Company: GHC
Filing Date: 2025-02-26
Form Type: 10-K
Source: 0000104889-25-000022
Chunk: 82

Company: Graham Holdings Co
Filing Date: 2025-02-26
Form: 10-K
Item: Item 16
Chunk 82
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ated 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 December 31, 2024.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 Consolidated Statements of Operations when the associated inventory is sold. For the years ended December 31, 2024, 2023 and 2022, the Company recognized a reduction in cost of goods sold of $9.3 million, $6.7 million and $4.6 million, respectively, related to manufacturer floor plan assistance.

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Activity related to floor plan facilities associated with new vehicles is as follows:(in thousands)20242023Obligations outstanding at the beginning of the year$128,929 $69,190 Additions733,304 646,083 Settlements(728,782)(586,344)Obligations outstanding at the end of the year$133,451 $128,929 

6.    INVENTORIES AND CONTRACTS IN PROGRESS

Inventories and contracts in progress consist of the following:As of December 31(in thousands)20242023Raw materials$46,058 $63,884 Work-in-process12,685 15,387 Finished goods234,344 215,283 Contracts in progress2,721 2,657  $295,808 $297,211 

7.    PROPERTY, PLANT AND EQUIPMENT

Property, plant and equipment consist of the following:As of December 31(in thousands)20242023Land$100,274 $98,332 Buildings248,978 238,776 Machinery, equipment and fixtures533,781 521,773 Leasehold improvements185,674 225,004 Construction in progress30,864 36,217 1,099,571 1,120,102 Less: accumulated depreciation(550,207)(559,788)$549,364 $560,314 Depreciation expense was $87.0 million, $