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Investor Relations

SEC Filings

10-Q
GRAHAM HOLDINGS CO filed this Form 10-Q on 08/02/2017
Entire Document
 


The following reflects the Company’s net income and share data used in the basic and diluted earnings per share computations using the two-class method:
 
Three Months Ended 
 June 30
 
Six Months Ended 
 June 30
(in thousands, except per share amounts)
2017
 
2016
 
2017
 
2016
Numerator:
 
 
 
 
 
 
 
Numerator for basic earnings per share:
  
 
  
 
  
 
  
Net income attributable to Graham Holdings Company common stockholders
$
41,996

 
$
60,766

 
$
63,082

 
$
98,546

Less: Dividends paid-common stock outstanding and unvested restricted shares
(7,080
)
 
(6,775
)
 
(21,282
)
 
(20,533
)
Undistributed earnings
34,916

 
53,991

 
41,800

 
78,013

Percent allocated to common stockholders
99.06
%
 
98.68
%
 
99.06
%
 
98.68
%
 
34,588

 
53,277

 
41,407

 
76,981

Add: Dividends paid-common stock outstanding
7,013

 
6,685

 
21,082

 
20,264

Numerator for basic earnings per share
$
41,601

 
$
59,962

 
$
62,489

 
$
97,245

Add: Additional undistributed earnings due to dilutive stock options
3

 
4

 
3

 
5

Numerator for diluted earnings per share
$
41,604

 
$
59,966

 
$
62,492

 
$
97,250

Denominator:
  

 
  

 
 
 
 
Denominator for basic earnings per share:


 


 


 


Weighted average shares outstanding
5,539

 
5,544

 
5,537

 
5,584

Add: Effect of dilutive stock options
38

 
30

 
36

 
29

Denominator for diluted earnings per share
5,577

 
5,574

 
5,573

 
5,613

Graham Holdings Company Common Stockholders:
  
 
  
 
  
 
  
Basic earnings per share
$
7.51

 
$
10.82

 
$
11.29

 
$
17.42

Diluted earnings per share
$
7.46

 
$
10.76

 
$
11.21

 
$
17.33

Diluted earnings per share excludes the following weighted average potential common shares, as the effect would be antidilutive, as computed under the treasury stock method:
 
Three Months Ended 
 June 30
 
Six Months Ended 
 June 30
(in thousands)
2017
 
2016
 
2017
 
2016
Weighted average restricted stock
29

 
41

 
28

 
39

The diluted earnings per share amounts for the three and six months ended June 30, 2017 and June 30, 2016 exclude the effects of 104,000 and 102,000 stock options outstanding, as their inclusion would have been antidilutive due to a market condition. The diluted earnings per share amounts for the three and six months ended June 30, 2017 and June 30, 2016 exclude the effects of 5,250 and 6,100 restricted stock awards, respectively, as their inclusion would have been antidilutive due to a performance condition.
In the three and six months ended June 30, 2017, the Company declared regular dividends totaling $1.27 and $3.81, respectively. In the three and six months ended June 30, 2016, the Company declared regular dividends totaling $1.21, and $3.63 respectively.
8. PENSION AND POSTRETIREMENT PLANS
Defined Benefit Plans. The total benefit arising from the Company’s defined benefit pension plans consists of the following components:
  
Three Months Ended June 30
 
Six Months Ended June 30
(in thousands)
2017
 
2016
 
2017
 
2016
Service cost
$
4,591

 
$
5,040

 
$
9,505

 
$
10,382

Interest cost
11,979

 
12,845

 
23,965

 
25,918

Expected return on assets
(30,403
)
 
(30,226
)
 
(60,740
)
 
(60,774
)
Amortization of prior service cost
43

 
75

 
86

 
149

Recognized actuarial gain
(1,039
)
 

 
(2,333
)
 

Net Periodic Benefit
$
(14,829
)
 
$
(12,266
)
 
$
(29,517
)
 
$
(24,325
)

14