Washington Post Company (WPO)

Note 5: Borrowings

The Company’s borrowings consist of the following (in millions):

The Company’s commercial paper borrowings at December 28, 2008 were at an average interest rate of 0.2 percent.

In January 2009, the Company issued $400 million in unsecured ten-year fixed-rate notes due February 1, 2019. The notes have a coupon rate of 7.25% per annum, payable semi-annually on February 1 and August 1, beginning August 1, 2009. The Company used the net proceeds from the sale of the notes and other cash to repay $400 million of 5.5% notes that matured on February 15, 2009. Under the terms of the Notes, unless the Company has exercised its right to redeem the Notes, the Company is required to offer to repurchase the Notes in cash at 101% of the principal amount, plus accrued and unpaid interest, upon the occurrence of both a Change of Control and Below Investment Grade Rating Events as described in the Prospectus Supplement of January 27, 2009.

The Company’s other indebtedness at March 29, 2009 and December 28, 2008 is at interest rates of 5% to 6% and matures during 2009.

During the first quarter of 2009 and 2008, the Company had average borrowings outstanding of approximately $488.5 million and $490.8 million, respectively, at average annual interest rates of approximately 6.4 percent and 5.0 percent, respectively. During the first quarter of 2009 and 2008, the Company incurred net interest expense of $7.1 million and $4.4 million, respectively.

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Note 5: Borrowings

Debt consists of the following (in millions):

The Company’s commercial paper borrowings at September 28, 2008 and December 30, 2007 were at average interest rates of 1.4 percent and 4.5 percent, respectively.

The Company’s $399.9 million unsecured notes that are due February 15, 2009 are now classified as current liabilities at September 28, 2008.

The Company’s other indebtedness at September 28, 2008 and December 30, 2007 is at interest rates of 5% to 8% and matures from 2008 to 2009.

During the third quarter of 2008 and 2007, the Company had average borrowings outstanding of approximately $525.3 million and $405.7 million, respectively, at average annual interest rates of approximately 4.7 percent and 5.5 percent, respectively. During the third quarter of 2008 and 2007, the Company incurred net interest expense of $5.7 million and $3.0 million, respectively.

During the first nine months of 2008 and 2007, the Company had average borrowings outstanding of approximately $492.7 million and $405.6 million, respectively, at average annual interest rates of approximately 4.9 percent and 5.5 percent, respectively. During the first nine months of 2008 and 2007, the Company incurred net interest expense of $15.0 million and $9.1 million, respectively.

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Note 5: Borrowings

Long-term debt consists of the following (in millions):

The Company’s commercial paper borrowings at June 29, 2008 and December 30, 2007 were at average interest rates of 2.2 percent and 4.5 percent, respectively.

The Company’s $399.8 million unsecured notes that are due February 15, 2009 are now classified as current liabilities at June 29, 2008.

The Company’s other indebtedness at June 29, 2008 and December 30, 2007 is at interest rates of 5% to 8% and matures from 2008 to 2009.

During the second quarter of 2008 and 2007, the Company had average borrowings outstanding of approximately $457.3 million and $406.1 million, respectively, at average annual interest rates of approximately 5.1 percent and 5.5 percent, respectively. During the second quarter of 2008 and 2007, the Company incurred net interest expense of $4.8 million and $3.5 million, respectively.

During the first six months of 2008 and 2007, the Company had average borrowings outstanding of approximately $475.0 million and $405.5 million, respectively, at average annual interest rates of approximately 5.1 percent and 5.5 percent, respectively. During the first six months of 2008 and 2007, the Company incurred net interest expense of $9.3 million and $6.1 million, respectively.