Washington Post 2011 Annual Report Download - page 97

Multiemployer Pension Plans. The Company contributes to a number
of multiemployer defined benefit pension plans under the terms of
collective-bargaining agreements that cover certain union-represented
employees. The risks of participating in these multiemployer pension
plans are different from single-employer plans as follows:
• Assets contributed to the multiemployer pension plan by one
employer may be used to provide benefits to employees of other
participating employers.
• If a participating employer stops contributing to the plan, the
unfunded obligations of the plan may be borne by the remaining
participating employers.
• If the Company chooses to stop participating in some of its
multiemployer pension plans, the Company may be required to
pay those plans an amount based on the underfunded status of
the plan, referred to as a withdrawal liability.
The Company, through The Washington Post and The Daily Herald
newspapers, contributed to the CWA/ITU Negotiated Pension Plan
(Employer Identification Number – 13-6212879, Plan Number 001)
on behalf of mailers, helpers and utility mailers. As of December 31,
2010 and 2009, the CWA/ITU Negotiated Pension Plan (the Plan)
was in critical (red) status as currently defined by the Pension Protection
Act of 2006, and a rehabilitation plan was in effect. There are no
surcharges for employers who have adopted the rehabilitation plan,
and there is no minimum contribution requirement other than the normal
requirement to contribute as provided in the collective bargaining
agreement. The Company’s collective bargaining agreement expired
on May 18, 2003. The Company’s contributions to the Plan
amounted to $0.1 million in 2011, $0.6 million in 2010 and
$0.7 million in 2009. The Washington Post was listed in the Plan’s
Form 5500 as providing more than 5% of the total contribution to the
Plan for the years ended December 31, 2010 and 2009.
In 2010, The Washington Post notified the union and the Plan of its
unilateral withdrawal from the Plan effective November 30, 2010. In
connection with this action, The Washington Post recorded a $20.4
million charge in 2010 based on an estimate of the withdrawal
liability. In 2011, the Daily Herald notified the union and the Plan of its
unilateral withdrawal from the Plan effective December 18, 2011. In
connection with this action, The Daily Herald recorded a $2.4 million
charge in 2011 based on an estimate of the withdrawal liability.
Payment of the actual withdrawal liability will relieve The Washington
Post and The Daily Herald of further liability to the Plan absent certain
circumstances prescribed by law.
The Company’s total contributions to multiemployer pension plans
that are not individually significant amounted to $0.3 million in
2011, $0.4 million in 2010 and $0.4 million in 2009. The
Company’s total contributions to all multiemployer pension plans
amounted to $0.4 million in 2011, $1.0 million in 2010 and
$1.1 million in 2009.
Savings Plans. The Company recorded expense associated with
retirement benefits provided under incentive savings plans (primarily
401(k) plans) of approximately $20.9 million in 2011, $19.1
million in 2010 and $19.9 million in 2009.
14. OTHER NON-OPERATING (EXPENSE) INCOME
A summary of non-operating (expense) income for the years ended
December 31, 2011, January 2, 2011 and January 3, 2010 follows:
(in thousands) 2011 2010 2009
Impairment write-down on a
marketable equity security . . . $(53,793) $—$ —
Foreign currency (losses) gains,
net .................... (3,263) 6,705 16,871
Gain on sale of a cost method
investment ............... 4,031 ——
Impairment write-downs on cost
method investments ........ (3,612) —(3,800)
Other, net ................. 1,437 810 126
Total ..................... $(55,200) $7,515 $13,197
15. LEASES AND OTHER COMMITMENTS
The Company leases real property under operating agreements.
Many of the leases contain renewal options and escalation clauses
that require payments of additional rent to the extent of increases in
the related operating costs.
At December 31, 2011, future minimum rental payments under
noncancelable operating leases approximate the following:
(in thousands)
2012 ...................................... $135,911
2013 ...................................... 116,435
2014 ...................................... 99,335
2015 ...................................... 78,955
2016 ...................................... 69,597
Thereafter ................................... 243,736
$743,969
Minimum payments have not been reduced by minimum sublease
rentals of $14.5 million due in the future under noncancelable
subleases.
Rent expense under operating leases, including a portion reported in
discontinued operations, was approximately $127.8 million,
$134.0 million and $131.7 million in 2011, 2010 and 2009,
respectively. Sublease income was approximately $2.7 million, $0.5
million and $0.7 million in 2011, 2010 and 2009, respectively.
The Company’s broadcast subsidiaries are parties to certain
agreements that commit them to purchase programming to be
produced in future years. At December 31, 2011, such
commitments amounted to approximately $33.7 million. If such
programs are not produced, the Company’s commitment would
expire without obligation.
2011 FORM 10-K 85