Company: GHC
Filing Date: 2025-04-30
Form Type: 10-Q
Source: 0000104889-25-000032
Chunk: 20

Company: Graham Holdings Co
Filing Date: 2025-04-30
Form: 10-Q
Item: Part I, Item 1
Chunk 20
---
.9 million related to the remaining performance obligation in the contract over the next four years. As of December 31, 2024, the contract asset was $36.6 million, of which $1.9 million was included in Other current assets and $34.7 million was included in Deferred Charges and Other Assets. Additional contract assets of $2.7 million and $3.1 million are included in Other current assets on the Company’s Condensed Consolidated Balance Sheets as of March 31, 2025 and December 31, 2024, respectively.

13

Deferred Revenue.  The Company records deferred revenue when cash payments are received or due in advance of the Company’s performance which includes some payments that are refundable due to the contractual right of the customer to cancel the agreement. As of March 31, 2025 and December 31, 2024, 17% and 19%, respectively, of the Company’s deferred revenue consisted of prepaid amounts which are refundable. The following table presents the change in the Company’s deferred revenue balance: As ofMarch 31,2025December 31,2024%(in thousands)ChangeDeferred revenue$408,272 $397,435 3The majority of the change in the deferred revenue balance is related to increases within the Supplemental Education division, offset by changes due to the cyclical nature of services in the Kaplan international division. During the three months ended March 31, 2025, the Company recognized $206.0 million related to the Company’s deferred revenue balance as of December 31, 2024, including $27.5 million of prepaid amounts which were refundable at the prior year-end.Revenue allocated to remaining performance obligations represents deferred revenue amounts that will be recognized as revenue in future periods. As of March 31, 2025, the deferred revenue balance related to certain medical and nursing qualifications with an original contract length greater than twelve months at Kaplan Supplemental Education was $6.0 million. Kaplan Supplemental Education expects to recognize 67% of this revenue over the next twelve months and the remainder thereafter. Costs to Obtain a Contract.  The following table presents changes in the Company’s costs to obtain a contract asset: (in thousands)Balance at Beginning of PeriodCosts associated with new contractsLess: Costs amortized during the periodOtherBalance at End of Period2025$42,121 $26,152 $(25,700)$1,067 $43,640 The majority