Fair Value Measurements

6 Months Ended

Jul. 03, 2011

Fair Value Measurements

Fair Value Measurements

Note 11: Fair Value Measurements

Fair value measurements are determined based on the assumptions that a market participant would use in pricing an asset or liability based on a three-tiered hierarchy that draws a distinction between market participant assumptions based on (i) observable inputs, such as quoted prices in active markets (Level 1); (ii) inputs other than quoted prices in active markets that are observable either directly or indirectly (Level 2); and (iii) unobservable inputs that require the Company to use present value and other valuation techniques in the determination of fair value (Level 3). Financial assets and liabilities are classified in their entirety based on the lowest level of input that is significant to the fair value measure. The Company's assessment of the significance of a particular input to the fair value measurements requires judgment and may affect the valuation of the assets and liabilities being measured and their placement within the fair value hierarchy.

The Company's financial assets and liabilities measured at fair value on a recurring basis were as follows (in thousands):

	Fair Value		Level 1		Level 2
At July 3, 2011:
Assets:
Money market investments(1)	$	100,324	$	—	$	100,324
Marketable equity securities(3)		325,805		325,805		—
Other current investments(4)		40,335		14,529		25,806
Total financial assets	$	466,464	$	340,334	$	126,130
Liabilities:
Deferred compensation plan liabilities(5)	$	65,941	$	—	$	65,941
7.25% unsecured notes(6)		463,080		—		463,080
Total financial liabilities	$	529,021	$	—	$	529,021

	Fair Value		Level 1		Level 2
At January 2, 2011:
Assets:
Money market investments(2)	$	308,927	$	—	$	308,927
Marketable equity securities(3)		340,910		340,910		—
Other current investments(4)		32,840		11,835		21,005
Total financial assets	$	682,677	$	352,745	$	329,932
Liabilities:
Deferred compensation plan liabilities(5)	$	69,226	$	—	$	69,226
7.25% unsecured notes(6)		457,200		—		457,200
Total financial liabilities	$	526,426	$	—	$	526,426

(1) The Company's money market investments at July 3, 2011 are included in cash and cash equivalents.

(2) The Company's money market investments at January 2, 2011 are included in cash, cash equivalents and restricted cash.

(3) The Company's investments in marketable equity securities are classified as available-for-sale.

(4) Includes U.S. Government Securities, corporate bonds, mutual funds and time deposits (with original maturities greater than 90 days, but less than one year).

(5) Includes The Washington Post Company Deferred Compensation Plan and supplemental savings plan benefits under The Washington Post Company Supplemental Executive Retirement Plan, which are included in accrued compensation and related benefits.

(6) See Note 6 for the carrying amount of these notes.

For assets that are measured using quoted prices in active markets, the total fair value is the published market price per unit multiplied by the number of units held without consideration of transaction costs. Assets and liabilities that are measured using significant other observable inputs are primarily valued by reference to quoted prices of similar assets or liabilities in active markets, adjusted for any terms specific to that asset or liability.