Company: GHC
Filing Date: 2025-10-29
Form Type: 10-Q
Source: 0001628280-25-046925
Chunk: 101

Company: Graham Holdings Co
Filing Date: 2025-10-29
Form: 10-Q
Item: Part I, Item 8
Chunk 101
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 Company recorded interest expense of $0.7 million and $68.3 million, respectively, to adjust the fair value of the mandatorily redeemable noncontrolling interest. During the three and nine months ended September 30, 2024, the Company recorded interest expense of $9.7 million and $85.1 million, respectively, to adjust the fair value of the mandatorily redeemable noncontrolling interest. The fair value of the mandatorily redeemable noncontrolling interest was based on the fair value of the underlying subsidiaries owned by GHC One and GHC Two, after taking into account any debt and other noncontrolling interests of its subsidiary investments. The fair value of the owned subsidiaries is determined by reference to either a discounted cash flow or EBITDA multiple, which approximates fair value (Level 3 fair value assessment) (See Note 2 and 8).On September 26, 2023, the Company’s automotive subsidiary entered into a credit agreement with Truist Bank, which included a $50.0 million delayed draw term loan. On September 24, 2025, the Company executed an amendment to extend the delayed draw term loan availability period to November 10, 2025. The automotive subsidiary did not borrow against the delayed draw term loan as of September 30, 2025; the delayed draw term loan was subsequently utilized to finance the acquisition of a Honda automotive dealership in October 2025 (see Note 2).

14

8.    FAIR VALUE MEASUREMENTS 

The Company’s financial assets and liabilities measured at fair value on a recurring basis were as follows:As of September 30, 2025(in thousands)Level 1Level 2Level 3TotalAssets      Money market investments (1) $— $5,592 $— $5,592 Marketable equity securities (2)998,793 — — 998,793 Other current investments (3)— 6,999 — 6,999 Total Financial Assets$998,793 $12,591 $— $1,011,384 Liabilities      Contingent consideration liabilities (4)$— $— $1,451 $1,451 Interest rate swaps (5) — 2,413 — 2,413 Mandatorily redeemable noncontrolling interest (6)— — 22,187 22,187