10-Q

UNITED STATES

SECURITIES AND EXCHANGE COMMISSION

WASHINGTON, DC 20549

FORM 10-Q

☒ Quarterly Report Pursuant to Section 13 or 15(d) of the Securities Exchange Act of 1934

For the Quarterly Period Ended June 30, 2021

or

☐ Transition Report Pursuant to Section 13 or 15(d) of the Securities Exchange Act of 1934

Commission File Number 001-06714

GRAHAM HOLDINGS COMPANY

(Exact name of registrant as specified in its charter)

Delaware	53-0182885
(State or other jurisdiction of incorporation or organization)	(I.R.S. Employer Identification No.)
1300 North 17th Street, Arlington, Virginia	22209
(Address of principal executive offices)	(Zip Code)

(703) 345-6300

(Registrant’s telephone number, including area code)

Securities Registered Pursuant to Section 12(b) of the Act:

Title of each class	Trading Symbol(s)	Name of each exchange on which registered
Class B Common Stock, par value $1.00 per share	GHC	New York Stock Exchange

Indicate by check mark whether the registrant (1) has filed all reports required to be filed by Section 13 or 15(d) of the Securities Exchange Act of 1934 during the preceding 12 months (or for such shorter period that the registrant was required to file such reports), and (2) has been subject to such filing requirements for the past 90 days.   Yes  ☒.    No  ☐.

Indicate by check mark whether the registrant has submitted electronically every Interactive Data File required to be submitted pursuant to Rule 405 of Regulation S-T (§232.405 of this chapter) during the preceding 12 months (or for such shorter period that the registrant was required to submit such files).  Yes  ☒.    No  ☐.  

Indicate by check mark whether the registrant is a large accelerated filer, an accelerated filer, a non-accelerated filer, a smaller reporting company, or an emerging growth company. See the definitions of “large accelerated filer,” “accelerated filer,” “smaller reporting company” and “emerging growth company” in Rule 12b-2 of the Exchange Act.

Large Accelerated Filer ☒ Accelerated
filer ☐ Non-accelerated
filer ☐ Smaller reporting
company ☐ Emerging growth
company ☐

If an emerging growth company, indicate by check mark if the registrant has elected not to use the extended transition period for complying with any new or revised financial accounting standards provided pursuant to Section 13(a) of the Exchange Act. ☐

Indicate by check mark whether the registrant is a shell company (as defined in Rule 12b-2 of the Exchange Act). Yes  ☐.    No  ☒.  

Shares outstanding at July 30, 2021:

Class A Common Stock – 964,001 Shares

Class B Common Stock – 4,037,461 Shares

GRAHAM HOLDINGS COMPANY

Index to Form 10-Q

PART I. FINANCIAL INFORMATION
Item 1.	Financial Statements
	Condensed Consolidated Statements of Operations	1
	Condensed Consolidated Statements of Comprehensive Income (Loss)	2
	Condensed Consolidated Balance Sheets	3
	Condensed Consolidated Statements of Cash Flows	4
	Condensed Consolidated Statements of Changes in Common Stockholders' Equity	5
	Notes to Condensed Consolidated Financial Statements	7
	Organization, Basis of Presentation and Recent Accounting Pronouncements	7
	Acquisitions and Dispositions of Businesses	7
	Investments	9
	Accounts Receivable, Accounts Payable and Accrued Liabilities	10
	Inventories, Contracts in Progress and Vehicle Floor Plan Payable	11
	Goodwill and Other Intangible Assets	11
	Debt	13
	Fair Value Measurements	14
	Income Taxes	15
	Revenue From Contracts With Customers	16
	Earnings (Loss) Per Share	17
	Pension and Postretirement Plans	18
	Other Non-Operating Income	19
	Accumulated Other Comprehensive Income (Loss)	20
	Contingencies	21
	Business Segments	21
Item 2.	Management’s Discussion and Analysis of Results of Operations and Financial Condition	26
Item 3.	Quantitative and Qualitative Disclosures about Market Risk	37
Item 4.	Controls and Procedures	37
PART II. OTHER INFORMATION
Item 6.	Exhibits	38
Signatures		39

PART I. FINANCIAL INFORMATION

Item 1. Financial Statements.

GRAHAM HOLDINGS COMPANY

CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS (UNAUDITED)

	Three Months Ended   June 30				Six Months Ended   June 30
(in thousands, except per share amounts)	2021		2020		2021		2020
Operating Revenues
Sales of services	$	511,037	$	483,595	$	994,706	$	1,000,232
Sales of goods	290,115		169,276		518,901		384,896
	801,152		652,871		1,513,607		1,385,128
Operating Costs and Expenses
Cost of services sold (exclusive of items shown below)	306,983		298,578		599,417		631,627
Cost of goods sold (exclusive of items shown below)	226,892		136,825		405,679		303,526
Selling, general and administrative	195,429		162,840		371,290		339,992
Depreciation of property, plant and equipment	16,600		22,913		33,145		39,617
Amortization of intangible assets	13,889		14,327		27,826		28,492
Impairment of goodwill and other long-lived assets	3,768		11,511		4,815		27,912
	763,561		646,994		1,442,172		1,371,166
Income from Operations	37,591		5,877		71,435		13,962
Equity in earnings (losses) of affiliates, net	1,776		1,182		15,204		(365)
Interest income	1,876		954		2,766		2,105
Interest expense	(7,353)		(7,377)		(15,801)		(15,055)
Non-operating pension and postretirement benefit income, net	25,216		12,136		54,003		30,539
Gain (loss) on marketable equity securities, net	83,698		39,890		162,912		(60,503)
Other income, net	16,122		8,100		22,442		10,788
Income (Loss) Before Income Taxes	158,926		60,762		312,961		(18,529)
Provision for (Benefit from) Income Taxes	43,000		41,900		84,400		(3,500)
Net Income (Loss)	115,926		18,862		228,561		(15,029)
Net (Income) Loss Attributable to Noncontrolling Interests	(568)		(8)		(753)		638
Net Income (Loss) Attributable to Graham Holdings Company Common Stockholders	$	115,358	$	18,854	$	227,808	$	(14,391)
Per Share Information Attributable to Graham Holdings Company Common Stockholders
Basic net income (loss) per common share	$	23.07	$	3.61	$	45.55	$	(2.77)
Basic average number of common shares outstanding	4,968		5,196		4,968		5,235
Diluted net income (loss) per common share	$	22.99	$	3.60	$	45.43	$	(2.77)
Diluted average number of common shares outstanding	4,985		5,201		4,981		5,235

See accompanying Notes to Condensed Consolidated Financial Statements.

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GRAHAM HOLDINGS COMPANY

CONDENSED CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME (LOSS) (UNAUDITED)

	Three Months Ended   June 30				Six Months Ended   June 30
(in thousands)	2021		2020		2021		2020
Net Income (Loss)	$	115,926	$	18,862	$	228,561	$	(15,029)
Other Comprehensive Income (Loss), Before Tax
Foreign currency translation adjustments:
Translation adjustments arising during the period	1,167		16,405		681		(20,971)
Pension and other postretirement plans:
Amortization of net prior service cost included in net income	792		668		1,584		1,339
Amortization of net actuarial (gain) loss included in net income	(924)		390		(3,353)		610
	(132)		1,058		(1,769)		1,949
Cash flow hedges gain (loss)	13		(143)		634		(1,721)
Other Comprehensive Income (Loss), Before Tax	1,048		17,320		(454)		(20,743)
Income tax expense (benefit) related to items of other comprehensive income (loss)	32		(252)		331		(132)
Other Comprehensive Income (Loss), Net of Tax	1,080		17,068		(123)		(20,875)
Comprehensive Income (Loss)	117,006		35,930		228,438		(35,904)
Comprehensive (income) loss attributable to noncontrolling interests	(568)		(8)		(753)		638
Total Comprehensive Income (Loss) Attributable to Graham Holdings Company	$	116,438	$	35,922	$	227,685	$	(35,266)

See accompanying Notes to Condensed Consolidated Financial Statements.

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GRAHAM HOLDINGS COMPANY

CONDENSED CONSOLIDATED BALANCE SHEETS

	As of
(in thousands)	June 30, 2021		December 31, 2020
	(Unaudited)
Assets
Current Assets
Cash and cash equivalents	$	114,802	$	413,991
Restricted cash	9,982		9,063
Investments in marketable equity securities and other investments	765,740		587,582
Accounts receivable, net	516,483		537,156
Inventories and contracts in progress	126,395		120,622
Prepaid expenses	82,633		75,523
Income taxes receivable	16,947		29,313
Other current assets	7,631		942
Total Current Assets	1,640,613		1,774,192
Property, Plant and Equipment, Net	373,471		378,286
Lease Right-of-Use Assets	444,082		462,560
Investments in Affiliates	164,203		155,777
Goodwill, Net	1,653,607		1,484,750
Indefinite-Lived Intangible Assets	121,417		120,437
Amortized Intangible Assets, Net	264,408		204,646
Prepaid Pension Cost	1,750,588		1,708,305
Deferred Income Taxes	7,124		8,396
Deferred Charges and Other Assets (includes $748 and $0 of restricted cash)	157,029		146,770
Total Assets	$	6,576,542	$	6,444,119
Liabilities and Equity
Current Liabilities
Accounts payable and accrued liabilities	$	512,409	$	520,236
Deferred revenue	284,013		331,021
Income taxes payable	8,236		5,140
Current portion of lease liabilities	86,143		86,797
Current portion of long-term debt	4,248		6,452
Dividends declared	7,553		—
Total Current Liabilities	902,602		949,646
Accrued Compensation and Related Benefits	203,296		201,918
Other Liabilities	32,511		48,768
Deferred Income Taxes	531,350		521,274
Mandatorily Redeemable Noncontrolling Interest	9,332		9,240
Lease Liabilities	407,740		428,849
Long-Term Debt	506,079		506,103
Total Liabilities	2,592,910		2,665,798
Redeemable Noncontrolling Interests	7,720		11,928
Preferred Stock	—		—
Common Stockholders’ Equity
Common stock	20,000		20,000
Capital in excess of par value	386,882		388,159
Retained earnings	7,009,971		6,804,822
Accumulated other comprehensive income, net of taxes
Cumulative foreign currency translation adjustment	10,435		9,754
Unrealized gain on pensions and other postretirement plans	593,996		595,287
Cash flow hedges	(1,240)		(1,727)
Cost of Class B common stock held in treasury	(4,051,958)		(4,056,993)
Total Common Stockholders’ Equity	3,968,086		3,759,302
Noncontrolling Interests	7,826		7,091
Total Equity	3,975,912		3,766,393
Total Liabilities and Equity	$	6,576,542	$	6,444,119

See accompanying Notes to Condensed Consolidated Financial Statements.

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GRAHAM HOLDINGS COMPANY

CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS (UNAUDITED)

	Six Months Ended   June 30
(in thousands)	2021		2020
Cash Flows from Operating Activities
Net Income (Loss)	$	228,561	$	(15,029)
Adjustments to reconcile net income (loss) to net cash provided by operating activities:
Depreciation, amortization and goodwill and other long-lived asset impairments	65,786		96,021
Amortization of lease right-of-use asset	36,774		50,954
Net pension benefit	(45,413)		(21,409)
(Gain) loss on marketable equity securities and cost method investments, net	(165,257)		60,509
Gain on disposition and write-down of businesses, property, plant and equipment and investments, net	(15,080)		(5,444)
Provision for doubtful trade receivables	2,506		7,241
Stock-based compensation expense, net	3,060		3,135
Foreign exchange gain	(680)		(3,220)
Equity in (earnings) losses of affiliates, net of distributions	(5,053)		4,263
Provision for (benefit from) deferred income taxes	52,856		(1,349)
Accretion expense and change in fair value of contingent consideration liabilities	(2,679)		—
Change in operating assets and liabilities:
Accounts receivable, net	38,541		164,314
Inventories	(4,971)		2,840
Accounts payable and accrued liabilities	(15,592)		(99,496)
Deferred revenue	(61,591)		(69,105)
Income taxes receivable	10,681		(6,434)
Lease liabilities	(41,655)		(43,697)
Other assets and other liabilities, net	(9,343)		(2,384)
Other	1,394		(359)
Net Cash Provided by Operating Activities	72,845		121,351
Cash Flows from Investing Activities
Investments in certain businesses, net of cash acquired	(272,428)		(20,080)
Purchases of marketable equity securities	(48,036)		—
Purchases of property, plant and equipment	(27,502)		(40,209)
Proceeds from sales of marketable equity securities	37,629		93,775
Investments in equity affiliates, cost method and other investments	(4,910)		(8,011)
Net proceeds from disposition of businesses, property, plant and equipment, and investments	4,735		862
Return of investment in equity affiliates	4		314
Net Cash (Used in) Provided by Investing Activities	(310,508)		26,651
Cash Flows from Financing Activities
Deferred payments of acquisitions	(30,866)		(5,010)
Dividends paid	(15,106)		(15,289)
Net payments on vehicle floor plan payable	(9,591)		(11,063)
Proceeds from bank overdrafts	4,433		9,135
Purchase of noncontrolling interest	(3,508)		—
Net payments under revolving credit facilities	(2,304)		—
Repayments of borrowings	(2,071)		(75,206)
Issuance of borrowings	121		76,984
Common shares repurchased	—		(62,905)
Proceeds from exercise of stock options	—		5,335
Other	(283)		—
Net Cash Used in Financing Activities	(59,175)		(78,019)
Effect of Currency Exchange Rate Change	(684)		(4,953)
Net (Decrease) Increase in Cash and Cash Equivalents and Restricted Cash	(297,522)		65,030
Beginning Cash and Cash Equivalents and Restricted Cash	423,054		214,044
Ending Cash and Cash Equivalents and Restricted Cash	$	125,532	$	279,074

See accompanying Notes to Condensed Consolidated Financial Statements.

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GRAHAM HOLDINGS COMPANY

CONDENSED CONSOLIDATED STATEMENTS OF CHANGES IN COMMON STOCKHOLDERS’ EQUITY (UNAUDITED)

(in thousands)	Common Stock		Capital in Excess of Par Value		Retained Earnings		Accumulated Other Comprehensive Income		Treasury Stock		Noncontrolling Interest		Total Equity		Redeemable Noncontrolling Interest
As of December 31, 2020	$	20,000	$	388,159	$	6,804,822	$	603,314	$	(4,056,993)	$	7,091	$	3,766,393	$	11,928
Net income for the period					112,635								112,635
Net income attributable to noncontrolling interests					(185)						185		—
Change in redemption value of redeemable noncontrolling interests			697								64		761		(634)
Distribution to noncontrolling interest											(126)		(126)
Dividends on common stock					(15,106)								(15,106)
Issuance of Class B common stock, net of restricted stock forfeitures			(5,188)						5,084				(104)
Amortization of unearned stock compensation and stock option expense			1,589										1,589
Other comprehensive loss, net of income taxes							(1,203)						(1,203)
Purchase of redeemable noncontrolling interest													—		(3,508)
As of March 31, 2021	$	20,000	$	385,257	$	6,902,166	$	602,111	$	(4,051,909)	$	7,214	$	3,864,839	$	7,786
Net income for the period					115,926								115,926
Net income attributable to noncontrolling interests					(699)						699		—
Net loss attributable to redeemable noncontrolling interests					131								131		(131)
Change in redemption value of redeemable noncontrolling interests											65		65		65
Distribution to noncontrolling interest											(152)		(152)
Dividends on common stock					(7,553)								(7,553)
Forfeiture of restricted stock awards, net of Class B common stock issuances			(47)						(49)				(96)
Amortization of unearned stock compensation and stock option expense			1,672										1,672
Other comprehensive income, net of income taxes							1,080						1,080
As of June 30, 2021	$	20,000	$	386,882	$	7,009,971	$	603,191	$	(4,051,958)	$	7,826	$	3,975,912	$	7,720

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(in thousands)	Common Stock		Capital in Excess of Par Value		Retained Earnings		Accumulated Other Comprehensive Income		Treasury Stock		Noncontrolling Interest		Total Equity		Redeemable Noncontrolling Interest
As of December 31, 2019	$	20,000	$	381,669	$	6,534,427	$	303,295	$	(3,920,152)	$	7,557	$	3,326,796	$	5,655
Net loss for the period					(33,891)								(33,891)
Net loss attributable to noncontrolling interests					772						(772)		—
Net income attributable to redeemable noncontrolling interests					(126)								(126)		126
Dividends on common stock					(15,289)								(15,289)
Repurchase of Class B common stock									(33,610)				(33,610)
Issuance of Class B common stock									5,335				5,335
Amortization of unearned stock compensation and stock option expense			1,568										1,568
Other comprehensive loss, net of income taxes							(37,943)						(37,943)
As of March 31, 2020	$	20,000	$	383,237	$	6,485,893	$	265,352	$	(3,948,427)	$	6,785	$	3,212,840	$	5,781
Net income for the period					18,862								18,862
Net loss attributable to noncontrolling interests					37						(37)		—
Acquisition of redeemable noncontrolling interest													—		6,005
Net income attributable to redeemable noncontrolling interests					(45)								(45)		45
Dividends on common stock					(7,581)								(7,581)
Repurchase of Class B common stock									(29,295)				(29,295)
Amortization of unearned stock compensation and stock option expense			1,567										1,567
Other comprehensive income, net of income taxes							17,068						17,068
As of June 30, 2020	$	20,000	$	384,804	$	6,497,166	$	282,420	$	(3,977,722)	$	6,748	$	3,213,416	$	11,831

See accompanying Notes to Condensed Consolidated Financial Statements.

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GRAHAM HOLDINGS COMPANY

NOTES TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS

(UNAUDITED)

1. ORGANIZATION, BASIS OF PRESENTATION AND RECENT ACCOUNTING PRONOUNCEMENTS

Graham Holdings Company (the Company), is a diversified education and media company. The Company’s Kaplan subsidiary provides a wide variety of educational services, both domestically and outside the United States (U.S.). The Company’s media operations comprise the ownership and operation of seven television broadcasting stations, several websites and print publications, podcast content and a marketing solutions provider. The Company’s other business operations include manufacturing, automotive dealerships, consumer internet brands, restaurants and entertainment venues, custom framing services and home health and hospice services.

Basis of Presentation – The accompanying condensed consolidated financial statements have been prepared in accordance with: (i) generally accepted accounting principles in the United States of America (GAAP) for interim financial information; (ii) the instructions to Form 10-Q; and (iii) the guidance of Rule 10-01 of Regulation S-X under the Securities and Exchange Act of 1934, as amended, for financial statements required to be filed with the Securities and Exchange Commission (SEC). They include the assets, liabilities, results of operations and cash flows of the Company, including its domestic and foreign subsidiaries that are more than 50% owned or otherwise controlled by the Company. As permitted under such rules, certain notes and other financial information normally required by GAAP have been condensed or omitted. Management believes the accompanying condensed consolidated financial statements reflect all normal and recurring adjustments necessary for a fair statement of the Company’s financial position, results of operations, and cash flows as of and for the periods presented herein. The Company’s results of operations for the three and six months ended June 30, 2021 and 2020 may not be indicative of the Company’s future results. These condensed consolidated financial statements are unaudited and should be read in conjunction with the Company’s audited consolidated financial statements and the notes thereto included in the Company’s Annual Report on Form 10-K for the fiscal year ended December 31, 2020.

The year-end condensed consolidated balance sheet data was derived from audited financial statements, but does not include all disclosures required by GAAP.

Use of Estimates in the Preparation of the Condensed Consolidated Financial Statements – The preparation of the condensed consolidated financial statements in conformity with GAAP requires management to make estimates and judgments that affect the amounts reported herein. Management bases its estimates and assumptions on historical experience and on various other factors that are believed to be reasonable under the circumstances. Due to the inherent uncertainty involved in making estimates, actual results reported in future periods may be affected by changes in those estimates.

The Company assessed certain accounting matters that generally require consideration of forecasted financial information, in context with the information reasonably available to the Company and the unknown future impacts of the novel coronavirus (COVID-19) pandemic as of June 30, 2021 and through the date of this filing. The accounting matters assessed included, but were not limited to, the Company’s carrying value of goodwill and other long-lived assets, allowance for doubtful accounts, inventory valuation and related reserves, fair value of financial assets, valuation allowances for tax assets and revenue recognition. Other than the other long-lived asset impairment charges (see Note 8), there were no other impacts to the Company’s condensed consolidated financial statements as of and for the six months ended June 30, 2021 resulting from our assessments. The Company’s assessments as of and for the six months ended June 30, 2020 resulted in goodwill, indefinite-lived asset and other long-lived asset impairment charges (see Note 6 and Note 8). The Company’s future assessment of the magnitude and duration of COVID-19, as well as other factors, could result in material impacts to the Company’s condensed consolidated financial statements in future reporting periods.

2. ACQUISITIONS AND DISPOSITIONS OF BUSINESSES

Acquisitions. On June 14, 2021, the Company acquired all of the outstanding common shares of Leaf Group Ltd. (Leaf) for $308.6 million in cash and the assumption of $9.2 million in liabilities related to their previous stock compensation plan, which will be paid in the future. Leaf is a consumer internet company that builds creator-driven brands in lifestyle and home and art design categories. The acquisition is expected to provide benefits in the future by diversifying the Company’s business operations and providing operating synergies with other business units. The Company includes Leaf in other businesses.

During 2020, the Company acquired three businesses: two in education and one in other businesses for $96.8 million in cash and contingent consideration. The assets and liabilities of the companies acquired were recorded at their estimated fair values at the date of acquisition.

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In the first three months of 2020, Kaplan acquired two small businesses; one in its supplemental education division and one in its international division.

In May 2020, the Company acquired an additional interest in Framebridge, Inc. for cash and contingent consideration that resulted in the Company obtaining control of the investee. Following the acquisition, the Company owns 93.4% of Framebridge. The Company previously accounted for Framebridge under the equity method, and included it in Investments in Affiliates on the Condensed Consolidated Balance Sheet (see Note 3). The contingent consideration is primarily based on Framebridge achieving revenue milestones within a specific time period. The fair value of the contingent consideration at the acquisition date was $50.6 million, determined using a Monte Carlo simulation. The fair value of the redeemable noncontrolling interest in Framebridge was $6.0 million as of the acquisition date, determined using a market approach. The minority shareholder has an option to put 20% of the minority shares annually starting in 2024. The acquisition is expected to provide benefits in the future by diversifying the Company’s business operations and is included in other businesses.

Acquisition-related costs for acquisitions that closed during the first six months of 2021 and 2020 were $1.4 million and $1.1 million, respectively, and were expensed as incurred. The aggregate purchase price of the 2021 and 2020 acquisitions was allocated as follows (2021 on a preliminary basis), based on acquisition date fair values to the following assets and liabilities:

	Purchase Price Allocation
	Six Months Ended		Year Ended
(in thousands)	June 30, 2021		December 31, 2020
Accounts receivable	$	16,080	$	745
Inventory	777		3,496
Property, plant and equipment	6,229		3,346
Lease right-of-use assets	7,744		6,580
Goodwill	167,098		73,951
Amortized intangible assets	88,000		14,589
Other assets	4,507		975
Deferred income taxes	40,850		15,958
Other liabilities	(49,797)		(14,917)
Current and noncurrent lease liabilities	(7,742)		(6,593)
Redeemable noncontrolling interest	—		(6,005)
Aggregate purchase price, net of cash acquired	$	273,746	$	92,125

The 2021 fair values recorded were based upon preliminary valuations and the estimates and assumptions used in such valuations are subject to change within the measurement period (up to one year from the acquisition date). The recording of deferred tax assets and liabilities, and the amounts of residual goodwill and other intangibles are not yet finalized. Goodwill is calculated as the excess of the consideration transferred over the net assets recognized and represents the estimated future economic benefits arising from other assets acquired that could not be individually identified and separately recognized. The goodwill recorded due to these acquisitions is attributable to the assembled workforces of the acquired companies and expected synergies. The Company expects to deduct $43.4 million and $3.2 million of goodwill for income tax purposes for the acquisitions completed in 2021 and 2020, respectively.

The acquired companies were consolidated into the Company’s financial statements starting on their respective acquisition dates. The following unaudited pro forma financial information presents the Company’s results as if the current year acquisitions had occurred at the beginning of 2020. The unaudited pro forma information also includes the 2020 acquisitions as if they occurred at the beginning of 2019:

	Three Months Ended   June 30				Six Months Ended   June 30
(in thousands)	2021		2020		2021		2020
Operating revenues	$	841,966	$	704,738	$	1,606,299	$	1,475,834
Net income (loss)	111,086		13,129		217,821		(36,427)

These pro forma results were based on estimates and assumptions, which the Company believes are reasonable, and include the historical results of operations of the acquired companies and adjustments for depreciation and amortization of identified assets and the effect of pre-acquisition transaction related expenses incurred by the Company and the acquired entities. The pro forma information does not include efficiencies, cost reductions and synergies expected to result from the acquisitions. They are not the results that would have been realized had these

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entities been part of the Company during the periods presented and are not necessarily indicative of the Company’s consolidated results of operations in future periods.

Sale of Businesses. In December 2020, the Company completed the sale of Megaphone which was included in other businesses.

Other Transactions. In March 2021, Hoover’s minority shareholders put the remaining outstanding shares to the Company, which had a redemption value of $3.5 million. Following the redemption, the Company owns 100% of Hoover.

3. INVESTMENTS

Money Market Investments. As of June 30, 2021 the Company had no money market investments, compared to $268.8 million at December 31, 2020, that are classified as cash and cash equivalents in the Company’s Condensed Consolidated Balance Sheets.

Investments in Marketable Equity Securities. Investments in marketable equity securities consist of the following:

	As of
	June 30, 2021		December 31, 2020
(in thousands)
Total cost	$	276,532	$	232,847
Gross unrealized gains	474,908		340,255
Total Fair Value	$	751,440	$	573,102

At June 30, 2021 and December 31, 2020, the Company owned 44,430 shares and 28,000 shares, respectively, in Markel Corporation (Markel) valued at $52.7 million and $28.9 million, respectively. The Co-Chief Executive Officer of Markel, Mr. Thomas S. Gayner, is a member of the Company’s Board of Directors. As of June 30, 2021, there was no marketable equity security holding that exceeded 5% of the Company’s total assets.

The Company purchased $48.0 million of marketable equity securities during the first six months of 2021. There were no purchases of marketable equity securities during the first six months of 2020.

During the first six months of 2021, the gross cumulative realized gains from the sales of marketable equity securities were $27.7 million. The total proceeds from such sales were $37.6 million. During the first six months of 2020, the gross cumulative realized gains from the sales of marketable equity securities were $23.0 million. The total proceeds from such sales were $93.8 million.

The net gain (loss) on marketable equity securities comprised the following:

	Three Months Ended   June 30				Six Months Ended   June 30
(in thousands)	2021		2020		2021		2020
Gain (loss) on marketable equity securities, net	$	83,698	$	39,890	$	162,912	$	(60,503)
Less: Net (gains) losses in earnings from marketable equity securities sold and donated	(8,161)		4,608		(8,161)		13,382
Net unrealized gains (losses) in earnings from marketable equity securities still held at the end of the period	$	75,537	$	44,498	$	154,751	$	(47,121)

Investments in Affiliates. As of June 30, 2021, the Company held an approximate 12% interest in Intersection Holdings, LLC, and in several other affiliates; Graham Healthcare Group (GHG) held a 40% interest in Residential Home Health Illinois, a 42.5% interest in Residential Hospice Illinois, a 40% interest in the joint venture formed between GHG and a Michigan hospital, and a 40% interest in the joint venture formed between GHG and Allegheny Health Network (AHN). For the three and six months ended June 30, 2021, the Company recorded $2.7 million and $5.2 million, respectively, in revenue for services provided to the affiliates of GHG. For the three and six months ended June 30, 2020, the Company recorded $2.2 million and $4.7 million, respectively, in revenue for services provided to the affiliates of GHG.

The Company had $41.6 million and $26.1 million in its investment account that represents cumulative undistributed income in its investments in affiliates as of June 30, 2021 and December 31, 2020, respectively.

In the first quarter of 2020, the Company recorded impairment charges of $3.6 million on two of its investments in affiliates as a result of the challenging economic environment for these businesses, of which $2.7 million related to the Company’s investment in Framebridge. It is reasonably possible that further COVID-19 disruptions could result in additional impairment charges related to the Company’s investments in affiliates should the impact of COVID-19

9

not dissipate or have a worsening adverse impact on our affiliates in future periods. The Company records its share of the earnings or losses of its affiliates from their most recent available financial statements. In some instances, the reporting period of the affiliates’ financial statements lags the Company’s financial reporting period, but such lag is never more than three months. It is possible that the Company’s results of operations for the six months ended June 30, 2021 does not capture the impact of the COVID-19 pandemic on the earnings or losses of the affiliates whose financial results are recorded on a lag basis.

In May 2020, the Company made an additional investment in Framebridge (see Note 2) that resulted in the Company obtaining control of the investee. The results of operations, cash flows, assets and liabilities of Framebridge are included in the condensed consolidated financial statements of the Company from the date of the acquisition. Timothy J. O’Shaughnessy, President and Chief Executive Officer of Graham Holdings Company, was a personal investor in Framebridge and served as Chairman of the Board prior to the acquisition of the additional interest. The Company acquired Mr. O’Shaughnessy’s interest under the same terms as the other Framebridge investors.

Additionally, Kaplan International Holdings Limited (KIHL) held a 45% interest in a joint venture formed with York University. KIHL loaned the joint venture £22 million, which loan is repayable over 25 years at an interest rate of 7% and guaranteed by the University of York. The loan is repayable by December 2041.

Cost Method Investments. The Company held investments without readily determinable fair values in a number of equity securities that are accounted for as cost method investments, which are recorded at cost, less impairment, and adjusted for observable price changes for identical or similar investments of the same issuer. The carrying value of these investments was $45.1 million and $35.7 million as of June 30, 2021 and December 31, 2020, respectively. During the three and six months ended June 30, 2021, the Company recorded gains of $7.8 million and $10.5 million, respectively, to those equity securities based on observable transactions. During the three and six months ended June 30, 2020, the Company recorded gains of $2.6 million to those equity securities based on observable transactions. During the first six months of 2020, the Company recorded impairment losses of $2.6 million to those equity securities.

4. ACCOUNTS RECEIVABLE, ACCOUNTS PAYABLE AND ACCRUED LIABILITIES

Accounts receivable consist of the following:

	As of
	June 30, 2021		December 31, 2020
(in thousands)
Receivables from contracts with customers, less estimated credit losses of $20,445 and $21,494	$	496,676	$	519,577
Other receivables	19,807		17,579
	$	516,483	$	537,156

Credit loss expense was $1.4 million and $4.8 million for the three months ended June 30, 2021 and 2020, respectively. Credit loss expense was $2.5 million and $7.2 million for the six months ended June 30, 2021 and 2020, respectively.

Accounts payable and accrued liabilities consist of the following:

	As of
	June 30, 2021		December 31, 2020
(in thousands)
Accounts payable	$	116,607	$	106,215
Accrued compensation and related benefits	139,125		135,493
Other accrued liabilities	256,677		278,528
	$	512,409	$	520,236

Cash overdrafts of $6.6 million and $2.1 million are included in accounts payable as of June 30, 2021 and December 31, 2020, respectively.

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5. INVENTORIES, CONTRACTS IN PROGRESS AND VEHICLE FLOOR PLAN PAYABLE

Inventories and contracts in progress consist of the following:

	As of
	June 30, 2021		December 31, 2020
(in thousands)
Raw materials	$	47,633	$	45,382
Work-in-process	15,675		10,402
Finished goods	62,825		64,061
Contracts in progress	262		777
	$	126,395	$	120,622

The Company finances new and used vehicle inventory through a standardized floor plan facility (the “floor plan facility”) with Truist Bank. The vehicle floor plan facility bears interest at variable rates that are based on LIBOR plus 1.15% per annum. The weighted average interest rate for the floor plan facility was 1.2% and 1.6% for the three months ended June 30, 2021 and 2020, respectively. The weighted average interest rate for the floor plan facility was 1.2% and 2.2% for the six months ended June 30, 2021 and 2020, respectively. As of June 30, 2021, the aggregate capacity under the floor plan facility was $50 million, of which $16.4 million had been utilized, and is included in accounts payable and accrued liabilities in the Condensed Consolidated Balance Sheet. Changes in the vehicle floor plan payable are reported as cash flows from financing activities in the Condensed Consolidated Statements of Cash Flows.

The floor plan facility is collateralized by vehicle inventory and other assets of the relevant dealership subsidiary, and contains a number of covenants, including, among others, covenants restricting the dealership subsidiary with respect to the creation of liens and changes in ownership, officers and key management personnel. The Company was in compliance with all of these restrictive covenants as of June 30, 2021.

The floor plan interest expense related to the vehicle floor plan arrangements is offset by amounts received from manufacturers in the form of floor plan assistance capitalized in inventory and recorded against cost of goods sold in the Condensed Consolidated Statements of Operations when the associated inventory is sold. For the three months ended June 30, 2021 and 2020, the Company recognized a reduction in cost of goods sold of $0.8 million and $0.5 million, respectively, related to manufacturer floor plan assistance. For the six months ended June 30, 2021 and 2020, the Company recognized a reduction in cost of goods sold of $1.4 million and $0.9 million, respectively, related to manufacturer floor plan assistance.

6. GOODWILL AND OTHER INTANGIBLE ASSETS

In the first quarter of 2020, as a result of the uncertainty and challenging operating environment created by the COVID-19 pandemic, the Company performed an interim review of the goodwill, indefinite-lived intangibles and other long-lived assets of the Clyde’s Restaurant Group (CRG) and automotive dealership reporting units and asset groups. As a result of the impairment reviews, the Company recorded a $9.7 million goodwill and indefinite-lived intangible asset impairment charge at CRG and a $6.7 million indefinite-lived intangible asset impairment charge at the auto dealerships. The Company estimated the fair value of the reporting units and indefinite-lived intangible assets by utilizing a discounted cash flow model. The carrying value of the CRG reporting unit and the indefinite-lived intangible assets exceeded the estimated fair value, resulting in a goodwill and indefinite-lived intangible asset impairment charge for the amount by which the carrying value exceeded the estimated fair value. CRG and the automotive dealerships are included in other businesses. Additional COVID-19 disruptions could result in future adverse changes in projections for future operating results or other key assumptions, such as projected revenue, profit margin, capital expenditures or cash flows associated with fair value estimates and could lead to additional future impairments, which could be material.

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Amortization of intangible assets for the three months ended June 30, 2021 and 2020, was $13.9 million and $14.3 million, respectively. Amortization of intangible assets for the six months ended June 30, 2021 and 2020, was $27.8 million and $28.5 million, respectively. Amortization of intangible assets is estimated to be approximately $32 million for the remainder of 2021, $60 million in 2022, $51 million in 2023, $40 million in 2024, $33 million in 2025 and $48 million thereafter. The changes in the carrying amount of goodwill, by segment, were as follows:

(in thousands)	Education		Television Broadcasting		Manufacturing		Healthcare		Other Businesses		Total
Balance as of December 31, 2020
Goodwill	$	1,183,379	$	190,815	$	234,993	$	98,421	$	130,472	$	1,838,080
Accumulated impairment losses	(331,151)		—		(7,616)		—		(14,563)		(353,330)
	852,228		190,815		227,377		98,421		115,909		1,484,750
Acquisitions	—		—		—		—		167,098		167,098
Foreign currency exchange rate changes	1,759		—		—		—		—		1,759
Balance as of June 30, 2021
Goodwill	1,185,138		190,815		234,993		98,421		297,570		2,006,937
Accumulated impairment losses	(331,151)		—		(7,616)		—		(14,563)		(353,330)
	$	853,987	$	190,815	$	227,377	$	98,421	$	283,007	$	1,653,607

The changes in carrying amount of goodwill at the Company’s education division were as follows:

(in thousands)	Kaplan International		Higher Education		Supplemental Education		Total
Balance as of December 31, 2020
Goodwill	$	634,749	$	174,564	$	374,066	$	1,183,379
Accumulated impairment losses	—		(111,324)		(219,827)		(331,151)
	634,749		63,240		154,239		852,228
Foreign currency exchange rate changes	1,696		—		63		1,759
Balance as of June 30, 2021
Goodwill	636,445		174,564		374,129		1,185,138
Accumulated impairment losses	—		(111,324)		(219,827)		(331,151)
	$	636,445	$	63,240	$	154,302	$	853,987

Other intangible assets consist of the following:

		As of June 30, 2021						As of December 31, 2020
(in thousands)	Useful Life Range	Gross Carrying Amount		Accumulated Amortization		Net Carrying Amount		Gross Carrying Amount		Accumulated Amortization		Net  Carrying Amount
Amortized Intangible Assets
Student and customer relationships	2–10 years	$	323,848	$	193,680	$	130,168	$	294,077	$	178,075	$	116,002
Trade names and trademarks	2–10 years	160,650		60,987		99,663		109,809		54,766		55,043
Network affiliation agreements	10 years	17,400		7,757		9,643		17,400		6,888		10,512
Databases and technology	3–6 years	36,761		23,148		13,613		34,864		19,924		14,940
Noncompete agreements	2–5 years	1,000		989		11		1,000		937		63
Other	1–8 years	29,800		18,490		11,310		24,800		16,714		8,086
		$	569,459	$	305,051	$	264,408	$	481,950	$	277,304	$	204,646
Indefinite-Lived Intangible Assets
Trade names and trademarks		$	88,409					$	87,429
Franchise agreements		21,858						21,858
FCC licenses		11,000						11,000
Licensure and accreditation		150						150
		$	121,417					$	120,437

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7. DEBT

The Company’s borrowings consist of the following:

	As of
	June 30, 2021		December 31, 2020
(in thousands)
5.75% unsecured notes due June 1, 2026 (1)	$	396,468	$	396,112
Revolving credit facility	76,181		74,686
Commercial note	23,750		25,250
Pinnacle Bank term loan	10,242		10,692
Pinnacle Bank line of credit	—		2,295
Other indebtedness	3,686		3,520
Total Debt	$	510,327	$	512,555
Less: current portion	(4,248)		(6,452)
Total Long-Term Debt	$	506,079	$	506,103

____________

(1)     The carrying value is net of $3.5 million and $3.9 million of unamortized debt issuance costs as of June 30, 2021 and December 31, 2020, respectively.

The outstanding balance on the Company’s revolving credit facility was £55 million as of June 30, 2021 with interest payable at the 3 month GBP LIBOR plus 1.50%. The Company’s other indebtedness at June 30, 2021 and December 31, 2020 is at interest rates of 0% to 16% and matures between 2023 and 2030.

The Company is in compliance with all financial covenants as of June 30, 2021.

During the three months ended June 30, 2021 and 2020, the Company had average borrowings outstanding of approximately $525.5 million and $510.5 million, respectively, at average annual interest rates of approximately 4.9% and 5.1%, respectively. During the three months ended June 30, 2021 and 2020, the Company incurred net interest expense of $5.5 million and $6.4 million, respectively.

During the six months ended June 30, 2021 and 2020, the Company had average borrowings outstanding of approximately $520.0 million and $511.2 million, respectively, at average annual interest rates of approximately 5.0% and 5.1%, respectively. During each of the six months ended June 30, 2021 and 2020, the Company incurred net interest expense of $13.0 million.

During the three and six months ended June 30, 2021, the Company recorded interest income of $1.0 million and net interest expense of $0.1 million, respectively, to adjust the fair value of the mandatorily redeemable noncontrolling interest. The fair value of the mandatorily redeemable noncontrolling interest was based on the fair value of the underlying subsidiaries owned by GHC One, after taking into account any debt and other noncontrolling interests of its subsidiary investments. The fair value of the owned subsidiaries is determined by reference to either a discounted cash flow or EBITDA multiple, which approximates fair value (Level 3 fair value assessment).

At June 30, 2021 and December 31, 2020, the fair value of the Company’s 5.75% unsecured notes, based on quoted market prices (Level 2 fair value assessment), totaled $418.4 million and $421.7 million, respectively, compared with the carrying amount of $396.5 million and $396.1 million, respectively. The carrying value of the Company’s other unsecured debt at June 30, 2021 and December 31, 2020 approximates fair value.

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8. FAIR VALUE MEASUREMENTS

The Company’s financial assets and liabilities measured at fair value on a recurring basis were as follows:

	As of June 30, 2021
(in thousands)	Level 1		Level 2		Level 3		Total
Assets
Marketable equity securities (1)	$	751,440	$	—	$	—	$	751,440
Other current investments (2)	7,212		7,088		—		14,300
Total Financial Assets	$	758,652	$	7,088	$	—	$	765,740
Liabilities
Deferred compensation plan liabilities (3)	$	—	$	30,033	$	—	$	30,033
Contingent consideration liabilities (4)	—		—		14,693		14,693
Interest rate swap (5)	—		1,704		—		1,704
Mandatorily redeemable noncontrolling interest (6)	—		—		9,332		9,332
Total Financial Liabilities	$	—	$	31,737	$	24,025	$	55,762

	As of December 31, 2020
(in thousands)	Level 1		Level 2		Level 3		Total
Assets
Money market investments (7)	$	—	$	268,841	$	—	$	268,841
Marketable equity securities (1)	573,102		—		—		573,102
Other current investments (2)	10,397		4,083		—		14,480
Total Financial Assets	$	583,499	$	272,924	$	—	$	856,423
Liabilities
Deferred compensation plan liabilities (3)	$	—	$	31,178	$	—	$	31,178
Contingent consideration liabilities (4)	—		—		37,174		37,174
Interest rate swap (5)	—		2,342		—		2,342
Foreign exchange swap (8)	—		259		—		259
Mandatorily redeemable noncontrolling interest (6)	—		—		9,240		9,240
Total Financial Liabilities	$	—	$	33,779	$	46,414	$	80,193

____________

(1)	The Company’s investments in marketable equity securities are held in common shares of U.S. and Canadian corporations that are actively traded on U.S. and Canadian stock exchanges. Price quotes for these shares are readily available.
(2)	Includes U.S. Government Securities, corporate bonds, mutual funds and time deposits. These investments are valued using a market approach based on the quoted market prices of the security or inputs that include quoted market prices for similar instruments and are classified as either Level 1 or Level 2 in the fair value hierarchy.
(3)	Includes Graham Holdings Company’s Deferred Compensation Plan and supplemental savings plan benefits under the Graham Holdings Company’s Supplemental Executive Retirement Plan, which are included in accrued compensation and related benefits. These plans measure the market value of a participant’s balance in a notional investment account that is comprised primarily of mutual funds, which are based on observable market prices. However, since the deferred compensation obligations are not exchanged in an active market, they are classified as Level 2 in the fair value hierarchy. Realized and unrealized gains (losses) on deferred compensation are included in operating income.
(4)	Included in Accounts payable and accrued liabilities and Other Liabilities. The Company determined the fair value of the contingent consideration liabilities using either a Monte Carlo simulation or probability-weighted analysis depending on the type of target included in the contingent consideration requirements (revenue, EBITDA, client retention). All analyses included estimated financial projections for the acquired businesses and acquisition-specific discount rates.
(5)	Included in Other Liabilities. The Company utilized a market approach model using the notional amount of the interest rate swap multiplied by the observable inputs of time to maturity and market interest rates.
(6)	The fair value of the mandatorily redeemable noncontrolling interest is based on the fair value of the underlying subsidiaries owned by GHC One, after taking into account any debt and other noncontrolling interests of its subsidiary investments. The fair value of the owned subsidiaries is determined using enterprise value analyses which include an equal weighing between guideline public company and discounted cash flow analyses.
(7)	The Company’s money market investments are included in cash and cash equivalents and the value considers the liquidity of the counterparty.
(8)	Included in Accounts payable and accrued liabilities, and valued based on a valuation model that calculates the differential between the contract price and the market-based forward rate.

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The following table provides a reconciliation of changes in the Company’s financial liabilities measured at fair value on a recurring basis, using Level 3 inputs:

(in thousands)	Contingent consideration liabilities		Mandatorily redeemable noncontrolling interest
As of December 31, 2020	$	37,174	$	9,240
Changes in fair value (1)	(3,720)		96
Capital contributions	—		37
Accretion of value included in net income (1)	1,041		—
Settlements or distributions	(19,836)		(41)
Foreign currency exchange rate changes	34		—
As of June 30, 2021	$	14,693	$	9,332

____________

(1) Changes in fair value and accretion of value of contingent consideration liabilities are included in Selling, general and administrative expenses and the changes in fair value of mandatorily redeemable noncontrolling interest is included in Interest income and Interest expense in the Company’s Condensed Consolidated Statements of Operations.

During the three and six months ended June 30, 2021, the Company recorded other long-lived asset impairment charges of $3.8 million and $4.8 million, respectively. During the three and six months ended June 30, 2020, the Company recorded other long-lived asset impairment charges of $11.5 million (see Note 16). The remeasurement of the other long-lived assets is classified as a Level 3 fair value assessment due to the significance of unobservable inputs developed in the determination of the fair value. The Company used a discounted cash flow model to determine the estimated fair value of the other long-lived assets. A market value approach was also utilized to supplement the discounted cash flow model. The Company made estimates and assumptions regarding future cash flows, discount rates, and market values.

During the first quarter of 2020, the Company recorded goodwill and indefinite-lived intangible asset impairment charges of $16.4 million (see Note 6). The remeasurement of the goodwill and indefinite-lived intangible assets is classified as a Level 3 fair value assessment due to the significance of unobservable inputs developed in the determination of the fair value. The Company used a discounted cash flow model to determine the estimated fair value of the reporting unit and indefinite-lived intangible assets. A market value approach was also utilized to supplement the discounted cash flow model. The Company made estimates and assumptions regarding future cash flows, royalty rates, discount rates, market values, and long-term growth rates.

During the three and six months ended June 30, 2021, the Company recorded gains of $7.8 million and $10.5 million, respectively, to equity securities that are accounted for as cost method investments based on observable transactions for identical or similar investments of the same issuer. During the three and six months ended June 30, 2020, the Company recorded a gain of $2.6 million to an equity security that is accounted for as a cost method investment based on observable transactions for identical or similar investments of the same issuer. During the six months ended June 30, 2020, the Company recorded impairment losses of $2.6 million to equity securities that are accounted for as cost method investments.

During the first quarter of 2020, the Company recorded impairment charges of $3.6 million on two of its investments in affiliates.

9. INCOME TAXES

On July 1, 2015 (the Distribution Date), the Company completed the spin-off of 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. Since July 1, 2015, Cable One has been an independent public company trading on the New York Stock Exchange under the symbol “CABO”. In connection with the Coronavirus Aid, Relief and Economic Security (CARES) Act, Cable One has the ability to carryback its 2019 taxable losses to the tax period from January 1, 2015 to June 30, 2015, the period in which Cable One was included in the Company’s 2015 tax return. As a result, the Company amended its 2015 tax returns in order to accommodate Cable One's request to carryback its 2019 taxable losses. The Company expects that this action will have no impact on the results or the financial position of the Company. To reflect the expected refund due to Cable One, the Company has included an estimated $15.9 million current income tax receivable and a corresponding current liability to Cable One on its balance sheet as of June 30, 2021.

The Company's effective tax rate for the first six months of 2021 and 2020 was 27.0% and 18.9%, respectively. The Company’s effective tax rate for the first quarter of 2020 was 57.3% and the effective tax rate for the second quarter of 2020 was 69.0%. The effective tax rates for interim periods is generally based on the Company’s estimated effective tax rate for the fiscal year. The Company’s estimated tax rate for 2020 included the adverse impacts of the COVID-19 pandemic, the CARES Act, and losses on marketable equity securities on the Company’s estimated pre-

15

tax income for 2020, resulting in a higher overall estimated tax rate, as permanent differences and increased valuation allowances in certain jurisdictions have a larger impact on the overall estimated effective tax rate.

10. REVENUE FROM CONTRACTS WITH CUSTOMERS

The Company generated 78% and 77% of its revenue from U.S. domestic sales for the three and six months ended June 30, 2021, respectively. The remaining 22% and 23% of revenue was generated from non-U.S. sales for the three and six months ended June 30, 2021, respectively. For the three and six months ended June 30, 2020, 75% of revenue was from U.S. domestic sales and the remaining 25% of revenue was generated from non-U.S. sales.

For the three and six months ended June 30, 2021, the Company recognized 66% and 68% of its revenue over time as control of the services and goods transferred to the customer, and the remaining 34% and 32% at a point in time, when the customer obtained control of the promised goods. For the three and six months ended June 30, 2020, the Company recognized 76% and 74% of its revenue over time, and the remaining 24% and 26% at a point in time.

In the second quarter of 2020, GHG received $7.4 million under the CARES Act as a general distribution from the Provider Relief Fund to provide relief for lost revenues and expenses incurred in connection with COVID-19. The healthcare revenues for the three and six months ended June 30, 2020 includes $5.5 million for lost revenues related to COVID-19.

Contract Assets. As of June 30, 2021, the Company recognized a contract asset of $11.0 million related to a contract at a Kaplan International business, which is included in Deferred Charges and Other Assets. The Company expects to recognize an additional $7.0 million related to this performance obligation within the next year. As of December 31, 2020, the contract asset was $8.7 million.

Deferred Revenue. The Company records deferred revenue when cash payments are received or due in advance of the Company’s performance, including amounts which are refundable. The following table presents the change in the Company’s deferred revenue balance:

	As of
	June 30, 2021		December 31, 2020		%
(in thousands)					Change
Deferred revenue	$	287,706	$	343,322	(16)

In April 2020, GHG received $31.5 million under the expanded Medicare Accelerated and Advanced Payment Program modified by the CARES Act as a result of COVID-19. The Department of Health and Human Services started to recoup this advance 365 days after the payment was issued and for the three and six months ended June 30, 2021, $5.0 million of the balance was recognized in revenue for claims submitted for eligible services. The remaining amount is included in the current deferred revenue balance on the Condensed Consolidated Balance Sheet as of June 30, 2021. As of December 31, 2020, the $31.5 million balance was included in the current and noncurrent deferred revenue balances on the Condensed Consolidated Balance Sheet.

The majority of the change in deferred revenue balance is related to the cyclical nature of services in the Kaplan international division. During the six months ended June 30, 2021, the Company recognized $226.4 million related to the Company’s deferred revenue balance as of December 31, 2020.

Revenue allocated to remaining performance obligations represents deferred revenue amounts that will be recognized as revenue in future periods. As of June 30, 2021, the deferred revenue balance related to certain medical and nursing qualifications with an original contract length greater than twelve months at Kaplan Supplemental Education was $8.0 million. Kaplan Supplemental Education expects to recognize 72% of this revenue over the next twelve months and the remainder thereafter.

Costs to Obtain a Contract. The following table presents changes in the Company’s costs to obtain a contract asset:

(in thousands)	Balance at Beginning of Period		Costs associated with new contracts		Less: Costs amortized during the period		Other		Balance at End of Period
2021	$	24,363	$	16,692	$	(27,192)	$	104	$	13,967

Other activity includes currency translation adjustments for the six months ended June 30, 2021.

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11. EARNINGS (LOSS) PER SHARE

The Company’s unvested restricted stock awards contain nonforfeitable rights to dividends and, therefore, are considered participating securities for purposes of computing earnings per share pursuant to the two-class method. The diluted earnings per share computed under the two-class method is lower than the diluted earnings per share computed under the treasury stock method, resulting in the presentation of the lower amount in diluted earnings per share. The computation of the earnings per share under the two-class method excludes the income attributable to the unvested restricted stock awards from the numerator and excludes the dilutive impact of those underlying shares from the denominator.

The following reflects the Company’s net income (loss) and share data used in the basic and diluted earnings (loss) per share computations using the two-class method:

	Three Months Ended   June 30						Six Months Ended   June 30
(in thousands, except per share amounts)	2021			2020			2021			2020
Numerator:
Numerator for basic earnings (loss) per share:
Net income (loss) attributable to Graham Holdings Company common stockholders	$	115,358		$	18,854		$	227,808		$	(14,391)
Less: Dividends paid-common stock outstanding and unvested restricted shares	(7,553)			(7,581)			(22,659)			(22,870)
Undistributed earnings (loss)	107,805			11,273			205,149			(37,261)
Percent allocated to common stockholders (1)	99.34		%	99.44		%	99.34		%	100.00		%
	107,089			11,210			203,786			(37,261)
Add: Dividends paid-common stock outstanding	7,503			7,539			22,508			22,745
Numerator for basic earnings (loss) per share	$	114,592		$	18,749		$	226,294		$	(14,516)
Add: Additional undistributed earnings due to dilutive stock options	2			—			4			—
Numerator for diluted earnings (loss) per share	$	114,594		$	18,749		$	226,298		$	(14,516)
Denominator:
Denominator for basic earnings (loss) per share:
Weighted average shares outstanding	4,968			5,196			4,968			5,235
Add: Effect of dilutive stock options	17			5			13			—
Denominator for diluted earnings (loss) per share	4,985			5,201			4,981			5,235
Graham Holdings Company Common Stockholders:
Basic earnings (loss) per share	$	23.07		$	3.61		$	45.55		$	(2.77)
Diluted earnings (loss) per share	$	22.99		$	3.60		$	45.43		$	(2.77)

_______

(1) Percent of undistributed losses allocated to common stockholders was 100% in the first six months of 2020 as participating securities are not contractually obligated to share in losses.

Diluted earnings (loss) per share excludes the following weighted average potential common shares, as the effect would be antidilutive, as computed under the treasury stock method:

	Three Months Ended   June 30		Six Months Ended   June 30
(in thousands)	2021	2020	2021	2020
Weighted average restricted stock	13	10	10	10
Weighted average stock options	—	—	—	17

The diluted earnings (loss) per share amounts for the three and six months ended June 30, 2021 and June 30, 2020 exclude the effects of 104,000 stock options outstanding, as their inclusion would have been antidilutive due to a market condition.

In the three and six months ended June 30, 2021, the Company declared regular dividends totaling $1.51 and $4.53 per common share, respectively. In the three and six months ended June 30, 2020, the Company declared regular dividends totaling $1.45 and $4.35 per common share, respectively.

17

12. PENSION AND POSTRETIREMENT PLANS

Defined Benefit Plans. The total benefit arising from the Company’s defined benefit pension plans consists of the following components:

	Three Months Ended   June 30				Six Months Ended   June 30
(in thousands)	2021		2020		2021		2020
Service cost	$	5,877	$	5,804	$	11,479	$	11,587
Interest cost	6,754		8,140		13,408		16,309
Expected return on assets	(33,702)		(28,290)		(68,278)		(56,734)
Amortization of prior service cost	712		707		1,423		1,415
Recognized actuarial gain	(1,671)		—		(4,563)		—
Net Periodic Benefit	(22,030)		(13,639)		(46,531)		(27,423)
Special separation benefit expense	1,118		6,014		1,118		6,014
Total Benefit	$	(20,912)	$	(7,625)	$	(45,413)	$	(21,409)

In the second quarter of 2021, the Company recorded $1.1 million in expenses related to a Separation Incentive Program (SIP) for certain Dekko employees, which will be funded from the assets of the Company’s pension plan. In the second quarter of 2020, the Company recorded $6.0 million in expenses related to a SIP for certain Kaplan, Code3 and Decile employees, which was funded from the assets of the Company’s pension plan.

The total cost arising from the Company’s Supplemental Executive Retirement Plan (SERP) consists of the following components:

	Three Months Ended   June 30				Six Months Ended   June 30
(in thousands)	2021		2020		2021		2020
Service cost	$	256	$	239	$	511	$	477
Interest cost	735		920		1,471		1,839
Amortization of prior service cost	82		82		165		165
Recognized actuarial loss	1,483		1,317		2,965		2,634
Net Periodic Cost	$	2,556	$	2,558	$	5,112	$	5,115

Defined Benefit Plan Assets. The Company’s defined benefit pension obligations are funded by a portfolio made up of a private investment fund, a U.S. stock index fund, and a relatively small number of stocks and high-quality fixed-income securities that are held by a third-party trustee. The assets of the Company’s pension plans were allocated as follows:

	As of
	June 30, 2021		December 31, 2020
U.S. equities	60	%	58	%
Private investment fund	18	%	18	%
U.S. stock index fund	9	%	9	%
International equities	7	%	8	%
U.S. fixed income	6	%	7	%
	100	%	100	%

The Company manages approximately 40% of the pension assets internally, of which the majority is invested in a private investment fund with the remaining investments in Berkshire Hathaway stock, a U.S. stock index fund and short-term fixed-income securities. The remaining 60% of plan assets are managed by two investment companies. The goal of the investment managers is to produce moderate long-term growth in the value of these assets, while protecting them against large decreases in value. Both investment managers may invest in a combination of equity and fixed-income securities and cash. The managers are not permitted to invest in securities of the Company or in alternative investments. One investment manager cannot invest more than 15% of the assets at the time of purchase in the stock of Alphabet and Berkshire Hathaway, and no more than 30% of the assets it manages in specified international exchanges at the time the investment is made. The other investment manager cannot invest more than 20% of the assets at the time of purchase in the stock of Berkshire Hathaway, and no more than 15% of the assets it manages in specified international exchanges at the time the investment is made, and no less than 10% of the assets could be invested in fixed-income securities. Excluding the exceptions noted above, the investment managers cannot invest more than 10% of the assets in the securities of any other single issuer, except for obligations of the U.S. Government, without receiving prior approval from the Plan administrator.

18

In determining the expected rate of return on plan assets, the Company considers the relative weighting of plan assets, the historical performance of total plan assets and individual asset classes and economic and other indicators of future performance. In addition, the Company may consult with and consider the input of financial and other professionals in developing appropriate return benchmarks.

The Company evaluated its defined benefit pension plan asset portfolio for the existence of significant concentrations (defined as greater than 10% of plan assets) of credit risk as of June 30, 2021. Types of concentrations that were evaluated include, but are not limited to, investment concentrations in a single entity, type of industry, foreign country and individual fund. At June 30, 2021, the pension plan held investments in one common stock and one private investment fund that exceeded 10% of total plan assets, valued at $976.9 million, or approximately 31% of total plan assets. At December 31, 2020, the pension plan held investments in one common stock and one private investment fund that exceeded 10% of total plan assets, valued at $850.6 million, or approximately 30% of total plan assets.

Other Postretirement Plans. The total cost arising from the Company’s other postretirement plans consists of the following components:

	Three Months Ended   June 30				Six Months Ended   June 30
(in thousands)	2021		2020		2021		2020
Interest cost	$	10	$	22	$	46	$	84
Amortization of prior service credit	(2)		(121)		(4)		(241)
Recognized actuarial gain	(736)		(927)		(1,755)		(2,024)
Net Periodic Benefit	$	(728)	$	(1,026)	$	(1,713)	$	(2,181)

13. OTHER NON-OPERATING INCOME

A summary of non-operating income is as follows:

	Three Months Ended   June 30				Six Months Ended   June 30
(in thousands)	2021		2020		2021		2020
Gain on cost method investments	$	7,783	$	2,571	$	10,506	$	2,571
Gain on sale of cost method investments	6,699		—		6,793		518
Gain on sale of businesses	644		1,653		1,446		1,760
Foreign currency gain (loss), net	677		(1,070)		680		3,220
Gain on acquiring a controlling interest in an equity affiliate	—		3,708		—		3,708
Impairment of cost method investments	—		—		—		(2,577)
Gain on sale of equity affiliates	—		1,473		—		1,370
Other gain (loss), net	319		(235)		3,017		218
Total Other Non-Operating Income	$	16,122	$	8,100	$	22,442	$	10,788

The gains on cost method investments result from observable price changes in the fair value of the underlying equity securities accounted for under the cost method (see Notes 3 and 8).

During the three and six months ended June 30, 2021, the Company recorded contingent consideration gains of $0.6 million and $1.5 million, respectively, related to the disposition of Kaplan University (KU) in 2018. During the three and six months ended June 30, 2020, the Company recorded contingent consideration gains of $1.7 million and $1.8 million, respectively.

In the second quarter of 2020, the Company made an additional investment in Framebridge (see Notes 2 and 3) that resulted in the Company obtaining control of the investee. The Company remeasured its previously held equity interest in Framebridge at the acquisition-date fair value and recorded a gain of $3.7 million. The fair value was determined using a market approach by using the share value indicated in the transaction.

19

14. ACCUMULATED OTHER COMPREHENSIVE INCOME (LOSS)

The other comprehensive income (loss) consists of the following components:

	Three Months Ended June 30
	2021						2020
	Before-Tax		Income		After-Tax		Before-Tax		Income		After-Tax
(in thousands)	Amount		Tax		Amount		Amount		Tax		Amount
Foreign currency translation adjustments:
Translation adjustments arising during the period	$	1,167	$	—	$	1,167	$	16,405	$	—	$	16,405
Pension and other postretirement plans:
Amortization of net prior service cost included in net income	792		(214)		578		668		(181)		487
Amortization of net actuarial (gain) loss included in net income	(924)		249		(675)		390		(104)		286
	(132)		35		(97)		1,058		(285)		773
Cash flow hedges:
Gain (loss) for the period	13		(3)		10		(143)		33		(110)
Other Comprehensive Income	$	1,048	$	32	$	1,080	$	17,320	$	(252)	$	17,068

	Six Months Ended June 30
	2021						2020
	Before-Tax		Income		After-Tax		Before-Tax		Income		After-Tax
(in thousands)	Amount		Tax		Amount		Amount		Tax		Amount
Foreign currency translation adjustments:
Translation adjustments arising during the period	$	681	$	—	$	681	$	(20,971)	$	—	$	(20,971)
Pension and other postretirement plans:
Amortization of net prior service cost included in net income	1,584		(427)		1,157		1,339		(362)		977
Amortization of net actuarial (gain) loss included in net income	(3,353)		905		(2,448)		610		(164)		446
	(1,769)		478		(1,291)		1,949		(526)		1,423
Cash flow hedges:
Gain (loss) for the period	634		(147)		487		(1,721)		394		(1,327)
Other Comprehensive Loss	$	(454)	$	331	$	(123)	$	(20,743)	$	(132)	$	(20,875)

The accumulated balances related to each component of other comprehensive income (loss) are as follows:

(in thousands, net of taxes)	Cumulative Foreign Currency Translation Adjustment		Unrealized Gain on Pensions and Other Postretirement Plans		Cash Flow Hedges		Accumulated Other Comprehensive Income
Balance as of December 31, 2020	$	9,754	$	595,287	$	(1,727)	$	603,314
Other comprehensive income before reclassifications	681		—		180		861
Net amount reclassified from accumulated other comprehensive income (loss)	—		(1,291)		307		(984)
Other comprehensive income (loss), net of tax	681		(1,291)		487		(123)
Balance as of June 30, 2021	$	10,435	$	593,996	$	(1,240)	$	603,191

20

The amounts and line items of reclassifications out of Accumulated Other Comprehensive Income (Loss) are as follows:

	Three Months Ended   June 30				Six Months Ended   June 30				Affected Line Item in the Condensed Consolidated Statements of Operations
(in thousands)	2021		2020		2021		2020
Pension and Other Postretirement Plans:
Amortization of net prior service cost	$	792	$	668	$	1,584	$	1,339	(1)
Amortization of net actuarial (gain) loss	(924)		390		(3,353)		610		(1)
	(132)		1,058		(1,769)		1,949		Before tax
	35		(285)		478		(526)		Provision for (Benefit from) Income Taxes
	(97)		773		(1,291)		1,423		Net of Tax
Cash Flow Hedges
	153		118		307		147		Interest expense
	—		6		—		13		Provision for (Benefit from) Income Taxes
	153		124		307		160		Net of Tax
Total reclassification for the period	$	56	$	897	$	(984)	$	1,583	Net of Tax

____________

(1)    These accumulated other comprehensive income components are included in the computation of net periodic pension and postretirement plan cost (see Note 12) and are included in non-operating pension and postretirement benefit income in the Company’s Condensed Consolidated Statements of Operations.

15. CONTINGENCIES

Litigation, Legal and Other Matters.  The Company and its subsidiaries are subject to complaints and administrative proceedings and are defendants in various civil lawsuits that have arisen in the ordinary course of their businesses, including contract disputes; actions alleging negligence, libel, defamation and invasion of privacy; trademark, copyright and patent infringement; violations of employment laws and applicable wage and hour laws; and statutory or common law claims involving current and former students and employees. Although the outcomes of the legal claims and proceedings against the Company cannot be predicted with certainty, based on currently available information, management believes that there are no existing claims or proceedings that are likely to have a material effect on the Company’s business, financial condition, results of operations or cash flows. However, based on currently available information, management believes it is reasonably possible that future losses from existing and threatened legal, regulatory and other proceedings in excess of the amounts recorded could reach approximately $10 million.

In 2015, Kaplan sold substantially all of the assets of the Kaplan Higher Education Campuses (KHEC) business to Education Corporation of America. In 2018, certain subsidiaries of Kaplan contributed the institutional assets and operations of KU to a new university: an Indiana nonprofit, public-benefit corporation affiliated with Purdue University, known as Purdue University Global. Kaplan could be held liable to the current owners of KU and the KHEC schools related to the pre-sale conduct of the schools, and the pre-sale conduct of the schools has been and could be the subject of future compliance reviews, regulatory proceedings or lawsuits that could result in monetary liabilities or fines or other sanctions. In May 2021, Kaplan received a Notice from the U.S. Department of Education (ED) that the department would be requiring a fact-finding process pursuant to the borrower defense to repayment regulations to determine the validity of more than 800 borrower defense to repayment claims and a request for documents related to several of Kaplan’s previously-owned schools. More recently, Kaplan has received information requests from the ED related to over 1,400 student claims for the ED to grant debt relief. If the ED grants any student claims, it is possible that the ED would seek reimbursement from Kaplan. Based on Kaplan’s initial review of the information received from the ED, Kaplan believes it has legal claims that would bar any student discharge or school liability and expects to vigorously defend any attempt by the ED to hold Kaplan liable for any ultimate student discharges. At this time, Kaplan is uncertain as to the total number of possible claims or the amount of potential liability.

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16. BUSINESS SEGMENTS

The Company has six reportable segments: Kaplan International, Kaplan Higher Education, Kaplan Supplemental Education, Television Broadcasting, Manufacturing and Healthcare.

Across all businesses, restructuring related costs of $29.2 million and $31.3 million were recorded for the three and six months ended June 30, 2020, respectively. Kaplan Higher Education recorded $2.0 million in facility related restructuring costs in the first quarter of 2020. Restructuring related costs across all businesses during the first six months of 2020 were recorded as follows:

(in thousands)	Kaplan International		Higher Education		Supplemental Education		Kaplan Corporate		Total Education		Other Businesses		Total
Severance	$	1,224	$	—	$	—	$	—	$	1,224	$	—	$	1,224
Facility related costs:
Operating lease cost	2,418		3,442		3,296		—		9,156		—		9,156
Accelerated depreciation of property, plant and equipment	1,472		95		1,801		—		3,368		—		3,368
Total Restructuring Costs Included in Segment Income (Loss) from Operations (1)	$	5,114	$	3,537	$	5,097	$	—	$	13,748	$	—	$	13,748
Impairment of other long-lived assets:
Lease right-of-use assets	3,790		2,062		2,198		—		8,050		1,405		9,455
Property, plant and equipment	1,199		174		597		—		1,970		86		2,056
Non-operating pension and postretirement benefit income, net	1,100		1,431		2,295		189		5,015		999		6,014
Total Restructuring Related Costs	$	11,203	$	7,204	$	10,187	$	189	$	28,783	$	2,490	$	31,273

(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.

In June 2020, CRG made the decision to close its restaurant and entertainment venue in Columbia, MD effective July 19, 2020 and recorded accelerated depreciation of property, plant and equipment totaling $2.8 million.

22

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

	Three months ended				Six months ended
	June 30				June 30
(in thousands)	2021		2020		2021		2020
Operating Revenues
Education	$	339,984	$	333,175	$	669,301	$	689,553
Television broadcasting	119,966		100,762		233,591		216,210
Manufacturing	141,123		83,239		257,083		196,697
Healthcare	54,696		49,181		104,739		95,175
Other businesses	145,899		86,863		249,938		188,145
Corporate office	—		—		—		—
Intersegment elimination	(516)		(349)		(1,045)		(652)
	$	801,152	$	652,871	$	1,513,607	$	1,385,128
Income (Loss) from Operations before Amortization of Intangible Assets and Impairment of Goodwill and Other Long-Lived Assets
Education	$	19,221	$	26,545	$	43,369	$	35,438
Television broadcasting	36,964		24,988		71,301		62,124
Manufacturing	19,038		5,506		34,932		19,144
Healthcare	9,375		10,125		17,296		14,604
Other businesses	(14,780)		(22,429)		(33,472)		(39,352)
Corporate office	(14,570)		(13,020)		(29,350)		(21,592)
	$	55,248	$	31,715	$	104,076	$	70,366
Amortization of Intangible Assets and Impairment of Goodwill and Other Long-Lived Assets
Education	$	6,073	$	14,291	$	11,285	$	18,492
Television broadcasting	1,361		1,361		2,720		2,721
Manufacturing	6,610		6,988		13,597		14,125
Healthcare	780		1,307		1,561		2,617
Other businesses	2,833		1,891		3,478		18,449
Corporate office	—		—		—		—
	$	17,657	$	25,838	$	32,641	$	56,404
Income (Loss) from Operations
Education	$	13,148	$	12,254	$	32,084	$	16,946
Television broadcasting	35,603		23,627		68,581		59,403
Manufacturing	12,428		(1,482)		21,335		5,019
Healthcare	8,595		8,818		15,735		11,987
Other businesses	(17,613)		(24,320)		(36,950)		(57,801)
Corporate office	(14,570)		(13,020)		(29,350)		(21,592)
	$	37,591	$	5,877	$	71,435	$	13,962
Equity in Earnings (Losses) of Affiliates, Net	1,776		1,182		15,204		(365)
Interest Expense, Net	(5,477)		(6,423)		(13,035)		(12,950)
Non-Operating Pension and Postretirement Benefit Income, Net	25,216		12,136		54,003		30,539
Gain (Loss) on Marketable Equity Securities, Net	83,698		39,890		162,912		(60,503)
Other Income, Net	16,122		8,100		22,442		10,788
Income (Loss) Before Income Taxes	$	158,926	$	60,762	$	312,961	$	(18,529)
Depreciation of Property, Plant and Equipment
Education	$	7,482	$	10,324	$	15,262	$	17,653
Television broadcasting	3,543		3,446		7,016		6,789
Manufacturing	2,427		2,526		4,944		5,053
Healthcare	331		493		648		1,033
Other businesses	2,659		5,948		4,949		8,738
Corporate office	158		176		326		351
	$	16,600	$	22,913	$	33,145	$	39,617
Pension Service Cost
Education	$	2,398	$	2,592	$	4,681	$	5,177
Television broadcasting	956		836		1,791		1,632
Manufacturing	246		395		641		789
Healthcare	108		112		280		271
Other businesses	487		403		856		866
Corporate office	1,682		1,466		3,230		2,852
	$	5,877	$	5,804	$	11,479	$	11,587

23

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

	As of
(in thousands)	June 30, 2021		December 31, 2020
Identifiable Assets
Education	$	1,854,482	$	1,975,104
Television broadcasting	446,499		453,988
Manufacturing	555,155		551,611
Healthcare	165,521		160,654
Other businesses	805,245		517,533
Corporate office	83,409		348,045
	$	3,910,311	$	4,006,935
Investments in Marketable Equity Securities	751,440		573,102
Investments in Affiliates	164,203		155,777
Prepaid Pension Cost	1,750,588		1,708,305
Total Assets	$	6,576,542	$	6,444,119

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

	Three Months Ended				Six months ended
	June 30				June 30
(in thousands)	2021		2020		2021		2020
Operating Revenues
Kaplan international	$	181,276	$	164,713	$	353,171	$	364,328
Higher education	78,740		86,453		154,426		159,990
Supplemental education	77,911		79,785		157,566		161,073
Kaplan corporate and other	3,615		3,039		6,978		6,244
Intersegment elimination	(1,558)		(815)		(2,840)		(2,082)
	$	339,984	$	333,175	$	669,301	$	689,553
Income (Loss) From Operations before Amortization of Intangible Assets and Impairment of Long-Lived Assets
Kaplan international	$	14,077	$	16,035	$	24,284	$	35,015
Higher education	2,374		17,050		8,627		15,030
Supplemental education	8,813		330		21,310		(6,220)
Kaplan corporate and other	(6,042)		(6,870)		(10,949)		(8,392)
Intersegment elimination	(1)		—		97		5
	$	19,221	$	26,545	$	43,369	$	35,438
Amortization of Intangible Assets	$	3,914	$	4,271	$	8,079	$	8,472
Impairment of Long-Lived Assets	$	2,159	$	10,020	$	3,206	$	10,020
Income (Loss) from Operations
Kaplan international	$	14,077	$	16,035	$	24,284	$	35,015
Higher education	2,374		17,050		8,627		15,030
Supplemental education	8,813		330		21,310		(6,220)
Kaplan corporate and other	(12,115)		(21,161)		(22,234)		(26,884)
Intersegment elimination	(1)		—		97		5
	$	13,148	$	12,254	$	32,084	$	16,946
Depreciation of Property, Plant and Equipment
Kaplan international	$	4,835	$	5,619	$	10,087	$	10,197
Higher education	873		832		1,725		1,555
Supplemental education	1,670		3,772		3,246		5,711
Kaplan corporate and other	104		101		204		190
	$	7,482	$	10,324	$	15,262	$	17,653
Pension Service Cost
Kaplan international	$	77	$	120	$	148	$	232
Higher education	1,137		1,070		2,220		2,140
Supplemental education	976		1,084		1,907		2,169
Kaplan corporate and other	208		318		406		636
	$	2,398	$	2,592	$	4,681	$	5,177

24

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

	As of
(in thousands)	June 30, 2021		December 31, 2020
Identifiable Assets
Kaplan international	$	1,346,838	$	1,455,722
Higher education	181,508		187,123
Supplemental education	261,229		274,687
Kaplan corporate and other	64,907		57,572
	$	1,854,482	$	1,975,104

25

Item 2. Management’s Discussion and Analysis of Results of Operations and Financial Condition.

This analysis should be read in conjunction with the condensed consolidated financial statements and the notes thereto.

Results of Operations

The Company reported net income attributable to common shares of $115.4 million ($22.99 per share) for the second quarter of 2021, compared to $18.9 million ($3.60 per share) for the second quarter of 2020.

The COVID-19 pandemic and measures taken to prevent its spread, such as travel restrictions, shelter in place orders and mandatory closures, significantly impacted the Company’s results for 2020 and the first six months of 2021, largely from reduced demand for the Company’s products and services. This significant adverse impact is expected to continue for several of the Company’s businesses for the remainder of 2021. The Company’s management has taken a variety of measures to reduce costs and implement changes to business operations. The Company cannot predict the severity or duration of the pandemic, the extent to which demand for the Company’s products and services will be adversely affected or the degree to which financial and operating results will be negatively impacted.

On June 14, 2021, the Company closed on the previously announced acquisition of all outstanding shares of common stock of Leaf Group Ltd. (Leaf) at $8.50 per share in an all cash transaction valued at approximately $322 million. Leaf Group, headquartered in Santa Monica, CA, is a consumer internet company that builds enduring, creator-driven brands that reach passionate audiences in large and growing lifestyle categories, including fitness and wellness (Well+Good, Livestrong.com and MyPlate App), and home, art and design (Saatchi Art, Society6 and Hunker). The Leaf operating results for the period from June 14, 2021 to June 30, 2021 are included in other businesses.

Items included in the Company’s income before income taxes for the second quarter of 2021:

•a $2.6 million net credit related to a fair value change in contingent consideration from a prior acquisition at Corporate;

•a $0.2 million reduction to operating expenses from property, plant and equipment gains in connection with the spectrum repacking mandate of the FCC;

•$3.4 million in long-lived asset impairment charges;

•$1.1 million in expenses related to a non-operating Separation Incentive Program at manufacturing;

•$83.7 million in net gains on marketable equity securities;

•$1.4 million in net losses of affiliates whose operations are not managed by the Company;

•a net non-operating gain of $14.5 million from the sale and write-up of cost method investments;

•$1.0 million in interest income to adjust the fair value of the mandatorily redeemable noncontrolling interest; and

•$0.7 million in non-operating foreign currency gains.

Items included in the Company’s income before income taxes for the second quarter of 2020:

•$9.3 million in long-lived asset impairment charges;

•$10.2 million in restructuring charges at the education division;

•$2.8 million in accelerated depreciation at other businesses;

•a $1.1 million reduction to operating expenses from property, plant and equipment gains in connection with the spectrum repacking mandate of the FCC;

•$4.6 million in expenses related to non-operating Separation Incentive Programs at the education division and other businesses;

•$39.9 million in net gains on marketable equity securities;

•$3.1 million in net losses of affiliates whose operations are not managed by the Company;

•non-operating gains of $7.8 million from write-ups and sales of cost and equity method investments; and

•$1.1 million in non-operating foreign currency losses.

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Revenue for the second quarter of 2021 was $801.2 million, up 23% from $652.9 million in the second quarter of 2020. Revenues increased at education, television broadcasting, manufacturing, healthcare and other businesses. The Company reported operating income of $37.6 million for the second quarter of 2021, compared to $5.9 million for the second quarter of 2020. The operating income increase is driven by improved results at education, television broadcasting, manufacturing and other businesses.

Items included in the Company’s income before income taxes for the six months of 2021:

•a $2.2 million net credit related to a fair value change in contingent consideration from a prior acquisition at Corporate;

•a $0.8 million reduction to operating expenses from property, plant and equipment gains in connection with the spectrum repacking mandate of the FCC;

•$3.4 million in long-lived asset impairment charges;

•$1.1 million in expenses related to a non-operating Separation Incentive Program at manufacturing;

•$162.9 million in net gains on marketable equity securities;

•$8.9 million in net earnings of affiliates whose operations are not managed by the Company;

•a net non-operating gain of $17.2 million from the sale and write-up of cost method investments;

•$0.1 million in net interest expense to adjust the fair value of the mandatorily redeemable noncontrolling interest; and

•$0.7 million in non-operating foreign currency gains.

Items included in the Company’s loss before income taxes for the six months of 2020:

•$25.7 million in goodwill and other long-lived asset impairment charges;

•$10.2 million in restructuring charges at the education division;

•$2.8 million in accelerated depreciation at other businesses;

•$1.4 million reduction to operating expenses from property, plant and equipment gains in connection with the spectrum repacking mandate of the FCC;

•$4.6 million in expenses related to non-operating Separation Incentive Programs at the education division and other businesses;

•$60.5 million in net losses on marketable equity securities;

•$3.7 million in net losses of affiliates whose operations are not managed by the Company;

•non-operating gain, net, of $1.6 million from write-ups, sales and impairments of cost and equity method investments; and

•$3.2 million in non-operating foreign currency gains.

Revenue for the first six months of 2021 was $1,513.6 million, up 9% from $1,385.1 million in the first six months of 2020. Revenues increased at television broadcasting, manufacturing, healthcare and other businesses, partially offset by a decline at education. The Company reported operating income of $71.4 million for the first six months of 2021, compared to $14.0 million for the first six months of 2020. Operating results improved at most of the Company’s divisions.

Division Results

Education  

Education division revenue totaled $340.0 million for the second quarter of 2021, up 2% from $333.2 million for the same period of 2020. Kaplan reported operating income of $13.1 million for the second quarter of 2021, compared to $12.3 million for the second quarter of 2020.

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For the first six months of 2021, education division revenue totaled $669.3 million, down 3% from revenue of $689.6 million for the same period of 2020. Kaplan reported operating income of $32.1 million for the first six months of 2021, compared to $16.9 million for the first six months of 2020.

The COVID-19 pandemic adversely impacted Kaplan’s operating results beginning in February 2020 and continuing through the first six months of 2021.

Kaplan serves a significant number of students who travel to other countries to study a second language, prepare for licensure, or pursue a higher education degree. Government-imposed travel restrictions and school closures arising from COVID-19 had a negative impact on the ability of international students to travel and attend Kaplan’s programs, particularly Kaplan International’s Language programs. In addition, most licensing bodies and administrators of standardized exams postponed or canceled scheduled examinations due to COVID-19, resulting in a significant number of students deciding to defer their studies, negatively impacting Kaplan’s exam preparation education businesses. Overall, this is expected to continue to adversely impact Kaplan's revenues and operating results for the remainder of 2021, particularly at Kaplan International Languages.

To help mitigate the adverse impact of COVID-19, Kaplan implemented a number of significant cost reduction and restructuring activities across its businesses. Related to these restructuring activities, Kaplan recorded $2.2 million and $3.2 million in impairment of long-lived assets charges in the second quarter and first six months of 2021, respectively. In the second quarter and first six months of 2020, Kaplan recorded $10.5 million and $12.5 million in lease restructuring costs, respectively; and $1.2 million in second quarter 2020 severance restructuring costs. The lease restructuring costs included $3.4 million in accelerated depreciation expense in the second quarter and first six months of 2020. Kaplan also recorded a $10.0 million lease impairment charge in connection with these restructuring plans in the second quarter of 2020; this impairment charge included $2.0 million in property, plant and equipment write-downs. Also in the second quarter of 2020, the Company approved a Separation Incentive Program (SIP) that reduced the number of employees at Kaplan International, Higher Education, Supplemental Education and Kaplan corporate, resulting in $5.0 million in non-operating pension expense in the second quarter of 2020. Kaplan management is continuing to monitor the ongoing COVID-19 disruptions and changes in its operating environment and may develop and implement further restructuring activities in 2021.

In 2020, Kaplan also accelerated the development and promotion of various online programs and solutions, rapidly transitioned most of its classroom-based programs online and addressed the individual needs of its students and partners, substantially reducing the disruption from COVID-19 while simultaneously adding important new product offerings and operating capabilities. Further, in the fourth quarter of 2020, Kaplan combined its three primary divisions based in the United States (Kaplan Test Prep, Kaplan Professional, and Kaplan Higher Education) into one business known as Kaplan North America (KNA). This combination is designed to enhance Kaplan’s competitiveness by better leveraging its diversified academic and professional portfolio, as well as its relationship with students, universities and businesses. For financial reporting purposes, KNA is reported in two segments: Higher Education and Supplemental Education (combining Kaplan Test Prep and Kaplan Professional (U.S.) into one reporting segment).

A summary of Kaplan’s operating results is as follows:

	Three Months Ended					Six Months Ended
	June 30					June 30
(in thousands)	2021		2020		% Change	2021		2020		% Change
Revenue
Kaplan international	$	181,276	$	164,713	10	$	353,171	$	364,328	(3)
Higher education	78,740		86,453		(9)	154,426		159,990		(3)
Supplemental education	77,911		79,785		(2)	157,566		161,073		(2)
Kaplan corporate and other	3,615		3,039		19	6,978		6,244		12
Intersegment elimination	(1,558)		(815)		—	(2,840)		(2,082)		—
	$	339,984	$	333,175	2	$	669,301	$	689,553	(3)
Operating Income (Loss)
Kaplan international	$	14,077	$	16,035	(12)	$	24,284	$	35,015	(31)
Higher education	2,374		17,050		(86)	8,627		15,030		(43)
Supplemental education	8,813		330		—	21,310		(6,220)		—
Kaplan corporate and other	(6,042)		(6,870)		12	(10,949)		(8,392)		(30)
Amortization of intangible assets	(3,914)		(4,271)		8	(8,079)		(8,472)		5
Impairment of long-lived assets	(2,159)		(10,020)		78	(3,206)		(10,020)		68
Intersegment elimination	(1)		—		—	97		5		—
	$	13,148	$	12,254	7	$	32,084	$	16,946	89

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Kaplan International includes postsecondary education, professional training and language training businesses largely outside the United States. Kaplan International revenue increased 10% and decreased 3% for the second quarter and first six months of 2021, respectively (decreases of 1% and 12%, respectively, on a constant currency basis) due largely to COVID-19 disruptions at Languages, partially offset by growth at UK Professional, Singapore, and Pathways. Kaplan International reported operating income of $14.1 million in the second quarter of 2021, compared to $16.0 million in the second quarter of 2020. Operating income decreased to $24.3 million in the first six months of 2021, compared to $35.0 million in the first six months of 2020. The decline in operating results in the second quarter of 2021 is due to COVID-19 reduced student levels at Kaplan’s UK student dormitories at Pathways and at MPW, partially offset by improvements at Languages and UK Professional. The decline in operating results in the first six months of 2021 is due primarily to declines in student levels at Kaplan’s UK student dormitories at Pathways and at MPW, and increased losses at Languages, partially offset by improved earnings at UK Professional. Overall, Kaplan International’s operating results were negatively impacted by $12 million and $26 million in losses, respectively, incurred at Languages from continued significant COVID-19 disruptions for the second quarter and first six months of 2021. In addition, Kaplan International recorded $3.9 million of lease restructuring costs and $1.2 million of severance restructuring costs at Languages in the second quarter of 2020; the lease restructuring costs included $1.5 million in accelerated depreciation expense. Due to the continuation of travel restrictions imposed as a result of COVID-19, Kaplan expects the disruption of its Languages business operating environment to continue for the remainder of 2021.

Higher Education includes the results of Kaplan as a service provider to higher education institutions. In the second quarter and first six months of 2021, Higher Education revenue declined 9% and 3%, respectively, due to a reduction in the Purdue Global fee recorded. For the second quarter and first half of 2021, Kaplan recorded a portion of the fee with Purdue Global based on an assessment of its collectability under the TOSA. Higher Education operating income was down substantially from the prior year, as the Purdue Global fee recognized in the first six months of 2021 was lower than the amount recognized in the prior year, due to less cash available for distribution at June 30, 2021 due to timing of cash receipts at Purdue Global. The Company will continue to assess the collectability of the fee with Purdue Global on a quarterly basis to make a determination as to whether to record all or part of the fee in the future and whether to make adjustments to fee amounts recognized in earlier periods. For the second quarter and first six months of 2020, Kaplan Higher Education recorded $1.5 million and $3.5 million, respectively, in lease restructuring costs, of which $0.1 million was accelerated depreciation expense.

As of June 30, 2021, Kaplan had a total outstanding accounts receivable balance of $87.8 million from Purdue Global related to amounts due for reimbursements for services, fees earned and a deferred fee. Included in this total, Kaplan has a $19.1 million long-term receivable balance due from Purdue Global at June 30, 2021, related to the advance of $20 million during the initial KU Transaction.

Supplemental Education includes Kaplan’s standardized test preparation programs and domestic professional and other continuing education businesses. Supplemental Education revenue declined 2% for the second quarter and first six months of 2021, due to a decline in retail comprehensive test preparation demand, offset in part by product-life extensions in 2020 related to the postponement of various standardized test and certification exam dates due to COVID-19, as well as growth in real estate and insurance programs. Operating results improved in 2021 due to savings from restructuring activities implemented in 2020, $5.1 million of lease restructuring costs incurred in the second quarter of 2020 (of which $1.8 million was accelerated depreciation) and the adverse revenue impact from product-life extensions in the first half of 2020.

Kaplan corporate and other represents unallocated expenses of Kaplan, Inc.’s corporate office, other minor businesses and certain shared activities. Overall, Kaplan corporate and other expenses increased in the first six months of 2021 due to higher compensation costs.

Television Broadcasting

	Three Months Ended					Six Months Ended
	June 30					June 30
(in thousands)	2021		2020		% Change	2021		2020		% Change
Revenue	$	119,966	$	100,762	19	$	233,591	$	216,210	8
Operating Income	35,603		23,627		51	68,581		59,403		15

Revenue at the television broadcasting division increased 19% to $120.0 million in the second quarter of 2021, from $100.8 million in the same period of 2020. The revenue increase is due to increased local and national advertising revenues, which were adversely impacted in 2020 by reduced demand related to the COVID-19 pandemic, and a $1.8 million increase in retransmission revenues, partially offset by a $3.7 million decline in political advertising revenue. The increase in local and national advertising was from growth in the home products, health and fitness, and sports betting categories. In the second quarter of 2021 and 2020, the television broadcasting division recorded $0.2 million and $1.1 million, respectively, in reductions to operating expenses related to property, plant and equipment gains due to new equipment received at no cost in connection with the spectrum repacking mandate of

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the FCC. Operating income for the second quarter of 2021 increased 51% to $35.6 million, from $23.6 million in the same period of 2020, due to increased revenues, offset by higher network fees.

Revenue at the television broadcasting division increased 8% to $233.6 million in the first six months of 2021, from $216.2 million in the same period of 2020. The revenue increase is due to increased local and national advertising revenues, which were adversely impacted in 2020 by reduced demand related to the COVID-19 pandemic, and a $5.8 million increase in retransmission revenues, partially offset by a $14.0 million decline in political advertising revenue. The increase in local and national advertising was from growth in the home products, health and fitness, and sports betting categories. In the first six months of 2021 and 2020, the television broadcasting division recorded $0.8 million and $1.4 million, respectively, in reductions to operating expenses related to property, plant and equipment gains due to new equipment received at no cost in connection with the spectrum repacking mandate of the FCC. Operating income for the first six months of 2021 increased 15% to $68.6 million, from $59.4 million in the same period of 2020, due to increased revenues, offset by higher network fees.

In March 2021, the Company’s television stations located in Orlando, FL and Jacksonville, FL received approval of their FCC license renewals through February 1, 2029.

Manufacturing

	Three Months Ended					Six Months Ended
	June 30					June 30
(in thousands)	2021		2020		% Change	2021		2020		% Change
Revenue	$	141,123	$	83,239	70	$	257,083	$	196,697	31
Operating Income (Loss)	12,428		(1,482)		—	21,335		5,019		—

Manufacturing includes four businesses: Hoover, a supplier of pressure impregnated kiln-dried lumber and plywood products for fire retardant and preservative applications; Dekko, a manufacturer of electrical workspace solutions, architectural lighting and electrical components and assemblies; Joyce/Dayton, a manufacturer of screw jacks and other linear motion systems; and Forney, a global supplier of products and systems that control and monitor combustion processes in electric utility and industrial applications.

Manufacturing revenues increased 70% and 31% in the second quarter and first six months of 2021, respectively. The revenue growth for the second quarter of 2021 is due primarily to significantly increased revenues at Hoover from substantially higher wood prices and improved product demand, as well as increased revenue at Dekko. The revenue growth for the first half of 2021 is due primarily to significantly increased revenues at Hoover from substantially higher wood prices and improved product demand, partially offset by lower revenues at Dekko from lower product demand. Manufacturing operating results improved in the second quarter of 2021 due to significantly higher results at Hoover from substantial gains on inventory sales and improved results at Dekko. Manufacturing operating results improved in the first six months of 2021 due to significantly higher results at Hoover from substantial gains on inventory sales, partially offset by a decline in Dekko results from lower revenues and higher prices for certain commodities. Wood prices began to decline in June 2021 and this trend has continued in July 2021, which is expected to result in significant losses on inventory sales at Hoover in the third quarter of 2021, offsetting significant gains on inventory sales at Hoover in the first half of 2021.

In the second quarter of 2021, Dekko announced a plan to relocate its manufacturing operations in Shelton, CT to other Dekko manufacturing facilities. In connection with this activity, Dekko is in the process of implementing a SIP for the affected employees, resulting in $1.1 million in non-operating SIP expense recorded in the second quarter of 2021, to be funded by the assets of the Company's pension plan.

Healthcare

	Three Months Ended					Six Months Ended
	June 30					June 30
(in thousands)	2021		2020		% Change	2021		2020		% Change
Revenue	$	54,696	$	49,181	11	$	104,739	$	95,175	10
Operating Income	8,595		8,818		(3)	15,735		11,987		31

The Graham Healthcare Group (GHG) provides home health and hospice services in three states. GHG provides other healthcare services, including nursing care and prescription services for patients receiving in-home infusion treatments through its 75% interest in CSI Pharmacy Holdings Company, LLC (CSI). Healthcare revenues increased 11% and 10% for the second quarter and first six months of 2021, respectively, largely due to growth at CSI. The increase in GHG operating results in the first six months of 2021 is due to improved results from home health services and CSI.

In the second quarter of 2020, GHG received $7.4 million from the Federal CARES Act Provider Relief Fund. GHG did not apply for these funds; they were disbursed to GHG as a Medicare provider under the CARES Act. Under the

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Department of Health and Human Services guidelines, these funds may be used to offset revenue reductions and expenses incurred in connection with the COVID-19 pandemic. Of this amount, GHG recorded $5.5 million in revenue in the second quarter to partially offset the impact of revenue reductions due to the COVID-19 pandemic from the curtailment of elective procedures by health systems and other factors. GHG recorded $1.7 million as a credit to operating costs to partially offset the impact of costs incurred to procure personal protective equipment for GHG employees and other COVID-19 related costs.

Other Businesses

Automotive

Automotive includes three automotive dealerships in the Washington, D.C. metropolitan area: Lexus of Rockville, Honda of Tysons Corner, and Ourisman Jeep of Bethesda. Revenues for the second quarter and first six months of 2021 increased significantly due to sales growth at each of the three dealerships, due partly to significantly reduced demand for sales and service in the first half of 2020 at the onset of the COVID-19 pandemic in March 2020. As a result of the pandemic and the related recessionary conditions, the Company’s automotive dealerships recorded a $6.7 million intangible asset impairment charge in the first quarter of 2020. Operating earnings for the second quarter and first six months of 2021 improved significantly from losses in the prior year due to increased sales and margins, in addition to the impairment charge recorded in the first quarter of 2020.

Clyde’s Restaurant Group

Clyde’s Restaurant Group (CRG) owns and operates eleven restaurants and entertainment venues in the Washington, D.C. metropolitan area, including Old Ebbitt Grill and The Hamilton. As a result of the COVID-19 pandemic, CRG temporarily closed all of its restaurants and venues in mid-March 2020 through mid-June 2020, pursuant to government orders, maintaining limited operations for outdoor dining, delivery and pickup. CRG recorded a $9.7 million goodwill and intangible assets impairment charge in the first quarter of 2020. In December 2020, CRG temporarily closed its restaurant dining rooms in Maryland and the District of Columbia for the second time, reopening again for limited indoor dining service in mid-February 2021. Dining restrictions from government orders were substantially lifted for all of CRG’s operations by the end of the second quarter of 2021. In June 2020, CRG made the decision to close its restaurant and entertainment venue in Columbia, MD effective July 19, 2020, resulting in accelerated depreciation of property, plant and equipment totaling $2.8 million in the second quarter of 2020.

Overall, CRG incurred operating losses in each of the second quarters and first six months of 2021 and 2020 due to limited revenues and costs incurred to maintain its facilities and support its employees, however, those losses were significantly lower in 2021. While CRG revenues have been adversely impacted as a result of the pandemic, such revenues improved steadily in each of the first six months of 2021. CRG continues to develop and implement initiatives to increase sales and reduce costs to mitigate the impact of COVID-19.

Framebridge

On May 15, 2020, the Company acquired Framebridge, Inc., a custom framing service company, headquartered in Washington, DC, with two retail locations in the DC metropolitan area and a manufacturing facility in Richmond, KY. At the end of the second quarter of 2021, Framebridge had nine retail locations in the Washington, DC, New York City, Atlanta, GA and Philadelphia, PA areas and two manufacturing facilities in Kentucky. Framebridge expects to open six additional stores in the Boston, MA, Chicago, IL and New York City areas in the second half of 2021. Framebridge revenues in the first six months of 2021 were up substantially from the prior year. Framebridge is an investment stage business and reported significant operating losses in the first six months of 2021.

Code3

Code3 is a performance marketing agency focused on driving performance for brands through three core elements of digital success: media, creative and commerce. Code3 revenue declined in the second quarter and first six months of 2021, due to continued sluggish marketing spending by some advertising clients, offset by increased commerce and creative revenues. Code3 reported operating losses in the second quarter and first six months of 2021 and 2020. In the second quarter of 2021, Code 3 recorded a $1.6 million lease impairment charge (including $0.4 million in property, plant and equipment write-downs). In the second quarter of 2020, Code3 recorded a $1.5 million lease impairment charge (including $0.1 million in property, plant and equipment write-downs) in connection with a restructuring plan that included other cost reduction initiatives. These initiatives included the approval of a SIP that reduced the number of employees at Code3, resulting in $1.0 million in non-operating pension expense in the second quarter of 2020.

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Leaf Group

On June 14, 2021, the Company closed on the Leaf acquisition; the Leaf operating results are included in other businesses for the Company’s period of ownership in the second quarter of 2021.

Megaphone

Megaphone was sold by the Company to Spotify in December 2020.

Other

Other businesses also include Slate and Foreign Policy, which publish online and print magazines and websites; and four investment stage businesses, CyberVista, Decile and Pinna, as well as City Cast, a local daily podcast business that began operations in 2021. All of these businesses reported revenue increases in the first six months of 2021. Losses from each of these six businesses in the first six months of 2021 adversely affected operating results.

Overall, for the second quarter of 2021, operating revenues for other businesses increased due largely to increases at the automotive dealerships and CRG and from the Framebridge and Leaf acquisitions, partially offset by declines due to the sale of Megaphone in December 2020. For the first six months of 2021, operating revenues for other businesses increased due largely to increases at the automotive dealerships and from the Framebridge and Leaf acquisitions, partially offset by declines at Code3, and due to the sale of Megaphone in December 2020. Operating results improved in the second quarter and first six months of 2021 primarily due to improvements at the automotive dealerships and CRG, in addition to the goodwill and other long-lived asset impairment charges recorded in the first quarter of 2020 at those businesses, partially offset by losses at Framebridge.

Corporate Office

Corporate office includes the expenses of the Company’s corporate office and certain continuing obligations related to prior business dispositions. Corporate office expenses increased in the first six months of 2021 due primarily to higher compensation costs, offset by a credit related to the fair value change in contingent consideration related to the Framebridge acquisition.

Equity in Earnings of Affiliates

At June 30, 2021, the Company held an approximate 12% interest in Intersection Holdings, LLC (Intersection), a company that provides digital marketing and advertising services and products for cities, transit systems, airports, and other public and private spaces. The Company also holds interests in several other affiliates, including a number of home health and hospice joint ventures managed by GHG and two joint ventures managed by Kaplan. Overall, the Company recorded equity in earnings of affiliates of $1.8 million for the second quarter of 2021, compared to earnings of $1.2 million for the second quarter of 2020. These amounts include $1.4 million in net losses for the second quarter of 2021 and $3.1 million in net losses for the second quarter of 2020 from affiliates whose operations are not managed by the Company; this includes losses from the Company’s investment in Intersection in the second quarter of 2021.

The Company recorded equity in earnings of affiliates of $15.2 million for the first six months of 2021, compared to losses of $0.4 million for the first six months of 2020. These amounts include $8.9 million in net earnings for the first six months of 2021 and $3.7 million in net losses for the first six months of 2020 from affiliates whose operations are not managed by the Company; this includes losses from the Company’s investment in Intersection in the first six months of 2021. The Company recorded $3.6 million in write-downs in equity in earnings of affiliates related to two of its investments in the first quarter of 2020.

The recessionary environment resulting from the COVID-19 pandemic adversely impacted the underlying businesses of Intersection due to lower marketing spending by advertising clients. The decline in revenues adversely impacted the operating results and liquidity of the business since the onset of the COVID-19 pandemic. The Company concluded that these events are not indicative of an other than temporary decline in the value of its investment to an amount less than its carrying value. Given the uncertain economic impact of the COVID-19 pandemic, it is possible that an other than temporary impairment charge could occur in the future should Intersection fail to execute on its operating strategy to address the decline in revenues and operating results. Further, the Company recorded a $13.3 million loss in equity earnings related to Intersection in the first six months of 2021 and expects to record additional losses for the remainder of 2021.

Net Interest Expense and Related Balances

The Company incurred net interest expense of $5.5 million and $13.0 million for the second quarter and first six months of 2021, respectively; compared to $6.4 million and $13.0 million for the second quarter and first six months

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of 2020, respectively. The Company recorded interest income of $1.0 million in the second quarter of 2021 and net interest expense of $0.1 million in the first six months of 2021 to adjust the fair value of the mandatorily redeemable noncontrolling interest at GHG.

At June 30, 2021, the Company had $510.3 million in borrowings outstanding at an average interest rate of 5.1% and cash, marketable equity securities and other investments of $891.3 million. At June 30, 2021, the Company had £55 million ($76.2 million) outstanding on its $300 million revolving credit facility. In management’s opinion, the Company will have sufficient financial resources to meet its business requirements in the next twelve months, including working capital requirements, capital expenditures, interest payments and dividends.

Non-operating Pension and Postretirement Benefit Income, net

The Company recorded net non-operating pension and postretirement benefit income of $25.2 million and $54.0 million for the second quarter and first six months of 2021, respectively; compared to $12.1 million and $30.5 million for the second quarter and first six months of 2020, respectively.

In the second quarter of 2021, the Company recorded $1.1 million in expenses related to a non-operating SIP at manufacturing. In the second quarter of 2020, the Company recorded $6.0 million in expenses related to non-operating SIPs at the education division and other businesses.

Gain (Loss) on Marketable Equity Securities, net

Overall, the Company recognized $83.7 million and $162.9 million in net gains on marketable equity securities in the second quarter and first six months of 2021, respectively; compared to $39.9 million in net gains and $60.5 million in net losses on marketable equity securities in the second quarter and first six months of 2020, respectively.

Other Non-Operating Income

The Company recorded total other non-operating income, net, of $16.1 million for the second quarter of 2021, compared to $8.1 million for the second quarter of 2020. The 2021 amounts included $6.7 million in gains on the sale of cost method investments; $7.8 million in fair value increases on cost method investments and other items. The 2020 amounts included a $3.7 million gain on acquiring a controlling interest in an equity affiliate; a $2.6 million fair value increase on a cost method investment; a $1.5 million gain on sale of an equity affiliate, and other items; offset by $1.1 million in foreign currency losses.

The Company recorded total other non-operating income, net of $22.4 million for the first six months of 2021, compared to $10.8 million for the first six months of 2020. The 2021 amounts included $6.8 million in gains on sales of cost method investments; $10.5 million in fair value increases on cost method investments and other items. The 2020 amounts included a $3.7 million gain on acquiring a controlling interest in an equity affiliate; $3.2 million in foreign currency gains; a $2.6 million gain on a cost method investment; $1.4 million in net gains on sales of equity affiliates, and other items; partially offset by $2.6 million in impairments on cost method investments.

Provision for (Benefit from) Income Taxes

The Company’s effective tax rate for the first six months of 2021 and 2020 was 27.0% and 18.9%, respectively.

Earnings (Losses) Per Share

The calculation of diluted earnings (losses) per share for the second quarter and first six months of 2021 was based on 4,985,488 and 4,981,000 weighted average shares outstanding, respectively, compared to 5,201,101 and 5,234,809, respectively, for the second quarter and first six months of 2020. At June 30, 2021, there were 5,001,462 shares outstanding. On September 10, 2020, the Board of Directors authorized the Company to acquire up to 500,000 shares of its Class B common stock; the Company has remaining authorization for 364,151 shares as of June 30, 2021.

Financial Condition: Capital Resources and Liquidity

The Company considers the following when assessing its liquidity and capital resources:

	As of
(In thousands)	June 30, 2021		December 31, 2020
Cash and cash equivalents	$	114,802	$	413,991
Restricted cash	10,730		9,063
Investments in marketable equity securities and other investments	765,740		587,582
Total debt	510,327		512,555

33

Cash generated by operations is the Company’s primary source of liquidity. The Company maintains investments in a portfolio of marketable equity securities, which is considered when assessing the Company’s sources of liquidity. An additional source of liquidity includes the undrawn portion of the Company’s $300 million revolving credit facility, amounting to $223.8 million at June 30, 2021.

In March 2020, the U.S. government enacted legislation, including the Coronavirus Aid, Relief, and Economic Security Act (CARES Act) to provide stimulus in the form of financial aid to businesses affected by the COVID-19 pandemic. Under the CARES Act, employers may defer the payment of the employer share of FICA taxes due for the period beginning on March 27, 2020, and ending December 31, 2020. As of June 30, 2021, the Company has deferred $21.4 million of FICA payments under this program, of which 50% is due by December 31, 2021 and the remaining balance due by December 31, 2022.

The CARES Act also included provisions to support healthcare providers in the form of grants and changes to Medicare and Medicaid payments. In the second quarter of 2020, GHG received $7.4 million under the CARES Act as a general distribution from the Provider Relief Fund to provide relief for lost revenues and expenses incurred in connection with COVID-19. In addition to the above distribution, in April 2020, GHG applied for and received $31.5 million under the expanded Medicare Accelerated and Advanced Payment Program, modified by the CARES Act. The Department of Health and Human Services (HHS) started to recoup this advance in April 2021 by withholding a portion of the amount reimbursed for claims submitted for services provided after the beginning of the recoupment period. During the three and six months ended June 30, 2021, an amount of $5.0 million was withheld by HHS and the Company expects the remaining balance of $26.5 million to be withheld from claims submitted in the next twelve months.

Governments in other jurisdictions where the Company operates also provided relief to businesses affected by the COVID-19 pandemic in the form of job retention schemes, payroll assistance, deferral of income and other tax payments, and loans. During the first six months of 2021, Kaplan recorded benefits totaling $2.9 million related to job retention and payroll schemes, mostly at Kaplan International. Additionally, Kaplan deferred VAT and other tax payments in Ireland, of which $1.4 million is outstanding as of June 30, 2021.

During the first six months of 2021, the Company’s cash and cash equivalents decreased by $299.2 million, due to the acquisition of Leaf, the purchase of marketable equity securities, deferred payments on previous acquisitions, capital expenditures and payments of dividends, which was partially offset by cash generated from operations and the proceeds from the sale of marketable equity securities. In the first six months of 2021, the Company’s borrowings decreased by $2.2 million, due to repayments, which were partially offset by foreign currency translation adjustments.

The Company had no money market investments as of June 30, 2021, compared to $268.8 million at December 31, 2020, which are included in cash and cash equivalents. At June 30, 2021, the Company held approximately $69 million in cash and cash equivalents in businesses domiciled outside the U.S., of which approximately $8 million is not available for immediate use in operations or for distribution. Additionally, Kaplan’s business operations outside the U.S. retain cash balances to support ongoing working capital requirements, capital expenditures, and regulatory requirements. As a result, the Company considers a significant portion of the cash and cash equivalents balance held outside the U.S. as not readily available for use in U.S. operations.

At June 30, 2021, the fair value of the Company’s investments in marketable equity securities was $751.4 million, which includes investments in the common stock of seven publicly traded companies. The Company purchased $48.0 million of marketable equity securities during the first six months of 2021. During the first six months of 2021, the Company sold marketable equity securities that generated proceeds of $37.6 million. At June 30, 2021, the unrealized gain related to the Company’s investments totaled $474.9 million.

The Company had working capital of $738.0 million and $824.5 million at June 30, 2021 and December 31, 2020, respectively. The Company maintains working capital levels consistent with its underlying business requirements and consistently generates cash from operations in excess of required interest or principal payments.

At June 30, 2021 and December 31, 2020, the Company had borrowings outstanding of $510.3 million and $512.6 million, respectively. The Company’s borrowings at June 30, 2021 were mostly from $400.0 million of 5.75% unsecured notes due June 1, 2026, £55 million in outstanding borrowings under the Company’s revolving credit facility and a commercial note of $23.8 million at the Automotive subsidiary. The Company’s borrowings at December 31, 2020 were mostly from $400.0 million of 5.75% unsecured notes due June 1, 2026, £55 million in outstanding borrowings under the Kaplan Credit Agreement and a commercial note of $25.3 million at the Automotive subsidiary. The interest on $400.0 million of 5.75% unsecured notes is payable semiannually on June 1 and December 1.

During the six months ended June 30, 2021 and 2020, the Company had average borrowings outstanding of approximately $520.0 million and $511.2 million, respectively, at average annual interest rates of approximately

34

5.0% and 5.1%, respectively. During each of the six months ended June 30, 2021 and 2020, the Company incurred net interest expense of $13.0 million.

On June 3, 2021, Moody’s affirmed the Company’s credit ratings, but revised the outlook from Negative to Stable. On April 27, 2021, Standard & Poor’s affirmed the Company’s credit rating and revised the outlook from Negative to Stable.

The Company’s current credit ratings are as follows:

	Moody’s	Standard & Poor’s
Long-term	Ba1	BB
Outlook	Stable	Stable

The Company expects to fund its estimated capital needs through existing cash balances and internally generated funds, and, as needed, from borrowings under its revolving credit facility. As of June 30, 2021, the Company had $76.2 million outstanding under the $300 million revolving credit facility, which borrowing was used to repay the £60 million Kaplan U.K. credit facility that matured at the end of June 2020. In management’s opinion, the Company will have sufficient financial resources to meet its business requirements in the next 12 months, including working capital requirements, capital expenditures, interest payments, potential acquisitions and strategic investments, dividends and stock repurchases.

In summary, the Company’s cash flows for each period were as follows:

	Six Months Ended   June 30
(In thousands)	2021		2020
Net cash provided by operating activities	$	72,845	$	121,351
Net cash (used in) provided by investing activities	(310,508)		26,651
Net cash used in financing activities	(59,175)		(78,019)
Effect of currency exchange rate change	(684)		(4,953)
Net (decrease) increase in cash and cash equivalents and restricted cash	$	(297,522)	$	65,030

Operating Activities. Cash provided by operating activities is net income adjusted for certain non-cash items and changes in assets and liabilities. The Company’s net cash flow provided by operating activities were as follows:

	Six Months Ended   June 30
(In thousands)	2021		2020
Net Income (Loss)	$	228,561	$	(15,029)
Adjustments to reconcile net income to net cash provided by operating activities:
Depreciation, amortization and goodwill and other long-lived asset impairments	65,786		96,021
Amortization of lease right-of-use asset	36,774		50,954
Net pension benefit	(45,413)		(21,409)
Other non-cash activities	(128,933)		64,776
Change in operating assets and liabilities	(83,930)		(53,962)
Net Cash Provided by Operating Activities	$	72,845	$	121,351

Net cash provided by operating activities consists primarily of cash receipts from customers, less disbursements for costs, benefits, income taxes, interest and other expenses.

For the first six months of 2021 compared to the first six months of 2020, the decrease in net cash provided by operating activities is primarily driven by lower net income, net of non-cash adjustments, and changes in operating assets and liabilities. Changes in operating assets and liabilities were primarily the result of a decrease in the collection of cash from customers that were partially offset by lower vendor payments at Code3, and changes in the income tax receivable.

35

Investing Activities. The Company’s net cash flow (used in) provided by investing activities were as follows:

	Six Months Ended   June 30
(In thousands)	2021		2020
Investments in certain businesses, net of cash acquired	$	(272,428)	$	(20,080)
Purchases of property, plant and equipment	(27,502)		(40,209)
Net (purchases of) proceeds from sales of marketable equity securities	(10,407)		93,775
Investments in equity affiliates, cost method and other investments	(4,910)		(8,011)
Other	4,739		1,176
Net Cash (Used in) Provided by Investing Activities	$	(310,508)	$	26,651

Acquisitions. During the first six months of 2021, the Company acquired all of the outstanding shares of Leaf for cash and the assumption of $9.2 million in liabilities related to their pre-acquisition stock compensation plan, which will be paid in the future. Leaf is included in other businesses. During the first six months of 2020, the Company acquired three businesses: two small businesses in its education division and an additional interest in Framebridge, Inc., which is included in other businesses. The Framebridge purchase price includes $54.3 million in deferred payments and contingent consideration based on the acquiree achieving certain revenue milestones in the future.

Capital Expenditures. Capital expenditures for the first six months of 2021 were lower than the first six months of 2020 primarily due to the postponement of noncritical capital expenditures to preserve cash resources in response to the COVID-19 pandemic. In addition, 2020 includes capital expenditures in connection with spectrum repacking at the Company’s television stations in Detroit, MI, Jacksonville, FL, and Roanoke, VA, as mandated by the FCC; these expenditures were largely reimbursed to the Company by the FCC. The amounts reflected in the Company’s Condensed Consolidated Statements of Cash Flows are based on cash payments made during the relevant periods, whereas the Company’s capital expenditures for the first six months of 2021 of $28.3 million include assets acquired during the quarter. The Company estimates that its capital expenditures will be in the range of $160 million to $170 million in 2021, including approximately $100 million in land and building purchases at Kaplan International’s sixth-form college in London, U.K. and at the Automotive division.

Net (purchases of) proceeds from sale of investments. The Company purchased $48.0 million of marketable equity securities during the first six months of 2021. During the first six months of 2021 and 2020, the Company sold marketable equity securities that generated proceeds of $37.6 million and $93.8 million, respectively.

Financing Activities. The Company’s net cash flow used in financing activities were as follows:

	Six Months Ended   June 30
(In thousands)	2021		2020
Dividends paid	$	(15,106)	$	(15,289)
Net payments on vehicle floor plan payable	(9,591)		(11,063)
Net payments under revolving credit facility	(2,304)		—
Repayments of borrowings	(2,071)		(75,206)
Issuance of borrowings	121		76,984
Common shares repurchased	—		(62,905)
Other	(30,224)		9,460
Net Cash Used in Financing Activities	$	(59,175)	$	(78,019)

Dividends. The quarterly dividend rate per share was $1.51 and $1.45 for the first six months of 2021 and 2020, respectively.

Vehicle Floor Plan Payable and Borrowings. In the first six months of 2021 and 2020, the Company used vehicle floor plan financing to fund the purchase of new and used vehicles at its Automotive division. In the first six months of 2020, the Company borrowed £60 million against the $300 million revolving credit facility and used the proceeds to repay the £60 million outstanding balance under the Kaplan Credit Agreement that matured at the end of June 2020.

Common Stock Repurchases. During the first six months of 2020, the Company purchased a total of 169,267 shares of its Class B common stock at a cost of approximately $62.9 million. On September 10, 2020, the Board of Directors authorized the Company to acquire up to 500,000 shares of its Class B common stock. The Company did not announce a ceiling price or time limit for the purchases. At June 30, 2021, the Company had remaining authorization from the Board of Directors to purchase up to 364,151 shares of Class B common stock.

36

Other. During the first six months of 2021, the Company paid $30.9 million related to contingent consideration and deferred payments from prior acquisitions, mostly for the 2020 acquisition of Framebridge. In March 2021, Hoover’s minority shareholders put their remaining outstanding shares to the Company, which had a redemption value of $3.5 million. During the first six months of 2021, the Company increased the borrowings under its cash overdraft facilities by $4.4 million. During the first six months of 2020, the Company increased the borrowings under its cash overdraft by $9.1 million and received $5.3 million in proceeds from the exercise of stock options.

There were no other significant changes to the Company’s contractual obligations or other commercial commitments from those disclosed in the Company’s Annual Report on Form 10-K for the year ended December 31, 2020.

Forward-Looking Statements

All public statements made by the Company and its representatives that are not statements of historical fact, including certain statements in this report, in the Company’s Annual Report on Form 10-K and in the Company’s 2020 Annual Report to Stockholders, are “forward-looking statements” within the meaning of the Private Securities Litigation Reform Act of 1995. Actual results may differ materially from those projected as a result of certain risks and uncertainties, including but not limited to the duration and severity of the COVID-19 pandemic and its effects on the Company’s operations, financial results, liquidity and cash flows. Other forward-looking statements include comments about expectations related to acquisitions or dispositions or related business activities, including the TOSA, the Company’s business strategies and objectives, anticipated results of license renewal applications, the prospects for growth in the Company’s various business operations and the Company’s future financial performance. As with any projection or forecast, forward-looking statements are subject to various risks and uncertainties, including the risks and uncertainties described in Item 1A of the Company’s Annual Report on Form 10-K, that could cause actual results or events to differ materially from those anticipated in such statements. Accordingly, undue reliance should not be placed on any forward-looking statement made by or on behalf of the Company. The Company assumes no obligation to update any forward-looking statement after the date on which such statement is made, even if new information subsequently becomes available.

Item 3. Quantitative and Qualitative Disclosures about Market Risk.

The Company is exposed to market risk in the normal course of its business due primarily to its ownership of marketable equity securities, which are subject to equity price risk; to its borrowing and cash-management activities, which are subject to interest rate risk; and to its foreign business operations, which are subject to foreign exchange rate risk. The Company’s market risk disclosures set forth in its 2020 Annual Report filed on Form 10-K have not otherwise changed significantly.

Item 4. Controls and Procedures.

(a) Evaluation of Disclosure Controls and Procedures

An evaluation was performed by the Company’s management, with the participation of the Company’s Chief Executive Officer (principal executive officer) and the Company’s Chief Financial Officer (principal financial officer), of the effectiveness of the Company’s disclosure controls and procedures (as defined in Exchange Act Rules 13a-15(e) and 15d-15(e)), as of June 30, 2021. Based on that evaluation, the Company’s Chief Executive Officer and Chief Financial Officer have concluded that the Company’s disclosure controls and procedures, as designed and implemented, are effective in ensuring that information required to be disclosed by the Company in the reports that it files or submits under the Exchange Act is recorded, processed, summarized and reported, within the time periods specified in the Securities and Exchange Commission’s rules and forms and is accumulated and communicated to management, including the Chief Executive Officer and Chief Financial Officer, in a manner that allows timely decisions regarding required disclosure.

(b) Changes in Internal Control Over Financial Reporting

There has been no change in the Company’s internal control over financial reporting during the quarter ended June 30, 2021 that has materially affected, or is reasonably likely to materially affect, the Company’s internal control over financial reporting.

37

PART II. OTHER INFORMATION

Item 6. Exhibits.

Exhibit Number	Description
3.1	Restated Certificate of Incorporation of the Company dated November 13, 2003 (incorporated by reference to Exhibit 3.1 to the Company’s Annual Report on Form 10-K for the fiscal year ended December 28, 2003).
3.2	Certificate of Amendment, effective November 29, 2013, to the Restated Certificate of Incorporation of the Company (incorporated by reference to Exhibit 3.1 to the Company’s current Report on Form 8-K dated November 29, 2013).
3.3	By-Laws of the Company as amended and restated through November 29, 2013 (incorporated by reference to Exhibit 3.2 to the Company’s Current Report on Form 8-K dated November 29, 2013).
4.1	Senior Notes Indenture dated as of May 30, 2018, between the Company and The Bank of New York Mellon Trust Company, N.A., as Trustee (incorporated by reference to Exhibit 4.1 to the Company’s Current Report on Form 8-K dated May 30, 2018).
4.2	First Supplemental Indenture, dated as of March 24, 2020, among Graham Healthcare Group, Inc., a Delaware corporation, a subsidiary of the Company, and The Bank of New York Mellon Trust Company, N.A., as trustee (incorporated by reference to Exhibit 4.2 to the Company’s Quarterly Report on Form 10-Q for the quarter ended March 31, 2020).
31.1	Rule 13a-14(a)/15d-14(a) Certification of the Chief Executive Officer.
31.2	Rule 13a-14(a)/15d-14(a) Certification of the Chief Financial Officer.
32	Section 1350 Certification of the Chief Executive Officer and the Chief Financial Officer. *
101.INS	Inline XBRL Instance Document - the instance document does not appear in the Interactive Data File because its XBRL tags are embedded within the Inline XBRL document
101.SCH	Inline XBRL Taxonomy Extension Schema Document
101.CAL	Inline XBRL Taxonomy Extension Calculation Linkbase Document
101.DEF	Inline XBRL Taxonomy Extension Definition Linkbase Document
101.LAB	Inline XBRL Taxonomy Extension Label Linkbase Document
101.PRE	Inline XBRL Taxonomy Extension Presentation Linkbase Document
104	Cover Page Interactive Data File, formatted in Inline XBRL and included as Exhibit 101

*     Furnished herewith.

38

SIGNATURES

Pursuant to the requirements of the Securities Exchange Act of 1934, the registrant has duly caused this report to be signed on its behalf by the undersigned thereunto duly authorized.

	GRAHAM HOLDINGS COMPANY
	(Registrant)
Date: August 4, 2021	/s/ Timothy J. O’Shaughnessy
	Timothy J. O’Shaughnessy, President & Chief Executive Officer (Principal Executive Officer)
Date: August 4, 2021	/s/ Wallace R. Cooney
	Wallace R. Cooney, Chief Financial Officer (Principal Financial Officer)

39

EX-31.1

Exhibit 31.1

RULE 13a-14(a)/15d-14(a) CERTIFICATION OF THE CHIEF EXECUTIVE OFFICER

AS ADOPTED PURSUANT TO SECTION 302 OF THE SARBANES-OXLEY ACT OF 2002

I, Timothy J. O’Shaughnessy, Chief Executive Officer (principal executive officer) of Graham Holdings Company (the “Registrant”), certify that:

1.I have reviewed this quarterly report on Form 10-Q of the Registrant;

2.Based on my knowledge, this report does not contain any untrue statement of a material fact or omit to state a material fact necessary to make the statements made, in light of the circumstances under which such statements were made, not misleading with respect to the period covered by this report;

3.Based on my knowledge, the financial statements, and other financial information included in this report, fairly present in all material respects the financial condition, results of operations and cash flows of the Registrant as of, and for, the periods presented in this report;

4.The Registrant’s other certifying officer and I are responsible for establishing and maintaining disclosure controls and procedures (as defined in Exchange Act Rules 13a-15(e) and 15d-15(e)) and internal control over financial reporting (as defined in Exchange Act Rules 13a-15(f) and 15d-15(f)) for the Registrant and have:

(a)Designed such disclosure controls and procedures, or caused such disclosure controls and procedures to be designed under our supervision, to ensure that material information relating to the Registrant, including its consolidated subsidiaries, is made known to us by others within those entities, particularly during the period in which this report is being prepared;

(b)Designed such internal control over financial reporting, or caused such internal control over financial reporting to be designed under our supervision, to provide reasonable assurance regarding the reliability of financial reporting and the preparation of financial statements for external purposes in accordance with generally accepted accounting principles;

(c)Evaluated the effectiveness of the Registrant’s disclosure controls and procedures and presented in this report our conclusions about the effectiveness of the disclosure controls and procedures, as of the end of the period covered by this report based on such evaluation; and

(d)Disclosed in this report any change in the Registrant’s internal control over financial reporting that occurred during the Registrant’s most recent fiscal quarter (the Registrant’s fourth fiscal quarter in the case of an annual report) that has materially affected, or is reasonably likely to materially affect, the Registrant’s internal control over financial reporting; and

5.The Registrant’s other certifying officer and I have disclosed, based on our most recent evaluation of internal control over financial reporting, to the Registrant’s auditors and the audit committee of Registrant’s board of directors (or persons performing the equivalent functions):

(a)All significant deficiencies and material weaknesses in the design or operation of internal control over financial reporting which are reasonably likely to adversely affect the Registrant’s ability to record, process, summarize and report financial information; and

(b)Any fraud, whether or not material, that involves management or other employees who have a significant role in the Registrant’s internal control over financial reporting.

/s/ Timothy J. O’Shaughnessy

Timothy J. O’Shaughnessy

Chief Executive Officer

August 4, 2021

EX-31.2

Exhibit 31.2

RULE 13a-14(a)/15d-14(a) CERTIFICATION OF THE CHIEF FINANCIAL OFFICER

AS ADOPTED PURSUANT TO SECTION 302 OF THE SARBANES-OXLEY ACT OF 2002

I, Wallace R. Cooney, Chief Financial Officer (principal financial officer) of Graham Holdings Company (the “Registrant”), certify that:

1.I have reviewed this quarterly report on Form 10-Q of the Registrant;

2.Based on my knowledge, this report does not contain any untrue statement of a material fact or omit to state a material fact necessary to make the statements made, in light of the circumstances under which such statements were made, not misleading with respect to the period covered by this report;

3.Based on my knowledge, the financial statements, and other financial information included in this report, fairly present in all material respects the financial condition, results of operations and cash flows of the Registrant as of, and for, the periods presented in this report;

4.The Registrant’s other certifying officer and I are responsible for establishing and maintaining disclosure controls and procedures (as defined in Exchange Act Rules 13a-15(e) and 15d-15(e)) and internal control over financial reporting (as defined in Exchange Act Rules 13a-15(f) and 15d-15(f)) for the Registrant and have:

(a)Designed such disclosure controls and procedures, or caused such disclosure controls and procedures to be designed under our supervision, to ensure that material information relating to the Registrant, including its consolidated subsidiaries, is made known to us by others within those entities, particularly during the period in which this report is being prepared;

(b)Designed such internal control over financial reporting, or caused such internal control over financial reporting to be designed under our supervision, to provide reasonable assurance regarding the reliability of financial reporting and the preparation of financial statements for external purposes in accordance with generally accepted accounting principles;

(c)Evaluated the effectiveness of the Registrant’s disclosure controls and procedures and presented in this report our conclusions about the effectiveness of the disclosure controls and procedures, as of the end of the period covered by this report based on such evaluation; and

(d)Disclosed in this report any change in the Registrant’s internal control over financial reporting that occurred during the Registrant’s most recent fiscal quarter (the Registrant’s fourth fiscal quarter in the case of an annual report) that has materially affected, or is reasonably likely to materially affect, the Registrant’s internal control over financial reporting; and

5.The Registrant’s other certifying officer and I have disclosed, based on our most recent evaluation of internal control over financial reporting, to the Registrant’s auditors and the audit committee of Registrant’s board of directors (or persons performing the equivalent functions):

(a)All significant deficiencies and material weaknesses in the design or operation of internal control over financial reporting which are reasonably likely to adversely affect the Registrant’s ability to record, process, summarize and report financial information; and

(b)Any fraud, whether or not material, that involves management or other employees who have a significant role in the Registrant’s internal control over financial reporting.

/s/ Wallace R. Cooney

Wallace R. Cooney

Chief Financial Officer

August 4, 2021

EX-32

Exhibit 32

SECTION 1350 CERTIFICATION OF THE CHIEF EXECUTIVE OFFICER AND THE CHIEF FINANCIAL

OFFICER

AS ADOPTED PURSUANT TO SECTION 906 OF THE SARBANES-OXLEY ACT OF 2002

In connection with the Quarterly Report of Graham Holdings Company (the “Company”) on Form 10-Q for the period ended June 30, 2021 (the “Report”), Timothy J. O’Shaughnessy, Chief Executive Officer (principal executive officer) of the Company and Wallace R. Cooney, Chief Financial Officer (principal financial officer) of the Company, each hereby certifies, pursuant to 18 U.S.C. Section 1350, as adopted pursuant to Section 906 of the Sarbanes-Oxley Act of 2002, that:

(1)The Report fully complies with the requirements of Section 13(a) or 15(d) of the Securities Exchange Act of 1934; and

(2)The information contained in the Report fairly presents, in all material respects, the financial condition and results of operations of the Company.

/s/ Timothy J. O’Shaughnessy

Timothy J. O’Shaughnessy

Chief Executive Officer

August 4, 2021

/s/ Wallace R. Cooney

Wallace R. Cooney

Chief Financial Officer

August 4, 2021

XML

Cover Page - shares	6 Months Ended
	Jun. 30, 2021	Jul. 30, 2021
Document Type	10-Q
Document Quarterly Report	true
Document Period End Date	Jun. 30, 2021
Document Transition Report	false
Entity File Number	001-06714
Entity Registrant Name	GRAHAM HOLDINGS CO
Entity Incorporation, State or Country Code	DE
Entity Tax Identification Number	53-0182885
Entity Address, Address Line One	1300 North 17th Street
Entity Address, City or Town	Arlington
Entity Address, State or Province	VA
Entity Address, Postal Zip Code	22209
City Area Code	703
Local Phone Number	345-6300
Title of 12(b) Security	Class B Common Stock, par value $1.00 per share
Trading Symbol	GHC
Security Exchange Name	NYSE
Entity Current Reporting Status	Yes
Entity Interactive Data Current	Yes
Entity Filer Category	Large Accelerated Filer
Entity Small Business	false
Entity Emerging Growth Company	false
Entity Shell Company	false
Entity Central Index Key	0000104889
Current Fiscal Year End Date	--12-31
Document Fiscal Year Focus	2021
Document Fiscal Period Focus	Q2
Amendment Flag	false
Class A Common Stock [Member]
Entity Common Stock, Shares Outstanding		964,001
Class B Common Stock [Member]
Entity Common Stock, Shares Outstanding		4,037,461

XML

Condensed Consolidated Statements of Operations (Unaudited) - USD ($) shares in Thousands, $ in Thousands	3 Months Ended		6 Months Ended
	Jun. 30, 2021	Jun. 30, 2020	Jun. 30, 2021	Jun. 30, 2020
Operating Revenues
Operating Revenues	$ 801,152	$ 652,871	$ 1,513,607	$ 1,385,128
Operating Costs and Expenses
Selling, general and administrative	195,429	162,840	371,290	339,992
Depreciation of property, plant and equipment	16,600	22,913	33,145	39,617
Amortization of intangible assets	13,889	14,327	27,826	28,492
Impairment of goodwill and other long-lived assets	3,768	11,511	4,815	27,912
Total Operating Costs and Expenses	763,561	646,994	1,442,172	1,371,166
Income from Operations	37,591	5,877	71,435	13,962
Equity in earnings (losses) of affiliates, net	1,776	1,182	15,204	(365)
Interest income	1,876	954	2,766	2,105
Interest expense	(7,353)	(7,377)	(15,801)	(15,055)
Non-operating pension and postretirement benefit income, net	25,216	12,136	54,003	30,539
Gain (loss) on marketable equity securities, net	83,698	39,890	162,912	(60,503)
Other income, net	16,122	8,100	22,442	10,788
Income (Loss) Before Income Taxes	158,926	60,762	312,961	(18,529)
Provision for (Benefit from) Income Taxes	43,000	41,900	84,400	(3,500)
Net Income (Loss)	115,926	18,862	228,561	(15,029)
Net (Income) Loss Attributable to Noncontrolling Interests	(568)	(8)	(753)	638
Net Income (Loss) Attributable to Graham Holdings Company Common Stockholders	$ 115,358	$ 18,854	$ 227,808	$ (14,391)
Per Share Information Attributable to Graham Holdings Company Common Stockholders
Basic net income (loss) per common share (in USD per share)	$ 23.07	$ 3.61	$ 45.55	$ (2.77)
Basic average number of common shares outstanding (in shares)	4,968	5,196	4,968	5,235
Diluted net income (loss) per common share (in USD per share)	$ 22.99	$ 3.60	$ 45.43	$ (2.77)
Diluted average number of common shares outstanding (in shares)	4,985	5,201	4,981	5,235
Services [Member]
Operating Revenues
Operating Revenues	$ 511,037	$ 483,595	$ 994,706	$ 1,000,232
Operating Costs and Expenses
Cost of services and goods	306,983	298,578	599,417	631,627
Goods [Member]
Operating Revenues
Operating Revenues	290,115	169,276	518,901	384,896
Operating Costs and Expenses
Cost of services and goods	$ 226,892	$ 136,825	$ 405,679	$ 303,526

XML

Condensed Consolidated Statements of Comprehensive Income (Loss) (Unaudited) - USD ($) $ in Thousands	3 Months Ended		6 Months Ended
	Jun. 30, 2021	Jun. 30, 2020	Jun. 30, 2021	Jun. 30, 2020
Statement of Comprehensive Income [Abstract]
Net Income (Loss)	$ 115,926	$ 18,862	$ 228,561	$ (15,029)
Foreign currency translation adjustments:
Translation adjustments arising during the period	1,167	16,405	681	(20,971)
Pension and other postretirement plans:
Amortization of net prior service cost included in net income	792	668	1,584	1,339
Amortization of net actuarial (gain) loss included in net income	(924)	390	(3,353)	610
Total pension and other postretirement plans, before tax	(132)	1,058	(1,769)	1,949
Cash flow hedges gain (loss)	13	(143)	634	(1,721)
Other Comprehensive Income (Loss), Before Tax	1,048	17,320	(454)	(20,743)
Income tax expense (benefit) related to items of other comprehensive incme (loss)	32	(252)	331	(132)
Other Comprehensive Income (Loss), Net of Tax	1,080	17,068	(123)	(20,875)
Comprehensive Income (Loss)	117,006	35,930	228,438	(35,904)
Comprehensive (income) loss attributable to noncontrolling interests	(568)	(8)	(753)	638
Total Comprehensive Income (Loss) Attributable to Graham Holdings Company	$ 116,438	$ 35,922	$ 227,685	$ (35,266)

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Condensed Consolidated Balance Sheets - USD ($) $ in Thousands	Jun. 30, 2021	Dec. 31, 2020
Current Assets
Cash and cash equivalents	$ 114,802	$ 413,991
Restricted cash	9,982	9,063
Investments in marketable equity securities and other investments	765,740	587,582
Accounts receivable, net	516,483	537,156
Inventories and contracts in progress	126,395	120,622
Prepaid expenses	82,633	75,523
Income taxes receivable	16,947	29,313
Other current assets	7,631	942
Total Current Assets	1,640,613	1,774,192
Property, Plant and Equipment, Net	373,471	378,286
Lease Right-of-Use Assets	444,082	462,560
Investments in Affiliates	164,203	155,777
Goodwill, Net	1,653,607	1,484,750
Indefinite-Lived Intangible Assets	121,417	120,437
Amortized Intangible Assets, Net	264,408	204,646
Prepaid Pension Cost	1,750,588	1,708,305
Deferred Income Taxes	7,124	8,396
Deferred Charges and Other Assets (includes $748 and $0 of restricted cash)	157,029	146,770
Total Assets	6,576,542	6,444,119
Current Liabilities
Accounts payable and accrued liabilities	512,409	520,236
Deferred revenue	284,013	331,021
Income taxes payable	8,236	5,140
Current portion of lease liabilities	86,143	86,797
Current portion of long-term debt	4,248	6,452
Dividends declared	7,553	0
Total Current Liabilities	902,602	949,646
Accrued Compensation and Related Benefits	203,296	201,918
Other Liabilities	32,511	48,768
Deferred Income Taxes	531,350	521,274
Mandatorily Redeemable Noncontrolling Interest	9,332	9,240
Lease Liabilities	407,740	428,849
Long-Term Debt	506,079	506,103
Total Liabilities	2,592,910	2,665,798
Redeemable Noncontrolling Interests	7,720	11,928
Preferred Stock	0	0
Common Stockholders’ Equity
Common stock	20,000	20,000
Capital in excess of par value	386,882	388,159
Retained earnings	7,009,971	6,804,822
Accumulated other comprehensive income, net of taxes
Cumulative foreign currency translation adjustment	10,435	9,754
Unrealized gain on pensions and other postretirement plans	593,996	595,287
Cash flow hedges	(1,240)	(1,727)
Cost of Class B common stock held in treasury	(4,051,958)	(4,056,993)
Total Common Stockholders’ Equity	3,968,086	3,759,302
Noncontrolling Interests	7,826	7,091
Total Equity	3,975,912	3,766,393
Total Liabilities and Equity	$ 6,576,542	$ 6,444,119

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Condensed Consolidated Balance Sheet (Parentheticals) - USD ($) $ in Thousands	Jun. 30, 2021	Dec. 31, 2020
Statement of Financial Position [Abstract]
Restricted Cash, Noncurrent	$ 748	$ 0

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Condensed Consolidated Statements of Cash Flows (Unaudited) - USD ($)	6 Months Ended
	Jun. 30, 2021	Jun. 30, 2020
Cash Flows from Operating Activities
Net Income (Loss)	$ 228,561,000	$ (15,029,000)
Adjustments to reconcile net income (loss) to net cash provided by operating activities:
Depreciation, amortization and goodwill and other long-lived asset impairments	65,786,000	96,021,000
Amortization of lease right-of-use asset	36,774,000	50,954,000
Net pension benefit	(45,413,000)	(21,409,000)
(Gain) loss on marketable equity securities and cost method investments, net	(165,257,000)	60,509,000
Gain on disposition and write-down of businesses, property, plant and equipment and investments, net	(15,080,000)	(5,444,000)
Provision for doubtful trade receivables	2,506,000	7,241,000
Stock-based compensation expense, net	3,060,000	3,135,000
Foreign exchange gain	(680,000)	(3,220,000)
Equity in (earnings) losses of affiliates, net of distributions	(5,053,000)	4,263,000
Provision for (benefit from) deferred income taxes	52,856,000	(1,349,000)
Accretion expense and change in fair value of contingent consideration liabilities	(2,679,000)	0
Change in operating assets and liabilities:
Accounts receivable, net	38,541,000	164,314,000
Inventories	(4,971,000)	2,840,000
Accounts payable and accrued liabilities	(15,592,000)	(99,496,000)
Deferred revenue	(61,591,000)	(69,105,000)
Income taxes receivable	10,681,000	(6,434,000)
Lease liabilitites	(41,655,000)	(43,697,000)
Other assets and other liabilities, net	(9,343,000)	(2,384,000)
Other	1,394,000	(359,000)
Net Cash Provided by Operating Activities	72,845,000	121,351,000
Cash Flows from Investing Activities
Investments in certain businesses, net of cash acquired	(272,428,000)	(20,080,000)
Purchases of marketable equity securities	(48,036,000)	0
Purchases of property, plant and equipment	(27,502,000)	(40,209,000)
Proceeds from sales of marketable equity securities	37,629,000	93,775,000
Investments in equity affiliates, cost method and other investments	(4,910,000)	(8,011,000)
Net proceeds from disposition of businesses, property, plant and equipment and investments	4,735,000	862,000
Return of investment in equity affiliates	4,000	314,000
Net Cash (Used in) Provided by Investing Activities	(310,508,000)	26,651,000
Cash Flows from Financing Activities
Deferred payments of acquisition	(30,866,000)	(5,010,000)
Dividends paid	(15,106,000)	(15,289,000)
Net proceeds from vehicle floor plan payable	(9,591,000)	(11,063,000)
Proceeds from bank overdrafts	4,433,000	9,135,000
Purchase of noncontrolling interest	(3,508,000)	0
Net payments under revolving credit facilities	(2,304,000)	0
Repayments of borrowings	(2,071,000)	(75,206,000)
Issuance of borrowings	121,000	76,984,000
Common shares repurchased	0	(62,905,000)
Proceeds from exercise of stock options	0	5,335,000
Other	(283,000)	0
Net Cash Used in Financing Activities	(59,175,000)	(78,019,000)
Effect Of Currency Exchange Rate Change	(684,000)	(4,953,000)
Net (Decrease) Increase in Cash and Cash Equivalents and Restricted Cash	(297,522,000)	65,030,000
Beginning Cash and Cash Equivalents and Restricted Cash	423,054,000	214,044,000
Ending Cash and Cash Equivalents and Restricted Cash	$ 125,532,000	$ 279,074,000

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Condensed Consolidated Statements of Changes in Common Stockholders' Equity Statement - USD ($) $ in Thousands	Total	Common Stock [Member]	Additional Paid-in Capital [Member]	Retained Earnings [Member]	AOCI Attributable to Parent [Member]	Treasury Stock [Member]	Noncontrolling Interest [Member]
As of at Dec. 31, 2019	$ 3,326,796	$ 20,000	$ 381,669	$ 6,534,427	$ 303,295	$ (3,920,152)	$ 7,557
Increase (Decrease) in Stockholders' Equity [Roll Forward]
Net income (loss) for the period	(33,891)			(33,891)
Net (income) loss attributable to noncontrolling interest	0			772			(772)
Net income (loss) attributable to redeemable noncontrolling interests	(126)			(126)
Dividends on common stock	(15,289)			(15,289)
Repurchase of Class B Common Stock	(33,610)					(33,610)
Issuance of Class B common stock, net of restricted stock award forfeitures	5,335					5,335
Amortization of unearned stock compensation and stock option expense	1,568		1,568
Other comprehensive income (loss), net of income taxes	(37,943)				(37,943)
As of at Mar. 31, 2020	3,212,840	20,000	383,237	6,485,893	265,352	(3,948,427)	6,785
As of at Dec. 31, 2019	5,655
Increase (Decrease) in Temporary Equity [Roll Forward]
Net income (loss) attributable to redeemable noncontrolling interests	126
As of at Mar. 31, 2020	5,781
As of at Dec. 31, 2019	3,326,796	20,000	381,669	6,534,427	303,295	(3,920,152)	7,557
Increase (Decrease) in Stockholders' Equity [Roll Forward]
Net income (loss) for the period	(15,029)
Other comprehensive income (loss), net of income taxes	(20,875)
As of at Jun. 30, 2020	3,213,416	20,000	384,804	6,497,166	282,420	(3,977,722)	6,748
As of at Dec. 31, 2019	5,655
As of at Jun. 30, 2020	11,831
As of at Mar. 31, 2020	3,212,840	20,000	383,237	6,485,893	265,352	(3,948,427)	6,785
Increase (Decrease) in Stockholders' Equity [Roll Forward]
Net income (loss) for the period	18,862			18,862
Net (income) loss attributable to noncontrolling interest	0			37			(37)
Acquisition of redeemable noncontrolling interest	0
Net income (loss) attributable to redeemable noncontrolling interests	(45)			(45)
Dividends on common stock	(7,581)			(7,581)
Repurchase of Class B Common Stock	(29,295)					(29,295)
Amortization of unearned stock compensation and stock option expense	1,567		1,567
Other comprehensive income (loss), net of income taxes	17,068				17,068
As of at Jun. 30, 2020	3,213,416	20,000	384,804	6,497,166	282,420	(3,977,722)	6,748
As of at Mar. 31, 2020	5,781
Increase (Decrease) in Temporary Equity [Roll Forward]
Acquisition of redeemable noncontrolling interest	6,005
Net income (loss) attributable to redeemable noncontrolling interests	45
As of at Jun. 30, 2020	11,831
As of at Dec. 31, 2020	3,766,393	20,000	388,159	6,804,822	603,314	(4,056,993)	7,091
Increase (Decrease) in Stockholders' Equity [Roll Forward]
Net income (loss) for the period	112,635			112,635
Net (income) loss attributable to noncontrolling interest	0			(185)			185
Change in redemption value of redeemable noncontrolling interest	761		697				64
Distribution to noncontrolling interest	(126)						(126)
Dividends on common stock	(15,106)			(15,106)
Issuance of Class B common stock, net of restricted stock award forfeitures	(104)		(5,188)			5,084
Amortization of unearned stock compensation and stock option expense	1,589		1,589
Other comprehensive income (loss), net of income taxes	(1,203)				(1,203)
Purchase of redeemable noncontrolling interest	0
As of at Mar. 31, 2021	3,864,839	20,000	385,257	6,902,166	602,111	(4,051,909)	7,214
As of at Dec. 31, 2020	11,928
Increase (Decrease) in Temporary Equity [Roll Forward]
Change in redemption value of redeemable noncontrolling interests	(634)
Purchase of redeemable noncontrolling interest	(3,508)
As of at Mar. 31, 2021	7,786
As of at Dec. 31, 2020	3,766,393	20,000	388,159	6,804,822	603,314	(4,056,993)	7,091
Increase (Decrease) in Stockholders' Equity [Roll Forward]
Net income (loss) for the period	228,561
Other comprehensive income (loss), net of income taxes	(123)
As of at Jun. 30, 2021	3,975,912	20,000	386,882	7,009,971	603,191	(4,051,958)	7,826
As of at Dec. 31, 2020	11,928
As of at Jun. 30, 2021	7,720
As of at Mar. 31, 2021	3,864,839	20,000	385,257	6,902,166	602,111	(4,051,909)	7,214
Increase (Decrease) in Stockholders' Equity [Roll Forward]
Net income (loss) for the period	115,926			115,926
Net (income) loss attributable to noncontrolling interest	0			(699)			699
Net income (loss) attributable to redeemable noncontrolling interests	131			131
Change in redemption value of redeemable noncontrolling interest	65						65
Distribution to noncontrolling interest	(152)						(152)
Dividends on common stock	(7,553)			(7,553)
Issuance of Class B common stock, net of restricted stock award forfeitures	(96)		(47)			(49)
Amortization of unearned stock compensation and stock option expense	1,672		1,672
Other comprehensive income (loss), net of income taxes	1,080				1,080
As of at Jun. 30, 2021	3,975,912	$ 20,000	$ 386,882	$ 7,009,971	$ 603,191	$ (4,051,958)	$ 7,826
As of at Mar. 31, 2021	7,786
Increase (Decrease) in Temporary Equity [Roll Forward]
Net income (loss) attributable to redeemable noncontrolling interests	(131)
Change in redemption value of redeemable noncontrolling interests	65
As of at Jun. 30, 2021	$ 7,720

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Organization, Basis of Presentation and Recent Accounting Pronouncements

6 Months Ended

Jun. 30, 2021

Organization, Consolidation and Presentation of Financial Statements [Abstract]

Organization, Basis of Presentation and Recent Accounting Pronouncements

ORGANIZATION, BASIS OF PRESENTATION AND RECENT ACCOUNTING PRONOUNCEMENTS

Graham Holdings Company (the Company), is a diversified education and media company. The Company’s Kaplan subsidiary provides a wide variety of educational services, both domestically and outside the United States (U.S.). The Company’s media operations comprise the ownership and operation of seven television broadcasting stations, several websites and print publications, podcast content and a marketing solutions provider. The Company’s other business operations include manufacturing, automotive dealerships, consumer internet brands, restaurants and entertainment venues, custom framing services and home health and hospice services.

Basis of Presentation – The accompanying condensed consolidated financial statements have been prepared in accordance with: (i) generally accepted accounting principles in the United States of America (GAAP) for interim financial information; (ii) the instructions to Form 10-Q; and (iii) the guidance of Rule 10-01 of Regulation S-X under the Securities and Exchange Act of 1934, as amended, for financial statements required to be filed with the Securities and Exchange Commission (SEC). They include the assets, liabilities, results of operations and cash flows of the Company, including its domestic and foreign subsidiaries that are more than 50% owned or otherwise controlled by the Company. As permitted under such rules, certain notes and other financial information normally required by GAAP have been condensed or omitted. Management believes the accompanying condensed consolidated financial statements reflect all normal and recurring adjustments necessary for a fair statement of the Company’s financial position, results of operations, and cash flows as of and for the periods presented herein. The Company’s results of operations for the three and six months ended June 30, 2021 and 2020 may not be indicative of the Company’s future results. These condensed consolidated financial statements are unaudited and should be read in conjunction with the Company’s audited consolidated financial statements and the notes thereto included in the Company’s Annual Report on Form 10-K for the fiscal year ended December 31, 2020.

The year-end condensed consolidated balance sheet data was derived from audited financial statements, but does not include all disclosures required by GAAP.

Use of Estimates in the Preparation of the Condensed Consolidated Financial Statements – The preparation of the condensed consolidated financial statements in conformity with GAAP requires management to make estimates and judgments that affect the amounts reported herein. Management bases its estimates and assumptions on historical experience and on various other factors that are believed to be reasonable under the circumstances. Due to the inherent uncertainty involved in making estimates, actual results reported in future periods may be affected by changes in those estimates.

The Company assessed certain accounting matters that generally require consideration of forecasted financial information, in context with the information reasonably available to the Company and the unknown future impacts of the novel coronavirus (COVID-19) pandemic as of June 30, 2021 and through the date of this filing. The accounting matters assessed included, but were not limited to, the Company’s carrying value of goodwill and other long-lived assets, allowance for doubtful accounts, inventory valuation and related reserves, fair value of financial assets, valuation allowances for tax assets and revenue recognition. Other than the other long-lived asset impairment charges (see Note 8), there were no other impacts to the Company’s condensed consolidated financial statements as of and for the six months ended June 30, 2021 resulting from our assessments. The Company’s assessments as of and for the six months ended June 30, 2020 resulted in goodwill, indefinite-lived asset and other long-lived asset impairment charges (see Note 6 and Note 8). The Company’s future assessment of the magnitude and duration of COVID-19, as well as other factors, could result in material impacts to the Company’s condensed consolidated financial statements in future reporting periods.

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Acquisitions and Dispositions of Businesses

6 Months Ended

Jun. 30, 2021

Acquisitions And Dispositions [Abstract]

Acquisitions and Dispositions of Businesses

ACQUISITIONS AND DISPOSITIONS OF BUSINESSES

Acquisitions. On June 14, 2021, the Company acquired all of the outstanding common shares of Leaf Group Ltd. (Leaf) for $308.6 million in cash and the assumption of $9.2 million in liabilities related to their previous stock compensation plan, which will be paid in the future. Leaf is a consumer internet company that builds creator-driven brands in lifestyle and home and art design categories. The acquisition is expected to provide benefits in the future by diversifying the Company’s business operations and providing operating synergies with other business units. The Company includes Leaf in other businesses.

During 2020, the Company acquired three businesses: two in education and one in other businesses for $96.8 million in cash and contingent consideration. The assets and liabilities of the companies acquired were recorded at their estimated fair values at the date of acquisition.

In the first three months of 2020, Kaplan acquired two small businesses; one in its supplemental education division and one in its international division.

In May 2020, the Company acquired an additional interest in Framebridge, Inc. for cash and contingent consideration that resulted in the Company obtaining control of the investee. Following the acquisition, the Company owns 93.4% of Framebridge. The Company previously accounted for Framebridge under the equity method, and included it in Investments in Affiliates on the Condensed Consolidated Balance Sheet (see Note 3). The contingent consideration is primarily based on Framebridge achieving revenue milestones within a specific time period. The fair value of the contingent consideration at the acquisition date was $50.6 million, determined using a Monte Carlo simulation. The fair value of the redeemable noncontrolling interest in Framebridge was $6.0 million as of the acquisition date, determined using a market approach. The minority shareholder has an option to put 20% of the minority shares annually starting in 2024. The acquisition is expected to provide benefits in the future by diversifying the Company’s business operations and is included in other businesses.

Acquisition-related costs for acquisitions that closed during the first six months of 2021 and 2020 were $1.4 million and $1.1 million, respectively, and were expensed as incurred. The aggregate purchase price of the 2021 and 2020 acquisitions was allocated as follows (2021 on a preliminary basis), based on acquisition date fair values to the following assets and liabilities:

	Purchase Price Allocation
	Six Months Ended		Year Ended
(in thousands)	June 30, 2021		December 31, 2020
Accounts receivable	$	16,080	$	745
Inventory	777		3,496
Property, plant and equipment	6,229		3,346
Lease right-of-use assets	7,744		6,580
Goodwill	167,098		73,951
Amortized intangible assets	88,000		14,589
Other assets	4,507		975
Deferred income taxes	40,850		15,958
Other liabilities	(49,797)		(14,917)
Current and noncurrent lease liabilities	(7,742)		(6,593)
Redeemable noncontrolling interest	—		(6,005)
Aggregate purchase price, net of cash acquired	$	273,746	$	92,125

The 2021 fair values recorded were based upon preliminary valuations and the estimates and assumptions used in such valuations are subject to change within the measurement period (up to one year from the acquisition date). The recording of deferred tax assets and liabilities, and the amounts of residual goodwill and other intangibles are not yet finalized. Goodwill is calculated as the excess of the consideration transferred over the net assets recognized and represents the estimated future economic benefits arising from other assets acquired that could not be individually identified and separately recognized. The goodwill recorded due to these acquisitions is attributable to the assembled workforces of the acquired companies and expected synergies. The Company expects to deduct $43.4 million and $3.2 million of goodwill for income tax purposes for the acquisitions completed in 2021 and 2020, respectively.

The acquired companies were consolidated into the Company’s financial statements starting on their respective acquisition dates. The following unaudited pro forma financial information presents the Company’s results as if the current year acquisitions had occurred at the beginning of 2020. The unaudited pro forma information also includes the 2020 acquisitions as if they occurred at the beginning of 2019:

	Three Months Ended   June 30				Six Months Ended   June 30
(in thousands)	2021		2020		2021		2020
Operating revenues	$	841,966	$	704,738	$	1,606,299	$	1,475,834
Net income (loss)	111,086		13,129		217,821		(36,427)

These pro forma results were based on estimates and assumptions, which the Company believes are reasonable, and include the historical results of operations of the acquired companies and adjustments for depreciation and amortization of identified assets and the effect of pre-acquisition transaction related expenses incurred by the Company and the acquired entities. The pro forma information does not include efficiencies, cost reductions and synergies expected to result from the acquisitions. They are not the results that would have been realized had these

entities been part of the Company during the periods presented and are not necessarily indicative of the Company’s consolidated results of operations in future periods.

Sale of Businesses. In December 2020, the Company completed the sale of Megaphone which was included in other businesses.

Other Transactions. In March 2021, Hoover’s minority shareholders put the remaining outstanding shares to the Company, which had a redemption value of $3.5 million. Following the redemption, the Company owns 100% of Hoover.

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Investments

6 Months Ended

Jun. 30, 2021

Investments [Abstract]

Investments

INVESTMENTS

Money Market Investments. As of June 30, 2021 the Company had no money market investments, compared to $268.8 million at December 31, 2020, that are classified as cash and cash equivalents in the Company’s Condensed Consolidated Balance Sheets.

Investments in Marketable Equity Securities. Investments in marketable equity securities consist of the following:

	As of
	June 30, 2021		December 31, 2020
(in thousands)
Total cost	$	276,532	$	232,847
Gross unrealized gains	474,908		340,255
Total Fair Value	$	751,440	$	573,102

At June 30, 2021 and December 31, 2020, the Company owned 44,430 shares and 28,000 shares, respectively, in Markel Corporation (Markel) valued at $52.7 million and $28.9 million, respectively. The Co-Chief Executive Officer of Markel, Mr. Thomas S. Gayner, is a member of the Company’s Board of Directors. As of June 30, 2021, there was no marketable equity security holding that exceeded 5% of the Company’s total assets.

The Company purchased $48.0 million of marketable equity securities during the first six months of 2021. There were no purchases of marketable equity securities during the first six months of 2020.

During the first six months of 2021, the gross cumulative realized gains from the sales of marketable equity securities were $27.7 million. The total proceeds from such sales were $37.6 million. During the first six months of 2020, the gross cumulative realized gains from the sales of marketable equity securities were $23.0 million. The total proceeds from such sales were $93.8 million.

The net gain (loss) on marketable equity securities comprised the following:

	Three Months Ended   June 30				Six Months Ended   June 30
(in thousands)	2021		2020		2021		2020
Gain (loss) on marketable equity securities, net	$	83,698	$	39,890	$	162,912	$	(60,503)
Less: Net (gains) losses in earnings from marketable equity securities sold and donated	(8,161)		4,608		(8,161)		13,382
Net unrealized gains (losses) in earnings from marketable equity securities still held at the end of the period	$	75,537	$	44,498	$	154,751	$	(47,121)

Investments in Affiliates. As of June 30, 2021, the Company held an approximate 12% interest in Intersection Holdings, LLC, and in several other affiliates; Graham Healthcare Group (GHG) held a 40% interest in Residential Home Health Illinois, a 42.5% interest in Residential Hospice Illinois, a 40% interest in the joint venture formed between GHG and a Michigan hospital, and a 40% interest in the joint venture formed between GHG and Allegheny Health Network (AHN). For the three and six months ended June 30, 2021, the Company recorded $2.7 million and $5.2 million, respectively, in revenue for services provided to the affiliates of GHG. For the three and six months ended June 30, 2020, the Company recorded $2.2 million and $4.7 million, respectively, in revenue for services provided to the affiliates of GHG.

The Company had $41.6 million and $26.1 million in its investment account that represents cumulative undistributed income in its investments in affiliates as of June 30, 2021 and December 31, 2020, respectively.

In the first quarter of 2020, the Company recorded impairment charges of $3.6 million on two of its investments in affiliates as a result of the challenging economic environment for these businesses, of which $2.7 million related to the Company’s investment in Framebridge. It is reasonably possible that further COVID-19 disruptions could result in additional impairment charges related to the Company’s investments in affiliates should the impact of COVID-19

not dissipate or have a worsening adverse impact on our affiliates in future periods. The Company records its share of the earnings or losses of its affiliates from their most recent available financial statements. In some instances, the reporting period of the affiliates’ financial statements lags the Company’s financial reporting period, but such lag is never more than three months. It is possible that the Company’s results of operations for the six months ended June 30, 2021 does not capture the impact of the COVID-19 pandemic on the earnings or losses of the affiliates whose financial results are recorded on a lag basis.

In May 2020, the Company made an additional investment in Framebridge (see Note 2) that resulted in the Company obtaining control of the investee. The results of operations, cash flows, assets and liabilities of Framebridge are included in the condensed consolidated financial statements of the Company from the date of the acquisition. Timothy J. O’Shaughnessy, President and Chief Executive Officer of Graham Holdings Company, was a personal investor in Framebridge and served as Chairman of the Board prior to the acquisition of the additional interest. The Company acquired Mr. O’Shaughnessy’s interest under the same terms as the other Framebridge investors.

Additionally, Kaplan International Holdings Limited (KIHL) held a 45% interest in a joint venture formed with York University. KIHL loaned the joint venture £22 million, which loan is repayable over 25 years at an interest rate of 7% and guaranteed by the University of York. The loan is repayable by December 2041.

Cost Method Investments. The Company held investments without readily determinable fair values in a number of equity securities that are accounted for as cost method investments, which are recorded at cost, less impairment, and adjusted for observable price changes for identical or similar investments of the same issuer. The carrying value of these investments was $45.1 million and $35.7 million as of June 30, 2021 and December 31, 2020, respectively. During the three and six months ended June 30, 2021, the Company recorded gains of $7.8 million and $10.5 million, respectively, to those equity securities based on observable transactions. During the three and six months ended June 30, 2020, the Company recorded gains of $2.6 million to those equity securities based on observable transactions. During the first six months of 2020, the Company recorded impairment losses of $2.6 million to those equity securities.

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Accounts Receivable, Accounts Payable and Accrued Liabilities

6 Months Ended

Jun. 30, 2021

Accounts Receivable Accounts Payable And Accrued Liabilities [Abstract]

Accounts Receivable Accounts Payable And Accrued Liabilities

ACCOUNTS RECEIVABLE, ACCOUNTS PAYABLE AND ACCRUED LIABILITIES

Accounts receivable consist of the following:

	As of
	June 30, 2021		December 31, 2020
(in thousands)
Receivables from contracts with customers, less estimated credit losses of $20,445 and $21,494	$	496,676	$	519,577
Other receivables	19,807		17,579
	$	516,483	$	537,156

Credit loss expense was $1.4 million and $4.8 million for the three months ended June 30, 2021 and 2020, respectively. Credit loss expense was $2.5 million and $7.2 million for the six months ended June 30, 2021 and 2020, respectively.

Accounts payable and accrued liabilities consist of the following:

	As of
	June 30, 2021		December 31, 2020
(in thousands)
Accounts payable	$	116,607	$	106,215
Accrued compensation and related benefits	139,125		135,493
Other accrued liabilities	256,677		278,528
	$	512,409	$	520,236

Cash overdrafts of $6.6 million and $2.1 million are included in accounts payable as of June 30, 2021 and December 31, 2020, respectively.

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Inventories, Contracts in Progress and Vehicle Floor Plan Payable

6 Months Ended

Jun. 30, 2021

Inventory, Net of Allowances, Customer Advances and Progress Billings [Abstract]

Inventories, Contracts in Progress and Vehicle Floor Plan Payable

INVENTORIES, CONTRACTS IN PROGRESS AND VEHICLE FLOOR PLAN PAYABLE

Inventories and contracts in progress consist of the following:

	As of
	June 30, 2021		December 31, 2020
(in thousands)
Raw materials	$	47,633	$	45,382
Work-in-process	15,675		10,402
Finished goods	62,825		64,061
Contracts in progress	262		777
	$	126,395	$	120,622

The Company finances new and used vehicle inventory through a standardized floor plan facility (the “floor plan facility”) with Truist Bank. The vehicle floor plan facility bears interest at variable rates that are based on LIBOR plus 1.15% per annum. The weighted average interest rate for the floor plan facility was 1.2% and 1.6% for the three months ended June 30, 2021 and 2020, respectively. The weighted average interest rate for the floor plan facility was 1.2% and 2.2% for the six months ended June 30, 2021 and 2020, respectively. As of June 30, 2021, the aggregate capacity under the floor plan facility was $50 million, of which $16.4 million had been utilized, and is included in accounts payable and accrued liabilities in the Condensed Consolidated Balance Sheet. Changes in the vehicle floor plan payable are reported as cash flows from financing activities in the Condensed Consolidated Statements of Cash Flows.

The floor plan facility is collateralized by vehicle inventory and other assets of the relevant dealership subsidiary, and contains a number of covenants, including, among others, covenants restricting the dealership subsidiary with respect to the creation of liens and changes in ownership, officers and key management personnel. The Company was in compliance with all of these restrictive covenants as of June 30, 2021.

The floor plan interest expense related to the vehicle floor plan arrangements is offset by amounts received from manufacturers in the form of floor plan assistance capitalized in inventory and recorded against cost of goods sold in the Condensed Consolidated Statements of Operations when the associated inventory is sold. For the three months ended June 30, 2021 and 2020, the Company recognized a reduction in cost of goods sold of $0.8 million and $0.5 million, respectively, related to manufacturer floor plan assistance. For the six months ended June 30, 2021 and 2020, the Company recognized a reduction in cost of goods sold of $1.4 million and $0.9 million, respectively, related to manufacturer floor plan assistance.

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Goodwill and Other Intangible Assets

6 Months Ended

Jun. 30, 2021

Goodwill and Intangible Assets Disclosure [Abstract]

Goodwill and Other Intangible Assets

GOODWILL AND OTHER INTANGIBLE ASSETSIn the first quarter of 2020, as a result of the uncertainty and challenging operating environment created by the COVID-19 pandemic, the Company performed an interim review of the goodwill, indefinite-lived intangibles and other long-lived assets of the Clyde’s Restaurant Group (CRG) and automotive dealership reporting units and asset groups. As a result of the impairment reviews, the Company recorded a $9.7 million goodwill and indefinite-lived intangible asset impairment charge at CRG and a $6.7 million indefinite-lived intangible asset impairment charge at the auto dealerships. The Company estimated the fair value of the reporting units and indefinite-lived intangible assets by utilizing a discounted cash flow model. The carrying value of the CRG reporting unit and the indefinite-lived intangible assets exceeded the estimated fair value, resulting in a goodwill and indefinite-lived intangible asset impairment charge for the amount by which the carrying value exceeded the estimated fair value. CRG and the automotive dealerships are included in other businesses. Additional COVID-19 disruptions could result in future adverse changes in projections for future operating results or other key assumptions, such as projected revenue, profit margin, capital expenditures or cash flows associated with fair value estimates and could lead to additional future impairments, which could be material.

Amortization of intangible assets for the three months ended June 30, 2021 and 2020, was $13.9 million and $14.3 million, respectively. Amortization of intangible assets for the six months ended June 30, 2021 and 2020, was $27.8 million and $28.5 million, respectively. Amortization of intangible assets is estimated to be approximately $32 million for the remainder of 2021, $60 million in 2022, $51 million in 2023, $40 million in 2024, $33 million in 2025 and $48 million thereafter. The changes in the carrying amount of goodwill, by segment, were as follows:

(in thousands)	Education		Television Broadcasting		Manufacturing		Healthcare		Other Businesses		Total
Balance as of December 31, 2020
Goodwill	$	1,183,379	$	190,815	$	234,993	$	98,421	$	130,472	$	1,838,080
Accumulated impairment losses	(331,151)		—		(7,616)		—		(14,563)		(353,330)
	852,228		190,815		227,377		98,421		115,909		1,484,750
Acquisitions	—		—		—		—		167,098		167,098
Foreign currency exchange rate changes	1,759		—		—		—		—		1,759
Balance as of June 30, 2021
Goodwill	1,185,138		190,815		234,993		98,421		297,570		2,006,937
Accumulated impairment losses	(331,151)		—		(7,616)		—		(14,563)		(353,330)
	$	853,987	$	190,815	$	227,377	$	98,421	$	283,007	$	1,653,607

The changes in carrying amount of goodwill at the Company’s education division were as follows:

(in thousands)	Kaplan International		Higher Education		Supplemental Education		Total
Balance as of December 31, 2020
Goodwill	$	634,749	$	174,564	$	374,066	$	1,183,379
Accumulated impairment losses	—		(111,324)		(219,827)		(331,151)
	634,749		63,240		154,239		852,228
Foreign currency exchange rate changes	1,696		—		63		1,759
Balance as of June 30, 2021
Goodwill	636,445		174,564		374,129		1,185,138
Accumulated impairment losses	—		(111,324)		(219,827)		(331,151)
	$	636,445	$	63,240	$	154,302	$	853,987

Other intangible assets consist of the following:

		As of June 30, 2021						As of December 31, 2020
(in thousands)	Useful Life Range	Gross Carrying Amount		Accumulated Amortization		Net Carrying Amount		Gross Carrying Amount		Accumulated Amortization		Net  Carrying Amount
Amortized Intangible Assets
Student and customer relationships	2–10 years	$	323,848	$	193,680	$	130,168	$	294,077	$	178,075	$	116,002
Trade names and trademarks	2–10 years	160,650		60,987		99,663		109,809		54,766		55,043
Network affiliation agreements	10 years	17,400		7,757		9,643		17,400		6,888		10,512
Databases and technology	3–6 years	36,761		23,148		13,613		34,864		19,924		14,940
Noncompete agreements	2–5 years	1,000		989		11		1,000		937		63
Other	1–8 years	29,800		18,490		11,310		24,800		16,714		8,086
		$	569,459	$	305,051	$	264,408	$	481,950	$	277,304	$	204,646
Indefinite-Lived Intangible Assets
Trade names and trademarks		$	88,409					$	87,429
Franchise agreements		21,858						21,858
FCC licenses		11,000						11,000
Licensure and accreditation		150						150
		$	121,417					$	120,437

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Debt

6 Months Ended

Jun. 30, 2021

Debt Disclosure [Abstract]

Debt

DEBT

The Company’s borrowings consist of the following:

	As of
	June 30, 2021		December 31, 2020
(in thousands)
5.75% unsecured notes due June 1, 2026 (1)	$	396,468	$	396,112
Revolving credit facility	76,181		74,686
Commercial note	23,750		25,250
Pinnacle Bank term loan	10,242		10,692
Pinnacle Bank line of credit	—		2,295
Other indebtedness	3,686		3,520
Total Debt	$	510,327	$	512,555
Less: current portion	(4,248)		(6,452)
Total Long-Term Debt	$	506,079	$	506,103

____________

(1)     The carrying value is net of $3.5 million and $3.9 million of unamortized debt issuance costs as of June 30, 2021 and December 31, 2020, respectively.

The outstanding balance on the Company’s revolving credit facility was £55 million as of June 30, 2021 with interest payable at the 3 month GBP LIBOR plus 1.50%. The Company’s other indebtedness at June 30, 2021 and December 31, 2020 is at interest rates of 0% to 16% and matures between 2023 and 2030.

The Company is in compliance with all financial covenants as of June 30, 2021.

During the three months ended June 30, 2021 and 2020, the Company had average borrowings outstanding of approximately $525.5 million and $510.5 million, respectively, at average annual interest rates of approximately 4.9% and 5.1%, respectively. During the three months ended June 30, 2021 and 2020, the Company incurred net interest expense of $5.5 million and $6.4 million, respectively.

During the six months ended June 30, 2021 and 2020, the Company had average borrowings outstanding of approximately $520.0 million and $511.2 million, respectively, at average annual interest rates of approximately 5.0% and 5.1%, respectively. During each of the six months ended June 30, 2021 and 2020, the Company incurred net interest expense of $13.0 million.

During the three and six months ended June 30, 2021, the Company recorded interest income of $1.0 million and net interest expense of $0.1 million, respectively, to adjust the fair value of the mandatorily redeemable noncontrolling interest. The fair value of the mandatorily redeemable noncontrolling interest was based on the fair value of the underlying subsidiaries owned by GHC One, after taking into account any debt and other noncontrolling interests of its subsidiary investments. The fair value of the owned subsidiaries is determined by reference to either a discounted cash flow or EBITDA multiple, which approximates fair value (Level 3 fair value assessment).

At June 30, 2021 and December 31, 2020, the fair value of the Company’s 5.75% unsecured notes, based on quoted market prices (Level 2 fair value assessment), totaled $418.4 million and $421.7 million, respectively, compared with the carrying amount of $396.5 million and $396.1 million, respectively. The carrying value of the Company’s other unsecured debt at June 30, 2021 and December 31, 2020 approximates fair value.

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Fair Value Measurements

6 Months Ended

Jun. 30, 2021

Fair Value Disclosures [Abstract]

Fair Value Measurements

FAIR VALUE MEASUREMENTS

The Company’s financial assets and liabilities measured at fair value on a recurring basis were as follows:

	As of June 30, 2021
(in thousands)	Level 1		Level 2		Level 3		Total
Assets
Marketable equity securities (1)	$	751,440	$	—	$	—	$	751,440
Other current investments (2)	7,212		7,088		—		14,300
Total Financial Assets	$	758,652	$	7,088	$	—	$	765,740
Liabilities
Deferred compensation plan liabilities (3)	$	—	$	30,033	$	—	$	30,033
Contingent consideration liabilities (4)	—		—		14,693		14,693
Interest rate swap (5)	—		1,704		—		1,704
Mandatorily redeemable noncontrolling interest (6)	—		—		9,332		9,332
Total Financial Liabilities	$	—	$	31,737	$	24,025	$	55,762

	As of December 31, 2020
(in thousands)	Level 1		Level 2		Level 3		Total
Assets
Money market investments (7)	$	—	$	268,841	$	—	$	268,841
Marketable equity securities (1)	573,102		—		—		573,102
Other current investments (2)	10,397		4,083		—		14,480
Total Financial Assets	$	583,499	$	272,924	$	—	$	856,423
Liabilities
Deferred compensation plan liabilities (3)	$	—	$	31,178	$	—	$	31,178
Contingent consideration liabilities (4)	—		—		37,174		37,174
Interest rate swap (5)	—		2,342		—		2,342
Foreign exchange swap (8)	—		259		—		259
Mandatorily redeemable noncontrolling interest (6)	—		—		9,240		9,240
Total Financial Liabilities	$	—	$	33,779	$	46,414	$	80,193

____________

(1)	The Company’s investments in marketable equity securities are held in common shares of U.S. and Canadian corporations that are actively traded on U.S. and Canadian stock exchanges. Price quotes for these shares are readily available.
(2)	Includes U.S. Government Securities, corporate bonds, mutual funds and time deposits. These investments are valued using a market approach based on the quoted market prices of the security or inputs that include quoted market prices for similar instruments and are classified as either Level 1 or Level 2 in the fair value hierarchy.
(3)	Includes Graham Holdings Company’s Deferred Compensation Plan and supplemental savings plan benefits under the Graham Holdings Company’s Supplemental Executive Retirement Plan, which are included in accrued compensation and related benefits. These plans measure the market value of a participant’s balance in a notional investment account that is comprised primarily of mutual funds, which are based on observable market prices. However, since the deferred compensation obligations are not exchanged in an active market, they are classified as Level 2 in the fair value hierarchy. Realized and unrealized gains (losses) on deferred compensation are included in operating income.
(4)	Included in Accounts payable and accrued liabilities and Other Liabilities. The Company determined the fair value of the contingent consideration liabilities using either a Monte Carlo simulation or probability-weighted analysis depending on the type of target included in the contingent consideration requirements (revenue, EBITDA, client retention). All analyses included estimated financial projections for the acquired businesses and acquisition-specific discount rates.
(5)	Included in Other Liabilities. The Company utilized a market approach model using the notional amount of the interest rate swap multiplied by the observable inputs of time to maturity and market interest rates.
(6)	The fair value of the mandatorily redeemable noncontrolling interest is based on the fair value of the underlying subsidiaries owned by GHC One, after taking into account any debt and other noncontrolling interests of its subsidiary investments. The fair value of the owned subsidiaries is determined using enterprise value analyses which include an equal weighing between guideline public company and discounted cash flow analyses.
(7)	The Company’s money market investments are included in cash and cash equivalents and the value considers the liquidity of the counterparty.
(8)	Included in Accounts payable and accrued liabilities, and valued based on a valuation model that calculates the differential between the contract price and the market-based forward rate.

The following table provides a reconciliation of changes in the Company’s financial liabilities measured at fair value on a recurring basis, using Level 3 inputs:

(in thousands)	Contingent consideration liabilities		Mandatorily redeemable noncontrolling interest
As of December 31, 2020	$	37,174	$	9,240
Changes in fair value (1)	(3,720)		96
Capital contributions	—		37
Accretion of value included in net income (1)	1,041		—
Settlements or distributions	(19,836)		(41)
Foreign currency exchange rate changes	34		—
As of June 30, 2021	$	14,693	$	9,332

____________

(1) Changes in fair value and accretion of value of contingent consideration liabilities are included in Selling, general and administrative expenses and the changes in fair value of mandatorily redeemable noncontrolling interest is included in Interest income and Interest expense in the Company’s Condensed Consolidated Statements of Operations.

During the three and six months ended June 30, 2021, the Company recorded other long-lived asset impairment charges of $3.8 million and $4.8 million, respectively. During the three and six months ended June 30, 2020, the Company recorded other long-lived asset impairment charges of $11.5 million (see Note 16). The remeasurement of the other long-lived assets is classified as a Level 3 fair value assessment due to the significance of unobservable inputs developed in the determination of the fair value. The Company used a discounted cash flow model to determine the estimated fair value of the other long-lived assets. A market value approach was also utilized to supplement the discounted cash flow model. The Company made estimates and assumptions regarding future cash flows, discount rates, and market values.

During the first quarter of 2020, the Company recorded goodwill and indefinite-lived intangible asset impairment charges of $16.4 million (see Note 6). The remeasurement of the goodwill and indefinite-lived intangible assets is classified as a Level 3 fair value assessment due to the significance of unobservable inputs developed in the determination of the fair value. The Company used a discounted cash flow model to determine the estimated fair value of the reporting unit and indefinite-lived intangible assets. A market value approach was also utilized to supplement the discounted cash flow model. The Company made estimates and assumptions regarding future cash flows, royalty rates, discount rates, market values, and long-term growth rates.

During the three and six months ended June 30, 2021, the Company recorded gains of $7.8 million and $10.5 million, respectively, to equity securities that are accounted for as cost method investments based on observable transactions for identical or similar investments of the same issuer. During the three and six months ended June 30, 2020, the Company recorded a gain of $2.6 million to an equity security that is accounted for as a cost method investment based on observable transactions for identical or similar investments of the same issuer. During the six months ended June 30, 2020, the Company recorded impairment losses of $2.6 million to equity securities that are accounted for as cost method investments.

During the first quarter of 2020, the Company recorded impairment charges of $3.6 million on two of its investments in affiliates.

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Income Taxes

6 Months Ended

Jun. 30, 2021

Income Tax Disclosure [Abstract]

Income Taxes

INCOME TAXES

On July 1, 2015 (the Distribution Date), the Company completed the spin-off of 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. Since July 1, 2015, Cable One has been an independent public company trading on the New York Stock Exchange under the symbol “CABO”. In connection with the Coronavirus Aid, Relief and Economic Security (CARES) Act, Cable One has the ability to carryback its 2019 taxable losses to the tax period from January 1, 2015 to June 30, 2015, the period in which Cable One was included in the Company’s 2015 tax return. As a result, the Company amended its 2015 tax returns in order to accommodate Cable One's request to carryback its 2019 taxable losses. The Company expects that this action will have no impact on the results or the financial position of the Company. To reflect the expected refund due to Cable One, the Company has included an estimated $15.9 million current income tax receivable and a corresponding current liability to Cable One on its balance sheet as of June 30, 2021.

The Company's effective tax rate for the first six months of 2021 and 2020 was 27.0% and 18.9%, respectively. The Company’s effective tax rate for the first quarter of 2020 was 57.3% and the effective tax rate for the second quarter of 2020 was 69.0%. The effective tax rates for interim periods is generally based on the Company’s estimated effective tax rate for the fiscal year. The Company’s estimated tax rate for 2020 included the adverse impacts of the COVID-19 pandemic, the CARES Act, and losses on marketable equity securities on the Company’s estimated pre-

tax income for 2020, resulting in a higher overall estimated tax rate, as permanent differences and increased valuation allowances in certain jurisdictions have a larger impact on the overall estimated effective tax rate.

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Revenue from Contracts with Customers

6 Months Ended

Jun. 30, 2021

Revenue from Contract with Customer [Abstract]

Revenue from Contracts with Customers

REVENUE FROM CONTRACTS WITH CUSTOMERS

The Company generated 78% and 77% of its revenue from U.S. domestic sales for the three and six months ended June 30, 2021, respectively. The remaining 22% and 23% of revenue was generated from non-U.S. sales for the three and six months ended June 30, 2021, respectively. For the three and six months ended June 30, 2020, 75% of revenue was from U.S. domestic sales and the remaining 25% of revenue was generated from non-U.S. sales.

For the three and six months ended June 30, 2021, the Company recognized 66% and 68% of its revenue over time as control of the services and goods transferred to the customer, and the remaining 34% and 32% at a point in time, when the customer obtained control of the promised goods. For the three and six months ended June 30, 2020, the Company recognized 76% and 74% of its revenue over time, and the remaining 24% and 26% at a point in time.

In the second quarter of 2020, GHG received $7.4 million under the CARES Act as a general distribution from the Provider Relief Fund to provide relief for lost revenues and expenses incurred in connection with COVID-19. The healthcare revenues for the three and six months ended June 30, 2020 includes $5.5 million for lost revenues related to COVID-19.

Contract Assets. As of June 30, 2021, the Company recognized a contract asset of $11.0 million related to a contract at a Kaplan International business, which is included in Deferred Charges and Other Assets. The Company expects to recognize an additional $7.0 million related to this performance obligation within the next year. As of December 31, 2020, the contract asset was $8.7 million.

Deferred Revenue. The Company records deferred revenue when cash payments are received or due in advance of the Company’s performance, including amounts which are refundable. The following table presents the change in the Company’s deferred revenue balance:

	As of
	June 30, 2021		December 31, 2020		%
(in thousands)					Change
Deferred revenue	$	287,706	$	343,322	(16)

In April 2020, GHG received $31.5 million under the expanded Medicare Accelerated and Advanced Payment Program modified by the CARES Act as a result of COVID-19. The Department of Health and Human Services started to recoup this advance 365 days after the payment was issued and for the three and six months ended June 30, 2021, $5.0 million of the balance was recognized in revenue for claims submitted for eligible services. The remaining amount is included in the current deferred revenue balance on the Condensed Consolidated Balance Sheet as of June 30, 2021. As of December 31, 2020, the $31.5 million balance was included in the current and noncurrent deferred revenue balances on the Condensed Consolidated Balance Sheet.

The majority of the change in deferred revenue balance is related to the cyclical nature of services in the Kaplan international division. During the six months ended June 30, 2021, the Company recognized $226.4 million related to the Company’s deferred revenue balance as of December 31, 2020.

Revenue allocated to remaining performance obligations represents deferred revenue amounts that will be recognized as revenue in future periods. As of June 30, 2021, the deferred revenue balance related to certain medical and nursing qualifications with an original contract length greater than twelve months at Kaplan Supplemental Education was $8.0 million. Kaplan Supplemental Education expects to recognize 72% of this revenue over the next twelve months and the remainder thereafter.

Costs to Obtain a Contract. The following table presents changes in the Company’s costs to obtain a contract asset:

(in thousands)	Balance at Beginning of Period		Costs associated with new contracts		Less: Costs amortized during the period		Other		Balance at End of Period
2021	$	24,363	$	16,692	$	(27,192)	$	104	$	13,967

Other activity includes currency translation adjustments for the six months ended June 30, 2021.

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Earnings (Loss) Per Share

6 Months Ended

Jun. 30, 2021

Earnings Per Share [Abstract]

Earnings (Loss) Per Share

EARNINGS (LOSS) PER SHARE

The Company’s unvested restricted stock awards contain nonforfeitable rights to dividends and, therefore, are considered participating securities for purposes of computing earnings per share pursuant to the two-class method. The diluted earnings per share computed under the two-class method is lower than the diluted earnings per share computed under the treasury stock method, resulting in the presentation of the lower amount in diluted earnings per share. The computation of the earnings per share under the two-class method excludes the income attributable to the unvested restricted stock awards from the numerator and excludes the dilutive impact of those underlying shares from the denominator.

The following reflects the Company’s net income (loss) and share data used in the basic and diluted earnings (loss) per share computations using the two-class method:

	Three Months Ended   June 30						Six Months Ended   June 30
(in thousands, except per share amounts)	2021			2020			2021			2020
Numerator:
Numerator for basic earnings (loss) per share:
Net income (loss) attributable to Graham Holdings Company common stockholders	$	115,358		$	18,854		$	227,808		$	(14,391)
Less: Dividends paid-common stock outstanding and unvested restricted shares	(7,553)			(7,581)			(22,659)			(22,870)
Undistributed earnings (loss)	107,805			11,273			205,149			(37,261)
Percent allocated to common stockholders (1)	99.34		%	99.44		%	99.34		%	100.00		%
	107,089			11,210			203,786			(37,261)
Add: Dividends paid-common stock outstanding	7,503			7,539			22,508			22,745
Numerator for basic earnings (loss) per share	$	114,592		$	18,749		$	226,294		$	(14,516)
Add: Additional undistributed earnings due to dilutive stock options	2			—			4			—
Numerator for diluted earnings (loss) per share	$	114,594		$	18,749		$	226,298		$	(14,516)
Denominator:
Denominator for basic earnings (loss) per share:
Weighted average shares outstanding	4,968			5,196			4,968			5,235
Add: Effect of dilutive stock options	17			5			13			—
Denominator for diluted earnings (loss) per share	4,985			5,201			4,981			5,235
Graham Holdings Company Common Stockholders:
Basic earnings (loss) per share	$	23.07		$	3.61		$	45.55		$	(2.77)
Diluted earnings (loss) per share	$	22.99		$	3.60		$	45.43		$	(2.77)

_______

(1) Percent of undistributed losses allocated to common stockholders was 100% in the first six months of 2020 as participating securities are not contractually obligated to share in losses.

Diluted earnings (loss) per share excludes the following weighted average potential common shares, as the effect would be antidilutive, as computed under the treasury stock method:

	Three Months Ended   June 30		Six Months Ended   June 30
(in thousands)	2021	2020	2021	2020
Weighted average restricted stock	13	10	10	10
Weighted average stock options	—	—	—	17

The diluted earnings (loss) per share amounts for the three and six months ended June 30, 2021 and June 30, 2020 exclude the effects of 104,000 stock options outstanding, as their inclusion would have been antidilutive due to a market condition.

In the three and six months ended June 30, 2021, the Company declared regular dividends totaling $1.51 and $4.53 per common share, respectively. In the three and six months ended June 30, 2020, the Company declared regular dividends totaling $1.45 and $4.35 per common share, respectively.

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Pension and Postretirement Plans

6 Months Ended

Jun. 30, 2021

Retirement Benefits, Description [Abstract]

Pension and Postretirement Plans

PENSION AND POSTRETIREMENT PLANS

Defined Benefit Plans. The total benefit arising from the Company’s defined benefit pension plans consists of the following components:

	Three Months Ended   June 30				Six Months Ended   June 30
(in thousands)	2021		2020		2021		2020
Service cost	$	5,877	$	5,804	$	11,479	$	11,587
Interest cost	6,754		8,140		13,408		16,309
Expected return on assets	(33,702)		(28,290)		(68,278)		(56,734)
Amortization of prior service cost	712		707		1,423		1,415
Recognized actuarial gain	(1,671)		—		(4,563)		—
Net Periodic Benefit	(22,030)		(13,639)		(46,531)		(27,423)
Special separation benefit expense	1,118		6,014		1,118		6,014
Total Benefit	$	(20,912)	$	(7,625)	$	(45,413)	$	(21,409)

In the second quarter of 2021, the Company recorded $1.1 million in expenses related to a Separation Incentive Program (SIP) for certain Dekko employees, which will be funded from the assets of the Company’s pension plan. In the second quarter of 2020, the Company recorded $6.0 million in expenses related to a SIP for certain Kaplan, Code3 and Decile employees, which was funded from the assets of the Company’s pension plan.

The total cost arising from the Company’s Supplemental Executive Retirement Plan (SERP) consists of the following components:

	Three Months Ended   June 30				Six Months Ended   June 30
(in thousands)	2021		2020		2021		2020
Service cost	$	256	$	239	$	511	$	477
Interest cost	735		920		1,471		1,839
Amortization of prior service cost	82		82		165		165
Recognized actuarial loss	1,483		1,317		2,965		2,634
Net Periodic Cost	$	2,556	$	2,558	$	5,112	$	5,115

Defined Benefit Plan Assets. The Company’s defined benefit pension obligations are funded by a portfolio made up of a private investment fund, a U.S. stock index fund, and a relatively small number of stocks and high-quality fixed-income securities that are held by a third-party trustee. The assets of the Company’s pension plans were allocated as follows:

	As of
	June 30, 2021		December 31, 2020
U.S. equities	60	%	58	%
Private investment fund	18	%	18	%
U.S. stock index fund	9	%	9	%
International equities	7	%	8	%
U.S. fixed income	6	%	7	%
	100	%	100	%

The Company manages approximately 40% of the pension assets internally, of which the majority is invested in a private investment fund with the remaining investments in Berkshire Hathaway stock, a U.S. stock index fund and short-term fixed-income securities. The remaining 60% of plan assets are managed by two investment companies. The goal of the investment managers is to produce moderate long-term growth in the value of these assets, while protecting them against large decreases in value. Both investment managers may invest in a combination of equity and fixed-income securities and cash. The managers are not permitted to invest in securities of the Company or in alternative investments. One investment manager cannot invest more than 15% of the assets at the time of purchase in the stock of Alphabet and Berkshire Hathaway, and no more than 30% of the assets it manages in specified international exchanges at the time the investment is made. The other investment manager cannot invest more than 20% of the assets at the time of purchase in the stock of Berkshire Hathaway, and no more than 15% of the assets it manages in specified international exchanges at the time the investment is made, and no less than 10% of the assets could be invested in fixed-income securities. Excluding the exceptions noted above, the investment managers cannot invest more than 10% of the assets in the securities of any other single issuer, except for obligations of the U.S. Government, without receiving prior approval from the Plan administrator.

In determining the expected rate of return on plan assets, the Company considers the relative weighting of plan assets, the historical performance of total plan assets and individual asset classes and economic and other indicators of future performance. In addition, the Company may consult with and consider the input of financial and other professionals in developing appropriate return benchmarks.

The Company evaluated its defined benefit pension plan asset portfolio for the existence of significant concentrations (defined as greater than 10% of plan assets) of credit risk as of June 30, 2021. Types of concentrations that were evaluated include, but are not limited to, investment concentrations in a single entity, type of industry, foreign country and individual fund. At June 30, 2021, the pension plan held investments in one common stock and one private investment fund that exceeded 10% of total plan assets, valued at $976.9 million, or approximately 31% of total plan assets. At December 31, 2020, the pension plan held investments in one common stock and one private investment fund that exceeded 10% of total plan assets, valued at $850.6 million, or approximately 30% of total plan assets.

Other Postretirement Plans. The total cost arising from the Company’s other postretirement plans consists of the following components:

	Three Months Ended   June 30				Six Months Ended   June 30
(in thousands)	2021		2020		2021		2020
Interest cost	$	10	$	22	$	46	$	84
Amortization of prior service credit	(2)		(121)		(4)		(241)
Recognized actuarial gain	(736)		(927)		(1,755)		(2,024)
Net Periodic Benefit	$	(728)	$	(1,026)	$	(1,713)	$	(2,181)

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Other Non-Operating Income

6 Months Ended

Jun. 30, 2021

Other Nonoperating Income (Expense) [Abstract]

Other Non-Operating Income

OTHER NON-OPERATING INCOME

A summary of non-operating income is as follows:

	Three Months Ended   June 30				Six Months Ended   June 30
(in thousands)	2021		2020		2021		2020
Gain on cost method investments	$	7,783	$	2,571	$	10,506	$	2,571
Gain on sale of cost method investments	6,699		—		6,793		518
Gain on sale of businesses	644		1,653		1,446		1,760
Foreign currency gain (loss), net	677		(1,070)		680		3,220
Gain on acquiring a controlling interest in an equity affiliate	—		3,708		—		3,708
Impairment of cost method investments	—		—		—		(2,577)
Gain on sale of equity affiliates	—		1,473		—		1,370
Other gain (loss), net	319		(235)		3,017		218
Total Other Non-Operating Income	$	16,122	$	8,100	$	22,442	$	10,788

The gains on cost method investments result from observable price changes in the fair value of the underlying equity securities accounted for under the cost method (see Notes 3 and 8).

During the three and six months ended June 30, 2021, the Company recorded contingent consideration gains of $0.6 million and $1.5 million, respectively, related to the disposition of Kaplan University (KU) in 2018. During the three and six months ended June 30, 2020, the Company recorded contingent consideration gains of $1.7 million and $1.8 million, respectively.

In the second quarter of 2020, the Company made an additional investment in Framebridge (see Notes 2 and 3) that resulted in the Company obtaining control of the investee. The Company remeasured its previously held equity interest in Framebridge at the acquisition-date fair value and recorded a gain of $3.7 million. The fair value was determined using a market approach by using the share value indicated in the transaction.

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Accumulated Other Comprehensive Income (Loss)

6 Months Ended

Jun. 30, 2021

Accumulated Other Comprehensive Income (Loss), Net of Tax [Abstract]

Accumulated Other Comprehensive Income (Loss)

ACCUMULATED OTHER COMPREHENSIVE INCOME (LOSS)

The other comprehensive income (loss) consists of the following components:

	Three Months Ended June 30
	2021						2020
	Before-Tax		Income		After-Tax		Before-Tax		Income		After-Tax
(in thousands)	Amount		Tax		Amount		Amount		Tax		Amount
Foreign currency translation adjustments:
Translation adjustments arising during the period	$	1,167	$	—	$	1,167	$	16,405	$	—	$	16,405
Pension and other postretirement plans:
Amortization of net prior service cost included in net income	792		(214)		578		668		(181)		487
Amortization of net actuarial (gain) loss included in net income	(924)		249		(675)		390		(104)		286
	(132)		35		(97)		1,058		(285)		773
Cash flow hedges:
Gain (loss) for the period	13		(3)		10		(143)		33		(110)
Other Comprehensive Income	$	1,048	$	32	$	1,080	$	17,320	$	(252)	$	17,068

	Six Months Ended June 30
	2021						2020
	Before-Tax		Income		After-Tax		Before-Tax		Income		After-Tax
(in thousands)	Amount		Tax		Amount		Amount		Tax		Amount
Foreign currency translation adjustments:
Translation adjustments arising during the period	$	681	$	—	$	681	$	(20,971)	$	—	$	(20,971)
Pension and other postretirement plans:
Amortization of net prior service cost included in net income	1,584		(427)		1,157		1,339		(362)		977
Amortization of net actuarial (gain) loss included in net income	(3,353)		905		(2,448)		610		(164)		446
	(1,769)		478		(1,291)		1,949		(526)		1,423
Cash flow hedges:
Gain (loss) for the period	634		(147)		487		(1,721)		394		(1,327)
Other Comprehensive Loss	$	(454)	$	331	$	(123)	$	(20,743)	$	(132)	$	(20,875)

The accumulated balances related to each component of other comprehensive income (loss) are as follows:

(in thousands, net of taxes)	Cumulative Foreign Currency Translation Adjustment		Unrealized Gain on Pensions and Other Postretirement Plans		Cash Flow Hedges		Accumulated Other Comprehensive Income
Balance as of December 31, 2020	$	9,754	$	595,287	$	(1,727)	$	603,314
Other comprehensive income before reclassifications	681		—		180		861
Net amount reclassified from accumulated other comprehensive income (loss)	—		(1,291)		307		(984)
Other comprehensive income (loss), net of tax	681		(1,291)		487		(123)
Balance as of June 30, 2021	$	10,435	$	593,996	$	(1,240)	$	603,191

The amounts and line items of reclassifications out of Accumulated Other Comprehensive Income (Loss) are as follows:

	Three Months Ended   June 30				Six Months Ended   June 30				Affected Line Item in the Condensed Consolidated Statements of Operations
(in thousands)	2021		2020		2021		2020
Pension and Other Postretirement Plans:
Amortization of net prior service cost	$	792	$	668	$	1,584	$	1,339	(1)
Amortization of net actuarial (gain) loss	(924)		390		(3,353)		610		(1)
	(132)		1,058		(1,769)		1,949		Before tax
	35		(285)		478		(526)		Provision for (Benefit from) Income Taxes
	(97)		773		(1,291)		1,423		Net of Tax
Cash Flow Hedges
	153		118		307		147		Interest expense
	—		6		—		13		Provision for (Benefit from) Income Taxes
	153		124		307		160		Net of Tax
Total reclassification for the period	$	56	$	897	$	(984)	$	1,583	Net of Tax

____________

(1)    These accumulated other comprehensive income components are included in the computation of net periodic pension and postretirement plan cost (see Note 12) and are included in non-operating pension and postretirement benefit income in the Company’s Condensed Consolidated Statements of Operations.

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Contingencies

6 Months Ended

Jun. 30, 2021

Commitments and Contingencies Disclosure [Abstract]

Contingencies

CONTINGENCIES

Litigation, Legal and Other Matters.  The Company and its subsidiaries are subject to complaints and administrative proceedings and are defendants in various civil lawsuits that have arisen in the ordinary course of their businesses, including contract disputes; actions alleging negligence, libel, defamation and invasion of privacy; trademark, copyright and patent infringement; violations of employment laws and applicable wage and hour laws; and statutory or common law claims involving current and former students and employees. Although the outcomes of the legal claims and proceedings against the Company cannot be predicted with certainty, based on currently available information, management believes that there are no existing claims or proceedings that are likely to have a material effect on the Company’s business, financial condition, results of operations or cash flows. However, based on currently available information, management believes it is reasonably possible that future losses from existing and threatened legal, regulatory and other proceedings in excess of the amounts recorded could reach approximately $10 million.

In 2015, Kaplan sold substantially all of the assets of the Kaplan Higher Education Campuses (KHEC) business to Education Corporation of America. In 2018, certain subsidiaries of Kaplan contributed the institutional assets and operations of KU to a new university: an Indiana nonprofit, public-benefit corporation affiliated with Purdue University, known as Purdue University Global. Kaplan could be held liable to the current owners of KU and the KHEC schools related to the pre-sale conduct of the schools, and the pre-sale conduct of the schools has been and could be the subject of future compliance reviews, regulatory proceedings or lawsuits that could result in monetary liabilities or fines or other sanctions. In May 2021, Kaplan received a Notice from the U.S. Department of Education (ED) that the department would be requiring a fact-finding process pursuant to the borrower defense to repayment regulations to determine the validity of more than 800 borrower defense to repayment claims and a request for documents related to several of Kaplan’s previously-owned schools. More recently, Kaplan has received information requests from the ED related to over 1,400 student claims for the ED to grant debt relief. If the ED grants any student claims, it is possible that the ED would seek reimbursement from Kaplan. Based on Kaplan’s initial review of the information received from the ED, Kaplan believes it has legal claims that would bar any student discharge or school liability and expects to vigorously defend any attempt by the ED to hold Kaplan liable for any ultimate student discharges. At this time, Kaplan is uncertain as to the total number of possible claims or the amount of potential liability.

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Business Segments

6 Months Ended

Jun. 30, 2021

Segment Reporting [Abstract]

Business Segments

BUSINESS SEGMENTS

The Company has six reportable segments: Kaplan International, Kaplan Higher Education, Kaplan Supplemental Education, Television Broadcasting, Manufacturing and Healthcare.

Across all businesses, restructuring related costs of $29.2 million and $31.3 million were recorded for the three and six months ended June 30, 2020, respectively. Kaplan Higher Education recorded $2.0 million in facility related restructuring costs in the first quarter of 2020. Restructuring related costs across all businesses during the first six months of 2020 were recorded as follows:

(in thousands)	Kaplan International		Higher Education		Supplemental Education		Kaplan Corporate		Total Education		Other Businesses		Total
Severance	$	1,224	$	—	$	—	$	—	$	1,224	$	—	$	1,224
Facility related costs:
Operating lease cost	2,418		3,442		3,296		—		9,156		—		9,156
Accelerated depreciation of property, plant and equipment	1,472		95		1,801		—		3,368		—		3,368
Total Restructuring Costs Included in Segment Income (Loss) from Operations (1)	$	5,114	$	3,537	$	5,097	$	—	$	13,748	$	—	$	13,748
Impairment of other long-lived assets:
Lease right-of-use assets	3,790		2,062		2,198		—		8,050		1,405		9,455
Property, plant and equipment	1,199		174		597		—		1,970		86		2,056
Non-operating pension and postretirement benefit income, net	1,100		1,431		2,295		189		5,015		999		6,014
Total Restructuring Related Costs	$	11,203	$	7,204	$	10,187	$	189	$	28,783	$	2,490	$	31,273

(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.

In June 2020, CRG made the decision to close its restaurant and entertainment venue in Columbia, MD effective July 19, 2020 and recorded accelerated depreciation of property, plant and equipment totaling $2.8 million.

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

	Three months ended				Six months ended
	June 30				June 30
(in thousands)	2021		2020		2021		2020
Operating Revenues
Education	$	339,984	$	333,175	$	669,301	$	689,553
Television broadcasting	119,966		100,762		233,591		216,210
Manufacturing	141,123		83,239		257,083		196,697
Healthcare	54,696		49,181		104,739		95,175
Other businesses	145,899		86,863		249,938		188,145
Corporate office	—		—		—		—
Intersegment elimination	(516)		(349)		(1,045)		(652)
	$	801,152	$	652,871	$	1,513,607	$	1,385,128
Income (Loss) from Operations before Amortization of Intangible Assets and Impairment of Goodwill and Other Long-Lived Assets
Education	$	19,221	$	26,545	$	43,369	$	35,438
Television broadcasting	36,964		24,988		71,301		62,124
Manufacturing	19,038		5,506		34,932		19,144
Healthcare	9,375		10,125		17,296		14,604
Other businesses	(14,780)		(22,429)		(33,472)		(39,352)
Corporate office	(14,570)		(13,020)		(29,350)		(21,592)
	$	55,248	$	31,715	$	104,076	$	70,366
Amortization of Intangible Assets and Impairment of Goodwill and Other Long-Lived Assets
Education	$	6,073	$	14,291	$	11,285	$	18,492
Television broadcasting	1,361		1,361		2,720		2,721
Manufacturing	6,610		6,988		13,597		14,125
Healthcare	780		1,307		1,561		2,617
Other businesses	2,833		1,891		3,478		18,449
Corporate office	—		—		—		—
	$	17,657	$	25,838	$	32,641	$	56,404
Income (Loss) from Operations
Education	$	13,148	$	12,254	$	32,084	$	16,946
Television broadcasting	35,603		23,627		68,581		59,403
Manufacturing	12,428		(1,482)		21,335		5,019
Healthcare	8,595		8,818		15,735		11,987
Other businesses	(17,613)		(24,320)		(36,950)		(57,801)
Corporate office	(14,570)		(13,020)		(29,350)		(21,592)
	$	37,591	$	5,877	$	71,435	$	13,962
Equity in Earnings (Losses) of Affiliates, Net	1,776		1,182		15,204		(365)
Interest Expense, Net	(5,477)		(6,423)		(13,035)		(12,950)
Non-Operating Pension and Postretirement Benefit Income, Net	25,216		12,136		54,003		30,539
Gain (Loss) on Marketable Equity Securities, Net	83,698		39,890		162,912		(60,503)
Other Income, Net	16,122		8,100		22,442		10,788
Income (Loss) Before Income Taxes	$	158,926	$	60,762	$	312,961	$	(18,529)
Depreciation of Property, Plant and Equipment
Education	$	7,482	$	10,324	$	15,262	$	17,653
Television broadcasting	3,543		3,446		7,016		6,789
Manufacturing	2,427		2,526		4,944		5,053
Healthcare	331		493		648		1,033
Other businesses	2,659		5,948		4,949		8,738
Corporate office	158		176		326		351
	$	16,600	$	22,913	$	33,145	$	39,617
Pension Service Cost
Education	$	2,398	$	2,592	$	4,681	$	5,177
Television broadcasting	956		836		1,791		1,632
Manufacturing	246		395		641		789
Healthcare	108		112		280		271
Other businesses	487		403		856		866
Corporate office	1,682		1,466		3,230		2,852
	$	5,877	$	5,804	$	11,479	$	11,587

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

	As of
(in thousands)	June 30, 2021		December 31, 2020
Identifiable Assets
Education	$	1,854,482	$	1,975,104
Television broadcasting	446,499		453,988
Manufacturing	555,155		551,611
Healthcare	165,521		160,654
Other businesses	805,245		517,533
Corporate office	83,409		348,045
	$	3,910,311	$	4,006,935
Investments in Marketable Equity Securities	751,440		573,102
Investments in Affiliates	164,203		155,777
Prepaid Pension Cost	1,750,588		1,708,305
Total Assets	$	6,576,542	$	6,444,119

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

	Three Months Ended				Six months ended
	June 30				June 30
(in thousands)	2021		2020		2021		2020
Operating Revenues
Kaplan international	$	181,276	$	164,713	$	353,171	$	364,328
Higher education	78,740		86,453		154,426		159,990
Supplemental education	77,911		79,785		157,566		161,073
Kaplan corporate and other	3,615		3,039		6,978		6,244
Intersegment elimination	(1,558)		(815)		(2,840)		(2,082)
	$	339,984	$	333,175	$	669,301	$	689,553
Income (Loss) From Operations before Amortization of Intangible Assets and Impairment of Long-Lived Assets
Kaplan international	$	14,077	$	16,035	$	24,284	$	35,015
Higher education	2,374		17,050		8,627		15,030
Supplemental education	8,813		330		21,310		(6,220)
Kaplan corporate and other	(6,042)		(6,870)		(10,949)		(8,392)
Intersegment elimination	(1)		—		97		5
	$	19,221	$	26,545	$	43,369	$	35,438
Amortization of Intangible Assets	$	3,914	$	4,271	$	8,079	$	8,472
Impairment of Long-Lived Assets	$	2,159	$	10,020	$	3,206	$	10,020
Income (Loss) from Operations
Kaplan international	$	14,077	$	16,035	$	24,284	$	35,015
Higher education	2,374		17,050		8,627		15,030
Supplemental education	8,813		330		21,310		(6,220)
Kaplan corporate and other	(12,115)		(21,161)		(22,234)		(26,884)
Intersegment elimination	(1)		—		97		5
	$	13,148	$	12,254	$	32,084	$	16,946
Depreciation of Property, Plant and Equipment
Kaplan international	$	4,835	$	5,619	$	10,087	$	10,197
Higher education	873		832		1,725		1,555
Supplemental education	1,670		3,772		3,246		5,711
Kaplan corporate and other	104		101		204		190
	$	7,482	$	10,324	$	15,262	$	17,653
Pension Service Cost
Kaplan international	$	77	$	120	$	148	$	232
Higher education	1,137		1,070		2,220		2,140
Supplemental education	976		1,084		1,907		2,169
Kaplan corporate and other	208		318		406		636
	$	2,398	$	2,592	$	4,681	$	5,177

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

	As of
(in thousands)	June 30, 2021		December 31, 2020
Identifiable Assets
Kaplan international	$	1,346,838	$	1,455,722
Higher education	181,508		187,123
Supplemental education	261,229		274,687
Kaplan corporate and other	64,907		57,572
	$	1,854,482	$	1,975,104

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Organization, Basis of Presentation And Recent Accounting Pronouncements (Policies)

6 Months Ended

Jun. 30, 2021

Organization, Consolidation and Presentation of Financial Statements [Abstract]

Basis of Presentation

Basis of Presentation – The accompanying condensed consolidated financial statements have been prepared in accordance with: (i) generally accepted accounting principles in the United States of America (GAAP) for interim financial information; (ii) the instructions to Form 10-Q; and (iii) the guidance of Rule 10-01 of Regulation S-X under the Securities and Exchange Act of 1934, as amended, for financial statements required to be filed with the Securities and Exchange Commission (SEC). They include the assets, liabilities, results of operations and cash flows of the Company, including its domestic and foreign subsidiaries that are more than 50% owned or otherwise controlled by the Company. As permitted under such rules, certain notes and other financial information normally required by GAAP have been condensed or omitted. Management believes the accompanying condensed consolidated financial statements reflect all normal and recurring adjustments necessary for a fair statement of the Company’s financial position, results of operations, and cash flows as of and for the periods presented herein. The Company’s results of operations for the three and six months ended June 30, 2021 and 2020 may not be indicative of the Company’s future results. These condensed consolidated financial statements are unaudited and should be read in conjunction with the Company’s audited consolidated financial statements and the notes thereto included in the Company’s Annual Report on Form 10-K for the fiscal year ended December 31, 2020.

The year-end condensed consolidated balance sheet data was derived from audited financial statements, but does not include all disclosures required by GAAP.

Use of Estimates in the Preparation of the Condensed Consolidated Financial Statements

Use of Estimates in the Preparation of the Condensed Consolidated Financial Statements – The preparation of the condensed consolidated financial statements in conformity with GAAP requires management to make estimates and judgments that affect the amounts reported herein. Management bases its estimates and assumptions on historical experience and on various other factors that are believed to be reasonable under the circumstances. Due to the inherent uncertainty involved in making estimates, actual results reported in future periods may be affected by changes in those estimates.

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Acquisitions and Dispositions of Businesses (Tables)

6 Months Ended

Jun. 30, 2021

Acquisitions And Dispositions [Abstract]

Schedule of assets acquired and liabilities assumed

The aggregate purchase price of the 2021 and 2020 acquisitions was allocated as follows (2021 on a preliminary basis), based on acquisition date fair values to the following assets and liabilities:

	Purchase Price Allocation
	Six Months Ended		Year Ended
(in thousands)	June 30, 2021		December 31, 2020
Accounts receivable	$	16,080	$	745
Inventory	777		3,496
Property, plant and equipment	6,229		3,346
Lease right-of-use assets	7,744		6,580
Goodwill	167,098		73,951
Amortized intangible assets	88,000		14,589
Other assets	4,507		975
Deferred income taxes	40,850		15,958
Other liabilities	(49,797)		(14,917)
Current and noncurrent lease liabilities	(7,742)		(6,593)
Redeemable noncontrolling interest	—		(6,005)
Aggregate purchase price, net of cash acquired	$	273,746	$	92,125

Acquisition Pro Forma Financial Information

The following unaudited pro forma financial information presents the Company’s results as if the current year acquisitions had occurred at the beginning of 2020. The unaudited pro forma information also includes the 2020 acquisitions as if they occurred at the beginning of 2019:

	Three Months Ended   June 30				Six Months Ended   June 30
(in thousands)	2021		2020		2021		2020
Operating revenues	$	841,966	$	704,738	$	1,606,299	$	1,475,834
Net income (loss)	111,086		13,129		217,821		(36,427)

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Investments (Tables)

6 Months Ended

Jun. 30, 2021

Investments [Abstract]

Investments in Marketable Equity Securities

Investments in marketable equity securities consist of the following:

	As of
	June 30, 2021		December 31, 2020
(in thousands)
Total cost	$	276,532	$	232,847
Gross unrealized gains	474,908		340,255
Total Fair Value	$	751,440	$	573,102

Gain (Loss) on Marketable Equity Securities

The net gain (loss) on marketable equity securities comprised the following:

	Three Months Ended   June 30				Six Months Ended   June 30
(in thousands)	2021		2020		2021		2020
Gain (loss) on marketable equity securities, net	$	83,698	$	39,890	$	162,912	$	(60,503)
Less: Net (gains) losses in earnings from marketable equity securities sold and donated	(8,161)		4,608		(8,161)		13,382
Net unrealized gains (losses) in earnings from marketable equity securities still held at the end of the period	$	75,537	$	44,498	$	154,751	$	(47,121)

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Accounts Receivable, Accounts Payable and Accrued Liabilities (Tables)

6 Months Ended

Jun. 30, 2021

Accounts Receivable Accounts Payable And Accrued Liabilities [Abstract]

Schedule of Accounts Receivable

Accounts receivable consist of the following:

	As of
	June 30, 2021		December 31, 2020
(in thousands)
Receivables from contracts with customers, less estimated credit losses of $20,445 and $21,494	$	496,676	$	519,577
Other receivables	19,807		17,579
	$	516,483	$	537,156

Schedule of Accounts Payable and Accrued Liabilities

Accounts payable and accrued liabilities consist of the following:

	As of
	June 30, 2021		December 31, 2020
(in thousands)
Accounts payable	$	116,607	$	106,215
Accrued compensation and related benefits	139,125		135,493
Other accrued liabilities	256,677		278,528
	$	512,409	$	520,236

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Inventories, Contracts in Progress and Vehicle Floor Plan Payable (Tables)

6 Months Ended

Jun. 30, 2021

Inventory, Net of Allowances, Customer Advances and Progress Billings [Abstract]

Schedule of Inventories and Contracts in Progress

Inventories and contracts in progress consist of the following:

	As of
	June 30, 2021		December 31, 2020
(in thousands)
Raw materials	$	47,633	$	45,382
Work-in-process	15,675		10,402
Finished goods	62,825		64,061
Contracts in progress	262		777
	$	126,395	$	120,622

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Goodwill and Other Intangible Assets (Tables)

6 Months Ended

Jun. 30, 2021

Changes in Carrying Amount of Goodwill

The changes in the carrying amount of goodwill, by segment, were as follows:

(in thousands)	Education		Television Broadcasting		Manufacturing		Healthcare		Other Businesses		Total
Balance as of December 31, 2020
Goodwill	$	1,183,379	$	190,815	$	234,993	$	98,421	$	130,472	$	1,838,080
Accumulated impairment losses	(331,151)		—		(7,616)		—		(14,563)		(353,330)
	852,228		190,815		227,377		98,421		115,909		1,484,750
Acquisitions	—		—		—		—		167,098		167,098
Foreign currency exchange rate changes	1,759		—		—		—		—		1,759
Balance as of June 30, 2021
Goodwill	1,185,138		190,815		234,993		98,421		297,570		2,006,937
Accumulated impairment losses	(331,151)		—		(7,616)		—		(14,563)		(353,330)
	$	853,987	$	190,815	$	227,377	$	98,421	$	283,007	$	1,653,607

Other Intangible Assets

Other intangible assets consist of the following:

		As of June 30, 2021						As of December 31, 2020
(in thousands)	Useful Life Range	Gross Carrying Amount		Accumulated Amortization		Net Carrying Amount		Gross Carrying Amount		Accumulated Amortization		Net  Carrying Amount
Amortized Intangible Assets
Student and customer relationships	2–10 years	$	323,848	$	193,680	$	130,168	$	294,077	$	178,075	$	116,002
Trade names and trademarks	2–10 years	160,650		60,987		99,663		109,809		54,766		55,043
Network affiliation agreements	10 years	17,400		7,757		9,643		17,400		6,888		10,512
Databases and technology	3–6 years	36,761		23,148		13,613		34,864		19,924		14,940
Noncompete agreements	2–5 years	1,000		989		11		1,000		937		63
Other	1–8 years	29,800		18,490		11,310		24,800		16,714		8,086
		$	569,459	$	305,051	$	264,408	$	481,950	$	277,304	$	204,646
Indefinite-Lived Intangible Assets
Trade names and trademarks		$	88,409					$	87,429
Franchise agreements		21,858						21,858
FCC licenses		11,000						11,000
Licensure and accreditation		150						150
		$	121,417					$	120,437

Education [Member]

Changes in Carrying Amount of Goodwill

The changes in carrying amount of goodwill at the Company’s education division were as follows:

(in thousands)	Kaplan International		Higher Education		Supplemental Education		Total
Balance as of December 31, 2020
Goodwill	$	634,749	$	174,564	$	374,066	$	1,183,379
Accumulated impairment losses	—		(111,324)		(219,827)		(331,151)
	634,749		63,240		154,239		852,228
Foreign currency exchange rate changes	1,696		—		63		1,759
Balance as of June 30, 2021
Goodwill	636,445		174,564		374,129		1,185,138
Accumulated impairment losses	—		(111,324)		(219,827)		(331,151)
	$	636,445	$	63,240	$	154,302	$	853,987

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Debt (Tables)

6 Months Ended

Jun. 30, 2021

Debt Disclosure [Abstract]

Components of Debt

The Company’s borrowings consist of the following:

	As of
	June 30, 2021		December 31, 2020
(in thousands)
5.75% unsecured notes due June 1, 2026 (1)	$	396,468	$	396,112
Revolving credit facility	76,181		74,686
Commercial note	23,750		25,250
Pinnacle Bank term loan	10,242		10,692
Pinnacle Bank line of credit	—		2,295
Other indebtedness	3,686		3,520
Total Debt	$	510,327	$	512,555
Less: current portion	(4,248)		(6,452)
Total Long-Term Debt	$	506,079	$	506,103

____________

(1)     The carrying value is net of $3.5 million and $3.9 million of unamortized debt issuance costs as of June 30, 2021 and December 31, 2020, respectively.

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Fair Value Measurements (Tables)

6 Months Ended

Jun. 30, 2021

Fair Value Disclosures [Abstract]

Schedule of Fair Value, Assets and Liabilities Measured on Recurring Basis

The Company’s financial assets and liabilities measured at fair value on a recurring basis were as follows:

	As of June 30, 2021
(in thousands)	Level 1		Level 2		Level 3		Total
Assets
Marketable equity securities (1)	$	751,440	$	—	$	—	$	751,440
Other current investments (2)	7,212		7,088		—		14,300
Total Financial Assets	$	758,652	$	7,088	$	—	$	765,740
Liabilities
Deferred compensation plan liabilities (3)	$	—	$	30,033	$	—	$	30,033
Contingent consideration liabilities (4)	—		—		14,693		14,693
Interest rate swap (5)	—		1,704		—		1,704
Mandatorily redeemable noncontrolling interest (6)	—		—		9,332		9,332
Total Financial Liabilities	$	—	$	31,737	$	24,025	$	55,762

	As of December 31, 2020
(in thousands)	Level 1		Level 2		Level 3		Total
Assets
Money market investments (7)	$	—	$	268,841	$	—	$	268,841
Marketable equity securities (1)	573,102		—		—		573,102
Other current investments (2)	10,397		4,083		—		14,480
Total Financial Assets	$	583,499	$	272,924	$	—	$	856,423
Liabilities
Deferred compensation plan liabilities (3)	$	—	$	31,178	$	—	$	31,178
Contingent consideration liabilities (4)	—		—		37,174		37,174
Interest rate swap (5)	—		2,342		—		2,342
Foreign exchange swap (8)	—		259		—		259
Mandatorily redeemable noncontrolling interest (6)	—		—		9,240		9,240
Total Financial Liabilities	$	—	$	33,779	$	46,414	$	80,193

____________

(1)	The Company’s investments in marketable equity securities are held in common shares of U.S. and Canadian corporations that are actively traded on U.S. and Canadian stock exchanges. Price quotes for these shares are readily available.
(2)	Includes U.S. Government Securities, corporate bonds, mutual funds and time deposits. These investments are valued using a market approach based on the quoted market prices of the security or inputs that include quoted market prices for similar instruments and are classified as either Level 1 or Level 2 in the fair value hierarchy.
(3)	Includes Graham Holdings Company’s Deferred Compensation Plan and supplemental savings plan benefits under the Graham Holdings Company’s Supplemental Executive Retirement Plan, which are included in accrued compensation and related benefits. These plans measure the market value of a participant’s balance in a notional investment account that is comprised primarily of mutual funds, which are based on observable market prices. However, since the deferred compensation obligations are not exchanged in an active market, they are classified as Level 2 in the fair value hierarchy. Realized and unrealized gains (losses) on deferred compensation are included in operating income.
(4)	Included in Accounts payable and accrued liabilities and Other Liabilities. The Company determined the fair value of the contingent consideration liabilities using either a Monte Carlo simulation or probability-weighted analysis depending on the type of target included in the contingent consideration requirements (revenue, EBITDA, client retention). All analyses included estimated financial projections for the acquired businesses and acquisition-specific discount rates.
(5)	Included in Other Liabilities. The Company utilized a market approach model using the notional amount of the interest rate swap multiplied by the observable inputs of time to maturity and market interest rates.
(6)	The fair value of the mandatorily redeemable noncontrolling interest is based on the fair value of the underlying subsidiaries owned by GHC One, after taking into account any debt and other noncontrolling interests of its subsidiary investments. The fair value of the owned subsidiaries is determined using enterprise value analyses which include an equal weighing between guideline public company and discounted cash flow analyses.
(7)	The Company’s money market investments are included in cash and cash equivalents and the value considers the liquidity of the counterparty.
(8)	Included in Accounts payable and accrued liabilities, and valued based on a valuation model that calculates the differential between the contract price and the market-based forward rate.

Fair Value, Liabilities Measured on Recurring Basis, Unobservable Input Reconciliation

The following table provides a reconciliation of changes in the Company’s financial liabilities measured at fair value on a recurring basis, using Level 3 inputs:

(in thousands)	Contingent consideration liabilities		Mandatorily redeemable noncontrolling interest
As of December 31, 2020	$	37,174	$	9,240
Changes in fair value (1)	(3,720)		96
Capital contributions	—		37
Accretion of value included in net income (1)	1,041		—
Settlements or distributions	(19,836)		(41)
Foreign currency exchange rate changes	34		—
As of June 30, 2021	$	14,693	$	9,332

____________

(1) Changes in fair value and accretion of value of contingent consideration liabilities are included in Selling, general and administrative expenses and the changes in fair value of mandatorily redeemable noncontrolling interest is included in Interest income and Interest expense in the Company’s Condensed Consolidated Statements of Operations.

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Revenue from Contracts with Customers (Tables)

6 Months Ended

Jun. 30, 2021

Revenue from Contract with Customer [Abstract]

Contract with Customer, Liability

The following table presents the change in the Company’s deferred revenue balance:

	As of
	June 30, 2021		December 31, 2020		%
(in thousands)					Change
Deferred revenue	$	287,706	$	343,322	(16)

Capitalized Contract Cost

The following table presents changes in the Company’s costs to obtain a contract asset:

(in thousands)	Balance at Beginning of Period		Costs associated with new contracts		Less: Costs amortized during the period		Other		Balance at End of Period
2021	$	24,363	$	16,692	$	(27,192)	$	104	$	13,967

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Earnings (Loss) Per Share (Tables)

6 Months Ended

Jun. 30, 2021

Earnings Per Share [Abstract]

Summary of Earnings (Loss) Per Share, Basic and Diluted

The following reflects the Company’s net income (loss) and share data used in the basic and diluted earnings (loss) per share computations using the two-class method:

	Three Months Ended   June 30						Six Months Ended   June 30
(in thousands, except per share amounts)	2021			2020			2021			2020
Numerator:
Numerator for basic earnings (loss) per share:
Net income (loss) attributable to Graham Holdings Company common stockholders	$	115,358		$	18,854		$	227,808		$	(14,391)
Less: Dividends paid-common stock outstanding and unvested restricted shares	(7,553)			(7,581)			(22,659)			(22,870)
Undistributed earnings (loss)	107,805			11,273			205,149			(37,261)
Percent allocated to common stockholders (1)	99.34		%	99.44		%	99.34		%	100.00		%
	107,089			11,210			203,786			(37,261)
Add: Dividends paid-common stock outstanding	7,503			7,539			22,508			22,745
Numerator for basic earnings (loss) per share	$	114,592		$	18,749		$	226,294		$	(14,516)
Add: Additional undistributed earnings due to dilutive stock options	2			—			4			—
Numerator for diluted earnings (loss) per share	$	114,594		$	18,749		$	226,298		$	(14,516)
Denominator:
Denominator for basic earnings (loss) per share:
Weighted average shares outstanding	4,968			5,196			4,968			5,235
Add: Effect of dilutive stock options	17			5			13			—
Denominator for diluted earnings (loss) per share	4,985			5,201			4,981			5,235
Graham Holdings Company Common Stockholders:
Basic earnings (loss) per share	$	23.07		$	3.61		$	45.55		$	(2.77)
Diluted earnings (loss) per share	$	22.99		$	3.60		$	45.43		$	(2.77)

_______

(1) Percent of undistributed losses allocated to common stockholders was 100% in the first six months of 2020 as participating securities are not contractually obligated to share in losses.

Antidilutive Weighted Average Restricted Stock and Options

Diluted earnings (loss) per share excludes the following weighted average potential common shares, as the effect would be antidilutive, as computed under the treasury stock method:

	Three Months Ended   June 30		Six Months Ended   June 30
(in thousands)	2021	2020	2021	2020
Weighted average restricted stock	13	10	10	10
Weighted average stock options	—	—	—	17

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Pension and Postretirement Plans (Tables)

6 Months Ended

Jun. 30, 2021

Defined Benefit Pension Plan [Member]

Schedule of Net Benefit Costs

The total benefit arising from the Company’s defined benefit pension plans consists of the following components:

	Three Months Ended   June 30				Six Months Ended   June 30
(in thousands)	2021		2020		2021		2020
Service cost	$	5,877	$	5,804	$	11,479	$	11,587
Interest cost	6,754		8,140		13,408		16,309
Expected return on assets	(33,702)		(28,290)		(68,278)		(56,734)
Amortization of prior service cost	712		707		1,423		1,415
Recognized actuarial gain	(1,671)		—		(4,563)		—
Net Periodic Benefit	(22,030)		(13,639)		(46,531)		(27,423)
Special separation benefit expense	1,118		6,014		1,118		6,014
Total Benefit	$	(20,912)	$	(7,625)	$	(45,413)	$	(21,409)

Schedule of Allocation of Plan Assets

The assets of the Company’s pension plans were allocated as follows:

	As of
	June 30, 2021		December 31, 2020
U.S. equities	60	%	58	%
Private investment fund	18	%	18	%
U.S. stock index fund	9	%	9	%
International equities	7	%	8	%
U.S. fixed income	6	%	7	%
	100	%	100	%

Supplemental Executive Retirement Plan (SERP) [Member]

Schedule of Net Benefit Costs

The total cost arising from the Company’s Supplemental Executive Retirement Plan (SERP) consists of the following components:

	Three Months Ended   June 30				Six Months Ended   June 30
(in thousands)	2021		2020		2021		2020
Service cost	$	256	$	239	$	511	$	477
Interest cost	735		920		1,471		1,839
Amortization of prior service cost	82		82		165		165
Recognized actuarial loss	1,483		1,317		2,965		2,634
Net Periodic Cost	$	2,556	$	2,558	$	5,112	$	5,115

Other Postretirement Benefit Plan, Defined Benefit [Member]

Schedule of Net Benefit Costs

Other Postretirement Plans. The total cost arising from the Company’s other postretirement plans consists of the following components:

	Three Months Ended   June 30				Six Months Ended   June 30
(in thousands)	2021		2020		2021		2020
Interest cost	$	10	$	22	$	46	$	84
Amortization of prior service credit	(2)		(121)		(4)		(241)
Recognized actuarial gain	(736)		(927)		(1,755)		(2,024)
Net Periodic Benefit	$	(728)	$	(1,026)	$	(1,713)	$	(2,181)

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Other Non-Operating Income (Tables)

6 Months Ended

Jun. 30, 2021

Other Nonoperating Income (Expense) [Abstract]

Summary of other non-operating income

A summary of non-operating income is as follows:

	Three Months Ended   June 30				Six Months Ended   June 30
(in thousands)	2021		2020		2021		2020
Gain on cost method investments	$	7,783	$	2,571	$	10,506	$	2,571
Gain on sale of cost method investments	6,699		—		6,793		518
Gain on sale of businesses	644		1,653		1,446		1,760
Foreign currency gain (loss), net	677		(1,070)		680		3,220
Gain on acquiring a controlling interest in an equity affiliate	—		3,708		—		3,708
Impairment of cost method investments	—		—		—		(2,577)
Gain on sale of equity affiliates	—		1,473		—		1,370
Other gain (loss), net	319		(235)		3,017		218
Total Other Non-Operating Income	$	16,122	$	8,100	$	22,442	$	10,788

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Accumulated Other Comprehensive Income (Loss) (Tables)

6 Months Ended

Jun. 30, 2021

Accumulated Other Comprehensive Income (Loss), Net of Tax [Abstract]

Summary of Other Comprehensive Income (Loss)

The other comprehensive income (loss) consists of the following components:

	Three Months Ended June 30
	2021						2020
	Before-Tax		Income		After-Tax		Before-Tax		Income		After-Tax
(in thousands)	Amount		Tax		Amount		Amount		Tax		Amount
Foreign currency translation adjustments:
Translation adjustments arising during the period	$	1,167	$	—	$	1,167	$	16,405	$	—	$	16,405
Pension and other postretirement plans:
Amortization of net prior service cost included in net income	792		(214)		578		668		(181)		487
Amortization of net actuarial (gain) loss included in net income	(924)		249		(675)		390		(104)		286
	(132)		35		(97)		1,058		(285)		773
Cash flow hedges:
Gain (loss) for the period	13		(3)		10		(143)		33		(110)
Other Comprehensive Income	$	1,048	$	32	$	1,080	$	17,320	$	(252)	$	17,068

	Six Months Ended June 30
	2021						2020
	Before-Tax		Income		After-Tax		Before-Tax		Income		After-Tax
(in thousands)	Amount		Tax		Amount		Amount		Tax		Amount
Foreign currency translation adjustments:
Translation adjustments arising during the period	$	681	$	—	$	681	$	(20,971)	$	—	$	(20,971)
Pension and other postretirement plans:
Amortization of net prior service cost included in net income	1,584		(427)		1,157		1,339		(362)		977
Amortization of net actuarial (gain) loss included in net income	(3,353)		905		(2,448)		610		(164)		446
	(1,769)		478		(1,291)		1,949		(526)		1,423
Cash flow hedges:
Gain (loss) for the period	634		(147)		487		(1,721)		394		(1,327)
Other Comprehensive Loss	$	(454)	$	331	$	(123)	$	(20,743)	$	(132)	$	(20,875)

Summary of Changes in Accumulated Other Comprehensive Income (Loss)

The accumulated balances related to each component of other comprehensive income (loss) are as follows:

(in thousands, net of taxes)	Cumulative Foreign Currency Translation Adjustment		Unrealized Gain on Pensions and Other Postretirement Plans		Cash Flow Hedges		Accumulated Other Comprehensive Income
Balance as of December 31, 2020	$	9,754	$	595,287	$	(1,727)	$	603,314
Other comprehensive income before reclassifications	681		—		180		861
Net amount reclassified from accumulated other comprehensive income (loss)	—		(1,291)		307		(984)
Other comprehensive income (loss), net of tax	681		(1,291)		487		(123)
Balance as of June 30, 2021	$	10,435	$	593,996	$	(1,240)	$	603,191

Summary of Amounts and Line Items of Reclassifications Out of Accumulated Other Comprehensive Income (Loss)

The amounts and line items of reclassifications out of Accumulated Other Comprehensive Income (Loss) are as follows:

	Three Months Ended   June 30				Six Months Ended   June 30				Affected Line Item in the Condensed Consolidated Statements of Operations
(in thousands)	2021		2020		2021		2020
Pension and Other Postretirement Plans:
Amortization of net prior service cost	$	792	$	668	$	1,584	$	1,339	(1)
Amortization of net actuarial (gain) loss	(924)		390		(3,353)		610		(1)
	(132)		1,058		(1,769)		1,949		Before tax
	35		(285)		478		(526)		Provision for (Benefit from) Income Taxes
	(97)		773		(1,291)		1,423		Net of Tax
Cash Flow Hedges
	153		118		307		147		Interest expense
	—		6		—		13		Provision for (Benefit from) Income Taxes
	153		124		307		160		Net of Tax
Total reclassification for the period	$	56	$	897	$	(984)	$	1,583	Net of Tax

____________

(1)    These accumulated other comprehensive income components are included in the computation of net periodic pension and postretirement plan cost (see Note 12) and are included in non-operating pension and postretirement benefit income in the Company’s Condensed Consolidated Statements of Operations.

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Business Segments (Tables)

6 Months Ended

Jun. 30, 2021

Segment Reporting Information [Line Items]

Schedule of Restructuring and Related Costs

Restructuring related costs across all businesses during the first six months of 2020 were recorded as follows:

(in thousands)	Kaplan International		Higher Education		Supplemental Education		Kaplan Corporate		Total Education		Other Businesses		Total
Severance	$	1,224	$	—	$	—	$	—	$	1,224	$	—	$	1,224
Facility related costs:
Operating lease cost	2,418		3,442		3,296		—		9,156		—		9,156
Accelerated depreciation of property, plant and equipment	1,472		95		1,801		—		3,368		—		3,368
Total Restructuring Costs Included in Segment Income (Loss) from Operations (1)	$	5,114	$	3,537	$	5,097	$	—	$	13,748	$	—	$	13,748
Impairment of other long-lived assets:
Lease right-of-use assets	3,790		2,062		2,198		—		8,050		1,405		9,455
Property, plant and equipment	1,199		174		597		—		1,970		86		2,056
Non-operating pension and postretirement benefit income, net	1,100		1,431		2,295		189		5,015		999		6,014
Total Restructuring Related Costs	$	11,203	$	7,204	$	10,187	$	189	$	28,783	$	2,490	$	31,273

(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

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

	Three months ended				Six months ended
	June 30				June 30
(in thousands)	2021		2020		2021		2020
Operating Revenues
Education	$	339,984	$	333,175	$	669,301	$	689,553
Television broadcasting	119,966		100,762		233,591		216,210
Manufacturing	141,123		83,239		257,083		196,697
Healthcare	54,696		49,181		104,739		95,175
Other businesses	145,899		86,863		249,938		188,145
Corporate office	—		—		—		—
Intersegment elimination	(516)		(349)		(1,045)		(652)
	$	801,152	$	652,871	$	1,513,607	$	1,385,128
Income (Loss) from Operations before Amortization of Intangible Assets and Impairment of Goodwill and Other Long-Lived Assets
Education	$	19,221	$	26,545	$	43,369	$	35,438
Television broadcasting	36,964		24,988		71,301		62,124
Manufacturing	19,038		5,506		34,932		19,144
Healthcare	9,375		10,125		17,296		14,604
Other businesses	(14,780)		(22,429)		(33,472)		(39,352)
Corporate office	(14,570)		(13,020)		(29,350)		(21,592)
	$	55,248	$	31,715	$	104,076	$	70,366
Amortization of Intangible Assets and Impairment of Goodwill and Other Long-Lived Assets
Education	$	6,073	$	14,291	$	11,285	$	18,492
Television broadcasting	1,361		1,361		2,720		2,721
Manufacturing	6,610		6,988		13,597		14,125
Healthcare	780		1,307		1,561		2,617
Other businesses	2,833		1,891		3,478		18,449
Corporate office	—		—		—		—
	$	17,657	$	25,838	$	32,641	$	56,404
Income (Loss) from Operations
Education	$	13,148	$	12,254	$	32,084	$	16,946
Television broadcasting	35,603		23,627		68,581		59,403
Manufacturing	12,428		(1,482)		21,335		5,019
Healthcare	8,595		8,818		15,735		11,987
Other businesses	(17,613)		(24,320)		(36,950)		(57,801)
Corporate office	(14,570)		(13,020)		(29,350)		(21,592)
	$	37,591	$	5,877	$	71,435	$	13,962
Equity in Earnings (Losses) of Affiliates, Net	1,776		1,182		15,204		(365)
Interest Expense, Net	(5,477)		(6,423)		(13,035)		(12,950)
Non-Operating Pension and Postretirement Benefit Income, Net	25,216		12,136		54,003		30,539
Gain (Loss) on Marketable Equity Securities, Net	83,698		39,890		162,912		(60,503)
Other Income, Net	16,122		8,100		22,442		10,788
Income (Loss) Before Income Taxes	$	158,926	$	60,762	$	312,961	$	(18,529)
Depreciation of Property, Plant and Equipment
Education	$	7,482	$	10,324	$	15,262	$	17,653
Television broadcasting	3,543		3,446		7,016		6,789
Manufacturing	2,427		2,526		4,944		5,053
Healthcare	331		493		648		1,033
Other businesses	2,659		5,948		4,949		8,738
Corporate office	158		176		326		351
	$	16,600	$	22,913	$	33,145	$	39,617
Pension Service Cost
Education	$	2,398	$	2,592	$	4,681	$	5,177
Television broadcasting	956		836		1,791		1,632
Manufacturing	246		395		641		789
Healthcare	108		112		280		271
Other businesses	487		403		856		866
Corporate office	1,682		1,466		3,230		2,852
	$	5,877	$	5,804	$	11,479	$	11,587

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

	As of
(in thousands)	June 30, 2021		December 31, 2020
Identifiable Assets
Education	$	1,854,482	$	1,975,104
Television broadcasting	446,499		453,988
Manufacturing	555,155		551,611
Healthcare	165,521		160,654
Other businesses	805,245		517,533
Corporate office	83,409		348,045
	$	3,910,311	$	4,006,935
Investments in Marketable Equity Securities	751,440		573,102
Investments in Affiliates	164,203		155,777
Prepaid Pension Cost	1,750,588		1,708,305
Total Assets	$	6,576,542	$	6,444,119

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				Six months ended
	June 30				June 30
(in thousands)	2021		2020		2021		2020
Operating Revenues
Kaplan international	$	181,276	$	164,713	$	353,171	$	364,328
Higher education	78,740		86,453		154,426		159,990
Supplemental education	77,911		79,785		157,566		161,073
Kaplan corporate and other	3,615		3,039		6,978		6,244
Intersegment elimination	(1,558)		(815)		(2,840)		(2,082)
	$	339,984	$	333,175	$	669,301	$	689,553
Income (Loss) From Operations before Amortization of Intangible Assets and Impairment of Long-Lived Assets
Kaplan international	$	14,077	$	16,035	$	24,284	$	35,015
Higher education	2,374		17,050		8,627		15,030
Supplemental education	8,813		330		21,310		(6,220)
Kaplan corporate and other	(6,042)		(6,870)		(10,949)		(8,392)
Intersegment elimination	(1)		—		97		5
	$	19,221	$	26,545	$	43,369	$	35,438
Amortization of Intangible Assets	$	3,914	$	4,271	$	8,079	$	8,472
Impairment of Long-Lived Assets	$	2,159	$	10,020	$	3,206	$	10,020
Income (Loss) from Operations
Kaplan international	$	14,077	$	16,035	$	24,284	$	35,015
Higher education	2,374		17,050		8,627		15,030
Supplemental education	8,813		330		21,310		(6,220)
Kaplan corporate and other	(12,115)		(21,161)		(22,234)		(26,884)
Intersegment elimination	(1)		—		97		5
	$	13,148	$	12,254	$	32,084	$	16,946
Depreciation of Property, Plant and Equipment
Kaplan international	$	4,835	$	5,619	$	10,087	$	10,197
Higher education	873		832		1,725		1,555
Supplemental education	1,670		3,772		3,246		5,711
Kaplan corporate and other	104		101		204		190
	$	7,482	$	10,324	$	15,262	$	17,653
Pension Service Cost
Kaplan international	$	77	$	120	$	148	$	232
Higher education	1,137		1,070		2,220		2,140
Supplemental education	976		1,084		1,907		2,169
Kaplan corporate and other	208		318		406		636
	$	2,398	$	2,592	$	4,681	$	5,177

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

	As of
(in thousands)	June 30, 2021		December 31, 2020
Identifiable Assets
Kaplan international	$	1,346,838	$	1,455,722
Higher education	181,508		187,123
Supplemental education	261,229		274,687
Kaplan corporate and other	64,907		57,572
	$	1,854,482	$	1,975,104

XML

Organization, Basis of Presentation and Recent Accounting Pronouncements (Organization and Basis of Presentation) (Narrative) (Details)	Jun. 30, 2021 televisionStation
Television Broadcasting [Member]
Number of television broadcast stations	7

XML

Acquisitions and Dispositions of Businesses (Acquisitions) (Narrative) (Details) $ in Thousands		3 Months Ended	6 Months Ended		12 Months Ended
	Jun. 14, 2021 USD ($)	Mar. 31, 2020 business	Jun. 30, 2021 USD ($)	Jun. 30, 2020 USD ($)	Dec. 31, 2020 USD ($) business	May 31, 2020 USD ($)
Business Acquisition [Line Items]
Number of businesses acquired | business					3
Acquisition purchase price					$ 96,800
Purchase Price Net of Cash			$ 272,428	$ 20,080
Business Acquisition, Transaction Costs			1,400	$ 1,100
Goodwill expected to be deductible for income tax purposes			43,400		$ 3,200
Automotive [Member]
Business Acquisition [Line Items]
Floor plan payables			16,400
Education [Member]
Business Acquisition [Line Items]
Number of businesses acquired | business		2			2
Education [Member] | Kaplan International [Member]
Business Acquisition [Line Items]
Number of businesses acquired | business		1
Education [Member] | Supplemental Education [Member]
Business Acquisition [Line Items]
Number of businesses acquired | business		1
Other Businesses [Member]
Business Acquisition [Line Items]
Number of businesses acquired | business					1
Other Businesses [Member] | Framebridge [Member]
Business Acquisition [Line Items]
Business Combination, Contingent Consideration, Liability						$ 50,600
Percentage of Shares Eligible to be Redeemed						20.00%
Redeemable noncontrolling interest						$ 6,000
Business Combination, Step Acquisition, Equity Interest in Acquiree, Including Subsequent Acquisition, Percentage						93.40%
Other Businesses [Member] | Leaf
Business Acquisition [Line Items]
Acquisition purchase price	$ 308,600
Stock Compensation Liabilities Assumed	$ 9,200
Pinnacle Bank Term Loan [Member]
Business Acquisition [Line Items]
Loans Payable to Bank			$ 10,242		$ 10,692

XML

Acquisitions and Dispositions of Businesses (Dispositions and Other) (Narrative) (Details) - USD ($) $ in Thousands	1 Months Ended	3 Months Ended			6 Months Ended
	Mar. 31, 2021	Jun. 30, 2021	Mar. 31, 2021	Jun. 30, 2020	Jun. 30, 2021	Jun. 30, 2020
Income Statement, Balance Sheet and Additional Disclosures by Disposal Groups, Including Discontinued Operations [Line Items]
Change in redemption value of redeemable noncontrolling interest		$ 65	$ 761
Purchase of redeemable noncontrolling interest			$ 0
Education [Member] | Higher Education [Member] | Kaplan University Transaction [Member]
Income Statement, Balance Sheet and Additional Disclosures by Disposal Groups, Including Discontinued Operations [Line Items]
Gain related to contingent consideration		$ 600		$ 1,700	$ 1,500	$ 1,800
Hoover Treated Wood Products [Member] | Manufacturing [Member]
Income Statement, Balance Sheet and Additional Disclosures by Disposal Groups, Including Discontinued Operations [Line Items]
Purchase of redeemable noncontrolling interest	$ 3,500
Ownership percentage by parent		100.00%			100.00%

XML

Acquisitions and Dispositions of Businesses (Assets Acquired and Liabilities Assumed) (Details 1) - USD ($) $ in Thousands	Jun. 30, 2021	Dec. 31, 2020
Business Acquisition [Line Items]
Goodwill	$ 1,653,607	$ 1,484,750
Series of Individually Immaterial Business Acquisitions [Member]
Business Acquisition [Line Items]
Accounts receivable	16,080	745
Inventory	777	3,496
Property, plant and equipment	6,229	3,346
Lease right-of-use assets	7,744	6,580
Goodwill	167,098	73,951
Amortized intangible assets	88,000	14,589
Other assets	4,507	975
Deferred income tax asset	40,850	15,958
Other liabilities	(49,797)	(14,917)
Current and noncurrent lease liabilities	(7,742)	(6,593)
Redeemable noncontrolling interest	0	(6,005)
Aggregate purchase price, net of cash acquired	$ 273,746	$ 92,125

XML

Acquisitions and Dispositions of Businesses (Pro Forma Financials) (Details 2) - USD ($) $ in Thousands	3 Months Ended		6 Months Ended
	Jun. 30, 2021	Jun. 30, 2020	Jun. 30, 2021	Jun. 30, 2020
Business Acquisition [Line Items]
Document Fiscal Year Focus			2021
Pro forma Operating revenues	$ 841,966	$ 704,738	$ 1,606,299	$ 1,475,834
Pro forma Net income (loss)	$ 111,086	$ 13,129	$ 217,821	$ (36,427)

XML

Investments (Narrative) (Details) £ in Millions	3 Months Ended			6 Months Ended
	Jun. 30, 2021 USD ($) investment shares	Jun. 30, 2020 USD ($)	Mar. 31, 2020 USD ($) investment	Jun. 30, 2021 USD ($) investment shares	Jun. 30, 2020 USD ($)	Jun. 30, 2021 GBP (£) investment shares	Dec. 31, 2020 USD ($) shares
Schedule of Investments [Line Items]
Money Market Investments	$ 0			$ 0			$ 268,800,000
Marketable equity securities	751,440,000			751,440,000			573,102,000
Payments to Acquire Marketable Securities				48,036,000	$ 0
Cumulative realized gain on marketable securities				27,700,000	23,000,000.0
Proceeds from sales of marketable equity securities				37,629,000	93,775,000
Cumulative undistributed income in investments in affiliates	41,600,000			41,600,000			26,100,000
Equity Method Investment Impairment			$ 3,600,000
Number of Equity Method Investments Impaired | investment			2
Cost method investments	45,100,000			45,100,000			$ 35,700,000
Gain on cost method investments	7,783,000	$ 2,571,000		10,506,000	2,571,000
Impairment of cost method investments	$ 0	0		$ 0	2,577,000
Concentration in single marketable equity security [Member]
Schedule of Investments [Line Items]
Number of marketable equity securities greater than 5% of total assets | investment	0			0		0
Equity Securities [Member] | Concentration in single marketable equity security [Member] | Assets, Total [Member]
Schedule of Investments [Line Items]
Minimum percentage of total assets considered as significant concentrations				5.00%
Markel Corporation [Member]
Schedule of Investments [Line Items]
Number of Shares Held in Investment | shares	44,430			44,430		44,430	28,000
Marketable equity securities	$ 52,700,000			$ 52,700,000			$ 28,900,000
Intersection Holdings [Member]
Schedule of Investments [Line Items]
Equity Method Investment, Ownership Percentage	12.00%			12.00%		12.00%
Framebridge [Member]
Schedule of Investments [Line Items]
Equity Method Investment Impairment			$ 2,700,000
Graham Healthcare Group [Member]
Schedule of Investments [Line Items]
Revenue from Related Parties	$ 2,700,000	$ 2,200,000		$ 5,200,000	$ 4,700,000
Graham Healthcare Group [Member] | Residential Home Health Illinois [Member]
Schedule of Investments [Line Items]
Equity Method Investment, Ownership Percentage	40.00%			40.00%		40.00%
Graham Healthcare Group [Member] | Residential Hospice Illinois [Member]
Schedule of Investments [Line Items]
Equity Method Investment, Ownership Percentage	42.50%			42.50%		42.50%
Graham Healthcare Group [Member] | Residential And Michigan Hospital Joint Venture [Member]
Schedule of Investments [Line Items]
Equity Method Investment, Ownership Percentage	40.00%			40.00%		40.00%
Graham Healthcare Group [Member] | Celtic Healthcare Allegheny Health Network Joint Venture [Member]
Schedule of Investments [Line Items]
Equity Method Investment, Ownership Percentage	40.00%			40.00%		40.00%
KIHL [Member] | York Joint Venture [Member]
Schedule of Investments [Line Items]
Equity Method Investment, Ownership Percentage	45.00%			45.00%		45.00%
Advances to Affiliate | £						£ 22.0
Loan Receivable, Payment Terms				25 years
Loan Receivable Fixed Interest Rate				7.00%

XML

Investments (Investments in Marketable Equity Securities) (Details 1) - USD ($) $ in Thousands	Jun. 30, 2021	Dec. 31, 2020
Investments [Abstract]
Total Cost	$ 276,532	$ 232,847
Gross unrealized gains	474,908	340,255
Total Fair Value	$ 751,440	$ 573,102

XML

Investments (Gain (Loss) on Marketable Equity Securities) (Details 2) - USD ($) $ in Thousands	3 Months Ended		6 Months Ended
	Jun. 30, 2021	Jun. 30, 2020	Jun. 30, 2021	Jun. 30, 2020
Investments [Abstract]
Gain (loss) on marketable equity securities, net	$ 83,698	$ 39,890	$ 162,912	$ (60,503)
Less: Net (gains) losses in earnings from marketable equity securities sold and donated	(8,161)	4,608	(8,161)	13,382
Net unrealized gains (losses) in earnings from marketable equity securities still held at the end of the period	$ 75,537	$ 44,498	$ 154,751	$ (47,121)

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Accounts Receivable, Accounts Payable and Accrued Liabilities (Narrative) (Details) - USD ($) $ in Thousands	3 Months Ended		6 Months Ended
	Jun. 30, 2021	Jun. 30, 2020	Jun. 30, 2021	Jun. 30, 2020	Dec. 31, 2020
Accounts Receivable Accounts Payable And Accrued Liabilities [Abstract]
Credit loss expense	$ 1,400	$ 4,800	$ 2,506	$ 7,241
Cash overdrafts	$ 6,600		$ 6,600		$ 2,100

XML

Accounts Receivable, Accounts Payable and Accrued Liabilities (Details 1) - USD ($) $ in Thousands	Jun. 30, 2021	Dec. 31, 2020
Accounts and Financing Receivable, after Allowance for Credit Loss [Abstract]
Receivable from contracts with customers, less estimated credit losses	$ 496,676	$ 519,577
Other receivables	19,807	17,579
Accounts receivable, net	516,483	537,156
Estimated credit losses	20,445	21,494
Accounts Payable and Accrued Liabilities, Current [Abstract]
Accounts payable	116,607	106,215
Accrued compensation and related benefits	139,125	135,493
Other accrued liabilities	256,677	278,528
Total Accounts payable and Accrued liabilities	$ 512,409	$ 520,236

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Inventories, Contracts in Progress and Vehicle Floor Plan Payable (Details) - USD ($) $ in Thousands	Jun. 30, 2021	Dec. 31, 2020
Inventory, Net of Allowances, Customer Advances and Progress Billings [Abstract]
Raw materials	$ 47,633	$ 45,382
Work-in-process	15,675	10,402
Finished goods	62,825	64,061
Contracts in progress	262	777
Inventories and contracts in progress	$ 126,395	$ 120,622

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Inventories, Contracts in Progress and Vehicle Floor Plan Payable (Narrative) (Details) - USD ($)	3 Months Ended		6 Months Ended
	Jun. 30, 2021	Jun. 30, 2020	Jun. 30, 2021	Jun. 30, 2020
Inventory [Line Items]
Weighted average interest rate	4.90%	5.10%	5.00%	5.10%
Automotive [Member]
Inventory [Line Items]
Borrowing capacity	$ 50,000,000		$ 50,000,000
Vehicle floor plan payable	16,400,000		16,400,000
Floor plan assistance	$ 800,000	$ 500,000	$ 1,400,000	$ 900,000
Automotive [Member] | Vehicle Floor Plan Facility [Member]
Inventory [Line Items]
Weighted average interest rate	1.20%	1.60%	1.20%	2.20%
London Interbank Offered Rate (LIBOR) [Member] | Automotive [Member] | Vehicle Floor Plan Facility [Member]
Inventory [Line Items]
Applicable interest rate margin			1.15%

XML

Goodwill and Other Intangible Assets (Goodwill) (Narrative) (Details) - USD ($) $ in Thousands	3 Months Ended			6 Months Ended
	Jun. 30, 2021	Jun. 30, 2020	Mar. 31, 2020	Jun. 30, 2021	Jun. 30, 2020
Goodwill [Line Items]
Impairment of goodwill and other intangible assets			$ 16,400
Impairment of goodwill and other long-lived assets	$ 3,768	$ 11,511		$ 4,815	$ 27,912
Clyde's Restaurant Group [Member] | Other Businesses [Member]
Goodwill [Line Items]
Impairment of goodwill and other intangible assets			9,700
Automotive [Member] | Other Businesses [Member]
Goodwill [Line Items]
Impairment of Intangible Assets, Indefinite-lived (Excluding Goodwill)			$ 6,700

XML

Goodwill and Other Intangible Assets (Other Intangible Assets) (Narrative) (Details) - USD ($) $ in Thousands	3 Months Ended		6 Months Ended
	Jun. 30, 2021	Jun. 30, 2020	Jun. 30, 2021	Jun. 30, 2020
Amortized Intangible Assets [Line Items]
Goodwill and intangible asset impairment charge	$ 3,768	$ 11,511	$ 4,815	$ 27,912
Amortization of Intangible Assets
Amortization of intangible assets	13,889	$ 14,327	27,826	$ 28,492
Estimated amortization of intangible assets, remainder of 2021	32,000		32,000
Estimated amortization of intangible assets, 2022	60,000		60,000
Estimated amortization of intangible assets, 2023	51,000		51,000
Estimated amortization of intangible assets, 2024	40,000		40,000
Estimated amortization of intangible assets, 2025	33,000		33,000
Estimated amortization of intangible assets, after 2025	$ 48,000		$ 48,000

XML

Goodwill and Other Intangible Assets (Changes in Carrying Amount of Goodwill) (Details 1) $ in Thousands	6 Months Ended
	Jun. 30, 2021 USD ($)
Goodwill [Roll Forward]
Goodwill, beginning balance	$ 1,838,080
Accumulated impairment losses, beginning balance	(353,330)
Goodwill, net, beginning balance	1,484,750
Acquisitions	167,098
Foreign currency exchange rate changes	1,759
Goodwill, ending balance	2,006,937
Accumulated impairment losses, ending balance	(353,330)
Goodwill, net, ending balance	1,653,607
Education [Member]
Goodwill [Roll Forward]
Goodwill, beginning balance	1,183,379
Accumulated impairment losses, beginning balance	(331,151)
Goodwill, net, beginning balance	852,228
Acquisitions	0
Foreign currency exchange rate changes	1,759
Goodwill, ending balance	1,185,138
Accumulated impairment losses, ending balance	(331,151)
Goodwill, net, ending balance	853,987
Education [Member] | Kaplan International [Member]
Goodwill [Roll Forward]
Goodwill, beginning balance	634,749
Accumulated impairment losses, beginning balance	0
Goodwill, net, beginning balance	634,749
Foreign currency exchange rate changes	1,696
Goodwill, ending balance	636,445
Accumulated impairment losses, ending balance	0
Goodwill, net, ending balance	636,445
Education [Member] | Higher Education [Member]
Goodwill [Roll Forward]
Goodwill, beginning balance	174,564
Accumulated impairment losses, beginning balance	(111,324)
Goodwill, net, beginning balance	63,240
Foreign currency exchange rate changes	0
Goodwill, ending balance	174,564
Accumulated impairment losses, ending balance	(111,324)
Goodwill, net, ending balance	63,240
Education [Member] | Supplemental Education [Member]
Goodwill [Roll Forward]
Goodwill, beginning balance	374,066
Accumulated impairment losses, beginning balance	(219,827)
Goodwill, net, beginning balance	154,239
Foreign currency exchange rate changes	63
Goodwill, ending balance	374,129
Accumulated impairment losses, ending balance	(219,827)
Goodwill, net, ending balance	154,302
Television Broadcasting [Member]
Goodwill [Roll Forward]
Goodwill, beginning balance	190,815
Accumulated impairment losses, beginning balance	0
Goodwill, net, beginning balance	190,815
Acquisitions	0
Foreign currency exchange rate changes	0
Goodwill, ending balance	190,815
Accumulated impairment losses, ending balance	0
Goodwill, net, ending balance	190,815
Manufacturing [Member]
Goodwill [Roll Forward]
Goodwill, beginning balance	234,993
Accumulated impairment losses, beginning balance	(7,616)
Goodwill, net, beginning balance	227,377
Acquisitions	0
Foreign currency exchange rate changes	0
Goodwill, ending balance	234,993
Accumulated impairment losses, ending balance	(7,616)
Goodwill, net, ending balance	227,377
Healthcare [Member]
Goodwill [Roll Forward]
Goodwill, beginning balance	98,421
Accumulated impairment losses, beginning balance	0
Goodwill, net, beginning balance	98,421
Acquisitions	0
Foreign currency exchange rate changes	0
Goodwill, ending balance	98,421
Accumulated impairment losses, ending balance	0
Goodwill, net, ending balance	98,421
Other Businesses [Member]
Goodwill [Roll Forward]
Goodwill, beginning balance	130,472
Accumulated impairment losses, beginning balance	(14,563)
Goodwill, net, beginning balance	115,909
Acquisitions	167,098
Foreign currency exchange rate changes	0
Goodwill, ending balance	297,570
Accumulated impairment losses, ending balance	(14,563)
Goodwill, net, ending balance	$ 283,007

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Goodwill and Other Intangible Assets (Other Intangible Assets) (Details 2) - USD ($) $ in Thousands	6 Months Ended	12 Months Ended
	Jun. 30, 2021	Dec. 31, 2020
Amortized Intangible Assets [Line Items]
Gross Carrying Amount	$ 569,459	$ 481,950
Accumulated Amortization	305,051	277,304
Net Carrying Amount	264,408	204,646
Indefinite-Lived Intangible Assets [Line Items]
Indefinite-Lived Intangible Assets	121,417	120,437
Trade Names and Trademarks [Member]
Indefinite-Lived Intangible Assets [Line Items]
Indefinite-Lived Intangible Assets	88,409	87,429
Franchise Agreements [Member]
Indefinite-Lived Intangible Assets [Line Items]
Indefinite-Lived Intangible Assets	21,858	21,858
FCC licenses [Member]
Indefinite-Lived Intangible Assets [Line Items]
Indefinite-Lived Intangible Assets	11,000	11,000
Licensure and Accreditation [Member]
Indefinite-Lived Intangible Assets [Line Items]
Indefinite-Lived Intangible Assets	150	150
Student and Customer Relationships [Member]
Amortized Intangible Assets [Line Items]
Gross Carrying Amount	323,848	294,077
Accumulated Amortization	193,680	178,075
Net Carrying Amount	$ 130,168	$ 116,002
Student and Customer Relationships [Member] | Minimum [Member]
Amortized Intangible Assets [Line Items]
Useful Life	2 years	2 years
Student and Customer Relationships [Member] | Maximum [Member]
Amortized Intangible Assets [Line Items]
Useful Life	10 years	10 years
Trade Names and Trademarks [Member]
Amortized Intangible Assets [Line Items]
Gross Carrying Amount	$ 160,650	$ 109,809
Accumulated Amortization	60,987	54,766
Net Carrying Amount	$ 99,663	$ 55,043
Trade Names and Trademarks [Member] | Minimum [Member]
Amortized Intangible Assets [Line Items]
Useful Life	2 years	2 years
Trade Names and Trademarks [Member] | Maximum [Member]
Amortized Intangible Assets [Line Items]
Useful Life	10 years	10 years
Network Affiliation Agreements [Member]
Amortized Intangible Assets [Line Items]
Useful Life	10 years	10 years
Gross Carrying Amount	$ 17,400	$ 17,400
Accumulated Amortization	7,757	6,888
Net Carrying Amount	9,643	10,512
Databases and Technology [Member]
Amortized Intangible Assets [Line Items]
Gross Carrying Amount	36,761	34,864
Accumulated Amortization	23,148	19,924
Net Carrying Amount	$ 13,613	$ 14,940
Databases and Technology [Member] | Minimum [Member]
Amortized Intangible Assets [Line Items]
Useful Life	3 years	3 years
Databases and Technology [Member] | Maximum [Member]
Amortized Intangible Assets [Line Items]
Useful Life	6 years	6 years
Non-compete Agreements [Member]
Amortized Intangible Assets [Line Items]
Gross Carrying Amount	$ 1,000	$ 1,000
Accumulated Amortization	989	937
Net Carrying Amount	$ 11	$ 63
Non-compete Agreements [Member] | Minimum [Member]
Amortized Intangible Assets [Line Items]
Useful Life	2 years	2 years
Non-compete Agreements [Member] | Maximum [Member]
Amortized Intangible Assets [Line Items]
Useful Life	5 years	5 years
Other [Member]
Amortized Intangible Assets [Line Items]
Gross Carrying Amount	$ 29,800	$ 24,800
Accumulated Amortization	18,490	16,714
Net Carrying Amount	$ 11,310	$ 8,086
Other [Member] | Minimum [Member]
Amortized Intangible Assets [Line Items]
Useful Life	1 year	1 year
Other [Member] | Maximum [Member]
Amortized Intangible Assets [Line Items]
Useful Life	8 years	8 years

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Debt (Narrative) (Details) $ in Thousands			3 Months Ended		6 Months Ended
		Jun. 30, 2021 USD ($)	Jun. 30, 2021 USD ($)	Jun. 30, 2020 USD ($)	Jun. 30, 2021 USD ($)	Jun. 30, 2020 USD ($)	Jun. 30, 2021 GBP (£)	Dec. 31, 2020 USD ($)
Debt Instrument [Line Items]
Average borrowings outstanding			$ 525,500	$ 510,500	$ 520,000	$ 511,200
Weighted average interest rate			4.90%	5.10%	5.00%	5.10%
Interest Expense, Net			$ (5,477)	$ (6,423)	$ (13,035)	$ (12,950)
Interest income			1,876	954	2,766	2,105
Interest expense			7,353	$ 7,377	15,801	$ 15,055
5.75% Unsecured Notes due June 1, 2026 [Member]
Debt Instrument [Line Items]
Unamortized debt issuance costs		$ 3,500	$ 3,500		$ 3,500			$ 3,900
Interest rate		5.75%	5.75%		5.75%		5.75%	5.75%
Fair value of debt instrument		$ 418,400	$ 418,400		$ 418,400			$ 421,700
Carrying value of debt instrument	[1]	396,468	396,468		396,468			396,112
Five-Year Credit Agreement dated May 30, 2018 [Member]
Debt Instrument [Line Items]
Line of credit facility outstanding		76,181	76,181		76,181		£ 55,000,000	74,686
Commercial note with Truist Bank [Member]
Debt Instrument [Line Items]
Notes Payable to Bank		23,750	23,750		23,750			25,250
Pinnacle Bank Term Loan [Member]
Debt Instrument [Line Items]
Loans Payable to Bank		10,242	10,242		10,242			10,692
Pinnacle Bank Line Of Credit [Member]
Debt Instrument [Line Items]
Line of credit facility outstanding		$ 0	$ 0		$ 0			$ 2,295
Minimum [Member] | Other Indebtedness [Member]
Debt Instrument [Line Items]
Interest rate		0.00%	0.00%		0.00%		0.00%	0.00%
Maximum [Member] | Other Indebtedness [Member]
Debt Instrument [Line Items]
Interest rate		16.00%	16.00%		16.00%		16.00%	16.00%
London Interbank Offered Rate (LIBOR) [Member] | Five-Year Credit Agreement dated May 30, 2018 [Member]
Debt Instrument [Line Items]
Applicable interest rate margin		1.50%
Securities Subject to Mandatory Redemption [Member] | Graham Healthcare Group [Member]
Debt Instrument [Line Items]
Interest Expense, Net					$ 100
Interest income			$ 1,000

[1] The carrying value is net of $3.5 million and $3.9 million of unamortized debt issuance costs as of June 30, 2021 and December 31, 2020, respectively.

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Debt (Details 1) $ in Thousands		Jun. 30, 2021 USD ($)	Jun. 30, 2021 GBP (£)	Dec. 31, 2020 USD ($)
Debt Instrument [Line Items]
Other indebtedness		$ 3,686		$ 3,520
Total Debt		510,327		512,555
Less: current portion		(4,248)		(6,452)
Total Long-Term Debt		506,079		506,103
5.75% Unsecured Notes due June 1, 2026 [Member]
Debt Instrument [Line Items]
Unsecured notes	[1]	396,468		396,112
Unamortized debt issuance costs		$ 3,500		$ 3,900
Interest rate		5.75%	5.75%	5.75%
Five-Year Credit Agreement dated May 30, 2018 [Member]
Debt Instrument [Line Items]
Credit facility		$ 76,181	£ 55,000,000	$ 74,686
Commercial note with Truist Bank [Member]
Debt Instrument [Line Items]
Commercial note		23,750		25,250
Pinnacle Bank Term Loan [Member]
Debt Instrument [Line Items]
Loans Payable to Bank		10,242		10,692
Pinnacle Bank Line Of Credit [Member]
Debt Instrument [Line Items]
Credit facility		$ 0		$ 2,295

[1] The carrying value is net of $3.5 million and $3.9 million of unamortized debt issuance costs as of June 30, 2021 and December 31, 2020, respectively.

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Fair Value Measurements (Narrative) (Details) $ in Thousands	3 Months Ended			6 Months Ended
	Jun. 30, 2021 USD ($)	Jun. 30, 2020 USD ($)	Mar. 31, 2020 USD ($) investment	Jun. 30, 2021 USD ($)	Jun. 30, 2020 USD ($)
Fair Value Measurements [Abstract]
Impairment of other long-lived assets	$ 3,800	$ 11,500		$ 4,800	$ 11,500
Impairment of goodwill and other intangible assets			$ 16,400
Gain on cost method investments	7,783	2,571		10,506	2,571
Impairment of cost method investments	$ 0	$ 0		$ 0	$ 2,577
Equity Method Investment Impairment			$ 3,600
Number of Equity Method Investments Impaired | investment			2

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Fair Value Measurements (Fair Value of Financial Assets and Liabilities) (Details 1) - USD ($)		Jun. 30, 2021	Dec. 31, 2020
Assets
Money Market Investments		$ 0	$ 268,800,000
Marketable equity securities		751,440,000	573,102,000
Fair Value, Recurring [Member]
Assets
Money Market Investments	[1]		268,841,000
Marketable equity securities	[2]	751,440,000	573,102,000
Other current investments	[3]	14,300,000	14,480,000
Total Financial Assets		765,740,000	856,423,000
Liabilities
Deferred compensation plan liabilities	[4]	30,033,000	31,178,000
Contingent consideration liabilities	[5]	14,693,000	37,174,000
Interest rate swap	[6]	1,704,000	2,342,000
Mandatorily redeemable noncontrolling interest	[7]	9,332,000	9,240,000
Foreign exchange swap	[8]		259,000
Total Financial Liabilities		55,762,000	80,193,000
Level 1 | Fair Value, Recurring [Member]
Assets
Money Market Investments	[1]		0
Marketable equity securities	[2]	751,440,000	573,102,000
Other current investments	[3]	7,212,000	10,397,000
Total Financial Assets		758,652,000	583,499,000
Liabilities
Deferred compensation plan liabilities	[4]	0	0
Contingent consideration liabilities	[5]	0	0
Interest rate swap	[6]	0	0
Mandatorily redeemable noncontrolling interest	[7]	0	0
Foreign exchange swap	[8]		0
Total Financial Liabilities		0	0
Level 2 | Fair Value, Recurring [Member]
Assets
Money Market Investments	[1]		268,841,000
Marketable equity securities	[2]	0	0
Other current investments	[3]	7,088,000	4,083,000
Total Financial Assets		7,088,000	272,924,000
Liabilities
Deferred compensation plan liabilities	[4]	30,033,000	31,178,000
Contingent consideration liabilities	[5]	0	0
Interest rate swap	[6]	1,704,000	2,342,000
Mandatorily redeemable noncontrolling interest	[7]	0	0
Foreign exchange swap	[8]		259,000
Total Financial Liabilities		31,737,000	33,779,000
Level 3 | Fair Value, Recurring [Member]
Assets
Money Market Investments	[1]		0
Marketable equity securities	[2]	0	0
Other current investments	[3]	0	0
Total Financial Assets		0	0
Liabilities
Deferred compensation plan liabilities	[4]	0	0
Contingent consideration liabilities	[5]	14,693,000	37,174,000
Interest rate swap	[6]	0	0
Mandatorily redeemable noncontrolling interest	[7]	9,332,000	9,240,000
Foreign exchange swap	[8]		0
Total Financial Liabilities		$ 24,025,000	$ 46,414,000

[1] The Company’s money market investments are included in cash and cash equivalents and the value considers the liquidity of the counterparty.

[2] The Company’s investments in marketable equity securities are held in common shares of U.S. and Canadian corporations that are actively traded on U.S. and Canadian stock exchanges. Price quotes for these shares are readily available.

[3] Includes U.S. Government Securities, corporate bonds, mutual funds and time deposits. These investments are valued using a market approach based on the quoted market prices of the security or inputs that include quoted market prices for similar instruments and are classified as either Level 1 or Level 2 in the fair value hierarchy.

[4] Includes Graham Holdings Company’s Deferred Compensation Plan and supplemental savings plan benefits under the Graham Holdings Company’s Supplemental Executive Retirement Plan, which are included in accrued compensation and related benefits. These plans measure the market value of a participant’s balance in a notional investment account that is comprised primarily of mutual funds, which are based on observable market prices. However, since the deferred compensation obligations are not exchanged in an active market, they are classified as Level 2 in the fair value hierarchy. Realized and unrealized gains (losses) on deferred compensation are included in operating income.

[5] Included in Accounts payable and accrued liabilities and Other Liabilities. The Company determined the fair value of the contingent consideration liabilities using either a Monte Carlo simulation or probability-weighted analysis depending on the type of target included in the contingent consideration requirements (revenue, EBITDA, client retention). All analyses included estimated financial projections for the acquired businesses and acquisition-specific discount rates.

[6] Included in Other Liabilities. The Company utilized a market approach model using the notional amount of the interest rate swap multiplied by the observable inputs of time to maturity and market interest rates.

[7] The fair value of the mandatorily redeemable noncontrolling interest is based on the fair value of the underlying subsidiaries owned by GHC One, after taking into account any debt and other noncontrolling interests of its subsidiary investments. The fair value of the owned subsidiaries is determined using enterprise value analyses which include an equal weighing between guideline public company and discounted cash flow analyses.

[8] Included in Accounts payable and accrued liabilities, and valued based on a valuation model that calculates the differential between the contract price and the market-based forward rate.

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Fair Value Measurements (Reconciliation of Changes in Financial Liabilities Fair Value Using Level 3 Inputs) (Details 2) - Level 3 $ in Thousands	6 Months Ended
	Jun. 30, 2021 USD ($)
Contingent consideration liabilities [Member]
Fair Value, Liabilities Measured on Recurring Basis, Unobservable Input Reconciliation, Calculation [Roll Forward]
Fair Value, Measurement with Unobservable Inputs Reconciliation, Recurring Basis, Liability Value, Beginning Balance	$ 37,174
Changes in fair value	(3,720)	[1]
Capital contributions	0
Accretion of value included in net income	1,041	[1]
Settlements or distributions	(19,836)
Foreign currency exchange rate changes	34
Fair Value, Measurement with Unobservable Inputs Reconciliation, Recurring Basis, Liability Value, Ending Balance	14,693
Mandatorily redeemable noncontrolling interest [Member]
Fair Value, Liabilities Measured on Recurring Basis, Unobservable Input Reconciliation, Calculation [Roll Forward]
Fair Value, Measurement with Unobservable Inputs Reconciliation, Recurring Basis, Liability Value, Beginning Balance	9,240
Changes in fair value	96	[1]
Capital contributions	37
Accretion of value included in net income	0	[1]
Settlements or distributions	(41)
Foreign currency exchange rate changes	0
Fair Value, Measurement with Unobservable Inputs Reconciliation, Recurring Basis, Liability Value, Ending Balance	$ 9,332

[1] Changes in fair value and accretion of value of contingent consideration liabilities are included in Selling, general and administrative expenses and the changes in fair value of mandatorily redeemable noncontrolling interest is included in Interest income and Interest expense in the Company’s Condensed Consolidated Statements of Operations.

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Income Taxes (Narrative) (Details) - USD ($) $ in Thousands	3 Months Ended		6 Months Ended
	Jun. 30, 2020	Mar. 31, 2020	Jun. 30, 2021	Jun. 30, 2020	Dec. 31, 2020
Income Taxes [Line Items]
Income Taxes Receivable			$ 16,947		$ 29,313
Accounts payable and accrued liabilities			$ 512,409		$ 520,236
Effective Income Tax Rate	69.00%	57.30%	27.00%	18.90%
CableONE [Member]
Income Taxes [Line Items]
Income Taxes Receivable			$ 15,900
Accounts payable and accrued liabilities			$ 15,900

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Revenue from Contracts with Customers (Narrative) (Details) - USD ($) $ in Millions	1 Months Ended	3 Months Ended		6 Months Ended
	Apr. 30, 2020	Jun. 30, 2021	Jun. 30, 2020	Jun. 30, 2021	Jun. 30, 2020	Dec. 31, 2020
Disaggregation of Revenue [Line Items]
Deferred revenue recognized in period related to beginning balance				$ 226.4
CARES Act relief from COVID-19 [Member] | Medicare Accelerated Advanced Payment Program Relief Fund [Member] | Graham Healthcare Group [Member]
Disaggregation of Revenue [Line Items]
Government Relief, CARES Act	$ 31.5		$ 7.4
Deferred revenue recognized		$ 5.0		$ 5.0
CARES Act relief from COVID-19 [Member] | Provider Relief Fund [Member] | Graham Healthcare Group [Member]
Disaggregation of Revenue [Line Items]
Amount of Revenue Recognized From Provider Relief Fund			$ 5.5		$ 5.5
Transferred over Time [Member]
Disaggregation of Revenue [Line Items]
Percentage of Revenue		66.00%	76.00%	68.00%	74.00%
Transferred at Point in Time [Member]
Disaggregation of Revenue [Line Items]
Percentage of Revenue		34.00%	24.00%	32.00%	26.00%
U.S. [Member]
Disaggregation of Revenue [Line Items]
Percentage of Revenue		78.00%	75.00%	77.00%	75.00%
Non-US [Member]
Disaggregation of Revenue [Line Items]
Percentage of Revenue		22.00%	25.00%	23.00%	25.00%
Kaplan International [Member]
Disaggregation of Revenue [Line Items]
Contract with Customer, Asset, Net, Noncurrent		$ 11.0		$ 11.0		$ 8.7
Supplemental Education [Member] | Long-term Contract with Customer [Member]
Disaggregation of Revenue [Line Items]
Minimum Term of Contract				12 months
Revenue Remaining Performance Obligation Percentage of Revenue Expected to be Recognized Over Next 12 Months		72.00%		72.00%

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Revenue from Contracts with Customers (Narrative 2) (Details) - Long-term Contract with Customer [Member] - Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction, Start Date [Axis]: 2021-07-01 $ in Millions	Jun. 30, 2021 USD ($)
Kaplan International [Member]
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction [Line Items]
Revenue, Remaining Performance Obligation, Amount	$ 7.0
Supplemental Education [Member]
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction [Line Items]
Revenue, Remaining Performance Obligation, Amount	$ 8.0
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction, Period	12 months

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Revenue from Contracts with Customers (Contract Liability) (Details) - USD ($) $ in Thousands	6 Months Ended
	Jun. 30, 2021	Dec. 31, 2020
Revenue from Contract with Customer [Abstract]
Deferred Revenue	$ 287,706	$ 343,322
Deferred Revenue, Period Decrease Percentage	(16.00%)

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Revenue from Contracts with Customers (Capitalized Contract Cost) (Details) - USD ($) $ in Thousands	6 Months Ended
	Jun. 30, 2021	Dec. 31, 2020
Revenue from Contract with Customer [Abstract]
Contract costs capitalized during the period	$ 16,692
Costs amortized during the period	(27,192)
Change in capitalized contract cost, other	104
Balance of costs to obtain a contract	$ 13,967	$ 24,363

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Earnings (Loss) Per Share (Narrative) (Details) - $ / shares	3 Months Ended		6 Months Ended
	Jun. 30, 2021	Jun. 30, 2020	Jun. 30, 2021	Jun. 30, 2020
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Dividends declared per common share	$ 1.51	$ 1.45	$ 4.53	$ 4.35
Stock Option Plan [Member]
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Antidilutive securities, shares	104,000	104,000	104,000	104,000

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Earnings (Loss) Per Share (Details 1) - USD ($) $ / shares in Units, shares in Thousands, $ in Thousands	3 Months Ended		6 Months Ended
	Jun. 30, 2021	Jun. 30, 2020	Jun. 30, 2021	Jun. 30, 2020
Schedule of Earnings (Loss) Per Share, Basic and Diluted, Including Two Class Method [Line Items]
Net income (loss) attributable to Graham Holdings Company common stockholders	$ 115,358	$ 18,854	$ 227,808	$ (14,391)
Less: Dividends paid-common stock outstanding and unvested restricted shares	(7,553)	(7,581)	(22,659)	(22,870)
Undistributed earnings (loss)	$ 107,805	$ 11,273	$ 205,149	$ (37,261)
Percent allocated to common stockholders	99.34%	99.44%	99.34%	100.00%
Undistributed Earnings Allocated To Common Stockholders	$ 107,089	$ 11,210	$ 203,786	$ (37,261)
Add: Dividends paid-common stock outstanding	7,503	7,539	22,508	22,745
Numerator for basic earnings (loss) per share	114,592	18,749	226,294	(14,516)
Add: Additional undistributed earnings due to dilutive stock options	2	0	4	0
Numerator for diluted earnings (loss) per share	$ 114,594	$ 18,749	$ 226,298	$ (14,516)
Weighted average shares outstanding (shares)	4,968	5,196	4,968	5,235
Denominator for diluted earnings (loss) per share (shares)	4,985	5,201	4,981	5,235
Graham Holdings Company Common Stockholders:
Basic income (loss) per common share (in usd per share)	$ 23.07	$ 3.61	$ 45.55	$ (2.77)
Diluted income (loss) per common share (in usd per share)	$ 22.99	$ 3.60	$ 45.43	$ (2.77)
Stock Option Plan [Member]
Schedule of Earnings (Loss) Per Share, Basic and Diluted, Including Two Class Method [Line Items]
Add: Effect of dilutive stock options (shares)	17	5	13	0

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Earnings (Loss) Per Share (Details 2) - shares shares in Thousands	3 Months Ended		6 Months Ended
	Jun. 30, 2021	Jun. 30, 2020	Jun. 30, 2021	Jun. 30, 2020
Restricted Stock [Member]
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Antidilutive securities, shares	13	10	10	10
Stock Option Plan [Member]
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Antidilutive securities, shares	0	0	0	17

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Pension and Postretirement Plans (Narrative) (Details) $ in Thousands	3 Months Ended			6 Months Ended
	Jun. 30, 2021 USD ($) country investment	Mar. 31, 2021	Jun. 30, 2020 USD ($)	Jun. 30, 2021 USD ($) country investment	Jun. 30, 2020 USD ($)	Dec. 31, 2020 USD ($) investment
Defined Benefit Plan Disclosure [Line Items]
Special separation benefit expense					$ 6,014
Defined Benefit Pension Plan [Member]
Defined Benefit Plan Disclosure [Line Items]
Special separation benefit expense	$ 1,118		$ 6,014	$ 1,118	$ 6,014
Percent of plan assets managed internally by the company				40.00%
Percent of plan assets managed by investment companies				60.00%
Number of investment companies actively managing plan assets | country	2			2
Percentage of total plan assets	100.00%			100.00%		100.00%
Berkshire Hathaway Common Stock [Member] | Defined Benefit Pension Plan [Member] | Investment Manager 2 [Member]
Defined Benefit Plan Disclosure [Line Items]
Defined benefit plan, target allocation maximum percentage of assets, singular equity security, without prior approval by plan administrator				20.00%
Alphabet and Berkshire Hathaway Common Stock [Member] | Defined Benefit Pension Plan [Member] | Investment Manager 1 [Member]
Defined Benefit Plan Disclosure [Line Items]
Defined benefit plan, target allocation maximum percentage of assets, singular equity security, without prior approval by plan administrator				15.00%
Foreign Investments [Member] | Defined Benefit Pension Plan [Member] | Maximum [Member] | Investment Manager 1 [Member]
Defined Benefit Plan Disclosure [Line Items]
Defined benefit plan, target allocation percentage of assets	30.00%			30.00%
Foreign Investments [Member] | Defined Benefit Pension Plan [Member] | Maximum [Member] | Investment Manager 2 [Member]
Defined Benefit Plan Disclosure [Line Items]
Defined benefit plan, target allocation percentage of assets	15.00%			15.00%
Fixed income securities [Member] | Defined Benefit Pension Plan [Member] | Minimum [Member] | Investment Manager 2 [Member]
Defined Benefit Plan Disclosure [Line Items]
Defined benefit plan, target allocation percentage of assets	10.00%			10.00%
Private investment fund [Member] | Defined Benefit Pension Plan [Member]
Defined Benefit Plan Disclosure [Line Items]
Percentage of total plan assets	18.00%			18.00%		18.00%
Single Equity Concentration [Member] | Defined Benefit Pension Plan [Member]
Defined Benefit Plan Disclosure [Line Items]
Defined benefit plan, target allocation maximum percentage of assets, singular equity security, without prior approval by plan administrator		10.00%		10.00%
Value of investments	$ 976,900			$ 976,900		$ 850,600
Percentage of total plan assets	31.00%			31.00%		30.00%
Single Equity Concentration [Member] | Equity Securities [Member] | Defined Benefit Pension Plan [Member]
Defined Benefit Plan Disclosure [Line Items]
Number of investments the company's pension plan held which individually exceed 10% of total plan assets | investment	1			1		1
Single Equity Concentration [Member] | Private investment fund [Member] | Defined Benefit Pension Plan [Member]
Defined Benefit Plan Disclosure [Line Items]
Number of investments the company's pension plan held which individually exceed 10% of total plan assets | investment	1			1		1
Concentration In Single Entity, Type Of Industry, Foreign Country Or Individual Fund [Member] | Defined Benefit Plan Assets Total [Member] | Defined Benefit Pension Plan [Member]
Defined Benefit Plan Disclosure [Line Items]
Minimum percentage of plan assets considered as significant concentrations in pension plans				10.00%
Education, Code3 and Decile [Member] | Defined Benefit Pension Plan [Member] | Separation Incentive Program [Member]
Defined Benefit Plan Disclosure [Line Items]
Special separation benefit expense			$ 6,000
Dekko [Member] | Defined Benefit Pension Plan [Member] | Separation Incentive Program [Member]
Defined Benefit Plan Disclosure [Line Items]
Special separation benefit expense	$ 1,100

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Pension and Postretirement Plans (Total Benefit/Cost) (Details 1) - USD ($) $ in Thousands	3 Months Ended		6 Months Ended
	Jun. 30, 2021	Jun. 30, 2020	Jun. 30, 2021	Jun. 30, 2020
Defined Benefit Plan Disclosure [Line Items]
Service cost	$ 5,877	$ 5,804	$ 11,479	$ 11,587
Special separation benefit expense				6,014
Net Periodic Cost (Benefit)			(45,413)	(21,409)
Defined Benefit Pension Plan [Member]
Defined Benefit Plan Disclosure [Line Items]
Service cost	5,877	5,804	11,479	11,587
Interest cost	6,754	8,140	13,408	16,309
Expected return on assets	(33,702)	(28,290)	(68,278)	(56,734)
Amortization of prior service cost (credit)	712	707	1,423	1,415
Recognized actuarial loss (gain)	(1,671)	0	(4,563)	0
Net Periodic Cost (Benefit)	(22,030)	(13,639)	(46,531)	(27,423)
Special separation benefit expense	1,118	6,014	1,118	6,014
Net Periodic Cost (Benefit)	(20,912)	(7,625)	(45,413)	(21,409)
Supplemental Executive Retirement Plan (SERP) [Member]
Defined Benefit Plan Disclosure [Line Items]
Service cost	256	239	511	477
Interest cost	735	920	1,471	1,839
Amortization of prior service cost (credit)	82	82	165	165
Recognized actuarial loss (gain)	1,483	1,317	2,965	2,634
Net Periodic Cost (Benefit)	2,556	2,558	5,112	5,115
Other Postretirement Plans [Member]
Defined Benefit Plan Disclosure [Line Items]
Interest cost	10	22	46	84
Amortization of prior service cost (credit)	(2)	(121)	(4)	(241)
Recognized actuarial loss (gain)	(736)	(927)	(1,755)	(2,024)
Net Periodic Cost (Benefit)	$ (728)	$ (1,026)	$ (1,713)	$ (2,181)

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Pension and Postretirement Plans (Asset Allocation) (Details 2) - Defined Benefit Pension Plans [Member]	Jun. 30, 2021	Dec. 31, 2020
Defined Benefit Plan Disclosure [Line Items]
Defined Benefit Plan Assets Allocation (Percent)	100.00%	100.00%
U.S. equities [Member]
Defined Benefit Plan Disclosure [Line Items]
Defined Benefit Plan Assets Allocation (Percent)	60.00%	58.00%
Private investment fund [Member]
Defined Benefit Plan Disclosure [Line Items]
Defined Benefit Plan Assets Allocation (Percent)	18.00%	18.00%
U.S. stock index fund [Member]
Defined Benefit Plan Disclosure [Line Items]
Defined Benefit Plan Assets Allocation (Percent)	9.00%	9.00%
International equities [Member]
Defined Benefit Plan Disclosure [Line Items]
Defined Benefit Plan Assets Allocation (Percent)	7.00%	8.00%
U.S. fixed income [Member]
Defined Benefit Plan Disclosure [Line Items]
Defined Benefit Plan Assets Allocation (Percent)	6.00%	7.00%

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Other Non-Operating Income (Narrative) (Details) - USD ($) $ in Thousands	3 Months Ended		6 Months Ended
	Jun. 30, 2021	Jun. 30, 2020	Jun. 30, 2021	Jun. 30, 2020
Schedule of Non-Operating Income (Expense) [Line Items]
Gain on acquiring a controlling interest in an equity affiliate	$ 0	$ 3,708	$ 0	$ 3,708
Gain on cost method investments	7,783	2,571	10,506	2,571
Gain on sale of cost method investments	6,699	0	6,793	518
Impairment of cost method investments	0	0	0	2,577
Gain on sale of equity affiliates	0	1,473	0	1,370
Framebridge [Member]
Schedule of Non-Operating Income (Expense) [Line Items]
Gain on acquiring a controlling interest in an equity affiliate		3,700
Education [Member] | Higher Education [Member] | Kaplan University Transaction [Member]
Schedule of Non-Operating Income (Expense) [Line Items]
Gain related to contingent consideration	$ 600	$ 1,700	$ 1,500	$ 1,800

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Other Non-Operating Income (Details 1) - USD ($) $ in Thousands	3 Months Ended		6 Months Ended
	Jun. 30, 2021	Jun. 30, 2020	Jun. 30, 2021	Jun. 30, 2020
Other Nonoperating Income (Expense) [Abstract]
Gain on cost method investments	$ 7,783	$ 2,571	$ 10,506	$ 2,571
Gain on sale of cost method investments	6,699	0	6,793	518
Gain on sale of businesses	644	1,653	1,446	1,760
Foreign currency gain (loss), net	677	(1,070)	680	3,220
Gain on acquiring a controlling interest in an equity affiliate	0	3,708	0	3,708
Impairment of cost method investments	0	0	0	(2,577)
Gain on sale of equity affiliates	0	1,473	0	1,370
Other gain (loss), net	319	(235)	3,017	218
Total Other Non-Operating Income	$ 16,122	$ 8,100	$ 22,442	$ 10,788

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Accumulated Other Comprehensive Income (Loss) (Components of OCI) (Details 1) - USD ($) $ in Thousands		3 Months Ended				6 Months Ended
		Jun. 30, 2021	Mar. 31, 2021	Jun. 30, 2020	Mar. 31, 2020	Jun. 30, 2021	Jun. 30, 2020
Other Comprehensive Income (Loss) [Line Items]
Other Comprehensive Income (Loss), before tax		$ 1,048		$ 17,320		$ (454)	$ (20,743)
Other Comprehensive Income (Loss), income tax		32		(252)		331	(132)
Other Comprehensive Income (Loss), Net of Tax		1,080	$ (1,203)	17,068	$ (37,943)	(123)	(20,875)
Foreign Currency Translation Adjustment [Member]
Other Comprehensive Income (Loss) [Line Items]
Other Comprehensive Income (Loss), before Reclassifications, Net of Tax						681
Reclassification from Accumulated Other Comprehensive Income, Current Period, Net of Tax						0
Other Comprehensive Income (Loss), before tax		1,167		16,405		681	(20,971)
Other Comprehensive Income (Loss), income tax		0		0		0	0
Other Comprehensive Income (Loss), Net of Tax		1,167		16,405		681	(20,971)
Pension and Other Postretirement Plans [Member]
Other Comprehensive Income (Loss) [Line Items]
Other Comprehensive Income (Loss), before Reclassifications, Net of Tax						0
Reclassification from Accumulated Other Comprehensive Income, Current Period, before Tax		(132)		1,058		(1,769)	1,949
Reclassification from AOCI, Current Period, Tax		35		(285)		478	(526)
Reclassification from Accumulated Other Comprehensive Income, Current Period, Net of Tax		(97)		773		(1,291)	1,423
Other Comprehensive Income (Loss), before tax		(132)		1,058		(1,769)	1,949
Other Comprehensive Income (Loss), income tax		35		(285)		478	(526)
Other Comprehensive Income (Loss), Net of Tax		(97)		773		(1,291)	1,423
Net Prior Service (Credit) Cost [Member]
Other Comprehensive Income (Loss) [Line Items]
Reclassification from Accumulated Other Comprehensive Income, Current Period, before Tax	[1]	792		668		1,584	1,339
Reclassification from AOCI, Current Period, Tax		(214)		(181)		(427)	(362)
Reclassification from Accumulated Other Comprehensive Income, Current Period, Net of Tax		578		487		1,157	977
Net Actuarial Gain [Member]
Other Comprehensive Income (Loss) [Line Items]
Reclassification from Accumulated Other Comprehensive Income, Current Period, before Tax	[1]	(924)		390		(3,353)	610
Reclassification from AOCI, Current Period, Tax		249		(104)		905	(164)
Reclassification from Accumulated Other Comprehensive Income, Current Period, Net of Tax		(675)		286		(2,448)	446
Cash Flow Hedges [Member]
Other Comprehensive Income (Loss) [Line Items]
Other Comprehensive Income (Loss), before Reclassifications, Net of Tax						180
Reclassification from Accumulated Other Comprehensive Income, Current Period, Net of Tax						307
Other Comprehensive Income (Loss), before tax		13		(143)		634	(1,721)
Other Comprehensive Income (Loss), income tax		(3)		33		(147)	394
Other Comprehensive Income (Loss), Net of Tax		$ 10		$ (110)		$ 487	$ (1,327)

[1] These accumulated other comprehensive income components are included in the computation of net periodic pension and postretirement plan cost (see Note 12) and are included in non-operating pension and postretirement benefit income in the Company’s Condensed Consolidated Statements of Operations.

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Accumulated Other Comprehensive Income (Loss) (AOCI balances) (Details 2) - USD ($) $ in Thousands	3 Months Ended				6 Months Ended
	Jun. 30, 2021	Mar. 31, 2021	Jun. 30, 2020	Mar. 31, 2020	Jun. 30, 2021	Jun. 30, 2020
AOCI Including Portion Attributable to Noncontrolling Interest, Net of Tax [Roll Forward]
As of	$ 3,864,839	$ 3,766,393	$ 3,212,840	$ 3,326,796	$ 3,766,393	$ 3,326,796
Other Comprehensive Income (Loss), Net of Tax	1,080	(1,203)	17,068	(37,943)	(123)	(20,875)
As of	3,975,912	3,864,839	3,213,416	$ 3,212,840	3,975,912	3,213,416
AOCI Including Portion Attributable to Noncontrolling Interest [Member]
AOCI Including Portion Attributable to Noncontrolling Interest, Net of Tax [Roll Forward]
As of		603,314			603,314
Other comprehensive income before reclassifications					861
Net amount reclassified from accumulated other comprehensive income (loss)					(984)
Other Comprehensive Income (Loss), Net of Tax					(123)
As of	603,191				603,191
Cumulative Foreign Currency Translation Adjustment [Member]
AOCI Including Portion Attributable to Noncontrolling Interest, Net of Tax [Roll Forward]
As of		9,754			9,754
Other comprehensive income before reclassifications					681
Net amount reclassified from accumulated other comprehensive income (loss)					0
Other Comprehensive Income (Loss), Net of Tax	1,167		16,405		681	(20,971)
As of	10,435				10,435
Unrealized Gain on Pensions and Other Postretirement Plans [Member]
AOCI Including Portion Attributable to Noncontrolling Interest, Net of Tax [Roll Forward]
As of		595,287			595,287
Other comprehensive income before reclassifications					0
Net amount reclassified from accumulated other comprehensive income (loss)	(97)		773		(1,291)	1,423
Other Comprehensive Income (Loss), Net of Tax	(97)		773		(1,291)	1,423
As of	593,996				593,996
Cash Flow Hedges [Member]
AOCI Including Portion Attributable to Noncontrolling Interest, Net of Tax [Roll Forward]
As of		$ (1,727)			(1,727)
Other comprehensive income before reclassifications					180
Net amount reclassified from accumulated other comprehensive income (loss)					307
Other Comprehensive Income (Loss), Net of Tax	10		$ (110)		487	$ (1,327)
As of	$ (1,240)				$ (1,240)

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Accumulated Other Comprehensive Income (Loss) (Reclassifications out of AOCI) (Details 3) - USD ($) $ in Thousands		3 Months Ended				6 Months Ended
		Jun. 30, 2021	Mar. 31, 2021	Jun. 30, 2020	Mar. 31, 2020	Jun. 30, 2021	Jun. 30, 2020
Reclassification Adjustment Out Of Accumulated Other Comprehensive Income [Line Items]
Interest expense		$ 7,353		$ 7,377		$ 15,801	$ 15,055
Provision for (Benefit from) Income Taxes		43,000		41,900		84,400	(3,500)
Net of Tax		(115,926)	$ (112,635)	(18,862)	$ 33,891	(228,561)	15,029
Reclassification out of Accumulated Other Comprehensive Income [Member]
Reclassification Adjustment Out Of Accumulated Other Comprehensive Income [Line Items]
Net of Tax		56		897		(984)	1,583
Foreign Currency Translation Adjustment [Member]
Reclassification Adjustment Out Of Accumulated Other Comprehensive Income [Line Items]
Reclassifications, net of tax						0
Pension and Other Postretirement Plans [Member]
Reclassification Adjustment Out Of Accumulated Other Comprehensive Income [Line Items]
Reclassifications, before tax		(132)		1,058		(1,769)	1,949
Provision for (Benefit from) Income Tax		35		(285)		478	(526)
Reclassifications, net of tax		(97)		773		(1,291)	1,423
Net Prior Service (Credit) Cost [Member]
Reclassification Adjustment Out Of Accumulated Other Comprehensive Income [Line Items]
Reclassifications, before tax	[1]	792		668		1,584	1,339
Provision for (Benefit from) Income Tax		(214)		(181)		(427)	(362)
Reclassifications, net of tax		578		487		1,157	977
Net Actuarial Gain [Member]
Reclassification Adjustment Out Of Accumulated Other Comprehensive Income [Line Items]
Reclassifications, before tax	[1]	(924)		390		(3,353)	610
Provision for (Benefit from) Income Tax		249		(104)		905	(164)
Reclassifications, net of tax		(675)		286		(2,448)	446
Cash Flow Hedges [Member]
Reclassification Adjustment Out Of Accumulated Other Comprehensive Income [Line Items]
Reclassifications, net of tax						307
Cash Flow Hedges [Member] | Reclassification out of Accumulated Other Comprehensive Income [Member]
Reclassification Adjustment Out Of Accumulated Other Comprehensive Income [Line Items]
Interest expense		153		118		307	147
Provision for (Benefit from) Income Taxes		0		6		0	13
Net of Tax		$ 153		$ 124		$ 307	$ 160

[1] These accumulated other comprehensive income components are included in the computation of net periodic pension and postretirement plan cost (see Note 12) and are included in non-operating pension and postretirement benefit income in the Company’s Condensed Consolidated Statements of Operations.

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Contingencies (Details) $ in Thousands	1 Months Ended
	Jun. 30, 2021 USD ($) claim	May 31, 2021 claim	Dec. 31, 2020 USD ($)
Loss Contingencies [Line Items]
Number of existing legal claims or proceedings that are likely to have a material effect on the Company's business	0
Deferred Charges and Other Assets (includes $748 and $0 of restricted cash) | $	$ 157,029		$ 146,770
Maximum [Member]
Loss Contingencies [Line Items]
Loss contingency, estimate of possible loss | $	$ 10,000
Education [Member] | Minimum [Member]
Loss Contingencies [Line Items]
Potential claims Per ED		800
Claims received	1,400

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Business Segments (Narrative) (Details) $ in Thousands	1 Months Ended	3 Months Ended		6 Months Ended
	Jun. 30, 2020 USD ($)	Jun. 30, 2020 USD ($)	Mar. 31, 2020 USD ($)	Jun. 30, 2021 segment	Jun. 30, 2020 USD ($)
Business Segments [Line Items]
Number of reportable segments | segment				6
Restructuring, Settlement and Impairment Provisions		$ 29,200			$ 31,273
Operating lease cost					9,156
Clyde's Restaurant Group [Member]
Business Segments [Line Items]
Accelerated Depreciation	$ 2,800
Education [Member] | Operating Segments [Member]
Business Segments [Line Items]
Restructuring, Settlement and Impairment Provisions					28,783
Operating lease cost					9,156
Other Businesses [Member] | Operating Segments [Member]
Business Segments [Line Items]
Restructuring, Settlement and Impairment Provisions					2,490
Operating lease cost					0
Kaplan International [Member] | Reportable Subsegments [Member] | Education [Member] | Operating Segments [Member]
Business Segments [Line Items]
Restructuring, Settlement and Impairment Provisions					11,203
Operating lease cost					2,418
Higher Education [Member] | Reportable Subsegments [Member] | Education [Member] | Operating Segments [Member]
Business Segments [Line Items]
Restructuring, Settlement and Impairment Provisions					7,204
Operating lease cost			$ 2,000		$ 3,442

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Business Segments (Restructuring) (Details 1) - USD ($) $ in Thousands		3 Months Ended		6 Months Ended
		Jun. 30, 2020	Mar. 31, 2020	Jun. 30, 2020
Restructuring Cost and Reserve [Line Items]
Severance				$ 1,224
Operating lease cost				9,156
Accelerated depreciation of property, plant and equipment				3,368
Total Restructuring Costs Included in Segment Income (Loss) from Operations (1)	[1]			13,748
Lease right-of-use assets				9,455
Property, plant and equipment				2,056
Non-operating pensions and postretirement benefit income, net				6,014
Total Restructuring Related Costs		$ 29,200		31,273
Operating Segments [Member] | Education [Member]
Restructuring Cost and Reserve [Line Items]
Severance				1,224
Operating lease cost				9,156
Accelerated depreciation of property, plant and equipment				3,368
Total Restructuring Costs Included in Segment Income (Loss) from Operations (1)	[1]			13,748
Lease right-of-use assets				8,050
Property, plant and equipment				1,970
Non-operating pensions and postretirement benefit income, net				5,015
Total Restructuring Related Costs				28,783
Operating Segments [Member] | Education [Member] | Reportable Subsegments [Member] | Kaplan International [Member]
Restructuring Cost and Reserve [Line Items]
Severance				1,224
Operating lease cost				2,418
Accelerated depreciation of property, plant and equipment				1,472
Total Restructuring Costs Included in Segment Income (Loss) from Operations (1)	[1]			5,114
Lease right-of-use assets				3,790
Property, plant and equipment				1,199
Non-operating pensions and postretirement benefit income, net				1,100
Total Restructuring Related Costs				11,203
Operating Segments [Member] | Education [Member] | Reportable Subsegments [Member] | Higher Education [Member]
Restructuring Cost and Reserve [Line Items]
Severance				0
Operating lease cost			$ 2,000	3,442
Accelerated depreciation of property, plant and equipment				95
Total Restructuring Costs Included in Segment Income (Loss) from Operations (1)	[1]			3,537
Lease right-of-use assets				2,062
Property, plant and equipment				174
Non-operating pensions and postretirement benefit income, net				1,431
Total Restructuring Related Costs				7,204
Operating Segments [Member] | Education [Member] | Reportable Subsegments [Member] | Supplemental Education [Member]
Restructuring Cost and Reserve [Line Items]
Severance				0
Operating lease cost				3,296
Accelerated depreciation of property, plant and equipment				1,801
Total Restructuring Costs Included in Segment Income (Loss) from Operations (1)	[1]			5,097
Lease right-of-use assets				2,198
Property, plant and equipment				597
Non-operating pensions and postretirement benefit income, net				2,295
Total Restructuring Related Costs				10,187
Operating Segments [Member] | Education [Member] | Kaplan Corporate and Other [Member]
Restructuring Cost and Reserve [Line Items]
Severance				0
Operating lease cost				0
Accelerated depreciation of property, plant and equipment				0
Total Restructuring Costs Included in Segment Income (Loss) from Operations (1)	[1]			0
Lease right-of-use assets				0
Property, plant and equipment				0
Non-operating pensions and postretirement benefit income, net				189
Total Restructuring Related Costs				189
Operating Segments [Member] | Other Businesses [Member]
Restructuring Cost and Reserve [Line Items]
Severance				0
Operating lease cost				0
Accelerated depreciation of property, plant and equipment				0
Total Restructuring Costs Included in Segment Income (Loss) from Operations (1)	[1]			0
Lease right-of-use assets				1,405
Property, plant and equipment				86
Non-operating pensions and postretirement benefit income, net				999
Total Restructuring Related Costs				$ 2,490

[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

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Business Segments (Information by Operating Segment) (Details 2) - USD ($) $ in Thousands	3 Months Ended		6 Months Ended
	Jun. 30, 2021	Jun. 30, 2020	Jun. 30, 2021	Jun. 30, 2020	Dec. 31, 2020
Segment Reporting Information [Line Items]
Operating Revenues	$ 801,152	$ 652,871	$ 1,513,607	$ 1,385,128
Income (Loss) from Operations before Amortization of Intangible Assets and Impairment of Goodwill and Other Long-Lived Assets	55,248	31,715	104,076	70,366
Amortization of Intangible Assets and Impairment of Goodwill and Other Long-Lived Assets	17,657	25,838	32,641	56,404
Income (Loss) from Operations	37,591	5,877	71,435	13,962
Equity in earnings (losses) of affiliates, net	1,776	1,182	15,204	(365)
Interest Expense, Net	(5,477)	(6,423)	(13,035)	(12,950)
Non-operating pension and postretirement benefit income, net	25,216	12,136	54,003	30,539
Gain (loss) on marketable equity securities, net	83,698	39,890	162,912	(60,503)
Other Income, Net	16,122	8,100	22,442	10,788
Income (Loss) Before Income Taxes	158,926	60,762	312,961	(18,529)
Depreciation of property, plant and equipment	16,600	22,913	33,145	39,617
Pension Service Cost	5,877	5,804	11,479	11,587
Identifiable Assets	3,910,311		3,910,311		$ 4,006,935
Marketable equity securities	751,440		751,440		573,102
Investments in Affiliates	164,203		164,203		155,777
Prepaid Pension Cost	1,750,588		1,750,588		1,708,305
Total Assets	6,576,542		6,576,542		6,444,119
Amortization of Intangible Assets	13,889	14,327	27,826	28,492
Impairment of goodwill and other long-lived assets	3,768	11,511	4,815	27,912
Operating Segments [Member] | Education [Member]
Segment Reporting Information [Line Items]
Operating Revenues	339,984	333,175	669,301	689,553
Income (Loss) from Operations before Amortization of Intangible Assets and Impairment of Goodwill and Other Long-Lived Assets	19,221	26,545	43,369	35,438
Amortization of Intangible Assets and Impairment of Goodwill and Other Long-Lived Assets	6,073	14,291	11,285	18,492
Income (Loss) from Operations	13,148	12,254	32,084	16,946
Depreciation of property, plant and equipment	7,482	10,324	15,262	17,653
Pension Service Cost	2,398	2,592	4,681	5,177
Identifiable Assets	1,854,482		1,854,482		1,975,104
Amortization of Intangible Assets	3,914	4,271	8,079	8,472
Impairment of goodwill and other long-lived assets	2,159	10,020	3,206	10,020
Operating Segments [Member] | Education [Member] | Reportable Subsegments [Member] | Kaplan International [Member]
Segment Reporting Information [Line Items]
Operating Revenues	181,276	164,713	353,171	364,328
Income (Loss) from Operations before Amortization of Intangible Assets and Impairment of Goodwill and Other Long-Lived Assets	14,077	16,035	24,284	35,015
Income (Loss) from Operations	14,077	16,035	24,284	35,015
Depreciation of property, plant and equipment	4,835	5,619	10,087	10,197
Pension Service Cost	77	120	148	232
Identifiable Assets	1,346,838		1,346,838		1,455,722
Operating Segments [Member] | Education [Member] | Reportable Subsegments [Member] | Higher Education [Member]
Segment Reporting Information [Line Items]
Operating Revenues	78,740	86,453	154,426	159,990
Income (Loss) from Operations before Amortization of Intangible Assets and Impairment of Goodwill and Other Long-Lived Assets	2,374	17,050	8,627	15,030
Income (Loss) from Operations	2,374	17,050	8,627	15,030
Depreciation of property, plant and equipment	873	832	1,725	1,555
Pension Service Cost	1,137	1,070	2,220	2,140
Identifiable Assets	181,508		181,508		187,123
Operating Segments [Member] | Education [Member] | Reportable Subsegments [Member] | Supplemental Education [Member]
Segment Reporting Information [Line Items]
Operating Revenues	77,911	79,785	157,566	161,073
Income (Loss) from Operations before Amortization of Intangible Assets and Impairment of Goodwill and Other Long-Lived Assets	8,813	330	21,310	(6,220)
Income (Loss) from Operations	8,813	330	21,310	(6,220)
Depreciation of property, plant and equipment	1,670	3,772	3,246	5,711
Pension Service Cost	976	1,084	1,907	2,169
Identifiable Assets	261,229		261,229		274,687
Operating Segments [Member] | Education [Member] | Kaplan Corporate and Other [Member]
Segment Reporting Information [Line Items]
Operating Revenues	3,615	3,039	6,978	6,244
Income (Loss) from Operations before Amortization of Intangible Assets and Impairment of Goodwill and Other Long-Lived Assets	(6,042)	(6,870)	(10,949)	(8,392)
Income (Loss) from Operations	(12,115)	(21,161)	(22,234)	(26,884)
Depreciation of property, plant and equipment	104	101	204	190
Pension Service Cost	208	318	406	636
Identifiable Assets	64,907		64,907		57,572
Operating Segments [Member] | Education [Member] | Intersubsegment Eliminations [Member]
Segment Reporting Information [Line Items]
Operating Revenues	(1,558)	(815)	(2,840)	(2,082)
Income (Loss) from Operations before Amortization of Intangible Assets and Impairment of Goodwill and Other Long-Lived Assets	(1)	0	97	5
Income (Loss) from Operations	(1)	0	97	5
Operating Segments [Member] | Television Broadcasting [Member]
Segment Reporting Information [Line Items]
Operating Revenues	119,966	100,762	233,591	216,210
Income (Loss) from Operations before Amortization of Intangible Assets and Impairment of Goodwill and Other Long-Lived Assets	36,964	24,988	71,301	62,124
Amortization of Intangible Assets and Impairment of Goodwill and Other Long-Lived Assets	1,361	1,361	2,720	2,721
Income (Loss) from Operations	35,603	23,627	68,581	59,403
Depreciation of property, plant and equipment	3,543	3,446	7,016	6,789
Pension Service Cost	956	836	1,791	1,632
Identifiable Assets	446,499		446,499		453,988
Operating Segments [Member] | Manufacturing [Member]
Segment Reporting Information [Line Items]
Operating Revenues	141,123	83,239	257,083	196,697
Income (Loss) from Operations before Amortization of Intangible Assets and Impairment of Goodwill and Other Long-Lived Assets	19,038	5,506	34,932	19,144
Amortization of Intangible Assets and Impairment of Goodwill and Other Long-Lived Assets	6,610	6,988	13,597	14,125
Income (Loss) from Operations	12,428	(1,482)	21,335	5,019
Depreciation of property, plant and equipment	2,427	2,526	4,944	5,053
Pension Service Cost	246	395	641	789
Identifiable Assets	555,155		555,155		551,611
Operating Segments [Member] | Healthcare [Member]
Segment Reporting Information [Line Items]
Operating Revenues	54,696	49,181	104,739	95,175
Income (Loss) from Operations before Amortization of Intangible Assets and Impairment of Goodwill and Other Long-Lived Assets	9,375	10,125	17,296	14,604
Amortization of Intangible Assets and Impairment of Goodwill and Other Long-Lived Assets	780	1,307	1,561	2,617
Income (Loss) from Operations	8,595	8,818	15,735	11,987
Depreciation of property, plant and equipment	331	493	648	1,033
Pension Service Cost	108	112	280	271
Identifiable Assets	165,521		165,521		160,654
Operating Segments [Member] | Other Businesses [Member]
Segment Reporting Information [Line Items]
Operating Revenues	145,899	86,863	249,938	188,145
Income (Loss) from Operations before Amortization of Intangible Assets and Impairment of Goodwill and Other Long-Lived Assets	(14,780)	(22,429)	(33,472)	(39,352)
Amortization of Intangible Assets and Impairment of Goodwill and Other Long-Lived Assets	2,833	1,891	3,478	18,449
Income (Loss) from Operations	(17,613)	(24,320)	(36,950)	(57,801)
Depreciation of property, plant and equipment	2,659	5,948	4,949	8,738
Pension Service Cost	487	403	856	866
Identifiable Assets	805,245		805,245		517,533
Corporate Office [Member]
Segment Reporting Information [Line Items]
Operating Revenues	0	0	0	0
Income (Loss) from Operations before Amortization of Intangible Assets and Impairment of Goodwill and Other Long-Lived Assets	(14,570)	(13,020)	(29,350)	(21,592)
Amortization of Intangible Assets and Impairment of Goodwill and Other Long-Lived Assets	0	0	0	0
Income (Loss) from Operations	(14,570)	(13,020)	(29,350)	(21,592)
Depreciation of property, plant and equipment	158	176	326	351
Pension Service Cost	1,682	1,466	3,230	2,852
Identifiable Assets	83,409		83,409		$ 348,045
Intersegment Elimination [Member]
Segment Reporting Information [Line Items]
Operating Revenues	$ (516)	$ (349)	$ (1,045)	$ (652)