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Debt Obligations
9 Months Ended
Sep. 25, 2011
Debt Disclosure [Abstract] 
Debt Disclosure
DEBT OBLIGATIONS

As of September 25, 2011, our current indebtedness included senior notes 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
 
September 25,
2011
 
December 26,
2010
Senior notes due 2015, called in 2011
 
14.053
%
 
$
—

 
$
227,680

Senior notes due 2012
 
4.610
%
 
74,867

 
74,771

Senior notes due 2015
 
5.0
%
 
249,883

 
249,860

Senior notes due 2016
 
6.625
%
 
220,612

 
220,102

Option to repurchase ownership interest in headquarters building in 2019
 
 
 
219,952

 
217,306

Total debt
 
 
 
765,314

 
989,719

Capital lease obligations
 
 
 
6,707

 
6,724

Total debt and capital lease obligations
 
 
 
$
772,021

 
$
996,443



Prepayment of 14.053% Notes

On August 15, 2011, we prepaid in full all $250.0 million outstanding aggregate principal amount of the 14.053% senior unsecured notes due January 15, 2015 (the “14.053% Notes”). The prepayment totaled approximately $280 million, comprising (1) the $250.0 million aggregate principal amount of the 14.053% Notes, (2) approximately $3 million representing all interest that was accrued and unpaid on the 14.053% Notes to August 15, 2011, and (3) a make-whole premium amount of approximately $27 million due in connection with the prepayment. We funded the prepayment from available cash. As a result of this prepayment, we recorded a $46.4 million pre-tax charge in the third quarter of 2011.
 
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 approximately $863 million as of September 25, 2011 and $1.1 billion as of December 26, 2010.

New Revolving Credit Facility

In June 2011, we entered into 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 September 25, 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 Nine Months Ended
(In thousands)
 
September 25,
2011
 
September 26,
2010
 
September 25,
2011
 
September 26,
2010
Cash interest expense
 
$
18,712

 
$
18,910

 
$
64,880

 
$
56,922

Non-cash amortization of discount on debt
 
1,445

 
2,113

 
5,632

 
6,054

Capitalized interest
 
(11
)
 
(80
)
 
(343
)
 
(100
)
Interest income
 
(107
)
 
(316
)
 
(387
)
 
(1,051
)
Total interest expense, net
 
$
20,039

 
$
20,627

 
$
69,782

 
$
61,825