Business Segments

9 Months Ended

Sep. 30, 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.

Education. In the third quarter of 2014, Kaplan completed the sale of three of its schools in China that were previously included as part of Kaplan International. An additional school in China is expected to be sold by Kaplan in the fourth quarter of 2014. The results of the four schools are included in discontinued operations, net of tax, for all periods presented. The Kaplan International segment operating results have been reclassified to reflect this change.

Television Broadcasting. In June 2014, the Company completed the sale of 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 reclassified to reflect this change.

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

	Three Months Ended						Nine Months Ended
	September 30						September 30
(in thousands)	2014			2013			2014			2013
Operating Revenues
Education	$	543,918		$	543,599		$	1,609,036		$	1,613,116
Cable	195,666			202,381			600,416			607,069
Television broadcasting	87,442			73,488			261,390			222,618
Other businesses	71,845			36,682			139,109			98,068
Corporate office	—			—			—			—
Intersegment elimination	—			(49		)	(128		)	(202		)
	$	898,871		$	856,101		$	2,609,823		$	2,540,669
Income (Loss) From Operations
Education	$	12,551		$	17,508		$	32,050		$	36,586
Cable	40,072			39,715			128,015			121,038
Television broadcasting	44,979			32,847			133,452			101,193
Other businesses	(9,292		)	(5,046		)	(27,034		)	(19,556		)
Corporate office	(7,029		)	(6,135		)	(4,773		)	(17,516		)
	$	81,281		$	78,889		$	261,710		$	221,745
Equity in Earnings of Affiliates, Net	4,613			5,892			100,168			13,178
Interest Expense, Net	(8,801		)	(8,579		)	(24,938		)	(25,555		)
Other Income (Expense), Net	64,526			8,110			465,913			(8,831		)
Income from Continuing Operations Before Income Taxes	$	141,619		$	84,312		$	802,853		$	200,537
Depreciation of Property, Plant and Equipment
Education	$	15,237		$	18,945		$	47,024		$	61,518
Cable	34,410			32,946			101,985			100,643
Television broadcasting	2,148			2,181			6,181			6,604
Other businesses	1,201			555			2,501			1,561
Corporate office	78			45			589			105
	$	53,074		$	54,672		$	158,280		$	170,431
Amortization of Intangible Assets
Education	$	1,927		$	1,918		$	5,649		$	6,081
Cable	51			61			145			168
Television broadcasting	—			—			—			—
Other businesses	5,427			489			7,323			2,531
Corporate office	—			—			—			—
	$	7,405		$	2,468		$	13,117		$	8,780
Net Pension (Credit) Expense
Education	$	3,854		$	4,169		$	11,563		$	12,506
Cable	917			973			2,669			2,768
Television broadcasting	338			1,297			1,016			3,891
Other businesses	191			173			557			423
Corporate office	(18,620		)	(9,299		)	(59,231		)	(27,549		)
	$	(13,320	)	$	(2,687	)	$	(43,426	)	$	(7,961	)

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

	As of
(in thousands)	September 30, 2014		December 31, 2013
Identifiable Assets
Education	$	1,732,199	$	1,921,037
Cable television	1,190,932		1,215,320
Television broadcasting	293,810		383,251
Other businesses	455,154		171,539
Corporate office	390,056		371,484
	$	4,062,151	$	4,062,631
Investments in Marketable Equity Securities	127,270		487,156
Investments in Affiliates	21,976		15,754
Prepaid Pension Cost	1,267,415		1,245,505
Assets Held for Sale	9,624		—
Total Assets	$	5,488,436	$	5,811,046

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

	Three Months Ended						Nine Months Ended
	September 30						September 30
(in thousands)	2014			2013			2014			2013
Operating Revenues
Higher education	$	249,882		$	266,061		$	755,597		$	811,013
Test preparation	85,108			77,431			234,010			232,064
Kaplan international	207,615			198,452			615,507			564,705
Kaplan corporate and other	1,492			2,223			4,891			6,496
Intersegment elimination	(179		)	(568		)	(969		)	(1,162		)
	$	543,918		$	543,599		$	1,609,036		$	1,613,116
Income (Loss) from Operations
Higher education	$	5,391		$	14,719		$	39,487		$	42,354
Test preparation	6,980			3,820			(3,552		)	7,306
Kaplan international	13,853			12,124			40,609			23,701
Kaplan corporate and other	(13,651		)	(13,311		)	(44,608		)	(37,156		)
Intersegment elimination	(22		)	156			114			381
	$	12,551		$	17,508		$	32,050		$	36,586
Depreciation of Property, Plant and Equipment
Higher education	$	7,320		$	9,739		$	22,140		$	33,919
Test preparation	2,865			5,034			9,721			14,658
Kaplan international	4,951			3,870			14,546			11,903
Kaplan corporate and other	101			302			617			1,038
	$	15,237		$	18,945		$	47,024		$	61,518
Amortization of Intangible Assets	$	1,927		$	1,918		$	5,649		$	6,081
Pension Expense
Higher education	$	2,628		$	3,201		$	7,885		$	8,815
Test preparation	722			731			2,166			2,012
Kaplan international	89			99			267			273
Kaplan corporate and other	415			138			1,245			1,406
	$	3,854		$	4,169		$	11,563		$	12,506

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

	As of
(in thousands)	September 30, 2014		December 31, 2013
Identifiable assets
Higher education	$	626,116	$	859,208
Test preparation	178,835		173,435
Kaplan international	869,246		864,507
Kaplan corporate and other	58,002		23,887
	$	1,732,199	$	1,921,037