Washington Post 2002 Annual Report Download - page 52

Changes in Kaplan stock options outstanding for the years tirement plans at December 29, 2002 and December 30, 2001
ended December 29, 2002, December 30, 2001, and Decem- (in thousands):
ber 31, 2000, were as follows:
Pension Plans Postretirement Plans
2002 2001 2002 2001
2002 2001 2000
Number Average Number Average Number Average
Change in benefit
of Option of Option of Option
obligation
Shares Price Shares Price Shares Price
Benefit obligation at
beginning of year*** $ 431,017 $ 391,166 $ 105,392 $ 93,243
Beginning of year *** 142,578 $296.69 131,880 $246.14 95,100 $196.31
Service cost ********** 17,489 15,393 5,418 3,707
Granted ********* 6,475 652.00 27,962 526.00 36,780 375.00
Interest cost*********** 30,820 27,526 7,997 6,811
Exercised ******** (540) 375.00 (7,247) 227.20 – –
Amendments ********** 28,817 5,182 (3,130) —
Forfeited ********* (1,050) 403.76 (10,017) 321.67 – –
Actuarial loss ********* 22,851 22,334 1,487 6,519
Benefits paid ********* (32,042) (30,584) (4,990) (4,888)
End of year ******** 147,463 $311.24 142,578 $296.69 131,880 $246.14
Benefit obligation at
end of year ********* $ 498,952 $ 431,017 $ 112,174 $ 105,392
Of the shares covered by options outstanding at the end of
Change in plan assets
2002, 101,804 are now exercisable, 12,755 will become
Fair value of assets at
beginning of year*** $ 1,427,554 $1,314,885 ——
exercisable in 2003, 12,755 will become exercisable in
Actual return on plan
2004, 12,005 will become exercisable in 2005, 6,849 will
assets ************** (33,428) 143,253 ——
Employer contributions ——$ 4,990 $ 4,888
become exercisable in 2006, and 1,295 will become exercisa-
Benefits paid ********* (32,042) (30,584) (4,990) (4,888)
ble in 2007. Information related to stock options outstanding at Fair value of assets at
end of year ********* $ 1,362,084 $1,427,554 $—$—
December 29, 2002, is as follows:
Funded status ********* $ 863,132 $ 996,537 $ (112,174) $(105,392)
Weighted
Unrecognized
Average Weighted Weighted
transition asset****** (3,631) (8,852) ——
Number Remaining Average Number Average
Unrecognized prior
Range of Outstanding Contractual Exercise Exercisable Exercise
service cost********* 24,553 16,949 (3,469) (501)
Exercise Prices at 12/29/02 Life (yrs.) Price at 12/29/02 Price
Unrecognized
actuarial gain******* (390,268) (556,946) (20,750) (24,931)
$ 190 83,686 5.0 $190 83,686 $190
Net prepaid (accrued)
350–375 29,540 6.9 372 12,566 371
cost **************** $ 493,786 $ 447,688 $ (136,393) $(130,824)
526 27,762 8.0 526 5,552 526
652 6,475 8.0 652 – 652 The total (income) cost arising from the Company’s defined ben-
efit pension and postretirement plans for the years ended Decem-
Average Number of Shares Outstanding. Basic earnings per ber 29, 2002, December 30, 2001, and December 31,
share are based on the weighted average number of shares of 2000, consists of the following components (in thousands):
common stock outstanding during each year. Diluted earnings
per common share are based upon the weighted average num- Pension Plans Postretirement Plans
ber of shares of common stock outstanding each year, adjusted 2002 2001 2000 2002 2001 2000
for the dilutive effect of shares issuable under outstanding stock
options. Basic and diluted weighted average share information
Service cost ***************** $ 17,489 $ 15,393 $ 14,566 $ 5,418 $ 3,707 $ 3,496
Interest cost ***************** 30,820 27,526 24,962 7,997 6,811 6,338
for 2002, 2001 and 2000 is as follows:
Expected return on assets**** (92,192) (97,567) (85,522) ———
Amortization of transition
Basic Dilutive Diluted
asset ********************** (5,221) (6,502) (7,585) ———
Weighted Effect of Weighted
Amortization of prior service
Average Stock Average
cost *********************** 2,185 2,122 2,091 (421) (162) (162)
Shares Options Shares
Recognized actuarial gain*** (17,528) (17,917) (13,824) (2,435) (3,408) (2,870)
Net periodic (benefit) cost
2002**************** 9,503,983 18,671 9,522,654
for the year**************** (64,447) (76,945) (65,312) 10,559 6,948 6,802
2001**************** 9,486,386 13,173 9,499,559 Early retirement programs
expense ******************* 19,001 3,344 29,049 —— 1,968
2000**************** 9,445,466 14,362 9,459,828
Total (benefit) cost for the
year*********************** $ (45,446) $(73,601) $(36,263) $10,559 $ 6,948 $ 8,770
H. PENSIONS AND OTHER POSTRETIREMENT PLANS
The costs for the Company’s defined benefit pension and postre-
The Company maintains various pension and incentive savings tirement plans are actuarially determined. Key assumptions uti-
plans and contributes to several multi-employer plans on behalf lized at December 29, 2002, December 30, 2001, and
of certain union-represented employee groups. Substantially all December 31, 2000, include the following:
of the Company’s employees are covered by these plans.
Pension Plans Postretirement Plans
The Company also provides health care and life insurance bene-
2002 2001 2000 2002 2001 2000
fits to certain retired employees. These employees become eligi-
ble for benefits after meeting age and service requirements. Discount rate ******************** 6.75% 7.0% 7.5% 6.75% 7.0% 7.5%
Expected return on plan assets**** 7.5% 7.5% 9.0% ———
The following table sets forth obligation, asset and funding infor- Rate of compensation increase**** 4.0% 4.0% 4.0% ———
mation for the Company’s defined benefit pension and postre-
50 THE WASHINGTON POST COMPANY