Washington Post 2003 Annual Report Download - page 68

E. DEBT 4.2 percent and 3.7 percent, respectively. The Company incurred
net interest costs on its borrowings of $26.9 million and $33.5 mil-
Long-term debt consists of the following (in millions): lion during 2003 and 2002, respectively. No interest expense was
December 28, December 29, capitalized in 2003 or 2002.
2003 2002 At December 28, 2003 and December 29, 2002, the fair value of
Commercial paper borrowings ÏÏÏ $ 188.3 $ 259.3 the Company's 5.5 percent unsecured notes, based on quoted
5.5 percent unsecured notes due market prices, totaled $434.6 million and $426.6 million, respec-
February 15, 2009 ÏÏÏÏÏÏÏÏÏÏÏ 398.7 398.4 tively, compared with the carrying amount of $398.7 million and
4.0 percent notes due 2004Ó $398.4 million, respectively.
2006 (16.7 million) ÏÏÏÏÏÏÏÏ 29.7 Ì
Other indebtedness ÏÏÏÏÏÏÏÏÏÏÏÏÏ 14.4 7.1 The carrying value of the Company's commercial paper borrowings
Total ÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏ 631.1 664.8 and other unsecured debt at December 28, 2003 and Decem-
Less current portion ÏÏÏÏÏÏÏÏÏÏÏÏÏ (208.6) (259.3) ber 29, 2002 approximates fair value.
Total long-term debtÏÏÏÏÏÏÏÏÏÏÏÏÏ $ 422.5 $ 405.5
F. REDEEMABLE PREFERRED STOCK
The notes of 16.7 million were issued to current FTC employees
In connection with the acquisition of a cable television system in
who were former FTC shareholders in connection with the acquisi-
1996, the Company issued 11,947 shares of its Series A Preferred
tion. The noteholders, at their discretion, may elect to receive
Stock. On February 23, 2000, the Company issued an additional
25 percent of their outstanding balance in January 2004. In August
1,275 shares related to this transaction. From 1998 to 2003, 682
2004, 50 percent of the original outstanding balance (less any
shares of Series A Preferred Stock were redeemed at the request of
amounts paid in January 2004) is due for payment. The remaining
Series A Preferred Stockholders.
balance outstanding is due for payment in August 2006.
The Series A Preferred Stock has a par value of $1.00 per share
Interest on the 5.5 percent unsecured notes is payable semi-
and a liquidation preference of $1,000 per share; it is redeemable
annually on February 15 and August 15.
by the Company at any time on or after October 1, 2015 at a
At December 28, 2003 and December 29, 2002, the average redemption price of $1,000 per share. In addition, the holders of
interest rate on the Company's outstanding commercial paper such stock have a right to require the Company to purchase their
borrowings was 1.1 percent and 1.6 percent, respectively. During shares at the redemption price during an annual 60-day election
the third quarter of 2003, the Company replaced its $350 million period; the first such period began on February 23, 2001. Divi-
364-day revolving credit facility with a new $250 million revolving dends on the Series A Preferred Stock are payable four times a year
credit facility, which expires in August 2004. In 2002, the Compa- at the annual rate of $80.00 per share and in preference to any
ny replaced its revolving credit facility agreements with a new five- dividends on the Company's common stock. The Series A Preferred
year $350 million revolving credit facility, which expires in August Stock is not convertible into any other security of the Company, and
2007. These revolving credit facility agreements support the issu- the holders thereof have no voting rights except with respect to any
ance of the Company's short-term commercial paper. proposed changes in the preferences and special rights of such
stock.
Under the terms of the five-year $350 million revolving credit
facility, interest on borrowings is at floating rates, and depending G. CAPITAL STOCK, STOCK AWARDS AND STOCK
on the Company's long-term debt rating, the Company is required OPTIONS
to pay an annual fee of 0.07 percent to 0.15 percent on the
Capital Stock. Each share of Class A common stock and Class B
unused portion of the facility, and 0.25 percent to 0.75 percent on
common stock participates equally in dividends. The Class B stock
the used portion of the facility. Under the terms of the $250 million
has limited voting rights and as a class has the right to elect
364-day revolving credit facility, interest on borrowings is at
30 percent of the Board of Directors; the Class A stock has
floating rates, and based on the Company's long-term debt rating,
unlimited voting rights, including the right to elect a majority of the
the Company is required to pay an annual fee of 0.05 percent to
Board of Directors.
0.125 percent on the unused portion of the facility, and 0.25 per-
cent to 0.75 percent on the used portion of the facility. Also under During 2003, 2002 and 2001, the Company purchased a total of
the terms of the $250 million 364-day revolving credit facility, the 910 shares, 1,229 shares and 714 shares, respectively, of its
Company has the right to extend the term of any borrowings for up Class B common stock at a cost of approximately $0.7 million,
to one year from the credit facility's maturity date for an additional $0.8 million and $0.4 million. At December 28, 2003, the Compa-
fee of 0.125 percent. Both revolving credit facilities contain certain ny has authorization from the Board of Directors to purchase up to
covenants, including a financial covenant that the Company main- 542,800 shares of Class B common stock.
tain at least $1 billion of consolidated shareholders' equity.
Stock Awards. In 1982, the Company adopted a long-term
During 2003 and 2002, the Company had average borrowings incentive compensation plan, which, among other provisions, autho-
outstanding of approximately $605.7 million and $793.7 million, rizes the awarding of Class B common stock to key employees.
respectively, at average annual interest rates of approximately Stock awards made under this incentive compensation plan are
48 THE WASHINGTON POST COMPANY