Washington Post 2005 Annual Report Download - page 32

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availability of funding for the Title IV programs that provide for the payment of grants is wholly contingent upon the outcome
of the annual federal appropriations process.
Whether as a result of changes in the laws and regulations governing Title IV programs, a reduction in Title IV program
funding levels, or a failure of schools included in Kaplan's Higher Education Division to maintain eligibility to participate in
Title IV programs, a material reduction in the amount of Title IV financial assistance available to the students of those schools
would have a significant negative impact on Kaplan's operating results.
Other Activities
Bowater Mersey Paper Company
The Company owns 49% of the common stock of Bowater Mersey Paper Company Limited, the majority interest in which is
held by a subsidiary of Bowater Incorporated. Bowater Mersey owns and operates a newsprint mill near Halifax, Nova
Scotia, and also owns extensive woodlands that provide part of the mill's wood requirements. In 2005 Bowater Mersey
produced about 270,000 tons* of newsprint.
BrassRing
The Company beneficially owns a 49.4% equity interest in BrassRing LLC, an Internet-based hiring management company.
The other principal members of BrassRing are the Tribune Company with a 26.9% interest; Gannett Co., Inc. with a
12.4% interest; and the venture capital firm Accel Partners with a 10.5% interest.
Production and Raw Materials
The Washington Post, Express
and
El Tiempo Latino
are all produced at the printing plants of WP Company in Fairfax
County, Virginia and Prince George's County, Maryland.
The Herald
and
The Enterprise Newspapers
are produced at The
Daily Herald Company's plant in Everett, Washington, while
The Gazette Newspapers
and
Southern Maryland
Newspapers
are printed at the commercial printing facilities owned by Post-Newsweek Media, Inc. (the PostNewsweek
Media facilities also produced
El Tiempo Latino
prior to February 2006). Greater Washington Publishing's periodicals are
produced by independent contract printers with the exception of one periodical that is printed at one of the commercial
printing facilities owned by Post-Newsweek Media, Inc. All PostNewsweek Tech Media publications are produced by
independent contract printers.
Newsweek
's domestic edition is produced by three independent contract printers at six separate plants in the United
States; advertising inserts and photo-offset films for the domestic edition are also produced by independent contractors.
The international editions of
Newsweek
are printed in England, Singapore, Switzerland, the Netherlands, South Africa and
Hollywood, Florida; insertions for
The Bulletin
are printed in Australia. Since 1997 Newsweek and a subsidiary of Time
Warner have used a jointly owned company based in England to provide production and distribution services for the
Europe, Middle East and Africa edition of
Newsweek
and the Europe edition of
Time.
In 2002 this jointly owned
company began providing certain production and distribution services for the Asian editions of these magazines.
Budget
Travel
is produced by one of the independent contract printers that also prints
Newsweek
's domestic edition.
In 2005
The Washington Post
and
Express
consumed about 175,300 tons and 4,400 tons of newsprint, respectively.
Such newsprint was purchased from a number of suppliers, including Bowater Incorporated, which supplied approximately
39% of the 2005 newsprint requirements for these newspapers. Although for many years some of the newsprint
purchased by WP Company from Bowater Incorporated typically was provided by Bowater Mersey Paper Company
Limited, since 1999 none of the newsprint delivered to WP Company has come from that source.
The announced price of newsprint (excluding discounts) was approximately $750 per ton throughout 2005. Discounts
from the announced price of newsprint can be substantial, and prevailing discounts decreased throughout the year. The
Company believes adequate supplies of newsprint are available to
The Washington Post
and the other newspapers
published by the Company's subsidiaries through contracts with various suppliers. More than 90% of the newsprint
consumed by WP company's printing plants includes recycled content. The Company owns 80% of the stock of Capitol
Fiber Inc., which handles and sells to recycling industries old newspapers, paper and other recyclable materials collected
in Washington, D.C., Maryland and northern Virginia.
In 2005 the operations of The Daily Herald Company and Post-Newsweek Media, Inc. consumed approximately 6,800
and 23,000 tons of newsprint, respectively, which were obtained in each case from various suppliers. Approximately
* All references in this report to newsprint tonnage and prices refer to short tons (2,000 pounds) and not to metric tons (2,204.6 pounds), which
are often used in newsprint quotations.
16 THE WASHINGTON POST COMPANY