Commitments, contingent liabilities and other matters

Litigation: We, along with a number of our subsidiaries, are defendants in judicial and administrative proceedings involving matters incidental to their business. We do not believe that any material liability will be imposed as a result of these matters.

Leases: Approximate future minimum annual rentals payable under non-cancelable operating leases, primarily real-estate related, are as follows:



In thousands of dollars
2015	$	64,309
2016	55,292
2017	49,209
2018	36,550
2019	30,057
Later years	96,036
Total	$	331,453

Total minimum annual rentals have not been reduced for future minimum sublease rentals aggregating $6.1 million. Total rental costs reflected in 2014 were $67.5 million, $58.4 million in 2013 and $64.6 million in 2012.

Program broadcast contracts: We have $213.5 million of commitments under programming contracts that include television station commitments to purchase programming to be produced in future years. This also includes amounts fixed or currently accrued under network affiliation agreements.

Purchase obligations: We have commitments under purchasing obligations totaling $240.9 million related to printing contracts, capital projects, interactive marketing agreements, wire services and other legally binding commitments. Amounts which we are liable for under purchase orders outstanding at Dec. 28, 2014, are reflected in the Consolidated Balance Sheet as accounts payable and accrued liabilities and are excluded from the $240.9 million.

Self insurance: We are self-insured for most of our employee medical coverage and for our casualty, general liability and libel coverage (subject to a cap above which third party insurance is in place). The liabilities are established on an actuarial basis, with the advice of consulting actuaries, and totaled $80.4 million at the end of 2014 and $92.0 million at the end of 2013.

Other matters: In December 1990, we adopted a Transitional Compensation Plan (the TCP). The TCP provides termination benefits to key executives whose employment is terminated under certain circumstances within two years following a change in control of our company. Benefits under the TCP include a severance payment of up to three years’ compensation and continued life and medical insurance coverage. We amended the TCP in April 2010 to provide that new participants will not be entitled to the benefit of the TCP’s excise tax gross-up or modified single trigger provisions.

In August 2014, we adopted the Gannett Leadership Team Transition Severance Plan (GLT Plan) to promote retention and minimize disruption for certain senior executives in connection with the potential spin-off of our publishing segment into a new, independent publicly traded company.

In March 2011, the Advertiser Company, one of our subsidiaries which publishes The Montgomery Advertiser, was notified by the U.S. EPA that it has been identified as a potentially responsible party for the investigation and remediation of groundwater contamination in downtown Montgomery, AL. At this point in the investigation, incomplete information is available about the site, other potentially responsible parties and what further investigation and remediation may be required. Accordingly, future costs at the site, and The Advertiser Company’s share of such costs, if any, are undetermined. Some of The Advertiser Company’s fees and costs related to this matter may be reimbursed under its liability insurance policies.

In 2014, we exited one of our publishing businesses and incurred $21.0 million of shutdown costs included in Selling, general and administrative expenses, exclusive of depreciation in the Consolidated Statements of Income. These costs, which are associated with future contractual promotional payments, were accrued on our Consolidated Balance Sheet at the end of 2014 and will be primarily paid in 2015.

We are contingently liable for earnout payments to previous owners, depending upon the achievement of certain financial and performance metrics related to certain business acquisitions. During 2014, we paid $22.4 million as the result of payments and adjustments to fair value.