Washington Post 2015 Annual Report Download - page 74

Download and view the complete annual report

Please find page 74 of the 2015 Washington Post annual report below. You can navigate through the pages in the report by either clicking on the pages listed below, or by using the keyword search tool below to find specific information within the annual report.

Page out of 152

  • 1
  • 2
  • 3
  • 4
  • 5
  • 6
  • 7
  • 8
  • 9
  • 10
  • 11
  • 12
  • 13
  • 14
  • 15
  • 16
  • 17
  • 18
  • 19
  • 20
  • 21
  • 22
  • 23
  • 24
  • 25
  • 26
  • 27
  • 28
  • 29
  • 30
  • 31
  • 32
  • 33
  • 34
  • 35
  • 36
  • 37
  • 38
  • 39
  • 40
  • 41
  • 42
  • 43
  • 44
  • 45
  • 46
  • 47
  • 48
  • 49
  • 50
  • 51
  • 52
  • 53
  • 54
  • 55
  • 56
  • 57
  • 58
  • 59
  • 60
  • 61
  • 62
  • 63
  • 64
  • 65
  • 66
  • 67
  • 68
  • 69
  • 70
  • 71
  • 72
  • 73
  • 74
  • 75
  • 76
  • 77
  • 78
  • 79
  • 80
  • 81
  • 82
  • 83
  • 84
  • 85
  • 86
  • 87
  • 88
  • 89
  • 90
  • 91
  • 92
  • 93
  • 94
  • 95
  • 96
  • 97
  • 98
  • 99
  • 100
  • 101
  • 102
  • 103
  • 104
  • 105
  • 106
  • 107
  • 108
  • 109
  • 110
  • 111
  • 112
  • 113
  • 114
  • 115
  • 116
  • 117
  • 118
  • 119
  • 120
  • 121
  • 122
  • 123
  • 124
  • 125
  • 126
  • 127
  • 128
  • 129
  • 130
  • 131
  • 132
  • 133
  • 134
  • 135
  • 136
  • 137
  • 138
  • 139
  • 140
  • 141
  • 142
  • 143
  • 144
  • 145
  • 146
  • 147
  • 148
  • 149
  • 150
  • 151
  • 152

Books, a leading educational publisher of learning resources for accounting qualifications in the U.K., for
approximately $205 million, both of which will be included in Kaplan International.
Spin-Off. On July 1, 2015, the Company completed the spin-off of Cable ONE, by way of a distribution of all
the issued and outstanding shares of Cable ONE common stock, on a pro rata basis, to the Company’s
stockholders.
Sale of Businesses. On September 3, 2015, Kaplan completed the sale of substantially all of the assets of its
KHE Campuses business, consisting of 38 nationally accredited ground campuses and certain related assets, in
exchange for a preferred equity interest in Education Corporation of America (ECA). KHE Campuses schools
that have been closed or are in the process of closing are not included in the sale transaction. In connection with
the sale agreement, if required by the U.S. Department of Education (ED) in connection with its post-closing
review of the transaction, Kaplan will provide a letter of credit or other credit support with the ED of up to
approximately $45 million; any such letter of credit or other credit support could be drawn by the ED in the event
that ECA defaults on its obligations to students. If issued, such letter of credit or other credit support would have
a term of two years, after which Kaplan would have no further obligations.
In the third quarter of 2015, Kaplan sold Franklyn Scholar, which was part of Kaplan International. In the second
quarter of 2015, the Company sold The Root, a component of Slate, and Kaplan sold two small businesses,
Structuralia, which was part of Kaplan International, and Fire and EMS Training, which was part of Kaplan
Higher Education. As a result of these sales, the Company reported net losses in other non-operating (expense)
income.
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. In January 2015, Kaplan completed the sale of an additional school in
China.
On October 1, 2013, the Company completed the sale of its Publishing Subsidiaries that together conducted most
of the Company’s publishing business and related services, including publishing The Washington Post, Express,
The Gazette Newspapers, Southern Maryland Newspapers, Greater Washington Publishing, Fairfax County
Times, El Tiempo Latino and related websites. In March 2013, the Company completed the sale of The Herald, a
daily and Sunday newspaper headquartered in Everett, WA.
In January 2016, Kaplan completed the sale of Colloquy, which is included in Kaplan Corporate and Other.
Exchanges. On June 30, 2014, the Company and Berkshire Hathaway Inc. completed a previously announced
transaction in which Berkshire acquired a wholly owned subsidiary of the Company that included, among other
things, WPLG, a Miami-based television station, 2,107 Class A Berkshire shares and 1,278 Class B Berkshire
shares owned by Graham Holdings and $327.7 million in cash, in exchange for 1,620,190 shares of Graham
Holdings Class B common stock owned by Berkshire Hathaway (Berkshire exchange transaction). As a result,
income from continuing operations for the second quarter of 2014 includes a $266.7 million gain from the sale of
the Berkshire Hathaway shares, and income from discontinued operations for the second quarter of 2014 includes
a $375.0 million gain from the WPLG exchange.
Other. In January 2015, Celtic and Allegheny Health Network closed on the formation of a joint venture to
combine each other’s home health and hospice assets in the western Pennsylvania region. Although Celtic
manages the operations of the joint venture, Celtic holds a 40% interest in the joint venture, so the operating
results of the joint venture are not consolidated and the pro rata operating results are included in the Company’s
equity in earnings of affiliates. Celtic’s revenues from the western Pennsylvania region that are now part of the
joint venture made up 29% of total Celtic revenues in 2014.
The Company’s income from continuing operations excludes Cable ONE, the sold Kaplan China schools,
WPLG, the Publishing Subsidiaries and The Herald, which have been reclassified to discontinued operations.
59 GRAHAM HOLDINGS COMPANY