MNI » Topics » Operating Expenses:

These excerpts taken from the MNI 10-K filed Mar 3, 2009.

Operating Expenses:

 

Operating expenses in fiscal 2008 decreased by $3.1 billion compared to fiscal 2007. Operating expenses in 2008 included $44.7 million in severance and benefit plan curtailment costs related to the Company’s restructuring plans and $59.6 million related to impairment charges for newspaper mastheads. Operating expenses in 2007 included a $3.0 billion charge for impairment of goodwill and newspaper mastheads.

 

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Management believes that reviewing underlying operating expenses from continuing operations, which excludes charges related to impairments and restructuring, provides meaningful supplemental information about the Company’s underlying results of operations, and assists investors and financial analysts in analyzing and forecasting future periods. The following table summarizes underlying operating expenses from continuing operations (in thousands):

 

     2008

   2007

Total operating expenses from continuing operations

   $ 1,738,854    $ 4,826,315

Less goodwill and masthead impairment

     59,563      2,992,046

Less restructuring related charges

     44,705      —  
    

  

Underlying operating expenses from continuing operations

   $ 1,634,586    $ 1,834,269
    

  

 

Underlying operating expenses from continuing operations decreased $199.7 million or 10.9% year-over -year in fiscal 2008 versus fiscal 2007. Compensation expenses decreased $89.2 million or 9.8% from 2007 and included charges related to the Company’s restructuring programs in 2008. Excluding the effect of the restructuring, compensation expense was down 14.7%. Excluding the restructuring charges, payroll was down 12.4% and fringe benefits costs declined 23.9% reflecting a 14.5% decrease in average headcount and lower retirement and medical costs. Newsprint and supplements expense was down 9.0% with newsprint expense down 9.0%, primarily reflecting lower newsprint usage. Supplements expense was down 9.1%. Depreciation and amortization expenses were down 3.8% from fiscal 2007. Other operating costs were down 7.1%, reflecting company-wide cost controls.

 

Operating Expenses:

 

Operating expenses in fiscal 2008 decreased by $3.1 billion compared to fiscal 2007. Operating expenses in 2008 included $44.7 million in severance and benefit plan curtailment costs related to the Company’s restructuring plans and $59.6 million related to impairment charges for newspaper mastheads. Operating expenses in 2007 included a $3.0 billion charge for impairment of goodwill and newspaper mastheads.

 

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Table of Contents

Management believes that reviewing underlying operating expenses from continuing operations, which excludes charges related to impairments and restructuring, provides meaningful supplemental information about the Company’s underlying results of operations, and assists investors and financial analysts in analyzing and forecasting future periods. The following table summarizes underlying operating expenses from continuing operations (in thousands):

 

     2008

   2007

Total operating expenses from continuing operations

   $ 1,738,854    $ 4,826,315

Less goodwill and masthead impairment

     59,563      2,992,046

Less restructuring related charges

     44,705      —  
    

  

Underlying operating expenses from continuing operations

   $ 1,634,586    $ 1,834,269
    

  

 

Underlying operating expenses from continuing operations decreased $199.7 million or 10.9% year-over -year in fiscal 2008 versus fiscal 2007. Compensation expenses decreased $89.2 million or 9.8% from 2007 and included charges related to the Company’s restructuring programs in 2008. Excluding the effect of the restructuring, compensation expense was down 14.7%. Excluding the restructuring charges, payroll was down 12.4% and fringe benefits costs declined 23.9% reflecting a 14.5% decrease in average headcount and lower retirement and medical costs. Newsprint and supplements expense was down 9.0% with newsprint expense down 9.0%, primarily reflecting lower newsprint usage. Supplements expense was down 9.1%. Depreciation and amortization expenses were down 3.8% from fiscal 2007. Other operating costs were down 7.1%, reflecting company-wide cost controls.

 

Operating Expenses:

 

Operating expenses in fiscal 2008 decreased by $3.1 billion compared to fiscal 2007. Operating expenses in 2008 included $44.7 million in severance and benefit plan curtailment costs related to the Company’s restructuring plans and $59.6 million related to impairment charges for newspaper mastheads. Operating expenses in 2007 included a $3.0 billion charge for impairment of goodwill and newspaper mastheads.

 

25


Table of Contents

Management believes that reviewing underlying operating expenses from continuing operations, which excludes charges related to impairments and restructuring, provides meaningful supplemental information about the Company’s underlying results of operations, and assists investors and financial analysts in analyzing and forecasting future periods. The following table summarizes underlying operating expenses from continuing operations (in thousands):

 

     2008

   2007

Total operating expenses from continuing operations

   $ 1,738,854    $ 4,826,315

Less goodwill and masthead impairment

     59,563      2,992,046

Less restructuring related charges

     44,705      —  
    

  

Underlying operating expenses from continuing operations

   $ 1,634,586    $ 1,834,269
    

  

 

Underlying operating expenses from continuing operations decreased $199.7 million or 10.9% year-over -year in fiscal 2008 versus fiscal 2007. Compensation expenses decreased $89.2 million or 9.8% from 2007 and included charges related to the Company’s restructuring programs in 2008. Excluding the effect of the restructuring, compensation expense was down 14.7%. Excluding the restructuring charges, payroll was down 12.4% and fringe benefits costs declined 23.9% reflecting a 14.5% decrease in average headcount and lower retirement and medical costs. Newsprint and supplements expense was down 9.0% with newsprint expense down 9.0%, primarily reflecting lower newsprint usage. Supplements expense was down 9.1%. Depreciation and amortization expenses were down 3.8% from fiscal 2007. Other operating costs were down 7.1%, reflecting company-wide cost controls.

 

Operating Expenses:

 

Operating expenses in fiscal 2008 decreased by $3.1 billion compared to fiscal 2007. Operating expenses in 2008 included $44.7 million in severance and benefit plan curtailment costs related to the Company’s restructuring plans and $59.6 million related to impairment charges for newspaper mastheads. Operating expenses in 2007 included a $3.0 billion charge for impairment of goodwill and newspaper mastheads.

 

25


Table of Contents

Management believes that reviewing underlying operating expenses from continuing operations, which excludes charges related to impairments and restructuring, provides meaningful supplemental information about the Company’s underlying results of operations, and assists investors and financial analysts in analyzing and forecasting future periods. The following table summarizes underlying operating expenses from continuing operations (in thousands):

 

     2008

   2007

Total operating expenses from continuing operations

   $ 1,738,854    $ 4,826,315

Less goodwill and masthead impairment

     59,563      2,992,046

Less restructuring related charges

     44,705      —  
    

  

Underlying operating expenses from continuing operations

   $ 1,634,586    $ 1,834,269
    

  

 

Underlying operating expenses from continuing operations decreased $199.7 million or 10.9% year-over -year in fiscal 2008 versus fiscal 2007. Compensation expenses decreased $89.2 million or 9.8% from 2007 and included charges related to the Company’s restructuring programs in 2008. Excluding the effect of the restructuring, compensation expense was down 14.7%. Excluding the restructuring charges, payroll was down 12.4% and fringe benefits costs declined 23.9% reflecting a 14.5% decrease in average headcount and lower retirement and medical costs. Newsprint and supplements expense was down 9.0% with newsprint expense down 9.0%, primarily reflecting lower newsprint usage. Supplements expense was down 9.1%. Depreciation and amortization expenses were down 3.8% from fiscal 2007. Other operating costs were down 7.1%, reflecting company-wide cost controls.

 

Operating Expenses:

 

Operating expenses in fiscal 2007 increased due to the $3.0 billion charge for impairment of goodwill and newspaper mastheads and $506.0 million related primarily to expenses added by the Acquisition. On a pro forma 52-week basis, excluding the goodwill and masthead impairment charges, operating expenses were down $170.1 million or 8.5% from fiscal 2006, due primarily to a decrease in compensation expenses and newsprint and supplement expense. On a pro forma basis, compensation costs were down 7.5%, with payroll decreasing 8.0%, reflecting in part a 7.0% reduction in staffing. On a pro forma basis, fringe benefits were down 5.5%, primarily reflecting lower retirement expenses partially offset by higher medical costs. On a pro forma basis, newsprint and supplement expense was down 19.1% with both newsprint and supplement expense down 19.1%. Newsprint price declines and a decline in consumption resulted in the lower costs. On a pro forma basis, other operating costs were down 5.5% reflecting lower professional services. On a pro forma basis, depreciation and amortization expense decreased by 1.0%.

 

Operating Expenses:

 

Operating expenses in fiscal 2007 increased due to the $3.0 billion charge for impairment of goodwill and newspaper mastheads and $506.0 million related primarily to expenses added by the Acquisition. On a pro forma 52-week basis, excluding the goodwill and masthead impairment charges, operating expenses were down $170.1 million or 8.5% from fiscal 2006, due primarily to a decrease in compensation expenses and newsprint and supplement expense. On a pro forma basis, compensation costs were down 7.5%, with payroll decreasing 8.0%, reflecting in part a 7.0% reduction in staffing. On a pro forma basis, fringe benefits were down 5.5%, primarily reflecting lower retirement expenses partially offset by higher medical costs. On a pro forma basis, newsprint and supplement expense was down 19.1% with both newsprint and supplement expense down 19.1%. Newsprint price declines and a decline in consumption resulted in the lower costs. On a pro forma basis, other operating costs were down 5.5% reflecting lower professional services. On a pro forma basis, depreciation and amortization expense decreased by 1.0%.

 

Operating Expenses:

 

Operating expenses in fiscal 2007 increased due to the $3.0 billion charge for impairment of goodwill and newspaper mastheads and $506.0 million related primarily to expenses added by the Acquisition. On a pro forma 52-week basis, excluding the goodwill and masthead impairment charges, operating expenses were down $170.1 million or 8.5% from fiscal 2006, due primarily to a decrease in compensation expenses and newsprint and supplement expense. On a pro forma basis, compensation costs were down 7.5%, with payroll decreasing 8.0%, reflecting in part a 7.0% reduction in staffing. On a pro forma basis, fringe benefits were down 5.5%, primarily reflecting lower retirement expenses partially offset by higher medical costs. On a pro forma basis, newsprint and supplement expense was down 19.1% with both newsprint and supplement expense down 19.1%. Newsprint price declines and a decline in consumption resulted in the lower costs. On a pro forma basis, other operating costs were down 5.5% reflecting lower professional services. On a pro forma basis, depreciation and amortization expense decreased by 1.0%.

 

Operating Expenses:

 

Operating expenses in fiscal 2007 increased due to the $3.0 billion charge for impairment of goodwill and newspaper mastheads and $506.0 million related primarily to expenses added by the Acquisition. On a pro forma 52-week basis, excluding the goodwill and masthead impairment charges, operating expenses were down $170.1 million or 8.5% from fiscal 2006, due primarily to a decrease in compensation expenses and newsprint and supplement expense. On a pro forma basis, compensation costs were down 7.5%, with payroll decreasing 8.0%, reflecting in part a 7.0% reduction in staffing. On a pro forma basis, fringe benefits were down 5.5%, primarily reflecting lower retirement expenses partially offset by higher medical costs. On a pro forma basis, newsprint and supplement expense was down 19.1% with both newsprint and supplement expense down 19.1%. Newsprint price declines and a decline in consumption resulted in the lower costs. On a pro forma basis, other operating costs were down 5.5% reflecting lower professional services. On a pro forma basis, depreciation and amortization expense decreased by 1.0%.

 

These excerpts taken from the MNI 10-K filed Feb 28, 2008.

Operating Expenses:

STYLE="margin-top:0px;margin-bottom:-6px"> 

Operating expenses in fiscal 2007 increased due to the $3.0 billion charge
for impairment of goodwill and newspaper mastheads and $506.0 million related primarily to expenses added by the Acquisition. On a pro forma 52-week basis, excluding the goodwill and masthead impairment charges, operating expenses were down $170.1
million or 8.5% from fiscal 2006, due primarily to a decrease in compensation expenses and newsprint and supplement expense. On a pro forma basis, compensation costs were down 7.5%, with payroll decreasing 8.0%, reflecting in part a 7.0% reduction
in staffing. On a pro forma basis, fringe benefits were down 5.5%, primarily reflecting lower retirement expenses partially offset by higher medical costs. On a pro forma basis, newsprint and supplement expense was down 19.1% with both newsprint and
supplement expense down 19.1%. Newsprint price declines and a decline in consumption resulted in the lower costs. On a pro forma basis, other operating costs were down 5.5% reflecting lower professional services. On a pro forma basis, depreciation
and amortization expense decreased by 1.0%.

 

Operating Expenses:

 

Operating expenses increased $712.1 million or 115.6% in fiscal 2006 related primarily to expenses added by the Acquisition. On a pro forma 52-week basis, operating expenses were up $94.5 million or 4.9% from fiscal 2005, due primarily to the additional depreciation and amortization resulting from valuing the tangible and intangible assets acquired in the Acquisition at fair market value. On a pro forma basis, compensation costs were up 1.0%, (down 0.6% excluding pro forma stock-based compensation expense of $16.8 million), with payroll up 1.3%, reflecting merit increases offset by a 3.1% reduction in head count. On a pro forma basis, fringe benefits were up 0.2%, primarily reflecting lower retirement expenses offset by higher medical costs. On a pro forma basis, newsprint and supplement expense was up 3.6% with newsprint expense up 5.3% and supplement expense down 4.6%. Newsprint price increases were partially offset by a decline in consumption. On a pro forma basis, other operating costs increased 1.3%.

 

This excerpt taken from the MNI 10-K filed Mar 1, 2007.

Operating Expenses:

 

Operating expenses increased $13.1 million or 2.2% in fiscal 2005. Compensation costs were up 1.7%, with payroll up 0.5% reflecting merit increases offset by lower head count. Fringe benefits were up 6.6%, primarily reflecting higher retirement and medical expenses. Newsprint and supplement expense was up 4.1%. Newsprint price increases were partially offset by a decrease in consumption. Other operating costs were up 3.2% largely due to increases in postage related to new direct marketing programs and other items. Depreciation and amortization expense decreased 2.1%.

 

This excerpt taken from the MNI 10-Q filed Nov 3, 2006.

Operating Expenses:

Operating expenses increased 49.4% or $336.6 million in the first nine months of fiscal 2006 related primarily to expenses added by the Acquisition. On a pro forma basis, operating expenses were up $57.0 million or 3.4% from the first nine months of fiscal 2005. The 2006 pro forma expenses include $15.6 million in stock-based compensation expense and $8.5 million in expenses related to Knight Ridder’s analysis of strategic alternatives in the first half of fiscal 2006. On a pro forma basis, compensation costs were up 2.9%, (1.1% excluding stock-based compensation expense), with salaries up 2.8%, reflecting merit increases offset by a 3.1% reduction in head count; and fringe benefits up 3.2%, primarily reflecting higher retirement expenses. On a pro forma basis, newsprint and supplement expense was up 4.9% with newsprint expense up 6.6% and supplement expense down 3.2%. Newsprint price increases were partially offset by an 8.3% decline in consumption. On a pro forma basis, other operating costs were up 5.2% primarily due to the $8.5 million in costs to analyze strategic alternatives at Knight Ridder and other areas discussed in the quarterly comparisons. On a pro forma basis, depreciation and amortization expense declined 2.3%, reflecting the same items discussed in the quarterly comparisons.

This excerpt taken from the MNI 10-Q filed Jul 27, 2006.

Operating Expenses:

Operating expenses increased 2.5% over the first half of fiscal 2005 including $4.1 million in stock related compensation. Compensation costs were up 3.3% (1.7% excluding stock related compensation), payroll costs rose 1.9% reflecting salary increases offset by a 2.5% reduction in head count. Fringe benefit costs were up 8.3% largely due to higher medical and retirement costs. Newsprint and supplement expense was up 3.0% with newsprint prices up 12.5% and newsprint consumption down 7.4%. Supplement costs were down 4.1%. Other operating expenses increased 4.1%, largely due to higher energy costs, solicitation, professional services and bad debt expenses. Depreciation and amortization decreased 9.4%, largely reflecting the expiration of useful lives of certain intangible assets.

This excerpt taken from the MNI 10-Q filed May 10, 2006.

Operating Expenses:

Operating expenses increased 4.0% in the first fiscal quarter of 2006, including $2.3 million in stock compensation expense. Compensation costs were up 4.0%; up 2.4% excluding stock compensation expense, with payroll up 2.9%, reflecting merit increases and a 2.0% reduction in head count, and fringe benefits up 8.0%, reflecting higher retirement expenses. Newsprint and supplement expense was up 4.9% with newsprint expense up 5.7% and supplement expense down 0.3%. Newsprint prices were up 12.6% but were mostly offset by a 6.1% decline in consumption. Other operating costs were up 5.1% largely due to primarily higher energy costs, postage and higher bad debt expenses in California and Minneapolis. Depreciation and amortization expense decreased 2.0%, largely reflecting lower capital expenditures over the last several years and the expiration of useful lives of certain intangible assets.

This excerpt taken from the MNI 10-K filed Feb 23, 2006.

Operating Expenses:

 

Operating expenses increased 5.1% and were up 3.7% excluding $11.8 million of expenses from the Merced Group. The following review of expense categories excludes the expenses of the Merced Group. Management believes such an analysis is helpful to enable investors to understand the underlying performance of the Company’s historical business.

 

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Newsprint and supplement expense was up 8.9% with newsprint prices up 9.5% and newsprint consumption down 1.0%. Supplement costs were up $2.2 million. Compensation costs were up 4.4%, primarily reflecting salary increases and higher fringe benefit costs. Salaries increased 3.2% reflecting merit increases, which were offset somewhat by a decline in head count. However, fringe benefit costs rose 9.7%, largely due to $7.5 million in additional retirement and medical costs. Other operating expenses increased 2.3% primarily due to increased postage costs associated with the Company’s direct mail programs, while other costs were held in check through company-wide cost controls. Depreciation and amortization decreased $4.3 million, or 6.2%, largely reflecting lower capital expenditures over the last several years and the expiration of useful lives of certain intangible assets.

 

This excerpt taken from the MNI 10-K filed Feb 24, 2005.

Operating Expenses:

 

Operating expenses increased 5.1% and were up 3.7% excluding $11.8 million of expenses from the Merced Group. The following review of expense categories excludes the expenses of the Merced Group. Management believes such an analysis is helpful to enable investors to understand the underlying performance of the Company’s historical business.

 

Newsprint and supplement expense was up 8.9% with newsprint prices up 9.5% and newsprint consumption down 1.0%. Supplement costs were up $2.2 million. Compensation costs were up 4.4%, primarily reflecting salary increases and higher fringe benefit costs. Salaries increased 3.2% reflecting merit increases, which were offset somewhat by a decline in head count. However, fringe benefit costs rose 9.7%, largely due to $7.5 million in additional retirement and medical costs. Other operating expenses increased 2.3% primarily due to increased postage costs associated with the Company’s direct mail programs, while other costs were held in check through company-wide cost controls. Depreciation and amortization decreased $4.3 million, or 6.2%, largely reflecting lower capital expenditures over the last several years and the expiration of useful lives of certain intangible assets.

 

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