Company: GHC
Filing Date: 2025-07-30
Form Type: 10-Q
Source: 0000104889-25-000062
Chunk: 19

Company: Graham Holdings Co
Filing Date: 2025-07-30
Form: 10-Q
Item: Part I, Item 1
Chunk 19
---
 all financial covenants of the revolving credit facility and term loans as of June 30, 2025.During the three months ended June 30, 2025 and 2024, the Company had average borrowings outstanding of approximately $886.4 million and $841.8 million, respectively, at average annual interest rates of approximately 6.0% and 6.4%, respectively. During the three months ended June 30, 2025 and 2024, the Company incurred net interest expense of $15.8 million and $89.3 million, respectively.During the six months ended June 30, 2025 and 2024, the Company had average borrowings outstanding of approximately $828.7 million and $826.9 million, respectively, at average annual interest rates of approximately 6.0% and 6.4%, respectively. During the six months ended June 30, 2025 and 2024, the Company incurred net interest expense of $95.6 million and $106.4 million, respectively.During the three and six months ended June 30, 2025, the Company recorded interest expense of $1.2 million and $67.6 million, respectively, to adjust the fair value of the mandatorily redeemable noncontrolling interest. During the three and six months ended June 30, 2024, the Company recorded interest expense of $73.5 million and $75.4 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).

13

8.    FAIR VALUE MEASUREMENTS 

The Company’s financial assets and liabilities measured at fair value on a recurring basis were as follows:As of June 30, 2025(in thousands)Level 1Level 2Level 3TotalAssets      Money market investments (1) $— $6,008 $— $6,008 Marketable equity securities (2)889,515 — —