Washington Post 2015 Annual Report Download - page 113

Download and view the complete annual report

Please find page 113 of the 2015 Washington Post annual report below. You can navigate through the pages in the report by either clicking on the pages listed below, or by using the keyword search tool below to find specific information within the annual report.

Page out of 152

  • 1
  • 2
  • 3
  • 4
  • 5
  • 6
  • 7
  • 8
  • 9
  • 10
  • 11
  • 12
  • 13
  • 14
  • 15
  • 16
  • 17
  • 18
  • 19
  • 20
  • 21
  • 22
  • 23
  • 24
  • 25
  • 26
  • 27
  • 28
  • 29
  • 30
  • 31
  • 32
  • 33
  • 34
  • 35
  • 36
  • 37
  • 38
  • 39
  • 40
  • 41
  • 42
  • 43
  • 44
  • 45
  • 46
  • 47
  • 48
  • 49
  • 50
  • 51
  • 52
  • 53
  • 54
  • 55
  • 56
  • 57
  • 58
  • 59
  • 60
  • 61
  • 62
  • 63
  • 64
  • 65
  • 66
  • 67
  • 68
  • 69
  • 70
  • 71
  • 72
  • 73
  • 74
  • 75
  • 76
  • 77
  • 78
  • 79
  • 80
  • 81
  • 82
  • 83
  • 84
  • 85
  • 86
  • 87
  • 88
  • 89
  • 90
  • 91
  • 92
  • 93
  • 94
  • 95
  • 96
  • 97
  • 98
  • 99
  • 100
  • 101
  • 102
  • 103
  • 104
  • 105
  • 106
  • 107
  • 108
  • 109
  • 110
  • 111
  • 112
  • 113
  • 114
  • 115
  • 116
  • 117
  • 118
  • 119
  • 120
  • 121
  • 122
  • 123
  • 124
  • 125
  • 126
  • 127
  • 128
  • 129
  • 130
  • 131
  • 132
  • 133
  • 134
  • 135
  • 136
  • 137
  • 138
  • 139
  • 140
  • 141
  • 142
  • 143
  • 144
  • 145
  • 146
  • 147
  • 148
  • 149
  • 150
  • 151
  • 152

The following summarizes the Company’s unrecognized tax benefits, excluding interest and penalties, for the
respective periods:
Year Ended December 31
(in thousands) 2015 2014 2013
Beginning unrecognized tax benefits ....................... $19,817 $–$–
Increases related to current year tax positions ............. –19,817 –
Increases related to prior year tax positions ............... –––
Decreases related to prior year tax positions ............... (2,486) ––
Decreases related to settlement with tax authorities ......... –––
Decreases due to lapse of applicable statutes of limitations . . . –––
Ending unrecognized tax benefits ......................... $17,331 $19,817 $–
The unrecognized tax benefits mainly relate to state income tax filing positions applicable to the 2014 tax period.
In making these determinations, the Company presumes that taxing authorities pursuing examinations of the
Company’s compliance with tax law filing requirements will have full knowledge of all relevant information,
and, if necessary, the Company will pursue resolution of disputed tax positions by appeals or litigation.
Although the Company cannot predict the timing of resolution with tax authorities, the Company estimates that
no portion of unrecognized tax benefits will be reduced in the next 12 months due to settlement with the tax
authorities. The Company expects that a $5.1 million state tax benefit, net of $1.8 million federal tax expense,
will reduce the effective tax rate in the future if recognized.
The Company identified and corrected a 2014 classification error in the tax footnote related to the presentation of
state unrecognized tax benefits where state net operating loss carryforwards exist. The Company assessed the
classification error and concluded it was not material to 2014.
The Company classifies interest and penalties related to uncertain tax positions as a component of interest and
other expenses, respectively. As of December 31, 2015, the Company has accrued $0.3 million of interest related
to the unrecognized tax benefits. The Company has not accrued any penalties related to the unrecognized tax
benefits.
10. DEBT
The Company’s borrowings consist of the following:
As of December 31
(in thousands) 2015 2014
7.25% unsecured notes due February 1, 2019 .......... $398,722 $398,308
AUD Revolving credit borrowing ................... –40,927
Other indebtedness .............................. 1,204 6,685
Total Debt ..................................... 399,926 445,920
Less: current portion ............................. –(46,375)
Total Long-Term Debt .......................... $399,926 $399,545
The Company did not borrow funds under its USD revolving credit facility in 2015 or 2014. The Company’s
other indebtedness at December 31, 2015, is at an interest rate of 6% and matures in 2017. The Company’s other
indebtedness at December 31, 2014, is at interest rates of 0% to 6% and matures between 2015 and 2017.
In January 2009, the Company issued $400 million in unsecured ten-year fixed-rate notes due February 1, 2019
(the Notes). The Notes have a coupon rate of 7.25% per annum, payable semiannually on February 1 and
2015 FORM 10-K 98