Washington Post 2002 Annual Report Download - page 49

During 2002, 2001 and 2000, the Company invested 35 percent to income before taxes as a result of the following (in
$0.3 million, $11.7 million and $42.5 million, respectively, in thousands):
companies constituting cost method investments and recorded 2002 2001 2000
charges of $19.2 million, $29.4 million and $23.1 million,
respectively, to write-down cost method investments to estimated U.S. Federal statutory taxes ** $ 123,784 $135,639 $80,455
fair value. Charges recorded to write-down cost method invest- State and local taxes, net of
U.S. Federal income tax
ments are included in ‘‘Other income (expense), net’’ in the
benefit ******************** 14,025 13,832 6,449
Consolidated Statements of Income.
Amortization of goodwill not
During 2002, 2001 and 2000, proceeds from sales of cost deductible for income tax
method investments were $1.2 million, $0.5 million and purposes ****************** —6,988 5,011
$7.1 million, respectively, and gross realized (losses) gains on Other, net******************* (509) 1,441 1,485
Provision for income taxes**** $ 137,300 $157,900 $93,400
such sales were $0, ($0.2 million) and $6.6 million, respective-
ly. Gross realized gains or losses on the sale of cost method Deferred income taxes at December 29, 2002 and Decem-
investments are included in ‘‘Other income (expense), net’’ in the ber 30, 2001 consist of the following (in thousands):
Consolidated Statements of Income.
2002 2001
D. INCOME TAXES
Accrued postretirement benefits ******* $ 58,874 $ 56,955
The provision for income taxes consists of the following (in Other benefit obligations ************* 94,280 73,080
thousands): Accounts receivable****************** 16,252 15,949
State income tax loss carryforwards *** 13,693 17,218
Current Deferred Total Other ******************************* 22,140 14,612
Deferred tax asset******************** 205,239 177,814
2002
U.S. Federal **** $ 75,654 $38,934 $114,588 Property, plant and equipment ******** 135,520 110,763
Foreign ********* 1,634 (499) 1,135 Prepaid pension cost ***************** 200,315 181,434
State and local ** 9,897 11,680 21,577 Affiliate operations******************* 180 (1,195)
$ 87,185 $50,115 $137,300 Unrealized gain on available-for-sale
2001 securities ************************** 11,463 15,475
U.S. Federal **** $ 48,253 $86,384 $134,637 Goodwill and other intangibles ******* 118,914 93,286
Foreign ********* 1,270 714 1,984 Deferred tax liability ***************** 466,392 399,763
Deferred income taxes**************** $ 261,153 $221,949
State and local ** 11,075 10,204 21,279
$ 60,598 $97,302 $157,900
2000 E. DEBT
U.S. Federal **** $ 77,517 $ 4,854 $ 82,371 At December 29, 2002, the Company had $664.8 million in
Foreign ********* 1,033 75 1,108 total debt outstanding at an average interest rate of 4.0 percent.
State and local ** 22,593 (12,672) 9,921 Debt was comprised of $259.3 million in commercial paper
$101,143 $ (7,743) $ 93,400
borrowings, $398.4 million of 5.5 percent unsecured notes due
In addition to the income tax provision presented above, in February 15, 2009, and $7.1 million in other debt.
2002, the Company recorded a federal and state income tax Interest on the 5.5 percent unsecured notes is payable semi-
benefit of $6.9 million on the impairment loss recorded as a annually on February 15 and August 15.
cumulative effect of change in accounting principle in connec-
tion with the adoption of SFAS 142. At December 29, 2002, and December 30, 2001, the average
interest rate on the Company’s outstanding commercial paper
The provision for income taxes exceeds the amount of income borrowings was 1.6 percent and 2.0 percent, respectively. In
tax determined by applying the U.S. Federal statutory rate of the third quarter of 2002, the Company replaced its revolving
credit facility agreements with a new five-year $350 million
revolving credit facility, which expires in August 2007, and a
new 364-day $350 million revolving credit facility, which
expires in August 2003. These revolving credit facility agree-
ments support the issuance of the Company’s short-term commer-
cial paper.
Under the terms of the five-year $350 million revolving credit
facility, interest on borrowings is at floating rates, and depend-
ing on the Company’s long-term debt rating, the Company is
required to pay an annual fee of 0.07 percent to 0.15 percent
2002 FORM 10-K 47