Company: GHC
Filing Date: 2025-04-30
Form Type: 10-Q
Source: 0000104889-25-000032
Chunk: 12

Company: Graham Holdings Co
Filing Date: 2025-04-30
Form: 10-Q
Item: Part I, Item 1
Chunk 12
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215,434 231,322 $611,913 $712,505 Cash overdrafts of $0.5 million are included in accounts payable as of March 31, 2025.The Company finances new, used and service loaner vehicle inventory through standardized floor plan facilities with Truist Bank and Toyota Motor Credit Corporation and Ford Motor Credit Company. At March 31, 2025, the floor plan facilities bore interest at variable rates that are based on Secured Overnight Financing Rate (SOFR) and prime-based interest rates. The weighted average interest rate for the floor plan facilities was 6.3% and 6.9% for the three months ended March 31, 2025 and 2024, respectively. The Company incurred floor plan interest expense of $2.2 million and $3.0 million for the three months ended March 31, 2025 and 2024, respectively, which is included in interest expense in the Condensed Consolidated Statements of Operations. 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 March 31, 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 March 31, 2025 and 2024, the Company recognized a reduction in cost of goods sold of $2.0 million and $2.2 million, respectively, related to manufacturer floor plan assistance.As of March 31, 2025 and December 31, 2024, the Company had $100.3 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 ofMarch 31,2025December 31,2024(in thousands)Raw materials$44,260