Washington Post 2005 Annual Report Download - page 66

Note G provides additional details surrounding The Washington invest in Berkshire common stock. The Company's investment in
Post Company and Kaplan stock option plans. Berkshire common stock is less than 1% of the consolidated equity
of Berkshire. At January 1, 2006 and January 2, 2005, the
B. ACCOUNTS RECEIVABLE AND ACCOUNTS PAYABLE unrealized gain related to the Company's Berkshire stock investment
AND ACCRUED LIABILITIES totaled $77.4 million and $75.5 million, respectively. The Compa-
ny presently intends to hold the Berkshire common stock investment
Accounts receivable at January 1, 2006 and January 2, 2005
long term, thus the investment has been classified as a non-current
consist of the following (in thousands):
asset in the Consolidated Balance Sheets.
2005 2004
There were no investments in marketable equity securities in 2005
Trade accounts receivable, and 2003. The Company made $94.6 million in investments in
less estimated returns, doubtful marketable equity securities in 2004. During 2005, proceeds from
accounts and allowances of $78,099 the sales of marketable equity securities were $64.8 million, and net
and $70,965 ÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏ $375,668 $342,879
realized gains on such sales were $12.7 million. During 2004 and
Other accounts receivable ÏÏÏÏÏÏÏÏÏÏÏÏÏ 22,884 19,983
2003, there were no sales of marketable equity securities or
$398,552 $362,862
realized gains (losses). During 2003, the Company recorded
Accounts payable and accrued liabilities at January 1, 2006 and write-downs on marketable equity securities of $0.2 million. Real-
January 2, 2005 consist of the following (in thousands): ized gains or losses on marketable equity securities are included in
""Other income (expense), net'' in the Consolidated Statements of
2005 2004
Income. For purposes of computing realized gains and losses, the
Accounts payable and accrued expenses $272,441 $231,066 cost basis of securities sold is determined by specific identification.
Accrued compensation and related
Investments in Affiliates. The Company's investments in affili-
benefits ÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏ 158,612 204,225
Due to affiliates (newsprint) ÏÏÏÏÏÏÏÏÏÏÏ 7,640 8,041 ates at January 1, 2006 and January 2, 2005 include the following
$438,693 $443,332 (in thousands):
2005 2004
Book overdrafts of $33.7 million and $27.2 million are included in
accounts payable and accrued expenses at January 1, 2006 and BrassRing ÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏ $11,349 $ 8,755
January 2, 2005, respectively. Bowater Mersey Paper CompanyÏÏÏÏÏÏÏÏÏÏ 54,407 52,112
Los Angeles TimesÓWashington Post
C. INVESTMENTS News Service ÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏ 1,019 947
$66,775 $61,814
Investments in Marketable Equity Securities. Investments
in marketable equity securities at January 1, 2006 and January 2, At the end of 2005, the Company's investments in affiliates consist-
2005 consist of the following (in thousands): ed of a 49.4% interest in BrassRing LLC, an Internet-based hiring
management company; a 49% interest in the common stock of
2005 2004
Bowater Mersey Paper Company Limited, which owns and operates
Total cost ÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏ $234,196 $285,912 a newsprint mill in Nova Scotia; and a 50% common stock interest
Net unrealized gains ÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏ 95,725 123,824 in the Los Angeles TimesÓWashington Post News Service, Inc.
Total fair value ÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏ $329,921 $409,736 Summarized financial data for the affiliates' operations are as
follows (in thousands):
At January 1, 2006 and January 2, 2005, the Company's owner-
ship of 2,634 shares of Berkshire Hathaway Inc. (""Berkshire'') 2005 2004 2003
Class A common stock and 9,845 shares of Berkshire Class B
Financial Position
common stock accounted for $262.3 million or 80% and Working capitalÏÏÏÏÏÏÏÏ $ 13,861 $ 9,014 $ 11,108
$260.4 million or 64%, respectively, of the total fair value of the Property, plant and
Company's investments in marketable equity securities. equipment ÏÏÏÏÏÏÏÏÏÏÏ 131,823 137,321 140,917
Total assetsÏÏÏÏÏÏÏÏÏÏÏÏ 214,333 202,904 214,658
Berkshire is a holding company owning subsidiaries engaged in a
Long-term debtÏÏÏÏÏÏÏÏÏ ÌÌÌ
number of diverse business activities, the most significant of which
Net equityÏÏÏÏÏÏÏÏÏÏÏÏÏ 164,801 155,147 149,584
consist of property and casualty insurance business conducted on
both a direct and reinsurance basis. Berkshire also owns approxi- Results of Operations
Operating revenues ÏÏÏÏ $236,233 $221,618 $174,505
mately 18% of the common stock of the Company. The chairman,
Operating income
chief executive officer and largest shareholder of Berkshire,
(loss) ÏÏÏÏÏÏÏÏÏÏÏÏÏÏ 3,513 1,695 (18,753)
Mr. Warren Buffett, is a member of the Company's Board of
Net lossÏÏÏÏÏÏÏÏÏÏÏÏÏÏÏ (1,806) (4,577) (20,164)
Directors. Neither Berkshire nor Mr. Buffett participated in the
Company's evaluation, approval or execution of its decision to
50 THE WASHINGTON POST COMPANY