Washington Post 1999 Annual Report Download - page 19

Contributions to multi-employer pension plans, which are
generally based on hours worked, amounted to $2,300,000 in 1999
and 1998, and $2,000,000 in 1997.
The Company recorded expense associated with retirement
benefits provided under incentive savings plans (primarily 401k
plans) of approximately $13,300,000 in 1999 and 1998, and
$12,400,000 in 1997.
J. LEASE AND OTHER COMMITMENTS
The Company leases real property under operating agreements.
Many of the leases contain renewal options and escalation clauses
that require payments of additional rent to the extent of increases
in the related operating costs.
At January 2, 2000, future minimum rental payments under non-
cancelable operating leases approximate the following (in thousands):
2000 ...........................................................$31,300
2001 ............................................................ 26,600
2002 ............................................................ 23,000
2003 ........................................................... 19,100
2004 ........................................................... 16,500
Thereafter ....................................................... 50,600
$ 167,100
Minimum payments have not been reduced by minimum sublease
rentals of $1,900,000 due in the future under noncancelable subleases.
Rent expense under operating leases included in operating costs
and expenses was approximately $33,600,000, $31,800,000 and
$27,800,000 in 1999, 1998 and 1997, respectively. Sublease
income was approximately $433,000, $500,000 and $400,000 in
1999, 1998 and 1997, respectively.
The Company’s broadcast subsidiaries are parties to certain agree-
ments that commit them to purchase programming to be produced in
future years. At January 2, 2000, such commitments amounted to
approximately $47,000,000. If such programs are not produced, the
Company’s commitment would expire without obligation.
K. ACQUI SITIONS, EXCHANGES AND DISPOSITIONS
Acquisitions. The Company completed acquisitions totaling approxi-
mately $90,500,000 in 1999, $320,600,000 in 1998 and
$118,900,000 in 1997. All of these acquisitions were accounted for
using the purchase method and, accordingly, the assets and liabili-
ties of the companies acquired have been recorded at their estimated
fair values at the date of acquisition.
During 1999, the Company acquired cable systems serving
10,300 subscribers in North Dakota, Oklahoma and Arizona (April
and August 1999 for $18,300,000); two Certified Financial Analyst
test preparation companies (November and December 1999 for
$16,000,000) and a travel guide magazine (in December 1999 for
$10,200,000). In addition, the Company acquired various other
smaller businesses throughout 1999 for $46,000,000 (principally
consisting of educational services companies).
Acquisitions in 1998 included an educational services company
that provides English language study programs (in January 1998
for $16,100,000); a 36,000 subscriber cable system serving
Anniston, Alabama (in June 1998 for $66,500,000); cable systems
serving 72,000 subscribers in Mississippi, Louisiana, Texas and
Oklahoma (in July 1998 for $130,100,000); and a publisher and
provider of licensing training for securities, insurance and real
estate professionals (in July 1998 for $35,200,000). In addition,
the Company acquired various other smaller businesses throughout
1998 for $72,700,000 (principally consisting of educational and
career service companies and small cable systems).
In 1997, the Company acquired cable systems serving approxi-
mately 16,000 subscribers in Cleveland, Mississippi (in February
1997 for $23,900,000), the publishing rights to two computer serv-
ice industry trade periodicals and the rights to conduct two computer
industry trade shows (in December 1997 for $84,500,000), and
various other smaller businesses throughout 1997 for $10,500,000.
The results of operations for each of the businesses acquired are
included in the Consolidated Statements of Income from their respective
dates of acquisition. Pro forma results of operations for 1999, 1998
and 1997, assuming the acquisitions occurred at the beginning of 1997,
are not materially different from reported results of operations.
Exchanges. In June 1997, the Company exchanged the assets of
certain cable systems with Tele-Communications, Inc. This trade
resulted in an increase of about 21,000 subscribers for the Company.
In September 1997, the Company completed a transaction
with Meredith Corporation whereby the Company exchanged the
assets of WFSB-TV, the CBS affiliate in Hartford, Connecticut,
and approximately $60,000,000 for the assets of WCPX-TV, the
CBS affiliate in Orlando, Florida.
The assets obtained in these transactions were recorded at
the carrying value of the assets exchanged plus cash consideration.
No gain or loss resulted from these exchange transactions.
50 THE WASHINGTON POST COMPANY