Employee Benefits

6 Months Ended

Jun. 24, 2012

Employee Benefits [Abstract]

EMPLOYEE BENEFITS

NOTE 5. EMPLOYEE BENEFITS

Contribution of Cash and Real Property to Qualified Defined Benefit Plan: In January 2012, the Company contributed $40.0 million in cash to its qualified defined benefit pension plan. In January 2011, the Company contributed Company-owned real property from seven locations to its qualified defined benefit pension plan. The pension plan obtained independent appraisals of the property, and based on these appraisals the plan recorded the contribution (the fair value of the property) at $49.7 million.

The Company entered into leases for the seven contributed properties for 10 years and expects to continue to use the seven properties in its newspaper operations. The properties are managed on behalf of the pension plan by an independent fiduciary.

The contribution and leaseback of the properties were treated as a financing transaction and, accordingly, the Company will continue to depreciate the carrying value of the properties in its financial statements, and no gain or loss has been recognized on the contribution. The Company’s pension obligation has been reduced by $49.7 million, and a long-term and short-term financing obligation was recorded on the date of the contribution. The financing obligation is reduced by a portion of lease payments made to the pension plan each month and the balance of this obligation at June 24, 2012, was $47.1 million.

Also, in May 2011, the Company used proceeds from the sale of property in Miami (see Note 2) to contribute $163.0 million to its pension plan.

The Company does not currently intend to make any additional contributions to its qualified defined pension plan during fiscal 2012.

Retirement Plans Expenses: The Company’s defined benefit plans were frozen in March 2009. The Company sponsors a defined benefit pension plan (retirement plan), which covers a majority of its employees hired prior to March 31, 2009. Benefits are based on age, years of service and compensation.

The Company also has a limited number of supplemental retirement plans to provide key employees hired prior to March 31, 2009, with additional retirement benefits. These plans are funded on a pay-as-you-go basis, and the accrued pension obligation is largely included in other long-term obligations.

The Company also provides for or subsidizes post-retirement health care and certain life insurance benefits for employees and has a deferred compensation plan (401(k) plan) for its employees, which enables qualified employees to voluntarily defer compensation. The 401(k) plan includes a matching company contribution and a supplemental contribution that is tied to Company performance (as defined in the plan). The Company temporarily suspended its matching contribution to the 401(k) plan in 2009, and it has not yet been reinstated.

The elements of retirement expense for continuing operations are as follows (in thousands):

	Three Months Ended						Six Months Ended
	June 24, 2012			June 26, 2011			June 24, 2012			June 26, 2011
Service cost	$	1,395		$	1,369		$	2,770		$	2,769
Interest cost		23,049			22,688			45,949			46,238
Expected return on plan assets		(26,905	)		(24,538	)		(53,880	)		(48,563	)
Prior service cost amortization		7			7			7			7
Actuarial loss		3,268			1,425			6,343			2,825
Net pension expense		814			951			1,189			3,276
Net post-retirement benefit		(165	)		(67	)		(315	)		(117	)
Total retirement expenses-net	$	649		$	884		$	874		$	3,159