Washington Post 2015 Annual Report Download - page 97

per share is calculated similarly except that the weighted average number of common shares outstanding during
the period includes the dilutive effect of the assumed exercise of options and restricted stock issuable under the
Company’s stock plans. The dilutive effect of potentially dilutive securities is reflected in diluted earnings per
share by application of the treasury stock method.
Redeemable Noncontrolling Interests. The Company’s redeemable noncontrolling interests represent the
noncontrolling interests in Celtic Healthcare (Celtic) and Residential Healthcare (Residential), each of which is 80%
owned. The minority shareholders in Celtic have an option to put their shares to the Company from 2018 to 2022,
and the Company has an option to buy the shares of the minority shareholders in 2022. The minority shareholders in
Residential have an option to put their shares to the Company starting in 2017, and the Company has an option to
buy the shares of some minority shareholders in 2020 and those of the remaining minority shareholders in 2024.
The Company presents the redeemable noncontrolling interests at the greater of their carrying amount or redemption
value at the end of each reporting period in the Consolidated Balance Sheets. Changes in the redemption value are
recorded to capital in excess of par value in the Company’s Consolidated Balance Sheets.
Comprehensive Income. Comprehensive income consists of net income, foreign currency translation
adjustments, the change in unrealized gains (losses) on investments in marketable equity securities, net changes
in cash flow hedge and pension and other postretirement plan adjustments.
Discontinued Operations. A disposal of a component is reported as discontinued operations if the disposal
represents a strategic shift that has or will have a major effect on the Company’s operations and financial results.
The results of discontinued operations (as well as the gain or loss on the disposal) are aggregated and separately
presented in the Company’s Consolidated Statements of Operations, net of income taxes.
Recently Adopted and Issued Accounting Pronouncements. In May 2014, the Financial Accounting
Standards Board (FASB) issued comprehensive new guidance that supersedes all existing revenue recognition
guidance. In August 2015, the FASB issued an amendment to the guidance that defers the effective date by one
year. The new guidance requires revenue to be recognized when the Company transfers promised goods or
services to customers in an amount that reflects the consideration to which the Company expects to be entitled in
exchange for those goods or services. The new guidance also significantly expands the disclosure requirements
for revenue recognition. The guidance is effective for interim and fiscal years beginning after December 15,
2017. Early adoption is permitted only as of annual reporting periods beginning after December 15, 2016. The
standard permits two implementation approaches, one requiring retrospective application of the new guidance
with a restatement of prior years and one requiring prospective application of the new guidance with disclosure
of results under the old guidance. The Company is in the process of evaluating the impact of this new guidance
on its Consolidated Financial Statements and believes such evaluation will extend over several future periods
because of the significance of the changes to the Company’s policies and business processes.
In August 2014, the FASB issued new guidance that requires management to assess the Company’s ability to
continue as a going concern and to provide related disclosures in certain circumstances. This guidance is
effective for interim and fiscal years ending after December 15, 2016, with early adoption permitted. The
Company does not expect this guidance to have an impact on its Consolidated Financial Statements.
In September 2015, the FASB issued new guidance that simplifies the accounting for measurement period
adjustments for an acquirer in a business combination. The new guidance requires an acquirer to recognize any
adjustments to the provisional purchase accounting in the reporting period that the adjustment amounts are
determined, by eliminating the requirement to retrospectively account for those adjustments. The guidance
requires that the acquirer records, in the financial statements of the same period the adjustment is determined, the
effect on earnings of changes in depreciation, amortization, or other income effects, if any, as a result of the
change in the provisional amounts. The amount of the change is calculated as if the accounting had been
completed at the acquisition date. The guidance is effective for interim and fiscal years beginning after
December 15, 2015. Early adoption is permitted. The Company does not expect this guidance to have a material
impact on its Consolidated Financial Statements.
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