Washington Post 2009 Annual Report Download - page 77

guidance requires consolidated net income to be reported at
amounts that include the amounts attributable to both the parent
company and the noncontrolling interest. This guidance also
requires disclosure, on the face of the consolidated financial
statements, of the amounts of consolidated net income attributable
to the parent and to the noncontrolling interest. The Company
adopted the guidance at the beginning of fiscal year 2009 and
reclassified $17.4 million from other liabilities to redeemable
noncontrolling interest outside permanent equity and $0.9 million of
noncontrolling interest from other liabilities to a separate component
of shareholders equity in our consolidated balance sheet as of
December 28, 2008. Previously, the Company presented minority
interest in “Other income (expense)” in the consolidated statements
of income. The consolidated statements of income for fiscal years
2008 and 2007 were adjusted to reflect 100% of the results of
subsidiaries not wholly owned. The “net income” for fiscal years
2008 and 2007 were adjusted to remove the noncontrolling
interest of $74,000 and $358,000, respectively, to arrive at “Net
income attributable to The Washington Post Company.”
In June 2008, the FASB issued new guidance for the calculation
of earnings per share. The guidance clarifies that unvested share-
based payment awards that contain nonforfeitable rights to
dividends or dividend equivalents (whether paid or unpaid) are
participating securities and are to be included in the computation
of earnings per share under the two-class method. The Company
adopted this guidance at the beginning of fiscal year 2009 and
applied its provisions retrospectively to all earnings per share data
presented in the Company’s consolidated financial statements. The
implementation of this guidance did not have a material impact on
the earnings per share data of the Company.
In December 2008, the FASB issued new guidance on an
employer’s disclosures about plan assets of a defined benefit pension
or other postretirement plan. The additional disclosure requirements
under this guidance include expanded disclosures about an entity’s
investment policies and strategies, the categories of plan assets,
concentrations of credit risk and fair value measurements of plan
assets. This new guidance is effective for fiscal years ending after
December 15, 2009, and does not require comparative information
for earlier periods presented. See Note L for additional disclosures
following the implementation of this new guidance.
In May 2009, the FASB issued new guidance that established
general standards of accounting for and disclosure of events that
occur after the balance sheet date but before financial statements are
issued or available to be issued. The new guidance is effective
prospectively for interim and annual periods ending after June 15,
2009. The implementation of this guidance had no impact on the
consolidated financial statements as the Company already followed
a similar approach prior to the implementation of this guidance.
In October 2009, the FASB issued new guidance that modifies the
fair value requirement of multiple element revenue arrangements.
The new guidance allows the use of the “best estimate of selling
price” in addition to vendor-specific objective evidence (“VSOE”)
and third-party evidence (“TPE”) for determining the selling price of a
deliverable. A vendor is now required to use its best estimate of the
selling price when VSOE or TPE of the selling price cannot be
determined. In addition, the residual method of allocating
arrangement consideration is no longer permitted. The guidance
requires expanded qualitative and quantitative disclosures and is
effective for revenue arrangements entered into or materially
modified in fiscal years beginning on or after June 15, 2010.
Early application is permitted. The Company is in the process of
evaluating the impact of this new guidance on its consolidated
financial statements.
C. ACCOUNTS RECEIVABLE AND ACCOUNTS PAYABLE AND
ACCRUED LIABILITIES
Accounts receivable at January 3, 2010 and December 28, 2008
consist of the following:
(in thousands) 2009 2008
Trade accounts receivable, less estimated
returns, doubtful accounts and allowances
of $106,781 and $104,653 ......... $415,688 $466,702
Other accounts receivable .............. 14,981 12,659
$430,669 $479,361
Accounts payable and accrued liabilities at January 3, 2010 and
December 28, 2008 consist of the following:
(in thousands) 2009 2008
Accounts payable and accrued liabilities . . . $374,650 $358,623
Accrued compensation and related
benefits .......................... 178,694 175,429
Due to affiliates (newsprint) .............. 2,134 10,868
$555,478 $544,920
Cash overdrafts of $30.4 million and $25.0 million are included in
accounts payable and accrued expenses at January 3, 2010 and
December 28, 2008, respectively.
The changes in allowance for doubtful accounts and returns and
allowance for advertising rate adjustments and discounts during
2009, 2008 and 2007 were as follows:
(in thousands)
Balance at
Beginning
of Period
Additions –
Charged to
Costs and
Expenses Deductions
Balance
at
End of
Period
Year Ended January 3, 2010
Allowance for
doubtful accounts
and returns ...... $ 95,425 $ 168,455 $ (165,594) $ 98,286
Allowance for
advertising rate
adjustments and
discounts ........ 9,228 24,208 (24,941) 8,495
$104,653 $ 192,663 $ (190,535) $ 106,781
Year Ended December 28, 2008
Allowance for doubtful
accounts and
returns .......... $77,585 $155,288 $(137,448) $ 95,425
Allowance for
advertising rate
adjustments and
discounts ........ 4,318 30,751 (25,841) 9,228
$ 81,903 $186,039 $(163,289) $104,653
Year Ended December 30, 2007
Allowance for doubtful
accounts and
returns .......... $80,362 $135,936 $(138,713) $ 77,585
Allowance for
advertising rate
adjustments and
discounts ........ 5,865 13,492 (15,039) 4,318
$ 86,227 $149,428 $(153,752) $ 81,903
2009 FORM 10-K 63