Graham (GHC) 8-K Completion of Acquisition or Disposition of Assets

Exhibit 99.1

UNAUDITED PRO FORMA

CONDENSED CONSOLIDATED FINANCIAL INFORMATION

On September 30, 2010, The Washington Post Company (“the Company”) completed the sale of Newsweek magazine to Harman Media, LLC and Dr. Sidney Harman. Under the terms of the asset purchase agreement, the buyer assumed Newsweek’s subscription obligations and received Newsweek’s intellectual property, target working capital and selected equipment used in the business. The Company retained the pension assets and liabilities and certain employee obligations, including severance, and other liabilities arising prior to the sale.

The accompanying unaudited pro forma condensed consolidated balance sheet presents the Company’s financial position assuming the sale of Newsweek magazine occurred on July 4, 2010.

The accompanying unaudited pro forma condensed consolidated statements of income present the Company’s results of operations for each of the three fiscal years in the period ended January 3, 2010 assuming the sale of Newsweek magazine occurred on January 1, 2007. The Company reported the disposition of Newsweek magazine as a discontinued operation in accordance with Financial Accounting Standards Board (“FASB”) Accounting Standards Codification (“ASC”) Topic 205, “Presentation of Financial Statements” (“ASC 205”) for the twenty six weeks ended July 4, 2010 and June 28, 2009 in its quarterly report on Form 10-Q for the quarterly period ended July 4, 2010, and therefore the Company did not include the unaudited pro forma condensed consolidated statements of income for these periods in this Current Report on Form 8-K.

The unaudited pro forma condensed consolidated financial statements have been prepared using assumptions and estimates that the Company believes are reasonable under the circumstances and are intended for informational purposes only. They are not necessarily indicative of the financial results that would have occurred if the transactions described herein had taken place on the dates indicated, nor are they indicative of the future consolidated results of the Company. However, management believes that the estimates and assumptions used provide a reasonable basis for presenting the significant effects of the sale of Newsweek magazine. Management also believes the pro forma adjustments give appropriate effect to the estimates and assumptions and are applied in conformity with accounting principles generally accepted in the United States of America.

The accompanying unaudited pro forma condensed consolidated balance sheet as of July 4, 2010 and the unaudited pro forma condensed consolidated statements of income for each of the three fiscal years in the period ended January 3, 2010 should be read in conjunction with the historical financial statements of the Company for the twenty six weeks ended July 4, 2010 (unaudited) and for each of the three fiscal years in the period ended January 3, 2010 (audited), including the related notes, filed with the Securities and Exchange Commission, respectively, on Form 10-Q on August 11, 2010 and on Form 10-K on March 2, 2010.

The following is a brief description of the amounts recorded under each of the column headings in the accompanying unaudited condensed consolidated balance sheet and the unaudited condensed consolidated statements of income:

Historical TWPC

This column reflects the Company’s historical financial position as of July 4, 2010 and historical operating results for each of the three years in the period ended January 3, 2010, prior to any adjustment for the sale of Newsweek magazine.

Sale of Newsweek

This column reflects Newsweek magazine’s historical financial position of the assets sold and liabilities assumed as of July 4, 2010 and its historical operating results for each of the three fiscal years in the period ended January 3, 2010, and the pro forma adjustments that arise as a direct result of the sale of Newsweek magazine. These adjustments are more fully described in the notes to the accompanying unaudited pro forma condensed consolidated financial information.

THE WASHINGTON POST COMPANY

UNAUDITED PRO FORMA CONDENSED CONSOLIDATED BALANCE SHEET

AS OF JULY 4, 2010

(in thousands)	Historical TWPC			Sale of Newsweek			The Company Pro Forma
				(1)
Assets
Current assets
Cash and cash equivalents	$	659,027		$	—		$	659,027
Investments in marketable equity securities and other investments		392,515			—			392,515
Accounts receivable, net		374,901			—			374,901
Deferred income taxes		15,376			—			15,376
Inventories		9,064			—			9,064
Other current assets		65,622			—			65,622
Current assets of discontinued operations		27,723			(27,723	)		—
Total current assets		1,544,228			(27,723	)		1,516,505
Property, plant, and equipment, net		1,175,493			—			1,175,493
Investment in affiliates		42,308			—			42,308
Goodwill, net		1,368,605			—			1,368,605
Indefinite-lived intangible assets, net		530,406			—			530,406
Amortized intangible assets, net		71,546			—			71,546
Prepaid pension cost		412,838			1,206			414,044
Deferred charges and other assets		57,430			—			57,430
Noncurrent assets of discontinued operations		27,201			(27,201	)		—
Total assets	$	5,230,055		$	(53,718	)	$	5,176,337
Liabilities and Equity
Current liabilities
Accounts payable and accrued liabilities	$	552,321		$	22,236		$	574,557
Income taxes payable		24,214			3,874			28,088
Deferred revenue		375,534			—			375,534
Dividends declared		20,930			—			20,930
Short-term borrowings		3,037			—			3,037
Current liabilities of discontinued operations		50,681			(50,681	)		—
Total current liabilities		1,026,717			(24,571	)		1,002,146
Postretirement benefits other than pensions		74,817			(8,533	)		66,284
Accrued compensation and related benefits		210,448			—			210,448
Other liabilities		123,696			—			123,696
Deferred income taxes		404,382			—			404,382
Long-term debt		396,443			—			396,443
Noncurrent liabilities of discontinued operations		14,174			(14,174	)		—
Total liabilities		2,250,677			(47,278	)		2,203,399
Redeemable noncontrolling interest		6,843			—			6,843
Redeemable preferred stock		11,526			—			11,526
Preferred stock		—			—			—
Common shareholders’ equity
Common stock		20,000			—			20,000
Capital in excess of par value		243,987			—			243,987
Retained earnings		4,399,356			(6,440	)		4,392,916
Accumulated other comprehensive income (loss)
Cumulative foreign currency translation adjustment		13,570			—			13,570
Unrealized gain on available-for-sale securities		81,709			—			81,709
Unrealized loss on pensions and other postretirement plans		(4,094	)		—			(4,094	)
Cost of Class B common stock held in treasury		(1,794,034	)		—			(1,794,034	)
Total The Washington Post Company common shareholders’ equity		2,960,494			(6,440	)		2,954,054
Noncontrolling interests		515			—			515
Total equity		2,961,009			(6,440	)		2,954,569
Total liabilities and equity	$	5,230,055		$	(53,718	)	$	5,176,337

Note:

(1) This column includes the elimination of the historical assets and liabilities of Newsweek magazine estimated to be transferred to the buyer as part of the sale as if the transaction occurred on July 4, 2010. This column also reflects the estimated impact of the Newsweek sale, including certain employee obligations, such as severance, pension and other postretirement benefit obligations, and income taxes payable.

2

THE WASHINGTON POST COMPANY

UNAUDITED PRO FORMA CONDENSED CONSOLIDATED STATEMENT OF INCOME

FISCAL YEAR ENDED JANUARY 3, 2010

(in thousands, except per share amounts)	Historical TWPC			Sale of Newsweek			The Company Pro Forma
				(1)
Operating Revenues
Education	$	2,636,638		$	—		$	2,636,638
Advertising		858,109			(79,951	)		778,158
Circulation and subscriber		932,402			(86,554	)		845,848
Other		142,582			(16,710	)		125,872
		4,569,731			(183,215	)		4,386,516
Operating Costs and Expenses
Operating		2,002,938			(134,191	)		1,868,747
Selling, general and administrative		2,024,901			(108,724	)		1,916,177
Depreciation of property, plant and equipment		295,871			(4,187	)		291,684
Amortization of intangible assets		26,642			—			26,642
Impairment of goodwill and other long-lived assets		25,387			—			25,387
		4,375,739			(247,102	)		4,128,637
Income from Operations		193,992			63,887			257,879
Equity in losses of affiliates		(29,421	)		—			(29,421	)
Interest income		2,597			—			2,597
Interest expense		(31,565	)		—			(31,565	)
Other income, net		13,197			—			13,197
Income before Income Taxes		148,800			63,887			212,687
Provision for Income Taxes		57,600			18,800			76,400
Income from Continuing Operations		91,200			45,087			136,287
Loss from Continuing Operations Attributable to Noncontrolling Interests		1,574			—			1,574
Income from Continuing Operations Attributable to The Washington Post Company		92,774			45,087			137,861
Redeemable Preferred Stock Dividends		(928	)		—			(928	)
Income from Continuing Operations Available for Common Shares	$	91,846		$	45,087		$	136,933
Basic income per common share from continuing operations	$	9.78					$	14.61
Basic average number of common shares outstanding		9,332						9,332
Diluted income per common share from continuing operations	$	9.78					$	14.57
Diluted average number of common shares outstanding		9,392						9,392

Note:

(1) The adjustment reflects the elimination of the results of operations of Newsweek magazine as if the transaction occurred on January 1, 2007. The elimination excludes Newsweek magazine’s historical pension credit since the associated pension assets and liabilities will be retained by the Company.

3

THE WASHINGTON POST COMPANY

UNAUDITED PRO FORMA CONDENSED CONSOLIDATED STATEMENT OF INCOME

FISCAL YEAR ENDED DECEMBER 28, 2008

(in thousands, except per share amounts)	Historical TWPC			Sale of Newsweek			The Company Pro Forma
				(1)
Operating Revenues
Education	$	2,331,580		$	—		$	2,331,580
Advertising		1,083,084			(128,715	)		954,369
Circulation and subscriber		901,898			(100,226	)		801,672
Other		145,018			(20,924	)		124,094
		4,461,580			(249,865	)		4,211,715
Operating Costs and Expenses
Operating		2,023,816			(159,283	)		1,864,533
Selling, general and administrative		1,839,986			(146,242	)		1,693,744
Depreciation of property, plant and equipment		265,606			(2,052	)		263,554
Amortization of intangible assets		22,525			—			22,525
Impairment of goodwill and other long-lived assets		135,439			—			135,439
		4,287,372			(307,577	)		3,979,795
Income from Operations		174,208			57,712			231,920
Equity in losses of affiliates		(7,837	)		—			(7,837	)
Interest income		5,672			—			5,672
Interest expense		(24,658	)		—			(24,658	)
Other expense, net		(2,189	)		—			(2,189	)
Income before Income Taxes		145,196			57,712			202,908
Provision for Income Taxes		79,400			27,200			106,600
Income from Continuing Operations		65,796			30,512			96,308
Income from Continuing Operations Attributable to Noncontrolling Interests		(74	)		—			(74	)
Income from Continuing Operations Attributable to The Washington Post Company		65,722			30,512			96,234
Redeemable Preferred Stock Dividends		(946	)		—			(946	)
Income from Continuing Operations Available for Common Shares	$	64,776		$	30,512		$	95,288
Basic income per common share from continuing operations	$	6.89					$	10.13
Basic average number of common shares outstanding		9,408						9,408
Diluted income per common share from continuing operations	$	6.87					$	10.11
Diluted average number of common shares outstanding		9,430						9,430

Note:

(1) The adjustment reflects the elimination of the results of operations of Newsweek magazine as if the transaction occurred on January 1, 2007. The elimination excludes Newsweek magazine’s historical pension credit since the associated pension assets and liabilities will be retained by the Company.

4

THE WASHINGTON POST COMPANY

UNAUDITED PRO FORMA CONDENSED CONSOLIDATED STATEMENT OF INCOME

FISCAL YEAR ENDED DECEMBER 30, 2007

(in thousands, except per share amounts)	Historical TWPC			Sale of Newsweek			The Company Pro Forma
				(1)
Operating Revenues
Education	$	2,030,889		$	—		$	2,030,889
Advertising		1,234,643			(155,827	)		1,078,816
Circulation and subscriber		817,807			(113,961	)		703,846
Other		97,067			(17,476	)		79,591
		4,180,406			(287,264	)		3,893,142
Operating Costs and Expenses
Operating		1,882,984			(165,874	)		1,717,110
Selling, general and administrative		1,581,596			(124,168	)		1,457,428
Depreciation of property, plant and equipment		221,239			(2,177	)		219,062
Amortization of intangible assets		17,571			—			17,571
		3,703,390			(292,219	)		3,411,171
Income from Operations		477,016			4,955			481,971
Equity in earnings of affiliates		5,975			—			5,975
Interest income		11,338			—			11,338
Interest expense		(24,046	)		—			(24,046	)
Other income, net		11,182			—			11,182
Income before Income Taxes		481,465			4,955			486,420
Provision for Income Taxes		192,500			1,986			194,486
Income from Continuing Operations		288,965			2,969			291,934
Income from Continuing Operations Attributable to Noncontrolling Interests		(358	)		—			(358	)
Income from Continuing Operations Attributable to The Washington Post Company		288,607			2,969			291,576
Redeemable Preferred Stock Dividends		(952	)		—			(952	)
Income from Continuing Operations Available for Common Shares	$	287,655		$	2,969		$	290,624
Basic income per common share from continuing operations	$	30.31					$	30.62
Basic average number of common shares outstanding		9,492						9,492
Diluted income per common share from continuing operations	$	30.19					$	30.50
Diluted average number of common shares outstanding		9,528						9,528

Note:

(1) The adjustment reflects the elimination of the results of operations of Newsweek magazine as if the transaction occurred on January 1, 2007. The elimination excludes Newsweek magazine’s historical pension credit since the associated pension assets and liabilities will be retained by the Company.

5