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Spin-Off Costs: One-time spin-off transaction, financing, and related costs of $7.4 million and $3.5 million in
2015 and 2014, respectively, are included in discontinued operations, net of tax.
Other Discontinued Operations. In the third quarter of 2014, Kaplan completed the sale of three of its schools
in China that were previously included as part of Kaplan International that resulted in a pre-tax loss of $3.1
million. An additional school in China was sold by Kaplan in January 2015 that resulted in a pre-tax loss of $0.7
million.
On June 30, 2014, the Company and Berkshire Hathaway Inc. (Berkshire) completed a transaction, as described
in Note 7, in which Berkshire acquired a wholly owned subsidiary of the Company that included, among other
things, WPLG, a Miami-based television station; a $375.0 million gain from the WPLG sale was recorded in the
second quarter of 2014.
On October 1, 2013, the Company completed the sale of its newspaper publishing businesses for $250.0 million.
The publishing businesses sold include The Washington Post, Express, The Gazette Newspapers, Southern
Maryland Newspapers, Greater Washington Publishing, Fairfax County Times, El Tiempo Latino and related
websites (Publishing Subsidiaries). A pre-tax gain of $157.5 million was recorded on the sale (after-tax gain of
$100.0 million) in the fourth quarter of 2013.
In March 2013, the Company sold The Herald. The sale of The Herald resulted in a pre-tax loss of $0.1 million
that was recorded in the first quarter of 2013.
The results of operations of Cable ONE, the schools in China, WPLG, the Publishing Subsidiaries and The
Herald, for 2015, 2014 and 2013, where applicable, are included in the Company’s Consolidated Statements of
Operations as income from discontinued operations, net of tax. All corresponding prior period operating results
presented in the Company’s Consolidated Financial Statements and the accompanying notes have been
reclassified to reflect the discontinued operations presented. The Company did not reclassify its Consolidated
Statements of Cash Flows or prior year Consolidated Balance Sheet to reflect the discontinued operations.
In the first quarter of 2014, an after-tax adjustment of $3.0 million was made to reduce the $100.0 million after-
tax gain on the sale of the Publishing Subsidiaries previously reported in the fourth quarter of 2013, as a result of
changes in estimates related to liabilities retained as part of the sale.
The summarized income from discontinued operations, net of tax, is presented below:
Year Ended December 31
(in thousands) 2015 2014 2013
Operating revenues ........................................... $ 397,404 $ 845,114 $ 1,269,966
Operating costs and expenses ................................... (325,379) (660,180) (1,156,735)
Operating income ............................................ 72,025 184,934 113,231
Non-operating (expense) income ................................ (1,288) 74,196 (136)
Income from discontinued operations ............................. 70,737 259,130 113,095
Provision for income taxes ..................................... 27,783 98,207 40,441
Net Income from Discontinued Operations ...................... 42,954 160,923 72,654
(Loss) gain on dispositions of discontinued operations ............... (732) 351,133 157,449
Provision (benefit) for income taxes on dispositions of discontinued
operations ................................................ 52 (15,801) 57,489
Income from Discontinued Operations, Net of Tax ................ $ 42,170 $ 527,857 $ 172,614
85 GRAHAM HOLDINGS COMPANY