Washington Post 2012 Annual Report Download - page 102

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 $0.2 million in
2012, $0.3 million in 2011 and $0.4 million in 2010. The
Company’s total contributions to all multiemployer pension plans
amounted to $0.2 million in 2012, $0.4 million in 2011 and
$1.0 million in 2010.
Savings Plans. The Company recorded expense associated with
retirement benefits provided under incentive savings plans (primarily
401(k) plans) of approximately $17.3 million in 2012, $20.4
million in 2011 and $18.9 million in 2010.
14. OTHER NON-OPERATING (EXPENSE) INCOME
A summary of non-operating (expense) income for the years ended
December 31, 2012 and 2011, and January 2, 2011, follows:
(in thousands) 2012 2011 2010
Impairment write-down on a
marketable equity security .... $(17,998) $(53,793) $ —
Gains (losses) on sales or
write-downs of cost method
investments ............... 6,639 419 —
Foreign currency gains
(losses), net ............... 3,132 (3,263) 6,705
Other, net .................. 2,771 1,437 810
Total Other Non-Operating
(Expense) Income .......... $ (5,456) $(55,200) $7,515
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, 2012, future minimum rental payments under
noncancelable operating leases approximate the following:
(in thousands)
2013 ...................................... $131,737
2014 ...................................... 118,524
2015 ...................................... 98,013
2016 ...................................... 88,852
2017 ...................................... 76,573
Thereafter ................................... 260,129
$773,828
Minimum payments have not been reduced by minimum sublease
rentals of $35.9 million due in the future under noncancelable
subleases.
Rent expense under operating leases, including a portion reported in
discontinued operations, was approximately $127.2 million,
$127.8 million and $134.0 million in 2012, 2011 and 2010,
respectively. Sublease income was approximately $4.4 million, $2.7
million and $0.5 million in 2012, 2011 and 2010, respectively.
The Company’s broadcast subsidiaries are parties to certain agree-
ments that commit them to purchase programming to be produced in
future years. At December 31, 2012, such commitments amounted
to approximately $25.9 million. If such programs are not produced,
the Company’s commitment would expire without obligation.
16. CONTINGENCIES
Litigation and Legal Matters. The Company and its subsidiaries
are subject to the items listed below, other complaints and admin-
istrative proceedings and are defendants in various other civil
lawsuits that have arisen in the ordinary course of their businesses,
including contract disputes; actions alleging negligence, libel,
invasion of privacy, trademark, copyright and patent infringement;
U.S. Federal False Claims Act (False Claim Act) violations;
violations of applicable wage and hour laws; and statutory or
common law claims involving current and former students and
employees. Although the outcomes of the legal claims and
proceedings against the Company cannot be predicted with
certainty, based on currently available information, management
believes that there are no existing claims or proceedings that are
likely to have a material effect on the Company’s business, financial
condition, results of operations or cash flows. Also, based on
currently available information, management is of the opinion that the
exposure to future material losses from existing legal proceedings is
not reasonably possible, or that future material losses in excess of the
amounts accrued are not reasonably possible.
A purported class-action complaint was filed against the Company,
Donald E. Graham and Hal S. Jones on October 28, 2010, in the
U.S. District Court for the District of Columbia, by the Plumbers Local
#200 Pension Fund. The complaint alleged that the Company
and certain of its officers made materially false and misleading
statements, or failed to disclose material facts relating to KHE, in
violation of the U.S. Federal securities laws. The complaint sought
damages, attorneys’ fees, costs and equitable/injunctive relief. The
Company moved to dismiss the complaint, and on December 23,
2011, the court granted the Company’s motion and dismissed the
case with prejudice. On January 25, 2012, the Plaintiff filed a
motion seeking leave to amend or alter that final judgment, which
the court granted in part on March 13, 2012 by allowing the
Plaintiff to file an amended complaint. On May 11, 2012, the
Company moved to dismiss the amended complaint. The parties
await a ruling on the motion to dismiss.
On February 6, 2008, a purported class-action lawsuit was filed in
the U.S. District Court for the Central District of California by
purchasers of BAR/BRI bar review courses from July 2006 onward
alleging antitrust claims against Kaplan and West Publishing
Corporation, BAR/BRI’s former owner. On April 10, 2008, the
court granted defendants’ motion to dismiss, a decision that was
reversed by the Ninth Circuit Court of Appeals on November 7,
2011. The Ninth Circuit also referred the matter to a mediator for
90 THE WASHINGTON POST COMPANY