Washington Post 2003 Annual Report Download - page 55

Liquidity. At December 28, 2003, the Company had $87.4 mil- cial paper borrowings. In management's opinion, the Company will
lion in cash and cash equivalents, compared to $28.8 million at have ample liquidity to meet its various cash needs in 2004.
December 29, 2002. The following reflects a summary of the Company's contractual
At December 28, 2003, the Company had $188.3 million in obligations and commercial commitments as of December 28,
commercial paper borrowings outstanding at an average interest 2003:
rate of 1.1 percent with various maturities through the first quarter of
Contractual Obligations
2004. In addition, the Company had outstanding $398.7 million of (in thousands)
5.5 percent, 10-year unsecured notes due February 2009. These
2004 2005 2006 2007 2008 Thereafter Total
notes require semiannual interest payments of $11.0 million paya-
ble on February 15 and August 15. The Company also had
Commercial paper $188,316 $ Ì $ Ì $ Ì $ Ì $ Ì $ 188,316
Long-term debt 20,304 4,114 18,846 839 8 398,663 442,774
$44.1 million in other debt.
Programming
purchase
During 2003, the Company's borrowings, net of repayments,
commitments
(1)
119,874 84,308 64,822 50,026 28,460 15,707 363,197
Operating leases 69,104 63,905 57,945 54,095 45,603 135,826 426,478
decreased by $33.7 million, with the decrease primarily due to
Other purchase
cash flow from operations. While the Company paid down
obligations
(2)
310,401 74,386 52,166 44,015 35,585 133,760 650,313
Long-term
$71.0 million in commercial paper borrowings during 2003, the
liabilities
(3)
6,500 7,100 7,600 8,150 8,700 115,342 153,392
Company also partially financed $36.7 million in acquisitions during
Total ÏÏÏÏÏÏÏÏÏÏÏ $714,499 $233,813 $201,379 $157,125 $118,356 $799,298 $2,224,470
this period.
During the third quarter of 2003, the Company replaced its (1) Includes commitments for the Company's television broadcast-
$350 million 364-day revolving credit facility with a new $250 mil- ing and cable television businesses that are reflected in the
lion revolving credit facility, which expires in August 2004. The Company's consolidated balance sheet and commitments to
Company's five-year $350 million revolving credit facility, which purchase programming to be produced in future years.
expires in August 2007, remains in effect. These revolving credit (2) Includes purchase obligations related to newsprint contracts,
facility agreements support the issuance of the Company's short- printing contracts, employment agreements, circulation distri-
term commercial paper and provide for general corporate bution agreements, capital projects and other legally binding
purposes. commitments. Other purchase orders made in the ordinary
course of business are excluded from the table above. Any
During 2003 and 2002, the Company had average borrowings
amounts for which the Company is liable under purchase
outstanding of approximately $605.7 million and $793.7 million,
orders are reflected in the Company's consolidated balance
respectively, at average annual interest rates of approximately
sheet as accounts payable and accrued liabilities.
4.2 percent and 3.7 percent, respectively. The Company incurred
net interest expense on borrowings of $26.9 million and $33.5 mil- (3) Primarily made up of postretirement benefit obligations other
lion during 2003 and 2002, respectively. than pensions. The Company has other long-term liabilities
excluded from the table above, including obligations for
At December 28, 2003 and December 29, 2002, the Company deferred compensation, long-term incentive plans and long-
had a working capital deficit of $216.0 million and $353.2 million, term deferred revenue.
respectively. The Company maintains working capital levels consis-
tent with its underlying business requirements and consistently gener- Other Commercial Commitments
ates cash from operations in excess of required interest or principal (in thousands)
payments. The Company has classified all of its commercial paper Lines of
borrowing obligations as a current liability at December 28, 2003 Fiscal Year Credit
and December 29, 2002, as the Company intends to pay down
2004 ÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏ $ 250,000
commercial paper borrowings from operating cash flow. However,
2005 ÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏ Ì
the Company continues to maintain the ability to refinance such 2006 ÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏ Ì
obligations on a long-term basis through new debt issuance and/or 2007 ÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏ 350,000
its revolving credit facility agreements. 2008 ÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏ Ì
Thereafter ÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏ Ì
The Company's net cash provided by operating activities, as
Total ÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏ $ 600,000
reported in the Company's Consolidated Statements of Cash Flows,
was $337.7 million in 2003 as compared to $497.5 million in Other. The Company does not have any off-balance sheet
2002. The decline is primarily due to significant payments for arrangements or financing activities with special-purpose entities
Kaplan stock options in 2003, and a large increase in the compa- (SPEs). Transactions with related parties, as discussed in Note C to
ny's income tax payments in 2003. the Consolidated Financial Statements, are in the ordinary course of
The Company expects to fund its estimated capital needs primarily business and are conducted on an arm's-length basis.
through internally generated funds and, to a lesser extent, commer-
2003 FORM 10-K 35