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8-K
GRAHAM HOLDINGS CO filed this Form 8-K on 02/23/2018
Entire Document
 


NON-GAAP FINANCIAL INFORMATION
GRAHAM HOLDINGS COMPANY
(Unaudited)
 
In addition to the results reported in accordance with accounting principles generally accepted in the United States (GAAP) included in this press release, the Company has provided information regarding income from continuing operations excluding certain items described below reconciled to the most directly comparable GAAP measures. Management believes that these non-GAAP measures, when read in conjunction with the Company’s GAAP financials, provide useful information to investors by offering:
the ability to make meaningful period-to-period comparisons of the Company’s ongoing results;
the ability to identify trends in the Company’s underlying business; and
a better understanding of how management plans and measures the Company’s underlying business.
Income from continuing operations excluding certain items should not be considered substitutes or alternatives to computations calculated in accordance with and required by GAAP. These non-GAAP financial measures should be read only in conjunction with financial information presented on a GAAP basis. 
The following table reconciles the non-GAAP financial measures to the most directly comparable GAAP measures:
  
Three Months Ended December 31
 
2017
 
2016
(in thousands, except per share amounts)
Income before income taxes
 
Income Taxes
 
Net Income
 
Income before income taxes
 
Income Taxes
 
Net Income
Amounts attributable to Graham Holdings Company Common Stockholders
 
 
 
 
  
 
 
 
 
 
  
As reported
$
54,860

 
$
(159,700
)
 
$
214,560

 
$
64,118

 
$
27,200

 
$
36,918

Attributable to noncontrolling interests
 
 
 
 
(382
)
 
 
 
 
 

Attributable to Graham Holdings Company Stockholders
 
 
 
 
214,178

 
 
 
 
 
36,918

Adjustments:
 
 
 
 
  
 
 
 
 
 
  

Restructuring charges
7,181

 
2,657

 
4,524

 
6,973

 
2,441

 
4,532

Settlement gain related to a bulk lump sum pension offering

 

 

 
(17,993
)
 
(7,197
)
 
(10,796
)
Loss from the sales of marketable securities

 

 

 
8,135

 
3,091

 
5,044

Write-downs of cost method and equity method investments

 

 

 
22,592

 
8,133

 
14,459

Foreign currency loss
3,298

 
1,220

 
2,078

 
6,567

 
2,364

 
4,203

Net deferred tax benefits related to the enactment of the Tax Cuts and Jobs Act

 
177,532

 
(177,532
)
 

 

 

Net Income, adjusted (non-GAAP)
 
 
 
 
$
43,248

 
 
 
 
 
$
54,360

 
 
 
 
 
 
 
 
 
 
 
 
Per share information attributable to Graham Holdings Company Common Stockholders
 
 
 
 
  
 
 
 
 
 
  
Diluted income per common share, as reported
 
 
 
 
$
38.52

 
 
 
 
 
$
6.57

Adjustments:
 
 
 
 
  
 
 
 
 
 
  
Restructuring charges
 
 
 
 
0.81

 
 
 
 
 
0.81

Settlement gain related to a bulk lump sum pension offering
 
 
 
 

 
 
 
 
 
(1.92
)
Loss from the sales of marketable securities
 
 
 
 

 
 
 
 
 
0.90

Write-downs of cost method and equity method investments
 
 
 
 

 
 
 
 
 
2.57

Foreign currency loss
 
 
 
 
0.37

 
 
 
 
 
0.75

Net deferred tax benefits related to the enactment of the Tax Cuts and Jobs Act
 
 
 
 
(31.93
)
 
 
 
 
 

Diluted income per common share, adjusted (non-GAAP)
 
 
 
 
$
7.77

 
 
 
 
 
$
9.68

 
 
 
 
 
 
 
 
 
 
 
 
The adjusted diluted per share amounts may not compute due to rounding.


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