Washington Post 2009 Annual Report Download

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Table of contents

  • Page 1
    T H E WAS HI NGTON POST C OMPANY ANNuAL REPORT 2009

  • Page 2
    ...OM PA NY ( NY S E : W P O ) is a diversified education and media company committed to building long-term value for our shareholders. REVENUE BY PRINCIPAL OPERATIONS EDUCATION 58% CABLE TELEVISION 16% NEWSPAPER PUBLISHING 15% TELEVISION BROADCASTING 6% MAGAZINE PUBLISHING 4% OTHER BUSINESSES 1%

  • Page 3
    ... 9.78 6.87 30.19 33.68 32.59 RETURN ON AVERAGE COMMON SHAREHOLDERS' EQUITY 09 08 07 06 05 3.1%* 2.1%* 9.5%* 11.7%* 12.4% *Computed on a comparable basis, excluding the impact of the adjustment for pensions and other postretirement plans on average common shareholders' equity. 1 2009 ANNUAL REPORT

  • Page 4
    ...while reporting only $91 million of net income? The answer to this question is astonishingly complicated. We are not a very large company (less than Fortune 500 size), but for years, our income statement has offered a reference book of one-time charges. We have closed businesses; we have sold 2 THE...

  • Page 5
    ... in cost at the Post and Newsweek have been greatly aided by our overfunded pension plan, a rare asset these days.) That's one big reason cash results are better than reported income. $33.2 million in Kaplan restructuring charges. $24.9 million of these were related to the closing of Score, an...

  • Page 6
    ... and delivery of our content. technology killed it. (The company that made the software was very slow to update it; anyway, by 2009, most children had plenty of computer access in school and at home.) n with us; third, these charges are one-way only. It's only good accounting, but if acquisitions...

  • Page 7
    ... board, in advertising (and customer experience) as much as in news. And we need cost control. KAPLAN Kaplan had a remarkable year, growing its profits despite restructuring charges of $33.2 million. The Post Company is increasingly centered around Kaplan Higher Education, which last year accounted...

  • Page 8
    ...-time job, we help them find it. If they don't show up for class, we call. Some need help learning to study. Some need different hours (a Detroit campus runs classes from 6 a.m. through the night shift). At Kaplan University, again, our student is not the traditional college student. The average...

  • Page 9
    ... in our reshaped Company: the part of Kaplan outside KHE is now as big in revenues as the Post, Newsweek and our television stations combined. n the tailoring of education to the needs of working adults; and n the export of western-style higher education to international students who are hungry...

  • Page 10
    ...under Company news veteran Skip Valet) showed significant ratings improvement; progress was slower, but real, in Houston. advertising has traditionally accounted for roughly 25% to 30% of local TV station revenues, and in early 2009 there simply was no automotive advertising. 8 THE WASHINGTON POST...

  • Page 11
    ... Jon Meacham and Fareed Zakaria - reshaped the magazine and its audience throughout 2009. Results were terrible early in the year, but gradually improved. As we planned, the magazine's circulation is less than it was a year ago, but its readers are paying more for it, and advertisers appear to be...

  • Page 12

  • Page 13
    ... Employer Identification No.) 1150 15th St., N.W., Washington, D.C. (Address of principal executive offices) 20071 (Zip Code) Registrant's Telephone Number, Including Area Code: (202) 334-6000 Securities Registered Pursuant to Section 12(b) of the Act: Title of each class Class B Common Stock...

  • Page 14
    ... Statement Schedules ...SIGNATURES ...INDEX TO FINANCIAL INFORMATION ...Management's Discussion and Analysis of Results of Operations and Financial Condition (Unaudited) ...Financial Statements: Management's Report on Internal Control Over Financial Reporting ...Report of Independent Registered...

  • Page 15
    ... television systems, newspaper publishing (principally The Washington Post), television broadcasting (through the ownership and operation of six television broadcast stations) and magazine publishing (Newsweek). Information concerning the consolidated operating revenues, consolidated income from...

  • Page 16
    ... and Paralegal Studies • Nursing • Political Science and Public and Environmental Policy • Criminal Justice • Health Sciences • Information Systems and Technology • Nursing Kaplan University and Kaplan Higher Education Campuses enrollment at December 31, 2009, 2008 and 2007 totaled by...

  • Page 17
    ... and 2005 were as follows: Cohort Year Ended September 30 2007 2006 2005 Kaplan University ...Total Kaplan Higher Education ... 13.3% 9.2% 5.9% 17.8% 14.7% 9.7% For the 2007 cohort year, four reporting units had a cohort default rate of 25% or more. For the 2008 cohort year, which has been issued...

  • Page 18
    ...in Kaplan Higher Education) would lose its Title IV eligibility for at least one year if more than 90% of the institution's receipts for any fiscal year were derived from Title IV programs, as calculated on a cash basis in accordance with the Federal Higher Education Act and applicable Department of...

  • Page 19
    ... that the Department of Education's final report will not have a significant adverse effect on Kaplan's ability to continue to operate these schools. In September 2009, the Department of Education began a Program Review of Kaplan University at its offices in Fort Lauderdale, FL. Kaplan University is...

  • Page 20
    ... Kaplan Europe also includes three higher education institutions located in the U.K. and Ireland. These institutions are Dublin Business School, Holborn College and Kaplan Open Learning. At year-end, these institutions had an aggregate of approximately 8,050 students. 6 THE WASHINGTON POST COMPANY

  • Page 21
    ... 3,850 students. Cable Television Operations Through its subsidiary Cable ONE, Inc. ("Cable ONE"), the Company owns and operates cable television systems that provide video, Internet and phone service to subscribers in 19 midwestern, western and southern states. At the end of 2009, Cable...

  • Page 22
    ... as pay-per-view and per-channel premium program services, digital video, cable modem and digital telephone services-and for advertising currently are exempt from regulation. "Must-Carry" and Retransmission Consent. Federal law provides that a commercial television broadcast station may, subject to...

  • Page 23
    ... fee costs or by causing Cable ONE to reduce or discontinue carriage of certain broadcast signals that it currently carries on a discretionary basis. Telephone Company Competition. Federal law permits telephone companies also to offer video programming services. Over the past decade, telephone...

  • Page 24
    ... response to the Supreme Court's decision, the FCC ruled that a telephone company's offering of digital subscriber line ("DSL") Internet access service is also an "information service." Cable ONE currently offers broadband Internet access service on virtually all of its cable systems and is the sole...

  • Page 25
    ... to utilize its spectrum. Voice Services Voice Over Internet Protocol ("VoIP"). Cable companies, including Cable ONE and others, offer telephone service using VoIP, which permits users to make telephone calls over broadband communications networks, including the Internet. Federal law preempts state...

  • Page 26
    ... daily and Sunday newspaper primarily distributed by home delivery in the Washington, DC, metropolitan area, including large portions of Maryland and northern Virginia. The Post's two primary sources of revenue are advertising and subscription fees, which accounted for 68% and 29% of its total...

  • Page 27
    ... centered on interacting with The Washington Post in print and online, shopping at participating advertisers and helping the community. The Post closed its printing plant located in Prince George's County, MD, in July 2009. Printing operations have been consolidated in the Fairfax County, VA...

  • Page 28
    national car and apartment rental websites (cars.com and apartments.com). In addition, washingtonpost.com launched Trulia real estate search functionality in April 2009. Trulia enables readers to search real estate listings online using selfselected search criteria. WP Company shares select news ...

  • Page 29
    ...of wire service copy, contributions from freelance writers and photographers and stories produced by the newspaper's own editorial staff. Television Broadcasting Post-Newsweek Stations, Inc. ("PNS"), a subsidiary of the Company, owns six television stations located in Houston, TX; Detroit, MI; Miami...

  • Page 30
    ... channels of standard-definition television programming ("multicasting"), and subscription video and data services known as "ancillary and supplementary" services. PNS, along with other broadcasting companies, has been actively pursuing the use of digital spectrum to provide mobile video service...

  • Page 31
    ... air a specified number of hours of programming intended to serve the educational and informational needs of children and to complete reports on a quarterly basis concerning the children's programming that they broadcast. In addition, the FCC requires stations to limit the amount of advertising that...

  • Page 32
    ... specific market areas or demographic groups. Newsweek is sold through subscription mail order sales derived from a number of sources, principally direct-mail promotion, as well as online and on newsstands. Newsweek's published advertising rates are based on its average weekly circulation rate base...

  • Page 33
    ... The Daily Herald Company's plant in Everett, WA, while The Gazette Newspapers, Southern Maryland Newspapers, Express (since March 30, 2009) and the Fairfax County Times are printed at the commercial printing facilities owned by Post- Newsweek Media, Inc. Ten military papers, three free weeklies and...

  • Page 34
    ...outlying areas and nationally circulated newspapers), and from websites, television, radio, magazines and other advertising media, including direct-mail advertising. Express similarly competes with various other advertising media in its service area, including both daily and weekly free-distribution...

  • Page 35
    ...community newspaper, which also has a weekly paid-circulation edition; and The Frederick News- Post and Carroll County Times, daily paid-circulation community newspapers. The Southern Maryland Newspapers circulate in southern Prince George's County and in Charles, Calvert and St. Mary's counties, MD...

  • Page 36
    ... been Chief Executive Officer of Kaplan Professional, responsible for Kaplan's professional businesses in financial services, real estate, technology and engineering in the United States and the United Kingdom. Mr. Jones has spent 20 years at The Washington Post Company and Kaplan, serving in...

  • Page 37
    ... referred to in Item 10 of this Annual Report on Form 10-K are each available on the Company's website; printed copies of such documents may be obtained by any stockholder upon written request to the Secretary of the Company at 1150 15th Street, NW, Washington, DC 20071. Item 1A. Risk Factors. The...

  • Page 38
    ... programs, and other changes to Title IV eligibility requirements for institutions, programs and students. The changes ultimately proposed to the Title IV regulations could adversely affect, among other things, Kaplan's ability to retain admissions and financial aid 24 THE WASHINGTON POST COMPANY

  • Page 39
    ... return on a timely basis unearned Title IV funds disbursed to students who withdraw from a program of study prior to completion. These funds must be returned in a timely manner, generally within 45 days of the date the school determines that the student has withdrawn. Under Department of Education...

  • Page 40
    ... amount of at least 10% to 50% of the institution's annual Title IV participation for its most recent fiscal year. The Department of Education has measured the compliance of Kaplan's Higher Education division's schools based on the composite score of the division. If one or more of the institutions...

  • Page 41
    ... obtain news, entertainment, classified listings and local shopping information from Internet-based or other media to the exclusion of the Company's print publications and broadcasts. • Changing Perceptions About the Effectiveness of Publishing and Television Broadcasting in Delivering Advertising...

  • Page 42
    ... Unresolved Staff Comments. Not applicable. Item 2. Properties. Directly or through subsidiaries, Kaplan owns a total of 11 properties: a 30,000-square-foot six-story building located at 131 West 56th Street in New York City, which serves as an educational center primarily for international students...

  • Page 43
    ... in St. Mary's County used by editorial and sales staff and office space in Montgomery and Charles counties, MD. In addition to these owned properties, Post- Newsweek Media leases editorial and sales office space in Alexandria, VA, and in Frederick, Carroll, Calvert and Prince George's counties, MD...

  • Page 44
    ... United States of America ex rel. Victoria Gatsiopoulos et al. v. ICM School of Business & Medical Careers et al. (unsealed September 2, 2008); and United States of America ex rel. Charles Jajdelski v. Kaplan Higher Education Corp. et al. (unsealed January 6, 2009). 30 THE WASHINGTON POST COMPANY

  • Page 45
    ... security holders ...Total ... This table does not include information relating to restricted stock grants awarded under The Washington Post Company Incentive Compensation Plan, which plan has been approved by the stockholders of the Company. At January 3, 2010, there were 9,565 shares of restricted...

  • Page 46
    ... Meredith Corporation, The New York Times Company and The Washington Post Company and also is weighted by market capitalization. The custom peer group of education companies includes American Public Education, Apollo Group Inc., Capella Education Co., Career Education Corp., Corinthian Colleges, Inc...

  • Page 47
    ... rate applicable to the Notes was 100 basis points lower than the Notes' stated interest rate, the fair value of the Notes at such date would have been approximately $427,360,000. Foreign Exchange Rate Risk The Company is exposed to foreign exchange rate risk at its Kaplan and Newsweek international...

  • Page 48
    ...Financial Statements titled "Summary of Quarterly Operating Results and Comprehensive Income (Unaudited)," which are included in this Annual Report on Form 10-K and listed in the index to financial information on page 37 hereof. Item 9. Changes in and Disagreements With Accountants on Accounting and...

  • Page 49
    .... Principal Accounting Fees and Services. The information contained under the heading "Audit Committee Report" in the definitive Proxy Statement for the Company's 2010 Annual Meeting of Stockholders is incorporated herein by reference thereto. PART IV Item 15. Exhibits, Financial Statement Schedules...

  • Page 50
    ... S. Jones and Veronica Dillon, and each of them, to sign all reports required to be filed by the Registrant pursuant to the Securities Exchange Act of 1934 on behalf of the above-named directors and officers has been filed with the Securities and Exchange Commission. 36 THE WASHINGTON POST COMPANY

  • Page 51
    INDEX TO FINANCIAL INFORMATION THE WASHINGTON POST COMPANY Management's Discussion and Analysis of Results of Operations and Financial Condition (Unaudited) ...Financial Statements: Management's Report on Internal Control Over Financial Reporting ...Report of Independent Registered Public Accounting...

  • Page 52
    ... classified, zones and retail advertising. This follows a 17% print advertising decline at The Washington Post in 2008 and a 13% decline in 2007. Circulation volume also continued a downward trend, although revenues increased 7% due to home-delivery price increases and significant single-copy sales...

  • Page 53
    ... retirement program expense at The Washington Post newspaper, the corporate office and Newsweek (after-tax impact of $67.2 million, or $7.07 per share); • $22.3 million in accelerated depreciation related to the planned closing of The Washington Post's College Park, MD, plant (after-tax impact of...

  • Page 54
    .... A summary of Kaplan's operating results reported under this structure for 2009 compared to 2008 is as follows: (in thousands) Revenue Higher education ...Test preparation, excluding Score ...Score ...Kaplan international ...Kaplan ventures ...Kaplan corporate ...Intersegment elimination ...2009...

  • Page 55
    ...'s pension plans. The Post closed its College Park, MD, printing plant in July 2009 and consolidated its printing operations in Springfield, VA. The Post is also in the process of consolidating certain other operations in Washington, DC. In connection with these activities, accelerated depreciation...

  • Page 56
    ...retirement program expense in 2008 totaled $28.3 million, also funded primarily from the assets of the Company's pension plans. Additional cost savings initiatives were implemented at Newsweek's operations in 2009, and $8.4 million in severance and lease termination costs were recorded. The division...

  • Page 57
    ... retirement program expense at The Washington Post newspaper, the corporate office and Newsweek (after-tax impact of $67.2 million, or $7.07 per share); • $22.3 million in accelerated depreciation related to the planned closing of The Washington Post's College Park, MD, plant (after-tax impact of...

  • Page 58
    ...of the Company's reporting segments. A summary of Kaplan's operating results reported under this new structure for 2008 compared to 2007 is as follows: (in thousands) Revenue Higher education ...Test preparation, excluding Score ...Score ...Kaplan international ...Kaplan ventures ...Kaplan corporate...

  • Page 59
    ...mostly from the assets of the Company's pension plans. Also, the Post made plans to close its College Park, MD, printing plant in the second half of 2009. The Company reassessed the useful life of the presses and the fair value of the plant building and recorded accelerated depreciation beginning in...

  • Page 60
    ... 2007, including the pension credit. Excluding the pension credit, the division would have reported an operating loss in 2007. Other Businesses and Corporate Office. In October 2007, the Company acquired the outstanding stock of CourseAdvisor, Inc., an online lead generation provider. (CourseAdvisor...

  • Page 61
    ... management solutions for organizations in the pharmaceutical, medical device, health care, energy and manufacturing sectors; and Kaplan International's acquisition of the education division of Financial Services Institute of Australasia. In October 2007, the Company acquired the outstanding stock...

  • Page 62
    .... At January 3, 2010, the Company had authorization from the Board of Directors to purchase up to 100,916 shares of Class B common stock. In January 2010, the Board of Directors increased the authorization to a total of 750,000 shares of Class B common stock. The annual dividend rate for 2010 was...

  • Page 63
    ...corporate discounts, scholarships and employee tuition discounts. In 2009, Kaplan Higher Education modified its method of recognizing revenue ratably over the period of instruction as services are delivered to students from a weekly convention to a daily convention, on a prospective basis. At Kaplan...

  • Page 64
    ...) Education Higher education ...Test preparation ...Kaplan international ...Cable television ...Television broadcasting ...Total ...Goodwill $ 335.2 236.8 433.0 85.5 203.2 $1,293.7 As of November 30, 2009, in connection with the Company's annual impairment testing, the Company used a discounted...

  • Page 65
    ... $22.3 million for 2009, 2008 and 2007, respectively. The Company's pension benefit costs are actuarially determined and are impacted significantly by the Company's assumptions related to future events, including the discount rate, expected return on plan assets and rate of compensation increases...

  • Page 66
    ...quarterly basis. In November 2008, Kaplan's then chief executive officer resigned. The executive exercised 40,805 Kaplan stock options, sold 6,572 Kaplan shares and forfeited 21,526 unvested Kaplan stock options at the time of his resignation. A Kaplan senior manager continues to hold the remaining...

  • Page 67
    ... accepted accounting principles, and that receipts and expenditures of the Company are being made only in accordance with authorizations of management and directors of the Company; and (iii) provide reasonable assurance regarding prevention or timely detection of unauthorized acquisition, use or...

  • Page 68
    REPORT OF INDEPENDENT REGISTERED PUBLIC ACCOUNTING FIRM To the Board of Directors and Shareholders of The Washington Post Company: In our opinion, the consolidated financial statements referred to under Item 15 (1) on page 35 and listed in the index on page 37 present fairly, in all material ...

  • Page 69
    THE WASHINGTON POST COMPANY CONSOLIDATED STATEMENTS OF INCOME January 3, 2010 Fiscal Year Ended December 28, December 30, 2008 2007 (in thousands, except per share amounts) Operating Revenues Education ...Advertising ...Circulation and subscriber ...Other ... $2,636,638 858,109 932,402 142,582 4,...

  • Page 70
    ...-for-sale securities ...Unrealized loss on pensions and other postretirement plans ...Cost of 10,733,187 and 10,634,768 shares of Class B common stock held in treasury ...Total The Washington Post Company Common Shareholders' Equity ...Noncontrolling Interest ...Total Shareholders' Equity ...Total...

  • Page 71
    ... of distributions ...Provision (benefit) for deferred income taxes ...Net loss on sale or write-down of property, plant and equipment ...Change in assets and liabilities: Decrease (increase) in accounts receivable, net ...Decrease (increase) in inventories ...Increase in accounts payable and accrued...

  • Page 72
    THE WASHINGTON POST COMPANY CONSOLIDATED STATEMENTS OF CHANGES IN COMMON SHAREHOLDERS' EQUITY Unrealized Cumulative Unrealized Gain (Loss) Foreign Gain on on Pensions Currency Available- and Other Translation for-Sale Postretirement Adjustment Securities Plans (in thousands) Class A Class B ...

  • Page 73
    ...full editorial content of The Washington Post. Through the Company's other newspaper publishing businesses, the Company also publishes weekly publications and tabloids distributed nationally and within the Washington, DC, metropolitan area and produces other websites and online magazines. Television...

  • Page 74
    ...discounts. At Kaplan's Test Preparation and International divisions, estimates of average student course length are developed for each course, and these estimates are evaluated on an ongoing basis and adjusted as necessary. Online access revenue is recognized ratably 60 THE WASHINGTON POST COMPANY

  • Page 75
    ... from subscriber fees for video, high-speed Internet and phone services, and from advertising. Cable subscriber revenue is recognized monthly as services are delivered. Advertising revenue is recognized when the commercials or programs are aired. Newspaper and magazine publishing and television...

  • Page 76
    ... each reporting date. The Company recognizes the expense over the requisite service period, which is generally the vesting period of the award. Earnings Per Share-Earnings per share is calculated under the two-class method. Basic earnings per share is calculated using the weighted average number of...

  • Page 77
    ... at "Net income attributable to The Washington Post Company." In June 2008, the FASB issued new guidance for the calculation of earnings per share. The guidance clarifies that unvested sharebased payment awards that contain nonforfeitable rights to dividends or dividend equivalents (whether paid...

  • Page 78
    ... the date of acquisition; the purchase price allocations mostly comprised goodwill and other intangibles, and property, plant and equipment. Any additional purchase consideration related to a 2008 acquisition is expected to be recorded as goodwill. During 2009, the Company acquired three businesses...

  • Page 79
    ... management solutions for organizations in the pharmaceutical, medical device, health care, energy and manufacturing sectors; and Kaplan International's acquisition of the education division of Financial Services Institute of Australasia. In October 2007, the Company acquired the outstanding stock...

  • Page 80
    ... 31,922 5,324 7,164 5,100 $67,468 $30,202 39,004 10,101 13,026 1,927 $94,260 (in thousands) Amortized intangible assets: Noncompete agreements ...Student and customer relationships ...Databases and technology ...Trade names and trademarks ...Other ... 66 THE WASHINGTON POST COMPANY

  • Page 81
    ... $26.9 million in deferred state income taxes, net of U.S. Federal income tax. The Company has also established approximately Results for 2009 include $3.1 million of prior-year tax benefits. Results for 2008 include a $4.6 million provision to return adjustment from 2007. Results for 2007...

  • Page 82
    ...$ - December 28, 2008 $ 150.0 - 399.9 3.9 553.8 (153.8) $ 400.0 396.2 - 3.1 399.3 (3.1) $396.2 At December 28, 2008, the average interest rate on the Company's outstanding commercial paper borrowings was 0.2%. The Company's other indebtedness at January 3, 2010 and 68 THE WASHINGTON POST COMPANY

  • Page 83
    ... from the Board of Directors to purchase up to 100,916 shares of Class B common stock. In January 2010, the Board of Directors increased the authorization to a total of 750,000 shares of Class B common stock. Stock Awards. In 1982, the Company adopted a long-term incentive compensation plan, which...

  • Page 84
    ...on a straight-line basis over a weighted average period of 1.9 years. Stock Options. The Company's employee stock option plan reserves 1,900,000 shares of the Company's Class B common stock for options to be granted under the plan. The purchase price of the shares covered by an option cannot be less...

  • Page 85
    ...2009 Number Average of Option Shares Price Number of Shares 2008 Average Option Price Number of Shares 2007 Average Option Price (in thousands, except per share amounts) Net income available for common shares ...Weighted average shares outstanding - basic ...Effect of dilutive shares: Stock options...

  • Page 86
    ..., future estimated benefit payments, excluding charges for early retirement programs, are as follows: (in millions) 2010 ...2011 ...2012 ...2013 ...2014 ...2015-2019 ...Pension Plans $ 54.2 $ 53.2 $ 54.8 $ 55.9 $ 58.2 $323.6 SERP $ 3.6 $ 3.7 $ 4.3 $ 4.4 $ 4.6 $26.3 72 THE WASHINGTON POST COMPANY

  • Page 87
    ...The costs for the Company's defined benefit pension plans are actuarially determined. Below are the key assumptions utilized to determine periodic cost for the years ended January 3, 2010, December 28, 2008 and December 30, 2007: Pension Plans 2009 2008 2007 Discount rate ...5.75% Expected return on...

  • Page 88
    ... be invested in international stocks, and no less than 9% of the assets could be invested in fixed-income securities. None of the assets is managed internally by the Company. In determining the expected rate of return on plan assets, the Company considers the relative weighting of plan assets, the...

  • Page 89
    ... estimated benefit payments, net of Medicare subsidy, are as follows: (in millions) 2010 ...2011 ...2012 ...2013 ...2014 ...2015-2019 ...Postretirement Plans $ 5.4 $ 5.6 $ 5.9 $ 6.2 $ 6.4 $36.4 The costs for the Company's postretirement plans are actuarially determined. The discount rates utilized...

  • Page 90
    ...) 2010 ...2011 ...2012 ...2013 ...2014 ...Thereafter ...$140,665 119,537 104,202 91,206 75,890 310,135 $841,635 Litigation and Legal Matters. Kaplan, Inc., a subsidiary of the Company, is a party to a previously disclosed class action antitrust lawsuit filed on April 29, 2005, by purchasers of BAR...

  • Page 91
    ... or certification with the applicable state governmental bodies, accrediting agencies and the Department of Education. In accordance with Department of Education regulations, a number of the schools in Kaplan's Higher Education division are combined into groups of two or more schools for the purpose...

  • Page 92
    ... under The Washington Post Company Supplemental Executive Retirement Plan, which are included in accrued compensation and related benefits. For assets that are measured using quoted prices in active markets, the total fair value is the published market price per unit multiplied by the number of...

  • Page 93
    ...systems offering video, Internet, phone and other services to subscribers in midwestern, western and southern states. The principal source of revenue is monthly subscription fees charged for services. Newspaper publishing includes the publication of newspapers in the Washington, DC, area and Everett...

  • Page 94
    ...Income before income taxes ...Depreciation of property, plant and equipment Education ...Cable television ...Newspaper publishing ...Television broadcasting ...Magazine publishing ...Other businesses and corporate office ...Amortization of intangible assets Education ...Cable television ...Newspaper...

  • Page 95
    ... ...Depreciation of property, plant and equipment Higher education ...Test preparation ...Kaplan international ...Kaplan ventures ...Kaplan corporate and other ...Amortization of intangible assets ...Impairment of goodwill and other long-lived assets ...Kaplan stock-based incentive compensation...

  • Page 96
    ... before income taxes ...(Benefit) provision for income taxes ...Net (loss) income ...Net loss (income) attributable to noncontrolling interests ...Net (loss) income attributable to The Washington Post Company ...Redeemable preferred stock dividends ...Net (loss) income available for common shares...

  • Page 97
    ...taxes ...Provision (benefit) for income taxes ...Net income (loss) ...Net (income) loss attributable to noncontrolling interests ...Net income (loss) attributable to The Washington Post Company ...Redeemable preferred stock dividends ...Net income (loss) available for common shares ...Basic earnings...

  • Page 98
    ...; and at two of the Company's equity affiliates ($4.1 million, $41.9 million and $69.6 million in the second, third and fourth quarters, respectively) ...Charge of $13.9 million for accelerated depreciation related to the planned closing of The Washington Post's College Park, MD, plant ($0.7 million...

  • Page 99
    [THIS PAGE INTENTIONALLY LEFT BLANK] 2009 FORM 10-K 85

  • Page 100
    ... program expense at The Washington Post newspaper, the corporate office and Newsweek • $13.9 million ($1.48 per share) in accelerated depreciation related to the planned closing of The Washington Post's College Park, MD, plant • charges of $6.8 million ($0.72 per share) in connection with the...

  • Page 101
    ...) on the sale of the Company's 50% interest in the International Herald Tribune • gain of $25.5 million ($2.66 per share) on sale of land at The Washington Post newspaper • charge of $20.8 million ($2.18 per share) for early retirement programs at The Washington Post newspaper • Kaplan stock...

  • Page 102
    [THIS PAGE INTENTIONALLY LEFT BLANK] 88 THE WASHINGTON POST COMPANY

  • Page 103
    ...28, 2009).* The Washington Post Company Stock Option Plan as amended and restated effective May 31, 2003 (incorporated by reference to Exhibit 10.1 to the Company's Quarterly Report on Form 10-Q for the quarter ended September 28, 2003).* The Washington Post Company Supplemental Executive Retirement...

  • Page 104
    ... COMPANY washpostco.com EDUCATION The Gazette Gazette.net Southern Maryland Newspapers SoMdNews.com Fairfax County Times FairfaxTimes.com Comprint Military Publications DCmilitary.com Comprint Printing Greater Washington Publishing gwpi.net Apartment Showcase ApartmentShowcase.com New Homes Guide...

  • Page 105
    ... 9 a.m., at The Washington Post Company, 1150 15th Street, NW, Washington, DC. COMMON STOCK PRICES AND DIVIDENDS High and low sales prices during the past two years: 2009 Quarter High Low High 2008 Low Transfers by certified mail: Computershare Investor Services 250 Royall Street Canton, MA 02021...

  • Page 106
    THE WASHINGTON POST COMPANY 1150 15th Street, NW Washington, DC 20071 (202) 334-6000 washpostco.com