Company: GHC
Filing Date: 2025-04-30
Form Type: 10-Q
Source: 0000104889-25-000032
Chunk: 18

Company: Graham Holdings Co
Filing Date: 2025-04-30
Form: 10-Q
Item: Part I, Item 1
Chunk 18
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 time to maturity and market interest rates.(6)The fair value of the mandatorily redeemable noncontrolling interest is 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 using enterprise value analyses which include an equal weighing between guideline public company and discounted cash flow analyses.(7)Included in Other current assets and valued based on a valuation model that calculates the differential between the contract price and the market-based forward rate.

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The following tables provide a reconciliation of changes in the Company’s financial liabilities measured at fair value on a recurring basis, using Level 3 inputs:(in thousands)Contingent consideration liabilitiesMandatorily redeemable noncontrolling interestAs of December 31, 2024$1,419 $159,548 Changes in fair value (1)— 66,407 Capital contributions— 80 Accretion of value included in net income (1)46 — Settlements or distributions— (205,315)Foreign currency exchange rate changes20 — As of March 31, 2025$1,485 $20,720 (in thousands)Contingent consideration liabilitiesMandatorily redeemable noncontrolling interestAs of December 31, 2023$788 $40,764 Changes in fair value (1)— 1,876 Accretion of value included in net income (1)6 — Settlements or distributions(719)(91)As of March 31, 2024$75 $42,549 ____________(1)Changes in fair value and accretion of value of contingent consideration liabilities are included in Selling, general and administrative expenses and the changes in fair value of mandatorily redeemable noncontrolling interest is included in Interest expense in the Company’s Condensed Consolidated Statements of Operations. Mandatorily Redeemable Noncontrolling Interest.  The mandatorily redeemable noncontrolling interest represents the ownership portion of a group of minority shareholders, consisting of a group of senior managers of the healthcare business, in subsidiaries of GHG. The Company established GHC One and GHC Two as vehicles to invest in a portfolio of healthcare businesses together with the group of senior managers of GHG. As the holder of preferred units, the Company is obligated to contribute 95% of the capital required for the acquisition of