Cover Page
Cover Page - USD ($) | 12 Months Ended | ||
Sep. 25, 2022 | Feb. 22, 2023 | Mar. 31, 2022 | |
Cover [Abstract] | |||
Document Type | 10-K | ||
Document Annual Report | true | ||
Document Period End Date | Sep. 25, 2022 | ||
Current Fiscal Year End Date | --09-25 | ||
Document Transition Report | false | ||
Entity File Number | 1-6227 | ||
Entity Registrant Name | LEE ENTERPRISES, INC | ||
Entity Incorporation, State or Country Code | DE | ||
Entity Tax Identification Number | 42-0823980 | ||
Entity Address, Address Line One | 4600 E 53rd Street | ||
Entity Address, City or Town | Davenport | ||
Entity Address, State or Province | IA | ||
Entity Address, Postal Zip Code | 52807 | ||
City Area Code | 563 | ||
Local Phone Number | 383-2100 | ||
Title of 12(b) Security | Common Stock - $0.01 par value | ||
Trading Symbol | LEE | ||
Security Exchange Name | NASDAQ | ||
Entity Well-known Seasoned Issuer | No | ||
Entity Voluntary Filers | No | ||
Entity Current Reporting Status | Yes | ||
Entity Interactive Data Current | Yes | ||
Entity Filer Category | Accelerated Filer | ||
Entity Small Business | true | ||
Entity Emerging Growth Company | false | ||
ICFR Auditor Attestation Flag | true | ||
Entity Shell Company | false | ||
Entity Public Float | $ 150,009,735 | ||
Entity Common Stock, Shares Outstanding | 6,039,856 | ||
Entity Central Index Key | 0000058361 | ||
Document Fiscal Year Focus | 2022 | ||
Document Fiscal Period Focus | FY | ||
Amendment Flag | false |
Audit Information
Audit Information | 12 Months Ended | |
Sep. 25, 2022 | Sep. 26, 2021 | |
Auditor Information [Abstract] | ||
Auditor Name | BDO USA, LLP | KPMG LLP |
Auditor Location | Chicago, IL | Chicago, Illinoi |
Auditor Firm ID | 243 |
Consolidated Statements of Inco
Consolidated Statements of Income (Loss) and Comprehensive Income (Loss) - USD ($) $ in Thousands | 12 Months Ended | ||
Sep. 25, 2022 | Sep. 26, 2021 | Sep. 27, 2020 | |
Operating revenue: | |||
Operating revenue | $ 780,969 | $ 794,649 | $ 618,004 |
Operating expenses: | |||
Compensation | 317,789 | 330,896 | 243,023 |
Newsprint and ink | 30,101 | 29,775 | 24,243 |
Other operating expenses | 344,905 | 325,597 | 259,382 |
Depreciation and amortization | 36,544 | 42,841 | 36,133 |
Assets loss (gain) on sales, impairments and other | 9,716 | 8,214 | (5,403) |
Restructuring costs and other | 22,720 | 7,182 | 13,751 |
Total operating expenses | 761,775 | 744,505 | 571,129 |
Equity in earnings of associated companies | 5,657 | 6,412 | 3,403 |
Operating income | 24,851 | 56,556 | 50,278 |
Non-operating income (expense): | |||
Interest expense | (41,770) | (44,773) | (47,743) |
Debt financing and administrative costs | 0 | 0 | (11,966) |
Curtailment gain | 1,027 | 23,830 | 0 |
Pension withdrawal cost | (2,335) | (12,862) | 0 |
Pension and OPEB related benefit (cost) and other, net | 19,022 | 9,296 | 12,274 |
Total non-operating expense, net | (24,056) | (24,509) | (47,435) |
Income before income taxes | 795 | 32,047 | 2,843 |
Income tax expense | 698 | 7,255 | 2,973 |
Net Income (loss) | 97 | 24,792 | (130) |
Net income attributable to non-controlling interests | (2,114) | (2,047) | (1,845) |
(Loss) income attributable to Lee Enterprises, Incorporated | (2,017) | 22,745 | (1,975) |
Other comprehensive (loss) income, net of income taxes | (25,534) | 62,237 | 9,064 |
Comprehensive (loss) income attributable to Lee Enterprises, Incorporated | $ (27,551) | $ 84,982 | $ 7,089 |
Earnings (loss) per common share: | |||
Basic (in dollars per share) | $ (0.35) | $ 3.98 | $ (0.35) |
Diluted (in dollars per share) | $ (0.35) | $ 3.90 | $ (0.35) |
Advertising and marketing services | |||
Operating revenue: | |||
Operating revenue | $ 366,428 | $ 369,283 | $ 289,655 |
Subscription | |||
Operating revenue: | |||
Operating revenue | 353,624 | 357,713 | 268,285 |
Other | |||
Operating revenue: | |||
Operating revenue | $ 60,917 | $ 67,653 | $ 60,064 |
Consolidated Balance Sheets
Consolidated Balance Sheets - USD ($) $ in Thousands | Sep. 25, 2022 | Sep. 26, 2021 |
Current assets: | ||
Cash and cash equivalents | $ 16,185 | $ 26,112 |
Accounts receivable, less allowance for credit losses: 2022 $5,237; 2021 $6,574 | 69,522 | 65,070 |
Inventories | 8,265 | 6,297 |
Prepaids and other | 15,151 | 11,320 |
Total current assets | 109,123 | 108,799 |
Investments: | ||
Associated companies | 27,378 | 26,682 |
Other | 5,971 | 6,065 |
Total investments | 33,349 | 32,747 |
Property and equipment: | ||
Land and improvements | 14,505 | 16,576 |
Buildings and improvements | 95,111 | 106,890 |
Equipment | 215,731 | 228,817 |
Construction in process | 1,449 | 2,813 |
Property and equipment, gross | 326,796 | 355,096 |
Less accumulated depreciation | 253,083 | 271,830 |
Property and equipment, net | 73,713 | 83,266 |
Operating lease right-of-use assets | 47,490 | 65,682 |
Goodwill | 329,504 | 330,204 |
Other intangible assets, net | 121,373 | 156,671 |
Other | 9,896 | 13,632 |
Total assets | 744,042 | 843,551 |
Current liabilities: | ||
Current portion of lease liabilities | 7,859 | 8,612 |
Current maturities of long-term debt | 0 | 6,112 |
Accounts payable | 28,608 | 20,420 |
Compensation and other accrued liabilities | 44,740 | 45,076 |
Unearned revenue | 49,929 | 61,404 |
Total current liabilities | 131,136 | 141,624 |
Long-term debt, net of current maturities | 462,554 | 476,504 |
Operating lease liabilities | 46,003 | 57,683 |
Pension obligations | 966 | 22,444 |
Postretirement and postemployment benefit obligations | 9,221 | 11,008 |
Deferred income taxes | 42,719 | 53,763 |
Income taxes payable | 8,292 | 9,174 |
Withdrawal liabilities and other | 25,914 | 28,121 |
Total liabilities | 726,805 | 800,321 |
Stockholders' equity: | ||
Serial convertible preferred stock, no par value; authorized 500 shares; none issued | 0 | 0 |
Additional paid-in capital | 259,521 | 258,063 |
Accumulated deficit | (261,229) | (259,212) |
Accumulated other comprehensive income | 16,653 | 42,187 |
Total stockholders' equity | 15,005 | 41,097 |
Non-controlling interests | 2,232 | 2,133 |
Total equity | 17,237 | 43,230 |
Total liabilities and equity | 744,042 | 843,551 |
Pension Plan | ||
Property and equipment: | ||
Non-current assets | 528 | 35,855 |
Postretirement Health Coverage | ||
Property and equipment: | ||
Non-current assets | 19,066 | 16,695 |
Common Class A | ||
Stockholders' equity: | ||
Common stock | 60 | 59 |
Common Class B | ||
Stockholders' equity: | ||
Common stock | $ 0 | $ 0 |
Consolidated Balance Sheets (Pa
Consolidated Balance Sheets (Parentheticals) - USD ($) shares in Thousands, $ in Thousands | Sep. 25, 2022 | Sep. 26, 2021 |
Accounts receivable, allowance for credit loss | $ 5,237 | $ 6,574 |
Preferred stock, par value (in dollars per share) | $ 0 | $ 0 |
Preferred stock, shares authorized | 500 | 500 |
Preferred stock, shares issued | 0 | 0 |
Common Class A | ||
Common stock, shares authorized | 12,000 | 12,000 |
Common stock, par value (in dollars per share) | $ 0.01 | $ 0.01 |
Common stock, shares issued | 5,979 | 5,889 |
Common stock, shares outstanding | 5,979 | 5,889 |
Common Class B | ||
Common stock, shares authorized | 3,000 | 3,000 |
Common stock, par value (in dollars per share) | $ 2 | $ 2 |
Common stock, shares issued | 0 | 0 |
Consolidated Statements of Stoc
Consolidated Statements of Stockholders' Equity (Deficit) - USD ($) shares in Thousands, $ in Thousands | Total | As previously reported | Adjustment | Common Stock | Additional Paid-in Capital | Accumulated deficit | Accumulated deficit As previously reported | Accumulated deficit Adjustment | Accumulated other comprehensive income (loss) |
Beginning Balance at Sep. 29, 2019 | $ 58 | $ 256,002 | $ (279,982) | $ (265,423) | $ (14,559) | $ (29,114) | |||
Beginning Balance (in shares) at Sep. 29, 2019 | 5,765 | ||||||||
Increase (Decrease) in Stockholders' Equity [Roll Forward] | |||||||||
Shares (redeemed) issued | $ 0 | (87) | |||||||
Shares issued (in shares) | 70 | ||||||||
Stock compensation | 1,042 | ||||||||
Net income (loss) | $ (130) | $ (1,261) | $ 1,131 | (130) | (1,261) | 1,131 | |||
Net income attributable to non-controlling interests | (1,845) | (1,845) | |||||||
Change in pension and postretirement benefits | 11,464 | ||||||||
Deferred income taxes, net | (2,400) | ||||||||
Ending Balance at Sep. 27, 2020 | $ (44,992) | (31,564) | (13,428) | $ 58 | 256,957 | (281,957) | (268,529) | (13,428) | (20,050) |
Ending Balance (in shares) at Sep. 27, 2020 | 5,835 | 5,835 | |||||||
Increase (Decrease) in Stockholders' Equity [Roll Forward] | |||||||||
Shares (redeemed) issued | $ 1 | 252 | |||||||
Shares issued (in shares) | 54 | ||||||||
Stock compensation | 854 | ||||||||
Net income (loss) | $ 24,792 | 24,832 | (40) | 24,792 | 24,832 | (40) | |||
Net income attributable to non-controlling interests | (2,047) | (2,047) | |||||||
Change in pension and postretirement benefits | 82,204 | ||||||||
Deferred income taxes, net | (19,967) | ||||||||
Ending Balance at Sep. 26, 2021 | $ 41,097 | $ 54,565 | $ (13,468) | $ 59 | 258,063 | (259,212) | $ (245,744) | $ (13,468) | 42,187 |
Ending Balance (in shares) at Sep. 26, 2021 | 5,889 | 5,889 | |||||||
Increase (Decrease) in Stockholders' Equity [Roll Forward] | |||||||||
Shares (redeemed) issued | $ 1 | (29) | |||||||
Shares issued (in shares) | 90 | ||||||||
Stock compensation | 1,487 | ||||||||
Net income (loss) | $ 97 | 97 | |||||||
Net income attributable to non-controlling interests | (2,114) | (2,114) | |||||||
Change in pension and postretirement benefits | (32,202) | ||||||||
Deferred income taxes, net | 6,668 | ||||||||
Ending Balance at Sep. 25, 2022 | $ 15,005 | $ 60 | $ 259,521 | $ (261,229) | $ 16,653 | ||||
Ending Balance (in shares) at Sep. 25, 2022 | 5,979 | 5,979 |
Consolidated Statements of Cash
Consolidated Statements of Cash Flows - USD ($) $ in Thousands | 12 Months Ended | 24 Months Ended | ||
Sep. 25, 2022 | Sep. 26, 2021 | Sep. 27, 2020 | Sep. 26, 2021 | |
Cash provided by operating activities: | ||||
Net income (loss) | $ 97 | $ 24,792 | $ (130) | |
Adjustments to reconcile net income (loss) to net cash provided by operating activities: | ||||
Depreciation and amortization | 36,544 | 42,841 | 36,133 | |
Curtailment gain | (1,027) | (23,830) | 0 | |
Pension withdrawal cost | 2,335 | 12,862 | 0 | |
Stock compensation expense | 1,337 | 854 | 1,294 | |
Asset loss (gain) on sales, impairments and other, net | 9,716 | 8,214 | (5,403) | |
Deferred income taxes | (4,377) | 5,160 | (4,691) | |
Debt financing and administrative costs | 0 | 0 | 11,966 | |
Pension contributions | (112) | (965) | (6,215) | |
Return of collateral on (Payments to collateralize) letters of credit | 2,451 | 1,686 | (11,502) | |
Other, net | (2,015) | (1,253) | 319 | |
Changes in operating assets and liabilities, net of acquisitions: | ||||
(Increase) Decrease in receivables and contract sales | (2,614) | (12,472) | 26,908 | |
(Increase) Decrease in inventories and other | (3,088) | 1,237 | 2,724 | |
(Decrease) increase in accounts payable, unearned revenue and other accrued liabilities | (14,645) | 4,731 | (8,341) | |
(Decrease) increase in pension, postretirement and postemployment benefit obligations | (21,449) | (2,667) | (2,950) | |
Change in income taxes payable | (236) | (8,418) | 7,123 | |
Other | 512 | (2,694) | 2,634 | |
Net cash provided by operating activities | 3,429 | 50,078 | 49,869 | |
Cash provided by (required for) investing activities: | ||||
Purchases of property and equipment | (7,536) | (7,479) | (8,096) | |
Proceeds from sales of assets | 14,835 | 4,616 | 21,710 | |
Acquisitions, net of cash acquired | 0 | 0 | (130,985) | |
Distributions greater (less) than earnings of TNI and MNI | (576) | 1,038 | (329) | |
Other, net | (386) | (453) | (476) | |
Net cash provided by (required for) investing activities | 6,337 | (2,278) | (118,176) | |
Cash (required for) provided by financing activities: | ||||
Proceeds from long-term debt | 0 | 0 | 576,000 | |
Payments on long-term debt | 0 | 0 | (443,627) | |
Principal payments on long-term borrowings | (20,062) | (55,674) | (37,710) | |
Debt financing and administrative costs paid | 0 | 0 | (684) | |
Sale (purchases) of common stock transactions | 369 | 253 | (584) | |
Net cash (required for) provided by financing activities | (19,693) | (55,421) | 93,395 | |
Net (decrease) increase in cash and cash equivalents | (9,927) | (7,621) | 25,088 | |
Cash and cash equivalents: | ||||
Beginning of year | 26,112 | 33,733 | 8,645 | $ 8,645 |
End of year | $ 16,185 | $ 26,112 | $ 33,733 | $ 26,112 |
Significant Accounting Policies
Significant Accounting Policies | 12 Months Ended |
Sep. 25, 2022 | |
Organization, Consolidation and Presentation of Financial Statements [Abstract] | |
Significant Accounting Policies | NOTES TO CONSOLIDATED FINANCIAL STATEMENTS References to "we", "our", "us" and the like throughout the Consolidated Financial Statements refer to Lee Enterprises, Incorporated and subsidiaries (the "Company"). Lee Enterprises, Incorporated is a leading provider of high quality, trusted, local news and information, and a major platform for advertising in the markets we serve. We operate 77 principally mid-sized local media operations (including TNI Partners ("TNI") and Madison Newspapers, Inc. ("MNI")) across 26 states. Basis of Presentation The Consolidated Financial Statements include our accounts and those of our subsidiaries, all of which are wholly-owned, except for our 50% interest in TNI, 50% interest in MNI and 82.5% interest in BLOX Digital. TNI and MNI are accounted for under the equity method. Results of BLOX Digital are consolidated. On March 16, 2020, the Company completed the acquisition of BH Media Group, Inc. and The Buffalo News, Inc. for a combined purchase price of $140,000,000 (collectively, the "Transactions"). Certain amounts in prior period Consolidated Financial Statements have been reclassified to conform to the current year presentation. Pursuant to our acquisition of BH Media and Buffalo News, we realigned the presentation of certain home delivery print revenue and certain other Subscription revenue from other revenue to subscription revenue on the Consolidated Statements of Income (loss) and Comprehensive Income (loss). As a result of this updated presentation, subscription revenue increased and other revenue decreased by $828,000 in 2021 and by $2,346,000 in 2020. Operating revenues, net income (loss), accumulated deficit, and earnings per share remain unchanged. In 2021 and 2020, we allocated revenue from our full access subscriptions between print and digital subscription revenues. In 2022, due to the increased prominence of digital-only revenues, we revised this presentation to classify full access subscriptions as print subscription revenue, and discretely present digital-only subscription revenues. 2021 and 2020 amounts were reclassified in Note 4 to conform to the current year presentation. Operating revenues, net income (loss), accumulated deficit, and earnings per share remain unchanged. On February 25, 2021, our Board of Directors declared a one-for-ten split of the Company's common stock (the "Reverse Stock Split"). Effective March 15, 2021 the Company's shares began trading on a post reverse split basis. Prior period results have been adjusted to reflect the Reverse Stock Split in March 2021. The split did not change the Company's Common Stock Par value but changed opening Common Stock and Additional Paid in Capital balances by offsetting amounts. During the year ended September 26, 2021 we identified an error related to pension contributions recorded incorrectly in the year ended September 27, 2020. The error was due to a directional issue whereby pension contributions were reported as operating cash inflows in the statement of cash flows instead of operating cash outflows. Recording this out of period adjustment had no impact to the Consolidated Statements of Income (loss) and Comprehensive Income (loss) for the 52 weeks ended September 26, 2021 and had no impact on the Consolidated Balance Sheet. The correction impacted the Consolidated Statement of Cash Flows. Pension contributions were corrected to a cash outflow of $6,215,000 and the change in pension, postretirement and postemployment benefit obligations have been corrected to a decrease of $2,950,000. Net cash provided by operating activities did not change. We did not believe the impact of the adjustment was material to our consolidated financial statements for any previously issued financial statements taken as a whole. Fiscal Year All of our enterprises use period accounting with the fiscal year ending on the last Sunday in September. References to "2022", "2021", "2020" and the like refer to the fiscal years ended the last Sunday in September. Fiscal years 2022, 2021, and 2020 include 52 weeks of operations. Accounting Estimates The preparation of financial statements in conformity with accounting principles generally accepted in the United States of America ("GAAP") requires us to make estimates and judgments that affect the reported amounts of assets, liabilities, revenue and expenses, and related disclosure of contingent assets and liabilities. We evaluate our estimates, which include estimates used in the valuation of goodwill and intangible assets periodically. We evaluate our estimates used in connection with our business combinations, the discount rate assumptions applied to our pension and postretirement plan obligations, the expected long-term rate of return on plan assets, and the provision for income taxes on an on-going basis. We base our estimates on historical experience and on various other assumptions that are believed to be reasonable under the circumstances, the results of which form the basis for making judgments about the carrying values of assets and liabilities that are not readily apparent from other sources. Actual results may differ from these estimates under different assumptions or conditions. Principles of Consolidation All significant intercompany transactions and balances have been eliminated. Investments in TNI and MNI are accounted for using the equity method and are reported at cost, plus our share of undistributed earnings since acquisition less, for TNI, amortization of, and reductions in the value of, intangible assets. Cash and Cash Equivalents We consider all highly liquid debt instruments purchased with an original maturity of three months or less at date of acquisition to be cash equivalents. Accounts Receivable We evaluate our allowance for credit losses based on historical credit experience, payment trends and other economic factors. Accounts considered to be uncollectible are written off. Inventories Newsprint inventories and other inventories are priced at the lower of cost or net realizable value. LIFO newsprint inventories at September 25, 2022 and September 26, 2021 are less than replacement cost by $1,448,000 and $988,000, respectively. The components of inventory by cost method are as follows: (Thousands of Dollars) September 25, 2022 September 26, 2021 Newsprint - FIFO method 393 409 Newsprint - LIFO method 447 903 Other inventory - FIFO method 2,219 2,870 Specific identification 5,206 2,115 8,265 6,297 Investments Investments in unconsolidated affiliates over which Lee exercises significant influence, but does not control, are accounted for by the equity method. Under this method, an investment account for each unconsolidated affiliate is increased by contributions made and by Lee's share of net income of the unconsolidated affiliate, and decreased by the share of net losses of and distributions from the unconsolidated affiliate. Property and Equipment Property and equipment are carried at cost. Equipment and all other assets are depreciated using the straight line method. The estimated useful lives are as follows: Years Buildings and improvements 5 - 40 Printing presses and insertion equipment 5 - 25 Leasehold improvements 3 - 10 Other 3 - 15 Depreciation expense for 2022, 2021 and 2020 was $14,365,000, $17,982,000, and $15,385,000, respectively. Goodwill and Other Intangible Assets Goodwill and other intangible assets are summarized in Note 6. Intangible assets include customer lists, newspaper subscriber lists and mastheads. Intangible assets subject to amortization are being amortized using the straight-line method except for intangible assets acquired in the Transactions which are being amortized in an accelerated manner consistent with the expected economic benefit. Years Customer lists 10 - 20 Newspaper subscriber lists 10 - 20 We review goodwill and non-amortizing intangible assets, which include only newspaper mastheads, for impairment annually as of the first day of the fiscal fourth quarter, or more frequently in events or changes in circumstances indicate that an asset may be impaired in accordance with FASB Accounting Standards Codification ("ASC") Topic 350, " Intangibles - Goodwill and Other ." Under ASC Topic 350, the impairment test for goodwill and non-amortizing intangible assets must be based on estimated fair values. Impairment would occur when the carrying amount of the reporting unit is greater than its fair value. Companies with reporting units with zero or negative carrying value are required to disclose the amount of goodwill for those reporting units. Leases The Company determines if an arrangement is a lease at inception. Operating leases are included in operating lease right-of-use ("ROU") lease assets, current portion of long-term lease liabilities and operating lease liabilities on the Consolidated Balance Sheets. Finance lease would be included in property, plant and equipment, current portion of long-term debt and long-term debt on the Consolidated Balance Sheets. Amortization of operating lease ROU assets is included in other operating expenses. Amortization of finance leases would be included in depreciation expense. Operating lease ROU assets and operating lease liabilities are recognized based on the present value of the future minimum lease payments over the lease term at commencement date. The ROU asset is adjusted to include lease payments made to date and initial direct costs incurred and to deduct for lease incentives received and impairment recognized. As most of the Company's leases do not provide an implicit rate, We determined the incremental borrowing rate based on a senior secured collateral adjusted yield curve for the Company. This yield curve reflects the estimated rate that would have been paid by the Company to borrow on a collateralized basis over a similar term in a similar economic environment. The lease terms may include options to extend or terminate the lease when it is reasonable certain that the option will be exercised. Lease expense for minimum lease payments is recognized on a straight-line basis over the lease term. Certain lease agreements have lease and non-lease components, which are accounted for together. See Note 8 for additional information related to leases. Business Combinations The Company accounts for acquisitions in accordance with the provisions of ASC Topic 805 - " Business Combinations ", which provides guidance for recognition and measurement of identifiable assets and goodwill acquired, liabilities assumed, and any non-controlling interest in the acquiree at fair value. In a business combination, the assets acquired, liabilities assumed and non-controlling interest in the acquiree are recorded as of the date of acquisition at their respective fair values with limited exceptions. Any excess of the purchase price (consideration transferred) over the estimated fair values of net assets acquired is recorded as goodwill. Transaction costs are expensed as incurred. The operating results of the acquired business are reflected in the Company's Consolidated Financial Statements from the date of acquisition. Revenue Recognition Revenue is recognized when a performance obligation is satisfied by the transfer of control of the contracted goods or services to our customers, in an amount that reflects the consideration we expect to receive in exchange for those goods or services. Restructuring Costs and Other Restructuring costs and other primarily related to severance expenses associated with involuntary terminations, as well as litigation, advisor, and other expenses associated with the unsolicited bid offer in November 2021. These costs are expensed as incurred. Prior to 2021, other costs included in Restructuring Costs and Other include estimated impacts of withdrawals from our multiemployer plans. Multiemployer plans are discussed in Note 10. Pension, Postretirement and Postemployment Benefit Plans We evaluate our liabilities for pension, postretirement and postemployment benefit plans based upon computations made by consulting actuaries, incorporating estimates and actuarial assumptions of future plan service costs, future interest costs on projected benefit obligations, rates of compensation increases, when applicable, employee turnover rates, anticipated mortality rates, expected investment returns on plan assets, asset allocation assumptions of plan assets and other factors. We apply a practical expedient under ASC Topic 715, Compensation – Retirement Benefits , which allows us to measure plan assets and benefit obligations using the month-end that is closest to our fiscal year-end. Accordingly, we measure our plan assets and benefit obligations as of September 30, or upon a remeasurement event. We use the alternative spot rate approach which utilizes a full yield curve to estimate the interest cost component of benefit cost by applying the specific spot rates along the yield curve used in the determination of the benefit obligation to the relevant projected cash flows. Multiemployer Pension Plans The Company contributes to a number of multiemployer defined benefit pension plans under the terms of collective-bargaining agreements that cover certain of the Company's union represented employees. The risks of participating in these multiemployer plans are different from single-employer plans in that assets contributed are pooled and may be used to provide benefits to employees of other participating employers. If a participating employer withdraws from or otherwise ceases to contribute to the plan, the unfunded obligations of the plan may be borne by the remaining participating employers. Alternatively, if the Company chooses to stop participating in one of its multiemployer plans, it may incur a withdrawal liability based on its actuarially determined share of the unfunded status of the plan. Contributions made to multiemployer plans are based on collective-bargaining agreements and are accounted for under guidance related to multiemployer plans, which essentially provides that contributions to such plans are expensed when due. Any withdrawal liability would be recognized at the point withdrawal from the plan becomes probable. See Note 10 for additional information. Income Taxes Deferred income tax assets are recognized for deductible temporary differences and loss carryforwards and deferred income tax liabilities are recognized for taxable temporary differences which are the difference between the reported amounts of assets and liabilities and their tax basis. Deferred income tax assets are reduced by a valuation allowance when, in our opinion, it is more likely than not that some portion or all of the deferred income tax assets will not be realized. Deferred income tax assets and liabilities are adjusted for the effects of changes in tax laws and rates on the date of enactment. We recognize the effect of income tax positions only if those positions are more likely than not of being sustained. Recognized income tax positions are measured at the largest amount that is greater than 50% likely of being realized. Changes in recognition or measurement are reflected in the period in which the change in judgment occurs. We record interest and penalties related to unrecognized tax benefits as a component of income tax expense. Fair Value Measurements We utilize ASC Topic 820 - Fair Value Measurements and Disclosures , to measure and report fair value. ASC Topic 820 defines fair value, establishes a framework for measuring fair value and expands disclosures about fair value measurements. ASC Topic 820 establishes a three-level hierarchy of fair value measurements based on whether the inputs to those measurements are observable or unobservable, which consists of the following levels: Level 1 - Quoted prices for identical instruments in active markets. Level 2 - Quoted prices for similar instruments in active markets; quoted prices for identical or similar instruments in markets that are not active; and model-derived valuations in which all significant inputs are observable in active markets. Level 3 - Valuations derived from valuation techniques in which one or more significant inputs are unobservable. Investments measured at net asset value, as a practical expedient for fair value, are excluded from the fair value hierarchy. Valuation methodologies used for pension and postretirement assets measured at fair value are as follows: Cash and cash equivalents consist of short term deposits valued based on quoted prices in active markets. Such investments are classified as Level 1. Treasury Inflation-Protected Securities ("TIPS") consist of low yield mutual funds and are valued by quoted inactive market prices . Such investments are classified as Level 2. Equity securities are valued based on the closing market price in an active market and are classified as Level 1. Certain investments in commingled funds are valued at the end of the period based upon the value of the underlying investments as determined by quoted market prices. Such investments are classified as Level 2. Certain equity securities are part of a collective investment fund for which there is no readily determinable fair value. This fund is valued at the net asset value of units held at the end of the period based upon the value of the underlying investments, which is determined using multiple approaches including by quoted market prices and by private market quotations. Such investments are excluded from the fair value hierarchy. Debt securities consist of government securities, corporate bonds, and mutual funds. Government securities and corporate bonds are valued based upon quoted market prices in an inactive market. Such investments are classified as Level 2. Mutual funds are valued based upon quoted market prices in an active market. Such investments are classified as Level 1. Hedge funds consist of a long/short equity funds and a diversified fund of funds for which there is no readily determinable fair value. These funds are valued at the net asset value of units held at the end of the period based upon the value of the underlying investments, which is determined using multiple approaches including by quoted market prices and by private market quotations. Such investments are excluded from the fair value hierarchy. Segments Our business consists of approximately 50 strategic business units ("SBU's"). The SBU's generally include print and digital subscription products and the associated advertising and marketing services. Each of our SBUs comparable types of costs (compensation, newsprint/ink, and other costs) to generate similar sources of advertising and marketing services revenue and subscription revenue, they produce products in similar manner; they have same class of customers and they use the same distribution processes. In other words, each SBU engages in the same business activities. Separate operating results of each SBU are not reviewed by the chief operating decision maker ("CODM"). The CODM reviews consolidated statements of income and consolidated balance sheets on a monthly basis, and reviews the consolidated statements of cash flows ("SOCF") on a quarterly basis. The balance sheets and SOCF are only prepared on a consolidated level. Selective revenue and expense details by SBU are reviewed by the CODM, however, the focus of those reviews is on details of advertising and marketing services revenue by SBU and subscription revenue by SBU. Complete operating results or other profitability measures by SBU are not reviewed by the CODM. Further, business decisions by the CODM, including the allocation of resources, are determined based on reviewing consolidated information. Stock Compensation and Warrants We have several stock-based compensation plans. We account for grants under those plans under the fair value expense recognition provisions of ASC Topic 718 - Compensation-Stock Compensation . We determine the fair value of stock options using the Black-Scholes option pricing formula. Key inputs to this formula include expected term, expected volatility and the risk-free interest rate. The expected term represents the period that our stock-based awards are expected to be outstanding, and is determined based on historical experience of similar awards, giving consideration to contractual terms of the awards, vesting schedules and expectations of future employee behavior. The volatility factor is calculated using historical market data for our Common Stock. The time frame used is equal to the expected term. We base the risk-free interest rate on the yield to maturity at the time of the stock option grant on zero-coupon U.S. government bonds having a remaining term equal to the option's expected term. When estimating forfeitures, we consider voluntary termination behavior as well as actual option forfeitures. We amortize as compensation expense the value of stock options and restricted Common Stock using the straight-line method over the requisite service period or restriction period, which is generally one Prior to 2022, we also had 600,000 warrants outstanding to purchase shares of our Common Stock. Warrants were recorded at fair value determined using the Black-Scholes option pricing formula. These warrants expired in 2022. See Notes 7, 12 and 15. Uninsured Risks We are self-insured for health care, workers compensation and certain long-term disability costs of our employees, subject to stop loss insurance, which limits our losses in the event of large claims. We accrue our estimated health care costs in the period in which such costs are incurred, including an estimate of incurred but not reported claims. Other risks are insured and carry deductible losses of varying amounts. We have posted cash collateral totaling $4,600,000 at September 25, 2022 in support of our insurance programs recorded under Other on the consolidated balance sheets. Our accrued reserves for health care and workers compensation claims are based upon estimates of the remaining liability for retained losses made by consulting actuaries. The amount of workers compensation reserve has been determined based upon historical patterns of incurred and paid loss development factors from the insurance industry. Recently Issued Accounting Standards - Standards Adopted in 2022 None Recently Issued Accounting Standards - Standards Adopted in 2021 In June 2016, the FASB issued a new standard ASC Topic 326 Financial Instruments - Credit Losses to replace the incurred loss impairment methodology with a methodology that reflects expected credit losses and requires consideration of a wider array of reasonable and supportable information to inform and develop credit loss estimates. We are required to use a forward-looking expected credit loss model for both accounts receivables and other financial instruments. The new standard was adopted on September 28, 2020, using a modified retrospective approach. This standard did not have a material impact on our Consolidated Financial Statements. In August 2018, the FASB issued Accounting Standards Update ("ASU") 2018-13 Fair Value Measurements that changes disclosure requirements related to fair value measurements as part of the disclosure framework project. The disclosure framework project aims to improve effectiveness of disclosures in the notes to the financial statements by focusing on requirements that clearly communicate the most important information to users of the financial statements. The new guidance was adopted on September 28, 2020, and did not have a material impact on our Consolidated Financial Statements. In December 2019, the FASB issued new guidance that simplifies the accounting for income taxes by eliminating certain exceptions to the guidance in ASC Topic 740 Income Taxes related to the approach for intraperiod tax allocation, the methodology for calculating income taxes in an interim period and the recognition for deferred tax liabilities for outside basis differences. The standard also simplifies aspects of the accounting for franchise taxes and enacted changes in tax laws or rates and clarifies the accounting for transactions that result in a step-up in the tax basis of goodwill. This new guidance was adopted September 28, 2020, and did not have a material impact on our Consolidated Financial Statements. In August 2018, FASB issued ASU 2018-14 Compensation - Retirement Benefits - Defined Benefit Plans to amend disclosure requirements for employers that sponsor defined benefit pension or other postretirement plans. The new standard was adopted on September 28, 2020 using a retrospective approach, and did not have a material impact on our Consolidated Financial Statements. |
Immaterial Corrections to Prior
Immaterial Corrections to Prior Period Financial Statements | 12 Months Ended |
Sep. 25, 2022 | |
Accounting Changes and Error Corrections [Abstract] | |
Immaterial Corrections to Prior Period Financial Statements | IMMATERIAL CORRECTIONS TO PRIOR PERIOD FINANCIAL STATEMENTS In 2022, the Company identified an immaterial error in its accounting for certain deferred tax assets contained in its previously issued audited consolidated financial statements for the fiscal years ended September 26, 2021, and September 27, 2020 (including the unaudited interim periods within those fiscal years), and the unaudited interim consolidated financial statements for the interim periods ended June 26, 2022, March 27, 2022, and December 26, 2021. The error relates to tax basis associated with goodwill and a put option that had been recognized in 2008 in connection with the acquisition of Pulitzer, Inc. When the put option was settled in 2009, the Company should have remeasured the tax basis to reflect the cash settlement of the put option, but did not. This remeasurement would have resulted in the deferred tax assets being reduced to zero and the recognition of a deferred tax liability. The Company assessed the materiality of these errors in accordance with SEC Staff Accounting Bulletins (SAB) No. 99, Materiality , and SAB No. 108, Quantifying Misstatements , on its previously issued consolidated financial statements and determined that, after reviewing the nature of the corrections, as well as evaluating the quantitative and qualitative characteristics of the errors, these adjustments do not represent a material change to the prior period financial statements. The Company has revised its previously issued consolidated financial statements as set forth in the tables below. As a result of this error, the Company recorded an adjustment to the opening balance sheet in the fiscal period ended September 27, 2020, to increase net deferred tax liabilities and accumulated deficit by $14,559,000. The table below sets forth the impact of correcting the error in the Consolidated Statements of Income (loss) and Comprehensive Income (loss). (Thousands of Dollars, Except Per Common Share Data) Year Ended September 26, 2021 Year Ended September 27, 2020 As previously reported Adjustment As Revised As previously reported Adjustment As Revised Income before Income Taxes 32,047 — 32,047 2,843 — 2,843 Income tax expense 7,215 40 7,255 4,104 (1,131) 2,973 Net income (loss) 24,832 (40) 24,792 (1,261) 1,131 (130) (Loss) income attributable to Lee Enterprises, Incorporated 22,785 (40) 22,745 (3,106) 1,131 (1,975) Comprehensive (loss) income attributable to Lee Enterprises, Inc. 85,022 (40) 84,982 5,958 1,131 7,089 Earnings per common share Basic 3.99 (0.01) 3.98 (0.55) 0.20 (0.35) Diluted 3.91 (0.01) 3.90 (0.55) 0.20 (0.35) The table below sets forth the impact of correcting the error in the Consolidated Balance Sheets. (Thousands of Dollars) As of September 26, 2021 As of September 27, 2020 As previously reported Adjustment As Revised As previously reported Adjustment As Revised Liabilities Deferred incomes taxes 40,295 13,468 53,763 15,208 13,428 28,636 Total liabilities 786,853 13,468 800,321 893,690 13,428 907,118 Accumulated deficit (245,744) (13,468) (259,212) (268,529) (13,428) (281,957) Total stockholders' equity (deficit) 54,565 (13,468) 41,097 (31,564) (13,428) (44,992) Total equity (deficit) 56,698 (13,468) 43,230 (29,633) (13,428) (43,061) Total liabilities and stockholders' equity 843,551 — 843,551 864,057 — 864,057 The table below sets forth the impact of correcting the error in the Consolidated Statements of Stockholders' Equity (Deficit) (Thousands of Dollars) Year Ended September 26, 2021 Year Ended September 27, 2020 As previously reported Adjustment As Revised As previously reported Adjustment As Revised Accumulated deficit: Balance, beginning of year (268,529) (13,428) (281,957) (265,423) (14,559) (279,982) Net income (loss) 24,832 (40) 24,792 (1,261) 1,131 (130) Balance, end of year (245,744) (13,468) (259,212) (268,529) (13,428) (281,957) The table below sets forth the impact of correcting the error in the Consolidated Statements of Cash Flows. (Thousands of Dollars) Year Ended September 26, 2021 Year Ended September 27, 2020 As previously reported Adjustment As Revised As previously reported Adjustment As Revised Operating Activities Net income (loss) 24,832 (40) 24,792 (1,261) 1,131 (130) Adjustments to reconcile net income (loss) to net cash provided by operating activities: Deferred income taxes 5,120 40 5,160 (3,560) (1,131) (4,691) Unaudited Interim Financial Information The tables below sets forth the impact of the error correction on the unaudited interim Consolidated Balance Sheets for the interim periods in 2022. The error had no impact on the unaudited interim Consolidated Statements of Income (Loss) and Comprehensive Income (Loss), and Statements of Cash Flows, in the 2022 interim periods. (Thousands of Dollars) As of December 26, 2021 As of March 27, 2022 As previously reported Adjustment As Revised As previously reported Adjustment As Revised Liabilities Deferred incomes taxes 38,957 13,468 52,425 38,397 13,468 51,865 Total liabilities 768,744 13,468 782,212 740,032 13,468 753,500 Accumulated deficit (233,086) (13,468) (246,554) (240,362) (13,468) (253,830) Total stockholders' equity 60,912 (13,468) 47,444 53,129 (13,648) 39,481 Total equity 63,105 (13,468) 49,637 55,369 (13,468) 41,901 Total liabilities and stockholders' equity 831,849 — 831,849 795,401 — 795,401 (Thousands of Dollars) As of June 26, 2022 As previously reported Adjustment As Revised Liabilities Deferred incomes taxes 37,295 13,468 50,763 Total liabilities 740,221 13,468 753,689 Accumulated deficit (240,631) (13,468) (254,099) Total stockholders' equity 52,391 (13,468) 41,147 Total equity 54,615 (13,468) 41,147 Total liabilities and stockholders' equity 794,836 — 794,836 |
Acquisitions
Acquisitions | 12 Months Ended |
Sep. 25, 2022 | |
Business Combination and Asset Acquisition [Abstract] | |
ACQUISITIONS | ACQUISITIONSOn March 16, 2020, the Company completed the Purchase Agreement. As part of the Purchase Agreement, the Company agreed to purchase certain assets and assume certain liabilities of BH Media's newspapers and related publications business ("BH Media Newspaper Business"), excluding real estate and fixtures such as production equipment, and all of the issued and outstanding capital stock of Buffalo News for a combined purchase price of $140,000,000. BH Media includes 30 daily newspapers and digital operations, in addition to 49 paid weekly newspapers with websites and 32 other print products. Buffalo News is a provider of local print and digital news to the Buffalo, NY area. The rationale for the acquisition was primarily the attractive nature of the various publications, businesses, and digital platforms as well as the revenue growth and operating expense synergy opportunities. The Transactions were funded pursuant to a Credit Agreement dated as of January 29, 2020, between the Company and BH Finance LLC, a Nebraska limited liability company affiliated with Berkshire (the "Credit Agreement"), as described further in Note 7. Between July 2, 2018 and March 16, 2020, the Company managed the BH Media Newspaper Business pursuant to the Management Agreement between BH Media and the Company dated June 26, 2018 ("Management Agreement"). In connection with the Transactions, the Management Agreement terminated on March 16, 2020. As part of the settlement of the preexisting relationship, the Company received $5,425,000 at closing. This amount represents $1,245,000 in fixed fees pro-rated under the contract and $4,180,000 in variable fees based upon the pro-rated annual target. The amount we received settled our existing contract asset balance, which totaled $3,589,000 as of December 29, 2019, and the remaining amount was reflected in Other Revenue for the 13 weeks ended March 29, 2020. The amount of variable fees was estimated based on BH Media financial performance through March 16, 2020. Actual financial performance through March 16, 2020 did not vary materially from the estimated amount. As such, the Company did not recognize a gain or loss as a result of the settlement of this preexisting relationship. In connection with the Transactions, the Company entered into a lease agreement between BH Media, as Landlord, and the Company, as Tenant, providing for the leasing of 68 properties and related fixtures (including production equipment) used in the BH Media Newspaper Business ("BH Lease"). The BH Lease commenced on March 16, 2020. The BH Lease requires the Company to pay annual rent of $8,000,000, payable in equal payments, as well as all operating costs relating to the properties (including maintenance, repairs, property taxes and insurance). Rent payments are subject to a Rent Credit (as defined in the Lease) equal to 8.00% of the net consideration for any leased real estate sold by BH Media during the term of the Lease. As of September 25, 2022, the Company has earned monthly rent credits of $166,000, making current annual rent of $6,004,000. In connection with the BH Lease, the Company recognized $56,226,000 and $56,226,000 in ROU assets and offsetting lease liabilities as of March 16, 2020. The allocation of the purchase price is final. As part of the Transactions, the Company also entered into the Credit Agreement and the BH Lease, as described above. The Company concluded that these agreements were not separate from the Transactions and evaluated these agreements for off-market terms and no such terms were identified. As such, the consideration for the acquisitions was limited to cash consideration, as shown below. The following table summarizes the final determination of fair values of the assets and liabilities for the Transactions. (Thousands of Dollars) Estimated fair value as previously reported (a) Measurement period adjustments Fair value as adjusted Cash and cash equivalents 22,293 — 22,293 Current assets 52,559 (855) 51,704 Other assets 12,167 4,343 16,510 Property and equipment 42,952 33 42,985 Operating lease assets 7,445 101 7,546 Advertiser relationships 38,780 (11,160) 27,620 Subscriber relationships 36,060 (8,210) 27,850 Commercial print relationships 17,130 2,430 19,560 Mastheads 21,680 (1,290) 20,390 Goodwill 63,559 16,337 79,896 Total assets 314,625 1,729 316,354 Current liabilities assumed (73,451) 1,074 (72,377) Operating lease liabilities (6,625) (921) (7,546) Other liabilities assumed (2,246) (1,882) (4,128) Pension obligations (43,503) — (43,503) Postemployment benefit obligations (36,800) — (36,800) Total liabilities (162,625) (1,729) (164,354) Net assets 152,000 — 152,000 Less: acquired cash (22,293) — (22,293) Total consideration less acquired cash 129,707 — 129,707 (a) As previously reported in the Company's Quarterly Report on Form 10-Q for the period ended March 29, 2020. The Company had various measurement period adjustments due to additional knowledge gained after the acquisition date but prior to the end of the measurement period. The significant adjustments included $11,160,000 decrease to Advertiser relationships, $8,210,000 decrease to Subscriber relationships, and $2,430,000 increase to Commercial print relationships due to updates in assumptions related to the forecast and attrition rates, and the changes were offset in Goodwill. Other changes included adjustments to accrued liabilities of $634,000, uncertain tax position allowance of $138,000, and a $3,600,000 reclassification involving workers compensation and medical reserves that was identified during management's review. Pro Forma Information (Unaudited) The following table sets forth unaudited pro forma results of operations assuming the Transactions, along with the credit arrangements necessary to finance the Transactions, occurred on the first day of fiscal year 2020. Unaudited (Thousands of Dollars, Except Per Share Data) September 27, Total revenues 821,793 Income attributable to Lee Enterprises, Incorporated 17,632 Earnings per share - diluted 3.10 This pro forma financial information is based on historical results of operations, adjusted for the allocation of the purchase price and other acquisition accounting adjustments. This pro forma information is not necessarily indicative of what our results would have been had we operated the businesses since the beginning of the periods presented. The pro forma adjustments reflect the income statement effects of depreciation expense and amortization of intangibles related to the fair value adjustments of the assets acquired, acquisition-related costs, incremental interest expense related to the financing of the Transactions and 2020 Refinancing, the BH Lease entered into as part of the Transactions, the elimination of certain intercompany activity and the related tax effects of the adjustments. The only material, nonrecurring adjustments relate to the write-off of previously unamortized debt-issuance costs as of October 1, 2018, related to the refinanced debt resulted in an $8,973,000 increase to net income for 2020. No other periods were affected by the adjustments. |
Revenue
Revenue | 12 Months Ended |
Sep. 25, 2022 | |
Disaggregation of Revenue [Abstract] | |
Revenue | REVENUE Revenue is recognized when control of the promised goods or services is transferred to customers, in an amount that reflects the consideration the Company expects to be entitled to in exchange for goods or services. Revenues are recognized as performance obligations are satisfied either at a point in time, such as when and advertisement is published, or over time, such as audience subscription revenue. No single customer represented 10% or more of the Company's net revenue in any fiscal period presented. Advertising and marketing services revenue Print advertising revenue includes amounts charged to customers for retail, national, or classified advertising space purchased in our newspapers, advertising marketing services and other print advertising products such as preprint inserts and direct mail. Digital advertising revenue includes amounts advertisements placed on our digital platforms, amounts charged to customers for digital marketing services which include: audience extension, Search Engine Optimization, Search Engine Marketing, web and mobile production, social media services and reputation monitoring and management. Payments for print and digital advertising revenue are due upon completion of our performance obligations at previously agreed upon rates. In instances where the timing of revenue recognition differs from the timing of invoicing, such timing differences are not large. As a result, we have determined that our contracts do not include a significant financing component. Subscription revenue Print subscription revenue results from the sale of print editions of newspapers to individual subscribers and to sales outlets that resell the newspapers. Print subscriptions include full access to all forms of content provided. Single copy revenue is also included in subscription revenue. Subscription revenue from single-copy and home delivery subscriptions are recognized at the point in time the publications are delivered. Digital subscription revenue results from the sale of digital only access to the Company's content delivered via digital products purchased. Digital subscription revenue is recognized over time as performance obligations are met throughout the contract term. Payments for print and digital subscription revenue are typically collected in advance, are for contract periods of one year or less and result in an unearned revenue liability that is reduced when revenue is recognized. Other revenue Other revenue primarily consists of digital services, commercial printing and delivery of third party products. Digital services revenues, which are primarily delivered through BLOX Digital, are primarily comprised of contractual agreements to provide webhosting and content management services. As such, digital services revenue is recognized over the contract period. Prices for digital services are agreed upon in advance of the contract beginning and are typically billed in arrears on a monthly basis, with the exception of implementation fees which are recognized as deferred revenue and amortized over the contract period. Commercial printing and delivery revenue is recognized when the product is delivered to the customer. Additionally in 2020, other revenue included fixed and variable fees collected from our Management Agreement. Fixed fee revenue from the Management Agreement was recognized over time and paid quarterly and variable fees were paid annually. Variable fees were recognized when the fees were deemed earned and it was probable that a significant reversal in the amount of cumulative revenue recognized will not occur when the uncertainty associated with the variable consideration was subsequently resolved. The Management Agreement expired in 2020 upon the completion of the Transactions. The following table presents our revenue disaggregated by source: (Thousands of Dollars) 2022 2021 2020 Operating revenue: Print advertising revenue 184,963 227,892 183,164 Digital advertising revenue 181,465 141,391 106,491 Advertising and marketing services revenue 366,428 369,283 289,655 Print subscription revenue 313,504 329,484 248,913 Digital-only subscription revenue 40,120 28,229 19,372 Subscription Revenue 353,624 357,713 268,285 Print other revenue 42,962 48,656 39,632 Digital other revenue 17,955 18,997 20,432 Other revenue 60,917 67,653 60,064 Total operating revenue 780,969 794,649 618,004 Contract Assets and Liabilities: The Company’s primary source of unearned revenue is from subscriptions paid in advance of the service provided. The Company expects to recognize the revenue related to unsatisfied performance obligations over the next twelve months in accordance with the terms of the subscriptions and other contracts with customers. The unearned revenue balances described herein are the Company's only contract liability. Unearned revenue was $49,929,000 as of September 25, 2022 and $61,404,000 as of September 26, 2021. Revenue recognized in 2022 that was included in the contract liability as of September 26, 2021 was $54,739,000. Accounts receivable, excluding allowance for credit losses and contract assets, was $74,759,000 and $71,644,000 as of September 25, 2022 and September 26, 2021 respectively. Allowance for credit losses was $5,237,000 and $6,574,000 as of September 25, 2022 and September 26, 2021, respectively. Practical expedients: Sales commissions are expensed as incurred as the associated contractual periods are one year or less. These costs are recorded within compensation. The vast majority of our contracts have original expected lengths of one year or less and revenue is earned at a rate and amount that corresponds directly with the value to the customer. |
Investments in Associated Compa
Investments in Associated Companies | 12 Months Ended |
Sep. 25, 2022 | |
Equity Method Investments and Joint Ventures [Abstract] | |
Investment in Associated Companies | INVESTMENTS IN ASSOCIATED COMPANIES TNI Partners In Tucson, Arizona, TNI, acting as agent for our subsidiary, Star Publishing Company (“Star Publishing”) and Citizen Publishing Company (“Citizen”), a subsidiary of Gannett Co. Inc., is responsible for printing, delivery, advertising and subscription activities of the Arizona Daily Star , as well as the related digital platforms and specialty publications. TNI collects all receipts and records income and pays substantially all operating expenses incident to the partnership's operations and publication of the newspaper and other media. Income or loss of TNI is allocated equally to Star Publishing and Citizen. Summarized financial information of TNI is as follows: (Thousands of Dollars) September 25 September 26 ASSETS Current assets 2,801 2,238 Investments and other assets 1,584 1,693 Total assets 4,385 3,931 LIABILITIES AND MEMBERS' EQUITY Current liabilities 5,005 5,027 Members' equity (620) (1,096) Total liabilities and members' equity 4,385 3,931 Summarized results of TNI are as follows: (Thousands of Dollars) 2022 2021 2020 Operating revenue 34,153 34,782 37,101 Operating expenses 25,445 25,320 29,673 Net income 8,708 9,462 7,428 Company's 50% share 4,354 4,731 3,714 Less amortization of intangible assets — — 209 Equity in earnings of TNI 4,354 4,731 3,505 TNI makes periodic distributions of its earnings. We received $3,831,000, $5,150,000, and $3,176,000 in distributions in 2022, 2021 and 2020, respectively. At September 25, 2022 and September 26, 2021, the carrying value of the Company's 50% investment in TNI is $15,345,000 and $14,702,000, respectively. The difference between our carrying value and our 50% share of the members' equity of TNI relates principally to goodwill of $12,366,000 and other identified intangible assets of $2,336,000, certain of which have been amortized over their estimated useful lives through 2020. See Note 6. TNI provides editorial services to the Company. Editorial service costs are included in other operating expenses in the Consolidated Statements of Income and Comprehensive Income and totaled $5,164,000, $4,520,000, and $4,904,000 in 2022, 2021 and 2020, respectively. Madison Newspapers, Inc. We have a 50% ownership interest in MNI, which publishes daily and Sunday newspapers, and other publications in Madison, Wisconsin, and other Wisconsin locations, and related digital sites. Net income or loss of MNI (after income taxes) is allocated equally to us and The Capital Times Company (“TCT”). MNI conducts its business under the trade name Capital Newspapers. Summarized financial information of MNI is as follows: (Thousands of Dollars) September 25 September 26 ASSETS Current assets 5,837 6,930 Investments and other assets 29,903 30,422 Total assets 35,740 37,352 LIABILITIES AND MEMBERS' EQUITY Current liabilities 5,922 6,921 Other liabilities 5,696 6,470 Stockholders' equity 24,122 23,961 Total liabilities and stockholders' equity 35,740 37,352 Summarized results of MNI are as follows: (Thousands of Dollars) 2022 2021 2020 Operating revenue 47,621 46,015 48,056 Operating expenses, excluding restructuring costs, depreciation and amortization 37,922 35,583 46,845 Restructuring costs 169 107 274 Depreciation and amortization 672 711 697 Operating income 8,857 9,614 240 Net income (loss) 2,605 3,362 (204) Equity in earnings of MNI 1,303 1,681 (102) MNI makes periodic distributions of its earnings. We received $1,250,000, $2,300,000, and $1,300,000 in distributions in 2022, 2021 and 2020, respectively. We provide editorial services to MNI. Editorial service fees are included in other revenue in the Consolidated Statements of Income and Comprehensive Income and totaled $5,607,000, $5,562,000, and $6,152,000 in 2022, 2021 and 2020, respectively. At September 25, 2022 and September 26, 2021, the carrying value of the Company's 50% investment in MNI is $12,033,000 and $11,980,000, respectively. |
Goodwill and Other Intangible A
Goodwill and Other Intangible Assets | 12 Months Ended |
Sep. 25, 2022 | |
Goodwill and Intangible Assets Disclosure [Abstract] | |
Goodwill and Other Intangible Assets | GOODWILL AND OTHER INTANGIBLE ASSETS Changes in the carrying amount of goodwill are as follows: (Thousands of Dollars) 2022 2021 Goodwill, gross amount 1,618,933 1,617,174 Accumulated impairment losses (1,288,729) (1,288,729) Goodwill, beginning of year 330,204 328,445 Measurement period adjustments — 1,759 Disposal (700) — Goodwill, end of year 329,504 330,204 Identified intangible assets related to continuing operations consist of the following: (Thousands of Dollars) September 25 September 26 Non-amortized intangible assets: Mastheads 26,346 39,672 Amortizable intangible assets: Customer and newspaper subscriber lists (1) 323,568 774,242 Less accumulated amortization (1) (228,541) (657,243) 95,027 116,999 Non-compete and consulting agreements (1) — 28,656 Less accumulated amortization (1) — (28,656) — — Identified intangible assets 121,373 156,671 (1) Fully amortized balances were removed in 2022. In the first quarter of fiscal 2022, the Company wrote off approximately $199.9 million of gross cost and accumulated amortization related to fully amortized customer and newspaper subscriber lists, as well as $28.7 million of gross cost and accumulated amortization related to fully amortized non-compete and consulting agreements. In the fourth quarter of fiscal 2022, the Company wrote off the gross cost and accumulated amortization for additional fully amortized customer and newspaper subscriber lists, and wrote down the gross cost and accumulated amortization for customer and newspaper subscriber lists that were previously impaired, for an aggregate total of $251.1 million. The adjustments did not have an impact on the net balances previously reported during any of the interim periods during 2022, nor any prior fiscal periods. As discussed in Note 1, the Company reviews goodwill and non-amortized intangible assets for impairment annually on the first day of the fourth quarter, or more frequently if events or changes in circumstances indicate that an asset may be impaired in accordance with ASC Topic 350. All of the Company’s goodwill is attributed to the single reporting unit. For goodwill, the calculated fair value exceeded the carrying value. For goodwill, the calculated fair value was determined using the income approach. Estimates of fair value include Level 3 inputs as they are subjective in nature, involve uncertainties and matters of significant judgement and are made at a specific point in time. Thus changes in key assumptions from period to period could significantly affect the estimates of fair value. The Company performed its annual assessment on the first day of our fourth fiscal quarter, and determined the fair value of our single reporting unit was in excess of carrying value and as such, there was no impairment in 2021 and 2022. In 2022, the Company disposed of a non-core operation with $700,000 of attributable goodwill. For mastheads, the calculated fair value includes Level 3 inputs that were determined using the royalty savings method. The key assumptions used in the fair value estimates under the royalty savings method are revenue and market growth, royalty rates for newspaper mastheads (the royalty rates utilized range from 0.0% to 1.5%), estimated tax rates, and appropriate risk-adjusted weighted-average cost of capital (for 2022, 2021 and 2020, the weighted-average cost of capital used was 11.00%, 10.50% and 9.50%, respectively). These assumptions reflect Lee's best estimates, but these items involve inherent uncertainties based on market conditions generally outside of the Company's control. A 50 basis point decrease in royalty rates would result in an additional $6,992,000 of impairment. Increasing the discount rate by 100 basis points would result in an additional $257,000 of impairment. In 2022, 2021, and 2020, we recorded non-cash charges to reduce the carrying value of non-amortized intangible assets. Such charges are recorded in assets loss (gain) on sales, impairments and other A summary of the pretax impairment charges is included in the table below: (Thousands of Dollars) 2022 2021 2020 Non-amortized intangible assets 14,203 787 972 Property, equipment and other assets — 190 — 14,203 977 972 Amortization expense for 2022, 2021, and 2020 was $22,180,000, $24,859,000, and $20,748,000, respectively. The Company recognized $27,620,000 of advertiser relationships, $27,850,000 of subscriber relationships, $19,560,000 of commercial print relationships, and $20,390,000 of indefinite-lived masthead assets as part of the Transactions. Annual amortization of intangible assets for the years ending September 2023 to September 2027 is estimated to be $19,370,000, $16,623,000, $10,917,000, $7,040,000, and $5,072,000, respectively. The weighted average amortization period for those amortizable assets acquired as part of the Transactions is 12.5 years. The Company recognized $79,896,000 of Goodwill as part of the Transactions. The value of the acquired Goodwill is primarily related to an assembled workforce and expected synergies from combining operations. For tax, purposes, the amount of Goodwill that is expected to be deductible is $42,442,000. |
Debt
Debt | 12 Months Ended |
Sep. 25, 2022 | |
Debt Disclosure [Abstract] | |
Debt | DEBT On March 16, 2020 concurrent with closing the Transactions, the Company completed a comprehensive refinancing of its debt (the "2020 Refinancing"). The 2020 Refinancing consists of the Credit Agreement and Term Loan. The proceeds of the Term Loan were used, along with cash on hand, to refinance the Company's $431,502,000 it incurred in 2014 (the "2014 Refinancing") as well as to fund the acquisition of BH Media Newspaper Business assets and the stock of Buffalo News for $140,000,000 in cash. With the closing of this transaction, BH Finance became Lee's sole lender. Proceeds of the Term Loan were used to finance the Transactions and refinance all of the Company's outstanding debt at par. The Term Loan matures in March 2045. The Company's debt is collateralized by all company assets. As of September 25, 2022, the Company has $462,554,000 in aggregate principle outstanding under the Term Loan. The debt has a fixed interest rate at September 25, 2022 of 9.0%. During the twelve months ended September 25, 2022, we made principal debt payments of $20,062,000. Payments consisted of $10,450,000 from sale of non-core assets, $6,112,000 from September 26, 2021 excess cash flow, and $3,500,000 in voluntary prepayments. Future payments are contingent on the Company's ability to generate future excess cash flow. The Credit Agreement contains certain customary representations and warranties, certain affirmative and negative covenants and certain conditions, including restrictions on incurring additional indebtedness, creating certain liens, making certain investments or acquisitions, issuing dividends, repurchasing shares of stock of the Company and certain other capital transactions. Certain existing and future direct and indirect material domestic subsidiaries of the Company are guarantors of the Company's obligations under the Credit Agreement. The Credit Agreement restricts us from paying dividends on our Common Stock. This restriction does not apply to dividends issued with the Company's Equity Interests or from the proceeds of a sale of the Company's Equity Interests. Further, the Credit Agreement restricts or limits, among other things, subject to certain exceptions, the ability of the Company and its subsidiaries to: (i) incur additional indebtedness, (ii) make certain investments, (iii) enter into mergers, acquisitions and asset sales, (iv) incur or create liens and (v) enter into transactions with certain affiliates. The Credit Agreement contains various representations and warranties by the Company and may be terminated upon the occurrence of certain events of default, including non-payment. The Credit Agreement also contains cross-default provisions tied to other agreements with BH Finance entered into by the Company and its subsidiaries in connection with the 2020 Refinancing. Principal Payments Voluntary pre-payments under the Credit Agreement are not subject to call premiums and are payable at par, with the exception of the change of control provisions discussed below. Excluding the Excess Cash Flow payments described below, there are no scheduled mandatory principal payments required under the Credit Agreement. The Company is required to make mandatory prepayments of the Term Loan as follows: • The Company must prepay the Term Loan in an aggregate amount equal to 100% of any Net Cash Proceeds received by the Company or any Subsidiary from a sale, transfer, license, or other disposition of any property of the Company or any subsidiary in excess of $500,000 in any ninety (90) day period. • The Company is required to prepay the Term Loan with excess cash flow, defined as cash on the balance sheet at quarter end in excess of $20,000,000 ("Excess Cash Flow"). Excess Cash Flow is used to prepay the Term Loan, at par, and is due within 50-days of quarter end. • If there is a Change of Control (as defined in the Credit Agreement), BH Finance has the option to require the Company to prepay the Term Loan in cash equal to 105% of the unpaid principal balance, plus accrued and unpaid interest. The Company may, upon notice to BH Finance, at any time or from time to time, voluntarily prepay the Term Loan in whole or in part, at par, provided that any voluntary prepayment of the Term Loan shall be accompanied by payment of all accrued interest on the amount of principal prepaid to the date of prepayment. Warrants In connection with the 2 nd Lien Term Loan entered into in the 2014 Refinancing, we entered into a Warrant Agreement dated as of March 31, 2014 (the "Warrant Agreement"). Under the Warrant Agreement, certain affiliates or designees of the 2 nd Lien Lenders received on March 31, 2014 their pro rata share of warrants to purchase, in cash, an initial aggregate of 600,000 shares of Common Stock, subject to adjustment pursuant to anti-dilution provisions (the "Warrants"). The Warrants represent, when fully exercised, approximately 10.1% of shares of Common Stock outstanding at March 30, 2014 on a fully diluted basis. The exercise price of the Warrants was $41.90 per share. The Warrants expired in March 2022. The Warrant Agreement contained provisions requiring the Warrants to be measured at fair value and included in warrants and other liabilities in our Consolidated Balance Sheets. We re-measure the fair value of the liability each reporting period, with changes reported in other, net non-operating income (expense). The initial fair value of the Warrants was $16,930,000. See Note 15. In connection with the issuance of the Warrants, we entered into a Registration Rights Agreement dated as of March 14, 2014 (the "Registration Rights Agreement"). The Registration Rights Agreement requires, among other matters, that we use our commercially reasonable efforts to maintain the effectiveness for certain specified periods of a shelf registration statements related to the shares of Common Stock to be issues upon exercise of the Warrants. Other In connection with the 2014 Refinancing, we capitalized $37,819,000 of debt financing costs. Amortization of debt financing costs totaled $11,282,000 in 2020. In connection with the Transactions, we accelerated recognition of the unamortized debt financing costs of $9,583,000 in 2020. Liquidity Pursuant to the terms of the Credit Agreement, our debt does not include a revolver. Our liquidity, consisting of cash on the balance sheet, totals $16,185,000 at September 25, 2022. This liquidity amount excludes any future cash flows. We expect all interest and principal payments due in the next twelve months will be satisfied by existing cash and our cash flows, which will allow us to maintain an adequate level of liquidity. There are numerous potential consequences under the Term Loan if an event of default, as defined, occurs and is not remedied. Many of those consequences are beyond our control. The occurrence of one or more events of default would give rise to the right of BH Finance to exercise their remedies under the Credit Agreement including, without limitation, the right to accelerate all outstanding debt and take actions authorized in such circumstances under applicable collateral security documents. Our ability to operate as a going concern is dependent on our ability to remain in compliance with debt covenants and to repay, refinance or amend our debt agreements as they become due. The Credit Agreement (as defined above) has only limited affirmative covenants with which we are required to maintain compliance and there are no leverage or financial performance covenants. We are in compliance with our debt covenants at September 25, 2022. |
Leases
Leases | 12 Months Ended |
Sep. 25, 2022 | |
Leases [Abstract] | |
Leases | LEASES We lease certain real estate, vehicles, and equipment. Our leases have remaining lease terms of 1 to 40 years, some of which may include options to extend the leases, and some of which may include options to terminate the leases. The exercise of lease renewal options is at our sole discretion. The depreciable lives of assets and leasehold improvements are limited by the expected lease term unless there is a transfer of title or purchase option reasonably certain of exercise. During the period ended September 25, 2022, the Company permanently vacated office and distribution space related to 14 leases. The space was vacated as some of our locations have transitioned to long-term remote working arrangements and space consolidation. The abandonment of lease space is an indicator of impairment and the Company assessed the lease ROU asses and leasehold improvements for impairment. Estimates of fair value include Level 3 inputs which are subjective in nature and involve uncertainties and matters of significant judgement and are made at a specific point in time. During the period ended September 25, 2022, the Company recorded non-cash impairment losses of $7,815,000 for right-of-use assets, which is recorded on the Income Statement under the line item assets loss (gain) on sales, impairments and other. Total lease expense consists of the following: (Thousands of Dollars) 2022 2021 2020 Operating lease costs 13,786 14,846 10,148 Variable lease costs 1,201 92 1,911 Short-term lease costs 217 — 426 Total Operating Lease Expense 15,205 14,938 12,485 Supplemental cash flow information related to our operating leases was as follows: (Thousands of Dollars) 2022 2021 2020 Cash paid for amounts included in the measurement of lease liabilities: Operating cash outflow from operating leases 14,325 14,789 10,003 Right-of-use assets obtained in exchange for operating lease liabilities 990 932 1,630 As of September 25, 2022, maturities of lease liabilities were as follows: (Thousands of Dollars) 2023 12,921 2024 11,871 2025 10,630 2026 9,187 2027 7,736 Thereafter 18,799 Total lease payments 71,144 Less: interest (17,282) Present value of lease liabilities 53,862 Our lease contracts are discounted using the incremental borrowing rate for the Company. We determined the incremental borrowing rate based on a senior secured collateral adjusted yield curve for the Company. This yield curve reflects the estimated rate that would have been paid by the Company to borrow on a collateralized basis over a similar term in a similar economic environment. The weighted average revolving lease terms and discount rates for all of our operating leases were as follows. September 25, 2022 Weighted average remaining lease term (years) 6 years, 7 months, 2 days Weighted Average discount rate 7.99 % |
Defined Benefit Pension Plans
Defined Benefit Pension Plans | 12 Months Ended |
Sep. 25, 2022 | |
Retirement Benefits [Abstract] | |
Defined Benefit Pension Plans | DEFINED BENEFIT PENSION PLANS During 2022, the Company made several changes to its defined benefit plans. At the beginning of 2022, the Company was the sponsor of seven single employer defined benefit plans, two of which were frozen to new participants and future benefits. As of September 25, 2022, we are the sponsor of two single-employer defined benefit plans, which provide benefits to certain current and former employees of Lee. During 2022 we notified certain participants in our defined benefit plans of changes to be made to the plans. The Company froze future benefits and participation for an additional four of the defined benefit plans. The freeze of future benefits resulted in a non-cash curtailment gain of $1,027,000 related to the four plans. In connection with the freeze the Company provided certain benefit enhancements that resulted in an increase to our net pension liability and a decrease to Accumulated Other Comprehensive income of $6,077,000. Additionally, the Company merged the six frozen plans into one fully-funded defined benefit plan, the Lee Enterprises Incorporated Pension Plan ("Plan") effective in the second quarter of fiscal 2022. During September of 2022, as part of a pension de-risking strategy for the Plan, the Company, executed an agreement pursuant to transfer to a third party insurance company (the "Insurer") $85,622,000 of the Plan's liabilities in exchange for $81,377,000 of Plan assets and recorded a non-cash settlement gain of $4,245,000 in Pension and OPEB related benefit (cost) and other, net. The net periodic cost (benefit) components of our pension plans are as follows: (Thousands of Dollars) 2022 2021 2020 Service cost for benefits earned during the year 467 2,529 1,361 Interest cost on projected benefit obligation 7,941 7,147 7,577 Expected return on plan assets (18,140) (18,688) (12,986) Amortization of net (gain) loss (3,320) 4,018 3,166 Amortization of prior service benefit 636 (6) (6) Settlement gain (4,245) — — Curtailment gain (1,027) — — Net periodic pension cost (benefit) (17,688) (5,000) (888) Changes in benefit obligations and plan assets are as follows: (Thousands of Dollars) 2022 2021 Benefit obligation, beginning of year 384,187 401,381 Service cost 467 2,529 Interest cost 7,941 7,147 Plan Amendments 6,077 — Actuarial (gain) loss (85,754) (5,413) Benefits paid (21,686) (21,182) Liability (gain)/loss due to curtailment (1,027) — Settlements (81,377) — Administrative expenses paid — (275) Benefit obligation, end of year 208,828 384,187 Fair value of plan assets, beginning of year: 398,430 331,354 Actual return on plan assets (84,000) 89,892 Benefits paid (21,686) (21,182) Administrative expenses paid (2,123) (2,599) Settlements (81,377) — Employer contributions 112 965 Fair value of plan assets, end of year 209,356 398,430 Funded status 528 14,243 Disaggregated amounts recognized in the Consolidated Balance Sheets are as follows: (Thousands of Dollars) September 25 September 26 Pension obligations 528 14,243 Accumulated other comprehensive income (before income taxes) 5,452 36,965 Amounts recognized in accumulated other comprehensive income (loss) are as follows: (Thousands of Dollars) September 25 September 26 Unrecognized net actuarial gain (loss) 10,893 36,965 Unrecognized prior service cost (5,441) — 5,452 36,965 We do not expect to recognize any net actuarial gain (loss), in net periodic pension cost in 2023. Assumptions Weighted-average assumptions used to determine benefit obligations are as follows: (Percent) September 25 September 26 Discount rate 5.3 2.7 Interest crediting rate 2.5 2.5 Weighted-average assumptions used to determine net periodic benefit cost are as follows: (Percent) 2022 2021 2020 Discount rate - service cost 5.4 3.0 3.3 Discount rate - interest cost 5.3 1.9 2.6 Expected long-term return on plan assets 5.0 5.9 6.0 For 2022, the expected long-term return on plan assets is 5.0%. The assumptions related to the expected long-term return on plan assets are developed through an analysis of historical market returns, current market conditions and composition of plan assets. For the year ended September 25, 2022, the most significant driver of the decrease in benefit obligation was the higher actuarial gains experienced by all plans and the annuity purchase mentioned above. The plans recognized actuarial gains due to significant increases in bond yields that resulted in increases to the discount rates. Discount rate increases were partially offset by actual return on assets falling behind expected returns for the year. For the year ended September 26, 2021, the most significant driver of the decrease in benefit obligations for the plans was the higher actuarial gains experienced by all plans. The pension plans recognized actuarial gains due to small increases in bond yields that resulted in increases to the discount rates and actual return on assets exceeding expected returns for the year improving the funded status of the plans. Plan Assets The primary objective of our investment strategy is to satisfy our pension obligations at a reasonable cost. Assets are actively invested to balance real growth of capital through appreciation, reinvestment of dividend and interest income, and safety of invested funds. Our investment policy outlines the governance structure for decision making, sets investment objectives and restrictions and establishes criteria for selecting and evaluating investment managers. The use of derivatives is prohibited, except on a case-by-case basis where the manager has a proven capability, and only to hedge quantifiable risks such as exposure to foreign currencies. An investment committee, consisting of certain of our executives and supported by independent consultants, is responsible for monitoring compliance with the investment policy. Assets are periodically redistributed to maintain the appropriate policy allocation. The weighted-average asset allocation of our pension assets, is as follows: (Percent) Policy Allocation Actual Allocation Asset Class September 25 September 25 September 26 Equity securities 25 41 50 Debt securities 65 43 34 TIPS — — 4 Hedge fund investments 10 15 11 Cash and cash equivalents 1 1 1 Plan assets include no Company securities. Assets include cash and cash equivalents and receivables from time to time due to the need to reallocate assets within policy guidelines. As of September 26, 2021, Buffalo News had a different policy for asset allocation than the Company's other plans. As of September 25, 2022, all Company plans asset allocation were the same. Due to the timing of the annuity purchase (as discussed above), funds were organized in a way that provided sufficient liquidity for the transaction. This caused our pension plans asset allocation to differ significantly from our desired policy as of September 25, 2022. Fair Value Measurements The fair value hierarchy of pension assets at September 25, 2022 is as follows: (Thousands of Dollars) NAV Level 1 Level 2 Level 3 Cash and cash equivalents — 1,562 — — Domestic equity securities 2,235 67,661 — — International equity securities — 5,743 4,519 — Emerging equity securities — 4,996 — — Debt securities — 25,742 65,364 — Hedge fund investments 32,515 — — — The fair value hierarchy of pension assets at September 26, 2021 was as follows: (Thousands of Dollars) NAV Level 1 Level 2 Level 3 Cash and cash equivalents — 4,447 — — Domestic equity securities 7,236 78,577 42,448 — International equity securities — 9,485 9,505 — Emerging equity securities — 8,077 — — TIPS — 7,280 — — Debt securities — 181,908 32,781 — Hedge fund investments 18,758 — — — There were no purchases, sales or transfers of assets classified as Level 3 in 2022 or 2021. Pension assets that are excluded from the fair value hierarchy and are measured at net asset value or "NAV", include three investments: • U.S. small cap value equity common/collective fund for which fund prices are not publicly available. The balance of this investment is $2,235,000 and $7,236,000 as of September 25, 2022 and September 26, 2021, respectively. We can redeem this fund on a monthly basis. • Global equity long/short common/collective hedge fund-of-funds for which fund prices are established on a monthly basis. The balance of this investment is $16,663,000 and $8,371,000 as of September 25, 2022 and September 26, 2021, respectively. We can redeem up to 90% of our investment in this fund within 90-120 days of notice with the remaining distributed following completion of the audit of the Fund's financial statements for the year. • Global equity long/short common/collective hedge fund-of-funds for which fund prices are established on a monthly basis. The balance of this investment is $15,852,000 and $10,387,000 as of September 25, 2022 and September 26, 2021, respectively. We can redeem up to 50% of our investment in this fund twice per year. The activity within Other comprehensive income (loss) for both pension plans and postretirement plans was as follows: (Thousands of Dollars) 2022 2021 2020 Comprehensive (loss) income, net of taxes: Change in unrecognized benefit plan gain (loss) arising during the period, net of taxes $279, $19,148, and $4,095, respectively (14,485) 59,663 10,329 Amortization of items to periodic pension and other post-employment benefit costs during the period, net of taxes $6,389, $819, and $542, respectively (11,049) 2,574 (1,265) Other comprehensive (loss) income recognized in operations, net of taxes (25,534) 62,237 9,064 Cash Flows Based on our forecast at September 25, 2022, we expect to make no contributions to our pension trust in 2023. We anticipate future benefit payments to be paid from the pension trust as follows: (Thousands of Dollars) 2023 14,668 2024 14,830 2025 14,947 2026 15,126 2027 15,204 2028-2032 75,362 Other Plans We are the plan sponsor for other funded and unfunded defined benefit pension plans that are not considered material. The net benefit obligation for these plans are $967,000 and $996,000 at September 25, 2022 and September 26, 2021, respectively. We provide retiree medical and life insurance benefits under postretirement plans at several of our operating locations. The level and adjustment of participant contributions vary depending on the specific plan. Our liability and related expense for benefits under the postretirement plans are recorded over the service period of active employees based upon annual actuarial calculations. We accrue postemployment disability benefits when it becomes probable that such benefits will be paid and when sufficient information exists to make reasonable estimates of the amounts to be paid. The net periodic postretirement benefit cost (benefit) components for our postretirement plans are as follows: (Thousands of Dollars) 2022 2021 2020 Service cost for benefits earned during the year 108 207 500 Interest cost on projected benefit obligation 340 429 869 Expected return on plan assets (1,053) (1,007) (1,060) Amortization of net actuarial gain (994) (685) (743) Amortization of prior service benefit (647) (647) (647) Curtailment gains — (23,830) — Net periodic postretirement benefit (2,246) (25,533) (1,081) Changes in benefit obligations and plan assets are as follows: (Thousands of Dollars) 2022 2021 Benefit obligation, beginning of year 18,538 47,637 Service cost 108 207 Interest cost 340 429 Liability (gain) loss due to Curtailment — (23,830) Actuarial loss (gain) (4,729) (4,285) Benefits paid, net of premiums received (1,958) (1,678) Medicare Part D subsidies (12) 58 Benefit obligation, end of year 12,287 18,538 Fair value of plan assets, beginning of year 26,802 25,706 Actual return on plan assets (2,453) 1,534 Employer contributions 1,525 1,293 Benefits paid, net of premiums and Medicare Part D subsidies received (2,105) (1,795) Plan participant contributions 134 64 Fair value of plan assets at measurement date 23,903 26,802 Funded status 11,616 8,264 Disaggregated amounts recognized in the Consolidated Balance Sheets are as follows: (Thousands of Dollars) September 25 September 26 Non-current assets 19,066 17,664 Postretirement benefit obligations (7,450) (9,859) Accumulated other comprehensive income (before income tax benefit) 17,327 17,747 Amounts recognized in accumulated other comprehensive income (loss) before income tax benefit are as follows: (Thousands of Dollars) September 25 September 26 Unrecognized net actuarial gain 14,298 14,071 Unrecognized prior service benefit 3,029 3,676 17,327 17,747 We expect to recognize $1,014,000 and $647,000 of unrecognized net actuarial gain and unrecognized prior service benefit, respectively, in net periodic postretirement benefit in 2023 . Assumptions Weighted-average assumptions used to determine postretirement benefit obligations are as follows: (Percent) September 25 September 26 Discount rate 5.3 2.6 Expected long-term return on plan assets 5.0 4.0 The assumptions related to the expected long-term return on plan assets are developed through an analysis of historical market returns, current market conditions and composition of plan assets. Weighted-average assumptions used to determine net periodic benefit cost are as follows: (Percent) 2022 2021 2020 Discount rate - service cost 5.5 2.5 3.4 Discount rate - interest cost 5.1 1.9 2.8 Expected long-term return on plan assets 5.0 4.0 4.5 For 2022 , the expected long-term return on plan assets is 5.0%. The assumptions related to the expected long-term return on plan assets are developed through an analysis of historical market returns, current market conditions and composition of plan assets. Assumed health care cost trend rates are as follows: (Percent) September 25 September 26 Health care cost trend rates 10.6 6.2 Rate to which the cost trend rate is assumed to decline (the “Ultimate Trend Rate”) 4.5 4.5 Year in which the rate reaches the Ultimate Trend Rate 2032 2030 Administrative costs related to indemnity plans are assumed to increase at the health care cost trend rates noted above. In 2021 , we notified certain participants in one of our postemployment medical plans of changes to their plan, including elimination of coverage for certain participants. These changes resulted in a non-cash curtailment gain of $23,830,000 in 2021 . The curtailment gain is recorded in Curtailment gain in the Consolidated Statements of Income (loss) and Comprehensive Income (loss). These charges also reduced the postemployment benefit obligation by $23,830,000 in 2021 . For the year ended September 25, 2022 , the most significant driver of the decrease in benefit obligations for the plans was the higher actuarial gains experienced by all plans. The plans recognized actuarial gains due to significant increases in bond yields that resulted in increases to the discount rates. Discount rate increases were partially offset by actual return on assets falling behind expected returns for the year. For the year ended September 26, 2021, the most significant driver of the decrease in benefit obligations for the plans was the higher actuarial gains experienced by all plans. The plans recognized actuarial gains due to small increases in bond yields that resulted in increases to the discount rates, actual return on assets exceeding expected returns for the year, and updated expected future claims costs. Plan Assets Assets of the retiree medical plan are invested in a master trust. The master trust also pays benefits of active employee medical plans for the same union employees. The fair value of master trust assets allocated to the active employee medical plans at September 25, 2022 and September 26, 2021 is $614,000 and $631,000, respectively, which are included within the tables below. The primary objective of our investment strategy is to satisfy our postretirement obligations at a reasonable cost. Assets are actively invested to balance real growth of capital through appreciation and reinvestment of dividend and interest income and safety of invested funds. Our investment policy outlines the governance structure for decision making, sets investment objectives and restrictions, and establishes criteria for selecting and evaluating investment managers. The use of derivatives is strictly prohibited, except on a case-by-case basis where the manager has a proven capability, and only to hedge quantifiable risks such as exposure to foreign currencies. An investment committee, consisting of certain of our executives and supported by independent consultants, is responsible for monitoring compliance with the investment policy. Assets are periodically redistributed to maintain the appropriate policy allocation. The weighted-average asset allocation of our postretirement assets is as follows: (Percent) Policy Allocation Actual Allocation Asset Class September 25 2022 September 25 September 26 Equity securities 20 17 20 Debt securities 70 71 68 Hedge fund investment 10 12 12 Cash and cash equivalents — — — Plan assets include no Company securities. Assets include cash and cash equivalents and receivables from time to time due to the need to reallocate assets within policy guidelines. Fair Value Measurements The fair value hierarchy of postretirement assets at September 25, 2022 is as follows: (Thousands of Dollars) NAV Level 1 Level 2 Level 3 Cash and cash equivalents — 26 — — Domestic equity securities 791 1,910 — — Emerging equity securities — 456 — — International equity securities — 573 480 — Debt securities — 17,248 — — Hedge fund investment 2,782 — — — The fair value hierarchy of postretirement assets at September 26, 2021 is as follows: (Thousands of Dollars) NAV Level 1 Level 2 Level 3 Cash and cash equivalents — 25 — — Domestic equity securities 904 2,643 — — Emerging equity securities — 603 — — International equity securities — 747 660 — Debt securities — 18,363 — — Hedge fund investment 3,235 — — — There were no purchases, sales or transfers of assets classified as Level 3 in 2022 or 2021 . Postretirement assets that are excluded from the fair value hierarchy and are measured at net asset value or "NAV", include two investments: • U.S. small cap value equity common/collective fund for which fund prices are not publicly available. The balance of this investment is $791,000 and $904,000 as of September 25, 2022 and September 26, 2021, respectively. We can redeem this fund on a monthly basis. • Global equity long/short common/collective hedge fund-of-funds for which fund prices are established on a monthly basis. The balance of this investment is $2,782,000 and $3,235,000 as of September 25, 2022 and September 26, 2021, respectively. We can redeem up to 90% of our investment in this fund within 90-120 days of notice with the remaining distributed following completion of the audit of the Fund's financial statements for the year. Cash Flows Based on our forecast at September 25, 2022, we do not expect to contribute to our postretirement plans in 2023 . The Medicare Prescription Drug, Improvement and Modernization Act of 2003 (the “Modernization Act”) introduced a prescription drug benefit under Medicare (“Medicare Part D”) and a federal subsidy to sponsors of retiree health care benefit plans (“Subsidy”) that provide a benefit at least actuarially equivalent (as that term is defined in the Modernization Act) to Medicare Part D. We concluded we qualify for the Subsidy under the Modernization Act since the prescription drug benefits provided under our postretirement health care plans generally require lower premiums from covered retirees and have lower deductibles than the benefits provided in Medicare Part D and, accordingly, are actuarially equivalent to or better than, the benefits provided under the Modernization Act. We anticipate future benefit payments to be paid either with future contributions to the plan or directly from plan assets, as follows: (Thousands of Dollars) Gross Less Medicare Part D Subsidy Net 2023 980 — 980 2024 991 — 991 2025 985 — 985 2026 987 — 987 2027 955 — 955 2028-2032 4,563 — 4,563 Postemployment Plan Our postemployment benefit obligation, which represents certain disability benefits, is $1,771,000 at September 25, 2022 and $2,233,000 at September 26, 2021. |
Postretirement and Postemployme
Postretirement and Postemployment Benefits | 12 Months Ended |
Sep. 25, 2022 | |
Defined Benefit Plans and Other Postretirement Benefit Plans Disclosures [Abstract] | |
Postretirement and Postemployment Benefits | DEFINED BENEFIT PENSION PLANS During 2022, the Company made several changes to its defined benefit plans. At the beginning of 2022, the Company was the sponsor of seven single employer defined benefit plans, two of which were frozen to new participants and future benefits. As of September 25, 2022, we are the sponsor of two single-employer defined benefit plans, which provide benefits to certain current and former employees of Lee. During 2022 we notified certain participants in our defined benefit plans of changes to be made to the plans. The Company froze future benefits and participation for an additional four of the defined benefit plans. The freeze of future benefits resulted in a non-cash curtailment gain of $1,027,000 related to the four plans. In connection with the freeze the Company provided certain benefit enhancements that resulted in an increase to our net pension liability and a decrease to Accumulated Other Comprehensive income of $6,077,000. Additionally, the Company merged the six frozen plans into one fully-funded defined benefit plan, the Lee Enterprises Incorporated Pension Plan ("Plan") effective in the second quarter of fiscal 2022. During September of 2022, as part of a pension de-risking strategy for the Plan, the Company, executed an agreement pursuant to transfer to a third party insurance company (the "Insurer") $85,622,000 of the Plan's liabilities in exchange for $81,377,000 of Plan assets and recorded a non-cash settlement gain of $4,245,000 in Pension and OPEB related benefit (cost) and other, net. The net periodic cost (benefit) components of our pension plans are as follows: (Thousands of Dollars) 2022 2021 2020 Service cost for benefits earned during the year 467 2,529 1,361 Interest cost on projected benefit obligation 7,941 7,147 7,577 Expected return on plan assets (18,140) (18,688) (12,986) Amortization of net (gain) loss (3,320) 4,018 3,166 Amortization of prior service benefit 636 (6) (6) Settlement gain (4,245) — — Curtailment gain (1,027) — — Net periodic pension cost (benefit) (17,688) (5,000) (888) Changes in benefit obligations and plan assets are as follows: (Thousands of Dollars) 2022 2021 Benefit obligation, beginning of year 384,187 401,381 Service cost 467 2,529 Interest cost 7,941 7,147 Plan Amendments 6,077 — Actuarial (gain) loss (85,754) (5,413) Benefits paid (21,686) (21,182) Liability (gain)/loss due to curtailment (1,027) — Settlements (81,377) — Administrative expenses paid — (275) Benefit obligation, end of year 208,828 384,187 Fair value of plan assets, beginning of year: 398,430 331,354 Actual return on plan assets (84,000) 89,892 Benefits paid (21,686) (21,182) Administrative expenses paid (2,123) (2,599) Settlements (81,377) — Employer contributions 112 965 Fair value of plan assets, end of year 209,356 398,430 Funded status 528 14,243 Disaggregated amounts recognized in the Consolidated Balance Sheets are as follows: (Thousands of Dollars) September 25 September 26 Pension obligations 528 14,243 Accumulated other comprehensive income (before income taxes) 5,452 36,965 Amounts recognized in accumulated other comprehensive income (loss) are as follows: (Thousands of Dollars) September 25 September 26 Unrecognized net actuarial gain (loss) 10,893 36,965 Unrecognized prior service cost (5,441) — 5,452 36,965 We do not expect to recognize any net actuarial gain (loss), in net periodic pension cost in 2023. Assumptions Weighted-average assumptions used to determine benefit obligations are as follows: (Percent) September 25 September 26 Discount rate 5.3 2.7 Interest crediting rate 2.5 2.5 Weighted-average assumptions used to determine net periodic benefit cost are as follows: (Percent) 2022 2021 2020 Discount rate - service cost 5.4 3.0 3.3 Discount rate - interest cost 5.3 1.9 2.6 Expected long-term return on plan assets 5.0 5.9 6.0 For 2022, the expected long-term return on plan assets is 5.0%. The assumptions related to the expected long-term return on plan assets are developed through an analysis of historical market returns, current market conditions and composition of plan assets. For the year ended September 25, 2022, the most significant driver of the decrease in benefit obligation was the higher actuarial gains experienced by all plans and the annuity purchase mentioned above. The plans recognized actuarial gains due to significant increases in bond yields that resulted in increases to the discount rates. Discount rate increases were partially offset by actual return on assets falling behind expected returns for the year. For the year ended September 26, 2021, the most significant driver of the decrease in benefit obligations for the plans was the higher actuarial gains experienced by all plans. The pension plans recognized actuarial gains due to small increases in bond yields that resulted in increases to the discount rates and actual return on assets exceeding expected returns for the year improving the funded status of the plans. Plan Assets The primary objective of our investment strategy is to satisfy our pension obligations at a reasonable cost. Assets are actively invested to balance real growth of capital through appreciation, reinvestment of dividend and interest income, and safety of invested funds. Our investment policy outlines the governance structure for decision making, sets investment objectives and restrictions and establishes criteria for selecting and evaluating investment managers. The use of derivatives is prohibited, except on a case-by-case basis where the manager has a proven capability, and only to hedge quantifiable risks such as exposure to foreign currencies. An investment committee, consisting of certain of our executives and supported by independent consultants, is responsible for monitoring compliance with the investment policy. Assets are periodically redistributed to maintain the appropriate policy allocation. The weighted-average asset allocation of our pension assets, is as follows: (Percent) Policy Allocation Actual Allocation Asset Class September 25 September 25 September 26 Equity securities 25 41 50 Debt securities 65 43 34 TIPS — — 4 Hedge fund investments 10 15 11 Cash and cash equivalents 1 1 1 Plan assets include no Company securities. Assets include cash and cash equivalents and receivables from time to time due to the need to reallocate assets within policy guidelines. As of September 26, 2021, Buffalo News had a different policy for asset allocation than the Company's other plans. As of September 25, 2022, all Company plans asset allocation were the same. Due to the timing of the annuity purchase (as discussed above), funds were organized in a way that provided sufficient liquidity for the transaction. This caused our pension plans asset allocation to differ significantly from our desired policy as of September 25, 2022. Fair Value Measurements The fair value hierarchy of pension assets at September 25, 2022 is as follows: (Thousands of Dollars) NAV Level 1 Level 2 Level 3 Cash and cash equivalents — 1,562 — — Domestic equity securities 2,235 67,661 — — International equity securities — 5,743 4,519 — Emerging equity securities — 4,996 — — Debt securities — 25,742 65,364 — Hedge fund investments 32,515 — — — The fair value hierarchy of pension assets at September 26, 2021 was as follows: (Thousands of Dollars) NAV Level 1 Level 2 Level 3 Cash and cash equivalents — 4,447 — — Domestic equity securities 7,236 78,577 42,448 — International equity securities — 9,485 9,505 — Emerging equity securities — 8,077 — — TIPS — 7,280 — — Debt securities — 181,908 32,781 — Hedge fund investments 18,758 — — — There were no purchases, sales or transfers of assets classified as Level 3 in 2022 or 2021. Pension assets that are excluded from the fair value hierarchy and are measured at net asset value or "NAV", include three investments: • U.S. small cap value equity common/collective fund for which fund prices are not publicly available. The balance of this investment is $2,235,000 and $7,236,000 as of September 25, 2022 and September 26, 2021, respectively. We can redeem this fund on a monthly basis. • Global equity long/short common/collective hedge fund-of-funds for which fund prices are established on a monthly basis. The balance of this investment is $16,663,000 and $8,371,000 as of September 25, 2022 and September 26, 2021, respectively. We can redeem up to 90% of our investment in this fund within 90-120 days of notice with the remaining distributed following completion of the audit of the Fund's financial statements for the year. • Global equity long/short common/collective hedge fund-of-funds for which fund prices are established on a monthly basis. The balance of this investment is $15,852,000 and $10,387,000 as of September 25, 2022 and September 26, 2021, respectively. We can redeem up to 50% of our investment in this fund twice per year. The activity within Other comprehensive income (loss) for both pension plans and postretirement plans was as follows: (Thousands of Dollars) 2022 2021 2020 Comprehensive (loss) income, net of taxes: Change in unrecognized benefit plan gain (loss) arising during the period, net of taxes $279, $19,148, and $4,095, respectively (14,485) 59,663 10,329 Amortization of items to periodic pension and other post-employment benefit costs during the period, net of taxes $6,389, $819, and $542, respectively (11,049) 2,574 (1,265) Other comprehensive (loss) income recognized in operations, net of taxes (25,534) 62,237 9,064 Cash Flows Based on our forecast at September 25, 2022, we expect to make no contributions to our pension trust in 2023. We anticipate future benefit payments to be paid from the pension trust as follows: (Thousands of Dollars) 2023 14,668 2024 14,830 2025 14,947 2026 15,126 2027 15,204 2028-2032 75,362 Other Plans We are the plan sponsor for other funded and unfunded defined benefit pension plans that are not considered material. The net benefit obligation for these plans are $967,000 and $996,000 at September 25, 2022 and September 26, 2021, respectively. We provide retiree medical and life insurance benefits under postretirement plans at several of our operating locations. The level and adjustment of participant contributions vary depending on the specific plan. Our liability and related expense for benefits under the postretirement plans are recorded over the service period of active employees based upon annual actuarial calculations. We accrue postemployment disability benefits when it becomes probable that such benefits will be paid and when sufficient information exists to make reasonable estimates of the amounts to be paid. The net periodic postretirement benefit cost (benefit) components for our postretirement plans are as follows: (Thousands of Dollars) 2022 2021 2020 Service cost for benefits earned during the year 108 207 500 Interest cost on projected benefit obligation 340 429 869 Expected return on plan assets (1,053) (1,007) (1,060) Amortization of net actuarial gain (994) (685) (743) Amortization of prior service benefit (647) (647) (647) Curtailment gains — (23,830) — Net periodic postretirement benefit (2,246) (25,533) (1,081) Changes in benefit obligations and plan assets are as follows: (Thousands of Dollars) 2022 2021 Benefit obligation, beginning of year 18,538 47,637 Service cost 108 207 Interest cost 340 429 Liability (gain) loss due to Curtailment — (23,830) Actuarial loss (gain) (4,729) (4,285) Benefits paid, net of premiums received (1,958) (1,678) Medicare Part D subsidies (12) 58 Benefit obligation, end of year 12,287 18,538 Fair value of plan assets, beginning of year 26,802 25,706 Actual return on plan assets (2,453) 1,534 Employer contributions 1,525 1,293 Benefits paid, net of premiums and Medicare Part D subsidies received (2,105) (1,795) Plan participant contributions 134 64 Fair value of plan assets at measurement date 23,903 26,802 Funded status 11,616 8,264 Disaggregated amounts recognized in the Consolidated Balance Sheets are as follows: (Thousands of Dollars) September 25 September 26 Non-current assets 19,066 17,664 Postretirement benefit obligations (7,450) (9,859) Accumulated other comprehensive income (before income tax benefit) 17,327 17,747 Amounts recognized in accumulated other comprehensive income (loss) before income tax benefit are as follows: (Thousands of Dollars) September 25 September 26 Unrecognized net actuarial gain 14,298 14,071 Unrecognized prior service benefit 3,029 3,676 17,327 17,747 We expect to recognize $1,014,000 and $647,000 of unrecognized net actuarial gain and unrecognized prior service benefit, respectively, in net periodic postretirement benefit in 2023 . Assumptions Weighted-average assumptions used to determine postretirement benefit obligations are as follows: (Percent) September 25 September 26 Discount rate 5.3 2.6 Expected long-term return on plan assets 5.0 4.0 The assumptions related to the expected long-term return on plan assets are developed through an analysis of historical market returns, current market conditions and composition of plan assets. Weighted-average assumptions used to determine net periodic benefit cost are as follows: (Percent) 2022 2021 2020 Discount rate - service cost 5.5 2.5 3.4 Discount rate - interest cost 5.1 1.9 2.8 Expected long-term return on plan assets 5.0 4.0 4.5 For 2022 , the expected long-term return on plan assets is 5.0%. The assumptions related to the expected long-term return on plan assets are developed through an analysis of historical market returns, current market conditions and composition of plan assets. Assumed health care cost trend rates are as follows: (Percent) September 25 September 26 Health care cost trend rates 10.6 6.2 Rate to which the cost trend rate is assumed to decline (the “Ultimate Trend Rate”) 4.5 4.5 Year in which the rate reaches the Ultimate Trend Rate 2032 2030 Administrative costs related to indemnity plans are assumed to increase at the health care cost trend rates noted above. In 2021 , we notified certain participants in one of our postemployment medical plans of changes to their plan, including elimination of coverage for certain participants. These changes resulted in a non-cash curtailment gain of $23,830,000 in 2021 . The curtailment gain is recorded in Curtailment gain in the Consolidated Statements of Income (loss) and Comprehensive Income (loss). These charges also reduced the postemployment benefit obligation by $23,830,000 in 2021 . For the year ended September 25, 2022 , the most significant driver of the decrease in benefit obligations for the plans was the higher actuarial gains experienced by all plans. The plans recognized actuarial gains due to significant increases in bond yields that resulted in increases to the discount rates. Discount rate increases were partially offset by actual return on assets falling behind expected returns for the year. For the year ended September 26, 2021, the most significant driver of the decrease in benefit obligations for the plans was the higher actuarial gains experienced by all plans. The plans recognized actuarial gains due to small increases in bond yields that resulted in increases to the discount rates, actual return on assets exceeding expected returns for the year, and updated expected future claims costs. Plan Assets Assets of the retiree medical plan are invested in a master trust. The master trust also pays benefits of active employee medical plans for the same union employees. The fair value of master trust assets allocated to the active employee medical plans at September 25, 2022 and September 26, 2021 is $614,000 and $631,000, respectively, which are included within the tables below. The primary objective of our investment strategy is to satisfy our postretirement obligations at a reasonable cost. Assets are actively invested to balance real growth of capital through appreciation and reinvestment of dividend and interest income and safety of invested funds. Our investment policy outlines the governance structure for decision making, sets investment objectives and restrictions, and establishes criteria for selecting and evaluating investment managers. The use of derivatives is strictly prohibited, except on a case-by-case basis where the manager has a proven capability, and only to hedge quantifiable risks such as exposure to foreign currencies. An investment committee, consisting of certain of our executives and supported by independent consultants, is responsible for monitoring compliance with the investment policy. Assets are periodically redistributed to maintain the appropriate policy allocation. The weighted-average asset allocation of our postretirement assets is as follows: (Percent) Policy Allocation Actual Allocation Asset Class September 25 2022 September 25 September 26 Equity securities 20 17 20 Debt securities 70 71 68 Hedge fund investment 10 12 12 Cash and cash equivalents — — — Plan assets include no Company securities. Assets include cash and cash equivalents and receivables from time to time due to the need to reallocate assets within policy guidelines. Fair Value Measurements The fair value hierarchy of postretirement assets at September 25, 2022 is as follows: (Thousands of Dollars) NAV Level 1 Level 2 Level 3 Cash and cash equivalents — 26 — — Domestic equity securities 791 1,910 — — Emerging equity securities — 456 — — International equity securities — 573 480 — Debt securities — 17,248 — — Hedge fund investment 2,782 — — — The fair value hierarchy of postretirement assets at September 26, 2021 is as follows: (Thousands of Dollars) NAV Level 1 Level 2 Level 3 Cash and cash equivalents — 25 — — Domestic equity securities 904 2,643 — — Emerging equity securities — 603 — — International equity securities — 747 660 — Debt securities — 18,363 — — Hedge fund investment 3,235 — — — There were no purchases, sales or transfers of assets classified as Level 3 in 2022 or 2021 . Postretirement assets that are excluded from the fair value hierarchy and are measured at net asset value or "NAV", include two investments: • U.S. small cap value equity common/collective fund for which fund prices are not publicly available. The balance of this investment is $791,000 and $904,000 as of September 25, 2022 and September 26, 2021, respectively. We can redeem this fund on a monthly basis. • Global equity long/short common/collective hedge fund-of-funds for which fund prices are established on a monthly basis. The balance of this investment is $2,782,000 and $3,235,000 as of September 25, 2022 and September 26, 2021, respectively. We can redeem up to 90% of our investment in this fund within 90-120 days of notice with the remaining distributed following completion of the audit of the Fund's financial statements for the year. Cash Flows Based on our forecast at September 25, 2022, we do not expect to contribute to our postretirement plans in 2023 . The Medicare Prescription Drug, Improvement and Modernization Act of 2003 (the “Modernization Act”) introduced a prescription drug benefit under Medicare (“Medicare Part D”) and a federal subsidy to sponsors of retiree health care benefit plans (“Subsidy”) that provide a benefit at least actuarially equivalent (as that term is defined in the Modernization Act) to Medicare Part D. We concluded we qualify for the Subsidy under the Modernization Act since the prescription drug benefits provided under our postretirement health care plans generally require lower premiums from covered retirees and have lower deductibles than the benefits provided in Medicare Part D and, accordingly, are actuarially equivalent to or better than, the benefits provided under the Modernization Act. We anticipate future benefit payments to be paid either with future contributions to the plan or directly from plan assets, as follows: (Thousands of Dollars) Gross Less Medicare Part D Subsidy Net 2023 980 — 980 2024 991 — 991 2025 985 — 985 2026 987 — 987 2027 955 — 955 2028-2032 4,563 — 4,563 Postemployment Plan Our postemployment benefit obligation, which represents certain disability benefits, is $1,771,000 at September 25, 2022 and $2,233,000 at September 26, 2021. |
Other Retirement Plans
Other Retirement Plans | 12 Months Ended |
Sep. 25, 2022 | |
Retirement Benefits [Abstract] | |
Other Retirement Plans | OTHER RETIREMENT PLANS Substantially all of our employees are eligible to participate in a qualified defined contribution retirement plan. We also have a non-qualified plan for employees whose incomes exceed qualified plan limits. The defined contribution retirement plan costs were $3,565,000 in 2022, $3,403,000 in 2021 and $2,666,000 in 2020. Multiemployer Pension Plans We contributed to various multiemployer defined benefit pension plans under the terms of collective bargaining agreements ("CBAs"). The risks of participating in these multiemployer plans are different from our company-sponsored plans in the following aspects: • We do not manage the plan investments or any other aspect of plan administration; • Assets contributed to the multiemployer plan by one employer may be used to provide benefits to employees of other participating employers; • If a participating employer stops contributing to the plan, the unfunded obligations of the plan may be borne by the remaining participating employers; and • If we choose to stop participating in one or more multiemployer plans, we may be required to fund over time an amount based on the unfunded status of the plan at the time of withdrawal, referred to as a "withdrawal liability". Information related to these plans is outlined in the table below: (Thousands of Dollars) Zone Status Funding Improvement Contributions Pension Plan 2022 2021 Status 2022 2021 2020 Surcharge Imposed EIN Expiration Dates of GCIU- Employer Retirement Fund Critical Red Implemented — 10 87 No 91-6024903 N/A (1) District No. 9, International Association of Machinists and Aerospace Workers Pension Trust Endangered Red Implemented — 15 31 N/A 51-0138317 N/A (1) CWA/ITU negotiated Pension Plan Critical Red Implemented — 81 456 No 13-6212879 N/A (1) IAM National Pension Fund Green Red N/A 57 67 86 N/A 51-6031295 1/1/2024 Operating Engineers Central Pension Fund of the International Union of Operating Engineers and Participating Employers (2) Green Green N/A 50 49 52 N/A 36-6052390 2/28/2023 (1) The Company has withdrawn from the multi-employer plans (2) We are subject to two different CBA's under the multi-employer plan. The Company has effectuated withdrawals from several multiemployer plans. We record estimates of withdrawal liabilities as of the time the contracts agreeing to withdraw from those plans are ratified. As of September 25, 2022 and September 26, 2021, we had $24,995,000 and $23,471,000 of accrued withdrawal liabilities. The liabilities reflect the estimated net present value of payments to the fund, payable over 20 years. Several multiemployer plans have CBAs that expire in the next twelve months. It is reasonably possible that if the Company is unable to renegotiate these agreements employees could go on strike which could disrupt the normal operations of the Company. Of our employees in CBA's, approximately 55% have CBA's that expire in the next 12 months. |
Common Stock
Common Stock | 12 Months Ended |
Sep. 25, 2022 | |
Stockholders' Equity Note [Abstract] | |
Common Stock | COMMON STOCK Warrant Agreement In connection with the previous 2nd Lien Term Loan entered into as part of the 2014 Refinancing, we entered into the Warrant Agreement. Under the Warrant Agreement, certain affiliates or designees of the 2nd Lien Lenders received on March 31, 2014, their pro rata share of Warrants to purchase, in cash, 600,000 shares of Common Stock, subject to adjustment pursuant to anti-dilution provisions. The Warrants represent, when fully exercised, approximately 10.1% of shares of Common Stock outstanding at March 30, 2014, on a fully diluted basis. The exercise price of the Warrants is $41.90 per share. The Warrant Agreement contains a cash settlement provision in the event of a change of control prior to March 31, 2018, as well as other provisions requiring the Warrants be measured at fair value and classified as warrants and other liabilities in our Consolidated Balance Sheets. We re-measure the liability to fair value each reporting period, with changes reported in other non-operating income (expense). The initial fair value of the Warrants was $16,930,000. The Warrants expired in March 2022. In connection with the issuance of the Warrants, we entered into the Registration Rights Agreement. The Registration Rights Agreement requires, among other matters, that we use our commercially reasonable efforts to file and maintain the effectiveness for certain specified periods of a shelf registration statement covering the shares of Common Stock upon exercise of the Warrants. |
Stock Ownership Plans
Stock Ownership Plans | 12 Months Ended |
Sep. 25, 2022 | |
Share-Based Payment Arrangement [Abstract] | |
Stock Ownership Plans | STOCK OWNERSHIP PLANS Total non-cash stock compensation expense is $1,337,000, $854,000 and $1,042,000, in 2022, 2021 and 2020, respectively. At September 25, 2022, we have reserved 279,810 shares of Common Stock for issuance to employees under an incentive and non-statutory stock option and restricted stock plan approved by stockholders of which 279,810 shares are available for granting of non-qualified stock options or issuance of restricted Common Stock. Stock Options Options are granted at a price equal to the fair market value on the date of the grant and are exercisable, upon vesting, over a ten-year period. A summary of stock option activity is as follows: (Thousands of Shares) 2022 2021 2020 Outstanding, beginning of year 36 41 81 Exercised (9) (2) — Canceled (27) (3) (40) Outstanding, end of year — 36 41 Exercisable, end of year — 36 41 Weighted average prices of stock options are as follows: (Dollars) 2022 2021 2020 Exercised 11.30 11.30 — Cancelled 11.30 11.30 25.30 Outstanding, end of year — 11.40 11.40 Restricted Common Stock A summary of restricted Common Stock activity follows: (Thousands of Shares) 2022 2021 2020 Outstanding, beginning of year 154 155 148 Granted 78 46 72 Vested (66) (45) (61) Forfeited (1) (2) (4) Outstanding, end of year 165 154 155 Weighted average grant date fair values of restricted Common Stock are as follows: (Dollars) 2022 2021 2020 Outstanding, beginning of year 16.70 21.50 24.90 Granted 30.01 11.20 16.20 Vested 20.93 27.30 23.40 Forfeited 23.60 16.10 24.40 Outstanding, end of year 21.21 16.70 21.50 Total unrecognized compensation expense for unvested restricted Common Stock at September 25, 2022 is $1,876,000, which will be recognized over a weighted average period of 1.3 years. Employee Stock Purchase Plans We have 27,000 shares of Common Stock available for issuance pursuant to our Employee Stock Purchase Plan. We also have 870 shares of Common Stock available for issuance under our Supplemental Employee Stock Purchase Plan. There has been no activity under these plans in 2022, 2021, or 2020. |
Income Taxes
Income Taxes | 12 Months Ended |
Sep. 25, 2022 | |
Income Tax Disclosure [Abstract] | |
Income Taxes | INCOME TAXES Income tax expense (benefit) consists of the following: (Thousands of Dollars) 2022 2021 2020 Current: Federal 4,932 (2,431) 8,779 State 142 3,642 (10) Deferred (4,376) 6,044 (5,796) 698 7,255 2,973 Income tax (benefit) expense related to operations differs from the amounts computed by applying the U.S. federal income tax rate to income (loss) before income taxes. The reasons for these differences are as follows: (Percent of (Loss) Income Before Income Taxes) 2022 2021 2020 Computed “expected” income tax expense 21.0 21.0 21.0 State income tax benefit, net of federal tax benefit (8.9) 5.6 21.7 Net income of associated companies (77.2) (1.8) (18.3) Resolution of tax matters (32.2) 3.2 (30.5) Remeasurement due to rate changes (11.2) 0.1 (31.0) Non-deductible expenses 124.0 0.9 19.4 Provision to return adjustment 70.2 — — Valuation allowance 11.9 (6.0) 125.2 Wage credit, net addback (7.5) — — Warrant valuation (1.9) (0.4) (7.3) Other — — 4.4 88.2 22.6 104.6 Net deferred income tax liabilities consist of the following components: (Thousands of Dollars) September 25 September 26 Deferred income tax liabilities: Property and equipment (11,712) (13,284) Identified intangible assets (21,649) (27,543) ASC 842 - Leases DTL (11,308) (15,813) Pension and postretirement benefits — (6,346) Investments (26,489) (14,823) (71,158) (77,809) Deferred income tax assets: Allowance for credit losses 802 237 Pension and postretirement benefits 3,445 — Long-term debt 161 716 Interest deduction limitation 4,809 — Operating loss carryforwards 26,224 26,999 ASC 842 - Leases DTA 13,112 15,840 Accrued compensation 1,914 6,630 Accrued expenses 1,663 443 Other 2,964 812 55,094 51,677 Valuation allowance (26,655) (27,631) Net deferred income tax liabilities (42,719) (53,763) All deferred taxes are categorized as non-current. A reconciliation of 2022 and 2021 changes in gross unrecognized tax benefits is as follows: (Thousands of Dollars) 2022 2021 Balance, beginning of year 18,279 27,008 Changes in tax positions for prior years (307) 1,008 Increases (decrease) in tax positions for the current year 1,887 (8,940) Lapse in statute of limitations (1,617) (797) Balance, end of year 18,242 18,279 Approximately $11,942,000 and $10,984,000 of the gross unrecognized tax benefit balances for 2022 and 2021, respectively, relate to state net operating losses which are netted against deferred taxes on our balance sheet. The total amount of unrecognized tax benefits that, if recognized, would impact the effective tax rate was $3,582,000 at September 25, 2022. The company does not expect that unrecognized tax benefits will fluctuate significantly in the next twelve months. We recognize interest and penalties related to unrecognized tax benefits as a component of income tax expense. The amount of accrued interest related to unrecognized tax benefits was, net of tax, $1,476,000 at September 25, 2022 and $1,393,000 at September 26, 2021. There were no amounts provided for penalties at September 25, 2022 or September 26, 2021. At September 25, 2022 and September 26, 2021, we had a deferred tax asset of $4,809,000 and $0, respectively, related to disallowed interest expense. The company is current undergoing a New York Franchise Tax audit that includes fiscal year periods 2019 through 2021. Certain of the Company's state income tax returns for the year ended September 25, 2016 are open for examination. The Federal and remaining state returns are open beginning with the September 24, 2017 year. At September 25, 2022, we have state tax benefits of approximately $45,137,000 in net operating loss ("NOL") carryforwards that expire between 2022 and 2040. These NOL carryforwards result in a deferred income tax asset of $35,658,000 at September 25, 2022, a portion of which is offset by a valuation allowance. |
Fair Value of Financial Instrum
Fair Value of Financial Instruments | 12 Months Ended |
Sep. 25, 2022 | |
Fair Value Disclosures [Abstract] | |
Fair Value Of Financial Instruments | FAIR VALUE OF FINANCIAL INSTRUMENTS The following methods and assumptions are used to estimate the fair value of each class of financial instruments for which it is practicable to estimate value. The carrying amounts of cash equivalents, accounts receivable and accounts payable approximate fair value because of the short maturity of those instruments. Certain other investments totaling $4,226,000, including our 16.7% ownership of the non-voting common stock and 0.7% of the voting common stock of TCT, which represents 8.7% of total TCT stock, and a private equity investment, are carried at cost. Certain other investments totaling $1,745,000 which include securities held in trust under a deferred compensation arrangement, are carried at fair value with gains and losses reported in earnings. These represent Level 2 fair value measurements. At September 25, 2022, we had no floating rate debt. Our fixed rate debt consists of $462,554,000 principal amount of the Term Note. At September 25, 2022 the fair value is $463,446,000. This represents a Level 2 fair value measurement. As discussed more fully in Notes 7 and 12 , we recorded a liability for the Warrants issued in connection with the Warrant Agreement. The liability was initially measured at its fair value and we re-measure the liability to fair value each reporting period, with changes reported in other non-operating income (expense). The initial fair value of the Warrants was $16,930,000. The fair value of the Warrants at September 25, 2022, September 26, 2021, and September 27, 2020 were zero, $71,000 and $363,000, respectively. In other, net non-operating income (expense) in the Consolidated Statements of Income (loss) and Comprehensive Income (Loss), we recognized income of $71,000 in 2022, $292,000 in 2021, and of $832,000 in 2020, for adjustments in the fair value of the Warrants. The Warrants expired in March 2022. The following assumptions were used to estimate the fair value of the Warrants: 2022 2021 2020 Volatility (Percent) — 43 84 Risk-free interest rate (Percent) — 0.05 0.12 Expected term (Years) — 0.5 1.5 Estimated fair value (Dollars) — 0.12 0.06 |
Earnings Per Common Share
Earnings Per Common Share | 12 Months Ended |
Sep. 25, 2022 | |
Earnings Per Share [Abstract] | |
Earnings Per Common Share | EARNINGS PER COMMON SHARE The following table sets forth the computation of basic and diluted earnings per common share: (Thousands of Dollars and Shares, Except Per Common Share Data) 2022 2021 2020 (Loss) income attributable to Lee Enterprises, Incorporated: (2,017) 22,745 (1,975) Weighted average Common Stock 5,946 5,873 5,811 Less non-vested restricted Common Stock (167) (156) (154) Basic average Common Stock 5,778 5,717 5,657 Dilutive stock options and restricted Common Stock — 109 37 Diluted average Common Stock 5,778 5,826 5,694 Earnings per common share: Basic: (0.35) 3.98 (0.35) Diluted (0.35) 3.90 (0.35) For 2021 we had 600,000 weighted average shares not considered in the computation of diluted earnings per share because the exercise prices of the related stock options and Warrants were in excess of the fair market value of our Common Stock. For 2022 and 2020 we had 74,304 and 600,000 weighted average shares, respectively, not considered in the computation of diluted earnings per share because the Company recorded net losses. |
Allowance for Credit Losses
Allowance for Credit Losses | 12 Months Ended |
Sep. 25, 2022 | |
Allowance for Credit Loss [Abstract] | |
Allowance for Credit Losses | ALLOWANCE FOR CREDIT LOSSES Valuation and qualifying account information related to the allowance for credit losses related to continuing operations is as follows: (Thousands of Dollars) 2022 2021 2020 Balance, beginning of year 6,574 13,431 6,434 Additions charged to expense 5,190 1,505 8,607 Deductions from reserves (6,527) (8,362) (1,610) Balance, end of year 5,237 6,574 13,431 |
Other Information
Other Information | 12 Months Ended |
Sep. 25, 2022 | |
Other Information [Abstract] | |
Other Information | OTHER INFORMATION Compensation and other accrued liabilities consist of the following: (Thousands of Dollars) September 25 September 26 Compensation 20,815 20,849 Retirement plans 549 554 Other 23,376 23,673 44,740 45,076 Supplemental cash flow information includes the following cash payments: (Thousands of Dollars) 2022 2021 2020 Interest 41,770 45,214 49,518 Debt financing and reorganization costs — — 707 Income tax payments, net 5,311 7,604 446 Accumulated other comprehensive income (loss), net of deferred income taxes at September 25, 2022, and September 26, 2021, is related to pension and postretirement benefits. |
Commitments and Contingent Liab
Commitments and Contingent Liabilities | 12 Months Ended |
Sep. 25, 2022 | |
Commitments and Contingencies Disclosure [Abstract] | |
Commitments and Contingencies Liabilities | COMMITMENTS AND CONTINGENT LIABILITIES Capital Expenditures At September 25, 2022, we had construction and equipment purchase commitments totaling approximately $3,872,000. Income Taxes Commitments exclude unrecognized tax benefits to be recorded in accordance with ASC Topic 740, Income Taxes. We are unable to reasonably estimate the ultimate amount or timing of cash settlements with the respective taxing authorities for such matters. See Note 14. We file income tax returns with the Internal Revenue Service and various state tax jurisdictions. From time to time, we are subject to routine audits by those agencies, and those audits may result in proposed adjustments. We have considered the alternative interpretations that may be assumed by the various taxing agencies, believe our positions taken regarding our filings are valid, and that adequate tax liabilities have been recorded to resolve such matters. However, the actual outcome cannot be determined with certainty and the difference could be material, either positively or negatively, to the Consolidated Statements of Income and Comprehensive Income (Loss) in the periods in which such matters are ultimately determined. We do not believe the final resolution of such matters will be material to our consolidated financial position or cash flows. We have various income tax examinations ongoing and at various stages of completion, but generally our income tax returns have been audited or closed to audit through 2014. Legal Proceedings We are involved in a variety of legal actions that arise in the normal course of business. Insurance coverage mitigates potential loss for certain of these matters. While we are unable to predict the ultimate outcome of these legal actions, it is our opinion that the disposition of these matters will not have a material adverse effect on our Consolidated Financial Statements, taken as a whole. |
Significant Accounting Polici_2
Significant Accounting Policies (Policies) | 12 Months Ended |
Sep. 25, 2022 | |
Organization, Consolidation and Presentation of Financial Statements [Abstract] | |
Basis of Presentation | The Consolidated Financial Statements include our accounts and those of our subsidiaries, all of which are wholly-owned, except for our 50% interest in TNI, 50% interest in MNI and 82.5% interest in BLOX Digital. TNI and MNI are accounted for under the equity method. Results of BLOX Digital are consolidated. On March 16, 2020, the Company completed the acquisition of BH Media Group, Inc. and The Buffalo News, Inc. for a combined purchase price of $140,000,000 (collectively, the "Transactions"). Certain amounts in prior period Consolidated Financial Statements have been reclassified to conform to the current year presentation. Pursuant to our acquisition of BH Media and Buffalo News, we realigned the presentation of certain home delivery print revenue and certain other Subscription revenue from other revenue to subscription revenue on the Consolidated Statements of Income (loss) and Comprehensive Income (loss). As a result of this updated presentation, subscription revenue increased and other revenue decreased by $828,000 in 2021 and by $2,346,000 in 2020. Operating revenues, net income (loss), accumulated deficit, and earnings per share remain unchanged. In 2021 and 2020, we allocated revenue from our full access subscriptions between print and digital subscription revenues. In 2022, due to the increased prominence of digital-only revenues, we revised this presentation to classify full access subscriptions as print subscription revenue, and discretely present digital-only subscription revenues. 2021 and 2020 amounts were reclassified in Note 4 to conform to the current year presentation. Operating revenues, net income (loss), accumulated deficit, and earnings per share remain unchanged. On February 25, 2021, our Board of Directors declared a one-for-ten split of the Company's common stock (the "Reverse Stock Split"). Effective March 15, 2021 the Company's shares began trading on a post reverse split basis. Prior period results have been adjusted to reflect the Reverse Stock Split in March 2021. The split did not change the Company's Common Stock Par value but changed opening Common Stock and Additional Paid in Capital balances by offsetting amounts. During the year ended September 26, 2021 we identified an error related to pension contributions recorded incorrectly in the year ended September 27, 2020. The error was due to a directional issue whereby pension contributions were reported as operating cash inflows in the statement of cash flows instead of operating cash outflows. Recording this out of period adjustment had no impact to the Consolidated Statements of Income (loss) and Comprehensive Income (loss) for the 52 weeks ended September 26, 2021 and had no impact on the Consolidated Balance Sheet. The correction impacted the Consolidated Statement of Cash Flows. Pension contributions were corrected to a cash outflow of $6,215,000 and the change in pension, postretirement and postemployment benefit obligations have been corrected to a decrease of $2,950,000. Net cash provided by operating activities did not change. We did not believe the impact of the adjustment was material to our consolidated financial statements for any previously issued financial statements taken as a whole. |
Fiscal Year | All of our enterprises use period accounting with the fiscal year ending on the last Sunday in September. References to "2022", "2021", "2020" and the like refer to the fiscal years ended the last Sunday in September. Fiscal years 2022, 2021, and 2020 include 52 weeks of operations. |
Accounting Estimates | The preparation of financial statements in conformity with accounting principles generally accepted in the United States of America ("GAAP") requires us to make estimates and judgments that affect the reported amounts of assets, liabilities, revenue and expenses, and related disclosure of contingent assets and liabilities. We evaluate our estimates, which include estimates used in the valuation of goodwill and intangible assets periodically. We evaluate our estimates used in connection with our business combinations, the discount rate assumptions applied to our pension and postretirement plan obligations, the expected long-term rate of return on plan assets, and the provision for income taxes on an on-going basis. We base our estimates on historical experience and on various other assumptions that are believed to be reasonable under the circumstances, the results of which form the basis for making judgments about the carrying values of assets and liabilities that are not readily apparent from other sources. Actual results may differ from these estimates under different assumptions or conditions. |
Principles of Consolidation | All significant intercompany transactions and balances have been eliminated. |
Cash and Cash Equivalents | We consider all highly liquid debt instruments purchased with an original maturity of three months or less at date of acquisition to be cash equivalents. |
Accounts Receivable | We evaluate our allowance for credit losses based on historical credit experience, payment trends and other economic factors. Accounts considered to be uncollectible are written off. |
Inventories | Newsprint inventories and other inventories are priced at the lower of cost or net realizable value. |
Other Investments | Investments in unconsolidated affiliates over which Lee exercises significant influence, but does not control, are accounted for by the equity method. Under this method, an investment account for each unconsolidated affiliate is increased by contributions made and by Lee's share of net income of the unconsolidated affiliate, and decreased by the share of net losses of and distributions from the unconsolidated affiliate. |
Property and Equipment | Property and equipment are carried at cost. Equipment and all other assets are depreciated using the straight line method. The estimated useful lives are as follows: Years Buildings and improvements 5 - 40 Printing presses and insertion equipment 5 - 25 Leasehold improvements 3 - 10 Other 3 - 15 |
Goodwill and Other Intangible Assets | Intangible assets include customer lists, newspaper subscriber lists and mastheads. Intangible assets subject to amortization are being amortized using the straight-line method except for intangible assets acquired in the Transactions which are being amortized in an accelerated manner consistent with the expected economic benefit. Years Customer lists 10 - 20 Newspaper subscriber lists 10 - 20 We review goodwill and non-amortizing intangible assets, which include only newspaper mastheads, for impairment annually as of the first day of the fiscal fourth quarter, or more frequently in events or changes in circumstances indicate that an asset may be impaired in accordance with FASB Accounting Standards Codification ("ASC") Topic 350, " Intangibles - Goodwill and Other ." Under ASC Topic 350, the impairment test for goodwill and non-amortizing intangible assets must be based on estimated fair values. Impairment would occur when the carrying amount of the reporting unit is greater than its fair value. Companies with reporting units with zero or negative carrying value are required to disclose the amount of goodwill for those reporting units. |
Leases | The Company determines if an arrangement is a lease at inception. Operating leases are included in operating lease right-of-use ("ROU") lease assets, current portion of long-term lease liabilities and operating lease liabilities on the Consolidated Balance Sheets. Finance lease would be included in property, plant and equipment, current portion of long-term debt and long-term debt on the Consolidated Balance Sheets. Amortization of operating lease ROU assets is included in other operating expenses. Amortization of finance leases would be included in depreciation expense. Operating lease ROU assets and operating lease liabilities are recognized based on the present value of the future minimum lease payments over the lease term at commencement date. The ROU asset is adjusted to include lease payments made to date and initial direct costs incurred and to deduct for lease incentives received and impairment recognized. As most of the Company's leases do not provide an implicit rate, We determined the incremental borrowing rate based on a senior secured collateral adjusted yield curve for the Company. This yield curve reflects the estimated rate that would have been paid by the Company to borrow on a collateralized basis over a similar term in a similar economic environment. The lease terms may include options to extend or terminate the lease when it is reasonable certain that the option will be exercised. Lease expense for minimum lease payments is recognized on a straight-line basis over the lease term. Certain lease agreements have lease and non-lease components, which are accounted for together. See Note 8 for additional information related to leases. |
Business Combinations | The Company accounts for acquisitions in accordance with the provisions of ASC Topic 805 - " Business Combinations ", which provides guidance for recognition and measurement of identifiable assets and goodwill acquired, liabilities assumed, and any non-controlling interest in the acquiree at fair value. In a business combination, the assets acquired, liabilities assumed and non-controlling interest in the acquiree are recorded as of the date of acquisition at their respective fair values with limited exceptions. Any excess of the purchase price (consideration transferred) over the estimated fair values of net assets acquired is recorded as goodwill. Transaction costs are expensed as incurred. The operating results of the acquired business are reflected in the Company's Consolidated Financial Statements from the date of acquisition. |
Advertising Costs | |
Pension, Postretirement and Postemployment Benefit Plans | Pension, Postretirement and Postemployment Benefit Plans We evaluate our liabilities for pension, postretirement and postemployment benefit plans based upon computations made by consulting actuaries, incorporating estimates and actuarial assumptions of future plan service costs, future interest costs on projected benefit obligations, rates of compensation increases, when applicable, employee turnover rates, anticipated mortality rates, expected investment returns on plan assets, asset allocation assumptions of plan assets and other factors. We apply a practical expedient under ASC Topic 715, Compensation – Retirement Benefits , which allows us to measure plan assets and benefit obligations using the month-end that is closest to our fiscal year-end. Accordingly, we measure our plan assets and benefit obligations as of September 30, or upon a remeasurement event. We use the alternative spot rate approach which utilizes a full yield curve to estimate the interest cost component of benefit cost by applying the specific spot rates along the yield curve used in the determination of the benefit obligation to the relevant projected cash flows. Multiemployer Pension Plans The Company contributes to a number of multiemployer defined benefit pension plans under the terms of collective-bargaining agreements that cover certain of the Company's union represented employees. The risks of participating in these multiemployer plans are different from single-employer plans in that assets contributed are pooled and may be used to provide benefits to employees of other participating employers. If a participating employer withdraws from or otherwise ceases to contribute to the plan, the unfunded obligations of the plan may be borne by the remaining participating employers. Alternatively, if the Company chooses to stop participating in one of its multiemployer plans, it may incur a withdrawal liability based on its actuarially determined share of the unfunded status of the plan. Contributions made to multiemployer plans are based on collective-bargaining agreements and are accounted for under guidance related to multiemployer plans, which essentially provides that contributions to such plans are expensed when due. Any withdrawal liability would be recognized at the point withdrawal from the plan becomes probable. See Note 10 for additional information. |
Income Taxes | Deferred income tax assets are recognized for deductible temporary differences and loss carryforwards and deferred income tax liabilities are recognized for taxable temporary differences which are the difference between the reported amounts of assets and liabilities and their tax basis. Deferred income tax assets are reduced by a valuation allowance when, in our opinion, it is more likely than not that some portion or all of the deferred income tax assets will not be realized. Deferred income tax assets and liabilities are adjusted for the effects of changes in tax laws and rates on the date of enactment. We recognize the effect of income tax positions only if those positions are more likely than not of being sustained. Recognized income tax positions are measured at the largest amount that is greater than 50% likely of being realized. Changes in recognition or measurement are reflected in the period in which the change in judgment occurs. We record interest and penalties related to unrecognized tax benefits as a component of income tax expense. |
Fair Value of Financial Instruments | We utilize ASC Topic 820 - Fair Value Measurements and Disclosures , to measure and report fair value. ASC Topic 820 defines fair value, establishes a framework for measuring fair value and expands disclosures about fair value measurements. ASC Topic 820 establishes a three-level hierarchy of fair value measurements based on whether the inputs to those measurements are observable or unobservable, which consists of the following levels: Level 1 - Quoted prices for identical instruments in active markets. Level 2 - Quoted prices for similar instruments in active markets; quoted prices for identical or similar instruments in markets that are not active; and model-derived valuations in which all significant inputs are observable in active markets. Level 3 - Valuations derived from valuation techniques in which one or more significant inputs are unobservable. Investments measured at net asset value, as a practical expedient for fair value, are excluded from the fair value hierarchy. Valuation methodologies used for pension and postretirement assets measured at fair value are as follows: Cash and cash equivalents consist of short term deposits valued based on quoted prices in active markets. Such investments are classified as Level 1. Treasury Inflation-Protected Securities ("TIPS") consist of low yield mutual funds and are valued by quoted inactive market prices . Such investments are classified as Level 2. Equity securities are valued based on the closing market price in an active market and are classified as Level 1. Certain investments in commingled funds are valued at the end of the period based upon the value of the underlying investments as determined by quoted market prices. Such investments are classified as Level 2. Certain equity securities are part of a collective investment fund for which there is no readily determinable fair value. This fund is valued at the net asset value of units held at the end of the period based upon the value of the underlying investments, which is determined using multiple approaches including by quoted market prices and by private market quotations. Such investments are excluded from the fair value hierarchy. Debt securities consist of government securities, corporate bonds, and mutual funds. Government securities and corporate bonds are valued based upon quoted market prices in an inactive market. Such investments are classified as Level 2. Mutual funds are valued based upon quoted market prices in an active market. Such investments are classified as Level 1. Hedge funds consist of a long/short equity funds and a diversified fund of funds for which there is no readily determinable fair value. These funds are valued at the net asset value of units held at the end of the period based upon the value of the underlying investments, which is determined using multiple approaches including by quoted market prices and by private market quotations. Such investments are excluded from the fair value hierarchy. |
Stock Compensation and Warrants | Stock Compensation and Warrants We have several stock-based compensation plans. We account for grants under those plans under the fair value expense recognition provisions of ASC Topic 718 - Compensation-Stock Compensation . We determine the fair value of stock options using the Black-Scholes option pricing formula. Key inputs to this formula include expected term, expected volatility and the risk-free interest rate. The expected term represents the period that our stock-based awards are expected to be outstanding, and is determined based on historical experience of similar awards, giving consideration to contractual terms of the awards, vesting schedules and expectations of future employee behavior. The volatility factor is calculated using historical market data for our Common Stock. The time frame used is equal to the expected term. We base the risk-free interest rate on the yield to maturity at the time of the stock option grant on zero-coupon U.S. government bonds having a remaining term equal to the option's expected term. When estimating forfeitures, we consider voluntary termination behavior as well as actual option forfeitures. We amortize as compensation expense the value of stock options and restricted Common Stock using the straight-line method over the requisite service period or restriction period, which is generally one Prior to 2022, we also had 600,000 warrants outstanding to purchase shares of our Common Stock. Warrants were recorded at fair value determined using the Black-Scholes option pricing formula. These warrants expired in 2022. See Notes 7, 12 and 15. |
Uninsured Risks | Uninsured Risks We are self-insured for health care, workers compensation and certain long-term disability costs of our employees, subject to stop loss insurance, which limits our losses in the event of large claims. We accrue our estimated health care costs in the period in which such costs are incurred, including an estimate of incurred but not reported claims. Other risks are insured and carry deductible losses of varying amounts. We have posted cash collateral totaling $4,600,000 at September 25, 2022 in support of our insurance programs recorded under Other on the consolidated balance sheets. Our accrued reserves for health care and workers compensation claims are based upon estimates of the remaining liability for retained losses made by consulting actuaries. The amount of workers compensation reserve has been determined based upon historical patterns of incurred and paid loss development factors from the insurance industry. |
Recently Issued Accounting Standards | Recently Issued Accounting Standards - Standards Adopted in 2022 None Recently Issued Accounting Standards - Standards Adopted in 2021 In June 2016, the FASB issued a new standard ASC Topic 326 Financial Instruments - Credit Losses to replace the incurred loss impairment methodology with a methodology that reflects expected credit losses and requires consideration of a wider array of reasonable and supportable information to inform and develop credit loss estimates. We are required to use a forward-looking expected credit loss model for both accounts receivables and other financial instruments. The new standard was adopted on September 28, 2020, using a modified retrospective approach. This standard did not have a material impact on our Consolidated Financial Statements. In August 2018, the FASB issued Accounting Standards Update ("ASU") 2018-13 Fair Value Measurements that changes disclosure requirements related to fair value measurements as part of the disclosure framework project. The disclosure framework project aims to improve effectiveness of disclosures in the notes to the financial statements by focusing on requirements that clearly communicate the most important information to users of the financial statements. The new guidance was adopted on September 28, 2020, and did not have a material impact on our Consolidated Financial Statements. In December 2019, the FASB issued new guidance that simplifies the accounting for income taxes by eliminating certain exceptions to the guidance in ASC Topic 740 Income Taxes related to the approach for intraperiod tax allocation, the methodology for calculating income taxes in an interim period and the recognition for deferred tax liabilities for outside basis differences. The standard also simplifies aspects of the accounting for franchise taxes and enacted changes in tax laws or rates and clarifies the accounting for transactions that result in a step-up in the tax basis of goodwill. This new guidance was adopted September 28, 2020, and did not have a material impact on our Consolidated Financial Statements. In August 2018, FASB issued ASU 2018-14 Compensation - Retirement Benefits - Defined Benefit Plans to amend disclosure requirements for employers that sponsor defined benefit pension or other postretirement plans. The new standard was adopted on September 28, 2020 using a retrospective approach, and did not have a material impact on our Consolidated Financial Statements. |
Revenue Recognition | Revenue is recognized when a performance obligation is satisfied by the transfer of control of the contracted goods or services to our customers, in an amount that reflects the consideration we expect to receive in exchange for those goods or services. Revenue is recognized when control of the promised goods or services is transferred to customers, in an amount that reflects the consideration the Company expects to be entitled to in exchange for goods or services. Revenues are recognized as performance obligations are satisfied either at a point in time, such as when and advertisement is published, or over time, such as audience subscription revenue. No single customer represented 10% or more of the Company's net revenue in any fiscal period presented. Advertising and marketing services revenue Print advertising revenue includes amounts charged to customers for retail, national, or classified advertising space purchased in our newspapers, advertising marketing services and other print advertising products such as preprint inserts and direct mail. Digital advertising revenue includes amounts advertisements placed on our digital platforms, amounts charged to customers for digital marketing services which include: audience extension, Search Engine Optimization, Search Engine Marketing, web and mobile production, social media services and reputation monitoring and management. Payments for print and digital advertising revenue are due upon completion of our performance obligations at previously agreed upon rates. In instances where the timing of revenue recognition differs from the timing of invoicing, such timing differences are not large. As a result, we have determined that our contracts do not include a significant financing component. Subscription revenue Print subscription revenue results from the sale of print editions of newspapers to individual subscribers and to sales outlets that resell the newspapers. Print subscriptions include full access to all forms of content provided. Single copy revenue is also included in subscription revenue. Subscription revenue from single-copy and home delivery subscriptions are recognized at the point in time the publications are delivered. Digital subscription revenue results from the sale of digital only access to the Company's content delivered via digital products purchased. Digital subscription revenue is recognized over time as performance obligations are met throughout the contract term. Payments for print and digital subscription revenue are typically collected in advance, are for contract periods of one year or less and result in an unearned revenue liability that is reduced when revenue is recognized. Other revenue Other revenue primarily consists of digital services, commercial printing and delivery of third party products. Digital services revenues, which are primarily delivered through BLOX Digital, are primarily comprised of contractual agreements to provide webhosting and content management services. As such, digital services revenue is recognized over the contract period. Prices for digital services are agreed upon in advance of the contract beginning and are typically billed in arrears on a monthly basis, with the exception of implementation fees which are recognized as deferred revenue and amortized over the contract period. Commercial printing and delivery revenue is recognized when the product is delivered to the customer. |
Significant Accounting Polici_3
Significant Accounting Policies (Tables) | 12 Months Ended |
Sep. 25, 2022 | |
Organization, Consolidation and Presentation of Financial Statements [Abstract] | |
Components of Inventory by Cost Method | The components of inventory by cost method are as follows: (Thousands of Dollars) September 25, 2022 September 26, 2021 Newsprint - FIFO method 393 409 Newsprint - LIFO method 447 903 Other inventory - FIFO method 2,219 2,870 Specific identification 5,206 2,115 8,265 6,297 |
Schedule of Property and Equipment | The estimated useful lives are as follows: Years Buildings and improvements 5 - 40 Printing presses and insertion equipment 5 - 25 Leasehold improvements 3 - 10 Other 3 - 15 |
Schedule of Finite-Lived Intangible Assets | Years Customer lists 10 - 20 Newspaper subscriber lists 10 - 20 |
Immaterial Corrections to Pri_2
Immaterial Corrections to Prior Period Financial Statements (Tables) | 12 Months Ended |
Sep. 25, 2022 | |
Accounting Changes and Error Corrections [Abstract] | |
Schedule of Error Corrections and Prior Period Adjustments | The table below sets forth the impact of correcting the error in the Consolidated Statements of Income (loss) and Comprehensive Income (loss). (Thousands of Dollars, Except Per Common Share Data) Year Ended September 26, 2021 Year Ended September 27, 2020 As previously reported Adjustment As Revised As previously reported Adjustment As Revised Income before Income Taxes 32,047 — 32,047 2,843 — 2,843 Income tax expense 7,215 40 7,255 4,104 (1,131) 2,973 Net income (loss) 24,832 (40) 24,792 (1,261) 1,131 (130) (Loss) income attributable to Lee Enterprises, Incorporated 22,785 (40) 22,745 (3,106) 1,131 (1,975) Comprehensive (loss) income attributable to Lee Enterprises, Inc. 85,022 (40) 84,982 5,958 1,131 7,089 Earnings per common share Basic 3.99 (0.01) 3.98 (0.55) 0.20 (0.35) Diluted 3.91 (0.01) 3.90 (0.55) 0.20 (0.35) The table below sets forth the impact of correcting the error in the Consolidated Balance Sheets. (Thousands of Dollars) As of September 26, 2021 As of September 27, 2020 As previously reported Adjustment As Revised As previously reported Adjustment As Revised Liabilities Deferred incomes taxes 40,295 13,468 53,763 15,208 13,428 28,636 Total liabilities 786,853 13,468 800,321 893,690 13,428 907,118 Accumulated deficit (245,744) (13,468) (259,212) (268,529) (13,428) (281,957) Total stockholders' equity (deficit) 54,565 (13,468) 41,097 (31,564) (13,428) (44,992) Total equity (deficit) 56,698 (13,468) 43,230 (29,633) (13,428) (43,061) Total liabilities and stockholders' equity 843,551 — 843,551 864,057 — 864,057 The table below sets forth the impact of correcting the error in the Consolidated Statements of Stockholders' Equity (Deficit) (Thousands of Dollars) Year Ended September 26, 2021 Year Ended September 27, 2020 As previously reported Adjustment As Revised As previously reported Adjustment As Revised Accumulated deficit: Balance, beginning of year (268,529) (13,428) (281,957) (265,423) (14,559) (279,982) Net income (loss) 24,832 (40) 24,792 (1,261) 1,131 (130) Balance, end of year (245,744) (13,468) (259,212) (268,529) (13,428) (281,957) The table below sets forth the impact of correcting the error in the Consolidated Statements of Cash Flows. (Thousands of Dollars) Year Ended September 26, 2021 Year Ended September 27, 2020 As previously reported Adjustment As Revised As previously reported Adjustment As Revised Operating Activities Net income (loss) 24,832 (40) 24,792 (1,261) 1,131 (130) Adjustments to reconcile net income (loss) to net cash provided by operating activities: Deferred income taxes 5,120 40 5,160 (3,560) (1,131) (4,691) Unaudited Interim Financial Information The tables below sets forth the impact of the error correction on the unaudited interim Consolidated Balance Sheets for the interim periods in 2022. The error had no impact on the unaudited interim Consolidated Statements of Income (Loss) and Comprehensive Income (Loss), and Statements of Cash Flows, in the 2022 interim periods. (Thousands of Dollars) As of December 26, 2021 As of March 27, 2022 As previously reported Adjustment As Revised As previously reported Adjustment As Revised Liabilities Deferred incomes taxes 38,957 13,468 52,425 38,397 13,468 51,865 Total liabilities 768,744 13,468 782,212 740,032 13,468 753,500 Accumulated deficit (233,086) (13,468) (246,554) (240,362) (13,468) (253,830) Total stockholders' equity 60,912 (13,468) 47,444 53,129 (13,648) 39,481 Total equity 63,105 (13,468) 49,637 55,369 (13,468) 41,901 Total liabilities and stockholders' equity 831,849 — 831,849 795,401 — 795,401 (Thousands of Dollars) As of June 26, 2022 As previously reported Adjustment As Revised Liabilities Deferred incomes taxes 37,295 13,468 50,763 Total liabilities 740,221 13,468 753,689 Accumulated deficit (240,631) (13,468) (254,099) Total stockholders' equity 52,391 (13,468) 41,147 Total equity 54,615 (13,468) 41,147 Total liabilities and stockholders' equity 794,836 — 794,836 |
Acquisitions (Tables)
Acquisitions (Tables) | 12 Months Ended |
Sep. 25, 2022 | |
Business Combination and Asset Acquisition [Abstract] | |
Schedule of Fair Values of Assets and Liabilities Acquired | The following table summarizes the final determination of fair values of the assets and liabilities for the Transactions. (Thousands of Dollars) Estimated fair value as previously reported (a) Measurement period adjustments Fair value as adjusted Cash and cash equivalents 22,293 — 22,293 Current assets 52,559 (855) 51,704 Other assets 12,167 4,343 16,510 Property and equipment 42,952 33 42,985 Operating lease assets 7,445 101 7,546 Advertiser relationships 38,780 (11,160) 27,620 Subscriber relationships 36,060 (8,210) 27,850 Commercial print relationships 17,130 2,430 19,560 Mastheads 21,680 (1,290) 20,390 Goodwill 63,559 16,337 79,896 Total assets 314,625 1,729 316,354 Current liabilities assumed (73,451) 1,074 (72,377) Operating lease liabilities (6,625) (921) (7,546) Other liabilities assumed (2,246) (1,882) (4,128) Pension obligations (43,503) — (43,503) Postemployment benefit obligations (36,800) — (36,800) Total liabilities (162,625) (1,729) (164,354) Net assets 152,000 — 152,000 Less: acquired cash (22,293) — (22,293) Total consideration less acquired cash 129,707 — 129,707 (a) As previously reported in the Company's Quarterly Report on Form 10-Q for the period ended March 29, 2020. |
Schedule of Pro Forma Information | The following table sets forth unaudited pro forma results of operations assuming the Transactions, along with the credit arrangements necessary to finance the Transactions, occurred on the first day of fiscal year 2020. Unaudited (Thousands of Dollars, Except Per Share Data) September 27, Total revenues 821,793 Income attributable to Lee Enterprises, Incorporated 17,632 Earnings per share - diluted 3.10 |
Revenue (Tables)
Revenue (Tables) | 12 Months Ended |
Sep. 25, 2022 | |
Disaggregation of Revenue [Abstract] | |
Disaggregation of Revenue | The following table presents our revenue disaggregated by source: (Thousands of Dollars) 2022 2021 2020 Operating revenue: Print advertising revenue 184,963 227,892 183,164 Digital advertising revenue 181,465 141,391 106,491 Advertising and marketing services revenue 366,428 369,283 289,655 Print subscription revenue 313,504 329,484 248,913 Digital-only subscription revenue 40,120 28,229 19,372 Subscription Revenue 353,624 357,713 268,285 Print other revenue 42,962 48,656 39,632 Digital other revenue 17,955 18,997 20,432 Other revenue 60,917 67,653 60,064 Total operating revenue 780,969 794,649 618,004 |
Investments in Associated Com_2
Investments in Associated Companies (Tables) | 12 Months Ended |
Sep. 25, 2022 | |
Equity Method Investments and Joint Ventures [Abstract] | |
Schedule of Equity Method Investments | Summarized financial information of TNI is as follows: (Thousands of Dollars) September 25 September 26 ASSETS Current assets 2,801 2,238 Investments and other assets 1,584 1,693 Total assets 4,385 3,931 LIABILITIES AND MEMBERS' EQUITY Current liabilities 5,005 5,027 Members' equity (620) (1,096) Total liabilities and members' equity 4,385 3,931 Summarized results of TNI are as follows: (Thousands of Dollars) 2022 2021 2020 Operating revenue 34,153 34,782 37,101 Operating expenses 25,445 25,320 29,673 Net income 8,708 9,462 7,428 Company's 50% share 4,354 4,731 3,714 Less amortization of intangible assets — — 209 Equity in earnings of TNI 4,354 4,731 3,505 Summarized financial information of MNI is as follows: (Thousands of Dollars) September 25 September 26 ASSETS Current assets 5,837 6,930 Investments and other assets 29,903 30,422 Total assets 35,740 37,352 LIABILITIES AND MEMBERS' EQUITY Current liabilities 5,922 6,921 Other liabilities 5,696 6,470 Stockholders' equity 24,122 23,961 Total liabilities and stockholders' equity 35,740 37,352 Summarized results of MNI are as follows: (Thousands of Dollars) 2022 2021 2020 Operating revenue 47,621 46,015 48,056 Operating expenses, excluding restructuring costs, depreciation and amortization 37,922 35,583 46,845 Restructuring costs 169 107 274 Depreciation and amortization 672 711 697 Operating income 8,857 9,614 240 Net income (loss) 2,605 3,362 (204) Equity in earnings of MNI 1,303 1,681 (102) |
Goodwill and Other Intangible_2
Goodwill and Other Intangible Assets (Tables) | 12 Months Ended |
Sep. 25, 2022 | |
Goodwill and Intangible Assets Disclosure [Abstract] | |
Schedule of Goodwill | Changes in the carrying amount of goodwill are as follows: (Thousands of Dollars) 2022 2021 Goodwill, gross amount 1,618,933 1,617,174 Accumulated impairment losses (1,288,729) (1,288,729) Goodwill, beginning of year 330,204 328,445 Measurement period adjustments — 1,759 Disposal (700) — Goodwill, end of year 329,504 330,204 |
Schedule of Intangible Assets | Identified intangible assets related to continuing operations consist of the following: (Thousands of Dollars) September 25 September 26 Non-amortized intangible assets: Mastheads 26,346 39,672 Amortizable intangible assets: Customer and newspaper subscriber lists (1) 323,568 774,242 Less accumulated amortization (1) (228,541) (657,243) 95,027 116,999 Non-compete and consulting agreements (1) — 28,656 Less accumulated amortization (1) — (28,656) — — Identified intangible assets 121,373 156,671 (1) Fully amortized balances were removed in 2022. |
Asset Impairment Charges | A summary of the pretax impairment charges is included in the table below: (Thousands of Dollars) 2022 2021 2020 Non-amortized intangible assets 14,203 787 972 Property, equipment and other assets — 190 — 14,203 977 972 |
Leases (Tables)
Leases (Tables) | 12 Months Ended |
Sep. 25, 2022 | |
Leases [Abstract] | |
Total Lease Expense | Total lease expense consists of the following: (Thousands of Dollars) 2022 2021 2020 Operating lease costs 13,786 14,846 10,148 Variable lease costs 1,201 92 1,911 Short-term lease costs 217 — 426 Total Operating Lease Expense 15,205 14,938 12,485 Supplemental cash flow information related to our operating leases was as follows: (Thousands of Dollars) 2022 2021 2020 Cash paid for amounts included in the measurement of lease liabilities: Operating cash outflow from operating leases 14,325 14,789 10,003 Right-of-use assets obtained in exchange for operating lease liabilities 990 932 1,630 September 25, 2022 Weighted average remaining lease term (years) 6 years, 7 months, 2 days Weighted Average discount rate 7.99 % |
Schedule of Maturities of Lease Liabilities | As of September 25, 2022, maturities of lease liabilities were as follows: (Thousands of Dollars) 2023 12,921 2024 11,871 2025 10,630 2026 9,187 2027 7,736 Thereafter 18,799 Total lease payments 71,144 Less: interest (17,282) Present value of lease liabilities 53,862 |
Defined Benefit Pension Plans (
Defined Benefit Pension Plans (Tables) | 12 Months Ended |
Sep. 25, 2022 | |
Retirement Benefits [Abstract] | |
Components of Net Periodic Cost (Benefit) | The net periodic cost (benefit) components of our pension plans are as follows: (Thousands of Dollars) 2022 2021 2020 Service cost for benefits earned during the year 467 2,529 1,361 Interest cost on projected benefit obligation 7,941 7,147 7,577 Expected return on plan assets (18,140) (18,688) (12,986) Amortization of net (gain) loss (3,320) 4,018 3,166 Amortization of prior service benefit 636 (6) (6) Settlement gain (4,245) — — Curtailment gain (1,027) — — Net periodic pension cost (benefit) (17,688) (5,000) (888) The net periodic postretirement benefit cost (benefit) components for our postretirement plans are as follows: (Thousands of Dollars) 2022 2021 2020 Service cost for benefits earned during the year 108 207 500 Interest cost on projected benefit obligation 340 429 869 Expected return on plan assets (1,053) (1,007) (1,060) Amortization of net actuarial gain (994) (685) (743) Amortization of prior service benefit (647) (647) (647) Curtailment gains — (23,830) — Net periodic postretirement benefit (2,246) (25,533) (1,081) |
Changes in Benefit Obligations and Plan Assets | Changes in benefit obligations and plan assets are as follows: (Thousands of Dollars) 2022 2021 Benefit obligation, beginning of year 384,187 401,381 Service cost 467 2,529 Interest cost 7,941 7,147 Plan Amendments 6,077 — Actuarial (gain) loss (85,754) (5,413) Benefits paid (21,686) (21,182) Liability (gain)/loss due to curtailment (1,027) — Settlements (81,377) — Administrative expenses paid — (275) Benefit obligation, end of year 208,828 384,187 Fair value of plan assets, beginning of year: 398,430 331,354 Actual return on plan assets (84,000) 89,892 Benefits paid (21,686) (21,182) Administrative expenses paid (2,123) (2,599) Settlements (81,377) — Employer contributions 112 965 Fair value of plan assets, end of year 209,356 398,430 Funded status 528 14,243 Changes in benefit obligations and plan assets are as follows: (Thousands of Dollars) 2022 2021 Benefit obligation, beginning of year 18,538 47,637 Service cost 108 207 Interest cost 340 429 Liability (gain) loss due to Curtailment — (23,830) Actuarial loss (gain) (4,729) (4,285) Benefits paid, net of premiums received (1,958) (1,678) Medicare Part D subsidies (12) 58 Benefit obligation, end of year 12,287 18,538 Fair value of plan assets, beginning of year 26,802 25,706 Actual return on plan assets (2,453) 1,534 Employer contributions 1,525 1,293 Benefits paid, net of premiums and Medicare Part D subsidies received (2,105) (1,795) Plan participant contributions 134 64 Fair value of plan assets at measurement date 23,903 26,802 Funded status 11,616 8,264 |
Schedule of Amounts Recognized in Balance Sheet | Disaggregated amounts recognized in the Consolidated Balance Sheets are as follows: (Thousands of Dollars) September 25 September 26 Pension obligations 528 14,243 Accumulated other comprehensive income (before income taxes) 5,452 36,965 Disaggregated amounts recognized in the Consolidated Balance Sheets are as follows: (Thousands of Dollars) September 25 September 26 Non-current assets 19,066 17,664 Postretirement benefit obligations (7,450) (9,859) Accumulated other comprehensive income (before income tax benefit) 17,327 17,747 |
Schedule of Amounts Recognized in Other Comprehensive Income (Loss) | Amounts recognized in accumulated other comprehensive income (loss) are as follows: (Thousands of Dollars) September 25 September 26 Unrecognized net actuarial gain (loss) 10,893 36,965 Unrecognized prior service cost (5,441) — 5,452 36,965 Amounts recognized in accumulated other comprehensive income (loss) before income tax benefit are as follows: (Thousands of Dollars) September 25 September 26 Unrecognized net actuarial gain 14,298 14,071 Unrecognized prior service benefit 3,029 3,676 17,327 17,747 |
Defined Benefit Plan, Assumptions | Weighted-average assumptions used to determine benefit obligations are as follows: (Percent) September 25 September 26 Discount rate 5.3 2.7 Interest crediting rate 2.5 2.5 Weighted-average assumptions used to determine net periodic benefit cost are as follows: (Percent) 2022 2021 2020 Discount rate - service cost 5.4 3.0 3.3 Discount rate - interest cost 5.3 1.9 2.6 Expected long-term return on plan assets 5.0 5.9 6.0 Weighted-average assumptions used to determine postretirement benefit obligations are as follows: (Percent) September 25 September 26 Discount rate 5.3 2.6 Expected long-term return on plan assets 5.0 4.0 The assumptions related to the expected long-term return on plan assets are developed through an analysis of historical market returns, current market conditions and composition of plan assets. Weighted-average assumptions used to determine net periodic benefit cost are as follows: (Percent) 2022 2021 2020 Discount rate - service cost 5.5 2.5 3.4 Discount rate - interest cost 5.1 1.9 2.8 Expected long-term return on plan assets 5.0 4.0 4.5 |
Schedule of Allocation of Plan Assets | The weighted-average asset allocation of our pension assets, is as follows: (Percent) Policy Allocation Actual Allocation Asset Class September 25 September 25 September 26 Equity securities 25 41 50 Debt securities 65 43 34 TIPS — — 4 Hedge fund investments 10 15 11 Cash and cash equivalents 1 1 1 The weighted-average asset allocation of our postretirement assets is as follows: (Percent) Policy Allocation Actual Allocation Asset Class September 25 2022 September 25 September 26 Equity securities 20 17 20 Debt securities 70 71 68 Hedge fund investment 10 12 12 Cash and cash equivalents — — — |
Schedule of Changes in Fair Value of Plan Assets | The fair value hierarchy of pension assets at September 25, 2022 is as follows: (Thousands of Dollars) NAV Level 1 Level 2 Level 3 Cash and cash equivalents — 1,562 — — Domestic equity securities 2,235 67,661 — — International equity securities — 5,743 4,519 — Emerging equity securities — 4,996 — — Debt securities — 25,742 65,364 — Hedge fund investments 32,515 — — — The fair value hierarchy of pension assets at September 26, 2021 was as follows: (Thousands of Dollars) NAV Level 1 Level 2 Level 3 Cash and cash equivalents — 4,447 — — Domestic equity securities 7,236 78,577 42,448 — International equity securities — 9,485 9,505 — Emerging equity securities — 8,077 — — TIPS — 7,280 — — Debt securities — 181,908 32,781 — Hedge fund investments 18,758 — — — The fair value hierarchy of postretirement assets at September 25, 2022 is as follows: (Thousands of Dollars) NAV Level 1 Level 2 Level 3 Cash and cash equivalents — 26 — — Domestic equity securities 791 1,910 — — Emerging equity securities — 456 — — International equity securities — 573 480 — Debt securities — 17,248 — — Hedge fund investment 2,782 — — — The fair value hierarchy of postretirement assets at September 26, 2021 is as follows: (Thousands of Dollars) NAV Level 1 Level 2 Level 3 Cash and cash equivalents — 25 — — Domestic equity securities 904 2,643 — — Emerging equity securities — 603 — — International equity securities — 747 660 — Debt securities — 18,363 — — Hedge fund investment 3,235 — — — |
Schedule of Defined Benefit Plan Amounts Recognized in Other Comprehensive Income (Loss) | The activity within Other comprehensive income (loss) for both pension plans and postretirement plans was as follows: (Thousands of Dollars) 2022 2021 2020 Comprehensive (loss) income, net of taxes: Change in unrecognized benefit plan gain (loss) arising during the period, net of taxes $279, $19,148, and $4,095, respectively (14,485) 59,663 10,329 Amortization of items to periodic pension and other post-employment benefit costs during the period, net of taxes $6,389, $819, and $542, respectively (11,049) 2,574 (1,265) Other comprehensive (loss) income recognized in operations, net of taxes (25,534) 62,237 9,064 |
Schedule of Expected Benefit Payments | We anticipate future benefit payments to be paid from the pension trust as follows: (Thousands of Dollars) 2023 14,668 2024 14,830 2025 14,947 2026 15,126 2027 15,204 2028-2032 75,362 We anticipate future benefit payments to be paid either with future contributions to the plan or directly from plan assets, as follows: (Thousands of Dollars) Gross Less Medicare Part D Subsidy Net 2023 980 — 980 2024 991 — 991 2025 985 — 985 2026 987 — 987 2027 955 — 955 2028-2032 4,563 — 4,563 |
Postretirement and Postemploy_2
Postretirement and Postemployment Benefits (Tables) | 12 Months Ended |
Sep. 25, 2022 | |
Defined Benefit Plans and Other Postretirement Benefit Plans Disclosures [Abstract] | |
Components of Net Periodic Cost (Benefit) | The net periodic cost (benefit) components of our pension plans are as follows: (Thousands of Dollars) 2022 2021 2020 Service cost for benefits earned during the year 467 2,529 1,361 Interest cost on projected benefit obligation 7,941 7,147 7,577 Expected return on plan assets (18,140) (18,688) (12,986) Amortization of net (gain) loss (3,320) 4,018 3,166 Amortization of prior service benefit 636 (6) (6) Settlement gain (4,245) — — Curtailment gain (1,027) — — Net periodic pension cost (benefit) (17,688) (5,000) (888) The net periodic postretirement benefit cost (benefit) components for our postretirement plans are as follows: (Thousands of Dollars) 2022 2021 2020 Service cost for benefits earned during the year 108 207 500 Interest cost on projected benefit obligation 340 429 869 Expected return on plan assets (1,053) (1,007) (1,060) Amortization of net actuarial gain (994) (685) (743) Amortization of prior service benefit (647) (647) (647) Curtailment gains — (23,830) — Net periodic postretirement benefit (2,246) (25,533) (1,081) |
Changes in Benefit Obligations and Plan Assets | Changes in benefit obligations and plan assets are as follows: (Thousands of Dollars) 2022 2021 Benefit obligation, beginning of year 384,187 401,381 Service cost 467 2,529 Interest cost 7,941 7,147 Plan Amendments 6,077 — Actuarial (gain) loss (85,754) (5,413) Benefits paid (21,686) (21,182) Liability (gain)/loss due to curtailment (1,027) — Settlements (81,377) — Administrative expenses paid — (275) Benefit obligation, end of year 208,828 384,187 Fair value of plan assets, beginning of year: 398,430 331,354 Actual return on plan assets (84,000) 89,892 Benefits paid (21,686) (21,182) Administrative expenses paid (2,123) (2,599) Settlements (81,377) — Employer contributions 112 965 Fair value of plan assets, end of year 209,356 398,430 Funded status 528 14,243 Changes in benefit obligations and plan assets are as follows: (Thousands of Dollars) 2022 2021 Benefit obligation, beginning of year 18,538 47,637 Service cost 108 207 Interest cost 340 429 Liability (gain) loss due to Curtailment — (23,830) Actuarial loss (gain) (4,729) (4,285) Benefits paid, net of premiums received (1,958) (1,678) Medicare Part D subsidies (12) 58 Benefit obligation, end of year 12,287 18,538 Fair value of plan assets, beginning of year 26,802 25,706 Actual return on plan assets (2,453) 1,534 Employer contributions 1,525 1,293 Benefits paid, net of premiums and Medicare Part D subsidies received (2,105) (1,795) Plan participant contributions 134 64 Fair value of plan assets at measurement date 23,903 26,802 Funded status 11,616 8,264 |
Schedule of Amounts Recognized in Balance Sheet | Disaggregated amounts recognized in the Consolidated Balance Sheets are as follows: (Thousands of Dollars) September 25 September 26 Pension obligations 528 14,243 Accumulated other comprehensive income (before income taxes) 5,452 36,965 Disaggregated amounts recognized in the Consolidated Balance Sheets are as follows: (Thousands of Dollars) September 25 September 26 Non-current assets 19,066 17,664 Postretirement benefit obligations (7,450) (9,859) Accumulated other comprehensive income (before income tax benefit) 17,327 17,747 |
Schedule of Amounts Recognized in Other Comprehensive Income (Loss) | Amounts recognized in accumulated other comprehensive income (loss) are as follows: (Thousands of Dollars) September 25 September 26 Unrecognized net actuarial gain (loss) 10,893 36,965 Unrecognized prior service cost (5,441) — 5,452 36,965 Amounts recognized in accumulated other comprehensive income (loss) before income tax benefit are as follows: (Thousands of Dollars) September 25 September 26 Unrecognized net actuarial gain 14,298 14,071 Unrecognized prior service benefit 3,029 3,676 17,327 17,747 |
Defined Benefit Plan, Assumptions | Weighted-average assumptions used to determine benefit obligations are as follows: (Percent) September 25 September 26 Discount rate 5.3 2.7 Interest crediting rate 2.5 2.5 Weighted-average assumptions used to determine net periodic benefit cost are as follows: (Percent) 2022 2021 2020 Discount rate - service cost 5.4 3.0 3.3 Discount rate - interest cost 5.3 1.9 2.6 Expected long-term return on plan assets 5.0 5.9 6.0 Weighted-average assumptions used to determine postretirement benefit obligations are as follows: (Percent) September 25 September 26 Discount rate 5.3 2.6 Expected long-term return on plan assets 5.0 4.0 The assumptions related to the expected long-term return on plan assets are developed through an analysis of historical market returns, current market conditions and composition of plan assets. Weighted-average assumptions used to determine net periodic benefit cost are as follows: (Percent) 2022 2021 2020 Discount rate - service cost 5.5 2.5 3.4 Discount rate - interest cost 5.1 1.9 2.8 Expected long-term return on plan assets 5.0 4.0 4.5 |
Schedule of Health Care Cost Trend Rates | Assumed health care cost trend rates are as follows: (Percent) September 25 September 26 Health care cost trend rates 10.6 6.2 Rate to which the cost trend rate is assumed to decline (the “Ultimate Trend Rate”) 4.5 4.5 Year in which the rate reaches the Ultimate Trend Rate 2032 2030 |
Schedule of Allocation of Plan Assets | The weighted-average asset allocation of our pension assets, is as follows: (Percent) Policy Allocation Actual Allocation Asset Class September 25 September 25 September 26 Equity securities 25 41 50 Debt securities 65 43 34 TIPS — — 4 Hedge fund investments 10 15 11 Cash and cash equivalents 1 1 1 The weighted-average asset allocation of our postretirement assets is as follows: (Percent) Policy Allocation Actual Allocation Asset Class September 25 2022 September 25 September 26 Equity securities 20 17 20 Debt securities 70 71 68 Hedge fund investment 10 12 12 Cash and cash equivalents — — — |
Schedule of Changes in Fair Value of Plan Assets | The fair value hierarchy of pension assets at September 25, 2022 is as follows: (Thousands of Dollars) NAV Level 1 Level 2 Level 3 Cash and cash equivalents — 1,562 — — Domestic equity securities 2,235 67,661 — — International equity securities — 5,743 4,519 — Emerging equity securities — 4,996 — — Debt securities — 25,742 65,364 — Hedge fund investments 32,515 — — — The fair value hierarchy of pension assets at September 26, 2021 was as follows: (Thousands of Dollars) NAV Level 1 Level 2 Level 3 Cash and cash equivalents — 4,447 — — Domestic equity securities 7,236 78,577 42,448 — International equity securities — 9,485 9,505 — Emerging equity securities — 8,077 — — TIPS — 7,280 — — Debt securities — 181,908 32,781 — Hedge fund investments 18,758 — — — The fair value hierarchy of postretirement assets at September 25, 2022 is as follows: (Thousands of Dollars) NAV Level 1 Level 2 Level 3 Cash and cash equivalents — 26 — — Domestic equity securities 791 1,910 — — Emerging equity securities — 456 — — International equity securities — 573 480 — Debt securities — 17,248 — — Hedge fund investment 2,782 — — — The fair value hierarchy of postretirement assets at September 26, 2021 is as follows: (Thousands of Dollars) NAV Level 1 Level 2 Level 3 Cash and cash equivalents — 25 — — Domestic equity securities 904 2,643 — — Emerging equity securities — 603 — — International equity securities — 747 660 — Debt securities — 18,363 — — Hedge fund investment 3,235 — — — |
Schedule of Expected Benefit Payments | We anticipate future benefit payments to be paid from the pension trust as follows: (Thousands of Dollars) 2023 14,668 2024 14,830 2025 14,947 2026 15,126 2027 15,204 2028-2032 75,362 We anticipate future benefit payments to be paid either with future contributions to the plan or directly from plan assets, as follows: (Thousands of Dollars) Gross Less Medicare Part D Subsidy Net 2023 980 — 980 2024 991 — 991 2025 985 — 985 2026 987 — 987 2027 955 — 955 2028-2032 4,563 — 4,563 |
Other Retirement Plans (Tables)
Other Retirement Plans (Tables) | 12 Months Ended |
Sep. 25, 2022 | |
Retirement Benefits [Abstract] | |
Multiemployer Plan Information | Information related to these plans is outlined in the table below: (Thousands of Dollars) Zone Status Funding Improvement Contributions Pension Plan 2022 2021 Status 2022 2021 2020 Surcharge Imposed EIN Expiration Dates of GCIU- Employer Retirement Fund Critical Red Implemented — 10 87 No 91-6024903 N/A (1) District No. 9, International Association of Machinists and Aerospace Workers Pension Trust Endangered Red Implemented — 15 31 N/A 51-0138317 N/A (1) CWA/ITU negotiated Pension Plan Critical Red Implemented — 81 456 No 13-6212879 N/A (1) IAM National Pension Fund Green Red N/A 57 67 86 N/A 51-6031295 1/1/2024 Operating Engineers Central Pension Fund of the International Union of Operating Engineers and Participating Employers (2) Green Green N/A 50 49 52 N/A 36-6052390 2/28/2023 |
Stock Ownership Plans (Tables)
Stock Ownership Plans (Tables) | 12 Months Ended |
Sep. 25, 2022 | |
Share-Based Payment Arrangement [Abstract] | |
Summary of Stock Option Activity | A summary of stock option activity is as follows: (Thousands of Shares) 2022 2021 2020 Outstanding, beginning of year 36 41 81 Exercised (9) (2) — Canceled (27) (3) (40) Outstanding, end of year — 36 41 Exercisable, end of year — 36 41 |
Weighted Average Prices of Stock Options | Weighted average prices of stock options are as follows: (Dollars) 2022 2021 2020 Exercised 11.30 11.30 — Cancelled 11.30 11.30 25.30 Outstanding, end of year — 11.40 11.40 |
Summary of Restricted Common Stock | A summary of restricted Common Stock activity follows: (Thousands of Shares) 2022 2021 2020 Outstanding, beginning of year 154 155 148 Granted 78 46 72 Vested (66) (45) (61) Forfeited (1) (2) (4) Outstanding, end of year 165 154 155 Weighted average grant date fair values of restricted Common Stock are as follows: (Dollars) 2022 2021 2020 Outstanding, beginning of year 16.70 21.50 24.90 Granted 30.01 11.20 16.20 Vested 20.93 27.30 23.40 Forfeited 23.60 16.10 24.40 Outstanding, end of year 21.21 16.70 21.50 |
Income Taxes (Tables)
Income Taxes (Tables) | 12 Months Ended |
Sep. 25, 2022 | |
Income Tax Disclosure [Abstract] | |
Schedule of Components of Income Tax Expense (Benefit) | Income tax expense (benefit) consists of the following: (Thousands of Dollars) 2022 2021 2020 Current: Federal 4,932 (2,431) 8,779 State 142 3,642 (10) Deferred (4,376) 6,044 (5,796) 698 7,255 2,973 |
Schedule of Effective Income Tax Rate Reconciliation | Income tax (benefit) expense related to operations differs from the amounts computed by applying the U.S. federal income tax rate to income (loss) before income taxes. The reasons for these differences are as follows: (Percent of (Loss) Income Before Income Taxes) 2022 2021 2020 Computed “expected” income tax expense 21.0 21.0 21.0 State income tax benefit, net of federal tax benefit (8.9) 5.6 21.7 Net income of associated companies (77.2) (1.8) (18.3) Resolution of tax matters (32.2) 3.2 (30.5) Remeasurement due to rate changes (11.2) 0.1 (31.0) Non-deductible expenses 124.0 0.9 19.4 Provision to return adjustment 70.2 — — Valuation allowance 11.9 (6.0) 125.2 Wage credit, net addback (7.5) — — Warrant valuation (1.9) (0.4) (7.3) Other — — 4.4 88.2 22.6 104.6 |
Schedule of Deferred Tax Assets and Liabilities | Net deferred income tax liabilities consist of the following components: (Thousands of Dollars) September 25 September 26 Deferred income tax liabilities: Property and equipment (11,712) (13,284) Identified intangible assets (21,649) (27,543) ASC 842 - Leases DTL (11,308) (15,813) Pension and postretirement benefits — (6,346) Investments (26,489) (14,823) (71,158) (77,809) Deferred income tax assets: Allowance for credit losses 802 237 Pension and postretirement benefits 3,445 — Long-term debt 161 716 Interest deduction limitation 4,809 — Operating loss carryforwards 26,224 26,999 ASC 842 - Leases DTA 13,112 15,840 Accrued compensation 1,914 6,630 Accrued expenses 1,663 443 Other 2,964 812 55,094 51,677 Valuation allowance (26,655) (27,631) Net deferred income tax liabilities (42,719) (53,763) |
Schedule of Unrecognized Tax Benefits Roll Forward | A reconciliation of 2022 and 2021 changes in gross unrecognized tax benefits is as follows: (Thousands of Dollars) 2022 2021 Balance, beginning of year 18,279 27,008 Changes in tax positions for prior years (307) 1,008 Increases (decrease) in tax positions for the current year 1,887 (8,940) Lapse in statute of limitations (1,617) (797) Balance, end of year 18,242 18,279 |
Fair Value of Financial Instr_2
Fair Value of Financial Instruments (Tables) | 12 Months Ended |
Sep. 25, 2022 | |
Fair Value Disclosures [Abstract] | |
Fair Value of Warrants, Valuation Techniques | The following assumptions were used to estimate the fair value of the Warrants: 2022 2021 2020 Volatility (Percent) — 43 84 Risk-free interest rate (Percent) — 0.05 0.12 Expected term (Years) — 0.5 1.5 Estimated fair value (Dollars) — 0.12 0.06 |
Earnings Per Common Share (Tabl
Earnings Per Common Share (Tables) | 12 Months Ended |
Sep. 25, 2022 | |
Earnings Per Share [Abstract] | |
Schedule of Earnings Per Share, Basic and Diluted | The following table sets forth the computation of basic and diluted earnings per common share: (Thousands of Dollars and Shares, Except Per Common Share Data) 2022 2021 2020 (Loss) income attributable to Lee Enterprises, Incorporated: (2,017) 22,745 (1,975) Weighted average Common Stock 5,946 5,873 5,811 Less non-vested restricted Common Stock (167) (156) (154) Basic average Common Stock 5,778 5,717 5,657 Dilutive stock options and restricted Common Stock — 109 37 Diluted average Common Stock 5,778 5,826 5,694 Earnings per common share: Basic: (0.35) 3.98 (0.35) Diluted (0.35) 3.90 (0.35) |
Allowance for Credit Losses (Ta
Allowance for Credit Losses (Tables) | 12 Months Ended |
Sep. 25, 2022 | |
Allowance for Credit Loss [Abstract] | |
Schedule of Allowance for Credit Losses | Valuation and qualifying account information related to the allowance for credit losses related to continuing operations is as follows: (Thousands of Dollars) 2022 2021 2020 Balance, beginning of year 6,574 13,431 6,434 Additions charged to expense 5,190 1,505 8,607 Deductions from reserves (6,527) (8,362) (1,610) Balance, end of year 5,237 6,574 13,431 |
Other Information (Tables)
Other Information (Tables) | 12 Months Ended |
Sep. 25, 2022 | |
Other Information [Abstract] | |
Schedule of Accrued Liabilities | Compensation and other accrued liabilities consist of the following: (Thousands of Dollars) September 25 September 26 Compensation 20,815 20,849 Retirement plans 549 554 Other 23,376 23,673 44,740 45,076 |
Schedule of Cash Flow, Supplemental Disclosures | Supplemental cash flow information includes the following cash payments: (Thousands of Dollars) 2022 2021 2020 Interest 41,770 45,214 49,518 Debt financing and reorganization costs — — 707 Income tax payments, net 5,311 7,604 446 |
Significant Accounting Polici_4
Significant Accounting Policies - Narrative (Details) shares in Thousands, $ in Thousands | 12 Months Ended | ||||
Feb. 25, 2021 | Mar. 16, 2020 USD ($) | Sep. 25, 2022 USD ($) strategicBusinessUnit | Sep. 26, 2021 USD ($) shares | Sep. 27, 2020 USD ($) | |
Noncontrolling Interest [Line Items] | |||||
Increase (decrease) in operating revenue | $ 780,969 | $ 794,649 | $ 618,004 | ||
Payment of pension contributions | 112 | 965 | 6,215 | ||
Decrease in pension, postretirement and postemployment benefit obligations | 21,449 | 2,667 | 2,950 | ||
Inventory, LIFO reserve | $ 1,448 | $ 988 | |||
Number of strategic business units | strategicBusinessUnit | 50 | ||||
Warrants outstanding (in shares) | shares | 600 | ||||
Cash collateral for insurance | $ 4,600 | ||||
Reverse Stock Split | |||||
Noncontrolling Interest [Line Items] | |||||
Reverse stock split | 0.1 | ||||
Minimum | |||||
Noncontrolling Interest [Line Items] | |||||
Vesting or restriction period (in years) | 1 year | ||||
Maximum | |||||
Noncontrolling Interest [Line Items] | |||||
Vesting or restriction period (in years) | 4 years | ||||
Leasehold improvements | Minimum | |||||
Noncontrolling Interest [Line Items] | |||||
Property and equipment, useful life (months) | 3 years | ||||
Leasehold improvements | Maximum | |||||
Noncontrolling Interest [Line Items] | |||||
Property and equipment, useful life (months) | 10 years | ||||
BHMG | |||||
Noncontrolling Interest [Line Items] | |||||
Combined purchase price | $ 140,000 | ||||
Subscription | |||||
Noncontrolling Interest [Line Items] | |||||
Increase (decrease) in operating revenue | $ 353,624 | $ 357,713 | 268,285 | ||
Subscription | Reclassified Other Revenue to Subscription Revenue | |||||
Noncontrolling Interest [Line Items] | |||||
Increase (decrease) in operating revenue | 828 | 2,346 | |||
Other | |||||
Noncontrolling Interest [Line Items] | |||||
Increase (decrease) in operating revenue | $ 60,917 | 67,653 | 60,064 | ||
Other | Reclassified Other Revenue to Subscription Revenue | |||||
Noncontrolling Interest [Line Items] | |||||
Increase (decrease) in operating revenue | $ (828) | $ (2,346) | |||
TNI Partners | |||||
Noncontrolling Interest [Line Items] | |||||
Noncontrolling interest, ownership percentage by parent | 50% | ||||
MNI | |||||
Noncontrolling Interest [Line Items] | |||||
Noncontrolling interest, ownership percentage by parent | 50% | ||||
BLOX Digital | |||||
Noncontrolling Interest [Line Items] | |||||
Noncontrolling interest, ownership percentage by parent | 82.50% |
Significant Accounting Polici_5
Significant Accounting Policies - Components of Inventory (Details) - USD ($) $ in Thousands | Sep. 25, 2022 | Sep. 26, 2021 |
Inventory [Line Items] | ||
Specific identification | $ 5,206 | $ 2,115 |
Inventories | 8,265 | 6,297 |
Newsprint | ||
Inventory [Line Items] | ||
FIFO method | 393 | 409 |
LIFO method | 447 | 903 |
Other Inventory | ||
Inventory [Line Items] | ||
FIFO method | $ 2,219 | $ 2,870 |
Significant Accounting Polici_6
Significant Accounting Policies - Estimated Useful Lives of Property and Equipment (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Sep. 25, 2022 | Sep. 26, 2021 | Sep. 27, 2020 | |
Property, Plant and Equipment [Line Items] | |||
Depreciation Expense | $ 14,365 | $ 17,982 | $ 15,385 |
Buildings and improvements | Minimum | |||
Property, Plant and Equipment [Line Items] | |||
Property and equipment, useful life (years) | 5 years | ||
Buildings and improvements | Maximum | |||
Property, Plant and Equipment [Line Items] | |||
Property and equipment, useful life (years) | 40 years | ||
Printing presses and insertion equipment | Minimum | |||
Property, Plant and Equipment [Line Items] | |||
Property and equipment, useful life (years) | 5 years | ||
Printing presses and insertion equipment | Maximum | |||
Property, Plant and Equipment [Line Items] | |||
Property and equipment, useful life (years) | 25 years | ||
Leasehold improvements | Minimum | |||
Property, Plant and Equipment [Line Items] | |||
Property and equipment, useful life (years) | 3 years | ||
Leasehold improvements | Maximum | |||
Property, Plant and Equipment [Line Items] | |||
Property and equipment, useful life (years) | 10 years | ||
Other | Minimum | |||
Property, Plant and Equipment [Line Items] | |||
Property and equipment, useful life (years) | 3 years | ||
Other | Maximum | |||
Property, Plant and Equipment [Line Items] | |||
Property and equipment, useful life (years) | 15 years |
Significant Accounting Polici_7
Significant Accounting Policies - Intangible Assets Amortization Period (Details) | 12 Months Ended |
Sep. 25, 2022 | |
Minimum | Customer lists | |
Finite-Lived Intangible Assets [Line Items] | |
Finite-lived intangible asset, useful life | 10 years |
Minimum | Newspaper subscriber lists | |
Finite-Lived Intangible Assets [Line Items] | |
Finite-lived intangible asset, useful life | 10 years |
Maximum | Customer lists | |
Finite-Lived Intangible Assets [Line Items] | |
Finite-lived intangible asset, useful life | 20 years |
Maximum | Newspaper subscriber lists | |
Finite-Lived Intangible Assets [Line Items] | |
Finite-lived intangible asset, useful life | 20 years |
Immaterial Corrections to Pri_3
Immaterial Corrections to Prior Period Financial Statements - Narrative (Details) - USD ($) $ in Thousands | Sep. 25, 2022 | Jun. 26, 2022 | Mar. 27, 2022 | Dec. 26, 2021 | Sep. 26, 2021 | Sep. 27, 2020 | Sep. 29, 2019 |
Error Corrections and Prior Period Adjustments Restatement [Line Items] | |||||||
Accumulated deficit | $ (261,229) | $ (254,099) | $ (253,830) | $ (246,554) | $ (259,212) | $ (281,957) | |
Deferred income taxes | $ 42,719 | 50,763 | 51,865 | 52,425 | 53,763 | 28,636 | |
Adjustment | |||||||
Error Corrections and Prior Period Adjustments Restatement [Line Items] | |||||||
Accumulated deficit | (13,468) | (13,468) | (13,468) | (13,468) | (13,428) | $ (14,559) | |
Deferred income taxes | $ 13,468 | $ 13,468 | $ 13,468 | $ 13,468 | $ 13,428 | $ 14,559 |
Immaterial Corrections to Pri_4
Immaterial Corrections to Prior Period Financial Statements - Consolidated Statement of Income (loss) and Comprehensive Income (Loss) (Details) - USD ($) $ / shares in Units, $ in Thousands | 12 Months Ended | ||
Sep. 25, 2022 | Sep. 26, 2021 | Sep. 27, 2020 | |
Error Corrections and Prior Period Adjustments Restatement [Line Items] | |||
Income before Income Taxes | $ 795 | $ 32,047 | $ 2,843 |
Income tax expense | 698 | 7,255 | 2,973 |
Net income (loss) | 97 | 24,792 | (130) |
(Loss) income attributable to Lee Enterprises, Incorporated: | (2,017) | 22,745 | (1,975) |
Comprehensive (loss) income attributable to Lee Enterprises, Inc. | $ (27,551) | $ 84,982 | $ 7,089 |
Earnings per common share | |||
Basic (in dollars per share) | $ (0.35) | $ 3.98 | $ (0.35) |
Diluted (in dollars per share) | $ (0.35) | $ 3.90 | $ (0.35) |
As previously reported | |||
Error Corrections and Prior Period Adjustments Restatement [Line Items] | |||
Income before Income Taxes | $ 32,047 | $ 2,843 | |
Income tax expense | 7,215 | 4,104 | |
Net income (loss) | 24,832 | (1,261) | |
(Loss) income attributable to Lee Enterprises, Incorporated: | 22,785 | (3,106) | |
Comprehensive (loss) income attributable to Lee Enterprises, Inc. | $ 85,022 | $ 5,958 | |
Earnings per common share | |||
Basic (in dollars per share) | $ 3.99 | $ (0.55) | |
Diluted (in dollars per share) | $ 3.91 | $ (0.55) | |
Adjustment | |||
Error Corrections and Prior Period Adjustments Restatement [Line Items] | |||
Income before Income Taxes | $ 0 | $ 0 | |
Income tax expense | 40 | (1,131) | |
Net income (loss) | (40) | 1,131 | |
(Loss) income attributable to Lee Enterprises, Incorporated: | (40) | 1,131 | |
Comprehensive (loss) income attributable to Lee Enterprises, Inc. | $ (40) | $ 1,131 | |
Earnings per common share | |||
Basic (in dollars per share) | $ (0.01) | $ 0.20 | |
Diluted (in dollars per share) | $ (0.01) | $ 0.20 |
Immaterial Corrections to Pri_5
Immaterial Corrections to Prior Period Financial Statements - Consolidated Balance Sheets (Details) - USD ($) $ in Thousands | Sep. 25, 2022 | Jun. 26, 2022 | Mar. 27, 2022 | Dec. 26, 2021 | Sep. 26, 2021 | Sep. 27, 2020 | Sep. 29, 2019 |
Liabilities | |||||||
Deferred income taxes | $ 42,719 | $ 50,763 | $ 51,865 | $ 52,425 | $ 53,763 | $ 28,636 | |
Total liabilities | 726,805 | 753,689 | 753,500 | 782,212 | 800,321 | 907,118 | |
Accumulated deficit | (261,229) | (254,099) | (253,830) | (246,554) | (259,212) | (281,957) | |
Total stockholders' equity (deficit) | 15,005 | 41,147 | 39,481 | 47,444 | 41,097 | (44,992) | |
Total equity (deficit) | 17,237 | 41,147 | 41,901 | 49,637 | 43,230 | (43,061) | |
Total liabilities and stockholders' equity | $ 744,042 | 794,836 | 795,401 | 831,849 | 843,551 | 864,057 | |
As previously reported | |||||||
Liabilities | |||||||
Deferred income taxes | 37,295 | 38,397 | 38,957 | 40,295 | 15,208 | ||
Total liabilities | 740,221 | 740,032 | 768,744 | 786,853 | 893,690 | ||
Accumulated deficit | (240,631) | (240,362) | (233,086) | (245,744) | (268,529) | ||
Total stockholders' equity (deficit) | 52,391 | 53,129 | 60,912 | 54,565 | (31,564) | ||
Total equity (deficit) | 54,615 | 55,369 | 63,105 | 56,698 | (29,633) | ||
Total liabilities and stockholders' equity | 794,836 | 795,401 | 831,849 | 843,551 | 864,057 | ||
Adjustment | |||||||
Liabilities | |||||||
Deferred income taxes | 13,468 | 13,468 | 13,468 | 13,468 | 13,428 | $ 14,559 | |
Total liabilities | 13,468 | 13,468 | 13,468 | 13,468 | 13,428 | ||
Accumulated deficit | (13,468) | (13,468) | (13,468) | (13,468) | (13,428) | $ (14,559) | |
Total stockholders' equity (deficit) | (13,468) | (13,648) | (13,468) | (13,468) | (13,428) | ||
Total equity (deficit) | (13,468) | (13,468) | (13,468) | (13,468) | (13,428) | ||
Total liabilities and stockholders' equity | $ 0 | $ 0 | $ 0 | $ 0 | $ 0 |
Immaterial Corrections to Pri_6
Immaterial Corrections to Prior Period Financial Statements - Consolidated Statements of Stockholders' Equity (Deficit) (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Sep. 25, 2022 | Sep. 26, 2021 | Sep. 27, 2020 | |
Increase (Decrease) in Stockholders' Equity [Roll Forward] | |||
Beginning Balance | $ 41,097 | $ (44,992) | |
Net income (loss) | 97 | 24,792 | $ (130) |
Ending Balance | 15,005 | 41,097 | (44,992) |
As previously reported | |||
Increase (Decrease) in Stockholders' Equity [Roll Forward] | |||
Beginning Balance | 54,565 | (31,564) | |
Net income (loss) | 24,832 | (1,261) | |
Ending Balance | 54,565 | (31,564) | |
Adjustment | |||
Increase (Decrease) in Stockholders' Equity [Roll Forward] | |||
Beginning Balance | (13,468) | (13,428) | |
Net income (loss) | (40) | 1,131 | |
Ending Balance | (13,468) | (13,428) | |
Accumulated deficit | |||
Increase (Decrease) in Stockholders' Equity [Roll Forward] | |||
Beginning Balance | (259,212) | (281,957) | (279,982) |
Net income (loss) | 97 | 24,792 | (130) |
Ending Balance | (261,229) | (259,212) | (281,957) |
Accumulated deficit | As previously reported | |||
Increase (Decrease) in Stockholders' Equity [Roll Forward] | |||
Beginning Balance | (245,744) | (268,529) | (265,423) |
Net income (loss) | 24,832 | (1,261) | |
Ending Balance | (245,744) | (268,529) | |
Accumulated deficit | Adjustment | |||
Increase (Decrease) in Stockholders' Equity [Roll Forward] | |||
Beginning Balance | $ (13,468) | (13,428) | (14,559) |
Net income (loss) | (40) | 1,131 | |
Ending Balance | $ (13,468) | $ (13,428) |
Immaterial Corrections to Pri_7
Immaterial Corrections to Prior Period Financial Statements - Consolidated Statement of Cash Flows (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Sep. 25, 2022 | Sep. 26, 2021 | Sep. 27, 2020 | |
Operating Activities | |||
Net income (loss) | $ 97 | $ 24,792 | $ (130) |
Adjustments to reconcile net income (loss) to net cash provided by operating activities: | |||
Deferred income taxes | $ (4,377) | 5,160 | (4,691) |
As previously reported | |||
Operating Activities | |||
Net income (loss) | 24,832 | (1,261) | |
Adjustments to reconcile net income (loss) to net cash provided by operating activities: | |||
Deferred income taxes | 5,120 | (3,560) | |
Adjustment | |||
Operating Activities | |||
Net income (loss) | (40) | 1,131 | |
Adjustments to reconcile net income (loss) to net cash provided by operating activities: | |||
Deferred income taxes | $ 40 | $ (1,131) |
Immaterial Corrections to Pri_8
Immaterial Corrections to Prior Period Financial Statements - Unaudited Interim Financial Information (Details) - USD ($) $ in Thousands | Sep. 25, 2022 | Jun. 26, 2022 | Mar. 27, 2022 | Dec. 26, 2021 | Sep. 26, 2021 | Sep. 27, 2020 | Sep. 29, 2019 |
Liabilities | |||||||
Deferred income taxes | $ 42,719 | $ 50,763 | $ 51,865 | $ 52,425 | $ 53,763 | $ 28,636 | |
Total liabilities | 726,805 | 753,689 | 753,500 | 782,212 | 800,321 | 907,118 | |
Accumulated deficit | (261,229) | (254,099) | (253,830) | (246,554) | (259,212) | (281,957) | |
Total stockholders' equity (deficit) | 15,005 | 41,147 | 39,481 | 47,444 | 41,097 | (44,992) | |
Total equity (deficit) | 17,237 | 41,147 | 41,901 | 49,637 | 43,230 | (43,061) | |
Total liabilities and stockholders' equity | $ 744,042 | 794,836 | 795,401 | 831,849 | 843,551 | 864,057 | |
As previously reported | |||||||
Liabilities | |||||||
Deferred income taxes | 37,295 | 38,397 | 38,957 | 40,295 | 15,208 | ||
Total liabilities | 740,221 | 740,032 | 768,744 | 786,853 | 893,690 | ||
Accumulated deficit | (240,631) | (240,362) | (233,086) | (245,744) | (268,529) | ||
Total stockholders' equity (deficit) | 52,391 | 53,129 | 60,912 | 54,565 | (31,564) | ||
Total equity (deficit) | 54,615 | 55,369 | 63,105 | 56,698 | (29,633) | ||
Total liabilities and stockholders' equity | 794,836 | 795,401 | 831,849 | 843,551 | 864,057 | ||
Adjustment | |||||||
Liabilities | |||||||
Deferred income taxes | 13,468 | 13,468 | 13,468 | 13,468 | 13,428 | $ 14,559 | |
Total liabilities | 13,468 | 13,468 | 13,468 | 13,468 | 13,428 | ||
Accumulated deficit | (13,468) | (13,468) | (13,468) | (13,468) | (13,428) | $ (14,559) | |
Total stockholders' equity (deficit) | (13,468) | (13,648) | (13,468) | (13,468) | (13,428) | ||
Total equity (deficit) | (13,468) | (13,468) | (13,468) | (13,468) | (13,428) | ||
Total liabilities and stockholders' equity | $ 0 | $ 0 | $ 0 | $ 0 | $ 0 |
Acquisitions - Narrative (Detai
Acquisitions - Narrative (Details) $ in Thousands | 12 Months Ended | 18 Months Ended | ||||
Mar. 16, 2020 USD ($) property newspaper printProduct | Dec. 29, 2019 USD ($) | Sep. 25, 2022 USD ($) | Sep. 26, 2021 USD ($) | Sep. 27, 2020 USD ($) | Sep. 26, 2021 USD ($) | |
Business Acquisition [Line Items] | ||||||
Operating lease right-of-use assets | $ 47,490 | $ 65,682 | $ 65,682 | |||
Present value of lease liabilities | 53,862 | |||||
Net income | (2,017) | $ 22,745 | $ (1,975) | |||
BHMG | ||||||
Business Acquisition [Line Items] | ||||||
Combined purchase price | $ 140,000 | |||||
Number of daily newspapers and digital operations | newspaper | 30 | |||||
Number of paid weekly newspapers with websites | newspaper | 49 | |||||
Number of other print products | printProduct | 32 | |||||
Business combination, termination of contract, credits | $ 5,425 | |||||
Business combination, termination of contract, credits, pro-rated fixed portion | 1,245 | |||||
Business combination, termination of contract, credit, pro-rated variable fees | $ 4,180 | |||||
Settlement of existing contract asset balance | $ 3,589 | |||||
Number of leased properties | property | 68 | |||||
Annual rent | $ 8,000 | |||||
Percentage of net consideration | 8% | |||||
Amount of monthly rent credits | 166 | |||||
Amount of current annual rent | $ 6,004 | |||||
Operating lease right-of-use assets | $ 56,226 | |||||
Present value of lease liabilities | $ 56,226 | |||||
Business combination accrued liabilities adjustment | (634) | |||||
Business combination uncertain tax position allowance adjustment | (138) | |||||
Business combination workers compensation and medical reserve adjustment | (3,600) | |||||
BHMG | Advertiser relationships | ||||||
Business Acquisition [Line Items] | ||||||
Measurement period adjustments, intangibles | (11,160) | |||||
BHMG | Subscriber relationships | ||||||
Business Acquisition [Line Items] | ||||||
Measurement period adjustments, intangibles | (8,210) | |||||
BHMG | Commercial print relationships | ||||||
Business Acquisition [Line Items] | ||||||
Measurement period adjustments, intangibles | 2,430 | |||||
BHMG | Acquisition-related costs | ||||||
Business Acquisition [Line Items] | ||||||
Net income | $ 8,973 | |||||
BHMG | Revision of prior period, adjustment | Advertiser relationships | ||||||
Business Acquisition [Line Items] | ||||||
Measurement period adjustments, intangibles | (11,160) | |||||
BHMG | Revision of prior period, adjustment | Subscriber relationships | ||||||
Business Acquisition [Line Items] | ||||||
Measurement period adjustments, intangibles | (8,210) | |||||
BHMG | Revision of prior period, adjustment | Commercial print relationships | ||||||
Business Acquisition [Line Items] | ||||||
Measurement period adjustments, intangibles | $ 2,430 |
Acquisitions - Preliminary Dete
Acquisitions - Preliminary Determination of Fair Values of Assets and Liabilities (Details) - USD ($) $ in Thousands | 12 Months Ended | 18 Months Ended | 24 Months Ended | ||||
Mar. 29, 2020 | Sep. 25, 2022 | Sep. 26, 2021 | Sep. 27, 2020 | Sep. 26, 2021 | Sep. 26, 2021 | Mar. 16, 2020 | |
Business Acquisition [Line Items] | |||||||
Goodwill | $ 329,504 | $ 330,204 | $ 328,445 | $ 330,204 | $ 330,204 | $ 79,896 | |
Goodwill, measurement period adjustments | 0 | 1,759 | |||||
Total consideration less acquired cash | 0 | 0 | $ 130,985 | ||||
BHMG | |||||||
Business Acquisition [Line Items] | |||||||
Cash and cash equivalents | $ 22,293 | 22,293 | 22,293 | 22,293 | |||
Current assets | 52,559 | 51,704 | 51,704 | 51,704 | |||
Measurement period adjustments, current assets | (855) | ||||||
Other assets | 12,167 | 16,510 | 16,510 | 16,510 | |||
Measurement period adjustments, other assets | 4,343 | ||||||
Property and equipment | 42,952 | 42,985 | 42,985 | 42,985 | |||
Measurement period adjustments, property and equipment | 33 | ||||||
Operating lease assets | 7,445 | 7,546 | 7,546 | 7,546 | |||
Measurement period adjustments, lease assets | 101 | ||||||
Goodwill | 63,559 | 79,896 | 79,896 | 79,896 | |||
Goodwill, measurement period adjustments | 16,337 | ||||||
Total assets | 314,625 | 316,354 | 316,354 | 316,354 | |||
Measurement period adjustments, assets | 1,729 | ||||||
Current liabilities assumed | (73,451) | (72,377) | (72,377) | (72,377) | |||
Measurement period adjustments, current liabilities assumed | 1,074 | ||||||
Operating lease liabilities | (6,625) | (7,546) | (7,546) | (7,546) | |||
Measurement period adjustments, operating lease liabilities | (921) | ||||||
Other liabilities assumed | (2,246) | (4,128) | (4,128) | (4,128) | |||
Measurement period adjustments, other liabilities assumed | (1,882) | ||||||
Pension obligations | (43,503) | (43,503) | (43,503) | (43,503) | |||
Postemployment benefit obligations | (36,800) | (36,800) | (36,800) | (36,800) | |||
Total liabilities | (162,625) | (164,354) | (164,354) | (164,354) | |||
Measurement period adjustments, total liabilities | (1,729) | ||||||
Net assets | 152,000 | 152,000 | 152,000 | 152,000 | |||
Less: acquired cash | (22,293) | (22,293) | |||||
Total consideration less acquired cash | 129,707 | 129,707 | |||||
BHMG | Mastheads | |||||||
Business Acquisition [Line Items] | |||||||
Measurement period adjustments, intangibles | (1,290) | ||||||
Mastheads | 21,680 | 20,390 | 20,390 | 20,390 | 20,390 | ||
BHMG | Advertiser relationships | |||||||
Business Acquisition [Line Items] | |||||||
Finite-lived intangibles | 38,780 | 27,620 | 27,620 | 27,620 | 27,620 | ||
Measurement period adjustments, intangibles | (11,160) | ||||||
BHMG | Subscriber relationships | |||||||
Business Acquisition [Line Items] | |||||||
Finite-lived intangibles | 36,060 | 27,850 | 27,850 | 27,850 | 27,850 | ||
Measurement period adjustments, intangibles | (8,210) | ||||||
BHMG | Commercial print relationships | |||||||
Business Acquisition [Line Items] | |||||||
Finite-lived intangibles | $ 17,130 | $ 19,560 | $ 19,560 | 19,560 | $ 19,560 | ||
Measurement period adjustments, intangibles | $ 2,430 |
Acquisitions - Pro Forma Inform
Acquisitions - Pro Forma Information (Details) - BHMG $ / shares in Units, $ in Thousands | 12 Months Ended |
Sep. 27, 2020 USD ($) $ / shares | |
Business Acquisition [Line Items] | |
Total revenues | $ 821,793 |
Income attributable to Lee Enterprises, Incorporated | $ 17,632 |
Earnings per share - diluted (in dollars per share) | $ / shares | $ 3.10 |
Revenue - Disaggregation of Rev
Revenue - Disaggregation of Revenue (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Sep. 25, 2022 | Sep. 26, 2021 | Sep. 27, 2020 | |
Operating revenue: | |||
Operating revenue | $ 780,969 | $ 794,649 | $ 618,004 |
Advertising and marketing services revenue | |||
Operating revenue: | |||
Operating revenue | 366,428 | 369,283 | 289,655 |
Advertising and marketing services revenue | Print | |||
Operating revenue: | |||
Operating revenue | 184,963 | 227,892 | 183,164 |
Advertising and marketing services revenue | Digital | |||
Operating revenue: | |||
Operating revenue | 181,465 | 141,391 | 106,491 |
Subscription Revenue | |||
Operating revenue: | |||
Operating revenue | 353,624 | 357,713 | 268,285 |
Subscription Revenue | Print | |||
Operating revenue: | |||
Operating revenue | 313,504 | 329,484 | 248,913 |
Subscription Revenue | Digital | |||
Operating revenue: | |||
Operating revenue | 40,120 | 28,229 | 19,372 |
Other revenue | |||
Operating revenue: | |||
Operating revenue | 60,917 | 67,653 | 60,064 |
Other revenue | Print | |||
Operating revenue: | |||
Operating revenue | 42,962 | 48,656 | 39,632 |
Other revenue | Digital | |||
Operating revenue: | |||
Operating revenue | $ 17,955 | $ 18,997 | $ 20,432 |
Revenue - Narrative (Details)
Revenue - Narrative (Details) - USD ($) $ in Thousands | 24 Months Ended | |||
Sep. 26, 2021 | Sep. 25, 2022 | Sep. 27, 2020 | Sep. 29, 2019 | |
Disaggregation of Revenue [Abstract] | ||||
Unearned revenue | $ 61,404 | $ 49,929 | ||
Revenue recognized included in contract liability | 54,739 | |||
Accounts receivable, before allowance for credit loss | 71,644 | 74,759 | ||
Accounts receivable, allowance for credit loss | $ 6,574 | $ 5,237 | $ 13,431 | $ 6,434 |
Investments in Associated Com_3
Investments in Associated Companies - Summarized Financial Information (Details) - USD ($) $ in Thousands | 12 Months Ended | |||||
Sep. 25, 2022 | Sep. 26, 2021 | Sep. 27, 2020 | Jun. 26, 2022 | Mar. 27, 2022 | Dec. 26, 2021 | |
ASSETS | ||||||
Current assets | $ 109,123 | $ 108,799 | ||||
Total assets | 744,042 | 843,551 | ||||
LIABILITIES AND MEMBERS' EQUITY | ||||||
Current liabilities | 131,136 | 141,624 | ||||
Members' equity | 15,005 | 41,097 | $ (44,992) | $ 41,147 | $ 39,481 | $ 47,444 |
Total liabilities and members' equity | 744,042 | 843,551 | 864,057 | $ 794,836 | $ 795,401 | $ 831,849 |
Operating revenue | 780,969 | 794,649 | 618,004 | |||
Operating expenses | 761,775 | 744,505 | 571,129 | |||
Restructuring costs and other | 22,720 | 7,182 | 13,751 | |||
Operating income | 24,851 | 56,556 | 50,278 | |||
Net income | (2,017) | 22,745 | (1,975) | |||
Less amortization of intangible assets | 22,180 | 24,859 | 20,748 | |||
Equity in earnings | 5,657 | 6,412 | 3,403 | |||
TNI Partners | ||||||
LIABILITIES AND MEMBERS' EQUITY | ||||||
Company's 50% share | 4,354 | 4,731 | 3,714 | |||
Less amortization of intangible assets | 0 | 0 | 209 | |||
Equity in earnings | 4,354 | 4,731 | 3,505 | |||
MNI | ||||||
LIABILITIES AND MEMBERS' EQUITY | ||||||
Equity in earnings | 1,303 | 1,681 | (102) | |||
TNI Partners | ||||||
ASSETS | ||||||
Current assets | 2,801 | 2,238 | ||||
Investments and other assets | 1,584 | 1,693 | ||||
Total assets | 4,385 | 3,931 | ||||
LIABILITIES AND MEMBERS' EQUITY | ||||||
Current liabilities | 5,005 | 5,027 | ||||
Members' equity | (620) | (1,096) | ||||
Total liabilities and members' equity | 4,385 | 3,931 | ||||
Operating revenue | 34,153 | 34,782 | 37,101 | |||
Operating expenses | 25,445 | 25,320 | 29,673 | |||
Net income | 8,708 | 9,462 | 7,428 | |||
MNI | ||||||
ASSETS | ||||||
Current assets | 5,837 | 6,930 | ||||
Investments and other assets | 29,903 | 30,422 | ||||
Total assets | 35,740 | 37,352 | ||||
LIABILITIES AND MEMBERS' EQUITY | ||||||
Current liabilities | 5,922 | 6,921 | ||||
Other liabilities | 5,696 | 6,470 | ||||
Members' equity | 24,122 | 23,961 | ||||
Total liabilities and members' equity | 35,740 | 37,352 | ||||
Operating revenue | 47,621 | 46,015 | 48,056 | |||
Operating expenses | 37,922 | 35,583 | 46,845 | |||
Restructuring costs and other | 169 | 107 | 274 | |||
Depreciation and amortization | 672 | 711 | 697 | |||
Operating income | 8,857 | 9,614 | 240 | |||
Net income | $ 2,605 | $ 3,362 | $ (204) |
Investments in Associated Com_4
Investments in Associated Companies - Summarized Financial Information (Parentheticals) (Details) | Sep. 25, 2022 | Sep. 26, 2021 | Sep. 27, 2020 |
TNI Partners | |||
Schedule of Equity Method Investments [Line Items] | |||
Percentage of share | 50% | 50% | 50% |
Investments in Associated Com_5
Investments in Associated Companies - Narrative (Details) - USD ($) $ in Thousands | 12 Months Ended | |||
Sep. 25, 2022 | Sep. 26, 2021 | Sep. 27, 2020 | Mar. 16, 2020 | |
Schedule of Equity Method Investments [Line Items] | ||||
Equity method investments | $ 27,378 | $ 26,682 | ||
Goodwill | 329,504 | 330,204 | $ 328,445 | $ 79,896 |
Editorial service costs | 344,905 | 325,597 | 259,382 | |
TNI Partners | ||||
Schedule of Equity Method Investments [Line Items] | ||||
Distributions from equity method investments | $ 3,831 | 5,150 | 3,176 | |
Equity method investments, ownership percentage | 50% | |||
Equity method investments | $ 15,345 | 14,702 | ||
Goodwill | 12,366 | |||
Other intangible assets | 2,336 | |||
TNI Partners | Editorial Services | ||||
Schedule of Equity Method Investments [Line Items] | ||||
Editorial service costs | 5,164 | 4,520 | 4,904 | |
MNI | ||||
Schedule of Equity Method Investments [Line Items] | ||||
Distributions from equity method investments | $ 1,250 | $ 2,300 | 1,300 | |
Equity method investments, ownership percentage | 50% | 50% | ||
Equity method investments | $ 12,033 | $ 11,980 | ||
Editorial service fees | $ 5,607 | $ 5,562 | $ 6,152 |
Goodwill and Other Intangible_3
Goodwill and Other Intangible Assets - Changes in the Carrying Amount of Goodwill (Details) $ in Thousands | 12 Months Ended | |
Sep. 25, 2022 USD ($) | Sep. 26, 2021 USD ($) | |
Goodwill and Intangible Assets Disclosure [Abstract] | ||
Goodwill, gross amount | $ 1,618,933 | $ 1,617,174 |
Accumulated impairment losses | (1,288,729) | (1,288,729) |
Goodwill [Roll Forward] | ||
Goodwill, beginning of year | 330,204 | 328,445 |
Measurement period adjustments | 0 | 1,759 |
Disposal | (700) | 0 |
Goodwill, end of year | $ 329,504 | $ 330,204 |
Goodwill and Other Intangible_4
Goodwill and Other Intangible Assets - Identified Intangible Assets (Details) - USD ($) $ in Thousands | Sep. 25, 2022 | Sep. 26, 2021 |
Non-amortized intangible assets: | ||
Mastheads | $ 26,346 | $ 39,672 |
Amortizable intangible assets: | ||
Other intangible assets, net | 121,373 | 156,671 |
Customer and Newspaper Subscriber Lists | ||
Amortizable intangible assets: | ||
Amortizable intangible assets, gross | 323,568 | 774,242 |
Less accumulated amortization | (228,541) | (657,243) |
Amortizable intangibles assets, net | 95,027 | 116,999 |
Non-Compete and Consulting Agreements | ||
Amortizable intangible assets: | ||
Amortizable intangible assets, gross | 0 | 28,656 |
Less accumulated amortization | $ 0 | $ (28,656) |
Goodwill and Other Intangible_5
Goodwill and Other Intangible Assets - Narrative (Details) $ in Thousands | 3 Months Ended | 12 Months Ended | |||||
Sep. 25, 2022 USD ($) | Dec. 26, 2021 USD ($) | Sep. 25, 2022 USD ($) | Sep. 26, 2021 USD ($) | Sep. 27, 2020 USD ($) | Mar. 29, 2020 USD ($) | Mar. 16, 2020 USD ($) | |
Finite-Lived Intangible Assets [Line Items] | |||||||
Impairment, Intangible Asset, Finite-Lived, Statement of Income or Comprehensive Income [Extensible Enumeration] | Gain (Loss) on Disposition of Property Plant Equipment | ||||||
Goodwill attributable to the disposition of non-core operation | $ 700 | $ 0 | |||||
Decrease in royalty rates | 5,000% | 5,000% | |||||
Non-amortized intangible assets | $ 14,203 | 787 | $ 972 | ||||
Increase in discount rate | 10,000% | 10,000% | |||||
Amortization expense | $ 22,180 | 24,859 | 20,748 | ||||
Annual amortization of intangible assets, year one | $ 19,370 | 19,370 | |||||
Annual amortization of intangible assets, year two | 16,623 | 16,623 | |||||
Annual amortization of intangible assets, year three | 10,917 | 10,917 | |||||
Annual amortization of intangible assets, year four | 7,040 | 7,040 | |||||
Annual amortization of intangible assets, year five | 5,072 | $ 5,072 | |||||
Weighted average amortization period (in years) | 12 years 6 months | ||||||
Goodwill | 329,504 | $ 329,504 | $ 330,204 | $ 328,445 | $ 79,896 | ||
Amount of Goodwill expected to be tax deductible | $ 42,442 | 42,442 | |||||
Estimating Using Royalty Rate | |||||||
Finite-Lived Intangible Assets [Line Items] | |||||||
Non-amortized intangible assets | 6,992 | ||||||
Estimating Using Discount Rate | |||||||
Finite-Lived Intangible Assets [Line Items] | |||||||
Non-amortized intangible assets | $ 257 | ||||||
Minimum | Measurement Input, Royalty Rate | |||||||
Finite-Lived Intangible Assets [Line Items] | |||||||
Intangible assets, measurement input | 0 | 0 | |||||
Minimum | Measurement Input, Discount Rate | |||||||
Finite-Lived Intangible Assets [Line Items] | |||||||
Intangible assets, measurement input | 0.0950 | 0.0950 | |||||
Maximum | Measurement Input, Royalty Rate | |||||||
Finite-Lived Intangible Assets [Line Items] | |||||||
Intangible assets, measurement input | 0.015 | 0.015 | |||||
Maximum | Measurement Input, Discount Rate | |||||||
Finite-Lived Intangible Assets [Line Items] | |||||||
Intangible assets, measurement input | 0.1100 | 0.1100 | 0.1050 | ||||
Customer and Newspaper Subscriber Lists | |||||||
Finite-Lived Intangible Assets [Line Items] | |||||||
Write off of gross cost and accumulated amortization | $ 251,100 | $ 199,900 | |||||
Non-Compete and Consulting Agreements | |||||||
Finite-Lived Intangible Assets [Line Items] | |||||||
Write off of gross cost and accumulated amortization | $ 28,700 | ||||||
BHMG | |||||||
Finite-Lived Intangible Assets [Line Items] | |||||||
Goodwill | $ 79,896 | $ 63,559 | |||||
BHMG | Mastheads | |||||||
Finite-Lived Intangible Assets [Line Items] | |||||||
Indefinite-lived masthead assets | 20,390 | $ 20,390 | 20,390 | 21,680 | |||
BHMG | Advertiser relationships | |||||||
Finite-Lived Intangible Assets [Line Items] | |||||||
Finite-lived intangibles | 27,620 | 27,620 | 27,620 | 38,780 | |||
BHMG | Subscriber relationships | |||||||
Finite-Lived Intangible Assets [Line Items] | |||||||
Finite-lived intangibles | 27,850 | 27,850 | 27,850 | 36,060 | |||
BHMG | Commercial print relationships | |||||||
Finite-Lived Intangible Assets [Line Items] | |||||||
Finite-lived intangibles | $ 19,560 | $ 19,560 | $ 19,560 | $ 17,130 |
Goodwill and Other Intangible_6
Goodwill and Other Intangible Assets - Pretax Impairment Charges (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Sep. 25, 2022 | Sep. 26, 2021 | Sep. 27, 2020 | |
Goodwill and Intangible Assets Disclosure [Abstract] | |||
Non-amortized intangible assets | $ 14,203 | $ 787 | $ 972 |
Property, equipment and other assets | 0 | 190 | 0 |
Pretax impairment charges | $ 14,203 | $ 977 | $ 972 |
Impairment, Intangible Asset, Indefinite-Lived (Excluding Goodwill), Statement of Income or Comprehensive Income [Extensible Enumeration] | Gain (Loss) on Disposition of Property Plant Equipment | Gain (Loss) on Disposition of Property Plant Equipment | Gain (Loss) on Disposition of Property Plant Equipment |
Impairment, Long-Lived Asset, Held-for-Use, Statement of Income or Comprehensive Income [Extensible Enumeration] | Gain (Loss) on Disposition of Property Plant Equipment | Gain (Loss) on Disposition of Property Plant Equipment | Gain (Loss) on Disposition of Property Plant Equipment |
Debt - Narrative (Details)
Debt - Narrative (Details) - USD ($) $ / shares in Units, shares in Thousands, $ in Thousands | 12 Months Ended | ||||
Mar. 16, 2020 | Mar. 31, 2014 | Sep. 25, 2022 | Sep. 26, 2021 | Sep. 27, 2020 | |
Debt Instrument [Line Items] | |||||
Long-term debt | $ 431,502 | ||||
Principal payments on long term borrowings | $ 20,062 | $ 55,674 | $ 37,710 | ||
Principal repayments on long term borrowings due to sale of non-core assets | 10,450 | ||||
Principal repayments on long term borrowings due to excess cash flow | 6,112 | ||||
Voluntary principal repayments on long term borrowings | 3,500 | ||||
Amortization of debt financing costs | $ 9,583 | $ 11,282 | |||
Liquidity | 16,185 | ||||
Warrants Issued in Connection with Second Lien Term Loan | |||||
Debt Instrument [Line Items] | |||||
Class of warrant or right, number of securities called by warrants or rights (in shares) | 600 | ||||
Warrants, when fully exercised, percentage of common stock outstanding | 10.10% | ||||
Class of warrant or right, exercise price of warrants or rights (in dollars per share) | $ 41.90 | ||||
Warrants and rights outstanding | $ 16,930 | ||||
Credit Agreement | Secured Term Loan | BH Finance | |||||
Debt Instrument [Line Items] | |||||
Long-term debt | $ 462,554 | ||||
Fixed interest rate | 9% | ||||
Debt instrument, covenant, percent of net cash proceeds of property in excess of $500,000 in 90 days | 100% | ||||
Debt instrument, covenant, net cash proceeds threshold for term loan prepayment | $ 500 | ||||
Debt instrument, covenant, excess cash flow threshold for term loan prepayment | $ 20,000 | ||||
Debt instrument, covenant, excess cash flow, period after quarter end (days) | 50 days | ||||
Debt instrument, covenant, change of control, repayment percentage | 105% | ||||
Senior Secured Notes | |||||
Debt Instrument [Line Items] | |||||
Debt financing costs | $ 37,819 | ||||
BHMG | |||||
Debt Instrument [Line Items] | |||||
Combined purchase price | $ 140,000 |
Leases - Narrative (Details)
Leases - Narrative (Details) $ in Thousands | 12 Months Ended |
Sep. 25, 2022 USD ($) | |
Lessee, Lease, Description [Line Items] | |
Number of leases terminated during period | 14 |
Impairment loss for right-of-use assets | $ 7,815 |
Minimum | |
Lessee, Lease, Description [Line Items] | |
Lessee, operating lease, remaining lease term (year) | 1 year |
Maximum | |
Lessee, Lease, Description [Line Items] | |
Lessee, operating lease, remaining lease term (year) | 40 years |
Leases - Lease Expense (Details
Leases - Lease Expense (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Sep. 25, 2022 | Sep. 26, 2021 | Sep. 27, 2020 | |
Leases [Abstract] | |||
Operating lease costs | $ 13,786 | $ 14,846 | $ 10,148 |
Variable lease costs | 1,201 | 92 | 1,911 |
Short-term lease costs | 217 | 0 | 426 |
Total Operating Lease Expense | $ 15,205 | $ 14,938 | $ 12,485 |
Weighted average remaining lease term (years) | 6 years 7 months 2 days | ||
Weighted Average discount rate | 7.99% |
Leases - Supplemental Cash Flow
Leases - Supplemental Cash Flow Information (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Sep. 25, 2022 | Sep. 26, 2021 | Sep. 27, 2020 | |
Leases [Abstract] | |||
Operating cash outflow from operating leases | $ 14,325 | $ 14,789 | $ 10,003 |
Right-of-use assets obtained in exchange for operating lease liabilities | $ 990 | $ 932 | $ 1,630 |
Leases - Maturities of Lease Li
Leases - Maturities of Lease Liabilities (Details) $ in Thousands | Sep. 25, 2022 USD ($) |
Leases [Abstract] | |
2023 | $ 12,921 |
2024 | 11,871 |
2025 | 10,630 |
2026 | 9,187 |
2027 | 7,736 |
Thereafter | 18,799 |
Total lease payments | 71,144 |
Less: interest | (17,282) |
Present value of lease liabilities | $ 53,862 |
Defined Benefit Pension Plans -
Defined Benefit Pension Plans - Narrative (Details) | 1 Months Ended | 12 Months Ended | |||
Sep. 26, 2021 USD ($) plan | Sep. 25, 2022 USD ($) plan | Sep. 25, 2022 USD ($) plan | Sep. 26, 2021 USD ($) plan | Sep. 27, 2020 | |
Defined Benefit Plan Disclosure [Line Items] | |||||
Number of defined benefit plans | plan | 7 | 2 | 2 | 7 | |
Defined benefit plans, number of plans frozen | plan | 2 | 4 | |||
Defined benefit plan, number of frozen plans merged | plan | 6 | ||||
Number of fully-funded defined benefit plans | plan | 1 | 1 | |||
Accumulated Defined Benefit Plans Adjustment Including Portion Attributable to Noncontrolling Interest | |||||
Defined Benefit Plan Disclosure [Line Items] | |||||
Decrease to accumulated other comprehensive income due to plan enhancements | $ 6,077,000 | ||||
Pension Plan | |||||
Defined Benefit Plan Disclosure [Line Items] | |||||
Non-cash curtailment gain | 1,027,000 | $ 0 | |||
Increase to net pension liability due to plan enhancements | 6,077,000 | 0 | |||
Decrease in plan liabilities due to purchase of annuities | $ 85,622,000 | ||||
Increase in defined benefit plan assets | 81,377,000 | $ 81,377,000 | $ 0 | ||
Settlement income charge | 4,245,000 | ||||
Assumptions used calculating net periodic benefit cost, expected long-term rate of return on plan assets | 5% | 5.90% | 6% | ||
Expected future employer contributions, next fiscal year | 0 | $ 0 | |||
Defined benefit plan accrued liability | $ 14,243,000 | 528,000 | 528,000 | $ 14,243,000 | |
Pension Plan | U.S. Small Cap Value Equity Common/Collective Fund | |||||
Defined Benefit Plan Disclosure [Line Items] | |||||
Investment in equity securities measured at fair value, recognized in net income | 7,236,000 | 2,235,000 | 2,235,000 | 7,236,000 | |
Pension Plan | Global Equity Long/Short Common/Collective Hedge Fund-of-funds | |||||
Defined Benefit Plan Disclosure [Line Items] | |||||
Investment in equity securities measured at fair value, recognized in net income | 8,371,000 | $ 16,663,000 | $ 16,663,000 | 8,371,000 | |
Maximum percentage of equity investment redeemable | 0.90 | 0.90 | |||
Pension Plan | Global Equity Long/Short Common/Collective Hedge Fund-of-funds | Minimum | |||||
Defined Benefit Plan Disclosure [Line Items] | |||||
Notice for redemption of equity investment | 90 days | 90 days | |||
Pension Plan | Global Equity Long/Short Common/Collective Hedge Fund-of-funds | Maximum | |||||
Defined Benefit Plan Disclosure [Line Items] | |||||
Notice for redemption of equity investment | 120 days | 120 days | |||
Pension Plan | Global Equity Long/Short Common/Collective Hedge Fund-of-funds 2 | |||||
Defined Benefit Plan Disclosure [Line Items] | |||||
Investment in equity securities measured at fair value, recognized in net income | 10,387,000 | $ 15,852,000 | $ 15,852,000 | 10,387,000 | |
Maximum percentage of equity investment redeemable | 0.50 | 0.50 | |||
Other Pension Plan | |||||
Defined Benefit Plan Disclosure [Line Items] | |||||
Defined benefit plan accrued liability | $ 996,000 | $ 967,000 | $ 967,000 | $ 996,000 |
Defined Benefit Pension Plans_2
Defined Benefit Pension Plans - Net Periodic Cost (Benefit) (Details) - Pension Plan - USD ($) $ in Thousands | 12 Months Ended | ||
Sep. 25, 2022 | Sep. 26, 2021 | Sep. 27, 2020 | |
Defined Benefit Plan Disclosure [Line Items] | |||
Service cost for benefits earned during the year | $ 467 | $ 2,529 | $ 1,361 |
Interest cost on projected benefit obligation | 7,941 | 7,147 | 7,577 |
Expected return on plan assets | (18,140) | (18,688) | (12,986) |
Amortization of net (gain) loss | (3,320) | 4,018 | 3,166 |
Amortization of prior service benefit | 636 | (6) | (6) |
Settlement gain | (4,245) | 0 | 0 |
Curtailment gain | (1,027) | 0 | 0 |
Net periodic pension cost (benefit) | $ (17,688) | $ (5,000) | $ (888) |
Defined Benefit Pension Plans_3
Defined Benefit Pension Plans - Benefit Obligations and Plan Assets (Details) - Pension Plan - USD ($) $ in Thousands | 1 Months Ended | 12 Months Ended | ||
Sep. 25, 2022 | Sep. 25, 2022 | Sep. 26, 2021 | Sep. 27, 2020 | |
Defined Benefit Plan, Change in Benefit Obligation [Roll Forward] | ||||
Benefit obligation, beginning of year | $ 384,187 | $ 401,381 | ||
Service cost | 467 | 2,529 | $ 1,361 | |
Interest cost | 7,941 | 7,147 | 7,577 | |
Plan Amendments | 6,077 | 0 | ||
Actuarial (gain) loss | (85,754) | (5,413) | ||
Benefits paid | (21,686) | (21,182) | ||
Liability (gain)/loss due to curtailment | (1,027) | 0 | ||
Settlements | $ (81,377) | (81,377) | 0 | |
Administrative expenses paid | 0 | (275) | ||
Benefit obligation, end of year | 208,828 | 208,828 | 384,187 | 401,381 |
Defined Benefit Plan, Change in Fair Value of Plan Assets [Roll Forward] | ||||
Fair value of plan assets, beginning of year: | 398,430 | 331,354 | ||
Actual return on plan assets | (84,000) | 89,892 | ||
Benefits paid | (21,686) | (21,182) | ||
Administrative expenses paid | (2,123) | (2,599) | ||
Settlements | (81,377) | 0 | ||
Employer contributions | 112 | 965 | ||
Fair value of plan assets, end of year | 209,356 | 209,356 | 398,430 | $ 331,354 |
Funded status | $ 528 | $ 528 | $ 14,243 |
Defined Benefit Pension Plans_4
Defined Benefit Pension Plans - Amounts Recognized in the Consolidated Balance Sheets (Details) - USD ($) $ in Thousands | Sep. 25, 2022 | Sep. 26, 2021 |
Defined Benefit Plan Disclosure [Line Items] | ||
Accumulated other comprehensive income (before income taxes) | $ 5,452 | $ 36,965 |
Pension Plan | ||
Defined Benefit Plan Disclosure [Line Items] | ||
Pension obligations | $ 528 | $ 14,243 |
Defined Benefit Pension Plans_5
Defined Benefit Pension Plans - Amounts Recognized in Accumulated Other Comprehensive Income (Loss) (Details) - USD ($) $ in Thousands | 12 Months Ended | |
Sep. 25, 2022 | Sep. 26, 2021 | |
Defined Benefit Plan Disclosure [Line Items] | ||
Unrecognized net actuarial gain (loss) | $ 10,893 | $ 36,965 |
Pension Plan | ||
Defined Benefit Plan Disclosure [Line Items] | ||
Unrecognized prior service cost | (5,441) | 0 |
Amounts recognized in accumulated other comprehensive income (loss) | $ 5,452 | $ 36,965 |
Defined Benefit Pension Plans_6
Defined Benefit Pension Plans - Weighted-Average Assumptions (Details) | 12 Months Ended | ||
Sep. 25, 2022 | Sep. 26, 2021 | Sep. 27, 2020 | |
Defined Benefit Plan Disclosure [Line Items] | |||
Interest crediting rate | 2.50% | 2.50% | |
Pension Plan | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Discount rate | 5.30% | 2.70% | |
Discount rate - service cost | 5.40% | 3% | 3.30% |
Discount rate - interest cost | 5.30% | 1.90% | 2.60% |
Expected long-term return on plan assets | 5% | 5.90% | 6% |
Defined Benefit Pension Plans_7
Defined Benefit Pension Plans - Allocation of Benefit Plan Assets (Details) - Pension Plan | Sep. 25, 2022 | Sep. 26, 2021 |
Equity securities | ||
Defined Benefit Plan Disclosure [Line Items] | ||
Policy Allocation, percentage | 25% | |
Actual Allocation, percentage | 41% | 50% |
Debt securities | ||
Defined Benefit Plan Disclosure [Line Items] | ||
Policy Allocation, percentage | 65% | |
Actual Allocation, percentage | 43% | 34% |
TIPS | ||
Defined Benefit Plan Disclosure [Line Items] | ||
Policy Allocation, percentage | 0% | |
Actual Allocation, percentage | 0% | 4% |
Hedge fund investments | ||
Defined Benefit Plan Disclosure [Line Items] | ||
Policy Allocation, percentage | 10% | |
Actual Allocation, percentage | 15% | 11% |
Cash and cash equivalents | ||
Defined Benefit Plan Disclosure [Line Items] | ||
Policy Allocation, percentage | 1% | |
Actual Allocation, percentage | 1% | 1% |
Defined Benefit Pension Plans_8
Defined Benefit Pension Plans - Fair Value Hierarchy of Benefit Plan Assets (Details) - USD ($) $ in Thousands | Sep. 25, 2022 | Sep. 26, 2021 | Sep. 27, 2020 |
NAV | Hedge fund investments | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Pension assets | $ 32,515 | $ 3,235 | |
Level 1 | Hedge fund investments | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Pension assets | 0 | 0 | |
Level 2 | Hedge fund investments | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Pension assets | 0 | 0 | |
Level 3 | Hedge fund investments | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Pension assets | 0 | 0 | |
Pension Plan | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Pension assets | 209,356 | 398,430 | $ 331,354 |
Pension Plan | NAV | Cash and cash equivalents | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Pension assets | 0 | 0 | |
Pension Plan | NAV | Domestic equity securities | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Pension assets | 2,235 | 7,236 | |
Pension Plan | NAV | International equity securities | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Pension assets | 0 | 0 | |
Pension Plan | NAV | Emerging equity securities | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Pension assets | 0 | 0 | |
Pension Plan | NAV | TIPS | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Pension assets | 0 | ||
Pension Plan | NAV | Debt Securities | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Pension assets | 0 | 0 | |
Pension Plan | NAV | Hedge fund investments | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Pension assets | 18,758 | ||
Pension Plan | Level 1 | Cash and cash equivalents | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Pension assets | 1,562 | 4,447 | |
Pension Plan | Level 1 | Domestic equity securities | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Pension assets | 67,661 | 78,577 | |
Pension Plan | Level 1 | International equity securities | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Pension assets | 5,743 | 9,485 | |
Pension Plan | Level 1 | Emerging equity securities | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Pension assets | 4,996 | 8,077 | |
Pension Plan | Level 1 | TIPS | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Pension assets | 7,280 | ||
Pension Plan | Level 1 | Debt Securities | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Pension assets | 25,742 | 181,908 | |
Pension Plan | Level 1 | Hedge fund investments | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Pension assets | 0 | ||
Pension Plan | Level 2 | Cash and cash equivalents | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Pension assets | 0 | 0 | |
Pension Plan | Level 2 | Domestic equity securities | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Pension assets | 0 | 42,448 | |
Pension Plan | Level 2 | International equity securities | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Pension assets | 4,519 | 9,505 | |
Pension Plan | Level 2 | Emerging equity securities | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Pension assets | 0 | 0 | |
Pension Plan | Level 2 | TIPS | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Pension assets | 0 | ||
Pension Plan | Level 2 | Debt Securities | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Pension assets | 65,364 | 32,781 | |
Pension Plan | Level 2 | Hedge fund investments | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Pension assets | 0 | ||
Pension Plan | Level 3 | Cash and cash equivalents | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Pension assets | 0 | 0 | |
Pension Plan | Level 3 | Domestic equity securities | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Pension assets | 0 | 0 | |
Pension Plan | Level 3 | International equity securities | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Pension assets | 0 | 0 | |
Pension Plan | Level 3 | Emerging equity securities | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Pension assets | 0 | 0 | |
Pension Plan | Level 3 | TIPS | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Pension assets | 0 | ||
Pension Plan | Level 3 | Debt Securities | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Pension assets | $ 0 | 0 | |
Pension Plan | Level 3 | Hedge fund investments | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Pension assets | $ 0 |
Defined Benefit Pension Plans_9
Defined Benefit Pension Plans - The Activity Within Other Comprehensive Income (Loss) (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Sep. 25, 2022 | Sep. 26, 2021 | Sep. 27, 2020 | |
Comprehensive (loss) income, net of taxes: | |||
Change in unrecognized benefit plan gain (loss) arising during the period, net of taxes $279, $19,148, and $4,095, respectively | $ (14,485) | $ 59,663 | $ 10,329 |
Amortization of items to periodic pension and other post-employment benefit costs during the period, net of taxes $6,389, $819, and $542, respectively | (11,049) | 2,574 | (1,265) |
Other comprehensive (loss) income recognized in operations, net of taxes | (25,534) | 62,237 | 9,064 |
Change in unrecognized benefit plan gain (loss) arising during the period, tax | 279 | 19,148 | 4,095 |
Amortization of items to periodic pension and other post-employment benefit costs during the period, tax | $ 6,389 | $ 819 | $ 542 |
Defined Benefit Pension Plan_10
Defined Benefit Pension Plans - Future Benefit Payments (Details) $ in Thousands | Sep. 25, 2022 USD ($) |
Retirement Benefits [Abstract] | |
2023 | $ 14,668 |
2024 | 14,830 |
2025 | 14,947 |
2026 | 15,126 |
2027 | 15,204 |
2028-2032 | $ 75,362 |
Postretirement and Postemploy_3
Postretirement and Postemployment Benefits - Net Period Postretirement Cost (Benefit) Components for Postretirement Plans (Details) - Postemployment Retirement Benefits - USD ($) $ in Thousands | 12 Months Ended | ||
Sep. 25, 2022 | Sep. 26, 2021 | Sep. 27, 2020 | |
Defined Benefit Plans and Other Postretirement Benefit Plans Table Text Block [Line Items] | |||
Service cost for benefits earned during the year | $ 108 | $ 207 | $ 500 |
Interest cost on projected benefit obligation | 340 | 429 | 869 |
Expected return on plan assets | (1,053) | (1,007) | (1,060) |
Amortization of net (gain) loss | (994) | (685) | (743) |
Amortization of prior service benefit | (647) | (647) | (647) |
Curtailment gains | 0 | (23,830) | 0 |
Net periodic pension cost (benefit) | $ (2,246) | $ (25,533) | $ (1,081) |
Postretirement and Postemploy_4
Postretirement and Postemployment Benefits - Benefit Obligations and Plan Assets (Details) - Other Postretirement Benefits Plan - USD ($) $ in Thousands | 12 Months Ended | |
Sep. 25, 2022 | Sep. 26, 2021 | |
Defined Benefit Plan, Change in Benefit Obligation [Roll Forward] | ||
Benefit obligation, beginning of year | $ 18,538 | $ 47,637 |
Service cost | 108 | 207 |
Interest cost | 340 | 429 |
Liability (gain)/loss due to curtailment | 0 | (23,830) |
Actuarial loss (gain) | (4,729) | (4,285) |
Benefits paid, net of premiums received | (1,958) | (1,678) |
Medicare Part D subsidies | (12) | 58 |
Benefit obligation, end of year | 12,287 | 18,538 |
Defined Benefit Plan, Change in Fair Value of Plan Assets [Roll Forward] | ||
Fair value of plan assets, beginning of year: | 26,802 | 25,706 |
Actual return on plan assets | (2,453) | 1,534 |
Employer contributions | 1,525 | 1,293 |
Benefits paid, net of premiums and Medicare Part D subsidies received | (2,105) | (1,795) |
Plan participant contributions | 134 | 64 |
Fair value of plan assets, end of year | 23,903 | 26,802 |
Funded status | $ 11,616 | $ 8,264 |
Postretirement and Postemploy_5
Postretirement and Postemployment Benefits - Amounts Recognized in the Consolidated Balance Sheets (Details) - USD ($) $ in Thousands | Sep. 25, 2022 | Sep. 26, 2021 |
Defined Benefit Plans and Other Postretirement Benefit Plans Table Text Block [Line Items] | ||
Accumulated other comprehensive income (before income tax benefit) | $ (5,452) | $ (36,965) |
Other Postretirement Benefits Plan | ||
Defined Benefit Plans and Other Postretirement Benefit Plans Table Text Block [Line Items] | ||
Non-current assets | 19,066 | 17,664 |
Postretirement benefit obligations | (7,450) | (9,859) |
Accumulated other comprehensive income (before income tax benefit) | $ 17,327 | $ 17,747 |
Postretirement and Postemploy_6
Postretirement and Postemployment Benefits - Amounts Recognized in Accumulated Other Comprehensive Income (Loss) (Details) - USD ($) $ in Thousands | 12 Months Ended | |
Sep. 25, 2022 | Sep. 26, 2021 | |
Defined Benefit Plans and Other Postretirement Benefit Plans Table Text Block [Line Items] | ||
Unrecognized net actuarial gain (loss) | $ 10,893 | $ 36,965 |
Other Postretirement Benefits Plan | ||
Defined Benefit Plans and Other Postretirement Benefit Plans Table Text Block [Line Items] | ||
Unrecognized net actuarial gain (loss) | 14,298 | 14,071 |
Unrecognized prior service benefit | 3,029 | 3,676 |
Amounts recognized in accumulated other comprehensive income (loss) | $ 17,327 | $ 17,747 |
Postretirement and Postemploy_7
Postretirement and Postemployment Benefits - Narrative (Details) | 12 Months Ended | ||
Sep. 25, 2022 USD ($) | Sep. 26, 2021 USD ($) | Sep. 27, 2020 USD ($) | |
Other Postretirement Benefits Plan | |||
Defined Benefit Plans and Other Postretirement Benefit Plans Table Text Block [Line Items] | |||
Net actuarial gain expected to be recognized in net periodic pension cost during next fiscal year | $ 1,014,000 | ||
Amortization of prior service cost (credit) expected to be recognized during the next fiscal year | $ 647,000 | ||
Assumptions used calculating net periodic benefit cost, expected long-term rate of return on plan assets | 5% | 4% | 4.50% |
Liability (gain)/loss due to curtailment | $ 0 | $ (23,830,000) | |
Non-current assets | 19,066,000 | 17,664,000 | |
Expected future employer contributions, next fiscal year | 0 | ||
Postemployment benefit obligation | 12,287,000 | 18,538,000 | $ 47,637,000 |
Other Postretirement Benefits Plan | U.S. Small Cap Value Equity Common/Collective Fund | |||
Defined Benefit Plans and Other Postretirement Benefit Plans Table Text Block [Line Items] | |||
Investment in equity securities measured at fair value, recognized in net income | 791,000 | 904,000 | |
Other Postretirement Benefits Plan | Global Equity Long/Short Common/Collective Hedge Fund-of-funds | |||
Defined Benefit Plans and Other Postretirement Benefit Plans Table Text Block [Line Items] | |||
Investment in equity securities measured at fair value, recognized in net income | $ 2,782,000 | 3,235,000 | |
Maximum percentage of equity investment redeemable | 0.90 | ||
Other Postretirement Benefits Plan | Global Equity Long/Short Common/Collective Hedge Fund-of-funds | Minimum | |||
Defined Benefit Plans and Other Postretirement Benefit Plans Table Text Block [Line Items] | |||
Notice for redemption of equity investment | 90 days | ||
Other Postretirement Benefits Plan | Global Equity Long/Short Common/Collective Hedge Fund-of-funds | Maximum | |||
Defined Benefit Plans and Other Postretirement Benefit Plans Table Text Block [Line Items] | |||
Notice for redemption of equity investment | 120 days | ||
Other Postretirement Benefits Plan | Level 3 | |||
Defined Benefit Plans and Other Postretirement Benefit Plans Table Text Block [Line Items] | |||
Purchases, sales or transfers of assets classified as level 3 | $ 0 | 0 | |
Postemployment Retirement Benefits | |||
Defined Benefit Plans and Other Postretirement Benefit Plans Table Text Block [Line Items] | |||
Curtailment gain | 0 | 23,830,000 | $ 0 |
Liability (gain)/loss due to curtailment | 23,830,000 | ||
Postemployment benefit obligation | 1,771,000 | 2,233,000 | |
Retiree Medical Plan | |||
Defined Benefit Plans and Other Postretirement Benefit Plans Table Text Block [Line Items] | |||
Non-current assets | $ 614,000 | $ 631,000 |
Postretirement and Postemploy_8
Postretirement and Postemployment Benefits - Assumptions (Details) - Other Postretirement Benefits Plan | 12 Months Ended | ||
Sep. 25, 2022 | Sep. 26, 2021 | Sep. 27, 2020 | |
Defined Benefit Plans and Other Postretirement Benefit Plans Table Text Block [Line Items] | |||
Discount rate | 5.30% | 2.60% | |
Expected long-term return on plan assets | 5% | 4% | |
Discount rate - service cost | 5.50% | 2.50% | 3.40% |
Discount rate - interest cost | 5.10% | 1.90% | 2.80% |
Expected long-term return on plan assets | 5% | 4% | 4.50% |
Postretirement and Postemploy_9
Postretirement and Postemployment Benefits - Assumed Health Care Cost Trend Rates (Details) - Other Postretirement Benefits Plan | 12 Months Ended | |
Sep. 25, 2022 | Sep. 26, 2021 | |
Defined Benefit Plans and Other Postretirement Benefit Plans Table Text Block [Line Items] | ||
Health care cost trend rates (percentage) | 10.60% | 6.20% |
Rate to which the cost trend rate is assumed to decline (the "Ultimate Trend Rate") (percentage) | 4.50% | 4.50% |
Year in which the rate reaches the Ultimate Trend Rate | 2032 | 2030 |
Postretirement and Postemplo_10
Postretirement and Postemployment Benefits - Allocation of Benefit Plan Assets (Details) - Other Postretirement Benefits Plan | Sep. 25, 2022 | Sep. 26, 2021 |
Equity securities | ||
Defined Benefit Plans and Other Postretirement Benefit Plans Table Text Block [Line Items] | ||
Policy Allocation, percentage | 20% | |
Actual Allocation, percentage | 17% | 20% |
Debt securities | ||
Defined Benefit Plans and Other Postretirement Benefit Plans Table Text Block [Line Items] | ||
Policy Allocation, percentage | 70% | |
Actual Allocation, percentage | 71% | 68% |
Hedge fund investments | ||
Defined Benefit Plans and Other Postretirement Benefit Plans Table Text Block [Line Items] | ||
Policy Allocation, percentage | 10% | |
Actual Allocation, percentage | 12% | 12% |
Cash and cash equivalents | ||
Defined Benefit Plans and Other Postretirement Benefit Plans Table Text Block [Line Items] | ||
Policy Allocation, percentage | 0% | |
Actual Allocation, percentage | 0% | 0% |
Postretirement and Postemplo_11
Postretirement and Postemployment Benefits - Fair Value Hierarchy of Benefit Plan Assets (Details) - USD ($) $ in Thousands | Sep. 25, 2022 | Sep. 26, 2021 | Sep. 27, 2020 |
NAV | Hedge fund investments | |||
Defined Benefit Plans and Other Postretirement Benefit Plans Table Text Block [Line Items] | |||
Postretirement assets | $ 32,515 | $ 3,235 | |
Level 1 | Hedge fund investments | |||
Defined Benefit Plans and Other Postretirement Benefit Plans Table Text Block [Line Items] | |||
Postretirement assets | 0 | 0 | |
Level 2 | Hedge fund investments | |||
Defined Benefit Plans and Other Postretirement Benefit Plans Table Text Block [Line Items] | |||
Postretirement assets | 0 | 0 | |
Level 3 | Hedge fund investments | |||
Defined Benefit Plans and Other Postretirement Benefit Plans Table Text Block [Line Items] | |||
Postretirement assets | 0 | 0 | |
Other Postretirement Benefits Plan | |||
Defined Benefit Plans and Other Postretirement Benefit Plans Table Text Block [Line Items] | |||
Postretirement assets | 23,903 | 26,802 | $ 25,706 |
Other Postretirement Benefits Plan | NAV | Cash and cash equivalents | |||
Defined Benefit Plans and Other Postretirement Benefit Plans Table Text Block [Line Items] | |||
Postretirement assets | 0 | 0 | |
Other Postretirement Benefits Plan | NAV | Domestic equity securities | |||
Defined Benefit Plans and Other Postretirement Benefit Plans Table Text Block [Line Items] | |||
Postretirement assets | 791 | 904 | |
Other Postretirement Benefits Plan | NAV | Emerging equity securities | |||
Defined Benefit Plans and Other Postretirement Benefit Plans Table Text Block [Line Items] | |||
Postretirement assets | 0 | 0 | |
Other Postretirement Benefits Plan | NAV | International equity securities | |||
Defined Benefit Plans and Other Postretirement Benefit Plans Table Text Block [Line Items] | |||
Postretirement assets | 0 | 0 | |
Other Postretirement Benefits Plan | NAV | Debt Securities | |||
Defined Benefit Plans and Other Postretirement Benefit Plans Table Text Block [Line Items] | |||
Postretirement assets | 0 | 0 | |
Other Postretirement Benefits Plan | NAV | Hedge fund investments | |||
Defined Benefit Plans and Other Postretirement Benefit Plans Table Text Block [Line Items] | |||
Postretirement assets | 2,782 | ||
Other Postretirement Benefits Plan | Level 1 | Cash and cash equivalents | |||
Defined Benefit Plans and Other Postretirement Benefit Plans Table Text Block [Line Items] | |||
Postretirement assets | 26 | 25 | |
Other Postretirement Benefits Plan | Level 1 | Domestic equity securities | |||
Defined Benefit Plans and Other Postretirement Benefit Plans Table Text Block [Line Items] | |||
Postretirement assets | 1,910 | 2,643 | |
Other Postretirement Benefits Plan | Level 1 | Emerging equity securities | |||
Defined Benefit Plans and Other Postretirement Benefit Plans Table Text Block [Line Items] | |||
Postretirement assets | 456 | 603 | |
Other Postretirement Benefits Plan | Level 1 | International equity securities | |||
Defined Benefit Plans and Other Postretirement Benefit Plans Table Text Block [Line Items] | |||
Postretirement assets | 573 | 747 | |
Other Postretirement Benefits Plan | Level 1 | Debt Securities | |||
Defined Benefit Plans and Other Postretirement Benefit Plans Table Text Block [Line Items] | |||
Postretirement assets | 17,248 | 18,363 | |
Other Postretirement Benefits Plan | Level 1 | Hedge fund investments | |||
Defined Benefit Plans and Other Postretirement Benefit Plans Table Text Block [Line Items] | |||
Postretirement assets | 0 | ||
Other Postretirement Benefits Plan | Level 2 | Cash and cash equivalents | |||
Defined Benefit Plans and Other Postretirement Benefit Plans Table Text Block [Line Items] | |||
Postretirement assets | 0 | 0 | |
Other Postretirement Benefits Plan | Level 2 | Domestic equity securities | |||
Defined Benefit Plans and Other Postretirement Benefit Plans Table Text Block [Line Items] | |||
Postretirement assets | 0 | 0 | |
Other Postretirement Benefits Plan | Level 2 | Emerging equity securities | |||
Defined Benefit Plans and Other Postretirement Benefit Plans Table Text Block [Line Items] | |||
Postretirement assets | 0 | 0 | |
Other Postretirement Benefits Plan | Level 2 | International equity securities | |||
Defined Benefit Plans and Other Postretirement Benefit Plans Table Text Block [Line Items] | |||
Postretirement assets | 480 | 660 | |
Other Postretirement Benefits Plan | Level 2 | Debt Securities | |||
Defined Benefit Plans and Other Postretirement Benefit Plans Table Text Block [Line Items] | |||
Postretirement assets | 0 | 0 | |
Other Postretirement Benefits Plan | Level 2 | Hedge fund investments | |||
Defined Benefit Plans and Other Postretirement Benefit Plans Table Text Block [Line Items] | |||
Postretirement assets | 0 | ||
Other Postretirement Benefits Plan | Level 3 | Cash and cash equivalents | |||
Defined Benefit Plans and Other Postretirement Benefit Plans Table Text Block [Line Items] | |||
Postretirement assets | 0 | 0 | |
Other Postretirement Benefits Plan | Level 3 | Domestic equity securities | |||
Defined Benefit Plans and Other Postretirement Benefit Plans Table Text Block [Line Items] | |||
Postretirement assets | 0 | 0 | |
Other Postretirement Benefits Plan | Level 3 | Emerging equity securities | |||
Defined Benefit Plans and Other Postretirement Benefit Plans Table Text Block [Line Items] | |||
Postretirement assets | 0 | 0 | |
Other Postretirement Benefits Plan | Level 3 | International equity securities | |||
Defined Benefit Plans and Other Postretirement Benefit Plans Table Text Block [Line Items] | |||
Postretirement assets | 0 | 0 | |
Other Postretirement Benefits Plan | Level 3 | Debt Securities | |||
Defined Benefit Plans and Other Postretirement Benefit Plans Table Text Block [Line Items] | |||
Postretirement assets | 0 | $ 0 | |
Other Postretirement Benefits Plan | Level 3 | Hedge fund investments | |||
Defined Benefit Plans and Other Postretirement Benefit Plans Table Text Block [Line Items] | |||
Postretirement assets | $ 0 |
Postretirement and Postemplo_12
Postretirement and Postemployment Benefits - Future Benefit Payments (Details) $ in Thousands | Sep. 25, 2022 USD ($) |
Defined Benefit Plans and Other Postretirement Benefit Plans Table Text Block [Line Items] | |
2023, gross payments | $ 14,668 |
2024, gross payments | 14,830 |
2025, gross payments | 14,947 |
2026, gross payments | 15,126 |
2027, gross payments | 15,204 |
2028-2032, gross payments | 75,362 |
Other Postretirement Benefits Plan | |
Defined Benefit Plans and Other Postretirement Benefit Plans Table Text Block [Line Items] | |
2023, gross payments | 980 |
2023, subsidy | 0 |
2023, net payments | 980 |
2024, gross payments | 991 |
2024, subsidy | 0 |
2024, net payments | 991 |
2025, gross payments | 985 |
2025, subsidy | 0 |
2025, net payments | 985 |
2026, gross payments | 987 |
2026, subsidy | 0 |
2026, net payments | 987 |
2027, gross payments | 955 |
2027, subsidy | 0 |
2027, net payments | 955 |
2028-2032, gross payments | 4,563 |
2028-2032, subsidy | 0 |
2028-2032, net payments | $ 4,563 |
Other Retirement Plans - Narrat
Other Retirement Plans - Narrative (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Sep. 25, 2022 | Sep. 26, 2021 | Sep. 27, 2020 | |
Multiemployer Plan [Line Items] | |||
Defined contribution retirement plan costs | $ 3,565 | $ 3,403 | $ 2,666 |
Percentage of CBA's expiring in the next twelve months | 55% | ||
Minimum | |||
Multiemployer Plan [Line Items] | |||
Multiemployer plans, withdrawal obligation, period (year) | 20 years | ||
Warrants and Other Liabilities [Member] | |||
Multiemployer Plan [Line Items] | |||
Withdrawal liabilities | $ 24,995 | $ 23,471 |
Other Retirement Plans - Other
Other Retirement Plans - Other Retirement Plans (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Sep. 25, 2022 | Sep. 26, 2021 | Sep. 27, 2020 | |
GCIU- Employer Retirement Fund | |||
Multiemployer Plan [Line Items] | |||
Contribution to multiemployer plan | $ 0 | $ 10 | $ 87 |
District No. 9, International Association of Machinists and Aerospace Workers Pension Trust | |||
Multiemployer Plan [Line Items] | |||
Contribution to multiemployer plan | 0 | 15 | 31 |
CWA/ITU negotiated Pension Plan | |||
Multiemployer Plan [Line Items] | |||
Contribution to multiemployer plan | 0 | 81 | 456 |
IAM National Pension Fund | |||
Multiemployer Plan [Line Items] | |||
Contribution to multiemployer plan | 57 | 67 | 86 |
Operating Engineers Central Pension Fund of the International Union of Operating Engineers and Participating Employers(2) | |||
Multiemployer Plan [Line Items] | |||
Contribution to multiemployer plan | $ 50 | $ 49 | $ 52 |
Common Stock (Details)
Common Stock (Details) - $ / shares shares in Thousands | Sep. 26, 2021 | Mar. 30, 2018 | Mar. 31, 2014 |
Class of Warrant or Right [Line Items] | |||
Warrants outstanding (in shares) | 600 | ||
Warrant Agreement | |||
Class of Warrant or Right [Line Items] | |||
Class of warrant or right, number of securities called by warrants or rights (in shares) | 600 | ||
Class of warrant or right, percentage of common stock outstanding | 10.10% | ||
Class of warrant or right, exercise price of warrants or rights (in dollars per share) | $ 41.90 | ||
Warrants outstanding (in shares) | 16,930 |
Stock Ownership Plans - Narrati
Stock Ownership Plans - Narrative (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Sep. 25, 2022 | Sep. 26, 2021 | Sep. 27, 2020 | |
Share-Based Compensation Arrangement by Share-Based Payment Award [Line Items] | |||
Non-cash stock compensation expense | $ 1,337 | $ 854 | $ 1,042 |
Common stock reserved for future issuances (in shares) | 279,810 | ||
Number of shares available for grant (in shares) | 279,810 | ||
Unrecognized compensation expense for unvested restricted common stock | $ 1,876 | ||
Cost not yet recognized, period for recognition (years) | 1 year 3 months 18 days | ||
Employee Stock Purchase Plan | |||
Share-Based Compensation Arrangement by Share-Based Payment Award [Line Items] | |||
Employee stock ownership plan, shares available for issuance (in shares) | 27,000 | ||
Supplemental Employee Stock Purchase Plan | |||
Share-Based Compensation Arrangement by Share-Based Payment Award [Line Items] | |||
Employee stock ownership plan, shares available for issuance (in shares) | 870 | ||
Options | |||
Share-Based Compensation Arrangement by Share-Based Payment Award [Line Items] | |||
Vesting or restriction period (in years) | 10 years |
Stock Ownership Plans - Stock O
Stock Ownership Plans - Stock Option Activities (Details) - shares shares in Thousands | 12 Months Ended | ||
Sep. 25, 2022 | Sep. 26, 2021 | Sep. 27, 2020 | |
Share-Based Compensation Arrangement by Share-Based Payment Award, Options, Outstanding [Roll Forward] | |||
Outstanding, beginning balance (in shares) | 36 | 41 | 81 |
Exercised (in shares) | (9) | (2) | 0 |
Canceled (in shares) | (27) | (3) | (40) |
Outstanding, ending balance (in shares) | 0 | 36 | 41 |
Exercisable, end of year (in shares) | 0 | 36 | 41 |
Stock Ownership Plans - Weighte
Stock Ownership Plans - Weighted Average Prices of Stock Options (Details) - $ / shares | 12 Months Ended | ||
Sep. 25, 2022 | Sep. 26, 2021 | Sep. 27, 2020 | |
Share-Based Payment Arrangement [Abstract] | |||
Exercised (in dollars per share) | $ 11.30 | $ 11.30 | $ 0 |
Cancelled (in dollars per share) | 11.30 | 11.30 | 25.30 |
Outstanding, end of year (in dollars per share) | $ 0 | $ 11.40 | $ 11.40 |
Stock Ownership Plans - Summary
Stock Ownership Plans - Summary of Restricted Stock Activity (Details) - Restricted Stock - $ / shares shares in Thousands | 12 Months Ended | ||
Sep. 25, 2022 | Sep. 26, 2021 | Sep. 27, 2020 | |
Number of Shares | |||
Outstanding, beginning of year (in shares) | 154 | 155 | 148 |
Granted (in shares) | 78 | 46 | 72 |
Vested (in shares) | (66) | (45) | (61) |
Forfeited (in shares) | (1) | (2) | (4) |
Outstanding, end of year (in shares) | 165 | 154 | 155 |
Weighted Average Grant Date Fair Value | |||
Outstanding, beginning of year (in dollars per share) | $ 16.70 | $ 21.50 | $ 24.90 |
Granted (in dollars per share) | 30.01 | 11.20 | 16.20 |
Vested (in dollars per share) | 20.93 | 27.30 | 23.40 |
Forfeitures (in dollars per share) | 23.60 | 16.10 | 24.40 |
Outstanding, end of year (in dollars per share) | $ 21.21 | $ 16.70 | $ 21.50 |
Income Taxes - Income Tax Expen
Income Taxes - Income Tax Expense (Benefit) (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Sep. 25, 2022 | Sep. 26, 2021 | Sep. 27, 2020 | |
Current: | |||
Federal | $ 4,932 | $ (2,431) | $ 8,779 |
State | 142 | 3,642 | (10) |
Deferred | (4,376) | 6,044 | (5,796) |
Total income tax expense | $ 698 | $ 7,255 | $ 2,973 |
Income Taxes - Income Tax Exp_2
Income Taxes - Income Tax Expense (Benefit) Related to Continuing Operations (Details) | 12 Months Ended | ||
Sep. 25, 2022 | Sep. 26, 2021 | Sep. 27, 2020 | |
(Percent of (Loss) Income Before Income Taxes) | |||
Computed “expected” income tax expense | 21% | 21% | 21% |
State income tax benefit, net of federal tax benefit | (8.90%) | 5.60% | 21.70% |
Net income of associated companies | (77.20%) | (1.80%) | (18.30%) |
Resolution of tax matters | (32.20%) | 3.20% | (30.50%) |
Remeasurement due to rate changes | (11.20%) | 0.10% | (31.00%) |
Non-deductible expenses | 124% | 0.90% | 19.40% |
Provision to return adjustment | 70.20% | 0% | 0% |
Valuation allowance | 11.90% | (6.00%) | 125.20% |
Wage credit, net addback | (7.50%) | 0% | 0% |
Warrant valuation | (1.90%) | (0.40%) | (7.30%) |
Other | 0% | 0% | 4.40% |
Total percent of income (loss) before income taxes | 88.20% | 22.60% | 104.60% |
Income Taxes - Deferred Income
Income Taxes - Deferred Income Tax Liabilities (Details) - USD ($) $ in Thousands | Sep. 25, 2022 | Sep. 26, 2021 |
Deferred income tax liabilities: | ||
Property and equipment | $ (11,712) | $ (13,284) |
Identified intangible assets | (21,649) | (27,543) |
ASC 842 - Leases DTL | (11,308) | (15,813) |
Pension and postretirement benefits | 0 | (6,346) |
Investments | (26,489) | (14,823) |
Total deferred income tax liabilities | (71,158) | (77,809) |
Deferred income tax assets: | ||
Allowance for credit losses | 802 | 237 |
Pension and postretirement benefits | 3,445 | 0 |
Long-term debt | 161 | 716 |
Interest deduction limitation | 4,809 | 0 |
Operating loss carryforwards | 26,224 | 26,999 |
ASC 842 - Leases DTA | 13,112 | 15,840 |
Accrued compensation | 1,914 | 6,630 |
Accrued expenses | 1,663 | 443 |
Other | 2,964 | 812 |
Total deferred income tax assets | 55,094 | 51,677 |
Valuation allowance | (26,655) | (27,631) |
Net deferred income tax liabilities | $ (42,719) | $ (53,763) |
Income Taxes - Gross Unrecogniz
Income Taxes - Gross Unrecognized Tax Benefits (Details) - USD ($) $ in Thousands | 12 Months Ended | |
Sep. 25, 2022 | Sep. 26, 2021 | |
Reconciliation of Changes in Gross Unrecognized Tax Benefits [Roll Forward] | ||
Balance, beginning of year | $ 18,279 | $ 27,008 |
Changes in tax positions for prior years | (307) | |
Changes in tax positions for prior years | 1,008 | |
Increases (decrease) in tax positions for the current year | 1,887 | |
Increases (decrease) in tax positions for the current year | (8,940) | |
Lapse in statute of limitations | (1,617) | (797) |
Balance, end of year | $ 18,242 | $ 18,279 |
Income Taxes - Narrative (Detai
Income Taxes - Narrative (Details) - USD ($) $ in Thousands | Sep. 25, 2022 | Sep. 26, 2021 |
Income Tax Contingency [Line Items] | ||
Unrecognized tax benefits that would impact effective tax rate | $ 3,582 | |
Accrued interest related to unrecognized tax benefits | 1,476 | $ 1,393 |
Deferred tax asset | 4,809 | 0 |
Operating loss carryforwards | 26,224 | 26,999 |
State and Local Jurisdiction | ||
Income Tax Contingency [Line Items] | ||
Unrecognized tax benefits related to net operating loss | 11,942 | $ 10,984 |
State tax benefits in net operating loss carryforwards | 45,137 | |
Operating loss carryforwards | $ 35,658 |
Fair Value of Financial Instr_3
Fair Value of Financial Instruments - Narrative (Details) - USD ($) $ in Thousands | 12 Months Ended | |||
Sep. 25, 2022 | Sep. 26, 2021 | Sep. 27, 2020 | Mar. 31, 2014 | |
Fair Value Measurement Inputs and Valuation Techniques [Line Items] | ||||
Fair value adjustment of warrants | $ 71 | $ 292 | $ 832 | |
Senior Secured Notes | ||||
Fair Value Measurement Inputs and Valuation Techniques [Line Items] | ||||
Term note | $ 462,554 | |||
TCT | ||||
Fair Value Measurement Inputs and Valuation Techniques [Line Items] | ||||
Percent ownership of voting common stock of TCT | 0.70% | |||
Total percent of voting common stock | 8.70% | |||
Level 3 | ||||
Fair Value Measurement Inputs and Valuation Techniques [Line Items] | ||||
Investments, fair value disclosure, total | $ 4,226 | |||
Level 3 | TCT and Private Equity Investment | ||||
Fair Value Measurement Inputs and Valuation Techniques [Line Items] | ||||
Percent ownership of non-voting common stock | 16.70% | |||
Level 2 | ||||
Fair Value Measurement Inputs and Valuation Techniques [Line Items] | ||||
Investments, fair value disclosure, total | $ 1,745 | |||
Warrants | 0 | $ 71 | $ 363 | $ 16,930 |
Level 2 | Senior Secured Notes | ||||
Fair Value Measurement Inputs and Valuation Techniques [Line Items] | ||||
Long-term debt, fair value | $ 463,446 |
Fair Value of Financial Instr_4
Fair Value of Financial Instruments - Estimate Fair Value of Financial Instruments (Details) | Sep. 25, 2022 yr $ / shares | Sep. 26, 2021 yr $ / shares | Sep. 27, 2020 yr $ / shares |
Volatility (Percent) | |||
Fair Value Measurement Inputs and Valuation Techniques [Line Items] | |||
Warrants and rights outstanding, measurement input | 0 | 0.43 | 0.84 |
Risk-free interest rate (Percent) | |||
Fair Value Measurement Inputs and Valuation Techniques [Line Items] | |||
Warrants and rights outstanding, measurement input | 0 | 0.0005 | 0.0012 |
Expected term (Years) | |||
Fair Value Measurement Inputs and Valuation Techniques [Line Items] | |||
Warrants and rights outstanding, measurement input | yr | 0 | 0.5 | 1.5 |
Estimated fair value (Dollars) | |||
Fair Value Measurement Inputs and Valuation Techniques [Line Items] | |||
Warrants and rights outstanding, measurement input | $ / shares | 0 | 0.12 | 0.06 |
Earnings Per Common Share - Com
Earnings Per Common Share - Computation of Basic and Diluted Earnings Per Common Share (Details) - USD ($) $ / shares in Units, shares in Thousands, $ in Thousands | 12 Months Ended | ||
Sep. 25, 2022 | Sep. 26, 2021 | Sep. 27, 2020 | |
Earnings Per Share [Abstract] | |||
(Loss) income attributable to Lee Enterprises, Incorporated: | $ (2,017) | $ 22,745 | $ (1,975) |
Weighted average Common Stock (in shares) | 5,946 | 5,873 | 5,811 |
Less non-vested restricted Common Stock (in shares) | (167) | (156) | (154) |
Basic average Common Stock (in shares) | 5,778 | 5,717 | 5,657 |
Dilutive stock options and restricted Common Stock (in shares) | 0 | 109 | 37 |
Diluted average Common Stock (in shares) | 5,778 | 5,826 | 5,694 |
Earnings (loss) per common share: | |||
Basic (in dollars per share) | $ (0.35) | $ 3.98 | $ (0.35) |
Diluted (in dollars per share) | $ (0.35) | $ 3.90 | $ (0.35) |
Earnings Per Common Share - Nar
Earnings Per Common Share - Narrative (Details) - shares | 12 Months Ended | ||
Sep. 25, 2022 | Sep. 26, 2021 | Sep. 27, 2020 | |
Earnings Per Share [Abstract] | |||
Antidilutive securities excluded from computation of earnings per share, amount (in shares) | 74,304 | 600,000 | 600,000 |
Allowance for Credit Losses - V
Allowance for Credit Losses - Valuation and Qualifying Account Information (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Sep. 25, 2022 | Sep. 26, 2021 | Sep. 27, 2020 | |
Accounts Receivable, Allowance for Credit Loss [Roll Forward] | |||
Balance, beginning of year | $ 6,574 | $ 13,431 | $ 6,434 |
Additions charged to expense | 5,190 | 1,505 | 8,607 |
Deductions from reserves | (6,527) | (8,362) | (1,610) |
Balance, end of year | $ 5,237 | $ 6,574 | $ 13,431 |
Other Information - Compensatio
Other Information - Compensation and Other Accrued Liabilities (Details) - USD ($) $ in Thousands | Sep. 25, 2022 | Sep. 26, 2021 |
Other Information [Abstract] | ||
Compensation | $ 20,815 | $ 20,849 |
Retirement plans | 549 | 554 |
Other | 23,376 | 23,673 |
Compensation and other accrued liabilities | $ 44,740 | $ 45,076 |
Other Information - Supplementa
Other Information - Supplemental Cash Flow Information (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Sep. 25, 2022 | Sep. 26, 2021 | Sep. 27, 2020 | |
Other Information [Abstract] | |||
Interest | $ 41,770 | $ 45,214 | $ 49,518 |
Debt financing and reorganization costs | 0 | 0 | 707 |
Income tax payments, net | $ 5,311 | $ 7,604 | $ 446 |
Commitments and Contingent Li_2
Commitments and Contingent Liabilities - Narrative (Details) $ in Thousands | 12 Months Ended |
Sep. 25, 2022 USD ($) | |
Commitments and Contingencies Disclosure [Abstract] | |
Construction and equipment, purchase commitments | $ 3,872 |