Company: GHC
Filing Date: 2025-02-26
Form Type: 10-K
Source: 0000104889-25-000022
Chunk: 36

Company: Graham Holdings Co
Filing Date: 2025-02-26
Form: 10-K
Item: Item 16
Chunk 36
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 delinquent when a student or customer misses a scheduled payment. The Company writes off accounts receivable balances deemed uncollectible against the allowance for credit losses following the passage of a certain period of time, or generally when the account is turned over for collection to an outside collection agency.

65

Goodwill and Other Intangible Assets.  The Company has a significant amount of goodwill and indefinite-lived intangible assets that are reviewed at least annually for possible impairment.

As of December 31(in millions)20242023Goodwill and indefinite-lived intangible assets$1,664.4 $1,713.1 Total assets7,677.2 7,187.7 Percentage of goodwill and indefinite-lived intangible assets to total assets22 %24 %

The Company performs its annual goodwill and intangible assets impairment test as of November 30. Goodwill and other intangible assets are reviewed for possible impairment between annual tests if an event occurred or circumstances changed that would more likely than not reduce the fair value of the reporting unit or other intangible assets below its carrying value.

Goodwill

The Company tests its goodwill at the reporting unit level, which is an operating segment or one level below an operating segment. The Company initially performs an assessment of qualitative factors to determine if it is necessary to perform a quantitative goodwill impairment test. The Company quantitatively tests goodwill for impairment if, based on its assessment of the qualitative factors, it determines that it is more likely than not that the fair value of a reporting unit is less than its carrying amount, or if it decides to bypass the qualitative assessment. The quantitative goodwill impairment test compares the estimated fair value of a reporting unit with its carrying amount, including goodwill. An impairment charge is recognized for the amount by which the carrying amount exceeds the reporting unit’s fair value.

The Company performed an interim impairment review of goodwill at the WGB reporting unit in the second quarter of 2024 due to substantial digital advertising revenue declines and continued significant operating losses. The Company recorded a $7.5 million goodwill impairment charge at the WGB reporting unit as a result of the interim impairment review. The Company estimated the fair value of the reporting unit by utilizing a discounted cash flow model. The carrying value of the reporting unit exceeded its indicated fair value by more than the goodwill balance, which resulted in a goodwill impairment charge for the remaining goodwill at the reporting unit. As a result of the impairment charge, no goodwill remains at the WGB reporting unit, which is included in other businesses.

The Company had