Company: GHC
Filing Date: 2025-07-30
Form Type: 10-Q
Source: 0000104889-25-000062
Chunk: 57

Company: Graham Holdings Co
Filing Date: 2025-07-30
Form: 10-Q
Item: Part I, Item 8
Chunk 57
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 months ended June 30, 2025 and 2024, respectively, which is included in interest expense in the Condensed Consolidated Statements of Operations. The Company incurred floor plan interest expense of $4.1 million and $6.0 million for the six months ended June 30, 2025 and 2024, respectively. Changes in the vehicle floor plan payable are reported as cash flows from financing activities in the Condensed Consolidated Statements of Cash Flows.The floor plan facilities are collateralized by vehicle inventory and other assets of the relevant dealership subsidiary, and contain a number of covenants, including, among others, covenants restricting the dealership subsidiary with respect to the creation of liens and changes in ownership, officers and key management personnel. The Company was in compliance with all of these restrictive covenants as of June 30, 2025.The floor plan interest expense related to the vehicle floor plan arrangements is offset by amounts received from manufacturers in the form of floor plan assistance capitalized in inventory and recorded against cost of goods sold in the Condensed Consolidated Statements of Operations when the associated inventory is sold. For the three months ended June 30, 2025 and 2024, the Company recognized a reduction in cost of goods sold of $2.0 million and $2.4 million, respectively, related to manufacturer floor plan assistance. For the six months ended June 30, 2025 and 2024, the Company recognized a reduction in cost of goods sold of $4.0 million and $4.6 million, respectively, related to manufacturer floor plan assistance.As of June 30, 2025 and December 31, 2024, the Company had $101.1 million and $133.5 million, respectively, in obligations outstanding related to floor plan facilities associated with new vehicles.

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5.    INVENTORIES AND CONTRACTS IN PROGRESS

Inventories and contracts in progress consist of the following:As ofJune 30,2025December 31,2024(in thousands)Raw materials$43,978 $46,058 Work-in-process9,446 12,685 Finished goods211,875 234,344 Contracts in progress1,900 2,721  $267,199 $295,808 

6.    GOODWILL AND OTHER INTANGIBLE ASSETS

In the second quarter of 2024, as a result of substantial digital advertising revenue declines and continued operating losses