Fair Value Measurements (Tables)

6 Months Ended

Jun. 30, 2019

Schedule of Fair Value, Assets and Liabilities Measured on Recurring Basis

The Company’s financial assets and liabilities measured at fair value on a recurring basis were as follows:



	As of June 30, 2019
(in thousands)	Level 1		Level 2		Total
Assets
Money market investments ⁽¹⁾	$	—	$	71,000	$	71,000
Marketable equity securities ⁽²⁾	518,099		—		518,099
Other current investments ⁽³⁾	11,738		7,038		18,776
Interest rate swap ⁽⁴⁾	—		262		262
Total Financial Assets	$	529,837	$	78,300	$	608,137
Liabilities
Deferred compensation plan liabilities ⁽⁵⁾	$	—	$	32,901	$	32,901
Interest rate swap ⁽⁶⁾	—		324		324
Total Financial Liabilities	$	—	$	33,225	$	33,225



	As of December 31, 2018
(in thousands)	Level 1		Level 2		Total
Assets
Money market investments ⁽¹⁾	$	—	$	75,500	$	75,500
Marketable equity securities ⁽²⁾	496,390		—		496,390
Other current investments ⁽³⁾	11,203		6,988		18,191
Interest rate swap⁽⁴⁾	—		369		369
Total Financial Assets	$	507,593	$	82,857	$	590,450
Liabilities
Deferred compensation plan liabilities ⁽⁵⁾	$	—	$	36,080	$	36,080

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(1)	The Company’s money market investments are included in Cash and Cash Equivalents and the value considers the liquidity of the counterparty.


(2)	The Company’s investments in marketable equity securities are held in common shares of U.S. corporations that are actively traded on U.S. stock exchanges. Price quotes for these shares are readily available.


(3)	Includes U.S. Government Securities, corporate bonds, mutual funds and time deposits. These investments are valued using a market approach based on the quoted market prices of the security or inputs that include quoted market prices for similar instruments and are classified as either Level 1 or Level 2 in the fair value hierarchy.


(4)	Included in Deferred Charges and Other Assets. 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.

(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.