Washington Post 2015 Annual Report Download - page 103

Depreciation expense was $77.9 million, $74.9 million and $101.2 million in 2015, 2014 and 2013, respectively.
In the second quarter of 2015, as a result of the sale of Kaplan’s KHE Campuses business, Kaplan recorded a
$6.9 million impairment charge. In 2014, as a result of restructuring activities at KHE Campuses, Kaplan
recorded an impairment charge of $13.6 million. The Company estimated the fair value of the property, plant,
and equipment using a market approach.
7. ACQUISITIONS AND DISPOSITIONS OF BUSINESSES
Acquisitions. The Company completed business acquisitions totaling approximately $163.3 million in 2015;
$210.2 million in 2014; and $23.8 million in 2013. The assets and liabilities of the companies acquired have been
recorded at their estimated fair values at the date of acquisition.
During 2015, the Company acquired two businesses. On November 13, 2015, the Company acquired a 100%
interest in Group Dekko, a Garrett, IN-based manufacturer of electrical solutions for applications across three
business lines: workspace power solutions, architectural lighting, and electrical components and assemblies,
which is included in other businesses. On December 22, 2015, Kaplan acquired SmartPros, a leading provider of
accredited professional education and training, primarily in accountancy, which is included in Higher Education.
Acquisition-related costs were expensed as incurred and were not significant. The aggregate purchase price of
these 2015 acquisitions was allocated as follows on a preliminary basis:
(in thousands)
Weighted
Average Life
Purchase Price
Allocation
Cash and cash equivalents ..................... $ 3,501
Accounts receivable ......................... 30,537
Inventory .................................. 20,593
Other current assets .......................... 1,013
Property, plant and equipment ................. 28,872
Goodwill .................................. 76,156
Indefinite-lived intangible assets
Trade names and trademarks ............... 7,400
Amortized intangible assets
Student and customer relationships ......... 7years 22,200
Trade names and trademarks ............... 7years 1,800
Other ................................. 6years 7,900
6 years 31,900
Other noncurrent assets ....................... 200
Current liabilities ............................ (28,826)
Noncurrent liabilities ......................... (8,066)
$163,280
The fair values recorded were based upon preliminary valuations and the estimates and assumptions used in such
valuations are subject to change, which could be significant, within the measurement period (up to one year from
the acquisition date). The recording of deferred tax assets or liabilities, working capital, and the final amount of
residual goodwill are not yet finalized. The Company expects to deduct $20.0 million of goodwill for income tax
purposes from these two acquisitions.
2015 FORM 10-K 88