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SECURITIES AND EXCHANGE COMMISSIONWashington, D.C. 20549



---

FORM 10-K

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

FOR THE FISCAL YEAR ENDED
JANUARY 1, 2006

Commission file number 1-6714

The Washington Post Company(Exact name of registrant as specified in its charter)

|                                                               |  |                                     
|-------------------------------------------------------------- |  | ------------------------------------
|Delaware                                                       |  | 53-0182885                          
|(State or other jurisdiction of incorporation or organization) |  | (I.R.S. Employer Identification No.)
|                                                               |  |                                     
|1150 15th St.,
N.W., Washington, D.C.                          |  | 20071                               
|(Address of principal executive offices)                       |  | (Zip Code)                          

Registrants Telephone Number, Including Area Code: (202) 334-6000

Securities Registered Pursuant to Section 12(b) of the Act:

|                                |  |                        
|------------------------------- |  | -----------------------
|                                |  | Name of each exchange  
|Title of each class             |  | on which registered    
|                                |  |                        
|Class B Common Stock, Par Value |  | New York Stock Exchange
|$1.00 Per Share                 |  |                        

Indicate by check mark if the registrant is a well-known
seasoned issuer, as defined in Rule 405 of the Securities Act.
Yes þ No o

Indicate by check mark if the registrant is not required to file
reports pursuant to Section 13 or 15(d) of the Securities
Exchange Act of 1934 (the Act).
Yes o No þ

Indicate by check mark whether the registrant (1) has filed all reports
required to be filed by Section 13 or 15(d) of the Act during the preceding 12 months (or for such shorter period
that the registrant was required to file such reports) and (2) has been subject
to such filing requirements for the past 90 days. Yes þ No o

Indicate by check mark if disclosure of delinquent filers pursuant to Item 405
of Regulation S-K is not contained herein, and will not be contained, to the
best of registrants knowledge, in definitive proxy or information statements
incorporated by reference in Part III of this Form 10-K or any amendment to
this Form 10-K. o

Indicate by check mark whether the registrant is a large
accelerated filer, an accelerated filer, or a non-accelerated
filer. See the definitions of  accelerated filer and large
accelerated filer in Rule 12b-2 of the Act. (Check
one): 
 Large accelerated
filer þ           Accelerated
filer o          Non-accelerated
filer o

Indicate by check mark whether the registrant is a shell company
(as defined in Rule 12b-2 of the Act).
Yes o No þ

Aggregate market value of the Companys voting stock held by non-affiliates on
July 1, 2005, based on the closing price for the Companys Class B Common
Stock on the New York Stock Exchange on such date: approximately
$4,700,000,000.

Shares of common stock outstanding at
February 21, 2006:

Class A Common Stock  1,722,250 shares
Class B Common Stock  7,879,881 shares

Documents partially incorporated by reference:

Definitive Proxy Statement for the
Companys 2006 Annual Meeting of Stockholders
(incorporated in Part III to the extent provided in Items 10, 11, 12,
13 and 14 hereof).



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##### 










THE WASHINGTON POST COMPANY 2005
FORM 10-K


|                                                                                                                                                        |  |                                                                                                                      |                              |  |    |    |  |  |  | 
|------------------------------------------------------------------------------------------------------------------------------------------------------- |  | -------------------------------------------------------------------------------------------------------------------- | ---------------------------- |  | -- | -- |  |  |  | 
|                                                                                                                                                        |  | Page                                                                                                                 |                             
|PART I                                                                                                                                                 
|Item 1.                                                                                                                                                 |  | Business                                                                                                             |                              |  | 1  |   
|                                                                                                                                                        |  |                                                                                                                      | Newspaper Publishing         |  |    | 1  | 
|                                                                                                                                                        |  |                                                                                                                      | Television Broadcasting      |  |    | 3  | 
|                                                                                                                                                        |  |                                                                                                                      | Magazine Publishing          |  |    | 7  | 
|                                                                                                                                                        |  |                                                                                                                      | Cable Television Operations  |  |    | 8  | 
|                                                                                                                                                        |  |                                                                                                                      | Education                    |  |    | 12 | 
|                                                                                                                                                        |  |                                                                                                                      | Other Activities             |  |    | 16 | 
|                                                                                                                                                        |  |                                                                                                                      | Production and Raw Materials |  |    | 16 | 
|                                                                                                                                                        |  |                                                                                                                      | Competition                  |  |    | 17 | 
|                                                                                                                                                        |  |                                                                                                                      | Executive Officers           |  |    | 20 | 
|                                                                                                                                                        |  |                                                                                                                      | Employees                    |  |    | 20 | 
|                                                                                                                                                        |  |                                                                                                                      | Forward-Looking Statements   |  |    | 21 | 
|                                                                                                                                                        |  |                                                                                                                      | Available Information        |  |    | 21 | 
|Item 1A.                                                                                                                                                |  | Risk Factors                                                                                                         |                              |  | 21 |   
|Item 1B.                                                                                                                                                |  | Unresolved Staff Comments                                                                                            |                              |  | 23 |   
|Item 2.                                                                                                                                                 |  | Properties                                                                                                           |                              |  | 23 |   
|Item 3.                                                                                                                                                 |  | Legal Proceedings                                                                                                    |                              |  | 24 |   
|Item 4.                                                                                                                                                 |  | Submission of Matters to a Vote of Security Holders                                                                  |                              |  | 25 |   
|                                                                                                                                                       
|PART II                                                                                                                                                
|Item 5.                                                                                                                                                 |  | Market for the Registrants Common Equity, Related
    Stockholder Matters and Issuer Purchases of Equity Securities |                              |  | 25 |   
|Item 6.                                                                                                                                                 |  | Selected Financial Data                                                                                              |                              |  | 25 |   
|Item 7.                                                                                                                                                 |  | Managements Discussion and Analysis of Financial Condition
    and Results of Operation                             |                              |  | 25 |   
|Item 7A.                                                                                                                                                |  | Quantitative and Qualitative Disclosures About Market Risk                                                           |                              |  | 25 |   
|Item 8.                                                                                                                                                 |  | Financial Statements and Supplementary Data                                                                          |                              |  | 26 |   
|Item 9.                                                                                                                                                 |  | Changes in and Disagreements With Accountants on Accounting and
    Financial Disclosure                             |                              |  | 26 |   
|Item 9A.                                                                                                                                                |  | Controls and Procedures                                                                                              |                              |  | 26 |   
|Item 9B                                                                                                                                                 |  | Other Information                                                                                                    |                              |  | 27 |   
|                                                                                                                                                       
|PART III                                                                                                                                               
|Item 10.                                                                                                                                                |  | Directors and Executive Officers of the Registrant                                                                   |                              |  | 27 |   
|Item 11.                                                                                                                                                |  | Executive Compensation                                                                                               |                              |  | 27 |   
|Item 12.                                                                                                                                                |  | Security Ownership of Certain Beneficial Owners and Management
    and Related Stockholder Matters                   |                              |  | 28 |   
|Item 13.                                                                                                                                                |  | Certain Relationships and Related Transactions                                                                       |                              |  | 28 |   
|Item 14.                                                                                                                                                |  | Principal Accountant Fees and Services                                                                               |                              |  | 28 |   
|                                                                                                                                                       
|PART IV                                                                                                                                                
|Item 15.                                                                                                                                                |  | Exhibits and Financial Statement Schedules                                                                           |                              |  | 28 |   
|                                                                                                                                                       
|SIGNATURES                                                                                                                                              |  |                                                                                                                      | 29                           | 
|                                                                                                                                                       
|INDEX TO FINANCIAL INFORMATION                                                                                                                          |  |                                                                                                                      | 30                           | 
|Managements Discussion and Analysis of Results
    of Operations and Financial Condition (Unaudited)                                                   |  |                                                                                                                      | 31                           | 
|Financial Statements and Schedules:                                                                                                                     |  |                                                                                                                      |                              | 
|Report of Independent Registered Public
    Accounting Firm                                                                                             |  |                                                                                                                      | 42                           | 
|Consolidated Statements of Income and
    Consolidated Statements of Comprehensive Income for the Three
    Fiscal Years      Ended
    January 1, 2006 |  |                                                                                                                      | 43                           | 
|Consolidated Balance Sheets at
    January 1, 2006 and January 2, 2005                                                                                  |  |                                                                                                                      | 44                           | 
|Consolidated Statements of Cash Flows
    for the Three Fiscal Years Ended January 1, 2006                                                              |  |                                                                                                                      | 46                           | 
|Consolidated Statements of Changes in
    Common Shareholders Equity for the Three Fiscal Years
    Ended January 1, 2006                              |  |                                                                                                                      | 47                           | 
|Notes to Consolidated Financial
    Statements                                                                                                          |  |                                                                                                                      | 48                           | 
|Financial Statement Schedule for the
    Three Fiscal Years Ended January 1, 2006:                                                                      |  |                                                                                                                      |                              | 
|II  Valuation and
    Qualifying Accounts                                                                                                              |  |                                                                                                                      | 65                           | 
|Ten-Year Summary of Selected Historical
    Financial Data (Unaudited)                                                                                  |  |                                                                                                                      | 66                           | 
|                                                                                                                                                       
|INDEX TO EXHIBITS                                                                                                                                       |  |                                                                                                                      | 69                           | 
|Exhibit 11                                                                                                                                             
|Exhibit 21                                                                                                                                             
|Exhibit 23                                                                                                                                             
|Exhibit 24                                                                                                                                             
|Exhibit 31.1                                                                                                                                           
|Exhibit 31.2                                                                                                                                           
|Exhibit 32.1                                                                                                                                           
|Exhibit 32.2                                                                                                                                           





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PART I





Item 1. Business.


The Washington
Post Newsweek


10-K.


Newsweek





Newspaper Publishing


The Washington Post


The Washington Post,


The Post 12-month The Post 12-month six-month


|     |  |                          |         |  |        |  |           | 
|---- |  | ------------------------ | ------- |  | ------ |  | --------- | 
|     |  | Average Paid Circulation |        
|     |  |                          |        
|     |  | Daily                    |         |  | Sunday | 
|     |  |                          |        
|2001 |  |                          | 771,614 |  |        |  | 1,066,723 | 
|2002 |  |                          | 767,843 |  |        |  | 1,058,458 | 
|2003 |  |                          | 749,323 |  |        |  | 1,035,204 | 
|2004 |  |                          | 729,068 |  |        |  | 1,016,163 | 
|2005 |  |                          | 706,135 |  |        |  | 983,243   | 

four-week




The Post


|                            |                 |      |       |       |      |  |       |       |  |  |       |       |  |      |       |       |  |  |       |       | 
|--------------------------- | --------------- | ---- | ----- | ----- | ---- |  | ----- | ----- |  |  | ----- | ----- |  | ---- | ----- | ----- |  |  | ----- | ----- | 
|                            |                 | 2001 |       |       | 2002 |  |       | 2003  |  |  | 2004  |       |  | 2005 |      
|                            |                 |      |      
|Total Inches (in thousands) |                 |      | 2,714 |       |      |  | 2,657 |       |  |  | 2,675 |       |  |      | 2,726 |       |  |  | 2,661 |      
|                            | Full-Run Inches |      |       | 2,296 |      |  |       | 2,180 |  |  |       | 2,121 |  |      |       | 2,120 |  |  |       | 1,941 | 
|                            | Part-Run Inches |      |       | 418   |      |  |       | 477   |  |  |       | 554   |  |      |       | 606   |  |  |       | 720   | 
|Preprints (in millions)     |                 |      | 1,556 |       |      |  | 1,656 |       |  |  | 1,835 |       |  |      | 1,887 |       |  |  | 1,833 |      









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The Washington Post National
Weekly Edition, The Washington Post National Weekly Edition


The Post The Post


Express, Express Express full-time Express


Washingtonpost.Newsweek Interactive


The Washington Post The Posts e-mail


Newsweek Newsweek Budget Travel Arthur Frommers Budget Travel


Slate, Slate




Newsweek The Washington Post.


Community Newspaper Division of Post-Newsweek Media


The Gazette Newspapers, Southern Maryland Newspapers,










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The Gazette Newspapers


The Gazette Newspapers Southern Maryland
Newspapers




The Herald


The
Herald The Herald The
Enterprise Newspapers


The Herald The Enterprise
Newspapers 12-month


The Herald The Enterprise Newspapers


Greater Washington Publishing


The Washington
Post Apartment Showcase, New Homes
Guide,


El Tiempo Latino


El Tiempo Latino, El Tiempo Latino





Television Broadcasting








|         |       |   |             |             | 
|-------- | ----- | - | ----------- | ----------- | 
|National |       | $ | 101,055,000 |            
|Local    |       |   | 212,379,000 |            
|Network  |       |   | 13,810,000  |            
|         |       |   |            
|         | Total |   | $           | 327,244,000 | 
|         |       |   |            









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|                     |  |            |      |  |             |  |            |             |  |         |                              |     |        |           |          |  |           |  |        |  |  |  |        | 
|-------------------- |  | ---------- | ---- |  | ----------- |  | ---------- | ----------- |  | ------- | ---------------------------- | --- | ------ | --------- | -------- |  | --------- |  | ------ |  |  |  | ------ | 
|Station Location and |  |            |      |  |             |  |            | Expiration  |  |         | Total Commercial Stations in |    
|Year Commercial      |  | National   |      |  |             |  | Expiration |             |  | Date of |                              |     | DMA(b) |          
|Operation            |  | Market     |      |  | Network     |  |            | Date of FCC |  |         | Network                      |     |        |           |         
|Commenced            |  | Ranking(a) |      |  | Affiliation |  |            | License     |  |         | Agreement                    |     |        | Allocated |          |  | Operating | 
|                     | 
|KPRC                 |  |            | 10th |  |             |  | NBC        |             |  |         | Aug. 1,                      |     |        |           | Dec. 31, |  |           |  | VHF-3  |  |  |  | VHF-3  | 
|Houston, Tx          |  |            |      |  |             |  |            |             |  |         | 2006                         |     |        |           | 2011     |  |           |  | UHF-11 |  |  |  | UHF-11 | 
|1949                 |  |            |      |  |             |  |            |             |  |         |                              |     |        |           |          |  |           |  |        |  |  |  |        | 
|                    
|WDIV                 |  |            | 11th |  |             |  | NBC        |             |  |         | Oct. 1,                      |     |        |           | Dec. 31, |  |           |  | VHF-4  |  |  |  | VHF-4  | 
|Detroit, Mich        |  |            |      |  |             |  |            |             |  |         | 2005(c)                      |     |        |           | 2011     |  |           |  | UHF-6  |  |  |  | UHF-5  | 
|1947                 |  |            |      |  |             |  |            |             |  |         |                              |     |        |           |          |  |           |  |        |  |  |  |        | 
|                    
|WPLG                 |  |            | 17th |  |             |  | ABC        |             |  |         | Feb. 1,                      |     |        |           | Dec. 31, |  |           |  | VHF-5  |  |  |  | VHF-5  | 
|Miami, Fla           |  |            |      |  |             |  |            |             |  |         | 2005                         | (c) |        |           | 2009     |  |           |  | UHF-8  |  |  |  | UHF-8  | 
|1961                 |  |            |      |  |             |  |            |             |  |         |                              |     |        |           |          |  |           |  |        |  |  |  |        | 
|                    
|WKMG                 |  |            | 20th |  |             |  | CBS        |             |  |         | Feb. 1,                      |     |        |           | Apr. 6,  |  |           |  | VHF-3  |  |  |  | VHF-3  | 
|Orlando, Fla         |  |            |      |  |             |  |            |             |  |         | 2013                         |     |        |           | 2015     |  |           |  | UHF-10 |  |  |  | UHF-9  | 
|1954                 |  |            |      |  |             |  |            |             |  |         |                              |     |        |           |          |  |           |  |        |  |  |  |        | 
|                    
|KSAT                 |  |            | 37th |  |             |  | ABC        |             |  |         | Aug. 1,                      |     |        |           | Dec. 31, |  |           |  | VHF-4  |  |  |  | VHF-4  | 
|San Antonio, Tx      |  |            |      |  |             |  |            |             |  |         | 2006                         |     |        |           | 2009     |  |           |  | UHF-6  |  |  |  | UHF-6  | 
|1957                 |  |            |      |  |             |  |            |             |  |         |                              |     |        |           |          |  |           |  |        |  |  |  |        | 
|                    
|WJXT                 |  |            | 52nd |  |             |  | None       |             |  |         | Feb. 1,                      |     |        |           |         |  |           |  | VHF-2  |  |  |  | VHF-2  | 
|Jacksonville, Fla    |  |            |      |  |             |  |            |             |  |         | 2013                         |     |        |           |          |  |           |  | UHF-6  |  |  |  | UHF-5  | 
|1947                 |  |            |      |  |             |  |            |             |  |         |                              |     |        |           |          |  |           |  |        |  |  |  |        | 






|    |                                                                                                                                                                                                                                                                                                                                                                                                                                                            
|--- | -----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------
|(a) | Source: 2005/2006 DMA Market Rankings, Nielsen Media Research,
    Fall 2005, based on television homes in DMA (see note
    (b) below).                                                                                                                                                                                                                                                                                                                   
|   
|(b) | Designated Market Area (DMA) is a market designation
    of A.C. Nielsen which defines each television market exclusive
    of another, based on measured viewing patterns. References to
    stations that are operating in each market are to stations that
    are broadcasting analog signals. However most of the stations in
    these markets are also engaged in digital broadcasting using the
    FCC-assigned channels
    for DTV operations.
|   
|(c) | The Company has filed timely applications to renew the FCC
    licenses of WDIV and WPLG, and such filings extend the
    effectiveness of each stations existing license until the
    renewal application is acted upon.                                                                                                                                                                                                                                

Regulation of Broadcasting and Related Matters
















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low-power low-power low-power low-power low-power


all-digital
















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three-year


DTV-only set-top




non-commercial co-owned co-owned two-station


co-ownership














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Magazine Publishing


Newsweek


Newsweek Newsweek


Newsweek Newsweek Newsweek, Time U.S. News & World Report Newsweek


Newsweek one-year Newsweek


Newsweek Newsweek Newsweek


Newsweek Newsweek


Newsweek The Bulletin, Newsweek, Newsweek
Nihon Ban, Newsweek Hankuk Pan, Newsweek, Newsweek en Español, Newsweek Newsweek Bil
Logha Al-Arabia, Newsweek, Newsweek Polska, Russky Newsweek, Newsweek Newsweek
Select, Newsweek The Bulletin Newsweek


Newsweek, Newsweek co-branded










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Arthur Frommers Budget Travel Budget Travel


PostNewsweek Tech Media




Government
Computer News, Washington Technology, Government Leader, Government Computer News, Washington
Technology Government Leader Defense
Systems, e-mail


FOSE





Cable Television Operations


over-the






Regulation of Cable Television and Related Matters














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over-the cost-of




















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over-the


fiber-to video-on










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over-the
















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non-recurring









Education




Pre-College










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co-publisher K12, graduate and
English-as




in-house per-course


pre-K


U.K.-based year-end


year-end year-end year-end










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year-end


year-end




pre-university,


F-1 F-1 F-1 F-1


Title IV Federal Student Financial Aid Programs




non-repayable














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for-profit
























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Other Activities


Bowater Mersey Paper Company




BrassRing







Production and Raw Materials


The Washington Post, Express El Tiempo Latino The Herald The Enterprise Newspapers The Gazette Newspapers Southern
Maryland Newspapers El Tiempo Latino


Newsweek Newsweek The
Bulletin Newsweek Time. Budget Travel Newsweek


The Washington Post Express


The
Washington Post









|  |                                                                                                                                                                                                
|- | -----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------
|* | All references in this report to newsprint tonnage and prices
    refer to short tons (2,000 pounds) and not to metric tons
    (2,204.6 pounds), which are often used in newsprint quotations.









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Newsweek


Newsweek Budget Travel The Washington Post





Competition


The Washington Post The Washington Times, The Post Express


Slate


The Herald Seattle Times Seattle Post-Intelligencer, The Enterprise Newspapers Seattle Times The Journal
Newspapers,










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The
Heralds The Enterprise Newspapers


The Gazette Newspapers The Gazette Newspapers The Potomac Bethesda/ Chevy Chase Almanacs, The Western Montgomery
Bulletin, The Bowie Blade-News, The West County News The Laurel Leader, The Montgomery Sentinel, The Prince
Georges Sentinel, The Frederick News-Post Carroll
County Times, Southern Maryland Newspapers Calvert County Independent St. Marys Today,


The Montgomery, Prince Georges Northern
Virginia Journals, The
Journal The Washington Examiner, The Washington Examiner The Washington Examiner The Gazette Newspapers, Express The Washington Post. The Baltimore
Examiner.




El Tiempo Latino


out-of










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Newsweek














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Executive Officers




The
Washington Post




Newsweek




The Washington Post, The Post





Employees






















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Forward-Looking Statements


10-K 10-K,





Available Information


www.washpostco.com. 10-K, 10-Q, 8-K 10-K





Item 1A. Risk Factors.


10-K




|  |                                                                                                                                                                                       
|- | --------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------
| | Changes in Prevailing Economic Conditions, Particularly in the
    Specific Geographic Markets Served by the Companys
    Newspaper Publishing and Television Broadcasting Businesses





|  |                                                                                                  
|- | -------------------------------------------------------------------------------------------------
| | Actions of Competitors, Including Price Changes and the
    Introduction of Competitive Offerings











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|  |                                           
|- | ------------------------------------------
| | Changing Preferences of Readers or Viewers





|  |                                                                                                                     
|- | --------------------------------------------------------------------------------------------------------------------
| | Changing Perceptions About the Effectiveness of Publishing and
    Television Broadcasting in Delivering Advertising





|  |                                                                                             
|- | --------------------------------------------------------------------------------------------
| | Technological Innovations in News, Information or Video
    Programming Distribution Systems





|  |                                                                                                                                                        
|- | -------------------------------------------------------------------------------------------------------------------------------------------------------
| | Changes in the Nature and Extent of Government Regulations,
    Particularly in the Case of Television Broadcasting and Cable
    Television Operations





|  |                                                                                 
|- | --------------------------------------------------------------------------------
| | Changes in the Cost or Availability of Raw Materials,
    Particularly Newsprint





|  |                                                                                                                         
|- | ------------------------------------------------------------------------------------------------------------------------
| | Changes in the Extent to Which Standardized Tests Are Used in
    the Admissions Process by Colleges or Graduate Schools





|  |                                                                                                                                        
|- | ---------------------------------------------------------------------------------------------------------------------------------------
| | Changes in the Extent to Which Licensing and Proficiency
    Examinations Are Used to Qualify Individuals to Pursue Certain
    Careers





|  |                                                                                                                                                  
|- | -------------------------------------------------------------------------------------------------------------------------------------------------
| | Reductions in the Amount of Funds Available Under the Federal
    Title IV Programs to Students in Kaplans Higher
    Education Division Schools











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Item 1B. Unresolved Staff Comments.







Item 2. Properties.


The Washington Post The Post The Post


17-acre




The
Gazette Newspapers Southern Maryland Newspapers. The Gazette Newspapers Southern Maryland Newspapers




15-year Budget Travel




26,000-square 2,300-square 15,000-square 39,000-square 19,000-square 25,000-square 131,000-square 18,000-square










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25,000-square 45,000-square 35,000-square 5,000-square 97,000-square 97,000-square 169,000-square 291,000-square


The Washington
Post


Slate







Item 3. Legal Proceedings.












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Item 4. Submission of Matters to a Vote of Security
Holders.







PART II





Item 5. Market for the Registrants Common
Equity, Related Stockholder Matters and Issuer  Purchases
of Equity Securities.






|                   |  |      |      |  |      |  |      |      |  |  |      |  |  |  |      | 
|------------------ |  | ---- | ---- |  | ---- |  | ---- | ---- |  |  | ---- |  |  |  | ---- | 
|                   |  | 2005 |      |  | 2004 | 
|                   |  |      |      |  |      | 
|Quarter            |  | High |      |  | Low  |  |      | High |  |  | Low  | 
|                   | 
|January  March    |  |      | $963 |  |      |  | $880 |      |  |  | $921 |  |  |  | $790 | 
|April  June       |  |      | 900  |  |      |  | 814  |      |  |  | 983  |  |  |  | 886  | 
|July  September   |  |      | 900  |  |      |  | 787  |      |  |  | 956  |  |  |  | 830  | 
|October  December |  |      | 806  |  |      |  | 717  |      |  |  | 999  |  |  |  | 862  | 










Item 6. Selected Financial Data.


10-K 10-K).





Item 7. Managements Discussion and Analysis
of Financial Condition and Results of  Operations.


10-K





Item 7A. Quantitative and Qualitative Disclosures About
Market Risk.




Equity Price Risk






|                                  |             |  |                                   |   |             |      |  |   |             |  |  |      |             |  |      |   |             |  |  |   |             | 
|--------------------------------- | ----------- |  | --------------------------------- | - | ----------- | ---- |  | - | ----------- |  |  | ---- | ----------- |  | ---- | - | ----------- |  |  | - | ----------- | 
|Value of Common Stock Investments |             |  | Value of Common Stock Investments |  
|Assuming Indicated Decrease in    |             |  | Assuming Indicated Increase in    |  
|Each Stocks Price                |             |  | Each Stocks Price                |  
|                                  |            
|-30%                              |             |  | -20%                              |   |             | -10% |  |   | +10%        |  |  | +20% |             |  | +30% |  
|                                  |             |  |                                   |   |             |      |  |   |             |  |  |      |             |  |      |  
|$                                 | 230,945,000 |  |                                   | $ | 263,937,000 |      |  | $ | 296,929,000 |  |  | $    | 362,913,000 |  |      | $ | 395,905,000 |  |  | $ | 428,897,000 | 









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Interest Rate Risk






Foreign Exchange Rate Risk







Item 8. Financial Statements and Supplementary Data.


10-K





Item 9. Changes in and Disagreements With Accountants on
Accounting and Financial Disclosure.







Item 9A. Controls and Procedures.


Disclosure Controls and Procedures












---



##### Table of Contents



13a-15(e) 15d-15(e)),


Managements Report on Internal Control over Financial
Reporting


13a-15(f) 15d-15(f)).




Changes in Internal Control Over Financial Reporting







Item 9B. Other Information.







PART III





Item 10. Directors and Executive Officers of the
Registrant.




S-K www.washpostco.com, 8-K


10-K,





Item 11. Executive Compensation.












---



##### Table of Contents










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






Item 13. Certain Relationships and Related
Transactions.







Item 14. Principal Accountant Fees and Services.







PART IV





Item 15. Exhibits and Financial Statement
Schedules.






| |                        
| | -----------------------
| | 1. Financial Statements



| |                                                                       
| | ----------------------------------------------------------------------
| | As listed in the index to financial information on page 30
    hereof.



| |                                 
| | --------------------------------
| | 2. Financial Statement Schedules



| |                                                                       
| | ----------------------------------------------------------------------
| | As listed in the index to financial information on page 30
    hereof.



| |            
| | -----------
| | 3. Exhibits



| |                                                      
| | -----------------------------------------------------
| | As listed in the index to exhibits on page 69 hereof.









---



##### Table of Contents






SIGNATURES


Pursuant to the requirements of Section 13 or 15(d) of
the Securities Exchange Act of 1934, the Registrant has duly
caused this report to be signed on its behalf by the
undersigned, thereunto duly authorized, on March 3,
2006.




| |                            
| | ---------------------------
| | THE WASHINGTON POST COMPANY
| | (Registrant)               



| |    |                       
| | -- | ----------------------
| | By | /s/ John B. Morse, Jr.

| |  |                       
| |  | ----------------------
| | 
| |  | John B. Morse, Jr.    
| |  | Vice PresidentFinance

Pursuant to the requirements of the Securities Exchange Act
of 1934, this report has been signed below by the following
persons on behalf of the Registrant and in the capacities
indicated on March 3, 2006:


|                         |  |                                                                                                  |  | 
|------------------------ |  | ------------------------------------------------------------------------------------------------ |  | 
|                        
|Donald E. Graham         |  | Chairman of the Board and Chief Executive Officer (Principal
    Executive Officer) and Director |  | 
|                        
|John B. Morse, Jr.       |  | Vice PresidentFinance (Principal Financial and Accounting
    Officer)                          |  | 
|                        
|Warren E. Buffett        |  | Director                                                                                         |  | 
|                        
|Christopher C. Davis     |  | Director                                                                                         |  | 
|                        
|Barry Diller             |  | Director                                                                                         |  | 
|                        
|John L. Dotson Jr.       |  | Director                                                                                         |  | 
|                        
|Melinda French Gates     |  | Director                                                                                         |  | 
|                        
|George J. Gillespie, III |  | Director                                                                                         |  | 
|                        
|Ronald L. Olson          |  | Director                                                                                         |  | 
|                        
|Alice M. Rivlin          |  | Director                                                                                         |  | 
|                        
|Richard D. Simmons       |  | Director                                                                                         |  | 
|                        
|George W. Wilson         |  | Director                                                                                         |  | 



| |    |                       
| | -- | ----------------------
| | By | /s/ John B. Morse, Jr.

| |  |                   
| |  | ------------------
| | 
| |  | John B. Morse, Jr.
| |  | Attorney-in-Fact  











---



##### 













INDEX TO FINANCIAL INFORMATION





THE WASHINGTON POST COMPANY


|                                                                                                      |                                                                                                                                                |                                            |    |    |    | 
|----------------------------------------------------------------------------------------------------- | ---------------------------------------------------------------------------------------------------------------------------------------------- | ------------------------------------------ | -- | -- | -- | 
|                                                                                                      |                                                                                                                                                | Page                                       |   
|                                                                                                      |                                                                                                                                                |                                            |   
|Managements Discussion and Analysis
    of Results of Operations and Financial Condition (Unaudited) |                                                                                                                                                |                                            | 31 |   
|                                                                                                     
|Financial Statements and Schedules:                                                                   |                                                                                                                                                |                                            |    |   
|                                                                                                     
|                                                                                                      | Report of Independent Registered Public
    Accounting Firm                                                                                    |                                            |    | 42 |   
|                                                                                                     
|                                                                                                      | Consolidated Statements of Income and
    Consolidated Statements of Comprehensive Income for the Three
    Fiscal Years Ended January 1, 2006 |                                            |    | 43 |   
|                                                                                                     
|                                                                                                      | Consolidated Balance Sheets at
    January 1, 2006 and January 2, 2005                                                                         |                                            |    | 44 |   
|                                                                                                     
|                                                                                                      | Consolidated Statements of Cash Flows for
    the Three Fiscal Years Ended January 1, 2006                                                     |                                            |    | 46 |   
|                                                                                                     
|                                                                                                      | Consolidated Statements of Changes in
    Common Shareholders Equity for the Three Fiscal Years
    Ended
    January 1, 2006                 |                                            |    | 47 |   
|                                                                                                     
|                                                                                                      | Notes to Consolidated Financial
    Statements                                                                                                 |                                            |    | 48 |   
|                                                                                                     
|                                                                                                      | Financial Statement Schedule for the Three Fiscal Years Ended
    January 1, 2006:                                                             |                                            |    |    |   
|                                                                                                     
|                                                                                                      |                                                                                                                                                | II  Valuation and Qualifying
    Accounts |    |    | 65 | 
|                                                                                                     
|Ten-Year Summary of Selected Historical
    Financial Data (Unaudited)                                |                                                                                                                                                |                                            | 66 |   
















---



##### Table of Contents






MANAGEMENTS DISCUSSION AND ANALYSIS OF RESULTS OF
OPERATIONS AND FINANCIAL CONDITION




OVERVIEW














RESULTS OF OPERATIONS  2005 COMPARED TO 2004












---



##### Table of Contents





30-day










DIVISION RESULTS


Newspaper Publishing Division.








Television Broadcasting Division.










---



##### Table of Contents







Magazine Publishing Division.




Cable Television Division. 30-day pre-hurricane


clean-up, 30-day pre-hurricane








|                           |       |      |      |       |      |   |      |      | 
|-------------------------- | ----- | ---- | ---- | ----- | ---- | - | ---- | ---- | 
|                           |       | 2005 |      |       | 2004 |  
|                           |      
|Customer premise equipment |       | $    | 30.0 |       |      | $ | 23.5 |     
|Commercial                 |       |      | 0.2  |       |      |   | 0.1  |     
|Scaleable infrastructure   |       |      | 8.1  |       |      |   | 8.6  |     
|Line extensions            |       |      | 14.6 |       |      |   | 14.0 |     
|Upgrade/rebuild            |       |      | 13.1 |       |      |   | 15.6 |     
|Support capital            |       |      | 45.3 |       |      |   | 17.1 |     
|                           |       |     
|                           | Total |      | $    | 111.3 |      |   | $    | 78.9 | 
|                           |       |     

Education Division.










---



##### Table of Contents





|                        |                           |      |           |         |      |   |           |          |   |  |    |     |  
|----------------------- | ------------------------- | ---- | --------- | ------- | ---- | - | --------- | -------- | - |  | -- | --- | -
|                        |                           | 2005 |           |         | 2004 |   |           | % Change |  
|                        |                          
|Revenue                 |                           |      |           |         |      |   |           |          |   |  |    |    
|                        | Supplemental education    |      | $         | 690,815 |      |   | $         | 575,014  |   |  |    | 20  |  
|                        | Higher education          |      |           | 721,579 |      |   |           | 559,877  |   |  |    | 29  |  
|                        |                           |     
|                       
|                        |                           | $    | 1,412,394 |         |      | $ | 1,134,891 |          |   |  | 24 |    
|                        |                           |     
|Operating income (loss) |                           |      |           |         |      |   |           |          |   |  |    |    
|                        | Supplemental education    |      | $         | 117,075 |      |   | $         | 100,795  |   |  |    | 16  |  
|                        | Higher education          |      |           | 82,660  |      |   |           | 93,402   |   |  |    | (12 | )
|                        | Kaplan corporate overhead |      |           | (33,305 | )    |   |           | (31,533  | ) |  |    | (6  | )
|                        | Other                     |      |           | (8,595  | )    |   |           | (41,209  | ) |  |    | 79  |  
|                        |                           |     
|                       
|                        |                           | $    | 157,835   |         |      | $ | 121,455   |          |   |  | 30 |    
|                        |                           |     



year-to






Equity in Losses of Affiliates.


Non-Operating Items. non-operating non-operating pre-tax non-operating non-operating non-operating


non-operating


|                                                            |       |      |      |     |      |   |      |     | 
|----------------------------------------------------------- | ----- | ---- | ---- | --- | ---- | - | ---- | --- | 
|                                                            |       | 2005 |      |     | 2004 |  
|                                                            |      
|Gain on sales of marketable securities                      |       | $    | 12.7 |     |      | $ |     |    
|Gain on sales of non-operating land                         |       |      | 5.1  |     |      |   |     |    
|Foreign currency (losses) gains, net                        |       |      | (8.1 | )   |      |   | 5.5  |    
|Impairment write-downs on cost method and other investments |       |      | (1.5 | )   |      |   | (0.7 | )  
|Gain on exchange of cable system business                   |       |      |     |     |      |   | 0.5  |    
|Other gains                                                 |       |      | 0.8  |     |      |   | 2.8  |    
|                                                            |       |     
|                                                            | Total |      | $    | 9.0 |      |   | $    | 8.1 | 
|                                                            |       |     



Income Taxes.










---



##### Table of Contents





RESULTS OF OPERATIONS  2004 COMPARED TO
2003


non-operating (after-tax










DIVISION RESULTS


Newspaper Publishing Division.








Television Broadcasting Division.










---



##### Table of Contents









Magazine Publishing Division.






Cable Television Division.










|                           |       |      |      |      |      |   |      |      | 
|-------------------------- | ----- | ---- | ---- | ---- | ---- | - | ---- | ---- | 
|                           |       | 2004 |      |      | 2003 |  
|                           |      
|Customer premise equipment |       | $    | 23.5 |      |      | $ | 17.0 |     
|Commercial                 |       |      | 0.1  |      |      |   | 0.1  |     
|Scaleable infrastructure   |       |      | 8.6  |      |      |   | 5.3  |     
|Line extensions            |       |      | 14.0 |      |      |   | 10.6 |     
|Upgrade/rebuild            |       |      | 15.6 |      |      |   | 21.4 |     
|Support capital            |       |      | 17.1 |      |      |   | 11.5 |     
|                           |       |     
|                           | Total |      | $    | 78.9 |      |   | $    | 65.9 | 
|                           |       |     

Education Division.


|                        |                           |      |           |         |      |   |         |          |   |  |    |    | 
|----------------------- | ------------------------- | ---- | --------- | ------- | ---- | - | ------- | -------- | - |  | -- | -- | 
|                        |                           | 2004 |           |         | 2003 |   |         | % Change |  
|                        |                          
|Revenue                 |                           |      |           |         |      |   |         |          |   |  |    |   
|                        | Supplemental education    |      | $         | 575,014 |      |   | $       | 469,757  |   |  |    | 22 | 
|                        | Higher education          |      |           | 559,877 |      |   |         | 368,320  |   |  |    | 52 | 
|                        |                           |     
|                       
|                        |                           | $    | 1,134,891 |         |      | $ | 838,077 |          |   |  | 35 |   
|                        |                           |     
|Operating income (loss) |                           |      |           |         |      |   |         |          |   |  |    |   
|                        | Supplemental education    |      | $         | 100,795 |      |   | $       | 87,044   |   |  |    | 16 | 
|                        | Higher education          |      |           | 93,402  |      |   |         | 58,428   |   |  |    | 60 | 
|                        | Kaplan corporate overhead |      |           | (31,533 | )    |   |         | (36,782  | ) |  |    | 14 | 
|                        | Other                     |      |           | (41,209 | )    |   |         | (120,399 | ) |  |    | 66 | 
|                        |                           |     
|                       
|                        |                           | $    | 121,455   |         |      | $ | (11,709 | )        |   |  |   |   
|                        |                           |     











---



##### Table of Contents











Corporate Office.


Equity in Losses of Affiliates.




Non-Operating Items.




|                                                            |       |      |      |     |      |   |      |      | 
|----------------------------------------------------------- | ----- | ---- | ---- | --- | ---- | - | ---- | ---- | 
|                                                            |       | 2004 |      |     | 2003 |  
|                                                            |      
|Foreign currency gains, net                                 |       | $    | 5.5  |     |      | $ | 4.2  |     
|Gain on sale of interest in IHT                             |       |      |     |     |      |   | 49.8 |     
|Impairment write-downs on cost method and other investments |       |      | (0.7 | )   |      |   | (1.3 | )   
|Gain on exchange of cable system business                   |       |      | 0.5  |     |      |   |     |     
|Other gains                                                 |       |      | 2.8  |     |      |   | 2.7  |     
|                                                            |       |     
|                                                            | Total |      | $    | 8.1 |      |   | $    | 55.4 | 
|                                                            |       |     



Income Taxes.


FINANCIAL CONDITION: CAPITAL RESOURCES AND LIQUIDITY


Acquisitions, Exchanges and Dispositions.












---



##### Table of Contents











Capital Expenditures.


Investments in Marketable Equity Securities.




Common Stock Repurchases and Dividend Rate.


Liquidity.






364-day
















---



##### Table of Contents







Contractual Obligations


(in thousands)


|                                         |  |      |         |  |      |   |         |      |  |   |         |  |  |      |         |  |            |   |         |       |  |   |         |  |  |   |           | 
|---------------------------------------- |  | ---- | ------- |  | ---- | - | ------- | ---- |  | - | ------- |  |  | ---- | ------- |  | ---------- | - | ------- | ----- |  | - | ------- |  |  | - | --------- | 
|                                         |  | 2006 |         |  | 2007 |   |         | 2008 |  |   | 2009    |  |  | 2010 |         |  | Thereafter |   |         | Total | 
|                                         |  |      |        
|Debt                                     |  | $    | 24,820  |  |      | $ | 2,453   |      |  | $ | 1,295   |  |  | $    | 399,887 |  |            | $ |        |       |  | $ |        |  |  | $ | 428,455   | 
|Programming purchase commitments
    (1) |  |      | 137,530 |  |      |   | 133,733 |      |  |   | 111,888 |  |  |      | 86,138  |  |            |   | 58,252  |       |  |   | 189,246 |  |  |   | 716,787   | 
|Operating leases                         |  |      | 95,226  |  |      |   | 91,109  |      |  |   | 82,649  |  |  |      | 71,907  |  |            |   | 61,703  |       |  |   | 185,392 |  |  |   | 587,986   | 
|Other purchase obligations
    (2)       |  |      | 391,570 |  |      |   | 104,020 |      |  |   | 76,775  |  |  |      | 62,409  |  |            |   | 4,741   |       |  |   | 352     |  |  |   | 639,867   | 
|Long-term liabilities
    (3)            |  |      | 7,200   |  |      |   | 8,800   |      |  |   | 10,400  |  |  |      | 12,000  |  |            |   | 13,600  |       |  |   | 107,992 |  |  |   | 159,992   | 
|                                         |  |     
|Total                                    |  | $    | 656,346 |  |      | $ | 340,115 |      |  | $ | 283,007 |  |  | $    | 632,341 |  |            | $ | 138,296 |       |  | $ | 482,982 |  |  | $ | 2,533,087 | 
|                                         |  |     






|    |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                              
|--- | -------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------
|(1) | Includes commitments for the Companys television
    broadcasting and cable television businesses that are reflected
    in the Companys Consolidated Balance Sheet and commitments
    to purchase programming to be produced in future years.                                                                                                                                                                                                                                                            
|   
|(2) | Includes purchase obligations related to newsprint contracts,
    printing contracts, employment agreements, circulation
    distribution agreements, capital projects and other legally
    binding commitments. Other purchase orders made in the ordinary
    course of business are excluded from the table above. Any
    amounts for which the Company is liable under purchase orders
    are reflected in the Companys Consolidated Balance Sheet
    as Accounts payable and accrued liabilities.
|   
|(3) | Primarily made up of postretirement benefit obligations other
    than pensions. The Company has other long-term liabilities
    excluded from the table above, including obligations for
    deferred compensation, long-term incentive plans and long-term
    deferred revenue.                                                                                                                                                                                                                           

Other Commercial Commitments


(in thousands)


|            |      |          |         |         | 
|----------- | ---- | -------- | ------- | ------- | 
|            |      | Lines of |        
|Fiscal Year |      | Credit   |        
|            |     
|            | 2006 |          | $       | 250,000 | 
|            | 2007 |          |         | 350,000 | 
|            | 2008 |          |         |        | 
|            | 2009 |          |         |        | 
|            | 2010 |          |         |        | 
|Thereafter  |      |          |        |        
|            |      |          |        
|           
|Total       |      | $        | 600,000 |        
|            |      |          |        

Other.


CRITICAL ACCOUNTING POLICIES AND ESTIMATES






Revenue Recognition and Trade Accounts Receivable, Less
Estimated Returns, Doubtful Accounts and Allowances.




Pension Costs.










---



##### Table of Contents





Kaplan Stock Compensation.










Goodwill and Other Intangibles.


OTHER


New Accounting Pronouncements.










---



##### Table of Contents

















---



##### Table of Contents






REPORT OF INDEPENDENT REGISTERED PUBLIC ACCOUNTING FIRM







Consolidated financial statements and financial statement
schedule




Internal control over financial reporting


Internal Control  Integrated Framework Internal Control 
Integrated Framework

















---



##### Table of Contents






CONSOLIDATED STATEMENTS OF INCOME


|                                         |                                                |                   |           |           |            |   |           |              |   |   |           |           |  
|---------------------------------------- | ---------------------------------------------- | ----------------- | --------- | --------- | ---------- | - | --------- | ------------ | - | - | --------- | --------- | -
|                                         |                                                | Fiscal year ended |          
|                                         |                                                |                   |          
|                                         |                                                | January 1,        |           |           | January 2, |   |           | December 28, |  
|(in thousands, except per share amounts) |                                                | 2006              |           |           | 2005       |   |           | 2003         |  
|                                         |                                               
|Operating Revenues                       |                                                |                   |           |           |            |   |           |              |   |   |           |          
|                                         | Advertising                                    |                   | $         | 1,317,484 |            |   | $         | 1,346,870    |   |   | $         | 1,222,324 |  
|                                         | Circulation and subscriber                     |                   |           | 747,079   |            |   |           | 741,810      |   |   |           | 706,248   |  
|                                         | Education                                      |                   |           | 1,412,394 |            |   |           | 1,134,891    |   |   |           | 838,077   |  
|                                         | Other                                          |                   |           | 76,930    |            |   |           | 76,533       |   |   |           | 72,262    |  
|                                         |                                                |                  
|                                        
|                                         |                                                |                   | 3,553,887 |           |            |   | 3,300,104 |              |   |   | 2,838,911 |          
|                                         |                                                |                  
|                                        
|Operating Costs and Expenses             |                                                |                   |           |           |            |   |           |              |   |   |           |          
|                                         | Operating                                      |                   |           | 1,909,615 |            |   |           | 1,717,059    |   |   |           | 1,549,262 |  
|                                         | Selling, general and administrative            |                   |           | 931,337   |            |   |           | 835,367      |   |   |           | 792,292   |  
|                                         | Gain on sale of land                           |                   |           |          |            |   |           |             |   |   |           | (41,747   | )
|                                         | Depreciation of property, plant and equipment  |                   |           | 190,543   |            |   |           | 175,338      |   |   |           | 173,848   |  
|                                         | Amortization of goodwill and other intangibles |                   |           | 7,478     |            |   |           | 9,334        |   |   |           | 1,436     |  
|                                         |                                                |                  
|                                        
|                                         |                                                |                   | 3,038,973 |           |            |   | 2,737,098 |              |   |   | 2,475,091 |          
|                                         |                                                |                  
|Income from Operations                   |                                                |                   | 514,914   |           |            |   | 563,006   |              |   |   | 363,820   |          
|                                         | Equity in losses of affiliates                 |                   |           | (881      | )          |   |           | (2,291       | ) |   |           | (9,766    | )
|                                         | Interest income                                |                   |           | 3,385     |            |   |           | 1,622        |   |   |           | 953       |  
|                                         | Interest expense                               |                   |           | (26,754   | )          |   |           | (28,032      | ) |   |           | (27,804   | )
|                                         | Other income (expense), net                    |                   |           | 8,980     |            |   |           | 8,127        |   |   |           | 55,385    |  
|                                         |                                                |                  
|Income Before Income Taxes               |                                                |                   | 499,644   |           |            |   | 542,432   |              |   |   | 382,588   |          
|Provision for Income Taxes               |                                                |                   | 185,300   |           |            |   | 209,700   |              |   |   | 141,500   |          
|                                         |                                                |                  
|Net Income                               |                                                |                   | 314,344   |           |            |   | 332,732   |              |   |   | 241,088   |          
|Redeemable Preferred Stock Dividends     |                                                |                   | (981      | )         |            |   | (992      | )            |   |   | (1,027    | )        
|                                         |                                                |                  
|Net Income Available for Common Shares   |                                                | $                 | 313,363   |           |            | $ | 331,740   |              |   | $ | 240,061   |          
|                                         |                                                |                  
|Basic Earnings per Common Share          |                                                | $                 | 32.66     |           |            | $ | 34.69     |              |   | $ | 25.19     |          
|                                         |                                                |                  
|Diluted Earnings per Common Share        |                                                | $                 | 32.59     |           |            | $ | 34.59     |              |   | $ | 25.12     |          
|                                         |                                                |                  

CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME


|                                  |                                                                                         |                   |         |         |            |   |         |              |   |   |         |         |  
|--------------------------------- | --------------------------------------------------------------------------------------- | ----------------- | ------- | ------- | ---------- | - | ------- | ------------ | - | - | ------- | ------- | -
|                                  |                                                                                         | Fiscal year ended |        
|                                  |                                                                                         |                   |        
|                                  |                                                                                         | January 1,        |         |         | January 2, |   |         | December 28, |  
|(in thousands)                    |                                                                                         | 2006              |         |         | 2005       |   |         | 2003         |  
|                                  |                                                                                        
|Net Income                        |                                                                                         | $                 | 314,344 |         |            | $ | 332,732 |              |   | $ | 241,088 |        
|Other Comprehensive Income (Loss) |                                                                                         |                   |         |         |            |   |         |              |   |   |         |        
|                                  | Foreign currency translation adjustments                                                |                   |         | (8,834  | )          |   |         | 9,601        |   |   |         | 13,416  |  
|                                  | Reclassification adjustment on sale of affiliate investment                             |                   |         |        |            |   |         |             |   |   |         | (1,633  | )
|                                  | Change in net unrealized gain on available-for-sale securities                          |                   |         | (15,014 | )          |   |         | 63,022       |   |   |         | 31,426  |  
|                                  | Less reclassification adjustment for realized
    (gains) losses included in net income |                   |         | (13,085 | )          |   |         | (202         | ) |   |         | 214     |  
|                                  |                                                                                         |                  
|                                 
|                                  |                                                                                         |                   | (36,933 | )       |            |   | 72,421  |              |   |   | 43,423  |        
|                                  | Income tax benefit (expense) related to other comprehensive
    income (loss)           |                   |         | 10,964  |            |   |         | (24,577      | ) |   |         | (12,348 | )
|                                  |                                                                                         |                  
|                                 
|                                  |                                                                                         |                   | (25,969 | )       |            |   | 47,844  |              |   |   | 31,075  |        
|                                  |                                                                                         |                  
|Comprehensive Income              |                                                                                         | $                 | 288,375 |         |            | $ | 380,576 |              |   | $ | 272,163 |        
|                                  |                                                                                         |                  











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##### Table of Contents






CONSOLIDATED BALANCE SHEETS


|                                                                                            |                                             |            |           |            |            |   |           |            |  
|------------------------------------------------------------------------------------------- | ------------------------------------------- | ---------- | --------- | ---------- | ---------- | - | --------- | ---------- | -
|                                                                                            |                                             | January 1, |           |            | January 2, |  
|(in thousands)                                                                              |                                             | 2006       |           |            | 2005       |  
|                                                                                            |                                            
|Assets                                                                                      |                                             |            |           |            |            |   |           |           
|Current Assets                                                                              |                                             |            |           |            |            |   |           |           
|                                                                                            | Cash and cash equivalents                   |            | $         | 215,861    |            |   | $         | 119,400    |  
|                                                                                            | Investments in marketable equity securities |            |           | 67,596     |            |   |           | 149,303    |  
|                                                                                            | Accounts receivable, net                    |            |           | 398,552    |            |   |           | 362,862    |  
|                                                                                            | Federal and state income taxes              |            |           | 26,651     |            |   |           | 18,375     |  
|                                                                                            | Deferred income taxes                       |            |           | 37,320     |            |   |           | 30,871     |  
|                                                                                            | Inventories                                 |            |           | 15,079     |            |   |           | 25,127     |  
|                                                                                            | Other current assets                        |            |           | 57,267     |            |   |           | 44,571     |  
|                                                                                            |                                             |           
|                                                                                           
|                                                                                            |                                             |            | 818,326   |            |            |   | 750,509   |           
|Property, Plant and Equipment                                                               |                                             |            |           |            |            |   |           |           
|                                                                                            | Buildings                                   |            |           | 327,569    |            |   |           | 304,606    |  
|                                                                                            | Machinery, equipment and fixtures           |            |           | 1,839,983  |            |   |           | 1,730,997  |  
|                                                                                            | Leasehold improvements                      |            |           | 167,116    |            |   |           | 133,674    |  
|                                                                                            |                                             |           
|                                                                                           
|                                                                                            |                                             |            | 2,334,668 |            |            |   | 2,169,277 |           
|                                                                                            | Less accumulated depreciation               |            |           | (1,325,676 | )          |   |           | (1,197,375 | )
|                                                                                            |                                             |           
|                                                                                           
|                                                                                            |                                             |            | 1,008,992 |            |            |   | 971,902   |           
|                                                                                            | Land                                        |            |           | 42,257     |            |   |           | 37,470     |  
|                                                                                            | Construction in progress                    |            |           | 91,383     |            |   |           | 80,580     |  
|                                                                                            |                                             |           
|                                                                                           
|                                                                                            |                                             |            | 1,142,632 |            |            |   | 1,089,952 |           
|Investments in Marketable Equity Securities                                                 |                                             |            | 262,325   |            |            |   | 260,433   |           
|Investments in Affiliates                                                                   |                                             |            | 66,775    |            |            |   | 61,814    |           
|Goodwill, Net                                                                               |                                             |            | 1,125,570 |            |            |   | 1,023,140 |           
|Indefinite-Lived Intangible Assets, Net                                                     |                                             |            | 494,692   |            |            |   | 493,192   |           
|Amortized Intangible Assets, Net                                                            |                                             |            | 22,814    |            |            |   | 7,879     |           
|Prepaid Pension Cost                                                                        |                                             |            | 593,469   |            |            |   | 556,747   |           
|Deferred Charges and Other Assets                                                           |                                             |            | 58,170    |            |            |   | 65,099    |           
|                                                                                            |                                             |           
|                                                                                           
|                                                                                            |                                             | $          | 4,584,773 |            |            | $ | 4,308,765 |           
|                                                                                            |                                             |           
|The information on pages 48 through 63 is an integral part of
    the financial statements. |                                             |            |           |           









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##### Table of Contents





|                                                                                                                                                                                           |                                                                                       |                                                                                                                                                |           |            |            |   |           |            |        | 
|------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------ | ------------------------------------------------------------------------------------- | ---------------------------------------------------------------------------------------------------------------------------------------------- | --------- | ---------- | ---------- | - | --------- | ---------- | ------ | 
|                                                                                                                                                                                           |                                                                                       | January 1,                                                                                                                                     |           |            | January 2, |  
|(in thousands, except share amounts)                                                                                                                                                       |                                                                                       | 2006                                                                                                                                           |           |            | 2005       |  
|                                                                                                                                                                                           |                                                                                      
|Liabilities and Shareholders Equity                                                                                                                                                       |                                                                                       |                                                                                                                                                |           |            |            |   |           |           
|Current Liabilities                                                                                                                                                                        |                                                                                       |                                                                                                                                                |           |            |            |   |           |           
|                                                                                                                                                                                           | Accounts payable and accrued liabilities                                              |                                                                                                                                                | $         | 438,693    |            |   | $         | 443,332    |       
|                                                                                                                                                                                           | Deferred revenue                                                                      |                                                                                                                                                |           | 231,208    |            |   |           | 186,593    |       
|                                                                                                                                                                                           | Short-term borrowings                                                                 |                                                                                                                                                |           | 24,820     |            |   |           | 58,236     |       
|                                                                                                                                                                                           |                                                                                       |                                                                                                                                               
|                                                                                                                                                                                          
|                                                                                                                                                                                           |                                                                                       |                                                                                                                                                | 694,721   |            |            |   | 688,161   |           
|Postretirement Benefits Other Than Pensions                                                                                                                                                |                                                                                       |                                                                                                                                                | 150,909   |            |            |   | 145,490   |           
|Other Liabilities                                                                                                                                                                          |                                                                                       |                                                                                                                                                | 262,270   |            |            |   | 228,654   |           
|Deferred Income Taxes                                                                                                                                                                      |                                                                                       |                                                                                                                                                | 422,548   |            |            |   | 403,698   |           
|Long-Term Debt                                                                                                                                                                             |                                                                                       |                                                                                                                                                | 403,635   |            |            |   | 425,889   |           
|                                                                                                                                                                                           |                                                                                       |                                                                                                                                               
|                                                                                                                                                                                          
|                                                                                                                                                                                           |                                                                                       |                                                                                                                                                | 1,934,083 |            |            |   | 1,891,892 |           
|                                                                                                                                                                                           |                                                                                       |                                                                                                                                               
|Commitments and Contingencies                                                                                                                                                              |                                                                                       |                                                                                                                                                |           |            |            |   |           |           
|Redeemable Preferred Stock,Series A, $1 par
    value, with a redemption and liquidation value of
    $1,000 per share; 23,000 shares authorized;
    12,267 shares issued and outstanding |                                                                                       |                                                                                                                                                | 12,267    |            |            |   | 12,267    |           
|                                                                                                                                                                                           |                                                                                       |                                                                                                                                               
|                                                                                                                                                                                          
|Preferred Stock,$1 par value; 977,000 shares
    authorized, none issued                                                                                                                   |                                                                                       |                                                                                                                                                |          |            |            |   |          |           
|                                                                                                                                                                                           |                                                                                       |                                                                                                                                               
|Common Shareholders Equity                                                                                                                                                                |                                                                                       |                                                                                                                                                |           |            |            |   |           |           
|                                                                                                                                                                                           | Common stock                                                                          |                                                                                                                                                |           |            |            |   |           |            |       
|                                                                                                                                                                                           |                                                                                       | Class A common stock, $1 par value;
    7,000,000 shares authorized; 1,722,250 shares issued
    and outstanding                               |           |            | 1,722      |   |           |            | 1,722  | 
|                                                                                                                                                                                           |                                                                                       | Class B common stock, $1 par value;
    40,000,000 shares authorized; 18,277,750 shares
    issued; 7,879,281 and 7,853,822 shares outstanding |           |            | 18,278     |   |           |            | 18,278 | 
|                                                                                                                                                                                           | Capital in excess of par value                                                        |                                                                                                                                                |           | 207,328    |            |   |           | 186,827    |       
|                                                                                                                                                                                           | Retained earnings                                                                     |                                                                                                                                                |           | 3,871,587  |            |   |           | 3,629,222  |       
|                                                                                                                                                                                           | Accumulated other comprehensive income, net of taxes                                  |                                                                                                                                                |           |            |            |   |           |            |       
|                                                                                                                                                                                           |                                                                                       | Cumulative foreign currency translation adjustment                                                                                             |           |            | 5,039      |   |           |            | 13,873 | 
|                                                                                                                                                                                           |                                                                                       | Unrealized gain on available-for-sale securities                                                                                               |           |            | 58,313     |   |           |            | 75,448 | 
|                                                                                                                                                                                           | Unearned stock compensation                                                           |                                                                                                                                                |           | (14,656    | )          |   |           | (7,876     | )     
|                                                                                                                                                                                           | Cost of 10,398,469 and 10,423,928 shares of Class B
    common stock held in treasury |                                                                                                                                                |           | (1,509,188 | )          |   |           | (1,512,888 | )     
|                                                                                                                                                                                           |                                                                                       |                                                                                                                                               
|                                                                                                                                                                                          
|                                                                                                                                                                                           |                                                                                       |                                                                                                                                                | 2,638,423 |            |            |   | 2,404,606 |           
|                                                                                                                                                                                           |                                                                                       |                                                                                                                                               
|                                                                                                                                                                                          
|                                                                                                                                                                                           |                                                                                       | $                                                                                                                                              | 4,584,773 |            |            | $ | 4,308,765 |           
|                                                                                                                                                                                           |                                                                                       |                                                                                                                                               
|The information on pages 48 through 63 is an integral part of
    the financial statements.                                                                                                |                                                                                       |                                                                                                                                                |           |           









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##### Table of Contents






CONSOLIDATED STATEMENTS OF CASH FLOWS


|                                               |                                                                                       |                                                                          |                                                                 |          |            |         |         |              |          |         |         |          |          |         |  
|---------------------------------------------- | ------------------------------------------------------------------------------------- | ------------------------------------------------------------------------ | --------------------------------------------------------------- | -------- | ---------- | ------- | ------- | ------------ | -------- | ------- | ------- | -------- | -------- | ------- | -
|                                               |                                                                                       | Fiscal year ended                                                        |                                                                
|                                               |                                                                                       |                                                                          |                                                                
|                                               |                                                                                       | January 1,                                                               |                                                                 |          | January 2, |         |         | December 28, |         
|(In thousands)                                 |                                                                                       | 2006                                                                     |                                                                 |          | 2005       |         |         | 2003         |         
|                                               |                                                                                      
|Cash Flows from Operating Activities:          |                                                                                       |                                                                          |                                                                 |          |            |         |         |              |          |         |         |         
|                                               | Net income                                                                            |                                                                          | $                                                               | 314,344  |            |         | $       | 332,732      |          |         | $       | 241,088  |         
|                                               | Adjustments to reconcile net income to net cash provided by
    operating activities: |                                                                          |                                                                 |          |            |         |         |              |          |         |         |          |         
|                                               |                                                                                       | Depreciation of property, plant and equipment                            |                                                                 |          | 190,543    |         |         |              | 175,338  |         |         |          | 173,848  |        
|                                               |                                                                                       | Amortization of goodwill and other intangibles                           |                                                                 |          | 7,478      |         |         |              | 9,334    |         |         |          | 1,436    |        
|                                               |                                                                                       | Net pension benefit                                                      |                                                                 |          | (37,914    | )       |         |              | (41,954  | )       |         |          | (55,137  | )      
|                                               |                                                                                       | Early retirement program expense                                         |                                                                 |          | 1,192      |         |         |              | 132      |         |         |          | 34,135   |        
|                                               |                                                                                       | Gain from sale or exchange of businesses                                 |                                                                 |          |           |         |         |              | (497     | )       |         |          | (49,762  | )      
|                                               |                                                                                       | Gain on sale of non-operating land and property, plant and
    equipment |                                                                 |          | (5,148     | )       |         |              | (2,669   | )       |         |          | (41,734  | )      
|                                               |                                                                                       | Gain on disposition of marketable equity securities                      |                                                                 |          | (12,661    | )       |         |              |         |         |         |          |         |        
|                                               |                                                                                       | Property, plant and equipment losses                                     |                                                                 |          | 9,665      |         |         |              |         |         |         |          |         |        
|                                               |                                                                                       | Cost method investment and other write-downs                             |                                                                 |          | 1,465      |         |         |              | 677      |         |         |          | 1,337    |        
|                                               |                                                                                       | Equity in losses of affiliates, net of distributions                     |                                                                 |          | 1,731      |         |         |              | 3,091    |         |         |          | 10,516   |        
|                                               |                                                                                       | Foreign exchange loss (gain)                                             |                                                                 |          | 8,099      |         |         |              | (5,505   | )       |         |          | (4,187   | )      
|                                               |                                                                                       | Provision for deferred income taxes                                      |                                                                 |          | 29,297     |         |         |              | 44,321   |         |         |          | 30,704   |        
|                                               |                                                                                       | Change in assets and liabilities:                                        |                                                                 |          |            |         |         |              |          |         |         |          |          |        
|                                               |                                                                                       |                                                                          | Increase in accounts receivable, net                            |          |            | (19,416 | )       |              |          | (23,722 | )       |          |          | (9,936  | )
|                                               |                                                                                       |                                                                          | Decrease in inventories                                         |          |            | 11,483  |         |              |          | 2,640   |         |          |          | 829     |  
|                                               |                                                                                       |                                                                          | (Decrease) increase in accounts payable and accrued liabilities |          |            | (27,033 | )       |              |          | 70,058  |         |          |          | (14,308 | )
|                                               |                                                                                       |                                                                          | Increase in income taxes receivable                             |          |            | (8,139  | )       |              |          | (13,079 | )       |          |          | (10,171 | )
|                                               |                                                                                       |                                                                          | Decrease in other assets and other liabilities, net             |          |            | 53,618  |         |              |          | 3,477   |         |          |          | 34,460  |  
|                                               |                                                                                       | Other                                                                    |                                                                 |          | 4,168      |         |         |              | 7,347    |         |         |          | (5,404   | )      
|                                               |                                                                                       |                                                                         
|                                              
|                                               |                                                                                       |                                                                          | Net cash provided by operating activities                       |          |            | 522,772 |         |              |          | 561,721 |         |          |          | 337,714 |  
|                                               |                                                                                       |                                                                         
|Cash Flows from Investing Activities:          |                                                                                       |                                                                          |                                                                 |          |            |         |         |              |          |         |         |         
|                                               | Investments in certain businesses                                                     |                                                                          |                                                                 | (143,478 | )          |         |         | (55,232      | )        |         |         | (134,541 | )       
|                                               | Purchases of property, plant and equipment                                            |                                                                          |                                                                 | (238,349 | )          |         |         | (204,632     | )        |         |         | (125,588 | )       
|                                               | Proceeds from sale of marketable equity securities                                    |                                                                          |                                                                 | 64,801   |            |         |         |             |          |         |         |         |         
|                                               | Proceeds from sale of property, plant and equipment                                   |                                                                          |                                                                 | 24,077   |            |         |         | 5,340        |          |         |         | 44,973   |         
|                                               | Purchases of cost method investments                                                  |                                                                          |                                                                 | (8,709   | )          |         |         | (224         | )        |         |         | (849     | )       
|                                               | Investments in affiliates                                                             |                                                                          |                                                                 | (4,981   | )          |         |         |             |          |         |         | (5,976   | )       
|                                               | Purchases of marketable equity securities                                             |                                                                          |                                                                 |         |            |         |         | (94,560      | )        |         |         |         |         
|                                               | Net proceeds from sale of businesses                                                  |                                                                          |                                                                 |         |            |         |         |             |          |         |         | 65,000   |         
|                                               |                                                                                       |                                                                         
|                                              
|                                               |                                                                                       | Net cash used in investing activities                                    |                                                                 |          | (306,639   | )       |         |              | (349,308 | )       |         |          | (156,981 | )      
|                                               |                                                                                       |                                                                         
|Cash Flows from Financing Activities:          |                                                                                       |                                                                          |                                                                 |          |            |         |         |              |          |         |         |         
|                                               | Repayment of commercial paper, net                                                    |                                                                          |                                                                 | (50,201  | )          |         |         | (138,116     | )        |         |         | (70,942  | )       
|                                               | Principal payments on debt                                                            |                                                                          |                                                                 | (6,964   | )          |         |         | (19,253      | )        |         |         | (784     | )       
|                                               | Dividends paid                                                                        |                                                                          |                                                                 | (71,979  | )          |         |         | (67,917      | )        |         |         | (56,289  | )       
|                                               | Common shares repurchased                                                             |                                                                          |                                                                 |         |            |         |         |             |          |         |         | (687     | )       
|                                               | Proceeds from exercise of stock options                                               |                                                                          |                                                                 | 6,832    |            |         |         | 15,616       |          |         |         | 5,898    |         
|                                               | Cash overdraft.                                                                       |                                                                          |                                                                 | 6,534    |            |         |         | (1,953       | )        |         |         | 1,245    |         
|                                               |                                                                                       |                                                                         
|                                               |                                                                                       | Net cash used in financing activities                                    |                                                                 |          | (115,778   | )       |         |              | (211,623 | )       |         |          | (121,559 | )      
|                                               |                                                                                       |                                                                         
|Effect of Currency Exchange Rate Change        |                                                                                       |                                                                          | (3,894                                                          | )        |            |         | 2,049   |              |          |         | 737     |         
|                                               |                                                                                       |                                                                         
|                                              
|Net Increase in Cash and Cash Equivalents      |                                                                                       |                                                                          | 96,461                                                          |          |            |         | 2,839   |              |          |         | 59,911  |         
|Cash and Cash Equivalents at Beginning of Year |                                                                                       |                                                                          | 119,400                                                         |          |            |         | 116,561 |              |          |         | 56,650  |         
|                                               |                                                                                       |                                                                         
|Cash and Cash Equivalents at End of Year       |                                                                                       | $                                                                        | 215,861                                                         |          |            | $       | 119,400 |              |          | $       | 116,561 |         
|                                               |                                                                                       |                                                                         
|Supplemental Cash Flow Information:            |                                                                                       |                                                                          |                                                                 |          |            |         |         |              |          |         |         |         
|                                               | Cash paid during the year for:                                                        |                                                                          |                                                                 |          |            |         |         |              |          |         |         |          |         
|                                               |                                                                                       | Income taxes                                                             |                                                                 | $        | 161,600    |         |         | $            | 171,400  |         |         | $        | 116,900  |        
|                                               |                                                                                       | Interest, net of amounts capitalized                                     |                                                                 | $        | 27,300     |         |         | $            | 25,500   |         |         | $        | 27,500   |        











---



##### Table of Contents






CONSOLIDATED STATEMENTS OF CHANGES IN COMMON
SHAREHOLDERS EQUITY


|                                                                                            |                                                                                                  |         |       |         |  |            |        |          |  |             |         |            |  |              |           |                |   |   |        |        |   |   |        |         |   |   |         |         |   |   |            |       |  
|------------------------------------------------------------------------------------------- | ------------------------------------------------------------------------------------------------ | ------- | ----- | ------- |  | ---------- | ------ | -------- |  | ----------- | ------- | ---------- |  | ------------ | --------- | -------------- | - | - | ------ | ------ | - | - | ------ | ------- | - | - | ------- | ------- | - | - | ---------- | ----- | -
|                                                                                            |                                                                                                  |         |       |         |  |            |        |          |  | Cumulative  |         | Unrealized |  |              |           |               
|                                                                                            |                                                                                                  |         |       |         |  |            |        |          |  | Foreign     |         | Gain on    |  |              |           |               
|                                                                                            |                                                                                                  | Class A |       | Class B |  | Capital in |        |          |  | Currency    |         | Available- |  | Unearned     |           |               
|                                                                                            |                                                                                                  | Common  |       | Common  |  | Excess of  |        | Retained |  | Translation |         | for-Sale   |  | Stock        |           |               
|(in thousands)                                                                              |                                                                                                  | Stock   |       | Stock   |  | Par Value  |        | Earnings |  | Adjustment  |         | Securities |  | Compensation |           | Treasury Stock
|                                                                                           
|                                                                                           
|Balance, December 29, 2002                                                                  |                                                                                                  | $       | 1,722 |         |  | $          | 18,278 |          |  | $           | 149,090 |            |  | $            | 3,179,607 |                |   | $ | (7,511 | )      |   | $ | 17,913 |         |   | $ | (6,907  | )       |   | $ | (1,521,806 | )    
|                                                                                            | Net income for the year                                                                          |         |       |         |  |            |        |          |  |             |         |            |  |              |           | 241,088        |   |   |        |        |   |   |        |         |   |   |         |         |   |   |            |       |  
|                                                                                            | Dividends paid on common stock  $5.80 per share                                                 |         |       |         |  |            |        |          |  |             |         |            |  |              |           | (55,261        | ) |   |        |        |   |   |        |         |   |   |         |         |   |   |            |       |  
|                                                                                            | Dividends paid on redeemable preferred stock                                                     |         |       |         |  |            |        |          |  |             |         |            |  |              |           | (1,027         | ) |   |        |        |   |   |        |         |   |   |         |         |   |   |            |       |  
|                                                                                            | Repurchase of 910 shares of Class B common stock                                                 |         |       |         |  |            |        |          |  |             |         |            |  |              |           |                |   |   |        |        |   |   |        |         |   |   |         |         |   |   |            | (687  | )
|                                                                                            | Issuance of 31,697 shares of Class B common stock, net
    of restricted stock award forfeitures |         |       |         |  |            |        |          |  |             |         | 14,147     |  |              |           |                |   |   |        |        |   |   |        |         |   |   |         | (11,315 | ) |   |            | 4,599 |  
|                                                                                            | Amortization of unearned stock compensation                                                      |         |       |         |  |            |        |          |  |             |         |            |  |              |           |                |   |   |        |        |   |   |        |         |   |   |         | 5,962   |   |   |            |       |  
|                                                                                            | Change in foreign currency translation adjustment (net of taxes)                                 |         |       |         |  |            |        |          |  |             |         |            |  |              |           |                |   |   |        | 11,783 |   |   |        |         |   |   |         |         |   |   |            |       |  
|                                                                                            | Change in unrealized gain on available-for-sale securities (net
    of taxes)                    |         |       |         |  |            |        |          |  |             |         |            |  |              |           |                |   |   |        |        |   |   |        | 19,292  |   |   |         |         |   |   |            |       |  
|                                                                                            | Stock option expense                                                                             |         |       |         |  |            |        |          |  |             |         | 606        |  |              |           |                |   |   |        |        |   |   |        |         |   |   |         |         |   |   |            |       |  
|                                                                                            | Tax benefits arising from employee stock plans                                                   |         |       |         |  |            |        |          |  |             |         | 3,108      |  |              |           |                |   |   |        |        |   |   |        |         |   |   |         |         |   |   |            |       |  
|                                                                                            |                                                                                                  |         |       |         |  |            |        |          |  |            
|                                                                                            |                                                                                                  |         |       |         |  |            |        |         
|Balance, December 28, 2003                                                                  |                                                                                                  |         | 1,722 |         |  |            | 18,278 |          |  |             | 166,951 |            |  |              | 3,364,407 |                |   |   | 4,272  |        |   |   | 37,205 |         |   |   | (12,260 | )       |   |   | (1,517,894 | )    
|                                                                                            | Net income for the year                                                                          |         |       |         |  |            |        |          |  |             |         |            |  |              |           | 332,732        |   |   |        |        |   |   |        |         |   |   |         |         |   |   |            |       |  
|                                                                                            | Dividends paid on common stock  $7.00 per share                                                 |         |       |         |  |            |        |          |  |             |         |            |  |              |           | (66,925        | ) |   |        |        |   |   |        |         |   |   |         |         |   |   |            |       |  
|                                                                                            | Dividends paid on redeemable preferred stock                                                     |         |       |         |  |            |        |          |  |             |         |            |  |              |           | (992           | ) |   |        |        |   |   |        |         |   |   |         |         |   |   |            |       |  
|                                                                                            | Issuance of 34,492 shares of Class B common stock, net
    of restricted stock award forfeitures |         |       |         |  |            |        |          |  |             |         | 11,956     |  |              |           |                |   |   |        |        |   |   |        |         |   |   |         | (1,793  | ) |   |            | 5,006 |  
|                                                                                            | Amortization of unearned stock compensation                                                      |         |       |         |  |            |        |          |  |             |         |            |  |              |           |                |   |   |        |        |   |   |        |         |   |   |         | 6,177   |   |   |            |       |  
|                                                                                            | Change in foreign currency translation adjustment (net of taxes)                                 |         |       |         |  |            |        |          |  |             |         |            |  |              |           |                |   |   |        | 9,601  |   |   |        |         |   |   |         |         |   |   |            |       |  
|                                                                                            | Change in unrealized gain on available-for-sale securities (net
    of taxes)                    |         |       |         |  |            |        |          |  |             |         |            |  |              |           |                |   |   |        |        |   |   |        | 38,243  |   |   |         |         |   |   |            |       |  
|                                                                                            | Stock option expense                                                                             |         |       |         |  |            |        |          |  |             |         | 829        |  |              |           |                |   |   |        |        |   |   |        |         |   |   |         |         |   |   |            |       |  
|                                                                                            | Tax benefits arising from employee stock plans                                                   |         |       |         |  |            |        |          |  |             |         | 7,091      |  |              |           |                |   |   |        |        |   |   |        |         |   |   |         |         |   |   |            |       |  
|                                                                                            |                                                                                                  |         |       |         |  |            |        |          |  |            
|                                                                                            |                                                                                                  |         |       |         |  |            |        |         
|Balance, January 2, 2005                                                                    |                                                                                                  |         | 1,722 |         |  |            | 18,278 |          |  |             | 186,827 |            |  |              | 3,629,222 |                |   |   | 13,873 |        |   |   | 75,448 |         |   |   | (7,876  | )       |   |   | (1,512,888 | )    
|                                                                                            | Net income for the year                                                                          |         |       |         |  |            |        |          |  |             |         |            |  |              |           | 314,344        |   |   |        |        |   |   |        |         |   |   |         |         |   |   |            |       |  
|                                                                                            | Dividends paid on common stock  $7.40 per share                                                 |         |       |         |  |            |        |          |  |             |         |            |  |              |           | (70,998        | ) |   |        |        |   |   |        |         |   |   |         |         |   |   |            |       |  
|                                                                                            | Dividends paid on redeemable preferred stock                                                     |         |       |         |  |            |        |          |  |             |         |            |  |              |           | (981           | ) |   |        |        |   |   |        |         |   |   |         |         |   |   |            |       |  
|                                                                                            | Issuance of 25,459 shares of Class B common stock, net
    of restricted stock award forfeitures |         |       |         |  |            |        |          |  |             |         | 15,496     |  |              |           |                |   |   |        |        |   |   |        |         |   |   |         | (12,358 | ) |   |            | 3,700 |  
|                                                                                            | Amortization of unearned stock compensation                                                      |         |       |         |  |            |        |          |  |             |         |            |  |              |           |                |   |   |        |        |   |   |        |         |   |   |         | 5,578   |   |   |            |       |  
|                                                                                            | Change in foreign currency translation adjustment (net of taxes)                                 |         |       |         |  |            |        |          |  |             |         |            |  |              |           |                |   |   |        | (8,834 | ) |   |        |         |   |   |         |         |   |   |            |       |  
|                                                                                            | Change in unrealized gain on available-for-sale securities (net
    of taxes)                    |         |       |         |  |            |        |          |  |             |         |            |  |              |           |                |   |   |        |        |   |   |        | (17,135 | ) |   |         |         |   |   |            |       |  
|                                                                                            | Stock option expense                                                                             |         |       |         |  |            |        |          |  |             |         | 1,101      |  |              |           |                |   |   |        |        |   |   |        |         |   |   |         |         |   |   |            |       |  
|                                                                                            | Tax benefits arising from employee stock plans                                                   |         |       |         |  |            |        |          |  |             |         | 3,904      |  |              |           |                |   |   |        |        |   |   |        |         |   |   |         |         |   |   |            |       |  
|                                                                                            |                                                                                                  |         |       |         |  |            |        |          |  |            
|                                                                                            |                                                                                                  |         |       |         |  |            |        |         
|Balance, January 1, 2006                                                                    |                                                                                                  | $       | 1,722 |         |  | $          | 18,278 |          |  | $           | 207,328 |            |  | $            | 3,871,587 |                |   | $ | 5,039  |        |   | $ | 58,313 |         |   | $ | (14,656 | )       |   | $ | (1,509,188 | )    
|                                                                                            |                                                                                                  |         |       |         |  |            |        |          |  |            
|The information on pages 48 through 63 is an integral part of
    the financial statements.









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##### Table of Contents






NOTES TO CONSOLIDATED FINANCIAL STATEMENTS


A. SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES


Fiscal Year. 53-week


Principles of Consolidation.


Presentation.


Use of Estimates.


Cash Equivalents.


Investments in Marketable Equity Securities.


Inventories. first-in,


Property, Plant and Equipment.






Investments in Affiliates.


Cost Method Investments.


Goodwill and Other Intangibles.












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##### Table of Contents





Long-Lived Assets.


Program Rights.


Revenue Recognition.




Postretirement Benefits Other Than Pensions.


Income Taxes.


Foreign Currency Translation.


Stock Options.


|                                                                                                                                                        |  |      |         |   |      |   |         |      |  |   |         |  
|------------------------------------------------------------------------------------------------------------------------------------------------------- |  | ---- | ------- | - | ---- | - | ------- | ---- |  | - | ------- | -
|                                                                                                                                                        |  | 2005 |         |   | 2004 |   |         | 2003 | 
|                                                                                                                                                        | 
|Net income available for common shares, as reported                                                                                                     |  | $    | 313,363 |   |      | $ | 331,740 |      |  | $ | 240,061 |  
|Add: Company stock option compensation expense included in net
    income, net of related tax effects                                                   |  |      | 694     |   |      |   | 536     |      |  |   | 370     |  
|Deduct: Total Company stock option compensation expense
    determined under the fair-value-based method for all awards, net
    of related tax effects |  |      | (1,071  | ) |      |   | (2,946  | )    |  |   | (3,529  | )
|                                                                                                                                                        |  |     
|Pro forma net income available for common shares                                                                                                        |  | $    | 312,986 |   |      | $ | 329,330 |      |  | $ | 236,902 |  
|                                                                                                                                                        |  |     
|Basic earnings per share, as reported                                                                                                                   |  | $    | 32.66   |   |      | $ | 34.69   |      |  | $ | 25.19   |  
|Pro forma basic earnings per share                                                                                                                      |  | $    | 32.62   |   |      | $ | 34.44   |      |  | $ | 24.86   |  
|Diluted earnings per share, as reported                                                                                                                 |  | $    | 32.59   |   |      | $ | 34.59   |      |  | $ | 25.12   |  
|Pro forma diluted earnings per share                                                                                                                    |  | $    | 32.55   |   |      | $ | 34.34   |      |  | $ | 24.79   |  











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##### Table of Contents







|   |                                                                     
|-- | --------------------------------------------------------------------
|B. | ACCOUNTS RECEIVABLE AND ACCOUNTS PAYABLE AND ACCRUED
    LIABILITIES



|                                                                                                               |  |      |         |  |      |   |         | 
|-------------------------------------------------------------------------------------------------------------- |  | ---- | ------- |  | ---- | - | ------- | 
|                                                                                                               |  | 2005 |         |  | 2004 |  
|                                                                                                               | 
|Trade accounts receivable, less estimated returns, doubtful
    accounts and allowances of $78,099 and $70,965 |  | $    | 375,668 |  |      | $ | 342,879 | 
|Other accounts receivable                                                                                      |  |      | 22,884  |  |      |   | 19,983  | 
|                                                                                                               |  |     
|                                                                                                               |  | $    | 398,552 |  |      | $ | 362,862 | 
|                                                                                                               |  |     



|                                          |  |      |         |  |      |   |         | 
|----------------------------------------- |  | ---- | ------- |  | ---- | - | ------- | 
|                                          |  | 2005 |         |  | 2004 |  
|                                          | 
|Accounts payable and accrued expenses     |  | $    | 272,441 |  |      | $ | 231,066 | 
|Accrued compensation and related benefits |  |      | 158,612 |  |      |   | 204,225 | 
|Due to affiliates (newsprint)             |  |      | 7,640   |  |      |   | 8,041   | 
|                                          |  |     
|                                          |  | $    | 438,693 |  |      | $ | 443,332 | 
|                                          |  |     





|   |            
|-- | -----------
|C. | INVESTMENTS

Investments in Marketable Equity Securities.


|                     |  |      |         |  |      |   |         | 
|-------------------- |  | ---- | ------- |  | ---- | - | ------- | 
|                     |  | 2005 |         |  | 2004 |  
|                     | 
|Total cost           |  | $    | 234,196 |  |      | $ | 285,912 | 
|Net unrealized gains |  |      | 95,725  |  |      |   | 123,824 | 
|                     |  |     
|Total fair value     |  | $    | 329,921 |  |      | $ | 409,736 | 
|                     |  |     







Investments in Affiliates.


|                                               |  |      |        |  |      |   |        | 
|---------------------------------------------- |  | ---- | ------ |  | ---- | - | ------ | 
|                                               |  | 2005 |        |  | 2004 |  
|                                               | 
|BrassRing                                      |  | $    | 11,349 |  |      | $ | 8,755  | 
|Bowater Mersey Paper Company                   |  |      | 54,407 |  |      |   | 52,112 | 
|Los Angeles TimesWashington Post News Service |  |      | 1,019  |  |      |   | 947    | 
|                                               |  |     
|                                              
|                                               |  | $    | 66,775 |  |      | $ | 61,814 | 
|                                               |  |     



|                      |                               |      |   |         |      |  |   |         |   |  |   |         |  
|--------------------- | ----------------------------- | ---- | - | ------- | ---- |  | - | ------- | - |  | - | ------- | -
|                      |                               | 2005 |   |         | 2004 |  |   | 2003    |  
|                      |                              
|Financial Position    |                               |      |   |         |      |  |   |         |   |  |   |        
|                      | Working capital               |      | $ | 13,861  |      |  | $ | 9,014   |   |  | $ | 11,108  |  
|                      | Property, plant and equipment |      |   | 131,823 |      |  |   | 137,321 |   |  |   | 140,917 |  
|                      | Total assets                  |      |   | 214,333 |      |  |   | 202,904 |   |  |   | 214,658 |  
|                      | Long-term debt                |      |   |        |      |  |   |        |   |  |   |        |  
|                      | Net equity                    |      |   | 164,801 |      |  |   | 155,147 |   |  |   | 149,584 |  
|Results of Operations |                               |      |   |         |      |  |   |         |   |  |   |        
|                      | Operating revenues            |      | $ | 236,233 |      |  | $ | 221,618 |   |  | $ | 174,505 |  
|                      | Operating income (loss)       |      |   | 3,513   |      |  |   | 1,695   |   |  |   | (18,753 | )
|                      | Net loss                      |      |   | (1,806  | )    |  |   | (4,577  | ) |  |   | (20,164 | )









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##### Table of Contents





|                                     |  |      |        |   |      |   |        |  
|------------------------------------ |  | ---- | ------ | - | ---- | - | ------ | -
|                                     |  | 2005 |        |   | 2004 |  
|                                     | 
|Beginning investment                 |  | $    | 61,814 |   |      | $ | 61,312 |  
|Additional investment                |  |      | 4,981  |   |      |   |       |  
|Equity in losses                     |  |      | (881   | ) |      |   | (2,291 | )
|Dividends and distributions received |  |      | (850   | ) |      |   | (800   | )
|Foreign currency translation         |  |      | 1,711  |   |      |   | 3,593  |  
|                                     |  |     
|                                    
|Ending investment                    |  | $    | 66,775 |   |      | $ | 61,814 |  
|                                     |  |     





Cost Method Investments.




Cash and Cash Equivalents.


D. INCOME TAXES




|     |                 |         |         |         |          |   |        |        |   |   |         |         | 
|---- | --------------- | ------- | ------- | ------- | -------- | - | ------ | ------ | - | - | ------- | ------- | 
|     |                 | Current |         |         | Deferred |   |        | Total  |  
|     |                
|2005 |                 |         |         |         |          |   |        |        |   |   |         |        
|     | U.S. Federal    |         | $       | 132,650 |          |   | $      | 22,591 |   |   | $       | 155,241 | 
|     | Foreign         |         |         | 4,849   |          |   |        | 29     |   |   |         | 4,878   | 
|     | State and local |         |         | 18,504  |          |   |        | 6,677  |   |   |         | 25,181  | 
|     |                 |        
|    
|     |                 | $       | 156,003 |         |          | $ | 29,297 |        |   | $ | 185,300 |        
|     |                 |        
|2004 |                 |         |         |         |          |   |        |        |   |   |         |        
|     | U.S. Federal    |         | $       | 138,429 |          |   | $      | 35,544 |   |   | $       | 173,973 | 
|     | Foreign         |         |         | 4,751   |          |   |        | (361   | ) |   |         | 4,390   | 
|     | State and local |         |         | 22,199  |          |   |        | 9,138  |   |   |         | 31,337  | 
|     |                 |        
|    
|     |                 | $       | 165,379 |         |          | $ | 44,321 |        |   | $ | 209,700 |        
|     |                 |        
|2003 |                 |         |         |         |          |   |        |        |   |   |         |        
|     | U.S. Federal    |         | $       | 93,329  |          |   | $      | 27,189 |   |   | $       | 120,518 | 
|     | Foreign         |         |         | 4,129   |          |   |        | (159   | ) |   |         | 3,970   | 
|     | State and local |         |         | 13,338  |          |   |        | 3,674  |   |   |         | 17,012  | 
|     |                 |        
|    
|     |                 | $       | 110,796 |         |          | $ | 30,704 |        |   | $ | 141,500 |        
|     |                 |        



|                                                                                                          |  |      |         |   |      |   |         |      |  |   |         |  
|--------------------------------------------------------------------------------------------------------- |  | ---- | ------- | - | ---- | - | ------- | ---- |  | - | ------- | -
|                                                                                                          |  | 2005 |         |   | 2004 |   |         | 2003 | 
|                                                                                                          | 
|U.S. Federal statutory taxes                                                                              |  | $    | 174,875 |   |      | $ | 189,851 |      |  | $ | 133,906 |  
|State and local taxes, net of U.S. Federal income tax
    benefit                                         |  |      | 16,368  |   |      |   | 20,369  |      |  |   | 11,058  |  
|Tax provided on foreign subsidiary earnings at less than the
    expected U.S. Federal statutory tax rate |  |      | (3,622  | ) |      |   | (1,373  | )    |  |   |        |  
|Sale of affiliate with higher tax basis                                                                   |  |      |        |   |      |   |        |      |  |   | (2,188  | )
|Other, net                                                                                                |  |      | (2,321  | ) |      |   | 853     |      |  |   | (1,276  | )
|                                                                                                          |  |     
|                                                                                                         
|Provision for income taxes                                                                                |  | $    | 185,300 |   |      | $ | 209,700 |      |  | $ | 141,500 |  
|                                                                                                          |  |     



|                                                 |  |      |         |  |      |   |         | 
|------------------------------------------------ |  | ---- | ------- |  | ---- | - | ------- | 
|                                                 |  | 2005 |         |  | 2004 |  
|                                                 | 
|Accrued postretirement benefits                  |  | $    | 63,129  |  |      | $ | 61,221  | 
|Other benefit obligations                        |  |      | 104,105 |  |      |   | 122,608 | 
|Accounts receivable                              |  |      | 21,762  |  |      |   | 18,939  | 
|State income tax loss carryforwards              |  |      | 9,185   |  |      |   | 10,753  | 
|Affiliate operations                             |  |      | 3,135   |  |      |   | 4,403   | 
|Other                                            |  |      | 20,335  |  |      |   | 19,866  | 
|                                                 |  |     
|                                                
|Deferred tax asset                               |  |      | 221,651 |  |      |   | 237,790 | 
|                                                 |  |     
|Property, plant and equipment                    |  |      | 153,445 |  |      |   | 173,101 | 
|Prepaid pension cost                             |  |      | 240,495 |  |      |   | 224,991 | 
|Unrealized gain on available-for-sale securities |  |      | 37,422  |  |      |   | 48,387  | 
|Goodwill and other intangibles                   |  |      | 175,517 |  |      |   | 164,138 | 
|                                                 |  |     
|                                                
|Deferred tax liability                           |  |      | 606,879 |  |      |   | 610,617 | 
|                                                 |  |     
|                                                
|Deferred income taxes                            |  | $    | 385,228 |  |      | $ | 372,827 | 
|                                                 |  |     









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##### Table of Contents









|             |  |   |       | 
|------------ |  | - | ----- | 
|2006         |  | $ | 4.3   | 
|2007         |  |   | 3.5   | 
|2008         |  |   | 3.8   | 
|2009         |  |   | 7.7   | 
|2010         |  |   | 8.6   | 
|2011 to 2023 |  |   | 152.3 | 
|             |  |   |      
|Total        |  | $ | 180.2 | 
|             |  |   |       | 

E. DEBT




|                                           |  |            |       |   |            |  |        |  
|------------------------------------------ |  | ---------- | ----- | - | ---------- |  | ------ | -
|                                           |  | January 1, |       |   | January 2, | 
|                                           |  | 2006       |       |   | 2005       | 
|                                           | 
|Commercial paper borrowings                |  | $          |      |   |            |  | $ 50.2 |  
|5.5% unsecured notes due February 15, 2009 |  |            | 399.2 |   |            |  | 398.9  |  
|4.0% notes due 2006 (£8.4 million)         |  |            | 14.4  |   |            |  | 16.1   |  
|Other indebtedness                         |  |            | 14.8  |   |            |  | 18.9   |  
|                                           |  |           
|                                          
|Total                                      |  |            | 428.4 |   |            |  | 484.1  |  
|Less current portion                       |  |            | (24.8 | ) |            |  | (58.2  | )
|                                           |  |           
|                                          
|Total long-term debt                       |  | $          | 403.6 |   |            |  | $425.9 |  
|                                           |  |           





364-day


364-day 364-day








F. REDEEMABLE PREFERRED STOCK














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##### Table of Contents



60-day




|   |                                              
|-- | ---------------------------------------------
|G. | CAPITAL STOCK, STOCK AWARDS AND STOCK OPTIONS

Capital Stock.




Stock Awards.


|                  |           |        |        |         |   |        |         |         |  |        |        |         |   |  |         |        |  |  |        |         |   |  |         |        | 
|----------------- | --------- | ------ | ------ | ------- | - | ------ | ------- | ------- |  | ------ | ------ | ------- | - |  | ------- | ------ |  |  | ------ | ------- | - |  | ------- | ------ | 
|                  |           | 2005   |        | 2004    |   | 2003   |        
|                  |           |        |        |         |   |        |        
|                  |           | Number |        | Average |   | Number |         | Average |  | Number |        | Average |  
|                  |           | of     |        | Award   |   | of     |         | Award   |  | of     |        | Award   |  
|                  |           | Shares |        | Price   |   | Shares |         | Price   |  | Shares |        | Price   |  
|                  |          
|Beginning of year |           |        | 28,001 |         |   |        | $644.51 |         |  |        | 29,845 |         |   |  | $643.89 |        |  |  | 27,625 |         |   |  | $536.74 |       
|                  | Awarded   |        |        | 16,550  |   |        |         | 940.96  |  |        |        | 200     |   |  |         | 973.88 |  |  |        | 15,990  |   |  |         | 734.01 | 
|                  | Vested    |        |        | (13,830 | ) |        |         | 609.87  |  |        |        | (561    | ) |  |         | 625.91 |  |  |        | (12,752 | ) |  |         | 523.60 | 
|                  | Forfeited |        |        | (1,141  | ) |        |         | 819.22  |  |        |        | (1,483  | ) |  |         | 683.58 |  |  |        | (1,018  | ) |  |         | 658.44 | 
|                  |           |       
|                 
|End of year       |           |        | 29,580 |         |   |        | $819.83 |         |  |        | 28,001 |         |   |  | $644.51 |        |  |  | 29,845 |         |   |  | $643.89 |       
|                  |           |       





Stock Options.




|                  |           |        |         |         |   |        |        |         |  |        |         |         |   |  |         |        |  |  |         |         |   |  |         |        | 
|----------------- | --------- | ------ | ------- | ------- | - | ------ | ------ | ------- |  | ------ | ------- | ------- | - |  | ------- | ------ |  |  | ------- | ------- | - |  | ------- | ------ | 
|                  |           | 2005   |         | 2004    |   | 2003   |       
|                  |           |        |         |         |   |        |       
|                  |           | Number |         | Average |   | Number |        | Average |  | Number |         | Average |  
|                  |           | of     |         | Option  |   | of     |        | Option  |  | of     |         | Option  |  
|                  |           | Shares |         | Price   |   | Shares |        | Price   |  | Shares |         | Price   |  
|                  |          
|Beginning of year |           |        | 122,250 |         |   | $      | 561.05 |         |  |        | 152,475 |         |   |  | $530.81 |        |  |  | 163,900 |         |   |  | $515.74 |       
|                  | Granted   |        |         | 4,500   |   |        |        | 762.50  |  |        |         | 4,000   |   |  |         | 953.50 |  |  |         | 5,000   |   |  |         | 803.70 | 
|                  | Exercised |        |         | (12,800 | ) |        |        | 533.24  |  |        |         | (33,225 | ) |  |         | 467.68 |  |  |         | (15,675 | ) |  |         | 450.87 | 
|                  | Forfeited |        |         | (625    | ) |        |        | 530.87  |  |        |         | (1,000  | ) |  |         | 621.38 |  |  |         | (750    | ) |  |         | 729.00 | 
|                  |           |       
|                 
|End of year       |           |        | 113,325 |         |   | $      | 572.36 |         |  |        | 122,250 |         |   |  | $561.05 |        |  |  | 152,475 |         |   |  | $530.81 |       
|                  |           |       



|                |         |             |  |             |        |          |  |             |     |          |  |   |        |  |  |  |        |  |  |   |        | 
|--------------- | ------- | ----------- |  | ----------- | ------ | -------- |  | ----------- | --- | -------- |  | - | ------ |  |  |  | ------ |  |  | - | ------ | 
|                |         |             |  | Weighted    |        |          |  |             |     |         
|                |         |             |  | Average     |        | Weighted |  |             |     | Weighted | 
|                |         | Number      |  | Remaining   |        | Average  |  | Number      |     | Average  | 
|Range of        |         | Outstanding |  | Contractual |        | Exercise |  | Exercisable |     | Exercise | 
|Exercise Prices |         | at 1/1/2006 |  | Life (yrs.) |        | Price    |  | at 1/1/2006 |     | Price    | 
|                |        
|$               | 344     |             |  |             | 3,300  |          |  |             | 1.0 |          |  | $ | 343.94 |  |  |  | 3,300  |  |  | $ | 343.94 | 
|                | 472484 |             |  |             | 12,125 |          |  |             | 2.7 |          |  |   | 473.70 |  |  |  | 12,125 |  |  |   | 473.70 | 
|                | 500596 |             |  |             | 74,900 |          |  |             | 4.8 |          |  |   | 531.42 |  |  |  | 74,900 |  |  |   | 531.42 | 
|                | 693     |             |  |             | 500    |          |  |             | 8.0 |          |  |   | 692.51 |  |  |  | 250    |  |  |   | 692.51 | 
|                | 729763 |             |  |             | 14,000 |          |  |             | 8.0 |          |  |   | 739.77 |  |  |  | 7,125  |  |  |   | 729.00 | 
|                | 816     |             |  |             | 4,500  |          |  |             | 8.0 |          |  |   | 816.05 |  |  |  | 2,250  |  |  |   | 816.05 | 
|                | 954     |             |  |             | 4,000  |          |  |             | 9.0 |          |  |   | 953.50 |  |  |  | 1,000  |  |  |   | 953.50 | 











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##### Table of Contents





|                      |  |      |       |   |      |  |       |      |  |  |       |  
|--------------------- |  | ---- | ----- | - | ---- |  | ----- | ---- |  |  | ----- | -
|                      |  | 2005 |       |   | 2004 |  |       | 2003 | 
|                      | 
|Expected life (years) |  |      | 7     |   |      |  | 7     |      |  |  | 7     |  
|Interest rate         |  |      | 4.49  | % |      |  | 3.85  | %    |  |  | 4.38  | %
|Volatility            |  |      | 19.08 | % |      |  | 20.24 | %    |  |  | 20.43 | %
|Dividend yield        |  |      | 0.97  | % |      |  | 0.73  | %    |  |  | 0.71  | %













|                  |           |        |         |         |        |        |         |          |        |        |         |       |  |  |         |   |  |  |         |         |   |   |        |          | 
|----------------- | --------- | ------ | ------- | ------- | ------ | ------ | ------- | -------- | ------ | ------ | ------- | ----- |  |  | ------- | - |  |  | ------- | ------- | - | - | ------ | -------- | 
|                  |           | 2005   |         | 2004    |        | 2003   |        
|                  |           |        |         |         |        |        |        
|                  | Number    |        | Average |         | Number |        | Average |          | Number |        | Average |      
|                  | of        |        | Option  |         | of     |        | Option  |          | of     |        | Option  |      
|                  |           | Shares |         | Price   |        | Shares |         | Price    |        | Shares |         | Price | 
|                  |          
|Beginning of Year |           |        | 68,000  |         |        | $      | 596.17  |          |        |        | 68,000  |       |  |  | $596.17 |   |  |  | 147,463 |         |   | $ | 311.24 |         
|                  | Granted   |        |         | 10,582  |        |        |         | 2,080.00 |        |        |         |      |  |  |         |  |  |  |         | 16,037  |   |   |        | 1,546.23 | 
|                  | Exercised |        |         | (16,153 | )      |        |         | 225.14   |        |        |         |      |  |  |         |  |  |  |         | (94,652 | ) |   |        | 303.66   | 
|                  | Forfeited |        |         | (200    | )      |        |         | 652.00   |        |        |         |      |  |  |         |  |  |  |         | (848    | ) |   |        | 382.12   | 
|                  |           |       
|                 
|End of year       |           |        | 62,229  |         |        | $      | 944.63  |          |        |        | 68,000  |       |  |  | $596.17 |   |  |  | 68,000  |         |   | $ | 596.17 |         
|                  |           |       



|                |       |        |             |  |                  |                       |  |        |             |  |  |  |        | 
|--------------- | ----- | ------ | ----------- |  | ---------------- | --------------------- |  | ------ | ----------- |  |  |  | ------ | 
|                |       | Number |             |  | Weighted Average |                       |  | Number |             | 
|Range of        |       |        | Outstanding |  |                  | Remaining Contractual |  |        | Exercisable |  | 
|Exercise Prices |       |        | at 1/1/06   |  |                  | Life (yrs.)           |  |        | at 1/1/06   |  | 
|                |      
|$               | 190   |        |             |  | 16,650           |                       |  |        | 2.0         |  |  |  | 16,650 | 
|                | 375   |        |             |  | 338              |                       |  |        | 4.5         |  |  |  | 338    | 
|                | 526   |        |             |  | 18,672           |                       |  |        | 5.5         |  |  |  | 15,139 | 
|                | 652   |        |             |  | 2,000            |                       |  |        | 6.0         |  |  |  | 1,200  | 
|                | 861   |        |             |  | 487              |                       |  |        | 6.0         |  |  |  | 204    | 
|                | 1,625 |        |             |  | 13,500           |                       |  |        | 6.0         |  |  |  | 5,400  | 
|                | 2,080 |        |             |  | 10,582           |                       |  |        | 6.0         |  |  |  |       | 

Average Number of Shares Outstanding.


|     |  |                  |           |               |  |                  |        |  |  |  |           | 
|---- |  | ---------------- | --------- | ------------- |  | ---------------- | ------ |  |  |  | --------- | 
|     |  | Basic            |           | Dilutive      |  | Diluted          |       
|     |  | Weighted Average |           | Effect of     |  | Weighted Average |       
|     |  | Shares           |           | Stock Options |  | Shares           |       
|     | 
|2005 |  |                  | 9,593,837 |               |  |                  | 22,060 |  |  |  | 9,615,897 | 
|2004 |  |                  | 9,563,314 |               |  |                  | 28,311 |  |  |  | 9,591,625 | 
|2003 |  |                  | 9,530,209 |               |  |                  | 24,454 |  |  |  | 9,554,663 | 











---



##### Table of Contents





|   |                                        
|-- | ---------------------------------------
|H. | PENSIONS AND OTHER POSTRETIREMENT PLANS











|                                          |  |               |           |   |                      |   |           |      |  |   |          |   |  |   |          |  
|----------------------------------------- |  | ------------- | --------- | - | -------------------- | - | --------- | ---- |  | - | -------- | - |  | - | -------- | -
|                                          |  | Pension Plans |           |   | Postretirement Plans |  
|                                          |  |               |           |   |                      |  
|                                          |  | 2005          |           |   | 2004                 |   |           | 2005 |  |   | 2004     |  
|                                          | 
|Change in Benefit Obligation              |  |               |           |   |                      |   |           |      |  |   |          |   |  |   |          |  
|Benefit obligation at beginning of year   |  | $             | 689,141   |   |                      | $ | 625,774   |      |  | $ | 132,540  |   |  | $ | 120,444  |  
|Service cost                              |  |               | 27,161    |   |                      |   | 22,896    |      |  |   | 6,026    |   |  |   | 5,285    |  
|Interest cost                             |  |               | 39,989    |   |                      |   | 37,153    |      |  |   | 7,434    |   |  |   | 7,355    |  
|Amendments                                |  |               | 3,751     |   |                      |   | 218       |      |  |   |         |   |  |   |         |  
|Actuarial loss                            |  |               | 15,272    |   |                      |   | 46,655    |      |  |   | 1,860    |   |  |   | 5,764    |  
|Benefits paid                             |  |               | (26,441   | ) |                      |   | (43,555   | )    |  |   | (6,391   | ) |  |   | (6,308   | )
|                                          |  |              
|                                         
|Benefit obligation at end of year         |  | $             | 748,873   |   |                      | $ | 689,141   |      |  | $ | 141,469  |   |  | $ | 132,540  |  
|                                          |  |              
|Change in Plan Assets                     |  |               |           |   |                      |   |           |      |  |   |          |   |  |   |          |  
|Fair value of assets at beginning of year |  | $             | 1,588,213 |   |                      | $ | 1,564,966 |      |  | $ |         |   |  | $ |         |  
|Actual return on plan assets              |  |               | 121,493   |   |                      |   | 66,802    |      |  |   |         |   |  |   |         |  
|Employer contributions                    |  |               |          |   |                      |   |          |      |  |   | 6,391    |   |  |   | 6,308    |  
|Benefits paid                             |  |               | (26,441   | ) |                      |   | (43,555   | )    |  |   | (6,391   | ) |  |   | (6,308   | )
|                                          |  |              
|                                         
|Fair value of assets at end of year       |  | $             | 1,683,265 |   |                      | $ | 1,588,213 |      |  | $ |         |   |  | $ |         |  
|                                          |  |              
|                                         
|Funded status                             |  | $             | 934,392   |   |                      | $ | 899,072   |      |  | $ | (141,469 | ) |  | $ | (132,540 | )
|Unrecognized transition asset             |  |               | (249      | ) |                      |   | (355      | )    |  |   |         |   |  |   |         |  
|Unrecognized prior service cost           |  |               | 36,233    |   |                      |   | 38,389    |      |  |   | (7,413   | ) |  |   | (8,001   | )
|Unrecognized actuarial gain               |  |               | (376,907  | ) |                      |   | (380,359  | )    |  |   | (2,027   | ) |  |   | (4,949   | )
|                                          |  |              
|                                         
|Net prepaid (accrued) cost                |  | $             | 593,469   |   |                      | $ | 556,747   |      |  | $ | (150,909 | ) |  | $ | (145,490 | )
|                                          |  |              





|                              |  |               |       |  |                      |  |       |      |  |  |       |  |  |  |       | 
|----------------------------- |  | ------------- | ----- |  | -------------------- |  | ----- | ---- |  |  | ----- |  |  |  | ----- | 
|                              |  | Pension Plans |       |  | Postretirement Plans | 
|                              |  |               |       |  |                      | 
|                              |  | 2005          |       |  | 2004                 |  |       | 2005 |  |  | 2004  | 
|                              | 
|Discount rate                 |  |               | 5.75% |  |                      |  | 5.75% |      |  |  | 5.60% |  |  |  | 5.75% | 
|Rate of compensation increase |  |               | 4.0%  |  |                      |  | 4.0%  |      |  |  |      |  |  |  |      | 





|                                  |  |          |        |  |          |   |         |  
|--------------------------------- |  | -------- | ------ |  | -------- | - | ------- | -
|                                  |  | 1%       |        |  | 1%       |  
|                                  |  | Increase |        |  | Decrease |  
|                                  | 
|Benefit obligation at end of year |  | $        | 21,471 |  |          | $ | (20,075 | )
|Service cost plus interest cost   |  | $        | 2,150  |  |          | $ | (2,085  | )





|          |  |               |       |                |       |   |      | 
|--------- |  | ------------- | ----- | -------------- | ----- | - | ---- | 
|          |  |               |       | Postretirement |      
|          |  | Pension Plans |       |                | Plans |  
|          |  |               |       |                |       |  
|2006      |  | $             | 28.5  |                |       | $ | 6.9  | 
|2007      |  | $             | 30.1  |                |       | $ | 7.4  | 
|2008      |  | $             | 32.3  |                |       | $ | 8.0  | 
|2009      |  | $             | 34.4  |                |       | $ | 8.6  | 
|2010      |  | $             | 36.6  |                |       | $ | 9.4  | 
|2011-2015 |  | $             | 230.8 |                |       | $ | 55.7 | 



|             |  |                        |       |  |                 |  |        |  |  |   |       |  |  |  |        | 
|------------ |  | ---------------------- | ----- |  | --------------- |  | ------ |  |  | - | ----- |  |  |  | ------ | 
|             |  | Plan Asset Allocations |      
|             |  |                        |      
|             |  | January 1, 2006        |       |  | January 2, 2005 | 
|             | 
|Equities     |  | $                      | 1,427 |  |                 |  | 84.8%  |  |  | $ | 1,362 |  |  |  | 85.8%  | 
|Fixed Income |  |                        | 256   |  |                 |  | 15.2%  |  |  |   | 226   |  |  |  | 14.2%  | 
|             |  |                       
|            
|Total        |  | $                      | 1,683 |  |                 |  | 100.0% |  |  | $ | 1,588 |  |  |  | 100.0% | 
|             |  |                       













---



##### Table of Contents







|                                         |  |               |          |   |                      |   |         |      |  |   |         |   |  |      |        |   |      |   |        |   |  |   |        |  
|---------------------------------------- |  | ------------- | -------- | - | -------------------- | - | ------- | ---- |  | - | ------- | - |  | ---- | ------ | - | ---- | - | ------ | - |  | - | ------ | -
|                                         |  | Pension Plans |          |   | Postretirement Plans |  
|                                         |  |               |          |   |                      |  
|                                         |  | 2005          |          |   | 2004                 |   |         | 2003 |  |   | 2005    |   |  | 2004 |        |   | 2003 |  
|                                         | 
|Service cost                             |  | $             | 27,161   |   |                      | $ | 22,896  |      |  | $ | 19,965  |   |  | $    | 6,026  |   |      | $ | 5,285  |   |  | $ | 5,164  |  
|Interest cost                            |  |               | 39,989   |   |                      |   | 37,153  |      |  |   | 33,696  |   |  |      | 7,434  |   |      |   | 7,355  |   |  |   | 7,395  |  
|Expected return on assets                |  |               | (104,589 | ) |                      |   | (97,702 | )    |  |   | (96,116 | ) |  |      |       |   |      |   |       |   |  |   |       |  
|Amortization of transition asset         |  |               | (106     | ) |                      |   | (1,086  | )    |  |   | (2,189  | ) |  |      |       |   |      |   |       |   |  |   |       |  
|Amortization of prior service cost       |  |               | 4,716    |   |                      |   | 4,530   |      |  |   | 4,172   |   |  |      | (588   | ) |      |   | (588   | ) |  |   | (360   | )
|Recognized actuarial gain                |  |               | (5,085   | ) |                      |   | (7,745  | )    |  |   | (14,665 | ) |  |      | (1,061 | ) |      |   | (995   | ) |  |   | (1,675 | )
|                                         |  |              
|                                        
|Net periodic (benefit) cost for the year |  |               | (37,914  | ) |                      |   | (41,954 | )    |  |   | (55,137 | ) |  |      | 11,811 |   |      |   | 11,057 |   |  |   | 10,524 |  
|Early retirement programs expense        |  |               | 1,192    |   |                      |   | 132     |      |  |   | 34,135  |   |  |      |       |   |      |   |       |   |  |   |       |  
|Curtailment gain                         |  |               |         |   |                      |   |        |      |  |   |        |   |  |      |       |   |      |   |       |   |  |   | (634   | )
|                                         |  |              
|                                        
|Total (benefit) cost for the year        |  | $             | (36,722  | ) |                      | $ | (41,822 | )    |  | $ | (21,002 | ) |  | $    | 11,811 |   |      | $ | 11,057 |   |  | $ | 9,890  |  
|                                         |  |              



|                               |  |               |       |  |                      |  |       |      |  |  |       |  |  |      |       |  |      |  |       |  |  |  |       | 
|------------------------------ |  | ------------- | ----- |  | -------------------- |  | ----- | ---- |  |  | ----- |  |  | ---- | ----- |  | ---- |  | ----- |  |  |  | ----- | 
|                               |  | Pension Plans |       |  | Postretirement Plans | 
|                               |  |               |       |  |                      | 
|                               |  | 2005          |       |  | 2004                 |  |       | 2003 |  |  | 2005  |  |  | 2004 |       |  | 2003 | 
|                               | 
|Discount rate                  |  |               | 5.75% |  |                      |  | 6.25% |      |  |  | 6.75% |  |  |      | 5.75% |  |      |  | 6.25% |  |  |  | 6.75% | 
|Expected return on plan assets |  |               | 7.5%  |  |                      |  | 7.5%  |      |  |  | 7.5%  |  |  |      |      |  |      |  |      |  |  |  |      | 
|Rate of compensation increase  |  |               | 4.0%  |  |                      |  | 4.0%  |      |  |  | 4.0%  |  |  |      |      |  |      |  |      |  |  |  |      | 











|   |                            
|-- | ---------------------------
|I. | LEASE AND OTHER COMMITMENTS





|           |  |   |         | 
|---------- |  | - | ------- | 
|2006       |  | $ | 95,226  | 
|2007       |  |   | 91,109  | 
|2008       |  |   | 82,649  | 
|2009       |  |   | 71,907  | 
|2010       |  |   | 61,703  | 
|Thereafter |  |   | 185,392 | 
|           |  |   |        
|          
|           |  | $ | 587,986 | 
|           |  |   |        







J. ACQUISITIONS, EXCHANGES AND DISPOSITIONS
















---



##### Table of Contents















K. GOODWILL AND OTHER INTANGIBLE ASSETS








|      |                                    |       |   |             |              |  |   |         |  |  |   |           | 
|----- | ---------------------------------- | ----- | - | ----------- | ------------ |  | - | ------- |  |  | - | --------- | 
|      |                                    |       |   | Accumulated |              |  |  
|      |                                    | Gross |   |             | Amortization |  |   | Net     | 
|      |                                   
|2005: |                                    |       |   |             |              |  |   |         |  |  |   |          
|      | Goodwill                           |       | $ | 1,423,972   |              |  | $ | 298,402 |  |  | $ | 1,125,570 | 
|      | Indefinite-lived intangible assets |       |   | 658,498     |              |  |   | 163,806 |  |  |   | 494,692   | 
|      | Amortized intangible assets        |       |   | 42,434      |              |  |   | 19,620  |  |  |   | 22,814    | 
|      |                                    |      
|      |                                    |       | $ | 2,124,904   |              |  | $ | 481,828 |  |  | $ | 1,643,076 | 
|      |                                    |      
|2004: |                                    |       |   |             |              |  |   |         |  |  |   |          
|      | Goodwill                           |       | $ | 1,321,542   |              |  | $ | 298,402 |  |  | $ | 1,023,140 | 
|      | Indefinite-lived intangible assets |       |   | 656,998     |              |  |   | 163,806 |  |  |   | 493,192   | 
|      | Amortized intangible assets        |       |   | 20,021      |              |  |   | 12,142  |  |  |   | 7,879     | 
|      |                                    |      
|      |                                    |       | $ | 1,998,561   |              |  | $ | 474,350 |  |  | $ | 1,524,211 | 
|      |                                    |      



|                                        |                                |            |   |        |              |  |   |            |  |  |            |        |  |           |   |         |       |  |   |         |   |  |   |           |  
|--------------------------------------- | ------------------------------ | ---------- | - | ------ | ------------ |  | - | ---------- |  |  | ---------- | ------ |  | --------- | - | ------- | ----- |  | - | ------- | - |  | - | --------- | -
|                                        |                                | Newspaper  |   |        | Television   |  |   | Magazine   |  |  | Cable      |        |  |           |   |        
|                                        |                                | Publishing |   |        | Broadcasting |  |   | Publishing |  |  | Television |        |  | Education |   |         | Total | 
|                                        |                               
|Goodwill, Net                           |                                |            |   |        |              |  |   |            |  |  |            |        |  |           |   |         |       |  |   |         |   |  |   |          
|                                        | Beginning of year              |            | $ | 72,770 |              |  | $ | 203,165    |  |  | $          | 69,556 |  |           | $ | 85,666  |       |  | $ | 591,983 |   |  | $ | 1,023,140 |  
|                                        | Acquisitions                   |            |   | 7,881  |              |  |   |            |  |  |            |        |  |           |   |         |       |  |   | 111,623 |   |  |   | 119,504   |  
|                                        | Foreign currency exchange rate |            |   |        |              |  |   |            |  |  |            |        |  |           |   |         |       |  |   | (17,074 | ) |  |   | (17,074   | )
|                                        |                                |           
|                                       
|                                        | End of year                    |            | $ | 80,651 |              |  | $ | 203,165    |  |  | $          | 69,556 |  |           | $ | 85,666  |       |  | $ | 686,532 |   |  | $ | 1,125,570 |  
|                                        |                                |           
|Indefinite-Lived Intangible Assets, Net |                                |            |   |        |              |  |   |            |  |  |            |        |  |           |   |         |       |  |   |         |   |  |   |          
|                                        | Beginning of year              |            |   |        |              |  |   |            |  |  |            |        |  |           | $ | 486,330 |       |  | $ | 6,862   |   |  | $ | 493,192   |  
|                                        | Acquisitions                   |            |   |        |              |  |   |            |  |  |            |        |  |           |   |         |       |  |   | 1,500   |   |  |   | 1,500     |  
|                                        |                                |           
|                                       
|                                        | End of year                    |            |   |        |              |  |   |            |  |  |            |        |  |           | $ | 486,330 |       |  | $ | 8,362   |   |  | $ | 494,692   |  
|                                        |                                |           
|Amortized Intangible Assets, Net        |                                |            |   |        |              |  |   |            |  |  |            |        |  |           |   |         |       |  |   |         |   |  |   |          
|                                        | Beginning of year              |            | $ | 118    |              |  |   |            |  |  |            |        |  |           | $ | 2,474   |       |  | $ | 5,287   |   |  | $ | 7,879     |  
|                                        | Acquisitions                   |            |   | 7,677  |              |  |   |            |  |  |            |        |  |           |   |         |       |  |   | 14,989  |   |  |   | 22,666    |  
|                                        | Foreign currency exchange rate |            |   |        |              |  |   |            |  |  |            |        |  |           |   |         |       |  |   | (253    | ) |  |   | (253      | )
|                                        | Amortization                   |            |   | (1,119 | )            |  |   |            |  |  |            |        |  |           |   | (764    | )     |  |   | (5,595  | ) |  |   | (7,478    | )
|                                        |                                |           
|                                       
|                                        | End of year                    |            | $ | 6,676  |              |  |   |            |  |  |            |        |  |           | $ | 1,710   |       |  | $ | 14,428  |   |  | $ | 22,814    |  
|                                        |                                |           









---



##### Table of Contents





|                                        |                                |            |   |        |              |  |   |            |  |  |            |        |  |           |   |         |       |  |   |         |   |  |   |           |  
|--------------------------------------- | ------------------------------ | ---------- | - | ------ | ------------ |  | - | ---------- |  |  | ---------- | ------ |  | --------- | - | ------- | ----- |  | - | ------- | - |  | - | --------- | -
|                                        |                                | Newspaper  |   |        | Television   |  |   | Magazine   |  |  | Cable      |        |  |           |   |        
|                                        |                                | Publishing |   |        | Broadcasting |  |   | Publishing |  |  | Television |        |  | Education |   |         | Total | 
|                                        |                               
|Goodwill, Net                           |                                |            |   |        |              |  |   |            |  |  |            |        |  |           |   |         |       |  |   |         |   |  |   |          
|                                        | Beginning of year              |            | $ | 71,277 |              |  | $ | 203,165    |  |  | $          | 69,556 |  |           | $ | 85,666  |       |  | $ | 536,030 |   |  | $ | 965,694   |  
|                                        | Acquisitions                   |            |   | 1,493  |              |  |   |            |  |  |            |        |  |           |   |         |       |  |   | 44,143  |   |  |   | 45,636    |  
|                                        | Foreign currency exchange rate |            |   |        |              |  |   |            |  |  |            |        |  |           |   |         |       |  |   | 11,810  |   |  |   | 11,810    |  
|                                        |                                |           
|                                       
|                                        | End of year                    |            | $ | 72,770 |              |  | $ | 203,165    |  |  | $          | 69,556 |  |           | $ | 85,666  |       |  | $ | 591,983 |   |  | $ | 1,023,140 |  
|                                        |                                |           
|Indefinite-Lived Intangible Assets, Net |                                |            |   |        |              |  |   |            |  |  |            |        |  |           |   |         |       |  |   |         |   |  |   |          
|                                        | Beginning of year              |            |   |        |              |  |   |            |  |  |            |        |  |           | $ | 484,556 |       |  | $ | 2,100   |   |  | $ | 486,656   |  
|                                        | Acquisitions                   |            |   |        |              |  |   |            |  |  |            |        |  |           |   | 1,774   |       |  |   | 4,762   |   |  |   | 6,536     |  
|                                        |                                |           
|                                       
|                                        | End of year                    |            |   |        |              |  |   |            |  |  |            |        |  |           | $ | 486,330 |       |  | $ | 6,862   |   |  | $ | 493,192   |  
|                                        |                                |           
|Amortized Intangible Assets, Net        |                                |            |   |        |              |  |   |            |  |  |            |        |  |           |   |         |       |  |   |         |   |  |   |          
|                                        | Beginning of year              |            | $ | 30     |              |  |   |            |  |  |            |        |  |           | $ | 1,081   |       |  | $ | 4,115   |   |  | $ | 5,226     |  
|                                        | Acquisitions                   |            |   | 107    |              |  |   |            |  |  |            |        |  |           |   | 2,045   |       |  |   | 9,845   |   |  |   | 11,997    |  
|                                        | Foreign currency exchange rate |            |   |        |              |  |   |            |  |  |            |        |  |           |   |         |       |  |   | (10     | ) |  |   | (10       | )
|                                        | Amortization                   |            |   | (19    | )            |  |   |            |  |  |            |        |  |           |   | (652    | )     |  |   | (8,663  | ) |  |   | (9,334    | )
|                                        |                                |           
|                                       
|                                        | End of year                    |            | $ | 118    |              |  |   |            |  |  |            |        |  |           | $ | 2,474   |       |  | $ | 5,287   |   |  | $ | 7,879     |  
|                                        |                                |           

L. OTHER NON-OPERATING INCOME (EXPENSE)






|                                                            |       |      |      |     |      |   |      |      |  |   |      |      | 
|----------------------------------------------------------- | ----- | ---- | ---- | --- | ---- | - | ---- | ---- |  | - | ---- | ---- | 
|                                                            |       | 2005 |      |     | 2004 |   |      | 2003 | 
|                                                            |      
|Gain on sales of marketable securities                      |       | $    | 12.7 |     |      | $ |     |      |  | $ |     |     
|Gain on sale of non-operating land                          |       |      | 5.1  |     |      |   |     |      |  |   |     |     
|Foreign currency (losses) gains, net                        |       |      | (8.1 | )   |      |   | 5.5  |      |  |   | 4.2  |     
|Impairment write-downs on cost method and other investments |       |      | (1.5 | )   |      |   | (0.7 | )    |  |   | (1.3 | )   
|Gain on sale of interest in IHT                             |       |      |     |     |      |   |     |      |  |   | 49.8 |     
|Gain on sale or exchange of cable system businesses         |       |      |     |     |      |   | 0.5  |      |  |   |     |     
|Other                                                       |       |      | 0.8  |     |      |   | 2.8  |      |  |   | 2.7  |     
|                                                            |       |     
|                                                           
|                                                            | Total |      | $    | 9.0 |      |   | $    | 8.1  |  |   | $    | 55.4 | 
|                                                            |       |     

M. CONTINGENCIES AND LOSSES






30-day


N. BUSINESS SEGMENTS
















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##### Table of Contents



|               |                                               |                            |   |              |   |            |   |            |  |           |   |           |  |              |   |           |   |  |   |           |   |  |   |         |   |  |   |           |           | 
|-------------- | --------------------------------------------- | -------------------------- | - | ------------ | - | ---------- | - | ---------- |  | --------- | - | --------- |  | ------------ | - | --------- | - |  | - | --------- | - |  | - | ------- | - |  | - | --------- | --------- | 
|               |                                               | Newspaper                  |   | Television   |   | Magazine   |   | Cable      |  |           |   | Corporate |  |             
|(in thousands) |                                               | Publishing                 |   | Broadcasting |   | Publishing |   | Television |  | Education |   | Office    |  | Consolidated
|              
|2005           |                                               |                            |   |              |   |            |   |            |  |           |   |           |  |              |   |           |   |  |   |           |   |  |   |         |   |  |   |          
|               | Operating revenues                            |                            | $ | 957,082      |   |            | $ | 331,817    |  |           | $ | 344,894   |  |              | $ | 507,700   |   |  | $ | 1,412,394 |   |  | $ |        |   |  | $ | 3,553,887 |          
|               | Income (loss) from operations                 |                            | $ | 125,359      |   |            | $ | 142,478    |  |           | $ | 45,122    |  |              | $ | 76,720    |   |  | $ | 157,835   |   |  | $ | (32,600 | ) |  | $ | 514,914   |          
|               | Equity in losses of affiliates                |                            |   |              |   |            |   |            |  |           |   |           |  |              |   |           |   |  |   |           |   |  |   |         |   |  |   | (881      | )        
|               | Interest expense, net                         |                            |   |              |   |            |   |            |  |           |   |           |  |              |   |           |   |  |   |           |   |  |   |         |   |  |   | (23,369   | )        
|               | Other income, net                             |                            |   |              |   |            |   |            |  |           |   |           |  |              |   |           |   |  |   |           |   |  |   |         |   |  |   | 8,980     |          
|               |                                               |                           
|              
|               |                                               | Income before income taxes |   |              |   |            |   |            |  |           |   |           |  |              |   |           |   |  |   |           |   |  |   |         |   |  |   | $         | 499,644   | 
|               |                                               |                           
|               | Identifiable assets                           |                            | $ | 702,221      |   |            | $ | 420,154    |  |           | $ | 594,937   |  |              | $ | 1,122,654 |   |  | $ | 1,257,952 |   |  | $ | 90,159  |   |  | $ | 4,188,077 |          
|               | Investments in marketable equity securities   |                            |   |              |   |            |   |            |  |           |   |           |  |              |   |           |   |  |   |           |   |  |   |         |   |  |   | 329,921   |          
|               | Investments in affiliates                     |                            |   |              |   |            |   |            |  |           |   |           |  |              |   |           |   |  |   |           |   |  |   |         |   |  |   | 66,775    |          
|               |                                               |                           
|              
|               |                                               | Total assets               |   |              |   |            |   |            |  |           |   |           |  |              |   |           |   |  |   |           |   |  |   |         |   |  |   | $         | 4,584,773 | 
|               |                                               |                           
|               | Depreciation of property, plant and equipment |                            | $ | 36,556       |   |            | $ | 10,202     |  |           | $ | 2,801     |  |              | $ | 100,031   |   |  | $ | 39,453    |   |  | $ | 1,500   |   |  | $ | 190,543   |          
|               | Amortization expense                          |                            | $ | 1,119        |   |            | $ |           |  |           | $ |          |  |              | $ | 764       |   |  | $ | 5,595     |   |  | $ |        |   |  | $ | 7,478     |          
|               | Pension credit (expense)                      |                            | $ | (784         | ) |            | $ | 2,939      |  |           | $ | 38,184    |  |              | $ | (1,252    | ) |  | $ | (2,365    | ) |  | $ |        |   |  | $ | 36,722    |          
|               | Kaplan stock-based incentive compensation     |                            |   |              |   |            |   |            |  |           |   |           |  |              |   |           |   |  | $ | 3,000     |   |  |   |         |   |  | $ | 3,000     |          
|               | Capital expenditures                          |                            | $ | 33,276       |   |            | $ | 8,557      |  |           | $ | 660       |  |              | $ | 111,331   |   |  | $ | 84,257    |   |  | $ | 268     |   |  | $ | 238,349   |          
|2004           |                                               |                            |   |              |   |            |   |            |  |           |   |           |  |              |   |           |   |  |   |           |   |  |   |         |   |  |   |          
|               | Operating revenues                            |                            | $ | 938,066      |   |            | $ | 361,716    |  |           | $ | 366,119   |  |              | $ | 499,312   |   |  | $ | 1,134,891 |   |  | $ |        |   |  | $ | 3,300,104 |          
|               | Income (loss) from operations                 |                            | $ | 143,086      |   |            | $ | 174,176    |  |           | $ | 52,921    |  |              | $ | 104,171   |   |  | $ | 121,455   |   |  | $ | (32,803 | ) |  | $ | 563,006   |          
|               | Equity in losses of affiliates                |                            |   |              |   |            |   |            |  |           |   |           |  |              |   |           |   |  |   |           |   |  |   |         |   |  |   | (2,291    | )        
|               | Interest expense, net                         |                            |   |              |   |            |   |            |  |           |   |           |  |              |   |           |   |  |   |           |   |  |   |         |   |  |   | (26,410   | )        
|               | Other income, net                             |                            |   |              |   |            |   |            |  |           |   |           |  |              |   |           |   |  |   |           |   |  |   |         |   |  |   | 8,127     |          
|               |                                               |                           
|              
|               |                                               | Income before income taxes |   |              |   |            |   |            |  |           |   |           |  |              |   |           |   |  |   |           |   |  |   |         |   |  |   | $         | 542,432   | 
|               |                                               |                           
|               | Identifiable assets                           |                            | $ | 685,744      |   |            | $ | 409,574    |  |           | $ | 581,601   |  |              | $ | 1,112,935 |   |  | $ | 1,033,810 |   |  | $ | 13,551  |   |  | $ | 3,837,215 |          
|               | Investments in marketable equity securities   |                            |   |              |   |            |   |            |  |           |   |           |  |              |   |           |   |  |   |           |   |  |   |         |   |  |   | 409,736   |          
|               | Investments in affiliates                     |                            |   |              |   |            |   |            |  |           |   |           |  |              |   |           |   |  |   |           |   |  |   |         |   |  |   | 61,814    |          
|               |                                               |                           
|              
|               |                                               | Total assets               |   |              |   |            |   |            |  |           |   |           |  |              |   |           |   |  |   |           |   |  |   |         |   |  |   | $         | 4,308,765 | 
|               |                                               |                           
|               | Depreciation of property, plant and equipment |                            | $ | 36,862       |   |            | $ | 11,093     |  |           | $ | 3,255     |  |              | $ | 94,974    |   |  | $ | 29,154    |   |  | $ |        |   |  | $ | 175,338   |          
|               | Amortization expense                          |                            | $ | 19           |   |            | $ |           |  |           | $ |          |  |              | $ | 652       |   |  | $ | 8,663     |   |  | $ |        |   |  | $ | 9,334     |          
|               | Pension credit (expense)                      |                            | $ | 3,598        |   |            | $ | 3,172      |  |           | $ | 37,613    |  |              | $ | (1,030    | ) |  | $ | (1,531    | ) |  | $ |        |   |  | $ | 41,822    |          
|               | Kaplan stock-based incentive compensation     |                            |   |              |   |            |   |            |  |           |   |           |  |              |   |           |   |  | $ | 32,546    |   |  |   |         |   |  | $ | 32,546    |          
|               | Capital expenditures                          |                            | $ | 27,959       |   |            | $ | 6,967      |  |           | $ | 1,499     |  |              | $ | 78,873    |   |  | $ | 85,221    |   |  | $ | 4,113   |   |  | $ | 204,632   |          
|2003           |                                               |                            |   |              |   |            |   |            |  |           |   |           |  |              |   |           |   |  |   |           |   |  |   |         |   |  |   |          
|               | Operating revenues                            |                            | $ | 872,754      |   |            | $ | 315,126    |  |           | $ | 353,555   |  |              | $ | 459,399   |   |  | $ | 838,077   |   |  | $ |        |   |  | $ | 2,838,911 |          
|               | Income (loss) from
    operations(1)          |                            | $ | 134,197      |   |            | $ | 139,744    |  |           | $ | 43,504    |  |              | $ | 88,392    |   |  | $ | (11,709   | ) |  | $ | (30,308 | ) |  | $ | 363,820   |          
|               | Equity in losses of affiliates                |                            |   |              |   |            |   |            |  |           |   |           |  |              |   |           |   |  |   |           |   |  |   |         |   |  |   | (9,766    | )        
|               | Interest expense, net                         |                            |   |              |   |            |   |            |  |           |   |           |  |              |   |           |   |  |   |           |   |  |   |         |   |  |   | (26,851   | )        
|               | Other income, net                             |                            |   |              |   |            |   |            |  |           |   |           |  |              |   |           |   |  |   |           |   |  |   |         |   |  |   | 55,385    |          
|               |                                               |                           
|              
|               |                                               | Income before income taxes |   |              |   |            |   |            |  |           |   |           |  |              |   |           |   |  |   |           |   |  |   |         |   |  |   | $         | 382,588   | 
|               |                                               |                           
|               | Identifiable assets                           |                            | $ | 684,944      |   |            | $ | 411,434    |  |           | $ | 532,867   |  |              | $ | 1,130,410 |   |  | $ | 870,850   |   |  | $ | 10,023  |   |  | $ | 3,640,528 |          
|               | Investments in marketable equity securities   |                            |   |              |   |            |   |            |  |           |   |           |  |              |   |           |   |  |   |           |   |  |   |         |   |  |   | 247,958   |          
|               | Investments in affiliates                     |                            |   |              |   |            |   |            |  |           |   |           |  |              |   |           |   |  |   |           |   |  |   |         |   |  |   | 61,312    |          
|               |                                               |                           
|              
|               |                                               | Total assets               |   |              |   |            |   |            |  |           |   |           |  |              |   |           |   |  |   |           |   |  |   |         |   |  |   | $         | 3,949,798 | 
|               |                                               |                           
|               | Depreciation of property, plant and equipment |                            | $ | 41,914       |   |            | $ | 11,414     |  |           | $ | 3,727     |  |              | $ | 92,804    |   |  | $ | 23,989    |   |  | $ |        |   |  | $ | 173,848   |          
|               | Amortization expense                          |                            | $ | 15           |   |            | $ |           |  |           | $ |          |  |              | $ | 151       |   |  | $ | 1,270     |   |  | $ |        |   |  | $ | 1,436     |          
|               | Pension credit (expense)                      |                            | $ | (19,580      | ) |            | $ | 4,165      |  |           | $ | 38,493    |  |              | $ | (853      | ) |  | $ | (1,223    | ) |  | $ |        |   |  | $ | 21,002    |          
|               | Kaplan stock-based incentive compensation     |                            |   |              |   |            |   |            |  |           |   |           |  |              |   |           |   |  | $ | 119,126   |   |  |   |         |   |  | $ | 119,126   |          
|               | Capital expenditures                          |                            | $ | 18,642       |   |            | $ | 5,434      |  |           | $ | 1,027     |  |              | $ | 65,948    |   |  | $ | 34,537    |   |  | $ |        |   |  | $ | 125,588   |          











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|               |                                               |           |   |         |              |           |   |           |  |  |           |          |   |  |   |           |  
|-------------- | --------------------------------------------- | --------- | - | ------- | ------------ | --------- | - | --------- |  |  | --------- | -------- | - |  | - | --------- | -
|               |                                               |           |   |         |              | Corporate |   |           | 
|               |                                               | Higher    |   |         | Supplemental |           |   | Overhead  |  |  | Total     |         
|(in thousands) |                                               | Education |   |         | Education    |           |   | and Other |  |  | Education |         
|               |                                              
|2005           |                                               |           |   |         |              |           |   |           |  |  |           |          |   |  |   |          
|               | Operating revenues                            |           | $ | 721,579 |              |           | $ | 690,815   |  |  | $         |         |   |  | $ | 1,412,394 |  
|               | Income (loss) from operations                 |           | $ | 82,660  |              |           | $ | 117,075   |  |  | $         | (41,900  | ) |  | $ | 157,835   |  
|               | Identifiable assets                           |           | $ | 587,997 |              |           | $ | 645,957   |  |  | $         | 23,998   |   |  | $ | 1,257,952 |  
|               | Depreciation of property, plant and equipment |           | $ | 20,100  |              |           | $ | 16,073    |  |  | $         | 3,280    |   |  | $ | 39,453    |  
|               | Amortization expense                          |           |   |         |              |           |   |           |  |  | $         | 5,595    |   |  | $ | 5,595     |  
|               | Kaplan stock-based incentive compensation     |           |   |         |              |           |   |           |  |  | $         | 3,000    |   |  | $ | 3,000     |  
|               | Capital expenditures                          |           | $ | 49,406  |              |           | $ | 30,134    |  |  | $         | 4,717    |   |  | $ | 84,257    |  
|2004           |                                               |           |   |         |              |           |   |           |  |  |           |          |   |  |   |          
|               | Operating revenues                            |           | $ | 559,877 |              |           | $ | 575,014   |  |  | $         |         |   |  | $ | 1,134,891 |  
|               | Income (loss) from operations                 |           | $ | 93,402  |              |           | $ | 100,795   |  |  | $         | (72,742  | ) |  | $ | 121,455   |  
|               | Identifiable assets                           |           | $ | 505,077 |              |           | $ | 492,195   |  |  | $         | 36,538   |   |  | $ | 1,033,810 |  
|               | Depreciation of property, plant and equipment |           | $ | 13,222  |              |           | $ | 13,899    |  |  | $         | 2,033    |   |  | $ | 29,154    |  
|               | Amortization expense                          |           |   |         |              |           |   |           |  |  | $         | 8,663    |   |  | $ | 8,663     |  
|               | Kaplan stock-based incentive compensation     |           |   |         |              |           |   |           |  |  | $         | 32,546   |   |  | $ | 32,546    |  
|               | Capital expenditures                          |           | $ | 48,990  |              |           | $ | 26,550    |  |  | $         | 9,681    |   |  | $ | 85,221    |  
|2003           |                                               |           |   |         |              |           |   |           |  |  |           |          |   |  |   |          
|               | Operating revenues                            |           | $ | 368,320 |              |           | $ | 469,757   |  |  | $         |         |   |  | $ | 838,077   |  
|               | Income (loss) from operations                 |           | $ | 58,428  |              |           | $ | 87,044    |  |  | $         | (157,181 | ) |  | $ | (11,709   | )
|               | Identifiable assets                           |           | $ | 389,365 |              |           | $ | 458,156   |  |  | $         | 23,329   |   |  | $ | 870,850   |  
|               | Depreciation of property, plant and equipment |           | $ | 7,970   |              |           | $ | 14,624    |  |  | $         | 1,395    |   |  | $ | 23,989    |  
|               | Amortization expense                          |           |   |         |              |           |   |           |  |  | $         | 1,270    |   |  | $ | 1,270     |  
|               | Kaplan stock-based incentive compensation     |           |   |         |              |           |   |           |  |  | $         | 119,126  |   |  | $ | 119,126   |  
|               | Capital expenditures                          |           | $ | 20,876  |              |           | $ | 10,513    |  |  | $         | 3,148    |   |  | $ | 34,537    |  









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##### Table of Contents



O. SUMMARY OF QUARTERLY OPERATING RESULTS AND
COMPREHENSIVE INCOME (UNAUDITED)




|                                 |                                        |                                                |         |         |         |   |         |         |         |   |         |         |         |   |         |         |         |  
|-------------------------------- | -------------------------------------- | ---------------------------------------------- | ------- | ------- | ------- | - | ------- | ------- | ------- | - | ------- | ------- | ------- | - | ------- | ------- | ------- | -
|                                 |                                        | First                                          |         |         | Second  |   |         | Third   |         |   | Fourth  |        
|                                 |                                        | Quarter                                        |         |         | Quarter |   |         | Quarter |         |   | Quarter |        
|                                 |                                       
|2005 Quarterly Operating Results |                                        |                                                |         |         |         |   |         |         |         |   |         |         |         |   |         |        
|                                 | Operating revenues                     |                                                |         |         |         |   |         |         |         |   |         |         |         |   |         |         |        
|                                 |                                        | Advertising                                    |         | $       | 305,550 |   |         | $       | 336,563 |   |         | $       | 311,581 |   |         | $       | 363,790 |  
|                                 |                                        | Circulation and subscriber                     |         |         | 186,222 |   |         |         | 191,622 |   |         |         | 182,677 |   |         |         | 186,557 |  
|                                 |                                        | Education                                      |         |         | 325,383 |   |         |         | 345,780 |   |         |         | 362,822 |   |         |         | 378,409 |  
|                                 |                                        | Other                                          |         |         | 16,775  |   |         |         | 23,612  |   |         |         | 16,582  |   |         |         | 19,962  |  
|                                 |                                        |                                               
|                                 |                                        |                                                | 833,930 |         |         |   | 897,577 |         |         |   | 873,662 |         |         |   | 948,718 |        
|                                 |                                        |                                               
|                                 | Operating costs and expenses           |                                                |         |         |         |   |         |         |         |   |         |         |         |   |         |         |        
|                                 |                                        | Operating                                      |         |         | 452,453 |   |         |         | 472,981 |   |         |         | 486,400 |   |         |         | 497,782 |  
|                                 |                                        | Selling, general and administrative            |         |         | 226,312 |   |         |         | 237,531 |   |         |         | 225,760 |   |         |         | 241,734 |  
|                                 |                                        | Depreciation of property, plant and equipment  |         |         | 45,568  |   |         |         | 47,905  |   |         |         | 47,531  |   |         |         | 49,538  |  
|                                 |                                        | Amortization of goodwill and other intangibles |         |         | 1,608   |   |         |         | 1,465   |   |         |         | 1,587   |   |         |         | 2,818   |  
|                                 |                                        |                                               
|                                 |                                        |                                                | 725,941 |         |         |   | 759,882 |         |         |   | 761,278 |         |         |   | 791,872 |        
|                                 |                                        |                                               
|                                 | Income from operations                 |                                                |         | 107,989 |         |   |         | 137,695 |         |   |         | 112,384 |         |   |         | 156,846 |        
|                                 |                                        | Equity in (losses) earnings of affiliates      |         |         | (525    | ) |         |         | 342     |   |         |         | (952    | ) |         |         | 254     |  
|                                 |                                        | Interest income                                |         |         | 574     |   |         |         | 576     |   |         |         | 611     |   |         |         | 1,624   |  
|                                 |                                        | Interest expense                               |         |         | (6,519  | ) |         |         | (6,436  | ) |         |         | (7,554  | ) |         |         | (6,245  | )
|                                 |                                        | Other income (expense), net                    |         |         | 7,072   |   |         |         | (3,622  | ) |         |         | 6,869   |   |         |         | (1,339  | )
|                                 |                                        |                                               
|                                 | Income before income taxes             |                                                |         | 108,591 |         |   |         | 128,555 |         |   |         | 111,358 |         |   |         | 151,140 |        
|                                 | Provision for income taxes             |                                                |         | 42,000  |         |   |         | 49,800  |         |   |         | 44,800  |         |   |         | 48,700  |        
|                                 |                                        |                                               
|                                 | Net income                             |                                                |         | 66,591  |         |   |         | 78,755  |         |   |         | 66,558  |         |   |         | 102,440 |        
|                                 | Redeemable preferred stock dividends   |                                                |         | (491    | )       |   |         | (245    | )       |   |         | (245    | )       |   |         |        |        
|                                 |                                        |                                               
|                                
|                                 | Net income available for common shares |                                                | $       | 66,100  |         |   | $       | 78,510  |         |   | $       | 66,313  |         |   | $       | 102,440 |        
|                                 |                                        |                                               
|                                 | Basic earnings per common share        |                                                | $       | 6.89    |         |   | $       | 8.18    |         |   | $       | 6.91    |         |   | $       | 10.67   |        
|                                 |                                        |                                               
|                                 | Diluted earnings per common share      |                                                | $       | 6.87    |         |   | $       | 8.16    |         |   | $       | 6.89    |         |   | $       | 10.65   |        
|                                 |                                        |                                               
|                                 | Basic average shares outstanding       |                                                |         | 9,589   |         |   |         | 9,594   |         |   |         | 9,596   |         |   |         | 9,598   |        
|                                 | Diluted average shares outstanding     |                                                |         | 9,617   |         |   |         | 9,618   |         |   |         | 9,618   |         |   |         | 9,616   |        
|                                 | 2005 Quarterly comprehensive income    |                                                | $       | 51,301  |         |   | $       | 66,397  |         |   | $       | 56,318  |         |   | $       | 114,359 |        
|                                 |                                        |                                               





|                                                                                                                                                                  |  |         |      |  |         |  |  |         |  |   |         |   |  |   |       |  
|----------------------------------------------------------------------------------------------------------------------------------------------------------------- |  | ------- | ---- |  | ------- |  |  | ------- |  | - | ------- | - |  | - | ----- | -
|                                                                                                                                                                  |  | First   |      |  | Second  |  |  | Third   |  |   | Fourth  |  
|                                                                                                                                                                  |  | Quarter |      |  | Quarter |  |  | Quarter |  |   | Quarter |  
|                                                                                                                                                                  | 
|Charges and lost revenues associated with Katrina and other
    hurricanes ($12.6 million and $4.7 million in the
    third and fourth quarters, respectively)    |  |         |      |  |         |  |  |         |  | $ | (1.31   | ) |  | $ | (0.49 | )
|Gain on sale of marketable equity securities and land
    ($5.4 million, $5.2 million and $0.6 million in
    the first, third and fourth quarters, respectively) |  | $       | 0.56 |  |         |  |  |         |  | $ | 0.54    |   |  | $ | 0.06  |  
|                                                                                                                                                                  |  |        









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##### Table of Contents



|                                         |                                        |                                                |         |         |         |   |         |         |         |   |         |         |         |   |         |         |         |  
|---------------------------------------- | -------------------------------------- | ---------------------------------------------- | ------- | ------- | ------- | - | ------- | ------- | ------- | - | ------- | ------- | ------- | - | ------- | ------- | ------- | -
|                                         |                                        | First                                          |         |         | Second  |   |         | Third   |         |   | Fourth  |        
|(In thousands, except per share amounts) |                                        | Quarter                                        |         |         | Quarter |   |         | Quarter |         |   | Quarter |        
|                                         |                                       
|2004 Quarterly Operating Results         |                                        |                                                |         |         |         |   |         |         |         |   |         |         |         |   |         |        
|                                         | Operating revenues                     |                                                |         |         |         |   |         |         |         |   |         |         |         |   |         |         |        
|                                         |                                        | Advertising                                    |         | $       | 299,127 |   |         | $       | 338,060 |   |         | $       | 323,021 |   |         | $       | 386,662 |  
|                                         |                                        | Circulation and subscriber                     |         |         | 180,259 |   |         |         | 185,728 |   |         |         | 185,521 |   |         |         | 190,302 |  
|                                         |                                        | Education                                      |         |         | 258,271 |   |         |         | 276,696 |   |         |         | 293,621 |   |         |         | 306,303 |  
|                                         |                                        | Other                                          |         |         | 21,312  |   |         |         | 17,907  |   |         |         | 17,869  |   |         |         | 19,445  |  
|                                         |                                        |                                               
|                                         |                                        |                                                | 758,969 |         |         |   | 818,391 |         |         |   | 820,032 |         |         |   | 902,712 |        
|                                         |                                        |                                               
|                                         | Operating costs and expenses           |                                                |         |         |         |   |         |         |         |   |         |         |         |   |         |         |        
|                                         |                                        | Operating                                      |         |         | 409,681 |   |         |         | 420,407 |   |         |         | 422,894 |   |         |         | 464,077 |  
|                                         |                                        | Selling, general and administrative            |         |         | 198,132 |   |         |         | 203,334 |   |         |         | 210,488 |   |         |         | 223,413 |  
|                                         |                                        | Depreciation of property, plant and equipment  |         |         | 43,859  |   |         |         | 44,769  |   |         |         | 45,020  |   |         |         | 41,690  |  
|                                         |                                        | Amortization of goodwill and other intangibles |         |         | 2,380   |   |         |         | 3,881   |   |         |         | 1,332   |   |         |         | 1,741   |  
|                                         |                                        |                                               
|                                        
|                                         |                                        |                                                | 654,052 |         |         |   | 672,391 |         |         |   | 679,734 |         |         |   | 730,921 |        
|                                         |                                        |                                               
|                                         | Income from operations                 |                                                |         | 104,917 |         |   |         | 146,000 |         |   |         | 140,298 |         |   |         | 171,791 |        
|                                         |                                        | Equity in losses of affiliates                 |         |         | (1,716  | ) |         |         | (353    | ) |         |         | 539     |   |         |         | (761    | )
|                                         |                                        | Interest income                                |         |         | 344     |   |         |         | 458     |   |         |         | 351     |   |         |         | 469     |  
|                                         |                                        | Interest expense                               |         |         | (6,861  | ) |         |         | (6,830  | ) |         |         | (6,874  | ) |         |         | (7,467  | )
|                                         |                                        | Other income (expense), net                    |         |         | 742     |   |         |         | (71     | ) |         |         | 858     |   |         |         | 6,598   |  
|                                         |                                        |                                               
|                                         | Income before income taxes             |                                                |         | 97,426  |         |   |         | 139,204 |         |   |         | 135,172 |         |   |         | 170,630 |        
|                                         | Provision for income taxes             |                                                |         | 38,000  |         |   |         | 54,300  |         |   |         | 52,700  |         |   |         | 64,700  |        
|                                         |                                        |                                               
|                                         | Net income                             |                                                |         | 59,426  |         |   |         | 84,904  |         |   |         | 82,472  |         |   |         | 105,930 |        
|                                         | Redeemable preferred stock dividends   |                                                |         | (502    | )       |   |         | (245    | )       |   |         | (245    | )       |   |         |        |        
|                                         |                                        |                                               
|                                        
|                                         | Net income available for common shares |                                                | $       | 58,924  |         |   | $       | 84,659  |         |   | $       | 82,227  |         |   | $       | 105,930 |        
|                                         |                                        |                                               
|                                         | Basic earnings per common share        |                                                | $       | 6.17    |         |   | $       | 8.85    |         |   | $       | 8.59    |         |   | $       | 11.07   |        
|                                         |                                        |                                               
|                                         | Diluted earnings per common share      |                                                | $       | 6.15    |         |   | $       | 8.82    |         |   | $       | 8.57    |         |   | $       | 11.03   |        
|                                         |                                        |                                               
|                                         | Basic average shares outstanding       |                                                |         | 9,550   |         |   |         | 9,563   |         |   |         | 9,568   |         |   |         | 9,571   |        
|                                         | Diluted average shares outstanding     |                                                |         | 9,582   |         |   |         | 9,596   |         |   |         | 9,598   |         |   |         | 9,601   |        
|                                         | 2004 Quarterly comprehensive income    |                                                | $       | 74,806  |         |   | $       | 78,719  |         |   | $       | 90,962  |         |   | $       | 136,089 |        
|                                         |                                        |                                               











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##### Table of Contents



SCHEDULE II


THE WASHINGTON POST COMPANY





SCHEDULE II  VALUATION AND QUALIFYING
ACCOUNTS


|                             |                                                          |             |            |            |            |   |             |             |  |            |             |             |  |   |            |            | 
|---------------------------- | -------------------------------------------------------- | ----------- | ---------- | ---------- | ---------- | - | ----------- | ----------- |  | ---------- | ----------- | ----------- |  | - | ---------- | ---------- | 
|                             |                                                         
|Column A                     |                                                          | Column B    |            |            | Column C   |   |             | Column D    |  |            | Column E    |            
|                             |                                                         
|                             |                                                          | Additions  |            |            |           
|                             |                                                          | Balance at  |            |            | Charged to |   |             |             |  | Balance at |            
|                             |                                                          | Beginning   |            |            | Costs and  |   |             |             |  | End of     |            
|Description                  |                                                          | of Period   |            |            | Expenses   |   |             | Deductions  |  |            | Period      |            
|                             |                                                         
|Year Ended December 28, 2003 |                                                          |             |            |            |            |   |             |             |  |            |             |             |  |   |            |           
|                             | Allowance for doubtful accounts and returns              |             | $          | 60,240,000 |            |   | $           | 93,565,000  |  |            | $           | 91,951,000  |  |   | $          | 61,854,000 | 
|                             | Allowance for advertising rate adjustments and discounts |             |            | 5,156,000  |            |   |             | 6,371,000   |  |            |             | 6,857,000   |  |   |            | 4,670,000  | 
|                             |                                                          |            
|                             |                                                          | $           | 65,396,000 |            |            | $ | 99,936,000  |             |  | $          | 98,808,000  |             |  | $ | 66,524,000 |           
|                             |                                                          |            
|Year Ended January 2, 2005   |                                                          |             |            |            |            |   |             |             |  |            |             |             |  |   |            |           
|                             | Allowance for doubtful accounts and returns              |             | $          | 61,854,000 |            |   | $           | 106,605,000 |  |            | $           | 102,807,000 |  |   | $          | 65,652,000 | 
|                             | Allowance for advertising rate adjustments and discounts |             |            | 4,670,000  |            |   |             | 7,874,000   |  |            |             | 7,231,000   |  |   |            | 5,313,000  | 
|                             |                                                          |            
|                             |                                                          | $           | 66,524,000 |            |            | $ | 114,479,000 |             |  | $          | 110,038,000 |             |  | $ | 70,965,000 |           
|                             |                                                          |            
|Year Ended January 1, 2006   |                                                          |             |            |            |            |   |             |             |  |            |             |             |  |   |            |           
|                             | Allowance for doubtful accounts and returns              |             | $          | 65,652,000 |            |   | $           | 127,195,000 |  |            | $           | 121,722,000 |  |   | $          | 71,125,000 | 
|                             | Allowance for advertising rate adjustments and discounts |             |            | 5,313,000  |            |   |             | 14,970,000  |  |            |             | 13,309,000  |  |   |            | 6,974,000  | 
|                             |                                                          |            
|                             |                                                          | $           | 70,965,000 |            |            | $ | 142,165,000 |             |  | $          | 135,031,000 |             |  | $ | 78,099,000 |           
|                             |                                                          |            









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##### Table of Contents






TEN-YEAR SUMMARY OF SELECTED HISTORICAL FINANCIAL DATA




|                                         |                                                                                            |                                                            |   |           |       |  |   |           |       |  |   |           |       | 
|---------------------------------------- | ------------------------------------------------------------------------------------------ | ---------------------------------------------------------- | - | --------- | ----- |  | - | --------- | ----- |  | - | --------- | ----- | 
|(in thousands, except per share amounts) |                                                                                            | 2005                                                       |   |           | 2004  |  |   | 2003      |      
|                                         |                                                                                           
|Results of Operations                    |                                                                                            |                                                            |   |           |       |  |   |           |       |  |   |          
|                                         | Operating revenues                                                                         |                                                            | $ | 3,553,887 |       |  | $ | 3,300,104 |       |  | $ | 2,838,911 |      
|                                         | Income from operations                                                                     |                                                            | $ | 514,914   |       |  | $ | 563,006   |       |  | $ | 363,820   |      
|                                         | Income before cumulative effect of change in accounting principle                          |                                                            | $ | 314,344   |       |  | $ | 332,732   |       |  | $ | 241,088   |      
|                                         | Cumulative effect of change in method of accounting for goodwill
    and other intangibles |                                                            |   |          |       |  |   |          |       |  |   |          |      
|                                         |                                                                                            |                                                           
|                                         | Net income                                                                                 |                                                            | $ | 314,344   |       |  | $ | 332,732   |       |  | $ | 241,088   |      
|                                         |                                                                                            |                                                           
|Per Share Amounts                        |                                                                                            |                                                            |   |           |       |  |   |           |       |  |   |          
|                                         | Basic earnings per common share                                                            |                                                            |   |           |       |  |   |           |       |  |   |           |      
|                                         |                                                                                            | Before cumulative effect of change in accounting principle |   | $         | 32.66 |  |   | $         | 34.69 |  |   | $         | 25.19 | 
|                                         |                                                                                            | Cumulative effect of change in accounting principle        |   |           |      |  |   |           |      |  |   |           |      | 
|                                         |                                                                                            |                                                           
|                                         |                                                                                            | Net income available for common shares                     |   | $         | 32.66 |  |   | $         | 34.69 |  |   | $         | 25.19 | 
|                                         |                                                                                            |                                                           
|                                         |                                                                                            | Basic average shares outstanding                           |   |           | 9,594 |  |   |           | 9,563 |  |   |           | 9,530 | 
|                                         | Diluted earnings per share                                                                 |                                                            |   |           |       |  |   |           |       |  |   |           |      
|                                         |                                                                                            | Before cumulative effect of change in accounting principle |   | $         | 32.59 |  |   | $         | 34.59 |  |   | $         | 25.12 | 
|                                         |                                                                                            | Cumulative effect of change in accounting principle        |   |           |      |  |   |           |      |  |   |           |      | 
|                                         |                                                                                            |                                                           
|                                         |                                                                                            | Net income available for common shares                     |   | $         | 32.59 |  |   | $         | 34.59 |  |   | $         | 25.12 | 
|                                         |                                                                                            |                                                           
|                                         |                                                                                            | Diluted average shares outstanding                         |   |           | 9,616 |  |   |           | 9,592 |  |   |           | 9,555 | 
|                                         | Cash dividends                                                                             |                                                            | $ | 7.40      |       |  | $ | 7.00      |       |  | $ | 5.80      |      
|                                         | Common shareholders equity                                                                |                                                            | $ | 274.79    |       |  | $ | 251.11    |       |  | $ | 216.17    |      
|Financial Position                       |                                                                                            |                                                            |   |           |       |  |   |           |       |  |   |          
|                                         | Current assets                                                                             |                                                            | $ | 818,326   |       |  | $ | 750,509   |       |  | $ | 550,571   |      
|                                         | Working capital (deficit)                                                                  |                                                            |   | 123,605   |       |  |   | 62,348    |       |  |   | (190,426  | )    
|                                         | Property, plant and equipment                                                              |                                                            |   | 1,142,632 |       |  |   | 1,089,952 |       |  |   | 1,051,373 |      
|                                         | Total assets                                                                               |                                                            |   | 4,584,773 |       |  |   | 4,308,765 |       |  |   | 3,949,798 |      
|                                         | Long-term debt                                                                             |                                                            |   | 403,635   |       |  |   | 425,889   |       |  |   | 422,471   |      
|                                         | Common shareholders equity                                                                |                                                            |   | 2,638,423 |       |  |   | 2,404,606 |       |  |   | 2,062,681 |      

Impact from certain unusual items (after-tax and diluted EPS
amounts):


2005


|  |                                                                                                              
|- | -------------------------------------------------------------------------------------------------------------
| | charges and lost revenues of $17.3 million ($1.80 per
    share) associated with Katrina and other hurricanes
| | gain of $11.2 million ($1.16 per share) from sales of
    non-operating land and marketable equity securities

2003


|  |                                                                                                                                                                 
|- | ----------------------------------------------------------------------------------------------------------------------------------------------------------------
| | gain of $32.3 million ($3.38 per share) on the sale of
    the Companys 50% interest in the International Herald
    Tribune                                   
| | gain of $25.5 million ($2.66 per share) on sale of
    land at The Washington Post newspaper                                                                    
| | charge of $20.8 million ($2.18 per share) for early
    retirement programs at The Washington Post newspaper                                                    
| | Kaplan stock compensation expense of $6.4 million
    ($0.67 per share) for the 10% premium associated with the
    purchase of outstanding Kaplan stock options
| | charge of $3.9 million ($0.41 per share) in connection
    with the establishment of the Kaplan Educational Foundation                                          

2002


|  |                                                                                                                          
|- | -------------------------------------------------------------------------------------------------------------------------
| | gain of $16.7 million ($1.75 per share) on the
    exchange of certain cable systems                                     
| | charge of $11.3 million ($1.18 per share) for early
    retirement programs at Newsweek and The Washington Post newspaper









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##### Table of Contents








|                      |                                                                                            |                                                            |   |           |       |   |   |           |       |  |      |           |       |      |   |           |        |  |   |           |        |  |      |           |        |  |   |           |        | 
|--------------------- | ------------------------------------------------------------------------------------------ | ---------------------------------------------------------- | - | --------- | ----- | - | - | --------- | ----- |  | ---- | --------- | ----- | ---- | - | --------- | ------ |  | - | --------- | ------ |  | ---- | --------- | ------ |  | - | --------- | ------ | 
|                      |                                                                                            |                                                            |   |           | 2002  |   |   | 2001      |       |  | 2000 |           |       | 1999 |   |           | 1998   |  |   | 1997      |        |  | 1996 |          
|                      |                                                                                            |                                                            |   |           |      
|Results of Operations |                                                                                            |                                                            |   |           |       |   |   |           |       |  |      |           |       |      |   |           |        |  |   |           |        |  |      |           |        |  |   |          
|                      | Operating revenues                                                                         |                                                            | $ | 2,584,203 |       |   | $ | 2,411,024 |       |  | $    | 2,409,633 |       |      | $ | 2,212,177 |        |  | $ | 2,107,593 |        |  | $    | 1,952,986 |        |  | $ | 1,851,058 |       
|                      | Income from operations                                                                     |                                                            | $ | 377,590   |       |   | $ | 219,932   |       |  | $    | 339,882   |       |      | $ | 388,453   |        |  | $ | 378,897   |        |  | $    | 381,351   |        |  | $ | 337,169   |       
|                      | Income before cumulative effect of change in accounting principle                          |                                                            | $ | 216,368   |       |   | $ | 229,639   |       |  | $    | 136,470   |       |      | $ | 225,785   |        |  | $ | 417,259   |        |  | $    | 281,574   |        |  | $ | 220,817   |       
|                      | Cumulative effect of change in method of accounting for goodwill
    and other intangibles |                                                            |   | (12,100   | )     |   |   |          |       |  |      |          |       |      |   |          |        |  |   |          |        |  |      |          |        |  |   |          |       
|                      |                                                                                            |                                                           
|                      | Net income                                                                                 |                                                            | $ | 204,268   |       |   | $ | 229,639   |       |  | $    | 136,470   |       |      | $ | 225,785   |        |  | $ | 417,259   |        |  | $    | 281,574   |        |  | $ | 220,817   |       
|                      |                                                                                            |                                                           
|Per Share Amounts     |                                                                                            |                                                            |   |           |       |   |   |           |       |  |      |           |       |      |   |           |        |  |   |           |        |  |      |           |        |  |   |          
|                      | Basic earnings per common share                                                            |                                                            |   |           |       |   |   |           |       |  |      |           |       |      |   |           |        |  |   |           |        |  |      |           |        |  |   |           |       
|                      |                                                                                            | Before cumulative effect of change in accounting principle |   | $         | 22.65 |   |   | $         | 24.10 |  |      | $         | 14.34 |      |   | $         | 22.35  |  |   | $         | 41.27  |  |      | $         | 26.23  |  |   | $         | 20.08  | 
|                      |                                                                                            | Cumulative effect of change in accounting principle        |   |           | (1.27 | ) |   |           |      |  |      |           |      |      |   |           |       |  |   |           |       |  |      |           |       |  |   |           |       | 
|                      |                                                                                            |                                                           
|                      |                                                                                            | Net income available for common shares                     |   | $         | 21.38 |   |   | $         | 24.10 |  |      | $         | 14.34 |      |   | $         | 22.35  |  |   | $         | 41.27  |  |      | $         | 26.23  |  |   | $         | 20.08  | 
|                      |                                                                                            |                                                           
|                      |                                                                                            | Basic average shares outstanding                           |   |           | 9,504 |   |   |           | 9,486 |  |      |           | 9,445 |      |   |           | 10,061 |  |   |           | 10,087 |  |      |           | 10,700 |  |   |           | 10,964 | 
|                      | Diluted earnings per share                                                                 |                                                            |   |           |       |   |   |           |       |  |      |           |       |      |   |           |        |  |   |           |        |  |      |           |        |  |   |           |       
|                      |                                                                                            | Before cumulative effect of change in accounting principle |   | $         | 22.61 |   |   | $         | 24.06 |  |      | $         | 14.32 |      |   | $         | 22.30  |  |   | $         | 41.10  |  |      | $         | 26.15  |  |   | $         | 20.05  | 
|                      |                                                                                            | Cumulative effect of change in accounting principle        |   |           | (1.27 | ) |   |           |      |  |      |           |      |      |   |           |       |  |   |           |       |  |      |           |       |  |   |           |       | 
|                      |                                                                                            |                                                           
|                      |                                                                                            | Net income available for common shares                     |   | $         | 21.34 |   |   | $         | 24.06 |  |      | $         | 14.32 |      |   | $         | 22.30  |  |   | $         | 41.10  |  |      | $         | 26.15  |  |   | $         | 20.05  | 
|                      |                                                                                            |                                                           
|                      |                                                                                            | Diluted average shares outstanding                         |   |           | 9,523 |   |   |           | 9,500 |  |      |           | 9,460 |      |   |           | 10,082 |  |   |           | 10,129 |  |      |           | 10,733 |  |   |           | 10,980 | 
|                      | Cash dividends                                                                             |                                                            | $ | 5.60      |       |   | $ | 5.60      |       |  | $    | 5.40      |       |      | $ | 5.20      |        |  | $ | 5.00      |        |  | $    | 4.80      |        |  | $ | 4.60      |       
|                      | Common shareholders equity                                                                |                                                            | $ | 192.45    |       |   | $ | 177.30    |       |  | $    | 156.55    |       |      | $ | 144.90    |        |  | $ | 157.34    |        |  | $    | 117.36    |        |  | $ | 121.24    |       
|Financial Position    |                                                                                            |                                                            |   |           |       |   |   |           |       |  |      |           |       |      |   |           |        |  |   |           |        |  |      |           |        |  |   |          
|                      | Current assets                                                                             |                                                            | $ | 407,347   |       |   | $ | 426,603   |       |  | $    | 405,067   |       |      | $ | 476,159   |        |  | $ | 404,878   |        |  | $    | 308,492   |        |  | $ | 382,631   |       
|                      | Working capital (deficit)                                                                  |                                                            |   | (356,644  | )     |   |   | (37,233   | )     |  |      | (3,730    | )     |      |   | (346,389  | )      |  |   | 15,799    |        |  |      | (300,264  | )      |  |   | 100,995   |       
|                      | Property, plant and equipment                                                              |                                                            |   | 1,094,400 |       |   |   | 1,098,211 |       |  |      | 927,061   |       |      |   | 854,906   |        |  |   | 841,062   |        |  |      | 653,750   |        |  |   | 511,363   |       
|                      | Total assets                                                                               |                                                            |   | 3,604,866 |       |   |   | 3,588,844 |       |  |      | 3,200,743 |       |      |   | 2,986,944 |        |  |   | 2,729,661 |        |  |      | 2,077,317 |        |  |   | 1,870,411 |       
|                      | Long-term debt                                                                             |                                                            |   | 405,547   |       |   |   | 883,078   |       |  |      | 873,267   |       |      |   | 397,620   |        |  |   | 395,000   |        |  |      |          |        |  |   |          |       
|                      | Common shareholders equity                                                                |                                                            |   | 1,830,386 |       |   |   | 1,683,485 |       |  |      | 1,481,007 |       |      |   | 1,367,790 |        |  |   | 1,588,103 |        |  |      | 1,184,074 |        |  |   | 1,322,803 |       

2001


|  |                                                                                                                                                                           
|- | --------------------------------------------------------------------------------------------------------------------------------------------------------------------------
| | gain of $196.5 million ($20.69 per share) on the
    exchange of certain cable systems                                                                                    
| | non-cash goodwill and other intangibles impairment charge of
    $19.9 million ($2.10 per share) recorded in
    conjunction with the Companys BrassRing investment      
| | charges of $18.3 million ($1.93 per share) from the
    write-down of a non-operating parcel of land and certain
    cost-method investments to their estimated fair value

2000


|  |                                                                                                               
|- | --------------------------------------------------------------------------------------------------------------
| | charge of $16.5 million ($1.74 per share) for an early
    retirement program at The Washington Post newspaper

1999


|  |                                                                                          
|- | -----------------------------------------------------------------------------------------
| | gains of $18.6 million ($1.81 per share) on the sales
    of marketable equity securities

1998


|  |                                                                                                                                              
|- | ---------------------------------------------------------------------------------------------------------------------------------------------
| | gain of $168.0 million ($16.59 per share) on the
    disposition of the Companys 28% interest in Cowles Media
    Company                   
| | gain of $13.8 million ($1.36 per share) from the sale
    of 14 small cable systems                                                          
| | gain of $12.6 million ($1.24 per share) on the
    disposition of the Companys investment in Junglee, a
    facilitator of internet commerce

1997


|  |                                                                                                                                                                  
|- | -----------------------------------------------------------------------------------------------------------------------------------------------------------------
| | gain of $28.4 million ($2.65 per share) from the sale
    of the Companys investments in Bear Island Paper Company
    LP and Bear Island Timberlands Company LP
| | gain of $16.0 million ($1.50 per share) from the sale
    of the PASS regional cable sports network                                                              









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##### Table of Contents













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##### Table of Contents






INDEX TO EXHIBITS


|        |    |    |             |                                                                                                                                                                                                                                                                                                                                                                                                                                                                     
|------- | -- | -- | ----------- | --------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------
|Exhibit |    |    |            
|Number  |    |    | Description
|       
|        | 3  | .1 |             | Restated Certificate of Incorporation of the Company dated
    November 13, 2003 (incorporated by reference to
    Exhibit 3.1 to the Companys Annual Report on
    Form 10-K for the fiscal year ended December 28, 2003).                                                                                                                                                                                                                                        
|       
|        | 3  | .2 |             | Certificate of Designation for the Companys Series A
    Preferred Stock dated September 22, 2003 (incorporated by
    reference to Exhibit 3.2 to Amendment No. 1 to the
    Companys Current Report on Form 8-K dated
    September 22, 2003).                                                                                                                                                                                                                  
|       
|        | 3  | .3 |             | By-Laws of the Company as amended and restated through
    September 22, 2003 (incorporated by reference to
    Exhibit 3.4 to the Companys Current Report on
    Form 8-K dated September 22, 2003).                                                                                                                                                                                                                                                              
|       
|        | 4  | .1 |             | Form of the Companys 5.50% Notes due
    February 15, 2009, issued under the Indenture dated as of
    February 17, 1999, between the Company and The First
    National Bank of Chicago, as Trustee (incorporated by reference
    to Exhibit 4.2 to the Companys Annual Report on
    Form 10-K for the fiscal year ended January 3, 1999).                                                                                                                     
|       
|        | 4  | .2 |             | Indenture dated as of February 17, 1999, between the
    Company and The First National Bank of Chicago, as Trustee
    (incorporated by reference to Exhibit 4.3 to the
    Companys Annual Report on Form 10-K for the fiscal
    year ended January 3, 1999).                                                                                                                                                                                                   
|       
|        | 4  | .3 |             | First Supplemental Indenture dated as of September 22,
    2003, among WP Company LLC, the Company and Bank One, NA,
    as successor to The First National Bank of Chicago, as Trustee,
    to the Indenture dated as of February 17, 1999, between The
    Washington Post Company and The First National Bank of Chicago,
    as Trustee (incorporated by reference to Exhibit 4.1 to the
    Companys Current Report on Form 8-K dated
    September 22, 2003).
|       
|        | 4  | .4 |             | 364-Day Credit Agreement dated as of August 10, 2005, among
    the Company, Citibank, N.A., JP Morgan Chase Bank, N.A.,
    Wachovia Bank, National Association, SunTrust Bank, The Bank of
    New York and PNC Bank, N.A. (incorporated by reference to
    Exhibit 4.1 to the Companys Current Report on
    form 8-K dated August 12, 2005).                                                                                                                  
|       
|        | 4  | .5 |             | 5-Year Credit Agreement dated as of August 14, 2002, among
    the Company, Citibank, N.A., Wachovia Bank, N.A., SunTrust Bank,
    Bank One, N.A., JPMorgan Chase Bank, The Bank of New York and
    PNC Bank, N.A. (incorporated by reference to Exhibit 4.4 to
    the Companys Quarterly Report on Form 10-Q for the
    quarter ended September 29, 2002).                                                                                                    
|       
|        | 4  | .6 |             | Consent and Amendment No. 1 dated as of August 13,
    2003, to the 5-Year Credit Agreement dated as of August 14,
    2002, among the Company, Citibank, N.A. and the other lenders
    that are parties to such Credit Agreement (incorporated by
    reference to Exhibit 4.3 to the Companys Current
    Report on Form 8-K dated September 22, 2003).                                                                                                         
|       
|        | 10 | .1 |             | The Washington Post Company Incentive Compensation Plan as
    amended and restated on January 20, 2006 (incorporated by
    reference to Exhibit 10.1 to the Companys Current
    Report on Form 8-K dated January 20, 2006).*                                                                                                                                                                                                                                    
|       
|        | 10 | .2 |             | The Washington Post Company Stock Option Plan as amended and
    restated effective May 31, 2003 (incorporated by reference
    to Exhibit 10.1 to the Companys Quarterly Report on
    Form 10-Q for the quarter ended September 28, 2003).*                                                                                                                                                                                                                      
|       
|        | 10 | .3 |             | The Washington Post Company Supplemental Executive Retirement
    Plan as amended and restated through March 14, 2002
    (incorporated by reference to Exhibit 10.4 to the
    Companys Annual Report on Form 10-K for the fiscal
    year ended December 30, 2001).*                                                                                                                                                                                             
|       
|        | 10 | .4 |             | The Washington Post Company Deferred Compensation Plan as
    amended and restated effective May 12, 2005 (incorporated
    by reference to Exhibit 10.1 to the Companys Current
    Report on Form 8-K dated May 12, 2005).*                                                                                                                                                                                                                                      
|       
|        | 11 |    |             | Calculation of earnings per share of common stock.                                                                                                                                                                                                                                                                                                                                                                                                                  
|       
|        | 21 |    |             | List of subsidiaries of the Company.                                                                                                                                                                                                                                                                                                                                                                                                                                
|       
|        | 23 |    |             | Consent of independent registered public accounting firm.                                                                                                                                                                                                                                                                                                                                                                                                           
|       
|        | 24 |    |             | Power of attorney dated February 28, 2006.                                                                                                                                                                                                                                                                                                                                                                                                                          
|       
|        | 31 | .1 |             | Rule 13a-14(a)/15d-14(a) Certification of the Chief
    Executive Officer.                                                                                                                                                                                                                                                                                                                                                                                          
|       
|        | 31 | .2 |             | Rule 13a-14(a)/15d-14(a) Certification of the Chief
    Financial Officer.                                                                                                                                                                                                                                                                                                                                                                                          
|       
|        | 32 | .1 |             | Section 1350 Certification of the Chief Executive Officer.                                                                                                                                                                                                                                                                                                                                                                                                          
|       
|        | 32 | .2 |             | Section 1350 Certification of the Chief Financial Officer.                                                                                                                                                                                                                                                                                                                                                                                                          




10-K.