Discontinued Operations (Tables)

9 Months Ended

Sep. 30, 2015

Income Statement, Balance Sheet and Additional Disclosures by Disposal Groups, Including Discontinued Operations [Line Items]

Summarized Discontinued Operations Information

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

	Three Months Ended   September 30					Nine Months Ended   September 30
(in thousands)	2015		2014			2015			2014
Operating revenues	$	—	$	196,960		$	397,404		$	647,128
Operating costs and expenses	1,662		(157,819		)	(325,379		)	(511,981		)
Operating income	1,662		39,141			72,025			135,147
Non-operating income (expense)	—		75,217			(1,288		)	75,153
Income from discontinued operations	1,662		114,358			70,737			210,300
Provision for income taxes	1,283		42,331			27,783			77,271
Net Income from Discontinued Operations	379		72,027			42,954			133,029
(Loss) gain on sales of discontinued operations	—		(4,352		)	(732		)	349,875
Expense (benefit) from income taxes on sales of discontinued operations	—		1,466			52			(16,304		)
Income from Discontinued Operations, Net of Tax	$	379	$	66,209		$	42,170		$	499,208

CY Quarterly Operating Results After Reclassifying Certain Operations As Discontinued Operations

The following table summarizes the 2015 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)	2015			2015
Operating Revenues
Education	$	500,602		$	523,625
Advertising	66,454			70,137
Other	80,369			87,128
	647,425			680,890
Operating Costs and Expenses
Operating	309,223			311,121
Selling, general and administrative	302,405			276,412
Depreciation of property, plant and equipment	22,197			25,609
Amortization of intangible assets	4,738			4,647
Impairment of long-lived assets	—			6,876
	638,563			624,665
Income from Operations	8,862			56,225
Equity in losses of affiliates, net	(404		)	(353		)
Interest income	559			323
Interest expense	(8,501		)	(8,348		)
Other (expense) income, net	(1,105		)	11,678
(Loss) Income from Continuing Operations before Income Taxes	(589		)	59,525
Provision for Income Taxes	900			19,600
(Loss) Income from Continuing Operations	(1,489		)	39,925
Income from Discontinued Operations, Net of Tax	23,289			18,502
Net Income	21,800			58,427
Net Income Attributable to Noncontrolling Interests	(774		)	(434		)
Net Income Attributable to Graham Holdings Company	21,026			57,993
Redeemable Preferred Stock Dividends	(420		)	(211		)
Net Income Attributable to Graham Holdings Company Common Stockholders	$	20,606		$	57,782
Amounts Attributable to Graham Holdings Company Common Stockholders
(Loss) income from continuing operations	$	(2,683	)	$	39,280
Income from discontinued operations, net of tax	23,289			18,502
Net income attributable to Graham Holdings Company common stockholders	$	20,606		$	57,782
Per Share Information Attributable to Graham Holdings Company Common Stockholders
Basic (loss) income per common share from continuing operations	$	(0.58	)	$	6.74
Basic income per common share from discontinued operations	4.09			3.18
Basic net income per common share	$	3.51		$	9.92
Diluted (loss) income per common share from continuing operations	$	(0.58	)	$	6.71
Diluted income per common share from discontinued operations	4.06			3.16
Diluted net income per common share	$	3.48		$	9.87

2014 Quarterly Operating Results After Reclassifying Certain Operations As Discontinued Operations

The following table summarizes the 2014 quarterly operating results of the Company following the reclassification of the operations discussed above as discontinued operations:

	March 31,			June 30,			September 30,			December 31,
(in thousands, except per share amounts)	2014			2014			2014			2014
Operating Revenues
Education	$	522,154		$	542,964		$	543,918		$	551,381
Advertising	70,115			73,587			72,951			91,561
Other	40,351			57,031			86,336			84,683
	632,620			673,582			703,205			727,625
Operating Costs and Expenses
Operating	296,507			321,163			326,395			317,687
Selling, general and administrative	276,294			276,502			309,583			269,779
Depreciation of property, plant and equipment	19,430			18,201			18,664			18,618
Amortization of intangible assets	2,682			2,936			7,354			5,215
Impairment of intangible and other long-lived assets	—			—			—			17,302
	594,913			618,802			661,996			628,601
Income from Operations	37,707			54,780			41,209			99,024
Equity in earnings of affiliates, net	4,052			91,503			4,613			202
Interest income	599			641			529			367
Interest expense	(8,788		)	(8,525		)	(9,298		)	(8,922		)
Other (expense) income, net	133,273			268,114			(10,723		)	387,346
Income from Continuing Operations before Income Taxes	166,843			406,513			26,330			478,017
Provision for Income Taxes	62,300			61,900			16,100			172,000
Income from Continuing Operations	104,543			344,613			10,230			306,017
Income from Discontinued Operations, Net of Tax	27,762			405,237			66,209			28,649
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	$	104,336		$	344,900		$	10,142		$	305,761
Income from discontinued operations, net of tax	27,762			405,237			66,209			28,649
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	$	14.10		$	46.35		$	1.73		$	52.76
Basic income per common share from discontinued operations	3.75			54.45			11.45			4.95
Basic net income per common share	$	17.85		$	100.80		$	13.18		$	57.71
Diluted income per common share from continuing operations	$	14.05		$	46.20		$	1.73		$	52.48
Diluted income per common share from discontinued operations	3.74			54.28			11.39			4.93
Diluted net income per common share	$	17.79		$	100.48		$	13.12		$	57.41

Yearly Operating Results After Reclassifying Certain Operations As Discontinued Operations

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

(in thousands, except per share amounts)	2014			2013
Operating Revenues
Education	$	2,160,417		$	2,163,734
Advertising	308,214			275,024
Other	268,401			161,844
	2,737,032			2,600,602
Operating Costs and Expenses
Operating	1,261,753			1,210,863
Selling, general and administrative	1,132,157			1,123,965
Depreciation of property, plant and equipment	74,913			101,171
Amortization of intangible assets	18,187			11,919
Impairment of intangible and other long-lived assets	17,302			3,250
	2,504,312			2,451,168
Income from Operations	232,720			149,434
Equity in earnings of affiliates, net	100,370			13,215
Interest income	2,136			2,264
Interest expense	(35,533		)	(35,931		)
Other income (expense), net	778,010			(23,751		)
Income from Continuing Operations before Income Taxes	1,077,703			105,231
Provision for Income Taxes	312,300			40,500
Income from Continuing Operations	765,403			64,731
Income from Discontinued Operations, Net of Tax	527,857			172,614
Net Income	1,293,260			237,345
Net Loss (Income) Attributable to Noncontrolling Interests	583			(480		)
Net Income Attributable to Graham Holdings Company	1,293,843			236,865
Redeemable Preferred Stock Dividends	(847		)	(855		)
Net Income Attributable to Graham Holdings Company Common Stockholders	$	1,292,996		$	236,010
Amounts Attributable to Graham Holdings Company Common Stockholders
Income from continuing operations	$	765,139		$	63,396
Income from discontinued operations, net of tax	527,857			172,614
Net income attributable to Graham Holdings Company common stockholders	$	1,292,996		$	236,010
Per Share Information Attributable to Graham Holdings Company Common Stockholders
Basic income per common share from continuing operations	$	115.88		$	8.62
Basic income per common share from discontinued operations	79.93			23.48
Basic net income per common share	$	195.81		$	32.10
Diluted income per common share from continuing operations	$	115.40		$	8.61
Diluted income per common share from discontinued operations	79.63			23.44
Diluted net income per common share	$	195.03		$	32.05

Cable Spin-Off [Member]

Income Statement, Balance Sheet and Additional Disclosures by Disposal Groups, Including Discontinued Operations [Line Items]

Summarized Discontinued Operations Information

On July 1, 2015, the Company divested the following assets and liabilities which net to $406.5 million, or $312.3 million net of cash retained by Cable ONE on the Distribution Date:

	As of
(in thousands)	July 1, 2015
Cash and cash equivalents	$	94,115
Accounts receivable, net	29,778
Other current assets	14,182
Total current assets	138,075
Property, plant and equipments, net	612,812
Goodwill, net	85,488
Indefinite-lived intangible assets, net	496,321
Amortized intangible assets, net	510
Deferred charges and other assets	22,541
Total Assets	$	1,355,747
Accounts payable and accrued liabilities	$	70,920
Income taxes payable	2,962
Deferred revenue	21,883
Short-term borrowings	2,500
Total current liabilities	98,265
Accrued compensation and related benefits	24,227
Other liabilities	57
Deferred income taxes	279,245
Long-term debt	547,500
Total Liabilities	$	949,294
Net assets divested in the Spin-Off	$	406,453

Discontinued Operations Cash Flows

Cash flows from Cable ONE are as follows:

	Three Months Ended					Nine Months Ended
	September 30					September 30
(in thousands)	2015			2014		2015			2014
Net Cash (Used in) Provided by Operating Activities	$	(4,468	)	$	59,863	$	111,665		$	187,153
Net Cash Provided by (Used in) Investing Activities	—			51,283		(74,416		)	(35,705		)