Business Segments (Tables)

9 Months Ended

Sep. 30, 2020

Segment Reporting Information [Line Items]

Restructuring related costs across all businesses in 2020 were recorded as follows:


	Three Months Ended September 30, 2020
(in thousands)	Kaplan International		Higher Education		Test Preparation		Professional (U.S)		Kaplan Corporate		Total Education		Other Businesses		Total
Severance(1)	$	959	$	—	$	913	$	—	$	—	$	1,872	$	—	$	1,872




Impairment of other long-lived assets:
Lease right-of-use assets	—		—		1,710		—		—		1,710		—		1,710
Property, plant and equipment	—		—		206		—		—		206		—		206
Non-operating pension and postretirement benefit income, net	—		802		4,829		1,458		694		7,783		—		7,783
Total Restructuring Related Costs	$	959	$	802	$	7,658	$	1,458	$	694	$	11,571	$	—	$	11,571

	Nine Months Ended September 30, 2020
(in thousands)	Kaplan International		Higher Education		Test Preparation		Professional (U.S)		Kaplan Corporate		Total Education		Other Businesses		Total
Severance	$	2,183	$	—	$	913	$	—	$	—	$	3,096	$	—	$	3,096
Facility related costs:
Operating lease cost	2,418		3,442		2,740		556		—		9,156		—		9,156
Accelerated depreciation of property, plant and equipment	1,472		95		1,792		9		—		3,368		—		3,368
Total Restructuring Costs Included in Segment Results(1)	$	6,073	$	3,537	$	5,445	$	565	$	—	$	15,620	$	—	$	15,620
Impairment of other long-lived assets:
Lease right-of-use assets	3,790		2,062		1,953		1,955		—		9,760		1,405		11,165
Property, plant and equipment	1,199		174		206		597		—		2,176		86		2,262
Non-operating pension and postretirement benefit income, net	1,100		2,233		4,829		3,753		883		12,798		999		13,797
Total Restructuring Related Costs	$	12,162	$	8,006	$	12,433	$	6,870	$	883	$	40,354	$	2,490	$	42,844

____________

(1) These amounts are included in the segments’ Income (Loss) from Operations before Amortization of Intangible Assets and Impairment of Goodwill and Other Long-Lived Assets.

Summary of Segment Reporting Information, by Operating Segment


	Three months ended			Nine months ended
	September 30			September 30
(in thousands)		2020		2019		2020		2019
Operating Revenues
Education		$	302,467	$	357,319	$	992,020	$	1,097,536
Television broadcasting		133,828		115,161		350,038		340,012
Manufacturing		106,690		111,676		303,387		341,706
Healthcare		51,426		40,688		146,601		119,057
Other businesses		123,096		114,200		311,241		270,618
Corporate office		—		—		—		—
Intersegment elimination		(525)		(224)		(1,177)		(308)
		$	716,982	$	738,820	$	2,102,110	$	2,168,621
Income (Loss) from Operations before Amortization of Intangible Assets and Impairment of Goodwill and Other Long-Lived Assets
Education		$	9,584	$	(3,217)	$	45,022	$	56,320
Television broadcasting		54,105		38,221		116,229		121,071
Manufacturing		11,838		13,367		30,982		34,391
Healthcare		8,965		3,122		23,569		10,857
Other businesses		(15,443)		(9,251)		(54,795)		(28,336)
Corporate office		(12,739)		(12,030)		(34,331)		(39,492)
		$	56,310	$	30,212	$	126,676	$	154,811
Amortization of Intangible Assets and Impairment of Goodwill and Other Long-lived Assets
Education		$	6,251	$	3,944	$	24,743	$	11,581
Television broadcasting		1,360		1,408		4,081		4,224
Manufacturing		6,987		6,522		21,112		19,580
Healthcare		823		1,914		3,440		4,722
Other businesses		645		156		19,094		470
Corporate office		—		—		—		—
		$	16,066	$	13,944	$	72,470	$	40,577
Income (Loss) from Operations
Education		$	3,333	$	(7,161)	$	20,279	$	44,739
Television broadcasting		52,745		36,813		112,148		116,847
Manufacturing		4,851		6,845		9,870		14,811
Healthcare		8,142		1,208		20,129		6,135
Other businesses		(16,088)		(9,407)		(73,889)		(28,806)
Corporate office		(12,739)		(12,030)		(34,331)		(39,492)
		$	40,244	$	16,268	$	54,206	$	114,234
Equity in Earnings of Affiliates, Net		4,092		4,683		3,727		7,829
Interest Expense, Net		(6,357)		(5,302)		(19,307)		(17,834)
Non-Operating Pension and Postretirement Benefit Income, Net		10,489		19,556		41,028		51,737
Gain (Loss) on Marketable Equity Securities, Net		59,364		17,404		(1,139)		49,261
Other Income, Net		222		5,556		11,010		36,135
Income Before Income Taxes		$	108,054	$	58,165	$	89,525	$	241,362
Depreciation of Property, Plant and Equipment
Education		$	6,822	$	6,258	$	24,475	$	18,596
Television broadcasting		3,399		3,307		10,188		9,839
Manufacturing		2,557		2,671		7,610		7,488
Healthcare		318		566		1,351		1,783
Other businesses		5,208		2,330		13,946		4,351
Corporate office		177		219		528		701
		$	18,481	$	15,351	$	58,098	$	42,758
Pension Service Cost
Education		$	2,350	$	2,603	$	7,527	$	7,789
Television broadcasting		817		762		2,449		2,273
Manufacturing		318		20		1,107		60
Healthcare		136		123		407		369
Other businesses		410		434		1,276		1,235
Corporate office		1,426		1,200		4,278		3,600
		$	5,457	$	5,142	$	17,044	$	15,326

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


	As of
(in thousands)	September 30, 2020		December 31, 2019
Identifiable Assets
Education	$	1,880,694	$	2,032,425
Television broadcasting	451,660		463,689
Manufacturing	564,207		564,251
Healthcare	160,633		160,033
Other businesses	524,998		567,395
Corporate office	258,469		103,764
	$	3,840,661	$	3,891,557
Investments in Marketable Equity Securities	491,172		585,080
Investments in Affiliates	157,529		162,249
Prepaid Pension Cost	1,322,151		1,292,350
Total Assets	$	5,811,513	$	5,931,236

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)	2020		2019		2020		2019
Operating Revenues
Kaplan international	$	123,768	$	178,169	$	488,096	$	552,505
Higher education	83,841		78,712		243,831		237,780
Test preparation	59,737		64,710		153,687		191,533
Professional (U.S.)	32,831		33,820		99,954		110,181
Kaplan corporate and other	3,194		2,450		9,438		7,121
Intersegment elimination	(904)		(542)		(2,986)		(1,584)
	$	302,467	$	357,319	$	992,020	$	1,097,536

Income before Amortization of Intangible Assets and Impairment of Long-Lived Assets
Kaplan international	$	(13,759)	$	(14,226)	$	21,256	$	35,596
Higher education	6,853		5,177		21,883		9,813
Test preparation	13,348		4,959		(376)		8,794
Professional (U.S.)	5,721		4,939		13,225		20,943
Kaplan corporate and other	(2,579)		(4,067)		(10,971)		(18,824)
Intersegment elimination	—		1		5		(2)
	$	9,584	$	(3,217)	$	45,022	$	56,320
Amortization of Intangible Assets	$	4,335	$	3,944	$	12,807	$	10,888
Impairment of Long-lived Assets	$	1,916	$	—	$	11,936	$	693

Income (Loss) from Operations
Kaplan international	$	(13,759)	$	(14,226)	$	21,256	$	35,596
Higher education	6,853		5,177		21,883		9,813
Test preparation	13,348		4,959		(376)		8,794
Professional (U.S.)	5,721		4,939		13,225		20,943
Kaplan corporate and other	(8,830)		(8,011)		(35,714)		(30,405)
Intersegment elimination	—		1		5		(2)
	$	3,333	$	(7,161)	$	20,279	$	44,739
Depreciation of Property, Plant and Equipment
Kaplan international	$	4,585	$	3,600	$	14,782	$	11,198
Higher education	682		840		2,237		2,066
Test preparation	335		774		3,768		2,358
Professional (U.S.)	1,119		978		3,397		2,802
Kaplan corporate and other	101		66		291		172
	$	6,822	$	6,258	$	24,475	$	18,596

Pension Service Cost
Kaplan international	$	102	$	114	$	334	$	341
Higher education	973		1,136		3,113		3,401
Test preparation	748		847		2,394		2,534
Professional (U.S.)	238		340		761		1,017
Kaplan corporate and other	289		166		925		496
	$	2,350	$	2,603	$	7,527	$	7,789

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


	As of

(in thousands)	September 30, 2020		December 31, 2019
Identifiable assets
Kaplan international	$	1,332,098	$	1,455,122
Higher education	197,983		196,761
Test preparation	138,180		151,655
Professional (U.S.)	145,762		160,799
Kaplan corporate and other	66,671		68,088
	$	1,880,694	$	2,032,425