Discontinued Operations

9 Months Ended

Sep. 30, 2016

Discontinued Operations and Disposal Groups [Abstract]

Discontinued Operations

DISCONTINUED OPERATIONS

Cable ONE Spin-Off. On July 1, 2015 (the “Distribution Date”), the Company completed the spin-off of Cable One, Inc. (Cable ONE) as an independent, publicly traded company. The transaction was structured as a tax-free spin-off of Cable ONE to the stockholders of the Company as one share of Cable ONE common stock was distributed for every share of Class A and Class B common stock of Graham Holdings outstanding on the June 15, 2015, record date. Cable ONE is now an independent public company trading on the New York Stock Exchange under the symbol “CABO”. After the spin, the Company does not beneficially own any shares of Cable ONE common stock.

The results of operations of Cable ONE are included in the Company’s Condensed Consolidated Statements of Operations as income from discontinued operations, net of tax, for 2015. The Company did not reclassify its Statements of Cash Flows to reflect the various discontinued operations.

Cash flows from Cable ONE for the three and nine months ended September 30, 2015 are combined with the cash flows from operations within each of the categories presented. Cash flows from Cable ONE are as follows:

	Three Months Ended			Nine Months Ended
(in thousands)	September 30, 2015			September 30, 2015
Net Cash (Used in) Provided by Operating Activities	$	(4,468	)	$	111,665
Net Cash Used in Investing Activities	—			(74,416		)

Spin-Off Costs: One-time Spin-Off transaction and financing and related costs of $7.4 million in 2015 are included in discontinued operations, net of tax.

Other Discontinued Operations. 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 was sold by Kaplan in January of 2015 that resulted in a pre-tax loss of $0.7 million. The results of operations of the schools in China are included in the Company’s Condensed Consolidated Statements of Operations as income from discontinued operations, net of tax, for 2015.

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

	Three Months Ended		Nine Months Ended
(in thousands)	September 30, 2015		September 30, 2015
Operating revenues	$	—	$	397,404
Operating costs and expenses	1,662		(325,379		)
Operating income	1,662		72,025
Non-operating expense	—		(1,288		)
Income from discontinued operations	1,662		70,737
Provision for income taxes	1,283		27,783
Net Income from Discontinued Operations	379		42,954
Loss on sale of discontinued operations	—		(732		)
Provision for income taxes on disposition of discontinued operations	—		52
Income from Discontinued Operations, Net of Tax	$	379	$	42,170