors. Quarterly results of operations and comprehensive income for the year ended December 31, 2016, is as follows:
The sum of the four quarters may not necessarily be equal to the annual amounts reported in the Consolidated Statements of Operations due to rounding. Certain amounts were reclassified from other revenue to advertising revenue (see Note 2). Quarterly impact from certain items in 2017 and 2016 (after-tax and diluted EPS amounts):
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Summary of Significant Accounting Policies (Policy) |
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Accounting Policies [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Basis of Presentation and Principles of Consolidation | Basis of Presentation and Principles of Consolidation. The accompanying Consolidated Financial Statements have been prepared in accordance with generally accepted accounting principles (GAAP) in the United States and include the assets, liabilities, results of operations and cash flows of the Company and its majority-owned and controlled subsidiaries. All significant intercompany accounts and transactions have been eliminated in consolidation. |
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Reclassifications | Reclassifications. Certain amounts in previously issued financial statements have been reclassified to conform with the 2017 presentation. This includes the reclassification of $19.8 million and $19.2 million from other revenue to advertising revenue in the Consolidated Statements of Operations for the years ended December 31, 2016 and 2015, respectively. |
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Use of Estimates | Use of Estimates. The preparation of financial statements in conformity with GAAP requires management to make estimates and judgments that affect the amounts reported in the financial statements. 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. On an ongoing basis, the Company evaluates its estimates and assumptions. |
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Business Combinations | Business Combinations. The purchase price of an acquisition is allocated to the assets acquired, including intangible assets, and liabilities assumed, based on their respective fair values at the acquisition date. Acquisition-related costs are expensed as incurred. The excess of the cost of an acquired entity over the net of the amounts assigned to the assets acquired and liabilities assumed is recognized as goodwill. The net assets and results of operations of an acquired entity are included in the Company’s Consolidated Financial Statements from the acquisition date. |
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Cash and Cash Equivalents | Cash and Cash Equivalents. Cash and cash equivalents consist of cash on hand, short-term investments with original maturities of three months or less and investments in money market funds with weighted average maturities of three months or less. |
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Restricted Cash | Restricted Cash. Restricted cash represents amounts held for students that were received from U.S. Federal and state governments under various aid grant and loan programs, such as Title IV of the U.S. Federal Higher Education Act of 1965 (Higher Education Act), as amended, that the Company is required to maintain pursuant to U.S. Department of Education (ED) and other regulations. Federal regulations stipulate that the Company has a fiduciary responsibility to segregate Federal funds from all other funds to ensure the funds are only used for the benefit of eligible students. The regulations further indicate that funds received under Federal aid programs are held in trust for the intended student beneficiary and the ED, and as trustee of these funds, the Company may not use the funds for any other purpose until the funds are applied to eligible student charges, which occurs within three days of the receipt of the funds. Restricted cash also includes (i) certain funds that the Company may be required to return if a student who receives Title IV program funds withdraws from a program and (ii) funds required to be held by non-U.S. higher education institutions for prepaid tuition. |
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Concentration of Credit Risk | Concentration of Credit Risk. Cash and cash equivalents are maintained with several financial institutions domestically and internationally. Deposits held with banks may exceed the amount of insurance provided on such deposits. Generally, these deposits may be redeemed upon demand and are maintained with financial institutions with investment-grade credit ratings. The Company routinely assesses the financial strength of significant customers, and this assessment, combined with the large number and geographical diversity of its customers, limits the Company’s concentration of risk with respect to trade accounts receivable. |
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Allowance for Doubtful Accounts | Allowance for Doubtful Accounts. Accounts receivable have been reduced by an allowance for amounts that may be uncollectible in the future. This estimated allowance is based primarily on the aging category, historical collection experience and management’s evaluation of the financial condition of the customer. The Company generally considers an account past due or delinquent when a student or customer misses a scheduled payment. The Company writes off accounts receivable balances deemed uncollectible against the allowance for doubtful accounts following the passage of a certain period of time, or generally when the account is turned over for collection to an outside collection agency. |
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Investments in Marketable Equity Securities | Investments in Marketable Equity Securities. The Company’s investments in marketable equity securities are classified as available-for-sale and, therefore, are recorded at fair value in the Consolidated Financial Statements, with the change in fair value during the period excluded from earnings and recorded net of income taxes as a separate component of other comprehensive income. If the fair value of a marketable equity security declines below its cost basis and the decline is considered other than temporary, the Company will record a write-down, which is included in earnings. The Company uses the average cost method to determine the basis of the securities sold or reclassified out of other comprehensive income. |
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Fair Value Measurements | Fair Value Measurements. Fair value measurements are determined based on the assumptions that a market participant would use in pricing an asset or liability based on a three-tiered hierarchy that draws a distinction between market participant assumptions based on (i) observable inputs, such as quoted prices in active markets (Level 1); (ii) inputs other than quoted prices in active markets that are observable either directly or indirectly (Level 2); and (iii) unobservable inputs that require the Company to use present value and other valuation techniques in the determination of fair value (Level 3). Financial assets and liabilities are classified in their entirety based on the lowest level of input that is significant to the fair value measure. The Company’s assessment of the significance of a particular input to the fair value measurements requires judgment and may affect the valuation of the assets and liabilities being measured and their placement within the fair value hierarchy. For assets that are measured using quoted prices in active markets, the total fair value is the published market price per unit multiplied by the number of units held, without consideration of transaction costs. Assets and liabilities that are measured using significant other observable inputs are primarily valued by reference to quoted prices of similar assets or liabilities in active markets, adjusted for any terms specific to that asset or liability. The Company measures certain assets—including goodwill; intangible assets; property, plant and equipment; cost and equity-method investments—at fair value on a nonrecurring basis when they are deemed to be impaired. The fair value of these assets is determined with valuation techniques using the best information available and may include quoted market prices, market comparables and discounted cash flow models. |
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Fair Value of Financial Instruments | Fair Value of Financial Instruments. The carrying amounts reported in the Company’s Consolidated Financial Statements for cash and cash equivalents, restricted cash, accounts receivable, accounts payable and accrued liabilities, the current portion of deferred revenue and the current portion of debt approximate fair value because of the short-term nature of these financial instruments. The fair value of long-term debt is determined based on a number of observable inputs, including the current market activity of the Company’s publicly traded notes, trends in investor demands and market values of comparable publicly traded debt. The fair value of the interest rate hedge is determined based on a number of observable inputs, including time to maturity and market interest rates. |
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Inventories and Contracts in Progress | Inventories and Contracts in Progress. Inventories and contracts in progress are stated at the lower of cost or net realizable values and are based on the first-in, first-out (FIFO) method. Inventory costs include direct material, direct and indirect labor, and applicable manufacturing overhead. The Company allocates manufacturing overhead based on normal production capacity and recognizes unabsorbed manufacturing costs in earnings. The provision for excess and obsolete inventory is based on management’s evaluation of inventories on hand relative to historical usage, estimated future usage and technological developments. |
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Property, Plant and Equipment | Property, Plant and Equipment. Property, plant and equipment is recorded at cost and includes interest capitalized in connection with major long-term construction projects. Replacements and major improvements are capitalized; maintenance and repairs are expensed as incurred. Depreciation is calculated using the straight-line method over the estimated useful lives of the property, plant and equipment: 3 to 20 years for machinery and equipment; 20 to 50 years for buildings. The costs of leasehold improvements are amortized over the lesser of their useful lives or the terms of the respective leases. |
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Evaluation of Long-Lived Assets | Evaluation of Long-Lived Assets. The recoverability of long-lived assets and finite-lived intangible assets is assessed whenever adverse events or changes in circumstances indicate that recorded values may not be recoverable. A long-lived asset is considered to not be recoverable when the undiscounted estimated future cash flows are less than the asset’s recorded value. An impairment charge is measured based on estimated fair market value, determined primarily using estimated future cash flows on a discounted basis. Losses on long-lived assets to be disposed of are determined in a similar manner, but the fair market value would be reduced for estimated costs to dispose. |
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Goodwill and Other Intangible Assets | Goodwill and Other Intangible Assets. Goodwill is the excess of purchase price over the fair value of identified net assets of businesses acquired. The Company’s intangible assets with an indefinite life are principally from trade names and trademarks, and FCC licenses. Amortized intangible assets are primarily student and customer relationships and trade names and trademarks, with amortization periods up to 10 years. Costs associated with renewing or extending intangible assets are insignificant and expensed as incurred. The Company reviews goodwill and indefinite-lived intangible assets at least annually, as of November 30, for possible impairment. Goodwill and indefinite-lived intangible assets are reviewed for possible impairment between annual tests if an event occurs or circumstances change that would more likely than not reduce the fair value of the reporting unit or indefinite-lived intangible asset below its carrying value. The Company tests its goodwill at the reporting unit level, which is an operating segment or one level below an operating segment. The Company initially assesses qualitative factors to determine if it is necessary to perform the goodwill or indefinite-lived intangible asset quantitative impairment review. The Company reviews the goodwill and indefinite-lived assets for impairment using the quantitative process if, based on its assessment of the qualitative factors, it determines that it is more likely than not that the fair value of a reporting unit or indefinite-lived intangible asset is less than its carrying value, or if it decides to bypass the qualitative assessment. The Company reviews the carrying value of goodwill and indefinite-lived intangible assets utilizing a discounted cash flow model, and, where appropriate, a market value approach is also utilized to supplement the discounted cash flow model. The Company makes assumptions regarding estimated future cash flows, discount rates, long-term growth rates and market values to determine the estimated fair value of each reporting unit and indefinite-lived intangible asset. If these estimates or related assumptions change in the future, the Company may be required to record impairment charges. |
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Investments in Affiliates | Investments in Affiliates. The Company uses the equity method of accounting for its investments in and earnings or losses of affiliates that it does not control, but over which it exerts significant influence. The Company considers whether the fair values of any of its equity method investments have declined below their carrying values whenever adverse events or changes in circumstances indicate that recorded values may not be recoverable. If the Company considered any such decline to be other than temporary (based on various factors, including historical financial results, product development activities and the overall health of the affiliate’s industry), a write-down would be recorded to estimated fair value. |
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Cost Method Investments | Cost Method Investments. The Company uses the cost method of accounting for its minority investments in nonpublic companies where it does not have significant influence over the operations and management of the investee. Investments are recorded at the lower of cost or fair value as estimated by management. Charges recorded to write down cost method investments to their estimated fair value and gross realized gains or losses upon the sale of cost method investments are included in other income (expense), net, in the Company’s Consolidated Statements of Operations. Fair value estimates are based on a review of the investees’ product development activities, historical financial results and projected discounted cash flows. The Company includes cost method investments in deferred charges and other assets in the Company’s Consolidated Balance Sheets. |
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Revenue Recognition | Revenue Recognition. Revenue is recognized when persuasive evidence of an arrangement exists, the fees are fixed or determinable, the product or service has been delivered and collectability is reasonably assured. The Company considers the terms of each arrangement to determine the appropriate accounting treatment. Education revenues. Tuition revenue is recognized ratably over the period of instruction as services are delivered to students, net of any refunds, corporate discounts, scholarships and employee tuition discounts. At KTP, Professional (U.S.), and International divisions, estimates of average student course length are developed for each course, and these estimates are evaluated on an ongoing basis and adjusted as necessary. Online access revenue is recognized ratably over the period of access. Course material revenue is recognized over the same period as the tuition or online access, if related, or when the products are delivered, if not related. Other revenues, such as student support services, are recognized when the services are provided. KHE, through the Kaplan Commitment program, provides first-time undergraduate students with a risk-free trial period. Under the program, KHE monitors academic progress and conducts assessments to help determine whether students are likely to be successful in their chosen course of study. Students who withdraw or are subject to dismissal during the risk-free trial period do not incur any significant financial obligation. The Company does not recognize revenues related to coursework until the students complete the risk-free period and decide to continue with their studies, at which time the fees become fixed or determinable. KHE’s refund policy may permit students who do not complete a course to be eligible for a refund for the portion of the course they did not attend. The amount of the refund differs by school, program and state, as some states require different policies. Refunds generally result in a reduction in deferred revenue during the period that a student drops or withdraws from a class because the associated tuition revenue is recognized daily over the period of instruction as the services are delivered. Television broadcasting revenues. Advertising revenues are recognized, net of agency commissions, when the underlying advertisement is broadcast. Retransmission revenues are recognized over the term of the agreement based on monthly subscriber counts and contractual rates. Revenue presentation. The determination of whether revenue should be reported on a gross or net basis is based on an assessment of whether the Company acts as a principal or an agent in the transaction. In certain cases, the Company is considered the agent, and the Company records revenue equal to the net amount retained when the fee is earned. In these cases, costs incurred with third-party suppliers are excluded from the Company’s revenue. The Company assesses whether it or the third-party supplier is the primary obligor and evaluates the terms of its customer arrangements as part of this assessment. In addition, the Company considers other key indicators such as latitude in establishing price, inventory risk, nature of services performed, discretion in supplier selection and credit risk. SocialCode LLC (SocialCode), a wholly owned subsidiary, is a marketing and insights company that manages digital advertising for leading brands on digital media platforms like Facebook, Twitter, Instagram, Snapchat, Pinterest and YouTube. Donald E. Graham, the Chairman of the Company’s Board, was a member of the Board of Directors of Facebook, Inc. through June 10, 2015. SocialCode’s revenues are reported on a net basis; therefore, the Company’s Statements of Operations exclude the media acquisition costs incurred related to the relevant advertising platforms. Deferred revenue. Amounts received from customers in advance of revenue recognition are deferred as liabilities. Deferred revenue to be earned after one year is included in other noncurrent liabilities in the Company’s Consolidated Balance Sheets. |
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Leases | Leases. The Company leases substantially all of its educational facilities and enters into various other lease agreements in conducting its business. At the inception of each lease, the Company evaluates the lease agreement to determine whether the lease is an operating or capital lease. Additionally, many of the Company’s lease agreements contain renewal options, tenant improvement allowances, rent holidays and/or rent escalation clauses. When such items are included in a lease agreement, the Company records a deferred rent asset or liability in the Consolidated Financial Statements and records these items in rent expense evenly over the terms of the lease. The Company is also required to make additional payments under operating lease terms for taxes, insurance and other operating expenses incurred during the operating lease period; such items are expensed as incurred. Rental deposits are included as other assets in the Company’s Consolidated Balance Sheets for lease agreements that require payments in advance or deposits held for security that are refundable, less any damages, at the end of the respective lease. |
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Pensions and Other Postretirement Benefits | Pensions and Other Postretirement Benefits. The Company maintains various pension and incentive savings plans. Most of the Company’s employees are covered by these plans. The Company also provides healthcare and life insurance benefits to certain retired employees. These employees become eligible for benefits after meeting age and service requirements. The Company recognizes the overfunded or underfunded status of a defined benefit postretirement plan as an asset or liability in its Consolidated Balance Sheets and recognizes changes in that funded status in the year in which the changes occur through comprehensive income. The Company measures changes in the funded status of its plans using the projected unit credit method and several actuarial assumptions, the most significant of which are the discount rate, the expected return on plan assets and rate of compensation increase. The Company uses a measurement date of December 31 for its pension and other postretirement benefit plans. |
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Self-Insurance | Self-Insurance. The Company uses a combination of insurance and self-insurance for a number of risks, including claims related to employee healthcare and dental care, disability benefits, workers’ compensation, general liability, property damage and business interruption. Liabilities associated with these plans are estimated based on, among other things, the Company’s historical claims experience, severity factors and other actuarial assumptions. The expected loss accruals are based on estimates, and, while the Company believes that the amounts accrued are adequate, the ultimate loss may differ from the amounts provided. |
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Income Taxes | Income Taxes. The Company accounts for income taxes under the asset and liability method, which requires the recognition of deferred tax assets and liabilities for the expected future tax consequences of events that have been included in the financial statements. Under this method, deferred tax assets and liabilities are determined based on the differences between the financial statements and tax basis of assets and liabilities using enacted tax rates in effect for the year in which the differences are expected to reverse. The effect of a change in tax rates on deferred tax assets and liabilities is recognized in income in the period that includes the enactment date. The Company records net deferred tax assets to the extent that it believes these assets will more likely than not be realized. In making such determination, the Company considers all available positive and negative evidence, including future reversals of existing taxable temporary differences, projected future taxable income, tax planning strategies and recent financial operations; this evaluation is made on an ongoing basis. In the event the Company were to determine that it was able to realize net deferred income tax assets in the future in excess of their net recorded amount, the Company would record an adjustment to the valuation allowance, which would reduce the provision for income taxes. The Company recognizes a tax benefit from an uncertain tax position when it is more likely than not that the position will be sustained upon examination, including resolutions of any related appeals or litigation processes, based on the technical merits. The Company records a liability for the difference between the benefit recognized and measured for financial statement purposes and the tax position taken or expected to be taken on the Company’s tax return. Changes in the estimate are recorded in the period in which such determination is made. |
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Foreign Currency Translation | Foreign Currency Translation. Income and expense accounts of the Company’s non-United States operations where the local currency is the functional currency are translated into United States (U.S.) dollars using the current rate method, whereby operating results are converted at the average rate of exchange for the period, and assets and liabilities are converted at the closing rates on the period end date. Gains and losses on translation of these accounts are accumulated and reported as a separate component of equity and other comprehensive income. Gains and losses on foreign currency transactions, including foreign currency denominated intercompany loans on entities with a functional currency in U.S. dollars, are recognized in the Consolidated Statements of Operations. |
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Equity-Based Compensation | Equity-Based Compensation. The Company measures compensation expense for awards settled in shares based on the grant date fair value of the award. The Company measures compensation expense for awards settled in cash, or that may be settled in cash, based on the fair value at each reporting date. The Company recognizes the expense over the requisite service period, which is generally the vesting period of the award. |
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Earnings Per Share | Earnings Per Share. Basic earnings per share is calculated under the two-class method. The Company treats restricted stock as a participating security due to its nonforfeitable right to dividends. Under the two-class method, the Company allocates to the participating securities their portion of dividends declared and undistributed earnings to the extent the participating securities may share in the earnings as if all earnings for the period had been distributed. Basic earnings per share is calculated by dividing the income available to common stockholders by the weighted average number of common shares outstanding during the period. Diluted earnings per share is calculated similarly except that the weighted average number of common shares outstanding during the period includes the dilutive effect of the assumed exercise of options and restricted stock issuable under the Company’s stock plans. The dilutive effect of potentially dilutive securities is reflected in diluted earnings per share by application of the treasury stock method. |
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Mandatorily Redeemable Noncontrolling Interest | Mandatorily Redeemable Noncontrolling Interest. The Company’s mandatorily redeemable noncontrolling interest represents the noncontrolling interest in Graham Healthcare Group (GHG) which is 90% owned. The minority shareholders have an option to put their shares to the Company starting in 2020 and are required to put a percentage of their shares in 2022 and 2024, with the remaining shares required to be put by the minority shareholders in 2026. Since the noncontrolling interest is mandatorily redeemable by 2026, it is reported as a noncurrent liability at December 31, 2017, in the Consolidated Balance Sheets. The Company presents this liability at fair value, which is computed annually as the current redemption value. Changes in the redemption value are recorded as interest expense or income in the Company’s Consolidated Statements of Operations. |
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Redeemable Noncontrolling Interest | Redeemable Noncontrolling Interest. The Company’s redeemable noncontrolling interest represents the noncontrolling interest in Hoover, which is 97.72% owned. The minority shareholders have an option to put some of their shares to the Company starting in 2019 and the remaining shares starting in 2021. The Company has an option to buy the shares of minority shareholders starting in 2027. The Company presents the redeemable noncontrolling interest at the greater of its carrying amount or redemption value at the end of each reporting period in the Consolidated Balance Sheets. Changes in the redemption value are recorded to capital in excess of par value in the Company’s Consolidated Balance Sheets. |
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Comprehensive Income | Comprehensive Income. Comprehensive income consists of net income, foreign currency translation adjustments, the change in unrealized gains (losses) on investments in marketable equity securities, net changes in cash flow hedge and pension and other postretirement plan adjustments. |
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Discontinued Operations | Discontinued Operations. A disposal of a component is reported as discontinued operations if the disposal represents a strategic shift that has or will have a major effect on the Company’s operations and financial results. The results of discontinued operations (as well as the gain or loss on the disposal) are aggregated and separately presented in the Company’s Consolidated Statements of Operations, net of income taxes. |
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Recently Adopted and Issued Accounting Pronouncemets | 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, full retrospective, requiring retrospective application of the new guidance with a restatement of prior years, or modified retrospective, requiring prospective application of the new guidance with disclosure of results under the old guidance in the first year of adoption. The Company will adopt the new guidance on January 1, 2018 using the modified retrospective approach, which requires a cumulative adjustment to retained earnings. Upon adoption of the new guidance, the Company will record a net increase to the opening balance of retained earnings of approximately $7 million to $12 million. This adjustment primarily results from a change to the Company’s current treatment of certain commissions paid to employees and agents at its education division. The Company currently expenses such commissions as incurred. Under the new guidance, the Company expects to capitalize certain commission costs as an incremental cost of obtaining a contract and subsequently amortize the cost as the tuition services are delivered to students. The Company has substantially completed its evaluation of the impact of adopting the new guidance, as well as its assessment of the need for any changes to the Company’s accounting policies and internal control structure. As a result, the Company will implement new processes and internal controls to enable the preparation of financial information on adoption. The Company is finalizing its evaluation of new disclosures required by the guidance to determine additional information that will need to be disclosed including the nature and timing of the Company’s performance obligations, deferred revenue contract liabilities, deferred contract cost assets, as well as significant judgments and practical expedients used by the Company in applying the new guidance. 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. Upon adoption in the first quarter of 2018, the Company will record a cumulative adjustment of $194.9 million to retained earnings on its Consolidated Balance Sheet related to unrealized gains of available-for-sale securities, net of tax, previously classified within accumulated other comprehensive income, and will recognize any changes in fair value in net income. In addition, the Company expects to elect the measurement alternative to measure cost method investments that do not have a readily determinable fair value at cost less impairment, adjusted by observable price changes with any fair value changes recognized in net income. 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 Consolidated Financial Statements; however, the recognition of right-of-use assets and lease liabilities is expected to have a material effect on its Consolidated Balance Sheet. 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. The Company adopted the new guidance as of January 1, 2017. As a result of adoption, the Company recognized a $5.9 million excess tax benefit as a discrete item in its tax provision related to the vesting of restricted stock awards in the first quarter of 2017. This tax benefit is classified as an operating activity on the Consolidated Statement of Cash Flows. Additionally, the Company elected to account for forfeitures of stock awards as they occur and not estimate a forfeiture rate. The Company does not expect the forfeiture rate election to have a material impact on its financial statements. In January 2017, the FASB issued new guidance which simplifies the subsequent measurement of goodwill. The new guidance eliminates Step 2 from the goodwill impairment test, which required entities to determine the implied fair value of goodwill as of the test date to measure a goodwill impairment charge. Instead, an entity should continue to test goodwill for impairment by comparing the fair value of a reporting unit with its carrying amount (Step 1), and an impairment charge will be recognized for the amount by which the carrying amount exceeds the reporting unit’s fair value. The guidance is effective for interim and fiscal years beginning after December 15, 2019, with early adoption permitted. The Company early adopted this guidance in the second quarter of 2017. In March 2017, the FASB issued new guidance that changes the presentation of net periodic pension cost and net periodic postretirement benefit cost for defined benefit plans. The guidance requires an issuer to disaggregate the service cost component of net periodic pension and postretirement benefit cost from other components. Under the new guidance, service cost will be included in the same line item(s) as other compensation costs arising from services rendered by employees during the period, while the other components will be recognized after income from operations. The guidance is effective for interim and fiscal years beginning after December 15, 2017. The guidance must be applied retrospectively; however, a practical expedient is available which permits an employer to use amounts previously disclosed in its pension and postretirement plans footnote for the prior comparative periods. The Company adopted the new standard in the first quarter of 2018. In combination with the presentation change to net periodic pension cost and net periodic postretirement benefit cost, the Company allocated its costs associated with fringe benefits between operating expenses and selling, general and administrative expenses. Previously, costs related to fringe benefits were generally classified as selling, general and administrative expenses. The amounts in the previously issued financial statements have been reclassified to conform to the reclassified presentation. The effect of these changes to the Consolidated Statement of Operations for 2017, 2016 and 2015 is as follows:
In February 2018, the FASB issued new guidance that allows an entity to elect to reclassify stranded tax effects resulting from the Tax Cuts and Jobs Act (the Tax Act) from accumulated other comprehensive income to retained earnings. If elected, the amount of the reclassification shall include the effect of the change in the U.S. federal corporate income tax rate on the gross deferred tax amount and related valuation allowances at the date of enactment of the Tax Act as well as other income tax effects of the Tax Act on items remaining in accumulated other comprehensive income. The guidance is effective for interim and fiscal years beginning after December 15, 2018, with early adoption permitted. The Company early adopted this guidance in the fourth quarter of 2017, and elected to reclassify the income tax effects of the Tax Act of $70.9 million from accumulated other comprehensive income to retained earnings. No other income tax effects related to the application of the Tax Act were reclassified. Other new pronouncements issued but not effective until after December 31, 2017, are not expected to have a material impact on the Company’s Consolidated Financial Statements. |
Summary of Significant Accounting Policies Summary of Significant Accounting Policies (Tables) |
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New Accounting Pronouncements or Change in Accounting Principle [Line Items] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Schedule of New Accounting Pronouncements and Changes in Accounting Principles [Table Text Block] |
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Acquisitions and Dispositions of Businesses (Tables) |
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Acquisitions And Dispositions [Abstract] | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Schedule of assets acquired and liabilities assumed | The aggregate purchase price of these acquisitions was allocated as follows, based on acquisition date fair values to the following assets and liabilities (excluding measurement period adjustments recorded in subsequent years):
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Acqusition Pro Forma Financial Information | The following unaudited pro forma financial information presents the Company’s results as if the current year acquisitions had occurred at the beginning of 2016. The unaudited pro forma information also includes the 2016 acquisitions as if they occurred at the beginning of 2015 and the 2015 acquisitions as if they had occurred at the beginning of 2014:
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Information related to a Disposal Group | The revenue and operating losses related to schools that were sold as part of the KHE Campuses sale are as follows:
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Discontinued Operations (Tables) |
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Income Statement, Balance Sheet and Additional Disclosures by Disposal Groups, Including Discontinued Operations [Line Items] | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Summarized Income (Loss) from Discontinued Operations, Net Of Tax | The summarized income from discontinued operations, net of tax, is presented below:
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Income Statement, Balance Sheet and Additional Disclosures by Disposal Groups, Including Discontinued Operations [Line Items] | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Summarized Income (Loss) from Discontinued Operations, Net Of Tax | On July 1, 2015, the Company divested the following assets and liabilities which net to $406.5 million, or $312.3 million net of cash retained by Cable ONE on the Distribution Date:
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Investments (Tables) |
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Investments [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Investments in Marketable Equity Securities | Investments in marketable equity securities consist of the following:
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Accounts Receivable, Accounts Payable and Accrued Liabilities (Tables) |
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Accounts Receivable Accounts Payable And Accrued Liabilities [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Schedule of Accounts Receivable | Accounts receivable consist of the following:
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Schedule of Changes in Allowance for Doubtful Accounts and Returns and Allowance for Advertising Rate Adjustments and Discounts | The changes in allowance for doubtful accounts was as follows:
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Schedule of Accounts Payable and Accrued Liabilities | Accounts payable and accrued liabilities consist of the following:
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Inventories and Contracts in Progress (Tables) |
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Inventories and Contracts in Progress [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Schedule of Inventories and Contracts in Progress [Table Text Block] | Inventories and contracts in progress consist of the following:
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Property, Plant and Equipment (Tables) |
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Property, Plant and Equipment | Property, plant and equipment consist of the following:
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Goodwill and Other Intangible Assets (Tables) |
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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:
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Income Taxes (Tables) |
12 Months Ended | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
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Dec. 31, 2017 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Schedule of Income From Continuing Operations Before Income Taxes, Domestic and Foreign | Income (loss) from continuing operations before income taxes consists of the following:
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Schedule of Provision for Income Taxes on Income From Continuing Operations | The (benefit from) provision for income taxes on income (loss) from continuing operations consists of the following:
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Schedule of Effective Income Tax Rate Reconciliation | The provision for income taxes on continuing operations differs from the amount of income tax determined by applying the U.S. Federal statutory rate of 35% to the income (loss) from continuing operations before taxes as a result of the following:
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Schedule of Deferred Tax Assets and Liabilities | Deferred income taxes consist of the following:
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Schedule of Changes in Deferred Tax Valuation Allowance | Deferred tax valuation allowances and changes in deferred tax valuation allowances were as follows:
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Schedule of Unrecognized Tax Benefits Roll Forward | The following summarizes the Company’s unrecognized tax benefits, excluding interest and penalties, for the respective periods:
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State [Member] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Schedule of Income Tax Loss Carryforwards | The Company has $635.1 million of state income tax net operating loss carryforwards available to offset future state taxable income. State income tax loss carryforwards, if unutilized, will start to expire approximately as follows:
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U.S. Federal [Member] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Schedule of Income Tax Loss Carryforwards | The Company has $13.5 million of U.S. Federal income tax loss carryforwards obtained as a result of prior stock acquisitions. U.S. Federal income tax loss carryforwards are expected to be fully utilized as follows:
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Debt (Tables) |
12 Months Ended | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
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Dec. 31, 2017 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Debt Disclosure [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Components of Debt | The Company’s borrowings consist of the following:
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Fair Value Measurements (Tables) |
12 Months Ended | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
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Dec. 31, 2017 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Fair Value Disclosures [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Summary 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:
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Capital Stock, Stock Awards and Stock Options (Tables) |
12 Months Ended | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
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Dec. 31, 2017 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Capital Stock, Stock Awards, and Stock Options [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Activity Related to Stock Awards | Activity related to stock awards under the 2012 incentive compensation plan for the year ended December 31, 2017 was as follows:
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Activity Related to Stock Options | Activity related to options outstanding for the year ended December 31, 2017 was as follows:
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Information related to Stock Options Outstanding and Exercisable | Information related to stock options outstanding and exercisable at December 31, 2017, is as follows:
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Fair Value of Options Assumptions | The fair value of options at date of grant was estimated using the Black-Scholes method utilizing the following assumptions:
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Summary of Earnings Per Share from Continuing Operations, Basic and Diluted | The following reflects the Company’s income 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 [Table Text Block] | 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:
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Pension and Postretirement Plans (Tables) |
12 Months Ended | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
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Dec. 31, 2017 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Defined Benefit Plans [Member] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Defined Benefit Plan Disclosure [Line Items] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Schedule of Amounts Recognized in Balance Sheet | The amounts recognized in the Company’s Consolidated Balance Sheets for its defined benefit pension plans are as follows:
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Schedule of Estimated Benefit Payments | At December 31, 2017, future estimated benefit payments, excluding charges for early retirement programs, are as follows:
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Schedule of Amounts Recognized in Accumulated Other Comprehensive Income (Loss) | Accumulated other comprehensive income (AOCI) includes the following components of unrecognized net periodic cost for the defined benefit plans:
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Schedule of Expected Net Periodic Cost to be Recognized in Accumulated Other Comprehensive Income (Loss) | During 2018, the Company expects to recognize the following amortization components of net periodic cost for the defined benefit plans:
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Defined Benefit Plans [Member] | Periodic Cost [Member] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Defined Benefit Plan Disclosure [Line Items] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Schedule of Assumptions Used | The costs for the Company’s defined benefit pension plans are actuarially determined. Below are the key assumptions utilized to determine periodic cost:
____________
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Defined Benefit Plans [Member] | Benefit Obligation [Member] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Defined Benefit Plan Disclosure [Line Items] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Schedule of Assumptions Used | Key assumptions utilized for determining the benefit obligation are as follows:
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Pension Plans [Member] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Defined Benefit Plan Disclosure [Line Items] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Schedule of Obligation, Asset and Funding Information | The following table sets forth obligation, asset and funding information for the Company’s defined benefit pension plans:
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Schedule of Net (Benefit) Costs | The total (benefit) cost arising from the Company’s defined benefit pension plans, including the portion included in discontinued operations, consists of the following components:
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Allocation of the Assets of the Company's Pension Plans | The assets of the Company’s pension plans were allocated as follows:
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Fair Value, Assets Measured on Recurring Basis | The Company’s pension plan assets measured at fair value on a recurring basis were as follows:
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Schedule of Effect of Significant Unobservable Inputs, Changes in Plan Assets | The following table provides a reconciliation of changes in pension assets measured at fair value on a recurring basis, using Level 3 inputs:
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Supplemental Executive Retirement Plan (SERP) [Member] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Defined Benefit Plan Disclosure [Line Items] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Schedule of Obligation, Asset and Funding Information |
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Schedule of Net (Benefit) Costs |
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Other Postretirement Plans [Member] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Defined Benefit Plan Disclosure [Line Items] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Schedule of Obligation, Asset and Funding Information | The following table sets forth obligation, asset and funding information for the Company’s other postretirement plans:
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Schedule of Amounts Recognized in Balance Sheet | The amounts recognized in the Company’s Consolidated Balance Sheets for its other postretirement plans are as follows:
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Schedule of Estimated Benefit Payments | At December 31, 2017, future estimated benefit payments are as follows:
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Schedule of Net (Benefit) Costs | The total (benefit) cost arising from the Company’s other postretirement plans consists of the following components:
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Schedule of Amounts Recognized in Accumulated Other Comprehensive Income (Loss) | AOCI included the following components of unrecognized net periodic benefit for the postretirement plans:
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Schedule of Expected Net Periodic Cost to be Recognized in Accumulated Other Comprehensive Income (Loss) | During 2018, the Company expects to recognize the following amortization components of net periodic cost for the other postretirement plans:
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Effect of One-Percentage-Point Change in Assumed Health Care Cost Trend Rates | A change of one percentage point in the assumed healthcare cost trend rates would have the following effects:
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Other Non-Operating (Expense) Income (Tables) |
12 Months Ended | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
Dec. 31, 2017 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Other Nonoperating Income (Expense) [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Summary of Other Non-Operating Income (Expense) | A summary of non-operating income (expense) is as follows:
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Accumulated Other Comprehensive Income (Loss) (Tables) |
12 Months Ended | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
Dec. 31, 2017 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Accumulated Other Comprehensive Income (Loss), Net of Tax [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Summary of Other Comprehensive Income (Loss) | The other comprehensive income (loss) consists of the following components:
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Summary of Changes in Accumulated Other Comprehensive Income (Loss) | 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 Income (Loss) | The amounts and line items of reclassifications out of Accumulated Other Comprehensive Income are as follows:
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Leases and Other Commitments (Tables) |
12 Months Ended | ||||||||||||||||||||||||||||||||||||||||
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Dec. 31, 2017 | |||||||||||||||||||||||||||||||||||||||||
Leases And Other Commitments [Abstract] | |||||||||||||||||||||||||||||||||||||||||
Schedule of Future Minimum Rental Payments for Operating Leases | At December 31, 2017, future minimum rental payments under noncancelable operating leases approximate the following:
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Business Segments (Tables) |
12 Months Ended | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
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Dec. 31, 2017 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Segment Reporting Information [Line Items] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Summary of Segment Reporting Information, by Operating Segment | Company information broken down by operating segment and education division:
Asset information for the Company’s business segments is as follows:
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Education [Member] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Segment Reporting Information [Line Items] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Schedule of Restructuring Costs | Across all Kaplan businesses, restructuring costs of $9.1 million, $11.9 million and $40.6 million were recorded in 2017, 2016 and 2015, respectively, as follows:
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Summary of Segment Reporting Information, by Operating Segment | The Company’s education division comprises the following operating segments:
In the third quarter of 2015, a favorable $3.0 million out of period revenue adjustment was included at the test preparation segment that related to prior periods from 2011 through the second quarter of 2015. With respect to this error, the Company has concluded that it was not material to the Company’s financial position or results of operations for 2015 and prior years and the related interim periods, based on its consideration of quantitative and qualitative factors. Asset information for the Company’s education division is as follows:
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Summary of Quarterly Operating Results and Comprehensive Income (Unaudited) (Tables) |
12 Months Ended | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
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Dec. 31, 2017 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Quarterly Financial Information Disclosure [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Schedule of Quarterly Results of Operations and Comprehensive Income | Quarterly results of operations and comprehensive income for the year ended December 31, 2017, is as follows:
The sum of the four quarters may not necessarily be equal to the annual amounts reported in the Consolidated Statements of Operations due to rounding. Certain amounts were reclassified from other revenue to advertising revenue (see Note 2). In the fourth quarter of 2017, an unfavorable $2.8 million net out of period expense adjustment was included that related to prior periods from the third quarter of 2016 through the third quarter of 2017. With respect to this error, the Company has concluded that it was not material to the Company’s financial position or results of operations for 2017 and 2016 and related interim periods, based on its consideration of quantitative and qualitative factors. Quarterly results of operations and comprehensive income for the year ended December 31, 2016, is as follows:
The sum of the four quarters may not necessarily be equal to the annual amounts reported in the Consolidated Statements of Operations due to rounding. Certain amounts were reclassified from other revenue to advertising revenue (see Note 2). |
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Schedule Of Quarterly Impact From Certain Items | Quarterly impact from certain items in 2017 and 2016 (after-tax and diluted EPS amounts):
|
Organization and Nature of Operations (Narrative) (Details) |
Dec. 31, 2017
TelevisionStation
Category
|
---|---|
Education [Member] | |
Product Information [Line Items] | |
Number of education business categories | Category | 4 |
Television Broadcasting [Member] | |
Product Information [Line Items] | |
Number of television broadcast stations owned | 7 |
JacksonvilleFL [Member] | Television Broadcasting [Member] | |
Product Information [Line Items] | |
Number of television broadcast stations owned | 2 |
Acquisitions and Dispositions of Businesses (Pro Forma Financials) (Details 2) - USD ($) $ in Thousands |
12 Months Ended | ||
---|---|---|---|
Dec. 31, 2017 |
Dec. 31, 2016 |
Dec. 31, 2015 |
|
Acquisitions And Dispositions [Abstract] | |||
Pro Forma Operating revenues | $ 2,655,601 | $ 2,750,416 | $ 2,804,663 |
Pro Forma Net income (loss) | $ 311,274 | $ 175,021 | $ (84,209) |
Acquisitions and Dispositions of Businesses (Significant Component) (Details 3) - KHE Campuses [Member] - Higher Education [Member] - Education [Member] $ in Thousands |
12 Months Ended |
---|---|
Dec. 31, 2015
USD ($)
| |
Income Statement, Balance Sheet and Additional Disclosures by Disposal Groups, Including Discontinued Operations [Line Items] | |
Disposal Group, Not Discontinued Operation, Revenue | $ 167,093 |
Disposal Group, Not Discontinued Operation, Operating Loss | $ (6,264) |
Discontinued Operations (Summarized Income (Loss) from Discontinued Operations, Net Of Tax) (Details 3) - USD ($) $ in Thousands |
12 Months Ended | ||
---|---|---|---|
Dec. 31, 2017 |
Dec. 31, 2016 |
Dec. 31, 2015 |
|
Income Statement, Balance Sheet and Additional Disclosures by Disposal Groups, Including Discontinued Operations [Line Items] | |||
Operating revenues | $ 397,404 | ||
Operating costs and expenses | (325,379) | ||
Operating income | 72,025 | ||
Non-operating expense | (1,288) | ||
Income from discontinued operations | 70,737 | ||
Provision for income taxes | 27,783 | ||
Net Income from Discontinued Operations | 42,954 | ||
Loss on disposition of discontinued operations | (732) | ||
Provision for income taxes on disposition of discontinued operations | 52 | ||
Income from Discontinued Operations, Net of Tax | $ 0 | $ 0 | $ 42,170 |
Investments (Investments in Marketable Equity Securities) (Details 1) - USD ($) $ in Thousands |
Dec. 31, 2017 |
Dec. 31, 2016 |
---|---|---|
Investments [Abstract] | ||
Total cost | $ 269,343 | $ 269,343 |
Gross unrealized gains | 266,972 | 154,886 |
Total Fair Value | $ 536,315 | $ 424,229 |
Accounts Receivable, Accounts Payable and Accrued Liabilities (Narrative) (Details) - USD ($) $ in Millions |
Dec. 31, 2017 |
Dec. 31, 2016 |
---|---|---|
Accounts Receivable Accounts Payable And Accrued Liabilities [Abstract] | ||
Cash overdrafts | $ 6.0 | $ 15.5 |
Accounts Receivable, Accounts Payable and Accrued Liabilities (Details 1) - USD ($) $ in Thousands |
12 Months Ended | ||
---|---|---|---|
Dec. 31, 2017 |
Dec. 31, 2016 |
Dec. 31, 2015 |
|
Accounts Receivable, Net [Abstract] | |||
Trade accounts receivable, less doubtful accounts and allowances | $ 600,215 | $ 591,854 | |
Other receivables | 20,104 | 23,247 | |
Accounts receivable, net | 620,319 | 615,101 | |
Allowance for Doubtful Accounts Receivable | 22,975 | 26,723 | |
Accounts Payable, Current [Abstract] | |||
Accounts payable and accrued liabilities | 385,927 | 352,356 | |
Accrued compensation and related benefits | 140,396 | 148,370 | |
Total accounts payable and accrued liabilities | 526,323 | 500,726 | |
Allowance for doubtful accounts[Member] | |||
Movement in Valuation Allowances and Reserves [Roll Forward] | |||
Balance at Begining of Period | 26,723 | 27,854 | $ 32,598 |
Additions - Charged to Costs and Expenses | 33,830 | 29,718 | 39,982 |
Deductions | (37,578) | (30,849) | (44,726) |
Balance at End of Period | $ 22,975 | $ 26,723 | $ 27,854 |
Inventories and Contracts in Progress (Details) - USD ($) $ in Thousands |
Dec. 31, 2017 |
Dec. 31, 2016 |
---|---|---|
Inventories and Contracts in Progress [Abstract] | ||
Raw materials | $ 30,429 | $ 20,646 |
Work-in-process | 10,258 | 5,368 |
Finished goods | 18,851 | 8,490 |
Contracts in Progress | 1,074 | 314 |
Inventories and contracts in progress | $ 60,612 | $ 34,818 |
Property, Plant and Equipment (Narrative) (Details) - USD ($) $ in Thousands |
3 Months Ended | 12 Months Ended | ||||||||||
---|---|---|---|---|---|---|---|---|---|---|---|---|
Dec. 31, 2017 |
Sep. 30, 2017 |
Jun. 30, 2017 |
Mar. 31, 2017 |
Dec. 31, 2016 |
Sep. 30, 2016 |
Jun. 30, 2016 |
Mar. 31, 2016 |
Jun. 30, 2015 |
Dec. 31, 2017 |
Dec. 31, 2016 |
Dec. 31, 2015 |
|
Property, Plant and Equipment [Line Items] | ||||||||||||
Depreciation of property, plant and equipment | $ 15,984 | $ 16,002 | $ 15,871 | $ 14,652 | $ 15,717 | $ 16,097 | $ 16,045 | $ 16,761 | $ 62,509 | $ 64,620 | $ 77,906 | |
Interest Costs Capitalized | $ 300 | $ 400 | ||||||||||
Other Businesses [Member] | Forney [Member] | ||||||||||||
Property, Plant and Equipment [Line Items] | ||||||||||||
Property plant and equipment impairment charges | $ 600 | |||||||||||
Other Businesses [Member] | Graham Healthcare Group [Member] | ||||||||||||
Property, Plant and Equipment [Line Items] | ||||||||||||
Property plant and equipment impairment charges | $ 400 | |||||||||||
Higher Education [Member] | Education [Member] | ||||||||||||
Property, Plant and Equipment [Line Items] | ||||||||||||
Property plant and equipment impairment charges | $ 6,900 |
Property, Plant and Equipment (Details) - USD ($) $ in Thousands |
Dec. 31, 2017 |
Dec. 31, 2016 |
---|---|---|
Property, Plant and Equipment [Abstract] | ||
Land | $ 16,190 | $ 10,410 |
Buildings | 107,932 | 88,256 |
Machinery, equipment and fixtures | 387,914 | 433,652 |
Leasehold improvements | 215,445 | 209,612 |
Construction in progress | 16,649 | 36,728 |
Property, plant and equipment, gross | 744,130 | 778,658 |
Less accumulated depreciation | (484,772) | (544,994) |
Property, plant and equipment, net | $ 259,358 | $ 233,664 |
Goodwill and Other Intangible Assets Goodwill and Other Intangible Assets (Goodwill) (Narrative) (Details) $ in Thousands |
3 Months Ended | 12 Months Ended | ||||||||||||
---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
Mar. 31, 2018
Segment
|
Dec. 31, 2017
USD ($)
|
Sep. 30, 2017
USD ($)
|
Jun. 30, 2017
USD ($)
|
Mar. 31, 2017
USD ($)
|
Dec. 31, 2016
USD ($)
business
|
Sep. 30, 2016
USD ($)
|
Jun. 30, 2016
USD ($)
|
Mar. 31, 2016
USD ($)
|
Dec. 31, 2015
USD ($)
|
Sep. 30, 2015
USD ($)
|
Dec. 31, 2017
USD ($)
Segment
|
Dec. 31, 2016
USD ($)
|
Dec. 31, 2015
USD ($)
|
|
Goodwill [Line Items] | ||||||||||||||
Number of reportable segments | Segment | 6 | |||||||||||||
Asset Impairment Charges | $ 78 | $ 312 | $ 9,224 | $ 0 | $ 9,614 | $ 1,603 | $ 259,700 | |||||||
Goodwill, Impairment Loss | $ 1,603 | $ 0 | $ 0 | $ 0 | 7,616 | 1,603 | ||||||||
Other Businesses [Member] | ||||||||||||||
Goodwill [Line Items] | ||||||||||||||
Number of businesses recorded impairment of goodwill | business | 1 | |||||||||||||
Goodwill, Impairment Loss | $ 1,600 | $ 2,800 | 7,616 | 1,603 | ||||||||||
Education [Member] | ||||||||||||||
Goodwill [Line Items] | ||||||||||||||
Goodwill, Impairment Loss | $ 0 | $ 0 | ||||||||||||
Forney [Member] | Other Businesses [Member] | ||||||||||||||
Goodwill [Line Items] | ||||||||||||||
Goodwill and Intangible Asset Impairment | $ 8,600 | |||||||||||||
Higher Education [Member] | Education [Member] | ||||||||||||||
Goodwill [Line Items] | ||||||||||||||
Goodwill, Impairment Loss | $ 248,600 | |||||||||||||
Subsequent Event [Member] | ||||||||||||||
Goodwill [Line Items] | ||||||||||||||
Number of reportable segments | Segment | 6 |
Income Taxes (Narrative) (Details) - USD ($) |
3 Months Ended | 12 Months Ended | |||||
---|---|---|---|---|---|---|---|
Dec. 31, 2017 |
Mar. 31, 2017 |
Sep. 30, 2016 |
Dec. 31, 2018 |
Dec. 31, 2017 |
Dec. 31, 2016 |
Dec. 31, 2015 |
|
Income Taxes [Line Items] | |||||||
Federal statutory income tax rate | 35.00% | 35.00% | |||||
Write-off of deferred taxes related to intercompany loans | $ 0 | $ 10,965,000 | $ 0 | ||||
Deferred income tax expense (benefit) | (146,452,000) | 10,070,000 | 11,929,000 | ||||
Tax expenses with respect to losses from discontinued operations | 27,800,000 | ||||||
Deferred state income tax asset | $ 35,434,000 | 35,434,000 | 23,178,000 | ||||
Deferred tax assets with respect to U.S. Federal income tax loss carryforwards | 2,857,000 | 2,857,000 | 6,212,000 | ||||
Effective Income Tax Rate Reconciliation, Share-based Compensation, Excess Tax Benefit, Amount | $ 5,900,000 | (6,023,000) | 0 | 0 | |||
Deferred tax assets with respect to non U.S. income tax loss carryforwards | 18,797,000 | 18,797,000 | 19,246,000 | ||||
Non-U.S.deferred tax asset related to capital loss carryforwards | 2,336,000 | 2,336,000 | 1,929,000 | ||||
Valuation Allowance, Amount | 48,742,000 | 48,742,000 | 41,319,000 | ||||
Deferred income tax liabilities related to undistributed earnings of investments in non-U.S. subsidiaries | 1,606,000 | 1,606,000 | 0 | ||||
Decrease in Unrecognized Tax Benefits is Reasonably Possible | 15,700,000 | 15,700,000 | |||||
Interest accrued related to unrecognized tax benefits | 1,100,000 | 1,100,000 | |||||
Penalties accrued related to unrecognized tax benefits | 0 | 0 | |||||
Reduction In Federal Tax Rate [Member] | |||||||
Income Taxes [Line Items] | |||||||
Income Tax Expense (Benefit), Adjustment of Deferred Tax (Asset) Liability | 153,300,000 | ||||||
Change in Tax on non-US Subsidiary Earnings [Member] | |||||||
Income Taxes [Line Items] | |||||||
Income Tax Expense (Benefit), Adjustment of Deferred Tax (Asset) Liability | 28,300,000 | ||||||
Adjustment [Member] | |||||||
Income Taxes [Line Items] | |||||||
Deferred income tax expense (benefit) | (5,600,000) | ||||||
State [Member] | |||||||
Income Taxes [Line Items] | |||||||
Income tax loss carryforwards to expire | 635,100,000 | 635,100,000 | |||||
Deferred state income tax asset | 35,300,000 | 35,300,000 | |||||
Valuation Allowance, Amount | 38,000,000 | 38,000,000 | |||||
Valuation allowance related to operating loss carryforwards | 33,300,000 | 33,300,000 | |||||
Valuation allowance released | (946,000) | 3,196,000 | (3,285,000) | ||||
State [Member] | 2018 [Member] | |||||||
Income Taxes [Line Items] | |||||||
Unrecognized tax benefit that would impact the effective tax rate | 3,500,000 | 3,500,000 | |||||
State [Member] | After 2018 [Member] | |||||||
Income Taxes [Line Items] | |||||||
Unrecognized tax benefit that would impact the effective tax rate | 1,700,000 | 1,700,000 | |||||
State [Member] | Forecast [Member] | Education [Member] | |||||||
Income Taxes [Line Items] | |||||||
Valuation Allowance, Deferred Tax Asset, Increase (Decrease), Amount | $ 22,700,000 | ||||||
U.S. Federal [Member] | |||||||
Income Taxes [Line Items] | |||||||
Income tax loss carryforwards obtained as a result of prior stock acqusitions | 13,500,000 | 13,500,000 | |||||
Deferred tax assets with respect to U.S. Federal income tax loss carryforwards | 2,900,000 | 2,900,000 | |||||
Foreign tax credit carryforwards | 2,500,000 | 2,500,000 | |||||
Deferred tax assets with respect to U.S. Federal foreign tax credit carryforwards | 2,522,000 | 2,522,000 | 1,921,000 | ||||
U.S. Federal [Member] | 2018 [Member] | |||||||
Income Taxes [Line Items] | |||||||
Federal tax impact of unrecognized tax benefits that would impact the effective tax rate | 700,000 | 700,000 | |||||
U.S. Federal [Member] | After 2018 [Member] | |||||||
Income Taxes [Line Items] | |||||||
Federal tax impact of unrecognized tax benefits that would impact the effective tax rate | 400,000 | 400,000 | |||||
U.S. Federal [Member] | Tax Credit Carryforwards, Foreign [Member] | |||||||
Income Taxes [Line Items] | |||||||
Valuation Allowance, Amount | 2,500,000 | 2,500,000 | |||||
U.S. Federal [Member] | Expire in 2024 [Member] | |||||||
Income Taxes [Line Items] | |||||||
Foreign tax credit carryforwards | 700,000 | 700,000 | |||||
U.S. Federal [Member] | Expire in 2025 [Member] | |||||||
Income Taxes [Line Items] | |||||||
Foreign tax credit carryforwards | 700,000 | 700,000 | |||||
U.S. Federal [Member] | Expire in 2026 [Member] | |||||||
Income Taxes [Line Items] | |||||||
Foreign tax credit carryforwards | 700,000 | 700,000 | |||||
U.S. Federal [Member] | Expire in 2027 [Member] | |||||||
Income Taxes [Line Items] | |||||||
Foreign tax credit carryforwards | 400,000 | 400,000 | |||||
non-U.S. [Member] | |||||||
Income Taxes [Line Items] | |||||||
Tax loss carryforwards as a result of operating losses and prior stock acquisitions | 68,400,000 | 68,400,000 | |||||
Deferred tax assets with respect to non U.S. income tax loss carryforwards | 18,800,000 | 18,800,000 | |||||
Valuation allowance against the deferred tax assets recorded for the tax losses carryforward | 5,600,000 | 5,600,000 | |||||
Tax loss carryforwards from operating losses and prior stock acquisitions that can be carried forward indefinitely | 57,400,000 | 57,400,000 | |||||
Non-U.S.deferred tax asset related to capital loss carryforwards | 2,300,000 | 2,300,000 | |||||
Valuation Allowance, Amount | 8,200,000 | 8,200,000 | |||||
Valuation allowance released | (1,935,000) | (12,688,000) | $ 431,000 | ||||
non-U.S. [Member] | Other [Member] | |||||||
Income Taxes [Line Items] | |||||||
Valuation Allowance, Amount | 300,000 | 300,000 | |||||
non-U.S. [Member] | Through 2022 [Member] | |||||||
Income Taxes [Line Items] | |||||||
Tax loss carryforwards subject to expiration | 7,000,000 | 7,000,000 | |||||
non-U.S. [Member] | After 2022 [Member] | |||||||
Income Taxes [Line Items] | |||||||
Tax loss carryforwards subject to expiration | 3,900,000 | 3,900,000 | |||||
U.S. Federal and State [Member] | |||||||
Income Taxes [Line Items] | |||||||
Deferred income tax liabilities related to undistributed earnings of investments in non-U.S. subsidiaries | 23,800,000 | ||||||
Excess of book value over tax basis of investment | 113,200,000 | 113,200,000 | $ 103,300,000 | ||||
Australian Taxation Office [Member] | |||||||
Income Taxes [Line Items] | |||||||
Valuation allowance released | $ 19,300,000 | ||||||
Capital loss carryforwards to 2013 tax year [Member] | Internal Revenue Service (IRS) [Member] | |||||||
Income Taxes [Line Items] | |||||||
Refund from Settlement with Taxing Authority | 9,700,000 | 9,700,000 | |||||
Capital loss carryforward [Member] | non-U.S. [Member] | |||||||
Income Taxes [Line Items] | |||||||
Carryforward amount | 7,800,000 | 7,800,000 | |||||
Valuation Allowance, Amount | $ 2,300,000 | $ 2,300,000 |
Income Taxes (Income from Operations) (Details 1) - USD ($) $ in Thousands |
3 Months Ended | 12 Months Ended | |||||||||
---|---|---|---|---|---|---|---|---|---|---|---|
Dec. 31, 2017 |
Sep. 30, 2017 |
Jun. 30, 2017 |
Mar. 31, 2017 |
Dec. 31, 2016 |
Sep. 30, 2016 |
Jun. 30, 2016 |
Mar. 31, 2016 |
Dec. 31, 2017 |
Dec. 31, 2016 |
Dec. 31, 2015 |
|
Income (Loss) from Continuing Operations before Income Taxes [Abstract] | |||||||||||
U.S. | $ 134,276 | $ 227,457 | $ (142,705) | ||||||||
Non-U.S. | 48,513 | 23,201 | 21,815 | ||||||||
Income (Loss) from Continuing Operations Before Income Taxes | $ 54,860 | $ 38,244 | $ 65,899 | $ 23,786 | $ 64,118 | $ 40,926 | $ 84,999 | $ 60,615 | $ 182,789 | $ 250,658 | $ (120,890) |
Income Taxes (Provision for Income Taxes Components) (Details 2) - USD ($) $ in Thousands |
3 Months Ended | 12 Months Ended | |||||||||
---|---|---|---|---|---|---|---|---|---|---|---|
Dec. 31, 2017 |
Sep. 30, 2017 |
Jun. 30, 2017 |
Mar. 31, 2017 |
Dec. 31, 2016 |
Sep. 30, 2016 |
Jun. 30, 2016 |
Mar. 31, 2016 |
Dec. 31, 2017 |
Dec. 31, 2016 |
Dec. 31, 2015 |
|
Income Tax Expense (Benefit), Continuing Operations [Abstract] | |||||||||||
U.S. Federal, Current | $ 10,743 | $ 56,342 | $ 5,728 | ||||||||
State and Local, Current | 5,930 | 6,325 | 402 | ||||||||
Non-U.S. | 10,079 | 8,463 | 2,441 | ||||||||
Total income tax, Current | 26,752 | 71,130 | 8,571 | ||||||||
U.S. Federal, Deferred | (153,217) | 33,959 | 20,890 | ||||||||
State and Local, Deferred | 3,306 | (5,164) | (10,749) | ||||||||
Non-U.S. | 3,459 | (18,725) | 1,788 | ||||||||
Total income tax, Deferred | (146,452) | 10,070 | 11,929 | ||||||||
U.S. Federal, Total | (142,474) | 90,301 | 26,618 | ||||||||
State and Local, Total | 9,236 | 1,161 | (10,347) | ||||||||
Non-U.S. | 13,538 | (10,262) | 4,229 | ||||||||
Total provision for income tax | $ (159,700) | $ 13,400 | $ 23,900 | $ 2,700 | $ 27,200 | $ 7,800 | $ 23,800 | $ 22,400 | $ (119,700) | $ 81,200 | $ 20,500 |
Income Taxes (Income Tax Reconciliation) (Details 3) - USD ($) $ in Thousands |
3 Months Ended | 12 Months Ended | |||||||||
---|---|---|---|---|---|---|---|---|---|---|---|
Dec. 31, 2017 |
Sep. 30, 2017 |
Jun. 30, 2017 |
Mar. 31, 2017 |
Dec. 31, 2016 |
Sep. 30, 2016 |
Jun. 30, 2016 |
Mar. 31, 2016 |
Dec. 31, 2017 |
Dec. 31, 2016 |
Dec. 31, 2015 |
|
Income Taxes [Line Items] | |||||||||||
U.S. Federal taxes at statutory rate | $ 63,976 | $ 87,731 | $ (42,311) | ||||||||
State and local taxes, net of U.S. Federal tax | 6,949 | (2,965) | (3,441) | ||||||||
Deferred taxes on future distributions of unremitted non-U.S. subsidiary earnings | 1,606 | 1,993 | 2,688 | ||||||||
Stock based compensation | $ 5,900 | (6,023) | 0 | 0 | |||||||
Goodwill impairments and dispositions | 0 | (5,631) | 63,889 | ||||||||
U.S. Federal Manufacturing Deducation tax benefits | (1,329) | (6,012) | (625) | ||||||||
Write-off of deferred taxes related to intercompany loans | 0 | 10,965 | 0 | ||||||||
Deferred tax impact of U.S. Federal tax rate reduction to 21%, net of state tax impact | (153,336) | 0 | 0 | ||||||||
Deferred tax benefit on unremitted non-U.S. subsidiary earnings | (28,324) | 0 | 0 | ||||||||
Other, net | (338) | 4,611 | 3,154 | ||||||||
Total provision for income tax | $ (159,700) | $ 13,400 | $ 23,900 | $ 2,700 | $ 27,200 | $ 7,800 | $ 23,800 | $ 22,400 | (119,700) | 81,200 | 20,500 |
State [Member] | |||||||||||
Income Taxes [Line Items] | |||||||||||
Valuation allowance against tax benefits | (946) | 3,196 | (3,285) | ||||||||
non-U.S. [Member] | |||||||||||
Income Taxes [Line Items] | |||||||||||
Valuation allowance against tax benefits | $ (1,935) | $ (12,688) | $ 431 |
Income Taxes (Deferred Income Taxes Components) (Details 4) - USD ($) $ in Thousands |
Dec. 31, 2017 |
Dec. 31, 2016 |
---|---|---|
Deferred Income Tax Liabilities [Line Items] | ||
Accrued postretirement benefits | $ 5,333 | $ 9,444 |
Other benefit obligations | 78,815 | 120,792 |
Accounts receivable | 5,481 | 10,780 |
State income tax loss carryforwards | 35,434 | 23,178 |
U.S. Federal income tax loss carryforwards | 2,857 | 6,212 |
Non-U.S. income tax loss carryforwards | 18,797 | 19,246 |
Non-U.S. capital loss carryforwards | 2,336 | 1,929 |
Other | 26,546 | 44,401 |
Deferred tax assets | 178,121 | 237,903 |
Valuation allowance | (48,742) | (41,319) |
Deferred tax assets, net | 129,379 | 196,584 |
Property, plant and equipment | 11,248 | 13,591 |
Unrealized gain on available-for-sale securities | 70,827 | 61,964 |
Goodwill and other intangible assets | 109,428 | 132,997 |
Non-U.S. withholding tax | 1,606 | 0 |
Deferred tax liabilities | 476,713 | 558,430 |
Deferred Income Tax Liabilities, Net | 347,334 | 361,846 |
non-U.S. [Member] | ||
Deferred Income Tax Liabilities [Line Items] | ||
Non-U.S. income tax loss carryforwards | 18,800 | |
Non-U.S. capital loss carryforwards | 2,300 | |
Valuation allowance | (8,200) | |
U.S. Federal [Member] | ||
Deferred Income Tax Liabilities [Line Items] | ||
U.S. Federal income tax loss carryforwards | 2,900 | |
U.S Federal foreign income tax credit carryforwards | 2,522 | 1,921 |
Pension Plan [Member] | ||
Deferred Income Tax Liabilities [Line Items] | ||
Prepaid pension cost | $ 283,604 | $ 349,878 |
Income Taxes (Operating Loss Carryforwards) (Details 5) $ in Millions |
Dec. 31, 2017
USD ($)
|
---|---|
State [Member] | |
Operating Loss Carryforwards [Line Items] | |
Income tax loss carryforwards to expire | $ 635.1 |
U.S. Federal [Member] | |
Operating Loss Carryforwards [Line Items] | |
Income tax loss carryforwards to be fully utilized | 13.5 |
2018 [Member] | State [Member] | |
Operating Loss Carryforwards [Line Items] | |
Income tax loss carryforwards to expire | 8.3 |
2018 [Member] | U.S. Federal [Member] | |
Operating Loss Carryforwards [Line Items] | |
Income tax loss carryforwards to be fully utilized | 3.6 |
2019 [Member] | State [Member] | |
Operating Loss Carryforwards [Line Items] | |
Income tax loss carryforwards to expire | 2.6 |
2019 [Member] | U.S. Federal [Member] | |
Operating Loss Carryforwards [Line Items] | |
Income tax loss carryforwards to be fully utilized | 3.3 |
2020 [Member] | State [Member] | |
Operating Loss Carryforwards [Line Items] | |
Income tax loss carryforwards to expire | 18.3 |
2020 [Member] | U.S. Federal [Member] | |
Operating Loss Carryforwards [Line Items] | |
Income tax loss carryforwards to be fully utilized | 3.3 |
2021 [Member] | State [Member] | |
Operating Loss Carryforwards [Line Items] | |
Income tax loss carryforwards to expire | 20.1 |
2021 [Member] | U.S. Federal [Member] | |
Operating Loss Carryforwards [Line Items] | |
Income tax loss carryforwards to be fully utilized | 1.1 |
2022 [Member] | State [Member] | |
Operating Loss Carryforwards [Line Items] | |
Income tax loss carryforwards to expire | 1.0 |
2022 [Member] | U.S. Federal [Member] | |
Operating Loss Carryforwards [Line Items] | |
Income tax loss carryforwards to be fully utilized | 0.9 |
2023 and after [Member] | State [Member] | |
Operating Loss Carryforwards [Line Items] | |
Income tax loss carryforwards to expire | 584.8 |
2023 and after [Member] | U.S. Federal [Member] | |
Operating Loss Carryforwards [Line Items] | |
Income tax loss carryforwards to be fully utilized | $ 1.3 |
Income Taxes (Deferred Tax Valluation Allowances) (Details 6) - Deferred Tax Valuation Allowance [Member] - USD ($) $ in Thousands |
12 Months Ended | ||
---|---|---|---|
Dec. 31, 2017 |
Dec. 31, 2016 |
Dec. 31, 2015 |
|
Movement in Valuation Allowances and Reserves [Roll Forward] | |||
Balance at Begining of Period | $ 41,319 | $ 69,545 | $ 65,521 |
Tax Expense and Revaluation | 7,423 | 4,709 | 4,024 |
Deductions | 0 | (32,935) | 0 |
Balance at End of Period | $ 48,742 | $ 41,319 | $ 69,545 |
Income Taxes Income Taxes (Unrecognized Tax Benefits Rollforward) (Details 7) - USD ($) $ in Thousands |
12 Months Ended | ||
---|---|---|---|
Dec. 31, 2017 |
Dec. 31, 2016 |
Dec. 31, 2015 |
|
Reconciliation of Unrecognized Tax Benefits, Excluding Amounts Pertaining to Examined Tax Returns [Roll Forward] | |||
Beginning unrecognized tax benefits | $ 17,331 | $ 17,331 | $ 19,817 |
Increases related to current year tax positions | 0 | 0 | 0 |
Increases related to prior year tax positions | 0 | 0 | 0 |
Decrease related to prior year tax positions | 0 | 0 | (2,486) |
Decreases related to settlement with tax authorities | 0 | 0 | 0 |
Decreases due to lapse of applicable statute of limitations | 0 | 0 | 0 |
Ending unrecognized tax benefits | $ 17,331 | $ 17,331 | $ 17,331 |
Debt (Narrative) (Details) |
1 Months Ended | 3 Months Ended | 12 Months Ended | ||||||||||||||||||
---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
Jul. 25, 2016
GBP (£)
|
Jul. 14, 2016
GBP (£)
|
Jun. 29, 2015
USD ($)
|
Jan. 31, 2009
USD ($)
|
Dec. 31, 2017
USD ($)
|
Sep. 30, 2017
USD ($)
|
Jun. 30, 2017
USD ($)
|
Mar. 31, 2017
USD ($)
|
Dec. 31, 2016
USD ($)
|
Sep. 30, 2016
USD ($)
|
Jun. 30, 2016
USD ($)
|
Mar. 31, 2016
USD ($)
|
Dec. 31, 2017
USD ($)
|
Dec. 31, 2016
USD ($)
|
Dec. 31, 2015
USD ($)
|
Jun. 30, 2015
USD ($)
|
||||||
Debt Instrument [Line Items] | |||||||||||||||||||||
Average borrowings outstanding | $ 493,200,000 | $ 443,900,000 | |||||||||||||||||||
Weighted average interest rate of borrowings | 6.30% | 6.70% | |||||||||||||||||||
Net interest expense incurred | $ 27,300,000 | $ 32,300,000 | $ 30,700,000 | ||||||||||||||||||
Interest Income | $ 3,184,000 | $ 861,000 | $ 1,173,000 | $ 1,363,000 | $ 1,041,000 | $ 740,000 | $ 721,000 | $ 591,000 | 6,581,000 | 3,093,000 | 1,909,000 | ||||||||||
Interest expense | $ 8,103,000 | $ 8,619,000 | $ 9,035,000 | $ 8,129,000 | 10,857,000 | $ 8,614,000 | $ 7,971,000 | $ 7,948,000 | $ 33,886,000 | 35,390,000 | $ 32,654,000 | ||||||||||
7.25% Unsecured Notes due February 1, 2019 [Member] | |||||||||||||||||||||
Debt Instrument [Line Items] | |||||||||||||||||||||
Unamortized Debt Issuance Expense | $ 100,000 | $ 100,000 | |||||||||||||||||||
Interest rate of debt instrument | 7.25% | 7.25% | 7.25% | 7.25% | 7.25% | ||||||||||||||||
Face amount of debt issued | $ 400,000,000 | ||||||||||||||||||||
Debt Instrument, Maturity date | Feb. 01, 2019 | ||||||||||||||||||||
Notes repurchase percentage of principal amount to be eligible for redemption | 101.00% | ||||||||||||||||||||
Fair value of debt instrument | $ 414,700,000 | $ 438,700,000 | $ 414,700,000 | $ 438,700,000 | |||||||||||||||||
Carrying value of debt instrument | [1] | 399,507,000 | 399,052,000 | 399,507,000 | 399,052,000 | ||||||||||||||||
Debt Instrument, Term | 10 years | ||||||||||||||||||||
Five-Year Revolving Credit Agreement Dated June 29, 2015 [Member] | |||||||||||||||||||||
Debt Instrument [Line Items] | |||||||||||||||||||||
Covenant, Leverage Ratio, Maximum | 3.5 | ||||||||||||||||||||
Covenant, Interest Coverage Ratio, Minimum | 3.5 | ||||||||||||||||||||
Line of Credit | $ 0 | 0 | $ 0 | $ 0 | |||||||||||||||||
Current borrowing capacity | $ 200,000,000 | ||||||||||||||||||||
Debt Instrument, Term | 5 years | ||||||||||||||||||||
Other Indebtedness [Member] | |||||||||||||||||||||
Debt Instrument [Line Items] | |||||||||||||||||||||
Interest rate of debt instrument | 2.00% | 2.00% | |||||||||||||||||||
Debt Instrument, Maturity year, start | Jan. 01, 2019 | ||||||||||||||||||||
Debt Instrument, Maturity year, end | Dec. 31, 2026 | ||||||||||||||||||||
Debt Instrument, Maturity date | Dec. 31, 2026 | ||||||||||||||||||||
Kaplan Four Year Credit Agreement Dated July 14, 2016 [Member] | |||||||||||||||||||||
Debt Instrument [Line Items] | |||||||||||||||||||||
Unamortized Debt Issuance Expense | $ 400,000 | 500,000 | $ 400,000 | $ 500,000 | |||||||||||||||||
Line of Credit | [2] | $ 93,671,000 | $ 91,316,000 | 93,671,000 | $ 91,316,000 | ||||||||||||||||
Minimum [Member] | Five-Year Revolving Credit Agreement Dated June 29, 2015 [Member] | |||||||||||||||||||||
Debt Instrument [Line Items] | |||||||||||||||||||||
Unused Capacity, Commitment Fee Percentage | 0.15% | ||||||||||||||||||||
Minimum [Member] | Other Indebtedness [Member] | |||||||||||||||||||||
Debt Instrument [Line Items] | |||||||||||||||||||||
Interest rate of debt instrument | 2.00% | 2.00% | |||||||||||||||||||
Maximum [Member] | Five-Year Revolving Credit Agreement Dated June 29, 2015 [Member] | |||||||||||||||||||||
Debt Instrument [Line Items] | |||||||||||||||||||||
Unused Capacity, Commitment Fee Percentage | 0.25% | ||||||||||||||||||||
Maximum [Member] | Other Indebtedness [Member] | |||||||||||||||||||||
Debt Instrument [Line Items] | |||||||||||||||||||||
Interest rate of debt instrument | 6.00% | 6.00% | |||||||||||||||||||
Eurodollar [Member] | Five-Year Revolving Credit Agreement Dated June 29, 2015 [Member] | |||||||||||||||||||||
Debt Instrument [Line Items] | |||||||||||||||||||||
Basis Spread on Variable Rate | 1.00% | ||||||||||||||||||||
Federal Funds Effective Swap Rate [Member] | Five-Year Revolving Credit Agreement Dated June 29, 2015 [Member] | |||||||||||||||||||||
Debt Instrument [Line Items] | |||||||||||||||||||||
Basis Spread on Variable Rate | 0.50% | ||||||||||||||||||||
Education [Member] | Interest Rate Swap [Member] | |||||||||||||||||||||
Debt Instrument [Line Items] | |||||||||||||||||||||
Notional amount of cash flow hedge | £ | £ 75,000,000 | ||||||||||||||||||||
Derivative, Fixed Interest Rate | 0.51% | ||||||||||||||||||||
Interest rate swap percentage rate | 2.01% | ||||||||||||||||||||
Basis Spread on Variable Rate | 1.50% | ||||||||||||||||||||
Education [Member] | Kaplan Four Year Credit Agreement Dated July 14, 2016 [Member] | |||||||||||||||||||||
Debt Instrument [Line Items] | |||||||||||||||||||||
Covenant, Leverage Ratio, Maximum | 3.5 | ||||||||||||||||||||
Covenant, Interest Coverage Ratio, Minimum | 3.5 | ||||||||||||||||||||
Line of Credit | £ | £ 75,000,000 | ||||||||||||||||||||
Current borrowing capacity | £ | £ 75,000,000 | ||||||||||||||||||||
Debt Instrument, Term | 4 years | ||||||||||||||||||||
Education [Member] | London Interbank Offered Rate (LIBOR) [Member] | Minimum [Member] | Kaplan Four Year Credit Agreement Dated July 14, 2016 [Member] | |||||||||||||||||||||
Debt Instrument [Line Items] | |||||||||||||||||||||
Basis Spread on Variable Rate | 1.25% | ||||||||||||||||||||
Education [Member] | London Interbank Offered Rate (LIBOR) [Member] | Maximum [Member] | Kaplan Four Year Credit Agreement Dated July 14, 2016 [Member] | |||||||||||||||||||||
Debt Instrument [Line Items] | |||||||||||||||||||||
Basis Spread on Variable Rate | 1.75% | ||||||||||||||||||||
Cable Spin-Off [Member] | |||||||||||||||||||||
Debt Instrument [Line Items] | |||||||||||||||||||||
Face amount of debt issued | $ 450,000,000 | ||||||||||||||||||||
Cable Spin-Off [Member] | Cable [Member] | |||||||||||||||||||||
Debt Instrument [Line Items] | |||||||||||||||||||||
Face amount of debt issued | $ 550,000,000 | ||||||||||||||||||||
Debt Instrument, Redemption, First Anniversary [Member] | Education [Member] | Kaplan Four Year Credit Agreement Dated July 14, 2016 [Member] | |||||||||||||||||||||
Debt Instrument [Line Items] | |||||||||||||||||||||
Debt Instrument Price Percentage Of Outstanding Balance Redeemed | 6.66% | ||||||||||||||||||||
Debt Instrument, Redemption, Second Anniversary [Member] | Education [Member] | Kaplan Four Year Credit Agreement Dated July 14, 2016 [Member] | |||||||||||||||||||||
Debt Instrument [Line Items] | |||||||||||||||||||||
Debt Instrument Price Percentage Of Outstanding Balance Redeemed | 6.66% | ||||||||||||||||||||
Debt Instrument, Redemption, Third Anniversary [Member] | Education [Member] | Kaplan Four Year Credit Agreement Dated July 14, 2016 [Member] | |||||||||||||||||||||
Debt Instrument [Line Items] | |||||||||||||||||||||
Debt Instrument Price Percentage Of Outstanding Balance Redeemed | 6.66% | ||||||||||||||||||||
Securities Subject to Mandatory Redemption [Member] | |||||||||||||||||||||
Debt Instrument [Line Items] | |||||||||||||||||||||
Interest Income | $ 2,300,000 | ||||||||||||||||||||
Interest expense | $ 2,700,000 | ||||||||||||||||||||
|
Debt (Details 1) - USD ($) $ in Thousands |
Dec. 31, 2017 |
Dec. 31, 2016 |
|||||
---|---|---|---|---|---|---|---|
Debt Instrument [Line Items] | |||||||
Other indebtedness | $ 109 | $ 1,479 | |||||
Total Debt | 493,287 | 491,847 | |||||
Less: current portion | (6,726) | (6,128) | |||||
Total Long-Term Debt | 486,561 | 485,719 | |||||
7.25% Unsecured Notes due February 1, 2019 [Member] | |||||||
Debt Instrument [Line Items] | |||||||
Unamortized Debt Issuance Expense | 100 | ||||||
Unsecured notes | [1] | 399,507 | 399,052 | ||||
Kaplan Four Year Credit Agreement Dated July 14, 2016 [Member] | |||||||
Debt Instrument [Line Items] | |||||||
Unamortized Debt Issuance Expense | 400 | 500 | |||||
Line of Credit | [2] | $ 93,671 | $ 91,316 | ||||
|
Fair Value Measurements (Narrative) (Details) - USD ($) $ in Thousands |
3 Months Ended | 12 Months Ended | |||||||
---|---|---|---|---|---|---|---|---|---|
Dec. 31, 2017 |
Sep. 30, 2017 |
Jun. 30, 2017 |
Mar. 31, 2017 |
Dec. 31, 2016 |
Sep. 30, 2016 |
Dec. 31, 2017 |
Dec. 31, 2016 |
Dec. 31, 2015 |
|
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |||||||||
Impairment of goodwill and other long-lived assets | $ 78 | $ 312 | $ 9,224 | $ 0 | $ 9,614 | $ 1,603 | $ 259,700 | ||
Vocational School Company [Member] | |||||||||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |||||||||
Write-downs of cost method investment | $ 12,000 | $ 15,000 | $ 27,000 |
Fair Value Measurements (Details 1) - USD ($) $ in Thousands |
Dec. 31, 2017 |
Dec. 31, 2016 |
|||||||||||||||
---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
Assets | |||||||||||||||||
Investments in Marketable equity securities | $ 536,315 | $ 424,229 | |||||||||||||||
Fair Value, Measurements, Recurring [Member] | |||||||||||||||||
Assets | |||||||||||||||||
Money market investments | [1] | 217,628 | 435,258 | ||||||||||||||
Commercial paper | [2] | 49,882 | |||||||||||||||
Investments in Marketable equity securities | [3] | 536,315 | 424,229 | ||||||||||||||
Other current investments | [4] | 20,838 | 24,012 | ||||||||||||||
Total Financial Assets | 774,781 | 933,381 | |||||||||||||||
Liabilities | |||||||||||||||||
Deferred compensation plan liabilities | [5] | 43,414 | 46,300 | ||||||||||||||
Interest rate swap | [6] | 244 | 365 | ||||||||||||||
Mandatorily Redeemable Noncontrolling Interest | [7] | 10,331 | 12,584 | ||||||||||||||
Total Financial Liabilities | 53,989 | 59,249 | |||||||||||||||
Level 1 [Member] | Fair Value, Measurements, Recurring [Member] | |||||||||||||||||
Assets | |||||||||||||||||
Money market investments | [1] | 0 | 0 | ||||||||||||||
Commercial paper | [2] | 49,882 | |||||||||||||||
Investments in Marketable equity securities | [3] | 536,315 | 424,229 | ||||||||||||||
Other current investments | [4] | 9,831 | 6,957 | ||||||||||||||
Total Financial Assets | 546,146 | 481,068 | |||||||||||||||
Liabilities | |||||||||||||||||
Deferred compensation plan liabilities | [5] | 0 | 0 | ||||||||||||||
Interest rate swap | [6] | 0 | 0 | ||||||||||||||
Mandatorily Redeemable Noncontrolling Interest | [7] | 0 | 0 | ||||||||||||||
Total Financial Liabilities | 0 | 0 | |||||||||||||||
Level 2 [Member] | Fair Value, Measurements, Recurring [Member] | |||||||||||||||||
Assets | |||||||||||||||||
Money market investments | [1] | 217,628 | 435,258 | ||||||||||||||
Commercial paper | [2] | 0 | |||||||||||||||
Investments in Marketable equity securities | [3] | 0 | 0 | ||||||||||||||
Other current investments | [4] | 11,007 | 17,055 | ||||||||||||||
Total Financial Assets | 228,635 | 452,313 | |||||||||||||||
Liabilities | |||||||||||||||||
Deferred compensation plan liabilities | [5] | 43,414 | 46,300 | ||||||||||||||
Interest rate swap | [6] | 244 | 365 | ||||||||||||||
Mandatorily Redeemable Noncontrolling Interest | [7] | 0 | 0 | ||||||||||||||
Total Financial Liabilities | 43,658 | 46,665 | |||||||||||||||
Level 3 [Member] | Fair Value, Measurements, Recurring [Member] | |||||||||||||||||
Assets | |||||||||||||||||
Money market investments | [1] | 0 | 0 | ||||||||||||||
Commercial paper | [2] | 0 | |||||||||||||||
Investments in Marketable equity securities | [3] | 0 | 0 | ||||||||||||||
Other current investments | [4] | 0 | 0 | ||||||||||||||
Total Financial Assets | 0 | 0 | |||||||||||||||
Liabilities | |||||||||||||||||
Deferred compensation plan liabilities | [5] | 0 | 0 | ||||||||||||||
Interest rate swap | [6] | 0 | 0 | ||||||||||||||
Mandatorily Redeemable Noncontrolling Interest | [7] | 10,331 | 12,584 | ||||||||||||||
Total Financial Liabilities | $ 10,331 | $ 12,584 | |||||||||||||||
|
Redeemable Preferred Stock (Details) $ / shares in Units, $ in Thousands |
9 Months Ended | 12 Months Ended | |||
---|---|---|---|---|---|
Oct. 01, 2015
USD ($)
$ / shares
shares
|
Sep. 30, 2015
$ / shares
|
Dec. 31, 2017
USD ($)
|
Dec. 31, 2016
USD ($)
|
Dec. 31, 2015
USD ($)
|
|
Temporary Equity [Abstract] | |||||
Redeemable Preferred Stock, par value per share | $ 1 | ||||
Redeemable Preferred Stock, liquidation value per share | $ 1,000 | ||||
Redeemable preferred shares outstanding | shares | 10,510 | ||||
Redeemable Preferred Stock, redemption value per share | $ 1,000 | ||||
Redeemable preferred stock redemption amount | $ | $ 10,500 | $ 0 | $ 0 | $ 10,510 | |
Dividends payable per share | $ 80 | ||||
Number of times dividends payable in a year per share | 4 |
Capital Stock, Stock Awards, and Stock Options (Narrative) (Details) |
1 Months Ended | 2 Months Ended | 3 Months Ended | 12 Months Ended | ||||||
---|---|---|---|---|---|---|---|---|---|---|
Jul. 01, 2015
USD ($)
|
Jan. 31, 2018
$ / shares
|
Feb. 23, 2018
shares
|
Dec. 31, 2015
USD ($)
employee
shares
|
Jun. 30, 2015
USD ($)
employee
shares
|
Dec. 31, 2017
USD ($)
$ / shares
shares
|
Dec. 31, 2016
USD ($)
$ / shares
shares
|
Dec. 31, 2015
USD ($)
$ / shares
shares
|
Nov. 09, 2017
shares
|
Sep. 30, 2015
shares
|
|
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||||||||
Cost of shares repurchased by company | $ | $ 50,770,000 | $ 108,948,000 | $ 22,979,000 | |||||||
Shares subject to award outstanding | 51,575 | 67,225 | ||||||||
Number of shares forfeited due to modification | 2,600 | |||||||||
Number of shares awarded in 2018 | 15,543 | |||||||||
Exercised, Number of Shares | 3,476 | |||||||||
Number of shares granted | 2,000 | |||||||||
Stock options outstanding | 185,520 | 186,996 | ||||||||
Dividends declared per common share | $ / shares | $ 5.08 | $ 4.84 | $ 9.10 | |||||||
Restricted Stock [Member] | ||||||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||||||||
Shares excluded from earnings per share | 5,250 | 5,450 | 6,250 | |||||||
Kaplan Stock Option [Member] | ||||||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||||||||
Exercised, Number of Shares | 0 | 0 | 0 | |||||||
Number of shares granted | 0 | 0 | 2,500 | |||||||
Stock options outstanding | 0 | |||||||||
Employee Stock Option [Member] | ||||||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||||||||
Shares excluded from earnings per share | 104,000 | 102,000 | 102,000 | |||||||
Senior Manager [Member] | Kaplan Stock Option [Member] | ||||||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||||||||
Vesting period | 4 years | |||||||||
Maximum [Member] | Kaplan Stock Option [Member] | ||||||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||||||||
Vesting period | 5 years | |||||||||
Minimum [Member] | Kaplan Stock Option [Member] | ||||||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||||||||
Vesting period | 4 years | |||||||||
Education [Member] | Kaplan Stock Option and Restricted Stock [Member] | ||||||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||||||||
Stock-based compensation expense | $ | $ 1,200,000 | $ 600,000 | $ (1,800,000) | |||||||
Accrual balance related to stock based compensation | $ | 10,800,000 | |||||||||
Stock compensation payouts | $ | $ 0 | $ 0 | $ 0 | |||||||
Class B Common Stock [Member] | ||||||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||||||||
Right to elect Board of Directors percentage | 30.00% | |||||||||
Shares repurchased by company | 88,361 | 229,498 | 46,226 | |||||||
Cost of shares repurchased by company | $ | $ 50,800,000 | $ 108,900,000 | $ 23,000,000 | |||||||
Number of shares authorized to be repurchased | 500,000 | |||||||||
Number of shares authorized to be repurchased remaining under previous authorization | 163,237 | |||||||||
Authorized shares remaining for repurchase | 472,678 | |||||||||
Market value of company's stock | $ / shares | $ 558.35 | |||||||||
Class B Common Stock [Member] | Restricted Stock [Member] | ||||||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||||||||
Number of shares affected by modification of terms | 9,800 | |||||||||
Number of employees affected by modification of terms of share awards | employee | 1 | |||||||||
Number of share awards with accelerated vesting | 9,412 | |||||||||
Number of shares forfeited due to modification | 388 | |||||||||
Share awards outstanding, restriction will lapse in 2018 | 14,100 | |||||||||
Share awards outstanding, restriction will lapse in 2019 | 22,675 | |||||||||
Share awards outstanding, restriction will lapse in 2020 | 250 | |||||||||
Share awards outstanding, restriction will lapse in 2021 | 14,550 | |||||||||
Stock-based compensation expense | $ | $ 8,100,000 | 11,000,000 | 25,300,000 | |||||||
Total unrecognized compensation expense | $ | $ 10,200,000 | |||||||||
Years over which cost expected to be recognized | 1 year 4 months 15 days | |||||||||
Class B Common Stock [Member] | Employee Stock Option [Member] | ||||||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||||||||
Stock-based compensation expense | $ | $ 2,000,000 | $ 2,400,000 | $ 22,900,000 | |||||||
Total unrecognized compensation expense | $ | $ 6,400,000 | |||||||||
Years over which cost expected to be recognized | 3 years 2 months 12 days | |||||||||
Options outstanding exercisable now | 128,394 | |||||||||
Options outstanding exercisable in 2018 | 17,332 | |||||||||
Options outstanding exercisable in 2019 | 17,333 | |||||||||
Options outstanding exercisable in 2020 | 17,334 | |||||||||
Options outstanding exercisable in 2021 | 4,459 | |||||||||
Options outstanding exercisable in 2022 | 333 | |||||||||
Options outstanding exercisable in 2023 | 335 | |||||||||
Intrinsic value of options outstanding | $ | $ 19,300,000 | |||||||||
Intrinsic value of options exercisable | $ | 19,300,000 | |||||||||
Intrinsic value of options unvested | $ | $ 0 | |||||||||
Options unvested, shares | 57,126 | 72,124 | ||||||||
Options unvested, average exercise price | $ / shares | $ 770.67 | $ 761.30 | ||||||||
Options unvested, weighted average remaining contractual term, years | 7 years 2 months 12 days | 8 years 1 month 6 days | ||||||||
Exercised, Number of Shares | 3,476 | 4,726 | 40,527 | |||||||
Intrinsic value of options exercised | $ | $ 700,000 | $ 1,200,000 | $ 19,500,000 | |||||||
Tax benefit from stock option exercises | $ | $ 300,000 | $ 500,000 | $ 7,800,000 | |||||||
Number of shares granted | 0 | |||||||||
Weighted average fair value, granted options | $ / shares | $ 120.47 | $ 155.00 | ||||||||
Class B Common Stock [Member] | Subsequent Event [Member] | Restricted Stock [Member] | ||||||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||||||||
Number of shares awarded in 2018 | 200 | |||||||||
Class B Common Stock [Member] | Discontinued Operations [Member] | Restricted Stock [Member] | ||||||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||||||||
Incremental stock compensation expense, net of forfeitures, due to modification | $ | $ 6,000,000 | |||||||||
Class B Common Stock [Member] | 2003 Employee Stock Option Plan [Member] | Employee Stock Option [Member] | ||||||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||||||||
Shares reserved for stock awards granted under the plan | 1,900,000 | |||||||||
Shares reserved for issuance | 79,589 | |||||||||
Class B Common Stock [Member] | 2003 Employee Stock Option Plan [Member] | Maximum [Member] | Employee Stock Option [Member] | ||||||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||||||||
Vesting period | 10 years | |||||||||
Class B Common Stock [Member] | 2003 Employee Stock Option Plan [Member] | Minimum [Member] | Employee Stock Option [Member] | ||||||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||||||||
Vesting period | 4 years | |||||||||
Class B Common Stock [Member] | 2012 Incentive Compensation Plan [Member] | Stock Compensation Plan [Member] | ||||||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||||||||
Shares reserved for stock awards granted under the plan | 500,000 | 772,588 | ||||||||
Individual award limit authorization | 50,000 | 77,258 | ||||||||
Shares reserved for issuance | 589,483 | |||||||||
Shares subject to award outstanding | 157,506 | |||||||||
Shares available for future awards | 431,977 | |||||||||
Class B Common Stock [Member] | 2012 Incentive Compensation Plan [Member] | 2017 and 2015 Options Granted [Member] | ||||||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||||||||
Vesting period | 6 years | 6 years | ||||||||
Class B Common Stock [Member] | 2012 Incentive Compensation Plan [Member] | Maximum [Member] | Employee Stock Option [Member] | ||||||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||||||||
Vesting period | 10 years | |||||||||
Class B Common Stock [Member] | 2012 Incentive Compensation Plan [Member] | Minimum [Member] | Employee Stock Option [Member] | ||||||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||||||||
Vesting period | 4 years | |||||||||
Kaplan Restricted Stock [Member] | Senior Manager [Member] | ||||||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||||||||
Shares subject to award outstanding | 7,206 | |||||||||
Kaplan Restricted Stock [Member] | Subsequent Event [Member] | ||||||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||||||||
Fair value of company common stock | $ / shares | $ 1,500 | |||||||||
Kaplan Stock Option [Member] | ||||||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||||||||
Fair value of company common stock | $ / shares | $ 1,180 | |||||||||
Cable Spin-Off [Member] | Class B Common Stock [Member] | Restricted Stock [Member] | ||||||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||||||||
Number of shares affected by modification of terms | 10,830 | |||||||||
Number of share awards with accelerated vesting | 6,324 | |||||||||
Number of shares forfeited due to modification | 4,506 | |||||||||
Cable Spin-Off [Member] | Class B Common Stock [Member] | Employee Stock Option [Member] | ||||||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||||||||
Incremental stock compensation expense, net of forfeitures, due to modification | $ | $ 23,500,000 | |||||||||
Cable Spin-Off [Member] | Class B Common Stock [Member] | Discontinued Operations [Member] | Restricted Stock [Member] | ||||||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||||||||
Incremental stock compensation expense, net of forfeitures, due to modification | $ | $ 3,700,000 | |||||||||
Cable Spin-Off [Member] | Class B Common Stock [Member] | Cable [Member] | Restricted Stock [Member] | ||||||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||||||||
Number of employees affected by modification of terms of share awards | employee | 21 | |||||||||
Cable Spin-Off [Member] | July 2015 through December 2018 [Member] | Class B Common Stock [Member] | Employee Stock Option [Member] | ||||||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||||||||
Incremental stock compensation expense, net of forfeitures, due to modification | $ | 4,700,000 | |||||||||
Cable Spin-Off [Member] | July 2015 through December 2018 [Member] | Restricted Stock [Member] | ||||||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||||||||
Incremental stock compensation expense, net of forfeitures, due to modification | $ | 3,000,000 | |||||||||
Exercise Price Above Fair Market Value Of Common Stock [Member] | Class B Common Stock [Member] | Employee Stock Option [Member] | ||||||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||||||||
Number of shares granted | 2,000 | |||||||||
Exercise Price Above Fair Market Value Of Common Stock [Member] | After Spin-Off of Cable ONE [Member] | Class B Common Stock [Member] | Employee Stock Option [Member] | ||||||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||||||||
Number of shares granted | 24,742 | |||||||||
Corporate office [Member] | Cable Spin-Off [Member] | Q3 2015 [Member] | Class B Common Stock [Member] | Employee Stock Option [Member] | ||||||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||||||||
Incremental stock compensation expense, net of forfeitures, due to modification | $ | $ 18,800,000 |
Capital Stock, Stock Awards, and Stock Options (Stock Awards Rollforward) (Details 1) |
12 Months Ended |
---|---|
Dec. 31, 2017
$ / shares
shares
| |
Share-based Compensation Arrangement by Share-based Payment Award, Equity Instruments Other than Options, Nonvested, Number of Shares [Roll Forward] | |
Beginning of year, unvested, Number of Shares | shares | 67,225 |
Awarded, Number of Shares | shares | 15,543 |
Vested, Number of Shares | shares | (28,593) |
Forfeited, Number of Shares | shares | (2,600) |
End of year, unvested, Number of Shares | shares | 51,575 |
Share-based Compensation Arrangement by Share-based Payment Award, Equity Instruments Other than Options, Nonvested, Weighted Average Grant Date Fair Value [Abstract] | |
Beginning of year, Average Grant-Date Fair Value (in dollars per share) | $ / shares | $ 655.15 |
Awarded, Average Grant-Date Fair Value (in dollars per share) | $ / shares | 535.67 |
Vested, Average Grant-Date Fair Value (in dollars per share) | $ / shares | 415.66 |
Forfeited, Average Grant-Date Fair Value (in dollars per share) | $ / shares | 810.81 |
End of year, Average Grant-Date Fair Value (in dollars per share) | $ / shares | $ 744.07 |
Capital Stock, Stock Awards, and Stock Options (Stock Options Rollforward) (Details 2) - $ / shares |
12 Months Ended | ||
---|---|---|---|
Dec. 31, 2017 |
Dec. 31, 2016 |
Dec. 31, 2015 |
|
Share-based Compensation Arrangement by Share-based Payment Award, Options, Outstanding [Roll Forward] | |||
Beginning, Number of Shares | 186,996 | ||
Granted, Number of Shares | 2,000 | ||
Exercised, Number of Shares | (3,476) | ||
Expired or forfeited, Number of Shares | 0 | ||
End, Number of Shares | 185,520 | 186,996 | |
Share-based Compensation Arrangement by Share-based Payment Award, Options, Outstanding, Weighted Average Exercise Price [Abstract] | |||
Beginning, Average Option Price (in dollars per share) | $ 559.62 | ||
Granted, Average Option Price (in dollars per share) | 845.72 | ||
Exercised, Average Option Price (in dollars per share) | 402.79 | ||
Expired or forfeited, Average Option Price (in dollars per share) | 0.00 | ||
End, Average Option Price (in dollars per share) | $ 565.65 | $ 559.62 | |
Employee Stock Option [Member] | Common Class B [Member] | |||
Share-based Compensation Arrangement by Share-based Payment Award, Options, Outstanding [Roll Forward] | |||
Granted, Number of Shares | 0 | ||
Exercised, Number of Shares | (3,476) | (4,726) | (40,527) |
Capital Stock, Stock Awards, and Stock Options (Options Outstanding and Exercisable) (Details 3) - $ / shares |
12 Months Ended | |
---|---|---|
Dec. 31, 2017 |
Dec. 31, 2016 |
|
Share-based Compensation, Shares Authorized under Stock Option Plans, Exercise Price Range [Line Items] | ||
Options Outstanding, Shares Outstanding | 185,520 | 186,996 |
Options Outstanding, Weighted Average Remaining Contractual Life (in years) | 5 years 4 months 24 days | |
Options Outstanding, Weighted Average Exercise Price (in dollars per share) | $ 565.65 | $ 559.62 |
Options Exercisable, Shares Exercisable | 128,394 | |
Options Exercisable, Weighted Average Remaining Contractual Life (in years) | 4 years 7 months 6 days | |
Options Exercisable, Weighted Average Exercise Price (in dollars per share) | $ 476.44 | |
Exercise Price Range of $244-$284 [Member] | ||
Share-based Compensation, Shares Authorized under Stock Option Plans, Exercise Price Range [Line Items] | ||
Low Exercise Price Range | 244 | |
High Exercise Price Range | $ 284 | |
Options Outstanding, Shares Outstanding | 4,262 | |
Options Outstanding, Weighted Average Remaining Contractual Life (in years) | 3 years 3 months 18 days | |
Options Outstanding, Weighted Average Exercise Price (in dollars per share) | $ 262.22 | |
Options Exercisable, Shares Exercisable | 4,262 | |
Options Exercisable, Weighted Average Remaining Contractual Life (in years) | 3 years 3 months 18 days | |
Options Exercisable, Weighted Average Exercise Price (in dollars per share) | $ 262.22 | |
Exercise Price $325 [Member] | ||
Share-based Compensation, Shares Authorized under Stock Option Plans, Exercise Price Range [Line Items] | ||
Low Exercise Price Range | $ 325 | |
Options Outstanding, Shares Outstanding | 77,258 | |
Options Outstanding, Weighted Average Remaining Contractual Life (in years) | 3 years 1 month 6 days | |
Options Outstanding, Weighted Average Exercise Price (in dollars per share) | $ 325.26 | |
Options Exercisable, Shares Exercisable | 77,258 | |
Options Exercisable, Weighted Average Remaining Contractual Life (in years) | 3 years 1 month 6 days | |
Options Exercisable, Weighted Average Exercise Price (in dollars per share) | $ 325.26 | |
Exercise Price $719 [Member] | ||
Share-based Compensation, Shares Authorized under Stock Option Plans, Exercise Price Range [Line Items] | ||
Low Exercise Price Range | $ 719 | |
Options Outstanding, Shares Outstanding | 77,258 | |
Options Outstanding, Weighted Average Remaining Contractual Life (in years) | 6 years 9 months 18 days | |
Options Outstanding, Weighted Average Exercise Price (in dollars per share) | $ 719.15 | |
Options Exercisable, Shares Exercisable | 38,628 | |
Options Exercisable, Weighted Average Remaining Contractual Life (in years) | 6 years 9 months 18 days | |
Options Exercisable, Weighted Average Exercise Price (in dollars per share) | $ 719.15 | |
Exercise Price Range of $805-$872 [Member] | ||
Share-based Compensation, Shares Authorized under Stock Option Plans, Exercise Price Range [Line Items] | ||
Low Exercise Price Range | 805 | |
High Exercise Price Range | $ 872 | |
Options Outstanding, Shares Outstanding | 26,742 | |
Options Outstanding, Weighted Average Remaining Contractual Life (in years) | 8 years | |
Options Outstanding, Weighted Average Exercise Price (in dollars per share) | $ 865.02 | |
Options Exercisable, Shares Exercisable | 8,246 | |
Options Exercisable, Weighted Average Remaining Contractual Life (in years) | 7 years 10 months 24 days | |
Options Exercisable, Weighted Average Exercise Price (in dollars per share) | $ 866.58 |
Capital Stock, Stock Awards, and Stock Options (Fair Value Assumptions) (Details 4) |
12 Months Ended | |
---|---|---|
Dec. 31, 2017 |
Dec. 31, 2015 |
|
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||
Expected life (in years) | 8 years | |
Interest rate, minimum | 1.88% | |
Interest rate | 2.28% | |
Interest rate, maximum | 2.17% | |
Volatility, minimum (percentage) | 31.59% | |
Volatility (percentage) | 26.93% | |
Volatility, maximum (percentage) | 32.69% | |
Dividend yield | 0.85% | |
Minimum [Member] | ||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||
Expected life (in years) | 7 years | |
Dividend yield | 0.81% | |
Maximum [Member] | ||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||
Expected life (in years) | 8 years | |
Dividend yield | 1.18% |
Capital Stock, Stock Awards, and Stock Options (Earnings Per Share) (Details 5) - USD ($) $ / shares in Units, shares in Thousands, $ in Thousands |
3 Months Ended | 12 Months Ended | ||||||||||||
---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
Dec. 31, 2017 |
Sep. 30, 2017 |
Jun. 30, 2017 |
Mar. 31, 2017 |
Dec. 31, 2016 |
Sep. 30, 2016 |
Jun. 30, 2016 |
Mar. 31, 2016 |
Dec. 31, 2017 |
Dec. 31, 2016 |
Dec. 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 | $ 302,044 | $ 168,590 | $ (143,456) | |||||||||||
Less: Dividends paid–common stock outstanding and unvested restricted shares | (28,329) | (27,325) | (53,090) | |||||||||||
Undistributed earnings (losses) | $ 273,715 | $ 141,265 | $ (196,546) | |||||||||||
Percent allocated to common stockholders (1) | 99.06% | 98.79% | 100.00% | [1] | ||||||||||
Undistributed earnings (losses) allocated to common stockholders | $ 271,150 | $ 139,562 | $ (196,546) | |||||||||||
Add: Dividends paid–common stock outstanding | 28,060 | 26,962 | 52,050 | |||||||||||
Numerator for basic earnings (loss) per share | 299,210 | 166,524 | (144,496) | |||||||||||
Add: Additional undistributed earnings due to dilutive stock options | 17 | 9 | 0 | |||||||||||
Numerator for diluted earnings (loss) per share | $ 299,227 | $ 166,533 | $ (144,496) | |||||||||||
Denominator for basic earnings (loss) per share (shares) | 5,473 | 5,518 | 5,539 | 5,535 | 5,527 | 5,544 | 5,544 | 5,623 | 5,516 | 5,559 | 5,727 | |||
Denominator for diluted earnings (loss) per share (shares) | 5,552 | 5,589 | 5,727 | |||||||||||
Income Per Share From Continuing Operations To Common Stockholders [Abstract] | ||||||||||||||
Basic income (loss) per common share from continuing operations in dollars per share | $ 54.24 | $ 29.95 | $ (25.23) | |||||||||||
Diluted income (loss) per common share from continuing operations in dollars per share | $ 53.89 | $ 29.80 | $ (25.23) | |||||||||||
Employee Stock Option [Member] | ||||||||||||||
Schedule of Earnings Per Share, Basic and Diluted, Including Two Class Method [Line Items] | ||||||||||||||
Add: Effect of dilutive stock options (shares) | 36 | 30 | 0 | |||||||||||
|
Capital Stock, Stock Awards, and Stock Options (Antidilutive Shares) (Details 6) - shares shares in Thousands |
12 Months Ended | ||
---|---|---|---|
Dec. 31, 2017 |
Dec. 31, 2016 |
Dec. 31, 2015 |
|
Antidilutive Shares [Abstract] | |||
Antidilutive Restricted Stock | 30 | 40 | 52 |
Antidilutive Options | 0 | 0 | 39 |
Pension and Postretirement Plans (Narrative) (Details) |
3 Months Ended | 12 Months Ended | ||||||
---|---|---|---|---|---|---|---|---|
Dec. 31, 2017
USD ($)
Investment
companies
|
Sep. 30, 2017
USD ($)
|
Dec. 31, 2016
USD ($)
|
Dec. 31, 2015
USD ($)
|
Sep. 30, 2015
USD ($)
|
Dec. 31, 2017
USD ($)
multiemployer_plan
Investment
companies
|
Dec. 31, 2016
USD ($)
multiemployer_plan
|
Dec. 31, 2015
USD ($)
multiemployer_plan
|
|
Retirement Benefits Disclosure [Line Items] | ||||||||
Early retirement and special separation benefit program expense | $ 1,825,000 | $ 0 | $ 4,606,000 | |||||
Expense associated with the retirement benefits provided under incentive savings plans | $ 7,500,000 | $ 7,500,000 | $ 7,600,000 | |||||
Multiemployer Pension Plans [Member] | ||||||||
Retirement Benefits Disclosure [Line Items] | ||||||||
Number of multiemployer plans contributed to | multiemployer_plan | 1 | 1 | 1 | |||||
Contributions to multiemployer pension plans | $ 100,000 | $ 100,000 | $ 100,000 | |||||
Pension Plans [Member] | ||||||||
Retirement Benefits Disclosure [Line Items] | ||||||||
Early retirement and special separation benefit program expense | 1,825,000 | 0 | 4,606,000 | |||||
Settlement | $ 18,000,000 | 0 | 17,993,000 | 0 | ||||
Accumulated benefit obligation | $ 1,261,800,000 | $ 1,137,900,000 | 1,261,800,000 | 1,137,900,000 | ||||
Company contributions | 0 | 0 | ||||||
Estimated employer contributions in next fiscal year | $ 0 | 0 | ||||||
Net Periodic Cost (Benefit) for the Year | (59,039,000) | (49,104,000) | (63,269,000) | |||||
Curtailment | $ 0 | $ 0 | 3,267,000 | |||||
Percent of Plan Assets Managed Internally by Company | 45.00% | |||||||
Percent Of Plan Assets Managed By Investment Companies | 55.00% | |||||||
Number of investment companies actively managing plan assets | companies | 2 | 2 | ||||||
Percentage of total plan assets | 100.00% | 100.00% | 100.00% | 100.00% | ||||
Pension Plans [Member] | Discontinued Operations [Member] | ||||||||
Retirement Benefits Disclosure [Line Items] | ||||||||
Net Periodic Cost (Benefit) for the Year | 1,900,000 | |||||||
Supplemental Executive Retirement Plan (SERP) [Member] | ||||||||
Retirement Benefits Disclosure [Line Items] | ||||||||
Accumulated benefit obligation | $ 108,000,000 | $ 103,000,000 | $ 108,000,000 | $ 103,000,000 | ||||
Company contributions | 5,576,000 | 4,967,000 | ||||||
Supplemental Executive Retirement Plan (SERP) [Member] | Discontinued Operations [Member] | ||||||||
Retirement Benefits Disclosure [Line Items] | ||||||||
Net Periodic Cost (Benefit) for the Year | $ 200,000 | |||||||
Other Postretirement Plans [Member] | ||||||||
Retirement Benefits Disclosure [Line Items] | ||||||||
Company contributions | $ 879,000 | $ 852,000 | ||||||
Discount rate to determine benefit obligation | 3.11% | 3.31% | 3.11% | 3.31% | ||||
Discount rate to determine periodic cost | 3.31% | 3.45% | 3.25% | |||||
Other Postretirement Plans [Member] | Pre-Age 65 [Member] | ||||||||
Retirement Benefits Disclosure [Line Items] | ||||||||
Assumed health care cost trend rate | 7.81% | 7.81% | ||||||
Direction of change for assumed health care cost trend rate | decreasing | |||||||
Ultimate health care cost trend rate | 4.50% | 4.50% | ||||||
Year that rate reaches ultimate trend rate | 2026 | |||||||
Other Postretirement Plans [Member] | Post-Age 65 [Member] | ||||||||
Retirement Benefits Disclosure [Line Items] | ||||||||
Assumed health care cost trend rate | 8.42% | 8.42% | ||||||
Direction of change for assumed health care cost trend rate | decreasing | |||||||
Ultimate health care cost trend rate | 4.50% | 4.50% | ||||||
Year that rate reaches ultimate trend rate | 2026 | |||||||
Berkshire Hathaway Common Stock [Member] | Pension Plans [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] | Pension Plans [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 | $ 1,079,300,000 | $ 978,800,000 | $ 1,079,300,000 | $ 978,800,000 | ||||
Percentage of total plan assets | 46.00% | 48.00% | 46.00% | 48.00% | ||||
Single Equity Concentration [Member] | Equity securities [Member] | Pension Plans [Member] | ||||||||
Retirement Benefits Disclosure [Line Items] | ||||||||
Number of investments the company's pension plan held which individually exceed 10% of total plan assets | Investment | 1 | 1 | ||||||
Single Equity Concentration [Member] | Equity funds [Member] | Pension Plans [Member] | ||||||||
Retirement Benefits Disclosure [Line Items] | ||||||||
Number of investments the company's pension plan held which individually exceed 10% of total plan assets | Investment | 1 | 1 | ||||||
Defined Benefit Plan Assets Total [Member] | Concentration In Single Entity, Type Of Industry, Foreign Country Or Individual Fund [Member] | Pension Plans [Member] | ||||||||
Retirement Benefits Disclosure [Line Items] | ||||||||
Minimum percentage of plan assets considered as significant concentrations in pension plans | 10.00% | |||||||
Special Incentive Program [Member] | Pension Plans [Member] | Corporate office [Member] | ||||||||
Retirement Benefits Disclosure [Line Items] | ||||||||
Early retirement and special separation benefit program expense | $ 900,000 | |||||||
Separation Incentive Program [Member] | Pension Plans [Member] | Forney [Member] | ||||||||
Retirement Benefits Disclosure [Line Items] | ||||||||
Early retirement and special separation benefit program expense | $ 900,000 | |||||||
Education [Member] | Special Incentive Program [Member] | Pension Plans [Member] | ||||||||
Retirement Benefits Disclosure [Line Items] | ||||||||
Early retirement and special separation benefit program expense | $ 3,700,000 | |||||||
Education [Member] | Separation Incentive Program [Member] | Pension Plans [Member] | ||||||||
Retirement Benefits Disclosure [Line Items] | ||||||||
Early retirement and special separation benefit program expense | $ 900,000 | |||||||
Cable Spin-Off [Member] | Pension Plans [Member] | Discontinued Operations [Member] | ||||||||
Retirement Benefits Disclosure [Line Items] | ||||||||
Curtailment | $ 2,200,000 | |||||||
Sale Of KHE Campuses Business [Member] | Pension Plans [Member] | ||||||||
Retirement Benefits Disclosure [Line Items] | ||||||||
Curtailment | $ 1,100,000 | |||||||
Maximum [Member] | Foreign Investments [Member] | Pension Plans [Member] | ||||||||
Retirement Benefits Disclosure [Line Items] | ||||||||
Defined benefit plan, target allocation percentage of assets | 23.00% | 23.00% | ||||||
Minimum [Member] | Fixed income securities [Member] | Pension Plans [Member] | ||||||||
Retirement Benefits Disclosure [Line Items] | ||||||||
Defined benefit plan, target allocation percentage of assets | 10.00% | 10.00% |
Pension and Postretirement Plans (Obligation, Asset, and Funding Information) (Details 1) - USD ($) |
12 Months Ended | ||
---|---|---|---|
Dec. 31, 2017 |
Dec. 31, 2016 |
Dec. 31, 2015 |
|
Defined Benefit Plan, Change in Benefit Obligation [Roll Forward] | |||
Service cost | $ 18,687,000 | $ 20,461,000 | |
Pension Plans [Member] | |||
Defined Benefit Plan, Change in Benefit Obligation [Roll Forward] | |||
Benefit obligation at begining of year | 1,160,897,000 | 1,254,298,000 | |
Service cost | 18,687,000 | 20,461,000 | $ 26,294,000 |
Interest cost | 47,925,000 | 51,608,000 | 52,613,000 |
Amendments | 75,000 | 0 | |
Actuarial (gain) loss | 73,191,000 | (32,203,000) | |
Acquisitions | 58,600,000 | 0 | |
Benefits paid | (74,506,000) | (60,076,000) | |
Special termination benefits | 1,825,000 | 0 | |
Settlement | 0 | (73,191,000) | |
Benefit obligation at end of year | 1,286,694,000 | 1,160,897,000 | 1,254,298,000 |
Defined Benefit Plan, Change in Fair Value of Plan Assets [Roll Forward] | |||
Fair value of assets at beginning of year | 2,042,490,000 | 2,234,268,000 | |
Actual return on plan assets | 375,487,000 | (58,511,000) | |
Employer contributions | 0 | 0 | |
Benefits paid | (74,506,000) | (60,076,000) | |
Settlement | 0 | (73,191,000) | |
Fair value of assets at end of year | 2,343,471,000 | 2,042,490,000 | 2,234,268,000 |
Funded status | 1,056,777,000 | 881,593,000 | |
Supplemental Executive Retirement Plan (SERP) [Member] | |||
Defined Benefit Plan, Change in Benefit Obligation [Roll Forward] | |||
Benefit obligation at begining of year | 106,526,000 | 105,004,000 | |
Service cost | 858,000 | 985,000 | 1,946,000 |
Interest cost | 4,233,000 | 4,384,000 | 4,550,000 |
Actuarial (gain) loss | 4,041,000 | 1,120,000 | |
Benefits paid | (5,576,000) | (4,967,000) | |
Benefit obligation at end of year | 110,082,000 | 106,526,000 | 105,004,000 |
Defined Benefit Plan, Change in Fair Value of Plan Assets [Roll Forward] | |||
Fair value of assets at beginning of year | 0 | 0 | |
Employer contributions | 5,576,000 | 4,967,000 | |
Benefits paid | (5,576,000) | (4,967,000) | |
Fair value of assets at end of year | 0 | 0 | 0 |
Funded status | (110,082,000) | (106,526,000) | |
Other Postretirement Plans [Member] | |||
Defined Benefit Plan, Change in Benefit Obligation [Roll Forward] | |||
Benefit obligation at begining of year | 24,171,000 | 37,391,000 | |
Service cost | 1,028,000 | 1,386,000 | 1,331,000 |
Interest cost | 779,000 | 1,230,000 | 1,299,000 |
Actuarial (gain) loss | (2,830,000) | (14,984,000) | |
Acquisitions | 516,000 | 0 | |
Benefits paid, net of Medicare subsidy | (879,000) | (852,000) | |
Benefit obligation at end of year | 22,785,000 | 24,171,000 | 37,391,000 |
Defined Benefit Plan, Change in Fair Value of Plan Assets [Roll Forward] | |||
Fair value of assets at beginning of year | 0 | 0 | |
Employer contributions | 879,000 | 852,000 | |
Benefits paid, net of Medicare subsidy | (879,000) | (852,000) | |
Fair value of assets at end of year | 0 | 0 | $ 0 |
Funded status | $ (22,785,000) | $ (24,171,000) |
Pension and Postretirement Plans (Consolidated Balance Sheet) (Details 2) - USD ($) $ in Thousands |
Dec. 31, 2017 |
Dec. 31, 2016 |
---|---|---|
Defined Benefit Plan Disclosure [Line Items] | ||
Noncurrent asset | $ 1,056,777 | $ 881,593 |
Pension Plans [Member] | ||
Defined Benefit Plan Disclosure [Line Items] | ||
Noncurrent asset | 1,056,777 | 881,593 |
Current liability | 0 | 0 |
Noncurrent liability | 0 | 0 |
Recognized asset (liability) | 1,056,777 | 881,593 |
Supplemental Executive Retirement Plan (SERP) [Member] | ||
Defined Benefit Plan Disclosure [Line Items] | ||
Noncurrent asset | 0 | 0 |
Current liability | (5,838) | (5,580) |
Noncurrent liability | (104,244) | (100,946) |
Recognized asset (liability) | (110,082) | (106,526) |
Other Postretirement Plans [Member] | ||
Defined Benefit Plan Disclosure [Line Items] | ||
Current liability | (1,920) | (2,312) |
Noncurrent liability | (20,865) | (21,859) |
Recognized asset (liability) | $ (22,785) | $ (24,171) |
Pension and Postretirement Plans (Key Assumptions - Obligation) (Details 3) - Benefit Obligation [Member] |
Dec. 31, 2017 |
Dec. 31, 2016 |
---|---|---|
Pension Plans [Member] | ||
Defined Benefit Plan Disclosure [Line Items] | ||
Discount rate (percent) | 3.60% | 4.10% |
Supplemental Executive Retirement Plan (SERP) [Member] | ||
Defined Benefit Plan Disclosure [Line Items] | ||
Discount rate (percent) | 3.60% | 4.10% |
Maximum [Member] | Pension Plans [Member] | ||
Defined Benefit Plan Disclosure [Line Items] | ||
Rate of compensation increase (percent) | 5.00% | 5.00% |
Maximum [Member] | Supplemental Executive Retirement Plan (SERP) [Member] | ||
Defined Benefit Plan Disclosure [Line Items] | ||
Rate of compensation increase (percent) | 5.00% | 5.00% |
Minimum [Member] | Pension Plans [Member] | ||
Defined Benefit Plan Disclosure [Line Items] | ||
Rate of compensation increase (percent) | 1.00% | 1.00% |
Minimum [Member] | Supplemental Executive Retirement Plan (SERP) [Member] | ||
Defined Benefit Plan Disclosure [Line Items] | ||
Rate of compensation increase (percent) | 1.00% | 1.00% |
Pension and Postretirement Plans (Future Estimated Benefit Payments) (Details 4) $ in Thousands |
Dec. 31, 2017
USD ($)
|
---|---|
Pension Plans [Member] | |
Defined Benefit Plan Disclosure [Line Items] | |
2018 | $ 73,418 |
2019 | 74,433 |
2020 | 74,572 |
2021 | 75,661 |
2022 | 73,921 |
2023-2027 | 371,073 |
Supplemental Executive Retirement Plan (SERP) [Member] | |
Defined Benefit Plan Disclosure [Line Items] | |
2018 | 5,943 |
2019 | 6,320 |
2020 | 6,454 |
2021 | 6,591 |
2022 | 6,719 |
2023-2027 | 34,165 |
Other Postretirement Plans [Member] | |
Defined Benefit Plan Disclosure [Line Items] | |
2018 | 1,920 |
2019 | 1,885 |
2020 | 2,054 |
2021 | 2,086 |
2022 | 2,153 |
2023-2027 | $ 10,178 |
Pension and Postretirement Plans (Total Benefit/Cost) (Details 5) - USD ($) $ in Thousands |
3 Months Ended | 12 Months Ended | ||
---|---|---|---|---|
Dec. 31, 2016 |
Dec. 31, 2017 |
Dec. 31, 2016 |
Dec. 31, 2015 |
|
Defined Benefit Plan Disclosure [Line Items] | ||||
Service cost | $ 18,687 | $ 20,461 | ||
Early retirement programs and special separation benefit expense | 1,825 | 0 | $ 4,606 | |
Defined Benefit Plan, Amounts Recognized in Other Comprehensive Income (Loss) [Abstract] | ||||
Current year actuarial gain (loss) | (179,674) | 133,915 | 211,054 | |
Current year prior service cost | 75 | 0 | 0 | |
Amortization of prior service credit (cost) | (477) | (419) | (275) | |
Recognized net actuarial gain (loss) | 6,527 | (1,157) | 9,906 | |
Curtailments and settlements | 0 | 17,993 | (51) | |
Total Recognized in Other Comprehensive Income (Before Tax Effects) | (173,549) | 150,332 | 219,800 | |
Pension Plans [Member] | ||||
Defined Benefit Plan Disclosure [Line Items] | ||||
Service cost | 18,687 | 20,461 | 26,294 | |
Interest cost | 47,925 | 51,608 | 52,613 | |
Expected return on assets | (121,411) | (121,470) | (130,571) | |
Amortization of prior service cost (credit) | 170 | 297 | 320 | |
Recognized actuarial loss (gain) | (4,410) | 0 | (11,925) | |
Net Periodic Cost (Benefit) for the Year | (59,039) | (49,104) | (63,269) | |
Curtailment | 0 | 0 | (3,267) | |
Settlement | $ (18,000) | 0 | (17,993) | 0 |
Early retirement programs and special separation benefit expense | 1,825 | 0 | 4,606 | |
Total Cost (Benefit) for the Year | (57,214) | (67,097) | (61,930) | |
Defined Benefit Plan, Amounts Recognized in Other Comprehensive Income (Loss) [Abstract] | ||||
Current year actuarial gain (loss) | (180,885) | 147,779 | 222,894 | |
Current year prior service cost | 75 | 0 | 0 | |
Amortization of prior service credit (cost) | (170) | (297) | (320) | |
Recognized net actuarial gain (loss) | 4,410 | 0 | 11,925 | |
Curtailments and settlements | 0 | 17,993 | (51) | |
Total Recognized in Other Comprehensive Income (Before Tax Effects) | (176,570) | 165,475 | 234,448 | |
Total Recognized in Total (Benefit) Cost and Other Comprehensive Income (Before Tax Effects) | (233,784) | 98,378 | 172,518 | |
Supplemental Executive Retirement Plan (SERP) [Member] | ||||
Defined Benefit Plan Disclosure [Line Items] | ||||
Service cost | 858 | 985 | 1,946 | |
Interest cost | 4,233 | 4,384 | 4,550 | |
Amortization of prior service cost (credit) | 455 | 457 | 457 | |
Recognized actuarial loss (gain) | 1,774 | 2,659 | 3,015 | |
Total Cost (Benefit) for the Year | 7,320 | 8,485 | 9,968 | |
Defined Benefit Plan, Amounts Recognized in Other Comprehensive Income (Loss) [Abstract] | ||||
Current year actuarial gain (loss) | 4,041 | 1,120 | (6,544) | |
Amortization of prior service credit (cost) | (455) | (457) | (457) | |
Recognized net actuarial gain (loss) | (1,774) | (2,659) | (3,015) | |
Curtailments and settlements | 0 | 0 | (834) | |
Total Recognized in Other Comprehensive Income (Before Tax Effects) | 1,812 | (1,996) | (10,850) | |
Total Recognized in Total (Benefit) Cost and Other Comprehensive Income (Before Tax Effects) | 9,132 | 6,489 | (882) | |
Other Postretirement Plans [Member] | ||||
Defined Benefit Plan Disclosure [Line Items] | ||||
Service cost | 1,028 | 1,386 | 1,331 | |
Interest cost | 779 | 1,230 | 1,299 | |
Amortization of prior service cost (credit) | (148) | (335) | (502) | |
Recognized actuarial loss (gain) | (3,891) | (1,502) | (996) | |
Total Cost (Benefit) for the Year | (2,232) | 779 | 1,132 | |
Defined Benefit Plan, Amounts Recognized in Other Comprehensive Income (Loss) [Abstract] | ||||
Current year actuarial gain (loss) | (2,830) | (14,984) | (5,296) | |
Amortization of prior service credit (cost) | 148 | 335 | 502 | |
Recognized net actuarial gain (loss) | 3,891 | 1,502 | 996 | |
Total Recognized in Other Comprehensive Income (Before Tax Effects) | 1,209 | (13,147) | (3,798) | |
Total Recognized in Total (Benefit) Cost and Other Comprehensive Income (Before Tax Effects) | $ (1,023) | $ (12,368) | $ (2,666) |
Pension and Postretirement Plans (Key Assumptions - Cost) (Details 6) - Periodic Cost [Member] |
6 Months Ended | 12 Months Ended | |||||||
---|---|---|---|---|---|---|---|---|---|
Dec. 31, 2015 |
[1] | Jun. 30, 2015 |
[1] | Dec. 31, 2017 |
Dec. 31, 2016 |
Dec. 31, 2015 |
|||
Pension Plans [Member] | |||||||||
Defined Benefit Plan Disclosure [Line Items] | |||||||||
Discount rate (percent) | 4.40% | 4.00% | 4.10% | 4.30% | |||||
Expected return on plan assets (percent) | 6.25% | 6.50% | 6.50% | ||||||
Rate of compensation increase (percent) | 4.00% | 4.00% | |||||||
Pension Plans [Member] | Minimum [Member] | |||||||||
Defined Benefit Plan Disclosure [Line Items] | |||||||||
Rate of compensation increase (percent) | 1.00% | ||||||||
Pension Plans [Member] | Maximum [Member] | |||||||||
Defined Benefit Plan Disclosure [Line Items] | |||||||||
Rate of compensation increase (percent) | 5.00% | ||||||||
Supplemental Executive Retirement Plan (SERP) [Member] | |||||||||
Defined Benefit Plan Disclosure [Line Items] | |||||||||
Discount rate (percent) | 4.40% | 4.00% | 4.10% | 4.30% | |||||
Expected return on plan assets (percent) | 0.00% | 0.00% | 0.00% | ||||||
Rate of compensation increase (percent) | 4.00% | 4.00% | |||||||
Supplemental Executive Retirement Plan (SERP) [Member] | Minimum [Member] | |||||||||
Defined Benefit Plan Disclosure [Line Items] | |||||||||
Rate of compensation increase (percent) | 1.00% | ||||||||
Supplemental Executive Retirement Plan (SERP) [Member] | Maximum [Member] | |||||||||
Defined Benefit Plan Disclosure [Line Items] | |||||||||
Rate of compensation increase (percent) | 5.00% | ||||||||
|
Pension and Postretirement Plans (Accumulated Other Comprehensive Income) (Details 7) - USD ($) $ in Thousands |
Dec. 31, 2017 |
Dec. 31, 2016 |
---|---|---|
Defined Benefit Plan Disclosure [Line Items] | ||
Net amount | $ (334,536) | $ (170,830) |
Pension Plans [Member] | ||
Defined Benefit Plan Disclosure [Line Items] | ||
Unrecognized actuarial (gain) loss | (461,779) | (285,304) |
Unrecognized prior service cost | 270 | 365 |
Gross amount | (461,509) | (284,939) |
Deferred tax liability (asset) | 124,607 | 113,976 |
Net amount | (336,902) | (170,963) |
Supplemental Executive Retirement Plan (SERP) [Member] | ||
Defined Benefit Plan Disclosure [Line Items] | ||
Unrecognized actuarial (gain) loss | 27,225 | 24,958 |
Unrecognized prior service cost | 320 | 775 |
Gross amount | 27,545 | 25,733 |
Deferred tax liability (asset) | (7,437) | (10,293) |
Net amount | 20,108 | 15,440 |
Other Postretirement Plans [Member] | ||
Defined Benefit Plan Disclosure [Line Items] | ||
Unrecognized actuarial (gain) loss | (24,125) | (25,186) |
Unrecognized prior service cost | (178) | (326) |
Gross amount | (24,303) | (25,512) |
Deferred tax liability (asset) | 6,561 | 10,205 |
Net amount | $ (17,742) | $ (15,307) |
Pension and Postretirement Plans (Future Amortization of Net Periodic Cost) (Details 8) $ in Thousands |
Dec. 31, 2017
USD ($)
|
---|---|
Pension Plans [Member] | |
Defined Benefit Plan Disclosure [Line Items] | |
Actuarial (gain) loss recognition | $ (4,236) |
Prior service cost (credit) recognition | 148 |
Supplemental Executive Retirement Plan (SERP) [Member] | |
Defined Benefit Plan Disclosure [Line Items] | |
Actuarial (gain) loss recognition | 2,217 |
Prior service cost (credit) recognition | 311 |
Other Postretirement Plans [Member] | |
Defined Benefit Plan Disclosure [Line Items] | |
Actuarial (gain) loss recognition | (3,686) |
Prior service cost (credit) recognition | $ (175) |
Pension and Postretirement Plans (Asset Allocation) (Details 9) - Pension Plans [Member] |
Dec. 31, 2017 |
Dec. 31, 2016 |
---|---|---|
Defined Benefit Plan Disclosure [Line Items] | ||
Defined Benefit Plan Assets Allocation (Percent) | 100.00% | 100.00% |
Fixed income securities [Member] | U.S. [Member] | ||
Defined Benefit Plan Disclosure [Line Items] | ||
Defined Benefit Plan Assets Allocation (Percent) | 11.00% | 11.00% |
Equity securities [Member] | U.S. [Member] | ||
Defined Benefit Plan Disclosure [Line Items] | ||
Defined Benefit Plan Assets Allocation (Percent) | 53.00% | 53.00% |
Equity securities [Member] | International [Member] | ||
Defined Benefit Plan Disclosure [Line Items] | ||
Defined Benefit Plan Assets Allocation (Percent) | 6.00% | 6.00% |
Equity funds [Member] | U.S. [Member] | ||
Defined Benefit Plan Disclosure [Line Items] | ||
Defined Benefit Plan Assets Allocation (Percent) | 30.00% | 30.00% |
Pension and Postretirement Plans (Fair Value of Pension Plan Assets) (Details 10) - USD ($) $ in Thousands |
Dec. 31, 2017 |
Dec. 31, 2016 |
Dec. 31, 2015 |
---|---|---|---|
Pension Plan [Member] | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Pension plan assets at fair value | $ 2,343,471 | $ 2,042,490 | $ 2,234,268 |
Fair Value, Measurements, Recurring [Member] | Pension Plan [Member] | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Pension plan assets at fair value | 2,343,471 | 2,042,490 | |
Cash equivalents and other short-term investments [Member] | Fair Value, Measurements, Recurring [Member] | Pension Plan [Member] | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Pension plan assets at fair value | 255,515 | 223,448 | |
Equity securities [Member] | Fair Value, Measurements, Recurring [Member] | U.S. [Member] | Pension Plan [Member] | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Pension plan assets at fair value | 1,242,139 | 1,074,528 | |
Equity securities [Member] | Fair Value, Measurements, Recurring [Member] | International [Member] | Pension Plan [Member] | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Pension plan assets at fair value | 138,640 | 120,735 | |
Equity funds [Member] | Fair Value, Measurements, Recurring [Member] | U.S. [Member] | Pension Plan [Member] | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Pension plan assets at fair value | 706,202 | 622,865 | |
Total investments [Member] | Fair Value, Measurements, Recurring [Member] | Pension Plan [Member] | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Pension plan assets at fair value | 2,342,496 | 2,041,576 | |
Receivables [Member] | Fair Value, Measurements, Recurring [Member] | Pension Plan [Member] | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Pension plan assets at fair value | 975 | 914 | |
Level 1 [Member] | Cash equivalents and other short-term investments [Member] | Fair Value, Measurements, Recurring [Member] | Pension Plan [Member] | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Pension plan assets at fair value | 73,877 | 61,438 | |
Level 1 [Member] | Equity securities [Member] | Fair Value, Measurements, Recurring [Member] | U.S. [Member] | Pension Plan [Member] | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Pension plan assets at fair value | 1,242,139 | 1,074,528 | |
Level 1 [Member] | Equity securities [Member] | Fair Value, Measurements, Recurring [Member] | International [Member] | Pension Plan [Member] | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Pension plan assets at fair value | 138,640 | 120,735 | |
Level 1 [Member] | Equity funds [Member] | Fair Value, Measurements, Recurring [Member] | U.S. [Member] | Pension Plan [Member] | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Pension plan assets at fair value | 0 | 0 | |
Level 1 [Member] | Total investments [Member] | Fair Value, Measurements, Recurring [Member] | Pension Plan [Member] | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Pension plan assets at fair value | 1,454,656 | 1,256,701 | |
Level 2 [Member] | Cash equivalents and other short-term investments [Member] | Fair Value, Measurements, Recurring [Member] | Pension Plan [Member] | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Pension plan assets at fair value | 181,638 | 162,010 | |
Level 2 [Member] | Equity securities [Member] | Fair Value, Measurements, Recurring [Member] | U.S. [Member] | Pension Plan [Member] | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Pension plan assets at fair value | 0 | 0 | |
Level 2 [Member] | Equity securities [Member] | Fair Value, Measurements, Recurring [Member] | International [Member] | Pension Plan [Member] | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Pension plan assets at fair value | 0 | 0 | |
Level 2 [Member] | Equity funds [Member] | Fair Value, Measurements, Recurring [Member] | U.S. [Member] | Pension Plan [Member] | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Pension plan assets at fair value | 0 | 0 | |
Level 2 [Member] | Total investments [Member] | Fair Value, Measurements, Recurring [Member] | Pension Plan [Member] | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Pension plan assets at fair value | 181,638 | 162,010 | |
Level 3 [Member] | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Pension plan assets at fair value | 706,202 | 622,865 | $ 0 |
Level 3 [Member] | Cash equivalents and other short-term investments [Member] | Fair Value, Measurements, Recurring [Member] | Pension Plan [Member] | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Pension plan assets at fair value | 0 | 0 | |
Level 3 [Member] | Equity securities [Member] | Fair Value, Measurements, Recurring [Member] | U.S. [Member] | Pension Plan [Member] | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Pension plan assets at fair value | 0 | 0 | |
Level 3 [Member] | Equity securities [Member] | Fair Value, Measurements, Recurring [Member] | International [Member] | Pension Plan [Member] | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Pension plan assets at fair value | 0 | 0 | |
Level 3 [Member] | Equity funds [Member] | Fair Value, Measurements, Recurring [Member] | U.S. [Member] | Pension Plan [Member] | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Pension plan assets at fair value | 706,202 | 622,865 | |
Level 3 [Member] | Total investments [Member] | Fair Value, Measurements, Recurring [Member] | Pension Plan [Member] | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Pension plan assets at fair value | $ 706,202 | $ 622,865 |
Pension and Postretirement Plans (Reconciliation of Change in Pension Plan Assets Fair Value Using Level 3 Inputs) (Details 11) - Level 3 [Member] - USD ($) $ in Thousands |
12 Months Ended | |
---|---|---|
Dec. 31, 2017 |
Dec. 31, 2016 |
|
Defined Benefit Plan, Change in Fair Value of Plan Assets, Level 3 Reconciliation [Roll Forward] | ||
Fair value of assets at beginning of year | $ 622,865 | $ 0 |
Purchases, sales and settlements, net | (50,000) | 574,000 |
Gains relating to assets sold | 6,796 | 0 |
Gains relating to assets still held at year-end | 126,541 | 48,865 |
Fair value of assets at end of year | $ 706,202 | $ 622,865 |
Pension and Postretirement Plans (Assumed Health Care Cost Trend Rates) (Details 12) - Other Postretirement Benefits Plan [Member] $ in Thousands |
12 Months Ended |
---|---|
Dec. 31, 2017
USD ($)
| |
Defined Benefit Plan Disclosure [Line Items] | |
Benefit obligation at end of year, 1% Increase | $ 1,304 |
Benefit obligation at end of year, 1% Decrease | (1,194) |
Service cost plus interest cost, 1% Increase | 177 |
Service cost plus interest cost, 1% Decrease | $ (158) |
Other Non-Operating (Expense) Income (Narrative) (Details) $ in Thousands |
1 Months Ended | 3 Months Ended | 12 Months Ended | |||||||||
---|---|---|---|---|---|---|---|---|---|---|---|---|
Jun. 30, 2016
USD ($)
|
Jan. 31, 2015
USD ($)
|
Dec. 31, 2016
USD ($)
|
Sep. 30, 2016
USD ($)
|
Jun. 30, 2016
USD ($)
|
Mar. 31, 2016
USD ($)
|
Dec. 31, 2015
USD ($)
|
Sep. 30, 2015
USD ($)
|
Jun. 30, 2015
USD ($)
business
|
Dec. 31, 2017
USD ($)
|
Dec. 31, 2016
USD ($)
|
Dec. 31, 2015
USD ($)
|
|
Schedule of Non-Operating (Expense) Income [Line Items] | ||||||||||||
Gain on sale of property, plant and equipment | $ 34,100 | $ 21,400 | $ 0 | $ 34,072 | $ 21,379 | |||||||
Gain on formation of a joint venture | 0 | 3,232 | 5,972 | |||||||||
Gain (loss) on sale of business | $ 2,900 | (569) | 18,931 | (23,335) | ||||||||
Gain on sale of an equity affiliate | 0 | 0 | 4,827 | |||||||||
Education [Member] | ||||||||||||
Schedule of Non-Operating (Expense) Income [Line Items] | ||||||||||||
Gain (loss) on sale of business | $ (26,300) | |||||||||||
Number Of Businesses Disposed | business | 2 | |||||||||||
Residential Healthcare Group Inc [Member] | Residential And Michigan Hospital Joint Venture [Member] | ||||||||||||
Schedule of Non-Operating (Expense) Income [Line Items] | ||||||||||||
Ownership percentage of investment in affiliate | 40.00% | 40.00% | ||||||||||
Gain on formation of a joint venture | $ 3,200 | |||||||||||
Classified Ventures LLC [Member] | ||||||||||||
Schedule of Non-Operating (Expense) Income [Line Items] | ||||||||||||
Favorable out of period adjustment | $ 4,800 | |||||||||||
Gain on sale of an equity affiliate | $ 0 | 0 | $ 4,827 | |||||||||
Celtic Healthcare Inc [Member] | Celtic Healthcare Allegheny Health Network Joint Venture [Member] | ||||||||||||
Schedule of Non-Operating (Expense) Income [Line Items] | ||||||||||||
Ownership percentage of investment in affiliate | 40.00% | |||||||||||
Gain on formation of a joint venture | $ 6,000 | |||||||||||
Celtic Healthcare Allegheny Health Network Joint Venture [Member] | Celtic Healthcare Inc [Member] | ||||||||||||
Schedule of Non-Operating (Expense) Income [Line Items] | ||||||||||||
Ownership percentage of investment in affiliate | 40.00% | |||||||||||
Vocational School Company [Member] | ||||||||||||
Schedule of Non-Operating (Expense) Income [Line Items] | ||||||||||||
Write-downs of cost method investment | $ 12,000 | $ 15,000 | $ 27,000 | |||||||||
Kaplan Corporate and Other [Member] | Colloquy [Member] | Education [Member] | ||||||||||||
Schedule of Non-Operating (Expense) Income [Line Items] | ||||||||||||
Gain (loss) on sale of business | $ 18,900 |
Other Non-Operating Income (Expense) (Details 1) - USD ($) $ in Thousands |
3 Months Ended | 12 Months Ended | |||||||||||
---|---|---|---|---|---|---|---|---|---|---|---|---|---|
Dec. 31, 2017 |
Sep. 30, 2017 |
Jun. 30, 2017 |
Mar. 31, 2017 |
Dec. 31, 2016 |
Sep. 30, 2016 |
Jun. 30, 2016 |
Mar. 31, 2016 |
Dec. 31, 2015 |
Jun. 30, 2015 |
Dec. 31, 2017 |
Dec. 31, 2016 |
Dec. 31, 2015 |
|
Schedule of Non-Operating (Expense) Income [Line Items] | |||||||||||||
Foreign currency gain (losses), net | $ 3,310 | $ (39,890) | $ (15,564) | ||||||||||
Net (loss) gain on sales of businesses | $ 2,900 | (569) | 18,931 | (23,335) | |||||||||
Net losses on sales or write-downs of cost method investments | (184) | (28,571) | (1,124) | ||||||||||
Gain on sale of property, plant and equipment | $ 34,100 | $ 21,400 | 0 | 34,072 | 21,379 | ||||||||
Gain on formation of a joint venture | 0 | 3,232 | 5,972 | ||||||||||
Gain on sale of Classified Ventures | 0 | 0 | 4,827 | ||||||||||
Net losses on sales or write-down of marketable equity securities | 0 | (1,791) | (14) | ||||||||||
Other, net | 1,684 | 1,375 | (764) | ||||||||||
Other income (expense), net | $ (2,640) | $ 1,963 | $ 4,069 | $ 849 | $ (28,513) | $ (18,225) | $ 19,000 | $ 15,096 | 4,241 | (12,642) | (8,623) | ||
Classified Ventures LLC [Member] | |||||||||||||
Schedule of Non-Operating (Expense) Income [Line Items] | |||||||||||||
Gain on sale of Classified Ventures | $ 0 | $ 0 | $ 4,827 |
Accumulated Other Comprehensive Income (Loss) (Components of OCI) (Details 1) - USD ($) $ in Thousands |
12 Months Ended | |||||
---|---|---|---|---|---|---|
Dec. 31, 2017 |
Dec. 31, 2016 |
Dec. 31, 2015 |
||||
Other Comprehensive Income (Loss) [Line Items] | ||||||
Other Comprehensive Income (Loss), Before Tax | $ 319,059 | $ (115,429) | $ (222,402) | |||
Other Comprehensive Income (Loss), Income Tax | (90,923) | 37,235 | 83,602 | |||
Other Comprehensive Income (Loss), Net of Tax | 228,136 | (78,194) | (138,800) | |||
Foreign Currency Translation Adjustment [Member] | ||||||
Other Comprehensive Income (Loss) [Line Items] | ||||||
Other Comprehensive Income (Loss), before Reclassifications, before Tax | 33,175 | (18,898) | ||||
Other Comprehensive Income (Loss) before Reclassifications, Tax | 0 | 0 | ||||
Other Comprehensive Income (Loss), before Reclassifications, Net of Tax | 33,175 | (22,149) | (18,898) | |||
Reclassification from Accumulated Other Comprehensive Income, Current Period, before Tax | 137 | 5,501 | ||||
Reclassification from AOCI, Current Period, Tax | 0 | 0 | ||||
Reclassification from Accumulated Other Comprehensive Income, Current Period, Net of Tax | 137 | 0 | 5,501 | |||
Other Comprehensive Income (Loss), Before Tax | 33,312 | (22,149) | (13,397) | |||
Other Comprehensive Income (Loss), Income Tax | 0 | 0 | 0 | |||
Other Comprehensive Income (Loss), Net of Tax | 33,312 | (22,149) | (13,397) | |||
Unrealized Gains (Losses) on Available- for- Sale Securities [Member] | ||||||
Other Comprehensive Income (Loss) [Line Items] | ||||||
Other Comprehensive Income (Loss), before Reclassifications, before Tax | 55,507 | 10,620 | ||||
Other Comprehensive Income (Loss) before Reclassifications, Tax | (22,203) | (4,248) | ||||
Other Comprehensive Income (Loss), before Reclassifications, Net of Tax | 67,252 | 33,304 | 6,372 | |||
Reclassification from Accumulated Other Comprehensive Income, Current Period, before Tax | 1,879 | (4) | ||||
Reclassification from AOCI, Current Period, Tax | (752) | 2 | ||||
Reclassification from Accumulated Other Comprehensive Income, Current Period, Net of Tax | 0 | 1,127 | (2) | |||
Other Comprehensive Income (Loss), Before Tax | 112,086 | 57,386 | 10,616 | |||
Other Comprehensive Income (Loss), Income Tax | (44,834) | (22,955) | (4,246) | |||
Other Comprehensive Income (Loss), Net of Tax | 67,252 | 34,431 | 6,370 | |||
Pension and Other Postretirement Plans [Member] | ||||||
Other Comprehensive Income (Loss) [Line Items] | ||||||
Other Comprehensive Income (Loss), before Reclassifications, Net of Tax | 131,108 | (80,349) | ||||
Reclassification from Accumulated Other Comprehensive Income, Current Period, before Tax | (6,050) | (16,417) | (9,580) | |||
Reclassification from AOCI, Current Period, Tax | 2,421 | 6,567 | 3,831 | |||
Reclassification from Accumulated Other Comprehensive Income, Current Period, Net of Tax | (3,629) | (9,850) | (5,749) | |||
Other Comprehensive Income (Loss), Before Tax | 173,549 | (150,332) | (219,800) | |||
Other Comprehensive Income (Loss), Income Tax | (46,070) | 60,133 | 87,919 | |||
Other Comprehensive Income (Loss), Net of Tax | 127,479 | (90,199) | (131,881) | |||
Net Actuarial Loss [Member] | ||||||
Other Comprehensive Income (Loss) [Line Items] | ||||||
Other Comprehensive Income (Loss), before Reclassifications, before Tax | 179,674 | (133,915) | (211,054) | |||
Other Comprehensive Income (Loss) before Reclassifications, Tax | (48,511) | 53,566 | 84,421 | |||
Other Comprehensive Income (Loss), before Reclassifications, Net of Tax | 131,163 | (80,349) | (126,633) | |||
Reclassification from Accumulated Other Comprehensive Income, Current Period, before Tax | [1] | (6,527) | 1,157 | (9,906) | ||
Reclassification from AOCI, Current Period, Tax | 2,612 | (463) | 3,962 | |||
Reclassification from Accumulated Other Comprehensive Income, Current Period, Net of Tax | (3,915) | 694 | (5,944) | |||
Net Prior Service Cost [Member] | ||||||
Other Comprehensive Income (Loss) [Line Items] | ||||||
Other Comprehensive Income (Loss), before Reclassifications, before Tax | (75) | |||||
Other Comprehensive Income (Loss) before Reclassifications, Tax | 20 | |||||
Other Comprehensive Income (Loss), before Reclassifications, Net of Tax | (55) | |||||
Reclassification from Accumulated Other Comprehensive Income, Current Period, before Tax | [1] | 477 | 419 | 275 | ||
Reclassification from AOCI, Current Period, Tax | (191) | (167) | (110) | |||
Reclassification from Accumulated Other Comprehensive Income, Current Period, Net of Tax | 286 | 252 | 165 | |||
Curtailments and settlements Included in Net Income [Member] | ||||||
Other Comprehensive Income (Loss) [Line Items] | ||||||
Reclassification from Accumulated Other Comprehensive Income, Current Period, before Tax | [1] | 0 | (17,993) | 51 | ||
Reclassification from AOCI, Current Period, Tax | 7,197 | (21) | ||||
Reclassification from Accumulated Other Comprehensive Income, Current Period, Net of Tax | (10,796) | 30 | ||||
Curtailment And Settlement Included in Distribution [Member] | ||||||
Other Comprehensive Income (Loss) [Line Items] | ||||||
Other Comprehensive Income (Loss), before Reclassifications, before Tax | 834 | |||||
Other Comprehensive Income (Loss) before Reclassifications, Tax | (333) | |||||
Other Comprehensive Income (Loss), before Reclassifications, Net of Tax | 501 | |||||
Cash Flow Hedge [Member] | ||||||
Other Comprehensive Income (Loss) [Line Items] | ||||||
Other Comprehensive Income (Loss), before Reclassifications, Net of Tax | (29) | (290) | ||||
Reclassification from Accumulated Other Comprehensive Income, Current Period, Net of Tax | 122 | 13 | ||||
Other Comprehensive Income (Loss), Before Tax | 112 | (334) | 179 | |||
Other Comprehensive Income (Loss), Income Tax | (19) | 57 | (71) | |||
Other Comprehensive Income (Loss), Net of Tax | $ 93 | $ (277) | $ 108 | |||
|
Accumulated Other Comprehensive Income (Loss) (AOCI balances) (Details 2) - USD ($) $ in Thousands |
12 Months Ended | ||
---|---|---|---|
Dec. 31, 2017 |
Dec. 31, 2016 |
Dec. 31, 2015 |
|
AOCI Including Portion Attributable to Noncontrolling Interest, Net of Tax [Roll Forward] | |||
As of | $ 2,452,941 | $ 2,490,698 | $ 3,140,775 |
Other Comprehensive Income (Loss), Net of Tax | 228,136 | (78,194) | (138,800) |
Reclassification of stranded tax effects to retained earnings as a result of tax reform | 0 | ||
As of | 2,915,145 | 2,452,941 | 2,490,698 |
AOCI Including Portion Attributable to Noncontrolling Interest [Member] | |||
AOCI Including Portion Attributable to Noncontrolling Interest, Net of Tax [Roll Forward] | |||
As of | 236,486 | 314,680 | |
Other comprehensive (loss) income before reclassifications | 231,506 | (69,484) | |
Net amount reclassified from accumulated other comprehensive income | (3,370) | (8,710) | |
Other Comprehensive Income (Loss), Net of Tax | 228,136 | (78,194) | |
Reclassification of stranded tax effects to retained earnings as a result of tax reform | 70,933 | ||
As of | 535,555 | 236,486 | 314,680 |
Foreign Currency Translation Adjustments [Member] | |||
AOCI Including Portion Attributable to Noncontrolling Interest, Net of Tax [Roll Forward] | |||
As of | (26,998) | (4,849) | |
Other comprehensive (loss) income before reclassifications | 33,175 | (22,149) | (18,898) |
Net amount reclassified from accumulated other comprehensive income | 137 | 0 | 5,501 |
Other Comprehensive Income (Loss), Net of Tax | 33,312 | (22,149) | (13,397) |
Reclassification of stranded tax effects to retained earnings as a result of tax reform | 0 | ||
As of | 6,314 | (26,998) | (4,849) |
Unrealized Gains (Losses) on Available- for- Sale Securities [Member] | |||
AOCI Including Portion Attributable to Noncontrolling Interest, Net of Tax [Roll Forward] | |||
As of | 92,931 | 58,500 | |
Other comprehensive (loss) income before reclassifications | 67,252 | 33,304 | 6,372 |
Net amount reclassified from accumulated other comprehensive income | 0 | 1,127 | (2) |
Other Comprehensive Income (Loss), Net of Tax | 67,252 | 34,431 | 6,370 |
Reclassification of stranded tax effects to retained earnings as a result of tax reform | 34,706 | ||
As of | 194,889 | 92,931 | 58,500 |
Unrealized Gain (Loss) on Pensions and Other Postretirement Plans [Member] | |||
AOCI Including Portion Attributable to Noncontrolling Interest, Net of Tax [Roll Forward] | |||
As of | 170,830 | 261,029 | |
Other comprehensive (loss) income before reclassifications | 131,108 | (80,349) | |
Net amount reclassified from accumulated other comprehensive income | (3,629) | (9,850) | (5,749) |
Other Comprehensive Income (Loss), Net of Tax | 127,479 | (90,199) | (131,881) |
Reclassification of stranded tax effects to retained earnings as a result of tax reform | 36,227 | ||
As of | 334,536 | 170,830 | 261,029 |
Cash Flow Hedge [Member] | |||
AOCI Including Portion Attributable to Noncontrolling Interest, Net of Tax [Roll Forward] | |||
As of | (277) | 0 | |
Other comprehensive (loss) income before reclassifications | (29) | (290) | |
Net amount reclassified from accumulated other comprehensive income | 122 | 13 | |
Other Comprehensive Income (Loss), Net of Tax | 93 | (277) | 108 |
Reclassification of stranded tax effects to retained earnings as a result of tax reform | 0 | ||
As of | $ (184) | $ (277) | $ 0 |
Accumulated Other Comprehensive Income (Loss) (Reclassifications out of AOCI) (Details 3) - USD ($) $ in Thousands |
3 Months Ended | 12 Months Ended | ||||||||||||
---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
Dec. 31, 2017 |
Sep. 30, 2017 |
Jun. 30, 2017 |
Mar. 31, 2017 |
Dec. 31, 2016 |
Sep. 30, 2016 |
Jun. 30, 2016 |
Mar. 31, 2016 |
Dec. 31, 2017 |
Dec. 31, 2016 |
Dec. 31, 2015 |
||||
Reclassification Adjustment Out Of Accumulated Other Comprehensive Income [Line Items] | ||||||||||||||
Other (expense) income, net | $ 2,640 | $ (1,963) | $ (4,069) | $ (849) | $ 28,513 | $ 18,225 | $ (19,000) | $ (15,096) | $ (4,241) | $ 12,642 | $ 8,623 | |||
Interest expense | 8,103 | 8,619 | 9,035 | 8,129 | 10,857 | 8,614 | 7,971 | 7,948 | 33,886 | 35,390 | 32,654 | |||
(Benefit from) Provision for Income Taxes | (159,700) | 13,400 | 23,900 | 2,700 | 27,200 | 7,800 | 23,800 | 22,400 | (119,700) | 81,200 | 20,500 | |||
Income from continuing operations before income taxes | $ (54,860) | $ (38,244) | $ (65,899) | $ (23,786) | $ (64,118) | $ (40,926) | $ (84,999) | $ (60,615) | (182,789) | (250,658) | 120,890 | |||
Income Net of Tax | (302,489) | (169,458) | 141,390 | |||||||||||
Reclassification out of Accumulated Other Comprehensive Income [Member] | ||||||||||||||
Reclassification Adjustment Out Of Accumulated Other Comprehensive Income [Line Items] | ||||||||||||||
Income Net of Tax | (3,370) | (8,710) | (171) | |||||||||||
Foreign Currency Translation Adjustments [Member] | ||||||||||||||
Reclassification Adjustment Out Of Accumulated Other Comprehensive Income [Line Items] | ||||||||||||||
Reclassifications, before tax | 137 | 5,501 | ||||||||||||
Provision for income taxes | 0 | 0 | ||||||||||||
Reclassifications, net of tax | 137 | 0 | 5,501 | |||||||||||
Foreign Currency Translation Adjustments [Member] | Reclassification out of Accumulated Other Comprehensive Income [Member] | ||||||||||||||
Reclassification Adjustment Out Of Accumulated Other Comprehensive Income [Line Items] | ||||||||||||||
Other (expense) income, net | 137 | 0 | 5,501 | |||||||||||
Unrealized Gains (Losses) on Available- for- Sale Securities [Member] | ||||||||||||||
Reclassification Adjustment Out Of Accumulated Other Comprehensive Income [Line Items] | ||||||||||||||
Reclassifications, before tax | 1,879 | (4) | ||||||||||||
Provision for income taxes | (752) | 2 | ||||||||||||
Reclassifications, net of tax | 0 | 1,127 | (2) | |||||||||||
Unrealized Gains (Losses) 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 (expense) income, net | 0 | 1,879 | (4) | |||||||||||
(Benefit from) Provision for Income Taxes | 0 | (752) | 2 | |||||||||||
Income Net of Tax | 0 | 1,127 | (2) | |||||||||||
Pension and Other Postretirement Plans [Member] | ||||||||||||||
Reclassification Adjustment Out Of Accumulated Other Comprehensive Income [Line Items] | ||||||||||||||
Reclassifications, before tax | (6,050) | (16,417) | (9,580) | |||||||||||
Provision for income taxes | 2,421 | 6,567 | 3,831 | |||||||||||
Reclassifications, net of tax | (3,629) | (9,850) | (5,749) | |||||||||||
Net Actuarial Loss [Member] | ||||||||||||||
Reclassification Adjustment Out Of Accumulated Other Comprehensive Income [Line Items] | ||||||||||||||
Reclassifications, before tax | [1] | (6,527) | 1,157 | (9,906) | ||||||||||
Provision for income taxes | 2,612 | (463) | 3,962 | |||||||||||
Reclassifications, net of tax | (3,915) | 694 | (5,944) | |||||||||||
Net Prior Service Cost [Member] | ||||||||||||||
Reclassification Adjustment Out Of Accumulated Other Comprehensive Income [Line Items] | ||||||||||||||
Reclassifications, before tax | [1] | 477 | 419 | 275 | ||||||||||
Provision for income taxes | (191) | (167) | (110) | |||||||||||
Reclassifications, net of tax | 286 | 252 | 165 | |||||||||||
Curtailment (Gains) Losses Included in Net Income [Member] | ||||||||||||||
Reclassification Adjustment Out Of Accumulated Other Comprehensive Income [Line Items] | ||||||||||||||
Reclassifications, before tax | [1] | 0 | (17,993) | 51 | ||||||||||
Provision for income taxes | 7,197 | (21) | ||||||||||||
Reclassifications, net of tax | (10,796) | 30 | ||||||||||||
Cash Flow Hedge [Member] | ||||||||||||||
Reclassification Adjustment Out Of Accumulated Other Comprehensive Income [Line Items] | ||||||||||||||
Reclassifications, net of tax | 122 | 13 | ||||||||||||
Cash Flow Hedge [Member] | Reclassification out of Accumulated Other Comprehensive Income [Member] | ||||||||||||||
Reclassification Adjustment Out Of Accumulated Other Comprehensive Income [Line Items] | ||||||||||||||
Interest expense | 152 | 16 | 132 | |||||||||||
(Benefit from) Provision for Income Taxes | (30) | (3) | (53) | |||||||||||
Income Net of Tax | $ 122 | $ 13 | $ 79 | |||||||||||
|
Leases and Other Commitments (Narrative) (Details) - USD ($) $ in Millions |
12 Months Ended | ||
---|---|---|---|
Dec. 31, 2017 |
Dec. 31, 2016 |
Dec. 31, 2015 |
|
Operating Leased Assets [Line Items] | |||
Future minimum sublease payments due | $ 78.0 | ||
Rent expense for operating leases | 81.1 | $ 86.9 | $ 102.6 |
Sublease rental income | 14.8 | $ 14.3 | $ 6.7 |
Secondarily liable leases | 33.5 | ||
Television Broadcasting [Member] | |||
Operating Leased Assets [Line Items] | |||
Long-term programming purchase commitment | $ 21.7 |
Leases and Other Commitments (Details 1) $ in Thousands |
Dec. 31, 2017
USD ($)
|
---|---|
Leases And Other Commitments [Abstract] | |
Future minimum lease payments for 2018 | $ 97,935 |
Future minimum lease payments for 2019 | 88,298 |
Future minimum lease payments for 2020 | 70,500 |
Future minimum lease payments for 2021 | 56,693 |
Future minimum lease payments for 2022 | 43,976 |
Future minimum lease payments after 2022 | 121,875 |
Operating leases, future minimum payments due, total | $ 479,277 |
Contingencies (Details) £ in Millions |
1 Months Ended | 3 Months Ended | 12 Months Ended | ||||||
---|---|---|---|---|---|---|---|---|---|
Mar. 11, 2015
claim
|
Aug. 17, 2011
claim
Complaint
|
Jul. 22, 2011
USD ($)
|
Aug. 31, 2017
USD ($)
conditions
|
Dec. 31, 2017
USD ($)
claim
program_review
|
Dec. 31, 2017
USD ($)
claim
program_review
|
Dec. 31, 2016
USD ($)
|
Dec. 31, 2015
USD ($)
|
Dec. 31, 2017
GBP (£)
claim
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 | claim | 0 | 0 | 0 | ||||||
Deferred Charges and Other Assets | $ 102,046,000 | $ 102,046,000 | $ 73,096,000 | ||||||
Portion of regulations under 90/10 rule | an institution would lose its eligibility to participate in Title IV programs for a period of at least two fiscal years if the institution derives more than 90% of its receipts from Title IV programs, as calculated on a cash basis in accordance with the Higher Education Act and applicable ED regulations, in each of two consecutive fiscal years. An institution with Title IV receipts exceeding 90% for a single fiscal year would be placed on provisional certification and may be subject to other enforcement measures. | ||||||||
Celtic Healthcare Allegheny Health Network Joint Venture [Member] | |||||||||
Loss Contingencies [Line Items] | |||||||||
Number of conditions out of compliance | conditions | 4 | ||||||||
Number of days of noncompliance | 31 days | ||||||||
Maximum [Member] | |||||||||
Loss Contingencies [Line Items] | |||||||||
Loss contingency, estimate of possible loss | $ 30,000,000 | $ 30,000,000 | |||||||
Maximum [Member] | Celtic Healthcare Allegheny Health Network Joint Venture [Member] | |||||||||
Loss Contingencies [Line Items] | |||||||||
Amount of penalties per day or per instance of noncompliance | $ 10,000 | ||||||||
KHE's Broomall, PA location [Member] | |||||||||
Loss Contingencies [Line Items] | |||||||||
Amount payable under agreement | $ 1,600,000 | ||||||||
Kaplan University [Member] | Maximum [Member] | |||||||||
Loss Contingencies [Line Items] | |||||||||
Percentage of receipts derived from Title IV | 74.00% | 77.00% | |||||||
Education [Member] | Diaz Case [Member] | |||||||||
Loss Contingencies [Line Items] | |||||||||
The number of separate complaints included in the Diaz case that received rulings | Complaint | 3 | ||||||||
Remaining employment claim in the Diaz complaint | claim | 1 | ||||||||
Education [Member] | Diaz Claims [Member] | |||||||||
Loss Contingencies [Line Items] | |||||||||
Number of claims affirmed for dismissal by US Court of Appeals | claim | 3 | ||||||||
Number of claims appealed | claim | 4 | ||||||||
Higher Education [Member] | |||||||||
Loss Contingencies [Line Items] | |||||||||
Percentage of receipts from Title IV programs | 90.00% | 90.00% | 90.00% | ||||||
Higher Education [Member] | Education [Member] | |||||||||
Loss Contingencies [Line Items] | |||||||||
Amount Of Estimated Unreturned Title IV Funds From Prior Periods | $ 8,400,000 | ||||||||
Education division revenue derived from financial aid received by students under Title IV programs | $ 374,000,000 | $ 437,000,000 | $ 628,000,000 | ||||||
Higher Education [Member] | Sale Of KHE Campuses Business [Member] | Education [Member] | |||||||||
Loss Contingencies [Line Items] | |||||||||
Number of pending ED program reviews | program_review | 2 | 2 | 2 | ||||||
Kaplan International [Member] | UK Pathways [Member] | Her Majesty's Revenue and Customs (HMRC) [Member] | |||||||||
Loss Contingencies [Line Items] | |||||||||
Loss contingency, estimate of possible loss | £ | £ 10.9 | ||||||||
Deferred Charges and Other Assets | £ | £ 10.9 |
Business Segments (Narrative) (Details) $ in Thousands |
1 Months Ended | 3 Months Ended | 12 Months Ended | ||||||||||||||
---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
Jan. 31, 2015
school
|
Mar. 31, 2018
Segment
|
Dec. 31, 2017
USD ($)
TelevisionStation
|
Sep. 30, 2017
USD ($)
|
Jun. 30, 2017
USD ($)
|
Mar. 31, 2017
USD ($)
|
Dec. 31, 2016
USD ($)
|
Sep. 30, 2016
USD ($)
|
Jun. 30, 2016
USD ($)
|
Mar. 31, 2016
USD ($)
|
Sep. 30, 2015
USD ($)
|
Jun. 30, 2015
USD ($)
|
Sep. 30, 2014
school
|
Dec. 31, 2017
USD ($)
TelevisionStation
Segment
|
Dec. 31, 2016
USD ($)
|
Dec. 31, 2015
USD ($)
|
Sep. 03, 2015
campus
|
|
Segment Reporting Information [Line Items] | |||||||||||||||||
Number of reportable segments | Segment | 6 | ||||||||||||||||
Operating Revenues | $ 675,817 | $ 657,225 | $ 676,087 | $ 582,717 | $ 629,579 | $ 621,638 | $ 628,933 | $ 601,740 | $ 2,591,846 | $ 2,481,890 | $ 2,586,114 | ||||||
Television Broadcasting [Member] | |||||||||||||||||
Segment Reporting Information [Line Items] | |||||||||||||||||
Number of television broadcast stations owned | TelevisionStation | 7 | 7 | |||||||||||||||
Education [Member] | |||||||||||||||||
Segment Reporting Information [Line Items] | |||||||||||||||||
Restructuring costs | $ 9,065 | 11,852 | 40,639 | ||||||||||||||
Accrued restructuring costs | $ 8,500 | 11,800 | 8,500 | 11,800 | |||||||||||||
Non U.S. [Member] | |||||||||||||||||
Segment Reporting Information [Line Items] | |||||||||||||||||
Operating Revenues | 637,000 | 624,000 | 660,000 | ||||||||||||||
Foreign assets | $ 89,000 | $ 67,000 | 89,000 | 67,000 | |||||||||||||
UNITED KINGDOM | Education [Member] | |||||||||||||||||
Segment Reporting Information [Line Items] | |||||||||||||||||
Operating Revenues | 320,000 | 312,000 | 319,000 | ||||||||||||||
Higher Education [Member] | Education [Member] | |||||||||||||||||
Segment Reporting Information [Line Items] | |||||||||||||||||
Restructuring costs | 1,400 | 7,100 | 12,400 | ||||||||||||||
Other long-lived assets impairment charge | $ 6,900 | ||||||||||||||||
Higher Education [Member] | Education [Member] | KHE Campuses [Member] | |||||||||||||||||
Segment Reporting Information [Line Items] | |||||||||||||||||
Number of nationally accredited ground campuses sold | campus | 38 | ||||||||||||||||
Test Preparation [Member] | Education [Member] | |||||||||||||||||
Segment Reporting Information [Line Items] | |||||||||||||||||
Restructuring costs | 4,300 | ||||||||||||||||
Kaplan International [Member] | Education [Member] | |||||||||||||||||
Segment Reporting Information [Line Items] | |||||||||||||||||
Restructuring costs | $ 2,900 | $ 4,700 | 1,300 | ||||||||||||||
Kaplan International [Member] | Education [Member] | Kaplan China [Member] | |||||||||||||||||
Segment Reporting Information [Line Items] | |||||||||||||||||
Number of schools sold | school | 1 | 3 | |||||||||||||||
Kaplan Corporate and Other [Member] | Education [Member] | |||||||||||||||||
Segment Reporting Information [Line Items] | |||||||||||||||||
Restructuring costs | $ 25,700 | ||||||||||||||||
Periods from 2011 to Q2 2015 [Member] | Test Preparation [Member] | Education [Member] | |||||||||||||||||
Segment Reporting Information [Line Items] | |||||||||||||||||
Immaterial Error Correction Amount | $ 3,000 | ||||||||||||||||
Subsequent Event [Member] | |||||||||||||||||
Segment Reporting Information [Line Items] | |||||||||||||||||
Number of reportable segments | Segment | 6 |
Business Segments (Restructuring Costs) (Details 1) - Education [Member] - USD ($) $ in Thousands |
12 Months Ended | ||
---|---|---|---|
Dec. 31, 2017 |
Dec. 31, 2016 |
Dec. 31, 2015 |
|
Restructuring Cost and Reserve [Line Items] | |||
Accelerated depreciation | $ 339 | $ 1,815 | $ 17,956 |
Lease obligation losses | 0 | 2,694 | 8,240 |
Severance | 6,099 | 5,902 | 14,234 |
Other | 2,627 | 1,441 | 209 |
Total restructuring costs | $ 9,065 | $ 11,852 | $ 40,639 |
Business Segments (Information by Operating Segment) (Details 2) - USD ($) $ in Thousands |
3 Months Ended | 12 Months Ended | |||||||||
---|---|---|---|---|---|---|---|---|---|---|---|
Dec. 31, 2017 |
Sep. 30, 2017 |
Jun. 30, 2017 |
Mar. 31, 2017 |
Dec. 31, 2016 |
Sep. 30, 2016 |
Jun. 30, 2016 |
Mar. 31, 2016 |
Dec. 31, 2017 |
Dec. 31, 2016 |
Dec. 31, 2015 |
|
Segment Reporting Information [Line Items] | |||||||||||
Operating Revenues | $ 675,817 | $ 657,225 | $ 676,087 | $ 582,717 | $ 629,579 | $ 621,638 | $ 628,933 | $ 601,740 | $ 2,591,846 | $ 2,481,890 | $ 2,586,114 |
Income (loss) from operations | 49,459 | 26,950 | 49,741 | 10,253 | 75,790 | 52,328 | 58,556 | 36,195 | 136,403 | 222,869 | (158,140) |
Equity in losses of affiliates, net | (4,697) | (532) | 1,331 | 649 | (7,042) | (1,008) | (891) | 1,004 | (3,249) | (7,937) | (697) |
Interest expense, net | (27,305) | (32,297) | (30,745) | ||||||||
Non-operating pension and postretirement benefit income, net | (17,657) | (17,621) | (18,620) | (18,801) | (33,699) | (15,705) | (15,584) | (15,677) | (72,699) | (80,665) | (77,315) |
Other income (expense), net | (2,640) | 1,963 | 4,069 | 849 | (28,513) | (18,225) | 19,000 | 15,096 | 4,241 | (12,642) | (8,623) |
Income (Loss) from Continuing Operations Before Income Taxes | 54,860 | 38,244 | 65,899 | 23,786 | 64,118 | 40,926 | 84,999 | 60,615 | 182,789 | 250,658 | (120,890) |
Depreciation of property, plant and equipment | 15,984 | 16,002 | 15,871 | 14,652 | 15,717 | 16,097 | 16,045 | 16,761 | 62,509 | 64,620 | 77,906 |
Amortization of Intangible Assets | 12,897 | $ 10,923 | $ 10,531 | $ 6,836 | 7,511 | $ 6,620 | $ 6,278 | $ 6,262 | 41,187 | 26,671 | 19,017 |
Amortization of intangible assets and impairment of goodwill and other long-lived assets | 50,801 | 28,274 | 278,717 | ||||||||
Pension Expense - Service Cost | 18,687 | 20,461 | |||||||||
Pension Expense - Service Cost | 24,404 | ||||||||||
Capital expenditures | 57,080 | 70,712 | 62,033 | ||||||||
Identifiable Assets | 3,216,141 | 3,068,042 | 3,216,141 | 3,068,042 | |||||||
Investments in Marketable equity securities | 536,315 | 424,229 | 536,315 | 424,229 | |||||||
Investments in Affiliates | 128,590 | 58,806 | 128,590 | 58,806 | |||||||
Prepaid Pension Cost | 1,056,777 | 881,593 | 1,056,777 | 881,593 | |||||||
Total Assets | 4,937,823 | 4,432,670 | 4,937,823 | 4,432,670 | |||||||
Operating Segments [Member] | Education [Member] | |||||||||||
Segment Reporting Information [Line Items] | |||||||||||
Operating Revenues | 1,516,776 | 1,598,461 | 1,927,521 | ||||||||
Income (loss) from operations | 77,687 | 95,321 | (218,014) | ||||||||
Depreciation of property, plant and equipment | 32,906 | 41,187 | 61,177 | ||||||||
Amortization of Intangible Assets | 5,162 | 7,516 | 5,523 | ||||||||
Amortization of intangible assets and impairment of goodwill and other long-lived assets | 5,162 | 7,516 | 262,353 | ||||||||
Pension Expense - Service Cost | 9,720 | 11,803 | |||||||||
Pension Expense - Service Cost | 15,070 | ||||||||||
Impairment of goodwill and other long-lived assets | 0 | 0 | 256,830 | ||||||||
Capital expenditures | 27,520 | 26,497 | 42,220 | ||||||||
Identifiable Assets | 1,592,097 | 1,479,267 | 1,592,097 | 1,479,267 | |||||||
Operating Segments [Member] | Education [Member] | Reportable Subsegments [Member] | Kaplan International [Member] | |||||||||||
Segment Reporting Information [Line Items] | |||||||||||
Operating Revenues | 697,999 | 696,362 | 770,273 | ||||||||
Income (loss) from operations | 51,623 | 48,398 | 53,661 | ||||||||
Depreciation of property, plant and equipment | 14,892 | 17,523 | 17,811 | ||||||||
Pension Expense - Service Cost | 264 | 268 | |||||||||
Pension Expense - Service Cost | 424 | ||||||||||
Capital expenditures | 21,667 | 16,252 | 22,673 | ||||||||
Identifiable Assets | 1,115,919 | 950,922 | 1,115,919 | 950,922 | |||||||
Operating Segments [Member] | Education [Member] | Reportable Subsegments [Member] | Higher Education [Member] | |||||||||||
Segment Reporting Information [Line Items] | |||||||||||
Operating Revenues | 431,425 | 501,784 | 757,135 | ||||||||
Income (loss) from operations | 16,719 | 39,196 | 29,896 | ||||||||
Depreciation of property, plant and equipment | 9,117 | 13,816 | 15,324 | ||||||||
Pension Expense - Service Cost | 5,269 | 6,544 | |||||||||
Pension Expense - Service Cost | 9,975 | ||||||||||
Capital expenditures | 2,158 | 3,140 | 8,131 | ||||||||
Identifiable Assets | 231,986 | 278,977 | 231,986 | 278,977 | |||||||
Operating Segments [Member] | Education [Member] | Reportable Subsegments [Member] | Test Preparation [Member] | |||||||||||
Segment Reporting Information [Line Items] | |||||||||||
Operating Revenues | 273,298 | 286,556 | 301,607 | ||||||||
Income (loss) from operations | 11,507 | 9,599 | 16,798 | ||||||||
Depreciation of property, plant and equipment | 5,286 | 6,287 | 9,045 | ||||||||
Pension Expense - Service Cost | 2,755 | 3,072 | |||||||||
Pension Expense - Service Cost | 3,101 | ||||||||||
Capital expenditures | 1,038 | 4,672 | 8,720 | ||||||||
Identifiable Assets | 130,938 | 133,709 | 130,938 | 133,709 | |||||||
Operating Segments [Member] | Education [Member] | Reportable Subsegments [Member] | Professional (U.S.) [Member] | |||||||||||
Segment Reporting Information [Line Items] | |||||||||||
Operating Revenues | 115,839 | 115,263 | 92,490 | ||||||||
Income (loss) from operations | 27,558 | 27,436 | 25,676 | ||||||||
Depreciation of property, plant and equipment | 3,041 | 3,006 | 2,613 | ||||||||
Pension Expense - Service Cost | 913 | 1,076 | |||||||||
Pension Expense - Service Cost | 874 | ||||||||||
Capital expenditures | 2,475 | 2,224 | 2,071 | ||||||||
Identifiable Assets | 91,630 | 94,150 | 91,630 | 94,150 | |||||||
Operating Segments [Member] | Education [Member] | Kaplan Corporate and Other [Member] | |||||||||||
Segment Reporting Information [Line Items] | |||||||||||
Operating Revenues | 294 | 214 | 6,502 | ||||||||
Income (loss) from operations | (29,863) | (29,279) | (344,141) | ||||||||
Depreciation of property, plant and equipment | 570 | 555 | 16,384 | ||||||||
Pension Expense - Service Cost | 519 | 843 | |||||||||
Pension Expense - Service Cost | 696 | ||||||||||
Capital expenditures | 182 | 209 | 625 | ||||||||
Identifiable Assets | 21,624 | 21,509 | 21,624 | 21,509 | |||||||
Operating Segments [Member] | Education [Member] | Intersubsegment Eliminations [Member] | |||||||||||
Segment Reporting Information [Line Items] | |||||||||||
Operating Revenues | (2,079) | (1,718) | (486) | ||||||||
Income (loss) from operations | 143 | (29) | 96 | ||||||||
Operating Segments [Member] | Television Broadcasting [Member] | |||||||||||
Segment Reporting Information [Line Items] | |||||||||||
Operating Revenues | 409,916 | 409,718 | 359,192 | ||||||||
Income (loss) from operations | 139,258 | 202,863 | 167,215 | ||||||||
Depreciation of property, plant and equipment | 12,179 | 9,942 | 9,551 | ||||||||
Amortization of intangible assets and impairment of goodwill and other long-lived assets | 6,349 | 251 | 252 | ||||||||
Pension Expense - Service Cost | 1,942 | 1,714 | |||||||||
Pension Expense - Service Cost | 1,620 | ||||||||||
Capital expenditures | 16,802 | 27,453 | 9,998 | ||||||||
Identifiable Assets | 455,884 | 336,631 | 455,884 | 336,631 | |||||||
Operating Segments [Member] | Healthcare [Member] | |||||||||||
Segment Reporting Information [Line Items] | |||||||||||
Operating Revenues | 154,202 | 146,962 | 135,550 | ||||||||
Income (loss) from operations | (2,569) | 2,799 | 6,233 | ||||||||
Depreciation of property, plant and equipment | 4,583 | 2,805 | 2,836 | ||||||||
Amortization of intangible assets and impairment of goodwill and other long-lived assets | 7,905 | 6,701 | 6,875 | ||||||||
Pension Expense - Service Cost | 665 | 0 | |||||||||
Pension Expense - Service Cost | 0 | ||||||||||
Capital expenditures | 2,987 | 2,954 | 3,226 | ||||||||
Identifiable Assets | 129,856 | 152,908 | 129,856 | 152,908 | |||||||
Operating Segments [Member] | Other Segments [Member] | |||||||||||
Segment Reporting Information [Line Items] | |||||||||||
Operating Revenues | 511,003 | 326,888 | 163,967 | ||||||||
Income (loss) from operations | (19,263) | (24,901) | (19,900) | ||||||||
Depreciation of property, plant and equipment | 11,723 | 9,570 | 3,332 | ||||||||
Amortization of intangible assets and impairment of goodwill and other long-lived assets | 31,385 | 13,806 | 9,237 | ||||||||
Pension Expense - Service Cost | 1,125 | 1,118 | |||||||||
Pension Expense - Service Cost | 964 | ||||||||||
Capital expenditures | 9,771 | 13,093 | 6,278 | ||||||||
Identifiable Assets | 855,399 | 644,027 | 855,399 | 644,027 | |||||||
Corporate office [Member] | |||||||||||
Segment Reporting Information [Line Items] | |||||||||||
Operating Revenues | 0 | 0 | 0 | ||||||||
Income (loss) from operations | (58,710) | (53,213) | (93,674) | ||||||||
Depreciation of property, plant and equipment | 1,118 | 1,116 | 1,010 | ||||||||
Amortization of intangible assets and impairment of goodwill and other long-lived assets | 0 | 0 | 0 | ||||||||
Pension Expense - Service Cost | 5,235 | 5,826 | |||||||||
Pension Expense - Service Cost | 6,750 | ||||||||||
Capital expenditures | 0 | 715 | 311 | ||||||||
Identifiable Assets | $ 182,905 | $ 455,209 | 182,905 | 455,209 | |||||||
Intersegment Elimination [Member] | |||||||||||
Segment Reporting Information [Line Items] | |||||||||||
Operating Revenues | $ (51) | $ (139) | $ (116) |
Summary of Quarterly Operating Results and Comprehensive Income (Narrative) (Details) $ in Millions |
3 Months Ended |
---|---|
Dec. 31, 2017
USD ($)
| |
Periods from Q3 2016 to Q3 2017 [Member] | |
Quantifying Misstatement in Current Year Financial Statements [Line Items] | |
Prior Period Reclassification Adjustment | $ 2.8 |
Summary of Quarterly Operating Results and Comprehensive Income (Unaudited) (Quarterly Results) (Details 1) - USD ($) $ / shares in Units, shares in Thousands, $ in Thousands |
3 Months Ended | 12 Months Ended | |||||||||
---|---|---|---|---|---|---|---|---|---|---|---|
Dec. 31, 2017 |
Sep. 30, 2017 |
Jun. 30, 2017 |
Mar. 31, 2017 |
Dec. 31, 2016 |
Sep. 30, 2016 |
Jun. 30, 2016 |
Mar. 31, 2016 |
Dec. 31, 2017 |
Dec. 31, 2016 |
Dec. 31, 2015 |
|
Operating Revenues | |||||||||||
Education | $ 380,953 | $ 377,033 | $ 386,698 | $ 372,975 | $ 391,261 | $ 386,936 | $ 419,144 | $ 401,006 | $ 1,517,659 | $ 1,598,347 | $ 1,927,405 |
Advertising | 84,517 | 74,198 | 77,437 | 69,221 | 90,707 | 91,597 | 75,494 | 73,104 | 305,373 | 330,902 | 299,076 |
Other | 210,347 | 205,994 | 211,952 | 140,521 | 147,611 | 143,105 | 134,295 | 127,630 | 768,814 | 552,641 | 359,633 |
Total Operating Revenues | 675,817 | 657,225 | 676,087 | 582,717 | 629,579 | 621,638 | 628,933 | 601,740 | 2,591,846 | 2,481,890 | 2,586,114 |
Operating Costs and Expenses | |||||||||||
Operating | 371,922 | 374,987 | 381,747 | 325,687 | 320,677 | 314,513 | 318,612 | 316,228 | 1,454,343 | 1,270,030 | 1,306,863 |
Selling, general and administrative | 225,477 | 228,051 | 208,973 | 225,289 | 208,281 | 232,080 | 229,442 | 226,294 | 887,790 | 896,097 | 1,080,768 |
Depreciation of property, plant and equipment | 15,984 | 16,002 | 15,871 | 14,652 | 15,717 | 16,097 | 16,045 | 16,761 | 62,509 | 64,620 | 77,906 |
Amortization of Intangible Assets | 12,897 | 10,923 | 10,531 | 6,836 | 7,511 | 6,620 | 6,278 | 6,262 | 41,187 | 26,671 | 19,017 |
Impairment of goodwill and other long-lived assets | 78 | 312 | 9,224 | 0 | 9,614 | 1,603 | 259,700 | ||||
Impairment of Goodwill | 1,603 | 0 | 0 | 0 | 7,616 | 1,603 | |||||
Total Operating Costs and Expenses | 626,358 | 630,275 | 626,346 | 572,464 | 553,789 | 569,310 | 570,377 | 565,545 | 2,455,443 | 2,259,021 | 2,744,254 |
Income (Loss) from Operations | 49,459 | 26,950 | 49,741 | 10,253 | 75,790 | 52,328 | 58,556 | 36,195 | 136,403 | 222,869 | (158,140) |
Equity in losses of affiliates, net | (4,697) | (532) | 1,331 | 649 | (7,042) | (1,008) | (891) | 1,004 | (3,249) | (7,937) | (697) |
Interest Income | 3,184 | 861 | 1,173 | 1,363 | 1,041 | 740 | 721 | 591 | 6,581 | 3,093 | 1,909 |
Interest expense | (8,103) | (8,619) | (9,035) | (8,129) | (10,857) | (8,614) | (7,971) | (7,948) | (33,886) | (35,390) | (32,654) |
Non-operating pension and postretirement benefit income, net | 17,657 | 17,621 | 18,620 | 18,801 | 33,699 | 15,705 | 15,584 | 15,677 | 72,699 | 80,665 | 77,315 |
Other income (expense), net | (2,640) | 1,963 | 4,069 | 849 | (28,513) | (18,225) | 19,000 | 15,096 | 4,241 | (12,642) | (8,623) |
Income (Loss) from Continuing Operations Before Income Taxes | 54,860 | 38,244 | 65,899 | 23,786 | 64,118 | 40,926 | 84,999 | 60,615 | 182,789 | 250,658 | (120,890) |
(Benefit from) Provision for Income Taxes | (159,700) | 13,400 | 23,900 | 2,700 | 27,200 | 7,800 | 23,800 | 22,400 | (119,700) | 81,200 | 20,500 |
Net Income (Loss) | 214,560 | 24,844 | 41,999 | 21,086 | 36,918 | 33,126 | 61,199 | 38,215 | 302,489 | 169,458 | (99,220) |
Income (Loss) from Continuing Operations | 302,489 | 169,458 | (141,390) | ||||||||
Income from Discontinued Operations, Net of Tax | 0 | 0 | 42,170 | ||||||||
Net (Income) Loss Attributable to Noncontrolling Interests | (382) | (60) | (3) | 0 | 0 | 0 | (433) | (435) | (445) | (868) | (1,435) |
Net (Income) Loss Attributable to Noncontrolling Interests | (476) | ||||||||||
Net Income (Loss) Attributable to Graham Holdings Company | 302,044 | 168,590 | (100,655) | ||||||||
Redeemable Preferred Stock Dividends | 0 | 0 | (631) | ||||||||
Net Income (Loss) Attributable to Graham Holdings Company Common Stockholders | 214,178 | 24,784 | 41,996 | 21,086 | 36,918 | 33,126 | 60,766 | 37,780 | 302,044 | 168,590 | (101,286) |
Amounts Attributable to Graham Holdings Company Common Stockholders | |||||||||||
Income (loss) from continuing operations | 302,044 | 168,590 | (143,456) | ||||||||
Income from Discontinued Operations, Net of Tax | 0 | 0 | 42,170 | ||||||||
Net Income (Loss) Attributable to Graham Holdings Company Common Stockholders | $ 214,178 | $ 24,784 | $ 41,996 | $ 21,086 | $ 36,918 | $ 33,126 | $ 60,766 | $ 37,780 | $ 302,044 | $ 168,590 | $ (101,286) |
Per Share Information Attributable to Graham Holdings Company Common Stockholders | |||||||||||
Basic income (loss) per common share from continuing operations in dollars per share | $ 54.24 | $ 29.95 | $ (25.23) | ||||||||
Basic income per common share from discontinued operations in dollars per share | 0.00 | 0.00 | 7.36 | ||||||||
Basic net income (loss) per common share in dollars per share | $ 38.76 | $ 4.45 | $ 7.51 | $ 3.77 | $ 6.60 | $ 5.90 | $ 10.82 | $ 6.63 | $ 54.24 | $ 29.95 | $ (17.87) |
Basic average number of common shares outstanding in shares | 5,473 | 5,518 | 5,539 | 5,535 | 5,527 | 5,544 | 5,544 | 5,623 | 5,516 | 5,559 | 5,727 |
Diluted income (loss) per common share from continuing operations in dollars per share | $ 53.89 | $ 29.80 | $ (25.23) | ||||||||
Diluted income per common share from discontinued operations in dollars per share | 0.00 | 0.00 | 7.36 | ||||||||
Diluted net income (loss) per common share in dollars per share | $ 38.52 | $ 4.42 | $ 7.46 | $ 3.75 | $ 6.57 | $ 5.87 | $ 10.76 | $ 6.59 | $ 53.89 | $ 29.80 | $ (17.87) |
Diluted average number of common shares outstanding in shares | 5,509 | 5,554 | 5,577 | 5,569 | 5,556 | 5,574 | 5,574 | 5,652 | 5,552 | 5,589 | 5,727 |
Comprehensive Income (Loss), Net of Tax, Attributable to Parent | $ 367,648 | $ 64,029 | $ 59,135 | $ 39,368 | $ (40,946) | $ 40,331 | $ 49,996 | $ 41,015 | $ 530,180 | $ 90,396 | $ (239,455) |
Summary of Quarterly Operating Results and Comprehensive Income (Unaudited) (Quarterly Impact of Certain Items) (Details 2) - USD ($) $ / shares in Units, $ in Thousands |
3 Months Ended | 12 Months Ended | |||||||||
---|---|---|---|---|---|---|---|---|---|---|---|
Dec. 31, 2017 |
Sep. 30, 2017 |
Jun. 30, 2017 |
Mar. 31, 2017 |
Dec. 31, 2016 |
Sep. 30, 2016 |
Jun. 30, 2016 |
Mar. 31, 2016 |
Dec. 31, 2017 |
Dec. 31, 2016 |
Dec. 31, 2015 |
|
Quarterly Impact of Certain Items [Line Items] | |||||||||||
Non-operating unrealized foreign currency gains (losses), after tax | $ (2,100) | $ 900 | $ 2,200 | $ 1,100 | $ (4,200) | $ (2,400) | $ (15,400) | $ (3,400) | $ 2,100 | $ (25,500) | |
Earnings Per Share, Diluted, Foreign Currency Transaction Gain (Loss), Unrealized | $ (0.37) | $ 0.16 | $ 0.39 | $ 0.19 | $ (0.75) | $ (0.43) | $ (2.73) | $ (0.60) | |||
Net nonrecurring deferred tax benefit adjustment | $ 177,500 | 177,500 | |||||||||
Earnings Per Share, Diluted, Net Deferred Tax Benefit | $ 31.68 | ||||||||||
Effective Income Tax Rate Reconciliation, Share-based Compensation, Excess Tax Benefit, Amount | $ 5,900 | (6,023) | 0 | $ 0 | |||||||
Earnings Per Share, Diluted, Effective Income Tax Rate Reconciliation, share-based compensation | $ 1.06 | ||||||||||
Non-operating Settlement Gain, after tax | $ 10,800 | 10,800 | |||||||||
Earnings Per Share, Diluted, Non-operating Settlement Gain | $ 1.92 | ||||||||||
Net non-operating gain (loss) from the sales of land and marketable equity securities, after tax | $ (5,000) | $ 23,900 | $ 1,100 | 20,000 | |||||||
Earnings Per Share, Diluted, Nonoperating Gain Loss From Sales Of Land And Marketable Equity Securities | $ (0.90) | $ 4.23 | $ 0.19 | ||||||||
Net Non-operating Gain (Loss) Sale Of Businesses And Investments And Formation Of Joint Venture, after tax | $ 1,700 | $ 11,900 | 13,600 | ||||||||
Earnings Per Share, Diluted, Net Non-operating Gain (Loss) Sale of Businesses And Investments And Formation Of Joint Venture | $ 0.29 | $ 2.08 | |||||||||
Non-operating expense from the write-down of cost and equity method investments, after tax | $ 14,500 | $ 9,600 | 24,100 | ||||||||
Earnings Per Share, Diluted, Nonoperating Expense Writedown Of Cost And Equity Method Investments | $ (2.57) | $ (1.70) | |||||||||
Education [Member] | |||||||||||
Quarterly Impact of Certain Items [Line Items] | |||||||||||
Restructuring and Non-Operating Separation Incentive Program Charges, after tax | $ 4,500 | $ 1,100 | $ 400 | $ 300 | $ 4,500 | $ 1,100 | $ 900 | $ 1,200 | 6,300 | 7,700 | |
Earnings Per Share, Diluted, Restructuring And Non-Operating Separation Incentive Program Charges | $ (0.81) | $ (0.20) | $ (0.06) | $ (0.05) | $ (0.81) | $ (0.19) | $ (0.15) | $ (0.21) | |||
Education [Member] | Kaplan International [Member] | |||||||||||
Quarterly Impact of Certain Items [Line Items] | |||||||||||
Net nonrecurring deferred tax benefit adjustment | $ 8,300 | 8,300 | |||||||||
Earnings Per Share, Diluted, Net Deferred Tax Benefit | $ 1.47 | ||||||||||
Education [Member] | Higher Education [Member] | |||||||||||
Quarterly Impact of Certain Items [Line Items] | |||||||||||
Net nonrecurring deferred tax benefit adjustment | $ 5,600 | $ 5,600 | |||||||||
Earnings Per Share, Diluted, Net Deferred Tax Benefit | $ 1.00 | ||||||||||
Other Businesses [Member] | |||||||||||
Quarterly Impact of Certain Items [Line Items] | |||||||||||
Net Goodwill and other long-lived assets impairment, after tax | $ 5,800 | $ 5,800 | |||||||||
Earnings Per Share, Diluted, Impairment of Goodwill and other long-lived assets | $ (1.03) |
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