Debt Obligations

6 Months Ended

Jun. 26, 2011

DEBT OBLIGATIONS

As of June 26, 2011, our current indebtedness included senior notes; a private financing arrangement with Inmobiliaria Carso, S.A. de C.V. and Banco Inbursa S.A., Institución de Banca Múltiple, Grupo Financiero Inbursa; and a sale-leaseback of a portion of our New York headquarters. Our total debt and capital lease obligations consisted of the following:



(In thousands)	Coupon Rate		June 26, 2011		December 26, 2010
Senior notes due 2015, called in 2011	14.053	%	$	229,684	$	227,680
Senior notes due 2012	4.610	%	74,835		74,771
Senior notes due 2015	5.0	%	249,875		249,860
Senior notes due 2016	6.625	%	220,439		220,102
Option to repurchase ownership interest in headquarters building in 2019			219,072		217,306
Total debt			993,905		989,719
Capital lease obligations			6,713		6,724
Total debt and capital lease obligations			$	1,000,618	$	996,443

Current Portion of Long-Term Debt

On July 11, 2011, we gave notice to the holders of our 14.053% senior unsecured notes due January 15, 2015 (the “14.053% Notes”) of our election to prepay, in full, all $250.0 million outstanding aggregate principal amount of the 14.053% Notes on August 15, 2011. As a result, the carrying value of the 14.053% Notes totaling $229.7 million is included in “Current portion of long-term debt and capital lease obligations” in our Condensed Consolidated Balance Sheet as of June 26, 2011. See Note 16 for additional information regarding our election to prepay the 14.053% Notes.

Long-Term Debt

Based on borrowing rates currently available for debt with similar terms and average maturities, the fair value of our long-term debt was $887 million as of June 26, 2011 and $1.1 billion as of December 26, 2010.

New Revolving Credit Facility

In early June 2011, we completed a new $125.0 million asset-backed 5-year revolving credit facility. This new credit facility replaced our $400.0 million revolving credit facility, which was to expire on June 21, 2011. As of June 26, 2011, there were $0 outstanding borrowings under the new credit facility.

Borrowings under the new credit facility will be secured by a lien on certain advertising receivables. In addition, borrowings bear interest at specified margins based on our utilization and at rates that vary between the LIBOR and prime rates (as defined by the credit agreement) depending on the term to maturities we specify. The new credit facility contains various customary affirmative and negative covenants.

Interest expense, net

“Interest expense, net” in our Condensed Consolidated Statements of Operations was as follows:



	For the Quarters Ended						For the Six Months Ended
(In thousands)	June 26, 2011			June 27, 2010			June 26, 2011			June 27, 2010
Cash interest expense	$	23,215		$	19,052		$	46,168		$	38,012
Non-cash amortization of discount on debt	2,085			1,937			4,187			3,941
Capitalized interest	(27		)	(20		)	(332		)	(20		)
Interest income	(121		)	(355		)	(280		)	(735		)
Total interest expense, net	$	25,152		$	20,614		$	49,743		$	41,198

- Definition

The entire disclosure for information about short-term and long-term debt arrangements, which includes amounts of borrowings under each line of credit, note payable, commercial paper issue, bonds indenture, debenture issue, own-share lending arrangements and any other contractual agreement to repay funds, and about the underlying arrangements, rationale for a classification as long-term, including repayment terms, interest rates, collateral provided, restrictions on use of assets and activities, whether or not in compliance with debt covenants, and other matters important to users of the financial statements, such as the effects of refinancing and noncompliance with debt covenants.

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