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UNITED STATES
SECURITIES AND EXCHANGE COMMISSION
WASHINGTON, DC 20549
FORM 10-Q
Quarterly Report Pursuant to Section 13 or 15(d) of the Securities Exchange Act of 1934
For the Quarterly Period Ended September 30, 2021
or
Transition Report Pursuant to Section 13 or 15(d) of the Securities Exchange Act of 1934
Commission File Number 001-06714
GRAHAM HOLDINGS COMPANY
(Exact name of registrant as specified in its charter)
Delaware53-0182885
(State or other jurisdiction of
incorporation or organization)
(I.R.S. Employer
Identification No.)
1300 North 17th Street, Arlington, Virginia

22209
(Address of principal executive offices)(Zip Code)
(703) 345-6300
(Registrant’s telephone number, including area code)
Securities Registered Pursuant to Section 12(b) of the Act:
Title of each classTrading Symbol(s)Name of each exchange on which registered
Class B Common Stock, par value $1.00 per share GHCNew York Stock Exchange
Indicate by check mark whether the registrant (1) has filed all reports required to be filed by Section 13 or 15(d) of the Securities Exchange Act of 1934 during the preceding 12 months (or for such shorter period that the registrant was required to file such reports), and (2) has been subject to such filing requirements for the past 90 days.   Yes  .    No  .
Indicate by check mark whether the registrant has submitted electronically every Interactive Data File required to be submitted pursuant to Rule 405 of Regulation S-T (§232.405 of this chapter) during the preceding 12 months (or for such shorter period that the registrant was required to submit such files).  Yes  .    No  .  
Indicate by check mark whether the registrant is a large accelerated filer, an accelerated filer, a non-accelerated filer, a smaller reporting company, or an emerging growth company. See the definitions of “large accelerated filer,” “accelerated filer,” “smaller reporting company” and “emerging growth company” in Rule 12b-2 of the Exchange Act.
Large Accelerated Filer
Accelerated
filer
Non-accelerated
filer
Smaller reporting
company
Emerging growth
company
If an emerging growth company, indicate by check mark if the registrant has elected not to use the extended transition period for complying with any new or revised financial accounting standards provided pursuant to Section 13(a) of the Exchange Act.
Indicate by check mark whether the registrant is a shell company (as defined in Rule 12b-2 of the Exchange Act). Yes  .    No  .  
Shares outstanding at October 29, 2021:
Class A Common Stock – 964,001 Shares
Class B Common Stock – 3,988,665 Shares



GRAHAM HOLDINGS COMPANY
Index to Form 10-Q
 
PART I. FINANCIAL INFORMATION
 
Item 1.
Financial Statements
 
 
Condensed Consolidated Statements of Operations
 
 
 
 
Condensed Consolidated Statements of Comprehensive Income
 
 
 
 
Condensed Consolidated Balance Sheets
 
 
 
 
Condensed Consolidated Statements of Cash Flows
Condensed Consolidated Statements of Changes in Common Stockholders' Equity
 
 
 
 
Notes to Condensed Consolidated Financial Statements

Organization, Basis of Presentation and Recent Accounting Pronouncements

Acquisitions and Dispositions of Businesses

Investments

Accounts Receivable, Accounts Payable and Accrued Liabilities

Inventories, Contracts in Progress and Vehicle Floor Plan Payable

Goodwill and Other Intangible Assets

Debt

Fair Value Measurements

Income Taxes

Revenue From Contracts With Customers

Earnings Per Share

Pension and Postretirement Plans

Other Non-Operating Income

Accumulated Other Comprehensive Income (Loss)

Contingencies

Business Segments
Item 2.
Management’s Discussion and Analysis of Results of Operations and Financial Condition
 
 
 
Item 3.
Quantitative and Qualitative Disclosures about Market Risk
 
 
 
Item 4.
Controls and Procedures
 
 
PART II. OTHER INFORMATION
 
Item 1A.
Risk Factors
 
 
 
Item 2.
Unregistered Sales of Equity Securities and Use of Proceeds
Item 6.
Exhibits
 
 
Signatures



PART I. FINANCIAL INFORMATION
Item 1. Financial Statements.
GRAHAM HOLDINGS COMPANY
CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS (UNAUDITED)
  Three Months Ended 
 September 30
Nine Months Ended 
 September 30
  
(in thousands, except per share amounts)2021202020212020
Operating Revenues
Sales of services$515,280 $492,399 $1,509,986 $1,492,631 
Sales of goods294,156 224,583 813,057 609,479 
809,436 716,982 2,323,043 2,102,110 
Operating Costs and Expenses    
Cost of services sold (exclusive of items shown below)307,138 298,250 906,555 929,877 
Cost of goods sold (exclusive of items shown below)241,539 177,734 647,218 481,260 
Selling, general and administrative215,891 166,207 587,181 506,199 
Depreciation of property, plant and equipment18,741 18,481 51,886 58,098 
Amortization of intangible assets15,981 14,150 43,807 42,642 
Impairment of goodwill and other long-lived assets26,753 1,916 31,568 29,828 
  826,043 676,738 2,268,215 2,047,904 
(Loss) Income from Operations(16,607)40,244 54,828 54,206 
Equity in earnings of affiliates, net12,964 4,092 28,168 3,727 
Interest income(79)890 2,687 2,995 
Interest expense(9,343)(7,247)(25,144)(22,302)
Non-operating pension and postretirement benefit income, net27,561 10,489 81,564 41,028 
Gain (loss) on marketable equity securities, net14,069 59,364 176,981 (1,139)
Other income, net5,218 222 27,660 11,010 
Income Before Income Taxes33,783 108,054 346,744 89,525 
(Benefit from) Provision for Income Taxes(5,900)30,000 78,500 26,500 
Net Income39,683 78,054 268,244 63,025 
Net (Income) Loss Attributable to Noncontrolling Interests(97)(439)(850)199 
Net Income Attributable to Graham Holdings Company Common Stockholders$39,586 $77,615 $267,394 $63,224 
Per Share Information Attributable to Graham Holdings Company Common Stockholders
      
Basic net income per common share$7.93 $15.25 $53.49 $12.15 
Basic average number of common shares outstanding4,961 5,060 4,966 5,176 
Diluted net income per common share$7.90 $15.22 $53.33 $12.11 
Diluted average number of common shares outstanding4,977 5,072 4,980 5,192 
See accompanying Notes to Condensed Consolidated Financial Statements.
1


GRAHAM HOLDINGS COMPANY
CONDENSED CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME (UNAUDITED)
  Three Months Ended 
 September 30
Nine Months Ended 
 September 30
(in thousands)2021202020212020
Net Income$39,683 $78,054 $268,244 $63,025 
Other Comprehensive (Loss) Income, Before Tax      
Foreign currency translation adjustments:      
Translation adjustments arising during the period(16,033)20,430 (15,352)(541)
Pension and other postretirement plans:        
Amortization of net prior service cost included in net income
793 671 2,377 2,010 
Amortization of net actuarial (gain) loss included in net income
(1,066)304 (4,419)914 
  (273)975 (2,042)2,924 
Cash flow hedges gain (loss)169 157 803 (1,564)
Other Comprehensive (Loss) Income, Before Tax(16,137)21,562 (16,591)819 
Income tax benefit (expense) related to items of other comprehensive (loss) income
11 (299)342 (431)
Other Comprehensive (Loss) Income, Net of Tax(16,126)21,263 (16,249)388 
Comprehensive Income23,557 99,317 251,995 63,413 
Comprehensive (income) loss attributable to noncontrolling interests
(97)(439)(850)199 
Total Comprehensive Income Attributable to Graham Holdings Company$23,460 $98,878 $251,145 $63,612 

See accompanying Notes to Condensed Consolidated Financial Statements.
2


GRAHAM HOLDINGS COMPANY
CONDENSED CONSOLIDATED BALANCE SHEETS
As of
(in thousands)September 30,
2021
December 31,
2020
  (Unaudited)  
Assets    
Current Assets    
Cash and cash equivalents$133,882 $413,991 
Restricted cash14,272 9,063 
Investments in marketable equity securities and other investments779,073 587,582 
Accounts receivable, net578,592 537,156 
Inventories and contracts in progress100,258 120,622 
Prepaid expenses78,212 75,523 
Income taxes receivable15,654 29,313 
Other current assets1,641 942 
Total Current Assets1,701,584 1,774,192 
Property, Plant and Equipment, Net461,107 378,286 
Lease Right-of-Use Assets427,225 462,560 
Investments in Affiliates171,249 155,777 
Goodwill, Net1,612,343 1,484,750 
Indefinite-Lived Intangible Assets120,093 120,437 
Amortized Intangible Assets, Net248,246 204,646 
Prepaid Pension Cost1,772,859 1,708,305 
Deferred Income Taxes7,854 8,396 
Deferred Charges and Other Assets (includes $782 and $0 of restricted cash)
156,912 146,770 
Total Assets$6,679,472 $6,444,119 
Liabilities and Equity    
Current Liabilities    
Accounts payable and accrued liabilities$506,638 $520,236 
Deferred revenue371,208 331,021 
Income taxes payable6,869 5,140 
Current portion of lease liabilities84,144 86,797 
Current portion of long-term debt44,254 6,452 
Dividends declared7,496  
Total Current Liabilities1,020,609 949,646 
Accrued Compensation and Related Benefits205,514 201,918 
Other Liabilities33,282 48,768 
Deferred Income Taxes522,923 521,274 
Mandatorily Redeemable Noncontrolling Interest11,921 9,240 
Lease Liabilities392,438 428,849 
Long-Term Debt511,635 506,103 
Total Liabilities2,698,322 2,665,798 
Redeemable Noncontrolling Interests7,412 11,928 
Preferred Stock  
Common Stockholders’ Equity    
Common stock20,000 20,000 
Capital in excess of par value388,386 388,159 
Retained earnings7,042,061 6,804,822 
Accumulated other comprehensive income, net of taxes  
Cumulative foreign currency translation adjustment(5,598)9,754 
Unrealized gain on pensions and other postretirement plans593,773 595,287 
Cash flow hedges(1,110)(1,727)
Cost of Class B common stock held in treasury(4,073,677)(4,056,993)
Total Common Stockholders’ Equity3,963,835 3,759,302 
Noncontrolling Interests9,903 7,091 
Total Equity3,973,738 3,766,393 
Total Liabilities and Equity$6,679,472 $6,444,119 

See accompanying Notes to Condensed Consolidated Financial Statements.
3


GRAHAM HOLDINGS COMPANY
CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS (UNAUDITED)
  Nine Months Ended 
 September 30
(in thousands)20212020
Cash Flows from Operating Activities    
Net Income$268,244 $63,025 
Adjustments to reconcile net income to net cash provided by operating activities:    
Depreciation, amortization and goodwill and other long-lived asset impairments127,261 130,568 
Amortization of lease right-of-use asset55,246 70,214 
Net pension benefit and special separation benefit expense(68,644)(27,669)
Gain on marketable equity securities and cost method investments, net(179,737)(493)
Gain on disposition and write-down of businesses, property, plant and equipment, investments and other assets, net(14,406)(5,918)
Provision for doubtful trade receivables4,171 8,229 
Stock-based compensation expense, net4,686 4,758 
Foreign exchange gain(674)(877)
Equity in (earnings) losses of affiliates, net of distributions(11,364)2,784 
Provision for (benefit from) deferred income taxes43,580 (733)
Accretion expense and change in fair value of contingent consideration liabilities(4,325) 
Change in operating assets and liabilities:
Accounts receivable, net(27,350)139,306 
Inventories21,117 51 
Accounts payable and accrued liabilities(7,979)(65,708)
Deferred revenue33,561 (26,094)
Income taxes receivable10,724 (190)
Lease liabilities(61,775)(67,299)
Other assets and other liabilities, net3,192 16,791 
Other1,743 145 
Net Cash Provided by Operating Activities197,271 240,890 
Cash Flows from Investing Activities    
Investments in certain businesses, net of cash acquired(272,428)(20,080)
Purchases of property, plant and equipment(140,935)(56,121)
Purchases of marketable equity securities(48,036) 
Proceeds from sales of marketable equity securities38,308 93,775 
Investments in equity affiliates, cost method and other investments
(6,610)(8,298)
Net proceeds from disposition of businesses, property, plant and equipment, investments and other assets
8,771 1,570 
Return of investment in equity affiliates474 314 
Other  1,562 
Net Cash (Used in) Provided by Investing Activities(420,456)12,722 
Cash Flows from Financing Activities    
Deferred payments of acquisitions(30,866)(5,010)
Dividends paid(22,659)(22,870)
Net borrowings under revolving credit facilities37,696 75,905 
Repayments of borrowings(16,878)(75,841)
Issuance of borrowings22,684 2,084 
Common shares repurchased(21,840)(123,155)
Net payments on vehicle floor plan payable(15,035)(16,300)
Purchase of noncontrolling interest(3,508) 
Proceeds from bank overdrafts1,137 6,454 
Proceeds from exercise of stock options 5,335 
Other1,244 (276)
Net Cash Used in Financing Activities(48,025)(153,674)
Effect of Currency Exchange Rate Change(2,908)(2,729)
Net (Decrease) Increase in Cash and Cash Equivalents and Restricted Cash(274,118)97,209 
Beginning Cash and Cash Equivalents and Restricted Cash423,054 214,044 
Ending Cash and Cash Equivalents and Restricted Cash$148,936 $311,253 


See accompanying Notes to Condensed Consolidated Financial Statements.
4


GRAHAM HOLDINGS COMPANY
CONDENSED CONSOLIDATED STATEMENTS OF CHANGES IN COMMON STOCKHOLDERS’ EQUITY (UNAUDITED)
(in thousands)Common
Stock
Capital in
Excess of
Par Value
Retained
Earnings
Accumulated Other Comprehensive IncomeTreasury
Stock
Noncontrolling
Interest
Total EquityRedeemable Noncontrolling Interest
As of December 31, 2020$20,000 $388,159 $6,804,822 $603,314 $(4,056,993)$7,091 $3,766,393 $11,928 
Net income for the period112,635 112,635 
Net income attributable to noncontrolling interests(185)185  
Change in redemption value of redeemable noncontrolling interests697 64 761 (634)
Distribution to noncontrolling interest(126)(126)
Dividends on common stock(15,106)(15,106)
Issuance of Class B common stock, net of restricted stock forfeitures(5,188)5,084 (104)
Amortization of unearned stock compensation and stock option expense1,589 1,589 
Other comprehensive loss, net of income taxes(1,203)(1,203)
Purchase of redeemable noncontrolling interest (3,508)
As of March 31, 2021$20,000 $385,257 $6,902,166 $602,111 $(4,051,909)$7,214 $3,864,839 $7,786 
Net income for the period115,926 115,926 
Net income attributable to noncontrolling interests(699)699  
Net loss attributable to redeemable noncontrolling interests131 131 (131)
Change in redemption value of redeemable noncontrolling interests65 65 65 
Distribution to noncontrolling interest(152)(152)
Dividends on common stock(7,553)(7,553)
Forfeiture of restricted stock awards, net of Class B common stock issuances(47)(49)(96)
Amortization of unearned stock compensation and stock option expense1,672 1,672 
Other comprehensive income, net of income taxes1,080 1,080 
As of June 30, 2021$20,000 $386,882 $7,009,971 $603,191 $(4,051,958)$7,826 $3,975,912 $7,720 
Net income for the period39,683 39,683 
Noncontrolling interest capital contribution1,750 1,750 
Net income attributable to noncontrolling interest(469)469  
Net loss attributable to redeemable noncontrolling interests372 372 (372)
Change in redemption value of redeemable noncontrolling interests64 64 64 
Distribution to noncontrolling interest(206)(206)
Dividends on common stock(7,496)(7,496)
Repurchase of Class B common stock(21,840)(21,840)
Issuance of Class B common stock, net of restricted stock forfeitures(188)121 (67)
Amortization of unearned stock compensation and stock option expense1,692 1,692 
Other comprehensive loss, net of income taxes(16,126)(16,126)
As of September 30, 2021$20,000 $388,386 $7,042,061 $587,065 $(4,073,677)$9,903 $3,973,738 $7,412 
5


(in thousands)Common
Stock
Capital in
Excess of
Par Value
Retained
Earnings
Accumulated Other Comprehensive IncomeTreasury
Stock
Noncontrolling
Interest
Total EquityRedeemable Noncontrolling Interest
As of December 31, 2019$20,000 $381,669 $6,534,427 $303,295 $(3,920,152)$7,557 $3,326,796 $5,655 
Net loss for the period(33,891)(33,891)
Net loss attributable to noncontrolling interests772 (772) 
Net income attributable to redeemable noncontrolling interests
(126)(126)126 
Dividends on common stock(15,289)(15,289)
Repurchase of Class B common stock(33,610)(33,610)
Issuance of Class B common stock
5,335 5,335 
Amortization of unearned stock compensation and stock option expense
1,568 1,568 
Other comprehensive loss, net of income taxes
(37,943)(37,943)
As of March 31, 2020$20,000 $383,237 $6,485,893 $265,352 $(3,948,427)$6,785 $3,212,840 $5,781 
Net income for the period18,862 18,862 
Net loss attributable to noncontrolling interests
37 (37) 
Acquisition of redeemable noncontrolling interest 6,005 
Net income attributable to redeemable noncontrolling interests
(45)(45)45 
Dividends on common stock(7,581)(7,581)
Repurchase of Class B common stock(29,295)(29,295)
Amortization of unearned stock compensation and stock option expense
1,567 1,567 
Other comprehensive income, net of income taxes17,068 17,068 
As of June 30, 2020$20,000 $384,804 $6,497,166 $282,420 $(3,977,722)$6,748 $3,213,416 $11,831 
Net income for the period78,054 78,054 
Net income attributable to noncontrolling interest(373)373  
Net income attributable to redeemable noncontrolling interests(66)(66)66 
Distribution to noncontrolling interest(276)(276)
Dividends on common stock(7,100)(7,100)
Repurchase of Class B common stock(60,250)(60,250)
Forfeiture of restricted stock awards, net of Class B common stock issuances(66)(80)(146)
Amortization of unearned stock compensation and stock option expense1,768 1,768 
Other comprehensive income, net of income taxes21,263 21,263 
Other(5)(5)
As of September 30, 2020$20,000 $386,506 $6,567,676 $303,683 $(4,038,052)$6,845 $3,246,658 $11,897 

See accompanying Notes to Condensed Consolidated Financial Statements.
6


GRAHAM HOLDINGS COMPANY
NOTES TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS
(UNAUDITED)
1. ORGANIZATION, BASIS OF PRESENTATION AND RECENT ACCOUNTING PRONOUNCEMENTS
Graham Holdings Company (the Company), is a diversified education and media company. The Company’s Kaplan subsidiary provides a wide variety of educational services, both domestically and outside the United States (U.S.). The Company’s media operations comprise the ownership and operation of seven television broadcasting stations, several websites and print publications, podcast content and a marketing solutions provider. The Company’s other business operations include manufacturing, automotive dealerships, consumer internet brands, restaurants and entertainment venues, custom framing services and home health and hospice services.
Basis of Presentation – The accompanying condensed consolidated financial statements have been prepared in accordance with: (i) generally accepted accounting principles in the United States of America (GAAP) for interim financial information; (ii) the instructions to Form 10-Q; and (iii) the guidance of Rule 10-01 of Regulation S-X under the Securities and Exchange Act of 1934, as amended, for financial statements required to be filed with the Securities and Exchange Commission (SEC). They include the assets, liabilities, results of operations and cash flows of the Company, including its domestic and foreign subsidiaries that are more than 50% owned or otherwise controlled by the Company. As permitted under such rules, certain notes and other financial information normally required by GAAP have been condensed or omitted. Management believes the accompanying condensed consolidated financial statements reflect all normal and recurring adjustments necessary for a fair statement of the Company’s financial position, results of operations, and cash flows as of and for the periods presented herein. The Company’s results of operations for the three and nine months ended September 30, 2021 and 2020 may not be indicative of the Company’s future results. These condensed consolidated financial statements are unaudited and should be read in conjunction with the Company’s audited consolidated financial statements and the notes thereto included in the Company’s Annual Report on Form 10-K for the fiscal year ended December 31, 2020.
The year-end condensed consolidated balance sheet data was derived from audited financial statements, but does not include all disclosures required by GAAP.
Use of Estimates in the Preparation of the Condensed Consolidated Financial Statements – The preparation of the condensed consolidated financial statements in conformity with GAAP requires management to make estimates and judgments that affect the amounts reported herein. Management bases its estimates and assumptions on historical experience and on various other factors that are believed to be reasonable under the circumstances. Due to the inherent uncertainty involved in making estimates, actual results reported in future periods may be affected by changes in those estimates.
The Company assessed certain accounting matters that generally require consideration of forecasted financial information, in context with the information reasonably available to the Company and the unknown future impacts of the novel coronavirus (COVID-19) pandemic as of September 30, 2021 and through the date of this filing. The accounting matters assessed included, but were not limited to, the Company’s carrying value of goodwill and other long-lived assets, allowance for doubtful accounts, inventory valuation and related reserves, fair value of financial assets, valuation allowances for tax assets and revenue recognition. Other than the goodwill and other long-lived asset impairment charges (see Note 6 and Note 8), there were no other impacts to the Company’s condensed consolidated financial statements as of and for the nine months ended September 30, 2021 resulting from our assessments. The Company’s assessments as of and for the nine months ended September 30, 2020 resulted in goodwill, indefinite-lived asset and other long-lived asset impairment charges (see Note 6 and Note 8). The Company’s future assessment of the magnitude and duration of COVID-19, as well as other factors, could result in material impacts to the Company’s condensed consolidated financial statements in future reporting periods.
2. ACQUISITIONS AND DISPOSITIONS OF BUSINESSES
Acquisitions. On June 14, 2021, the Company acquired all of the outstanding common shares of Leaf Group Ltd. (Leaf) for $308.6 million in cash and the assumption of $9.2 million in liabilities related to their previous stock compensation plan, which will be paid in the future. Leaf is a consumer internet company that builds creator-driven brands in lifestyle and home and art design categories. The acquisition is expected to provide benefits in the future by diversifying the Company’s business operations and providing operating synergies with other business units. The Company includes Leaf in other businesses.
During 2020, the Company acquired three businesses: two in education and one in other businesses for $96.8 million in cash and contingent consideration. The assets and liabilities of the companies acquired were recorded at their estimated fair values at the date of acquisition.
7


In the first three months of 2020, Kaplan acquired two small businesses; one in its supplemental education division and one in its international division.
In May 2020, the Company acquired an additional interest in Framebridge, Inc. for cash and contingent consideration that resulted in the Company obtaining control of the investee. Following the acquisition, the Company owns 93.4% of Framebridge. The Company previously accounted for Framebridge under the equity method, and included it in Investments in Affiliates on the Condensed Consolidated Balance Sheet (see Note 3). The contingent consideration is primarily based on Framebridge achieving revenue milestones within a specific time period. The fair value of the contingent consideration at the acquisition date was $50.6 million, determined using a Monte Carlo simulation. The fair value of the redeemable noncontrolling interest in Framebridge was $6.0 million as of the acquisition date, determined using a market approach. The minority shareholder has an option to put 20% of the minority shares annually starting in 2024. The acquisition is expected to provide benefits in the future by diversifying the Company’s business operations and is included in other businesses.
Acquisition-related costs for acquisitions that closed during the first nine months of 2021 and 2020 were $1.6 million and $1.1 million, respectively, and were expensed as incurred. The aggregate purchase price of the 2021 and 2020 acquisitions was allocated as follows (2021 on a preliminary basis), based on acquisition date fair values to the following assets and liabilities:
Purchase Price Allocation
Nine Months EndedYear Ended
(in thousands)September 30, 2021December 31, 2020
Accounts receivable$16,080 $745 
Inventory777 3,496 
Property, plant and equipment6,019 3,346 
Lease right-of-use assets7,744 6,580 
Goodwill167,334 73,951 
Amortized intangible assets88,000 14,589 
Other assets4,507 975 
Deferred income taxes40,850 15,958 
Other liabilities(49,823)(14,917)
Current and noncurrent lease liabilities(7,742)(6,593)
Redeemable noncontrolling interest (6,005)
Aggregate purchase price, net of cash acquired$273,746 $92,125 
The 2021 fair values recorded were based upon preliminary valuations and the estimates and assumptions used in such valuations are subject to change within the measurement period (up to one year from the acquisition date). The recording of deferred tax assets and liabilities, and the amounts of residual goodwill and other intangibles are not yet finalized. Goodwill is calculated as the excess of the consideration transferred over the net assets recognized and represents the estimated future economic benefits arising from other assets acquired that could not be individually identified and separately recognized. The goodwill recorded due to these acquisitions is attributable to the assembled workforces of the acquired companies and expected synergies. The Company expects to deduct $43.4 million and $3.2 million of goodwill for income tax purposes for the acquisitions completed in 2021 and 2020, respectively.
The acquired companies were consolidated into the Company’s financial statements starting on their respective acquisition dates. The Company's Condensed Consolidated Statements of Operations for the third quarter of 2021 include aggregate revenues and operating losses for the company acquired in 2021 of $57.5 million and $7.2 million, respectively. The Company's Condensed Consolidated Statements of Operations include aggregate revenues and operating losses of $66.7 million and $9.1 million, respectively, for the first nine months of 2021. The following unaudited pro forma financial information presents the Company’s results as if the current year acquisitions had occurred at the beginning of 2020. The unaudited pro forma information also includes the 2020 acquisitions as if they occurred at the beginning of 2019: