Graham Holdings CoGHC
Graham Holdings Co Goodwill & Intangibles Disclosure
GOODWILL AND OTHER INTANGIBLE ASSETS
The Company changed the presentation of its segments in the fourth quarter of 2025 into the following seven reportable segments: Kaplan International, Kaplan Higher Education, Kaplan Supplemental Education, Television Broadcasting, CSI, Manufacturing and Automotive (see Note 19). The composition of the reporting units within the healthcare division changed with the breakout of CSI and resulted in the reassignment of the assets and liabilities. The goodwill was allocated to the reporting units within the healthcare division using the relative fair value approach.
In the fourth quarter of 2025, as a result of underperformance at the Chrysler-Dodge-Jeep-Ram (CDJR) automotive dealership from a continued decline in revenues, the Company recorded an indefinite-lived intangible asset impairment charge of $10.1 million. The Company estimated the fair value of the indefinite-lived intangible asset by utilizing a discounted cash flow model. The carrying value of the indefinite-lived intangible asset exceeded its estimated fair value, resulting in an intangible asset impairment charge for the amount by which the carrying value exceeded its estimated fair value. The CDJR automotive dealership is included in the automotive segment.
In the fourth quarter of 2024, as a result of reduced enrollments at Mander Portman Woodward (MPW), due partly to the recent U.K. government elimination of the Value Added Tax (VAT) exemption on private school tuition, the Company recorded an intangible asset impairment charge of $22.9 million. The Company estimated the fair value of this indefinite-lived intangible asset by utilizing a discounted cash flow model. The carrying value of the indefinite-lived intangible asset exceeded its estimated fair value, resulting in an intangible asset impairment charge for the amount by which the carrying value exceeded its estimated fair value. MPW is included in KI.
In the second quarter of 2024, as a result of substantial digital advertising revenue declines and continued operating losses at WGB, the Company performed an interim review of the goodwill and intangible assets at the WGB reporting unit. As a result of the impairment review, the Company recorded goodwill and amortized intangible asset impairment charges totaling $26.3 million. The Company estimated the fair value of the reporting unit and amortized intangible asset by utilizing a discounted cash flow model. The carrying value of the reporting unit and amortized intangible asset exceeded their estimated fair values, resulting in goodwill and intangible asset impairment charges for the amount by which the carrying values exceeded their estimated fair values. WGB was included in other businesses.
In the third quarter of 2023, due to continued sustained weakness in demand for certain Dekko power and data products primarily in the commercial office space market, the Company performed an interim review of the goodwill of the Dekko reporting unit. As a result of the impairment review, the Company recorded a $47.8 million goodwill impairment charge. Also in the third quarter of 2023, as a result of the substantial digital advertising revenue declines and continued significant operating losses at WGB, the Company performed an interim review of the goodwill of the WGB reporting unit. As a result of the impairment review, the Company recorded a $50.2 million goodwill impairment charge. The Company estimated the fair value of the reporting units by utilizing a discounted cash flow model. The carrying value of the reporting units exceeded their estimated fair values, resulting in goodwill impairment charges for the amount by which the carrying values exceeded their estimated fair values after taking into account the effect of deferred income taxes. Dekko is included in manufacturing and WGB was included in other businesses.
Amortization of intangible assets for the years ended December 31, 2025, 2024 and 2023, was $32.0 million, $37.1 million and $50.0 million, respectively. Amortization of intangible assets is estimated to be approximately $24 million in 2026, $9 million in 2027, $6 million in 2028, $5 million in 2029, $5 million in 2030 and $13 million thereafter.
The changes in the carrying amount of goodwill, by segment, were as follows:
| (in thousands) | Education | Television Broadcasting | Healthcare | Manufacturing | Automotive | Other Businesses | Total | ||||||||||||||||||||||||||||||||||
| As of December 31, 2023 | |||||||||||||||||||||||||||||||||||||||||
| Goodwill | $ | 1,163,991 | $ | 190,815 | $ | 135,038 | $ | 234,993 | $ | 129,280 | $ | 251,216 | $ | 2,105,333 | |||||||||||||||||||||||||||
| Accumulated impairment losses | (331,151) | — | — | (82,062) | — | (166,926) | (580,139) | ||||||||||||||||||||||||||||||||||
| 832,840 | 190,815 | 135,038 | 152,931 | 129,280 | 84,290 | 1,525,194 | |||||||||||||||||||||||||||||||||||
| Acquisitions | 4,300 | — | — | — | — | — | 4,300 | ||||||||||||||||||||||||||||||||||
| Impairment | — | — | — | — | — | (7,502) | (7,502) | ||||||||||||||||||||||||||||||||||
| Dispositions | (1,684) | — | — | — | — | — | (1,684) | ||||||||||||||||||||||||||||||||||
Foreign currency exchange rate changes | (20,272) | — | — | — | — | — | (20,272) | ||||||||||||||||||||||||||||||||||
| As of December 31, 2024 | |||||||||||||||||||||||||||||||||||||||||
| Goodwill | 1,146,335 | 190,815 | 135,038 | 234,993 | 129,280 | 251,216 | 2,087,677 | ||||||||||||||||||||||||||||||||||
Accumulated impairment losses | (331,151) | — | — | (82,062) | — | (174,428) | (587,641) | ||||||||||||||||||||||||||||||||||
| 815,184 | 190,815 | 135,038 | 152,931 | 129,280 | 76,788 | 1,500,036 | |||||||||||||||||||||||||||||||||||
| Acquisitions | 1,262 | — | 1,599 | 37,530 | 11,552 | — | 51,943 | ||||||||||||||||||||||||||||||||||
| Dispositions | (1,204) | — | — | — | — | — | (1,204) | ||||||||||||||||||||||||||||||||||
Foreign currency exchange rate changes | 34,891 | — | — | — | — | — | 34,891 | ||||||||||||||||||||||||||||||||||
| As of December 31, 2025 | |||||||||||||||||||||||||||||||||||||||||
| Goodwill | 1,181,284 | 190,815 | 136,637 | 272,523 | 140,832 | 108,943 | 2,031,034 | ||||||||||||||||||||||||||||||||||
Accumulated impairment losses | (331,151) | — | — | (82,062) | — | (32,155) | (445,368) | ||||||||||||||||||||||||||||||||||
| $ | 850,133 | $ | 190,815 | $ | 136,637 | $ | 190,461 | $ | 140,832 | $ | 76,788 | $ | 1,585,666 | ||||||||||||||||||||||||||||
The changes in carrying amount of goodwill at the Company’s education and healthcare divisions were as follows:
| (in thousands) | Kaplan International | Higher Education | Supplemental Education | Total Education | CSI | Other Healthcare | Total Healthcare | ||||||||||||||||||||||||||||||||||
| As of December 31, 2023 | |||||||||||||||||||||||||||||||||||||||||
| Goodwill | $ | 598,000 | $ | 174,564 | $ | 391,427 | $ | 1,163,991 | $ | — | $ | 135,038 | $ | 135,038 | |||||||||||||||||||||||||||
| Accumulated impairment losses | — | (111,324) | (219,827) | (331,151) | — | — | — | ||||||||||||||||||||||||||||||||||
| 598,000 | 63,240 | 171,600 | 832,840 | — | 135,038 | 135,038 | |||||||||||||||||||||||||||||||||||
| Acquisitions | 4,300 | — | — | 4,300 | — | — | — | ||||||||||||||||||||||||||||||||||
| Dispositions | (1,684) | — | — | (1,684) | — | — | — | ||||||||||||||||||||||||||||||||||
| Foreign currency exchange rate changes | (20,121) | — | (151) | (20,272) | — | — | — | ||||||||||||||||||||||||||||||||||
| As of December 31, 2024 | |||||||||||||||||||||||||||||||||||||||||
| Goodwill | 580,495 | 174,564 | 391,276 | 1,146,335 | — | 135,038 | 135,038 | ||||||||||||||||||||||||||||||||||
| Accumulated impairment losses | — | (111,324) | (219,827) | (331,151) | — | — | — | ||||||||||||||||||||||||||||||||||
| 580,495 | 63,240 | 171,449 | 815,184 | — | 135,038 | 135,038 | |||||||||||||||||||||||||||||||||||
| Reallocation | — | — | — | — | 87,140 | (87,140) | — | ||||||||||||||||||||||||||||||||||
| Acquisitions | — | — | 1,262 | 1,262 | — | 1,599 | 1,599 | ||||||||||||||||||||||||||||||||||
| Dispositions | (1,204) | — | — | (1,204) | — | — | — | ||||||||||||||||||||||||||||||||||
Foreign currency exchange rate changes | 34,805 | — | 86 | 34,891 | — | — | — | ||||||||||||||||||||||||||||||||||
| As of December 31, 2025 | |||||||||||||||||||||||||||||||||||||||||
| Goodwill | 614,096 | 174,564 | 392,624 | 1,181,284 | 87,140 | 49,497 | 136,637 | ||||||||||||||||||||||||||||||||||
| Accumulated impairment losses | — | (111,324) | (219,827) | (331,151) | — | — | — | ||||||||||||||||||||||||||||||||||
| $ | 614,096 | $ | 63,240 | $ | 172,797 | $ | 850,133 | $ | 87,140 | $ | 49,497 | $ | 136,637 | ||||||||||||||||||||||||||||
Other intangible assets consist of the following:
| As of December 31, 2025 | As of December 31, 2024 | ||||||||||||||||||||||||||||||||||||||||
| (in thousands) | Useful Life Range | Gross Carrying Amount | Accumulated Amortization | Net Carrying Amount | Gross Carrying Amount | Accumulated Amortization | Net Carrying Amount | ||||||||||||||||||||||||||||||||||
| Amortized Intangible Assets | |||||||||||||||||||||||||||||||||||||||||
Student and customer relationships | 2–10 years | $ | 307,312 | $ | 266,453 | $ | 40,859 | $ | 281,140 | $ | 252,969 | $ | 28,171 | ||||||||||||||||||||||||||||
Trade names and trademarks | 2–10 years | 114,227 | 98,147 | 16,080 | 116,081 | 94,408 | 21,673 | ||||||||||||||||||||||||||||||||||
Network affiliation agreements | 10 years | 17,400 | 15,588 | 1,812 | 17,400 | 13,848 | 3,552 | ||||||||||||||||||||||||||||||||||
Databases and technology | 3–6 years | 32,376 | 30,293 | 2,083 | 33,290 | 33,290 | — | ||||||||||||||||||||||||||||||||||
Other | 1–8 years | 38,063 | 37,266 | 797 | 41,514 | 38,214 | 3,300 | ||||||||||||||||||||||||||||||||||
| $ | 509,378 | $ | 447,747 | $ | 61,631 | $ | 489,425 | $ | 432,729 | $ | 56,696 | ||||||||||||||||||||||||||||||
Indefinite-Lived Intangible Assets | |||||||||||||||||||||||||||||||||||||||||
| Franchise agreements | $ | 97,002 | $ | 92,158 | |||||||||||||||||||||||||||||||||||||
| Trade names and trademarks | 62,653 | 60,994 | |||||||||||||||||||||||||||||||||||||||
| FCC licenses | 11,000 | 11,000 | |||||||||||||||||||||||||||||||||||||||
| Other | 150 | 171 | |||||||||||||||||||||||||||||||||||||||
| $ | 170,805 | $ | 164,323 | ||||||||||||||||||||||||||||||||||||||
About Goodwill & Intangibles Disclosures
Goodwill and intangible asset disclosures reveal the premium paid in acquisitions and how management assesses whether that premium retains its value. Since goodwill is no longer amortized under US GAAP, the annual impairment test is the only mechanism that adjusts carrying values downward — making the assumptions behind that test critically important for investors.
Key signals: a history of goodwill impairments suggests management consistently overpays for acquisitions. Watch the gap between reporting unit fair value and carrying amount — when fair value exceeds carrying amount by less than 10-20%, a small decline in business performance could trigger a write-down. For finite-lived intangibles, examine useful life assumptions across customer relationships, technology, and trade names; aggressive estimates inflate near-term earnings. Compare total intangibles-to-total-assets ratios against peers to assess acquisition dependency. Rising goodwill as a percentage of equity can signal balance sheet fragility.