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COMBINED NOTES TO CONSOLIDATED FINANCIAL STATEMENTS (continued)
(Dollars in thousands, except per share amounts)
I-35
NOTE 5. RESTRUCTURING EXPENSE (CREDITS)
The following table summarizes the Newsday restructuring expense (credits) recognized during 2009,
2010 and 2011 in connection with its restructuring plans:
Employee
Severance
Facility
Realignment
Costs Other Costs Total
Restructuring liability at
December 31, 2008 ............................
.
$ 5,166 $ 526 $ 329 $ 6,021
Charges incurred ...................................
.
3,401 (a) 3,048 47 6,496
Write-down of assets and other
adjustments ........................................
.
- (2,138) - (2,138)
Payments ...............................................
.
(5,504) (531) (44) (6,079)
Restructuring liability at
December 31, 2009 ............................
.
3,063 905 332 4,300
Charges (credits) incurred .....................
.
(71) 262 (3) 188
Payments ...............................................
.
(3,091) (1,167) (45) (4,303)
Restructuring liability at
December 31, 2010 ............................
.
(99) - 284 185
Charges (credits) incurred .....................
.
5,790 (b) - (284) 5,506
Payments ...............................................
.
(37) - - (37)
Restructuring liability at
December 31, 2011 ............................
.
$ 5,654 $ - $ - $ 5,654
______________
(a) Employee severance related to the elimination of 106 positions, primarily in the operations, editorial, sales and
advertising departments of the Newsday business and positions at Island Publications which was shut down in
December 2008.
(b) Employee severance related to the elimination of 97 positions, primarily within the Newsday business.
In addition to the charges (credits) included in the table above, the Company recorded net restructuring
expense (credits) of $805, $(246) and $(913) in 2011, 2010 and 2009, respectively, primarily relating to
changes to the Company's previous estimates recorded in connection with the Company's 2001, 2002 and
2006 facility realignment plans.
NOTE 6. IMPAIRMENT CHARGES
Goodwill and indefinite-lived intangible assets are tested annually for impairment during the first quarter
of each year or earlier upon the occurrence of certain events or substantive changes in circumstances. As
a result of the continuing deterioration of values in the newspaper industry and the greater than
anticipated economic downturn and its current and anticipated impact on Newsday's advertising business,
the Company determined that a triggering event had occurred and the Company tested indefinite-lived
intangibles and goodwill for impairment as of December 31, 2011, 2010 and 2009 (the "interim testing
dates").
The Company determined the fair value of the Newsday business based on a combination of the estimated
fair market values determined under the income approach and the market approach. The income
approach utilizes a discounted cash flow valuation methodology, which requires the exercise of
significant judgments, including judgments about appropriate discount rates based on the assessment of
risks inherent in the projected future cash flows including the cash flows generated from synergies from a
market participant's point of view, and the amount and timing of expected future cash flows, including
expected cash flows beyond the Company's current long-term business planning period. The market
approach measures fair value using market multiples of various financial measures compared to a set of