Washington Post 2015 Annual Report Download - page 83

unamortized actuarial gains in accumulated other comprehensive income subject to amortization outside the
corridor, and, therefore, an amortized gain of $28.9 million was included in the pension credit for 2014.
During 2014, there was a decrease in the discount rate offset by pension asset gains that resulted in no net
unamortized actuarial gains or losses in accumulated other comprehensive income subject to amortization outside
the 10% corridor, and therefore, no amortized gain or loss amounts were included in the pension credit in the first
six months of 2015. As a result of the Cable ONE spin-off and KHE Campuses sale, the Company remeasured
the accumulated and projected benefit obligation as of July 1, 2015 and September 3, 2015, respectively, and
recorded a curtailment gain. During the first six months of 2015, there were pension asset gains and an increase
in the discount rate, which resulted in net unamortized actuarial gains in accumulated other comprehensive
income subject to amortization outside the corridor, and, therefore, an amortized gain of $11.9 million is included
in the pension credit for the last six months of 2015.
During the last four months of 2015, there were significant pension asset losses. The Company currently
estimates that there will be no net unamortized actuarial gains or losses in accumulated other comprehensive
income subject to amortization outside the corridor, and, therefore, no amortized gain or loss amount is included
in the estimated pension cost for 2016.
Overall, the Company estimates that it will record a net pension credit of approximately $48.3 million in 2016.
Note 14 to the Company’s Consolidated Financial Statements provides additional details surrounding pension
costs and related assumptions.
Income Tax Valuation Allowances. Deferred income taxes arise from temporary differences between the tax
and financial statement recognition of assets and liabilities. In evaluating its ability to recover deferred tax assets
within the jurisdiction from which they arise, the Company considers all available positive and negative
evidence, including scheduled reversals of deferred tax liabilities, projected future taxable income, tax planning
strategies and recent financial operations. These assumptions require significant judgment about forecasts of
future taxable income.
As of December 31, 2015, the Company had state income tax net operating loss carryforwards of $420.2 million,
which will expire at various dates from 2016 through 2035. Also at December 31, 2015, the Company had $96.2
million of non-U.S. income tax loss carryforwards, of which $88.4 million may be carried forward indefinitely;
$5.1 million of losses that, if unutilized, will expire in varying amounts through 2020; and $2.6 million of losses
that, if unutilized, will start to expire after 2020. At December 31, 2015, the Company has established
approximately $69.5 million in valuation allowances against deferred state tax assets, net of U.S. Federal income
taxes, and non-U.S. deferred tax assets, as the Company believes that it is more likely than not that the benefit
from certain state and non-U.S. net operating loss carryforwards and other deferred tax assets will not be
realized. The Company has established valuation allowances against state income tax benefits recognized,
without considering potentially offsetting deferred tax liabilities established with respect to prepaid pension cost
and goodwill. Prepaid pension cost and goodwill have not been considered a source of future taxable income for
realizing deferred tax benefits recognized since these temporary differences are not likely to reverse in the
foreseeable future. The valuation allowances established against state and non-U.S. income tax benefits recorded
may increase or decrease within the next 12 months, based on operating results, the market value of investment
holdings or business and tax planning strategies; as a result, the Company is unable to estimate the potential tax
impact, given the uncertain operating and market environment. The Company will be monitoring future operating
results and projected future operating results on a quarterly basis to determine whether the valuation allowances
provided against state and non-U.S. deferred tax assets should be increased or decreased, as future circumstances
warrant.
Recent Accounting Pronouncements. See Note 2 to the Company’s Consolidated Financial Statements for a
discussion of recent accounting pronouncements.
2015 FORM 10-K 68