Washington Post 2000 Annual Report Download

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27 Management’s Discussion and Analysis
of Results of Operations and Financial
Condition
33 Consolidated Statements of Income
33 Consolidated Statements of Comprehensive Income
34 Consolidated Balance Sheets
36 Consolidated Statements of Cash Flows
37 Consolidated Statements of Changes in
Common Shareholders’ Equity
38 Notes to Consolidated Financial Statements
51 Report of Independent Accountants
52 Ten-Year Summary of Selected Historical
Financial Data
54 Corporate Directory
Financial Contents

Table of contents

  • Page 1
    ... Balance Sheets Consolidated Statements of Cash Flows Consolidated Statements of Changes in Common Shareholders' Equity Notes to Consolidated Financial Statements Report of Independent Accountants Ten-Year Summary of Selected Historical Financial Data Corporate Directory 33 33 34 36 37 38 51 52 54

  • Page 2
    ...Division. Newspaper division revenue in 2000 previous year; circulation revenue remained essentially unchanged. Total print advertising revenue grew 4 percent in 2000 at The Washington Post newspaper, principally as a result of higher advertising rates. At The Post, higher advertising rates, offset...

  • Page 3
    ... represents the results of Quest Education Corporation from the date of its acquisition in August 2000. New business development activities represent the results of Score!, eScore.com and The Kaplan Colleges. The increase in new business development revenue is attributable mostly to new learning...

  • Page 4
    ... increase in circulation and subscriber revenue is primarily due to a 13 percent increase in subscriber revenue at the cable division. Revenue growth at Kaplan, Inc. (about two-thirds of which was from acquisitions) accounted for the increase in education revenue. The The Washington Post Company 29...

  • Page 5
    ... of which were offset in part by the decline in national advertising revenue. Magazine Publishing Division. Magazine division revenue was $401.1 Education Division. Excluding the operating results of the career fair and HireSystems businesses (these businesses were contributed to BrassRing at...

  • Page 6
    ... for cable systems serving approximately 115,400 subscribers and $100.4 million for educational, training, and career services companies. Dispositions. There were no significant business dispositions in 2000. the fair value of the Company's investments in marketable equity securities was $221...

  • Page 7
    .... The acquired newspapers have a combined total paid circulation of 50,000. Forward-looking Statements. This annual report contains certain for- cash and cash equivalents. At December 31, 2000, the Company had $525.4 million in commercial paper borrowings outstanding at an average interest rate of...

  • Page 8
    ...Income Fiscal year ended January 2, 2000 (in thousands, except share amounts) December 31, 2000 January 3, 1999 Operating Revenues Advertising ...Circulation and subscriber...Education...Other ... $ 1,396,583 601...50 is an integral part of the financial statements. The Washington Post Company 33

  • Page 9
    ... amortization of $404,513 and $341,879...Prepaid Pension Cost ...Deferred Charges and Other Assets ... 1,007,720 374,084 144,993 $ 3,200,743 886,060 337,818 125,548 $ 2,986,944 The information on pages 38 through 50 is an integral part of the financial statements. 34 The Washington Post Company

  • Page 10
    (in thousands, except share amounts) December 31, 2000 January 2, 2000 Liabilities and Shareholders' Equity Current Liabilities Accounts payable and accrued liabilities...$ Deferred subscription revenue...Short-term borrowings ... 273,076 85,721 50,000 408,797 128,764 178,029 117,731 873,267 1,...

  • Page 11
    ... ...37,406 Provision for deferred income taxes ...(7,743) Change in assets and liabilities: (Increase) decrease in accounts receivable, net ...(44,413) (Increase) decrease in inventories...(1,265) Increase (decrease) in accounts payable and accrued liabilities ...22,192 Decrease (increase) in...

  • Page 12
    ... 2, 2000...1,739 Net income for the year...Dividends paid on common stock-$5.40 per share...Dividends paid on redeemable preferred stock ...Repurchase of 200 shares of Class B common stock ...Issuance of 21,279 shares of Class B common stock, net of restricted stock award forfeitures ...Change in...

  • Page 13
    ... newspaper and magazine retail sales are recognized upon delivery with adequate provision made for anticipated sales returns. Cable subscriber revenue is recognized monthly as earned. Education revenue is recognized ratably over the period during which educational services are delivered. The Company...

  • Page 14
    ...At December 31, 2000, the Company's ownership of 2,634 shares of Berkshire Hathaway Inc. ("Berkshire") Class A common stock and 9,845 shares of Berkshire Class B common stock accounted for $210,189,000 or 95 percent of the total fair value of the Company's investments in marketable equity securities...

  • Page 15
    ...which owns and operates a newsprint mill in Nova Scotia; a 50 percent common stock interest in the International Herald Tribune newspaper, published near Paris, France; and a 50 percent common stock interest in the Los Angeles Times-Washington Post News Service, Inc. 40 The Washington Post Company

  • Page 16
    ... fair value. The company made no significant investments in cost method investments during 1998. Charges recorded to write-down cost method investments are included in "Other (expense) income, net" in the Consolidated Statements of Income. During 2000, proceeds from sales of cost method investments...

  • Page 17
    ...such stock have a right to require the Company to purchase their shares at the redemption price during an annual 60-day election period, with the first such period beginning on February 23, 2001. Dividends on the Series A Preferred Stock are payable four times a year at the annual rate of $80.00 per...

  • Page 18
    ... the right to require the Company to repurchase the Kaplan stock at the stock's then fair value. The fair value of Kaplan's common stock is determined by the Company's compensation committee. At December 31, 2000, options representing 12.5 percent of Kaplan's common stock were issued and outstanding...

  • Page 19
    ... and thereafter. Assumed healthcare cost trend rates have a significant effect on the amounts reported for the healthcare plans. A one-percentage point change in the assumed healthcare cost trend rates would have the following effects (in thousands): 1% Increase 1% Decrease Fair value of assets at...

  • Page 20
    ... All of these acquisitions were accounted for using the purchase method, and accordingly, the assets and liabilities of the companies acquired have been recorded at their estimated fair values at the date of acquisition. On August 2, 2000, the Company acquired Quest Education Corporation (Quest) for...

  • Page 21
    ...to approximately 735,000 subscribers in 18 midwestern, western, and southern states. The principal source of revenues is monthly subscription fees charged for services. Educational products and services are provided through the Company's wholly-owned subsidiary Kaplan, Inc. Kaplan's five major lines...

  • Page 22
    (in thousands) Newspaper Publishing Television Broadcasting Magazine Publishing Cable Television Education Other Businesses and Corporate Office Consolidated 2000 Operating revenue...Income (loss) from operations ...Equity in losses of affiliates ...Interest expense, net ...Other expense, ...

  • Page 23
    ... Southern Maryland Newspapers publishes the Maryland Independent in Charles County, Maryland; the Lexington Park Enterprise in St. Mary's County, Maryland; and the Recorder in Calvert County, Maryland. The acquired newspapers have a combined total paid circulation of 50,000. 48 The Washington Post...

  • Page 24
    ... income for the years ended December 31, 2000 and January 2, 2000 are as follows (in thousands, except per share amounts): First Quarter 2000 Quarterly Operating Results Operating revenue Advertising...Circulation and subscriber...Education ...Other ...Second Quarter Third Quarter Fourth Quarter...

  • Page 25
    ...Quarter 1999 Quarterly Operating Results Operating revenue Advertising...Circulation and subscriber...Education ...Other ... Second Quarter Third ... not necessarily be equal to the annual amounts reported in the Consolidated Statements of Income due to rounding. 50 The Washington Post Company

  • Page 26
    ...Independent Accountants To the Board of Directors and Shareholders of The Washington Post Company. In our opinion, the consolidated financial statements appearing on pages 33 through 50 of this report present fairly, in all material respects, the financial position of The Washington Post Company and...

  • Page 27
    ...shares outstanding...Diluted earnings per share Income before cumulative effect of changes in accounting principles...$ Cumulative effect of changes in accounting principles ...Net income ...$ Diluted average shares outstanding ...Cash dividends ...$ Common shareholders... The Washington Post Company

  • Page 28
    ... $ 524,975 242,627 390,804 1,568,121 51,842 993,005 $ 472,219 183,959 390,313 1,487,661 51,915 924,285 The Washington Post Company 53

  • Page 29
    ... Committee Warren E. Buffett (3) Vice President Beverly R. Keil Chairman of the Board, Berkshire Hathaway Inc. Daniel B. Burke (1, 2) Vice President Guyon Knight Former President and Chief Executive Officer, Capital Cities/ABC, Inc. Barry Diller Vice President - Corporate Communications...

  • Page 30
    ... P.O. Box 2506 Jersey City, NJ 07303-2506 Shareholder Inquiries The company's Form 10-K annual report to the Securities and Exchange Commission will be provided to shareholders upon written request to Treasurer, The Washington Post Company, 1150 15th Street, NW, Washington, D.C. 20071. Annual...

  • Page 31
    The Washington Post Company 1150 15th Street, NW Washington, D.C. 20071 (202) 334-6000 washpostco.com