Goodwill and other intangible assets

12 Months Ended

Dec. 25, 2011

NOTE 4

Goodwill and other intangible assets

ASC Topic 350 requires that goodwill and indefinite-lived intangible assets be tested for impairment at least annually. Recognized intangible assets that have finite useful lives are amortized over their useful lives and are subject to tests for impairment in accordance with the requirements included within ASC Topic 350.

Goodwill impairment tests completed in 2011 indicated no impairment. As discussed in Note 3, the company performed interim and year-end impairment tests on its goodwill and other intangible assets during 2010 and, as a result, recorded non-cash impairment charges totaling $30 million. The charges in 2010 included goodwill and other intangibles for the Digital segment of $11 million and $2 million, respectively, and $17 million for other intangibles for the Publishing segment (for a publication masthead in the U.K.).

During 2009, the company recorded non-cash impairment charges totaling $42 million. The charges in 2009 included goodwill and other intangibles for the Digital segment of $16 million and $9 million, respectively, and $17 million for goodwill for the Publishing segment.

The following table displays goodwill, indefinite-lived intangible assets, and amortizable intangible assets at Dec. 25, 2011, and Dec. 26, 2010.

		September 30,		September 30,		September 30,
In thousands of dollars	Gross		Accumulated Amortization		Net
Dec. 25, 2011
Goodwill	$	2,864,885	$	—	$	2,864,885
Indefinite-lived intangibles:
Mastheads and trade names		93,163		—		93,163
Television station FCC licenses		255,304		—		255,304
Amortizable intangible assets:
Customer relationships		298,437		169,499		128,938
Other		43,624		18,834		24,790

Total	$	3,555,413	$	188,333	$	3,367,080

Dec. 26, 2010
Goodwill	$	2,836,960	$	—	$	2,836,960
Indefinite-lived intangibles:
Mastheads and trade names		92,673		—		92,673
Television station FCC licenses		255,304		—		255,304
Amortizable intangible assets:
Customer relationships		311,646		166,068		145,578
Other		56,628		31,386		25,242

Total	$	3,553,211	$	197,454	$	3,355,757

Amortization expense was approximately $31.6 million in 2011 and $31.4 million in 2010. Customer relationships, which include subscriber lists and advertiser relationships, are amortized on a straight-line basis over three to 25 years. Other intangibles primarily include internally developed technology, patents and amortizable trade names and were assigned lives of between four and 21 years and are amortized on a straight-line basis.

Annual amortization expense relating to the amortizable intangibles is expected to be approximately $31 million in 2012 and gradually decline to $14 million in 2016 assuming no acquisitions or dispositions.

The following table shows the changes in the carrying amount of goodwill during 2011 and 2010.

		September 30,			September 30,			September 30,			September 30,
In thousands of dollars	Publishing			Digital			Broadcasting			Total
Goodwill
Gross balance at Dec. 27, 2009	$	7,692,437		$	670,976		$	1,618,429		$	9,981,842
Accumulated impairment losses		(7,101,595	)		(26,000	)		—			(7,127,595	)

Net balance at Dec. 27, 2009	$	590,842		$	644,976		$	1,618,429		$	2,854,247

Acquisitions & adjustments		1,476			10,072			—			11,548
Impairment		—			(10,603	)		—			(10,603	)
Dispositions		(5,927	)		—			—			(5,927	)
Foreign currency exchange rate changes		(6,918	)		(5,521	)		134			(12,305	)

Balance at Dec. 26, 2010	$	579,473		$	638,924		$	1,618,563		$	2,836,960

Gross balance at Dec. 26, 2010		7,599,030			675,527			1,618,563			9,893,120
Accumulated impairment losses		(7,019,557	)		(36,603	)		—			(7,056,160	)

Net balance at Dec. 26, 2010	$	579,473		$	638,924		$	1,618,563		$	2,836,960

Acquisitions & adjustments		11,215			17,500			—			28,715
Foreign currency exchange rate changes		1,789			(2,538	)		(41	)		(790	)

Balance at Dec. 25, 2011	$	592,477		$	653,886		$	1,618,522		$	2,864,885

Gross balance at Dec. 25, 2011		7,643,255			680,489			1,618,522			9,942,266
Accumulated impairment losses		(7,050,778	)		(26,603	)		—			(7,077,381	)

Net balance at Dec. 25, 2011	$	592,477		$	653,886		$	1,618,522		$	2,864,885

- Definition

The entire disclosure for the aggregate amount of goodwill and a description of intangible assets, which may include (a) for amortizable intangible assets (also referred to as finite-lived intangible assets), the carrying amount, the amount of any significant residual value, and the weighted-average amortization period, (b) for intangible assets not subject to amortization (also referred to as indefinite-lived intangible assets), the carrying amount, and (c) the amount of research and development assets acquired and written off in the period, including the line item in the income statement in which the amounts written off are aggregated, if not readily apparent from the income statement. Also discloses (a) for amortizable intangibles assets in total and by major class, the gross carrying amount and accumulated amortization, the total amortization expense for the period, and the estimated aggregate amortization expense for each of the five succeeding fiscal years, (b) for intangible assets not subject to amortization the carrying amount in total and by major class, and (c) for goodwill, in total and for each reportable segment, the changes in the carrying amount of goodwill during the period (including the aggregate amount of goodwill acquired, the aggregate amount of impairment losses recognized, and the amount of goodwill included in the gain (loss) on disposal of a reporting unit). If any part of goodwill has not been allocated to a reportable segment, discloses the unallocated amount and the reasons for not allocating. For each impairment loss recognized related to an intangible asset (excluding goodwill), discloses: (a) a description of the impaired intangible asset and the facts and circumstances leading to the impairment, (b) the amount of the impairment loss and the method for determining fair value, (c) the caption in the income statement or the statement of activities in which the impairment loss is aggregated, and (d) the segment in which the impaired intangible asset is reported. For each goodwill impairment loss recognized, discloses: (a) a description of the facts and circumstances leading to the impairment, (b) the amount of the impairment loss and the method of determining the fair value of the associated reporting unit, and (c) if a recognized impairment loss is an estimate not finalized and the reasons why the estimate is not final. May also disclose the nature and amount of any significant adjustments made to a previous estimate of an impairment loss.

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