Graham Holdings CoGHC
Graham Holdings Co Segments Disclosure
BUSINESS SEGMENTS
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Basis of Presentation. The Company’s organizational structure is based on a number of factors that management uses to evaluate, view and run its business operations, which include, but are not limited to, customers, the nature of products and services and use of resources. The business segments disclosed in the Consolidated Financial Statements are based on this organizational structure and information reviewed by the Company’s management to evaluate the business segment results.
To meet the quantitative threshold related to operating income for separate disclosure, the Company changed the presentation of its segments in the fourth quarter of 2025 into the following seven reportable segments: Kaplan International, Kaplan Higher Education, Kaplan Supplemental Education, Television Broadcasting, CSI, Manufacturing and Automotive. Segment operating results have been updated to reflect this change. The Company defines its operating segments as those operations whose results the chief operating decision maker (CODM), who is our Chief Executive Officer, regularly reviews to analyze performance and allocate resources.
The Company and CODM use both operating income before amortization of intangible assets and impairment of goodwill and other long-lived assets and earnings before interest, income taxes, depreciation, amortization and pension service cost (EBITDAP) to evaluate segment performance and allocate resources to the Company’s segments. The CODM uses reports provided during annual budget presentations, the three-year forecasting process, quarterly business reviews and monthly management reports and related communication when making decisions about allocating capital resources across segments. The accounting policies at the segments are the same as described in Note 2. In computing operating income before amortization by segment, the effects of amortization of intangible assets, impairment of goodwill and other long-lived assets, equity in earnings (losses) of affiliates, interest income, interest expense, non-operating pension and postretirement benefit income, other non-operating income and expense items and income taxes are excluded. In computing EBITDAP, the effects of pension service cost, depreciation, amortization of intangible assets, impairment of goodwill and other long-lived assets, equity in earnings (losses) of affiliates, interest income, interest expense, non-operating pension and postretirement benefit income, other non-operating income and expense items and income taxes are excluded. Intersegment sales are not material.
Identifiable assets by segment are those assets used in the Company’s operations in each business segment. The investments in marketable equity securities and affiliates, and prepaid pension cost are not included in identifiable assets by segment. Investments in marketable equity securities are discussed in Note 4.
Education. Education products and services are provided by Kaplan. KI includes professional training and postsecondary education businesses largely outside the U.S., as well as English-language programs. KHE includes the results as a service provider to higher education institutions. Supplemental Education includes Kaplan’s standardized test preparation, domestic professional and other continuing education businesses.
As of December 31, 2025, Kaplan had a total outstanding accounts receivable balance of $87.4 million from Purdue Global related to amounts due for reimbursements for services, fees earned and a deferred fee. Included in this total, Kaplan has a $1.1 million long-term receivable balance and an $18.8 million short-term receivable balance due from Purdue Global at December 31, 2025, related to the advance of $20.0 million during the initial KU Transaction.
Television Broadcasting. Television broadcasting operations are conducted through seven television stations serving the Detroit, Houston, San Antonio, Orlando, Jacksonville and Roanoke television markets. All stations are network-affiliated (except for WJXT in Jacksonville), with revenues derived primarily from sales of advertising time. In addition, the stations generate revenue from retransmission consent agreements for the right to carry their signals.
Healthcare. Healthcare provides nursing care and prescription services for patients receiving in-home infusion treatments through its 87.5% interest in CSI. The healthcare division also provides home health, hospice and palliative services; ABA therapy; physician services for allergy, asthma and immunology patients; in-home aesthetics; and healthcare software-as-a-service technology.
Manufacturing. Manufacturing operations include Hoover, an Augusta, GA-based supplier of pressure impregnated kiln-dried lumber and plywood products for fire retardant and preservative applications; Dekko, a Garrett, IN-based manufacturer of electrical workspace solutions, architectural lighting, and electrical components and assemblies; Joyce/Dayton, a Dayton, OH-based manufacturer of screw jacks and other linear motion systems; and Forney, a global supplier of products and systems that control and monitor combustion processes in electric utility and industrial applications. On July 15, 2025, Hoover acquired Arconic Architectural Products, LLC, a wholly-owned subsidiary of Arconic Corporate (operating as Hoover Architectural Solutions), an Eastman, GA-based manufacturer of aluminum cladding products.
Automotive. Automotive includes eight automotive dealerships and valet repair services in the Washington, D.C. metropolitan area and Richmond, VA, including Lexus of Rockville; Honda of Tysons Corner; Ford of Manassas; Toyota of Woodbridge; CDJR of Woodbridge; Toyota of Richmond, which was acquired in September 2023; and Honda of Woodbridge, which was acquired in October 2025. The automotive group was awarded a Kia Open Point dealership in Bethesda, MD, which commenced operations at the end of December 2023. The Company decided to cease operations at Jeep of Bethesda in September 2025.
Other Businesses. Other businesses includes the following:
•Clyde’s Restaurant Group owns and operates 14 restaurants and entertainment venues in the Washington, D.C. metropolitan area.
•Framebridge, a custom framing company.
•Code3, a marketing solutions provider; the Slate Group and Foreign Policy, which publish online and print magazines and websites; Saatchi Art and Society6, which offer art and designs of various consumer products; and three investment stage businesses, Decile, City Cast and Supporting Cast. Other businesses also includes Pinna, which merged with another entity in June 2023 resulting in the deconsolidation of the subsidiary and WGB, which was disposed of by the end of the third quarter of 2025.
Corporate Office. Corporate office includes the expenses of the Company’s corporate office, defined benefit pension expense, and certain continuing obligations related to prior business dispositions.
Geographical Information. The Company’s non-U.S. revenues in 2025, 2024 and 2023 totaled approximately $1,074 million, $1,042 million and $930 million, respectively, primarily from Kaplan’s operations outside the U.S. Additionally, revenues in 2025, 2024 and 2023 totaled approximately $609 million, $618 million, and $543 million, respectively, from Kaplan’s operations in the U.K. The Company’s long-lived assets in non-U.S. countries (excluding goodwill and other intangible assets), totaled approximately $440 million and $455 million at December 31, 2025 and 2024, respectively.
The Company’s segment information is as follows:
| Year Ended December 31, 2025 | |||||||||||||||||||||||||||||||||||
| (in thousands) | Education | Television Broadcasting | Healthcare | Manufacturing | Automotive | Total Segments | |||||||||||||||||||||||||||||
| Operating Revenues | $ | 1,744,332 | $ | 425,106 | $ | 815,049 | $ | 436,279 | $ | 1,133,153 | $ | 4,553,919 | |||||||||||||||||||||||
| Reconciliation of Revenue | |||||||||||||||||||||||||||||||||||
Other Businesses and Corporate Office Revenues (1) | 360,139 | ||||||||||||||||||||||||||||||||||
| Intersegment Elimination | (2,495) | ||||||||||||||||||||||||||||||||||
| Total Consolidated Revenues | $ | 4,911,563 | |||||||||||||||||||||||||||||||||
Less: Significant Expenses (2) | |||||||||||||||||||||||||||||||||||
Cost of Revenue (3) | 659,029 | 503,855 | 316,467 | 964,648 | 2,443,999 | ||||||||||||||||||||||||||||||
Payroll and Fringe Benefits Expense (4) | 484,293 | 107,076 | 78,967 | 670,336 | |||||||||||||||||||||||||||||||
| Occupancy Expense | 108,805 | 7,692 | 116,497 | ||||||||||||||||||||||||||||||||
| Advertising and Marketing Expense | 78,260 | 78,260 | |||||||||||||||||||||||||||||||||
| Networking and Programming Expense | 123,725 | 123,725 | |||||||||||||||||||||||||||||||||
Management Services (5) | 8,393 | 8,393 | |||||||||||||||||||||||||||||||||
Other Segment Items (6) | 201,201 | 60,383 | 196,483 | 72,202 | 38,374 | 568,643 | |||||||||||||||||||||||||||||
EBITDAP | $ | 212,744 | $ | 133,922 | $ | 114,711 | $ | 47,610 | $ | 35,079 | $ | 544,066 | |||||||||||||||||||||||
| Pension Service Cost | 17,271 | 5,901 | 9,984 | 3,461 | 63 | $ | 36,680 | ||||||||||||||||||||||||||||
| Depreciation Expense | 29,477 | 10,311 | 7,303 | 12,481 | 6,961 | $ | 66,533 | ||||||||||||||||||||||||||||
| Income from Operations before Amortization of Intangible Assets and Impairment of Intangible and Other Long-Lived Assets | $ | 165,996 | $ | 117,710 | $ | 97,424 | $ | 31,668 | $ | 28,055 | $ | 440,853 | |||||||||||||||||||||||
Other Businesses (7) | (94,164) | ||||||||||||||||||||||||||||||||||
| Corporate Costs | (67,367) | ||||||||||||||||||||||||||||||||||
| Amortization of Intangible Assets | (32,040) | ||||||||||||||||||||||||||||||||||
| Impairment of Intangible and Other Long-Lived Assets | (12,335) | ||||||||||||||||||||||||||||||||||
| Income from Operations | $ | 234,947 | |||||||||||||||||||||||||||||||||
| Equity in Earnings of Affiliates, Net | 16,394 | ||||||||||||||||||||||||||||||||||
| Interest Expense, Net | (110,530) | ||||||||||||||||||||||||||||||||||
| Non-Operating Pension and Postretirement Benefit Income, Net | 127,539 | ||||||||||||||||||||||||||||||||||
| Gain on Marketable Equity Securities, Net | 200,170 | ||||||||||||||||||||||||||||||||||
| Other Expense, Net | (18,853) | ||||||||||||||||||||||||||||||||||
| Income Before Income Taxes | $ | 449,667 | |||||||||||||||||||||||||||||||||
| Capital Expenditures | $ | 17,930 | $ | 4,426 | $ | 14,435 | $ | 10,621 | $ | 8,114 | $ | 55,526 | |||||||||||||||||||||||
| Reconciliation of Capital Expenditures | |||||||||||||||||||||||||||||||||||
Other Businesses and Corporate Office Capital Expenditures (8) | 24,229 | ||||||||||||||||||||||||||||||||||
| Total Capital Expenditures | $ | 79,755 | |||||||||||||||||||||||||||||||||
| (1) | Revenue from segments below the quantitative thresholds is attributable to Other Businesses and the Corporate Office, as described above. None of these operating segments meet the quantitative thresholds for determining reportable segments. | |||||||
| (2) | The significant expense categories and amounts align with the segment-level information that is regularly provided to the CODM. | |||||||
| (3) | Cost of revenue reflects the amounts reported and provided to the CODM and does not necessarily reconcile to the Company's Consolidated Statement of Operations or align across reportable segments. Cost of revenue excludes charges related to depreciation, which is shown separately. | |||||||
| (4) | Excludes pension service cost, which is shown separately above. Excludes any payroll and related benefits costs captured in cost of revenue. | |||||||
| (5) | Management and operating services provided by Christopher J. Ourisman and his team of industry professionals. | |||||||
| (6) | Other segment items for each reportable segment include: | |||||||
| (a) | Education (includes Kaplan International, Kaplan Higher Education and Kaplan Supplemental Education) - training and employment expense, travel meals and entertainment expense, operating fees and other general and administrative (G&A) expenses. | |||||||
| (b) | Television Broadcasting - other broadcast expenses, facilities expenses, third-party commission costs and other selling, general and administrative expenses (SG&A). | |||||||
| (c) | Manufacturing - payroll and fringe benefits expense (SG&A) and other SG&A expenses. | |||||||
| (d) | Healthcare (includes CSI) - indirect costs (e.g. payroll and benefits expenses, general and administrative expenses) and other SG&A expenses. | |||||||
| (e) | Automotive - advertising and marketing expense and other G&A expenses. | |||||||
| (7) | Profit or loss from operating segments below the quantitative thresholds attributable to Other Businesses as described above. These operating segments did not meet any of the quantitative thresholds for determining reportable segments. | |||||||
| (8) | Capital Expenditures from operating segments below the quantitative thresholds are attributable to Other Businesses and the Corporate Office, as described above. None of these operating segments meet the quantitative thresholds for determining reportable segments. | |||||||
The Company’s education division segment information is as follows:
| Year Ended December 31, 2025 | |||||||||||||||||||||||||||||||||||
| (in thousands) | Kaplan International | Higher Education | Supplemental Education | Kaplan Corporate and Other | Intersegment Elimination | Total Education | |||||||||||||||||||||||||||||
| Operating Revenues | $ | 1,079,570 | $ | 349,211 | $ | 317,159 | $ | 585 | $ | (2,193) | $ | 1,744,332 | |||||||||||||||||||||||
Less: Significant Expenses (1) | |||||||||||||||||||||||||||||||||||
Cost of Revenue (2) | 358,673 | 251,531 | 50,303 | — | (1,478) | 659,029 | |||||||||||||||||||||||||||||
Payroll and Fringe Benefits Expense (3) | 298,607 | 22,694 | 136,499 | 26,618 | (125) | 484,293 | |||||||||||||||||||||||||||||
| Occupancy Expense | 104,536 | 725 | 3,327 | 768 | (551) | 108,805 | |||||||||||||||||||||||||||||
| Advertising and Marketing Expense | 33,973 | 7,657 | 36,191 | 439 | 78,260 | ||||||||||||||||||||||||||||||
Other Segment Items (4) | 144,654 | 1,375 | 46,858 | 8,533 | (219) | 201,201 | |||||||||||||||||||||||||||||
EBITDAP | $ | 139,127 | $ | 65,229 | $ | 43,981 | $ | (35,773) | $ | 180 | $ | 212,744 | |||||||||||||||||||||||
| Pension Service Cost | 571 | 7,394 | 7,718 | 1,588 | 17,271 | ||||||||||||||||||||||||||||||
| Depreciation Expense | 25,154 | 1,425 | 2,871 | 27 | 29,477 | ||||||||||||||||||||||||||||||
| Income (Loss) from Operations before Amortization of Intangible Assets | $ | 113,402 | $ | 56,410 | $ | 33,392 | $ | (37,388) | $ | 180 | $ | 165,996 | |||||||||||||||||||||||
| Capital Expenditures | $ | 12,725 | $ | 1,012 | $ | 4,132 | $ | 61 | $ | 17,930 | |||||||||||||||||||||||||
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| (1) | The significant expense categories and amounts align with the segment-level information that is regularly provided to the CODM. | |||||||
| (2) | Cost of revenue reflects the amounts reported and provided to the CODM and does not necessarily reconcile to the Company's Consolidated Statement of Operations or align across reportable segments. Cost of revenue excludes charges related to depreciation, which is shown separately. | |||||||
| (3) | Excludes pension service cost, which is shown separately above. Excludes any payroll and related benefits costs captured in cost of revenue. | |||||||
| (4) | Other segment items for each reportable segment include: | |||||||
| (a) | Kaplan international - travel meals and entertainment expense, training and employment expense, operating fees and other G&A expenses. | |||||||
| (b) | Higher education - training and employment expense, operating fees and other G&A expenses. | |||||||
| (c) | Supplemental education - training and employment expense, operating fees and other G&A expenses. | |||||||
The Company’s healthcare division segment information is as follows:
| Year Ended December 31, 2025 | |||||||||||||||||
| (in thousands) | CSI | Other Healthcare | Total Healthcare | ||||||||||||||
| Operating Revenues | $ | 465,508 | $ | 349,541 | $ | 815,049 | |||||||||||
Less: Significant Expenses (1) | |||||||||||||||||
Cost of Revenue (2) | 348,151 | 155,704 | 503,855 | ||||||||||||||
Other Segment Items (3) | 63,144 | 133,339 | 196,483 | ||||||||||||||
EBITDAP | $ | 54,213 | $ | 60,498 | $ | 114,711 | |||||||||||
| Pension Service Cost | — | 9,984 | 9,984 | ||||||||||||||
| Depreciation Expense | 829 | 6,474 | 7,303 | ||||||||||||||
| Income from Operations before Amortization of Intangible Assets and Impairment of Long-Lived Assets | $ | 53,384 | $ | 44,040 | $ | 97,424 | |||||||||||
| Capital Expenditures | $ | 2,336 | $ | 12,099 | $ | 14,435 | |||||||||||
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| (1) | The significant expense categories and amounts align with the segment-level information that is regularly provided to the CODM. | |||||||
| (2) | Cost of revenue reflects the amounts reported and provided to the CODM and does not necessarily reconcile to the Company's Consolidated Statement of Operations. Cost of revenue excludes charges related to depreciation, which is shown separately. | |||||||
| (3) | Other segment items for CSI include indirect costs (e.g. payroll and benefits expenses, general and administrative expenses) and other SG&A expenses. | |||||||
The Company’s segment information is as follows:
| Year Ended December 31, 2024 | |||||||||||||||||||||||||||||||||||
| (in thousands) | Education | Television Broadcasting | Healthcare | Manufacturing | Automotive | Total Segments | |||||||||||||||||||||||||||||
| Operating Revenues | $ | 1,691,778 | $ | 535,678 | $ | 611,109 | $ | 395,642 | $ | 1,200,477 | $ | 4,434,684 | |||||||||||||||||||||||
| Reconciliation of Revenue | |||||||||||||||||||||||||||||||||||
Other Businesses and Corporate Office Revenues (1) | 358,822 | ||||||||||||||||||||||||||||||||||
| Intersegment Elimination | (2,602) | ||||||||||||||||||||||||||||||||||
| Total Consolidated Revenues | $ | 4,790,904 | |||||||||||||||||||||||||||||||||
Less: Significant Expenses (2) | |||||||||||||||||||||||||||||||||||
Cost of Revenue (3) | 655,482 | 343,695 | 293,215 | 1,021,271 | 2,313,663 | ||||||||||||||||||||||||||||||
Payroll and Fringe Benefits Expense (4) | 471,144 | 112,316 | 84,416 | 667,876 | |||||||||||||||||||||||||||||||
| Occupancy Expense | 116,839 | 7,573 | 124,412 | ||||||||||||||||||||||||||||||||
| Advertising and Marketing Expense | 70,828 | 70,828 | |||||||||||||||||||||||||||||||||
| Networking and Programming Expense | 126,474 | 126,474 | |||||||||||||||||||||||||||||||||
Management Services (5) | 8,054 | 8,054 | |||||||||||||||||||||||||||||||||
Other Segment Items (6) | 190,448 | 73,064 | 188,856 | 59,379 | 34,059 | 545,806 | |||||||||||||||||||||||||||||
| EBITDAP | $ | 187,037 | $ | 223,824 | $ | 78,558 | $ | 43,048 | $ | 45,104 | $ | 577,571 | |||||||||||||||||||||||
| Pension Service Cost | 17,733 | 6,055 | 19,303 | 2,877 | 116 | $ | 46,084 | ||||||||||||||||||||||||||||
| Depreciation Expense | 35,058 | 11,174 | 6,859 | 10,983 | 6,959 | $ | 71,033 | ||||||||||||||||||||||||||||
| Income from Operations before Amortization of Intangible Assets and Impairment of Goodwill and Other Long-Lived Assets | $ | 134,246 | $ | 206,595 | $ | 52,396 | $ | 29,188 | $ | 38,029 | $ | 460,454 | |||||||||||||||||||||||
Other Businesses (7) | (99,101) | ||||||||||||||||||||||||||||||||||
| Corporate Costs | (58,908) | ||||||||||||||||||||||||||||||||||
| Amortization of Intangible Assets | (37,119) | ||||||||||||||||||||||||||||||||||
| Impairment of Goodwill and Other Long-Lived Assets | (49,822) | ||||||||||||||||||||||||||||||||||
| Income from Operations | $ | 215,504 | |||||||||||||||||||||||||||||||||
| Equity in Losses of Affiliates, Net | (3,303) | ||||||||||||||||||||||||||||||||||
| Interest Expense, Net | (176,281) | ||||||||||||||||||||||||||||||||||
| Non-Operating Pension and Postretirement Benefit Income, Net | 794,949 | ||||||||||||||||||||||||||||||||||
| Gain on Marketable Equity Securities, Net | 181,295 | ||||||||||||||||||||||||||||||||||
| Other Income, Net | 12,546 | ||||||||||||||||||||||||||||||||||
| Income Before Income Taxes | $ | 1,024,710 | |||||||||||||||||||||||||||||||||
| Capital Expenditures | $ | 25,989 | $ | 5,887 | $ | 10,182 | $ | 15,951 | $ | 4,063 | $ | 62,072 | |||||||||||||||||||||||
| Reconciliation of Capital Expenditures | |||||||||||||||||||||||||||||||||||
Other Businesses and Corporate Office Capital Expenditures (8) | 31,027 | ||||||||||||||||||||||||||||||||||
| Total Capital Expenditures | $ | 93,099 | |||||||||||||||||||||||||||||||||
| (1) | Revenue from segments below the quantitative thresholds is attributable to Other Businesses and the Corporate Office, as described above. None of these operating segments meet the quantitative thresholds for determining reportable segments. | |||||||
| (2) | The significant expense categories and amounts align with the segment-level information that is regularly provided to the CODM. | |||||||
| (3) | Cost of revenue reflects the amounts reported and provided to the CODM and does not necessarily reconcile to the Company's Consolidated Statement of Operations or align across reportable segments. Cost of revenue excludes charges related to depreciation, which is shown separately. | |||||||
| (4) | Excludes pension service cost, which is shown separately above. Excludes any payroll and related benefits costs captured in cost of revenue. | |||||||
| (5) | Management and operating services provided by Christopher J. Ourisman and his team of industry professionals. | |||||||
| (6) | Other segment items for each reportable segment include: | |||||||
| (a) | Education (includes Kaplan International, Kaplan Higher Education and Kaplan Supplemental Education) - training and employment expense, travel meals and entertainment expense, operating fees and other general and administrative (G&A) expenses. | |||||||
| (b) | Television Broadcasting - other broadcast expenses, facilities expenses, third-party commission costs and other selling, general and administrative expenses (SG&A). | |||||||
| (c) | Manufacturing - payroll and fringe benefits expense (SG&A) and other SG&A expenses. | |||||||
| (d) | Healthcare (includes CSI) - indirect costs (e.g. payroll and benefits expenses, general and administrative expenses) and other SG&A expenses. | |||||||
| (e) | Automotive - advertising and marketing expense and other G&A expenses. | |||||||
| (7) | Profit or loss from operating segments below the quantitative thresholds attributable to Other Businesses as described above. These operating segments did not meet any of the quantitative thresholds for determining reportable segments. | |||||||
| (8) | Capital Expenditures from operating segments below the quantitative thresholds are attributable to Other Businesses and the Corporate Office, as described above. None of these operating segments meet the quantitative thresholds for determining reportable segments. | |||||||
The Company’s education division segment information is as follows:
| Year Ended December 31, 2024 | |||||||||||||||||||||||||||||||||||
| (in thousands) | Kaplan International | Higher Education | Supplemental Education | Kaplan Corporate and Other | Intersegment Elimination | Total Education | |||||||||||||||||||||||||||||
| Operating Revenues | $ | 1,074,207 | $ | 324,815 | $ | 291,630 | $ | 5,761 | $ | (4,635) | $ | 1,691,778 | |||||||||||||||||||||||
Less: Significant Expenses (1) | |||||||||||||||||||||||||||||||||||
Cost of Revenue (2) | 361,508 | 247,196 | 51,574 | — | (4,796) | 655,482 | |||||||||||||||||||||||||||||
Payroll and Fringe Benefits Expense (3) | 299,643 | 17,431 | 126,410 | 27,660 | — | 471,144 | |||||||||||||||||||||||||||||
| Occupancy Expense | 107,813 | 696 | 2,703 | 5,627 | — | 116,839 | |||||||||||||||||||||||||||||
| Advertising and Marketing Expense | 32,414 | 6,870 | 30,914 | 630 | — | 70,828 | |||||||||||||||||||||||||||||
Other Segment Items (4) | 141,743 | 1,427 | 41,760 | 5,368 | 150 | 190,448 | |||||||||||||||||||||||||||||
EBITDAP | $ | 131,086 | $ | 51,195 | $ | 38,269 | $ | (33,524) | $ | 11 | $ | 187,037 | |||||||||||||||||||||||
| Pension Service Cost | 704 | 7,620 | 7,848 | 1,561 | 17,733 | ||||||||||||||||||||||||||||||
| Depreciation Expense | 28,683 | 2,825 | 3,487 | 63 | 35,058 | ||||||||||||||||||||||||||||||
| Income (Loss) from Operations before Amortization of Intangible Assets and Impairment of Intangible Assets | $ | 101,699 | $ | 40,750 | $ | 26,934 | $ | (35,148) | $ | 11 | $ | 134,246 | |||||||||||||||||||||||
| Capital Expenditures | $ | 22,560 | $ | 1,016 | $ | 2,413 | $ | — | $ | 25,989 | |||||||||||||||||||||||||
____________
| (1) | The significant expense categories and amounts align with the segment-level information that is regularly provided to the CODM. | |||||||
| (2) | Cost of revenue reflects the amounts reported and provided to the CODM and does not necessarily reconcile to the Company's Consolidated Statement of Operations or align across reportable segments. Cost of revenue excludes charges related to depreciation, which is shown separately. | |||||||
| (3) | Excludes pension service cost, which is shown separately above. Excludes any payroll and related benefits costs captured in cost of revenue. | |||||||
| (4) | Other segment items for each reportable segment include: | |||||||
| (a) | Kaplan international - travel meals and entertainment expense, training and employment expense, operating fees and other G&A expenses. | |||||||
| (b) | Higher education - training and employment expense, operating fees and other G&A expenses. | |||||||
| (c) | Supplemental education - training and employment expense, operating fees and other G&A expenses. | |||||||
The Company’s healthcare division segment information is as follows:
| Year Ended December 31, 2024 | |||||||||||||||||
| (in thousands) | CSI | Other Healthcare | Total Healthcare | ||||||||||||||
| Operating Revenues | $ | 299,598 | $ | 311,511 | $ | 611,109 | |||||||||||
Less: Significant Expenses (1) | |||||||||||||||||
Cost of Revenue (2) | 205,754 | 137,941 | 343,695 | ||||||||||||||
Other Segment Items (3) | 54,035 | 134,821 | 188,856 | ||||||||||||||
EBITDAP | $ | 39,809 | $ | 38,749 | $ | 78,558 | |||||||||||
| Pension Service Cost | — | 19,303 | 19,303 | ||||||||||||||
| Depreciation Expense | 586 | 6,273 | 6,859 | ||||||||||||||
| Income from Operations before Amortization of Intangible Assets | $ | 39,223 | $ | 13,173 | $ | 52,396 | |||||||||||
| Capital Expenditures | $ | 1,126 | $ | 9,056 | $ | 10,182 | |||||||||||
___________
| (1) | The significant expense categories and amounts align with the segment-level information that is regularly provided to the CODM. | |||||||
| (2) | Cost of revenue reflects the amounts reported and provided to the CODM and does not necessarily reconcile to the Company's Consolidated Statement of Operations. Cost of revenue excludes charges related to depreciation, which is shown separately. | |||||||
| (3) | Other segment items for CSI include indirect costs (e.g. payroll and benefits expenses, general and administrative expenses) and other SG&A expenses. | |||||||
The Company’s segment information is as follows:
| Year Ended December 31, 2023 | |||||||||||||||||||||||||||||||||||
| (in thousands) | Education | Television Broadcasting | Healthcare | Manufacturing | Automotive | Total Segments | |||||||||||||||||||||||||||||
| Operating Revenues | $ | 1,587,581 | $ | 472,436 | $ | 459,481 | $ | 447,910 | $ | 1,079,893 | $ | 4,047,301 | |||||||||||||||||||||||
| Reconciliation of Revenue | |||||||||||||||||||||||||||||||||||
Other Businesses and Corporate Office Revenues (1) | 371,233 | ||||||||||||||||||||||||||||||||||
| Intersegment Elimination | (3,657) | ||||||||||||||||||||||||||||||||||
| Total Consolidated Revenues | $ | 4,414,877 | |||||||||||||||||||||||||||||||||
Less: Significant Expenses (2) | |||||||||||||||||||||||||||||||||||
Cost of Revenue (3) | 623,731 | 257,639 | 323,906 | 913,790 | 2,119,066 | ||||||||||||||||||||||||||||||
Payroll and Fringe Benefits Expense (4) | 432,730 | 119,311 | 75,018 | 627,059 | |||||||||||||||||||||||||||||||
| Occupancy Expense | 112,230 | 6,562 | 118,792 | ||||||||||||||||||||||||||||||||
| Advertising and Marketing Expense | 64,427 | 64,427 | |||||||||||||||||||||||||||||||||
| Networking and Programming Expense | 129,827 | 129,827 | |||||||||||||||||||||||||||||||||
Management Services (5) | 7,312 | 7,312 | |||||||||||||||||||||||||||||||||
Other Segment Items (6) | 188,345 | 68,355 | 154,764 | 66,426 | 32,728 | 510,618 | |||||||||||||||||||||||||||||
EBITDAP | $ | 166,118 | $ | 154,943 | $ | 47,078 | $ | 57,578 | $ | 44,483 | $ | 470,200 | |||||||||||||||||||||||
| Pension Service Cost | 8,907 | 3,331 | 14,083 | 1,115 | 35 | $ | 27,471 | ||||||||||||||||||||||||||||
| Depreciation Expense | 38,187 | 12,224 | 5,475 | 9,453 | 5,177 | $ | 70,516 | ||||||||||||||||||||||||||||
| Income from Operations before Amortization of Intangible Assets and Impairment of Goodwill and Other Long-Lived Assets | $ | 119,024 | $ | 139,388 | $ | 27,520 | $ | 47,010 | $ | 39,271 | $ | 372,213 | |||||||||||||||||||||||
Other Businesses (7) | (98,115) | ||||||||||||||||||||||||||||||||||
| Corporate Costs | (55,600) | ||||||||||||||||||||||||||||||||||
| Amortization of Intangible Assets | (50,039) | ||||||||||||||||||||||||||||||||||
| Impairment of Goodwill and Other Long-Lived Assets | (99,066) | ||||||||||||||||||||||||||||||||||
| Income from Operations | $ | 69,393 | |||||||||||||||||||||||||||||||||
| Equity in Losses of Affiliates, Net | (5,183) | ||||||||||||||||||||||||||||||||||
| Interest Expense, Net | (56,179) | ||||||||||||||||||||||||||||||||||
| Non-Operating Pension and Postretirement Benefit Income, Net | 133,812 | ||||||||||||||||||||||||||||||||||
| Gain on Marketable Equity Securities, Net | 138,067 | ||||||||||||||||||||||||||||||||||
| Other Income, Net | 19,094 | ||||||||||||||||||||||||||||||||||
| Income Before Income Taxes | $ | 299,004 | |||||||||||||||||||||||||||||||||
| Capital Expenditures | $ | 36,760 | $ | 9,220 | $ | 12,992 | $ | 23,089 | $ | 10,140 | $ | 92,201 | |||||||||||||||||||||||
| Reconciliation of Capital Expenditures | |||||||||||||||||||||||||||||||||||
Other Businesses and Corporate Office Capital Expenditures (8) | 15,085 | ||||||||||||||||||||||||||||||||||
| Total Capital Expenditures | $ | 107,286 | |||||||||||||||||||||||||||||||||
| (1) | Revenue from segments below the quantitative thresholds is attributable to Other Businesses, as described above. None of these operating segments meet the quantitative thresholds for determining reportable segments. | |||||||
| (2) | The significant expense categories and amounts align with the segment-level information that is regularly provided to the CODM. | |||||||
| (3) | Cost of revenue reflects the amounts reported and provided to the CODM and does not necessarily reconcile to the Company's Consolidated Statement of Operations or align across reportable segments. Cost of revenue excludes charges related to depreciation, which is shown separately. | |||||||
| (4) | Excludes pension service cost, which is shown separately above. Excludes any payroll and related benefits costs captured in cost of revenue. | |||||||
| (5) | Management and operating services provided by Christopher J. Ourisman and his team of industry professionals. | |||||||
| (6) | Other segment items for each reportable segment include: | |||||||
| (a) | Education (includes Kaplan International, Kaplan Higher Education and Kaplan Supplemental Education) - training and employment expense, travel meals and entertainment expense, operating fees and other general and administrative (G&A) expenses. | |||||||
| (b) | Television Broadcasting - other broadcast expenses, facilities expenses, third-party commission costs and other selling, general and administrative expenses (SG&A). | |||||||
| (c) | Manufacturing - payroll and fringe benefits expense (SG&A) and other SG&A expenses. | |||||||
| (d) | Healthcare (includes CSI) - indirect costs (e.g. payroll and benefits expenses, general and administrative expenses) and other SG&A expenses. | |||||||
| (e) | Automotive - advertising and marketing expense and other G&A expenses. | |||||||
| (7) | Profit or loss from operating segments below the quantitative thresholds attributable to Other Businesses as described above. These operating segments did not meet any of the quantitative thresholds for determining reportable segments. | |||||||
| (8) | Capital Expenditures from operating segments below the quantitative thresholds are attributable to Other Businesses and the Corporate Office, as described above. None of these operating segments meet the quantitative thresholds for determining reportable segments. | |||||||
The Company’s education division segment information is as follows:
| Year Ended December 31, 2023 | |||||||||||||||||||||||||||||||||||
| (in thousands) | Kaplan International | Higher Education | Supplemental Education | Kaplan Corporate and Other | Intersegment Elimination | Total Education | |||||||||||||||||||||||||||||
| Operating Revenues | $ | 966,879 | $ | 326,961 | $ | 292,776 | $ | 11,012 | $ | (10,047) | $ | 1,587,581 | |||||||||||||||||||||||
Less: Significant Expenses (1) | |||||||||||||||||||||||||||||||||||
Cost of Revenue (2) | 320,183 | 254,378 | 55,162 | — | (5,992) | 623,731 | |||||||||||||||||||||||||||||
Payroll and Fringe Benefits Expense (3) | 267,878 | 17,334 | 127,396 | 22,823 | (2,701) | 432,730 | |||||||||||||||||||||||||||||
| Occupancy Expense | 96,636 | 1,044 | 3,827 | 11,035 | (312) | 112,230 | |||||||||||||||||||||||||||||
| Advertising and Marketing Expense | 30,654 | 5,123 | 28,226 | 424 | — | 64,427 | |||||||||||||||||||||||||||||
Other Segment Items (4) | 135,172 | 1,987 | 46,381 | 5,818 | (1,013) | 188,345 | |||||||||||||||||||||||||||||
EBITDAP | $ | 116,356 | $ | 47,095 | $ | 31,784 | $ | (29,088) | $ | (29) | $ | 166,118 | |||||||||||||||||||||||
| Pension Service Cost | 325 | 3,737 | 4,147 | 698 | 8,907 | ||||||||||||||||||||||||||||||
| Depreciation Expense | 28,501 | 4,416 | 5,165 | 105 | 38,187 | ||||||||||||||||||||||||||||||
| Income (Loss) from Operations before Amortization of Intangible Assets and Impairment of Long-Lived Assets | $ | 87,530 | $ | 38,942 | $ | 22,472 | $ | (29,891) | $ | (29) | $ | 119,024 | |||||||||||||||||||||||
| Capital Expenditures | $ | 31,111 | $ | 2,394 | $ | 3,209 | $ | 46 | $ | 36,760 | |||||||||||||||||||||||||
| (1) | The significant expense categories and amounts align with the segment-level information that is regularly provided to the CODM. | |||||||
| (2) | Cost of revenue reflects the amounts reported and provided to the CODM and does not necessarily reconcile to the Company's Consolidated Statement of Operations or align across reportable segments. Cost of revenue excludes charges related to depreciation, which is shown separately. | |||||||
| (3) | Excludes pension service cost, which is shown separately above. Excludes any payroll and related benefits costs captured in cost of revenue. | |||||||
| (4) | Other segment items for each reportable segment include: | |||||||
| (a) | Kaplan international - travel meals and entertainment expense, training and employment expense, operating fees and other G&A expenses. | |||||||
| (b) | Higher education - training and employment expense, operating fees and other G&A expenses. | |||||||
| (c) | Supplemental education - training and employment expense, operating fees and other G&A expenses. | |||||||
The Company’s healthcare division segment information is as follows:
| Year Ended December 31, 2023 | |||||||||||||||||
| (in thousands) | CSI | Other Healthcare | Total Healthcare | ||||||||||||||
| Operating Revenues | $ | 189,202 | $ | 270,279 | $ | 459,481 | |||||||||||
Less: Significant Expenses (1) | |||||||||||||||||
Cost of Revenue (2) | 137,363 | 120,276 | 257,639 | ||||||||||||||
Other Segment Items (3) | 33,200 | 121,564 | 154,764 | ||||||||||||||
EBITDAP | $ | 18,639 | $ | 28,439 | $ | 47,078 | |||||||||||
| Pension Service Cost | — | 14,083 | 14,083 | ||||||||||||||
| Depreciation Expense | 429 | 5,046 | 5,475 | ||||||||||||||
| Income from Operations before Amortization of Intangible Assets and Impairment of Long-Lived Assets | $ | 18,210 | $ | 9,310 | $ | 27,520 | |||||||||||
| Capital Expenditures | $ | 1,129 | $ | 11,863 | $ | 12,992 | |||||||||||
___________
| (1) | The significant expense categories and amounts align with the segment-level information that is regularly provided to the CODM. | |||||||
| (2) | Cost of revenue reflects the amounts reported and provided to the CODM and does not necessarily reconcile to the Company's Consolidated Statement of Operations. Cost of revenue excludes charges related to depreciation, which is shown separately. | |||||||
| (3) | Other segment items for CSI include indirect costs (e.g. payroll and benefits expenses, general and administrative expenses) and other SG&A expenses. | |||||||
Asset information for the Company’s business segments is as follows:
| As of December 31 | |||||||||||
| (in thousands) | 2025 | 2024 | |||||||||
| Identifiable Assets | |||||||||||
| Kaplan international | $ | 1,551,682 | $ | 1,500,846 | |||||||
| Higher education | 174,738 | 182,442 | |||||||||
| Supplemental education | 247,181 | 238,836 | |||||||||
| Kaplan corporate and other | 34,973 | 41,754 | |||||||||
| Education | 2,008,574 | 1,963,878 | |||||||||
| Television broadcasting | 393,097 | 402,200 | |||||||||
| CSI | 128,170 | 91,437 | |||||||||
| Other Healthcare | 227,457 | 217,154 | |||||||||
| Healthcare | 355,627 | 308,591 | |||||||||
| Manufacturing | 535,006 | 411,137 | |||||||||
| Automotive | 582,715 | 582,105 | |||||||||
| Total Segments | 3,875,019 | 3,667,911 | |||||||||
| Other businesses | 357,408 | 338,089 | |||||||||
| Corporate office | 79,389 | 139,126 | |||||||||
| Investments in Marketable Equity Securities | 1,081,938 | 852,434 | |||||||||
| Investments in Affiliates | 229,565 | 169,125 | |||||||||
| Prepaid Pension Cost | 2,772,394 | 2,510,520 | |||||||||
| Total Assets | $ | 8,395,713 | $ | 7,677,205 | |||||||
About Segments Disclosures
Segment disclosures break a company into its reportable operating units, revealing revenue, profit, and asset allocation that consolidated financial statements obscure. Under ASC 280, segments must match how the chief operating decision maker views the business, providing a window into internal management structure and resource allocation priorities.
Key signals: compare segment margins to identify which units drive profitability and which destroy value. Watch for changes in the number of reportable segments — segment aggregation or disaggregation often coincides with strategic shifts or attempts to obscure declining performance. Intersegment elimination patterns reveal internal pricing practices. The reconciliation between segment totals and consolidated figures exposes corporate overhead allocation and unallocated items. Geographic revenue concentration highlights regulatory and currency exposure. Compare segment-level capital expenditure against segment revenue to assess where management is investing for future growth versus harvesting existing assets.