| DEFINED BENEFIT PENSION PLANS AND OTHER POST RETIREMENT BENEFITS | DEFINED BENEFIT PENSION PLANS AND OTHER POST RETIREMENT BENEFITS Defined Benefit Plans —As part of the acquisition of the New York Daily News , the Company became the sponsor of the NYDN Pension Plan, a single-employer defined benefit plan. The NYDN Pension Plan provides benefits to certain current and former employees of the New York Daily News . The NYDN Pension Plan is frozen to any new participants and effective in March 2018 the accrual of new benefits to participants was frozen. The unfunded status of the NYDN Pension Plan was $25.4 million , as actuarially determined as of September 3, 2017, the closing date for the New York Daily News acquisition. Summarized information for the NYDN Pension Plan is provided below (in thousands): December 30, 2018 December 31, 2017 Change in benefit obligations: Projected benefit obligations, beginning of year $ 106,446 $ — Service cost 72 142 Interest cost 3,272 1,249 Business combination — 109,581 Actuarial gain (5,442 ) (1,792 ) Curtailment gain — (51 ) Net loans/trust repayment — 4 Benefits paid (7,941 ) (2,687 ) Projected benefit obligations, end of year 96,407 106,446 Change in plans' assets: Fair value of plan assets, beginning of year 85,032 — Business combination — 84,136 Return on plan assets (3,832 ) 2,539 Employer contributions 3,918 1,040 Net loans/trust repayment — 4 Benefits paid (7,941 ) (2,687 ) Fair value of plans' assets, end of year 77,177 85,032 Underfunded status of the plans $ (19,230 ) $ (21,414 ) The Company contributed $3.9 million to the NYDN Pension Plan during the year ending December 30, 2018 and expects to contribute $2.5 million during the year ending December 30, 2019. The amounts recognized in the Company’s Consolidated Balance Sheets for the NYDN Pension Plan as of December 30, 2018 and December 31, 2017 consist of (in thousands): December 30, 2018 December 31, 2017 Pension and postretirement benefits payable $ (19,230 ) $ (21,414 ) Accumulated other comprehensive loss, net of tax 236 (1,965 ) The components of net periodic benefit cost (credit) for the NYDN Pension Plan were as follows (in thousands): December 30, 2018 December 31, 2017 Affected Line Items in the Consolidated Statements of Income Service cost $ 72 $ 142 Compensation Interest cost 3,272 1,249 Other non-operating income Expected return on plan assets (4,667 ) (1,602 ) Other non-operating income Curtailment gain — (51 ) Other non-operating income Net periodic benefit cost (credit) $ (1,323 ) $ (262 ) Pension Assets - The primary investment objective of the NYDN Pension Plan is to ensure, over the long-term life of the plan, an adequate pool of assets to support the benefit obligations to participants, retirees and beneficiaries. A secondary objective of the plan is to achieve a level of investment return consistent with the prudent level of portfolio risk that will minimize the financial effect of the pension plans on the Company. The investments in the pension plans largely consist of low-cost, broad-market index funds to mitigate risks of concentration within market sectors. Each of the funds is diversified across a wide number of securities within its stated asset class. At December 30, 2018 , the NYDN Pension Plan investments are in commingled funds which are recorded at fair value as determined by the sponsor of the respective funds primarily based upon closing market quotes of the underlying assets. The following table sets forth by level, within the fair value hierarchy, the NYDN Pension Plan’s assets at fair value as of December 30, 2018 (in thousands): Level 1 Level 2 Level 3 Total Global public equity $ 19,399 $ — $ — $ 19,399 Fixed income 19,103 — — 19,103 Group annuity contract — — 13 13 $ 38,502 $ — $ 13 Investments valued at net asset value: Cash and cash equivalents 817 Global public equity 19,896 Absolute return 8,474 Real assets 8,993 Pending trades and other receivables 482 Total assets at fair value $ 77,177 The following table sets forth by level, within the fair value hierarchy, the NYDN Pension Plan’s assets at fair value as of December 31, 2017 (in thousands): Level 1 Level 2 Level 3 Total Global public equity $ 11,758 $ — $ — $ 11,758 Fixed income 15,966 — — 15,966 Group annuity contract — — 13 13 $ 27,724 $ — $ 13 Investments valued at net asset value: Cash and cash equivalents 5,975 Global public equity 32,719 Absolute return 9,300 Real assets 9,261 Pending trades and other receivables 40 Total assets at fair value $ 85,032 For the investments in the NYDN Pension Plan valued at net asset value, there are no unfunded commitments for the year ended December 30, 2018 . See the table below for the redemption information: Redemption Frequency Redemption Notice Period Cash and cash equivalents Daily — Global public equity Monthly 16 days Absolute return Quarterly 90-95 days Real assets Quarterly 30-90 days The NYDN Pension Plan-weighted average target allocation and actual allocations at December 30, 2018 by asset category are as follows: 2018 2017 Asset category: Target Allocation Actual Allocation Actual Allocation Global public equity 52.0 % 50.9 % 52.3 % Absolute return 12.0 % 11.0 % 10.9 % Fixed income 23.5 % 24.8 % 18.8 % Real assets 10.0 % 11.7 % 10.9 % Cash 2.5 % 1.1 % 7.0 % Other — % 0.5 % 0.1 % 100.0 % 100.0 % 100.0 % Global Public Equity - Equity investments that will have a global orientation, and may include US, international, emerging market, and global mandates. Convertible securities may also be a component, as well as absolute return strategies that invest in equities. Absolute Return - Commonly known as “hedge funds”, these controlled market risk strategies seek to exploit inefficiencies in the equity markets that may be outside of the universe of traditional long only public equity managers. Absolute return strategies attempt to generate attractive risk-adjusted returns relative to the total equity market, with lower risk of large drawdowns and lower volatility. Fixed Income - The bond portfolio will contribute to the income needs of the Plan. Fixed income generally provides a diversified portfolio with deflation protection during periods of financial duress. Bonds dampen the overall volatility of total Plan results, which is important to help mitigate losses in periods of falling equity markets. Bond markets suffer declines, but they are generally not as severe as those experienced in the equity market. Bond returns are steadier than those of equities because of income received and because bonds have greater precedence in a company’s capital structure. Bonds typically do not fare well in periods of rising inflation. Real Assets - Real Assets are assets that provide investors with a better hedge against loss of purchasing power than equities and fixed income, and moderate long-term growth. Real Assets can include TIPS, private real estate, REITs, commodities, floating rate loans, currencies, Master Limited Partnerships (MLPs), timber, infrastructure and other inflation protection assets. These assets are included to provide protection against inflation, thus preserving the real value of the portfolio over the long term. These assets may exhibit low correlations to other asset classes, thus diversifying the total portfolio. Assumptions —The weighted average assumptions used to determine the NYDN Pension Plan defined benefit obligations are as follows: December 30, 2018 December 31, 2017 Discount rate 4.1 % 3.6 % Rate of compensation increase — % 2.0 % The weighted average assumptions used to determine the NYDN Pension Plan net periodic benefit cost are as follows: December 30, 2018 December 31, 2017 Discount rate 3.6 % 3.5 % Rate of return on assets 5.7 % 5.8 % Rate of compensation increase 2.0 % 2.0 % Expected Future Benefit Payments —Benefit payments expected to be paid under the NYDN Pension Plan are summarized below (in thousands): 2019 $ 8,079 2020 7,884 2021 7,678 2022 7,488 2023 7,280 2024-2027 33,129 Postretirement Benefits Other Than Pensions — The Company provides postretirement health care and life insurance benefits to Tribune employees under a number of plans. There is some variation in the provisions of these plans, including different provisions for lifetime maximums, prescription drug coverage and certain other benefits. Obligations and Funded Status —The funded status and the related service costs and comprehensive income has been actuarially determined based on eligible employees and is reflected in these Consolidated Financial Statements. Summarized information for the Company’s other postretirement plans is provided below (in thousands): December 30, 2018 December 31, 2017 Change in benefit obligations: Projected benefit obligations, beginning of year $ 1,731 $ 9,648 Service cost 13 11 Interest cost 37 189 Plan amendments — (5,838 ) Actuarial gain 181 (681 ) Benefits paid (930 ) (1,598 ) Projected benefit obligations, end of year 1,032 1,731 Change in plans' assets: Employer contributions 930 1,598 Benefits paid (930 ) (1,598 ) Fair value of plans' assets, end of year — — Underfunded status of the plans $ (1,032 ) $ (1,731 ) During 2017, the Company made the decision to split the post-retirement medical plan into two separate plans, one for union employees and one for non-union employees. Additionally, the non-union medical plan was terminated as of December 31, 2018. The plan split and termination are reflected in the year-end valuation with $5.8 million of prior service cost credit recorded to AOCI. During the years ended December 30, 2018 and December 31, 2017 , $4.1 million and $1.7 million , respectively, was amortized as a credit to net periodic benefit cost (credit) and recorded in other non-operating income in the Consolidated Statement of Income. Amounts recognized in Tribune’s Consolidated Balance Sheets for other postretirement plans consisted of (in thousands): December 30, 2018 December 31, 2017 Liabilities: Employee compensation and benefits $ (112 ) $ (881 ) Pension and postretirement benefits payable (920 ) (850 ) Total liabilities $ (1,032 ) $ (1,731 ) Accumulated other comprehensive income: Unrecognized prior service credit (cost), net of tax $ (344 ) $ 7,950 Unrecognized net actuarial gains (losses), net of tax 45 1,970 Total accumulated other comprehensive income $ (299 ) $ 9,920 The components of net periodic benefit cost (credit) for the Company’s other postretirement plans were as follows (in thousands): Year Ended December 30, 2018 December 31, 2017 December 25, 2016 Affected Line Items in the Consolidated Statements of Income Service cost $ 13 $ 11 $ 6 Compensation Interest cost 37 189 205 Other non-operating income Amortization of gain (2,621 ) (553 ) — Other non-operating income Amortization of prior service credits (10,534 ) (2,745 ) (470 ) Other non-operating income Net periodic benefit cost (credit) $ (13,105 ) $ (3,098 ) $ (259 ) Assumptions —The weighted average assumptions used to determine other postretirement benefit obligations are as follows: December 30, 2018 December 31, 2017 Discount rate 4.23 % 2.47 % The weighted average assumptions used to determine net periodic benefit cost are as follows: December 30, 2018 December 31, 2017 December 25, 2016 Discount rate 2.47 % 3.23 % 3.23 % For purposes of measuring postretirement health care costs for the year ended December 30, 2018 , Tribune assumed a 7.8% annual rate of increase in the per capita cost of covered health care benefits. The rate was assumed to increase to 7.5% in 2019 and decrease gradually to 4.5% for 2029 and remain at that level thereafter. For purposes of measuring postretirement health care obligations at December 30, 2018 , Tribune assumed a 7.8% annual rate of increase in the per capita cost of covered health care benefits. The rate was assumed to decrease gradually to 4.5% for 2030 and remain at that level thereafter. Assumed health care cost trend rates have a significant effect on the amounts reported for health care plans. As of December 30, 2018 , a 1% change in assumed health care cost trend rates would have an immaterial effect on Tribune’s post retirement benefits service and interest cost and the following effect on Tribune’s projected benefit obligation (in thousands): 1% Increase 1% Decrease Projected benefit obligation $ 48 $ 44 Expected Future Benefit Payments —Benefit payments expected to be paid under other postretirement benefit plans are summarized below (in thousands): 2019 $ 114 2020 86 2021 69 2022 77 2023 84 2024-2026 472 Employees’ Defined Contribution Plan —The Company sponsors defined contribution plans that were established effective June 13, 2014. The defined contribution plans cover substantially all full-time employees of the Company. Participants may elect to contribute a portion of their pretax compensation as provided by the plans and Internal Revenue Service (“IRS”) regulations. The maximum pretax contribution an employee can make is 100% of his or her annual eligible compensation (less required withholdings and deductions) up to the statutory limit which was $18,500 for 2018. The Company matches contributions to its defined contribution plan at a rate of 100% of salary deferrals for the first 2% of compensation and 50% of salary deferrals that exceed 2% of compensation up to 6% of compensation for each participating employee. The Company’s contributions to its defined contribution plans totaled $8.1 million , $8.5 million and $9.0 million in the years ended December 30, 2018 , December 31, 2017 and December 25, 2016 , respectively. Multiemployer Pension Plans —The Company contributes to a number of multiemployer defined benefit pension plans under the terms of collective-bargaining agreements that cover certain of the Company’s union-represented employees. The risks of participating in these multiemployer plans are different from single-employer plans in that assets contributed are pooled and may be used to provide benefits to employees of other participating employers. If a participating employer withdraws from or otherwise ceases to contribute to the plan, the unfunded obligations of the plan may be borne by the remaining participating employers. Alternatively, if Tribune chooses to stop participating in one of its multiemployer plans, it may incur a withdrawal liability based on its actuarially determined share of the unfunded status of the plan. The Company’s participation in these multiemployer pension plans at December 30, 2018 , December 31, 2017 and December 25, 2016 , is outlined in the table below. Unless otherwise noted, the most recent Pension Protection Act (“PPA”) Zone Status available in 2018 and 2017 is for the plan’s year-end at December 31, 2017 and December 25, 2016 , respectively. The PPA Zone Status is based on information that Tribune received from the plan and is certified by the plan’s actuary. Among other factors, plans in the Critical and Declining Zone are generally less than 65 percent funded and projected to become insolvent within 20 years; plans in the Critical Zone are generally less than 65 percent funded (but not projected to become insolvent within 20 years), plans in the Endangered Zone are less than 80 percent but greater than 65 percent funded, and plans in the Healthy Zone are at least 80 percent funded (as determined in accordance with the PPA). The “FIP/RP Status Pending/Implemented” column indicates plans for which a financial improvement plan (“FIP”) or a rehabilitation plan (“RP”) is either pending or has been implemented. (in thousands) EIN/Pension Plan Number PPA Zone Status FIP/RP Status Pending/ Implemented Tribune Contributions Surcharge Imposed Expiration Dates of Collective Bargaining Agreements Pension Fund 2018 2017 2018 2017 2016 GCIU—Employer Retirement Benefit Plan 91-6024903 Critical and declining Critical and declining Implemented $ 637 $ 781 $ 858 Yes (1) May 31, 2017 to April 30, 2018 (1) Chicago Newspaper Publishers Drivers' Union Pension Plan 36-6019539 Critical and declining Critical and declining Implemented 3,568 3,607 3,244 No June 14, 2021 Truck Drivers and Helpers Local No. 355 Pension Plan 52-6043608 Healthy Healthy Implemented 152 134 147 No Dec. 31, 2017 to April 30, 2018 (2) Newspaper and Mail Deliverers' - Publishers' Pension Fund 13-6122251 Healthy Healthy N/A 787 259 — No January 1, 2021 Pressmen's Publishers' Pension Fund 13-6121627 Healthy Healthy N/A 430 134 — No July 11, 2020 Paper Handlers' - Publishers' Pension Fund 13-6104795 Critical and declining Critical and declining Implemented 53 19 — No May, 11, 2016 IAM National Pension Fund, National Pension Plan 51-6031295 Healthy Healthy N/A 428 458 406 No March 31, 2020 CWA/ITU Negotiated Pension Plan 13-6212879 Critical and declining Critical and declining Implemented 252 135 100 No March 31, 2017 to July 31, 2017 (3) Pension Hospitalization & Benefit Plan of the Electrical Industry - Pension Trust Account 13-6123601 Healthy Healthy N/A 428 146 — No April 30, 2020 $ 6,735 $ 5,673 $ 4,755 (1) Tribune is party to two collective bargaining agreements that require contributions to the GCIU—Employer Retirement Benefit Plan, one of which expired May 31, 2017 and the other April 30, 2018. (2) The collective bargaining agreement expired on June 14, 2016. The parties are operating under the terms of this agreement while the terms of a successor collective bargaining agreement are negotiated. (3) The Company is party to two collective bargaining agreements requiring contributions to this plan, New York Mailers Union No. 6 which expired March 31, 2017 and New York Typographical Union (Control Room) which expired July 31, 2017. For the plan years ended December 31, 2017 and December 25, 2016 , Tribune Company was listed in the Chicago Newspaper Publishers Drivers’ Union Pension Plan’s (the “Drivers’ Plan”) Form 5500 as providing more than five percent of the total contributions for the plan. In addition, Chicago Tribune Company was listed in the GCIU Employer Retirement Benefit Plan’s (the “GCIU Plan”) Form 5500 as contributing more than five percent of the total contributions to the plan for the plan year ended December 31, 2017 , Daily News L.P. was listed in the Newspaper and Mail Deliverer’s Publishers’ Pension Fund’s Form 5500 as contributing more than five percent of the total contributions to the plan for the plan year ended December 31, 2017 , and the New York Daily News was listed in the Pressman’s Publishers Pension Fund and the Paper Handlers’ Publishers’ Pension Fund Form 5500s as contributing more than five percent of the total contributions to the plans for the plan year ended December 31, 2017 . The Company did not provide more than five percent of the total contributions for any of the other multiemployer pension plans in which it participated in those years. At the date the financial statements were issued, Forms 5500 were not available for the plan years ending in 2018 . On March 31, 2010, the Drivers’ Plan was certified by its actuary to be in critical status for the plan year beginning January 1, 2010. As a result, the trustees of the Drivers’ Plan were required to adopt and implement a rehabilitation plan as of January 1, 2011 designed to enable the Drivers’ Plan to cease being in critical status within the period of time stipulated by the IRC. The terms of the rehabilitation plan adopted by the trustees require Tribune to make increased contributions beginning on January 1, 2011 through December 31, 2025, and the trustees of the Drivers’ Plan projected that it would emerge from critical status on January 1, 2026. As of its 2017 plan year, the actuary for the Drivers’ Plan certified the plan to be in critical and declining status with projected insolvency in 2026. During 2018, the Board of Trustees of the Drivers’ Plan agreed to a plan merger with the Teamsters Local Union No. 727 Pension Fund. In contemplation of the merger, on December 13, 2018, the Drivers Plan adopted an amendment to its prior rehabilitation plan. Under the amended rehabilitation plan, the Company will make future contributions of $68.4 million paid over seven years regardless of whether the merger is consummated. The merger agreement has been approved by both unions and is awaiting approval by the Pension Benefit Guaranty Corporation (“PBGC”). The effective date of the merger is the later of April 1, 2019, or 30 days after the PBGC approval. In addition to the committed future contributions under the amended rehabilitation plan, the Company’s funding obligation will be subject to change based on a number of factors, including the outcome of collective bargaining with the unions, actual returns on plan assets as compared to assumed returns, actions taken by trustees who manage the plan, changes in the number of plan participants, changes in the rate used for discounting future benefit obligations, as well as changes in legislation or regulations impacting funding and payment obligations. In 2009, the GCIU Plan was certified by its actuary to be in critical status (within the meaning of section 432 of the IRC) as of its plan year beginning January 1, 2009. As a result, the trustees of the GCIU Plan implemented a rehabilitation plan on November 1, 2009 and amended it in May 2012 to cease the plan’s critical status within the period of time stipulated by the IRC. However, the GCIU Plan was unable to adopt a rehabilitation plan that would enable the GCIU Plan to emerge from critical status and avoid insolvency using reasonable assumptions. Therefore, the GCIU Plan adopted a rehabilitation plan that reflects reasonable measures to forestall insolvency. As of its 2017 plan year, the GCIU Plan has been certified by its actuary to be in critical and declining status with projected insolvency in 2030. As of December 30, 2018, assuming Tribune’s contributions from January 1, 2019 through the projected insolvency date of 2027, it is estimated that Tribune’s contributions to the plan will total $6.5 million , based on the actuarial assumptions utilized to develop the rehabilitation plan and assuming Tribune’s staffing levels as of December 30, 2018 remain unchanged. The funding obligation is subject to change based on a number of factors, including the outcome of collective bargaining with the unions, actual returns on plan assets as compared to assumed returns, actions taken by trustees who manage the plan, changes in the number of plan participants, changes in the rate used for discounting future benefit obligations, as well as changes in legislation or regulations impacting funding and payment obligations. In 2010, the CWA/ITU Negotiated Pension Plan was certified by its actuary to be in critical status (within the meaning of section 432 of the IRC) as of its plan year beginning January 1, 2010. As a result, the trustees of the CWA/ITU Negotiated Pension Plan implemented a rehabilitation plan on March 8, 2010. However, the CWA/ITU Negotiated Pension Plan was unable to adopt a rehabilitation plan that would enable the CWA/ITU Negotiated Pension Plan to emerge from critical status and avoid insolvency using reasonable assumptions. Therefore, the CWA/ITU Negotiated Pension Plan adopted a rehabilitation plan that reflects reasonable measures to forestall insolvency. As of its 2017 plan year, the CWA/ITU Negotiated Pension Plan has been certified by its actuary to be in critical and declining status with projected insolvency in 2030. As of December 30, 2018, assuming Tribune’s contributions from January 1, 2019 through the projected insolvency date of 2030, it is estimated that Tribune’s contributions to the plan will total $1.7 million , based on the actuarial assumptions utilized to develop the rehabilitation plan and assuming Tribune’s staffing levels as of December 30, 2018 remain unchanged. The funding obligation is subject to change based on a number of factors, including the outcome of collective bargaining with the unions, actual returns on plan assets as compared to assumed returns, actions taken by trustees who manage the plan, changes in the number of plan participants, changes in the rate used for discounting future benefit obligations, as well as changes in legislation or regulations impacting funding and payment obligations. In 2016, the Paper Handlers' - Publishers' Pension Fund was certified by its actuary to be in critical status (within the meaning of section 432 of the IRC) as of its plan year beginning January 1, 2010. As a result, the trustees of the Paper Handlers' - Publishers' Pension Fund implemented a rehabilitation plan on February 25, 2016. As of its 2017 plan year, the Paper Handlers' - Publishers' Pension Fund has been certified by its actuary to be in critical and declining status with projected insolvency in 2027 . As of December 30, 2018, assuming Tribune’s contributions from January 1, 2019 through the projected insolvency date of 2027 , it is estimated that Tribune’s contributions to the plan will total $0.5 million , based on the actuarial assumptions utilized to develop the rehabilitation plan and assuming Tribune’s staffing levels as of December 30, 2018 remain unchanged. The funding obligation is subject to change based on a number of factors, including the outcome of collective bargaining with the unions, actual returns on plan assets as compared to assumed returns, actions taken by trustees who manage the plan, changes in the number of plan participants, changes in the rate used for discounting future benefit obligations, as well as changes in legislation or regulations impacting funding and payment obligations. |
