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Share Name | Share Symbol | Market | Type |
---|---|---|---|
Graham Holdings Company | NYSE:GHC | NYSE | Common Stock |
Price Change | % Change | Share Price | High Price | Low Price | Open Price | Shares Traded | Last Trade | |
---|---|---|---|---|---|---|---|---|
6.87 | 0.95% | 732.68 | 737.02 | 730.22 | 737.02 | 11,737 | 01:00:00 |
|
|
☒
|
Quarterly Report Pursuant to Section 13 or 15(d) of the Securities Exchange Act of 1934
|
☐
|
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)
|
Delaware
|
|
53-0182885
|
||||
(State or other jurisdiction of
incorporation or organization)
|
|
(I.R.S. Employer
Identification No.)
|
||||
|
|
|
|
|
|
|
1300 North 17th Street
|
,
|
Arlington
|
,
|
Virginia
|
|
22209
|
(Address of principal executive offices)
|
|
(Zip Code)
|
Title of each class
|
|
Trading Symbol(s)
|
|
Name of each exchange on which registered
|
Class B Common Stock, par value $1.00 per share
|
|
GHC
|
|
New York Stock Exchange
|
Large Accelerated Filer
|
☒
|
Accelerated
filer
|
☐
|
Non-accelerated
filer
|
☐
|
Smaller reporting
company
|
☐
|
Emerging growth
company
|
☐
|
|
|
Three Months Ended
June 30 |
|
Six Months Ended
June 30 |
||||||||||||
|
|
||||||||||||||
(in thousands, except per share amounts)
|
2019
|
|
2018
|
|
2019
|
|
2018
|
||||||||
Operating Revenues
|
$
|
737,602
|
|
|
$
|
672,677
|
|
|
$
|
1,429,801
|
|
|
$
|
1,332,113
|
|
Operating Costs and Expenses
|
|
|
|
|
|
|
|
||||||||
Operating
|
503,763
|
|
|
440,655
|
|
|
980,993
|
|
|
805,806
|
|
||||
Selling, general and administrative
|
148,419
|
|
|
141,378
|
|
|
296,802
|
|
|
366,423
|
|
||||
Depreciation of property, plant and equipment
|
13,884
|
|
|
13,619
|
|
|
27,407
|
|
|
28,261
|
|
||||
Amortization of intangible assets
|
12,880
|
|
|
11,399
|
|
|
25,940
|
|
|
21,783
|
|
||||
Impairment of long-lived assets
|
693
|
|
|
—
|
|
|
693
|
|
|
—
|
|
||||
|
679,639
|
|
|
607,051
|
|
|
1,331,835
|
|
|
1,222,273
|
|
||||
Income from Operations
|
57,963
|
|
|
65,626
|
|
|
97,966
|
|
|
109,840
|
|
||||
Equity in earnings of affiliates, net
|
1,467
|
|
|
931
|
|
|
3,146
|
|
|
3,510
|
|
||||
Interest income
|
1,579
|
|
|
1,901
|
|
|
3,279
|
|
|
3,273
|
|
||||
Interest expense
|
(8,386
|
)
|
|
(17,165
|
)
|
|
(15,811
|
)
|
|
(25,236
|
)
|
||||
Debt extinguishment costs
|
—
|
|
|
(11,378
|
)
|
|
—
|
|
|
(11,378
|
)
|
||||
Non-operating pension and postretirement benefit income, net
|
12,253
|
|
|
23,041
|
|
|
32,181
|
|
|
44,427
|
|
||||
Gain (loss) on marketable equity securities, net
|
7,791
|
|
|
(2,554
|
)
|
|
31,857
|
|
|
(16,656
|
)
|
||||
Other income, net
|
1,228
|
|
|
2,333
|
|
|
30,579
|
|
|
11,520
|
|
||||
Income Before Income Taxes
|
73,895
|
|
|
62,735
|
|
|
183,197
|
|
|
119,300
|
|
||||
Provision for Income Taxes
|
16,700
|
|
|
16,100
|
|
|
44,300
|
|
|
29,700
|
|
||||
Net Income
|
57,195
|
|
|
46,635
|
|
|
138,897
|
|
|
89,600
|
|
||||
Net Income Attributable to Noncontrolling Interests
|
(114
|
)
|
|
(69
|
)
|
|
(68
|
)
|
|
(143
|
)
|
||||
Net Income Attributable to Graham Holdings Company Common Stockholders
|
$
|
57,081
|
|
|
$
|
46,566
|
|
|
$
|
138,829
|
|
|
$
|
89,457
|
|
Per Share Information Attributable to Graham Holdings Company Common Stockholders
|
|
|
|
|
|
|
|
|
|
|
|
||||
Basic net income per common share
|
$
|
10.74
|
|
|
$
|
8.69
|
|
|
$
|
26.12
|
|
|
$
|
16.52
|
|
Basic average number of common shares outstanding
|
5,285
|
|
|
5,325
|
|
|
5,285
|
|
|
5,380
|
|
||||
Diluted net income per common share
|
$
|
10.65
|
|
|
$
|
8.63
|
|
|
$
|
25.91
|
|
|
$
|
16.40
|
|
Diluted average number of common shares outstanding
|
5,329
|
|
|
5,362
|
|
|
5,328
|
|
|
5,417
|
|
|
Three Months Ended
June 30 |
|
Six Months Ended
June 30 |
||||||||||||
(in thousands)
|
2019
|
|
2018
|
|
2019
|
|
2018
|
||||||||
Net Income
|
$
|
57,195
|
|
|
$
|
46,635
|
|
|
$
|
138,897
|
|
|
$
|
89,600
|
|
Other Comprehensive Loss, Before Tax
|
|
|
|
|
|
|
|
||||||||
Foreign currency translation adjustments:
|
|
|
|
|
|
|
|
||||||||
Translation adjustments arising during the period
|
(11,104
|
)
|
|
(31,167
|
)
|
|
(1,071
|
)
|
|
(19,603
|
)
|
||||
Pension and other postretirement plans:
|
|
|
|
|
|
|
|
||||||||
Amortization of net prior service (credit) cost included in net income
|
(931
|
)
|
|
70
|
|
|
(2,278
|
)
|
|
146
|
|
||||
Amortization of net actuarial gain included in net income
|
(475
|
)
|
|
(3,294
|
)
|
|
(1,023
|
)
|
|
(4,661
|
)
|
||||
|
(1,406
|
)
|
|
(3,224
|
)
|
|
(3,301
|
)
|
|
(4,515
|
)
|
||||
Cash flow hedges gain (loss)
|
40
|
|
|
371
|
|
|
(427
|
)
|
|
607
|
|
||||
Other Comprehensive Loss, Before Tax
|
(12,470
|
)
|
|
(34,020
|
)
|
|
(4,799
|
)
|
|
(23,511
|
)
|
||||
Income tax benefit related to items of other comprehensive loss
|
375
|
|
|
799
|
|
|
994
|
|
|
1,102
|
|
||||
Other Comprehensive Loss, Net of Tax
|
(12,095
|
)
|
|
(33,221
|
)
|
|
(3,805
|
)
|
|
(22,409
|
)
|
||||
Comprehensive Income
|
45,100
|
|
|
13,414
|
|
|
135,092
|
|
|
67,191
|
|
||||
Comprehensive income attributable to noncontrolling interests
|
(114
|
)
|
|
(69
|
)
|
|
(68
|
)
|
|
(143
|
)
|
||||
Total Comprehensive Income Attributable to Graham Holdings Company
|
$
|
44,986
|
|
|
$
|
13,345
|
|
|
$
|
135,024
|
|
|
$
|
67,048
|
|
|
As of
|
||||||
(in thousands)
|
June 30,
2019 |
|
December 31,
2018 |
||||
|
(Unaudited)
|
|
|
||||
Assets
|
|
|
|
||||
Current Assets
|
|
|
|
||||
Cash and cash equivalents
|
$
|
171,969
|
|
|
$
|
253,256
|
|
Restricted cash
|
15,665
|
|
|
10,859
|
|
||
Investments in marketable equity securities and other investments
|
536,875
|
|
|
514,581
|
|
||
Accounts receivable, net
|
535,108
|
|
|
582,280
|
|
||
Income taxes receivable
|
16,490
|
|
|
19,166
|
|
||
Inventories and contracts in progress
|
120,415
|
|
|
69,477
|
|
||
Other current assets
|
88,748
|
|
|
82,723
|
|
||
Total Current Assets
|
1,485,270
|
|
|
1,532,342
|
|
||
Property, Plant and Equipment, Net
|
327,084
|
|
|
293,085
|
|
||
Lease Right-of-Use Assets
|
361,603
|
|
|
—
|
|
||
Investments in Affiliates
|
159,660
|
|
|
143,813
|
|
||
Goodwill, Net
|
1,335,961
|
|
|
1,297,712
|
|
||
Indefinite-Lived Intangible Assets
|
126,986
|
|
|
99,052
|
|
||
Amortized Intangible Assets, Net
|
237,675
|
|
|
263,261
|
|
||
Prepaid Pension Cost
|
1,024,555
|
|
|
1,003,558
|
|
||
Deferred Income Taxes
|
12,010
|
|
|
13,388
|
|
||
Deferred Charges and Other Assets
|
142,146
|
|
|
117,830
|
|
||
Total Assets
|
$
|
5,212,950
|
|
|
$
|
4,764,041
|
|
|
|
|
|
||||
Liabilities and Equity
|
|
|
|
|
|
||
Current Liabilities
|
|
|
|
|
|
||
Accounts payable and accrued liabilities
|
$
|
461,051
|
|
|
$
|
486,578
|
|
Deferred revenue
|
241,473
|
|
|
308,728
|
|
||
Income taxes payable
|
14,673
|
|
|
10,496
|
|
||
Current portion of lease liabilities
|
80,628
|
|
|
—
|
|
||
Current portion of long-term debt
|
9,351
|
|
|
6,360
|
|
||
Dividends declared
|
7,388
|
|
|
—
|
|
||
Total Current Liabilities
|
814,564
|
|
|
812,162
|
|
||
Accrued Compensation and Related Benefits
|
178,460
|
|
|
179,652
|
|
||
Other Liabilities
|
22,907
|
|
|
57,901
|
|
||
Deferred Income Taxes
|
333,729
|
|
|
322,421
|
|
||
Lease Liabilities
|
323,466
|
|
|
—
|
|
||
Long-Term Debt
|
497,094
|
|
|
470,777
|
|
||
Total Liabilities
|
2,170,220
|
|
|
1,842,913
|
|
||
Redeemable Noncontrolling Interest
|
3,876
|
|
|
4,346
|
|
||
Preferred Stock
|
—
|
|
|
—
|
|
||
Common Stockholders’ Equity
|
|
|
|
|
|
||
Common stock
|
20,000
|
|
|
20,000
|
|
||
Capital in excess of par value
|
378,255
|
|
|
378,837
|
|
||
Retained earnings
|
6,352,787
|
|
|
6,236,125
|
|
||
Accumulated other comprehensive income, net of tax
|
|
|
|
|
|||
Cumulative foreign currency translation adjustment
|
(30,341
|
)
|
|
(29,270
|
)
|
||
Unrealized gain on pensions and other postretirement plans
|
230,426
|
|
|
232,836
|
|
||
Cash flow hedges
|
(61
|
)
|
|
263
|
|
||
Cost of Class B common stock held in treasury
|
(3,918,254
|
)
|
|
(3,922,009
|
)
|
||
Total Common Stockholders’ Equity
|
3,032,812
|
|
|
2,916,782
|
|
||
Noncontrolling Interest
|
6,042
|
|
|
—
|
|
||
Total Equity
|
3,038,854
|
|
|
2,916,782
|
|
||
Total Liabilities and Equity
|
$
|
5,212,950
|
|
|
$
|
4,764,041
|
|
|
Six Months Ended
June 30 |
||||||
(in thousands)
|
2019
|
|
2018
|
||||
Cash Flows from Operating Activities
|
|
|
|
||||
Net Income
|
$
|
138,897
|
|
|
$
|
89,600
|
|
Adjustments to reconcile net income to net cash (used in) provided by operating activities:
|
|
|
|
||||
Depreciation, amortization and impairment of long-lived assets
|
54,040
|
|
|
50,044
|
|
||
Amortization of lease right-of-use asset
|
40,871
|
|
|
—
|
|
||
Net pension benefit and special separation benefit expense
|
(19,763
|
)
|
|
(36,868
|
)
|
||
(Gain) loss on marketable equity securities and cost method investments, net
|
(33,268
|
)
|
|
16,656
|
|
||
Gain on disposition of businesses, property, plant and equipment and investments, net
|
(28,981
|
)
|
|
(12,598
|
)
|
||
Debt extinguishment costs
|
—
|
|
|
10,563
|
|
||
Stock-based compensation expense, net
|
3,227
|
|
|
3,262
|
|
||
Foreign exchange (gain) loss
|
(623
|
)
|
|
2,089
|
|
||
Equity in earnings of affiliates, net of distributions
|
(396
|
)
|
|
(2,945
|
)
|
||
Provision (benefit) for deferred income taxes
|
13,481
|
|
|
(4,140
|
)
|
||
Change in operating assets and liabilities:
|
|
|
|
||||
Accounts receivable, net
|
27,181
|
|
|
79,007
|
|
||
Inventories
|
(21,878
|
)
|
|
(14,109
|
)
|
||
Accounts payable and accrued liabilities
|
(56,125
|
)
|
|
(72,017
|
)
|
||
Deferred revenue
|
(66,542
|
)
|
|
(46,193
|
)
|
||
Income taxes receivable
|
6,778
|
|
|
26,323
|
|
||
Other assets and other liabilities, net
|
(74,251
|
)
|
|
(19,871
|
)
|
||
Other
|
677
|
|
|
1,735
|
|
||
Net Cash (Used in) Provided by Operating Activities
|
(16,675
|
)
|
|
70,538
|
|
||
Cash Flows from Investing Activities
|
|
|
|
||||
Investments in certain businesses, net of cash acquired
|
(84,071
|
)
|
|
(24,717
|
)
|
||
Net proceeds (payments) from disposition of businesses, property, plant and equipment and investments
|
53,414
|
|
|
(13,332
|
)
|
||
Purchases of property, plant and equipment
|
(52,703
|
)
|
|
(40,506
|
)
|
||
Investments in equity affiliates, cost method and other investments
|
(24,342
|
)
|
|
(6,310
|
)
|
||
Proceeds from sales of marketable equity securities
|
17,162
|
|
|
66,741
|
|
||
Purchases of marketable equity securities
|
(7,499
|
)
|
|
—
|
|
||
Loan to related party and advance related to Kaplan University transaction
|
(3,500
|
)
|
|
(28,061
|
)
|
||
Return of investment in equity affiliates
|
638
|
|
|
2,056
|
|
||
Net Cash Used in Investing Activities
|
(100,901
|
)
|
|
(44,129
|
)
|
||
Cash Flows from Financing Activities
|
|
|
|
||||
Common shares repurchased
|
—
|
|
|
(94,092
|
)
|
||
Issuance of borrowings
|
30,000
|
|
|
400,000
|
|
||
Net proceeds from vehicle floor plan payable
|
24,618
|
|
|
—
|
|
||
Dividends paid
|
(14,779
|
)
|
|
(14,453
|
)
|
||
Issuance of noncontrolling interest
|
6,000
|
|
|
—
|
|
||
Repayments of borrowings and early redemption premium
|
(1,006
|
)
|
|
(410,569
|
)
|
||
Payments of debt financing costs
|
(33
|
)
|
|
(6,924
|
)
|
||
Other
|
(4,483
|
)
|
|
(844
|
)
|
||
Net Cash Provided by (Used in) Financing Activities
|
40,317
|
|
|
(126,882
|
)
|
||
Effect of Currency Exchange Rate Change
|
778
|
|
|
(4,352
|
)
|
||
Net Decrease in Cash and Cash Equivalents and Restricted Cash
|
(76,481
|
)
|
|
(104,825
|
)
|
||
Beginning Cash and Cash Equivalents and Restricted Cash
|
264,115
|
|
|
407,566
|
|
||
Ending Cash and Cash Equivalents and Restricted Cash
|
$
|
187,634
|
|
|
$
|
302,741
|
|
(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
|
$
|
20,000
|
|
$
|
378,837
|
|
$
|
6,236,125
|
|
$
|
203,829
|
|
$
|
(3,922,009
|
)
|
$
|
—
|
|
$
|
2,916,782
|
|
|
$
|
4,346
|
|
Net income for the period
|
|
|
81,702
|
|
|
|
|
81,702
|
|
|
|
||||||||||||||
Issuance of noncontrolling interest
|
|
|
|
|
|
6,000
|
|
6,000
|
|
|
|
||||||||||||||
Net loss attributable to noncontrolling interest
|
|
|
62
|
|
|
|
(62
|
)
|
—
|
|
|
|
|||||||||||||
Net income attributable to redeemable noncontrolling interests
|
|
|
(16
|
)
|
|
|
|
(16
|
)
|
|
16
|
|
|||||||||||||
Change in redemption value of redeemable noncontrolling interests
|
|
(54
|
)
|
|
|
|
|
(54
|
)
|
|
54
|
|
|||||||||||||
Dividends on common stock
|
|
|
(14,779
|
)
|
|
|
|
(14,779
|
)
|
|
|
||||||||||||||
Issuance of Class B common stock, net of restricted stock award forfeitures
|
|
(3,783
|
)
|
|
|
3,755
|
|
|
(28
|
)
|
|
|
|||||||||||||
Amortization of unearned stock compensation and stock option expense
|
|
1,639
|
|
|
|
|
|
1,639
|
|
|
|
||||||||||||||
Other comprehensive income, net of income taxes
|
|
|
|
8,290
|
|
|
|
8,290
|
|
|
|
||||||||||||||
Purchase of redeemable noncontrolling interest
|
|
|
|
|
|
|
—
|
|
|
(550
|
)
|
||||||||||||||
As of March 31, 2019
|
$
|
20,000
|
|
$
|
376,639
|
|
$
|
6,303,094
|
|
$
|
212,119
|
|
$
|
(3,918,254
|
)
|
$
|
5,938
|
|
$
|
2,999,536
|
|
|
$
|
3,866
|
|
Net income for the period
|
|
|
57,195
|
|
|
|
|
57,195
|
|
|
|
||||||||||||||
Net income attributable to noncontrolling interest
|
|
|
(104
|
)
|
|
|
104
|
|
—
|
|
|
|
|||||||||||||
Net income attributable to redeemable noncontrolling interests
|
|
|
(10
|
)
|
|
|
|
(10
|
)
|
|
10
|
|
|||||||||||||
Dividends on common stock
|
|
|
(7,388
|
)
|
|
|
|
(7,388
|
)
|
|
|
||||||||||||||
Amortization of unearned stock compensation and stock option expense
|
|
1,616
|
|
|
|
|
|
1,616
|
|
|
|
||||||||||||||
Other comprehensive loss, net of income taxes
|
|
|
|
(12,095
|
)
|
|
|
(12,095
|
)
|
|
|
||||||||||||||
As of June 30, 2019
|
$
|
20,000
|
|
$
|
378,255
|
|
$
|
6,352,787
|
|
$
|
200,024
|
|
$
|
(3,918,254
|
)
|
$
|
6,042
|
|
$
|
3,038,854
|
|
|
$
|
3,876
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||||||
As of December 31, 2017
|
$
|
20,000
|
|
$
|
370,700
|
|
$
|
5,791,724
|
|
$
|
535,555
|
|
$
|
(3,802,834
|
)
|
$
|
—
|
|
$
|
2,915,145
|
|
|
$
|
4,607
|
|
Net income for the period
|
|
|
42,965
|
|
|
|
|
42,965
|
|
|
|
||||||||||||||
Net income attributable to redeemable noncontrolling interests
|
|
|
(73
|
)
|
|
|
|
(73
|
)
|
|
73
|
|
|||||||||||||
Dividends on common stock
|
|
|
(14,638
|
)
|
|
|
|
(14,638
|
)
|
|
|
||||||||||||||
Repurchase of Class B common stock
|
|
|
|
|
(79,001
|
)
|
|
(79,001
|
)
|
|
|
||||||||||||||
Issuance of Class B common stock, net of restricted stock award forfeitures
|
|
(189
|
)
|
|
|
119
|
|
|
(70
|
)
|
|
|
|||||||||||||
Amortization of unearned stock compensation and stock option expense
|
|
2,325
|
|
|
|
|
|
2,325
|
|
|
|
||||||||||||||
Other comprehensive income, net of income taxes
|
|
|
|
10,812
|
|
|
|
10,812
|
|
|
|
||||||||||||||
Cumulative effect of accounting change
|
|
|
201,812
|
|
(194,889
|
)
|
|
|
6,923
|
|
|
|
|||||||||||||
As of March 31, 2018
|
$
|
20,000
|
|
$
|
372,836
|
|
$
|
6,021,790
|
|
$
|
351,478
|
|
$
|
(3,881,716
|
)
|
$
|
—
|
|
$
|
2,884,388
|
|
|
$
|
4,680
|
|
Net income for the period
|
|
|
46,635
|
|
|
|
|
46,635
|
|
|
|
||||||||||||||
Net income attributable to redeemable noncontrolling interests
|
|
|
(70
|
)
|
|
|
|
(70
|
)
|
|
70
|
|
|||||||||||||
Dividends on common stock
|
|
|
(6,949
|
)
|
|
|
|
(6,949
|
)
|
|
|
||||||||||||||
Repurchase of Class B common stock
|
|
|
|
|
(15,091
|
)
|
|
(15,091
|
)
|
|
|
||||||||||||||
Issuance of Class B common stock, net of restricted stock award forfeitures
|
|
(496
|
)
|
|
|
(494
|
)
|
|
(990
|
)
|
|
|
|||||||||||||
Amortization of unearned stock compensation and stock option expense
|
|
2,162
|
|
|
|
|
|
2,162
|
|
|
|
||||||||||||||
Other comprehensive loss, net of income taxes
|
|
|
|
(33,221
|
)
|
|
|
(33,221
|
)
|
|
|
||||||||||||||
As of June 30, 2018
|
$
|
20,000
|
|
$
|
374,502
|
|
$
|
6,061,406
|
|
$
|
318,257
|
|
$
|
(3,897,301
|
)
|
$
|
—
|
|
$
|
2,876,864
|
|
|
$
|
4,750
|
|
|
Balance as of December 31, 2018
|
Adjustments
|
Balance as of January 1, 2019
|
||||||
Assets
|
|
|
|
||||||
Other current assets
|
$
|
82,723
|
|
$
|
(5,595
|
)
|
$
|
77,128
|
|
Lease Right-of-Use Assets
|
—
|
|
369,333
|
|
369,333
|
|
|||
Liabilities
|
|
|
|
||||||
Accounts payable and accrued liabilities
|
$
|
486,578
|
|
$
|
(14,029
|
)
|
$
|
472,549
|
|
Current portion of lease liabilities
|
—
|
|
86,747
|
|
86,747
|
|
|||
Other Liabilities
|
57,901
|
|
(40,500
|
)
|
17,401
|
|
|||
Lease Liabilities
|
—
|
|
331,520
|
|
331,520
|
|
|
|
Purchase Price Allocation
|
||
|
|
Year Ended
|
||
(in thousands)
|
|
December 31, 2018
|
||
Accounts receivable
|
|
$
|
2,344
|
|
Inventory
|
|
1,268
|
|
|
Property, plant and equipment
|
|
1,518
|
|
|
Goodwill
|
|
41,840
|
|
|
Amortized intangible assets
|
|
78,427
|
|
|
Other assets
|
|
5,198
|
|
|
Other liabilities
|
|
(7,678
|
)
|
|
Deferred income taxes
|
|
(4,900
|
)
|
|
Aggregate purchase price, net of cash acquired
|
|
$
|
118,017
|
|
|
Three Months Ended
June 30 |
|
Six Months Ended
June 30 |
||||||||||||
(in thousands)
|
2019
|
|
2018
|
|
2019
|
|
2018
|
||||||||
Operating revenues
|
$
|
737,602
|
|
|
$
|
748,958
|
|
|
$
|
1,442,995
|
|
|
$
|
1,477,590
|
|
Net income
|
57,195
|
|
|
46,694
|
|
|
139,321
|
|
|
91,796
|
|
(in thousands)
|
Three Months Ended June 30, 2018
|
|
Six Months Ended June 30, 2018
|
||||
Revenue
|
$
|
—
|
|
|
$
|
91,526
|
|
Operating income
|
—
|
|
|
213
|
|
|
As of
|
||||||
|
June 30,
2019 |
|
December 31,
2018 |
||||
(in thousands)
|
|
||||||
Total cost
|
$
|
282,349
|
|
|
$
|
282,563
|
|
Gross unrealized gains
|
235,885
|
|
|
216,111
|
|
||
Gross unrealized losses
|
(135
|
)
|
|
(2,284
|
)
|
||
Total Fair Value
|
$
|
518,099
|
|
|
$
|
496,390
|
|
|
Three Months Ended
June 30 |
|
Six Months Ended
June 30 |
||||||||||||
(in thousands)
|
2019
|
|
2018
|
|
2019
|
|
2018
|
||||||||
Gain (loss) on marketable equity securities, net
|
$
|
7,791
|
|
|
$
|
(2,554
|
)
|
|
$
|
31,857
|
|
|
$
|
(16,656
|
)
|
Less: Net (gains) losses in earnings from marketable equity securities sold and donated
|
2
|
|
|
1,660
|
|
|
(2,980
|
)
|
|
4,271
|
|
||||
Net unrealized gains (losses) in earnings from marketable equity securities still held at the end of the period
|
$
|
7,793
|
|
|
$
|
(894
|
)
|
|
$
|
28,877
|
|
|
$
|
(12,385
|
)
|
|
As of
|
||||||
|
June 30,
2019 |
|
December 31,
2018 |
||||
(in thousands)
|
|
||||||
Receivables from contracts with customers, less doubtful accounts of $13,212 and $14,775
|
$
|
506,734
|
|
|
$
|
538,021
|
|
Other receivables
|
28,374
|
|
|
44,259
|
|
||
|
$
|
535,108
|
|
|
$
|
582,280
|
|
5.
|
INVENTORIES, CONTRACTS IN PROGRESS AND VEHICLE FLOOR PLAN PAYABLE
|
|
As of
|
||||||
|
June 30,
2019 |
|
December 31,
2018 |
||||
(in thousands)
|
|
||||||
Raw materials
|
$
|
35,937
|
|
|
$
|
37,248
|
|
Work-in-process
|
10,979
|
|
|
11,633
|
|
||
Finished goods
|
71,065
|
|
|
17,861
|
|
||
Contracts in progress
|
2,434
|
|
|
2,735
|
|
||
|
$
|
120,415
|
|
|
$
|
69,477
|
|
(in thousands)
|
Three Months Ended June 30, 2019
|
|
Six Months Ended June 30, 2019
|
||||
Operating lease cost
|
$
|
24,279
|
|
|
$
|
49,289
|
|
Short-term and month-to-month lease cost
|
4,960
|
|
|
9,773
|
|
||
Variable lease cost
|
5,606
|
|
|
9,962
|
|
||
Sublease income
|
(5,041
|
)
|
|
(9,693
|
)
|
||
Total net lease cost
|
$
|
29,804
|
|
|
$
|
59,331
|
|
(in thousands)
|
Six Months Ended June 30, 2019
|
||
Cash Flow Information:
|
|
||
Operating cash flows from operating leases (payments)
|
$
|
56,845
|
|
Right-of-use assets obtained in exchange for new operating lease liabilities (noncash)
|
33,263
|
|
|
|
|
||
|
As of June 30, 2019
|
|
|
Balance Sheet Information:
|
|
||
Lease right-of-use assets
|
$
|
361,603
|
|
|
|
||
Current lease liabilities
|
$
|
80,628
|
|
Noncurrent lease liabilities
|
323,466
|
|
|
Total lease liabilities
|
$
|
404,094
|
|
|
|
||
Weighted average remaining lease term (years)
|
6.8
|
|
|
Weighted average discount rate
|
4.0
|
%
|
(in thousands)
|
June 30, 2019
|
||
2019
|
$
|
47,463
|
|
2020
|
90,945
|
|
|
2021
|
72,940
|
|
|
2022
|
57,898
|
|
|
2023
|
49,627
|
|
|
Thereafter
|
144,935
|
|
|
Total payments
|
463,808
|
|
|
Less: Imputed interest
|
(59,714
|
)
|
|
Total
|
$
|
404,094
|
|
(in thousands)
|
December 31, 2018
|
||
2019
|
$
|
101,009
|
|
2020
|
84,945
|
|
|
2021
|
72,031
|
|
|
2022
|
53,709
|
|
|
2023
|
47,091
|
|
|
Thereafter
|
115,948
|
|
|
|
$
|
474,733
|
|
(in thousands)
|
Education
|
|
Television
Broadcasting
|
|
Healthcare
|
|
Other
Businesses
|
|
Total
|
||||||||||
Balance as of December 31, 2018
|
|
|
|
|
|
|
|
|
|
||||||||||
Goodwill
|
$
|
1,128,699
|
|
|
$
|
190,815
|
|
|
$
|
69,626
|
|
|
$
|
255,024
|
|
|
$
|
1,644,164
|
|
Accumulated impairment losses
|
(331,151
|
)
|
|
—
|
|
|
—
|
|
|
(15,301
|
)
|
|
(346,452
|
)
|
|||||
|
797,548
|
|
|
190,815
|
|
|
69,626
|
|
|
239,723
|
|
|
1,297,712
|
|
|||||
Acquisitions
|
—
|
|
|
—
|
|
|
239
|
|
|
39,121
|
|
|
39,360
|
|
|||||
Foreign currency exchange rate changes
|
(1,111
|
)
|
|
—
|
|
|
—
|
|
|
—
|
|
|
(1,111
|
)
|
|||||
Balance as of June 30, 2019
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||
Goodwill
|
1,127,588
|
|
|
190,815
|
|
|
69,865
|
|
|
294,145
|
|
|
1,682,413
|
|
|||||
Accumulated impairment losses
|
(331,151
|
)
|
|
—
|
|
|
—
|
|
|
(15,301
|
)
|
|
(346,452
|
)
|
|||||
|
$
|
796,437
|
|
|
$
|
190,815
|
|
|
$
|
69,865
|
|
|
$
|
278,844
|
|
|
$
|
1,335,961
|
|
(in thousands)
|
Kaplan
International
|
|
Higher
Education
|
|
Test
Preparation
|
|
Professional (U.S.)
|
|
Total
|
||||||||||
Balance as of December 31, 2018
|
|
|
|
|
|
|
|
|
|
||||||||||
Goodwill
|
$
|
583,424
|
|
|
$
|
174,564
|
|
|
$
|
166,920
|
|
|
$
|
203,791
|
|
|
$
|
1,128,699
|
|
Accumulated impairment losses
|
—
|
|
|
(111,324
|
)
|
|
(102,259
|
)
|
|
(117,568
|
)
|
|
(331,151
|
)
|
|||||
|
583,424
|
|
|
63,240
|
|
|
64,661
|
|
|
86,223
|
|
|
797,548
|
|
|||||
Foreign currency exchange rate changes
|
(1,182
|
)
|
|
—
|
|
|
—
|
|
|
71
|
|
|
(1,111
|
)
|
|||||
Balance as of June 30, 2019
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||
Goodwill
|
582,242
|
|
|
174,564
|
|
|
166,920
|
|
|
203,862
|
|
|
1,127,588
|
|
|||||
Accumulated impairment losses
|
—
|
|
|
(111,324
|
)
|
|
(102,259
|
)
|
|
(117,568
|
)
|
|
(331,151
|
)
|
|||||
|
$
|
582,242
|
|
|
$
|
63,240
|
|
|
$
|
64,661
|
|
|
$
|
86,294
|
|
|
$
|
796,437
|
|
|
|
|
As of June 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
|
|
$
|
282,879
|
|
|
$
|
131,101
|
|
|
$
|
151,778
|
|
|
$
|
282,761
|
|
|
$
|
114,429
|
|
|
$
|
168,332
|
|
Trade names and trademarks
|
2–10 years
|
|
87,308
|
|
|
44,113
|
|
|
43,195
|
|
|
87,285
|
|
|
39,825
|
|
|
47,460
|
|
||||||
Network affiliation agreements
|
10 years
|
|
17,400
|
|
|
4,277
|
|
|
13,123
|
|
|
17,400
|
|
|
3,408
|
|
|
13,992
|
|
||||||
Databases and technology
|
3–6 years
|
|
27,020
|
|
|
10,902
|
|
|
16,118
|
|
|
27,041
|
|
|
8,471
|
|
|
18,570
|
|
||||||
Noncompete agreements
|
2–5 years
|
|
1,358
|
|
|
897
|
|
|
461
|
|
|
1,088
|
|
|
838
|
|
|
250
|
|
||||||
Other
|
1–8 years
|
|
24,530
|
|
|
11,530
|
|
|
13,000
|
|
|
24,530
|
|
|
9,873
|
|
|
14,657
|
|
||||||
|
|
|
$
|
440,495
|
|
|
$
|
202,820
|
|
|
$
|
237,675
|
|
|
$
|
440,105
|
|
|
$
|
176,844
|
|
|
$
|
263,261
|
|
Indefinite-Lived Intangible Assets
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||
Trade names and trademarks
|
|
|
$
|
80,036
|
|
|
|
|
|
|
|
|
$
|
80,102
|
|
|
|
|
|
|
|
||||
Franchise agreements
|
|
|
28,000
|
|
|
|
|
|
|
—
|
|
|
|
|
|
||||||||||
FCC licenses
|
|
|
18,800
|
|
|
|
|
|
|
18,800
|
|
|
|
|
|
||||||||||
Licensure and accreditation
|
|
|
150
|
|
|
|
|
|
|
|
|
150
|
|
|
|
|
|
|
|
||||||
|
|
|
$
|
126,986
|
|
|
|
|
|
|
$
|
99,052
|
|
|
|
|
|
|
As of
|
||||||
|
June 30,
2019 |
|
December 31,
2018 |
||||
(in thousands)
|
|
||||||
5.75% unsecured notes due June 1, 2026
(1)
|
$
|
395,031
|
|
|
$
|
394,675
|
|
U.K. Credit facility
(2)
|
82,324
|
|
|
82,366
|
|
||
Commerical note
|
29,000
|
|
|
—
|
|
||
Other indebtedness
|
90
|
|
|
96
|
|
||
Total Debt
|
$
|
506,445
|
|
|
$
|
477,137
|
|
Less: current portion
|
(9,351
|
)
|
|
(6,360
|
)
|
||
Total Long-Term Debt
|
$
|
497,094
|
|
|
$
|
470,777
|
|
(1)
|
The carrying value is net of
$5.0 million
and
$5.3 million
of unamortized debt issuance costs as of
June 30, 2019
and
December 31, 2018
, respectively.
|
(2)
|
The carrying value is net of
$0.2 million
of unamortized debt issuance costs as of
June 30, 2019
and
December 31, 2018
, respectively.
|
|
As of June 30, 2019
|
||||||||||
(in thousands)
|
Level 1
|
|
Level 2
|
|
Total
|
||||||
Assets
|
|
|
|
|
|
||||||
Money market investments
(1)
|
$
|
—
|
|
|
$
|
71,000
|
|
|
$
|
71,000
|
|
Marketable equity securities
(2)
|
518,099
|
|
|
—
|
|
|
518,099
|
|
|||
Other current investments
(3)
|
11,738
|
|
|
7,038
|
|
|
18,776
|
|
|||
Interest rate swap
(4)
|
—
|
|
|
262
|
|
|
262
|
|
|||
Total Financial Assets
|
$
|
529,837
|
|
|
$
|
78,300
|
|
|
$
|
608,137
|
|
Liabilities
|
|
|
|
|
|
||||||
Deferred compensation plan liabilities
(5)
|
$
|
—
|
|
|
$
|
32,901
|
|
|
$
|
32,901
|
|
Interest rate swap
(6)
|
—
|
|
|
324
|
|
|
324
|
|
|||
Total Financial Liabilities
|
$
|
—
|
|
|
$
|
33,225
|
|
|
$
|
33,225
|
|
|
As of December 31, 2018
|
||||||||||
(in thousands)
|
Level 1
|
|
Level 2
|
|
Total
|
||||||
Assets
|
|
|
|
|
|
||||||
Money market investments
(1)
|
$
|
—
|
|
|
$
|
75,500
|
|
|
$
|
75,500
|
|
Marketable equity securities
(2)
|
496,390
|
|
|
—
|
|
|
496,390
|
|
|||
Other current investments
(3)
|
11,203
|
|
|
6,988
|
|
|
18,191
|
|
|||
Interest rate swap
(4)
|
—
|
|
|
369
|
|
|
369
|
|
|||
Total Financial Assets
|
$
|
507,593
|
|
|
$
|
82,857
|
|
|
$
|
590,450
|
|
Liabilities
|
|
|
|
|
|
||||||
Deferred compensation plan liabilities
(5)
|
$
|
—
|
|
|
$
|
36,080
|
|
|
$
|
36,080
|
|
(1)
|
The Company’s money market investments are included in Cash and Cash Equivalents and the value considers the liquidity of the counterparty.
|
(2)
|
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.
|
(3)
|
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.
|
(4)
|
Included in Deferred Charges and Other 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.
|
(5)
|
Includes Graham Holdings Company’s Deferred Compensation Plan and supplemental savings plan benefits under the Graham Holdings Company’s Supplemental Executive Retirement Plan, which are included in accrued compensation and related benefits. These plans measure the market value of a participant’s balance in a notional investment account that is comprised primarily of mutual funds, which are based on observable market prices. However, since the deferred compensation obligations are not exchanged in an active market, they are classified as Level 2 in the fair value hierarchy. Realized and unrealized gains (losses) on deferred compensation are included in operating income.
|
(6)
|
Included in Other Liabilities. The Company utilized a market approach model using the notional amount of the interest rate swap multiplied by the observable inputs of time to maturity and market interest rates.
|
|
Three Months Ended
June 30 |
|
Six Months Ended
June 30 |
||||||||||||
(in thousands)
|
2019
|
|
2018
|
|
2019
|
|
2018
|
||||||||
Education Revenue
|
|
|
|
|
|
|
|
||||||||
Kaplan international
|
$
|
188,580
|
|
|
$
|
184,303
|
|
|
$
|
374,336
|
|
|
$
|
367,885
|
|
Higher education
|
76,288
|
|
|
85,981
|
|
|
159,068
|
|
|
185,811
|
|
||||
Test preparation
|
65,673
|
|
|
68,604
|
|
|
126,823
|
|
|
127,755
|
|
||||
Professional (U.S.)
|
35,147
|
|
|
31,057
|
|
|
76,361
|
|
|
64,413
|
|
||||
Kaplan corporate and other
|
2,369
|
|
|
442
|
|
|
4,671
|
|
|
727
|
|
||||
Intersegment elimination
|
(294
|
)
|
|
(382
|
)
|
|
(1,042
|
)
|
|
(1,087
|
)
|
||||
|
367,763
|
|
|
370,005
|
|
|
740,217
|
|
|
745,504
|
|
||||
Television broadcasting
|
116,628
|
|
|
114,086
|
|
|
224,851
|
|
|
222,888
|
|
||||
Manufacturing
|
114,873
|
|
|
126,462
|
|
|
230,030
|
|
|
243,868
|
|
||||
Healthcare
|
40,641
|
|
|
38,208
|
|
|
78,369
|
|
|
75,829
|
|
||||
SocialCode
|
16,382
|
|
|
14,770
|
|
|
29,829
|
|
|
28,069
|
|
||||
Other
|
81,359
|
|
|
9,167
|
|
|
126,589
|
|
|
16,000
|
|
||||
Intersegment elimination
|
(44
|
)
|
|
(21
|
)
|
|
(84
|
)
|
|
(45
|
)
|
||||
Total Revenue
|
$
|
737,602
|
|
|
$
|
672,677
|
|
|
$
|
1,429,801
|
|
|
$
|
1,332,113
|
|
|
As of
|
|
||||||
|
June 30,
2019 |
|
December 31,
2018 |
%
|
||||
(in thousands)
|
|
Change
|
||||||
Deferred revenue
|
$
|
245,729
|
|
|
$
|
311,214
|
|
(21)
|
(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
|
$
|
21,311
|
|
|
$
|
19,270
|
|
|
$
|
(25,496
|
)
|
|
$
|
119
|
|
|
$
|
15,204
|
|
|
Three Months Ended
June 30 |
|
Six Months Ended
June 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
|
$
|
57,081
|
|
|
$
|
46,566
|
|
|
$
|
138,829
|
|
|
$
|
89,457
|
|
Less: Dividends paid-common stock outstanding and unvested restricted shares
|
(7,388
|
)
|
|
(6,948
|
)
|
|
(22,167
|
)
|
|
(21,587
|
)
|
||||
Undistributed earnings
|
49,693
|
|
|
39,618
|
|
|
116,662
|
|
|
67,870
|
|
||||
Percent allocated to common stockholders
|
99.43
|
%
|
|
99.33
|
%
|
|
99.43
|
%
|
|
99.33
|
%
|
||||
|
49,410
|
|
|
39,352
|
|
|
115,997
|
|
|
67,416
|
|
||||
Add: Dividends paid-common stock outstanding
|
7,346
|
|
|
6,901
|
|
|
22,041
|
|
|
21,444
|
|
||||
Numerator for basic earnings per share
|
$
|
56,756
|
|
|
$
|
46,253
|
|
|
$
|
138,038
|
|
|
$
|
88,860
|
|
Add: Additional undistributed earnings due to dilutive stock options
|
2
|
|
|
2
|
|
|
5
|
|
|
3
|
|
||||
Numerator for diluted earnings per share
|
$
|
56,758
|
|
|
$
|
46,255
|
|
|
$
|
138,043
|
|
|
$
|
88,863
|
|
Denominator:
|
|
|
|
|
|
|
|
|
|
||||||
Denominator for basic earnings per share:
|
|
|
|
|
|
|
|
|
|
|
|
||||
Weighted average shares outstanding
|
5,285
|
|
|
5,325
|
|
|
5,285
|
|
|
5,380
|
|
||||
Add: Effect of dilutive stock options
|
44
|
|
|
37
|
|
|
43
|
|
|
37
|
|
||||
Denominator for diluted earnings per share
|
5,329
|
|
|
5,362
|
|
|
5,328
|
|
|
5,417
|
|
||||
Graham Holdings Company Common Stockholders:
|
|
|
|
|
|
|
|
||||||||
Basic earnings per share
|
$
|
10.74
|
|
|
$
|
8.69
|
|
|
$
|
26.12
|
|
|
$
|
16.52
|
|
Diluted earnings per share
|
$
|
10.65
|
|
|
$
|
8.63
|
|
|
$
|
25.91
|
|
|
$
|
16.40
|
|
|
Three Months Ended
June 30 |
|
Six Months Ended
June 30 |
||||||||
(in thousands)
|
2019
|
|
2018
|
|
2019
|
|
2018
|
||||
Weighted average restricted stock
|
12
|
|
|
21
|
|
|
11
|
|
|
24
|
|
|
Three Months Ended June 30
|
|
Six Months Ended June 30
|
||||||||||||
(in thousands)
|
2019
|
|
2018
|
|
2019
|
|
2018
|
||||||||
Service cost
|
$
|
4,963
|
|
|
$
|
4,317
|
|
|
$
|
10,184
|
|
|
$
|
9,257
|
|
Interest cost
|
11,743
|
|
|
11,844
|
|
|
23,335
|
|
|
23,099
|
|
||||
Expected return on assets
|
(30,285
|
)
|
|
(32,796
|
)
|
|
(61,123
|
)
|
|
(65,282
|
)
|
||||
Amortization of prior service cost
|
825
|
|
|
36
|
|
|
1,234
|
|
|
78
|
|
||||
Recognized actuarial loss (gain)
|
37
|
|
|
(2,974
|
)
|
|
—
|
|
|
(4,020
|
)
|
||||
Net Periodic Benefit
|
(12,717
|
)
|
|
(19,573
|
)
|
|
(26,370
|
)
|
|
(36,868
|
)
|
||||
Curtailment gain
|
—
|
|
|
—
|
|
|
—
|
|
|
(806
|
)
|
||||
Special separation benefit expense
|
6,607
|
|
|
—
|
|
|
6,607
|
|
|
—
|
|
||||
Total Benefit
|
$
|
(6,110
|
)
|
|
$
|
(19,573
|
)
|
|
$
|
(19,763
|
)
|
|
$
|
(37,674
|
)
|
|
Three Months Ended June 30
|
|
Six Months Ended June 30
|
||||||||||||
(in thousands)
|
2019
|
|
2018
|
|
2019
|
|
2018
|
||||||||
Service cost
|
$
|
215
|
|
|
$
|
204
|
|
|
$
|
429
|
|
|
$
|
409
|
|
Interest cost
|
1,079
|
|
|
966
|
|
|
2,157
|
|
|
1,932
|
|
||||
Amortization of prior service cost
|
84
|
|
|
78
|
|
|
169
|
|
|
156
|
|
||||
Recognized actuarial loss
|
578
|
|
|
601
|
|
|
1,157
|
|
|
1,202
|
|
||||
Net Periodic Cost
|
$
|
1,956
|
|
|
$
|
1,849
|
|
|
$
|
3,912
|
|
|
$
|
3,699
|
|
|
As of
|
||||
|
June 30,
2019 |
|
December 31,
2018 |
||
|
|
||||
U.S. equities
|
55
|
%
|
|
53
|
%
|
U.S. stock index fund
|
26
|
%
|
|
28
|
%
|
U.S. fixed income
|
13
|
%
|
|
13
|
%
|
International equities
|
6
|
%
|
|
6
|
%
|
|
100
|
%
|
|
100
|
%
|
|
Three Months Ended June 30
|
|
Six Months Ended June 30
|
||||||||||||
(in thousands)
|
2019
|
|
2018
|
|
2019
|
|
2018
|
||||||||
Service cost
|
$
|
—
|
|
|
$
|
268
|
|
|
$
|
—
|
|
|
$
|
536
|
|
Interest cost
|
72
|
|
|
169
|
|
|
144
|
|
|
339
|
|
||||
Amortization of prior service credit
|
(1,840
|
)
|
|
(44
|
)
|
|
(3,681
|
)
|
|
(88
|
)
|
||||
Recognized actuarial gain
|
(1,090
|
)
|
|
(921
|
)
|
|
(2,180
|
)
|
|
(1,843
|
)
|
||||
Net Periodic Benefit
|
$
|
(2,858
|
)
|
|
$
|
(528
|
)
|
|
$
|
(5,717
|
)
|
|
$
|
(1,056
|
)
|
|
Three Months Ended
June 30 |
|
Six Months Ended
June 30 |
||||||||||||
(in thousands)
|
2019
|
|
2018
|
|
2019
|
|
2018
|
||||||||
Gain on sale of an equity affiliate
|
$
|
—
|
|
|
$
|
—
|
|
|
$
|
28,994
|
|
|
$
|
—
|
|
Foreign currency gain (loss), net
|
109
|
|
|
(2,266
|
)
|
|
623
|
|
|
(2,089
|
)
|
||||
Gain on sales of businesses
|
232
|
|
|
1,334
|
|
|
421
|
|
|
7,241
|
|
||||
Gain on sale of a cost method investment
|
—
|
|
|
—
|
|
|
—
|
|
|
2,845
|
|
||||
Gain (loss) on sale of property, plant and equipment
|
—
|
|
|
2,542
|
|
|
(44
|
)
|
|
2,542
|
|
||||
Other, net
|
887
|
|
|
723
|
|
|
585
|
|
|
981
|
|
||||
Total Other Non-Operating Income
|
$
|
1,228
|
|
|
$
|
2,333
|
|
|
$
|
30,579
|
|
|
$
|
11,520
|
|
|
Three Months Ended June 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
|
$
|
(11,104
|
)
|
|
$
|
—
|
|
|
$
|
(11,104
|
)
|
|
$
|
(31,167
|
)
|
|
$
|
—
|
|
|
$
|
(31,167
|
)
|
Pension and other postretirement plans:
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||
Amortization of net prior service (credit) cost included in net income
|
(931
|
)
|
|
251
|
|
|
(680
|
)
|
|
70
|
|
|
(19
|
)
|
|
51
|
|
||||||
Amortization of net actuarial gain included in net income
|
(475
|
)
|
|
129
|
|
|
(346
|
)
|
|
(3,294
|
)
|
|
888
|
|
|
(2,406
|
)
|
||||||
|
(1,406
|
)
|
|
380
|
|
|
(1,026
|
)
|
|
(3,224
|
)
|
|
869
|
|
|
(2,355
|
)
|
||||||
Cash flow hedges:
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||
Gain for the period
|
40
|
|
|
(5
|
)
|
|
35
|
|
|
371
|
|
|
(70
|
)
|
|
301
|
|
||||||
Other Comprehensive Loss
|
$
|
(12,470
|
)
|
|
$
|
375
|
|
|
$
|
(12,095
|
)
|
|
$
|
(34,020
|
)
|
|
$
|
799
|
|
|
$
|
(33,221
|
)
|
|
Six Months Ended June 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
|
$
|
(1,071
|
)
|
|
$
|
—
|
|
|
$
|
(1,071
|
)
|
|
$
|
(19,603
|
)
|
|
$
|
—
|
|
|
$
|
(19,603
|
)
|
Pension and other postretirement plans:
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||
Amortization of net prior service (credit) cost included in net income
|
(2,278
|
)
|
|
615
|
|
|
(1,663
|
)
|
|
146
|
|
|
(40
|
)
|
|
106
|
|
||||||
Amortization of net actuarial gain included in net income
|
(1,023
|
)
|
|
276
|
|
|
(747
|
)
|
|
(4,661
|
)
|
|
1,257
|
|
|
(3,404
|
)
|
||||||
|
(3,301
|
)
|
|
891
|
|
|
(2,410
|
)
|
|
(4,515
|
)
|
|
1,217
|
|
|
(3,298
|
)
|
||||||
Cash flow hedges:
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||
(Loss) gain for the period
|
(427
|
)
|
|
103
|
|
|
(324
|
)
|
|
607
|
|
|
(115
|
)
|
|
492
|
|
||||||
Other Comprehensive Loss
|
$
|
(4,799
|
)
|
|
$
|
994
|
|
|
$
|
(3,805
|
)
|
|
$
|
(23,511
|
)
|
|
$
|
1,102
|
|
|
$
|
(22,409
|
)
|
(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
|
$
|
(29,270
|
)
|
|
$
|
232,836
|
|
|
$
|
263
|
|
|
$
|
203,829
|
|
Other comprehensive loss before reclassifications
|
(1,071
|
)
|
|
—
|
|
|
(226
|
)
|
|
(1,297
|
)
|
||||
Net amount reclassified from accumulated other comprehensive income (loss)
|
—
|
|
|
(2,410
|
)
|
|
(98
|
)
|
|
(2,508
|
)
|
||||
Other comprehensive loss, net of tax
|
(1,071
|
)
|
|
(2,410
|
)
|
|
(324
|
)
|
|
(3,805
|
)
|
||||
Balance as of June 30, 2019
|
$
|
(30,341
|
)
|
|
$
|
230,426
|
|
|
$
|
(61
|
)
|
|
$
|
200,024
|
|
|
Three Months Ended
June 30 |
|
Six Months Ended
June 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
|
$
|
(931
|
)
|
|
$
|
70
|
|
|
$
|
(2,278
|
)
|
|
$
|
146
|
|
|
(1)
|
Amortization of net actuarial gain
|
(475
|
)
|
|
(3,294
|
)
|
|
(1,023
|
)
|
|
(4,661
|
)
|
|
(1)
|
||||
|
(1,406
|
)
|
|
(3,224
|
)
|
|
(3,301
|
)
|
|
(4,515
|
)
|
|
Before tax
|
||||
|
380
|
|
|
869
|
|
|
891
|
|
|
1,217
|
|
|
Provision for Income Taxes
|
||||
|
(1,026
|
)
|
|
(2,355
|
)
|
|
(2,410
|
)
|
|
(3,298
|
)
|
|
Net of Tax
|
||||
Cash Flow Hedges
|
|
|
|
|
|
|
|
|
|
||||||||
|
(58
|
)
|
|
(45
|
)
|
|
(127
|
)
|
|
(42
|
)
|
|
Interest expense
|
||||
|
14
|
|
|
9
|
|
|
29
|
|
|
8
|
|
|
Provision for Income Taxes
|
||||
|
(44
|
)
|
|
(36
|
)
|
|
(98
|
)
|
|
(34
|
)
|
|
Net of Tax
|
||||
Total reclassification for the period
|
$
|
(1,070
|
)
|
|
$
|
(2,391
|
)
|
|
$
|
(2,508
|
)
|
|
$
|
(3,332
|
)
|
|
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
|
|
Six months ended
|
||||||||||||
|
June 30
|
|
June 30
|
||||||||||||
(in thousands)
|
2019
|
|
2018
|
|
2019
|
|
2018
|
||||||||
Operating Revenues
|
|
|
|
|
|
|
|
||||||||
Education
|
$
|
367,763
|
|
|
$
|
370,005
|
|
|
$
|
740,217
|
|
|
$
|
745,504
|
|
Television broadcasting
|
116,628
|
|
|
114,086
|
|
|
224,851
|
|
|
222,888
|
|
||||
Healthcare
|
40,641
|
|
|
38,208
|
|
|
78,369
|
|
|
75,829
|
|
||||
Other businesses
|
212,614
|
|
|
150,399
|
|
|
386,448
|
|
|
287,937
|
|
||||
Corporate office
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
||||
Intersegment elimination
|
(44
|
)
|
|
(21
|
)
|
|
(84
|
)
|
|
(45
|
)
|
||||
|
$
|
737,602
|
|
|
$
|
672,677
|
|
|
$
|
1,429,801
|
|
|
$
|
1,332,113
|
|
Income (Loss) from Operations
|
|
|
|
|
|
|
|
||||||||
Education
|
$
|
26,305
|
|
|
$
|
37,554
|
|
|
$
|
51,900
|
|
|
$
|
60,254
|
|
Television broadcasting
|
44,494
|
|
|
41,118
|
|
|
80,034
|
|
|
81,660
|
|
||||
Healthcare
|
2,598
|
|
|
764
|
|
|
4,927
|
|
|
(627
|
)
|
||||
Other businesses
|
(2,196
|
)
|
|
(1,054
|
)
|
|
(11,433
|
)
|
|
(4,749
|
)
|
||||
Corporate office
|
(13,238
|
)
|
|
(12,756
|
)
|
|
(27,462
|
)
|
|
(26,698
|
)
|
||||
|
$
|
57,963
|
|
|
$
|
65,626
|
|
|
$
|
97,966
|
|
|
$
|
109,840
|
|
Equity in Earnings of Affiliates, Net
|
1,467
|
|
|
931
|
|
|
3,146
|
|
|
3,510
|
|
||||
Interest Expense, Net
|
(6,807
|
)
|
|
(15,264
|
)
|
|
(12,532
|
)
|
|
(21,963
|
)
|
||||
Debt Extinguishment Costs
|
—
|
|
|
(11,378
|
)
|
|
—
|
|
|
(11,378
|
)
|
||||
Non-Operating Pension and Postretirement Benefit Income, Net
|
12,253
|
|
|
23,041
|
|
|
32,181
|
|
|
44,427
|
|
||||
Gain (Loss) on Marketable Equity Securities, Net
|
7,791
|
|
|
(2,554
|
)
|
|
31,857
|
|
|
(16,656
|
)
|
||||
Other Income, Net
|
1,228
|
|
|
2,333
|
|
|
30,579
|
|
|
11,520
|
|
||||
Income Before Income Taxes
|
$
|
73,895
|
|
|
$
|
62,735
|
|
|
$
|
183,197
|
|
|
$
|
119,300
|
|
Depreciation of Property, Plant and Equipment
|
|
|
|
|
|
|
|
||||||||
Education
|
$
|
6,137
|
|
|
$
|
6,839
|
|
|
$
|
12,338
|
|
|
$
|
14,445
|
|
Television broadcasting
|
3,293
|
|
|
2,974
|
|
|
6,532
|
|
|
6,045
|
|
||||
Healthcare
|
607
|
|
|
647
|
|
|
1,217
|
|
|
1,300
|
|
||||
Other businesses
|
3,605
|
|
|
2,906
|
|
|
6,838
|
|
|
5,965
|
|
||||
Corporate office
|
242
|
|
|
253
|
|
|
482
|
|
|
506
|
|
||||
|
$
|
13,884
|
|
|
$
|
13,619
|
|
|
$
|
27,407
|
|
|
$
|
28,261
|
|
Amortization of Intangible Assets and Impairment of Long-Lived Assets
|
|
|
|
|
|
|
|
|
|||||||
Education
|
$
|
4,070
|
|
|
$
|
1,663
|
|
|
$
|
7,637
|
|
|
$
|
2,812
|
|
Television broadcasting
|
1,408
|
|
|
1,408
|
|
|
2,816
|
|
|
2,816
|
|
||||
Healthcare
|
1,410
|
|
|
1,809
|
|
|
2,808
|
|
|
3,617
|
|
||||
Other businesses
|
6,685
|
|
|
6,519
|
|
|
13,372
|
|
|
12,538
|
|
||||
Corporate office
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
||||
|
$
|
13,573
|
|
|
$
|
11,399
|
|
|
$
|
26,633
|
|
|
$
|
21,783
|
|
Pension Service Cost
|
|
|
|
|
|
|
|
|
|||||||
Education
|
$
|
2,522
|
|
|
$
|
1,878
|
|
|
$
|
5,186
|
|
|
$
|
4,542
|
|
Television broadcasting
|
780
|
|
|
601
|
|
|
1,511
|
|
|
1,094
|
|
||||
Healthcare
|
63
|
|
|
165
|
|
|
246
|
|
|
287
|
|
||||
Other businesses
|
367
|
|
|
378
|
|
|
841
|
|
|
667
|
|
||||
Corporate office
|
1,231
|
|
|
1,295
|
|
|
2,400
|
|
|
2,667
|
|
||||
|
$
|
4,963
|
|
|
$
|
4,317
|
|
|
$
|
10,184
|
|
|
$
|
9,257
|
|
|
As of
|
||||||
(in thousands)
|
June 30, 2019
|
|
December 31, 2018
|
||||
Identifiable Assets
|
|
|
|
||||
Education
|
$
|
1,789,059
|
|
|
$
|
1,568,747
|
|
Television broadcasting
|
475,379
|
|
|
452,853
|
|
||
Healthcare
|
123,876
|
|
|
108,596
|
|
||
Other businesses
|
962,227
|
|
|
827,113
|
|
||
Corporate office
|
160,095
|
|
|
162,971
|
|
||
|
$
|
3,510,636
|
|
|
$
|
3,120,280
|
|
Investments in Marketable Equity Securities
|
518,099
|
|
|
496,390
|
|
||
Investments in Affiliates
|
159,660
|
|
|
143,813
|
|
||
Prepaid Pension Cost
|
1,024,555
|
|
|
1,003,558
|
|
||
Total Assets
|
$
|
5,212,950
|
|
|
$
|
4,764,041
|
|
|
|
Three Months Ended
|
|
Six months ended
|
||||||||||||
|
June 30
|
|
June 30
|
||||||||||||
(in thousands)
|
2019
|
|
2018
|
|
2019
|
|
2018
|
||||||||
Operating Revenues
|
|
|
|
|
|
|
|
||||||||
Kaplan international
|
$
|
188,580
|
|
|
$
|
184,303
|
|
|
$
|
374,336
|
|
|
$
|
367,885
|
|
Higher education
|
76,288
|
|
|
85,981
|
|
|
159,068
|
|
|
185,811
|
|
||||
Test preparation
|
65,673
|
|
|
68,604
|
|
|
126,823
|
|
|
127,755
|
|
||||
Professional (U.S.)
|
35,147
|
|
|
31,057
|
|
|
76,361
|
|
|
64,413
|
|
||||
Kaplan corporate and other
|
2,369
|
|
|
442
|
|
|
4,671
|
|
|
727
|
|
||||
Intersegment elimination
|
(294
|
)
|
|
(382
|
)
|
|
(1,042
|
)
|
|
(1,087
|
)
|
||||
|
$
|
367,763
|
|
|
$
|
370,005
|
|
|
$
|
740,217
|
|
|
$
|
745,504
|
|
Income (Loss) from Operations
|
|
|
|
|
|
|
|
|
|
|
|||||
Kaplan international
|
$
|
25,537
|
|
|
$
|
24,187
|
|
|
$
|
49,822
|
|
|
$
|
44,591
|
|
Higher education
|
2,721
|
|
|
11,219
|
|
|
4,636
|
|
|
12,574
|
|
||||
Test preparation
|
4,289
|
|
|
6,120
|
|
|
3,835
|
|
|
6,641
|
|
||||
Professional (U.S.)
|
4,745
|
|
|
4,780
|
|
|
16,004
|
|
|
14,095
|
|
||||
Kaplan corporate and other
|
(10,990
|
)
|
|
(8,763
|
)
|
|
(22,394
|
)
|
|
(17,658
|
)
|
||||
Intersegment elimination
|
3
|
|
|
11
|
|
|
(3
|
)
|
|
11
|
|
||||
|
$
|
26,305
|
|
|
$
|
37,554
|
|
|
$
|
51,900
|
|
|
$
|
60,254
|
|
Depreciation of Property, Plant and Equipment
|
|
|
|
|
|
|
|
|
|
|
|
||||
Kaplan international
|
$
|
3,716
|
|
|
$
|
3,764
|
|
|
$
|
7,598
|
|
|
$
|
7,738
|
|
Higher education
|
629
|
|
|
1,274
|
|
|
1,226
|
|
|
3,132
|
|
||||
Test preparation
|
779
|
|
|
973
|
|
|
1,584
|
|
|
1,951
|
|
||||
Professional (U.S.)
|
959
|
|
|
670
|
|
|
1,824
|
|
|
1,312
|
|
||||
Kaplan corporate and other
|
54
|
|
|
158
|
|
|
106
|
|
|
312
|
|
||||
|
$
|
6,137
|
|
|
$
|
6,839
|
|
|
$
|
12,338
|
|
|
$
|
14,445
|
|
Amortization of Intangible Assets
|
$
|
3,377
|
|
|
$
|
1,663
|
|
|
$
|
6,944
|
|
|
$
|
2,812
|
|
Impairment of Long-lived Assets
|
$
|
693
|
|
|
$
|
—
|
|
|
$
|
693
|
|
|
$
|
—
|
|
Pension Service Cost
|
|
|
|
|
|
|
|
|
|
|
|
||||
Kaplan international
|
$
|
110
|
|
|
$
|
84
|
|
|
$
|
227
|
|
|
$
|
167
|
|
Higher education
|
1,102
|
|
|
804
|
|
|
2,265
|
|
|
2,210
|
|
||||
Test preparation
|
821
|
|
|
729
|
|
|
1,687
|
|
|
1,458
|
|
||||
Professional (U.S.)
|
329
|
|
|
290
|
|
|
677
|
|
|
580
|
|
||||
Kaplan corporate and other
|
160
|
|
|
(29
|
)
|
|
330
|
|
|
127
|
|
||||
|
$
|
2,522
|
|
|
$
|
1,878
|
|
|
$
|
5,186
|
|
|
$
|
4,542
|
|
|
As of
|
||||||
(in thousands)
|
June 30, 2019
|
|
December 31, 2018
|
||||
Identifiable assets
|
|
|
|
||||
Kaplan international
|
$
|
1,225,819
|
|
|
$
|
1,101,040
|
|
Higher education
|
186,623
|
|
|
126,752
|
|
||
Test preparation
|
158,612
|
|
|
145,308
|
|
||
Professional (U.S.)
|
156,632
|
|
|
166,916
|
|
||
Kaplan corporate and other
|
61,373
|
|
|
28,731
|
|
||
|
$
|
1,789,059
|
|
|
$
|
1,568,747
|
|
•
|
a
$7.8 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
$6.0 million
, or
$1.13
per share);
|
•
|
$6.6 million
in expenses related to a non-operating Separation Incentive Program at the education division (after-tax impact of
$5.1 million
, or
$0.95
per share);
|
•
|
$7.8 million
in net gains on marketable equity securities (after-tax impact of
$5.8 million
, or
$1.09
per share); and
|
•
|
$0.1 million
in non-operating foreign currency gains (after-tax impact of
$0.1 million
, or
$0.02
per share).
|
•
|
an
$0.8 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
$0.6 million
, or
$0.11
per share);
|
•
|
$6.2 million
in interest expense related to the settlement of a mandatorily redeemable noncontroling interest (
$1.14
per share);
|
•
|
$11.4 million
in debt extinguishment costs (after-tax impact of
$8.6 million
, or
$1.60
per share);
|
•
|
$2.6 million
in net losses on marketable equity securities (after-tax impact of
$1.9 million
or
$0.36
per share); and
|
•
|
$2.3 million
in non-operating foreign currency losses (after-tax impact of
$1.7 million
, or
$0.32
per share).
|
•
|
a
$9.6 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
$7.4 million
, or
$1.38
per share);
|
•
|
$6.6 million
in expenses related to a non-operating Separation Incentive Program at the education division (after-tax impact of
$5.1 million
, or
$0.95
per share);
|
•
|
$31.9 million
in net gains on marketable equity securities (after-tax impact of
$23.9 million
, or
$4.46
per share);
|
•
|
$29.0 million
gain from the sale of Gimlet Media (after-tax impact of
$21.7 million
, or
$4.06
per share);
|
•
|
$0.6 million
in non-operating foreign currency gains (after-tax impact of
$0.5 million
, or
$0.09
per share); and
|
•
|
$1.7 million
in income tax benefits related to stock compensation (
$0.32
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
$0.8 million
, or
$0.15
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);
|
•
|
$16.7 million
in net losses on marketable equity securities (after-tax impact of
$12.7 million
, or
$2.30
per share);
|
•
|
a
$4.3 million
gain on the Kaplan University Transaction (after-tax impact of
$1.8 million
, or
$0.33
per share);
|
•
|
$2.1 million
in non-operating foreign currency losses (after-tax impact of
$1.6 million
, or
$0.30
per share); and
|
•
|
$1.8 million
in income tax benefits related to stock compensation (
$0.33
per share).
|
|
Three Months Ended
|
|
|
|
Six Months Ended
|
|
|
||||||||||||||
|
June 30
|
|
|
|
June 30
|
|
|
||||||||||||||
(in thousands)
|
2019
|
|
2018
|
|
% Change
|
|
2019
|
|
2018
|
|
% Change
|
||||||||||
Revenue
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||
Kaplan international
|
$
|
188,580
|
|
|
$
|
184,303
|
|
|
2
|
|
|
$
|
374,336
|
|
|
$
|
367,885
|
|
|
2
|
|
Higher education
|
76,288
|
|
|
85,981
|
|
|
(11
|
)
|
|
159,068
|
|
|
185,811
|
|
|
(14
|
)
|
||||
Test preparation
|
65,673
|
|
|
68,604
|
|
|
(4
|
)
|
|
126,823
|
|
|
127,755
|
|
|
(1
|
)
|
||||
Professional (U.S.)
|
35,147
|
|
|
31,057
|
|
|
13
|
|
|
76,361
|
|
|
64,413
|
|
|
19
|
|
||||
Kaplan corporate and other
|
2,369
|
|
|
442
|
|
|
—
|
|
|
4,671
|
|
|
727
|
|
|
—
|
|
||||
Intersegment elimination
|
(294
|
)
|
|
(382
|
)
|
|
—
|
|
|
(1,042
|
)
|
|
(1,087
|
)
|
|
—
|
|
||||
|
$
|
367,763
|
|
|
$
|
370,005
|
|
|
(1
|
)
|
|
$
|
740,217
|
|
|
$
|
745,504
|
|
|
(1
|
)
|
Operating Income (Loss)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||
Kaplan international
|
$
|
25,537
|
|
|
$
|
24,187
|
|
|
6
|
|
|
$
|
49,822
|
|
|
$
|
44,591
|
|
|
12
|
|
Higher education
|
2,721
|
|
|
11,219
|
|
|
(76
|
)
|
|
4,636
|
|
|
12,574
|
|
|
(63
|
)
|
||||
Test preparation
|
4,289
|
|
|
6,120
|
|
|
(30
|
)
|
|
3,835
|
|
|
6,641
|
|
|
(42
|
)
|
||||
Professional (U.S.)
|
4,745
|
|
|
4,780
|
|
|
(1
|
)
|
|
16,004
|
|
|
14,095
|
|
|
14
|
|
||||
Kaplan corporate and other
|
(6,920
|
)
|
|
(7,100
|
)
|
|
3
|
|
|
(14,757
|
)
|
|
(14,846
|
)
|
|
1
|
|
||||
Amortization of intangible assets
|
(3,377
|
)
|
|
(1,663
|
)
|
|
—
|
|
|
(6,944
|
)
|
|
(2,812
|
)
|
|
—
|
|
||||
Impairment of long-lived assets
|
(693
|
)
|
|
—
|
|
|
—
|
|
|
(693
|
)
|
|
—
|
|
|
—
|
|
||||
Intersegment elimination
|
3
|
|
|
11
|
|
|
—
|
|
|
(3
|
)
|
|
11
|
|
|
—
|
|
||||
|
$
|
26,305
|
|
|
$
|
37,554
|
|
|
(30
|
)
|
|
$
|
51,900
|
|
|
$
|
60,254
|
|
|
(14
|
)
|
|
|
Three Months Ended
|
|
|
|
Six Months Ended
|
|
|
||||||||||||||
|
|
June 30
|
|
%
|
|
June 30
|
|
%
|
||||||||||||||
(in thousands)
|
|
2019
|
|
2018
|
|
Change
|
|
2019
|
|
2018
|
|
Change
|
||||||||||
Operating Revenues
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||
Manufacturing
|
|
$
|
114,873
|
|
|
$
|
126,462
|
|
|
(9
|
)
|
|
$
|
230,030
|
|
|
$
|
243,868
|
|
|
(6
|
)
|
SocialCode
|
|
16,382
|
|
|
14,770
|
|
|
11
|
|
|
29,829
|
|
|
28,069
|
|
|
6
|
|
||||
Other
|
|
81,359
|
|
|
9,167
|
|
|
—
|
|
|
126,589
|
|
|
16,000
|
|
|
—
|
|
||||
|
|
$
|
212,614
|
|
|
$
|
150,399
|
|
|
41
|
|
|
$
|
386,448
|
|
|
$
|
287,937
|
|
|
34
|
|
Operating Expenses
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||
Manufacturing
|
|
$
|
110,181
|
|
|
$
|
117,797
|
|
|
(6
|
)
|
|
$
|
222,064
|
|
|
$
|
226,575
|
|
|
(2
|
)
|
SocialCode
|
|
17,357
|
|
|
16,512
|
|
|
5
|
|
|
34,822
|
|
|
33,592
|
|
|
4
|
|
||||
Other
|
|
87,272
|
|
|
17,144
|
|
|
—
|
|
|
140,995
|
|
|
32,519
|
|
|
—
|
|
||||
|
|
$
|
214,810
|
|
|
$
|
151,453
|
|
|
42
|
|
|
$
|
397,881
|
|
|
$
|
292,686
|
|
|
36
|
|
Operating Income (Loss)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||
Manufacturing
|
|
$
|
4,692
|
|
|
$
|
8,665
|
|
|
(46
|
)
|
|
$
|
7,966
|
|
|
$
|
17,293
|
|
|
(54
|
)
|
SocialCode
|
|
(975
|
)
|
|
(1,742
|
)
|
|
44
|
|
|
(4,993
|
)
|
|
(5,523
|
)
|
|
10
|
|
||||
Other
|
|
(5,913
|
)
|
|
(7,977
|
)
|
|
26
|
|
|
(14,406
|
)
|
|
(16,519
|
)
|
|
13
|
|
||||
|
|
$
|
(2,196
|
)
|
|
$
|
(1,054
|
)
|
|
—
|
|
|
$
|
(11,433
|
)
|
|
$
|
(4,749
|
)
|
|
—
|
|
Depreciation
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||||
Manufacturing
|
|
$
|
2,384
|
|
|
$
|
2,331
|
|
|
2
|
|
|
$
|
4,817
|
|
|
$
|
4,782
|
|
|
1
|
|
SocialCode
|
|
384
|
|
|
200
|
|
|
92
|
|
|
536
|
|
|
433
|
|
|
24
|
|
||||
Other
|
|
837
|
|
|
375
|
|
|
—
|
|
|
1,485
|
|
|
750
|
|
|
98
|
|
||||
|
|
$
|
3,605
|
|
|
$
|
2,906
|
|
|
24
|
|
|
$
|
6,838
|
|
|
$
|
5,965
|
|
|
15
|
|
Amortization of Intangible Assets
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||||
Manufacturing
|
|
$
|
6,528
|
|
|
$
|
5,935
|
|
|
10
|
|
|
$
|
13,058
|
|
|
$
|
11,871
|
|
|
10
|
|
SocialCode
|
|
157
|
|
|
584
|
|
|
(73
|
)
|
|
314
|
|
|
667
|
|
|
(53
|
)
|
||||
Other
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
||||
|
|
$
|
6,685
|
|
|
$
|
6,519
|
|
|
3
|
|
|
$
|
13,372
|
|
|
$
|
12,538
|
|
|
7
|
|
Pension Expense
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||
Manufacturing
|
|
$
|
15
|
|
|
$
|
19
|
|
|
(21
|
)
|
|
$
|
40
|
|
|
$
|
36
|
|
|
11
|
|
SocialCode
|
|
191
|
|
|
205
|
|
|
(7
|
)
|
|
439
|
|
|
361
|
|
|
22
|
|
||||
Other
|
|
161
|
|
|
154
|
|
|
5
|
|
|
362
|
|
|
270
|
|
|
34
|
|
||||
|
|
$
|
367
|
|
|
$
|
378
|
|
|
(3
|
)
|
|
$
|
841
|
|
|
$
|
667
|
|
|
26
|
|
Exhibit
Number
|
Description
|
|
|
3.1
|
|
|
|
3.2
|
|
|
|
3.3
|
|
|
|
4.1
|
|
|
|
4.2
|
|
|
|
31.1
|
|
|
|
31.2
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32
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101.INS
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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
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101.SCH
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XBRL Taxonomy Extension Schema Document
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101.CAL
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XBRL Taxonomy Extension Calculation Linkbase Document
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101.DEF
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XBRL Taxonomy Extension Definition Linkbase Document
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101.LAB
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XBRL Taxonomy Extension Label Linkbase Document
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101.PRE
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XBRL Taxonomy Extension Presentation Linkbase Document
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*
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Furnished herewith.
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GRAHAM HOLDINGS COMPANY
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(Registrant)
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Date: July 31, 2019
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/s/ Timothy J. O’Shaughnessy
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Timothy J. O’Shaughnessy,
President & Chief Executive Officer
(Principal Executive Officer)
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Date: July 31, 2019
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/s/ Wallace R. Cooney
|
|
|
Wallace R. Cooney,
Chief Financial Officer
(Principal Financial Officer)
|
1 Year Graham Chart |
1 Month Graham Chart |
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