##### 



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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 2, 2005

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 whether the registrant (1) has filed all reports
required to be filed by Section 13 or 15(d) of the Securities Exchange Act of
1934 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 an accelerated filer (as
defined in Rule 12b-2 of the Act). Yes þ No o

Aggregate market value of the Companys voting stock held by non-affiliates on
June 27, 2004, based on the closing price for the Companys Class B Common
Stock on the New York Stock Exchange on such date: approximately
$4,927,000,000.

Shares of common stock outstanding at
February 18, 2005:

Class A Common Stock  1,722,250 shares
Class B Common Stock  7,866,357 shares

Documents partially incorporated by reference:

Definitive Proxy Statement for the
Companys 2005 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 2004 FORM 10-K


|                                                                                                                                                        |  |                                                                                                                      |                              |      |    |    |  |  |  | 
|------------------------------------------------------------------------------------------------------------------------------------------------------- |  | -------------------------------------------------------------------------------------------------------------------- | ---------------------------- | ---- | -- | -- |  |  |  | 
|                                                                                                                                                        |  | PART I                                                                                                               |                              | Page
|                                                                                                                                                        |  |                                                                                                                      |                              |     
|                                                                                                                                                       
|                                                                                                                                                       
|                                                                                                                                                       
|                                                                                                                                                       
|Item 1.                                                                                                                                                 |  | Business                                                                                                             |                              |      | 1  |   
|                                                                                                                                                       
|                                                                                                                                                       
|                                                                                                                                                       
|                                                                                                                                                       
|                                                                                                                                                        |  |                                                                                                                      | Newspaper Publishing         |      |    | 1  | 
|                                                                                                                                                       
|                                                                                                                                                       
|                                                                                                                                                       
|                                                                                                                                                       
|                                                                                                                                                        |  |                                                                                                                      | Television Broadcasting      |      |    | 3  | 
|                                                                                                                                                       
|                                                                                                                                                       
|                                                                                                                                                       
|                                                                                                                                                       
|                                                                                                                                                        |  |                                                                                                                      | Cable Television Operations  |      |    | 7  | 
|                                                                                                                                                       
|                                                                                                                                                       
|                                                                                                                                                       
|                                                                                                                                                       
|                                                                                                                                                        |  |                                                                                                                      | Education                    |      |    | 10 | 
|                                                                                                                                                       
|                                                                                                                                                       
|                                                                                                                                                       
|                                                                                                                                                       
|                                                                                                                                                        |  |                                                                                                                      | Magazine Publishing          |      |    | 13 | 
|                                                                                                                                                       
|                                                                                                                                                       
|                                                                                                                                                       
|                                                                                                                                                       
|                                                                                                                                                        |  |                                                                                                                      | Other Activities             |      |    | 15 | 
|                                                                                                                                                       
|                                                                                                                                                       
|                                                                                                                                                       
|                                                                                                                                                       
|                                                                                                                                                        |  |                                                                                                                      | Production and Raw Materials |      |    | 15 | 
|                                                                                                                                                       
|                                                                                                                                                       
|                                                                                                                                                       
|                                                                                                                                                       
|                                                                                                                                                        |  |                                                                                                                      | Competition                  |      |    | 16 | 
|                                                                                                                                                       
|                                                                                                                                                       
|                                                                                                                                                       
|                                                                                                                                                       
|                                                                                                                                                        |  |                                                                                                                      | Executive Officers           |      |    | 18 | 
|                                                                                                                                                       
|                                                                                                                                                       
|                                                                                                                                                       
|                                                                                                                                                       
|                                                                                                                                                        |  |                                                                                                                      | Employees                    |      |    | 19 | 
|                                                                                                                                                       
|                                                                                                                                                       
|                                                                                                                                                       
|                                                                                                                                                       
|                                                                                                                                                        |  |                                                                                                                      | Forward-Looking Statements   |      |    | 20 | 
|                                                                                                                                                       
|                                                                                                                                                       
|                                                                                                                                                       
|                                                                                                                                                       
|                                                                                                                                                        |  |                                                                                                                      | Available Information        |      |    | 20 | 
|                                                                                                                                                       
|                                                                                                                                                       
|                                                                                                                                                       
|                                                                                                                                                       
|Item 2.                                                                                                                                                 |  | Properties                                                                                                           |                              |      | 20 |   
|                                                                                                                                                       
|                                                                                                                                                       
|                                                                                                                                                       
|                                                                                                                                                       
|Item 3.                                                                                                                                                 |  | Legal Proceedings                                                                                                    |                              |      | 22 |   
|                                                                                                                                                       
|                                                                                                                                                       
|                                                                                                                                                       
|                                                                                                                                                       
|Item 4.                                                                                                                                                 |  | Submission of Matters to a Vote of Security Holders                                                                  |                              |      | 22 |   
|                                                                                                                                                       
|PART II                                                                                                                                                
|                                                                                                                                                       
|                                                                                                                                                       
|                                                                                                                                                       
|                                                                                                                                                       
|Item 5.                                                                                                                                                 |  | Market for the Registrants Common Equity, Related
    Stockholder Matters and Issuer Purchases of Equity Securities |                              |      | 22 |   
|                                                                                                                                                       
|                                                                                                                                                       
|                                                                                                                                                       
|                                                                                                                                                       
|Item 6.                                                                                                                                                 |  | Selected Financial Data                                                                                              |                              |      | 22 |   
|                                                                                                                                                       
|                                                                                                                                                       
|                                                                                                                                                       
|                                                                                                                                                       
|Item 7.                                                                                                                                                 |  | Managements Discussion and Analysis of Financial Condition
    and Results of Operations                            |                              |      | 22 |   
|                                                                                                                                                       
|                                                                                                                                                       
|                                                                                                                                                       
|                                                                                                                                                       
|Item 7A.                                                                                                                                                |  | Quantitative and Qualitative Disclosures About Market Risk                                                           |                              |      | 22 |   
|                                                                                                                                                       
|                                                                                                                                                       
|                                                                                                                                                       
|                                                                                                                                                       
|Item 8.                                                                                                                                                 |  | Financial Statements and Supplementary Data                                                                          |                              |      | 23 |   
|                                                                                                                                                       
|                                                                                                                                                       
|                                                                                                                                                       
|                                                                                                                                                       
|Item 9.                                                                                                                                                 |  | Changes in and Disagreements with Accountants on Accounting and
    Financial Disclosure                             |                              |      | 23 |   
|                                                                                                                                                       
|                                                                                                                                                       
|                                                                                                                                                       
|                                                                                                                                                       
|Item 9A.                                                                                                                                                |  | Controls and Procedures                                                                                              |                              |      | 23 |   
|                                                                                                                                                       
|                                                                                                                                                       
|                                                                                                                                                       
|                                                                                                                                                       
|Item 9B.                                                                                                                                                |  | Other Information                                                                                                    |                              |      | 24 |   
|                                                                                                                                                       
|PART III                                                                                                                                               
|                                                                                                                                                       
|                                                                                                                                                       
|                                                                                                                                                       
|                                                                                                                                                       
|Item 10.                                                                                                                                                |  | Directors and Executive Officers of the Registrant                                                                   |                              |      | 24 |   
|                                                                                                                                                       
|                                                                                                                                                       
|                                                                                                                                                       
|                                                                                                                                                       
|Item 11.                                                                                                                                                |  | Executive Compensation                                                                                               |                              |      | 24 |   
|                                                                                                                                                       
|                                                                                                                                                       
|                                                                                                                                                       
|                                                                                                                                                       
|Item 12.                                                                                                                                                |  | Security Ownership of Certain Beneficial Owners and Management
    and Related Stockholder Matters                   |                              |      | 25 |   
|                                                                                                                                                       
|                                                                                                                                                       
|                                                                                                                                                       
|                                                                                                                                                       
|Item 13.                                                                                                                                                |  | Certain Relationships and Related Transactions                                                                       |                              |      | 25 |   
|                                                                                                                                                       
|                                                                                                                                                       
|                                                                                                                                                       
|                                                                                                                                                       
|Item 14.                                                                                                                                                |  | Principal Accountant Fees and Services                                                                               |                              |      | 25 |   
|                                                                                                                                                       
|PART IV                                                                                                                                                
|                                                                                                                                                       
|                                                                                                                                                       
|                                                                                                                                                       
|                                                                                                                                                       
|Item 15.                                                                                                                                                |  | Exhibits and Financial Statement Schedules                                                                           |                              |      | 25 |   
|                                                                                                                                                       
|                                                                                                                                                       
|                                                                                                                                                       
|                                                                                                                                                       
|SIGNATURES                                                                                                                                              |  |                                                                                                                      | 26                           |     
|                                                                                                                                                       
|                                                                                                                                                       
|                                                                                                                                                       
|                                                                                                                                                       
|INDEX TO FINANCIAL INFORMATION                                                                                                                          |  |                                                                                                                      | 27                           |     
|                                                                                                                                                       
|                                                                                                                                                       
|                                                                                                                                                       
|                                                                                                                                                       
|Managements Discussion and Analysis of Results
    of Operations and Financial Condition                                                               |  |                                                                                                                      | 28                           |     
|                                                                                                                                                       
|                                                                                                                                                       
|                                                                                                                                                       
|                                                                                                                                                       
|Financial Statements and Schedules:                                                                                                                     |  |                                                                                                                      |                              |     
|                                                                                                                                                       
|                                                                                                                                                       
|                                                                                                                                                       
|                                                                                                                                                       
|Report of Independent Registered Public
    Accounting Firm                                                                                             |  |                                                                                                                      | 38                           |     
|                                                                                                                                                       
|                                                                                                                                                       
|                                                                                                                                                       
|                                                                                                                                                       
|Consolidated Statements of Income and
    Consolidated Statements of Comprehensive Income for the Three
    Fiscal Years      Ended
    January 2, 2005 |  |                                                                                                                      | 39                           |     
|                                                                                                                                                       
|                                                                                                                                                       
|                                                                                                                                                       
|                                                                                                                                                       
|Consolidated Balance Sheets at January
    2, 2005 and December 28, 2003                                                                                |  |                                                                                                                      | 40                           |     
|                                                                                                                                                       
|                                                                                                                                                       
|                                                                                                                                                       
|                                                                                                                                                       
|Consolidated Statements of Cash Flows
    for the Three Fiscal Years Ended January 2, 2005                                                              |  |                                                                                                                      | 42                           |     
|                                                                                                                                                       
|                                                                                                                                                       
|                                                                                                                                                       
|                                                                                                                                                       
|Consolidated Statements of Changes in
    Common Shareholders Equity for the Three Fiscal Years
    Ended January 2, 2005                              |  |                                                                                                                      | 43                           |     
|                                                                                                                                                       
|                                                                                                                                                       
|                                                                                                                                                       
|                                                                                                                                                       
|Notes to Consolidated Financial
    Statements                                                                                                          |  |                                                                                                                      | 44                           |     
|                                                                                                                                                       
|                                                                                                                                                       
|                                                                                                                                                       
|                                                                                                                                                       
|Financial Statement Schedule for the
    Three Fiscal Years Ended January 2, 2005:                                                                      |  |                                                                                                                      |                              |     
|                                                                                                                                                       
|                                                                                                                                                       
|                                                                                                                                                       
|                                                                                                                                                       
|II  Valuation and
    Qualifying Accounts                                                                                                              |  |                                                                                                                      | 59                           |     
|                                                                                                                                                       
|                                                                                                                                                       
|                                                                                                                                                       
|                                                                                                                                                       
|Ten-Year Summary of Selected Historical Financial
    Data (Unaudited)                                                                                  |  |                                                                                                                      | 60                           |     
|                                                                                                                                                       
|                                                                                                                                                       
|                                                                                                                                                       
|                                                                                                                                                       
|INDEX TO EXHIBITS                                                                                                                                       |  |                                                                                                                      | 63                           |     



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##### 



PART I


Item 1. Business.


The Washington Post Newsweek




Newsweek


Newspaper Publishing


The Washington Post


The Washington Post,


The Post The Post


|     |  |                          |         |        |  |  |           | 
|---- |  | ------------------------ | ------- | ------ |  |  | --------- | 
|     |  | Average Paid Circulation
|     |  |                         
|     |  | Daily                    |         | Sunday
|     |  |                         
|2000 |  |                          | 777,521 |        |  |  | 1,075,918 | 
|    
|    
|    
|    
|2001 |  |                          | 771,614 |        |  |  | 1,066,723 | 
|    
|    
|    
|    
|2002 |  |                          | 767,843 |        |  |  | 1,058,458 | 
|    
|    
|    
|    
|2003 |  |                          | 749,323 |        |  |  | 1,035,204 | 
|    
|    
|    
|    
|2004 |  |                          | 729,981 |        |  |  | 1,016,533 | 





The Post


|                            |                 |      |       |       |      |  |       |       |      |  |       |       |  |  |       |       |  |  |       |       | 
|--------------------------- | --------------- | ---- | ----- | ----- | ---- |  | ----- | ----- | ---- |  | ----- | ----- |  |  | ----- | ----- |  |  | ----- | ----- | 
|                            |                 | 2000 |       |       | 2001 |  | 2002  |       | 2003 |  | 2004 
|                            |                 |     
|Total Inches (in thousands) |                 |      | 3,363 |       |      |  | 2,714 |       |      |  | 2,657 |       |  |  | 2,675 |       |  |  | 2,726 |      
|                           
|                           
|                           
|                           
|                            | Full-Run Inches |      |       | 2,634 |      |  |       | 2,296 |      |  |       | 2,180 |  |  |       | 2,121 |  |  |       | 2,120 | 
|                           
|                           
|                           
|                           
|                            | Part-Run Inches |      |       | 729   |      |  |       | 418   |      |  |       | 477   |  |  |       | 554   |  |  |       | 606   | 
|                           
|                           
|                           
|                           
|Preprints (in millions)     |                 |      | 1,602 |       |      |  | 1,556 |       |      |  | 1,656 |       |  |  | 1,835 |       |  |  | 1,887 |      









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


The Post The Post


Express, Express Express Express


Washingtonpost.Newsweek Interactive


The Washington Post The Post


Newsweek Newsweek


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 Southern Maryland
Newspapers




The Herald


The
Herald The Herald The
Enterprise Newspapers


The Herald The Enterprise Newspapers


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 |       | $ | 130,659,000 |            
|        
|        
|        
|        
|Local    |       |   | 209,256,000 |            
|        
|        
|        
|        
|Network  |       |   | 17,735,000  |            
|         |       |   |             |            
|         | Total |   | $           | 357,650,000 | 
|         |       |   |             |            









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##### 





|                     |  |            |      |             |  |             |      |            |  |                    |         |           |  |  |          |  |  |  |        |  |  |  |        | 
|-------------------- |  | ---------- | ---- | ----------- |  | ----------- | ---- | ---------- |  | ------------------ | ------- | --------- |  |  | -------- |  |  |  | ------ |  |  |  | ------ | 
|Station Location and |  |            |      |             |  |             |      | Expiration |  | Total Commercial  
|Year Commercial      |  | National   |      |             |  | Expiration  |      | Date of    |  | Stations in DMA(b)
|Operation            |  | Market     |      | Network     |  | Date of FCC |      | Network    |  |                   
|Commenced            |  | Ranking(a) |      | Affiliation |  | License     |      | Agreement  |  | Allocated          |         | Operating
|                    
|WDIV                 |  |            | 10th |             |  |             | NBC  |            |  |                    | Oct. 1, |           |  |  | Dec. 31, |  |  |  | VHF-4  |  |  |  | VHF-4  | 
|Detroit, Mich.       |  |            |      |             |  |             |      |            |  |                    | 2005    |           |  |  | 2011     |  |  |  | UHF-6  |  |  |  | UHF-5  | 
|1947                 |  |            |      |             |  |             |      |            |  |                    |         |           |  |  |          |  |  |  |        |  |  |  |        | 
|                    
|KPRC                 |  |            | 11th |             |  |             | NBC  |            |  |                    | Aug. 1, |           |  |  | Dec. 31, |  |  |  | VHF-3  |  |  |  | VHF-3  | 
|Houston, Tx.         |  |            |      |             |  |             |      |            |  |                    | 2006    |           |  |  | 2011     |  |  |  | UHF-11 |  |  |  | UHF-11 | 
|1949                 |  |            |      |             |  |             |      |            |  |                    |         |           |  |  |          |  |  |  |        |  |  |  |        | 
|                    
|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-11 |  |  |  | UHF-10 | 
|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: 2004/2005 DMA Market Rankings, Nielsen Media Research,
    Fall 2004, 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 a timely application to renew the FCC
    license of WPLG and such filing extends the effectiveness of the
    stations existing license until the renewal application is
    acted upon.                                                                                                                                                                                                                                       

Regulation of Broadcasting and Related Matters
















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##### 























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##### 





Cable Television Operations






Regulation of Cable Television and Related Matters




















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##### 





















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Education












---



##### 





















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##### 









Title IV Federal Student Financial Aid Programs


















---



##### 

















Magazine Publishing


Newsweek


Newsweek Newsweek


Newsweek










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##### 



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


Newsweek 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


Arthur Frommers Budget Travel Budget Travel


The Washington
Post


PostNewsweek Tech Media












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##### 



Washington
Technology, Government
Computer News, GCN Technology, Washington
Technology, Government Computer News GCN Technology Federal Technology Almanac, Government Leader


FOSE


Other Activities


Bowater Mersey Paper Company




BrassRing




Production and Raw Materials


The Washington Post Express 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 Post The Post Express








|  |                                                                                                                                                                                                          
|- | ---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------
|* | 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 price
    quotations.









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##### 



The Post Express The
Post Express




Newsweek


Newsweek Budget Travel The Washington Post, Express, The Herald, The
Gazette Newspapers, Southern Maryland Newspapers El
Tiempo Latino


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, The Herald The
Enterprise Newspapers










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##### 



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 Examiner, The Examiner The
Examiner The Gazette
Newspapers, Express The Washington Post, The Examiner




El Tiempo Latino














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##### 







Newsweek








Executive Officers














---



##### 



The Washington Post




Newsweek




The Washington
Post, The
Post


Employees


























---



##### 





Forward-Looking Statements




Available Information


www.washpostco.com


Item 2. Properties.


The Washington Post The
Post The Post The Post




The Herald










---



##### 



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








Budget
Travel


The Washington Post


Slate










---



##### 







Item 3. Legal Proceedings.






|        |                                                     
|------- | ----------------------------------------------------
|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.





|                   |  |      |      |      |     |  |      |      |  |  |      |  |  |  |      | 
|------------------ |  | ---- | ---- | ---- | --- |  | ---- | ---- |  |  | ---- |  |  |  | ---- | 
|                   |  | 2004 |      | 2003
|                   |  |      |      |     
|Quarter            |  | High |      |      | Low |  |      | High |  |  | Low  | 
|                  
|January  March    |  |      | $921 |      |     |  | $790 |      |  |  | $764 |  |  |  | $659 | 
|                  
|                  
|                  
|                  
|April  June       |  |      | 983  |      |     |  | 886  |      |  |  | 741  |  |  |  | 679  | 
|                  
|                  
|                  
|                  
|July  September   |  |      | 956  |      |     |  | 830  |      |  |  | 752  |  |  |  | 650  | 
|                  
|                  
|                  
|                  
|October  December |  |      | 999  |      |     |  | 862  |      |  |  | 820  |  |  |  | 667  | 









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





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





|         |                                                                
|-------- | ---------------------------------------------------------------
|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%
|                                  |             |                                   |  |      |             |      |  |      |             |     
|$                                 | 286,815,000 |                                   |  | $    | 327,789,000 |      |  | $    | 368,762,000 |      |  | $ | 450,710,000 |  |  | $ | 491,683,000 |  |  | $ | 532,657,000 | 



Interest Rate Risk








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





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



Item 9A. Controls and Procedures.


Disclosure Controls and Procedures












---



##### 





Managements Report on Internal Control over Financial
Reporting






Item 9B. Other Information.




PART III




|         |                                                    
|-------- | ---------------------------------------------------
|Item 10. | Directors and Executive Officers of the Registrant.



www.washpostco.com,




Item 11. Executive Compensation.












---



##### 





|         |                                                                                                    
|-------- | ---------------------------------------------------------------------------------------------------
|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 27
    hereof.



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



| |                                                                       
| | ----------------------------------------------------------------------
| | As listed in the index to financial information on page 27
    hereof.



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



| |                                                      
| | -----------------------------------------------------
| | As listed in the index to exhibits on page 63 hereof.









---



##### 



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 2,
2005.




| |                            
| | ---------------------------
| | 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 2, 2005:


|                         |  |                                                                                                  |  | 
|------------------------ |  | ------------------------------------------------------------------------------------------------ |  | 
|                        
|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                                                                                         |  | 
|                        
|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) |                                                                                                                                                |                                        | 28 |   
|                                                                                                     
|                                                                                                     
|                                                                                                     
|                                                                                                     
|                                                                                                     
|Financial Statements and Schedules:                                                                   |                                                                                                                                                |                                        |    |   
|                                                                                                     
|                                                                                                     
|                                                                                                     
|                                                                                                     
|                                                                                                     
|                                                                                                      | Report of Independent Registered Public Accounting Firm                                                                                        |                                        |    | 38 |   
|                                                                                                     
|                                                                                                     
|                                                                                                     
|                                                                                                     
|                                                                                                     
|                                                                                                      | Consolidated Statements of Income and Consolidated Statements of
    Comprehensive Income for the Three Fiscal Years Ended
    January 2, 2005 |                                        |    | 39 |   
|                                                                                                     
|                                                                                                     
|                                                                                                     
|                                                                                                     
|                                                                                                     
|                                                                                                      | Consolidated Balance Sheets at January 2, 2005 and
    December 28, 2003                                                                       |                                        |    | 40 |   
|                                                                                                     
|                                                                                                     
|                                                                                                     
|                                                                                                     
|                                                                                                     
|                                                                                                      | Consolidated Statements of Cash Flows for the Three Fiscal Years
    Ended January 2, 2005                                                     |                                        |    | 42 |   
|                                                                                                     
|                                                                                                     
|                                                                                                     
|                                                                                                     
|                                                                                                     
|                                                                                                      | Consolidated Statements of Changes in Common Shareholders
    Equity for the Three Fiscal Years Ended January 2, 2005                         |                                        |    | 43 |   
|                                                                                                     
|                                                                                                     
|                                                                                                     
|                                                                                                     
|                                                                                                     
|                                                                                                      | Notes to Consolidated Financial Statements                                                                                                     |                                        |    | 44 |   
|                                                                                                     
|                                                                                                     
|                                                                                                     
|                                                                                                     
|                                                                                                     
|                                                                                                      | Financial Statement Schedule for the Three Fiscal Years Ended
    January 2, 2005:                                                             |                                        |    |    |   
|                                                                                                     
|                                                                                                     
|                                                                                                     
|                                                                                                     
|                                                                                                     
|                                                                                                      |                                                                                                                                                | II  Valuation and Qualifying Accounts |    |    | 59 | 
|                                                                                                     
|                                                                                                     
|                                                                                                     
|                                                                                                     
|                                                                                                     
|Ten-Year Summary of Selected Historical Financial Data
    (Unaudited)                                |                                                                                                                                                |                                        | 60 |   














---



##### 



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




OVERVIEW














RESULTS OF OPERATIONS  2004 COMPARED TO
2003














---



##### 











DIVISION RESULTS


Newspaper Publishing Division.










Television Broadcasting Division.






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 | )        |   |  |   |   
|                        |                           |     













---



##### 







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.


RESULTS OF OPERATIONS  2003 COMPARED TO
2002
















---



##### 











DIVISION RESULTS


Newspaper Publishing Division.










Television Broadcasting Division.














---



##### 





Magazine Publishing Division.






Cable Television Division.












|                           |       |      |      |      |      |   |      |      | 
|-------------------------- | ----- | ---- | ---- | ---- | ---- | - | ---- | ---- | 
|                           |       | 2003 |      |      | 2002 |  
|                          
|Customer premise equipment |       | $    | 17.0 |      |      | $ | 27.2 |     
|                          
|                          
|                          
|                          
|Commercial                 |       |      | 0.1  |      |      |   | 0.1  |     
|                          
|                          
|                          
|                          
|Scaleable infrastructure   |       |      | 5.3  |      |      |   | 6.8  |     
|                          
|                          
|                          
|                          
|Line extensions            |       |      | 10.6 |      |      |   | 10.4 |     
|                          
|                          
|                          
|                          
|Upgrade/rebuild            |       |      | 21.4 |      |      |   | 37.4 |     
|                          
|                          
|                          
|                          
|Support capital            |       |      | 11.5 |      |      |   | 10.6 |     
|                           |       |     
|                           | Total |      | $    | 65.9 |      |   | $    | 92.5 | 
|                           |       |     

Education Division.


|                        |                           |      |         |          |      |   |         |          |   |  |    |      |  
|----------------------- | ------------------------- | ---- | ------- | -------- | ---- | - | ------- | -------- | - |  | -- | ---- | -
|                        |                           | 2003 |         |          | 2002 |   |         | % Change |  
|                       
|Revenue                 |                           |      |         |          |      |   |         |          |   |  |    |     
|                       
|                       
|                       
|                       
|                        | Supplemental education    |      | $       | 469,757  |      |   | $       | 371,248  |   |  |    | 27   |  
|                       
|                       
|                       
|                       
|                        | Higher education          |      |         | 368,320  |      |   |         | 249,877  |   |  |    | 47   |  
|                        |                           |     
|                       
|                        |                           | $    | 838,077 |          |      | $ | 621,125 |          |   |  | 35 |     
|                        |                           |     
|                       
|                       
|                       
|                       
|Operating income (loss) |                           |      |         |          |      |   |         |          |   |  |    |     
|                       
|                       
|                       
|                       
|                        | Supplemental education    |      | $       | 87,044   |      |   | $       | 54,103   |   |  |    | 61   |  
|                       
|                       
|                       
|                       
|                        | Higher education          |      |         | 58,428   |      |   |         | 27,569   |   |  |    | 112  |  
|                       
|                       
|                       
|                       
|                        | Kaplan corporate overhead |      |         | (36,782  | )    |   |         | (26,143  | ) |  |    | (41  | )
|                       
|                       
|                       
|                       
|                        | Other                     |      |         | (120,399 | )    |   |         | (35,017  | ) |  |    | (244 | )
|                        |                           |     
|                       
|                        |                           | $    | (11,709 | )        |      | $ | 20,512  |          |   |  |   |     
|                        |                           |     











---



##### 











Corporate Office.


Equity in Losses of Affiliates.




Non-Operating Items.




|                                                            |       |      |      |      |      |   |       |      | 
|----------------------------------------------------------- | ----- | ---- | ---- | ---- | ---- | - | ----- | ---- | 
|                                                            |       | 2003 |      |      | 2002 |  
|                                                           
|Gain on sale of interest in IHT                             |       | $    | 49.8 |      |      | $ |      |     
|                                                           
|                                                           
|                                                           
|                                                           
|Foreign currency gains, net                                 |       |      | 4.2  |      |      |   |      |     
|                                                           
|                                                           
|                                                           
|                                                           
|Impairment write-downs on cost method and other investments |       |      | (1.3 | )    |      |   | (21.2 | )   
|                                                           
|                                                           
|                                                           
|                                                           
|Gain on exchange of cable system business                   |       |      |     |      |      |   | 27.8  |     
|                                                           
|                                                           
|                                                           
|                                                           
|Gain on sale of marketable securities                       |       |      |     |      |      |   | 13.2  |     
|                                                           
|                                                           
|                                                           
|                                                           
|Other gains                                                 |       |      | 2.7  |      |      |   | 9.1   |     
|                                                            |       |     
|                                                            | Total |      | $    | 55.4 |      |   | $     | 28.9 | 
|                                                            |       |     



Income Taxes.


FINANCIAL CONDITION: CAPITAL RESOURCES AND LIQUIDITY


Acquisitions, Exchanges and Dispositions.












---



##### 









Capital Expenditures.


Investments in Marketable Equity Securities.




Common Stock Repurchases and Dividend Rate.


Liquidity.
























---



##### 





Contractual Obligations


(in thousands)


|                                         |  |      |         |      |  |      |         |      |  |      |         |            |  |       |         |  |  |   |         |  |  |   |         |  |  |   |           | 
|---------------------------------------- |  | ---- | ------- | ---- |  | ---- | ------- | ---- |  | ---- | ------- | ---------- |  | ----- | ------- |  |  | - | ------- |  |  | - | ------- |  |  | - | --------- | 
|                                         |  | 2005 |         | 2006 |  | 2007 |         | 2008 |  | 2009 |         | Thereafter |  | Total
|                                         |  |     
|Commercial paper                         |  | $    | 50,201  |      |  | $    |        |      |  | $    |        |            |  | $     |        |  |  | $ |        |  |  | $ |        |  |  | $ | 50,201    | 
|Long-term debt                           |  |      | 8,035   |      |  |      | 24,679  |      |  |      | 1,479   |            |  |       | 407     |  |  |   | 400,224 |  |  |   | 200     |  |  |   | 435,024   | 
|Programming purchase commitments
    (1) |  |      | 126,848 |      |  |      | 115,076 |      |  |      | 105,863 |            |  |       | 85,943  |  |  |   | 58,008  |  |  |   | 216,711 |  |  |   | 708,449   | 
|Operating leases                         |  |      | 80,842  |      |  |      | 75,974  |      |  |      | 71,181  |            |  |       | 61,767  |  |  |   | 52,303  |  |  |   | 154,541 |  |  |   | 496,608   | 
|Other purchase obligations
    (2)       |  |      | 371,973 |      |  |      | 117,614 |      |  |      | 94,653  |            |  |       | 78,058  |  |  |   | 71,615  |  |  |   | 145,003 |  |  |   | 878,916   | 
|Long-term liabilities
    (3)            |  |      | 7,300   |      |  |      | 8,000   |      |  |      | 8,700   |            |  |       | 9,500   |  |  |   | 10,400  |  |  |   | 111,098 |  |  |   | 154,998   | 
|                                         |  |     
|Total                                    |  | $    | 645,199 |      |  | $    | 341,343 |      |  | $    | 281,876 |            |  | $     | 235,675 |  |  | $ | 592,550 |  |  | $ | 627,553 |  |  | $ | 2,724,196 | 
|                                         |  |     






|    |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                              
|--- | -------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------
|(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  
|           
|           
|           
|           
|           
|            | 2005 |          | $       | 250,000 | 
|           
|           
|           
|           
|            | 2006 |          |         |        | 
|           
|           
|           
|           
|            | 2007 |          |         | 350,000 | 
|           
|           
|           
|           
|            | 2008 |          |         |        | 
|           
|           
|           
|           
|            | 2009 |          |         |        | 
|           
|           
|           
|           
|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.










---



##### 





Kaplan Stock Option Plan.






Goodwill and Other Intangibles.


OTHER


New Accounting Pronouncements.












---



##### 



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

















---



##### 



CONSOLIDATED STATEMENTS OF INCOME


|                                                                                                               |                                                            |                   |           |              |   |              |           |           |   |   |           |           |  
|-------------------------------------------------------------------------------------------------------------- | ---------------------------------------------------------- | ----------------- | --------- | ------------ | - | ------------ | --------- | --------- | - | - | --------- | --------- | -
|                                                                                                               |                                                            | Fiscal year ended
|                                                                                                               |                                                            |                  
|                                                                                                               |                                                            | January 2,        |           | December 28, |   | December 29,
|(in thousands, except per share amounts)                                                                       |                                                            | 2005              |           | 2003         |   | 2002        
|                                                                                                              
|                                                                                                              
|                                                                                                              
|                                                                                                              
|                                                                                                              
|Operating Revenues                                                                                             |                                                            |                   |           |              |   |              |           |           |   |   |           |          
|                                                                                                              
|                                                                                                              
|                                                                                                              
|                                                                                                              
|                                                                                                               | Advertising                                                |                   | $         | 1,346,870    |   |              | $         | 1,222,324 |   |   | $         | 1,221,180 |  
|                                                                                                              
|                                                                                                              
|                                                                                                              
|                                                                                                              
|                                                                                                               | Circulation and subscriber                                 |                   |           | 741,810      |   |              |           | 706,248   |   |   |           | 675,136   |  
|                                                                                                              
|                                                                                                              
|                                                                                                              
|                                                                                                              
|                                                                                                               | Education                                                  |                   |           | 1,134,891    |   |              |           | 838,077   |   |   |           | 621,125   |  
|                                                                                                              
|                                                                                                              
|                                                                                                              
|                                                                                                              
|                                                                                                               | Other                                                      |                   |           | 76,533       |   |              |           | 72,262    |   |   |           | 66,762    |  
|                                                                                                               |                                                            |                  
|                                                                                                              
|                                                                                                               |                                                            |                   | 3,300,104 |              |   |              | 2,838,911 |           |   |   | 2,584,203 |          
|                                                                                                               |                                                            |                  
|                                                                                                              
|Operating Costs and Expenses                                                                                   |                                                            |                   |           |              |   |              |           |           |   |   |           |          
|                                                                                                              
|                                                                                                              
|                                                                                                              
|                                                                                                              
|                                                                                                               | Operating                                                  |                   |           | 1,717,059    |   |              |           | 1,549,262 |   |   |           | 1,369,955 |  
|                                                                                                              
|                                                                                                              
|                                                                                                              
|                                                                                                              
|                                                                                                               | Selling, general and administrative                        |                   |           | 835,367      |   |              |           | 792,292   |   |   |           | 664,095   |  
|                                                                                                              
|                                                                                                              
|                                                                                                              
|                                                                                                              
|                                                                                                               | Gain on sale of land                                       |                   |           |             |   |              |           | (41,747   | ) |   |           |          |  
|                                                                                                              
|                                                                                                              
|                                                                                                              
|                                                                                                              
|                                                                                                               | Depreciation of property, plant and equipment              |                   |           | 175,338      |   |              |           | 173,848   |   |   |           | 171,908   |  
|                                                                                                              
|                                                                                                              
|                                                                                                              
|                                                                                                              
|                                                                                                               | Amortization of goodwill and other intangibles             |                   |           | 9,334        |   |              |           | 1,436     |   |   |           | 655       |  
|                                                                                                               |                                                            |                  
|                                                                                                              
|                                                                                                               |                                                            |                   | 2,737,098 |              |   |              | 2,475,091 |           |   |   | 2,206,613 |          
|                                                                                                               |                                                            |                  
|Income from Operations                                                                                         |                                                            |                   | 563,006   |              |   |              | 363,820   |           |   |   | 377,590   |          
|                                                                                                              
|                                                                                                              
|                                                                                                              
|                                                                                                              
|                                                                                                               | Equity in losses of affiliates                             |                   |           | (2,291       | ) |              |           | (9,766    | ) |   |           | (19,308   | )
|                                                                                                              
|                                                                                                              
|                                                                                                              
|                                                                                                              
|                                                                                                               | Interest income                                            |                   |           | 1,622        |   |              |           | 953       |   |   |           | 332       |  
|                                                                                                              
|                                                                                                              
|                                                                                                              
|                                                                                                              
|                                                                                                               | Interest expense                                           |                   |           | (28,032      | ) |              |           | (27,804   | ) |   |           | (33,819   | )
|                                                                                                              
|                                                                                                              
|                                                                                                              
|                                                                                                              
|                                                                                                               | Other income (expense), net                                |                   |           | 8,127        |   |              |           | 55,385    |   |   |           | 28,873    |  
|                                                                                                               |                                                            |                  
|Income Before Income Taxes and Cumulative Effect of Change in
    Accounting Principle                         |                                                            |                   | 542,432   |              |   |              | 382,588   |           |   |   | 353,668   |          
|                                                                                                              
|                                                                                                              
|                                                                                                              
|                                                                                                              
|Provision for Income Taxes                                                                                     |                                                            |                   | 209,700   |              |   |              | 141,500   |           |   |   | 137,300   |          
|                                                                                                               |                                                            |                  
|Income Before Cumulative Effect of Change in Accounting
    Principle                                          |                                                            |                   | 332,732   |              |   |              | 241,088   |           |   |   | 216,368   |          
|                                                                                                              
|                                                                                                              
|                                                                                                              
|                                                                                                              
|Cumulative Effect of Change in Method of Accounting for
    Goodwill and Other Intangible Assets, Net of Taxes |                                                            |                   |          |              |   |              |          |           |   |   | (12,100   | )        
|                                                                                                               |                                                            |                  
|Net Income                                                                                                     |                                                            |                   | 332,732   |              |   |              | 241,088   |           |   |   | 204,268   |          
|                                                                                                              
|                                                                                                              
|                                                                                                              
|                                                                                                              
|Redeemable Preferred Stock Dividends                                                                           |                                                            |                   | (992      | )            |   |              | (1,027    | )         |   |   | (1,033    | )        
|                                                                                                               |                                                            |                  
|Net Income Available for Common Shares                                                                         |                                                            | $                 | 331,740   |              |   | $            | 240,061   |           |   | $ | 203,235   |          
|                                                                                                               |                                                            |                  
|Basic Earnings per Common Share:                                                                               |                                                            |                   |           |              |   |              |           |           |   |   |           |          
|                                                                                                              
|                                                                                                              
|                                                                                                              
|                                                                                                              
|                                                                                                               | Before Cumulative Effect of Change in Accounting Principle |                   | $         | 34.69        |   |              | $         | 25.19     |   |   | $         | 22.65     |  
|                                                                                                              
|                                                                                                              
|                                                                                                              
|                                                                                                              
|                                                                                                               | Cumulative Effect of Change in Accounting Principle        |                   |           |             |   |              |           |          |   |   |           | (1.27     | )
|                                                                                                               |                                                            |                  
|                                                                                                               | Net Income Available for Common Shares                     |                   | $         | 34.69        |   |              | $         | 25.19     |   |   | $         | 21.38     |  
|                                                                                                               |                                                            |                  
|Diluted Earnings per Common Share:                                                                             |                                                            |                   |           |              |   |              |           |           |   |   |           |          
|                                                                                                              
|                                                                                                              
|                                                                                                              
|                                                                                                              
|                                                                                                               | Before Cumulative Effect of Change in Accounting Principle |                   | $         | 34.59        |   |              | $         | 25.12     |   |   | $         | 22.61     |  
|                                                                                                              
|                                                                                                              
|                                                                                                              
|                                                                                                              
|                                                                                                               | Cumulative Effect of Change in Accounting Principle        |                   |           |             |   |              |           |          |   |   |           | (1.27     | )
|                                                                                                               |                                                            |                  
|                                                                                                               | Net Income Available for Common Shares                     |                   | $         | 34.59        |   |              | $         | 25.12     |   |   | $         | 21.34     |  
|                                                                                                               |                                                            |                  

CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME


|                                                                                            |                                                                                         |                   |         |              |   |              |         |         |   |   |         |         |  
|------------------------------------------------------------------------------------------- | --------------------------------------------------------------------------------------- | ----------------- | ------- | ------------ | - | ------------ | ------- | ------- | - | - | ------- | ------- | -
|                                                                                            |                                                                                         | Fiscal year ended
|                                                                                            |                                                                                         |                  
|                                                                                            |                                                                                         | January 2,        |         | December 28, |   | December 29,
|(in thousands)                                                                              |                                                                                         | 2005              |         | 2003         |   | 2002        
|                                                                                           
|                                                                                           
|                                                                                           
|                                                                                           
|                                                                                           
|Net Income                                                                                  |                                                                                         | $                 | 332,732 |              |   | $            | 241,088 |         |   | $ | 204,268 |        
|                                                                                           
|                                                                                           
|                                                                                           
|                                                                                           
|Other Comprehensive Income (Loss)                                                           |                                                                                         |                   |         |              |   |              |         |         |   |   |         |        
|                                                                                           
|                                                                                           
|                                                                                           
|                                                                                           
|                                                                                            | Foreign currency translation adjustments                                                |                   |         | 9,601        |   |              |         | 13,416  |   |   |         | 2,167   |  
|                                                                                           
|                                                                                           
|                                                                                           
|                                                                                           
|                                                                                            | Reclassification adjustment on sale of affiliate investment                             |                   |         |             |   |              |         | (1,633  | ) |   |         |        |  
|                                                                                           
|                                                                                           
|                                                                                           
|                                                                                           
|                                                                                            | Change in net unrealized gain on available-for-sale securities                          |                   |         | 63,022       |   |              |         | 31,426  |   |   |         | 829     |  
|                                                                                           
|                                                                                           
|                                                                                           
|                                                                                           
|                                                                                            | Less reclassification adjustment for realized (gains) losses
    included in net income |                   |         | (202         | ) |              |         | 214     |   |   |         | (11,209 | )
|                                                                                            |                                                                                         |                  
|                                                                                           
|                                                                                            |                                                                                         |                   | 72,421  |              |   |              | 43,423  |         |   |   | (8,213  | )      
|                                                                                           
|                                                                                           
|                                                                                           
|                                                                                           
|                                                                                            | Income tax (expense) benefit related to other comprehensive
    income (loss)           |                   |         | (24,577      | ) |              |         | (12,348 | ) |   |         | 4,012   |  
|                                                                                            |                                                                                         |                  
|                                                                                           
|                                                                                            |                                                                                         |                   | 47,844  |              |   |              | 31,075  |         |   |   | (4,201  | )      
|                                                                                            |                                                                                         |                  
|Comprehensive Income                                                                        |                                                                                         | $                 | 380,576 |              |   | $            | 272,163 |         |   | $ | 200,067 |        
|                                                                                            |                                                                                         |                  
|The information on pages 44 through 57 is an integral part of
    the financial statements. |                                                                                         |                   |         |              |   |              |         |        









---



##### 



CONSOLIDATED BALANCE SHEETS


|                                                                                            |                                             |            |           |              |   |   |           |            |  
|------------------------------------------------------------------------------------------- | ------------------------------------------- | ---------- | --------- | ------------ | - | - | --------- | ---------- | -
|                                                                                            |                                             | January 2, |           | December 28,
|(in thousands)                                                                              |                                             | 2005       |           | 2003        
|                                                                                           
|Assets                                                                                      |                                             |            |           |              |   |   |           |           
|                                                                                           
|                                                                                           
|                                                                                           
|                                                                                           
|Current Assets                                                                              |                                             |            |           |              |   |   |           |           
|                                                                                           
|                                                                                           
|                                                                                           
|                                                                                           
|                                                                                            | Cash and cash equivalents                   |            | $         | 119,400      |   |   | $         | 116,561    |  
|                                                                                           
|                                                                                           
|                                                                                           
|                                                                                           
|                                                                                            | Investments in marketable equity securities |            |           | 149,303      |   |   |           | 2,623      |  
|                                                                                           
|                                                                                           
|                                                                                           
|                                                                                           
|                                                                                            | Accounts receivable, net                    |            |           | 362,862      |   |   |           | 328,816    |  
|                                                                                           
|                                                                                           
|                                                                                           
|                                                                                           
|                                                                                            | Federal and state income taxes              |            |           | 18,375       |   |   |           | 5,318      |  
|                                                                                           
|                                                                                           
|                                                                                           
|                                                                                           
|                                                                                            | Deferred income taxes                       |            |           | 30,871       |   |   |           | 31,376     |  
|                                                                                           
|                                                                                           
|                                                                                           
|                                                                                           
|                                                                                            | Inventories                                 |            |           | 25,127       |   |   |           | 27,709     |  
|                                                                                           
|                                                                                           
|                                                                                           
|                                                                                           
|                                                                                            | Other current assets                        |            |           | 48,429       |   |   |           | 43,933     |  
|                                                                                            |                                             |           
|                                                                                           
|                                                                                            |                                             |            | 754,367   |              |   |   | 556,336   |           
|                                                                                           
|                                                                                           
|                                                                                           
|                                                                                           
|Property, Plant and Equipment                                                               |                                             |            |           |              |   |   |           |           
|                                                                                           
|                                                                                           
|                                                                                           
|                                                                                           
|                                                                                            | Buildings                                   |            |           | 304,606      |   |   |           | 288,961    |  
|                                                                                           
|                                                                                           
|                                                                                           
|                                                                                           
|                                                                                            | Machinery, equipment and fixtures           |            |           | 1,730,997    |   |   |           | 1,656,111  |  
|                                                                                           
|                                                                                           
|                                                                                           
|                                                                                           
|                                                                                            | Leasehold improvements                      |            |           | 133,674      |   |   |           | 102,753    |  
|                                                                                            |                                             |           
|                                                                                           
|                                                                                            |                                             |            | 2,169,277 |              |   |   | 2,047,825 |           
|                                                                                           
|                                                                                           
|                                                                                           
|                                                                                           
|                                                                                            | Less accumulated depreciation               |            |           | (1,197,375   | ) |   |           | (1,084,790 | )
|                                                                                            |                                             |           
|                                                                                           
|                                                                                            |                                             |            | 971,902   |              |   |   | 963,035   |           
|                                                                                           
|                                                                                           
|                                                                                           
|                                                                                           
|                                                                                            | Land                                        |            |           | 37,470       |   |   |           | 36,491     |  
|                                                                                           
|                                                                                           
|                                                                                           
|                                                                                           
|                                                                                            | Construction in progress                    |            |           | 80,580       |   |   |           | 56,104     |  
|                                                                                            |                                             |           
|                                                                                           
|                                                                                            |                                             |            | 1,089,952 |              |   |   | 1,055,630 |           
|                                                                                           
|                                                                                           
|                                                                                           
|                                                                                           
|Investments in Marketable Equity Securities                                                 |                                             |            | 260,433   |              |   |   | 245,335   |           
|                                                                                           
|                                                                                           
|                                                                                           
|                                                                                           
|Investments in Affiliates                                                                   |                                             |            | 61,814    |              |   |   | 61,312    |           
|                                                                                           
|                                                                                           
|                                                                                           
|                                                                                           
|Goodwill, Net                                                                               |                                             |            | 1,023,140 |              |   |   | 965,694   |           
|                                                                                           
|                                                                                           
|                                                                                           
|                                                                                           
|Indefinite-Lived Intangible Assets, Net                                                     |                                             |            | 493,192   |              |   |   | 486,656   |           
|                                                                                           
|                                                                                           
|                                                                                           
|                                                                                           
|Amortized Intangible Assets, Net                                                            |                                             |            | 7,879     |              |   |   | 5,226     |           
|                                                                                           
|                                                                                           
|                                                                                           
|                                                                                           
|Prepaid Pension Cost                                                                        |                                             |            | 556,747   |              |   |   | 514,801   |           
|                                                                                           
|                                                                                           
|                                                                                           
|                                                                                           
|Deferred Charges and Other Assets                                                           |                                             |            | 69,117    |              |   |   | 71,068    |           
|                                                                                            |                                             |           
|                                                                                           
|                                                                                            |                                             | $          | 4,316,641 |              |   | $ | 3,962,058 |           
|                                                                                            |                                             |           
|The information on pages 44 through 57 is an integral part of
    the financial statements. |                                             |            |           |             









---



##### 





|                                                                                                                                                                                                      |                                                                                       |                                                                                                                                                |           |              |        |   |           |            |        | 
|----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------- | ------------------------------------------------------------------------------------- | ---------------------------------------------------------------------------------------------------------------------------------------------- | --------- | ------------ | ------ | - | --------- | ---------- | ------ | 
|                                                                                                                                                                                                      |                                                                                       | January 2,                                                                                                                                     |           | December 28,
|(in thousands, except share amounts)                                                                                                                                                                  |                                                                                       | 2005                                                                                                                                           |           | 2003        
|                                                                                                                                                                                                     
|Liabilities and Shareholders Equity                                                                                                                                                                  |                                                                                       |                                                                                                                                                |           |              |        |   |           |           
|                                                                                                                                                                                                     
|                                                                                                                                                                                                     
|                                                                                                                                                                                                     
|                                                                                                                                                                                                     
|Current Liabilities                                                                                                                                                                                   |                                                                                       |                                                                                                                                                |           |              |        |   |           |           
|                                                                                                                                                                                                     
|                                                                                                                                                                                                     
|                                                                                                                                                                                                     
|                                                                                                                                                                                                     
|                                                                                                                                                                                                      | Accounts payable and accrued liabilities                                              |                                                                                                                                                | $         | 443,332      |        |   | $         | 368,363    |       
|                                                                                                                                                                                                     
|                                                                                                                                                                                                     
|                                                                                                                                                                                                     
|                                                                                                                                                                                                     
|                                                                                                                                                                                                      | Deferred revenue                                                                      |                                                                                                                                                |           | 186,593      |        |   |           | 164,014    |       
|                                                                                                                                                                                                     
|                                                                                                                                                                                                     
|                                                                                                                                                                                                     
|                                                                                                                                                                                                     
|                                                                                                                                                                                                      | Short-term borrowings                                                                 |                                                                                                                                                |           | 58,236       |        |   |           | 208,620    |       
|                                                                                                                                                                                                      |                                                                                       |                                                                                                                                               
|                                                                                                                                                                                                     
|                                                                                                                                                                                                      |                                                                                       |                                                                                                                                                | 688,161   |              |        |   | 740,997   |           
|                                                                                                                                                                                                     
|                                                                                                                                                                                                     
|                                                                                                                                                                                                     
|                                                                                                                                                                                                     
|Postretirement Benefits Other Than Pensions                                                                                                                                                           |                                                                                       |                                                                                                                                                | 145,490   |              |        |   | 140,740   |           
|                                                                                                                                                                                                     
|                                                                                                                                                                                                     
|                                                                                                                                                                                                     
|                                                                                                                                                                                                     
|Other Liabilities                                                                                                                                                                                     |                                                                                       |                                                                                                                                                | 228,654   |              |        |   | 235,169   |           
|                                                                                                                                                                                                     
|                                                                                                                                                                                                     
|                                                                                                                                                                                                     
|                                                                                                                                                                                                     
|Deferred Income Taxes                                                                                                                                                                                 |                                                                                       |                                                                                                                                                | 403,698   |              |        |   | 335,200   |           
|                                                                                                                                                                                                     
|                                                                                                                                                                                                     
|                                                                                                                                                                                                     
|                                                                                                                                                                                                     
|Long-Term Debt                                                                                                                                                                                        |                                                                                       |                                                                                                                                                | 425,889   |              |        |   | 422,471   |           
|                                                                                                                                                                                                      |                                                                                       |                                                                                                                                               
|                                                                                                                                                                                                     
|                                                                                                                                                                                                      |                                                                                       |                                                                                                                                                | 1,891,892 |              |        |   | 1,874,577 |           
|                                                                                                                                                                                                      |                                                                                       |                                                                                                                                               
|                                                                                                                                                                                                     
|                                                                                                                                                                                                     
|                                                                                                                                                                                                     
|                                                                                                                                                                                                     
|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 and 12,540 shares issued and
    outstanding |                                                                                       |                                                                                                                                                | 12,267    |              |        |   | 12,540    |           
|                                                                                                                                                                                                      |                                                                                       |                                                                                                                                               
|                                                                                                                                                                                                     
|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; 7,853,822 and 7,819,330
    shares outstanding |           |              | 18,278 |   |           |            | 18,278 | 
|                                                                                                                                                                                                     
|                                                                                                                                                                                                     
|                                                                                                                                                                                                     
|                                                                                                                                                                                                     
|                                                                                                                                                                                                      | Capital in excess of par value                                                        |                                                                                                                                                |           | 186,827      |        |   |           | 166,951    |       
|                                                                                                                                                                                                     
|                                                                                                                                                                                                     
|                                                                                                                                                                                                     
|                                                                                                                                                                                                     
|                                                                                                                                                                                                      | Retained earnings                                                                     |                                                                                                                                                |           | 3,629,222    |        |   |           | 3,364,407  |       
|                                                                                                                                                                                                      | Accumulated other comprehensive income, net of taxes                                  |                                                                                                                                                |           |              |        |   |           |            |       
|                                                                                                                                                                                                     
|                                                                                                                                                                                                     
|                                                                                                                                                                                                     
|                                                                                                                                                                                                     
|                                                                                                                                                                                                      |                                                                                       | Cumulative foreign currency translation adjustment                                                                                             |           |              | 13,873 |   |           |            | 4,272  | 
|                                                                                                                                                                                                     
|                                                                                                                                                                                                     
|                                                                                                                                                                                                     
|                                                                                                                                                                                                     
|                                                                                                                                                                                                      |                                                                                       | Unrealized gain on available-for-sale securities                                                                                               |           |              | 75,448 |   |           |            | 37,205 | 
|                                                                                                                                                                                                     
|                                                                                                                                                                                                     
|                                                                                                                                                                                                     
|                                                                                                                                                                                                     
|                                                                                                                                                                                                      | Cost of 10,423,928 and 10,458,420 shares of Class B common
    stock held in treasury |                                                                                                                                                |           | (1,512,888   | )      |   |           | (1,517,894 | )     
|                                                                                                                                                                                                      |                                                                                       |                                                                                                                                               
|                                                                                                                                                                                                     
|                                                                                                                                                                                                      |                                                                                       |                                                                                                                                                | 2,412,482 |              |        |   | 2,074,941 |           
|                                                                                                                                                                                                      |                                                                                       |                                                                                                                                               
|                                                                                                                                                                                                     
|                                                                                                                                                                                                      |                                                                                       | $                                                                                                                                              | 4,316,641 |              |        | $ | 3,962,058 |           
|                                                                                                                                                                                                      |                                                                                       |                                                                                                                                               
|The information on pages 44 through 57 is an integral part of
    the financial statements.                                                                                                           |                                                                                       |                                                                                                                                                |           |             









---



##### 



CONSOLIDATED STATEMENTS OF CASH FLOWS


|                                                     |                                                                                       |                                                                                          |                                                                 |              |          |         |              |          |          |         |        |          |          |         |  
|---------------------------------------------------- | ------------------------------------------------------------------------------------- | ---------------------------------------------------------------------------------------- | --------------------------------------------------------------- | ------------ | -------- | ------- | ------------ | -------- | -------- | ------- | ------ | -------- | -------- | ------- | -
|                                                     |                                                                                       | Fiscal year ended                                                                       
|                                                     |                                                                                       |                                                                                         
|                                                     |                                                                                       | January 2,                                                                               |                                                                 | December 28, |          |         | December 29, |         
|(in thousands)                                       |                                                                                       | 2005                                                                                     |                                                                 | 2003         |          | 2002   
|                                                    
|Cash Flows from Operating Activities:                |                                                                                       |                                                                                          |                                                                 |              |          |         |              |          |          |         |        |         
|                                                    
|                                                    
|                                                    
|                                                    
|                                                     | Net income                                                                            |                                                                                          | $                                                               | 332,732      |          |         | $            | 241,088  |          |         | $      | 204,268  |         
|                                                    
|                                                    
|                                                    
|                                                    
|                                                     | Adjustments to reconcile net income to net cash provided by
    operating activities: |                                                                                          |                                                                 |              |          |         |              |          |          |         |        |          |         
|                                                    
|                                                    
|                                                    
|                                                    
|                                                     |                                                                                       | Cumulative effect of change in accounting principle                                      |                                                                 |              |         |         |              |          |         |         |        |          | 12,100   |        
|                                                    
|                                                    
|                                                    
|                                                    
|                                                     |                                                                                       | Depreciation of property, plant and equipment                                            |                                                                 |              | 175,338  |         |              |          | 173,848  |         |        |          | 171,908  |        
|                                                    
|                                                    
|                                                    
|                                                    
|                                                     |                                                                                       | Amortization of goodwill and other intangibles                                           |                                                                 |              | 9,334    |         |              |          | 1,436    |         |        |          | 655      |        
|                                                    
|                                                    
|                                                    
|                                                    
|                                                     |                                                                                       | Net pension benefit                                                                      |                                                                 |              | (41,954  | )       |              |          | (55,137  | )       |        |          | (64,447  | )      
|                                                    
|                                                    
|                                                    
|                                                    
|                                                     |                                                                                       | Early retirement program expense                                                         |                                                                 |              | 132      |         |              |          | 34,135   |         |        |          | 19,001   |        
|                                                    
|                                                    
|                                                    
|                                                    
|                                                     |                                                                                       | Gain from sale or exchange of businesses                                                 |                                                                 |              | (497     | )       |              |          | (49,762  | )       |        |          | (27,844  | )      
|                                                    
|                                                    
|                                                    
|                                                    
|                                                     |                                                                                       | Gain on sale of property, plant and equipment                                            |                                                                 |              | (2,669   | )       |              |          | (41,734  | )       |        |          |         |        
|                                                    
|                                                    
|                                                    
|                                                    
|                                                     |                                                                                       | Gain on disposition of marketable equity securities and cost
    method investments, net |                                                                 |              |         |         |              |          |         |         |        |          | (13,209  | )      
|                                                    
|                                                    
|                                                    
|                                                    
|                                                     |                                                                                       | Cost method investment and other write-downs                                             |                                                                 |              | 677      |         |              |          | 1,337    |         |        |          | 21,194   |        
|                                                    
|                                                    
|                                                    
|                                                    
|                                                     |                                                                                       | Equity in losses of affiliates, net of distributions                                     |                                                                 |              | 3,091    |         |              |          | 10,516   |         |        |          | 20,018   |        
|                                                    
|                                                    
|                                                    
|                                                    
|                                                     |                                                                                       | Foreign exchange gain                                                                    |                                                                 |              | (5,505   | )       |              |          | (4,187   | )       |        |          |         |        
|                                                    
|                                                    
|                                                    
|                                                    
|                                                     |                                                                                       | Provision for deferred income taxes                                                      |                                                                 |              | 44,321   |         |              |          | 30,704   |         |        |          | 50,115   |        
|                                                    
|                                                    
|                                                    
|                                                    
|                                                     |                                                                                       | Change in assets and liabilities:                                                        |                                                                 |              |          |         |              |          |          |         |        |          |          |        
|                                                    
|                                                    
|                                                    
|                                                    
|                                                     |                                                                                       |                                                                                          | Increase in accounts receivable, net                            |              |          | (23,722 | )            |          |          | (9,936  | )      |          |          | (1,116  | )
|                                                    
|                                                    
|                                                    
|                                                    
|                                                     |                                                                                       |                                                                                          | Decrease (increase) in inventories                              |              |          | 2,640   |              |          |          | 829     |        |          |          | (11,142 | )
|                                                    
|                                                    
|                                                    
|                                                    
|                                                     |                                                                                       |                                                                                          | Increase (decrease) in accounts payable and accrued liabilities |              |          | 70,058  |              |          |          | (14,308 | )      |          |          | 73,653  |  
|                                                    
|                                                    
|                                                    
|                                                    
|                                                     |                                                                                       |                                                                                          | (Increase) decrease in income taxes receivable                  |              |          | (13,079 | )            |          |          | (10,171 | )      |          |          | 15,106  |  
|                                                    
|                                                    
|                                                    
|                                                    
|                                                     |                                                                                       |                                                                                          | Decrease in other assets and other liabilities, net             |              |          | 3,477   |              |          |          | 34,460  |        |          |          | 21,360  |  
|                                                    
|                                                    
|                                                    
|                                                    
|                                                     |                                                                                       | Other                                                                                    |                                                                 |              | 7,347    |         |              |          | (5,404   | )       |        |          | 5,846    |        
|                                                     |                                                                                       |                                                                                         
|                                                    
|                                                     |                                                                                       |                                                                                          | Net cash provided by operating activities                       |              |          | 561,721 |              |          |          | 337,714 |        |          |          | 497,466 |  
|                                                     |                                                                                       |                                                                                         
|                                                    
|                                                    
|                                                    
|                                                    
|Cash Flows from Investing Activities:                |                                                                                       |                                                                                          |                                                                 |              |          |         |              |          |          |         |        |         
|                                                    
|                                                    
|                                                    
|                                                    
|                                                     | Investments in certain businesses                                                     |                                                                                          |                                                                 | (55,232      | )        |         |              | (134,541 | )        |         |        | (36,016  | )       
|                                                    
|                                                    
|                                                    
|                                                    
|                                                     | Net proceeds from sale of businesses                                                  |                                                                                          |                                                                 |             |          |         |              | 65,000   |          |         |        |         |         
|                                                    
|                                                    
|                                                    
|                                                    
|                                                     | Purchases of property, plant and equipment                                            |                                                                                          |                                                                 | (204,632     | )        |         |              | (125,588 | )        |         |        | (152,992 | )       
|                                                    
|                                                    
|                                                    
|                                                    
|                                                     | Proceeds from sale of property, plant and equipment                                   |                                                                                          |                                                                 | 5,340        |          |         |              | 44,973   |          |         |        | 1,484    |         
|                                                    
|                                                    
|                                                    
|                                                    
|                                                     | Purchases of cost method investments                                                  |                                                                                          |                                                                 | (224         | )        |         |              | (849     | )        |         |        | (250     | )       
|                                                    
|                                                    
|                                                    
|                                                    
|                                                     | Investments in affiliates                                                             |                                                                                          |                                                                 |             |          |         |              | (5,976   | )        |         |        | (7,610   | )       
|                                                    
|                                                    
|                                                    
|                                                    
|                                                     | Purchases of marketable equity securities                                             |                                                                                          |                                                                 | (94,560      | )        |         |              |         |          |         |        |         |         
|                                                    
|                                                    
|                                                    
|                                                    
|                                                     | Proceeds from sale of marketable equity securities                                    |                                                                                          |                                                                 |             |          |         |              |         |          |         |        | 19,701   |         
|                                                     |                                                                                       |                                                                                         
|                                                    
|                                                     |                                                                                       | Net cash used in investing activities                                                    |                                                                 |              | (349,308 | )       |              |          | (156,981 | )       |        |          | (175,683 | )      
|                                                     |                                                                                       |                                                                                         
|                                                    
|                                                    
|                                                    
|                                                    
|Cash Flows from Financing Activities:                |                                                                                       |                                                                                          |                                                                 |              |          |         |              |          |          |         |        |         
|                                                    
|                                                    
|                                                    
|                                                    
|                                                     | Repayment of commercial paper, net                                                    |                                                                                          |                                                                 | (138,116     | )        |         |              | (70,942  | )        |         |        | (276,189 | )       
|                                                    
|                                                    
|                                                    
|                                                    
|                                                     | Principal payments on debt                                                            |                                                                                          |                                                                 | (19,253      | )        |         |              | (784     | )        |         |        |         |         
|                                                    
|                                                    
|                                                    
|                                                    
|                                                     | Dividends paid                                                                        |                                                                                          |                                                                 | (67,917      | )        |         |              | (56,289  | )        |         |        | (54,256  | )       
|                                                    
|                                                    
|                                                    
|                                                    
|                                                     | Common shares repurchased                                                             |                                                                                          |                                                                 |             |          |         |              | (687     | )        |         |        | (786     | )       
|                                                    
|                                                    
|                                                    
|                                                    
|                                                     | Proceeds from exercise of stock options                                               |                                                                                          |                                                                 | 15,616       |          |         |              | 5,898    |          |         |        | 6,739    |         
|                                                    
|                                                    
|                                                    
|                                                    
|                                                     | Other                                                                                 |                                                                                          |                                                                 | (1,953       | )        |         |              | 1,245    |          |         |        | (1,867   | )       
|                                                     |                                                                                       |                                                                                         
|                                                    
|                                                     |                                                                                       | Net cash used in financing activities                                                    |                                                                 |              | (211,623 | )       |              |          | (121,559 | )       |        |          | (326,359 | )      
|                                                     |                                                                                       |                                                                                         
|                                                    
|                                                    
|                                                    
|                                                    
|Effect of Currency Exchange Rate Change              |                                                                                       |                                                                                          | 2,049                                                           |              |          |         | 737          |          |          |         |       |         
|                                                     |                                                                                       |                                                                                         
|                                                    
|Net Increase (Decrease) in Cash and Cash Equivalents |                                                                                       |                                                                                          | 2,839                                                           |              |          |         | 59,911       |          |          |         | (4,576 | )       
|                                                    
|                                                    
|                                                    
|                                                    
|Cash and Cash Equivalents at Beginning of Year       |                                                                                       |                                                                                          | 116,561                                                         |              |          |         | 56,650       |          |          |         | 61,226 |         
|                                                     |                                                                                       |                                                                                         
|                                                    
|                                                    
|                                                    
|                                                    
|Cash and Cash Equivalents at End of Year             |                                                                                       | $                                                                                        | 119,400                                                         |              |          | $       | 116,561      |          |          | $       | 56,650 |         
|                                                     |                                                                                       |                                                                                         
|                                                    
|                                                    
|                                                    
|                                                    
|Supplemental Cash Flow Information:                  |                                                                                       |                                                                                          |                                                                 |              |          |         |              |          |          |         |        |         
|                                                    
|                                                    
|                                                    
|                                                    
|                                                     | Cash paid during the year for:                                                        |                                                                                          |                                                                 |              |          |         |              |          |          |         |        |          |         
|                                                    
|                                                    
|                                                    
|                                                    
|                                                     |                                                                                       | Income taxes                                                                             |                                                                 | $            | 171,400  |         |              | $        | 116,900  |         |        | $        | 68,900   |        
|                                                    
|                                                    
|                                                    
|                                                    
|                                                     |                                                                                       | Interest, net of amounts capitalized                                                     |                                                                 | $            | 25,500   |         |              | $        | 27,500   |         |        | $        | 30,600   |        











---



##### 



CONSOLIDATED STATEMENTS OF CHANGES IN COMMON
SHAREHOLDERS EQUITY


|                                                                                            |                                                                                                  |         |       |         |  |            |        |          |  |             |         |            |  |                |           |         |   |   |        |        |  |   |        |        |   |   |            |       |  
|------------------------------------------------------------------------------------------- | ------------------------------------------------------------------------------------------------ | ------- | ----- | ------- |  | ---------- | ------ | -------- |  | ----------- | ------- | ---------- |  | -------------- | --------- | ------- | - | - | ------ | ------ |  | - | ------ | ------ | - | - | ---------- | ----- | -
|                                                                                            |                                                                                                  |         |       |         |  |            |        |          |  | Cumulative  |         | Unrealized |  |               
|                                                                                            |                                                                                                  |         |       |         |  |            |        |          |  | Foreign     |         | Gain on    |  |               
|                                                                                            |                                                                                                  | Class A |       | Class B |  | Capital in |        |          |  | Currency    |         | Available- |  |               
|                                                                                            |                                                                                                  | Common  |       | Common  |  | Excess of  |        | Retained |  | Translation |         | for-Sale   |  |               
|(in thousands)                                                                              |                                                                                                  | Stock   |       | Stock   |  | Par Value  |        | Earnings |  | Adjustment  |         | Securities |  | Treasury Stock
|                                                                                           
|Balance, December 30, 2001                                                                  |                                                                                                  | $       | 1,722 |         |  | $          | 18,278 |          |  | $           | 142,814 |            |  | $              | 3,029,595 |         |   | $ | (9,678 | )      |  | $ | 24,281 |        |   | $ | (1,523,527 | )    
|                                                                                           
|                                                                                           
|                                                                                           
|                                                                                           
|                                                                                            | Net income for the year                                                                          |         |       |         |  |            |        |          |  |             |         |            |  |                |           | 204,268 |   |   |        |        |  |   |        |        |   |   |            |       |  
|                                                                                           
|                                                                                           
|                                                                                           
|                                                                                           
|                                                                                            | Dividends paid on common stock  $5.60 per share                                                 |         |       |         |  |            |        |          |  |             |         |            |  |                |           | (53,223 | ) |   |        |        |  |   |        |        |   |   |            |       |  
|                                                                                           
|                                                                                           
|                                                                                           
|                                                                                           
|                                                                                            | Dividends paid on redeemable preferred stock                                                     |         |       |         |  |            |        |          |  |             |         |            |  |                |           | (1,033  | ) |   |        |        |  |   |        |        |   |   |            |       |  
|                                                                                           
|                                                                                           
|                                                                                           
|                                                                                           
|                                                                                            | Repurchase of 1,229 shares of Class B common stock                                               |         |       |         |  |            |        |          |  |             |         |            |  |                |           |         |   |   |        |        |  |   |        |        |   |   |            | (786  | )
|                                                                                           
|                                                                                           
|                                                                                           
|                                                                                           
|                                                                                            | Issuance of 17,156 shares of Class B common stock, net of
    restricted stock award forfeitures |         |       |         |  |            |        |          |  |             |         | 4,440      |  |                |           |         |   |   |        |        |  |   |        |        |   |   |            | 2,507 |  
|                                                                                           
|                                                                                           
|                                                                                           
|                                                                                           
|                                                                                            | Change in foreign currency translation adjustment (net of taxes)                                 |         |       |         |  |            |        |          |  |             |         |            |  |                |           |         |   |   |        | 2,167  |  |   |        |        |   |   |            |       |  
|                                                                                           
|                                                                                           
|                                                                                           
|                                                                                           
|                                                                                            | Change in unrealized gain on available-for-sale securities (net
    of taxes)                    |         |       |         |  |            |        |          |  |             |         |            |  |                |           |         |   |   |        |        |  |   |        | (6,368 | ) |   |            |       |  
|                                                                                           
|                                                                                           
|                                                                                           
|                                                                                           
|                                                                                            | Stock option expense                                                                             |         |       |         |  |            |        |          |  |             |         | 45         |  |                |           |         |   |   |        |        |  |   |        |        |   |   |            |       |  
|                                                                                           
|                                                                                           
|                                                                                           
|                                                                                           
|                                                                                            | Tax benefits arising from employee stock plans                                                   |         |       |         |  |            |        |          |  |             |         | 1,791      |  |                |           |         |   |   |        |        |  |   |        |        |   |   |            |       |  
|                                                                                            |                                                                                                  |        
|                                                                                           
|Balance, December 29, 2002.                                                                 |                                                                                                  |         | 1,722 |         |  |            | 18,278 |          |  |             | 149,090 |            |  |                | 3,179,607 |         |   |   | (7,511 | )      |  |   | 17,913 |        |   |   | (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     |  |                |           |         |   |   |        |        |  |   |        |        |   |   |            | 4,599 |  
|                                                                                           
|                                                                                           
|                                                                                           
|                                                                                           
|                                                                                            | 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 |        |   |   | (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     |  |                |           |         |   |   |        |        |  |   |        |        |   |   |            | 5,006 |  
|                                                                                           
|                                                                                           
|                                                                                           
|                                                                                           
|                                                                                            | 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 |        |   | $ | (1,512,888 | )    
|                                                                                            |                                                                                                  |        
|The information on pages 44 through 57 is an integral part of
    the financial statements. |                                                                                                  |         |       |         |  |            |        |          |  |             |         |            |  |                |           |         |   |   |        |       









---



##### 



NOTES TO CONSOLIDATED FINANCIAL STATEMENTS


A. SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES


Fiscal Year.


Principles of Consolidation.


Presentation.


Use of Estimates.


Cash Equivalents.


Investments in Marketable Equity Securities.


Inventories.


Property, Plant and Equipment.






Investments in Affiliates.


Cost Method Investments.


Goodwill and Other Intangibles.












---



##### 



Long-Lived Assets.


Program Rights.


Revenue Recognition.




Postretirement Benefits Other Than Pensions.


Income Taxes.


Foreign Currency Translation.


Stock Options.


|                                                                                                                                                        |  |      |         |   |      |   |         |      |  |   |         |  
|------------------------------------------------------------------------------------------------------------------------------------------------------- |  | ---- | ------- | - | ---- | - | ------- | ---- |  | - | ------- | -
|                                                                                                                                                        |  | 2004 |         |   | 2003 |   |         | 2002 | 
|                                                                                                                                                       
|Net income available for common shares, as reported                                                                                                     |  | $    | 331,740 |   |      | $ | 240,061 |      |  | $ | 203,235 |  
|                                                                                                                                                       
|                                                                                                                                                       
|                                                                                                                                                       
|                                                                                                                                                       
|Add: Company stock option compensation expense included in net
    income, net of related tax effects                                                   |  |      | 506     |   |      |   | 370     |      |  |   | 28      |  
|                                                                                                                                                       
|                                                                                                                                                       
|                                                                                                                                                       
|                                                                                                                                                       
|Deduct: Total Company stock option compensation expense
    determined under the fair-value-based method for all awards, net
    of related tax effects |  |      | (2,946  | ) |      |   | (3,529  | )    |  |   | (3,645  | )
|                                                                                                                                                        |  |     
|                                                                                                                                                       
|Pro forma net income available for common shares                                                                                                        |  | $    | 329,300 |   |      | $ | 236,902 |      |  | $ | 199,618 |  
|                                                                                                                                                        |  |     
|                                                                                                                                                       
|Basic earnings per share, as reported                                                                                                                   |  | $    | 34.69   |   |      | $ | 25.19   |      |  | $ | 21.38   |  
|                                                                                                                                                       
|                                                                                                                                                       
|                                                                                                                                                       
|                                                                                                                                                       
|Pro forma basic earnings per share                                                                                                                      |  | $    | 34.43   |   |      | $ | 24.86   |      |  | $ | 21.00   |  
|                                                                                                                                                       
|                                                                                                                                                       
|                                                                                                                                                       
|                                                                                                                                                       
|Diluted earnings per share, as reported                                                                                                                 |  | $    | 34.59   |   |      | $ | 25.12   |      |  | $ | 21.34   |  
|                                                                                                                                                       
|                                                                                                                                                       
|                                                                                                                                                       
|                                                                                                                                                       
|Pro forma diluted earnings per share                                                                                                                    |  | $    | 34.33   |   |      | $ | 24.79   |      |  | $ | 20.96   |  



B. ACCOUNTS RECEIVABLE AND ACCOUNTS PAYABLE AND ACCRUED
LIABILITIES




|                                                                                                                   |  |      |         |  |      |   |         | 
|------------------------------------------------------------------------------------------------------------------ |  | ---- | ------- |  | ---- | - | ------- | 
|                                                                                                                   |  | 2004 |         |  | 2003 |  
|                                                                                                                  
|Trade accounts receivable,
    less estimated returns, doubtful
    accounts and allowances of $70,965 and $66,524 |  | $    | 342,879 |  |      | $ | 311,807 | 
|                                                                                                                  
|                                                                                                                  
|                                                                                                                  
|                                                                                                                  
|Other accounts receivable                                                                                          |  |      | 19,983  |  |      |   | 17,009  | 
|                                                                                                                   |  |     
|                                                                                                                  
|                                                                                                                   |  | $    | 362,862 |  |      | $ | 328,816 | 
|                                                                                                                   |  |     









---



##### 





|                                          |  |      |         |  |      |   |         | 
|----------------------------------------- |  | ---- | ------- |  | ---- | - | ------- | 
|                                          |  | 2004 |         |  | 2003 |  
|                                         
|Accounts payable and accrued expenses     |  | $    | 229,380 |  |      | $ | 211,972 | 
|                                         
|                                         
|                                         
|                                         
|Accrued compensation and related benefits |  |      | 204,225 |  |      |   | 147,985 | 
|                                         
|                                         
|                                         
|                                         
|Due to affiliates (newsprint)             |  |      | 9,727   |  |      |   | 8,406   | 
|                                          |  |     
|                                         
|                                          |  | $    | 443,332 |  |      | $ | 368,363 | 
|                                          |  |     



C. INVESTMENTS


Investments in Marketable Equity Securities.


|                     |  |      |         |  |      |   |         | 
|-------------------- |  | ---- | ------- |  | ---- | - | ------- | 
|                     |  | 2004 |         |  | 2003 |  
|                    
|Total cost           |  | $    | 285,912 |  |      | $ | 186,954 | 
|                    
|                    
|                    
|                    
|Net unrealized gains |  |      | 123,824 |  |      |   | 61,004  | 
|                     |  |     
|                    
|Total fair value     |  | $    | 409,736 |  |      | $ | 247,958 | 
|                     |  |     







Investments in Affiliates.


|                                               |  |      |        |  |      |   |        | 
|---------------------------------------------- |  | ---- | ------ |  | ---- | - | ------ | 
|                                               |  | 2004 |        |  | 2003
|                                              
|BrassRing                                      |  | $    | 8,755  |  |      | $ | 11,892 | 
|                                              
|                                              
|                                              
|                                              
|Bowater Mersey Paper Company                   |  |      | 52,112 |  |      |   | 48,559 | 
|                                              
|                                              
|                                              
|                                              
|Los Angeles TimesWashington Post News Service |  |      | 947    |  |      |   | 861    | 
|                                               |  |     
|                                              
|                                               |  | $    | 61,814 |  |      | $ | 61,312 | 
|                                               |  |     



|                      |                               |      |   |         |      |  |   |         |   |  |   |         |  
|--------------------- | ----------------------------- | ---- | - | ------- | ---- |  | - | ------- | - |  | - | ------- | -
|                      |                               | 2004 |   |         | 2003 |  |   | 2002    |  
|                     
|Financial Position    |                               |      |   |         |      |  |   |         |   |  |   |        
|                     
|                     
|                     
|                     
|                      | Working capital               |      | $ | 9,014   |      |  | $ | 11,108  |   |  | $ | 10,366  |  
|                     
|                     
|                     
|                     
|                      | Property, plant and equipment |      |   | 137,321 |      |  |   | 140,917 |   |  |   | 135,013 |  
|                     
|                     
|                     
|                     
|                      | Total assets                  |      |   | 202,904 |      |  |   | 214,658 |   |  |   | 235,208 |  
|                     
|                     
|                     
|                     
|                      | Long-term debt                |      |   |        |      |  |   |        |   |  |   |        |  
|                     
|                     
|                     
|                     
|                      | Net equity                    |      |   | 155,147 |      |  |   | 149,584 |   |  |   | 138,723 |  
|                     
|                     
|                     
|                     
|Results of Operations |                               |      |   |         |      |  |   |        
|                     
|                     
|                     
|                     
|                      | Operating revenues            |      | $ | 221,618 |      |  | $ | 174,505 |   |  | $ | 263,709 |  
|                     
|                     
|                     
|                     
|                      | Operating income (loss)       |      |   | 1,695   |      |  |   | (18,753 | ) |  |   | (21,725 | )
|                     
|                     
|                     
|                     
|                      | Net loss                      |      |   | (4,577  | )    |  |   | (20,164 | ) |  |   | (36,326 | )



|                                     |  |      |        |   |      |   |         |  
|------------------------------------ |  | ---- | ------ | - | ---- | - | ------- | -
|                                     |  | 2004 |        |   | 2003 |  
|                                    
|Beginning investment                 |  | $    | 61,312 |   |      | $ | 70,703  |  
|                                    
|                                    
|                                    
|                                    
|Additional investment                |  |      |       |   |      |   | 5,976   |  
|                                    
|                                    
|                                    
|                                    
|Equity in losses                     |  |      | (2,291 | ) |      |   | (9,766  | )
|                                    
|                                    
|                                    
|                                    
|Dividends and distributions received |  |      | (800   | ) |      |   | (750    | )
|                                    
|                                    
|                                    
|                                    
|Foreign currency translation         |  |      | 3,593  |   |      |   | 9,205   |  
|                                    
|                                    
|                                    
|                                    
|Sale of interest                     |  |      |       |   |      |   | (14,056 | )
|                                     |  |     
|                                    
|Ending investment                    |  | $    | 61,814 |   |      | $ | 61,312  |  
|                                     |  |     











---



##### 







Cost Method Investments.






D. INCOME TAXES




|     |                 |         |         |         |          |   |        |        |   |   |         |         | 
|---- | --------------- | ------- | ------- | ------- | -------- | - | ------ | ------ | - | - | ------- | ------- | 
|     |                 | Current |         |         | Deferred |   |        | Total  |  
|    
|    
|    
|    
|    
|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 |        
|     |                 |        
|2002 |                 |         |         |         |          |   |        |        |   |   |         |        
|    
|    
|    
|    
|     | U.S. Federal    |         | $       | 75,654  |          |   | $      | 38,934 |   |   | $       | 114,588 | 
|    
|    
|    
|    
|     | Foreign         |         |         | 1,634   |          |   |        | (499   | ) |   |         | 1,135   | 
|    
|    
|    
|    
|     | State and local |         |         | 9,897   |          |   |        | 11,680 |   |   |         | 21,577  | 
|     |                 |        
|    
|     |                 | $       | 87,185  |         |          | $ | 50,115 |        |   | $ | 137,300 |        
|     |                 |        





|                                                              |  |      |         |   |      |   |         |      |  |   |         |  
|------------------------------------------------------------- |  | ---- | ------- | - | ---- | - | ------- | ---- |  | - | ------- | -
|                                                              |  | 2004 |         |   | 2003 |   |         | 2002 | 
|                                                             
|                                                             
|                                                             
|                                                             
|                                                             
|U.S. Federal statutory taxes                                  |  | $    | 189,851 |   |      | $ | 133,906 |      |  | $ | 123,784 |  
|                                                             
|                                                             
|                                                             
|                                                             
|State and local taxes, net of U.S. Federal income tax benefit |  |      | 20,369  |   |      |   | 11,058  |      |  |   | 14,025  |  
|                                                             
|                                                             
|                                                             
|                                                             
|Sale of affiliate with higher tax basis                       |  |      |        |   |      |   | (2,188  | )    |  |   |        |  
|                                                             
|                                                             
|                                                             
|                                                             
|Other, net                                                    |  |      | (520    | ) |      |   | (1,276  | )    |  |   | (509    | )
|                                                              |  |     
|                                                             
|Provision for income taxes                                    |  | $    | 209,700 |   |      | $ | 141,500 |      |  | $ | 137,300 |  
|                                                              |  |     



|                                                 |  |      |         |  |      |   |         | 
|------------------------------------------------ |  | ---- | ------- |  | ---- | - | ------- | 
|                                                 |  | 2004 |         |  | 2003 |  
|                                                
|                                                
|                                                
|                                                
|                                                
|Accrued postretirement benefits                  |  | $    | 61,221  |  |      | $ | 60,536  | 
|                                                
|                                                
|                                                
|                                                
|Other benefit obligations                        |  |      | 122,608 |  |      |   | 102,791 | 
|                                                
|                                                
|                                                
|                                                
|Accounts receivable                              |  |      | 18,939  |  |      |   | 17,650  | 
|                                                
|                                                
|                                                
|                                                
|State income tax loss carryforwards              |  |      | 10,753  |  |      |   | 12,068  | 
|                                                
|                                                
|                                                
|                                                
|Affiliate operations                             |  |      | 4,403   |  |      |   | 4,334   | 
|                                                
|                                                
|                                                
|                                                
|Other                                            |  |      | 19,866  |  |      |   | 25,480  | 
|                                                 |  |     
|                                                
|Deferred tax asset                               |  |      | 237,790 |  |      |   | 222,859 | 
|                                                 |  |     
|Property, plant and equipment                    |  |      | 173,101 |  |      |   | 153,615 | 
|                                                
|                                                
|                                                
|                                                
|Prepaid pension cost                             |  |      | 224,991 |  |      |   | 207,312 | 
|                                                
|                                                
|                                                
|                                                
|Unrealized gain on available-for-sale securities |  |      | 48,387  |  |      |   | 23,811  | 
|                                                
|                                                
|                                                
|                                                
|Goodwill and other intangibles                   |  |      | 164,138 |  |      |   | 141,945 | 
|                                                 |  |     
|                                                
|Deferred tax liability                           |  |      | 610,617 |  |      |   | 526,683 | 
|                                                 |  |     
|                                                
|Deferred income taxes                            |  | $    | 372,827 |  |      | $ | 303,824 | 
|                                                 |  |     



|             |  |   |       | 
|------------ |  | - | ----- | 
|            
|            
|            
|            
|2005         |  | $ | 3.0   | 
|            
|            
|            
|            
|2006         |  |   | 5.0   | 
|            
|            
|            
|            
|2007         |  |   | 1.0   | 
|            
|            
|            
|            
|2008         |  |   | 9.0   | 
|            
|            
|            
|            
|2009         |  |   | 4.0   | 
|            
|            
|            
|            
|2010         |  |   | 7.0   | 
|            
|            
|            
|            
|2011 to 2023 |  |   | 184.0 | 
|             |  |   |       | 
|Total        |  | $ | 213.0 | 
|             |  |   |       | 









---



##### 



E. DEBT




|                                                                |  |            |       |      |              |  |         |  
|--------------------------------------------------------------- |  | ---------- | ----- | ---- | ------------ |  | ------- | -
|                                                                |  | January 2, |       |      | December 28, | 
|                                                                |  | 2005       |       | 2003
|                                                               
|Commercial paper borrowings                                     |  | $          | 50.2  |      |              |  | $ 188.3 |  
|                                                               
|                                                               
|                                                               
|                                                               
|5.5% unsecured notes due February 15, 2009                      |  |            | 398.9 |      |              |  | 398.7   |  
|                                                               
|                                                               
|                                                               
|                                                               
|4.0% notes due 2004
    2006 (£8.35 million and £16.7 million) |  |            | 16.1  |      |              |  | 29.7    |  
|                                                               
|                                                               
|                                                               
|                                                               
|Other indebtedness                                              |  |            | 18.9  |      |              |  | 14.4    |  
|                                                                |  |           
|                                                               
|Total                                                           |  |            | 484.1 |      |              |  | 631.1   |  
|                                                               
|                                                               
|                                                               
|                                                               
|Less current portion                                            |  |            | (58.2 | )    |              |  | (208.6  | )
|                                                                |  |           
|                                                               
|Total long-term debt                                            |  | $          | 425.9 |      |              |  | $ 422.5 |  
|                                                                |  |           















F. REDEEMABLE PREFERRED STOCK






G. CAPITAL STOCK, STOCK AWARDS AND STOCK OPTIONS


Capital Stock.












---



##### 



Stock Awards.


|                  |           |        |        |         |   |        |         |         |  |        |        |         |   |  |         |        |  |  |        |        |   |  |         |        | 
|----------------- | --------- | ------ | ------ | ------- | - | ------ | ------- | ------- |  | ------ | ------ | ------- | - |  | ------- | ------ |  |  | ------ | ------ | - |  | ------- | ------ | 
|                  |           | 2004   |        | 2003    |   | 2002  
|                  |           |        |        |         |   |       
|                  |           | Number |        | Average |   | Number |         | Average |  | Number |        | Average
|                  |           | of     |        | Award   |   | of     |         | Award   |  | of     |        | Award  
|                  |           | Shares |        | Price   |   | Shares |         | Price   |  | Shares |        | Price  
|                 
|Beginning of year |           |        | 29,845 |         |   |        | $643.89 |         |  |        | 27,625 |         |   |  | $536.74 |        |  |  | 29,895 |        |   |  | $539.25 |       
|                 
|                 
|                 
|                 
|                  | Awarded   |        |        | 200     |   |        |         | 973.88  |  |        |        | 15,990  |   |  |         | 734.01 |  |  |        | 215    |   |  |         | 563.36 | 
|                 
|                 
|                 
|                 
|                  | Vested    |        |        | (561    | ) |        |         | 625.91  |  |        |        | (12,752 | ) |  |         | 523.60 |  |  |        | (601   | ) |  |         | 540.61 | 
|                 
|                 
|                 
|                 
|                  | Forfeited |        |        | (1,483  | ) |        |         | 683.58  |  |        |        | (1,018  | ) |  |         | 658.44 |  |  |        | (1,884 | ) |  |         | 578.37 | 
|                  |           |       
|                 
|End of year       |           |        | 28,001 |         |   |        | $644.51 |         |  |        | 29,845 |         |   |  | $643.89 |        |  |  | 27,625 |        |   |  | $536.74 |       
|                  |           |       





Stock Options.




|                  |           |        |         |         |         |        |        |        |         |        |         |         |         |  |         |        |  |  |         |         |   |  |         |        | 
|----------------- | --------- | ------ | ------- | ------- | ------- | ------ | ------ | ------ | ------- | ------ | ------- | ------- | ------- |  | ------- | ------ |  |  | ------- | ------- | - |  | ------- | ------ | 
|                  |           | 2004   |         | 2003    |         | 2002  
|                  |           |        |         |         |         |       
|                  |           | Number |         |         | Average |        | Number |        | Average |        | Number  |         | Average
|                  |           | of     |         | Option  |         | of     |        | Option |         | of     |         | Option 
|                  |           | Shares |         | Price   |         | Shares |        | Price  |         | Shares |         | Price  
|                 
|Beginning of year |           |        | 152,475 |         |         | $      | 530.81 |        |         |        | 163,900 |         |         |  | $515.74 |        |  |  | 170,575 |         |   |  | $490.86 |       
|                 
|                 
|                 
|                 
|                  | Granted   |        |         | 4,000   |         |        |        | 953.50 |         |        |         | 5,000   |         |  |         | 803.70 |  |  |         | 11,500  |   |  |         | 729.00 | 
|                 
|                 
|                 
|                 
|                  | Exercised |        |         | (33,225 | )       |        |        | 467.68 |         |        |         | (15,675 | )       |  |         | 450.87 |  |  |         | (16,675 | ) |  |         | 404.14 | 
|                 
|                 
|                 
|                 
|                  | Forfeited |        |         | (1,000  | )       |        |        | 621.38 |         |        |         | (750    | )       |  |         | 729.00 |  |  |         | (1,500  | ) |  |         | 561.77 | 
|                  |           |       
|                 
|End of year       |           |        | 122,250 |         |         | $      | 561.05 |        |         |        | 152,475 |         |         |  | $530.81 |        |  |  | 163,900 |         |   |  | $515.74 |       
|                  |           |       



|                |          |             |  |             |        |          |  |             |      |          |  |   |        |  |  |  |        |  |  |   |        | 
|--------------- | -------- | ----------- |  | ----------- | ------ | -------- |  | ----------- | ---- | -------- |  | - | ------ |  |  |  | ------ |  |  | - | ------ | 
|                |          |             |  | Weighted    |        |          |  |             |      |         
|                |          |             |  | Average     |        | Weighted |  |             |      | Weighted
|                |          | Number      |  | Remaining   |        | Average  |  | Number      |      | Average 
|Range of        |          | Outstanding |  | Contractual |        | Exercise |  | Exercisable |      | Exercise
|Exercise Prices |          | at 1/2/2005 |  | Life (yrs.) |        | Price    |  | at 1/2/2005 |      | Price   
|               
|                | $222299 |             |  |             | 500    |          |  |             | 1.0  |          |  | $ | 298.75 |  |  |  | 500    |  |  | $ | 298.75 | 
|               
|               
|               
|               
|                | 344      |             |  |             | 5,000  |          |  |             | 2.0  |          |  |   | 343.94 |  |  |  | 5,000  |  |  |   | 343.94 | 
|               
|               
|               
|               
|                | 472484  |             |  |             | 12,125 |          |  |             | 3.7  |          |  |   | 473.70 |  |  |  | 12,125 |  |  |   | 473.70 | 
|               
|               
|               
|               
|                | 500596  |             |  |             | 85,625 |          |  |             | 6.0  |          |  |   | 535.51 |  |  |  | 79,875 |  |  |   | 530.99 | 
|               
|               
|               
|               
|                | 693      |             |  |             | 500    |          |  |             | 9.0  |          |  |   | 692.51 |  |  |  | 125    |  |  |   | 692.51 | 
|               
|               
|               
|               
|                | 729      |             |  |             | 10,000 |          |  |             | 8.0  |          |  |   | 729.00 |  |  |  | 5,000  |  |  |   | 729.00 | 
|               
|               
|               
|               
|                | 816      |             |  |             | 4,500  |          |  |             | 9.0  |          |  |   | 816.05 |  |  |  | 1,125  |  |  |   | 816.05 | 
|               
|               
|               
|               
|                | 954      |             |  |             | 4,000  |          |  |             | 10.0 |          |  |   | 953.50 |  |  |  |       |  |  |   |       | 



|                      |  |      |       |   |      |  |       |      |  |  |       |  
|--------------------- |  | ---- | ----- | - | ---- |  | ----- | ---- |  |  | ----- | -
|                      |  | 2004 |       |   | 2003 |  |       | 2002 | 
|                     
|Expected life (years) |  |      | 7     |   |      |  | 7     |      |  |  | 7     |  
|                     
|                     
|                     
|                     
|Interest rate         |  |      | 3.85  | % |      |  | 4.38  | %    |  |  | 3.69  | %
|                     
|                     
|                     
|                     
|Volatility            |  |      | 20.24 | % |      |  | 20.43 | %    |  |  | 21.74 | %
|                     
|                     
|                     
|                     
|Dividend yield        |  |      | 0.73  | % |      |  | 0.71  | %    |  |  | 0.77  | %













---



##### 











|                  |           |        |        |         |  |        |         |         |  |        |         |         |   |   |        |          |  |  |         |        |   |  |         |        | 
|----------------- | --------- | ------ | ------ | ------- |  | ------ | ------- | ------- |  | ------ | ------- | ------- | - | - | ------ | -------- |  |  | ------- | ------ | - |  | ------- | ------ | 
|                  |           | 2004   |        | 2003    |  | 2002  
|                  |           |        |        |         |  |       
|                  |           | 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 |         |  |        | 147,463 |         |   | $ | 311.24 |          |  |  | 142,578 |        |   |  | $296.69 |       
|                 
|                 
|                 
|                 
|                  | Granted   |        |        |        |  |        |         |        |  |        |         | 16,037  |   |   |        | 1,546.23 |  |  |         | 6,475  |   |  |         | 652.00 | 
|                 
|                 
|                 
|                 
|                  | Exercised |        |        |        |  |        |         |        |  |        |         | (94,652 | ) |   |        | 303.66   |  |  |         | (540   | ) |  |         | 375.00 | 
|                 
|                 
|                 
|                 
|                  | Forfeited |        |        |        |  |        |         |        |  |        |         | (848    | ) |   |        | 382.12   |  |  |         | (1,050 | ) |  |         | 403.76 | 
|                  |           |        |        |         |  |        |         |         |  |        |         |         |   |   |        |          |  |  |         |        |   |  |         |       
|End of year       |           |        | 68,000 |         |  |        | $596.17 |         |  |        | 68,000  |         |   | $ | 596.17 |          |  |  | 147,463 |        |   |  | $311.24 |       
|                  |           |        |        |         |  |        |         |         |  |        |         |         |   |   |        |          |  |  |         |        |   |  |         |       



|                |       |             |  |             |        |             |  |  |     |  |  |  |        | 
|--------------- | ----- | ----------- |  | ----------- | ------ | ----------- |  |  | --- |  |  |  | ------ | 
|                |       |             |  | Weighted    |        |            
|                |       |             |  | Average     |        |            
|                |       | Number      |  | Remaining   |        | Number     
|Range of        |       | Outstanding |  | Contractual |        | Exercisable
|Exercise Prices |       | at 1/2/05   |  | Life (yrs.) |        | at 1/2/05  
|               
|$               | 190   |             |  |             | 31,341 |             |  |  | 3.0 |  |  |  | 31,341 | 
|               
|               
|               
|               
|                | 375   |             |  |             | 500    |             |  |  | 4.6 |  |  |  | 400    | 
|               
|               
|               
|               
|                | 526   |             |  |             | 19,172 |             |  |  | 6.0 |  |  |  | 12,098 | 
|               
|               
|               
|               
|                | 652   |             |  |             | 3,000  |             |  |  | 6.0 |  |  |  | 1,200  | 
|               
|               
|               
|               
|                | 861   |             |  |             | 487    |             |  |  | 6.0 |  |  |  | 97     | 
|               
|               
|               
|               
|                | 1,625 |             |  |             | 13,500 |             |  |  | 7.0 |  |  |  | 2,700  | 

Average Number of Shares Outstanding.


|     |  |          |           |           |  |          |        |  |  |  |           | 
|---- |  | -------- | --------- | --------- |  | -------- | ------ |  |  |  | --------- | 
|     |  | Basic    |           | Dilutive  |  | Diluted 
|     |  | Weighted |           | Effect of |  | Weighted
|     |  | Average  |           | Stock     |  | Average 
|     |  | Shares   |           | Options   |  | Shares  
|    
|    
|    
|    
|    
|2004 |  |          | 9,563,314 |           |  |          | 28,311 |  |  |  | 9,591,625 | 
|    
|    
|    
|    
|2003 |  |          | 9,530,209 |           |  |          | 24,454 |  |  |  | 9,554,663 | 
|    
|    
|    
|    
|2002 |  |          | 9,503,983 |           |  |          | 18,671 |  |  |  | 9,522,654 | 





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



















---



##### 





|                                          |  |               |           |                      |      |   |           |      |  |   |          |   |  |   |          |  
|----------------------------------------- |  | ------------- | --------- | -------------------- | ---- | - | --------- | ---- |  | - | -------- | - |  | - | -------- | -
|                                          |  | Pension Plans |           | Postretirement Plans
|                                          |  |               |           |                     
|                                          |  | 2004          |           |                      | 2003 |   |           | 2004 |  |   | 2003     |  
|                                         
|Change in Benefit Obligation              |  |               |           |                      |      |   |           |      |  |   |          |   |  |   |          |  
|                                         
|                                         
|                                         
|                                         
|Benefit obligation at beginning of year   |  | $             | 625,774   |                      |      | $ | 498,952   |      |  | $ | 120,444  |   |  | $ | 112,174  |  
|                                         
|                                         
|                                         
|                                         
|Service cost                              |  |               | 22,896    |                      |      |   | 19,965    |      |  |   | 5,285    |   |  |   | 5,164    |  
|                                         
|                                         
|                                         
|                                         
|Interest cost                             |  |               | 37,153    |                      |      |   | 33,696    |      |  |   | 7,355    |   |  |   | 7,395    |  
|                                         
|                                         
|                                         
|                                         
|Amendments                                |  |               | 218       |                      |      |   | 60,697    |      |  |   |         |   |  |   | (5,479   | )
|                                         
|                                         
|                                         
|                                         
|Actuarial loss                            |  |               | 46,655    |                      |      |   | 37,339    |      |  |   | 5,764    |   |  |   | 6,733    |  
|                                         
|                                         
|                                         
|                                         
|Benefits paid                             |  |               | (43,555   | )                    |      |   | (24,875   | )    |  |   | (6,308   | ) |  |   | (5,543   | )
|                                          |  |              
|                                         
|Benefit obligation at end of year         |  | $             | 689,141   |                      |      | $ | 625,774   |      |  | $ | 132,540  |   |  | $ | 120,444  |  
|                                          |  |              
|                                         
|                                         
|                                         
|                                         
|Change in Plan Assets                     |  |               |           |                      |      |   |           |      |  |   |          |   |  |   |          |  
|                                         
|                                         
|                                         
|                                         
|Fair value of assets at beginning of year |  | $             | 1,564,966 |                      |      | $ | 1,362,084 |      |  | $ |         |   |  | $ |         |  
|                                         
|                                         
|                                         
|                                         
|Actual return on plan assets              |  |               | 66,802    |                      |      |   | 227,757   |      |  |   |         |   |  |   |         |  
|                                         
|                                         
|                                         
|                                         
|Employer contributions                    |  |               |          |                      |      |   |          |      |  |   | 6,308    |   |  |   | 5,543    |  
|                                         
|                                         
|                                         
|                                         
|Benefits paid                             |  |               | (43,555   | )                    |      |   | (24,875   | )    |  |   | (6,308   | ) |  |   | (5,543   | )
|                                          |  |              
|                                         
|Fair value of assets at end of year       |  | $             | 1,588,213 |                      |      | $ | 1,564,966 |      |  | $ |         |   |  | $ |         |  
|                                          |  |              
|                                         
|Funded status                             |  | $             | 899,072   |                      |      | $ | 939,192   |      |  | $ | (132,540 | ) |  | $ | (120,444 | )
|                                         
|                                         
|                                         
|                                         
|Unrecognized transition asset             |  |               | (355      | )                    |      |   | (1,442    | )    |  |   |         |   |  |   |         |  
|                                         
|                                         
|                                         
|                                         
|Unrecognized prior service cost           |  |               | 38,389    |                      |      |   | 46,941    |      |  |   | (8,001   | ) |  |   | (8,589   | )
|                                         
|                                         
|                                         
|                                         
|Unrecognized actuarial gain               |  |               | (380,359  | )                    |      |   | (469,890  | )    |  |   | (4,949   | ) |  |   | (11,707  | )
|                                          |  |              
|                                         
|Net prepaid (accrued) cost                |  | $             | 556,747   |                      |      | $ | 514,801   |      |  | $ | (145,490 | ) |  | $ | (140,740 | )
|                                          |  |              





|                              |  |               |       |                |      |  |       |      |  |  |       |  |  |  |       | 
|----------------------------- |  | ------------- | ----- | -------------- | ---- |  | ----- | ---- |  |  | ----- |  |  |  | ----- | 
|                              |  |               |       | Postretirement
|                              |  | Pension Plans |       | Plans         
|                              |  |               |       |               
|                              |  | 2004          |       |                | 2003 |  |       | 2004 |  |  | 2003  | 
|                             
|                             
|                             
|                             
|                             
|Discount rate                 |  |               | 5.75% |                |      |  | 6.25% |      |  |  | 5.75% |  |  |  | 6.25% | 
|                             
|                             
|                             
|                             
|Rate of compensation increase |  |               | 4.0%  |                |      |  | 4.0%  |      |  |  |      |  |  |  |      | 





|                                  |  |          |        |          |  |   |         |  
|--------------------------------- |  | -------- | ------ | -------- |  | - | ------- | -
|                                  |  | 1%       |        | 1%      
|                                  |  | Increase |        | Decrease
|                                 
|                                 
|                                 
|                                 
|                                 
|Benefit obligation at end of year |  | $        | 20,106 |          |  | $ | (18,798 | )
|                                 
|                                 
|                                 
|                                 
|Service cost plus interest cost   |  | $        | 2,018  |          |  | $ | (1,957  | )





|          |  |               |       |                |  |   |      | 
|--------- |  | ------------- | ----- | -------------- |  | - | ---- | 
|          |  |               |       | Postretirement
|          |  | Pension Plans |       | Plans         
|          |  |               |       |               
|2005      |  | $             | 26.2  |                |  | $ | 6.6  | 
|         
|         
|         
|         
|2006      |  | $             | 27.2  |                |  | $ | 6.9  | 
|         
|         
|         
|         
|2007      |  | $             | 28.5  |                |  | $ | 7.4  | 
|         
|         
|         
|         
|2008      |  | $             | 30.0  |                |  | $ | 8.0  | 
|         
|         
|         
|         
|2009      |  | $             | 31.8  |                |  | $ | 8.6  | 
|         
|         
|         
|         
|2010-2014 |  | $             | 196.9 |                |  | $ | 52.7 | 





|                                         |  |               |         |                      |      |   |         |      |  |   |         |   |  |      |        |   |      |   |        |   |  |   |        |  
|---------------------------------------- |  | ------------- | ------- | -------------------- | ---- | - | ------- | ---- |  | - | ------- | - |  | ---- | ------ | - | ---- | - | ------ | - |  | - | ------ | -
|                                         |  | Pension Plans |         | Postretirement Plans
|                                         |  |               |         |                     
|                                         |  | 2004          |         |                      | 2003 |   |         | 2002 |  |   | 2004    |   |  | 2003 |        |   | 2002 |  
|                                        
|Service cost                             |  | $             | 22,896  |                      |      | $ | 19,965  |      |  | $ | 17,489  |   |  | $    | 5,285  |   |      | $ | 5,164  |   |  | $ | 5,418  |  
|                                        
|                                        
|                                        
|                                        
|Interest cost                            |  |               | 37,153  |                      |      |   | 33,696  |      |  |   | 30,820  |   |  |      | 7,355  |   |      |   | 7,395  |   |  |   | 7,997  |  
|                                        
|                                        
|                                        
|                                        
|Expected return on assets                |  |               | (97,702 | )                    |      |   | (96,116 | )    |  |   | (92,192 | ) |  |      |       |   |      |   |       |   |  |   |       |  
|                                        
|                                        
|                                        
|                                        
|Amortization of transition asset         |  |               | (1,086  | )                    |      |   | (2,189  | )    |  |   | (5,221  | ) |  |      |       |   |      |   |       |   |  |   |       |  
|                                        
|                                        
|                                        
|                                        
|Amortization of prior service cost       |  |               | 4,530   |                      |      |   | 4,172   |      |  |   | 2,185   |   |  |      | (588   | ) |      |   | (360   | ) |  |   | (421   | )
|                                        
|                                        
|                                        
|                                        
|Recognized actuarial gain                |  |               | (7,745  | )                    |      |   | (14,665 | )    |  |   | (17,528 | ) |  |      | (995   | ) |      |   | (1,675 | ) |  |   | (2,435 | )
|                                         |  |              
|                                        
|Net periodic (benefit) cost for the year |  |               | (41,954 | )                    |      |   | (55,137 | )    |  |   | (64,447 | ) |  |      | 11,057 |   |      |   | 10,524 |   |  |   | 10,559 |  
|                                        
|                                        
|                                        
|                                        
|Early retirement programs expense        |  |               | 132     |                      |      |   | 34,135  |      |  |   | 19,001  |   |  |      |       |   |      |   |       |   |  |   |       |  
|                                        
|                                        
|                                        
|                                        
|Curtailment gain                         |  |               |        |                      |      |   |        |      |  |   |        |   |  |      |       |   |      |   | (634   | ) |  |   |       |  
|                                         |  |              
|                                        
|Total (benefit) cost for the year        |  | $             | (41,822 | )                    |      | $ | (21,002 | )    |  | $ | (45,446 | ) |  | $    | 11,057 |   |      | $ | 9,890  |   |  | $ | 10,559 |  
|                                         |  |              











---



##### 





|                               |  |               |       |                      |      |  |       |      |  |  |      |  |  |      |       |  |      |  |       |  |  |  |      | 
|------------------------------ |  | ------------- | ----- | -------------------- | ---- |  | ----- | ---- |  |  | ---- |  |  | ---- | ----- |  | ---- |  | ----- |  |  |  | ---- | 
|                               |  | Pension Plans |       | Postretirement Plans
|                               |  |               |       |                     
|                               |  | 2004          |       |                      | 2003 |  |       | 2002 |  |  | 2004 |  |  | 2003 |       |  | 2002 | 
|                              
|Discount rate                  |  |               | 6.25% |                      |      |  | 6.75% |      |  |  | 7.0% |  |  |      | 6.25% |  |      |  | 6.75% |  |  |  | 7.0% | 
|                              
|                              
|                              
|                              
|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






|           |  |   |         | 
|---------- |  | - | ------- | 
|          
|          
|          
|          
|2005       |  | $ | 80,842  | 
|          
|          
|          
|          
|2006       |  |   | 75,974  | 
|          
|          
|          
|          
|2007       |  |   | 71,181  | 
|          
|          
|          
|          
|2008       |  |   | 61,767  | 
|          
|          
|          
|          
|2009       |  |   | 52,303  | 
|          
|          
|          
|          
|Thereafter |  |   | 154,541 | 
|           |  |   |         | 
|          
|           |  | $ | 496,608 | 
|           |  |   |         | 







J. ACQUISITIONS, EXCHANGES AND DISPOSITIONS




















---



##### 











K. GOODWILL AND OTHER INTANGIBLE ASSETS










|      |                                    |       |   |             |              |  |     |         |  |  |   |           | 
|----- | ---------------------------------- | ----- | - | ----------- | ------------ |  | --- | ------- |  |  | - | --------- | 
|      |                                    |       |   | Accumulated |              |  |    
|      |                                    | Gross |   |             | Amortization |  | Net |        
|     
|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 | 
|      |                                    |      
|     
|     
|     
|     
|2003: |                                    |       |   |             |              |  |     |         |  |  |   |          
|     
|     
|     
|     
|      | Goodwill                           |       | $ | 1,264,096   |              |  | $   | 298,402 |  |  | $ | 965,694   | 
|     
|     
|     
|     
|      | Indefinite-lived intangible assets |       |   | 650,462     |              |  |     | 163,806 |  |  |   | 486,656   | 
|     
|     
|     
|     
|      | Amortized intangible assets        |       |   | 8,034       |              |  |     | 2,808   |  |  |   | 5,226     | 
|      |                                    |      
|      |                                    |       | $ | 1,922,592   |              |  | $   | 465,016 |  |  | $ | 1,457,576 | 
|      |                                    |      



|                                        |                                |            |   |              |   |            |   |            |  |           |   |        |  |  |   |         |   |  |   |         |   |  |   |           |  
|--------------------------------------- | ------------------------------ | ---------- | - | ------------ | - | ---------- | - | ---------- |  | --------- | - | ------ |  |  | - | ------- | - |  | - | ------- | - |  | - | --------- | -
|                                        |                                | 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     |  
|                                        |                                |           



|                                        |                                |            |   |              |   |            |   |            |  |           |   |        |  |  |   |         |   |  |   |         |   |  |   |         |  
|--------------------------------------- | ------------------------------ | ---------- | - | ------------ | - | ---------- | - | ---------- |  | --------- | - | ------ |  |  | - | ------- | - |  | - | ------- | - |  | - | ------- | -
|                                        |                                | Newspaper  |   | Television   |   | Magazine   |   | Cable      |  |           |   |       
|                                        |                                | Publishing |   | Broadcasting |   | Publishing |   | Television |  | Education |   | Total 
|                                       
|Goodwill, Net                           |                                |            |   |              |   |            |   |            |  |           |   |        |  |  |   |         |   |  |   |         |   |  |   |        
|                                       
|                                       
|                                       
|                                       
|                                        | Beginning of year              |            | $ | 72,738       |   |            | $ | 203,165    |  |           | $ | 69,556 |  |  | $ | 85,666  |   |  | $ | 339,736 |   |  | $ | 770,861 |  
|                                       
|                                       
|                                       
|                                       
|                                        | Acquisitions                   |            |   |              |   |            |   |            |  |           |   |        |  |  |   |         |   |  |   | 184,075 |   |  |   | 184,075 |  
|                                       
|                                       
|                                       
|                                       
|                                        | Disposition                    |            |   | (1,461       | ) |            |   |            |  |           |   |        |  |  |   |         |   |  |   |         |   |  |   | (1,461  | )
|                                       
|                                       
|                                       
|                                       
|                                        | Foreign currency exchange rate |            |   |              |   |            |   |            |  |           |   |        |  |  |   |         |   |  |   | 12,219  |   |  |   | 12,219  |  
|                                        |                                |           
|                                       
|                                        | End of year                    |            | $ | 71,277       |   |            | $ | 203,165    |  |           | $ | 69,556 |  |  | $ | 85,666  |   |  | $ | 536,030 |   |  | $ | 965,694 |  
|                                        |                                |           
|                                       
|                                       
|                                       
|                                       
|Indefinite-Lived Intangible Assets, Net |                                |            |   |              |   |            |   |            |  |           |   |        |  |  |   |         |   |  |   |         |   |  |   |        
|                                       
|                                       
|                                       
|                                       
|                                        | Beginning of year              |            |   |              |   |            |   |            |  |           |   |        |  |  | $ | 482,419 |   |  |   |         |   |  | $ | 482,419 |  
|                                       
|                                       
|                                       
|                                       
|                                        | Acquisitions                   |            |   |              |   |            |   |            |  |           |   |        |  |  |   | 2,137   |   |  | $ | 2,100   |   |  |   | 4,237   |  
|                                        |                                |           
|                                       
|                                        | End of year                    |            |   |              |   |            |   |            |  |           |   |        |  |  | $ | 484,556 |   |  | $ | 2,100   |   |  | $ | 486,656 |  
|                                        |                                |           
|                                       
|                                       
|                                       
|                                       
|Amortized Intangible Assets, Net        |                                |            |   |              |   |            |   |            |  |           |   |        |  |  |   |         |   |  |   |         |   |  |   |        
|                                       
|                                       
|                                       
|                                       
|                                        | Beginning of year              |            | $ | 45           |   |            |   |            |  |           |   |        |  |  | $ | 1,232   |   |  | $ | 876     |   |  | $ | 2,153   |  
|                                       
|                                       
|                                       
|                                       
|                                        | Acquisitions                   |            |   |              |   |            |   |            |  |           |   |        |  |  |   |         |   |  |   | 4,463   |   |  |   | 4,463   |  
|                                       
|                                       
|                                       
|                                       
|                                        | Amortization                   |            |   | (15          | ) |            |   |            |  |           |   |        |  |  |   | (151    | ) |  |   | (1,270  | ) |  |   | (1,436  | )
|                                       
|                                       
|                                       
|                                       
|                                        | Foreign currency exchange rate |            |   |              |   |            |   |            |  |           |   |        |  |  |   |         |   |  |   | 46      |   |  |   | 46      |  
|                                        |                                |           
|                                       
|                                        | End of year                    |            | $ | 30           |   |            |   |            |  |           |   |        |  |  | $ | 1,081   |   |  | $ | 4,115   |   |  | $ | 5,226   |  
|                                        |                                |           









---



##### 



L. OTHER NON-OPERATING INCOME (EXPENSE)






|                                                            |       |      |      |     |      |   |      |      |  |   |       |      | 
|----------------------------------------------------------- | ----- | ---- | ---- | --- | ---- | - | ---- | ---- |  | - | ----- | ---- | 
|                                                            |       | 2004 |      |     | 2003 |   |      | 2002 | 
|                                                           
|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 | )    |  |   | (21.2 | )   
|                                                           
|                                                           
|                                                           
|                                                           
|Gain on sale or exchange of cable system businesses         |       |      | 0.5  |     |      |   |     |      |  |   | 27.8  |     
|                                                           
|                                                           
|                                                           
|                                                           
|Gain on sales of marketable securities                      |       |      |     |     |      |   |     |      |  |   | 13.2  |     
|                                                           
|                                                           
|                                                           
|                                                           
|Other                                                       |       |      | 2.8  |     |      |   | 2.7  |      |  |   | 9.1   |     
|                                                            |       |     
|                                                           
|                                                            | Total |      | $    | 8.1 |      |   | $    | 55.4 |  |   | $     | 28.9 | 
|                                                            |       |     

M. CONTINGENCIES






N. BUSINESS SEGMENTS
































---



##### 



|               |                                               |                            |   |              |   |            |   |            |  |           |   |           |  |              |   |           |   |  |   |           |   |  |   |         |   |  |   |           |           | 
|-------------- | --------------------------------------------- | -------------------------- | - | ------------ | - | ---------- | - | ---------- |  | --------- | - | --------- |  | ------------ | - | --------- | - |  | - | --------- | - |  | - | ------- | - |  | - | --------- | --------- | 
|               |                                               | Newspaper                  |   | Television   |   | Magazine   |   | Cable      |  |           |   | Corporate |  |             
|(in thousands) |                                               | Publishing                 |   | Broadcasting |   | Publishing |   | Television |  | Education |   | Office    |  | Consolidated
|              
|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                           |                            | $ | 688,812      |   |            | $ | 410,294    |  |           | $ | 582,489   |  |              | $ | 1,113,554 |   |  | $ | 1,035,772 |   |  | $ | 14,170  |   |  | $ | 3,845,091 |          
|              
|              
|              
|              
|               | Investments in marketable equity securities   |                            |   |              |   |            |   |            |  |           |   |           |  |              |   |           |   |  |   |           |   |  |   |         |   |  |   | 409,736   |          
|              
|              
|              
|              
|               | Investments in affiliates                     |                            |   |              |   |            |   |            |  |           |   |           |  |              |   |           |   |  |   |           |   |  |   |         |   |  |   | 61,814    |          
|               |                                               |                           
|              
|               |                                               | Total assets               |   |              |   |            |   |            |  |           |   |           |  |              |   |           |   |  |   |           |   |  |   |         |   |  |   | $         | 4,316,641 | 
|               |                                               |                           
|               | 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                           |                            | $ | 690,226      |   |            | $ | 412,799    |  |           | $ | 534,671   |  |              | $ | 1,131,580 |   |  | $ | 872,133   |   |  | $ | 11,379  |   |  | $ | 3,652,788 |          
|              
|              
|              
|              
|               | Investments in marketable equity securities   |                            |   |              |   |            |   |            |  |           |   |           |  |              |   |           |   |  |   |           |   |  |   |         |   |  |   | 247,958   |          
|              
|              
|              
|              
|               | Investments in affiliates                     |                            |   |              |   |            |   |            |  |           |   |           |  |              |   |           |   |  |   |           |   |  |   |         |   |  |   | 61,312    |          
|               |                                               |                           
|              
|               |                                               | Total assets               |   |              |   |            |   |            |  |           |   |           |  |              |   |           |   |  |   |           |   |  |   |         |   |  |   | $         | 3,962,058 | 
|               |                                               |                           
|               | 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   |          
|              
|              
|              
|              
|2002           |                                               |                            |   |              |   |            |   |            |  |           |   |           |  |              |   |           |   |  |   |           |   |  |   |         |   |  |   |          
|              
|              
|              
|              
|               | Operating revenues                            |                            | $ | 841,984      |   |            | $ | 343,552    |  |           | $ | 349,050   |  |              | $ | 428,492   |   |  | $ | 621,125   |   |  | $ |        |   |  | $ | 2,584,203 |          
|              
|              
|              
|              
|               | Income (loss) from operations                 |                            | $ | 109,006      |   |            | $ | 168,826    |  |           | $ | 25,728    |  |              | $ | 80,937    |   |  | $ | 20,512    |   |  | $ | (27,419 | ) |  | $ | 377,590   |          
|              
|              
|              
|              
|               | Equity in losses of affiliates                |                            |   |              |   |            |   |            |  |           |   |           |  |              |   |           |   |  |   |           |   |  |   |         |   |  |   | (19,308   | )        
|              
|              
|              
|              
|               | Interest expense, net                         |                            |   |              |   |            |   |            |  |           |   |           |  |              |   |           |   |  |   |           |   |  |   |         |   |  |   | (33,487   | )        
|              
|              
|              
|              
|               | Other income, net                             |                            |   |              |   |            |   |            |  |           |   |           |  |              |   |           |   |  |   |           |   |  |   |         |   |  |   | 28,873    |          
|               |                                               |                           
|              
|               |                                               | Income before income taxes |   |              |   |            |   |            |  |           |   |           |  |              |   |           |   |  |   |           |   |  |   |         |   |  |   | $         | 353,668   | 
|               |                                               |                           
|               | Identifiable assets                           |                            | $ | 697,606      |   |            | $ | 414,722    |  |           | $ | 488,345   |  |              | $ | 1,154,534 |   |  | $ | 549,390   |   |  | $ | 19,940  |   |  | $ | 3,324,537 |          
|              
|              
|              
|              
|               | Investments in marketable equity securities   |                            |   |              |   |            |   |            |  |           |   |           |  |              |   |           |   |  |   |           |   |  |   |         |   |  |   | 216,533   |          
|              
|              
|              
|              
|               | Investments in affiliates                     |                            |   |              |   |            |   |            |  |           |   |           |  |              |   |           |   |  |   |           |   |  |   |         |   |  |   | 70,703    |          
|               |                                               |                           
|              
|               |                                               | Total assets               |   |              |   |            |   |            |  |           |   |           |  |              |   |           |   |  |   |           |   |  |   |         |   |  |   | $         | 3,611,773 | 
|               |                                               |                           
|               | Depreciation of property, plant and equipment |                            | $ | 42,961       |   |            | $ | 11,187     |  |           | $ | 4,124     |  |              | $ | 88,751    |   |  | $ | 24,885    |   |  | $ |        |   |  | $ | 171,908   |          
|              
|              
|              
|              
|               | Amortization expense                          |                            | $ | 15           |   |            | $ |           |  |           | $ |          |  |              | $ | 155       |   |  | $ | 485       |   |  | $ |        |   |  | $ | 655       |          
|              
|              
|              
|              
|               | Pension credit (expense)                      |                            | $ | 18,902       |   |            | $ | 4,730      |  |           | $ | 23,814    |  |              | $ | (814      | ) |  | $ | (1,186    | ) |  | $ |        |   |  | $ | 45,446    |          
|              
|              
|              
|              
|               | Kaplan stock-based incentive compensation     |                            |   |              |   |            |   |            |  |           |   |           |  |              |   |           |   |  | $ | 34,531    |   |  |   |         |   |  | $ | 34,531    |          
|              
|              
|              
|              
|               | Capital expenditures                          |                            | $ | 27,280       |   |            | $ | 8,784      |  |           | $ | 1,672     |  |              | $ | 92,499    |   |  | $ | 22,757    |   |  | $ |        |   |  | $ | 152,992   |          











---



##### 



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




|                                 |                                        |                                                |         |         |         |         |         |         |         |   |         |         |         |   |         |         |         |  
|-------------------------------- | -------------------------------------- | ---------------------------------------------- | ------- | ------- | ------- | ------- | ------- | ------- | ------- | - | ------- | ------- | ------- | - | ------- | ------- | ------- | -
|                                 |                                        | First                                          |         | Second  |         | Third   |         | Fourth 
|                                 |                                        | 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) earnings 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 |        
|                                 |                                        |                                               











---



##### 



|                                         |                                        |                                                |         |         |         |           |         |          |         |   |         |        |         |   |         |         |         |  
|---------------------------------------- | -------------------------------------- | ---------------------------------------------- | ------- | ------- | ------- | --------- | ------- | -------- | ------- | - | ------- | ------ | ------- | - | ------- | ------- | ------- | -
|                                         |                                        | First                                          |         | Second  |         | Third     |         | Fourth  
|(in thousands, except per share amounts) |                                        | Quarter                                        |         | Quarter |         | Quarter(1 |         | )Quarter
|                                        
|2003 Quarterly Operating Results         |                                        |                                                |         |         |         |           |         |          |         |   |         |        |         |   |         |        
|                                         | Operating revenues                     |                                                |         |         |         |           |         |          |         |   |         |        |         |   |         |         |        
|                                        
|                                        
|                                        
|                                        
|                                         |                                        | Advertising                                    |         | $       | 277,121 |           |         | $        | 316,288 |   |         | $      | 285,143 |   |         | $       | 343,772 |  
|                                        
|                                        
|                                        
|                                        
|                                         |                                        | Circulation and subscriber                     |         |         | 172,036 |           |         |          | 176,348 |   |         |        | 175,595 |   |         |         | 182,269 |  
|                                        
|                                        
|                                        
|                                        
|                                         |                                        | Education                                      |         |         | 177,778 |           |         |          | 195,560 |   |         |        | 224,663 |   |         |         | 240,076 |  
|                                        
|                                        
|                                        
|                                        
|                                         |                                        | Other                                          |         |         | 13,505  |           |         |          | 18,744  |   |         |        | 20,678  |   |         |         | 19,335  |  
|                                         |                                        |                                               
|                                         |                                        |                                                | 640,440 |         |         |           | 706,940 |          |         |   | 706,079 |        |         |   | 785,452 |        
|                                         |                                        |                                               
|                                         | Operating costs and expenses           |                                                |         |         |         |           |         |          |         |   |         |        |         |   |         |         |        
|                                        
|                                        
|                                        
|                                        
|                                         |                                        | Operating                                      |         |         | 348,634 |           |         |          | 368,974 |   |         |        | 378,864 |   |         |         | 411,043 |  
|                                        
|                                        
|                                        
|                                        
|                                         |                                        | Selling, general and administrative            |         |         | 169,170 |           |         |          | 187,493 |   |         |        | 244,299 |   |         |         | 191,330 |  
|                                        
|                                        
|                                        
|                                        
|                                         |                                        | Depreciation of property, plant and equipment  |         |         | 43,395  |           |         |          | 43,212  |   |         |        | 42,420  |   |         |         | 44,821  |  
|                                        
|                                        
|                                        
|                                        
|                                         |                                        | Amortization of goodwill and other intangibles |         |         | 149     |           |         |          | 363     |   |         |        | 398     |   |         |         | 526     |  
|                                         |                                        |                                               
|                                         |                                        |                                                | 561,348 |         |         |           | 600,042 |          |         |   | 665,981 |        |         |   | 647,720 |        
|                                         |                                        |                                               
|                                         | Income from operations                 |                                                |         | 79,092  |         |           |         | 106,898  |         |   |         | 40,098 |         |   |         | 137,732 |        
|                                        
|                                        
|                                        
|                                        
|                                         |                                        | Equity in losses of affiliates                 |         |         | (2,642  | )         |         |          | (5,524  | ) |         |        | (1,116  | ) |         |         | (484    | )
|                                        
|                                        
|                                        
|                                        
|                                         |                                        | Interest income                                |         |         | 114     |           |         |          | 458     |   |         |        | 189     |   |         |         | 191     |  
|                                        
|                                        
|                                        
|                                        
|                                         |                                        | Interest expense                               |         |         | (7,237  | )         |         |          | (6,658  | ) |         |        | (7,037  | ) |         |         | (6,872  | )
|                                        
|                                        
|                                        
|                                        
|                                         |                                        | Other income (expense), net                    |         |         | 48,135  |           |         |          | 2,274   |   |         |        | 1,565   |   |         |         | 3,412   |  
|                                         |                                        |                                               
|                                         | Income before income taxes             |                                                |         | 117,462 |         |           |         | 97,448   |         |   |         | 33,699 |         |   |         | 133,979 |        
|                                        
|                                        
|                                        
|                                        
|                                         | Provision for income taxes             |                                                |         | 44,400  |         |           |         | 36,800   |         |   |         | 13,800 |         |   |         | 46,500  |        
|                                         |                                        |                                               
|                                         | Net income                             |                                                |         | 73,062  |         |           |         | 60,648   |         |   |         | 19,899 |         |   |         | 87,479  |        
|                                        
|                                        
|                                        
|                                        
|                                         | Redeemable preferred stock dividends   |                                                |         | (517    | )       |           |         | (258     | )       |   |         | (252   | )       |   |         |        |        
|                                         |                                        |                                               
|                                        
|                                         | Net income available for common shares |                                                | $       | 72,545  |         |           | $       | 60,390   |         |   | $       | 19,647 |         |   | $       | 87,479  |        
|                                         |                                        |                                               
|                                         | Basic earnings per common share        |                                                | $       | 7.62    |         |           | $       | 6.34     |         |   | $       | 2.06   |         |   | $       | 9.17    |        
|                                         |                                        |                                               
|                                         | Diluted earnings per common share      |                                                | $       | 7.59    |         |           | $       | 6.32     |         |   | $       | 2.06   |         |   | $       | 9.15    |        
|                                         |                                        |                                               
|                                         | Basic average shares outstanding       |                                                |         | 9,526   |         |           |         | 9,527    |         |   |         | 9,532  |         |   |         | 9,536   |        
|                                        
|                                        
|                                        
|                                        
|                                         | Diluted average shares outstanding     |                                                |         | 9,553   |         |           |         | 9,555    |         |   |         | 9,556  |         |   |         | 9,563   |        
|                                        
|                                        
|                                        
|                                        
|                                         | 2003 Quarterly comprehensive income    |                                                | $       | 61,417  |         |           | $       | 79,992   |         |   | $       | 24,158 |         |   | $       | 106,596 |        
|                                         |                                        |                                               







|                                                                                                                          |  |         |      |         |  |         |       |         |  |  |  |  |  |   |       |  
|------------------------------------------------------------------------------------------------------------------------- |  | ------- | ---- | ------- |  | ------- | ----- | ------- |  |  |  |  |  | - | ----- | -
|                                                                                                                          |  | First   |      | Second  |  | Third   |       | Fourth 
|                                                                                                                          |  | Quarter |      | Quarter |  | Quarter |       | Quarter
|                                                                                                                         
|Early retirement program charges ($1.3 million and
    $19.5 million in the second and fourth quarters,
    respectively) |  |         |      |         |  | $       | (0.14 | )       |  |  |  |  |  | $ | (2.04 | )
|                                                                                                                         
|                                                                                                                         
|                                                                                                                         
|                                                                                                                         
|Gain on sale of IHT ($32.3 million)                                                                                       |  | $       | 3.38 |         |  |         |       |         |  |  |  |  |  |   |       |  
|                                                                                                                         
|                                                                                                                         
|                                                                                                                         
|                                                                                                                         
|Gain on sale of land ($25.5 million)                                                                                      |  |         |      |         |  |         |       |         |  |  |  |  |  | $ | 2.66  |  
|                                                                                                                         
|                                                                                                                         
|                                                                                                                         
|                                                                                                                         
|Kaplan stock compensation expense for 10% premium on Kaplan
    stock option offer ($6.4 million)                         |  |         |      |         |  |         |       |         |  |  |  |  |  | $ | (0.67 | )
|                                                                                                                         
|                                                                                                                         
|                                                                                                                         
|                                                                                                                         
|Establishment of Kaplan Educational Foundation ($3.9 million)                                                             |  |         |      |         |  |         |       |         |  |  |  |  |  | $ | (0.41 | )
|                                                                                                                          |  |        









---



##### 













---



##### 



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 29, 2002 |                                                          |             |            |            |  |            |             |             |  |   |             |             |  |   |            |           
|                            
|                            
|                            
|                            
|                             | Allowance for doubtful accounts and returns              |             | $          | 67,969,000 |  |            | $           | 91,091,000  |  |   | $           | 98,820,000  |  |   | $          | 60,240,000 | 
|                            
|                            
|                            
|                            
|                             | Allowance for advertising rate adjustments and discounts |             |            | 5,279,000  |  |            |             | 4,938,000   |  |   |             | 5,061,000   |  |   |            | 5,156,000  | 
|                             |                                                          |            
|                             |                                                          | $           | 73,248,000 |            |  | $          | 96,029,000  |             |  | $ | 103,881,000 |             |  | $ | 65,396,000 |           
|                             |                                                          |            
|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 |           
|                             |                                                          |            









---



##### 



TEN-YEAR SUMMARY OF SELECTED HISTORICAL FINANCIAL DATA




|                                         |                                                                                            |                                                            |   |           |       |      |   |           |       |  |   |           |       |  
|---------------------------------------- | ------------------------------------------------------------------------------------------ | ---------------------------------------------------------- | - | --------- | ----- | ---- | - | --------- | ----- |  | - | --------- | ----- | -
|(in thousands, except per share amounts) |                                                                                            | 2004                                                       |   | 2003      |       | 2002
|                                        
|                                        
|                                        
|                                        
|                                        
|Results of Operations                    |                                                                                            |                                                            |   |           |       |      |   |           |       |  |   |          
|                                        
|                                        
|                                        
|                                        
|                                         | Operating revenues                                                                         |                                                            | $ | 3,300,104 |       |      | $ | 2,838,911 |       |  | $ | 2,584,203 |      
|                                        
|                                        
|                                        
|                                        
|                                         | Income from operations                                                                     |                                                            | $ | 563,006   |       |      | $ | 363,820   |       |  | $ | 377,590   |      
|                                        
|                                        
|                                        
|                                        
|                                         | Income before cumulative effect of change in accounting principle                          |                                                            | $ | 332,732   |       |      | $ | 241,088   |       |  | $ | 216,368   |      
|                                        
|                                        
|                                        
|                                        
|                                         | Cumulative effect of change in method of accounting for goodwill
    and other intangibles |                                                            |   |          |       |      |   |          |       |  |   | (12,100   | )    
|                                         |                                                                                            |                                                           
|                                         | Net income                                                                                 |                                                            | $ | 332,732   |       |      | $ | 241,088   |       |  | $ | 204,268   |      
|                                         |                                                                                            |                                                           
|                                        
|                                        
|                                        
|                                        
|Per Share Amounts                        |                                                                                            |                                                            |   |           |       |      |   |           |       |  |   |          
|                                         | Basic earnings per common share                                                            |                                                            |   |           |       |      |   |           |       |  |   |           |      
|                                        
|                                        
|                                        
|                                        
|                                         |                                                                                            | Before cumulative effect of change in accounting principle |   | $         | 34.69 |      |   | $         | 25.19 |  |   | $         | 22.65 |  
|                                        
|                                        
|                                        
|                                        
|                                         |                                                                                            | Cumulative effect of change in accounting principle        |   |           |      |      |   |           |      |  |   |           | (1.27 | )
|                                         |                                                                                            |                                                           
|                                         |                                                                                            | Net income available for common shares                     |   | $         | 34.69 |      |   | $         | 25.19 |  |   | $         | 21.38 |  
|                                         |                                                                                            |                                                           
|                                         |                                                                                            | Basic average shares outstanding                           |   |           | 9,563 |      |   |           | 9,530 |  |   |           | 9,504 |  
|                                         | Diluted earnings per share                                                                 |                                                            |   |           |       |      |   |           |       |  |   |           |      
|                                        
|                                        
|                                        
|                                        
|                                         |                                                                                            | Before cumulative effect of change in accounting principle |   | $         | 34.59 |      |   | $         | 25.12 |  |   | $         | 22.61 |  
|                                        
|                                        
|                                        
|                                        
|                                         |                                                                                            | Cumulative effect of change in accounting principle        |   |           |      |      |   |           |      |  |   |           | (1.27 | )
|                                         |                                                                                            |                                                           
|                                         |                                                                                            | Net income available for common shares                     |   | $         | 34.59 |      |   | $         | 25.12 |  |   | $         | 21.34 |  
|                                         |                                                                                            |                                                           
|                                         |                                                                                            | Diluted average shares outstanding                         |   |           | 9,592 |      |   |           | 9,555 |  |   |           | 9,523 |  
|                                        
|                                        
|                                        
|                                        
|                                         | Cash dividends                                                                             |                                                            | $ | 7.00      |       |      | $ | 5.80      |       |  | $ | 5.60      |      
|                                        
|                                        
|                                        
|                                        
|                                         | Common shareholders equity                                                                |                                                            | $ | 251.93    |       |      | $ | 217.46    |       |  | $ | 193.18    |      
|                                        
|                                        
|                                        
|                                        
|Financial Position                       |                                                                                            |                                                            |   |           |       |      |   |           |       |  |   |          
|                                        
|                                        
|                                        
|                                        
|                                         | Current assets                                                                             |                                                            | $ | 754,367   |       |      | $ | 556,336   |       |  | $ | 410,834   |      
|                                        
|                                        
|                                        
|                                        
|                                         | Working capital (deficit)                                                                  |                                                            |   | 66,206    |       |      |   | (184,661  | )     |  |   | (353,157  | )    
|                                        
|                                        
|                                        
|                                        
|                                         | Property, plant and equipment                                                              |                                                            |   | 1,089,952 |       |      |   | 1,051,373 |       |  |   | 1,094,400 |      
|                                        
|                                        
|                                        
|                                        
|                                         | Total assets                                                                               |                                                            |   | 4,316,641 |       |      |   | 3,962,058 |       |  |   | 3,611,773 |      
|                                        
|                                        
|                                        
|                                        
|                                         | Long-term debt                                                                             |                                                            |   | 425,889   |       |      |   | 422,471   |       |  |   | 405,547   |      
|                                        
|                                        
|                                        
|                                        
|                                         | Common shareholders equity                                                                |                                                            |   | 2,412,482 |       |      |   | 2,074,941 |       |  |   | 1,837,293 |      

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


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

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









---



##### 








|                      |                                                                                            |                                                            |   |           |       |      |   |           |       |      |   |           |        |      |   |           |        |  |   |           |        |  |   |           |        |  |   |           |        | 
|--------------------- | ------------------------------------------------------------------------------------------ | ---------------------------------------------------------- | - | --------- | ----- | ---- | - | --------- | ----- | ---- | - | --------- | ------ | ---- | - | --------- | ------ |  | - | --------- | ------ |  | - | --------- | ------ |  | - | --------- | ------ | 
|                      |                                                                                            | 2001                                                       |   | 2000      |       | 1999 |   | 1998      |       | 1997 |   | 1996      |        | 1995
|                      |                                                                                            |                                                           
|                     
|                     
|                     
|                     
|Results of Operations |                                                                                            |                                                            |   |           |       |      |   |           |       |      |   |           |        |      |   |           |        |  |   |           |        |  |   |           |        |  |   |          
|                      | Operating revenues                                                                         |                                                            | $ | 2,411,024 |       |      | $ | 2,409,633 |       |      | $ | 2,212,177 |        |      | $ | 2,107,593 |        |  | $ | 1,952,986 |        |  | $ | 1,851,058 |        |  | $ | 1,716,971 |       
|                      | Income from operations                                                                     |                                                            | $ | 219,932   |       |      | $ | 339,882   |       |      | $ | 388,453   |        |      | $ | 378,897   |        |  | $ | 381,351   |        |  | $ | 337,169   |        |  | $ | 271,018   |       
|                      | Income before cumulative effect of change in accounting principle                          |                                                            | $ | 229,639   |       |      | $ | 136,470   |       |      | $ | 225,785   |        |      | $ | 417,259   |        |  | $ | 281,574   |        |  | $ | 220,817   |        |  | $ | 190,096   |       
|                      | Cumulative effect of change in method of accounting for goodwill
    and other intangibles |                                                            |   |          |       |      |   |          |       |      |   |          |        |      |   |          |        |  |   |          |        |  |   |          |        |  |   |          |       
|                      |                                                                                            |                                                           
|                      | Net income                                                                                 |                                                            | $ | 229,639   |       |      | $ | 136,470   |       |      | $ | 225,785   |        |      | $ | 417,259   |        |  | $ | 281,574   |        |  | $ | 220,817   |        |  | $ | 190,096   |       
|                      |                                                                                            |                                                           
|                     
|                     
|                     
|                     
|Per Share Amounts     |                                                                                            |                                                            |   |           |       |      |   |           |       |      |   |           |        |      |   |           |        |  |   |           |        |  |   |           |        |  |   |          
|                      | Basic earnings per common share                                                            |                                                            |   |           |       |      |   |           |       |      |   |           |        |      |   |           |        |  |   |           |        |  |   |           |        |  |   |           |       
|                      |                                                                                            | Before cumulative effect of change in accounting principle |   | $         | 24.10 |      |   | $         | 14.34 |      |   | $         | 22.35  |      |   | $         | 41.27  |  |   | $         | 26.23  |  |   | $         | 20.08  |  |   | $         | 17.16  | 
|                      |                                                                                            | Cumulative effect of change in accounting principle        |   |           |      |      |   |           |      |      |   |           |       |      |   |           |       |  |   |           |       |  |   |           |       |  |   |           |       | 
|                      |                                                                                            |                                                           
|                      |                                                                                            | Net income available for common shares                     |   | $         | 24.10 |      |   | $         | 14.34 |      |   | $         | 22.35  |      |   | $         | 41.27  |  |   | $         | 26.23  |  |   | $         | 20.08  |  |   | $         | 17.16  | 
|                      |                                                                                            |                                                           
|                      |                                                                                            | Basic average shares outstanding                           |   |           | 9,486 |      |   |           | 9,445 |      |   |           | 10,061 |      |   |           | 10,087 |  |   |           | 10,700 |  |   |           | 10,964 |  |   |           | 11,075 | 
|                      | Diluted earnings per share                                                                 |                                                            |   |           |       |      |   |           |       |      |   |           |        |      |   |           |        |  |   |           |        |  |   |           |        |  |   |           |       
|                      |                                                                                            | Before cumulative effect of change in accounting principle |   | $         | 24.06 |      |   | $         | 14.32 |      |   | $         | 22.30  |      |   | $         | 41.10  |  |   | $         | 26.15  |  |   | $         | 20.05  |  |   | $         | 17.15  | 
|                      |                                                                                            | Cumulative effect of change in accounting principle        |   |           |      |      |   |           |      |      |   |           |       |      |   |           |       |  |   |           |       |  |   |           |       |  |   |           |       | 
|                      |                                                                                            |                                                           
|                      |                                                                                            | Net income available for common shares                     |   | $         | 24.06 |      |   | $         | 14.32 |      |   | $         | 22.30  |      |   | $         | 41.10  |  |   | $         | 26.15  |  |   | $         | 20.05  |  |   | $         | 17.15  | 
|                      |                                                                                            |                                                           
|                      |                                                                                            | Diluted average shares outstanding                         |   |           | 9,500 |      |   |           | 9,460 |      |   |           | 10,082 |      |   |           | 10,129 |  |   |           | 10,733 |  |   |           | 10,980 |  |   |           | 11,086 | 
|                      | Cash dividends                                                                             |                                                            | $ | 5.60      |       |      | $ | 5.40      |       |      | $ | 5.20      |        |      | $ | 5.00      |        |  | $ | 4.80      |        |  | $ | 4.60      |        |  | $ | 4.40      |       
|                      | Common shareholders equity                                                                |                                                            | $ | 177.30    |       |      | $ | 156.55    |       |      | $ | 144.90    |        |      | $ | 157.34    |        |  | $ | 117.36    |        |  | $ | 121.24    |        |  | $ | 107.60    |       
|                     
|                     
|                     
|                     
|Financial Position    |                                                                                            |                                                            |   |           |       |      |   |           |       |      |   |           |        |      |   |           |        |  |   |           |        |  |   |           |        |  |   |          
|                      | Current assets                                                                             |                                                            | $ | 426,603   |       |      | $ | 405,067   |       |      | $ | 476,159   |        |      | $ | 404,878   |        |  | $ | 308,492   |        |  | $ | 382,631   |        |  | $ | 406,570   |       
|                      | Working capital (deficit)                                                                  |                                                            |   | (37,233   | )     |      |   | (3,730    | )     |      |   | (346,389  | )      |      |   | 15,799    |        |  |   | (300,264  | )      |  |   | 100,995   |        |  |   | 98,393    |       
|                      | Property, plant and equipment                                                              |                                                            |   | 1,098,211 |       |      |   | 927,061   |       |      |   | 854,906   |        |      |   | 841,062   |        |  |   | 653,750   |        |  |   | 511,363   |        |  |   | 457,359   |       
|                      | Total assets                                                                               |                                                            |   | 3,588,844 |       |      |   | 3,200,743 |       |      |   | 2,986,944 |        |      |   | 2,729,661 |        |  |   | 2,077,317 |        |  |   | 1,870,411 |        |  |   | 1,732,893 |       
|                      | Long-term debt                                                                             |                                                            |   | 883,078   |       |      |   | 873,267   |       |      |   | 397,620   |        |      |   | 395,000   |        |  |   |          |        |  |   |          |        |  |   |          |       
|                      | Common shareholders equity                                                                |                                                            |   | 1,683,485 |       |      |   | 1,481,007 |       |      |   | 1,367,790 |        |      |   | 1,588,103 |        |  |   | 1,184,074 |        |  |   | 1,322,803 |        |  |   | 1,184,204 |       

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                                                              

1995


|  |                                                                                                                      
|- | ---------------------------------------------------------------------------------------------------------------------
| | gain of $8.4 million ($0.75 per share) from the sale of the
    Companys investment in American PCS, LP             
| | charge of $5.6 million ($0.51 per share) for the write-off
    of the Companys interest in Mammoth Micro Productions









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##### 



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 11, 2004, among
    the Company, Citibank, N.A., JP Morgan Chase Bank, Wachovia
    Bank, N.A., SunTrust Bank, The Bank of New York and Riggs 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 26, 2004).                                                                                                                 
|       
|        | 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
    Riggs 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
    adopted January 20, 2005 (incorporated by reference to
    Exhibit 10.1 to the Companys Current Report on
    Form 8-K dated January 20, 2005).*                                                                                                                                                                                                                                                    
|       
|        | 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 February 24, 2005
    (incorporated by reference to Exhibit 10.1 to the
    Companys Current Report on Form 8-K dated
    February 28, 2005).*                                                                                                                                                                                                                        
|       
|        | 11 |             |  | Calculation of earnings per share of common stock.                                                                                                                                                                                                                                                                                                                                                                                                                  
|       
|        | 21 |             |  | List of subsidiaries of the Company.                                                                                                                                                                                                                                                                                                                                                                                                                                
|       
|        | 23 |             |  | Consent of independent accountants.                                                                                                                                                                                                                                                                                                                                                                                                                                 
|       
|        | 24 |             |  | Power of attorney dated February 24, 2005.                                                                                                                                                                                                                                                                                                                                                                                                                          
|       
|        | 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.