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Summary of Quarterly Operating Results and Comprehensive Income (Loss) (Unaudited)
 12 Months Ended
Dec. 31, 2019
Quarterly Financial Information Disclosure [Abstract]  
Summary of Quarterly Operating Results and Comprehensive Income (Loss) (Unaudited)
SUMMARY OF QUARTERLY OPERATING RESULTS AND COMPREHENSIVE INCOME (LOSS) (UNAUDITED)
Quarterly results of operations and comprehensive income for the year ended December 31, 2019, is as follows:
(in thousands, except per share amounts)
First
Quarter
 
Second Quarter
 
Third
Quarter
 
Fourth
Quarter
Operating Revenues
$
692,199

 
$
737,602

 
$
738,820

 
$
763,478

Operating Costs and Expenses
 
 
 
 
 
 
 
Operating
477,230

 
503,763

 
517,935

 
524,277

Selling, general and administrative
148,383

 
148,419

 
175,322

 
170,576

Depreciation of property, plant and equipment
13,523

 
13,884

 
15,351

 
16,495

Amortization of intangible assets
13,060

 
12,880

 
13,572

 
13,731

Impairment of long-lived assets
—

 
693

 
372

 
8,087

 
652,196

 
679,639

 
722,552

 
733,166

Income from Operations
40,003

 
57,963

 
16,268

 
30,312

Equity in earnings of affiliates, net
1,679

 
1,467

 
4,683

 
3,835

Interest income
1,700

 
1,579

 
1,474

 
1,398

Interest expense
(7,425
)
 
(8,386
)
 
(6,776
)
 
(7,192
)
Non-operating pension and postretirement benefit income, net
19,928

 
12,253

 
19,556

 
111,061

Gain on marketable equity securities, net
24,066

 
7,791

 
17,404

 
49,407

Other income (expense), net
29,351

 
1,228

 
5,556

 
(3,704
)
Income Before Income Taxes
109,302

 
73,895

 
58,165

 
185,117

Provision for Income Taxes
27,600

 
16,700

 
15,200

 
39,100

Net Income
81,702

 
57,195

 
42,965

 
146,017

Net Loss (Income) Attributable to Noncontrolling Interests
46

 
(114
)
 
180

 
(136
)
Net Income Attributable to Graham Holdings Company Common Stockholders
$
81,748

 
$
57,081

 
$
43,145

 
$
145,881

 
 
 
 
 
 
 
 
Quarterly Comprehensive Income
$
90,038

 
$
44,986

 
$
25,059

 
$
267,238

 
 
 
 
 
 
 
 
Per Share Information Attributable to Graham Holdings Company Common Stockholders
 
 
 
 
 
 
 
Basic net income per common share
$
15.38

 
$
10.74

 
$
8.12

 
$
27.45

Basic average number of common shares outstanding
5,284

 
5,285

 
5,285

 
5,284

Diluted net income per common share
$
15.26

 
$
10.65

 
$
8.05

 
$
27.25

Diluted average number of common shares outstanding
5,326

 
5,329

 
5,329

 
5,324


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.
Quarterly results of operations and comprehensive income (loss) for the year ended December 31, 2018, is as follows:
(in thousands, except per share amounts)
First
Quarter
 
Second
Quarter
 
Third
Quarter
 
Fourth
Quarter
Operating Revenues
$
659,436

 
$
672,677

 
$
674,766

 
$
689,087

Operating Costs and Expenses
 
 
 
 
 
 
 
Operating
365,151

 
440,655

 
448,920

 
432,706

Selling, general and administrative
225,045

 
141,378

 
131,081

 
152,624

Depreciation of property, plant and equipment
14,642

 
13,619

 
13,648

 
14,813

Amortization of intangible assets
10,384

 
11,399

 
12,269

 
13,362

Impairment of long-lived assets
—

 
—

 
8,109

 
—

 
615,222

 
607,051

 
614,027

 
613,505

Income from Operations
44,214

 
65,626

 
60,739

 
75,582

Equity in earnings of affiliates, net
2,579

 
931

 
9,537

 
1,426

Interest income
1,372

 
1,901

 
611

 
1,469

Interest expense
(8,071
)
 
(17,165
)
 
(6,135
)
 
(6,531
)
Debt extinguishment costs
—

 
(11,378
)
 
—

 
—

Non-operating pension and postretirement benefit income, net
21,386

 
23,041

 
22,214

 
53,900

(Loss) gain on marketable equity securities, net
(14,102
)
 
(2,554
)
 
44,962

 
(44,149
)
Other income (expense), net
9,187

 
2,333

 
3,142

 
(12,559
)
Income Before Income Taxes
56,565

 
62,735

 
135,070

 
69,138

Provision for Income Taxes
13,600

 
16,100

 
10,000

 
12,400

Net Income
42,965

 
46,635

 
125,070

 
56,738

Net Income Attributable to Noncontrolling Interests
(74
)
 
(69
)
 
(6
)
 
(53
)
Net Income Attributable to Graham Holdings Company Common Stockholders
$
42,891

 
$
46,566

 
$
125,064

 
$
56,685

 
 
 
 
 
 
 
 
Quarterly Comprehensive Income (Loss)
$
53,703

 
$
13,345

 
$
119,862

 
$
(52,541
)
 
 
 
 
 
 
 
 
Per Share Information Attributable to Graham Holdings Company Common Stockholders
 
 
 
 
 
 
 
Basic net income per common share
$
7.84

 
$
8.69

 
$
23.43

 
$
10.69

Basic average number of common shares outstanding
5,436

 
5,325

 
5,302

 
5,270

Diluted net income per common share
$
7.78

 
$
8.63

 
$
23.28

 
$
10.61

Diluted average number of common shares outstanding
5,473

 
5,362

 
5,337

 
5,309


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.

Quarterly impact from certain items in 2019 and 2018 (after-tax and diluted EPS amounts):
 
 
First
Quarter
 
Second
Quarter
 
Third
Quarter
 
Fourth
Quarter
2019
 
 
 
 
 
 
 
Ÿ
A $13.9 million provision recorded at Kaplan International related to a VAT receivable at UK Pathways
 
 
 
 
$
(2.59
)
 
 
Ÿ
A $9.1 million reduction to operating expenses from property, plant, and equipment gains in connection with the spectrum repacking mandate of the FCC ($1.4 million, $6.0 million, $0.9 million and $0.8 million in the first, second, third and fourth quarters, respectively)
$
0.26

 
$
1.13

 
$
0.16

 
$
0.15

Ÿ
Intangible asset impairment charge of $6.0 million at the television broadcasting division
 
 
 
 
 
 
$
(1.12
)
Ÿ
A $66.9 million settlement gain related to retiree annuity pension purchase
 
 
 
 
 
 
$
12.50

Ÿ
$5.1 million in expenses related to non-operating Separation Incentive Program at the education division
 
 
$
(0.95
)
 
 
 
 
Ÿ
Gains, net, of $74.0 million on marketable equity securities ($18.0 million, $5.8 million, $13.1 million, and $37.1 million for the first, second, third and fourth quarters, respectively)
$
3.37

 
$
1.09

 
$
2.44

 
$
6.92

Ÿ
Non-operating gain, net, of $3.9 million from the write-ups of cost method investments ($1.1 million and $2.8 million in the first and third quarters, respectively)
$
0.22

 
 
 
$
0.51

 
 
Ÿ
A $21.7 million gain from the sale of Gimlet Media
$
4.06

 
 
 
 
 
 
Ÿ
Losses, net, of $0.8 million for non-operating foreign currency gains (losses) ($0.4 million gain, $0.1 million gain, $0.5 million gain, and $1.8 million loss in the first, second, third and fourth quarters, respectively)
$
0.07

 
$
0.02

 
$
0.09

 
$
(0.33
)
Ÿ
Income tax benefit of $1.7 million related to stock compensation
$
0.32

 
 
 
 
 
 

2018
 
 
 
 
 
 
 
Ÿ
Intangible asset impairment charge of $5.8 million at the healthcare business
 
 
 
 
$
(1.08
)
 
 
Ÿ
A $3.0 million reduction to operating expenses from property, plant, and equipment gains in connection with the spectrum repacking mandate of the FCC ($0.2 million, $0.6 million, $0.8 million and $1.4 million in the first, second, third and fourth quarters, respectively)
$
0.04

 
$
0.11

 
$
0.14

 
$
0.26

Ÿ
Interest expense of $6.2 million related to the settlement of a mandatorily redeemable noncontrolling interest
 
 
$
(1.14
)
 
 
 
 
Ÿ
Debt extinguishment costs of $8.6 million
 
 
$
(1.60
)
 
 
 
 
Ÿ
A $22.2 million settlement gain related to a bulk lump sum pension offering and curtailment gain related to changes in the Company’s postretirement healthcare benefit plan
 
 
 
 
 
 
$
4.11

Ÿ
Losses, net, of $12.6 million on marketable equity securities ($10.7 million loss, $1.9 million loss, $33.6 million gain, and $33.6 million loss in the first, second, third and fourth quarters, respectively)
$
(1.94
)
 
$
(0.36
)
 
$
6.26

 
$
(6.28
)
Ÿ
Non-operating gain, net, of $5.7 million from sales, write-ups and impairments of cost method and equity method investments, and related to sales of land and businesses, including losses on guarantor lease obligations ($3.6 million gain, $1.8 million gain, $8.0 million gain, and $7.7 million loss in the first, second, third and fourth quarters, respectively)
$
0.65

 
$
0.34

 
$
1.48

 
$
(1.43
)
Ÿ
Gain of $1.8 million on the Kaplan University Transaction
$
0.33

 
 
 
 
 
 
Ÿ
Losses, net, of $2.9 million for non-operating foreign currency (losses) gains ($0.1 million gain, $1.7 million loss, $0.1 million loss, and $1.2 million loss in the first, second, third and fourth quarters, respectively)
$
0.02

 
$
(0.32
)
 
$
(0.02
)
 
$
(0.23
)
Ÿ
A nonrecurring discrete $17.8 million deferred state tax benefit related to the release of valuation allowances
 
 
 
 
$
3.31

 
 
Ÿ
Income tax benefit of $1.8 million related to stock compensation
$
0.33