Washington Post 2009 Annual Report Download - page 93

In 2007, Kaplan announced restructuring plans at its professional
domestic training businesses that involved product changes and
decentralization of certain operations, in addition to employee
terminations. These businesses are now part of Kaplan’s Test
Preparation division. A charge of $6.0 million was recorded in the
fourth quarter of 2007 related to the write-off of an integrated
software product under development and severance costs in
connection with the restructuring. In the fourth quarter of 2008,
Kaplan expanded this restructuring to include additional operations.
Total restructuring-related expenses of $8.3 million and $11.0
million were recorded in 2009 and 2008, respectively, related to
lease termination, accelerated depreciation of fixed assets and
severance costs.
Cable television operations consist of cable systems offering video,
Internet, phone and other services to subscribers in midwestern,
western and southern states. The principal source of revenue is
monthly subscription fees charged for services.
Newspaper publishing includes the publication of newspapers in
the Washington, DC, area and Everett, WA; newsprint ware-
housing and recycling facilities; and the Company’s electronic
media publishing business (primarily washingtonpost.com).
The magazine publishing division consists of the publication of a
weekly newsmagazine, Newsweek, which has one domestic and
three English-language international editions (and, in conjunction
with others, publishes seven foreign-language editions around the
world) and certain online media publishing businesses
(newsweek.com). In December 2009, Newsweek sold its
Newsweek Budget Travel magazine and realized a gain on the
transaction. Budget Travel revenues for 2009, 2008 and 2007
were $18.7 million, $23.5 million and $22.7 million, respectively.
Including the gain on the sale transaction, Budget Travel incurred
operating losses of $1.2 million in 2009, operating losses of $0.7
million in 2008 and operating income of $2.3 million in 2007.
Revenues from both newspaper and magazine publishing
operations are derived from advertising and, to a lesser extent, from
circulation.
Television broadcasting operations are conducted through six VHF
television stations serving the Detroit, Houston, Miami, San Antonio,
Orlando and Jacksonville television markets. All stations are network-
affiliated (except for WJXT in Jacksonville), with revenues derived
primarily from sales of advertising time.
Other businesses and corporate office includes the expenses
associated with the Company’s corporate office and the operating
results of Avenue100 Media Solutions (formerly CourseAdvisor).
The Company’s foreign revenues in 2009, 2008 and 2007
totaled approximately $547 million, $582 million and $488
million, respectively, principally from Kaplan’s foreign operations
and the publication of the international editions of Newsweek. The
Company’s long-lived assets in foreign countries (excluding goodwill
and other intangible assets), principally in the United Kingdom,
totaled approximately $58 million at January 3, 2010 and
$56 million at December 28, 2008.
In computing income from operations by segment, the effects of
equity in (losses) earnings of affiliates, interest income, interest
expense, other non-operating income and expense items and
income taxes are not included.
Identifiable assets by segment are those assets used in the
Company’s operations in each business segment. Investments in
marketable equity securities are discussed in Note E.
2009 FORM 10-K 79