Washington Post 2006 Annual Report Download - page 47

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Foreign Exchange Rate Risk
The Company is exposed to foreign exchange rate risk due to its Newsweek and Kaplan international operations, and the
primary exposure relates to the exchange rate between the British pound and U.S. dollar. Translation gains and losses
affecting the Consolidated Statements of Income have historically not been significant and represented less than 2.5% of
net income during each of the Company's last three fiscal years. If the value of the British pound relative to the U.S. dollar
had been 10% lower than the values that prevailed during 2006, the Company's reported net income for fiscal 2006
would have been decreased by approximately 2%. Conversely, if such value had been 10% greater, the Company's
reported net income for fiscal 2006 would have been increased by approximately 2%.
Item 8. Financial Statements and Supplementary Data.
See the Company's Consolidated Financial Statements at December 31, 2006, and for the periods then ended, together
with the report of PricewaterhouseCoopers LLP thereon and the information contained in Note O to said Consolidated
Financial Statements titled ""Summary of Quarterly Operating Results and Comprehensive Income (Unaudited),'' which are
included in this Annual Report on Form 10-K and listed in the index to financial information on page 35 hereof.
Item 9. Changes in and Disagreements With Accountants on Accounting and Financial
Disclosure.
Not applicable.
Item 9A. Controls and Procedures.
Disclosure Controls and Procedures
An evaluation was performed by the Company's management, with the participation of the Company's Chief Executive
Officer (the Company's principal executive officer) and the Company's Vice PresidentÓFinance (the Company's principal
financial officer), of the effectiveness of the Company's disclosure controls and procedures (as defined in Exchange Act
Rules 13a-15(e) and 15d-15(e)), as of December 31, 2006. Based on that evaluation, the Company's Chief
Executive Officer and Vice PresidentÓFinance have concluded that the Company's disclosure controls and procedures, as
designed and implemented, are effective in ensuring that information required to be disclosed by the Company in the
reports that it files or submits under the Exchange Act is recorded, processed, summarized and reported, within the time
periods specified in the Securities and Exchange Commission's rules and forms and is accumulated and communicated to
management, including the Chief Executive Officer and Vice PresidentÓFinance, in a manner that allows timely decisions
regarding required disclosure.
Management's Report on Internal Control Over Financial Reporting
The Company's management is responsible for establishing and maintaining adequate internal control over financial
reporting (as defined in Exchange Act Rules 13a-15(f) and 15d-15(f)). The Company's internal control over financial
reporting is a process designed to provide reasonable assurance regarding the reliability of financial reporting and the
preparation of financial statements for external purposes in accordance with accounting principles generally accepted in
the United States of America.
Because of its inherent limitations, internal control over financial reporting may not prevent or detect misstatements. Also,
projections of any evaluation of effectiveness to future periods are subject to the risk that controls may become inadequate
because of changes in conditions, or that the degree of compliance with the policies or procedures may deteriorate.
Our management assessed the effectiveness of our internal control over financial reporting as of December 31, 2006. In
making this assessment, our management used the criteria set forth by the Committee of Sponsoring Organizations of the
Treadway Commission (""COSO'') in
Internal ControlÓIntegrated Framework.
Our management has concluded that, as of
December 31, 2006, our internal control over financial reporting is effective based on these criteria. Our assessment of
the effectiveness of our internal control over financial reporting as of December 31, 2006 has been audited by
PricewaterhouseCoopers LLP, an independent registered public accounting firm, as stated in their report included herein.
2006 FORM 10-K 31