Washington Post 2015 Annual Report Download - page 67

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In the third quarter of 2014, Kaplan completed the sale of three of its schools in China that were previously part
of Kaplan International. An additional school was sold by Kaplan in January 2015.
In the second quarter of 2014, the Company closed on the Berkshire exchange transaction, which included the
disposition of WPLG, the Company’s Miami-based television station.
As a result of these transactions, income from continuing operations excludes the operating results and related
net gain on dispositions of these businesses, which have been reclassified to discontinued operations, net of tax,
for all periods presented.
RESULTS OF OPERATIONS — 2014 COMPARED TO 2013
Net income attributable to common shares was $1,293.0 million ($195.03 per share) for the year ended
December 31, 2014, compared to $236.0 million ($32.05 per share) for the year ended December 31, 2013. Net
income includes $527.9 million ($79.63 per share) and $172.6 million ($23.44 per share) in income from
discontinued operations for 2014 and 2013, respectively. Income from continuing operations attributable to
common shares was $765.1 million ($115.40 per share) for 2014, compared to $63.4 million ($8.61 per share) for
2013.
In connection with the Berkshire exchange transaction that closed on June 30, 2014, the Company acquired
1,620,190 shares of its Class B common stock, resulting in 11% fewer diluted shares outstanding in 2014.
Items included in the Company’s income from continuing operations for 2014 are listed below:
• $31.6 million in restructuring charges and early retirement program expense and related charges at the
education division and the corporate office (after-tax impact of $20.2 million, or $3.05 per share);
• $17.3 million noncash intangible and other long-lived assets impairment charges at Kaplan and other
businesses (after-tax impact of $11.2 million, or $1.69 per share);
• $396.6 million gain from the sale of Classified Ventures (after-tax impact of $249.8 million, or $37.68
per share);
• $90.9 million gain from the Classified Ventures’ sale of apartments.com (after-tax impact of $58.2
million, or $8.78 per share);
• $266.7 million gain from the tax-free Berkshire exchange transaction (after-tax impact of $266.7
million, or $40.23 per share);
• $127.7 million gain on the sale of the corporate headquarters building (after-tax impact of $81.8
million, or $12.34 per share); and
• $11.1 million in non-operating unrealized foreign currency losses (after-tax impact of $7.1 million, or
$1.08 per share).
Items included in the Company’s income from continuing operations for 2013 are listed below:
• $36.4 million in severance and restructuring charges at the education division (after-tax impact of
$25.3 million, or $3.46 per share);
• a $3.3 million noncash intangible assets impairment charge at Kaplan (after-tax impact of $3.2 million,
or $0.44 per share);
• a $10.4 million write-down of a marketable equity security (after-tax impact of $6.7 million, or $0.91
per share); and
• $13.4 million in non-operating unrealized foreign currency losses (after-tax impact of $8.6 million, or
$1.17 per share).
2015 FORM 10-K 52