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Discontinued Operations
 9 Months Ended
Sep. 30, 2012
Discontinued Operations [Abstract]  
Discontinued Operations [Text Block]

2. DISCONTINUED OPERATIONS

 

In August 2012, the Company completed the sale of Kidum and recorded a pre-tax gain of $3.6 million and an after-tax gain of $10.2 million related to this sale in the third quarter of 2012. On July 31, 2012, the Company disposed of its interest in Avenue100 Media Solutions, Inc. and recorded a pre-tax loss of $5.7 million related to the disposition. An income tax benefit of $44.5 million was also recorded in the third quarter of 2012 as the Company determined that Avenue100 has no value. The income tax benefit is due to the Company's tax basis in the stock of Avenue100 exceeding its net book value, as a result of goodwill and other intangible asset impairment charges recorded in 2008, 2010 and 2011 for which no tax benefit was previously recorded. This activity is included in Income (Loss) from Discontinued Operations, Net of Tax in the Company's Condensed Consolidated Statement of Operations for the three and nine months ended September 30, 2012.

 

In April 2012, the Company completed the sale of Kaplan EduNeering. Under the terms of the agreement, the purchaser acquired the stock of EduNeering and received substantially all the assets and liabilities. In the second quarter of 2012, the Company recorded an after-tax gain of $18.5 million related to this sale, subject to final net working capital adjustments, which is included in Income (Loss) from Discontinued Operations, Net of Tax in the Company's Condensed Consolidated Statement of Operations for the nine months ended September 30, 2012. In February 2012, Kaplan completed the stock sale of Kaplan Learning Technologies (KLT) and recorded an after-tax loss on the sale of $1.9 million, which is included in Income (Loss) from Discontinued Operations, Net of Tax in the Company's Condensed Consolidated Statement of Operations for the nine months ended September 30, 2012.

 

The Company recorded $23.2 million of income tax benefits in the first quarter of 2012 in connection with the sale of its stock in EduNeering and KLT related to the excess of the outside stock tax basis over the net book value of the net assets disposed.

 

In October 2011, Kaplan completed the sale of Kaplan Compliance Solutions (KCS) and in July 2011, Kaplan completed the sale of Kaplan Virtual Education (KVE). The results of operations of Kidum, Avenue100, EduNeering, KLT, KCS and KVE, for the third quarter and first nine months of 2012 and 2011, where applicable, are included in the Company's Condensed Consolidated Statements of Operations as Income (Loss) from Discontinued Operations, Net of Tax. All corresponding prior period operating results presented in the Company's condensed consolidated financial statements and the accompanying notes have been reclassified to reflect the discontinued operations presented. The Company did not reclassify its Condensed Consolidated Statements of Cash Flows or prior year Condensed Consolidated Balance Sheet to reflect the discontinued operations.

The summarized income (loss) from discontinued operations, net of tax, is presented below:

   Three Months Ended Nine Months Ended
   September 30, October 2, September 30, October 2,
(in thousands) 2012 2011 2012 2011
Operating revenues $ 4,861 $ 23,956 $ 35,342 $ 95,219
Operating costs and expenses   (5,579)   (44,359)   (42,583)   (131,096)
Loss from discontinued operations   (718)   (20,403)   (7,241)   (35,877)
Provision for (benefit from) income taxes   232   (2,782)   (2,068)   (8,282)
Net Loss from Discontinued Operations   (950)   (17,621)   (5,173)   (27,595)
(Loss) gain on sales and disposition of discontinued operations   (2,174)   516   23,759   516
(Benefit from) provision for income taxes on sales and disposition             
 of discontinued operations   (52,178)   1,683   (64,591)   1,683
Income (Loss) from Discontinued Operations, Net of Tax $ 49,054 $ (18,788) $ 83,177 $ (28,762)

The following table summarizes the 2012 quarterly operating results of the Company following the reclassification of the operations discussed above as discontinued operations:

   March 31, June 30,
(in thousands, except per share amounts) 2012 2012
Operating Revenues      
 Education $ 547,280 $ 552,202
 Advertising   170,750   190,086
 Circulation and subscriber   215,230   219,286
 Other   27,939   33,450
     961,199   995,024
Operating Costs and Expenses      
 Operating   463,106   464,615
 Selling, general and administrative   411,466   400,676
 Depreciation of property, plant and equipment   62,275   62,749
 Amortization of intangible assets   3,873   4,428
     940,720   932,468
Income from Operations   20,479   62,556
 Equity in earnings of affiliates, net   3,888   3,314
 Interest income   1,069   775
 Interest expense   (9,163)   (8,979)
 Other income (expense), net   8,588   (635)
Income from Continuing Operations before Income Taxes   24,861   57,031
Provision for Income Taxes   11,400   21,000
Income from Continuing Operations   13,461   36,031
Income from Discontinued Operations, Net of Tax   18,107   16,016
Net Income   31,568   52,047
Net Income Attributable to Noncontrolling Interests   (70)   (11)
Net Income Attributable to The Washington Post Company   31,498   52,036
Redeemable Preferred Stock Dividends   (451)   (222)
Net Income Attributable to The Washington Post Company Common Stockholders $ 31,047 $ 51,814
        
Amounts Attributable to The Washington Post Company Common Stockholders      
Income from continuing operations $ 12,940 $ 35,798
Income from discontinued operations, net of tax   18,107   16,016
Net income attributable to the Washington Post Company common stockholders $ 31,047 $ 51,814
        
Per Share Information Attributable to The Washington Post Company Common Stockholders      
Basic income per common share from continuing operations $ 1.66 $ 4.72
Basic income per common share from discontinued operations   2.41   2.12
Basic net income per common share $ 4.07 $ 6.84
        
Diluted income per common share from continuing operations $ 1.66 $ 4.72
Diluted income per common share from discontinued operations   2.41   2.12
Diluted net income per common share $ 4.07 $ 6.84

The following table summarizes the 2011 quarterly operating results of the Company following the reclassification of the operations discussed above as discontinued operations:

    April 3, July 3, October 2, December 31,
(in thousands, except per share amounts) 2011 2011 2011 2011
Operating Revenues            
 Education $ 611,714 $ 610,371 $ 601,611 $ 580,763
 Advertising   177,385   193,352   170,552   213,255
 Circulation and subscriber   214,523   216,606   212,145   213,183
 Other   25,299   28,976   28,190   33,220
      1,028,921   1,049,305   1,012,498   1,040,421
Operating Costs and Expenses            
 Operating   463,303   488,577   486,615   465,666
 Selling, general and administrative   438,744   405,729   387,735   397,518
 Depreciation of property, plant and equipment   61,929   62,615   61,589   62,932
 Amortization of intangible assets   5,176   5,797   6,320   5,042
      969,152   962,718   942,259   931,158
Income from Operations   59,769   86,587   70,239   109,263
 Equity in earnings (losses) of affiliates, net   3,737   3,138   (1,494)   568
 Interest income   982   997   994   1,174
 Interest expense   (7,961)   (7,960)   (8,667)   (8,638)
 Other (expense) income, net   (24,032)   (2,591)   (29,650)   1,073
Income from Continuing Operations before Income Taxes   32,495   80,171   31,422   103,440
Provision for Income Taxes   12,100   29,200   18,600   42,000
Income from Continuing Operations   20,395   50,971   12,822   61,440
(Loss) Income from Discontinued Operations, Net of Tax   (4,766)   (5,208)   (18,788)   291
Net Income (Loss)   15,629   45,763   (5,966)   61,731
Net (Income) Loss Attributable to Noncontrolling Interests   (14)   40   (16)   (17)
Net Income (Loss) Attributable to The Washington Post Company   15,615   45,803   (5,982)   61,714
Redeemable Preferred Stock Dividends   (461)   (230)   (226)   ―
Net Income (Loss) Attributable to The Washington Post Company            
 Common Stockholders $ 15,154 $ 45,573 $ (6,208) $ 61,714
Amounts Attributable to The Washington Post Company            
 Common Stockholders            
Income from continuing operations $ 19,920 $ 50,781 $ 12,580 $ 61,423
(Loss) income from discontinued operations, net of tax   (4,766)   (5,208)   (18,788)   291
Net income (loss) attributable to the Washington Post             
 Company common stockholders $ 15,154 $ 45,573 $ (6,208) $ 61,714
Per Share Information Attributable to The Washington Post             
 Company Common Stockholders            
Basic income per common share from continuing operations $ 2.43 $ 6.40 $ 1.59 $ 8.00
Basic (loss) income per common share from discontinued operations   (0.56)   (0.66)   (2.41)   0.03
Basic net income (loss) per common share $ 1.87 $ 5.74 $ (0.82) $ 8.03
Diluted income per common share from continuing operations $ 2.43 $ 6.40 $ 1.59 $ 8.00
Diluted (loss) income per common share from discontinued operations   (0.56)   (0.66)   (2.41)   0.03
Diluted net income (loss) per common share $ 1.87 $ 5.74 $ (0.82) $ 8.03

The following table summarizes the operating results of the Company following the reclassification of operations discussed above as discontinued operations:

   Fiscal Year Ended
   December 31, January 2,
(in thousands, except per share amounts) 2011 2011
Operating Revenues      
 Education $ 2,404,459 $ 2,804,840
 Advertising   754,544   833,605
 Circulation and subscriber   856,457   857,290
 Other   115,685   90,682
     4,131,145   4,586,417
Operating Costs and Expenses      
 Operating   1,904,161   1,850,402
 Selling, general and administrative   1,629,726   1,869,194
 Depreciation of property, plant and equipment   249,065   242,405
 Amortization of intangible assets   22,335   21,552
     3,805,287   3,983,553
Income from Operations   325,858   602,864
 Equity in earnings (losses) of affiliates, net   5,949   (4,133)
 Interest income   4,147   2,576
 Interest expense   (33,226)   (30,503)
 Other (expense) income, net   (55,200)   7,515
Income from Continuing Operations Before Income Taxes   247,528   578,319
Provision for Income Taxes   101,900   222,400
Income from Continuing Operations   145,628   355,919
Loss from Discontinued Operations, Net of Tax   (28,471)   (77,899)
Net Income   117,157   278,020
Net (Income) Loss attributable to noncontrolling interests   (7)   94
Net Income Attributable to The Washington Post Company   117,150   278,114
Redeemable Preferred Stock Dividends   (917)   (922)
Net Income Attributable to The Washington Post Company Common Stockholders $ 116,233 $ 277,192
Amounts Attributable to The Washington Post Company Common Stockholders      
Income from continuing operations $ 144,704 $ 355,091
Loss from discontinued operations, net of tax   (28,471)   (77,899)
Net income attributable to the Washington Post Company common stockholders $ 116,233 $ 277,192
Per Share Information Attributable to The Washington Post Company Common       
 Stockholders      
Basic income per common share from continuing operations $ 18.30 $ 39.78
Basic loss per common share from discontinued operations   (3.60)   (8.72)
Basic net income per common share $ 14.70 $ 31.06
Diluted income per common share from continuing operations $ 18.30 $ 39.76
Diluted loss per common share from discontinued operations   (3.60)   (8.72)
Diluted net income per common share $ 14.70 $ 31.04