Washington Post 2010 Annual Report Download - page 57

Download and view the complete annual report

Please find page 57 of the 2010 Washington Post annual report below. You can navigate through the pages in the report by either clicking on the pages listed below, or by using the keyword search tool below to find specific information within the annual report.

Page out of 118

  • 1
  • 2
  • 3
  • 4
  • 5
  • 6
  • 7
  • 8
  • 9
  • 10
  • 11
  • 12
  • 13
  • 14
  • 15
  • 16
  • 17
  • 18
  • 19
  • 20
  • 21
  • 22
  • 23
  • 24
  • 25
  • 26
  • 27
  • 28
  • 29
  • 30
  • 31
  • 32
  • 33
  • 34
  • 35
  • 36
  • 37
  • 38
  • 39
  • 40
  • 41
  • 42
  • 43
  • 44
  • 45
  • 46
  • 47
  • 48
  • 49
  • 50
  • 51
  • 52
  • 53
  • 54
  • 55
  • 56
  • 57
  • 58
  • 59
  • 60
  • 61
  • 62
  • 63
  • 64
  • 65
  • 66
  • 67
  • 68
  • 69
  • 70
  • 71
  • 72
  • 73
  • 74
  • 75
  • 76
  • 77
  • 78
  • 79
  • 80
  • 81
  • 82
  • 83
  • 84
  • 85
  • 86
  • 87
  • 88
  • 89
  • 90
  • 91
  • 92
  • 93
  • 94
  • 95
  • 96
  • 97
  • 98
  • 99
  • 100
  • 101
  • 102
  • 103
  • 104
  • 105
  • 106
  • 107
  • 108
  • 109
  • 110
  • 111
  • 112
  • 113
  • 114
  • 115
  • 116
  • 117
  • 118

Inc., a leading global provider of educational services to individuals, schools and businesses. The graph reflects the
investment of $100 on December 31, 2005, in the Company’s Class B Common Stock, the Standard & Poor’s 500
Stock Index, the Standard & Poor’s 1500 Publishing Index and the custom peer group index of education companies. For
purposes of this graph, it has been assumed that dividends were reinvested on the date paid in the case of the Company
and on a quarterly basis in the case of the Standard & Poor’s 500 Index, the Standard & Poor’s 1500 Publishing Index
and the custom peer group index of education companies.
$50
$100
$150
COMPARISON OF CUMULATIVE FIVE YEAR TOTAL RETURN
$0
2005 2006 2007 2008 2009 2010
COMPARISON OF CUMULATIVE FIVE YEAR TOTAL RETURN
The Washington Post Company S&P 500 Index S&P 1500 Publishing Index Peer Group
December 31 2005 2006 2007 2008 2009 2010
The Washington Post Company ................................ 100 98.46 105.61 52.85 60.75 62.00
S&P 500 Index ............................................. 100 115.79 122.16 76.96 97.33 111.99
S&P 1500 Publishing Index .................................... 100 111.67 88.23 38.76 58.60 63.01
Education Peer Group ........................................ 100 83.51 130.58 139.15 129.37 94.99
Item 6. Selected Financial Data.
See the information for the years 2006 through 2010 contained in the table titled “Ten-Year Summary of Selected
Historical Financial Data,” which is included in this Annual Report on Form 10-K and listed in the index to financial
information on page 45 hereof (with only the information for such years to be deemed filed as part of this Annual Report
on Form 10-K).
Item 7. Management’s Discussion and Analysis of Financial Condition and Results of Operations.
See the information contained under the heading “Management’s Discussion and Analysis of Results of Operations and
Financial Condition,” which is included in this Annual Report on Form 10-K and listed in the index to financial information
on page 45 hereof.
Item 7A. Quantitative and Qualitative Disclosures About Market Risk.
The Company is exposed to market risk in the normal course of its business due primarily to its ownership of marketable
equity securities, which are subject to equity price risk; to its borrowing and cash-management activities, which are
subject to interest rate risk; and to its foreign business operations, which are subject to foreign exchange rate risk. Neither
the Company nor any of its subsidiaries is a party to any derivative financial instruments.
Equity Price Risk
The Company has common stock investments in two publicly traded companies (as discussed in Note F to the Company’s
Consolidated Financial Statements) that are subject to market price volatility. The fair value of these common stock
investments totaled $340,910,000 at January 2, 2011.
Interest Rate Risk
The Company’s long-term debt consists of $400,000,000 principal amount of 7.25% unsecured notes due February 1,
2019 (the “Notes”). At January 2, 2011, the aggregate fair value of the Notes, based upon quoted market prices, was
$457,200,000. An increase in the market rate of interest applicable to the Notes would not increase the Company’s
2010 FORM 10-K 41