Washington Post 2012 Annual Report Download - page 97

Earnings Per Share. The Company’s earnings per share from
continuing operations (basic and diluted) for the years ended
December 31, 2012 and 2011, and January 2, 2011 are
presented below:
(in thousands, except
per share amounts) 2012 2011 2010
Income from continuing operations
attributable to The Washington
Post Company common
stockholders ................ $48,041 $144,704 $355,091
Less: Amount attributable to
participating securities ......... (3,257) (1,459) (2,182)
Basic Income from Continuing
Operations Attributable to
The Washington Post Company
Common Stockholders ........ $44,784 $143,245 $352,909
Plus: Amount attributable to
participating securities ......... 3,257 1,459 2,182
Diluted Income from Continuing
Operations Attributable to The
Washington Post Company
Common Stockholders ........ $48,041 $144,704 $355,091
Basic weighted average shares
outstanding ................. 7,360 7,826 8,869
Plus: Effect of dilutive shares related
to stock options and restricted
stock ...................... 44 79 62
Diluted Weighted Average Shares
Outstanding ................ 7,404 7,905 8,931
Income Per Share from Continuing
Operations Attributable to The
Washington Post Company
Common Stockholders:
Basic ....................... $ 6.09 $ 18.30 $ 39.78
Diluted ...................... $ 6.09 $ 18.30 $ 39.76
For the year ended December 31, 2012, the basic earnings per
share computed under the two-class method is lower than the
diluted earnings per share computed under the if-converted
method for participating securities, resulting in the presentation of
the lower amount in diluted earnings per share. The 2012, 2011
and 2010 diluted earnings per share amounts exclude the effects
of 124,694, 115,294 and 30,225 stock options outstanding,
respectively, as their inclusion would have been antidilutive. The
2012 diluted earnings per share amounts also exclude the effects
of 52,200 restricted stock awards, as their inclusion would have
been antidilutive.
In 2012, 2011 and 2010, the Company declared regular div-
idends totaling $9.80, $9.40 and $9.00 per share, respectively.
In December 2012, the Company declared and paid an accel-
erated cash dividend totaling $9.80 per share, in lieu of regular
quarterly dividends that the Company otherwise would have
declared and paid in calendar year 2013.
13. PENSIONS AND OTHER POSTRETIREMENT PLANS
The Company maintains various pension and incentive savings
plans and contributes to multiemployer plans on behalf of certain
union-represented employee groups. Most of the Company’s
employees are covered by these plans.
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 postretirement benefit plans.
Defined Benefit Plans. The Company’s defined benefit pension
plans consist of various pension plans and a Supplemental
Executive Retirement Plan (SERP) offered to certain executives of
the Company.
Effective August 1, 2012, the Company’s defined benefit pension
plan was amended to provide most of the current participants with
a new cash balance benefit. The new cash balance benefit will be
funded by the assets of the Company’s pension plans. As a result of
this new benefit, the Company’s matching contribution for its 401(k)
Savings Plans was reduced.
In 2012, the Company offered a Voluntary Retirement Incentive
Program to certain employees of The Washington Post newspaper
and recorded early retirement expense of $7.5 million. In addition,
the Company offered a Voluntary Retirement Incentive Program to
certain employees of Post–Newsweek Media and recorded early
retirement expense of $1.0 million. The early retirement program
expense for these programs is funded from the assets of the
Company’s pension plans.
In 2011, the Company offered a Voluntary Retirement Incentive
Program to certain employees of Robinson Terminal Warehouse
Corporation and the Post and recorded early retirement expense of
$0.6 million. The early retirement program expense for these
programs is funded mostly from the assets of the Company’s
pension plans.
In connection with the Newsweek sale in 2010, the Company
recorded $5.3 million in special termination benefits expense and
$2.4 million in prior service cost expense; these amounts are
included in discontinued operations.
The following table sets forth obligation, asset and funding
information for the Company’s defined benefit pension plans at
December 31, 2012 and 2011:
Pension Plans
(in thousands) 2012 2011
Change in Benefit Obligation
Benefit obligation at beginning of year . . . $1,279,315 $1,113,205
Service cost ...................... 40,344 27,619
Interest cost ...................... 59,124 60,033
Amendments ..................... 8,508 2,776
Actuarial loss ..................... 144,286 140,126
Benefits paid and other ............. (65,255) (64,444)
Benefit Obligation at End of Year ..... $1,466,322 $1,279,315
Change in Plan Assets
Fair value of assets at beginning of year . . $1,816,577 $1,651,958
Actual return on plan assets .......... 319,823 229,063
Benefits paid and other ............. (65,255) (64,444)
Fair Value of Assets at End of Year .... $2,071,145 $1,816,577
Funded Status .................... $ 604,823 $ 537,262
2012 FORM 10-K 85