(Loss) Earnings Per Share

6 Months Ended

Jun. 30, 2022

Earnings Per Share [Abstract]

(Loss) Earnings Per Share

(LOSS) EARNINGS PER SHAREThe Company’s unvested restricted stock awards contain nonforfeitable rights to dividends and, therefore, are considered participating securities for purposes of computing earnings per share pursuant to the two-class method. The diluted earnings per share computed under the two-class method is lower than the diluted earnings per share computed under the treasury stock method, resulting in the presentation of the lower amount in diluted earnings per share. The computation of the earnings per share under the two-class method excludes the income attributable to the unvested restricted stock awards from the numerator and excludes the dilutive impact of those underlying shares from the denominator.

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

	Three Months Ended   June 30						Six Months Ended   June 30
(in thousands, except per share amounts)	2022			2021			2022			2021
Numerator:
Numerator for basic (loss) earnings per share:
Net (loss) income attributable to Graham Holdings Company common stockholders	$	(67,485)		$	115,358		$	28,139		$	227,808
Less: Dividends-common stock outstanding and unvested restricted shares	(7,656)			(7,553)			(23,153)			(22,659)
Undistributed (loss) earnings	(75,141)			107,805			4,986			205,149
Percent allocated to common stockholders (1)	100.00		%	99.34		%	99.40		%	99.34		%
	(75,141)			107,089			4,956			203,786
Add: Dividends-common stock outstanding	7,610			7,503			23,016			22,508
Numerator for basic (loss) earnings per share	$	(67,531)		$	114,592		$	27,972		$	226,294
Add: Additional undistributed earnings due to dilutive stock options	—			2			—			4
Numerator for diluted (loss) earnings per share	$	(67,531)		$	114,594		$	27,972		$	226,298
Denominator:
Denominator for basic (loss) earnings per share:
Weighted average shares outstanding	4,842			4,968			4,857			4,968
Add: Effect of dilutive stock options	—			17			13			13
Denominator for diluted (loss) earnings per share	4,842			4,985			4,870			4,981
Graham Holdings Company Common Stockholders:
Basic (loss) earnings per share	$	(13.95)		$	23.07		$	5.76		$	45.55
Diluted (loss) earnings per share	$	(13.95)		$	22.99		$	5.74		$	45.43

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(Loss) earnings per share amounts may not recalculate due to rounding.

(1)    Percent of undistributed losses allocated to common stockholders is 100% in the three months ended June 30, 2022 as participating securities are not contractually obligated to share in losses.

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

	Three Months Ended   June 30		Six Months Ended   June 30
(in thousands)	2022	2021	2022	2021
Weighted average restricted stock	17	13	17	10
Weighted average stock options	13	—	—	—

The diluted (loss) earnings per share amounts for the three and six months ended June 30, 2022 and June 30, 2021 exclude the effects of 105,000 and 104,000 stock options and contingently issuable shares outstanding, respectively, as their inclusion would have been antidilutive due to a market condition.

In the three and six months ended June 30, 2022, the Company declared regular dividends totaling $1.58 and $4.74 per common share, respectively. In the three and six months ended June 30, 2021, the Company declared regular dividends totaling $1.51 and $4.53 per common share, respectively.