| (X) | ANNUAL REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 |
|-----|--------------------------------------------------------------------------------------|

| (  ) | TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 |
|-----------|------------------------------------------------------------------------------------------|

| For the fiscal year ended December 31, 2010 | Commission file number 2-28286                 |
|---------------------------------------------|------------------------------------------------|
|                                        |                                           |
| The Bureau of National Affairs, Inc.        |                                                |
|                                        |                                           |
| A Delaware Corporation                      | 53-0040540(I.R.S. Employer Identification No.) |
|                                        |                                           |
| 1801 South Bell Street                      | (703) 341-3000                                 |
| Arlington, Virginia 22202                   | (telephone number)                             |

| Large accelerated filer o | Accelerated filer o | Non-accelerated filer x | Smaller reporting company o |
|---------------------------|--------------------------|-------------------------|-----------------------------|

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| TABLE OF CONTENTS |
|------------------------|
|                   |   |   |
| .                      |   | Page No. |
|                   | PART I. |   |
| Item 1.                | Business | 3 |
| Item 1A.               | Risk Factors |  9 |
| Item 1B.          | Unresolved Staff Comments |  10 |
| Item 2.                | Properties | 10 |
| Item 3.                | Legal Proceedings | 10 |
| Item 4.                | Removed and Reserved | 10 |
|                   |   |   |
|                   | PART II. |   |
| Item 5.                | Market for the Registrant's Common Equity, Related Stockholder |   |
|                   | Matters and Issuer Purchases of Equity Securities | 11 |
| Item 6.           | Selected Financial Data | 13 |
| Item 7.           | Management's Discussion and Analysis of Financial Condition and |   |
|                   | Results of Operations | 14 |
| Item7A.                | Quantitative and Qualitative Disclosures About Market Risk | 22 |
| Item 8.           | Financial Statements and Supplementary Data | 23 |
| Item 9.           | Changes in and Disagreements with Accountants on Accounting |   |
|                   | and Financial Disclosure | 55 |
| Item 9A.          | Controls and Procedures | 55 |
| Item 9B.     | Other Information | 55 |
|                   |   |   |
|                   | PART III. |   |
| Item 10.          | Directors and Executive Officers, and Corporate Governance | 56 |
| Item 11.          | Executive Compensation | 57 |
| Item 12.          | Security Ownership of Certain Beneficial Owners and Management |   |
|                   | and Related Stockholder Matters  | 57 |
| Item 13.          | Certain Relationships and Related Transactions, |   |
|                   | and Director Independence  |  57 |
| Item 14.          | Principal Accountant Fees and Services | 58 |
|                   |   |   |
|                   | PART IV. |   |
| Item 15.          | Exhibits and Financial Statement Schedule | 58 |
|                   |   |   |
| Signatures             |   | 60 |
|                   |   |   |
| Exhibit Index     |    | 61 |

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| Item 1. | Business |
|---------|----------|

General Development of Business and Narrative Description of 

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| Item 1A. | Risk Factors |
|----------|--------------|

There 

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Outside Authors

| Item 1B. | Unresolved Staff Comments |
|----------|---------------------------|

| Item 2. | Properties |
|---------|------------|

| Item 3. | Legal Proceedings |
|---------|-------------------|

| Item 4. | (Removed and Reserved) |
|---------|------------------------|

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| Item 5. | Market for the Registrant's Common Equity, Related Stockholder Matters and Issuers Purchases of Equity Securities |
|---------|-------------------------------------------------------------------------------------------------------------------|

The

|   |  January 1, 2009 – March 21, 2009        |  $ | 15.75 |
|--------|----------------------------------------------------------------------------------------|---------|-------|
|   |  March 22, 2009 – September 19, 2009                         |    | 15.75 |
|   |  September 20, 2009 – March 21, 2010                                        |    | 15.75 |
|   |  March 22, 2010 – September 19, 2010                                   |    | 16.00 |
|   |  September 20, 2010 – December 31, 2010                           |    | 16.50 |

|   | March 21, 2009   |  $ | .20 |
|--------|----------------------------|---------|-----|
|   | September 19, 2009    |    | .21 |
|   | March 20, 2010   |    | .21 |
|   | September 18, 2010    |    | .23 |

|  Four-week Period                     | Total Number of Shares  Purchased | Average Price Paid per Share |
|--------------------------------------------|---------------------------------------------|-----------------------------------|
|                                       |                                        |                              |
| September 12, 2010 – October 9, 2010 | 63,619                                      | $ 16.50                           |
| October 10, 2010 - November 6, 2010        | 74,131                                      | $ 16.50                           |
| November 7, 2010 – December 4, 2010  | 193,547                                     | $ 16.50                           |
| December 5, 2010 - December 31, 2010       | 126,869                                     | $ 16.50                           |

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| Item 6. | Selected Financial Data |
|---------|-------------------------|

The Bureau of National Affairs, Inc.

|                                                                                    |   | 2010   |    |    | 2009   |   |    | 2008   |   |   | 2007    |    |   | 2006   |    |
|-----------------------------------------------------------------------------------------|--------|--------|---------|---------|--------|--------|---------|--------|--------|--------|---------|---------|--------|--------|---------|
| Operating Revenues                                                                      |   | $      | 331,009 |    |   | $      | 331,253 |   |   | $      | 352,211 |    |   | $      | 352,224 |   |   | $ | 344,862 |   |
| Operating Expenses (a)                                                                  |   |   | 283,940 |    |   |   | 307,627 |   |   |   | 303,316 |    |   |   | 303,669 |   |   |   | 313,747 |   |
| Gain (Loss) on Dispositions (b)                                                         |   |   | (427    | )  |   |   | 148     |   |   |   | (12     | )  |   |   | 92,133  |   |   |   | (19 | ) |
| Operating Profit                                                                        |   |   | 46,642  |    |   |   | 23,774  |   |   |   | 48,883  |    |   |   | 140,688 |   |   |   | 31,096 |   |
| Investment Income                                                                       |   |   | 4,751   |    |   |   | 4,270   |   |   |   | 4,579   |    |   |   | 5,566   |   |   |   | 5,883 |   |
| Interest Expense                                                                        |   |   | (1,750  | )       |   |   | (2,519  | )      |   |   | (3,277  | )       |   |   | (4,472  | ) |   |   | (5,604 | ) |
| Income Before Income Taxes                                                              |   |   | 49,643  |    |   |   | 25,525  |   |   |   | 50,185  |    |   |   | 141,782 |   |   |   | 31,375 |   |
| Income Taxes                                                                            |   |   | 22,034  |    |   |   | 8,030   |   |   |   | 18,744  |    |   |   | 53,744  |   |   |   | 11,922 |   |
| Net Income                                                                              |   | $      | 27,609  |    |   | $      | 17,495  |   |   | $      | 31,441  |    |   | $      | 88,038  |   |   | $ | 19,453 |   |
| Profit Margins (% of revenues):                                                         |   |   |    |    |   |   |    |   |   |   |    |    |   |   |    |   |   |   |   |   |
|   Operating Profit                                                            |   |   | 14.1    |    |   |   | 7.2     |   |   |   | 13.9    |    |   |   | 39.9    |   |   |   | 9.0 |   |
|   Earnings                                                                    |   |   | 8.3     |    |   |   | 5.3     |   |   |   | 8.9     |    |   |   | 25.0    |   |   |   | 5.6 |   |
| Earnings Per Share                                                                      |   | $      | 1.07    |    |   | $      | .65     |   |   | $      | 1.11    |    |   | $      | 2.99    |   |   | $ | .65 |   |
| Dividends Per Share                                                                     |   | $      | .44     |    |   | $      | .41     |   |   | $      | .40     |    |   | $      | .36     |   |   | $ | .34 |   |
| Balance Sheet Data:                                                                     |   |   |    |    |   |   |    |   |   |   |    |    |   |   |    |   |   |   |   |   |
|   Total Assets                                                                |   | $      | 347,695 |    |   | $      | 387,430 |   |   | $      | 412,686 |    |   | $      | 399,258 |   |   | $ | 334,426 |   |
|   Long-Term Debt—less current portion                                   |   |   | ---     |    |   |   | 13,000  |   |   |   | 23,500  |    |   |   | 34,000  |   |   |   | 44,500 |   |
| Employee Data:                                                                          |   |   |    |    |   |   |    |   |   |   |    |    |   |   |    |   |   |   |   |   |
|   Number of Employees                                                         |   |   | 1,506   |    |   |   | 1,638   |   |   |   | 1,745   |    |   |   | 1,719   |   |   |   | 1,728 |   |
|   Total Employment Costs                                                      |   | $      | 172,284 |    |   | $      | 192,132 |   |   | $      | 180,931 |    |   | $      | 179,482 |   |   | $ | 182,008 |   |
| Stockholder Data at Year-End:                                                           |   |   |    |    |   |   |    |   |   |   |    |    |   |   |    |   |   |   |   |   |
|   Number of Stockholders                                                      |   |   | 1,432   |    |   |   | 1,470   |   |   |   | 1,511   |    |   |   | 1,557   |   |   |   | 1,655 |   |
|  Common Shares Outstanding (in       thousands) |   |   | 25,457  |    |   |   | 26,253  |   |   |   | 27,619  |    |   |   | 28,734  |   |   |   | 30,155 |   |

|  (a) | Includes goodwill impairment charges of $6,634 in 2010, $17,805 in 2009 and $11,576 in 2006. |
|-----------|----------------------------------------------------------------------------------------------|

|  (b) | Includes a $92,524 gain ($56,433 net of tax) on the sale of the Company’s headquarters buildings in 2007. |
|-----------|-----------------------------------------------------------------------------------------------------------------|

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PART II

| Item 7. |  Management's Discussion and Analysis of Financial Condition and Results of Operations |
|---------|---------------------------------------------------------------------------------------------|

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Results of Operations

| Segment Information                                     |   |       |    |       |   |
|---------------------------------------------------------|--------|------------|---------|------------|--------|
| (as of December 31, in thousands of dollars)            |   |       |    |       |   |   |   |
|                                                    |   |  2010 |    |  2009 |   |  2008 |   |
| Revenues from external customers:                       |   |       |    |       |   |
|    Legal, Tax, and Regulatory Publishing |   | $          | 261,473 |       | $      | 255,670 |   | $ | 262,335 |   |
|    Specialized Business Publishing       |   |       | 13,582  |       |   | 23,103 |   |   | 28,202 |   |
|    Printing                              |   |       | 24,731  |       |   | 23,437 |   |   | 33,125 |   |
|    Software                              |   |       | 31,223  |       |   | 29,043 |   |   | 28,549 |   |
|                                                    |   |       |    |       |   |   |   |   |   |   |
| Total                                                   |   | $          | 331,009 |       | $      | 331,253 |   | $ | 352,211 |   |
|  Intersegment revenues:                            |   |       |    |       |   |   |   |   |   |   |
|   Specialized business publishing             |   | $          | 49      |       | $      | 49 |   | $ | --- |   |
|   Printing                                    |   | $          | 9,631   |       | $      | 10,773 |   | $ | 10,536 |   |
|   Software                                    |   | $          | 2,418   |       | $      | 2,470 |   | $ | 2,507 |   |

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|                                                    |   | 2010   |    | 2009   |   | 2008    |   |
|---------------------------------------------------------|--------|--------|---------|--------|--------|---------|--------|
| Operating Profit (Loss):                                |   |   |    |   |   |    |   |
|    Legal, Tax, and Regulatory Publishing |   | $      | 48,244  |   | $      | 35,605  |   | $ | 39,130 |   |
|    Specialized Business Publishing       |   |   | (12,038 | )      |   | (20,540 | )      |   | (517 | ) |
|    Printing                              |   |   | (715    | )      |   | 839     |   |   | 1,805 |   |
|    Software                              |   |   | 11,151  |   |   | 7,870   |   |   | 8,465 |   |
|                                                    |   |   |    |   |   |    |   |   |   |   |
| Total                                                   |   | $      | 46,642  |   | $      | 23,774  |   | $ | 48,883 |   |
|                                                    |   |   |    |   |   |    |   |   |   |   |

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|                           | Payments Due by Period |   |
|--------------------------------|------------------------|--------|
|  Contractual Obligations: |   Total      |   | Less than 1 Year |   | 1-3 Years |   | 3-5 Years |   | After 5 Years |   |
| Term Debt (includes interest)  | $                      | 13,454 |   | $ | 13,454 |   | $ | --- |   | $ | --- |   | $ | --- |   |
| Operating Leases               |                   | 16,766 |   |   | 2,920 |   |   | 3,727 |   |   | 3,161 |   |   | 6,958 |   |
| Planned Pension Contributions  |                   | 2,000  |   |   | 2,000 |   |   | --- |   |   | --- |   |   | --- |   |
| Total                          | $                      | 32,220 |   | $ | 18,374 |   | $ | 3,727 |   | $ | 3,161 |   | $ | 6,958 |   |

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| Item 7A. | Quantitative and Qualitative Disclosures about Market Risk |
|----------|------------------------------------------------------------|

The 

| Expected Maturity Date                         | 2011                                     | 2012                                           | 2013                                           | 2014                                          | 2015                                          | Thereafter                   |
|------------------------------------------------|------------------------------------------|------------------------------------------------|------------------------------------------------|-----------------------------------------------|-----------------------------------------------|------------------------------|
|                                           |                                     |                                           |                                           |                                          |                                          |                         |
| Municipal Bonds                                | $15,260                                  | $3,517                                         | $  5,921                             | $  2,785                            | $  2,156                            | $59,069                      |
|                                           |                                     |                                           |                                           |                                          |                                          |                         |
|     Average Interest Yield |      5.0%       |       5.0%       |        5.0% |       5.0%      |       5.1%      |     3.3% |
|                                           |                                     |                                           |                                           |                                          |                                          |                         |
| Corporate Bonds                                | $     195       | ---                                            | ---                                            |        --- |        --- | ---                          |
|                                           |                                     |                                           |                                           |                                          |                                          |                         |
|     Average Interest Yield |       5.0% | ---                                            |       ---        |        --- |        --- | ---                          |
|                                           |                                     |                                           |                                           |                                          |                                          |                         |
| Total                                          | $15,455                                  | $3,517                                         | $  5,921                             | $  2,785                            | $  2,156                            | $59,069                      |
|     Average Interest Yield |       5.0% |        5.0% |        5.0% |       5.0%      |       5.1%      |     3.3% |

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| Item 8. | Financial Statements and Supplementary Data |
|---------|---------------------------------------------|

Consolidated Financial Statements

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|                                                              |   | 2010   |      | 2009    |   | 2008    |    |
|-------------------------------------------------------------------|--------|--------|-----------|---------|--------|---------|---------|
|                                                              |   |   |      |    |   |    |    |   |   |   |
| Operating Revenues (Note 2)                                       |   | $      | 331,009   |    | $      | 331,253 |    | $ | 352,211 |   |
|                                                              |   |   |      |    |   |    |    |   |   |   |
| Operating Expenses                                                |   |   |      |    |   |    |    |   |   |   |
|    (Notes 2, 4, 6, 8  and 10): |   |   |      |    |   |    |    |   |   |   |
|   Editorial, production, and distribution               |   |   | 162,374   |    |   | 177,870 |    |   | 188,114 |   |
|   Selling                                               |   |   | 44,981    |    |   | 54,261  |    |   | 55,286 |   |
|   General and administrative                            |   |   | 70,378    |    |   | 57,543  |    |   | 59,928 |   |
|   Goodwill impairment                                   |   |   | 6,634     |    |   | 17,805  |    |   | --- |   |
|                                                              |   |   |      |    |   |    |    |   |   |   |
|     Total Operating Expenses                  |   |   | 284,367   |    |   | 307,479 |    |   | 303,328 |   |
|                                                              |   |   |      |    |   |    |    |   |   |   |
| Operating Profit                                                  |   |   | 46,642    |    |   | 23,774  |    |   | 48,883 |   |
|                                                              |   |   |      |    |   |    |    |   |   |   |
| Investment income (Note 5)                                        |   |   | 4,818     |    |   | 4,407   |    |   | 4,579 |   |
| Interest expense (Note 9)                                         |   |   | (1,750    | )       |   | (2,519  | )       |   | (3,277 | ) |
| Equity loss of affliated company (Note 3)                    |   |   |  (67 | )  |   | (137    | )  |   |  --- |   |
|                                                              |   |   |      |    |   |    |    |   |   |   |
| Income Before Income Taxes                                        |   |   | 49,643    |    |   | 25,525  |    |   | 50,185 |   |
| Provision for income taxes (Note 7)                               |   |   | 22,034    |    |   | 8,030   |    |   | 18,744 |   |
|                                                              |   |   |      |    |   |    |    |   |   |   |
| Net Income                                                        |   | $      | 27,609    |    | $      | 17,495  |    | $ | 31,441 |   |
|                                                              |   |   |      |    |   |    |    |   |   |   |
| Earnings Per Share (Note 11)                                      |   | $      | 1.07      |    | $      | .65     |    | $ | 1.11 |   |
|                                                              |   |   |      |    |   |    |    |   |   |   |

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|                                           |   | December 31, |    |
|------------------------------------------------|--------|--------------|---------|
|                                           |   |         |    |   |   |   |
|                                           |   | 2010         |    |   | 2009 |   |
| Current Assets:                                |   |         |    |   |   |   |
|   Cash and cash equivalents (Note 5) |   | $            | 16,464  |   |   | $ | 9,757 |   |
|   Short-term investments (Note 5)    |   |         | 15,259  |   |   |   | 14,445 |   |
|   Receivables, net (Note 8)          |   |         | 36,826  |   |   |   | 32,604 |   |
|   Inventories, net (Note 8)          |   |         | 1,457   |   |   |   | 2,935 |   |
|   Prepaid expenses                   |   |         | 4,609   |   |   |   | 3,739 |   |
|   Deferred income taxes (Note 7)     |   |         | 4,666   |   |   |   | 5,652 |   |
|                                           |   |         |    |   |   |   |   |   |
| Total Current Assets                           |   |         | 79,281  |   |   |   | 69,132 |   |
|                                           |   |         |    |   |   |   |   |   |
| Marketable Securities (Note 5)                 |   |         | 99,258  |   |   |   | 95,305 |   |
| Property and Equipment, net (Note 8)      |   |         | 109,200 |   |   |   | 115,036 |   |
| Deferred Income Taxes (Note 7)                 |   |         | 10,308  |   |   |   | 51,601 |   |
| Goodwill (Note 6)                              |   |         | 37,098  |   |   |   | 44,962 |   |
| Intangible and Other Assets, net (Note 8) |   |         | 12,550  |   |   |   | 11,394 |   |
|                                           |   |         |    |   |   |   |   |   |
| Total Assets                                   |   | $            | 347,695 |   |   | $ | 387,430 |   |

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|                                                                 |   | December 31, |     |
|----------------------------------------------------------------------|--------|--------------|----------|
|                                                                 |   |         |     |   |   |   |
|                                                                 |   | 2010         |     |   | 2009 |   |
| Current Liabilities:                                                 |   |         |     |   |   |   |
|   Current portion of long-term debt (Note 9)               |   | $            | 13,000   |   |   | $ | 10,500 |   |
|   Payables and accrued liabilities (Note 8)                |   |         | 39,377   |   |   |   | 38,606 |   |
|   Deferred revenues (Note 2)                               |   |         | 130,411  |   |   |   | 125,378 |   |
|                                                                 |   |         |     |   |   |   |   |   |
| Total Current Liabilities                                            |   |         | 182,788  |   |   |   | 174,484 |   |
|                                                                 |   |         |     |   |   |   |   |   |
| Long-Term Debt, less current portion  (Note 9)             |   |         | ---      |   |   |   | 13,000 |   |
| Postretirement Benefits, less current portion (Note 4)               |   |         | 113,488  |   |   |   | 210,533 |   |
| Other Liabilities                                                    |   |         | 860      |   |   |   | 1,381 |   |
|                                                                 |   |         |     |   |   |   |   |   |
| Total Liabilities                                                    |   |         | 297,136  |   |   |   | 399,398 |   |
|                                                                 |   |         |     |   |   |   |   |   |
| Commitments and Contingencies (Notes 10, and 11)                     |   |         |     |   |   |   |   |   |
|                                                                 |   |         |     |   |   |   |   |   |
| Stockholders’ Equity (Deficit) (Note 11):                 |   |         |     |   |   |   |   |   |
|   Common stock issued, $1.00 par value —             |   |         |     |   |   |   |   |   |
|     Class A – 30,000,000 shares            |   |         | 30,000   |   |   |   | 30,000 |   |
|     Class B – 24,634,865 shares            |   |         | 24,635   |   |   |   | 24,635 |   |
|     Class C – 2,531,680 shares             |   |         | 2,532    |   |   |   | 2,532 |   |
|   Additional paid-in capital                               |   |         | 52,635   |   |   |   | 47,511 |   |
|   Retained earnings                                        |   |         | 240,560  |   |   |   | 224,406 |   |
|   Treasury stock, at cost – 31,709,269 shares        |   |         |     |   |   |   |   |   |
|     in 2010 and 30,913,320 in 2009               |   |         | (295,634 | ) |   |   | (277,749 | ) |
|   Accumulated other comprehensive loss:                    |   |         |     |   |   |   |   |   |
|     Net unrealized gain on marketable securities |   |         | 2,000    |   |   |   | 1,366 |   |
|     Foreign currency translation adjustment      |   |         | (123     | ) |   |   | (129 | ) |
|     Postretirement benefits                      |   |         | (6,046   | ) |   |   | (64,540 | ) |
|                                                                 |   |         |     |   |   |   |   |   |
| Total Stockholders’ Equity (Deficit)                      |   |         | 50,559   |   |   |   | (11,968 | ) |
|                                                                 |   |         |     |   |   |   |   |   |
| Total Liabilities and Stockholders’ Equity (Deficit)           |   | $            | 347,695  |   |   | $ | 387,430 |   |

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|                                                                  |   |   |    |    |   |   |    |    |   |
|-----------------------------------------------------------------------|--------|--------|---------|---------|--------|--------|---------|---------|--------|
|                                                                  |   | 2010   |    |    | 2009   |   |    | 2008    |   |
|                                                                  |   |   |    |    |   |   |    |    |   |
| Cash Flows from Operating Activities:                                 |   |   |    |    |   |   |    |    |   |
|   Net income                                                |   | $      | 27,609  |    |   | $      | 17,495  |    |   | $ | 31,441 |   |
|                                                                  |   |   |    |    |   |   |    |    |   |   |   |   |
|   Adjustments to reconcile net income to net                |   |   |    |    |   |   |    |    |   |   |   |   |
|     cash provided by operating activities – |   |   |    |    |   |   |    |    |   |   |   |   |
|      Goodwill impairment                          |   |   | 6,634   |    |   |   | 17,805  |    |   |   | --- |   |
|      Depreciation and amortization                |   |   | 9,953   |    |   |   | 10,012  |    |   |   | 9,935 |   |
|      Deferred income taxes                        |   |   | 2,790   |    |   |   | (15,599 | )  |   |   | 721 |   |
|      (Gain) loss on sales of securities           |   |   | (1,340  | )       |   |   | (464    | )  |   |   | 314 |   |
|      Equity in loss of affiliated company         |   |   | 67      |    |   |   | 137     |    |   |   | --- |   |
|      Others                                       |   |   | 1,671   |    |   |   | 463     |    |   |   | 645 |   |
|                                                                  |   |   |    |    |   |   |    |    |   |   |   |   |
|   Changes in operating assets and liabilities –       |   |   |    |    |   |   |    |    |   |   |   |   |
|     Receivables                                   |   |   | (4,374  | )  |   |   | 3,151   |    |   |   | 7,182 |   |
|     Inventories                                   |   |   | 1,478   |    |   |   | (327    | )  |   |   | 535 |   |
|     Payables and accrued liabilities              |   |   | (63     | )       |   |   | (2,622  | )  |   |   | 1,219 |   |
|     Deferred revenues                             |   |   | 5,688   |    |   |   | (8,203  | )       |   |   | (6,414 | )  |
|     Postretirement benefits                       |   |   | 1,477   |    |   |   | 13,493  |    |   |   | 1,634 |   |
|     Other assets and liabilities – net      |   |   | (1,318  | )  |   |   | 587     |    |   |   | (482 | )  |
|                                                                  |   |   |    |    |   |   |    |    |   |   |   |   |
| Net cash provided by operating activities                             |   |   | 50,272  |    |   |   | 35,928  |    |   |   | 46,730 |   |
|                                                                  |   |   |    |    |   |   |    |    |   |   |   |   |
| Cash Flows from Investing Activities:                                 |   |   |    |    |   |   |    |    |   |   |   |   |
|     Acquisition of business (net of $56 cash      |   |   |    |    |   |   |    |    |   |   |   |   |
|     acquired in 2010)                             |   |   | (565    | )       |   |   | (4,300  | )  |   |   | --- |   |
|     Purchase of property and equipment            |   |   | (1,553  | )       |   |   | (1,319  | )       |   |   | (1,482 | ) |
|     Capitalized software                          |   |   | (3,101  | )       |   |   | (1,371  | )       |   |   | (1,007 | ) |
|     Acquisition of publishing assets              |   |   | ---     |    |   |   | (914    | )       |   |   | (831 | ) |
|     Proceeds from sale of property and equipment  |   |   | 26      |    |   |   | 31      |    |   |   | --- |   |
|     Investment security sales and maturities      |   |   | 52,490  |    |   |   | 55,399  |    |   |   | 67,765 |   |
|     Investment security purchases                 |   |   | (56,146 | )       |   |   | (41,672 | )       |   |   | (72,633 | ) |
|                                                                  |   |   |    |    |   |   |    |    |   |   |   |   |
| Net cash (used in) provided by investing activities              |   |   | (8,849  | )  |   |   | 5,854   |    |   |   | (8,188 | ) |

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Table of Contents

|                                                                 |   |   |    |   |   |   |    |   |   |
|----------------------------------------------------------------------|--------|--------|---------|--------|--------|--------|---------|--------|--------|
|                                                                 |   | 2010   |    |   | 2009   |   |    | 2008   |   |
|                                                                 |   |   |    |   |   |   |    |   |   |
| Cash Flows from Financing Activities:                                |   |   |    |   |   |   |    |   |   |
|   Receipts for capital stock sales to employees            |   |   | 9,565   |   |   |   | 9,690   |   |   |   | 11,175 |   |
|   Purchases of treasury stock                              |   |   | (22,326 | )      |   |   | (31,239 | )      |   |   | (28,449 | ) |
|   Payment of long-term debt                                |   |   | (10,500 | )      |   |   | (10,500 | )      |   |   | (10,500 | ) |
|   Dividends paid                                           |   |   | (11,455 | )      |   |   | (11,115 | )      |   |   | (11,418 | ) |
|                                                                 |   |   |    |   |   |   |    |   |   |   |   |   |
| Net cash used for financing activities                               |   |   | (34,716 | )      |   |   | (43,164 | )      |   |   | (39,192 | ) |
|                                                                 |   |   |    |   |   |   |    |   |   |   |   |   |
| Net Increase (Decrease) in Cash  and Cash Equivalents |   |   | 6,707   |   |   |   | (1,382  | )      |   |   | (650 | ) |
|                                                                 |   |   |    |   |   |   |    |   |   |   |   |   |
| Cash and Cash Equivalents, beginning of year                         |   |   | 9,757   |   |   |   | 11,139  |   |   |   | 11,789 |   |
|                                                                 |   |   |    |   |   |   |    |   |   |   |   |   |
| Cash and Cash Equivalents, end of year                               |   | $      | 16,464  |   |   | $      | 9,757   |   |   | $ | 11,139 |   |
|                                                                 |   |   |    |   |   |   |    |   |   |   |   |   |
|                                                                 |   |   |    |   |   |   |    |   |   |   |   |   |
| Supplemental Cash Flow Information:                                  |   |   |    |   |   |   |    |   |   |   |   |   |
|   Interest paid                                            |   | $      | 1,754   |   |   | $      | 2,651   |   |   | $ | 3,430 |   |
|   Income taxes paid                                        |   |   | 19,001  |   |   |   | 21,236  |   |   |   | 19,893 |   |

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Table of Contents

|                                                                  |   | Comprehensive |    | Capital |   |      | Additional |   |   |      |   |     |    | Accum. Other  |   |     |
|-----------------------------------------------------------------------|--------|---------------|---------|---------|--------|-----------|------------|--------|--------|-----------|--------|----------|---------|---------------|--------|----------|
|                                                                  |   | Income (Loss) |    | Stock   |   |      | Paid-In    |   |   | Retained  |   | Treasury |    | Comprehensive |   |     |
|                                                                  |   | (Note 12)     |    | Issued  |   |      | Capital    |   |   | Earnings  |   | Stock    |    | Loss          |   |     |
|                                                                  |   |          |    |    |   |      |       |   |   |      |   |     |    |          |
|  Balance, January 1, 2008                                        |   |          |    | $       | 57,167 |      |       | $      | 35,772 |      |   | $        | 198,003 |          | $      | (227,202 | ) | $ | (30,360 | )  |
|                                                                  |   |          |    |    |   |      |       |   |   |      |   |     |    |          |   |     |   |   |   |   |   |
|   Net Income                                                |   | $             | 31,441  |    |   | ---       |       |   |   | ---       |   |     |    | 31,441        |   |     | --- |   |   | --- |   |
|   Other Comprehensive Income, net of tax:                   |   |          |    |    |   |      |       |   |   |      |   |     |    |          |   |     |   |   |   |   |   |   |
|     Unrealized loss on marketable securities      |   |          | (5,523  | )  |   | ---       |       |   |   | ---       |   |     |    | ---           |   |     | --- |   |   | (5,523 | )  |
|     Currency translation adjustment               |   |          | 183     |    |   | ---       |       |   |   | ---       |   |     |    | ---           |   |     | --- |   |   | 183 |   |
|     Postretirement Benefit adjustment                  |   |          | (47,236 | )  |   |  --- |       |   |   |  --- |   |     |    |  ---     |   |     |  --- |   |   | (47,236 | )  |
|   Comprehensive Loss                                        |   | $             | (21,135 | )  |   |      |       |   |   |      |   |     |    |          |   |     |   |   |   |   |   |   |
|                                                                  |   |          |    |    |   |      |       |   |   |      |   |     |    |          |   |     |   |   |   |   |   |   |
|   Sales of Class A treasury shares to employees             |   |          |    |    |   | ---       |       |   |   | 6,409     |   |     |    | ---           |   |     | 4,749 |   |   | --- |   |
|   Repurchases of shares                                     |   |          |    |    |   | ---       |       |   |   | ---       |   |     |    | ---           |   |     | (28,449 | ) |   | --- |   |
|   Cash dividends--$.40 per share, class A, B, and C         |   |          |    |    |   | ---       |       |   |   | ---       |   |     |    | (11,418       | )      |     | --- |   |   | --- |   |
|                                                                  |   |          |    |    |   |      |       |   |   |      |   |     |    |          |   |     |   |   |   |   |   |   |
|  Balance, December 31, 2008,                                     |   |          |    |    |   | 57,167    |       |   |   | 42,181    |   |     |    | 218,026       |   |     | (250,902 | ) |   | (82,936 | ) |
|                                                                  |   |          |    |    |   |      |       |   |   |      |   |     |    |          |   |     |   |   |   |   |   |   |
|   Net Income                                                |   | $             | 17,495  |    |   | ---       |       |   |   | ---       |   |     |    | 17,495        |   |     | --- |   |   | --- |   |
|   Other Comprehensive Income, net of tax:                   |   |          |    |    |   |      |       |   |   |      |   |     |    |          |   |     |   |   |   |   |   |   |
|     Unrealized gain on marketable securities |   |          | 5,067   |    |   | ---       |       |   |   | ---       |   |     |    | ---           |   |     | --- |   |   | 5,067 |   |
|     Currency translation adjustment               |   |          | (25     | )  |   | ---       |       |   |   | ---       |   |     |    | ---           |   |     | --- |   |   | (25 | )  |
|     Postretirement Benefit adjustment                  |   |          | 14,591  |    |   | ---       |       |   |   | ---       |   |     |    | ---           |   |     | --- |   |   | 14,591 |   |
|   Comprehensive Income                                      |   | $             | 37,128  |    |   |      |       |   |   |      |   |     |    |          |   |     |   |   |   |   |   |   |
|                                                                  |   |          |    |    |   |      |       |   |   |      |   |     |    |          |   |     |   |   |   |   |   |   |
|   Sales of Class A treasury shares to employees             |   |          |    |    |   | ---       |       |   |   | 5,330     |   |     |    | ---           |   |     | 4,392 |   |   | --- |   |
|   Repurchases of shares                                     |   |          |    |    |   | ---       |       |   |   | ---       |   |     |    | ---           |   |     | (31,239 | ) |   | --- |   |
|   Cash dividends--$.41 per share, class A, B, and C         |   |          |    |    |   | ---       |       |   |   | ---       |   |     |    | (11,115       | )      |     | --- |   |   | --- |   |
|                                                                  |   |          |    |    |   |      |       |   |   |      |   |     |    |          |   |     |   |   |   |   |   |   |
| Balance, December 31, 2009                                            |   |          |    |    |   | 57,167    |       |   |   | 47,511    |   |     |    | 224,406       |   |     | (277,749 | ) |   | (63,303 | ) |
|                                                                  |   |          |    |    |   |      |       |   |   |      |   |     |    |          |   |     |   |   |   |   |   |   |
|   Net Income                                                |   | $             | 27,609  |    |   | ---       |       |   |   | ---       |   |     |    | 27,609        |   |     | --- |   |   | --- |   |
|   Other Comprehensive Income, net of tax:                   |   |          |    |    |   |      |       |   |   |      |   |     |    |          |   |     |   |   |   |   |   |   |
|     Unrealized gain on marketable securities      |   |          | 634     |    |   | ---       |       |   |   | ---       |   |     |    | ---           |   |     | --- |   |   | 634 |   |
|     Currency translation adjustment               |   |          | 6       |    |   | ---       |       |   |   | ---       |   |     |    | ---           |   |     | --- |   |   | 6 |   |
|     Postretirement Benefit adjustment             |   |          | 58,494  |    |   | ---       |       |   |   | ---       |   |     |    | ---           |   |     | --- |   |   | 58,494 |   |
|   Comprehensive Income                                      |   | $             | 86,743  |    |   |      |       |   |   |      |   |     |    |          |   |     |   |   |   |   |   |   |
|                                                                  |   |          |    |    |   |      |       |   |   |      |   |     |    |          |   |     |   |   |   |   |   |   |
|   Sales of Class A treasury shares to employees             |   |          |    |    |   | ---       |       |   |   | 5,124     |   |     |    | ---           |   |     | 4,441 |   |   | --- |   |
|   Repurchases of shares                                     |   |          |    |    |   | ---       |       |   |   | ---       |   |     |    | ---           |   |     | (22,326 | ) |   | --- |   |
|   Cash dividends--$.44 per share, class A, B, and C         |   |          |    |    |   | ---       |       |   |   | ---       |   |     |    | (11,455       | )      |     | --- |   |   | --- |   |
|                                                                  |   |          |    |    |   |      |       |   |   |      |   |     |    |          |   |     |   |   |   |   |   |   |
| Balance, December 31, 2010                                            |   |          |    |    | $      | 57,167    |       |   | $      | 52,635    |   |     | $       | 240,560       |   | $        | (295,634 | ) | $ | (4,169 | ) |

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Table of Contents

| (1)  |  PRINCIPLES OF CONSOLIDATION AND BASIS OF PRESENTATION |
|-----------|-------------------------------------------------------------|

| (2)  |  RECOGNITION OF REVENUES, DEFERRED REVENUES, AND SELLING EXPENSES |
|-----------|------------------------------------------------------------------------|

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Table of Contents

| (3)  |  ACQUISITION |
|-----------|-------------------|

| Consideration:                                                                         |   |   |   |
|----------------------------------------------------------------------------------------|--------|--------|--------|
|                                                                                   |   |   |   |
|   Cash                                                                       |   | $      | 4,921  |   |
|                                                                                   |   |   |   |   |
| Recognized amounts of identifiable assets  acquired and liabilities assumed: |   |   |   |   |
|   Software                                                                   |   | $      | 3,084  |   |
|   Deferred taxes                                                             |   |   | 953    |   |
|   Goodwill                                                                   |   |   | 1,079  |   |
|   Receivables and other                                                      |   |   | 137    |   |
|   Cash                                                                       |   |   | 56     |   |
|   Payables                                                                   |   |   | (432   | ) |
|   Deferred revenue                                                           |   |   | (160   | ) |
|                                                                                   |   |   |   |   |
|   Total identifiable net assets                                              |   |   | 4,717  |   |
|   Equity loss recognized prior to acquisition                                |   |   | 204    |   |
|                                                                                   |   |   |   |   |
|     Total                                                          |   | $      | 4,921  |   |

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Table of Contents

| (4)  |  EMPLOYEE BENEFIT PLANS |
|-----------|------------------------------|

|                                                                          |   |  Pension Benefits |      |   | Other Postretirement Benefits |   |
|-------------------------------------------------------------------------------|--------|------------------------|-----------|--------|-------------------------------|--------|
|                                                                          |   |                   |      |   |                          |   |   |   |   |   |   |   |
|                                                                          |   | 2010                   |      |   | 2009                          |   |   | 2010 |   |   | 2009 |   |
| Change in projected benefit obligation:                                       |   |                   |      |   |                          |   |   |   |   |   |   |   |
| Benefit obligation - January 1                                                |   | $                      | 234,865   |   |                          | $      | 212,204 |   |   | $ | 183,734 |   |   | $ | 177,325 |   |
| Service cost                                                                  |   |                   | 8,298     |   |                          |   | 8,034 |   |   |   | 3,321 |   |   |   | 6,470 |   |
| Interest cost                                                                 |   |                   | 13,588    |   |                          |   | 13,086 |   |   |   | 5,736 |   |   |   | 10,983 |   |
| Actuarial loss (gain)                                                         |   |                   | 7,824     |   |                          |   | 10,900 |   |   |   | 6,445 |   |   |   | (5,973 | )  |
| Plan amendment                                                           |   |                   |  --- |   |                          |   |  --- |   |   |   |  (109,457 | )  |   |   |  --- |   |
| Benefits paid                                                                 |   |                   | (9,363    | )      |                          |   | (9,359 | ) |   |   | (5,510 | ) |   |   | (5,071 | ) |
|                                                                          |   |                   |      |   |                          |   |   |   |   |   |   |   |   |   |   |   |
| Benefit obligation - December 31                                              |   |                   | 255,212   |   |                          |   | 234,865 |   |   |   | 84,269 |   |   |   | 183,734 |   |
|                                                                          |   |                   |      |   |                          |   |   |   |   |   |   |   |   |   |   |   |
| Change in plan assets:                                                        |   |                   |      |   |                          |   |   |   |   |   |   |   |   |   |   |   |
| Fair value of plan assets - January 1                                         |   |                   | 190,861   |   |                          |   | 153,304 |   |   |   | 17,120 |   |   |   | 16,442 |   |
| Actual return on plan assets                                                  |   |                   | 22,851    |   |                          |   | 31,819 |   |   |   | 1,078 |   |   |   | 1,311 |   |
| Employer contribution                                                         |   |                   | 4,000     |   |                          |   | 15,000 |   |   |   | --- |   |   |   | --- |   |
| Benefits paid                                                                 |   |                   | (9,278    | )      |                          |   | (9,262 | ) |   |   | (700 | ) |   |   | (633 | )  |
| Fair value of plan assets - December 31                                       |   |                   | 208,434   |   |                          |   | 190,861 |   |   |   | 17,498 |   |   |   | 17,120 |   |
|                                                                          |   |                   |      |   |                          |   |   |   |   |   |   |   |   |   |   |   |
| Funded status                                                                 |   | $                      | (46,778   | )      |                          | $      | (44,004 | ) |   | $ | (66,771 | ) |   | $ | (166,614 | ) |
|                                                                          |   |                   |      |   |                          |   |   |   |   |   |   |   |   |   |   |   |
| Amounts recognized in the balance sheet                                       |   |                   |      |   |                          |   |   |   |   |   |   |   |   |   |   |   |
|   Payables and accrued liabilities                                  |   |                   | (61       | )      |                          |   | (85 | ) |   |   | --- |   |   |   | --- |   |
|   Postretirement benefits                                           |   |                   | (46,717   | )      |                          |   | (43,919 | ) |   |   | (66,771 | ) |   |   | (166,614 | ) |
|                                                                          |   |                   |      |   |                          |   |   |   |   |   |   |   |   |   |   |   |
| Net amount recognized                                                         |   | $                      | (46,778   | )      |                          | $      | (44,004 | ) |   | $ | (66,771 | ) |   | $ | (166,614 | ) |
|                                                                          |   |                   |      |   |                          |   |   |   |   |   |   |   |   |   |   |   |
| Amounts included in accumulated other  comprehensive loss (pre-tax) |   |                   |      |   |                          |   |   |   |   |   |   |   |   |   |   |   |
|   Net actuarial loss                                                |   |                   | (55,145   | )      |                          |   | (57,459 | ) |   |   | (53,611 | ) |   |   | (50,858 | ) |
|   Prior service cost                                                |   |                   | (306      | )      |                          |   | (371 | ) |   |   | 98,916 |   |   |   | --- |   |
|                                                                          |   |                   |      |   |                          |   |   |   |   |   |   |   |   |   |   |   |
| Total                                                                         |   | $                      | (55,451   | )      |                          | $      | (57,830 | ) |   | $ | 45,305 |   |   | $ | (50,858 | ) |
|                                                                          |   |                   |      |   |                          |   |   |   |   |   |   |   |   |   |   |   |
| Assumed discount rate                                                         |   |                   | 5.65      | %      |                          |   | 6.00 | % |   |   | 5.65 | % |   |   | 6.00 | % |
| Assumed rate of compensation increase                                         |   |                   | 4.75      | %      |                          |   | 4.75 | % |   |   | --- |   |   |   | --- |   |

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Table of Contents

|                    |     |   | Other          |
|-------------------------|----------|--------|----------------|
|                    | Pension  |   | Postretirement |
|                    | Benefits |   | Benefits       |
| 2011                    | $        | 13,119 |           | $ | 4,566 |
| 2012                    |     | 14,239 |           |   | 5,103 |
| 2013                    |     | 15,055 |           |   | 5,588 |
| 2014                    |     | 16,089 |           |   | 6,064 |
| 2015                    |     | 17,032 |           |   | 6,434 |
| Years 2016 – 2020 |     | 97,640 |           |   | 34,977 |

|                                           | Pension Benefits |
|------------------------------------------------|------------------|
|                                           |   2010      |   |   2009 |
| Projected benefit obligation                   | $                | 255,212 |   | $ | 234,865 |
| Accumulated benefit obligation                 |             |   |   |   |   |
|   Qualified plan                     |             | 217,234 |   |   | 195,410 |
|   Supplemental plan                  |             | 2,651 |   |   | 2,349 |
| Fair value of plan assets–qualified plan |             | 208,434 |   |   | 190,861 |
|                                           |             |   |   |   |   |

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Table of Contents

|                                                 |   | 2010   |       | 2009    |   | 2008       |   |
|------------------------------------------------------|--------|--------|------------|---------|--------|------------|--------|
| Service cost – benefits earned during the year |   | $      | 8,298      |    | $      | 8,034      |   | $ | 7,568 |   |
| Interest cost                                        |   |   | 13,588     |    |   | 13,086     |   |   | 12,267 |   |
| Expected return on plan assets                       |   |   | (15,839    | )       |   | (13,270    | )      |   | (15,513 | ) |
| Amortization of net actuarial loss                   |   |   | 3,125      |    |   | 4,982      |   |   | 108 |   |
| Amortization of prior service cost                   |   |   | 66         |    |   | 62         |   |   | 62 |   |
|                                                 |   |   |       |    |   |       |   |   |   |   |
| Pension expense                                      |   | $      | 9,238      |    | $      | 12,894     |   | $ | 4,492 |   |
|                                                 |   |   |       |    |   |       |   |   |   |   |
| Assumed discount rate                           |   |   |  6.00 | %  |   | 6.25  | %      |   | 6.35  | %  |
| Assumed rate of compensation increase                |   |   |  4.75 | %  |   | 4.75  | %      |   | 4.75  | %  |
| Expected long-term return on plan assets             |   |   |  8.5  | %  |   | 8.5   | %      |   | 8.5  | %  |

|                                           |   | 2010   |   |    | 2009   |   |
|------------------------------------------------|--------|--------|--------|---------|--------|--------|
| Net gain (loss)                                |   | $      | (812   | )  |   | $      | 7,649 |   |
| Amortization of net actuarial loss             |   |   | 3,125  |    |   |   | 4,982 |   |
| Amortization of prior service cost             |   |   | 66     |    |   |   | 62 |   |
|                                           |   |   |   |    |   |   |   |   |
| Total recognized in other comprehensive income |   | $      | 2,379  |    |   | $      | 12,693 |   |

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Table of Contents

|                                                 | 2010   |   | 2009       | 2008    |
|------------------------------------------------------|--------|--------|------------|---------|
| Service cost – benefits earned during the year |   | $      | 3,321      |    | $ | 6,470 |   | $ | 5,748 |   |
| Interest cost                                        |   |   | 5,736      |    |   | 10,983 |   |   | 9,795 |   |
| Expected return on plan assets                       |   |   | (1,356     | )       |   | (1,398 | ) |   | (2,210 | ) |
| Amortization of net actuarial loss                   |   |   | 3,970      |    |   | 4,067 |   |   | 2,369 |   |
| Amortization of prior service cost                   |   |   | (10,540    | )  |   | --- |   |   | --- |   |
|                                                 |   |   |       |    |   |   |   |   |   |   |
| Other postretirement benefits expense                |   | $      | 1,131      |    | $ | 20,122 |   | $ | 15,702 |   |
|                                                 |   |   |       |    |   |   |   |   |   |   |
| Assumed discount rate                           |   |   |  6.00 | %  |   |  6.25 | %  |   | 6.35 | % |
| Expected long-term return on plan assets   |   |   |  8.5  | %  |   | 8.5  | %  |   | 8.5 | % |

|                                                  |   | 2010   |          |    | 2009   |
|-------------------------------------------------------|--------|--------|---------------|---------|--------|
| Net gain (loss)                                       |   | $      | (6,724        | )  |   | $ | 5,886 |   |
| Plan amendment                              |   |   |  109,457 |    |   |   |  --- |   |
| Amortization of net actuarial loss                    |   |   | 3,970         |    |   |   | 4,067 |   |
| Amortization of prior service cost                    |   |   |  (10,540 | )  |   |   |  --- |   |
|                                                  |   |   |          |    |   |   |   |   |
| Total recognized in other comprehensive income (loss) |   | $      | 96,163        |    |   | $ | 9,953 |   |

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Table of Contents

|                                                              | Assets at Fair Value as of December 31, 2010 |
|-------------------------------------------------------------------|----------------------------------------------|
|                                                              |                                         | Level 1 |   | Level 2 |   | Level 3 |   |   | Total |
|                                                              |                                         |   |   |   |   |   |   |   |   |
| Common stock                                                      | $                                            | 107,599 |   | --- |   | --- |   | $ | 107,599 |
| Preferred stock                                                   |                                         | 624 |   | --- |   | --- |   |   | 624 |
| Corporate and other debt     instruments |                                         | 28,647 |   | --- |   | --- |   |   | 28,647 |
| U.S. government securities                                        |                                         | 31,007 |   | --- |   | --- |   |   | 31,007 |
| Mutual funds                                                      |                                         | 23,744 |   | --- |   | --- |   |   | 23,744 |
| Money market funds and cash                                       |                                         | 16,114 |   | --- |   | --- |   |   | 16,114 |
|                                                              |                                         |   |   |   |   |   |   |   |   |
| Total                                                             | $                                            | 207,735 |   | --- |   | --- |   | $ | 207,735 |

|                                                              | Assets at Fair Value as of December 31, 2009 |
|-------------------------------------------------------------------|----------------------------------------------|
|                                                              |                                         | Level 1 |   | Level 2 |   | Level 3 |   |   | Total |
|                                                              |                                         |   |   |   |   |   |   |   |   |
| Common stock                                                      | $                                            | 95,294 |   | --- |   | --- |   | $ | 95,294 |
| Preferred stock                                              |                                         | 481  |   |   |   |   |   |   | 481   |
| Corporate and other debt     instruments |                                         | 33,727 |   | --- |   | --- |   |   | 33,727 |
| U.S. government securities                                        |                                         | 26,933 |   | --- |   | --- |   |   | 26,933 |
| Mutual funds                                                      |                                         | 20,421 |   |   |   |   |   |   | 20,421 |
| Money market funds and cash                                       |                                         | 13,245 |   | --- |   | --- |   |   | 13,245 |
|                                                              |                                         |   |   |   |   |   |   |   |   |
| Total                                                             | $                                            | 190,101 |   | --- |   | --- |   | $ | 190,101 |

|                                                              | Assets at Fair Value as of December 31, 2010 |
|-------------------------------------------------------------------|----------------------------------------------|
|                                                              |                                         | Level 1 |   | Level 2 |   | Level 3 |   |   | Total |
|                                                              |                                         |   |   |   |   |   |   |   |   |
| Common stock                                                      | $                                            | 3,977 |   | --- |   | --- |   | $ | 3,977 |
| Corporate and other debt     instruments |                                         | 2,627 |   | --- |   | --- |   |   | 2,627 |
| U.S. government securities                                        |                                         | 7,046 |   | --- |   | --- |   |   | 7,046 |
| Mutual funds                                                      |                                         | 1,573 |   | --- |   | --- |   |   | 1,573 |
| Money market funds and cash                                       |                                         | 2,164 |   | --- |   | --- |   |   | 2,164 |
|                                                              |                                         |   |   |   |   |   |   |   |   |
| Total                                                             | $                                            | 17,387 |   | --- |   | --- |   | $ | 17,387 |

----

Table of Contents

|                                                              | Assets at Fair Value as of December 31, 2009 |
|-------------------------------------------------------------------|----------------------------------------------|
|                                                              |                                         | Level 1 |   | Level 2 |   | Level 3 |   |   | Total |
|                                                              |                                         |   |   |   |   |   |   |   |   |
| Common stock                                                      | $                                            | 1,984 |   | --- |   | --- |   | $ | 1,984 |
| Corporate and other debt     instruments |                                         | 4,346 |   | --- |   | --- |   |   | 4,346 |
| U.S. government securities                                        |                                         | 8,908 |   | --- |   | --- |   |   | 8,908 |
| Mutual funds                                                      |                                         | 228 |   |   |   |   |   |   | 228 |
| Money market funds                                                |                                         | 1,531 |   | --- |   | --- |   |   | 1,531 |
|                                                              |                                         |   |   |   |   |   |   |   |   |
| Total                                                             | $                                            | 16,997 |   | --- |   | --- |   | $ | 16,997 |

| (5) | INVESTMENTS AND INVESTMENT INCOME |
|-----|-----------------------------------|

|                      | December 31, |
|---------------------------|--------------|
|                      | 2010         |   |   |  2009 |
|                      |         |   |   |   |
| Cash and cash equivalents | $            | 16,464 |   |  $ | 9,757 |
| Short-term investments    |         | 15,259 |   |   | 14,445 |
| Marketable securities     |         | 99,258 |   |   | 95,305 |
|                      |         |   |   |   |   |
| Total                     | $            | 130,981 |   |  $ |  119,507 |

|                                   |   | 2010   |   |   | 2009   |   | 2008   |   |
|----------------------------------------|--------|--------|--------|--------|--------|--------|--------|--------|
|                                   |   |   |   |   |   |   |   |   |
| Interest income                        |   | $      | 3,140  |   |   | $      | 3,676  |   |   | $ | 4,591 |   |
| Dividend income                        |   |   | 338    |   |   |   | 267    |   |   |   | 302 |   |
| Net gain (loss) on sales of securities |   |   | 1,340  |   |   |   | 464    |   |   |   | (314 | )  |
|                                   |   |   |   |   |   |   |   |   |   |   |   |   |
| Total                                  |   | $      | 4,818  |   |   | $      | 4,407  |   |   | $ | 4,579 |   |

----

Table of Contents

|              |      |   |       |   |       |   |   |
|-------------------|-----------|--------|------------|--------|------------|--------|--------|
|              |      |   | Gross      |   | Gross      |   |   |
|              | Amortized |   | Unrealized |   | Unrealized |   | Fair   |
|              | Cost      |   | Gains      |   | Losses     |   | Value  |
| December 31, 2010 |      |   |       |   |       |   |   |   |   |   |   |   |   |
| Equity securities |      | $      | 23,969     |   | $          | 1,870  |   | $ | (225 | ) | $ | 25,614 |   |
| Municipal bonds   |      |   | 87,231     |   |       | 1,840  |   |   | (363 | ) |   | 88,708 |   |
| Corporate debt    |      |   | 191        |   |       | 4      |   |   | --- |   |   | 195 |   |
|              |      |   |       |   |       |   |   |   |   |   |   |   |   |
| Total             |      | $      | 111,391    |   | $          | 3,714  |   | $ | (588 | ) | $ | 114,517 |   |
|              |      |   |       |   |       |   |   |   |   |   |   |
|              |      |   |       |   | Gross      |   | Gross  |   |   |
|              | Amortized |   | Unrealized |   | Unrealized |   | Fair   |
|              | Cost      |   | Gains      |   | Losses     |   | Value  |
| December 31, 2009 |      |   |       |   |       |   |   |   |   |   |   |   |   |
| Equity securities |      | $      | 18,122     |   | $          | 430    |   | $ | (1,498 | ) | $ | 17,054 |   |
| Municipal bonds   |      |   | 88,150     |   |       | 3,237  |   |   | (102 | ) |   | 91,285 |   |
| Corporate debt    |      |   | 1,376      |   |       | 35     |   |   | --- |   |   | 1,411 |   |
|              |      |   |       |   |       |   |   |   |   |   |   |   |   |
| Total             |      | $      | 107,648    |   | $          | 3,702  |   | $ | (1,600 | ) | $ | 109,750 |   |

|              |   |   | Gross Unrealized Losses |   |
|-------------------|--------|--------|-------------------------|--------|
|              | Fair   |   | Less than               |   | More than |   |
|              | Value  |   | 12 months               |   | 12 Months |   |
| December 31, 2010 |   |   |                    |   |   |   |   |   |
| Equity securities |   | $      | 6,312                   |   |   | $ | (13 | )  |   | $ | (212 | ) |
| Municipal bonds   |   |   | 13,647                  |   |   |   | (290 | ) |   |   | (73 | ) |
|              |   |   |                    |   |   |   |   |   |   |   |   |   |
| Total             |   | $      | 19,959                  |   |   | $ | (303 | ) |   | $ | (285 | ) |
|              |   |   |                    |   |   |   |
|              |   |   |                    |   |   |   |
|              |   |   |                    |   | Gross Unrealized Losses |   |
|              | Fair   |   | Less than               |   | More than |   |
|              | Value  |   | 12 months               |   | 12 Months |   |
| December 31, 2009 |   |   |                    |   |   |   |   |   |   |   |   |   |
| Equity securities |   | $      | 14,582                  |   |   | $ | --- |   |   | $ | (1,498 | )  |
| Municipal bonds   |   |   | 4,270                   |   |   |   | (5 | ) |   |   | (97 | ) |
|              |   |   |                    |   |   |   |   |   |   |   |   |   |
| Total             |   | $      | 18,852                  |   |   | $ | (5 | ) |   | $ | (1,595 | ) |

----

Table of Contents

|                   | Amortized |   | Fair   |
|------------------------|-----------|--------|--------|
|                   | Cost      |   | Value  |
|                   |      |   |   |   |   |
| Within one year        | $         | 15,250 |   | $ | 15,455 |
| One through five years |      | 13,747 |   |   | 14,379 |
| Five through ten years |      | 11,213 |   |   | 11,682 |
| Over ten years         |      | 47,212 |   |   | 47,387 |
|                   |      |   |   |   |   |
| Total                  | $         | 87,422 |   | $ | 88,903 |

| (6) | GOODWILL |
|-----|----------|

----

Table of Contents

|                                                                                                                                                                                                                                                                                                                                                                                                                                                                                       |   |  LTR |   |   |  SB |   |    |  Printing |   |   |  Software |   |   |  Total |      |
|--------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|--------|-----------|--------|--------|----------|--------|---------|----------------|--------|--------|----------------|--------|--------|-------------|-----------|
|                                                                                 |   |      |   |   |     |   |    |           |   |   |           |   |   |        |      |
| Balance, January 1, 2008                                                                                                                                                                                                                                                                                                                                                                                                                                                                   |   | $         | 6,195  |   |     | $      | 32,229  |           |   | $      | 917            |   |   | $           | 22,449    |   |   | $ | 61,790 |   |
| Balance, Dec. 31, 2008                                                                                                                                                                                                                                                                                                                                                                                                                                                                     |   |      | 6,195  |   |     |   | 32,229  |           |   |   | 917            |   |   |        | 22,449    |   |   |   | 61,790 |   |
| Impairment loss                                                                                                                                                                                                                                                                                                                                                                                                                                                                            |   |      | ---    |   |     |   | (17,805 | )              |   |   | ---            |   |   |        | ---       |   |   |   | (17,805 | ) |
| Acquired during year                                                                                                                                                                                                                                                                                                                                                                                                                                                                       |   |      | 977    |   |     |   | ---     |           |   |   | ---            |   |   |        | ---       |   |   |   | 977 |   |
| Balance, Dec. 31, 2009                                                                                                                                                                                                                                                                                                                                                                                                                                                                     |   |      |   |   |     |   |    |           |   |   |           |   |   |        |      |   |   |   |   |   |
|   Goodwill                                                                                                                                                                                                                                                                                                                                                                                                                                                                       |   |      | 7,172  |   |     |   | 32,229  |           |   |   | 917            |   |   |        | 22,449    |   |   |   | 62,767 |   |
|   Accum impairment loss                                                                                                                                                                                                                                                                                                                                                                                                                                                          |   |      | ---    |   |     |   | (17,805 | )              |   |   | ---            |   |   |        | ---       |   |   |   | (17,805 | ) |
|                                                                                                                                                                                                                                                                                                                                                                                                                                                                                       |   |      | 7,172  |   |     |   | 14,424  |           |   |   | 917            |   |   |        | 22,449    |   |   |   | 44,962 |   |
| Publications sold                                                                                                                                                                                                                                                                                                                                                                                                                                                                          |   |      | ---    |   |     |   | (2,309  | )              |   |   | ---            |   |   |        | ---       |   |   |   | (2,309 | ) |
| Publications transferred                                                                                                                                                                                                                                                                                                                                                                                                                                                                   |   |      | 5,481  |   |     |   | (5,481  | )              |   |   | ---            |   |   |        | ---       |   |   |   | --- |   |
| Acquired during year (Note 3)                                                                                                                                                                                                                                                                                                                                                                                                                                                         |   |      | 1,079  |   |     |   | ---     |           |   |   |  ---      |   |   |        |  --- |   |   |   |  1,079 |   |
| Impairment loss                                                                                                                                                                                                                                                                                                                                                                                                                                                                            |   |      | ---    |   |     |   | (6,634  | )              |   |   | ---            |   |   |        | ---       |   |   |   | (6,634 | ) |
|                                                                                                                                                                                                                                                                                                                                                                                                                                                                                       |   |      |   |   |     |   |    |           |   |   |           |   |   |        |      |   |   |   |   |   |
| Balance, Dec. 31, 2010                                                                                                                                                                                                                                                                                                                                                                                                                                                                     |   |      |   |   |     |   |    |           |   |   |           |   |   |        |      |   |   |   |   |   |
|   Goodwill                                                                                                                                                                                                                                                                                                                                                                                                                                                                       |   |      | 13,732 |   |     |   | 24,439  |           |   |   | 917            |   |   |        | 22,449    |   |   |   | 61,537 |   |
|   Accum impairment loss                                                                                                                                                                                                                                                                                                                                                                                                                                                          |   |      | ---    |   |     |   | (24,439 | )              |   |   | ---            |   |   |        | ---       |   |   |   | (24,439 | ) |
|                                                                                                                                                                                                                                                                                                                                                                                                                                                                                       |   | $         | 13,732 |   |     | $      | ---     |           |   | $      | 917            |   |   | $           | 22,449    |   |   | $ | 37,098 |   |

| (7) | INCOME TAXES |
|-----|--------------|

|                              |   |   |   |   |   |   |    |    |   |
|-----------------------------------|--------|--------|--------|--------|--------|--------|---------|---------|--------|
|                              |   | 2010   |   |   | 2009   |   | 2008    |    |   |
| Taxes currently payable:          |   |   |   |   |   |   |    |
|    Federal         |   | $      | 15,944 |   |   | $      | 19,422  |    | $      | 14,868 |   |
|    State and local |   |   | 3,300  |   |   |   | 4,207   |    |   | 3,155 |   |
|                              |   |   |   |   |   |   |    |    |   |   |   |   |
|                              |   |   | 19,244 |   |   |   | 23,629  |    |   | 18,023 |   |
| Deferred tax provision:           |   |   |   |   |   |   |    |    |   |   |   |   |
|    Federal         |   |   | 1,760  |   |   |   | (12,189 | )       |   | (619 | )  |
|    State and local |   |   | 1,030  |   |   |   | (3,410  | )  |   | 1,340 |   |
|                              |   |   |   |   |   |   |    |    |   |   |   |   |
|                              |   |   | 2,790  |   |   |   | (15,599 | )  |   | 721 |   |
|                              |   |   |   |   |   |   |    |    |   |   |   |   |
| Total                             |   | $      | 22,034 |   |   | $      | 8,030   |    | $      | 18,744 |   |

----

Table of Contents

|                                        |   | Percent of Pretax Income |       |
|---------------------------------------------|--------|--------------------------|------------|
|                                        |   |                     |       |   |   |   |   |   |   |
|                                        |   | 2010                     |       |   | 2009 |   |   | 2008 |   |
|                                        |   |                     |       |   |   |   |   |   |   |
| Federal statutory rate                      |   |                     | 35.0       | % |   |   | 35.0 | % |   |   | 35.0 | % |
| State and local income taxes, net of        |   |                     |       |   |   |   |   |   |   |   |   |   |
|   federal income tax benefit      |   |                     | 5.7        |   |   |   | 2.0 |   |   |   | 5.8 |   |
| Tax exempt interest exclusion               |   |                     | (2.1       | ) |   |   | (4.8 | ) |   |   | (2.7 | ) |
| Dividends received exclusion                |   |                     | (0.1       | ) |   |   | (0.2 | ) |   |   | (0.1 | ) |
| Goodwill impairment (nondeductible in 2010) |   |                     | 6.3        |   |   |   | --- |   |   |   | --- |   |
| Others                                 |   |                     |  (0.4 | )  |   |   |  (0.5 | )  |   |   |  (0.6 | )  |
|                                        |   |                     |       |   |   |   |   |   |   |   |   |   |
| Total                                       |   |                     | 44.4       | % |   |   | 31.5 | % |   |   | 37.4 | % |

|                                                         |   | December 31, |    |
|--------------------------------------------------------------|--------|--------------|---------|
|                                                         |   |         |    |   |   |   |
|                                                         |   | 2010         |    |   | 2009 |   |
| Deferred tax assets:                                         |   |         |    |   |   |   |
|    Postretirement benefits liability          |   | $            | 44,828  |   |   | $ | 84,466 |   |
|    Inventories                                |   |         | 412     |   |   |   | 1,299 |   |
|    Annual leave                               |   |         | 1,980   |   |   |   | 2,064 |   |
|    Accounts receivable allowances             |   |         | 564     |   |   |   | 537 |   |
|    Medical claims                             |   |         | 728     |   |   |   | 900 |   |
|    Amortization of acquired intangible assets |   |         | 1,758   |   |   |   | 4,642 |   |
|    Others                                     |   |         | 3,454   |   |   |   | 1,578 |   |
|                                                         |   |         |    |   |   |   |   |   |
| Total deferred tax assets                                    |   |         | 53,724  |   |   |   | 95,486 |   |
|                                                         |   |         |    |   |   |   |   |   |
| Deferred tax (liabilities):                                  |   |         |    |   |   |   |   |   |
|    Capitalized software                       |   |         | (2,006  | ) |   |   | (1,497 | ) |
|    Deferred gain on real estate transactions  |   |         | (34,337 | ) |   |   | (35,080 | ) |
|    Depreciation                               |   |         | (340    | ) |   |   | (531 | ) |
|    Unrealized gain on marketable securities   |   |         | (1,126  | ) |   |   | (737 | )  |
|    Others                                     |   |         | (941    | ) |   |   | (388 | ) |
|                                                         |   |         |    |   |   |   |   |   |
| Total deferred tax (liabilities)                             |   |         | (38,750 | ) |   |   | (38,233 | ) |
|                                                         |   |         |    |   |   |   |   |   |
| Net deferred tax assets                                      |   | $            | 14,974  |   |   | $ | 57,253 |   |

----

Table of Contents

|                                                                                                                       |   | 2010   |   |   | 2009   |   |   | 2008   |   |
|----------------------------------------------------------------------------------------------------------------------------|--------|--------|--------|--------|--------|--------|--------|--------|--------|
| Unrecognized tax benefits, January 1                                                                                       |   | $      | 2,234  |   |   | $      | 2,443  |   |   | $ | 2,993 |   |
| Increases resulting from tax positions   taken during year                                                  |   |   | 294    |   |   |   | 300    |   |   |   | 482 |   |
| Decreases related to settlements with   taxing authorities                                                  |   |   | (99    | )      |   |   | (509   | )      |   |   | (1,032 | ) |
|                                                                                                                       |   |   |   |   |   |   |   |   |   |   |   |   |
| Unrecognized tax benefits, December 31                                                                                     |   | $      | 2,429  |   |   | $      | 2,234  |   |   | $ | 2,443 |   |
| Total unrecognized tax benefits that, if   recognized, would reduce the effective   tax rate |   | $      | 1,579  |   |   | $      | 1,452  |   |   | $ | 1,588 |   |
| Total interest and penalties recognized in   the Consolidated Statements of Income                          |   |   | 137    |   |   |   | 8      |   |   |   | 54 |   |
| Total interest and penalties recognized in   the Consolidated Balance Sheets                                |   |   | 771    |   |   |   | 635    |   |   |   | 627 |   |

| (8) | OTHER BALANCE SHEET INFORMATION |
|-----|---------------------------------|

|                                              |   |   |   |   |   |   |
|---------------------------------------------------|--------|--------|--------|--------|--------|--------|
|                                              |   | 2010   |   |   | 2009   |   |
| Receivables:                                      |   |   |   |   |   |   |
|    Customers                       |   | $      | 36,111 |   |   | $      | 30,950 |   |
|    Others                          |   |   | 2,391  |   |   |   | 3,210 |   |
|    Allowance for doubtful accounts |   |   | (1,676 | )      |   |   | (1,556 | ) |
|                                              |   |   |   |   |   |   |   |   |
| Total                                             |   | $      | 36,826 |   |   | $      | 32,604 |   |

----

Table of Contents

|                   | 2010   |   | 2009   |
|------------------------|--------|--------|--------|
| Inventories:           |   |   |   |   |   |
| Materials and supplies | $      | 549    |   | $ | 1,511 |
| Work in process        |   | 440    |   |   | 476 |
| Finished goods         |   | 468    |   |   | 948 |
|                   |   |   |   |   |   |
| Total                  | $      | 1,457  |   | $ | 2,935 |

|                                                                                                                                                                                                                                                                                                                                                                                                                                       |   | 2010   |    |   | 2009   |   |
|--------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|--------|--------|---------|--------|--------|--------|
|                                                                                                                                                                                                                                                                                                                                                                                                                                       |   |   |    |   |   |   |
| Property and other assets                                                                                                                                                                                                                                                                                                                                                                                                             |   |   |    |   |   |   |
| Intangible and other amortizable assets:                                                                                                                                                                                                                                                                                                                                                                                                   |   |   |    |   |   |   |
| Gross carrying amount—                                                                                                                                                                                                                                                                                                                                                                                                               |   |   |    |   |   |   |
| Software                                                                                                                                                                                                                                                                                                                                                                                                                                   |   | $      | 31,435  |   |   | $      | 26,319 |   |
| Customer lists                                                                                                                                                                                                                                                                                                                                                                                                                             |   |   | 6,150   |   |   |   | 6,182 |   |
| Copyrights                                                                                                                                                                                                                                                                                                                                                                                                                                 |   |   | 9,145   |   |   |   | 9,145 |   |
| Other amortizable assets                                                                                                                                                                                                                                                                                                                                                                                                                   |   |   | 196     |   |   |   | 214 |   |
|                                                                                                                                                                                                                                                                                                                                                                                                                                       |   |   |    |   |   |   |   |   |
|                                                                                                                                                                                                                                                                                                                                                                                                                                       |   |   | 46,926  |   |   |   | 41,860 |   |
| Accumulated amortization—                                                                                                                                                                                                                                                                                                                                                                                                            |   |   |    |   |   |   |   |   |
| Software                                                                                                                                                                                                                                                                                                                                                                                                                                   |   |   | (22,290 | )      |   |   | (21,247 | ) |
| Customer lists                                                                                                                                                                                                                                                                                                                                                                                                                             |   |   | (5,337  | )      |   |   | (5,017 | ) |
| Copyrights                                                                                                                                                                                                                                                                                                                                                                                                                                 |   |   | (9,145  | )      |   |   | (8,374 | ) |
| Other amortizable assets                                                                                                                                                                                                                                                                                                                                                                                                                   |   |   | (127    | )      |   |   | (123 | ) |
|                                                                                                                                                                                                                                                                                                                                                                                                                                       |   |   |    |   |   |   |   |   |
|                                                                         |   |   | (36,899 | )      |   |   | (34,761 | ) |
|                                                                                                                                                                                                                                                                                                                                                                                                                                       |   |   |    |   |   |   |   |   |
| Net intangible and other amortizable assets                                                                                                                                                                                                                                                                                                                                                                                                |   |   | 10,027  |   |   |   | 7,099 |   |
| Other assets                                                                                                                                                                                                                                                                                                                                                                                                                               |   |   | 2,523   |   |   |   | 4,295 |   |
|                                                                                                                                                                                                                                                                                                                                                                                                                                       |   |   |    |   |   |   |   |   |
| Total                                                                                                                                                                                                                                                                                                                                                                                                                                      |   | $      | 12,550  |   |   | $      | 11,394 |   |

----

Table of Contents

|                             |   | 2010   |    |   | 2009   |   |
|----------------------------------|--------|--------|---------|--------|--------|--------|
| Property and equipment, at cost: |   |   |    |   |   |   |
| Land                             |   | $      | 23,198  |   |   | $      | 23,642 |   |
| Buildings and improvements       |   |   | 91,013  |   |   |   | 95,939 |   |
| Furniture and equipment          |   |   | 47,714  |   |   |   | 46,734 |   |
| Accumulated depreciation         |   |   | (52,725 | )      |   |   | (51,279 | ) |
|                             |   |   |    |   |   |   |   |   |
| Total                            |   | $      | 109,200 |   |   | $      | 115,036 |   |

|                                                 | 2010   |   | 2009   |
|------------------------------------------------------|--------|--------|--------|
| Payables and accrued liabilities:                    |   |   |   |   |   |
|   Accounts payable and accrued liabilities | $      | 16,653 |   | $ | 16,906 |
|   Employee compensation and benefits       |   | 18,791 |   |   | 17,909 |
|   Postretirement benefits, current portion |   | 61     |   |   | 85 |
|   Income taxes                             |   | 3,872  |   |   | 3,706 |
|                                                 |   |   |   |   |   |
| Total                                                | $      | 39,377 |   | $ | 38,606 |

| (9) | TERM DEBT |
|-----|-----------|

|                                           |   |   |   |
|------------------------------------------------|--------|--------|--------|
|                                           | 2010   |   | 2009   |
|                                           |   |   |   |   |   |
| Notes payable, unsecured, 8.15%, due 2010      | $      | ---    |   | $ | 7,500 |
| Notes payable, unsecured, 6.99%, due 2010-2011 |   | 13,000 |   |   | 16,000 |
| Total term debt                                |   | 13,000 |   |   | 23,500 |
|   Current portion                    |   | 13,000 |   |   | 10,500 |
|                                           |   |   |   |   |   |
|   Long-term debt                     | $      | ---    |   | $ | 13,000 |

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Table of Contents

| (10) | COMMITMENTS, CONTINGENCIES, AND RELATED-PARTY TRANSACTIONS |
|------|------------------------------------------------------------|

| (11) | STOCKHOLDERS'  EQUITY (DEFICIT) |
|------|--------------------------------------|

----

Table of Contents

|                              |   | Treasury Stock Shares |       |
|-----------------------------------|--------|-----------------------|------------|
|                              |   | Class A               |       |   | Class B |   |   | Class C |   |
|                              |   |                  |       |   |   |   |   |   |   |
| Balance, January 1, 2008          |   |                  | 18,105,859 |   |   |   | 7,807,781 |   |   |   | 2,519,240 |   |
|                              |   |                  |       |   |   |   |   |   |   |   |   |   |
| Sales to employees                |   |                  | (714,011   | ) |   |   | --- |   |   |   | --- |   |
| Repurchases                       |   |                  | 682,658    |   |   |   | 1,145,694 |   |   |   | --- |   |
| Conversions of Class A to Class B |   |                  | 547,389    |   |   |   | (547,389 | ) |   |   | --- |   |
|                              |   |                  |       |   |   |   |   |   |   |   |   |   |
| Balance, December 31, 2008        |   |                  | 18,621,895 |   |   |   | 8,406,086 |   |   |   | 2,519,240 |   |
|                              |   |                  |       |   |   |   |   |   |   |   |   |   |
| Sales to employees                |   |                  | (617,280   | ) |   |   | --- |   |   |   | --- |   |
| Repurchases                       |   |                  | 607,173    |   |   |   | 1,370,216 |   |   |   | 5,990 |   |
| Conversions of Class A to Class B |   |                  | 658,253    |   |   |   | (658,253 | ) |   |   | --- |   |
|                              |   |                  |       |   |   |   |   |   |   |   |   |   |
| Balance, December 31, 2009        |   |                  | 19,270,041 |   |   |   | 9,118,049 |   |   |   | 2,525,230 |   |
|                              |   |                  |       |   |   |   |   |   |   |   |   |   |
| Sales to employees                |   |                  | (588,736   | ) |   |   | --- |   |   |   | --- |   |
| Repurchases                       |   |                  | 562,233    |   |   |   | 822,452 |   |   |   | --- |   |
| Conversions of Class A to Class B |   |                  | 668,941    |   |   |   | (668,941 | ) |   |   | --- |   |
|                              |   |                  |       |   |   |   |   |   |   |   |   |   |
| Balance, December 31, 2010        |   |                  | 19,912,479 |   |   |   | 9,271,560 |   |   |   | 2,525,230 |   |

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Table of Contents

| (12) | COMPREHENSIVE INCOME (LOSS) |
|------|-----------------------------|

|                                                                                            |   | 2010    |         |   | 2009   |    |   | 2008    |   |    |
|-------------------------------------------------------------------------------------------------|--------|---------|--------------|--------|--------|---------|--------|---------|--------|---------|
|                                                                                            |   |    |         |   |   |    |   |    |   |    |
| Net Income                                                                                      |   | $       | 27,609       |   |   | $       | 17,495 |    |   | $       | 31,441 |   |   |
| Other comprehensive income (loss):                                                              |   |    |         |   |   |    |   |    |   |    |   |   |   |
|   Holding gains (losses) on securities arising    during the year |   |    | 2,370        |   |   |    | 8,259  |    |   |    | (8,810 | )  |   |
|     Less net gain (loss) included in net income                             |   |    | 1,340        |   |   |    | 464    |    |   |    | (314 | )  |   |
|     Changes in unrealized gains (losses)                                    |   |    | 1,030        |   |   |    | 7,795  |    |   |    | (8,496 | )  |   |
|     Less income taxes                                                       |   |    | 396          |   |   |    | 2,728  |    |   |    | (2,973 | )  |   |
|       Net unrealized gains (losses)                               |   |    | 634          |   |   |    | 5,067  |    |   |    | (5,523 | )  |   |
|                                                                                            |   |    |         |   |   |    |   |    |   |    |   |   |   |
|   Currency translation (losses) gains                                                 |   |    | 9            |   |   |    | (39    | )  |   |    | 282 |   |   |
|   Less income taxes                                                                   |   |    | 3            |   |   |    | (14    | )  |   |    | 99 |   |   |
|       Net currency translation (losses) gains                     |   |    | 6            |   |   |    | (25    | )  |   |    | 183 |   |   |
|                                                                                            |   |    |         |   |   |    |   |    |   |    |   |   |   |
|   Postretirement benefit adjustment                                                   |   |    | 98,545       |   |   |    | 22,646 |    |   |    | (77,390 | )  |   |
|   Less income taxes                                                                   |   |    | 40,051       |   |   |    | 8,055  |    |   |    | (30,154 | )  |   |
|       Net postretirement benefit adjustment             |   |    | 58,494       |   |   |    | 14,591 |    |   |    | (47,236 | )  |   |
|                                                                                            |   |    |         |   |   |    |   |    |   |    |   |   |   |
| Total other comprehensive income (loss)                                                         |   |    | 59,134       |   |   |    | 19,633 |    |   |    | (52,576 | )  |   |
| Comprehensive income (loss)                                                                |   |  $ |  86,743 |   |   |  $ | 37,128 |    |   |  $ | (21,135 | )  |   |

| (13) | FAIR VALUE MEASUREMENTS |
|------|-------------------------|

|   | Level 1: | Unadjusted quoted prices in active markets that are accessible at the measurement date for identical, unrestricted assets or liabilities. |
|--------|----------|-------------------------------------------------------------------------------------------------------------------------------------------|

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Table of Contents

|   | Level 2: | Inputs, other than quoted prices, that are observable for the asset or liability, either directly or indirectly.  These include quoted prices for similar assets or liabilities in active markets and quoted prices for identical or similar assets or liabilities in markets that are not active. |
|--------|----------|--------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|   | Level 3: | Unobservable inputs that reflect the reporting entity’s own assumptions. |
|--------|----------|--------------------------------------------------------------------------------|

|                      | Balanceas of |    | Fair Value Measures at 12/31/10Using Fair Value Hierarchy |   | Fair Valueas of |
|---------------------------|--------------|---------|-----------------------------------------------------------|--------|-----------------|
|                      | 12/31/10     |    | Level 1                                                   |   | Level 2         |   | Level 3 |   | 12/31/10 |
| Cash and cash equivalents | $            | 16,464  |                                                      | $      | 16,464          |   | $ | --- |   | $ | --- |   | $ | 16,464 |
|                      |         |    |                                                      |   |            |   |   |   |   |   |   |   |   |   |
| Short-term investments    |         | 15,259  |                                                      |   | 15,259          |   |   | --- |   |   | --- |   |   | 15,259 |
| Marketable securities     |         | 99,258  |                                                      |   | 99,258          |   |   | --- |   |   | --- |   |   | 99,258 |
|                      |         |    |                                                      |   |            |   |   |   |   |   |   |   |   |   |
|    Total   | $            | 130,981 |                                                      | $      | 130,981         |   | $ | --- |   | $ | --- |   | $ | 130,981 |

|                      | Balanceas of |    | Fair Value Measures at 12/31/09Using Fair Value Hierarchy |   | Fair Valueas of |
|---------------------------|--------------|---------|-----------------------------------------------------------|--------|-----------------|
|                      | 12/31/09     |    | Level 1                                                   |   | Level 2         |   | Level 3 |   | 12/31/09 |
| Cash and cash equivalents | $            | 9,757   |                                                      | $      | 9,757           |   | $ | --- |   | $ | --- |   | $ | 9,757 |
|                      |         |    |                                                      |   |            |   |   |   |   |   |   |   |   |   |
| Short-term investments    |         | 14,445  |                                                      |   | 14,445          |   |   | --- |   |   | --- |   |   | 14,445 |
| Marketable securities     |         | 95,305  |                                                      |   | 95,305          |   |   | --- |   |   | --- |   |   | 95,305 |
|                      |         |    |                                                      |   |            |   |   |   |   |   |   |   |   |   |
|    Total   | $            | 119,507 |                                                      | $      | 119,507         |   | $ | --- |   | $ | --- |   | $ | 119,507 |

|                    | Balanceas of |   | Fair Value Measures at 12/31/10Using Fair Value Hierarchy |   | Lossesas of |
|-------------------------|--------------|--------|-----------------------------------------------------------|--------|-------------|
|                    | 12/31/10     |   | Level 1                                                   |   | Level 2     |   | Level 3 |   | 12/31/10 |
| Goodwill                | $            | ---    |                                                      | $      | ---         |   | $ | --- |   | $ | --- |   | $ | (6,634) |
|                    |         |   |                                                      |   |        |   |   |   |   |   |   |   |   |   |
|    Total | $            | ---    |                                                      | $      | ---         |   | $ | --- |   | $ | --- |   | $ | (6,634) |

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Table of Contents

|                    | Balanceas of |   | Fair Value Measures at 12/31/09Using Fair Value Hierarchy |   | Lossesas of |
|-------------------------|--------------|--------|-----------------------------------------------------------|--------|-------------|
|                    | 12/31/09     |   | Level 1                                                   |   | Level 2     |   | Level 3 |   | 12/31/09 |
| Goodwill                | $            | ---    |                                                      | $      | ---         |   | $ | --- |   | $ | --- |   | $ | (17,805) |
|                    |         |   |                                                      |   |        |   |   |   |   |   |   |   |   |   |
|    Total | $            | ---    |                                                      | $      | ---         |   | $ | --- |   | $ | --- |   | $ | (17,805) |

| (14) | SEGMENTS |
|------|----------|

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Table of Contents

| Year EndedDecember 31, 2010                                                                                                                                                                                                                                                                                                                                                                                                                                                                |   | LTR    |    |   | SB     |   |    | Printing |   |   | Software |   |   | Total  |   |
|--------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|--------|--------|---------|--------|--------|--------|---------|----------|--------|--------|----------|--------|--------|--------|--------|
|                                                                                 |   |   |    |   |   |   |    |     |   |   |     |   |   |   |   |
| Revenues from external                                                                                                                                                                                                                                                                                                                                                                                                                                                           |   | $      | 261,473 |   |   | $      | 13,582  |     |   | $      | 24,731   |   |   | $      | 31,223 |   |   | $ | 331,009 |   |
| Intersegment revenues                                                                                                                                                                                                                                                                                                                                                                                                                                                                      |   |   | ---     |   |   |   | 49      |     |   |   | 9,631    |   |   |   | 2,418  |   |   |   | 12,098 |   |
| Operating profit (loss)                                                                                                                                                                                                                                                                                                                                                                                                                                                                    |   |   | 48,244  |   |   |   | (12,038 | )        |   |   | (715     | )      |   |   | 11,151 |   |   |   | 46,642 |   |
| Equity loss of affiliated                                                                                                                                                                                                                                                                                                                                                                                                                                                        |   |   | (67     | )      |   |   | ---     |     |   |   | ---      |   |   |   | ---    |   |   |   | (67 | ) |
| Interest expense                                                                                                                                                                                                                                                                                                                                                                                                                                                                           |   |   | 1,750   |   |   |   | 2       |     |   |   | 13       |   |   |   | ---    |   |   |   | 1,765 |   |
| Identifiable assets                                                                                                                                                                                                                                                                                                                                                                                                                                                                        |   |   | 336,831 |   |   |   | 9,600   |     |   |   | 17,616   |   |   |   | 32,248 |   |   |   | 396,295 |   |
| Depreciation and  amortization                                                                                                                                                                                                                                                                                                                                                                                                                                                        |   |   | 7,924   |   |   |   | 1,026   |     |   |   | 991      |   |   |   | 12     |   |   |   | 9,953 |   |
| Goodwill impairment                                                                                                                                                                                                                                                                                                                                                                                                                                                                        |   |   | ---     |   |   |   | 6,634   |     |   |   | ---      |   |   |   | ---    |   |   |   | 6,634 |   |
| Capital expenditures                                                                                                                                                                                                                                                                                                                                                                                                                                                                       |   |   | 4,523   |   |   |   | 1       |     |   |   | 129      |   |   |   | 1      |   |   |   | 4,654 |   |

| Year EndedDecember 31, 2009                                                                                                                                                                                                                                                                                                                                                                                                                                                                |   | LTR    |    |   | SB     |   |    | Printing |   |   | Software |   |   | Total  |   |
|--------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|--------|--------|---------|--------|--------|--------|---------|----------|--------|--------|----------|--------|--------|--------|--------|
|                                                                                 |   |   |    |   |   |   |    |     |   |   |     |   |   |   |   |
| Revenues from external  customers                                                                                                                                                                                                                                                                                                                                                                                                                                                |   | $      | 255,670 |   |   | $      | 23,103  |     |   | $      | 23,437   |   |   | $      | 29,043 |   |   | $ | 331,253 |   |
| Intersegment revenues                                                                                                                                                                                                                                                                                                                                                                                                                                                                      |   |   | ---     |   |   |   | 49      |     |   |   | 10,773   |   |   |   | 2,470  |   |   |   | 13,292 |   |
| Operating profit (loss)                                                                                                                                                                                                                                                                                                                                                                                                                                                                    |   |   | 35,605  |   |   |   | (20,540 | )        |   |   | 839      |   |   |   | 7,870  |   |   |   | 23,774 |   |
| Equity loss of affiliated  company                                                                                                                                                                                                                                                                                                                                                                                                                                               |   |   | (137    | )      |   |   | ---     |     |   |   | ---      |   |   |   | ---    |   |   |   | (137 | ) |
| Interest expense                                                                                                                                                                                                                                                                                                                                                                                                                                                                           |   |   | 2,519   |   |   |   | 4       |     |   |   | 68       |   |   |   | ---    |   |   |   | 2,591 |   |
| Identifiable assets                                                                                                                                                                                                                                                                                                                                                                                                                                                                        |   |   | 361,393 |   |   |   | 24,800  |     |   |   | 18,967   |   |   |   | 38,059 |   |   |   | 443,219 |   |
| Depreciation and  amortization                                                                                                                                                                                                                                                                                                                                                                                                                                                        |   |   | 7,482   |   |   |   | 1,407   |     |   |   | 1,077    |   |   |   | 46     |   |   |   | 10,012 |   |
| Goodwill impairment                                                                                                                                                                                                                                                                                                                                                                                                                                                                        |   |   | ---     |   |   |   | 17,805  |     |   |   | ---      |   |   |   | ---    |   |   |   | 17,805 |   |
| Investment in affiliated  company                                                                                                                                                                                                                                                                                                                                                                                                                                                |   |   | 4,300   |   |   |   | ---     |     |   |   | ---      |   |   |   | ---    |   |   |   | 4,300 |   |
| Capital expenditures                                                                                                                                                                                                                                                                                                                                                                                                                                                                       |   |   | 3,049   |   |   |   | 286     |     |   |   | 269      |   |   |   | ---    |   |   |   | 3,604 |   |

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Table of Contents

| Year EndedDecember 31, 2008                                                                                                                                                                                                                                                                                                                                                                                                                                                                |   | LTR    |    |   | SB     |   |   | Printing |   |   | Software |   |   | Total  |   |
|--------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|--------|--------|---------|--------|--------|--------|--------|----------|--------|--------|----------|--------|--------|--------|--------|
|                                                                                 |   |   |    |   |   |   |   |     |   |   |     |   |   |   |   |
| Revenues from external  customers                                                                                                                                                                                                                                                                                                                                                                                                                                                |   | $      | 262,335 |   |   | $      | 28,202 |     |   | $      | 33,125   |   |   | $      | 28,549 |   |   | $ | 352,211 |   |
| Intersegment revenues                                                                                                                                                                                                                                                                                                                                                                                                                                                                      |   |   | ---     |   |   |   | ---    |     |   |   | 10,536   |   |   |   | 2,507  |   |   |   | 13,043 |   |
| Operating profit (loss)                                                                                                                                                                                                                                                                                                                                                                                                                                                                    |   |   | 39,130  |   |   |   | (517   | )        |   |   | 1,805    |   |   |   | 8,465  |   |   |   | 48,883 |   |
| Interest expense                                                                                                                                                                                                                                                                                                                                                                                                                                                                           |   |   | 3,274   |   |   |   | 52     |     |   |   | 79       |   |   |   | ---    |   |   |   | 3,405 |   |
| Identifiable assets                                                                                                                                                                                                                                                                                                                                                                                                                                                                        |   |   | 370,032 |   |   |   | 40,022 |     |   |   | 20,698   |   |   |   | 28,517 |   |   |   | 459,269 |   |
| Depreciation and  amortization                                                                                                                                                                                                                                                                                                                                                                                                                                                        |   |   | 7,396   |   |   |   | 1,402  |     |   |   | 1,101    |   |   |   | 36     |   |   |   | 9,935 |   |
| Capital expenditures                                                                                                                                                                                                                                                                                                                                                                                                                                                                       |   |   | 2,385   |   |   |   | 759    |     |   |   | 164      |   |   |   | 12     |   |   |   | 3,320 |   |

|                                           |   | 2010   |    |   | 2009   |   |    | 2008   |   |
|------------------------------------------------|--------|--------|---------|--------|--------|--------|---------|--------|--------|
| Total interest expense for reportable segments |   | $      | 1,765   |   |   | $      | 2,591   |   |   | $ | 3,405 |   |
| Elimination of intersegment interest expense   |   |   | (15     | )      |   |   | (72     | )      |   |   | (128 | ) |
|   Consolidated interest expense      |   | $      | 1,750   |   |   | $      | 2,519   |   |   | $ | 3,277 |   |
|                                           |   |   |    |   |   |   |    |   |   |   |   |   |
| Total assets for reportable segments           |   | $      | 396,295 |   |   | $      | 443,219 |   |   | $ | 459,269 |   |
| Elimination of intersegment assets             |   |   | (48,600 | )      |   |   | (55,789 | )      |   |   | (46,583 | ) |
|   Consolidated assets                |   | $      | 347,695 |   |   | $      | 387,430 |   |   | $ | 412,686 |   |

| (15) | SELECTED QUARTERLY DATA (UNAUDITED) |
|------|-------------------------------------|

|                      |   | Quarter Ended 2010 |
|---------------------------|--------|--------------------|
|                      |   |               | March 27  |   |   |   | June 19  |   |   |   |  September 11  |   |   |   |  December 31  |
|                      |   |               |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Revenues                  |   | $                  | 74,757 |   |   | $ | 73,896 |   |   | $ | 73,384 |   |   | $ | 108,972 |
| Gross Profit              |   |               | 37,073 |   |   |   | 38,590 |   |   |   | 38,218 |   |   |   | 54,754 |
| Net Income (Loss)         |   |               | 6,167 |   |   |   | 8,795 |   |   |   | 1,698 |   |   |   | 10,949 |
|                      |   |               |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Earnings (Loss) Per Share |   | $                  | .24 |   |   | $ | .34 |   |   | $ | .07 |   |   | $ | .43 |

----

Table of Contents

|               |   | Quarter Ended 2009 |
|--------------------|--------|--------------------|
|               |   |               | March 28  |   |   |   | June 20  |   |   |   |  September 12 |   |   |   |   December 31 |   |
|               |   |               |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Revenues           |   | $                  | 75,856 |   |   | $ | 75,345 |   |   | $ | 72,904 |   |   | $ | 107,148 |
| Gross Profit       |   |               | 34,889 |   |   |   | 34,562 |   |   |   | 33,049 |   |   |   | 50,883 |
| Net Income         |   |               | 5,992 |   |   |   | 6,685 |   |   |   | (5,921 | )  |   |   | 10,739 |
|               |   |               |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Earnings Per Share |   | $                  | .22 |   |   | $ | .25 |   |   | $ | (.22 | )  |   | $ | .41 |

----

Table of Contents

| Column A                                       |   | Column B   |   |   | Column C   |   |   | Column D        |       |   | Column E          |   |
|------------------------------------------------|--------|------------|--------|--------|------------|--------|--------|-----------------|------------|--------|-------------------|--------|
|                                           |   |       |   |   | Additions  |   |   |            |       |   |              |   |
|                                           |   |       |   |   |       | (1)    |   |            |       | (2)    |              |   |   |   |   |   |   |
|                                           |   |       |   |   |       |   |   |            | Charged to |   |              |   |   |   |   |   |
|                                           |   | Balance at |   |   | Charged to |   |   | Other           |       |   |              |   |   | Balance at |   |
|                                           |   | Beginning  |   |   | Costs and  |   |   | Accounts— |       |   | Deductions— |   |   | End of |   |
| Description                                    |   | of Period  |   |   | Expenses   |   |   | Describe        |       |   | Describe          |   |   | Period |   |
|                                           |   |       |   |   |       |   |   |            |       |   |              |   |   |   |   |   |   |
| VALUATION ACCOUNTS DEDUCTED                    |   |       |   |   |       |   |   |            |       |   |              |   |   |   |   |   |   |
|   FROM ASSETS TO WHICH THEY APPLY:   |   |       |   |   |       |   |   |            |       |   |              |   |   |   |   |   |   |
|                                           |   |       |   |   |       |   |   |            |       |   |              |   |   |   |   |   |   |
| Allowance for Doubtful Accounts Receivable:    |   |       |   |   |       |   |   |            |       |   |              |   |   |   |   |   |   |
|    Year ended December 31, 2010 |   | $          | 1,556  |   |       | $      | 470    |            |       | $      | (129              | )(a)   |   | $ | (221 | )(b) |   | $ | 1,676 |   |
|    Year ended December 31, 2009 |   |       | 1,723  |   |       |   | 661    |            |       |   | (154              | )(a)   |   |   | (674 | )(b) |   |   | 1,556 |   |
|    Year ended December 31, 2008 |   |       | 2,034  |   |       |   | 390    |            |       |   | (158              | )(a)   |   |   | (543 | )(b) |   |   | 1,723 |   |
|                                           |   |       |   |   |       |   |   |            |       |   |              |   |   |   |   |   |   |   |   |   |
| Allowance for Excess Inventory:                |   |       |   |   |       |   |   |            |       |   |              |   |   |   |   |   |   |   |   |   |
|    Year ended December 31, 2010 |   | $          | 586    |   |       | $      | (416   | )               |       |   |              |   |   |   |   |   |   | $ | 170 |   |
|    Year ended December 31, 2009 |   |       | 724    |   |       |   | (138   | )          |       |   |              |   |   |   |   |   |   |   | 586 |   |
|    Year ended December 31, 2008 |   |       | 680    |   |       |   | 44     |            |       |   |              |   |   |   |   |   |   |   | 724 |   |
|                                           |   |       |   |   |       |   |   |            |       |   |              |   |   |   |   |   |   |   |   |   |
| Allowance for Deferred Tax Assets:             |   |       |   |   |       |   |   |            |       |   |              |   |   |   |   |   |   |   |   |   |
|    Year ended December 31, 2010 |   | $          | ---    |   |       | $      | ---    |            |       |   |              |   |   |   |   |   |   | $ | --- |   |
|    Year ended December 31, 2009 |   |       | ---    |   |       |   | ---    |            |       |   |              |   |   |   |   |   |   |   | --- |   |
|    Year ended December 31, 2008 |   |       | 601    |   |       |   | (601   | )               |       |   |              |   |   |   |   |   |   |   | --- |   |

| (a) | Charged to deferred subscription revenue; portion of allowance for doubtful accounts receivable not included in revenues |
|-----|--------------------------------------------------------------------------------------------------------------------------|
| (b) | Net accounts written off. |
|-----|---------------------------|

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| Item 9. | Changes in and Disagreements with Accountants on Accounting and Financial Disclosures |
|---------|---------------------------------------------------------------------------------------|

N/A

| Item 9A. | Controls and Procedures |
|----------|-------------------------|

| Management's Report on Internal Control over Financial Reporting  |   |
|-----------------------------------------------------------------------------|--------|

| Item 9B. | Other Information |
|----------|-------------------|

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| Item 10. | Directors, Executive Officers and Corporate Governance |
|----------|--------------------------------------------------------|

The information 

| Name                      | Age    |   | Present position and prior experience                                  |
|---------------------------|--------|--------|------------------------------------------------------------------------|
| Cynthia J. Bolbach        | 63     |   | Executive Vice President and                                           |
|                      |   |   | Corporate Secretary                                                    |
|                      |   |   | Corporate secretary since 1995                                         |
|                      |   |   |    and executive vice president since 2009.             |
|                      |   |   | Joined BNA in 1972                                                     |
|                      |   |   |                                                                   |
| Eunice F. Lin        | 50     |   | Executive Vice President and                                           |
|                      |   |   | General Counsel                                                        |
|                      |   |   | Executive vice president since 2009                                    |
|                      |   |   | and general counsel since 1995. Joined                                 |
|                      |   |   |    BNA in 1994.                                              |
|                      |   |   |                                                                   |
| Carol A. Clark       | 54     |   | Executive Vice President and        |
|                      |   |   | Chief Information Officer                                    |
|                      |   |   | Executive vice president and chief                                     |
|                      |   |   | information officer since 2009.                                   |
|                      |   |   | Previously served as technology director.                              |
|                      |   |   |    since 1997.  Joined BNA in 1983.                     |
|                      |   |   |                                                                   |
| Robert P. Ambrosini  | 54     |   | Executive Vice President and                                      |
|                      |   |   | Chief Financial Officer                                           |
|                      |   |   | Joined BNA in 2007 as Chief financial                             |
|                      |   |   | officer; executive vice president since                                |
|                      |   |   | 2009.  Served as Senior Vice President of                         |
|                      |   |   | Finance and Accounting for the National                                |
|                      |   |   | Geographic Channel 2004 - 2006.                                        |
|                      |   |   |                                                                   |
| Gilbert S. Lavine         | 59     |   | Treasurer                                                              |
|                      |   |   | Treasurer since 1998.  Joined BNA in 1985.                        |

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Table of Contents

| Name                  | Age  |   | Present position and prior experience     |
|----------------------------|-----------|--------|------------------------------------------------|
| Gregory C. McCaffery  | 50        |   | President and Chief Operating Officer          |
|                       |      |   | President since 2007 and chief operating  |
|                       |      |   | officer since 2003.  Joined BNA in 1986   |

|              |   |   |                                           |
|-------------------|--------|--------|------------------------------------------------|
| James R. Schneble | 56     |   | Corporate Controller                           |
|              |   |   | Controller since 1990. Joined BNA in 1985.     |
|              |   |   |                                           |
| Paul N. Wojcik    | 62     |   | Chairman and Chief Executive Officer           |
|              |   |   | Chairman since 2007 and CEO since              |
|              |   |   | 1997, president 1995-2007.  Joined BNA in |
|              |   |   | 1972.                                          |

| Item 11. | Executive Compensation |
|----------|------------------------|

The information required under this Item 11 is contained in the Proxy Statement under the headings "V. Executive Compensation" and is incorporated herein by reference

| Item 12. | Security Ownership of Certain Beneficial Owners and Management and Related Stockholder Matters |
|----------|------------------------------------------------------------------------------------------------|

| Item 13. | Certain Relationships and Related Transactions, and Director Independence |
|----------|---------------------------------------------------------------------------|

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| Item 14. | Principal Accountant Fees and Services |
|----------|----------------------------------------|

The information required under this Item 14 is contained in the Proxy Statement under the heading "VI.   Audit Committee Disclosure" and is incorporated herein by reference

| Item 15. | Exhibits and Financial Statement Schedule |
|----------|-------------------------------------------|

|   | The following documents are filed as part of this report. |
|--------|-----------------------------------------------------------|

| (a)(1)                         | Financial Statements                                                          | Page   |
|--------------------------------|-------------------------------------------------------------------------------|--------|
|                           | Report of Independent Registered Public Accounting Firm                       | 24     |
|                           |                                                                          |   |
|                           | Consolidated Statements of Income for the years                               | 25     |
|                           |     ended December 31, 2010, 2009, and 2008          |   |
|                           |                                                                          |   |
|                           | Consolidated Balance Sheets as of December 31, 2010 and 2009                  | 26     |
|                           |                                                                          |   |
|                           | Consolidated Statements of Cash Flows for each of the                         |   |
|                           | years ended December 31, 2010, 2009, and 2008                                 | 28     |
|                           |                                                                          |   |
|                           | Consolidated Statements of Changes in Stockholders'                           |   |
|                           | Equity (Deficit) and Comprehensive Income (Loss) for each of the    |   |
|                           | years ended December 31, 2010, 2009, and 2008                                 | 30     |
|                           |                                                                          |   |
|                           | Notes to Consolidated Financial Statements                                    | 31     |
|                           |                                                                          |   |
| (a)(2)                         | Financial Statement Schedule:                                                 |   |
|       | II  Valuation and Qualifying Accounts and Reserves                       |   |
|                           |     for the years ended December 31, 2010, 2009, and 2008 | 54     |

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Table of Contents

| (a)(3) | Exhibits                                                                                   |
|--------|--------------------------------------------------------------------------------------------|
|   |                                                                                       |
| 3.1    | Certificate of Incorporation, as amended*                                                  |
|   |                                                                                       |
| 3.2    | Bylaws, as amended.**                                                                      |
|   |                                                                                       |
| 11     | Statement re: Computation of Per Share Earnings is contained in the 2010                   |
|   | Consolidated Financial Statements in the Notes to Consolidated  Financial Statements, |
|   |    Note 11 "Stockholders' Equity (Deficit)."                      |

| 21         | Subsidiaries of Registrant.***                                                                    |
|------------|---------------------------------------------------------------------------------------------------|
|       |                                                                                              |
| 23.1  | Consent of BDO USA, LLP,  Independent Registered Public Accounting Firm                 |
|       |                                                                                              |
| 31.1       | Certification of the Chief Executive Officer pursuant to Section 302                              |
|       | of the Sarbanes-Oxley Act of 2002, 18 U.S.C. section 1350.                                        |
|       |                                                                                              |
| 31.2       | Certification of the Chief Financial Officer pursuant to Section 302                              |
|       | of the Sarbanes-Oxley Act of 2002, 18 U.S.C. section 1350.                                        |
|       |                                                                                              |
| 32.1       | Certification of the Chief Executive Officer pursuant to Section 906                              |
|       | of the Sarbanes-Oxley Act of 2002, 18 U.S.C. section 1350.                                        |
|       |                                                                                              |
| 32.2       | Certification of the Chief Financial Officer pursuant to Section 906                              |
|       | of the Sarbanes-Oxley Act of 2002, 18 U.S.C. section 1350.                                        |
|       |                                                                                              |
| 99.1       | Proxy Statement for the Annual Meeting of security holders to be held on April 16, 2011.**** |

| *      | Incorporated by reference to the Company’s 2001 Form 10-K                                |
|--------|------------------------------------------------------------------------------------------------|
|   | Commission File Number 2-28286, filed on March 29, 2002.                                       |
|   | The exhibit number indicated above corresponds to the                                          |
|   | exhibit number in that filing.                                                                 |
|   |                                                                                           |
| **     | Incorporated by reference to the 8K filed by the Company on                                    |
|   | February 18, 2009. The exhibit number indicated above corresponds                              |
|   | to the exhibit number in that filing.                                                          |
|   |                                                                                           |
| ***    | Filed herewith.                                                                                |
|   |                                                                                           |
| ****   | Incorporated by reference to the Company’s Definitive Proxy Statement, to be filed  |
|   | with the SEC within 120 days of December 31, 2010.                                             |
|   |                                                                                           |
|   | Upon written or oral request to the Company’s General Counsel, a copy                    |
|   | of any of the above exhibits will be furnished at cost.                                        |

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SIGNA

| By:  /s/Paul N. Wojcik                                              | By:  /s/Robert P. Ambrosini                                                                      |
|--------------------------------------------------------------------------|------------------------------------------------------------------------------------------------------------|
|          Paul N. Wojcik     |          Robert P. Ambrosini,                                 |
|          Chief Executive Officer |          Executive Vice President and Chief Financial Officer |
|                                            |         (Chief Accounting Officer)                                 |
|                                                                     |                                                                                                       |
|  Date:  March 24, 2011                                         |  Date:  March 24, 2011                                                                           |

| By:  /s/Paul N. Wojcik                                                              |  March 24, 2011 |
|------------------------------------------------------------------------------------------|----------------------|
|          Paul N. Wojcik                     |  Date           |
|          Chairman of the Board of Directors |                 |
|          Director                           |                 |

|  By: /s/Paul A. Blakely                                            | March 24, 2011       |  By:  /s/George J. Korphage                                                          | March 24, 2011 |
|------------------------------------------------------------------------------|----------------------|------------------------------------------------------------------------------------------------|----------------|
|         Paul A. Blakely              | Date                 |         George J. Korphage                             | Date           |
|         Director                     |                 |         Director                                       |           |
|                                                                         |                 |                                                                                           |           |
|  By: /s/Cynthia J. Bolbach                                              | March 24, 2011       |  By:  /s/Gregory C. McCaffrey                                                        | March 24, 2011 |
|          Cynthia J. Bolbach     | Date                 |          Gregory C. McCaffrey                     | Date           |
|          Director               |                 |         Director                                       |           |
|                                                                         |                 |                                                                                           |           |
|  By: /s/Eunice F. Lin                                              | March 24, 2011       |  By:  /s/Darren P. McKewen                                                      | March 24, 2011 |
|          Eunice F. Lin     | Date                 |         Daren P. McKewen      | Date           |
|          Director               |                 |         Director                                       |           |
|                                                                         |                 |                                                                                           |           |
|  By: /s/Neil R. Froemming                                               | March 24, 2011       |  By:  /s/Jonathan Newcomb                                                            | March 24, 2011 |
|          Neil R. Froemming | Date                 |          Jonathan Newcomb                         | Date           |
|          Director               |                 |         Director                                       |           |
|                                                                         |                 |                                                                                           |           |
|  By: ________________                                                   | March  24, 2011 |  By:  _________________                                                              | March 24, 2011 |
|          Gerald S. Hobbs        | Date                 |          Ellen Taus                               | Date           |
|          Director               |                 |         Director                                       |           |
|                                                                         |                 |                                                                                           |           |
|  By: /s/David M. Victor                                                 | March  24, 2011 |  By:  /s/Daniel W. Toohey                                                       | March 24, 2011 |
|          David M. Victor        | Date                 |          Daniel W. Toohey                         | Date           |
|          Director               |                 |         Director                                       |           |

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|                     |     |   | EXHIBIT INDEX                                                                                          |            |
|--------------------------|----------|--------|--------------------------------------------------------------------------------------------------------|-----------------|
|                     |     |   |                                                                                                   |            |
|                     |     |   |                                                                                                   | Sequential Page |
| Number                   |     |   | Exhibit Description                                                                                    |  Number    |
|                     |     |   |                                                                                                   |            |
| 3                        | .1  |   | Certificate of Incorporation, as amended                                                               |  *         |
|                     |     |   |                                                                                                   |            |
| 3                        | .2       |   | Bylaws, as amended                                                                                     |  *         |
|                     |     |   |                                                                                                   |            |
| 11                       |     |   | Statement re: Computation of Per Share Earnings is contained in the 2010                               |            |
|                     |     |   |     Consolidated financial Statements in the Notes to Consolidated  Financial |            |
|      |     |   |     Statements, Note 11 "Stockholders'  Equity (Deficit)"                     | 46              |
|                     |     |   |                                                                                                   |            |
| 21221                    |     |   |                                                                                                   |            |
| 21                       |     |   | Subsidiaries of Registrant                                                                        |  62   |
|                     |     |   |                                                                                                   |            |
| 23                       | .1       |   | Consent of BDO USA, LLP, Independent Registered Public Accounting Firm                            | 63              |
|                     |     |   |                                                                                                   |            |
| 31                       | .1  |   | Certification of the Chief Executive Officer pursuant to Section 302                                   |            |
|                     |     |   |     of the Sarbanes-Oxley Act of 2002, 18 U.S.C. section 1350                      | 64              |
|                     |     |   |                                                                                                   |            |
| 31                       | .2       |   | Certification of the Chief Financial Officer pursuant to Section 302                                   |            |
|                     |     |   |    of the Sarbanes-Oxley Act of 2002, 18 U.S.C. section 1350                            | 65              |
|                     |     |   |                                                                                                   |            |
| 32                       | .1       |   | Certification of the Chief Executive Officer pursuant to Section 906                                   |            |
|                     |     |   |     of the Sarbanes-Oxley Act of 2002, 18 U.S.C. section 1350                      | 66              |
|                     |     |   |                                                                                                   |            |
| 32                       | .2       |   | Certification of the Chief Financial Officer pursuant to Section 906                                   |            |
|                     |     |   |     of the Sarbanes-Oxley Act of 2002, 18 U.S.C. section 1350                      | 67              |
|                     |     |   |                                                                                                   |            |
| 99                       | .1       |   | Proxy Statement for the Annual Meeting of Stockholders to be held on April 16, 2011               | **              |
|                     |     |   |                                                                                                   |            |
| *                   |     |   | Incorporated by reference to the Company’s 2001 Form 10-K                                        |            |
|                     |     |   | Commission File Number 2-28286, filed on March 29, 2002.                                               |            |
|                     |     |   | The exhibit number indicated above corresponds to the                                                  |            |
|                     |     |   | exhibit number in that filing.                                                                         |            |
|                     |     |   |                                                                                                   |            |
|  **                 |     |   | The Definitive Proxy Statement is expected to be filed with                                            |            |
|                     |     |   | the SEC within 120 days of December 31, 2010.                                                          |            |

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