Business Segments

3 Months Ended

Mar. 31, 2014

Segment Reporting [Abstract]

Business Segments

BUSINESS SEGMENTS

The Company has six reportable segments: Kaplan Higher Education, Kaplan Test Preparation, Kaplan International, cable, television broadcasting and other businesses.

Television Broadcasting. In April 2014, the Company announced it has entered into an agreement to sell WPLG, a television station serving the Miami market. WPLG results are included in discontinued operations, net of tax, for all periods presented. The television broadcasting segment operating results have been restated to reflect this change.

 The following table summarizes the quarterly financial information related to each of the Company’s business segments:

	March 31,			March 31,			June 30,			September 30,			December 31,
(in thousands)	2014			2013			2013			2013			2013
Operating Revenues
Education	$	526,174		$	527,815		$	548,230		$	546,452		$	555,011
Cable	203,921			200,138			204,550			202,381			200,240
Television broadcasting	85,651			68,902			80,228			73,488			85,688
Other businesses	24,913			23,814			37,572			36,682			30,735
Corporate office	—			—			—			—			—
Intersegment elimination	(98		)	(77		)	(76		)	(49		)	(39		)
	$	840,561		$	820,592		$	870,504		$	858,954		$	871,635
Income (Loss) From Operations
Education	$	2,522		$	(4,056	)	$	23,726		$	17,035		$	14,596
Cable	41,162			36,613			44,710			39,715			48,697
Television broadcasting	44,386			29,111			39,235			32,847			43,999
Other businesses	(10,747		)	(8,542		)	(5,968		)	(5,046		)	(3,912		)
Corporate office	2,206			(5,979		)	(5,402		)	(6,135		)	(5,763		)
	$	79,529		$	47,147		$	96,301		$	78,416		$	97,617
Equity in Earnings of Affiliates, Net	4,052			3,418			3,868			5,892			37
Interest Expense, Net	(8,221		)	(8,450		)	(8,526		)	(8,579		)	(8,248		)
Other Income (Expense), Net	133,273			(4,083		)	(12,858		)	8,110			(14,920		)
Income from Continuing Operations Before Income Taxes	$	208,633		$	38,032		$	78,785		$	83,839		$	74,486
Depreciation of Property, Plant and Equipment
Education	$	16,444		$	22,588		$	20,064		$	18,978		$	28,134
Cable	33,787			33,733			33,964			32,946			27,541
Television broadcasting	1,994			2,209			2,214			2,181			2,142
Other businesses	520			429			577			555			616
Corporate office	500			—			60			45			521
	$	53,245		$	58,959		$	56,879		$	54,705		$	58,954
Amortization of Intangible Assets and Impairment of Goodwill and Other Long-Lived Assets
Education	$	2,288		$	2,518		$	2,363		$	2,287		$	6,044
Cable	35			50			57			61			52
Television broadcasting	—			—			—			—			—
Other businesses	758			1,149			893			489			885
Corporate office	—			—			—			—			—
	$	3,081		$	3,717		$	3,313		$	2,837		$	6,981
Net Pension (Credit) Expense
Education	$	4,143		$	4,106		$	4,231		$	4,169		$	4,032
Cable	864			882			913			973			940
Television broadcasting	320			1,344			1,250			1,297			70
Other businesses	164			116			134			173			187
Corporate office	(17,679		)	(9,121		)	(9,129		)	(9,299		)	(14,287		)
	$	(12,188	)	$	(2,673	)	$	(2,601	)	$	(2,687	)	$	(9,058	)

The following table summarizes annual financial information related to each of the Company’s business segments:

	Year Ended December 31
(in thousands)	2013			2012
Operating Revenues
Education	$	2,177,508		$	2,196,496
Cable television	807,309			787,117
Television broadcasting	308,306			328,396
Other businesses	128,803			72,837
Corporate office	—			—
Intersegment elimination	(241		)	(296		)
	$	3,421,685		$	3,384,550
Income (Loss) from Operations
Education	$	51,301		$	(105,368	)
Cable television	169,735			154,581
Television broadcasting	145,192			162,131
Other businesses	(23,468		)	(33,010		)
Corporate office	(23,279		)	(28,665		)
	$	319,481		$	149,669
Equity in Earnings of Affiliates, Net	13,215			14,086
Interest Expense, Net	(33,803		)	(32,551		)
Other Expense, Net	(23,751		)	(5,456		)
Income from Continuing Operations Before Income Taxes	$	275,142		$	125,748
Depreciation of Property, Plant and Equipment
Education	$	89,764		$	101,183
Cable television	128,184			129,107
Television broadcasting	8,746			9,253
Other businesses	2,177			770
Corporate office	626			—
	$	229,497		$	240,313
Amortization of Intangible Assets and Impairment of Goodwill and Other Intangible Assets
Education	$	13,212		$	129,312
Cable television	220			211
Television broadcasting	—			—
Other businesses	3,416			3,016
Corporate office	—			—
	$	16,848		$	132,539
Net Pension (Credit) Expense
Education	$	16,538		$	11,584
Cable television	3,708			2,540
Television broadcasting	3,961			5,046
Other businesses	610			169
Corporate office	(41,836		)	(27,871		)
	$	(17,019	)	$	(8,532	)

Asset information for the Company’s business segments are as follows:

	As of
(in thousands)	March 31, 2014		December 31, 2013
Identifiable Assets
Education	$	1,745,562	$	1,921,037
Cable television	1,183,434		1,215,320
Television broadcasting	291,518		383,251
Other businesses	156,858		171,539
Corporate office	647,173		371,484
	$	4,024,545	$	4,062,631
Investments in Marketable Equity Securities	510,697		487,156
Investments in Affiliates	20,953		15,754
Prepaid Pension Cost	1,250,658		1,245,505
Assets Held for Sale	113,709		—
Total Assets	$	5,920,562	$	5,811,046

The Company’s education division comprises the following operating segments:

	Three Months Ended
	March 31
(in thousands)	2014			2013
Operating Revenues
Higher education	$	253,779		$	271,860
Test preparation	67,804			68,943
Kaplan international	202,867			184,813
Kaplan corporate and other	2,014			2,604
Intersegment elimination	(290		)	(405		)
	$	526,174		$	527,815
Income (Loss) from Operations
Higher education	$	13,144		$	5,101
Test preparation	(6,628		)	(4,345		)
Kaplan international	10,882			6,397
Kaplan corporate and other	(14,920		)	(11,340		)
Intersegment elimination	44			131
	$	2,522		$	(4,056	)
Depreciation of Property, Plant and Equipment
Higher education	$	7,740		$	13,439
Test preparation	3,784			4,758
Kaplan international	4,708			3,996
Kaplan corporate and other	212			395
	$	16,444		$	22,588
Amortization of Intangible Assets	$	2,288		$	2,518
Pension Expense
Higher education	$	2,628		$	2,807
Test preparation	722			640
Kaplan international	89			87
Kaplan corporate and other	704			572
	$	4,143		$	4,106

Identifiable assets for the Company’s education division consist of the following:

	As of
(in thousands)	March 31, 2014		December 31, 2013
Identifiable assets
Higher education	$	653,409	$	859,208
Test preparation	177,288		173,435
Kaplan international	866,656		864,507
Kaplan corporate and other	48,209		23,887
	$	1,745,562	$	1,921,037