Capital Stock, Stock Awards and Stock Options (Tables)

12 Months Ended

Dec. 31, 2019

Capital Stock, Stock Awards, and Stock Options [Abstract]

Activity related to stock awards under the 2012 incentive compensation plan for the year ended December 31, 2019 was as follows:



	Number of Shares		Average Grant-Date Fair Value
Beginning of year, unvested	32,200		$	747.18
Awarded	16,802		639.98
Vested	(15,987	)	898.85
Forfeited	(3,875	)	879.98
End of Year, unvested	29,140		584.50

Activity Related to Stock Options

Activity related to options outstanding for the year ended December 31, 2019 was as follows:



	Number of Shares		Average Option Price
Beginning of year	184,932		$	566.55
Granted	—		—
Exercised	(1,743	)	276.18
Expired or forfeited	—		—
End of Year	183,189		569.31

Information related to stock options outstanding and exercisable at December 31, 2019, is as follows:



	Options Outstanding				Options Exercisable
Range of Exercise Prices	Shares Outstanding at 12/31/2019	Weighted Average Remaining Contractual Life (years)	Weighted Average Exercise Price		Shares Exercisable at 12/31/2019	Weighted Average Remaining Contractual Life (years)	Weighted Average Exercise Price
$244	1,931	2.9	$	243.85	1,931	2.9	$	243.85
325	77,258	1.1	325.26		77,258	1.1	325.26
719	77,258	4.8	719.15		64,381	4.8	719.15
805-872	26,742	6.0	865.02		17,158	5.9	865.77
	183,189	3.4	569.31		160,728	3.2	539.76

Fair Value of Options Assumptions

The fair value of options at date of grant was estimated using the Black-Scholes method utilizing the following assumptions:



	2017
Expected life (years)	8
Interest rate	2.28%
Volatility	26.93%
Dividend yield	0.85%

Summary of Earnings Per Share, Basic and Diluted

The following reflects the Company’s net income and share data used in the basic and diluted earnings per share computations using the two-class method:



	Year Ended December 31
(in thousands, except per share amounts)	2019			2018			2017
Numerator:
Numerator for basic earnings per share:
Net income attributable to Graham Holdings Company common stockholders	$	327,855		$	271,206		$	302,044
Less: Dividends paid–common stock outstanding and unvested restricted shares	(29,553		)	(28,617		)	(28,329		)
Undistributed earnings	298,302			242,589			273,715
Percent allocated to common stockholders	99.45		%	99.39		%	99.06		%
	296,665			241,115			271,150
Add: Dividends paid–common stock outstanding	29,387			28,423			28,060
Numerator for basic earnings per share	326,052			269,538			299,210
Add: Additional undistributed earnings due to dilutive stock options	13			10			17
Numerator for diluted earnings per share	$	326,065		$	269,548		$	299,227
Denominator:
Denominator for basic earnings per share:
Weighted average shares outstanding	5,285			5,333			5,516
Add: Effect of dilutive stock options	42			37			36
Denominator for diluted earnings per share	5,327			5,370			5,552
Graham Holdings Company Common Stockholders:
Basic earnings per share	$	61.70		$	50.55		$	54.24
Diluted earnings per share	$	61.21		$	50.20		$	53.89

Antidilutive Weighted Average Restricted Stock and Options

Diluted earnings per share excludes the following weighted average potential common shares, as the effect would be antidilutive, as computed under the treasury stock method:



	Year Ended December 31
(in thousands)	2019	2018	2017
Weighted average restricted stock	12	23	30