Washington Post 2012 Annual Report Download - page 57

and businesses. The graph reflects the investment of $100 on December 31, 2007, 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
$0
COMPARISON OF CUMULATIVE FIVE YEAR TOTAL RETURN
The Washington Post Company S&P 500 Index S&P 1500 Publishing Index Peer Group
2007 2008 2009 2010 2011 2012
December 31 2007 2008 2009 2010 2011 2012
The Washington Post Company .............................. 100.00 50.04 57.52 58.70 51.53 52.71
S&P 500 Index .......................................... 100.00 63.00 79.67 91.68 93.61 108.59
S&P 1500 Publishing Index ................................. 100.00 43.92 66.41 71.41 76.32 94.14
Education Peer Group ..................................... 100.00 106.57 100.39 75.18 76.63 32.61
Item 6. Selected Financial Data.
See the information for the years 2008 through 2012 contained in the table titled “Five-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 49 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 49 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 non-U.S. business operations, which are subject to foreign exchange rate risk.
Equity Price Risk. The Company has common stock investments in several publicly traded companies (as discussed in
Note 4 to the Company’s Consolidated Financial Statements) that are subject to market price volatility. The fair value of
these common stock investments totaled $380.1 million at December 31, 2012.
Interest Rate Risk. The Company’s long-term debt consists of $400 million principal amount of 7.25% unsecured notes
due February 1, 2019 (the Notes). At December 31, 2012, the aggregate fair value of the Notes, based upon quoted
market prices, was $481.4 million. An increase in the market rate of interest applicable to the Notes would not increase
the Company’s interest expense with respect to the Notes since the rate of interest the Company is required to pay on the
Notes is fixed, but such an increase in rates would affect the fair value of the Notes. Assuming, hypothetically, that the
market interest rate applicable to the Notes was 100 basis points higher than the Notes’ stated interest rate of 7.25%,
the fair value of the Notes at December 31, 2012, would have been approximately $381.1 million. Conversely, if the
market interest 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 $419.9 million.
2012 FORM 10-K 45