Business Segments (Tables)

9 Months Ended

Sep. 30, 2019

Segment Reporting Information [Line Items]

Summary of Segment Reporting Information, by Operating Segment

The following tables summarize the financial information related to each of the Company’s business segments:

	Three Months Ended
	March 31,			June 30,			September 30,
(in thousands)	2019			2019			2019
Operating Revenues
Education	$	372,454		$	367,763		$	357,319
Television broadcasting	108,223			116,628			115,161
Manufacturing	115,157			114,873			111,676
Healthcare	37,728			40,641			40,688
SocialCode	13,447			16,382			15,975
Other businesses	45,230			81,359			98,225
Corporate office	—			—			—
Intersegment elimination	(40		)	(44		)	(224		)
	$	692,199		$	737,602		$	738,820
Income (Loss) from Operations
Education	$	25,595		$	26,305		$	(7,161	)
Television broadcasting	35,540			44,494			36,813
Manufacturing	3,274			4,692			6,845
Healthcare	2,329			2,598			1,208
SocialCode	(4,018		)	(975		)	(378		)
Other businesses	(8,493		)	(5,913		)	(9,029		)
Corporate office	(14,224		)	(13,238		)	(12,030		)
	$	40,003		$	57,963		$	16,268
Equity in Earnings of Affiliates, Net	1,679			1,467			4,683
Interest Expense, Net	(5,725		)	(6,807		)	(5,302		)
Non-Operating Pension and Postretirement Benefit Income, Net	19,928			12,253			19,556
Gain on Marketable Equity Securities, Net	24,066			7,791			17,404
Other Income, Net	29,351			1,228			5,556
Income Before Income Taxes	$	109,302		$	73,895		$	58,165
Depreciation of Property, Plant and Equipment
Education	$	6,201		$	6,137		$	6,258
Television broadcasting	3,239			3,293			3,307
Manufacturing	2,433			2,384			2,671
Healthcare	610			607			566
SocialCode	152			384			356
Other businesses	648			837			1,974
Corporate office	240			242			219
	$	13,523		$	13,884		$	15,351
Amortization of Intangible Assets and Impairment of Long-Lived Assets
Education	$	3,567		$	4,070		$	3,944
Television broadcasting	1,408			1,408			1,408
Manufacturing	6,530			6,528			6,522
Healthcare	1,398			1,410			1,914
SocialCode	157			157			156
Other businesses	—			—			—
Corporate office	—			—			—
	$	13,060		$	13,573		$	13,944
Pension Service Cost
Education	$	2,664		$	2,522		$	2,603
Television broadcasting	731			780			762
Manufacturing	25			15			20
Healthcare	183			63			123
SocialCode	248			191			219
Other businesses	201			161			215
Corporate office	1,169			1,231			1,200
	$	5,221		$	4,963		$	5,142

	Three Months Ended
	March 31,			June 30,			September 30,			December 31,
(in thousands)	2018			2018			2018			2018
Operating Revenues
Education	$	375,499		$	370,005		$	358,601		$	346,910
Television broadcasting	108,802			114,086			130,014			152,647
Manufacturing	117,406			126,462			126,028			117,723
Healthcare	37,621			38,208			35,486			37,960
SocialCode	13,299			14,770			13,781			16,878
Other businesses	6,833			9,167			10,856			17,024
Corporate office	—			—			—			—
Intersegment elimination	(24		)	(21		)	—			(55		)
	$	659,436		$	672,677		$	674,766		$	689,087
Income (Loss) from Operations
Education	$	22,700		$	37,554		$	22,262		$	14,620
Television broadcasting	40,542			41,118			55,453			73,420
Manufacturing	8,628			8,665			5,146			6,412
Healthcare	(1,391		)	764			(8,702		)	928
SocialCode	(3,781		)	(1,742		)	5,124			(682		)
Other businesses	(8,542		)	(7,977		)	(5,657		)	(5,840		)
Corporate office	(13,942		)	(12,756		)	(12,887		)	(13,276		)
	$	44,214		$	65,626		$	60,739		$	75,582
Equity in Earnings of Affiliates, Net	2,579			931			9,537			1,426
Interest Expense, Net	(6,699		)	(15,264		)	(5,524		)	(5,062		)
Debt Extinguishment Costs	—			(11,378		)	—			—
Non-Operating Pension and Postretirement Benefit Income	21,386			23,041			22,214			53,900
(Loss) Gain on Marketable Equity Securities, Net	(14,102		)	(2,554		)	44,962			(44,149		)
Other Income (Loss), Net	9,187			2,333			3,142			(12,559		)
Income from Continuing Operations Before Income Taxes	$	56,565		$	62,735		$	135,070		$	69,138
Depreciation of Property, Plant and Equipment
Education	$	7,606		$	6,839		$	6,685		$	6,969
Television broadcasting	3,071			2,974			3,198			3,961
Manufacturing	2,451			2,331			2,333			2,400
Healthcare	653			647			648			629
SocialCode	233			200			187			177
Other businesses	375			375			345			428
Corporate office	253			253			252			249
	$	14,642		$	13,619		$	13,648		$	14,813
Amortization of Intangible Assets and Impairment of Long-lived Assets
Education	$	1,149		$	1,663		$	2,682		$	3,868
Television broadcasting	1,408			1,408			1,408			1,408
Manufacturing	5,936			5,935			6,345			6,530
Healthcare	1,808			1,809			9,839			1,399
SocialCode	83			584			104			157
Other businesses	—			—			—			—
Corporate office	—			—			—			—
	$	10,384		$	11,399		$	20,378		$	13,362
Pension Service Cost
Education	$	2,664		$	1,878		$	2,107		$	2,104
Television broadcasting	493			601			544			550
Manufacturing	17			19			18			18
Healthcare	122			165			143			143
SocialCode	156			205			181			181
Other businesses	116			154			147			161
Corporate office	1,372			1,295			1,333			1,334
	$	4,940		$	4,317		$	4,473		$	4,491

	Nine months ended						Year Ended
	September 30						December 31
(in thousands)	2019			2018			2018			2017
Operating Revenues
Education	$	1,097,536		$	1,104,105		$	1,451,015		$	1,516,776
Television broadcasting	340,012			352,902			505,549			409,916
Manufacturing	341,706			369,896			487,619			414,193
Healthcare	119,057			111,315			149,275			154,202
SocialCode	45,804			41,850			58,728			62,077
Other businesses	224,814			26,856			43,880			34,733
Corporate office	—			—			—			—
Intersegment elimination	(308		)	(45		)	(100		)	(51		)
	$	2,168,621		$	2,006,879		$	2,695,966		$	2,591,846
Income (Loss) from Operations
Education	$	44,739		$	82,516		$	97,136		$	77,687
Television broadcasting	116,847			137,113			210,533			139,258
Manufacturing	14,811			22,439			28,851			14,947
Healthcare	6,135			(9,329		)	(8,401		)	(2,569		)
SocialCode	(5,371		)	(399		)	(1,081		)	(3,674		)
Other businesses	(23,435		)	(22,176		)	(28,016		)	(30,536		)
Corporate office	(39,492		)	(39,585		)	(52,861		)	(58,710		)
	$	114,234		$	170,579		$	246,161		$	136,403
Equity in Earnings (Losses) of Affiliates, Net	7,829			13,047			14,473			(3,249		)
Interest Expense, Net	(17,834		)	(27,487		)	(32,549		)	(27,305		)
Debt Extinguishment Costs	—			(11,378		)	(11,378		)	—
Non-Operating Pension and Postretirement Benefit Income, Net	51,737			66,641			120,541			72,699
Gain (Loss) on Marketable Equity Securities, Net	49,261			28,306			(15,843		)	—
Other Income, Net	36,135			14,662			2,103			4,241
Income Before Income Taxes	$	241,362		$	254,370		$	323,508		$	182,789
Depreciation of Property, Plant and Equipment
Education	$	18,596		$	21,130		$	28,099		$	32,906
Television broadcasting	9,839			9,243			13,204			12,179
Manufacturing	7,488			7,115			9,515			9,173
Healthcare	1,783			1,948			2,577			4,583
SocialCode	892			620			797			1,004
Other businesses	3,459			1,095			1,523			1,546
Corporate office	701			758			1,007			1,118
	$	42,758		$	41,909		$	56,722		$	62,509
Amortization of Intangible Assets and Impairment of Goodwill and Other Long-Lived Assets
Education	$	11,581		$	5,494		$	9,362		$	5,162
Television broadcasting	4,224			4,224			5,632			6,349
Manufacturing	19,580			18,216			24,746			31,052
Healthcare	4,722			13,456			14,855			7,905
SocialCode	470			771			928			333
Other businesses	—			—			—			—
Corporate office	—			—			—			—
	$	40,577		$	42,161		$	55,523		$	50,801
Pension Service Cost
Education	$	7,789		$	6,649		$	8,753		$	9,720
Television broadcasting	2,273			1,638			2,188			1,942
Manufacturing	60			54			72			79
Healthcare	369			430			573			665
SocialCode	658			542			723			593
Other businesses	577			417			578			453
Corporate office	3,600			4,000			5,334			5,235
	$	15,326		$	13,730		$	18,221		$	18,687
Capital Expenditures
Education							$	54,159		$	27,520
Television broadcasting							27,013			16,802
Manufacturing							14,806			8,012
Healthcare							1,741			2,987
SocialCode							113			756
Other businesses							235			1,003
Corporate office							—			—
							$	98,067		$	57,080

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

	As of
(in thousands)	September 30, 2019		December 31, 2018
Identifiable Assets
Education	$	1,925,819	$	1,568,747
Television broadcasting	470,915		452,853
Manufacturing	577,244		593,111
Healthcare	132,068		108,596
SocialCode	238,253		213,394
Other businesses	333,720		20,608
Corporate office	71,501		162,971
	$	3,749,520	$	3,120,280
Investments in Marketable Equity Securities	535,564		496,390
Investments in Affiliates	163,986		143,813
Prepaid Pension Cost	1,038,676		1,003,558
Total Assets	$	5,487,746	$	4,764,041

Education [Member]

Segment Reporting Information [Line Items]

Summary of Segment Reporting Information, by Operating Segment

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

	Three Months Ended						Nine months ended
	September 30						September 30
(in thousands)	2019			2018			2019			2018
Operating Revenues
Kaplan international	$	178,169		$	167,668		$	552,505		$	535,553
Higher education	78,712			89,269			237,780			275,080
Test preparation	64,710			67,749			191,533			195,504
Professional (U.S.)	33,820			34,302			110,181			98,715
Kaplan corporate and other	2,450			143			7,121			870
Intersegment elimination	(542		)	(530		)	(1,584		)	(1,617		)
	$	357,319		$	358,601		$	1,097,536		$	1,104,105
Income (Loss) from Operations
Kaplan international	$	(14,226	)	$	8,375		$	35,596		$	52,966
Higher education	5,177			6,042			9,813			18,616
Test preparation	4,959			10,572			8,794			17,213
Professional (U.S.)	4,939			6,768			20,943			20,863
Kaplan corporate and other	(8,011		)	(9,452		)	(30,405		)	(27,110		)
Intersegment elimination	1			(43		)	(2		)	(32		)
	$	(7,161	)	$	22,262		$	44,739		$	82,516
Depreciation of Property, Plant and Equipment
Kaplan international	$	3,600		$	3,759		$	11,198		$	11,497
Higher education	840			915			2,066			4,047
Test preparation	774			1,033			2,358			2,984
Professional (U.S.)	978			859			2,802			2,171
Kaplan corporate and other	66			119			172			431
	$	6,258		$	6,685		$	18,596		$	21,130
Amortization of Intangible Assets	$	3,944		$	2,682		$	10,888		$	5,494
Impairment of Long-lived Assets	$	—		$	—		$	693		$	—
Pension Service Cost
Kaplan international	$	114		$	66		$	341		$	233
Higher education	1,136			1,050			3,401			3,260
Test preparation	847			577			2,534			2,035
Professional (U.S.)	340			291			1,017			871
Kaplan corporate and other	166			123			496			250
	$	2,603		$	2,107		$	7,789		$	6,649

Asset information for the Company’s education division is as follows:

	As of
(in thousands)	September 30, 2019		December 31, 2018
Identifiable assets
Kaplan international	$	1,336,238	$	1,101,040
Higher education	202,553		126,752
Test preparation	165,471		145,308
Professional (U.S.)	154,568		166,916
Kaplan corporate and other	66,989		28,731
	$	1,925,819	$	1,568,747