10-K

UNITED STATES

SECURITIES AND EXCHANGE COMMISSION

Washington, D.C.  20549

FORM 10-K

Annual Report Pursuant to Section13 or 15(d) of the Securities Exchange Act of 1934

For the fiscal year ended December 30, 2012

Commission File Number:  1-31805

JOURNAL COMMUNICATIONS, INC.

(Exact name of Registrant as specified in its charter)

Wisconsin	20-0020198
(State of incorporation)	(I.R.S. Employer identification number)
333 West State Street, Milwaukee, Wisconsin	53203
(Address of principal executive offices)	(Zip Code)

Registrant’s telephone number, including area code:  (414) 224-2000

Securities registered pursuant to Section 12(b) of the Act:

Title of Class	Name of Each Exchange on Which Registered
Class A Common Stock, $0.01 par value per share	The New York Stock Exchange

Securities registered pursuant to Section 12(g) of the Act:

Class B Common Stock, $0.01 par value per share

Indicate by check mark if the registrant is a well-known seasoned issuer, as defined in Rule 405 of the Securities Act. Yes o No x

Indicate by check mark whether the registrant is not required to file reports pursuant to Section 13 or Section 15(d) of the Exchange Act. Yes o No x

Indicate by check mark whether the Registrant (1) has filed all reports required to be filed by Section 13 or 15(d) of Securities Exchange Act of 1934 during the preceding 12 months (or for such shorter period that the Registrant was required to file such reports) and (2) has been subject to such filing requirements for the past 90 days.  Yes x No o

Indicate by check mark whether the registrant has submitted electronically and posted on its corporate Web site, if any, every Interactive Data File required to be submitted and posted pursuant to Rule 405 of Regulation S-T during the preceding 12 months (or for such shorter period that the registrant was required to submit and post such files) (Registrant is not yet required to provide financial disclosure in an Interactive Data File format).  Yes x No o

Indicate by check mark if disclosure of delinquent filers pursuant to Item 405 of Regulation S-K (Section 229.405 of this chapter) is not contained herein, and will not be contained, to the best of registrant’s knowledge, in definitive proxy or information statements incorporated by reference in Part III of this Form 10-K or any amendment to this Form 10-K. o

Indicate by check mark whether the registrant is a large accelerated filer, an accelerated filer, non-accelerated filer or a smaller reporting company.  See definitions of “large accelerated filer,” “accelerated filer,” and “smaller reporting company” in Rule 12b-2 of the Exchange Act.

Large Accelerated Filer o Accelerated Filer x Non-accelerated Filer o Smaller reporting company o

Indicate by check mark whether the registrant is a shell company (as defined in Rule 12b-2 of the Exchange Act) Yes o No x

The aggregate market value of the class A common stock held by non-affiliates of the registrant as of June 22, 2012 was approximately $216,765,751 (based on the closing price of such stock on the New York Stock Exchange, Inc. as of such date).  The registrant’s class B common stock is not listed on a national securities exchange or traded in an organized over-the-counter market, but each share of the registrant’s class B common stock is convertible into one share of the registrant’s class A common stock.

Number of shares outstanding of each of the issuer’s classes of common stock as of March 1, 2013:

Class	Outstanding at March 1, 2013
Class A Common Stock	43,899,338
Class B Common Stock	6,730,298
Class C Common Stock	-

Documents Incorporated by Reference

Portions of the Proxy Statement for our May 7, 2013 Annual Meeting of Shareholders are incorporated by reference into Part III.

JOURNAL COMMUNICATIONS, INC.

INDEX TO FORM 10-K

		Page No.
Part I
Item 1.	Business	2
Item 1A.	Risk Factors	15
Item 1B.	Unresolved Staff Comments	25
Item 2.	Properties	26
Item 3.	Legal Proceedings	27
Item 4.	Mine Safety Disclosures	28
Part II
Item 5.	Market for Registrant’s Common Equity, Related Stockholder Matters and Issuer Purchases of Equity Securities	28
Item 6.	Selected Financial Data	31
Item 7.	Management’s Discussion and Analysis of Financial Condition and Results of Operations	33
Item 7A.	Quantitative and Qualitative Disclosures About Market Risk	54
Item 8.	Financial Statements and Supplementary Data	55
Item 9.	Changes in and Disagreements with Accountants on Accounting and Financial Disclosure	92
Item 9A.	Controls and Procedures	92
Item 9B.	Other Information	92
Part III
Item 10.	Directors, Executive Officers and Corporate Governance	92
Item 11.	Executive Compensation	93
Item 12.	Security Ownership of Certain Beneficial Owners and Management and Related Stockholder Matters	93
Item 13.	Certain Relationships and Related Transactions, and Director Independence	93
Item 14.	Principal Accounting Fees and Services	93
Part IV
Item 15.	Exhibits, Financial Statement Schedules	94
Signatures		96
Index to Exhibits		97

Forward-Looking Statements

We make certain statements in this Annual Report on Form 10-K (including the information that we incorporate by reference herein) that are “forward-looking statements” within the meaning of the Section 21E of the Securities Exchange Act of 1934, as amended.  We intend these forward-looking statements to be covered by the safe harbor provisions for forward-looking statements contained in that Act, and we are including this statement for purposes of those safe harbor provisions.  These forward-looking statements generally include all statements other than statements of historical fact, including statements regarding our future financial position, business strategy, budgets, projected revenues and expenses, expected regulatory actions and plans and objectives of management for future operations.  We often use words such as “may,” “will,” “intend,” “anticipate,” “believe,” or “should” and similar expressions in this Annual Report on Form 10-K to identify forward-looking statements.  These forward-looking statements are not guarantees of future performance and are subject to risks, uncertainties and other factors, some of which are beyond our control.  These risks, uncertainties and other factors could cause actual results to differ materially from those expressed or implied by those forward-looking statements.  Among such risks, uncertainties and other factors that may impact us are the following, as well as those contained in Item 1A. “Risk Factors” of this Annual Report on Form 10-K:

· changes in advertising demand or the buying strategies of advertisers or the migration of advertising to digital platforms;

· changes in newsprint prices and other costs of materials;

· changes in federal or state laws and regulations or their interpretations (including changes in regulations governing the number and types of broadcast and cable system properties, newspapers and licenses that a person may control in a given market or in total or the changes in spectrum allocation policies);

· changes in legislation or customs relating to the collection, management and aggregation and use of consumer information through telemarketing and electronic communication efforts;

· the availability of quality broadcast programming at competitive prices;

· changes in network affiliation agreements, including increased costs;

· quality and rating of network over-the-air broadcast programs, including programs changing networks and changing competitive dynamics regarding how and when programs are made available to our viewers;

· effects of the loss of commercial inventory resulting from uninterrupted television news coverage and potential advertising cancellations due to war, terrorist acts, or other significant events;

· effects of the rapidly changing nature of the publishing, broadcasting and printing industries, including general business issues, competitive issues and the introduction of new technologies;

· an other than temporary decline in operating results and enterprise value that could lead to further non-cash impairment charges due to the impairment of goodwill, broadcast licenses, other intangible assets and property, plant and equipment;

· the impact of changing economic and financial market conditions and interest rates on our liquidity, on the value of our pension plan assets and on the availability of capital;

· our ability to remain in compliance with the terms of our credit agreement;

· changes in interest rates or statutory tax rates;

· the outcome of pending or future litigation;

· energy costs;

· the availability and effect of acquisitions, investments, dispositions and other capital expenditures including share repurchases on our results of operations, financial condition or stock price; and

· changes in general economic conditions.

We caution you not to place undue reliance on these forward-looking statements, which we have made as of the date of this Annual Report on Form 10-K.

1

PART I

ITEM 1. BUSINESS

Overview

Our business segments are based on the organizational structure used by management for making operating and investment decisions and for assessing performance.  Our reportable business segments are: (i) broadcasting; (ii) publishing; and (iii) corporate.  Our broadcasting segment consists of 34 radio stations and 15 television stations in 12 states.  The television stations include WACY-TV in Appleton, Wisconsin that we purchased on October 22, 2012 and was previously operated under a local marketing agreement (LMA) and WTVF-TV in Nashville, Tennessee that we purchased on December 6, 2012.  Results from our digital media assets are included in our broadcasting and publishing segments.  Our publishing segment consists of the Milwaukee Journal Sentinel, which serves as the only major daily newspaper for the Milwaukee metropolitan area, and several community publications - primarily in southeastern Wisconsin - as well as print facilities in Milwaukee and Waupaca, Wisconsin.  Our corporate segment consists of unallocated corporate expenses and revenue eliminations.

We were founded in 1882 as a newspaper publisher serving Milwaukee, Wisconsin.  Our media business mix was expanded in 1927 when we signed on radio station WTMJ-AM, and again in 1947 when we put WTMJ-TV on the air.  In 1937, Harry J. Grant founded our employee ownership plan, which contributed significantly to our company’s positive culture and growth through its termination in 2003, in conjunction with our initial public offering.  We believe our current capital structure allows us to continue our longstanding tradition of employee ownership.  We have been able to attract and retain motivated people who have a passion for the business and a level of commitment and sense of accountability that is heightened due to our business culture and employees’ ability to participate in ownership.  Our culture is reinforced by our strong commitment to high ethical standards.

Our revenue was $400.0 million, $356.8 million, and $376.8 million in 2012, 2011, and 2010, respectively.  The revenue generated by our operating segments as a percentage of our consolidated revenue for the last three years is shown below:

	2012			2011			2010
Broadcasting		58.9	%		52.2	%		51.6	%
Publishing		41.2			47.9			48.5
Corporate eliminations		(0.1	)		(0.1	)		(0.1	)
Total		100.0	%		100.0	%		100.0	%

More information regarding us is available at our website at www.journalcommunications.com.  We are not including the information contained on our website as part of, or incorporating it by reference into, this Annual Report on Form 10-K.  Our Annual Report on Form 10-K, Quarterly Reports on Form 10-Q, Current Reports on Form 8-K and any amendments to those reports are made available to the public at no charge, other than a reader’s own Internet access charges, through a link appearing on our website.  We provide access to such material through our website as soon as reasonably practicable after we electronically file such material with, or furnish it to, the Securities and Exchange Commission (SEC).

Broadcasting

Our broadcasting business is conducted through our wholly owned subsidiary, Journal Broadcast Corporation, and its subsidiaries, which together operate 34 radio stations and 15 television stations in 12 states.  Our broadcasting business accounted for 58.9% of our revenue for the year ended December 30, 2012.  See “Management’s Discussion and Analysis of Financial Condition and Results of Operations” and Note 14, “Segment Reporting,” to our consolidated financial statements for additional financial information regarding our broadcasting business.

Our radio and television stations focus on providing targeted and relevant local programming that is responsive to the interests of the communities in which we compete.  We promote a local focus that allows our stations and radio clusters to serve listeners, viewers and advertisers effectively.  Our local focus strengthens each station’s brand identity and allows our stations to provide effective marketing solutions for advertisers by reaching their targeted audiences.

In an effort to maximize our operating margins, we have implemented a centralized management approach to certain functions such as IT, billing, finance, purchasing and human resources to generate economies of scale and incorporate best practices.  We intend to continue to pursue market share and invest in ratings growth which we believe will generate increased revenue and drive improvement in operating margin.  We will also continue to diligently manage our expenses and make prudent investments to drive revenue.

2

In six of our markets, Milwaukee, Wisconsin; Boise, Idaho; Tucson, Arizona; Omaha, Nebraska; Palm Springs, California and Green Bay, Wisconsin, we either operate both television and radio stations or operate more than one television station.  We believe multiple properties in a market help us to better serve advertisers, viewers and listeners and help maximize our revenue and operating margins.

Television Broadcasting

Based on the November 2012 Nielsen ratings book, we are ranked among the top three stations in terms of station audience rating in nine of the eleven markets in which our television stations operate.  WTMJ-TV, our Milwaukee television station, had the top-rated late night local newscast (Monday-Friday) in its Designated Market Area (DMA) in 83 of the previous 90 ratings periods (based on the percentage of the total potential household audience).  In 2012, revenue from television operations accounted for 67.6% of our broadcasting revenue.

Our television stations are:

Station					Total	Expiration	Expiration
and			Station	Station	Stations	Date of	Date of
Network		Year	Market	Audience	in	Network	FCC
Affiliation	Market	Acquired	Rank(1)	Share(1)	Market(2)	Affiliation	License(3)
WTMJ-TV NBC	Milwaukee, WI	1947	3	9	17	3/15/2013	12/1/2005(4)
KTNV-TV ABC	LasVegas, NV	1979	4	5	16	12/31/2017	10/1/2014
WSYM-TV FOX	Lansing, MI	1984	3	8	7	12/31/2014	10/1/2013
KMIR-TV NBC	Palm Springs, CA	1999	3+	6	10	3/15/2013	12/1/2014
KPSE-LP MNT (5)(6)	Palm Springs, CA	2008	N/A	N/A	10	9/28/2014	12/1/2014
KIVI-TV ABC	Boise, ID	2001	3	6	12	12/31/2017	10/1/2014
KNIN0TV FOX	Boise, ID	2009	4	3	12	12/31/2014	10/1/2014
KSAW-LD ABC (7)	Twin Falls, ID	2001	4+	4	8	12/31/2017	10/1/2014
WGBA-TV NBC	Green Bay/Appleton, WI (8)	2004	4	6	8	3/15/2013	12/1/2013
WACY-TV MNT (5)	Green Bay/Appleton, WI (8)	2004	N/A	N/A	8	9/28/2014	12/1/2005(4)
KGUN-TV ABC	Tucson, AZ	2005	3	9	17	12/31/2017	10/1/2014
KWBA-TV CW (5)	Tucson, AZ	2008	N/A	N/A	17	8/31/2016	10/1/2014
WFTX-TV FOX	Naples/Fort Myers, FL	2005	4+	5	9	12/31/2014	2/1/2013(4)
KMTV-TV CBS	Omaha, NE	2005	3	9	9	9/18/2016	6/1/2014
WTVF-TV CBS	Nashville, TN	2012	1	14	10	7/2/2015	8/1/2013

(1) Station market rank is based upon station audience ratings, which equal the percentage of the total potential household audience in the DMA.  Station audience share equals the percentages of the audience in the DMA actually watching our television station.  The percentages are based on surveys conducted 5:00 a.m. to 2:00 a.m., seven days a week, as published in the November 2012 Nielsen ratings book.  A “+” indicates a tie with another station in the market.

(2) Includes all television stations whose city of origin is within the DMA that meet the minimum reporting standards.

(3) Federal Communications Commission (FCC) (aka broadcast) licenses are granted for maximum terms of eight years and are subject to renewal upon application to the FCC.  Refer to “Regulation” for further discussion of the FCC license renewal process.

(4) Renewal pending.

(5) KPSE-LP, WACY-TV and KWBA-TV did not qualify to be reported in the November 2012 Nielsen ratings book.

(6) Low-power analog television station.

(7) Low-power digital television station.

(8) Green Bay, WI and Appleton, WI are considered one DMA.

The affiliation by a station with one of the four major networks (NBC, ABC, CBS and FOX) has a significant impact on the composition of the station’s programming, revenue, expenses and operations.  Lower ratings of network programming can have an adverse affect on revenue.

3

We believe all of our television stations are strong affiliates with good relationships with the respective networks.  In all of our markets and regardless of network affiliation, we focus on delivering leading local news programming, locally produced programming and contracting for popular syndicated programming with the objective of maximizing our ratings and, in turn, our share of advertising spending in a given market.

Political and issue and automotive advertising are our most significant broadcasting revenue categories.  Television advertising revenue and rates in even-numbered years typically benefit from political and issue and Olympic advertising.  As the demand for advertising increases on the limited available inventory, we have the opportunity to increase the average unit rates we charge our customers.  Television political and issue advertising revenue was $34.8 million in 2012 compared to $4.1 million in 2011.  Olympics-related advertising on our three NBC affiliates was $2.7 million in 2012.  NBC has purchased the right to broadcast the Olympics through 2020.  Automotive advertising revenue increased by $5.3 million, or 26.2%, in 2012 compared to 2011.

We currently have retransmission consent agreements with Multichannel Video Programming Distributors (MVPDs) in our local markets for the rights to distribute our signals and local programming in their pay television services to consumers.  Our television stations experienced a $2.3 million, or 27.4%, increase in retransmission consent revenue in 2012 due to contractual annual rate increases and the effective renewal dates of several contracts.  These agreements are for multiple years with set rate increases and are based upon the number of subscribers to the MVPDs systems.

We have made substantial investments in digital transmission equipment at our stations and are fully compliant with FCC mandates on digital transmission.  We anticipate investing in digital infrastructure in several of our television markets as we make the continuing transition to HDTV (high-definition television).  Also, we expect these investments to create additional operating efficiencies and improve the transfer of program content to our Internet websites.

Radio Broadcasting

Based on the Fall 2012 Arbitron ratings book, we have the number one station in terms of station audience rank in two of the eight clusters in which our radio stations operate.  We have grown our radio operations primarily through acquisitions of stations in mid-sized growth markets.  In 2012, revenue from radio operations accounted for 32.4% of our broadcasting revenue.

4

Our radio stations are:

				Total		Expiration
			Station	Stations	FCC	Date of
Market and	Year		Audience	in	License	FCC
Station	Acquired	Format	Rank(1)	Market(2)	Class(3)	License(4)
Milwaukee, WI
WTMJ-AM (5)	1927	News/Talk/Sports	2	35	B	12/1/2012(6)
WLWK-FM (5)	1959	Variety Hits	7+	35	B	12/1/2012(6)
Omaha, NE
KEZO-FM (5)	1995	Rock	7	19	C	6/1/2013
KKCD-FM (5)	1995	Classic Rock Adult	6	19	C2	6/1/2013
KSRZ-FM (5)	1998	Contemporary	8	19	C	6/1/2013
KXSP-AM	1999	Sports	17	19	B	6/1/2013
KQCH-FM (5)	1999	Contemporary Hits	3+	19	C	6/1/2013
Tucson, AZ
KFFN-AM	1996	Sports (Simulcast)	17	23	C	10/1/2013
KMXZ-FM (5)	1996	Contemporary	2	23	C	10/1/2013
KQTH-FM (5)	1996	News/Talk	10	23	A	10/1/2013
KTGV-FM	1998	Rhythmic AC	11	23	C2	10/1/2013
Knoxville, TN
WCYQ-FM (5)	1997	Country	7+	20	A	8/1/2012(6)
WWST-FM (5)	1997	Contemporary Hits	4	20	C1	8/1/2012(6)
WKHT-FM (5)	1998	Contemporary Hits/Rhythmic	5	20	A	8/1/2012(6)
Boise, ID
KJOT-FM	1998	Rock	13	24	C	10/1/2013
KQXR-FM	1998	Active Rock	11	24	C1	10/1/2013
KTHI-FM	1998	Classic Hits	4	24	C	10/1/2013
KRVB-FM	2000	Adult Alternative	12	24	C	10/1/2013
Wichita, KS
KFDI-FM (5)	1999	Country	1	22	C	6/1/2013
KICT-FM (5)	1999	Rock	7+	22	C1	6/1/2013
KFXJ-FM (5)	1999	Classic Rock	12+	22	C2	6/1/2013
KLIO-AM	1999	Oldies	19+	22	B	6/1/2013
KYQQ-FM	1999	Regional Mexican	17+	22	C	6/1/2013
KFTI-FM	2000	Classic Country	10	22	C1	6/1/2013
Springfield, MO
KSGF-AM/FM	1999/2003	News/Talk (Simulcast)	3+	18	B/C3	2/1/2021
KTTS-FM	1999	Country	1	18	C	2/1/2021
KSPW-FM	1999	Contemporary Hits	2	18	C2	2/1/2021
KRVI-FM	2003	Variety Hits	10+	18	C3	2/1/2021
Tulsa, OK
KFAQ-AM (5)	1999	News/Talk	11	23	A	6/1/2013
KVOO-FM (5)	1999	Country	3	23	C	6/1/2013
KXBL-FM (5)	1999	Classic Country	10	23	C1	6/1/2013
KHTT-FM	2012	Contemporary Hits	6	23	C	6/1/2013
KBEZ-FM	2012	Adult Contemporary Variety	16	23	C	6/1/2013

5

(1) Station audience rank equals the ranking of each station, in its market, according to the Fall 2012 Arbitron ratings book.  The diary ranking is determined based on the estimated share of persons 12 years and older and the Portable People Meter (PPM) ranking is based on the estimated share of persons six years and older listening during an average 15-minute increment (also known as "average quarterly hour," or "AQH," share) occurring Monday-Sunday between 6:00 a.m. and midnight. A "+" indicates a tie with another station in the market.

(2) Includes stations qualified to be reported in the Fall 2012 Arbitron ratings book.  To be reported in a diary market, a station must have met the following requirements among persons 12 years and older occurring Monday-Sunday between 6:00 a.m. and midnight:

a) Must be credited for at least one quarter-hour in at least 10 in-tab diaries, have a metro cume rating of 0.495 or greater and a metro AQH rating of 0.05 or greater.

To be reported in a PPM market, a station must have met the following requirements among persons six years and older occurring Monday-Sunday between 6:00 a.m. and midnight:

a) Must have received at least one quarter-hour of listening credit from at least one in-tab panelist and have a metro cume rating of 0.495 or greater.

(3) The FCC license class is a designation for the type of license based upon the radio broadcast service area according to radio broadcast rules compiled in the Code of Federal Regulations.

(4) FCC (aka broadcast) licenses are granted for maximum terms of eight years and are subject to renewal upon application to the FCC.  Refer to “Regulation” for further discussion of the FCC license renewal process.

(5) Stations that are broadcasting in digital.

(6) Renewal pending.

We employ a variety of sales-related and programming strategies.  Our sales-related strategies include maximizing our share of the advertising spending.  We believe development of local station clusters allows us to maximize market share because it allows us to offer a variety of format alternatives to appeal to a broader range of local advertisers.  Our programming strategy includes developing and retaining local on-air talent to drive ratings.  We have long-term contracts with many of our on-air personalities.  In addition, our Milwaukee radio station, WTMJ-AM, currently maintains exclusive radio broadcast rights for the Green Bay Packers, Milwaukee Brewers and Milwaukee Bucks, and operates a statewide network for their games.  WTMJ-AM also carries Wisconsin Badgers football and basketball broadcasts.

Most of our radio broadcasting revenue is generated from the sale of local advertising, which includes non-traditional advertising programs.  Non-traditional advertising refers to initiatives which attract new local advertisers, including the creation of new local content and programs that combine television, radio or print with digital.  The balance of broadcasting revenue is generated from the sale of national advertising, political and issue advertising and other sources.  We have predetermined the number of commercials that are broadcast each hour, depending on the format of a particular station.  We attempt to determine the number of commercials broadcast hourly that can maximize available revenue dollars without diminishing listening levels.  Although the number of advertisements broadcast during a given time period may vary, the total number of advertisements broadcast on a particular station generally does not vary significantly from year to year, unless there has been a format change.

We have aligned our radio stations in clusters within a market, in many cases building out the cluster around a lead station.  We seek to build a unique and differentiated brand position at each station within a cluster so that we can offer distinct solutions for a variety of advertisers in any given market.  This clustering strategy has allowed us to target our stations’ formats and sales efforts to better serve advertisers and listeners as well as leverage operating expenses to maximize the performance of each station and the cluster.

Industry and Competition

We compete with other radio and television stations, newspapers, cable television, satellite television and radio, mobile, direct mail services, billboards and the Internet for advertising dollars.  In the future, we may also compete with newer digital platforms including wireless Internet technology in the automobile.  We believe some of the factors an advertiser considers when choosing an advertising medium include its overall marketing strategy and the ability to reach its targeted audience in the most cost-effective manner.  In both radio and television broadcasting, revenue is derived primarily from advertising.  Ratings, which estimate the number of listeners or viewers tuning in to a given station, highly influence competition in broadcasting because they affect the advertising rates the broadcaster can charge—higher ratings generally mean the broadcaster can charge higher rates for advertising.  By having a cluster of several stations within one market, we can offer advertisers the opportunity to purchase air time on more than one of our stations in order to reach a broader audience.

6

Revenues in the broadcast industry are derived primarily from the sale of advertising time from local, national, political and issue revenue, retransmission fees and, to a lesser extent, from barter, digital revenues and other revenues.  Because television and radio broadcasters rely upon advertising revenue, they are subject to cyclical changes in the economy.  The size of advertisers’ budgets, which are affected by broad economic trends, affects the radio industry in general and the revenue of individual television stations, in particular.  Other than the political and issue and automotive categories, our broadcasting business continues to experience an uneven economic recovery across the markets in which we operate due to continued challenges in employment and the housing markets.  Our broadcasting business also is affected by audience fragmentation as audiences have an increasing number of options to access news, syndicated programs and other programming.

Changes in market demographics, the entry of competitive stations, the adoption of competitive formats by existing stations and the inability to retain popular on-air talent could result in lower ratings, which could in turn reduce advertising revenue.  Technology can play an important role in competition as the ratings each station receives also depend upon the strength of the station’s signal in each market and, therefore, the number of listeners who have access to the signal.  We continue to invest in the technology needed to maintain, and, where possible, strengthen our signals.

Commercial television stations generally fall into one of three categories. The first category of stations includes those affiliated with one of the four major national networks (NBC, ABC, CBS and FOX). The second category includes stations affiliated with more recently developed national networks, such CW and MyNetwork TV (MNT). The third category includes independent stations that are not affiliated with any network and rely principally on local and syndicated programming. Affiliation with a television network can have a significant influence on the revenue of a television station because the audience ratings generated by a network’s programming can affect the rates at which a station can sell advertising time. Generally, each station determines rates and receives all of the revenue, net of agency commissions, for national and local spot advertising. Increasingly, the national networks believe they are due a portion of the retransmission revenue the affiliates generate from their agreements with MVPDs in addition to network affiliation fees. Our retransmission revenue has increased significantly in recent years and we expect that retransmission revenue will continue to increase with annual contractual rate increases in our existing contracts and strategic renegotiation of expiring contracts. We recently renewed our network affiliation agreements with ABC, FOX, CW and MNT in 2011. The renewed agreements include higher retransmission fees payable to the networks, which we expect will continue to increase. There can be no assurance that we will achieve and/or maintain profitability on our retransmission agreements after accounting for payments to networks.

Seasonal revenue fluctuations are common in the broadcasting industry and are primarily due to fluctuations in advertising expenditures by retailers and automobile manufacturers.  Broadcast advertising is typically strongest in the second and fourth quarters of the year, which coincides with increased advertising around certain holidays.  Historically, the second quarter tends to show an increase in automotive advertising as well as increases in tourism and travel advertising before the summer months.  Television advertising revenue and rates in even-numbered years typically benefit from political and issue advertising because there tends to be more pressure on available inventory as the demand for advertising increases and we have the opportunity to increase average unit rates we charge our customers.

Publishing

Our publishing business is conducted through our wholly owned subsidiaries, Journal Sentinel, Inc. and Journal Community Publishing Group, Inc., and consists of our daily newspaper, the Milwaukee Journal Sentinel, and our community newspapers and shoppers.  Our publishing business accounted for 41.2% of our revenue for the year ended December 30, 2012.  Within our publishing segment, our daily newspaper accounted for 87.0% of our publishing revenue.  See “Management’s Discussion and Analysis of Financial Condition and Results of Operations” and Note 14, “Segment Reporting,” to our consolidated financial statements for additional financial information regarding our publishing business.

Daily Newspaper

Published continuously since 1882, our daily newspaper has the largest circulation among all newspapers published in Wisconsin, with a six-month average net paid circulation reported to the Audit Bureau of Circulations in our Publisher’s Statement at September 30, 2012 of 337,829 on Sunday and 207,066 daily.  The Milwaukee Journal Sentinel serves as the only major daily and Sunday newspaper for the Milwaukee metropolitan area.  According to a 2012 readership survey conducted by Scarborough Research, the Sunday Milwaukee Journal Sentinel ranks number one in readership among the 50 highest populated markets in the United States and the daily newspaper ranks number two.  Over the course of a week, readership of our print newspaper and digital websites combined ranks first among largest U.S. markets with a 60% penetration rate.  These rankings are calculated by dividing the number of adults reading an average issue of the newspaper in a newspaper’s Designated Market Area (DMA) by the number of persons over the age of 18 in the newspaper’s DMA. The Milwaukee Journal Sentinel’s DMA, which ranks among the top 50 in the United States, consists of the 10-county area surrounding Milwaukee, Wisconsin. 

In 2011, our daily newspaper won its third Pulitzer Prize in the last four years for explanatory reporting. Only the New York Times and the Washington Post have won journalism’s highest honor more times in the last four years than the Milwaukee Journal Sentinel.   In 2008 and 2010, the Milwaukee Journal Sentinel received Pulitzers in the Local Reporting category. 

In 2012, our newsroom staff received many other national awards for both print and digital coverage in our investigative work.  “Empty Cradles,” a series which detailed Milwaukee’s high infant mortality rate, won awards as “Innovator of the Year” from the Associated Press Managing Editors (APME), as well as the Casey Medal for reporting on children.  “Imminent Danger,” which profiled the public risk of mental health confinement laws, won the Robert F. Kennedy Journalism award. And “Both Sides of the Law,” won an APME award for digital innovation in watchdog journalism. “Side Effects,” a series on how surgeons were paid millions by device manufacturers to conduct flawed research on the safety of those devices, won the Gerald Loeb business writing award.   Separately, our staff was also recognized for the excellence of their print and website work by the American Bar Association, the John Jay award for criminal justice reporting, the Online News Association, and the National Headliner Awards. The Journal Sentinel’s sports coverage has routinely been recognized for excellence, and in 2012 our Sports reporting was named one of the nation’s top ten newspapers for online coverage by the Associated Press Sports Editors.

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In addition to our traditional print media, we operate a number of websites that provide editorial and advertising content, including JSOnline.com, Milwaukeemoms.com and the MyCommunityNOW family of 26 community websites.  Our daily newspaper operates a co-branded online automotive offering under a franchise agreement with CarSoup of Minnesota, Inc. (CarSoup.com).  In 2012, online revenue of $12.3 million for websites affiliated with our daily newspaper increased 9.3% compared to $11.3 million in 2011, primarily due to an increase in retail sponsorships sold.

The Milwaukee Journal Sentinel is distributed primarily by independent contract carriers throughout southeastern Wisconsin.  Agents deliver the Milwaukee Journal Sentinel to single copy outlets throughout the rest of Wisconsin.

The following table sets forth our average net paid circulation as filed with the Alliance for Audited Media (AAM):

	Six-Months Ended September 30						12-Months Ended March 31
	2012		2011		2010		2012		2011		2010
Daily (Five-day average)		207,066		188,818		183,636		187,287		188,992		188,644
Sunday		337,829		326,262		331,171		327,311		332,586		331,184

Circulation revenue accounted for 32.2% of our daily newspaper’s total revenue in 2012.  The Milwaukee Journal Sentinel single copy prices are $1.00 for daily, and $2.25 for Sunday, following a price increase in April 2012, in our five county primary market area.  The six-month average paid circulation increased in September 2012 compared to September 2011 due to AAM rule changes for electronic subscriptions.  We believe our average net paid print circulation will decrease due to, among other factors, increased competition for readers from new media products, other free sources and time pressures on consumers.  Advertising revenue accounted for 51.5% of our daily newspaper’s total revenue in 2012.  Our daily newspaper experienced decreases in revenue in most print advertising categories in 2012 compared to 2011 due to the secular influences affecting the newspaper industry and the continued economic uncertainty.  Digital advertising revenue showed growth in 2012 over 2011.

The Milwaukee Journal Sentinel introduced a digital subscription program, or “paywall,” on our jsonline.com website in January 2012.  Integrated into the launch of the paywall was a price increase to our home delivery subscribers, who gain full access to all digital products with their subscription fee.

Other revenue, which consists of revenue from promotional events, commercial distribution and commercial printing revenue, accounted for 12.8% of our daily newspaper’s total revenue in 2012.  Our state-of-the-art printing facility, which now includes the ability to print ultra-violet coated pages, similar to magazines, allows us to leverage our existing assets to sign long term agreements to print other daily newspapers, such as USA Today, Wall Street Journal, Kenosha News, Pioneer Press suburban editions, Chicago Reader and others.  We believe we provide high quality, competitive pricing and close proximity to their readers in southeastern Wisconsin and Chicago and its suburbs.

Community Newspapers and Shoppers

We own and operate community publications and a printing plant in Wisconsin through our subsidiary, Journal Community Publishing Group, Inc. In 2011, we sold our community publications in Florida. In December 2012, we sold the majority of our community publications in northern Wisconsin.

Lake Country Publications' newspapers and magazines were nationally recognized as the best in class by the Local Media Association (formerly Suburban Newspapers of America) in several categories, including best photojournalism, best in-depth reporting, best sports writing, best niche publication and best news photo.  In addition, the Lake County Reporter was recognized as the “Best Weekly Newspaper” in its division for 2012 by the Wisconsin Newspaper Association.

Our community publications have a combined paid and free average weekly distribution of approximately 200,000. Our community publications focus on local news and events that are of interest to the local residents. In some markets, our community publications are the only source of local news.

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We also publish a niche publication that appeals to advertisers and readers in the agricultural market with a combined paid and free average monthly distribution of approximately 3,000.

Advertising revenue and circulation revenue accounted for 75.8% and 8.4%, respectively, of our community newspapers’ and shoppers’ total revenue in 2012.  In addition to our publishing operations, we also provide commercial printing services, including cold-web printing, sheet-fed printing, electronic prepress, mailing services, bindery and inserting, mostly for other weekly and monthly publications.  Other revenue, the majority of which comes from commercial printing, accounted for 15.8% of our community newspapers’ and shoppers’ total revenue in 2012.  Our community newspapers, shoppers and niche publications groups are as follows:

					Number of
	2012		2011										Niche
	Average		Average		Newspapers				Shoppers				Publication
	Distribution		Distribution		2012		2011		2012		2011		2012		2011
Northern Wisconsin		23,000		214,000		1		5		-		7		1		2
Southeastern Wisconsin		177,000		177,000		16		14		1		4		-		-

Newsprint

The basic raw material of newspapers is newsprint.  In 2012, we purchased the majority of our newsprint requirements through a purchasing agent, which has the option to purchase newsprint from multiple suppliers.  We may purchase additional newsprint in the spot market from other suppliers.

We believe we will continue to receive an adequate supply of newsprint for our needs.  Newsprint prices fluctuate based upon market factors, which include newsprint production capacity, currency exchange rates, manufacturer’s cost drivers, inventory levels, demand and consumption.  Price fluctuations for newsprint can have a significant effect on our results of operations.  The average net price per ton was $629 in 2012 compared to an average net price per ton of $626 in 2011, net of scrap sales.  Our consumption of newsprint decreased to 24,880 metric tons in 2012 (53 weeks) from 24,924 metric tons in 2011 (52 weeks), and our total cost of newsprint increased $0.1 million in 2012 compared to 2011.  The decrease in consumption in 2012 at our publishing businesses was primarily due to decreases in average net paid circulation, run-of-press (ROP) advertising, waste and a decrease in content pages. Based on the consumption of newsprint in 2012 by our daily newspaper and by our community newspapers and shoppers, a $10 per ton increase or decrease in the price of newsprint would increase or decrease our total cost of newsprint by $0.3 million.

Industry and Competition

Newspaper publishing is the oldest segment of the consumer media industry.  Metropolitan and community newspapers often represent the primary medium for news and local advertising due to their historic importance to the communities they serve.

Over the past few years, fundamentals in the newspaper industry have continued to deteriorate.  Retail and classified ROP advertising have decreased from historic levels due in part to department store consolidation, weakened employment, automotive and real estate economics and a migration of advertising to the Internet and other advertising forms.  Circulation declines and online competition have also negatively impacted newspaper industry revenues.  Additionally, the housing market downturn, while now showing signs of recovery, has adversely impacted the newspaper industry, including real estate classified advertising as well as the home improvement, furniture and financial services advertising categories.  However, we believe the rate of deterioration of these fundamentals has moderated based on our 2012 results.

Advertising revenue is the largest component of a newspaper’s total revenue and it is affected by cyclical changes in national and regional economic conditions.  Classified advertising is generally the most sensitive to economic cycles and secular changes in the newspaper business because it is driven primarily by the demand for employment, real estate transactions and automotive sales.  Newspaper advertising revenue is seasonal and our publishing business tends to see increased revenue due to increased advertising activity during certain holidays.

We believe newspapers and their online and niche products continue to be one of the most effective mediums for retail and classified advertising because they allow advertisers to promote the price and selection of goods and to maximize household reach within a local retail trading area.  This is especially true in a market like Milwaukee, which is still home to a number of local-market decision makers who influence spending to reach shoppers in this community.  Notwithstanding the advertising advantages newspapers offer, newspapers have many competitors for advertising dollars and paid circulation.  These competitors include local, regional and national newspapers, shoppers, magazines, broadcast and cable television, radio, direct mail, Yellow Pages, the Internet and other media.  Competition for newspaper advertising revenue is based largely upon advertiser results, advertising rates, readership, demographics and circulation levels, while competition for circulation revenue is based largely upon the content of the newspaper, its price, editorial quality and customer service.  On occasion, our businesses compete with each other for regional and local advertising, particularly in the Milwaukee market.

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Compliance with Environmental Laws

As the owner, lessee or operator of various real properties and facilities, we are subject to various federal, state and local environmental laws and regulations.  Historically, compliance with these laws and regulations has not had a material adverse effect on our business.  Compliance with existing or new environmental laws and regulations may require us to make future expenditures.

Regulation

Our television and radio businesses are subject to regulation by governmental authorities in the United States.

     Introduction

Our television and radio broadcasting operations are subject to regulation by the FCC under the Communications Act of 1934, as amended (which we refer to as the Communications Act).  Under authority of the Communications Act, the FCC, among other things, assigns frequency bands for broadcast and other uses; determines the location, frequency and operating power of stations; grants permits and licenses to construct and operate television and radio stations on particular frequencies; issues, revokes, modifies and renews radio and television broadcast station licenses; regulates equipment used by stations; determines whether to approve changes in ownership or control of station licenses; regulates the content of some forms of programming; adopts and implements regulations and policies which directly or indirectly affect the ownership, operations and profitability of broadcasting stations; and has the power to impose penalties for violations of its rules.

Licensed broadcast stations must pay FCC regulatory and application fees and comply with various rules promulgated under the Communications Act that regulate, among other things, political advertising, sponsorship identification, closed captioning of certain television programming, obscene, indecent and profane broadcasts, and technical operations, including limits on radio frequency radiation.  Additionally, the FCC’s rules require licensees to implement equal employment opportunity outreach programs and maintain records and make filings with the FCC evidencing such efforts.

The following is a brief summary of certain provisions of the Communications Act and specific FCC rules and policies.  The summaries are not intended to describe all present and proposed statutes and FCC rules and regulations that impact our television and radio operations.  Failure to observe the provisions of the Communications Act and the FCC’s rules and policies can result in the imposition of various sanctions, including monetary forfeitures, the grant of “short-term” (less than the maximum term) license renewal or, for particularly egregious violations, the denial of a license renewal application, the revocation of a license or the withholding of approval for acquisition of additional broadcast properties.

Broadcast Licenses/Renewals

The Communications Act permits the operation of a broadcast station only in accordance with a license issued by the FCC upon a finding that the grant of a license would serve the public interest, convenience and necessity.  The FCC grants broadcast licenses for specified periods of time and, upon application, may renew the licenses for additional terms (ordinarily for the full term of eight years).  Generally, the FCC renews a broadcast license upon a finding that (i) the broadcast station has served the public interest, convenience and necessity; (ii) there have been no serious violations by the licensee of the Communications Act or the FCC’s rules; and (iii) there have been no other violations by the licensee of the Communications Act or other FCC rules which, taken together, indicate a pattern of abuse.  After considering these factors, the FCC may renew a broadcast station’s license, either with conditions or without, or it may designate the renewal application for hearing.  Although there can be no assurance that our licenses will be renewed, we have not to date had a violation of the FCC’s regulations that jeopardized the renewal of our licenses, and we are not currently aware of any facts that would prevent their renewal.

On November 1, 2005, the Milwaukee Public Interest Media Coalition (“MPIMC”) filed a petition at the FCC asking it to deny the pending license renewal applications of all eleven commercial television stations in the Milwaukee Designated Market Area (DMA), including our station, WTMJ-TV, on the grounds that the stations failed to provide adequate coverage of state and local issues during the 2004 election campaign.  In June 2007, the FCC issued an Order denying MPIMC’s Petition.  In July 2007, MPIMC filed a Petition for Reconsideration with the FCC requesting it to reconsider the denial of MPIMC’s Petition to Deny.  We opposed MPIMC’s Petition for Reconsideration and in July 2008, the FCC issued a decision denying the Petition for Reconsideration.  In August 2008, MPIMC filed a second Petition for Reconsideration of the FCC’s June 2007 Order.  We filed an Opposition to MPIMC’s Second Petition in August 2008.  The FCC dismissed MPIMC’s Second Petition on January 12, 2009.  On February 16, 2010, MPIMC filed an Application for Review requesting the FCC to review the dismissal of MPIMC’s Second Petition.  We filed an Opposition to MPIMC’s Application for Review jointly with several other television stations in the Milwaukee DMA, and MPIMC filed a Reply.  By letter dated December 10, 2010, the FCC dismissed MPIMC’s Application for Review.  On January 10, 2011, MPIMC filed another Application for Review requesting the FCC to vacate its December 10, 2010 order and consider MPIMC’s February 10, 2010 Application for Review on its merits.  On January 25, 2011, we filed an Opposition to the second Application for Review jointly with several other Milwaukee television station licensees.  MPIMC filed a consolidated Reply to the Joint Opposition on February 2, 2011.  The matter remains pending.

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On October 29, 2012, Media Action Center filed a Petition to Deny the renewal application of Station WTMJ(AM), Milwaukee, WI, alleging that the Station violated FCC rules because it did not provide sufficient time to supporters of certain candidates for state office.  On November 28, 2012, Journal filed an Opposition to the Petition.  Media Action Center filed a response to Journal’s Opposition on December 18, 2012.  The matter remains pending.

Ownership Restrictions

The Communications Act and FCC rules and policies include a number of limitations regarding the number and reach of broadcast stations that any person or entity may own, directly or by attribution.  FCC approval is also required for transfers of control and assignments of station licenses.  A person or entity requesting FCC approval to acquire a radio or television station license must demonstrate that the acquisition complies with the FCC’s ownership rules or that a waiver of the rules is in the public interest.

The FCC is required to review quadrennially the following media ownership rules and to modify, repeal or retain any rules as it determines to be in the public interest: the newspaper broadcast cross-ownership rule; the local radio ownership rule; the radio-television cross-ownership rule; the dual network rule; and the local television ownership rule.  In 2003, the FCC completed a comprehensive review of its ownership rules and adopted revised rules.  The FCC’s new rules were to have become effective on September 4, 2003.  However, a number of parties sought reconsideration of the new rules and others filed judicial appeals.  The U.S. Court of Appeals for the Third Circuit issued a stay of the new rules on September 3, 2003.  Then, in an opinion issued on June 24, 2004, the court remanded most of the revised rules to the FCC for additional analysis and justification.  In 2008, the FCC released a Report and Order that modified only the newspaper broadcast cross-ownership rule to permit cross-ownership of one newspaper and one television or radio station in the top twenty markets under certain circumstances, and establishing a waiver procedure for such combinations in markets smaller than the top twenty.  The FCC also reinstated the radio television cross-ownership rule, which had been repealed in 2003, reinstated the local television ownership rule as it had been in effect prior to 2003, and affirmed the local radio ownership rule as adopted in 2003.  The FCC stated that newspaper broadcast combinations that were grandfathered in 1975 when the newspaper-broadcast cross-ownership rule was adopted, including our Milwaukee operations, will continue to be grandfathered.  In a decision issued on July 7, 2011, the Court of Appeals for the Third Circuit vacated and remanded the modified newspaper broadcast cross-ownership rule.  In December 2011, the FCC issued a Notice of Proposed Rulemaking (“Ownership NPRM”) with respect to its 2010 quadrennial review of the media ownership rules.  The Ownership NPRM proposes to modify the newspaper broadcast cross-ownership rule to apply a positive presumption to requests to own a daily newspaper and a broadcast station in the 20 largest DMAs if certain conditions are met and to repeal the radio television cross-ownership rule.  In December 2012, the FCC offered interested parties the opportunity to file additional comments in the 2010 quadrennial review to address a report on ownership of commercial broadcast stations that the FCC released in November 2012.  The FCC’s ownership rules that are currently in effect are briefly summarized below.

Newspaper-Broadcast Cross-Ownership Rule.  Under the currently effective newspaper-broadcast cross-ownership Rule, unless grandfathered or subject to waiver, no party can have an attributable interest in both a daily English-language newspaper and either a television station or a radio station in the same market if specified signal contours of the television station or the radio station encompass the entire community in which the newspaper is published.  Our media operations in Milwaukee are grandfathered under this rule.

Local Radio Ownership Rule.   The local radio ownership rule limits the number of radio stations an entity may own in a given market depending on the size of the radio market.  Specifically, in a radio market with 45 or more commercial and noncommercial radio stations, a party may own, operate, or control up to eight commercial radio stations, not more than five of which are in the same service (AM or FM).  In a radio market with between 30 and 44 radio stations, a party may own, operate, or control up to seven commercial radio stations, not more than four of which are in the same service.  In a radio market with between 15 and 29 radio stations, a party may own, operate, or control up to six commercial radio stations, not more than four of which are in the same service.  In a radio market with 14 or fewer radio stations, a party may own, operate, or control up to five commercial radio stations, not more than three of which are in the same service, except that a party may not own, operate, or control more than 50% of the stations in the market, except for combinations of one AM and one FM station, which are permitted in any size market.  For stations located in a market in which the Arbitron ratings service provides ratings, the definition of “radio market” is based on the radio market to which BIA Kelsey reports assign the affected radio stations.  For stations that are not in an Arbitron market, the market definition is based on technical service areas, pending further FCC rulemaking.  Also under the rule, a radio station that provides more than 15% of another in-market station’s weekly programming or sells more than 15% of another in-market station’s weekly advertising will be deemed to have an attributable interest in the brokered station.

Radio-Television Cross-Ownership Rule.  The radio-television cross-ownership rule generally allows common ownership of one or two television stations and up to six radio stations, or, in certain circumstances, one television station and seven radio stations, in any market where at least 20 independent voices would remain after the combination; two television stations and up to four radio stations in a market where at least 10 independent voices would remain after the combination; and one television and one radio station notwithstanding the number of independent voices in the market.  A “voice” generally includes independently owned, same-market commercial and noncommercial broadcast television and radio stations, newspapers of certain minimum circulation, and one cable system per market.

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Local Television Ownership Rule.  Under the local television ownership rule, one party may own, operate, or control up to two television stations in a market, so long as the market would have at least eight independently owned full power television stations after the combination and at least one of the stations is not one of the top-four-rated stations (based on audience share) in the television market.  The rule also permits the ownership, operation or control of two television stations in a market as long as the stations’ Noise Limited Service contours do not overlap.  In 2011, the FCC sought comments on its proposal to eliminate the contour overlap exception that permits common ownership of two television stations in the same market.  The matter remains pending.  The FCC may waive this rule to permit ownership, operation or control of two television stations in a market that will not otherwise be permissible if one of the stations is in involuntary bankruptcy, is a “failed” station, or is “failing” (i.e., stations with negative cash flow and less than a four share all day audience rating).  Under the rule, the licensee of a television station that provides more than 15% of another in-market station’s weekly programming will be deemed to have an attributable interest in the other station.

Dual Network Rule.  The dual network rule prohibits any of the four major networks — ABC, CBS, Fox and NBC — from merging with each other.

Television National Audience Reach Limitation. A person or entity is prohibited from having an attributable interest in television stations whose aggregate audience reach exceeds 39% of the television households in the United States.  In calculating the number of households a station reaches, the FCC attributes a UHF station with only 50% of the television households in the market.  The FCC is precluded by statute from modifying this rule in connection with its mandated quadrennial review of the ownership rules.

Attribution of Ownership.  An “attributable” interest for purposes of the FCC’s broadcast ownership rules generally includes: (i) equity and debt interests which combined exceed 33% of a licensee’s total assets, if the interest holder supplies more that 15% of the licensee’s total weekly programming, or has an attributable same-market media interest, whether television, radio, cable or newspaper; (ii) a 5% or greater direct or indirect voting stock interest, including certain interests held in trust, unless the holder is a qualified passive investor in which case the threshold is a 20% or greater voting stock interest; (iii) any equity interest in a limited liability company or a partnership, including a limited partnership, unless properly “insulated” from management activities; and (iv) any position as an officer or director of a licensee or of its direct or indirect parent.

Alien Ownership

The Communications Act restricts the ability of foreign entities or individuals to own or hold interests in U.S. broadcast licenses.  Foreign governments, representatives of foreign governments, non-U.S. citizens, representatives of non-U.S. citizens, and corporations or partnerships organized under the laws of a foreign country (collectively, “aliens”) are prohibited from holding broadcast licenses.  Aliens may directly or indirectly own or vote, in the aggregate, up to 20% of the capital stock of a licensee.  In addition, a broadcast license may not be granted to or held by any corporation that is controlled, directly or indirectly, by any other corporation more than 25% of whose capital stock is owned or voted by aliens if the FCC finds that the public interest will be served by the refusal or revocation of such license.  The FCC has interpreted this provision to require an affirmative finding that foreign ownership in excess of 25% would serve the public interest and, in the broadcast context, has made such a finding only in highly limited circumstances.

Obscenity, Indecency and Profanity

The FCC's rules prohibit the broadcast of obscene material at any time and indecent or profane material between the hours of 6:00 a.m. and 10:00 p.m.  In recent years, the FCC has intensified its enforcement activities with respect to programming it considers indecent and has issued numerous fines to licensees found to have violated the indecency rules.

In July 2007, the FCC implemented increased forfeiture amounts for indecency violations that were enacted by Congress. The maximum permitted fine for an indecency violation is $325,000 per incident and $3,000,000 for any continuing violation arising from a single act or failure to act.

Because the FCC may investigate indecency complaints on an ex parte basis, a licensee may not have knowledge of an indecency complaint unless and until the complaint results in the issuance of a formal FCC letter of inquiry or notice of apparent liability for forfeiture.  From time to time, our television and radio stations receive letters of inquiry and notices of proposed forfeitures from the FCC alleging that they have broadcast indecent material.  We do not believe that broadcasts identified in any currently pending complaints of which we are aware violate the indecency standards.  In July 2010, the U.S. Court of Appeals for the Second Circuit issued a decision finding that the FCC’s indecency standard was too vague for broadcasters to interpret and therefore inconsistent with the First Amendment.  In June 2011, the Supreme Court granted certiorari in this case.  In June 2012, the Supreme Court issued a decision which held that the FCC could not fine ABC and FOX for the specific broadcasts at issue in the case because the FCC had not provided them with sufficient notice of its intent to issue fines for the use of fleeting expletives.  The Court also held that the FCC’s indecency standards did not violate the First Amendment.  The result of this decision on the FCC’s indecency enforcement practices remains unclear, and the FCC has not issued any decisions regarding indecency enforcement since the Supreme Court’s decision was issued.

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Sponsorship Identification

Both the Communications Act and the FCC’s rules generally require that, when payment or other consideration has been received or promised to a broadcast licensee for the airing of program material, the station must disclose that fact and identify who paid or promised to provide the consideration at the time of broadcast.  In response to a complaint by a public interest organization, the FCC issued letters of inquiry to several dozen television stations seeking to determine whether their broadcast of “video news releases” (VNRs) violated the sponsorship identification rules by failing to disclose the source and sponsorship of the VNR materials.  VNRs are news stories and feature materials produced by government agencies and commercial entities, among others, for use by broadcasters.  Two of our television stations received and have responded to the VNR letter of inquiry.  We cannot predict the outcome of the FCC’s investigation; however in 2007, the FCC issued a forfeiture notice to one cable company for alleged violations of the sponsorship identification rules based on the use of VNRs.

Digital Television

As of June 12, 2009, all full-power broadcast television stations were required to cease broadcasting analog programming and convert to all digital broadcasts.  Digital broadcasting permits stations to offer digital channels for a wide variety of services such as high definition video programming, multiple channels of standard definition video programming, audio, data, and other types of communications.  Each station is required to provide at least one free over-the-air video program signal.

To the extent a station has “excess” digital capacity (i.e., digital capacity not used to transmit free, over-the-air video programming), it may elect to use that capacity in any manner consistent with FCC technical requirements, including for additional free program streams, data transmission, digital or subscription video services, or paging and information services.  If a station uses its digital capacity to provide any services on a subscription or otherwise “feeable” basis, it must pay the FCC an annual fee equal to 5% of the gross revenues realized from such services.

Relationship with MVPDs

A number of provisions of the Communications Act and FCC rules govern aspects of the relationship between broadcast television stations and distributors of multiple channels of video programming such as cable, satellite and telecommunications companies (referred to as MVPDs).  The rules generally provide certain protections for broadcast stations, for which MPVDs are an important means of distribution and a provider of competing program channels.

To ensure that every local television station can be received in its local market without requiring a cable subscriber to switch between cable and off-air signals, the FCC allows every full-power television broadcast station to require that all local cable systems transmit that station’s primary digital channel to their subscribers within the station’s market (the so-called “must-carry” rule).  Alternatively, a station may elect to forego its must-carry rights and seek a negotiated agreement to establish the terms of its carriage by a local cable system—referred to as “retransmission consent.”  A station electing retransmission consent assumes the risk that it will not be able to strike a deal with the MPVD and will not be carried.  A station has the opportunity to elect must-carry or retransmission consent every three years.  Elections were made in October 2011 for the 2012-2014 three year period.  We have elected retransmission consent rather than must carry with MPVDs for most of our television stations.  A station that fails to notify a cable system of its election is presumed to have elected must-carry.

Cable systems are not required to carry any programming streams other than a station’s primary video programming channel. Consequently, the multicast programming streams provided by several of our television stations are not entitled to mandatory carriage pursuant to the digital must-carry rules.  However, because the FCC’s action does not affect digital retransmission consent agreements, we are free to negotiate with cable operators for the carriage of additional programming streams under mutually agreed terms and conditions.  A similar must-carry and retransmission consent regime governs carriage of local broadcast channels by direct-to-home satellite television operators.  A satellite provider is not required to transmit the signal of any television station to its subscribers in that station’s market.  However, if a satellite provider chooses to provide one local station to its subscribers in a market, the provider also must transmit locally every other station in that market that elects must-carry status.  As with cable, stations may opt to pursue retransmission consent agreements.  A local television station that fails to make any election to a satellite provider is deemed to have elected retransmission consent and is not guaranteed carriage.  Satellite must-carry election periods occur every three years, consistent with cable must-carry periods.  We have elected retransmission consent with satellite television operators for most of our stations.

In February 2011, the FCC issued a Notice of Proposed Rulemaking (“NPRM”) reviewing the retransmission consent rules.  The NPRM requests comment on proposals to strengthen the good faith negotiation requirements and to require advance notice of the potential that a television station could be dropped from an MVPD’s programming lineup.  In a separate proceeding, the FCC has requested comment on whether the definition of MVPD should be expanded to include entities that make available multiple channels of video programming to subscribers through Internet connections.  Both proceedings are pending, and we cannot predict what impact, if any, they will have on our negotiations with video programming distributors.

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Children’s Television Programming

Federal legislation and FCC rules limit the amount and content of commercial matter that may be shown on television stations during programming designed for children 12 years and younger, and require stations to broadcast three hours per week of educational and informational programming (“E/I programming”) designed for children 16 years of age and younger.  FCC rules also require television stations to broadcast E/I programming on each additional digital multicast program stream transmitted, with the requirement increasing in proportion to the additional hours of free programming offered on multicast channels.  These rules also limit the display during children’s programming of Internet addresses of websites that contain or link to commercial material or that use program characters to sell products.

Digital Radio

The FCC permits existing AM and FM radio broadcast stations to broadcast digitally in order both to improve sound quality and to provide spectrum for multicast channels and/or enhanced data services to complement the existing programming service.  The FCC has authorized AM and FM radio stations to broadcast digital signals using excess spectrum within the same allotted bandwidth used for analog transmissions.  In January 2010, the FCC adopted procedures that allow FM radio stations to significantly increase their digital power levels above those originally permitted in order to improve the digital service these stations provide.

Closed Captioning

FCC rules require the majority of programming broadcast by television stations to contain closed captions.  The FCC forwards to television stations viewer complaints it receives with respect to closed captioning problems, and several of our stations have received complaints that were filed with the FCC.  We have responded to these complaints, and they are currently pending.  In January 2012, the FCC adopted rules to require that television programming broadcast or transmitted with captioning include captioning of programming subsequently made available online, for example, by streaming content on broadcasters’ websites.  These rules are being phased in over a 12 month period that began in September 2012.

The FCC adopted rules in August 2011 reinstating the video description rules the Commission had previously adopted in 2000, which had been vacated by the United States Court of Appeals for the District of Columbia in 2002.  Those rules require, in part, that affiliates of the top-four national broadcast networks in the top 25 markets provide a minimum of 50 hours of video-described primetime and/or children’s programming each calendar quarter.  The requirement to provide video descriptions will ultimately be expanded to network affiliates in the top 60 markets.

Commercial Advertisement Loudness Mitigation

New rules enacted by the FCC that require our television broadcast stations to transmit commercials and adjacent programming at the same volume went into effect in December 2012.

Employees

As of December 30, 2012, we and our subsidiaries had approximately 1,800 full-time and 700 part-time employees compared to approximately 1,700 full-time and 800 part-time employees at December 25, 2011.  Currently, there are 11 bargaining units representing approximately 600 (or approximately 22%) of our total number of employees.  We have entered into various collective bargaining agreements with these bargaining units.  Six of these agreements will expire within the next two years.

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ITEM 1A. RISK FACTORS

You should carefully consider the following risk factors and warnings before making an investment decision.  If any of the risks below actually occur, our business, financial condition, results of operations or prospects could be materially adversely affected.  In that case, the price of our securities could decline and you could lose all or part of your investment.  You should also refer to the other information set forth or incorporated by reference in this document.

Risks Relating to Our Diversified Media Business

Decreases in advertising spending, resulting from economic downturn, war, terrorism, advertiser consolidation or other factors, could adversely affect our financial condition and results of operations.

Approximately 69% of our revenue in 2012 was generated from the sale of local, regional and national advertising for broadcast on our radio and television stations and appearing in our newspapers and shoppers.  Advertisers generally reduce their advertising spending during economic downturns and some advertisers may go out of business or declare bankruptcy.  The merger or consolidation of advertisers, such as in the banking and airline industries, also generally leads to a reduced amount of collective advertising spending.  A recession or economic downturn, as well as a consolidation of advertisers, has had, and in the future could continue to have, an adverse effect on our financial condition and results of operations. In addition, our advertising revenue tends to decline in times of national or local crisis because our radio and television stations broadcast more news coverage and sell less advertising time.  Terrorist attacks or other wars involving the United States or any other local or national crisis could adversely affect our financial condition and results of operations.

Additionally, some of our printed publications and our radio and television stations generate a large percentage of their advertising revenue from a limited number of sources, including the automotive industry, political advertising and professional sports contracts.  As a result, even in the absence of a recession or economic downturn, adverse changes specifically affecting these advertising sources could significantly reduce advertising revenue and have a material adverse affect on our financial condition and results of operations.

In addition, our advertising revenue and circulation revenue depend upon a variety of other factors specific to the communities that we serve.  Changes in those factors could negatively affect those revenues.  These factors include, among others, the size and demographic characteristics of the local population, the concentration of retail stores and local economic conditions in general.  If the population demographics, prevailing retail environment or local economic conditions of a community served by us were to change adversely, revenue could decline and our financial condition and results of operations could be adversely affected.  This risk is especially evident with respect to the metropolitan Milwaukee market, which is served by our daily newspaper, the Milwaukee Journal Sentinel, one of our television stations, two of our radio stations, a number of our community newspapers and shoppers and several websites, and, collectively, from which we derived approximately 52% of our revenue in 2012.

Our diversified media businesses operate in highly competitive markets, and during a time of rapid competitive changes, we may lose market share and advertising revenue to competing radio and television stations, newspapers or other types of media competitors, as well as through consolidation of media competitors or changes in advertisers’ media buying strategies.

Our diversified media businesses operate in highly competitive markets.  Our radio stations, television stations, newspapers, shoppers and Internet sites compete for audiences and advertising revenue with other radio stations, television stations, newspapers, shoppers and Internet sites as well as with other media such as cable television, satellite television, satellite radio, magazines, outdoor advertising, direct mail and the evolving digital advertising space. Some of our current and potential competitors have greater financial, marketing, programming and broadcasting resources than we do or, even if smaller in size or in terms of financial resources, the ability to create digital niche products and communities and may respond faster or more aggressively to changing competitive dynamics.  This competition has intensified as a result of digital media technologies.  While the amount of advertising on our digital products has continued to increase, we have experienced, and in the future may continue to experience, a decrease in advertising revenues if we are unable to attract advertising to our digital products in volumes and at prices sufficient to offset decreases in advertising in our traditional media products, for which rates are generally higher than for digital advertising.

Our radio and television broadcasting businesses compete for audiences and advertising revenue primarily on the basis of programming content and advertising rates.  Our ability to maintain market share and competitive advertising rates depends in part on audience acceptance of our network, syndicated and local programming.  Changes in market demographics, the entry of competitive stations to our markets, the introduction of competitive local news or other programming by cable, satellite or other news providers, or the adoption of competitive formats by existing radio stations could result in lower ratings and have a material adverse effect on our financial condition and results of operations.  Changes in ratings technology, or methodology or metrics used by advertisers or other changes in advertisers’ media buying strategies also could have a material adverse effect on our financial condition and results of operations.  The ability of our broadcast digital products to attract significant future advertising revenue is unproven and we may incur increasing costs competing for digital advertising revenue.

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Further, our operations may be adversely affected by consolidation in the broadcast industry, especially if competing stations in our markets are acquired by competitors who have a greater national scope, can offer a greater variety of national and syndicated programming for listeners and viewers or offer enhanced opportunities for advertisers to reach broader markets.  In 2008, the FCC issued a Report and Order that modified the newspaper broadcast cross-ownership rule to permit cross-ownership of one newspaper and one television or radio station in the top twenty markets under certain circumstances.  In July 2011, the Court of Appeals for the Third Circuit vacated and remanded the modified newspaper broadcast cross-ownership rule.  In December 2011, the FCC issued a Notice of Proposed Rulemaking with respect to its 2010 quadrennial review of the media ownership rules.  The NPRM proposes to modify the newspaper broadcast cross-ownership rule in a similar manner to the modifications adopted in 2008 and to eliminate the television radio cross-ownership rule.  We cannot predict the outcome of any further administrative or judicial proceedings related to the media ownership rules.

In newspapers and shoppers, our revenue primarily consists of advertising and paid circulation.  Competition for advertising expenditures and paid circulation comes from local, regional and national newspapers, shoppers, magazines, broadcast and cable television, radio, direct mail, Yellow Pages, the digital products and other media.  Competition for newspaper advertising revenue is based largely upon advertiser results, advertising rates, readership, demographics and circulation levels, while competition for circulation revenue is based largely upon the content of the newspaper, its price, editorial quality and customer service.  On occasion, our businesses compete with each other for regional and local advertising, particularly in the Milwaukee market.  Our local and regional competitors in community newspapers and shoppers are typically unique to each market, but we have many competitors for advertising revenue that are larger and have greater financial and distribution resources than us.  Circulation revenue and our ability to achieve price increases for our print products are affected by competition from other publications and other forms of media available in our various markets, declining consumer spending on discretionary items like newspapers, decreasing amounts of free time, and declining frequency of regular newspaper buying among young people.  We may incur increasing costs competing for advertising expenditures and paid print and digital subscriptions.  If we are not able to compete effectively for advertising expenditures and paid print and digital subscriptions, our revenue may decline and our financial condition and results of operations may be adversely affected.

Seasonal and cyclical changes in advertising volume affect our quarterly revenue and results of operations and may cause our stock price to be volatile.

Our quarterly revenue and results of operations are subject to seasonal and cyclical fluctuations that we expect to continue to affect our results of operations in future periods.  Our first quarter of the year tends to be our weakest quarter because advertising volume is typically at its lowest levels following the holiday season.  Our fourth quarter tends to be our strongest quarter primarily because of revenue from holiday season advertising.  Our quarterly revenue also varies based on the dynamics of the television broadcast industry.  In particular, we experience fluctuations, primarily during our third and fourth quarters, during political voting periods as advertising significantly increases.  Also, since NBC has exclusive rights to broadcast the Olympics through 2020, our NBC affiliated stations experience increased viewership and revenue during Olympic broadcasts in the first or third quarters of the years in which the Olympics are held.  Other factors that affect our quarterly revenue and results of operations may be beyond our control, including changes in the pricing policies of our competitors, the hiring and retention of key personnel, wage and cost pressures, changes in newsprint prices, changes in the buying strategies of advertisers and general economic factors.  These quarterly fluctuations in revenue and results of operations may cause our stock price to be volatile.

We may not be able to acquire television stations, radio stations, newspapers or assets related to our digital growth strategy, successfully manage acquired properties or increase our profits from these operations.

Our diversified media business has in the past expanded through acquisitions of television and radio stations in selected markets.  We intend to pursue continued growth through selected acquisitions, including acquisitions and investments related to our digital growth strategy, if we are able to identify strategic acquisition candidates, negotiate definitive agreements on acceptable terms and, as necessary, secure additional financing.

Our acquisition strategy includes certain risks. For example:

· we may not be able to identify suitable acquisition candidates or, if identified, negotiate successfully their acquisition;

· we may not be able to secure additional financing necessary to complete acquisitions;

· we may encounter unforeseen expenses, difficulties, complications or delays in connection with the integration of acquired entities and the expansion of operations;

· we may fail to achieve anticipated financial benefits from acquisitions;

· we may encounter regulatory changes or delays or other impediments in connection with proposed transactions;

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· our acquisition strategy may divert management’s attention from the day-to-day operation of our businesses;

· key personnel at acquired companies may leave employment; and

· we may be required to focus resources on integration of operations rather than more profitable areas.

In addition, we compete for certain acquisition targets with companies having greater financial resources.  We cannot assure you that we will be able to successfully make future acquisitions or what effects those acquisitions may have on our financial condition and results of operations.

We have in the past and may in the future cluster multiple radio and television stations in markets that we believe have demographic characteristics and growth potential suitable to further our business objectives.  Multiple stations in the same geographic market area could make our results of operations more vulnerable to adverse local economic or demographic changes than they would otherwise be if our stations were located in geographically diverse areas.

We anticipate that we would finance potential acquisitions through cash provided by operating activities and/or borrowings, which would reduce our cash available for other purposes.  We cannot assure you, however, that we would be able to obtain needed financing in the event strategic acquisition opportunities are identified.  Another potential source of financing for future acquisitions is to incur more debt, which would lead to increased leverage and debt service requirements.  We may also consider financing acquisitions by issuing additional shares of class A common stock, which would dilute current shareholders’ ownership.  Inherent in any future acquisitions is the risk of transitioning company cultures and facilities, which could have a material adverse effect on our financial condition and results of operations, particularly during the period immediately following any acquisitions.

If we are unable to respond to changes in technology and evolving industry standards and trends, our radio stations may not be able to effectively compete.

The broadcast media industry is subject to evolving media technologies and evolving industry standards.  Several new technologies are being developed and/or utilized that may compete with our radio stations, including:

· audio programming by cable television systems, direct broadcast satellite systems, personal communications and wireless systems, Internet content providers and other digital audio broadcast formats, including the ability to create personalized formats and content;

· wireless Internet technology in the automobile and satellite digital audio radio service, with enhanced sound quality comparable to that of compact discs and that provide numerous niche formats;

· in-band on-channel digital radio, which could improve the quality of existing AM and FM stations, including stations owned by us;

· Internet radio stations and Internet radio services;

· expanded approval of low-power FM radio, which could result in additional FM radio broadcast outlets designed to serve small, localized areas;

· enhanced capabilities of smart phones, MP3 players, tablet devices, electronic readers and other mobile devices; and

· portable digital devices and systems that permit users to listen to programming on a time-delayed basis.

These new technologies have the potential to introduce new market competitors or change the means by which radio advertisers can most efficiently and effectively reach their target audiences.  We may not have the resources to acquire new technologies or to introduce new services that could compete with these evolving technologies.

If we are unable to respond to changes in technology and evolving industry standards, our television stations may not be able to effectively compete.

New technologies could also adversely affect our television stations.  Programming alternatives such as cable, direct-to-home satellite services, mobile media services, pay-per-view, on-demand programming, the Internet, including Internet capability built into televisions, and home video and entertainment systems have fractionalized television viewing audiences.  Over the past decade, MVPDs have captured an increasing market share, while the aggregate viewership of the major television networks has declined.  In addition, the expansion of cable television and other technological changes, including the entry by certain telecommunications companies into the video services delivery market, and the launch of over-the-top providers that deliver video programming directly to viewers over the Internet has increased, and may continue to increase, competitive demand for programming.  Such increased demand, together with rising production costs may, in the future, increase our programming costs or impair our ability to acquire programming.  The enhanced video and audio capabilities of smart phones, MP3 players, tablet devices, electronic readers and other mobile devices also have the potential to affect television viewership.

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In addition, video compression techniques now in use with direct broadcast satellites and, increasingly, by cable and wireless providers, are expected to permit greater numbers of channels to be carried within existing bandwidth.  These compression techniques, as well as other technological developments, which are applicable to all video delivery systems and enable television broadcastersoperating digital signals to offer multiple channels, have the potential to provide vastly expanded programming to highly targeted audiences. Reduction in the cost of creating additional channel capacity could lower entry barriers for new channels and encourage the development of increasingly specialized niche programming.  This ability to reach very narrowly defined audiences may alter the competitive dynamics for advertising expenditures.  We are unable to predict the effect that these technological changes will have on the television industry or the future results of our television broadcast business.

Increased use by consumers of digital video recording technologies may decrease viewership of advertisements and result in decreased advertising revenues for our television stations.

Digital video recording technologies offered by cable and satellite systems allow viewers to digitally record, store and play back television programming at a later time.  Most of these technologies permit viewers to fast forward through advertisements; however, a digital video recording system introduced by satellite provider DISH Network in 2012 permits viewers that record and play back programming to skip advertisements entirely, subject to certain time limitations.  The major broadcast networks have challenged the DISH ad-skipping technology in court, and the outcome of the litigation is unknown.  The use of these technologies may decrease viewership of commercials as recorded by media measurement services such as Nielsen Media Research and, as a result, lower the advertising revenues of our television stations.  The current ratings provided by Nielsen for use by broadcast stations are limited to live viewing plus viewing of a digitally recorded program on the same day as the original air date and give broadcasters no credit for delayed viewing that occurs after the original air date.  The effects of new ratings system technologies including people meters and set-top boxes, and the ability of such technologies to be a reliable standard that can be used by advertisers is currently unknown.

Security breaches, computer malware or other “cyber attacks” could harm our business by disrupting our delivery of services and damaging our reputation.

Our operations routinely involve receiving, storing, processing and transmitting sensitive information pertaining to our business and our customers. Any unauthorized intrusion, malicious software infiltration, network disruption, denial of service, or similar act by any malevolent party could disrupt the integrity, continuity, security and trust of our systems or the systems of our clients or vendors. These events could create financial liability, regulatory sanction, or a loss of confidence in our ability to serve clients or cause current or potential clients to choose another service provider.

If the network programming we broadcast pursuant to network affiliation agreements does not maintain satisfactory viewership levels or if the networks we are affiliated with terminate or do not renew our affiliation agreements, our advertising revenues, financial condition and results of operations may be adversely affected.

The television viewership levels, and ultimately advertising revenue, for each of our stations are materially dependent upon network programming, which is provided pursuant to network affiliation agreements.  We cannot assure you that network programming will achieve or maintain satisfactory viewership levels. In particular, because four of our stations (including one of our low-power stations) are parties to affiliation agreements with ABC, three with NBC, three with FOX, two with CBS and one with CW, failures of these networks to provide programming to attract viewers or generate satisfactory ratings may have an adverse effect on our financial condition and results of operations.  In addition, we cannot assure you that we will be able to renew our network affiliation agreements on as favorable terms or at all.  The retransmission agreements which we negotiated with MVPDs for the rights to carry our signals and local programming in their pay television services to consumers are for multiple years with set rate increases.  Certain national networks have, and others may try to obtain from us a significant portion of the retransmission revenue for their programming content we are providing to the MVPDs.  The termination or non-renewal, or renewal on less favorable terms, of the affiliation agreements could have an adverse effect on us.  We renewed our network affiliation agreements with ABC, FOX, CW and MNT in 2011.

Changes in the relationship of television networks with their affiliates and other content providers and distribution channels also could affect our results of operation.  For example, networks and other content providers recently have begun to sell programming content through new distribution channels and offer viewers the ability to watch programs on-demand, rather than on an established “live” television broadcast schedule.

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The costs of television programming may increase, which could adversely affect our results of operations.

Television programming is a significant operating cost component in our broadcasting operations.  We cannot assure you that we will not be exposed in the future to increased programming costs.  Should such an increase occur, it could have an adverse effect on our results of operations.  Television networks have been seeking arrangements from their affiliates to share the networks’ programming costs.  We cannot predict the nature or scope of any such potential compensation arrangements or the effect, if any, on our operations. In addition, acquisitions of program rights for syndicated programming are usually made two or three years in advance and may require multi-year commitments, making it difficult to predict accurately how a program will perform.  In some instances, programs must be replaced before their costs have been fully amortized, resulting in write-offs that increase station operating costs and decrease station earnings.

If our key on-air or management talent does not remain with us or loses popularity, our advertising revenue and results of operations may be adversely affected.

We employ or contract with a number of on-air personalities and hosts of television and radio programs whose ratings success depends in part on audience loyalty in their respective markets.  Although we have entered into long-term agreements with some of our key on-air talent and program hosts to protect our interests in those relationships, we cannot assure you that all or any of these key employees will remain with us over the long term.  Furthermore, the popularity and audience loyalty to our key on-air talent and program hosts is highly sensitive to rapidly changing public tastes.  A loss of such popularity or audience loyalty could reduce ratings and may impact our ability to generate advertising revenue.

In addition, our key local management employees are important to our business since we believe that our growth and future success depends on retaining local management with knowledge of the community, its audience and its advertisers.  Our inability to attract or retain these skilled personnel could have a material adverse impact on our financial condition and results of operations.

Changes in the professional sports industry or changes in our contractual relationships with local professional sports teams could result in decreased ratings for our Milwaukee radio station and adversely affect our results of operations and financial condition.

Our Milwaukee radio station, WTMJ-AM, currently maintains exclusive radio broadcast rights for the Green Bay Packers, Milwaukee Bucks and Milwaukee Brewers, and arranges a statewide radio network for the broadcast of their games.  Our advertising revenue could be adversely affected by changes in the professional sports industry, such as a relocation of one of the local professional sports teams from the Wisconsin market or the potential loss of exclusivity due to league or team initiatives such as pay-per-listen, satellite radio or Internet broadcast of games.  In addition, we couldlose our exclusive broadcast rights during periodic competitive bidding, or suffer damage to the marketplace value of sports advertising due to factors such as a players’ strike, negative publicity or downturn in on-field performance of a team.

If cable systems and other video distribution systems do not carry our digital channels or we do not enter into acceptable agreements with such systems, our revenue and results of operations may be adversely affected.

Since our television stations are highly dependent on carriage by cable and satellite systems in many of the areas they service, any modifications to rules regarding the obligations of cable systems or satellite providers to carry digital television signals of local broadcast stations could result in some of our television stations or channels not being carried on cable systems or direct to home satellite systems, which could adversely affect our revenue and results of operations.  We have elected retransmission consent rather than must-carry with cable systems and satellite providers for most of our television stations. If we are unable to negotiate retransmission consent agreements in a timely manner or on favorable economic terms, some of our stations may not be carried on certain cable or direct to home satellite systems for a period of time and our revenue and results of operations could be adversely affected.  We may also be unable to negotiate or renegotiate acceptable agreements with other types of video distribution systems, such as telecommunications companies, which could also cause our revenue and results of operations to be adversely affected.

If we cannot renew our FCC broadcast licenses, our business will be impaired.

Our business depends upon maintaining our broadcast licenses, which are issued by the FCC for a term of eight years and are renewable.  Our timely-filed renewal applications for stations WTMJ-TV, WTMJ(AM) and WLWK-FM have not been granted  by the FCC.  Pursuant to FCC rules, our broadcast licenses for these stations remain in effect pending processing by the FCC of their timely filed renewal applications.  Interested parties may challenge a renewal application.  The FCC has the authority to revoke licenses, not renew them, or renew them with conditions, including renewals for less than a full term.  We cannot assure you that our future renewal applications will be approved, or that the renewals, even if granted, will not include conditions or qualifications that could adversely affect our operations.  If we fail to renew any of our licenses, or renew them with substantial conditions or modifications (including renewing one or more of our licenses for a term of fewer than eight years), it could prevent us from operating the affected station and generating revenue from it.

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The FCC may impose sanctions or penalties for violations of rules or regulations.

If we or any of our officers, directors or significant shareholders materially violate the FCC’s rules and regulations or are convicted of a felony or are found to have engaged in unlawful anticompetitive conduct or fraud upon another government agency, the FCC may, in response to a petition by a third party or on its own initiative, in its discretion, commence a proceeding to impose sanctions upon us that could involve the imposition of monetary penalties, the denial of a license renewal application, revocation of a broadcast license or other sanctions.  If the FCC were to issue an order denying a license renewal application or revoking a license, we would be required to cease operating the broadcast station only after we had exhausted all administrative and judicial review without success. In addition, the FCC has recently emphasized more vigorous enforcement of certain of its regulations, including indecency standards, sponsorship identification requirements, the prohibition on “payola” and equal employment opportunity outreach and recordkeeping requirements. These enhanced enforcement efforts could result in increased costs associated with the adoption and implementation of stricter compliance procedures at our broadcast facilities or FCC fines.

We could experience delays in expanding our business due to antitrust laws.

The Federal Trade Commission, the United States Department of Justice and the FCC carefully review our proposed business acquisitions and dispositions under their respective regulatory authority, focusing on the effects on competition, the number and types of stations owned in a market and the effects on concentration of market revenue share.  The Department of Justice has challenged proposed acquisitions of radio stations, particularly in instances where an existing licensee seeks to acquire additional radio stations in the same market, and could challenge proposed acquisitions of television stations on similar grounds.  Some of these challenges ultimately resulted in consent decrees requiring, among other things, divestitures of certain stations.  In general, the Department of Justice has more closely scrutinized radio station acquisitions that result in local market shares in excess of 40% of radio advertising revenue.  Any delay, prohibition or modification required by regulatory authorities could adversely affect the terms of a proposed transaction or could require us to modify or abandon an otherwise attractive acquisition opportunity.  The filing of petitions or complaints against us or any FCC licensee from which we acquire a station could result in the FCC delaying the grant of, refusing to grant, or imposing conditions on its consent to the assignment or transfer of control of licenses.

Regulatory changes may result in increased competition in our radio and television broadcasting business.

The radio and television broadcasting industry is subject to extensive and changing federal regulation.  Among other things, the Communications Act of 1934, as amended, and FCC rules and policies require FCC approval for transfers of control and assignments of licenses, and limit thenumber and types of broadcast properties in a market in which any person or entity may have an attributable interest.  Media ownership restrictions include a variety of limits on local ownership, such as a limit of one television station in medium and smaller markets and two stations in larger marketsaslong as one station is not a top-four rated station (known as the duopoly rule), a prohibition on ownership of a daily English-language newspaper and a television or radio station in the same market, and limits both on the ownership of radio stations, and on common ownership of radio stations and television stations, in the same local market.  In December 2011, the FCC issued a Notice of Rulemaking proposing to modify the newspaper broadcast cross-ownership rule and to eliminate the radio television cross-ownership rule.  We are unable to predict the outcome of this proceeding or of requests for review or appeals of any rule changes adopted by the FCC.

In addition, the 2004 Consolidated Appropriations Act prohibits any person or entity from having an attributable interest in broadcast television stations with an aggregate audience reach exceeding 39% of television households nationally.  The increase in the national television viewership cap gave the largest television operators the ability to continue to hold or to acquire additional stations, which may give them a competitive advantage over us, since they have much greater financial and other resources than we have.  In addition, the networks’ ability to acquire additional stations could give them “leverage” over their affiliates on issues such as compensation, program clearance and program distribution other than through their affiliates, in part because of the risk that a network facing an uncooperative affiliate could acquire a station in the market and terminate its agreement with that affiliate.

Congress, the FCC or other federal agencies may in the future consider and adopt new laws, regulations and policies regarding a wide variety of matters that could, directly or indirectly, affect the operation, ownership and profitability of our television and radio stations and result in the loss of audience share and advertising revenue for our stations.  Examples of such changes include:

· proposals to increase regulatory fees or to impose spectrum use or other fees on FCC licenses;

· proposals to restrict or prohibit the advertising of beer, wine and other alcoholic beverages;

· proposals to limit the tax deductibility of advertising expenses by advertisers;

· proposals to impose sales tax on advertising expense;

· proposals to revise the rules relating to political broadcasting;

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· proposals to require broadcast stations to operate studios in the communities to which they are licensed, requiring construction of new studios, and to provide staffing on a 24 hour per day basis; and

· proposals to require radio broadcasters to pay royalties to musicians and record labels for the performance of music played on the stations.

The FCC’s National Broadband Plan may result in a loss of spectrum for our stations and potentially adversely impact our ability to compete.

In March 2010, the FCC delivered its national Broadband Plan to Congress.  The Plan reviews the nation’s broadband infrastructure and recommends a number of initiatives designed to spur broadband deployment and use. In an effort to make available more spectrum for wireless broadband services, the Broadband Plan proposes to recapture and reallocate certain spectrum including 120 megahertz of broadcast spectrum, by incentivizing current private-sector spectrum holders to return some of their spectrum to the government by 2015 through such initiatives as voluntary spectrum auctions (with current licensees sharing in the auction proceeds) and “repacking” of channel assignments to increase efficient spectrum usage. If voluntary measures fail to provide the amount of spectrum the FCC considers necessary for wireless broadband deployment, the Broadband Plan proposes various mandates to reclaim spectrum, such as forced channel sharing.  In November 2010, the FCC issued rulemakings containing proposals that would enable wireless providers to have equal access to broadcast spectrum that could be made available through spectrum auctions as well as proposals to enable TV stations to voluntary combine operations on a single TV channel.  In February 2012 Congress passed legislation authorizing the FCC to conduct a reverse incentive auction in which licensees of television stations may voluntarily relinquish their spectrum usage rights in exchange for a portion of the proceeds received from new licensees who successfully bid in a forward auction for the right to use the repurposed spectrum.  The statute also authorizes the FCC to repack the spectrum now used by television broadcasters, subject to certain limitations, including the obligation to make all reasonable efforts to preserve the coverage area and population served by a television station.  However, the statute does not protect low power television stations such as KPSE-LP and KSAW-LD, which may be eliminated as part of the spectrum repacking process.  In October 2012, the FCC released a Notice of Proposed Rulemaking that includes proposals for the conduct of the reverse and forward spectrum auctions and the spectrum repacking process.  At this time we cannot predict the timing or outcome of implementation of the FCC’s proposed spectrum auctions and repacking, or how they will affect our television stations.

The performance of our NBC affiliates may suffer due to the joint venture between Comcast Corporation and NBC Universal and Comcast’s anticipated ownership of NBC Universal.

In January 2011, Comcast and General Electric Company (“GE”), the parent of NBC Universal (“NBCU”) consummated a joint venture in which the programming assets of Comcast and NBCU were combined and Comcast acquired a controlling interest in NBCU.  The FCC approved the joint venture in January 2011.  In February 2013, Comcast announced that it intends to acquire GE’s remaining interest in NBCU.     Comcast’s control and ultimate ownership of NBCU could impact our NBC-affiliated television stations.  We currently have a network affiliation agreement with NBC Universal for three of our television stations and a retransmission consent agreement with Comcast for distribution of several of our television stations.  Comcast’s control and ownership of  NBCU could reduce our ability to negotiate favorable terms under future network affiliation and cable carriage agreements.  In addition, Comcast could provide popular NBC sports and entertainment programming on additional outlets including co-owned cable channels and the Internet.  Comcast’s ownership of NBCU  may affect the economic incentives that currently form the basis of the network/affiliate relationship, and, over time, may result in the evolution of the network/affiliate relationship so that local affiliates become less important to the network.  Although the FCC Order approving the 2011 joint venture included certain conditions, many of which were contained in private agreements between Comcast and the major-network affiliate associations, to mitigate these concerns, Comcast’s ownership of NBCU could ultimately affect the profitability of our NBC affiliated stations.

The failure or destruction of satellites and transmitter facilities that we depend upon to distribute our programming could materially adversely affect our business and results of operation.

We use studios, satellite systems, transmitter facilities and the Internet to originate and/or distribute our station programs and network programs and commercials to affiliates.  We rely on third-party contracts and services to operate our origination and distribution facilities.  These third-party contracts and services include, but are not limited to, electrical power, satellite transponders, uplinks and downlinks and telecom circuits.  Distribution may be disrupted due to one or more third parties losing their ability to provide particular services to us, which could adversely affect our distribution capabilities.  A disruption can be caused as a result of any number of events such as local disasters (accidental or environmental), various acts of terrorism, power outages, major telecom connectivity failures or satellite failures.  Our ability to distribute programming to station audience and/or network affiliates may be disrupted for an undetermined period of time until alternate facilities are engaged and put on-line.  Furthermore, until third-party services resume, the inability to originate or distribute programming could have a material adverse effect on our business and results of operations.

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Proposed legislation could require radio broadcasters to pay royalties to record labels and recording artists.

Legislation has been previously introduced in Congress that would require radio broadcasters to pay a royalty to record labels and performing artists for use of their recorded songs.  Thus far, the legislation failed to pass but it may be reintroduced in the future.  Currently, we pay royalties to song composers and publishers through Broadcast Music, Inc. (“BMI”), the American Society of Composers, Authors and Publishers (“ASCAP”) and SESAC, Inc. (“SESAC”).  The proposed legislation would add an additional layer of royalties to be paid directly to the record labels and artists.  It is not currently known what proposed legislation, if any, will become law, whether industry groups will enter into an agreement with respect to fees, and what significance this royalty would have on our operations and financial results.

Changes relating to consumer information collection and use could adversely affect our ability to collect and use data, which could harm our business.

Public concern over methods of information gathering has led to the enactment of legislation in most jurisdictions that restricts the collection and use of consumer information.  Our publishing business relies in part on telemarketing sales, which are affected by “do not call” legislation at both the federal and state levels.  We also engage in e-mail marketing and the collection and use of consumer information in connection with our publishing and broadcasting businesses and our growing digital efforts.  Further legislation, government regulations, industry regulations, the issuance of judicial interpretations or a change in customs relating to the collection, management, aggregation and use of consumer information could materially increase the cost of collecting that data, or limit our ability to provide information to our customers or otherwise utilize telemarketing or e-mail marketing or distribute our digital products across multiple platforms, and could adversely affect our results of operations.

Decreases in circulation may adversely affect our revenues, and circulation decreases may accelerate as we offer expanded digital content and digital subscriptions.

Advertising and circulation revenues are affected by the number of subscribers and single copy purchasers, readership levels and overall audience reach.  Our daily newspaper, and the newspaper industry as a whole, is experiencing difficulty maintaining paid print circulation and related revenues.  This is due to, among other factors, increased competition from new media products and sources other than traditional newspapers (often free to users), and shifting preferences among some consumers to receive all or a portion of their news other than from a newspaper.  In addition, our expanded digital content and new digital subscriptions could negatively impact print circulation volumes if readers cancel subscriptions.

A prolonged decrease in net paid circulation copies could have a material effect on our revenues, particularly if we are not able to otherwise grow our readership levels and overall audience reach.  To maintain our circulation base, we may incur additional costs, and we may not be able to recover these costs through circulation and advertising revenues.

Our publishing business may suffer if there is a significant increase in the cost of newsprint or a reduction in the availability of newsprint.

The basic raw material for newspapers and shoppers is newsprint.  Our newsprint consumption related to our publications totaled $15.6 million in 2012, which was 9.5% of our total publishing revenue.  In 2012, we purchased the majority of our newsprint requirements through a purchasing agent, which has the option to purchase newsprint from multiple suppliers.  We may purchase additional newsprint in the spot market from other suppliers.  Our inability to obtain an adequate supply of newsprint in the future or significant increases in newsprint costs could have a material adverse effect on our financial condition and results of operations.

If we are unable to respond to changes in technology and evolving industry standards and trends, our publishing operations may not be able to effectively compete.

The publishing industry is being challenged by the preferences of today’s “on demand” culture, particularly among younger segments of the population.  Some consumers prefer to receive all or a portion of their news in new media formats and from sources other than traditional newspapers.  Information delivery and programming alternatives such as the Internet, various mobile devices, electronic readers, cable, direct satellite-to-home services, pay-per-view and home video and entertainment systems have fractionalized newspaper readership.  New digital subscription offerings may not attract readers in sufficient numbers to generate significant revenues or offset losses in paid print circulation revenues.  The shift in consumer behaviors has the potential to introduce new market competitors or change the means by which traditional newspaper advertisers can most efficiently and effectively reach their target audiences.  We may not have the resources to acquire new technologies or to introduce new products or services that could compete with these evolving technologies.

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Other Business Risks

Our business has been and may be in the future negatively affected by an impairment charge of goodwill, broadcast licenses or other intangible assets.

In 2012, due to declines in revenue share, declines in projected long-term market revenues, and a reduction in radio perpetuity growth rates, we recorded a pre-tax, non-cash impairment charge for broadcast licenses of $1.7 million.  In 2011, due to a decline in projected long-term market revenues and an increase in discount rates, we recorded a pre-tax, non-cash impairment charge for broadcast licenses of $0.9 million.  There was no impairment of our broadcast licenses in 2010 and there was no impairment of our goodwill in 2010, 2011 or 2012.   As of December 30, 2012, we had a total of $318.1 million of goodwill, broadcast licenses and other intangible assets on our balance sheet, representing 50.8% of our total assets.  The 2012 and 2011 impairment charges had, and any future non-cash impairment charge of goodwill, broadcast licenses or other intangible assets would have, an adverse effect on our financial condition and results of operations.

We may not be able to utilize deferred tax assets to offset future federal and state taxable income.

As of December 30, 2012, we had a total of $46.1 million of deferred tax assets on our balance sheet.  We expect to realize the deferred tax assets to reduce our consolidated federal and state income tax liabilities over a period of time not to exceed 20 years.  However, we may not be able to fully realize the deferred tax assets if our future federal and state taxable income and related income tax liability are insufficient to permit their use.  In the future, we may be required to record a valuation allowance against the deferred tax assets if we believe we are unable to realize them, which would have an adverse effect on our financial condition and results of operations.  In addition, if statutory tax rates are ever reduced, our overall deferred tax asset would be required to be revalued, which could also have an adverse effect on our financial condition and results of operation.

The economic environment or a return to volatility in US credit markets could affect our financing arrangements.

One or more of the lenders in our secured credit facility syndicate could be unable to fund future draws thereunder or take other positions adverse to us.  In such an event, our liquidity could be severely constrained with an adverse impact on our ability to operate our businesses.  In addition, our ability to meet our credit agreement’s financial covenants may also be affected by events beyond our control, including a further deterioration of current economic and industry conditions, which could negatively affect our earnings.  If it is determined we are not in compliance with these financial covenants, the lenders in our credit facility syndicate will be entitled to take certain actions, including acceleration of all amounts due under the facility.  If the lenders take such action, we may be forced to amend the terms of the credit agreement, obtain a waiver or find alternative sources of capital. Obtaining new financing arrangements or amending our existing one may result in significantly higher fees and ongoing interest costs as compared to those in our current arrangement.  If we are unable to obtain alternative sources of capital, it may be necessary to significantly restructure our business operations or sell assets, or, in the event of a prolonged and extensive economic decline, seek bankruptcy protection.

Our acquisition of WTVF-TV in Nashville was financed by borrowings under our amended and restated credit facility, which borrowings substantially increased our debt service obligations. As a result, we may have less cash flow available for business operations, we could become increasingly vulnerable to general adverse economic and industry conditions and interest rate trends, and our ability to obtain future financing may be limited.

We entered into an amendment and restatement to our then existing credit facility in December 2012 to provide for a secured term loan and revolving credit facility with aggregate commitments of $350 million to fund the purchase price for WTVF-TV in Nashville and for general corporate purposes.  As of December 30, 2012, we had $230.1 million in borrowings under our amended and restated credit facility.

Our ability to make required payments of principal and interest on our debt will depend on future performance of our businesses, which, to a certain extent, is subject to general economic, financial, competitive and other factors that are beyond our control.  In addition, our secured amended and restated credit facility contains financial and restrictive covenants that may limit our ability to, among other things, borrow additional funds or take advantage of business opportunities.  Our failure to comply with such covenants could result in an event of default that, if not cured or waived, could result in the acceleration of all our indebtedness or otherwise have a material adverse effect on our financial position, results of operation and debt service capability. 

Our increased level of debt and the financial and restrictive covenants contained in our secured amended and restated credit facility could have important consequences on our financial position and results of operations, including increasing our vulnerability to general adverse economic and industry conditions and detraction from our ability to successfully withstand a downturn in our markets or the economy generally; requiring us to dedicate a substantial portion of our cash flow from operations to required payments on debt; limiting our ability to obtain additional financing in the future; and making us vulnerable to increase in interest rates because debt under our secured amended and restated credit facility bears interest at variable rates.

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Our growth strategy includes future acquisitions which involve inherent risk.

In order to increase our market presence and advertising reach, we may make strategic business acquisitions that we believe complement our businesses.  Acquisitions have inherent risks which may have a material adverse effect on our business, financial condition, or results of operations, including, among other things:  (1) failure to successfully integrate the purchased operations, technologies, products or services and maintain uniform standard controls, policies and procedures; (2) substantial unanticipated integration costs; (3) loss of key employees including those of the acquired business; (4) diversion of management’s attention from other operations; (5) failure to retain the customers of the acquired business; (6) failure to achieve any projected synergies and performance targets; (7) additional debt and/or assumption of known or unknown liabilities; (8) potential dilutive issuances of equity securities; and (9) a write-off of goodwill, client lists, other intangibles and amortization of expenses.  If we fail to successfully complete acquisitions or integrate acquired businesses, we may not achieve projected results and there may be a material adverse effect on our business, financial condition and results of operations.

We may be unable to successfully integrate the operations of acquired businesses and may not achieve the cost savings and increased revenues anticipated as a result of these acquisitions. 

Achieving the anticipated benefits of acquisitions will depend in part upon our ability to integrate these businesses in an efficient and effective manner. The integration of companies, stations or operations that have previously operated independently may result in significant challenges; we may be unable to accomplish the integration smoothly or successfully. In particular, the coordination of geographically dispersed organizations with differences in corporate cultures and management philosophies may increase the difficulties of integration. The integration of acquired businesses may also require the dedication of significant management resources, which may temporarily distract management’s attention from our day-to-day operations. In addition, the process of integrating operations may cause an interruption of, or loss of momentum in, the activities of one or more of our businesses and the loss of key personnel from our company or the acquired businesses.  Further, employee uncertainty and lack of focus during the integration process may disrupt the businesses of our company or the acquired businesses. We may not be able to realize the benefits of anticipated integration of sales forces, asset rationalization and systems integration.

Sustained increases in costs of providing pension benefits may adversely affect our operations, financial condition and liquidity.

We have a funded, qualified defined benefit pension plan that covers certain employees and an unfunded, non-qualified pension plan for certain employees whose benefits under the qualified pension plan may be restricted due to limitations imposed by the Internal Revenue Service.  Effective January 1, 2011, the benefit accruals under the qualified defined benefit pension plan and the unfunded, non-qualified pension plan were permanently frozen.  Two significant elements in determining pension income or pension expense are the discount rate used in projecting benefit obligations and the expected return on plan assets.  A lower discount rate driven by lower interest rates would increase our pension expense by increasing the calculated value of our liabilities.  If our expected return on plan assets is not achieved, our pension expense and cash contributions to the pension plans would increase.  As of the end of 2012, our pension plan remains underfunded.  If the equity markets do not sufficiently recover or the discount rate does not increase or existing legislative relief is not enough, we will be obligated to make substantial contributions in future years to fund the deficiency.  Current projections indicate we will need to contribute $68.2 million over the next 10 years, beginning in 2013.  A significant increase in our obligation to make contributions to our pension plans would reduce the cash available for working capital, debt reduction and other corporate uses, and may have an adverse effect on our operations, financial condition and liquidity.

We depend on key personnel, and we may not be able to operate and grow our business effectively if we lose the services of any of our senior executive officers or are unable to attract qualified personnel in the future.

We are dependent upon the efforts of our senior executive officers.  The success of our business is heavily dependent on our ability to retain our current management and to attract and retain qualified personnel in the future.  Competition for senior management personnel is intense, and we may not be able to retain our personnel.  We have not entered into employment agreements with our key personnel, other than with our Chairman and Chief Executive Officer, and these individuals may not continue in their present capacity with us for any particular period of time.  We have, however, entered into change in control agreements with certain of our senior executives which provide, within two years after a change in control, severance payments and benefits to the executive if his or her employment is terminated without cause or the executive resigns for good reason.  We do not have key man insurance for any of our executive officers or key personnel.  The loss of any senior executive officer could require the remaining executive officers to divert immediate and substantial attention to seeking a replacement.  Our inability to find a replacement for any departing executive officer on a timely basis could adversely affect our ability to operate and grow our business.

Our business may be negatively affected by work stoppages, slowdowns or strikes by our employees or regulatory changes.

As of December 30, 2012, we and our subsidiaries had approximately 1,800 full-time and 700 part-time employees compared to approximately 1,700 full-time and 800 part-time employees at December 25, 2011.  Currently, there are 11 bargaining units representing approximately 600 (or approximately 22%) of our total number of employees.  We have entered into various collective bargaining agreements with these bargaining units.  Six of these agreements will expire within the next two years.

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We cannot assure you the results of negotiations of future collective bargaining agreements or of negotiations related to reopening of collective bargaining agreements in order to reduce our labor costs or achieve other objectives will be negotiated without interruptions in our businesses.  We cannot assure you that strikes will not occur in the future in connection with labor negotiations or otherwise.  Any prolonged strike or work stoppage could have a material adverse effect on our financial condition and results of operations.  We also cannot assure you the impact of future collective bargaining agreements will not have an adverse effect on our financial condition and results of operations.

We also are subject to a wide variety of employment laws and regulations. Future changes in applicable requirements or regulatory or judicial interpretations of these requirements could have a material adverse effect on our financial condition and results of operations.

ITEM 1B.  UNRESOLVED STAFF COMMENTS

None.

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ITEM 2. PROPERTIES

Our corporate headquarters are located in Milwaukee, Wisconsin.  We believe all of our properties are well maintained, are in good conditions and suitable for present operations.  There are no material encumbrances on any of our owned properties.  Our equipment is secured by liens pursuant to our secured credit facility.  The following are the principal properties operated by us and our subsidiaries and the approximate square footage as of December 30, 2012.

	Owned		Leased
Publishing
Printing plants, newsrooms, offices and distribution centers located in:
Milwaukee, WI (1)		500,000		5,000
West Milwaukee, WI (2)		479,000		-
Cedarburg, WI		17,000		-
Waukesha, WI		34,000		-
Sturtevant, WI (4)		-		10,000
Madison, WI		-		2,000
Menomonee Falls, WI		12,000		-
Waupaca, WI		73,000		-
Hartland, WI		13,000		4,000
Jefferson, WI		-		1,000
Mukwonago, WI				1,000
Wittenberg, WI		1,000
Elkhorn, WI		-		4,000
West Bend, WI		-		6,000
Hartford, WI		7,000		-
New London, WI		6,000		-
Johnson Creek, WI		-		5,000
Muskego, WI		-		5,000
Washington, D.C.		-		4,000
Broadcasting
Office, studios and transmitter and tower sites located in:
Milwaukee, WI (3)		109,000		-
Green Bay, WI		22,000		2,000
Las Vegas, NV		33,000		-
Lansing, MI		2,000		11,000
Palm Springs, CA		19,000		1,000
Omaha, NE		62,000		-
Tucson, AZ		29,000		2,000
Knoxville, TN (5)		26,000		-
Boise, ID		28,000		1,000
Wichita, KS		23,000		6,000
Springfield, MO		2,000		14,000
Tulsa, OK		22,000		1,000
Fort Myers, FL		21,000		1,000
Mount Bigelow, AZ		2,000		-
Nashville, TN		50,000		9,000

(1)  Includes our corporate headquarters and Journal Sentinel, Inc.'s business and editorial offices.

(2)  Production facility housing printing, packaging, inserting, recycling, distribution and transportation operations of theMilwaukee Journal Sentinel.

(3)  Includes our business operations' headquarters.

(4)  10,000 square feet leased to third party pursuant to lease expiring in August 2013.

(5)  Includes 5,000 square feet leased to third party pursuant to lease expiring in September 2015.

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ITEM 3. LEGAL PROCEEDINGS

We are subject to various legal actions, administrative proceedings and claims arising out of the ordinary course of business.  We do not believe that any such unresolved legal actions and claims will materially adversely affect our consolidated results of operations, financial condition or cash flows.

Executive Officers of Registrant

The following table sets forth the names, ages and positions of our executive officers as of March 1, 2013.

Name	Title	Age
Steven J. Smith	Chairman of the Board and Chief Executive Officer	62
Andre J. Fernandez	President and Chief Financial Officer	44
Elizabeth Brenner	Executive Vice President	58
Mary Hill Taibl	Senior Vice President, General Counsel, Secretary and Chief Compliance Officer	58
Jason R. Graham	Vice President and Corporate Controller	40
Michael O'Brien	Vice President	51
Royce A. Miles	Vice President	45
William M. Kaiser	Vice President	62
James P. Prather	Vice President	55
Karen O. Trickle	Vice President and Treasurer	56
Steven H. Wexler	Vice President	52
Faith E. Perkins	Vice President	42

Steven J. Smith is Chairman of the Board and Chief Executive Officer.  Mr. Smith was elected Chief Executive Officer in March 1998 and Chairman in December 1998.  Mr. Smith was President from 1992 to 1998 and from 2010 to February 2012.  He also added the title Chief Operating Officer in 1996.  Mr. Smith has been a director since May 2003.  Mr. Smith was a director of our predecessor company since 1987.

Andre J. Fernandez is President and Chief Financial Officer.  Mr. Fernandez was elected President in February 2012, Executive Vice President in October 2008 and Chief Financial Officer in November 2008.  Prior thereto, Mr. Fernandez held various financial leadership positions with the General Electric Company (GE) since 1997, and most recently served as Senior Vice President, Chief Financial Officer and Treasurer for Telemundo Communications Group, Inc., a U.S. Spanish-language television network and a wholly-owned division of NBC Universal.

Elizabeth Brenner is Executive Vice President.  Ms. Brenner was elected Executive Vice President in December 2004.  In addition, Ms. Brenner is Chief Operating Officer of our publishing businesses and has been President of Journal Sentinel, Inc. and Publisher of the Milwaukee Journal Sentinel since January 2005.  Ms. Brenner was Publisher of The News Tribune, a Tacoma, Washington publication of the McClatchy Company, from 1998 to December 2004.

Mary Hill Taibl is Senior Vice President, General Counsel, Secretary and Chief Compliance Officer.  Ms. Leahy was elected Senior Vice President and General Counsel in May 2003, Secretary in January 2008 and Chief Compliance Officer in April 2005.  Prior thereto, she served as Vice President and General Counsel-Business Services since July 2001.  Ms. Leahy was General Counsel Americas, GE Medical Systems, a developer and manufacturer of medical diagnostic equipment, from January 1999 to July 2001.

Jason R. Graham is Vice President and Controller.  Mr. Graham was elected Vice President and Controller in June 2012.  Prior thereto, Mr. Graham held various financial leadership positions with Brookdale Senior Living, Inc., a national owner and operator of senior living communities, since October 2006 where he most recently served as Vice President and Corporate Controller.   Mr. Graham has also previously held financial leadership positions with KPMG LLP, GE Healthcare and APW Ltd and is a certified public accountant.

Michael O’Brien is Vice President. Mr. O’Brien was elected Vice President in May 2010.  Prior thereto, he served as VP Information Systems at InfuScience, Inc., a privately held national home infusion provider, since April 2006. Mr. O’Brien was Director of IT for Jefferson Wells International, a wholly owned subsidiary of Manpower Inc., from January 2003 to April 2006, the North American Director of IT for Datex-Ohmeda, a manufacturer of anesthesia and critical care medical equipment, from September 2001 to January 2003, and the VP CIO at Alterra Healthcare, a national provider of assisted living services, from December 1998 to August 2001.

Royce A. Miles is Vice President.  Mr. Miles was elected Vice President in April 2010.  In addition, Mr. Miles has been Executive Vice President and General Manager of our publishing businesses since September 2010.  Prior thereto, Mr. Miles held various other positions within Journal Sentinel, Inc. since October 1998.

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William M. Kaiser is Vice President.  Mr. Kaiser was elected Vice President in April 2010.  In addition, Mr. Kaiser has been Senior Vice President of Journal Sentinel, Inc. and Editor of the Milwaukee Journal Sentinel since 1997.  Prior thereto, he was Managing Editor of the Milwaukee Journal Sentinel and Milwaukee Journal.

James P. Prather is Vice President.  Mr. Prather was elected Vice President in March 1999.  In addition, Mr. Prather has been Executive Vice President, Television and Radio Operations of Journal Broadcast Group since April 2005 and President of News and Vice President and General Manager of KTNV-TV since August 2003.  He was Senior Vice President and President of News, Journal Broadcast Group from August 2003 to April 2005.  Mr. Prather was President-Television, Journal Broadcast Group from December 1998 to August 2003 and General Manager of WTMJ-TV from 1995 to August 2003.

Karen O. Trickle is Vice President and Treasurer.  Ms. Trickle was elected Treasurer in December 1996 and Vice President in March 1999.

Steven H. Wexler is Vice President.  Mr. Wexler was elected Vice President in May 2007.  In addition, Mr. Wexler has been Executive Vice President of Journal Broadcast Group since January 2007.  From 2005 to 2006, Mr. Wexler was Senior Vice President of Journal Broadcast Group and he held various other positions within Journal Broadcast Group from 1993 to 2004.

Faith E. Perkins was elected Vice President in August 2012.  Prior thereto, Ms. Perkins various human resources leadership positions at Cox Media Group, a privately held media entity, since 2006, where she most recently served as regional vice president human resources.  Ms. Perkins has also previously held positions as vice president of human resources for Susquehanna Pfaltzgraff Co., and also served in a human resources leadership capacity with Fidelity Investments and DNA Enterprises, and staffing manager at Fidelity Investments.

There are no family relationships between any of the executive officers.  All of the officers are elected annually at the first meeting of the board of directors held after each Annual Meeting of Shareholders and hold office until their successors are elected and qualified.  There is no arrangement or understanding between any executive officer and any other person pursuant to which he or she was elected as an officer.

ITEM 4. MINE SAFETY DISCLOSURES

Not applicable.

PART II

ITEM 5. MARKET FOR REGISTRANT’S COMMON EQUITY, RELATED STOCKHOLDER MATTERS AND ISSUERPURCHASES OF EQUITY SECURITIES

We are authorized to issue 170 million shares of class A common stock; 120 million shares of class B common stock; and 10 million shares of preferred stock.

Class A shares are listed for trading on the New York Stock Exchange under the symbol “JRN.”  Class A shareholders are entitled to one vote per share.

Class B shares are primarily held by our current and former employees, our non-employee directors and members of the family of our former chairman Harry J. Grant and entities for the benefit of members of the family (which we collectively refer to as the “Grant family shareholders”).  These shares are entitled to ten votes per share.  Each class B share is convertible into one class A share at any time, but first must be offered for sale to other eligible purchasers through the offer procedures set forth in our amended and restated articles of incorporation.  There is no public trading market for the class B shares, although shares can be offered for sale to eligible purchasers under our amended and restated articles of incorporation.

In August 2012, we repurchased all 3.3 million outstanding shares of class C common stock, including all rights associated with such shares of class C common stock, from the Grant family shareholders.

As of March 1, 2013, there were 111 record holders of Class A common stock and 1,640 holders of class B common stock.  We have no outstanding shares of class C common stock or preferred stock.

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The following table provides information about our repurchases of our class A and B common stock for the fourth quarter ended December 30, 2012:

Issuer Purchases of Equity Securities

	(a)			(b)		(c)		(d)
Period	Total Number of Shares Purchased			Average Price Paid Per Share		Total Number of Shares Purchased as Part of Publicly Announced Plans Or Programs (1)		Dollar Value of Shares That May Yet Be Purchased Under the Plans or Programs (2)
September 24, 2012 to October 21, 2012		-			-		-	$	37,353,739
October 22, 2012 to November 18, 2012		-			-		-	$	37,353,739
November 19, 2012 to December 30, 2012		18,392	(3)		-		-	$	37,353,739

(1) Represents shares of our class A common stock.

(2) In July 2011, our board of directors authorized a share repurchase program of up to $45.0 million of our outstanding class A common stock and/or class B common stock until the end of fiscal 2013.

(3) Represents 18,392 shares of class B common stock transferred from employees to us to satisfy tax withholding requirements in connection with the vesting of restricted stock under the 2007 Omnibus Incentive Plan.

The high and low sales prices of our class A common shares for the four quarters of 2012 and 2011 as reported on the New York Stock Exchange and the dividends declared per class A and class B common share for the four quarters of 2012 and 2011 were as follows:

	2012						2011
					Cash						Cash
	High		Low		Dividend		High		Low		Dividend
First Quarter	$	5.70	$	4.38	$	-	$	6.18	$	4.66	$	-
Second Quarter		5.70		3.94		-		6.06		4.61		-
Third Quarter		5.85		4.81		-		5.21		2.93		-
Fourth Quarter		5.77		5.00		-		4.70		2.71		-

Dividends

The declaration of future dividends is subject to the discretion of our board of directors in light of all relevant factors, including earnings, general business conditions, working capital requirements, capital spending needs, debt levels and contractual restrictions.  Our board of directors reviews these factors at each quarterly board of directors meeting. Our secured credit facility contains restrictions on the payment of dividends, such that the aggregate amount of cash dividends paid and share repurchases does not exceed the greater of $30.0 million and such amount that the pro forma ratio is greater than 1.20 to 1.00 for the consecutive four quarter period preceding the quarter in which such cash payment is made.  Pursuant to our amended and restated articles of incorporation, each class of common stock has equal rights with respect to cash dividends.

In April 2009, our board of directors suspended dividends on our class A and class B shares, and suspended the payment of the cumulative minimum unpaid and undeclared dividend on our formerly outstanding class C shares.  Prior to the August 2012 repurchase of our class C shares, the accumulated minimum class C dividend of approximately $0.14 per share each quarter was required to be paid prior to the payment of any dividends on our class A and class B shares.

Stock Performance Information

The following information in this Item 5 of this Annual Report on Form 10-K is not deemed to be “soliciting material” or to be “filed” with the SEC or subject to Regulation 14A or 14C under the Securities Exchange Act of 1934 or to the liabilities of Section 18 of the Securities Exchange Act of 1934, and will not be deemed to be incorporated by reference into any filing under the Securities Act of 1933 or the Securities Exchange Act of 1934, except to the extent we specifically incorporate it by reference into such a filings.

The following graph compares, on a cumulative basis, changes in the total return on our class A common stock with the total return on the Standard & Poor’s 500 Stock Index and the total return on a peer group comprised of eight corporations that concentrate on newspapers and broadcast operations.  Our peer group is comprised of Belo Corp., Gannett Company, Inc., Lee Enterprises, Inc., The McClatchy Company, The New York Times Company, The E. W. Scripps Company, Media General, Inc. and The Washington Post Company.  This graph assumes the investment of $100.00 on December 31, 2007 and the reinvestment of any dividends since that date.

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		12/07		12/08		12/09		12/10		12/11		12/12
Journal Communications, Inc	$	100.00	$	29.41	$	47.94	$	62.06	$	56.22	$	62.91
S&P 500 Index		100.00		63.00		79.67		91.67		93.61		108.59
Peer Group		100.00		31.98		54.73		54.19		46.15		54.83

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ITEM 6. SELECTED FINANCIAL DATA

The following table presents our selected financial data.  The selected financial data for the years ended December 30, 2012, December 25, 2011, and December 26, 2010 and as of December 30, 2012, and December 25, 2011, have been derived from our audited consolidated financial statements, including the notes thereto, appearing elsewhere in this Annual Report on Form 10-K.  The selected financial data for the years ended December 27, 2009 and December 28, 2008 and as of December 26, 2010, December 27, 2009 and December 28, 2008, have been derived from our audited consolidated financial statements, including the notes thereto, not included in this Annual Report on Form 10-K.  This table should be read together with our other financial information, including “Management’s Discussion and Analysis of Financial Condition and Results of Operations” and the consolidated financial statements, including the notes thereto, appearing elsewhere in this Annual Report on Form 10-K.

	2012(1)			2011(2)			2010			2009(3)			2008(4)
	(dollars and shares in thousands, except for per share amounts)
Statement of Operations Data
Revenue	$	400,042		$	356,793		$	376,759		$	365,534		$	451,713
Operating costs and expenses		338,369			316,132			323,735			335,763			402,247
Goodwill and broadcast license impairment		1,681			879			-			20,133			375,086
Operating earnings (loss)		59,992			39,782			53,024			9,638			(325,620	)
Total other income and (expense)		(4,461	)		(3,525	)		(3,281	)		(2,803	)		(8,165	)
Earnings (loss) from continuing operations before income taxes		55,531			36,257			49,743			6,835			(333,785	)
Provision (benefit) for income taxes		22,206			14,412			19,065			1,927			(107,036	)
Earnings (loss) from continuing operations		33,325			21,845			30,678			4,908			(226,749	)
Gain (loss) from discontinued operations, net of taxes		-			341			3,703			(601	)		2,346
Net earnings (loss)	$	33,325		$	22,186		$	34,381		$	4,307		$	(224,403	)
Diluted weighted average shares outstanding		50,091			51,088			50,789			50,400			51,917
Diluted - Class A and B common stock:
Continuing operations	$	0.61		$	0.36		$	0.52		$	0.06		$	(4.40	)
Discontinued operations		-			0.01			0.07			(0.01			0.04
Net earnings (loss)	$	0.61		$	0.37		$	0.59		$	0.05		$	(4.36	)
Cash dividends:
Minimum class C	$	0.35	(5)	$	0.57	(6)	$	0.57	(6)	$	0.57	(7)	$	0.57
Class B	$	-		$	-		$	-		$	0.02		$	0.32
Class A	$	-		$	-		$	-		$	0.02		$	0.32
Segment Data
Revenue:
Broadcasting	$	235,627		$	186,080		$	194,365		$	171,491		$	209,914
Publishing		164,947			170,976			182,799			194,196			241,972
Corporate eliminations		(532	)		(263	)		(405	)		(153	)		(173	)
Total Revenue	$	400,042		$	356,793		$	376,759		$	365,534		$	451,713
Operating earnings (loss):
Broadcasting	$	56,228		$	31,001		$	43,559		$	3,068		$	(319,610	)
Publishing		11,622			15,901			18,222			13,796			2,322
Corporate eliminations		(7,858	)		(7,120	)		(8,757	)		(7,226	)		(8,322	)
Total operating earnings (loss)	$	59,992		$	39,782		$	53,024		$	9,638		$	(325,610	)

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	2012(1)			2011(2)			2010			2009(3)			2008(4)
	(dollars and shares in thousands, except for per share amounts)
Other Financial Data
Depreciation	$	21,074		$	21,764		$	22,697		$	23,894		$	24,918
Amortization	$	1,776		$	1,567		$	1,932		$	1,975		$	1,776
Capital expenditures	$	12,736		$	10,661		$	9,391		$	7,680		$	20,805
Cash dividends	$	-		$	-		$	-		$	1,476		$	18,527
Cash Flow Data
New cash provided by (used for):
Operating activities	$	77,662		$	45,534		$	71,819		$	69,113		$	69,534
Investing activities	$	(240,316	)	$	(8,877	)	$	6,174		$	(11,639	)	$	(46,043	)
Financing activities	$	162,666		$	(36,859	)	$	(79,739	)	$	(65,147	)	$	(27,033	)
Discontinued operations	$	-		$	564		$	433		$	7,002		$	1,326
Balance Sheet Data
Property and equipment, net	$	171,354		$	168,200		$	179,725		$	195,649		$	211,974
Intangible assets, net	$	318,118		$	111,617		$	114,512		$	115,836		$	132,111
Total assets	$	625,803		$	417,725		$	431,770		$	473,187		$	542,599
Total debt	$	246,030		$	41,305		$	74,570		$	151,375		$	215,090
Total equity	$	205,501		$	206,188		$	208,927		$	171,075		$	168,062

(1)  On June 25, 2012, we completed the purchase of KHTT-FM and KBEZ-FM in Tulsa, Oklahoma.  On October 22, 2012, we closed on the purchase of the remaining assets of WACY-TV in Appleton, Wisconsin.  On December 3, 2012, we completed the sale of WKTI-AM in Knoxville, Tennessee.  On December 3, 2012, we completed the sale of Hodag Buyers’ Guide, North Star Journal, Merrill Foto News, Wausau Buyers’ Guide, Stevens Point Buyers’ Guide, Wood County Buyers’ Guide, Waupaca Buyers’ Guide, Waupaca County Post East, Waupaca County Post West, Clintonville Shoppers’ Guide, New London Buyers’ Guide, Silent Sports, Waupacanow.com, Merrillfotonews.com, Starjournalnow.com, Silentsports.net, Wibuyersguide.com and a single copy distribution network based in Rhinelander, WI.  On December 6, 2012, we completed the acquisition of NewsChannel 5 Network, LLC in Nashville, Tennessee.

(2)  In June 2011, we completed the sale of Pelican Press and Pelican Press Marketplace businesses, which operated in Sarasota, Florida.  In August 2011, we completed the sale of the remaining Florida-based community newspapers and shoppers businesses, including Florida Mariner, Clay Today, Clay County Leader, Ponte Vedra Recorder, St. Augustine Underground, First Coast Register and Car Connection.

(3)  On April 23, 2009, we completed the purchase of CW affiliate, KNIN-TV, in Boise, Idaho.  On September 25, 2009, we        completed the sale of KGEM-AM and KCID-AM in Boise, Idaho.

(4) On January 9, 2008, we completed the purchase of the Iola Herald and Manawa Advocate in Waupaca County, Wisconsin.  On January 28, 2008, we completed the purchase of My Network affiliate KPSE-LP, Channel 50, in Palm Springs, California.  On March 19, 2008, we completed the purchase of the Clintonville Shopper’s Guide and the Wittenberg Northerner Shopping News in Waupaca County, Wisconsin.  On July 22, 2008, we completed the purchase of CW Network affiliate, KWBA-TV, in Sierra Vista, Arizona.  On October 6, 2008, we completed the purchase of Waupaca Publishing Company in Waupaca, Wisconsin.

(5) Dividends of $0.35 per share were accrued for 2012.

(6) Dividends of $0.57 per share were accrued for 2011 and 2010.

(7)  The first quarter 2009 dividend of $0.142 per share was paid.  Dividends of $0.428 per share were accrued but not paid for the remaining three quarters of 2009.

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ITEM 7. MANAGEMENT’S DISCUSSION AND ANALYSIS OF FINANCIAL CONDITION AND RESULTS OFOPERATIONS

The following discussion of our financial condition and results of operations should be read together with our audited consolidated financial statements for the three years ended December 30, 2012, including the notes thereto, appearing elsewhere in this Annual Report on Form 10-K.  This discussion contains forward-looking statements.  See “Forward-Looking Statements” for a discussion of uncertainties, risks and assumptions associated with these statements.

Overview

Our business segments are based on the organizational structure used by management for making operating and investment decisions and for assessing performance.  Our reportable business segments are: (i) broadcasting; (ii) publishing; and (iii) corporate.  Our broadcasting segment, operating in 12 states, consists of 34 radio stations and 15 television stations.  The television stations include WACY-TV in Appleton, Wisconsin that we purchased on October 22, 2012 and was previously operated under a local marketing agreement (LMA) and WTVF-TV in Nashville, Tennessee that we purchased on December 6, 2012.  Results from our digital media assets are included in our broadcasting and publishing segments.  Our publishing segment consists of the Milwaukee Journal Sentinel, which serves as the only major daily newspaper for the Milwaukee metropolitan area, and several community publications - primarily in southeastern Wisconsin - as well as print facilities in Milwaukee and Waupaca, Wisconsin.  Our corporate segment consists of unallocated corporate expenses and revenue eliminations.

Revenue in the broadcast industry is derived primarily from the sale of advertising time to local, national, and political and issue advertisers, retransmission fees and, to a lesser extent, from barter, digital revenue and other revenue.  Our television and radio stations are attracting new local advertisers through the creation of new local content and programs that combine television or radio with digital.  Because television and radio broadcasters rely upon advertising revenue, they are subject to cyclical changes in the economy.  The size of advertisers’ budgets, which are affected by broad economic trends, affects the radio industry in general and the revenue of individual television stations in particular.  Our broadcasting business continues to experience an uneven economic recovery across the markets in which we operate due to continued challenges in employment and the housing markets.  Our broadcasting business also is affected by audience fragmentation as audiences have an increasing number of options to access news and other programming.  Television advertising revenue and rates in even-numbered years typically benefit from political and issue advertising.  As the demand for advertising increases on the limited available inventory, we have the opportunity to increase average unit rates we charge our customers.  Even-numbered years also benefit from Olympics related advertising on our three NBC affiliates.  The increased ratings during the Olympic time period, which fell during the third quarter of 2012, provided us the opportunity to sell advertising at premium rates.

Over the past several years, fundamentals in the newspaper industry have continued to deteriorate.  Retail and classified run-of-press (ROP) advertising have decreased from historic levels due in part to department store consolidation, weakened employment, automotive and real estate economics and a migration of advertising to the Internet and other advertising forms.  However, in the second half of 2012, the daily newspaper experienced year-over-year growth in retail ROP due to special programs and initiatives.  Circulation declines and online competition have also negatively impacted newspaper industry revenues.

Revenue from our broadcasting businesses increased $49.5 million in 2012 compared to 2011.  This was primarily due to a $31.6 million increase in political and issue advertising revenue, a $6.8 million increase in local advertising revenue, a $5.4 million increase in national advertising revenue, a $2.7 million increase in Olympic advertising revenue, a $2.3 million increase in retransmission revenue, and a $0.7 million increase in other revenue.  The increase in national advertising revenue was driven by the political, media and automotive categories.  The increase in local advertising revenue was driven by the automotive, political, and casino and gambling categories.  Total expenses from our broadcasting business increased $24.3 million, or 15.7%, in 2012 compared to 2011, primarily due to an increase in employee-related costs, national sales representatives’ commission expenses, acquisition and integration-related costs, expenses related to the new Green Bay Packers preseason network agreement and increases in network costs.  Operating earnings from our broadcasting business increased $25.2 million in 2012 compared to 2011, primarily due to an increase in political and issue and Olympic advertising revenue, partially offset by an increase in operating expenses.

On December 6, 2012, Journal Broadcast Group, our broadcasting business, acquired 100% equity interests in NewsChannel 5 Network, LLC which owns the CBS-affiliate WTVF-TV, in Nashville, Tennessee.  The total purchase price for the station was $220.0 million including a working capital adjustment of $5.0 million.  On October 22, 2012, we completed the purchase of WACY-TV for $2.0 million.  On June 25, 2012, we completed the asset purchase of KHTT-FM and KBEX-FM in Tulsa, Oklahoma for $11.7 million.

In December 2012, Journal Community Publishing Group, Inc., our community newspapers and shoppers business, completed the sale of the majority of our northern Wisconsin publications.  Net proceeds were $1.2 million plus a note receivable of $0.8 million, and we recorded a pre-tax loss on the sale, net of transaction expenses, of $0.3 million.  The divestitures allow us to focus our efforts on operating the only major daily newspaper for the Milwaukee metropolitan area, our community  publications - primarily in southeastern Wisconsin - as well as print facilities in Milwaukee and Waupaca, Wisconsin.

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In 2012, our publishing businesses continued to be impacted by the uneven economic recovery and the secular and cyclical influences affecting the newspaper industry.  We have seen advertisers reduce their spending in many advertising categories.  Retail advertising revenue decreased $3.8 million in 2012 compared to 2011, primarily due to a decrease in preprint advertising at the daily newspaper from the department store, telecommunications, and building categories and the sale of the Florida-based community newspapers and shoppers in 2011, partially offset by the increase in retail ROP from special programs and initiatives.  The sale of the Florida-based community newspapers and shoppers accounted for $2.8 million of the year-over-year decline.  Classified advertising revenue also decreased in 2012 by $3.5 million compared to 2011.  The largest declines were in the automotive and employment categories at the daily newspaper, combined with $0.3 million year-over-year decline from the sale of the Florida-based community newspapers and shoppers in 2011.  Publishing digital advertising revenue of $12.6 million increased 9.8%, primarily due to increases in retail sponsorships and other revenue; partially offset by declines in classified advertising revenue.  National advertising revenue decreased $1.2 million in 2012 due to a decrease in ROP and preprint advertising in the furniture and business services categories.  In the first quarter of 2012, the Milwaukee Journal Sentinel introduced a digital subscription program, or “paywall,” on our jsonline.com website.  Integrated into the launch of the “JS Everywhere” subscription was a price increase to our home delivery subscribers, who gain full access to all digital products, including the new iPad app, mobile phone app and jsonline.com with their subscription fee.This contributed to a circulation revenue increase of $1.3 million in 2012 compared to 2011.  At our daily newspaper, commercial delivery revenue decreased in 2012 by $0.1 million compared to 2011. Commercial printing revenue at our daily newspaper increased $0.9 million in 2012 compared to 2011, driven by increased volume and one large new customer.  Total expenses at our publishing businesses decreased $1.8 million in 2012 compared to 2011, primarily due to expense savings from previous workforce reduction charges.  Operating earnings at our publishing businesses decreased $4.3 million in 2012 compared to 2011.  The decrease in operating earnings was primarily due to the impact of decreased advertising revenue, combined with a $0.6 million year-over-year decline from the sale of the Florida-based community newspapers and shoppers in the second and third quarter of 2011 and rising costs relating to workers’ compensation and pension.

Advertising revenue at our broadcasting and publishing businesses reflects continued cautious behavior of both our customers and consumers.  While we are seeing some improvement in advertising spending at our broadcasting business, persistent high unemployment, lack of strong economic growth and continued economic uncertainty temper our optimism.  Revenue levels in our broadcasting business will continue to be affected by increased competition for audiences.  We do not expect that revenues at our daily newspaper will return to revenue levels reported in 2012 or prior years given the secular changes affecting the newspaper industry.

We continue to seek in-market growth opportunities in traditional or digital media, make capital investments in our businesses which we expect to positively impact revenue, and continue to look for new acquisition opportunities within broadcast.  Our acquisition strategy will hinge upon our ability to identify strategic candidates, negotiate definitive agreements on acceptable terms and, as necessary, secure additional financing.  The purchases of the two radio stations in Tulsa, Oklahoma, the Nashville CBS affiliate WTVF-TV NewsChannel 5, and the remaining assets of WACY-TV in Green Bay, Wisconsin are consistent with one of our strategic goals of creating additional broadcast scale in new and existing markets.

Annual Broadcast License Impairment Tests

Our annual impairment test on broadcast licenses was performed at individual television and radio stations as of September 24, 2012. The impairment tests indicated two of our television broadcast licenses and two of our radio broadcast licenses were impaired due to declines in revenue share, declines in projected long-term market revenues, and a reduction in radio perpetuity growth rates.  The changes in the discount rate used for our broadcast licenses are primarily driven by changes in the expected return on the public equity of comparable companies in the television and media sector and the average cost of capital.  In accordance with the Financial Accounting Standards Board’s (FASB) guidance for goodwill and intangible assets, our broadcast licenses were written down to their estimated fair value of $79.9 million (excludes the broadcast license acquired in December 2012 with the acquisition of NewsChannel 5 Network, LLC), resulting in a $1.0 million non-cash impairment charge for television and a $0.7 million non-cash impairment charge for radio in the fourth quarter of 2012.

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For broadcast licenses at individual television and radio stations, we used the Greenfield Method, an income approach commonly used in the broadcast sector, to estimate fair value.  This approach assumes the start up of a new station by an independent market participant, and incorporates assumptions that are based on past experience and judgments about future market performance.  These variables include, but are not limited to: the forecasted growth rate of each market (including market population, household income and retail sales), estimated market share, profit margins and operating cash flows of an independent station within a market, estimated capital expenditures and start up costs, risk-adjusted discount rate, likely media competition within the market and expected growth rates into perpetuity to estimate terminal values.  Adverse changes in significant assumptions such as an increase in discount rates, or a decrease in projected market revenues, market share or operating cash flows could result in additional non-cash impairment charges on our broadcast licenses in future periods, which could have a material impact on our financial condition and results of operations.

We based the valuation of broadcast licenses on our internal projections and industry-based assumptions:

	September 24, 2012			September 26, 2011			September 27, 2010			September 28, 2009
Television
Discount rate		11.5	%		11.8	%		10.7	%		13.2	%
Tax rate		39.0			39.0			39.0			39.0
Long-term growth rate		2.5			2.5			3.0			3.0
Radio
Discount rate		10.5	%		10.4	%		10.4	%		10.5	%
Tax rate		39.0			39.0			39.0			39.0
Long-term growth rate		2.0			2.5			2.5			2.5

As of December 30, 2012, if we were to increase the discount rates by 100.0 basis points and by 200.0 basis points, it would result in impairment charges of $0.7 million and $1.9 million, respectively.  If we were to decrease the long-term growth rates by 50.0 basis points and by 100.0 basis points, it would result in impairment charges of $0.3 million and $1.1 million, respectively.

Interim and Annual Goodwill Impairment Tests

Our annual impairment tests on goodwill associated with our broadcasting reporting unit and our community newspaper and shoppers reporting unit as of September 24, 2012, the first day of our fiscal fourth quarter, indicated there was no impairment of our goodwill.

For purposes of testing the carrying values of goodwill related to our broadcasting reporting unit, we determine fair value by using an income and a market valuation approach.  The income approach uses expected cash flows of the reporting unit.  The cash flows are discounted for risk and time value.  In addition, the present value of the projected residual value is estimated and added to the present value of the cash flows.  The market approach is based on price multiples of publicly traded stocks of comparable companies to estimate fair value.  We assign a greater weight to the income approach as the market approach is deemed less reliable due to the differences in entity size and business model between our broadcasting reporting unit and the comparable companies selected.  We base our fair value estimates, in large measure, on projected financial information which we believe to be reasonable.  However, actual future results may differ from those projections, and those differences may be material.  The valuation methodology used to estimate the fair value of our reporting unit requires inputs and assumptions (i.e., market growth, operating cash flow margins and discount rates) that reflect current market conditions as well as management judgment.

We based the valuation of goodwill related to our broadcasting reporting unit on our internal projections and industry-based assumptions:

	September 24, 2012			September 26, 2011			September 27, 2010
Television
Discount rate		10.5	%		10.8	%		9.7	%
Tax rate		39.0			39.0			39.0
Long-term growth rate		2.5			2.5			3.0
Radio
Discount rate		9.0	%		11.0	%		9.4	%
Tax rate		39.0			39.0			39.0
Long-term growth rate		2.0			2.5			2.5

As of December 30, 2012, if we were to increase the discount rates by 200.0 basis points or decrease the long term growth rates by 100.0 basis points, step two of the goodwill impairment test would not be triggered.  

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For purposes of testing the carrying value of goodwill related to our community newspaper and shoppers reporting unit, we determine fair value using an income and a market valuation approach.  The income approach uses expected cash flows of the reporting unit.  The cash flows are discounted for risk and time value.  In addition, the present value of the projected residual value is estimated and added to the present value of the cash flows.  The market approach is based on price multiples of publicly traded stocks of comparable companies to estimate fair value.  Each approach estimated a fair value exceeding carrying value.  We assign a greater weight to the income approach as the market approach is deemed less reliable due to the differences in entity size and business model between our community newspapers and shoppers reporting unit and the comparable companies selected.  We base our fair value estimates on various assumptions about our projected operating results, including continuing declines in publishing revenues as well as an expectation that we will achieve cash flow benefits from our continuing cost cutting measures.  The valuation methodology used to estimate the fair value of our reporting unit requires inputs and assumptions (i.e., market growth, operating cash flow margins and discount rates) that reflect current market conditions as well as management judgment.  These assumptions may change due to changes in market conditions and such changes may result in an impairment of our goodwill.

We based the valuation of goodwill related to our community newspapers and shoppers reporting unit on our internal projections and industry-based assumptions:

	September 24, 2012			September 26, 2011			September 27, 2010
Discount rate		12.0	%		13.5	%		13.5	%
Tax rate		39.0			39.0			39.0
Long-term growth rate		(1.5	)		-			-

As of December 30, 2012, if we were to increase the discount rates by 200.0 basis points or decrease the long-term growth rates by 100.0 basis points, step two of the goodwill impairment test would not be triggered.  

Results of Operations

2012 (53 weeks) Compared to 2011 (52 weeks)

The 2012 results include the operations of a television station whose assets were acquired on December 6, 2012. Also, 2012 contained 53 weeks compared to 52 weeks in 2011. Although it is difficult to precisely quantify the impact of the additional week, we estimate the revenue impact to be $6.0 million and the operating earnings impact to be $1.2 million.

Our consolidated revenue in 2012 was $400.0 million, an increase of $43.2 million, or 12.1%, compared to $356.8 million in 2011.  Our consolidated operating costs and expenses in 2012 were $208.3 million, an increase of $6.7 million, or 3.3%, compared to $201.6 million in 2011.  Our consolidated selling and administrative expenses in 2012 were $130.0 million, an increase of $15.5 million, or 13.6%, compared to $114.5 million in 2011.  We recorded a $1.7 million non-cash broadcast license impairment charge in 2012 and a $0.9 million non-cash broadcast license impairment charge in 2011.

The following table presents our total revenue by segment, total operating costs and expenses, selling and administrative expenses, broadcast license impairment and total operating earnings as a percent of total revenue for 2012 and 2011:

				Percent of						Percent of
				Total						Total
	2012			Revenue			2011			Revenue
	(dollars in millions)
Revenue:
Broadcasting	$	235.6			58.9	%	$	186.1			52.2	%
Publishing		164.9			41.2			171.0			47.9
Corporate eliminations		(0.5	)		(0.1	)		(0.3	)		(0.1	)
Total revenue		400.0			100.0			356.8			100.0
Total operating costs and expenses		208.3			52.1			201.6			56.5
Selling and administrative expense		130.0			32.5			114.5			32.1
Broadcast license impairment		1.7			0.4			0.9			0.3
Total operating costs and expenses and selling and administrative expenses		340.0			85.0			317.0			88.9
Total operating earnings	$	60.0			15.0	%	$	39.8			11.1	%

At our broadcasting businesses, advertising revenue increased in 2012 compared to 2011 primarily due to a $31.6 million increase in political and issue advertising revenue, a $6.8 million increase in local advertising revenue, a $5.4 million increase in national advertising revenue, a $2.7 million increase in Olympic advertising revenue, a $2.3 million increase in retransmission revenue, and a $0.7 million increase in other revenue. Automotive advertising increased $6.8 million in 2012 compared to 2011.

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Our publishing businesses experienced a 5.2% decrease in retail advertising revenue in 2012 compared to 2011.  The retail advertising revenue decrease was a result of decreases in the department store, telecommunications, and building categories and as a result of the sale of the Florida-based community newspapers and shoppers in 2011, partially offset by the increase in retail ROP from special programs and initiatives.  Classified advertising revenue decreased 17.2% in 2012 compared to 2011 primarily due to decreases in the automotive and employment categories, combined with the year-over-year decline from the sale of the Florida-based community newspapers and shoppers in 2011.  Partially offsetting these revenue decreases was a 2.7% increase in circulation revenue and a 9.8% increase in commercial printing at our daily newspaper in 2012 compared to 2011. Circulation revenue increased $1.3 million in 2012 compared to 2011.  At our daily newspaper, commercial delivery revenue decreased in 2012 by $0.1 million compared to 2011. Commercial printing revenue at our daily newspapers increased $0.9 million in 2012 compared to 2011, driven by increased volume and one large new customer.

The increase in total operating costs and expenses in 2012 compared to 2011 was primarily due to increases in employee-related expenses and network affiliation fees, partially offset by a decrease in newsprint and paper costs. The increase in selling and administrative expenses was primarily due to employee-related expenses, acquisition and integration-related costs, impairment of broadcast licenses, impairment of long-lived assets and workforce reduction charges primarily in our publishing group.

Our consolidated operating earnings were $60.0 million in 2012, an increase of $20.2 million, or 50.8%, compared to $39.8 million in 2011.  The following table presents our operating earnings (loss) by segment for 2012 and 2011:

	2012			2011
	(dollars in millions)
Broadcasting	$	56.2		$	31.0
Publishing		11.6			15.9
Corporate		(7.8	)		(7.1	)
Total operating earnings	$	60.0		$	39.8

The increase in total operating earnings was primarily due to the increase in revenue at our broadcasting business, partially offset by the decrease in revenue at our publishing business, an increase in operating costs and expenses and selling and administrative expenses, and an increase in non-cash broadcast license impairment charges.

EBITDA in 2012 was $82.9 million, an increase of $19.5 million, or 30.6%, compared to $63.4 million in 2011. We define EBITDA as net earnings excluding provision for income taxes, total other expense, net (which is comprised of interest income and expense), depreciation and amortization.  Management primarily uses EBITDA, among other things, to evaluate our operating performance compared to our operating plans and/or prior years and to value prospective acquisitions.  We believe the presentation of this measure is relevant and useful for investors because it allows investors to view performance in a manner similar to the method used by management, helps to improve their ability to understand our operating performance and makes it easier to compare our results with other companies that have different financing and capital structures or tax rates.  EBITDA is also a primary measure used externally by our investors and our peers in our industry for purposes of valuation and comparing our operating performance to other companies in the industry.  EBITDA is not a measure of performance or liquidity calculated in accordance with accounting principles generally accepted in the United States.  EBITDA should not be considered in isolation of, or as a substitute for, net earnings as an indicator of operating performance or cash flows from operating activities as a measure of liquidity.  EBITDA, as we calculate it, may not be comparable to EBITDA measures reported by other companies.

The following table presents a reconciliation of our consolidated net earnings to EBITDA for 2012 and 2011:

	2012		2011
	(dollars in millions)
Net earnings(1)	$	33.3	$	22.1
Provision for income taxes		22.2		14.4
Total other expense, net		4.5		3.5
Depreciation		21.1		21.8
Amortization		1.8		1.6
EBITDA	$	82.9	$	63.4

(1) Included in net earnings for 2012 are pre-tax charges for impairment of long-lived assets, impairment of intangible assets, acquisition and integration related costs, and workforce reduction charges of $0.5 million, $1.7 million, $3.1 million, and $1.7 million, respectively.  Included in net earnings 2011 are pre-tax charges of for impairment of intangible assets and workforce reductions charges of $0.9 million and $1.7 million, respectively, and $0.6 million pre-tax operating earnings related to the sold Florida-based community newspapers and shoppers.

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The increase in our EBITDA was consistent with the increase in our operating earnings for the reasons described above.

Broadcasting

Revenue from broadcasting in 2012 was $235.6 million, an increase of $49.5 million, or 26.6%, compared to $186.1 million in 2011.  Operating earnings from broadcasting in 2012 were $56.2 million, an increase of $25.2 million, or 81.4%, compared to $31.0 million in 2011.  We recorded a $1.7 million non-cash broadcast license impairment charge in 2012 and a $0.9 million non-cash broadcast license impairment charge in 2011.

The following table presents our broadcasting revenue and operating earnings for 2012 and 2011:

	2012						2011						Percent
	Television		Radio		Total		Television		Radio		Total		Change
	(dollars in millions)
Revenue	$	159.4	$	76.2	$	235.6	$	115.7	$	70.4	$	186.1		26.6	%
Operating earnings	$	42.3	$	13.9	$	56.2	$	15.9	$	15.1	$	31.0		81.4	%

Revenue from our television stations in 2012 was $159.4 million, an increase of $43.7 million, or 37.7%, compared to $115.7 million in 2011.  We experienced revenue increases in all of our nine existing television markets.  Compared to 2011, political and issue advertising revenue increased $30.7 million, or 750.7%; and national advertising revenue increased $5.0 million, or 22.3%; retransmission revenue increased $2.3 million, or 27.4%; local advertising revenue increased $2.2 million, or 2.8%; other revenue increased $0.8 million, or 42.8%; and Olympic revenue increased $2.7 million.  Political and issue advertising revenue increased in 2012 compared to 2011 primarily due to the political activity in Wisconsin and Nevada.  Television advertising revenue and rates in even-numbered years typically benefit from political and issue advertising because there tends to be more pressure on available inventory as the demand for advertising increases and we have the opportunity to increase the average unit rates we charge our customers.

Our television stations experienced revenue increases in a number of categories, specifically political, automotive, media and financial, partially offset by decreases in the home products, supermarkets and communications retail categories.  Automotive advertising revenue represented 15.9% of television advertising revenue in 2012 compared to 17.4% in 2011.  Automotive advertising revenue was $25.4 million in 2012, an increase of $5.3 million, or 26.2%, compared to $20.1 million in 2011.  Our television stations are working to grow their local customer base by creating new local content and programs that combine television with digital platforms.  Digital revenue was $2.2 million in 2012 compared to $1.9 million in 2011.  Digital revenue is reported in local advertising revenue.

Operating earnings from our television stations in 2012 were $42.3 million, an increase of $26.4 million, or 165.0%, compared to $15.9 million in 2011.  The increase in operating earnings was primarily due to the impact from the increase in advertising revenue.  Total television expenses in 2012 increased $17.3 million, or 17.4%, compared to 2011 primarily due to an increase in employee-related expenses, sales commissions, network programming expenses, acquisition and integration-related costs, and expenses related to the new Green Bay Packers preseason network agreement.  Throughout 2012, we selectively added back expense to invest in our employees, programming, and promotion of our products.

Revenue from our radio stations in 2012 was $76.2 million, an increase of $5.8 million, or 8.4%, compared to $70.4 million in 2011.  We experienced revenue increases in seven of our eight radio markets.  Compared to 2011, local advertising revenue increased $4.5 million, or 7.6%; political and issue advertising revenue increased $0.9 million, or 116.3%; and national advertising revenue increased $0.4 million, or 6.4%.

Our radio stations experienced revenue increases in a number of categories, specifically automotive, political, casino and gambling, retail and entertainment, partially offset by decreases in the medical, media, building and hardware, and communications categories.  Automotive advertising represented 15.3% of radio advertising revenue in 2012 compared to 14.4% in 2011.  Automotive advertising revenue was $11.6 million in 2012, an increase of $1.5 million, or 14.8%, compared to $10.1 million in 2011.  Our radio stations are working to grow their local customer base by creating new local content and programs that combine radio with digital platforms.  Digital revenue was $2.2 million in 2012 compared to $1.8 million in 2011.  Digital revenue is reported in local advertising revenue.

Operating earnings from our radio stations in 2012 were $13.9 million, a decrease of $1.2 million, or 7.3%, compared to $15.1 million in 2011.  The decrease in operating earnings was primarily due to an increase in total expenses.  Total radio expenses increased $7.0 million, or 12.6%, in 2012 compared to 2011 primarily due to increases in employee-related expenses, impairment of broadcast licenses, impairment of long-lived assets, and acquisition and integration-related expenses, partially offset by credits related to our radio music license fees.  Throughout 2012, we selectively added back expense to invest in our employees, programming, and promotion of our products.

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Publishing

Revenue from publishing in 2012 was $164.9 million, a decrease of $6.1 million, or 3.5%, compared to $171.0 million in 2011.  Operating earnings from publishing were $11.6 million in 2012, a decrease of $4.3 million, or 26.9%, compared to $15.9 million in 2011.

The following table presents our publishing revenue by category and operating earnings for 2012 and 2011:

	2012						2011
			Community						Community
	Daily		Newspapers				Daily		Newspapers				Percent
	Newspaper		& Shoppers		Total		Newspaper		& Shoppers		Total		Change
	(dollars in millions)
Advertising revenue:
Retail	$	56.6	$	13.5	$	70.1	$	56.7	$	17.2	$	73.9		(5.2	) %
Classified		14.0		2.7		16.7		16.8		3.4		20.2		(17.2	)
National		3.3		-		3.3		4.5		-		4.5		(25.5	)
Direct Marketing		0.1		-		0.1		0.1		-		0.1		(56.0	)
Total advertising revenue		74.0		16.2		90.2		78.1		20.6		98.7		(8.7	)
Circulation revenue		51.2		1.8		53.0		49.9		1.8		51.7		2.7
Other revenue		18.3		3.4		21.7		17.4		3.2		20.6		5.5
Total revenue	$	143.5	$	21.4	$	164.9	$	145.4	$	25.6	$	171.0		(3.5	) %
Operating earnings	$	11.0	$	0.6	$	11.6	$	14.3	$	1.6	$	15.9		(26.9	) %

Advertising revenue accounted for 54.7% of total publishing revenue in 2012 compared to 57.7% in 2011.  The ongoing secular changes in the newspaper industry and the current economic environment have caused advertisers to decrease their advertising spending across most of our advertising revenue categories.  In addition, due to the changing mix of revenue categories, changes in frequency and placement of advertising in the newspaper and planned advertising rate decreases in order to increase volume, we continued to see decreases in the average rate per inch of advertising in 2012.

Retail advertising revenue in 2012 was $70.1 million, a decrease of $3.8 million, or 5.2%, compared to $73.9 million in 2011.  The $0.1 million decrease in retail advertising revenue at our daily newspaper was primarily due to a decrease in preprint advertising at the daily newspaper from the department store, telecommunications, and building categories, partially offset by the increase in digital retail.  We continue to believe consumers are still cautious in regards to spending discretionary income and advertisers are still decreasing their spending in traditional print products, including our daily newspaper.  These trends persisted in our community newspapers and shoppers business.  The $3.7 million decrease in retail advertising revenue at our community newspapers and shoppers business was primarily due to revenue decreases as a result of the sale of the Florida-based publications in 2011 and, to a lesser extent, the sale of our northern Wisconsin community newspapers and shoppers publications in the fourth quarter of 2012.  The sale of the Florida-based community newspapers and shoppers accounted for $2.8 million of the year-over-year decline.

Classified advertising is generally the most sensitive to economic cycles because it is driven by the demand of employment, automotive sales and real estate transactions.  As a result of the ongoing secular trend of classified advertising transitioning to the Internet and the current economic environment, our publishing businesses experienced a decrease in ROP classified advertising revenue in 2012 compared to 2011.  Classified advertising revenue in 2012 was $16.7 million, a decrease of $3.5 million, or 17.2%, compared to $20.2 million in 2011.  At our daily newspaper, classified advertising revenue decreased $2.8 million, or 16.5%, in 2012 compared to 2011.  The revenue decreases were led by the employment and automotive categories, which in the aggregate decreased $2.2 million, or 25.8%. At our community newspapers and shoppers business, classified advertising revenue decreased $0.7 million, or 20.8%, in 2012 compared to 2011 primarily due to continued softness in the classified categories and decreases as a result of the sale of the Florida-based community newspapers and shoppers businesses in the second and third quarters of 2011, and, to a lesser extent, the sale of our northern Wisconsin community newspapers and shoppers publications in the fourth quarter of 2012.

The total decrease in retail and classified automotive advertising revenue at our daily newspaper in 2012 was $0.6 million, or 13.5%, compared to 2011 primarily due to a decrease in classified ROP advertising revenue, partially offset by an increase in retail ROP advertising revenue.

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Total retail and classified digital advertising revenue at our daily newspaper was $12.3 million in 2012, an increase of $1.0 million, or 9.3%, compared to $11.3 million in 2012.  Digital retail advertising revenue increased 26.1% compared to 2011 due to increases in sponsorships and other digital revenue.  Digital classified advertising revenue decreased 17.7% compared to 2011 due to decreases in classified upsells and packages sold.  Digital advertising revenue is reported in the retail and classified advertising revenue categories.

National advertising revenue was $3.3 million in 2012, a decrease of $1.2 million, or 25.5%, compared to $4.5 million in 2011.  The decrease was primarily due to a decrease in ROP and preprint advertising in the furniture and business services categories.

Circulation revenue accounted for 32.2% of total publishing revenue in 2012 compared to 30.2% in 2011.  Circulation revenue was $53.0 million in 2012, an increase of $1.3 million, or 2.7%, compared to $51.7 million in 2011.  At our daily newspaper, circulation revenue increased $1.3 million, or 2.7%, primarily due to a price increase implemented with our “JS Everywhere” subscription program, partially offset by comparisons to 2011 when the Green Bay Packers were in the Super Bowl and we experienced increased single copy sales.  The new JS Everywhere program provides newspaper and digital subscribers access to the new iPad app, mobile phone app and access to jsonline.com.  At our community newspapers and shoppers business, circulation revenue remained consistent at $1.8 million in 2012 and 2011.

Other revenue, which consists of revenue from commercial printing, commercial distribution and promotional revenue at our daily newspaper and commercial printing at the printing plant of our community newspapers and shoppers, accounted for 13.2% of total publishing revenue in 2012 compared to 12.1% in 2011.  Other revenue was $21.7 million in 2012, an increase of $1.1 million, or 5.5%, compared to $20.6 million in 2011.  The $0.9 million increase at our daily newspaper was primarily due to an increase in commercial printing revenue driven by increased volume and one large new customer.  At our community newspapers and shoppers business, other revenue was $3.4 million in 2012, an increase of $0.2 million, or 7.0%, compared to $3.2 million in 2011.

Publishing operating earnings in 2012 were $11.6 million, a decrease of $4.3 million, or 26.9%, compared to $15.9 million in 2011.  The decrease in operating earnings was primarily due to the impact of the decrease in advertising revenue.  In an effort to partially offset the impact of the decrease in advertising revenue, our publishing businesses continue to reduce their expense platforms.  Total expenses decreased $1.8 million, or 1.1%, in 2012 compared to 2011, primarily due to a decrease in employee related costs and a decrease in costs due to revenue declines.  Total newsprint and paper costs for our publishing businesses in 2012 were $16.9 million, an increase of $0.1 million, or 0.6%, compared to $16.8 million in 2011 due to a 0.4% increase in average newsprint pricing per metric ton, partially offset by a 0.2% decrease in newsprint consumption.

Corporate

The corporate segment reflects the unallocated costs of our corporate executive management, as well as expenses related to corporate governance.  Revenue and expense eliminations were $0.5 million in 2012 compared to $0.3 million in 2011.  The unallocated expenses were $7.8 million in 2012, an increase of $0.7 million compared to $7.1 million in 2011.  The increase was primarily due to an increase in our executive incentive compensation expense.

Other Income and Expense and Taxes

Interest income was minimal in 2012 and 2011.  Interest expense was $4.5 million in 2012 compared to $3.6 million in 2011.  The increase in interest expense was due to the interest on the unsecured promissory notes issued during the third quarter of 2012 in connection with our repurchase of all outstanding class C shares, and the increase in long-term notes payable to banks resulting from our acquisition of WTVF-TV in Nashville. Amortization of deferred financing costs, which is reported in interest expense, was $1.8 million in 2012, an increase of $0.7 million, compared to $1.1 million in 2011.

Our effective tax rate was 40.0% in 2012 compared to 39.8% in 2011.

Discontinued Operations

There were no discontinued operations during 2012. Earnings from discontinued operations, net of income tax expense of $0.2 million, were $0.3 million in 2011.

During 2005, Multi-Color Corporation (Multi-Color) acquired substantially all of the assets and certain liabilities of NorthStar Print Group, Inc. (NorthStar), our former label printing business.  Certain liabilities were excluded from the sale of NorthStar and primarily consisted of environmental site closure costs for both the Green Bay, Wisconsin real estate and real estate located in Norway, Michigan.  In January 2011, upon environmental site closure in Green Bay, Wisconsin, we sold the real estate holdings to Multi-Color according to the 2005 sale agreement.  The net proceeds were $0.8 million and we recorded a pre-tax gain of $0.6 million.  We continue to have environmental site closure obligations with respect to the Norway, Michigan real estate, which was sold to Multi-Color in 2005.

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Net Earnings

Our net earnings in 2012 were $33.3 million, an increase of $11.2 million, or 50.2%, compared to $22.1 million in 2011.  The increase was due to the increase in operating earnings from continuing operations for the reasons described above, partially offset by the increase in interest expense and increase in the provision for income taxes.

Earnings per Share for Class A and B Common Stock

In 2012, basic and diluted net earnings per share of class A and B common stock were $0.61 for both.  This compared to $0.37 for both in 2011.  Basic and diluted earnings per share of class A and B common stock from continuing operations were $0.61 for both in 2012.  This compared to $0.36 for both in 2011.  There were no basic and diluted earnings per share from discontinued operations in 2012.  Basic and diluted earnings per share of class A and B common stock from discontinued operations were $0.01 for both in 2011.

2011 Compared to 2010

Our consolidated revenue in 2011 was $356.8 million, a decrease of $20.0 million, or 5.3%, compared to $376.8 million in 2010.  Our consolidated operating costs and expenses in 2011 were $201.6 million, a decrease of $6.1 million, or 2.9%, compared to $207.7 million in 2010.  Our consolidated selling and administrative expenses in 2011 were $114.5 million, a decrease of $1.6 million, or 1.4%, compared to $116.1 million in 2010.  We recorded a $0.9 million non-cash broadcast license impairment charge in 2011 and a $1.8 million property impairment charge in 2010.

The following table presents our total revenue by segment, total operating costs and expenses, selling and administrative expenses, broadcast license impairment and total operating earnings as a percent of total revenue for 2011 and 2010:

				Percent of						Percent of
				Total						Total
	2011			Revenue			2010			Revenue
	(dollars in millions)
Revenue:
Broadcasting	$	186.1			52.2	%	$	194.4			51.6	%
Publishing		171.0			47.9			182.8			48.5
Corporate eliminations		(0.3	)		(0.1	)		(0.4	)		(0.1	)
Total revenue		356.8			100.0			376.8			100.0
Total operating costs and expenses		201.6			56.5			207.7			55.1
Selling and administrative expense		114.5			32.1			116.1			30.8
		0.9			0.3			-			-
Total operating costs and expenses and selling and administrative expenses		317.0			88.9			323.8			85.9
Total operating earnings	$	39.8			11.1	%	$	53.0			14.1	%

At our broadcasting businesses, advertising revenue decreased in 2011 compared to 2010 primarily due to decreases in political and issue advertising revenue, the absence of Olympic advertising revenue and a decrease in national advertising revenue, partially offset by an increase in local advertising revenue and an increase in retransmission revenue.  Political and issue advertising revenue decreased $11.9 million as 2011 was considered a non-political and issue advertising year.  Automotive advertising increased $0.6 million in 2011 compared to 2010.

Our publishing businesses experienced an 8.9% decrease in retail advertising revenue in 2011 compared to 2010 primarily in consumer-driven categories.  The retail advertising revenue decreases were in the communications, home improvement, furniture, automotive and finance categories.  Classified advertising revenue decreased 16.9% in 2011 compared to 2010 primarily due to decreases in the real estate, other and automotive categories.  Partially offsetting these revenue decreases was a 12.9% increase in commercial delivery revenue and a 4.2% increase in online advertising revenue at our daily newspaper in 2011 compared to 2010.

The decrease in total operating costs and expenses in 2011 compared to 2010 was primarily due to a decrease in employee related costs reflecting the savings from workforce reduction initiatives implemented in 2010, the decrease in revenue and a decrease in syndicated programming expenses.  The decrease was partially offset by an increase in delivery fees for our re-launched, mail-based total market coverage product and increases in sports broadcast rights fees and network programming fees.  The decrease in selling and administrative expenses was primarily due to a property impairment charge in 2010, a decrease in executive incentive compensation due to the decrease in operating earnings and a decrease in third party commission expenses.  These expense decreases were partially offset by an increase in employee related costs and an increase in promotional expenses.

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Our consolidated operating earnings were $39.8 million in 2011, a decrease of $13.2 million, or 25.0%, compared to $53.0 million in 2010.  The following table presents our operating earnings (loss) by segment for 2011 and 2010:

	2011			2010
	(dollars in millions)
Broadcasting	$	31.0		$	43.6
Publishing		15.9			18.2
Corporate		(7.1	)		(8.8	)
Total operating earnings	$	39.8		$	53.0

The decrease in total operating earnings was primarily due to the decrease in revenue at our publishing and broadcasting businesses and the non-cash broadcast license impairment charge, partiallly offset by the decrease in operating costs and expenses and selling and administrative expenses.

EBITDA in 2011 was $63.4 million, a decrease of $18.0 million, or 22.0%, compared to $81.4 million in 2010.  We define EBITDA as net earnings (loss) excluding provision (benefit) for income taxes, total other expense, net (which is entirely comprised of interest income and expense), depreciation and amortization.

The following table presents a reconciliation of our consolidated net earnings to EBITDA for 2011 and 2010:

	2011		2010
	(dollars in millions)
Net earnings	$	22.1	$	34.4
Provision for income taxes		14.4		19.1
Total other expense, net		3.5		3.3
Depreciation		21.8		22.7
Amortization		1.6		1.9
EBITDA	$	63.4	$	81.4

The decrease in our EBITDA was consistent with the decrease in our operating earnings for the reasons described above.

Broadcasting

Revenue from broadcasting in 2011 was $186.1 million, a decrease of $8.3 million, or 4.3%, compared to $194.4 million in 2010.  Operating earnings from broadcasting in 2011 were $31.0 million, a decrease of $12.6 million, or 28.8%, compared to $43.6 million in 2010.  We recorded a $0.9 million non-cash broadcast license impairment charge in 2011 and a $1.8 million property impairment charge in 2010.

The following table presents our broadcasting revenue and operating earnings for 2011 and 2010:

	2011						2010						Percent
	Television		Radio		Total		Television		Radio		Total		Change
	(dollars in millions)
Revenue	$	115.7	$	70.4	$	186.1	$	125.1	$	69.3	$	194.4		(4.3	) %
Operating earnings	$	15.9	$	15.1	$	31.0	$	29.1	$	14.5	$	43.6		(28.8	) %

Revenue from our television stations in 2011 was $115.7 million, a decrease of $9.4 million, or 7.5%, compared to $125.1 million in 2010.  We experienced revenue decreases in four of our nine television markets.  There was no Olympic advertising revenue in 2011.  Olympic advertising revenue was $2.2 million in 2010.  Compared to 2010, political and issue advertising revenue decreased $11.3 million, or 73.4% and national advertising revenue decreased $1.2 million, or 5.5%, primarily due to a decrease in automotive advertising revenue.  Partially offsetting these revenue decreases, local advertising revenue increased $3.0 million, or 4.0%, and retransmission revenue increased $2.1 million, or 33.2%.  Local advertising revenue increased due to an increase in local inventory availability (due to 2011 being a non-political broadcast year) and an increase in digital advertising revenue.  Political and issue advertising revenue decreased in 2011 as 2011 was considered a non-political and issue advertising year, which also contributed to an increase in local inventory availability.  Television advertising revenue and rates in even-numbered years typically benefit from political and issue advertising because there tends to be more pressure on available inventory as the demand for advertising increases and we have the opportunity to increase the average unit rates we charge our customers.

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Our television stations experienced revenue decreases in a number of categories, specifically financial, packaged goods, automotive, home improvement and beverages, partially offset by increases in the medical, media, education, casino and gambling and retail categories.  Automotive advertising revenue represented 17.4% of television advertising revenue in 2011 compared to 16.3% in 2010.  Automotive advertising revenue was $20.1 million in 2011, a decrease of $0.3 million, or 1.3%, compared to $20.4 million in 2010.  Digital revenue was $1.9 million in 2011, an increase of $0.4 million, or 27.6%, compared to $1.5 million in 2010.  Digital revenue is reported in local advertising revenue.

Operating earnings from our television stations in 2011 were $15.9 million, a decrease of $13.2 million, or 45.1%, compared to $29.1 million in 2010.  The decrease in operating earnings was primarily due to the impact from the decrease in political, Olympic and issue advertising revenue and an increase in expenses.  Total television expenses in 2011 increased $3.8 million, or 3.9%, compared to 2010 primarily due to an increase in employee-related costs, the non-cash broadcast license impairment charge and increases in network programming fees, professional services fees, promotional expenses and expenses related to expanded news coverage of the Green Bay Packers and the Wisconsin political battles.  Throughout 2011, we selectively added back expense to invest in our employees, programming and promotion of our products.

Revenue from our radio stations in 2011 was $70.4 million, an increase of $1.1 million, or 1.6%, compared to $69.3 million in 2010.  We experienced revenue increases in three of our eight radio markets.  Compared to 2010, national advertising revenue increased $1.0 million, or 18.4%, primarily due to an increase in automotive advertising revenue; local advertising revenue increased $0.5 million, or 0.8%; and other revenue increased $0.2 million, or 6.5%.  Partially offsetting these revenue increases, political and issue advertising revenue decreased $0.6 million, or 42.4%, in 2011 compared to 2010.

Our radio stations experienced revenue increases in a number of categories, specifically media, automotive, financial, professional services and home products, partially offset by decreases in the entertainment, other services, medical and legal categories.  Automotive advertising represented 14.4% of radio advertising revenue in 2011 compared to 13.3% in 2010.  Automotive advertising revenue was $10.1 million in 2011, an increase of $0.9 million, or 9.8%, compared to $9.2 million in 2010.  Digital revenue was $1.8 million in 2011, an increase of $0.2 million, or 13.1%, compared to $1.6 million 2010.  Digital revenue is reported in local advertising revenue.

Operating earnings from our radio stations in 2011 were $15.1 million, an increase of $0.6 million, or 3.7%, compared to $14.5 million in 2010.  The increase in operating earnings was primarily due to an increase in advertising revenue.  Total radio expenses increased $0.5 million, or 1.0%, in 2011 compared to 2010 primarily due to increases in employee related costs, sports broadcast rights fees, audience promotion expenses and an increase in professional services fees, partially offset by the 2010 property impairment charge.  Throughout 2011, we selectively added back expense to invest in our employees, programming, and promotion of our products.

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Publishing

Revenue from publishing in 2011 was $171.0 million, a decrease of $11.8 million, or 6.5%, compared to $182.8 million in 2010.  Operating earnings from publishing were $15.9 million in 2011, a decrease of $2.3 million, or 12.7%, compared to $18.2 million in 2010.

The following table presents our publishing revenue by category and operating earnings for 2011 and 2010:

	2011						2010
			Community						Community
	Daily		Newspapers				Daily		Newspapers				Percent
	Newspaper		& Shoppers		Total		Newspaper		& Shoppers		Total		Change
	(dollars in millions)
Advertising revenue:
Retail	$	56.7	$	17.2	$	73.9	$	60.0	$	21.2	$	81.2		(8.9	) %
Classified		16.8		3.4		20.2		19.9		4.4		24.3		(16.9	)
National		4.5		-		4.5		5.0		-		5.0		(11.2	)
Direct Marketing		0.1		-		0.1		0.2		-		0.2		(40.8	)
Total advertising revenue		78.1		20.6		98.6		85.1		25.6		110.5		(10.8	)
Circulation revenue		49.9		1.8		51.7		50.1		1.9		52.0		(0.6	)
Other revenue		17.4		3.2		20.6		17.1		3.0		20.1		2.5
Total revenue	$	145.4	$	25.6	$	170.9	$	152.3	$	30.5	$	182.6		(6.5	) %
Operating earnings	$	14.3	$	1.6	$	15.9	$	15.9	$	2.3	$	18.2		(12.7	) %

Advertising revenue accounted for 57.7% of total publishing revenue in 2011 compared to 60.6% in 2010.  The ongoing secular changes in the newspaper industry and the current economic environment have caused advertisers to decrease their advertising spending across most of our advertising revenue categories.  In addition, due to the changing mix of revenue categories, changes in frequency and placement of advertising in the newspaper and planned advertising rate decreases in order to increase volume, we continued to see decreases in the average rate per inch of advertising in 2011.

Retail advertising revenue in 2011 was $73.9 million, a decrease of $7.3 million, or 8.9%, compared to $81.2 million in 2010.  The $3.3 million decrease in retail advertising revenue at our daily newspaper was primarily due to decreases in ROP and preprint advertising revenue and the discontinuation of the specialty magazine, Milwaukee Home and Fine Living, partially offset by an increase in retail online advertising revenue.  The revenue decreases were in the communications, home improvement, furniture, automotive and finance categories.  We believe consumers are still cautious in regards to spending discretionary income and advertisers are still decreasing their spending in traditional print products, including our daily newspaper.  The same trends persisted in our community newspapers and shoppers business.  The $4.0 million decrease in retail advertising revenue at our community newspapers and shoppers business was primarily due to revenue decreases as a result of the sale of the Florida-based publications in 2011 and a decrease from publications we decided to exit, and decreases in automotive, retail and real estate advertising.

Classified advertising is generally the most sensitive to economic cycles because it is driven by the demand of employment, real estate transactions and automotive sales.  As a result of the ongoing secular trend of classified advertising transitioning to the Internet and the current economic environment, our publishing businesses experienced a decrease in ROP classified advertising revenue in 2011 compared to 2010, partially offset by an increase in classified online advertising revenue.  Classified advertising revenue in 2011 was $20.2 million, a decrease of $4.1 million, or 16.9%, compared to $24.3 million in 2010.  At our daily newspaper, classified advertising revenue decreased $3.1 million, or 15.7%, in 2011 compared to 2010.  The decrease was led by the real estate category, which decreased $1.4 million, or 35.6%.  The lack of a recovery in the Milwaukee area housing market and the decrease in real estate advertisers placing advertisements in our products continues to affect us.  Additionally, the other category decreased $0.7 million, or 11.8%; the automotive category decreased $0.6 million, or 14.0%; and the employment category decreased $0.4 million, or 7.3%, compared to 2010.  The average rate per inch of classified advertising decreased in 2011 compared to 2010 primarily due to the planned decrease in rates for employment classified revenue in an effort to increase volume.  We believe this strategy was successful as we experienced a 12.7% increase in volume for employment classified advertising in 2011 compared to 2010.  Historically, rates for employment classified advertising have been higher than other classified advertising categories.  Average rates per inch for real estate and automotive advertising revenue also decreased compared to 2010, partially due to our planned decrease in rates for real estate classified advertising revenue.  We have not experienced the same level of success from our strategy to increase volume by decreasing rates for real estate classified advertising revenue.  At our community newspapers and shoppers business, classified advertising revenue decreased $1.0 million, or 22.2%, in 2011 compared to 2010 primarily due to revenue decreases as a result of the sale of the Florida-based publications in 2011, a decrease from publications we decided to exit, and decreases in automotive, employment and real estate classified advertising revenue.

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The total decrease in retail and classified automotive advertising revenue at our daily newspaper in 2011 was $1.1 million, or 20.2%, compared to 2010 primarily due to a decrease in ROP advertising revenue.

Total retail and classified digital advertising revenue at our daily newspaper was $11.3 million in 2011, an increase of $0.5 million, or 4.2%, compared to $10.8 million in 2010.  Digital retail advertising revenue increased 5.3% compared to 2010 due to an increase in sponsorships sold.  Digital classified advertising revenue increased 2.6% compared to 2010 due to an increase in classified upsells.  Digital advertising revenue is reported in the retail and classified advertising revenue categories.

National advertising revenue was $4.5 million in 2011, a decrease of $0.5 million, or 11.2%, compared to $5.0 million in 2010.  The decrease was primarily due to a decrease in ROP and preprint advertising revenue in the communications, health services, finance and dining and entertainment categories, partially offset by an increase in the business services category.

Direct marketing revenue, consisting of revenue from the sale of direct mail products of our daily newspaper, was $0.1 million in 2011 compared to $0.2 million in 2010.

Circulation revenue accounted for 30.2% of total publishing revenue in 2011 compared to 28.4% in 2010.  Circulation revenue was $51.7 million in 2011, a decrease of $0.3 million, or 0.6%, compared to $52.0 million in 2010.  At our daily newspaper, circulation revenue decreased $0.2 million, or 0.4%, primarily due to a decrease in subscriber revenue for our specialty magazines and publications and a decrease in revenue from the daily edition due to the rate impact of the “Big Wednesday” program.  This decrease was partially offset by an increase in revenue from the Sunday edition due to a price increase for home delivery.  In early 2011, our daily newspaper launched a program titled “Big Wednesday” in which Sunday-only subscribers receive the Wednesday edition of the daily newspaper as part of their existing Sunday-only subscription.  We believe this program will help our advertisers reach a larger mid-week audience.  At our community newspapers and shoppers business, circulation revenue was $1.8 million in 2011 compared to $1.9 million in 2010.

Other revenue, which consists of revenue from commercial printing, commercial distribution and promotional revenue at our daily newspaper and commercial printing at the printing plants for our community newspapers and shoppers, accounted for 12.1% of total publishing revenue in 2011 compared to 11.0% in 2010.  Other revenue was $20.6 million in 2011, an increase of $0.5 million, or 2.5%, compared to $20.1 million in 2010.  The $0.3 million increase at our daily newspaper was primarily due to an increase in commercial delivery revenue as we continue to expand our distribution of other newspapers, partially offset by a decrease in commercial printing revenue from a decrease in the number of pages printed and contract renegotiations.  At our community newspapers and shoppers business, other revenue was $3.2 million in 2011, an increase of $0.2 million, or 6.8%, compared to $3.0 million in 2010 primarily due to an increase in business from new customers.

Publishing operating earnings in 2011 were $15.9 million, a decrease of $2.3 million, or 12.7%, compared to $18.2 million in 2010.  The decrease in operating earnings was primarily due to the impact of the decrease in advertising revenue.  In an effort to partially offset the impact of the decrease in advertising revenue, our publishing businesses continue to reduce their expense platforms.  Total expenses decreased $9.5 million, or 5.8%, in 2011 compared to 2010 primarily due to a decrease in employee related costs, a decrease in costs due to revenue declines, a charge in 2010 for the withdrawal from a multiemployer pension plan and the pre-tax gain on the sales of the Florida-based community newspapers and shoppers businesses.  These expense decreases were partially offset by an increase in delivery costs for our total market coverage product (which was re-launched as a mail-based product in the fourth quarter of 2010) and an increase in our commercial delivery costs due to our expanded distribution of other newspapers.  Total newsprint and paper costs for our publishing businesses in 2011 were $16.9 million, a decrease of $0.4 million, or 2.5%, compared to $17.3 million in 2010 due to a 4.6% decrease in newsprint consumption from a decrease in advertising pages, partially offset by a 3.2% increase in average newsprint pricing per metric ton.

Corporate

The corporate segment reflects the unallocated costs of our corporate executive management, as well as expenses related to corporate governance.  Revenue and expense eliminations were $0.3 million in 2011 compared to $0.4 million in 2010.  The unallocated expenses were $7.1 million in 2011, a decrease of $1.7 million compared to $8.8 million in 2010.  The decrease was primarily due to a decrease in our executive incentive compensation expense and a decrease in costs with respect to real estate of our former label printing business, which we sold in 2005.

Other Income and Expense and Taxes

Interest income was $0.1 million in both 2011 and 2010.  Interest expense was $3.6 million in 2011 compared to $3.4 million in 2010.  The increase in interest expense was due to the increase in average borrowing rates under our amended and extended credit agreement entered into on August 13, 2010, partially offset by the decrease in average borrowings.  Amortization of deferred financing costs, which is reported in interest expense, was $1.1 million in 2011, an increase of $0.5 million, compared to $0.6 million in 2010.

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Our effective tax rate was 39.8% in 2011 compared to 38.3% in 2010.  The increase was primarily due to the 2010 revaluation of deferred tax assets following the sale of PrimeNet Marketing Services (PrimeNet) and IPC Print Services, Inc. (IPC), which are discontinued operations.

Discontinued Operations

Earnings from discontinued operations, net of income tax expense, were $0.3 million in 2011 compared to $3.7 million in 2010.  Income tax expense was $0.2 million in 2011 compared to $2.3 million in 2010.

During 2005, Multi-Color Corporation (Multi-Color) acquired substantially all of the assets and certain liabilities of NorthStar Print Group, Inc. (NorthStar), our former label printing business.  Certain liabilities were excluded from the sale of NorthStar and primarily consisted of environmental site closure costs for both the Green Bay, Wisconsin real estate and real estate located in Norway, Michigan.  In January 2011, upon environmental site closure in Green Bay, Wisconsin, we sold the real estate holdings to Multi-Color according to the 2005 sale agreement.  The net proceeds were $0.8 million and we recorded a pre-tax gain of $0.6 million.  We continue to have environmental site closure obligations with respect to the Norway, Michigan real estate, which was sold to Multi-Color in 2005.

During 2010, we sold substantially all of the operating assets of PrimeNet, our direct marketing services business located in St. Paul, Minnesota and Clearwater, Florida, in two separate transactions.  In February 2010, certain direct mail and mail services operating assets located in St. Paul, Minnesota were sold for $0.1 million.  The remaining Minnesota-based assets were shutdown in April 2010, and, accordingly, we recorded $0.4 million for shutdown related costs in the second quarter of 2010.  In a separate transaction, in February 2010, we sold the Clearwater, Florida-based operations of PrimeNet for a $0.7 million note repayable over four years and a $0.1 million working capital note repayable over three years.  The consideration received in each transaction approximates the net book value of the assets sold.  In January 2012, the notes were paid in full.  In 2010, revenue from PrimeNet was $2.1 million and we recorded a $0.8 million net loss from operations and shut down related costs.

Also during 2010, we sold substantially all of the assets and certain liabilities of IPC, our former printing services business, to Walsworth Publishing Company.  Proceeds, net of transaction expenses, were $14.0 million and resulted in a gain on discontinued operations after income tax expense of $3.4 million.  An escrow fund in the amount of $0.7 million was established to secure representations and warranties pursuant to the purchase agreement for two years from the date of the sale.  In 2012, we received payment in full.  In 2010, revenue from IPC was $40.7 million and we recorded $1.1 million in net earnings from operations.

Net Earnings

Our net earnings in 2011 were $22.1 million, a decrease of $12.3 million, or 35.5%, compared to $34.4 million in 2010.  The decrease was due to the decrease in operating earnings from continuing operations for the reasons described above, a decrease in earnings from discontinued operations and the increase in interest expense, partially offset by the decrease in the provision for income taxes.

Earnings per Share for Class A and B Common Stock

In 2011, basic and diluted net earnings per share of class A and B common stock were $0.37 for both.  This compared to $0.59 for both in 2010.  Basic and diluted earnings per share of class A and B common stock from continuing operations were $0.36 for both in 2011.  This compared to $0.52 for both in 2010.  Basic and diluted earnings per share of class A and B common stock from discontinued operations were $0.01 in 2011 compared to $0.07 for both in 2010.

Liquidity and Capital Resources

Our cash balance was $2.4 million as of December 30, 2012.  We believe our expected cash flows from operations and additional borrowings available under our senior secured credit facilities of $119.9 million as of December 30, 2012 will meet our current needs.  In connection with the acquisition of NewsChannel 5 Network, LLC, we amended the credit agreement to permit the acquisition and increase the total borrowing capacity to $350.0 million.  During 2012, we increased our notes payable to banks by $188.8 million.  In the third quarter of 2012, we funded the $11.7 million purchase price for the two Tulsa radio stations from our secured credit facility.  In the fourth quarter of 2012, we funded the $220.0 million purchase price for NewsChannel 5 Network, LLC from our secured term loan facility and our secured revolving credit facility. In the long-term, we expect to pay down our notes payable to banks, selectively invest resources in broadcast acquisitions, digital initiatives, our brands, employees, programming, products and capital projects while remaining in compliance with our debt covenants, and repurchase shares opportunistically.

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Long-term Notes Payable to Banks

We have senior secured credit facilities consisting of a secured term loan facility and a secured revolving credit facility.  Under these facilities, we have aggregate commitments of $350.0 million, including the term loan commitment of $150.0 million and the revolving credit facility commitment of $200.0 million, both of which mature on December 5, 2017.  As of December 30, 2012, the outstanding principal amount of revolving loans drawn under the credit agreement was $80.1 million, and the outstanding principal amount of term loans drawn under the credit agreement was $150.0 million.  The proceeds of the senior secured credit facilities were used for the acquisition of NewsChannel 5 Network, LLC and general corporate purposes.  Amounts under the secured revolving credit facility may be borrowed, repaid and reborrowed by us from time to time until the maturity date of the revolving loan facility.  Voluntary prepayments and commitment reductions are permitted at any time without fee upon proper notice and subject to a minimum dollar requirement.  Voluntary prepayments of the secured term loan facility represent a permanent reduction in credit available.  At our option, the commitments under the credit agreement may be increased from time to time to an aggregate amount not to exceed $450.0 million.  The increase option is subject to the satisfaction of certain conditions, including, without limitation, the identification of lenders (which may include existing lenders or new lenders) willing to provide the additional commitments.

Our borrowings under the credit agreement incur interest at either (a) LIBOR plus a margin that ranges from 150.0 basis points to 250.0 basis points, depending on our net debt ratio, or (b) (i) the base rate, which equals the highest of the prime rate set by U.S. Bank National Association, the Federal Funds Rate plus 50.0 basis points or one-month LIBOR plus 100.0 basis points, plus (ii) a margin that ranges from 50.0 basis points to 150.0 basis points, depending on our net debt ratio.  The initial pricing spread above LIBOR was 225.0 basis points.

Our obligations under the credit agreement are currently guaranteed by each of our subsidiaries.  Subject to certain exceptions, the credit agreement is secured by liens on certain of our assets and contains affirmative, negative and financial covenants which are customary for financings of this type, including, among other things, limits on the creation of liens, limits on the incurrence of indebtedness, restrictions on dispositions and restrictions on the payment of dividends.

As of December 30, 2012, we are in compliance with the financial covenants of the secured credit facility. The secured credit facility contains the following financial covenants, which remain constant over the term of the agreement:

· A consolidated funded debt ratio of not greater than 3.75-to-1, as of the end of each fiscal quarter, as determined for the four fiscal quarters then ended.  This ratio compares, as of the date of determination, our consolidated funded debt on such date to consolidated EBITDA, defined in the credit agreement as earnings before interest, taxes, depreciation, amortization, restructuring charges, gains/losses on asset disposals, non-cash charges and certain other adjustments.  As of December 30, 2012, our consolidated funded debt ratio was 2.29-to-1.

· A minimum interest coverage ratio of not less than 3-to-1, as of the end of each fiscal quarter, as determined for the four fiscal quarters then ended.  This ratio compares, for any period, our consolidated EBITDA, defined in the credit agreement as earnings before interest, taxes, depreciation, amortization, restructuring charges, gains/losses on asset disposals, non-cash charges and certain other adjustments.  As of December 30, 2012, our interest coverage ratio was 23.99-to-1.

As of December 30, 2012 and December 25, 2011, we had borrowings of $230.1 million and $41.3 million, respectively, under our credit facility at a currently effective blended interest rate of 2.53% and 2.65%, respectively.  Fees in connection with the credit facility of $4.7 million are being amortized over the term of the secured credit facility using the straight-line method.

We estimate the fair value of our senior secured credit facilities at December 30, 2012 to be $224.8 million, based on discounted cash flows using an interest rate of 3.08%.  We estimated the fair value of our secured credit facility at December 25, 2011 to be $41.0 million, based on discounted cash flows using an interest rate of 3.05%.  Interest rates utilized are estimated based on observed market rates of interest for debt with similar maturities and seniority.  These fair value measurements fall within Level 2 of the fair value hierarchy.

One or more of the lenders in our secured credit facility syndicate could be unable to fund future draws thereunder or take other positions adverse to us. In such an event, our liquidity could be constrained with an adverse impact on our ability to operate our businesses.

Unsecured Subordinated Notes Payable

On August 13, 2012, we repurchased all 3.3 million outstanding shares of our class C common stock, including all rights associated with such shares of class C common stock, in exchange for $6.2 million in cash and the issuance of 15 unsecured subordinated promissory notes with an aggregate principal amount of $25.6 million and bearing interest at a rate of 7.25% per annum.  The cash payment equaled the amount of the minimum unpaid and undeclared dividend on the class C common stock through August 12, 2012.

The aggregate principal amount of the subordinated notes was determined by multiplying the volume weighted average price of our class A common stock on the New York Stock Exchange over the five consecutive trading days ending on (and including) August 10, 2012 of $5.75 by the number of fully diluted shares of class C common stock (each class C share was convertible into 1.363970 shares of class A common stock pursuant to our amended and restated articles of incorporation for a total of 4.5 million shares on a class A-equivalent basis).

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One subordinated note of $1.4 million was repaid in full on September 21, 2012.  Six of the remaining subordinated notes, with an aggregate principal amount of $8.3 million, were paid on December 21, 2012.  The remaining eight subordinated notes, with an aggregate principal amount of approximately $15.9 million, are payable in six equal annual installments on September 30 of each of 2013, 2014, 2015, 2016, 2017 and 2018, with no prepayment right.  Interest on the notes is payable quarterly.

We estimate the fair value of the subordinated notes to be $16.2 million based on discounted cash flows using an interest rate of 7.26%, which falls within Level 2 of the fair value hierarchy.  Interest rates utilized are estimated based on observed market rates of interest for debt with similar maturities and seniority.  As of December 30, 2012, $15.9 million of the subordinated notes remains outstanding.

We have $2.3 million of standby letters of credit for business insurance purposes.

On October 12, 2010, our board of directors approved an amendment to our qualified defined benefit pension plan to permanently suspend the plan and permanently cease all benefit accruals under the plan effective January 1, 2011 for all active participants, except for any employee covered by a collective bargaining agreement which require us to bargain over the permanent suspension of the plan accruals.  We also permanently suspended the unfunded nonqualified plan that provided additional benefits to certain employees whose benefits under the pension plan and 401(k) plan were restricted due to limitations imposed by the Internal Revenue Service.  For employees not covered by the qualified defined benefit pension plan, the 401(k) plan was also amended on October 12, 2010.  The annual employer contribution is no longer a component of the 401(k) plan effective January 1, 2011.  In addition, effective January 1, 2011, we enhanced the current matching contribution to our 401(k) plan.  Prior to the suspension in February 2009, we contributed $0.50 for each dollar contributed by the 401(k) participant, up to 5% of their eligible wages for a maximum match of 2.5% of eligible wages as defined by the 401(k) plan.  Starting January 1, 2011, we began contributing $0.50 for each dollar contributed by the 401(k) participant, up to 7% of their eligible wages for a maximum match of 3.5% of eligible wages as defined by the 401(k) plan.

Our liability for separation benefits of $0.8 million as of December 30, 2012 will be paid during the next year.  The ongoing activity of our liability for separation benefits during the years ended December 30, 2012 and December 25, 2011 were as follows:

			Charge for		Payments for
	Balance as of		Separation		Separation			Balance as of
	December 25, 2011		Benefits		Benefits			December 30, 2012
	(dollars in millions)
Daily newspaper and community newspapers and shoppers	$	1.8	$	1.6	$	(2.6	)	$	0.8
Total	$	1.8	$	1.6	$	(2.6	)	$	0.8

			Charge for		Payments for
	Balance as of		Separation		Separation			Balance as of
	December 26, 2010		Benefits		Benefits			December 25, 2011
	(dollars in millions)
Daily newspaper and community newspapers and shoppers	$	1.4	$	1.7	$	(1.3	)	$	1.8
Total	$	1.4	$	1.7	$	(1.3	)	$	1.8

Dividends

In April 2009, our board of directors suspended dividends on our class A and class B shares, and suspended the payment of the cumulative unpaid and undeclared minimum dividend on our formerly outstanding class C shares.  Prior to the August 2012 repurchase of our class C shares, the accumulated unpaid and undeclared minimum class C dividend of approximately $0.14 per share each quarter was required to be paid prior to the payment of any dividends on our class A and class B shares.  Our board of directors consistently reviews our dividend payment policy, as well as our ability to pay cash dividends, at each quarterly board of directors meeting.

Share Repurchase Authorization

In July 2011, our board of directors authorized a share repurchase program of up to $45.0 million of our outstanding class A common stock and/or class B common stock until the end of fiscal 2013. Under the program, shares may be repurchased from time to time in the open market and/or in private transactions and will depend on market conditions, share price, trading volume, credit agreement covenants and other factors.  In the year ended December 30, 2012, we purchased 0.7 million shares of our class A common stock for $3.5 million, or an average of $4.99 per share.  In the year ended December 25, 2011, we purchased 1.1 million shares of our class A common stock for $4.1 million, or an average of $3.73 per share, excluding commissions.  As of December 30, 2012, $37.4 million worth of shares of our class A common stock and/or class B common stock remain available to be purchased under our July 2011 authorization.  

On August 13, 2012, we repurchased all 3.3 million outstanding shares of our class C common stock, including all rights associated with such shares of class C common stock. See “Liquidity and Capital Resources.”

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Acquisitions and Sales

On June 25, 2012, Journal Broadcast Group, Inc. and Journal Broadcast Corporation, our broadcasting business, completed the asset purchase of KHTT-FM and KBEZ-FM in Tulsa, Oklahoma from Renda Broadcasting Corporation for $11.7 million in cash.  Subsequent to this purchase, we now own five radio stations in Tulsa, Oklahoma.

We had an affiliation agreement with ACE TV, Inc. for the rights under a local marketing agreement for WACY-TV in Appleton, Wisconsin and to acquire certain assets of ACE TV, Inc. including the broadcast license of WACY-TV for a purchase price of $2.0 million.  On October 22, 2012, we closed on the acquisition of the remaining assets used in the operation of WACY-TV from ACE TV, Inc.  See Note 9 “Variable Interest Entity.”

On December 3, 2012, Journal Broadcast Group, Inc. completed the sale of certain assets (including the FCC licenses) of WKTI-AM in Knoxville, Tennessee for $0.1 million.

On December 3, 2012, Journal Community Publishing Group, Inc., our community newspapers and shoppers business, completed the sale of Hodag Buyers’ Guide, North Star Journal, Merrill Foto News, Wausau Buyers’ Guide, Stevens Point Buyers’ Guide, Wood County Buyers’ Guide, Waupaca Buyers’ Guide, Waupaca County Post East, Waupaca County Post West, Clintonville Shoppers’ Guide, New London Buyers’ Guide, Silent Sports, Waupacanow.com, Merrillfotonews.com, Starjournalnow.com, Silentsports.net, Wibuyersguide.com and a single copy distribution network based in Rhinelander, WI for $1.2 million in cash and a $0.8 million note receivable.  We recorded a pre-tax loss on the sale, net of transaction expenses, of $0.3 million.

On December 6, 2012, the Journal Broadcast Group, Inc. subsidiary of Journal Communications, Inc., completed the acquisition of NewsChannel 5 Network, LLC from a subsidiary of Landmark Media Enterprises, LLC.  The purchase price was $220.0 million including a working capital adjustment of $5.0 million.

On December 20, 2012, Journal Broadcast Corporation reached an agreement to purchase WNOX-FM in the Knoxville, TN market from Oak Ridge FM, Inc.  The transaction is subject to FCC approval.

In June 2011, Journal Community Publishing Group, Inc., our community newspapers and shoppers business, completed the sale of Pelican Press and Pelican Press Marketplace businesses, which operated in Sarasota, Florida, for $0.5 million.  We recorded a pre-tax gain on the sale, net of transaction expenses, of $0.2 million.  In August 2011, Journal Community Publishing Group, Inc. completed the sale of the remaining Florida-based community newspapers and shoppers businesses for aggregate consideration of $0.8 million.  The publications and web-sites included Florida Mariner, Clay Today, Clay County Leader, Ponte Vedra Recorder, St. Augustine Underground, First Coast Register and Car Connection, and were distributed in the Clay, St. John’s and Duval, Florida counties.  We recorded a total pre-tax gain on the sales, net of transaction expenses, of $0.3 million. 

Cash Flow

Continuing Operations

During 2012, we have used cash provided by operating activities to fund capital expenditures, acquire two radio stations in Tulsa, purchase the remaining assets of WACY-TV in Green Bay, reduce our debt, make a cash payment equal to the minimum unpaid and undeclared dividend in connection with the repurchase of our outstanding shares of class C common stock, and, to a lesser extent, repurchase shares of our class A common stock. In 2012, we increased our notes payables to banks by $188.8 million to fund our WTVF NewsChannel 5 acquisition.

Cash provided by operating activities was $77.7 million in 2012 compared to $45.5 million in 2011.  The increase was primarily due to increased net earnings driven primarily by increased political and issue advertising, an increase in cash provided by working capital, decreased income tax payments and decreased payments related to our executive incentive compensation plans and other performance based plans related to our 2011 results.

Cash used for investing activities was $240.3 million in 2012 compared to $8.9 million in 2011.  Capital expenditures were $12.7 million in 2012 compared to $10.7 million in 2011.  Our capital expenditures in 2012 were primarily at our broadcasting business for needed improvements at our facilities, high definition equipment and digital content management solutions.  We believe these capital expenditures will help us to better serve our advertisers, viewers and listeners and will facilitate our cost control initiatives. In 2012, we acquired WTVF NewsChannel 5 for $220.0 million and KHTT-FM and KBEZ-FM for $11.7 million.  In 2012, we sold the majority of our northern Wisconsin community newspapers and shoppers publications for $1.2 million in cash and a $0.8 million note receivable (non-cash consideration), WKTI-AM for $0.1 million, and received payment of $1.6 million on notes receivable from previously sold operations.  In 2011, we received $1.6 million in proceeds from the sales of the Florida-based community newspapers and shoppers businesses and the minimum guaranteed commission and seller financing of working capital from the sale of the Clearwater, Florida based operations of PrimeNet.

Cash provided by financing activities was $162.7 million in 2012 compared to cash used for financing activities of $36.9 million in 2011.  Borrowings under our credit facility in 2012 were $350.0 million and we made payments of $161.2 million, reflecting a $188.8 million increase in our notes payable to banks compared to borrowings of $94.4 million and payments of $127.7 million in 2011 for a decrease in our notes payable to banks of $33.3 million.  Offsetting the cash provided by increased borrowings under our credit facility, we made payments of $9.7 million on our unsecured subordinated notes issued in conjunction with the class C share repurchase in 2012.  Also in 2012, we made a cash payment of $6.2 million equal to the accumulated unpaid and undeclared dividend on the class C common stock through August 12, 2012.  We did not pay cash dividends in 2011.

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Discontinued Operations

Cash provided by discontinued operations was $0.6 million in 2011, reflecting the sale of real estate holdings of NorthStar.

Contractual Obligations

Our contractual obligations as of December 30, 2012 are summarized below:

	Payments due by Period
	Total		Less than 1 year		1-3 years		3-5 years		More than 5 years
	(dollars in millions)
Contractual obligations
Long-term notes payable to banks (1)	$	256.5	$	15.5	$	40.4	$	200.6	$	-
Unsecured subordinated notes payable		19.7		3.5		7.0		6.3		2.9
Pension and other postretirement benefits (2)		113.2		10.8		22.2		22.6		57.6
Syndicated programs(3)		9.1		4.2		4.7		0.2		-
Operating leases		10.5		3.0		3.4		1.5		2.6
Other liabilities(4)		13.0		3.8		4.1		1.6		3.5
Total	$	422.0	$	40.8	$	81.8	$	232.8	$	66.6

(1) Includes the associated interest calculated on our unhedged variable rate outstanding borrowings of $230.1 million as of December 30, 2012 at a currently effective blended interest rate of 2.53%.

(2) For the pension and other postretirement benefits, payments included in the table have been actuarially estimated over a ten-year period.  Unfunded non-qualified pension benefit payments and other postretirement benefits are expected to be funded directly from company assets through 2022.  Qualified pension benefit payments are expected to be funded by plan assets through 2022.  While benefit payments under these benefit plans are expected to continue beyond 2022, we believe that an estimate beyond this period is unreasonable.

(3) Syndicated programs consists of programs available for broadcast, as recorded in our consolidated balance sheet, and programs we are committed to purchase that currently are not available for broadcast, including programs not yet produced.  Over the next five years, we are committed to purchase and provide advertising time in the amount of $9.1 million for television program rights.

(4) Other liabilities consist primarily of obligations for severance, unrecognized tax benefits, capital leases and deferred compensation.

Our secured credit facility with extending lenders expires on December 5, 2017.

Based on actuarial estimates, we expect to make contributions of approximately $65.0 million to the qualified pension plan over a ten-year period.  If actual results differ from the estimates used, the amount of contributions to the qualified pension plan would likely change.  As of December 30, 2012, we expect to make payments over a ten-year period for the non-qualified pension plan and other postretirement benefit plan of $6.4 million and $13.4 million, respectively.

We lease office space, certain broadcasting facilities, distribution centers, buildings used for printing plants and equipment under both short-term and long-term leases accounted for as operating leases.  Some of the lease agreements contain renewal options and rental escalation clauses, as well as provisions for the payment of utilities, maintenance and taxes.

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As of December 30, 2012, our expected payment for significant contractual obligations includes approximately $1.0 million for our liability for unrecognized tax benefits and related interest income/expense and penalties.  We have estimated that our liability for unrecognized tax benefits will be settled as follows: $0.1 million will occur in less than one year and $0.9 million will occur in one to three years.

Off-Balance Sheet Arrangements

We do not engage in off-balance sheet transactions, arrangements, obligations (including contingent obligations), and other relationships with unconsolidated entities or other persons that may have a material current or future effect on our financial condition, results of operations, liquidity, capital expenditures, capital resources, or significant components of revenues or expenses.  We do not rely on off-balance sheet arrangements for liquidity, capital resources, market risk support, credit risk support or other benefits.

Critical Accounting Policies

Our management’s discussion and analysis of financial condition and results of operations are based upon our consolidated financial statements, which have been prepared in accordance with U.S. generally accepted accounting principles.  The preparation of these financial statements requires us to make estimates and judgments that affect the reported amounts of assets, liabilities, revenues and expenses, and related footnote disclosures.  On an on-going basis, we evaluate our estimates, including those related to doubtful accounts, property and equipment, intangible assets, income taxes, litigation, and pension and other postretirement benefits.  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.  We do not believe our past results have differed materially from these estimates; however, we cannot predict how actual results may differ from these estimates in the future.

We believe the following critical accounting policies affect our more significant judgments and estimates used in the preparation of our consolidated financial statements.

Allowance for doubtful accounts

We evaluate the collectability of our accounts receivable based on a combination of factors.  We specifically review historical write-off activity by market, large customer concentrations, customer creditworthiness and changes in our customer payment patterns and terms when evaluating the adequacy of the allowance for doubtful accounts.  In circumstances where we are aware of a specific customer's inability to meet its financial obligations to us (such as bankruptcy filings, credit history, etc.), we record a specific reserve for bad debts against amounts due us to reduce the net recognized receivable to the amount we reasonably believe will be collected.  For all other customers, we recognize reserves for bad debts based on past loss history, the length of time the receivables are past due and the current business environment.  If our evaluations of the collectability of our accounts receivable differ from actual results, increases or decreases in bad debt expense and allowances may be required.

Property and equipment and definite-lived intangibles

We assign useful lives for our property and equipment and definite-lived intangibles based on our estimate of the amount of time that we will use those assets and we have selected the straight-line method to depreciate our property and equipment and definite-lived intangibles.  A change in the estimated useful lives or the depreciation or amortization method used could have a material impact upon our results of operations.

Accounting standards require that, if the sum of the future cash flows expected to result from an asset or group of assets, undiscounted and without interest charges, is less than the carrying amount of the asset or group of assets, an asset impairment must be recognized in the financial statements.  An evaluation of our property and equipment and definite-lived intangible assets did not indicate any impairment in 2011.  In 2012, we recognized $0.5 million of impairment related to certain assets held for sale.  Fair value was determined pursuant to a broker’s opinion of value.  The estimated future cash flows related to an asset or group of assets is highly susceptible to change because we must make assumptions about future revenue and the related cost of sales.  Changes in our assumptions could require us to recognize a loss for asset impairment in the future.

Impairment of goodwill and indefinite-lived intangibles

Goodwill and broadcast licenses accounted for 40.8% and 21.6% of total assets as of December 30, 2012 and December 25, 2011, respectively.  The interim and annual impairment tests for goodwill and broadcast licenses in accordance with the FASB’s guidance for goodwill and intangible assets require us to make certain assumptions in determining fair value, including assumptions about the cash flow growth rates of our businesses.  Additionally, the fair values are significantly impacted by factors including competitive industry valuations and long-term interest rates that exist at the time the annual impairment tests are performed.  Accordingly, we may incur additional impairment charges in future periods to the extent we do not achieve our expected cash flow growth rates, and to the extent that market values and long-term interest rates in general decrease and increase, respectively.

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The recoverability of goodwill is measured at the reporting unit level, which is defined as either an operating segment or one level below an operating segment.  A component is a reporting unit when the component constitutes a business for which discrete financial information is available and segment management regularly reviews the operating results of the component.  Components may be combined into one reporting unit when they have similar economic characteristics.  We have three reporting units and we have allocated goodwill to two of them, the community newspaper and shoppers reporting unit and the broadcasting reporting unit.  We performed our annual impairment test for both reporting units as of September 24, 2012.

For purposes of testing the carrying values of goodwill related to our reporting units, we determine fair value by using an income and a market valuation approach.  The income approach uses expected cash flows for each reporting unit.  The cash flows are discounted for risk and time value.  In addition, the present value of the projected residual value is estimated and added to the present value of the cash flows.  The market approach is based on price multiples of publicly traded stocks of comparable companies to estimate fair value.  We assign a greater weight to the income approach as the market approach is deemed less reliable due to the differences in entity size and business model between our reporting units and the comparable companies selected.

For our community newspaper and shoppers reporting unit, we based our fair value estimates on various assumptions about our projected operating results, including continuing declines in publishing revenues as well as an expectation that we will achieve cash flow benefits from our continuing cost cutting measures.  The valuation methodology used to estimate the fair value of our reporting unit requires inputs and assumptions (i.e., market growth, operating cash flow margins and discount rates) that reflect current market conditions as well as management judgment.  These assumptions may change due to changes in market conditions and such changes may result in an impairment of our goodwill.

For the broadcasting reporting unit, we based our fair value estimates, in large measure, on projected financial information which we believe to be reasonable.  However, actual future results may differ from those projections, and those differences may be material.  The valuation methodology used to estimate the fair value of our reporting unit requires inputs and assumptions (i.e., market growth, operating cash flow margins and discount rates) that reflect current market conditions as well as management judgment.

For broadcast licenses at individual television and radio stations, we use the Greenfield Method an income approach commonly used in the broadcast sector to estimate fair value.  This approach assumes the start up of a new station by an independent market participant and incorporates assumptions that are based on past experiences and judgments about future market performance.  These variables include, but are not limited to: the forecasted growth rate of each market (including market population, household income and retail sales), estimated market share, profit margins and operating cash flows of an independent station within a market, estimated capital expenditures and start up costs, risk-adjusted discount rate, likely media competition within the market and expected growth rates into perpetuity to estimate terminal values.  Adverse changes in significant assumptions such as an increase in discount rates or a decrease in projected market revenues, market share or operating cash flows could result in additional non-cash impairment charges on our broadcast licenses in future periods, which could have a material impact on our financial condition and results of operations.  We performed our annual impairment test on our broadcast licenses at individual television and radio stations in 2012, which indicated two of our television broadcast licenses and two of our radio broadcast licenses were impaired due to a decline in projected long-term market revenues and an increase in the discount rates. Accordingly, we recorded a charge of $1.7 million for the impairment of our broadcasting licenses.

Accrued income taxes

The Internal Revenue Service (IRS) and various state Departments of Revenue routinely examine our federal and state tax returns.  We believe our tax positions comply with applicable tax law, and we would vigorously defend these positions if challenged.  The final disposition of any positions challenged by the IRS or state Departments of Revenue could require us to make additional tax payments or have an impact on our effective tax rate.  Nonetheless, we believe that we have adequately reserved for any foreseeable payments related to such matters and consequently do not anticipate any material earnings impact from the ultimate resolution of such matters.  As of December 30, 2012 and December 25, 2011, our liabilities for unrecognized tax benefits and related interest and penalties were $0.9 million and $1.2 million, respectively.

We deduct broadcast licenses and tax-deductible goodwill over a period of 15 years from the date of acquisition.  The non-cash broadcast license impairment charges recorded in 2011 and 2012 are not currently deductible for income tax purposes and have caused us to recognize deferred tax assets.  We believe it is more likely than not that we will realize a tax benefit for our deferred tax assets and we believe that they will be utilized to offset future taxable income over the next 20 years in accordance with current income tax law.  In the future, we may be required to record a valuation allowance against our deferred tax assets if we have future operating losses or reductions in our expected future profitability which would cause us to believe we would be unable to utilize them.

Accrued litigation

We are subject to various legal actions, administrative proceedings and claims.  When necessary, we record a liability for an estimate of the probable costs for the resolution of such claims.  The estimate would be developed in consultation with counsel and would be based upon an analysis of potential results, assuming a combination of litigation and settlement strategies.  We believe that such unresolved legal actions and claims would not materially affect our results of operations, financial position or cash flows.

52

Employee benefits

We are self-insured for a majority of our employee related health and disability benefits and workers compensation claims.  Third party administrators are used to process all claims.  Liabilities for unpaid claims are based on our historical claims experience.  Liabilities for workers compensation claims are developed from actuarial valuations.  Actual amounts could vary significantly from such estimates which may require us to record additional expense in the future.

There are certain assumptions that have a significant effect on our obligations, such as:

· the discount rate – used to arrive at the net present value of the obligations and expense;

· the return on assets – used to estimate the growth in invested asset value available to satisfy certain obligations;

· the employee turnover statistics – used to estimate the number of employees to be paid pension benefits.

The assumptions used in accounting for pension benefits and other postretirement benefits for 2012 and 2011 are:

	Pension Benefits						Other Postretirement Benefits
	2012			2011			2012			2011
Discount rate for expense		4.55	%		5.35	%		3.85	%		4.95	%
Discount rate for obligations		3.95			4.55			2.75			3.85
Expected return on plan assets		7.75			8.25			-			-

For our pension plans, as of December 30, 2012, a one percent increase or decrease in the discount rate would have the following effects (in millions):

	1% Increase			1% Decrease
Effect on total of service and interest cost components in 2012	less than $(0.1)			less than $(0.1)
Effect on pension benefit obligation as of December 30, 2012	$	(20.5	)	$	25.2

To determine the discount rate assumptions for the pension and the other postretirement benefit plans, we studied our plans’ specific discount rate by matching our projected benefit payments to a yield curve developed from high grade corporate bonds.  The results of those studies were used as the benchmark to determine the discount rate assumptions.

We study historical markets to determine the long-term rate of return assumption for pension plan assets.  We preserved the long-term historical relationships between equities and fixed-income securities consistent with the widely accepted capital market principle that assets with higher volatility generate a greater return over the long run.  We evaluate current market factors such as inflation and interest rates before we determine long-term capital market assumptions.  We review peer data and historical returns to check for reasonability and appropriateness.

We make other assumptions that affect the accounting for pension benefits.  Changes in these assumptions affect the benefit obligations and the service and interest cost components of the pension plan and the other postretirement plan and the required funding of the pension plan.  We review these assumptions on an annual basis.

The discount rate and medical cost inflation assumptions could have a significant effect on our other postretirement benefits obligations.  The discount rate is used to arrive at the net present value of the obligation.  The health care cost trend rate is used to calculate the impact future medical costs would have on postretirement obligations.  A one percent increase or decrease in the assumed health care cost trend rate would have the following effects (in millions):

	1% Increase		1% Decrease
Effect on total of service and interest cost components in 2012	less than $0.1		less than $(0.1)
Effect on postretirement benefit obligation as of December 30, 2012	$	0.2	$	(0.2	)

53

New accounting standards

In February 2013, the FASB issued guidance related to items reclassified from accumulated other comprehensive income.  The new guidance requires either in a single note or parenthetically on the face of the financial statements: (i) the effect of significant amounts reclassified from each component of accumulated other comprehensive income based on its source and (ii) the income statement line items affected by the reclassification. This guidance is effective for fiscal years beginning January 1, 2013 with early adoption permitted.  We do not expect the adoption of this guidance to have a material impact on our consolidated financial statements.

In July 2012, the Financial Accounting Standards Board (FASB) issued amended guidance for impairment of indefinite-lived intangible assets.  The guidance allows for an option to first assess qualitative factors to determine whether the existence of events or circumstances leads to a determination that it is more likely than not that the fair value of the indefinite-lived intangible asset exceeds its carrying amount.  If the qualitative factors lead us to conclude it is more likely than not that the fair value exceeds the carrying value of the indefinite-lived intangible asset, then the fair value does not need to be calculated.  This update is effective for annual and interim impairment tests performed for the fiscal years beginning after September 15, 2012, with early adoption permitted.  We adopted this guidance in 2012.

In September 2011, the FASB issued amended guidance for goodwill impairment.  The guidance simplifies how entities test goodwill for impairment.  The new guidance allows an entity to first assess qualitative factors to determine whether it is necessary to perform the two-step quantitative goodwill impairment test.  Under these amendments, an entity will be required to perform the two-step impairment test only if it concludes that the fair value of a reporting unit is more likely than not, less than its carrying value.  This guidance is effective for fiscal years, and interim periods within those years, beginning after December 15, 2011, with early adoption permitted.  We adopted this guidance in the first quarter of 2012.

In June 2011, the FASB issued amended guidance for comprehensive income.  The guidance requires an entity to present the total of comprehensive income, the components of net income and the components of other comprehensive income either in a single continuous statement of comprehensive income or in two separate but consecutive statements.  The new guidance eliminates the option to present the components of other comprehensive income as part of the statement of shareholders’ equity.  Subsequently, in December 2011, the FASB issued its final standard to defer the new requirement to present components of reclassifications of other comprehensive income on the face of the income statement.  The other requirements contained in the new standard on comprehensive income must still be adopted by the FASB.  This guidance is effective for fiscal years, and interim periods within those years, beginning after December 15, 2011, with early adoption permitted.  We adopted this guidance in the first quarter of 2012 and opted to present the total of comprehensive income in two separate but consecutive statements.

In May 2011, the FASB issued amended guidance for fair value measurement and disclosure requirements between U.S. generally accepted accounting principles and International Financial Reporting Standards (IFRS).  The new guidance includes amendments to clarify the definition of fair value and ensure that the fair value measurement and disclosure requirements are similar between U.S. generally accepted accounting principles and IFRS.  The guidance also changes certain fair value measurement principles and enhances the disclosure requirements particularly for level 3 fair value measurements.  This guidance is effective for fiscal years, and interim periods within those years, beginning after December 15, 2011.  We adopted this guidance in the first quarter of 2012.

Effect of Inflation

Our results of operations and financial condition have not been significantly affected by general inflation.  We have reduced the effects of rising costs through improvements in productivity, cost containment programs and, where the competitive environment permits, increased selling prices.  However, changes in newsprint prices could have an adverse impact on costs, which we may not be able to offset fully in our pricing or cost containment programs.  In addition, inflation and its impact on floating interest rates could affect the amount of interest payments due on our secured credit facilities.

ITEM 7A. QUANTITATIVE AND QUALITATIVE DISCLOSURES ABOUT MARKET RISK

We are exposed to market risk stemming from changes in interest rates on our long-term notes payable to banks, which are borrowings under our secured revolving credit facilities, and in prices for newsprint.  Changes in these factors could cause fluctuations in our net earnings and cash flows.  Interest rates on our long-term notes payable to banks are variable.  Our borrowings under the secured credit facilities incur interest at either (a) LIBOR plus a margin that ranges from 150.0 basis points to 250.0 basis points, depending on our net debt ratio, or (b) (i) the base rate, which equals the highest of the prime rate set by U.S. Bank National Association, the Federal Funds Rate plus 50.0 basis points or one-month LIBOR plus 100.0 basis points, plus (ii) a margin that ranges from 50.0 basis points to 150.0 basis points, depending on our net debt ratio.  The initial pricing spread above LIBOR was 225.0 basis points.  Average interest rates on borrowings under our revolving credit facility ranged from 2.65% at the beginning of 2012 to 2.53% at the end of 2012.  If interest rates had been 100 basis points higher, our annual interest expense would have increased $0.3 million, assuming comparable borrowing levels.  We have not entered into derivative instruments to manage our exposure to interest rate risk.

Price fluctuations for newsprint can have a significant effect on our results of operations.  The average net price per ton was $629 in 2012.  Based on the consumption of newsprint in 2012 for our publishing businesses, a $10 per ton increase or decrease in the price of newsprint would increase or decrease our total cost of newsprint by $0.3 million.  We have not entered into derivative instruments to manage our exposure to newsprint price risk.

54

ITEM 8. FINANCIAL STATEMENTS AND SUPPLEMENTARY DATA

JOURNAL COMMUNICATIONS, INC.

CONSOLIDATED BALANCE SHEETS

Years Ended December 30, 2012 and December 25, 2011

 (in thousands, except share and per share amounts)

	2012			2011
ASSETS
Current assets:
Cash and cash equivalents	$	2,430		$	2,418
Investments of variable interest entity		-			500
Receivables, net		65,265			56,695
Inventories, net		2,944			1,766
Prepaid expenses and other current assets		3,980			3,877
Syndicated programs		2,446			2,822
Deferred income taxes		3,053			3,593
TOTAL CURRENT ASSETS		80,118			71,671
Property and equipment:
Land and land improvements		37,574			35,164
Buildings and building improvements		132,400			128,102
Equipment		245,686			242,420
Construction in progress		3,476			2,239
		419,136			407,925
Less accumulated depreciation		247,782			239,725
Net property and equipment		171,354			168,200
Syndicated programs		5,200			4,457
Goodwill		125,818			8,670
Broadcast licenses		129,566			81,547
Other intangible assets, net		62,734			21,400
Deferred income taxes		43,019			57,236
Other assets		7,994			4,544
TOTAL ASSETS	$	625,803		$	417,725
LIABILITIES AND EQUITY
Current liabilities:
Accounts payable	$	26,861		$	20,516
Accrued compensation		10,715			11,888
Accrued employee benefits		5,155			6,217
Deferred revenue		16,277			14,662
Syndicated programs		2,686			3,436
Accrued income taxes		3,756			2,740
Other current liabilities		6,821			6,093
Current portion of unsecured subordinated notes payable		2,656			-
Current portion of long-term liabilities		126			382
TOTAL CURRENT LIABILITIES		75,053			65,934
Accrued employee benefits		92,907			90,176
Syndicated programs		5,477			5,527
Long-term notes payable to banks		230,095			41,305
Unsecured subordinated notes payable		13,279			-
Other long-term liabilities		3,491			8,595
Equity:
Preferred stock, $0.01 par - authorized 10,000,000 shares; no shares outstanding at December 30, 2012 and December 25, 2011		-			-
Common stock, $0.01 par:
Class C - authorized 10,000,000 shares; issued and outstanding: no shares at December 30, 2012 and 3,264,000 shares at December 25, 2011		-			33
Class B - authorized 120,000,000 shares; issued and outstanding: 6,905,955 shares at December 30, 2012 and 7,214,374 shares at December 25, 2011		63			66
Class A - authorized 170,000,000 shares; issued and outstanding: 43,750,920 shares at December 30, 2012 and 43,778,922 shares at December 25, 2011		438			438
Additional paid-in capital		254,437			257,552
Accumulated other comprehensive loss		(55,739	)		(52,982	)
Retained earnings (deficit)		6,302			(83	)
Total Journal Communications, Inc. shareholders' equity		205,501			205,024
Noncontrolling interest		-			1,164
TOTAL EQUITY		205,501			206,188
TOTAL LIABILITIES AND EQUITY	$	625,803		$	417,725

See accompanying notes.

55

JOURNAL COMMUNICATIONS, INC.

CONSOLIDATED STATEMENTS OF OPERATIONS

Years Ended December 30, 2012, December 25, 2011and December 26, 2010

 (in thousands, except per share amounts)

	2012			2011			2010
Revenue:
Broadcasting	$	235,627		$	186,080		$	194,365
Publishing		164,947			170,976			182,799
Corporate eliminations		(532	)		(263	)		(405	)
Total revenue		400,042			356,793			376,759
Operating costs and expenses:
Broadcasting		101,532			92,371			91,018
Publishing		107,289			109,557			117,074
Corporate eliminations		(532	)		(263	)		(405	)
Total operating costs and expenses		208,289			201,665			207,687
Selling and administrative expenses		130,080			114,467			116,048
Broadcast license impairment		1,681			879			-
Total operating costs and expenses and selling and administrative expenses		340,050			317,011			323,735
Operating earnings		59,992			39,782			53,024
Other income and (expense):
Interest income		22			117			81
Interest expense		(4,483	)		(3,642	)		(3,362	)
Total other income and (expense)		(4,461	)		(3,525	)		(3,281	)
Earnings from continuing operations before income taxes		55,531			36,257			49,743
Provision for income taxes		22,206			14,412			19,065
Earnings from continuing operations		33,325			21,845			30,678
Earnings from discontinued operations, net of applicable income tax expense of $0, $221 and $2,320, respectively		-			341			3,703
Net earnings	$	33,325		$	22,186		$	34,381
Earnings per share:
Basic - Class A and B common stock:
Continuing operations	$	0.61		$	0.36		$	0.52
Discontinued operations		-			0.01			0.07
Net earnings	$	0.61		$	0.37		$	0.59
Diluted - Class A and B common stock:
Continuing operations	$	0.61		$	0.36		$	0.52
Discontinued operations		-			0.01			0.07
Net earnings	$	0.61		$	0.37		$	0.59
Basic and diluted - Class C common stock:
Continuing operations	$	0.74		$	0.93		$	1.09
Discontinued operations		-			0.01			0.07
Net earnings	$	0.74		$	0.94		$	1.16

See accompanying notes

56

JOURNAL COMMUNICATIONS, INC.

CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME

Years Ended December 30, 2012, December 25, 2011and December 26, 2010

 (in thousands)

	2012			2011			2010
Net earnings	$	33,325		$	22,186		$	34,381
Other comprehensive income, net of tax:
Change in pension and postretirement, net of tax benefit (expense) of $1,792, $13,421 and ($1,511), respectively		(2,757	)		(20,687	)		2,192
Comprehensive income	$	30,568		$	1,499		$	36,573

See accompanying notes

57

JOURNAL COMMUNICATIONS, INC.

CONSOLIDATED STATEMENTS OF EQUITY

Years Ended December 30, 2012, December 25, 2011and December 26, 2010

 (in thousands, except per share amounts)

															Accumulated
												Additional			Other			Retained			Non-			Treasury
	Preferred		Common Stock									Paid-in			Comprehensive			Earnings			controlling			Stock,
	Stock		Class C			Class B			Class A			Capital			Loss			(Deficit)			Interests			at cost			Total
Balance at December 27, 2009	$	-	$	33		$	174		$	418		$	258,413		$	(34,487	)	$	55,239		$	-		$	(108,715	)	$	171,075
Net earnings																			34,381									34,381
Comprehensive income																2,192												2,192
Class C minimum dividends ($0.57 per share)																			(1,854	)								(1,854	)
Issuance of shares:
Conversion of class B to class A							(14	)		14																		-
Stock grants							5						576															581
Employee stock purchase plan							1						301															302
Shares purchased and retired																												-
Shares withheld from employees for tax withholding							(1	)					(549	)														(550	)
Stock-based compensation													1,211						1									1,212
Consolidation of variable interest entity																						1,164						1,164
Reversal of reserve for unrecognized tax benefits													113															113
Income tax benefits from vesting of restricted stock													311															311
Balance at December 26, 2010		-		33			165			432			260,376			(32,295	)		87,767			1,164			(108,715	)		208,927
Net earnings																			22,186									22,186
Comprehensive income																(20,687	)											(20,687	)
Class C minimum dividends ($0.57 per share)																			(1,854	)								(1,854	)
Issuance of shares:
Conversion of class B to class A							(17	)		17																		-
Stock grants							5						498															503
Employee stock purchase plan							1						327															328
Shares purchased and retired										(11	)		(4,129	)														(4,140	)
Treasury shares cancelled							(87	)					(446	)					(108,182	)					108,715			-
Shares withheld from employees for tax withholding							(1	)					(590	)														(591	)
Stock-based compensation													1,114															1,114
Income tax benefits from vesting of restricted stock													402															402
Balance at December 25, 2011	$	-	$	33		$	66		$	438		$	257,552		$	(52,982	)	$	(83	)	$	1,164		$	-		$	206,188
Net earnings																			33,325									33,325
Comprehensive income																(2,757	)											(2,757	)
Class C minimum dividends ($0.35 per share)																			(1,146	)								(1,146	)
Issuance of shares:
Conversion of class B to class A							(7	)		7																		-
Stock grants							5						384															389
Employee stock purchase plan													271															271
Class C shares repurchase				(33	)								(117	)					(25,794	)								(25,944	)
Shares purchased and retired										(7	)		(3,558	)														(3,565	)
Shares withheld from employees for tax withholding							(1	)					(654	)														(655	)
Stock-based compensation													1,639															1,639
Income tax benefits from vesting of restricted stock													293															293
Purchase of noncontrolling interest													(1,373	)								(1,164	)					(2,537	)
Balance at December 30, 2012	$	-	$	-		$	63		$	438		$	254,437		$	(55,739	)	$	6,302		$	-		$	-		$	205,501

See accompanying notes

58

JOURNAL COMMUNICATIONS, INC.

CONSOLIDATED STATEMENTS OF CASH FLOWS

Years Ended December 30, 2012, December 25, 2011and December 26, 2010

 (in thousands)

	2012			2011			2010
Cash flow from operating activities:
Net earnings	$	33,325		$	22,186		$	34,381
Less earnings from discontinued operations		-			341			3,703
Earnings from continuing operations		33,325			21,845			30,678
Adjustments for non-cash items:
Depreciation		21,074			21,764			22,697
Amortization		1,776			1,567			1,932
Provision for doubtful accounts		535			665			545
Deferred income taxes		16,843			11,871			8,604
Non-cash stock-based compensation		2,028			1,618			1,657
Curtailment gains for defined benefit pension plans		-			-			(1,109	)
Net (gain) loss from disposal of assets		428			(586	)		86
Impairment of broadcast licenses		1,681			879			-
Impairment of long-lived assets		493			-			1,802
Net changes in operating assets and liabilities, excluding effect of sales and acquisitions:
Receivables		(1,983	)		(2,381	)		2,172
Inventories		(1,178	)		(731	)		146
Accounts payable		5,880			(2,379	)		1,361
Other assets and liabilities		(3,240	)		(8,598	)		1,248
NET CASH PROVIDED BY OPERATING ACTIVITIES		77,662			45,534			71,819
Cash flow from investing activities:
Capital expenditures for property and equipment		(12,736	)		(10,661	)		(9,391	)
Proceeds from sales of assets		1,244			210			793
Proceeds from sale of businesses		2,904			1,574			14,044
Insurance proceeds for tower collapse and replacement		-			-			728
Acquisition of businesses		(231,728	)		-			-
NET CASH (USED FOR) PROVIDED BY INVESTING ACTIVITIES		(240,316	)		(8,877	)		6,174
Cash flow from financing activities:
Payments of financing costs		(4,583	)		-			(3,338	)
Proceeds from long-term notes payable to banks		349,955			94,409			88,983
Payments on long-term notes payable to banks		(161,165	)		(127,674	)		(165,788	)
Payments on unsecured subordinated notes payable		(9,664	)		-			-
Principal payments under capital lease obligations		(258	)		(343	)		(319	)
Proceeds from issuance of common stock, net		245			295			272
Income tax benefits from vesting of restricted stock		330			464			451
Redemption of common stock, net		(3,910	)		(4,010	)		-
Purchase of noncontrolling interest		(2,038	)		-			-
Payment of cash equivalent of accrued dividends		(6,246	)		-			-
NET CASH PROVIDED BY (USED FOR) FINANCING ACTIVITIES		162,666			(36,859	)		(79,739	)
Cash flow from discontinued operations:
Net operating activities		-			(259	)		1,069
Net investing activities		-			823			(636	)
NET CASH PROVIDED BY DISCONTINUED OPERATIONS		-			564			433
NET INCREASE (DECREASE) IN CASH AND CASH EQUIVALENTS		12			362			(1,313	)
Cash and cash equivalents:
Beginning of year		2,418			2,056			3,369
End of Year	$	2,430		$	2,418		$	2,056
SUPPLEMENTAL CASH FLOW INFORMATION
Cash paid for income taxes	$	4,317		$	7,710		$	8,110
Cash paid for interest	$	1,521		$	1,709		$	2,088

See accompanying notes

59

JOURNAL COMMUNICATIONS, INC.

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS

December 30, 2012 (in thousands, except per share amounts)

1 SIGNIFICANT ACCOUNTING POLICIES

Basis of presentation and consolidation—We report on a 52-53 week fiscal year ending on the last Sunday of December in each year.  In addition, we have four quarterly reporting periods, each consisting of thirteen weeks and ending on a Sunday, provided that once every six years the fourth quarterly reporting period will be fourteen weeks.  The fourth quarterly reporting period in our 2012 fiscal year consists of fourteen weeks.

The consolidated financial statements include the accounts of Journal Communications, Inc. and its wholly owned subsidiaries.  In 2012, we purchased the remaining noncontrolling interest associated with a variable interest entity (VIE) for which we were the primary beneficiary in accordance with U.S. generally accepted accounting principles and pursuant to the rules and regulations of the Securities and Exchange Commission.  All significant intercompany balances and transactions have been eliminated.

The gain on the sale of NorthStar Print Group Inc.’s (NorthStar) real estate holdings, the operations of PrimeNet Marketing Services (PrimeNet), our former direct marketing services business, and IPC Print Services, Inc. (IPC), our former printing services business, have been reflected as discontinued operations in our consolidated statements of operations.

Use of estimates—The preparation of financial statements in conformity with accounting principles generally accepted in the United States requires management to make estimates and assumptions that affect the amounts reported in the financial statements and accompanying notes.  Actual results could differ from those estimates.

Revenue recognition—Our principal sources of revenue are the sale of airtime on television and radio stations, the sale of advertising in newspapers and the sale of newspapers to individual subscribers and distributors.  In addition, we sell advertising on our newspaper, television and radio websites and derive revenue from other online activities.  Advertising revenue is recognized in the publishing and broadcasting businesses when advertisements are published, aired or displayed, or when related advertising services are rendered. Newspaper advertising contracts, which generally have a term of one year or less, may provide rebates or discounts based upon the volume of advertising purchased during the terms of the contracts.  Estimated rebates and discounts are recorded as a reduction of revenue in the period the advertisement is displayed.  This requires us to make certain estimates regarding future advertising volumes.  Estimates are based on various factors including historical experience and advertising sales trends.  These estimates are revised as necessary based on actual volumes realized.  Circulation revenue is recognized on a pro-rata basis over the term of the newspaper subscription or when the newspaper is delivered to the customer.  Amounts we receive from customers in advance of revenue recognition are deferred as liabilities.  Deferred revenue to be earned more than one year from the balance sheet date is included in other long-term liabilities in the consolidated balance sheets.

Printing revenue from external customers as well as third-party distribution revenue is recognized when the product is delivered in accordance with the customers’ instructions.

We also derive revenues from retransmission of our broadcast programs by Multichannel Video Programming Distributors (MVPDs).  Retransmission revenues from MVPDs are recognized based on average monthly subscriber counts and contractual rates over the terms of the agreements.

Multiple-deliverable revenue arrangements— Our broadcast business sells airtime on television and radio stations and online advertising bundled arrangements, where multiple products are involved.  Significant deliverables within these arrangements include advertising on television and radio stations and advertising placed on various company websites, each of which are considered separate units of accounting.  Our daily newspaper sells print and online advertising in bundled arrangements, where multiple products are involved.  Significant deliverables within these arrangements include advertising in the printed daily newspaper and advertising placed on various company websites, each of which are considered separate units of accounting.  There were no significant changes in units of accounting, the allocation process or the pattern and timing of revenue recognition upon adoption of the amended guidance related to revenue recognition for arrangements with multiple deliverables.

Shipping and handling costs—Shipping and handling costs, including postage, billed to customers are included in revenue and the related costs are included in operating costs and expenses.

Advertising expense—We expense our advertising costs as incurred.  Advertising expense totaled $7,533, $7,000 and $6,692 in 2012, 2011 and 2010, respectively.

Interest expense—All interest incurred during the years ended December 30, 2012, December 25, 2011 and December 26, 2010 was expensed.

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JOURNAL COMMUNICATIONS, INC.

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS

December 30, 2012 (in thousands, except per share amounts)

1 SIGNIFICANT ACCOUNTING POLICIES continued

Income taxes—Deferred taxes are provided for the net tax effects of temporary differences between the carrying amounts of assets and liabilities for financial reporting purposes and the amounts for income tax purposes.  Valuation allowances are established when management determines that it is more likely than not that some portion or all of a deferred tax asset will not be realized.

We recognize an uncertain tax position when it is more likely than not to be sustained upon examination by taxing authorities and we measure the tax benefit as the largest amount of benefit, determined on a cumulative probability basis, which is more likely than not to be realized upon ultimate settlement.

Fair values—The carrying amount of cash and cash equivalents, receivables, accounts payable, accrued severance and barter programming assets and liabilities approximates fair value as of December 30, 2012 and December 25, 2011.

Cash equivalents—Cash equivalents are highly liquid investments with maturities of three months or less when purchased.  Cash equivalents are stated at cost, which approximates market value.

Receivables, net—Our non-interest bearing accounts receivable arise primarily from the sale of advertising, commercial printing, commercial distribution and the retransmission of our television programs by MVPDs.  We record accounts receivable at original invoice amounts.  The accounts receivable balance is reduced by an estimated allowance for doubtful accounts. We evaluate the collectability of our accounts receivable based on a combination of factors.  We specifically review historical write-off activity by market, large customer concentrations, customer creditworthiness and changes in our customer payment patterns and terms when evaluating the adequacy of the allowance for doubtful accounts.  In circumstances where we are aware of a specific customer’s inability to meet its financial obligations, we record a specific reserve to reduce the amounts recorded to what we believe will be collected.  For all other customers, we recognize allowances for bad debts based on historical experience of bad debts as a percent of accounts receivable for each business unit.  We write off uncollectible accounts against the allowance for doubtful accounts after collection efforts have been exhausted.  The allowance for doubtful accounts at December 30, 2012 and December 25, 2011 was $2,468 and $1,870, respectively.

Concentration of credit risk—Generally, credit is extended based upon an evaluation of the customer’s financial position, and advance payment is not required.  Credit losses are provided for in the financial statements and have been within management’s expectations.  Given the current economic environment, credit losses may increase in the future.

Inventories—Inventories are stated at the lower of cost (first in, first out method) or market.  A summary of inventories follows:

	2012			2011
December 30 and December 25
Paper and supplies	$	2,950		$	1,778
Work in process		84			33
Less obsolescence reserve		(90	)		(45	)
Inventories, net	$	2,944		$	1,766

Television programming—We have agreements with distributors for the rights to television programming over contract periods, which generally run for one to five years.  Each contract is recorded as an asset and a liability at an amount equal to its gross contractual commitment when the license period begins and the program is available for its first showing.  The portion of program contracts that become payable within one year is reflected as a current liability in the accompanying consolidated balance sheets.  The rights to program materials are carried at the lower of unamortized cost or estimated net realizable value or in the case of programming obtained by an acquisition, at estimated fair value.  The cost for the rights of first-run and sports programming are recorded as the episodes and games are broadcast.  We do not record an asset and liability for such rights when the license period begins because the programming is not available for broadcast.  Certain of our agreements require us to provide barter advertising time to our distributors.  Barter advertising revenue and expense was $5,698, $4,990 and $4,552 in 2012, 2011 and 2010, respectively.

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JOURNAL COMMUNICATIONS, INC.

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS

December 30, 2012 (in thousands, except per share amounts)

1 SIGNIFICANT ACCOUNTING POLICIES continued

Property and equipment—Property and equipment are recorded at cost.  Depreciation of property and equipment is provided, using the straight-line method, over the estimated useful lives, which are as follows:

	Years
Building and land improvements	10
Buildings	30
Newspaper printing presses	25
Broadcasting equipment	5-20
Other printing presses	10
Other	3-10

Depreciation expense totaled $21,074, $21,764 and $22,697 in 2012, 2011 and 2010, respectively.

Capital leases—We charge amortization expense of assets recorded under capital leases to depreciation expense in our consolidated statements of operations and accumulated depreciation in our consolidated balance sheets.  At December 30, 2012 we recorded $1,834 for capital leases in equipment, $1,683 in accumulated depreciation, $54 in current portion of long-term liabilities and $113 in other long-term liabilities in our consolidated balance sheet.  At December 25, 2011 we recorded $1,884 for capital leases in equipment, $1,525 in accumulated depreciation, $258 in current portion of long-term liabilities and $166 in other long-term liabilities in our consolidated balance sheet.

Intangible assets—Indefinite-lived intangible assets, which consist of broadcast licenses and goodwill, are reviewed for impairment at least annually or more frequently if impairment indicators are present.  We continue to amortize definite-lived intangible assets on a straight-line basis over periods of five to 25 years.  The costs incurred to renew or extend the term of our broadcast licenses and certain customer relationships are expensed as incurred.  See Note 9, “Goodwill, Broadcast Licenses and Other Intangible Assets,” for additional disclosures on our intangible assets.

Notes receivable — We received a $450 secured note resulting from the sale of two radio stations in Boise, Idaho in September 2009.  Interest-only payments were due monthly and the principal balance of the note was due on September 25, 2014.  Principal payments totaling $50 were received in 2011 and 2010.  At December 25, 2011, the note receivable was $400 and reported in other assets in the condensed consolidated balance sheets.  In the third quarter of 2012, the remaining balance was paid.

In consideration for the sale of the Clearwater, Florida-based operations of PrimeNet in February 2010, we received a $700 promissory note repayable over four years and a $147 working capital note repayable over three years.  At the time of the sale, we recorded receivables of $587 and $129, respectively, representing the fair value of the notes discounted at 6.785% and 9.08%, respectively.  At December 25, 2011, the notes receivables balances were $433 and $51, respectively, and reported in receivables, net in the consolidated balance sheets.  In 2012, both notes were paid in full.  

In partial consideration for the sale of certain publishing assets of Journal Community Publishing Groups, Inc. in December 2012, we received a $772 promissory note bearing interest at 3% and repayable over three years.  At the time of the sale, we recorded a $738 receivable representing the estimated fair value of the note discounted at 6.25%.  These fair value measurements fall within Level 2 of the fair value hierarchy.

Interest income and the unamortized discount on our notes receivable are recorded using the effective interest method.

Impairment of long-lived assets—Property and equipment and other definite-lived intangible assets are reviewed for impairment whenever events or changes in circumstances indicate that the carrying amount may not be recoverable.  If an asset is considered impaired, a charge is recognized for the difference between the fair value and carrying value of the asset or group of assets.  Such analyses necessarily involve significant judgment.  In 2012, we recorded property impairment charges of $368 and $125 at our broadcasting segment and publishing segment, respectively, representing the excess of indicated fair value over the carrying value of the assets held for sale.  Fair value was determined pursuant to a broker’s opinion of the value based upon similar assets in an inactive market.  This fair value measurement is considered a level 2 measurement under the fair value hierarchy.  We recorded a property impairment loss of $1,802 at our broadcasting segment in 2010 representing the excess of indicated fair value over the carrying value of assets held for sale.  Fair value was determined pursuant to a broker’s opinion of value based upon similar assets in an inactive market.  This fair value measurement is considered a level 2 measurement under the fair value hierarchy.  The charges are reported in selling and administrative expenses in the consolidated statement of operations.

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JOURNAL COMMUNICATIONS, INC.

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS

December 30, 2012 (in thousands, except per share amounts)

1 SIGNIFICANT ACCOUNTING POLICIES continued

Share Repurchases—Shares repurchased under our July 2011 share repurchase program remain authorized but unissued.  The cost of the class A shares repurchased under the program was greater than par value and we recorded a charge to par value and additional paid in capital.  On August 13, 2012, we repurchased all 3,264 outstanding shares of our class C common stock, including all rights associated with such shares of class C common stock.

Earnings per share

Basic

For all periods during which our class C common stock was issued and outstanding (see Note 2 “Notes Payable” regarding the Company’s repurchase of all 3,264 shares of the Company’s class C common stock issued and outstanding), we apply the two-class method for calculating and presenting our basic earnings per share.  As noted in the FASB’s guidance for earnings per share, the two-class method is an earnings allocation formula that determines earnings per share for each class of common stock according to dividends declared (or accumulated) and participation rights in undistributed earnings.  Under that method:

(a) Income (loss) from continuing operations (“net earnings (loss)”) is reduced by the amount of dividends declared in the current period for each class of stock and by the contractual amount of dividends that must be paid or accrued during the current period.

(b) The remaining earnings, which may include earnings from discontinued operations (“undistributed earnings”), are allocated to each class of common stock to the extent that each class of stock may share in earnings if all of the earnings for the period were distributed.

(c) The remaining losses (“undistributed losses”) are allocated to the class A and B common stock.  Undistributed losses are not allocated to the class C common stock and non-vested restricted stock because the class C common stock and the non-vested restricted stock are not contractually obligated to share in the losses. Losses from discontinued operations are allocated to class A and B common stock and may be allocated to class C common stock and non-vested restricted stock if there is undistributed earnings after deducting earnings distributed to class C common stock from income from continuing operations.

(d) The total earnings (loss) allocated to each class of common stock are then divided by the number of weighted average shares outstanding of the class of common stock to which the earnings (loss) are allocated to determine the earnings (loss) per share for that class of common stock.

(e) Basic earnings (loss) per share data are presented for class A and B common stock in the aggregate and for class C common stock.  The basic earnings (loss) per share for class A and B common stock are the same; hence, these classes are reported together.

In applying the two-class method, we have determined that undistributed earnings should be allocated equally on a per share basis among each class of common stock due to the lack of any contractual participation rights of any class to those undistributed earnings.  Undistributed losses are allocated to only the class A and B common stock for the reason stated above.

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JOURNAL COMMUNICATIONS, INC.

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS

December 30, 2012 (in thousands, except per share amounts)

1 SIGNIFICANT ACCOUNTING POLICIES continued

The following table sets forth the computation of basic earnings per share under the two-class method:

	2012			2011		2010
Numerator for basic earnings from continuing operations for each class of common stock and non-vested restricted stock:
Earnings form continuing operations	$	33,325		$	21,845	$	30,678
Less dividends:
Class A and B		-			-		-
Minimum class C		1,146			1,854		1,854
Non-vested restricted stock		-			-		-
Total undistributed earnings from continuing operations	$	32,179		$	19,991	$	28,824
Undistributed earnings from continuing operations:
Class A and B	$	30,701		$	18,546	$	26,634
Class C		1,261			1,186		1,712
Non-vested restricted stock		217			259		478
Total undistributed earnings from continuing operations	$	32,179		$	19,991	$	28,824
Numerator for basic earnings from continuing operations per class A and B common stock:
Minimum dividends on class A and B	$	-		$	-	$	-
Class A and B undistributed earnings		30,701			18,546		26,634
Numerator for basic earnings from continuing operations per class A and B common stock	$	30,701		$	18,546	$	26,634
Numerator for basic earnings from continuing operations per class C common stock:
Minimum dividends on class C	$	1,146		$	1,854	$	1,854
Class C undistributed earnings		1,261			1,186		1,712
Numerator for basic earnings from continuing operations per class C common stock	$	2,407		$	3,040	$	3,566
Denominator for basic earnings from continuing operations for each class of common stock:
Weighted average shares outstanding -
Class A and B		50,091			51,088		50,789
Class C		3,264	(1)		3,264		3,264
Basic earnings per share from continuing operations:
Class A and B	$	0.61		$	0.36	$	0.52
Class C	$	0.74		$	0.93	$	1.09

(1)  The weighted average number of shares is calculated only for the period of time which the class C common stock was outstandingduring the period, not the entire period.

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JOURNAL COMMUNICATIONS, INC.

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS

December 30, 2012 (in thousands, except per share amounts)

1 SIGNIFICANT ACCOUNTING POLICIES continued

	2012			2011		2010
Numerator for basic earnings from discontinued operations for each class of common stock and non-vested restricted stock:
Total undistributed earnings from discontinued operations	$	-		$	341	$	3,703
Undistributed earnings from discontinued operations:
Class A and B	$	-			316	$	3,422
Class C		-			20	$	220
Non-vested restricted stock		-			5	$	61
Total undistributed earnings from discontinued operations	$	-			341	$	3,703
Denominator for basic earnings from discontinued operations for each class of common stock:
Weighted average shares outstanding -
Class A and B		50,091			51,088		50,789
Class C		3,264	(1)		3,264		3,264
Basic earnings per share from discontinued operations:
Class A and B	$	-		$	0.01	$	0.07
Class C	$	-		$	0.01	$	0.07
Numerator for basic net earnings for each class of common stock:
Net earnings	$	33,325		$	22,186	$	34,381
Less dividends:
Class A and B		-			-		-
Minimum class C		1,146			1,854		1,854
Non-vested restricted stock		-			-		-
Total undistributed net earnings	$	32,179		$	20,332	$	32,527
Undistributed net earnings:
Class A and B	$	30,701		$	18,862	$	30,056
Class C		1,261			1,206		1,932
Non-vested restricted stock		217			264		539
Total undistributed net earnings	$	32,179		$	20,332	$	32,527
Numerator for basic net earnings per class A and B common stock:
Dividends on class A and B	$	-		$	-	$	-
Class A and B undistributed  net earnings		30,701			18,862		30,056
Numerator for basic net earnings per class A and B common stock	$	30,701		$	18,862	$	30,056

(1)  The weighted average number of shares is calculated only for the period of time which the class C common stock was outstandingduring the period, not the entire period.

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JOURNAL COMMUNICATIONS, INC.

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS

December 30, 2012 (in thousands, except per share amounts)

1 SIGNIFICANT ACCOUNTING POLICIES continued

	2012			2011		2010
Numerator for basic net earnings per class C common stock:
Minimum dividends on class C	$	1,146		$	1,854	$	1,854
Class C undistributed net earnings		1,261			1,206		1,932
Numerator for basic net earnings per class C common stock	$	2,407		$	3,060	$	3,786
Denominator for basic net earnings for each class of common stock:
Weighted average shares outstanding -
Class A and B		50,091			51,088		50,789
Class C		3,264	(1)		3,264		3,264
Basic net earnings per share:
Class A and B	$	0.61		$	0.37	$	0.59
Class C	$	0.74		$	0.94	$	1.16

(1)  The weighted average number of shares is calculated only for the period of time which the class C common stock was outstanding during the period, not the entire period.

Diluted

Diluted earnings per share is computed based upon the assumption that common shares are issued upon exercise of our stock appreciation rights when the exercise price is less than the average market price of our common shares and common shares will be outstanding upon expiration of the vesting periods for our non-vested restricted stock and performance-based restricted stock units.  For the year ended December 30, 2012, 615 non-vested restricted class B common shares and performance-based restricted stock units are not included in the computation of diluted earnings per share because they are anti-dilutive.  For the year ended December 25, 2011, 657 non-vested restricted class B common shares are not included in the computation of diluted earnings per share because they are anti-dilutive.  The class C shares are not converted into class A and B shares because they are anti-dilutive for all periods presented, and therefore are not included in the diluted weighted average shares outstanding.

The following table sets forth the computation of diluted net earnings (loss) per share for class A and B common stock:

	2012		2011		2010
Numerator for diluted net earnings per share:
Dividends on class A and B common stock	$	-	$	-	$	-
Total undistributed earnings from continuing operations		30,701		18,546		26,634
Total undistributed earnings from discontinued operations		-		316		3,422
Net earnings	$	30,701	$	18,862	$	30,056
Denominator for diluted net earnings per share:
Weighted average shares outstanding		50,091		51,088		50,789
Diluted earnings per share:
Continuing operations	$	0.61	$	0.36	$	0.52
Discontinued operations		-		0.01		0.07
Net earnings	$	0.61	$	0.37	$	0.59

Diluted earnings per share for the class C common stock is the same as basic earnings per share for the class C common stock because there are no class C common stock equivalents.

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JOURNAL COMMUNICATIONS, INC.

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS

December 30, 2012 (in thousands, except per share amounts)

1  SIGNIFICANT ACCOUNTING POLICIES continued

Prior to the repurchase of the class C common stock, each of the 3,264 class C shares outstanding was convertible at any time at the option of the holder into either (i) 1.363970 class A shares (or a total of 4,452 class A shares) or (ii) 0.248243 class A shares (or a total of 810 class A shares) and 1.115727 class B shares (or a total of 3,642 class B shares).

New accounting standards

In February 2013, the FASB issued guidance related to items reclassified from accumulated other comprehensive income.  The new guidance requires either in a single note or parenthetically on the face of the financial statements: (i) the effect of significant amounts reclassified from each component of accumulated other comprehensive income based on its source and (ii) the income statement line items affected by the reclassification. This guidance is effective for fiscal years beginning January 1, 2013 with early adoption permitted.  We do not expect the adoption of this guidance to have a material impact on our consolidated financial statements.

In July 2012, the Financial Accounting Standards Board (FASB) issued amended guidance for impairment of indefinite-lived intangible assets.  The guidance allows for an option to first assess qualitative factors to determine whether the existence of events or circumstances leads to a determination that it is more likely than not that the fair value of the indefinite-lived intangible asset exceeds its carrying amount.  If the qualitative factors lead us to conclude it is more likely than not that the fair value exceeds the carrying value of the indefinite-lived intangible asset, then the fair value does not need to be calculated.  This update is effective for annual and interim impairment tests performed for the fiscal years beginning after September 15, 2012, with early adoption permitted.  We adopted this guidance in 2012.

In September 2011, the FASB issued amended guidance for goodwill impairment.  The guidance simplifies how entities test goodwill for impairment.  The new guidance allows an entity to first assess qualitative factors to determine whether it is necessary to perform the two-step quantitative goodwill impairment test.  Under these amendments, an entity will be required to perform the two-step impairment test only if it concludes that the fair value of a reporting unit is more likely than not, less than its carrying value.  This guidance is effective for fiscal years, and interim periods within those years, beginning after December 15, 2011, with early adoption permitted.  We adopted this guidance in the first quarter of 2012.

In June 2011, the FASB issued amended guidance for comprehensive income.  The guidance requires an entity to present the total of comprehensive income, the components of net income and the components of other comprehensive income either in a single continuous statement of comprehensive income or in two separate but consecutive statements.  The new guidance eliminates the option to present the components of other comprehensive income as part of the statement of shareholders’ equity.  Subsequently, in December 2011, the FASB issued its final standard to defer the new requirement to present components of reclassifications of other comprehensive income on the face of the income statement.  The other requirements contained in the new standard on comprehensive income must still be adopted by the FASB.  This guidance is effective for fiscal years, and interim periods within those years, beginning after December 15, 2011, with early adoption permitted.  We adopted this guidance in the first quarter of 2012 and opted to present the total of comprehensive income in two separate but consecutive statements.

In May 2011, the FASB issued amended guidance for fair value measurement and disclosure requirements between U.S. generally accepted accounting principles and International Financial Reporting Standards (IFRS).  The new guidance includes amendments to clarify the definition of fair value and ensure that the fair value measurement and disclosure requirements are similar between U.S. generally accepted accounting principles and IFRS.  The guidance also changes certain fair value measurement principles and enhances the disclosure requirements particularly for level 3 fair value measurements.  This guidance is effective for fiscal years, and interim periods within those years, beginning after December 15, 2011.  We adopted this guidance in the first quarter of 2012.

2  NOTES PAYABLE

Long-term Notes Payable to Banks

On December 5, 2012, we entered into an amended and restated credit agreement for a secured term loan facility and a secured revolving credit facility with aggregate commitments of $350,000, including the term loan commitment of $150,000 and the revolving credit facility commitment of $200,000, both of which mature on December 5, 2017.  The secured term loan facility amortizes at 10% per annum payable quarterly with the balance due at maturity.  As of December 30, 2012, the outstanding principal amount of revolving loans drawn under the credit agreement was $80,095, and the outstanding principal amount of term loans drawn under the credit agreement was $150,000.  The proceeds of the senior secured credit facilities were used for the acquisition of NewsChannel 5 Network, LLC and general corporate purposes.  Amounts under the secured revolving credit facility may be borrowed, repaid and reborrowed by us from time to time until the maturity date of the revolving loan facility.  Voluntary prepayments and commitment reductions are permitted at any time without fee upon proper notice and subject to a minimum dollar requirement.  Voluntary prepayments of the secured term loan facility represent a permanent reduction in credit available.  At our option, the commitments under the credit agreement may be increased from time to time to an aggregate amount not to exceed $450,000.  The increase option is subject to the satisfaction of certain conditions, including, without limitation, the identification of lenders (which may include existing lenders or new lenders) willing to provide the additional commitments.

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NOTES TO CONSOLIDATED FINANCIAL STATEMENTS

December 30, 2012 (in thousands, except per share amounts)

2  NOTES PAYABLE continued

Our borrowings under the credit agreement incur interest at either (a) LIBOR plus a margin that ranges from 150.0 basis points to 250.0 basis points, depending on our net debt ratio, or (b) (i) the base rate, which equals the highest of the prime rate set by U.S. Bank National Association, the Federal Funds Rate plus 50.0 basis points or one-month LIBOR plus 100.0 basis points, plus (ii) a margin that ranges from 50.0 basis points to 150.0 basis points, depending on our net debt ratio.  The initial pricing spread above LIBOR was 225.0 basis points.

Our obligations under the credit agreement are currently guaranteed by certain of our domestic subsidiaries.  Subject to certain exceptions, the credit agreement is secured by liens on certain of our assets and contains affirmative, negative and financial covenants which are customary for financings of this type, including, among other things, limits on the creation of liens, limits on the incurrence of indebtedness, restrictions on dispositions and restrictions on the payment of dividends.  The senior secured credit facilities contains the following financial covenants which remain constant over the term of the agreement:

· A consolidated funded debt ratio of not greater than 3.75-to-1, as of the end of each fiscal quarter, as determined for the four fiscal quarters then ended.  This ratio compares, as of the date of determination, our consolidated funded debt on such date to consolidated EBITDA, defined in the credit agreement as earnings before interest, taxes, depreciation, amortization, restructuring charges, gains/losses on asset disposals, non-cash charges and certain other adjustments.

· A minimum interest coverage ratio of not less than 3-to-1, as of the end of each fiscal quarter, as determined for the four fiscal quarters then ended.  This ratio compares, for any period, our consolidated EBITDA, defined in the credit agreement as earnings before interest, taxes, depreciation, amortization, restructuring charges, gains/losses on asset disposals, non-cash charges and certain other adjustments.

As of December 30, 2012 and December 25, 2011, we had borrowings of $230,095 and $41,305, respectively, under our credit facilities at a currently effective blended interest rate of 2.53% and 2.65%, respectively.  Fees in connection with the credit facilities of $4,727 which are included in other assets, are being amortized over the term of the senior secured credit facilities using the straight-line method.

We estimate the fair value of our senior secured credit facilities at December 30, 2012 to be $224,752, based on discounted cash flows using an interest rate of 3.08%.  We estimated the fair value of our secured credit facility at December 25, 2011 to be $40,988, based on discounted cash flows using an interest rate of 3.05%.  Interest rates utilized are estimated based on observed market rates of interest for debt with similar maturities and seniority.  These fair value measurements fall within Level 2 of the fair value hierarchy.

Scheduled minimum principal repayments of the secured term loan facility are $11,250 in 2013, $15,000 in 2014, $15,000 in 2015, $15,000 in 2016 and $93,750 thereafter.

Unsecured Subordinated Notes Payable

On August 13, 2012, we repurchased all 3,264 outstanding shares of our class C common stock, including all rights associated with such shares of class C common stock, in exchange for $6,246 in cash and the issuance of 15 unsecured subordinated promissory notes with an aggregate principal amount of $25,599 and bearing interest at a rate of 7.25% per annum.  The cash payment equaled the amount of the minimum unpaid and undeclared dividend on the class C common stock through August 12, 2012.

The aggregate principal amount of the subordinated notes was determined by multiplying the volume weighted average price of our class A common stock on the New York Stock Exchange over the five consecutive trading days ending on (and including) August 10, 2012 of $5.75 by the number of fully diluted shares of class C common stock (each class C share was convertible into 1.363970 shares of class A common stock pursuant to our amended and restated articles of incorporation for a total of 4,452 shares on a class A-equivalent basis).

One subordinated note of $1,340 was repaid in full on September 21, 2012.  Six of the remaining subordinated notes, with an aggregate principal amount of $8,324, were paid on December 21, 2012.  The remaining eight subordinated notes, with an aggregate principal amount of approximately $15,935, are payable in six equal annual installments on September 30 of each of 2013, 2014, 2015, 2016, 2017 and 2018, with no prepayment right.  Interest on the notes is payable quarterly.

We estimate the fair value of the subordinated notes to be $16,188 based on discounted cash flows using an interest rate of 7.26%, which falls within Level 2 of the fair value hierarchy.  Interest rates utilized are estimated based on observed market rates of interest for debt with similar maturities and seniority.  As of December 30, 2012, $15,935 of the subordinated notes remains outstanding.

Scheduled minimum principal repayments of the unsecured subordinated notes payable are $2,656 in 2013, $2,656 in 2014, $2,656 in 2015, $2,656 in 2016 and $5,311 thereafter.

68

JOURNAL COMMUNICATIONS, INC.

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS

December 30, 2012 (in thousands, except per share amounts)

3  EMPLOYEE BENEFIT PLANS

We have a defined benefit pension plan covering certain employees.  The plan provides benefits based on years of service and the average compensation for the employee’s last five years of employment.  Plan assets consist primarily of listed stocks and government and other bonds.

We also sponsor an unfunded non-qualified pension plan for certain employees whose benefits under the pension plan and the 401(k) plan may be restricted due to limitations imposed by the Internal Revenue Service.  The disclosure for the unfunded non-qualified pension plan for all years presented is combined with the defined benefit pension plan.

In addition, we provide postretirement health benefits to certain retirees and their eligible spouses and certain full-time active employees who did not attain age 50 by December 31, 2006.  Full-time active employees who retire after April 1, 2007 do not receive an employer contribution for health benefits after attaining age 65.  Due to certain plan changes, we do not expect the plan will qualify for actuarial equivalent pharmaceutical benefits under the Medicare Part D federal subsidy.

							Other
	Pension Benefits						Postretirement Benefits
Years ended December 30 and December 25	2012			2011			2012			2011
Change in benefit obligations
Benefit obligation at beginning of year	$	171,028		$	151,151		$	17,274		$	17,342
Service cost		-			-			14			53
Interest cost		7,578			7,850			630			827
Actuarial loss		12,322			20,941			(2,010	)		1,009
Benefits paid		(8,924	)		(8,914	)		(1,300	)		(1,957	)
Benefit obligation at end of year	$	182,004		$	171,028		$	14,608		$	17,274

							Other
	Pension Benefits						Postretirement Benefits
Years ended December 30 and December 25	2012			2011			2012			2011
Change in plan assets
Fair value of plan assets at beginning of year	$	96,699		$	109,103		$	-		$	-
Actual gain (loss) on plan assets		11,672			(3,865	)		-			-
Company contributions		3,155			375			1,300			1,957
Benefits paid		(8,924	)		(8,914	)		(1,300	)		(1,957	)
Fair value of plan assets at end of year	$	102,602		$	96,699		$	-		$	-
Funded status	$	(79,402	)	$	(74,329	)	$	(14,608	)	$	(17,274	)

							Other
	Pension Benefits						Postretirement Benefits
Years ended December 30 and December 25	2012			2011			2012			2011
Acounts recognized in consolidated balance sheets
Current liabilities	$	(476	)	$	(489	)	$	(1,645	)	$	(1,850	)
Noncurrent liabilities		(78,926	)		(73,840	)		(12,963	)		(15,424	)
Total	$	(79,402	)	$	(74,329	)	$	(14,608	)	$	(17,274	)

	Pension Benefits
			Prior			Deferred
	Actuarial		Service			Income
	Loss, Net		Credit			Taxes			Total
Amounts recognized in accumulated other comprehensive loss
As of December 25, 2011	$	86,151	$	(58	)	$	(34,268	)	$	51,825
Current year change		7,066		10			(2,784	)	$	4,292
As of December 30, 2012	$	93,217	$	(48	)	$	(37,052	)	$	56,117

69

JOURNAL COMMUNICATIONS, INC.

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS

December 30, 2012 (in thousands, except per share amounts)

3  EMPLOYEE BENEFIT PLANS continued

	Other Postretirement Benefits
	Actuarial			Prior						Deferred
	Loss			Service			Transition			Income
	(Gain), Net			Credit			Obligation			Taxes			Total
Amounts recognized in accumulated other comprehensive loss
As of December 25, 2011	$	2,381		$	(1,002	)	$	546		$	(768	)	$	1,157
Current year change		(2,198	)		219			(546	)		990		$	(1,535	)
As of December 30, 2012	$	183		$	(783	)	$	-		$	222		$	(378	)

The accumulated benefit obligation for the pension plans was $182,004 and $171,028 at December 30, 2012 and December 25, 2011, respectively.

	Pension Benefits
Years ended December 30, December 25 and December 26	2012			2011			2010
Components of net periodic benefit cost
Service cost	$	-		$	-		$	-
Interest cost		7,578			7,850			8,197
Expected return on plan assets		(8,454	)		(9,594	)		(10,224	)
Curtailment gain		-			-			(1,109	)
Amortization of:
Unrecognized prior service credit		(10	)		(10	)		(131	)
Unrecognized net loss		2,038			979			3,080
Net periodic benefit cost included in operating costs and expenses and selling and administrative expenses	$	1,152		$	(775	)	$	(187	)

On October 12, 2010, our board of directors approved an amendment to our qualified defined benefit pension plan to permanently suspend the plan and permanently cease all benefit accruals under the plan effective January 1, 2011 for all active participants, except for any employee covered by a collective bargaining agreement which requires us to bargain over the permanent suspension of the plan accruals. The accrual of plan benefits had been temporarily suspended from July 1, 2009 through December 31, 2010. For those bargaining unit participants, the temporary suspension of plan accruals was extended until December 31, 2012.

We also permanently suspended the unfunded non-qualified plan, which provided additional benefits to certain employees whose benefits under the pension plan and 401(k) plan were restricted due to limitations imposed by the Internal Revenue Service.

The reduction of benefits under the qualified defined benefit pension plan and the unfunded non-qualified plan resulted in a curtailment gain of $1,109 in 2010.  In addition, due to the amendments for these pension plans, plan assets and obligations were remeasured.

	Other Postretirement Benefits
Years ended December 30, December 25 and December 26	2012			2011			2010
Components of net periodic benefit cost
Service cost	$	14		$	53		$	85
Interest cost		630			827			951
Amortization of:
Unrecognized prior service credit		(219	)		(219	)		(219	)
Unrecognized net transition obligation		546			549			549
Unrecognized net loss		188			-			-
Net periodic benefit cost included in selling and administrative expenses	$	1,159		$	1,210		$	1,366

The unrecognized net loss and prior service credit for the defined benefit pension plans that is expected to be amortized from accumulated other comprehensive income into net periodic benefit cost over the next fiscal year is $2,787 and ($10), respectively.  The prior service credit and transition obligation for the other postretirement pension plan that is expected to be amortized from other accumulated comprehensive income into net periodic benefit cost over the next fiscal year is ($219) and $0, respectively.

70

JOURNAL COMMUNICATIONS, INC.

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS

December 30, 2012 (in thousands, except per share amounts)

3  EMPLOYEE BENEFIT PLANS continued

The costs for our pension benefits and other postretirement benefits are actuarially determined.  Key assumptions utilized at the measurement dates of December 30, 2012 and December 25, 2011 for pension benefits and for other postretirement benefits include the following:

Weighted-average assumptions used to determine benefit obligations:

							Other
	Pension Benefits						Postretirement Benefits
December 30 and December 25	2012			2011			2012			2011
Discount rate		3.95	%		4.55	%		2.75	%		3.85	%
Rate of compensation increases		-			-			-			-

Weighted-average assumptions used to determine net periodic benefit cost:

										Other
	Pension Benefits									Postretirement Benefits
December 30, December 25 and December 26	2012			2011			2010			2012			2011			2010
Discount rate		4.55	%		5.35	%		5.70/4.70	%		3.85	%		4.95	%		5.50	%
Expected return on plan assets		7.75			8.25			8.50/8.25			-			-			-
Rate of compensation increases		-			-			4.80			-			-			-

Due to the amendments to the pension plans, the measurement of the net periodic benefit cost from the beginning of 2010 through October 12, 2010 was based upon a 5.70% discount rate and an 8.50% expected rate of return on plan assets.  The measurement of the net periodic pension benefit cost from the amendment date to the end of 2010 was based upon a 4.70% discount rate and an 8.25% expected rate of return on plan assets.

To determine the discount rate assumptions for the pension and the postretirement benefit plans, we studied our plans’ specific discount rate by matching our projected benefit payments to a yield curve developed from high grade corporate bonds.  The results of those studies were used as the benchmark to determine the discount rate assumptions.

We studied historical markets to determine the long-term rate of return assumption for plan assets.  We preserved the long-term historical relationships between equities and fixed-income securities, consistent with the widely accepted capital market principle that assets with higher volatility generate a greater return over the long run.  We evaluate current market factors such as inflation and interest rates before we determine long-term capital market assumptions.  We review peer data and historical returns to check for reasonableness and appropriateness.  We anticipate our expected rate of return on plan assets assumption to be 7.25% for our 2013 valuation.

The assumed health care cost trend rate used in measuring the postretirement benefit obligation for retirees for 2012 is 9.50%, grading down to 5.00% in the year 2021 and thereafter.  The assumed health care cost trend rates have a significant effect on the amounts reported for other postretirement benefits.  A 1% change in the assumed health care cost trend rate would have the following effects:

	1%		1%
	Increase		Decrease
Effect on total of service and interest cost components in 2013	$	83	$	(78	)
Effect on postretirement benefit obligation as of December 30, 2012	$	223	$	(215	)

Plan Assets

The following tables present the fair value of our plan assets by level of the fair value hierarchy.  In accordance with the FASB’s guidance for fair value measurements, level 1 inputs are quoted prices in active markets for identical assets; level 2 inputs are significant other observable inputs; and level 3 inputs are significant unobservable inputs.

71

JOURNAL COMMUNICATIONS, INC.

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS

December 30, 2012 (in thousands, except per share amounts)

3  EMPLOYEE BENEFIT PLANS continued

	Level 1		Level 2		Level 3
	Inputs		Inputs		Inputs		Total
December 30, 2012
Cash	$	715	$	-	$	-	$	715
Mutual funds		89,430		-		-		89,430
Money-market fund		7		-		-		7
Collective trust fund		-		12,450		-		12,450
		90,152		12,450		-		102,602
Unsettled trades of common stock		-		-		-		-
Fair value of plan assets	$	90,152	$	12,450	$	-	$	102,602
	Level 1		Level 2		Level 3
	Inputs		Inputs		Inputs		Total
December 25, 2011
Common stocks	$	-	$	9,503	$	-	$	9,503
Mutual funds		74,665		-		-		74,665
Money-market fund		455		-		-		455
Collective trust fund		-		12,018		-		12,018
		75,120		21,521		-		96,641
Unsettled trades of common stock		-		58		-		58
Fair value of plan assets	$	75,120	$	21,579	$	-	$	96,699

Our pension plan weighted average asset allocations at December 30, 2012 and December 25, 2011 by asset category are as follows:

	Plan Assets
December 30 and December 25	2012			2011
Equity securities		65.2	%		69.1	%
Fixed-income securities		34.9			30.4
Other		(0.1	)		0.5
Total		100.0	%		100.0	%

We employ a total return investment approach whereby a mix of equity and fixed-income investment funds are used to maximize the long-term return of plan assets for a prudent level of risk.  We establish our risk tolerance through careful consideration of plan liabilities, plan funded status and our financial condition.  The investment portfolio contains a diversified blend of equity and debt investments.  The equity component is diversified across U.S. and non-U.S. stocks, as well as growth, value and small and large capitalization stocks.  The fixed-income component is diversified across the maturity, quality and sector spectrum.  The portfolio may also hold cash equivalents.  Fund managers may use derivatives only if the vehicle is deemed by the manager to be more attractive than a similar direct investment in the underlying cash market, or if the vehicle is being used to manage risk of the portfolio.  Derivatives, however, may not be used in a speculative manner or to leverage the portfolio.  We measure and monitor investment risk on an ongoing basis through quarterly investment portfolio reviews, annual liability measurements and periodic asset/liability allocation studies.  The asset mix guidelines for the plan are as follows:

	Percent of Total Portfolio
	Minimum			Target			Maximum
Large capitalization U.S. stocks		30.0	%		35.0	%		40.0	%
Small capitalization U.S. stocks		15.0			20.0			25.0
International stock		10.0			15.0			20.0
Fixed-income securities		20.0			25.0			35.0
Cash equivalents		-			5.0			5.0

72

JOURNAL COMMUNICATIONS, INC.

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS

December 30, 2012 (in thousands, except per share amounts)

3  EMPLOYEE BENEFIT PLANS continued

Contributions

We fund our defined benefit pension plan at the minimum amount required by the Pension Protection Act of 2006.  During 2012, we contributed $2,768 to our qualified defined benefit pension plan and non-qualified pension plan, respectively.  Based on the most recent current projections and after giving effect to our election under the recently enacted Moving Ahead for Progress in the 21st Century Act (MAP-21) pension legislation, we expect to contribute $910 to our qualified defined benefit pension plan in 2013.  We expect to contribute $476 to our unfunded non-qualified pension plan in 2013.

Benefit Payments

The following benefit payments, which reflect expected future service, as appropriate, are expected to be paid with future contributions to the plan or directly from plan assets, as follows:

			Other
	Pension		Postretirement
	Benefits		Benefits
2013	$	9,194	$	1,645
2014		9,411		1,585
2015		9,644		1,538
2016		9,787		1,479
2017		9,935		1,447
2018-2022		51,948		5,667

The 401(k) plan is a defined contribution benefit plan covering substantially all employees.  The plan allows employees to defer up to 50% of their eligible wages, up to the IRS limit, on a pre-tax basis.  In addition, employees can contribute up to 50% of their eligible wages after taxes.  The maximum combined total contribution may not exceed 50% of each employee’s eligible wages.  Each employee who elects to participate is eligible to receive company matching contributions.  Prior to the suspension of our matching contributions in February 2009, we contributed $0.50 for each dollar contributed by the participant, up to 5% of their eligible wages, for a maximum match of 2.5% of eligible wages, as defined by the 401(k) plan.  The matching contributions, recorded as an operating expense, were $1,979, $2,070, and $0 in 2012, 2011, and 2010, respectively.  Effective January 1, 2011, the matching contribution to our 401(k) plan was enhanced and we contribute $0.50 for each dollar contributed by the 401(k) participant, up to 7% of their eligible wages, for a maximum match of 3.5% of eligible wages, as defined by the 401(k) plan.

Prior to 2010, we made additional contributions into the 401(k) on behalf of certain employees not covered by the defined benefit pension plan and for employees who elected to freeze their defined pension benefits under our Annual Employer Contribution (AEC) plan.  In March 2009, our board of directors approved an amendment to our 401(k) plan to suspend the AEC contribution for all active employees for 18 months beginning July 1, 2009.  Our 401(k) plan was further amended on October 12, 2010.  Effective January 1, 2011, the AEC is no longer a component of the 401(k) plan.

73

JOURNAL COMMUNICATIONS, INC.

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS

December 30, 2012 (in thousands, except per share amounts)

4  INCOME TAXES

The components of the provision (benefit) for income taxes consist of the following:

Years ended December 30, December 25 and December 26	2012		2011		2010
Continuing operations
Current:
Federal	$	5,080	$	1,583	$	8,498
State		283		958		1,963
Total current		5,363		2,541		10,461
Deferred:
Federal		13,445		10,236		8,248
State		3,398		1,635		356
Total deferred		16,843		11,871		8,604
Total provision for income taxes for continuing operations	$	22,206	$	14,412	$	19,065
Discontinued operations
Current:
Federal	$	-	$	174	$	2,465
State		-		37		278
Total current		-		211		2,743
Deferred:
Federal		-		10		(459	)
State		-		-		36
Total deferred		-		10		(423	)
Total provision (benefit) for income taxes for discontinued operations	$	-	$	221	$	2,320

The significant differences between the statutory federal income tax rates and the effective income tax rates are as follows:

Years ended December 30, December 25 and December 26	2012			2011			2010
Statutory federal income tax rate		35.0	%		35.0	%		35.0	%
State income taxes, net of federal tax benefit		5.0			5.1			4.8
Revaluation of deferred taxes due to sale of printing services business		-			-			(1.5	)
Other		-			(0.3	)		0
Effective income tax (benefit) rate		40.0	%		39.8	%		38.3	%

74

JOURNAL COMMUNICATIONS, INC.

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS

December 30, 2012 (in thousands, except per share amounts)

4  INCOME TAXES continued

Temporary differences that give rise to the deferred tax assets and liabilities at December 30, 2012 and December 25, 2011 are as follows:

	2012			2011
Current assets
Receivables	$	737		$	655
Inventories		32			17
Other assets		666			658
Accrued compensation		737			946
Accrued state taxes		-			166
Accrued employee benefits		998			1,151
Total current deferred tax assets		3,170			3,593
Current liabitites
Accrued state taxes		(117	)		-
Total current deferred tax liability		(117	)		-
Total net current deferred tax assets	$	3,053		$	3,593
Non-current assets
Accrued employee benefits	$	34,446		$	33,394
State deferred income taxes		4,533			6,277
State net operating loss		2,122			2,410
Intangible assets		21,664			30,208
Other assets		278			176
Total non-current deferred tax assets		63,043			72,465
Non-current liabilities
Property and equipment		(19,729	)		(15,172	)
Valuation allowances		(199	)		(57	)
Other liabilities		(96	)		-
Total non-current deferred tax assets		(20,024	)		(15,229	)
Total net non-current deferred tax assets	$	43,019		$	57,236

We deduct broadcast licenses and tax-deductible goodwill over a period of 15 years from the date of acquisition.  The non-cash goodwill and broadcast license impairment charges recorded in 2012 and 2011 are not currently deductible for income tax purposes and have caused us to recognize a deferred tax asset.  We believe it is more likely than not that we will realize a tax benefit for our deferred tax assets and we believe that they will be utilized to offset future taxable income over the next 20 years in accordance with current income tax law.  In the future, we may be required to record a valuation allowance against our deferred tax assets if we have future operating losses or reductions in our expected future profitability which would cause us to believe we would be unable to utilize them.

At December 30, 2012, we have $2,122 of tax-effected state net operating loss carryforwards available to offset against future taxable income over the next 20 years.  The net operating losses begin expiring in 2014.  To the extent we believe it is more likely than not that certain of the net operating loss carryforwards will expire unused, we have recorded $4 in valuation allowances.  There are also $195 of capital loss carryforwards that will expire in 2017.  We have $195 in valuation allowances for these capital loss carryforwards due to uncertainties surrounding their use.

We file tax returns in the United States federal jurisdiction, as well as in approximately 15 state and local jurisdictions.  The statute of limitations for assessing additional taxes is three years for federal purposes and typically between three and four years for state and local purposes.  Accordingly, our 2009 through 2011 tax returns are open for federal purposes, and our 2008 through 2011 tax returns remain open for state tax purposes, unless the statute of limitations has been previously extended.  Currently, we are under audit by the IRS for our 2010 and 2011 tax returns, in Wisconsin for our 2004 through 2007 tax returns and Illinois for our 2006 and 2007 tax returns.

75

JOURNAL COMMUNICATIONS, INC.

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS

December 30, 2012 (in thousands, except per share amounts)

4  INCOME TAXES continued

As of December 30, 2012, our liability for unrecognized tax benefits was $762, which, if recognized, would have an impact on our effective tax rate.  As of December 30, 2012, it is reasonably possible for $102 of unrecognized tax benefits and related interest to be recognized within the next 12 months due to settlements with taxing authorities.

The following table summarizes the activity related to our unrecognized tax benefits during 2012, 2011 and 2010:

	2012			2011			2010
Beginning balance	$	885		$	913		$	1,058
Increases related to current year tax provisions		-			-			18
Increases due to prior year tax provisions		-			14			6
Decreases related to prior year tax provisions		-			(10	)		-
Decreases due to the expiration of statutes of limitations		(7	)		(32	)		(56	)
Decreases due to settlements		(116	)		-			(113	)
Ending Balance	$	762		$	885		$	913

We recognize interest income/expense and penalties related to unrecognized tax benefits in our provision for income taxes.  At December 30, 2012 and December 25 2011, we had $229 and $282, respectively, accrued for interest expense and penalties.  During 2012 and 2011, we recognized $29 and $51 of interest expense, respectively, related to unrecognized tax benefits.  Our liability for interest and penalties decreased by $82 due to settlements with taxing authorities.

5  COMMITMENTS AND CONTINGENCIES

We lease office space, certain broadcasting facilities, distribution centers, delivery vehicles and equipment under both short-term and long-term leases accounted for as operating leases.  Some of the lease agreements contain renewal options and rental escalation clauses, as well as provisions for the payment of utilities, maintenance and taxes.

As of December 30, 2012, our future minimum rental payments due under noncancellable operating lease agreements consist of the following:

	Due In
	Fiscal Year
2013	$	2,995
2014		2,026
2015		1,421
2016		807
2017		706
Thereafter		2,549
	$	10,504

76

JOURNAL COMMUNICATIONS, INC.

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS

December 30, 2012 (in thousands, except per share amounts)

5  COMMITMENTS AND CONTINGENCIES continued

Our publishing businesses lease print equipment and delivery trucks accounted for as capital leases.  As of December 30, 2012, our future minimum rental payments due under capital lease agreements consist of the following:

	Due In
	Fiscal Year
2013	$	54
2014		45
2015		47
2016		20
2017		-
	$	166

Rent expense charged to our continuing operations for 2012, 2011 and 2010 was $4,545, $4,207 and $5,038, respectively.  We amortize rent expense on a straight-line basis for leases with rent escalation clauses. Rental income from subleases included in our continuing operations for 2012, 2011 and 2010 was $218, $67, and $38, respectively.  There were no noncancellable subleases as of December 30, 2012.

At December 30, 2012, we had no purchase commitments at our broadcasting business related to building improvements.

We have $2,320 of standby letters of credit for business insurance purposes.

Over the next four years, we are committed to purchase and provide advertising time in the amount of $9,103 for television program rights that currently are not available for broadcast, including programs not yet produced. If such programs are not produced, our corresponding commitment would expire without obligation.

We provided a guarantee to the landlord of our former New England community newspapers and shopper business, which was sold in 2007, with respect to tenant liabilities and obligations associated with a lease which expires in December 2016. As of December 30, 2012, our potential obligation pursuant to the guarantee was $725, plus costs of collection, attorney fees and other charges incurred if the tenant defaults.  As part of the sales transaction, we received a guarantee from the parent entity of the buyer of our New England business that the buyer will satisfy all the liabilities and obligations of the assigned lease. In the event that the buyer fails to satisfy its liabilities and obligations and the landlord invokes our guarantee, we have a right to indemnification from the buyer’s parent entity.

6  SHAREHOLDERS’ EQUITY

On August 13, 2012, we repurchased all 3,264 outstanding shares of our class C common stock, including all rights associated with such shares of class C common stock.  In conjunction with the repurchase, we paid $6,246 in cash equal to the amount of the minimum unpaid and undeclared dividend on the class C common stock through August 12, 2012.  We currently have two classes of common stock outstanding.  At December 25, 2011, undeclared and unpaid class C dividends were $5,100 and were reported in other long-term liabilities in the consolidated balance sheets.

Class B shares are held by our current and former employees, our non-employee directors and Grant family shareholders.  These shares are entitled to ten votes per share, and are convertible to class A shares at the option of the holder after first offering to sell them to other eligible purchasers through the offer procedures set forth in our articles of incorporation.  Dividends on class B shares are equal to those declared on the class A shares.  Class A shares are publicly traded on the New York Stock Exchange under the symbol “JRN”. In 2011, we retired 8,677 class B shares that we held in our treasury. These shares are now designated as authorized and unissued.  The excess of the cost of treasury stock over its par value was allocated between retained earnings and paid-in capital.

77

JOURNAL COMMUNICATIONS, INC.

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS

December 30, 2012 (in thousands, except per share amounts)

6  SHAREHOLDERS’ EQUITY continued

The changes in the number of shares of our common stock (excluding Treasury stock) during 2012, 2011 and 2010 are as follows (in thousands):

	Common Stock
	Class C			Class B			Class A
Balance at December 27, 2009		3,264			9,642			41,783
Conversion of class B shares to class A shares		-			(1,413	)		1,413
Shares issued under equity incentive and employee stock purchase plans		-			366			-
Balance at December 26, 2010		3,264			8,595			43,196
Conversion of class B shares to class A shares		-			(1,683	)		1,683
Shares repurchased		-			-			(1,100	)
Shares issued under equity incentive and employee stock purchase plans		-			302			-
Balance at December 25, 2011		3,264			7,214			43,779
Conversion of class B shares to class A shares		-			(682	)		682
Shares repurchased		(3,264	)					(710	)
Shares issued under equity incentive and employee stock purchase plans		-			374			-
Balance at December 30, 2012		-			6,906			43,751

7  STOCK-BASED COMPENSATION

2007 Journal Communications, Inc. Omnibus Incentive Plan

The purpose of the 2007 Journal Communications, Inc. Omnibus Incentive Plan (2007 Plan) is to promote our success by linking personal interests of our employees, officers and non-employee directors to those of our shareholders, and by providing participants with an incentive for outstanding performance.  The 2007 Plan is also intended to enhance our ability to attract, motivate and retain the services of employees, officers and directors upon whose judgment, interest and special effort the successful conduct of our operation is largely dependent.

Subject to adjustment as provided in the 2007 Plan, the aggregate number of shares of class A common stock or class B common stock reserved and available for issuance pursuant to awards granted under the 2007 Plan is 4,800 shares which may be awarded in the form of nonstatutory or incentive stock options, stock appreciation rights, restricted stock, restricted or deferred stock units, performance awards, dividend equivalents or other stock-based awards.  The 2007 Plan also provides for the issuance of cash-based awards.  The 2007 Plan replaced the 2003 Equity Incentive Plan (2003 Plan) and, as of May 3, 2007, all equity grants are made from the 2007 Plan.  We will not grant any additional awards under the 2003 Plan.  As of December 30, 2012, there are 2,360 shares available for issuance under the 2007 Plan.

During the years ended December 30, 2012, December 25, 2011 and December 26, 2010, we recognized $2,056, $1,649 and $1,821, respectively, in stock-based compensation expense. During the year ended December 26, 2010, stock based compensation expense included $136 in the net gain from discontinued operations.  Total income tax benefit recognized related to stock-based compensation for the years ended December 30, 2012, December 25, 2011 and December 26, 2010 was $822, $656 and $698, respectively.  We recognize stock-based compensation expense on a straight-line basis over the service period based upon the fair value of the award on the grant date.  As of December 30, 2012, total unrecognized compensation cost related to stock-based awards was $2,038, net of estimated forfeitures, which we expect to recognize over a weighted average period of 1.2 years.  Stock-based compensation expense is reported in selling and administrative expenses and the net gain on discontinued operations in our consolidated statements of operations.

Stock grants

The compensation committee of our board of directors has granted class B common stock to employees and non-employee directors under our 2003 Plan and our 2007 Plan.  Each stock grant may have been accompanied by restrictions, or may have been made without any restrictions, as the compensation committee of our board of directors determined.  Such restrictions could have included requirements that the participant remain in our continuous employment for a specified period of time, or that we or the participant meet designated performance goals.  We value non-vested restricted stock grants at the closing market prices of our class A common stock on the grant date.

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JOURNAL COMMUNICATIONS, INC.

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS

December 30, 2012 (in thousands, except per share amounts)

7  STOCK-BASED COMPENSATION continued

A summary of stock grant activity during 2012 is:

				Weighted
				Average Grant
	Shares			Date Fair Value
Non-vested at December 25, 2011		657		$	3.89
Granted		382			5.12
Vested		(492	)		3.28
Forfeited		(9	)		4.91
Non-vested at December 30, 2012		538		$	5.30

Our non-vested restricted stock grants vest from one to four years from the grant date.  We expect our non-vested restricted stock grants to fully vest over the weighted average remaining service period of 1.2 years.  The total grant date fair value of shares vesting during 2012 was $1,613.  There was an aggregate of 368 unrestricted and non-vested restricted stock grants issued to our non-employee directors (101 shares) and employees (267 shares) in 2011 at a weighted average fair value of $5.63 per share, of which 185 shares are vested as of December 30, 2012 with a total grant date fair value of $1,003.  There were 427 unrestricted and non-vested restricted stock grants issued to our directors (106 shares) and employees (321 shares) during 2010 at a weighted average fair value of $4.36 per share, of which 336 shares are vested as of December 30, 2012 with a total grant date fair value of $1,128.

Performance Units

In the first quarter of 2012, the compensation committee of our board of directors approved the grant of performance-based restricted stock units (performance units) under our 2007 Plan, which represent the right to earn shares of class B common stock based on continued employment and the achievement of specified targets for adjusted cumulative EBITDA over the 2012 to 2014 fiscal year performance period.  We value performance unit awards at the closing market price of our class A common stock on the grant date.  In the first quarter of 2012, we granted 77 performance units at a weighted average fair value of $5.59. The actual number of performance units that vest will be determined at the end of the three year performance period. As of December 30, 2012, 77 performance units remain unvested.

Stock appreciation rights

A stock appreciation right, or SAR, represents the right to receive an amount equal to the excess of the fair value of a share of our class B common stock on the exercise date over the base value of the SAR, which shall not be less than the fair value of a share of our class B common stock on the grant date.  Each SAR is settled only in shares of our class B common stock.  The term during which any SAR may be exercised is 10 years from the grant date, or such shorter period as determined by the compensation committee of our board of directors.

Our SARs vest over a three year graded vesting schedule and it is our policy to recognize compensation cost for awards with graded vesting on a straight-line basis over the vesting period for the entire award.  We ensure the compensation cost recognized at any date is at least equal to the portion of the grant-date value of the award that is vested at that date.  The fixed price SARs have a fixed base value equal to the closing price of our class A common stock on the date of grant. The escalating price SARs have an escalating base value that starts with the closing price of our class A common stock on the date of  grant and increases by six percent per year for each year that the SARs remain outstanding, starting on the first anniversary of the grant date.

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JOURNAL COMMUNICATIONS, INC.

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS

December 30, 2012 (in thousands, except per share amounts)

7  STOCK-BASED COMPENSATION continued

A summary of SAR activity during 2012 is:
 

					Weighted
					Average
			Weighted		Contractual Term
			Average		Remaining
	SARS		Exercise Price		(years)
December 25, 2011
Outstanding and exercisable		1,083	$	10.71		5.6
December 30, 2012
Outstanding and exercisable		1,083	$	10.71		4.6

All SARs have vested.  The aggregate intrinsic value of the SARs outstanding and exercisable at the end of 2012 is zero because the fair market value of our class B common stock on December 30, 2012 was lower than the weighted average exercise price of the SARs.

Employee stock purchase plan

The 2003 Employee Stock Purchase Plan permits eligible employees to purchase our class B common stock at 90% of the fair market value measured as of the closing market price of our class A common stock on the day of purchase.  We recognize compensation expense equal to the 10% discount of the fair market value.  Subject to certain adjustments, 3,000 shares of our class B common stock are authorized for sale under this plan.  There were 57 class B common shares sold to employees under this plan in 2012 at a weighted average fair value of $4.25.  As of December 30, 2012, there are 2,207 shares available for sale under the plan.

8  VARIABLE INTEREST ENTITY

In 2009, the FASB issued amended guidance for consolidating VIEs.  The guidance amends the evaluation criteria to identify the primary beneficiary of a VIE and requires ongoing reassessment of whether an enterprise is the primary beneficiary of the VIE.  The guidance also replaces the quantitative-based risks and rewards calculation for determining which reporting entity, if any, has a controlling financial interest in a VIE with an approach focused on identifying which reporting entity has the power to direct the activities of a VIE that most significantly impact the entity’s economic performance and (1) the obligation to absorb losses of the entity or (2) the right to receive benefits from the entity. The amended guidance also requires additional disclosures about a reporting entity’s involvement in VIEs.  We adopted this guidance in the first quarter of 2010.

We had an affiliation agreement with ACE TV, Inc. for the rights under a local marketing agreement for WACY-TV in Appleton, Wisconsin and to acquire certain assets of ACE TV, Inc. including the broadcast license of WACY-TV for a purchase price of $2,038, pending FCC rule changes and approval.  In May 2012, we filed an application with the FCC to convert the local marketing agreement into an ownership interest through a failed station waiver, which was pending approval.  Under the affiliation agreement, ACE TV, Inc. provided the programming for WACY-TV and we sold advertising time, provided all other television operating activities and owned certain assets used by WACY-TV.  Based on our power to direct certain activities and our right to ultimately acquire certain additional assets, including the broadcast license, we determined that ACE TV, Inc. was a VIE and that we were the primary beneficiary of the variable interests of WACY-TV.  As a result, we consolidated the net assets of ACE TV, Inc., aggregating $1,164 which consisted primarily of a broadcast license and investments.  The investments of ACE TV, Inc. could be used only to settle obligations of ACE TV, Inc.  Creditors of ACE TV, Inc. had no recourse to our general credit.  We did not provide financial or other support that we were not contractually required to provide.  On October 22, 2012, we closed on the acquisition of the remaining assets used in the operation of WACY-TV from ACE TV, Inc.

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JOURNAL COMMUNICATIONS, INC.

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS

December 30, 2012 (in thousands, except per share amounts)

9  GOODWILL, BROADCAST LICENSES AND OTHER INTANGIBLE ASSETS

Definite-Lived Intangibles

Our definite-lived intangible assets consist primarily of network affiliation agreements, customer lists, non-compete agreements and trade names.  We amortize the network affiliation agreements over a period of 25 years based on our good relationships with the networks, our long history of renewing these agreements and because 25 years is deemed to be the length of time before a material modification of the underlying contract would occur.  We amortize the customer lists over a period of five to 15 years, the non-compete agreements and franchise agreement fees over the terms of the contracts and the trade names over a period of 25 years.  Management determined there were no significant adverse changes in the value of these assets as of December 30, 2012.

Amortization expense was $1,776, $1,567 and $1,932 for 2012, 2011 and 2010, respectively.  Estimated amortization expense for our next five fiscal years is $3,102 for 2013, $3,008 for 2014, $2,999 for 2015, 2016 and 2017.

The gross carrying amount, accumulated amortization and net carrying amount of the major classes of definite-lived intangible assets as of December 30, 2012 and December 25, 2011 is as follows:

	Gross					Net
	Carrying		Accumulated			Carrying
	Amount		Amortization			Amount
December 30, 2012
Network affiliation agreements	$	70,430	$	(9,499	)	$	60,931
Customer lists		4,209		(3,583	)		626
Non-compete agreements		8,710		(8,701	)		9
Other		2,726		(1,558	)		1,168
Total	$	86,075	$	(23,341	)	$	62,734
December 25, 2011
Network affiliation agreements	$	26,930	$	(8,129	)	$	18,801
Customer lists		5,952		(4,862	)	$	1,090
Non-compete agreements		10,120		(10,095	)	$	25
Other		3,824		(2,340	)	$	1,484
Total	$	46,826	$	(25,426	)	$	21,400

During 2012, our community newspapers and shoppers business reporting unit sold its Northern Wisconsin Publishing group.  As part of the transactions, we wrote off customer lists, non-compete agreements and other intangible assets with a net carrying amount of $390.  During 2011, our community newspapers and shoppers business reporting unit sold several businesses in Florida. As part of the transactions, we wrote off customer lists, non-compete agreements and other intangible assets with a net carrying amount of $21.

Weighted-average amortization period:	Years
Network affiliation agreements		25
Customer lists		9
Non-compete agreements		5
Other		16

Broadcast Licenses

Broadcast licenses are deemed to have indefinite useful lives because we have renewed these agreements without issue in the past and we intend to renew them indefinitely in the future.  Accordingly, we expect the cash flows from our broadcast licenses to continue indefinitely.  The carrying value of our broadcast licenses was $129,566 and $81,547 as of December 30, 2012 and December 25, 2011, respectively.

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JOURNAL COMMUNICATIONS, INC.

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS

December 30, 2012 (in thousands, except per share amounts)

9  GOODWILL, BROADCAST LICENSES AND OTHER INTANGIBLE ASSETS continued

2012 Annual Impairment Test

Our annual impairment test on broadcast licenses was performed at individual television and radio stations as of September 24, 2012. The impairment tests indicated two of our television broadcast licenses and two of our radio broadcast licenses were impaired due to declines in revenue share, declines in projected long-term market revenues, and a reduction in radio perpetuity growth rates.  In accordance with the FASB's guidance for goodwill and intangible assets, our broadcast licenses were written down to their estimated fair value of $79,866 (excludes the broadcast license acquired in December 2012 with the acquisition of NewsChannel 5 Network, LLC), resulting in a $952 non-cash impairment charge for television and a $729 non-cash impairment charge for radio in the fourth quarter of 2012.

For broadcast licenses at individual television and radio stations, we use the Greenfield method, an income approach commonly used in the broadcast sector, to estimate fair value.  This approach assumes the start up of a new station by an independent market participant, and incorporates assumptions that are based on past experiences and judgments about future market performance.  These variables include, but are not limited to: the forecasted growth rate of each market (including market population, household income and retail sales), estimated market share, profit margins and operating cash flows of an independent station within a market, estimated capital expenditures and start up costs, risk-adjusted discount rate, likely media competition within the market and expected growth rates into perpetuity to estimate terminal values.  Adverse changes in significant assumptions such as an increase in discount rates, or a decrease in projected market revenues, market share or operating cash flows could result in additional non-cash impairment charges on our broadcast licenses in future periods, which could have a material impact on our financial condition and results of operations.

The fair value measurements determined for purposes of performing our impairment tests are considered level 3 under the fair value hierarchy because they require significant unobservable inputs to be developed using estimates and assumptions which we determine and reflect those that a market participant would use.

2011 Annual Impairment Test

Our annual impairment test on broadcast licenses was performed at individual television and radio stations as of September 26, 2011. The impairment tests indicated three of our television broadcast licenses were impaired due to a decline in projected long-term market revenues and an increase in the discount rates.  The changes in the discount rate used for our broadcast licenses are primarily driven by changes in the expected return on the public equity of comparable companies in the television and media sector and the average cost of capital.  In accordance with the FASB's guidance for goodwill and intangible assets, our broadcast licenses were written down to their estimated fair value of $81,547, resulting in an $879 non-cash impairment charge in the fourth quarter of 2011.

2010 Interim and Annual Impairment Tests

Our annual impairment test on broadcast licenses was performed at individual television and radio stations as of September 27, 2010 and results indicated there was no impairment of our broadcast licenses.

Goodwill

2012 Interim and Annual Impairment Tests

For purposes of testing the carrying value of goodwill related to our broadcasting reporting unit, we determine fair value by using an income and a market valuation approach.  The income approach uses expected cash flows of the reporting unit.  The cash flows are discounted for risk and time value.  In addition, the present value of the projected residual value is estimated and added to the present value of the cash flows.  The market approach is based on price multiples of publicly traded stocks of comparable companies to estimate fair value.  We assign a greater weight to the income approach as the market approach is deemed less reliable due to the differences in entity size and business model between our broadcasting reporting unit and the comparable companies selected.  We base our fair value estimates, in large measure, on projected financial information which we believe to be reasonable.  However, actual future results may differ from those projections, and those differences may be material.  The valuation methodology used to estimate the fair value of our reporting unit requires inputs and assumptions (i.e., market growth, operating cash flow margins and discount rates) that reflect current market conditions as well as management judgment.

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JOURNAL COMMUNICATIONS, INC.

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS

December 30, 2012 (in thousands, except per share amounts)

9  GOODWILL, BROADCAST LICENSES AND OTHER INTANGIBLE ASSETS continued

For purposes of testing the carrying value of goodwill related to our community newspaper and shoppers reporting unit, we determine fair value using an income and a market valuation approach.  The income approach uses expected cash flows of the reporting unit.  The cash flows are discounted for risk and time value.  In addition, the present value of the projected residual value is estimated and added to the present value of the cash flows.  The market approach is based on price multiples of publicly traded stocks of comparable companies to estimate fair value.  Each approach estimated a fair value exceeding carrying value.  We base our fair value estimates on various assumptions about our projected operating results, including continuing declines in publishing revenues as well as an expectation that we will achieve cash flow benefits from our continuing cost cutting measures.  The valuation methodology used to estimate the fair value of our reporting unit requires inputs and assumptions (i.e., market growth, operating cash flow margins and discount rates) that reflect current market conditions as well as management judgment.  These assumptions may change due to changes in market conditions and such changes may result in an impairment of our goodwill.  Actual operating results may not achieve these assumptions in the near term and such results may result in future impairment.

2011 Interim and Annual Impairment Tests

During the third quarter of 2011, we sold the remaining Florida-based businesses of our community newspapers and shoppers reporting unit. In conjunction with the sale, an interim impairment test as of September 25, 2011 was performed on the carrying value of $3,857 of goodwill associated with this reporting unit. Our interim impairment test indicated there was no goodwill impairment.

Our annual impairment tests on goodwill associated with the broadcasting and community newspaper and shoppers reporting units as of September 26, 2011 indicated there was no impairment of our goodwill.

2010 Annual Impairment Test

Our annual impairment tests on goodwill as of September 27, 2010 indicated there was no impairment of our goodwill.

The changes in the carrying amount of goodwill by reporting segment during the years ended December 30, 2012 and December 25, 2011 are as follows:

	Broadcasting			Publishing			Total
Goodwill	$	233,976		$	21,007		$	254,983
Accumulated impairment losses		(229,163	)		(16,722	)		(245,885	)
Balance as of December 26, 2010		4,813			4,285			9,098
Goodwill related to the sale of a business		-			(428	)		(428	)
Goodwill		233,976			20,579			254,555
Accumulated impairment losses		(229,163	)		(16,722	)		(245,885	)
Balance as of December 25, 2011		4,813			3,857			8,670
Goodwill related to the sale of a business		-			(923	)		(923	)
Goodwill related to the purchase of a business		118,071			-			118,071
Goodwill		352,047			19,656			371,703
Accumulated impairment losses		(229,163	)		(16,722	)		(245,885	)
Balance as of December 30, 2012	$	122,884		$	2,934		$	125,818

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JOURNAL COMMUNICATIONS, INC.

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS

December 30, 2012 (in thousands, except per share amounts)

10  ACQUISITIONS AND DIVESTITURES

2012

On June 25, 2012, Journal Broadcast Group, Inc. and Journal Broadcast Corporation, our broadcasting business, completed the asset purchase of KHTT-FM and KBEZ-FM in Tulsa, Oklahoma from Renda Broadcasting Corporation for $11,728 in cash.  Subsequent to this purchase, we now own five radio stations in Tulsa, Oklahoma.

The goodwill of $1,947 arising from the acquisition is attributable to the synergies expected from aligning our radio stations in a cluster within the Tulsa, Oklahoma market.  The purchase of KTTT-FM and KBEZ-FM builds our existing Tulsa, Oklahoma cluster, and creates a strong group that will continue to serve our listeners, customers and the entire Tulsa, Oklahoma community, and enhances our scale in this existing market. This clustering strategy has allowed us to target our stations’ formats and sales efforts to better serve advertisers and listeners as well as leverage operating expenses to maximize the performance of each station and the cluster.

The estimated fair values of identifiable assets acquired and liabilities assumed for KHTT-FM and KBEZ-FM at the acquisition date are as follows:

	KHTT-FM and KBEZ-FM
	Tulsa, OK
Property and equipment	$	181
Goodwill		1,947
Broadcast licenses		9,600
Total purchase price	$	11,728

The KHTT-FM and KBEZ-FM broadcast licenses expire in 2013 and collectively have a weighted average period of 0.7 years before the next renewal.  We expect to renew both licenses without issue.  The goodwill and broadcast licenses which we acquired are not subject to amortization for financial reporting purposes, but are expected to be entirely deductible for income tax purposes.

The acquisition was accounted for using the purchase method.  The operating results and cash flows of the acquired business are included in our consolidated financial statements from March 26, 2012, the date we entered into the local marketing agreement with Renda Broadcasting Corporation.

We had an affiliation agreement with ACE TV, Inc. for the rights under a local marketing agreement for WACY-TV in Appleton, Wisconsin and to purchase certain assets of ACE TV, Inc. including the broadcast license of WACY-TV for a purchase price of $2,038.  On October 22, 2012, we closed on the purchase of the remaining assets used in the operation of WACY-TV from ACE TV, Inc.  See Note 9 “Variable Interest Entity.”

On December 3, 2012, Journal Broadcast Group, Inc. completed the sale of certain assets (including the FCC licenses) of WKTI-AM in Knoxville, Tennessee for $65.  We recorded a pre-tax gain on the sale, net of transaction expenses, of $48.

On December 3, 2012, Journal Community Publishing Group, Inc., our community newspapers and shoppers business, completed the sale of Hodag Buyers’ Guide, North Star Journal, Merrill Foto News, Wausau Buyers’ Guide, Stevens Point Buyers’ Guide, Wood County Buyers’ Guide, Waupaca Buyers’ Guide, Waupaca County Post East, Waupaca County Post West, Clintonville Shoppers’ Guide, New London Buyers’ Guide, Silent Sports, Waupacanow.com, Merrillfotonews.com, Starjournalnow.com, Silentsports.net, Wibuyersguide.com and a single copy distribution network based in Rhinelander, WI for $1,200 in cash and promissory note of $772.  We recorded a pre-tax loss on the sale, net of transaction expenses, of $319.

On December 6, 2012, Journal Broadcast Group, Inc. completed the acquisition of NewsChannel 5 Network, LLC (NewsChannel 5) from a subsidiary of Landmark Media Enterprises, LLC.  The purchase price was $220,000 including a working capital adjustment of $5,000.

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JOURNAL COMMUNICATIONS, INC.

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS

December 30, 2012 (in thousands, except per share amounts)

10 ACQUISITIONS AND DIVESTITURES continued

NewsChannel 5 contributed revenue of $2,917 and earnings from continuing operations before taxes of $1,730 for the period from December 7, 2012 to December 30, 2012.  The following unaudited pro forma information presents the combined results of operations of Journal and NewsChannel 5 as if the acquisition of NewsChannel 5 had occurred on December 27, 2010:

	2012		2011
Pro Forma Results of Operations
Revenue	$	439,732	$	399,313
Earnings per share from continuing operations, diluted	$	0.71	$	0.47

The unaudited pro forma results reflect certain adjustments related to the acquisition, such as increased depreciation and amortization expense resulting from the fair valuation of assets acquired and the impact of financing the acquisition.  The pro forma results exclude any planned revenue or cost synergies or other effects of the planned integration of NewsChannel 5.  The pro forma results are for comparative purposes only and may not be indicative of the results that would have occurred if we had completed this acquisition as of the periods shown above or the results that will be attained in the future.

The goodwill of $116,124 arising from the acquisition is attributable to significant tax deductions we expect to realize related to the step up in basis of certain assets that will provide cash tax savings and, to a lesser extent, certain revenue and cost synergies expected to be realized.

The estimated provisional fair values of identifiable assets acquired and liabilities assumed for NewsChannel 5 at the acquisition date are as follows:

	NewsChannel 5
Tangible assets	$	13,383
Long-term assets, other		48
Working capital		6,845
Network affiliation agreements		43,500
FCC licenses		40,100
Goodwill		116,124
Total purchase price	$	220,000

We have completed the majority of our business combination accounting as of December 30, 2012 and expect to complete the remainder in the first quarter of 2013.  As of December 30, 2012, we are pending final agreement with the seller on the valuation of working capital. Final determination of the values of assets acquired and liabilities assumed may result in adjustments to the values presented above and a corresponding adjustment to goodwill.

The WTVF broadcast license expires in 2013.  We expect to renew the license without issue.  The goodwill and broadcast licenses which we acquired are not subject to amortization for financial reporting purposes, but are expected to be entirely deductible for income tax purposes.

Acquisition related costs with respect to the foregoing transactions were $2,152 and $3,145 for the fourth quarter ended and four quarters ended December 30, 2012, respectively, and are included in selling and administrative expenses in the condensed consolidated statements of operations.

The acquisition has been accounted for under the acquisition method of accounting which requires the total purchase price to be allocated to the assets acquired and liabilities assumed based on their estimated fair values.  The excess purchase price over the amounts assigned to tangible and intangible assets acquired and liabilities assumed is recognized as goodwill.  The operating results and cash flows of the acquired business are included in our consolidated financial statements from December 7, 2012, the effective date we acquired control of NewsChannel 5.

On December 20, 2012, Journal Broadcast Corporation, a subsidiary of Journal Communications, Inc., reached an agreement to purchase WNOX-FM in the Knoxville, TN market from Oak Ridge FM, Inc.  The transaction is subject to FCC approval.

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JOURNAL COMMUNICATIONS, INC.

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS

December 30, 2012 (in thousands, except per share amounts)

10 ACQUISITIONS AND DIVESTITURES continued

2011

In June 2011, Journal Community Publishing Group, Inc., our community newspapers and shoppers business, completed the sale of Pelican Press and Pelican Press Marketplace businesses, which operated in Sarasota, Florida, for $502.  We recorded a pre-tax gain on the sale, net of transaction expenses, of $245.  In August 2011, Journal Community Publishing Group, Inc. completed the sale of the remaining Florida-based community newspapers and shoppers businesses for aggregate consideration of $757.  The publications and web-sites included Florida Mariner, Clay Today, Clay County Leader, Ponte Vedra Recorder, St. Augustine Underground, First Coast Register and Car Connection, and were distributed in the Clay, St. John’s and Duval, Florida counties.  We recorded a total pre-tax gain on the sales, net of transaction expenses, of $253.  These sales allow us to focus our efforts on operating our Wisconsin-based community newspapers and shoppers businesses.

2010

There were no acquisitions or sales of businesses during 2010.

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JOURNAL COMMUNICATIONS, INC.

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS

December 30, 2012 (in thousands, except per share amounts)

11  DISCONTINUED OPERATIONS

NorthStar Print Group, Inc.

During 2005, Multi-Color Corporation (Multi-Color) acquired substantially all of the assets and certain liabilities of NorthStar Print Group, Inc. (NorthStar), our former label printing business.  Certain liabilities were excluded from the sale of NorthStar and primarily consisted of environmental site closure costs for both the Green Bay, Wisconsin real estate and real estate located in Norway, Michigan.  In January 2011, upon environmental site closure in Green Bay, Wisconsin, we sold the real estate holdings to Multi-Color according to the 2005 sale agreement.  The net proceeds were $822 and we recorded a pre-tax gain of $610.  We continue to have environmental site closure obligations with respect to the Norway, Michigan real estate, which was sold to Multi-Color in 2005.

The following table summarizes NorthStar’s revenue and earnings before income taxes as reported in earnings (loss) from discontinued operations, net of applicable income taxes in the consolidated statements of operations for all periods presented:

	2012		2011		2010
Years ended December 30, December 25 and December 26
Revenue	$	-	$	-	$	-
Earnings before income taxes	$	-	$	562	$	-

PrimeNet Marketing Services

During 2010, we sold substantially all of the operating assets of PrimeNet, our former direct marketing services business, located in St. Paul, Minnesota and Clearwater, Florida in two separate transactions.  On February 3, 2010, certain direct mail and mail services operating assets located in St. Paul, Minnesota were sold for $123.  The remaining Minnesota-based assets were shutdown in April 2010, and accordingly, we recorded $373 for shutdown related costs in the second quarter of 2010.  In a separate transaction, on February 8, 2010, we sold the Clearwater, Florida-based operations of PrimeNet for a $700 note repayable over four years and a $147 working capital note repayable over three years.  The consideration received in each transaction approximates the net book value of the assets sold.  PrimeNet was previously reported in our “Other” segment.

The following table summarizes PrimeNet’s revenue and loss before income taxes as reported in earnings (loss) from discontinued operations, net of applicable income taxes in the consolidated statements of operations for all periods presented:

	2012		2011		2010
Years ended December 30, December 25 and December 26
Revenue	$	-	$	-	$	2,144
Earnings before income taxes	$	-	$	-	$	(1,060	)

IPC Print Services, Inc.

On December 13, 2010, we sold substantially all of the assets and certain liabilities of IPC, our former printing services business to Walsworth Publishing Company (Walsworth).  Proceeds, net of transaction expenses, were $14,005 and resulted in a gain on discontinued operations before income taxes of $5,411.  An escrow fund in the amount of $731 was established to secure our representations and warranties pursuant to the purchase agreement for two years from the date of the sale. We received this payment in full in 2012.  The operations of IPC have been reflected as discontinued operations in our consolidated financial statements for all periods presented.  IPC was previously reported as our “Printing services” segment.

The following table summarizes IPC’s revenue and earnings before income taxes as reported in earnings (loss) from discontinued operations, net of applicable income taxes in the consolidated statements of operations for all periods presented:

	2012		2011		2010
Years ended December 30, December 25 and December 26
Revenue	$	-	$	-	$	40,685
Earnings before income taxes	$	-	$	-	$	1,672

Certain liabilities were excluded from the sale of IPC and were included in continuing operations in the December 26, 2010 consolidated condensed balance sheet.  These liabilities included certain expenses which were incurred prior to closing, and a working capital overpayment due back to Walsworth pursuant to the sale agreement.  The liabilities were paid in the third quarter of 2011.

87

JOURNAL COMMUNICATIONS, INC.

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS

December 30, 2012 (in thousands, except per share amounts)

12  WORKFORCE REDUCTION

During 2012, we recorded a pre-tax charge of $1,655 for workforce separation benefits across our publishing business.  These charges are recorded in operating costs and expenses and selling and administrative expenses in the consolidated statement of operations.  In 2012, the number of full-time and part-time employees decreased by approximately 15.1% compared to 2011.

Activity associated with workforce reductions during the years ended December 30, 2012 and December 25, 2011 was as follows:

	Balance as of		Charge for		Payments for			Balance as of
	December 25, 2011		Separation Benefits		Separation Benefits			December 30, 2012
	(dollars in millions)
Publishing	$	1,780	$	1,655	$	(2,626	)	$	809
Total	$	1,780	$	1,655	$	(2,626	)	$	809

	Balance as of		Charge for		Payments for			Balance as of
	December 26, 2010		Separation Benefits		Separation Benefits			December 25, 2011
	(dollars in millions)
Publishing	$	1,437	$	1,654	$	(1,311	)	$	1,780
Total	$	1,437	$	1,654	$	(1,311	)	$	1,780

13  RELATED PARTY TRANSACTIONS

On August 13, 2012, we repurchased all 3,264 outstanding shares of our class C common stock, all of which were held by Matex Inc., members of the family of our former chairman Harry J. Grant, trusts for the benefit of members of the family, and Proteus Fund, Inc., a non-profit organization.  Pursuant to the terms of the agreement, we paid $6,246 in cash and issued 15 unsecured subordinated promissory notes with an aggregate principal amount of $25,599. The notes bear interest at a rate of 7.25% per annum and interest is payable quarterly. One of the unsecured subordinated promissory notes, with a principal amount of $7,617, was issued to the Judith Abert Meissner Marital Trust, a beneficial owner of more than 5% of the issued and outstanding shares of our class B common stock. David G. Meissner, a member of our Board of Directors, is a beneficiary and trustee of this trust.  An additional three of the unsecured subordinated promissory notes, with an aggregate principal amount of $752, were issued to trusts for the benefit of Mr. Meissner’s children in which Mr. Meissner serves as trustee. All four of these notes are payable in six equal annual installments on September 30 of each of 2013, 2014, 2015, 2016, 2017 and 2018.  Of the $6,246 paid in cash for the repurchase, $2,042 went to the Judith Abert Meissner Marital Trust and the trusts for the benefit of Mr. Meissner’s children in which Mr. Meissner serves as trustee.

88

JOURNAL COMMUNICATIONS, INC.

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS

December 30, 2012 (in thousands, except per share amounts)

14  SEGMENT REPORTING

Our business segments are based on the organizational structure used by management for making operating and investment decisions and for assessing performance. Our reportable business segments are: (i) broadcasting; (ii); publishing and (iii) corporate. Our broadcasting segment consists of 34 radio stations and 15 television stations in 12 states.  Our publishing segment consists of the Milwaukee Journal Sentinel, which serves as the only major daily newspaper for the Milwaukee metropolitan area, and several community newspapers and shoppers in Wisconsin. Our corporate segment consists of unallocated corporate expenses and revenue eliminations.

With the reporting of PrimeNet as a discontinued operation during 2010, the previously reported “Other” segment was changed to “Corporate” and now reflects unallocated costs primarily related to corporate executive management and corporate governance. The prior year was revised to conform to this change.  With the reporting of IPC as a discontinued operation, we no longer have a printing services segment.

	2012			2011			2010
Revenue
Broadcasting	$	235,627		$	186,080		$	194,365
Publishing		164,947			170,976			182,799
Corporate eliminations		(532	)		(263	)		(405	)
	$	400,042		$	356,793		$	376,759
Operating earnings (loss)
Broadcasting	$	56,228		$	31,001		$	43,559
Publishing		11,622			15,901			18,222
Corporate		(7,858	)		(7,120	)		(8,757	)
	$	59,992		$	39,782		$	53,024
Broadcast license impairment
Broadcasting	$	1,681		$	879		$	-
Publishing		-			-			-
Corporate		-			-			-
	$	1,681		$	879		$	-
Depreciation and amortization
Broadcasting	$	13,013		$	12,297		$	12,747
Publishing		9,170			10,412			11,382
Corporate		667			622			500
	$	22,850		$	23,331		$	24,629
Capital expenditures
Broadcasting	$	10,750		$	8,531		$	7,770
Publishing		1,240			987			1,068
Corporate		746			1,143			553
	$	12,736		$	10,661		$	9,391

	2012			2011
Identifiable total assets
Broadcasting	$	523,179		$	262,216
Publishing		104,162			113,236
Corporate & discontinued operations		(1,538	)		42,273
	$	625,803		$	417,725

89

JOURNAL COMMUNICATIONS, INC.

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS

December 30, 2012 (in thousands, except per share amounts)

15  QUARTERLY FINANCIAL INFORMATION (UNAUDITED)

	2012 Quarters
	First		Second		Third		Fourth		Total
Revenue	$	82,266	$	95,507	$	97,755	$	124,514	$	400,042
Gross profit		33,817		46,271		44,703		66,962		191,753
Net earnings		2,919		7,611		7,698		15,097		33,325
Earnings per share
Basic - class A and B common stock		0.05		0.13		0.14		0.30		0.61
Diluted - class A and B common stock		0.05		0.13		0.14		0.30		0.61
Basic and diluted - class C common stock		0.19		0.28		0.15		-		0.74

	2011 Quarters
	First		Second		Third		Fourth		Total
Revenue	$	83,861	$	90,102	$	87,784	$	95,046	$	356,793
Gross profit		34,329		40,860		35,921		44,018		155,128
Net earnings		3,375		6,141		4,446		8,224		22,186
Earnings per share
Basic - class A and B common stock		0.05		0.10		0.07		0.14		0.37
Diluted - class A and B common stock		0.05		0.10		0.07		0.14		0.37
Basic and diluted - class C common stock		0.19		0.24		0.21		0.28		0.94

The first quarter of 2012 includes a pre-tax charge of $38 for separation benefits at our publishing business.  The second quarter of 2012 includes a pre-tax charge of $1,035 for separation benefits at our publishing business.  The third quarter of 2012 includes a pre-tax charge of $553 for separation benefits at our publishing business and a pre-tax long-lived asset impairment charge of $493.  The fourth quarter of 2012 includes a pre-tax broadcast license impairment charge of $1,681, a pre-tax loss of $319 on the sale of our northern Wisconsin community newspapers and shopper publications and a pre-tax charge of $29 for separation benefits at our publishing business.

The first quarter of 2011 includes a pre-tax gain of $562 on the sale of NorthStar.  The second quarter of 2011 includes a pre-tax gain on the sale of Florida-based community newspapers and shoppers businesses of $245. The third quarter of 2011 includes a pre-tax gain on the sale of the remaining Florida-based community newspapers and shoppers of $253 and a pre-tax charge of $1,308 for separation benefits at our publishing business.  The fourth quarter of 2011 includes a pre-tax broadcast license impairment charge of $879 and a pre-tax charge of $332 for separation benefits at our publishing business.

90

Report of Independent Registered Public Accounting Firm

To the Board of Directors and Shareholders of Journal Communications, Inc.

In our opinion, the accompanying consolidated balance sheets and the related consolidated statements of operations, comprehensive income, equity and cash flows present fairly, in all material respects, the financial position of Journal Communications, Inc. and its subsidiariesat December 30, 2012 and December 25, 2011, and the results of their operations and their cash flows for each of the three years in the period ended December 30, 2012in conformity with accounting principles generally accepted in the United States of America.  In addition, in our opinion, the financial statement schedule listed in the accompanying index under Item 15(2) presents fairly, in all material respects, the information set forth therein when read in conjunction with the related consolidatedfinancial statements.  Also in our opinion, the Company maintained, in all material respects, effective internal control over financial reporting as of December 30, 2012, based on criteria established in Internal Control - Integrated Framework issued by the Committee of Sponsoring Organizations of the Treadway Commission (COSO).  The Company's management is responsible for these financial statements and financial statement schedule, for maintaining effective internal control over financial reporting and for its assessment of the effectiveness of internal control over financial reporting, included in Management's Report on Internal Control over Financial Reporting appearing in Item 9A.  Our responsibility is to express opinions on these financial statements, on the financial statement schedule, and on the Company's internal control over financial reporting based on our integrated audits.  We conducted our audits in accordance with the standards of the Public Company Accounting Oversight Board (United States).  Those standards require that we plan and perform the audits to obtain reasonable assurance about whether the financial statements are free of material misstatement and whether effective internal control over financial reporting was maintained in all material respects.  Our audits of the financial statements included examining, on a test basis, evidence supporting the amounts and disclosures in the financial statements, assessing the accounting principles used and significant estimates made by management, and evaluating the overall financial statement presentation.  Our audit of internal control over financial reporting included obtaining an understanding of internal control over financial reporting, assessing the risk that a material weakness exists, and testing and evaluating the design and operating effectiveness of internal control based on the assessed risk.  Our audits also included performing such other procedures as we considered necessary in the circumstances. We believe that our audits provide a reasonable basis for our opinions.

A company’s internal control over financial reporting is a process designed to provide reasonable assurance regarding the reliability of financial reporting and the preparation of financial statements for external purposes in accordance with generally accepted accounting principles.  A company’s internal control over financial reporting includes those policies and procedures that (i) pertain to the maintenance of records that, in reasonable detail, accurately and fairly reflect the transactions and dispositions of the assets of the company; (ii) provide reasonable assurance that transactions are recorded as necessary to permit preparation of financial statements in accordance with generally accepted accounting principles, and that receipts and expenditures of the company are being made only in accordance with authorizations of management and directors of the company; and (iii) provide reasonable assurance regarding prevention or timely detection of unauthorized acquisition, use, or disposition of the company’s assets that could have a material effect on the financial statements.

Because of its inherent limitations, internal control over financial reporting may not prevent or detect misstatements.  Also, projections of any evaluation of effectiveness to future periods are subject to the risk that controls may become inadequate because of changes in conditions, or that the degree of compliance with the policies or procedures may deteriorate.

/s/ PricewaterhouseCoopers LLP

PricewaterhouseCoopers LLP

Chicago, Illinois

March 13, 2013

91

ITEM 9. CHANGES IN AND DISAGREEMENTS WITH ACCOUNTANTS ON ACCOUNTING AND FINANCIAL DISCLOSURE

None.

ITEM 9A. CONTROLS AND PROCEDURES

Conclusion Regarding the Effectiveness of Disclosure Controls and Procedures

We carried out an evaluation, under the supervision and with the participation of our Disclosure Committee, including our Chief Executive Officer and our Chief Financial Officer, of the effectiveness of the design and operation of our disclosure controls and procedures, as defined in Exchange Act Rules 14(c) to 15(e) as of the end of the period covered by this Annual Report on Form 10-K.  Based on that evaluation, the Chief Executive Officer and Chief Financial Officer concluded that our disclosure controls and procedures are effective to ensure that information required to be disclosed in our Exchange Act reports is recorded, processed, summarized and reported within the time periods specified in the Securities and Exchange Commission's rules and forms, and that such information is accumulated and communicated to them to allow timely decisions regarding required disclosure.

There has been no change in our internal control over financial reporting that occurred during our last fiscal quarter that has materially affected, or is reasonably likely to materially affect, our internal control over financial reporting.

Management’s Report on Internal Control Over Financial Reporting

We are responsible for establishing and maintaining adequate internal control over financial reporting, as such term is defined in Exchange Act Rule 13a-15(f).  Our internal control over financial reporting is designed to provide reasonable assurance regarding the reliability of financial reporting and the preparation of financial statements for external purposes in accordance with generally accepted accounting principles.  Under the supervision and with the participation of our management, including our Chief Executive Officer and our Chief Financial Officer, we conducted an evaluation of the effectiveness of our internal control over financial reporting based on the framework in Internal Control-Integrated Framework issued by the Committee of Sponsoring Organizations of the Treadway Commission.  Based on our evaluation under this framework, our management concluded that our internal control over financial reporting was effective as of December 30, 2012.

PricewaterhouseCoopers LLP, an independent registered public accounting firm, has audited our internal control over financial reporting as of December 30, 2012, as stated in their report which is included in Item 8 hereto.

ITEM 9B. OTHER INFORMATION

None.

PART III

ITEM 10. DIRECTORS, EXECUTIVE OFFICERS AND CORPORATE GOVERNANCE

The information contained under the headings “Election of Directors” and “Other Matters-Section 16(a) Beneficial Ownership Reporting Compliance” in the Proxy Statement for our May 7, 2013 Annual Meeting of Shareholders is incorporated by reference herein.  Reference is also made to the information under the heading “Executive Officers of the Registrant” included under Part I of this Annual Report on Form 10-K.

We have adopted a Code of Ethics for Financial Executives that applies to our Chief Executive Officer and senior financial and accounting officers and employees.  We have also adopted a Code of Ethics, applicable to all employees, and a Code of Conduct and Ethics for Members of the Board of Directors, applicable to all directors, which together satisfy the requirements of the New York Stock Exchange regarding a “code of business conduct.”  Finally, we have adopted Corporate Governance Guidelines addressing the subjects required by the New York Stock Exchange.  We make copies of the foregoing, as well as the charters of our Board committees, available free of charge on our website at www.journalcommunications.com.  We intend to satisfy the disclosure requirements under Item 5.05 of Form 8-K regarding amendments to, or waivers from, our Code of Ethics for Financial Executives by posting such information on our web site at the address stated above.  We are not including the information contained on our website as part of, or incorporating it by reference into, this Annual Report on Form 10-K.

92

ITEM 11. EXECUTIVE COMPENSATION

The information contained under the headings “Director Compensation,” “Compensation Discussion and Analysis,” “Compensation Committee Report” and “Executive Compensation,” in the Proxy Statement for our May 7, 2013 Annual Meeting of Shareholders is incorporated by reference herein.

ITEM 12. SECURITY OWNERSHIP OF CERTAIN BENEFICIAL OWNERS AND MANAGEMENT AND RELATED STOCKHOLDER MATTERS

The information contained under the headings “Stock Ownership of Management and Others” in the Proxy Statement for our May 7, 2013 Annual Meeting of Shareholders is incorporated by reference herein.

Equity Compensation Plan Information

The following table gives information about our common stock that may be issued under all of our equity compensation plans as of December 30, 2012.

						Number of Securities
						Remaining Available for
	Number of Securities					Future Issuance Under
	to be Issued Upon			Weighted-Average		Equity Compensation
	Exercise of Outstanding			Exercise Price of		Plans (excluding
	Options, Warrants			Outstanding Options,		securites reflected in
	and Rights			Warrants and Rights		Column (a))
Plan Category	(a)			(b)		(c)
Equity compensation plans approved by security holders (2003 Plan)		525,578	(1)	$	13.71		N/A	(1)
Equity compensation plans approved by security holders (2007 Plan)		557,629	(2)	$	7.88		4,567,064	(3)
Equity compensation plans not approved by security holders		-		$	-		-
Total		1,083,207		$	10.71		4,567,064

(1) Represents options to purchase shares of class B common stock and stock appreciation rights (SARs) to receive amounts equal to the excess of fair value of shares of class B common stock over the base value of each SAR under our 2003 Equity Incentive Plan (2003 Plan).  No further awards will be granted under our 2003 Plan.

(2) Represents SARs to receive amounts equal to the excess of fair value of shares of class B common stock over the base value of each SAR under our 2007 Journal Communications, Inc. Omnibus Incentive Plan (2007 Plan).

(3) Represents 2,360,044 shares available for issuance under our 2007 Plan, all of which may be issued in the form of nonstatutory or incentive stock options, SARs, restricted stock, restricted or deferred stock units, performance awards, dividend equivalents and other stock-based awards.  Also includes 2,207,020 shares available for issuance under our Employee Stock Purchase Plan.

ITEM 13. CERTAIN RELATIONSHIPS AND RELATED TRANSACTIONS, AND DIRECTOR INDEPENDENCE

The information contained under the headings “Election of Directors” and “Certain Transactions” in the Proxy Statement for our May 7, 2013 Annual Meeting of Shareholders is incorporated by reference herein.

ITEM 14. PRINICIPAL ACCOUNTING FEES AND SERVICES

The information contained under the heading “Independent Registered Public Accounting Firm Disclosure” in the Proxy Statement for our May 7, 2013 Annual Meeting of Shareholders is incorporated by reference herein.

93

PART IV

ITEM 15. EXHIBITS, FINANCIAL STATEMENT SCHEDULES

Financial Statements, Financial Statement Schedule and Exhibits

		Form 10-K Page(s)
(1)	Financial Statements
	Consolidated Balance Sheets at December 30, 2012 and December 25, 2011	55
	Consolidated Statements of Operations for each of the three years in the period ended December 30, 2012	56
	Consolidated Statements of Comprehensive Income for each of the three years in the period ended December 30, 2012	57
	Consolidated Statements of Equity for each of the three years in the period ended December 30, 2012	58
	Consolidated Statements of Cash Flows for each of the three years in the period ended December 30, 2012	59
	Notes to Consolidated Financial Statements	60
	Report of Independent Registered Public Accounting Firms	91
(2)	Financial Statement Schedule for the years ended December 30, 2012, December 25, 2011 and December 26, 2010
	II – Consolidated Valuation and Qualifying Accounts	95

All other schedules are omitted since the required information is not present, or is not present in amounts sufficient to require submission of the schedule, or because the information required is included in the consolidated financial statements and notes thereto.

(3)	Exhibits
	The exhibits listed on the accompanying “Index to Exhibits” (on pages 97 to 99) are filed, or incorporated by reference, as part of this Annual Report on Form 10-K.

94

JOURNAL COMMUNICATIONS, INC.

SCHEDULE II - CONSOLIDATED VALUATION AND QUALIFYING ACCOUNTS

Years ended December 30, 2012, December 25, 2011 and December 26, 2010

(dollars in thousands)

	Balance at		Additions								Balance at
	Beginning		Charged to		Other Additions						End
Description	of Year		Earnings		(Deductions)			Deductions			of Year
Allowance for doubtful accounts:
2012	$	1,870	$	2,499	$	346	(1)	$	2,247	(3)	$	2,468	(4)
2011	$	3,286	$	3,242	$	(1,105	)(2)	$	3,553	(3)	$	1,870	(4)
2010	$	3,732	$	2,994	$	-		$	3,440	(3)	$	3,286	(4)
Deferred income taxes
Valuation allowances on state net operating loss and tax credit carryforwards:
2012	$	57	$	-	$	195	(5)	$	53	(6)	$	199
2011	$	116	$	-	$	-		$	59	(6)	$	57
2010	$	202	$	-	$	-		$	86	(6)	$	116

(1) Includes write off of accounts receivable against the allowance for doubtful accounts of $15 related to the northern Wisconsin community newspapers and shoppers publications sold in 2012, and the addition of $361 related to the NewsChannel 5 Network, LLC purchase in 2012.

(2) Includes write off of accounts receivable against the allowance for doubtful accounts of $1,105 related to IPC Print Services, Inc.

(3) Deductions from the allowance for doubtful accounts equal accounts receivable written off, less recoveries, against the allowance.

(4) Includes allowance for doubtful accounts of $1,105 as of December 26, 2010 and $1,067 as of December 27, 2009, related to accounts receivable of IPC Print Services, Inc.  Fully reserved accounts receivable were excluded from the asset sale.

(5) Includes state net operating loss and tax credit carryforwards related to the northern Wisconsin community newspapers and shoppers publications sold in 2012.

(6) Deductions from the valuation allowances on state net operating loss and tax credit carryforwards equal expired, utilized or re-valued state net operating loss and tax credit carryforwards.

95

Pursuant to the requirements of Section 13 or 15(d) of the Securities Exchange Act of 1934, the Registrant has duly caused this annual report to be signed on its behalf by the undersigned, hereunto duly authorized on March 13, 2013.

JOURNAL COMMUNICATIONS, INC.

By: /s/ Steven J. Smith

Steven J. Smith

Chairman and Chief Executive Officer

Pursuant to the requirements of the Securities Exchange Act of 1934, this report has been signed by the following persons on behalf of the Registrant and in the capacities indicated on March 13, 2013:

/s/ Steven J. Smith

Steven J. Smith, Chairman of the Board & Chief Executive Officer

(Principal Executive Officer)

/s/ Andre J. Fernandez

Andre J. Fernandez, President & Chief Financial Officer

(Principal Financial Officer)

/s/ Jason R. Graham

Jason R. Graham, Vice President & Controller

(Principal Accounting Officer)

/s/ David J. Drury

David J. Drury, Director

/s/ David G. Meissner

David G. Meissner, Director

/s/ Jonathan Newcomb

Jonathan Newcomb, Director

/s/ Ellen F. Siminoff

Ellen F. Siminoff, Director

/s/ Mary Ellen Stanek

Mary Ellen Stanek, Director

/s/ Owen J. Sullivan

Owen J. Sullivan, Director

/s/ Jeanette Tully

Jeanette Tully, Director

/s/ Dean Blythe

Dean Blythe, Director

96

JOURNAL COMMUNICATIONS, INC.

INDEX TO EXHIBITS

Exhibit
Number	Description
(2)	Purchase Agreement, dated as of August 31, 2012, by and among Landmark Television, LLC and Journal Broadcast Group, Inc., and joined for certain limited purposes by Journal Broadcast Corporation, Journal Communications, Inc. and Landmark Media Enterprises, LLC [Schedules, exhibits and annexes to this document are not being filed herewith.  The registrant agrees to furnish supplementally a copy of any such schedule, exhibit or annex to the Securities and Exchange Commission upon request.] (incorporated by reference to Exhibit 2 to Journal Communications, Inc.’s Current Report on Form 8-K dated August 31, 2012 [Commission File No. 1-31805]).
(3.1)	Amended and Restated Articles of Incorporation of Journal Communications, Inc., as amended through June 30, 2006 (incorporated by reference to Exhibit 3.2 to Journal Communications, Inc.’s Current Report on Form 8-K dated June 30, 2006 [Commission File No. 1-31805]).
(3.2)	Bylaws of Journal Communications, Inc., as amended February 19, 2013.
(4.1)	Second Amended and Restated Credit Agreement, dated as of December 5, 2012, among Journal Communications, Inc., certain subsidiaries thereof, the several lenders party thereto, U.S. Bank National Association, as administrative agent, and Sun Trust Bank and Bank of America, N.A., as co-syndication agents (incorporated by reference to Exhibit 4 to Journal Communications, Inc.’s Current Report on Form 8-K dated December 5, 2012 [Commission File No. 1-31805]).
(4.2)	Shareholders Agreement, dated as of May 12, 2003, by and among Journal Communications, Inc. (then known as The Journal Company), The Journal Company (then known as Journal Communications, Inc.), Matex Inc. and the Abert Family Journal Stock Trust, as further executed by two “Family Successors,” Grant D. Abert and Barbara Abert Tooman (incorporated by reference to Exhibit 4.3 to Journal Communications, Inc.’s Registration Statement on Form S-1 filed on June 19, 2003 [Reg. No. 333-105210]).
(4.3)	Amendment to Shareholders Agreement, dated as of August 2, 2007, by and among Journal Communications, Inc., The Journal Company, Matex Inc., the Abert Family Journal Stock Trust, Grant D. Abert and Barbara Abert Tooman (incorporated by reference to Exhibit 4.2 to Journal Communications, Inc.’s Current Report on Form 8-K dated August 22, 2007 [Commission File No. 1-31805]).
(4.4)	Second Amendment to Shareholders Agreement, dated as of August 12, 2012, by and among Journal Communications, Inc., Matex Inc., Grant D. Abert, Barbara Abert Tooman, the Judith Abert Meissner Marital Trust, the Judith Abert Meissner Family Trust f/b/o Donald C. Meissner, the Judith Abert Meissner Family Trust f/b/o Linda B. Meissner, the Meissner 1999 Stock Trusts, Donald C. Meissner, Linda B. Meissner, Robin D. Abert, Corin A. Abert, the Robin D. Abert 2004 Trust u/a/d December 30, 2004 and Proteus Fund, Inc. (incorporated by reference to Exhibit 4.3 to Journal Communications, Inc.’s Current Report on Form 8-K dated August 12, 2012 [Commission File No. 1-31805]).
(10.1)	Journal Communications, Inc. Annual Management Incentive Plan, amended and restated as of February 9, 2009 (incorporated by reference to Exhibit 10.2 to Journal Communications, Inc.’s Annual Report on Form 10-K for the period ended December 25, 2011 [Commission File No. 1-31805]).*
(10.2)	Journal Communications, Inc. Non-Qualified Deferred Compensation Plan, amended and restated effective January 1, 2008 (incorporated by reference to Exhibit 10.1 to Journal Communications, Inc.’s Current Report on Form 8-K dated December 12, 2007 [Commission File No. 1-31805]).*
(10.3)	Journal Communications, Inc. Supplemental Benefit Plan, amended and restated as of January 1, 2008  (incorporated by reference to Exhibit 10.3 to Journal Communications, Inc.’s Current Report on Form 8-K dated December 12, 2007 [Commission File No. 1-31805]).*
(10.4)	Journal Communications, Inc. 2003 Employee Stock Purchase Plan, as amended and restated through December 8, 2009 (incorporated by reference to Exhibit 10.6 to Journal Communications, Inc.’s Annual Report on Form 10-K for the period ended December 27, 2009 [Commission File No. 1-31805]).*

97

(10.5)	Journal Communications, Inc. 2003 Equity Incentive Plan, as amended (incorporated by reference to Exhibit 10.5 to Journal Communications, Inc.’s Annual Report on Form 10-K for the period ended December 26, 2004 [Commission File No. 1-31805]).*
(10.6)	Amendment to the Journal Communications, Inc. 2003 Equity Incentive Plan, as amended (incorporated by reference to Exhibit 10.1 to Journal Communications, Inc.’s Current Report on Form 8-K dated February 13, 2007 [Commission File No. 1-31805]).*
(10.7)	Form of Stock Appreciation Rights Agreement for Fixed Price Stock Appreciation Rights under the Journal Communications, Inc. 2003 Equity Incentive Plan (incorporated by reference to Exhibit 10.2 to Journal Communications, Inc.’s Current Report on Form 8-K dated February 13, 2007 [Commission File No. 1-31805]).*
(10.8)	Form of Stock Appreciation Rights Agreement for Escalating Price Stock Appreciation Rights under the Journal Communications, Inc. 2003 Equity Incentive Plan (incorporated by reference to Exhibit 10.3 to Journal Communications, Inc.’s Current Report on Form 8-K dated February 13, 2007 [Commission File No. 1-31805]).*
(10.9)	Amended and Restated Employment Agreement, as amended and restated effective as of December 15, 2010, between Journal Communications, Inc. and Steven J. Smith (incorporated by reference to Exhibit 10.1 to Journal Communications, Inc.’s Current Report on Form 8-K dated December 15, 2010 [Commission File No. 1-31805]).*
(10.10)	Amendment to Amended and Restated Employment Agreement, effective as of March 19, 2012, between Journal Communications, Inc. and Steven J. Smith (incorporated by reference to Exhibit 10.1 to Journal Communications, Inc.’s Quarterly Report on Form 10-Q for the period ended March 25, 2012 [Commission File No. 1-31805]).*
(10.11)	Change in Control Agreement, as amended and restated effective as of October 11, 2010 between Journal Communications, Inc. and Elizabeth Brenner (incorporated by reference to Exhibit 10.1 to Journal Communications, Inc.’s Quarterly Report on Form 10-Q for the period ended September 26, 2010 [Commission File No. 1-31805]).*
(10.12)	Change in Control Agreement, as amended and restated effective as of October 11, 2010 between Journal Communications, Inc. and Mary Hill Taibl (incorporated by reference to Exhibit 10.2 to Journal Communications, Inc.’s Quarterly Report on Form 10-Q for the period ended September 26, 2010 [Commission File No. 1-31805]).*
(10.13)	Change in Control Agreement, as amended and restated effective as of October 11, 2010 between Journal Communications, Inc. and Andre J. Fernandez (incorporated by reference to Exhibit 10.1 to Journal Communications, Inc.’s Current Report on Form 8-K dated October 11, 2010 [Commission File No. 1-31805]).*
(10.14)	Journal Communications, Inc. 2007 Omnibus Incentive Plan, as amended and restated effective February 7, 2011 (incorporated by reference to Exhibit 10.24 to Journal Communications, Inc.’s Annual Report on Form 10-K for the period ended December 26, 2010 [Commission File No. 1-31805]).*
(10.15)	Form of Time-Based Restricted Stock Award Certificate, with dividends that accrue until vesting, under the Journal Communications, Inc. 2007 Omnibus Incentive Plan (incorporated by reference to Exhibit 10.25 to Journal Communications, Inc.’s Annual Report on Form 10-K for the period ended December 26, 2010 [Commission File No. 1-31805]).*
(10.16)	Form of Time-Based Restricted Stock Award Certificate, with dividends payable prior to vesting, under the Journal Communications, Inc. 2007 Omnibus Incentive Plan (incorporated by reference to Exhibit 10.26 to Journal Communications, Inc.’s Annual Report on Form 10-K for the period ended December 26, 2010 [Commission File No. 1-31805]).*
(10.17)	Form of Fixed-Price Stock Appreciation Rights Award Certificate under the Journal Communications, Inc. 2007 Omnibus Incentive Plan (incorporated by reference to Exhibit 10.27 to Journal Communications, Inc.’s Annual Report on Form 10-K for the period ended December 26, 2010 [Commission File No. 1-31805]).*
(10.18)	Form of Escalating Price Stock Appreciation Rights Award Certificate under the Journal Communications, Inc. 2007 Omnibus Incentive Plan (incorporated by reference to Exhibit 10.28 to Journal Communications, Inc.’s Annual Report on Form 10-K for the period ended December 26, 2010 [Commission File No. 1-31805]).*
(10.19)	Form of Non-Statutory Stock Option Award Certificate under the Journal Communications, Inc. 2007 Omnibus Incentive Plan (incorporated by reference to Exhibit 10.29 to Journal Communications, Inc.’s Annual Report on Form 10-K for the period ended December 26, 2010 [Commission File No. 1-31805]).*

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(10.20)	Form of Fully Vested Stock Award Notice under the Journal Communications, Inc. 2007 Omnibus Incentive Plan (incorporated by reference to Exhibit 4.7 to Journal Communications, Inc.’s Registration Statement on Form S-8 filed with the Securities and Exchange Commission on May 22, 2007 (Reg. No. 333-143146)).*
(10.21)	Form of Stock Settled Stock Appreciation Award Certificate under the Journal Communications, Inc. 2007 Omnibus Incentive Plan (incorporated by reference to Exhibit 10.22 to Journal Communications, Inc.’s Annual Report on Form 10-K for the period ended December 25, 2011 [Commission File No. 1-31805]).*
(10.22)	Form of Stock Settled Stock Appreciation Award Certificate with Retirement Accelerated under the Journal Communications, Inc. 2007 Omnibus Incentive Plan (incorporated by reference to Exhibit 10.33 to Journal Communications, Inc.’s Annual Report on Form 10-K for the period ended December 25, 2011 [Commission File No. 1-31805]).*
(10.23)	Form of Performance Unit Award Certificate under the Journal Communications, Inc. 2007 Omnibus Incentive Plan (incorporated by reference to Exhibit 10.2 to Journal Communications, Inc.’s Quarterly Report on Form 10-Q for the period ended March 25, 2012 [Commission File No. 1-31805]).*
(10.24)	Form of Performance Unit Award Certificate with Retirement Acceleration under the Journal Communications, Inc. 2007 Omnibus Incentive Plan (incorporated by reference to Exhibit 10.3 to Journal Communications, Inc.’s Quarterly Report on Form 10-Q for the period ended March 25, 2012 [Commission File No. 1-31805]).*
(10.25)	Journal Communications, Inc. Non-Employee Director Compensation Policy, as amended February 12, 2013.*
(10.26)	Journal Communications, Inc. Compensation Recoupment Policy, effective as of January 1, 2011 (incorporated by reference to Exhibit 10.2 to Journal Communications, Inc.’s Current Report on Form 8-K dated December 15, 2010 [Commission File No. 1-31805]).
(10.27)	Journal Communications, Inc. Internal Policy on Administration and Accounting for Stock Options, Restricted Stock and Other Equity Awards, as amended and restated as of July 12, 2011.*
(21)	Subsidiaries of the Registrant.
(23)	Consent of Independent Registered Public Accounting Firm.
(31.1)	Certification by Steven J. Smith, Chairman and Chief Executive Officer of Journal Communications, Inc., pursuant to Section 302 of the Sarbanes-Oxley Act of 2002.
(31.2)	Certification by Andre J. Fernandez, President and Chief Financial Officer of Journal Communications, Inc., pursuant to Section 302 of the Sarbanes-Oxley Act of 2002.
(32)	Certification of Steven J. Smith, Chairman and Chief Executive Officer and Andre J. Fernandez, President and Chief Financial Officer of Journal Communications, Inc., pursuant to 18 U.S.C. Section 1350, as adopted pursuant to Section 906 of the Sarbanes-Oxley Act of 2002.
(99.1)	Proxy Statement for the May 7, 2013 Annual Meeting of Shareholders of Journal Communications, Inc. (Except to the extent specifically incorporated by reference, the Proxy Statement for the May 7, 2013 Annual Meeting of Shareholders shall not be deemed to be filed with the Securities and Exchange Commission as part of this Annual Report on Form 10-K.)
(101)	The following materials from Journal Communications, Inc.’s Annual Report on Form 10-K for the period ended December 30, 2012, formatted in XBRL (Extensible Business Reporting Language): (i) the Consolidated Balance Sheets at December 30, 2012 and December 25, 2011; (ii) the Consolidated Statements of Operations for each of the three years in the period ended December 30, 2012; (iii) Consolidated Statements of Comprehensive Income for each of the three years in the period ended December 30, 201; (iv) the Consolidated Statements of Equity for each of the three years in the period ended December 30, 2012; (v) the Consolidated Statements of Cash Flows for each of the three years in the period ended December 30, 2012; and (vi) Notes to Consolidated Financial Statements, furnished herewith.

*Denotes a management or compensatory plan or arrangement.

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EX-3.2

Exhibit 3.2

BYLAWS

OF

JOURNAL COMMUNICATIONS, INC.

(f/k/a The Journal Company)

(a Wisconsin corporation)

Adopted 5/9/03

As amended 12/2/03

As amended 2/10/04

As amended 4/29/04

As amended 2/08/05

As amended 4/28/05

As amended 2/13/07

As amended 7/10/07

As amended 5/01/08

As amended 5/08/12

As amended 2/19/13

ARTICLE I.  OFFICES

1.01         Principal and Business Offices.  The corporation may have such principal and other business offices, either within or without the State of Wisconsin, as the Board of Directors may designate or as the business of the corporation may require from time to time.

1.02         Registered Office.  The registered office of the corporation required by the Wisconsin Business Corporation Law to be maintained in the State of Wisconsin may be, but need not be, identical with the principal office in the State of Wisconsin, and the address of the registered office may be changed from time to time by the Board of Directors or by the registered agent.  The business office of the registered agent of the corporation shall be identical to such registered office.

ARTICLE II.  SHAREHOLDERS

2.01         Annual Meeting.  The annual meeting of the shareholders (the “Annual Meeting”) shall be held at such time and on such date as may be fixed by or under the authority of the Board of Directors.  In fixing a meeting date for any Annual Meeting, the Board of Directors may consider such factors as it deems relevant within the good faith exercise of its business judgment.  At each Annual Meeting, the shareholders shall elect that number of directors equal to the number of directors in the class whose term expires at the time of such meeting.  At any such Annual Meeting, only other business properly brought before the meeting in accordance with Section 2.14 of these bylaws may be transacted.  If the election of directors shall not be held on the date fixed as herein provided for any Annual Meeting, or any adjournment thereof, the Board of Directors shall cause the election to be held at a special meeting of shareholders (a “Special Meeting”) as soon thereafter as is practicable.

2.02         Special Meetings.

(a)           A Special Meeting may be called by the Board of Directors, the Chairman of the Board, the Chief Executive Officer or the President and shall be called by the corporation upon the demand, in accordance with this Section 2.02, of the holders of record of shares representing at least 10% of all the votes entitled to be cast on any issue proposed to be considered at the Special Meeting.

(b)           In order that the corporation may determine the shareholders entitled to demand a Special Meeting, the Board of Directors may fix a record date to determine the shareholders entitled to make such a demand (the “Demand Record Date”).  The Demand Record Date shall not precede the date upon which the resolution fixing the Demand Record Date is adopted by the Board of Directors and shall not be more than ten (10) days after the date upon which the resolution fixing the Demand Record Date is adopted by the Board of Directors.  Any shareholder of record seeking to have shareholders demand a Special Meeting shall, by sending written notice to the Secretary of the corporation by hand or by certified or registered mail, return receipt requested, request the Board of Directors to fix a Demand Record Date.  The Board of Directors shall promptly, but in all events within ten (10) days after the date on which a valid request to fix a Demand Record Date is received, adopt a resolution fixing the Demand Record Date and shall make a public announcement of such Demand Record Date.  If no Demand Record Date has been fixed by the Board of Directors within ten (10) days after the date on which such request is received by the Secretary, the Demand Record Date shall be the 10th day after the first date on which a valid written request to set a Demand Record Date is received by the Secretary.  To be valid, such written request shall set forth the purpose or purposes for which the Special Meeting is to be held, shall be signed by one or more shareholders of record (or their duly authorized proxies or other representatives), shall bear the date of signature of each such shareholder (or proxy or other representative) and shall set forth all information about each such shareholder and about the beneficial owner or owners, if any, on whose behalf the request is made that would be required to be set forth in a shareholder’s notice described in paragraph (a) (ii) of Section 2.14 of these bylaws.

(c)           In order for a shareholder or shareholders to demand a Special Meeting, a written demand or demands for a Special Meeting by the holders of record as of the Demand Record Date of shares representing at least 10% of all the votes entitled to be cast on any issue proposed to be considered at the Special Meeting must be delivered to the corporation.  To be valid, each written demand by a shareholder for a Special Meeting shall set forth the specific purpose or purposes for which the Special Meeting is to be held (which purpose or purposes shall be limited to the purpose or purposes set forth in the written request to set a Demand Record Date received by the corporation pursuant to paragraph (b) of this Section 2.02), shall be signed by one or more persons who as of the Demand Record Date are shareholders of record (or their duly authorized proxies or other representatives), shall bear the date of signature of each such shareholder (or proxy or other representative), and shall set forth the name and address, as they appear in the corporation’s books, of each shareholder signing such demand and the class and number of shares of the corporation which are owned of record and beneficially by each such shareholder, shall be sent to the Secretary by hand or by certified or registered mail, return receipt requested, and shall be received by the Secretary within seventy (70) days after the Demand Record Date.

(d)           The corporation shall not be required to call a Special Meeting upon shareholder demand unless, in addition to the documents required by paragraph (c) of this Section 2.02, the Secretary receives a written agreement signed by each Soliciting Shareholder (as defined below), pursuant to which each Soliciting Shareholder, jointly and severally, agrees to pay the corporation’s costs of holding the Special Meeting, including the costs of preparing and mailing proxy materials for the corporation’s own solicitation, provided that if each of the resolutions introduced by any Soliciting Shareholder at such meeting is adopted, and each of the individuals nominated by or on behalf of any Soliciting Shareholder for election as a director at such meeting is elected, then the Soliciting Shareholders shall not be required to pay such costs.  For purposes of this paragraph (d), the following terms shall have the meanings set forth below:

(i)           “Affiliate” of any Person (as defined herein) shall mean any Person controlling, controlled by or under common control with such first Person.

(ii)           “Participant” shall have the meaning assigned to such term in Rule 14a-11 promulgated under the Securities Exchange Act of 1934, as amended (the “Exchange Act”).

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(iii)          “Person” shall mean any individual, firm, corporation, limited liability company, partnership, limited liability partnership, joint venture, association, trust, unincorporated organization or other entity.

(iv)          “Proxy” shall have the meaning assigned to such term in Rule 14a-1 promulgated under the Exchange Act.

(v)           “Solicitation” shall have the meaning assigned to such term in Rule 14a-11 promulgated under the Exchange Act.

(vi)          “Soliciting Shareholder” shall mean, with respect to any Special Meeting demanded by a shareholder or shareholders, any of the following Persons:

(A)           if the number of shareholders signing the demand or demands of meeting delivered to the corporation pursuant to paragraph (c) of this Section 2.02 is ten (10) or fewer, each shareholder signing any such demand;

(B)           if the number of shareholders signing the demand or demands of meeting delivered to the corporation pursuant to paragraph (c) of this Section 2.02 is more than ten (10), each Person who either (I) was a Participant in any Solicitation of such demand or demands or (II) at the time of the delivery to the corporation of the documents described in paragraph (c) of this Section 2.02 had engaged or intended to engage in any Solicitation of Proxies for use at such Special Meeting (other than a Solicitation of Proxies on behalf of the corporation); or

(C)           any Affiliate of a Soliciting Shareholder, if a majority of the directors then in office determine, reasonably and in good faith, that such Affiliate should be required to sign the written notice described in paragraph (c) of this Section 2.02 and/or the written agreement described in this paragraph (d) in order to prevent the purposes of this Section 2.02 from being evaded.

(e)           Except as provided in the following sentence, any Special Meeting shall be held at such hour and day as may be designated by whichever of the Board of Directors, the Chairman of the Board, the Chief Executive Officer or the President shall have called such meeting.  In the case of any Special Meeting called by the corporation upon the demand of shareholders (a “Demand Special Meeting”), such meeting shall be held at such hour and day as may be designated by the Board of Directors; provided, however, that the date of any Demand Special Meeting shall be not more than seventy (70) days after the Meeting Record Date (as defined in Section 2.06 hereof); and provided further that in the event that the directors then in office fail to designate an hour and date for a Demand Special Meeting within ten (10) days after the date that valid written demands for such meeting by the holders of record as of the Demand Record Date of shares representing at least 10% of all the votes entitled to be cast on each issue proposed to be considered at the Special Meeting are delivered to the corporation (the “Delivery Date”), then such meeting shall be held at 2:00 P.M. local time on the 100th day after the Delivery Date or, if such 100th day is not a Business Day (as defined below), on the first preceding Business Day.  In fixing a meeting date for any Special Meeting, the Board of Directors, the Chairman of the Board, the Chief Executive Officer or the President may consider such factors as he or it deems relevant within the good faith exercise of his or its business judgment, including, without limitation, the nature of the action proposed to be taken, the facts and circumstances surrounding any demand for such meeting, and any plan of the Board of Directors to call an Annual Meeting or a Special Meeting for the conduct of related business.

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(f)           The corporation may engage regionally or nationally recognized independent inspectors of elections to act as an agent of the corporation for the purpose of promptly performing a ministerial review of the validity of any purported written demand or demands for a Special Meeting received by the Secretary.  For the purpose of permitting the inspectors to perform such review, no purported demand shall be deemed to have been delivered to the corporation until the earlier of (i) five (5) Business Days following receipt by the Secretary of such purported demand and (ii) such date as the independent inspectors certify to the corporation that the valid demands received by the Secretary represent at least 10% of all the votes entitled to be cast on each issue proposed to be considered at the Special Meeting.  Nothing contained in this paragraph (f) shall in any way be construed to suggest or imply that the Board of Directors or any shareholder shall not be entitled to contest the validity of any demand, whether during or after such five (5) Business Day period, or to take any other action (including, without limitation, the commencement, prosecution or defense of any litigation with respect thereto).

(g)           For purposes of these bylaws, “Business Day” shall mean any day other than a Saturday, a Sunday or a day on which banking institutions in the State of Wisconsin are authorized or obligated by law or executive order to close.

2.03         Place of Meeting.  The Board of Directors, the Chairman of the Board, the Chief Executive Officer or the President may designate any place, either within or without the State of Wisconsin, as the place of meeting for an Annual Meeting or Special Meeting.  If no designation is made, the place of meeting shall be the principal office of the corporation.  Any meeting may be adjourned to reconvene at any place designated by vote of the Board of Directors or by the Chairman of the Board, the Chief Executive Officer or the President.

2.04         Notice of Meeting.  Written notice stating the date, time and place of any meeting of shareholders shall be delivered not less than ten (10) days nor more than sixty (60) days before the date of the meeting (unless a different time period is provided by the Wisconsin Business Corporation Law or the articles of incorporation), either personally or by mail, by or at the direction of the Board of Directors, the Chairman of the Board, the Chief Executive Officer, the President or the Secretary, to each shareholder of record entitled to vote at such meeting and to such other persons as required by the Wisconsin Business Corporation Law.  In the event of any Demand Special Meeting, such notice of meeting shall be sent not more than thirty (30) days after the Delivery Date.  If mailed, notice pursuant to this Section 2.04 shall be deemed to be effective when deposited in the United States mail, addressed to the shareholder at his or her address as it appears on the stock record books of the corporation, with postage thereon prepaid.  Unless otherwise required by the Wisconsin Business Corporation Law or the articles of incorporation of the corporation, a notice of an Annual Meeting need not include a description of the purpose for which the meeting is called.  In the case of any Special Meeting, (a) the notice of meeting shall describe any business that the Board of Directors shall have theretofore determined to bring before the meeting and (b) in the case of a Demand Special Meeting, the notice of meeting (i) shall describe any business set forth in the statement of purpose of the demands received by the corporation in accordance with Section 2.02 of these bylaws and (ii) shall contain all of the information required in the notice received by the corporation in accordance with Section 2.14(b) of these bylaws.  If an Annual Meeting or Special Meeting is adjourned to a different date, time or place, the corporation shall not be required to give notice of the new date, time or place if the new date, time or place is announced at the meeting before adjournment; provided, however, that if a new Meeting Record Date (as defined below) for an adjourned meeting is or must be fixed, the corporation shall give notice of the adjourned meeting to persons who are shareholders as of the new Meeting Record Date.

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2.05         Waiver of Notice.  A shareholder may waive any notice required by the Wisconsin Business Corporation Law, the articles of incorporation or these bylaws before or after the date and time stated in the notice.  The waiver shall be in writing and signed by the shareholder entitled to the notice, contain the same information that would have been required in the notice under applicable provisions of the Wisconsin Business Corporation Law (except that the time and place of meeting need not be stated) and be delivered to the corporation for inclusion in the corporate records.  A shareholder’s attendance at any Annual Meeting or Special Meeting, in person or by proxy, waives objection to all of the following:  (a) lack of notice or defective notice of the meeting, unless the shareholder at the beginning of the meeting or promptly upon arrival objects to holding the meeting or transacting business at the meeting; and (b) consideration of a particular matter at the meeting that is not within the purpose described in the meeting notice, unless the shareholder objects to considering the matter when it is presented.

2.06         Fixing of Record Date.  The Board of Directors may fix in advance a date not less than ten days and not more than seventy days prior to the date of an Annual Meeting or Special Meeting as the record date for the determination of shareholders entitled to notice of, or to vote at, such meeting (the “Meeting Record Date”).  In the case of any Demand Special Meeting, (i) the Meeting Record Date shall be not later than the 30th day after the Delivery Date and (ii) if the Board of Directors fails to fix the Meeting Record Date within thirty days after the Delivery Date, then the close of business on such 30th day shall be the Meeting Record Date.  The shareholders of record on the Meeting Record Date shall be the shareholders entitled to notice of and to vote at the meeting.  Except as provided by the Wisconsin Business Corporation Law for a court-ordered adjournment, a determination of shareholders entitled to notice of and to vote at an Annual Meeting or Special Meeting is effective for any adjournment of such meeting unless the Board of Directors fixes a new Meeting Record Date, which it shall do if the meeting is adjourned to a date more than 120 days after the date fixed for the original meeting.  The Board of Directors may also fix in advance a date as the record date for the purpose of determining shareholders entitled to take any other action or determining shareholders for any other purpose.  Such record date shall be not more than seventy days prior to the date on which the particular action, requiring such determination of shareholders, is to be taken.  The record date for determining shareholders entitled to a distribution (other than a distribution involving a purchase, redemption or other acquisition of the corporation’s shares) or a share dividend is the date on which the Board of Directors authorizes the distribution or share dividend, as the case may be, unless the Board of Directors fixes a different record date.

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2.07         Shareholders’ List for Meetings.  After a Meeting Record Date has been fixed, the corporation shall prepare a list of the names of all of the shareholders entitled to notice of the meeting.  The list shall be arranged by class or series of shares, if any, and show the address of and number of shares held by each shareholder.  Such list shall be available for inspection by any shareholder, beginning two (2) business days after notice of the meeting is given for which the list was prepared and continuing to the date of the meeting, at the corporation’s principal office or at a place identified in the meeting notice in the city where the meeting will be held.  A shareholder or his or her agent may, on written demand, inspect and, subject to the limitations imposed by the Wisconsin Business Corporation Law, copy the list, during regular business hours and at his or her expense, during the period that it is available for inspection pursuant to this Section 2.07.  The corporation shall make the shareholders’ list available at the meeting and any shareholder or his or her agent or attorney may inspect the list at any time during the meeting or any adjournment thereof.  Refusal or failure to prepare or make available the shareholders’ list shall not affect the validity of any action taken at a meeting of shareholders.

2.08         Quorum and Voting Requirements; Postponements; Adjournments.

(a)           Shares entitled to vote as a separate voting group may take action on a matter at any Annual Meeting or Special Meeting only if a quorum of those shares exists with respect to that matter.  If the corporation has only one class of stock outstanding, such class shall constitute a separate voting group for purposes of this Section 2.08.  Except as otherwise provided in the articles of incorporation or the Wisconsin Business Corporation Law, a majority of the votes entitled to be cast on the matter shall constitute a quorum of the voting group for action on that matter.  Once a share is represented for any purpose at any Annual Meeting or Special Meeting, other than for the purpose of objecting to holding the meeting or transacting business at the meeting, it is considered present for purposes of determining whether a quorum exists for the remainder of the meeting and for any adjournment of that meeting unless a new Meeting Record Date is or must be set for the adjourned meeting.  If a quorum exists, except in the case of the election of directors, action on a matter shall be approved if the votes cast within the voting group favoring the action exceed the votes cast opposing the action, unless the articles of incorporation or the Wisconsin Business Corporation Law requires a greater number of affirmative votes.  Unless otherwise provided in the articles of incorporation, each director to be elected shall be elected by a plurality of the votes cast by the shares entitled to vote in the election of directors at an Annual Meeting or Special Meeting at which a quorum is present.

(b)           The Board of Directors acting by resolution may postpone and reschedule any previously scheduled Annual Meeting or Special Meeting; provided, however, that a Demand Special Meeting shall not be postponed beyond the 100th day following the Delivery Date.  Any Annual Meeting or Special Meeting may be adjourned from time to time, whether or not there is a quorum, (i) at any time, upon a resolution by shareholders if the votes cast in favor of such resolution by the holders of shares of each voting group entitled to vote on any matter theretofore properly brought before the meeting exceed the number of votes cast against such resolution by the holders of shares of each such voting group or (ii) at any time prior to the transaction of any business at such meeting, by the President or pursuant to a resolution of the Board of Directors.  No notice of the time and place of adjourned meetings need be given except as required by the Wisconsin Business Corporation Law.  At any adjourned meeting at which a quorum shall be present or represented, any business may be transacted which might have been transacted at the meeting as originally notified.

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2.09         Conduct of Meeting.  The Chairman of the Board, and in his or her absence, the Chief Executive Officer, and in his or her absence, the President, and in his or her absence, the Executive Vice-President, and in his or her absence, any Vice President in the order provided under Section 4.09 of these bylaws, and in their absence, any person chosen by the shareholders present shall call any Annual Meeting or Special Meeting to order and shall act as chairperson of the meeting, and the Secretary of the corporation shall act as secretary of all meetings of the shareholders, but, in the absence of the Secretary, the presiding officer may appoint any other person to act as secretary of the meeting.

2.10         Intentionally left blank.

2.11         Voting of Shares.

(a)           Each outstanding share of Class A Common Stock shall be entitled to one vote and each outstanding share of Class B Common Stock shall be entitled to ten votes upon each matter submitted to a vote at an Annual Meeting or Special Meeting, except to the extent that the voting rights of the shares of any class or classes are enlarged, limited or denied by the Wisconsin Business Corporation Law or the articles of incorporation of the corporation.

(b)           Shares held by another corporation, if a sufficient number of shares entitled to elect a majority of the directors of such other corporation is held directly or indirectly by this corporation, shall not be entitled to vote at an Annual Meeting or Special Meeting, but shares held in a fiduciary capacity may be voted.

2.12         Action Without Meeting.  Any action required or permitted by the articles of incorporation or these bylaws or any provision of the Wisconsin Business Corporation Law to be taken at an Annual Meeting or Special Meeting may be taken without a meeting if a written consent or consents, describing the action so taken, is signed by all of the shareholders entitled to vote with respect to the subject matter thereof and delivered to the corporation for inclusion in the corporate records.

2.13         Acceptance of Instruments Showing Shareholder Action.  If the name signed on a vote, consent, waiver or proxy appointment corresponds to the name of a shareholder, the corporation, if acting in good faith, may accept the vote, consent, waiver or proxy appointment and give it effect as the act of a shareholder.  If the name signed on a vote, consent, waiver or proxy appointment does not correspond to the name of a shareholder, the corporation, if acting in good faith, may accept the vote, consent, waiver or proxy appointment and give it effect as the act of the shareholder if any of the following apply:

(a)           The shareholder is an entity and the name signed purports to be that of an officer or agent of the entity.

(b)           The name purports to be that of a personal representative, administrator, executor, guardian or conservator representing the shareholder and, if the corporation requests, evidence of fiduciary status acceptable to the corporation is presented with respect to the vote, consent, waiver or proxy appointment.

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(c)           The name signed purports to be that of a receiver or trustee in bankruptcy of the shareholder and, if the corporation requests, evidence of this status acceptable to the corporation is presented with respect to the vote, consent, waiver or proxy appointment.

(d)           The name signed purports to be that of a pledgee, beneficial owner, or attorney-in-fact of the shareholder and, if the corporation requests, evidence acceptable to the corporation of the signatory’s authority to sign for the shareholder is presented with respect to the vote, consent, waiver or proxy appointment.

(e)           Two or more persons are the shareholders as co-tenants or fiduciaries and the name signed purports to be the name of at least one of the co-owners and the person signing appears to be acting on behalf of all co-owners.

The corporation may reject a vote, consent, waiver or proxy appointment if the Secretary or other officer or agent of the corporation who is authorized to tabulate votes, acting in good faith, has reasonable basis for doubt about the validity of the signature on it or about the signatory’s authority to sign for the shareholder.

2.14         Notice of Shareholder Business and Nomination of Directors.

(a)           Annual Meetings.

(i)           Nominations of persons for election to the Board of Directors of the corporation and the proposal of business to be considered by the shareholders may be made at an Annual Meeting (A) pursuant to the corporation’s notice of meeting, (B) by or at the direction of the Board of Directors or (C) by any shareholder of the corporation who is a shareholder of record at the time of giving of notice provided for in this bylaw and who is entitled to vote at the meeting and complies with the notice procedures set forth in this Section 2.14.

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(ii)           For nominations or other business to be properly brought before an Annual Meeting by a shareholder pursuant to clause (C) of paragraph (a)(i) of this Section 2.14, the shareholder must have given timely notice thereof in writing to the Secretary of the corporation.  To be timely, a shareholder’s notice shall be received by the Secretary of the corporation at the principal offices of the corporation on or before December 31 of the year immediately preceding the Annual Meeting ; provided, however, that in the event that the date of the Annual Meeting is on or after May 1 in any year, notice by the shareholder to be timely must be so received not later than the close of business on the day which is determined by adding to December 31 of the year immediately preceding such Annual Meeting the number of days starting with May 1 and ending on the date of the Annual Meeting in such year.  Such shareholder’s notice shall be signed by the shareholder of record who intends to make the nomination or introduce the other business (or his duly authorized proxy or other representative), shall bear the date of signature of such shareholder (or proxy or other representative) and shall set forth:  (A) the name and address, as they appear on this corporation’s books, of such shareholder and the beneficial owner or owners, if any, on whose behalf the nomination or proposal is made; (B) the class and number of shares of the corporation which are beneficially owned by, and any other economic or equity interests in the corporation (including but not limited to swaps, futures, hedges, securities loans and/or other equity derivatives) owned or held by, such shareholder or beneficial owner or owners; (C) a representation that such shareholder is a holder of record of shares of the corporation entitled to vote at such meeting and intends to appear in person or by proxy at the meeting to make the nomination or introduce the other business specified in the notice; (D) in the case of any proposed nomination for election or re-election as a director, (I) the name and residence address of the person or persons to be nominated, (II) a description of all arrangements or understandings between such shareholder or beneficial owner or owners and each nominee and any other person or persons (naming such person or persons) pursuant to which the nomination is to be made by such shareholder, (III) such other information regarding each nominee proposed by such shareholder as would be required to be disclosed in solicitations of proxies for elections of directors, or would be otherwise required to be disclosed, in each case pursuant to Regulation 14A under the Exchange Act, including any information that would be required to be included in a proxy statement filed pursuant to Regulation 14A had the nominee been nominated by the Board of Directors and (IV) the written consent of each nominee to be named in a proxy statement and to serve as a director of the corporation if so elected; and (E) in the case of any other business that such shareholder proposes to bring before the meeting, (I) a brief description of the business desired to be brought before the meeting and, if such business includes a proposal to amend these bylaws, the language of the proposed amendment, (II) such shareholder’s and beneficial owner’s or owners’ reasons for conducting such business at the meeting and (III) any material interest in such business of such shareholder and beneficial owner or owners.

(iii)           Notwithstanding anything in the second sentence of paragraph (a)(ii) of this Section 2.14 to the contrary, in the event that the number of directors to be elected to the Board of Directors of the corporation is increased and there is no public announcement naming all of the nominees for director or specifying the size of the increased Board of Directors made by the corporation at least seventy days prior to the date of the Annual Meeting in the immediately preceding year, a shareholder’s notice required by this Section 2.14 shall also be considered timely, but only with respect to nominees for any new positions created by such increase, if it shall be received by the Secretary at the principal offices of the corporation not later than the close of business on the 10th day following the day on which such public announcement is first made by the corporation.

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(b)           Special Meetings.  Only such business shall be conducted at a Special Meeting as shall have been described in the notice of meeting sent to shareholders pursuant to Section 2.04 of these bylaws.  Nominations of persons for election to the Board of Directors may be made at a Special Meeting at which directors are to be elected pursuant to such notice of meeting (i) by or at the direction of the Board of Directors or (ii) by any shareholder of the corporation who (A) is a shareholder of record at the time of giving of such notice of meeting, (B) is entitled to vote at the meeting and (C) complies with the notice procedures set forth in this Section 2.14.  Any shareholder desiring to nominate persons for election to the Board of Directors at such a Special Meeting shall cause a written notice to be received by the Secretary of the corporation at the principal offices of the corporation not earlier than ninety days prior to such Special Meeting and not later than the close of business on the later of (x) the 60th day prior to such Special Meeting and (y) the 10th day following the day on which public announcement is first made of the date of such Special Meeting and of the nominees proposed by the Board of Directors to be elected at such meeting.  Such written notice shall be signed by the shareholder of record who intends to make the nomination (or his duly authorized proxy or other representative), shall bear the date of signature of such shareholder (or proxy or other representative) and shall set forth:  (A) the name and address, as they appear on the corporation’s books, of such shareholder and the beneficial owner or owners, if any, on whose behalf the nomination is made; (B) the class and number of shares of the corporation which are beneficially owned by such shareholder or beneficial owner or owners; (C) a representation that such shareholder is a holder of record of shares of the corporation entitled to vote at such meeting and intends to appear in person or by proxy at the meeting to make the nomination specified in the notice; (D) the name and residence address of the person or persons to be nominated; (E) a description of all arrangements or understandings between such shareholder or beneficial owner or owners and each nominee and any other person or persons (naming such person or persons) pursuant to which the nomination is to be made by such shareholder; (F) such other information regarding each nominee proposed by such shareholder as would be required to be disclosed in solicitations of proxies for elections of directors, or would be otherwise required to be disclosed, in each case pursuant to Regulation 14A under the Exchange Act, including any information that would be required to be included in a proxy statement filed pursuant to Regulation 14A had the nominee been nominated by the Board of Directors; and (G) the written consent of each nominee to be named in a proxy statement and to serve as a director of the corporation if so elected.

(c)           General.

(i)           Only persons who are nominated in accordance with the procedures set forth in this Section 2.14 shall be eligible to serve as directors.  Only such business shall be conducted at an Annual Meeting or Special Meeting as shall have been brought before such meeting in accordance with the procedures set forth in this Section 2.14.  The chairman of the meeting shall have the power and duty to determine whether a nomination or any business proposed to be brought before the meeting was made in accordance with the procedures set forth in this Section 2.14 and, if any proposed nomination or business is not in compliance with this Section 2.14, to declare that such defective proposal shall be disregarded.

(ii)          For purposes of this Section 2.14, “public announcement” shall mean disclosure in a press release reported by the Dow Jones News Service, Associated Press or comparable national news service or in a document publicly filed by the corporation with the Securities and Exchange Commission pursuant to Section 13, 14 or 15(d) of the Exchange Act.

(iii)         Notwithstanding the foregoing provisions of this Section 2.14, a shareholder shall also comply with all applicable requirements of the Exchange Act and the rules and regulations thereunder with respect to the matters set forth in this Section 2.14.  Nothing in this Section 2.14 shall be deemed to limit the corporation’s obligation to include shareholder proposals in its proxy statement if such inclusion is required by Rule 14a-8 under the Exchange Act.

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ARTICLE III.  BOARD OF DIRECTORS

3.01         General Powers, Classification and Number.  All corporate powers shall be exercised by or under the authority of, and the business affairs of the corporation managed under the direction of, the Board of Directors.  The number of directors of the corporation shall be nine (9), divided into three classes, designated as Class I, Class II and Class III; and such classes shall consist, as nearly as may be possible, of one-third of the total number of directors constituting the entire Board of Directors.  At the first meeting of shareholders at which directors are elected after the date these bylaws are adopted, the directors of Class I shall be elected for a term to expire at the first Annual Meeting after their election, and until their successors are duly elected and qualified, the directors of Class II shall he elected for a term to expire at the second Annual Meeting after their election, and until their successors are duly elected and qualified, and the directors of Class III shall be elected for a term to expire at the third Annual Meeting after their election, and until their successors are duly elected and qualified.  At each Annual Meeting after the first meeting of shareholders at which directors are elected after the date these bylaws are adopted, the successors to the class of directors whose terms shall expire at the time of such Annual Meeting shall be elected to hold office until the third succeeding Annual Meeting, and until their successors are duly elected and qualified.

3.02         Tenure and Qualifications.  Each director shall hold office until the next Annual Meeting in the year in which such director’s term expires and until his or her successor shall have been duly elected and, if necessary, qualified, or until there is a decrease in the number of directors which takes effect after the expiration of his or her term, or until his or her prior retirement, death, resignation or removal.  A director may be removed from office only as provided in the articles of incorporation at a meeting of the shareholders called for the purpose of removing the director, and the meeting notice shall state that the purpose, or one of the purposes, of the meeting is removal of the director.  A director may resign at any time by delivering written notice which complies with the Wisconsin Business Corporation Law to the Board of Directors, to the Chairman of the Board or to the corporation.  A director’s resignation is effective when the notice is delivered unless the notice specifies a later effective date.  Directors need not be residents of the State of Wisconsin or shareholders of the corporation.  No other restrictions, limitations or qualifications may be imposed on individuals for service as a director.

3.03         Chairman of the Board.  The Board of Directors may elect a director as the Chairman of the Board.  The Chairman of the Board shall, when present, preside at all meetings of the shareholders and of the Board of Directors, may call meetings of the shareholders and the Board of Directors, shall advise and counsel with the management of the corporation, and shall perform such other duties as set forth in these bylaws and as determined by the Board of Directors.  Except as provided in this Section 3.02, the Chairman shall be neither an officer nor an employee of the corporation by virtue of his or her election and service as Chairman of the Board; provided, however, the Chairman may be an officer of the corporation.  The Chairman may use the title Chairman or Chairman of the Board interchangeably.

3.04         Regular Meetings.  A regular meeting of the Board of Directors shall be held without other notice than this bylaw immediately after the Annual Meeting and each adjourned session thereof.  The place of such regular meeting shall be the same as the place of the Annual Meeting which precedes it, or such other suitable place as may be announced at such Annual Meeting.  The Board of Directors may provide, by resolution, the date, time and place, either within or without the State of Wisconsin, for the holding of additional regular meetings of the Board of Directors without other notice than such resolution.

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3.05         Special Meetings.  Special meetings of the Board of Directors may be called by or at the request of the Chairman of the Board, the Chief Executive Officer, the President, the Executive Vice-President, the Secretary or any two directors.  The Chairman of the Board, the Chief Executive Officer, the President, the Executive Vice-President or the Secretary may fix any place, either within or without the State of Wisconsin, as the place for holding any special meeting of the Board of Directors, and if no other place is fixed the place of the meeting shall be the principal office of the corporation in the State of Wisconsin.

3.06         Notice; Waiver.  Notice of each meeting of the Board of Directors (unless otherwise provided in or pursuant to Section 3.04 of these bylaws) shall be given by written notice delivered in person, by telegraph, teletype, facsimile or other form of wire or wireless communication, or by mail or private carrier, to each director at his business address or at such other address as such director shall have designated in writing filed with the Secretary, in each case not less than forty-eight hours prior to the meeting.  The notice need not describe the purpose of the meeting of the Board of Directors or the business to be transacted at such meeting.  If mailed, such notice shall be deemed to be effective when deposited in the United States mail so addressed, with postage thereon prepaid.  If notice is given by telegram, such notice shall be deemed to be effective when the telegram is delivered to the telegraph company.  If notice is given by private carver, such notice shall be deemed to be effective when delivered to the private carrier.  Whenever any notice whatever is required to be given to any director of the corporation under the articles of incorporation or these bylaws or any provision of the Wisconsin Business Corporation Law, a waiver thereof in writing, signed at any time, whether before or after the date and time of meeting, by the director entitled to such notice shall be deemed equivalent to the giving of such notice.  The corporation shall retain any such waiver as part of the permanent corporate records.  A director’s attendance at or participation in a meeting waives any required notice to him or her of the meeting unless the director at the beginning of the meeting or promptly upon his or her arrival objects to holding the meeting or transacting business at the meeting and does not thereafter vote for or assent to action taken at the meeting.

3.07         Quorum.  Except as otherwise provided by the Wisconsin Business Corporation Law or by the articles of incorporation or these bylaws, a majority of the number of directors specified in Section 3.01 of these bylaws shall constitute a quorum for the transaction of business at any meeting of the Board of Directors.  In the event that there are only two directors then in office, a quorum for the transaction of business at any meeting of the Board of Directors shall consist of one-third of the number of directors specified in Section 3.01 of these bylaws.  Except as otherwise provided by the Wisconsin Business Corporation Law or by the articles of incorporation or by these bylaws, a quorum of any committee of the Board of Directors created pursuant to Section 3.13 of these bylaws shall consist of a majority of the number of directors appointed to serve on the committee.  A majority of the directors present (though less than such quorum) may adjourn any meeting of the Board of Directors or any committee thereof, as the case may be, from time to time without further notice.

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3.08         Manner of Acting.  The affirmative vote of a majority of the directors present at a meeting of the Board of Directors or a committee thereof at which a quorum is present shall be the act of the Board of Directors or such committee, as the case may be, unless the Wisconsin Business Corporation Law, the articles of incorporation or these bylaws require the vote of a greater number of directors.

3.09         Conduct of Meetings.  The Chairman of the Board, and in his or her absence, the Chief Executive Officer, and in his or her absence, the President, and in his or her absence, the Executive Vice-President, and in his or her absence, a Vice President in the order provided under Section 4.09 of these bylaws, and in their absence, any director chosen by the directors present, shall call meetings of the Board of Directors to order and shall act as chairperson of the meeting.  The Secretary of the corporation shall act as secretary of all meetings of the Board of Directors but in the absence of the Secretary, the presiding officer may appoint any other person present to act as secretary of the meeting.  Minutes of any regular or special meeting of the Board of Directors shall be prepared and distributed to each director.

3.10         Vacancies.  Any vacancies occurring in the Board of Directors, including a vacancy created by an increase in the number of directors, shall be filled only as provided in the articles of incorporation.  A vacancy that will occur at a specific later date, because of a resignation effective at a later date or otherwise, may be filled before the vacancy occurs, but the new director may not take office until the vacancy occurs.

3.11         Compensation.  The Board of Directors, irrespective of any personal interest of any of its members, may establish reasonable compensation of all directors for services to the corporation as directors or may delegate such authority to an appropriate committee.  The Board of Directors also shall have authority to provide for or delegate authority to an appropriate committee to provide for reasonable pensions, disability or death benefits, and other benefits or payments, to directors, officers and employees and to their estates, families, dependents or beneficiaries on account of prior services rendered by such directors, officers and employees to the corporation.

3.12         Presumption of Assent.  A director who is present and is announced as present at a meeting of the Board of Directors or any committee thereof created in accordance with Section 3.13 of these bylaws, when corporate action is taken, assents to the action taken unless any of the following occurs:  (a) the director objects at the beginning of the meeting or promptly upon his or her arrival to holding the meeting or transacting business at the meeting; (b) the director dissents or abstains from an action taken and minutes of the meeting are prepared that show the director’s dissent or abstention from the action taken; (c) the director delivers written notice that complies with the Wisconsin Business Corporation Law of his or her dissent or abstention to the presiding officer of the meeting before its adjournment or to the corporation immediately after adjournment of the meeting; or (d) the director dissents or abstains from an action taken, minutes of the meeting are prepared that fail to show the director’s dissent or abstention from the action taken, and the director delivers to the corporation a written notice of that failure that complies with the Wisconsin Business Corporation Law promptly after receiving the minutes.  Such right of dissent or abstention shall not apply to a director who votes in favor of the action taken.

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3.13         Committees.  The Board of Directors by resolution adopted by the affirmative vote of a majority of all of the directors then in office may create one or more committees, appoint members of the Board of Directors to serve on the committees and designate other members of the Board of Directors to serve as alternates.  Each committee shall have at least one member who shall, unless otherwise provided by the Board of Directors, serve at the pleasure of the Board of Directors.  A committee may be authorized to exercise the authority of the Board of Directors, except that a committee may not do any of the following:  (a) approve or recommend to shareholders for approval any action or matter expressly required by the Wisconsin Business Corporation Law, Chapter 180 of the Wisconsin Statutes, to be submitted to shareholders for approval; and (b) adopt, amend or repeal any bylaw of the corporation.  Unless otherwise provided by the Board of Directors in creating the committee, a committee may employ counsel, accountants and other consultants to assist it in the exercise of its authority.

3.14         Telephonic Meetings.  Except as herein provided and notwithstanding any place set forth in the notice of the meeting or these bylaws, members of the Board of Directors (and any committees thereof created pursuant to Section 3.13 of these bylaws) may participate in regular or special meetings by, or through the use of, any means of communication by which all participants may simultaneously hear each other, such as by conference telephone.  If a meeting is conducted by such means, then at the commencement of such meeting the presiding officer shall inform the participating directors that a meeting is taking place at which official business may be transacted.  Any participant in a meeting by such means shall be deemed present in person at such meeting.  Notwithstanding the foregoing, no action may be taken at any meeting held by such means on any particular matter which the presiding officer determines, in his or her sole discretion, to be inappropriate under the circumstances for action at a meeting held by such means.  Such determination shall be made and announced in advance of such meeting.

3.15         Action Without Meeting.  Any action required or permitted by the Wisconsin Business Corporation Law to be taken at a meeting of the Board of Directors or a committee thereof created pursuant to Section 3.13 of these bylaws may be taken without a meeting if the action is taken by all members of the Board or of the committee.  The action shall be evidenced by one or more written consents describing the action taken, signed by each director or committee member and retained by the corporation.  Such action shall be effective when the last director or committee member signs the consent, unless the consent specifies a different effective date.

ARTICLE IV.  OFFICERS

4.01         Number.  The principal officers of the corporation shall be a Chief Executive Officer, a President, an Executive Vice-President, the number of Vice Presidents as authorized from time to time by the Board of Directors, a Secretary, and a Treasurer, each of whom shall be elected by the Board of Directors.  Such other officers and assistant officers as may be deemed necessary may be elected or appointed by the Board of Directors.  The Board of Directors may also authorize any duly appointed officer to appoint one or more officers or assistant officers.  Any two or more offices may be held by the same person.

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4.02         Election and Term of Office.  The officers of the corporation to be elected by the Board of Directors shall be elected annually by the Board of Directors at the first meeting of the Board of Directors held after each Annual Meeting of the shareholders.  If the election of officers shall not be held at such meeting, such election shall be held as soon thereafter as is practicable.  Each officer shall hold office until his or her successor shall have been duly elected or until his or her prior death, resignation or removal.

4.03         Removal.  The Board of Directors may remove any officer and, unless restricted by the Board of Directors or these bylaws, an officer may remove any officer or assistant officer appointed by that officer, at any time, with or without cause and notwithstanding the contract rights, if any, of the officer removed.  The appointment of an officer does not of itself create contract rights.

4.04         Resignation.  An officer may resign at any time by delivering notice to the corporation that complies with the Wisconsin Business Corporation Law.  The resignation shall be effective when the notice is delivered, unless the notice specifies a later effective date and the corporation accepts the later effective date.

4.05         Vacancies.  A vacancy in any principal office because of death, resignation, removal, disqualification or otherwise, shall be filled by the Board of Directors for the unexpired portion of the term.  If a resignation of an officer is effective at a later date as contemplated by Section 4.04 of these bylaws, the Board of Directors may fill the pending vacancy before the effective date if the Board provides that the successor may not take office until the effective date.

4.06         Chief Executive Officer.  The Chief Executive Officer shall be the principal executive officer of the corporation and, subject to the control of the Board of Directors, shall in general supervise and control all of the business and affairs of the corporation.  The Chief Executive Officer shall have authority, subject to such rules as may be prescribed by the Board of Directors, to appoint such agents and employees of the corporation as he or she shall deem necessary, to prescribe their powers, duties and compensation, and to delegate authority to them.  Such agents and employees shall hold office at the discretion of the Chief Executive Officer.  He or she shall have authority to sign, execute and acknowledge, on behalf of the corporation, all deeds, mortgages, bonds, stock certificates, contracts, leases, reports and all other documents or instruments necessary or proper to be executed in the course of the corporation’s regular business, or which shall be authorized by resolution of the Board of Directors; and, except as otherwise provided by law or the Board of Directors, he or she may authorize the President or Executive Vice-President or any Vice President or other officer or agent of the corporation to sign, execute and acknowledge such documents or instruments in his or her place and stead.  In general, he or she shall perform all duties incident to the office of Chief Executive Officer and such other duties as may be prescribed by the Board of Directors from time to time.  In the absence or disability of the Chairman of the Board, or when that position is vacant, the Chief Executive Officer shall, when present, preside at all meetings of the shareholders and of the Board of Directors.

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4.07         President.  The President shall assist the Chief Executive Officer in exercising general supervision over the business and affairs of the corporation, and shall perform such other duties and have such authority as from time to time may be delegated or assigned to him or her by the Chief Executive Officer or by the Board of Directors.  The President shall have authority, subject to the authority of the Chief Executive Officer and to such rules as may be prescribed by the Board of Directors, to appoint such agents and employees of the corporation as he or she shall deem necessary, to prescribe their powers, duties and compensation, and to delegate authority to them.  Such agents and employees shall hold office at the discretion of the President.  He or she shall have authority to sign, execute and acknowledge, on behalf of the corporation, all deeds, mortgages, bonds, stock certificates, contracts, leases, reports and all other documents or instruments necessary or proper to be executed in the course of the corporation’s regular business, or which shall be authorized by the Chief Executive Officer or by resolution of the Board of Directors; and, except as otherwise provided by law, the Chief Executive Officer or the Board of Directors, he or she may authorize the Executive Vice-President or any Vice President or other officer or agent of the corporation to sign, execute and acknowledge such documents or instruments in his or her place and stead.  During the absence or disability of the Chief Executive Officer, or while that office is vacant, the President shall exercise all the powers and discharge all of the duties of the Chief Executive Officer.

4.08         The Executive Vice-President.  The Executive Vice-President shall assist the Chief Executive Officer and the President in exercising general supervision over the business and affairs of the corporation, and shall perform such other duties and have such authority as from time to time may be delegated or assigned to him or her by the Chief Executive Officer, the President or by the Board of Directors.  In the absence or disability of the President, the Executive Vice-President shall perform the duties and functions of the President.

4.09         The Vice Presidents.  In the absence or disability of both the President and the Executive Vice-President, the Vice President (or in the event there be more than one Vice President, the Vice Presidents in the order designated by the Board of Directors, or in the absence of any designation, then in the order of their election) shall perform the duties of the President, and when so acting, shall have all the powers of and be subject to all the restrictions upon the President.  Any Vice President may sign, with the Secretary or Assistant Secretary, certificates for shares of the corporation; and shall perform such other duties and have such authority as from time to time may be delegated or assigned to him or her by the Chief Executive Officer, the President or by the Board of Directors.  The execution of any instrument of the corporation by any Vice President shall be conclusive evidence, as to third parties, of his or her authority to act in the stead of the President.  The Board of Directors may designate any Vice President as being senior in rank or degree of responsibility and may accord such a Vice President an appropriate title designating his senior rank, such as “Senior Vice President.”  The Board of Directors may assign a certain Vice President responsibility for a designated group, division or function of the corporation’s business and add an appropriate descriptive designation to his title.

4.10         The Secretary.  The Secretary shall:  (a) keep minutes of the meetings of the shareholders and of the Board of Directors (and of committees thereof) in one or more books provided for that purpose (including records of actions taken by the shareholders or the Board of Directors (or committees thereof) without a meeting); (b) see that all notices are duly given in accordance with the provisions of these bylaws or as required by the Wisconsin Business Corporation Law; (c) be custodian of the corporate records and of the seal of the corporation and see that the seal of the corporation is affixed to all documents the execution of which on behalf of the corporation under its seal is duly authorized; (d) maintain a record of the shareholders of the corporation, in a form that permits preparation of a list of the names and addresses of all shareholders, by class or series of shares and showing the number and class or series of shares held by each shareholder; (e) sign with the Chief Executive Officer, the President, the Executive Vice-President or a Vice President, certificates for shares of the corporation, the issuance of which shall have been authorized by resolution of the Board of Directors; (f) have general charge of the stock transfer books of the corporation; and (g) in general perform all duties incident to the office of Secretary and have such other duties and exercise such authority as from time to time may be delegated or assigned by the Chief Executive Officer, the President the Executive Vice-President or by the Board of Directors.

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4.11         The Treasurer.  The Treasurer shall:  (a) have charge and custody of and be responsible for all funds and securities of the corporation; (b) maintain appropriate accounting records; (c) receive and give receipts for moneys due and payable to the corporation from any source whatsoever, and deposit all such moneys in the name of the corporation in such banks, trust companies or other depositaries as shall be selected in accordance with the provisions of Section 5.04 of these bylaws; and (d) in general perform all of the duties incident to the office of Treasurer and have such other duties and exercise such other authority as from time to time may be delegated or assigned by the Chief Executive Officer, the President, the Executive Vice-President or by the Board of Directors.  If required by the Board of Directors, the Treasurer shall give a bond for the faithful discharge of his or her duties in such sum and with such surety or sureties as the Board of Directors shall determine.

4.12         Assistant Secretaries and Assistant Treasurers.  There shall be such number of Assistant Secretaries and Assistant Treasurers as the Board of Directors may from time to time authorize.  The Assistant Secretaries may sign with the Chief Executive Officer, the President, the Executive Vice-President or a Vice President certificates for shares of the corporation the issuance of which shall have been authorized by a resolution of the Board of Directors.  The Assistant Treasurers shall respectively, if required by the Board of Directors, give bonds for the faithful discharge of their duties in such sums and with such sureties as the Board of Directors shall determine.  The Assistant Secretaries and Assistant Treasurers, in general, shall perform such duties and have such authority as shall from time to time be delegated or assigned to them by the Secretary or the Treasurer, respectively, or by the President or the Board of Directors.

4.13         Other Assistants and Acting Officers.  The Board of Directors shall have the power to appoint, or to authorize any duly appointed officer of the corporation to appoint, any person to act as assistant to any officer, or as agent for the corporation in his or her stead, or to perform the duties of such officer whenever for any reason it is impracticable for such officer to act personally, and such assistant or acting officer or other agent so appointed by the Board of Directors or an authorized officer shall have the power to perform all the duties of the office to which he or she is so appointed to be an assistant, or as to which he or she is so appointed to act, except as such power may be otherwise defined or restricted by the Board of Directors or the appointing officer.

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4.14         Salaries.  The salaries of the principal officers shall be fixed from time to time by the Board of Directors or by a duly authorized committee thereof, and no officer shall be prevented from receiving such salary by reason of the fact that he or she is also a director of the corporation.

ARTICLE V.  CONTRACTS, LOANS, CHECKS AND

DEPOSITS; SPECIAL CORPORATE ACTS

5.01         Contracts.  The Board of Directors may authorize any officer or officers, agent or agents, to enter into any contract or execute or deliver any instrument in the name of and on behalf of the corporation, and such authorization may be general or confined to specific instances.  In the absence of other designation, all deeds, mortgages and instruments of assignment or pledge made by the corporation shall be executed in the name of the corporation by the Chief Executive Officer, the President, the Executive Vice-President or one of the Vice Presidents and by the Secretary, an Assistant Secretary, the Treasurer or an Assistant Treasurer; the Secretary or an Assistant Secretary, when necessary or required, shall affix the corporate seal, if any, thereto; and when so executed no other party to such instrument or any third party shall be required to make any inquiry into the authority of the signing officer or officers.

5.02         Loans.  No indebtedness for borrowed money shall be contracted or, behalf of the corporation and no evidences of such indebtedness shall be issued in its name unless authorized by or under the authority of a resolution of the Board of Directors.  Such authorization may be general or confined to specific instances.

5.03         Checks, Drafts, etc.  All checks, drafts or other orders for the payment of money, notes or other evidences of indebtedness issued in the name of the corporation, shall be signed by such officer or officers, agent or agents of the corporation and in such manner as shall from time to time be determined by or under the authority of a resolution of the Board of Directors.

5.04         Deposits.  All funds of the corporation not otherwise employed shall be deposited from time to time to the credit of the corporation in such banks, trust companies or other depositaries as may be selected by or under the authority of a resolution of the Board of Directors.

5.05         Voting of Securities Owned by this Corporation.  Subject always to the specific directions of the Board of Directors, (a) any shares or other securities issued by any other corporation and owned or controlled by this corporation may be voted at any meeting of security holders of such other corporation by the Chief Executive Officer or the President of this corporation if any of them shall be present, or in their absence by the Executive Vice-President or any Vice President of this corporation who may be present, and (b) whenever, in the judgment of the Chief Executive Officer or President, or in their absence, of the Executive Vice-President or any Vice President, it is desirable for this corporation to execute a proxy or written consent in respect to any shares or other securities issued by any other corporation and owned by this corporation, such proxy or consent shall be executed in the name of this corporation by the Chief Executive Officer, the President, the Executive Vice-President or one of the Vice Presidents of this corporation, without necessity of any authorization by the Board of Directors, affixation of corporate seal, if any, or countersignature or attestation by another officer.  Any person or persons designated in the manner above stated as the proxy or proxies of this corporation shall have full right, power and authority to vote the shares or other securities issued by such other corporation and owned by this corporation the same as such shares or other securities might be voted by this corporation.

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5.06         No Nominee Procedures.  The corporation has not established, and nothing in these bylaws shall be deemed to establish, any procedure by which a beneficial owner of the corporation’s shares that are registered in the name of a nominee is recognized by the corporation as a shareholder under Section 180.0723 of the Wisconsin Business Corporation Law.

ARTICLE VI.  CERTIFICATES FOR SHARES; TRANSFER OF SHARES

6.01         Certificates for Shares.  Certificates representing shares of the corporation shall be in such form, consistent with the Wisconsin Business Corporation Law, as shall be determined by the Board of Directors.  Such certificates shall be signed by the Chief Executive Officer, the President, the Executive Vice-President or a Vice President and by the Secretary or an Assistant Secretary.  All certificates for shares shall be consecutively numbered or otherwise identified.  The name and address of the person to whom the shares represented thereby are issued, with the number of shares and date of issue, shall be entered on the stock transfer books of the corporation.  All certificates surrendered to the corporation for transfer shall be canceled and no new certificate shall be issued until the former certificate for a like number of shares shall have been surrendered and canceled, except as provided in Section 6.06 of these bylaws.

6.02         Facsimile Signatures and Seal.  The seal of the corporation, if any, on any certificates for shares may be a facsimile.  The signature of the Chief Executive Officer, the President, the Executive Vice-President or Vice President and the Secretary or Assistant Secretary upon a certificate may be facsimiles if the certificate is manually signed on behalf of a transfer agent, or a registrar, other than the corporation itself or an employee of the corporation.

6.03         Signature by Former Officers.  The validity of a share certificate is not affected if a person who signed the certificate (either manually or in facsimile) no longer holds office when the certificate is issued.

6.04         Transfer of Shares.  Prior to due presentment of a certificate for shares for registration of transfer the corporation may treat the registered owner of such shares as the person exclusively entitled to vote, to receive notifications and otherwise to have and exercise all the rights and power of an owner.  Where a certificate for shares is presented to the corporation with a request to register for transfer, the corporation shall not be liable to the owner or any other person suffering loss as a result of such registration of transfer if (a) there were on or with the certificate the necessary endorsements, and (b) the corporation had no duty to inquire into adverse claims or has discharged any such duty.  The corporation may require reasonable assurance that such endorsements are genuine and effective and compliance with such other regulations as may be prescribed by or under the authority of the Board of Directors.

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6.05         Restrictions on Transfer.  The face or reverse side of each certificate representing shares shall bear a conspicuous notation of any restriction imposed by the corporation upon the transfer of such shares.

6.06         Lost, Destroyed or Stolen Certificates.  The Board of Directors may direct a new certificate or certificates to be issued in place of any certificate or certificates theretofore issued by the corporation alleged to have been lost, stolen or destroyed, upon the making of an affidavit of that fact by the person claiming the certificate of stock to be lost, stolen or destroyed.  When authorizing such issue of a new certificate or certificates, the Board of Directors may, in its discretion and as a condition precedent to the issuance thereof, require the person requesting such new certificate or certificates, or his or her legal representative, to give the corporation a bond in such sum as it may direct as indemnity against any claim that may be made against the corporation with respect to the certificate alleged to have been lost, stolen or destroyed.

6.07         Consideration for Shares.  The Board of Directors may authorize shares to be issued for consideration consisting of any tangible or intangible property or benefit to the corporation, including cash, promissory notes, services performed, contracts for services to be performed or other securities of the corporation.  Before the corporation issues shares, the Board of Directors shall determine that the consideration received or to be received for the shares to be issued is adequate.  The determination of the Board of Directors is conclusive insofar as the adequacy of consideration for the issuance of shares relates to whether the shares are validly issued, fully paid and nonassessable.  The corporation may place in escrow shares issued in whole or in part for a contract for future services or benefits, a promissory note, or other property to be issued in the future, or make other arrangements to restrict the transfer of the shares, and may credit distributions in respect of the shares against their purchase price, until the services are performed, the benefits or property are received or the promissory note is paid.  If the services are not performed, the benefits or property are not received or the promissory note is not paid, the corporation may cancel, in whole or in part, the shares escrowed or restricted and the distributions credited.

6.08         Stock Regulations.  The Board of Directors shall have the power and authority to make all such further rules and regulations not inconsistent with law as it may deem expedient concerning the issue, transfer and registration of shares of the corporation.

ARTICLE VII.  SEAL

7.01         The Board of Directors may provide for a corporate seal for the corporation.

ARTICLE VIII.  FISCAL YEAR

8.01         The fiscal year of the corporation shall be from January 1 to December 31.

ARTICLE IX.  INDEMNIFICATION

9.01         Certain Definitions.  All terms used in this Article IX and not otherwise hereinafter defined in this Article IX shall have the meaning set forth in Section 180.0850 of the Wisconsin Business Corporation Law (the "Statute").  The following terms (including any plural forms thereof) used in this Article IX are defined as follows:

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(a)           “Affiliate” shall include, without limitation, any Person (including without limitation an employee benefit plan) that, directly or indirectly through one or more intermediaries, controls or is controlled by, or is under common control with, the Corporation.

(b)           “Authority” shall mean the entity selected by the Director or Officer or Covered Person to determine his right to indemnification pursuant to Section 9.04 of this Article IX.

(c)           “Board of Directors” shall mean the entire then elected and serving Board of Directors of the Corporation, including all members thereof who are Parties to the subject Proceeding or any related Proceeding.

(d)           “Breach of Duty” shall mean the Director or Officer or Covered Person breached or failed to perform his duties to the Corporation and his breach of or failure to perform those duties is determined, in accordance with Section 9.04 of this Article IX, to constitute misconduct under Section 180.0851(2)(a) 1, 2, 3 or 4 of the Statute.

(e)           “Corporation,” as used herein and as defined in the Statute and incorporated by reference into the definitions of certain other capitalized terms used herein, shall mean the corporation, including, without limitation, any successor corporation or entity to the corporation by way of merger, consolidation or acquisition of all or substantially all of the capital stock or assets of the corporation.

(f)            “Covered Person” shall mean any member of the committee referred to in Article 2 of the Corporation’s articles of incorporation, and any trustee of any employee benefit plan of the Corporation, and any person serving at the request of the Corporation as a director, officer, employee or agent of another corporation, partnership, joint venture or trust.

(g)           “Director or Officer” shall have the meaning set forth in the Statute; provided, that, for purposes of this Article IX, it shall be conclusively presumed that any Director or Officer serving as a director, officer, partner, member of any governing or decision-making committee, employee or agent of an Affiliate shall be so serving at the request of the Corporation.

(h)           “Disinterested Quorum” shall mean a quorum of the Board of Directors who are not Parties to the subject Proceeding or any related Proceeding.

(i)            “Party” shall have the meaning set forth in the Statute; provided, that, for purposes of this Article IX, the term “Party” shall also include any Director or Officer, Covered Person or employee of the Corporation who is or was a witness in a Proceeding at a time when he has not otherwise been formally named a Party thereto.

(j)            “Person” shall mean any individual, partnership, limited liability partnership, firm, corporation, limited liability company, association, trust, unincorporated organization or other entity, as well as any syndicate or group deemed to be a person under Section 14(d)(2) of the Securities Exchange Act of 1934, as amended (the "Exchange Act").

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(k)           “Proceeding” shall have the meaning set forth in the Statute; provided, that, in accordance with Section 180.0859 of the Statute and for purposes of this Article IX, the term “Proceeding” shall also include all Proceedings (i) brought under (in whole or in part) the Securities Act of 1933, as amended, the Exchange Act, their respective state counterparts, and/or any rule or regulation promulgated under any of the foregoing; (ii) brought before an Authority or otherwise to enforce rights hereunder; (iii) any appeal from a Proceeding; and (iv) any Proceeding in which the Director or Officer or Covered Person is a plaintiff or petitioner because he is a Director or Officer or Covered Person; provided, however, that any such Proceeding under this subsection (iv) must be authorized by a majority vote of a Disinterested Quorum.

(l)            “Statute” shall mean Sections 180.0850 through 180.0859, inclusive, of the Wisconsin Business Corporation Law, Chapter 180 of the Wisconsin Statutes, as the same shall then be in effect, including any amendments thereto, but, in the case of any such amendment, only to the extent such amendment permits or requires the Corporation to provide broader indemnification rights than the Statute permitted or required the Corporation to provide prior to such amendment.

9.02         Mandatory Indemnification of Directors and Officers and Covered Persons.  To the fullest extent permitted or required by the Statute, the Corporation shall indemnify a Director or Officer or Covered Person against all Liabilities incurred by or on behalf of such Director or Officer or Covered Person in connection with a Proceeding in which the Director or Officer or Covered Person is a Party because he is a Director or Officer or Covered Person.

9.03         Procedural Requirements.

(a)           A Director or Officer or Covered Person who seeks indemnification under Section 9.02 of this Article IX shall make a written request therefor to the Corporation.  Subject to subsection (b) of this Section 9.03, within sixty days of the Corporation’s receipt of such request, the Corporation shall pay or reimburse the Director or Officer or Covered Person for the entire amount of Liabilities incurred by the Director or Officer or Covered Person in connection with the subject Proceeding (net of any Expenses previously advanced pursuant to Section 9.05 of this Article IX).

(b)           No indemnification shall be required to be paid by the Corporation pursuant to Section 9.02 of this Article IX if, within such sixty-day period, (i) a Disinterested Quorum, by a majority vote thereof, determines that the Director or Officer or Covered Person requesting indemnification engaged in misconduct constituting a Breach of Duty or (ii) a Disinterested Quorum cannot be obtained.

(c)           In either case of nonpayment pursuant to subsection (b) of this Section 9.03, the Board of Directors shall immediately authorize by resolution that an Authority, as provided in Section 9.04 of this Article IX, determine whether the conduct of the Director or Officer or Covered Person constituted a Breach of Duty and, therefore, whether indemnification should be denied hereunder.

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(d)           (i)  If the Board of Directors does not authorize an Authority to determine the Director’s or Officer’s or Covered Person’s right to indemnification hereunder within such sixty-day period and/or (ii) if indemnification of the requested amount of Liabilities is paid by the Corporation, then it shall be conclusively presumed for all purposes that a Disinterested Quorum has affirmatively determined that the Director or Officer or Covered Person did not engage in misconduct constituting a Breach of Duty and, in the case of clause (i) above (but not clause (ii)), indemnification by the Corporation of the requested amount of Liabilities shall be paid to the Director or Officer or Covered Person immediately.

9.04         Determination of Indemnification.

(a)           If the Board of Directors authorizes an Authority to determine a Director’s or Officer’s or Covered Person’s right to indemnification pursuant to Section 9.03 of this Article IX, then the Director or Officer or Covered Person requesting indemnification shall have the absolute discretionary authority to select one of the following as such Authority:

(i)            An independent legal counsel; provided, that such counsel shall be mutually selected by such Director or Officer or Covered Person and by a majority vote of a Disinterested Quorum or, if a Disinterested Quorum cannot be obtained, then by a majority vote of the Board of Directors;

(ii)           A panel of three arbitrators selected from the panels of arbitrators of the American Arbitration Association in Wisconsin; provided, that (A) one arbitrator shall be selected by such Director or Officer or Covered Person, the second arbitrator shall be selected by a majority vote of a Disinterested Quorum or, if a Disinterested Quorum cannot be obtained, then by a majority vote of the Board of Directors, and the third arbitrator shall be selected by the two previously selected arbitrators, and (B) in all other respects (other than this Article IX), such panel shall be governed by the American Arbitration Association’s then existing Commercial Arbitration Rules; or

(iii)          A court pursuant to and in accordance with Section 180.0854 of the Statute.

(b)           In any such determination by the selected Authority there shall exist a rebuttable presumption that the conduct of the Director or Officer or Covered Person did not constitute a Breach of Duty and that indemnification against the requested amount of Liabilities is required.  The burden of rebutting such a presumption by clear and convincing evidence shall be on the Corporation or such other party asserting that such indemnification should not be allowed.

(c)           The Authority shall make its determination within sixty days of being selected and shall submit a written opinion of its conclusion simultaneously to both the Corporation and the Director or Officer or Covered Person.

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(d)           If the Authority determines that indemnification is required hereunder, then the Corporation shall pay the entire requested amount of Liabilities (net of any Expenses previously advanced pursuant to Section 9.05 of this Article IX), including interest thereon at a reasonable rate, as determined by the Authority, within ten days of receipt of the Authority’s opinion; provided, that, if it is determined by the Authority that a Director or Officer or Covered Person is entitled to indemnification against Liabilities’ incurred in connection with some claims, issues or matters, but not as to other claims, issues or matters, involved in the subject Proceeding, the Corporation shall be required to pay (as set forth above) only the amount of such requested Liabilities as the Authority shall deem appropriate in light of all of the circumstances of such Proceeding.

(e)           The determination by the Authority that indemnification is required hereunder shall be binding upon the Corporation regardless of any prior determination that the Director or Officer or Covered Person engaged in a Breach of Duty.

(f)            All Expenses incurred in the determination process under this Section 9.04 by either the Corporation or the Director or Officer or Covered Person, including, without limitation, all Expenses of the selected Authority, shall be paid by the Corporation.

9.05         Mandatory Allowance of Expenses.

(a)           The Corporation shall pay or reimburse from time to time or at any time, within ten days after the receipt of the Director’s or Officer’s or Covered Person’s written request therefor, the reasonable Expenses of the Director or Officer or Covered Person as such Expenses are incurred; provided, the following conditions are satisfied:

(i)           The Director or Officer or Covered Person furnishes to the Corporation an executed written certificate affirming his good faith belief that he has not engaged in misconduct that constitutes a Breach of Duty; and

(ii)           The Director or Officer or Covered Person furnishes to the Corporation an unsecured executed written agreement to repay any advances made under this Section 9.05 if it is ultimately determined by an Authority that he is not entitled to be indemnified by the Corporation for such Expenses pursuant to Section 9.04 of this Article IX.

(b)           If the Director or Officer or Covered Person must repay any previously advanced Expenses pursuant to this Section 9.05, then such Director or Officer or Covered Person shall not be required to pay interest on such amounts.

9.06         Indemnification and Allowance of Expenses of Certain Others.

(a)           The Board of Directors may, in its sole and absolute discretion as it deems appropriate, pursuant to a majority vote thereof, indemnify a director or officer of an Affiliate (who is not otherwise serving as a Director or Officer or Covered Person) against all Liabilities, and shall advance the reasonable Expenses, incurred by such director or officer in a Proceeding to the same extent hereunder as if such director or officer incurred such Liabilities because he was a Director or Officer or Covered Person, if such director or officer is a Party thereto because he is or was a director or officer of the Affiliate.

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(b)           The Corporation shall indemnify an employee who is not a Director or Officer or Covered Person, to the extent he has been successful on the merits or otherwise in defense of a Proceeding, for all reasonable Expenses incurred in the Proceeding if the employee was a Party because he was an employee of the Corporation.

(c)           The Board of Directors may, in its sole and absolute discretion as it deems appropriate, pursuant to a majority vote thereof, indemnify (to the extent not otherwise provided in subsection (b) of this Section 9.06) against Liabilities incurred by, and/or provide for the allowance of reasonable Expenses of, an employee or authorized agent of the Corporation acting within the scope of his duties as such and who is not otherwise a Director or Officer or Covered Person.

9.07         Insurance.  The Corporation may purchase and maintain insurance on behalf of a Director or Officer or Covered Person or any individual who is or was an employee or authorized agent of the Corporation against any Liability asserted against or incurred by such individual in his capacity as such or arising from his status as such, regardless of whether the Corporation is required or permitted to indemnify against any such Liability under this Article IX.

9.08         Notice to the Corporation.  A Director or Officer, Covered Person or employee shall promptly notify the Corporation in writing when he has actual knowledge of a Proceeding that may result in a claim of indemnification against Liabilities or allowance of Expenses hereunder, but the failure to do so shall not relieve the Corporation of any liability to the Director or Officer, Covered Person or employee hereunder unless the Corporation shall have been irreparably prejudiced by such failure (as determined, in the case of Directors or Officers or Covered Persons only, by an Authority selected pursuant to Section 9.04(a) of this Article IX).

9.09         Severability.  If any provision of this Article IX shall be deemed invalid or inoperative, or if a court of competent jurisdiction determines that any of the provisions of this Article IX contravene public policy, then this Article IX shall be construed so that the remaining provisions shall not be affected, but shall remain in full force and effect, and any such provisions that are invalid or inoperative or that contravene public policy shall be deemed, without further action or deed by or on behalf of the Corporation, to be modified, amended and/or limited, but only to the extent necessary to render the same valid and enforceable; it being understood that it is the Corporation’s intention to provide the Directors and Officers and Covered Persons with the broadest possible protection against personal liability allowable under the Statute.

9.10         Nonexclusivity of Article IX.  The rights of a Director or Officer, Covered Person or employee (or any other person) granted under this Article IX shall not be deemed exclusive of any other rights to indemnification against Liabilities or allowance of Expenses to which the Director or Officer, Covered Person or employee (or such other person) may be entitled under any written agreement, Board of Director resolution, vote of shareholders of the Corporation or otherwise, including, without limitation, under the Statute.  Nothing contained in this Article IX shall be deemed to limit the Corporation’s obligations to indemnify against Liabilities or allow Expenses to a Director or Officer, Covered Person or employee under the Statute.

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9.11         Contractual Nature of Article IX; Repeal or Limitation of Rights.  This Article IX shall be deemed to be a contract between the Corporation and each Director or Officer, Covered Person and employee of the Corporation, and any repeal or other limitation of this Article IX or any repeal or limitation of the Statute or any other applicable law shall not limit any rights of indemnification against Liabilities or allowance of Expenses then existing or arising out of events, acts or omissions occurring prior to such repeal or limitation, including, without limitation, the right to indemnification against Liabilities or allowance of Expenses for Proceedings commenced after such repeal or limitation to enforce this Article IX with regard to acts, omissions or events arising prior to such repeal or limitation.

ARTICLE X.  AMENDMENTS

10.01       By Shareholders.  Except as otherwise provided in the articles of incorporation or these bylaws, these bylaws may be amended or repealed and new bylaws may be adopted by the shareholders at any Annual Meeting or Special Meeting at which a quorum is in attendance.

10.02       By Directors.  Except as otherwise provided by the Wisconsin Business Corporation Law or the articles of incorporation, these bylaws may also be amended or repealed and new bylaws may be adopted by the Board of Directors by affirmative vote of a majority of the number of directors present at any meeting at which a quorum is in attendance; provided, however, that the shareholders in adopting, amending or repealing a particular bylaw may provide therein that the Board of Directors may not amend, repeal or readopt that bylaw.

10.03       Implied Amendments.  Any action taken or authorized by the shareholders or by the Board of Directors which would be inconsistent with the bylaws then in effect but which is taken or authorized by affirmative vote of not less than the number of shares or the number of directors required to amend the bylaws so that the bylaws would be consistent with such action shall be given the same effect as though the bylaws had been temporarily amended or suspended so far, but only so far, as is necessary to permit the specific action so taken or authorized.

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EX-10.25

Exhibit 10.25

Journal Communications Non-Employee Director Compensation Policy

Amended as of February 12, 2013 (1)

Cash Compensation
Annual Retainer Fee (2)	$30,000
Meeting Fees:
Per Meeting	$1,500
Teleconference Meeting	$1,000
Committee Retainers
Lead Director/Nominating and Corporate Governance	$15,000
Committee Chair (2)
Audit Committee Chair (2)	$10,000
Compensation Committee Chair (2)	$7,500
Equity Compensation
Annual Share Grant (at Annual Meeting of Shareholders)	$50,000 value (3)
Stock Ownership Guideline	25,000 shares (4)

Notes:

(1) In the event a new director is elected to the board after the date of the Shareholders’ Annual Meeting, but before the next Shareholders’ Annual Meeting, the new director will receive on a pro-rata basis the annual cash retainer fee and the annual share grant.  The pro-rata portion of the annual cash retainer fee (less the amount of such fee to be paid in regular quarterly installments) will be paid at the next regularly scheduled board meeting.  The pro-rata portion of the annual share grant will be made at the time of the first Shareholders’ Annual Meeting after the new director is elected to the board.  In the event the new director chairs a committee upon becoming a member of the board, the new director also will be paid the committee retainer on a pro-rata basis.

(2) Paid in 4 equal installments at first 4 regularly scheduled board meetings during each calendar year.

(3) Full value unrestricted grant of Class B common stock with a grant date of the date of each Shareholders’ Annual Meeting.

(4) Non-employee directors are required to own 25,000 shares of stock in Journal Communications.  New directors should meet the guideline within 5 years following the date they are elected to the board.

EX-10.27

Exhibit 10.27

Amended and Restated Policy Adopted by the Board of Directors July 12, 2011

Journal Communications, Inc.

Internal Policy on Administration and Accounting for Stock Options,

Restricted Stock and Other Equity Awards

Journal Communications, Inc. (the “Company”) seeks to attract and retain the best available personnel for positions of substantial responsibility.  Accordingly, the Company may grant stock options and other equity incentive awards to employees and directors under the equity incentive plans established by the Company from time to time in accordance with the guidelines set forth below.

Authorization of Equity Plans

Any Company plan providing for grants of Company stock or stock-based awards must be approved by the Board of Directors, and if required by applicable law or listing standards, the shareholders of the Company.  As of the date of this policy, the Company maintains three equity compensation plans: (1) the 2007 Omnibus Incentive Plan, which provides for various types of equity awards that may be granted to employees and outside directors of the Company, (2) the 2003 Equity Incentive Plan, which is not longer in use but continues to govern equity awards that were granted to employees and outside directors of the Company while such awards remain outstanding, and (3) the 2003 Employee Stock Purchase Plan (the “ESPP”), a broad-based plan qualified under Section 423 of the Internal Revenue Code, which allows our employees to purchase common stock every six months with accumulated payroll deductions.

Ø The 2007 Omnibus Incentive Plan was approved by the Board of Directors on February 13, 2007, and by the shareholders of the Company on May 3, 2007.

Ø The 2003 Equity Incentive Plan was approved by the Board of Directors on May 12, 2003, and by the shareholders of the Company on September 3, 2003.

Ø The ESPP was approved by the Board of Directors on May 12, 2003, and by the shareholders of the Company on September 3, 2003.  The ESPP provides for series of semi-annual offering periods under which employees are allowed to purchase stock at a discount to the market price on the last day of the offering period.  Because the ESPP is a formula plan, it is not covered by the remainder of this Equity Grant Policy.

Authority to Grant and Modify Awards

The power to authorize and grant equity awards, to designate the terms of those awards, and to modify previously-granted awards has been delegated to the Compensation Committee of the Board of Directors.  The Compensation Committee is appointed by the Board and shall act in accordance with the Compensation Committee Charter, which may be found under “Corporate Governance” on the Company’s website:  http://www.journalcommunications.com.

Approval Procedures for Equity Grants to Current Employees and Directors

Compensation Committee Approval.  Grants of equity awards to employees and directors of the Company, including those executive officers who are “Section 16” officers, as determined under Section 16 of the Securities Exchange Act of 1934, as amended, or “covered employees” for purposes of Internal Revenue Code Section 162(m), must be approved by the Compensation Committee.

Method and Documentation of Approval.  The Compensation Committee may approve the grant or modification of equity awards by majority vote at a meeting duly convened and held at which a quorum is present, in accordance with Wisconsin law.  Alternatively, the Compensation Committee may take such action by unanimous written consent in accordance with Wisconsin law; however, any grant or modification authorized by unanimous written consent shall not be deemed to be approved, and the grant or modification shall not be given effect, until the Legal Department of the Company has received the last required signature on any such unanimous written consent.  The date of receipt of signatures on written consents shall be evidenced by a copy of the transmission email if sent electronically, a date stamp on the consent if delivered by hand or sent by standard or overnight mail, or by the date stamp in the fax header if transmitted by facsimile.

The approval (or modification) of any equity grant must be documented in writing, such as in the minutes prepared under the direction of the Chair of the Compensation Committee or in a unanimous written consent, if applicable.  Such written documentation shall explicitly state, with respect to each equity grant:

Ø the name of the grantee,

Ø exercise price in the case of options,

Ø base value in the case of stock appreciation rights,

Ø number of shares subject to the award,

Ø the vesting schedule (if applicable), and

Ø the effective date of the grant (which in all cases shall be no earlier than the date approval for the grant is given by the Compensation Committee).

Timing of Grants.  Merit-based grants of equity awards, if any, to employees may be approved at any regularly scheduled meeting of the Compensation Committee, and the grant date for such awards shall be the third trading day after the next release of quarterly or year-end earnings, as applicable.  Such merit-based equity grants, if any, to employees may be approved at a regularly scheduled meeting of the Compensation Committee, regardless of whether the Compensation Committee is in possession of material non-public information at that time.  The Compensation Committee may in its sole discretion determine in any given quarter not to make any grants of equity awards.

New hire grants, grants upon promotions and other awards that are not regular merit-based grants will be made on the later of (i) approval of such grant by the Compensation Committee or (ii) the first business day of the month following the hire, promotion or other triggering event, unless the Committee specifies a different grant date, which is on or after the approval of such grant by the Committee.

Ø Vesting of any such non-regular grants may key off the triggering event, as opposed to the date of grant, if the Compensation Committee so approves.

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Annual grants of equity awards to non-employee directors shall be deemed made at the time specified in the director compensation policy approved by the Compensation Committee and Board from time to time, without further action and regardless of whether the Compensation Committee or Board is in possession of material non-public information at the pre-arranged grant date.

Award Documentation and Delivery

Once awards (or modifications) are authorized by the Compensation Committee, the Payroll Department shall prepare and distribute the award documentation and inform Corporate Finance of the awards by delivering a copy of the applicable award documentation.  Such distribution shall occur as soon as practicable, but no later than four (4) weeks, after the grant date unless a longer period is approved by the General Counsel and reported to the Compensation Committee.  Grant packages to grantees may be distributed electronically and shall include the following documentation:

Ø a grant agreement, notice or certificate setting forth the applicable terms and conditions of the award; and

Ø a copy of or instructions on how to access the plan prospectus and other relevant materials electronically.

Company Books and Records.  The Corporate Finance and Payroll Departments shall maintain a record of (i) authorization of awards or modifications, (ii) copies of award or modification authorization, (iii) cover letters and correspondence related to the awards, and (iv) correspondence related to cancellation or forfeiture of awards.  Corporate Finance is responsible for recording the awards in the Company’s books and records (or the applicable equity software program) for awards other than performance awards in which the number of shares to be issued can vary based on performance.  Such awards shall be recorded in spreadsheets maintained by Corporate Finance.

The Legal Department shall maintain a copy of all forms of grant agreements, notices or certificates currently in use.  The Legal Department shall on an annual basis review all standard forms of grant agreements, notices and certificates and recommend any suggested changes in such forms.  Any changes to the standard forms must be approved by the Compensation Committee and filed with the Securities and Exchange Commission if appropriate.

Terms and Conditions of All Equity Grants

Grant Date.  All grants shall be effective as of the date approved by the Compensation Committee or any later date specified in this policy or designated by the Compensation Committee at the time the grant is approved.  No changes may be made to the terms and conditions of any grants after approval, unless the Compensation Committee separately approves such modification.

Option Price.  The exercise price of an option shall be no less than the fair market value (as defined in the applicable plan) as of the date of grant.

Base Value.  The base value of a stock appreciation right shall be no less than the fair market value (as defined in the applicable plan) as of the date of grant.

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Vesting, Exercisability and Expiration.  All equity awards shall vest, become exercisable and expire (including expiration after termination of employment) as specified in the terms of the award or as later approved by the Compensation Committee.  In the case of performance-based awards, the determination as to vesting and exercisability may be made at the end of the performance period and may be general in nature (e.g., the Committee may determine that a level of performance has been met and the award sets forth the effect of such level of performance.)

Effect of Award Grant, Exercise and Vesting.

Options.  When options are granted, the underlying stock is not issued and outstanding unless and until the options vest and are validly exercised prior to maturity, including payment of the relevant exercise price.  When options are exercised, the optionee must provide Corporate Finance appropriate exercise documentation.  Corporate Finance shall (i) verify the exercise price and that the options are in fact exercisable, (ii) receive the exercise price for the options, and (iii) coordinate the payment of withholding taxes.  Upon a valid option exercise, Corporate Finance shall record a reduction in the number of options outstanding and the shares acquired upon exercise of the options shall be issued upon the request of Corporate Finance to the Company’s transfer agent.

Stock Appreciation Rights.  When stock appreciation rights are granted, the underlying stock is not issued and outstanding unless and until the stock appreciation rights vest and are validly exercised prior to maturity and the awards are settled in stock.  When stock appreciation rights are exercised, the grantee must provide Corporate Finance appropriate exercise documentation.  Corporate Finance shall (i) verify the base value of the award and that the stock appreciation rights are in fact exercisable, and (ii) coordinate the payment of withholding taxes.  Upon a valid exercise, Corporate Finance shall record a reduction in the number of stock appreciation rights outstanding and the shares acquired upon exercise of the stock appreciation rights, if the award is settled in stock, shall be issued upon the request of Corporate Finance to the Company’s transfer agent.

Restricted Stock.  Restricted stock constitutes issued and outstanding shares of common stock from the date of grant.  The shares shall be issued upon the request of Corporate Finance to the Company’s transfer agent.  If in certificated form, the certificates shall be held by Corporate Finance until vested.  If in book-entry form, the Company’s transfer agent shall make an entry in its records.  Shares of restricted stock shall not be not transferable until vested.

Unless and until the Compensation Committee provides otherwise, any dividends paid with respect to outstanding shares of time-vesting restricted stock or restricted stock unit awards will be accrued by the Company during the restricted period and paid to the holder thereof only if and when the related underlying awards vest and become non-forfeitable.

Unrestricted Stock.  Grants of unrestricted stock may be made pursuant to the Director’s Compensation Policy or to officers and employees as approved by the Compensation Committee.  Such shares shall be issued upon the request of Corporate Finance to the Company’s transfer agent or, with respect to shares issued as part of directors’ compensation, upon the request of the person responsible for administering the payment of director compensation.

Performance Shares or Restricted Stock Units.  When performance shares or restricted stock units (RSUs) are granted, the underlying stock is not issued and outstanding until the performance shares or RSUs vest and are converted to shares of stock.  Performance shares and RSUs shall be evidenced by an award certificate or agreement.  Dividend equivalents, if any, awarded with respect to performance shares or performance-contingent RSUs will be accrued by the Company during the restricted period and paid to the holder thereof only if and when the related underlying awards vest and become non-forfeitable.

- 4 -

Procedure.  Corporate Finance shall inform Human Resources and the Legal Department of the vesting of service-based awards.  Corporate Finance will inform Human Resources of the Compensation Committee’s determination of vesting with respect to performance-based awards and provide copies of documentation of such determination.  Corporate Finance shall arrange for delivery of stock to the recipient.  The shares underlying performance shares or RSUs shall be issued upon the request of Corporate Finance to the Company’s transfer agent, but only after receipt of appropriate vesting documentation.

Taxes and Withholding

Corporate Finance and Payroll shall coordinate the payment of withholding taxes due with respect to all awards.  Exercise of options or stock appreciation rights and vesting of restricted stock awards, and settlement of performance shares and RSUs generally are taxable as ordinary income to the grantee, which is reportable on Form W-2 in the case of employees and Form 1099 in the case of non-employees.  Subject to the terms of individual award agreements, notices or certificates, taxes may be paid in one of several ways:  (i) shares may be withheld in an amount equal to minimum required withholding amount (but no more) and a “net” number of shares shall be delivered to the employee (no withholding is permitted for directors or other recipients who are not employees), (ii) the employee may deliver a check or immediately available funds sufficient to cover at least the minimal amount of withholding tax, or (iii) an employee may engage in a “cashless” exercise of an option through a broker, if the broker is willing to provide this service for options or stock appreciation rights on Class B shares, in which the broker sells shares to pay withholding taxes and pays the Company through Corporate Finance an amount sufficient to pay withholding taxes by check or immediately available funds.  Corporate Finance shall report to Payroll the amount of ordinary income realized by a director or employee as a result of exercise of an option or stock appreciation right or the vesting or settlement of an award.

Stock Utilization Report and Quarterly Log

On a quarterly basis, Corporate Finance shall prepare and distribute stock plan utilization data to the Chief Executive Officer, Chief Financial Officer and General Counsel.  Such information shall include the effects of new award grants, option exercises, withholding and forfeitures.  A summary of the most recent quarterly report(s) shall be provided at each Compensation Committee meeting.

On a quarterly basis, Corporate Finance shall prepare a log of all awards granted in the quarter, which shall be signed by the Vice President and Corporate Controller to confirm such awards.  Corporate Finance shall also prepare a quarterly log of forfeitures due to departing directors and employees which shall be confirmed by Human Resources.

- 5 -

Accounting for Equity Based Compensation

Beginning in 2006, the Company adopted FASB Statement 123(R) (now known as FASB Accounting Standards Codification (ASC) Topic 718) which requires that all equity based awards be expensed based on the fair value of the award, net of estimated forfeitures.  When a new equity grant is authorized, the specifics of the transaction shall be recorded by Corporate Finance and Payroll in appropriate records.  Information entered into the records shall include:

· Name of grantee (each person entered has a specific ID in the software)

· In some cases the address and Social Security Number shall also be entered

· Date of grant

· Number of shares granted

· For restricted stock grants – the market price on the date of grant

· For stock options – the exercise price and option type (NQ, ISO)

· For stock appreciation rights – the base value

· Vesting period

· Plan name

· Tax election

· Estimated forfeiture rates by grant date

In addition to the grant specific information, Corporate Finance shall also enter the amortization method for compensation expense and the current tax rate for the Company.

Compensation expense for service-based equity awards shall be recorded and amortized on a ratable basis over the service period based on the fair value of the award as of the grant date.  Compensation expense for performance-based equity awards shall be recorded and amortized on a ratable basis over the performance period based on the fair value of the award as of the grant date.  An estimated forfeiture rate shall be calculated for each grant date and used to ensure that the correct compensation expense is recorded each period.  No less than annually, the forfeiture rate shall be addressed to ensure that it is still accurate – any changes necessary shall be made and recorded in the ledger.

Corporate Finance shall run the reports that calculate the monthly amortization.  These shall be checked for accuracy and forwarded to Accounting for entry into the general ledger.  Once entered into the system, the equity and expense balances on the books related to equity-based compensation shall be reviewed by the corporate controller for accuracy as part of the monthly financial close process.

Review Of This Policy

This Policy regarding the administration and accounting for stock options, stock appreciation rights, restricted stock and other equity awards shall be reviewed at least annually by the Compensation Committee.  From time to time as deemed appropriate by the Chief Executive Officer, the administrative procedures set forth in this policy may be modified as necessary prior to the annual review.

 - 6 -

EX-21

Exhibit No. 21

JOURNAL COMMUNICATIONS, INC.

Subsidiaries of the Registrant

The following list shows our significant subsidiaries as of December 30, 2012, their respective states of incorporation and the percentage of voting securities of each subsidiary owned by its immediate parent.  All companies listed have been included in the consolidated financial statements filed herewith.

		Percent of Voting
	State	Securities Owned
Subsidiary	of Incorporation	by Registrant
Journal Sentinel, Inc.	Wisconsin	100% by Registrant
Journal Broadcast Corporation (1)
(d/b/a Journal Broadcast Group)	Nevada	100% by Registrant
Journal Community Publishing Group, Inc.	Wisconsin	100% by Registrant
Journal Holdings, Inc.	Wisconsin	100% by Registrant

(1) Journal Broadcast Corporation has four subsidiaries operating in the United States.

EX-23

Exhibit No. 23

CONSENT OF INDEPENDENT REGISTERED PUBLIC ACCOUNTING FIRM

We hereby consent to the incorporation by reference in the Registration Statements on Form S-8 (Nos. 333-143146 and 333-108509) and Form S-3 (No. 333-118552) of Journal Communications, Inc. of our report dated March 13, 2013, relating to the financial statements, financial statement scheduleand the effectiveness of internal control over financial reporting, which appears in this Form 10-K.

/s/ PricewaterhouseCoopers LLP

PricewaterhouseCoopers LLP

Chicago, Illinois

March 13, 2013

EX-31.1

Exhibit No. 31.1

Certification of Chairman and Chief Executive Officer Pursuant to Section 302 of the Sarbanes-Oxley Act and Rule 13a-14(a) or 15(d)-14(a) under the Securities Exchange Act of 1934

I, Steven J. Smith, certify that:

1. I have reviewed this Annual Report on Form 10-K of Journal Communications, Inc.;

2. Based on my knowledge, this report does not contain any untrue statement of a material fact or omit to state a material fact necessary to make the statements made, in light of the circumstances under which such statements were made, not misleading with respect to the period covered by this report;

3. Based on my knowledge, the financial statements, and other financial information included in this report, fairly present in all material respects the financial condition, results of operations and cash flows of the registrant as of, and for, the periods presented in this report;

4. The registrant’s other certifying officer and I are responsible for establishing and maintaining disclosure controls and procedures (as defined in Exchange Act Rules 13a-15(e) and 15d-15(e)) and internal control over financial reporting (as defined in Exchange Act Rules 13a-15(f) and 15d-15(f)) for the registrant and have:

a) Designed such disclosure controls and procedures, or caused such disclosure controls and procedures to be designed under our supervision, to ensure that material information relating to the registrant, including its consolidated subsidiaries, is made known to us by others within those entities, particularly during the period in which this report is being prepared;

b) Designed such internal control over financial reporting, or caused such internal control over financial reporting to be designed under our supervision, to provide reasonable assurance regarding the reliability of financial reporting and the preparation of financial statements for external purposes in accordance with generally accepted accounting principles;

c) Evaluated the effectiveness of the registrant’s disclosure controls and procedures and presented in this report our conclusions about the effectiveness of the disclosure controls and procedures, as of the end of the period covered by this report based on such evaluation; and

d) Disclosed in this report any change in the registrant’s internal control over financial reporting that occurred during the registrant’s most recent fiscal quarter (the registrant’s fourth fiscal quarter in the case of an annual report) that has materially affected, or is reasonably likely to materially affect, the registrant’s internal control over financial reporting; and

5. The registrant’s other certifying officer and I have disclosed, based on our most recent evaluation of internal control over financial reporting, to the registrant’s auditors and the audit committee of the registrant’s board of directors (or persons performing the equivalent functions):

a) All significant deficiencies and material weaknesses in the design or operation of internal control over financial reporting which are reasonably likely to adversely affect the registrant’s ability to record, process, summarize and report financial information; and

b) Any fraud, whether or not material, that involves management or other employees who have a significant role in the registrant’s internal control over financial reporting.

Date:  March 13, 2013

/s/ Steven J. Smith

Steven J. Smith

Chairman and Chief Executive Officer

EX-31.2

Exhibit No. 31.2

Certification of President and Chief Financial Officer Pursuant to Section 302 of the Sarbanes-Oxley Act and Rule 13a-14(a) or 15(d)-14(a) under the Securities Exchange Act of 1934

I, Andre J. Fernandez, certify that:

1. I have reviewed this Annual Report on Form 10-K of Journal Communications, Inc.;

2. Based on my knowledge, this report does not contain any untrue statement of a material fact or omit to state a material fact necessary to make the statements made, in light of the circumstances under which such statements were made, not misleading with respect to the period covered by this report;

3. Based on my knowledge, the financial statements, and other financial information included in this report, fairly present in all material respects the financial condition, results of operations and cash flows of the registrant as of, and for, the periods presented in this report;

4. The registrant’s other certifying officer and I are responsible for establishing and maintaining disclosure controls and procedures (as defined in Exchange Act Rules 13a-15(e) and 15d-15(e)) and internal control over financial reporting (as defined in Exchange Act Rules 13a-15(f) and 15d-15(f)) for the registrant and have:

a) Designed such disclosure controls and procedures, or caused such disclosure controls and procedures to be designed under our supervision, to ensure that material information relating to the registrant, including its consolidated subsidiaries, is made known to us by others within those entities, particularly during the period in which this report is being prepared;

b) Designed such internal control over financial reporting, or caused such internal control over financial reporting to be designed under our supervision, to provide reasonable assurance regarding the reliability of financial reporting and the preparation of financial statements for external purposes in accordance with generally accepted accounting principles;

c) Evaluated the effectiveness of the registrant’s disclosure controls and procedures and presented in this report our conclusions about the effectiveness of the disclosure controls and procedures, as of the end of the period covered by this report based on such evaluation; and

d) Disclosed in this report any change in the registrant’s internal control over financial reporting that occurred during the registrant’s most recent fiscal quarter (the registrant’s fourth fiscal quarter in the case of an annual report) that has materially affected, or is reasonably likely to materially affect, the registrant’s internal control over financial reporting; and

5. The registrant’s other certifying officer and I have disclosed, based on our most recent evaluation of internal control over financial reporting, to the registrant’s auditors and the audit committee of the registrant’s board of directors (or persons performing the equivalent functions):

a) All significant deficiencies and material weaknesses in the design or operation of internal control over financial reporting which are reasonably likely to adversely affect the registrant’s ability to record, process, summarize and report financial information; and

b) Any fraud, whether or not material, that involves management or other employees who have a significant role in the registrant’s internal control over financial reporting.

Date:  March 13, 2013

/s/ Andre J. Fernandez

Andre J. Fernandez

President and Chief Financial Officer

EX-32

Exhibit No. 32

Certification of Steven J. Smith, Chairman and Chief Executive Officer and Andre J. Fernandez, President and Chief Financial Officer of Journal Communications, Inc., pursuant to 18 U.S.C. Section 1350

Solely for the purposes of complying with 18 U.S.C. s.1350, as adopted pursuant to Section 906 of the Sarbanes-Oxley Act of 2002, we, the undersigned Chairman and Chief Executive Officer and the President and Chief Financial Officer of Journal Communications, Inc. (the “Company”), hereby certify, based on our knowledge, that the Annual Report on Form 10-K of the Company for the year ended December 30, 2012 (the “Report”) fully complies with the requirements of Section 13(a) of the Securities Exchange Act of 1934 and that information contained in the Report fairly presents, in all material respects, the financial condition and results of operations of the Company.

/s/ Steven J. Smith

Steven J. Smith, Chairman and Chief Executive Officer

March 13, 2013

/s/ Andre J. Fernandez

Andre J. Fernandez, President and Chief Financial Officer

March 13, 2013

XML

QUARTERLY FINANCIAL INFORMATION (UNAUDITED) (Tables)

12 Months Ended

Dec. 30, 2012

QUARTERLY FINANCIAL INFORMATION (UNAUDITED) [Abstract]

Quarterly Financial Information

	2012 Quarters
	First		Second		Third		Fourth		Total
Revenue	$	82,266	$	95,507	$	97,755	$	124,514	$	400,042
Gross profit		33,817		46,271		44,703		66,962		191,753
Net earnings		2,919		7,611		7,698		15,097		33,325
Earnings per share
Basic - class A and B common stock		0.05		0.13		0.14		0.30		0.61
Diluted - class A and B common stock		0.05		0.13		0.14		0.30		0.61
Basic and diluted - class C common stock		0.19		0.28		0.15		-		0.74

	2011 Quarters
	First		Second		Third		Fourth		Total
Revenue	$	83,861	$	90,102	$	87,784	$	95,046	$	356,793
Gross profit		34,329		40,860		35,921		44,018		155,128
Net earnings		3,375		6,141		4,446		8,224		22,186
Earnings per share
Basic - class A and B common stock		0.05		0.10		0.07		0.14		0.37
Diluted - class A and B common stock		0.05		0.10		0.07		0.14		0.37
Basic and diluted - class C common stock		0.19		0.24		0.21		0.28		0.94

XML

SEGMENT REPORTING (Details) (USD $) In Thousands, unless otherwise specified	3 Months Ended								12 Months Ended
	Dec. 30, 2012	Sep. 23, 2012	Jun. 24, 2012	Mar. 25, 2012	Dec. 25, 2011	Sep. 25, 2011	Jun. 26, 2011	Mar. 27, 2011	Dec. 30, 2012	Dec. 25, 2011	Dec. 26, 2010
Summarization of revenue, operating earnings (loss), depreciation and amortization and capital expenditures and identifiable total assets [Abstract]
Revenue	$ 124,514	$ 97,755	$ 95,507	$ 82,266	$ 95,046	$ 87,784	$ 90,102	$ 83,861	$ 400,042	$ 356,793	$ 376,759
Operating earnings (loss)									59,992	39,782	53,024
Broadcast license impairment	1,681				879				1,681	879	0
Depreciation and amortization									22,850	23,331	24,629
Capital expenditures									12,736	10,661	9,391
Identifiable total assets	625,803				417,725				625,803	417,725
Broadcasting [Member]
Segment Reporting Information [Line Items]
Number of radio stations	34								34
Number of television stations									15
Number of states where broadcasting segment operates									12
Summarization of revenue, operating earnings (loss), depreciation and amortization and capital expenditures and identifiable total assets [Abstract]
Revenue									235,627	186,080	194,365
Operating earnings (loss)									56,228	31,001	43,559
Broadcast license impairment									1,681	879	0
Depreciation and amortization									13,013	12,297	12,747
Capital expenditures									10,750	8,531	7,770
Identifiable total assets	523,179				262,216				523,179	262,216
Publishing [Member]
Summarization of revenue, operating earnings (loss), depreciation and amortization and capital expenditures and identifiable total assets [Abstract]
Revenue									164,947	170,976	182,799
Operating earnings (loss)									11,622	15,901	18,222
Broadcast license impairment									0	0	0
Depreciation and amortization									9,170	10,412	11,382
Capital expenditures									1,240	987	1,068
Identifiable total assets	104,162				113,236				104,162	113,236
Corporate Eliminations [Member]
Summarization of revenue, operating earnings (loss), depreciation and amortization and capital expenditures and identifiable total assets [Abstract]
Revenue									(532)	(263)	(405)
Corporate [Member]
Summarization of revenue, operating earnings (loss), depreciation and amortization and capital expenditures and identifiable total assets [Abstract]
Operating earnings (loss)									(7,858)	(7,120)	(8,757)
Broadcast license impairment									0	0	0
Depreciation and amortization									667	622	500
Capital expenditures									746	1,143	553
Corporate And Discontinued Operations [Member]
Summarization of revenue, operating earnings (loss), depreciation and amortization and capital expenditures and identifiable total assets [Abstract]
Identifiable total assets	$ (1,538)				$ 42,273				$ (1,538)	$ 42,273

XML

VARIABLE INTEREST ENTITY (Details) (USD $) In Thousands, unless otherwise specified	12 Months Ended
	Dec. 30, 2012
VARIABLE INTEREST ENTITY [Abstract]
Purchase price of assets of variable interest entity	$ 2,038
Consolidation of net assets of variable interest entity	$ 1,164

XML

QUARTERLY FINANCIAL INFORMATION (UNAUDITED) (Details) (USD $) In Thousands, except Per Share data, unless otherwise specified	3 Months Ended									12 Months Ended
	Dec. 30, 2012	Sep. 23, 2012	Jun. 24, 2012	Mar. 25, 2012	Dec. 25, 2011	Sep. 25, 2011	Jun. 26, 2011	Mar. 26, 2011	Mar. 27, 2011	Dec. 30, 2012	Dec. 25, 2011	Dec. 26, 2010
Selected Quarterly Financial Information [Abstract]
Revenue	$ 124,514	$ 97,755	$ 95,507	$ 82,266	$ 95,046	$ 87,784	$ 90,102		$ 83,861	$ 400,042	$ 356,793	$ 376,759
Gross profit	66,962	44,703	46,271	33,817	44,018	35,921	40,860		34,329	191,753	155,128
Net earnings	15,097	7,698	7,611	2,919	8,224	4,446	6,141		3,375	33,325	22,186	34,381
Earnings per share
Basic - class A and B common stock (in dollars per share)	$ 0.30	$ 0.14	$ 0.13	$ 0.05	$ 0.14	$ 0.07	$ 0.10		$ 0.05	$ 0.61	$ 0.37	$ 0.59
Diluted - class A and B common stock (in dollars per share)	$ 0.30	$ 0.14	$ 0.13	$ 0.05	$ 0.14	$ 0.07	$ 0.10		$ 0.05	$ 0.61	$ 0.37	$ 0.59
Basic and diluted - class C common stock (in dollars per share)	$ 0	$ 0.15	$ 0.28	$ 0.19	$ 0.28	$ 0.21	$ 0.24		$ 0.19	$ 0.74	$ 0.94	$ 1.16
Pre-tax charge for separation benefits	29	553	1,035	38	332	1,308
Pre-tax long-lived asset impairment charge										493
Pre-tax gain on the sale	(319)					253	245	562
Broadcast license impairment	$ 1,681				$ 879					$ 1,681	$ 879	$ 0

XML

SHAREHOLDERS' EQUITY (Details) (USD $) In Thousands, except Share data, unless otherwise specified	12 Months Ended
	Dec. 30, 2012	Dec. 25, 2011	Dec. 26, 2010
Class of Stock [Line Items]
Stock repurchase	$ (25,944)
Number of classes of common stock	2
Class C [Member]
Class of Stock [Line Items]
Stock repurchase	6,246
Unpaid and undeclared dividends		$ 5,100
Changes in number of shares of common stock (excluding Treasury stock) [Roll Forward]
Balance (in shares)	3,264,000	3,264,000	3,264,000
Conversion of class B shares to class A shares (in shares)	0	0	0
Shares repurchased (in shares)	(3,264,000)	0
Shares issued under equity incentive and employee stock purchase plans (in shares)	0	0	0
Balance (in shares)	0	3,264,000	3,264,000
Class B [Member]
Class of Stock [Line Items]
Number of votes per share	10
Shares retired held in treasury stock (in shares)		8,677,000
Changes in number of shares of common stock (excluding Treasury stock) [Roll Forward]
Balance (in shares)	7,214,374	8,595,000	9,642,000
Conversion of class B shares to class A shares (in shares)	(682,000)	(1,683,000)	(1,413,000)
Shares repurchased (in shares)		0
Shares issued under equity incentive and employee stock purchase plans (in shares)	374,000	302,000	366,000
Balance (in shares)	6,905,955	7,214,374	8,595,000
Class A [Member]
Changes in number of shares of common stock (excluding Treasury stock) [Roll Forward]
Balance (in shares)	43,778,922	43,196,000	41,783,000
Conversion of class B shares to class A shares (in shares)	682,000	1,683,000	1,413,000
Shares repurchased (in shares)	(710,000)	(1,100,000)
Shares issued under equity incentive and employee stock purchase plans (in shares)	0	0	0
Balance (in shares)	43,750,920	43,778,922	43,196,000

XML

STOCK-BASED COMPENSATION (Tables)

12 Months Ended

Dec. 30, 2012

STOCK-BASED COMPENSATION [Abstract]

Summary of non-vested restricted stock grant activity

A summary of stock grant activity during 2012 is:

				Weighted
				Average Grant
	Shares			Date Fair Value
Non-vested at December 25, 2011		657		$	3.89
Granted		382			5.12
Vested		(492	)		3.28
Forfeited		(9	)		4.91
Non-vested at December 30, 2012		538		$	5.30

Summary of SAR activity

A summary of SAR activity during 2012 is:

					Weighted
					Average
			Weighted		Contractual Term
			Average		Remaining
	SARS		Exercise Price		(years)
December 25, 2011
Outstanding and exercisable		1,083	$	10.71		5.6
December 30, 2012
Outstanding and exercisable		1,083	$	10.71		4.6

All SARs have vested. The aggregate intrinsic value of the SARs outstanding and exercisable at the end of 2012 is zero because the fair market value of our class B common stock on December 30, 2012 was lower than the weighted average exercise price of the SARs.

XML

QUARTERLY FINANCIAL INFORMATION (UNAUDITED)

12 Months Ended

Dec. 30, 2012

QUARTERLY FINANCIAL INFORMATION (UNAUDITED) [Abstract]

QUARTERLY FINANCIAL INFORMATION (UNAUDITED)

15    QUARTERLY FINANCIAL INFORMATION (UNAUDITED)

	2012 Quarters
	First		Second		Third		Fourth		Total
Revenue	$	82,266	$	95,507	$	97,755	$	124,514	$	400,042
Gross profit		33,817		46,271		44,703		66,962		191,753
Net earnings		2,919		7,611		7,698		15,097		33,325
Earnings per share
Basic - class A and B common stock		0.05		0.13		0.14		0.30		0.61
Diluted - class A and B common stock		0.05		0.13		0.14		0.30		0.61
Basic and diluted - class C common stock		0.19		0.28		0.15		-		0.74

	2011 Quarters
	First		Second		Third		Fourth		Total
Revenue	$	83,861	$	90,102	$	87,784	$	95,046	$	356,793
Gross profit		34,329		40,860		35,921		44,018		155,128
Net earnings		3,375		6,141		4,446		8,224		22,186
Earnings per share
Basic - class A and B common stock		0.05		0.10		0.07		0.14		0.37
Diluted - class A and B common stock		0.05		0.10		0.07		0.14		0.37
Basic and diluted - class C common stock		0.19		0.24		0.21		0.28		0.94

The first quarter of 2012 includes a pre-tax charge of $38 for separation benefits at our publishing business. The second quarter of 2012 includes a pre-tax charge of $1,035 for separation benefits at our publishing business. The third quarter of 2012 includes a pre-tax charge of $553 for separation benefits at our publishing business and a pre-tax long-lived asset impairment charge of $493. The fourth quarter of 2012 includes a pre-tax broadcast license impairment charge of $1,681, a pre-tax loss of $319 on the sale of our northern Wisconsin community newspapers and shopper publications and a pre-tax charge of $29 for separation benefits at our publishing business.

The first quarter of 2011 includes a pre-tax gain of $562 on the sale of NorthStar. The second quarter of 2011 includes a pre-tax gain on the sale of Florida-based community newspapers and shoppers businesses of $245. The third quarter of 2011 includes a pre-tax gain on the sale of the remaining Florida-based community newspapers and shoppers of $253 and a pre-tax charge of $1,308 for separation benefits at our publishing business. The fourth quarter of 2011 includes a pre-tax broadcast license impairment charge of $879 and a pre-tax charge of $332 for separation benefits at our publishing business.

XML

ACQUISITIONS AND DIVESTITURES (Details) (USD $) In Thousands, unless otherwise specified	3 Months Ended				12 Months Ended				1 Months Ended		12 Months Ended			12 Months Ended
	Dec. 30, 2012	Sep. 25, 2011	Jun. 26, 2011	Mar. 26, 2011	Dec. 30, 2012	Dec. 25, 2011	Dec. 26, 2010	Dec. 30, 2012 KHTT-FM and KBEZ-FM [Member]	Dec. 30, 2012 NewsChannel 5 Network, LLC [Member]	Dec. 06, 2012 NewsChannel 5 Network, LLC [Member]	Dec. 30, 2012 WKTI-AM in Knoxville, Tennessee [Member]	Dec. 30, 2012 Tulsa, Oklahoma [Member]	Dec. 30, 2012 Affiliation Agreement ACE TV [Member]	Dec. 30, 2012 Hodag Buyers' Guide and Other Miscellaneous [Member]	Dec. 30, 2012 Hodag Buyers' Guide and Other Miscellaneous [Member] Cash [Member]	Dec. 30, 2012 Hodag Buyers' Guide and Other Miscellaneous [Member] Promissory Note [Member]	Dec. 30, 2012 Nashville, Tennessee [Member]
Business Acquisition [Line Items]
Effective date of business acquisition								Jun. 25, 2012
Cash Paid to acquire the entity								$ 11,728
Number of radio stations												5
Identifiable Assets acquired and Liabilities assumed [Abstract]
Goodwill	125,818				125,818	8,670	9,098										116,124
Total purchase price										222,000			2,038
Weighted average period before broadcast license renewal					7 months 6 days			8 months 12 days
Proceeds from sale of businesses		757	502		2,904	1,574	14,044				65				1,200	772
Pre-tax gain on sale, net of transaction expenses	(319)	253	245	562							48			319
Maximum working capital adjustment										5,000
Revenue contributed									2,917
Earnings from continuing operations before income taxes					55,531	36,257	49,743		1,730
Acquisition and integration related costs	$ 2,152				$ 3,145

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NOTES PAYABLE TO BANKS (Details) (USD $) In Thousands, except Share data, unless otherwise specified	12 Months Ended				3 Months Ended	12 Months Ended							12 Months Ended									3 Months Ended	12 Months Ended
	Dec. 30, 2012	Dec. 25, 2011	Dec. 26, 2010	Dec. 30, 2012 Class A [Member]	Sep. 23, 2012 Class C [Member]	Dec. 30, 2012 Class C [Member]	Dec. 30, 2012 Secured Debt [Member]	Dec. 05, 2012 Secured Debt [Member]	Dec. 30, 2012 Term Loan [Member]	Dec. 05, 2012 Term Loan [Member]	Dec. 30, 2012 Revolving Credit Facility [Member]	Dec. 05, 2012 Revolving Credit Facility [Member]	Dec. 30, 2012 LIBOR [Member] Secured Debt [Member]	Dec. 30, 2012 Federal Funds Rate [Member]	Dec. 30, 2012 Federal Funds Rate [Member] Secured Debt [Member]	Dec. 30, 2012 One Month LIBOR [Member]	Dec. 30, 2012 One Month LIBOR [Member] Secured Debt [Member]	Dec. 30, 2012 Minimum [Member] Secured Debt [Member]	Dec. 30, 2012 Minimum [Member] LIBOR [Member]	Dec. 30, 2012 Maximum [Member] Secured Debt [Member]	Dec. 30, 2012 Maximum [Member] LIBOR [Member]	Sep. 23, 2012 Unsecured subordinated notes payable [Member]	Dec. 30, 2012 Unsecured subordinated notes payable [Member]	Aug. 13, 2012 Unsecured subordinated notes payable [Member]
Line of Credit Facility [Line Items]
Secured credit facility								$ 350,000		$ 150,000		$ 200,000
Expiration date of secured credit facility	Dec. 05, 2017
Secured term loan facility amortized percentage (in hundredths)	10.00%
Long-term Line of Credit									150,000		80,095
Incremental commitments, maximum							450,000
Description of variable rate basis													LIBOR		Federal Funds Rate plus		one-month LIBOR
Debt instruments basis spread on variable rate (in basis points)													225.0	50.0		100.0		50.0	150.0	150.0	250.0
Consolidated funded debt ratio of financial covenant as a multiple	3.75
Minimum interest coverage ratio of financial covenant as a multiple	3
Fiscal quarter period preceding the date of determination of ratio	4
Borrowings	230,095	41,305
Credit facility's weighted average interest rate (in hundredths)	2.53%	2.65%
Fees in connection with the credit facility	4,727
Fair value of our secured credit facility	224,752	40,988
Discounted cash flows interest rate for fair value of secured credit facility (in hundredths)	3.08%	3.05%																					7.26%
Scheduled minimum repayments of secured loan facility
2013									11,250														2,656
2014									15,000														2,656
2015									15,000														2,656
2016									15,000														2,656
Thereafter	93,750																						5,311
Stock repurchased during period (in shares)	3,264,000				3,264	3,264,000
Payments for repurchase of common stock	6,246	0	0		6,246	6,246
Number of promissory notes issued	4																					15
Aggregate principal amount of promissory notes																								25,599
Interest rate of notes issued (in hundredths)																								7.25%
Number of trading days to consider weighted average price																							5 days
Weighted average price of shares (in dollars per share)				$ 5.75
Ratio of class C shares convertible into Class A under option one				1.363970		1.363970
Number of Class A shares resulting from conversion of class C shares under option one				4,451,998
Number of remaining subordinated notes																							6
Note payable repaid on September 21, 2012	9,664																					1,340
Note payable due on December 31, 2012																							8,324
Total remaining principle amount of eight subordinated notes	13,279	0																					15,935
Scheduled minimum repayments of unsecured notes payable [Abstract]
2013									11,250														2,656
2014									15,000														2,656
2015									15,000														2,656
2016									15,000														2,656
Thereafter	93,750																						5,311
Number of installments payable for remaining eight notes																							6
Fair value of unsecured subordinated notes payable																							$ 16,188
Discounted cash flows interest rate for fair value of debt (in hundredths)	3.08%	3.05%																					7.26%

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WORKFORCE REDUCTION (Tables)

12 Months Ended

Dec. 30, 2012

WORKFORCE REDUCTION [Abstract]

Activity associated with workforce reductions

Activity associated with workforce reductions during the years ended December 30, 2012 and December 25, 2011 was as follows:

	Balance as of		Charge for		Payments for			Balance as of
	December 25, 2011		Separation Benefits		Separation Benefits			December 30, 2012
	(dollars in millions)
Publishing	$	1,780	$	1,655	$	(2,626	)	$	809
Total	$	1,780	$	1,655	$	(2,626	)	$	809

	Balance as of		Charge for		Payments for			Balance as of
	December 26, 2010		Separation Benefits		Separation Benefits			December 25, 2011
	(dollars in millions)
Publishing	$	1,437	$	1,654	$	(1,311	)	$	1,780
Total	$	1,437	$	1,654	$	(1,311	)	$	1,780

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WORKFORCE REDUCTION (Details) (USD $) In Millions, unless otherwise specified	12 Months Ended
	Dec. 30, 2012	Dec. 25, 2011
Restructuring Reserve [Roll Forward]
Balance	$ 1,780	$ 1,437
Charge for Separation Benefits	1,655	1,654
Payments for Separation Benefits	(2,626)	(1,311)
Balance	809	1,780
Decrease in employees (in hundredths)	15.10%
Publishing [Member]
Restructuring Reserve [Roll Forward]
Balance	1,780	1,437
Charge for Separation Benefits	1,655	1,654
Payments for Separation Benefits	(2,626)	(1,311)
Balance	$ 809	$ 1,780

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STOCK-BASED COMPENSATION (Details) (USD $) In Thousands, except Per Share data, unless otherwise specified	12 Months Ended				3 Months Ended	12 Months Ended													12 Months Ended
	Dec. 30, 2012	Dec. 25, 2011	Dec. 26, 2010	Dec. 30, 2012 Common Stock Class A and B [Member]	Mar. 25, 2012 Performance Units [Member]	Dec. 30, 2012 Performance Units [Member]	Dec. 30, 2012 Stock Appreciation Rights [Member]	Dec. 25, 2011 Stock Appreciation Rights [Member]	Dec. 25, 2011 Unrestricted and Non-Vested Restricted Stock Grants [Member]	Dec. 26, 2010 Unrestricted and Non-Vested Restricted Stock Grants [Member]	Dec. 25, 2011 Unrestricted and Non-Vested Restricted Stock Grants [Member] Non-Employee Directors [Member]	Dec. 26, 2010 Unrestricted and Non-Vested Restricted Stock Grants [Member] Non-Employee Directors [Member]	Dec. 25, 2011 Unrestricted and Non-Vested Restricted Stock Grants [Member] Employees [Member]	Dec. 26, 2010 Unrestricted and Non-Vested Restricted Stock Grants [Member] Employees [Member]	Dec. 30, 2012 Restricted Stock [Member]	Dec. 30, 2012 Restricted Stock [Member] Minimum [Member]	Dec. 30, 2012 Restricted Stock [Member] Maximum [Member]	Dec. 30, 2012 2007 Journal Communications, Inc. Omnibus Incentive Plan [Member]	Dec. 30, 2012 Employee Stock Purchase Plan [Member]	Dec. 30, 2012 Employee Stock Purchase Plan [Member] Class B Common Stock [Member]	Dec. 30, 2012 Employee Stock Purchase Plan [Member] Employees [Member] Class B Common Stock [Member]
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Shares available for issuance under the 2007 Plan (in shares)				4,800														2,360
Stock-based compensation expense	$ 2,056	$ 1,649	$ 1,821
Stock based compensation expense included in the net gain from discontinued operations			136
Total income tax benefit recognized related to stock-based compensation	822	656	698
Total unrecognized compensation cost related to stock-based compensation awards	2,038
Total unrecognized compensation cost, period for recognition	1 year 2 months 12 days
Shares [Abstract]
Non-vested at December 25, 2011 (in shares)															657
Granted (in shares)					77				368	427	101	106	267	321	382					57
Vested (in shares)									185	336					(492)
Forfeited (in shares)															(9)
Non-vested at December 30, 2012 (in shares)						77									538				2,207
Weighted Average Fair Value [Abstract]
Non-vested at December 25, 2011 (in dollars per share)															$ 3.89
Granted (in dollars per share)					$ 5.59				$ 5.63	$ 4.36					$ 5.12						$ 4.25
Vested (in dollars per share)															$ 3.28
Forfeited (in dollars per share)															$ 4.91
Non-vested at December 30, 2012 (in dollars per share)															$ 5.30
Award vesting period						3 years	3 years									1 year	4 years
Weighted average remaining service period fully vested															1 year 2 months 12 days
Total fair value of shares vesting									1,003	1,128					1,613
Stock appreciation rights [Abstract]
Term during which any SAR may be exercised	10 years
Escalating price per year on outstanding stock based payment awards (in hundredths)							6.00%
SAR [Abstract]
Outstanding and exercisable (in shares)							1,083	1,083
Weighted Average Exercise Price [Abstract]
Outstanding and exercisable (in dollars per share)							$ 10.71	$ 10.71
Weighted Average Contractual Term Remaining (years) [Abstract]
Outstanding and exercisable							4 years 7 months 6 days	5 years 7 months 6 days
Total grant date fair value									$ 1,003	$ 1,128					$ 1,613
Purchase price of common stock percent (in hundredths)																			90.00%
Employee stock purchase plan discount percent (in hundredths)																			10.00%
Common stock authorized for sale under the plan																				3,000

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CONSOLIDATED STATEMENTS OF EQUITY (Parenthetical) (Class C [Member], USD $)	12 Months Ended
	Dec. 30, 2012	Dec. 25, 2011	Dec. 26, 2010
Class C [Member]
Comprehensive income (loss):
Class C minimum dividends (in dollars per share)	$ 0.35	$ 0.57	$ 0.57

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EMPLOYEE BENEFIT PLANS (Details) (USD $)	1 Months Ended	12 Months Ended
	Feb. 28, 2009	Dec. 30, 2012	Dec. 25, 2011	Dec. 26, 2010
Defined Benefit Plan Disclosure [Line Items]
Number of years taken for calculation of benefit plan		5 years
Age of employees before 2006 to take post retirement health benefits		50
Age of employees who retire after 2007		65
Change in plan assets [Roll Forward]
Company contributions		$ 1,979,000	$ 2,070,000	$ 0
Amounts recognized in accumulated other comprehensive loss, Pension Benefits [Abstract]
Current year change, Total		2,757,000	20,687,000	(2,192,000)
Accumulated benefit obligation for pension plans		182,004,000	171,028,000
Amortization of:
Unrecognized net loss and prior service credit for, accumulated other comprehensive income into net periodic benefit cost over the next fiscal year		2,787,000	(10,000)
Prior service credit and transition obligation for, other accumulated comprehensive income into net periodic benefit cost over the next fiscal year		(219,000)	0
Weighted-average assumptions used to determine net periodic benefit cost [Abstract]
Rate of compensation increases (in hundredths)		7.25%
Assumed health care cost trend rate used in measuring the postretirement benefit obligation for retirees (in hundredths)		9.50%
Assumed health care cost trend rate, grading down (in hundredths)		5.00%
1% change in the assumed health care cost trend rate [Abstract]
Effect of 1% increase on total of service and interest cost components		83,000
Effect of 1% decrease on total of service and interest cost components		(78,000)
Effect of 1% increase on postretirement benefit obligation		223,000
Effect of 1% decrease on postretirement benefit obligation		(215,000)
Fair value of our plan assets by level of fair value hierarchy [Abstract]
Fair value of plan assets, Gross		102,602,000	96,641,000
Unsettled trades of common stock		0	58,000
Fair value of plan assets, Net		102,602,000	96,699,000
Pension plan weighted average asset allocations, by asset category [Abstract]
Pension plan weighted average asset allocations (in hundredths)		100.00%	100.00%
Asset mix guidelines for the plan [Abstract]
Contributions to defined benefit pension plan		1,979,000	2,070,000	0
Benefit payments, which are expected to be paid with future contributions
Percentage of eligible wages of employees, on pre-tax basis (in hundredths)		50.00%
Percentage of eligible wages of employees, on after-tax basis (in hundredths)		50.00%
Maximum combined total contribution for employees wages (in hundredths)		50.00%
Contribution of each dollar by the participant	0.50		0.50
Active employees contribution period		18 months
Contributions recorded as operating expense		1,979,000	2,070,000	0
Pension Benefits [Member]
Change in benefit obligations [Roll Forward]
Benefit obligation at beginning of year		171,028,000	151,151,000
Service cost		0	0	0
Interest cost		7,578,000	7,850,000	8,197,000
Actuarial loss		12,322,000	20,941,000
Benefits paid		(8,924,000)	(8,914,000)
Benefit obligation at end of year		182,004,000	171,028,000	151,151,000
Change in plan assets [Roll Forward]
Fair value of plan assets at beginning of year		96,699,000	109,103,000
Actual gain (loss) on plan assets		11,672,000	(3,865,000)
Company contributions		3,155,000	375,000
Benefits paid		(8,924,000)	(8,914,000)
Fair value of plan assets at end of year		102,602,000	96,699,000	109,103,000
Funded status		(79,402,000)	(74,329,000)
Amounts recognized in consolidated balance sheets [Abstract]
Current liabilities		(476,000)	(489,000)
Noncurrent liabilities		(78,926,000)	(73,840,000)
Total		(79,402,000)	(74,329,000)
Amounts recognized in accumulated other comprehensive loss, Pension Benefits [Abstract]
Actuarial Loss, Net		93,217,000	86,151,000
Current year change, Actuarial Loss Net		7,066,000
Prior Service Credit		(48,000)	(58,000)
Current year change, Prior Service Credit		10,000
Deferred Income Taxes		(37,052,000)	(34,268,000)
Current year change, Deferred Income Taxes		(2,784,000)
Total		56,117,000	51,825,000
Current year change, Total		4,292,000
Components of net periodic benefit (income) costs for our defined benefit and non-qualified pension plans and our postretirement health benefit plan [Abstract]
Service cost		0	0	0
Interest cost		7,578,000	7,850,000	8,197,000
Expected return on plan assets		(8,454,000)	(9,594,000)	(10,224,000)
Curtailment gain		0	0	(1,109,000)
Amortization of:
Unrecognized prior service credit		(10,000)	(10,000)	(131,000)
Unrecognized net loss		2,038,000	979,000	3,080,000
Net periodic benefit cost included in operating costs and expenses and selling and administrative expenses, Total		1,152,000	(775,000)	(187,000)
Weighted-average assumptions used to determine benefit obligations [Abstract]
Discount rate (in hundredths)		3.95%	4.55%
Rate of compensation increases (in hundredths)		0.00%	0.00%
Weighted-average assumptions used to determine net periodic benefit cost [Abstract]
Discount rate (in hundredths)		4.55%	5.35%
Expected return on plan assets (in hundredths)		7.75%	8.25%
Rate of compensation increases (in hundredths)		0.00%	0.00%	4.80%
Asset mix guidelines for the plan [Abstract]
Contributions to defined benefit pension plan		3,155,000	375,000
Benefit payments, which are expected to be paid with future contributions
2013		9,194,000
2014		9,411,000
2015		9,644,000
2016		9,787,000
2017		9,935,000
2018-2022		51,948,000
Contributions recorded as operating expense		3,155,000	375,000
Other Postretirement Benefits [Member]
Change in benefit obligations [Roll Forward]
Benefit obligation at beginning of year		17,274,000	17,342,000
Service cost		14,000	53,000	85,000
Interest cost		630,000	827,000	951,000
Actuarial loss		(2,010,000)	1,009,000
Benefits paid		(1,300,000)	(1,957,000)
Benefit obligation at end of year		14,608,000	17,274,000	17,342,000
Change in plan assets [Roll Forward]
Fair value of plan assets at beginning of year		0	0
Actual gain (loss) on plan assets		0	0
Company contributions		1,300,000	1,957,000
Benefits paid		(1,300,000)	(1,957,000)
Fair value of plan assets at end of year		0	0	0
Funded status		(14,608,000)	(17,274,000)
Amounts recognized in consolidated balance sheets [Abstract]
Current liabilities		(1,645,000)	(1,850,000)
Noncurrent liabilities		(12,963,000)	(15,424,000)
Total		(14,608,000)	(17,274,000)
Amounts recognized in accumulated other comprehensive loss, Pension Benefits [Abstract]
Actuarial Loss, Net		183,000	2,381,000
Current year change, Actuarial Loss Net		(2,198,000)
Prior Service Credit		(783,000)	(1,002,000)
Current year change, Prior Service Credit		219,000
Transition Obligation		0	546,000
Current year change, Transition Obligation		(546,000)
Deferred Income Taxes		222,000	(768,000)
Current year change, Deferred Income Taxes		990,000
Total		(378,000)	1,157,000
Current year change, Total		(1,535,000)
Components of net periodic benefit (income) costs for our defined benefit and non-qualified pension plans and our postretirement health benefit plan [Abstract]
Service cost		14,000	53,000	85,000
Interest cost		630,000	827,000	951,000
Amortization of:
Unrecognized prior service credit		(219,000)	(219,000)	(219,000)
Unrecognized net transition obligation		546,000	549,000	549,000
Unrecognized net loss		188,000	0	0
Net periodic benefit cost included in operating costs and expenses and selling and administrative expenses, Total		1,159,000	1,210,000	1,366,000
Weighted-average assumptions used to determine benefit obligations [Abstract]
Discount rate (in hundredths)		2.75%	3.85%
Rate of compensation increases (in hundredths)		0.00%	0.00%
Weighted-average assumptions used to determine net periodic benefit cost [Abstract]
Discount rate (in hundredths)		3.85%	4.95%	5.50%
Expected return on plan assets (in hundredths)		0.00%	0.00%	0.00%
Rate of compensation increases (in hundredths)		0.00%	0.00%	0.00%
Asset mix guidelines for the plan [Abstract]
Contributions to defined benefit pension plan		1,300,000	1,957,000
Benefit payments, which are expected to be paid with future contributions
2013		1,645,000
2014		1,585,000
2015		1,538,000
2016		1,479,000
2017		1,447,000
2018-2022		5,667,000
Contributions recorded as operating expense		1,300,000	1,957,000
Qualified Defined Benefit Pension Plan [Member]
Change in plan assets [Roll Forward]
Company contributions		2,768,000
Asset mix guidelines for the plan [Abstract]
Contributions to defined benefit pension plan		2,768,000
Benefit payments, which are expected to be paid with future contributions
Contributions recorded as operating expense		2,768,000
Unfunded Non-Qualified Pension Plan [Member]
Asset mix guidelines for the plan [Abstract]
Expected contribution to pension plan in 2013		476,000
MAP - 21 [Member]
Asset mix guidelines for the plan [Abstract]
Expected contribution to pension plan in 2013		910,000
Cash [Member]
Fair value of our plan assets by level of fair value hierarchy [Abstract]
Fair value of plan assets, Gross		715,000
Common stocks [Member]
Fair value of our plan assets by level of fair value hierarchy [Abstract]
Fair value of plan assets, Gross			9,503,000
Mutual funds [Member]
Fair value of our plan assets by level of fair value hierarchy [Abstract]
Fair value of plan assets, Gross		89,430,000	74,665,000
Money-market fund [Member]
Fair value of our plan assets by level of fair value hierarchy [Abstract]
Fair value of plan assets, Gross		7,000	455,000
Collective trust fund [Member]
Fair value of our plan assets by level of fair value hierarchy [Abstract]
Fair value of plan assets, Gross		12,450,000	12,018,000
Equity securities [Member]
Pension plan weighted average asset allocations, by asset category [Abstract]
Pension plan weighted average asset allocations (in hundredths)		65.20%	69.10%
Large capitalization U.S. stocks [Member]
Asset mix guidelines for the plan [Abstract]
Minimum (in hundredths)		30.00%
Target (in hundredths)		35.00%
Maximum (in hundredths)		40.00%
Small capitalization U.S. stocks [Member]
Asset mix guidelines for the plan [Abstract]
Minimum (in hundredths)		15.00%
Target (in hundredths)		20.00%
Maximum (in hundredths)		25.00%
International stock [Member]
Asset mix guidelines for the plan [Abstract]
Minimum (in hundredths)		10.00%
Target (in hundredths)		15.00%
Maximum (in hundredths)		20.00%
Fixed-income securities [Member]
Pension plan weighted average asset allocations, by asset category [Abstract]
Pension plan weighted average asset allocations (in hundredths)		34.90%	30.40%
Asset mix guidelines for the plan [Abstract]
Minimum (in hundredths)		20.00%
Target (in hundredths)		25.00%
Maximum (in hundredths)		35.00%
Cash Equivalents [Member]
Asset mix guidelines for the plan [Abstract]
Minimum (in hundredths)		0.00%
Target (in hundredths)		5.00%
Maximum (in hundredths)		5.00%
Other [Member]
Pension plan weighted average asset allocations, by asset category [Abstract]
Pension plan weighted average asset allocations (in hundredths)		(0.10%)	0.50%
Minimum [Member]
Benefit payments, which are expected to be paid with future contributions
Percentage of eligible wages of employees, on pre-tax basis (in hundredths)	2.50%		3.50%
Minimum [Member] | Pension Benefits [Member]
Weighted-average assumptions used to determine net periodic benefit cost [Abstract]
Discount rate (in hundredths)				4.70%
Expected return on plan assets (in hundredths)				8.25%
Maximum [Member]
Benefit payments, which are expected to be paid with future contributions
Percentage of eligible wages of employees, on pre-tax basis (in hundredths)	5.00%		7.00%
Maximum [Member] | Pension Benefits [Member]
Weighted-average assumptions used to determine net periodic benefit cost [Abstract]
Discount rate (in hundredths)				5.70%
Expected return on plan assets (in hundredths)				8.50%
Level 1 Inputs [Member]
Fair value of our plan assets by level of fair value hierarchy [Abstract]
Fair value of plan assets, Gross		90,152,000	75,120,000
Unsettled trades of common stock		0	0
Fair value of plan assets, Net		90,152,000	75,120,000
Level 1 Inputs [Member] | Cash [Member]
Fair value of our plan assets by level of fair value hierarchy [Abstract]
Fair value of plan assets, Gross		715,000
Level 1 Inputs [Member] | Common stocks [Member]
Fair value of our plan assets by level of fair value hierarchy [Abstract]
Fair value of plan assets, Gross			0
Level 1 Inputs [Member] | Mutual funds [Member]
Fair value of our plan assets by level of fair value hierarchy [Abstract]
Fair value of plan assets, Gross		89,430,000	74,665,000
Level 1 Inputs [Member] | Money-market fund [Member]
Fair value of our plan assets by level of fair value hierarchy [Abstract]
Fair value of plan assets, Gross		7,000	455,000
Level 1 Inputs [Member] | Collective trust fund [Member]
Fair value of our plan assets by level of fair value hierarchy [Abstract]
Fair value of plan assets, Gross		0	0
Level 2 Inputs [Member]
Fair value of our plan assets by level of fair value hierarchy [Abstract]
Fair value of plan assets, Gross		12,450,000	21,521,000
Unsettled trades of common stock		0	58,000
Fair value of plan assets, Net		12,450,000	21,579,000
Level 2 Inputs [Member] | Cash [Member]
Fair value of our plan assets by level of fair value hierarchy [Abstract]
Fair value of plan assets, Gross		0
Level 2 Inputs [Member] | Common stocks [Member]
Fair value of our plan assets by level of fair value hierarchy [Abstract]
Fair value of plan assets, Gross			9,503,000
Level 2 Inputs [Member] | Mutual funds [Member]
Fair value of our plan assets by level of fair value hierarchy [Abstract]
Fair value of plan assets, Gross		0	0
Level 2 Inputs [Member] | Money-market fund [Member]
Fair value of our plan assets by level of fair value hierarchy [Abstract]
Fair value of plan assets, Gross		0	0
Level 2 Inputs [Member] | Collective trust fund [Member]
Fair value of our plan assets by level of fair value hierarchy [Abstract]
Fair value of plan assets, Gross		12,450,000	12,018,000
Level 3 Inputs [Member]
Fair value of our plan assets by level of fair value hierarchy [Abstract]
Fair value of plan assets, Gross		0	0
Unsettled trades of common stock		0	0
Fair value of plan assets, Net		0	0
Level 3 Inputs [Member] | Cash [Member]
Fair value of our plan assets by level of fair value hierarchy [Abstract]
Fair value of plan assets, Gross		0
Level 3 Inputs [Member] | Common stocks [Member]
Fair value of our plan assets by level of fair value hierarchy [Abstract]
Fair value of plan assets, Gross			0
Level 3 Inputs [Member] | Mutual funds [Member]
Fair value of our plan assets by level of fair value hierarchy [Abstract]
Fair value of plan assets, Gross		0	0
Level 3 Inputs [Member] | Money-market fund [Member]
Fair value of our plan assets by level of fair value hierarchy [Abstract]
Fair value of plan assets, Gross		0	0
Level 3 Inputs [Member] | Collective trust fund [Member]
Fair value of our plan assets by level of fair value hierarchy [Abstract]
Fair value of plan assets, Gross		$ 0	$ 0

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EMPLOYEE BENEFIT PLANS (Tables)

12 Months Ended

Dec. 30, 2012

EMPLOYEE BENEFIT PLANS [Abstract]

Change in benefit obligations

							Other
	Pension Benefits						Postretirement Benefits
Years ended December 30 and December 25	2012			2011			2012			2011
Change in benefit obligations
Benefit obligation at beginning of year	$	171,028		$	151,151		$	17,274		$	17,342
Service cost		-			-			14			53
Interest cost		7,578			7,850			630			827
Actuarial loss		12,322			20,941			(2,010	)		1,009
Benefits paid		(8,924	)		(8,914	)		(1,300	)		(1,957	)
Benefit obligation at end of year	$	182,004		$	171,028		$	14,608		$	17,274

Change in plan assets

							Other
	Pension Benefits						Postretirement Benefits
Years ended December 30 and December 25	2012			2011			2012			2011
Change in plan assets
Fair value of plan assets at beginning of year	$	96,699		$	109,103		$	-		$	-
Actual gain (loss) on plan assets		11,672			(3,865	)		-			-
Company contributions		3,155			375			1,300			1,957
Benefits paid		(8,924	)		(8,914	)		(1,300	)		(1,957	)
Fair value of plan assets at end of year	$	102,602		$	96,699		$	-		$	-
Funded status	$	(79,402	)	$	(74,329	)	$	(14,608	)	$	(17,274	)

Amounts recognized in consolidated balance sheets

							Other
	Pension Benefits						Postretirement Benefits
Years ended December 30 and December 25	2012			2011			2012			2011
Acounts recognized in consolidated balance sheets
Current liabilities	$	(476	)	$	(489	)	$	(1,645	)	$	(1,850	)
Noncurrent liabilities		(78,926	)		(73,840	)		(12,963	)		(15,424	)
Total	$	(79,402	)	$	(74,329	)	$	(14,608	)	$	(17,274	)

Amounts recognized in accumulated other comprehensive loss

	Pension Benefits
			Prior			Deferred
	Actuarial		Service			Income
	Loss, Net		Credit			Taxes			Total
Amounts recognized in accumulated other comprehensive loss
As of December 25, 2011	$	86,151	$	(58	)	$	(34,268	)	$	51,825
Current year change		7,066		10			(2,784	)	$	4,292
As of December 30, 2012	$	93,217	$	(48	)	$	(37,052	)	$	56,117

	Other Postretirement Benefits
	Actuarial			Prior						Deferred
	Loss			Service			Transition			Income
	(Gain), Net			Credit			Obligation			Taxes			Total
Amounts recognized in accumulated other comprehensive loss
As of December 25, 2011	$	2,381		$	(1,002	)	$	546		$	(768	)	$	1,157
Current year change		(2,198	)		219			(546	)		990		$	(1,535	)
As of December 30, 2012	$	183		$	(783	)	$	-		$	222		$	(378	)

Components of net periodic benefit cost

	Pension Benefits
Years ended December 30, December 25 and December 26	2012			2011			2010
Components of net periodic benefit cost
Service cost	$	-		$	-		$	-
Interest cost		7,578			7,850			8,197
Expected return on plan assets		(8,454	)		(9,594	)		(10,224	)
Curtailment gain		-			-			(1,109	)
Amortization of:
Unrecognized prior service credit		(10	)		(10	)		(131	)
Unrecognized net loss		2,038			979			3,080
Net periodic benefit cost included in operating costs and expenses and selling and administrative expenses	$	1,152		$	(775	)	$	(187	)

	Other Postretirement Benefits
Years ended December 30, December 25 and December 26	2012			2011			2010
Components of net periodic benefit cost
Service cost	$	14		$	53		$	85
Interest cost		630			827			951
Amortization of:
Unrecognized prior service credit		(219	)		(219	)		(219	)
Unrecognized net transition obligation		546			549			549
Unrecognized net loss		188			-			-
Net periodic benefit cost included in selling and administrative expenses	$	1,159		$	1,210		$	1,366

Weighted-average assumptions used

Weighted-average assumptions used to determine benefit obligations:

							Other
	Pension Benefits						Postretirement Benefits
December 30 and December 25	2012			2011			2012			2011
Discount rate		3.95	%		4.55	%		2.75	%		3.85	%
Rate of compensation increases		-			-			-			-

Weighted-average assumptions used to determine net periodic benefit cost:

										Other
	Pension Benefits									Postretirement Benefits
December 30, December 25 and December 26	2012			2011			2010			2012			2011			2010
Discount rate		4.55	%		5.35	%		5.70/4.70	%		3.85	%		4.95	%		5.50	%
Expected return on plan assets		7.75			8.25			8.50/8.25			-			-			-
Rate of compensation increases		-			-			4.80			-			-			-

Effect of 1% change in assumed health care cost trend rates

The assumed health care cost trend rate used in measuring the postretirement benefit obligation for retirees for 2012 is 9.50%, grading down to 5.00% in the year 2021 and thereafter. The assumed health care cost trend rates have a significant effect on the amounts reported for other postretirement benefits. A 1% change in the assumed health care cost trend rate would have the following effects:

	1%		1%
	Increase		Decrease
Effect on total of service and interest cost components in 2013	$	83	$	(78	)
Effect on postretirement benefit obligation as of December 30, 2012	$	223	$	(215	)

Fair value of plan assets by level of the fair value hierarchy

The following tables present the fair value of our plan assets by level of the fair value hierarchy. In accordance with the FASB's guidance for fair value measurements, level 1 inputs are quoted prices in active markets for identical assets; level 2 inputs are significant other observable inputs; and level 3 inputs are significant unobservable inputs.

	Level 1		Level 2		Level 3
	Inputs		Inputs		Inputs		Total
December 30, 2012
Cash	$	715	$	-	$	-	$	715
Mutual funds		89,430		-		-		89,430
Money-market fund		7		-		-		7
Collective trust fund		-		12,450		-		12,450
		90,152		12,450		-		102,602
Unsettled trades of common stock		-		-		-		-
Fair value of plan assets	$	90,152	$	12,450	$	-	$	102,602
	Level 1		Level 2		Level 3
	Inputs		Inputs		Inputs		Total
December 25, 2011
Common stocks	$	-	$	9,503	$	-	$	9,503
Mutual funds		74,665		-		-		74,665
Money-market fund		455		-		-		455
Collective trust fund		-		12,018		-		12,018
		75,120		21,521		-		96,641
Unsettled trades of common stock		-		58		-		58
Fair value of plan assets	$	75,120	$	21,579	$	-	$	96,699

Pension plan weighted average asset allocations

Our pension plan weighted average asset allocations at December 30, 2012 and December 25, 2011 by asset category are as follows:

	Plan Assets
December 30 and December 25	2012			2011
Equity securities		65.2	%		69.1	%
Fixed-income securities		34.9			30.4
Other		(0.1	)		0.5
Total		100.0	%		100.0	%

Percent of total portfolio

We employ a total return investment approach whereby a mix of equity and fixed-income investment funds are used to maximize the long-term return of plan assets for a prudent level of risk. We establish our risk tolerance through careful consideration of plan liabilities, plan funded status and our financial condition. The investment portfolio contains a diversified blend of equity and debt investments. The equity component is diversified across U.S. and non-U.S. stocks, as well as growth, value and small and large capitalization stocks. The fixed-income component is diversified across the maturity, quality and sector spectrum. The portfolio may also hold cash equivalents. Fund managers may use derivatives only if the vehicle is deemed by the manager to be more attractive than a similar direct investment in the underlying cash market, or if the vehicle is being used to manage risk of the portfolio. Derivatives, however, may not be used in a speculative manner or to leverage the portfolio. We measure and monitor investment risk on an ongoing basis through quarterly investment portfolio reviews, annual liability measurements and periodic asset/liability allocation studies. The asset mix guidelines for the plan are as follows:

	Percent of Total Portfolio
	Minimum			Target			Maximum
Large capitalization U.S. stocks		30.0	%		35.0	%		40.0	%
Small capitalization U.S. stocks		15.0			20.0			25.0
International stock		10.0			15.0			20.0
Fixed-income securities		20.0			25.0			35.0
Cash equivalents		-			5.0			5.0

Expected benefit payments

The following benefit payments, which reflect expected future service, as appropriate, are expected to be paid with future contributions to the plan or directly from plan assets, as follows:

			Other
	Pension		Postretirement
	Benefits		Benefits
2013	$	9,194	$	1,645
2014		9,411		1,585
2015		9,644		1,538
2016		9,787		1,479
2017		9,935		1,447
2018-2022		51,948		5,667

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SIGNIFICANT ACCOUNTING POLICIES (Tables)

12 Months Ended

Dec. 30, 2012

Organization Consolidation And Presentation Of Financial Statements Disclosure And Significant Accounting Policies [Abstract]

Summary of inventories

Inventories—Inventories are stated at the lower of cost (first in, first out method) or market. A summary of inventories follows:

	2012			2011
December 30 and December 25
Paper and supplies	$	2,950		$	1,778
Work in process		84			33
Less obsolescence reserve		(90	)		(45	)
Inventories, net	$	2,944		$	1,766

Property and equipment

Property and equipment—Property and equipment are recorded at cost. Depreciation of property and equipment is provided, using the straight-line method, over the estimated useful lives, which are as follows:

	Years
Building and land improvements	10
Buildings	30
Newspaper printing presses	25
Broadcasting equipment	5-20
Other printing presses	10
Other	3-10

Depreciation expense totaled $21,074, $21,764 and $22,697 in 2012, 2011 and 2010, respectively.

Computation of basic earnings per share

The following table sets forth the computation of basic earnings per share under the two-class method:

	2012			2011		2010
Numerator for basic earnings from continuing operations for each class of common stock and non-vested restricted stock:
Earnings form continuing operations	$	33,325		$	21,845	$	30,678
Less dividends:
Class A and B		-			-		-
Minimum class C		1,146			1,854		1,854
Non-vested restricted stock		-			-		-
Total undistributed earnings from continuing operations	$	32,179		$	19,991	$	28,824
Undistributed earnings from continuing operations:
Class A and B	$	30,701		$	18,546	$	26,634
Class C		1,261			1,186		1,712
Non-vested restricted stock		217			259		478
Total undistributed earnings from continuing operations	$	32,179		$	19,991	$	28,824
Numerator for basic earnings from continuing operations per class A and B common stock:
Minimum dividends on class A and B	$	-		$	-	$	-
Class A and B undistributed earnings		30,701			18,546		26,634
Numerator for basic earnings from continuing operations per class A and B common stock	$	30,701		$	18,546	$	26,634
Numerator for basic earnings from continuing operations per class C common stock:
Minimum dividends on class C	$	1,146		$	1,854	$	1,854
Class C undistributed earnings		1,261			1,186		1,712
Numerator for basic earnings from continuing operations per class C common stock	$	2,407		$	3,040	$	3,566
Denominator for basic earnings from continuing operations for each class of common stock:
Weighted average shares outstanding -
Class A and B		50,091			51,088		50,789
Class C		3,264	(1)		3,264		3,264
Basic earnings per share from continuing operations:
Class A and B	$	0.61		$	0.36	$	0.52
Class C	$	0.74		$	0.93	$	1.09

(1)  The weighted average number of shares is calculated only for the period of time which the class C common stock was outstanding during the period, not the entire period.

	2012			2011		2010
Numerator for basic earnings from discontinued operations for each class of common stock and non-vested restricted stock:
Total undistributed earnings from discontinued operations	$	-		$	341	$	3,703
Undistributed earnings from discontinued operations:
Class A and B	$	-			316	$	3,422
Class C		-			20	$	220
Non-vested restricted stock		-			5	$	61
Total undistributed earnings from discontinued operations	$	-			341	$	3,703
Denominator for basic earnings from discontinued operations for each class of common stock:
Weighted average shares outstanding -
Class A and B		50,091			51,088		50,789
Class C		3,264	(1)		3,264		3,264
Basic earnings per share from discontinued operations:
Class A and B	$	-		$	0.01	$	0.07
Class C	$	-		$	0.01	$	0.07
Numerator for basic net earnings for each class of common stock:
Net earnings	$	33,325		$	22,186	$	34,381
Less dividends:
Class A and B		-			-		-
Minimum class C		1,146			1,854		1,854
Non-vested restricted stock		-			-		-
Total undistributed net earnings	$	32,179		$	20,332	$	32,527
Undistributed net earnings:
Class A and B	$	30,701		$	18,862	$	30,056
Class C		1,261			1,206		1,932
Non-vested restricted stock		217			264		539
Total undistributed net earnings	$	32,179		$	20,332	$	32,527
Numerator for basic net earnings per class A and B common stock:
Dividends on class A and B	$	-		$	-	$	-
Class A and B undistributed  net earnings		30,701			18,862		30,056
Numerator for basic net earnings per class A and B common stock	$	30,701		$	18,862	$	30,056

(1)  The weighted average number of shares is calculated only for the period of time which the class C common stock was outstanding during the period, not the entire period.

	2012			2011		2010
Numerator for basic net earnings per class C common stock:
Minimum dividends on class C	$	1,146		$	1,854	$	1,854
Class C undistributed net earnings		1,261			1,206		1,932
Numerator for basic net earnings per class C common stock	$	2,407		$	3,060	$	3,786
Denominator for basic net earnings for each class of common stock:
Weighted average shares outstanding -
Class A and B		50,091			51,088		50,789
Class C		3,264	(1)		3,264		3,264
Basic net earnings per share:
Class A and B	$	0.61		$	0.37	$	0.59
Class C	$	0.74		$	0.94	$	1.16

(1)  The weighted average number of shares is calculated only for the period of time which the class C common stock was outstanding during the period, not the entire period.

Computation of diluted net earnings (loss) per share

The following table sets forth the computation of diluted net earnings (loss) per share for class A and B common stock:

	2012		2011		2010
Numerator for diluted net earnings per share:
Dividends on class A and B common stock	$	-	$	-	$	-
Total undistributed earnings from continuing operations		30,701		18,546		26,634
Total undistributed earnings from discontinued operations		-		316		3,422
Net earnings	$	30,701	$	18,862	$	30,056
Denominator for diluted net earnings per share:
Weighted average shares outstanding		50,091		51,088		50,789
Diluted earnings per share:
Continuing operations	$	0.61	$	0.36	$	0.52
Discontinued operations		-		0.01		0.07
Net earnings	$	0.61	$	0.37	$	0.59

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SCHEDULE II CONSOLIDATED VALUATION AND QUALIFYING ACCOUNTS (Details) (USD $) In Thousands, unless otherwise specified	Dec. 30, 2012	Dec. 25, 2011	Dec. 30, 2012 IPC Print Services, Inc [Member]	Dec. 26, 2010 IPC Print Services, Inc [Member]	Dec. 27, 2009 IPC Print Services, Inc [Member]	Dec. 30, 2012 Northern Community Newspapers and Shoppers Publications [Member]	Dec. 30, 2012 NewsChannel 5 Network, LLC [Member]
Valuation and Qualifying Accounts Disclosure [Line Items]
Accounts receivable against the allowance for doubtful accounts	$ 2,468	$ 1,870	$ 1,105	$ 1,105	$ 1,067	$ 15	$ 361

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INCOME TAXES (Details) (USD $) In Thousands, unless otherwise specified	12 Months Ended
	Dec. 30, 2012	Dec. 25, 2011	Dec. 26, 2010
Current [Abstract]
Federal	$ 5,080	$ 1,583	$ 8,498
State	283	958	1,963
Total current	5,363	2,541	10,461
Deferred [Abstract]
Federal	13,445	10,236	8,248
State	3,398	1,635	356
Total deferred	16,843	11,871	8,604
Total provision for income taxes for continuing operations	22,206	14,412	19,065
Current [Abstract]
Federal	0	174	2,465
State	0	37	278
Total current	0	211	2,743
Deferred [Abstract]
Federal	0	10	(459)
State	0	0	36
Total deferred	0	10	(423)
Total provision (benefit) for income taxes for discontinued operations	0	221	2,320
Federal income tax rates and the effective income tax (benefit) rates [Abstract]
Statutory federal income tax rate (in hundredths)	35.00%	35.00%	35.00%
State income taxes, net of federal tax benefit (in hundredths)	5.00%	5.10%	4.80%
Revaluation of deferred taxes due to sale of printing services business (in hundredths)	0.00%	0.00%	(1.50%)
Other (in hundredths)	0.00%	(0.30%)	0.00%
Effective income tax (benefit) rate (in hundredths)	40.00%	39.80%	38.30%
Current assets [Abstract]
Receivables	737	655
Inventories	32	17
Other assets	666	658
Accrued compensation	737	946
Accrued state taxes	0	166
Accrued employee benefits	998	1,151
Total current deferred tax assets	3,170	3,593
Current liabilities [Abstract]
Accrued state taxes	(117)	0
Total current deferred tax liability	(117)	0
Total net current deferred tax assets	3,053	3,593
Non-current assets [Abstract]
Accrued employee benefits	34,446	33,394
State deferred income taxes	4,533	6,277
State net operating loss	2,122	2,410
Intangible assets	21,664	30,208
Other assets	278	176
Total non-current deferred tax assets	63,043	72,465
Non-current liabilities [Abstract]
Property and equipment	(19,729)	(15,172)
Valuation allowance	(199)	(57)
Other liabilities	(96)	0
Total non-current deferred tax assets	(20,024)	(15,229)
Total net non-current deferred tax assets	43,019	57,236
Period over which broadcast licenses and tax deductible goodwill deduct	15 years
Period over which deferred tax assets and will be utilized to offset future taxable income	20 years
Valuation allowance	4
Capital loss carryforwards	195
Number of state and local jurisdictions	15
Activity related to unrecognized tax benefits [Roll Forward]
Beginning balance	885	913	1,058
Increases related to current year tax provisions	0	0	18
Increases due to prior year tax provisions	0	14	6
Decreases related to prior year tax provisions	0	(10)	0
Decreases due to the expiration of statutes of limitations	(7)	(32)	(56)
Decreases due to settlements	(116)	0	(113)
Ending balance	762	885	913
Unrecognized tax benefits that would impact effective tax rate	762
Unrecognized tax benefits and related interest to be recognized within the next twelve months due to settlements with taxing authorities	102
Accrued interest expense and penalties	229	282
Interest expense related to unrecognized tax benefits	29	51
Liability for interest and penalties decreased due to a reduction for the expiration of statutes of limitations	$ 82
Federal Jurisdiction [Member]
Non-current liabilities [Abstract]
Statute of limitations for assessing additional taxes	3 years
Open tax year for examinations	2009 through 2011
State and Local Jurisdiction [Member]
Non-current liabilities [Abstract]
Open tax year for examinations	2008 through 2011
State and Local Jurisdiction [Member] | Minimum [Member]
Non-current liabilities [Abstract]
Statute of limitations for assessing additional taxes	3 years
State and Local Jurisdiction [Member] | Maximum [Member]
Non-current liabilities [Abstract]
Statute of limitations for assessing additional taxes	4 years
WISCONSIN [Member]
Non-current liabilities [Abstract]
Open tax year for examinations	2004 through 2007
Internal Revenue Service (IRS) [Member]
Non-current liabilities [Abstract]
Open tax year for examinations	2010 and 2011
ILLINOIS [Member]
Non-current liabilities [Abstract]
Open tax year for examinations	2006 and 2007

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INCOME TAXES (Tables)

12 Months Ended

Dec. 30, 2012

INCOME TAXES [Abstract]

Components of the provision (benefit) for income taxes

The components of the provision (benefit) for income taxes consist of the following:

Years ended December 30, December 25 and December 26	2012		2011		2010
Continuing operations
Current:
Federal	$	5,080	$	1,583	$	8,498
State		283		958		1,963
Total current		5,363		2,541		10,461
Deferred:
Federal		13,445		10,236		8,248
State		3,398		1,635		356
Total deferred		16,843		11,871		8,604
Total provision for income taxes for continuing operations	$	22,206	$	14,412	$	19,065
Discontinued operations
Current:
Federal	$	-	$	174	$	2,465
State		-		37		278
Total current		-		211		2,743
Deferred:
Federal		-		10		(459	)
State		-		-		36
Total deferred		-		10		(423	)
Total provision (benefit) for income taxes for discontinued operations	$	-	$	221	$	2,320

Federal income tax rates and the effective income tax (benefit) rates

The significant differences between the statutory federal income tax rates and the effective income tax rates are as follows:

Years ended December 30, December 25 and December 26	2012			2011			2010
Statutory federal income tax rate		35.0	%		35.0	%		35.0	%
State income taxes, net of federal tax benefit		5.0			5.1			4.8
Revaluation of deferred taxes due to sale of printing services business		-			-			(1.5	)
Other		-			(0.3	)		0
Effective income tax (benefit) rate		40.0	%		39.8	%		38.3	%

Schedule of deferred tax assets and liabilities

Temporary differences that give rise to the deferred tax assets and liabilities at December 30, 2012 and December 25, 2011 are as follows:

	2012			2011
Current assets
Receivables	$	737		$	655
Inventories		32			17
Other assets		666			658
Accrued compensation		737			946
Accrued state taxes		-			166
Accrued employee benefits		998			1,151
Total current deferred tax assets		3,170			3,593
Current liabitites
Accrued state taxes		(117	)		-
Total current deferred tax liability		(117	)		-
Total net current deferred tax assets	$	3,053		$	3,593
Non-current assets
Accrued employee benefits	$	34,446		$	33,394
State deferred income taxes		4,533			6,277
State net operating loss		2,122			2,410
Intangible assets		21,664			30,208
Other assets		278			176
Total non-current deferred tax assets		63,043			72,465
Non-current liabilities
Property and equipment		(19,729	)		(15,172	)
Valuation allowances		(199	)		(57	)
Other liabilities		(96	)		-
Total non-current deferred tax assets		(20,024	)		(15,229	)
Total net non-current deferred tax assets	$	43,019		$	57,236

Activity related to unrecognized tax benefits

The following table summarizes the activity related to our unrecognized tax benefits during 2012, 2011 and 2010:

	2012			2011			2010
Beginning balance	$	885		$	913		$	1,058
Increases related to current year tax provisions		-			-			18
Increases due to prior year tax provisions		-			14			6
Decreases related to prior year tax provisions		-			(10	)		-
Decreases due to the expiration of statutes of limitations		(7	)		(32	)		(56	)
Decreases due to settlements		(116	)		-			(113	)
Ending Balance	$	762		$	885		$	913

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COMMITMENTS AND CONTINGENCIES (Tables)

12 Months Ended

Dec. 30, 2012

COMMITMENTS AND CONTINGENCIES [Abstract]

Future minimum rental payments due under noncancellable operating lease agreements

As of December 30, 2012, our future minimum rental payments due under noncancellable operating lease agreements consist of the following:

	Due In
	Fiscal Year
2013	$	2,995
2014		2,026
2015		1,421
2016		807
2017		706
Thereafter		2,549
	$	10,504

Future minimum rental payments due under capital lease agreements

Our publishing businesses lease print equipment and delivery trucks accounted for as capital leases. As of December 30, 2012, our future minimum rental payments due under capital lease agreements consist of the following:

	Due In
	Fiscal Year
2013	$	54
2014		45
2015		47
2016		20
2017		-
	$	166

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CONSOLIDATED STATEMENTS OF EQUITY (USD $) In Thousands, unless otherwise specified	Preferred Stock [Member]	Common Stock [Member] Class C [Member]	Common Stock [Member] Class B [Member]	Common Stock [Member] Class A [Member]	Additional Paid-in-Capital [Member]	Additional Paid-in-Capital [Member] Class B [Member]	Accumulated Other Comprehensive Loss [Member]	Retained Earnings (Deficit) [Member]	Noncontrolling Interests [Member]	Treasury Stock, at cost [Member]	Total	Class C [Member]
Balance at Dec. 27, 2009	$ 0	$ 33	$ 174	$ 418	$ 258,413		$ (34,487)	$ 55,239	$ 0	$ (108,715)	$ 171,075
Comprehensive income (loss):
Net earnings								34,381			34,381	3,786
Comprehensive income							2,192				2,192
Class C minimum dividends								(1,854)			(1,854)	(1,854)
Issuance of shares:
Conversion of class B to class A			(14)	14							0
Stock grants			5			576					581
Employee stock purchase plan			1		301						302
Shares purchased and retired											0
Shares withheld from employees for tax withholding			(1)		(549)						(550)
Stock-based compensation					1,211			1			1,212
Consolidation of variable interest entity									1,164		1,164
Reversal of reserve for unrecognized tax benefits					113						113
Income tax benefits from vesting of restricted stock					311						311
Balance at Dec. 26, 2010	0	33	165	432	260,376		(32,295)	87,767	1,164	(108,715)	208,927
Comprehensive income (loss):
Net earnings								22,186			22,186	3,060
Comprehensive income							(20,687)				(20,687)
Class C minimum dividends								(1,854)			(1,854)	(1,854)
Issuance of shares:
Conversion of class B to class A			(17)	17							0
Stock grants			5			498					503
Employee stock purchase plan			1		327						328
Shares purchased and retired				(11)	(4,129)						(4,140)
Treasury shares cancelled			(87)		(446)			(108,182)		108,715	0
Shares withheld from employees for tax withholding			(1)		(590)						(591)
Stock-based compensation					1,114						1,114
Income tax benefits from vesting of restricted stock					402						402
Balance at Dec. 25, 2011	0	33	66	438	257,552		(52,982)	(83)	1,164	0	206,188
Comprehensive income (loss):
Net earnings								33,325			33,325	2,407
Comprehensive income							(2,757)				(2,757)
Class C minimum dividends								(1,146)			(1,146)	(1,146)
Issuance of shares:
Conversion of class B to class A			(7)	7							0
Stock grants			5			384					389
Employee stock purchase plan					271						271
Class C shares repurchase		(33)			(117)			(25,794)			(25,944)	6,246
Shares purchased and retired				(7)	(3,558)						(3,565)
Shares withheld from employees for tax withholding			(1)		(654)						(655)
Stock-based compensation					1,639						1,639
Income tax benefits from vesting of restricted stock					293						293
Purchase of noncontrolling interest					(1,373)				(1,164)		(2,537)
Balance at Dec. 30, 2012	$ 0	$ 0	$ 63	$ 438	$ 254,437		$ (55,739)	$ 6,302	$ 0	$ 0	$ 205,501

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SHAREHOLDERS' EQUITY (Tables)

12 Months Ended

Dec. 30, 2012

SHAREHOLDERS' EQUITY [Abstract]

Changes in the number of shares of our common stock

The changes in the number of shares of our common stock (excluding Treasury stock) during 2012, 2011 and 2010 are as follows (in thousands):

	Common Stock
	Class C			Class B			Class A
Balance at December 27, 2009		3,264			9,642			41,783
Conversion of class B shares to class A shares		-			(1,413	)		1,413
Shares issued under equity incentive and employee stock purchase plans		-			366			-
Balance at December 26, 2010		3,264			8,595			43,196
Conversion of class B shares to class A shares		-			(1,683	)		1,683
Shares repurchased		-			-			(1,100	)
Shares issued under equity incentive and employee stock purchase plans		-			302			-
Balance at December 25, 2011		3,264			7,214			43,779
Conversion of class B shares to class A shares		-			(682	)		682
Shares repurchased		(3,264	)					(710	)
Shares issued under equity incentive and employee stock purchase plans		-			374			-
Balance at December 30, 2012		-			6,906			43,751

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SIGNIFICANT ACCOUNTING POLICIES (Details) (USD $) In Thousands, except Share data, unless otherwise specified	3 Months Ended								12 Months Ended					12 Months Ended															3 Months Ended	12 Months Ended																											12 Months Ended			12 Months Ended									12 Months Ended
	Dec. 30, 2012	Sep. 23, 2012	Jun. 24, 2012	Mar. 25, 2012	Dec. 25, 2011	Sep. 25, 2011	Jun. 26, 2011	Mar. 27, 2011	Dec. 30, 2012	Dec. 25, 2011	Dec. 26, 2010	Dec. 27, 2009	Sep. 30, 2009	Dec. 30, 2012 Continuing Operations [Member]	Dec. 25, 2011 Continuing Operations [Member]	Dec. 26, 2010 Continuing Operations [Member]	Dec. 30, 2012 Discontinued Operations [Member]	Dec. 25, 2011 Discontinued Operations [Member]	Dec. 26, 2010 Discontinued Operations [Member]	Dec. 30, 2012 Class A and B [Member]	Dec. 25, 2011 Class A and B [Member]	Dec. 26, 2010 Class A and B [Member]	Dec. 30, 2012 Class A and B [Member] Continuing Operations [Member]	Dec. 25, 2011 Class A and B [Member] Continuing Operations [Member]	Dec. 26, 2010 Class A and B [Member] Continuing Operations [Member]	Dec. 30, 2012 Class A and B [Member] Discontinued Operations [Member]	Dec. 25, 2011 Class A and B [Member] Discontinued Operations [Member]	Dec. 26, 2010 Class A and B [Member] Discontinued Operations [Member]	Sep. 23, 2012 Class C [Member]	Dec. 30, 2012 Class C [Member]		Dec. 25, 2011 Class C [Member]	Dec. 26, 2010 Class C [Member]	Dec. 30, 2012 Class C [Member] Continuing Operations [Member]		Dec. 25, 2011 Class C [Member] Continuing Operations [Member]	Dec. 26, 2010 Class C [Member] Continuing Operations [Member]	Dec. 30, 2012 Class C [Member] Discontinued Operations [Member]		Dec. 25, 2011 Class C [Member] Discontinued Operations [Member]	Dec. 26, 2010 Class C [Member] Discontinued Operations [Member]	Dec. 30, 2012 Non-Vested Restricted Stock [Member]	Dec. 25, 2011 Non-Vested Restricted Stock [Member]	Dec. 26, 2010 Non-Vested Restricted Stock [Member]	Dec. 30, 2012 Non-Vested Restricted Stock [Member] Continuing Operations [Member]	Dec. 25, 2011 Non-Vested Restricted Stock [Member] Continuing Operations [Member]	Dec. 26, 2010 Non-Vested Restricted Stock [Member] Continuing Operations [Member]	Dec. 30, 2012 Non-Vested Restricted Stock [Member] Discontinued Operations [Member]	Dec. 25, 2011 Non-Vested Restricted Stock [Member] Discontinued Operations [Member]	Dec. 26, 2010 Non-Vested Restricted Stock [Member] Discontinued Operations [Member]	Dec. 25, 2011 Secured Note [Member]	Dec. 26, 2010 Secured Note [Member]	Dec. 30, 2012 Promissory Note [Member]	Dec. 26, 2010 Promissory Note [Member]	Dec. 25, 2011 Promissory Note [Member]	Feb. 28, 2010 Promissory Note [Member]	Dec. 26, 2010 Working Capital Note [Member]	Dec. 25, 2011 Working Capital Note [Member]	Feb. 28, 2010 Working Capital Note [Member]	Dec. 30, 2012 Broadcasting [Member]	Dec. 26, 2010 Broadcasting [Member]	Dec. 30, 2012 Publishing [Member]	Dec. 30, 2012 Building and Land Improvements [Member]	Dec. 30, 2012 Building [Member]	Dec. 30, 2012 Newspaper Printing Presses [Member]	Dec. 30, 2012 Other Printing Presses [Member]	Dec. 30, 2012 Capital Leases [Member]	Dec. 25, 2011 Capital Leases [Member]	Dec. 30, 2012 Minimum [Member]	Dec. 30, 2012 Minimum [Member] Broadcasting Equipment [Member]	Dec. 30, 2012 Minimum [Member] Others [Member]	Dec. 30, 2012 Maximum [Member]	Dec. 30, 2012 Maximum [Member] Broadcasting Equipment [Member]	Dec. 30, 2012 Maximum [Member] Others [Member]
Accounting periods [Line Items]
Number of weeks in a fiscal reporting period (in weeks)																																																																					52			53
Number of quarterly reporting periods (in quarter)									4
Number of weeks in each quarterly reporting period (in weeks)									13
Period in which the fourth quarter reporting period is 14 weeks									6 years
Number of weeks in fourth quarter of every 6 years (in weeks)									14
Number of weeks in 2012 fiscal year fourth quarter (in weeks)									14
Revenue recognition [Abstract]
Period of newspaper advertising contracts, maximum									1 year
Period over which if deferred revenue is be earned is included in other long term liabilities, maximum									1 year
Advertising expense [Abstract]
Advertising expense									$ 7,533	$ 7,000	$ 6,692
Cash equivalents [Abstract]
Maximum period of maturity for cash equivalents									3 months
Receivables [Abstract]
Accounts receivable against the allowance for doubtful accounts	2,468				1,870				2,468	1,870
Inventories [Abstract]
Paper and supplies	2,950				1,778				2,950	1,778
Work in process	84				33				84	33
Less obsolescence reserve	(90)				(45)				(90)	(45)
Inventories, net	2,944				1,766				2,944	1,766
Television programming [Abstract]
Minimum contract period for rights to television programming									1 year
Maximum contract period for rights to television programming									5 years
Barter advertising revenue and expense									5,698	4,990	4,552
Property, Plant and Equipment [Line Items]
Property and equipment, useful life																																																															10 years	30 years	25 years	10 years				5 years	3 years		20 years	10 years
Depreciation expenses									21,074	21,764	22,697
Capital leases [Abstract]
Capital leased assets	1,834				1,884				1,834	1,884
Accumulated depreciation	247,782				239,725				247,782	239,725																																																									1,683	1,525
Current portion of long-term liabilities																																																																			54	258
Other long-term liabilities	3,491				8,595				3,491	8,595																																																									113	166
Impairment of long-lived assets [Abstract]
Impairment of long-lived assets									493	0	1,802																																																	368	1,802	125
Finite-Lived Intangible Assets [Line Items]
Amortization period																																																																					5 years			25 years
Accounts, Notes, Loans and Financing Receivable [Line Items]
Secured note													450
Number of radio stations sold												2
Principal payments received																																																			50	50
Note receivable					400					400																																											772		433	700		51	147
Period over which note is repayable																																																					3 years	4 years			3 years
Fair value of notes																																																					738			587			129
Fair value of notes discounted (in hundredths)									3.08%	3.05%																																											6.25%	6.785%			9.08%
Interest rate on notes receivables (in hundredths)																																																					3.00%
Share Repurchases [Abstract]
Stock repurchased during period (in shares)									3,264,000																				3,264	3,264,000
Numerator for basic earnings for each class of common stock and non-vested restricted stock [Abstract]
Net earnings	15,097	7,698	7,611	2,919	8,224	4,446	6,141	3,375	33,325	22,186	34,381			33,325	21,845	30,678				30,701	18,862	30,056								2,407		3,060	3,786	2,407		3,040	3,566
Minimum dividend									1,146	1,854	1,854									0	0	0	0	0	0					1,146		1,854	1,854	1,146		1,854	1,854					0	0	0	0	0	0
Undistributed net earnings									$ 32,179	$ 20,332	$ 32,527			$ 32,179	$ 19,991	$ 28,824	$ 0	$ 341	$ 3,703	$ 30,701	$ 18,862	$ 30,056	$ 30,701	$ 18,546	$ 26,634	$ 0	$ 316	$ 3,422		$ 1,261		$ 1,206	$ 1,932	$ 1,261		$ 1,186	$ 1,712	$ 0		$ 20	$ 220	$ 217	$ 264	$ 539	$ 217	$ 259	$ 478	$ 0	$ 5	$ 61
Denominator for basic earnings for each class of common stock:
Weighted average shares outstanding (in shares)									3,264,000											50,091,000	51,088,000	50,789,000	50,091,000	51,088,000	50,789,000	50,091,000	51,088,000	50,789,000		3,264,000	[1]	3,264,000	3,264,000	3,264,000	[1]	3,264,000	3,264,000	3,264,000	[1]	3,264,000	3,264,000
Basic earnings per share:
Basic earnings per share (in dollars per share)	$ 0.30	$ 0.14	$ 0.13	$ 0.05	$ 0.14	$ 0.07	$ 0.10	$ 0.05	$ 0.61	$ 0.37	$ 0.59									$ 0.61	$ 0.37	$ 0.59	$ 0.61	$ 0.36	$ 0.52	$ 0	$ 0.01	$ 0.07		$ 0.74		$ 0.94	$ 1.16	$ 0.74		$ 0.93	$ 1.09	$ 0		$ 0.01	$ 0.07

[1] The weighted average number of shares is calculated only for the period of time which the class C common stock was outstanding during the period, not the entire period.

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RELATED PARTY TRANSACTIONS (Details) (USD $) In Thousands, except Share data, unless otherwise specified	12 Months Ended						3 Months Ended	12 Months Ended
	Dec. 30, 2012	Dec. 25, 2011	Dec. 26, 2010	Dec. 30, 2012 Unsecured Subordinated Promissory Notes [Member]	Dec. 30, 2012 Unsecured Subordinated Promissory Notes [Member] Judith Abert Meissner Marital Trust [Member]	Dec. 30, 2012 Unsecured Subordinated Promissory Notes [Member] Mr. Meissner [Member]	Sep. 23, 2012 Class C [Member]	Dec. 30, 2012 Class C [Member]	Dec. 30, 2012 Class B [Member] Judith Abert Meissner Marital Trust [Member] Minimum [Member]
Related Party Transaction [Line Items]
Stock repurchased during period (in shares)	3,264,000						3,264	3,264,000
Payments for repurchase of common stock	$ 6,246	$ 0	$ 0				$ 6,246	$ 6,246
Number of promissory notes issued	4			15	1	3
Aggregate principal amount of promissory notes				25,599	7,617	752
Interest rate of notes issued (in hundredths)				7.25%
Beneficial ownership percentage (in hundredths)									5.00%
Frequency of periodic payment	six equal annual installments on September 30 of each of 2013, 2014, 2015, 2016, 2017 and 2018
Related party transaction amounts	$ 2,042

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CONSOLIDATED BALANCE SHEETS (USD $) In Thousands, unless otherwise specified	Dec. 30, 2012	Dec. 25, 2011
Current assets:
Cash and cash equivalents	$ 2,430	$ 2,418
Investments of variable interest entity	0	500
Receivables, net	65,265	56,695
Inventories, net	2,944	1,766
Prepaid expenses and other current assets	3,980	3,877
Syndicated programs	2,446	2,822
Deferred income taxes	3,053	3,593
TOTAL CURRENT ASSETS	80,118	71,671
Property and equipment:
Land and land improvements	37,574	35,164
Buildings and building improvements	132,400	128,102
Equipment	245,686	242,420
Construction in progress	3,476	2,239
Gross property and equipment	419,136	407,925
Less accumulated depreciation	247,782	239,725
Net property and equipment	171,354	168,200
Syndicated programs	5,200	4,457
Goodwill	125,818	8,670
Broadcast licenses	129,566	81,547
Other intangible assets, net	62,734	21,400
Deferred income taxes	43,019	57,236
Other assets	7,994	4,544
TOTAL ASSETS	625,803	417,725
Current liabilities:
Accounts payable	26,861	20,516
Accrued compensation	10,715	11,888
Accrued employee benefits	5,155	6,217
Deferred revenue	16,277	14,662
Syndicated programs	2,686	3,436
Accrued income taxes	3,756	2,740
Other current liabilities	6,821	6,093
Current portion of unsecured subordinated notes payable	2,656	0
Current portion of long-term liabilities	126	382
TOTAL CURRENT LIABILITIES	75,053	65,934
Accrued employee benefits	92,907	90,176
Syndicated programs	5,477	5,527
Long-term notes payable to banks	230,095	41,305
Unsecured subordinated notes payable	13,279	0
Other long-term liabilities	3,491	8,595
Equity:
Preferred stock, $0.01 par - authorized 10,000,000 shares; no shares outstanding at December 30, 2012 and December 25, 2011	0	0
Additional paid-in capital	254,437	257,552
Accumulated other comprehensive loss	(55,739)	(52,982)
Retained earnings (deficit)	6,302	(83)
Total Journal Communications, Inc. shareholders' equity	205,501	205,024
Noncontrolling interest	0	1,164
TOTAL EQUITY	205,501	206,188
TOTAL LIABILITIES AND EQUITY	625,803	417,725
Class C [Member]
Equity:
Common stock value (in dollars)	0	33
Class B [Member]
Equity:
Common stock value (in dollars)	63	66
Class A [Member]
Equity:
Common stock value (in dollars)	$ 438	$ 438

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COMMITMENTS AND CONTINGENCIES (Details) (USD $) In Thousands, unless otherwise specified	12 Months Ended
	Dec. 30, 2012	Dec. 25, 2011	Dec. 26, 2010
Future minimum rental payments due under noncancellable operating lease agreements [Abstract]
2013	$ 2,995
2014	2,026
2015	1,421
2016	807
2017	706
Thereafter	2,549
Total	10,504
Future minimum rental payments due under capital lease agreements [Abstract]
2013	54
2014	45
2015	47
2016	20
2017	0
Total	166
Rent expense	4,545	4,207	5,038
Rental income from subleases	218	67	38
Purchase Commitment, Excluding Long-term Commitment [Line Items]
Standby letters of credit	2,320
Lease expiration date	Dec. 31, 2016
Potential obligation pursuant to the guarantee	725
Building improvements [Member]
Purchase Commitment, Excluding Long-term Commitment [Line Items]
Purchase commitment	0
Advertising Time [Member]
Purchase Commitment, Excluding Long-term Commitment [Line Items]
Purchase commitment	$ 9,103
Number of years for which purchase commitment is given	4 years

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CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME (USD $) In Thousands, unless otherwise specified	12 Months Ended
	Dec. 30, 2012	Dec. 25, 2011	Dec. 26, 2010
CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME [Abstract]
Net earnings	$ 33,325	$ 22,186	$ 34,381
Other comprehensive income, net of tax:
Change in pension and postretirement, net of tax benefit (expense) of $1,792, $13,421 and ($1,511), respectively	(2,757)	(20,687)	2,192
Comprehensive income	$ 30,568	$ 1,499	$ 36,573

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ACQUISITIONS AND DIVESTITURES (Tables)

12 Months Ended

Dec. 30, 2012

Business Acquisition [Line Items]

Schedule of pro forma information

The following unaudited pro forma information presents the combined results of operations of Journal and NewsChannel 5 as if the acquisition of NewsChannel 5 had occurred on December 27, 2010:

	2012		2011
Pro Forma Results of Operations
Revenue	$	439,732	$	399,313
Earnings per share from continuing operations, diluted	$	0.71	$	0.47

KHTT-FM and KBEZ-FM [Member]

Business Acquisition [Line Items]

Recognized Identified Assets Acquired and Liabilities Assumed

The estimated fair values of identifiable assets acquired and liabilities assumed for KHTT-FM and KBEZ-FM at the acquisition date are as follows:

	KHTT-FM and KBEZ-FM
	Tulsa, OK
Property and equipment	$	181
Goodwill		1,947
Broadcast licenses		9,600
Total purchase price	$	11,728

NewsChannel 5 Network, LLC [Member]

Business Acquisition [Line Items]

Recognized Identified Assets Acquired and Liabilities Assumed

The estimated provisional fair values of identifiable assets acquired and liabilities assumed for NewsChannel 5 at the acquisition date are as follows:

	NewsChannel 5
Tangible assets	$	13,383
Long-term assets, other		48
Working capital		6,845
Network affiliation agreements		43,500
FCC licenses		40,100
Goodwill		116,124
Total purchase price	$	220,000

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WORKFORCE REDUCTION

12 Months Ended

Dec. 30, 2012

WORKFORCE REDUCTION [Abstract]

WORKFORCE REDUCTION

12    WORKFORCE REDUCTION

During 2012, we recorded a pre-tax charge of $1,655 for workforce separation benefits across our publishing business. These charges are recorded in operating costs and expenses and selling and administrative expenses in the consolidated statement of operations. In 2012, the number of full-time and part-time employees decreased by approximately 15.1% compared to 2011.

Activity associated with workforce reductions during the years ended December 30, 2012 and December 25, 2011 was as follows:

	Balance as of		Charge for		Payments for			Balance as of
	December 25, 2011		Separation Benefits		Separation Benefits			December 30, 2012
	(dollars in millions)
Publishing	$	1,780	$	1,655	$	(2,626	)	$	809
Total	$	1,780	$	1,655	$	(2,626	)	$	809

	Balance as of		Charge for		Payments for			Balance as of
	December 26, 2010		Separation Benefits		Separation Benefits			December 25, 2011
	(dollars in millions)
Publishing	$	1,437	$	1,654	$	(1,311	)	$	1,780
Total	$	1,437	$	1,654	$	(1,311	)	$	1,780

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DISCONTINUED OPERATIONS (Tables)

12 Months Ended

Dec. 30, 2012

NorthStar Print Group, Inc. [Member]

Income Statement, Balance Sheet and Additional Disclosures by Disposal Groups, Including Discontinued Operations [Line Items]

Revenue and earnings before income taxes as reported in earnings (loss) from discontinued operations, net of applicable income taxes in the consolidated statement of operations

The following table summarizes NorthStar's revenue and earnings before income taxes as reported in earnings (loss) from discontinued operations, net of applicable income taxes in the consolidated statements of operations for all periods presented:

	2012		2011		2010
Years ended December 30, December 25 and December 26
Revenue	$	-	$	-	$	-
Earnings before income taxes	$	-	$	562	$	-

PrimeNet Marketing Services [Member]

Income Statement, Balance Sheet and Additional Disclosures by Disposal Groups, Including Discontinued Operations [Line Items]

Revenue and earnings before income taxes as reported in earnings (loss) from discontinued operations, net of applicable income taxes in the consolidated statement of operations

The following table summarizes PrimeNet's revenue and loss before income taxes as reported in earnings (loss) from discontinued operations, net of applicable income taxes in the consolidated statements of operations for all periods presented:

	2012		2011		2010
Years ended December 30, December 25 and December 26
Revenue	$	-	$	-	$	2,144
Earnings before income taxes	$	-	$	-	$	(1,060	)

IPC Print Services, Inc. [Member]

Income Statement, Balance Sheet and Additional Disclosures by Disposal Groups, Including Discontinued Operations [Line Items]

Revenue and earnings before income taxes as reported in earnings (loss) from discontinued operations, net of applicable income taxes in the consolidated statement of operations

The following table summarizes IPC's revenue and earnings before income taxes as reported in earnings (loss) from discontinued operations, net of applicable income taxes in the consolidated statements of operations for all periods presented:

	2012		2011		2010
Years ended December 30, December 25 and December 26
Revenue	$	-	$	-	$	40,685
Earnings before income taxes	$	-	$	-	$	1,672

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SEGMENT REPORTING

12 Months Ended

Dec. 30, 2012

SEGMENT REPORTING [Abstract]

SEGMENT REPORTING

14    SEGMENT REPORTING

Our business segments are based on the organizational structure used by management for making operating and investment decisions and for assessing performance. Our reportable business segments are: (i) broadcasting; (ii); publishing and (iii) corporate. Our broadcasting segment consists of 34 radio stations and 15 television stations in 12 states. Our publishing segment consists of the Milwaukee Journal Sentinel, which serves as the only major daily newspaper for the Milwaukee metropolitan area, and several community newspapers and shoppers in Wisconsin. Our corporate segment consists of unallocated corporate expenses and revenue eliminations.

With the reporting of PrimeNet as a discontinued operation during 2010, the previously reported "Other" segment was changed to "Corporate" and now reflects unallocated costs primarily related to corporate executive management and corporate governance. The prior year was revised to conform to this change. With the reporting of IPC as a discontinued operation, we no longer have a printing services segment.

	2012			2011			2010
Revenue
Broadcasting	$	235,627		$	186,080		$	194,365
Publishing		164,947			170,976			182,799
Corporate eliminations		(532	)		(263	)		(405	)
	$	400,042		$	356,793		$	376,759
Operating earnings (loss)
Broadcasting	$	56,228		$	31,001		$	43,559
Publishing		11,622			15,901			18,222
Corporate		(7,858	)		(7,120	)		(8,757	)
	$	59,992		$	39,782		$	53,024
Broadcast license impairment
Broadcasting	$	1,681		$	879		$	-
Publishing		-			-			-
Corporate		-			-			-
	$	1,681		$	879		$	-
Depreciation and amortization
Broadcasting	$	13,013		$	12,297		$	12,747
Publishing		9,170			10,412			11,382
Corporate		667			622			500
	$	22,850		$	23,331		$	24,629
Capital expenditures
Broadcasting	$	10,750		$	8,531		$	7,770
Publishing		1,240			987			1,068
Corporate		746			1,143			553
	$	12,736		$	10,661		$	9,391

	2012			2011
Identifiable total assets
Broadcasting	$	523,179		$	262,216
Publishing		104,162			113,236
Corporate & discontinued operations		(1,538	)		42,273
	$	625,803		$	417,725

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CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME (Parenthetical) (USD $) In Thousands, unless otherwise specified	12 Months Ended
	Dec. 30, 2012	Dec. 25, 2011	Dec. 26, 2010
Other comprehensive income, net of tax:
Change in pension and postretirement, tax	$ 1,792	$ 13,421	$ (1,511)

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CONSOLIDATED BALANCE SHEETS (Parenthetical) (USD $)	Dec. 30, 2012	Dec. 25, 2011
Equity:
Preferred stock, par (in dollars per share)	0.01	0.01
Preferred stock, authorized (in shares)	10,000,000	10,000,000
Preferred stock, shares outstanding (in shares)	0	0
Common stock, par (in dollars per share)	0.01	0.01
Class C [Member]
Equity:
Common stock authorized (in shares)	10,000,000	10,000,000
Common stock issued (in shares)	0	3,264,000
Common stock outstanding (in shares)	0	3,264,000
Class B [Member]
Equity:
Common stock authorized (in shares)	120,000,000	120,000,000
Common stock issued (in shares)	6,905,955	7,214,374
Common stock outstanding (in shares)	6,905,955	7,214,374
Class A [Member]
Equity:
Common stock authorized (in shares)	170,000,000	170,000,000
Common stock issued (in shares)	43,750,920	43,778,922
Common stock outstanding (in shares)	43,750,920	43,778,922

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STOCK-BASED COMPENSATION

12 Months Ended

Dec. 30, 2012

STOCK-BASED COMPENSATION [Abstract]

STOCK-BASED COMPENSATION

7      STOCK-BASED COMPENSATION

2007 Journal Communications, Inc. Omnibus Incentive Plan

The purpose of the 2007 Journal Communications, Inc. Omnibus Incentive Plan (2007 Plan) is to promote our success by linking personal interests of our employees, officers and non-employee directors to those of our shareholders, and by providing participants with an incentive for outstanding performance. The 2007 Plan is also intended to enhance our ability to attract, motivate and retain the services of employees, officers and directors upon whose judgment, interest and special effort the successful conduct of our operation is largely dependent.

Subject to adjustment as provided in the 2007 Plan, the aggregate number of shares of class A common stock or class B common stock reserved and available for issuance pursuant to awards granted under the 2007 Plan is 4,800 shares which may be awarded in the form of nonstatutory or incentive stock options, stock appreciation rights, restricted stock, restricted or deferred stock units, performance awards, dividend equivalents or other stock-based awards. The 2007 Plan also provides for the issuance of cash-based awards. The 2007 Plan replaced the 2003 Equity Incentive Plan (2003 Plan) and, as of May 3, 2007, all equity grants are made from the 2007 Plan. We will not grant any additional awards under the 2003 Plan. As of December 30, 2012, there are 2,360 shares available for issuance under the 2007 Plan.

During the years ended December 30, 2012, December 25, 2011 and December 26, 2010, we recognized $2,056, $1,649 and $1,821, respectively, in stock-based compensation expense. During the year ended December 26, 2010, stock based compensation expense included $136 in the net gain from discontinued operations. Total income tax benefit recognized related to stock-based compensation for the years ended December 30, 2012, December 25, 2011 and December 26, 2010 was $822, $656 and $698, respectively. We recognize stock-based compensation expense on a straight-line basis over the service period based upon the fair value of the award on the grant date. As of December 30, 2012, total unrecognized compensation cost related to stock-based awards was $2,038, net of estimated forfeitures, which we expect to recognize over a weighted average period of 1.2 years. Stock-based compensation expense is reported in selling and administrative expenses and the net gain on discontinued operations in our consolidated statements of operations.

Stock grants

The compensation committee of our board of directors has granted class B common stock to employees and non-employee directors under our 2003 Plan and our 2007 Plan. Each stock grant may have been accompanied by restrictions, or may have been made without any restrictions, as the compensation committee of our board of directors determined. Such restrictions could have included requirements that the participant remain in our continuous employment for a specified period of time, or that we or the participant meet designated performance goals. We value non-vested restricted stock grants at the closing market prices of our class A common stock on the grant date.

A summary of stock grant activity during 2012 is:

				Weighted
				Average Grant
	Shares			Date Fair Value
Non-vested at December 25, 2011		657		$	3.89
Granted		382			5.12
Vested		(492	)		3.28
Forfeited		(9	)		4.91
Non-vested at December 30, 2012		538		$	5.30

Our non-vested restricted stock grants vest from one to four years from the grant date. We expect our non-vested restricted stock grants to fully vest over the weighted average remaining service period of 1.2 years. The total grant date fair value of shares vesting during 2012 was $1,613. There was an aggregate of 368 unrestricted and non-vested restricted stock grants issued to our non-employee directors (101 shares) and employees (267 shares) in 2011 at a weighted average fair value of $5.63 per share, of which 185 shares are vested as of December 30, 2012 with a total grant date fair value of $1,003. There were 427 unrestricted and non-vested restricted stock grants issued to our directors (106 shares) and employees (321 shares) during 2010 at a weighted average fair value of $4.36 per share, of which 336 shares are vested as of December 30, 2012 with a total grant date fair value of $1,128.

Performance Units

In the first quarter of 2012, the compensation committee of our board of directors approved the grant of performance-based restricted stock units (performance units) under our 2007 Plan, which represent the right to earn shares of class B common stock based on continued employment and the achievement of specified targets for adjusted cumulative EBITDA over the 2012 to 2014 fiscal year performance period. We value performance unit awards at the closing market price of our class A common stock on the grant date. In the first quarter of 2012, we granted 77 performance units at a weighted average fair value of $5.59. The actual number of performance units that vest will be determined at the end of the three year performance period. As of December 30, 2012, 77 performance units remain unvested.

Stock appreciation rights

A stock appreciation right, or SAR, represents the right to receive an amount equal to the excess of the fair value of a share of our class B common stock on the exercise date over the base value of the SAR, which shall not be less than the fair value of a share of our class B common stock on the grant date. Each SAR is settled only in shares of our class B common stock. The term during which any SAR may be exercised is 10 years from the grant date, or such shorter period as determined by the compensation committee of our board of directors.

Our SARs vest over a three year graded vesting schedule and it is our policy to recognize compensation cost for awards with graded vesting on a straight-line basis over the vesting period for the entire award. We ensure the compensation cost recognized at any date is at least equal to the portion of the grant-date value of the award that is vested at that date. The fixed price SARs have a fixed base value equal to the closing price of our class A common stock on the date of grant. The escalating price SARs have an escalating base value that starts with the closing price of our class A common stock on the date of grant and increases by six percent per year for each year that the SARs remain outstanding, starting on the first anniversary of the grant date.

A summary of SAR activity during 2012 is:

					Weighted
					Average
			Weighted		Contractual Term
			Average		Remaining
	SARS		Exercise Price		(years)
December 25, 2011
Outstanding and exercisable		1,083	$	10.71		5.6
December 30, 2012
Outstanding and exercisable		1,083	$	10.71		4.6

All SARs have vested. The aggregate intrinsic value of the SARs outstanding and exercisable at the end of 2012 is zero because the fair market value of our class B common stock on December 30, 2012 was lower than the weighted average exercise price of the SARs.

Employee stock purchase plan

The 2003 Employee Stock Purchase Plan permits eligible employees to purchase our class B common stock at 90% of the fair market value measured as of the closing market price of our class A common stock on the day of purchase. We recognize compensation expense equal to the 10% discount of the fair market value. Subject to certain adjustments, 3,000 shares of our class B common stock are authorized for sale under this plan. There were 57 class B common shares sold to employees under this plan in 2012 at a weighted average fair value of $4.25. As of December 30, 2012, there are 2,207 shares available for sale under the plan.

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Document and Entity Information (USD $)	12 Months Ended
	Dec. 30, 2012	Jun. 22, 2012	Mar. 01, 2013 Class A Common Stock [Member]	Mar. 01, 2013 Class B Common Stock [Member]	Mar. 01, 2013 Class C Common Stock [Member]
Entity Information [Line Items]
Entity Registrant Name	JOURNAL COMMUNICATIONS INC
Entity Central Index Key	0001232241
Current Fiscal Year End Date	--12-30
Entity Well-known Seasoned Issuer	No
Entity Voluntary Filers	No
Entity Current Reporting Status	Yes
Entity Filer Category	Accelerated Filer
Entity Public Float		$ 216,765,751
Entity Common Stock, Shares Outstanding			43,899,338	6,730,298	0
Document Fiscal Year Focus	2012
Document Fiscal Period Focus	FY
Document Type	10-K
Amendment Flag	false
Document Period End Date	Dec. 30, 2012

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VARIABLE INTEREST ENTITY

12 Months Ended

Dec. 30, 2012

VARIABLE INTEREST ENTITY [Abstract]

VARIABLE INTEREST ENTITY

8      VARIABLE INTEREST ENTITY

In 2009, the FASB issued amended guidance for consolidating VIEs. The guidance amends the evaluation criteria to identify the primary beneficiary of a VIE and requires ongoing reassessment of whether an enterprise is the primary beneficiary of the VIE. The guidance also replaces the quantitative-based risks and rewards calculation for determining which reporting entity, if any, has a controlling financial interest in a VIE with an approach focused on identifying which reporting entity has the power to direct the activities of a VIE that most significantly impact the entity's economic performance and (1) the obligation to absorb losses of the entity or (2) the right to receive benefits from the entity. The amended guidance also requires additional disclosures about a reporting entity's involvement in VIEs. We adopted this guidance in the first quarter of 2010.

We had an affiliation agreement with ACE TV, Inc. for the rights under a local marketing agreement for WACY-TV in Appleton, Wisconsin and to acquire certain assets of ACE TV, Inc. including the broadcast license of WACY-TV for a purchase price of $2,038, pending FCC rule changes and approval. In May 2012, we filed an application with the FCC to convert the local marketing agreement into an ownership interest through a failed station waiver, which was pending approval. Under the affiliation agreement, ACE TV, Inc. provided the programming for WACY-TV and we sold advertising time, provided all other television operating activities and owned certain assets used by WACY-TV. Based on our power to direct certain activities and our right to ultimately acquire certain additional assets, including the broadcast license, we determined that ACE TV, Inc. was a VIE and that we were the primary beneficiary of the variable interests of WACY-TV. As a result, we consolidated the net assets of ACE TV, Inc., aggregating $1,164 which consisted primarily of a broadcast license and investments. The investments of ACE TV, Inc. could be used only to settle obligations of ACE TV, Inc. Creditors of ACE TV, Inc. had no recourse to our general credit. We did not provide financial or other support that we were not contractually required to provide. On October 22, 2012, we closed on the acquisition of the remaining assets used in the operation of WACY-TV from ACE TV, Inc.

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CONSOLIDATED STATEMENTS OF OPERATIONS (USD $) In Thousands, except Per Share data, unless otherwise specified	12 Months Ended
	Dec. 30, 2012	Dec. 25, 2011	Dec. 26, 2010
Revenue:
Total revenue	$ 400,042	$ 356,793	$ 376,759
Operating costs and expenses:
Total operating costs and expenses	208,289	201,665	207,687
Selling and administrative expenses	130,080	114,467	116,048
Broadcast license impairment	1,681	879	0
Total operating costs and expenses and selling and administrative expenses	340,050	317,011	323,735
Operating earnings	59,992	39,782	53,024
Other income and (expense):
Interest income	22	117	81
Interest expense	(4,483)	(3,642)	(3,362)
Total other income and (expense)	(4,461)	(3,525)	(3,281)
Earnings from continuing operations before income taxes	55,531	36,257	49,743
Provision for income taxes	22,206	14,412	19,065
Earnings from continuing operations	33,325	21,845	30,678
Earnings from discontinued operations, net of applicable income tax expense of $0, $221 and $2,320, respectively	0	341	3,703
Net earnings	33,325	22,186	34,381
Basic - Class A and B common stock:
Continuing operations (in dollars per share)	$ 0.61	$ 0.36	$ 0.52
Discontinued operations (in dollars per share)	$ 0	$ 0.01	$ 0.07
Net earnings (in dollars per share)	$ 0.61	$ 0.37	$ 0.59
Diluted - Class A and B common stock:
Continuing operations (in dollars per share)	$ 0.61	$ 0.36	$ 0.52
Discontinued operations (in dollars per share)	$ 0	$ 0.01	$ 0.07
Net earnings (in dollars per share)	$ 0.61	$ 0.37	$ 0.59
Basic and diluted - Class C common stock:
Continuing operations (in dollars per share)	$ 0.74	$ 0.93	$ 1.09
Discontinued operations (in dollars per share)	$ 0	$ 0.01	$ 0.07
Net earnings (in dollars per share)	$ 0.74	$ 0.94	$ 1.16
Broadcasting [Member]
Revenue:
Total revenue	235,627	186,080	194,365
Operating costs and expenses:
Total operating costs and expenses	101,532	92,371	91,018
Broadcast license impairment	1,681	879	0
Operating earnings	56,228	31,001	43,559
Publishing [Member]
Revenue:
Total revenue	164,947	170,976	182,799
Operating costs and expenses:
Total operating costs and expenses	107,289	109,557	117,074
Broadcast license impairment	0	0	0
Operating earnings	11,622	15,901	18,222
Corporate Eliminations [Member]
Revenue:
Total revenue	(532)	(263)	(405)
Operating costs and expenses:
Total operating costs and expenses	$ (532)	$ (263)	$ (405)

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NOTES PAYABLE

12 Months Ended

Dec. 30, 2012

NOTES PAYABLE [Abstract]

NOTES PAYABLE

2  NOTES PAYABLE

Long-term Notes Payable to Banks

On December 5, 2012, we entered into an amended and restated credit agreement for a secured term loan facility and a secured revolving credit facility with aggregate commitments of $350,000, including the term loan commitment of $150,000 and the revolving credit facility commitment of $200,000, both of which mature on December 5, 2017. The secured term loan facility amortizes at 10% per annum payable quarterly with the balance due at maturity. As of December 30, 2012, the outstanding principal amount of revolving loans drawn under the credit agreement was $80,095, and the outstanding principal amount of term loans drawn under the credit agreement was $150,000. The proceeds of the senior secured credit facilities were used for the acquisition of NewsChannel 5 Network, LLC and general corporate purposes. Amounts under the secured revolving credit facility may be borrowed, repaid and reborrowed by us from time to time until the maturity date of the revolving loan facility. Voluntary prepayments and commitment reductions are permitted at any time without fee upon proper notice and subject to a minimum dollar requirement. Voluntary prepayments of the secured term loan facility represent a permanent reduction in credit available. At our option, the commitments under the credit agreement may be increased from time to time to an aggregate amount not to exceed $450,000. The increase option is subject to the satisfaction of certain conditions, including, without limitation, the identification of lenders (which may include existing lenders or new lenders) willing to provide the additional commitments.

Our borrowings under the credit agreement incur interest at either (a) LIBOR plus a margin that ranges from 150.0 basis points to 250.0 basis points, depending on our net debt ratio, or (b) (i) the base rate, which equals the highest of the prime rate set by U.S. Bank National Association, the Federal Funds Rate plus 50.0 basis points or one-month LIBOR plus 100.0 basis points, plus (ii) a margin that ranges from 50.0 basis points to 150.0 basis points, depending on our net debt ratio. The initial pricing spread above LIBOR was 225.0 basis points.

Our obligations under the credit agreement are currently guaranteed by certain of our domestic subsidiaries. Subject to certain exceptions, the credit agreement is secured by liens on certain of our assets and contains affirmative, negative and financial covenants which are customary for financings of this type, including, among other things, limits on the creation of liens, limits on the incurrence of indebtedness, restrictions on dispositions and restrictions on the payment of dividends. The senior secured credit facilities contains the following financial covenants which remain constant over the term of the agreement:

· A consolidated funded debt ratio of not greater than 3.75-to-1, as of the end of each fiscal quarter, as determined for the four fiscal quarters then ended. This ratio compares, as of the date of determination, our consolidated funded debt on such date to consolidated EBITDA, defined in the credit agreement as earnings before interest, taxes, depreciation, amortization, restructuring charges, gains/losses on asset disposals, non-cash charges and certain other adjustments.

· A minimum interest coverage ratio of not less than 3-to-1, as of the end of each fiscal quarter, as determined for the four fiscal quarters then ended. This ratio compares, for any period, our consolidated EBITDA, defined in the credit agreement as earnings before interest, taxes, depreciation, amortization, restructuring charges, gains/losses on asset disposals, non-cash charges and certain other adjustments.

As of December 30, 2012 and December 25, 2011, we had borrowings of $230,095 and $41,305, respectively, under our credit facilities at a currently effective blended interest rate of 2.53% and 2.65%, respectively. Fees in connection with the credit facilities of $4,727 which are included in other assets, are being amortized over the term of the senior secured credit facilities using the straight-line method.

We estimate the fair value of our senior secured credit facilities at December 30, 2012 to be $224,752, based on discounted cash flows using an interest rate of 3.08%. We estimated the fair value of our secured credit facility at December 25, 2011 to be $40,988, based on discounted cash flows using an interest rate of 3.05%. Interest rates utilized are estimated based on observed market rates of interest for debt with similar maturities and seniority. These fair value measurements fall within Level 2 of the fair value hierarchy.

Scheduled minimum principal repayments of the secured term loan facility are $11,250 in 2013, $15,000 in 2014, $15,000 in 2015, $15,000 in 2016 and $93,750 thereafter.

Unsecured Subordinated Notes Payable

On August 13, 2012, we repurchased all 3,264 outstanding shares of our class C common stock, including all rights associated with such shares of class C common stock, in exchange for $6,246 in cash and the issuance of 15 unsecured subordinated promissory notes with an aggregate principal amount of $25,599 and bearing interest at a rate of 7.25% per annum. The cash payment equaled the amount of the minimum unpaid and undeclared dividend on the class C common stock through August 12, 2012.

The aggregate principal amount of the subordinated notes was determined by multiplying the volume weighted average price of our class A common stock on the New York Stock Exchange over the five consecutive trading days ending on (and including) August 10, 2012 of $5.75 by the number of fully diluted shares of class C common stock (each class C share was convertible into 1.363970 shares of class A common stock pursuant to our amended and restated articles of incorporation for a total of 4,452 shares on a class A-equivalent basis).

One subordinated note of $1,340 was repaid in full on September 21, 2012. Six of the remaining subordinated notes, with an aggregate principal amount of $8,324, were paid on December 21, 2012. The remaining eight subordinated notes, with an aggregate principal amount of approximately $15,935, are payable in six equal annual installments on September 30 of each of 2013, 2014, 2015, 2016, 2017 and 2018, with no prepayment right. Interest on the notes is payable quarterly.

We estimate the fair value of the subordinated notes to be $16,188 based on discounted cash flows using an interest rate of 7.26%, which falls within Level 2 of the fair value hierarchy. Interest rates utilized are estimated based on observed market rates of interest for debt with similar maturities and seniority. As of December 30, 2012, $15,935 of the subordinated notes remains outstanding.

Scheduled minimum principal repayments of the unsecured subordinated notes payable are $2,656 in 2013, $2,656 in 2014, $2,656 in 2015, $2,656 in 2016 and $5,311 thereafter.

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SIGNIFICANT ACCOUNTING POLICIES

12 Months Ended

Dec. 30, 2012

Organization Consolidation And Presentation Of Financial Statements Disclosure And Significant Accounting Policies [Abstract]

SIGNIFICANT ACCOUNTING POLICIES

1 SIGNIFICANT ACCOUNTING POLICIES

Basis of presentation and consolidation—We report on a 52-53 week fiscal year ending on the last Sunday of December in each year. In addition, we have four quarterly reporting periods, each consisting of thirteen weeks and ending on a Sunday, provided that once every six years the fourth quarterly reporting period will be fourteen weeks. The fourth quarterly reporting period in our 2012 fiscal year consists of fourteen weeks.

The consolidated financial statements include the accounts of Journal Communications, Inc. and its wholly owned subsidiaries. In 2012, we purchased the remaining noncontrolling interest associated with a variable interest entity (VIE) for which we were the primary beneficiary in accordance with U.S. generally accepted accounting principles and pursuant to the rules and regulations of the Securities and Exchange Commission. All significant intercompany balances and transactions have been eliminated.

The gain on the sale of NorthStar Print Group Inc.'s (NorthStar) real estate holdings, the operations of PrimeNet Marketing Services (PrimeNet), our former direct marketing services business, and IPC Print Services, Inc. (IPC), our former printing services business, have been reflected as discontinued operations in our consolidated statements of operations.

Use of estimates—The preparation of financial statements in conformity with accounting principles generally accepted in the United States requires management to make estimates and assumptions that affect the amounts reported in the financial statements and accompanying notes. Actual results could differ from those estimates.

Revenue recognition—Our principal sources of revenue are the sale of airtime on television and radio stations, the sale of advertising in newspapers and the sale of newspapers to individual subscribers and distributors. In addition, we sell advertising on our newspaper, television and radio websites and derive revenue from other online activities. Advertising revenue is recognized in the publishing and broadcasting businesses when advertisements are published, aired or displayed, or when related advertising services are rendered. Newspaper advertising contracts, which generally have a term of one year or less, may provide rebates or discounts based upon the volume of advertising purchased during the terms of the contracts. Estimated rebates and discounts are recorded as a reduction of revenue in the period the advertisement is displayed. This requires us to make certain estimates regarding future advertising volumes. Estimates are based on various factors including historical experience and advertising sales trends. These estimates are revised as necessary based on actual volumes realized. Circulation revenue is recognized on a pro-rata basis over the term of the newspaper subscription or when the newspaper is delivered to the customer. Amounts we receive from customers in advance of revenue recognition are deferred as liabilities. Deferred revenue to be earned more than one year from the balance sheet date is included in other long-term liabilities in the consolidated balance sheets.

Printing revenue from external customers as well as third-party distribution revenue is recognized when the product is delivered in accordance with the customers' instructions.

We also derive revenues from retransmission of our broadcast programs by Multichannel Video Programming Distributors (MVPDs). Retransmission revenues from MVPDs are recognized based on average monthly subscriber counts and contractual rates over the terms of the agreements.

Multiple-deliverable revenue arrangements— Our broadcast business sells airtime on television and radio stations and online advertising bundled arrangements, where multiple products are involved. Significant deliverables within these arrangements include advertising on television and radio stations and advertising placed on various company websites, each of which are considered separate units of accounting. Our daily newspaper sells print and online advertising in bundled arrangements, where multiple products are involved. Significant deliverables within these arrangements include advertising in the printed daily newspaper and advertising placed on various company websites, each of which are considered separate units of accounting. There were no significant changes in units of accounting, the allocation process or the pattern and timing of revenue recognition upon adoption of the amended guidance related to revenue recognition for arrangements with multiple deliverables.

Shipping and handling costs—Shipping and handling costs, including postage, billed to customers are included in revenue and the related costs are included in operating costs and expenses.

Advertising expense—We expense our advertising costs as incurred. Advertising expense totaled $7,533, $7,000 and $6,692 in 2012, 2011 and 2010, respectively.

Interest expense—All interest incurred during the years ended December 30, 2012, December 25, 2011 and December 26, 2010 was expensed.

Income taxes—Deferred taxes are provided for the net tax effects of temporary differences between the carrying amounts of assets and liabilities for financial reporting purposes and the amounts for income tax purposes. Valuation allowances are established when management determines that it is more likely than not that some portion or all of a deferred tax asset will not be realized.

We recognize an uncertain tax position when it is more likely than not to be sustained upon examination by taxing authorities and we measure the tax benefit as the largest amount of benefit, determined on a cumulative probability basis, which is more likely than not to be realized upon ultimate settlement.

Fair values—The carrying amount of cash and cash equivalents, receivables, accounts payable, accrued severance and barter programming assets and liabilities approximates fair value as of December 30, 2012 and December 25, 2011.

Cash equivalents—Cash equivalents are highly liquid investments with maturities of three months or less when purchased. Cash equivalents are stated at cost, which approximates market value.

Receivables, net—Our non-interest bearing accounts receivable arise primarily from the sale of advertising, commercial printing, commercial distribution and the retransmission of our television programs by MVPDs. We record accounts receivable at original invoice amounts. The accounts receivable balance is reduced by an estimated allowance for doubtful accounts. We evaluate the collectability of our accounts receivable based on a combination of factors. We specifically review historical write-off activity by market, large customer concentrations, customer creditworthiness and changes in our customer payment patterns and terms when evaluating the adequacy of the allowance for doubtful accounts. In circumstances where we are aware of a specific customer's inability to meet its financial obligations, we record a specific reserve to reduce the amounts recorded to what we believe will be collected. For all other customers, we recognize allowances for bad debts based on historical experience of bad debts as a percent of accounts receivable for each business unit. We write off uncollectible accounts against the allowance for doubtful accounts after collection efforts have been exhausted. The allowance for doubtful accounts at December 30, 2012 and December 25, 2011 was $2,468 and $1,870, respectively.

Concentration of credit risk—Generally, credit is extended based upon an evaluation of the customer's financial position, and advance payment is not required. Credit losses are provided for in the financial statements and have been within management's expectations. Given the current economic environment, credit losses may increase in the future.

Inventories—Inventories are stated at the lower of cost (first in, first out method) or market. A summary of inventories follows:

	2012			2011
December 30 and December 25
Paper and supplies	$	2,950		$	1,778
Work in process		84			33
Less obsolescence reserve		(90	)		(45	)
Inventories, net	$	2,944		$	1,766

Television programming—We have agreements with distributors for the rights to television programming over contract periods, which generally run for one to five years. Each contract is recorded as an asset and a liability at an amount equal to its gross contractual commitment when the license period begins and the program is available for its first showing. The portion of program contracts that become payable within one year is reflected as a current liability in the accompanying consolidated balance sheets. The rights to program materials are carried at the lower of unamortized cost or estimated net realizable value or in the case of programming obtained by an acquisition, at estimated fair value. The cost for the rights of first-run and sports programming are recorded as the episodes and games are broadcast. We do not record an asset and liability for such rights when the license period begins because the programming is not available for broadcast. Certain of our agreements require us to provide barter advertising time to our distributors. Barter advertising revenue and expense was $5,698, $4,990 and $4,552 in 2012, 2011 and 2010, respectively.

Property and equipment—Property and equipment are recorded at cost. Depreciation of property and equipment is provided, using the straight-line method, over the estimated useful lives, which are as follows:

	Years
Building and land improvements	10
Buildings	30
Newspaper printing presses	25
Broadcasting equipment	5-20
Other printing presses	10
Other	3-10

Depreciation expense totaled $21,074, $21,764 and $22,697 in 2012, 2011 and 2010, respectively.

Capital leases—We charge amortization expense of assets recorded under capital leases to depreciation expense in our consolidated statements of operations and accumulated depreciation in our consolidated balance sheets. At December 30, 2012 we recorded $1,834 for capital leases in equipment, $1,683 in accumulated depreciation, $54 in current portion of long-term liabilities and $113 in other long-term liabilities in our consolidated balance sheet. At December 25, 2011 we recorded $1,884 for capital leases in equipment, $1,525 in accumulated depreciation, $258 in current portion of long-term liabilities and $166 in other long-term liabilities in our consolidated balance sheet.

Intangible assets—Indefinite-lived intangible assets, which consist of broadcast licenses and goodwill, are reviewed for impairment at least annually or more frequently if impairment indicators are present. We continue to amortize definite-lived intangible assets on a straight-line basis over periods of five to 25 years. The costs incurred to renew or extend the term of our broadcast licenses and certain customer relationships are expensed as incurred. See Note 9, "Goodwill, Broadcast Licenses and Other Intangible Assets," for additional disclosures on our intangible assets.

Notes receivable — We received a $450 secured note resulting from the sale of two radio stations in Boise, Idaho in September 2009. Interest-only payments were due monthly and the principal balance of the note was due on September 25, 2014. Principal payments totaling $50 were received in 2011 and 2010. At December 25, 2011, the note receivable was $400 and reported in other assets in the condensed consolidated balance sheets. In the third quarter of 2012, the remaining balance was paid.

In consideration for the sale of the Clearwater, Florida-based operations of PrimeNet in February 2010, we received a $700 promissory note repayable over four years and a $147 working capital note repayable over three years. At the time of the sale, we recorded receivables of $587 and $129, respectively, representing the fair value of the notes discounted at 6.785% and 9.08%, respectively. At December 25, 2011, the notes receivables balances were $433 and $51, respectively, and reported in receivables, net in the consolidated balance sheets. In 2012, both notes were paid in full.

In partial consideration for the sale of certain publishing assets of Journal Community Publishing Groups, Inc. in December 2012, we received a $772 promissory note bearing interest at 3% and repayable over three years. At the time of the sale, we recorded a $738 receivable representing the estimated fair value of the note discounted at 6.25%. These fair value measurements fall within Level 2 of the fair value hierarchy.

Interest income and the unamortized discount on our notes receivable are recorded using the effective interest method.

Impairment of long-lived assets—Property and equipment and other definite-lived intangible assets are reviewed for impairment whenever events or changes in circumstances indicate that the carrying amount may not be recoverable. If an asset is considered impaired, a charge is recognized for the difference between the fair value and carrying value of the asset or group of assets. Such analyses necessarily involve significant judgment. In 2012, we recorded property impairment charges of $368 and $125 at our broadcasting segment and publishing segment, respectively, representing the excess of indicated fair value over the carrying value of the assets held for sale. Fair value was determined pursuant to a broker's opinion of the value based upon similar assets in an inactive market. This fair value measurement is considered a level 2 measurement under the fair value hierarchy. We recorded a property impairment loss of $1,802 at our broadcasting segment in 2010 representing the excess of indicated fair value over the carrying value of assets held for sale. Fair value was determined pursuant to a broker's opinion of value based upon similar assets in an inactive market. This fair value measurement is considered a level 2 measurement under the fair value hierarchy. The charges are reported in selling and administrative expenses in the consolidated statement of operations.

Share Repurchases—Shares repurchased under our July 2011 share repurchase program remain authorized but unissued. The cost of the class A shares repurchased under the program was greater than par value and we recorded a charge to par value and additional paid in capital. On August 13, 2012, we repurchased all 3,264 outstanding shares of our class C common stock, including all rights associated with such shares of class C common stock.

Earnings per share

Basic

For all periods during which our class C common stock was issued and outstanding (see Note 2 "Notes Payable" regarding the Company's repurchase of all 3,264 shares of the Company's class C common stock issued and outstanding), we apply the two-class method for calculating and presenting our basic earnings per share. As noted in the FASB's guidance for earnings per share, the two-class method is an earnings allocation formula that determines earnings per share for each class of common stock according to dividends declared (or accumulated) and participation rights in undistributed earnings. Under that method:

(a) Income (loss) from continuing operations ("net earnings (loss)") is reduced by the amount of dividends declared in the current period for each class of stock and by the contractual amount of dividends that must be paid or accrued during the current period.

(b) The remaining earnings, which may include earnings from discontinued operations ("undistributed earnings"), are allocated to each class of common stock to the extent that each class of stock may share in earnings if all of the earnings for the period were distributed.

(c) The remaining losses ("undistributed losses") are allocated to the class A and B common stock. Undistributed losses are not allocated to the class C common stock and non-vested restricted stock because the class C common stock and the non-vested restricted stock are not contractually obligated to share in the losses. Losses from discontinued operations are allocated to class A and B common stock and may be allocated to class C common stock and non-vested restricted stock if there is undistributed earnings after deducting earnings distributed to class C common stock from income from continuing operations.

(d) The total earnings (loss) allocated to each class of common stock are then divided by the number of weighted average shares outstanding of the class of common stock to which the earnings (loss) are allocated to determine the earnings (loss) per share for that class of common stock.

(e) Basic earnings (loss) per share data are presented for class A and B common stock in the aggregate and for class C common stock. The basic earnings (loss) per share for class A and B common stock are the same; hence, these classes are reported together.

In applying the two-class method, we have determined that undistributed earnings should be allocated equally on a per share basis among each class of common stock due to the lack of any contractual participation rights of any class to those undistributed earnings. Undistributed losses are allocated to only the class A and B common stock for the reason stated above.

The following table sets forth the computation of basic earnings per share under the two-class method:

	2012			2011		2010
Numerator for basic earnings from continuing operations for each class of common stock and non-vested restricted stock:
Earnings form continuing operations	$	33,325		$	21,845	$	30,678
Less dividends:
Class A and B		-			-		-
Minimum class C		1,146			1,854		1,854
Non-vested restricted stock		-			-		-
Total undistributed earnings from continuing operations	$	32,179		$	19,991	$	28,824
Undistributed earnings from continuing operations:
Class A and B	$	30,701		$	18,546	$	26,634
Class C		1,261			1,186		1,712
Non-vested restricted stock		217			259		478
Total undistributed earnings from continuing operations	$	32,179		$	19,991	$	28,824
Numerator for basic earnings from continuing operations per class A and B common stock:
Minimum dividends on class A and B	$	-		$	-	$	-
Class A and B undistributed earnings		30,701			18,546		26,634
Numerator for basic earnings from continuing operations per class A and B common stock	$	30,701		$	18,546	$	26,634
Numerator for basic earnings from continuing operations per class C common stock:
Minimum dividends on class C	$	1,146		$	1,854	$	1,854
Class C undistributed earnings		1,261			1,186		1,712
Numerator for basic earnings from continuing operations per class C common stock	$	2,407		$	3,040	$	3,566
Denominator for basic earnings from continuing operations for each class of common stock:
Weighted average shares outstanding -
Class A and B		50,091			51,088		50,789
Class C		3,264	(1)		3,264		3,264
Basic earnings per share from continuing operations:
Class A and B	$	0.61		$	0.36	$	0.52
Class C	$	0.74		$	0.93	$	1.09

(1) The weighted average number of shares is calculated only for the period of time which the class C common stock was outstandingduring the period, not the entire period.

	2012			2011		2010
Numerator for basic earnings from discontinued operations for each class of common stock and non-vested restricted stock:
Total undistributed earnings from discontinued operations	$	-		$	341	$	3,703
Undistributed earnings from discontinued operations:
Class A and B	$	-			316	$	3,422
Class C		-			20	$	220
Non-vested restricted stock		-			5	$	61
Total undistributed earnings from discontinued operations	$	-			341	$	3,703
Denominator for basic earnings from discontinued operations for each class of common stock:
Weighted average shares outstanding -
Class A and B		50,091			51,088		50,789
Class C		3,264	(1)		3,264		3,264
Basic earnings per share from discontinued operations:
Class A and B	$	-		$	0.01	$	0.07
Class C	$	-		$	0.01	$	0.07
Numerator for basic net earnings for each class of common stock:
Net earnings	$	33,325		$	22,186	$	34,381
Less dividends:
Class A and B		-			-		-
Minimum class C		1,146			1,854		1,854
Non-vested restricted stock		-			-		-
Total undistributed net earnings	$	32,179		$	20,332	$	32,527
Undistributed net earnings:
Class A and B	$	30,701		$	18,862	$	30,056
Class C		1,261			1,206		1,932
Non-vested restricted stock		217			264		539
Total undistributed net earnings	$	32,179		$	20,332	$	32,527
Numerator for basic net earnings per class A and B common stock:
Dividends on class A and B	$	-		$	-	$	-
Class A and B undistributed net earnings		30,701			18,862		30,056
Numerator for basic net earnings per class A and B common stock	$	30,701		$	18,862	$	30,056

(1) The weighted average number of shares is calculated only for the period of time which the class C common stock was outstandingduring the period, not the entire period.

	2012			2011		2010
Numerator for basic net earnings per class C common stock:
Minimum dividends on class C	$	1,146		$	1,854	$	1,854
Class C undistributed net earnings		1,261			1,206		1,932
Numerator for basic net earnings per class C common stock	$	2,407		$	3,060	$	3,786
Denominator for basic net earnings for each class of common stock:
Weighted average shares outstanding -
Class A and B		50,091			51,088		50,789
Class C		3,264	(1)		3,264		3,264
Basic net earnings per share:
Class A and B	$	0.61		$	0.37	$	0.59
Class C	$	0.74		$	0.94	$	1.16

(1) The weighted average number of shares is calculated only for the period of time which the class C common stock was outstanding during the period, not the entire period.

Diluted

Diluted earnings per share is computed based upon the assumption that common shares are issued upon exercise of our stock appreciation rights when the exercise price is less than the average market price of our common shares and common shares will be outstanding upon expiration of the vesting periods for our non-vested restricted stock and performance-based restricted stock units. For the year ended December 30, 2012, 615 non-vested restricted class B common shares and performance-based restricted stock units are not included in the computation of diluted earnings per share because they are anti-dilutive. For the year ended December 25, 2011, 657 non-vested restricted class B common shares are not included in the computation of diluted earnings per share because they are anti-dilutive. The class C shares are not converted into class A and B shares because they are anti-dilutive for all periods presented, and therefore are not included in the diluted weighted average shares outstanding.

The following table sets forth the computation of diluted net earnings (loss) per share for class A and B common stock:

	2012		2011		2010
Numerator for diluted net earnings per share:
Dividends on class A and B common stock	$	-	$	-	$	-
Total undistributed earnings from continuing operations		30,701		18,546		26,634
Total undistributed earnings from discontinued operations		-		316		3,422
Net earnings	$	30,701	$	18,862	$	30,056
Denominator for diluted net earnings per share:
Weighted average shares outstanding		50,091		51,088		50,789
Diluted earnings per share:
Continuing operations	$	0.61	$	0.36	$	0.52
Discontinued operations		-		0.01		0.07
Net earnings	$	0.61	$	0.37	$	0.59

Diluted earnings per share for the class C common stock is the same as basic earnings per share for the class C common stock because there are no class C common stock equivalents.

Prior to the repurchase of the class C common stock, each of the 3,264 class C shares outstanding was convertible at any time at the option of the holder into either (i) 1.363970 class A shares (or a total of 4,452 class A shares) or (ii) 0.248243 class A shares (or a total of 810 class A shares) and 1.115727 class B shares (or a total of 3,642 class B shares).

New accounting standards

In February 2013, the FASB issued guidance related to items reclassified from accumulated other comprehensive income. The new guidance requires either in a single note or parenthetically on the face of the financial statements: (i) the effect of significant amounts reclassified from each component of accumulated other comprehensive income based on its source and (ii) the income statement line items affected by the reclassification. This guidance is effective for fiscal years beginning January 1, 2013 with early adoption permitted. We do not expect the adoption of this guidance to have a material impact on our consolidated financial statements.

In July 2012, the Financial Accounting Standards Board (FASB) issued amended guidance for impairment of indefinite-lived intangible assets. The guidance allows for an option to first assess qualitative factors to determine whether the existence of events or circumstances leads to a determination that it is more likely than not that the fair value of the indefinite-lived intangible asset exceeds its carrying amount. If the qualitative factors lead us to conclude it is more likely than not that the fair value exceeds the carrying value of the indefinite-lived intangible asset, then the fair value does not need to be calculated. This update is effective for annual and interim impairment tests performed for the fiscal years beginning after September 15, 2012, with early adoption permitted. We adopted this guidance in 2012.

In September 2011, the FASB issued amended guidance for goodwill impairment. The guidance simplifies how entities test goodwill for impairment. The new guidance allows an entity to first assess qualitative factors to determine whether it is necessary to perform the two-step quantitative goodwill impairment test. Under these amendments, an entity will be required to perform the two-step impairment test only if it concludes that the fair value of a reporting unit is more likely than not, less than its carrying value. This guidance is effective for fiscal years, and interim periods within those years, beginning after December 15, 2011, with early adoption permitted. We adopted this guidance in the first quarter of 2012.

In June 2011, the FASB issued amended guidance for comprehensive income. The guidance requires an entity to present the total of comprehensive income, the components of net income and the components of other comprehensive income either in a single continuous statement of comprehensive income or in two separate but consecutive statements. The new guidance eliminates the option to present the components of other comprehensive income as part of the statement of shareholders' equity. Subsequently, in December 2011, the FASB issued its final standard to defer the new requirement to present components of reclassifications of other comprehensive income on the face of the income statement. The other requirements contained in the new standard on comprehensive income must still be adopted by the FASB. This guidance is effective for fiscal years, and interim periods within those years, beginning after December 15, 2011, with early adoption permitted. We adopted this guidance in the first quarter of 2012 and opted to present the total of comprehensive income in two separate but consecutive statements.

In May 2011, the FASB issued amended guidance for fair value measurement and disclosure requirements between U.S. generally accepted accounting principles and International Financial Reporting Standards (IFRS). The new guidance includes amendments to clarify the definition of fair value and ensure that the fair value measurement and disclosure requirements are similar between U.S. generally accepted accounting principles and IFRS. The guidance also changes certain fair value measurement principles and enhances the disclosure requirements particularly for level 3 fair value measurements. This guidance is effective for fiscal years, and interim periods within those years, beginning after December 15, 2011. We adopted this guidance in the first quarter of 2012.

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RELATED PARTY TRANSACTIONS

12 Months Ended

Dec. 30, 2012

RELATED PARTY TRANSACTIONS [Abstract]

RELATED PARTY TRANSACTIONS

13    RELATED PARTY TRANSACTIONS

On August 13, 2012, we repurchased all 3,264 outstanding shares of our class C common stock, all of which were held by Matex Inc., members of the family of our former chairman Harry J. Grant, trusts for the benefit of members of the family, and Proteus Fund, Inc., a non-profit organization. Pursuant to the terms of the agreement, we paid $6,246 in cash and issued 15 unsecured subordinated promissory notes with an aggregate principal amount of $25,599. The notes bear interest at a rate of 7.25% per annum and interest is payable quarterly. One of the unsecured subordinated promissory notes, with a principal amount of $7,617, was issued to the Judith Abert Meissner Marital Trust, a beneficial owner of more than 5% of the issued and outstanding shares of our class B common stock. David G. Meissner, a member of our Board of Directors, is a beneficiary and trustee of this trust. An additional three of the unsecured subordinated promissory notes, with an aggregate principal amount of $752, were issued to trusts for the benefit of Mr. Meissner's children in which Mr. Meissner serves as trustee. All four of these notes are payable in six equal annual installments on September 30 of each of 2013, 2014, 2015, 2016, 2017 and 2018. Of the $6,246 paid in cash for the repurchase, $2,042 went to the Judith Abert Meissner Marital Trust and the trusts for the benefit of Mr. Meissner's children in which Mr. Meissner serves as trustee.

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GOODWILL, BROADCAST LICENSES AND OTHER INTANGIBLE ASSETS

12 Months Ended

Dec. 30, 2012

GOODWILL, BROADCAST LICENSES AND OTHER INTANGIBLE ASSETS [Abstract]

GOODWILL, BROADCAST LICENSES AND OTHER INTANGIBLE ASSETS

9      GOODWILL, BROADCAST LICENSES AND OTHER INTANGIBLE ASSETS

Definite-Lived Intangibles

Our definite-lived intangible assets consist primarily of network affiliation agreements, customer lists, non-compete agreements and trade names. We amortize the network affiliation agreements over a period of 25 years based on our good relationships with the networks, our long history of renewing these agreements and because 25 years is deemed to be the length of time before a material modification of the underlying contract would occur. We amortize the customer lists over a period of five to 15 years, the non-compete agreements and franchise agreement fees over the terms of the contracts and the trade names over a period of 25 years. Management determined there were no significant adverse changes in the value of these assets as of December 30, 2012.

Amortization expense was $1,776, $1,567 and $1,932 for 2012, 2011 and 2010, respectively. Estimated amortization expense for our next five fiscal years is $3,102 for 2013, $3,008 for 2014, $2,999 for 2015, 2016 and 2017.

The gross carrying amount, accumulated amortization and net carrying amount of the major classes of definite-lived intangible assets as of December 30, 2012 and December 25, 2011 is as follows:

	Gross					Net
	Carrying		Accumulated			Carrying
	Amount		Amortization			Amount
December 30, 2012
Network affiliation agreements	$	70,430	$	(9,499	)	$	60,931
Customer lists		4,209		(3,583	)		626
Non-compete agreements		8,710		(8,701	)		9
Other		2,726		(1,558	)		1,168
Total	$	86,075	$	(23,341	)	$	62,734
December 25, 2011
Network affiliation agreements	$	26,930	$	(8,129	)	$	18,801
Customer lists		5,952		(4,862	)	$	1,090
Non-compete agreements		10,120		(10,095	)	$	25
Other		3,824		(2,340	)	$	1,484
Total	$	46,826	$	(25,426	)	$	21,400

During 2012, our community newspapers and shoppers business reporting unit sold its Northern Wisconsin Publishing group. As part of the transactions, we wrote off customer lists, non-compete agreements and other intangible assets with a net carrying amount of $390. During 2011, our community newspapers and shoppers business reporting unit sold several businesses in Florida. As part of the transactions, we wrote off customer lists, non-compete agreements and other intangible assets with a net carrying amount of $21.

Weighted-average amortization period:	Years
Network affiliation agreements		25
Customer lists		9
Non-compete agreements		5
Other		16

Broadcast Licenses

Broadcast licenses are deemed to have indefinite useful lives because we have renewed these agreements without issue in the past and we intend to renew them indefinitely in the future. Accordingly, we expect the cash flows from our broadcast licenses to continue indefinitely. The carrying value of our broadcast licenses was $129,566 and $81,547 as of December 30, 2012 and December 25, 2011, respectively.

2012 Annual Impairment Test

Our annual impairment test on broadcast licenses was performed at individual television and radio stations as of September 24, 2012. The impairment tests indicated two of our television broadcast licenses and two of our radio broadcast licenses were impaired due to declines in revenue share, declines in projected long-term market revenues, and a reduction in radio perpetuity growth rates. In accordance with the FASB's guidance for goodwill and intangible assets, our broadcast licenses were written down to their estimated fair value of $79,866 (excludes the broadcast license acquired in December 2012 with the acquisition of NewsChannel 5 Network, LLC), resulting in a $952 non-cash impairment charge for television and a $729 non-cash impairment charge for radio in the fourth quarter of 2012.

For broadcast licenses at individual television and radio stations, we use the Greenfield method, an income approach commonly used in the broadcast sector, to estimate fair value. This approach assumes the start up of a new station by an independent market participant, and incorporates assumptions that are based on past experiences and judgments about future market performance. These variables include, but are not limited to: the forecasted growth rate of each market (including market population, household income and retail sales), estimated market share, profit margins and operating cash flows of an independent station within a market, estimated capital expenditures and start up costs, risk-adjusted discount rate, likely media competition within the market and expected growth rates into perpetuity to estimate terminal values. Adverse changes in significant assumptions such as an increase in discount rates, or a decrease in projected market revenues, market share or operating cash flows could result in additional non-cash impairment charges on our broadcast licenses in future periods, which could have a material impact on our financial condition and results of operations.

The fair value measurements determined for purposes of performing our impairment tests are considered level 3 under the fair value hierarchy because they require significant unobservable inputs to be developed using estimates and assumptions which we determine and reflect those that a market participant would use.

2011 Annual Impairment Test

Our annual impairment test on broadcast licenses was performed at individual television and radio stations as of September 26, 2011. The impairment tests indicated three of our television broadcast licenses were impaired due to a decline in projected long-term market revenues and an increase in the discount rates. The changes in the discount rate used for our broadcast licenses are primarily driven by changes in the expected return on the public equity of comparable companies in the television and media sector and the average cost of capital. In accordance with the FASB's guidance for goodwill and intangible assets, our broadcast licenses were written down to their estimated fair value of $81,547, resulting in an $879 non-cash impairment charge in the fourth quarter of 2011.

2010 Interim and Annual Impairment Tests

Our annual impairment test on broadcast licenses was performed at individual television and radio stations as of September 27, 2010 and results indicated there was no impairment of our broadcast licenses.

Goodwill

2012 Interim and Annual Impairment Tests

For purposes of testing the carrying value of goodwill related to our broadcasting reporting unit, we determine fair value by using an income and a market valuation approach. The income approach uses expected cash flows of the reporting unit. The cash flows are discounted for risk and time value. In addition, the present value of the projected residual value is estimated and added to the present value of the cash flows. The market approach is based on price multiples of publicly traded stocks of comparable companies to estimate fair value. We assign a greater weight to the income approach as the market approach is deemed less reliable due to the differences in entity size and business model between our broadcasting reporting unit and the comparable companies selected. We base our fair value estimates, in large measure, on projected financial information which we believe to be reasonable. However, actual future results may differ from those projections, and those differences may be material. The valuation methodology used to estimate the fair value of our reporting unit requires inputs and assumptions (i.e., market growth, operating cash flow margins and discount rates) that reflect current market conditions as well as management judgment.

For purposes of testing the carrying value of goodwill related to our community newspaper and shoppers reporting unit, we determine fair value using an income and a market valuation approach. The income approach uses expected cash flows of the reporting unit. The cash flows are discounted for risk and time value. In addition, the present value of the projected residual value is estimated and added to the present value of the cash flows. The market approach is based on price multiples of publicly traded stocks of comparable companies to estimate fair value. Each approach estimated a fair value exceeding carrying value. We base our fair value estimates on various assumptions about our projected operating results, including continuing declines in publishing revenues as well as an expectation that we will achieve cash flow benefits from our continuing cost cutting measures. The valuation methodology used to estimate the fair value of our reporting unit requires inputs and assumptions (i.e., market growth, operating cash flow margins and discount rates) that reflect current market conditions as well as management judgment. These assumptions may change due to changes in market conditions and such changes may result in an impairment of our goodwill. Actual operating results may not achieve these assumptions in the near term and such results may result in future impairment.

2011 Interim and Annual Impairment Tests

During the third quarter of 2011, we sold the remaining Florida-based businesses of our community newspapers and shoppers reporting unit. In conjunction with the sale, an interim impairment test as of September 25, 2011 was performed on the carrying value of $3,857 of goodwill associated with this reporting unit. Our interim impairment test indicated there was no goodwill impairment.

Our annual impairment tests on goodwill associated with the broadcasting and community newspaper and shoppers reporting units as of September 26, 2011 indicated there was no impairment of our goodwill.

2010 Annual Impairment Test

Our annual impairment tests on goodwill as of September 27, 2010 indicated there was no impairment of our goodwill.

The changes in the carrying amount of goodwill by reporting segment during the years ended December 30, 2012 and December 25, 2011 are as follows:

	Broadcasting			Publishing			Total
Goodwill	$	233,976		$	21,007		$	254,983
Accumulated impairment losses		(229,163	)		(16,722	)		(245,885	)
Balance as of December 26, 2010		4,813			4,285			9,098
Goodwill related to the sale of a business		-			(428	)		(428	)
Goodwill		233,976			20,579			254,555
Accumulated impairment losses		(229,163	)		(16,722	)		(245,885	)
Balance as of December 25, 2011		4,813			3,857			8,670
Goodwill related to the sale of a business		-			(923	)		(923	)
Goodwill related to the purchase of a business		118,071			-			118,071
Goodwill		352,047			19,656			371,703
Accumulated impairment losses		(229,163	)		(16,722	)		(245,885	)
Balance as of December 30, 2012	$	122,884		$	2,934		$	125,818

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COMMITMENTS AND CONTINGENCIES

12 Months Ended

Dec. 30, 2012

COMMITMENTS AND CONTINGENCIES [Abstract]

COMMITMENTS AND CONTINGENCIES

5      COMMITMENTS AND CONTINGENCIES

We lease office space, certain broadcasting facilities, distribution centers, delivery vehicles and equipment under both short-term and long-term leases accounted for as operating leases. Some of the lease agreements contain renewal options and rental escalation clauses, as well as provisions for the payment of utilities, maintenance and taxes.

As of December 30, 2012, our future minimum rental payments due under noncancellable operating lease agreements consist of the following:

	Due In
	Fiscal Year
2013	$	2,995
2014		2,026
2015		1,421
2016		807
2017		706
Thereafter		2,549
	$	10,504

Our publishing businesses lease print equipment and delivery trucks accounted for as capital leases. As of December 30, 2012, our future minimum rental payments due under capital lease agreements consist of the following:

	Due In
	Fiscal Year
2013	$	54
2014		45
2015		47
2016		20
2017		-
	$	166

Rent expense charged to our continuing operations for 2012, 2011 and 2010 was $4,545, $4,207 and $5,038, respectively. We amortize rent expense on a straight-line basis for leases with rent escalation clauses. Rental income from subleases included in our continuing operations for 2012, 2011 and 2010 was $218, $67, and $38, respectively. There were no noncancellable subleases as of December 30, 2012.

At December 30, 2012, we had no purchase commitments at our broadcasting business related to building improvements.

We have $2,320 of standby letters of credit for business insurance purposes.

Over the next four years, we are committed to purchase and provide advertising time in the amount of $9,103 for television program rights that currently are not available for broadcast, including programs not yet produced. If such programs are not produced, our corresponding commitment would expire without obligation.

We provided a guarantee to the landlord of our former New England community newspapers and shopper business, which was sold in 2007, with respect to tenant liabilities and obligations associated with a lease which expires in December 2016. As of December 30, 2012, our potential obligation pursuant to the guarantee was $725, plus costs of collection, attorney fees and other charges incurred if the tenant defaults. As part of the sales transaction, we received a guarantee from the parent entity of the buyer of our New England business that the buyer will satisfy all the liabilities and obligations of the assigned lease. In the event that the buyer fails to satisfy its liabilities and obligations and the landlord invokes our guarantee, we have a right to indemnification from the buyer's parent entity.

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EMPLOYEE BENEFIT PLANS

12 Months Ended

Dec. 30, 2012

EMPLOYEE BENEFIT PLANS [Abstract]

EMPLOYEE BENEFIT PLANS

3  EMPLOYEE BENEFIT PLANS

We have a defined benefit pension plan covering certain employees. The plan provides benefits based on years of service and the average compensation for the employee's last five years of employment. Plan assets consist primarily of listed stocks and government and other bonds.

We also sponsor an unfunded non-qualified pension plan for certain employees whose benefits under the pension plan and the 401(k) plan may be restricted due to limitations imposed by the Internal Revenue Service. The disclosure for the unfunded non-qualified pension plan for all years presented is combined with the defined benefit pension plan.

In addition, we provide postretirement health benefits to certain retirees and their eligible spouses and certain full-time active employees who did not attain age 50 by December 31, 2006. Full-time active employees who retire after April 1, 2007 do not receive an employer contribution for health benefits after attaining age 65. Due to certain plan changes, we do not expect the plan will qualify for actuarial equivalent pharmaceutical benefits under the Medicare Part D federal subsidy.

							Other
	Pension Benefits						Postretirement Benefits
Years ended December 30 and December 25	2012			2011			2012			2011
Change in benefit obligations
Benefit obligation at beginning of year	$	171,028		$	151,151		$	17,274		$	17,342
Service cost		-			-			14			53
Interest cost		7,578			7,850			630			827
Actuarial loss		12,322			20,941			(2,010	)		1,009
Benefits paid		(8,924	)		(8,914	)		(1,300	)		(1,957	)
Benefit obligation at end of year	$	182,004		$	171,028		$	14,608		$	17,274

							Other
	Pension Benefits						Postretirement Benefits
Years ended December 30 and December 25	2012			2011			2012			2011
Change in plan assets
Fair value of plan assets at beginning of year	$	96,699		$	109,103		$	-		$	-
Actual gain (loss) on plan assets		11,672			(3,865	)		-			-
Company contributions		3,155			375			1,300			1,957
Benefits paid		(8,924	)		(8,914	)		(1,300	)		(1,957	)
Fair value of plan assets at end of year	$	102,602		$	96,699		$	-		$	-
Funded status	$	(79,402	)	$	(74,329	)	$	(14,608	)	$	(17,274	)

							Other
	Pension Benefits						Postretirement Benefits
Years ended December 30 and December 25	2012			2011			2012			2011
Acounts recognized in consolidated balance sheets
Current liabilities	$	(476	)	$	(489	)	$	(1,645	)	$	(1,850	)
Noncurrent liabilities		(78,926	)		(73,840	)		(12,963	)		(15,424	)
Total	$	(79,402	)	$	(74,329	)	$	(14,608	)	$	(17,274	)

	Pension Benefits
			Prior			Deferred
	Actuarial		Service			Income
	Loss, Net		Credit			Taxes			Total
Amounts recognized in accumulated other comprehensive loss
As of December 25, 2011	$	86,151	$	(58	)	$	(34,268	)	$	51,825
Current year change		7,066		10			(2,784	)	$	4,292
As of December 30, 2012	$	93,217	$	(48	)	$	(37,052	)	$	56,117

	Other Postretirement Benefits
	Actuarial			Prior						Deferred
	Loss			Service			Transition			Income
	(Gain), Net			Credit			Obligation			Taxes			Total
Amounts recognized in accumulated other comprehensive loss
As of December 25, 2011	$	2,381		$	(1,002	)	$	546		$	(768	)	$	1,157
Current year change		(2,198	)		219			(546	)		990		$	(1,535	)
As of December 30, 2012	$	183		$	(783	)	$	-		$	222		$	(378	)

The accumulated benefit obligation for the pension plans was $182,004 and $171,028 at December 30, 2012 and December 25, 2011, respectively.

	Pension Benefits
Years ended December 30, December 25 and December 26	2012			2011			2010
Components of net periodic benefit cost
Service cost	$	-		$	-		$	-
Interest cost		7,578			7,850			8,197
Expected return on plan assets		(8,454	)		(9,594	)		(10,224	)
Curtailment gain		-			-			(1,109	)
Amortization of:
Unrecognized prior service credit		(10	)		(10	)		(131	)
Unrecognized net loss		2,038			979			3,080
Net periodic benefit cost included in operating costs and expenses and selling and administrative expenses	$	1,152		$	(775	)	$	(187	)

On October 12, 2010, our board of directors approved an amendment to our qualified defined benefit pension plan to permanently suspend the plan and permanently cease all benefit accruals under the plan effective January 1, 2011 for all active participants, except for any employee covered by a collective bargaining agreement which requires us to bargain over the permanent suspension of the plan accruals. The accrual of plan benefits had been temporarily suspended from July 1, 2009 through December 31, 2010. For those bargaining unit participants, the temporary suspension of plan accruals was extended until December 31, 2012.

We also permanently suspended the unfunded non-qualified plan, which provided additional benefits to certain employees whose benefits under the pension plan and 401(k) plan were restricted due to limitations imposed by the Internal Revenue Service.

The reduction of benefits under the qualified defined benefit pension plan and the unfunded non-qualified plan resulted in a curtailment gain of $1,109 in 2010. In addition, due to the amendments for these pension plans, plan assets and obligations were remeasured.

	Other Postretirement Benefits
Years ended December 30, December 25 and December 26	2012			2011			2010
Components of net periodic benefit cost
Service cost	$	14		$	53		$	85
Interest cost		630			827			951
Amortization of:
Unrecognized prior service credit		(219	)		(219	)		(219	)
Unrecognized net transition obligation		546			549			549
Unrecognized net loss		188			-			-
Net periodic benefit cost included in selling and administrative expenses	$	1,159		$	1,210		$	1,366

The unrecognized net loss and prior service credit for the defined benefit pension plans that is expected to be amortized from accumulated other comprehensive income into net periodic benefit cost over the next fiscal year is $2,787 and ($10), respectively. The prior service credit and transition obligation for the other postretirement pension plan that is expected to be amortized from other accumulated comprehensive income into net periodic benefit cost over the next fiscal year is ($219) and $0, respectively.

The costs for our pension benefits and other postretirement benefits are actuarially determined. Key assumptions utilized at the measurement dates of December 30, 2012 and December 25, 2011 for pension benefits and for other postretirement benefits include the following:

Weighted-average assumptions used to determine benefit obligations:

							Other
	Pension Benefits						Postretirement Benefits
December 30 and December 25	2012			2011			2012			2011
Discount rate		3.95	%		4.55	%		2.75	%		3.85	%
Rate of compensation increases		-			-			-			-

Weighted-average assumptions used to determine net periodic benefit cost:

										Other
	Pension Benefits									Postretirement Benefits
December 30, December 25 and December 26	2012			2011			2010			2012			2011			2010
Discount rate		4.55	%		5.35	%		5.70/4.70	%		3.85	%		4.95	%		5.50	%
Expected return on plan assets		7.75			8.25			8.50/8.25			-			-			-
Rate of compensation increases		-			-			4.80			-			-			-

Due to the amendments to the pension plans, the measurement of the net periodic benefit cost from the beginning of 2010 through October 12, 2010 was based upon a 5.70% discount rate and an 8.50% expected rate of return on plan assets. The measurement of the net periodic pension benefit cost from the amendment date to the end of 2010 was based upon a 4.70% discount rate and an 8.25% expected rate of return on plan assets.

To determine the discount rate assumptions for the pension and the postretirement benefit plans, we studied our plans' specific discount rate by matching our projected benefit payments to a yield curve developed from high grade corporate bonds. The results of those studies were used as the benchmark to determine the discount rate assumptions.

We studied historical markets to determine the long-term rate of return assumption for plan assets. We preserved the long-term historical relationships between equities and fixed-income securities, consistent with the widely accepted capital market principle that assets with higher volatility generate a greater return over the long run. We evaluate current market factors such as inflation and interest rates before we determine long-term capital market assumptions. We review peer data and historical returns to check for reasonableness and appropriateness. We anticipate our expected rate of return on plan assets assumption to be 7.25% for our 2013 valuation.

The assumed health care cost trend rate used in measuring the postretirement benefit obligation for retirees for 2012 is 9.50%, grading down to 5.00% in the year 2021 and thereafter. The assumed health care cost trend rates have a significant effect on the amounts reported for other postretirement benefits. A 1% change in the assumed health care cost trend rate would have the following effects:

	1%		1%
	Increase		Decrease
Effect on total of service and interest cost components in 2013	$	83	$	(78	)
Effect on postretirement benefit obligation as of December 30, 2012	$	223	$	(215	)

Plan Assets

The following tables present the fair value of our plan assets by level of the fair value hierarchy. In accordance with the FASB's guidance for fair value measurements, level 1 inputs are quoted prices in active markets for identical assets; level 2 inputs are significant other observable inputs; and level 3 inputs are significant unobservable inputs.

	Level 1		Level 2		Level 3
	Inputs		Inputs		Inputs		Total
December 30, 2012
Cash	$	715	$	-	$	-	$	715
Mutual funds		89,430		-		-		89,430
Money-market fund		7		-		-		7
Collective trust fund		-		12,450		-		12,450
		90,152		12,450		-		102,602
Unsettled trades of common stock		-		-		-		-
Fair value of plan assets	$	90,152	$	12,450	$	-	$	102,602
	Level 1		Level 2		Level 3
	Inputs		Inputs		Inputs		Total
December 25, 2011
Common stocks	$	-	$	9,503	$	-	$	9,503
Mutual funds		74,665		-		-		74,665
Money-market fund		455		-		-		455
Collective trust fund		-		12,018		-		12,018
		75,120		21,521		-		96,641
Unsettled trades of common stock		-		58		-		58
Fair value of plan assets	$	75,120	$	21,579	$	-	$	96,699

Our pension plan weighted average asset allocations at December 30, 2012 and December 25, 2011 by asset category are as follows:

	Plan Assets
December 30 and December 25	2012			2011
Equity securities		65.2	%		69.1	%
Fixed-income securities		34.9			30.4
Other		(0.1	)		0.5
Total		100.0	%		100.0	%

We employ a total return investment approach whereby a mix of equity and fixed-income investment funds are used to maximize the long-term return of plan assets for a prudent level of risk. We establish our risk tolerance through careful consideration of plan liabilities, plan funded status and our financial condition. The investment portfolio contains a diversified blend of equity and debt investments. The equity component is diversified across U.S. and non-U.S. stocks, as well as growth, value and small and large capitalization stocks. The fixed-income component is diversified across the maturity, quality and sector spectrum. The portfolio may also hold cash equivalents. Fund managers may use derivatives only if the vehicle is deemed by the manager to be more attractive than a similar direct investment in the underlying cash market, or if the vehicle is being used to manage risk of the portfolio. Derivatives, however, may not be used in a speculative manner or to leverage the portfolio. We measure and monitor investment risk on an ongoing basis through quarterly investment portfolio reviews, annual liability measurements and periodic asset/liability allocation studies. The asset mix guidelines for the plan are as follows:

	Percent of Total Portfolio
	Minimum			Target			Maximum
Large capitalization U.S. stocks		30.0	%		35.0	%		40.0	%
Small capitalization U.S. stocks		15.0			20.0			25.0
International stock		10.0			15.0			20.0
Fixed-income securities		20.0			25.0			35.0
Cash equivalents		-			5.0			5.0

Contributions

We fund our defined benefit pension plan at the minimum amount required by the Pension Protection Act of 2006. During 2012, we contributed $2,768 to our qualified defined benefit pension plan and non-qualified pension plan, respectively. Based on the most recent current projections and after giving effect to our election under the recently enacted Moving Ahead for Progress in the 21st Century Act (MAP-21) pension legislation, we expect to contribute $910 to our qualified defined benefit pension plan in 2013. We expect to contribute $476 to our unfunded non-qualified pension plan in 2013.

Benefit Payments

The following benefit payments, which reflect expected future service, as appropriate, are expected to be paid with future contributions to the plan or directly from plan assets, as follows:

			Other
	Pension		Postretirement
	Benefits		Benefits
2013	$	9,194	$	1,645
2014		9,411		1,585
2015		9,644		1,538
2016		9,787		1,479
2017		9,935		1,447
2018-2022		51,948		5,667

The 401(k) plan is a defined contribution benefit plan covering substantially all employees. The plan allows employees to defer up to 50% of their eligible wages, up to the IRS limit, on a pre-tax basis. In addition, employees can contribute up to 50% of their eligible wages after taxes. The maximum combined total contribution may not exceed 50% of each employee's eligible wages. Each employee who elects to participate is eligible to receive company matching contributions. Prior to the suspension of our matching contributions in February 2009, we contributed $0.50 for each dollar contributed by the participant, up to 5% of their eligible wages, for a maximum match of 2.5% of eligible wages, as defined by the 401(k) plan. The matching contributions, recorded as an operating expense, were $1,979, $2,070, and $0 in 2012, 2011, and 2010, respectively. Effective January 1, 2011, the matching contribution to our 401(k) plan was enhanced and we contribute $0.50 for each dollar contributed by the 401(k) participant, up to 7% of their eligible wages, for a maximum match of 3.5% of eligible wages, as defined by the 401(k) plan.

Prior to 2010, we made additional contributions into the 401(k) on behalf of certain employees not covered by the defined benefit pension plan and for employees who elected to freeze their defined pension benefits under our Annual Employer Contribution (AEC) plan. In March 2009, our board of directors approved an amendment to our 401(k) plan to suspend the AEC contribution for all active employees for 18 months beginning July 1, 2009. Our 401(k) plan was further amended on October 12, 2010. Effective January 1, 2011, the AEC is no longer a component of the 401(k) plan.

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INCOME TAXES

12 Months Ended

Dec. 30, 2012

INCOME TAXES [Abstract]

INCOME TAXES

4  INCOME TAXES

The components of the provision (benefit) for income taxes consist of the following:

Years ended December 30, December 25 and December 26	2012		2011		2010
Continuing operations
Current:
Federal	$	5,080	$	1,583	$	8,498
State		283		958		1,963
Total current		5,363		2,541		10,461
Deferred:
Federal		13,445		10,236		8,248
State		3,398		1,635		356
Total deferred		16,843		11,871		8,604
Total provision for income taxes for continuing operations	$	22,206	$	14,412	$	19,065
Discontinued operations
Current:
Federal	$	-	$	174	$	2,465
State		-		37		278
Total current		-		211		2,743
Deferred:
Federal		-		10		(459	)
State		-		-		36
Total deferred		-		10		(423	)
Total provision (benefit) for income taxes for discontinued operations	$	-	$	221	$	2,320

The significant differences between the statutory federal income tax rates and the effective income tax rates are as follows:

Years ended December 30, December 25 and December 26	2012			2011			2010
Statutory federal income tax rate		35.0	%		35.0	%		35.0	%
State income taxes, net of federal tax benefit		5.0			5.1			4.8
Revaluation of deferred taxes due to sale of printing services business		-			-			(1.5	)
Other		-			(0.3	)		0
Effective income tax (benefit) rate		40.0	%		39.8	%		38.3	%

Temporary differences that give rise to the deferred tax assets and liabilities at December 30, 2012 and December 25, 2011 are as follows:

	2012			2011
Current assets
Receivables	$	737		$	655
Inventories		32			17
Other assets		666			658
Accrued compensation		737			946
Accrued state taxes		-			166
Accrued employee benefits		998			1,151
Total current deferred tax assets		3,170			3,593
Current liabitites
Accrued state taxes		(117	)		-
Total current deferred tax liability		(117	)		-
Total net current deferred tax assets	$	3,053		$	3,593
Non-current assets
Accrued employee benefits	$	34,446		$	33,394
State deferred income taxes		4,533			6,277
State net operating loss		2,122			2,410
Intangible assets		21,664			30,208
Other assets		278			176
Total non-current deferred tax assets		63,043			72,465
Non-current liabilities
Property and equipment		(19,729	)		(15,172	)
Valuation allowances		(199	)		(57	)
Other liabilities		(96	)		-
Total non-current deferred tax assets		(20,024	)		(15,229	)
Total net non-current deferred tax assets	$	43,019		$	57,236

We deduct broadcast licenses and tax-deductible goodwill over a period of 15 years from the date of acquisition. The non-cash goodwill and broadcast license impairment charges recorded in 2012 and 2011 are not currently deductible for income tax purposes and have caused us to recognize a deferred tax asset. We believe it is more likely than not that we will realize a tax benefit for our deferred tax assets and we believe that they will be utilized to offset future taxable income over the next 20 years in accordance with current income tax law. In the future, we may be required to record a valuation allowance against our deferred tax assets if we have future operating losses or reductions in our expected future profitability which would cause us to believe we would be unable to utilize them.

At December 30, 2012, we have $2,122 of tax-effected state net operating loss carryforwards available to offset against future taxable income over the next 20 years. The net operating losses begin expiring in 2014. To the extent we believe it is more likely than not that certain of the net operating loss carryforwards will expire unused, we have recorded $4 in valuation allowances. There are also $195 of capital loss carryforwards that will expire in 2017. We have $195 in valuation allowances for these capital loss carryforwards due to uncertainties surrounding their use.

We file tax returns in the United States federal jurisdiction, as well as in approximately 15 state and local jurisdictions. The statute of limitations for assessing additional taxes is three years for federal purposes and typically between three and four years for state and local purposes. Accordingly, our 2009 through 2011 tax returns are open for federal purposes, and our 2008 through 2011 tax returns remain open for state tax purposes, unless the statute of limitations has been previously extended. Currently, we are under audit by the IRS for our 2010 and 2011 tax returns, in Wisconsin for our 2004 through 2007 tax returns and Illinois for our 2006 and 2007 tax returns.

As of December 30, 2012, our liability for unrecognized tax benefits was $762, which, if recognized, would have an impact on our effective tax rate. As of December 30, 2012, it is reasonably possible for $102 of unrecognized tax benefits and related interest to be recognized within the next 12 months due to settlements with taxing authorities.

The following table summarizes the activity related to our unrecognized tax benefits during 2012, 2011 and 2010:

	2012			2011			2010
Beginning balance	$	885		$	913		$	1,058
Increases related to current year tax provisions		-			-			18
Increases due to prior year tax provisions		-			14			6
Decreases related to prior year tax provisions		-			(10	)		-
Decreases due to the expiration of statutes of limitations		(7	)		(32	)		(56	)
Decreases due to settlements		(116	)		-			(113	)
Ending Balance	$	762		$	885		$	913

We recognize interest income/expense and penalties related to unrecognized tax benefits in our provision for income taxes. At December 30, 2012 and December 25 2011, we had $229 and $282, respectively, accrued for interest expense and penalties. During 2012 and 2011, we recognized $29 and $51 of interest expense, respectively, related to unrecognized tax benefits. Our liability for interest and penalties decreased by $82 due to settlements with taxing authorities.

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SHAREHOLDERS' EQUITY

12 Months Ended

Dec. 30, 2012

SHAREHOLDERS' EQUITY [Abstract]

SHAREHOLDERS' EQUITY

6      SHAREHOLDERS' EQUITY

On August 13, 2012, we repurchased all 3,264 outstanding shares of our class C common stock, including all rights associated with such shares of class C common stock. In conjunction with the repurchase, we paid $6,246 in cash equal to the amount of the minimum unpaid and undeclared dividend on the class C common stock through August 12, 2012. We currently have two classes of common stock outstanding. At December 25, 2011, undeclared and unpaid class C dividends were $5,100 and were reported in other long-term liabilities in the consolidated balance sheets.

Class B shares are held by our current and former employees, our non-employee directors and Grant family shareholders. These shares are entitled to ten votes per share, and are convertible to class A shares at the option of the holder after first offering to sell them to other eligible purchasers through the offer procedures set forth in our articles of incorporation. Dividends on class B shares are equal to those declared on the class A shares. Class A shares are publicly traded on the New York Stock Exchange under the symbol "JRN". In 2011, we retired 8,677 class B shares that we held in our treasury. These shares are now designated as authorized and unissued. The excess of the cost of treasury stock over its par value was allocated between retained earnings and paid-in capital.

The changes in the number of shares of our common stock (excluding Treasury stock) during 2012, 2011 and 2010 are as follows (in thousands):

	Common Stock
	Class C			Class B			Class A
Balance at December 27, 2009		3,264			9,642			41,783
Conversion of class B shares to class A shares		-			(1,413	)		1,413
Shares issued under equity incentive and employee stock purchase plans		-			366			-
Balance at December 26, 2010		3,264			8,595			43,196
Conversion of class B shares to class A shares		-			(1,683	)		1,683
Shares repurchased		-			-			(1,100	)
Shares issued under equity incentive and employee stock purchase plans		-			302			-
Balance at December 25, 2011		3,264			7,214			43,779
Conversion of class B shares to class A shares		-			(682	)		682
Shares repurchased		(3,264	)					(710	)
Shares issued under equity incentive and employee stock purchase plans		-			374			-
Balance at December 30, 2012		-			6,906			43,751

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GOODWILL, BROADCAST LICENSES AND OTHER INTANGIBLE ASSETS (Tables)

12 Months Ended

Dec. 30, 2012

GOODWILL, BROADCAST LICENSES AND OTHER INTANGIBLE ASSETS [Abstract]

Gross carrying amount, accumulated amortization and net carrying amount of the major classes of definite-lived intangible assets

The gross carrying amount, accumulated amortization and net carrying amount of the major classes of definite-lived intangible assets as of December 30, 2012 and December 25, 2011 is as follows:

	Gross					Net
	Carrying		Accumulated			Carrying
	Amount		Amortization			Amount
December 30, 2012
Network affiliation agreements	$	70,430	$	(9,499	)	$	60,931
Customer lists		4,209		(3,583	)		626
Non-compete agreements		8,710		(8,701	)		9
Other		2,726		(1,558	)		1,168
Total	$	86,075	$	(23,341	)	$	62,734
December 25, 2011
Network affiliation agreements	$	26,930	$	(8,129	)	$	18,801
Customer lists		5,952		(4,862	)	$	1,090
Non-compete agreements		10,120		(10,095	)	$	25
Other		3,824		(2,340	)	$	1,484
Total	$	46,826	$	(25,426	)	$	21,400

Weighted average amortization period

During 2012, our community newspapers and shoppers business reporting unit sold its Northern Wisconsin Publishing group. As part of the transactions, we wrote off customer lists, non-compete agreements and other intangible assets with a net carrying amount of $390. During 2011, our community newspapers and shoppers business reporting unit sold several businesses in Florida. As part of the transactions, we wrote off customer lists, non-compete agreements and other intangible assets with a net carrying amount of $21.

Weighted-average amortization period:	Years
Network affiliation agreements		25
Customer lists		9
Non-compete agreements		5
Other		16

Changes in the carrying amount of goodwill by reporting segment

The changes in the carrying amount of goodwill by reporting segment during the years ended December 30, 2012 and December 25, 2011 are as follows:

	Broadcasting			Publishing			Total
Goodwill	$	233,976		$	21,007		$	254,983
Accumulated impairment losses		(229,163	)		(16,722	)		(245,885	)
Balance as of December 26, 2010		4,813			4,285			9,098
Goodwill related to the sale of a business		-			(428	)		(428	)
Goodwill		233,976			20,579			254,555
Accumulated impairment losses		(229,163	)		(16,722	)		(245,885	)
Balance as of December 25, 2011		4,813			3,857			8,670
Goodwill related to the sale of a business		-			(923	)		(923	)
Goodwill related to the purchase of a business		118,071			-			118,071
Goodwill		352,047			19,656			371,703
Accumulated impairment losses		(229,163	)		(16,722	)		(245,885	)
Balance as of December 30, 2012	$	122,884		$	2,934		$	125,818

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DISCONTINUED OPERATIONS (Details) (USD $) In Thousands, unless otherwise specified	12 Months Ended			3 Months Ended	12 Months Ended				12 Months Ended
	Dec. 30, 2012 NorthStar Print Group, Inc. [Member]	Dec. 25, 2011 NorthStar Print Group, Inc. [Member]	Dec. 26, 2010 NorthStar Print Group, Inc. [Member]	Jun. 27, 2010 Prime Net Marketing Services [Member]	Dec. 30, 2012 Prime Net Marketing Services [Member]	Dec. 25, 2011 Prime Net Marketing Services [Member]	Dec. 26, 2010 Prime Net Marketing Services [Member]	Feb. 08, 2010 Prime Net Marketing Services [Member]	Dec. 30, 2012 IPC Print Services, Inc [Member]	Dec. 25, 2011 IPC Print Services, Inc [Member]	Dec. 26, 2010 IPC Print Services, Inc [Member]	Dec. 13, 2010 IPC Print Services, Inc [Member]
Income Statement, Balance Sheet and Additional Disclosures by Disposal Groups, Including Discontinued Operations [Line Items]
Net proceeds		$ 822					$ 123				$ 14,005
Pre-tax gain		610
Revenue and earnings before income taxes as reported in earnings from discontinued operations [Abstract]
Revenue	0	0	0		0	0	2,144		0	0	40,685
Earnings before income taxes	0	562	0		0	0	(1,060)		0	0	1,672
Number of separate transactions for sale of assets							2
Shutdown related costs				373
Note receivable								700
Number of years for note receivable							4 years
Working capital note receivable								147
Number of years for working capital note repayable							3 years
Gain on discontinued operations before income taxes												5,411
Escrow fund												$ 731
Number of years for purchase agreement											2 years

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DISCONTINUED OPERATIONS

12 Months Ended

Dec. 30, 2012

DISCONTINUED OPERATIONS [Abstract]

DISCONTINUED OPERATIONS

11    DISCONTINUED OPERATIONS

NorthStar Print Group, Inc.

During 2005, Multi-Color Corporation (Multi-Color) acquired substantially all of the assets and certain liabilities of NorthStar Print Group, Inc. (NorthStar), our former label printing business. Certain liabilities were excluded from the sale of NorthStar and primarily consisted of environmental site closure costs for both the Green Bay, Wisconsin real estate and real estate located in Norway, Michigan. In January 2011, upon environmental site closure in Green Bay, Wisconsin, we sold the real estate holdings to Multi-Color according to the 2005 sale agreement. The net proceeds were $822 and we recorded a pre-tax gain of $610. We continue to have environmental site closure obligations with respect to the Norway, Michigan real estate, which was sold to Multi-Color in 2005.

The following table summarizes NorthStar's revenue and earnings before income taxes as reported in earnings (loss) from discontinued operations, net of applicable income taxes in the consolidated statements of operations for all periods presented:

	2012		2011		2010
Years ended December 30, December 25 and December 26
Revenue	$	-	$	-	$	-
Earnings before income taxes	$	-	$	562	$	-

PrimeNet Marketing Services

During 2010, we sold substantially all of the operating assets of PrimeNet, our former direct marketing services business, located in St. Paul, Minnesota and Clearwater, Florida in two separate transactions. On February 3, 2010, certain direct mail and mail services operating assets located in St. Paul, Minnesota were sold for $123. The remaining Minnesota-based assets were shutdown in April 2010, and accordingly, we recorded $373 for shutdown related costs in the second quarter of 2010. In a separate transaction, on February 8, 2010, we sold the Clearwater, Florida-based operations of PrimeNet for a $700 note repayable over four years and a $147 working capital note repayable over three years. The consideration received in each transaction approximates the net book value of the assets sold. PrimeNet was previously reported in our "Other" segment.

The following table summarizes PrimeNet's revenue and loss before income taxes as reported in earnings (loss) from discontinued operations, net of applicable income taxes in the consolidated statements of operations for all periods presented:

	2012		2011		2010
Years ended December 30, December 25 and December 26
Revenue	$	-	$	-	$	2,144
Earnings before income taxes	$	-	$	-	$	(1,060	)

IPC Print Services, Inc.

On December 13, 2010, we sold substantially all of the assets and certain liabilities of IPC, our former printing services business to Walsworth Publishing Company (Walsworth). Proceeds, net of transaction expenses, were $14,005 and resulted in a gain on discontinued operations before income taxes of $5,411. An escrow fund in the amount of $731 was established to secure our representations and warranties pursuant to the purchase agreement for two years from the date of the sale. We received this payment in full in 2012. The operations of IPC have been reflected as discontinued operations in our consolidated financial statements for all periods presented. IPC was previously reported as our "Printing services" segment.

The following table summarizes IPC's revenue and earnings before income taxes as reported in earnings (loss) from discontinued operations, net of applicable income taxes in the consolidated statements of operations for all periods presented:

	2012		2011		2010
Years ended December 30, December 25 and December 26
Revenue	$	-	$	-	$	40,685
Earnings before income taxes	$	-	$	-	$	1,672

Certain liabilities were excluded from the sale of IPC and were included in continuing operations in the December 26, 2010 consolidated condensed balance sheet. These liabilities included certain expenses which were incurred prior to closing, and a working capital overpayment due back to Walsworth pursuant to the sale agreement. The liabilities were paid in the third quarter of 2011.

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SCHEDULE II CONSOLIDATED VALUATION AND QUALIFYING ACCOUNTS

12 Months Ended

Dec. 30, 2012

SCHEDULE II - CONSOLIDATED VALUATION AND QUALIFYING ACCOUNTS [Abstract]

SCHEDULE II - CONSOLIDATED VALUATION AND QUALIFYING ACCOUNTS

JOURNAL COMMUNICATIONS, INC.

SCHEDULE II - CONSOLIDATED VALUATION AND QUALIFYING ACCOUNTS

Years ended December 30, 2012, December 25, 2011 and December 26, 2010

(dollars in thousands)

	Balance at		Additions								Balance at
	Beginning		Charged to		Other Additions						End
Description	of Year		Earnings		(Deductions)			Deductions			of Year
Allowance for doubtful accounts:
2012	$	1,870	$	2,499	$	346	(1)	$	2,247	(3)	$	2,468	(4)
2011	$	3,286	$	3,242	$	(1,105	)(2)	$	3,553	(3)	$	1,870	(4)
2010	$	3,732	$	2,994	$	-		$	3,440	(3)	$	3,286	(4)
Deferred income taxes
Valuation allowances on state net operating loss and tax credit carryforwards:
2012	$	57	$	-	$	195	(5)	$	53	(6)	$	199
2011	$	116	$	-	$	-		$	59	(6)	$	57
2010	$	202	$	-	$	-		$	86	(6)	$	116

(1) Includes write off of accounts receivable against the allowance for doubtful accounts of $15 related to the northern Wisconsin community newspapers and shoppers publications sold in 2012, and the addition of $361 related to the NewsChannel 5 Network, LLC purchase in 2012.

(2) Includes write off of accounts receivable against the allowance for doubtful accounts of $1,105 related to IPC Print Services, Inc.

(3) Deductions from the allowance for doubtful accounts equal accounts receivable written off, less recoveries, against the allowance.

(4) Includes allowance for doubtful accounts of $1,105 as of December 26, 2010 and $1,067 as of December 27, 2009, related to accounts receivable of IPC Print Services, Inc. Fully reserved accounts receivable were excluded from the asset sale.

(5) Includes state net operating loss and tax credit carryforwards related to the northern Wisconsin community newspapers and shoppers publications sold in 2012.

(6) Deductions from the valuation allowances on state net operating loss and tax credit carryforwards equal expired, utilized or re-valued state net operating loss and tax credit carryforwards.

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GOODWILL, BROADCAST LICENSES AND OTHER INTANGIBLE ASSETS (Details) (USD $) In Thousands, unless otherwise specified	3 Months Ended		12 Months Ended
	Dec. 30, 2012	Dec. 25, 2011	Dec. 30, 2012	Dec. 25, 2011	Dec. 26, 2010
Finite-Lived Intangibles [Abstract]
Significant adverse changes in value of assets			$ 0
Amortization expense			1,776	1,567	1,932
Period of estimation of amortization expense	5 years		5 years
Estimated amortization expense for 2013	3,102		3,102
Estimated amortization expense for 2014	3,008		3,008
Estimated amortization expense for 2015	2,999		2,999
Estimated amortization expense for 2016	2,999		2,999
Estimated amortization expense for 2017	2,999		2,999
Gross carrying amount, accumulated amortization and net carrying amount of the major classes of definite-lived intangible assets [Abstract]
Gross Carrying Amount	86,075	46,826	86,075	46,826
Accumulated Amortization	(23,341)	(25,426)	(23,341)	(25,426)
Net Carrying Amount	62,734	21,400	62,734	21,400
Write off of intangible assets			390	21
Broadcast Licenses [Abstract]
Net carrying value of broadcast licenses	129,566	81,547	129,566	81,547
Number of television broadcast licenses that were impaired			2	3	0
Number of radio broadcast licenses that were impaired			2		0
Estimated fair value	79,866	81,547	79,866	81,547
Non-cash impairment charge	1,681	879	1,681	879	0
Goodwill impairment				0	0
Goodwill [Abstract]
Goodwill related to the sale of a business			(923)	(428)
Goodwill related to the purchase of a business			118,071
Goodwill	371,703	254,555	371,703	254,555	254,983
Accumulated impairment losses	(245,885)	(245,885)	(245,885)	(245,885)	(245,885)
Goodwill, balance	125,818	8,670	125,818	8,670	9,098
Publishing [Member]
Broadcast Licenses [Abstract]
Non-cash impairment charge			0	0	0
Goodwill [Abstract]
Goodwill related to the sale of a business			(923)	(428)
Goodwill related to the purchase of a business			0
Goodwill	19,656	20,579	19,656	20,579	21,007
Accumulated impairment losses	(16,722)	(16,722)	(16,722)	(16,722)	(16,722)
Goodwill, balance	2,934	3,857	2,934	3,857	4,285
Broadcasting [Member]
Broadcast Licenses [Abstract]
Net carrying value of broadcast licenses	129,566	81,547	129,566	81,547
Non-cash impairment charge			1,681	879	0
Goodwill [Abstract]
Goodwill related to the sale of a business			0	0
Goodwill related to the purchase of a business			118,071
Goodwill	352,047	233,976	352,047	233,976	233,976
Accumulated impairment losses	(229,163)	(229,163)	(229,163)	(229,163)	(229,163)
Goodwill, balance	122,884	4,813	122,884	4,813	4,813
Television [Member]
Broadcast Licenses [Abstract]
Non-cash impairment charge	952
Radio [Member]
Broadcast Licenses [Abstract]
Non-cash impairment charge	729
Minimum [Member]
Finite-Lived Intangibles [Abstract]
Amortization period			5 years
Maximum [Member]
Finite-Lived Intangibles [Abstract]
Amortization period			25 years
Network Affiliation Agreements [Member]
Finite-Lived Intangibles [Abstract]
Amortization period			25 years
Gross carrying amount, accumulated amortization and net carrying amount of the major classes of definite-lived intangible assets [Abstract]
Gross Carrying Amount	70,430	26,930	70,430	26,930
Accumulated Amortization	(9,499)	(8,129)	(9,499)	(8,129)
Net Carrying Amount	60,931	18,801	60,931	18,801
Weighted average amortization period [Abstract]
Weighted average amortization period			25 years
Customer Lists [Member]
Gross carrying amount, accumulated amortization and net carrying amount of the major classes of definite-lived intangible assets [Abstract]
Gross Carrying Amount	4,209	5,952	4,209	5,952
Accumulated Amortization	(3,583)	(4,862)	(3,583)	(4,862)
Net Carrying Amount	626	1,090	626	1,090
Weighted average amortization period [Abstract]
Weighted average amortization period			9 years
Customer Lists [Member] | Minimum [Member]
Finite-Lived Intangibles [Abstract]
Amortization period			5 years
Customer Lists [Member] | Maximum [Member]
Finite-Lived Intangibles [Abstract]
Amortization period			15 years
Non-compete Agreements [Member]
Gross carrying amount, accumulated amortization and net carrying amount of the major classes of definite-lived intangible assets [Abstract]
Gross Carrying Amount	8,710	10,120	8,710	10,120
Accumulated Amortization	(8,701)	(10,095)	(8,701)	(10,095)
Net Carrying Amount	9	25	9	25
Weighted average amortization period [Abstract]
Weighted average amortization period			5 years
Other [Member]
Gross carrying amount, accumulated amortization and net carrying amount of the major classes of definite-lived intangible assets [Abstract]
Gross Carrying Amount	2,726	3,824	2,726	3,824
Accumulated Amortization	(1,558)	(2,340)	(1,558)	(2,340)
Net Carrying Amount	$ 1,168	$ 1,484	$ 1,168	$ 1,484
Weighted average amortization period [Abstract]
Weighted average amortization period			16 years
Trade Names [Member]
Finite-Lived Intangibles [Abstract]
Amortization period			25 years

XML

SIGNIFICANT ACCOUNTING POLICIES, Earnings Per Share, Diluted (Details) (USD $) In Thousands, except Share data, unless otherwise specified	3 Months Ended								12 Months Ended
	Dec. 30, 2012	Sep. 23, 2012	Jun. 24, 2012	Mar. 25, 2012	Dec. 25, 2011	Sep. 25, 2011	Jun. 26, 2011	Mar. 27, 2011	Dec. 30, 2012	Dec. 25, 2011	Dec. 26, 2010
Earnings Per Share, Diluted, by Common Class, Including Two Class Method [Line Items]
Antidilutive securities excluded from computation of earnings per share (in shares)									615,000	657,000
Numerator for diluted net earnings per share:
Dividends on class A and B common stock									$ 0	$ 0	$ 0
Net earnings									30,701	18,862	30,056
Denominator for diluted net earnings per share:
Weighted average shares outstanding (in shares)									50,091,000	51,088,000	50,789,000
Diluted earnings per share:
Net earnings (in dollars per share)	$ 0.30	$ 0.14	$ 0.13	$ 0.05	$ 0.14	$ 0.07	$ 0.10	$ 0.05	$ 0.61	$ 0.37	$ 0.59
Class C common stock equivalents (in shares)									0
Conversion of class C shares (in shares)									3,264,000
Continuing Operations [Member]
Numerator for diluted net earnings per share:
Total undistributed earnings									30,701	18,546	26,634
Diluted earnings per share:
Net earnings (in dollars per share)									$ 0.61	$ 0.36	$ 0.52
Discontinued Operations [Member]
Numerator for diluted net earnings per share:
Total undistributed earnings									$ 0	$ 316	$ 3,422
Diluted earnings per share:
Net earnings (in dollars per share)									$ 0	$ 0.01	$ 0.07
Class A [Member]
Diluted earnings per share:
Ratio of class C shares convertible into Class A under option one									1.363970
Number of Class A shares resulting from conversion of class C shares under option one (in shares)									4,451,998
Ratio of class C shares convertible under option two									0.248243
Number of shares resulting from conversion of class C shares under option two (in shares)									810,000
Class B [Member]
Diluted earnings per share:
Ratio of class C shares convertible under option two									1.115727
Number of shares resulting from conversion of class C shares under option two (in shares)									3,642,000

XML

CONSOLIDATED STATEMENTS OF OPERATIONS (Parenthetical) (USD $) In Thousands, unless otherwise specified	12 Months Ended
	Dec. 30, 2012	Dec. 25, 2011	Dec. 26, 2010
CONSOLIDATED STATEMENTS OF OPERATIONS [Abstract]
Income tax provision (benefit) applied from discontinued operations	$ 0	$ 221	$ 2,320

XML

CONSOLIDATED STATEMENTS OF CASH FLOWS (USD $) In Thousands, unless otherwise specified	12 Months Ended
	Dec. 30, 2012	Dec. 25, 2011	Dec. 26, 2010
Cash flow from operating activities:
Net earnings	$ 33,325	$ 22,186	$ 34,381
Less earnings from discontinued operations	0	341	3,703
Earnings from continuing operations	33,325	21,845	30,678
Adjustments for non-cash items:
Depreciation expenses	21,074	21,764	22,697
Amortization	1,776	1,567	1,932
Provision for doubtful accounts	535	665	545
Deferred income taxes	16,843	11,871	8,604
Non-cash stock-based compensation	2,028	1,618	1,657
Curtailment gains for defined benefit pension plans	0	0	(1,109)
Net (gain) loss from disposal of assets	428	(586)	86
Impairment of broadcast licenses	1,681	879	0
Impairment of long-lived assets	493	0	1,802
Net changes in operating assets and liabilities, excluding effect of sales and acquisitions:
Receivables	(1,983)	(2,381)	2,172
Inventories	(1,178)	(731)	146
Accounts payable	5,880	(2,379)	1,361
Other assets and liabilities	(3,240)	(8,598)	1,248
NET CASH PROVIDED BY OPERATING ACTIVITIES	77,662	45,534	71,819
Cash flow from investing activities:
Capital expenditures for property and equipment	(12,736)	(10,661)	(9,391)
Proceeds from sales of assets	1,244	210	793
Proceeds from sale of businesses	2,904	1,574	14,044
Insurance proceeds for tower collapse and replacement	0	0	728
Acquisition of businesses	(231,728)	0	0
NET CASH PROVIDED BY (USED FOR) INVESTING ACTIVITIES	(240,316)	(8,877)	6,174
Cash flow from financing activities:
Payments of financing costs	(4,583)	0	(3,338)
Proceeds from long-term notes payable to banks	349,955	94,409	88,983
Payments on long-term notes payable to banks	(161,165)	(127,674)	(165,788)
Payments on unsecured subordinated notes payable	(9,664)
Principal payments under capital lease obligations	(258)	(343)	(319)
Proceeds from issuance of common stock, net	245	295	272
Income tax benefits from vesting of restricted stock	330	464	451
Redemption of common stock, net	(3,910)	(4,010)	0
Purchase of noncontrolling interest	(2,038)	0	0
Payment of cash equivalent of accrued dividends	(6,246)	0	0
NET CASH PROVIDED BY (USED FOR) FINANCING ACTIVITIES	162,666	(36,859)	(79,739)
Cash flow from discontinued operations:
Net operating activities	0	(259)	1,069
Net investing activities	0	823	(636)
NET CASH PROVIDED BY DISCONTINUED OPERATIONS	0	564	433
NET INCREASE (DECREASE) IN CASH AND CASH EQUIVALENTS	12	362	(1,313)
Cash and cash equivalents:
Beginning of year	2,418	2,056	3,369
End of year	2,430	2,418	2,056
SUPPLEMENTAL CASH FLOW INFORMATION
Cash paid for income taxes	4,317	7,710	8,110
Cash paid for interest	$ 1,521	$ 1,709	$ 2,088

XML

SIGNIFICANT ACCOUNTING POLICIES (Policies)

12 Months Ended

Dec. 30, 2012

Organization Consolidation And Presentation Of Financial Statements Disclosure And Significant Accounting Policies [Abstract]

Basis of presentation and consolidation

Basis of presentation and consolidation—We report on a 52-53 week fiscal year ending on the last Sunday of December in each year. In addition, we have four quarterly reporting periods, each consisting of thirteen weeks and ending on a Sunday, provided that once every six years the fourth quarterly reporting period will be fourteen weeks. The fourth quarterly reporting period in our 2012 fiscal year consists of fourteen weeks.

The consolidated financial statements include the accounts of Journal Communications, Inc. and its wholly owned subsidiaries. In 2012, we purchased the remaining noncontrolling interest associated with a variable interest entity (VIE) for which we were the primary beneficiary in accordance with U.S. generally accepted accounting principles and pursuant to the rules and regulations of the Securities and Exchange Commission. All significant intercompany balances and transactions have been eliminated.

The gain on the sale of NorthStar Print Group Inc.'s (NorthStar) real estate holdings, the operations of PrimeNet Marketing Services (PrimeNet), our former direct marketing services business, and IPC Print Services, Inc. (IPC), our former printing services business, have been reflected as discontinued operations in our consolidated statements of operations.

Use of estimates

Use of estimates—The preparation of financial statements in conformity with accounting principles generally accepted in the United States requires management to make estimates and assumptions that affect the amounts reported in the financial statements and accompanying notes. Actual results could differ from those estimates.

Revenue recognition

Revenue recognition—Our principal sources of revenue are the sale of airtime on television and radio stations, the sale of advertising in newspapers and the sale of newspapers to individual subscribers and distributors. In addition, we sell advertising on our newspaper, television and radio websites and derive revenue from other online activities. Advertising revenue is recognized in the publishing and broadcasting businesses when advertisements are published, aired or displayed, or when related advertising services are rendered. Newspaper advertising contracts, which generally have a term of one year or less, may provide rebates or discounts based upon the volume of advertising purchased during the terms of the contracts. Estimated rebates and discounts are recorded as a reduction of revenue in the period the advertisement is displayed. This requires us to make certain estimates regarding future advertising volumes. Estimates are based on various factors including historical experience and advertising sales trends. These estimates are revised as necessary based on actual volumes realized. Circulation revenue is recognized on a pro-rata basis over the term of the newspaper subscription or when the newspaper is delivered to the customer. Amounts we receive from customers in advance of revenue recognition are deferred as liabilities. Deferred revenue to be earned more than one year from the balance sheet date is included in other long-term liabilities in the consolidated balance sheets.

Printing revenue from external customers as well as third-party distribution revenue is recognized when the product is delivered in accordance with the customers' instructions.

We also derive revenues from retransmission of our broadcast programs by Multichannel Video Programming Distributors (MVPDs). Retransmission revenues from MVPDs are recognized based on average monthly subscriber counts and contractual rates over the terms of the agreements.

Multiple-deliverable revenue arrangements

Multiple-deliverable revenue arrangements— Our broadcast business sells airtime on television and radio stations and online advertising bundled arrangements, where multiple products are involved. Significant deliverables within these arrangements include advertising on television and radio stations and advertising placed on various company websites, each of which are considered separate units of accounting. Our daily newspaper sells print and online advertising in bundled arrangements, where multiple products are involved. Significant deliverables within these arrangements include advertising in the printed daily newspaper and advertising placed on various company websites, each of which are considered separate units of accounting. There were no significant changes in units of accounting, the allocation process or the pattern and timing of revenue recognition upon adoption of the amended guidance related to revenue recognition for arrangements with multiple deliverables.

Shipping and handling costs

Shipping and handling costs—Shipping and handling costs, including postage, billed to customers are included in revenue and the related costs are included in operating costs and expenses.

Advertising expense

Advertising expense—We expense our advertising costs as incurred. Advertising expense totaled $7,533, $7,000 and $6,692 in 2012, 2011 and 2010, respectively.

Interest expense

Interest expense—All interest incurred during the years ended December 30, 2012, December 25, 2011 and December 26, 2010 was expensed.

Income taxes

Income taxes—Deferred taxes are provided for the net tax effects of temporary differences between the carrying amounts of assets and liabilities for financial reporting purposes and the amounts for income tax purposes. Valuation allowances are established when management determines that it is more likely than not that some portion or all of a deferred tax asset will not be realized.

We recognize an uncertain tax position when it is more likely than not to be sustained upon examination by taxing authorities and we measure the tax benefit as the largest amount of benefit, determined on a cumulative probability basis, which is more likely than not to be realized upon ultimate settlement.

Fair values

Fair values—The carrying amount of cash and cash equivalents, receivables, accounts payable, accrued severance and barter programming assets and liabilities approximates fair value as of December 30, 2012 and December 25, 2011.

Cash equivalents

Cash equivalents—Cash equivalents are highly liquid investments with maturities of three months or less when purchased. Cash equivalents are stated at cost, which approximates market value.

Receivables, net

Receivables, net—Our non-interest bearing accounts receivable arise primarily from the sale of advertising, commercial printing, commercial distribution and the retransmission of our television programs by MVPDs. We record accounts receivable at original invoice amounts. The accounts receivable balance is reduced by an estimated allowance for doubtful accounts. We evaluate the collectability of our accounts receivable based on a combination of factors. We specifically review historical write-off activity by market, large customer concentrations, customer creditworthiness and changes in our customer payment patterns and terms when evaluating the adequacy of the allowance for doubtful accounts. In circumstances where we are aware of a specific customer's inability to meet its financial obligations, we record a specific reserve to reduce the amounts recorded to what we believe will be collected. For all other customers, we recognize allowances for bad debts based on historical experience of bad debts as a percent of accounts receivable for each business unit. We write off uncollectible accounts against the allowance for doubtful accounts after collection efforts have been exhausted. The allowance for doubtful accounts at December 30, 2012 and December 25, 2011 was $2,468 and $1,870, respectively.

Concentration of credit risk

Concentration of credit risk—Generally, credit is extended based upon an evaluation of the customer's financial position, and advance payment is not required. Credit losses are provided for in the financial statements and have been within management's expectations. Given the current economic environment, credit losses may increase in the future.

Inventories

Inventories—Inventories are stated at the lower of cost (first in, first out method) or market. A summary of inventories follows:

	2012			2011
December 30 and December 25
Paper and supplies	$	2,950		$	1,778
Work in process		84			33
Less obsolescence reserve		(90	)		(45	)
Inventories, net	$	2,944		$	1,766

Television programming

Television programming—We have agreements with distributors for the rights to television programming over contract periods, which generally run for one to five years. Each contract is recorded as an asset and a liability at an amount equal to its gross contractual commitment when the license period begins and the program is available for its first showing. The portion of program contracts that become payable within one year is reflected as a current liability in the accompanying consolidated balance sheets. The rights to program materials are carried at the lower of unamortized cost or estimated net realizable value or in the case of programming obtained by an acquisition, at estimated fair value. The cost for the rights of first-run and sports programming are recorded as the episodes and games are broadcast. We do not record an asset and liability for such rights when the license period begins because the programming is not available for broadcast. Certain of our agreements require us to provide barter advertising time to our distributors. Barter advertising revenue and expense was $5,698, $4,990 and $4,552 in 2012, 2011 and 2010, respectively.

Property and equipment

Property and equipment—Property and equipment are recorded at cost. Depreciation of property and equipment is provided, using the straight-line method, over the estimated useful lives, which are as follows:

	Years
Building and land improvements	10
Buildings	30
Newspaper printing presses	25
Broadcasting equipment	5-20
Other printing presses	10
Other	3-10

Depreciation expense totaled $21,074, $21,764 and $22,697 in 2012, 2011 and 2010, respectively.

Capital leases

Capital leases—We charge amortization expense of assets recorded under capital leases to depreciation expense in our consolidated statements of operations and accumulated depreciation in our consolidated balance sheets. At December 30, 2012 we recorded $1,834 for capital leases in equipment, $1,683 in accumulated depreciation, $54 in current portion of long-term liabilities and $113 in other long-term liabilities in our consolidated balance sheet. At December 25, 2011 we recorded $1,884 for capital leases in equipment, $1,525 in accumulated depreciation, $258 in current portion of long-term liabilities and $166 in other long-term liabilities in our consolidated balance sheet.

Intangible assets

Intangible assets—Indefinite-lived intangible assets, which consist of broadcast licenses and goodwill, are reviewed for impairment at least annually or more frequently if impairment indicators are present. We continue to amortize definite-lived intangible assets on a straight-line basis over periods of five to 25 years. The costs incurred to renew or extend the term of our broadcast licenses and certain customer relationships are expensed as incurred. See Note 9, "Goodwill, Broadcast Licenses and Other Intangible Assets," for additional disclosures on our intangible assets.

Notes receivable

Notes receivable — We received a $450 secured note resulting from the sale of two radio stations in Boise, Idaho in September 2009. Interest-only payments were due monthly and the principal balance of the note was due on September 25, 2014. Principal payments totaling $50 were received in 2011 and 2010. At December 25, 2011, the note receivable was $400 and reported in other assets in the condensed consolidated balance sheets. In the third quarter of 2012, the remaining balance was paid.

In consideration for the sale of the Clearwater, Florida-based operations of PrimeNet in February 2010, we received a $700 promissory note repayable over four years and a $147 working capital note repayable over three years. At the time of the sale, we recorded receivables of $587 and $129, respectively, representing the fair value of the notes discounted at 6.785% and 9.08%, respectively. At December 25, 2011, the notes receivables balances were $433 and $51, respectively, and reported in receivables, net in the consolidated balance sheets. In 2012, both notes were paid in full.

In partial consideration for the sale of certain publishing assets of Journal Community Publishing Groups, Inc. in December 2012, we received a $772 promissory note bearing interest at 3% and repayable over three years. At the time of the sale, we recorded a $738 receivable representing the estimated fair value of the note discounted at 6.25%. These fair value measurements fall within Level 2 of the fair value hierarchy.

Interest income and the unamortized discount on our notes receivable are recorded using the effective interest method.

Impairment of long-lived assets

Impairment of long-lived assets—Property and equipment and other definite-lived intangible assets are reviewed for impairment whenever events or changes in circumstances indicate that the carrying amount may not be recoverable. If an asset is considered impaired, a charge is recognized for the difference between the fair value and carrying value of the asset or group of assets. Such analyses necessarily involve significant judgment. In 2012, we recorded property impairment charges of $368 and $125 at our broadcasting segment and publishing segment, respectively, representing the excess of indicated fair value over the carrying value of the assets held for sale. Fair value was determined pursuant to a broker's opinion of the value based upon similar assets in an inactive market. This fair value measurement is considered a level 2 measurement under the fair value hierarchy. We recorded a property impairment loss of $1,802 at our broadcasting segment in 2010 representing the excess of indicated fair value over the carrying value of assets held for sale. Fair value was determined pursuant to a broker's opinion of value based upon similar assets in an inactive market. This fair value measurement is considered a level 2 measurement under the fair value hierarchy. The charges are reported in selling and administrative expenses in the consolidated statement of operations.

Share Repurchases

Share Repurchases—Shares repurchased under our July 2011 share repurchase program remain authorized but unissued. The cost of the class A shares repurchased under the program was greater than par value and we recorded a charge to par value and additional paid in capital. On August 13, 2012, we repurchased all 3,264 outstanding shares of our class C common stock, including all rights associated with such shares of class C common stock.

Earnings per share

Earnings per share

Basic

For all periods during which our class C common stock was issued and outstanding (see Note 2 "Notes Payable" regarding the Company's repurchase of all 3,264 shares of the Company's class C common stock issued and outstanding), we apply the two-class method for calculating and presenting our basic earnings per share. As noted in the FASB's guidance for earnings per share, the two-class method is an earnings allocation formula that determines earnings per share for each class of common stock according to dividends declared (or accumulated) and participation rights in undistributed earnings. Under that method:

(a) Income (loss) from continuing operations ("net earnings (loss)") is reduced by the amount of dividends declared in the current period for each class of stock and by the contractual amount of dividends that must be paid or accrued during the current period.

(b) The remaining earnings, which may include earnings from discontinued operations ("undistributed earnings"), are allocated to each class of common stock to the extent that each class of stock may share in earnings if all of the earnings for the period were distributed.

(c) The remaining losses ("undistributed losses") are allocated to the class A and B common stock. Undistributed losses are not allocated to the class C common stock and non-vested restricted stock because the class C common stock and the non-vested restricted stock are not contractually obligated to share in the losses. Losses from discontinued operations are allocated to class A and B common stock and may be allocated to class C common stock and non-vested restricted stock if there is undistributed earnings after deducting earnings distributed to class C common stock from income from continuing operations.

(d) The total earnings (loss) allocated to each class of common stock are then divided by the number of weighted average shares outstanding of the class of common stock to which the earnings (loss) are allocated to determine the earnings (loss) per share for that class of common stock.

(e) Basic earnings (loss) per share data are presented for class A and B common stock in the aggregate and for class C common stock. The basic earnings (loss) per share for class A and B common stock are the same; hence, these classes are reported together.

In applying the two-class method, we have determined that undistributed earnings should be allocated equally on a per share basis among each class of common stock due to the lack of any contractual participation rights of any class to those undistributed earnings. Undistributed losses are allocated to only the class A and B common stock for the reason stated above.

The following table sets forth the computation of basic earnings per share under the two-class method:

	2012			2011		2010
Numerator for basic earnings from continuing operations for each class of common stock and non-vested restricted stock:
Earnings form continuing operations	$	33,325		$	21,845	$	30,678
Less dividends:
Class A and B		-			-		-
Minimum class C		1,146			1,854		1,854
Non-vested restricted stock		-			-		-
Total undistributed earnings from continuing operations	$	32,179		$	19,991	$	28,824
Undistributed earnings from continuing operations:
Class A and B	$	30,701		$	18,546	$	26,634
Class C		1,261			1,186		1,712
Non-vested restricted stock		217			259		478
Total undistributed earnings from continuing operations	$	32,179		$	19,991	$	28,824
Numerator for basic earnings from continuing operations per class A and B common stock:
Minimum dividends on class A and B	$	-		$	-	$	-
Class A and B undistributed earnings		30,701			18,546		26,634
Numerator for basic earnings from continuing operations per class A and B common stock	$	30,701		$	18,546	$	26,634
Numerator for basic earnings from continuing operations per class C common stock:
Minimum dividends on class C	$	1,146		$	1,854	$	1,854
Class C undistributed earnings		1,261			1,186		1,712
Numerator for basic earnings from continuing operations per class C common stock	$	2,407		$	3,040	$	3,566
Denominator for basic earnings from continuing operations for each class of common stock:
Weighted average shares outstanding -
Class A and B		50,091			51,088		50,789
Class C		3,264	(1)		3,264		3,264
Basic earnings per share from continuing operations:
Class A and B	$	0.61		$	0.36	$	0.52
Class C	$	0.74		$	0.93	$	1.09

(1) The weighted average number of shares is calculated only for the period of time which the class C common stock was outstandingduring the period, not the entire period.

	2012			2011		2010
Numerator for basic earnings from discontinued operations for each class of common stock and non-vested restricted stock:
Total undistributed earnings from discontinued operations	$	-		$	341	$	3,703
Undistributed earnings from discontinued operations:
Class A and B	$	-			316	$	3,422
Class C		-			20	$	220
Non-vested restricted stock		-			5	$	61
Total undistributed earnings from discontinued operations	$	-			341	$	3,703
Denominator for basic earnings from discontinued operations for each class of common stock:
Weighted average shares outstanding -
Class A and B		50,091			51,088		50,789
Class C		3,264	(1)		3,264		3,264
Basic earnings per share from discontinued operations:
Class A and B	$	-		$	0.01	$	0.07
Class C	$	-		$	0.01	$	0.07
Numerator for basic net earnings for each class of common stock:
Net earnings	$	33,325		$	22,186	$	34,381
Less dividends:
Class A and B		-			-		-
Minimum class C		1,146			1,854		1,854
Non-vested restricted stock		-			-		-
Total undistributed net earnings	$	32,179		$	20,332	$	32,527
Undistributed net earnings:
Class A and B	$	30,701		$	18,862	$	30,056
Class C		1,261			1,206		1,932
Non-vested restricted stock		217			264		539
Total undistributed net earnings	$	32,179		$	20,332	$	32,527
Numerator for basic net earnings per class A and B common stock:
Dividends on class A and B	$	-		$	-	$	-
Class A and B undistributed net earnings		30,701			18,862		30,056
Numerator for basic net earnings per class A and B common stock	$	30,701		$	18,862	$	30,056

(1) The weighted average number of shares is calculated only for the period of time which the class C common stock was outstandingduring the period, not the entire period.

	2012			2011		2010
Numerator for basic net earnings per class C common stock:
Minimum dividends on class C	$	1,146		$	1,854	$	1,854
Class C undistributed net earnings		1,261			1,206		1,932
Numerator for basic net earnings per class C common stock	$	2,407		$	3,060	$	3,786
Denominator for basic net earnings for each class of common stock:
Weighted average shares outstanding -
Class A and B		50,091			51,088		50,789
Class C		3,264	(1)		3,264		3,264
Basic net earnings per share:
Class A and B	$	0.61		$	0.37	$	0.59
Class C	$	0.74		$	0.94	$	1.16

(1) The weighted average number of shares is calculated only for the period of time which the class C common stock was outstanding during the period, not the entire period.

Diluted

Diluted earnings per share is computed based upon the assumption that common shares are issued upon exercise of our stock appreciation rights when the exercise price is less than the average market price of our common shares and common shares will be outstanding upon expiration of the vesting periods for our non-vested restricted stock and performance-based restricted stock units. For the year ended December 30, 2012, 615 non-vested restricted class B common shares and performance-based restricted stock units are not included in the computation of diluted earnings per share because they are anti-dilutive. For the year ended December 25, 2011, 657 non-vested restricted class B common shares are not included in the computation of diluted earnings per share because they are anti-dilutive. The class C shares are not converted into class A and B shares because they are anti-dilutive for all periods presented, and therefore are not included in the diluted weighted average shares outstanding.

The following table sets forth the computation of diluted net earnings (loss) per share for class A and B common stock:

	2012		2011		2010
Numerator for diluted net earnings per share:
Dividends on class A and B common stock	$	-	$	-	$	-
Total undistributed earnings from continuing operations		30,701		18,546		26,634
Total undistributed earnings from discontinued operations		-		316		3,422
Net earnings	$	30,701	$	18,862	$	30,056
Denominator for diluted net earnings per share:
Weighted average shares outstanding		50,091		51,088		50,789
Diluted earnings per share:
Continuing operations	$	0.61	$	0.36	$	0.52
Discontinued operations		-		0.01		0.07
Net earnings	$	0.61	$	0.37	$	0.59

Diluted earnings per share for the class C common stock is the same as basic earnings per share for the class C common stock because there are no class C common stock equivalents.

Prior to the repurchase of the class C common stock, each of the 3,264 class C shares outstanding was convertible at any time at the option of the holder into either (i) 1.363970 class A shares (or a total of 4,452 class A shares) or (ii) 0.248243 class A shares (or a total of 810 class A shares) and 1.115727 class B shares (or a total of 3,642 class B shares).

New accounting standards

New accounting standards

In February 2013, the FASB issued guidance related to items reclassified from accumulated other comprehensive income. The new guidance requires either in a single note or parenthetically on the face of the financial statements: (i) the effect of significant amounts reclassified from each component of accumulated other comprehensive income based on its source and (ii) the income statement line items affected by the reclassification. This guidance is effective for fiscal years beginning January 1, 2013 with early adoption permitted. We do not expect the adoption of this guidance to have a material impact on our consolidated financial statements.

In July 2012, the Financial Accounting Standards Board (FASB) issued amended guidance for impairment of indefinite-lived intangible assets. The guidance allows for an option to first assess qualitative factors to determine whether the existence of events or circumstances leads to a determination that it is more likely than not that the fair value of the indefinite-lived intangible asset exceeds its carrying amount. If the qualitative factors lead us to conclude it is more likely than not that the fair value exceeds the carrying value of the indefinite-lived intangible asset, then the fair value does not need to be calculated. This update is effective for annual and interim impairment tests performed for the fiscal years beginning after September 15, 2012, with early adoption permitted. We adopted this guidance in 2012.

In September 2011, the FASB issued amended guidance for goodwill impairment. The guidance simplifies how entities test goodwill for impairment. The new guidance allows an entity to first assess qualitative factors to determine whether it is necessary to perform the two-step quantitative goodwill impairment test. Under these amendments, an entity will be required to perform the two-step impairment test only if it concludes that the fair value of a reporting unit is more likely than not, less than its carrying value. This guidance is effective for fiscal years, and interim periods within those years, beginning after December 15, 2011, with early adoption permitted. We adopted this guidance in the first quarter of 2012.

In June 2011, the FASB issued amended guidance for comprehensive income. The guidance requires an entity to present the total of comprehensive income, the components of net income and the components of other comprehensive income either in a single continuous statement of comprehensive income or in two separate but consecutive statements. The new guidance eliminates the option to present the components of other comprehensive income as part of the statement of shareholders' equity. Subsequently, in December 2011, the FASB issued its final standard to defer the new requirement to present components of reclassifications of other comprehensive income on the face of the income statement. The other requirements contained in the new standard on comprehensive income must still be adopted by the FASB. This guidance is effective for fiscal years, and interim periods within those years, beginning after December 15, 2011, with early adoption permitted. We adopted this guidance in the first quarter of 2012 and opted to present the total of comprehensive income in two separate but consecutive statements.

In May 2011, the FASB issued amended guidance for fair value measurement and disclosure requirements between U.S. generally accepted accounting principles and International Financial Reporting Standards (IFRS). The new guidance includes amendments to clarify the definition of fair value and ensure that the fair value measurement and disclosure requirements are similar between U.S. generally accepted accounting principles and IFRS. The guidance also changes certain fair value measurement principles and enhances the disclosure requirements particularly for level 3 fair value measurements. This guidance is effective for fiscal years, and interim periods within those years, beginning after December 15, 2011. We adopted this guidance in the first quarter of 2012.

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SEGMENT REPORTING (Tables)

12 Months Ended

Dec. 30, 2012

SEGMENT REPORTING [Abstract]

Summary of revenue, operating earnings (loss), depreciation and amortization and capital expenditures and identifiable total assets

Our business segments are based on the organizational structure used by management for making operating and investment decisions and for assessing performance. Our reportable business segments are: (i) broadcasting; (ii); publishing and (iii) corporate. Our broadcasting segment consists of 34 radio stations and 15 television stations in 12 states. Our publishing segment consists of the Milwaukee Journal Sentinel, which serves as the only major daily newspaper for the Milwaukee metropolitan area, and several community newspapers and shoppers in Wisconsin. Our corporate segment consists of unallocated corporate expenses and revenue eliminations.

With the reporting of PrimeNet as a discontinued operation during 2010, the previously reported "Other" segment was changed to "Corporate" and now reflects unallocated costs primarily related to corporate executive management and corporate governance. The prior year was revised to conform to this change. With the reporting of IPC as a discontinued operation, we no longer have a printing services segment.

	2012			2011			2010
Revenue
Broadcasting	$	235,627		$	186,080		$	194,365
Publishing		164,947			170,976			182,799
Corporate eliminations		(532	)		(263	)		(405	)
	$	400,042		$	356,793		$	376,759
Operating earnings (loss)
Broadcasting	$	56,228		$	31,001		$	43,559
Publishing		11,622			15,901			18,222
Corporate		(7,858	)		(7,120	)		(8,757	)
	$	59,992		$	39,782		$	53,024
Broadcast license impairment
Broadcasting	$	1,681		$	879		$	-
Publishing		-			-			-
Corporate		-			-			-
	$	1,681		$	879		$	-
Depreciation and amortization
Broadcasting	$	13,013		$	12,297		$	12,747
Publishing		9,170			10,412			11,382
Corporate		667			622			500
	$	22,850		$	23,331		$	24,629
Capital expenditures
Broadcasting	$	10,750		$	8,531		$	7,770
Publishing		1,240			987			1,068
Corporate		746			1,143			553
	$	12,736		$	10,661		$	9,391

	2012			2011
Identifiable total assets
Broadcasting	$	523,179		$	262,216
Publishing		104,162			113,236
Corporate & discontinued operations		(1,538	)		42,273
	$	625,803		$	417,725

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ACQUISITIONS AND DIVESTITURES

12 Months Ended

Dec. 30, 2012

ACQUISITIONS AND DIVESTITURES [Abstract]

ACQUISITIONS AND DIVESTITURES

10    ACQUISITIONS AND DIVESTITURES

2012

On June 25, 2012, Journal Broadcast Group, Inc. and Journal Broadcast Corporation, our broadcasting business, completed the asset purchase of KHTT-FM and KBEZ-FM in Tulsa, Oklahoma from Renda Broadcasting Corporation for $11,728 in cash. Subsequent to this purchase, we now own five radio stations in Tulsa, Oklahoma.

The goodwill of $1,947 arising from the acquisition is attributable to the synergies expected from aligning our radio stations in a cluster within the Tulsa, Oklahoma market. The purchase of KTTT-FM and KBEZ-FM builds our existing Tulsa, Oklahoma cluster, and creates a strong group that will continue to serve our listeners, customers and the entire Tulsa, Oklahoma community, and enhances our scale in this existing market. This clustering strategy has allowed us to target our stations' formats and sales efforts to better serve advertisers and listeners as well as leverage operating expenses to maximize the performance of each station and the cluster.

The estimated fair values of identifiable assets acquired and liabilities assumed for KHTT-FM and KBEZ-FM at the acquisition date are as follows:

	KHTT-FM and KBEZ-FM
	Tulsa, OK
Property and equipment	$	181
Goodwill		1,947
Broadcast licenses		9,600
Total purchase price	$	11,728

The KHTT-FM and KBEZ-FM broadcast licenses expire in 2013 and collectively have a weighted average period of 0.7 years before the next renewal. We expect to renew both licenses without issue. The goodwill and broadcast licenses which we acquired are not subject to amortization for financial reporting purposes, but are expected to be entirely deductible for income tax purposes.

The acquisition was accounted for using the purchase method. The operating results and cash flows of the acquired business are included in our consolidated financial statements from March 26, 2012, the date we entered into the local marketing agreement with Renda Broadcasting Corporation.

We had an affiliation agreement with ACE TV, Inc. for the rights under a local marketing agreement for WACY-TV in Appleton, Wisconsin and to purchase certain assets of ACE TV, Inc. including the broadcast license of WACY-TV for a purchase price of $2,038. On October 22, 2012, we closed on the purchase of the remaining assets used in the operation of WACY-TV from ACE TV, Inc. See Note 9 "Variable Interest Entity."

On December 3, 2012, Journal Broadcast Group, Inc. completed the sale of certain assets (including the FCC licenses) of WKTI-AM in Knoxville, Tennessee for $65. We recorded a pre-tax gain on the sale, net of transaction expenses, of $48.

On December 3, 2012, Journal Community Publishing Group, Inc., our community newspapers and shoppers business, completed the sale of Hodag Buyers' Guide, North Star Journal, Merrill Foto News, Wausau Buyers' Guide, Stevens Point Buyers' Guide, Wood County Buyers' Guide, Waupaca Buyers' Guide, Waupaca County Post East, Waupaca County Post West, Clintonville Shoppers' Guide, New London Buyers' Guide, Silent Sports, Waupacanow.com, Merrillfotonews.com, Starjournalnow.com, Silentsports.net, Wibuyersguide.com and a single copy distribution network based in Rhinelander, WI for $1,200 in cash and promissory note of $772. We recorded a pre-tax loss on the sale, net of transaction expenses, of $319.

On December 6, 2012, Journal Broadcast Group, Inc. completed the acquisition of NewsChannel 5 Network, LLC (NewsChannel 5) from a subsidiary of Landmark Media Enterprises, LLC. The purchase price was $220,000 including a working capital adjustment of $5,000.

NewsChannel 5 contributed revenue of $2,917 and earnings from continuing operations before taxes of $1,730 for the period from December 7, 2012 to December 30, 2012. The following unaudited pro forma information presents the combined results of operations of Journal and NewsChannel 5 as if the acquisition of NewsChannel 5 had occurred on December 27, 2010:

	2012		2011
Pro Forma Results of Operations
Revenue	$	439,732	$	399,313
Earnings per share from continuing operations, diluted	$	0.71	$	0.47

The unaudited pro forma results reflect certain adjustments related to the acquisition, such as increased depreciation and amortization expense resulting from the fair valuation of assets acquired and the impact of financing the acquisition. The pro forma results exclude any planned revenue or cost synergies or other effects of the planned integration of NewsChannel 5. The pro forma results are for comparative purposes only and may not be indicative of the results that would have occurred if we had completed this acquisition as of the periods shown above or the results that will be attained in the future.

The goodwill of $116,124 arising from the acquisition is attributable to significant tax deductions we expect to realize related to the step up in basis of certain assets that will provide cash tax savings and, to a lesser extent, certain revenue and cost synergies expected to be realized.

The estimated provisional fair values of identifiable assets acquired and liabilities assumed for NewsChannel 5 at the acquisition date are as follows:

	NewsChannel 5
Tangible assets	$	13,383
Long-term assets, other		48
Working capital		6,845
Network affiliation agreements		43,500
FCC licenses		40,100
Goodwill		116,124
Total purchase price	$	220,000

We have completed the majority of our business combination accounting as of December 30, 2012 and expect to complete the remainder in the first quarter of 2013. As of December 30, 2012, we are pending final agreement with the seller on the valuation of working capital. Final determination of the values of assets acquired and liabilities assumed may result in adjustments to the values presented above and a corresponding adjustment to goodwill.

The WTVF broadcast license expires in 2013. We expect to renew the license without issue. The goodwill and broadcast licenses which we acquired are not subject to amortization for financial reporting purposes, but are expected to be entirely deductible for income tax purposes.

Acquisition related costs with respect to the foregoing transactions were $2,152 and $3,145 for the fourth quarter ended and four quarters ended December 30, 2012, respectively, and are included in selling and administrative expenses in the condensed consolidated statements of operations.

The acquisition has been accounted for under the acquisition method of accounting which requires the total purchase price to be allocated to the assets acquired and liabilities assumed based on their estimated fair values. The excess purchase price over the amounts assigned to tangible and intangible assets acquired and liabilities assumed is recognized as goodwill. The operating results and cash flows of the acquired business are included in our consolidated financial statements from December 7, 2012, the effective date we acquired control of NewsChannel 5.

On December 20, 2012, Journal Broadcast Corporation, a subsidiary of Journal Communications, Inc., reached an agreement to purchase WNOX-FM in the Knoxville, TN market from Oak Ridge FM, Inc. The transaction is subject to FCC approval.

2011

In June 2011, Journal Community Publishing Group, Inc., our community newspapers and shoppers business, completed the sale of Pelican Press and Pelican Press Marketplace businesses, which operated in Sarasota, Florida, for $502. We recorded a pre-tax gain on the sale, net of transaction expenses, of $245. In August 2011, Journal Community Publishing Group, Inc. completed the sale of the remaining Florida-based community newspapers and shoppers businesses for aggregate consideration of $757. The publications and web-sites included Florida Mariner, Clay Today, Clay County Leader, Ponte Vedra Recorder, St. Augustine Underground, First Coast Register and Car Connection, and were distributed in the Clay, St. John's and Duval, Florida counties. We recorded a total pre-tax gain on the sales, net of transaction expenses, of $253. These sales allow us to focus our efforts on operating our Wisconsin-based community newspapers and shoppers businesses.

2010

There were no acquisitions or sales of businesses during 2010.