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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
                          ---------------------------


AVERAGE NUMBER OF SHARES OUTSTANDING. Earnings per share are based on the
weighted average number of shares of common stock outstanding during each year,
adjusted for the dilutive effect of shares issuable under outstanding stock
options and awards made under the Incentive Compensation Plan. The average
number of shares outstanding was 11,750,000 for 1993, 11,830,000 for 1992 and
11,876,000 for 1991.

H.  RETIREMENT PLANS

The company and its subsidiaries have various funded and unfunded pension and
incentive savings plans and in addition contribute to several multi-employer
plans on behalf of certain union-represented employee groups. Substantially all
of the company's employees, including some located in foreign countries, are
covered by these plans. Pension (benefit) cost for all retirement plans
combined was $(2,300,000) in 1993, $5,200,000 in 1992 and $3,000,000 in 1991.
Included in 1992 are costs of $8,300,000 related to a new deferred compensation
arrangement at The Washington Post newspaper. Included in 1991 are costs of
$4,900,000 associated with the voluntary reduction of staff at The Washington
Post newspaper.
    The costs for the company's defined benefit pension plans are actuarially
determined and include amortization of prior service costs over various
periods, generally not exceeding 20 years. The company's policy is to fund the
costs accrued for its defined benefit plans.
    The following table sets forth the funded status of the defined benefit
plans and amounts recognized in the Consolidated Balance Sheets at January 2,
1994, and January 3, 1993 (in thousands):


<TABLE>
<CAPTION>
- ---------------------------------------------------------------------------------
                                                       1993                1992
- ---------------------------------------------------------------------------------
<S>                                                 <C>                <C>
Actuarial present value of accumulated
  plan benefits, including vested
  benefits of $142,706 and $129,144 . . . .         $ 151,200          $  139,980
                                                    =========          ==========

Plan assets at fair value, primarily
  listed securities . . . . . . . . . . . .         $ 454,741          $  425,422
Projected benefit obligation for
  service rendered to date  . . . . . . . .          (187,490)           (173,133)
                                                    ---------          ----------
Plan assets in excess of projected
  benefit obligation  . . . . . . . . . . .           267,251             252,289
Prior service cost not yet recognized in
  periodic pension cost . . . . . . . . . .            15,697              16,855
Less unrecognized net gain from past
  experience different from that
  assumed . . . . . . . . . . . . . . . . .          (114,212)           (112,653)
Less unrecognized net asset
  (transition amount) being recognized
  over approximately 17 years . . . . . . .           (68,933)            (76,599)
                                                    ---------          ----------
Prepaid pension cost  . . . . . . . . . . .         $  99,803          $   79,892
                                                    =========          ==========
</TABLE>


    The net pension credit for the years ended January 2, 1994, January 3,
1993, and December 29, 1991, includes the following components (in thousands):


<TABLE>
<CAPTION>
- ---------------------------------------------------------------------------------
                                   1993               1992                 1991
- ---------------------------------------------------------------------------------
<S>                              <C>                 <C>                 <C>
Service cost for benefits
  earned during the period  .    $  8,805            $  8,312            $  7,200
Interest cost on projected
  benefit obligation  . . . .      12,683              11,700              10,327
Actual return on plan
  assets  . . . . . . . . . .     (35,086)            (29,388)            (84,880)
Net amortization and
  deferral  . . . . . . . . .      (5,839)             (8,185)             50,471
Cost of voluntary reduction
  in staff  . . . . . . . . .          --                  --               4,916
                                 --------            --------            --------
Net pension credit  . . . . .    $(19,437)           $(17,561)           $(11,966)
                                 ========            ========            ========
</TABLE>


    The weighted average discount rate and rate of increase in future
compensation levels used for 1993, 1992 and 1991 in determining the actuarial
present value of the projected benefit obligation were 7.5 percent and 4
percent, respectively. The expected long-term rate of return on assets was 9
percent in 1993, 1992 and 1991.
    Contributions to multi-employer pension plans, which are generally based on
hours worked, amounted to $1,900,000 in 1993, $1,500,000 in 1992 and $1,300,000
in 1991.
    The costs of unfunded retirement plans are charged to expense when accrued.
The company's liability for such plans, which is included in "Other
Liabilities" in the Consolidated Balance Sheets, was $45,000,000 at January 2,
1994, and $41,500,000 at January 3, 1993.

I.  POSTRETIREMENT BENEFITS OTHER THAN PENSIONS

The company and its subsidiaries provide health care and life insurance
benefits to certain retired employees. These employees become eligible for
benefits after meeting minimum age and service requirements.
    In 1991 the company adopted the provisions of SFAS No. 106, "Employers'
Accounting for Postretirement Benefits Other Than Pensions." As permitted by
SFAS No. 106, the company elected to recognize in 1991 the accumulated benefit
obligation related to prior service costs. This obligation of $78,208,000,
after income taxes of $30,311,000, is shown on the Consolidated Statements of
Income as the cumulative effect of a change in accounting principle.

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