Discontinued Operations

9 Months Ended

Sep. 28, 2014

Discontinued Operations and Disposal Groups [Abstract]

Discontinued Operations

DISCONTINUED OPERATIONS

New England Media Group

In the fourth quarter of 2013, we completed the sale of substantially all of the assets and operating liabilities of the New England Media Group - consisting of The Boston Globe, BostonGlobe.com, Boston.com, Worcester Telegram & Gazette (the “T&G”), Telegram.com and related properties - and our 49% equity interest in Metro Boston, for approximately $70 million in cash, subject to customary adjustments. The net after-tax proceeds from the sale, including a tax benefit, were approximately $74 million. In 2013, we recognized a pre-tax gain of $47.6 million on the sale ($28.1 million after tax), which was almost entirely comprised of a curtailment gain on postretirement benefit obligations. This curtailment gain is primarily related to an acceleration of prior service credits from plan amendments announced in prior years, and is due to a cessation of service for employees at the New England Media Group. In the first quarter of 2014, we recorded a working capital adjustment of $1.6 million. The results of operations of the New England Media Group have been classified as discontinued operations for all periods presented.

As a result of the sale, we triggered complete or partial withdrawal obligations under several multiemployer pension plans. Accordingly, we recorded a pension withdrawal expense estimated to be approximately $8.0 million in the third quarter of 2013. The actual liability will not be known until each plan completes a final assessment of the withdrawal liability and issues a demand to us.

The carrying value of goodwill and intangible assets associated with the New England Media Group had been previously written down to zero. During the third quarter of 2013, we estimated the fair value less cost to sell of the group, which resulted in a $34.3 million impairment charge for fixed assets at the New England Media Group.

The results of operations for the New England Media Group presented as discontinued operations are summarized below.

	For the Quarters Ended					For the Nine Months Ended
(In thousands)	September 28, 2014		September 29, 2013			September 28, 2014			September 29, 2013
Revenues	$	—	$	89,073		$	—		$	268,737
Total operating costs	—		85,157			—			262,079
Multiemployer pension plan withdrawal expense(1)	—		7,997			—			7,997
Write-down of assets	—		34,300			—			34,300
Loss from joint ventures	—		(82		)	—			(205		)
Interest expense, net	—		3			—			9
Pre-tax loss	—		(38,466		)	—			(35,853		)
Income tax benefit	—		(19,479		)	—			(16,858		)
(Loss) from discontinued operations, net of income taxes	—		(18,987		)	—			(18,995		)
(Loss)/gain on sale, net of income taxes:
Loss on sale	—		—			(1,559		)	—
Income tax benefit	—		—			(565		)	—
Loss on sale, net of income taxes	—		—			(994		)	—
(Loss) from discontinued operations, net of income taxes	$	—	$	(18,987	)	$	(994	)	$	(18,995	)

(1) The multiemployer pension plan withdrawal expense related to estimated charges for complete or partial withdrawal obligations under multiemployer pension plans triggered by the sale of the New England Media Group.