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Postretirement and Postemployment Benefits
 12 Months Ended
Sep. 28, 2025
Defined Benefit Plans and Other Postretirement Benefit Plans Disclosures [Abstract]  
Postretirement and Postemployment Benefits DEFINED BENEFIT PENSION PLAN
We are the sponsor of one single-employer defined benefit plan, which provide benefits to our certain current and former employees. On October 22, 2025, we notified plan participants that we intend to terminate the Lee Enterprises, Incorporated Pension Plan ("the Plan") on December 28, 2025. Terminating the plan creates an opportunity for plan participants to receive a one-time lump sum payout. It also eliminates pension cost uncertainty for us and allows us to focus on our core business.The termination is planned to be accomplished through a combination of lump-sum payouts to eligible participants and the purchase of a group annuity contract from an insurance company, which irrevocably transferred the pension obligation for the remaining participants.
During the year ended September 29, 2024, we offered a voluntary lump sum payment of future benefits to terminated vested participants in the defined benefit pension plan. The offer was accepted by 522 participants, representing a $22.6 million settlement of related pension plan liability. In 2024, we recognized a non-cash settlement gain of $2.4 million, which is reflected within "Curtailment/Settlement gains" on the Consolidated Statements of (Loss) Income and Comprehensive (Loss) Income. Pension plan assets and liabilities were reduced by $22.6 million.
The net periodic (benefit) cost components of our pension plan is as follows:
(Thousands of Dollars)202520242023
Service cost for benefits earned during the year55 19 
Interest cost on projected benefit obligation8,1379,274 10,368 
Expected return on plan assets(9,275)(9,382)(10,192)
Amortization of net (gain) loss—(4)10 
Amortization of prior service benefit848848 852 
Settlement gain—(2,409)— 
Curtailment gain—— — 
Net periodic pension cost (benefit)(285)(1,668)1,057 
Changes in projected benefit obligations (which approximates the accumulated benefit obligation at each period end) and plan assets are as follows:
(Thousands of Dollars)20252024
Benefit obligation, beginning of year188,528 199,187 
Service cost5 5 
Interest cost8,137 9,274 
Actuarial loss (gain)(7,491)15,703 
Benefits paid(13,655)(13,021)
Settlements— (22,620)
Benefit obligation, end of year175,524 188,528 
Fair value of plan assets, beginning of year:193,192 210,031 
Actual return on plan assets8,285 19,957 
Benefits paid(13,655)(13,021)
Administrative expenses paid(1,470)(1,155)
Settlements— (22,620)
Fair value of plan assets, end of year186,352 193,192 
Funded status10,828 4,664 
Disaggregated amounts recognized in the Consolidated Balance Sheets are as follows:
(Thousands of Dollars)September 28
2025		September 29
2024
Net pension assets10,828 4,664 
Accumulated other comprehensive income (before income taxes)14,683 8,804 
Amounts recognized in accumulated other comprehensive (loss) income are as follows:
(Thousands of Dollars)September 28
2025		September 29
2024
Unrecognized net actuarial gain17,581 12,550 
Unrecognized prior service cost(2,898)(3,746)
14,683 8,804 
We expect to recognize $0.8 million of unrecognized prior service cost in net periodic pension costs in 2025.
Assumptions
Weighted-average assumptions used to determine benefit obligations are as follows:
(Percent)September 28
2025		September 29
2024
Discount rate5.2 4.8 
Interest crediting rate2.5 2.5 
For 2025, the expected long-term return on Plan assets is 5.5%. 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)202520242023
Discount rate - service cost5.0 5.8 5.8 
Discount rate - interest cost4.5 5.5 5.7 
Expected long-term return on plan assets5.0 5.0 5.0 
For the year ended September 28, 2025, the decrease in benefit obligation is primarily driven by an increase in bond yields which increased the discount rate. For the year ended September 29, 2024, the primary driver of the decrease in benefit obligation was the payout of lump sums to certain terminated vested participants during December 2023. This was partially offset by an increase in the benefit obligation due to the decrease in discount rate.
Plan Assets
The primary objective of our investment strategy is to satisfy our pension obligations at a reasonable cost. Assets are actively invested to achieve a 100% liability hedge (which includes fixed income investments and cash).
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 AllocationActual Allocation
Asset ClassSeptember 28
2025		September 29
2024		September 28
2025		September 29
2024
Fixed Income100 100 — 95 
Common/collective funds— — 97 — 
Debt securities— — — — 
Hedge fund investments— — 1 3 
Cash and cash equivalents— — 2 2 
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 pension assets at September 28, 2025 is as follows:
(Thousands of Dollars)NAVLevel 1Level 2Level 3
Cash and cash equivalents— 3,261 — — 
Common/collective funds181,168 — — — 
Hedge fund investments1,934 — — — 
The fair value hierarchy of pension assets at September 29, 2024 was as follows:
(Thousands of Dollars)NAVLevel 1Level 2Level 3
Cash and cash equivalents—3,191——
Fixed income securities5,043—179,042 —
Hedge fund investments5,931———
There were no purchases, sales or transfers of assets classified as Level 3 in 2025 or 2024. Pension assets that are excluded from the fair value hierarchy and are measured at net asset value or "NAV", include eleven investments:
•
Return-seeking fixed income common/collective fund which focuses on the high-yielding segment of the fixed income universe. Prices aren’t publicly available. While redemptions are monthly, after year end, we submitted a full redemption for its investment, valued at approximately $4.2 million as of year end 2025.
•
Private real estate common/collective fund that invests in the U.S. core real estate market for which prices aren’t publicly available. While redemptions are quarterly,we submitted an order for a full redemption for its investment after year end, valued at approximately $4.5 million as of year end 2025.
•
U.S. long duration fixed income common/collective fund for which prices aren’t publicly available. We can redeem this fund on a daily basis. The balance of this investment was $3.1 million as of year end 2025.
•
U.S. mid duration fixed income common/collective fund for which prices aren’t publicly available. We can redeem this fund on a daily basis. The balance of this investment was $6.2 million as of year end 2025.
•
Global equity long/short common/collective hedge fund-of-funds for which prices are provided on a monthly basis. While redemptions are bi-annual, we have recently submitted a full redemption for its investment, valued at approximately $1.9 million as of year end 2025 as is waiting for the manager to distribute proceeds.
•
Passive U.S. large cap equity common/collective fund for which prices aren’t publicly available. We can redeem this fund on a daily basis. The balance of this investment was $4.9 million as of year end 2025.
•
Passive non-U.S. equity common/collective fund for which prices aren’t publicly available. We can redeem this fund on a daily basis. The balance of this investment was $1.3 million as of year end 2025.
•
Passive U.S. mid and small cap equity common/collective fund for which prices aren’t publicly available. We can redeem this fund on a daily basis. The balance of this investment was $0.8 million as of year end 2025.
•
Active U.S. and non-U.S. equity common/collective fund for which prices aren’t publicly available. We can redeem this fund on a daily basis. The balance of this investment was $20.8 million as of year end 2025.
•
U.S. intermediate credit common/collective fund for which prices aren’t publicly available. We can redeem this fund on a daily basis. The balance of this investment was $32.8 million as of 2025 year end.
•
U.S. long credit common/collective fund for which prices aren’t publicly available. We can redeem this fund on a daily basis. The balance of this investment was $102.5 million as of year end 2025.
Accumulated Other Comprehensive Income (Loss)
The following tables summarize the components of, and the changes in, accumulated other comprehensive income (loss), net of tax:
(Thousand of Dollars)
Pension and postretirement benefit plans
Balance at September 25, 2022
$16,653 
Other comprehensive income before reclassifications$10,750 
Amounts reclassified from accumulated other comprehensive income(a)(b)
$(560)
Net current period other comprehensive income (loss), net of taxes$10,190 
Balance at September 24, 2023
$26,843 
Other comprehensive loss before reclassifications$(3,924)
Amounts reclassified from accumulated other comprehensive income(a)(b)(c)
$(2,999)
Net current period other comprehensive income (loss), net of taxes$(6,923)
Balance at September 29, 2024
$19,920 
Other comprehensive loss before reclassifications$3,293 
Amounts reclassified from accumulated other comprehensive income(a)(b)
$(460)
Net current period other comprehensive income (loss), net of taxes$2,833 
Balance at September 28, 2025$22,753 
(a) Accumulated other comprehensive income (loss) component represents amortization of actuarial loss and is included in the computation of net periodic benefit cost. See Note 8 - Defined Benefit Pension Plan and Note 9 - Postretirement and Postemployment Benefits.
(b) Amounts reclassified from accumulated other comprehensive income (loss) are recorded net of tax impacts of $1.1 million $0.2 million, $0.2 million for the years ended September 28, 2025, September 29, 2024, and September 24, 2023, respectively.
(c) Amounts reclassified from accumulated other comprehensive income (loss) include a pension settlement gain of $2.4 million for the year ended September 29, 2024.
Cash Flows
Based on our forecast and the planned termination of the pension plan later in 2025, we expect to make no contributions to our pension trust in 2026.
We anticipate future benefit payments to be paid from the pension trust as follows:
(Thousands of Dollars)
202614,094 
202714,368 
202814,237 
202914,083 
203013,877 
Thereafter64,868 
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 $0.5 million and $0.6 million at September 28, 2025 and September 29, 2024, respectively.
POSTRETIREMENT AND POSTEMPLOYMENT BENEFITS
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.
During the year ended September 29, 2024, we completed the outsourcing of certain printing operations, which ceased postretirement medical benefits for a group of employees. We recognized a non-cash curtailment gain of $1.2 million which is reflected within "Curtailment/Settlement gains" on the Consolidated Statements of (Loss) Income and Comprehensive (Loss) Income.
The net periodic postretirement benefit cost (benefit) components for our postretirement plans are as follows:
(Thousands of Dollars)202520242023
Service cost for benefits earned during the year2 50 68 
Interest cost on projected benefit obligation434 596 598 
Expected return on plan assets(1,641)(1,279)(1,182)
Amortization of net actuarial gain(1,168)(1,234)(1,014)
Amortization of prior service benefit(285)(375)(647)
Curtailment gain— (1,184)— 
Net periodic postretirement benefit(2,658)(3,426)(2,177)
Changes in projected benefit obligations (which approximates the accumulated benefit obligation at each period end) and plan assets are as follows:
(Thousands of Dollars)20252024
Benefit obligation, beginning of year10,217 11,252 
Service cost2 50 
Interest cost434 596 
Actuarial (gain) loss(2,290)1,215 
Benefits paid, net of premiums received(732)(1,712)
Liability (gain)/loss due to curtailment— (1,184)
Benefit obligation, end of year7,631 10,217 
Fair value of plan assets, beginning of year27,570 25,809 
Actual return on plan assets(1,157)2,615 
Employer contributions603 858 
Benefits paid, net of premiums and Medicare Part D subsidies received(732)(1,712)
Plan participant contributions— — 
Fair value of plan assets at measurement date26,284 27,570 
Funded status18,653 17,353 
Disaggregated amounts recognized in the Consolidated Balance Sheets are as follows:
(Thousands of Dollars)September 28
2025		September 29
2024
Non-current assets22,407 23,300 
Postretirement benefit obligations(3,755)(5,947)
Accumulated other comprehensive income (before income tax benefit)15,594 17,556 
Amounts recognized in accumulated other comprehensive income (loss) before income tax benefit are as follows:
(Thousands of Dollars)September 28
2025		September 29
2024
Unrecognized net actuarial gain13,872 15,548 
Unrecognized prior service benefit1,722 2,008 
15,594 17,556 
We expect to recognize $1.0 million and $0.3 million of unrecognized net actuarial gain and unrecognized prior service benefit, respectively, in net periodic postretirement benefit in 2026.
Assumptions
Weighted-average assumptions used to determine postretirement benefit obligations are as follows:
(Percent)September 28
2025		September 29
2024
Discount rate5.0 4.6 
Expected long-term return on plan assets6.0 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.
Weighted-average assumptions used to determine net periodic benefit cost are as follows:
(Percent)202520242023
Discount rate - service cost5.2 5.2 5.9 
Discount rate - interest cost4.4 4.4 5.5 
Expected long-term return on plan assets6.0 5.0 5.0 
For 2025, the expected long-term return on plan assets is 6.0%. 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 28
2025		September 29
2024
Health care cost trend rates12.7 18.9 
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 Rate20342034
Administrative costs related to indemnity plans are assumed to increase at the health care cost trend rates noted above.
For the year ended September 28, 2025, the decrease in benefit obligation is primarily driven by an increase in bond yields which increased the discount rate. For the year ended September 29, 2024, the most significant driver of the decrease in benefit obligations for the plans was a curtailment disclosed in the prior year.
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 28, 2025 and September 29, 2024 is $0.6 million and $0.5 million, 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 AllocationActual Allocation
Asset ClassSeptember 28 2025September 29
2024		September 28
2025		September 29
2024
Equity securities- short term bond fund25 25 99 25 
Fixed income securities75 75 — 73 
Hedge fund investment— — 1 — 
Cash and cash equivalents— — — 2 
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 28, 2025 is as follows:
(Thousands of Dollars)NAVLevel 1Level 2Level 3
Cash and cash equivalents— 43 — — 
Equity securities (including short term bond fund)
— 26,482 — — 
Hedge fund investment213 — — — 
The fair value hierarchy of postretirement assets at September 29, 2024 is as follows:
(Thousands of Dollars)NAVLevel 1Level 2Level 3
Cash and cash equivalents— 436 — — 
Equity securities— 6,983 — — 
Fixed income securities— 20,392 — — 
Hedge fund investment236 — — — 
There were no purchases, sales or transfers of assets classified as Level 3 in 2025 or 2024. Postretirement assets that are excluded from the fair value hierarchy and are measured at net asset value or "NAV", include one investment in global equity long/short common/collective hedge fund-of-funds for which prices are provided on a monthly basis and is valued at approximately $0.2 million, as of September 28, 2025 and September 29, 2024.
Cash Flows
Based on our forecast at September 28, 2025, we do not expect to contribute to our postretirement plans in 2025.
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)Net
Payments
2026695
2027703
2028708
2029706
2030700
Thereafter3,196
Postemployment Plan
Our postemployment benefit obligation, which represents certain disability benefits, was $1.6 million at September 28, 2025 and $1.6 million at September 29, 2024.