Washington Post 2012 Annual Report Download - page 100

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(in thousands) Level 1 Level 2 Total
At December 31, 2011
Cash equivalents and other
short-term investments . . . $ 120,101 $43,166 $ 163,267
Equity securities
U.S. equities.......... 1,249,079 —1,249,079
International equities.... 381,924 —381,924
Fixed-income securities
U.S. Federal agency
mortgage-backed
securities ........... —1,071 1,071
Corporate debt
securities ........... —9,203 9,203
Other fixed income..... 2,531 8,121 10,652
Total investments ........ $1,753,635 $61,561 $1,815,196
Receivables ............ 1,381
Total .................. $1,816,577
Cash equivalents and other short-term investments. These invest-
ments are primarily held in U.S. Treasury securities and regis-
tered money market funds. These investments are valued using a
market approach based on the quoted market prices of the
security, or inputs that include quoted market prices for similar
instruments, and are classified as either Level 1 or Level 2 in the
valuation hierarchy.
U.S. equities. These investments are held in common and preferred
stock of U.S. corporations and American Depositary Receipts (ADRs)
traded on U.S. exchanges. Common and preferred shares and ADRs
are traded actively on exchanges, and price quotes for these shares
are readily available. These investments are classified as Level 1 in
the valuation hierarchy.
International equities. These investments are held in common and
preferred stock issued by non-U.S. corporations. Common and
preferred shares are traded actively on exchanges, and price
quotes for these shares are readily available. These investments
are classified as Level 1 in the valuation hierarchy.
U.S. Federal agency mortgage-backed securities. These invest-
ments consist of fixed-income securities issued by Federal Agencies
and are valued using a bid evaluation process, with bid data
provided by independent pricing sources. These investments are
classified as Level 2 in the valuation hierarchy.
Corporate debt securities. These investments consist of fixed-
income securities issued by U.S. corporations and are valued
using a bid evaluation process, with bid data provided by
independent pricing sources. These investments are classified as
Level 2 in the valuation hierarchy.
Other fixed income. These investments consist of fixed-income
securities issued by the U.S. Treasury and in private placements
and are valued using a quoted market price or bid evaluation
process, with bid data provided by independent pricing sources.
These investments are classified as Level 1 or Level 2 in the
valuation hierarchy.
Other Postretirement Plans. The following table sets forth
obligation, asset and funding information for the Company’s other
postretirement plans at December 31, 2012 and 2011:
Postretirement Plans
(in thousands) 2012 2011
Change in Benefit Obligation
Benefit obligation at beginning of year .... $ 72,412 $ 68,818
Service cost ........................ 3,113 2,872
Interest cost ........................ 2,735 3,063
Actuarial gain ....................... (11,493) (55)
Curtailment loss ..................... 438 —
Benefits paid, net of Medicare subsidy .... (3,337) (2,286)
Benefit Obligation at End of Year ........ $ 63,868 $ 72,412
Change in Plan Assets
Fair value of assets at beginning of year . . . $—$—
Employer contributions ................ 3,337 2,286
Benefits paid, net of Medicare subsidy .... (3,337) (2,286)
Fair Value of Assets at End of Year ...... $—$—
Funded Status ...................... $(63,868) $(72,412)
The amounts recognized in the Company’s Consolidated Balance
Sheets for its other postretirement plans at December 31, 2012 and
2011, are as follows:
Postretirement Plans
(in thousands) 2012 2011
Current liability ...................... $ (3,919) $ (4,548)
Noncurrent liability ................... (59,949) (67,864)
Recognized Liability .................. $(63,868) $(72,412)
In 2012, the Company offered a Voluntary Retirement Incentive
Program to certain employees of The Washington Post newspaper
and recorded early retirement expense of $0.4 million.
The Company recorded a curtailment gain of $8.5 million in 2010
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 the postretirement benefit
obligation at December 31, 2012, was 8.0% for pre-age 65,
decreasing to 5.0% in the year 2025 and thereafter. The assumed
health care cost trend rate used in measuring the postretirement
benefit obligation at December 31, 2012, was 21.8% for the post-
age 65 Medicare Advantage Prescription Drug (MA-PD) plan,
decreasing to 5.0% in the year 2023 and thereafter, and was
7.0% for the post-age 65 non MA-PD plan, decreasing to 5.0% in
the year 2021 and thereafter.
Assumed health care cost trend rates have a significant effect on
the amounts reported for the health care plans. A change of one
88 THE WASHINGTON POST COMPANY