0001368900 2011-06-26 0001368900 2010-12-31 0001368900 2011-04-01 2011-06-26 0001368900 2011-01-01 2011-06-26 0001368900 2010-04-01 2010-06-30 0001368900 2010-01-01 2010-06-30 0001368900 us-gaap:CommonStockMember 2010-12-31 0001368900 us-gaap:AdditionalPaidInCapitalMember 2010-12-31 0001368900 us-gaap:AccumulatedOtherComprehensiveIncomeMember 2010-12-31 0001368900 us-gaap:RetainedEarningsMember 2010-12-31 0001368900 us-gaap:TreasuryStockMember 2010-12-31 0001368900 us-gaap:NoncontrollingInterestMember 2010-12-31 0001368900 us-gaap:CommonStockMember 2011-06-26 0001368900 us-gaap:AdditionalPaidInCapitalMember 2011-06-26 0001368900 us-gaap:AccumulatedOtherComprehensiveIncomeMember 2011-06-26 0001368900 us-gaap:RetainedEarningsMember 2011-06-26 0001368900 us-gaap:TreasuryStockMember 2011-06-26 0001368900 us-gaap:NoncontrollingInterestMember 2011-06-26 0001368900 us-gaap:AdditionalPaidInCapitalMember 2011-01-01 2011-06-26 0001368900 us-gaap:AccumulatedOtherComprehensiveIncomeMember 2011-01-01 2011-06-26 0001368900 us-gaap:RetainedEarningsMember 2011-01-01 2011-06-26 0001368900 us-gaap:NoncontrollingInterestMember 2011-01-01 2011-06-26 0001368900 2009-12-31 0001368900 us-gaap:TreasuryStockMember 2011-01-01 2011-06-26 0001368900 2010-06-30 0001368900 2011-07-25 iso4217:USD shares iso4217:USD shares

228000

4076000 82000

11249000

3636000

3304000

1576

4000 124000 -348000 0 2014000 -122000

-0.39

-0.09

-0.08

-0.39

-0.09

-0.08

57677799

57915256

57728624

57970413

57677799

57915256

57728624

57970413

6969244 58077031 2011 Q2 false 2011-06-26 10-Q No --01-01 No Yes Smaller Reporting Company 0001368900 GHSE GateHouse Media, Inc.

228000

-1087000

-1502000

12787000

12363000

-22645000

-23259000

-5196000

24827000

26978000

-5067000

-1536000

-747000

271061000

-1270000

-399000

258834000

-791034000

-811174000

65490000

63885000

191000

68000

-101000

1224000

34000

-332000

1140000

2014000

14343000

2014000

14343000

310000

8000000

-22454000

-23191000

-5162000

597000

381000

-5033000

1538000

2079000

152293000

641000

139059000

622000

<div><font style="font-face: Times New Roman" size="2" color="#000000"><b>(14) Discontinued Operations </b></font></div> <div><font style="font-face: Times New Roman" size="3" color="#000000"></font><font style="font-face: Times New Roman" size="2" color="#000000">During the six months ended June 30, 2010, the Company discontinued a publication in New York.  As a result, an impairment loss of $120 is included in loss from discontinued operations on the Statement of Operations for this period.  The net revenue during the six months ended June 30, 2010 for the aforementioned discontinued operation and previously discontinued operations was $92.  Loss before income taxes during the six months ended June 30, 2010 for the aforementioned discontinued operations and previously discontinued operations was $158. </font></div> <div><font style="font-face: Times New Roman" size="3" color="#000000"></font></div>

-1559465000

-1582309000

1181238000

2513000

1181238000

11249000

4000

1000

-311000

-5000

1778000

-2000

23492000

21830000

11631000

101922000

10772000

102636000

<div><font style="font-face: Times New Roman" size="2" color="#000000"><b>(13) Commitments and Contingencies </b></font></div> <div><font style="font-face: Times New Roman" size="3" color="#000000"></font><font style="font-face: Times New Roman" size="2" color="#000000">The Company becomes involved from time to time in claims and lawsuits incidental to the ordinary course of its business, including with respect to matters such as libel, invasion of privacy, intellectual property infringement, wrongful termination actions, and complaints alleging employment discrimination. In addition, the Company is involved from time to time in governmental and administrative proceedings concerning employment, labor, environmental and other claims. Insurance coverage maintained by the Company mitigates potential loss for certain of these matters. Historically, such claims and proceedings have not had a material effect upon the Company's condensed consolidated results of operations or financial condition. While the Company is unable to predict the ultimate outcome of any currently outstanding legal actions, it is the opinion of the Company's management that it is a remote possibility that the disposition of these matters would have a material adverse effect upon the Company's condensed consolidated results of operations, financial condition or cash flows. </font></div> <div><font style="font-face: Times New Roman" size="3" color="#000000"></font><font style="font-face: Times New Roman" size="2" color="#000000">Restricted cash at June 26, 2011 and December 31, 2010 consists of certificates of deposit, having maturities of less than three months, in the aggregate amount of $5,182. These amounts are used to collateralize standby letters of credit in the name of the Company's insurers in accordance with certain insurance policies. </font></div> <div><font style="font-face: Times New Roman" size="3" color="#000000"></font></div>

-62614000

-60361000

-5356000

-421000

5146000

-2559000

4713000

-41000

82622000

76716000

40324000

7253000

38564000

7187000

<div><font style="font-face: Times New Roman" size="2" color="#000000"><b>(12) Fair Value Measurement </b></font></div> <div><font style="font-face: Times New Roman" size="3" color="#000000"></font><font style="font-face: Times New Roman" size="2" color="#000000">Fair value measurements and disclosures require the use of valuation techniques to measure fair value that maximize the use of observable inputs and minimize the use of unobservable inputs. These inputs are prioritized as follows: </font></div> <div><font style="font-face: Times New Roman" size="3" color="#000000"></font><font style="font-face: Times New Roman" size="1" color="#000000"> </font></div> <div><font style="font-face: Times New Roman" size="1" color="#000000"></font></div> <table border="0" cellspacing="0" cellpadding="0"> <tr> <td width="31"><div><font style="font-face: Times New Roman" size="1" color="#000000"> </font></div></td> <td width="12"><div><font style="font-face: Times New Roman" size="2" color="#000000"></font></div></td> <td width="6"><div><font style="font-face: Times New Roman" size="1" color="#000000"> </font></div></td> <td width="580"><div><font style="font-face: Times New Roman" size="2" color="#000000">Level 1: Observable inputs such as quoted prices in active markets for identical assets or liabilities. </font></div></td> </tr> </table> <div><font style="font-face: Times New Roman" size="1" color="#000000"> </font></div> <div><font style="font-face: Times New Roman" size="1" color="#000000"></font></div> <table border="0" cellspacing="0" cellpadding="0"> <tr> <td width="31"><div><font style="font-face: Times New Roman" size="1" color="#000000"> </font></div></td> <td width="12"><div><font style="font-face: Times New Roman" size="2" color="#000000"></font></div></td> <td width="6"><div><font style="font-face: Times New Roman" size="1" color="#000000"> </font></div></td> <td width="580"><div><font style="font-face: Times New Roman" size="2" color="#000000">Level 2: Inputs other than quoted prices included within Level 1 that are observable, either directly or indirectly, such as quoted prices for similar assets or liabilities or market corroborated inputs. </font></div></td> </tr> </table> <div><font style="font-face: Times New Roman" size="1" color="#000000"> </font></div> <div><font style="font-face: Times New Roman" size="3" color="#000000"></font></div> <table border="0" cellspacing="0" cellpadding="0"> <tr> <td width="31"><div><font style="font-face: Times New Roman" size="1" color="#000000"> </font></div></td> <td width="12"><div><font style="font-face: Times New Roman" size="2" color="#000000"></font></div></td> <td width="6"><div><font style="font-face: Times New Roman" size="1" color="#000000"> </font></div></td> <td width="580"><div><font style="font-face: Times New Roman" size="2" color="#000000">Level 3: Unobservable inputs for which there is little or no market data and which require the Company to develop our own assumptions about how market participants price the asset or liability. </font></div></td> </tr> </table> <div><font style="font-face: Times New Roman" size="2" color="#000000">The valuation techniques that may be used to measure fair value are as follows: </font></div> <div><font style="font-face: Times New Roman" size="3" color="#000000"></font><font style="font-face: Times New Roman" size="1" color="#000000"> </font></div> <div><font style="font-face: Times New Roman" size="1" color="#000000"></font></div> <table border="0" cellspacing="0" cellpadding="0"> <tr> <td width="31"><div><font style="font-face: Times New Roman" size="1" color="#000000"> </font></div></td> <td width="12"><div><font style="font-face: Times New Roman" size="2" color="#000000"></font></div></td> <td width="6"><div><font style="font-face: Times New Roman" size="1" color="#000000"> </font></div></td> <td width="580"><div><font style="font-face: Times New Roman" size="2" color="#000000">Market approach - Uses prices and other relevant information generated by market transactions involving identical or comparable assets or liabilities. </font></div></td> </tr> </table> <div><font style="font-face: Times New Roman" size="1" color="#000000"> </font></div> <div><font style="font-face: Times New Roman" size="1" color="#000000"></font></div> <table border="0" cellspacing="0" cellpadding="0"> <tr> <td width="31"><div><font style="font-face: Times New Roman" size="1" color="#000000"> </font></div></td> <td width="12"><div><font style="font-face: Times New Roman" size="2" color="#000000"></font></div></td> <td width="6"><div><font style="font-face: Times New Roman" size="1" color="#000000"> </font></div></td> <td width="580"><div><font style="font-face: Times New Roman" size="2" color="#000000">Income approach - Uses valuation techniques to convert future amounts to a single present amount based on current market expectation about those future amounts. </font></div></td> </tr> </table> <div><font style="font-face: Times New Roman" size="1" color="#000000"> </font></div> <div><font style="font-face: Times New Roman" size="1" color="#000000"></font></div> <table border="0" cellspacing="0" cellpadding="0"> <tr> <td width="31"><div><font style="font-face: Times New Roman" size="1" color="#000000"> </font></div></td> <td width="12"><div><font style="font-face: Times New Roman" size="2" color="#000000"></font></div></td> <td width="6"><div><font style="font-face: Times New Roman" size="1" color="#000000"> </font></div></td> <td width="580"><div><font style="font-face: Times New Roman" size="2" color="#000000">Cost approach - Based on the amount that currently would be required to replace the service capacity of an asset (replacement cost). </font></div></td> </tr> </table> <div><font style="font-face: Times New Roman" size="2" color="#000000">The following tables provide fair value measurement information for each class of financial assets and liabilities measured on a recurring basis for the periods presented: </font></div> <div><font style="font-face: Times New Roman" size="3" color="#000000"></font><font style="font-face: Times New Roman" size="2" color="#000000"> </font></div> <div><font style="font-face: Times New Roman" size="2" color="#000000"></font></div> <table border="0" cellspacing="0" cellpadding="0"> <tr> <td width="149"><div> </div></td> <td width="22"><div> </div></td> <td width="22"><div> </div></td> <td width="59"><div> </div></td> <td width="6"><div> </div></td> <td width="22"><div> </div></td> <td width="20"><div> </div></td> <td width="54"><div> </div></td> <td width="6"><div> </div></td> <td width="22"><div> </div></td> <td width="10"><div> </div></td> <td width="49"><div> </div></td> <td width="6"><div> </div></td> <td width="22"><div> </div></td> <td width="11"><div> </div></td> <td width="60"><div> </div></td> <td width="6"><div> </div></td> <td width="22"><div> </div></td> <td width="3"><div> </div></td> <td width="42"><div> </div></td> <td width="6"><div> </div></td> </tr> <tr> <td width="149"><div><font style="font-face: Times New Roman" size="1" color="#000000"> </font></div></td> <td width="22"><div><font style="font-face: Times New Roman" size="1" color="#000000">  </font></div></td> <td colspan="10" width="275"><div align="center"><font style="font-face: Times New Roman" size="1" color="#000000"><b>Fair Value Measurements at Reporting Date Using</b></font></div></td> <td width="6"><div><font style="font-face: Times New Roman" size="1" color="#000000"> </font></div></td> <td width="22"><div><font style="font-face: Times New Roman" size="1" color="#000000">  </font></div></td> <td colspan="2" width="71"><div><font style="font-face: Times New Roman" size="1" color="#000000"> </font></div></td> <td width="6"><div><font style="font-face: Times New Roman" size="1" color="#000000"> </font></div></td> <td width="22"><div><font style="font-face: Times New Roman" size="1" color="#000000">  </font></div></td> <td colspan="2" width="45"><div><font style="font-face: Times New Roman" size="1" color="#000000"> </font></div></td> <td width="6"><div><font style="font-face: Times New Roman" size="1" color="#000000"> </font></div></td> </tr> <tr> <td width="149"><div><font style="font-face: Times New Roman" size="1" color="#000000"> </font></div></td> <td width="22"><div><font style="font-face: Times New Roman" size="1" color="#000000">  </font></div></td> <td colspan="2" width="82"><div align="center"><font style="font-face: Times New Roman" size="1" color="#000000"><b>Quoted Prices in</b></font></div><div align="center"><font style="font-face: Times New Roman" size="1" color="#000000"><b>Active Markets for</b></font></div><div align="center"><font style="font-face: Times New Roman" size="1" color="#000000"><b>Identical Assets</b></font></div><div align="center"><font style="font-face: Times New Roman" size="1" color="#000000"><b>(Level 1)</b></font></div></td> <td width="6"><div><font style="font-face: Times New Roman" size="1" color="#000000"> </font></div></td> <td width="22"><div><font style="font-face: Times New Roman" size="1" color="#000000">  </font></div></td> <td colspan="2" width="75"><div align="center"><font style="font-face: Times New Roman" size="1" color="#000000"><b>Significant Other</b></font></div><div align="center"><font style="font-face: Times New Roman" size="1" color="#000000"><b>Observable</b></font></div><div align="center"><font style="font-face: Times New Roman" size="1" color="#000000"><b>Inputs</b></font></div><div align="center"><font style="font-face: Times New Roman" size="1" color="#000000"><b>(Level 2)</b></font></div></td> <td width="6"><div><font style="font-face: Times New Roman" size="1" color="#000000"> </font></div></td> <td width="22"><div><font style="font-face: Times New Roman" size="1" color="#000000">  </font></div></td> <td colspan="2" width="59"><div align="center"><font style="font-face: Times New Roman" size="1" color="#000000"><b>Significant</b></font></div><div align="center"><font style="font-face: Times New Roman" size="1" color="#000000"><b>Unobservable</b></font></div><div align="center"><font style="font-face: Times New Roman" size="1" color="#000000"><b>Inputs</b></font></div><div align="center"><font style="font-face: Times New Roman" size="1" color="#000000"><b>(Level 3)</b></font></div></td> <td width="6"><div><font style="font-face: Times New Roman" size="1" color="#000000"> </font></div></td> <td width="22"><div><font style="font-face: Times New Roman" size="1" color="#000000">  </font></div></td> <td colspan="2" width="71"><div align="center"><font style="font-face: Times New Roman" size="1" color="#000000"><b>Total Fair Value</b></font></div><div align="center"><font style="font-face: Times New Roman" size="1" color="#000000"><b>Measurements</b></font></div></td> <td width="6"><div><font style="font-face: Times New Roman" size="1" color="#000000"> </font></div></td> <td width="22"><div><font style="font-face: Times New Roman" size="1" color="#000000">  </font></div></td> <td colspan="2" width="45"><div align="center"><font style="font-face: Times New Roman" size="1" color="#000000"><b>Valuation</b></font></div><div align="center"><font style="font-face: Times New Roman" size="3" color="#000000"></font><font style="font-face: Times New Roman" size="1" color="#000000"><b>Technique</b></font></div></td> <td width="6"><div><font style="font-face: Times New Roman" size="1" color="#000000"> </font></div></td> </tr> <tr> <td width="149" bgcolor="#cceeff"><div><font style="font-face: Times New Roman" size="2" color="#000000">Liabilities</font></div></td> <td width="22" bgcolor="#cceeff"><div><font style="font-face: Times New Roman" size="1" color="#000000">  </font></div></td> <td width="22" bgcolor="#cceeff"><div> </div></td> <td width="59" bgcolor="#cceeff"><div> </div></td> <td width="6" bgcolor="#cceeff"><div> </div></td> <td width="22" bgcolor="#cceeff"><div><font style="font-face: Times New Roman" size="1" color="#000000">  </font></div></td> <td width="20" bgcolor="#cceeff"><div> </div></td> <td width="54" bgcolor="#cceeff"><div> </div></td> <td width="6" bgcolor="#cceeff"><div> </div></td> <td width="22" bgcolor="#cceeff"><div><font style="font-face: Times New Roman" size="1" color="#000000">  </font></div></td> <td width="10" bgcolor="#cceeff"><div> </div></td> <td width="49" bgcolor="#cceeff"><div> </div></td> <td width="6" bgcolor="#cceeff"><div> </div></td> <td width="22" bgcolor="#cceeff"><div><font style="font-face: Times New Roman" size="1" color="#000000">  </font></div></td> <td width="11" bgcolor="#cceeff"><div> </div></td> <td width="60" bgcolor="#cceeff"><div> </div></td> <td width="6" bgcolor="#cceeff"><div> </div></td> <td width="22" bgcolor="#cceeff"><div><font style="font-face: Times New Roman" size="1" color="#000000">  </font></div></td> <td width="3" bgcolor="#cceeff"><div> </div></td> <td width="42" bgcolor="#cceeff"><div> </div></td> <td width="6" bgcolor="#cceeff"><div> </div></td> </tr> <tr> <td width="149"><div><font style="font-face: Times New Roman" size="2" color="#000000">Derivatives as of December 31, 2010 (1)</font></div></td> <td width="22"><div><font style="font-face: Times New Roman" size="1" color="#000000">  </font></div></td> <td width="22"><div><font style="font-face: Times New Roman" size="2" color="#000000">$</font></div></td> <td width="59"><div align="right"><font style="font-face: Times New Roman" size="2" color="#000000">  </font></div></td> <td width="6"><div><font style="font-face: Times New Roman" size="2" color="#000000">  </font></div></td> <td width="22"><div><font style="font-face: Times New Roman" size="1" color="#000000">  </font></div></td> <td width="20"><div><font style="font-face: Times New Roman" size="2" color="#000000">$</font></div></td> <td width="54"><div align="right"><font style="font-face: Times New Roman" size="2" color="#000000">  </font></div></td> <td width="6"><div><font style="font-face: Times New Roman" size="2" color="#000000">  </font></div></td> <td width="22"><div><font style="font-face: Times New Roman" size="1" color="#000000">  </font></div></td> <td width="10"><div><font style="font-face: Times New Roman" size="2" color="#000000">$</font></div></td> <td width="49"><div align="right"><font style="font-face: Times New Roman" size="2" color="#000000">65,490</font></div></td> <td width="6"><div><font style="font-face: Times New Roman" size="2" color="#000000">  </font></div></td> <td width="22"><div><font style="font-face: Times New Roman" size="1" color="#000000">  </font></div></td> <td width="11"><div><font style="font-face: Times New Roman" size="2" color="#000000">$</font></div></td> <td width="60"><div align="right"><font style="font-face: Times New Roman" size="2" color="#000000">65,490</font></div></td> <td width="6"><div><font style="font-face: Times New Roman" size="2" color="#000000">  </font></div></td> <td width="22"><div><font style="font-face: Times New Roman" size="1" color="#000000">  </font></div></td> <td width="3"><div><font style="font-face: Times New Roman" size="2" color="#000000"> </font></div></td> <td width="42"><div align="right"><font style="font-face: Times New Roman" size="2" color="#000000">Income</font></div></td> <td width="6"><div><font style="font-face: Times New Roman" size="2" color="#000000">  </font></div></td> </tr> <tr> <td width="149" bgcolor="#cceeff"><div><font style="font-face: Times New Roman" size="2" color="#000000">Derivatives as of June 26, 2011 (1)</font></div></td> <td width="22" bgcolor="#cceeff"><div><font style="font-face: Times New Roman" size="1" color="#000000">  </font></div></td> <td width="22" bgcolor="#cceeff"><div><font style="font-face: Times New Roman" size="2" color="#000000"> </font></div></td> <td width="59" bgcolor="#cceeff"><div align="right"><font style="font-face: Times New Roman" size="2" color="#000000">  </font></div></td> <td width="6" bgcolor="#cceeff"><div><font style="font-face: Times New Roman" size="2" color="#000000">  </font></div></td> <td width="22" bgcolor="#cceeff"><div><font style="font-face: Times New Roman" size="1" color="#000000">  </font></div></td> <td width="20" bgcolor="#cceeff"><div><font style="font-face: Times New Roman" size="2" color="#000000"> </font></div></td> <td width="54" bgcolor="#cceeff"><div align="right"><font style="font-face: Times New Roman" size="2" color="#000000">  </font></div></td> <td width="6" bgcolor="#cceeff"><div><font style="font-face: Times New Roman" size="2" color="#000000">  </font></div></td> <td width="22" bgcolor="#cceeff"><div><font style="font-face: Times New Roman" size="1" color="#000000">  </font></div></td> <td width="10" bgcolor="#cceeff"><div><font style="font-face: Times New Roman" size="2" color="#000000"> </font></div></td> <td width="49" bgcolor="#cceeff"><div align="right"><font style="font-face: Times New Roman" size="2" color="#000000">63,885</font></div></td> <td width="6" bgcolor="#cceeff"><div><font style="font-face: Times New Roman" size="2" color="#000000">  </font></div></td> <td width="22" bgcolor="#cceeff"><div><font style="font-face: Times New Roman" size="1" color="#000000">  </font></div></td> <td width="11" bgcolor="#cceeff"><div><font style="font-face: Times New Roman" size="2" color="#000000"> </font></div></td> <td width="60" bgcolor="#cceeff"><div align="right"><font style="font-face: Times New Roman" size="2" color="#000000">63,885</font></div></td> <td width="6" bgcolor="#cceeff"><div><font style="font-face: Times New Roman" size="2" color="#000000">  </font></div></td> <td width="22" bgcolor="#cceeff"><div><font style="font-face: Times New Roman" size="1" color="#000000">  </font></div></td> <td width="3" bgcolor="#cceeff"><div><font style="font-face: Times New Roman" size="2" color="#000000"> </font></div></td> <td width="42" bgcolor="#cceeff"><div align="right"><font style="font-face: Times New Roman" size="2" color="#000000">Income</font></div></td> <td width="6" bgcolor="#cceeff"><div><font style="font-face: Times New Roman" size="2" color="#000000">  </font></div></td> </tr> </table> <div><font style="font-face: Times New Roman" size="2" color="#000000"> </font></div> <div><font style="font-face: Times New Roman" size="2" color="#000000"></font></div> <table border="0" cellspacing="0" cellpadding="0"> <tr> <td width="25"><div><font style="font-face: Times New Roman" size="2" color="#000000">(1)</font></div></td> <td width="605"><div><font style="font-face: Times New Roman" size="2" color="#000000">Derivative assets and liabilities consist of interest rate swaps which are measured using the Company's estimates of the assumptions a market participant would use in pricing the derivative. The fair value of the interest rate derivative is determined based on the upper notional band using cash flows discounted at the relevant market interest rates in effect at the period close and incorporates an assessment of the risk of non-performance by the interest rate derivative counterparty in valuing derivative assets and an evaluation of the Company's credit risk in valuing derivative liabilities. </font></div></td> </tr> </table> <div><font style="font-face: Times New Roman" size="2" color="#000000">The following tables reflect the activity of our derivative liabilities measured at fair value using significant unobservable inputs (Level 3) for the six months ended June 26, 2011: </font></div> <div><font style="font-face: Times New Roman" size="3" color="#000000"></font><font style="font-face: Times New Roman" size="2" color="#000000"> </font></div> <div><font style="font-face: Times New Roman" size="2" color="#000000"></font></div> <table border="0" cellspacing="0" cellpadding="0"> <tr> <td width="348"><div> </div></td> <td width="27"><div> </div></td> <td width="6"><div> </div></td> <td width="38"><div> </div></td> <td width="7"><div> </div></td> </tr> <tr> <td width="348"><div><font style="font-face: Times New Roman" size="1" color="#000000"> </font></div></td> <td width="27"><div><font style="font-face: Times New Roman" size="1" color="#000000">  </font></div></td> <td colspan="2" width="44"><div align="center"><font style="font-face: Times New Roman" size="1" color="#000000"><b>Derivative</b></font></div><div align="center"><font style="font-face: Times New Roman" size="1" color="#000000"><b>Liabilities</b></font></div></td> <td width="7"><div><font style="font-face: Times New Roman" size="1" color="#000000"> </font></div></td> </tr> <tr> <td width="348" bgcolor="#cceeff"><div><font style="font-face: Times New Roman" size="2" color="#000000">Balance as of December 31, 2010</font></div></td> <td width="27" bgcolor="#cceeff"><div><font style="font-face: Times New Roman" size="1" color="#000000">  </font></div></td> <td width="6" bgcolor="#cceeff"><div><font style="font-face: Times New Roman" size="2" color="#000000">$</font></div></td> <td width="38" bgcolor="#cceeff"><div align="right"><font style="font-face: Times New Roman" size="2" color="#000000">65,490</font></div></td> <td width="7" bgcolor="#cceeff"><div><font style="font-face: Times New Roman" size="2" color="#000000">  </font></div></td> </tr> <tr> <td width="348"><div><font style="font-face: Times New Roman" size="2" color="#000000">Total (gains) losses, net:</font></div></td> <td width="27"><div><font style="font-face: Times New Roman" size="1" color="#000000">  </font></div></td> <td width="6"><div> </div></td> <td width="38"><div> </div></td> <td width="7"><div> </div></td> </tr> <tr> <td width="348" bgcolor="#cceeff"><div><font style="font-face: Times New Roman" size="2" color="#000000">Included in earnings (or changes in net assets)</font></div></td> <td width="27" bgcolor="#cceeff"><div><font style="font-face: Times New Roman" size="1" color="#000000">  </font></div></td> <td width="6" bgcolor="#cceeff"><div><font style="font-face: Times New Roman" size="2" color="#000000"> </font></div></td> <td width="38" bgcolor="#cceeff"><div align="right"><font style="font-face: Times New Roman" size="2" color="#000000">(37</font></div></td> <td width="7" bgcolor="#cceeff"><div><font style="font-face: Times New Roman" size="2" color="#000000">) </font></div></td> </tr> <tr> <td width="348"><div><font style="font-face: Times New Roman" size="2" color="#000000">Included in other comprehensive income</font></div></td> <td width="27"><div><font style="font-face: Times New Roman" size="1" color="#000000">  </font></div></td> <td width="6"><div><font style="font-face: Times New Roman" size="2" color="#000000"> </font></div></td> <td width="38"><div align="right"><font style="font-face: Times New Roman" size="2" color="#000000">(1,568</font></div></td> <td width="7"><div><font style="font-face: Times New Roman" size="2" color="#000000">) </font></div></td> </tr> <tr> <td width="348"><div> </div></td> <td width="27"><div><font style="font-face: Times New Roman" size="1" color="#000000">  </font></div></td> <td width="6"><div><font style="font-face: Times New Roman" size="1" color="#000000"> </font></div></td> <td width="38"><div><font style="font-face: Times New Roman" size="1" color="#000000"> </font></div></td> <td width="7"><div><font style="font-face: Times New Roman" size="1" color="#000000"> </font></div></td> </tr> <tr> <td width="348" bgcolor="#cceeff"><div><font style="font-face: Times New Roman" size="2" color="#000000">Balance as of June 26, 2011</font></div></td> <td width="27" bgcolor="#cceeff"><div><font style="font-face: Times New Roman" size="1" color="#000000">  </font></div></td> <td width="6" bgcolor="#cceeff"><div><font style="font-face: Times New Roman" size="2" color="#000000">$</font></div></td> <td width="38" bgcolor="#cceeff"><div align="right"><font style="font-face: Times New Roman" size="2" color="#000000">63,885</font></div></td> <td width="7" bgcolor="#cceeff"><div><font style="font-face: Times New Roman" size="2" color="#000000">  </font></div></td> </tr> <tr> <td width="348"><div> </div></td> <td width="27"><div><font style="font-face: Times New Roman" size="1" color="#000000">  </font></div></td> <td width="6"><div><font style="font-face: Times New Roman" size="1" color="#000000"> </font></div></td> <td width="38"><div><font style="font-face: Times New Roman" size="1" color="#000000"> </font></div></td> <td width="7"><div><font style="font-face: Times New Roman" size="1" color="#000000"> </font></div></td> </tr> </table> <div><font style="font-face: Times New Roman" size="2" color="#000000">During the six months ended June 26, 2011 and twelve months ended December 31, 2010, the Company recorded an impairment charge in the amount of $318 and $545, respectively, related to property, plant and equipment which were classified as held for sale. The Company used assessed values and current market data, Level 2 inputs, to determine the fair value as of June 26, 2011 and December 31, 2010. Additionally, during the three months ended June 26, 2011, the Company wrote-off presses having a net book value of $1,696 related to the consolidation of its print operations, utilizing recent sale activity, Level 2 inputs.  </font></div> <div><font style="font-face: Times New Roman" size="3" color="#000000"></font></div>

830787000

831238000

75297000

2791000

-1588000

74970000

2424000

3961000

-1502000

-310000

236837

-1582309000

154595000

-60361000

831238000

144666000

77558000

10506000

1536000

568000

58313868

747000

3819000

72204000

<div><font style="font-face: Times New Roman" size="2" color="#000000"><b>(11) Assets Held for Sale </b></font></div> <div><font style="font-face: Times New Roman" size="3" color="#000000"></font><font style="font-face: Times New Roman" size="2" color="#000000">As of June 26, 2011 and December 31, 2010, the Company intended to dispose of various assets which are classified as held for sale on the Condensed Consolidated Balance Sheet in accordance with ASC 360. </font></div> <div><font style="font-face: Times New Roman" size="3" color="#000000"></font><font style="font-face: Times New Roman" size="2" color="#000000">The following table summarizes the major classes of assets and liabilities held for sale at June 26, 2011 and December 31, 2010: </font></div> <div><font style="font-face: Times New Roman" size="3" color="#000000"></font><font style="font-face: Times New Roman" size="2" color="#000000"> </font></div> <div><font style="font-face: Times New Roman" size="2" color="#000000"></font></div> <table border="0" cellspacing="0" cellpadding="0"> <tr> <td width="240"><div> </div></td> <td width="42"><div> </div></td> <td width="10"><div> </div></td> <td width="48"><div> </div></td> <td width="6"><div> </div></td> <td width="42"><div> </div></td> <td width="20"><div> </div></td> <td width="61"><div> </div></td> <td width="6"><div> </div></td> </tr> <tr> <td width="240"><div><font style="font-face: Times New Roman" size="1" color="#000000"> </font></div></td> <td width="42"><div><font style="font-face: Times New Roman" size="1" color="#000000">  </font></div></td> <td colspan="2" width="58"><div align="center"><font style="font-face: Times New Roman" size="1" color="#000000"><b>June 26, 2011</b></font></div></td> <td width="6"><div><font style="font-face: Times New Roman" size="1" color="#000000"> </font></div></td> <td width="42"><div><font style="font-face: Times New Roman" size="1" color="#000000">  </font></div></td> <td colspan="2" width="81"><div align="center"><font style="font-face: Times New Roman" size="1" color="#000000"><b>December 31, 2010</b></font></div></td> <td width="6"><div><font style="font-face: Times New Roman" size="1" color="#000000"> </font></div></td> </tr> <tr> <td width="240" bgcolor="#cceeff"><div><font style="font-face: Times New Roman" size="2" color="#000000">Long-term assets held for sale:</font></div></td> <td width="42" bgcolor="#cceeff"><div><font style="font-face: Times New Roman" size="1" color="#000000">  </font></div></td> <td width="10" bgcolor="#cceeff"><div> </div></td> <td width="48" bgcolor="#cceeff"><div> </div></td> <td width="6" bgcolor="#cceeff"><div> </div></td> <td width="42" bgcolor="#cceeff"><div><font style="font-face: Times New Roman" size="1" color="#000000">  </font></div></td> <td width="20" bgcolor="#cceeff"><div> </div></td> <td width="61" bgcolor="#cceeff"><div> </div></td> <td width="6" bgcolor="#cceeff"><div> </div></td> </tr> <tr> <td width="240"><div><font style="font-face: Times New Roman" size="2" color="#000000">Property, plant and equipment, net</font></div></td> <td width="42"><div><font style="font-face: Times New Roman" size="1" color="#000000">  </font></div></td> <td width="10"><div><font style="font-face: Times New Roman" size="2" color="#000000">$</font></div></td> <td width="48"><div align="right"><font style="font-face: Times New Roman" size="2" color="#000000">3,244</font></div></td> <td width="6"><div><font style="font-face: Times New Roman" size="2" color="#000000">  </font></div></td> <td width="42"><div><font style="font-face: Times New Roman" size="1" color="#000000">  </font></div></td> <td width="20"><div><font style="font-face: Times New Roman" size="2" color="#000000">$</font></div></td> <td width="61"><div align="right"><font style="font-face: Times New Roman" size="2" color="#000000">974</font></div></td> <td width="6"><div><font style="font-face: Times New Roman" size="2" color="#000000">  </font></div></td> </tr> <tr> <td width="240"><div> </div></td> <td width="42"><div><font style="font-face: Times New Roman" size="1" color="#000000">  </font></div></td> <td width="10"><div><font style="font-face: Times New Roman" size="1" color="#000000"> </font></div></td> <td width="48"><div><font style="font-face: Times New Roman" size="1" color="#000000"> </font></div></td> <td width="6"><div><font style="font-face: Times New Roman" size="1" color="#000000"> </font></div></td> <td width="42"><div><font style="font-face: Times New Roman" size="1" color="#000000">  </font></div></td> <td width="20"><div><font style="font-face: Times New Roman" size="1" color="#000000"> </font></div></td> <td width="61"><div><font style="font-face: Times New Roman" size="1" color="#000000"> </font></div></td> <td width="6"><div><font style="font-face: Times New Roman" size="1" color="#000000"> </font></div></td> </tr> <tr> <td width="240" bgcolor="#cceeff"><div><font style="font-face: Times New Roman" size="2" color="#000000">Total long-term assets held for sale</font></div></td> <td width="42" bgcolor="#cceeff"><div><font style="font-face: Times New Roman" size="1" color="#000000">  </font></div></td> <td width="10" bgcolor="#cceeff"><div><font style="font-face: Times New Roman" size="2" color="#000000">$</font></div></td> <td width="48" bgcolor="#cceeff"><div align="right"><font style="font-face: Times New Roman" size="2" color="#000000">3,244</font></div></td> <td width="6" bgcolor="#cceeff"><div><font style="font-face: Times New Roman" size="2" color="#000000">  </font></div></td> <td width="42" bgcolor="#cceeff"><div><font style="font-face: Times New Roman" size="1" color="#000000">  </font></div></td> <td width="20" bgcolor="#cceeff"><div><font style="font-face: Times New Roman" size="2" color="#000000">$</font></div></td> <td width="61" bgcolor="#cceeff"><div align="right"><font style="font-face: Times New Roman" size="2" color="#000000">974</font></div></td> <td width="6" bgcolor="#cceeff"><div><font style="font-face: Times New Roman" size="2" color="#000000">  </font></div></td> </tr> <tr> <td width="240"><div> </div></td> <td width="42"><div><font style="font-face: Times New Roman" size="1" color="#000000">  </font></div></td> <td width="10"><div><font style="font-face: Times New Roman" size="1" color="#000000"> </font></div></td> <td width="48"><div><font style="font-face: Times New Roman" size="1" color="#000000"> </font></div></td> <td width="6"><div><font style="font-face: Times New Roman" size="1" color="#000000"> </font></div></td> <td width="42"><div><font style="font-face: Times New Roman" size="1" color="#000000">  </font></div></td> <td width="20"><div><font style="font-face: Times New Roman" size="1" color="#000000"> </font></div></td> <td width="61"><div><font style="font-face: Times New Roman" size="1" color="#000000"> </font></div></td> <td width="6"><div><font style="font-face: Times New Roman" size="1" color="#000000"> </font></div></td> </tr> </table> <div><font style="font-face: Times New Roman" size="2" color="#000000">These assets are real property and no publication related assets are included. During the second quarter of 2011, a building in Illinois, having a fair value of $2,300, was reclassified to Assets Held for Sale. The sale of this building is anticipated during the third quarter of 2011. </font></div> <div><font style="font-face: Times New Roman" size="3" color="#000000"></font><font style="font-face: Times New Roman" size="2" color="#000000">During the six months ended June 26, 2011 and twelve months ended December 31, 2010 the Company recorded an impairment charge in the amount of $318 and $545, respectively, related to property, plant and equipment which were classified as held for sale, refer to Note 12 for fair value measurement discussion. </font></div> <div><font style="font-face: Times New Roman" size="3" color="#000000"></font></div>

22835000

568000

-22545000

-22844000

-5225000

27348000

-4876000

27729000

680000

532000

340000

546327000

340000

523084000

152000

917000

7731000

6809000

451000

<div><font style="font-face: Times New Roman" size="2" color="#000000"><b>(10) Pension and Postretirement Benefits </b></font></div> <div><font style="font-face: Times New Roman" size="3" color="#000000"></font><font style="font-face: Times New Roman" size="2" color="#000000">The Company maintains a pension plan and several postretirement medical and life insurance plans which cover certain employees. The Company uses the accrued benefit actuarial method and best estimate assumptions to determine pension costs, liabilities and other pension information for defined benefit plans. </font></div> <div><font style="font-face: Times New Roman" size="3" color="#000000"></font><font style="font-face: Times New Roman" size="2" color="#000000">The following provides information on the pension plan and postretirement medical and life insurance plans for the three and six months ended June 26, 2011 and June 30, 2010. </font></div> <div><font style="font-face: Times New Roman" size="3" color="#000000"></font><font style="font-face: Times New Roman" size="1" color="#000000"><b> </b></font></div> <div><font style="font-face: Times New Roman" size="2" color="#000000"><b></b></font></div> <table border="0" cellspacing="0" cellpadding="0"> <tr> <td width="82"><div> </div></td> <td width="11"><div> </div></td> <td width="7"><div> </div></td> <td width="26"><div> </div></td> <td width="7"><div> </div></td> <td width="11"><div> </div></td> <td width="13"><div> </div></td> <td width="50"><div> </div></td> <td width="7"><div> </div></td> <td width="11"><div> </div></td> <td width="7"><div> </div></td> <td width="26"><div> </div></td> <td width="7"><div> </div></td> <td width="11"><div> </div></td> <td width="13"><div> </div></td> <td width="50"><div> </div></td> <td width="7"><div> </div></td> <td width="11"><div> </div></td> <td width="7"><div> </div></td> <td width="26"><div> </div></td> <td width="7"><div> </div></td> <td width="11"><div> </div></td> <td width="13"><div> </div></td> <td width="50"><div> </div></td> <td width="7"><div> </div></td> <td width="11"><div> </div></td> <td width="7"><div> </div></td> <td width="26"><div> </div></td> <td width="7"><div> </div></td> <td width="11"><div> </div></td> <td width="13"><div> </div></td> <td width="50"><div> </div></td> <td width="7"><div> </div></td> </tr> <tr> <td width="82"><div><font style="font-face: Times New Roman" size="1" color="#000000"> </font></div></td> <td width="11"><div><font style="font-face: Times New Roman" size="1" color="#000000">  </font></div></td> <td colspan="6" width="117"><div align="center"><font style="font-face: Times New Roman" size="1" color="#000000"><b>Three Months</b></font></div><div align="center"><font style="font-face: Times New Roman" size="1" color="#000000"><b>Ended</b></font></div><div align="center"><font style="font-face: Times New Roman" size="1" color="#000000"><b>June 26, 2011</b></font></div></td> <td width="7"><div><font style="font-face: Times New Roman" size="1" color="#000000"> </font></div></td> <td width="11"><div><font style="font-face: Times New Roman" size="1" color="#000000"> </font></div></td> <td colspan="6" width="117"><div align="center"><font style="font-face: Times New Roman" size="1" color="#000000"><b>Three Months</b></font></div><div align="center"><font style="font-face: Times New Roman" size="1" color="#000000"><b>Ended</b></font></div><div align="center"><font style="font-face: Times New Roman" size="1" color="#000000"><b>June 30, 2010</b></font></div></td> <td width="7"><div><font style="font-face: Times New Roman" size="1" color="#000000"> </font></div></td> <td width="11"><div><font style="font-face: Times New Roman" size="1" color="#000000"> </font></div></td> <td colspan="6" width="117"><div align="center"><font style="font-face: Times New Roman" size="1" color="#000000"><b>Six Months Ended</b></font></div><div align="center"><font style="font-face: Times New Roman" size="1" color="#000000"><b>June 26, 2011</b></font></div></td> <td width="7"><div><font style="font-face: Times New Roman" size="1" color="#000000"> </font></div></td> <td width="11"><div><font style="font-face: Times New Roman" size="1" color="#000000"> </font></div></td> <td colspan="6" width="117"><div align="center"><font style="font-face: Times New Roman" size="1" color="#000000"><b>Six Months Ended</b></font></div><div align="center"><font style="font-face: Times New Roman" size="1" color="#000000"><b>June 30, 2010</b></font></div></td> <td width="7"><div><font style="font-face: Times New Roman" size="1" color="#000000"> </font></div></td> </tr> <tr> <td width="82"><div><font style="font-face: Times New Roman" size="1" color="#000000"> </font></div></td> <td width="11"><div><font style="font-face: Times New Roman" size="1" color="#000000">  </font></div></td> <td colspan="2" width="33"><div align="center"><font style="font-face: Times New Roman" size="1" color="#000000"><b>Pension</b></font></div></td> <td width="7"><div><font style="font-face: Times New Roman" size="1" color="#000000"> </font></div></td> <td width="11"><div><font style="font-face: Times New Roman" size="1" color="#000000"> </font></div></td> <td colspan="2" width="64"><div align="center"><font style="font-face: Times New Roman" size="1" color="#000000"><b>Postretirement</b></font></div></td> <td width="7"><div><font style="font-face: Times New Roman" size="1" color="#000000"> </font></div></td> <td width="11"><div><font style="font-face: Times New Roman" size="1" color="#000000"> </font></div></td> <td colspan="2" width="33"><div align="center"><font style="font-face: Times New Roman" size="1" color="#000000"><b>Pension</b></font></div></td> <td width="7"><div><font style="font-face: Times New Roman" size="1" color="#000000"> </font></div></td> <td width="11"><div><font style="font-face: Times New Roman" size="1" color="#000000"> </font></div></td> <td colspan="2" width="64"><div align="center"><font style="font-face: Times New Roman" size="1" color="#000000"><b>Postretirement</b></font></div></td> <td width="7"><div><font style="font-face: Times New Roman" size="1" color="#000000"> </font></div></td> <td width="11"><div><font style="font-face: Times New Roman" size="1" color="#000000"> </font></div></td> <td colspan="2" width="33"><div align="center"><font style="font-face: Times New Roman" size="1" color="#000000"><b>Pension</b></font></div></td> <td width="7"><div><font style="font-face: Times New Roman" size="1" color="#000000"> </font></div></td> <td width="11"><div><font style="font-face: Times New Roman" size="1" color="#000000"> </font></div></td> <td colspan="2" width="64"><div align="center"><font style="font-face: Times New Roman" size="1" color="#000000"><b>Postretirement</b></font></div></td> <td width="7"><div><font style="font-face: Times New Roman" size="1" color="#000000"> </font></div></td> <td width="11"><div><font style="font-face: Times New Roman" size="1" color="#000000"> </font></div></td> <td colspan="2" width="33"><div align="center"><font style="font-face: Times New Roman" size="1" color="#000000"><b>Pension</b></font></div></td> <td width="7"><div><font style="font-face: Times New Roman" size="1" color="#000000"> </font></div></td> <td width="11"><div><font style="font-face: Times New Roman" size="1" color="#000000"> </font></div></td> <td colspan="2" width="64"><div align="center"><font style="font-face: Times New Roman" size="1" color="#000000"><b>Postretirement</b></font></div></td> <td width="7"><div><font style="font-face: Times New Roman" size="1" color="#000000"> </font></div></td> </tr> <tr> <td width="82" bgcolor="#cceeff"><div><font style="font-face: Times New Roman" size="2" color="#000000">Components of net periodic benefit costs:</font></div></td> <td width="11" bgcolor="#cceeff"><div><font style="font-face: Times New Roman" size="1" color="#000000">  </font></div></td> <td width="7" bgcolor="#cceeff"><div> </div></td> <td width="26" bgcolor="#cceeff"><div> </div></td> <td width="7" bgcolor="#cceeff"><div> </div></td> <td width="11" bgcolor="#cceeff"><div><font style="font-face: Times New Roman" size="1" color="#000000"> </font></div></td> <td width="13" bgcolor="#cceeff"><div> </div></td> <td width="50" bgcolor="#cceeff"><div> </div></td> <td width="7" bgcolor="#cceeff"><div> </div></td> <td width="11" bgcolor="#cceeff"><div><font style="font-face: Times New Roman" size="1" color="#000000"> </font></div></td> <td width="7" bgcolor="#cceeff"><div> </div></td> <td width="26" bgcolor="#cceeff"><div> </div></td> <td width="7" bgcolor="#cceeff"><div> </div></td> <td width="11" bgcolor="#cceeff"><div><font style="font-face: Times New Roman" size="1" color="#000000"> </font></div></td> <td width="13" bgcolor="#cceeff"><div> </div></td> <td width="50" bgcolor="#cceeff"><div> </div></td> <td width="7" bgcolor="#cceeff"><div> </div></td> <td width="11" bgcolor="#cceeff"><div><font style="font-face: Times New Roman" size="1" color="#000000"> </font></div></td> <td width="7" bgcolor="#cceeff"><div> </div></td> <td width="26" bgcolor="#cceeff"><div> </div></td> <td width="7" bgcolor="#cceeff"><div> </div></td> <td width="11" bgcolor="#cceeff"><div><font style="font-face: Times New Roman" size="1" color="#000000"> </font></div></td> <td width="13" bgcolor="#cceeff"><div> </div></td> <td width="50" bgcolor="#cceeff"><div> </div></td> <td width="7" bgcolor="#cceeff"><div> </div></td> <td width="11" bgcolor="#cceeff"><div><font style="font-face: Times New Roman" size="1" color="#000000"> </font></div></td> <td width="7" bgcolor="#cceeff"><div> </div></td> <td width="26" bgcolor="#cceeff"><div> </div></td> <td width="7" bgcolor="#cceeff"><div> </div></td> <td width="11" bgcolor="#cceeff"><div><font style="font-face: Times New Roman" size="1" color="#000000"> </font></div></td> <td width="13" bgcolor="#cceeff"><div> </div></td> <td width="50" bgcolor="#cceeff"><div> </div></td> <td width="7" bgcolor="#cceeff"><div> </div></td> </tr> <tr> <td width="82"><div><font style="font-face: Times New Roman" size="2" color="#000000">Service cost</font></div></td> <td width="11"><div><font style="font-face: Times New Roman" size="1" color="#000000">  </font></div></td> <td width="7"><div><font style="font-face: Times New Roman" size="2" color="#000000">$</font></div></td> <td width="26"><div align="right"><font style="font-face: Times New Roman" size="2" color="#000000">50</font></div></td> <td width="7"><div><font style="font-face: Times New Roman" size="2" color="#000000">  </font></div></td> <td width="11"><div><font style="font-face: Times New Roman" size="1" color="#000000"> </font></div></td> <td width="13"><div><font style="font-face: Times New Roman" size="2" color="#000000">$</font></div></td> <td width="50"><div align="right"><font style="font-face: Times New Roman" size="2" color="#000000">11</font></div></td> <td width="7"><div><font style="font-face: Times New Roman" size="2" color="#000000">  </font></div></td> <td width="11"><div><font style="font-face: Times New Roman" size="1" color="#000000"> </font></div></td> <td width="7"><div><font style="font-face: Times New Roman" size="2" color="#000000">$</font></div></td> <td width="26"><div align="right"><font style="font-face: Times New Roman" size="2" color="#000000">50</font></div></td> <td width="7"><div><font style="font-face: Times New Roman" size="2" color="#000000">  </font></div></td> <td width="11"><div><font style="font-face: Times New Roman" size="1" color="#000000"> </font></div></td> <td width="13"><div><font style="font-face: Times New Roman" size="2" color="#000000">$</font></div></td> <td width="50"><div align="right"><font style="font-face: Times New Roman" size="2" color="#000000">14</font></div></td> <td width="7"><div><font style="font-face: Times New Roman" size="2" color="#000000">  </font></div></td> <td width="11"><div><font style="font-face: Times New Roman" size="1" color="#000000"> </font></div></td> <td width="7"><div><font style="font-face: Times New Roman" size="2" color="#000000">$</font></div></td> <td width="26"><div align="right"><font style="font-face: Times New Roman" size="2" color="#000000">100</font></div></td> <td width="7"><div><font style="font-face: Times New Roman" size="2" color="#000000">  </font></div></td> <td width="11"><div><font style="font-face: Times New Roman" size="1" color="#000000"> </font></div></td> <td width="13"><div><font style="font-face: Times New Roman" size="2" color="#000000">$</font></div></td> <td width="50"><div align="right"><font style="font-face: Times New Roman" size="2" color="#000000">21</font></div></td> <td width="7"><div><font style="font-face: Times New Roman" size="2" color="#000000">  </font></div></td> <td width="11"><div><font style="font-face: Times New Roman" size="1" color="#000000"> </font></div></td> <td width="7"><div><font style="font-face: Times New Roman" size="2" color="#000000">$</font></div></td> <td width="26"><div align="right"><font style="font-face: Times New Roman" size="2" color="#000000">100</font></div></td> <td width="7"><div><font style="font-face: Times New Roman" size="2" color="#000000">  </font></div></td> <td width="11"><div><font style="font-face: Times New Roman" size="1" color="#000000"> </font></div></td> <td width="13"><div><font style="font-face: Times New Roman" size="2" color="#000000">$</font></div></td> <td width="50"><div align="right"><font style="font-face: Times New Roman" size="2" color="#000000">27</font></div></td> <td width="7"><div><font style="font-face: Times New Roman" size="2" color="#000000">  </font></div></td> </tr> <tr> <td width="82" bgcolor="#cceeff"><div><font style="font-face: Times New Roman" size="2" color="#000000">Interest cost</font></div></td> <td width="11" bgcolor="#cceeff"><div><font style="font-face: Times New Roman" size="1" color="#000000">  </font></div></td> <td width="7" bgcolor="#cceeff"><div><font style="font-face: Times New Roman" size="2" color="#000000"> </font></div></td> <td width="26" bgcolor="#cceeff"><div align="right"><font style="font-face: Times New Roman" size="2" color="#000000">310</font></div></td> <td width="7" bgcolor="#cceeff"><div><font style="font-face: Times New Roman" size="2" color="#000000">  </font></div></td> <td width="11" bgcolor="#cceeff"><div><font style="font-face: Times New Roman" size="1" color="#000000"> </font></div></td> <td width="13" bgcolor="#cceeff"><div><font style="font-face: Times New Roman" size="2" color="#000000"> </font></div></td> <td width="50" bgcolor="#cceeff"><div align="right"><font style="font-face: Times New Roman" size="2" color="#000000">76</font></div></td> <td width="7" bgcolor="#cceeff"><div><font style="font-face: Times New Roman" size="2" color="#000000">  </font></div></td> <td width="11" bgcolor="#cceeff"><div><font style="font-face: Times New Roman" size="1" color="#000000"> </font></div></td> <td width="7" bgcolor="#cceeff"><div><font style="font-face: Times New Roman" size="2" color="#000000"> </font></div></td> <td width="26" bgcolor="#cceeff"><div align="right"><font style="font-face: Times New Roman" size="2" color="#000000">303</font></div></td> <td width="7" bgcolor="#cceeff"><div><font style="font-face: Times New Roman" size="2" color="#000000">  </font></div></td> <td width="11" bgcolor="#cceeff"><div><font style="font-face: Times New Roman" size="1" color="#000000"> </font></div></td> <td width="13" bgcolor="#cceeff"><div><font style="font-face: Times New Roman" size="2" color="#000000"> </font></div></td> <td width="50" bgcolor="#cceeff"><div align="right"><font style="font-face: Times New Roman" size="2" color="#000000">83</font></div></td> <td width="7" bgcolor="#cceeff"><div><font style="font-face: Times New Roman" size="2" color="#000000">  </font></div></td> <td width="11" bgcolor="#cceeff"><div><font style="font-face: Times New Roman" size="1" color="#000000"> </font></div></td> <td width="7" bgcolor="#cceeff"><div><font style="font-face: Times New Roman" size="2" color="#000000"> </font></div></td> <td width="26" bgcolor="#cceeff"><div align="right"><font style="font-face: Times New Roman" size="2" color="#000000">620</font></div></td> <td width="7" bgcolor="#cceeff"><div><font style="font-face: Times New Roman" size="2" color="#000000">  </font></div></td> <td width="11" bgcolor="#cceeff"><div><font style="font-face: Times New Roman" size="1" color="#000000"> </font></div></td> <td width="13" bgcolor="#cceeff"><div><font style="font-face: Times New Roman" size="2" color="#000000"> </font></div></td> <td width="50" bgcolor="#cceeff"><div align="right"><font style="font-face: Times New Roman" size="2" color="#000000">153</font></div></td> <td width="7" bgcolor="#cceeff"><div><font style="font-face: Times New Roman" size="2" color="#000000">  </font></div></td> <td width="11" bgcolor="#cceeff"><div><font style="font-face: Times New Roman" size="1" color="#000000"> </font></div></td> <td width="7" bgcolor="#cceeff"><div><font style="font-face: Times New Roman" size="2" color="#000000"> </font></div></td> <td width="26" bgcolor="#cceeff"><div align="right"><font style="font-face: Times New Roman" size="2" color="#000000">605</font></div></td> <td width="7" bgcolor="#cceeff"><div><font style="font-face: Times New Roman" size="2" color="#000000">  </font></div></td> <td width="11" bgcolor="#cceeff"><div><font style="font-face: Times New Roman" size="1" color="#000000"> </font></div></td> <td width="13" bgcolor="#cceeff"><div><font style="font-face: Times New Roman" size="2" color="#000000"> </font></div></td> <td width="50" bgcolor="#cceeff"><div align="right"><font style="font-face: Times New Roman" size="2" color="#000000">167</font></div></td> <td width="7" bgcolor="#cceeff"><div><font style="font-face: Times New Roman" size="2" color="#000000">  </font></div></td> </tr> <tr> <td width="82"><div><font style="font-face: Times New Roman" size="2" color="#000000">Expected return on plan assets</font></div></td> <td width="11"><div><font style="font-face: Times New Roman" size="1" color="#000000">  </font></div></td> <td width="7"><div><font style="font-face: Times New Roman" size="2" color="#000000"> </font></div></td> <td width="26"><div align="right"><font style="font-face: Times New Roman" size="2" color="#000000">(320</font></div></td> <td width="7"><div><font style="font-face: Times New Roman" size="2" color="#000000">) </font></div></td> <td width="11"><div><font style="font-face: Times New Roman" size="1" color="#000000"> </font></div></td> <td width="13"><div><font style="font-face: Times New Roman" size="2" color="#000000"> </font></div></td> <td width="50"><div align="right"><font style="font-face: Times New Roman" size="2" color="#000000">  </font></div></td> <td width="7"><div><font style="font-face: Times New Roman" size="2" color="#000000">  </font></div></td> <td width="11"><div><font style="font-face: Times New Roman" size="1" color="#000000"> </font></div></td> <td width="7"><div><font style="font-face: Times New Roman" size="2" color="#000000"> </font></div></td> <td width="26"><div align="right"><font style="font-face: Times New Roman" size="2" color="#000000">(300</font></div></td> <td width="7"><div><font style="font-face: Times New Roman" size="2" color="#000000">) </font></div></td> <td width="11"><div><font style="font-face: Times New Roman" size="1" color="#000000"> </font></div></td> <td width="13"><div><font style="font-face: Times New Roman" size="2" color="#000000"> </font></div></td> <td width="50"><div align="right"><font style="font-face: Times New Roman" size="2" color="#000000">  </font></div></td> <td width="7"><div><font style="font-face: Times New Roman" size="2" color="#000000">  </font></div></td> <td width="11"><div><font style="font-face: Times New Roman" size="1" color="#000000"> </font></div></td> <td width="7"><div><font style="font-face: Times New Roman" size="2" color="#000000"> </font></div></td> <td width="26"><div align="right"><font style="font-face: Times New Roman" size="2" color="#000000">(640</font></div></td> <td width="7"><div><font style="font-face: Times New Roman" size="2" color="#000000">) </font></div></td> <td width="11"><div><font style="font-face: Times New Roman" size="1" color="#000000"> </font></div></td> <td width="13"><div><font style="font-face: Times New Roman" size="2" color="#000000"> </font></div></td> <td width="50"><div align="right"><font style="font-face: Times New Roman" size="2" color="#000000">  </font></div></td> <td width="7"><div><font style="font-face: Times New Roman" size="2" color="#000000">  </font></div></td> <td width="11"><div><font style="font-face: Times New Roman" size="1" color="#000000"> </font></div></td> <td width="7"><div><font style="font-face: Times New Roman" size="2" color="#000000"> </font></div></td> <td width="26"><div align="right"><font style="font-face: Times New Roman" size="2" color="#000000">(600</font></div></td> <td width="7"><div><font style="font-face: Times New Roman" size="2" color="#000000">) </font></div></td> <td width="11"><div><font style="font-face: Times New Roman" size="1" color="#000000"> </font></div></td> <td width="13"><div><font style="font-face: Times New Roman" size="2" color="#000000"> </font></div></td> <td width="50"><div align="right"><font style="font-face: Times New Roman" size="2" color="#000000">  </font></div></td> <td width="7"><div><font style="font-face: Times New Roman" size="2" color="#000000">  </font></div></td> </tr> <tr> <td width="82" bgcolor="#cceeff"><div><font style="font-face: Times New Roman" size="2" color="#000000">Amortization of prior service cost</font></div></td> <td width="11" bgcolor="#cceeff"><div><font style="font-face: Times New Roman" size="1" color="#000000">  </font></div></td> <td width="7" bgcolor="#cceeff"><div><font style="font-face: Times New Roman" size="2" color="#000000"> </font></div></td> <td width="26" bgcolor="#cceeff"><div align="right"><font style="font-face: Times New Roman" size="2" color="#000000">  </font></div></td> <td width="7" bgcolor="#cceeff"><div><font style="font-face: Times New Roman" size="2" color="#000000">  </font></div></td> <td width="11" bgcolor="#cceeff"><div><font style="font-face: Times New Roman" size="1" color="#000000"> </font></div></td> <td width="13" bgcolor="#cceeff"><div><font style="font-face: Times New Roman" size="2" color="#000000"> </font></div></td> <td width="50" bgcolor="#cceeff"><div align="right"><font style="font-face: Times New Roman" size="2" color="#000000">(114</font></div></td> <td width="7" bgcolor="#cceeff"><div><font style="font-face: Times New Roman" size="2" color="#000000">) </font></div></td> <td width="11" bgcolor="#cceeff"><div><font style="font-face: Times New Roman" size="1" color="#000000"> </font></div></td> <td width="7" bgcolor="#cceeff"><div><font style="font-face: Times New Roman" size="2" color="#000000"> </font></div></td> <td width="26" bgcolor="#cceeff"><div align="right"><font style="font-face: Times New Roman" size="2" color="#000000">  </font></div></td> <td width="7" bgcolor="#cceeff"><div><font style="font-face: Times New Roman" size="2" color="#000000">  </font></div></td> <td width="11" bgcolor="#cceeff"><div><font style="font-face: Times New Roman" size="1" color="#000000"> </font></div></td> <td width="13" bgcolor="#cceeff"><div><font style="font-face: Times New Roman" size="2" color="#000000"> </font></div></td> <td width="50" bgcolor="#cceeff"><div align="right"><font style="font-face: Times New Roman" size="2" color="#000000">(118</font></div></td> <td width="7" bgcolor="#cceeff"><div><font style="font-face: Times New Roman" size="2" color="#000000">) </font></div></td> <td width="11" bgcolor="#cceeff"><div><font style="font-face: Times New Roman" size="1" color="#000000"> </font></div></td> <td width="7" bgcolor="#cceeff"><div><font style="font-face: Times New Roman" size="2" color="#000000"> </font></div></td> <td width="26" bgcolor="#cceeff"><div align="right"><font style="font-face: Times New Roman" size="2" color="#000000">  </font></div></td> <td width="7" bgcolor="#cceeff"><div><font style="font-face: Times New Roman" size="2" color="#000000">  </font></div></td> <td width="11" bgcolor="#cceeff"><div><font style="font-face: Times New Roman" size="1" color="#000000"> </font></div></td> <td width="13" bgcolor="#cceeff"><div><font style="font-face: Times New Roman" size="2" color="#000000"> </font></div></td> <td width="50" bgcolor="#cceeff"><div align="right"><font style="font-face: Times New Roman" size="2" color="#000000">(228</font></div></td> <td width="7" bgcolor="#cceeff"><div><font style="font-face: Times New Roman" size="2" color="#000000">) </font></div></td> <td width="11" bgcolor="#cceeff"><div><font style="font-face: Times New Roman" size="1" color="#000000"> </font></div></td> <td width="7" bgcolor="#cceeff"><div><font style="font-face: Times New Roman" size="2" color="#000000"> </font></div></td> <td width="26" bgcolor="#cceeff"><div align="right"><font style="font-face: Times New Roman" size="2" color="#000000">  </font></div></td> <td width="7" bgcolor="#cceeff"><div><font style="font-face: Times New Roman" size="2" color="#000000">  </font></div></td> <td width="11" bgcolor="#cceeff"><div><font style="font-face: Times New Roman" size="1" color="#000000"> </font></div></td> <td width="13" bgcolor="#cceeff"><div><font style="font-face: Times New Roman" size="2" color="#000000"> </font></div></td> <td width="50" bgcolor="#cceeff"><div align="right"><font style="font-face: Times New Roman" size="2" color="#000000">(235</font></div></td> <td width="7" bgcolor="#cceeff"><div><font style="font-face: Times New Roman" size="2" color="#000000">) </font></div></td> </tr> <tr> <td width="82"><div><font style="font-face: Times New Roman" size="2" color="#000000">Amortization of unrecognized gain</font></div></td> <td width="11"><div><font style="font-face: Times New Roman" size="1" color="#000000">  </font></div></td> <td width="7"><div><font style="font-face: Times New Roman" size="2" color="#000000"> </font></div></td> <td width="26"><div align="right"><font style="font-face: Times New Roman" size="2" color="#000000">85</font></div></td> <td width="7"><div><font style="font-face: Times New Roman" size="2" color="#000000">  </font></div></td> <td width="11"><div><font style="font-face: Times New Roman" size="1" color="#000000"> </font></div></td> <td width="13"><div><font style="font-face: Times New Roman" size="2" color="#000000"> </font></div></td> <td width="50"><div align="right"><font style="font-face: Times New Roman" size="2" color="#000000">  </font></div></td> <td width="7"><div><font style="font-face: Times New Roman" size="2" color="#000000">  </font></div></td> <td width="11"><div><font style="font-face: Times New Roman" size="1" color="#000000"> </font></div></td> <td width="7"><div><font style="font-face: Times New Roman" size="2" color="#000000"> </font></div></td> <td width="26"><div align="right"><font style="font-face: Times New Roman" size="2" color="#000000">25</font></div></td> <td width="7"><div><font style="font-face: Times New Roman" size="2" color="#000000">  </font></div></td> <td width="11"><div><font style="font-face: Times New Roman" size="1" color="#000000"> </font></div></td> <td width="13"><div><font style="font-face: Times New Roman" size="2" color="#000000"> </font></div></td> <td width="50"><div align="right"><font style="font-face: Times New Roman" size="2" color="#000000">  </font></div></td> <td width="7"><div><font style="font-face: Times New Roman" size="2" color="#000000">  </font></div></td> <td width="11"><div><font style="font-face: Times New Roman" size="1" color="#000000"> </font></div></td> <td width="7"><div><font style="font-face: Times New Roman" size="2" color="#000000"> </font></div></td> <td width="26"><div align="right"><font style="font-face: Times New Roman" size="2" color="#000000">170</font></div></td> <td width="7"><div><font style="font-face: Times New Roman" size="2" color="#000000">  </font></div></td> <td width="11"><div><font style="font-face: Times New Roman" size="1" color="#000000"> </font></div></td> <td width="13"><div><font style="font-face: Times New Roman" size="2" color="#000000"> </font></div></td> <td width="50"><div align="right"><font style="font-face: Times New Roman" size="2" color="#000000">  </font></div></td> <td width="7"><div><font style="font-face: Times New Roman" size="2" color="#000000">  </font></div></td> <td width="11"><div><font style="font-face: Times New Roman" size="1" color="#000000"> </font></div></td> <td width="7"><div><font style="font-face: Times New Roman" size="2" color="#000000"> </font></div></td> <td width="26"><div align="right"><font style="font-face: Times New Roman" size="2" color="#000000">50</font></div></td> <td width="7"><div><font style="font-face: Times New Roman" size="2" color="#000000">  </font></div></td> <td width="11"><div><font style="font-face: Times New Roman" size="1" color="#000000"> </font></div></td> <td width="13"><div><font style="font-face: Times New Roman" size="2" color="#000000"> </font></div></td> <td width="50"><div align="right"><font style="font-face: Times New Roman" size="2" color="#000000">  </font></div></td> <td width="7"><div><font style="font-face: Times New Roman" size="2" color="#000000">  </font></div></td> </tr> <tr> <td width="82"><div> </div></td> <td width="11"><div><font style="font-face: Times New Roman" size="1" color="#000000">  </font></div></td> <td width="7"><div><font style="font-face: Times New Roman" size="1" color="#000000"> </font></div></td> <td width="26"><div><font style="font-face: Times New Roman" size="1" color="#000000"> </font></div></td> <td width="7"><div><font style="font-face: Times New Roman" size="1" color="#000000"> </font></div></td> <td width="11"><div><font style="font-face: Times New Roman" size="1" color="#000000"> </font></div></td> <td width="13"><div><font style="font-face: Times New Roman" size="1" color="#000000"> </font></div></td> <td width="50"><div><font style="font-face: Times New Roman" size="1" color="#000000"> </font></div></td> <td width="7"><div><font style="font-face: Times New Roman" size="1" color="#000000"> </font></div></td> <td width="11"><div><font style="font-face: Times New Roman" size="1" color="#000000"> </font></div></td> <td width="7"><div><font style="font-face: Times New Roman" size="1" color="#000000"> </font></div></td> <td width="26"><div><font style="font-face: Times New Roman" size="1" color="#000000"> </font></div></td> <td width="7"><div><font style="font-face: Times New Roman" size="1" color="#000000"> </font></div></td> <td width="11"><div><font style="font-face: Times New Roman" size="1" color="#000000"> </font></div></td> <td width="13"><div><font style="font-face: Times New Roman" size="1" color="#000000"> </font></div></td> <td width="50"><div><font style="font-face: Times New Roman" size="1" color="#000000"> </font></div></td> <td width="7"><div><font style="font-face: Times New Roman" size="1" color="#000000"> </font></div></td> <td width="11"><div><font style="font-face: Times New Roman" size="1" color="#000000"> </font></div></td> <td width="7"><div><font style="font-face: Times New Roman" size="1" color="#000000"> </font></div></td> <td width="26"><div><font style="font-face: Times New Roman" size="1" color="#000000"> </font></div></td> <td width="7"><div><font style="font-face: Times New Roman" size="1" color="#000000"> </font></div></td> <td width="11"><div><font style="font-face: Times New Roman" size="1" color="#000000"> </font></div></td> <td width="13"><div><font style="font-face: Times New Roman" size="1" color="#000000"> </font></div></td> <td width="50"><div><font style="font-face: Times New Roman" size="1" color="#000000"> </font></div></td> <td width="7"><div><font style="font-face: Times New Roman" size="1" color="#000000"> </font></div></td> <td width="11"><div><font style="font-face: Times New Roman" size="1" color="#000000"> </font></div></td> <td width="7"><div><font style="font-face: Times New Roman" size="1" color="#000000"> </font></div></td> <td width="26"><div><font style="font-face: Times New Roman" size="1" color="#000000"> </font></div></td> <td width="7"><div><font style="font-face: Times New Roman" size="1" color="#000000"> </font></div></td> <td width="11"><div><font style="font-face: Times New Roman" size="1" color="#000000"> </font></div></td> <td width="13"><div><font style="font-face: Times New Roman" size="1" color="#000000"> </font></div></td> <td width="50"><div><font style="font-face: Times New Roman" size="1" color="#000000"> </font></div></td> <td width="7"><div><font style="font-face: Times New Roman" size="1" color="#000000"> </font></div></td> </tr> <tr> <td width="82" bgcolor="#cceeff"><div><font style="font-face: Times New Roman" size="2" color="#000000">Total</font></div></td> <td width="11" bgcolor="#cceeff"><div><font style="font-face: Times New Roman" size="1" color="#000000">  </font></div></td> <td width="7" bgcolor="#cceeff"><div><font style="font-face: Times New Roman" size="2" color="#000000">$</font></div></td> <td width="26" bgcolor="#cceeff"><div align="right"><font style="font-face: Times New Roman" size="2" color="#000000">125</font></div></td> <td width="7" bgcolor="#cceeff"><div><font style="font-face: Times New Roman" size="2" color="#000000">  </font></div></td> <td width="11" bgcolor="#cceeff"><div><font style="font-face: Times New Roman" size="1" color="#000000"> </font></div></td> <td width="13" bgcolor="#cceeff"><div><font style="font-face: Times New Roman" size="2" color="#000000">$</font></div></td> <td width="50" bgcolor="#cceeff"><div align="right"><font style="font-face: Times New Roman" size="2" color="#000000">(27</font></div></td> <td width="7" bgcolor="#cceeff"><div><font style="font-face: Times New Roman" size="2" color="#000000">) </font></div></td> <td width="11" bgcolor="#cceeff"><div><font style="font-face: Times New Roman" size="1" color="#000000"> </font></div></td> <td width="7" bgcolor="#cceeff"><div><font style="font-face: Times New Roman" size="2" color="#000000">$</font></div></td> <td width="26" bgcolor="#cceeff"><div align="right"><font style="font-face: Times New Roman" size="2" color="#000000">78</font></div></td> <td width="7" bgcolor="#cceeff"><div><font style="font-face: Times New Roman" size="2" color="#000000">  </font></div></td> <td width="11" bgcolor="#cceeff"><div><font style="font-face: Times New Roman" size="1" color="#000000"> </font></div></td> <td width="13" bgcolor="#cceeff"><div><font style="font-face: Times New Roman" size="2" color="#000000">$</font></div></td> <td width="50" bgcolor="#cceeff"><div align="right"><font style="font-face: Times New Roman" size="2" color="#000000">(21</font></div></td> <td width="7" bgcolor="#cceeff"><div><font style="font-face: Times New Roman" size="2" color="#000000">) </font></div></td> <td width="11" bgcolor="#cceeff"><div><font style="font-face: Times New Roman" size="1" color="#000000"> </font></div></td> <td width="7" bgcolor="#cceeff"><div><font style="font-face: Times New Roman" size="2" color="#000000">$</font></div></td> <td width="26" bgcolor="#cceeff"><div align="right"><font style="font-face: Times New Roman" size="2" color="#000000">250</font></div></td> <td width="7" bgcolor="#cceeff"><div><font style="font-face: Times New Roman" size="2" color="#000000">  </font></div></td> <td width="11" bgcolor="#cceeff"><div><font style="font-face: Times New Roman" size="1" color="#000000"> </font></div></td> <td width="13" bgcolor="#cceeff"><div><font style="font-face: Times New Roman" size="2" color="#000000">$</font></div></td> <td width="50" bgcolor="#cceeff"><div align="right"><font style="font-face: Times New Roman" size="2" color="#000000">(54</font></div></td> <td width="7" bgcolor="#cceeff"><div><font style="font-face: Times New Roman" size="2" color="#000000">) </font></div></td> <td width="11" bgcolor="#cceeff"><div><font style="font-face: Times New Roman" size="1" color="#000000"> </font></div></td> <td width="7" bgcolor="#cceeff"><div><font style="font-face: Times New Roman" size="2" color="#000000">$</font></div></td> <td width="26" bgcolor="#cceeff"><div align="right"><font style="font-face: Times New Roman" size="2" color="#000000">155</font></div></td> <td width="7" bgcolor="#cceeff"><div><font style="font-face: Times New Roman" size="2" color="#000000">  </font></div></td> <td width="11" bgcolor="#cceeff"><div><font style="font-face: Times New Roman" size="1" color="#000000"> </font></div></td> <td width="13" bgcolor="#cceeff"><div><font style="font-face: Times New Roman" size="2" color="#000000">$</font></div></td> <td width="50" bgcolor="#cceeff"><div align="right"><font style="font-face: Times New Roman" size="2" color="#000000">(41</font></div></td> <td width="7" bgcolor="#cceeff"><div><font style="font-face: Times New Roman" size="2" color="#000000">) </font></div></td> </tr> <tr> <td width="82"><div> </div></td> <td width="11"><div><font style="font-face: Times New Roman" size="1" color="#000000">  </font></div></td> <td width="7"><div><font style="font-face: Times New Roman" size="1" color="#000000"> </font></div></td> <td width="26"><div><font style="font-face: Times New Roman" size="1" color="#000000"> </font></div></td> <td width="7"><div><font style="font-face: Times New Roman" size="1" color="#000000"> </font></div></td> <td width="11"><div><font style="font-face: Times New Roman" size="1" color="#000000"> </font></div></td> <td width="13"><div><font style="font-face: Times New Roman" size="1" color="#000000"> </font></div></td> <td width="50"><div><font style="font-face: Times New Roman" size="1" color="#000000"> </font></div></td> <td width="7"><div><font style="font-face: Times New Roman" size="1" color="#000000"> </font></div></td> <td width="11"><div><font style="font-face: Times New Roman" size="1" color="#000000"> </font></div></td> <td width="7"><div><font style="font-face: Times New Roman" size="1" color="#000000"> </font></div></td> <td width="26"><div><font style="font-face: Times New Roman" size="1" color="#000000"> </font></div></td> <td width="7"><div><font style="font-face: Times New Roman" size="1" color="#000000"> </font></div></td> <td width="11"><div><font style="font-face: Times New Roman" size="1" color="#000000"> </font></div></td> <td width="13"><div><font style="font-face: Times New Roman" size="1" color="#000000"> </font></div></td> <td width="50"><div><font style="font-face: Times New Roman" size="1" color="#000000"> </font></div></td> <td width="7"><div><font style="font-face: Times New Roman" size="1" color="#000000"> </font></div></td> <td width="11"><div><font style="font-face: Times New Roman" size="1" color="#000000"> </font></div></td> <td width="7"><div><font style="font-face: Times New Roman" size="1" color="#000000"> </font></div></td> <td width="26"><div><font style="font-face: Times New Roman" size="1" color="#000000"> </font></div></td> <td width="7"><div><font style="font-face: Times New Roman" size="1" color="#000000"> </font></div></td> <td width="11"><div><font style="font-face: Times New Roman" size="1" color="#000000"> </font></div></td> <td width="13"><div><font style="font-face: Times New Roman" size="1" color="#000000"> </font></div></td> <td width="50"><div><font style="font-face: Times New Roman" size="1" color="#000000"> </font></div></td> <td width="7"><div><font style="font-face: Times New Roman" size="1" color="#000000"> </font></div></td> <td width="11"><div><font style="font-face: Times New Roman" size="1" color="#000000"> </font></div></td> <td width="7"><div><font style="font-face: Times New Roman" size="1" color="#000000"> </font></div></td> <td width="26"><div><font style="font-face: Times New Roman" size="1" color="#000000"> </font></div></td> <td width="7"><div><font style="font-face: Times New Roman" size="1" color="#000000"> </font></div></td> <td width="11"><div><font style="font-face: Times New Roman" size="1" color="#000000"> </font></div></td> <td width="13"><div><font style="font-face: Times New Roman" size="1" color="#000000"> </font></div></td> <td width="50"><div><font style="font-face: Times New Roman" size="1" color="#000000"> </font></div></td> <td width="7"><div><font style="font-face: Times New Roman" size="1" color="#000000"> </font></div></td> </tr> </table> <div><font style="font-face: Times New Roman" size="2" color="#000000">During the three and six months ended June 26, 2011 and June 30, 2010, the Company recognized a total of $212, $175, $424 and $349 in pension and postretirement benefit expense, respectively. </font></div> <div><font style="font-face: Times New Roman" size="3" color="#000000"></font><font style="font-face: Times New Roman" size="2" color="#000000">The following assumptions were used in connection with the Company's actuarial valuation of its defined benefit pension and postretirement plans: </font></div> <div><font style="font-face: Times New Roman" size="3" color="#000000"></font><font style="font-face: Times New Roman" size="2" color="#000000"> </font></div> <div><font style="font-face: Times New Roman" size="2" color="#000000"></font></div> <table border="0" cellspacing="0" cellpadding="0"> <tr> <td width="285"><div> </div></td> <td width="33"><div> </div></td> <td width="4"><div> </div></td> <td width="29"><div> </div></td> <td width="14"><div> </div></td> <td width="33"><div> </div></td> <td width="7"><div> </div></td> <td width="57"><div> </div></td> <td width="14"><div> </div></td> </tr> <tr> <td width="285"><div><font style="font-face: Times New Roman" size="1" color="#000000"> </font></div></td> <td width="33"><div><font style="font-face: Times New Roman" size="1" color="#000000">  </font></div></td> <td colspan="2" width="33"><div align="center"><font style="font-face: Times New Roman" size="1" color="#000000"><b>Pension</b></font></div></td> <td width="14"><div><font style="font-face: Times New Roman" size="1" color="#000000"> </font></div></td> <td width="33"><div><font style="font-face: Times New Roman" size="1" color="#000000"> </font></div></td> <td colspan="2" width="64"><div align="center"><font style="font-face: Times New Roman" size="1" color="#000000"><b>Postretirement</b></font></div></td> <td width="14"><div><font style="font-face: Times New Roman" size="1" color="#000000"> </font></div></td> </tr> <tr> <td width="285" bgcolor="#cceeff"><div><font style="font-face: Times New Roman" size="2" color="#000000">Weighted average discount rate</font></div></td> <td width="33" bgcolor="#cceeff"><div><font style="font-face: Times New Roman" size="1" color="#000000">  </font></div></td> <td width="4" bgcolor="#cceeff"><div><font style="font-face: Times New Roman" size="2" color="#000000"> </font></div></td> <td width="29" bgcolor="#cceeff"><div align="right"><font style="font-face: Times New Roman" size="2" color="#000000">5.25</font></div></td> <td width="14" bgcolor="#cceeff"><div><font style="font-face: Times New Roman" size="2" color="#000000">% </font></div></td> <td width="33" bgcolor="#cceeff"><div><font style="font-face: Times New Roman" size="1" color="#000000"> </font></div></td> <td width="7" bgcolor="#cceeff"><div><font style="font-face: Times New Roman" size="2" color="#000000"> </font></div></td> <td width="57" bgcolor="#cceeff"><div align="right"><font style="font-face: Times New Roman" size="2" color="#000000">5.28</font></div></td> <td width="14" bgcolor="#cceeff"><div><font style="font-face: Times New Roman" size="2" color="#000000">% </font></div></td> </tr> <tr> <td width="285"><div><font style="font-face: Times New Roman" size="2" color="#000000">Rate of increase in future compensation levels</font></div></td> <td width="33"><div><font style="font-face: Times New Roman" size="1" color="#000000">  </font></div></td> <td width="4"><div><font style="font-face: Times New Roman" size="2" color="#000000"> </font></div></td> <td width="29"><div align="right"><font style="font-face: Times New Roman" size="2" color="#000000">  </font></div></td> <td width="14"><div><font style="font-face: Times New Roman" size="2" color="#000000">  </font></div></td> <td width="33"><div><font style="font-face: Times New Roman" size="1" color="#000000"> </font></div></td> <td width="7"><div><font style="font-face: Times New Roman" size="2" color="#000000"> </font></div></td> <td width="57"><div align="right"><font style="font-face: Times New Roman" size="2" color="#000000">  </font></div></td> <td width="14"><div><font style="font-face: Times New Roman" size="2" color="#000000">  </font></div></td> </tr> <tr> <td width="285" bgcolor="#cceeff"><div><font style="font-face: Times New Roman" size="2" color="#000000">Expected return on assets</font></div></td> <td width="33" bgcolor="#cceeff"><div><font style="font-face: Times New Roman" size="1" color="#000000">  </font></div></td> <td width="4" bgcolor="#cceeff"><div><font style="font-face: Times New Roman" size="2" color="#000000"> </font></div></td> <td width="29" bgcolor="#cceeff"><div align="right"><font style="font-face: Times New Roman" size="2" color="#000000">8.0</font></div></td> <td width="14" bgcolor="#cceeff"><div><font style="font-face: Times New Roman" size="2" color="#000000">% </font></div></td> <td width="33" bgcolor="#cceeff"><div><font style="font-face: Times New Roman" size="1" color="#000000"> </font></div></td> <td width="7" bgcolor="#cceeff"><div><font style="font-face: Times New Roman" size="2" color="#000000"> </font></div></td> <td width="57" bgcolor="#cceeff"><div align="right"><font style="font-face: Times New Roman" size="2" color="#000000">  </font></div></td> <td width="14" bgcolor="#cceeff"><div><font style="font-face: Times New Roman" size="2" color="#000000">  </font></div></td> </tr> <tr> <td width="285"><div><font style="font-face: Times New Roman" size="2" color="#000000">Current year trend</font></div></td> <td width="33"><div><font style="font-face: Times New Roman" size="1" color="#000000">  </font></div></td> <td width="4"><div><font style="font-face: Times New Roman" size="2" color="#000000"> </font></div></td> <td width="29"><div align="right"><font style="font-face: Times New Roman" size="2" color="#000000">  </font></div></td> <td width="14"><div><font style="font-face: Times New Roman" size="2" color="#000000">  </font></div></td> <td width="33"><div><font style="font-face: Times New Roman" size="1" color="#000000"> </font></div></td> <td width="7"><div><font style="font-face: Times New Roman" size="2" color="#000000"> </font></div></td> <td width="57"><div align="right"><font style="font-face: Times New Roman" size="2" color="#000000">9.0</font></div></td> <td width="14"><div><font style="font-face: Times New Roman" size="2" color="#000000">% </font></div></td> </tr> <tr> <td width="285" bgcolor="#cceeff"><div><font style="font-face: Times New Roman" size="2" color="#000000">Ultimate year trend</font></div></td> <td width="33" bgcolor="#cceeff"><div><font style="font-face: Times New Roman" size="1" color="#000000">  </font></div></td> <td width="4" bgcolor="#cceeff"><div><font style="font-face: Times New Roman" size="2" color="#000000"> </font></div></td> <td width="29" bgcolor="#cceeff"><div align="right"><font style="font-face: Times New Roman" size="2" color="#000000">  </font></div></td> <td width="14" bgcolor="#cceeff"><div><font style="font-face: Times New Roman" size="2" color="#000000">  </font></div></td> <td width="33" bgcolor="#cceeff"><div><font style="font-face: Times New Roman" size="1" color="#000000"> </font></div></td> <td width="7" bgcolor="#cceeff"><div><font style="font-face: Times New Roman" size="2" color="#000000"> </font></div></td> <td width="57" bgcolor="#cceeff"><div align="right"><font style="font-face: Times New Roman" size="2" color="#000000">5.0</font></div></td> <td width="14" bgcolor="#cceeff"><div><font style="font-face: Times New Roman" size="2" color="#000000">% </font></div></td> </tr> <tr> <td width="285"><div><font style="font-face: Times New Roman" size="2" color="#000000">Year of ultimate trend</font></div></td> <td width="33"><div><font style="font-face: Times New Roman" size="1" color="#000000">  </font></div></td> <td width="4"><div><font style="font-face: Times New Roman" size="2" color="#000000"> </font></div></td> <td width="29"><div align="right"><font style="font-face: Times New Roman" size="2" color="#000000">  </font></div></td> <td width="14"><div><font style="font-face: Times New Roman" size="2" color="#000000">  </font></div></td> <td width="33"><div><font style="font-face: Times New Roman" size="1" color="#000000"> </font></div></td> <td width="7"><div><font style="font-face: Times New Roman" size="2" color="#000000"> </font></div></td> <td width="57"><div align="right"><font style="font-face: Times New Roman" size="2" color="#000000">2019</font></div></td> <td width="14"><div><font style="font-face: Times New Roman" size="2" color="#000000">  </font></div></td> </tr> </table> <div> </div> <div><font style="font-face: Times New Roman" size="2" color="#000000"><b></b></font></div>

5734000

-258000

-415000

2805000

-105000

-191000

4583000

29958000

28250000

15050000

-128000

974000

3244000

14469000

6687000

277319000

254211000

451000

61512000

144216000

5356000

55760000

421000

134394000

<div><font style="font-face: Times New Roman" size="2" color="#000000"><b>(9) Income Taxes </b></font></div> <div><font style="font-face: Times New Roman" size="3" color="#000000"></font><font style="font-face: Times New Roman" size="2" color="#000000">The Company performs a quarterly assessment of its deferred tax assets and liabilities. FASB ASC Topic 740, <i>Income Taxes</i> (ASC 740) limits the ability to use future taxable income to support the realization of deferred tax assets when a company has experienced a history of losses even if future taxable income is supported by detailed forecasts and projections. </font></div> <div><font style="font-face: Times New Roman" size="3" color="#000000"></font><font style="font-face: Times New Roman" size="2" color="#000000">In assessing the realizability of deferred tax assets, the Company considers whether it is more likely than not that some portion or all of the deferred tax assets will not be realized. The ultimate realization of deferred tax assets is dependent upon the generation of future taxable income during the periods in which those temporary differences become deductible. The Company considers the scheduled reversal of deferred tax liabilities, projected future taxable income, and tax planning strategies in making this assessment. The Company concluded that during the first six months of 2011, a net increase to the valuation allowance of $8,083 would be necessary to offset additional deferred tax assets. Of this amount, a $8,956 increase was recognized through the Condensed Consolidated Statement of Operations and a $873 decrease was recognized through accumulated other comprehensive loss.</font></div> <div><font style="font-face: Times New Roman" size="3" color="#000000"></font><font style="font-face: Times New Roman" size="2" color="#000000">The realization of the remaining deferred tax assets is primarily dependent on the scheduled reversals of deferred taxes. Any changes in the scheduled reversals of deferred taxes may require an additional valuation allowance against the remaining deferred tax assets. Any increase or decrease in the valuation allowance could result in an increase or decrease in income tax expense in the period of adjustment. </font></div> <div><font style="font-face: Times New Roman" size="3" color="#000000"></font><font style="font-face: Times New Roman" size="2" color="#000000">        The computation of the annual expected effective tax rate at each interim period requires certain estimates and assumptions including, but not limited to, the expected operating income for the year, projections of the proportion of income (or loss), permanent and temporary differences, including the likelihood of recovering deferred tax assets generated in the current year. The accounting estimates used to compute the provision for income taxes may change as new events occur, more experience is acquired, or as additional information is obtained. To the extent that the estimated annual effective tax rate changes during a quarter, the effect of the change on prior quarters is included in tax expense for the current quarter. </font></div> <div><font style="font-face: Times New Roman" size="3" color="#000000"></font><font style="font-face: Times New Roman" size="2" color="#000000">For the six months ended June 26, 2011, the expected federal tax benefit at 34% is $7,885. The difference between the expected tax rate and the effective tax rate is primarily attributable to the tax effect of the federal valuation allowance of $7,778 and the tax effect related to non-deductible expenses of $107. </font></div> <div><font style="font-face: Times New Roman" size="3" color="#000000"></font><font style="font-face: Times New Roman" size="2" color="#000000">The Company and its subsidiaries file a U.S. federal consolidated income tax return. The U.S. federal and state statute of limitations generally remains open for the 2007 tax year and beyond. </font></div> <div><font style="font-face: Times New Roman" size="3" color="#000000"></font><font style="font-face: Times New Roman" size="2" color="#000000">In accordance with ASC 740, the Company recognizes penalties and interest relating to uncertain tax positions in the provision for income taxes. As of June 26, 2011, and December 31, 2010, the Company had unrecognized tax benefits of approximately $4,981 and $4,913, respectively. The Company did not record significant amounts of interest and penalties related to unrecognized tax benefits for the periods ending June 26, 2011 and December 31, 2010.  The Company does not expect significant changes in unrecognized tax benefits within the next 12 months.  </font></div> <div><font style="font-face: Times New Roman" size="3" color="#000000"></font><font style="font-face: Times New Roman" size="1" color="#000000"> </font></div> <div><font style="font-face: Times New Roman" size="3" color="#000000"></font></div>

546327000

523084000

17101000

14141000

-22803000

-23259000

26766000

-5330000

1285000

31652000

1670000

-5067000

13536000

6159000

-156000

12792000

1400000

1314000

922000

9819000

-21006000

13436000

12462000

5182000

6836000

6462000

5182000

<div><font style="font-face: Times New Roman" size="2" color="#000000"><b>(8) Related Party Transactions </b></font></div> <div><font style="font-face: Times New Roman" size="3" color="#000000"></font><font style="font-face: Times New Roman" size="2" color="#000000"><i><b>Fortress Investment Group, LLC </b></i></font></div> <div><font style="font-face: Times New Roman" size="3" color="#000000"></font><font style="font-face: Times New Roman" size="2" color="#000000">On May 9, 2005, FIF III, FIF III Liberty Acquisitions, LLC, a wholly-owned subsidiary of FIF III (Merger Subsidiary), and the Company entered into an agreement that provided for the merger of Merger Subsidiary with and into the Company, with the Company continuing as a wholly-owned subsidiary of FIF III (the Merger). The Merger was completed on June 6, 2005. FIF III is an affiliate of Fortress Investment Group LLC (Fortress).</font></div> <div><font style="font-face: Times New Roman" size="3" color="#000000"></font><font style="font-face: Times New Roman" size="2" color="#000000">As of June 26, 2011, Fortress and its affiliates beneficially owned approximately 39.6% of the Company's outstanding common stock. </font></div> <div><font style="font-face: Times New Roman" size="3" color="#000000"></font><font style="font-face: Times New Roman" size="2" color="#000000">In addition, the Company's Chairman, Wesley Edens, is also the Co-Chairman of the board of directors of Fortress. The Company does not pay Mr. Edens a salary or any other form of compensation. </font></div> <div><font style="font-face: Times New Roman" size="3" color="#000000"></font><font style="font-face: Times New Roman" size="2" color="#000000">Affiliates of Fortress own $124,549 of the $1,181,238 outstanding under the 2007 Credit Facility, as amended as of June 26, 2011. These amounts were purchased on arms' length terms in secondary market transactions. </font></div> <div><font style="font-face: Times New Roman" size="3" color="#000000"></font><font style="font-face: Times New Roman" size="2" color="#000000">On August 21, 2008, FIF III purchased an aggregate of $11,500 in 10% cumulative preferred stock of GateHouse Media Macomb. The preferred stock was issued on August 21, 2008. Macomb, an Unrestricted Subsidiary under the terms of the 2007 Credit Facility, used the proceeds from such sale of preferred stock to make an $11,500 cash investment in Holdco non-voting 10% cumulative preferred stock. On December 7, 2010, FIF III exercised its right to require the Company to purchase its Macomb preferred stock. The Company paid the purchase price of $14,144 on December 8, 2010, which represented the sum of original purchase price of $11,500 paid by FIF III for the Macomb preferred stock and accrued but unpaid dividends of $2,644. </font></div> <div><font style="font-face: Times New Roman" size="3" color="#000000"></font><font style="font-face: Times New Roman" size="2" color="#000000">On October 24, 2006, the Company entered into an Investor Rights Agreement with FIF III. The Investor Rights Agreement provides FIF III with certain rights with respect to the nomination of directors to the Company's board of directors as well as registration rights for securities of the Company owned by Fortress. </font></div> <div><font style="font-face: Times New Roman" size="3" color="#000000"></font><font style="font-face: Times New Roman" size="2" color="#000000">The Investor Rights Agreement requires the Company to take all necessary or desirable action within its control to elect to its board of directors so long as Fortress beneficially owns (i) more than 50% of the voting power of the Company, four directors nominated by FIG Advisors LLC, an affiliate of Fortress (FIG Advisors), or such other party nominated by Fortress; (ii) between 25% and 50% of the voting power of the Company, three directors nominated by FIG Advisors; (iii) between 10% and 25% of the voting power of the Company, two directors nominated by FIG Advisors; and (iv) between 5% and 10% of the voting power of the Company, one director nominated by FIG Advisors. In the event that any designee of FIG Advisors shall for any reason cease to serve as a member of the board of directors during his term of office, FIG Advisors will be entitled to nominate an individual to fill the resulting vacancy on the board of directors. </font></div> <div><font style="font-face: Times New Roman" size="3" color="#000000"></font><font style="font-face: Times New Roman" size="2" color="#000000">Pursuant to the Investor Rights Agreement, the Company has granted FIF III, for so long as it or its permitted transferees beneficially own an amount of the Company's common stock at least equal to 5% or more of the Company's common stock issued and outstanding immediately after the consummation of its IPO (a Registrable Amount), demand registration rights that allow FIF III at any time to request that the Company register under the Securities Act of 1933, as amended, an amount equal to or greater than a Registrable Amount (as defined in the Investor Rights Agreement). FIF III is entitled to an aggregate of four demand registrations. The Company is not required to maintain the effectiveness of the registration statement for more than 60 days. The Company is also not required to effect any demand registration within nine months of a firm commitment underwritten offering to which the requestor held piggyback rights and which included at least 50% of the securities requested by the requestor to be included. The Company is not obligated to grant a request for a demand registration within four months of any other demand registration and may refuse a request for demand registration if, in the Company's reasonable judgment, it is not feasible for the Company to proceed with the registration because of the unavailability of audited financial statements. </font></div> <div><font style="font-face: Times New Roman" size="3" color="#000000"></font><font style="font-face: Times New Roman" size="2" color="#000000">FIF III also has piggyback registration rights that allow FIF III to include the shares of common stock that FIF III and its permitted transferees own in any public offering of equity securities initiated by the Company (other than those public offerings pursuant to registration statements on Forms S-4 or S-8) or by any of the Company's other stockholders that may have registration rights in the future. The piggyback registration rights of FIF III are subject to proportional cutbacks based on the manner of the offering and the identity of the party initiating such offering. </font></div> <div><font style="font-face: Times New Roman" size="3" color="#000000"></font><font style="font-face: Times New Roman" size="2" color="#000000">The Company has additionally granted FIF III and its permitted transferees for as long as Fortress beneficially owns a Registrable Amount, the right to request shelf registrations on Form S-3, providing for an offering to be made on a continuous basis, subject to a time limit on the Company's efforts to keep the shelf registration statement continuously effective and the Company's right to suspend the use of a shelf registration prospectus for a reasonable period of time (not exceeding 60 days in succession or 90 days in the aggregate in any 12-month period) if the Company determines that certain disclosures required by the shelf registration statement would be detrimental to the Company or the Company's stockholders. </font></div> <div><font style="font-face: Times New Roman" size="3" color="#000000"></font><font style="font-face: Times New Roman" size="2" color="#000000">The Company has agreed to indemnify FIF III and its permitted transferees against any losses or damages resulting from any untrue statement or omission of material fact in any registration statement or prospectus pursuant to which FIF III and its permitted transferees sells shares of the Company's common stock, unless such liability arose from FIF III misstatement or omission, and Parent has agreed to indemnify the Company against all losses caused by its misstatements or omissions. The Company will pay all expenses incident to registration and Fortress will pay its respective portions of all underwriting discounts, commissions and transfer taxes relating to the sale of its shares under such a registration statement. </font></div> <div><font style="font-face: Times New Roman" size="3" color="#000000"></font></div>

-792121000

-812676000

-10517000

1338448000

1335760000

-11249000

-158000

5905000

-134000

9866000

7866000

4334000

5954000

3654000

2025000

68548000

2025000

64932000

9738000

23496000

34459000

32763000

21830000

23879000

<div><font style="font-face: Times New Roman" size="2" color="#000000"><b>(7) Derivative Instruments </b></font></div> <div><font style="font-face: Times New Roman" size="3" color="#000000"></font><font style="font-face: Times New Roman" size="2" color="#000000">The Company uses certain derivative financial instruments to hedge the aggregate risk of interest rate fluctuations with respect to its long-term debt, which requires payments based on a variable interest rate index. These risks include: increases in debt rates above the earnings of the encumbered assets, increases in debt rates resulting in the failure of certain debt ratio covenants, increases in debt rates such that assets can no longer be refinanced, and earnings volatility. </font></div> <div><font style="font-face: Times New Roman" size="3" color="#000000"></font><font style="font-face: Times New Roman" size="2" color="#000000">In order to reduce such risks, the Company primarily uses interest rate swap agreements to change floating-rate long-term debt to fixed-rate long-term debt. This type of hedge is intended to qualify as a cash-flow hedge under FASB ASC Topic 815, <i>Derivatives and Hedging</i> (ASC 815). For these instruments, the effective portion of the change in the fair value of the derivative is recorded in accumulated other comprehensive loss in the Condensed Consolidated Statement of Stockholders' Equity (Deficit) and recognized in the Condensed Consolidated Statement of Operations in the same period in which the hedged transaction impacts earnings. The ineffective portion of the change in the fair value of the derivative is immediately recognized in earnings. </font></div> <div align="center"><font style="font-face: Times New Roman" size="3" color="#000000"></font><font style="font-face: Times New Roman" size="2" color="#000000"><b>Fair Values of Derivative Instruments </b></font></div> <div><font style="font-face: Times New Roman" size="3" color="#000000"></font><font style="font-face: Times New Roman" size="2" color="#000000"> </font></div> <div><font style="font-face: Times New Roman" size="2" color="#000000"></font></div> <table border="0" cellspacing="0" cellpadding="0"> <tr> <td width="261"><div> </div></td> <td width="5"><div> </div></td> <td width="123"><div> </div></td> <td width="5"><div> </div></td> <td width="6"><div> </div></td> <td width="37"><div> </div></td> <td width="6"><div> </div></td> <td width="5"><div> </div></td> <td width="123"><div> </div></td> <td width="5"><div> </div></td> <td width="6"><div> </div></td> <td width="37"><div> </div></td> <td width="6"><div> </div></td> </tr> <tr> <td width="261"><div><font style="font-face: Times New Roman" size="1" color="#000000"> </font></div></td> <td width="5"><div><font style="font-face: Times New Roman" size="1" color="#000000">  </font></div></td> <td colspan="10" width="357"><div align="center"><font style="font-face: Times New Roman" size="1" color="#000000"><b>Liability Derivatives</b></font></div></td> <td width="6"><div><font style="font-face: Times New Roman" size="1" color="#000000"> </font></div></td> </tr> <tr> <td width="261"><div><font style="font-face: Times New Roman" size="1" color="#000000"> </font></div></td> <td width="5"><div><font style="font-face: Times New Roman" size="1" color="#000000">  </font></div></td> <td colspan="4" width="172"><div align="center"><font style="font-face: Times New Roman" size="1" color="#000000"><b>June 26, 2011</b></font></div></td> <td width="6"><div><font style="font-face: Times New Roman" size="1" color="#000000"> </font></div></td> <td width="5"><div><font style="font-face: Times New Roman" size="1" color="#000000">  </font></div></td> <td colspan="4" width="172"><div align="center"><font style="font-face: Times New Roman" size="1" color="#000000"><b>December 31, 2010</b></font></div></td> <td width="6"><div><font style="font-face: Times New Roman" size="1" color="#000000"> </font></div></td> </tr> <tr> <td width="261"><div><font style="font-face: Times New Roman" size="1" color="#000000"> </font></div></td> <td width="5"><div><font style="font-face: Times New Roman" size="1" color="#000000">  </font></div></td> <td width="123"><div align="center"><font style="font-face: Times New Roman" size="1" color="#000000"><b>Balance</b></font></div><div align="center"><font style="font-face: Times New Roman" size="3" color="#000000"></font><font style="font-face: Times New Roman" size="1" color="#000000"><b>Sheet</b></font></div><div align="center"><font style="font-face: Times New Roman" size="3" color="#000000"></font><font style="font-face: Times New Roman" size="1" color="#000000"><b>Location</b></font></div></td> <td width="5"><div><font style="font-face: Times New Roman" size="1" color="#000000">  </font></div></td> <td colspan="2" width="43"><div align="center"><font style="font-face: Times New Roman" size="1" color="#000000"><b>Fair</b></font></div><div align="center"><font style="font-face: Times New Roman" size="1" color="#000000"><b>Value</b></font></div></td> <td width="6"><div><font style="font-face: Times New Roman" size="1" color="#000000"> </font></div></td> <td width="5"><div><font style="font-face: Times New Roman" size="1" color="#000000">  </font></div></td> <td width="123"><div align="center"><font style="font-face: Times New Roman" size="1" color="#000000"><b>Balance</b></font></div><div align="center"><font style="font-face: Times New Roman" size="3" color="#000000"></font><font style="font-face: Times New Roman" size="1" color="#000000"><b>Sheet</b></font></div><div align="center"><font style="font-face: Times New Roman" size="3" color="#000000"></font><font style="font-face: Times New Roman" size="1" color="#000000"><b>Location</b></font></div></td> <td width="5"><div><font style="font-face: Times New Roman" size="1" color="#000000">  </font></div></td> <td colspan="2" width="43"><div align="center"><font style="font-face: Times New Roman" size="1" color="#000000"><b>Fair</b></font></div><div align="center"><font style="font-face: Times New Roman" size="1" color="#000000"><b>Value</b></font></div></td> <td width="6"><div><font style="font-face: Times New Roman" size="1" color="#000000"> </font></div></td> </tr> <tr> <td width="261" bgcolor="#cceeff"><div><font style="font-face: Times New Roman" size="2" color="#000000"><b>Derivative designed as hedging</b></font></div><div><font style="font-face: Times New Roman" size="2" color="#000000"><b>instruments under ASC 815</b></font></div></td> <td width="5" bgcolor="#cceeff"><div><font style="font-face: Times New Roman" size="1" color="#000000">  </font></div></td> <td width="123" bgcolor="#cceeff"><div> </div></td> <td width="5" bgcolor="#cceeff"><div><font style="font-face: Times New Roman" size="1" color="#000000">  </font></div></td> <td width="6" bgcolor="#cceeff"><div> </div></td> <td width="37" bgcolor="#cceeff"><div> </div></td> <td width="6" bgcolor="#cceeff"><div> </div></td> <td width="5" bgcolor="#cceeff"><div><font style="font-face: Times New Roman" size="1" color="#000000">  </font></div></td> <td width="123" bgcolor="#cceeff"><div> </div></td> <td width="5" bgcolor="#cceeff"><div><font style="font-face: Times New Roman" size="1" color="#000000">  </font></div></td> <td width="6" bgcolor="#cceeff"><div> </div></td> <td width="37" bgcolor="#cceeff"><div> </div></td> <td width="6" bgcolor="#cceeff"><div> </div></td> </tr> <tr> <td width="261"><div><font style="font-face: Times New Roman" size="2" color="#000000">Interest rate swaps</font></div></td> <td width="5"><div><font style="font-face: Times New Roman" size="1" color="#000000">  </font></div></td> <td width="123"><div><font style="font-face: Times New Roman" size="2" color="#000000">Derivative Instruments</font></div></td> <td width="5"><div><font style="font-face: Times New Roman" size="1" color="#000000">  </font></div></td> <td width="6"><div><font style="font-face: Times New Roman" size="2" color="#000000">$</font></div></td> <td width="37"><div align="right"><font style="font-face: Times New Roman" size="2" color="#000000">63,885</font></div></td> <td width="6"><div><font style="font-face: Times New Roman" size="2" color="#000000">  </font></div></td> <td width="5"><div><font style="font-face: Times New Roman" size="1" color="#000000">  </font></div></td> <td width="123"><div><font style="font-face: Times New Roman" size="2" color="#000000">Derivative Instruments</font></div></td> <td width="5"><div><font style="font-face: Times New Roman" size="1" color="#000000">  </font></div></td> <td width="6"><div><font style="font-face: Times New Roman" size="2" color="#000000">$</font></div></td> <td width="37"><div align="right"><font style="font-face: Times New Roman" size="2" color="#000000">65,490</font></div></td> <td width="6"><div><font style="font-face: Times New Roman" size="2" color="#000000">  </font></div></td> </tr> <tr> <td width="261"><div> </div></td> <td width="5"><div><font style="font-face: Times New Roman" size="1" color="#000000">  </font></div></td> <td width="123"><div> </div></td> <td width="5"><div><font style="font-face: Times New Roman" size="1" color="#000000">  </font></div></td> <td width="6"><div><font style="font-face: Times New Roman" size="1" color="#000000"> </font></div></td> <td width="37"><div><font style="font-face: Times New Roman" size="1" color="#000000"> </font></div></td> <td width="6"><div><font style="font-face: Times New Roman" size="1" color="#000000"> </font></div></td> <td width="5"><div><font style="font-face: Times New Roman" size="1" color="#000000">  </font></div></td> <td width="123"><div> </div></td> <td width="5"><div><font style="font-face: Times New Roman" size="1" color="#000000">  </font></div></td> <td width="6"><div><font style="font-face: Times New Roman" size="1" color="#000000"> </font></div></td> <td width="37"><div><font style="font-face: Times New Roman" size="1" color="#000000"> </font></div></td> <td width="6"><div><font style="font-face: Times New Roman" size="1" color="#000000"> </font></div></td> </tr> <tr> <td width="261" bgcolor="#cceeff"><div><font style="font-face: Times New Roman" size="2" color="#000000"><b>Total derivatives</b></font></div></td> <td width="5" bgcolor="#cceeff"><div><font style="font-face: Times New Roman" size="1" color="#000000">  </font></div></td> <td width="123" bgcolor="#cceeff"><div> </div></td> <td width="5" bgcolor="#cceeff"><div><font style="font-face: Times New Roman" size="1" color="#000000">  </font></div></td> <td width="6" bgcolor="#cceeff"><div><font style="font-face: Times New Roman" size="2" color="#000000">$</font></div></td> <td width="37" bgcolor="#cceeff"><div align="right"><font style="font-face: Times New Roman" size="2" color="#000000">63,885</font></div></td> <td width="6" bgcolor="#cceeff"><div><font style="font-face: Times New Roman" size="2" color="#000000">  </font></div></td> <td width="5" bgcolor="#cceeff"><div><font style="font-face: Times New Roman" size="1" color="#000000">  </font></div></td> <td width="123" bgcolor="#cceeff"><div> </div></td> <td width="5" bgcolor="#cceeff"><div><font style="font-face: Times New Roman" size="1" color="#000000">  </font></div></td> <td width="6" bgcolor="#cceeff"><div><font style="font-face: Times New Roman" size="2" color="#000000">$</font></div></td> <td width="37" bgcolor="#cceeff"><div align="right"><font style="font-face: Times New Roman" size="2" color="#000000">65,490</font></div></td> <td width="6" bgcolor="#cceeff"><div><font style="font-face: Times New Roman" size="2" color="#000000">  </font></div></td> </tr> <tr> <td width="261"><div> </div></td> <td width="5"><div><font style="font-face: Times New Roman" size="1" color="#000000">  </font></div></td> <td width="123"><div> </div></td> <td width="5"><div><font style="font-face: Times New Roman" size="1" color="#000000">  </font></div></td> <td width="6"><div><font style="font-face: Times New Roman" size="1" color="#000000"> </font></div></td> <td width="37"><div><font style="font-face: Times New Roman" size="1" color="#000000"> </font></div></td> <td width="6"><div><font style="font-face: Times New Roman" size="1" color="#000000"> </font></div></td> <td width="5"><div><font style="font-face: Times New Roman" size="1" color="#000000">  </font></div></td> <td width="123"><div> </div></td> <td width="5"><div><font style="font-face: Times New Roman" size="1" color="#000000">  </font></div></td> <td width="6"><div><font style="font-face: Times New Roman" size="1" color="#000000"> </font></div></td> <td width="37"><div><font style="font-face: Times New Roman" size="1" color="#000000"> </font></div></td> <td width="6"><div><font style="font-face: Times New Roman" size="1" color="#000000"> </font></div></td> </tr> </table> <div align="center"><font style="font-face: Times New Roman" size="2" color="#000000"><b>The Effect of Derivative Instruments on the Statement of Operations </b></font></div> <div align="center"><font style="font-face: Times New Roman" size="3" color="#000000"></font><font style="font-face: Times New Roman" size="2" color="#000000"><b>for the Three Months Ended June 26, 2011 and June 30, 2010 </b></font></div> <div><font style="font-face: Times New Roman" size="3" color="#000000"></font><font style="font-face: Times New Roman" size="2" color="#000000"> </font></div> <div><font style="font-face: Times New Roman" size="2" color="#000000"></font></div> <table border="0" cellspacing="0" cellpadding="0"> <tr> <td width="249"><div> </div></td> <td width="7"><div> </div></td> <td width="192"><div> </div></td> <td width="7"><div> </div></td> <td width="9"><div> </div></td> <td width="26"><div> </div></td> <td width="11"><div> </div></td> <td width="7"><div> </div></td> <td width="9"><div> </div></td> <td width="50"><div> </div></td> <td width="7"><div> </div></td> </tr> <tr> <td width="249"><div><font style="font-face: Times New Roman" size="1" color="#000000"> </font></div></td> <td width="7"><div><font style="font-face: Times New Roman" size="1" color="#000000">  </font></div></td> <td width="192"><div align="center"><font style="font-face: Times New Roman" size="1" color="#000000"><b>Location of Gain or (Loss)</b></font></div><div align="center"><font style="font-face: Times New Roman" size="3" color="#000000"></font><font style="font-face: Times New Roman" size="1" color="#000000"><b>Recognized in Income on</b></font></div></td> <td width="7"><div><font style="font-face: Times New Roman" size="1" color="#000000">  </font></div></td> <td colspan="6" width="115"><div align="center"><font style="font-face: Times New Roman" size="1" color="#000000"><b>Amount of Gain or (Loss)</b></font></div><div align="center"><font style="font-face: Times New Roman" size="1" color="#000000"><b>Recognized in Income  on</b></font></div><div align="center"><font style="font-face: Times New Roman" size="1" color="#000000"><b>Derivative</b></font></div></td> <td width="7"><div><font style="font-face: Times New Roman" size="1" color="#000000"> </font></div></td> </tr> <tr> <td width="249"><div><font style="font-face: Times New Roman" size="1" color="#000000"><b>Derivatives in ASC 815 Fair Value Hedging Relationships</b></font></div></td> <td width="7"><div><font style="font-face: Times New Roman" size="1" color="#000000">  </font></div></td> <td width="192"><div align="center"><font style="font-face: Times New Roman" size="1" color="#000000"><b>Derivative</b></font></div></td> <td width="7"><div><font style="font-face: Times New Roman" size="1" color="#000000">  </font></div></td> <td colspan="2" width="35"><div align="center"><font style="font-face: Times New Roman" size="1" color="#000000"><b>2011</b></font></div></td> <td width="11"><div><font style="font-face: Times New Roman" size="1" color="#000000"> </font></div></td> <td width="7"><div><font style="font-face: Times New Roman" size="1" color="#000000"> </font></div></td> <td colspan="2" width="60"><div align="center"><font style="font-face: Times New Roman" size="1" color="#000000"><b>2010</b></font></div></td> <td width="7"><div><font style="font-face: Times New Roman" size="1" color="#000000"> </font></div></td> </tr> <tr> <td width="249" bgcolor="#cceeff"><div><font style="font-face: Times New Roman" size="2" color="#000000">Interest rate swaps</font></div></td> <td width="7" bgcolor="#cceeff"><div><font style="font-face: Times New Roman" size="1" color="#000000">  </font></div></td> <td width="192" bgcolor="#cceeff"><div align="center"><font style="font-face: Times New Roman" size="2" color="#000000">Loss on derivative instruments</font></div></td> <td width="7" bgcolor="#cceeff"><div><font style="font-face: Times New Roman" size="1" color="#000000">  </font></div></td> <td width="9" bgcolor="#cceeff"><div><font style="font-face: Times New Roman" size="2" color="#000000">$</font></div></td> <td width="26" bgcolor="#cceeff"><div align="right"><font style="font-face: Times New Roman" size="2" color="#000000">(41</font></div></td> <td width="11" bgcolor="#cceeff"><div><font style="font-face: Times New Roman" size="2" color="#000000">) </font></div></td> <td width="7" bgcolor="#cceeff"><div><font style="font-face: Times New Roman" size="1" color="#000000"> </font></div></td> <td width="9" bgcolor="#cceeff"><div><font style="font-face: Times New Roman" size="2" color="#000000">$</font></div></td> <td width="50" bgcolor="#cceeff"><div align="right"><font style="font-face: Times New Roman" size="2" color="#000000">(2,559</font></div></td> <td width="7" bgcolor="#cceeff"><div><font style="font-face: Times New Roman" size="2" color="#000000">) </font></div></td> </tr> </table> <div><font style="font-face: Times New Roman" size="2" color="#000000"> </font></div> <div><font style="font-face: Times New Roman" size="2" color="#000000"></font></div> <table border="0" cellspacing="0" cellpadding="0"> <tr> <td width="103"><div> </div></td> <td width="5"><div> </div></td> <td width="6"><div> </div></td> <td width="29"><div> </div></td> <td width="6"><div> </div></td> <td width="5"><div> </div></td> <td width="6"><div> </div></td> <td width="33"><div> </div></td> <td width="5"><div> </div></td> <td width="5"><div> </div></td> <td width="82"><div> </div></td> <td width="5"><div> </div></td> <td width="7"><div> </div></td> <td width="38"><div> </div></td> <td width="8"><div> </div></td> <td width="5"><div> </div></td> <td width="7"><div> </div></td> <td width="46"><div> </div></td> <td width="5"><div> </div></td> <td width="5"><div> </div></td> <td width="83"><div> </div></td> <td width="5"><div> </div></td> <td width="15"><div> </div></td> <td width="37"><div> </div></td> <td width="7"><div> </div></td> <td width="5"><div> </div></td> <td width="15"><div> </div></td> <td width="30"><div> </div></td> <td width="5"><div> </div></td> </tr> <tr> <td rowspan="2" width="103"><div><font style="font-face: Times New Roman" size="1" color="#000000"><b>Derivatives in ASC</b></font></div><div><font style="font-face: Times New Roman" size="1" color="#000000"><b>815 Fair Value Hedging</b></font></div><div><font style="font-face: Times New Roman" size="1" color="#000000"><b>Relationships</b></font></div></td> <td width="5"><div><font style="font-face: Times New Roman" size="1" color="#000000"> </font></div></td> <td colspan="6" width="88"><div align="center"><font style="font-face: Times New Roman" size="1" color="#000000"><b>Amount of Gain or  (Loss)</b></font></div><div align="center"><font style="font-face: Times New Roman" size="3" color="#000000"></font><font style="font-face: Times New Roman" size="1" color="#000000"><b>Recognized in  Other</b></font></div><div align="center"><font style="font-face: Times New Roman" size="3" color="#000000"></font><font style="font-face: Times New Roman" size="1" color="#000000"><b>Comprehensive</b></font></div><div align="center"><font style="font-face: Times New Roman" size="3" color="#000000"></font><font style="font-face: Times New Roman" size="1" color="#000000"><b>Income (OCI)</b></font></div><div align="center"><font style="font-face: Times New Roman" size="3" color="#000000"></font><font style="font-face: Times New Roman" size="1" color="#000000"><b>on Derivative</b></font></div><div align="center"><font style="font-face: Times New Roman" size="3" color="#000000"></font><font style="font-face: Times New Roman" size="1" color="#000000"><b>(Effective Portion)</b></font></div></td> <td width="5"><div><font style="font-face: Times New Roman" size="1" color="#000000"> </font></div></td> <td width="5"><div><font style="font-face: Times New Roman" size="1" color="#000000"> </font></div></td> <td width="82"><div align="center"><font style="font-face: Times New Roman" size="1" color="#000000"><b>Location of</b></font></div><div align="center"><font style="font-face: Times New Roman" size="3" color="#000000"></font><font style="font-face: Times New Roman" size="1" color="#000000"><b>Gain or (Loss)</b></font></div><div align="center"><font style="font-face: Times New Roman" size="1" color="#000000"><b>Reclassified from</b></font></div><div align="center"><font style="font-face: Times New Roman" size="1" color="#000000"><b>Accumulated OCI</b></font></div><div align="center"><font style="font-face: Times New Roman" size="1" color="#000000"><b>into Income</b></font></div></td> <td width="5"><div><font style="font-face: Times New Roman" size="1" color="#000000"> </font></div></td> <td colspan="6" width="114"><div align="center"><font style="font-face: Times New Roman" size="1" color="#000000"><b>Amount of Gain or (Loss)</b></font></div><div align="center"><font style="font-face: Times New Roman" size="1" color="#000000"><b>Reclassified from</b></font></div><div align="center"><font style="font-face: Times New Roman" size="3" color="#000000"></font><font style="font-face: Times New Roman" size="1" color="#000000"><b>Accumulated</b></font></div><div align="center"><font style="font-face: Times New Roman" size="3" color="#000000"></font><font style="font-face: Times New Roman" size="1" color="#000000"><b>OCI into Income</b></font></div><div align="center"><font style="font-face: Times New Roman" size="3" color="#000000"></font><font style="font-face: Times New Roman" size="1" color="#000000"><b>(Effective Portion)</b></font></div></td> <td width="5"><div><font style="font-face: Times New Roman" size="1" color="#000000"> </font></div></td> <td width="5"><div><font style="font-face: Times New Roman" size="1" color="#000000"> </font></div></td> <td width="83"><div align="center"><font style="font-face: Times New Roman" size="1" color="#000000"><b>Location of</b></font></div><div align="center"><font style="font-face: Times New Roman" size="3" color="#000000"></font><font style="font-face: Times New Roman" size="1" color="#000000"><b>Gain or (Loss)</b></font></div><div align="center"><font style="font-face: Times New Roman" size="1" color="#000000"><b>Recognized in</b></font></div><div align="center"><font style="font-face: Times New Roman" size="1" color="#000000"><b>Income on</b></font></div><div align="center"><font style="font-face: Times New Roman" size="3" color="#000000"></font><font style="font-face: Times New Roman" size="1" color="#000000"><b>Derivative</b></font></div><div align="center"><font style="font-face: Times New Roman" size="1" color="#000000"><b>(Ineffective Portion</b></font></div><div align="center"><font style="font-face: Times New Roman" size="1" color="#000000"><b>and Amount</b></font></div><div align="center"><font style="font-face: Times New Roman" size="1" color="#000000"><b>Excluded from</b></font></div><div align="center"><font style="font-face: Times New Roman" size="3" color="#000000"></font><font style="font-face: Times New Roman" size="1" color="#000000"><b>Effectiveness</b></font></div></td> <td width="5"><div><font style="font-face: Times New Roman" size="1" color="#000000"> </font></div></td> <td colspan="6" width="111"><div align="center"><font style="font-face: Times New Roman" size="1" color="#000000"><b>Amount of Gain or  (Loss)</b></font></div><div align="center"><font style="font-face: Times New Roman" size="3" color="#000000"></font><font style="font-face: Times New Roman" size="1" color="#000000"><b>Recognized in Income on</b></font></div><div align="center"><font style="font-face: Times New Roman" size="1" color="#000000"><b>Derivative (Ineffective</b></font></div><div align="center"><font style="font-face: Times New Roman" size="1" color="#000000"><b>Portion and  Amount</b></font></div><div align="center"><font style="font-face: Times New Roman" size="3" color="#000000"></font><font style="font-face: Times New Roman" size="1" color="#000000"><b>Excluded from</b></font></div><div align="center"><font style="font-face: Times New Roman" size="1" color="#000000"><b>Effectiveness Testing)</b></font></div></td> <td width="5"><div><font style="font-face: Times New Roman" size="1" color="#000000"> </font></div></td> </tr> <tr> <td width="5"><div><font style="font-face: Times New Roman" size="1" color="#000000"> </font></div></td> <td colspan="2" width="36"><div align="center"><font style="font-face: Times New Roman" size="1" color="#000000"><b>2011</b></font></div></td> <td width="6"><div><font style="font-face: Times New Roman" size="1" color="#000000"> </font></div></td> <td width="5"><div><font style="font-face: Times New Roman" size="1" color="#000000"> </font></div></td> <td colspan="2" width="40"><div align="center"><font style="font-face: Times New Roman" size="1" color="#000000"><b>2010</b></font></div></td> <td width="5"><div><font style="font-face: Times New Roman" size="1" color="#000000"> </font></div></td> <td width="5"><div><font style="font-face: Times New Roman" size="1" color="#000000"> </font></div></td> <td width="82"><div align="center"><font style="font-face: Times New Roman" size="1" color="#000000"><b>(Effective Portion)</b></font></div></td> <td width="5"><div><font style="font-face: Times New Roman" size="1" color="#000000"> </font></div></td> <td colspan="2" width="46"><div align="center"><font style="font-face: Times New Roman" size="1" color="#000000"><b>2011</b></font></div></td> <td width="8"><div><font style="font-face: Times New Roman" size="1" color="#000000"> </font></div></td> <td width="5"><div><font style="font-face: Times New Roman" size="1" color="#000000"> </font></div></td> <td colspan="2" width="53"><div align="center"><font style="font-face: Times New Roman" size="1" color="#000000"><b>2010</b></font></div></td> <td width="5"><div><font style="font-face: Times New Roman" size="1" color="#000000"> </font></div></td> <td width="5"><div><font style="font-face: Times New Roman" size="1" color="#000000"> </font></div></td> <td width="83"><div align="center"><font style="font-face: Times New Roman" size="1" color="#000000"><b>Testing)</b></font></div></td> <td width="5"><div><font style="font-face: Times New Roman" size="1" color="#000000"> </font></div></td> <td colspan="2" width="52"><div align="center"><font style="font-face: Times New Roman" size="1" color="#000000"><b>2011</b></font></div></td> <td width="7"><div><font style="font-face: Times New Roman" size="1" color="#000000"> </font></div></td> <td width="5"><div><font style="font-face: Times New Roman" size="1" color="#000000"> </font></div></td> <td colspan="2" width="45"><div align="center"><font style="font-face: Times New Roman" size="1" color="#000000"><b>2010</b></font></div></td> <td width="5"><div><font style="font-face: Times New Roman" size="1" color="#000000"> </font></div></td> </tr> <tr> <td width="103" bgcolor="#cceeff"><div><font style="font-face: Times New Roman" size="1" color="#000000">Interest rate swaps</font></div></td> <td width="5" bgcolor="#cceeff"><div><font style="font-face: Times New Roman" size="1" color="#000000"> </font></div></td> <td width="6" bgcolor="#cceeff"><div><font style="font-face: Times New Roman" size="1" color="#000000">$</font></div></td> <td width="29" bgcolor="#cceeff"><div align="right"><font style="font-face: Times New Roman" size="1" color="#000000">5,764</font></div></td> <td width="6" bgcolor="#cceeff"><div><font style="font-face: Times New Roman" size="1" color="#000000">  </font></div></td> <td width="5" bgcolor="#cceeff"><div><font style="font-face: Times New Roman" size="1" color="#000000"> </font></div></td> <td width="6" bgcolor="#cceeff"><div><font style="font-face: Times New Roman" size="1" color="#000000">$</font></div></td> <td width="33" bgcolor="#cceeff"><div align="right"><font style="font-face: Times New Roman" size="1" color="#000000">(8,973</font></div></td> <td width="5" bgcolor="#cceeff"><div><font style="font-face: Times New Roman" size="1" color="#000000">) </font></div></td> <td width="5" bgcolor="#cceeff"><div><font style="font-face: Times New Roman" size="1" color="#000000"> </font></div></td> <td width="82" bgcolor="#cceeff"><div align="right"><font style="font-face: Times New Roman" size="1" color="#000000">Interest income/ (expense)</font></div></td> <td width="5" bgcolor="#cceeff"><div><font style="font-face: Times New Roman" size="1" color="#000000"> </font></div></td> <td width="7" bgcolor="#cceeff"><div><font style="font-face: Times New Roman" size="1" color="#000000">$</font></div></td> <td width="38" bgcolor="#cceeff"><div align="right"><font style="font-face: Times New Roman" size="1" color="#000000">(7,670</font></div></td> <td width="8" bgcolor="#cceeff"><div><font style="font-face: Times New Roman" size="1" color="#000000">) </font></div></td> <td width="5" bgcolor="#cceeff"><div><font style="font-face: Times New Roman" size="1" color="#000000"> </font></div></td> <td width="7" bgcolor="#cceeff"><div><font style="font-face: Times New Roman" size="1" color="#000000">$</font></div></td> <td width="46" bgcolor="#cceeff"><div align="right"><font style="font-face: Times New Roman" size="1" color="#000000">(10,150</font></div></td> <td width="5" bgcolor="#cceeff"><div><font style="font-face: Times New Roman" size="1" color="#000000">) </font></div></td> <td width="5" bgcolor="#cceeff"><div><font style="font-face: Times New Roman" size="1" color="#000000"> </font></div></td> <td width="83" bgcolor="#cceeff"><div align="right"><font style="font-face: Times New Roman" size="1" color="#000000">Other income/ (expense)</font></div></td> <td width="5" bgcolor="#cceeff"><div><font style="font-face: Times New Roman" size="1" color="#000000"> </font></div></td> <td width="15" bgcolor="#cceeff"><div><font style="font-face: Times New Roman" size="1" color="#000000">$</font></div></td> <td width="37" bgcolor="#cceeff"><div align="right"><font style="font-face: Times New Roman" size="1" color="#000000">  </font></div></td> <td width="7" bgcolor="#cceeff"><div><font style="font-face: Times New Roman" size="1" color="#000000"> </font></div></td> <td width="5" bgcolor="#cceeff"><div><font style="font-face: Times New Roman" size="1" color="#000000"> </font></div></td> <td width="15" bgcolor="#cceeff"><div><font style="font-face: Times New Roman" size="1" color="#000000">$</font></div></td> <td width="30" bgcolor="#cceeff"><div align="right"><font style="font-face: Times New Roman" size="1" color="#000000">63</font></div></td> <td width="5" bgcolor="#cceeff"><div><font style="font-face: Times New Roman" size="1" color="#000000">  </font></div></td> </tr> </table> <div align="center"><font style="font-face: Times New Roman" size="2" color="#000000"><b>The Effect of Derivative Instruments on the Statement of Operations </b></font></div> <div align="center"><font style="font-face: Times New Roman" size="3" color="#000000"></font><font style="font-face: Times New Roman" size="2" color="#000000"><b>for the Six Months Ended June 26, 2011 and June 30, 2010 </b></font></div> <div><font style="font-face: Times New Roman" size="3" color="#000000"></font><font style="font-face: Times New Roman" size="2" color="#000000"> </font></div> <div><font style="font-face: Times New Roman" size="2" color="#000000"></font></div> <table border="0" cellspacing="0" cellpadding="0"> <tr> <td width="249"><div> </div></td> <td width="8"><div> </div></td> <td width="190"><div> </div></td> <td width="8"><div> </div></td> <td width="8"><div> </div></td> <td width="33"><div> </div></td> <td width="10"><div> </div></td> <td width="8"><div> </div></td> <td width="8"><div> </div></td> <td width="46"><div> </div></td> <td width="7"><div> </div></td> </tr> <tr> <td width="249"><div><font style="font-face: Times New Roman" size="1" color="#000000"> </font></div></td> <td width="8"><div><font style="font-face: Times New Roman" size="1" color="#000000">  </font></div></td> <td width="190"><div align="center"><font style="font-face: Times New Roman" size="1" color="#000000"><b>Location of Gain or (Loss)</b></font></div><div align="center"><font style="font-face: Times New Roman" size="3" color="#000000"></font><font style="font-face: Times New Roman" size="1" color="#000000"><b>Recognized in Income on</b></font></div></td> <td width="8"><div><font style="font-face: Times New Roman" size="1" color="#000000">  </font></div></td> <td colspan="6" width="116"><div align="center"><font style="font-face: Times New Roman" size="1" color="#000000"><b>Amount of Gain or (Loss)</b></font></div><div align="center"><font style="font-face: Times New Roman" size="1" color="#000000"><b>Recognized in Income  on</b></font></div><div align="center"><font style="font-face: Times New Roman" size="1" color="#000000"><b>Derivative</b></font></div></td> <td width="7"><div><font style="font-face: Times New Roman" size="1" color="#000000"> </font></div></td> </tr> <tr> <td width="249"><div><font style="font-face: Times New Roman" size="1" color="#000000"><b>Derivatives in ASC 815 Fair Value Hedging Relationships</b></font></div></td> <td width="8"><div><font style="font-face: Times New Roman" size="1" color="#000000">  </font></div></td> <td width="190"><div align="center"><font style="font-face: Times New Roman" size="1" color="#000000"><b>Derivative</b></font></div></td> <td width="8"><div><font style="font-face: Times New Roman" size="1" color="#000000">  </font></div></td> <td colspan="2" width="41"><div align="center"><font style="font-face: Times New Roman" size="1" color="#000000"><b>2011</b></font></div></td> <td width="10"><div><font style="font-face: Times New Roman" size="1" color="#000000"> </font></div></td> <td width="8"><div><font style="font-face: Times New Roman" size="1" color="#000000"> </font></div></td> <td colspan="2" width="55"><div align="center"><font style="font-face: Times New Roman" size="1" color="#000000"><b>2010</b></font></div></td> <td width="7"><div><font style="font-face: Times New Roman" size="1" color="#000000"> </font></div></td> </tr> <tr> <td width="249" bgcolor="#cceeff"><div><font style="font-face: Times New Roman" size="2" color="#000000">Interest rate swaps</font></div></td> <td width="8" bgcolor="#cceeff"><div><font style="font-face: Times New Roman" size="1" color="#000000">  </font></div></td> <td width="190" bgcolor="#cceeff"><div align="center"><font style="font-face: Times New Roman" size="2" color="#000000">Loss on derivative instruments</font></div></td> <td width="8" bgcolor="#cceeff"><div><font style="font-face: Times New Roman" size="1" color="#000000">  </font></div></td> <td width="8" bgcolor="#cceeff"><div><font style="font-face: Times New Roman" size="2" color="#000000">$</font></div></td> <td width="33" bgcolor="#cceeff"><div align="right"><font style="font-face: Times New Roman" size="2" color="#000000">(421</font></div></td> <td width="10" bgcolor="#cceeff"><div><font style="font-face: Times New Roman" size="2" color="#000000">) </font></div></td> <td width="8" bgcolor="#cceeff"><div><font style="font-face: Times New Roman" size="1" color="#000000"> </font></div></td> <td width="8" bgcolor="#cceeff"><div><font style="font-face: Times New Roman" size="2" color="#000000">$</font></div></td> <td width="46" bgcolor="#cceeff"><div align="right"><font style="font-face: Times New Roman" size="2" color="#000000">(5,356</font></div></td> <td width="7" bgcolor="#cceeff"><div><font style="font-face: Times New Roman" size="2" color="#000000">) </font></div></td> </tr> </table> <div><font style="font-face: Times New Roman" size="1" color="#000000"> </font></div> <div><font style="font-face: Times New Roman" size="3" color="#000000"></font></div> <table border="0" cellspacing="0" cellpadding="0"> <tr> <td width="126"><div> </div></td> <td width="4"><div> </div></td> <td width="6"><div> </div></td> <td width="28"><div> </div></td> <td width="6"><div> </div></td> <td width="4"><div> </div></td> <td width="6"><div> </div></td> <td width="39"><div> </div></td> <td width="7"><div> </div></td> <td width="2"><div> </div></td> <td width="76"><div> </div></td> <td width="4"><div> </div></td> <td width="6"><div> </div></td> <td width="41"><div> </div></td> <td width="7"><div> </div></td> <td width="2"><div> </div></td> <td width="6"><div> </div></td> <td width="41"><div> </div></td> <td width="7"><div> </div></td> <td width="2"><div> </div></td> <td width="80"><div> </div></td> <td width="4"><div> </div></td> <td width="13"><div> </div></td> <td width="26"><div> </div></td> <td width="13"><div> </div></td> <td width="4"><div> </div></td> <td width="13"><div> </div></td> <td width="35"><div> </div></td> <td width="7"><div> </div></td> </tr> <tr> <td rowspan="2" width="126"><div><font style="font-face: Times New Roman" size="1" color="#000000"><b>Derivatives in ASC</b></font></div><div><font style="font-face: Times New Roman" size="1" color="#000000"><b>815 Fair Value Hedging</b></font></div><div><font style="font-face: Times New Roman" size="1" color="#000000"><b>Relationships</b></font></div></td> <td width="4"><div><font style="font-face: Times New Roman" size="1" color="#000000">  </font></div></td> <td colspan="6" width="92"><div align="center"><font style="font-face: Times New Roman" size="1" color="#000000"><b>Amount of Gain or  (Loss)</b></font></div><div align="center"><font style="font-face: Times New Roman" size="3" color="#000000"></font><font style="font-face: Times New Roman" size="1" color="#000000"><b>Recognized in OCI on</b></font></div><div align="center"><font style="font-face: Times New Roman" size="3" color="#000000"></font><font style="font-face: Times New Roman" size="1" color="#000000"><b>Derivative</b></font></div><div align="center"><font style="font-face: Times New Roman" size="3" color="#000000"></font><font style="font-face: Times New Roman" size="1" color="#000000"><b>(Effective Portion)</b></font></div></td> <td width="7"><div><font style="font-face: Times New Roman" size="1" color="#000000"> </font></div></td> <td width="2"><div><font style="font-face: Times New Roman" size="1" color="#000000"> </font></div></td> <td width="76"><div align="center"><font style="font-face: Times New Roman" size="1" color="#000000"><b>Location of</b></font></div><div align="center"><font style="font-face: Times New Roman" size="3" color="#000000"></font><font style="font-face: Times New Roman" size="1" color="#000000"><b>Gain or (Loss)</b></font></div><div align="center"><font style="font-face: Times New Roman" size="1" color="#000000"><b>Reclassified from</b></font></div><div align="center"><font style="font-face: Times New Roman" size="1" color="#000000"><b>Accumulated OCI</b></font></div><div align="center"><font style="font-face: Times New Roman" size="1" color="#000000"><b>into Income</b></font></div></td> <td width="4"><div><font style="font-face: Times New Roman" size="1" color="#000000">  </font></div></td> <td colspan="6" width="106"><div align="center"><font style="font-face: Times New Roman" size="1" color="#000000"><b>Amount of Gain or (Loss)</b></font></div><div align="center"><font style="font-face: Times New Roman" size="1" color="#000000"><b>Reclassified from</b></font></div><div align="center"><font style="font-face: Times New Roman" size="3" color="#000000"></font><font style="font-face: Times New Roman" size="1" color="#000000"><b>Accumulated</b></font></div><div align="center"><font style="font-face: Times New Roman" size="3" color="#000000"></font><font style="font-face: Times New Roman" size="1" color="#000000"><b>OCI into Income</b></font></div><div align="center"><font style="font-face: Times New Roman" size="3" color="#000000"></font><font style="font-face: Times New Roman" size="1" color="#000000"><b>(Effective Portion)</b></font></div></td> <td width="7"><div><font style="font-face: Times New Roman" size="1" color="#000000"> </font></div></td> <td width="2"><div><font style="font-face: Times New Roman" size="1" color="#000000"> </font></div></td> <td width="80"><div align="center"><font style="font-face: Times New Roman" size="1" color="#000000"><b>Location of</b></font></div><div align="center"><font style="font-face: Times New Roman" size="3" color="#000000"></font><font style="font-face: Times New Roman" size="1" color="#000000"><b>Gain or (Loss)</b></font></div><div align="center"><font style="font-face: Times New Roman" size="1" color="#000000"><b>Recognized in</b></font></div><div align="center"><font style="font-face: Times New Roman" size="1" color="#000000"><b>Income on</b></font></div><div align="center"><font style="font-face: Times New Roman" size="3" color="#000000"></font><font style="font-face: Times New Roman" size="1" color="#000000"><b>Derivative</b></font></div><div align="center"><font style="font-face: Times New Roman" size="1" color="#000000"><b>(Ineffective Portion</b></font></div><div align="center"><font style="font-face: Times New Roman" size="1" color="#000000"><b>and Amount</b></font></div><div align="center"><font style="font-face: Times New Roman" size="1" color="#000000"><b>Excluded from</b></font></div><div align="center"><font style="font-face: Times New Roman" size="3" color="#000000"></font><font style="font-face: Times New Roman" size="1" color="#000000"><b>Effectiveness</b></font></div></td> <td width="4"><div><font style="font-face: Times New Roman" size="1" color="#000000">  </font></div></td> <td colspan="6" width="106"><div align="center"><font style="font-face: Times New Roman" size="1" color="#000000"><b>Amount of Gain or  (Loss)</b></font></div><div align="center"><font style="font-face: Times New Roman" size="3" color="#000000"></font><font style="font-face: Times New Roman" size="1" color="#000000"><b>Recognized in Income on</b></font></div><div align="center"><font style="font-face: Times New Roman" size="1" color="#000000"><b>Derivative (Ineffective</b></font></div><div align="center"><font style="font-face: Times New Roman" size="1" color="#000000"><b>Portion and  Amount</b></font></div><div align="center"><font style="font-face: Times New Roman" size="3" color="#000000"></font><font style="font-face: Times New Roman" size="1" color="#000000"><b>Excluded from</b></font></div><div align="center"><font style="font-face: Times New Roman" size="1" color="#000000"><b>Effectiveness Testing)</b></font></div></td> <td width="7"><div><font style="font-face: Times New Roman" size="1" color="#000000"> </font></div></td> </tr> <tr> <td width="4"><div><font style="font-face: Times New Roman" size="1" color="#000000">  </font></div></td> <td colspan="2" width="35"><div align="center"><font style="font-face: Times New Roman" size="1" color="#000000"><b>2011</b></font></div></td> <td width="6"><div><font style="font-face: Times New Roman" size="1" color="#000000"> </font></div></td> <td width="4"><div><font style="font-face: Times New Roman" size="1" color="#000000">  </font></div></td> <td colspan="2" width="46"><div align="center"><font style="font-face: Times New Roman" size="1" color="#000000"><b>2010</b></font></div></td> <td width="7"><div><font style="font-face: Times New Roman" size="1" color="#000000"> </font></div></td> <td width="2"><div><font style="font-face: Times New Roman" size="1" color="#000000"> </font></div></td> <td width="76"><div align="center"><font style="font-face: Times New Roman" size="1" color="#000000"><b>(Effective Portion)</b></font></div></td> <td width="4"><div><font style="font-face: Times New Roman" size="1" color="#000000">  </font></div></td> <td colspan="2" width="48"><div align="center"><font style="font-face: Times New Roman" size="1" color="#000000"><b>2011</b></font></div></td> <td width="7"><div><font style="font-face: Times New Roman" size="1" color="#000000"> </font></div></td> <td width="2"><div><font style="font-face: Times New Roman" size="1" color="#000000"> </font></div></td> <td colspan="2" width="48"><div align="center"><font style="font-face: Times New Roman" size="1" color="#000000"><b>2010</b></font></div></td> <td width="7"><div><font style="font-face: Times New Roman" size="1" color="#000000"> </font></div></td> <td width="2"><div><font style="font-face: Times New Roman" size="1" color="#000000"> </font></div></td> <td width="80"><div align="center"><font style="font-face: Times New Roman" size="1" color="#000000"><b>Testing)</b></font></div></td> <td width="4"><div><font style="font-face: Times New Roman" size="1" color="#000000">  </font></div></td> <td colspan="2" width="39"><div align="center"><font style="font-face: Times New Roman" size="1" color="#000000"><b>2011</b></font></div></td> <td width="13"><div><font style="font-face: Times New Roman" size="1" color="#000000"> </font></div></td> <td width="4"><div><font style="font-face: Times New Roman" size="1" color="#000000">  </font></div></td> <td colspan="2" width="48"><div align="center"><font style="font-face: Times New Roman" size="1" color="#000000"><b>2010</b></font></div></td> <td width="7"><div><font style="font-face: Times New Roman" size="1" color="#000000"> </font></div></td> </tr> <tr> <td width="126" bgcolor="#cceeff"><div><font style="font-face: Times New Roman" size="2" color="#000000">Interest rate swaps</font></div></td> <td width="4" bgcolor="#cceeff"><div><font style="font-face: Times New Roman" size="1" color="#000000">  </font></div></td> <td width="6" bgcolor="#cceeff"><div><font style="font-face: Times New Roman" size="2" color="#000000">$</font></div></td> <td width="28" bgcolor="#cceeff"><div align="right"><font style="font-face: Times New Roman" size="2" color="#000000">1,568</font></div></td> <td width="6" bgcolor="#cceeff"><div><font style="font-face: Times New Roman" size="2" color="#000000">  </font></div></td> <td width="4" bgcolor="#cceeff"><div><font style="font-face: Times New Roman" size="1" color="#000000">  </font></div></td> <td width="6" bgcolor="#cceeff"><div><font style="font-face: Times New Roman" size="2" color="#000000">$</font></div></td> <td width="39" bgcolor="#cceeff"><div align="right"><font style="font-face: Times New Roman" size="2" color="#000000">(24,991</font></div></td> <td width="7" bgcolor="#cceeff"><div><font style="font-face: Times New Roman" size="2" color="#000000">) </font></div></td> <td width="2" bgcolor="#cceeff"><div><font style="font-face: Times New Roman" size="1" color="#000000"> </font></div></td> <td width="76" bgcolor="#cceeff"><div align="right"><font style="font-face: Times New Roman" size="2" color="#000000">Interest </font></div><div align="right"><font style="font-face: Times New Roman" size="2" color="#000000">income/</font></div><div align="right"><font style="font-face: Times New Roman" size="2" color="#000000">(expense)</font></div></td> <td width="4" bgcolor="#cceeff"><div><font style="font-face: Times New Roman" size="1" color="#000000">  </font></div></td> <td width="6" bgcolor="#cceeff"><div><font style="font-face: Times New Roman" size="2" color="#000000">$</font></div></td> <td width="41" bgcolor="#cceeff"><div align="right"><font style="font-face: Times New Roman" size="2" color="#000000">(15,359</font></div></td> <td width="7" bgcolor="#cceeff"><div><font style="font-face: Times New Roman" size="2" color="#000000">) </font></div></td> <td width="2" bgcolor="#cceeff"><div><font style="font-face: Times New Roman" size="1" color="#000000"> </font></div></td> <td width="6" bgcolor="#cceeff"><div><font style="font-face: Times New Roman" size="2" color="#000000">$</font></div></td> <td width="41" bgcolor="#cceeff"><div align="right"><font style="font-face: Times New Roman" size="2" color="#000000">(20,117</font></div></td> <td width="7" bgcolor="#cceeff"><div><font style="font-face: Times New Roman" size="2" color="#000000">) </font></div></td> <td width="2" bgcolor="#cceeff"><div><font style="font-face: Times New Roman" size="1" color="#000000"> </font></div></td> <td width="80" bgcolor="#cceeff"><div align="right"><font style="font-face: Times New Roman" size="2" color="#000000">Other income/</font></div><div align="right"><font style="font-face: Times New Roman" size="2" color="#000000">(expense)</font></div></td> <td width="4" bgcolor="#cceeff"><div><font style="font-face: Times New Roman" size="1" color="#000000">  </font></div></td> <td width="13" bgcolor="#cceeff"><div><font style="font-face: Times New Roman" size="2" color="#000000">$</font></div></td> <td width="26" bgcolor="#cceeff"><div align="right"><font style="font-face: Times New Roman" size="2" color="#000000">37</font></div></td> <td width="13" bgcolor="#cceeff"><div><font style="font-face: Times New Roman" size="2" color="#000000">  </font></div></td> <td width="4" bgcolor="#cceeff"><div><font style="font-face: Times New Roman" size="1" color="#000000">  </font></div></td> <td width="13" bgcolor="#cceeff"><div><font style="font-face: Times New Roman" size="2" color="#000000">$</font></div></td> <td width="35" bgcolor="#cceeff"><div align="right"><font style="font-face: Times New Roman" size="2" color="#000000">(17</font></div></td> <td width="7" bgcolor="#cceeff"><div><font style="font-face: Times New Roman" size="2" color="#000000">) </font></div></td> </tr> </table> <div><font style="font-face: Times New Roman" size="2" color="#000000">On June 23, 2005, the Company entered into and designated an interest rate swap based on a notional amount of $300,000 maturing June 2012 as a cash flow hedge. Under the swap agreement, the Company received interest equivalent to one month LIBOR and pays a fixed rate of 4.135%, with settlements occurring monthly. On February 20, 2006, the Company redesignated the same interest rate swap as a cash flow hedge for accounting purposes. At December 31, 2006, the swap no longer qualified as an effective hedge. Therefore, the balance in accumulated other comprehensive income has been reclassified into earnings over the life of the hedged item. On January 1, 2007, the Company redesignated the same interest rate swap as a cash flow hedge for accounting purposes. On August 18, 2008, the Company terminated the swap and entered into a settlement agreement with Goldman Sachs in the aggregate amount of $18,947, which also includes the termination of the swap having a notional value of $270,000. The balance in accumulated other comprehensive income is reclassified into earnings over the remaining life of the item previously hedged. During the three and six months ended June 26, 2011, $(558) and $(804) was amortized and recognized through earnings relating to the balances in accumulated other comprehensive income as of December 31, 2006 and August 18, 2008, respectively. The estimated amount, net of taxes, to be reclassified into earnings during the next twelve months is $(2,900). </font></div> <div><font style="font-face: Times New Roman" size="3" color="#000000"></font><font style="font-face: Times New Roman" size="2" color="#000000">In connection with financing obtained in 2006, the Company entered into and designated an interest rate swap based on a notional amount of $270,000 maturing July 2011 as a cash flow hedge. Under the swap agreement, the Company received interest equivalent to one month LIBOR and pays a fixed rate of 5.359%, with settlements occurring monthly. On January 1, 2007, the swap was redesignated. Therefore, the balance in accumulated other comprehensive income has been reclassified into earnings over the life of the hedged item. On August 18, 2008, the Company terminated the swap and entered into a settlement agreement with Goldman Sachs in the aggregate amount of $18,947 which also includes the termination of the swap having a notional value of $300,000. The balance in accumulated other comprehensive income is reclassified into earnings over the remaining life of the item previously hedged. During the three and six months ended June 26, 2011, $600 and $1,262 was amortized and recognized through earnings relating to the balance in accumulated other comprehensive income as of December 31, 2006 and August 18, 2008, respectively. As of June 26, 2011, all amounts in accumulated other comprehensive income have been reclassified into earnings. </font></div> <div><font style="font-face: Times New Roman" size="3" color="#000000"></font><font style="font-face: Times New Roman" size="2" color="#000000">In connection with the 2007 Credit Facility, the Company entered into and designated an interest rate swap based on a notional amount of $100,000 maturing September 2014, as a cash flow hedge. Under the swap agreement, the Company receives interest equivalent to one month LIBOR and pays a fixed rate of 5.14%, with settlements occurring monthly. During the three months ended June 26, 2011, the fair value of the swap decreased by $893, of which $0 was recognized through earnings and $893 was recognized through accumulated other comprehensive income. During the six months ended June 26, 2011, the fair value of the swap increased by $311, of which $0 was recognized through earnings and $311 was recognized through accumulated other comprehensive income. </font></div> <div><font style="font-face: Times New Roman" size="3" color="#000000"></font><font style="font-face: Times New Roman" size="2" color="#000000">In connection with the 2007 Credit Facility, the Company entered into and designated an interest rate swap based on a notional amount of $250,000 maturing September 2014, as a cash flow hedge. Under the swap agreement, the Company receives interest equivalent to one month LIBOR and pays a fixed rate of 4.971%, with settlements occurring monthly. During the three months ended June 26, 2011, the fair value of the swap decreased by $2,303, of which $12 was recognized through earnings $2,291 was recognized through accumulated other comprehensive income. During the six months ended June 26, 2011, the fair value of the swap increased by $609, of which a decrease of $13 was recognized through earnings and an increase of $622 was recognized through accumulated other comprehensive income. </font></div> <div><font style="font-face: Times New Roman" size="3" color="#000000"></font><font style="font-face: Times New Roman" size="2" color="#000000">In connection with the First Amendment to the 2007 Credit Facility, the Company entered into and designated an interest rate swap based on a notional amount of $200,000 maturing September 2014, as a cash flow hedge. Under the swap agreement, the Company receives interest equivalent to one month LIBOR and pays a fixed rate of 5.079% with settlements occurring monthly. During the three months ended June 26, 2011, the fair value of the swap decreased by $1,807, of which $5 was recognized through earnings and $1,802 was recognized through accumulated other comprehensive income. During the six months ended June 26, 2011, the fair value of the swap increased by $573, of which a decrease of $7 was recognized through earnings and an increase of $580 was recognized through accumulated other comprehensive income. </font></div> <div><font style="font-face: Times New Roman" size="3" color="#000000"></font><font style="font-face: Times New Roman" size="2" color="#000000">In connection with the First Amendment to the 2007 Credit Facility, the Company entered into and designated an interest rate swap based on a notional amount of $75,000 maturing September 2014, as a cash flow hedge. Under the swap agreement, the Company receives interest equivalent to one month LIBOR and pays a fixed rate of 4.941% with settlements occurring monthly. During the three months ended June 26, 2011, the fair value of the swap decreased by $761, of which an increase of $17 was recognized through earnings and a decrease of $778 was recognized through accumulated other comprehensive income. During the six months ended June 26, 2011, the fair value of the swap increased by $112, of which $57 was recognized through earnings and $55 was recognized through accumulated other comprehensive income. </font></div> <div><font style="font-face: Times New Roman" size="3" color="#000000"></font><font style="font-face: Times New Roman" size="2" color="#000000">The aggregate amount of unrealized loss related to derivative instruments recognized in other comprehensive loss as of June 26, 2011 and June 30, 2010 was $59,044 and $68,031, respectively. </font></div> <div><font style="font-face: Times New Roman" size="3" color="#000000"></font></div>

-415000

-22844000

195335000

176817000

102921000

95169000

<div><font style="font-face: Times New Roman" size="2" color="#000000"><b>(6) Indebtedness </b></font></div> <div><font style="font-face: Times New Roman" size="3" color="#000000"></font><font style="font-face: Times New Roman" size="2" color="#000000"><i><b>2007 Credit Facility </b></i></font></div> <div><font style="font-face: Times New Roman" size="3" color="#000000"></font><font style="font-face: Times New Roman" size="2" color="#000000">GateHouse Media Operating, Inc. (Operating), an indirect wholly-owned subsidiary of the Company, GateHouse Media Holdco, Inc. (Holdco), an indirect wholly-owned subsidiary of the Company, and certain of their subsidiaries (together, the Borrowers) entered into an Amended and Restated Credit Agreement, dated as of February 27, 2007, with a syndicate of financial institutions with Wells Fargo Bank, N.A., successor-by-merger to Wachovia Bank, National Association, (Wells Fargo Bank) as administrative agent (the 2007 Credit Facility). </font></div> <div><font style="font-face: Times New Roman" size="3" color="#000000"></font><font style="font-face: Times New Roman" size="2" color="#000000">The 2007 Credit Facility, prior to execution of the Second Amendment (defined below), provided for: (a) a $670,000 term loan facility that matures on August 28, 2014; (b) a delayed draw term loan facility of up to $250,000 that matures on August 28, 2014, and (c) a revolving credit facility with a $40,000 aggregate loan commitment amount available, including a $15,000 sub-facility for letters of credit and a $10,000 swingline facility, that matures on February 28, 2014. The Borrowers used the proceeds of the 2007 Credit Facility to refinance existing indebtedness and for working capital and other general corporate purposes, including, without limitation, financing acquisitions permitted under the 2007 Credit Facility. The 2007 Credit Facility is secured by a first priority security interest in: (a) all present and future capital stock or other membership, equity, ownership or profits interest of Operating and all of its direct and indirect domestic restricted subsidiaries; (b) 65% of the voting stock (and 100% of the nonvoting stock) of all present and future first-tier foreign subsidiaries; and (c) substantially all of the tangible and intangible assets of Holdco, Operating and their present and future direct and indirect domestic restricted subsidiaries. In addition, the loans and other obligations of the Borrowers under the 2007 Credit Facility are guaranteed, subject to specified limitations, by Holdco, Operating and their present and future direct and indirect domestic restricted subsidiaries. </font></div> <div><font style="font-face: Times New Roman" size="3" color="#000000"></font><font style="font-face: Times New Roman" size="2" color="#000000">Borrowings under the 2007 Credit Facility bear interest, at the borrower's option, equal to the LIBOR Rate for a LIBOR Rate Loan (as defined in the 2007 Credit Facility), or the Alternate Base Rate for an Alternate Base Rate Loan (as defined in the 2007 Credit Facility), plus an applicable margin. The applicable margin for the LIBOR Rate term loans and Alternate Base Rate term loans, as amended by the First Amendment (defined below), are 2.00% and 1.00%, respectively. The applicable margin for revolving loans is adjusted quarterly based upon Holdco's Total Leverage Ratio (as defined in the 2007 Credit Facility) (<i>i.e</i>., the ratio of Holdco's Consolidated Indebtedness (as defined in the 2007 Credit Facility) on the last day of the preceding quarter to Consolidated EBITDA (as defined in the 2007 Credit Facility) for the four fiscal quarters ending on the date of determination). The applicable margin ranges from 1.50% to 2.00%, in the case of LIBOR Rate Loans and, 0.50% to 1.00% in the case of Alternate Base Rate Loans. Under the revolving credit facility, GateHouse Media will also pay a quarterly commitment fee on the unused portion of the revolving credit facility ranging from 0.25% to 0.5% based on the same ratio of Consolidated Indebtedness to Consolidated EBITDA and a quarterly fee equal to the applicable margin for LIBOR Rate Loans on the aggregate amount of outstanding letters of credit. In addition, GateHouse Media will be required to pay a ticking fee at the rate of 0.50% of the aggregate unfunded amount available to be borrowed under the delayed draw term facility. </font></div> <div><font style="font-face: Times New Roman" size="3" color="#000000"></font><font style="font-face: Times New Roman" size="2" color="#000000">No principal payments are due on the term loan facilities or the revolving credit facility until the applicable maturity date. The Borrowers are required to prepay borrowings under the term loan facilities in an amount equal to 50.0% of Holdco's Excess Cash Flow (as defined in the 2007 Credit Facility) earned during the previous fiscal year, except that no prepayments are required if the Total Leverage Ratio (as defined in the 2007 Credit Facility) is less than or equal to 6.0 to 1.0 at the end of such fiscal year. In addition, the Borrowers are required to prepay borrowings under the term loan facilities with asset disposition proceeds in excess of specified amounts to the extent necessary to cause Holdco's Total Leverage Ratio to be less than or equal to 6.25 to 1.00, and with cash insurance proceeds and condemnation or expropriation awards, in excess of specified amounts, subject, in each case, to reinvestment rights. The Borrowers are required to prepay borrowings under the term loan facilities with the net proceeds of equity issuances by GateHouse Media in an amount equal to the lesser of (a) the amount by which 50.0% of the net cash proceeds exceeds the amount (if any) required to repay any credit facilities of GateHouse Media or (b) the amount of proceeds required to reduce Holdco's Total Leverage Ratio to 6.0 to 1.0. The Borrowers are also required to prepay borrowings under the term loan facilities with 100% of the proceeds of debt issuances (with specified exceptions), except that no prepayment is required if Holdco's Total Leverage Ratio is less than 6.0 to 1.0. If the term loan facilities have been paid in full, mandatory prepayments are applied to the repayment of borrowings under the swingline facility and revolving credit facilities and the cash collateralization of letters of credit. </font></div> <div><font style="font-face: Times New Roman" size="3" color="#000000"></font><font style="font-face: Times New Roman" size="2" color="#000000">The 2007 Credit Facility contains a financial covenant that requires Holdco to maintain a Total Leverage Ratio of less than or equal to 6.5 to 1.0 at any time an extension of credit is outstanding under the revolving credit facility. The 2007 Credit Facility contains affirmative and negative covenants applicable to Holdco, Operating and their restricted subsidiaries customarily found in loan agreements for similar transactions, including restrictions on their ability to incur indebtedness (which GateHouse Media is generally permitted to incur so long as it satisfies an incurrence test that requires it to maintain a pro forma Total Leverage Ratio of less than 6.5 to 1.0), create liens on assets, engage in certain lines of business, engage in mergers or consolidations, dispose of assets, make investments or acquisitions, engage in transactions with affiliates, enter into sale leaseback transactions, enter into negative pledges or pay dividends or make other restricted payments, except that Holdco is permitted to (a) make restricted payments (including quarterly dividends) so long as, after giving effect to any such restricted payment, Holdco and its subsidiaries have a Fixed Charge Coverage Ratio (as defined in the 2007 Credit Facility) equal to or greater than 1.0 to 1.0 and would be able to incur an additional $1.00 of debt under the incurrence test referred to above and (b) make restricted payments of proceeds of asset dispositions to GateHouse Media to the extent such proceeds are not required to prepay loans under the 2007 Credit Facility and/or cash collateralize letter of credit obligations and such proceeds are used to prepay borrowings under acquisition credit facilities of GateHouse Media. The 2007 Credit Facility also permits the borrowers, in certain limited circumstances, to designate subsidiaries as unrestricted subsidiaries which are not subject to the covenant restrictions in the 2007 Credit Facility. The 2007 Credit Facility contains customary events of default, including defaults based on a failure to pay principal, reimbursement obligations, interest, fees or other obligations, subject to specified grace periods; any material inaccuracy of a representation or warranty; breach of covenant; failure to pay other indebtedness and cross-accelerations; a Change of Control (as defined in the 2007 Credit Facility); events of bankruptcy and insolvency; material judgments; failure to meet certain requirements with respect to ERISA; and impairment of collateral. There were no extensions of credit outstanding under the revolving credit portion of the facility at June 26, 2011 and, therefore, the Company was not required to be in compliance with the Total Leverage Ratio covenant. </font></div> <div><font style="font-face: Times New Roman" size="3" color="#000000"></font><font style="font-face: Times New Roman" size="2" color="#000000"><i><b>First Amendment to 2007 Credit Facility </b></i></font></div> <div><font style="font-face: Times New Roman" size="3" color="#000000"></font><font style="font-face: Times New Roman" size="2" color="#000000">On May 7, 2007, the Borrowers entered into the First Amendment to amend the 2007 Credit Facility. The First Amendment provided an incremental term loan facility under the 2007 Credit Facility in the amount of $275,000. As amended by the First Amendment, the 2007 Credit Facility includes $1,195,000 of term loan facilities and $40,000 of a revolving credit facility. The incremental term loan facility amortizes at the same rate and matures on the same date as the existing term loan facilities under the 2007 Credit Facility. Interest on the incremental term loan facility accrues at a rate per annum equal to, at the option of the borrower, (a) adjusted LIBOR plus a margin equal to (i) 2.00%, if the corporate family ratings and corporate credit ratings of Operating by Moody's Investors Service Inc. and Standard & Poor's Rating Services, are at least B1, and B+, respectively, in each case with stable outlook or (ii) 2.25%, otherwise, as was the case as of June 26, 2011, or (b) the greater of the prime rate set by Wells Fargo Bank, or the federal funds effective rate plus 0.50%, plus a margin 1.00% lower than that applicable to adjusted LIBOR-based loans. Any voluntary or mandatory repayment of the First Amendment term loans made with the proceeds of a new term loan entered into for the primary purpose of benefiting from a margin that is less than the margin applicable as a result of the First Amendment will be subject to a 1.00% prepayment premium. The First Amendment term loans are subject to a most favored nation interest provision that grants the First Amendment term loans an interest rate margin that is 0.25% less than the highest margin of any future term loan borrowings under the 2007 Credit Facility. </font></div> <div><font style="font-face: Times New Roman" size="3" color="#000000"></font><font style="font-face: Times New Roman" size="2" color="#000000">As previously noted, the First Amendment also modified the interest rates applicable to the term loans under the 2007 Credit Facility. Term loans thereunder accrue interest at a rate per annum equal to, at the option of the Borrower, (a) adjusted LIBOR plus a margin equal to 2.00% or (b) the greater of the prime rate set by Wells Fargo Bank, or the federal funds effective rate plus 0.50%, plus a margin equal to 1.00%. The terms of the previously outstanding borrowings were also modified to include a 1.00% prepayment premium corresponding to the prepayment premium applicable to the First Amendment term loans and a corresponding most favored nation interest provision. </font></div> <div><font style="font-face: Times New Roman" size="3" color="#000000"></font><font style="font-face: Times New Roman" size="2" color="#000000"><i><b>Second Amendment to 2007 Credit Facility </b></i></font></div> <div><font style="font-face: Times New Roman" size="3" color="#000000"></font><font style="font-face: Times New Roman" size="2" color="#000000">On February 3, 2009, the Company entered into a Second Amendment to the 2007 Credit Facility (the Second Amendment). </font></div> <div><font style="font-face: Times New Roman" size="3" color="#000000"></font><font style="font-face: Times New Roman" size="2" color="#000000">The Second Amendment, among other things, permits the borrowers to repurchase term loans outstanding under the 2007 Credit Facility at prices below par through one or more Modified Dutch Auctions (as defined in the Second Amendment) through December 31, 2011, provided that: (a) no Default or Event of Default under the Credit Agreement has occurred and is continuing or would result from such repurchases, (b) the sum of Unrestricted Cash and Accessible Borrowing Availability (as defined in the Second Amendment) under the 2007 Credit Facility is greater than or equal to $20,000; and (c) no Extension of Credit (as defined in the Second Amendment) is outstanding under the revolving credit facility before or after giving effect to such repurchases. The Second Amendment further provides that such repurchases may result in the prepayment of term loans on a non-pro rata basis. No debt repurchases are required to be made pursuant to the Second Amendment and the Company cannot provide any assurances that any such debt repurchases will be made or, if made, the prices at which such repurchases will be made. </font></div> <div><font style="font-face: Times New Roman" size="3" color="#000000"></font><font style="font-face: Times New Roman" size="2" color="#000000">The Second Amendment also reduced the aggregate principal amounts available under the 2007 Credit Facility, as follows: (a) for revolving loans, from $40,000 to $20,000; (b) for the letter of credit subfacility, from $15,000 to $5,000; and (c) for the swingline loan subfacility, from $10,000 to $5,000. </font></div> <div><font style="font-face: Times New Roman" size="3" color="#000000"></font><font style="font-face: Times New Roman" size="2" color="#000000">In addition, the Second Amendment provides that Holdco may not incur additional term debt under the 2007 Credit Facility unless the Senior Secured Incurrence Test (as defined in the Second Amendment) is less than 4.00 to 1 and the current Incurrence Test (as defined in the Second Amendment) is satisfied. </font></div> <div><font style="font-face: Times New Roman" size="3" color="#000000"></font><font style="font-face: Times New Roman" size="2" color="#000000">In conjunction with the Second Amendment, the Company incurred and expensed approximately $550 of fees. The existing unamortized deferred financing fees that should be written off, in accordance with FASB ASC Topic 855, <i>Debt</i>, as a result of the decrease in borrowing capacity were not significant. The Company determined that the approximate net impact of $400 was immaterial and as a result the Company expensed $550 of new fees and continued to amortize the existing deferred financing fees. </font></div> <div><font style="font-face: Times New Roman" size="3" color="#000000"></font><font style="font-face: Times New Roman" size="2" color="#000000"><i><b>Agency Amendment to 2007 Credit Facility </b></i></font></div> <div><font style="font-face: Times New Roman" size="3" color="#000000"></font><font style="font-face: Times New Roman" size="2" color="#000000">On April 1, 2011, the Borrowers entered into an Agency Succession and Amendment Agreement, dated as of March 30, 2011, to the 2007 Credit Facility (the Agency Amendment). </font></div> <div><font style="font-face: Times New Roman" size="3" color="#000000"></font><font style="font-face: Times New Roman" size="2" color="#000000">Pursuant to the Agency Amendment, among other things, (a) Wells Fargo Bank resigned as administrative agent and (b) Gleacher Products Corp. was appointed as administrative agent. In addition, the Agency Amendment effected certain amendments to the 2007 Credit Facility that provide that (x) the administrative agent need not be a lender under the 2007 Credit Facility and (y) the lenders holding a majority of the outstanding term loans and loan commitments under the 2007 Credit Facility have (i) the right, in their discretion, to remove the administrative agent and (ii) the right to make certain decisions and exercise certain powers under the 2007 Credit Facility that had previously been within the discretion of the administrative agent. </font></div> <div><font style="font-face: Times New Roman" size="3" color="#000000"></font><font style="font-face: Times New Roman" size="2" color="#000000">As required by the 2007 Credit Facility, as amended, on March 2, 2011 and March 5, 2010, the Company made principal payments of $11,249 and $2,513, respectively, which represented 50% of the Excess Cash Flow related to the fiscal years ended December 31, 2010 and 2009, respectively. As of June 26, 2011, a total of $1,181,238 was outstanding under the 2007 Credit Facility; $662,284 was outstanding under the term loan facility, $247,121 was outstanding under the delayed draw term loan facility, $271,833 was outstanding under the incremental term loan facility and no amounts were outstanding under the revolving credit facility. </font></div> <div><font style="font-face: Times New Roman" size="3" color="#000000"></font><font style="font-face: Times New Roman" size="2" color="#000000"><i><b>Compliance with Covenants </b></i></font></div> <div><font style="font-face: Times New Roman" size="3" color="#000000"></font><font style="font-face: Times New Roman" size="2" color="#000000">The Company currently is in compliance with all of the covenants and obligations under the 2007 Credit Facility, as amended. However, due to restrictive covenants and conditions within the facility, the Company currently does not have the ability to draw upon the revolving credit facility portion of the 2007 Credit Facility for any immediate short-term funding needs or to incur additional long-term debt and does not expect to be able to do so in the foreseeable future. </font></div> <div><font style="font-face: Times New Roman" size="3" color="#000000"></font><font style="font-face: Times New Roman" size="2" color="#000000"><i><b>2008 Bridge Facility </b></i></font></div> <div><font style="font-face: Times New Roman" size="3" color="#000000"></font><font style="font-face: Times New Roman" size="2" color="#000000">On February 15, 2008, GateHouse Media Intermediate Holdco, Inc., a subsidiary of the Company, and the Company entered into the 2008 Bridge Facility with Barclays Capital (Barclays), as subsequently modified and amended. The 2008 Bridge Facility originally provided for a $20,600 secured term loan facility. On June 7, 2010, the Company paid off in full the remaining balance under the 2008 Bridge Facility. </font></div> <div><font style="font-face: Times New Roman" size="3" color="#000000"></font><font style="font-face: Times New Roman" size="2" color="#000000"><i><b>Preferred Stock Agreement with Subsidiary </b></i></font></div> <div><font style="font-face: Times New Roman" size="3" color="#000000"></font><font style="font-face: Times New Roman" size="2" color="#000000">On August 21, 2008, FIF III Liberty Holdings LLC (FIF III) purchased an aggregate of $11,500 in 10% cumulative preferred stock of GateHouse Media Macomb Holdings, Inc. (Macomb), an operating subsidiary of the Company. Macomb, an Unrestricted Subsidiary under the terms of the 2007 Credit Facility, used the proceeds from such sale of preferred stock to make an $11,500 cash investment in Holdco non-voting 10% cumulative preferred stock. On December 7, 2010, FIF III exercised its right to require the Company to purchase its Macomb preferred stock. During the five-year period following the full repayment by the Company of its 2008 Bridge Facility, which repayment occurred in the second quarter of 2010, FIF III had the right to require the Company to purchase the preferred stock. The Company paid the purchase price of $14,144 on December 8, 2010, which represented the sum of original purchase price of $11,500 paid by FIF III for the Macomb preferred stock and accrued but unpaid dividends of $2,644. FIF III is an affiliate of Fortress Investment Group, LLC, the owner of approximately 39.6% of the Company's outstanding Common Stock. </font></div> <div><font style="font-face: Times New Roman" size="3" color="#000000"></font><font style="font-face: Times New Roman" size="2" color="#000000"><i><b>Fair Value </b></i></font></div> <div><font style="font-face: Times New Roman" size="3" color="#000000"></font><font style="font-face: Times New Roman" size="2" color="#000000">The fair value of the Company's total long-term debt, determined based on estimated market prices for similar issues of debt with consistent remaining maturities and terms, total approximately $748,000. </font></div> <div><font style="font-face: Times New Roman" size="3" color="#000000"></font><font style="font-face: Times New Roman" size="2" color="#000000"><i><b>Payment Schedule </b></i></font></div> <div><font style="font-face: Times New Roman" size="3" color="#000000"></font><font style="font-face: Times New Roman" size="2" color="#000000">As of June 26, 2011, scheduled principal payments of outstanding debt are as follows: </font></div> <div><font style="font-face: Times New Roman" size="3" color="#000000"></font><font style="font-face: Times New Roman" size="2" color="#000000"> </font></div> <div><font style="font-face: Times New Roman" size="2" color="#000000"></font></div> <table border="0" cellspacing="0" cellpadding="0"> <tr> <td colspan="5" width="816"><div> </div></td> <td width="23"><div> </div></td> <td width="9"><div> </div></td> <td width="55"><div> </div></td> <td width="9"><div> </div></td> </tr> <tr> <td colspan="5" width="816"><div><font style="font-face: Times New Roman" size="2" color="#000000">2011</font></div></td> <td width="23"><div><font style="font-face: Times New Roman" size="1" color="#000000">  </font></div></td> <td width="9"><div><font style="font-face: Times New Roman" size="2" color="#000000"> </font></div></td> <td width="55"><div align="right"><font style="font-face: Times New Roman" size="2" color="#000000">  </font></div></td> <td width="9"><div><font style="font-face: Times New Roman" size="2" color="#000000"> </font></div></td> </tr> <tr> <td colspan="5" width="816"><div><font style="font-face: Times New Roman" size="2" color="#000000">2012</font></div></td> <td width="23"><div><font style="font-face: Times New Roman" size="1" color="#000000">  </font></div></td> <td width="9"><div><font style="font-face: Times New Roman" size="2" color="#000000"> </font></div></td> <td width="55"><div align="right"><font style="font-face: Times New Roman" size="2" color="#000000">  </font></div></td> <td width="9"><div><font style="font-face: Times New Roman" size="2" color="#000000">  </font></div></td> </tr> <tr> <td colspan="5" width="816"><div><font style="font-face: Times New Roman" size="2" color="#000000">2013</font></div></td> <td width="23"><div><font style="font-face: Times New Roman" size="1" color="#000000">  </font></div></td> <td width="9"><div><font style="font-face: Times New Roman" size="2" color="#000000"> </font></div></td> <td width="55"><div align="right"><font style="font-face: Times New Roman" size="2" color="#000000">  </font></div></td> <td width="9"><div><font style="font-face: Times New Roman" size="2" color="#000000">  </font></div></td> </tr> <tr> <td colspan="5" width="816"><div><font style="font-face: Times New Roman" size="2" color="#000000">2014</font></div></td> <td width="23"><div><font style="font-face: Times New Roman" size="1" color="#000000">  </font></div></td> <td width="9"><div><font style="font-face: Times New Roman" size="2" color="#000000"> </font></div></td> <td width="55"><div align="right"><font style="font-face: Times New Roman" size="2" color="#000000">1,181,238</font></div></td> <td width="9"><div><font style="font-face: Times New Roman" size="2" color="#000000">  </font></div></td> </tr> <tr> <td colspan="5" width="816"><div> </div></td> <td width="23"><div><font style="font-face: Times New Roman" size="1" color="#000000">  </font></div></td> <td width="9"><div><font style="font-face: Times New Roman" size="1" color="#000000"> </font></div></td> <td width="55"><div><font style="font-face: Times New Roman" size="1" color="#000000"> </font></div></td> <td width="9"><div><font style="font-face: Times New Roman" size="1" color="#000000"> </font></div></td> </tr> <tr> <td colspan="5" width="816"><div> </div></td> <td width="23"><div><font style="font-face: Times New Roman" size="1" color="#000000">  </font></div></td> <td width="9"><div><font style="font-face: Times New Roman" size="2" color="#000000">$</font></div></td> <td width="55"><div align="right"><font style="font-face: Times New Roman" size="2" color="#000000">1,181,238</font></div></td> <td width="9"><div><font style="font-face: Times New Roman" size="2" color="#000000">  </font></div></td> </tr> <tr> <td colspan="5" width="816"><div> </div></td> <td width="23"><div><font style="font-face: Times New Roman" size="1" color="#000000">  </font></div></td> <td width="9"><div><font style="font-face: Times New Roman" size="1" color="#000000"> </font></div></td> <td width="55"><div><font style="font-face: Times New Roman" size="1" color="#000000"> </font></div></td> <td width="9"><div><font style="font-face: Times New Roman" size="1" color="#000000"> </font></div></td> </tr> <tr> <td width="364"><div> </div></td> <td width="188"><div><font style="font-face: Times New Roman" size="1" color="#000000">  </font></div></td> <td width="92"><div><font style="font-face: Times New Roman" size="1" color="#000000"> </font></div></td> <td width="91"><div><font style="font-face: Times New Roman" size="1" color="#000000"> </font></div></td> <td colspan="5" width="177"><div><font style="font-face: Times New Roman" size="1" color="#000000"> </font></div></td> </tr> <tr> <td width="364"><div> </div></td> <td width="188"><div> </div></td> <td width="92"><div> </div></td> <td width="91"><div> </div></td> <td width="79"><div> </div></td> <td width="23"><div> </div></td> <td width="9"><div> </div></td> <td width="55"><div> </div></td> <td width="9"><div> </div></td> </tr> <tr> <td width="364"></td> <td width="188"></td> <td width="92"></td> <td width="91"></td> <td width="79"></td> <td width="23"></td> <td width="9"></td> <td width="55"></td> <td width="9"></td> </tr> </table> <div> </div> <div><font style="font-face: Times New Roman" size="3" color="#000000"></font></div>

<div><font style="font-face: Times New Roman" size="2" color="#000000"><b>(5) Goodwill and Intangible Assets </b></font></div> <div><font style="font-face: Times New Roman" size="3" color="#000000"></font><font style="font-face: Times New Roman" size="2" color="#000000">Goodwill and intangible assets consisted of the following: </font></div> <div><font style="font-face: Times New Roman" size="3" color="#000000"></font><font style="font-face: Times New Roman" size="2" color="#000000"> </font></div> <div><font style="font-face: Times New Roman" size="2" color="#000000"></font></div> <table border="0" cellspacing="0" cellpadding="0"> <tr> <td width="207"><div> </div></td> <td width="25"><div> </div></td> <td width="8"><div> </div></td> <td width="56"><div> </div></td> <td width="6"><div> </div></td> <td width="25"><div> </div></td> <td width="7"><div> </div></td> <td width="49"><div> </div></td> <td width="6"><div> </div></td> <td width="25"><div> </div></td> <td width="7"><div> </div></td> <td width="47"><div> </div></td> <td width="6"><div> </div></td> </tr> <tr> <td width="207"><div><font style="font-face: Times New Roman" size="1" color="#000000"> </font></div></td> <td width="25"><div><font style="font-face: Times New Roman" size="1" color="#000000">  </font></div></td> <td colspan="10" width="240"><div align="center"><font style="font-face: Times New Roman" size="1" color="#000000"><b>June 26, 2011</b></font></div></td> <td width="6"><div><font style="font-face: Times New Roman" size="1" color="#000000"> </font></div></td> </tr> <tr> <td width="207"><div><font style="font-face: Times New Roman" size="1" color="#000000"> </font></div></td> <td width="25"><div><font style="font-face: Times New Roman" size="1" color="#000000">  </font></div></td> <td colspan="2" width="64"><div align="center"><font style="font-face: Times New Roman" size="1" color="#000000"><b>Gross carrying</b></font></div><div align="center"><font style="font-face: Times New Roman" size="1" color="#000000"><b>amount</b></font></div></td> <td width="6"><div><font style="font-face: Times New Roman" size="1" color="#000000"> </font></div></td> <td width="25"><div><font style="font-face: Times New Roman" size="1" color="#000000">  </font></div></td> <td colspan="2" width="57"><div align="center"><font style="font-face: Times New Roman" size="1" color="#000000"><b>Accumulated</b></font></div><div align="center"><font style="font-face: Times New Roman" size="1" color="#000000"><b>amortization</b></font></div></td> <td width="6"><div><font style="font-face: Times New Roman" size="1" color="#000000"> </font></div></td> <td width="25"><div><font style="font-face: Times New Roman" size="1" color="#000000">  </font></div></td> <td colspan="2" width="54"><div align="center"><font style="font-face: Times New Roman" size="1" color="#000000"><b>Net carrying</b></font></div><div align="center"><font style="font-face: Times New Roman" size="1" color="#000000"><b>amount</b></font></div></td> <td width="6"><div><font style="font-face: Times New Roman" size="1" color="#000000"> </font></div></td> </tr> <tr> <td width="207" bgcolor="#cceeff"><div><font style="font-face: Times New Roman" size="2" color="#000000">Amortized intangible assets:</font></div></td> <td width="25" bgcolor="#cceeff"><div><font style="font-face: Times New Roman" size="1" color="#000000">  </font></div></td> <td width="8" bgcolor="#cceeff"><div> </div></td> <td width="56" bgcolor="#cceeff"><div> </div></td> <td width="6" bgcolor="#cceeff"><div> </div></td> <td width="25" bgcolor="#cceeff"><div><font style="font-face: Times New Roman" size="1" color="#000000">  </font></div></td> <td width="7" bgcolor="#cceeff"><div> </div></td> <td width="49" bgcolor="#cceeff"><div> </div></td> <td width="6" bgcolor="#cceeff"><div> </div></td> <td width="25" bgcolor="#cceeff"><div><font style="font-face: Times New Roman" size="1" color="#000000">  </font></div></td> <td width="7" bgcolor="#cceeff"><div> </div></td> <td width="47" bgcolor="#cceeff"><div> </div></td> <td width="6" bgcolor="#cceeff"><div> </div></td> </tr> <tr> <td width="207"><div><font style="font-face: Times New Roman" size="2" color="#000000">Noncompete agreements</font></div></td> <td width="25"><div><font style="font-face: Times New Roman" size="1" color="#000000">  </font></div></td> <td width="8"><div><font style="font-face: Times New Roman" size="2" color="#000000">$</font></div></td> <td width="56"><div align="right"><font style="font-face: Times New Roman" size="2" color="#000000">4,970</font></div></td> <td width="6"><div><font style="font-face: Times New Roman" size="2" color="#000000">  </font></div></td> <td width="25"><div><font style="font-face: Times New Roman" size="1" color="#000000">  </font></div></td> <td width="7"><div><font style="font-face: Times New Roman" size="2" color="#000000">$</font></div></td> <td width="49"><div align="right"><font style="font-face: Times New Roman" size="2" color="#000000">4,183</font></div></td> <td width="6"><div><font style="font-face: Times New Roman" size="2" color="#000000">  </font></div></td> <td width="25"><div><font style="font-face: Times New Roman" size="1" color="#000000">  </font></div></td> <td width="7"><div><font style="font-face: Times New Roman" size="2" color="#000000">$</font></div></td> <td width="47"><div align="right"><font style="font-face: Times New Roman" size="2" color="#000000">787</font></div></td> <td width="6"><div><font style="font-face: Times New Roman" size="2" color="#000000">  </font></div></td> </tr> <tr> <td width="207" bgcolor="#cceeff"><div><font style="font-face: Times New Roman" size="2" color="#000000">Advertiser relationships</font></div></td> <td width="25" bgcolor="#cceeff"><div><font style="font-face: Times New Roman" size="1" color="#000000">  </font></div></td> <td width="8" bgcolor="#cceeff"><div><font style="font-face: Times New Roman" size="2" color="#000000"> </font></div></td> <td width="56" bgcolor="#cceeff"><div align="right"><font style="font-face: Times New Roman" size="2" color="#000000">286,479</font></div></td> <td width="6" bgcolor="#cceeff"><div><font style="font-face: Times New Roman" size="2" color="#000000">  </font></div></td> <td width="25" bgcolor="#cceeff"><div><font style="font-face: Times New Roman" size="1" color="#000000">  </font></div></td> <td width="7" bgcolor="#cceeff"><div><font style="font-face: Times New Roman" size="2" color="#000000"> </font></div></td> <td width="49" bgcolor="#cceeff"><div align="right"><font style="font-face: Times New Roman" size="2" color="#000000">125,423</font></div></td> <td width="6" bgcolor="#cceeff"><div><font style="font-face: Times New Roman" size="2" color="#000000">  </font></div></td> <td width="25" bgcolor="#cceeff"><div><font style="font-face: Times New Roman" size="1" color="#000000">  </font></div></td> <td width="7" bgcolor="#cceeff"><div><font style="font-face: Times New Roman" size="2" color="#000000"> </font></div></td> <td width="47" bgcolor="#cceeff"><div align="right"><font style="font-face: Times New Roman" size="2" color="#000000">161,056</font></div></td> <td width="6" bgcolor="#cceeff"><div><font style="font-face: Times New Roman" size="2" color="#000000">  </font></div></td> </tr> <tr> <td width="207"><div><font style="font-face: Times New Roman" size="2" color="#000000">Customer relationships</font></div></td> <td width="25"><div><font style="font-face: Times New Roman" size="1" color="#000000">  </font></div></td> <td width="8"><div><font style="font-face: Times New Roman" size="2" color="#000000"> </font></div></td> <td width="56"><div align="right"><font style="font-face: Times New Roman" size="2" color="#000000">8,940</font></div></td> <td width="6"><div><font style="font-face: Times New Roman" size="2" color="#000000">  </font></div></td> <td width="25"><div><font style="font-face: Times New Roman" size="1" color="#000000">  </font></div></td> <td width="7"><div><font style="font-face: Times New Roman" size="2" color="#000000"> </font></div></td> <td width="49"><div align="right"><font style="font-face: Times New Roman" size="2" color="#000000">2,621</font></div></td> <td width="6"><div><font style="font-face: Times New Roman" size="2" color="#000000">  </font></div></td> <td width="25"><div><font style="font-face: Times New Roman" size="1" color="#000000">  </font></div></td> <td width="7"><div><font style="font-face: Times New Roman" size="2" color="#000000"> </font></div></td> <td width="47"><div align="right"><font style="font-face: Times New Roman" size="2" color="#000000">6,319</font></div></td> <td width="6"><div><font style="font-face: Times New Roman" size="2" color="#000000">  </font></div></td> </tr> <tr> <td width="207" bgcolor="#cceeff"><div><font style="font-face: Times New Roman" size="2" color="#000000">Subscriber relationships</font></div></td> <td width="25" bgcolor="#cceeff"><div><font style="font-face: Times New Roman" size="1" color="#000000">  </font></div></td> <td width="8" bgcolor="#cceeff"><div><font style="font-face: Times New Roman" size="2" color="#000000"> </font></div></td> <td width="56" bgcolor="#cceeff"><div align="right"><font style="font-face: Times New Roman" size="2" color="#000000">83,158</font></div></td> <td width="6" bgcolor="#cceeff"><div><font style="font-face: Times New Roman" size="2" color="#000000">  </font></div></td> <td width="25" bgcolor="#cceeff"><div><font style="font-face: Times New Roman" size="1" color="#000000">  </font></div></td> <td width="7" bgcolor="#cceeff"><div><font style="font-face: Times New Roman" size="2" color="#000000"> </font></div></td> <td width="49" bgcolor="#cceeff"><div align="right"><font style="font-face: Times New Roman" size="2" color="#000000">32,448</font></div></td> <td width="6" bgcolor="#cceeff"><div><font style="font-face: Times New Roman" size="2" color="#000000">  </font></div></td> <td width="25" bgcolor="#cceeff"><div><font style="font-face: Times New Roman" size="1" color="#000000">  </font></div></td> <td width="7" bgcolor="#cceeff"><div><font style="font-face: Times New Roman" size="2" color="#000000"> </font></div></td> <td width="47" bgcolor="#cceeff"><div align="right"><font style="font-face: Times New Roman" size="2" color="#000000">50,710</font></div></td> <td width="6" bgcolor="#cceeff"><div><font style="font-face: Times New Roman" size="2" color="#000000">  </font></div></td> </tr> <tr> <td width="207"><div><font style="font-face: Times New Roman" size="2" color="#000000">Trade name</font></div></td> <td width="25"><div><font style="font-face: Times New Roman" size="1" color="#000000">  </font></div></td> <td width="8"><div><font style="font-face: Times New Roman" size="2" color="#000000"> </font></div></td> <td width="56"><div align="right"><font style="font-face: Times New Roman" size="2" color="#000000">5,493</font></div></td> <td width="6"><div><font style="font-face: Times New Roman" size="2" color="#000000">  </font></div></td> <td width="25"><div><font style="font-face: Times New Roman" size="1" color="#000000">  </font></div></td> <td width="7"><div><font style="font-face: Times New Roman" size="2" color="#000000"> </font></div></td> <td width="49"><div align="right"><font style="font-face: Times New Roman" size="2" color="#000000">2,380</font></div></td> <td width="6"><div><font style="font-face: Times New Roman" size="2" color="#000000">  </font></div></td> <td width="25"><div><font style="font-face: Times New Roman" size="1" color="#000000">  </font></div></td> <td width="7"><div><font style="font-face: Times New Roman" size="2" color="#000000"> </font></div></td> <td width="47"><div align="right"><font style="font-face: Times New Roman" size="2" color="#000000">3,113</font></div></td> <td width="6"><div><font style="font-face: Times New Roman" size="2" color="#000000">  </font></div></td> </tr> <tr> <td width="207" bgcolor="#cceeff"><div><font style="font-face: Times New Roman" size="2" color="#000000">Publication rights</font></div></td> <td width="25" bgcolor="#cceeff"><div><font style="font-face: Times New Roman" size="1" color="#000000">  </font></div></td> <td width="8" bgcolor="#cceeff"><div><font style="font-face: Times New Roman" size="2" color="#000000"> </font></div></td> <td width="56" bgcolor="#cceeff"><div align="right"><font style="font-face: Times New Roman" size="2" color="#000000">345</font></div></td> <td width="6" bgcolor="#cceeff"><div><font style="font-face: Times New Roman" size="2" color="#000000">  </font></div></td> <td width="25" bgcolor="#cceeff"><div><font style="font-face: Times New Roman" size="1" color="#000000">  </font></div></td> <td width="7" bgcolor="#cceeff"><div><font style="font-face: Times New Roman" size="2" color="#000000"> </font></div></td> <td width="49" bgcolor="#cceeff"><div align="right"><font style="font-face: Times New Roman" size="2" color="#000000">100</font></div></td> <td width="6" bgcolor="#cceeff"><div><font style="font-face: Times New Roman" size="2" color="#000000">  </font></div></td> <td width="25" bgcolor="#cceeff"><div><font style="font-face: Times New Roman" size="1" color="#000000">  </font></div></td> <td width="7" bgcolor="#cceeff"><div><font style="font-face: Times New Roman" size="2" color="#000000"> </font></div></td> <td width="47" bgcolor="#cceeff"><div align="right"><font style="font-face: Times New Roman" size="2" color="#000000">245</font></div></td> <td width="6" bgcolor="#cceeff"><div><font style="font-face: Times New Roman" size="2" color="#000000">  </font></div></td> </tr> <tr> <td width="207"><div> </div></td> <td width="25"><div><font style="font-face: Times New Roman" size="1" color="#000000">  </font></div></td> <td width="8"><div><font style="font-face: Times New Roman" size="1" color="#000000"> </font></div></td> <td width="56"><div><font style="font-face: Times New Roman" size="1" color="#000000"> </font></div></td> <td width="6"><div><font style="font-face: Times New Roman" size="1" color="#000000"> </font></div></td> <td width="25"><div><font style="font-face: Times New Roman" size="1" color="#000000">  </font></div></td> <td width="7"><div><font style="font-face: Times New Roman" size="1" color="#000000"> </font></div></td> <td width="49"><div><font style="font-face: Times New Roman" size="1" color="#000000"> </font></div></td> <td width="6"><div><font style="font-face: Times New Roman" size="1" color="#000000"> </font></div></td> <td width="25"><div><font style="font-face: Times New Roman" size="1" color="#000000">  </font></div></td> <td width="7"><div><font style="font-face: Times New Roman" size="1" color="#000000"> </font></div></td> <td width="47"><div><font style="font-face: Times New Roman" size="1" color="#000000"> </font></div></td> <td width="6"><div><font style="font-face: Times New Roman" size="1" color="#000000"> </font></div></td> </tr> <tr> <td width="207"><div><font style="font-face: Times New Roman" size="2" color="#000000">Total</font></div></td> <td width="25"><div><font style="font-face: Times New Roman" size="1" color="#000000">  </font></div></td> <td width="8"><div><font style="font-face: Times New Roman" size="2" color="#000000">$</font></div></td> <td width="56"><div align="right"><font style="font-face: Times New Roman" size="2" color="#000000">389,385</font></div></td> <td width="6"><div><font style="font-face: Times New Roman" size="2" color="#000000">  </font></div></td> <td width="25"><div><font style="font-face: Times New Roman" size="1" color="#000000">  </font></div></td> <td width="7"><div><font style="font-face: Times New Roman" size="2" color="#000000">$</font></div></td> <td width="49"><div align="right"><font style="font-face: Times New Roman" size="2" color="#000000">167,155</font></div></td> <td width="6"><div><font style="font-face: Times New Roman" size="2" color="#000000">  </font></div></td> <td width="25"><div><font style="font-face: Times New Roman" size="1" color="#000000">  </font></div></td> <td width="7"><div><font style="font-face: Times New Roman" size="2" color="#000000">$</font></div></td> <td width="47"><div align="right"><font style="font-face: Times New Roman" size="2" color="#000000">222,230</font></div></td> <td width="6"><div><font style="font-face: Times New Roman" size="2" color="#000000">  </font></div></td> </tr> <tr> <td width="207"><div> </div></td> <td width="25"><div><font style="font-face: Times New Roman" size="1" color="#000000">  </font></div></td> <td width="8"><div><font style="font-face: Times New Roman" size="1" color="#000000"> </font></div></td> <td width="56"><div><font style="font-face: Times New Roman" size="1" color="#000000"> </font></div></td> <td width="6"><div><font style="font-face: Times New Roman" size="1" color="#000000"> </font></div></td> <td width="25"><div><font style="font-face: Times New Roman" size="1" color="#000000">  </font></div></td> <td width="7"><div><font style="font-face: Times New Roman" size="1" color="#000000"> </font></div></td> <td width="49"><div><font style="font-face: Times New Roman" size="1" color="#000000"> </font></div></td> <td width="6"><div><font style="font-face: Times New Roman" size="1" color="#000000"> </font></div></td> <td width="25"><div><font style="font-face: Times New Roman" size="1" color="#000000">  </font></div></td> <td width="7"><div><font style="font-face: Times New Roman" size="1" color="#000000"> </font></div></td> <td width="47"><div><font style="font-face: Times New Roman" size="1" color="#000000"> </font></div></td> <td width="6"><div><font style="font-face: Times New Roman" size="1" color="#000000"> </font></div></td> </tr> <tr> <td width="207" bgcolor="#cceeff"><div><font style="font-face: Times New Roman" size="2" color="#000000">Nonamortized intangible assets:</font></div></td> <td width="25" bgcolor="#cceeff"><div><font style="font-face: Times New Roman" size="1" color="#000000">  </font></div></td> <td width="8" bgcolor="#cceeff"><div> </div></td> <td width="56" bgcolor="#cceeff"><div> </div></td> <td width="6" bgcolor="#cceeff"><div> </div></td> <td width="25" bgcolor="#cceeff"><div><font style="font-face: Times New Roman" size="1" color="#000000">  </font></div></td> <td width="7" bgcolor="#cceeff"><div> </div></td> <td width="49" bgcolor="#cceeff"><div> </div></td> <td width="6" bgcolor="#cceeff"><div> </div></td> <td width="25" bgcolor="#cceeff"><div><font style="font-face: Times New Roman" size="1" color="#000000">  </font></div></td> <td width="7" bgcolor="#cceeff"><div> </div></td> <td width="47" bgcolor="#cceeff"><div> </div></td> <td width="6" bgcolor="#cceeff"><div> </div></td> </tr> <tr> <td width="207"><div><font style="font-face: Times New Roman" size="2" color="#000000">Goodwill</font></div></td> <td width="25"><div><font style="font-face: Times New Roman" size="1" color="#000000">  </font></div></td> <td width="8"><div><font style="font-face: Times New Roman" size="2" color="#000000">$</font></div></td> <td width="56"><div align="right"><font style="font-face: Times New Roman" size="2" color="#000000">14,343</font></div></td> <td width="6"><div><font style="font-face: Times New Roman" size="2" color="#000000">  </font></div></td> <td width="25"><div><font style="font-face: Times New Roman" size="1" color="#000000">  </font></div></td> <td width="7"><div> </div></td> <td width="49"><div> </div></td> <td width="6"><div> </div></td> <td width="25"><div><font style="font-face: Times New Roman" size="1" color="#000000">  </font></div></td> <td width="7"><div> </div></td> <td width="47"><div> </div></td> <td width="6"><div> </div></td> </tr> <tr> <td width="207" bgcolor="#cceeff"><div><font style="font-face: Times New Roman" size="2" color="#000000">Mastheads</font></div></td> <td width="25" bgcolor="#cceeff"><div><font style="font-face: Times New Roman" size="1" color="#000000">  </font></div></td> <td width="8" bgcolor="#cceeff"><div><font style="font-face: Times New Roman" size="2" color="#000000"> </font></div></td> <td width="56" bgcolor="#cceeff"><div align="right"><font style="font-face: Times New Roman" size="2" color="#000000">36,604</font></div></td> <td width="6" bgcolor="#cceeff"><div><font style="font-face: Times New Roman" size="2" color="#000000">  </font></div></td> <td width="25" bgcolor="#cceeff"><div><font style="font-face: Times New Roman" size="1" color="#000000">  </font></div></td> <td width="7" bgcolor="#cceeff"><div> </div></td> <td width="49" bgcolor="#cceeff"><div> </div></td> <td width="6" bgcolor="#cceeff"><div> </div></td> <td width="25" bgcolor="#cceeff"><div><font style="font-face: Times New Roman" size="1" color="#000000">  </font></div></td> <td width="7" bgcolor="#cceeff"><div> </div></td> <td width="47" bgcolor="#cceeff"><div> </div></td> <td width="6" bgcolor="#cceeff"><div> </div></td> </tr> <tr> <td width="207"><div> </div></td> <td width="25"><div><font style="font-face: Times New Roman" size="1" color="#000000">  </font></div></td> <td width="8"><div><font style="font-face: Times New Roman" size="1" color="#000000"> </font></div></td> <td width="56"><div><font style="font-face: Times New Roman" size="1" color="#000000"> </font></div></td> <td width="6"><div><font style="font-face: Times New Roman" size="1" color="#000000"> </font></div></td> <td width="25"><div><font style="font-face: Times New Roman" size="1" color="#000000">  </font></div></td> <td width="7"><div> </div></td> <td width="49"><div> </div></td> <td width="6"><div> </div></td> <td width="25"><div><font style="font-face: Times New Roman" size="1" color="#000000">  </font></div></td> <td width="7"><div> </div></td> <td width="47"><div> </div></td> <td width="6"><div> </div></td> </tr> <tr> <td width="207"><div><font style="font-face: Times New Roman" size="2" color="#000000">Total</font></div></td> <td width="25"><div><font style="font-face: Times New Roman" size="1" color="#000000">  </font></div></td> <td width="8"><div><font style="font-face: Times New Roman" size="2" color="#000000">$</font></div></td> <td width="56"><div align="right"><font style="font-face: Times New Roman" size="2" color="#000000">50,947</font></div></td> <td width="6"><div><font style="font-face: Times New Roman" size="2" color="#000000">  </font></div></td> <td width="25"><div><font style="font-face: Times New Roman" size="1" color="#000000">  </font></div></td> <td width="7"><div> </div></td> <td width="49"><div> </div></td> <td width="6"><div> </div></td> <td width="25"><div><font style="font-face: Times New Roman" size="1" color="#000000">  </font></div></td> <td width="7"><div> </div></td> <td width="47"><div> </div></td> <td width="6"><div> </div></td> </tr> <tr> <td width="207"><div> </div></td> <td width="25"><div><font style="font-face: Times New Roman" size="1" color="#000000">  </font></div></td> <td width="8"><div><font style="font-face: Times New Roman" size="1" color="#000000"> </font></div></td> <td width="56"><div><font style="font-face: Times New Roman" size="1" color="#000000"> </font></div></td> <td width="6"><div><font style="font-face: Times New Roman" size="1" color="#000000"> </font></div></td> <td width="25"><div><font style="font-face: Times New Roman" size="1" color="#000000">  </font></div></td> <td width="7"><div> </div></td> <td width="49"><div> </div></td> <td width="6"><div> </div></td> <td width="25"><div><font style="font-face: Times New Roman" size="1" color="#000000">  </font></div></td> <td width="7"><div> </div></td> <td width="47"><div> </div></td> <td width="6"><div> </div></td> </tr> </table> <div><font style="font-face: Times New Roman" size="1" color="#000000"><b> </b></font></div> <div><font style="font-face: Times New Roman" size="2" color="#000000"><b></b></font></div> <table border="0" cellspacing="0" cellpadding="0"> <tr> <td width="243"><div> </div></td> <td width="19"><div> </div></td> <td width="6"><div> </div></td> <td width="43"><div> </div></td> <td width="6"><div> </div></td> <td width="19"><div> </div></td> <td width="7"><div> </div></td> <td width="50"><div> </div></td> <td width="6"><div> </div></td> <td width="19"><div> </div></td> <td width="6"><div> </div></td> <td width="43"><div> </div></td> <td width="6"><div> </div></td> </tr> <tr> <td width="243"><div><font style="font-face: Times New Roman" size="1" color="#000000"> </font></div></td> <td width="19"><div><font style="font-face: Times New Roman" size="1" color="#000000">  </font></div></td> <td colspan="10" width="210"><div align="center"><font style="font-face: Times New Roman" size="1" color="#000000"><b>December 31, 2010</b></font></div></td> <td width="6"><div><font style="font-face: Times New Roman" size="1" color="#000000"> </font></div></td> </tr> <tr> <td width="243"><div><font style="font-face: Times New Roman" size="1" color="#000000"> </font></div></td> <td width="19"><div><font style="font-face: Times New Roman" size="1" color="#000000">  </font></div></td> <td colspan="2" width="50"><div align="center"><font style="font-face: Times New Roman" size="1" color="#000000"><b>Gross</b></font></div><div align="center"><font style="font-face: Times New Roman" size="1" color="#000000"><b>Carrying</b></font></div><div align="center"><font style="font-face: Times New Roman" size="1" color="#000000"><b>Amount</b></font></div></td> <td width="6"><div><font style="font-face: Times New Roman" size="1" color="#000000"> </font></div></td> <td width="19"><div><font style="font-face: Times New Roman" size="1" color="#000000">  </font></div></td> <td colspan="2" width="57"><div align="center"><font style="font-face: Times New Roman" size="1" color="#000000"><b>Accumulated</b></font></div><div align="center"><font style="font-face: Times New Roman" size="1" color="#000000"><b>Amortization</b></font></div></td> <td width="6"><div><font style="font-face: Times New Roman" size="1" color="#000000"> </font></div></td> <td width="19"><div><font style="font-face: Times New Roman" size="1" color="#000000">  </font></div></td> <td colspan="2" width="50"><div align="center"><font style="font-face: Times New Roman" size="1" color="#000000"><b>Net</b></font></div><div align="center"><font style="font-face: Times New Roman" size="1" color="#000000"><b>Carrying</b></font></div><div align="center"><font style="font-face: Times New Roman" size="1" color="#000000"><b>Amount</b></font></div></td> <td width="6"><div><font style="font-face: Times New Roman" size="1" color="#000000"> </font></div></td> </tr> <tr> <td width="243" bgcolor="#cceeff"><div><font style="font-face: Times New Roman" size="2" color="#000000">Amortized intangible assets:</font></div></td> <td width="19" bgcolor="#cceeff"><div><font style="font-face: Times New Roman" size="1" color="#000000">  </font></div></td> <td width="6" bgcolor="#cceeff"><div> </div></td> <td width="43" bgcolor="#cceeff"><div> </div></td> <td width="6" bgcolor="#cceeff"><div> </div></td> <td width="19" bgcolor="#cceeff"><div><font style="font-face: Times New Roman" size="1" color="#000000">  </font></div></td> <td width="7" bgcolor="#cceeff"><div> </div></td> <td width="50" bgcolor="#cceeff"><div> </div></td> <td width="6" bgcolor="#cceeff"><div> </div></td> <td width="19" bgcolor="#cceeff"><div><font style="font-face: Times New Roman" size="1" color="#000000">  </font></div></td> <td width="6" bgcolor="#cceeff"><div> </div></td> <td width="43" bgcolor="#cceeff"><div> </div></td> <td width="6" bgcolor="#cceeff"><div> </div></td> </tr> <tr> <td width="243"><div><font style="font-face: Times New Roman" size="2" color="#000000">Noncompete agreements</font></div></td> <td width="19"><div><font style="font-face: Times New Roman" size="1" color="#000000">  </font></div></td> <td width="6"><div><font style="font-face: Times New Roman" size="2" color="#000000">$</font></div></td> <td width="43"><div align="right"><font style="font-face: Times New Roman" size="2" color="#000000">4,970</font></div></td> <td width="6"><div><font style="font-face: Times New Roman" size="2" color="#000000">  </font></div></td> <td width="19"><div><font style="font-face: Times New Roman" size="1" color="#000000">  </font></div></td> <td width="7"><div><font style="font-face: Times New Roman" size="2" color="#000000">$</font></div></td> <td width="50"><div align="right"><font style="font-face: Times New Roman" size="2" color="#000000">3,833</font></div></td> <td width="6"><div><font style="font-face: Times New Roman" size="2" color="#000000">  </font></div></td> <td width="19"><div><font style="font-face: Times New Roman" size="1" color="#000000">  </font></div></td> <td width="6"><div><font style="font-face: Times New Roman" size="2" color="#000000">$</font></div></td> <td width="43"><div align="right"><font style="font-face: Times New Roman" size="2" color="#000000">1,137</font></div></td> <td width="6"><div><font style="font-face: Times New Roman" size="2" color="#000000">  </font></div></td> </tr> <tr> <td width="243" bgcolor="#cceeff"><div><font style="font-face: Times New Roman" size="2" color="#000000">Advertiser relationships</font></div></td> <td width="19" bgcolor="#cceeff"><div><font style="font-face: Times New Roman" size="1" color="#000000">  </font></div></td> <td width="6" bgcolor="#cceeff"><div><font style="font-face: Times New Roman" size="2" color="#000000"> </font></div></td> <td width="43" bgcolor="#cceeff"><div align="right"><font style="font-face: Times New Roman" size="2" color="#000000">286,478</font></div></td> <td width="6" bgcolor="#cceeff"><div><font style="font-face: Times New Roman" size="2" color="#000000">  </font></div></td> <td width="19" bgcolor="#cceeff"><div><font style="font-face: Times New Roman" size="1" color="#000000">  </font></div></td> <td width="7" bgcolor="#cceeff"><div><font style="font-face: Times New Roman" size="2" color="#000000"> </font></div></td> <td width="50" bgcolor="#cceeff"><div align="right"><font style="font-face: Times New Roman" size="2" color="#000000">116,618</font></div></td> <td width="6" bgcolor="#cceeff"><div><font style="font-face: Times New Roman" size="2" color="#000000">  </font></div></td> <td width="19" bgcolor="#cceeff"><div><font style="font-face: Times New Roman" size="1" color="#000000">  </font></div></td> <td width="6" bgcolor="#cceeff"><div><font style="font-face: Times New Roman" size="2" color="#000000"> </font></div></td> <td width="43" bgcolor="#cceeff"><div align="right"><font style="font-face: Times New Roman" size="2" color="#000000">169,860</font></div></td> <td width="6" bgcolor="#cceeff"><div><font style="font-face: Times New Roman" size="2" color="#000000">  </font></div></td> </tr> <tr> <td width="243"><div><font style="font-face: Times New Roman" size="2" color="#000000">Customer relationships</font></div></td> <td width="19"><div><font style="font-face: Times New Roman" size="1" color="#000000">  </font></div></td> <td width="6"><div><font style="font-face: Times New Roman" size="2" color="#000000"> </font></div></td> <td width="43"><div align="right"><font style="font-face: Times New Roman" size="2" color="#000000">8,940</font></div></td> <td width="6"><div><font style="font-face: Times New Roman" size="2" color="#000000">  </font></div></td> <td width="19"><div><font style="font-face: Times New Roman" size="1" color="#000000">  </font></div></td> <td width="7"><div><font style="font-face: Times New Roman" size="2" color="#000000"> </font></div></td> <td width="50"><div align="right"><font style="font-face: Times New Roman" size="2" color="#000000">2,296</font></div></td> <td width="6"><div><font style="font-face: Times New Roman" size="2" color="#000000">  </font></div></td> <td width="19"><div><font style="font-face: Times New Roman" size="1" color="#000000">  </font></div></td> <td width="6"><div><font style="font-face: Times New Roman" size="2" color="#000000"> </font></div></td> <td width="43"><div align="right"><font style="font-face: Times New Roman" size="2" color="#000000">6,644</font></div></td> <td width="6"><div><font style="font-face: Times New Roman" size="2" color="#000000">  </font></div></td> </tr> <tr> <td width="243" bgcolor="#cceeff"><div><font style="font-face: Times New Roman" size="2" color="#000000">Subscriber relationships</font></div></td> <td width="19" bgcolor="#cceeff"><div><font style="font-face: Times New Roman" size="1" color="#000000">  </font></div></td> <td width="6" bgcolor="#cceeff"><div><font style="font-face: Times New Roman" size="2" color="#000000"> </font></div></td> <td width="43" bgcolor="#cceeff"><div align="right"><font style="font-face: Times New Roman" size="2" color="#000000">83,158</font></div></td> <td width="6" bgcolor="#cceeff"><div><font style="font-face: Times New Roman" size="2" color="#000000">  </font></div></td> <td width="19" bgcolor="#cceeff"><div><font style="font-face: Times New Roman" size="1" color="#000000">  </font></div></td> <td width="7" bgcolor="#cceeff"><div><font style="font-face: Times New Roman" size="2" color="#000000"> </font></div></td> <td width="50" bgcolor="#cceeff"><div align="right"><font style="font-face: Times New Roman" size="2" color="#000000">29,987</font></div></td> <td width="6" bgcolor="#cceeff"><div><font style="font-face: Times New Roman" size="2" color="#000000">  </font></div></td> <td width="19" bgcolor="#cceeff"><div><font style="font-face: Times New Roman" size="1" color="#000000">  </font></div></td> <td width="6" bgcolor="#cceeff"><div><font style="font-face: Times New Roman" size="2" color="#000000"> </font></div></td> <td width="43" bgcolor="#cceeff"><div align="right"><font style="font-face: Times New Roman" size="2" color="#000000">53,171</font></div></td> <td width="6" bgcolor="#cceeff"><div><font style="font-face: Times New Roman" size="2" color="#000000">  </font></div></td> </tr> <tr> <td width="243"><div><font style="font-face: Times New Roman" size="2" color="#000000">Trade name</font></div></td> <td width="19"><div><font style="font-face: Times New Roman" size="1" color="#000000">  </font></div></td> <td width="6"><div><font style="font-face: Times New Roman" size="2" color="#000000"> </font></div></td> <td width="43"><div align="right"><font style="font-face: Times New Roman" size="2" color="#000000">5,493</font></div></td> <td width="6"><div><font style="font-face: Times New Roman" size="2" color="#000000">  </font></div></td> <td width="19"><div><font style="font-face: Times New Roman" size="1" color="#000000">  </font></div></td> <td width="7"><div><font style="font-face: Times New Roman" size="2" color="#000000"> </font></div></td> <td width="50"><div align="right"><font style="font-face: Times New Roman" size="2" color="#000000">2,105</font></div></td> <td width="6"><div><font style="font-face: Times New Roman" size="2" color="#000000">  </font></div></td> <td width="19"><div><font style="font-face: Times New Roman" size="1" color="#000000">  </font></div></td> <td width="6"><div><font style="font-face: Times New Roman" size="2" color="#000000"> </font></div></td> <td width="43"><div align="right"><font style="font-face: Times New Roman" size="2" color="#000000">3,388</font></div></td> <td width="6"><div><font style="font-face: Times New Roman" size="2" color="#000000">  </font></div></td> </tr> <tr> <td width="243" bgcolor="#cceeff"><div><font style="font-face: Times New Roman" size="2" color="#000000">Publication rights</font></div></td> <td width="19" bgcolor="#cceeff"><div><font style="font-face: Times New Roman" size="1" color="#000000">  </font></div></td> <td width="6" bgcolor="#cceeff"><div><font style="font-face: Times New Roman" size="2" color="#000000"> </font></div></td> <td width="43" bgcolor="#cceeff"><div align="right"><font style="font-face: Times New Roman" size="2" color="#000000">345</font></div></td> <td width="6" bgcolor="#cceeff"><div><font style="font-face: Times New Roman" size="2" color="#000000">  </font></div></td> <td width="19" bgcolor="#cceeff"><div><font style="font-face: Times New Roman" size="1" color="#000000">  </font></div></td> <td width="7" bgcolor="#cceeff"><div><font style="font-face: Times New Roman" size="2" color="#000000"> </font></div></td> <td width="50" bgcolor="#cceeff"><div align="right"><font style="font-face: Times New Roman" size="2" color="#000000">88</font></div></td> <td width="6" bgcolor="#cceeff"><div><font style="font-face: Times New Roman" size="2" color="#000000">  </font></div></td> <td width="19" bgcolor="#cceeff"><div><font style="font-face: Times New Roman" size="1" color="#000000">  </font></div></td> <td width="6" bgcolor="#cceeff"><div><font style="font-face: Times New Roman" size="2" color="#000000"> </font></div></td> <td width="43" bgcolor="#cceeff"><div align="right"><font style="font-face: Times New Roman" size="2" color="#000000">257</font></div></td> <td width="6" bgcolor="#cceeff"><div><font style="font-face: Times New Roman" size="2" color="#000000">  </font></div></td> </tr> <tr> <td width="243"><div> </div></td> <td width="19"><div><font style="font-face: Times New Roman" size="1" color="#000000">  </font></div></td> <td width="6"><div><font style="font-face: Times New Roman" size="1" color="#000000"> </font></div></td> <td width="43"><div><font style="font-face: Times New Roman" size="1" color="#000000"> </font></div></td> <td width="6"><div><font style="font-face: Times New Roman" size="1" color="#000000"> </font></div></td> <td width="19"><div><font style="font-face: Times New Roman" size="1" color="#000000">  </font></div></td> <td width="7"><div><font style="font-face: Times New Roman" size="1" color="#000000"> </font></div></td> <td width="50"><div><font style="font-face: Times New Roman" size="1" color="#000000"> </font></div></td> <td width="6"><div><font style="font-face: Times New Roman" size="1" color="#000000"> </font></div></td> <td width="19"><div><font style="font-face: Times New Roman" size="1" color="#000000">  </font></div></td> <td width="6"><div><font style="font-face: Times New Roman" size="1" color="#000000"> </font></div></td> <td width="43"><div><font style="font-face: Times New Roman" size="1" color="#000000"> </font></div></td> <td width="6"><div><font style="font-face: Times New Roman" size="1" color="#000000"> </font></div></td> </tr> <tr> <td width="243"><div><font style="font-face: Times New Roman" size="2" color="#000000">Total</font></div></td> <td width="19"><div><font style="font-face: Times New Roman" size="1" color="#000000">  </font></div></td> <td width="6"><div><font style="font-face: Times New Roman" size="2" color="#000000">$</font></div></td> <td width="43"><div align="right"><font style="font-face: Times New Roman" size="2" color="#000000">389,384</font></div></td> <td width="6"><div><font style="font-face: Times New Roman" size="2" color="#000000">  </font></div></td> <td width="19"><div><font style="font-face: Times New Roman" size="1" color="#000000">  </font></div></td> <td width="7"><div><font style="font-face: Times New Roman" size="2" color="#000000">$</font></div></td> <td width="50"><div align="right"><font style="font-face: Times New Roman" size="2" color="#000000">154,927</font></div></td> <td width="6"><div><font style="font-face: Times New Roman" size="2" color="#000000">  </font></div></td> <td width="19"><div><font style="font-face: Times New Roman" size="1" color="#000000">  </font></div></td> <td width="6"><div><font style="font-face: Times New Roman" size="2" color="#000000">$</font></div></td> <td width="43"><div align="right"><font style="font-face: Times New Roman" size="2" color="#000000">234,457</font></div></td> <td width="6"><div><font style="font-face: Times New Roman" size="2" color="#000000">  </font></div></td> </tr> <tr> <td width="243"><div> </div></td> <td width="19"><div><font style="font-face: Times New Roman" size="1" color="#000000">  </font></div></td> <td width="6"><div><font style="font-face: Times New Roman" size="1" color="#000000"> </font></div></td> <td width="43"><div><font style="font-face: Times New Roman" size="1" color="#000000"> </font></div></td> <td width="6"><div><font style="font-face: Times New Roman" size="1" color="#000000"> </font></div></td> <td width="19"><div><font style="font-face: Times New Roman" size="1" color="#000000">  </font></div></td> <td width="7"><div><font style="font-face: Times New Roman" size="1" color="#000000"> </font></div></td> <td width="50"><div><font style="font-face: Times New Roman" size="1" color="#000000"> </font></div></td> <td width="6"><div><font style="font-face: Times New Roman" size="1" color="#000000"> </font></div></td> <td width="19"><div><font style="font-face: Times New Roman" size="1" color="#000000">  </font></div></td> <td width="6"><div><font style="font-face: Times New Roman" size="1" color="#000000"> </font></div></td> <td width="43"><div><font style="font-face: Times New Roman" size="1" color="#000000"> </font></div></td> <td width="6"><div><font style="font-face: Times New Roman" size="1" color="#000000"> </font></div></td> </tr> <tr> <td width="243" bgcolor="#cceeff"><div><font style="font-face: Times New Roman" size="2" color="#000000">Nonamortized intangible assets:</font></div></td> <td width="19" bgcolor="#cceeff"><div><font style="font-face: Times New Roman" size="1" color="#000000">  </font></div></td> <td width="6" bgcolor="#cceeff"><div> </div></td> <td width="43" bgcolor="#cceeff"><div> </div></td> <td width="6" bgcolor="#cceeff"><div> </div></td> <td width="19" bgcolor="#cceeff"><div><font style="font-face: Times New Roman" size="1" color="#000000">  </font></div></td> <td width="7" bgcolor="#cceeff"><div> </div></td> <td width="50" bgcolor="#cceeff"><div> </div></td> <td width="6" bgcolor="#cceeff"><div> </div></td> <td width="19" bgcolor="#cceeff"><div><font style="font-face: Times New Roman" size="1" color="#000000">  </font></div></td> <td width="6" bgcolor="#cceeff"><div> </div></td> <td width="43" bgcolor="#cceeff"><div> </div></td> <td width="6" bgcolor="#cceeff"><div> </div></td> </tr> <tr> <td width="243"><div><font style="font-face: Times New Roman" size="2" color="#000000">Goodwill</font></div></td> <td width="19"><div><font style="font-face: Times New Roman" size="1" color="#000000">  </font></div></td> <td width="6"><div><font style="font-face: Times New Roman" size="2" color="#000000">$</font></div></td> <td width="43"><div align="right"><font style="font-face: Times New Roman" size="2" color="#000000">14,343</font></div></td> <td width="6"><div><font style="font-face: Times New Roman" size="2" color="#000000">  </font></div></td> <td width="19"><div><font style="font-face: Times New Roman" size="1" color="#000000">  </font></div></td> <td width="7"><div> </div></td> <td width="50"><div> </div></td> <td width="6"><div> </div></td> <td width="19"><div><font style="font-face: Times New Roman" size="1" color="#000000">  </font></div></td> <td width="6"><div> </div></td> <td width="43"><div> </div></td> <td width="6"><div> </div></td> </tr> <tr> <td width="243" bgcolor="#cceeff"><div><font style="font-face: Times New Roman" size="2" color="#000000">Mastheads</font></div></td> <td width="19" bgcolor="#cceeff"><div><font style="font-face: Times New Roman" size="1" color="#000000">  </font></div></td> <td width="6" bgcolor="#cceeff"><div><font style="font-face: Times New Roman" size="2" color="#000000"> </font></div></td> <td width="43" bgcolor="#cceeff"><div align="right"><font style="font-face: Times New Roman" size="2" color="#000000">36,604</font></div></td> <td width="6" bgcolor="#cceeff"><div><font style="font-face: Times New Roman" size="2" color="#000000">  </font></div></td> <td width="19" bgcolor="#cceeff"><div><font style="font-face: Times New Roman" size="1" color="#000000">  </font></div></td> <td width="7" bgcolor="#cceeff"><div> </div></td> <td width="50" bgcolor="#cceeff"><div> </div></td> <td width="6" bgcolor="#cceeff"><div> </div></td> <td width="19" bgcolor="#cceeff"><div><font style="font-face: Times New Roman" size="1" color="#000000">  </font></div></td> <td width="6" bgcolor="#cceeff"><div> </div></td> <td width="43" bgcolor="#cceeff"><div> </div></td> <td width="6" bgcolor="#cceeff"><div> </div></td> </tr> <tr> <td width="243"><div> </div></td> <td width="19"><div><font style="font-face: Times New Roman" size="1" color="#000000">  </font></div></td> <td width="6"><div><font style="font-face: Times New Roman" size="1" color="#000000"> </font></div></td> <td width="43"><div><font style="font-face: Times New Roman" size="1" color="#000000"> </font></div></td> <td width="6"><div><font style="font-face: Times New Roman" size="1" color="#000000"> </font></div></td> <td width="19"><div><font style="font-face: Times New Roman" size="1" color="#000000">  </font></div></td> <td width="7"><div> </div></td> <td width="50"><div> </div></td> <td width="6"><div> </div></td> <td width="19"><div><font style="font-face: Times New Roman" size="1" color="#000000">  </font></div></td> <td width="6"><div> </div></td> <td width="43"><div> </div></td> <td width="6"><div> </div></td> </tr> <tr> <td width="243"><div><font style="font-face: Times New Roman" size="2" color="#000000">Total</font></div></td> <td width="19"><div><font style="font-face: Times New Roman" size="1" color="#000000">  </font></div></td> <td width="6"><div><font style="font-face: Times New Roman" size="2" color="#000000">$</font></div></td> <td width="43"><div align="right"><font style="font-face: Times New Roman" size="2" color="#000000">50,947</font></div></td> <td width="6"><div><font style="font-face: Times New Roman" size="2" color="#000000">  </font></div></td> <td width="19"><div><font style="font-face: Times New Roman" size="1" color="#000000">  </font></div></td> <td width="7"><div> </div></td> <td width="50"><div> </div></td> <td width="6"><div> </div></td> <td width="19"><div><font style="font-face: Times New Roman" size="1" color="#000000">  </font></div></td> <td width="6"><div> </div></td> <td width="43"><div> </div></td> <td width="6"><div> </div></td> </tr> <tr> <td width="243"><div> </div></td> <td width="19"><div><font style="font-face: Times New Roman" size="1" color="#000000">  </font></div></td> <td width="6"><div><font style="font-face: Times New Roman" size="1" color="#000000"> </font></div></td> <td width="43"><div><font style="font-face: Times New Roman" size="1" color="#000000"> </font></div></td> <td width="6"><div><font style="font-face: Times New Roman" size="1" color="#000000"> </font></div></td> <td width="19"><div><font style="font-face: Times New Roman" size="1" color="#000000">  </font></div></td> <td width="7"><div> </div></td> <td width="50"><div> </div></td> <td width="6"><div> </div></td> <td width="19"><div><font style="font-face: Times New Roman" size="1" color="#000000">  </font></div></td> <td width="6"><div> </div></td> <td width="43"><div> </div></td> <td width="6"><div> </div></td> </tr> </table> <div><font style="font-face: Times New Roman" size="2" color="#000000">The weighted average amortization periods for amortizable intangible assets are 4.4 years for noncompete agreements, 16.8 years for advertiser relationships, 13.8 years for customer relationships, 17.2 years for subscriber relationships, 10.0 years for trade names and 15.0 years for publication rights. </font></div> <div><font style="font-face: Times New Roman" size="3" color="#000000"></font><font style="font-face: Times New Roman" size="2" color="#000000">Amortization expense for the three and six months ended June 26, 2011 and June 30, 2010 was $6,106, $6,135, $12,228 and $12,270, respectively. Estimated future amortization expense as of June 26, 2011 is as follows: </font></div> <div><font style="font-face: Times New Roman" size="3" color="#000000"></font><font style="font-face: Times New Roman" size="2" color="#000000"> </font></div> <div><font style="font-face: Times New Roman" size="2" color="#000000"></font></div> <table border="0" cellspacing="0" cellpadding="0"> <tr> <td width="351"><div> </div></td> <td width="20"><div> </div></td> <td width="6"><div> </div></td> <td width="43"><div> </div></td> <td width="6"><div> </div></td> </tr> <tr> <td width="351" bgcolor="#cceeff"><div><font style="font-face: Times New Roman" size="2" color="#000000">For the years ending the Sunday closest to December 31:</font></div></td> <td width="20" bgcolor="#cceeff"><div><font style="font-face: Times New Roman" size="1" color="#000000">  </font></div></td> <td width="6" bgcolor="#cceeff"><div> </div></td> <td width="43" bgcolor="#cceeff"><div> </div></td> <td width="6" bgcolor="#cceeff"><div> </div></td> </tr> <tr> <td width="351"><div><font style="font-face: Times New Roman" size="2" color="#000000">2011</font></div></td> <td width="20"><div><font style="font-face: Times New Roman" size="1" color="#000000">  </font></div></td> <td width="6"><div><font style="font-face: Times New Roman" size="2" color="#000000"> </font></div></td> <td width="43"><div align="right"><font style="font-face: Times New Roman" size="2" color="#000000">12,173</font></div></td> <td width="6"><div><font style="font-face: Times New Roman" size="2" color="#000000">  </font></div></td> </tr> <tr> <td width="351" bgcolor="#cceeff"><div><font style="font-face: Times New Roman" size="2" color="#000000">2012</font></div></td> <td width="20" bgcolor="#cceeff"><div><font style="font-face: Times New Roman" size="1" color="#000000">  </font></div></td> <td width="6" bgcolor="#cceeff"><div><font style="font-face: Times New Roman" size="2" color="#000000"> </font></div></td> <td width="43" bgcolor="#cceeff"><div align="right"><font style="font-face: Times New Roman" size="2" color="#000000">24,092</font></div></td> <td width="6" bgcolor="#cceeff"><div><font style="font-face: Times New Roman" size="2" color="#000000">  </font></div></td> </tr> <tr> <td width="351"><div><font style="font-face: Times New Roman" size="2" color="#000000">2013</font></div></td> <td width="20"><div><font style="font-face: Times New Roman" size="1" color="#000000">  </font></div></td> <td width="6"><div><font style="font-face: Times New Roman" size="2" color="#000000"> </font></div></td> <td width="43"><div align="right"><font style="font-face: Times New Roman" size="2" color="#000000">23,809</font></div></td> <td width="6"><div><font style="font-face: Times New Roman" size="2" color="#000000">  </font></div></td> </tr> <tr> <td width="351" bgcolor="#cceeff"><div><font style="font-face: Times New Roman" size="2" color="#000000">2014</font></div></td> <td width="20" bgcolor="#cceeff"><div><font style="font-face: Times New Roman" size="1" color="#000000">  </font></div></td> <td width="6" bgcolor="#cceeff"><div><font style="font-face: Times New Roman" size="2" color="#000000"> </font></div></td> <td width="43" bgcolor="#cceeff"><div align="right"><font style="font-face: Times New Roman" size="2" color="#000000">23,764</font></div></td> <td width="6" bgcolor="#cceeff"><div><font style="font-face: Times New Roman" size="2" color="#000000">  </font></div></td> </tr> <tr> <td width="351"><div><font style="font-face: Times New Roman" size="2" color="#000000">2015</font></div></td> <td width="20"><div><font style="font-face: Times New Roman" size="1" color="#000000">  </font></div></td> <td width="6"><div><font style="font-face: Times New Roman" size="2" color="#000000"> </font></div></td> <td width="43"><div align="right"><font style="font-face: Times New Roman" size="2" color="#000000">23,730</font></div></td> <td width="6"><div><font style="font-face: Times New Roman" size="2" color="#000000">  </font></div></td> </tr> <tr> <td width="351" bgcolor="#cceeff"><div><font style="font-face: Times New Roman" size="2" color="#000000">Thereafter</font></div></td> <td width="20" bgcolor="#cceeff"><div><font style="font-face: Times New Roman" size="1" color="#000000">  </font></div></td> <td width="6" bgcolor="#cceeff"><div><font style="font-face: Times New Roman" size="2" color="#000000"> </font></div></td> <td width="43" bgcolor="#cceeff"><div align="right"><font style="font-face: Times New Roman" size="2" color="#000000">114,662</font></div></td> <td width="6" bgcolor="#cceeff"><div><font style="font-face: Times New Roman" size="2" color="#000000">  </font></div></td> </tr> <tr> <td width="351"><div> </div></td> <td width="20"><div><font style="font-face: Times New Roman" size="1" color="#000000">  </font></div></td> <td width="6"><div><font style="font-face: Times New Roman" size="1" color="#000000"> </font></div></td> <td width="43"><div><font style="font-face: Times New Roman" size="1" color="#000000"> </font></div></td> <td width="6"><div><font style="font-face: Times New Roman" size="1" color="#000000"> </font></div></td> </tr> <tr> <td width="351"><div><font style="font-face: Times New Roman" size="2" color="#000000">Total</font></div></td> <td width="20"><div><font style="font-face: Times New Roman" size="1" color="#000000">  </font></div></td> <td width="6"><div><font style="font-face: Times New Roman" size="2" color="#000000">$</font></div></td> <td width="43"><div align="right"><font style="font-face: Times New Roman" size="2" color="#000000">222,230</font></div></td> <td width="6"><div><font style="font-face: Times New Roman" size="2" color="#000000">  </font></div></td> </tr> <tr> <td width="351"><div> </div></td> <td width="20"><div><font style="font-face: Times New Roman" size="1" color="#000000">  </font></div></td> <td width="6"><div><font style="font-face: Times New Roman" size="1" color="#000000"> </font></div></td> <td width="43"><div><font style="font-face: Times New Roman" size="1" color="#000000"> </font></div></td> <td width="6"><div><font style="font-face: Times New Roman" size="1" color="#000000"> </font></div></td> </tr> </table> <div><font style="font-face: Times New Roman" size="2" color="#000000">The Company's annual impairment assessment is made on the last day of its second fiscal quarter. </font></div> <div><font style="font-face: Times New Roman" size="3" color="#000000"></font><font style="font-face: Times New Roman" size="2" color="#000000">As part of the annual impairment assessment, as of June 26, 2011, the fair values of the Company's reporting units for goodwill impairment testing and individual newspaper mastheads were estimated using the expected present value of future cash flows, recent industry transaction multiples and using estimates, judgments and assumptions that management believes were appropriate in the circumstances. The estimates and judgments used in the assessment included multiples for revenue and EBITDA, the weighted average cost of capital and the terminal growth rate. Given the current market conditions, the Company determined that current transactions provided the best estimate of the fair value of its reporting units. Given the stabilization of operating results, no impairment indicators were identified for the only remaining reporting unit having a goodwill balance and all mastheads as the estimated fair value exceeded carrying value. The total Company's estimate of fair value was reconciled to its then market capitalization (based upon the stock market price and fair value of debt) plus an estimated control premium. </font></div> <div><font style="font-face: Times New Roman" size="3" color="#000000"></font><font style="font-face: Times New Roman" size="2" color="#000000">It is reasonably possible that impairment charges could be incurred in the future based on industry and market factors present at that time. The Company is unable to estimate any possible future impairment charges at this time.</font></div> <div><font style="font-face: Times New Roman" size="3" color="#000000"></font></div>

-1087000

-310000

235261

-1559465000

-62614000

830787000

568000

58313868

<div><font style="font-face: Times New Roman" size="2" color="#000000"><b>(4) Restructuring </b></font></div> <div><font style="font-face: Times New Roman" size="3" color="#000000"></font><font style="font-face: Times New Roman" size="2" color="#000000">Over the past several years, and in furtherance of the Company's cost reduction and cash preservation plans outlined in Note 1, the Company has engaged in a series of individual restructuring programs, designed primarily to right size the Company's employee base, consolidate its facilities and improve its operations. These initiatives impact all of the Company's geographic regions and are often impacted by the terms of union contracts within the region. All costs related to these programs, which primarily reflect severance expense, are accrued at the time of announcement. </font></div> <div><font style="font-face: Times New Roman" size="3" color="#000000"></font><font style="font-face: Times New Roman" size="1" color="#000000"> </font></div> <div><font style="font-face: Times New Roman" size="3" color="#000000"></font><font style="font-face: Times New Roman" size="2" color="#000000">Information related to restructuring program activity during the twelve months ended December 31, 2010 and the six months ended June 26, 2011 is outlined below. </font></div> <div><font style="font-face: Times New Roman" size="3" color="#000000"></font><font style="font-face: Times New Roman" size="2" color="#000000"> </font></div> <div><font style="font-face: Times New Roman" size="2" color="#000000"></font></div> <table border="0" cellspacing="0" cellpadding="0"> <tr> <td width="268"><div> </div></td> <td width="30"><div> </div></td> <td width="10"><div> </div></td> <td width="52"><div> </div></td> <td width="7"><div> </div></td> <td width="30"><div> </div></td> <td width="6"><div> </div></td> <td width="34"><div> </div></td> <td width="7"><div> </div></td> <td width="30"><div> </div></td> <td width="6"><div> </div></td> <td width="34"><div> </div></td> <td width="7"><div> </div></td> </tr> <tr> <td width="268"><div><font style="font-face: Times New Roman" size="1" color="#000000"> </font></div></td> <td width="30"><div><font style="font-face: Times New Roman" size="1" color="#000000">  </font></div></td> <td colspan="2" width="62"><div align="center"><font style="font-face: Times New Roman" size="1" color="#000000"><b>Severance and</b></font></div><div align="center"><font style="font-face: Times New Roman" size="1" color="#000000"><b>Related Costs</b></font></div></td> <td width="7"><div><font style="font-face: Times New Roman" size="1" color="#000000"> </font></div></td> <td width="30"><div><font style="font-face: Times New Roman" size="1" color="#000000"> </font></div></td> <td colspan="2" width="41"><div align="center"><font style="font-face: Times New Roman" size="1" color="#000000"><b>Other</b></font></div><div align="center"><font style="font-face: Times New Roman" size="3" color="#000000"></font><font style="font-face: Times New Roman" size="1" color="#000000"><b>Costs </b><sup><b>(1)</b></sup></font></div></td> <td width="7"><div><font style="font-face: Times New Roman" size="1" color="#000000"> </font></div></td> <td width="30"><div><font style="font-face: Times New Roman" size="1" color="#000000"> </font></div></td> <td colspan="2" width="41"><div align="center"><font style="font-face: Times New Roman" size="1" color="#000000"><b>Total</b></font></div></td> <td width="7"><div><font style="font-face: Times New Roman" size="1" color="#000000"> </font></div></td> </tr> <tr> <td width="268" bgcolor="#cceeff"><div><font style="font-face: Times New Roman" size="2" color="#000000">Balance at December 31, 2009</font></div></td> <td width="30" bgcolor="#cceeff"><div><font style="font-face: Times New Roman" size="1" color="#000000">  </font></div></td> <td width="10" bgcolor="#cceeff"><div><font style="font-face: Times New Roman" size="2" color="#000000">$</font></div></td> <td width="52" bgcolor="#cceeff"><div align="right"><font style="font-face: Times New Roman" size="2" color="#000000">245</font></div></td> <td width="7" bgcolor="#cceeff"><div><font style="font-face: Times New Roman" size="2" color="#000000">  </font></div></td> <td width="30" bgcolor="#cceeff"><div><font style="font-face: Times New Roman" size="1" color="#000000"> </font></div></td> <td width="6" bgcolor="#cceeff"><div><font style="font-face: Times New Roman" size="2" color="#000000">$</font></div></td> <td width="34" bgcolor="#cceeff"><div align="right"><font style="font-face: Times New Roman" size="2" color="#000000">20</font></div></td> <td width="7" bgcolor="#cceeff"><div><font style="font-face: Times New Roman" size="2" color="#000000">  </font></div></td> <td width="30" bgcolor="#cceeff"><div><font style="font-face: Times New Roman" size="1" color="#000000"> </font></div></td> <td width="6" bgcolor="#cceeff"><div><font style="font-face: Times New Roman" size="2" color="#000000">$</font></div></td> <td width="34" bgcolor="#cceeff"><div align="right"><font style="font-face: Times New Roman" size="2" color="#000000">265</font></div></td> <td width="7" bgcolor="#cceeff"><div><font style="font-face: Times New Roman" size="2" color="#000000">  </font></div></td> </tr> <tr> <td width="268"><div><font style="font-face: Times New Roman" size="2" color="#000000">Restructuring provision included in integration and reorganization </font><font style="font-face: Times New Roman" size="1" color="#000000"><sup>(2)</sup></font></div></td> <td width="30"><div><font style="font-face: Times New Roman" size="1" color="#000000">  </font></div></td> <td width="10"><div><font style="font-face: Times New Roman" size="2" color="#000000"> </font></div></td> <td width="52"><div align="right"><font style="font-face: Times New Roman" size="2" color="#000000">1,189</font></div></td> <td width="7"><div><font style="font-face: Times New Roman" size="2" color="#000000">  </font></div></td> <td width="30"><div><font style="font-face: Times New Roman" size="1" color="#000000"> </font></div></td> <td width="6"><div><font style="font-face: Times New Roman" size="2" color="#000000"> </font></div></td> <td width="34"><div align="right"><font style="font-face: Times New Roman" size="2" color="#000000">1,288</font></div></td> <td width="7"><div><font style="font-face: Times New Roman" size="2" color="#000000">  </font></div></td> <td width="30"><div><font style="font-face: Times New Roman" size="1" color="#000000"> </font></div></td> <td width="6"><div><font style="font-face: Times New Roman" size="2" color="#000000"> </font></div></td> <td width="34"><div align="right"><font style="font-face: Times New Roman" size="2" color="#000000">2,477</font></div></td> <td width="7"><div><font style="font-face: Times New Roman" size="2" color="#000000">  </font></div></td> </tr> <tr> <td width="268" bgcolor="#cceeff"><div><font style="font-face: Times New Roman" size="2" color="#000000">Cash payments</font></div></td> <td width="30" bgcolor="#cceeff"><div><font style="font-face: Times New Roman" size="1" color="#000000">  </font></div></td> <td width="10" bgcolor="#cceeff"><div><font style="font-face: Times New Roman" size="2" color="#000000"> </font></div></td> <td width="52" bgcolor="#cceeff"><div align="right"><font style="font-face: Times New Roman" size="2" color="#000000">(1,181</font></div></td> <td width="7" bgcolor="#cceeff"><div><font style="font-face: Times New Roman" size="2" color="#000000">) </font></div></td> <td width="30" bgcolor="#cceeff"><div><font style="font-face: Times New Roman" size="1" color="#000000"> </font></div></td> <td width="6" bgcolor="#cceeff"><div><font style="font-face: Times New Roman" size="2" color="#000000"> </font></div></td> <td width="34" bgcolor="#cceeff"><div align="right"><font style="font-face: Times New Roman" size="2" color="#000000">(1,307</font></div></td> <td width="7" bgcolor="#cceeff"><div><font style="font-face: Times New Roman" size="2" color="#000000">) </font></div></td> <td width="30" bgcolor="#cceeff"><div><font style="font-face: Times New Roman" size="1" color="#000000"> </font></div></td> <td width="6" bgcolor="#cceeff"><div><font style="font-face: Times New Roman" size="2" color="#000000"> </font></div></td> <td width="34" bgcolor="#cceeff"><div align="right"><font style="font-face: Times New Roman" size="2" color="#000000">(2,488</font></div></td> <td width="7" bgcolor="#cceeff"><div><font style="font-face: Times New Roman" size="2" color="#000000">) </font></div></td> </tr> <tr> <td width="268"><div> </div></td> <td width="30"><div><font style="font-face: Times New Roman" size="1" color="#000000">  </font></div></td> <td width="10"><div><font style="font-face: Times New Roman" size="1" color="#000000"> </font></div></td> <td width="52"><div><font style="font-face: Times New Roman" size="1" color="#000000"> </font></div></td> <td width="7"><div><font style="font-face: Times New Roman" size="1" color="#000000"> </font></div></td> <td width="30"><div><font style="font-face: Times New Roman" size="1" color="#000000"> </font></div></td> <td width="6"><div><font style="font-face: Times New Roman" size="1" color="#000000"> </font></div></td> <td width="34"><div><font style="font-face: Times New Roman" size="1" color="#000000"> </font></div></td> <td width="7"><div><font style="font-face: Times New Roman" size="1" color="#000000"> </font></div></td> <td width="30"><div><font style="font-face: Times New Roman" size="1" color="#000000"> </font></div></td> <td width="6"><div><font style="font-face: Times New Roman" size="1" color="#000000"> </font></div></td> <td width="34"><div><font style="font-face: Times New Roman" size="1" color="#000000"> </font></div></td> <td width="7"><div><font style="font-face: Times New Roman" size="1" color="#000000"> </font></div></td> </tr> <tr> <td width="268"><div><font style="font-face: Times New Roman" size="2" color="#000000">Balance at December 31, 2010</font></div></td> <td width="30"><div><font style="font-face: Times New Roman" size="1" color="#000000">  </font></div></td> <td width="10"><div><font style="font-face: Times New Roman" size="2" color="#000000">$</font></div></td> <td width="52"><div align="right"><font style="font-face: Times New Roman" size="2" color="#000000">253</font></div></td> <td width="7"><div><font style="font-face: Times New Roman" size="2" color="#000000">  </font></div></td> <td width="30"><div><font style="font-face: Times New Roman" size="1" color="#000000"> </font></div></td> <td width="6"><div><font style="font-face: Times New Roman" size="2" color="#000000">$</font></div></td> <td width="34"><div align="right"><font style="font-face: Times New Roman" size="2" color="#000000">1</font></div></td> <td width="7"><div><font style="font-face: Times New Roman" size="2" color="#000000">  </font></div></td> <td width="30"><div><font style="font-face: Times New Roman" size="1" color="#000000"> </font></div></td> <td width="6"><div><font style="font-face: Times New Roman" size="2" color="#000000">$</font></div></td> <td width="34"><div align="right"><font style="font-face: Times New Roman" size="2" color="#000000">254</font></div></td> <td width="7"><div><font style="font-face: Times New Roman" size="2" color="#000000">  </font></div></td> </tr> <tr> <td width="268" bgcolor="#cceeff"><div><font style="font-face: Times New Roman" size="2" color="#000000">Restructuring provision included in integration and reorganization</font></div></td> <td width="30" bgcolor="#cceeff"><div><font style="font-face: Times New Roman" size="1" color="#000000">  </font></div></td> <td width="10" bgcolor="#cceeff"><div><font style="font-face: Times New Roman" size="2" color="#000000"> </font></div></td> <td width="52" bgcolor="#cceeff"><div align="right"><font style="font-face: Times New Roman" size="2" color="#000000">1,812</font></div></td> <td width="7" bgcolor="#cceeff"><div><font style="font-face: Times New Roman" size="2" color="#000000">  </font></div></td> <td width="30" bgcolor="#cceeff"><div><font style="font-face: Times New Roman" size="1" color="#000000"> </font></div></td> <td width="6" bgcolor="#cceeff"><div><font style="font-face: Times New Roman" size="2" color="#000000"> </font></div></td> <td width="34" bgcolor="#cceeff"><div align="right"><font style="font-face: Times New Roman" size="2" color="#000000">267</font></div></td> <td width="7" bgcolor="#cceeff"><div><font style="font-face: Times New Roman" size="2" color="#000000">  </font></div></td> <td width="30" bgcolor="#cceeff"><div><font style="font-face: Times New Roman" size="1" color="#000000"> </font></div></td> <td width="6" bgcolor="#cceeff"><div><font style="font-face: Times New Roman" size="2" color="#000000"> </font></div></td> <td width="34" bgcolor="#cceeff"><div align="right"><font style="font-face: Times New Roman" size="2" color="#000000">2,079</font></div></td> <td width="7" bgcolor="#cceeff"><div><font style="font-face: Times New Roman" size="2" color="#000000">  </font></div></td> </tr> <tr> <td width="268"><div><font style="font-face: Times New Roman" size="2" color="#000000">Cash payments</font></div></td> <td width="30"><div><font style="font-face: Times New Roman" size="1" color="#000000">  </font></div></td> <td width="10"><div><font style="font-face: Times New Roman" size="2" color="#000000"> </font></div></td> <td width="52"><div align="right"><font style="font-face: Times New Roman" size="2" color="#000000">(1,363</font></div></td> <td width="7"><div><font style="font-face: Times New Roman" size="2" color="#000000">) </font></div></td> <td width="30"><div><font style="font-face: Times New Roman" size="1" color="#000000"> </font></div></td> <td width="6"><div><font style="font-face: Times New Roman" size="2" color="#000000"> </font></div></td> <td width="34"><div align="right"><font style="font-face: Times New Roman" size="2" color="#000000">(248</font></div></td> <td width="7"><div><font style="font-face: Times New Roman" size="2" color="#000000">) </font></div></td> <td width="30"><div><font style="font-face: Times New Roman" size="1" color="#000000"> </font></div></td> <td width="6"><div><font style="font-face: Times New Roman" size="2" color="#000000"> </font></div></td> <td width="34"><div align="right"><font style="font-face: Times New Roman" size="2" color="#000000">(1,611</font></div></td> <td width="7"><div><font style="font-face: Times New Roman" size="2" color="#000000">) </font></div></td> </tr> <tr> <td width="268"><div> </div></td> <td width="30"><div><font style="font-face: Times New Roman" size="1" color="#000000">  </font></div></td> <td width="10"><div><font style="font-face: Times New Roman" size="1" color="#000000"> </font></div></td> <td width="52"><div><font style="font-face: Times New Roman" size="1" color="#000000"> </font></div></td> <td width="7"><div><font style="font-face: Times New Roman" size="1" color="#000000"> </font></div></td> <td width="30"><div><font style="font-face: Times New Roman" size="1" color="#000000"> </font></div></td> <td width="6"><div><font style="font-face: Times New Roman" size="1" color="#000000"> </font></div></td> <td width="34"><div><font style="font-face: Times New Roman" size="1" color="#000000"> </font></div></td> <td width="7"><div><font style="font-face: Times New Roman" size="1" color="#000000"> </font></div></td> <td width="30"><div><font style="font-face: Times New Roman" size="1" color="#000000"> </font></div></td> <td width="6"><div><font style="font-face: Times New Roman" size="1" color="#000000"> </font></div></td> <td width="34"><div><font style="font-face: Times New Roman" size="1" color="#000000"> </font></div></td> <td width="7"><div><font style="font-face: Times New Roman" size="1" color="#000000"> </font></div></td> </tr> <tr> <td width="268" bgcolor="#cceeff"><div><font style="font-face: Times New Roman" size="2" color="#000000">Balance at June 26, 2011</font></div></td> <td width="30" bgcolor="#cceeff"><div><font style="font-face: Times New Roman" size="1" color="#000000">  </font></div></td> <td width="10" bgcolor="#cceeff"><div><font style="font-face: Times New Roman" size="2" color="#000000">$</font></div></td> <td width="52" bgcolor="#cceeff"><div align="right"><font style="font-face: Times New Roman" size="2" color="#000000">702</font></div></td> <td width="7" bgcolor="#cceeff"><div><font style="font-face: Times New Roman" size="2" color="#000000">  </font></div></td> <td width="30" bgcolor="#cceeff"><div><font style="font-face: Times New Roman" size="1" color="#000000"> </font></div></td> <td width="6" bgcolor="#cceeff"><div><font style="font-face: Times New Roman" size="2" color="#000000">$</font></div></td> <td width="34" bgcolor="#cceeff"><div align="right"><font style="font-face: Times New Roman" size="2" color="#000000">20</font></div></td> <td width="7" bgcolor="#cceeff"><div><font style="font-face: Times New Roman" size="2" color="#000000">  </font></div></td> <td width="30" bgcolor="#cceeff"><div><font style="font-face: Times New Roman" size="1" color="#000000"> </font></div></td> <td width="6" bgcolor="#cceeff"><div><font style="font-face: Times New Roman" size="2" color="#000000">$</font></div></td> <td width="34" bgcolor="#cceeff"><div align="right"><font style="font-face: Times New Roman" size="2" color="#000000">722</font></div></td> <td width="7" bgcolor="#cceeff"><div><font style="font-face: Times New Roman" size="2" color="#000000">  </font></div></td> </tr> <tr> <td width="268"><div> </div></td> <td width="30"><div><font style="font-face: Times New Roman" size="1" color="#000000">  </font></div></td> <td width="10"><div><font style="font-face: Times New Roman" size="1" color="#000000"> </font></div></td> <td width="52"><div><font style="font-face: Times New Roman" size="1" color="#000000"> </font></div></td> <td width="7"><div><font style="font-face: Times New Roman" size="1" color="#000000"> </font></div></td> <td width="30"><div><font style="font-face: Times New Roman" size="1" color="#000000"> </font></div></td> <td width="6"><div><font style="font-face: Times New Roman" size="1" color="#000000"> </font></div></td> <td width="34"><div><font style="font-face: Times New Roman" size="1" color="#000000"> </font></div></td> <td width="7"><div><font style="font-face: Times New Roman" size="1" color="#000000"> </font></div></td> <td width="30"><div><font style="font-face: Times New Roman" size="1" color="#000000"> </font></div></td> <td width="6"><div><font style="font-face: Times New Roman" size="1" color="#000000"> </font></div></td> <td width="34"><div><font style="font-face: Times New Roman" size="1" color="#000000"> </font></div></td> <td width="7"><div><font style="font-face: Times New Roman" size="1" color="#000000"> </font></div></td> </tr> </table> <div><font style="font-face: Times New Roman" size="2" color="#000000"> </font></div> <div><font style="font-face: Times New Roman" size="2" color="#000000"></font></div> <table border="0" cellspacing="0" cellpadding="0"> <tr> <td width="25"><div><font style="font-face: Times New Roman" size="1" color="#000000"><sup>(1)</sup> </font></div></td> <td width="605"><div><font style="font-face: Times New Roman" size="2" color="#000000">Other costs primarily included costs to consolidate operations. </font></div></td> </tr> </table> <div> </div> <div><font style="font-face: Times New Roman" size="3" color="#000000"></font></div> <table border="0" cellspacing="0" cellpadding="0"> <tr> <td width="25"><div><font style="font-face: Times New Roman" size="1" color="#000000"><sup>(2)</sup> </font></div></td> <td width="605"><div><font style="font-face: Times New Roman" size="2" color="#000000">Included are amounts that were initially recognized in integration and reorganization and were subsequently reclassified to discontinued operations expense at the time the operations ceased. </font></div></td> </tr> </table> <div><font style="font-face: Times New Roman" size="2" color="#000000">The restructuring reserve balance as of June 26, 2011, for all programs was $722, which is expected to be paid out over the next twelve months. </font></div> <div><font style="font-face: Times New Roman" size="3" color="#000000"></font><font style="font-face: Times New Roman" size="2" color="#000000">The following table summarizes the costs incurred and cash paid in connection with these restructuring programs for the three and six months ended June 26, 2011 and June 30, 2010. </font></div> <div><font style="font-face: Times New Roman" size="3" color="#000000"></font><font style="font-face: Times New Roman" size="2" color="#000000"> </font></div> <div><font style="font-face: Times New Roman" size="2" color="#000000"></font></div> <table border="0" cellspacing="0" cellpadding="0"> <tr> <td width="188"><div> </div></td> <td width="31"><div> </div></td> <td width="9"><div> </div></td> <td width="49"><div> </div></td> <td width="7"><div> </div></td> <td width="31"><div> </div></td> <td width="12"><div> </div></td> <td width="46"><div> </div></td> <td width="7"><div> </div></td> <td width="31"><div> </div></td> <td width="9"><div> </div></td> <td width="49"><div> </div></td> <td width="7"><div> </div></td> <td width="31"><div> </div></td> <td width="9"><div> </div></td> <td width="49"><div> </div></td> <td width="7"><div> </div></td> </tr> <tr> <td width="188"><div><font style="font-face: Times New Roman" size="1" color="#000000"> </font></div></td> <td width="31"><div><font style="font-face: Times New Roman" size="1" color="#000000">  </font></div></td> <td colspan="6" width="156"><div align="center"><font style="font-face: Times New Roman" size="1" color="#000000"><b>Three Months Ended</b></font></div></td> <td width="7"><div><font style="font-face: Times New Roman" size="1" color="#000000"> </font></div></td> <td width="31"><div><font style="font-face: Times New Roman" size="1" color="#000000"> </font></div></td> <td colspan="6" width="156"><div align="center"><font style="font-face: Times New Roman" size="1" color="#000000"><b>Six Months Ended</b></font></div></td> <td width="7"><div><font style="font-face: Times New Roman" size="1" color="#000000"> </font></div></td> </tr> <tr> <td width="188"><div><font style="font-face: Times New Roman" size="1" color="#000000"> </font></div></td> <td width="31"><div><font style="font-face: Times New Roman" size="1" color="#000000">  </font></div></td> <td colspan="2" width="58"><div align="center"><font style="font-face: Times New Roman" size="1" color="#000000"><b>June 26, 2011</b></font></div></td> <td width="7"><div><font style="font-face: Times New Roman" size="1" color="#000000"> </font></div></td> <td width="31"><div><font style="font-face: Times New Roman" size="1" color="#000000"> </font></div></td> <td colspan="2" width="58"><div align="center"><font style="font-face: Times New Roman" size="1" color="#000000"><b>June 30, 2010</b></font></div></td> <td width="7"><div><font style="font-face: Times New Roman" size="1" color="#000000"> </font></div></td> <td width="31"><div><font style="font-face: Times New Roman" size="1" color="#000000"> </font></div></td> <td colspan="2" width="58"><div align="center"><font style="font-face: Times New Roman" size="1" color="#000000"><b>June 26, 2011</b></font></div></td> <td width="7"><div><font style="font-face: Times New Roman" size="1" color="#000000"> </font></div></td> <td width="31"><div><font style="font-face: Times New Roman" size="1" color="#000000"> </font></div></td> <td colspan="2" width="58"><div align="center"><font style="font-face: Times New Roman" size="1" color="#000000"><b>June 30, 2010</b></font></div></td> <td width="7"><div><font style="font-face: Times New Roman" size="1" color="#000000"> </font></div></td> </tr> <tr> <td width="188" bgcolor="#cceeff"><div><font style="font-face: Times New Roman" size="2" color="#000000">Severance and related costs </font><font style="font-face: Times New Roman" size="1" color="#000000"><sup>(2)</sup></font></div></td> <td width="31" bgcolor="#cceeff"><div><font style="font-face: Times New Roman" size="1" color="#000000">  </font></div></td> <td width="9" bgcolor="#cceeff"><div><font style="font-face: Times New Roman" size="2" color="#000000">$</font></div></td> <td width="49" bgcolor="#cceeff"><div align="right"><font style="font-face: Times New Roman" size="2" color="#000000">504</font></div></td> <td width="7" bgcolor="#cceeff"><div><font style="font-face: Times New Roman" size="2" color="#000000">  </font></div></td> <td width="31" bgcolor="#cceeff"><div><font style="font-face: Times New Roman" size="1" color="#000000"> </font></div></td> <td width="12" bgcolor="#cceeff"><div><font style="font-face: Times New Roman" size="2" color="#000000">$</font></div></td> <td width="46" bgcolor="#cceeff"><div align="right"><font style="font-face: Times New Roman" size="2" color="#000000">215</font></div></td> <td width="7" bgcolor="#cceeff"><div><font style="font-face: Times New Roman" size="2" color="#000000">  </font></div></td> <td width="31" bgcolor="#cceeff"><div><font style="font-face: Times New Roman" size="1" color="#000000"> </font></div></td> <td width="9" bgcolor="#cceeff"><div><font style="font-face: Times New Roman" size="2" color="#000000">$</font></div></td> <td width="49" bgcolor="#cceeff"><div align="right"><font style="font-face: Times New Roman" size="2" color="#000000">1,812</font></div></td> <td width="7" bgcolor="#cceeff"><div><font style="font-face: Times New Roman" size="2" color="#000000">  </font></div></td> <td width="31" bgcolor="#cceeff"><div><font style="font-face: Times New Roman" size="1" color="#000000"> </font></div></td> <td width="9" bgcolor="#cceeff"><div><font style="font-face: Times New Roman" size="2" color="#000000">$</font></div></td> <td width="49" bgcolor="#cceeff"><div align="right"><font style="font-face: Times New Roman" size="2" color="#000000">614</font></div></td> <td width="7" bgcolor="#cceeff"><div><font style="font-face: Times New Roman" size="2" color="#000000">  </font></div></td> </tr> <tr> <td width="188"><div><font style="font-face: Times New Roman" size="2" color="#000000">Other costs </font><font style="font-face: Times New Roman" size="1" color="#000000"><sup>(1) (2)</sup></font></div></td> <td width="31"><div><font style="font-face: Times New Roman" size="1" color="#000000">  </font></div></td> <td width="9"><div><font style="font-face: Times New Roman" size="2" color="#000000"> </font></div></td> <td width="49"><div align="right"><font style="font-face: Times New Roman" size="2" color="#000000">118</font></div></td> <td width="7"><div><font style="font-face: Times New Roman" size="2" color="#000000">  </font></div></td> <td width="31"><div><font style="font-face: Times New Roman" size="1" color="#000000"> </font></div></td> <td width="12"><div><font style="font-face: Times New Roman" size="2" color="#000000"> </font></div></td> <td width="46"><div align="right"><font style="font-face: Times New Roman" size="2" color="#000000">426</font></div></td> <td width="7"><div><font style="font-face: Times New Roman" size="2" color="#000000">  </font></div></td> <td width="31"><div><font style="font-face: Times New Roman" size="1" color="#000000"> </font></div></td> <td width="9"><div><font style="font-face: Times New Roman" size="2" color="#000000"> </font></div></td> <td width="49"><div align="right"><font style="font-face: Times New Roman" size="2" color="#000000">267</font></div></td> <td width="7"><div><font style="font-face: Times New Roman" size="2" color="#000000">  </font></div></td> <td width="31"><div><font style="font-face: Times New Roman" size="1" color="#000000"> </font></div></td> <td width="9"><div><font style="font-face: Times New Roman" size="2" color="#000000"> </font></div></td> <td width="49"><div align="right"><font style="font-face: Times New Roman" size="2" color="#000000">931</font></div></td> <td width="7"><div><font style="font-face: Times New Roman" size="2" color="#000000">  </font></div></td> </tr> <tr> <td width="188" bgcolor="#cceeff"><div><font style="font-face: Times New Roman" size="2" color="#000000">Cash payments</font></div></td> <td width="31" bgcolor="#cceeff"><div><font style="font-face: Times New Roman" size="1" color="#000000">  </font></div></td> <td width="9" bgcolor="#cceeff"><div><font style="font-face: Times New Roman" size="2" color="#000000"> </font></div></td> <td width="49" bgcolor="#cceeff"><div align="right"><font style="font-face: Times New Roman" size="2" color="#000000">(1,171</font></div></td> <td width="7" bgcolor="#cceeff"><div><font style="font-face: Times New Roman" size="2" color="#000000">) </font></div></td> <td width="31" bgcolor="#cceeff"><div><font style="font-face: Times New Roman" size="1" color="#000000"> </font></div></td> <td width="12" bgcolor="#cceeff"><div><font style="font-face: Times New Roman" size="2" color="#000000"> </font></div></td> <td width="46" bgcolor="#cceeff"><div align="right"><font style="font-face: Times New Roman" size="2" color="#000000">(808</font></div></td> <td width="7" bgcolor="#cceeff"><div><font style="font-face: Times New Roman" size="2" color="#000000">) </font></div></td> <td width="31" bgcolor="#cceeff"><div><font style="font-face: Times New Roman" size="1" color="#000000"> </font></div></td> <td width="9" bgcolor="#cceeff"><div><font style="font-face: Times New Roman" size="2" color="#000000"> </font></div></td> <td width="49" bgcolor="#cceeff"><div align="right"><font style="font-face: Times New Roman" size="2" color="#000000">(1,611</font></div></td> <td width="7" bgcolor="#cceeff"><div><font style="font-face: Times New Roman" size="2" color="#000000">) </font></div></td> <td width="31" bgcolor="#cceeff"><div><font style="font-face: Times New Roman" size="1" color="#000000"> </font></div></td> <td width="9" bgcolor="#cceeff"><div><font style="font-face: Times New Roman" size="2" color="#000000"> </font></div></td> <td width="49" bgcolor="#cceeff"><div align="right"><font style="font-face: Times New Roman" size="2" color="#000000">(1,647</font></div></td> <td width="7" bgcolor="#cceeff"><div><font style="font-face: Times New Roman" size="2" color="#000000">) </font></div></td> </tr> </table> <div><font style="font-face: Times New Roman" size="2" color="#000000"> </font></div> <div><font style="font-face: Times New Roman" size="2" color="#000000"></font></div> <table border="0" cellspacing="0" cellpadding="0"> <tr> <td width="25"><div><font style="font-face: Times New Roman" size="1" color="#000000"><sup>(1)</sup> </font></div></td> <td width="605"><div><font style="font-face: Times New Roman" size="2" color="#000000">Other costs primarily included costs to consolidate operations. </font></div></td> </tr> </table> <div> </div> <div><font style="font-face: Times New Roman" size="3" color="#000000"></font></div> <table border="0" cellspacing="0" cellpadding="0"> <tr> <td width="25"><div><font style="font-face: Times New Roman" size="1" color="#000000"><sup>(2)</sup> </font></div></td> <td width="605"><div><font style="font-face: Times New Roman" size="2" color="#000000">Included are amounts that were initially recognized in integration and reorganization and were subsequently reclassified to discontinued operations expense at the time the operations ceased. </font></div></td> </tr> </table> <div><font style="font-face: Times New Roman" size="2" color="#000000">Additionally, during the three months ended June 26, 2011, the Company recognized an impairment charge of $1,696 related to the consolidation of its print operations, refer to Note 12 for fair value measurement discussion. </font></div> <div><font style="font-face: Times New Roman" size="3" color="#000000"></font></div> <table border="0" cellspacing="0" cellpadding="0"> <tr> <td width="25"><div> </div></td> <td width="605"><div> </div></td> </tr> </table> <div> </div> <div><font style="font-face: Times New Roman" size="3" color="#000000"></font></div>

<div><font style="font-face: Times New Roman" size="2" color="#000000"><b>(3) Reclassifications </b></font></div> <div><font style="font-face: Times New Roman" size="3" color="#000000"></font><font style="font-face: Times New Roman" size="2" color="#000000">Certain amounts in the prior period unaudited condensed consolidated financial statements have been reclassified to conform to the 2011 presentation. </font></div> <div><font style="font-face: Times New Roman" size="3" color="#000000"></font></div>

<div><font style="font-face: Times New Roman" size="2" color="#000000"><b>(2) Share-Based Compensation </b></font></div> <div><font style="font-face: Times New Roman" size="3" color="#000000"></font><font style="font-face: Times New Roman" size="2" color="#000000">The Company recognized compensation cost for share-based payments of $195, $456, $451 and $917 during the three and six months ended June 26, 2011 and June 30, 2010, respectively. The total compensation cost not yet recognized related to non-vested awards as of June 26, 2011 was $107, which is expected to be recognized over a weighted average period of 1.9 years through April 2013. </font></div> <div><font style="font-face: Times New Roman" size="3" color="#000000"></font><font style="font-face: Times New Roman" size="2" color="#000000"><i><b>Restricted Share Grants (RSGs) </b></i></font></div> <div><font style="font-face: Times New Roman" size="3" color="#000000"></font><font style="font-face: Times New Roman" size="2" color="#000000">Prior to the Company's IPO in 2006, the Company had issued 792,500 RSGs to certain management investors pursuant to each individual management stockholder agreement (each, a Management Stockholder Agreement). Under the Management Stockholder Agreements, RSGs vest by one-third on each of the third, fourth and fifth anniversaries from the grant date. Following the adoption of the GateHouse Media, Inc. Omnibus Stock Incentive Plan (the Plan) in October 2006, an additional 268,680 RSGs were granted during the year ended December 31, 2006 to Company directors, management, and employees. During the year ended December 31, 2007 an additional 198,846 RSGs were granted to Company directors, management and employees, 105,453 of which were both granted and forfeited. During the year ended December 31, 2008 an additional 266,795 RSGs were granted to Company directors, management and employees, 42,535 of which were both granted and forfeited. During the year ended December 31, 2009 an additional 100,000 RSGs were granted to Company management. The majority of the RSGs issued under the Plan vest in increments of one-third on each of the first, second and third anniversaries of the grant date. In the event a grantee of an RSG is terminated by the Company without cause, a number of unvested RSGs immediately vest that would have vested under the normal vesting period on the next succeeding anniversary date following such termination. In the event an RSG grantee's employment with the Company is terminated without cause within twelve months after a change in control as defined in the applicable award agreement, all unvested RSGs become immediately vested at the termination date. During the period prior to the lapse and removal of the vesting restrictions, a grantee of an RSG will have all of the rights of a stockholder, including without limitation, the right to vote and the right to receive all dividends or other distributions. As a result, the RSGs are reflected as outstanding common stock and the unvested RSGs have been excluded from the calculation of basic earnings per share. With respect to Company employees, the value of the RSGs on the date of issuance is recognized as employee compensation expense over the vesting period or through the grantee's eligible retirement date, if shorter, with an increase to additional paid-in-capital. </font></div> <div><font style="font-face: Times New Roman" size="3" color="#000000"></font><font style="font-face: Times New Roman" size="2" color="#000000">As of June 26, 2011 and June 30, 2010, there were 100,847 and 318,836 RSGs, respectively, issued and outstanding with a weighted average grant date fair value of $6.56 and $9.57, respectively. As of June 26, 2011, the aggregate intrinsic value of unvested RSGs was $12. During the six months ended June 26, 2011, the aggregate fair value of vested RSGs was $24. </font></div> <div><font style="font-face: Times New Roman" size="3" color="#000000"></font><font style="font-face: Times New Roman" size="2" color="#000000">RSG activity was as follows: </font></div> <div><font style="font-face: Times New Roman" size="3" color="#000000"></font><font style="font-face: Times New Roman" size="2" color="#000000"> </font></div> <div><font style="font-face: Times New Roman" size="2" color="#000000"></font></div> <table border="0" cellspacing="0" cellpadding="0"> <tr> <td width="226"><div> </div></td> <td width="41"><div> </div></td> <td width="4"><div> </div></td> <td width="69"><div> </div></td> <td width="7"><div> </div></td> <td width="41"><div> </div></td> <td width="14"><div> </div></td> <td width="66"><div> </div></td> <td width="6"><div> </div></td> </tr> <tr> <td width="226"><div><font style="font-face: Times New Roman" size="1" color="#000000"> </font></div></td> <td width="41"><div><font style="font-face: Times New Roman" size="1" color="#000000">  </font></div></td> <td colspan="2" width="74"><div align="center"><font style="font-face: Times New Roman" size="1" color="#000000"><b>Number of RSGs</b></font></div></td> <td width="7"><div><font style="font-face: Times New Roman" size="1" color="#000000"> </font></div></td> <td width="41"><div><font style="font-face: Times New Roman" size="1" color="#000000"> </font></div></td> <td colspan="2" width="80"><div align="center"><font style="font-face: Times New Roman" size="1" color="#000000"><b>Weighted-Average</b></font></div><div align="center"><font style="font-face: Times New Roman" size="1" color="#000000"><b>Grant Date </b></font></div><div align="center"><font style="font-face: Times New Roman" size="1" color="#000000"><b>Fair Value</b></font></div></td> <td width="6"><div><font style="font-face: Times New Roman" size="1" color="#000000"> </font></div></td> </tr> <tr> <td width="226" bgcolor="#cceeff"><div><font style="font-face: Times New Roman" size="2" color="#000000">Unvested at December 31, 2010</font></div></td> <td width="41" bgcolor="#cceeff"><div><font style="font-face: Times New Roman" size="1" color="#000000">  </font></div></td> <td width="4" bgcolor="#cceeff"><div><font style="font-face: Times New Roman" size="2" color="#000000"> </font></div></td> <td width="69" bgcolor="#cceeff"><div align="right"><font style="font-face: Times New Roman" size="2" color="#000000">299,560</font></div></td> <td width="7" bgcolor="#cceeff"><div><font style="font-face: Times New Roman" size="2" color="#000000">  </font></div></td> <td width="41" bgcolor="#cceeff"><div><font style="font-face: Times New Roman" size="1" color="#000000"> </font></div></td> <td width="14" bgcolor="#cceeff"><div><font style="font-face: Times New Roman" size="2" color="#000000">$</font></div></td> <td width="66" bgcolor="#cceeff"><div align="right"><font style="font-face: Times New Roman" size="2" color="#000000">8.89</font></div></td> <td width="6" bgcolor="#cceeff"><div><font style="font-face: Times New Roman" size="2" color="#000000">  </font></div></td> </tr> <tr> <td width="226"><div><font style="font-face: Times New Roman" size="2" color="#000000">Vested</font></div></td> <td width="41"><div><font style="font-face: Times New Roman" size="1" color="#000000">  </font></div></td> <td width="4"><div><font style="font-face: Times New Roman" size="2" color="#000000"> </font></div></td> <td width="69"><div align="right"><font style="font-face: Times New Roman" size="2" color="#000000">(198,713</font></div></td> <td width="7"><div><font style="font-face: Times New Roman" size="2" color="#000000">) </font></div></td> <td width="41"><div><font style="font-face: Times New Roman" size="1" color="#000000"> </font></div></td> <td width="14"><div><font style="font-face: Times New Roman" size="2" color="#000000"> </font></div></td> <td width="66"><div align="right"><font style="font-face: Times New Roman" size="2" color="#000000">10.07</font></div></td> <td width="6"><div><font style="font-face: Times New Roman" size="2" color="#000000">  </font></div></td> </tr> <tr> <td width="226"><div> </div></td> <td width="41"><div><font style="font-face: Times New Roman" size="1" color="#000000">  </font></div></td> <td width="4"><div><font style="font-face: Times New Roman" size="1" color="#000000"> </font></div></td> <td width="69"><div><font style="font-face: Times New Roman" size="1" color="#000000"> </font></div></td> <td width="7"><div><font style="font-face: Times New Roman" size="1" color="#000000"> </font></div></td> <td width="41"><div><font style="font-face: Times New Roman" size="1" color="#000000"> </font></div></td> <td width="14"><div> </div></td> <td width="66"><div> </div></td> <td width="6"><div> </div></td> </tr> <tr> <td width="226" bgcolor="#cceeff"><div><font style="font-face: Times New Roman" size="2" color="#000000">Unvested at June 26, 2011</font></div></td> <td width="41" bgcolor="#cceeff"><div><font style="font-face: Times New Roman" size="1" color="#000000">  </font></div></td> <td width="4" bgcolor="#cceeff"><div><font style="font-face: Times New Roman" size="2" color="#000000"> </font></div></td> <td width="69" bgcolor="#cceeff"><div align="right"><font style="font-face: Times New Roman" size="2" color="#000000">100,847</font></div></td> <td width="7" bgcolor="#cceeff"><div><font style="font-face: Times New Roman" size="2" color="#000000">  </font></div></td> <td width="41" bgcolor="#cceeff"><div><font style="font-face: Times New Roman" size="1" color="#000000"> </font></div></td> <td width="14" bgcolor="#cceeff"><div><font style="font-face: Times New Roman" size="2" color="#000000">$</font></div></td> <td width="66" bgcolor="#cceeff"><div align="right"><font style="font-face: Times New Roman" size="2" color="#000000">6.56</font></div></td> <td width="6" bgcolor="#cceeff"><div><font style="font-face: Times New Roman" size="2" color="#000000">  </font></div></td> </tr> <tr> <td width="226"><div> </div></td> <td width="41"><div><font style="font-face: Times New Roman" size="1" color="#000000">  </font></div></td> <td width="4"><div><font style="font-face: Times New Roman" size="1" color="#000000"> </font></div></td> <td width="69"><div><font style="font-face: Times New Roman" size="1" color="#000000"> </font></div></td> <td width="7"><div><font style="font-face: Times New Roman" size="1" color="#000000"> </font></div></td> <td width="41"><div><font style="font-face: Times New Roman" size="1" color="#000000"> </font></div></td> <td width="14"><div> </div></td> <td width="66"><div> </div></td> <td width="6"><div> </div></td> </tr> </table> <div><font style="font-face: Times New Roman" size="2" color="#000000">FASB ASC Topic 718, <i>Compensation - Stock Compensation</i>, requires the recognition of share-based compensation for the number of awards that are ultimately expected to vest. The Company's estimated forfeitures are based on forfeiture rates of comparable plans. Estimated forfeitures are reassessed periodically and the estimate may change based on new facts and circumstances.   </font></div> <div><font style="font-face: Times New Roman" size="3" color="#000000"></font></div>

<div><font style="font-face: Times New Roman" size="2" color="#000000"><b>(1) Unaudited Financial Statements </b></font></div> <div><font style="font-face: Times New Roman" size="3" color="#000000"></font><font style="font-face: Times New Roman" size="2" color="#000000">The accompanying unaudited condensed consolidated financial statements of GateHouse Media, Inc. and its subsidiaries (the Company) have been prepared in accordance with U.S. generally accepted accounting principles (GAAP) for interim financial information and the instructions to Form 10-Q and applicable provisions of Regulation S-X, each as promulgated by the Securities and Exchange Commission (the SEC). Certain information and note disclosures normally included in comprehensive annual financial statements presented in accordance with GAAP have generally been condensed or omitted pursuant to SEC rules and regulations. </font></div> <div><font style="font-face: Times New Roman" size="3" color="#000000"></font><font style="font-face: Times New Roman" size="2" color="#000000">Management believes that the accompanying condensed consolidated financial statements contain all adjustments (which include normal recurring adjustments) that, in the opinion of management, are necessary to present fairly the Company's consolidated financial condition, results of operations and cash flows for the periods presented. The results of operations for interim periods are not necessarily indicative of the results that may be expected for the full year. These condensed consolidated financial statements should be read in conjunction with the audited consolidated financial statements and accompanying notes for the year ended December 31, 2010, included in the Company's Annual Report on Form 10-K. </font></div> <div><font style="font-face: Times New Roman" size="3" color="#000000"></font><font style="font-face: Times New Roman" size="2" color="#000000">The preparation of financial statements in conformity with GAAP requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities and disclosure of contingent assets and liabilities at the date of the financial statements and the reported amounts of revenues and expenses during the reporting period. Actual results could differ from those estimates. </font></div> <div><font style="font-face: Times New Roman" size="3" color="#000000"></font><font style="font-face: Times New Roman" size="2" color="#000000">Total comprehensive loss for the three months ended June 26, 2011 and June 30, 2010 was $10,676 and $11,681, respectively. Total comprehensive loss for the six months ended June 26, 2011 and June 30, 2010 was $21,006 and $42,455, respectively. </font></div> <div><font style="font-face: Times New Roman" size="3" color="#000000"></font><font style="font-face: Times New Roman" size="2" color="#000000">Prior to 2011, the Company's fiscal year ended on December 31. Effective January 1, 2011, the Company's fiscal year changed to a 52 week operating year ending on the Sunday closest to December 31. For the first half of 2011 a portion of the business had only 177 days of operations compared to 181 in the first half of 2010. </font></div> <div><font style="font-face: Times New Roman" size="3" color="#000000"></font><font style="font-face: Times New Roman" size="2" color="#000000"><i><b>Recent Developments </b></i></font></div> <div><font style="font-face: Times New Roman" size="3" color="#000000"></font><font style="font-face: Times New Roman" size="2" color="#000000">The newspaper industry and the Company have experienced declining same store revenue over the past several years. While these trends are stabilizing, it has eliminated the availability to the Company of additional borrowings under its 2007 Credit Facility. As a result, the Company previously implemented plans to reduce costs and preserve cash flow. This includes the suspension of the payment of cash dividends, the continued implementation of cost reduction programs, and the sale of non-core assets. The Company believes these initiatives will provide the financial resources necessary to invest in the business and ensure its future success and provide sufficient cash flow to enable its to meet its commitments for the next year. </font></div> <div><font style="font-face: Times New Roman" size="3" color="#000000"></font><font style="font-face: Times New Roman" size="2" color="#000000"><i><b>Recently Issued Accounting Pronouncements </b></i></font></div> <div><font style="font-face: Times New Roman" size="3" color="#000000"></font><font style="font-face: Times New Roman" size="2" color="#000000">In May 2011, the Financial Accounting Standard Board (FASB) issued Accounting Standards Update (ASU) 2011-04, Fair Value Measurement: Amendments to Achieve Common Fair Value Measurement and Disclosure Requirements in GAAP and IFRS, which amends Accounting Standards Codification (ASC) Topic 820. ASU No. 2011-04 amends the ASC to clarify some existing concepts, eliminates wording differences between GAAP and International Financial Reporting Standards (IFRS) and changes some principles to achieve consistency between GAAP and IFRS. ASU 2011-04 also expands the existing disclosures for fair value measurements that are estimated using significant unobservable (Level 3) inputs. The changes to the ASC as a result of this update is effective for annual and interim reporting periods beginning after December 15, 2011 (January 2, 2012 for the Company). The adoption of ASU No. 2011-04 will not have a material effect on the Company's Condensed Consolidated Financial Statements. </font></div> <div><font style="font-face: Times New Roman" size="3" color="#000000"></font><font style="font-face: Times New Roman" size="2" color="#000000">In June 2011, the FASB issued guidance as ASU No. 2011-05 Comprehensive Income which amends ASC 220. ASU No. 2011-05 amends the ASC to require the presentation of total comprehensive income, the components of net income, and the components of other comprehensive income in a single continuous statement or in two separate but continuous statements. This update eliminates the option of reporting other comprehensive income as part of the statement of changes in stockholders' equity. The changes to the ASC as a result of this update is effective for annual and interim reporting periods beginning after December 15, 2011 (January 2, 2012 for the Company). The adoption of ASU No. 2011-05 will not have a material effect on the Company's Condensed Consolidated Financial Statements. </font></div> <div><font style="font-face: Times New Roman" size="3" color="#000000"></font></div>