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SEC Filings

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


    Deferred income taxes at January 2, 1994, consist of the following (in
thousands):


<TABLE>
<CAPTION>
- ---------------------------------------------------------------------------------
                                                                           1993
- ---------------------------------------------------------------------------------
<S>                                                                    <C>
Accrued postretirement benefits . . . . . . . . . . . . . . . .        $   42,336
Other benefit obligations . . . . . . . . . . . . . . . . . . .            17,760
Accounts receivable . . . . . . . . . . . . . . . . . . . . . .             6,368
Other . . . . . . . . . . . . . . . . . . . . . . . . . . . . .             3,855
                                                                       ----------
Deferred tax asset  . . . . . . . . . . . . . . . . . . . . . .        $   70,319
                                                                       ----------

Property, plant and equipment . . . . . . . . . . . . . . . . .        $   48,275
Prepaid pension cost  . . . . . . . . . . . . . . . . . . . . .            39,769
Affiliate operations  . . . . . . . . . . . . . . . . . . . . .            12,211
Investment tax credit . . . . . . . . . . . . . . . . . . . . .             3,760
                                                                       ----------
Deferred tax liability  . . . . . . . . . . . . . . . . . . . .           104,015
                                                                       ----------
Deferred income taxes . . . . . . . . . . . . . . . . . . . . .        $   33,696
                                                                       ==========
</TABLE>


F.  DEBT

Long-term debt of the company as of January 2, 1994, and January 3, 1993, is
summarized as follows (in thousands):


<TABLE>
<CAPTION>
- ---------------------------------------------------------------------------------
                                                       1993                1992
- ---------------------------------------------------------------------------------
<S>                                               <C>                  <C>
10.1 percent unsecured European
  Currency Unit notes, $50,000,000
  face amount due in 1996 . . . . . . . . . .     $    50,368          $   50,442
10.875 percent unsecured
  Eurodollar notes, $1,400,000
  face amount due in 1995 . . . . . . . . . .           1,400               1,400
                                                  -----------          ----------
                                                  $    51,768          $   51,842
                                                  ===========          ==========
</TABLE>


G.  CAPITAL STOCK, STOCK OPTIONS AND STOCK AWARDS

CAPITAL STOCK. Each share of Class A common stock and Class B common stock
participates equally in dividends. The Class B stock has limited voting rights
and as a class has the right to elect 30 percent of the Board of Directors; the
Class A stock has unlimited voting rights including the right to elect a
majority of the Board of Directors. In 1991, 9,128 shares of the company's
Class A common stock were converted into an equal number of shares of the
company's Class B common stock.
    During 1993 and 1992 the company purchased a total of 99,800 and 33,949
shares, respectively, of its Class B common stock at a cost of approximately
$23,133,000 and $7,484,000.

STOCK OPTIONS. In May 1993 the Stock Option Plan was amended to increase to
1,900,000 the number of shares of the company's Class B common stock to be
reserved for options to be granted under the Plan. The purchase price of the
shares covered by an option cannot be less than the fair value on the granting
date. At January 2, 1994, there were 662,950 shares reserved for issuance under
the Stock Option Plan, of which 155,000 shares were subject to options
outstanding and 507,950 shares were available for future grants.  Changes in
options outstanding for the years ended January 2, 1994, and January 3, 1993,
were as follows:


<TABLE>
<CAPTION>
- ---------------------------------------------------------------------------------
                                        1993                          1992
                                  -----------------------------------------------
                                  Number   Average              Number   Average
                                    Of      Option                Of      Option
                                  Shares    Price               Shares    Price
- ---------------------------------------------------------------------------------
<S>                               <C>       <C>                <C>        <C>
Beginning of
  year  . . . . . . . .           143,000   $256.88            125,000    $260.49
  Granted . . . . . . .            12,500    239.88             19,000     226.00
  Exercised . . . . . .              (500)   121.50             (1,000)    121.50
                                  -------                      -------
End of year . . . . . .           155,000    255.95            143,000     256.88
                                  =======                      =======
</TABLE>


    Of the shares covered by options outstanding at the end of 1993, 65,375 are
now exercisable, 14,875 will become exercisable in 1994, 13,750 will become
exercisable in 1995, 7,875 will become exercisable in 1996, 3,125 will become
exercisable in 1997, and 50,000 will become exercisable in 1999.

STOCK AWARDS. In 1982 the company adopted a Long-Term Incentive Compensation
Plan that, among other provisions, authorizes the awarding of stock to key
employees. Stock awards made under the Incentive Compensation Plan are subject
to the general restriction that stock awarded to a participant will be
forfeited and revert to company ownership if the participant's employment
terminates before the end of a specified period of service to the company. At
January 2, 1994, there were 140,164 shares reserved for issuance under the
Incentive Compensation Plan. Of this number, 27,955 shares were subject to
awards outstanding, and 112,209 shares were available for future awards.
Activity related to stock awards for the years ended January 2, 1994, and
January 3, 1993, was as follows:


<TABLE>
<CAPTION>
- ---------------------------------------------------------------------------------
                                       1993                           1992
                                  -----------------------------------------------
                                  Number   Average              Number   Average
                                    Of      Award                 Of      Award
                                  Shares    Price               Shares    Price
- ---------------------------------------------------------------------------------
<S>                               <C>       <C>                 <C>       <C>
Awards Outstanding
Beginning of
  year  . . . . . . . .            24,765   $202.99             25,461    $202.62
  Awarded . . . . . . .            15,437    228.67                192     228.58
  Vested  . . . . . . .           (11,340)   209.05                 --         --
  Forfeited . . . . . .              (907)   206.35               (888)    197.83
                                  -------                       ------
End of year . . . . . .            27,955    214.61             24,765     202.99
                                  =======                       ======
</TABLE>


    For the share awards outstanding at January 2, 1994, the aforementioned
restriction will lapse in January 1995 for 12,809 shares and in January 1997
for 15,146 shares.

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