Washington Post 2015 Annual Report Download - page 78

Download and view the complete annual report

Please find page 78 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 reflects a summary of the Company’s contractual obligations as of December 31, 2015:
(in thousands) 2016 2017 2018 2019 2020 Thereafter Total
Debt and interest ................. $ 29,000 $ 30,204 $ 29,000 $414,500 $ – $ – $ 502,704
Operating leases ................. 106,253 95,675 80,188 69,839 54,351 214,050 620,356
Programming purchase
commitments(1) ................ 9,149 7,877 3,897 182 182 485 21,772
Other purchase obligations(2) ........ 73,218 27,293 10,691 4,420 2,354 3,127 121,103
Long-term liabilities(3) ............. 5,821 5,694 5,421 5,322 5,525 34,786 62,569
Total ...................... $223,441 $166,743 $129,197 $494,263 $62,412 $252,448 $1,328,504
(1) Includes commitments for the Company’s television broadcasting business that are reflected in the Company’s Consolidated Financial
Statements and commitments to purchase programming to be produced in future years.
(2) Includes purchase obligations related to employment agreements, capital projects and other legally binding commitments. Other purchase
orders made in the ordinary course of business are excluded from the table above. Any amounts for which the Company is liable under
purchase orders are reflected in the Company’s Consolidated Balance Sheets as accounts payable and accrued liabilities.
(3) Primarily made up of postretirement benefit obligations other than pensions. The Company has other long-term liabilities excluded from
the table above, including obligations for deferred compensation, long-term incentive plans and long-term deferred revenue.
Other. The Company does not have any off-balance-sheet arrangements or financing activities with special-
purpose entities (SPEs). Transactions with related parties, as discussed in Note 4 to the Company’s Consolidated
Financial Statements, are in the ordinary course of business and are conducted on an arm’s-length basis.
CRITICAL ACCOUNTING POLICIES AND ESTIMATES
The preparation of financial statements in conformity with generally accepted accounting principles requires
management to make estimates and judgments that affect the amounts reported in the financial statements. On an
ongoing basis, the Company evaluates its estimates and assumptions. The Company bases its estimates on
historical experience and other assumptions believed to be reasonable under the circumstances, the results of
which form the basis for making judgments about the carrying value of assets and liabilities that are not readily
apparent from other sources. Actual results could differ from these estimates.
An accounting policy is considered to be critical if it is important to the Company’s financial condition and
results and if it requires management’s most difficult, subjective and complex judgments in its application. For a
summary of all of the Company’s significant accounting policies, see Note 2 to the Company’s Consolidated
Financial Statements.
Revenue Recognition, Trade Accounts Receivable and Allowance for Doubtful Accounts. Education
tuition revenue is recognized ratably over the period of instruction as services are delivered to students, net of
any refunds, corporate discounts, scholarships and employee tuition discounts.
At KTP and Kaplan International, estimates of average student course length are developed for each course,
along with estimates for the anticipated level of student drops and refunds from test performance guarantees, and
these estimates are evaluated on an ongoing basis and adjusted as necessary. As Kaplan’s businesses and related
course offerings have changed, including more online programs, the complexity and significance of
management’s estimates have increased.
KHE, through the Kaplan Commitment program, provides first-time undergraduate students with a risk-free trial
period. Under the program, KHE monitors academic progress and conducts assessments to help determine
whether students are likely to be successful in their chosen course of study. Students who withdraw or are subject
to dismissal during the risk-free trial period do not incur any significant financial obligation. The Company does
63 GRAHAM HOLDINGS COMPANY