Company: GHC
Filing Date: 2025-04-30
Form Type: 10-Q
Source: 0000104889-25-000032
Chunk: 52

Company: Graham Holdings Co
Filing Date: 2025-04-30
Form: 10-Q
Item: Part I, Item 8
Chunk 52
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     The carrying value is net of $0.6 million of unamortized debt issuance costs as of March 31, 2025 and December 31, 2024.At March 31, 2025 and December 31, 2024, the fair value of the Company’s 5.75% unsecured notes, based on quoted market prices (Level 2 fair value assessment), totaled $401.0 million and $398.9 million, respectively.The outstanding balance on the Company’s $300 million unsecured revolving credit facility was $184.7 million as of March 31, 2025, consisting of U.S. dollar borrowings of $120 million with interest payable at SOFR plus 1.375%, and British Pound (GBP) borrowings of £50 million with interest payable at Daily Sterling Overnight Index Average (SONIA) plus 1.375%.The fair value of the Company’s other debt, which is based on Level 2 inputs, approximates its carrying value as of March 31, 2025 and December 31, 2024. The Company is in compliance with all financial covenants of the revolving credit facility and term loans as of March 31, 2025.During the three months ended March 31, 2025 and 2024, the Company had average borrowings outstanding of approximately $789.1 million and $810.7 million, respectively, at average annual interest rates of approximately 6.0% and 6.4%, respectively. During the three months ended March 31, 2025 and 2024, the Company incurred net interest expense of $79.8 million and $17.2 million, respectively.During the three months ended March 31, 2025 and 2024, the Company recorded interest expense of $66.4 million and $1.9 million, respectively, to adjust the fair value of the mandatorily redeemable noncontrolling interest. The fair value of the mandatorily redeemable noncontrolling interest was based on the fair value of the underlying subsidiaries owned by GHC One and GHC Two, after taking into account any debt and other noncontrolling interests of its subsidiary investments. The fair value of the owned subsidiaries is determined by reference to either a discounted cash flow or EBITDA multiple, which approximates fair value (Level 3 fair value assessment) (See Note 2 and 8).

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8.    FAIR VALUE MEAS