Company: GHC
Filing Date: 2025-04-30
Form Type: 10-Q
Source: 0000104889-25-000032
Chunk: 54

Company: Graham Holdings Co
Filing Date: 2025-04-30
Form: 10-Q
Item: Part I, Item 8
Chunk 54
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 market approach based on the quoted market prices of the security or inputs that include quoted market prices for similar instruments.(4)Included in Accounts payable, vehicle floor plan payable and accrued liabilities and Other Liabilities. The Company determined the fair value of the contingent consideration liabilities using either a Monte Carlo simulation, Black-Scholes model, or probability-weighted analysis depending on the type of target included in the contingent consideration requirements (revenue, EBITDA, client retention). All analyses included estimated financial projections for the acquired businesses and acquisition-specific discount rates.(5)Included in Other Liabilities. The Company utilized a market approach model using the notional amount of the interest rate swaps multiplied by the observable inputs of 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