Washington Post 2010 Annual Report Download - page 99

The Company’s pension plan assets measured at fair value on a
recurring basis were as follows:
(in thousands) Level 1 Level 2 Total
At January 2, 2011:
Cash equivalents and other
short-term investments .... $ 207,929 $68,091 $ 276,020
Equity securities
U.S. equities ............. 1,090,693 — 1,090,693
International equities ...... 250,604 — 250,604
Fixed-income securities
U.S. Federal agency
mortgage-backed
securities ............. — 1,699 1,699
Corporate debt securities .. — 15,854 15,854
Other fixed income ....... 7,106 8,338 15,444
Total investments ........... $ 1,556,332 $93,982 $1,650,314
Receivables ............... 1,644
Total .................... $1,651,958
At January 3, 2010:
Cash equivalents and other
short-term investments ...... $ 189,986 $42,419 $ 232,405
Equity securities
U.S. equities ............ 1,061,957 — 1,061,957
International equities ...... 115,153 — 115,153
Fixed-income securities
U.S. Federal agency
mortgage-backed
securities ............. — 4,122 4,122
Corporate debt securities . . . — 17,270 17,270
Other fixed income ....... — 7,987 7,987
Total investments ........... $1,367,096 $71,798 $1,438,894
Cash ................... 247
Receivables ............... 1,675
Total .................... $1,440,816
Cash equivalents and other short-term investments—These investments
are primarily held in U.S. Treasury securities and registered money
market funds. These investments are valued using a market approach
based on the quoted market prices of the security, or inputs that
include quoted market prices for similar instruments, and are
classified as either Level 1 or Level 2 in the valuation hierarchy.
U.S. equities—These investments are held in common and preferred
stock of U.S. corporations and American Depositary Receipts (ADRs)
traded on U.S. exchanges. Common and preferred shares and
ADRs are traded actively on exchanges, and price quotes for these
shares are readily available. These investments are classified as
Level 1 in the valuation hierarchy.
International equities—These investments are held in common and
preferred stock issued by non-U.S. corporations. Common and
preferred shares are traded actively on exchanges, and price
quotes for these shares are readily available. These investments
are classified as Level 1 in the valuation hierarchy.
U.S. Federal agency mortgage-backed securities—These
investments consist of fixed-income securities issued by Federal
Agencies and are valued using a bid evaluation process, with bid
data provided by independent pricing sources. These investments
are classified as Level 2 in the valuation hierarchy.
Corporate debt securities—These investments consist of fixed-income
securities issued by U.S. corporations and are valued using a bid
evaluation process, with bid data provided by independent pricing
sources. These investments are classified as Level 2 in the valuation
hierarchy.
Other fixed income—These investments consist of fixed-income
securities issued by the U.S. Treasury and in private placements and
are valued using a quoted market price or bid evaluation process, with
bid data provided by independent pricing sources. These investments
are classified as Level 1 or Level 2 in the valuation hierarchy.
Other Postretirement Plans. The following table sets forth
obligation, asset and funding information for the Company’s other
postretirement plans at January 2, 2011 and January 3, 2010:
Postretirement Plans
(in thousands) 2010 2009
Change in Benefit Obligation
Benefit obligation at beginning of year .... $ 79,031 $ 75,402
Service cost ........................ 3,275 3,871
Interest cost ........................ 3,934 4,168
Amendments ....................... (6,336) (1,399)
Actuarial (gain) loss .................. (3,073) 10,564
Curtailment gain .................... (3,630) (9,073)
Benefits paid, net of Medicare subsidy .... (4,383) (4,502)
Benefit obligation at end of year ........ $ 68,818 $ 79,031
Change in Plan Assets
Fair value of assets at beginning of year . . . $—$—
Employer contributions ................ 4,383 4,612
Benefits paid ....................... (4,383) (4,612)
Fair value of assets at end of year ....... $—$—
Funded status ....................... $(68,818) $(79,031)
The amounts recognized in the Company’s Consolidated Balance
Sheets for its other postretirement plans at January 2, 2011 and
January 3, 2010 are as follows:
Postretirement Plans
(in thousands) 2010 2009
Current liability ..................... $ (4,476) $ (5,359)
Noncurrent liability ................... (64,342) (73,672)
Recognized liability .................. $(68,818) $(79,031)
The Company recorded a curtailment gain of $8.5 million in 2010
due to the sale of Newsweek; the gain is included in discontinued
operations.
In 2009, the Company made changes to the cable division’s
retiree health care benefits program, resulting in a $7.7 million
curtailment gain. Also in 2009, the Company eliminated life
insurance benefits for new retirees on or after January 1, 2009,
resulting in a $0.7 million curtailment gain.
The discount rates utilized for determining the benefit obligation
at January 2, 2011 and January 3, 2010 for the postretirement
plans were 4.60% and 5.25%, respectively. The assumed health
care cost trend rate used in measuring the postretirement benefit
obligation at January 2, 2011 was 9.5% for pre-age 65,
decreasing to 5.0% in the year 2019 and thereafter. The assumed
health care cost trend rate used in measuring the postretirement
2010 FORM 10-K 83