Company: GHC
Filing Date: 2025-02-26
Form Type: 10-K
Source: 0000104889-25-000022
Chunk: 39

Company: Graham Holdings Co
Filing Date: 2025-02-26
Form: 10-K
Item: Item 16
Chunk 39
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 and the recent U.K. government elimination of the Value Added Tax (VAT) exemption on private school tuition coupled with an overall downward trend in enrollments at sixth-form colleges leading to uncertainty regarding future enrollments, the Company recorded an indefinite-lived intangible asset impairment charge of $22.9 million at MPW. The Company estimated the fair value of the trade name by utilizing the relief from royalty method under a discounted cash flow model. The carrying value of the MPW trademark indefinite-lived intangible asset exceeded its estimated fair value, resulting in an indefinite-lived intangible asset impairment charge for the excess amount. MPW is included in Kaplan International.

With the exception of the MPW trademark indefinite-lived intangible asset, the fair value of all the indefinite-lived intangible assets exceeded their respective carrying values as of November 30, 2024. The estimated fair values of indefinite-lived intangible assets with a total carrying value of $17.0 million exceeded their carrying value by a margin of less than 10%. There exists a reasonable possibility that impairment charges could occur in the future, as changes in market conditions and the inherent variability in projecting future operating performance could result in adverse changes in projections for future operating results or other key assumptions, such as projected revenue, profit margin, capital expenditures or cash flows associated with fair value estimates and could lead to future impairments, which could be material.

Pension Costs.  The Company sponsors a defined benefit pension plan for eligible employees in the U.S. Excluding curtailment gains, settlement gains and special termination benefits, the Company’s net pension credit 

67

was $107.7 million, $111.3 million and $170.2 million for 2024, 2023 and 2022, respectively. The Company’s pension benefit obligation and related credits are actuarially determined and are significantly impacted by the Company’s assumptions related to future events, including the discount rate, expected return on plan assets and rate of compensation increases. The Company evaluates these critical assumptions at least annually and, periodically, evaluates other assumptions involving demographic factors, such as retirement age, mortality and turnover, and updates them to reflect its experience and expectations for the future. Actual results in any given year will often differ from actuarial assumptions because of economic and other factors.

The Company assumed a 6.25% expected return on plan assets for 2024, 2023 and 2022. The Company’s actual return (loss) on plan assets was 19.1% in 2024,