This analysis should be read in conjunction with the condensed consolidated financial statements and the notes thereto.
Items included in the Company's net loss for the second quarter of 2022:
•a $3.2 million net credit related to a fair value change in contingent consideration from a prior acquisition at Corporate (after-tax impact of $3.2 million, or $0.66 per share);
•$165.5 million in net losses on marketable equity securities (after-tax impact of $122.4 million, or $25.05 per share);
•$0.4 million in net losses of affiliates whose operations are not managed by the Company (after-tax impact of $0.3 million, or $0.07 per share); and
Items included in the Company's net income for the second quarter of 2021:
•a $2.6 million net credit related to a fair value change in contingent consideration from a prior acquisition at Corporate ($0.52 per share);
•$3.4 million in long-lived asset impairment charges (after-tax impact of $2.6 million, or $0.51 per share);
•$1.1 million in expenses related to a non-operating Separation Incentive Program (SIP) at manufacturing (after-tax impact of $0.8 million, or $0.16 per share);
•$83.7 million in net gains on marketable equity securities (after-tax impact of $60.9 million, or $12.18 per share);
•$1.4 million in net losses of affiliates whose operations are not managed by the Company (after-tax impact of $1.0 million, or $0.21 per share);
•a net non-operating gain of $14.5 million from the sale and write-up of cost method investments (after-tax impact of $10.7 million, or $2.13 per share); and
•$1.0 million in interest income to adjust the fair value of the mandatorily redeemable noncontrolling interest ($0.19 per share).
Items included in the Company's net income for the first six months of 2022:
•a $3.2 million net credit related to a fair value change in contingent consideration from a prior acquisition at Corporate (after-tax impact of $3.1 million, or $0.64 per share);
•$118.6 million in net losses on marketable equity securities (after-tax impact of $87.7 million, or $17.90 per share);
•$0.1 million in net losses of affiliates whose operations are not managed by the Company (after-tax impact of $0.1 million, or $0.01 per share);
•Non-operating gain of $1.7 million from sales of an equity method and cost method investment (after-tax impact of $1.3 million, or $0.26 per share); and
Items included in the Company's net income for the first six months of 2021:
•a $2.2 million net credit related to a fair value change in contingent consideration from a prior acquisition at Corporate ($0.44 per share);
•$3.4 million in long-lived asset impairment charges (after-tax impact of $2.6 million, or $0.51 per share);
•$1.1 million in expenses related to a non-operating SIP at manufacturing (after-tax impact of $0.8 million, or $0.16 per share);
•$162.9 million in net gains on marketable equity securities (after-tax impact of $118.5 million, or $23.64 per share);
•$8.9 million in net earnings of affiliates whose operations are not managed by the Company (after-tax impact of $6.5 million, or $1.29 per share);
•a net non-operating gain of $17.2 million from the sale and write-up of cost method investments (after-tax impact of $12.7 million, or $2.54 per share); and
•$0.1 million in net interest expense to adjust the fair value of the mandatorily redeemable noncontrolling interest ($0.02 per share).
In addition, Kaplan recorded $2.2 million and $3.2 million in impairment of long-lived asset charges in the second quarter and first six months of 2021, respectively.
A summary of Kaplan's operating results is as follows:
Kaplan corporate and other represents unallocated expenses of Kaplan, Inc.'s corporate office, other minor businesses and certain shared activities.
A summary of television broadcasting's operating results is as follows:
A summary of manufacturing's operating results is as follows:
Manufacturing includes four businesses: Hoover, a supplier of pressure impregnated kiln-dried lumber and plywood products for fire retardant and preservative applications; Dekko, a manufacturer of electrical workspace solutions, architectural lighting and electrical components and assemblies; Joyce/Dayton, a 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.
A summary of healthcare's operating results is as follows:
A summary of automotive's operating results is as follows:
On July 5, 2022, the Company acquired a Toyota dealership and a Chrysler-Dodge-Jeep-Ram dealership in Woodbridge, VA from the Lustine Automotive Group.
Equity in Earnings (Losses) of Affiliates
the Company; this includes losses from the Company's investment in Intersection in the second quarter of 2022 and 2021.
Net Interest Expense and Related Balances
Non-operating Pension and Postretirement Benefit Income, net
In the second quarter of 2021, the Company recorded $1.1 million in expenses related to a non-operating SIP at manufacturing.
(Loss) Gain on Marketable Equity Securities, net
The Company's effective tax rate for the first six months of 2022 and 2021 was 32.2% and 27.0%, respectively.
500,000 shares of its Class B common stock; the Company has remaining authorization for 212,473 shares as of June 30, 2022.
Financial Condition: Capital Resources and Liquidity
Investments in marketable equity securities and other investments
On May 3, 2022, the Company amended the revolving credit facility agreement to, among other things, extend the maturity date to May 30, 2027.
On April 12, 2022, Standard & Poor's affirmed the Company's credit rating and maintained the outlook as Stable.
The Company's current credit ratings are as follows:
In summary, the Company's cash flows for each period were as follows:
Net decrease in cash and cash equivalents and restricted cash $ (12,980) $ (297,522)
Operating Activities. Cash provided by operating activities is net income adjusted for certain non-cash items and changes in assets and liabilities. The Company's net cash flow provided by operating activities were as follows:
Net proceeds from sales of (purchases of) marketable equity securities $ 42,765 $ (10,407) Purchases of property, plant and equipment
Investments in equity affiliates, cost method and other investments (27,950)
Net proceeds from sale of (purchases of) marketable equity securities. During the first six months of 2022 and 2021, the Company sold marketable equity securities that generated proceeds of $74.2 million and $37.6 million, respectively. The Company purchased $31.5 million and $48.0 million of marketable equity securities during the first six months of 2022 and 2021, respectively.
Investment in equity affiliates. During the first six months of 2022, GHG invested an additional $18.5 million in two affiliates to fund their acquisition of an interest in a health system in Illinois.
million in liabilities related to their pre-acquisition stock compensation plan, which will be paid in the future. Leaf is included in other businesses.
Net proceeds from (repayments of) vehicle floor plan payable 14,121
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