Washington Post 2006 Annual Report Download - page 73

During 2006, 2005 and 2004, the Company invested $8.4 mil- Deferred income taxes at December 31, 2006 and January 1,
lion, $8.7 million and $0.2 million, respectively, in companies 2006 consist of the following (in thousands):
constituting cost method investments and recorded charges of
2006 2005
$0.8 million, $1.5 million and $0.7 million, respectively, to write-
down cost method investments to estimated fair value. Charges Accrued postretirement benefitsÏÏÏÏÏÏÏÏÏ $ 33,640 $ 63,129
recorded to write-down cost method investments are included in Other benefit obligationsÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏ 129,909 104,105
Accounts receivableÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏ 24,839 21,762
""Other income (expense), net'' in the Consolidated Statements of
State income tax loss carryforwardsÏÏÏÏÏ 12,002 9,185
Income.
Affiliate operations ÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏ Ì3,135
Cash and Cash Equivalents. As of December 31, 2006, the Other ÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏ 27,140 20,335
Company had commercial paper and money market investments of Deferred tax asset ÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏ 227,530 221,651
Property, plant and equipmentÏÏÏÏÏÏÏÏÏÏ 132,095 153,445
$142.9 million that were classified as ""Cash and cash
Prepaid pension cost ÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏ 392,253 240,495
equivalents'' in the Company's Consolidated Balance Sheets. There
Unrealized gain on available-for-sale
were $59.2 million of commercial paper investments outstanding at
securitiesÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏ 56,419 37,422
January 1, 2006. Affiliate operations ÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏ 2,188 Ì
Goodwill and other intangibles ÏÏÏÏÏÏÏÏÏ 195,126 175,517
D. INCOME TAXES Deferred tax liabilityÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏ 778,081 606,879
Deferred income taxesÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏ $550,551 $385,228
The provision for income taxes consists of the following (in
thousands):
Deferred U.S. and state income taxes have been recorded for
Current Deferred Total undistributed earnings of investments in foreign subsidiaries to the
extent taxable dividend income would be recognized if such earn-
2006
ings were distributed. Deferred income taxes recorded for undistrib-
U.S. Federal ÏÏÏ $193,261 $(19,681) $173,580
Foreign ÏÏÏÏÏÏÏÏ 6,949 (1,088) 5,861 uted earnings of investments in foreign subsidiaries are net of
State and local 27,624 (17,465) 10,159 foreign tax credits estimated to be available.
$227,834 $(38,234) $189,600
Deferred U.S. and state income taxes have not been recorded for
2005 the full book value and tax basis differences related to investments
U.S. Federal ÏÏÏ $ 132,650 $ 22,591 $ 155,241 in foreign subsidiaries because such investments are expected to be
Foreign ÏÏÏÏÏÏÏÏ 4,849 29 4,878
indefinitely held. The book value exceeded the tax basis of invest-
State and local 18,504 6,677 25,181
ments in foreign subsidiaries by approximately $43.3 million and
$ 156,003 $ 29,297 $ 185,300
$35.2 million at December 31, 2006 and January 1, 2006,
2004
respectively. If the investments in foreign subsidiaries were held for
U.S. Federal ÏÏÏ $ 138,429 $ 35,544 $ 173,973
sale, instead of indefinitely held, then additional U.S. and state
Foreign ÏÏÏÏÏÏÏÏ 4,751 (361) 4,390
deferred income tax liabilities, net of foreign tax credits estimated to
State and local 22,199 9,138 31,337
$ 165,379 $ 44,321 $ 209,700 be available on undistributed earnings, of approximately $10.2 mil-
lion and $9.8 million would have been recorded at December 31,
In addition to the income tax provision presented above, in 2006, 2006 and January 1, 2006, respectively.
the Company recorded a federal and state income tax benefit of
The Company has approximately $242 million in state income tax
$3.1 million on the charge recorded as a cumulative effect of a
loss carryforwards. If unutilized, state income tax loss carryfor-
change in accounting principle for Kaplan equity awards in connec-
wards will start to expire approximately as follows (in millions):
tion with the adoption of SFAS 123R.
2007 ÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏ $ 5.7
The provision for income taxes exceeds the amount of income tax
2008 ÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏ 2.8
determined by applying the U.S. Federal statutory rate of 35% to
2009 ÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏ 12.1
income before taxes as a result of the following (in thousands):
2010 ÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏ 2.3
2006 2005 2004 2011 ÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏ 9.9
2012 to 2024ÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏ 209.2
U.S. Federal statutory taxes ÏÏÏ $181,697 $174,875 $189,851 Total ÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏ $242.0
State and local taxes, net of
U.S. Federal income tax
In January 2007, the Internal Revenue Service (IRS) completed
benefit ÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏ 6,604 16,368 20,369
Tax provided on foreign their examinations of the Company's consolidated federal corpo-
subsidiary earnings at less rate income tax returns through 2004.
than the expected
U.S. Federal statutory tax The Company is required to adopt FASB Interpretation No. 48
rateÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏ 190 (6,704) (1,373) (FIN 48), ""Accounting for Uncertainty in Income Taxes Ì an
Other, net ÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏ 1,109 761 853 Interpretation of FASB Statement No. 109,'' in the first quarter of
Provision for income taxesÏÏÏÏÏ $189,600 $185,300 $209,700 2007. FIN 48 prescribes a comprehensive model of how a
2006 FORM 10-K 57