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Business Segments
 12 Months Ended
Dec. 31, 2023
Segment Reporting [Abstract]  
Business Segments BUSINESS SEGMENTS
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.
In the second quarter of 2023, Kaplan modified its segment reporting for Kaplan India, a shared services center that supports Higher Education. Kaplan India was previously included in Kaplan corporate and other. Certain amounts in previously issued financial statements have been reclassified to conform to the current presentation.
The Company has seven reportable segments: Kaplan International, Kaplan Higher Education, Kaplan Supplemental Education, Television Broadcasting, Manufacturing, Healthcare and Automotive.
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 operating income before amortization by segment, the effects of amortization of intangible assets, impairment of goodwill and other long-lived assets, 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 excluded. Intersegment sales are not material.
Identifiable assets by segment are those assets used in the Company’s operations in each business segment. The investments in marketable equity securities and affiliates, and prepaid pension cost are not included in identifiable assets by segment. Investments in marketable equity securities are discussed in Note 4.
Education.  Education products and services are provided by Kaplan, Inc. Kaplan International includes professional training and postsecondary education businesses largely outside the U.S., as well as English-language programs. KHE includes the results as a service provider to higher education institutions. Supplemental Education includes Kaplan’s standardized test preparation, domestic professional and other continuing education businesses.
As of December 31, 2023, Kaplan had a total outstanding accounts receivable balance of $98.2 million from Purdue Global related to amounts due for reimbursements for services, fees earned and a deferred fee. Included in this total, Kaplan has a $19.6 million long-term receivable balance due from Purdue Global at December 31, 2023, related to the advance of $20.0 million during the initial KU Transaction.
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.
Manufacturing. Manufacturing operations include Hoover, a Thomson, GA-based supplier of pressure impregnated kiln-dried lumber and plywood products for fire retardant and preservative application; Dekko, a Garrett, IN-based manufacturer of electrical workspace solutions, architectural lighting, and electrical components and assemblies; 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.
Healthcare. Graham Healthcare Group provides home health, hospice and palliative services. GHG also provides other healthcare services, including nursing care and prescription services for patients receiving in-home infusion treatments, ABA therapy clinics, physician services for allergy, asthma and immunology patients, in-home aesthetics and healthcare software-as-a-service technology.
Automotive. Automotive includes eight automotive dealerships in the Washington, D.C. metropolitan area and Richmond, VA, including Lexus of Rockville, Honda of Tysons Corner, Jeep of Bethesda, Ford of Manassas, which was acquired in December 2021, Toyota of Woodbridge and Chrysler-Dodge-Jeep-Ram of Woodbridge, which were acquired in July 2022, and Toyota of Richmond, which was acquired in September 2023. The automotive group was awarded a Kia Open Point dealership in Bethesda, MD, which commenced operations at the end of December 2023. For the years ended December 2023, 2022 and 2021, the automotive group recorded expense of $7.3 million, $5.7 million and $3.6 million, respectively, for operating and management services provided by Christopher J. Ourisman and his team of industry professionals.
Other Businesses. Other businesses includes the following:
•Leaf Group, a consumer internet company, which was acquired in June 2021. In the second quarter of 2023, the Company restructured Leaf into three stand-alone businesses:
◦Society6 (formerly included in Leaf Marketplace), an online art and design marketplace.
◦Saatchi Art (formerly included in Leaf Marketplace), an online art gallery.
◦WGB (formerly Leaf Media), which consists of a diverse portfolio of media properties that educate and inform consumers across a wide variety of life topics.
•Clyde’s Restaurant Group owns and operates 12 restaurants and entertainment venues in the Washington, D.C. metropolitan area.
•Framebridge, a custom framing service company.
•Code3, a marketing and insights company that manages digital advertising campaigns; the Slate Group and Foreign Policy Group, which publish online and print magazines and websites; and two investment stage businesses, Decile and City Cast. Other businesses also includes CyberVista, which merged with another entity in October 2022 resulting in the deconsolidation of the subsidiary and Pinna, which merged with another entity in June 2023 resulting in the deconsolidation of the subsidiary.
Corporate Office.  Corporate office includes the expenses of the Company’s corporate office, defined benefit pension expense, and certain continuing obligations related to prior business dispositions.
Geographical Information.  The Company’s non-U.S. revenues in 2023, 2022 and 2021 totaled approximately $930 million, $776 million and $709 million, respectively, primarily from Kaplan’s operations outside the U.S. Additionally, revenues in 2023, 2022 and 2021 totaled approximately $543 million, $448 million, and $404 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 $492 million and $477 million at December 31, 2023 and 2022, respectively.
Company information broken down by operating segment and education division:
Year Ended December 31
(in thousands)202320222021
Operating Revenues   
Education$1,587,581 $1,427,915 $1,361,245 
Television broadcasting472,436 535,651 494,177 
Manufacturing447,910 486,643 458,125 
Healthcare459,481 326,000 223,030 
Automotive1,079,893 734,185 327,069 
Other businesses369,653 416,084 324,353 
Corporate office1,580 — — 
Intersegment elimination(3,657)(1,985)(2,025)
 $4,414,877 $3,924,493 $3,185,974 
Income (Loss) from Operations before Amortization of Intangible Assets and Impairment of Goodwill and Other Long-Lived Assets
Education$119,024 $99,103 $69,892 
Television broadcasting139,388 207,319 154,862 
Manufacturing47,010 54,079 36,926 
Healthcare27,520 19,041 29,912 
Automotive39,271 34,633 11,771 
Other businesses(98,115)(86,270)(76,153)
Corporate office(55,600)(56,166)(59,025)
$218,498 $271,739 $168,185 
Amortization of Intangible Assets and Impairment of Goodwill and Other Long-Lived Assets
Education$14,553 $16,170 $19,319 
Television broadcasting5,450 5,440 5,440 
Manufacturing63,803 20,372 52,974 
Healthcare3,675 3,776 3,106 
Automotive13 — — 
Other businesses61,611 142,083 9,971 
Corporate office— — — 
 $149,105 $187,841 $90,810 
Income (Loss) from Operations
Education$104,471 $82,933 $50,573 
Television broadcasting133,938 201,879 149,422 
Manufacturing(16,793)33,707 (16,048)
Healthcare23,845 15,265 26,806 
Automotive39,258 34,633 11,771 
Other businesses(159,726)(228,353)(86,124)
Corporate office(55,600)(56,166)(59,025)
 $69,393 $83,898 $77,375 
Equity in (Losses) Earnings of Affiliates, Net(5,183)(2,837)17,914 
Interest Expense, Net(56,179)(51,177)(30,534)
Non-Operating Pension and Postretirement Benefit Income, Net133,812 197,939 109,230 
Gain (Loss) on Marketable Equity Securities, net138,067 (139,589)243,088 
Other Income, Net19,094 33,500 32,554 
Income Before Income Taxes$299,004 $121,734 $449,627 
Year Ended December 31
(in thousands)202320222021
Depreciation of Property, Plant and Equipment   
Education$38,187 $34,114 $32,113 
Television broadcasting12,224 12,294 14,018 
Manufacturing9,453 9,399 9,808 
Healthcare5,475 3,781 1,313 
Automotive5,177 3,709 2,156 
Other businesses14,941 9,392 11,376 
Corporate office607 608 631 
 $86,064 $73,297 $71,415 
Pension Service Cost   
Education$8,907 $8,934 $9,357 
Television broadcasting3,331 3,554 3,575 
Manufacturing1,115 1,104 1,282 
Healthcare14,083 11,008 561 
Automotive35 22 — 
Other businesses2,508 2,073 1,755 
Corporate office3,808 5,872 6,461 
 $33,787 $32,567 $22,991 
Capital Expenditures   
Education$36,760 $46,878 $100,780 
Television broadcasting9,220 5,832 6,803 
Manufacturing23,089 7,968 7,190 
Healthcare12,992 2,745 3,671 
Automotive10,140 3,606 31,124 
Other businesses15,053 15,352 13,176 
Corporate office32 21 25 
 $107,286 $82,402 $162,769 
Asset information for the Company’s business segments is as follows:
 As of December 31
(in thousands)20232022
Identifiable Assets  
Education$2,021,471 $1,958,204 
Television broadcasting419,557 431,084 
Manufacturing431,712 486,487 
Healthcare265,150 249,845 
Automotive597,267 427,221 
Other businesses368,542 475,583 
Corporate office93,760 70,567 
 $4,197,459 $4,098,991 
Investments in Marketable Equity Securities690,153 609,921 
Investments in Affiliates186,480 186,419 
Prepaid Pension Cost2,113,638 1,658,046 
Total Assets$7,187,730 $6,553,377 
The Company’s education division comprises the following operating segments:
Year Ended December 31
(in thousands)202320222021
Operating Revenues   
Kaplan international$966,879 $816,239 $726,875 
Higher education326,961 310,407 322,240 
Supplemental education292,776 301,625 309,069 
Kaplan corporate and other11,012 9,853 9,612 
Intersegment elimination(10,047)(10,209)(6,551)
 $1,587,581 $1,427,915 $1,361,245 
Income (Loss) from Operations before Amortization of Intangible Assets and Impairment of Long-Lived Assets
Kaplan international$87,530 $72,066 $33,457 
Higher education38,942 24,819 24,941 
Supplemental education22,472 21,069 36,919 
Kaplan corporate and other(29,891)(18,806)(25,522)
Intersegment elimination(29)(45)97 
$119,024 $99,103 $69,892 
Amortization of Intangible Assets$14,076 $16,170 $16,001 
Impairment of Long-Lived Assets$477 $— $3,318 
Income (Loss) from Operations   
Kaplan international$87,530 $72,066 $33,457 
Higher education38,942 24,819 24,941 
Supplemental education22,472 21,069 36,919 
Kaplan corporate and other(44,444)(34,976)(44,841)
Intersegment elimination(29)(45)97 
 $104,471 $82,933 $50,573 
Depreciation of Property, Plant and Equipment   
Kaplan international$28,501 $23,270 $21,472 
Higher education4,416 4,373 3,852 
Supplemental education5,165 6,344 6,544 
Kaplan corporate and other105 127 245 
 $38,187 $34,114 $32,113 
Pension Service Cost   
Kaplan international$325 $270 $291 
Higher education3,737 3,842 4,440 
Supplemental education4,147 4,114 3,814 
Kaplan corporate and other698 708 812 
 $8,907 $8,934 $9,357 
Capital Expenditures   
Kaplan international$31,111 $39,206 $92,532 
Higher education2,394 1,398 3,629 
Supplemental education3,209 4,749 4,297 
Kaplan corporate and other46 1,525 322 
 $36,760 $46,878 $100,780 
Asset information for the Company’s education division is as follows:
 As of December 31
(in thousands)20232022
Identifiable Assets
Kaplan international$1,537,989 $1,454,445 
Higher education187,972 187,034 
Supplemental education249,519 265,049 
Kaplan corporate and other45,991 51,676 
 $2,021,471 $1,958,204