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10-K
GRAHAM HOLDINGS CO filed this Form 10-K on 03/29/1994
Entire Document
 
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                          THE WASHINGTON POST COMPANY
                          ---------------------------

financial accounting and tax purposes. Deferred taxes were provided on these
timing differences using the tax rate in effect when the timing differences
originated, and the effects of reversing timing differences were reflected at
those historical tax rates.

FOREIGN CURRENCY TRANSLATION. Gains and losses on foreign currency transactions
and the translation of the accounts of the company's foreign operations where
the U.S. dollar is the functional currency are recognized currently in the
Consolidated Statements of Income. Gains and losses on translation of the
accounts of the company's foreign operations where the local currency is the
functional currency and the company's equity investments in its foreign
affiliates are accumulated and reported separately in the "Cumulative foreign
currency translation adjustment" in the Consolidated Balance Sheets.

POSTRETIREMENT BENEFITS OTHER THAN PENSIONS. The company provides certain
health care and life insurance benefits for retired employees. The expected
cost of providing these postretirement benefits is accrued over the years that
employees render the necessary service.

B.  MARKETABLE SECURITIES

The company's marketable securities at January 2, 1994, and January 3, 1993,
include the following (in thousands):


<TABLE>
<CAPTION>
- --------------------------------------------------------
                                      1993        1992
- --------------------------------------------------------
<S>                                 <C>         <C>
U.S. Government and Government
  agency obligations                $237,655    $221,398
Commercial paper                      20,757      20,031
                                    --------    --------
                                    $258,412    $241,429
                                    ========    ========
</TABLE>


C.  ACCOUNTS RECEIVABLE AND ACCOUNTS PAYABLE
    AND ACCRUED LIABILITIES

Accounts receivable at January 2, 1994, and January 3, 1993, consist of the 
following (in thousands):


<TABLE>
<CAPTION>
- ---------------------------------------------------------------------------------
                                                      1993                 1992
- ---------------------------------------------------------------------------------
<S>                                                <C>                 <C>
Accounts receivable, less estimated
  returns, doubtful accounts and
  allowances of $38,602 and $35,300 . . . . .      $  129,976          $  120,531
Other . . . . . . . . . . . . . . . . . . . .          10,542               7,837
                                                   ----------          ----------
                                                   $  140,518          $  128,368
                                                   ==========          ==========
</TABLE>


    Accounts payable and accrued liabilities at January 2, 1994, and January 3,
1993, consist of the following (in thousands):


<TABLE>
<CAPTION>
- ---------------------------------------------------------------------------------
                                                       1993               1992
- ---------------------------------------------------------------------------------
<S>                                                <C>                 <C>
Accounts payable and accrued
  expenses  . . . . . . . . . . . . . . . .        $   91,831            $113,841
Accrued payroll and related benefits  . . .            31,747              28,459
Accrued interest expense  . . . . . . . . .             4,437               5,693
Deferred tuition revenue  . . . . . . . . .            12,564              11,400
Film contracts payable  . . . . . . . . . .            14,978              19,824
Due to affiliates (newsprint) . . . . . . .             7,996               9,308
                                                   ----------          ----------
                                                   $  163,553          $  188,525
                                                   ==========          ==========
</TABLE>


D.  INVESTMENTS IN AFFILIATES

The company's investments in affiliates at January 2, 1994, and January 3,
1993, include the following (in thousands):


<TABLE>
<CAPTION>
- ---------------------------------------------------------------------------------
                                                       1993                1992
- ---------------------------------------------------------------------------------
<S>                                                <C>                 <C>
Cowles Media Company  . . . . . . . . . . .        $   80,786          $   80,415
Newsprint mills . . . . . . . . . . . . . .            50,172              55,829
Other . . . . . . . . . . . . . . . . . . .            24,293              26,166
                                                   ----------          ----------
                                                   $  155,251          $  162,410
                                                   ==========          ==========
</TABLE>


    The company's investments in affiliates includes a  28 percent interest in
the stock of Cowles Media Company, which owns and operates the Minneapolis Star
Tribune and several other smaller properties.
    The company's interest in newsprint mills includes a 49 percent interest in
the common stock of Bowater Mersey Paper Company Limited, which owns and
operates a newsprint mill in Nova Scotia; a one-third limited partnership
interest in Bear Island Paper Company, which owns and operates a newsprint mill
near Richmond, Virginia; and a one-third limited partnership interest in Bear
Island Timberlands Company, which owns timberland and supplies Bear Island
Paper Company with a major portion of its wood requirements. In early 1994 the
company increased its investments in both Bear Island Paper Company and Bear
Island Timberlands Company to 35 percent. Operating costs and expenses of the
company include newsprint supplied by Bowater, Inc. (parent of Bowater Mersey
Paper Company), and Bear Island Paper Company and used in operations, the cost
of which was $52,500,000 in 1993, $51,000,000 in 1992 and $59,200,000 in 1991.
    The company's other investments represent a 50 percent common stock
interest in the International Herald Tribune newspaper, published near Paris,
and a 50 percent common stock interest in the Los Angeles Times-Washington Post
News Service, Inc. In 1991 investments also included a 30 percent common stock
interest in The Gazette Newspapers, Inc. This investment

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