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2012
ANNUAL REPORT

Table of contents

  • Page 1
    2012 ANNUAL REPORT

  • Page 2
    REVENUE BY PRINCIPAL OPERATIONS n EDUCATION 55% n CABLE TELEVISION 20% n NEWSPAPER PUBLISHING 14% n TELEVISION BROADCASTING 10% n OTHER BUSINESSES 1%

  • Page 3
    ... amounts) 2012 2011 Change Operating revenues Income from operations Net income attributable to common shares Diluted earnings per common share from continuing operations Diluted earnings per common share Dividends per common share Common stockholders' equity per share Diluted average number of...

  • Page 4
    ... became CEO in 1994 and has seen the cable company through several strategic transitions. The current reality: ever-rising charges from programmers and, especially, from sports networks have taken most of the profit out of cable's original business, delivering video service to our small-city markets...

  • Page 5
    ... I said when accountants mandated a huge positive (but non-cash) gain on the sale of a couple of cable systems: in valuing the company, I'd ignore it. Kaplan's international businesses produced a pleasant surprise in 2012. Kaplan International recorded close to $50 million of operating income - and...

  • Page 6
    ... a job or a raise, you likely won't seek one.) 2. Absurd overregulation of the sector by the U.S. government. 3. Our own costly Kaplan Commitment program, unique in higher education, to offer students weeks of enrollment before any tuition payment is due. The future of The Washington Post Company is...

  • Page 7
    ... other important "acquisition" in 2012, repurchasing 301,231 shares of our own stock. Having gone public with 20 million shares outstanding, we now have 7,427,501 shares outstanding. My 2011 letter contained excited words about Washington Post Social Reader on Facebook. More than 30 million people...

  • Page 8

  • Page 9
    ... St., N.W., Washington, D.C. (Address of principal executive offices) 20071 (Zip Code) Registrant's Telephone Number, Including Area Code: (202) 334-6000 Securities Registered Pursuant to Section 12(b) of the Act: Title of each class Name of each exchange on which registered Class B Common Stock...

  • Page 10
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  • Page 11
    THE WASHINGTON POST COMPANY 2012 FORM 10-K Item 1. Business ...Education ...Cable Television Operations ...Newspaper Publishing ...Television Broadcasting ...Other Activities ...Production and Raw Materials ...Competition ...Executive Officers ...Employees ...Forward-Looking Statements ...Available ...

  • Page 12
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  • Page 13
    ... segments: Kaplan Higher Education, Kaplan Test Preparation and Kaplan International. A fourth operating segment, Kaplan Ventures, was reclassified as discontinued operations following the sale of its last remaining operating business in August 2012. As a result, Kaplan's operating results exclude...

  • Page 14
    ... Science and Public and Environmental Policy • Arts and Sciences • Business Management • Criminal Justice • Health Sciences • Higher Education Studies • Information Systems and Technology • Legal and Paralegal Studies • Nursing • Teacher Education Kaplan University's and KHE...

  • Page 15
    ... of the institution's receipt of Title IV funds, requiring the submission of a letter of credit, denying or refusing to consider the school's application for renewal of its certification to participate in the Title IV programs or for approval to add a new campus or educational program, and referring...

  • Page 16
    ...these resources will enable Kaplan's schools to maintain cohort default rates below the thresholds for sanctions. In the fourth quarter of 2010, most programs at Kaplan University and KHE Campuses implemented the Kaplan Commitment. Under this program, students may enroll in classes for several weeks...

  • Page 17
    ... section below); • Limiting agreements between related institutions; • Defining a "credit hour"; • Administration of ability-to-benefit examinations; • Student attendance requirements; • Proof of high school graduation; • Verification of information included on student aid applications...

  • Page 18
    ... may place conditions on the institution's participation in the Title IV programs and may require the institution to submit to the DOE a letter of credit in an amount of at least 10% to 50% of the institution's annual Title IV participation for its most recent fiscal 6 THE WASHINGTON POST COMPANY

  • Page 19
    ... General any credible information indicating that any student, parent, employee, third-party servicer or other agent of the institution has engaged in any fraud or other illegal conduct involving Title IV programs; • Submit in a timely way all required reports and financial statements; and • Not...

  • Page 20
    ... to obtain the required approvals for distance-education programs, then Kaplan students residing in the state for which approval was not obtained may be unable to receive Title IV funds, which could have a material adverse effect on Kaplan's business and operations. Kaplan's schools are subject to...

  • Page 21
    ... review in September 2012. In November 2012, the DOE issued a Program Review Report containing one finding and requesting that Kaplan University update its verification policy and report on certain students whose verifications were not properly coded. In January 2013, Kaplan submitted a response to...

  • Page 22
    ... the date the school determines that the student has withdrawn. Under DOE regulations, failure to make timely returns of Title IV program funds for 5% or more of students sampled in a school's annual compliance audit could result in a requirement that the school post a letter of credit in an amount...

  • Page 23
    ... School. In 2012, Kaplan UK provided courses to approximately 66,000 students, of whom 49,000 were dedicated to accounting and financial services coursework. Kaplan UK is headquartered in London, England, and has 27 training centers located throughout the U.K. The KIC business comprises a university...

  • Page 24
    ...of 2012. Educational Oversight requires a current and satisfactory full inspection, audit or review by the appropriate academic standards body. Failure to comply with these new rules has the potential to adversely impact the number of international students studying at Kaplan UK. For Kaplan UK, both...

  • Page 25
    ... to the students. Kaplan International also includes the Kaplan Global Solutions business unit, which continues to develop partnerships with colleges, universities and non-profit corporations and foundations. Kaplan Global Solutions, through its Colloquy business, enables its university partners to...

  • Page 26
    ... and perchannel premium program services, digital video, Internet and digital voice services-currently are exempt from regulation. "Must-Carry" and Retransmission Consent. U.S. Federal law provides that a commercial television broadcast station may, subject to certain limitations, insist on carriage...

  • Page 27
    ... market for the delivery of multichannel video programming services, such as partnering with DBS operators or obtaining local franchise agreements. Increased competition from telephone companies that provide competing services could have a material effect on Cable ONE's business. 2012 FORM 10-K 15

  • Page 28
    ... on the Internet may result in less demand for the Company's cable service offering. Some providers of cable service are marketing their own version of "over-the-top" video programming, thus enabling their subscribers to access cable programming outside of their home or business. The Company cannot...

  • Page 29
    ... proceeding to consider whether it should require all multichannel video program distributors, which include cable operators, to develop and provide a new, universal set-top box solution that allows access to both online and traditional video. The Company cannot predict whether or the extent...

  • Page 30
    ... Act of 1934, as amended (the Communications Act), nor is it subject to state or local government regulation. In response to the U.S. Supreme Court's decision, the FCC ruled that a telephone company's offering of digital subscriber line (DSL) Internet access service and a mobile wireless company...

  • Page 31
    ... its operations and business. Intercarrier Compensation. The order and new rules adopted by the FCC in 2011 in connection with universal service reform also addressed intercarrier compensation and specified that "VoIP-PSTN traffic," that is, traffic exchanged over public switched telephone network...

  • Page 32
    ... newspapers and websites. The Washington Post WP Company LLC (WP Company), a subsidiary of the Company, publishes The Washington Post (the Post) and the Internet site, washingtonpost.com. The Post is a morning daily and Sunday newspaper primarily distributed by home delivery in the Washington, DC...

  • Page 33
    ... and ticket sales; The Capitol Deal, an Internet site that provides time-limited reduced-price offers for restaurants, travel destinations, services and entertainment events and shares revenue generated by the offers; and Service Alley, a website that offers a directory of home service providers for...

  • Page 34
    ... (Express Publications), another subsidiary of the Company, publishes Express, a weekday tabloid newspaper, which is distributed free of charge using hawkers and news boxes near Metro stations and in other locations in Washington, DC, and nearby suburbs with heavy daytime sidewalk traffic. A typical...

  • Page 35
    ... newspaper that is distributed free of charge in northern Virginia, suburban Maryland and Washington, DC, using sidewalk news boxes and retail locations that provide space for distribution. El Tiempo Latino provides a mix of local, national and international news together with sports and community...

  • Page 36
    ... for air time; annual or biannual events, such as sporting events and political elections; and broader economic trends. Regulation of Broadcasting and Related Matters PNS's television broadcasting operations are subject to the jurisdiction of the FCC under the Communications Act. The FCC assigns...

  • Page 37
    ... also sought comment on limiting or eliminating the network nonduplication and syndicated exclusivity rules. Broadcasters opposed many of the proposed rule changes on which the FCC sought comment, asserting that they would be contrary to the Communications Act and the public interest. Changes to the...

  • Page 38
    ... to air a specified number of hours of programming intended to serve the educational and informational needs of children and to complete reports on a quarterly basis concerning children's programming. In addition, the FCC requires stations to limit the amount of advertising that appears during...

  • Page 39
    ... over the Internet, on emergency information accessibility and on commercial loudness could impose additional costs on the PNS stations that could affect PNS's operations. Political Advertising. The FCC regulates the sale of advertising by PNS's stations to candidates for public office and imposes...

  • Page 40
    ... VA. The Herald, the SCBJ and La Raza del Noroeste are produced at The Daily Herald Company's plant in Everett, WA. The Gazette Newspapers, Southern Maryland Newspapers, Express and the Fairfax County Times are printed at the commercial printing facilities owned by PNM. Six military papers, one free...

  • Page 41
    ... circulated newspapers), and from websites, television, radio, magazines and other advertising media, including direct-mail advertising. Express similarly competes with various other advertising media in its service area, including both daily and weekly free-distribution newspapers. The Post...

  • Page 42
    ... and advertising revenues with television and radio stations, cable television systems and video services offered by telephone companies serving the same or nearby areas; with DBS services; and, to a lesser degree, with other media, such as newspapers and magazines. Cable television systems operate...

  • Page 43
    ...by the Company and referred to in Item 10 of this Annual Report on Form 10-K are each available on the Company's website; printed copies of such documents may be obtained by any stockholder upon written request to the Secretary of the Company at 1150 15th Street, NW, Washington, DC 20071. 2012 FORM...

  • Page 44
    ... Have a Material Adverse Effect on Kaplan's Business and Operations During the Company's 2012 fiscal year, funds provided under the student financial aid programs created under Title IV accounted for approximately $882 million of the revenues of the schools in KHE. Any legislative, regulatory or...

  • Page 45
    ..., Kaplan's higher education programs would become subject to gainful employment metrics. This could cause Kaplan to eliminate or limit enrollments in certain educational programs at some or all of its schools, and could have a materially adverse effect on its business and operations. 2012 FORM...

  • Page 46
    ... Has Materially Impacted Operating Results and Is Expected to Continue to Do So In the fourth quarter of 2010, KHE phased in a program called the Kaplan Commitment. Under this program, students of Kaplan University, Kaplan College and other KHE schools enroll in classes for several weeks and assess...

  • Page 47
    ... and grant degrees or diplomas in the state. Institutions that participate in Title IV programs must be legally authorized to operate in the state in which the institution is physically located. The loss of such authorization would preclude the campuses or online university from offering 2012 FORM...

  • Page 48
    ... at those state campus locations, or, in states that require it, for Kaplan University online, could have a material adverse effect on KHE's business and operations. Some states have sought to assert jurisdiction over online education institutions that offer education services to residents in the...

  • Page 49
    ... could damage Kaplan's reputation, reduce student demand for Kaplan programs, adversely impact its revenues and operating profit or result in increased regulatory scrutiny. • Changes in the Extent to Which Standardized Tests Are Used in the Admissions Process by Colleges or Graduate Schools Could...

  • Page 50
    ...Kaplan's operating results. • Changing Preferences of Readers or Viewers Away From Traditional Media Outlets The rates that the Company's print publishing and television broadcasting businesses can charge for advertising are directly related to the number of readers and viewers of its publications...

  • Page 51
    ... utilizing the intellectual property at issue and could have a material adverse effect on those businesses' operating results or prospects. • Failure to Comply With Privacy Laws or Regulations Could Have an Adverse Effect on the Company's Business Various federal, state and international laws and...

  • Page 52
    ... of eight properties: a 30,000-square-foot, six-story building located at 131 West 56th Street in New York City, which serves as an education center primarily for international students; a redeveloped 47,410-square-foot, four-story brick building in Lincoln, NE, which is used by Kaplan University...

  • Page 53
    ...small rental building adjacent to its plant. These properties are being marketed for sale. PNM owns a two-story combination office building and printing plant on a seven-acre plot in Laurel, MD. PNM also owns a one-story brick building in St. Mary's County, MD, used by editorial and sales staff, and...

  • Page 54
    ... in the appellate court. On October 21, 2010, Kaplan Higher Education Corporation received a subpoena from the office of the Florida Attorney General. The subpoena sought information pertaining to the online and on-campus schools operated by KHE in and outside of Florida. KHE has cooperated with the...

  • Page 55
    ... scores of job applicants seeking financial positions. In March 2011, the court granted in part the Company's motion to dismiss the complaint. On January 28, 2013, the court entered summary judgment in favor of Kaplan Higher Education Corporation and against the EEOC, terminating the case in its...

  • Page 56
    ... Strayer Education Inc. The Company is using a custom peer index of education companies because the Company is a diversified education and media company. Its largest business is Kaplan, Inc., a leading global provider of educational services to individuals, schools 44 THE WASHINGTON POST COMPANY

  • Page 57
    ... December 31, 2007, in the Company's Class B Common Stock, the Standard & Poor's 500 Stock Index, the Standard & Poor's 1500 Publishing Index and the custom peer group index of education companies. For purposes of this graph, it has been assumed that dividends were reinvested on the date paid in the...

  • Page 58
    ... Company's internal control over financial reporting during the quarter ended December 31, 2012, that has materially affected, or is reasonably likely to materially affect, the Company's internal control over financial reporting. Item 9B. Other Information. Not applicable. 46 THE WASHINGTON POST...

  • Page 59
    ... Related Persons, Promoters and Certain Control Persons" and "Controlled Company" in the definitive Proxy Statement for the Company's 2013 Annual Meeting of Stockholders is incorporated herein by reference thereto. Item 14. Principal Accounting Fees and Services. The information contained under the...

  • Page 60
    SIGNATURES Pursuant to the requirements of Section 13 or 15(d) of the Securities Exchange Act of 1934, the Registrant has duly caused this report to be signed on its behalf by the undersigned, thereunto duly authorized, on February 27, 2013. THE WASHINGTON POST COMPANY (Registrant) By /s/ Hal S. ...

  • Page 61
    INDEX TO FINANCIAL INFORMATION THE WASHINGTON POST COMPANY Management's Discussion and Analysis of Results of Operations and Financial Condition (Unaudited) ...Financial Statements: Management's Report on Internal Control Over Financial Reporting ...Report of Independent Registered Public Accounting...

  • Page 62
    ...% print advertising decline at the Post in 2011 and a 6% decline in 2010. Circulation volume also continued a downward trend, and circulation revenues were down 2% compared to 2011. The Company's online publishing activities, primarily at washingtonpost.com and The Slate Group, reported a 5% revenue...

  • Page 63
    ... in 2013 as the Company continues to evaluate its cost structure. A summary of Kaplan's operating results for 2012 compared to 2011 is as follows: (in thousands) Revenue Higher education ...Test preparation ...Kaplan international ...Kaplan corporate ...Intersegment elimination ...Operating Income...

  • Page 64
    ... positive cash flow from operations in 2012. Kaplan International includes English-language programs, and postsecondary education and professional training businesses outside the United States. In May 2011, Kaplan Australia acquired Franklyn Scholar and Carrick Education Group, national providers of...

  • Page 65
    ...., a provider of home health care and hospice services in the northeastern and midAtlantic regions that was acquired by The Washington Post Company in November 2012. Corporate Office. Corporate office includes the expenses of the Company's corporate office as well as a net pension credit. Equity in...

  • Page 66
    ...28%. Revenue declines at Kaplan accounted for the decrease in education revenue. The decrease in advertising revenue is due to declines at the television broadcasting and newspaper publishing divisions. Both subscriber revenue at the cable television division and circulation revenue at the Post were...

  • Page 67
    ... its business consistent with the migration of students to Kaplan's online and hybrid test preparation offerings, reducing the number of leased test preparation centers; $10.4 million in costs were incurred, mostly comprised of charges related to early lease termination and property, plant and...

  • Page 68
    ... the expenses of the Company's corporate office as well as the pension credit previously reported in the magazine publishing division (refer to Discontinued Operations discussion below). In the fourth quarter of 2010, certain Kaplan operations moved to the former Newsweek headquarters facility. In...

  • Page 69
    ..., a daily and Sunday newspaper headquartered in Everett, WA; the transaction is expected to close in March 2013. During 2011, the Company completed five business acquisitions totaling approximately $136.5 million, including assumed debt of $5.5 million and other assumed liabilities. Kaplan acquired...

  • Page 70
    ... cash dividend totaling $9.80 per share of outstanding common stock, in lieu of regular quarterly dividends that the Company otherwise would have declared and paid in calendar year 2013. The annual dividend rate for 2011 was $9.40 per share. Liquidity. During 2012, the Company's borrowings...

  • Page 71
    ... businesses that are reflected in the Company's Consolidated Financial Statements and commitments to purchase programming to be produced in future years. Includes purchase obligations related to newsprint contracts, printing contracts, employment agreements, circulation distribution agreements...

  • Page 72
    ... requirements and decide to continue with their studies, at which time the fees become fixed and determinable. Revenue from media advertising is recognized, net of agency commissions, when the underlying advertisement is published or broadcast. Revenues from newspaper subscriptions and retail sales...

  • Page 73
    ...Company's business plans for the periods 2013 through 2017 were used. The expected cash flows took into account historical growth rates, the effect of the changed economic outlook at some of the Company's businesses, industry challenges and an estimate for the possible impact of for-profit education...

  • Page 74
    ... flows and growth rates were based on forecasts and long-term business plans and take into account numerous factors, including historical experience, anticipated economic conditions, changes in the cable television systems' cost structures, homes in each region's service area, number of subscribers...

  • Page 75
    ... loss amount of $9.0 million is included in the pension cost for 2012. During 2012, there were pension asset gains and a further decrease in the discount rate. Primarily as a result of the decrease in the discount rate, the Company currently estimates that there will be net unamortized actuarial...

  • Page 76
    ... based on these criteria. The effectiveness of the Company's internal control over financial reporting as of December 31, 2012 has been audited by PricewaterhouseCoopers LLP, an independent registered public accounting firm, as stated in their report included herein. 64 THE WASHINGTON POST COMPANY

  • Page 77
    ... OF INDEPENDENT REGISTERED PUBLIC ACCOUNTING FIRM To the Board of Directors and Shareholders of The Washington Post Company: In our opinion, the consolidated financial statements referred to under Item 15 (1) on page 47 and listed in the index on page 49 present fairly, in all material respects...

  • Page 78
    THE WASHINGTON POST COMPANY CONSOLIDATED STATEMENTS OF OPERATIONS Fiscal Year Ended (in thousands, except per share amounts) Operating Revenues Education ...Advertising ...Circulation and subscriber ...Other ...Operating Costs and Expenses Operating ...Selling, general and administrative ......

  • Page 79
    THE WASHINGTON POST COMPANY CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME Fiscal Year Ended December 31, December 31, 2012 2011 January 2, 2011 $278,020 (in thousands) Net Income ...Other Comprehensive Income (Loss), Before Tax Foreign currency translation adjustments: Translation adjustments ...

  • Page 80
    THE WASHINGTON POST COMPANY CONSOLIDATED BALANCE SHEETS (In thousands, except share amounts) As of December 31, 2012 2011 Assets Current Assets Cash and cash equivalents ...Restricted cash ...Investments in marketable equity securities and other investments ...Accounts receivable, net ...Income ...

  • Page 81
    ... cash acquired ...Net proceeds from sales of businesses, property, plant and equipment and other assets ...Purchases of marketable equity securities and other investments ...Other ...Net Cash Used in Investing Activities ... Cash Flows from Financing Activities Common shares repurchased ...Issuance...

  • Page 82
    THE WASHINGTON POST COMPANY CONSOLIDATED STATEMENTS OF CHANGES IN COMMON STOCKHOLDERS' EQUITY Unrealized Unrealized Cumulative Gain (Loss) Gain (Loss) on Foreign on Pensions and Currency AvailableOther Cash Translation for-Sale Postretirement Flow Adjustment Securities Plans Hedge $ (990) (in ...

  • Page 83
    ... range of educational services for students and professionals. Kaplan's various businesses comprise three categories: Higher Education, Test Preparation and Kaplan International. Media-The Company's diversified media operations consist of cable television operations, newspaper publishing and...

  • Page 84
    ... customers who are eligible for advertising rate adjustments and discounts. Investments in Marketable Equity Securities. The Company's investments in marketable equity securities are classified as available-for-sale and, therefore, are recorded at fair value in the Consolidated Financial Statements...

  • Page 85
    ... video, high-speed Internet and phone services, and from advertising. Cable subscriber revenue is recognized monthly as services are delivered. Advertising revenue is recognized when the commercials or programs are aired. Newspaper publishing and television broadcasting revenues. Media advertising...

  • Page 86
    .... Self-Insurance. The Company uses a combination of insurance and self-insurance for a number of risks, including claims related to employee health care and dental care, disability benefits, workers' compensation, general liability, property damage and business interruption. Liabilities associated...

  • Page 87
    ..., plant and equipment write-downs in anticipation of the sale. The results of operations of Kidum, Avenue100, Kaplan EduNeering, KLT, KCS, KVE, Education Connection and the magazine publishing division for 2012, 2011 and 2010, where applicable, are included in the Company's Consolidated Statements...

  • Page 88
    ... gains on such sales were $0.5 million. There were no sales of marketable equity securities during 2011 and 2010. Investments in Affiliates. At the end of 2012, the Company holds a 16.5% interest in Classified Ventures, LLC, which owns and operates several leading businesses in the online classified...

  • Page 89
    ... operations (see Note 3). In February 2013, the Company announced that it had signed an agreement to sell The Herald, a daily and Sunday newspaper headquartered in Everett, WA; the transaction is expected to close in March 2013. During 2011, the Company completed five business acquisitions...

  • Page 90
    ... of unrecognized intangible assets identified in the step two analysis. The education division made several changes to its operating and reporting structure in the first quarter of 2011 and 2010, changing the composition of the reporting units within KTP and KHE. The 78 THE WASHINGTON POST COMPANY

  • Page 91
    ... amount of goodwill at the Company's education division for 2012 and 2011 were as follows: (in thousands) Balance as of January 2, 2011 Goodwill ...Accumulated impairment losses ...Reallocation, net ...Acquisitions ...Dispositions ...Foreign currency exchange rate changes and other ...Balance as...

  • Page 92
    ......Valuation allowances ...Deferred Tax Assets, Net ...Property, plant and equipment ...Prepaid pension cost ...Unrealized gain on available-for-sale securities ...Goodwill and other intangible assets ...Deferred Tax Liabilities ...Deferred Income Tax Liabilities, Net ...2012 $ 25,287 123,306 31,073...

  • Page 93
    ... tax assets are recorded at the newspaper publishing division, the corporate office and the education division, and may increase or decrease within the next 12 months, based on operating results or the market value of investment holdings; as a result, the Company is unable to estimate the potential...

  • Page 94
    ... paper borrowing was 0.5%. The Company's other indebtedness at December 31, 2012, is at interest rates of 0% to 6% and matures from 2013 to 2017. In January 2009, the Company issued $400 million in unsecured ten-year fixed-rate notes due February 1, 2019 (the Notes). The Notes have a coupon rate...

  • Page 95
    ...In addition, the holders of such stock have a right to require the Company to purchase their shares at the redemption price during an annual 60-day election period. Dividends on the Series A preferred stock are payable four times a year at the annual rate of $80.00 per share and in preference to any...

  • Page 96
    ... using the Black-Scholes method utilizing the following assumptions: 2012 Expected life (years) ...Interest rate ...Volatility ...Dividend yield ...2011 7 1.49%-2.85% 30.35%-31.24% 2.11%-2.74% Number Average Number of Option of Shares Price Shares Average Number Option of Price Shares Beginning...

  • Page 97
    ... per share amounts) 2012 2011 2010 The Company also provides health care and life insurance benefits to certain retired employees. These employees become eligible for benefits after meeting age and service requirements. The Company uses a measurement date of December 31 for its pension and other...

  • Page 98
    ...) arising from the Company's defined benefit pension plans for the years ended December 31, 2012 and 2011, and January 2, 2011, including a portion included in discontinued operations, consists of the following components: (in thousands) Service cost ...Interest cost ...Expected return on assets...

  • Page 99
    ...) Actuarial loss recognition ...Prior service cost recognition ...2013 Pension Plans SERP $8,588 $2,569 $3,635 $ 54 Defined Benefit Plan Assets. The Company's defined benefit pension obligations are funded by a portfolio made up of a relatively small number of stocks and high-quality fixed-income...

  • Page 100
    ... due to the sale of Newsweek; the gain is included in discontinued operations. The discount rates utilized for determining the benefit obligation at December 31, 2012 and 2011, for the postretirement plans were 3.30% and 3.90%, respectively. The assumed health care cost trend rate used in measuring...

  • Page 101
    ... November 30, 2012, and recorded a $0.9 million charge based on an estimate of the withdrawal liability. The Company, through The Washington Post and The Daily Herald newspapers, contributed to the CWA/ITU Negotiated Pension Plan (Employer Identification Number - 13-6212879, Plan Number 001) on...

  • Page 102
    ... will relieve The Washington Post and The Daily Herald of further liability to the Plan absent certain circumstances prescribed by law. The Company's total contributions to multiemployer pension plans that are not individually significant amounted to $0.2 million in 2012, $0.3 million in 2011 and...

  • Page 103
    ... scores of job applicants seeking financial positions. In March 2011, the court granted in part the Company's motion to dismiss the complaint. On January 28, 2013, the court entered summary judgment in favor of Kaplan Higher Education Corporation and against the EEOC, terminating the case in its...

  • Page 104
    ... the date the school determines that the student has withdrawn. Under DOE regulations, failure to make timely returns of Title IV program funds for 5% or more of students sampled in a school's annual compliance audit could result in a requirement that the school post a letter of credit in an amount...

  • Page 105
    ...203 Basis of Presentation. The Company's organizational structure is based on a number of factors that management uses to evaluate, view and run its business operations, which include, but are not limited to, customers, the nature of products and services and use of resources. The business segments...

  • Page 106
    ... of revenue is monthly subscription fees charged for services. Newspaper Publishing. Newspaper publishing includes the publication of newspapers in the Washington, DC, area and Everett, WA; newsprint warehousing; and the Company's digital media publishing businesses (primarily washingtonpost.com...

  • Page 107
    ... Celtic Healthcare, Inc. (Celtic), a provider of home health care and hospice services in the northeastern and mid-Atlantic regions that was acquired by the Company in November 2012. Corporate Office. Corporate office includes the expenses of the Company's corporate office and a net pension credit...

  • Page 108
    ... Company's business segments are as follows: (in thousands) Identifiable Assets Education ...Cable television ...Newspaper publishing ...Television broadcasting ...Other businesses ...Corporate office ...Investments in Marketable Equity Securities ...Investments in Affiliates ...Prepaid Pension Cost...

  • Page 109
    ... (Loss) from Operations Higher education ...Test preparation ...Kaplan international ...Kaplan corporate and other ...Intersegment elimination ...Depreciation of Property, Plant and Equipment Higher education ...Test preparation ...Kaplan international ...Kaplan corporate and other ...Amortization...

  • Page 110
    ... thousands, except per share amounts) 2012 Quarterly Operating Results Operating Revenues Education ...Advertising ...Circulation and subscriber ...Other ...Operating Costs and Expenses Operating ...Selling, general and administrative ...Depreciation of property, plant and equipment ...Amortization...

  • Page 111
    ...31, 2011, is as follows: (in thousands, except per share amount) 2011 Quarterly Operating Results Operating Revenues Education ...Advertising ...Circulation and subscriber ...Other ...Operating Costs and Expenses Operating ...Selling, general and administrative ...Depreciation of property, plant and...

  • Page 112
    ... 2012 and 2011 (after-tax and diluted EPS amounts): First Quarter 2012 Goodwill and other long-lived assets impairment charge of $81.9 million at Kaplan Test Preparation ...Charges of $45.5 million in connection with early retirement, severance and other restructuring at the education and newspaper...

  • Page 113
    ... Post and the corporate office • $13.9 million ($1.48 per share) in accelerated depreciation related to the planned closing of the Post's College Park, MD, plant • charges of $6.8 million ($0.72 per share) in connection with the restructuring of KHE's professional training businesses • gains...

  • Page 114
    [THIS PAGE INTENTIONALLY LEFT BLANK] 102 THE WASHINGTON POST COMPANY

  • Page 115
    ... Officer. The following financial information from The Washington Post Company Annual Report on Form 10-K for the year ended December 31, 2012, formatted in Extensible Business Reporting Language (XBRL): (i) Consolidated Statements of Operations for the fiscal years ended December 31, 2012 and 2011...

  • Page 116
    ....com The Capitol Deal TheCapitolDeal.com Service Alley ServiceAlley.com Express Publications ExpressNightOut.com El Tiempo Latino ElTiempoLatino.com Other Businesses Social Code SocialCode.com Washington Post Social Reader SocialReader.com Trove Trove.com Celtic Healthcare CelticHealthcare.com...

  • Page 117
    ...filings are accessible from the Company's website, washpostco.com. ANNUAL MEETING The annual meeting of stockholders will be held on May 9, 2013, at 9:00 a.m., at The Washington Post Company, 1150 15th Street, NW, Washington, DC. COMMON STOCK PRICES AND DIVIDENDS High and low sales prices during the...

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    1150 15TH STREET, NW WASHINGTON, DC 20071 (202) 334-6000 WASHPOSTCO.COM