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

Company: Graham Holdings Co
Filing Date: 2025-02-26
Form: 10-K
Item: Item 16
Chunk 25
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 and contingent consideration; a $3.1 million increase in the fair value of cost method investments; a $1.0 million gain on sales of cost method investments, and other items; partially offset by $1.1 million in foreign currency losses and a $0.5 million impairment on a cost method investment. 

Provision for Income Taxes

The Company’s effective tax rates for 2024 and 2023 were 28.5% and 29.2%, respectively. The Company’s effective tax rates in 2024 and 2023 were unfavorably impacted by permanent differences related to the goodwill and intangible asset impairment charges and the interest expense recorded to adjust the fair value of the mandatorily redeemable noncontrolling interest at GHG. Excluding the impact of these items, the overall income tax rates for 2024 and 2023 were 25.8% and 24.0%, respectively.

Earnings Per Share

The calculation of diluted earnings per share for the 2024 was based on 4,404,807 weighted average shares outstanding, compared to 4,653,626 for 2023. At December 31, 2024, there were 4,332,307 shares outstanding.

60

FINANCIAL CONDITION: LIQUIDITY AND CAPITAL RESOURCES

The Company considers the following when assessing its liquidity and capital resources:

 As of December 31(In thousands)20242023Cash and cash equivalents$260,852 $169,897 Restricted cash37,001 31,994 Investments in marketable equity securities and other investments858,743 697,028 Total debt748,192 811,833 

Cash generated by operations is the Company’s primary source of liquidity. The Company maintains investments in a portfolio of marketable equity securities, which is considered when assessing the Company’s sources of liquidity. An additional source of liquidity includes the undrawn portion of the Company’s $300 million revolving credit facility, amounting to $237.2 million at December 31, 2024 and the undrawn $50.0 million delayed draw term loan at the automotive subsidiary. 

During 2024, the Company’s cash and cash equivalents increased by $91.0 million, due to cash generated from operations and the net proceeds from the sale and purchase of marketable equity securities, which were partially offset by share repurchases, payment of borrowings, capital expenditures and dividend payments. In 2024, the Company’s