Washington Post 2015 Annual Report Download - page 115

11. FAIR VALUE MEASUREMENTS
The Company’s financial assets and liabilities measured at fair value on a recurring basis were as follows:
As of December 31, 2015
(in thousands) Level 1 Level 2 Total
Assets
Money market investments(1) .................. $ – $433,040 $433,040
Marketable equity securities(3) ................. 350,563 – 350,563
Other current investments(4) ................... 12,822 16,060 28,882
Total Financial Assets .................... $363,385 $449,100 $812,485
Liabilities
Deferred compensation plan liabilities(5) ......... $ – $ 48,055 $ 48,055
As of December 31, 2014
(in thousands) Level 1 Level 2 Total
Assets
Money market investments(1) .................... $ – $368,131 $368,131
Commercial paper(2) ........................... 226,197 – 226,197
Marketable equity securities(3) ................... 193,793 – 193,793
Other current investments(4) ..................... 11,788 21,171 32,959
Total Financial Assets .................... $431,778 $389,302 $821,080
Liabilities
Deferred compensation plan liabilities(5) ........... $ – $ 70,661 $ 70,661
Interest rate swap(6) ............................ – 179 179
Total Financial Liabilities ................. $ – $ 70,840 $ 70,840
(1) The Company’s money market investments are included in cash, cash equivalents and restricted cash.
(2) The Company’s commercial paper investments with original maturities of 90 days or less are included in cash and cash equivalents.
(3) The Company’s investments in marketable equity securities are classified as available-for-sale.
(4) Includes U.S. Government Securities, corporate bonds, mutual funds and time deposits.
(5) Includes Graham Holdings Company’s Deferred Compensation Plan and supplemental savings plan benefits under the Graham Holdings
Company’s Supplemental Executive Retirement Plan, which are included in accrued compensation and related benefits. These plans
measure the market value of a participant’s balance in a notional investment account that is comprised primarily of mutual funds, which
are based on observable market prices. However, since the deferred compensation obligations are not exchanged in an active market,
they are classified as Level 2 in the fair value hierarchy. Realized and unrealized gains (losses) on deferred compensation are included in
operating income.
(6) Included in Other liabilities. The Company utilized a market approach model using the notional amount of the interest rate swap
multiplied by the observable inputs of time to maturity and market interest rates.
For the year ended December 31, 2015, the Company recorded goodwill and other long-lived assets impairment
charges of $259.7 million. For the year ended December 31, 2014, the Company recorded an intangible and other
long-lived assets impairment charge of $25.1 million, of which $7.8 million is reported in discontinued
operations. For the year ended December 31, 2013, the Company recorded an intangible and other long-lived
assets impairment charge of $3.3 million (see Notes 2 and 8). The remeasurement of the goodwill and other long-
lived assets is classified as a Level 3 fair value assessment due to the significance of unobservable inputs
developed in the determination of the fair value. The Company used a discounted cash flow model to determine
the estimated fair value of the reporting unit. A market value approach was also utilized to supplement the
discounted cash flow model. The Company made estimates and assumptions regarding future cash flows,
discount rates, long-term growth rates and market values to determine the reporting unit’s estimated fair value.
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