Washington Post 2013 Annual Report Download - page 101

KHE incurred restructuring costs of $19.5 million, $23.4 million
and $13.2 million in 2013, 2012 and 2011, respectively,
primarily from accelerated depreciation and severance and lease
obligations. In 2013 and 2012, these costs were incurred in
connection with a plan announced in September 2012 for KHE to
close or consolidate operations at 13 ground campuses, along with
plans to consolidate facilities and reduce workforce at its online
programs. The 2011 costs were primarily severance costs from
workforce reduction programs.
Kaplan International incurred restructuring costs of $5.8 million,
$16.4 million and $1.0 million in 2013, 2012 and 2011,
respectively. These restructuring costs were largely in Australia,
where Kaplan is consolidating and restructuring its businesses, and
included lease obligations, accelerated depreciation and severance
charges.
In 2010, KTP began implementing a plan to reorganize its business
consistent with the migration of students to Kaplan’s online and
hybrid test preparation offerings, reducing the number of leased test
preparation centers. In 2011, implementation of the plan was
completed and $12.5 million in lease and severance obligations
and accelerated depreciation was recorded.
Total accrued restructuring costs at Kaplan were $17.6 million at
the end of each of 2013 and 2012.
In the second quarter of 2012, Kaplan International results
benefited from a favorable $3.9 million out of period expense
adjustment related to certain items in 2011 and 2010. With
respect to this out of period expense adjustment, the Company has
concluded that it was not material to the Company’s financial
position or results of operations for 2013, 2012 and 2011 and the
related interim periods, based on its consideration of quantitative
and qualitative factors.
Cable. Cable operations consist of cable systems offering video,
Internet, phone and other services to subscribers in midwestern,
western and southern states. The principal source of revenue is
monthly subscription fees charged for services.
Television Broadcasting. Television broadcasting operations are
conducted through six VHF television stations serving the Detroit,
Houston, Miami, San Antonio, Orlando and Jacksonville television
markets. All stations are network-affiliated (except for WJXT in
Jacksonville), with revenues derived primarily from sales of
advertising time.
Other Businesses. Other businesses includes the results of SocialCode,
a marketing solutions provider helping companies with marketing on
social-media platforms; Celtic Healthcare, a provider of home health
and hospice services in the northeastern and mid-Atlantic regions,
acquired by the Company in November 2012; Forney, a global
supplier of products and systems that control and monitor combustion
processes in electric utility and industrial applications, acquired by the
Company in August 2013; and Trove, a digital team focused on
emerging technologies and new product development. Also included
are The Slate Group and FP Group, previously included as part of the
Company’s newspaper publishing division, which publish online and
print magazines and websites.
Corporate Office. Corporate office includes the expenses of the
Company’s corporate office and a net pension credit.
Geographical Information. The Company’s non-U.S. revenues in
2013, 2012 and 2011 totaled approximately $672 million,
$644 million and $594 million, respectively, primarily from
Kaplan’s operations outside the U.S. The Company’s long-lived
assets in non-U.S. countries (excluding goodwill and other
intangible assets), totaled approximately $66 million and $58
million at December 31, 2013 and 2012, respectively.
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