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10-K
GRAHAM HOLDINGS CO filed this Form 10-K on 02/23/2018
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assets at the KHE reporting unit. The KHE reporting unit failed the step one goodwill impairment test. As a result of the step two analysis, the Company recorded a $248.6 million goodwill impairment charge. The Company estimated the fair value of the KHE reporting unit utilizing a discounted cash flow model, supported by a market approach. A substantial portion of the impairment charge is due to the amount of unrecognized intangible assets identified in the step two analysis.
In addition, in the fourth quarter of 2015, Kaplan recorded intangible asset impairment charges of $0.9 million related to one of the Kaplan International businesses and $0.5 million related to a KTP business. The fair values of these intangible assets were estimated using an income approach. In November 2015, the Company announced that Trove, a digital innovation team included in other businesses, would largely be integrated into SocialCode and that Trove’s existing offerings would be discontinued. In connection with this action, the Company recorded a $2.8 million goodwill impairment charge in the fourth quarter of 2015.
Amortization of intangible assets for the years ended December 31, 2017, 2016 and 2015, was $41.2 million, $26.7 million and $19.0 million, respectively. Amortization of intangible assets is estimated to be approximately $41 million in 2018, $39 million in 2019, $36 million in 2020, $31 million in 2021, $25 million in 2022 and $66 million thereafter.
The changes in the carrying amount of goodwill, by segment, were as follows:
(in thousands)
Education
 
Television
Broadcasting
 
Other
Businesses
 
Total
As of December 31, 2015
 
 
 
 
 
 
 
Goodwill
$
1,006,096

 
$
168,345

 
$
202,814

 
$
1,377,255

Accumulated impairment losses
(350,850
)
 

 
(8,892
)
 
(359,742
)
 
655,246

 
168,345

 
193,922

 
1,017,513

Measurement period adjustment
(2,781
)
 

 
(17,243
)
 
(20,024
)
Acquisitions
161,938

 

 
22,180

 
184,118

Impairment

 

 
(1,603
)
 
(1,603
)
Dispositions

 

 
(2,800
)
 
(2,800
)
Foreign currency exchange rate changes
(54,250
)
 

 

 
(54,250
)
As of December 31, 2016
 

 
 

 
 

 
 

Goodwill
1,111,003

 
168,345

 
202,141

 
1,481,489

Accumulated impairment losses
(350,850
)
 

 
(7,685
)
 
(358,535
)
 
760,153

 
168,345

 
194,456

 
1,122,954

Acquisitions
19,174

 
22,470

 
101,505

 
143,149

Impairment

 

 
(7,616
)
 
(7,616
)
Dispositions

 

 
(412
)
 
(412
)
Foreign currency exchange rate changes
41,635

 

 

 
41,635

As of December 31, 2017
 
 
 
 
 
 
 
Goodwill
1,171,812

 
190,815

 
303,234

 
1,665,861

Accumulated impairment losses
(350,850
)
 

 
(15,301
)
 
(366,151
)
 
$
820,962

 
$
190,815

 
$
287,933

 
$
1,299,710


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