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As Of Filer Filing For·On·As Docs:Size 10/30/19 Graham Holdings Co 10-Q 9/30/19 99:16M |
Document/Exhibit Description Pages Size
1: 10-Q Quarterly Report HTML 2.05M
2: EX-10.1 Material Contract HTML 59K
3: EX-31.1 Certification -- §302 - SOA'02 HTML 34K
4: EX-31.2 Certification -- §302 - SOA'02 HTML 33K
5: EX-32 Certification -- §906 - SOA'02 HTML 30K
73: R1 Cover Page HTML 82K
16: R2 Condensed Consolidated Statements of Operations HTML 112K
(Unaudited)
52: R3 Condensed Consolidated Statements of Comprehensive HTML 76K
Income (Unaudited)
86: R4 Condensed Consolidated Balance Sheets HTML 160K
76: R5 Condensed Consolidated Statements of Cash Flows HTML 146K
(Unaudited)
19: R6 Condensed Consolidated Statements of Changes in HTML 135K
Common Stockholders' Equity Statement
55: R7 Organization, Basis of Presentation and Recent HTML 52K
Accounting Pronouncements
87: R8 Acquisitions and Dispositions of Businesses HTML 88K
72: R9 Investments HTML 65K
93: R10 Accounts Receivable HTML 38K
59: R11 Inventories, Contracts in Progress and Vehicle HTML 43K
Floor Plan Payable
22: R12 Leases HTML 68K
34: R13 Goodwill and Other Intangible Assets HTML 183K
92: R14 Debt HTML 69K
58: R15 Fair Value Measurements HTML 80K
21: R16 Revenue from Contracts with Customers HTML 52K
33: R17 Earnings Per Share HTML 94K
90: R18 Pension and Postretirement Plans HTML 113K
60: R19 Other Non-Operating Income HTML 60K
18: R20 Accumulated Other Comprehensive Income (Loss) HTML 175K
54: R21 Contingencies and Regulatory Matters HTML 40K
84: R22 Business Segments HTML 564K
75: R23 Organization, Basis of Presentation And Recent HTML 58K
Accounting Pronouncements (Policies)
17: R24 Organization, Basis of Presentation and Recent HTML 42K
Accounting Pronouncements (Tables)
53: R25 Acquisitions and Dispositions of Businesses HTML 71K
(Tables)
83: R26 Investments (Tables) HTML 53K
74: R27 Accounts Receivable (Tables) HTML 36K
20: R28 Inventories, Contracts in Progress and Vehicle HTML 41K
Floor Plan Payable (Tables)
51: R29 Leases (Tables) HTML 68K
36: R30 Goodwill and Other Intangible Assets (Tables) HTML 181K
24: R31 Debt (Tables) HTML 45K
56: R32 Fair Value Measurements (Tables) HTML 76K
88: R33 Revenue from Contracts with Customers (Tables) HTML 45K
37: R34 Earnings Per Share (Tables) HTML 92K
25: R35 Pension and Postretirement Plans (Tables) HTML 110K
57: R36 Other Non-Operating Income (Tables) HTML 56K
89: R37 Accumulated Other Comprehensive Income (Loss) HTML 180K
(Tables)
38: R38 Business Segments (Tables) HTML 568K
23: R39 Organization, Basis of Presentation and Recent HTML 28K
Accounting Pronouncements (Organization and Basis
of Presentation) (Narrative) (Details)
46: R40 Organization, Basis of Presentation and Recent HTML 35K
Accounting Pronouncements (Recent Accounting
Pronouncements) (Narrative) (Details)
12: R41 Organization, Basis of Presentation and Recent HTML 49K
Accounting Pronouncements (Recent Accounting
Pronouncements) (Details 1)
70: R42 Acquisitions and Dispositions of Businesses HTML 103K
(Acquisitions) (Narrative) (Details)
81: R43 Acquisitions and Dispositions of Businesses HTML 58K
(Dispositions and Other) (Narrative) (Details)
47: R44 Acquisitions and Dispositions of Businesses HTML 65K
(Assets Acquired and Liabilities Assumed) (Details
1)
13: R45 Acquisitions and Dispositions of Businesses (Pro HTML 35K
Forma Financials) (Details 2)
71: R46 Acquisitions and Dispositions of Businesses HTML 34K
(Significant Component) (Details 3)
82: R47 Investments (Narrative) (Details) HTML 112K
48: R48 Investments (Investments in Marketable Equity HTML 34K
Securities) (Details 1)
11: R49 Investments (Gain (Loss) on Marketable Equity HTML 37K
Securities) (Details 2)
27: R50 Accounts Receivable (Narrative) (Details) HTML 30K
41: R51 Accounts Receivable (Details 1) HTML 38K
99: R52 Inventories, Contracts in Progress and Vehicle HTML 40K
Floor Plan Payable (Details)
66: R53 Inventories, Contracts in Progress and Vehicle HTML 44K
Floor Plan Payable (Narrative) (Details)
26: R54 Leases (Narrative) (Details) HTML 44K
40: R55 Leases (Components of Lease Expense) (Details) HTML 38K
98: R56 Leases (Supplemental Cash Flow And Balance Sheet HTML 46K
Information) (Details)
65: R57 Leases (Maturities of Operating Lease Liabilities) HTML 46K
(Details)
28: R58 Leases (Future Minimum Operating Lease Payments) HTML 48K
(Details)
39: R59 Goodwill and Other Intangible Assets (Goodwill) HTML 28K
(Narrative) (Details)
80: R60 Goodwill and Other Intangible Assets (Other HTML 55K
Intangible Assets) (Narrative) (Details)
68: R61 Goodwill and Other Intangible Assets (Changes in HTML 81K
Carrying Amount of Goodwill) (Details 1)
15: R62 Goodwill and Other Intangible Assets (Other HTML 80K
Intangible Assets) (Details 2)
50: R63 Debt (Narrative) (Details) HTML 164K
79: R64 Debt (Details 1) HTML 61K
67: R65 Fair Value Measurements (Narrative) (Details) HTML 33K
14: R66 Fair Value Measurements (Details 1) HTML 65K
49: R67 Revenue from Contracts with Customers (Narrative) HTML 55K
(Details)
78: R68 Revenue from Contracts with Customers (Contract HTML 31K
Liability) (Details)
69: R69 Revenue from Contracts with Customers (Capitalized HTML 36K
Contract Cost) (Details)
62: R70 Earnings Per Share (Narrative) (Details) HTML 37K
94: R71 Earnings Per Share (Details 1) HTML 77K
43: R72 Earnings Per Share (Details 2) HTML 29K
29: R73 Pension and Postretirement Plans (Narrative) HTML 85K
(Details)
64: R74 Pension and Postretirement Plans (Total HTML 73K
Benefit/Cost) (Details 1)
96: R75 Pension and Postretirement Plans (Asset HTML 39K
Allocation) (Details 2)
45: R76 Other Non-Operating Income (Narrative) (Details) HTML 49K
32: R77 Other Non-Operating Income (Details 1) HTML 54K
61: R78 Accumulated Other Comprehensive Income (Loss) HTML 77K
(Components of OCI) (Details 1)
97: R79 Accumulated Other Comprehensive Income (Loss) HTML 64K
(AOCI balances) (Details 2)
63: R80 Accumulated Other Comprehensive Income (Loss) HTML 77K
(Reclassifications out of AOCI) (Details 3)
95: R81 Contingencies and Regulatory Matters (Details) HTML 56K
44: R82 Business Segments (Narrative) (Details) HTML 28K
30: R83 Business Segments (Information by Operating HTML 183K
Segment) (Details 1)
35: R9999 Uncategorized Items - a2019q310-q.htm HTML 30K
91: XML IDEA XML File -- Filing Summary XML 189K
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42: EXCEL IDEA Workbook of Financial Reports XLSX 124K
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| Document |
i ☒ | Quarterly
Report Pursuant to Section 13 or 15(d) of the Securities Exchange Act of 1934 |
i ☐ | Transition
Report Pursuant to Section 13 or 15(d) of the Securities Exchange Act of 1934 |
(Exact
name of registrant as specified in its charter) |
i Delaware | i 53-0182885 | |||||
(State
or other jurisdiction of incorporation or organization) | (I.R.S. Employer Identification No.) | |||||
i 1300
North 17th Street | , | i Arlington | , | i Virginia | i 22209 | |
(Address
of principal executive offices) | (Zip Code) | |||||
Title of each class | Trading Symbol(s) | Name of each exchange on which registered | ||
i Class B Common Stock, par value
$1.00 per share | i GHC | i New York Stock Exchange | ||
i Large
Accelerated Filer | ☒ | Accelerated filer | ☐ | Non-accelerated filer | ☐ | Smaller reporting company | i ☐ | Emerging
growth company | i ☐ |
PART I. FINANCIAL INFORMATION | ||
Item 1. | Financial Statements | |
Condensed
Consolidated Statements of Operations (Unaudited) for the Three and Nine Months Ended September 30, 2019 and 2018 | ||
Condensed Consolidated Statements of Comprehensive Income (Unaudited) for the Three and Nine Months Ended September 30, 2019 and 2018 | ||
Condensed
Consolidated Balance Sheets at September 30, 2019 (Unaudited) and December 31, 2018 | ||
Condensed Consolidated Statements of Cash Flows (Unaudited) for the Nine Months Ended September 30, 2019 and 2018 | ||
Condensed
Consolidated Statements of Changes in Common Stockholders' Equity (Unaudited) for the Three and Nine Months Ended September 30, 2019 and 2018 | ||
Notes to Condensed Consolidated Financial Statements (Unaudited) | ||
Organization,
Basis of Presentation and Recent Accounting Pronouncements | ||
Acquisitions and Dispositions of Businesses | ||
Investments | ||
Accounts Receivable | ||
Inventories,
Contracts in Progress and Vehicle Floor Plan Payable | ||
Leases | ||
Goodwill and Other Intangible Assets | ||
Debt | ||
Fair
Value Measurements | ||
Revenue From Contracts With Customers | ||
Earnings Per Share | ||
Pension
and Postretirement Plans | ||
Other Non-Operating Income | ||
Accumulated Other Comprehensive Income (Loss) | ||
Contingencies and Regulatory Matters | ||
Business
Segments | ||
Item 2. | Management’s Discussion and Analysis of Results of Operations and Financial Condition | |
Item 3. | Quantitative
and Qualitative Disclosures about Market Risk | |
Item 4. | Controls and Procedures | |
PART II. OTHER INFORMATION | ||
Item
1A. | Risk Factors | |
Item 6. | Exhibits | |
Signatures | ||
Three
Months Ended September 30 | Nine Months Ended September 30 | ||||||||||||||
(in thousands, except per share amounts) | 2019 | 2018 | 2019 | 2018 | |||||||||||
Operating
Revenues | $ | i 738,820 | $ | i 674,766 | $ | i 2,168,621 | $ | i 2,006,879 | |||||||
Operating
Costs and Expenses | |||||||||||||||
Operating | i 517,935 | i 448,920 | i 1,498,928 | i 1,254,726 | |||||||||||
Selling,
general and administrative | i 175,322 | i 131,081 | i 472,124 | i 497,504 | |||||||||||
Depreciation
of property, plant and equipment | i 15,351 | i 13,648 | i 42,758 | i 41,909 | |||||||||||
Amortization
of intangible assets | i 13,572 | i 12,269 | i 39,512 | i 34,052 | |||||||||||
Impairment
of long-lived assets | i 372 | i 8,109 | i 1,065 | i 8,109 | |||||||||||
i 722,552 | i 614,027 | i 2,054,387 | i 1,836,300 | ||||||||||||
Income
from Operations | i 16,268 | i 60,739 | i 114,234 | i 170,579 | |||||||||||
Equity
in earnings of affiliates, net | i 4,683 | i 9,537 | i 7,829 | i 13,047 | |||||||||||
Interest
income | i 1,474 | i 611 | i 4,753 | i 3,884 | |||||||||||
Interest
expense | ( i 6,776 | ) | ( i 6,135 | ) | ( i 22,587 | ) | ( i 31,371 | ) | |||||||
Debt
extinguishment costs | i — | i — | i — | ( i 11,378 | ) | ||||||||||
Non-operating
pension and postretirement benefit income, net | i 19,556 | i 22,214 | i 51,737 | i 66,641 | |||||||||||
Gain
on marketable equity securities, net | i 17,404 | i 44,962 | i 49,261 | i 28,306 | |||||||||||
Other
income, net | i 5,556 | i 3,142 | i 36,135 | i 14,662 | |||||||||||
Income
Before Income Taxes | i 58,165 | i 135,070 | i 241,362 | i 254,370 | |||||||||||
Provision
for Income Taxes | i 15,200 | i 10,000 | i 59,500 | i 39,700 | |||||||||||
Net
Income | i 42,965 | i 125,070 | i 181,862 | i 214,670 | |||||||||||
Net
Loss (Income) Attributable to Noncontrolling Interests | i 180 | ( i 6 | ) | i 112 | ( i 149 | ) | |||||||||
Net
Income Attributable to Graham Holdings Company Common Stockholders | $ | i 43,145 | $ | i 125,064 | $ | i 181,974 | $ | i 214,521 | |||||||
Per
Share Information Attributable to Graham Holdings Company Common Stockholders | |||||||||||||||
Basic net income per common share | $ | i 8.12 | $ | i 23.43 | $ | i 34.24 | $ | i 39.81 | |||||||
Basic
average number of common shares outstanding | i 5,285 | i 5,302 | i 5,285 | i 5,354 | |||||||||||
Diluted
net income per common share | $ | i 8.05 | $ | i 23.28 | $ | i 33.96 | $ | i 39.54 | |||||||
Diluted
average number of common shares outstanding | i 5,329 | i 5,337 | i 5,328 | i 5,390 | |||||||||||
Three
Months Ended September 30 | Nine Months Ended September 30 | ||||||||||||||
(in thousands) | 2019 | 2018 | 2019 | 2018 | |||||||||||
Net Income | $ | i 42,965 | $ | i 125,070 | $ | i 181,862 | $ | i 214,670 | |||||||
Other
Comprehensive Loss, Before Tax | |||||||||||||||
Foreign currency translation adjustments: | |||||||||||||||
Translation
adjustments arising during the period | ( i 16,684 | ) | ( i 2,844 | ) | ( i 17,755 | ) | ( i 22,447 | ) | |||||||
Pension
and other postretirement plans: | |||||||||||||||
Amortization of net prior service (credit) cost included in net income | ( i 932 | ) | i 69 | ( i 3,210 | ) | i 215 | |||||||||
Amortization
of net actuarial gain included in net income | ( i 511 | ) | ( i 3,295 | ) | ( i 1,534 | ) | ( i 7,956 | ) | |||||||
( i 1,443 | ) | ( i 3,226 | ) | ( i 4,744 | ) | ( i 7,741 | ) | ||||||||
Cash
flow hedges (loss) gain | ( i 477 | ) | ( i 6 | ) | ( i 904 | ) | i 601 | ||||||||
Other
Comprehensive Loss, Before Tax | ( i 18,604 | ) | ( i 6,076 | ) | ( i 23,403 | ) | ( i 29,587 | ) | |||||||
Income
tax benefit related to items of other comprehensive loss | i 518 | i 874 | i 1,512 | i 1,976 | |||||||||||
Other
Comprehensive Loss, Net of Tax | ( i 18,086 | ) | ( i 5,202 | ) | ( i 21,891 | ) | ( i 27,611 | ) | |||||||
Comprehensive
Income | i 24,879 | i 119,868 | i 159,971 | i 187,059 | |||||||||||
Comprehensive
loss (income) attributable to noncontrolling interests | i 180 | ( i 6 | ) | i 112 | ( i 149 | ) | |||||||||
Total
Comprehensive Income Attributable to Graham Holdings Company | $ | i 25,059 | $ | i 119,862 | $ | i 160,083 | $ | i 186,910 | |||||||
As of | |||||||
(in
thousands) | |||||||
(Unaudited) | |||||||
Assets | |||||||
Current
Assets | |||||||
Cash and cash equivalents | $ | i 142,264 | $ | i 253,256 | |||
Restricted
cash | i 15,143 | i 10,859 | |||||
Investments
in marketable equity securities and other investments | i 554,211 | i 514,581 | |||||
Accounts
receivable, net | i 612,141 | i 582,280 | |||||
Income
taxes receivable | i 9,440 | i 19,166 | |||||
Inventories
and contracts in progress | i 113,196 | i 69,477 | |||||
Other
current assets | i 87,863 | i 82,723 | |||||
Total
Current Assets | i 1,534,258 | i 1,532,342 | |||||
Property,
Plant and Equipment, Net | i 370,882 | i 293,085 | |||||
Lease
Right-of-Use Assets | i 503,830 | i — | |||||
Investments
in Affiliates | i 163,986 | i 143,813 | |||||
Goodwill,
Net | i 1,345,393 | i 1,297,712 | |||||
Indefinite-Lived
Intangible Assets | i 144,477 | i 99,052 | |||||
Amortized
Intangible Assets, Net | i 245,393 | i 263,261 | |||||
Prepaid
Pension Cost | i 1,038,676 | i 1,003,558 | |||||
Deferred
Income Taxes | i 11,400 | i 13,388 | |||||
Deferred
Charges and Other Assets | i 129,451 | i 117,830 | |||||
Total
Assets | $ | i 5,487,746 | $ | i 4,764,041 | |||
Liabilities
and Equity | |||||||
Current Liabilities | |||||||
Accounts payable and accrued liabilities | $ | i 477,522 | $ | i 486,578 | |||
Deferred
revenue | i 337,573 | i 308,728 | |||||
Income
taxes payable | i 6,668 | i 10,496 | |||||
Current
portion of lease liabilities | i 78,114 | i — | |||||
Current
portion of long-term debt | i 81,697 | i 6,360 | |||||
Dividends
declared | i 7,387 | i — | |||||
Total
Current Liabilities | i 988,961 | i 812,162 | |||||
Accrued
Compensation and Related Benefits | i 177,116 | i 179,652 | |||||
Other
Liabilities | i 27,398 | i 57,901 | |||||
Deferred
Income Taxes | i 348,054 | i 322,421 | |||||
Lease
Liabilities | i 462,868 | i — | |||||
Long-Term
Debt | i 420,535 | i 470,777 | |||||
Total
Liabilities | i 2,424,932 | i 1,842,913 | |||||
Redeemable
Noncontrolling Interest | i 3,903 | i 4,346 | |||||
Preferred
Stock | i — | i — | |||||
Common
Stockholders’ Equity | |||||||
Common stock | i 20,000 | i 20,000 | |||||
Capital
in excess of par value | i 379,923 | i 378,837 | |||||
Retained
earnings | i 6,388,546 | i 6,236,125 | |||||
Accumulated
other comprehensive income, net of tax | |||||||
Cumulative foreign currency translation adjustment | ( i 47,025 | ) | ( i 29,270 | ) | |||
Unrealized
gain on pensions and other postretirement plans | i 229,373 | i 232,836 | |||||
Cash
flow hedges | ( i 410 | ) | i 263 | ||||
Cost
of Class B common stock held in treasury | ( i 3,918,397 | ) | ( i 3,922,009 | ) | |||
Total
Common Stockholders’ Equity | i 3,052,010 | i 2,916,782 | |||||
Noncontrolling
Interest | i 6,901 | i — | |||||
Total
Equity | i 3,058,911 | i 2,916,782 | |||||
Total
Liabilities and Equity | $ | i 5,487,746 | $ | i 4,764,041 | |||
Nine Months Ended September 30 | |||||||
(in thousands) | 2019 | 2018 | |||||
Cash Flows from Operating Activities | |||||||
Net Income | $ | i 181,862 | $ | i 214,670 | |||
Adjustments
to reconcile net income to net cash provided by operating activities: | |||||||
Depreciation, amortization and impairment of long-lived assets | i 83,335 | i 84,070 | |||||
Amortization
of lease right-of-use asset | i 61,797 | i — | |||||
Net
pension benefit and special separation benefit expense | ( i 33,061 | ) | ( i 55,458 | ) | |||
Gain
on marketable equity securities and cost method investments, net | ( i 54,341 | ) | ( i 36,793 | ) | |||
Gain
on disposition of businesses, property, plant and equipment and investments, net | ( i 28,871 | ) | ( i 13,379 | ) | |||
Provision
for doubtful trade and other receivables | i 21,532 | i 7,858 | |||||
Debt
extinguishment costs | i — | i 10,563 | |||||
Stock-based
compensation expense, net | i 4,752 | i 5,172 | |||||
Foreign
exchange (gain) loss | ( i 1,284 | ) | i 2,205 | ||||
Write-down
of cost method investments | i — | i 2,500 | |||||
Equity
in earnings of affiliates, net of distributions | ( i 3,882 | ) | ( i 10,294 | ) | |||
Provision
(benefit) for deferred income taxes | i 26,310 | ( i 10,867 | ) | ||||
Change
in operating assets and liabilities: | |||||||
Accounts receivable, net | ( i 47,308 | ) | i 47,342 | ||||
Inventories | ( i 11,969 | ) | ( i 10,913 | ) | |||
Accounts
payable and accrued liabilities | ( i 60,708 | ) | ( i 95,100 | ) | |||
Deferred
revenue | i 24,920 | i 38,148 | |||||
Income
taxes receivable | i 5,526 | i 23,073 | |||||
Other
assets and other liabilities, net | ( i 96,913 | ) | ( i 12,844 | ) | |||
Other | i 587 | i 1,905 | |||||
Net
Cash Provided by Operating Activities | i 72,284 | i 191,858 | |||||
Cash
Flows from Investing Activities | |||||||
Investments in certain businesses, net of cash acquired | ( i 162,060 | ) | ( i 111,451 | ) | |||
Purchases
of property, plant and equipment | ( i 75,712 | ) | ( i 58,850 | ) | |||
Net
proceeds (payments) from disposition of businesses, property, plant and equipment and investments | i 53,785 | ( i 13,483 | ) | ||||
Investments
in equity affiliates, cost method and other investments | ( i 25,836 | ) | ( i 10,679 | ) | |||
Proceeds
from sales of marketable equity securities | i 17,586 | i 66,741 | |||||
Purchases
of marketable equity securities | ( i 7,499 | ) | i — | ||||
Loan
to related party and advance related to Kaplan University transaction | ( i 3,500 | ) | ( i 28,061 | ) | |||
Return
of investment in equity affiliates | i 786 | i 4,521 | |||||
Net
Cash Used in Investing Activities | ( i 202,450 | ) | ( i 151,262 | ) | |||
Cash
Flows from Financing Activities | |||||||
Common shares repurchased | i — | ( i 110,848 | ) | ||||
Issuance
of borrowings | i 30,000 | i 400,000 | |||||
Net
borrowing under revolving credit facility | i 5,000 | i — | |||||
Net
proceeds from vehicle floor plan payable | i 15,106 | i — | |||||
Dividends
paid | ( i 22,167 | ) | ( i 21,564 | ) | |||
Issuance
of noncontrolling interest | i 6,536 | i — | |||||
Purchase
of noncontrolling interest | ( i 550 | ) | ( i 16,500 | ) | |||
Repayments
of borrowings and early redemption premium | ( i 7,901 | ) | ( i 417,112 | ) | |||
Payments
of debt financing costs | ( i 33 | ) | ( i 6,490 | ) | |||
Other | ( i 356 | ) | i 5,303 | ||||
Net
Cash Provided by (Used in) Financing Activities | i 25,635 | ( i 167,211 | ) | ||||
Effect
of Currency Exchange Rate Change | ( i 2,177 | ) | ( i 4,216 | ) | |||
Net
Decrease in Cash and Cash Equivalents and Restricted Cash | ( i 106,708 | ) | ( i 130,831 | ) | |||
Beginning
Cash and Cash Equivalents and Restricted Cash | i 264,115 | i 407,566 | |||||
Ending
Cash and Cash Equivalents and Restricted Cash | $ | i 157,407 | $ | i 276,735 | |||
(in
thousands) | 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, 2018 | $ | i 20,000 | $ | i 378,837 | $ | i 6,236,125 | $ | i 203,829 | $ | ( i 3,922,009 | ) | $ | i — | $ | i 2,916,782 | $ | i 4,346 | ||||||||
Net
income for the period | i 81,702 | i 81,702 | |||||||||||||||||||||||
Issuance
of noncontrolling interest | i 6,000 | i 6,000 | |||||||||||||||||||||||
Net
loss attributable to noncontrolling interest | i 62 | ( i 62 | ) | i — | |||||||||||||||||||||
Net
income attributable to redeemable noncontrolling interests | ( i 16 | ) | ( i 16 | ) | i 16 | ||||||||||||||||||||
Change
in redemption value of redeemable noncontrolling interests | ( i 54 | ) | ( i 54 | ) | i 54 | ||||||||||||||||||||
Dividends
on common stock | ( i 14,779 | ) | ( i 14,779 | ) | |||||||||||||||||||||
Issuance
of Class B common stock, net of restricted stock award forfeitures | ( i 3,783 | ) | i 3,755 | ( i 28 | ) | ||||||||||||||||||||
Amortization
of unearned stock compensation and stock option expense | i 1,639 | i 1,639 | |||||||||||||||||||||||
Other
comprehensive income, net of income taxes | i 8,290 | i 8,290 | |||||||||||||||||||||||
Purchase
of redeemable noncontrolling interest | i — | ( i 550 | ) | ||||||||||||||||||||||
As
of March 31, 2019 | $ | i 20,000 | $ | i 376,639 | $ | i 6,303,094 | $ | i 212,119 | $ | ( i 3,918,254 | ) | $ | i 5,938 | $ | i 2,999,536 | $ | i 3,866 | ||||||||
Net
income for the period | i 57,195 | i 57,195 | |||||||||||||||||||||||
Net
income attributable to noncontrolling interest | ( i 104 | ) | i 104 | i — | |||||||||||||||||||||
Net
income attributable to redeemable noncontrolling interests | ( i 10 | ) | ( i 10 | ) | i 10 | ||||||||||||||||||||
Dividends
on common stock | ( i 7,388 | ) | ( i 7,388 | ) | |||||||||||||||||||||
Amortization
of unearned stock compensation and stock option expense | i 1,616 | i 1,616 | |||||||||||||||||||||||
Other
comprehensive loss, net of income taxes | ( i 12,095 | ) | ( i 12,095 | ) | |||||||||||||||||||||
As
of June 30, 2019 | $ | i 20,000 | $ | i 378,255 | $ | i 6,352,787 | $ | i 200,024 | $ | ( i 3,918,254 | ) | $ | i 6,042 | $ | i 3,038,854 | $ | i 3,876 | ||||||||
Net
income for the period | i 42,965 | i 42,965 | |||||||||||||||||||||||
Issuance
of noncontrolling interest | i 536 | i 536 | |||||||||||||||||||||||
Net
loss attributable to noncontrolling interest | i 207 | ( i 207 | ) | i — | |||||||||||||||||||||
Acquisition
of noncontrolling interest | i 530 | i 530 | |||||||||||||||||||||||
Net
income attributable to redeemable noncontrolling interests | ( i 27 | ) | ( i 27 | ) | i 27 | ||||||||||||||||||||
Dividends
on common stock | ( i 7,386 | ) | ( i 7,386 | ) | |||||||||||||||||||||
Issuance
of Class B common stock, net of restricted stock award forfeitures | ( i 1 | ) | ( i 143 | ) | ( i 144 | ) | |||||||||||||||||||
Amortization
of unearned stock compensation and stock option expense | i 1,669 | i 1,669 | |||||||||||||||||||||||
Other
comprehensive loss, net of income taxes | ( i 18,086 | ) | ( i 18,086 | ) | |||||||||||||||||||||
As
of September 30, 2019 | $ | i 20,000 | $ | i 379,923 | $ | i 6,388,546 | $ | i 181,938 | $ | ( i 3,918,397 | ) | $ | i 6,901 | $ | i 3,058,911 | $ | i 3,903 | ||||||||
(in
thousands) | 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, 2017 | $ | i 20,000 | $ | i 370,700 | $ | i 5,791,724 | $ | i 535,555 | $ | ( i 3,802,834 | ) | $ | i — | $ | i 2,915,145 | $ | i 4,607 | ||||||||
Net
income for the period | i 42,965 | i 42,965 | |||||||||||||||||||||||
Net
income attributable to redeemable noncontrolling interests | ( i 73 | ) | ( i 73 | ) | i 73 | ||||||||||||||||||||
Dividends
on common stock | ( i 14,638 | ) | ( i 14,638 | ) | |||||||||||||||||||||
Repurchase
of Class B common stock | ( i 79,001 | ) | ( i 79,001 | ) | |||||||||||||||||||||
Issuance
of Class B common stock, net of restricted stock award forfeitures | ( i 189 | ) | i 119 | ( i 70 | ) | ||||||||||||||||||||
Amortization
of unearned stock compensation and stock option expense | i 2,325 | i 2,325 | |||||||||||||||||||||||
Other
comprehensive income, net of income taxes | i 10,812 | i 10,812 | |||||||||||||||||||||||
Cumulative
effect of accounting change | i 201,812 | ( i 194,889 | ) | i 6,923 | |||||||||||||||||||||
As
of March 31, 2018 | $ | i 20,000 | $ | i 372,836 | $ | i 6,021,790 | $ | i 351,478 | $ | ( i 3,881,716 | ) | $ | i — | $ | i 2,884,388 | $ | i 4,680 | ||||||||
Net
income for the period | i 46,635 | i 46,635 | |||||||||||||||||||||||
Net
income attributable to redeemable noncontrolling interests | ( i 70 | ) | ( i 70 | ) | i 70 | ||||||||||||||||||||
Dividends
on common stock | ( i 6,949 | ) | ( i 6,949 | ) | |||||||||||||||||||||
Repurchase
of Class B common stock | ( i 15,091 | ) | ( i 15,091 | ) | |||||||||||||||||||||
Issuance
of Class B common stock, net of restricted stock award forfeitures | ( i 496 | ) | ( i 494 | ) | ( i 990 | ) | |||||||||||||||||||
Amortization
of unearned stock compensation and stock option expense | i 2,162 | i 2,162 | |||||||||||||||||||||||
Other
comprehensive loss, net of income taxes | ( i 33,221 | ) | ( i 33,221 | ) | |||||||||||||||||||||
As
of June 30, 2018 | $ | i 20,000 | $ | i 374,502 | $ | i 6,061,406 | $ | i 318,257 | $ | ( i 3,897,301 | ) | $ | i — | $ | i 2,876,864 | $ | i 4,750 | ||||||||
Net
income for the period | i 125,070 | i 125,070 | |||||||||||||||||||||||
Net
income attributable to redeemable noncontrolling interests | ( i 6 | ) | ( i 6 | ) | i 6 | ||||||||||||||||||||
Dividends
on common stock | ( i 7,048 | ) | ( i 7,048 | ) | |||||||||||||||||||||
Repurchase
of Class B common stock | ( i 16,757 | ) | ( i 16,757 | ) | |||||||||||||||||||||
Issuance
of Class B common stock, net of restricted stock award forfeitures | ( i 27 | ) | i | ( i 27 | ) | ||||||||||||||||||||
Amortization
of unearned stock compensation and stock option expense | i 1,937 | i 1,937 | |||||||||||||||||||||||
Other
comprehensive loss, net of income taxes | ( i 5,202 | ) | ( i 5,202 | ) | |||||||||||||||||||||
Other | i — | ( i 50 | ) | ||||||||||||||||||||||
As
of September 30, 2018 | $ | i 20,000 | $ | i 376,412 | $ | i 6,179,422 | $ | i 313,055 | $ | ( i 3,914,058 | ) | $ | i — | $ | i 2,974,831 | $ | i 4,706 | ||||||||
Balance as of December 31, 2018 | Adjustments | Balance as of January 1, 2019 | |||||||
Assets | |||||||||
Other
current assets | $ | i 82,723 | $ | ( i 5,595 | ) | $ | i 77,128 | ||
Lease
Right-of-Use Assets | i — | i 369,333 | i 369,333 | ||||||
Liabilities | |||||||||
Accounts
payable and accrued liabilities | $ | i 486,578 | $ | ( i 14,029 | ) | $ | i 472,549 | ||
Current
portion of lease liabilities | i — | i 86,747 | i 86,747 | ||||||
Other
Liabilities | i 57,901 | ( i 40,500 | ) | i 17,401 | |||||
Lease
Liabilities | i — | i 331,520 | i 331,520 | ||||||
Purchase
Price Allocation | |||||||
Nine Months Ended | Year Ended | ||||||
(in thousands) | |||||||
Accounts receivable | $ | i 4,697 | $ | i 2,344 | |||
Inventory | i 31,750 | i 1,268 | |||||
Property,
plant and equipment | i 52,577 | i 1,518 | |||||
Lease
Right-of-Use Assets | i 100,933 | i — | |||||
Goodwill | i 63,387 | i 41,840 | |||||
Indefinite-lived
intangible assets | i 46,900 | i — | |||||
Amortized
intangible assets | i 21,291 | i 78,427 | |||||
Other
assets | i 8,352 | i 5,198 | |||||
Floor
plan payables | ( i 25,755 | ) | i — | ||||
Other
liabilities | ( i 38,828 | ) | ( i 7,678 | ) | |||
Deferred
income taxes | ( i 2,191 | ) | ( i 4,900 | ) | |||
Current
and noncurrent lease liabilities | ( i 97,996 | ) | i — | ||||
Noncontrolling
interest | ( i 530 | ) | i — | ||||
Aggregate
purchase price, net of cash acquired | $ | i 164,587 | $ | i 118,017 | |||
Three
Months Ended September 30 | Nine Months Ended September 30 | ||||||||||||||
(in thousands) | 2019 | 2018 | 2019 | 2018 | |||||||||||
Operating revenues | $ | i 750,076 | $ | i 787,808 | $ | i 2,267,502 | $ | i 2,349,342 | |||||||
Net
income | i 43,849 | i 125,761 | i 178,551 | i 217,589 | |||||||||||
(in thousands) | Three Months Ended September 30, 2018 | Nine Months Ended September 30, 2018 | |||||
Revenue | $ | i — | $ | i 91,526 | |||
Operating
income | i — | i 213 | |||||
As of | |||||||
(in
thousands) | |||||||
Total cost | $ | i 282,349 | $ | i 282,563 | |||
Gross
unrealized gains | i 253,215 | i 216,111 | |||||
Gross
unrealized losses | i — | ( i 2,284 | ) | ||||
Total
Fair Value | $ | i 535,564 | $ | i 496,390 | |||
Three
Months Ended September 30 | Nine Months Ended September 30 | ||||||||||||||
(in thousands) | 2019 | 2018 | 2019 | 2018 | |||||||||||
Gain on marketable equity securities, net | $ | i 17,404 | $ | i 44,962 | $ | i 49,261 | $ | i 28,306 | |||||||
Less:
Net losses (gains) in earnings from marketable equity securities sold and donated | i 61 | i — | ( i 2,919 | ) | i 4,271 | ||||||||||
Net
unrealized gains in earnings from marketable equity securities still held at the end of the period | $ | i 17,465 | $ | i 44,962 | $ | i 46,342 | $ | i 32,577 | |||||||
As of | |||||||
(in thousands) | |||||||
Receivables from contracts with customers, less doubtful accounts of $13,060 and $14,775 | $ | i 582,944 | $ | i 538,021 | |||
Other
receivables | i 29,197 | i 44,259 | |||||
$ | i 612,141 | $ | i 582,280 | ||||
As of | |||||||
(in thousands) | |||||||
Raw materials | $ | i 35,776 | $ | i 37,248 | |||
Work-in-process | i 11,176 | i 11,633 | |||||
Finished
goods | i 62,451 | i 17,861 | |||||
Contracts
in progress | i 3,793 | i 2,735 | |||||
$ | i 113,196 | $ | i 69,477 | ||||
(in
thousands) | Three Months Ended September 30, 2019 | Nine Months Ended September 30, 2019 | |||||
Operating lease cost | $ | i 26,242 | $ | i 75,531 | |||
Short-term
and month-to-month lease cost | i 4,502 | i 14,275 | |||||
Variable
lease cost | i 5,601 | i 15,563 | |||||
Sublease
income | ( i 5,222 | ) | ( i 14,915 | ) | |||
Total
net lease cost | $ | i 31,123 | $ | i 90,454 | |||
(in thousands) | Nine Months Ended September 30, 2019 | ||
Cash Flow Information: | |||
Operating cash flows from operating leases (payments) | $ | i 88,369 | |
Right-of-use
assets obtained in exchange for new operating lease liabilities (noncash) | i 205,455 | ||
As
of September 30, 2019 | |||
Balance Sheet Information: | |||
Lease right-of-use assets | $ | i 503,830 | |
Current
lease liabilities | $ | i 78,114 | |
Noncurrent lease liabilities | i 462,868 | ||
Total
lease liabilities | $ | i 540,982 | |
Weighted average remaining lease term (years) | i 10.8 | ||
Weighted
average discount rate | i 4.3 | % | |
(in thousands) | |||
2019 | $ | i 20,271 | |
2020 | i 103,515 | ||
2021 | i 86,245 | ||
2022 | i 71,147 | ||
2023 | i 62,384 | ||
Thereafter | i 358,758 | ||
Total
payments | i 702,320 | ||
Less: Imputed interest | ( i 161,338 | ) | |
Total | $ | i 540,982 | |
(in
thousands) | |||
2019 | $ | i 101,009 | |
2020 | i 84,945 | ||
2021 | i 72,031 | ||
2022 | i 53,709 | ||
2023 | i 47,091 | ||
Thereafter | i 115,948 | ||
$ | i 474,733 | ||
(in
thousands) | Education | Television Broadcasting | Manufacturing | Healthcare | SocialCode | Other Businesses | Total | ||||||||||||||||||||
Balance
as of December 31, 2018 | |||||||||||||||||||||||||||
Goodwill | $ | i 1,128,699 | $ | i 190,815 | $ | i 231,479 | $ | i 69,626 | $ | i 15,860 | $ | i 7,685 | $ | i 1,644,164 | |||||||||||||
Accumulated
impairment losses | ( i 331,151 | ) | i — | ( i 7,616 | ) | i — | i — | ( i 7,685 | ) | ( i 346,452 | ) | ||||||||||||||||
i 797,548 | i 190,815 | i 223,863 | i 69,626 | i 15,860 | i — | i 1,297,712 | |||||||||||||||||||||
Acquisitions | i 6,391 | i — | i 2,714 | i 8,283 | i — | i 45,999 | i 63,387 | ||||||||||||||||||||
Foreign
currency exchange rate changes | ( i 15,706 | ) | i — | i — | i — | i — | i — | ( i 15,706 | ) | ||||||||||||||||||
Balance
as of September 30, 2019 | |||||||||||||||||||||||||||
Goodwill | i 1,119,384 | i 190,815 | i 234,193 | i 77,909 | i 15,860 | i 53,684 | i 1,691,845 | ||||||||||||||||||||
Accumulated
impairment losses | ( i 331,151 | ) | i — | ( i 7,616 | ) | i — | i — | ( i 7,685 | ) | ( i 346,452 | ) | ||||||||||||||||
$ | i 788,233 | $ | i 190,815 | $ | i 226,577 | $ | i 77,909 | $ | i 15,860 | $ | i 45,999 | $ | i 1,345,393 | ||||||||||||||
(in thousands) | Kaplan International | Higher
Education | Test Preparation | Professional (U.S.) | Total | ||||||||||||||
Balance as of December 31, 2018 | |||||||||||||||||||
Goodwill | $ | i 583,424 | $ | i 174,564 | $ | i 166,920 | $ | i 203,791 | $ | i 1,128,699 | |||||||||
Accumulated
impairment losses | i — | ( i 111,324 | ) | ( i 102,259 | ) | ( i 117,568 | ) | ( i 331,151 | ) | ||||||||||
i 583,424 | i 63,240 | i 64,661 | i 86,223 | i 797,548 | |||||||||||||||
Acquisitions | i 6,391 | i — | i — | i — | i 6,391 | ||||||||||||||
Foreign
currency exchange rate changes | ( i 15,760 | ) | i — | i — | i 54 | ( i 15,706 | ) | ||||||||||||
Balance
as of September 30, 2019 | |||||||||||||||||||
Goodwill | i 574,055 | i 174,564 | i 166,920 | i 203,845 | i 1,119,384 | ||||||||||||||
Accumulated
impairment losses | i — | ( i 111,324 | ) | ( i 102,259 | ) | ( i 117,568 | ) | ( i 331,151 | ) | ||||||||||
$ | i 574,055 | $ | i 63,240 | $ | i 64,661 | $ | i 86,277 | $ | i 788,233 | ||||||||||
As of September
30, 2019 | As of December 31, 2018 | ||||||||||||||||||||||||
(in thousands) | Useful Life Range | Gross Carrying Amount | Accumulated Amortization | Net
Carrying Amount | Gross Carrying Amount | Accumulated Amortization | Net Carrying Amount | ||||||||||||||||||
Amortized Intangible Assets | |||||||||||||||||||||||||
Student
and customer relationships | 2–10 years | $ | i 291,662 | $ | i 136,319 | $ | i 155,343 | $ | i 282,761 | $ | i 114,429 | $ | i 168,332 | ||||||||||||
Trade
names and trademarks | 2–10 years | i 92,568 | i 46,204 | i 46,364 | i 87,285 | i 39,825 | i 47,460 | ||||||||||||||||||
Network
affiliation agreements | 10 years | i 17,400 | i 4,712 | i 12,688 | i 17,400 | i 3,408 | i 13,992 | ||||||||||||||||||
Databases
and technology | 3–6 years | i 30,274 | i 12,221 | i 18,053 | i 27,041 | i 8,471 | i 18,570 | ||||||||||||||||||
Noncompete
agreements | 2–5 years | i 1,353 | i 931 | i 422 | i 1,088 | i 838 | i 250 | ||||||||||||||||||
Other | 1–8
years | i 24,890 | i 12,367 | i 12,523 | i 24,530 | i 9,873 | i 14,657 | ||||||||||||||||||
$ | i 458,147 | $ | i 212,754 | $ | i 245,393 | $ | i 440,105 | $ | i 176,844 | $ | i 263,261 | ||||||||||||||
Indefinite-Lived
Intangible Assets | |||||||||||||||||||||||||
Trade
names and trademarks | $ | i 97,527 | $ | i 80,102 | |||||||||||||||||||||
Franchise
agreements | i 28,000 | i — | |||||||||||||||||||||||
FCC
licenses | i 18,800 | i 18,800 | |||||||||||||||||||||||
Licensure
and accreditation | i 150 | i 150 | |||||||||||||||||||||||
$ | i 144,477 | $ | i 99,052 | ||||||||||||||||||||||
As of | |||||||
(in
thousands) | |||||||
5.75% unsecured notes due June 1, 2026 (1) | $ | i 395,212 | $ | i 394,675 | |||
U.K.
credit facility (2) | i 73,683 | i 82,366 | |||||
Commercial
note | i 28,250 | i — | |||||
USD
revolving credit facility | i 5,000 | i — | |||||
Other
indebtedness | i 87 | i 96 | |||||
Total
Debt | $ | i 502,232 | $ | i 477,137 | |||
Less:
current portion | ( i 81,697 | ) | ( i 6,360 | ) | |||
Total
Long-Term Debt | $ | i 420,535 | $ | i 470,777 | |||
(1)
| The carrying value is net of $ i 4.8 million and $ i 5.3
million of unamortized debt issuance costs as of September 30, 2019 and December 31, 2018, respectively. |
(2) | The carrying value is net of $ i 0.1
million and $ i 0.2 million of unamortized debt issuance costs as of September 30, 2019 and December 31, 2018, respectively. |
As
of September 30, 2019 | |||||||||||
(in thousands) | Level 1 | Level 2 | Total | ||||||||
Assets | |||||||||||
Marketable
equity securities (1) | $ | i 535,564 | $ | i — | $ | i 535,564 | |||||
Other
current investments (2) | i 13,601 | i 5,045 | i 18,646 | ||||||||
Interest
rate swap (3) | i — | i 162 | i 162 | ||||||||
Total
Financial Assets | $ | i 549,165 | $ | i 5,207 | $ | i 554,372 | |||||
Liabilities | |||||||||||
Deferred
compensation plan liabilities (4) | $ | i — | $ | i 33,195 | $ | i 33,195 | |||||
Interest
rate swap (5) | i — | i 706 | i 706 | ||||||||
Total
Financial Liabilities | $ | i — | $ | i 33,901 | $ | i 33,901 | |||||
As
of December 31, 2018 | |||||||||||
(in thousands) | Level 1 | Level 2 | Total | ||||||||
Assets | |||||||||||
Money
market investments (6) | $ | i — | $ | i 75,500 | $ | i 75,500 | |||||
Marketable
equity securities (1) | i 496,390 | i — | i 496,390 | ||||||||
Other
current investments (2) | i 11,203 | i 6,988 | i 18,191 | ||||||||
Interest
rate swap (3) | i — | i 369 | i 369 | ||||||||
Total
Financial Assets | $ | i 507,593 | $ | i 82,857 | $ | i 590,450 | |||||
Liabilities | |||||||||||
Deferred
compensation plan liabilities (4) | $ | i — | $ | i 36,080 | $ | i 36,080 | |||||
(1) | The
Company’s investments in marketable equity securities are held in common shares of U.S. corporations that are actively traded on U.S. stock exchanges. Price quotes for these shares are readily available. |
(2) | 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 fair value hierarchy. |
(3) | Included
in Other Current Assets. 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. |
(4) | 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. |
(5) | 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. |
(6)
| The Company’s money market investments are included in Cash and Cash Equivalents and the value considers the liquidity of the counterparty. |
As of | ||||||||
% | ||||||||
(in
thousands) | Change | |||||||
Deferred revenue | $ | i 341,682 | $ | i 311,214 | i 10 | |||
(in thousands) | Balance at Beginning of
Period | Costs associated with new contracts | Less: Costs amortized during the period | Other | Balance at End of Period | ||||||||||||||
2019 | $ | i 21,311 | $ | i 29,381 | $ | ( i 34,729 | ) | $ | ( i 312 | ) | $ | i 15,651 | |||||||
Three Months Ended September 30 | Nine Months Ended September 30 | ||||||||||||||
(in thousands, except per share amounts) | 2019 | 2018 | 2019 | 2018 | |||||||||||
Numerator: | |||||||||||||||
Numerator
for basic earnings per share: | |||||||||||||||
Net income attributable to Graham Holdings Company common stockholders | $ | i 43,145 | $ | i 125,064 | $ | i 181,974 | $ | i 214,521 | |||||||
Less:
Dividends paid-common stock outstanding and unvested restricted shares | ( i 7,386 | ) | ( i 7,048 | ) | ( i 29,554 | ) | ( i 28,635 | ) | |||||||
Undistributed
earnings | i 35,759 | i 118,016 | i 152,420 | i 185,886 | |||||||||||
Percent
allocated to common stockholders | i 99.44 | % | i 99.34 | % | i 99.44 | % | i 99.34 | % | |||||||
i 35,559 | i 117,235 | i 151,570 | i 184,657 | ||||||||||||
Add:
Dividends paid-common stock outstanding | i 7,345 | i 7,001 | i 29,389 | i 28,447 | |||||||||||
Numerator
for basic earnings per share | $ | i 42,904 | $ | i 124,236 | $ | i 180,959 | $ | i 213,104 | |||||||
Add:
Additional undistributed earnings due to dilutive stock options | i 2 | i 5 | i 7 | i 8 | |||||||||||
Numerator
for diluted earnings per share | $ | i 42,906 | $ | i 124,241 | $ | i 180,966 | $ | i 213,112 | |||||||
Denominator: | |||||||||||||||
Denominator
for basic earnings per share: | |||||||||||||||
Weighted average shares outstanding | i 5,285 | i 5,302 | i 5,285 | i 5,354 | |||||||||||
Add:
Effect of dilutive stock options | i 44 | i 35 | i 43 | i 36 | |||||||||||
Denominator
for diluted earnings per share | i 5,329 | i 5,337 | i 5,328 | i 5,390 | |||||||||||
Graham
Holdings Company Common Stockholders: | |||||||||||||||
Basic earnings per share | $ | i 8.12 | $ | i 23.43 | $ | i 34.24 | $ | i 39.81 | |||||||
Diluted
earnings per share | $ | i 8.05 | $ | i 23.28 | $ | i 33.96 | $ | i 39.54 | |||||||
Three Months Ended September 30 | Nine Months Ended September 30 | ||||||||||
(in thousands) | 2019 | 2018 | 2019 | 2018 | |||||||
Weighted
average restricted stock | i 14 | i 21 | i 12 | i 23 | |||||||
Three
Months Ended September 30 | Nine Months Ended September 30 | ||||||||||||||
(in thousands) | 2019 | 2018 | 2019 | 2018 | |||||||||||
Service cost | $ | i 5,142 | $ | i 4,473 | $ | i 15,326 | $ | i 13,730 | |||||||
Interest
cost | i 11,743 | i 11,844 | i 35,078 | i 34,943 | |||||||||||
Expected
return on assets | ( i 30,832 | ) | ( i 31,969 | ) | ( i 91,955 | ) | ( i 97,251 | ) | |||||||
Amortization
of prior service cost | i 824 | i 36 | i 2,058 | i 114 | |||||||||||
Recognized
actuarial gain | i — | ( i 2,974 | ) | i — | ( i 6,994 | ) | |||||||||
Net
Periodic Benefit | ( i 13,123 | ) | ( i 18,590 | ) | ( i 39,493 | ) | ( i 55,458 | ) | |||||||
Curtailment
gain | i — | i — | i — | ( i 806 | ) | ||||||||||
Special
separation benefit expense | ( i 175 | ) | i — | i 6,432 | i — | ||||||||||
Total
Benefit | $ | ( i 13,298 | ) | $ | ( i 18,590 | ) | $ | ( i 33,061 | ) | $ | ( i 56,264 | ) | |||
Three
Months Ended September 30 | Nine Months Ended September 30 | ||||||||||||||
(in thousands) | 2019 | 2018 | 2019 | 2018 | |||||||||||
Service cost | $ | i 214 | $ | i 205 | $ | i 643 | $ | i 614 | |||||||
Interest
cost | i 1,079 | i 967 | i 3,236 | i 2,899 | |||||||||||
Amortization
of prior service cost | i 85 | i 77 | i 254 | i 233 | |||||||||||
Recognized
actuarial loss | i 579 | i 600 | i 1,736 | i 1,802 | |||||||||||
Net
Periodic Cost | $ | i 1,957 | $ | i 1,849 | $ | i 5,869 | $ | i 5,548 | |||||||
As of | |||||
U.S.
equities | i 55 | % | i 53 | % | |
U.S.
stock index fund | i 21 | % | i 28 | % | |
U.S.
fixed income | i 17 | % | i 13 | % | |
International
equities | i 7 | % | i 6 | % | |
i 100 | % | i 100 | % | ||
Three
Months Ended September 30 | Nine Months Ended September 30 | ||||||||||||||
(in thousands) | 2019 | 2018 | 2019 | 2018 | |||||||||||
Service cost | $ | i — | $ | i 267 | $ | i — | $ | i 803 | |||||||
Interest
cost | i 72 | i 170 | i 216 | i 509 | |||||||||||
Amortization
of prior service credit | ( i 1,841 | ) | ( i 44 | ) | ( i 5,522 | ) | ( i 132 | ) | |||||||
Recognized
actuarial gain | ( i 1,090 | ) | ( i 921 | ) | ( i 3,270 | ) | ( i 2,764 | ) | |||||||
Net
Periodic Benefit | $ | ( i 2,859 | ) | $ | ( i 528 | ) | $ | ( i 8,576 | ) | $ | ( i 1,584 | ) | |||
Three
Months Ended September 30 | Nine Months Ended September 30 | ||||||||||||||
(in thousands) | 2019 | 2018 | 2019 | 2018 | |||||||||||
Gain on sale of an equity affiliate | $ | i — | $ | i — | $ | i 28,994 | $ | i — | |||||||
Gain
on cost method investments | i 3,669 | i 8,487 | i 5,080 | i 8,487 | |||||||||||
Foreign
currency gain (loss), net | i 661 | ( i 116 | ) | i 1,284 | ( i 2,205 | ) | |||||||||
Impairment
of a cost method investment | i — | ( i 2,500 | ) | i — | ( i 2,500 | ) | |||||||||
Gain
on sales of businesses | i 486 | i 916 | i 907 | i 8,157 | |||||||||||
Gain
on sale of cost method investments | i 259 | i — | i 259 | i 2,845 | |||||||||||
(Loss)
gain on sale of property, plant and equipment | ( i 38 | ) | i — | ( i 82 | ) | i 2,542 | |||||||||
Other
gain (loss), net | i 519 | ( i 3,645 | ) | ( i 307 | ) | ( i 2,664 | ) | ||||||||
Total
Other Non-Operating Income | $ | i 5,556 | $ | i 3,142 | $ | i 36,135 | $ | i 14,662 | |||||||
Three Months Ended September 30 | |||||||||||||||||||||||
2019 | 2018 | ||||||||||||||||||||||
Before-Tax | Income | After-Tax | Before-Tax | Income | After-Tax | ||||||||||||||||||
(in
thousands) | Amount | Tax | Amount | Amount | Tax | Amount | |||||||||||||||||
Foreign currency translation adjustments: | |||||||||||||||||||||||
Translation
adjustments arising during the period | $ | ( i 16,684 | ) | $ | i — | $ | ( i 16,684 | ) | $ | ( i 2,844 | ) | $ | i — | $ | ( i 2,844 | ) | |||||||
Pension
and other postretirement plans: | |||||||||||||||||||||||
Amortization of net prior service (credit) cost included in net income | ( i 932 | ) | i 252 | ( i 680 | ) | i 69 | ( i 18 | ) | i 51 | ||||||||||||||
Amortization
of net actuarial gain included in net income | ( i 511 | ) | i 138 | ( i 373 | ) | ( i 3,295 | ) | i 891 | ( i 2,404 | ) | |||||||||||||
( i 1,443 | ) | i 390 | ( i 1,053 | ) | ( i 3,226 | ) | i 873 | ( i 2,353 | ) | ||||||||||||||
Cash
flow hedges: | |||||||||||||||||||||||
Loss for the period | ( i 477 | ) | i 128 | ( i 349 | ) | ( i 6 | ) | i 1 | ( i 5 | ) | |||||||||||||
Other
Comprehensive Loss | $ | ( i 18,604 | ) | $ | i 518 | $ | ( i 18,086 | ) | $ | ( i 6,076 | ) | $ | i 874 | $ | ( i 5,202 | ) | |||||||
Nine
Months Ended September 30 | |||||||||||||||||||||||
2019 | 2018 | ||||||||||||||||||||||
Before-Tax | Income | After-Tax | Before-Tax | Income | After-Tax | ||||||||||||||||||
(in
thousands) | Amount | Tax | Amount | Amount | Tax | Amount | |||||||||||||||||
Foreign currency translation adjustments: | |||||||||||||||||||||||
Translation
adjustments arising during the period | $ | ( i 17,755 | ) | $ | i — | $ | ( i 17,755 | ) | $ | ( i 22,447 | ) | $ | i — | $ | ( i 22,447 | ) | |||||||
Pension
and other postretirement plans: | |||||||||||||||||||||||
Amortization of net prior service (credit) cost included in net income | ( i 3,210 | ) | i 867 | ( i 2,343 | ) | i 215 | ( i 58 | ) | i 157 | ||||||||||||||
Amortization
of net actuarial gain included in net income | ( i 1,534 | ) | i 414 | ( i 1,120 | ) | ( i 7,956 | ) | i 2,148 | ( i 5,808 | ) | |||||||||||||
( i 4,744 | ) | i 1,281 | ( i 3,463 | ) | ( i 7,741 | ) | i 2,090 | ( i 5,651 | ) | ||||||||||||||
Cash
flow hedges: | |||||||||||||||||||||||
(Loss) gain for the period | ( i 904 | ) | i 231 | ( i 673 | ) | i 601 | ( i 114 | ) | i 487 | ||||||||||||||
Other
Comprehensive Loss | $ | ( i 23,403 | ) | $ | i 1,512 | $ | ( i 21,891 | ) | $ | ( i 29,587 | ) | $ | i 1,976 | $ | ( i 27,611 | ) | |||||||
(in thousands, net of taxes) | Cumulative Foreign Currency Translation Adjustment | Unrealized
Gain on Pensions and Other Postretirement Plans | Cash Flow Hedges | Accumulated Other Comprehensive Income | |||||||||||
Balance as of December 31, 2018 | $ | ( i 29,270 | ) | $ | i 232,836 | $ | i 263 | $ | i 203,829 | ||||||
Other
comprehensive loss before reclassifications | ( i 17,755 | ) | i — | ( i 562 | ) | ( i 18,317 | ) | ||||||||
Net
amount reclassified from accumulated other comprehensive income (loss) | i — | ( i 3,463 | ) | ( i 111 | ) | ( i 3,574 | ) | ||||||||
Other
comprehensive loss, net of tax | ( i 17,755 | ) | ( i 3,463 | ) | ( i 673 | ) | ( i 21,891 | ) | |||||||
Balance
as of September 30, 2019 | $ | ( i 47,025 | ) | $ | i 229,373 | $ | ( i 410 | ) | $ | i 181,938 | |||||
Three Months Ended September 30 | Nine Months Ended September 30 | Affected
Line Item in the Condensed Consolidated Statements of Operations | |||||||||||||||
(in thousands) | 2019 | 2018 | 2019 | 2018 | |||||||||||||
Pension
and Other Postretirement Plans: | |||||||||||||||||
Amortization of net prior service (credit) cost | $ | ( i 932 | ) | $ | i 69 | $ | ( i 3,210 | ) | $ | i 215 | (1) | ||||||
Amortization
of net actuarial gain | ( i 511 | ) | ( i 3,295 | ) | ( i 1,534 | ) | ( i 7,956 | ) | (1) | ||||||||
( i 1,443 | ) | ( i 3,226 | ) | ( i 4,744 | ) | ( i 7,741 | ) | Before
tax | |||||||||
i 390 | i 873 | i 1,281 | i 2,090 | Provision
for Income Taxes | |||||||||||||
( i 1,053 | ) | ( i 2,353 | ) | ( i 3,463 | ) | ( i 5,651 | ) | Net
of Tax | |||||||||
Cash Flow Hedges | |||||||||||||||||
( i 24 | ) | ( i 59 | ) | ( i 151 | ) | ( i 101 | ) | Interest
expense | |||||||||
i 11 | i 11 | i 40 | i 19 | Provision
for Income Taxes | |||||||||||||
( i 13 | ) | ( i 48 | ) | ( i 111 | ) | ( i 82 | ) | Net
of Tax | |||||||||
Total reclassification for the period | $ | ( i 1,066 | ) | $ | ( i 2,401 | ) | $ | ( i 3,574 | ) | $ | ( i 5,733 | ) | Net
of Tax | ||||
(1) | These accumulated other comprehensive income components are components of net periodic pension and postretirement plan cost (see Note 12) and are included in non-operating pension and postretirement benefit income in the Company’s Condensed Consolidated Statements of Operations. |
Three Months Ended | ||||||||||||
March
31, | June 30, | September 30, | ||||||||||
(in thousands) | 2019 | 2019 | 2019 | |||||||||
Operating Revenues | ||||||||||||
Education | $ | i 372,454 | $ | i 367,763 | $ | i 357,319 | ||||||
Television
broadcasting | i 108,223 | i 116,628 | i 115,161 | |||||||||
Manufacturing | i 115,157 | i 114,873 | i 111,676 | |||||||||
Healthcare | i 37,728 | i 40,641 | i 40,688 | |||||||||
SocialCode | i 13,447 | i 16,382 | i 15,975 | |||||||||
Other
businesses | i 45,230 | i 81,359 | i 98,225 | |||||||||
Corporate
office | i — | i — | i — | |||||||||
Intersegment
elimination | ( i 40 | ) | ( i 44 | ) | ( i 224 | ) | ||||||
$ | i 692,199 | $ | i 737,602 | $ | i 738,820 | |||||||
Income
(Loss) from Operations | ||||||||||||
Education | $ | i 25,595 | $ | i 26,305 | $ | ( i 7,161 | ) | |||||
Television
broadcasting | i 35,540 | i 44,494 | i 36,813 | |||||||||
Manufacturing | i 3,274 | i 4,692 | i 6,845 | |||||||||
Healthcare | i 2,329 | i 2,598 | i 1,208 | |||||||||
SocialCode | ( i 4,018 | ) | ( i 975 | ) | ( i 378 | ) | ||||||
Other
businesses | ( i 8,493 | ) | ( i 5,913 | ) | ( i 9,029 | ) | ||||||
Corporate
office | ( i 14,224 | ) | ( i 13,238 | ) | ( i 12,030 | ) | ||||||
$ | i 40,003 | $ | i 57,963 | $ | i 16,268 | |||||||
Equity
in Earnings of Affiliates, Net | i 1,679 | i 1,467 | i 4,683 | |||||||||
Interest
Expense, Net | ( i 5,725 | ) | ( i 6,807 | ) | ( i 5,302 | ) | ||||||
Non-Operating
Pension and Postretirement Benefit Income, Net | i 19,928 | i 12,253 | i 19,556 | |||||||||
Gain
on Marketable Equity Securities, Net | i 24,066 | i 7,791 | i 17,404 | |||||||||
Other
Income, Net | i 29,351 | i 1,228 | i 5,556 | |||||||||
Income
Before Income Taxes | $ | i 109,302 | $ | i 73,895 | $ | i 58,165 | ||||||
Depreciation
of Property, Plant and Equipment | ||||||||||||
Education | $ | i 6,201 | $ | i 6,137 | $ | i 6,258 | ||||||
Television
broadcasting | i 3,239 | i 3,293 | i 3,307 | |||||||||
Manufacturing | i 2,433 | i 2,384 | i 2,671 | |||||||||
Healthcare | i 610 | i 607 | i 566 | |||||||||
SocialCode | i 152 | i 384 | i 356 | |||||||||
Other
businesses | i 648 | i 837 | i 1,974 | |||||||||
Corporate
office | i 240 | i 242 | i 219 | |||||||||
$ | i 13,523 | $ | i 13,884 | $ | i 15,351 | |||||||
Amortization
of Intangible Assets and Impairment of Long-Lived Assets | ||||||||||||
Education | $ | i 3,567 | $ | i 4,070 | $ | i 3,944 | ||||||
Television
broadcasting | i 1,408 | i 1,408 | i 1,408 | |||||||||
Manufacturing | i 6,530 | i 6,528 | i 6,522 | |||||||||
Healthcare | i 1,398 | i 1,410 | i 1,914 | |||||||||
SocialCode | i 157 | i 157 | i 156 | |||||||||
Other
businesses | i — | i — | i — | |||||||||
Corporate
office | i — | i — | i — | |||||||||
$ | i 13,060 | $ | i 13,573 | $ | i 13,944 | |||||||
Pension
Service Cost | ||||||||||||
Education | $ | i 2,664 | $ | i 2,522 | $ | i 2,603 | ||||||
Television
broadcasting | i 731 | i 780 | i 762 | |||||||||
Manufacturing | i 25 | i 15 | i 20 | |||||||||
Healthcare | i 183 | i 63 | i 123 | |||||||||
SocialCode | i 248 | i 191 | i 219 | |||||||||
Other
businesses | i 201 | i 161 | i 215 | |||||||||
Corporate
office | i 1,169 | i 1,231 | i 1,200 | |||||||||
$ | i 5,221 | $ | i 4,963 | $ | i 5,142 | |||||||
Three
Months Ended | |||||||||||||||
March 31, | June 30, | September 30, | December 31, | ||||||||||||
(in thousands) | 2018 | 2018 | 2018 | 2018 | |||||||||||
Operating
Revenues | |||||||||||||||
Education | $ | i 375,499 | $ | i 370,005 | $ | i 358,601 | $ | i 346,910 | |||||||
Television
broadcasting | i 108,802 | i 114,086 | i 130,014 | i 152,647 | |||||||||||
Manufacturing | i 117,406 | i 126,462 | i 126,028 | i 117,723 | |||||||||||
Healthcare | i 37,621 | i 38,208 | i 35,486 | i 37,960 | |||||||||||
SocialCode | i 13,299 | i 14,770 | i 13,781 | i 16,878 | |||||||||||
Other
businesses | i 6,833 | i 9,167 | i 10,856 | i 17,024 | |||||||||||
Corporate
office | i — | i — | i — | i — | |||||||||||
Intersegment
elimination | ( i 24 | ) | ( i 21 | ) | i — | ( i 55 | ) | ||||||||
$ | i 659,436 | $ | i 672,677 | $ | i 674,766 | $ | i 689,087 | ||||||||
Income
(Loss) from Operations | |||||||||||||||
Education | $ | i 22,700 | $ | i 37,554 | $ | i 22,262 | $ | i 14,620 | |||||||
Television
broadcasting | i 40,542 | i 41,118 | i 55,453 | i 73,420 | |||||||||||
Manufacturing | i 8,628 | i 8,665 | i 5,146 | i 6,412 | |||||||||||
Healthcare | ( i 1,391 | ) | i 764 | ( i 8,702 | ) | i 928 | |||||||||
SocialCode | ( i 3,781 | ) | ( i 1,742 | ) | i 5,124 | ( i 682 | ) | ||||||||
Other
businesses | ( i 8,542 | ) | ( i 7,977 | ) | ( i 5,657 | ) | ( i 5,840 | ) | |||||||
Corporate
office | ( i 13,942 | ) | ( i 12,756 | ) | ( i 12,887 | ) | ( i 13,276 | ) | |||||||
$ | i 44,214 | $ | i 65,626 | $ | i 60,739 | $ | i 75,582 | ||||||||
Equity
in Earnings of Affiliates, Net | i 2,579 | i 931 | i 9,537 | i 1,426 | |||||||||||
Interest
Expense, Net | ( i 6,699 | ) | ( i 15,264 | ) | ( i 5,524 | ) | ( i 5,062 | ) | |||||||
Debt
Extinguishment Costs | i — | ( i 11,378 | ) | i — | i — | ||||||||||
Non-Operating
Pension and Postretirement Benefit Income | i 21,386 | i 23,041 | i 22,214 | i 53,900 | |||||||||||
(Loss)
Gain on Marketable Equity Securities, Net | ( i 14,102 | ) | ( i 2,554 | ) | i 44,962 | ( i 44,149 | ) | ||||||||
Other
Income (Loss), Net | i 9,187 | i 2,333 | i 3,142 | ( i 12,559 | ) | ||||||||||
Income
from Continuing Operations Before Income Taxes | $ | i 56,565 | $ | i 62,735 | $ | i 135,070 | $ | i 69,138 | |||||||
Depreciation
of Property, Plant and Equipment | |||||||||||||||
Education | $ | i 7,606 | $ | i 6,839 | $ | i 6,685 | $ | i 6,969 | |||||||
Television
broadcasting | i 3,071 | i 2,974 | i 3,198 | i 3,961 | |||||||||||
Manufacturing | i 2,451 | i 2,331 | i 2,333 | i 2,400 | |||||||||||
Healthcare | i 653 | i 647 | i 648 | i 629 | |||||||||||
SocialCode | i 233 | i 200 | i 187 | i 177 | |||||||||||
Other
businesses | i 375 | i 375 | i 345 | i 428 | |||||||||||
Corporate
office | i 253 | i 253 | i 252 | i 249 | |||||||||||
$ | i 14,642 | $ | i 13,619 | $ | i 13,648 | $ | i 14,813 | ||||||||
Amortization
of Intangible Assets and Impairment of Long-lived Assets | |||||||||||||||
Education | $ | i 1,149 | $ | i 1,663 | $ | i 2,682 | $ | i 3,868 | |||||||
Television
broadcasting | i 1,408 | i 1,408 | i 1,408 | i 1,408 | |||||||||||
Manufacturing | i 5,936 | i 5,935 | i 6,345 | i 6,530 | |||||||||||
Healthcare | i 1,808 | i 1,809 | i 9,839 | i 1,399 | |||||||||||
SocialCode | i 83 | i 584 | i 104 | i 157 | |||||||||||
Other
businesses | i — | i — | i — | i — | |||||||||||
Corporate
office | i — | i — | i — | i — | |||||||||||
$ | i 10,384 | $ | i 11,399 | $ | i 20,378 | $ | i 13,362 | ||||||||
Pension
Service Cost | |||||||||||||||
Education | $ | i 2,664 | $ | i 1,878 | $ | i 2,107 | $ | i 2,104 | |||||||
Television
broadcasting | i 493 | i 601 | i 544 | i 550 | |||||||||||
Manufacturing | i 17 | i 19 | i 18 | i 18 | |||||||||||
Healthcare | i 122 | i 165 | i 143 | i 143 | |||||||||||
SocialCode | i 156 | i 205 | i 181 | i 181 | |||||||||||
Other
businesses | i 116 | i 154 | i 147 | i 161 | |||||||||||
Corporate
office | i 1,372 | i 1,295 | i 1,333 | i 1,334 | |||||||||||
$ | i 4,940 | $ | i 4,317 | $ | i 4,473 | $ | i 4,491 | ||||||||
Nine
months ended | Year Ended | ||||||||||||||
September 30 | December 31 | ||||||||||||||
(in thousands) | 2019 | 2018 | 2018 | 2017 | |||||||||||
Operating
Revenues | |||||||||||||||
Education | $ | i 1,097,536 | $ | i 1,104,105 | $ | i 1,451,015 | $ | i 1,516,776 | |||||||
Television
broadcasting | i 340,012 | i 352,902 | i 505,549 | i 409,916 | |||||||||||
Manufacturing | i 341,706 | i 369,896 | i 487,619 | i 414,193 | |||||||||||
Healthcare | i 119,057 | i 111,315 | i 149,275 | i 154,202 | |||||||||||
SocialCode | i 45,804 | i 41,850 | i 58,728 | i 62,077 | |||||||||||
Other
businesses | i 224,814 | i 26,856 | i 43,880 | i 34,733 | |||||||||||
Corporate
office | i — | i — | i — | i — | |||||||||||
Intersegment
elimination | ( i 308 | ) | ( i 45 | ) | ( i 100 | ) | ( i 51 | ) | |||||||
$ | i 2,168,621 | $ | i 2,006,879 | $ | i 2,695,966 | $ | i 2,591,846 | ||||||||
Income
(Loss) from Operations | |||||||||||||||
Education | $ | i 44,739 | $ | i 82,516 | $ | i 97,136 | $ | i 77,687 | |||||||
Television
broadcasting | i 116,847 | i 137,113 | i 210,533 | i 139,258 | |||||||||||
Manufacturing | i 14,811 | i 22,439 | i 28,851 | i 14,947 | |||||||||||
Healthcare | i 6,135 | ( i 9,329 | ) | ( i 8,401 | ) | ( i 2,569 | ) | ||||||||
SocialCode | ( i 5,371 | ) | ( i 399 | ) | ( i 1,081 | ) | ( i 3,674 | ) | |||||||
Other
businesses | ( i 23,435 | ) | ( i 22,176 | ) | ( i 28,016 | ) | ( i 30,536 | ) | |||||||
Corporate
office | ( i 39,492 | ) | ( i 39,585 | ) | ( i 52,861 | ) | ( i 58,710 | ) | |||||||
$ | i 114,234 | $ | i 170,579 | $ | i 246,161 | $ | i 136,403 | ||||||||
Equity
in Earnings (Losses) of Affiliates, Net | i 7,829 | i 13,047 | i 14,473 | ( i 3,249 | ) | ||||||||||
Interest
Expense, Net | ( i 17,834 | ) | ( i 27,487 | ) | ( i 32,549 | ) | ( i 27,305 | ) | |||||||
Debt
Extinguishment Costs | i — | ( i 11,378 | ) | ( i 11,378 | ) | i — | |||||||||
Non-Operating
Pension and Postretirement Benefit Income, Net | i 51,737 | i 66,641 | i 120,541 | i 72,699 | |||||||||||
Gain
(Loss) on Marketable Equity Securities, Net | i 49,261 | i 28,306 | ( i 15,843 | ) | i — | ||||||||||
Other
Income, Net | i 36,135 | i 14,662 | i 2,103 | i 4,241 | |||||||||||
Income
Before Income Taxes | $ | i 241,362 | $ | i 254,370 | $ | i 323,508 | $ | i 182,789 | |||||||
Depreciation
of Property, Plant and Equipment | |||||||||||||||
Education | $ | i 18,596 | $ | i 21,130 | $ | i 28,099 | $ | i 32,906 | |||||||
Television
broadcasting | i 9,839 | i 9,243 | i 13,204 | i 12,179 | |||||||||||
Manufacturing | i 7,488 | i 7,115 | i 9,515 | i 9,173 | |||||||||||
Healthcare | i 1,783 | i 1,948 | i 2,577 | i 4,583 | |||||||||||
SocialCode | i 892 | i 620 | i 797 | i 1,004 | |||||||||||
Other
businesses | i 3,459 | i 1,095 | i 1,523 | i 1,546 | |||||||||||
Corporate
office | i 701 | i 758 | i 1,007 | i 1,118 | |||||||||||
$ | i 42,758 | $ | i 41,909 | $ | i 56,722 | $ | i 62,509 | ||||||||
Amortization
of Intangible Assets and Impairment of Goodwill and Other Long-Lived Assets | |||||||||||||||
Education | $ | i 11,581 | $ | i 5,494 | $ | i 9,362 | $ | i 5,162 | |||||||
Television
broadcasting | i 4,224 | i 4,224 | i 5,632 | i 6,349 | |||||||||||
Manufacturing | i 19,580 | i 18,216 | i 24,746 | i 31,052 | |||||||||||
Healthcare | i 4,722 | i 13,456 | i 14,855 | i 7,905 | |||||||||||
SocialCode | i 470 | i 771 | i 928 | i 333 | |||||||||||
Other
businesses | i — | i — | i — | i — | |||||||||||
Corporate
office | i — | i — | i — | i — | |||||||||||
$ | i 40,577 | $ | i 42,161 | $ | i 55,523 | $ | i 50,801 | ||||||||
Pension
Service Cost | |||||||||||||||
Education | $ | i 7,789 | $ | i 6,649 | $ | i 8,753 | $ | i 9,720 | |||||||
Television
broadcasting | i 2,273 | i 1,638 | i 2,188 | i 1,942 | |||||||||||
Manufacturing | i 60 | i 54 | i 72 | i 79 | |||||||||||
Healthcare | i 369 | i 430 | i 573 | i 665 | |||||||||||
SocialCode | i 658 | i 542 | i 723 | i 593 | |||||||||||
Other
businesses | i 577 | i 417 | i 578 | i 453 | |||||||||||
Corporate
office | i 3,600 | i 4,000 | i 5,334 | i 5,235 | |||||||||||
$ | i 15,326 | $ | i 13,730 | $ | i 18,221 | $ | i 18,687 | ||||||||
Capital
Expenditures | |||||||||||||||
Education | $ | i 54,159 | $ | i 27,520 | |||||||||||
Television
broadcasting | i 27,013 | i 16,802 | |||||||||||||
Manufacturing | i 14,806 | i 8,012 | |||||||||||||
Healthcare | i 1,741 | i 2,987 | |||||||||||||
SocialCode | i 113 | i 756 | |||||||||||||
Other
businesses | i 235 | i 1,003 | |||||||||||||
Corporate
office | i — | i — | |||||||||||||
$ | i 98,067 | $ | i 57,080 | ||||||||||||
As of | |||||||
(in thousands) | |||||||
Identifiable
Assets | |||||||
Education | $ | i 1,925,819 | $ | i 1,568,747 | |||
Television
broadcasting | i 470,915 | i 452,853 | |||||
Manufacturing | i 577,244 | i 593,111 | |||||
Healthcare | i 132,068 | i 108,596 | |||||
SocialCode | i 238,253 | i 213,394 | |||||
Other
businesses | i 333,720 | i 20,608 | |||||
Corporate
office | i 71,501 | i 162,971 | |||||
$ | i 3,749,520 | $ | i 3,120,280 | ||||
Investments
in Marketable Equity Securities | i 535,564 | i 496,390 | |||||
Investments
in Affiliates | i 163,986 | i 143,813 | |||||
Prepaid
Pension Cost | i 1,038,676 | i 1,003,558 | |||||
Total
Assets | $ | i 5,487,746 | $ | i 4,764,041 | |||
Three Months Ended | Nine months ended | ||||||||||||||
September 30 | September
30 | ||||||||||||||
(in thousands) | 2019 | 2018 | 2019 | 2018 | |||||||||||
Operating Revenues | |||||||||||||||
Kaplan
international | $ | i 178,169 | $ | i 167,668 | $ | i 552,505 | $ | i 535,553 | |||||||
Higher
education | i 78,712 | i 89,269 | i 237,780 | i 275,080 | |||||||||||
Test
preparation | i 64,710 | i 67,749 | i 191,533 | i 195,504 | |||||||||||
Professional
(U.S.) | i 33,820 | i 34,302 | i 110,181 | i 98,715 | |||||||||||
Kaplan
corporate and other | i 2,450 | i 143 | i 7,121 | i 870 | |||||||||||
Intersegment
elimination | ( i 542 | ) | ( i 530 | ) | ( i 1,584 | ) | ( i 1,617 | ) | |||||||
$ | i 357,319 | $ | i 358,601 | $ | i 1,097,536 | $ | i 1,104,105 | ||||||||
Income
(Loss) from Operations | |||||||||||||||
Kaplan international | $ | ( i 14,226 | ) | $ | i 8,375 | $ | i 35,596 | $ | i 52,966 | ||||||
Higher
education | i 5,177 | i 6,042 | i 9,813 | i 18,616 | |||||||||||
Test
preparation | i 4,959 | i 10,572 | i 8,794 | i 17,213 | |||||||||||
Professional
(U.S.) | i 4,939 | i 6,768 | i 20,943 | i 20,863 | |||||||||||
Kaplan
corporate and other | ( i 8,011 | ) | ( i 9,452 | ) | ( i 30,405 | ) | ( i 27,110 | ) | |||||||
Intersegment
elimination | i 1 | ( i 43 | ) | ( i 2 | ) | ( i 32 | ) | ||||||||
$ | ( i 7,161 | ) | $ | i 22,262 | $ | i 44,739 | $ | i 82,516 | |||||||
Depreciation
of Property, Plant and Equipment | |||||||||||||||
Kaplan international | $ | i 3,600 | $ | i 3,759 | $ | i 11,198 | $ | i 11,497 | |||||||
Higher
education | i 840 | i 915 | i 2,066 | i 4,047 | |||||||||||
Test
preparation | i 774 | i 1,033 | i 2,358 | i 2,984 | |||||||||||
Professional
(U.S.) | i 978 | i 859 | i 2,802 | i 2,171 | |||||||||||
Kaplan
corporate and other | i 66 | i 119 | i 172 | i 431 | |||||||||||
$ | i 6,258 | $ | i 6,685 | $ | i 18,596 | $ | i 21,130 | ||||||||
Amortization
of Intangible Assets | $ | i 3,944 | $ | i 2,682 | $ | i 10,888 | $ | i 5,494 | |||||||
Impairment
of Long-lived Assets | $ | i — | $ | i — | $ | i 693 | $ | i — | |||||||
Pension
Service Cost | |||||||||||||||
Kaplan international | $ | i 114 | $ | i 66 | $ | i 341 | $ | i 233 | |||||||
Higher
education | i 1,136 | i 1,050 | i 3,401 | i 3,260 | |||||||||||
Test
preparation | i 847 | i 577 | i 2,534 | i 2,035 | |||||||||||
Professional
(U.S.) | i 340 | i 291 | i 1,017 | i 871 | |||||||||||
Kaplan
corporate and other | i 166 | i 123 | i 496 | i 250 | |||||||||||
$ | i 2,603 | $ | i 2,107 | $ | i 7,789 | $ | i 6,649 | ||||||||
As of | |||||||
(in thousands) | |||||||
Identifiable
assets | |||||||
Kaplan international | $ | i 1,336,238 | $ | i 1,101,040 | |||
Higher
education | i 202,553 | i 126,752 | |||||
Test
preparation | i 165,471 | i 145,308 | |||||
Professional
(U.S.) | i 154,568 | i 166,916 | |||||
Kaplan
corporate and other | i 66,989 | i 28,731 | |||||
$ | i 1,925,819 | $ | i 1,568,747 | ||||
• | a $20.4 million provision recorded at Kaplan International related to a Value Added Tax (VAT) receivable at UK Pathways (after-tax impact of $16.5 million, or $3.09
per share); |
• | a $1.1 million reduction to operating expenses from property, plant and equipment gains in connection with the spectrum repacking mandate of the FCC (after-tax impact of $0.9 million, or $0.16 per share); |
• | $17.4 million in net gains on marketable equity securities (after-tax impact of $13.1 million,
or $2.44 per share); |
• | non-operating gain of $3.7 million from write-ups of cost method investments (after-tax impact of $2.8 million or $0.51 per share); and |
• | $0.7 million in non-operating foreign currency gains (after-tax impact of $0.5 million,
or $0.09 per share). |
• | a $7.9 million intangible asset impairment charge at the healthcare business (after-tax impact of $5.8 million, or $1.08 per share); |
• | a
$1.0 million reduction to operating expenses from property, plant and equipment gains in connection with the spectrum repacking mandate of the FCC (after-tax impact of $0.8 million, or $0.14 per share); |
• | $45.0 million in net gains on marketable equity securities (after-tax impact of $33.6 million, or $6.26 per share); |
• | non-operating
gain, net, of $10.1 million from sales, write-ups and impairments of cost method and equity method investments, and related to sales of businesses (after-tax impact of $8.0 million, or $1.48 per share); |
• | $0.1 million in non-operating foreign currency losses (after-tax impact of $0.1 million, or $0.02 per share); and |
• | a
nonrecurring discrete $17.8 million deferred state tax benefit related to the release of valuation allowances ($3.31 per share). |
• | a $17.1 million provision recorded at Kaplan International related to a VAT receivable at UK Pathways (after-tax impact of $13.9 million, or $2.59 per share); |
• | a $10.7 million reduction to operating expenses from property, plant and equipment gains in connection with the spectrum repacking mandate of the FCC (after-tax impact of
$8.3 million, or $1.55 per share); |
• | $6.6 million in expenses related to a second quarter non-operating Separation Incentive Program (SIP) at the education division (after-tax impact of $5.1 million, or $0.95 per share); |
• | $49.3 million in net gains on marketable equity
securities (after-tax impact of $36.9 million, or $6.90 per share); |
• | non-operating gain of $5.1 million from write-ups of cost method investments (after-tax impact of $3.9 million or $0.73 per share); |
• | $29.0 million gain
from the sale of Gimlet Media (after-tax impact of $21.7 million, or $4.06 per share); |
• | $1.3 million in non-operating foreign currency gains (after-tax impact of $1.0 million, or $0.18 per share); and |
• | $1.7 million in income tax benefits related
to stock compensation ($0.32 per share). |
• | a $7.9 million intangible asset impairment charge at the healthcare business (after-tax impact of $5.8 million, or $1.08 per share); |
• | a
$2.1 million reduction to operating expenses from property, plant and equipment gains in connection with the spectrum repacking mandate of the FCC (after-tax impact of $1.6 million, or $0.29 per share); |
• | $6.2 million in interest expense related to the settlement of a mandatorily redeemable noncontrolling interest ($1.14 per share); |
• | $11.4
million in debt extinguishment costs (after-tax impact of $8.6 million, or $1.60 per share); |
• | $28.3 million in net losses on marketable equity securities (after-tax impact of $20.9 million, or $3.86 per share); |
• | non-operating gain, net, of $17.0
million from sales, write-ups and impairments of cost method and equity method investments, and related to sales of land and businesses (after-tax impact of $13.4 million, or $2.46 per share); |
• | a $4.3 million gain on the Kaplan University Transaction (after-tax impact of $1.8 million, or $0.33 per share); |
• | $2.2
million in non-operating foreign currency losses (after-tax impact of $1.7 million, or $0.31 per share); |
• | a nonrecurring discrete $17.8 million deferred state tax benefit related to the release of valuation allowances ($3.31 per share); and |
• | $1.8 million
in income tax benefits related to stock compensation ($0.33 per share). |
Three Months Ended | Nine
Months Ended | ||||||||||||||||||||
September 30 | September 30 | ||||||||||||||||||||
(in thousands) | 2019 | 2018 | %
Change | 2019 | 2018 | % Change | |||||||||||||||
Revenue | |||||||||||||||||||||
Kaplan
international | $ | 178,169 | $ | 167,668 | 6 | $ | 552,505 | $ | 535,553 | 3 | |||||||||||
Higher
education | 78,712 | 89,269 | (12 | ) | 237,780 | 275,080 | (14 | ) | |||||||||||||
Test
preparation | 64,710 | 67,749 | (4 | ) | 191,533 | 195,504 | (2 | ) | |||||||||||||
Professional
(U.S.) | 33,820 | 34,302 | (1 | ) | 110,181 | 98,715 | 12 | ||||||||||||||
Kaplan
corporate and other | 2,450 | 143 | — | 7,121 | 870 | — | |||||||||||||||
Intersegment
elimination | (542 | ) | (530 | ) | — | (1,584 | ) | (1,617 | ) | — | |||||||||||
$ | 357,319 | $ | 358,601 | 0 | $ | 1,097,536 | $ | 1,104,105 | (1 | ) | |||||||||||
Operating
Income (Loss) | |||||||||||||||||||||
Kaplan
international | $ | (14,226 | ) | $ | 8,375 | — | $ | 35,596 | $ | 52,966 | (33 | ) | |||||||||
Higher
education | 5,177 | 6,042 | (14 | ) | 9,813 | 18,616 | (47 | ) | |||||||||||||
Test
preparation | 4,959 | 10,572 | (53 | ) | 8,794 | 17,213 | (49 | ) | |||||||||||||
Professional
(U.S.) | 4,939 | 6,768 | (27 | ) | 20,943 | 20,863 | 0 | ||||||||||||||
Kaplan
corporate and other | (4,067 | ) | (6,770 | ) | 40 | (18,824 | ) | (21,616 | ) | 13 | |||||||||||
Amortization
of intangible assets | (3,944 | ) | (2,682 | ) | (47 | ) | (10,888 | ) | (5,494 | ) | (98 | ) | |||||||||
Impairment
of long-lived assets | — | — | — | (693 | ) | — | — | ||||||||||||||
Intersegment
elimination | 1 | (43 | ) | — | (2 | ) | (32 | ) | — | ||||||||||||
$ | (7,161 | ) | $ | 22,262 | — | $ | 44,739 | $ | 82,516 | (46 | ) | ||||||||||
Three
Months Ended | Nine Months Ended | ||||||||||||||||||||
September 30 | September 30 | ||||||||||||||||||||
(in
thousands) | 2019 | 2018 | % Change | 2019 | 2018 | % Change | |||||||||||||||
Revenue | $ | 115,161 | $ | 130,014 | (11 | ) | $ | 340,012 | $ | 352,902 | (4 | ) | |||||||||
Operating
Income | 36,813 | 55,453 | (34 | ) | 116,847 | 137,113 | (15 | ) | |||||||||||||
Three
Months Ended | Nine Months Ended | ||||||||||||||||||||
September 30 | September 30 | ||||||||||||||||||||
(in
thousands) | 2019 | 2018 | % Change | 2019 | 2018 | % Change | |||||||||||||||
Revenue | $ | 111,676 | $ | 126,028 | (11 | ) | $ | 341,706 | $ | 369,896 | (8 | ) | |||||||||
Operating
Income | 6,845 | 5,146 | 33 | 14,811 | 22,439 | (34 | ) | ||||||||||||||
Three
Months Ended | Nine Months Ended | ||||||||||||||||||
September 30 | September 30 | ||||||||||||||||||
(in
thousands) | 2019 | 2018 | % Change | 2019 | 2018 | % Change | |||||||||||||
Revenue | $ | 40,688 | $ | 35,486 | 15 | $ | 119,057 | $ | 111,315 | 7 | |||||||||
Operating
Income (Loss) | 1,208 | (8,702 | ) | — | 6,135 | (9,329 | ) | — | |||||||||||
Three Months Ended | Nine
Months Ended | ||||||||||||||||||
September 30 | September 30 | ||||||||||||||||||
(in thousands) | 2019 | 2018 | %
Change | 2019 | 2018 | % Change | |||||||||||||
Revenue | $ | 15,975 | $ | 13,781 | 16 | $ | 45,804 | $ | 41,850 | 9 | |||||||||
Operating
Income (Loss) | (378 | ) | 5,124 | — | (5,371 | ) | (399 | ) | — | ||||||||||
Moody’s | Standard & Poor’s | ||
Long-term | Ba1 | BB+ | |
• | Regulatory
Changes and Developments Could Negatively Impact Kaplan’s Results of Operations. |
• | Compliance Reviews, Program Review, Audits and Investigations Could Result in Findings of Non-Compliance With Statutory and Regulatory Requirements and Result in Liabilities, Sanctions and Fines. |
• | Changes in U.K. Tax Laws Could Have a Material Adverse Effect on KI. |
Exhibit Number | Description |
3.1 | |
3.2 | |
3.3 | |
4.1 | |
4.2 | |
10.1 | |
31.1 | |
31.2 | |
32 | |
101.INS | Inline XBRL Instance Document - the instance document does not appear in the Interactive Data File
because its XBRL tags are embedded within the Inline XBRL document |
101.SCH | Inline XBRL Taxonomy Extension Schema Document |
101.CAL | Inline XBRL Taxonomy Extension Calculation Linkbase Document |
101.DEF | Inline
XBRL Taxonomy Extension Definition Linkbase Document |
101.LAB | Inline XBRL Taxonomy Extension Label Linkbase Document |
101.PRE | Inline XBRL Taxonomy Extension Presentation Linkbase Document |
* | Furnished
herewith. |
+ | Select portions of this exhibit have been omitted as permitted by SEC rules regarding confidential information. |
GRAHAM HOLDINGS COMPANY | ||
(Registrant) | ||
Date:
October 30, 2019 | ||
President & Chief Executive Officer (Principal Executive Officer) | ||
Date:
October 30, 2019 | ||
Chief Financial Officer (Principal Financial Officer) | ||
| This ‘10-Q’ Filing | Date | Other Filings | ||
|---|---|---|---|---|
 | ||||
| 1/31/29 | ||||
| 6/1/26 | ||||
| 5/30/23 | ||||
| 12/31/22 | ||||
| 6/30/22 | ||||
| 7/1/20 | ||||
| 1/1/20 | ||||
| Filed on: | 10/30/19 | 8-K | ||
| 10/25/19 | ||||
| 10/1/19 | ||||
| For Period end: | 9/30/19 | |||
| 8/30/19 | ||||
| 7/31/19 | 10-Q, 8-K | |||
| 7/11/19 | ||||
| 7/1/19 | ||||
| 6/30/19 | 10-Q | |||
| 4/7/19 | ||||
| 3/31/19 | 10-Q | |||
| 2/1/19 | ||||
| 1/31/19 | ||||
| 1/1/19 | ||||
| 12/31/18 | 10-K, SD | |||
| 12/15/18 | ||||
| 12/1/18 | ||||
| 9/30/18 | 10-Q | |||
| 7/31/18 | ||||
| 7/12/18 | ||||
| 6/30/18 | 10-Q | |||
| 6/29/18 | ||||
| 5/30/18 | 8-K | |||
| 5/21/18 | 8-K | |||
| 3/31/18 | 10-Q | |||
| 3/22/18 | 8-K, DEF 14A | |||
| 12/31/17 | 10-K, SD | |||
| 11/9/17 | 8-K | |||
| 7/1/17 | ||||
| 9/3/15 | 8-K | |||
| 6/29/15 | 4, 8-K | |||
| List all Filings | ||||
As Of Filer Filing For·On·As Docs:Size Issuer Filing Agent 2/23/24 Graham Holdings Co. 10-K 12/31/23 139:23M 2/24/23 Graham Holdings Co. 10-K 12/31/22 133:24M 2/25/22 Graham Holdings Co. 10-K 12/31/21 132:24M 2/24/21 Graham Holdings Co. 10-K 12/31/20 131:24M |