Commitments and Contingencies

6 Months Ended

Jun. 24, 2012

Commitments and Contingencies [Abstract]

COMMITMENTS AND CONTINGENCIES

NOTE 6. COMMITMENTS AND CONTINGENCIES

Contingent claims: Libel, employment (including wage and hour) and other legal actions 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 condensed consolidated financial statements taken as a whole, although no assurances can be given. No material amounts for any losses from litigation that may ultimately occur have been recorded in the condensed consolidated financial statements as management believes that any such losses are not probable.

The Company has certain indemnification obligations related to insurance claims and multiemployer pension plans of disposed newspaper operations. Management believes the remaining obligations related to disposed newspapers will not be material to the Company’s financial position or results of operations.

In addition to the $36.1 million of letters of credit secured under the Company’s Credit Agreement (see Note 4 for further discussion), the Company has $2.2 million in letters of credit arising from insurance and other potential claims. These letters of credit are collateralized with $2.2 million in certificate of deposits and are recorded as other long-term assets in the Company’s condensed consolidated balance sheet.