Summary of Quarterly Operating Results and Comprehensive Income (Unaudited) (Tables)

12 Months Ended

Dec. 31, 2014

Quarterly Financial Information Disclosure [Abstract]

Schedule of Quarterly Results of Operations and Comprehensive Income

Quarterly results of operations and comprehensive income for the year ended December 31, 2014, is as follows:

(in thousands, except per share amounts)	First Quarter			Second Quarter			Third Quarter			Fourth Quarter
Operating Revenues
Education	$	522,154		$	542,964		$	543,918		$	551,381
Subscriber	191,128			187,723			183,161			184,035
Advertising	78,247			82,475			81,583			101,271
Other	45,012			61,249			90,209			88,656
	836,541			874,411			898,871			925,343
Operating Costs and Expenses
Operating	376,463			395,627			398,922			391,348
Selling, general and administrative	325,275			322,240			358,189			319,854
Depreciation of property, plant and equipment	53,217			51,989			53,074			45,366
Amortization of intangible assets	2,717			2,995			7,405			5,251
Impairment of intangible and other long-lived assets	—			—			—			17,302
	757,672			772,851			817,590			779,121
Income from Operations	78,869			101,560			81,281			146,222
Equity in earnings of affiliates, net	4,052			91,503			4,613			202
Interest income	599			641			529			367
Interest expense	(8,820		)	(8,557		)	(9,330		)	(9,879		)
Other income, net	133,273			268,114			64,526			387,346
Income from Continuing Operations Before Income Taxes	207,973			453,261			141,619			524,258
Provision for Income Taxes	77,400			78,600			58,200			191,900
Income from Continuing Operations	130,573			374,661			83,419			332,358
Income (Loss) from Discontinued Operations, Net of Tax	1,732			375,189			(6,980		)	2,308
Net Income	132,305			749,850			76,439			334,666
Net Loss (Income) Attributable to Noncontrolling Interests	219			499			121			(256		)
Net Income Attributable to Graham Holdings Company	132,524			750,349			76,560			334,410
Redeemable Preferred Stock Dividends	(426		)	(212		)	(209		)	—
Net Income Attributable to Graham Holdings Company Common Stockholders	$	132,098		$	750,137		$	76,351		$	334,410
Amounts Attributable to Graham Holdings Company Common Stockholders
Income from continuing operations	$	130,366		$	374,948		$	83,331		$	332,102
Income (loss) from discontinued operations, net of tax	1,732			375,189			(6,980		)	2,308
Net income attributable to Graham Holdings Company common stockholders	$	132,098		$	750,137		$	76,351		$	334,410
Per Share Information Attributable to Graham Holdings Company Common Stockholders
Basic income per common share from continuing operations	$	17.62		$	50.39		$	14.38		$	57.31
Basic income (loss) per common share from discontinued operations	0.23			50.41			(1.20		)	0.40
Basic net income per common share	$	17.85		$	100.80		$	13.18		$	57.71
Diluted income per common share from continuing operations	$	17.56		$	50.22		$	14.32		$	57.01
Diluted income (loss) per common share from discontinued operations	0.23			50.26			(1.20		)	0.40
Diluted net income per common share	$	17.79		$	100.48		$	13.12		$	57.41
Basic average number of common shares outstanding	7,275			7,284			5,671			5,678
Diluted average number of common shares outstanding	7,352			7,363			5,757			5,770
2014 Quarterly comprehensive income	$	146,115		$	593,463		$	68,246		$	240,005

The sum of the four quarters may not necessarily be equal to the annual amounts reported in the Consolidated Statements of Operations due to rounding and the reduction in shares outstanding as a result of the Berkshire exchange transaction that closed on June 30, 2014.

Quarterly results of operations and comprehensive income for the year ended December 31, 2013, is as follows:

(in thousands, except per share amount)	First Quarter			Second Quarter			Third Quarter (1)			Fourth Quarter
Operating Revenues
Education	$	524,639		$	544,878		$	543,599		$	550,618
Subscriber	186,790			192,273			190,302			186,297
Advertising	69,122			79,898			73,549			87,692
Other	36,865			50,103			48,651			42,635
	817,416			867,152			856,101			867,242
Operating Costs and Expenses
Operating	374,516			392,500			393,010			372,471
Selling, general and administrative	333,894			318,731			327,062			331,814
Depreciation of property, plant and equipment	58,910			56,849			54,672			58,924
Amortization of intangible assets	3,362			2,950			2,468			3,359
Impairment of intangibles and other long-lived assets	—			—			—			3,250
	770,682			771,030			777,212			769,818
Income from Operations	46,734			96,122			78,889			97,424
Equity in earnings of affiliates, net	3,418			3,868			5,892			37
Interest income	510			522			642			590
Interest expense	(8,960		)	(9,048		)	(9,221		)	(8,838		)
Other (expense) income, net	(4,083		)	(12,858		)	8,110			(14,920		)
Income from Continuing Operations Before Income Taxes	37,619			78,606			84,312			74,293
Provision for Income Taxes	15,800			31,700			29,900			24,100
Income from Continuing Operations	21,819			46,906			54,412			50,193
(Loss) Income from Discontinued Operations, Net of Tax	(16,560		)	(1,772		)	(23,988		)	106,335
Net Income	5,259			45,134			30,424			156,528
Net Income Attributable to Noncontrolling Interests	(97		)	(253		)	(75		)	(55		)
Net Income Attributable to Graham Holdings Company	5,162			44,881			30,349			156,473
Redeemable Preferred Stock Dividends	(444		)	(206		)	(205		)	—
Net Income Attributable to Graham Holdings Company Common Stockholders	$	4,718		$	44,675		$	30,144		$	156,473
Amounts Attributable to Graham Holdings Company Common Stockholders
Income from continuing operations	$	21,278		$	46,447		$	54,132		$	50,138
(Loss) income from discontinued operations, net of tax	(16,560		)	(1,772		)	(23,988		)	106,335
Net income attributable to Graham Holdings Company common stockholders	$	4,718		$	44,675		$	30,144		$	156,473
Per Share Information Attributable to Graham Holdings Company Common Stockholders
Basic income per common share from continuing operations	$	2.87		$	6.26		$	7.29		$	6.79
Basic (loss) income per common share from discontinued operations	(2.23		)	(0.24		)	(3.22		)	14.41
Basic net income per common share	$	0.64		$	6.02		$	4.07		$	21.20
Diluted income per common share from continuing operations	$	2.87		$	6.26		$	7.28		$	6.77
Diluted (loss) income per common share from discontinued operations	(2.23		)	(0.24		)	(3.23		)	14.37
Diluted net income per common share	$	0.64		$	6.02		$	4.05		$	21.14
Basic average number of common shares outstanding	7,227			7,229			7,231			7,266
Diluted average number of common shares outstanding	7,266			7,283			7,337			7,347
2013 Quarterly comprehensive income	$	29,129		$	61,125		$	37,533		$	555,695

________________

⁽¹⁾ Other revenue and operating expenses of $29.9 million from the third quarter of 2013 have been revised to correctly present revenue on a net basis for certain third quarter contracts that were previously reported on a gross basis. The amounts did not impact net income, and the Company concluded that the amounts were not material to the Company’s consolidated financial statements.

The sum of the four quarters may not necessarily be equal to the annual amounts reported in the Consolidated Statements of Operations due to rounding.

Schedule Of Quarterly Impact From Certain Items

Quarterly impact from certain items in 2014 and 2013 (after-tax and diluted EPS amounts):

		First Quarter			Second Quarter			Third Quarter			Fourth Quarter
2014
Ÿ	Charges of $20.2 million in connection with early retirement program expense and related charges, restructuring charges and software asset write-offs at the education division and corporate office ($2.9 million, $6.7 million, $8.7 million and $1.9 million in the first, second, third and fourth quarters, respectively)	$	(0.39	)	$	(0.90	)	$	(1.50	)	$	(0.33	)
Ÿ	Intangible and other long-lived assets impairment charge of $11.2 million at Kaplan and other businesses										$	(1.92	)
Ÿ	Gain of $249.8 million from the sale of Classified Ventures										$	42.89
Ÿ	Gain of $58.2 million from the Classified Ventures' sale of apartments.com				$	7.80
Ÿ	Gain of $266.7 million from the Berkshire exchange transaction				$	35.73
Ÿ	Gain of $81.8 million on the sale of the corporate headquarters building	$	11.13
Ÿ	Gain of $48.2 million from the sale of wireless licenses at the cable division							$	8.29
Ÿ	Losses, net, of $7.1 million for non-operating unrealized foreign currency (losses) gains ($3.2 million gain, $1.9 million gain, $6.8 million loss and $5.5 million loss in the first, second, third and fourth quarters, respectively)	$	0.44		$	0.25		$	(1.16	)	$	(0.94	)

2013
Ÿ	Charges of $25.3 million in connection with severance and restructuring at the education division ($6.1 million, $3.9 million, $3.1 million and $12.2 million in the first, second, third and fourth quarters, respectively)	$	(0.85	)	$	(0.54	)	$	(0.42	)	$	(1.66	)
Ÿ	Intangible and other long-lived assets impairment charge of $3.2 million at Kaplan										$	(0.44	)
Ÿ	Write-down of marketable equity security of $6.7 million										$	(0.91	)
Ÿ	Losses, net, of $8.6 million for non-operating unrealized foreign currency (losses) gains ($3.0 million loss, $8.1 million loss, $5.0 million gain and $2.6 million loss in the first, second, third and fourth quarters, respectively)	$	(0.41	)	$	(1.11	)	$	0.69		$	(0.35	)