Monday, March 29, 2010

What does Post-Dispatch contract mean for Lee?

In its latest SEC statement, Lee Enterprises says the St. Louis Post-Dispatch contract with the St. Louis Newspaper Guild will save the company more than $30 million over the next five years.

"The Company estimates the contract changes will result in non-cash curtailment gains totaling $14,000,000, which will be recognized in March 2010, and are expected to further reduce operating expenses for the six months ending September 2010 by $1,300,000 and by an average of $1,800,000 on an annual basis over the life of the contract. The Company’s post retirement medical benefit and pension obligations will be reduced by approximately $6,500,000 and $2,000,000, respectively, in March 2010. Curtailment gains and changes in benefit obligations are subject to final actuarial calculations."

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