Document and Entity Information
Document and Entity Information Document - USD ($) | 9 Months Ended | ||
Jun. 28, 2015 | Jul. 31, 2015 | Mar. 30, 2014 | |
Entity Information [Line Items] | |||
Entity Registrant Name | Lee Enterprises, Inc. | ||
Entity Central Index Key | 58,361 | ||
Current Fiscal Year End Date | --09-27 | ||
Entity Filer Category | Accelerated Filer | ||
Document Type | 10-Q | ||
Document Period End Date | Jun. 28, 2015 | ||
Document Fiscal Year Focus | 2,015 | ||
Document Fiscal Period Focus | Q3 | ||
Amendment Flag | false | ||
Entity Common Stock, Shares Outstanding | 54,551,666 | ||
Entity Well-known Seasoned Issuer | No | ||
Entity Voluntary Filers | No | ||
Entity Current Reporting Status | Yes | ||
Entity Public Float | $ 224,932,644 |
Consolidated Balance Sheet
Consolidated Balance Sheet - USD ($) $ in Thousands | Jun. 28, 2015 | Sep. 28, 2014 |
Current assets: | ||
Cash and cash equivalents | $ 18,904 | $ 16,704 |
Accounts receivable, net | 57,712 | 62,343 |
Income taxes receivable | 48 | 620 |
Inventory | 4,737 | 6,655 |
Deferred income taxes | 1,229 | 1,228 |
Other | 9,275 | 8,585 |
Total current assets | 91,905 | 96,135 |
Investments: | ||
Associated companies | 35,791 | 37,790 |
Other | 10,177 | 10,661 |
Total investments | 45,968 | 48,451 |
Property and equipment: | ||
Land and improvements | 23,211 | 23,645 |
Buildings and improvements | 180,611 | 180,570 |
Equipment | 289,814 | 292,209 |
Construction in process | 3,321 | 4,548 |
Property, plant and equipment, gross | 496,957 | 500,972 |
Less accumulated depreciation | 348,442 | 343,601 |
Property and equipment, net | 148,515 | 157,371 |
Goodwill | 243,729 | 243,729 |
Other intangible assets, net | 192,383 | 212,657 |
Postretirement assets, net | 15,211 | 14,136 |
Debt financing costs and other | 34,887 | 38,796 |
Total assets | 772,598 | 811,275 |
Current liabilities: | ||
Current maturities of long-term debt | 32,900 | 31,400 |
Accounts payable | 18,530 | 27,245 |
Compensation and other accrued liabilities | 24,109 | 24,348 |
Accrued Interest | 14,184 | 4,812 |
Unearned revenue | 30,322 | 30,903 |
Total current liabilities | 120,045 | 118,708 |
Long-term debt, net of current maturities | 712,100 | 773,350 |
Pension obligations | 47,540 | 50,170 |
Postretirement and postemployment benefit obligations | 10,582 | 10,359 |
Deferred income taxes | 22,618 | 14,766 |
Income taxes payable | 5,689 | 5,097 |
Warrants and other | 16,519 | 16,369 |
Total liabilities | 935,093 | 988,819 |
Stockholders' equity (deficit): | ||
Serial convertible preferred stock, no par value; authorized 500 shares; none issued | 0 | 0 |
Common Stock, Number of Shares, Par Value and Other Disclosures [Abstract] | ||
Additional paid-in capital | 247,408 | 245,323 |
Accumulated deficit | (400,847) | (414,282) |
Accumulated other comprehensive income | (10,407) | (9,831) |
Total stockholders' deficit | (163,299) | (178,253) |
Non-controlling interests | 804 | 709 |
Total deficit | (162,495) | (177,544) |
Total liabilities and deficit | 772,598 | 811,275 |
Common Stock [Member] | ||
Stockholders' equity (deficit): | ||
Common Stock | 547 | 537 |
Common Class B [Member] | ||
Stockholders' equity (deficit): | ||
Common Stock | $ 0 | $ 0 |
Consolidated Balance Sheet Pare
Consolidated Balance Sheet Parentheticals (Parentheticals) - $ / shares | Jun. 28, 2015 | Sep. 28, 2014 |
Preferred Stock, Par or Stated Value Per Share | $ 0 | $ 0 |
Preferred Stock, Shares Authorized | 500,000 | 500,000 |
Preferred Stock, Shares Issued | 0 | 0 |
Common Class A [Member] | ||
Common Stock, Par or Stated Value Per Share | $ 0.01 | $ 0.01 |
Common Stock, Shares Authorized | 120,000,000 | 120,000,000 |
Common Stock, Shares, Issued | 54,749,000 | 53,747,000 |
Common Class B [Member] | ||
Common Stock, Par or Stated Value Per Share | $ 2 | $ 2 |
Common Stock, Shares Authorized | 30,000,000 | 30,000,000 |
Common Stock, Shares, Issued | 0 | 0 |
Consolidated Statements of Oper
Consolidated Statements of Operations and Comprehensive Income (Loss) - USD ($) | 3 Months Ended | 9 Months Ended | ||
Jun. 28, 2015 | Jun. 29, 2014 | Jun. 28, 2015 | Jun. 29, 2014 | |
Operating revenue: | ||||
Advertising and marketing services | $ 100,490,000 | $ 110,284,000 | $ 313,632,000 | $ 335,394,000 |
Subscription | 47,394,000 | 43,339,000 | 145,904,000 | 130,744,000 |
Other | 9,662,000 | 9,502,000 | 29,693,000 | 28,465,000 |
Total operating revenue | 157,546,000 | 163,125,000 | 489,229,000 | 494,603,000 |
Operating expenses: | ||||
Compensation | 58,442,000 | 60,330,000 | 181,615,000 | 181,543,000 |
Newsprint and ink | 7,421,000 | 9,224,000 | 23,928,000 | 29,120,000 |
Other operating expenses | 55,405,000 | 53,840,000 | 170,426,000 | 161,708,000 |
Depreciation | 4,559,000 | 5,293,000 | 13,860,000 | 15,700,000 |
Amortization of intangible assets | 6,836,000 | 6,901,000 | 20,597,000 | 20,710,000 |
Loss (gain) on sales of assets, net | 686,000 | 9,000 | 434,000 | (1,622,000) |
Impairment of goodwill and other assets | 0 | 336,000 | 0 | 336,000 |
Workforce adjustments | 1,057,000 | 419,000 | 1,908,000 | 925,000 |
Total operating expenses | 134,406,000 | 136,352,000 | 412,768,000 | 408,420,000 |
Equity in earnings of associated companies | 1,705,000 | 1,836,000 | 6,114,000 | 6,348,000 |
Operating income | 24,845,000 | 28,609,000 | 82,575,000 | 92,531,000 |
Non-operating income (expense): | ||||
Financial income | 79,000 | 85,000 | 258,000 | 306,000 |
Financial expense | (18,121,000) | (19,654,000) | (55,314,000) | (61,033,000) |
Debt financing costs and amortization | (1,445,000) | (21,732,000) | (4,040,000) | (21,935,000) |
Other, net | (1,082,000) | (1,701,000) | 58,000 | (1,579,000) |
Total non-operating expense, net | (20,569,000) | (43,002,000) | (59,038,000) | (84,241,000) |
Income (loss) before income taxes | 4,276,000 | (14,393,000) | 23,537,000 | 8,290,000 |
Income tax expense (benefit) | 2,141,000 | (4,882,000) | 9,353,000 | 3,995,000 |
Net income (loss) | 2,135,000 | (9,511,000) | 14,184,000 | 4,295,000 |
Net income attributable to non-controlling interests | (253,000) | (235,000) | (749,000) | (663,000) |
Income (loss) attributable to Lee Enterprises, Incorporated | 1,882,000 | (9,746,000) | 13,435,000 | 3,632,000 |
Other comprehensive income (loss), net of income taxes | (192,000) | (441,000) | (576,000) | (1,324,000) |
Comprehensive income (loss) attributable to Lee Enterprises, Incorporated | $ 1,690,000 | $ (10,187,000) | $ 12,859,000 | $ 2,308,000 |
Basic: | ||||
Earnings Per Share, Basic | $ 0.04 | $ (0.19) | $ 0.26 | $ 0.07 |
Diluted: | ||||
Diluted | $ 0.03 | $ (0.19) | $ 0.25 | $ 0.07 |
Statement of Cash Flows
Statement of Cash Flows - USD ($) $ in Thousands | 9 Months Ended | |
Jun. 28, 2015 | Jun. 29, 2014 | |
Net income (loss) | $ 14,184 | $ 4,295 |
Adjustments to reconcile net income from continuing operations to net cash provided by operating activities of continuing operations: | ||
Depreciation and amortization | 34,457 | 36,410 |
Loss (gain) on sales of assets, net | 434 | (1,622) |
Impairment of goodwill and other assets | 0 | 336 |
Amortization (accretion) of debt present value adjustment | 0 | 2,394 |
Stock compensation expense | 1,645 | 1,081 |
Distributions greater than earnings of MNI | 1,699 | 1,518 |
Deferred income tax expense (benefit) | 8,251 | 281 |
Debt financing costs | 4,040 | 21,935 |
Changes in operating assets and liabilities: | ||
Decrease in receivables | 4,631 | 1,638 |
Decrease (increase) in inventories and other | 596 | (502) |
Decrease (increase) in accounts payable, compensation and other accrued liabilities and unearned revenue | (163) | 1,097 |
Decrease in pension, postretirement and postemployment benefit obligations | (4,458) | (4,858) |
Change in income taxes receivable or payable | 1,164 | 7,324 |
Other, net | (331) | (1,744) |
Net cash provided by operating activities of continuing operations | 66,149 | 69,583 |
Cash provided by (required for) investing activities of continuing operations: | ||
Purchases of property and equipment | (7,686) | (8,204) |
Decrease in restricted cash | 441 | 0 |
Proceeds from sales of assets | 3,341 | 2,192 |
Distributions greater (less) than current earnings of TNI | 300 | (211) |
Other, net | (323) | 0 |
Net Ccsh provided by investing activities of continuing operations | (3,927) | (6,223) |
Cash provided by (required for) financing activities of continuing operations: | ||
Proceeds from long-term debt | 5,000 | 800,000 |
Payments on long-term debt | (64,750) | (832,500) |
Debt financing and reorganization costs paid | (477) | (31,276) |
Common stock transactions net | 205 | 612 |
Net cash required for financing activities of continuing operations | (60,022) | (63,164) |
Net increase in cash and cash equivalents | 2,200 | 196 |
Cash and cash equivalents: | ||
Beginning of period | 16,704 | $ 17,562 |
End of period | $ 18,904 |
Basis of Presentation
Basis of Presentation | 9 Months Ended |
Jun. 28, 2015 | |
Basis of Presentation [Abstract] | |
Organization Consolidation and Presentation of Financial Statements Disclosure [Text Block] | BASIS OF PRESENTATION The accompanying unaudited, interim, Consolidated Financial Statements included herein have been prepared pursuant to the rules and regulations of the Securities and Exchange Commission for quarterly reports. In the opinion of management, these financial statements contain all adjustments (consisting of only normal recurring items) necessary to present fairly the financial position of Lee Enterprises, Incorporated and subsidiaries (the “Company”) as of June 28, 2015 and their results of operations and cash flows for the periods presented. The Consolidated Financial Statements should be read in conjunction with the Consolidated Financial Statements and Notes thereto included in the Company's 2014 Annual Report on Form 10-K. Because of seasonal and other factors, the results of operations for the 13 weeks and 39 weeks ended June 28, 2015 are not necessarily indicative of the results to be expected for the full year. References to “we”, “our”, “us” and the like throughout the Consolidated Financial Statements refer to the Company. References to “2015”, “2014” and the like refer to the fiscal years ended the last Sunday in September. The Consolidated Financial Statements include the accounts of our subsidiaries, all of which are wholly-owned, except for our 50% interest in TNI Partners (“TNI”), 50% interest in Madison Newspapers, Inc. (“MNI”) and 82.5% interest in INN Partners, L.C. ("TownNews"). Investments in TNI and MNI are accounted for using the equity method and are reported at cost, plus our share of undistributed earnings since acquisition less, for TNI, amortization of intangible assets. |
Investments in Associated Compa
Investments in Associated Companies | 9 Months Ended |
Jun. 28, 2015 | |
Investments In Associated Companies [Abstract] | |
Equity Method Investments Disclosure [Text Block] | INVESTMENTS IN ASSOCIATED COMPANIES TNI Partners In Tucson, Arizona, TNI, acting as agent for our subsidiary, Star Publishing Company (“Star Publishing”), and Citizen Publishing Company (“Citizen”), a subsidiary of Gannett Co. Inc., is responsible for printing, delivery, advertising, and subscription activities of the Arizona Daily Star as well as the related digital platforms and specialty publications. TNI collects all receipts and income and pays substantially all operating expenses incident to the partnership's operations and publication of the newspapers and other media. Income or loss of TNI (before income taxes) is allocated equally to Star Publishing and Citizen. Summarized results of TNI are as follows: 13 Weeks Ended 39 Weeks Ended (Thousands of Dollars) June 28 June 29 June 28 June 29 Operating revenue 13,063 13,750 43,035 44,888 Operating expenses, excluding workforce adjustments, depreciation and amortization 10,936 11,449 34,783 36,116 Workforce adjustments — — — (87 ) Operating income 2,127 2,301 8,252 8,859 Company's 50% share of operating income 1,064 1,150 4,127 4,429 Less amortization of intangible assets 105 104 314 313 Equity in earnings of TNI 959 1,046 3,813 4,116 Star Publishing's 50% share of TNI depreciation and certain general and administrative expenses (income) associated with its share of the operation and administration of TNI are reported as operating expenses (benefit) in our Consolidated Statements of Operations and Comprehensive Income. These amoun ts totaled $ 45,000 and $ (17,000) in the 13 weeks ended June 28, 2015 and June 29, 2014 , respectively, and totaled $ (153,000) and $ (51,000) in the 39 weeks ended June 28, 2015 and June 29, 2014 , respectively. Annual amortization of intangible assets is estimated to be $418,000 in each of the 52 week periods ending June 2016, June 2017, June 2018 and the 53 week period ending June 2019 and $314,000 in the 52 week period ending June 2020. Madison Newspapers, Inc. We have a 50% ownership interest in MNI, which publishes daily and Sunday newspapers, and other publications in Madison, Wisconsin, and other Wisconsin locations, and operates their related digital platforms. Net income or loss of MNI (after income taxes) is allocated equally to us and The Capital Times Company (“TCT”). MNI conducts its business under the trade name Capital Newspapers. Summarized results of MNI are as follows: 13 Weeks Ended 39 Weeks Ended (Thousands of Dollars) June 28 June 29 June 28 June 29 Operating revenue 16,580 17,278 51,258 50,710 Operating expenses, excluding workforce adjustments, depreciation and amortization 13,518 14,390 42,328 42,246 Workforce adjustments 261 15 318 244 Depreciation and amortization 463 384 1,390 1,179 Operating income 2,338 2,489 7,222 7,041 Net income 1,491 1,579 4,603 4,464 Equity in earnings of MNI 746 790 2,301 2,232 |
Goodwill and other Intangible A
Goodwill and other Intangible Assets | 9 Months Ended |
Jun. 28, 2015 | |
Goodwill And Other Intangible Assets [Abstract] | |
Goodwill and Intangible Assets Disclosure [Text Block] | GOODWILL AND OTHER INTANGIBLE ASSETS Changes in the carrying amount of goodwill are as follows: 39 Weeks Ended (Thousands of Dollars) June 28 Goodwill, gross amount 1,532,458 Accumulated impairment losses (1,288,729 ) Goodwill, beginning of period 243,729 Goodwill, end of period 243,729 Identified intangible assets consist of the following: (Thousands of Dollars) June 28 September 28 Nonamortized intangible assets: Mastheads 25,102 25,102 Amortizable intangible assets: Customer and newspaper subscriber lists 687,055 686,732 Less accumulated amortization 519,774 499,178 167,281 187,554 Noncompete and consulting agreements 28,524 28,524 Less accumulated amortization 28,524 28,523 — 1 Other intangible assets, net 192,383 212,657 Annual amortization of intangible assets for the 52 week periods ending June 2016, June 2017, June 2018, the 53 week period ending June 2019 and the 52 week period ending June 2020, is estimated to be $26,334,000 , $25,166,000 , $18,685,000 , $16,321,000 and $15,249,000 , respectively. |
Debt
Debt | 9 Months Ended |
Jun. 28, 2015 | |
Debt [Abstract] | |
Debt Disclosure [Text Block] | DEBT In January 2012, in conjunction with the effectiveness of our plan of reorganization (the "Plan") under Chapter 11 of the U.S. Bankruptcy Code, we refinanced all of our debt. The Plan refinanced our then-existing credit agreement and extended the April 2012 maturity in a structure of first-priority and second-priority lien debt with the existing lenders. We also amended the Pulitzer Notes, as discussed more fully below (and certain capitalized terms used below defined), and extended the April 2012 maturity with the existing Noteholders. In May 2013, we again refinanced the $94,000,000 remaining balance of the Pulitzer Notes (the “New Pulitzer Notes”). On March 31, 2014, we completed a comprehensive refinancing of our debt, exclusive of the New Pulitzer Notes (the “2014 Refinancing”), which included the following: • $400,000,000 aggregate principal amount of 9.5% Senior Secured Notes (the “Notes”), pursuant to an Indenture dated as of March 31, 2014 (the “Indenture”) among the Company, certain subsidiaries party thereto from time to time (the “Subsidiary Guarantors”), U.S. Bank National Association, as Trustee, and Deutsche Bank Trust Company Americas, as Collateral Agent (the "Notes Collateral Agent"); • $250,000,000 first lien term loan (the "1 st Lien Term Loan") and $40,000,000 revolving facility (the "Revolving Facility") under a First Lien Credit Agreement dated as of March 31, 2014 (together the “1 st Lien Credit Facility”) among the Company, the lenders party thereto from time to time (the “1 st Lien Lenders”), and JPMorgan Chase Bank, N.A., as Administrative Agent and Collateral Agent (the "1st Lien Collateral Agent"); and • $150,000,000 second lien term loan under a Second Lien Loan Agreement dated as of March 31, 2014 (the “2 nd Lien Term Loan”) among the Company, the lenders party thereto from time to time (the “2 nd Lien Lenders”), and Wilmington Trust, National Association, as Administrative Agent and Collateral Agent (the "2 nd Lien Collateral Agent"). The Notes, 1 st Lien Credit Facility and 2 nd Lien Term Loan enabled us to repay in full, including accrued interest, and terminate, on March 31, 2014: (i) the remaining principal balance of $593,000,000 under our previous 1 st lien agreement, and related subsidiary guaranty, security and pledge agreements, intercompany subordination and intercreditor agreements; and (ii) the remaining principal balance of $175,000,000 under our previous 2 nd lien agreement, and related subsidiary guaranty, security and pledge agreements, intercompany subordination and intercreditor agreements. We also used the proceeds of the refinancing to pay fees and expenses totaling $30,931,000 related to the 2014 Refinancing. On June 25, 2015 (the "Pulitzer Debt Satisfaction Date"), we repaid the remaining balance of the New Pulitzer Notes triggering certain changes to the security and collateral of our remaining debt. The effects of such changes are discussed more fully below. Notes The Notes are senior secured obligations of the Company and mature on March 15, 2022. The Notes were sold pursuant to Rule 144A and Regulation S under the Securities Act of 1933, as amended. Interest The Notes require payment of interest semiannually on March 15 and September 15 of each year, at a fixed annual rate of 9.5% . Redemption We may redeem some, or all, of the principal amount of the Notes at any time on or after March 15, 2018, subject to call premiums as follows: Period Beginning Percentage of Principal Amount March 15, 2018 104.75 March 15, 2019 102.375 March 15, 2020 100 We may also redeem up to 35% of the Notes prior to March 15, 2017 at 109.5% of the principal amount using the proceeds of certain future equity offerings. If we sell certain of our assets or experience specific kinds of changes of control, we must, subject to certain exceptions, offer to purchase the Notes. Any redemption of the Notes must also satisfy any accrued and unpaid interest thereon. Security The Notes are fully and unconditionally guaranteed on a first-priority basis by each of the Company's material domestic subsidiaries in which the Company holds a direct or indirect interest of more than 50% and which guarantee indebtedness for borrowed money, including the 1 st Lien Credit Facility (the "Lee Legacy Assignors"), excluding MNI, Pulitzer Inc. ("Pulitzer") and its subsidiaries (collectively, the "Pulitzer Subsidiaries") and TNI. Following the Pulitzer Debt Satisfaction Date, the Notes are also fully and unconditionally guaranteed, on a second-priority basis, by Pulitzer and each Pulitzer Subsidiary that guarantees the indebtedness under the 2 nd Lien Term Loan or other borrowings incurred by the Company or any subsidiary guarantor (collectively, the "Pulitzer Assignors"). The Notes and the subsidiary guarantees are secured, subject to certain exceptions, priorities and limitations in the various agreements, by a lien on all property and assets of the Lee Legacy Assignors (the “Lee Legacy Collateral”), other than the capital stock of MNI and any property and assets of MNI, on a first-priority basis, equally and ratably with all of the Lee Legacy Assignors' existing and future obligations under the 1 st Lien Credit Facility, pursuant to a Security Agreement dated as of March 31, 2014 (the “Notes Security Agreement”) among the Lee Legacy Assignors and the Notes Collateral Agent. Also, the Notes are secured, subject to certain exceptions, priorities and limitations in the various agreements, by first-priority security interests in the capital stock of, and other equity interests owned by, the Lee Legacy Assignors pursuant to the Notes Security Agreement. Certain of the Lee Legacy Assignors, separately, have granted first-priority lien mortgages or deeds of trust, covering their material real estate and improvements for the benefit of the holders of the Notes. Following the Pulitzer Debt Satisfaction Date, the Notes and the subsidiary guarantees are also secured, subject to permitted liens, by a second-priority security interest in the property and assets of the Pulitzer Assignors other than assets of or used in the operations or business of TNI (the "Excluded TNI Assets")(collectively, the “Pulitzer Collateral”) owned by each of the Pulitzer Assignors that become subsidiary guarantors, equally and ratably with all of the Pulitzer Assignors' existing and future obligations under the 1 st Lien Credit Facility and certain other indebtedness for borrowed money incurred by the Company or any subsidiary guarantor. Also, the Notes are secured, subject to certain exceptions, priorities, and limitations in the various agreements, by second-priority security interests in the capital stock of, and other equity interests in, the Pulitzer Assignors and Star Publishing’s interest in TNI. Certain Pulitzer Assignors also granted second-priority mortgages or deeds of trust for the benefit of the holders of the Notes, subject to all relevant terms and conditions of the applicable intercreditor agreements, covering the Pulitzer Assignors’ material real estate and improvements. The rights of the Collateral Agents with respect to the Lee Legacy Collateral and Pulitzer Collateral are subject to: • A Pari Passu Intercreditor Agreement dated as of March 31, 2014 (the “Pari Passu Intercreditor Agreement”) among the Company, the other Grantors party thereto, JPMorgan Chase Bank, N.A., U.S. Bank National Association and Deutsche Bank Trust Company Americas; • A Pulitzer Pari Passu Intercreditor Agreement dated as of June 25, 2015 (the "Pulitzer Pari Passu Intercreditor Agreement") among the Company, the other Grantors party thereto, JPMorgan Chase Bank, N.A., U.S. Bank National Association and Deutsche Bank Trust Company Americas; • A Junior Intercreditor Agreement dated as of March 31, 2014 (the “Junior Intercreditor Agreement”) among the Company, the other Grantors party hereto, JPMorgan Chase Bank, N.A., U.S. Bank National Association, Deutsche Bank Trust Company Americas and Wilmington Trust, National Association; and • A Pulitzer Junior Intercreditor Agreement dated as of June 25, 2015 (the “Pulitzer Junior Intercreditor Agreement”) among the Company, Pulitzer, the Pulitzer Subsidiaries, Wilmington Trust, National Association, JPMorgan Chase Bank, N.A., U.S. Bank National Association and Deutsche Bank Trust Company Americas. Covenants and Other Matters The Indenture contains certain of the restrictive covenants in the 1 st Lien Credit Facility, as discussed more fully below, and limitations on our use of the Pulitzer Subsidiaries’ cash flows. However, many of these covenants will cease to apply if the Notes are rated investment grade by either Moody’s Investors Service, Inc. or Standard & Poor’s Ratings Group and there is no default or event of default under the Indenture. 1 st Lien Credit Facility The 1 st Lien Credit Facility consists of the $250,000,000 1 st Lien Term Loan that matures in March 2019 and the $40,000,000 Revolving Facility that matures in December 2018. The Revolving Facility may be used for working capital and general corporate purposes (including letters of credit). At June 28, 2015 , after consideration of letters of credit, we have approximately $32,935,000 available for future use under the Revolving Facility. Interest Interest on the 1 st Lien Term Loan, which has a principal balance of $195,000,000 at June 28, 2015 , accrues, at our option, at either (A) LIBOR plus 6.25% (with a LIBOR floor of 1.0%) or (B) 5.25% plus the highest of (i) the prime rate at the time, (ii) the federal funds rate plus 0.5% , or (iii) one month LIBOR plus 1.0% (with a floor of 2.0% ). Interest is payable quarterly. The 1 st Lien Term Loan was funded with an original issue discount of 2.0%, or $5,000,000 , which is being amortized as interest expense over the life of the 1 st Lien Term Loan. Interest on the Revolving Facility, which has a principal balance of zero at June 28, 2015 , accrues, at our option, at either (A) LIBOR plus 5.5% , or (B) 4.5% plus the highest of (i) the prime rate at the time, (ii) the federal funds rate plus 0.5% , or (iii) one month LIBOR plus 1.0%. Principal Payments Quarterly principal payments of $6,250,000 are required under the 1 st Lien Term Loan, with other payments made based on 90% of excess cash flow of Lee Legacy ("Lee Legacy Excess Cash Flow), as defined, or from proceeds of asset sales, as defined, from our subsidiaries other than the Pulitzer Subsidiaries. We may voluntarily prepay principal amounts outstanding or reduce commitments under the 1 st Lien Credit Facility at any time without premium or penalty, upon proper notice and subject to certain limitations as to minimum amounts of prepayments. Following the Pulitzer Debt Satisfaction Date, the excess cash flow of Pulitzer, as defined ("Pulitzer Excess Cash Flow"), may be used to pay down the 1 st Lien Term Loan if not accepted by the 2nd Lien Term Loan lenders, as discussed more fully below under the heading "2 nd Lien Term Loan". 2015 payments made, or required to be made for the remainder of the year, under the 1 st Lien Term Loan are summarized as follows: 13 Weeks Ended 13 Weeks Ending (Thousands of Dollars) December 28 March 29 June 28 September 27 Mandatory 6,250 6,250 6,250 6,250 Voluntary 5,000 4,000 4,000 — Asset sales — — — — Excess cash flow — — — 7,900 Pulitzer excess cash flow — — — — 11,250 10,250 10,250 14,150 For the 13 weeks ended June 28, 2015 the Lee Legacy Excess Cash Flow totaled $7,900,000 . This excess cash flow payment is due on or before August 12, 2015. 2014 payments made under the 1 st Lien Term Loan or previous 1 st lien agreement are summarized as follows: 13 Weeks Ended (Thousands of Dollars) December 29 March 30 June 29 September 28 Mandatory 3,000 3,000 6,250 6,250 Voluntary 3,350 5,500 10,750 — Asset sales 150 1,500 — — 1 st Lien Term Loan excess cash flow — — — — 6,500 10,000 17,000 6,250 Security The 1 st Lien Credit Facility is secured, subject to certain priorities and limitations in the various agreements, by perfected security interests in substantially all the assets of the Lee Legacy Assignors, pursuant to a First Lien Guarantee and Collateral Agreement dated as of March 31, 2014 (the “1 st Lien Guarantee and Collateral Agreement”) among the Company, the Subsidiary Guarantors and JPMorgan Chase Bank, N.A. (the "1 st Lien Collateral Agent"), on a first-priority basis, equally and ratably with all of the Company’s and the Subsidiary Guarantors’ existing and future obligations under the Notes. On the Pulitzer Debt Satisfaction Date, the Pulitzer Assignors became a party to the 1 st Lien Guarantee and Collateral Agreement. The Lee Legacy Assignors’ pledged assets include, among other things, equipment, inventory, accounts receivables, depository accounts, intellectual property and certain of their other tangible and intangible assets. Assets of, or used in the operations or business of MNI, and our ownership interest in, MNI are excluded. Under the 1 st Lien Credit Facility, the Lee Legacy Assignors, separately, have granted first-priority lien mortgages or deeds of trust, subject to all relevant terms and conditions of the applicable intercreditor agreements, covering certain real estate and improvements, to the 1 st Lien Lenders (excluding the real estate of Pulitzer, the Pulitzer Subsidiaries, TNI and MNI). The 1 st Lien Credit Facility is also secured by a pledge of interests in all of the capital stock, or any other equity interests, owned by the Lee Legacy Assignors (excluding the capital stock of MNI). Following the Pulitzer Debt Satisfaction Date, the 1 st Lien Credit Facility and the subsidiary guarantees are also secured, subject to permitted liens, by a second - priority lien on the Pulitzer Collateral owned by each of the Pulitzer Assignors, equally and ratably with all of the Company’s and the subsidiary guarantors’ existing and future obligations under the 1 st Lien Credit Facility and certain other indebtedness for borrowed money incurred by the Company or any subsidiary guarantor. Following the Pulitzer Debt Satisfaction Date, the Pulitzer Assignors also granted second-priority lien deeds of trust for the benefit of the 1 st Lien Lenders, subject to all relevant terms and conditions of the applicable intercreditor agreements (referred to below), covering the Pulitzer Subsidiaries’ material real estate and improvements and the Pulitzer Assignors pledged their respective interests in all of the capital stock, or other equity interests, owed by the Pulitzer Assignors on a second-priority basis. The rights of the Collateral Agents with respect to the Lee Legacy Collateral and Pulitzer Collateral are subject to: • The Pari Passu Intercreditor Agreement; • The Pulitzer Pari Passu Intercreditor Agreement; • The Junior Intercreditor Agreement; • The Pulitzer Junior Intercreditor Agreement; and • An Intercompany Subordination Agreement dated as of March 31, 2014 (the “1 st Lien Intercompany Subordination Agreement”) among the Company, Subsidiary Guarantors, Pulitzer, Pulitzer Subsidiaries and JPMorgan Chase Bank, N.A. Covenants and Other Matters The 1 st Lien Credit Facility requires that we comply with certain affirmative and negative covenants customary for financing of this nature, including a maximum total leverage ratio, which is only applicable to the Revolving Facility. The 1 st Lien Credit Facility restricts us from paying dividends on our Common Stock and generally restricts us from repurchasing Common Stock, unless in each case no default shall have occurred and we have satisfied certain financial measurements. Further, the 1 st Lien Credit Facility restricts or limits, among other things, subject to certain exceptions, the ability of the Company and its subsidiaries to: (i) incur indebtedness, (ii) enter into mergers, acquisitions and asset sales, (iii) incur or create liens and (iv) enter into transactions with certain affiliates. The 1 st Lien Credit Facility contains various representations and warranties and may be terminated upon occurrence of certain events of default. The 1 st Lien Credit Facility also contains cross-default provisions tied to the terms of each of the Indenture and 2 nd Lien Term Loan. 2 nd Lien Term Loan The 2 nd Lien Term Loan, which has a balance of $150,000,000 at June 28, 2015 , bears interest at a fixed annual rate of 12.0% , payable quarterly, and matures in December 2022. Principal Payments There are no scheduled mandatory payments required under the 2 nd Lien Term Loan. Under the 2 nd Lien Term Loan, subject to certain other conditions, Pulitzer Excess Cash Flow must be used, (a) prior to March 31, 2017, to make an offer to the 2 nd Lien Lenders (which offer the 2 nd Lien Lenders may accept or reject, if rejected we may use the Pulitzer Excess Cash Flow to prepay amounts under the 1 st Lien Credit Facility), to pay amounts under the 2 nd Lien Term Loan at par and (b) after March 31, 2017, to pay such amounts under the 2 nd Lien Term Loan at par. Pulitzer Excess Cash Flow includes a deduction for interest costs incurred under the 2 nd Lien Term Loan after the Pulitzer Debt Satisfaction Date. In addition, other changes to settlement of certain intercompany costs between the Company and Pulitzer will be affected, with the net result being a reduction in the excess cash flows of Pulitzer from historically reported levels. Subject to certain other conditions in the 2 nd Lien Term Loan, the balance of the 2 nd Lien Term Loan will, at our option, be repaid at par from proceeds from asset sales by Pulitzer or the Pulitzer Subsidiaries. Voluntary payments under the 2 nd Lien Term Loan are otherwise subject to call premiums as follows: Period Beginning Percentage of Principal Amount March 31, 2014 112 March 31, 2017 106 March 31, 2018 103 March 31, 2019 100 Security The 2 nd Lien Term Loan is fully and unconditionally guaranteed on a joint and several first-priority basis by the Pulitzer Assignors, pursuant to a Second Lien Guarantee and Collateral Agreement dated as of March 31, 2014 (the “2 nd Lien Guarantee and Collateral Agreement”) among the Pulitzer Assignors and the 2 nd Lien Collateral Agent. Under the 2 nd Lien Guarantee and Collateral Agreement, the Pulitzer Assignors have granted (i) first-priority security interests, subject to certain priorities and limitations in the various agreements, in the Pulitzer Collateral and (ii) have granted first-priority lien mortgages or deeds of trust covering certain real estate, as collateral for the payment and performance of their obligations under the 2 nd Lien Term Loan. The Pulitzer Collateral is also subject to (i) a first-priority security interest in favor of the 2nd Lien Lenders; and following the Pulitzer Debt Satisfaction Date, (ii) a second-priority security interest in favor of the secured parties under the 1 st Lien Credit Facility and the Notes, as applicable. Also, under the 2 nd Lien Guarantee and Collateral Agreement, the Lee Legacy Assignors have granted (i) second-priority security interests, subject to certain priorities and limitations in the various agreements, in the Lee Legacy Collateral, and (ii) have granted second-priority lien mortgages or deeds of trust covering certain real estate, as collateral for the payment and performance of their obligations under the 2 nd Lien Term Loan. Assets of, or used in the operations or business of, MNI are excluded. The rights of the Collateral Agents are subject to: • The Pari Passu Intercreditor Agreement; • The Pulitzer Pari Passu Intercreditor Agreement; • The Junior Intercreditor Agreement; • The Pulitzer Junior Intercreditor Agreement; and • An Intercompany Subordination Agreement dated as of March 31, 2014 (the “Pulitzer Intercompany Subordination Agreement”) among the Company, the Subsidiary Guarantors, Pulitzer, Pulitzer Subsidiaries and Wilmington Trust, National Association. Covenants and Other Matters The 2 nd Lien Term Loan requires that we comply with certain affirmative and negative covenants customary for financing of this nature, including the negative covenants under the 1 st Lien Credit Facility discussed above. The 2 nd Lien Term Loan contains various representations and warranties and may be terminated upon occurrence of certain events of default. The 2 nd Lien Term Loan also contains cross-default provisions tied to the terms of the Indenture and 1 st Lien Credit Facility. In connection with the 2 nd Lien Term Loan, we entered into a Warrant Agreement dated as of March 31, 2014 (the “Warrant Agreement”) between the Company and Wells Fargo Bank, National Association. Under the Warrant Agreement, certain affiliates or designees of the 2 nd Lien Lenders received on March 31, 2014 their pro rata share of warrants to purchase, in cash, an initial aggregate of 6,000,000 shares of Common Stock, subject to adjustment pursuant to anti-dilution provisions (the “Warrants”). The Warrants represent, when fully exercised, approximately 10.1% of shares of Common Stock outstanding at March 30, 2014 on a fully diluted basis. The exercise price of the Warrants is $4.19 per share. The Warrant Agreement contains a cash settlement provision in the event of a change of control prior to March 31, 2018 as well as other provisions requiring the Warrants be measured at fair value and included in other liabilities in our Consolidated Balance Sheets. We remeasure the fair value of the liability each reporting period, with changes reported in other non-operating income (expense). The initial fair value of the Warrants was $ 16,930,000 . See Note 9. In connection with the issuance of the Warrants, we entered into a Registration Rights Agreement dated as of March 31, 2014 (the “Registration Rights Agreement”). The Registration Rights Agreement requires, among other matters, that we use our commercially reasonable efforts to maintain the effectiveness for certain specified periods a shelf registration statement related to the shares of Common Stock to be issued upon exercise of the Warrants. New Pulitzer Notes In conjunction with its formation in 2000, St. Louis Post-Dispatch LLC ("PD LLC") borrowed $306,000,000 (the “Pulitzer Notes”) from a group of institutional lenders (the “Noteholders”). The Pulitzer Notes were guaranteed by Pulitzer pursuant to a Guaranty Agreement with the Noteholders. The aggregate principal amount of the Pulitzer Notes was payable in April 2009. In February 2009, the Pulitzer Notes and the Guaranty Agreement were amended (the “Notes Amendment”). Under the Notes Amendment, PD LLC repaid $120,000,000 of the principal amount of the debt obligation. The remaining debt balance of $186,000,000 was refinanced by the Noteholders until April 2012. In January 2012, in connection with the Plan, we entered into an amended Note Agreement and Guaranty Agreement, which amended the Pulitzer Notes and extended the maturity with the Noteholders. After consideration of unscheduled principal payments totaling $15,145,000 ( $10,145,000 in December 2011 and $5,000,000 in January 2012), offset by $3,500,000 of non-cash fees paid to the Noteholders in the form of additional Pulitzer Notes debt, the amended Pulitzer Notes had a balance of $126,355,000 in January 2012. In May 2013, we refinanced the $94,000,000 remaining balance of the Pulitzer Notes (the “ New Pulitzer Notes ” ) with BH Finance LLC ("Berkshire") a subsidiary of Berkshire Hathaway Inc. The New Pulitzer Notes bore interest at 9%, payable quarterly. On the Pulitzer Debt Satisfaction Date, we repaid the remaining balance of the New Pulitzer Notes. Other We incurred $30,931,000 of fees and expenses related to the 2014 Refinancing, including a $1,750,000 premium (1% of the principal amount) related to the redemption of the previous 2 nd lien agreement and $5,000,000 original issue discount on the 1 st Lien Term Loan. In addition, at the date of the 2014 Refinancing we had $10,549,000 of unamortized present value adjustments related to the previous 1 st lien agreement and previous 2 nd lien agreement. We also recognized original issue discount of $16,930,000 on the 2 nd Lien Term Loan related to the Warrants. Certain of the unamortized present value adjustments, the new fees and expenses and a portion of the value of the Warrants were charged to expense upon completion of the 2014 Refinancing while the remainder of such costs have been capitalized and are being amortized over the lives of the respective debt agreements. Debt financing costs are summarized as follows: (Thousands of Dollars) Prepayment premium - previous 2 nd lien agreement 1,750 Unamortized loan fees from previous credit agreements 10,549 Fees paid in cash to arrangers, lenders, attorneys and others 24,181 Original issue discount - 1 st Lien Term Loan 5,000 Fair value of Warrants granted to 2nd Lien Lenders 16,930 58,410 Charged to expense as a result of debt extinguishment 20,591 Capitalized debt financing costs 37,819 Amortization of debt financing costs totaled $1,240,000 and $3,579,000 in the 13 weeks and 39 weeks ended June 28, 2015 , respectively. Amortization of such costs is estimated to total $4,009,000 in 2015, $4,205,000 in 2016, $4,393,000 in 2017, $4,518,000 in 2018 and $4,277,000 in 2019. At June 28, 2015 we have $32,907,000 of unamortized debt financing costs in our Consolidated Balance Sheets. Debt is summarized as follows: Interest Rates (%) (Thousands of Dollars) June 28 September 28 June 28 Revolving Facility — 5,000 5.65 1st Lien Term Loan 195,000 226,750 7.25 Notes 400,000 400,000 9.50 2 nd Lien Term Loan 150,000 150,000 12.00 New Pulitzer Notes — 23,000 9.00 745,000 804,750 Less current maturities of long-term debt 32,900 31,400 Total long-term debt 712,100 773,350 At June 28, 2015 , our weighted average cost of debt, excluding amortization of debt financing costs, is 9.4% . Aggregate scheduled maturities of debt total $ 14,150,000 for the remainder of 2015, $ 25,000,000 in 2016, $ 25,000,000 in 2017, $ 25,000,000 in 2018, $105,850,000 in 2019 and $ 550,000,000 thereafter. Liquidity At June 28, 2015 , after consideration of letters of credit, we have approximately $32,935,000 available for future use under our Revolving Facility. Including cash, our liquidity at June 28, 2015 totals $51,839,000 . This liquidity amount excludes any future cash flows. We expect all interest and principal payments due in the next twelve months will be satisfied by our cash flows, which will allow us to maintain an adequate level of liquidity. The Warrants, if and when exercised, would provide additional liquidity in an amount up to $25,140,000 subject to a reduction for any amounts the Company may elect to use to repay our 1 st Lien Term Loan and/or the Notes. The 2014 Refinancing significantly enhanced our debt maturity profile. Final maturities of our debt have been extended to dates from December 2018 through December 2022. As a result, we believe refinancing risk has been substantially reduced for the next several years. There are numerous potential consequences under the Notes, 1st Lien Credit Facility and 2nd Lien Term Loan, if an event of default, as defined, occurs and is not remedied. Many of those consequences are beyond our control. The occurrence of one or more events of default would give rise to the right of the applicable lender(s) to exercise their remedies under the Notes, 1st Lien Credit Facility and 2nd Lien Term Loan, respectively, including, without limitation, the right to accelerate all outstanding debt and take actions authorized in such circumstances under applicable collateral security documents. Our ability to operate as a going concern is dependent on our ability to remain in compliance with debt covenants and to refinance or amend our debt agreements as they become due, or earlier if available liquidity is consumed. The Notes, 1st Lien Credit Facility and 2nd Lien Term Loan have only limited affirmative covenants with which we are required to maintain compliance. We are in compliance with our debt covenants at June 28, 2015 . |
Pension, Postretirement, and Po
Pension, Postretirement, and Postemployement Obligations | 9 Months Ended |
Jun. 28, 2015 | |
Pension Postretirement And Postemployment Defined Benefit Plans [Abstract] | |
Pension and Other Postretirement Benefits Disclosure [Text Block] | PENSION, POSTRETIREMENT AND POSTEMPLOYMENT DEFINED BENEFIT PLANS We have three noncontributory defined benefit pension plans that together cover selected employees. Benefits under the plans were generally based on salary and years of service. All benefits are frozen; however participants in one of the plans may receive additional benefits if they remain employed until retirement age, resulting in the continuing service costs. Our liability and related expense for benefits under the plans are recorded over the service period of active employees based upon annual actuarial calculations. Plan funding strategies are influenced by government regulations and income tax laws. Plan assets consist primarily of domestic and foreign corporate equity securities, government and corporate bonds, hedge fund investments and cash. In addition, we provide retiree medical and life insurance benefits under postretirement plans at several of our operating locations. The level and adjustment of participant contributions vary depending on the specific plan. PD LLC also provides postemployment disability benefits to certain employee groups prior to retirement. Our liability and related expense for benefits under the postretirement plans are recorded over the service period of active employees based upon annual actuarial calculations. We accrue postemployment disability benefits when it becomes probable that such benefits will be paid and when sufficient information exists to make reasonable estimates of the amounts to be paid. Plan assets may also be used to fund current medical costs of certain active employees. We use a fiscal year end measurement date for all of our pension and postretirement medical plan obligations. The net periodic cost (benefit) components of our pension and postretirement medical plans are as follows: PENSION PLANS 13 Weeks Ended 39 Weeks Ended (Thousands of Dollars) June 28 June 29 June 28 June 29 Service cost for benefits earned during the period 226 39 678 117 Interest cost on projected benefit obligation 1,859 1,999 5,577 5,997 Expected return on plan assets (2,466 ) (2,483 ) (7,398 ) (7,449 ) Amortization of net loss 420 106 1,260 318 Amortization of prior service benefit (34 ) (34 ) (102 ) (102 ) Pension expense (benefit) 5 (373 ) 15 (1,119 ) POSTRETIREMENT MEDICAL PLANS 13 Weeks Ended 39 Weeks Ended (Thousands of Dollars) June 28 June 29 June 28 June 29 Service cost for benefits earned during the period 39 149 117 447 Interest cost on projected benefit obligation 211 228 633 684 Expected return on plan assets (361 ) (371 ) (1,083 ) (1,113 ) Amortization of net gain (347 ) (455 ) (1,041 ) (1,365 ) Amortization of prior service benefit (365 ) (365 ) (1,095 ) (1,095 ) Postretirement medical benefit (823 ) (814 ) (2,469 ) (2,442 ) Amortization of net gains (losses) and prior service benefits are recorded as compensation in the Consolidated Statements of Operations and Comprehensive Operations. Based on our forecast at June 28, 2015 , we expect to contribute $2,818,000 to our pension plans for the remainder of 2015. Based on our forecast at June 28, 2015 , we do not expect to contribute to our postretirement plans for the remainder of 2015. |
Income Taxes
Income Taxes | 9 Months Ended |
Jun. 28, 2015 | |
Income Tax Disclosure [Abstract] | |
Income Tax Disclosure [Text Block] | INCOME TAXES We recorded income tax expense of $2,141,000 related to income before taxes of $4,276,000 for the 13 weeks ended June 28, 2015. For the 13 weeks ended June 29, 2014, we recorded $4,882,000 in income tax benefit related to a loss before income taxes of $14,393,000 . The effective income tax rates for the 13 weeks ended June 28, 2015 and June 29, 2014 were 50.1% and 33.9% , respectively. The increase in the effective income tax rate for the 13 weeks ended June 28, 2015 is primarily due to a mark-to-market adjustment to value the Warrants issued in connection with our 2014 Refinancing. We recorded income tax expense of $9,353,000 related to income before taxes of $23,537,000 for the 39 weeks ended June 28, 2015. For the 39 weeks ended June 29,2014, we recorded $3,995,000 in income tax expenses related to income before taxes of $8,290,000 . The effective income tax rates for the 39 weeks ended June 28, 2015 and June 29, 2014 were 39.7% and 48.2% , respectively. The primary differences between these rates and the U.S. federal statutory rate of 35% are due to the effect of state taxes, non-deductible expenses, adjustments to reserves for uncertain tax positions, including any related interest, and mark-to-market adjustments to value the Warrants. We file a consolidated federal tax return, as well as combined and separate tax returns in approximately 27 state and local jurisdictions. We have various income tax examinations ongoing which are at different stages of completion, but generally our income tax returns have been audited or closed to audit through 2009. See Note 10 for a discussion of our tax audits. State cash tax payments of $173,000 were made during the 39 weeks ended June 28, 2015 , of which $1,000 were made during the 13 weeks ended June 28, 2015 . State cash tax refunds of $236,000 relating to carrybacks of prior year losses were received during the 39 weeks ended June 28, 2015 , all of which were received during the 13 weeks ended June 28, 2015 . Due to our federal and state net operating loss carryforwards and based on historical levels of performance, we do not expect any significant income tax payments in 2015, 2016 or 2017. |
Earnings per Common Share
Earnings per Common Share | 9 Months Ended |
Jun. 28, 2015 | |
Earnings Loss Per Common Share [Abstract] | |
Earnings Per Share [Text Block] | EARNINGS PER COMMON SHARE The following table sets forth the computation of basic and diluted earnings per common share: 13 Weeks Ended 39 Weeks Ended (Thousands of Dollars and Shares, Except Per Share Data) June 28 June 29 June 28 June 29 Income (loss) attributable to Lee Enterprises, Incorporated: 1,882 (9,746 ) 13,435 3,632 Weighted average common shares 54,642 53,627 54,352 53,342 Less weighted average restricted Common Stock (2,045 ) (1,283 ) (1,831 ) (1,126 ) Basic average common shares 52,597 52,344 52,521 52,216 Dilutive stock options and restricted Common Stock 1,459 — 1,436 1,439 Diluted average common shares 54,056 52,344 53,957 53,655 Earnings (loss) per common share: Basic 0.04 (0.19 ) 0.26 0.07 Diluted 0.03 (0.19 ) 0.25 0.07 For the 13 weeks and 39 weeks ended June 28, 2015 , 6,116,000 and 6,814,000 weighted average shares, respectively, were not considered in the computation of diluted earnings per common share because the exercise prices of the related stock options and Warrants were in excess of the fair market value of our Common Stock. In the 13 weeks ended June 29, 2014 no stock options or Warrants were considered in the computation of loss per common share. For the 39 weeks ended June 29, 2014 , 2,107,000 weighted average shares were not considered in the computation of diluted earnings per common share because the related stock option exercise prices were in excess of the fair market value of our Common Stock. |
Stock Ownership Plans
Stock Ownership Plans | 9 Months Ended |
Jun. 28, 2015 | |
Stock Ownership Plans [Abstract] | |
Disclosure of Compensation Related Costs, Share-based Payments [Text Block] | STOCK OWNERSHIP PLANS A summary of stock option activity during the 39 weeks ended June 28, 2015 follows: (Thousands of Dollars and Shares, Except Per Share Data) Shares Weighted Average Exercise Price Weighted Average Remaining Contractual Term (Years) Aggregate Intrinsic Value Outstanding, September 28, 2014 2,333 2.70 Exercised (151 ) 1.36 Cancelled (104 ) 6.61 Outstanding, June 28, 2015 2,078 2.60 5.9 3,144 Exercisable, June 28, 2015 1,993 2.65 5.8 2,998 Total unrecognized compensation expense for unvested stock options as of June 28, 2015 is $25,000 , which will be recognized over a weighted average period of 0.5 years. Restricted Common Stock The table below summarizes restricted Common Stock activity during the 39 weeks ended June 28, 2015 . (Thousands of Shares, Except Per Share Data) Shares Weighted Average Grant Date Fair Value Outstanding, September 28, 2014 1,291 2.72 Granted 786 3.62 Cancelled (15 ) 3.62 Outstanding, June 28, 2015 2,062 3.06 Total unrecognized compensation expense for unvested restricted Common Stock at June 28, 2015 is $3,691,000 , which will be recognized over a weighted average period of 1.5 years. |
Fair Value Measurements
Fair Value Measurements | 9 Months Ended |
Jun. 28, 2015 | |
Fair Value Measurements [Abstract] | |
Fair Value Disclosures [Text Block] | FAIR VALUE MEASUREMENTS Financial Accounting Standards Board Accounting Standards Codification Topic 820 establishes a three-level hierarchy of fair value measurements based on whether the inputs to those measurements are observable or unobservable which consists of the following levels: Level 1 - Quoted prices for identical instruments in active markets; Level 2 - Quoted prices for similar instruments in active markets; quoted prices for identical or similar instruments in markets that are not active; and model-derived valuations in which all significant inputs are observable in active markets; and Level 3 - Valuations derived from valuation techniques in which one or more significant inputs are unobservable. The following methods and assumptions are used to estimate the fair value of each class of financial instruments for which it is practicable to estimate value. The carrying amounts of cash equivalents, accounts receivable and accounts payable approximate fair value because of the short maturity of those instruments. Investments totaling $7,359,000 , including our 17% ownership of the nonvoting common stock of TCT, are carried at cost. The fair value of floating rate debt, which consists of our 1 st Lien Term Loan, is $ 195,487,500 , based on an average of private market price quotations. Our fixed rate debt consists of $400,000,000 principal amount of the Notes and $150,000,000 principal amount under the 2 nd Lien Term Loan. At June 28, 2015 , based on private market price quotations the fair values were $ 406,750,000 and $ 159,375,000 for the Notes and 2nd Lien Term Loan, respectively. These represent level 2 fair value measurements. As discussed more fully in Note 4, we recorded a liability for the Warrants issued in connection with the Warrant Agreement. The liability was initially measured at its fair value. We remeasure the liability to fair value each reporting period, with changes reported in other non-operating income (expense). The initial fair value of the Warrants was $ 16,930,000 . At September 28, 2014, the fair value of the Warrants was $ 10,808,000 . At March 29, 2015, the fair value of the Warrants was $ 10,029,000 . At June 28, 2015 , the fair value of the Warrants is $ 11,119,800 . Fair value is determined using the Black-Scholes option pricing model. These represent level 2 fair value measurements. |
Commitments and Contingencies
Commitments and Contingencies | 9 Months Ended |
Jun. 28, 2015 | |
Commitments And Contingent Liabilities [Abstract] | |
Commitments and Contingencies Disclosure [Text Block] | COMMITMENTS AND CONTINGENT LIABILITIES Redemption of PD LLC Minority Interest In February 2009, in conjunction with the Notes Amendment, PD LLC redeemed the 5% interest in PD LLC and STL Distribution Services LLC ("DS LLC") owned by The Herald Publishing Company, LLC ("Herald") pursuant to a Redemption Agreement and adopted conforming amendments to the Operating Agreement. As a result, the value of Herald's former interest (the “Herald Value”) was to be settled, based on a calculation of 10% of the fair market value of PD LLC and DS LLC at the time of settlement, less the balance, as adjusted, of the Pulitzer Notes or the equivalent successor debt, if any. We recorded a liability of $2,300,000 in 2009 as an estimate of the amount of the Herald Value to be disbursed. In 2011, we reduced the liability related to the Herald Value to $300,000 based on the current estimate of fair value. In 2014, we issued 100,000 shares of Common Stock in full satisfaction of the Herald Value. Such shares had a fair value of $298,000 on the date of issuance. The redemption of Herald's interest in PD LLC and DS LLC generates significant tax benefits to us as a consequence of the resulting increase in the tax basis of the assets owned by PD LLC and DS LLC and the related depreciation and amortization deductions. The increase in basis to be amortized for income tax purposes over a 15 year period beginning in February 2009 is approximately $258,000,000 . Income Taxes Commitments exclude unrecognized tax benefits to be recorded in accordance with FASB ASC Topic 740, Income Taxes . We are unable to reasonably estimate the ultimate amount or timing of cash settlements with the respective taxing authorities for such matters. See Note 6. We file income tax returns with the IRS and various state tax jurisdictions. From time to time, we are subject to routine audits by those agencies and those audits may result in proposed adjustments. We have considered the alternative interpretations that may be assumed by the various taxing agencies, we believe the positions taken regarding our filings are valid, and that adequate tax liabilities have been recorded to resolve such matters. However, the actual outcome cannot be determined with certainty and the difference could be material, either positively or negatively, to the Consolidated Statements of Operations and Comprehensive Income (Loss) in the periods in which such matters are ultimately determined. We do not believe the final resolution of such matters will be material to our consolidated financial position or cash flows. Legal Proceedings In 2008, a group of newspaper carriers filed suit against us in the United States District Court for the Southern District of California, claiming to be our employees and not independent contractors. The plaintiffs sought relief related to alleged violations of various employment-based statutes, and requested punitive damages and attorneys' fees. In 2014 we reached a settlement with the plaintiffs and recorded a liability of $2,300,000. The court approved the settlement and we paid $2,176,000 in full satisfaction of the claim in April 2015. We are involved in a variety of other legal actions that arise in the normal course of business. Insurance coverage mitigates potential loss for certain of these other matters. While we are unable to predict the ultimate outcome of these other legal actions, it is our opinion that the disposition of these matters will not have a material adverse effect on our Consolidated Financial Statements, taken as a whole. Multiemployer Pension Plans In 2015, we were notified that a bargaining unit at one of our enterprises was no longer being represented. As a result of the enterprise's employees' withdrawal from representation, we may be subject to a future claim from the multiemployer pension plan for a withdrawal liability. The amount of such liability, if any, will be dependent on actions taken, or not taken, by the Company and the pension plan, as well as the future investment performance and funding status of the pension plan. |
Investments in Associated Com16
Investments in Associated Companies (Tables) | 9 Months Ended |
Jun. 28, 2015 | |
Equity Method Investee- TNI [Member] | |
Schedule of Equity Method Investments [Line Items] | |
Schedule of Equity Method Investments [Table Text Block] | Summarized results of TNI are as follows: 13 Weeks Ended 39 Weeks Ended (Thousands of Dollars) June 28 June 29 June 28 June 29 Operating revenue 13,063 13,750 43,035 44,888 Operating expenses, excluding workforce adjustments, depreciation and amortization 10,936 11,449 34,783 36,116 Workforce adjustments — — — (87 ) Operating income 2,127 2,301 8,252 8,859 Company's 50% share of operating income 1,064 1,150 4,127 4,429 Less amortization of intangible assets 105 104 314 313 Equity in earnings of TNI 959 1,046 3,813 4,116 |
Equity Method Investee- MNI [Member] | |
Schedule of Equity Method Investments [Line Items] | |
Schedule of Equity Method Investments [Table Text Block] | Summarized results of MNI are as follows: 13 Weeks Ended 39 Weeks Ended (Thousands of Dollars) June 28 June 29 June 28 June 29 Operating revenue 16,580 17,278 51,258 50,710 Operating expenses, excluding workforce adjustments, depreciation and amortization 13,518 14,390 42,328 42,246 Workforce adjustments 261 15 318 244 Depreciation and amortization 463 384 1,390 1,179 Operating income 2,338 2,489 7,222 7,041 Net income 1,491 1,579 4,603 4,464 Equity in earnings of MNI 746 790 2,301 2,232 |
Goodwill and other Intangible17
Goodwill and other Intangible Assets (Tables) | 9 Months Ended |
Jun. 28, 2015 | |
Goodwill [Line Items] | |
Schedule of Goodwill [Table Text Block] | Changes in the carrying amount of goodwill are as follows: 39 Weeks Ended (Thousands of Dollars) June 28 Goodwill, gross amount 1,532,458 Accumulated impairment losses (1,288,729 ) Goodwill, beginning of period 243,729 Goodwill, end of period 243,729 |
Schedule of Intangible Assets [Table Text Block] | Identified intangible assets consist of the following: (Thousands of Dollars) June 28 September 28 Nonamortized intangible assets: Mastheads 25,102 25,102 Amortizable intangible assets: Customer and newspaper subscriber lists 687,055 686,732 Less accumulated amortization 519,774 499,178 167,281 187,554 Noncompete and consulting agreements 28,524 28,524 Less accumulated amortization 28,524 28,523 — 1 Other intangible assets, net 192,383 212,657 |
Debt (Tables)
Debt (Tables) | 9 Months Ended |
Jun. 28, 2015 | |
New 1st Lien Term Loan [Member] | |
Schedule of Payments [Line Items] | |
Schedule Of Debt Payments [Table Text Block] | 2014 payments made under the 1 st Lien Term Loan or previous 1 st lien agreement are summarized as follows: 13 Weeks Ended (Thousands of Dollars) December 29 March 30 June 29 September 28 Mandatory 3,000 3,000 6,250 6,250 Voluntary 3,350 5,500 10,750 — Asset sales 150 1,500 — — 1 st Lien Term Loan excess cash flow — — — — 6,500 10,000 17,000 6,250 2015 payments made, or required to be made for the remainder of the year, under the 1 st Lien Term Loan are summarized as follows: 13 Weeks Ended 13 Weeks Ending (Thousands of Dollars) December 28 March 29 June 28 September 27 Mandatory 6,250 6,250 6,250 6,250 Voluntary 5,000 4,000 4,000 — Asset sales — — — — Excess cash flow — — — 7,900 Pulitzer excess cash flow — — — — 11,250 10,250 10,250 14,150 |
Debt Schedule Of Debt Outstandi
Debt Schedule Of Debt Outstanding (Tables) | 9 Months Ended |
Jun. 28, 2015 | |
Debt Instrument [Line Items] | |
Schedule of Long-term Debt Instruments [Table Text Block] | Debt is summarized as follows: Interest Rates (%) (Thousands of Dollars) June 28 September 28 June 28 Revolving Facility — 5,000 5.65 1st Lien Term Loan 195,000 226,750 7.25 Notes 400,000 400,000 9.50 2 nd Lien Term Loan 150,000 150,000 12.00 New Pulitzer Notes — 23,000 9.00 745,000 804,750 Less current maturities of long-term debt 32,900 31,400 Total long-term debt 712,100 773,350 |
Debt Reorganization Cost (Table
Debt Reorganization Cost (Tables) | 9 Months Ended |
Jun. 28, 2015 | |
Debt Disclosure [Abstract] | |
Reorganization Costs [Table Text Block] | Debt financing costs are summarized as follows: (Thousands of Dollars) Prepayment premium - previous 2 nd lien agreement 1,750 Unamortized loan fees from previous credit agreements 10,549 Fees paid in cash to arrangers, lenders, attorneys and others 24,181 Original issue discount - 1 st Lien Term Loan 5,000 Fair value of Warrants granted to 2nd Lien Lenders 16,930 58,410 Charged to expense as a result of debt extinguishment 20,591 Capitalized debt financing costs 37,819 |
Debt Schedule of Debt Provision
Debt Schedule of Debt Provisions (Tables) | 9 Months Ended |
Jun. 28, 2015 | |
New Second Lien Loan [Member] | |
Debt Instrument [Line Items] | |
Debt Instrument Redemption [Table Text Block] | Period Beginning Percentage of Principal Amount March 31, 2014 112 March 31, 2017 106 March 31, 2018 103 March 31, 2019 100 |
Senior Notes [Member] | |
Debt Instrument [Line Items] | |
Debt Instrument Redemption [Table Text Block] | Period Beginning Percentage of Principal Amount March 15, 2018 104.75 March 15, 2019 102.375 March 15, 2020 100 |
Pension, Postretirement, and 22
Pension, Postretirement, and Postemployement Obligations (Tables) | 9 Months Ended |
Jun. 28, 2015 | |
Pension Postretirement And Postemployment Defined Benefit Plans [Abstract] | |
Schedule of Defined Benefit Plans Disclosures [Table Text Block] | The net periodic cost (benefit) components of our pension and postretirement medical plans are as follows: PENSION PLANS 13 Weeks Ended 39 Weeks Ended (Thousands of Dollars) June 28 June 29 June 28 June 29 Service cost for benefits earned during the period 226 39 678 117 Interest cost on projected benefit obligation 1,859 1,999 5,577 5,997 Expected return on plan assets (2,466 ) (2,483 ) (7,398 ) (7,449 ) Amortization of net loss 420 106 1,260 318 Amortization of prior service benefit (34 ) (34 ) (102 ) (102 ) Pension expense (benefit) 5 (373 ) 15 (1,119 ) POSTRETIREMENT MEDICAL PLANS 13 Weeks Ended 39 Weeks Ended (Thousands of Dollars) June 28 June 29 June 28 June 29 Service cost for benefits earned during the period 39 149 117 447 Interest cost on projected benefit obligation 211 228 633 684 Expected return on plan assets (361 ) (371 ) (1,083 ) (1,113 ) Amortization of net gain (347 ) (455 ) (1,041 ) (1,365 ) Amortization of prior service benefit (365 ) (365 ) (1,095 ) (1,095 ) Postretirement medical benefit (823 ) (814 ) (2,469 ) (2,442 ) |
Earnings per Common Share (Tabl
Earnings per Common Share (Tables) | 9 Months Ended |
Jun. 28, 2015 | |
Earnings Per Share [Abstract] | |
Schedule of Earnings Per Share, Basic and Diluted [Table Text Block] | The following table sets forth the computation of basic and diluted earnings per common share: 13 Weeks Ended 39 Weeks Ended (Thousands of Dollars and Shares, Except Per Share Data) June 28 June 29 June 28 June 29 Income (loss) attributable to Lee Enterprises, Incorporated: 1,882 (9,746 ) 13,435 3,632 Weighted average common shares 54,642 53,627 54,352 53,342 Less weighted average restricted Common Stock (2,045 ) (1,283 ) (1,831 ) (1,126 ) Basic average common shares 52,597 52,344 52,521 52,216 Dilutive stock options and restricted Common Stock 1,459 — 1,436 1,439 Diluted average common shares 54,056 52,344 53,957 53,655 Earnings (loss) per common share: Basic 0.04 (0.19 ) 0.26 0.07 Diluted 0.03 (0.19 ) 0.25 0.07 |
Stock Ownership Plans (Tables)
Stock Ownership Plans (Tables) | 9 Months Ended |
Jun. 28, 2015 | |
Restricted Stock [Member] | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |
Disclosure of Share-based Compensation Arrangements by Share-based Payment Award [Table Text Block] | The table below summarizes restricted Common Stock activity during the 39 weeks ended June 28, 2015 . (Thousands of Shares, Except Per Share Data) Shares Weighted Average Grant Date Fair Value Outstanding, September 28, 2014 1,291 2.72 Granted 786 3.62 Cancelled (15 ) 3.62 Outstanding, June 28, 2015 2,062 3.06 |
Stock Options [Member] | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |
Disclosure of Share-based Compensation Arrangements by Share-based Payment Award [Table Text Block] | A summary of stock option activity during the 39 weeks ended June 28, 2015 follows: (Thousands of Dollars and Shares, Except Per Share Data) Shares Weighted Average Exercise Price Weighted Average Remaining Contractual Term (Years) Aggregate Intrinsic Value Outstanding, September 28, 2014 2,333 2.70 Exercised (151 ) 1.36 Cancelled (104 ) 6.61 Outstanding, June 28, 2015 2,078 2.60 5.9 3,144 Exercisable, June 28, 2015 1,993 2.65 5.8 2,998 |
Basis of Presentation Schedule
Basis of Presentation Schedule of Less than 100% Subsidiaries (Details) | 9 Months Ended |
Jun. 28, 2015 | |
Equity Method Investee- TNI [Member] | |
Schedule Of Less Than 100% Owned Subsidiaries [Line Items] | |
Less Than 100% Owned Subsidiaries, Percentage Owned | 50.00% |
Equity Method Investee- MNI [Member] | |
Schedule Of Less Than 100% Owned Subsidiaries [Line Items] | |
Less Than 100% Owned Subsidiaries, Percentage Owned | 50.00% |
INN Partners [Member] | |
Schedule Of Less Than 100% Owned Subsidiaries [Line Items] | |
Less Than 100% Owned Subsidiaries, Percentage Owned | 82.50% |
Investments in Associated Com26
Investments in Associated Companies Summarized Financial Information (Details) - USD ($) | 3 Months Ended | 9 Months Ended | ||
Jun. 28, 2015 | Jun. 29, 2014 | Jun. 28, 2015 | Jun. 29, 2014 | |
Schedule of Equity Method Investments [Line Items] | ||||
Equity in earnings of associated companies | $ 1,705,000 | $ 1,836,000 | $ 6,114,000 | $ 6,348,000 |
Equity Method Investee- TNI [Member] | ||||
Schedule of Equity Method Investments [Line Items] | ||||
Share of TNI Operating Expenses | 45,000 | (17,000) | (153,000) | (51,000) |
Equity Method Investment, Summarized Financial Information, Revenue | 13,063,000 | 13,750,000 | 43,035,000 | 44,888,000 |
Equity Method Investment, Summarized Financial Information, Operating Expenses Excluding Depreciation, Amortization And Workforce Adjustments | 10,936,000 | 11,449,000 | 34,783,000 | 36,116,000 |
Equity Method Investment, Summarized Financial Information, Workforce Adjustments | 0 | 0 | 0 | (87,000) |
Equity Method Investment, Summarized Financial Information, Operating Income | 2,127,000 | 2,301,000 | 8,252,000 | 8,859,000 |
Income (Loss) From Equity Method Investments Before Amortization | 1,064,000 | 1,150,000 | 4,127,000 | 4,429,000 |
Amortization Of Intangible Assets- TNI | 105,000 | 104,000 | 314,000 | 313,000 |
Equity in earnings of associated companies | 959,000 | 1,046,000 | 3,813,000 | 4,116,000 |
Finite-Lived Intangible Assets, Amortization Expense, Next Twelve Months | 418,000 | 418,000 | ||
Finite-Lived Intangible Assets, Amortization Expense, Rolling Year Two | 418,000 | 418,000 | ||
Finite-Lived Intangible Assets, Amortization Expense, Year Three | 418,000 | 418,000 | ||
Finite-Lived Intangible Assets, Amortization Expense, Year Four | 418,000 | 418,000 | ||
Finite-Lived Intangible Assets, Amortization Expense, Year Five | 314,000 | 314,000 | ||
Equity Method Investee- MNI [Member] | ||||
Schedule of Equity Method Investments [Line Items] | ||||
Equity Method Investment, Summarized Financial Information, Revenue | 16,580,000 | 17,278,000 | 51,258,000 | 50,710,000 |
Equity Method Investment, Summarized Financial Information, Operating Expenses Excluding Depreciation, Amortization And Workforce Adjustments | 13,518,000 | 14,390,000 | 42,328,000 | 42,246,000 |
Equity Method Investment, Summarized Financial Information, Workforce Adjustments | 261,000 | 15,000 | 318,000 | 244,000 |
Equity Method Investment, Summarized Financial Information, Depreciation And Amortization | 463,000 | 384,000 | 1,390,000 | 1,179,000 |
Equity Method Investment, Summarized Financial Information, Operating Income | 2,338,000 | 2,489,000 | 7,222,000 | 7,041,000 |
Equity Method Investment, Summarized Financial Information, Net Income (Loss) | 1,491,000 | 1,579,000 | 4,603,000 | 4,464,000 |
Equity in earnings of associated companies | $ 746,000 | $ 790,000 | $ 2,301,000 | $ 2,232,000 |
Goodwill and other Intangible27
Goodwill and other Intangible Assets Schedule of Goodwill (Details) $ in Thousands | Jun. 28, 2015USD ($) |
Goodwill [Line Items] | |
Goodwill, Gross | $ 1,532,458 |
Goodwill, Impaired, Accumulated Impairment Loss | $ (1,288,729) |
Goodwill and other Intangible28
Goodwill and other Intangible Assets Schedule of Intangible Assets (Details) - USD ($) | Jun. 28, 2015 | Sep. 28, 2014 |
Schedule of Intangible Assets [Line Items] | ||
Mastheads | $ 25,102,000 | $ 25,102,000 |
Other intangible assets, net | 192,383,000 | 212,657,000 |
Finite-Lived Intangible Assets, Amortization Expense, Next Twelve Months | 26,334,000 | |
Finite-Lived Intangible Assets, Amortization Expense, Rolling Year Two | 25,166,000 | |
Finite-Lived Intangible Assets, Amortization Expense, Year Three | 18,685,000 | |
Finite-Lived Intangible Assets, Amortization Expense, Year Four | 16,321,000 | |
Finite-Lived Intangible Assets, Amortization Expense, Year Five | 15,249,000 | |
Customer Lists [Member] | ||
Schedule of Intangible Assets [Line Items] | ||
Finite-Lived Intangible Assets, Gross | 687,055,000 | 686,732,000 |
Finite-Lived Intangible Assets, Accumulated Amortization | 519,774,000 | 499,178,000 |
Finite-Lived Intangible Assets, Net | 167,281,000 | 187,554,000 |
Noncompete Agreements [Member] | ||
Schedule of Intangible Assets [Line Items] | ||
Finite-Lived Intangible Assets, Gross | 28,524,000 | 28,524,000 |
Finite-Lived Intangible Assets, Accumulated Amortization | 28,524,000 | 28,523,000 |
Finite-Lived Intangible Assets, Net | $ 0 | $ 1,000 |
Debt Schedule of Long-Term Debt
Debt Schedule of Long-Term Debt Instruments (Details) - USD ($) | 1 Months Ended | 2 Months Ended | 3 Months Ended | 4 Months Ended | 9 Months Ended | ||||||||
Jan. 30, 2012 | Feb. 18, 2009 | Jun. 28, 2015 | Dec. 30, 2012 | Jan. 30, 2012 | Jun. 28, 2015 | Mar. 29, 2015 | Sep. 28, 2014 | Mar. 31, 2014 | Mar. 30, 2014 | May. 01, 2013 | Mar. 31, 2013 | May. 01, 2000 | |
Debt Instrument [Line Items] | |||||||||||||
Unamortized Debt Issuance Expense | $ 32,907,000 | $ 32,907,000 | |||||||||||
Amortization of Financing Costs | 1,240,000 | 3,579,000 | |||||||||||
Warrant liability fair value | $ 11,119,800 | $ 11,119,800 | $ 10,029,000 | $ 10,808,000 | $ 16,930,000 | $ 16,930,000 | $ 16,930,000 | ||||||
Debt, Weighted Average Interest Rate | 9.40% | 9.40% | |||||||||||
Debt, Long-term and Short-term, Combined Amount | $ 745,000,000 | $ 745,000,000 | 804,750,000 | ||||||||||
Long-term Debt, Maturities, Repayments of Principal, Remainder of Fiscal Year | 14,150,000 | 14,150,000 | |||||||||||
Long-term Debt, Maturities, Repayments of Principal in Year Two | 25,000,000 | 25,000,000 | |||||||||||
Long-term Debt, Maturities, Repayments of Principal in Year Three | 25,000,000 | 25,000,000 | |||||||||||
Long-term Debt, Maturities, Repayments of Principal in Year Four | 25,000,000 | 25,000,000 | |||||||||||
Long-term Debt, Maturities, Repayments of Principal in Year Five | 105,850,000 | 105,850,000 | |||||||||||
Long-term Debt, Maturities, Repayments of Principal after Year Five | 550,000,000 | 550,000,000 | |||||||||||
Debt Instrument, Unamortized Discount | 5,000,000 | ||||||||||||
Long-term Debt, Current Maturities | 32,900,000 | 32,900,000 | 31,400,000 | ||||||||||
Long-term Debt | 712,100,000 | 712,100,000 | 773,350,000 | ||||||||||
Liquidity | 51,839,000 | 51,839,000 | |||||||||||
Future Liquidity- Warrant Exercise Proceeds | 25,140,000 | ||||||||||||
Revolving Line Of Credit [Member] | |||||||||||||
Debt Instrument [Line Items] | |||||||||||||
Debt, Long-term and Short-term, Combined Amount | $ 0 | $ 0 | 5,000,000 | ||||||||||
Debt Instrument, Interest Rate, Stated Percentage | 5.65% | 5.65% | |||||||||||
Line of Credit Facility, Remaining Borrowing Capacity | $ 32,935,000 | $ 32,935,000 | |||||||||||
Line of Credit [Member] | |||||||||||||
Debt Instrument [Line Items] | |||||||||||||
Debt Instrument, Face Amount | 40,000,000 | 40,000,000 | |||||||||||
Senior Notes [Member] | |||||||||||||
Debt Instrument [Line Items] | |||||||||||||
Debt Instrument, Face Amount | $ 400,000,000 | $ 400,000,000 | |||||||||||
Debt Instrument, Interest Rate at Period End | 9.50% | 9.50% | |||||||||||
Debt, Long-term and Short-term, Combined Amount | $ 400,000,000 | $ 400,000,000 | |||||||||||
Debt Instrument, Interest Rate, Stated Percentage | 9.50% | 9.50% | |||||||||||
New 1st Lien Term Loan [Member] | |||||||||||||
Debt Instrument [Line Items] | |||||||||||||
Debt Instrument, Face Amount | $ 250,000,000 | $ 250,000,000 | |||||||||||
Debt, Long-term and Short-term, Combined Amount | $ 195,000,000 | $ 195,000,000 | 226,750,000 | ||||||||||
Debt Financing and Reorganization Costs Paid | $ 30,931,000 | ||||||||||||
Debt Instrument, Interest Rate, Stated Percentage | 7.25% | 7.25% | |||||||||||
Debt Instrument, Unamortized Discount | 5,000,000 | ||||||||||||
New Second Lien Loan [Member] | |||||||||||||
Debt Instrument [Line Items] | |||||||||||||
Debt Instrument, Face Amount | $ 150,000,000 | $ 150,000,000 | |||||||||||
Debt Instrument, Interest Rate at Period End | 12.00% | 12.00% | |||||||||||
Debt, Long-term and Short-term, Combined Amount | $ 150,000,000 | $ 150,000,000 | 150,000,000 | ||||||||||
Debt Instrument, Interest Rate, Stated Percentage | 12.00% | 12.00% | |||||||||||
Pulitzer Notes [Member] | |||||||||||||
Debt Instrument [Line Items] | |||||||||||||
Debt Instrument, Face Amount | $ 186,000,000 | $ 306,000,000 | |||||||||||
Long Term Debt, Principal Payments | $ 5,000,000 | $ 120,000,000 | $ 10,145,000 | $ 15,145,000 | |||||||||
Debt, Long-term and Short-term, Combined Amount | 126,355,000 | 126,355,000 | |||||||||||
Debt Instrument, Unamortized Discount | $ 3,500,000 | $ 3,500,000 | |||||||||||
1st Lien Agreement [Member] | |||||||||||||
Debt Instrument [Line Items] | |||||||||||||
Debt, Long-term and Short-term, Combined Amount | 593,000,000 | ||||||||||||
2nd Lien Agreement [Member] | |||||||||||||
Debt Instrument [Line Items] | |||||||||||||
Debt, Long-term and Short-term, Combined Amount | $ 175,000,000 | ||||||||||||
New Pulitzer Notes [Member] | |||||||||||||
Debt Instrument [Line Items] | |||||||||||||
Debt Instrument, Face Amount | $ 94,000,000 | $ 94,000,000 | $ 94,000,000 | ||||||||||
Debt, Long-term and Short-term, Combined Amount | $ 0 | $ 0 | $ 23,000,000 | ||||||||||
Debt Instrument, Interest Rate, Stated Percentage | 9.00% | 9.00% | |||||||||||
Federal Funds Rate [Member] | Revolving Line Of Credit [Member] | |||||||||||||
Debt Instrument [Line Items] | |||||||||||||
Interest Rate Margin | 4.50% | 4.50% | |||||||||||
Federal Funds Rate [Member] | New 1st Lien Term Loan [Member] | |||||||||||||
Debt Instrument [Line Items] | |||||||||||||
Base Interest Rate | 0.50% | 0.50% | |||||||||||
Interest Rate Margin | 5.25% | 5.25% | |||||||||||
Prime Lending Rate [Member] | New 1st Lien Term Loan [Member] | |||||||||||||
Debt Instrument [Line Items] | |||||||||||||
Base Interest Rate | 2.00% | 2.00% | |||||||||||
30 Day LIBOR [Member] | Revolving Line Of Credit [Member] | |||||||||||||
Debt Instrument [Line Items] | |||||||||||||
Interest Rate Margin | 5.50% | 5.50% | |||||||||||
30 Day LIBOR [Member] | Line of Credit [Member] | |||||||||||||
Debt Instrument [Line Items] | |||||||||||||
Base Interest Rate | 0.50% | 0.50% | |||||||||||
30 Day LIBOR [Member] | New 1st Lien Term Loan [Member] | |||||||||||||
Debt Instrument [Line Items] | |||||||||||||
Base Interest Rate | 1.00% | 1.00% | |||||||||||
Interest Rate Margin | 6.25% | 6.25% | |||||||||||
Until March 31, 2017 [Member] | |||||||||||||
Debt Instrument [Line Items] | |||||||||||||
Debt Instrument, Redemption Price, Percentage of Principal Amount Redeemed | 112.00% | ||||||||||||
Prior to March 15, 2018 [Member] | |||||||||||||
Debt Instrument [Line Items] | |||||||||||||
Debt Instrument, Redemption Price, Percentage of Principal Amount Redeemed | 109.50% | ||||||||||||
March 16, 2018 through March 15, 2019 [Member] | |||||||||||||
Debt Instrument [Line Items] | |||||||||||||
Debt Instrument, Redemption Price, Percentage of Principal Amount Redeemed | 104.75% | ||||||||||||
March 15, 2019 through March 14, 2020 [Member] | |||||||||||||
Debt Instrument [Line Items] | |||||||||||||
Debt Instrument, Redemption Price, Percentage of Principal Amount Redeemed | 102.375% | ||||||||||||
After March 15, 2020 [Member] | |||||||||||||
Debt Instrument [Line Items] | |||||||||||||
Debt Instrument, Redemption Price, Percentage of Principal Amount Redeemed | 100.00% | ||||||||||||
March 31, 2017 through March 31, 2018 [Member] | |||||||||||||
Debt Instrument [Line Items] | |||||||||||||
Debt Instrument, Redemption Price, Percentage of Principal Amount Redeemed | 0.00% | ||||||||||||
March 31, 2018 through March 31, 2019 [Member] | |||||||||||||
Debt Instrument [Line Items] | |||||||||||||
Debt Instrument, Redemption Price, Percentage of Principal Amount Redeemed | 103.00% | ||||||||||||
After March 31, 2019 [Member] | |||||||||||||
Debt Instrument [Line Items] | |||||||||||||
Debt Instrument, Redemption Price, Percentage of Principal Amount Redeemed | 0.00% | ||||||||||||
Mandatory Payment [Member] | 1st Lien Agreement [Member] | |||||||||||||
Debt Instrument [Line Items] | |||||||||||||
Repayments of Long-term Debt | $ 6,250,000 |
Debt Schedule of Payments (Deta
Debt Schedule of Payments (Details) - USD ($) $ in Thousands | 3 Months Ended | 9 Months Ended | ||||||||
Sep. 27, 2015 | Jun. 28, 2015 | Mar. 29, 2015 | Dec. 28, 2014 | Sep. 28, 2014 | Jun. 29, 2014 | Mar. 30, 2014 | Dec. 29, 2013 | Jun. 28, 2015 | Jun. 29, 2014 | |
Schedule Of Debt Payments [Line Items] | ||||||||||
Repayments of Long-term Debt | $ 64,750 | $ 832,500 | ||||||||
1st Lien Agreement [Member] | ||||||||||
Schedule Of Debt Payments [Line Items] | ||||||||||
Repayments of Long-term Debt | $ 10,000 | $ 6,500 | ||||||||
New 1st Lien Term Loan [Member] | ||||||||||
Schedule Of Debt Payments [Line Items] | ||||||||||
Repayments of Long-term Debt | $ 14,150 | $ 10,250 | $ 10,250 | $ 11,250 | $ 6,250 | $ 17,000 | ||||
Mandatory Payment [Member] | 1st Lien Agreement [Member] | ||||||||||
Schedule Of Debt Payments [Line Items] | ||||||||||
Repayments of Long-term Debt | 3,000 | 3,000 | ||||||||
Mandatory Payment [Member] | New 1st Lien Term Loan [Member] | ||||||||||
Schedule Of Debt Payments [Line Items] | ||||||||||
Repayments of Long-term Debt | 6,250 | 6,250 | 6,250 | 6,250 | 6,250 | 6,250 | ||||
Voluntary Payment [Member] | 1st Lien Agreement [Member] | ||||||||||
Schedule Of Debt Payments [Line Items] | ||||||||||
Repayments of Long-term Debt | 5,500 | 3,350 | ||||||||
Voluntary Payment [Member] | New 1st Lien Term Loan [Member] | ||||||||||
Schedule Of Debt Payments [Line Items] | ||||||||||
Repayments of Long-term Debt | 0 | 4,000 | 4,000 | 5,000 | 0 | 10,750 | ||||
Excess Cash Flow Sweep [Member] | 1st Lien Agreement [Member] | ||||||||||
Schedule Of Debt Payments [Line Items] | ||||||||||
Repayments of Long-term Debt | 1,500 | 150 | ||||||||
Excess Cash Flow Sweep [Member] | New 1st Lien Term Loan [Member] | ||||||||||
Schedule Of Debt Payments [Line Items] | ||||||||||
Repayments of Long-term Debt | 7,900 | 0 | 0 | 0 | ||||||
Payment Due To Asset Sale [Member] | 1st Lien Agreement [Member] | ||||||||||
Schedule Of Debt Payments [Line Items] | ||||||||||
Repayments of Long-term Debt | $ 0 | $ 0 | ||||||||
Payment Due To Asset Sale [Member] | New 1st Lien Term Loan [Member] | ||||||||||
Schedule Of Debt Payments [Line Items] | ||||||||||
Repayments of Long-term Debt | $ 0 | $ 0 | $ 0 | $ 0 | $ 0 | $ 0 |
Debt Schedule Of Financing Fees
Debt Schedule Of Financing Fees (Details) - USD ($) | 1 Months Ended | 2 Months Ended | 3 Months Ended | 4 Months Ended | 9 Months Ended | 12 Months Ended | ||||
Jan. 30, 2012 | Feb. 18, 2009 | Dec. 30, 2012 | Jan. 30, 2012 | Jun. 28, 2015 | Sep. 28, 2014 | Mar. 29, 2015 | Mar. 31, 2014 | Mar. 30, 2014 | Mar. 31, 2013 | |
Schedule Of Financing Fees [Line Items] | ||||||||||
Refinancing fee, Prepayment Penalty | $ 1,750,000 | $ 1,750,000 | ||||||||
Class of Warrant or Right, Outstanding | 6,000,000 | |||||||||
Amortization of Debt Issue Costs- Refinance | $ 10,549,000 | 10,549,000 | ||||||||
Refinancing Costs- Cash Fees Paid | 24,181,000 | |||||||||
Unamortized Debt Issuance Expense | 32,907,000 | |||||||||
Amortization Of Present Value Discount- Current Fiscal Year | 4,009,000 | |||||||||
Amortization Of Present Value Discount- Next Fiscal Year | 4,205,000 | |||||||||
Amortization Of Present Value Discount- Year 3 | 4,393,000 | |||||||||
Amortization Of Present Value Discount- Year 4 | 4,518,000 | |||||||||
Amortization Of Present Value Discount- Year 5 | $ 4,277,000 | |||||||||
Debt Instrument, Unamortized Discount | $ 5,000,000 | |||||||||
Investment Warrants, Exercise Price | $ 4.19 | |||||||||
Warrant liability fair value | $ 11,119,800 | 10,808,000 | $ 10,029,000 | 16,930,000 | $ 16,930,000 | $ 16,930,000 | ||||
Gains (Losses) on Extinguishment of Debt | $ 20,591,000 | |||||||||
Deferred Finance Costs, Gross | 37,819,000 | |||||||||
Pulitzer Notes [Member] | ||||||||||
Schedule Of Financing Fees [Line Items] | ||||||||||
Long Term Debt, Principal Payments | $ 5,000,000 | $ 120,000,000 | $ 10,145,000 | $ 15,145,000 | ||||||
Debt Instrument, Unamortized Discount | $ 3,500,000 | $ 3,500,000 | ||||||||
New 1st Lien Term Loan [Member] | ||||||||||
Schedule Of Financing Fees [Line Items] | ||||||||||
Debt Financing and Reorganization Costs Paid | $ 30,931,000 | |||||||||
Debt Instrument, Unamortized Discount | $ 5,000,000 |
Pension, Postretirement, and 32
Pension, Postretirement, and Postemployement Obligations (Details) - USD ($) | 3 Months Ended | 9 Months Ended | ||
Jun. 28, 2015 | Jun. 29, 2014 | Jun. 28, 2015 | Jun. 29, 2014 | |
Defined Benefit Plans and Other Postretirement Benefit Plans Table Text Block [Line Items] | ||||
Defined Benefit Plan, Estimated Future Employer Contributions in Current Fiscal Year | $ 2,818,000 | |||
Pension Plans, Defined Benefit [Member] | ||||
Defined Benefit Plans and Other Postretirement Benefit Plans Table Text Block [Line Items] | ||||
Defined Benefit Plan, Service Cost | $ 226,000 | $ 39,000 | 678,000 | $ 117,000 |
Defined Benefit Plan, Interest Cost | 1,859,000 | 1,999,000 | 5,577,000 | 5,997,000 |
Defined Benefit Plan, Expected Return on Plan Assets | 2,466,000 | 2,483,000 | (7,398,000) | (7,449,000) |
Defined Benefit Plan, Amortization of Net Gains (Losses) | 420,000 | 106,000 | 1,260,000 | 318,000 |
Defined Benefit Plan, Amortization of Net Prior Service Cost (Credit) | 34,000 | 34,000 | (102,000) | (102,000) |
Defined Benefit Plan, Net Periodic Benefit Cost | 5,000 | (373,000) | 15,000 | (1,119,000) |
Other Postretirement Benefit Plans, Defined Benefit [Member] | ||||
Defined Benefit Plans and Other Postretirement Benefit Plans Table Text Block [Line Items] | ||||
Defined Benefit Plan, Estimated Future Employer Contributions in Current Fiscal Year | 0 | |||
Defined Benefit Plan, Service Cost | 39,000 | 149,000 | 117,000 | 447,000 |
Defined Benefit Plan, Interest Cost | 211,000 | 228,000 | 633,000 | 684,000 |
Defined Benefit Plan, Expected Return on Plan Assets | (361,000) | (371,000) | (1,083,000) | (1,113,000) |
Defined Benefit Plan, Amortization of Net Gains (Losses) | (347,000) | (455,000) | (1,041,000) | (1,365,000) |
Defined Benefit Plan, Amortization of Net Prior Service Cost (Credit) | (365,000) | (365,000) | (1,095,000) | (1,095,000) |
Defined Benefit Plan, Net Periodic Benefit Cost | $ (823,000) | $ (814,000) | $ (2,469,000) | $ (2,442,000) |
Income Taxes (Details)
Income Taxes (Details) - USD ($) | 3 Months Ended | 9 Months Ended | ||
Jun. 28, 2015 | Jun. 29, 2014 | Jun. 28, 2015 | Jun. 29, 2014 | |
Income tax expense (benefit) | $ 2,141,000 | $ (4,882,000) | $ 9,353,000 | $ 3,995,000 |
Income (Loss) from Continuing Operations before Income Taxes, Domestic | $ 4,276,000 | $ (14,393,000) | $ 23,537,000 | $ 8,290,000 |
Effective Income Tax Rate Reconciliation, Percent | 50.10% | 33.90% | 39.70% | 48.20% |
Income Taxes Paid | $ 1,000 | $ 173,000 | ||
Proceeds from Income Tax Refunds | $ 236,000 |
Earnings per Common Share (Deta
Earnings per Common Share (Details) - USD ($) $ / shares in Units, $ in Thousands | 3 Months Ended | 9 Months Ended | ||
Jun. 28, 2015 | Jun. 29, 2014 | Jun. 28, 2015 | Jun. 29, 2014 | |
Earnings Per Share Disclosure [Line Items] | ||||
Income (loss) attributable to Lee Enterprises, Incorporated | $ 1,882 | $ (9,746) | $ 13,435 | $ 3,632 |
Weighted Average Number of Shares Outstanding, Basic [Abstract] | ||||
Weighted Average Common Shares | 54,642,000 | |||
Less non-vested restricted Common Stock | (2,045,000) | |||
Basic average common shares | 52,597,000 | |||
Weighted Average Number of Shares Outstanding, Diluted [Abstract] | ||||
Weighted Average Number Diluted Shares Outstanding Adjustment | 1,459,000 | |||
Weighted Average Number of Shares Outstanding, Diluted | 54,056,000 | |||
Earnings Per Share, Basic | $ 0.04 | $ (0.19) | $ 0.26 | $ 0.07 |
Diluted | $ 0.03 | $ (0.19) | $ 0.25 | $ 0.07 |
Antidilutive Securities Excluded from Computation of Earnings Per Share, Amount | 6,116,000 | 6,814,000 | 2,107,000 |
Stock Ownership Plans (Details)
Stock Ownership Plans (Details) - Jun. 28, 2015 - USD ($) $ / shares in Units, shares in Thousands | Total |
Restricted Stock [Member] | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |
Share-based Compensation Arrangement by Share-based Payment Award, Options, Grants in Period, Gross | 786 |
Share-based Compensation Arrangements by Share-based Payment Award, Options, Grants in Period, Weighted Average Exercise Price | $ 3.62 |
Share-based Compensation Arrangement by Share-based Payment Award, Options, Outstanding, Number | 1,291 |
Share-based Compensation Arrangement by Share-based Payment Award, Options, Expirations in Period | (15) |
Share-based Compensation Arrangements by Share-based Payment Award, Options, Forfeitures in Period, Weighted Average Exercise Price | $ 3.62 |
Share-based Compensation Arrangement by Share-based Payment Award, Options, Outstanding, Number | 2,062 |
Share-based Compensation Arrangement by Share-based Payment Award, Options, Outstanding, Weighted Average Exercise Price | $ 2.72 |
Share-based Compensation Arrangement by Share-based Payment Award, Options, Outstanding, Weighted Average Exercise Price | $ 3.06 |
Employee Service Share-based Compensation, Nonvested Awards, Total Compensation Cost Not yet Recognized, Stock Options | $ 3,691,000 |
Employee Service Share-based Compensation, Nonvested Awards, Total Compensation Cost Not yet Recognized, Period for Recognition | 1 year 6 months |
Stock Options [Member] | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |
Share-based Compensation Arrangement by Share-based Payment Award, Options, Outstanding, Weighted Average Remaining Contractual Term | 5 years 6 months 24 days |
Share-based Compensation Arrangement by Share-based Payment Award, Options, Vested and Expected to Vest, Outstanding, Weighted Average Remaining Contractual Term | 5 years 9 months 18 days |
Share-based Compensation Arrangement by Share-based Payment Award, Options, Outstanding, Number | 2,333 |
Share-based Compensation Arrangement by Share-based Payment Award, Options, Expirations in Period | (104) |
Share-based Compensation Arrangement by Share-based Payment Award, Options, Outstanding, Number | 2,078 |
Share-based Compensation Arrangement by Share-based Payment Award, Options, Vested and Expected to Vest, Outstanding, Number | 1,993 |
Share-based Compensation Arrangement by Share-based Payment Award, Options, Outstanding, Weighted Average Exercise Price | $ 2.70 |
Share-based Compensation Arrangements by Share-based Payment Award, Options, Expirations in Period, Weighted Average Exercise Price | 6.61 |
Share-based Compensation Arrangement by Share-based Payment Award, Options, Outstanding, Weighted Average Exercise Price | 2.60 |
Share-based Compensation Arrangement by Share-based Payment Award, Options, Vested and Expected to Vest, Outstanding, Weighted Average Exercise Price | $ 2.65 |
Share-based Compensation Arrangement by Share-based Payment Award, Options, Outstanding, Intrinsic Value | $ 3,144,000 |
Share-based Compensation Arrangement by Share-based Payment Award, Options, Exercisable, Intrinsic Value | 2,998,000 |
Employee Service Share-based Compensation, Nonvested Awards, Total Compensation Cost Not yet Recognized, Stock Options | $ 25,000 |
Employee Service Share-based Compensation, Nonvested Awards, Total Compensation Cost Not yet Recognized, Period for Recognition | 6 months |
Share-based Compensation Arrangement by Share-based Payment Award, Options, Exercises in Period | 151 |
Share-based Compensation Arrangements by Share-based Payment Award, Options, Exercises in Period, Weighted Average Exercise Price | $ 1.36 |
Fair Value Measurements Fair Va
Fair Value Measurements Fair Value Measurements (Details) - USD ($) | Jun. 28, 2015 | Mar. 29, 2015 | Sep. 28, 2014 | Mar. 31, 2014 | Mar. 30, 2014 | Mar. 31, 2013 | Feb. 18, 2009 |
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |||||||
Debt, Long-term and Short-term, Combined Amount | $ 745,000,000 | $ 804,750,000 | |||||
Warrant liability fair value | $ 11,119,800 | $ 10,029,000 | 10,808,000 | $ 16,930,000 | $ 16,930,000 | $ 16,930,000 | |
Fair Value, Inputs, Level 3 [Member] | |||||||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |||||||
Obligations, Fair Value Disclosure | 300,000 | $ 2,300,000 | |||||
1st Lien Agreement [Member] | |||||||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |||||||
Long-term Debt, Fair Value | 195,487,500 | ||||||
Senior Notes [Member] [Member] | |||||||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |||||||
Long-term Debt, Fair Value | 406,750,000 | ||||||
2nd Lien Agreement [Member] | |||||||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |||||||
Long-term Debt, Fair Value | $ 159,375,000 | ||||||
Senior Notes [Member] [Member] | |||||||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |||||||
Debt, Long-term and Short-term, Combined Amount | $ 400,000,000 |
Fair Value Measurements Fair 37
Fair Value Measurements Fair Value Measurements Not Practicable (Details) - USD ($) | Jun. 28, 2015 | Sep. 28, 2014 | Jan. 30, 2012 |
Fair Value, Estimate Not Practicable, Financial Statement Captions [Line Items] | |||
Fair Value, Estimate Not Practicable, Investments | $ 7,359,000 | ||
Debt, Long-term and Short-term, Combined Amount | 745,000,000 | $ 804,750,000 | |
New Pulitzer Notes [Member] | |||
Fair Value, Estimate Not Practicable, Financial Statement Captions [Line Items] | |||
Debt, Long-term and Short-term, Combined Amount | $ 0 | $ 23,000,000 | |
Pulitzer Notes [Member] | |||
Fair Value, Estimate Not Practicable, Financial Statement Captions [Line Items] | |||
Debt, Long-term and Short-term, Combined Amount | $ 126,355,000 |
Commitments and Contingencies (
Commitments and Contingencies (Details) - USD ($) | 3 Months Ended | 9 Months Ended | ||
Jun. 28, 2009 | Jun. 28, 2015 | Sep. 28, 2014 | Feb. 18, 2009 | |
Loss Contingencies [Line Items] | ||||
Pulitzer Step Up Tax Benefit- Amortization Period | 15 years | |||
Noncontrolling Interest Redeemed PDLLC, Percent Redeemed | 5.00% | |||
Heral Value Liability- Liability Input | 10.00% | |||
Hearld Value- Increase in Amortizable Tax Basis | $ 258,000,000 | |||
Fair Value, Inputs, Level 3 [Member] | ||||
Loss Contingencies [Line Items] | ||||
Obligations, Fair Value Disclosure | $ 300,000 | $ 2,300,000 | ||
Herald Value Settlement- Shares | 100,000 | |||
Herald Value Settlement | $ 298,000 |