Washington Post 2012 Annual Report Download - page 89

The changes in allowance for doubtful accounts and returns and
allowance for advertising rate adjustments and discounts during
2012, 2011 and 2010 were as follows:
(in thousands)
Balance at
Beginning
of Period
Additions –
Charged to
Costs and
Expenses Deductions
Balance
at
End of
Period
Year Ended December 31, 2012
Allowance for
doubtful accounts
and returns ..... $ 48,199 $ 55,605 $ (70,192) $ 33,612
Allowance for
advertising rate
adjustments and
discounts ...... 2,026 15,088 (15,264) 1,850
$ 50,225 $ 70,693 $ (85,456) $ 35,462
Year Ended December 31, 2011
Allowance for
doubtful accounts
and returns ..... $ 67,007 $ 61,327 $ (80,135) $48,199
Allowance for
advertising rate
adjustments and
discounts ...... 3,174 11,868 (13,016) 2,026
$ 70,181 $ 73,195 $ (93,151) $50,225
Year Ended January 2, 2011
Allowance for
doubtful accounts
and returns ..... $ 98,286 $137,888 $(169,167) $67,007
Allowance for
advertising rate
adjustments and
discounts ...... 8,495 12,216 (17,537) 3,174
$106,781 $150,104 $(186,704) $70,181
Accounts payable and accrued liabilities at December 31, 2012
and 2011, consist of the following:
(in thousands) 2012 2011
Accounts payable and accrued liabilities . . . $310,294 $333,282
Accrued compensation and related benefits . . . 176,102 161,759
$486,396 $495,041
Cash overdrafts of $0.9 million and $2.1 million are included in
accounts payable and accrued liabilities at December 31, 2012
and 2011, respectively.
6. PROPERTY, PLANT AND EQUIPMENT
Property, plant and equipment at December 31, 2012 and 2011
consist of the following:
(in thousands) 2012 2011
Land .......................... $ 42,992 $ 41,093
Buildings ...................... 364,844 350,939
Machinery, equipment and fixtures .... 2,617,344 2,479,823
Leasehold improvements ........... 314,555 304,421
Construction in progress ........... 66,734 95,173
3,406,469 3,271,449
Less accumulated depreciation ....... (2,325,232) (2,119,059)
$ 1,081,237 $ 1,152,390
Depreciation expense was $268.6 million, $249.1 million and
$242.4 million in 2012, 2011 and 2010, respectively.
7. ACQUISITIONS AND DISPOSITIONS
The Company completed business acquisitions totaling approx-
imately $55.6 million, $136.5 million and $14.1 million, in
2012, 2011 and 2010, respectively. The assets and liabilities of
the companies acquired have been recorded at their estimated fair
values at the date of acquisition.
During 2012, the Company completed five business acquisitions
totaling approximately $55.6 million. In November 2012, the
Company completed its acquisition of a controlling interest in Celtic
Healthcare,Inc.(Celtic),aproviderofhomehealthcareand
hospice services in the northeastern and mid-Atlantic regions. The
operating results of Celtic are included in other businesses. The fair
value of the noncontrolling interest in Celtic was $5.9 million at the
acquisition date, determined using a market approach. The minority
shareholder has an option to put their shares to the Company from
2018 to 2022, and the Company has an option to buy the shares
of the minority shareholder in 2022. The Company also acquired
three small businesses in its education division and one small business
in other businesses. The purchase price allocations mostly comprised
goodwill and other intangible assets on a preliminary basis.
The Company divested its interest in Avenue100 Media Solutions
in July 2012, which was previously reported in other businesses.
Kaplan completed the sales of Kidum in August 2012, EduNeering
in April 2012 and Kaplan Learning Technologies in February 2012,
which were part of the Kaplan Ventures division. Consequently, the
Company’s income from continuing operations excludes results from
these businesses, which have been reclassified to discontinued
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
totaling approximately $136.5 million, including assumed debt of
$5.5 million and other assumed liabilities. Kaplan acquired three
businesses in its Kaplan International division, one business in its
KHE division and one business in its Kaplan Ventures division. These
included the May 2011 acquisitions of Franklyn Scholar and
Carrick Education Group, leading national providers of vocational
training and higher education in Australia, and the June 2011
acquisition of Structuralia, a provider of e-learning for the
engineering and infrastructure sector in Spain. During 2010, the
Company acquired six businesses for $14.1 million. Kaplan
acquired two small businesses in its KTP division, one small business
in its Ventures division and one small business in its International
division. The Company made two small acquisitions in its cable
television and other businesses divisions. The purchase price
allocations for these acquisitions mostly comprised goodwill, other
intangible assets and property, plant and equipment.
Kaplan completed the sales of KVE in July 2011 and KCS in
October 2011, which were part of Kaplan Ventures and KHE,
respectively. In April 2010, Kaplan completed the sale of Education
2012 FORM 10-K 77