Washington Post 2015 Annual Report Download - page 73

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 in China was sold by Kaplan in January 2015.
On October 1, 2013, the Company completed the sale of its newspaper publishing businesses for $250.0 million.
The related 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). In the fourth quarter of 2013, a pre-tax gain of $157.5 million was
recorded in discontinued operations on the sale ($100.0 million after-tax gain).
In March 2013, the Company sold The Herald, a daily newspaper headquartered in Everett, WA.
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.
FINANCIAL CONDITION: CAPITAL RESOURCES AND LIQUIDITY
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.
During 2014, the Company acquired nine businesses. On April 1, 2014, Celtic Healthcare acquired VNA-TIP
Healthcare, a provider of home health and hospice services in Missouri and Illinois. On May 30, 2014, the
Company completed its acquisition of Joyce/Dayton Corp., a Dayton, OH-based manufacturer of screw jacks and
other linear motion systems. On July 3, 2014, the Company completed its acquisition of an 80% interest in
Residential Healthcare Group, Inc., the parent company of Residential Home Health and Residential Hospice,
providers of skilled home health care and hospice services in Michigan and Illinois. Residential Healthcare
Group, Inc. has a 40% ownership interest in Residential Home Health Illinois and a 42.5% ownership interest in
Residential Hospice Illinois, which are accounted for as investments in affiliates. The fair value of the
redeemable noncontrolling interest in Residential Healthcare Group, Inc. was $17.1 million at the acquisition
date, determined using a market approach. The minority shareholders have an option to put their shares to the
Company starting in 2017, and the Company has an option to buy the shares of some minority shareholders in
2020 and those of the remaining minority shareholders in 2024. The operating results of these businesses are
included in other businesses. The Company also acquired three small businesses in its education division, one
small business in its broadcasting division and two small businesses in other businesses.
During 2013, the Company acquired six businesses. On August 1, 2013, the Company completed its acquisition
of Forney Corporation, a global supplier of products and systems that control and monitor combustion processes
in electric utility and industrial applications. The operating results for Forney are included in other businesses.
The Company also acquired four small businesses in other businesses and one small business in its education
division. In the second quarter of 2013, Kaplan purchased the remaining 15% noncontrolling interest in Kaplan
China; this additional interest was accounted for as an equity transaction.
In January and February 2016, Kaplan acquired Mander Portman Woodward, a leading provider of high-quality,
bespoke education to U.K. and international students in London, Cambridge and Birmingham; and Osborne
2015 FORM 10-K 58