XML 48 R30.htm IDEA: XBRL DOCUMENT v2.4.1.9
COMMITMENTS AND CONTINGENCIES (Tables)
12 Months Ended
Dec. 28, 2014
COMMITMENTS AND CONTINGENCIES  
Summary of minimum annual contractual obligations

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Payments Due By Period

 

(in thousands)

 

2015

 

2016

 

2017

 

2018

 

2019

 

Thereafter

 

Total

 

Purchase obligations (1) 

    

$

30,947 

    

$

13,526 

    

$

8,876 

    

$

6,614 

    

$

6,601 

    

$

35,995 

    

$

102,559 

 

Operating leases (2)

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Lease obligations

 

 

11,152 

 

 

10,535 

 

 

9,655 

 

 

8,431 

 

 

7,075 

 

 

31,180 

 

 

78,028 

 

Sublease income

 

 

(2,018)

 

 

(1,442)

 

 

(737)

 

 

(421)

 

 

(296)

 

 

(698)

 

 

(5,612)

 

Net lease obligation

 

 

9,134 

 

 

9,093 

 

 

8,918 

 

 

8,010 

 

 

6,779 

 

 

30,482 

 

 

72,416 

 

Workers’ compensation obligations (3) 

 

 

4,420 

 

 

3,171 

 

 

2,345 

 

 

1,743 

 

 

1,368 

 

 

4,912 

 

 

17,959 

 

Total (4) 

 

$

44,501 

 

$

25,790 

 

$

20,139 

 

$

16,367 

 

$

14,748 

 

$

71,389 

 

$

192,934 

 

 


(1)

Represents our purchase obligations primarily related to printing outsource agreements and capital expenditures for property, plant and equipment expiring at various dates through 2028. As of December 28, 2014,  this table excludes a fiscal year 2015 purchase commitment of 30,000 metric tons of newsprint from SP Fiber Technologies because it is based on the market price at time of purchase.

(2)

Represents minimum rental commitments under operating leases with non‑cancelable terms in excess of one year and sublease income from leased space. We 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 $12.5 million, $11.2 million and $12.5 million in fiscal years 2014, 2013 and 2012, respectively. Most of the leases provide that we 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. We sublease office space to other companies under noncancellable agreements that expire at various dates through 2023. Sublease income from operating leases totaled $2.2 million, $3.9 million and $3.8 million in fiscal years 2014, 2013 and 2012, respectively.

(3)

Represents the expected insurance payments of undiscounted ultimate losses, net of estimated insurance recoveries of approximately $2.6 million, and is based on our historical payment patterns. We retain 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 28, 2014, we compiled our historical data pertaining to the self‑insurance experiences and actuarially developed the ultimate loss associated with our self‑insurance programs for workers’ compensation liability. We believe that the actuarial valuation provides the best estimate of the ultimate losses to be expected under these programs. The undiscounted ultimate losses of all our self‑insurance reserves related to our workers’ compensation liabilities, net of insurance recoveries at December 28, 2014 and December 29, 2013, were $18.0 million and $18.7 million, respectively. We discount the net amount above to present value using an approximate risk‑free rate over the average life of our insurance claims. For the years ended December 28, 2014 and December 29, 2013, the discount rate used was 2.0% and 1.9%, respectively. The present value of all self‑insurance reserves, net of estimated insurance recoveries, for our workers’ compensation liability recorded at December 28, 2014 and December 29, 2013, was $17.5 million and $18.7 million, respectively.