NOTE 12.

RESTATEMENT OF CONSOLIDATED FINANCIAL STATEMENTS

The Company has restated its historical consolidated financial statements for fiscal 2010 and 2009 for the impact of errors in accounting for the value of the land held for sale in Miami, Florida. Subsequent to the issuance of the Company's consolidated financial statements for the years ended December 26, 2010, and December 27, 2009, the Company determined that a $6.0 million parking easement asset related to a contract to sell certain land in Miami entered into in 2005 by Knight-Ridder, Inc. (KRI) prior to the Company's purchase of KRI (the original contract) should have been considered in the carrying value of the land. See Note 2 for an expanded discussion of the original contract.

The carrying value of the land was recorded in other assets on the Company's balance sheet, while the parking easement was recorded in intangible assets. Accordingly, the carrying value of the Miami land should have been higher (and intangible assets lower) by $6.0 million, resulting in additional impairment charges of $3.0 million in both 2009 and 2010 that were not previously recorded.

Selling costs of $2.9 million related to the original contract were recorded in the year ended December 26, 2010 and should have been recorded in the year ended December 27, 2009. Additionally, $16.5 million of nonrefundable deposits associated with the original contract were offset against the carrying value of the land at December 26, 2010. Such offset should not have been reflected until termination of the original contract on January 31, 2011.

As a result, the Company has corrected in its previously presented consolidated balance sheet as of December 26, 2010, and the consolidated statements of operations and cash flows for the years ended December 26, 2010, and December 27, 2009. Management believes the effects of these errors are not material to its previously issued consolidated financial statements. The impact of the restatements on specific line items in its December 26, 2010, balance sheet, statements of operations and statements of cash flows for the years ended December 26, 2010, and December 27, 2009, are presented below (in thousands, except per share amounts):


	Year Ended Dec. 26, 2010						Year Ended Dec. 27, 2009
	As Previously Reported			Restated			As Previously Reported			Restated
Statement of Operations Items:
Write down of investments & land	$	(24,297	)	$	(24,447	)	$	(28,322	)	$	(34,172	)
Income from continuing operations before income tax		38,851			38,701			89,411			83,561
Income tax provision		5,661			5,601			29,147			26,800
Income from continuing operations		33,190			33,100			60,264			56,761
Net Income	$	36,273		$	36,183		$	54,090		$	50,587
Income from continuing operations per share—basic	$	0.39		$	0.39		$	0.72		$	0.68
Income from continuing operations per share —diluted	$	0.39		$	0.39		$	0.72		$	0.68
Net income per share—basic	$	0.43		$	0.43		$	0.65		$	0.61
Net income per share—diluted	$	0.43		$	0.43		$	0.65		$	0.61


	As of Dec. 26, 2010
	As Previously Reported			Restated
Balance Sheet Items:
Identifiable intangibles—net	$	653,225		$	647,225
Total intangibles assets		1,667,482			1,661,482
Other assets		152,501			169,001
Total investment and other assets		459,382			475,882
Total assets		3,136,359			3,146,859
Other current accrued liabilities		14,750			31,250
Total current liabilities		267,285			283,785
Deferred income taxes		232,566			230,159
Total non-current liabilities		2,649,729			2,647,322
Accumulated deficit		(1,746,828	)		(1,750,421	)
Stockholders' equity		219,345			215,752
Total liability & stockholders' equity	$	3,136,359		$	3,146,859


	Year Ended Dec. 26, 2010						Year Ended Dec. 27, 2009
	As Previously Reported			Restated			As Previously Reported			Restated
Statements of Cash Flows Items:
Net income	$	36,273		$	36,183		$	54,090		$	50,587
Net income operations		33,190			33,100			60,264			56,761
Write-down of investments and land		24,297			24,447			28,322			34,172
Other current assets		5,201			(11,299	)		(6,110	)		(6,110	)
Other current liabilities		24,144			40,644			(42,348	)		(42,348	)
Deferred income taxes	$	(25,963	)	$	(26,023	)	$	4,415		$	2,068