Summary of Quarterly Operating Results and Comprehensive Income (Unaudited) (Tables)

12 Months Ended

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:

(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

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:

(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	)

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).

Schedule Of Quarterly Impact From Certain Items

Quarterly impact from certain items in 2017 and 2016 (after-tax and diluted EPS amounts):

		First Quarter			Second Quarter			Third Quarter			Fourth Quarter
2017
Ÿ	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	)
Ÿ	Goodwill and long-lived assets impairment charges of $5.8 million at other businesses				$	(1.03	)
Ÿ	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	)
Ÿ	Net deferred tax benefits of $177.5 million related to the Tax Act										$	31.68
Ÿ	Income tax benefit of $5.9 million related to stock compensation	$	1.06

2016
Ÿ	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	)
Ÿ	Non-operating settlement gain of $10.8 million related to a bulk lump sum pension offering										$	1.92
Ÿ	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	)
Ÿ	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
Ÿ	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	)
Ÿ	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	)
Ÿ	Net nonrecurring $8.3 million deferred tax benefit related to Kaplan’s international operations							$	1.47
Ÿ	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