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Commitments, contingent liabilities and other matters
 12 Months Ended
Dec. 25, 2011
Commitments, contingent liabilities and other matters

NOTE 12

Commitments, contingent liabilities and other matters

Litigation: The company and a number of its subsidiaries are defendants in judicial and administrative proceedings involving matters incidental to their business. The company does not believe that any material liability will be imposed as a result of these matters.

Leases: Approximate future minimum annual rentals payable under non-cancelable operating leases, primarily real-estate related, are as follows:

 

September 30,

In thousands of dollars

         

2012

      $ 49,146   

2013

        41,991   

2014

        36,643   

2015

        30,351   

2016

        25,102   

Later years

        69,632   
    

 

 

  

Total

      $ 252,865   
    

 

 

  

Total minimum annual rentals have not been reduced for future minimum sublease rentals aggregating $7.4 million. Total rental costs reflected in continuing operations were $63 million in 2011, $72 million in 2010 and $66 million in 2009.

Program broadcast contracts: The company has $81 million of commitments under programming contracts that include television station commitments to purchase programming to be produced in future years.

Purchase obligations: The company has commitments under purchasing obligations totaling $230 million related to printing contracts, capital projects, interactive marketing agreements, wire services and other legally binding commitments. Amounts which the company is liable for under purchase orders outstanding at Dec. 25, 2011, are reflected in the Consolidated Balance Sheet as accounts payable and accrued liabilities and are excluded from the $230 million.

Self insurance: The company is self-insured for most of its employee medical coverage and for its casualty, general liability and libel coverage (subject to a cap above which third party insurance is in place). The liabilities are established on an actuarial basis, with the advice of consulting actuaries, and totaled $120 million at the end of 2011 and $142 million at the end of 2010.

Other matters: In December 1990, the company adopted a Transitional Compensation Plan (the Plan). The Plan provides termination benefits to key executives whose employment is terminated under certain circumstances within two years following a change in control of the company. Benefits under the Plan include a severance payment of up to three years’ compensation and continued life and medical insurance coverage.

The Advertiser Company, a Gannett subsidiary which publishes The Montgomery Advertiser, has been notified by the U.S. EPA that it has been identified as a PRP for the investigation and remediation of a plume of groundwater contamination in downtown Montgomery, AL. The Advertiser Company understands that, while the EPA’s investigation of this urban area is ongoing, at this stage of the process only The Advertiser Company and one other party have received notice of potential responsibility; however, it is possible that other PRPs may be identified as the EPA’s investigation continues. The Advertiser Company, which ceased printing in downtown Montgomery in 1997, is currently investigating whether its former operations had a connection with the site. At this point in the investigation, incomplete information is available about the site, other PRPs and what potential further investigation and remediation action may be required. Accordingly, the future costs of any potential remediation action and The Advertiser Company’s share of such costs, if any, cannot yet be determined.

In connection with certain business acquisitions, the company is contingently liable for earnout payments to previous owners, depending upon the achievement of certain financial and performance metrics. During 2011, the company paid $1.6 million as the result of acquisitions.