Company: GHC
Filing Date: 2025-02-26
Form Type: 10-K
Source: 0000104889-25-000022
Chunk: 23

Company: Graham Holdings Co
Filing Date: 2025-02-26
Form: 10-K
Item: Item 16
Chunk 23
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, compared to $5.2 million for 2023. These amounts include $3.5 million and $16.0 million in net losses for 2024 and 2023, respectively, from affiliates whose operations are not managed by the Company. The 2024 amount also includes a $14.4 million impairment loss on the Company’s investment in N2K Networks.

Net Interest Expense and Related Balances

The Company incurred net interest expense of $176.3 million in 2024, compared to $56.2 million in 2023. The Company recorded net interest expense of $119.3 million and $10.1 million in 2024 and 2023, respectively, to adjust the fair value of the mandatorily redeemable noncontrolling interest at GHG. The significant adjustment recorded in 2024 is largely related to a substantial increase in the estimated fair value of CSI. 

59

In September 2023, the automotive subsidiary of the Company entered into a credit agreement with Truist Bank to finance the acquisition of the Toyota of Richmond dealership and to repay the outstanding balance of the automotive subsidiary commercial notes that were maturing in 2031 and 2032. The related interest rate swaps were also terminated, resulting in a realized gain of $4.6 million recorded as a credit to interest expense during the third quarter of 2023.

Excluding these adjustments, the increase in net interest expense relates primarily to higher average debt balances, higher interest rates on the Company’s variable debt, and increased floor plan interest expense.

At December 31, 2024, the Company had $748.2 million in borrowings outstanding at an average interest rate of 6.0%, and cash, marketable equity securities and other investments of $1,156.6 million. At December 31, 2024, the Company had $62.8 million outstanding on its $300 million revolving credit facility. At December 31, 2023, the Company had $811.8 million in borrowings outstanding at an average interest rate of 6.4%, and cash, marketable equity securities and other investments of $898.9 million.

Non-Operating Pension and Postretirement Benefit Income, Net

The Company recorded net non-operating pension and postretirement benefit income of $794.9 million in 2024, compared to $133.8 million in 2023.

In the fourth quarter of 2024, the Company recorded a pre-tax,