Note 11: Commitments, Contingencies and Other

Broadcast film rights

Over the next six years, the Company is committed to purchase approximately $21.5 million of program rights that are not currently available for broadcast, including programs not yet produced. If such programs are not produced, the Company's commitment would expire without obligation.

Lease obligations

The Company rents certain facilities and equipment under operating leases. These leases extend for varying periods of time ranging from one year to more than twenty years and in many cases contain renewal options. Total rental expense for continuing operations amounted to $6.6 million in 2011 and $6.8 million in both 2010 and 2009. Minimum rental commitments for continuing operations under operating leases with noncancelable terms in excess of one year are as follows: 2012 – $5.5 million; 2013 – $3.7 million; 2014 – $2.4 million; 2015 – $1.9 million; 2016 – $1.4 million; subsequent years – $6.7 million.

Barter transactions

The Company engages in barter transactions primarily for its television air time and recognized revenues and expenses of $9.8 million, $9.5 million and $9.4 million in 2011, 2010 and 2009, respectively.

Interest

In 2011, 2010 and 2009, the Company's interest expense related to continuing operations was $64.4 million (net of $.5 million capitalized), $71.1 million (including $5.5 million of debt issuance costs expensed immediately when the new financing structure was consummated) and $42 million (net of $.2 million capitalized), respectively. Interest paid during 2011, 2010 and 2009, net of amounts capitalized, was $61.5 million, $56.6 million and $36.3 million, respectively.

Other current assets

Other current assets included program rights of $7.4 million and $13.3 million at December 25, 2011 and December 26, 2010, respectively.

Other assets

Other assets included assets held for sale of $4.3 million and $3.7 million in 2011 and 2010, respectively.

Accrued expenses and other current liabilities

Accrued expenses and other current liabilities consisted of the following:


(In thousands)	2011		2010
Payroll and employee benefits	$	26,607	$	25,279
Deferred revenue		18,108		18,433
Interest		14,199		15,231
Program rights		6,978		12,707
Interest rate swaps		—		6,891
Other		8,177		11,243

Total	$	74,069	$	89,784

Insurance Recoveries

In the third quarter of 2009, the Company received cash of $3.5 million related to the collapse of television towers at WSPA following a storm; a portion of that settlement related to clean-up costs at the site. The Company wrote off the net book value of the destroyed towers totaling $1.3 million and recorded a gain of $1.9 million as the insured value of the property exceeded its net book value. In 2007, one of three presses at the Company's Richmond Times-Dispatch printing facility caught fire which resulted in a 2007 settlement with the insurance company to cover the damaged press in addition to clean-up and repair costs in that year as well as subsequent years. In 2010, the Company identified more cost-effective methods to clean the equipment, remediate the facility, and remove the press than previously anticipated, and consequently, recorded a pretax gain of $1 million related to the insurance settlement. The gain was recorded on the Statements of Operations in the line item "Gain on insurance recovery."

Other

The FCC mandated a reallocation of a portion of the broadcast spectrum to others, including Sprint/Nextel. According to the FCC order, broadcasters surrendered their old equipment to prevent interference within a narrowed broadcasting frequency range. In exchange for the relinquished equipment, Sprint/Nextel provided broadcasters with new digital equipment and reimbursed associated out-of-pocket expenses. The Company recorded a gain associated with the spectrum reallocation of $2.6 million in 2009 in the line item "Selling, general and administrative" on the Consolidated Statements of Operations. The Company's television stations completed the replacement of equipment in 2009.

Severance

The Company accrues severance expense when payment of benefits is both probable and the amount is reasonably estimable. The Company records severance expense related to involuntary employee terminations in the "Employee compensation" line item on the Consolidated Statements of Operations. Workforce reductions have been in response to economic weakness and the Company's continuing efforts to align its costs with available revenues. The Company recorded severance expense of $5.9 million, $2.3 million, and $6.6 million for 2011, 2010, and 2009 respectively. Accrued severance costs are included in the "Accrued expenses and other liabilities" line item on the Consolidated Balance Sheet. The following table represents a summary of severance activity, as well as balances in accrued severance at December 25, 2011, December 26, 2010 and December 27, 2009:


(In thousands)	Virginia/ Tennessee			Florida			Mid- South			North Carolina			Ohio/ Rhode Island			Advertising Services & Other			Corporate			Consolidated
Accrued severance-2009	$	125		$	—		$	13		$	11		$	—		$	19		$	67		$	235

Severance expense		364			142			63			460			245			923			128			2,325
Severance payments		(229	)		(142	)		(76	)		(415	)		(12	)		(586	)		(181	)		(1,641	)

Accrued severance-2010		260			—			—			56			233			356			14			919

Severance expense		742			4,005			43			478			79			317			254			5,918
Severance payments		(1,002	)		(1,198	)		(30	)		(419	)		(312	)		(584	)		(95	)		(3,640	)

Accrued severance-2011	$	—		$	2,807		$	13		$	115		$	—		$	89		$	173		$	3,197