Washington Post 2003 Annual Report Download - page 70

be recorded on these remaining exercised stock options over the common stock outstanding during each year. Diluted earnings per
remaining vesting periods of 2004 to 2007. A small number of key common share are based upon the weighted average number of
Kaplan executives will continue to hold the remaining 68,000 outstanding shares of common stock outstanding each year, adjusted for the
Kaplan stock options, with roughly half of these options expiring in 2007 dilutive effect of shares issuable under outstanding stock options.
and half expiring in 2011. The remaining 68,000 of outstanding Kaplan Basic and diluted weighted average share information for 2003,
stock options represent 4.8 percent of Kaplan's common stock at 2002 and 2001 is as follows:
December 28, 2003. The Company does not expect to issue additional
Basic Dilutive Diluted
Kaplan stock options in the future. Weighted EÅect of Weighted
Average Stock Average
For 2003, 2002 and 2001, the Company recorded expense of
Shares Options Shares
$119.1 million, $34.5 million and $25.3 million, respectively,
related to this plan. In 2003 and 2002, payouts from option 2003 ÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏ 9,530,209 24,454 9,554,663
exercises totaled $119.6 million and $0.2 million, respectively. At 2002 ÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏ 9,503,983 18,671 9,522,654
2001 ÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏ 9,486,386 13,173 9,499,559
December 28, 2003, the Company's stock-based compensation
accrual balance totaled $73.9 million. The 2003, 2002 and 2001 diluted earnings per share amounts
exclude the effects of 16,750, 11,500 and 31,000 stock options
Changes in Kaplan stock options outstanding for the years ended
outstanding, respectively, as their inclusion would be antidilutive.
December 28, 2003, December 29, 2002 and December 30,
2001 were as follows:
H. PENSIONS AND OTHER POSTRETIREMENT PLANS
2003 2002 2001
Number Average Number Average Number Average The Company maintains various pension and incentive savings plans
of Option of Option of Option and contributes to several multi-employer plans on behalf of certain
Shares Price Shares Price Shares Price
union-represented employee groups. Substantially all of the Compa-
Beginning of year ÏÏÏÏ 147,463 $311.24 142,578 $296.69 131,880 $246.14 ny's employees are covered by these plans.
Granted ÏÏÏÏÏÏÏÏÏ 16,037 1,546.23 6,475 652.00 27,962 526.00
ExercisedÏÏÏÏÏÏÏÏÏ (94,652) 303.66 (540) 375.00 (7,247) 227.20 The Company also provides health care and life insurance benefits
Forfeited ÏÏÏÏÏÏÏÏÏ (848) 382.12 (1,050) 403.76 (10,017) 321.67 to certain retired employees. These employees become eligible for
End of yearÏÏÏÏÏÏÏÏÏ 68,000 $596.17 147,463 $311.24 142,578 $296.69 benefits after meeting age and service requirements.
Of the shares covered by options outstanding at the end of 2003, The Company uses a measurement date of December 31 for its
39,910 are now exercisable, 7,332 will become exercisable in pension and other postretirement benefit plans.
2004, 7,332 will become exercisable in 2005, 7,232 will In 2001, 2002 and 2003, the Company offered several early
become exercisable in 2006, 3,397 will become exercisable in retirement programs to certain groups of employees at The Wash-
2007, and 2,797 will become exercisable in 2008. Information ington Post newspaper, Newsweek and the corporate office, the
related to stock options outstanding at December 28, 2003 is as effects of which are included below. Effective June 1, 2003, the
follows: retirement pension program for certain employees at The Washing-
Weighted ton Post newspaper and the corporate office was amended and
Average provides for increased annuity payments for vested employees
Number Remaining Number
Outstanding Contractual Exercisable retiring after this date. This plan amendment resulted in a reduction
Exercise Price at 12/28/03 Life (yrs.) at 12/28/03 in the pension credit of approximately $2.6 million for the year
ended December 28, 2003.
$190 31,341 4.0 31,341
375 500 5.6 300 The following table sets forth obligation, asset and funding informa-
526 19,172 7.0 7,669
tion for the Company's defined benefit pension and postretirement
652 3,000 7.0 600
861 487 7.0 0
1,625 13,500 8.0 0
Average Number of Shares Outstanding. Basic earnings
per share are based on the weighted average number of shares of
50 THE WASHINGTON POST COMPANY