XML 63 R19.htm IDEA: XBRL DOCUMENT v3.19.3.a.u2
Significant Accounting Policies (Policies)
3 Months Ended
Dec. 29, 2019
Accounting Policies [Abstract]  
Basis of Accounting, Policy [Policy Text Block]
Basis of Presentation
 
The accompanying unaudited, interim, Consolidated Financial Statements included herein have been prepared pursuant to the rules and regulations of the Securities and Exchange Commission for quarterly reports. In the opinion of management, these financial statements contain all adjustments (consisting of only normal recurring items) necessary to present fairly the financial position of Lee Enterprises, Incorporated and subsidiaries (the “Company”) as of 
December 29, 2019
 and our results of operations and cash flows for the periods presented. The Consolidated Financial Statements should be read in conjunction with the Consolidated Financial Statements and Notes thereto included in the Company's
2019
 Annual Report on Form
10
-K.
 
Because of seasonal and other factors, the results of operations for the
13
 weeks ended 
December 29, 2019
 are
not
necessarily indicative of the results to be expected for the full year.
 
References to “we”, “our”, “us” and the like throughout the Consolidated Financial Statements refer to the Company. References to
“2020”,
“2019”
and the like refer to the fiscal years ended the last Sunday in
September.
 
The Consolidated Financial Statements include our accounts and those of our subsidiaries, all of which are wholly-owned, except for our
82.5%
interest in INN Partners, L.C. ("TownNews.com"),
50%
interest in TNI Partners (“TNI”) and
50%
interest in Madison Newspapers, Inc. (“MNI”).
 
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 intangible assets.
Use of Estimates, Policy [Policy Text Block]
Use of Estimates
 
The preparation of the Consolidated Financial Statements in conformity with U.S. generally accepted accounting principles ("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 these estimates and judgments on an ongoing 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.
New Accounting Pronouncements, Policy [Policy Text Block]
Recently Issued Accounting Standards - Standards Adopted in
2020
 
In
February 2016,
the FASB issued a new standard for the accounting treatment of leases, known as Accounting Standards
842
("AS
842"
). The new standard is based on the principle that entities should recognize assets and liabilities arising from leases. The new standard's primary change is the requirement for entities to recognize a lease liability for payments and a right of use asset representing the right to use the leased asset during the term on most operating lease arrangements. We adopted the standard effective
September 30, 2019,
the
first
day of fiscal year
2020.
 
We elected the package of practical expedients which permits the Company to
not
reassess under the new standard the prior conclusions about lease identification, lease classification, or initial direct costs. In addition, we did reassess whether existing land easements which were previously
not
accounted for as leases are or contain leases under the new guidance. We have elected to combine non-lease and lease components when accounting for leases. The Company has made a policy election to exclude short-term leases, those with an original term of less than
twelve
months, from recognition and measurement under  AS
842.
As such, we have
not
recognized a right-of-use (“ROU”) asset or lease liability for these leases. Additional information and disclosures required by this new standard are contained in Note
6.
 
 
Recently Issued Accounting Standards - Standards
Not
Yet Adopted
 
In
June 2016,
the FASB issued a new standard to replace the incurred loss impairment methodology under then current GAAP 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 will be required to use a forward-looking expected credit loss model for both accounts receivables and other financial instruments. The new standard will be adopted beginning
September 30, 2020
using a modified retrospective approach through a cumulative-effect adjustment to retained earnings as of the effective date to align our credit loss methodology with the new standard. We are currently evaluating the impact of this standard on our consolidated financial statements.