tribune annual_00
TRANSCRIPT
Major Market Media
Tribune Company 2000 Annual Report
Albany
Allentown
Atlanta
Baltimore
Boston
Chicago
Dallas
Denver
Fort Lauderdale
Grand Rapids
Greenwich
Harrisburg
Hartford
Houston
Indianapolis
Los Angeles
Miami
New Orleans
New York
Newport News
Orlando
Philadelphia
Sacramento
San Diego
Seattle
Stamford
Washington
Television
Radio Television ProgrammingTribune Entertainment Company, Los Angeles — develops and distributes first-run television programming for the Tribune station group and national syndication
BaseballChicago National League Ball Club Inc. (Chicago Cubs)
Investments The WB Television Network (25% owned); TV Food Network (29%); The Golf Channel (9%); iBlast Networks (25%)
WPIX (WB11)New York
KTLA (WB5)Los Angeles
WGN (WB9)Chicago
WPHL (WB17)Philadelphia
WLVI (WB56)Boston
KDAF (WB33)Dallas
WBDC (WB50)Washington, D.C.
WATL (WB36)Atlanta
KHWB (WB39)Houston
KCPQ (FOX13)Seattle
KTWB (WB22)Seattle
WBZL (WB39)Miami
KWGN (WB2)Denver
KTXL (FOX40)Sacramento, Calif.
KSWB (WB69)San Diego
WXIN (FOX59)Indianapolis
WTIC (FOX61)Hartford, Conn.
WXMI (FOX17)Grand Rapids, Mich.
WGNO (ABC26)New Orleans
WNOL (WB38)New Orleans
WPMT (FOX43)Harrisburg, Pa.
WEWB (WB45)Albany, N.Y.
WGN-AMChicago
KEZW-AMDenver
KOSI-FMDenver
KKHK-FMDenver
Entertainment Listings and Content SyndicationTribune Media Services—national and international print, online and on-air TV and movie information; comics, columnists and features; online and wire services; print and interactive ad networks
Cable ProgrammingCLTV News, Chicago; Central Florida News 13, Orlando (50% owned)
National AdvertisingTribune Media Net—oversees national advertising sales efforts for all Tribune newspapers and coordinates sales of multimedia ad packages
Classified AdvertisingTribune Classified Services—directs overall classified strategy for Tribune,integrating print, interactive and niche products
Other Spanish-Language NewspapersLa Opinión, Los Angeles (50% owned); ¡Exito!, Chicago (weekly)
Specialty Sitesblackvoices.comgo2orlando.commetromix.comchicagosports.comcalendarlive.comshowtimeinteractive.comhrticket.com
Classified Advertising SitesRecruitment—blackvoices.com, brassring.com,* careerbuilder.com,*
siliconprairie.comAutomotive—cars.com*Real estate—apartments.com,* newhomenetwork.com*General merchandise—recycler.com
*affiliate/equity relationship; supported locally and nationally via sales and marketing
*Spanish language
Newspaper Siteslatimes.comchicagotribune.comnewsday.comsunspot.netsun-sentinel.comorlandosentinel.comctnow.commcall.comdailypress.comstamfordadvocate.comgreenwichtime.com
TV and Radio SitesSee inside back cover for complete listing
Los Angeles TimesLos Angeles
Chicago TribuneChicago
NewsdayLong Island, N.Y.
The Baltimore SunBaltimore
South Florida Sun-SentinelFort Lauderdale, Fla.
Orlando SentinelOrlando, Fla.
The Hartford CourantHartford, Conn.
The Morning CallAllentown, Pa.
Daily PressNewport News, Va.
The AdvocateStamford, Conn.
Greenwich TimeGreenwich, Conn.
Hoy*New York
Daily Newspapers
Tribune at a Glance
InvestmentsBrassRing Inc. (24% owned) CareerBuilder Inc. (46%)Classified Ventures (34%)
Operations
Operations
Operations
Tribune Publishing operates market-leading newspapers dedicated to great journalism. It is the second-largest U.S. news-paper group in revenues and thirdin total circulation. The group alsodistributes entertainment listings and syndicated content, and operates two 24-hour cable news channels. Pu
blis
hing
Inte
ract
ive Tribune Interactive operates leading
news and information Web sites in 18 of the nation’s top 30 markets. The sites attract approximately 5 million unique visitors per month,placing Tribune among the top 20online news and information networksin the country.
Tribune Broadcasting owns and operates 22 major-market televisionstations, including national super-station WGN, and reaches 80 percent of U.S. television house-holds. It is the largest TV group notowned by a network. Broadcastingproperties also include four radio stations, Tribune Entertainment andthe Chicago Cubs baseball team.Br
oadc
astin
g
� Broad distribution—our TV stations reach 38% of U.S. television households over the air, and 80% with the cable and satellite coverage of WGN superstation
� Major markets—we have TV stations in 10 of the nation’s top 12 markets and in 16 of the top 30. Tribune is one of only four TV groups with VHF stations in New York, Los Angeles and Chicago (ABC, CBS and NBC are the others)
� Buying power—our TV group’s size provides purchasing advantages in the syndicated programming marketplace
� Local programming excellence—news, sports and special-event coverage attracts viewers and advertisers, and gives Tribune stations distinct identities in their markets
� WGN superstation—we operate one of America’s most-watched cable channels, reaching more than 51 million households outside of Chicago
� Create a leading distribution network in the consolidating television industry by acquiring stations in the nation’s top 40 markets
� Continue track record of exceeding industry averages for revenue growth and margin expansion
� Expand local news programming to grow audience share and increase revenues
� Achieve operating efficiencies in two-station markets and capitalize on further opportunities for dual ownership
� Exploit cross-media opportunities in top three markets to better serve consumers and advertisers
� Enhance ad revenue stream by expanding cable coverage of WGN superstation
� Build out digital broadcast capacity and focus on maximizing the future revenue potential of our digital TV spectrum
� Support the growing WB Television Network, the major source of prime-time programming for our affiliated stations
� Increase Tribune-branded programming through Tribune Entertainment
� Excellent markets—our newspapers are located in dynamic major markets, including New York, Los Angeles and Chicago
� Strong local franchises—our newspapers are the leading sources of news, information and classified advertising, in print and online, in their local markets
� Award-winning journalism—Tribune newspapers have won a combined 90 PulitzerPrizes, and each is a frequent recipient of national and regional awards for investigativereporting, column and feature writing, sports coverage, photography and other categories
� Electronic media alliances—through broadcast TV, radio, cable and the Internet, our newspapers extend their audience reach and brands, positioning themselves as complete, multimedia information sources
� Be the leading provider of local information in the communities where we do business
� Position Tribune’s newspaper brands as multimedia information franchises by buildingcross-media presence
� Capture the majority of local classified advertising dollars, in print and online
� Increase Tribune’s share of the fast-growing national advertising category
� Leverage Tribune’s mass-media assets to accelerate growth and build cross-media sales
� Build readership and circulation through innovative marketing and product enhancements that respond to customer needs
� Sustain operating excellence, including high-quality production and cost efficiency, with equipment and technology upgrades
� Established brands—our newspaper and broadcast Web sites build on the reputations ofTribune’s well-known media brands, which are trusted sources of local news and information
� Scale and scope—we operate a network of leading news and information sites in 18 of the top 30 markets; this strong national reach and access to major markets is important to advertisers
� Cross-promotion ability—Tribune’s TV and publishing assets enable cost-effective marketing of our dot-com brands to local and national audiences
� Content creation—our Web sites draw on Tribune’s vast media network to provide more depth, including multimedia news and features
� Online experience—Tribune was an early leader in adopting interactive technology. Weknow how to build compelling Web sites that provide value for consumers and advertisers
� Be the leading provider of online news, information and classifieds in our markets, leveraging Tribune’s extensive content resources and brand equity
� Focus growth strategy on newspaper Web sites, which attract the most users and hold the greatest revenue potential
� Build the nation’s No.1 network of major-market Web sites
� Develop multiple revenue streams, including advertising and sponsorships, that lead our Internet activities to long-term profitability
� Create and strengthen content partnerships with providers of emerging wireless and broadband platforms to extend our reach
� Invest in leading-edge Internet technology, ensuring that our Web sites have the features and speed that consumers and advertisers value
Competitive Advantages Strategic Priorities
Competitive Advantages Strategic Priorities
Competitive Advantages Strategic Priorities
Financial Highlights
For the Year (in thousands, except per share data) 2000 1999 change
Operating revenues $ 4,910,363 $2,882,284 + 70%
Operating profit $ 1,033,011 $ 732,842 + 41%
Net income Continuing operations before non-operating items $ 403,519 $ 382,358 + 6%
Continuing operations including non-operating items 310,401 1,449,962 – 79%
Discontinued operations (86,015) 21,807 *
Cumulative effect of accounting change, net – (3,060) – 100%
Total $ 224,386 $1,468,709 – 85%
Diluted Continuing operations before non-operating items $ 1.30 $ 1.41 – 8%earnings Continuing operations including non-operating items .99 5.49 – 82%per share Discontinued operations (.29) .08 *
Cumulative effect of accounting change, net – (.01) – 100%
Total $ .70 $ 5.56 – 87%
Common dividends per share $ .40 $ .36 + 11%
Common stock price per share: high $ 55.69 $ 60.88
low $ 27.88 $ 30.16
close $ 42.25 $ 52.56
At Year End Dec. 31, 2000 Dec. 26, 1999 change
Total assets $14,676,212 $8,740,047 + 68%
Total debt (excluding PHONES) $ 3,448,445 $1,396,039 + 147%
Shareholders’equity $ 5,885,916 $3,458,617 + 70%
Common shares outstanding 299,518 237,792 + 26%
* Not meaningful
Operating Revenues(dollars in billions)
96 97 98 99 00
5.0
4.0
3.0
2.0
1.0
Operating Profit(dollars in millions)
96 97 98 99 00
1250
1000
750
500
250
EBITDA(dollars in millions)
96 97 98 99 00
1500
1250
1000
750
500
250
Tribune Company and Subsidiaries
is a media industry leader with operations in major
markets throughout the United States, including 18 of
the top 30. Through television, radio,newspapers and the Internet, we reachmore than 80 percent of U.S.households.
Our multimedia growth strategy expands the audience
for Tribune content, deepens news coverage and
strengthens our local brands. It also helps us capture incremental
advertising revenues, locally and nationally. In addition, we invest
aggressively in technologies that are important to our future, such
as digital television and innovative online services. Tribune’s
annualized revenues are about $6 billion and we employ more
than 22,000 people.
Tribune Company
and employee owners
To our shareholdersOne key opportunity is to increase our share of national advertising.
Tribune Media Net, our new nationwide sales organization, positions
Tribune as a one-stop solution for advertisers who need to reach a mass
audience quickly and efficiently, particularly in the top three markets.
Sales of cross-media ad programs—featuring any combination
of newspapers, television and the Internet—are gaining momentum.
Our combined television and newspaper reach is a major selling
point: 75 percent of adults in Chicago, 62 percent in Los Angeles
and 42 percent in New York. In addition, Tribune Media Net funnels
national ad dollars to our mid-tier markets like Baltimore, Fort
Lauderdale, Hartford and Orlando, producing incremental newspaper
revenue that was not attainable prior to the merger.
More options for Tribune advertisers are just the beginning. Our
local editorial and newsgathering resources are extraordinary, and
we know how to maximize their value. We’ve proven in Chicago that
cross-promotion and sharing content across media strengthens our
brands and gives our audiences a deeper level of news and information.
It produces operating efficiencies as well. As you’ll see throughout
this report, we’re now extending our unique multimedia growth
strategy to other markets, including New York and Los Angeles.
The integration of Times Mirror has progressed faster than
expected. Merger-related synergies should generate about $130 million
2000 was an extraordinary year for Tribune, highlighted
by our merger with The Times Mirror Company. Valued
at $8.3 billion, it was the largest acquisition in newspaper
industry history. More importantly, it created the only
media company with television, newspaper and Internet
operations in the top three U.S. markets—New York,
Los Angeles and Chicago—and positions Tribune for
accelerated growth.
The benefits of the Times Mirror merger, completed
last June, extend well beyond newspapers. We acquired
the scale that is essential for success in today’s media
environment, and the ability to serve advertisers and
consumers in new ways that add value. That means
more opportunities to grow revenue across Tribune’s
entire network of mass-media businesses.
2
of incremental cash flow in 2001. In fact, a large portion of that amount
has already been realized. Duplicate corporate overhead expenses were
eliminated ahead of schedule, and at the business unit level, we’ve taken
steps to increase operating margins at our newly acquired newspapers.
In particular, our new management team at the Los Angeles Times has
made many positive changes.
After the merger we divested non-core businesses, focusing
Tribune resources exclusively on
broadcasting, publishing and inter-
active. We received excellent value
for our education group and several
companies acquired in the Times
Mirror transaction—about $2 billion
in cash after taxes. This helped off-
set the cost of the merger, and we
applied the funds to reduce debt
and repurchase Tribune stock.
Solid results Financially,
2000 was another strong year for
Tribune. Although reported earnings per share were lower due to dilution
from the Times Mirror merger, cash earnings—defined as income from
continuing operations, excluding non-operating items, plus amortization
expense—rose 12 percent on a per share basis.
In what was a difficult stock market overall, total return on Tribune
common shares was minus 22.5 percent in 2000. We were encouraged,
however, by our stock’s performance following the Times Mirror merger
announcement on March 13. From that day through December 31,
we delivered a positive total return of 14.5 percent while, for the same
period, the S&P 500 Index declined 4.5 percent.
Clearly, our stock price in 2000 did not reflect the progress made
throughout the company. The television group outperformed the
industry, leading Tribune Broadcasting to its ninth consecutive year
of record growth. Once again, combining great markets with excellent
programming proved a winning formula. We continue to benefit from
our affiliation with the popular
WB Network, smart programming
buys in the syndication market
and our stations’ growing local
news franchises.
For Tribune Publishing, margin
expansion is a major focus as we
strive to operate the industry’s
most profitable newspapers.
Installations of new technology
are boosting productivity, and
we’re reducing expenses. For
example, several newspapers have converted to a narrower page size,
cutting newsprint costs significantly. Readers find the new size more
convenient, too. The Chicago Tribune, South Florida Sun-Sentinel and
The Hartford Courant will adopt the new format in 2001.
Our interactive operations continue to grow rapidly, and we expect
the Internet to play a prominent role in Tribune’s future. It complements
and extends our broadcasting and publishing businesses. In 2000, we
tightened our growth strategy to focus on the Tribune newspaper sites,
John W. Madigan Chairman, President and Chief Executive Officer
Dennis J. FitzSimons Executive Vice President
3
which attract the most users and hold the greatest revenue potential.
We also scaled interactive activities to better match online revenue
projections. These steps position Tribune Interactive to be profitable
by the second half of 2002.
Board of Directors We welcomed Enrique Hernandez, Jr. to the
Tribune board earlier this month. Rick is chairman, president and CEO
of Inter-Con Security Systems in Los Angeles and also owns interests in
the television industry. He fills the vacancy created by Donald Rumsfeld,
who last month joined the Bush administra-
tion as Secretary of Defense. Don joined the
Tribune board in 1992 and we wish him
well as he once again serves our nation in a
very important role.
Three of our long-time directors, Diego
Hernandez, Robert La Blanc and Kristie
Miller, will retire from board service in
May. These directors have collectively
served Tribune shareholders for more than
45 years and we appreciate their dedication
and commitment. Thomas Unterman, who
joined our board last June following the Times Mirror merger, will not
be standing for reelection. We thank Tom for his contributions during
the transition and wish him well.
Outlook Even in the face of slower ad trends, Tribune is posi-
tioned for above-average growth. We are only beginning to capture
the full benefits of the merger, including significant economies of
scale. In addition, Tribune Media Net has a national sales team in
place to serve a new class of advertisers and increase our business
with existing ones.
We expect to make more acquisitions, especially in television, where
we are actively searching for opportunities in the nation’s top 40 markets.
As always, the financial measure known as Shareholder Value Added,
or SVA, will help guide our decision-making on acquisitions, capital
expenditures and operating budgets.
We believe high-quality media properties will continue to grow in
value, adding to our confidence in the company’s future. In today’s frag-
mented media environment, advertisers need television and newspapers
more than ever to reach a broad consumer audience—especially in
the major markets, where Tribune is concentrated. We have the right
businesses in the right places.
Tribune’s media brands and financial
strength are a powerful combination. Yet
our greatest asset of all is people. We have
an abundance of motivated, innovative
thinkers at all levels of the organization,
most of whom are Tribune shareholders.
This further distinguishes Tribune and
contributes to our industry leadership.
Even off the job, our employees are excep-
tional, volunteering their time and talent
in the communities where we do business.
This is a time of great optimism at Tribune. Never in our history
have we had so many opportunities to grow, and so many competitive
advantages. The best is yet to come as we build the multimedia
company of the future.
Sincerely,
John W. Madigan
Chairman, President and Chief Executive Officer
February 23, 2001
Develop premier branded content
Build value across multiple media
Apply technology imaginatively
Encourage creativity in a diverse workplace
Use financial resources aggressively to create shareholder value
How we create value
4
The audience for Tribune content swelled in 2000 as we
continued our expansion in the nation’s largest, most lucrative
markets. Our major-market orientation, combined with an
aggressive, multimedia growth strategy, sets Tribune apart
from both local and national competitors.
In four of the five most-populated states, Tribune is the
preeminent local media company. We are the only one with
television, newspaper and Internet operations in New York,
Los Angeles and Chicago, and we are the leading news-
paper publisher in Florida. In these markets and throughout
our national network, Tribune’s broadcasting, publishing and
interactive businesses work together.
Their cooperation — in newsgathering, content creation,
promotion, sales and other areas — strengthens our local
brands, deepens coverage and reduces costs.
Our joint efforts create new revenue streams, too. Tribune
Media Net, established in 2000, is pumping up our share
of the national advertising segment by offering targeted
mass-media options that marketers have never seen before.
Response to our customized, cross-market and cross-media
ad programs has been very positive, and we’ve only begun
to exploit this unique Tribune capability. In 2001, we’ll
create even more value for national advertisers, helping
them succeed in the top three markets and beyond.
Multi Media
Major Markets
New
Albany
Allentown
Atlanta
Baltimore
Boston
Chicago
Dallas
Denver
Fort Lauderdale
Grand Rapids
Greenwich
Harrisburg
Hartford
Houston
Indianapolis
Los Angeles
Miami
New Orleans
New York
Newport News
Orlando
Philadelphia
Sacramento
San Diego
Seattle
Stamford
Washington
From Times Square to the eastern tip of Long Island, Tribune has the greater New York
market covered. WPIX-TV extended its local news franchise in 2000, introducing
the WB11 Morning News. The two-hour newscast has pulled in new viewers and
advertisers alike, and, like the station’s flagship 10 p.m. news, benefits from a growing
relationship with Newsday. � WPIX, Newsday and their corresponding Web sites
combined resources on three statewide polls prior to the November election. More
co-branded, content-sharing opportunities will be pursued in 2001, as will bundled
advertising programs that bring together all Tribune media assets in the region.� Newsday and newsday.com are powerful brands on their own. At 54 percent daily and
63 percent on Sundays, Newsday has the highest market penetration of any major
newspaper in the country. In addition, its primary circulation territory includes
Nassau and Suffolk counties on Long Island — high-income areas that most advertisers
need to reach. � Newsday also publishes Hoy, a fast-growing Spanish-language
daily. Just north of the Big Apple, The Advocate (Stamford) and Greenwich Time
serve Connecticut’s affluent Fairfield County. York7
Albany
Allentown
Atlanta
Baltimore
Boston
Chicago
Dallas
Denver
Fort Lauderdale
Grand Rapids
Greenwich
Harrisburg
Hartford
Houston
Indianapolis
Los Angeles
Miami
New Orleans
New York
Newport News
Orlando
Philadelphia
Sacramento
San Diego
Seattle
Stamford
Washington
Los An
The Los Angeles Times and KTLA-TV pack a dynamic one-two punch in the nation’s
second-largest market. Together, they reach approximately 62 percent of adults in the
region every week. The Times and KTLA teamed up in 2000 to deliver enhanced
coverage of the Democratic National Convention in Los Angeles and
breaking news stories such as the Concorde crash in Paris. Content on
latimes.com and ktla.com also reflect Tribune’s cooperative efforts in
Southern California. � The Times earned its 24th Pulitzer Prize in
2000. New weekly sections, “Tech Times” and “Workplace,” and increasing coverage of
L.A.’s Latino community, show the newspaper’s ability to address reader needs and
grow with the market. “Sneaks,” a popular film-preview section published quarterly,
was expanded to the Chicago Tribune and Newsday, generating incremental revenue
from national advertising. � Partnering with the Times deepens KTLA’s established
role as a local news and information leader. The station airs 24.5 hours of local
news programming per week, including the innovative KTLA Morning News — No. 1
with adult viewers ages 25 to 54 — and the award-winning News @ Ten.
geles
9
Albany
Allentown
Atlanta
Baltimore
Boston
Chicago
Dallas
Denver
Fort Lauderdale
Grand Rapids
Greenwich
Harrisburg
Hartford
Houston
Indianapolis
Los Angeles
Miami
New Orleans
New York
Newport News
Orlando
Philadelphia
Sacramento
San Diego
Seattle
Stamford
Washington
Chic
The multimedia model we’re applying in New York and Los Angeles, as well as
Hartford, was developed in Chicago. It is a proven success on three levels: content
sharing, cross-brand promotion and cross-media ad sales. � Our local businesses draw
from each other — a daily process that enriches the news and information appearing
on-air, in print and online. WGN-TV, WGN Radio and CLTV, for example, often use
Chicago Tribune reporters and columnists to augment their own take on a story.
Viewers get more insight; the newspaper gets more exposure. All of our
Chicago outlets promote one another, helping grow Tribune’s regional
audience. � For advertisers, more channels mean more potential exposure.
Our media in Chicago deliver 75 percent of adults every week. We offer
convenience, too — a single point of contact for multimedia packages tailored to
advertisers’ specific needs. � Even in our home market we see plenty of room to grow,
and we’re investing in our local products aggressively. For example, a major expansion
under way at Freedom Center, the Chicago Tribune’s printing facility, will increase
zoning and inserting capacity. Readers will see more community-specific news and
information, and advertisers will have more options for targeting their messages. At
WGN-TV, a new state-of-the-art digital newsroom allows producers to review video
edited for broadcast on their desktop computers. The technology gives the editors
many more options in the use of special effects and provides a framework for greater
content sharing with CLTV.
ago
11
Flo
Albany
Allentown
Atlanta
Baltimore
Boston
Chicago
Dallas
Denver
Fort Lauderdale
Grand Rapids
Greenwich
Harrisburg
Hartford
Houston
Indianapolis
Los Angeles
Miami
New Orleans
New York
Newport News
Orlando
Philadelphia
Sacramento
San Diego
Seattle
Stamford
Washington
The vibrant Florida market is a great place to sell newspapers, and we should know.
The Orlando Sentinel and South Florida Sun-Sentinel are news and information leaders in
the third fastest-growing state, and each employs aggressive multimedia growth strategies.� In 2000, the Orlando Sentinel captured a Pulitzer Prize, increased circulation and
launched a cover-to-cover redesign. Central Florida News 13, our partnership with
Time Warner, extends the Sentinel brand and offers the region’s only 24-hour local news
on television. In print, online and on the air, Orlando Sentinel Communications reaches
88 percent of Central Florida adults. � Likewise, the Sun-Sentinel connects with more
adults than any major daily newspaper in the Broward/South Palm Beach market —
three times more than The Miami Herald. It’s also a hands-on content partner with several
South Florida television and radio stations. � Our Florida newspapers, Web sites, WBZL-TV
(Miami) and News 13 played a pivotal reporting role, nationally and locally, in the
presidential election. Editorial staff shared their local knowledge with the full range of
Tribune media outlets as the ballot controversy unfolded, deepening our
companywide coverage in every medium. Sun-Sentinel editors and reporters
also provided insights for CNN, C-SPAN, the BBC, MSNBC, National Public
Radio and CBS Radio.rida13
Tribune is the country’s fourth-largest broadcaster, operating the largest television group not owned by a network. With stations in 10 of the top 12 markets, and 16 of the top 30, we reach 80 percent of U.S. television households, including the cable and satellite coverage of superstation WGN.
Effective programming strategies combined with our major-market
presence continue to produce strong financial results. Tribune
Broadcasting — including the television group, four radio stations,
Tribune Entertainment and the Chicago Cubs — achieved record operating
profit and operating revenues in 2000, up 19 percent and 13 percent,
respectively. Television operating cash flow margins improved a full point
in 2000, to 42 percent, and have more than doubled over the past 10 years.
We are a leading consolidator in the television industry, focusing
on acquisition opportunities in the nation’s top 40 markets. Expanding
our national footprint gives us greater scale to stay competitive and
increase cash flow. Besides entering new markets, we look to grow in
our existing markets by acquiring second stations as we have done in
Seattle and New Orleans.
In addition to scale, building viewership is fundamental to our television
success. Tribune’s main source of prime-time programming is The WB
Television Network, in which we hold a 25 percent equity stake. Fifteen of
our 22 stations are WB affiliates and together they comprise the major-
market backbone of the network. We also operate six strong Fox affiliates.
TV stations in10 of the top
Broa
dcas
ting
14
The WB’s popularity with teen and young-adult viewers was never
more apparent than in 2000. In the critical November “sweeps” period,
The WB scored the highest year-to-year ratings increase of any television
network in the demographic segments most coveted by advertisers.
Overall ratings jumped 28 percent among adults ages 18-34, and 19
percent for adults 18-49. 7th Heaven, The WB’s signature series, had its
best-ever sweeps average with gains of more than 40 percent in both the
18-34 and 18-49 adult groups. Angel, Dawson’s Creek and Felicity also
achieved impressive audience growth. Gilmore Girls, a new series,
performed even better than expected.
Programming during the “fringe” periods that surround prime time
also plays a key role in our success. The size of our station group gives
us a buying advantage in the syndication market and investments in
off-network comedy series have produced excellent returns. Friends,
for example, continues to yield solid ratings and revenue growth for
our stations, attracting viewers whom advertisers will pay a premium
to reach. We believe Everybody Loves Raymond — one of the top-rated
shows on CBS and launching on most Tribune stations this fall —
will generate similar benefits. The Tribune group will add another
proven winner, Will & Grace, in 2002.
Gene Roddenberry’s Andromeda, introduced by Tribune Entertainment
last fall, looks like a winner, too. It is the No. 1-rated action drama
in first-run syndication and demonstrates the value of Tribune
Entertainment on multiple levels. With Andromeda, Tribune television
stations received a highly rated, first-run show at no cash cost. Tribune
Entertainment, in turn, benefited from having one of the nation’s
strongest station groups as a launch platform. A further plus is the extra
revenue potential for programs that reach four seasons of production
via the sale of re-run rights. In 2000, Tribune Entertainment sold
rights for 88 episodes of Gene Roddenberry’s Earth: Final Conflict to
cable’s Sci-Fi Channel.
In February 2001, Tribune Entertainment announced the formation of
Tribune Studios. The project includes a complete renovation of the historic
10-acre KTLA-TV studio lot and answers the exploding demand for digital
production facilities from the Hollywood creative community.
Tribune television stations enjoy close ties with their communities.
Local news and sports programming strengthens those ties and distin-
guishes our channels from a sea of basic cable networks. Tribune stations
broadcast more than 200 hours of local news every week. The programming
appeals to viewers and advertisers alike, supporting our goal to increase
local market shares.
We’ve been especially aggressive in the morning news category. In
2000, morning shows debuted in New York, Boston, Seattle and Denver.
Like our popular morning newscasts in Los Angeles and Chicago, the
new shows feature an entertaining blend of news, information and
personalities. The overriding goal is to give viewers something they
can’t get anywhere else, and our morning shows frequently outperform
the national broadcasts by traditional networks.
We continue to expand our digital broadcast capacity in anticipation
of growing consumer demand for high-definition television. Eight of our
stations now deliver a digital signal. In addition, Tribune Broadcasting
is a leading investor in iBlast Networks, a new company that uses the
digital-television spectrum to distribute broadband content and services
to consumers. iBlast has aggregated part of the spectrum from local
television stations in 246 markets covering 93 percent of the United
States. The service represents a potential new revenue stream for
Tribune television stations.
12 U.S.markets
NATIONAL REACH Tribune’s 22 stations reach 38 percent of U.S. television households.* Under FCC rules, which discount coverage for UHF stations, we’re well under the regulatory cap of 35 percent and have plenty of room to grow.
Market YearStation Market Size Affiliation Acquired
WPIX New York 1 WB11 1948**KTLA Los Angeles 2 WB5 1985WGN Chicago 3 WB9 1948**WPHL Philadelphia 4 WB17 1992WLVI Boston 6 WB56 1994KDAF Dallas 7 WB33 1997WBDC Washington, D.C. 8 WB50 1999WATL Atlanta 10 WB36 2000KHWB Houston 11 WB39 1996KCPQ Seattle 12 FOX13 1999KTWB Seattle 12 WB22 1998WBZL Miami 16 WB39 1997KWGN Denver 18 WB2 1966KTXL Sacramento, Calif. 19 FOX40 1997KSWB San Diego 25 WB69 1996WXIN Indianapolis 26 FOX59 1997WTIC Hartford, Conn. 27 FOX61 1997WXMI Grand Rapids, Mich. 38 FOX17 1998WGNO New Orleans 42 ABC26 1983WNOL New Orleans 42 WB38 2000WPMT Harrisburg, Pa. 46 FOX43 1997WEWB Albany, N.Y. 56 WB45 1999
*Nielsen Media Research, 2000 HH estimates **Founded by Tribune
15
In 2000, Tribune strengthened its position as one ofAmerica’s premier newspaper publishers. The mergerwith Times Mirror tripled our circulation and marketingreach and doubled publishing revenues to more than $4 billion annually. Tribune is now the nation’s second-largest newspaper publisher measured by revenue and operating cash flow, and third in total circulation.
11 market-leading newspapers
Publ
ishi
ng
The addition of the Los Angeles Times, Newsday (New York), The Baltimore
Sun, The Hartford Courant and other former Times Mirror newspapers
significantly enhances Tribune’s network of major-market media assets.
The Times, Chicago Tribune and Newsday are each among the nation’s
10 largest metropolitan daily newspapers, giving us the scale and scope
to attract national advertising. In fact, our Los Angeles, Chicago and
New York papers have a combined daily circulation of 2.2 million —
a reach unmatched by The Wall Street Journal, USA Today or The New
York Times. For national advertisers, our circulation on a market-by-
market basis is even more compelling.
In 2000, we established Tribune Media Net to execute an aggressive
growth strategy in the national advertising segment. The group’s goal is
to boost national ad revenue for all Tribune newspapers and leverage
Tribune’s unique multimedia position in the nation’s top three markets.
Our message to national ad buyers is simple: Tribune can help you target
16
a broad audience in the most critical markets, quickly and cost-effectively.
We can do it with newspapers alone, or with a combination of newspapers,
television and the Internet.
Tribune Media Net generates revenue that is mostly incremental —
sales that were not possible prior to the merger. Special sections that
share content and run in multiple markets are a key revenue driver. The
sections offer national advertisers a common editorial platform and high
readership — a great combination for those targeting a specialized audience.
Tribune published three cross-market special sections in 2000: two
explored technology themes and one previewed the holiday movie scene.
Capturing the majority of classified advertising revenues in our local
markets remains a top priority. With the Internet playing a greater role
in the classified marketplace, our print and online strategies must be
integrated, and our product development efforts accelerated. In 2000,
we created Tribune Classified Services to carry out both objectives.
The new organization ensures that sales and marketing resources are
maximized as we grow this vital part of our business. Classified adver-
tising — primarily in the jobs, cars and real estate areas — accounts for
about 30 percent of Tribune Publishing’s revenue.
More and more advertisers are realizing the benefits of our “full-service”
classified model, where integrated solutions are offered using a combination
of the newspaper, the Web and niche publications. Initiatives in the
Chicago market illustrate this approach. In early 2001, the Chicago Tribune
upgraded its classified sections, adding more information for readers and
making the pages easier to use. A new section, “Working,” offers tips for
job searchers and points to the CareerBuilder area on chicagotribune.com.
Likewise, the newspaper’s twice weekly “Cars” section shares content
with the cars.com area online. Specialty publications like Auto Finder,
Job Finder and New Homes Guide round out our Chicago classified line,
making the Tribune a true one-stop shop for local advertisers.
Market-leading classifieds are only part of what readers find in
Tribune newspapers. They also get award-winning journalism packaged
with the most in-depth news and information available. Engaging content
is our daily mission, and we’re constantly changing to better inform
and entertain readers. Our bureau in Havana, Cuba, opened in January
2001, exemplifies how we strive to deepen news coverage and address
important reader interests. The bureau will enhance content in all
Tribune newspapers and benefit Tribune’s broadcast units as well.
The Times Mirror merger added two Spanish-language newspapers
to our publishing mix: La Opinión in Los Angeles and Hoy in New York.
La Opinión, 50-percent-owned by Tribune, is the nation’s largest Spanish-
language daily, reaching 600,000 readers every day. Hoy was launched by
Newsday in 1998 and already has a paid distribution of 54,000. Together
with ¡Exito!, the Chicago Tribune’s free weekly, Tribune Publishing reaches
Hispanic readers in the nation’s top three markets. We are exploring
opportunities for national advertising sales and content sharing between
all three publications in this high-growth market.
and 90 Pulitzers
LEADING BRANDS Tribune’s daily newspapers are known for award-winning journalism, multimedia reporting and technological innovation. They are read by more than 9 million people on weekdays and 12 million on Sundays.
Circulation*Newspaper Daily Sunday Primary Market(s)
Los Angeles Times 1,033,399 1,379,564 Southern California
Chicago Tribune 620,600** 1,007,236 Greater Chicagoland
Newsday 576,345 674,662 Long Island/Queens, N.Y.
The Baltimore Sun 315,306 471,387 Central Maryland
Orlando Sentinel 252,057 373,901 Central Florida
South Florida Sun-Sentinel 238,096 351,189 South Florida
The Hartford Courant 202,509 296,713 Greater Hartford/Connecticut
The Morning Call 127,175 170,744 Allentown, Pa./Lehigh Valley
Daily Press 93,174 114,376 Virginia Peninsula
The Advocate 28,499 35,654 Stamford, Conn./Fairfield County
Greenwich Time 12,384 13,810 Greenwich, Conn./Fairfield County
*ABC report for six-months ended 9/24/00 ** Wed.-Fri. average for the period was 661,699.
17
Tribune Interactive operates leading news and informationWeb sites in Tribune’s 23 local media markets, along with other branded sites targeting specific communities ofinterest. In 2000, we accelerated Tribune’s growth online,advancing our goal to develop profitable businesses in the new medium.In
tera
ctiv
e
The Times Mirror merger gave a boost to our online efforts, elevating
Tribune to the top tier of local news, information and classified advertising
providers on the Web. Our sites attract approximately 5 million unique
visitors per month, placing us among the top 20 online news and infor-
mation networks in the country.
The content and promotion resources of Tribune newspapers and
television stations give Tribune Interactive a unique ability to deliver large
online audiences in the nation’s top three markets. Likewise, Tribune’s
strong local brands throughout the country and long-term relationships
with consumers and advertisers provide a distinct competitive advantage
as we build our interactive businesses.
Like most other Internet companies, Tribune Interactive experienced
growing pains in 2000. We responded aggressively, taking steps to scale
our online operations to revenue projections. Cost reductions will save
more than $15 million annually, which includes operating efficiencies
from a common online publishing platform being introduced in 2001.
The technology facilitates content sharing and national advertising sales
while allowing each of our sites to retain a unique design.
Content-rich Web
18
Tribune Interactive pro forma revenues were $48 million in 2000,
up 41 percent from 1999. (Pro forma assumes the Times Mirror merger
occurred at the beginning of 1999.) Strong revenue growth is projected for
2001, and the group is targeting profitability by the second half of 2002.
We are keenly focused on applying our interactive resources to areas
that offer the greatest potential for hard dollar returns. In particular, that
means exploiting opportunities to speed revenue growth at our flagship
newspaper Web sites. Our sites feature breaking news throughout the
day and in-depth information not available elsewhere. In most of our
newspaper markets we also operate the leading online marketplaces for
jobs, cars and homes.
Classified advertising is our highest priority, accounting for nearly
70 percent of online revenues. We established Tribune Classified Services
in 2000 to further integrate our print and interactive classified operations
and to capture ad revenues moving from print to the Internet. In
addition, we reconfigured our newspaper Web sites to better showcase
classified content.
We continue to utilize strategic partnerships with other newspaper
publishers to build nationally-branded sites like cars.com — sites that
complement our own local sales efforts. In 2000, we greatly improved
our position in the jobs category by partnering with Knight Ridder to
acquire CareerBuilder, a national leader in online recruiting. Tribune
newspaper sites now offer the full range of CareerBuilder services.
Targeting new audience segments with sites that “build community”
helps increase Tribune’s reach, locally and nationally, and helps develop new
revenue streams. In 2000, for example, we launched ChicagoSports.com,
a site that taps Tribune’s Chicago-based print, broadcast and interactive
resources to give local fans the richest possible online experience. Our
most successful online community is BlackVoices.com, which recently
entered a major strategic marketing alliance with General Motors.
The wide-ranging agreement demonstrates our belief in the power of
the Internet as a medium for creative marketing solutions that go well
beyond standard banner-type advertisements.
We also believe increasing bandwidth will play an important role in our
interactive growth. High-speed broadband technology promises to make
the Internet more compelling for consumers and advertisers alike, and
Tribune’s vast multimedia capabilities position us well for the changing
online environment. In fact, we are already partnering with AT&T’s cable
modem service in several of our most important markets, providing
customized multimedia content for distribution via PCs, digital cable
TV set-top boxes and wireless handheld devices.
POPULAR SITES IN MAJOR MARKETS Tribune Interactive operates a nationalnetwork of Web sites featuring in-depth news and information. The group’s high-trafficnewspaper sites are the foundation for current and future online success.
sites serving 23 U.S.markets
Newspaper Sites Affiliation
latimes.com Los Angeles Timeschicagotribune.com Chicago Tribunenewsday.com Newsday, Long Island, N.Y.sunspot.net The Baltimore Sunsun-sentinel.com South Florida Sun-Sentinelorlandosentinel.com Orlando Sentinelctnow.com The Hartford Courantmcall.com The Morning Call, Allentown, Pa.dailypress.com Daily Press, Newport News, Va.stamfordadvocate.com The Advocate, Stamford, Conn.greenwichtime.com Greenwich Time, Greenwich, Conn.
Entertainment and Specialty Sites (partial list) Description
blackvoices.com Leading online destination for African-Americansrecycler.com General classifieds site serving Southern Californiachicagosports.com Multimedia site for local fans, launched in 2000metromix.com Chicago’s No.1 online entertainment guidego2orlando.com Travel guide for Central Floridawb11.com Internet home of WPIX-TV, New Yorkktla.com Internet home of KTLA-TV, Los Angeleswgntv.com Internet home of WGN-TV, Chicago
19
The idea for Tribune Ventures originated in 1991 when Tribune acquired
a 10 percent stake in America Online. Our objective was to explore the
online services business in its formative stage. Over the years, partnering
with creative young companies like AOL (now AOL Time Warner) has
proven helpful in growing our own businesses. We gain an inside track
on new technologies, industries and business models.
Tribune Ventures is an active investor. We maximize the strategic
benefits of our investments by forming operating relationships with
our portfolio companies. For example, in 2000, Ventures invested in
The Feedroom, a broadband news network, and agreed to license
the news video from Tribune’s television stations to their network.
The Feedroom, in turn, will develop customized, broadband-driven
Web sites for our stations that enhance their current online efforts.
The major areas of Tribune Ventures’ investment activity are:
� Internet-based media and electronic commerce
� digital and interactive television
� broadband infrastructure and services
� online marketing services
� wireless applications and services
The acquisition of The Times Mirror Company in 2000 heightened
Tribune’s national identity and strengthened our strategic leverage in
making venture investments. The merger also added new companies to
the Tribune Ventures portfolio, and extended our investment network on
the West Coast through a stake in Rustic Canyon, a venture capital fund.
Tribune Ventures further expanded in 2000 by opening a New York
office and broadening its focus in Chicago to include seed-stage investing.
The Manhattan office facilitates our work with existing portfolio companies
on the East Coast, and enables us to focus more closely on new investment
opportunities in the region. Recent East Coast investments include
MarketResearch.com and Upoc. In Chicago, our seed-stage initiative aims
to identify and help develop young businesses that can benefit from our
team’s experience, time and attention. This has so far led to investments
in Performics, Legacy.com, iExplore and Eppraisals.com.
Tribune also has important strategic investments that are managed
outside of Tribune Ventures. In 2000, the company acquired a 46 percent
stake in CareerBuilder Inc. — a leading provider of online recruitment
services for employers and job seekers — in partnership with
KnightRidder.com. Tribune also is an equity partner in BrassRing Inc.,
another recruitment services start-up, and Classified Ventures, a network
of classified advertising Web sites that includes cars.com.
Tribune Broadcasting holds a 25 percent stake in The WB Television
Network and, in the cable arena, owns 29 percent of TV Food Network and
9 percent of The Golf Channel. We are also a lead investor in iBlast Networks,
an early innovator in “datacasting” via the digital television spectrum.
Tribune invests strategically in areas that are important to our businesses. As the pace of change quickens in the media industry, we aim to participate in emerging technologies and business models that could shapeTribune’s growth. Our primary investment vehicle is TribuneVentures, which partners with new-media companies thathave solid business plans and high growth potential.
BUILDING PARTNERSHIPS Tribune Ventures invests in companies that have a strategic connection with one or more Tribune business areas. Listed below are Ventures’ investments made in 2000 or early 2001.
Trib
une
Vent
ures
and
othe
rinv
estm
ents
Company Description
DailyShopper retail promotion network
Dotcast datacasting over analog spectrum
Eppraisals.com online valuation for art, collectibles
Legacy.com online memorials and related services
MarketResearch.com online market research sales
NextDoor Networks online services marketplace
Performics online performance marketing services
RespondTV interactive television enabler
The FeedRoom broadband, interactive news network
TrueAdvantage sales-lead services
Upoc wireless instant messaging service
20
Most of our business units participate in the communities program of
the Robert R. McCormick Tribune Foundation. In-kind contributions
from Tribune units help raise funds from the public, which are matched
by the Foundation. This enables our businesses to increase their impact
in the community. In 2000, charitable funds sponsored by Tribune
businesses and supported by the Foundation awarded grants totaling
$41 million. Dollars are directed to agencies dedicated to helping
children, improving health care or alleviating homelessness and hunger.
Tribune’s merger with Times Mirror expands our opportunities
for community development. We’ll be an even greater contributor
in Southern California, where we operate KTLA-TV, Los Angeles;
KSWB-TV, San Diego; and the Los Angeles Times. Likewise, our
newspaper/television combinations in New York and Hartford
will help raise our support level in those communities.
Throughout Tribune, the depth of our community service activities
and the range of causes we support are best shown by example:
� “Reading by 9” is an ongoing literacy program for kindergarten
through third-grade classes administered by The Baltimore Sun and the
Los Angeles Times. Complemented by news coverage on early childhood
reading issues and daily features, the program includes public and
private partnerships, as well as volunteer and community outreach.
� Tribune television stations, working with BlackVoices.com, launched
an innovative Black History Month initiative in 2001. The companywide
multimedia project honored African-Americans who are making history
today through outstanding contributions to their local communities.
� More than 300 Chicago-area Tribune employees, working with the
Chicago Park District and local residents, spent a full day last August
building a playground for the children of Englewood, an impoverished
South Side neighborhood.
� The Orlando Sentinel, partnering with the YMCA, established a
mentoring program in 2000 to foster development of Hispanic leaders
in the community. The program, with youth and adult components,
is modeled after Black Achievers, another Sentinel initiative.
� Newsday’s FutureCorps, founded in 1999, is the largest student public
service project ever undertaken on Long Island and in Queens, N.Y. The
program introduces students to volunteerism and demonstrates how
they can bring about positive change.
Trib
une
in th
e C
omm
unity
Tribune gives back to the communities we serve. Our busi-nesses support a wide range of nonprofit organizations thathelp people in need, and Tribune employees generouslydonate their time, talent and money in these efforts.
21
22
Management’s Responsibility for Financial Statements
Financial Statements Management is responsible for the preparation, integrity and fair presentation of theCompany’s consolidated financial statements and related financial information included in the Annual Report onForm 10-K to shareholders. The consolidated financial statements have been prepared in accordance with accountingprinciples generally accepted in the United States and necessarily include certain amounts that are based on management’s best estimates and judgments.
The consolidated financial statements were audited by PricewaterhouseCoopers LLP, independent accountants.PricewaterhouseCoopers LLP was given unrestricted access to all financial records and related data, includingminutes of all meetings of shareholders, the Board of Directors and committees of the Board. The Company believesthat all representations made to the independent accountants during their audits were valid and appropriate.
Internal Control System Management is also responsible for establishing and maintaining a system of internalcontrol, designed to provide reasonable assurance to the Company’s management and Board of Directors regardingthe preparation of reliable published financial statements. The system of internal controls is continually reviewedfor its effectiveness and is augmented by written policies and procedures, the careful selection and training of qualifiedpersonnel and a program of internal audit. Each year, the Company’s independent accountants conduct a review ofinternal accounting controls to the extent required by generally accepted auditing standards and perform such testsand related procedures as they deem necessary to arrive at an opinion on the fairness of the financial statements.
The Audit Committee of the Board of Directors is responsible for reviewing and monitoring the Company’sfinancial reporting and accounting practices. The Audit Committee consists of six independent directors. TheCommittee meets with representatives of management, the independent accountants and internal auditors to discuss financial reporting, accounting and internal control matters. PricewaterhouseCoopers LLP and theinternal auditors have direct access to the Audit Committee.
John W. Madigan Donald C. GreneskoChairman, President and Chief Executive Officer Senior Vice President/Finance and Administration
Tribune Company and Subsidiaries
To the Board of Directors and Shareholders of Tribune Company We have audited, in accordancewith auditing standards generally accepted in the United States of America, the consolidated balance sheets ofTribune Company as of December 31, 2000 and December 26, 1999 and the related consolidated statements ofincome, of cash flows and of shareholders’ equity for each of the three years in the period ended December 31, 2000(not presented herein); and in our report dated January 26, 2001, we expressed an unqualified opinion on thoseconsolidated financial statements.
In our opinion, the information set forth in the accompanying condensed consolidated financial statements is fairlystated, in all material respects, in relation to the consolidated financial statements from which it has been derived.
Chicago, IllinoisJanuary 26, 2001
Report of Independent Accountants
23
Five Year Financial Summary
(in thousands of dollars, except per share data) 2000 1999 1998 1997 1996
Operating RevenuesPublishing $ 3,403,028 $1,559,192 $1,481,324 $1,423,947 $1,334,032Broadcasting and Entertainment 1,465,553 1,302,058 1,153,006 1,057,529 876,750Interactive 41,782 21,034 17,249 12,771 2,607
Total operating revenues $ 4,910,363 $2,882,284 $2,651,579 $2,494,247 $2,213,389
Operating ProfitPublishing $ 700,932 $ 426,515 $ 398,846 $ 371,135 $ 304,844Broadcasting and Entertainment 449,057 378,036 317,355 285,896 203,531Interactive (52,606) (32,203) (21,709) (16,550) (13,587)Corporate expenses (64,372) (39,506) (35,435) (34,426) (30,935)
Total operating profit 1,033,011 732,842 659,057 606,055 463,853
Net loss on equity investments (79,374) (40,083) (33,980) (34,696) (13,281)Net interest expense (207,584) (65,595) (82,339) (60,159) (15,663)Non-operating items and minority interest expense (165,301) 1,756,779 119,119 111,824 –
Income from Continuing Operations Before Income Taxes 580,752 2,383,943 661,857 623,024 434,909Income taxes (270,351) (933,981) (272,660) (250,265) (175,071)
Income from Continuing OperationsBefore Accounting Change 310,401 1,449,962 389,197 372,759 259,838
Discontinued Operations of Education Segment, net of tax (86,015) 21,807 25,075 20,866 22,912Discontinued Operations of QUNO, net of tax – – – – 89,317Cumulative effect of change in accounting principle (1) – (3,060) – – –
Net Income (2) $ 224,386 $1,468,709 $ 414,272 $ 393,625 $ 372,067
Share InformationBasic EPS
Continuing operationsBefore non-operating items $ 1.40 $ 1.53 $ 1.27 $ 1.16 $ .96Total 1.06 6.03 1.53 1.44 .98
Discontinued operations (.32) .09 .10 .09 .46Cumulative effect of accounting change – (.01) – – –
Net income $ .74 $ 6.11 $ 1.63 $ 1.53 $ 1.44
Diluted EPSContinuing operations
Before non-operating items $ 1.30 $ 1.41 $ 1.17 $ 1.07 $ .89Total .99 5.49 1.41 1.33 .91
Discontinued operations (.29) .08 .09 .07 .41Cumulative effect of accounting change – (.01) – – –
Net income $ .70 $ 5.56 $ 1.50 $ 1.40 $ 1.32
Common dividends per share $ .40 $ .36 $ .34 $ .32 $ .30Weighted average common shares outstanding (000’s) 271,951 237,367 242,428 245,758 245,684
Financial RatiosOperating profit margin 21.0% 25.4% 24.9% 24.3% 21.0%Debt to capital (3) 34% 37% 35% 41% 37%
Financial Position and Other DataTotal assets $14,676,212 $8,740,047 $5,824,037 $4,665,821 $3,629,151Long-term debt (4) 4,007,041 2,694,073 1,615,955 1,520,646 979,754Shareholders’ equity 5,885,916 3,458,617 2,356,617 1,826,004 1,539,506Capital expenditures $ 302,471 $ 125,578 $ 128,800 $ 98,319 $ 87,171
This summary should be read in conjunction with the consolidated financial statements and notes thereto included in the Company’s 2000 Annual Report on Form 10-K.(1) The cumulative effect of adopting a new accounting pronouncement for derivative instruments decreased net income by $3.1 million in 1999. (2) Includes non-operating items as follows: loss on change in fair values of derivatives and related investments of $62.6 million and loss on sales of subsidiaries and investments, net of write-downs of
$30.5 million, totaling $93.1 million in 2000; gain on change in fair values of derivatives and related investments of $131.2 million, gain on reclassification of investments of $666.2 million, and gain on sales of subsidiary and investments of $270.1 million, totaling $1.1 billion in 1999; gain on sales of subsidiary and investments, net of write-downs, totaling $63.5 million in 1998; gain on sales ofinvestments, net of write-downs, totaling $68.9 million in 1997; and equity income related to Qwest Broadcasting of $6.0 million in 1996.
(3) Capital comprises total debt, deferred taxes and shareholders’ equity.(4) Long-term debt includes the PHONES in 2000 and 1999.
Tribune Company and Subsidiaries
24
Business SegmentsTribune Company and Subsidiaries
(in thousands of dollars) 2000 1999 1998
Operating Publishing $ 3,403,028 $1,559,192 $1,481,324Revenues Broadcasting and Entertainment 1,465,553 1,302,058 1,153,006
Interactive 41,782 21,034 17,249
Total operating revenues $ 4,910,363 $2,882,284 $2,651,579
Operating Publishing $ 700,932 $ 426,515 $ 398,846Profit Broadcasting and Entertainment 449,057 378,036 317,355
Interactive (52,606) (32,203) (21,709)
Corporate expenses (64,372) (39,506) (35,435)
Total operating profit $ 1,033,011 $ 732,842 $ 659,057
Depreciation Publishing $ 138,702 $ 77,768 $ 71,927
Broadcasting and Entertainment 42,850 38,864 33,362
Interactive 4,091 3,378 2,592
Corporate 5,822 2,711 2,761
Total depreciation $ 191,465 $ 122,721 $ 110,642
Amortization Publishing $ 102,187 $ 8,612 $ 5,175of Intangible Broadcasting and Entertainment 72,579 63,209 54,357Assets Interactive 4,396 93 –
Total amortization of intangible assets $ 179,162 $ 71,914 $ 59,532
Capital Publishing $ 211,536 $ 61,710 $ 63,387Expenditures Broadcasting and Entertainment 43,569 41,730 44,055
Interactive 11,868 4,966 2,190
Corporate 35,498 17,172 19,168
Total capital expenditures $ 302,471 $ 125,578 $ 128,800
Assets Publishing $ 8,653,011 $ 899,295 $ 720,077
Broadcasting and Entertainment 3,870,720 3,724,621 3,148,814
Interactive 312,446 108,096 80,776
Corporate 1,840,035 3,317,094 1,191,241
Net assets of discontinued operations – 690,941 683,129
Total assets $14,676,212 $8,740,047 $5,824,037
25
Consolidated Statements of IncomeTribune Company and Subsidiaries
(in thousands of dollars, except per share data) year ended Dec. 31, 2000 Dec. 26, 1999 Dec. 27, 1998
Operating Publishing Revenues Advertising $2,689,304 $1,184,779 $1,150,073
Circulation 531,267 241,258 243,842
Other 182,457 133,155 87,409
Total 3,403,028 1,559,192 1,481,324
Broadcasting and Entertainment 1,465,553 1,302,058 1,153,006
Interactive 41,782 21,034 17,249
Total operating revenues 4,910,363 2,882,284 2,651,579
Operating Cost of sales (exclusive of items shown below) 2,127,352 1,328,893 1,265,787Expenses Selling, general and administrative 1,379,373 625,914 556,561
Depreciation 191,465 122,721 110,642
Amortization of intangible assets 179,162 71,914 59,532
Total operating expenses 3,877,352 2,149,442 1,992,522
Operating Profit 1,033,011 732,842 659,057
Net loss on equity investments (79,374) (40,083) (33,980)
Interest income 33,124 47,436 6,112
Interest expense (240,708) (113,031) (88,451)
Gain (loss) on change in fair values of derivatives & related investments (100,965) 215,876 –
Gain (loss) on sales of subsidiaries & investments, net of write-downs (48,001) 444,927 119,119
Gain on reclassification of investments – 1,095,976 –
Income From Continuing Operations Before Income Taxes, Minority Interest and Cumulative Effect of Change in Accounting Principle 597,087 2,383,943 661,857
Income taxes (270,351) (933,981) (272,660)
Minority interest expense, net of tax (16,335) – –
Income From Continuing Operations Before Cumulative Effect of Change in Accounting Principle 310,401 1,449,962 389,197
Income (loss) from discontinued operations, net of tax (86,015) 21,807 25,075
Income Before Cumulative Effect of Change in Accounting Principle 224,386 1,471,769 414,272
Cumulative effect of change in accounting principle, net of tax – (3,060) –
Net Income 224,386 1,468,709 414,272
Preferred dividends, net of tax (22,984) (18,639) (18,782)
Net Income Attributable to Common Shares $ 201,402 $1,450,070 $ 395,490
Earnings Basic: Continuing operations before cumulative effect ofPer Share change in accounting principle $ 1.06 $ 6.03 $ 1.53
Discontinued operations (.32) .09 .10
Cumulative effect of accounting change, net – (.01) –
Net income $ .74 $ 6.11 $ 1.63
Diluted: Continuing operations before cumulative effect ofchange in accounting principle $ .99 $ 5.49 $ 1.41
Discontinued operations (.29) .08 .09
Cumulative effect of accounting change, net – (.01) –
Net income $ .70 $ 5.56 $ 1.50
See notes to consolidated financial statements included in the Company’s 2000 Annual Report on Form 10-K.
26
Consolidated Balance Sheets
Assets (in thousands) Dec. 31, 2000 Dec. 26, 1999
Current Cash and cash equivalents $ 115,788 $ 631,018Assets Short-term investments 79,709 435,770
Accounts receivable (less allowances of $60,348 and $37,744) 813,739 524,443
Inventories 51,332 23,530
Broadcast rights 268,176 253,129
Deferred income taxes 120,116 73,365
Prepaid expenses and other 42,306 16,275
Total current assets 1,491,166 1,957,530
Properties Machinery, equipment and furniture 1,895,155 1,183,791
Buildings and leasehold improvements 750,491 383,661
2,645,646 1,567,452
Accumulated depreciation (1,180,906) (1,055,300)
1,464,740 512,152
Land 117,109 97,341
Construction in progress 161,998 69,879
Net properties 1,743,847 679,372
Other Broadcast rights 278,630 192,070Assets Net assets of discontinued operations – 690,941
Intangible assets (less accumulated amortization of $566,414 and $386,283) 8,496,782 2,616,688
AOL Time Warner stock related to PHONES debt 556,800 1,304,000
Other investments 1,084,439 1,154,969
Prepaid pension costs 803,100 48,108
Other 221,448 96,369
Total other assets 11,441,199 6,103,145
Total assets $14,676,212 $8,740,047
See notes to consolidated financial statements included in the Company’s 2000 Annual Report on Form 10-K.
27
Tribune Company and Subsidiaries
Liabilities & Shareholders’ Equity (in thousands of dollars, except share data) Dec. 31, 2000 Dec. 26, 1999
Current Long-term debt due within one year $ 141,404 $ 30,446Liabilities Accounts payable 298,175 153,256
Employee compensation and benefits 231,684 110,203
Contracts payable for broadcast rights 271,510 276,307
Deferred income 90,421 62,737
Income taxes 129,954 24,140
Other 286,076 158,405
Total current liabilities 1,449,224 815,494
Long-Term PHONES debt related to AOL Time Warner stock 700,000 1,328,480Debt Other long-term debt (less portions due within one year) 3,307,041 1,365,593
Other Deferred income taxes 2,146,416 1,186,272Non-Current Contracts payable for broadcast rights 390,657 269,698Liabilities Deferred compensation and benefits 329,509 108,015
Other obligations 467,449 207,878
Total other non-current liabilities 3,334,031 1,771,863
Commitments and Contingent Liabilities – –
Shareholders’ Series B convertible preferred stock (without par value)Equity Authorized: 1,600,000 shares;
Issued and outstanding: 1,212,834 shares in 2000 and 1,282,665 shares in 1999 (liquidation value $220 per share) 265,790 281,093
Series C convertible preferred stockAuthorized: 900,000 shares;Issued and outstanding: 88,519 shares (net of 354,077 treasury shares)
(liquidation value $500 per share) 44,284 –
Series D-1 convertible preferred stockAuthorized: 400,000 shares;Issued and outstanding: 76,194 shares (net of 304,778 treasury shares)
(liquidation value $500 per share) 38,097 –
Series D-2 convertible preferred stockAuthorized: 300,000 shares;Issued and outstanding: 49,020 shares (net of 196,080 treasury shares)
(liquidation value $500 per share) 24,510 –
Common stock ($0.01 par value in 2000, without par value in 1999)Authorized: 1,400,000,000 shares; 536,886,513 shares issued in 2000and 327,086,632 shares issued in 1999 3,116 1,018
Additional paid-in capital 8,190,811 136,108
Retained earnings 4,278,464 4,184,037
Treasury common stock (at cost)236,727,470 shares in 2000 and 88,071,818 shares in 1999 (6,970,703) (1,430,900)
Treasury common stock held by Tribune Stock Compensation Fund (at cost) 641,094 shares in 2000 and 1,223,384 shares in 1999 (26,707) (61,909)
Unearned compensation related to ESOP (97,517) (127,595)
Accumulated other comprehensive income 135,771 476,765
Total shareholders’ equity 5,885,916 3,458,617
Total liabilities and shareholders’ equity $14,676,212 $8,740,047
See notes to consolidated financial statements included in the Company’s Annual Report on Form 10-K.
28
Consolidated Statements of Cash FlowsTribune Company and Subsidiaries
(in thousands of dollars) year ended Dec. 31, 2000 Dec. 26, 1999 Dec. 27, 1998
Operations Income from continuing operations, net of cumulative effect of change in accounting principle $310,401 $1,446,902 $389,197
Adjustments to reconcile income from continuing operationsto net cash provided by continuing operations:
Loss (gain) on change in fair values of derivatives & related investments 100,965 (215,876) –
Loss (gain) on sales of subsidiaries and investments, net of write-downs 48,001 (444,927) (119,119)
Minority interest expense, net of tax 16,335 – –
Gain on reclassification of investments – (1,095,976) –
Cumulative effect of accounting change, net of tax – 3,060 –
Depreciation and amortization of intangible assets 370,627 194,635 170,174
Net loss on equity investments 79,374 40,083 33,980
Deferred income taxes (43,972) 711,872 25,384
Changes in working capital items excluding effects from acquisitions:Accounts receivable 23,155 (87,837) (33,690)
Inventories, prepaid expenses and other current assets 27,850 (3,308) (2,891)
Accounts payable, employee compensation and benefits,deferred income and accrued liabilities (20,401) (25,712) 22,203
Income taxes 122,714 (49,412) 42,844
Change in broadcast rights, net of liabilities 7,778 5,528 (1,072)
Other, net 50,540 38,169 (64)
Net cash provided by continuing operations 1,093,367 517,201 526,946
Net cash provided by assets held for sale and discontinued operations 10,607 42,393 16,990
Net cash provided by operations 1,103,974 559,594 543,936
Investments Capital expenditures (302,471) (125,578) (128,800)
Acquisition of Times Mirror, net of cash acquired (excluding stock issued) (2,793,052) – –
Other acquisitions (excluding stock issued) (111,723) (189,473) (98,436)
Investments (224,700) (211,590) (40,245)
Net maturities (purchases) of marketable securities 344,541 (344,541) –
Proceeds from sale of discontinued operations, net of tax 642,253 – –
Proceeds from sales of assets held for sale, net of tax 1,340,000 – –
Proceeds from sales of investments and subsidiaries 161,751 98,595 51,585
Net (increase) decrease in advances to investee (162) 51,908 (52,244)
Other, net (1,139) 16,168 (7,801)
Net cash used for investments of continuing operations (944,702) (704,511) (275,941)
Net cash used for investments of assets held for sale and discontinued operations (60,270) (29,575) (71,226)
Net cash used for investments (1,004,972) (734,086) (347,167)
Financing Net proceeds from issuance of PHONES debt – 1,230,880 –
Proceeds from issuance of other long-term debt 513,605 – 469,878
Repayments of long-term debt (187,445) (183,020) (335,723)
Sales of common stock to employees, net 122,497 53,960 46,129
Purchases of treasury common stock (870,646) (37,015) (261,160)
Purchases of treasury common stock by Tribune Stock Compensation Fund (52,453) (167,582) (68,988)
Dividends (139,790) (104,146) (101,090)
Net cash provided by (used for) financing of continuing operations (614,232) 793,077 (250,954)
Net Increase (Decrease) in Cash and Cash Equivalents (515,230) 618,585 (54,185)
Cash and cash equivalents, beginning of year 631,018 12,433 66,618
Cash and cash equivalents, end of year $115,788 $ 631,018 $ 12,433
See notes to consolidated financial statements included in the Company’s Annual Report on Form 10-K.
29
Board of Directors
Andrew J. McKennaChairman and Chief Executive Officer, SchwarzWorldwide, an international distributor of paper packaging and related products and a printer, producerand converter. Age 71. Director since 1982.
Kristie MillerAuthor; Journalist, The Daily News-Tribune, Inc. of LaSalle, Illinois. Age 56. Director since 1981.
James J. O’ConnorRetired Chairman and Chief Executive Officer ofUnicom Corporation, a holding company, andCommonwealth Edison Company, an electric utility.Age 64. Director since 1985.
Patrick G. RyanChairman, Chief Executive Officer and Director, Aon Corporation, a broad-based insurance holdingcompany. Age 63. Director since 1997.
William Stinehart, Jr.Partner, Gibson, Dunn & Crutcher LLP, a law firm. Age 56. Director since 2000.
Dudley S. TaftPresident and Director, Taft Broadcasting Company, an investor in media and entertainment companies. Age 60. Director since 1996.
Thomas UntermanManaging Partner and Chief Executive Officer, Rustic Canyon Group, a private equity investment firm. Age 56. Director since 2000.
Arnold R. WeberPresident-Emeritus, Northwestern University. Age 71. Director since 1989.
Jeffrey ChandlerPresident and Chief Executive Officer, Chandler Ranch Co., an avocado producer; President and ChiefExecutive Officer, Western Telecommunications, Inc.Age 59. Director since 2000.
Dennis J. FitzSimonsExecutive Vice President, Tribune Company. President, Tribune Broadcasting Company. Age 50. Director since 2000.
Roger E. GoodanVice President of Marketing, Schlumberger OilfieldServices North America. Age 54. Director since 2000.
Diego E. HernandezVice Admiral, U.S. Navy (Retired); President, MarineTechnology Group, Inc., a technical consulting service.Age 66. Director since 1991.
Enrique Hernandez, Jr. Chairman, President and Chief Executive Officer, Inter-Con Security Systems, Inc., an international security services firm. Age 45. Director since 2001.
Robert E. La BlancPresident, Robert E. La Blanc Associates, Inc., consultants in information technology. Age 67. Director since 1982.
John W. MadiganChairman, President and Chief Executive Officer,Tribune Company. Age 63. Director since 1975.
Nancy Hicks MaynardPresident, Maynard Partners Incorporated, consultantsin news media economics. Age 54. Director since 1995.
30
TRIBUNE BROADCASTING COMPANYChicagoDennis J. FitzSimonsPresident
Gerald W. AgemaVice President/Administration and Chief Financial Officer
James L. EllisVice President/GroupOperations
Ira H. GoldstoneVice President/Engineeringand Technology
John F. PoelkingVice President/Controller
Myrna G. RamirezVice President/Human Resources
Marc S. SchacherVice President/Programming and Development
Television
Tribune TelevisionPatrick J. MullenPresident
Michael EignerPresident/Tribune Cable
Peter S. WalkerSenior Vice President
WPIX (WB11)New YorkBetty Ellen BerlaminoGeneral Manager
KTLA (WB5)Los AngelesJohn E. ReardonGeneral Managerand Vice President/Tribune Television–West Coast Region
WGN (WB9)ChicagoJohn. J. VitanovecGeneral Manager
Broadcasting
Principal Businesses and Management
John W. MadiganChairman, President and Chief Executive Officer
Dennis J. FitzSimonsExecutive Vice President
Donald C. GreneskoSenior Vice PresidentFinance and Administration
Crane H. KenneySenior Vice President, General Counsel and Secretary
Luis E. LewinSenior Vice PresidentHuman Resources
Andrew J. OleszczukSenior Vice PresidentDevelopment
Jeff R. ScherbSenior Vice President andChief Technology Officer
H. Kathleen AmecheVice President and Chief Information Officer
Irene M. FreutelVice President Compensation and Benefits
David J. GranatVice President and Treasurer
Mark W. HianikVice President, AssistantGeneral Counsel andAssistant Secretary
Thomas D. LeachVice PresidentDevelopment
R. Mark MalloryVice President and Controller
Ruthellyn MusilVice PresidentCorporate Relations
Linda Riley MitchellVice PresidentFinance Service Center
Shaun M. SheehanVice PresidentWashington
David L. Underhill Vice PresidentIntergroup Development
Gary WeitmanVice PresidentCommunications
Venture Investments
Randall S. GleinVice President
David W. KniffinVice PresidentNew York
Lisa L. WiersmaVice President
WPHL (WB17)PhiladelphiaLeslie GlennGeneral Manager
WLVI (WB56)BostonVincent ManziGeneral Manager
KDAF (WB33)DallasJoseph A. YoungGeneral Manager
WBDC (WB50)Washington, D.C.Jerome P. MartinGeneral Manager
WATL (WB36)AtlantaDaniel J. BerkeryGeneral Manager
KHWB (WB39)HoustonThomas E. EhlmannGeneral Manager
KCPQ (FOX13)KTWB (WB22)SeattlePamela S. PearsonGeneral Manager
WBZL (WB39)MiamiJames D. ZerwekhGeneral Manager
KWGN (WB2)DenverDerek M. DaltonGeneral Manager
KTXL (FOX40)Sacramento, Calif.Audrey FarringtonGeneral Manager
KSWB (WB69)San DiegoLisé M. MarkhamGeneral Manager
WXIN (FOX59)IndianapolisLinda GrayGeneral Manager
WTIC (FOX61)Hartford, Conn.Gary G. ZenobiGeneral Manager
WXMI (FOX17)Grand Rapids, Mich.Eduardo B. FernandezGeneral Manager
WGNO (ABC26)WNOL (WB38)New OrleansMichael C. LaBoniaGeneral Manager
WPMT (FOX43)Harrisburg, Pa.John A. RiggleGeneral Manager
WEWB (WB45)Albany, N.Y.Diana-Marie HowardGeneral Manager
WGN CableChicagoKevin P. MurphyGeneral Manager
Radio
WGN (720 AM)ChicagoStephen D. CarverGeneral Managerand Vice President/Radio Group
KKHK (99.5 FM)KOSI (101.1 FM)KEZW (1430 AM)DenverJane E. BartschGeneral Manager
TV Programming
Tribune Entertainment CompanyLos AngelesRichard H. Askin, Jr.President
Baseball
Chicago CubsChicagoAndrew B. MacPhailPresident
Corporate Management
31
Publishing Interactive
TRIBUNE INTERACTIVEChicagoDavid D. HillerPresident
Timothy J. LandonPresident/Classified Services
Dana J. HayesVice President/Sales and eCommerce
Brigid E. KenneyVice President/Chief Financial Officer
Michael O. PlonskiVice President/ChiefTechnology Officer
Michael A. Silver Vice President/Strategy and Development
Barbara WeeksVice President/Market Operations
See inside back cover for a complete list of Tribune Web sites.
National Advertising Sales
Tribune Media NetChicagoDavid P. Murphy President
Cable Programming
CLTV NewsOak Brook, Ill.Denise E. PalmerPresident
Central Florida News 13*Orlando, Fla.Robin A. SmytheGeneral Manager*partnership with Time Warner
Communications
Entertainment Listings and Content Syndication
Tribune Media ServicesChicagoDavid D. WilliamsPresident
Other Products and Services
Tribune newspaper companies produce a wide range of niche publications in addition to their flagship products.These include communitynewspapers, lifestyle magazines and numerouspublications devoted to themajor classified advertisingcategories. Direct marketing, commercial printing andrelated services also areoffered.
TRIBUNE PUBLISHING COMPANYChicagoJack FullerPresident
Raymond A. JansenSenior Vice President
Timothy J. LandonPresident/Classified Services
Richard A. CasonVice President/Newsprint Procurement
Philip B. DohertyVice President/Finance
Timothy R. KennedyVice President/Strategy and Development
Sharon M. MandellVice President/Technology
James E. O’DellVice President/Operationsand Technology
Howard A. TynerVice President/Editorial
Daily Newspapers
Los Angeles TimesLos AngelesJohn P. PuernerPresident
Chicago TribuneChicagoScott C. SmithPresident
NewsdayMelville, N.Y.Raymond A. JansenPresident
The Baltimore SunBaltimoreMichael E. WallerPresident
South Florida Sun-SentinelFt. Lauderdale, Fla.Robert J. GremillionPresident
Orlando SentinelOrlando, Fla.Kathleen M. WaltzPresident
The Hartford CourantHartford, Conn.Jack W. Davis, Jr.President
The Morning CallAllentown, Pa.Guy L. GilmorePresident
Daily PressNewport News, Va.Rondra J. MatthewsPresident
The AdvocateStamford, Conn.Greenwich TimeGreenwich, Conn.Durham J. MonsmaPresident
Spanish-LanguageNewspapers
Hoy (daily)New YorkLouis SitoPresident
¡Exito! (weekly)ChicagoLiza E. GrossPresident
La Opinión* (daily)Los AngelesJosé LozanoPresident*partnership with Lozano
Communications
32
Shareholder Information
Corporate HeadquartersTribune Company435 N. Michigan Ave.Chicago, Illinois 60611312/222-9100www.tribune.com
Investor InformationThis report contains only summary financial information.The complete 2000 consolidated financial statements andfinancial review are contained in Tribune’s Form 10-KAnnual Report to the Securities and Exchange Commission.The 10-K was mailed with this report to all shareholders.
Current and prospective Tribune investors can receivethe annual report, proxy statement, 10-K, earnings announce-ments and other reports and publications at no cost by calling 800/757-1694. The annual report and related financialinformation also are available on Tribune’s Web site.
The contact for securities analysts, portfolio managersand individual investors is Ruthellyn Musil, VicePresident/Corporate Relations. Call 312/222-3787, or send e-mail to [email protected].
Stock InformationTribune common stock is listed on the New York, Chicagoand Pacific stock exchanges. Our ticker symbol is TRB.Tribune has increased its cash dividend for eight consecu-tive years. The current rate is $.11 per share per quarter.
Independent AccountantsPricewaterhouseCoopers LLP, Chicago
Transfer Agent and RegistrarFirst Chicago Trust Company, a division of EquiServe,maintains shareholder records. For assistance on matterssuch as lost shares, name changes on shares or transfers of ownership, please contact:EquiServe, First Chicago DivisionShareholder ServicesP.O. Box 2500Jersey City, N.J. 07303-2500800/446-2617www.equiserve.com
Direct Stock Purchase PlanTribune’s DirectSERVICE Investment Program enables both registered shareholders and new investors to buy and sell shares of Tribune common stock directly throughEquiServe. Please contact EquiServe for more information.
Annual MeetingTribune’s Annual Meeting of Shareholders will be held inChicago on May 8, 2001, 11 a.m. Central Time, at the HyattRegency Chicago, 151 East Wacker Drive. The meeting willbe broadcast live via satellite and distributed as follows:
Telstar 5C (C Band)Transponder 23Vertical PolarityDownlink frequency 4160 MHzAudio: left 6.2 MHz; right 6.8 MHz
To confirm satellite reception instructions, please callCorporate Relations, 312/222-4432, the week prior to the annual meeting. Live audio and video from the annualmeeting also will be available at www.tribune.com.
Equal Employment OpportunityTribune believes in equal employment opportunity. TheCompany’s policy is to hire and promote the most qualifiedapplicants and to comply with all federal, state and localequal employment opportunity laws.
Forward-Looking StatementsThis report contains comments and forward-looking statements that are based largely on Tribune’s currentexpectations and are subject to certain risks, trends anduncertainties. Such comments and statements should beunderstood in the context of Tribune’s publicly availablereports filed with the Securities and Exchange Commission,including the most recent 10-K and 10-Q, which discuss various factors that may affect the Company’s business.These factors could cause actual future performance to differ materially from current expectations. Tribune is not responsible for updating the information contained in this report.
PhotographyJames SchnepfCedarburg, Wis.Cover and pages 6, 8, 10 and 12
Christopher WalkerChicago TribunePage 3
Other photo creditsDavid Cotton, Orlando Sentinel
CommunicationsJ. Emilio FloresGlenn Kaupert, Chicago TribuneLee Kissinger Lori Adamski PeekMaryanne Russell Phil Velasquez, Chicago Tribune
DesignPressley Jacobs Design Inc.Chicago
PrintingLitho Inc.St. Paul, Minn.
WPIX-TV, New Yorkwb11.com
KTLA-TV, Los Angelesktla.com
WGN-TV, Chicagowgntv.com
CLTV News, Chicagocltv.com
WPHL-TV, Philadelphiawb17.com
WLVI-TV, Bostonwb56.com
KDAF-TV, Dallaskdaf.com
WBDC-TV, Washingtonwbdc.com
WATL-TV, Atlantawb36.com
KHWB-TV, Houstonkhwbtv.com
KCPQ-TV, Seattlekcpq.com
KTWB-TV, Seattlektwbtv.com
WBZL-TV, Miamiwb39.com
KWGN-TV, Denverwb2.com
KTXL-TV, Sacramentoktxl.com
KSWB-TV, San Diegokswbtv.com
WXIN-TV, Indianapolisfox59.com
WTIC-TV, Hartfordfox61.com
WXMI-TV, Grand Rapidswxmi.com
WGNO-TV, New Orleansabc26.com
WNOL-TV, New Orleanswb38.com
WPMT-TV, Harrisburgfox43.com
WEWB-TV, Albanywewbtv.com
WGN superstationwgncable.com
Tribune Entertainmenttribtv.com
Com
mun
ity &
Lei
sure
Cla
ssifi
eds
Trib
une
Med
ia S
ervi
ces
WGN-AM, Chicagowgnradio.com
KKHK-FM, Denverthehawk.com
KOSI-FM, Denverkosi101.com
KEZW-AM, Denverkezw.com
African-American communityblackvoices.com
Local sportschicagosports.com
Central Florida tourismgo2orlando.com
Chicago guidemetromix.com
Los Angeles guidecalendarlive.com
South Florida guideshowtimeinteractive.com
Hampton Roads guidehrticket.com
Recruitmentcareerbuilder.com*brassring.com*blackvoices.com
Tech jobs (Chicago)siliconprairie.com
Classified Ventures*classifiedventures.comcars.comapartments.comnewhomenetwork.com
General merchandise (Los Angeles)recycler.com
* Operated in partnership with other media companies
Tribune Company’s home page is www.tribune.com. From there, you can link to the sites listed on this page as well as other Tribune-operated sites. The prefix foreach Web address below is www.
Los Angeles Timeslatimes.com
Chicago Tribunechicagotribune.com
Newsday(Long Island, N.Y.)newsday.com
The Baltimore Sunsunspot.net
South Florida Sun-Sentinelsun-sentinel.com
Radi
o
Home pagetms.tribune.com
Comic stripscomicspage.com
TV, movie and Internet informationzap2it.com
Total Market Coverage andspecial sections productsonthemarkmedia.com
Animations, graphics andWeb packagesworkingparts.comworkingstock.com
Trib
une
Web
Site
sTe
levi
sion
New
spap
ers The Advocate
(Stamford, Conn.)stamfordadvocate.com
Greenwich Time (Greenwich, Conn.)greenwichtime.com
La Opinión (Spanish/Los Angeles)laopinion.com
Hoy (Spanish/New York)holahoy.com
Orlando Sentinelorlandosentinel.com
The Hartford Courantctnow.com
The Morning Call (Allentown, Pa.)mcall.com
Daily Press(Newport News, Va.)dailypress.com
Tribune Company 435 North Michigan Avenue Chicago, Illinois 60611 www.tribune.com