Washington Post 2014 Annual Report Download - page 98

The net periodic cost (benefit), as reported above, includes a
benefit of $2.9 million included in discontinued operations in each
year for 2013 and 2012. The Company recorded a curtailment
gain of $1.3 million in the fourth quarter of 2014 in connection
with the exchange of WPLG, and the Separation Incentive Program
and VRIP offered to certain Corporate employees. As part of the
sale of The Herald, changes were made with respect to its
postretirement medical plan, resulting in a $3.5 million settlement
gain that is included in discontinued operations, net of tax, for
2013. The remaining 2013 curtailment and settlement gains are
included in the gain on sale of Publishing Subsidiaries, which is
also reported in discontinued operations. In 2012, the Company
offered a VRPI to certain employees of The Washington Post
newspaper and recorded early retirement expense of $0.4 million,
which is included in discontinued operations.
The costs for the Company’s postretirement plans are actuarially
determined. The discount rates utilized to determine periodic cost
for the years ended December 31, 2014, 2013 and 2012, were
3.80%, 3.30% and 3.90%, respectively. AOCI included the
following components of unrecognized net periodic benefit for the
postretirement plans:
As of December 31
(in thousands) 2014 2013
Unrecognized actuarial gain ............. $(7,404) $(13,928)
Unrecognized prior service credit ......... (1,163) (2,306)
Gross Amount ........................ (8,567) (16,234)
Deferred tax liability ................... 3,427 6,494
Net Amount .......................... $(5,140) $ (9,740)
During 2015, the Company expects to recognize the following
amortization components of net periodic cost for the other
postretirement plans:
(in thousands) 2015
Actuarial gain recognition .......................... $(996)
Prior service credit recognition ....................... $(502)
Multiemployer Pension Plans.In 2014, the Company contributed
to one multiemployer defined benefit pension plan under the terms
of a collective-bargaining agreement that covered certain union-
represented employees.
In March 2013, the Company recorded a $0.4 million charge as
The Herald unilaterally withdrew from the Western Conference
Teamsters Pension Trust Fund as a result of the sale of its business. In
2012, The Herald notified the GCIU Employer’s Trust Fund of its
unilateral withdrawal from the Plan effective November 30, 2012,
and recorded a $0.9 million charge based on an estimate of the
withdrawal liability.
The Company’s total contributions to all multiemployer pension
plans amounted to $0.1 million in 2014, $0.1 million in 2013
and $0.2 million in 2012.
Savings Plans. The Company recorded expense associated with
retirement benefits provided under incentive savings plans (primarily
401(k) plans) of approximately $9.2 million in 2014, $8.7 million
in 2013 and $12.2 million in 2012.
15. OTHER NON-OPERATING INCOME (EXPENSE)
A summary of non-operating income (expense) is as
follows:
Year Ended December 31
(in thousands) 2014 2013 2012
Gain on sale of Classified
Ventures .................. $396,553 $—$—
Gain on Berkshire marketable equity
securities exchange .......... 266,733 ——
Gain on sale of headquarters
building ................... 127,670 ——
Gain on sale of intangible assets . . 75,249 ——
Foreign currency (losses) gains,
net ...................... (11,129) (13,382) 3,132
(Losses) gain on sales or write-down
of marketable equity securities . . (3,044) (9,559) (17,564)
(Losses) gains on sales or write-
downs of cost method
investments, net ............. (94) (1,761) 6,639
Other, net ................... 1,321 951 2,337
Total Other Non-Operating
Income (Expense) .......... $853,259 $(23,751) $ (5,456)
On October 1, 2014, the Company and the remaining partners
completed the sale of their entire stakes in Classified Ventures. Total
proceeds to the Company, net of transaction costs, were $408.5
million, of which $16.5 million will be held in escrow until
October 1, 2015. The Company recorded a pre-tax gain of
$396.6 million on the sale of its interest in Classified Ventures in the
fourth quarter of 2014.
In July 2014, the cable division sold wireless spectrum licenses for
$98.8 million; a pre-tax gain of $75.2 million was reported in the
third quarter of 2014 in connection with these sales. The licenses
had been purchased in the 2006 AWS Auction.
On June 30, 2014, the Company completed a transaction with
Berkshire Hathaway, as described in Note 7, that included the
exchange of 2,107 Class A Berkshire shares and 1,278 Class B
Berkshire shares owned by the Company; a $266.7 million gain was
recorded.
On March 27, 2014, the Company completed the sale of its
headquarters building for $158 million. In connection with the sale,
the Company recorded a $127.7 million pre-tax gain.
82 GRAHAM HOLDINGS COMPANY