Company: GHC
Filing Date: 2025-10-29
Form Type: 10-Q
Source: 0001628280-25-046925
Chunk: 18

Company: Graham Holdings Co
Filing Date: 2025-10-29
Form: 10-Q
Item: Part I, Item 1
Chunk 18
---
 Company was in compliance with all of these restrictive covenants as of September 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 September 30, 2025 and 2024, the Company recognized a reduction in cost of goods sold of $2.1 million and $2.3 million, respectively, related to manufacturer floor plan assistance. For the nine months ended September 30, 2025 and 2024, the Company recognized a reduction in cost of goods sold of $6.1 million and $6.9 million, respectively, related to manufacturer floor plan assistance.As of September 30, 2025 and December 31, 2024, the Company had $107.2 million and $133.5 million, respectively, in obligations outstanding related to floor plan facilities associated with new vehicles.

5.    INVENTORIES AND CONTRACTS IN PROGRESS

Inventories and contracts in progress consist of the following:As ofSeptember 30,2025December 31,2024(in thousands)Raw materials$72,521 $46,058 Work-in-process11,862 12,685 Finished goods218,365 234,344 Contracts in progress3,509 2,721  $306,257 $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 at WGB, the Company performed an interim review of the goodwill and intangible assets at the WGB reporting unit. As a result of the impairment review, the Company recorded goodwill and amortized intangible asset impairment charges totaling $26.3 million. The Company estimated the fair value of the reporting unit and amortized intangible asset by utilizing a discounted cash flow model. The carrying value of the reporting unit and amortized intangible asset exceeded their estimated fair values, resulting in goodwill and intangible asset impairment charges for the amount by which the carrying values exceeded their estimated fair values. WGB is included in other businesses.Amortization of intangible assets for the three months ended September 30, 2025 and 2024, was $9.7 million and $8.4 million