Discontinued Operations

12 Months Ended

Dec. 31, 2011

Discontinued Operations [Abstract]

Discontinued Operations [Text Block]

3. DISCONTINUED OPERATIONS

In October 2011, Kaplan completed the sale of Kaplan Compliance Solutions (KCS). Under the terms of the asset purchase agreement, the buyer received KCS' net working capital, tangible and intangible assets and assumed certain liabilities. The Company recorded an after-tax gain on the transaction of $1.5 million, which is included in loss from discontinued operations, net of tax in the Company's Consolidated Statement of Operations for fiscal year 2011.In July 2011, Kaplan completed the sale of Kaplan Virtual Education (KVE). Under the terms of the asset purchase agreement, the buyer received KVE's intellectual property, education programs and selected other long-lived assets. The Company recorded an after-tax loss on the transaction of $1.2million, which is included in loss from discontinued operations, net of tax in the Company's Consolidated Statement of Operations for fiscal year 2011.

In April 2010, Kaplan completed the sale of Education Connection and in September 2010, the Company completed the sale of Newsweek magazine. The results of operations of KCS, KVE, Education Connection and the magazine publishing division for fiscal years 2011, 2010 and 2009, where applicable, are included in the Company's Consolidated Statements of Operations as loss from discontinued operations, net of tax. All corresponding prior period operating results presented in the Company's Consolidated Financial Statements and the accompanying notes have been reclassified to reflect the discontinued operations presented.The Company did not reclassify its Consolidated Statements of Cash Flows or prior year Consolidated Balance Sheet to reflect the discontinued operations.

Newsweek employees were participants in The Washington Post Company Retirement Plan, and the Company had historically allocated Newsweek a net pension credit for segment reporting purposes. Since the associated pension assets and liabilities were retained by the Company, the associated credits of $25.8 million and $34.6 million, respectively, for fiscal years 2010 and 2009 have been excluded from the reclassification of Newsweek results to discontinued operations. Pension cost arising from early retirement programs at Newsweek, however, is included in discontinued operations (see Note 13). In fiscal year 2010, Newsweek recorded $4.7 millionin accelerated depreciation and property, plant, and equipment write-downs in anticipation of the sale.

The summarized loss from discontinued operations, net of tax, for the years ended December 31, 2011,January 2, 2011 and January 3, 2010follows:

(in thousands)	2011		2010		2009
Operating revenues	$	34,769	$	133,013	$	243,691
Operating costs and expenses		42,133		176,454		340,098
Loss from discontinued operations		(7,364)		(43,441)		(96,407)
Benefit from income taxes		(2,834)		(16,369)		(31,400)
Net loss from discontinued operations		(4,530)		(27,072)		(65,007)
Gain (loss) on sale of discontinued operations		2,975		(9,156)		―
Provision for income taxes on sale of discontinued operations		2,616		5,869		―
Loss from discontinued operations, net of tax	$	(4,171)	$	(42,097)	$	(65,007)