Company: GHC
Filing Date: 2025-02-26
Form Type: 10-K
Source: 0000104889-25-000022
Chunk: 37

Company: Graham Holdings Co
Filing Date: 2025-02-26
Form: 10-K
Item: Item 16
Chunk 37
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 21 reporting units as of December 31, 2024. The reporting units with significant goodwill balances as of December 31, 2024, were as follows, representing 95% of the total goodwill of the Company:

(in millions)GoodwillEducation Kaplan international$580.5 Higher education63.2 Supplemental education171.4 Television broadcasting190.8 Healthcare135.0 Automotive129.3 Hoover91.3 Framebridge60.9 Total$1,422.4 

As of November 30, 2024, in connection with the Company’s annual impairment testing, the Company decided to perform the quantitative goodwill impairment process at all of the reporting units. The Company’s policy requires the performance of a quantitative impairment review of the goodwill at least once every three years. The Company used a discounted cash flow model, and, where appropriate, a market value approach was also utilized to supplement the discounted cash flow model to determine the estimated fair value of its reporting units. The Company made estimates and assumptions regarding future cash flows, discount rates, long-term growth rates and market values to determine each reporting unit’s estimated fair value. The methodology used to estimate the fair value of the Company’s reporting units on November 30, 2024, was consistent with the one used during the 2023 annual goodwill impairment test.

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The Company made changes to certain of its assumptions utilized in the discounted cash flow models for 2024 compared with the prior year to take into account changes in the economic environment, regulations and their impact on the Company’s businesses. The key assumptions used by the Company were as follows:

•Expected cash flows underlying the Company’s business plans for the periods 2025 through 2029 were used. The Company used expected cash flows for the periods 2025 through 2031 and 2025 through 2034 for the Framebridge and Hoover reporting units, respectively. The expected cash flows took into account historical growth rates, the effect of the changed economic outlook at the Company’s businesses, industry challenges and an estimate for the possible impact of any applicable regulations.

•Cash flows beyond the forecasted years, where applicable, were projected to grow at a long-term growth rate, which the Company estimated between 1.5% and 3% for each reporting unit.

•The Company used a discount rate of 8.5% to 20.5% to risk adjust the cash flow projections in determining the