Company: GHC
Filing Date: 2025-02-26
Form Type: 10-K
Source: 0000104889-25-000022
Chunk: 75

Company: Graham Holdings Co
Filing Date: 2025-02-26
Form: 10-K
Item: Item 16
Chunk 75
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 and 2022 were $1.2 million and $1.7 million, respectively, and were expensed as incurred. The aggregate purchase price of these acquisitions was allocated as follows, based on acquisition date fair values to the following assets and liabilities:Purchase Price AllocationYear Ended December 31(in thousands)20232022Accounts receivable$68 $3,172 Inventory5,224 21,278 Property, plant and equipment29,859 36,255 Lease right-of-use assets— 4,773 Goodwill45,968 53,946 Indefinite-lived intangible assets6,300 41,800 Amortized intangible assets235 1,200 Other assets4 404 Deferred income taxes— 2,535 Floor plan payables(2,215)(10,908)Other liabilities(935)(3,798)Current and noncurrent lease liabilities(1,184)(5,865)Redeemable noncontrolling interest— (2,164)Noncontrolling interest— (512)Aggregate purchase price, net of cash acquired$83,324 $142,116 Goodwill is calculated as the excess of the consideration transferred over the net assets recognized and represents the estimated future economic benefits arising from other assets acquired that could not be individually identified and separately recognized. The goodwill recorded due to these acquisitions is attributable to the assembled workforces of the acquired companies and expected synergies. The Company expects to deduct $45.0 million and $39.7 million of goodwill for income tax purposes for the acquisitions completed in 2023 and 2022, respectively.The acquired companies were consolidated into the Company’s financial statements starting on their respective acquisition dates. The following unaudited pro forma financial information includes the 2023 acquisitions as if they occurred at the beginning of 2022 and the 2022 acquisitions as if they had occurred at the beginning of 2021:Year Ended December 31(in thousands)20232022Operating revenues$4,529,817 $4,252,847 Net income218,205 87,571 These pro forma results were based on estimates and assumptions, which the Company believes are reasonable, and include the historical results of operations of the acquired companies and adjustments for depreciation and amortization of identified assets and the effect of pre-acquisition transaction-related expenses incurred by the 

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Company and the acquired entities. The pro forma information does not include efficiencies, cost reductions and synerg