Commitments And Contingencies

12 Months Ended

Dec. 25, 2011

Commitments And Contingencies [Abstract]

Commitments And Contingencies

NOTE 8. COMMITMENTS AND CONTINGENCIES  

The Company has purchase obligations primarily related to printing outsource agreements and capital expenditures for property, plant and equipment expiring at various dates through 2028, totaling $130.3 million.

Lease commitments—The Company and its subsidiaries rent certain facilities and equipment under operating leases expiring at various dates through 2028. Total rental expense, included in other operating expenses, from continuing operations amounted to $13.3 million in fiscal 2011, $14.5 million in fiscal 2010 and $15.2 million in fiscal 2009. Most of the leases provide that the Company pay taxes, maintenance, insurance and certain other operating expenses applicable to the leased premises in addition to the minimum monthly payments. Some of the operating leases have built in escalation clauses.

The Company has subleased office space to other companies under noncancellable agreements that expire at various dates through 2028. Sublease income from operating leases totaled $4.4 million, $3.0 million and $2.5 million in fiscal 2011, 2010 and fiscal 2009, respectively.

Minimum rental commitments under operating leases with non-cancelable terms in excess of one year and sublease income from leased space are (in thousands):

Year	Lease Obligation		Sublease Income			Net Amount
2012	$	12,484	$	(3,329	)	$	9,155
2013		11,572		(2,519	)		9,053
2014		10,201		(1,529	)		8,672
2015		7,978		(1,197	)		6,781
2016		6,807		(747	)		6,060
2017		6,520		(298	)		6,222
Thereafter		30,503		(442	)		30,061
Total	$	86,065	$	(10,061	)	$	76,004

Self-Insurance—The Company retains the risk for workers' compensation resulting from uninsured deductibles per accident or occurrence that are subject to annual aggregate limits. Losses up to the deductible amounts are accrued based upon known claims incurred and an estimate of claims incurred but not reported. For the year ended December 25, 2011, the Company compiled its historical data pertaining to the self-insurance experiences and actuarially developed the ultimate loss associated with its self-insurance programs for workers' compensation liability. Management believes that the actuarial valuation provides the best estimate of the ultimate losses to be expected under these programs.

The undiscounted ultimate losses of all the Company's self-insurance reserves at December 25, 2011, and December 26, 2010, were $20.5 million and $20.4 million, respectively. Based on historical payment patterns, the Company expects payments of undiscounted ultimate losses to be made as follows (in thousands):

Year	Amount
2012	$	5,051
2013		3,530
2014		2,616
2015		1,967
2016		1,548
Thereafter		5,794
Total	$	20,506

The Company discounts the ultimate losses above to present value using an approximate risk-free rate over the average life of its insurance claims. For the years ended December 25, 2011, and December 26, 2010, the discount rate used was 1.4% and 2.2%, respectively. The present value of all self-insurance reserves for the employee group health claims and workers' compensation liability recorded at December 25, 2011, and December 26, 2010, was $20.4 million and $19.9 million, respectively.

The Company had letters of credit of $47.0 million outstanding at December 25, 2011, primarily to collateralize its self-insurance obligations.

Other contingent claims- There are libel and other legal actions that have arisen in the ordinary course of business and are pending against the Company. From time to time the Company is involved as a party in various governmental proceedings, including environmental matters. Management believes, after reviewing such actions with counsel, that the expected outcome of pending actions will not have a material effect on the Company's consolidated financial statements taken as a whole, although no assurances can be given. No material amounts for any losses from litigation which may ultimately occur have been recorded in the consolidated financial statements, as management believes that any such losses are not probable.

The Company has certain indemnifications related to workers' compensation claims and multi-employer pension plans of disposed newspaper operations. In 2010 the Company reversed a reserve (and recorded income) of $6.5 million related to certain of the indemnification obligations as the related newspapers paid current amounts and showed the ability to continue to meet their obligations to the Company. In 2009, the Company reserved amounts totaling $10.7 million related to these indemnifications. Remaining indemnification obligations related to disposed newspapers are not expected to be material to the Company's financial position or results of operations.