10-Q

UNITED STATES SECURITIES AND EXCHANGE COMMISSION

Washington, D.C. 20549

FORM 10-Q

[X] QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE

SECURITIES EXCHANGE ACT OF 1934

For The Quarterly Period Ended December 25, 2016

OR

[  ] TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE

SECURITIES EXCHANGE ACT OF 1934

Commission File Number 1-6227

LEE ENTERPRISES, INCORPORATED

(Exact name of Registrant as specified in its Charter)

Delaware	42-0823980
(State or other jurisdiction of incorporation or organization)	(I.R.S. Employer Identification No.)

201 N. Harrison Street, Suite 600, Davenport, Iowa 52801

(Address of principal executive offices)

(563) 383-2100

(Registrant's telephone number, including area code)

Indicate by check mark whether the Registrant (1) has filed all reports required to be filed by Section 13 or 15(d) of the 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 [  ]

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 (232.405 of this chapter) during the preceding 12 months (or for such shorter period that the Registrant was required to submit and post such files). Yes [X]     No [  ]

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

Large accelerated filer	[  ]	Accelerated filer	[X]
Non-accelerated filer	[ ] (Do not check if a smaller reporting company)	Smaller reporting company	[  ]

Indicate by check mark whether the Registrant is a shell company (as defined in Rule 12b-2 of the Exchange Act).

Yes [  ]     No [X]

Indicate by check mark whether the Registrant has filed all documents and reports required to be filed by Sections 12, 13 or 15(d) of the Securities Exchange Act of 1934 subsequent to the distribution of securities under a plan confirmed by a court.  Yes [X]     No [  ]

As of January 31, 2017, 56,580,750 shares of Common Stock of the Registrant were outstanding.

Table Of Contents			PAGE
FORWARD LOOKING STATEMENTS			1
PART I	FINANCIAL INFORMATION		2
	Item 1.	Financial Statements (Unaudited)	2
		Consolidated Balance Sheets - December 25, 2016 and September 25, 2016	2
		Consolidated Statements of Operations and Comprehensive Operations - 13 weeks ended December 25, 2016 and December 27, 2015	4
		Consolidated Statements of Cash Flows - 13 weeks ended December 25, 2016 and December 27, 2015	5
		Notes to Consolidated Financial Statements	6
	Item 2.	Management's Discussion and Analysis of Financial Condition and Results of Operations	18
	Item 3.	Quantitative and Qualitative Disclosures About Market Risk	28
	Item 4.	Controls and Procedures	29
PART II	OTHER INFORMATION		29
	Item 1.	Legal Proceedings	29
	Item 6.	Exhibits	29
SIGNATURES			29

References to “we”, “our”, “us” and the like throughout this document refer to Lee Enterprises, Incorporated (the "Company"). References to "2017", "2016" and the like refer to the fiscal years ended the last Sunday in September.

FORWARD-LOOKING STATEMENTS

The Private Securities Litigation Reform Act of 1995 provides a “safe harbor” for forward-looking statements. This report contains information that may be deemed forward-looking that is based largely on our current expectations, and is subject to certain risks, trends and uncertainties that could cause actual results to differ materially from those anticipated. Among such risks, trends and other uncertainties, which in some instances are beyond our control, are:

•Our ability to generate cash flows and maintain liquidity sufficient to service our debt;

•Our ability to comply with the financial covenants in our credit facilities;

•Our ability to refinance our debt as it comes due;

•That the warrants issued in our refinancing will not be exercised;

•The impact and duration of adverse conditions in certain aspects of the economy affecting our business;

•Changes in advertising and subscription demand;

•Changes in technology that impact our ability to deliver digital advertising;

•Potential changes in newsprint, other commodities and energy costs;

•Interest rates;

•Labor costs;

•Legislative and regulatory rulings;

•Our ability to achieve planned expense reductions;

•Our ability to maintain employee and customer relationships;

•Our ability to manage increased capital costs;

•Our ability to maintain our listing status on the NYSE;

•Competition; and

•Other risks detailed from time to time in our publicly filed documents.

Any statements that are not statements of historical fact (including statements containing the words “may”, “will”, “would”, “could”, “believes”, “expects”, “anticipates”, “intends”, “plans”, “projects”, “considers” and similar expressions) generally should be considered forward-looking statements. Readers are cautioned not to place undue reliance on such forward-looking statements, which are made as of the date of this report. We do not undertake to publicly update or revise our forward-looking statements, except as required by law.

1

PART I

FINANCIAL INFORMATION

Item 1.       Financial Statements

LEE ENTERPRISES, INCORPORATED

CONSOLIDATED BALANCE SHEETS

(Unaudited)

(Thousands of Dollars)	December 25 2016	September 25 2016
ASSETS
Current assets:
Cash and cash equivalents	20,100	16,984
Accounts receivable, net	56,871	51,334
Inventories	4,709	4,252
Other	4,439	4,683
Total current assets	86,119	77,253
Investments:
Associated companies	30,172	29,716
Other	10,309	9,488
Total investments	40,481	39,204
Property and equipment:
Land and improvements	20,973	21,028
Buildings and improvements	173,555	174,164
Equipment	279,139	279,770
Construction in process	1,316	823
	474,983	475,785
Less accumulated depreciation	349,890	347,223
Property and equipment, net	125,093	128,562
Goodwill	243,729	243,729
Other intangible assets, net	152,075	158,354
Medical plan assets, net	14,439	14,063
Other	1,637	1,690
Total assets	663,573	662,855

The accompanying Notes are an integral part of the Consolidated Financial Statements.

2

(Thousands of Dollars and Shares, Except Per Share Data)	December 25 2016		September 25 2016
LIABILITIES AND EQUITY
Current liabilities:
Current maturities of long-term debt	25,000		25,070
Accounts payable	16,840		18,143
Compensation and other accrued liabilities	19,368		23,884
Accrued interest	11,797		2,895
Income taxes payable	657		665
Unearned revenue	27,866		28,361
Total current liabilities	101,528		99,018
Long-term debt, net of current maturities	549,044		565,826
Pension obligations	54,531		55,148
Postretirement and postemployment benefit obligations	10,704		10,717
Deferred income taxes	43,766		38,308
Income taxes payable	5,500		5,016
Warrants and other	13,608		16,363
Total liabilities	778,681		790,396
Equity (deficit):
Stockholders' equity (deficit):
Serial convertible preferred stock, no par value; authorized 500 shares; none issued	—		—
Common Stock, $0.01 par value; authorized 120,000 shares; issued and outstanding:	566		558
December 25, 2016: 56,574 shares;
September 25, 2016: 55,771 shares
Class B Common Stock, $2 par value; authorized 30,000 shares; none issued	—		—
Additional paid-in capital	249,928		249,740
Accumulated deficit	(343,832	)	(356,005	)
Accumulated other comprehensive loss	(22,724	)	(22,778	)
Total stockholders' deficit	(116,062	)	(128,485	)
Non-controlling interests	954		944
Total deficit	(115,108	)	(127,541	)
Total liabilities and deficit	663,573		662,855

The accompanying Notes are an integral part of the Consolidated Financial Statements.

3

LEE ENTERPRISES, INCORPORATED

CONSOLIDATED STATEMENTS OF INCOME AND COMPREHENSIVE INCOME

(Unaudited)

	13 Weeks Ended
(Thousands of Dollars, Except Per Common Share Data)	December 25 2016		December 27 2015
Operating revenue:
Advertising and marketing services	93,035		105,637
Subscription	48,888		50,430
Other	12,066		12,338
Total operating revenue	153,989		168,405
Operating expenses:
Compensation	55,056		58,665
Newsprint and ink	6,893		6,685
Other operating expenses	52,777		58,869
Depreciation	4,071		4,327
Amortization of intangible assets	6,309		6,616
Loss (gain) on sales of assets, net	68		(971	)
Workforce adjustments	65		604
Total operating expenses	125,239		134,795
Equity in earnings of associated companies	2,689		2,799
Operating income	31,439		36,409
Non-operating income (expense):
Financial income	75		76
Interest expense	(14,952	)	(17,142	)
Debt financing and administrative costs	(951	)	(1,333	)
Other, net	3,095		645
Total non-operating expense, net	(12,733	)	(17,754	)
Income before income taxes	18,706		18,655
Income tax expense	6,266		7,147
Net income	12,440		11,508
Net income attributable to non-controlling interests	(267	)	(271	)
Income attributable to Lee Enterprises, Incorporated	12,173		11,237
Other comprehensive income (loss), net of income taxes	55		(43	)
Comprehensive income attributable to Lee Enterprises, Incorporated	12,228		11,194
Earnings per common share:
Basic:	0.23		0.21
Diluted:	0.22		0.21

The accompanying Notes are an integral part of the Consolidated Financial Statements.

4

LEE ENTERPRISES, INCORPORATED

CONSOLIDATED STATEMENTS OF CASH FLOWS

(Unaudited)            

	13 Weeks Ended
(Thousands of Dollars)	December 25 2016		December 27 2015
Cash provided by operating activities:
Net income	12,440		11,508
Adjustments to reconcile net income to net cash provided by operating activities:
Depreciation and amortization	10,380		10,943
Net (gain) loss on sales of assets	68		(971	)
Stock compensation expense	524		570
Distributions greater than earnings of MNI	114		567
Deferred income tax expense	5,420		6,572
Debt financing and administrative costs	951		1,333
Gain on extinguishment of debt	—		(525	)
Pension contributions	—		(744	)
Changes in operating assets and liabilities:
Increase in receivables	(5,537	)	(7,681	)
Increase in inventories and other	(212	)	(291	)
Increase in accounts payable, compensation and other accrued liabilities and unearned revenue	2,553		162
Decrease in pension, postretirement and postemployment benefit obligations	(913	)	(1,565	)
Change in income taxes receivable or payable	476		588
Other, net	(3,376	)	603
Net cash provided by operating activities	22,888		21,069
Cash provided by (required for) investing activities:
Purchases of property and equipment	(1,090	)	(1,470	)
Proceeds from sales of assets	450		2,614
Distributions greater than earnings of TNI	(570	)	(137	)
Other, net	(488	)	—
Net cash provided by (required for) investing activities	(1,698	)	1,007
Cash provided by (required for) financing activities:
Proceeds from long-term debt	—		5,000
Payments on long-term debt	(17,750	)	(26,351	)
Debt financing costs paid	—		(44	)
Common stock transactions, net	(324	)	(2	)
Net cash required for financing activities	(18,074	)	(21,397	)
Net increase in cash and cash equivalents	3,116		679
Cash and cash equivalents:
Beginning of period	16,984		11,134
End of period	20,100		11,813

The accompanying Notes are an integral part of the Consolidated Financial Statements.

5

LEE ENTERPRISES, INCORPORATED

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS

(Unaudited)

1 BASIS OF PRESENTATION

The accompanying unaudited, interim, Consolidated Financial Statements included herein have been prepared pursuant to the rules and regulations of the Securities and Exchange Commission for quarterly reports. In the opinion of management, these financial statements contain all adjustments (consisting of only normal recurring items) necessary to present fairly the financial position of Lee Enterprises, Incorporated and subsidiaries (the “Company”) as of December 25, 2016 and their results of operations and cash flows for the periods presented. The Consolidated Financial Statements should be read in conjunction with the Consolidated Financial Statements and Notes thereto included in the Company's 2016 Annual Report on Form 10-K.

Because of seasonal and other factors, the results of operations for the 13 weeks ended December 25, 2016 are not necessarily indicative of the results to be expected for the full year.

References to “we”, “our”, “us” and the like throughout the Consolidated Financial Statements refer to the Company. References to “2017”, “2016” and the like refer to the fiscal years ended the last Sunday in September.

The Consolidated Financial Statements include our accounts and those of our subsidiaries, all of which are wholly-owned, except for our 50% interest in TNI Partners (“TNI”), 50% interest in Madison Newspapers, Inc. (“MNI”) and 82.5% interest in TownNews.com.

Investments in TNI and MNI are accounted for using the equity method and are reported at cost, plus our share of undistributed earnings since acquisition less, for TNI, amortization of intangible assets.

In August 2014, the Financial Accounting Standards Board ("FASB") issued a new going concern standard. The new standard provides guidance on how management evaluates and discloses the Company's ability to continue as a going concern for a look-forward period of one year from the financial statement issuance date. We adopted the new standard in 2017, as required. The adoption of this standard did not impact our Consolidated Financial Statements, taken as a whole.

2    INVESTMENTS IN ASSOCIATED COMPANIES

TNI Partners

In Tucson, Arizona, TNI, acting as agent for our subsidiary, Star Publishing Company (“Star Publishing”), and Citizen Publishing Company (“Citizen”), a subsidiary of Gannett Co. Inc., is responsible for printing, delivery, advertising, and subscription activities of the Arizona Daily Star as well as the related digital platforms and specialty publications. TNI collects all receipts and income and pays substantially all operating expenses incident to the partnership's operations and publication of the newspapers and other media.

Income or loss of TNI (before income taxes) is allocated equally to Star Publishing and Citizen.

Summarized results of TNI are as follows:

	13 Weeks Ended
(Thousands of Dollars)	December 25 2016	December 27 2015
Operating revenue	13,314	14,782
Operating expenses	9,999	11,341
Operating income	3,315	3,441
Company's 50% share of operating income	1,658	1,721
Less amortization of intangible assets	105	105
Equity in earnings of TNI	1,553	1,616

6

TNI makes weekly distributions of its earnings and for the 13 weeks ended December 25, 2016 and December 27, 2015 we received $983,000 and $1,479,000 in distributions, respectively.

Star Publishing's 50% share of TNI depreciation and certain general and administrative expenses (income) associated with its share of the operation and administration of TNI are reported as operating expenses (benefit) in our Consolidated Statements of Income and Comprehensive Income. These amounts totaled $142,000and $(119,000)in the 13 weeks endedDecember 25, 2016andDecember 27, 2015, respectively.

Annual amortization of intangible assets is estimated to be $418,000 for the 52 or 53 weeks ending December 2017, 2018, and 2019. Annual amortization of intangible assets is estimated to be $105,000 for the 52 weeks ending December 2020.

Madison Newspapers, Inc.

We have a 50% ownership interest in MNI, which publishes daily and Sunday newspapers, and other publications in Madison, Wisconsin, and other Wisconsin locations, and operates their related digital platforms. Net income or loss of MNI (after income taxes) is allocated equally to us and The Capital Times Company (“TCT”). MNI conducts its business under the trade name Capital Newspapers.

Summarized results of MNI are as follows:

	13 Weeks Ended
(Thousands of Dollars)	December 25 2016	December 27 2015
Operating revenue	17,042	17,789
Operating expenses, excluding workforce adjustments, depreciation and amortization	13,405	13,612
Depreciation and amortization	349	410
Operating income	3,288	3,767
Net income	2,272	2,358
Equity in earnings of MNI	1,136	1,183

MNI makes quarterly distributions of its earnings and in the 13 weeks ended December 25, 2016 and December 27, 2015 we received dividends of $1,250,000 and $1,750,000, respectively.

3 GOODWILL AND OTHER INTANGIBLE ASSETS

Changes in the carrying amount of goodwill are as follows:

	13 Weeks Ended
(Thousands of Dollars)	December 25 2016
Goodwill, gross amount	1,532,458
Accumulated impairment losses	(1,288,729	)
Goodwill, beginning of period	243,729
Goodwill, end of period	243,729

7

Identified intangible assets consist of the following:

(Thousands of Dollars)	December 25 2016	September 25 2016
Nonamortized intangible assets:
Mastheads	23,644	23,644
Amortizable intangible assets:
Customer and newspaper subscriber lists	687,212	687,182
Less accumulated amortization	558,781	552,472
	128,431	134,710
Noncompete and consulting agreements	28,524	28,524
Less accumulated amortization	28,524	28,524
	—	—
Other intangible assets, net	152,075	158,354

Annual amortization of intangible assets for the 52 or 53 weeks ended December 2017 to December 2021 is estimated to be $22,908,000, $16,653,000, $15,624,000, $15,163,000 and $13,251,000, respectively.

4 DEBT

On March 31, 2014, we completed a comprehensive refinancing of our debt (the"2014 Refinancing"), which included the following:

• $400,000,000 aggregate principal amount of 9.5% Senior Secured Notes (the “Notes”), pursuant to an Indenture dated as of March 31, 2014 (the “Indenture”).

• $250,000,000 first lien term loan (the "1^st Lien Term Loan") and $40,000,000 revolving facility (the "Revolving Facility") under a First Lien Credit Agreement dated as of March 31, 2014 (together the “1^st Lien Credit Facility”).

• $150,000,000 second lien term loan under a Second Lien Loan Agreement dated as of March 31, 2014 (the “2^nd Lien Term Loan”).

Debt is summarized as follows:

					Interest Rates(%)
(Thousands of Dollars)	December 25 2016		September 26 2016		December 25 2016
Revolving Facility	—		—		5.65
1st Lien Term Loan	83,984		101,304		7.25
Notes	385,000		385,000		9.50
2nd Lien Term Loan	130,433		130,863		12.00
	599,417		617,167
Unamortized debt issue costs	(25,373	)	(26,271	)
Less current maturities of long-term debt	25,000		25,070
Total long-term debt	549,044		565,826

At December 25, 2016, our weighted average cost of debt, excluding amortization of debt financing costs, is 9.7%.

Aggregate minimum required maturities of debt excluding amounts required to be paid from excess cash flow requirements at December 25, 2016 total $18,750,000 for the remainder of 2017, $25,000,000 in 2018, $40,234,000 in 2019, zero in 2020, zero in 2021 and $515,433,000 thereafter.

8

In April 2015, the FASB issued a new standard for the presentation of debt issuance costs. The new standard will streamline the balance sheet presentation of debt related valuations. Debt issuance costs were previously recognized as deferred charges and presented as an asset while debt discounts and premiums are treated as adjustments to the related debt. Under the new standard, debt issuance costs are now recognized as reductions to the related debt. The adoption of this standard reclassified certain amounts within our Consolidated Balance Sheets. We adopted the new standard in 2017, as required, and adopted this standard retrospectively. As a result, we have reclassified $26,271,000 of Other long-term assets to a reduction of long-term debt, net of current maturities in the September 25, 2016 Consolidated Balance Sheet.

Notes

The Notes are senior secured obligations of the Company and mature on March 15, 2022. At December 25, 2016, the principal balance of the Notes totaled $385,000,000.

Interest

The Notes require payment of interest semiannually on March 15 and September 15 of each year, at a fixed annual rate of 9.5%.  

Redemption

We may redeem some, or all, of the principal amount of the Notes at any time. Prior to March 15, 2018, we may redeem the Notes subject to a make whole provision for the interest through March 15, 2018. On or after March 15, 2018, we may redeem the Notes as follows:

Period Beginning	Percentage of Principal Amount
March 15, 2018	104.75
March 15, 2019	102.38
March 15, 2020	100.00

We may redeem up to 35% of the Notes prior to March 15, 2017 at 109.5% of the principal amount using the proceeds of certain future equity offerings.

If we sell certain of our assets or experience specific kinds of changes of control, we must, subject to certain exceptions, offer to purchase the Notes at 101% of the principal amount. Any redemption of the Notes must also satisfy any accrued and unpaid interest thereon.

We may repurchase Notes in the open market at any time. In the 13 weeks ended December 27, 2015, we purchased $5,000,000 principal amount of Notes in privately negotiated transactions. The transaction resulted in a gain on extinguishment of $525,000, which is recorded in Other, net in the Consolidated Statements of Income and Comprehensive Income.

Covenants and Other Matters

The Indenture and the 1^st Lien Credit Facility contains restrictive covenants as discussed more fully below. However, certain of these covenants will cease to apply if the Notes are rated investment grade by either Moody’s Investors Service, Inc. or Standard & Poor’s Ratings Group and there is no default or event of default under the Indenture.

1^st Lien Credit Facility

The 1^st Lien Credit Facility consists of the $250,000,000 1^st Lien Term Loan that matures in March 2019 and the $40,000,000 Revolving Facility that matures in December 2018. The 1^st Lien Credit Facility documents the primary terms of the 1^st Lien Term Loan and the Revolving Facility. The Revolving Facility may be used for working capital and general corporate purposes (including letters of credit). At December 25, 2016, after consideration of letters of credit, we have approximately $33,318,000 available for future use under the Revolving Facility.

9

Interest

Interest on the 1^st Lien Term Loan, which has a principal balance of $83,984,000 at December 25, 2016, accrues, at our option, at either (A) LIBOR plus 6.25% (with a LIBOR floor of 1.0%) or (B) 5.25% plus the higher of (i) the prime rate at the time, (ii) the federal funds rate plus 0.5%, or (iii) one month LIBOR plus 1.0% (with a floor of 2.0%). Interest is payable quarterly.

The 1^st Lien Term Loan was funded with an original issue discount of 2.0%, or $5,000,000, which is being amortized as debt financing and administration costs over the life of the 1^st Lien Term Loan.

Interest on the Revolving Facility, which has a principal balance of zero at December 25, 2016, accrues, at our option, at either (A) LIBOR plus 5.5%, or (B) 4.5% plus the higher of (i) the prime rate at the time, (ii) the federal funds rate plus 0.5%, or (iii) one month LIBOR plus 1.0%.

Principal Payments

Quarterly principal payments of $6,250,000 are required under the 1^st Lien Term Loan, with additional payments required to be made based on 90% of excess cash flow of Lee Legacy ("Lee Legacy Excess Cash Flow"), as defined, or from proceeds of asset sales, which are not reinvested, as defined, from our subsidiaries other than Pulitzer Inc. ("Pulitzer") and its subsidiaries (collectively, the "Pulitzer Subsidiaries"). For excess cash flow calculation purposes Lee Legacy constitutes the business of the Company, including MNI, but excluding Pulitzer and TNI. We may voluntarily prepay principal amounts outstanding or reduce commitments under the 1^st Lien Credit Facility at any time without premium or penalty, upon proper notice and subject to certain limitations as to minimum amounts of prepayments.

Quarterly, the Company is required to prepare a Lee Legacy Excess Cash Flow calculation, which is generally determined as the cash earnings of our subsidiaries other than the Pulitzer Subsidiaries and is adjusted for changes in working capital, capital spending, pension contributions, debt principal payments and income tax payments or refunds. Any excess cash flow as calculated is required to be paid to the 1^st Lien lenders 45 days after the end of the quarter.For the 13 weeks ended December 25, 2016, the required Lee Legacy Excess Cash Flow payment was $0.

2017 payments made, or required to be made for the remainder of the year, under the 1^st Lien Term Loan are summarized as follows:

	13 Weeks Ended			13 Weeks Ending
(Thousands of Dollars)	December 25 2016	March 26 2017	June 25 2017	September 24 2017
Mandatory	6,250	6,250	6,250	6,250
Voluntary	11,000	—	—	—
Excess cash flow payment	70	—	—	—
	17,320	6,250	6,250	6,250

Covenants and Other Matters

The 1^st Lien Credit Facility requires that we comply with certain affirmative and negative covenants customary for financing of this nature, including a maximum total leverage ratio, which is only applicable to the Revolving Facility. 

The 1^st Lien Credit Facility restricts us from paying dividends on our Common Stock. This restriction no longer applies if Lee Legacy leverage is below 3.25x before and after such payments. Further, the 1^st Lien Credit Facility restricts or limits, among other things, subject to certain exceptions, the ability of the Company and its subsidiaries to: (i) incur indebtedness, (ii) enter into mergers, acquisitions and asset sales, (iii) incur or create liens and (iv) enter into transactions with certain affiliates. The 1^st Lien Credit Facility contains various representations and warranties and may be terminated upon occurrence of certain events of default. The 1^st

10

Lien Credit Facility also contains cross-default provisions tied to the terms of each of the Indenture and 2^nd Lien Term Loan.

2^nd Lien Term Loan

The 2^nd Lien Term Loan, which has a balance of $130,433,000 at December 25, 2016, bears interest at a fixed annual rate of 12.0%, payable quarterly, and matures in December 2022.

Principal Payments

There are no scheduled mandatory amortization payments required under the 2^nd Lien Term Loan.

Quarterly, we are required to prepare a calculation of excess cash flow of the Pulitzer Subsidiaries ("Pulitzer Excess Cash Flow"). Pulitzer Excess Cash Flow is generally determined as the cash earnings of the Pulitzer Subsidiaries adjusted for changes in working capital, capital spending, pension contributions, debt principal payments and income tax payments. Pulitzer Excess Cash Flow also includes a deduction for interest costs incurred under the 2^nd Lien Term Loan.

Under the 2^nd Lien Term Loan, subject to certain other conditions, Pulitzer Excess Cash Flow must be used, (a) prior to March 31, 2017, to make an offer to the 2^nd Lien Lenders to prepay amounts under the 2^nd Lien Term Loan at par (which offer the 2^nd Lien Lenders may accept or reject; if rejected we may use the Pulitzer Excess Cash Flow to prepay amounts under the 1^st Lien Credit Facility or repurchase Notes in the open market), and (b) after March 31, 2017, to pay such amounts under the 2^nd Lien Term Loan at par. Pulitzer Excess Cash Flow payments are required to be paid 45 days after the end of the quarter.

Pulitzer Excess Cash Flow and the related payments on the 2^nd Lien Term Loan for the previous four quarters are as follows:

For the Period Ending (Thousands of Dollars)	Pulitzer Excess Cash Flow	Payment Date	Payment Amount (not rejected)
December 27, 2015	2,864	Q2 2016	1,867
March 27, 2016	2,730	Q3 2016	525
June 26, 2016	1,583	Q4 2016	299
September 25, 2016	—	Q1 2017	—

For the 13 weeks ended December 25, 2016, Pulitzer Excess Cash Flow totaled $930,000, which will be offered to the 2^nd Lien lenders in February 2017.

Subject to certain other conditions in the 2^nd Lien Term Loan, the balance of the 2^nd Lien Term Loan will be repaid at par from proceeds from asset sales by the Pulitzer Subsidiaries that are not reinvested. For the 13 weeks ended December 25, 2016 and December 27, 2015, we repaid $430,000 and $2,300,000, respectively, on the 2^nd Lien Term loan, at par, with net proceeds from the sale of Pulitzer assets.

Voluntary payments under the 2^nd Lien Term Loan are subject to call premiums as follows:

Period Beginning	Percentage of Principal Amount
March 31, 2014	112
March 31, 2017	106
March 31, 2018	103
March 31, 2019	100

Covenants and Other Matters

The 2^nd Lien Term Loan requires that we comply with certain affirmative and negative covenants customary for financing of this nature, including the negative covenants under the 1^st Lien Credit Facility discussed above. The 2^nd Lien Term Loan contains various representations and warranties and may be terminated upon

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occurrence of certain events of default. The 2^nd Lien Term Loan also contains cross-default provisions tied to the terms of the Indenture and 1^st Lien Credit Facility.

In connection with the 2^nd Lien Term Loan, we entered into a Warrant Agreement dated as of March 31, 2014 (the “Warrant Agreement”). Under the Warrant Agreement, certain affiliates or designees of the 2^nd Lien Lenders received on March 31, 2014 their pro rata share of warrants to purchase, in cash, an initial aggregate of 6,000,000 shares of Common Stock, subject to adjustment pursuant to anti-dilution provisions (the “Warrants”). The Warrants represent, when fully exercised, approximately 10.1% of shares of Common Stock outstanding at March 30, 2014 on a fully diluted basis. The exercise price of the Warrants is $4.19 per share.

The Warrant Agreement contains a cash settlement provision in the event of a change of control prior to March 31, 2018 as well as other provisions requiring the Warrants to be measured at fair value and included in other liabilities in our Consolidated Balance Sheets. We remeasure the fair value of the liability each reporting period, with changes reported in other, net non-operating income (expense). The initial fair value of the Warrants was $16,930,000. See Note 9.

In connection with the issuance of the Warrants, we entered into a Registration Rights Agreement dated as of March 31, 2014 (the “Registration Rights Agreement”). The Registration Rights Agreement requires, among other matters, that we use our commercially reasonable efforts to maintain the effectiveness for certain specified periods of a shelf registration statement related to the shares of Common Stock to be issued upon exercise of the Warrants.

Security

The Notes and the 1^st Lien Credit Facility are fully and unconditionally guaranteed on a joint and several first-priority basis by each of the Company's material domestic subsidiaries, excluding MNI, the Pulitzer Subsidiaries and TNI (the "Lee Legacy Assignors"), pursuant to a first lien guarantee and collateral agreement dated as of March 31, 2014 (the "1^st Lien Guarantee and Collateral Agreement").

The Notes, the 1^st Lien Credit Facility and the subsidiary guarantees are secured, subject to certain exceptions, priorities and limitations, by perfected security interests in all property and assets, including certain real estate, of the Lee Legacy Assignors, other than the capital stock of MNI and any property and assets of MNI (the “Lee Legacy Collateral”), on a first-priority basis, equally and ratably with all of the Lee Legacy Assignors' existing and future obligations. The Lee Legacy Collateral includes, among other things, equipment, inventory, accounts receivables, depository accounts, intellectual property and certain of their other tangible and intangible assets.

Also, the Notes and the 1^st Lien Credit Facility are secured, subject to certain exceptions, priorities and limitations in the various agreements, by first-priority security interests in the capital stock of, and other equity interests owned by, the Lee Legacy Assignors (excluding the capital stock of MNI). The Notes and 1^st Lien Credit Facility are subject to a Pari Passu Intercreditor Agreement dated March 31, 2014.

The Notes, the 1^st Lien Credit Facility and the subsidiary guarantees are also secured, subject to permitted liens, by a second-priority security interest in the property and assets of the Pulitzer Subsidiaries that become subsidiary guarantors (the "Pulitzer Assignors") other than assets of or used in the operations or business of TNI (collectively, the “Pulitzer Collateral”). In June 2015 the Pulitzer Assignors became a party to the 1^st Lien Guarantee and Collateral Agreement on a second lien basis.

Also, the Notes and the 1^st Lien Credit Facility are secured, subject to certain exceptions, priorities, and limitations in the various agreements, by second-priority security interests in the capital stock of, and other equity interests in, the Pulitzer Assignors and Star Publishing’s interest in TNI.

The 2^nd Lien Term Loan is fully and unconditionally guaranteed on a joint and several first-priority basis by the Pulitzer Assignors, pursuant to a Second Lien Guarantee and Collateral Agreement dated as of March 31, 2014 (the “2^nd Lien Guarantee and Collateral Agreement”) among the Pulitzer Assignors and the 2^nd Lien collateral agent.

Under the 2^nd Lien Guarantee and Collateral Agreement, the Pulitzer Assignors have granted (i) first-priority security interests, subject to certain priorities and limitations in the various agreements, in the Pulitzer Collateral and (ii) have granted first-priority lien mortgages or deeds of trust covering certain real estate, as collateral for

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the payment and performance of their obligations under the 2^nd Lien Term Loan.

Also, under the 2^nd Lien Guarantee and Collateral Agreement, the Lee Legacy Assignors have granted (i) second-priority security interests, subject to certain priorities and limitations in the various agreements, in the Lee Legacy Collateral, and (ii) have granted second-priority lien mortgages or deeds of trust covering certain real estate, as collateral for the payment and performance of their obligations under the 2^nd Lien Term Loan. Assets of, or used in the operations or business of, MNI are excluded.

The rights of each of the collateral agents with respect to the Lee Legacy Collateral and the Pulitzer Collateral are subject to customary intercreditor and intercompany agreements.

Other

In connection with the 2014 Refinancing, we capitalized $37,819,000 of debt financing costs. Amortization of debt financing costs totaled $898,000 in the 13 weeks ended December 25, 2016. Amortization of such costs is estimated to total $4,142,000 in 2017, $4,223,000 in 2018, $4,050,000 in 2019, $4,079,000 in 2020 and $4,269,000 in 2021. At December 25, 2016 ,we have $25,373,000 of unamortized debt financing costs recorded as a reduction of Long-term debt in our Consolidated Balance Sheets.

Liquidity

At December 25, 2016, after consideration of letters of credit, we have approximately $33,318,000 available for future use under our Revolving Facility. Including cash, our liquidity at December 25, 2016 totals $53,418,000. This liquidity amount excludes any future cash flows. We expect all interest and principal payments due in the next twelve months will be satisfied by existing cash and our cash flows, which will allow us to maintain an adequate level of liquidity. The Warrants, if and when exercised, would provide additional liquidity in an amount up to $25,140,000 subject to a reduction for any amounts the Company may elect to use to repay our 1^st Lien Term Loan and/or the Notes.

Final maturities of our debt have been extended to dates from December 2018 through December 2022.

There are numerous potential consequences under the Notes, 1^st Lien Credit Facility and 2^nd Lien Term Loan, if an event of default, as defined, occurs and is not remedied. Many of those consequences are beyond our control. The occurrence of one or more events of default would give rise to the right of the applicable lender(s) to exercise their remedies under the Notes, 1^st Lien Credit Facility and 2^nd Lien Term Loan, respectively, including, without limitation, the right to accelerate all outstanding debt and take actions authorized in such circumstances under applicable collateral security documents.

Our ability to operate as a going concern is dependent on our ability to remain in compliance with debt covenants and to repay, refinance or amend our debt agreements as they become due. The Notes, 1^st Lien Credit Facility and 2^nd Lien Term Loan have only limited affirmative covenants with which we are required to maintain compliance. We are in compliance with our debt covenants at December 25, 2016.

5 PENSION, POSTRETIREMENT AND POSTEMPLOYMENT DEFINED BENEFIT PLANS

We have several noncontributory defined benefit pension plans that together cover selected employees. Benefits under the plans were generally based on salary and years of service. Effective in 2012, substantially all benefits are frozen and only a small amount of additional benefits are being accrued. Our liability and related expense for benefits under the plans are recorded over the service period of employees based upon annual actuarial calculations. Plan funding strategies are influenced by government regulations. Plan assets consist primarily of domestic and foreign corporate equity securities, government and corporate bonds, hedge fund investments and cash.

In addition, we provide retiree medical and life insurance benefits under postretirement plans at several of our operating locations. The level and adjustment of participant contributions vary depending on the specific plan. In addition, St. Louis Post-Dispatch LLC, provides postemployment disability benefits to certain employee groups prior to retirement. Our liability and related expense for benefits under the postretirement plans are recorded over the service period of active employees based upon annual actuarial calculations. We accrue

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postemployment disability benefits when it becomes probable that such benefits will be paid and when sufficient information exists to make reasonable estimates of the amounts to be paid.

We use a fiscal year end measurement date for all of our pension and postretirement medical plan obligations.

The net periodic postretirement cost (benefit) components for our postretirement plans are as follows:

PENSION PLANS	13 Weeks Ended
(Thousands of Dollars)	December 25 2016		December 27 2015
Service cost for benefits earned during the period	21		49
Interest cost on projected benefit obligation	1,349		1,515
Expected return on plan assets	(1,969	)	(2,174	)
Amortization of net loss	736		599
Amortization of prior service benefit	(34	)	(34	)
Pension expense (benefit)	103		(45	)
POSTRETIREMENT MEDICAL PLANS	13 Weeks Ended
(Thousands of Dollars)	December 25 2016		December 27 2015
Service cost for benefits earned during the period	3		16
Interest cost on projected benefit obligation	122		156
Expected return on plan assets	(264	)	(331	)
Amortization of net gain	(237	)	(273	)
Amortization of prior service benefit	(365	)	(365	)
Postretirement medical benefit	(741	)	(797	)

Amortization of net gains (losses) and prior service benefits are recorded as compensation in the Consolidated Statements of Income and Comprehensive Income.

Based on our forecast at December 25, 2016, we do not expect to make contributions to our pension trust and postretirement medical plans for the reminder of 2017.

6 INCOME TAXES

We recorded income tax expense of $6,266,000 related to income before taxes of $18,706,000 for the 13 weeks ended December 25, 2016. For the 13 weeks ended December 27, 2015, we recorded $7,147,000 in income tax expense related to income before taxes of $18,655,000. The effective income tax rates for the 13 weeks ended December 25, 2016 and December 27, 2015 were 33.5% and 38.3%, respectively. The primary differences between these rates and the U.S. federal statutory rate of 35% are due to the effect of state income taxes, non-deductible expenses, adjustments to reserves for uncertain tax positions, including any related interest, and mark-to-market adjustments to value the Warrants.

We file a consolidated federal tax return, as well as combined and separate tax returns in approximately 27 state and local jurisdictions. We have various income tax examinations ongoing which are at different stages of completion, but generally our income tax returns have been audited or closed to audit through 2009. See Note 10 for a discussion of our tax audits.

At September 25, 2016, we had approximately $57,392,000 of state net operating loss tax benefits and a federal net operating loss carryforward of approximately $58,618,000. Due to our federal and state net operating loss carryforwards and based on historical levels of performance, we do not expect to make any significant income tax payments in the current fiscal year.

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7 EARNINGS PER COMMON SHARE

The following table sets forth the computation of basic and diluted earnings per common share:

	13 Weeks Ended
(Thousands of Dollars and Shares, Except Per Share Data)	December 25 2016		December 27 2015
Income attributable to Lee Enterprises, Incorporated:	12,173		11,237
Weighted average common shares	55,935		54,856
Less weighted average restricted Common Stock	(2,407	)	(1,716	)
Basic average common shares	53,528		53,140
Dilutive stock options and restricted Common Stock	1,873		718
Diluted average common shares	55,401		53,858
Earnings per common share:
Basic	0.23		0.21
Diluted	0.22		0.21

For the 13 weeks ended December 25, 2016and December 27, 2015,6,828,000 and 7,684,000 weighted average shares, respectively, were not considered in the computation of diluted earnings per common share because the exercise prices of the related stock options and Warrants were in excess of the fair market value of our Common Stock.

8 STOCK OWNERSHIP PLANS

A summary of stock option activity during the 13 weeks ended December 25, 2016 follows:

(Thousands of Dollars and Shares, Except Per Share Data)	Shares		Weighted Average Exercise Price	Weighted Average Remaining Contractual Term (Years)	Aggregate Intrinsic Value
Outstanding, September 25, 2016	1,698		2.42
Exercised	(214	)	1.52
Cancelled	(42	)	26.85
Outstanding, December 25, 2016	1,442		1.85	4.4	1,522
Exercisable, December 25, 2016	1,442		1.85	4.4	1,522

Restricted Common Stock

The table below summarizes restricted Common Stock activity during the 13 weeks ended December 25, 2016:

(Thousands of Shares, Except Per Share Data)	Shares		Weighted Average Grant Date Fair Value
Outstanding, September 27, 2016	2,462		2.74
Vested	(707	)	3.61
Granted	812		3.35
Cancelled	(2	)	1.53
Outstanding, December 25, 2016	2,565		2.70

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Total unrecognized compensation expense for unvested restricted Common Stock at December 25, 2016 is $4,459,000, which will be recognized over a weighted average period of 1.9 years.

9 FAIR VALUE MEASUREMENTS

We utilize FASB ASC Topic 820, Fair Value Measurements and Disclosures, to measure and report fair value. FASB ASC Topic 820 defines fair value, establishes a framework for measuring fair value and expands disclosures about fair value measurements. FASB ASC Topic 820 establishes a three-level hierarchy of fair value measurements based on whether the inputs to those measurements are observable or unobservable, which consists of the following levels:

Level 1 - Quoted prices for identical instruments in active markets.

Level 2 - Quoted prices for similar instruments in active markets; quoted prices for identical or similar instruments in markets that are not active; and model-derived valuations in which all significant inputs are observable in active markets.

Level 3 - Valuations derived from valuation techniques in which one or more significant inputs are unobservable.

The following methods and assumptions are used to estimate the fair value of each class of financial instruments for which it is practicable to estimate value.

The carrying amounts of cash equivalents, accounts receivable and accounts payable approximate fair value because of the short maturity of those instruments. Investments totaling $6,818,000, including our 17% ownership of the nonvoting common stock of TCT and a private equity investment, are carried at cost. As of December 31, 2016, based on the most recent data available, the approximate fair value of the private equity investment is $8,164,000, which is a level 3 fair value measurement.

The fair value of floating rate debt, which consists of our 1^st Lien Term Loan, is $84,100,000, based on an average of private market price quotations. Our fixed rate debt consists of $385,000,000 principal amount of the Notes and $130,433,000 principal amount under the 2^nd Lien Term Loan. At December 25, 2016, based on private market price quotations the fair values were $405,000,000 and $139,000,000 for the Notes and 2^nd Lien Term Loan, respectively.

As discussed more fully in Note 4, we recorded a liability for the Warrants issued in connection with the Warrant Agreement. The liability was initially measured at its fair value and we remeasure the liability to fair value each reporting period, with changes reported in other non-operating income (expense). The initial fair value of the Warrants was $16,930,000. The fair value of Warrants at December 25, 2016 and September 25, 2016 is $8,665,000and$11,760,000, respectively. Fair value is determined using the Black-Scholes option pricing model. These represent level 2 fair value measurements.

10 COMMITMENTS AND CONTINGENT LIABILITIES

Income Taxes

Commitments exclude unrecognized tax benefits to be recorded in accordance with FASB ASC Topic 740, Income Taxes. We are unable to reasonably estimate the ultimate amount or timing of cash settlements with the respective taxing authorities for such matters. See Note 6.

We file income tax returns with the Internal Revenue Service ("IRS") and various state tax jurisdictions. From time to time, we are subject to routine audits by those agencies and those audits may result in proposed adjustments. We have considered the alternative interpretations that may be assumed by the various taxing agencies, believe our positions taken regarding our filings are valid, and that adequate tax liabilities have been recorded to resolve such matters. However, the actual outcome cannot be determined with certainty and the difference could be material, either positively or negatively, to the Consolidated Statements of Operations and Comprehensive Income (Loss) in the periods in which such matters are ultimately determined. We do not believe the final resolution of such matters will be material to our consolidated financial position or cash flows.

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We have various income tax examinations ongoing and at various stages of completion, but generally our income tax returns have been audited or closed to audit through 2009.

Legal Proceedings

We are involved in a variety of legal actions that arise in the normal course of business. Insurance coverage mitigates potential loss for certain of these matters. While we are unable to predict the ultimate outcome of these legal actions, it is our opinion that the disposition of these matters will not have a material adverse effect on our Consolidated Financial Statements, taken as a whole.

Multiemployer Pension Plans

One of our enterprise's bargaining units withdrew from representation, and as a result we are subject to a future claim from the multiemployer pension plan for a withdrawal liability. The amount and timing of such liability will be dependent on actions taken, or not taken, by the Company and the pension plan, as well as the future investment performance and funding status of the pension plan. Any withdrawal liability determined to be due under this plan will be funded over a period of 20 years.

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Item 2.       Management's Discussion and Analysis of Financial Condition and Results of Operations

The following discussion includes comments and analysis relating to our results of operations and financial condition as of and for the 13 weeks endedDecember 25, 2016. This discussion should be read in conjunction with the Consolidated Financial Statements and related Notes thereto, included herein, and our 2016 Annual Report on Form 10-K.

NON-GAAP FINANCIAL MEASURES

We use non-GAAP financial performance measures for purposes of evaluating our performance and liquidity. Therefore, we believe that each of the non-GAAP measures presented provides useful information to investors by allowing them to view our businesses through the eyes of our management and Board of Directors, facilitating comparison of results across historical periods, and providing a focus on the underlying ongoing operating performance and liquidity of our businesses. The non-GAAP financial measures we use are as follows:

Adjusted EBITDA is a non-GAAP financial performance measure that enhances financial statement users overall understanding of the operating performance of the Company. The measure isolates unusual, infrequent or non-cash transactions from the operating performance of the business. This allows users to easily compare operating performance among various fiscal periods and understand how management measures the performance of the business. This measure also provides users with a benchmark that can be used when forecasting future operating performance of the Company that excludes unusual, nonrecurring or one time transactions. Adjusted EBITDA is also a component of the calculation used by stockholders and analysts to determine the value of our business when using the market approach, which applies a market multiple to financial metrics. It is also a measure used to calculate the leverage ratio of the Company, which is a key financial ratio monitored and used by the Company and its investors. Adjusted EBITDA is defined as net income (loss), plus nonoperating expenses, net, income tax expense (benefit), depreciation, amortization, loss (gain) on sale of assets, impairment charges, workforce adjustment costs, stock compensation and our 50% share of EBITDA from TNI and MNI, minus equity in earnings of TNI and MNI and curtailment gains.

Adjusted Income (Loss) and Adjusted Earnings (Loss) Per Common Share are non-GAAP financial performance measures that we believe offer a useful metric to evaluate overall performance of the Company by providing financial statement users the operating performance of the Company on a per share basis excluding the impact of changes in the warrant valuation as well as unusual and infrequent transactions. It is defined as income (loss) attributable to Lee Enterprises, Incorporated and earnings (loss) per common share adjusted to exclude the impact of the warrant valuation, unusual matters and those of a substantially non-recurring nature.

Cash Costs is a non-GAAP financial performance measure of operating expenses that are settled in cash and is useful to investors in understanding the components of the Company’s cash operating costs. Generally, the Company provides forward-looking guidance of Cash Costs, which can be used by financial statement users to assess the Company's ability to manage and control its operating cost structure. Cash Costs is defined as compensation, newsprint and ink, other operating expenses and certain unusual matters, such as workforce adjustment costs. Depreciation, amortization, impairment charges, other non-cash operating expenses and other unusual matters are excluded. Cash Costs are also presented excluding workforce adjustments, which are paid in cash.

We also present revenue and certain operating expense trends on a Same Property basis which excludes the operating results of the Provo Daily Herald, which was sold in August 2016. Same Property results are useful to investors in understanding the revenue and operating expense trends excluding the impact of changes due to operations no longer owned by the Company.

A table reconciling Adjusted EBITDA to net income (loss), the most directly comparable measure under GAAP, is set forth in Item 2, included herein, under the caption "Reconciliation of Non-GAAP Financial Measures".

Reconciliations of adjusted income (loss) and adjusted earnings (loss) per common share to income (loss) attributable to Lee Enterprises, Incorporated and earnings (loss) per common share, respectively, the most directly comparable measures under GAAP, are set forth in Item 2, included herein, under the caption “Overall Results”.

The subtotals of operating expenses representing cash costs can be found in tables in Item 2, included herein, under the captions “13 Weeks Ended December 25, 2016".

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Same Property trends can be found in tables in Item 2, included herein, under the caption "13 Weeks Ended December 25, 2016"

These non-GAAP financial measures should not be considered in isolation from or as a substitute for the related consolidated GAAP measures, and should be read together with financial information presented on a GAAP basis.

RECONCILIATION OF NON-GAAP FINANCIAL MEASURES

(UNAUDITED)

The table below reconciles the non-GAAP financial performance measure of adjusted EBITDA to net income, the most directly comparable GAAP measure:

	13 Weeks Ended
(Thousands of Dollars)	December 25 2016		December 27 2015
Net Income	12,440		11,508
Adjusted to exclude
Income tax expense	6,266		7,147
Non-operating expenses, net	12,733		17,754
Equity in earnings of TNI and MNI	(2,689	)	(2,799	)
Loss (gain) on sale of assets, net	68		(971	)
Depreciation and amortization	10,380		10,943
Workforce adjustments	65		604
Stock compensation	524		570
Add:
Ownership share of TNI and MNI EBITDA (50%)	3,476		3,809
Adjusted EBITDA	43,263		48,565

CRITICAL ACCOUNTING POLICIES

Our discussion and analysis of results of operations and financial condition are based upon our Consolidated Financial Statements, which have been prepared in accordance with Generally Accepted Accounting Principles ("GAAP"). The preparation of these financial statements requires us to make estimates and judgments that affect the reported amounts of assets, liabilities, revenue and expenses, and related disclosure of contingent assets and liabilities. We evaluate these estimates and judgments on an ongoing basis.

We base our estimates on historical experience and on various other assumptions that are believed to be reasonable under the circumstances, the results of which form the basis for making judgments about the carrying values of assets and liabilities that are not readily apparent from other sources. Actual results may differ from these estimates under different assumptions or conditions.

Our critical accounting policies include the following:

•Goodwill and other intangible assets;

•Pension, postretirement and postemployment benefit plans;

•Income taxes;

•Revenue recognition; and

•Uninsured risks.

Additional information regarding these critical accounting policies can be found under the caption “Management's Discussion and Analysis of Financial Condition and Results of Operations” in our 2016 Annual Report on Form 10-K.

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IMPACT OF RECENTLY ISSUED ACCOUNTING STANDARDS

In August 2016, the Financial Accounting Standards Board ("FASB") issued a new standard to conform the presentation in the statement of cash flows for certain transactions, including cash distribution from equity method investments, among others. The adoption of the new standard is required in 2019. The adoption of this standard will reclassify certain cash receipts within the Consolidation Statements of Cash Flows.

In March 2016, the FASB issued a new standard with improvements to the accounting for employee share-based payments. The new standard simplifies several aspects of the accounting for employee share-based payment transactions, including the accounting for income taxes and statutory tax withholding requirements, as well as classification in the statement of cash flows. The adoption of the new standard is required in 2018. We have not determined the potential effects on the Consolidated Financial Statements.

In February 2016, the FASB issued a new standard for the accounting treatment of leases. The new standard is based on the principle that entities should recognize assets and liabilities arising from leases. The new standard does not significantly change the lessees’ recognition, measurement and presentation of expenses and cash flows from the previous accounting standard. Leases are classified as finance or operating. The new standards primary change is the requirement for entities to recognize a lease liability for payments and a right of use asset representing the right to use the leased asset during the term on operating lease arrangements. Lessees are permitted to make an accounting policy election to not recognize the asset and liability for leases with a term of twelve months or less. Lessors’ accounting under the new standard is largely unchanged from the previous accounting standard. In addition, the new standard expands the disclosure requirements of lease arrangements. Lessees and lessors will use a modified retrospective transition approach, which includes a number of practical expedients. The adoption of this new standard is required in the first quarter of fiscal year 2020 with early adoption permitted. We have not determined the potential effects on the Consolidated Financial Statements.

In May 2014, the FASB issued new accounting requirements for the recognition of revenue from contracts with customers. The new requirements also include additional disclosure about the nature, amount, timing and uncertainty of revenue and cash flows arising from customer contracts, including significant judgments and changes in judgments and assets recognized from costs incurred to obtain or fulfill a contract. The adoption of these requirements is required in 2019. We have not yet determined the potential impact on our Consolidated Financial Statements.

EXECUTIVE OVERVIEW

Lee Enterprises, Incorporated is a leading provider of local news and information, and a major platform for advertising, in the markets we serve, which are located primarily in the Midwest, Mountain West and West regions of the United States. With the exception of St. Louis, Missouri, our 49 daily newspaper markets, across 22 states, are principally midsize or small. Through our print and digital platforms, we reach an overwhelming majority of adults in our markets.

Our products include:

• 46 daily and 34 Sunday newspapers with print and digital subscribers totaling 0.9 million and 1.2 million, respectively, for the 13 weeks ended December 25, 2016. We estimate that almost three million people read our printed daily newspapers each day; and

• Nearly 300 weekly newspapers and classified and niche publications.

Our markets have established retail bases, and most are regional shopping hubs. We are located in four state capitals. Six of our top ten markets by revenue include major universities, and seven are home to major corporate headquarters. We believe that all of these factors have had a positive impact on advertising revenue. Community newspapers and their associated digital media remain a valuable source of local news and information attracting large local audiences and is an effective means for local advertisers to reach their customers. We believe our audiences across these communities tend to be loyal readers who actively seek our content and serve as an attractive target for our advertisers.

We do not face significant competition from other local daily newspapers in most of our markets, although there is competition for audience in those markets from other media. In our top ten markets by revenue, only two have significant local daily print competition.

Our primary source of revenue is advertising and marketing services, followed by subscription revenue. Over the last several years, the advertising industry has experienced a shift from print and other traditional media towards digital

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advertising as readership has also shifted from print to digital. This trend in traditional print advertising and readership was compounded by the effects of the last recession, and such trend continues to impact our print advertising and marketing services revenue. In addition, our printed newspaper paid subscription and single copy unit sales have declined. We have offset some of our declines in print advertising and marketing services revenue by growing our digital advertising revenue. Subscription revenue has been maintained by increasing subscription rates which includes full access, selling premium day sections and increasing the number of paid digital subscribers.

We have a full access subscription model, which provides subscribers with complete digital access, including desktop, mobile, tablet and replica editions. These are offered as packages with print home delivery or as digital-only subscriptions, with subscription rates reflective of the expanded access.

We continue to transform our business model and carefully manage our costs to maintain strong cash flows and margins.

IMPAIRMENT OF GOODWILL AND OTHER ASSETS

We have significant amounts of goodwill and identified intangible assets. Since 2007 we have recorded impairment charges totaling almost $1.3 billion to reduce the value of certain of these assets. Should general economic, market or business conditions decline, and have a negative impact on our stock price or projected future cash flows, we may be required to record additional impairment charges in the future. Such impairment charges would not impact our reported cash flows or debt covenant compliance.

DEBT AND LIQUIDITY

We have a substantial amount of debt, as discussed more fully in Note 4 of the Notes to Consolidated Financial Statements, included herein. Since February 2009, we have satisfied all interest payments and substantially all principal payments due under our debt facilities with our cash flows and asset sales.

As of December 25, 2016, our debt consists of the following:

• $400,000,000 aggregate principal amount of 9.5% Senior Secured Notes (the “Notes”), pursuant to an Indenture dated as of March 31, 2014 (the “Indenture”), of which $385,000,000 is outstanding at December 25, 2016 ;

• $250,000,000 first lien term loan (the "1st Lien Term Loan") and $40,000,000 revolving facility (the "Revolving Facility") under a First Lien Credit Agreement dated as of March 31, 2014 (together, the “1^st Lien Credit Facility”), of which $83,984,000 is outstanding at December 25, 2016; and

• $150,000,000 second lien term loan under a Second Lien Loan Agreement dated as of March 31, 2014 (the “ 2^nd Lien Term Loan”), of which $130,433,000 is outstanding at December 25, 2016.

Our ability to make payments on our indebtedness will depend on our ability to generate future cash flows from operations. Cash generated from future asset sales could serve as an additional source of repayment. This ability, to a certain extent, is subject to general economic, financial, competitive, business, legislative, regulatory and other factors that are beyond our control.

At December 25, 2016, after consideration of letters of credit, we have approximately $33,318,000 available for future use under our Revolving Facility. Including cash, our liquidity at December 25, 2016 totals $53,418,000. This liquidity amount excludes any future cash flows. Our adjusted EBITDA has been strong for the last seven years and has exceeded $148,000,000 in each year from 2011 through the trailing twelve months ended December 25, 2016, but there can be no assurance that such performance will continue. We expect all interest and principal payments due in the next twelve months will be satisfied by our cash flows from operations and certain asset sales, which will allow us to maintain an adequate level of liquidity.

At December 25, 2016, the principal amount of our outstanding debt totaled $599,417,000. The December 25, 2016 principal amount of our debt, net of cash, is 3.9 times our trailing twelve months adjusted EBITDA, compared to a ratio of 4.3 at December 27, 2015.

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The 2014 Refinancing significantly improved our debt maturity profile. Final maturities of our debt are December 2018 through December 2022. As a result, we believe refinancing risk has been substantially reduced for the next several years.

There are numerous potential consequences under the Notes, 1^st Lien Credit Facility and 2^nd Lien Term Loan, if an event of default, as defined, occurs and is not remedied. Many of those consequences are beyond our control. The occurrence of one or more events of default would give rise to the right of the applicable lender(s) to exercise their remedies under the Notes, 1^st Lien Credit Facility and 2^nd Lien Term Loan, respectively, including, without limitation, the right to accelerate all outstanding debt and take actions authorized in such circumstances under applicable collateral security documents.

Our ability to operate as a going concern is dependent on our ability to remain in compliance with debt covenants and to repay, refinance or amend our debt agreements as they become due, if necessary. The Notes, 1^st Lien Credit Facility and 2^nd Lien Term Loan have only limited affirmative covenants with which we are required to maintain compliance. We are in compliance with our debt covenants at December 25, 2016.

Due to our federal and state net operating loss carryforwards and based on historical levels of performance, we do not expect to make any significant income tax payments in the current year.

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13 WEEKS ENDED DECEMBER 25, 2016

Operating results, as reported in the Consolidated Financial Statements, are summarized below.

	13 Weeks Ended
(Thousands of Dollars, Except Per Share Data)	December 25 2016		December 27 2015		Percent Change		Same Property
Advertising and marketing services revenue:
Retail	61,905		69,787		(11.3	)	(9.4	)
Classified	22,204		26,016		(14.7	)	(13.7	)
National	6,300		6,888		(8.5	)	(7.4	)
Niche publications and other	2,626		2,946		(10.9	)	(10.8	)
Total advertising and marketing services revenue	93,035		105,637		(11.9	)	(10.4	)
Subscription	48,888		50,430		(3.1	)	(1.9	)
Digital services	3,474		3,316		4.8		4.8
Commercial printing	2,774		3,226		(14.0	)	(13.1	)
Other	5,818		5,796		0.4		0.5
Total operating revenue	153,989		168,405		(8.6	)	(7.2	)
Operating expenses:
Compensation	55,056		58,665		(6.2	)	(5.1	)
Newsprint and ink	6,893		6,685		3.1		3.1
Other operating expenses	52,777		58,869		(10.3	)	(8.1	)
Workforce adjustments	65		604		(89.2	)	(89.2	)
Cash costs	114,791		124,823		(8.0	)	(6.4	)
	39,198		43,582		(10.1	)
Depreciation and amortization	10,380		10,943		(5.1	)
Loss (gain) on sales of assets, net	68		(971	)	NM
Equity in earnings of associated companies	2,689		2,799		(3.9	)
Operating income	31,439		36,409		(13.7	)
Non-operating income (expense), net	(12,733	)	(17,754	)	(28.3	)
Income before income taxes	18,706		18,655		0.3
Income tax expense	6,266		7,147		(12.3	)
Net income	12,440		11,508		8.1
Net income attributable to non-controlling interests	(267	)	(271	)	(1.5	)
Income attributable to Lee Enterprises, Incorporated	12,173		11,237		8.3
Other comprehensive income (loss), net of income taxes	55		(43	)	NM
Comprehensive income attributable to Lee Enterprises, Incorporated	12,228		11,194		9.2
Earnings per common share:
Basic	0.23		0.21		9.5
Diluted	0.22		0.21		4.8

References to the "2017 Quarter" refer to the 13 weeks ended December 25, 2016. Similarly, references to the "2016 Quarter" refer to the 13 weeks ended December 27, 2015. Due to the disposition of the Provo Daily Herald in August of 2016, all of the revenue and operating expense trends discussed below are on a same property basis, unless otherwise noted.

Advertising and Marketing Services Revenue

In the 2017 Quarter, advertising and marketing services revenue decreased $10,775,000, or10.4%, compared to the 2016 Quarter. Retail advertising decreased9.4%. The decrease in advertising and marketing services revenue is due to reduced advertising volume primarily from large retailers, big box stores and classifieds. Digital retail advertising on a stand-alone basis, which is the largest digital advertising category, increased 7.0%,partially offsetting print declines.

23

Classified revenue decreased $3,523,000, or 13.7%, in the 2017 Quarter as we continue to experience a reduction in print advertising in automotive, employment and real estate in most of our markets. Digital classified revenue on a stand-alone basis increased 4.9%.

National advertising decreased$501,000, or7.4%. Digital national advertising on a stand-alone basis increased11.0%as a result of growing audience andimproved pricing from inventory management of available ad positions offered on the national advertising exchanges. Revenue in niche publication and other decreased $317,000, or 10.8%.

On a stand alone basis, digital advertising and marketing services revenue increased6.8%to$22,929,000in the 2017 Quarter, representing24.6%of total advertising and marketing services revenue. Mobile advertising revenue, which is included in digital advertising, increased 20.6% in the 2017 Quarter. Total digital revenue, including advertising and marketing services and all other digital business, totaled $26,403,000 in the 2017 Quarter, an increase of 6.5% over the 2016 Quarter. Print advertising, including preprints and print marketing services revenue, decreased 14.9%.

Subscription and Other Revenue

Subscription revenue decreased $960,000, or 1.9%, in the 2017 Quarter. Revenue declines were due to lower volumes which were not offset by higher subscription rates.

Our average daily newspaper circulation, including TNI, MNI and digital subscribers, totaled 0.9 million in the 2017 Quarter. Sunday circulation totaled 1.2 million.

Digital services revenue increased$158,000, or4.8%, largely due to TownNews.com, which generates the majority of its revenue from content management services but is expanding into digital ad agency services for web, mobile and social products at our properties as well as 1,600 other newspapers, and media operations. Commercial printing revenue decreased$418,000, or13.1%, in the 2016 Quarter due to decreased volume for existing customers at several of our largest markets. Other revenue increased $28,000, or 0.5%, in the 2017 Quarter.

Our mobile, tablet, desktop and app sites, including TNI and MNI, attracted an average of 25.6 million unique visitors in the quarter ended December 2016, with 210.0 million page views. Research in our larger markets indicates we continue to reach over 76% of all adults in the market through the combination of digital audience growth and strong print newspaper readership.

Operating Expenses

Operating expenses for the 2017 Quarter decreased 5.5%. Cash costs decreased$7,913,000, or6.4%, in the 2017 Quarter.

Compensation expense decreased $2,940,000, or 5.1%, in the 2017 Quarter, driven by a decline of 7.0% in average full-time equivalent employees.

Newsprint and ink costs increased$208,000, or3.1%, in the 2017 Quarter,as a result of newsprint price increases offset by an 11.8% reductionin newsprint volume. See Item 3, “Commodities”, included herein, for further discussion and analysis of the impact of newsprint prices on our business.

Other operating expenses, which are comprised of all operating costs not considered to be compensation, newsprint, depreciation, amortization, or unusual matters including delivery, postage, outsourced printing, digital cost of goods sold, facility expenses among others, decreased$4,642,000, or 8.1%, in the 2017 Quarter. Cost reductions were primarily related to the impact of both subscriber delivery cost and a decrease in postage costs primarily related to a reduction in direct mail advertising volumes.

Excluding workforce adjustments, cash costs decreased 6.0% in the 2017 Quarter.

Reductions in staffing resulted in workforce adjustment costs totaling $65,000 and $604,000 in the 2017 Quarter and 2016 Quarter, respectively.

For fiscal year 2017, we now expect cash costs excluding workforce adjustments, to decrease between 5% to 6% on a same property basis.

24

Results of Operations

On a GAAP basis, depreciation expense decreased $256,000, or 5.9%, and amortization expense decreased $307,000, or 4.6%, in the 2017 Quarter. Sales of operating assets resulted in a net loss of $68,000 in the 2017 Quarter compared to a gain of $971,000 in the 2016 Quarter.

Equity in earnings of TNI and MNI decreased $110,000 in the 2017 Quarter.

The factors noted above resulted in operating income of $31,439,000 in the 2017 Quarter compared to $36,409,000 in the 2016 Quarter.

Nonoperating Income and Expense

Interest expense decreased $2,190,000, or 12.8%, to $14,952,000 in the 2017 Quarter due to lower debt balances.Our weighted average cost of debt, excluding amortization of debt financing costs, increased to 9.7% at the end of the 2017 Quarter compared to 9.5% at the end of the 2016 Quarter, as our Notes and 2^nd Lien Term Loan balances are now a greater percentage of our outstanding debt due to the reduction of the 1^st Lien Term Loan, our lowest cost of debt.

We recognized $951,000 of debt financing and administrative costs in the 2017 Quarter compared to $1,333,000 in the 2016 Quarter.

Due to the fluctuation in the price of our Common Stock, we recorded non-operating income related to the decrease in the value of the Warrants of $3,095,000 in 2017 Quarter and $72,600 in the 2016 Quarter. We also recognized a $525,000 gain on extinguishment of debt in the 2016 Quarter.

Overall Results

We recognized income tax expense of $6,266,000, resulting in an effective tax rate of 33.5% in the 2017 Quarter compared to 38.3% in the 2016 Quarter. See Note 6 of the Notes to the Consolidated Financial Statements, included herein, for a discussion of the difference between the expected federal income tax rate and the actual tax rates.

As a result of the factors noted above, income attributable to Lee Enterprises, Incorporated totaled$12,173,000in the 2017 Quarter compared to$11,237,000in the 2016 Quarter. We recorded earnings per diluted common share of$0.22in the 2017 Quarter and$0.21in the 2016 Quarter. Excluding warrant valuation adjustments, as detailed in the table below, diluted earnings per common share, as adjusted, were$0.16in the 2017 Quarter, compared to$0.21in the 2016 Quarter. Per share amounts may not add due to rounding.

	13 Weeks Ended
	December 25 2016				December 27 2015
(Thousands of Dollars, Except Per Share Data)	Amount		Per Share		Amount		Per Share
Income attributable to Lee Enterprises, Incorporated, as reported	12,173		0.22		11,237		0.21
Adjustments:
Warrants fair value adjustment	(3,095	)			(73	)
	(3,095	)	(0.06	)	(73	)	—
Income attributable to Lee Enterprises, Incorporated, as adjusted	9,078		0.16		11,164		0.21

25

LIQUIDITY AND CAPITAL RESOURCES

Operating Activities

Cash provided by operating activities was $22,888,000 in the 2017 Period and $21,069,000 in the 2016 Period. We recorded net income of $12,440,000 in the 2017 Period and $11,508,000 in the 2016 Period. Non-cash debt financing costs charged to expense totaled $951,000 in the 2017 Period compared to $1,333,000 in the 2016 Period. Changes in depreciation and amortization, deferred income taxes, and operating assets and liabilities accounted for the bulk of the change in cash provided by operating activities in the 2017 Quarter.

Investing Activities

Cash required for investing activities totaled $1,698,000 in the 2017 Period compared to cash provided by investing activities of $1,007,000 in the 2016 Period. Capital spending totaled $1,090,000 in the 2017 Period compared to $1,470,000 in the 2016 Period. We received $450,000 and $2,614,000 of proceeds from sales of assets in the 2017 Period and the 2016 Period, respectively.

We anticipate that funds necessary for capital expenditures, which are expected to total up to $10,000,000 in 2017, and other requirements, will be available from internally generated funds or availability under our Revolving Facility.

Financing Activities

Cash required for financing activities totaled $18,074,000 in the 2017 Period and $21,397,000 in the 2016 Period. Debt reduction accounted for the majority of the usage of funds in both the 2017 Period and the 2016 Period.

Liquidity

At December 25, 2016, after consideration of letters of credit, we have approximately $33,318,000 available for future use under our Revolving Facility. Including cash, our liquidity at December 25, 2016 totals $53,418,000. This liquidity amount excludes any future cash flows. We expect all interest and principal payments due in the next twelve months will be satisfied by our cash flows, which will allow us to maintain an adequate level of liquidity. The Warrants, if and when exercised, would provide additional liquidity in an amount up to $25,140,000.

At December 25, 2016, the principal amount of our outstanding debt totals $599,417,000. The December 25, 2016 principal amount of debt, net of cash, is 3.9 times our trailing 12 months adjusted EBITDA, compared to a ratio of 4.3 at December 27, 2015.

The 2014 Refinancing significantly extended our debt maturity profile with final maturity of the majority of our debt in 2022. As a result, refinancing risk has been substantially reduced for the next several years.

There are numerous potential consequences under the Notes, 1^st Lien Credit Facility and 2^nd Lien Term Loan, if an event of default, as defined, occurs and is not remedied. Many of those consequences are beyond our control. The occurrence of one or more events of default would give rise to the right of the applicable lender(s) to exercise their remedies under the Notes, 1^st Lien Credit Facility and 2^nd Lien Term Loan, respectively, including, without limitation, the right to accelerate all outstanding debt and take actions authorized in such circumstances under applicable collateral security documents.

Our ability to operate as a going concern is dependent on our ability to remain in compliance with debt covenants and to refinance or amend our debt agreements as they become due, or earlier if available liquidity is consumed. The Notes, 1^st Lien Credit Facility and 2^nd Lien Term Loan have only limited affirmative covenants with which we are required to maintain compliance. We are in compliance with our debt covenants at December 25, 2016.

In January 2017 we filed a replacement Form S-3 with the SEC, which is currently under review by the SEC staff. In 2014, we filed a Form S-3 shelf registration statement ("Shelf") with the SEC, which is effective and expires February 7, 2017. The Shelf registration gives us the flexibility to issue and publicly distribute various types of securities, including preferred stock, common stock, warrants, secured or unsecured debt securities, purchase contracts and units consisting of any combination of such securities, from time to time, in one or more offerings, up to an aggregate amount of $750,000,000. SEC issuer eligibility rules require us to have a public float of at least $75,000,000 in order to use the Shelf. Subject to maintenance of the minimum level of equity market float and the conditions of our existing debt

26

agreements, the Shelf may enable us to sell securities quickly and efficiently when market conditions are favorable or financing needs arise. Under our existing debt agreements, net proceeds from the sale of any securities may be used generally to reduce debt.

CHANGES IN LAWS AND REGULATIONS

Energy Costs

Energy costs can be volatile, and may increase in the future as a result of carbon emissions and other regulations being considered by the United States Environmental Protection Agency.

Health Care Costs

The Affordable Care Act was enacted into law in 2010.

We expect the requirements under the Affordable Care Act will continue to evolve and may ultimately be repealed and/or replaced. We expect our future health care costs to increase based on analysis published by the United States Department of Health and Human Services, input from independent advisors and our understanding of the current provisions of the Affordable Care Act, such as:

•Certain preventive services provided without additional charge to employees;

•Automatic enrollment of new employees;

•Higher maximum age for dependent coverage;

•Elimination of lifetime benefit caps; and

•Free choice vouchers for certain lower income employees.

Administrative costs are also likely to increase as a result of compliance reporting and mandatory fees per participant required by the Affordable Care Act. New costs being imposed on other medical care businesses, such as health insurers, pharmaceutical companies and medical device manufacturers, may be passed on to us in the form of higher costs. We may be able to mitigate certain of these future cost increases through changes in plan design.

We do not expect the Affordable Care Act will have a significant impact on our postretirement medical benefit obligation liability.

Pension Plans

In 2012, the Surface Transportation Extension Act of 2012 (“STEA”) was signed into law. STEA provides for changes in the determination of discount rates that result in a near-term reduction in minimum funding requirements for our defined benefit pension plans. STEA will also result in an increase in future premiums to be paid to the Pension Benefit Guarantee Corporation ("PBGC").

In 2014, the Highway and Transportation Funding Act ("HATFA") was signed into law. HATFA generally extends the relief offered under STEA and further increases premiums to be paid to the PBGC.

Income Taxes

Certain states in which we operate periodically consider changes to their corporate income tax rates. Until such changes are enacted, the impact of such changes cannot be determined.

Wage Laws

In 2016, the Department of Labor ("DOL") published its final rule updating overtime regulations and minimum pay regulations for exempt employees. Among other things, the final rule establishes a minimum weekly rate for all exempt employees of $913 per week, more than double the previous limit. The final rule was scheduled to be effective beginning December 1, 2016. However, recently a federal district court issued a preliminary injunction on the rule becoming final. Until a final ruling is issued, the Company cannot determine what impact this rule will have.

27

The United States and various state and local governments are considering increasing their respective minimum wage rates. Most of our employees earn an amount in excess of the current United States or state minimum wage rates. However, until changes to such rates are enacted, the impact of the changes cannot be determined.

INFLATION

Price increases (or decreases) for our products are implemented when deemed appropriate by us. We continuously evaluate price increases, productivity improvements, sourcing efficiencies and other cost reductions to mitigate the impact of inflation.

Item 3.       Quantitative and Qualitative Disclosures About Market Risk

We are exposed to market risk stemming from changes in interest rates and commodity prices. Changes in these factors could cause fluctuations in earnings and cash flows. In the normal course of business, exposure to certain of these market risks is managed as described below.

INTEREST RATES ON DEBT

Our debt structure, which is predominantly fixed rate, significantly reduces the potential impact of an increase in interest rates. At December 25, 2016, 14.0% of the principal amount of our debt is subject to floating interest rates. Our primary exposure is to LIBOR. A 100 basis point increase to LIBOR would, if in excess of LIBOR minimums discussed more fully below, decrease income before income taxes on an annualized basis by approximately $838,940based on$83,894,000of floating rate debt outstanding at December 25, 2016.

Our debt under the 1^st Lien Term Loan is subject to minimum interest rate levels of 1.0%. Based on the difference between interest rates in December 2016 and our 1.0% minimum rate, LIBOR would need to increase approximately 28 basis points for one month borrowing before our borrowing cost would begin to be impacted by an increase in interest rates.

We regularly evaluate alternatives to hedge our interest rate risk, but have no hedging instruments in place.

COMMODITIES

Several price increases were implemented from all North American newsprint producers in 2016. Facing constant North American and worldwide demand decline, U.S. and Canadian producers continue to manage supply capacity via temporary and permanent production capacity reduction.

Price change announcements are influenced primarily by the balance between supply capacity and demand, domestic and export, and the producer's ability to mitigate input cost pressures taking the U. S. dollar to Canadian dollar exchange rate into consideration. The extent to which future price changes occur is subject to negotiations with each newsprint producer at the time newsprint is ordered. Average cost per metric ton was approximately 15% higher at the end of the first Quarter 2017 compared to the same period a year ago.

Our Long term supply strategy takes potential capacity closures into consideration and aligns the Company with suppliers most likely to continue to supply the North American newsprint market and our print locations.

A $10 per tonne price increase for 30 pound newsprint would result in an annualized reduction in income before income taxes of approximately $483,000, based on anticipated consumption in 2017, excluding consumption of TNI and MNI and the impact of LIFO accounting. Such prices may also decrease. We manage significant newsprint inventories, which will temporarily mitigate the impact of future price increases.

SENSITIVITY TO CHANGES IN VALUE

At December 25, 2016, the fair value of floating rate debt, which consists primarily of our 1^st Lien Term Loan, is $84,100,000, based on an average of private market price quotations. Our fixed rate debt consists of $385,000,000 principal amount of the Notes and $130,433,000 principal amount under the 2^nd Lien Term Loan. At December 25, 2016, based on an average of private market price quotations, the fair values were $405,000,000 and $139,000,000 for the Notes and 2nd Lien Term Loan, respectively.

28

Item 4.       Controls and Procedures

EVALUATION OF DISCLOSURE CONTROLS AND PROCEDURES

Under the supervision and with the participation of our senior management, including our chief executive officer and chief financial officer, we conducted an evaluation of the effectiveness of the design and operation of our disclosure controls and procedures, as defined in Rules 13a-15(e) and 15d-15(e) under the Exchange Act, as of the end of the period covered by this Quarterly Report on Form 10-Q (the “Evaluation Date”). Based on this evaluation, our chief executive officer and chief financial officer concluded as of the Evaluation Date that our disclosure controls and procedures were effective such that the information relating to the Company, including our consolidated subsidiaries, required to be disclosed in our SEC reports (i) is recorded, processed, summarized and reported within the time periods specified in SEC rules and forms, and (ii) is accumulated and communicated to our management, including our chief executive officer and chief financial officer, as appropriate to allow timely decisions regarding required disclosure.

CHANGES IN INTERNAL CONTROL OVER FINANCIAL REPORTING

There have been no changes in our internal control over financial reporting that occurred during the 13 weeks ended December 25, 2016 that have materially affected, or are reasonably likely to materially affect, our internal control over financial reporting.

PART II

OTHER INFORMATION

Item 1.        Legal Proceedings

We are involved in a variety of legal actions that arise in the normal course of business. Insurance coverage mitigates potential loss for certain of these matters. While we are unable to predict the ultimate outcome of these legal actions, it is our opinion that the disposition of these matters will not have a material adverse effect on our Consolidated Financial Statements, taken as a whole.

Item 6.        Exhibits

Number	Description
31.1	Rule 13a-14(a)/15d-14(a) certification
31.2	Rule 13a-14(a)/15d-14(a) certification
32	Section 1350 certification

SIGNATURES

Pursuant to the requirements of the Securities Exchange Act of 1934, the Registrant has duly caused this report to be signed on its behalf by the undersigned thereunto duly authorized.

LEE ENTERPRISES, INCORPORATED
/s/ Ronald A. Mayo	February 3, 2017
Ronald A. Mayo
Vice President, Chief Financial Officer and Treasurer
(Principal Financial and Accounting Officer)

29

EX-31.1

Exhibit 31.1

CERTIFICATION OF CHIEF EXECUTIVE OFFICER

I, Kevin D. Mowbray, certify that:

1	I have reviewed this Quarterly report on Form 10-Q ("Quarterly Report") of Lee Enterprises, Incorporated ("Registrant");
2	Based on my knowledge, this Quarterly 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 Quarterly Report;
3	Based on my knowledge, the Consolidated Financial Statements, and other financial information included in this Quarterly 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 Quarterly 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 Quarterly 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 Quarterly Report our conclusions about the effectiveness of the disclosure controls and procedures as of the end of the period covered by this Quarterly Report based on such evaluation; and
		d)	disclosed in this Quarterly 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 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: February 3, 2017

/s/ Kevin D. Mowbray

Kevin D. Mowbray

President and Chief Executive Officer

EX-31.2

Exhibit 31.2

CERTIFICATION OF CHIEF FINANCIAL OFFICER

I, Ronald A. Mayo, certify that:

1	I have reviewed this Quarterly report on Form 10-Q ("Quarterly Report") of Lee Enterprises, Incorporated ("Registrant");
2	Based on my knowledge, this Quarterly 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 Quarterly Report;
3	Based on my knowledge, the Consolidated Financial Statements, and other financial information included in this Quarterly 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 Quarterly 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 Quarterly 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 Quarterly Report our conclusions about the effectiveness of the disclosure controls and procedures as of the end of the period covered by this Quarterly Report based on such evaluation; and
		d)	disclosed in this Quarterly 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 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: February 3, 2017

/s/ Ronald A. Mayo

Ronald A. Mayo

Vice President, Chief Financial Officer and Treasurer

EX-32

Exhibit 32

The following statement is being furnished to the Securities and Exchange Commission solely for purposes of Section 906 of the Sarbanes-Oxley Act of 2002 (18 U.S.C. 1350), which carries with it certain criminal penalties in the event of a knowing or willful misrepresentation.

Securities and Exchange Commission

450 Fifth Street, NW

Washington, DC 20549

Re: Lee Enterprises, Incorporated

Ladies and Gentlemen:

In accordance with the requirements of Section 906 of the Sarbanes-Oxley Act of 2002 (18 U.S.C. 1350), each of the undersigned hereby certifies that to our knowledge:

(i)	this Quarterly report on Form 10-Q for the period ended December 25, 2016 ("Quarterly Report"), fully complies with the requirements of section 13(a) or 15(d) of the Securities Exchange Act of 1934 (15 U.S.C. 78m or 78o(d)); and
(ii)	the information contained in this Quarterly Report fairly presents, in all material respects, the financial condition and results of operations of Lee Enterprises, Incorporated for the periods presented in the Quarterly Report.

Date: February 3, 2017

/s/ Kevin D. Mowbray	/s/ Ronald A. Mayo
Kevin D. Mowbray	Ronald A. Mayo
President and Chief Executive Officer	Vice President, Chief Financial Officer
	and Treasurer

A signed original of this written statement required by Section 906 has been provided to Lee Enterprises, Incorporated and will be retained by Lee Enterprises, Incorporated and furnished to the Securities and Exchange Commission upon request.

XML

Document and Entity Information Document - USD ($)	3 Months Ended
	Dec. 25, 2016	Jan. 31, 2017	Mar. 27, 2016
Entity Information [Line Items]
Entity Registrant Name	Lee Enterprises, Inc.
Entity Central Index Key	0000058361
Current Fiscal Year End Date	--09-24
Entity Filer Category	Accelerated Filer
Document Type	10-Q
Document Period End Date	Dec. 25, 2016
Document Fiscal Year Focus	2017
Document Fiscal Period Focus	Q1
Amendment Flag	false
Entity Common Stock, Shares Outstanding		56,580,750
Entity Well-known Seasoned Issuer	No
Entity Voluntary Filers	No
Entity Current Reporting Status	Yes
Entity Public Float			$ 93,233,000

XML

Consolidated Balance Sheet - USD ($) $ in Thousands	Dec. 25, 2016	Sep. 25, 2016
Current assets:
Cash and cash equivalents	$ 20,100	$ 16,984
Accounts receivable, net	56,871	51,334
Inventory	4,709	4,252
Other	4,439	4,683
Total current assets	86,119	77,253
Investments:
Associated companies	30,172	29,716
Other	10,309	9,488
Total investments	40,481	39,204
Property and equipment:
Land and improvements	20,973	21,028
Buildings and improvements	173,555	174,164
Equipment	279,139	279,770
Construction in process	1,316	823
Property, plant and equipment, gross	474,983	475,785
Less accumulated depreciation	349,890	347,223
Property and equipment, net	125,093	128,562
Goodwill	243,729	243,729
Other intangible assets, net	152,075	158,354
Postretirement assets, net	14,439	14,063
Other	1,637	1,690
Total assets	663,573	662,855
Current liabilities:
Current maturities of long-term debt	25,000	25,070
Accounts payable	16,840	18,143
Compensation and other accrued liabilities	19,368	23,884
Accrued Interest	11,797	2,895
Income taxes payable	657	665
Unearned revenue	27,866	28,361
Total current liabilities	101,528	99,018
Long-term debt, net of current maturities	549,044	565,826
Pension obligations	54,531	55,148
Postretirement and postemployment benefit obligations	10,704	10,717
Deferred income taxes	43,766	38,308
Income taxes payable	5,500	5,016
Warrants and other	13,608	16,363
Total liabilities	778,681	790,396
Stockholders' equity (deficit):
Serial convertible preferred stock, no par value; authorized 500 shares; none issued	0	0
Common Stock, Number of Shares, Par Value and Other Disclosures [Abstract]
Additional paid-in capital	249,928	249,740
Accumulated deficit	(343,832)	(356,005)
Accumulated other comprehensive income	(22,724)	(22,778)
Total stockholders' deficit	(116,062)	(128,485)
Non-controlling interests	954	944
Total deficit	(115,108)	(127,541)
Total liabilities and deficit	663,573	662,855
Common Stock [Member]
Stockholders' equity (deficit):
Common Stock	566	558
Common Class B [Member]
Stockholders' equity (deficit):
Common Stock	$ 0	$ 0

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Consolidated Balance Sheet Parentheticals (Parentheticals) - $ / shares	Dec. 25, 2016	Sep. 25, 2016
Preferred Stock, Par or Stated Value Per Share	$ 0	$ 0
Preferred Stock, Shares Authorized	500,000	500,000
Preferred Stock, Shares Issued	0	0
Common Class A [Member]
Common Stock, Par or Stated Value Per Share	$ 0.01	$ 0.01
Common Stock, Shares Authorized	120,000,000	120,000,000
Common Stock, Shares, Issued	56,574,000	55,771,000
Common Class B [Member]
Common Stock, Par or Stated Value Per Share	$ 2.00	$ 2.00
Common Stock, Shares Authorized	30,000,000	30,000,000
Common Stock, Shares, Issued	0	0

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Consolidated Statements of Operations and Comprehensive Income (Loss) - USD ($)	3 Months Ended
	Dec. 25, 2016	Dec. 27, 2015
Operating revenue:
Advertising and marketing services	$ 93,035,000	$ 105,637,000
Subscription	48,888,000	50,430,000
Other	12,066,000	12,338,000
Total operating revenue	153,989,000	168,405,000
Operating expenses:
Compensation	55,056,000	58,665,000
Newsprint and ink	6,893,000	6,685,000
Other operating expenses	52,777,000	58,869,000
Depreciation	4,071,000	4,327,000
Amortization of intangible assets	6,309,000	6,616,000
Gain on sales of assets, net	68,000	(971,000)
Workforce adjustments	65,000	604,000
Total operating expenses	125,239,000	134,795,000
Equity in earnings of associated companies	2,689,000	2,799,000
Operating income	31,439,000	36,409,000
Non-operating income (expense):
Financial income	75,000	76,000
Financial expense	(14,952,000)	(17,142,000)
Debt financing costs and amortization	(951,000)	(1,333,000)
Other, net	3,095,000	645,000
Total non-operating expense, net	(12,733,000)	(17,754,000)
Income (loss) before income taxes	18,706,000	18,655,000
Income tax expense (benefit)	6,266,000	7,147,000
Net income	12,440,000	11,508,000
Net income attributable to non-controlling interests	(267,000)	(271,000)
Income (loss) attributable to Lee Enterprises, Incorporated	12,173,000	11,237,000
Other comprehensive income (loss), net of income taxes	55,000	(43,000)
Comprehensive income (loss) attributable to Lee Enterprises, Incorporated	$ 12,228,000	$ 11,194,000
Basic:
Earnings Per Share, Basic	$ 0.23	$ 0.21
Diluted:
Diluted	$ 0.22	$ 0.21

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Statement of Cash Flows - USD ($)	3 Months Ended
	Dec. 25, 2016	Dec. 27, 2015
Net income	$ 12,440,000	$ 11,508,000
Adjustments to reconcile net income from continuing operations to net cash provided by operating activities of continuing operations:
Depreciation and amortization	10,380,000	10,943,000
Gain (Loss) on Disposition of Property Plant Equipment	(68,000)	971,000
Stock compensation expense	524,000	570,000
Distributions greater than earnings of MNI	114,000	567,000
Deferred income tax expense (benefit)	5,420,000	6,572,000
Debt financing and administrative costs	951,000	1,333,000
Gains (Losses) on Extinguishment of Debt	0	(525,000)
Pension Contributions	0	744,000
Changes in operating assets and liabilities:
Decrease in receivables	(5,537,000)	(7,681,000)
Decrease (increase) in inventories and other	(212,000)	(291,000)
Decrease in accounts payable, compensation and other accrued liabilities and unearned revenue	2,553,000	162,000
Decrease in pension, postretirement and postemployment benefit obligations	(913,000)	(1,565,000)
Change in income taxes receivable or payable	476,000	588,000
Other, net	(3,376,000)	603,000
Net cash provided by operating activities of continuing operations	22,888,000	21,069,000
Cash provided by (required for) investing activities of continuing operations:
Purchases of property and equipment	(1,090,000)	(1,470,000)
Proceeds from sales of assets	450,000	2,614,000
Distributions greater (less) than current earnings of TNI	(570,000)	(137,000)
Other, net	(488,000)	0
Net Cash provided by (required for) investing activities of continuing operations	(1,698,000)	1,007,000
Cash provided by (required for) financing activities of continuing operations:
Proceeds from long-term debt	0	5,000,000
Payments on long-term debt	(17,750,000)	(26,351,000)
Debt financing and reorganization costs paid	0	(44,000)
Common stock transactions net	(324,000)	(2,000)
Net cash required for financing activities of continuing operations	(18,074,000)	(21,397,000)
Net increase in cash and cash equivalents	3,116,000	679,000
Cash and cash equivalents:
Beginning of period	16,984,000	$ 11,134,000
End of period	$ 20,100,000

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Basis of Presentation

3 Months Ended

Dec. 25, 2016

Basis of Presentation [Abstract]

Organization Consolidation and Presentation of Financial Statements Disclosure [Text Block]

BASIS OF PRESENTATION

The accompanying unaudited, interim, Consolidated Financial Statements included herein have been prepared pursuant to the rules and regulations of the Securities and Exchange Commission for quarterly reports. In the opinion of management, these financial statements contain all adjustments (consisting of only normal recurring items) necessary to present fairly the financial position of Lee Enterprises, Incorporated and subsidiaries (the “Company”) as of December 25, 2016 and their results of operations and cash flows for the periods presented. The Consolidated Financial Statements should be read in conjunction with the Consolidated Financial Statements and Notes thereto included in the Company's 2016 Annual Report on Form 10-K.

Because of seasonal and other factors, the results of operations for the 13 weeks ended December 25, 2016 are not necessarily indicative of the results to be expected for the full year.

References to “we”, “our”, “us” and the like throughout the Consolidated Financial Statements refer to the Company. References to “2017”, “2016” and the like refer to the fiscal years ended the last Sunday in September.

The Consolidated Financial Statements include our accounts and those of our subsidiaries, all of which are wholly-owned, except for our 50% interest in TNI Partners (“TNI”), 50% interest in Madison Newspapers, Inc. (“MNI”) and 82.5% interest in TownNews.com.

Investments in TNI and MNI are accounted for using the equity method and are reported at cost, plus our share of undistributed earnings since acquisition less, for TNI, amortization of intangible assets.

In August 2014, the Financial Accounting Standards Board ("FASB") issued a new going concern standard. The new standard provides guidance on how management evaluates and discloses the Company's ability to continue as a going concern for a look-forward period of one year from the financial statement issuance date. We adopted the new standard in 2017, as required. The adoption of this standard did not impact our Consolidated Financial Statements, taken as a whole.

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Investments in Associated Companies

3 Months Ended

Dec. 25, 2016

Investments In Associated Companies [Abstract]

Equity Method Investments Disclosure [Text Block]

INVESTMENTS IN ASSOCIATED COMPANIES

TNI Partners

In Tucson, Arizona, TNI, acting as agent for our subsidiary, Star Publishing Company (“Star Publishing”), and Citizen Publishing Company (“Citizen”), a subsidiary of Gannett Co. Inc., is responsible for printing, delivery, advertising, and subscription activities of the Arizona Daily Star as well as the related digital platforms and specialty publications. TNI collects all receipts and income and pays substantially all operating expenses incident to the partnership's operations and publication of the newspapers and other media.

Income or loss of TNI (before income taxes) is allocated equally to Star Publishing and Citizen.

Summarized results of TNI are as follows:

	13 Weeks Ended
(Thousands of Dollars)	December 25 2016	December 27 2015
Operating revenue	13,314	14,782
Operating expenses	9,999	11,341
Operating income	3,315	3,441
Company's 50% share of operating income	1,658	1,721
Less amortization of intangible assets	105	105
Equity in earnings of TNI	1,553	1,616

TNI makes weekly distributions of its earnings and for the 13 weeks ended December 25, 2016 and December 27, 2015 we received $983,000 and $1,479,000 in distributions, respectively.

Star Publishing's 50% share of TNI depreciation and certain general and administrative expenses (income) associated with its share of the operation and administration of TNI are reported as operating expenses (benefit) in our Consolidated Statements of Income and Comprehensive Income. These amounts totaled $142,000and $(119,000)in the 13 weeks endedDecember 25, 2016andDecember 27, 2015, respectively.

Annual amortization of intangible assets is estimated to be $418,000 for the 52 or 53 weeks ending December 2017, 2018, and 2019. Annual amortization of intangible assets is estimated to be $105,000 for the 52 weeks ending December 2020.

Madison Newspapers, Inc.

We have a 50% ownership interest in MNI, which publishes daily and Sunday newspapers, and other publications in Madison, Wisconsin, and other Wisconsin locations, and operates their related digital platforms. Net income or loss of MNI (after income taxes) is allocated equally to us and The Capital Times Company (“TCT”). MNI conducts its business under the trade name Capital Newspapers.

Summarized results of MNI are as follows:

	13 Weeks Ended
(Thousands of Dollars)	December 25 2016	December 27 2015
Operating revenue	17,042	17,789
Operating expenses, excluding workforce adjustments, depreciation and amortization	13,405	13,612
Depreciation and amortization	349	410
Operating income	3,288	3,767
Net income	2,272	2,358
Equity in earnings of MNI	1,136	1,183

MNI makes quarterly distributions of its earnings and in the 13 weeks ended December 25, 2016 and December 27, 2015 we received dividends of $1,250,000 and $1,750,000, respectively.

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Goodwill and other Intangible Assets

3 Months Ended

Dec. 25, 2016

Goodwill And Other Intangible Assets [Abstract]

Goodwill and Intangible Assets Disclosure [Text Block]

GOODWILL AND OTHER INTANGIBLE ASSETS

Changes in the carrying amount of goodwill are as follows:

	13 Weeks Ended
(Thousands of Dollars)	December 25 2016
Goodwill, gross amount	1,532,458
Accumulated impairment losses	(1,288,729	)
Goodwill, beginning of period	243,729
Goodwill, end of period	243,729

Identified intangible assets consist of the following:

(Thousands of Dollars)	December 25 2016	September 25 2016
Nonamortized intangible assets:
Mastheads	23,644	23,644
Amortizable intangible assets:
Customer and newspaper subscriber lists	687,212	687,182
Less accumulated amortization	558,781	552,472
	128,431	134,710
Noncompete and consulting agreements	28,524	28,524
Less accumulated amortization	28,524	28,524
	—	—
Other intangible assets, net	152,075	158,354

Annual amortization of intangible assets for the 52 or 53 weeks ended December 2017 to December 2021 is estimated to be $22,908,000, $16,653,000, $15,624,000, $15,163,000 and $13,251,000, respectively.

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Debt

3 Months Ended

Dec. 25, 2016

Debt [Abstract]

Debt Disclosure [Text Block]

DEBT

On March 31, 2014, we completed a comprehensive refinancing of our debt (the"2014 Refinancing"), which included the following:

• $400,000,000 aggregate principal amount of 9.5% Senior Secured Notes (the “Notes”), pursuant to an Indenture dated as of March 31, 2014 (the “Indenture”).

• $250,000,000 first lien term loan (the "1^st Lien Term Loan") and $40,000,000 revolving facility (the "Revolving Facility") under a First Lien Credit Agreement dated as of March 31, 2014 (together the “1^st Lien Credit Facility”).

• $150,000,000 second lien term loan under a Second Lien Loan Agreement dated as of March 31, 2014 (the “2^nd Lien Term Loan”).

Debt is summarized as follows:

					Interest Rates(%)
(Thousands of Dollars)	December 25 2016		September 26 2016		December 25 2016
Revolving Facility	—		—		5.65
1st Lien Term Loan	83,984		101,304		7.25
Notes	385,000		385,000		9.50
2nd Lien Term Loan	130,433		130,863		12.00
	599,417		617,167
Unamortized debt issue costs	(25,373	)	(26,271	)
Less current maturities of long-term debt	25,000		25,070
Total long-term debt	549,044		565,826

At December 25, 2016, our weighted average cost of debt, excluding amortization of debt financing costs, is 9.7%.

Aggregate minimum required maturities of debt excluding amounts required to be paid from excess cash flow requirements at December 25, 2016 total $18,750,000 for the remainder of 2017, $25,000,000 in 2018, $40,234,000 in 2019, zero in 2020, zero in 2021 and $515,433,000 thereafter.

In April 2015, the FASB issued a new standard for the presentation of debt issuance costs. The new standard will streamline the balance sheet presentation of debt related valuations. Debt issuance costs were previously recognized as deferred charges and presented as an asset while debt discounts and premiums are treated as adjustments to the related debt. Under the new standard, debt issuance costs are now recognized as reductions to the related debt. The adoption of this standard reclassified certain amounts within our Consolidated Balance Sheets. We adopted the new standard in 2017, as required, and adopted this standard retrospectively. As a result, we have reclassified $26,271,000 of Other long-term assets to a reduction of long-term debt, net of current maturities in the September 25, 2016 Consolidated Balance Sheet.

Notes

The Notes are senior secured obligations of the Company and mature on March 15, 2022. At December 25, 2016, the principal balance of the Notes totaled $385,000,000.

Interest

The Notes require payment of interest semiannually on March 15 and September 15 of each year, at a fixed annual rate of 9.5%.  

Redemption

We may redeem some, or all, of the principal amount of the Notes at any time. Prior to March 15, 2018, we may redeem the Notes subject to a make whole provision for the interest through March 15, 2018. On or after March 15, 2018, we may redeem the Notes as follows:

Period Beginning	Percentage of Principal Amount
March 15, 2018	104.75
March 15, 2019	102.38
March 15, 2020	100.00

We may redeem up to 35% of the Notes prior to March 15, 2017 at 109.5% of the principal amount using the proceeds of certain future equity offerings.

If we sell certain of our assets or experience specific kinds of changes of control, we must, subject to certain exceptions, offer to purchase the Notes at 101% of the principal amount. Any redemption of the Notes must also satisfy any accrued and unpaid interest thereon.

We may repurchase Notes in the open market at any time. In the 13 weeks ended December 27, 2015, we purchased $5,000,000 principal amount of Notes in privately negotiated transactions. The transaction resulted in a gain on extinguishment of $525,000, which is recorded in Other, net in the Consolidated Statements of Income and Comprehensive Income.

Covenants and Other Matters

The Indenture and the 1^st Lien Credit Facility contains restrictive covenants as discussed more fully below. However, certain of these covenants will cease to apply if the Notes are rated investment grade by either Moody’s Investors Service, Inc. or Standard & Poor’s Ratings Group and there is no default or event of default under the Indenture.

1^st Lien Credit Facility

The 1^st Lien Credit Facility consists of the $250,000,000 1^st Lien Term Loan that matures in March 2019 and the $40,000,000 Revolving Facility that matures in December 2018. The 1^st Lien Credit Facility documents the primary terms of the 1^st Lien Term Loan and the Revolving Facility. The Revolving Facility may be used for working capital and general corporate purposes (including letters of credit). At December 25, 2016, after consideration of letters of credit, we have approximately $33,318,000 available for future use under the Revolving Facility.

Interest

Interest on the 1^st Lien Term Loan, which has a principal balance of $83,984,000 at December 25, 2016, accrues, at our option, at either (A) LIBOR plus 6.25% (with a LIBOR floor of 1.0%) or (B) 5.25% plus the higher of (i) the prime rate at the time, (ii) the federal funds rate plus 0.5%, or (iii) one month LIBOR plus 1.0% (with a floor of 2.0%). Interest is payable quarterly.

The 1^st Lien Term Loan was funded with an original issue discount of 2.0%, or $5,000,000, which is being amortized as debt financing and administration costs over the life of the 1^st Lien Term Loan.

Interest on the Revolving Facility, which has a principal balance of zero at December 25, 2016, accrues, at our option, at either (A) LIBOR plus 5.5%, or (B) 4.5% plus the higher of (i) the prime rate at the time, (ii) the federal funds rate plus 0.5%, or (iii) one month LIBOR plus 1.0%.

Principal Payments

Quarterly principal payments of $6,250,000 are required under the 1^st Lien Term Loan, with additional payments required to be made based on 90% of excess cash flow of Lee Legacy ("Lee Legacy Excess Cash Flow"), as defined, or from proceeds of asset sales, which are not reinvested, as defined, from our subsidiaries other than Pulitzer Inc. ("Pulitzer") and its subsidiaries (collectively, the "Pulitzer Subsidiaries"). For excess cash flow calculation purposes Lee Legacy constitutes the business of the Company, including MNI, but excluding Pulitzer and TNI. We may voluntarily prepay principal amounts outstanding or reduce commitments under the 1^st Lien Credit Facility at any time without premium or penalty, upon proper notice and subject to certain limitations as to minimum amounts of prepayments.

Quarterly, the Company is required to prepare a Lee Legacy Excess Cash Flow calculation, which is generally determined as the cash earnings of our subsidiaries other than the Pulitzer Subsidiaries and is adjusted for changes in working capital, capital spending, pension contributions, debt principal payments and income tax payments or refunds. Any excess cash flow as calculated is required to be paid to the 1^st Lien lenders 45 days after the end of the quarter.For the 13 weeks ended December 25, 2016, the required Lee Legacy Excess Cash Flow payment was $0.

2017 payments made, or required to be made for the remainder of the year, under the 1^st Lien Term Loan are summarized as follows:

	13 Weeks Ended			13 Weeks Ending
(Thousands of Dollars)	December 25 2016	March 26 2017	June 25 2017	September 24 2017
Mandatory	6,250	6,250	6,250	6,250
Voluntary	11,000	—	—	—
Excess cash flow payment	70	—	—	—
	17,320	6,250	6,250	6,250

Covenants and Other Matters

The 1^st Lien Credit Facility requires that we comply with certain affirmative and negative covenants customary for financing of this nature, including a maximum total leverage ratio, which is only applicable to the Revolving Facility. 

The 1^st Lien Credit Facility restricts us from paying dividends on our Common Stock. This restriction no longer applies if Lee Legacy leverage is below 3.25x before and after such payments. Further, the 1^st Lien Credit Facility restricts or limits, among other things, subject to certain exceptions, the ability of the Company and its subsidiaries to: (i) incur indebtedness, (ii) enter into mergers, acquisitions and asset sales, (iii) incur or create liens and (iv) enter into transactions with certain affiliates. The 1^st Lien Credit Facility contains various representations and warranties and may be terminated upon occurrence of certain events of default. The 1^st Lien Credit Facility also contains cross-default provisions tied to the terms of each of the Indenture and 2^nd Lien Term Loan.

2^nd Lien Term Loan

The 2^nd Lien Term Loan, which has a balance of $130,433,000 at December 25, 2016, bears interest at a fixed annual rate of 12.0%, payable quarterly, and matures in December 2022.

Principal Payments

There are no scheduled mandatory amortization payments required under the 2^nd Lien Term Loan.

Quarterly, we are required to prepare a calculation of excess cash flow of the Pulitzer Subsidiaries ("Pulitzer Excess Cash Flow"). Pulitzer Excess Cash Flow is generally determined as the cash earnings of the Pulitzer Subsidiaries adjusted for changes in working capital, capital spending, pension contributions, debt principal payments and income tax payments. Pulitzer Excess Cash Flow also includes a deduction for interest costs incurred under the 2^nd Lien Term Loan.

Under the 2^nd Lien Term Loan, subject to certain other conditions, Pulitzer Excess Cash Flow must be used, (a) prior to March 31, 2017, to make an offer to the 2^nd Lien Lenders to prepay amounts under the 2^nd Lien Term Loan at par (which offer the 2^nd Lien Lenders may accept or reject; if rejected we may use the Pulitzer Excess Cash Flow to prepay amounts under the 1^st Lien Credit Facility or repurchase Notes in the open market), and (b) after March 31, 2017, to pay such amounts under the 2^nd Lien Term Loan at par. Pulitzer Excess Cash Flow payments are required to be paid 45 days after the end of the quarter.

Pulitzer Excess Cash Flow and the related payments on the 2^nd Lien Term Loan for the previous four quarters are as follows:

For the Period Ending (Thousands of Dollars)	Pulitzer Excess Cash Flow	Payment Date	Payment Amount (not rejected)
December 27, 2015	2,864	Q2 2016	1,867
March 27, 2016	2,730	Q3 2016	525
June 26, 2016	1,583	Q4 2016	299
September 25, 2016	—	Q1 2017	—

For the 13 weeks ended December 25, 2016, Pulitzer Excess Cash Flow totaled $930,000, which will be offered to the 2^nd Lien lenders in February 2017.

Subject to certain other conditions in the 2^nd Lien Term Loan, the balance of the 2^nd Lien Term Loan will be repaid at par from proceeds from asset sales by the Pulitzer Subsidiaries that are not reinvested. For the 13 weeks ended December 25, 2016 and December 27, 2015, we repaid $430,000 and $2,300,000, respectively, on the 2^nd Lien Term loan, at par, with net proceeds from the sale of Pulitzer assets.

Voluntary payments under the 2^nd Lien Term Loan are subject to call premiums as follows:

Period Beginning	Percentage of Principal Amount
March 31, 2014	112
March 31, 2017	106
March 31, 2018	103
March 31, 2019	100

Covenants and Other Matters

The 2^nd Lien Term Loan requires that we comply with certain affirmative and negative covenants customary for financing of this nature, including the negative covenants under the 1^st Lien Credit Facility discussed above. The 2^nd Lien Term Loan contains various representations and warranties and may be terminated upon occurrence of certain events of default. The 2^nd Lien Term Loan also contains cross-default provisions tied to the terms of the Indenture and 1^st Lien Credit Facility.

In connection with the 2^nd Lien Term Loan, we entered into a Warrant Agreement dated as of March 31, 2014 (the “Warrant Agreement”). Under the Warrant Agreement, certain affiliates or designees of the 2^nd Lien Lenders received on March 31, 2014 their pro rata share of warrants to purchase, in cash, an initial aggregate of 6,000,000 shares of Common Stock, subject to adjustment pursuant to anti-dilution provisions (the “Warrants”). The Warrants represent, when fully exercised, approximately 10.1% of shares of Common Stock outstanding at March 30, 2014 on a fully diluted basis. The exercise price of the Warrants is $4.19 per share.

The Warrant Agreement contains a cash settlement provision in the event of a change of control prior to March 31, 2018 as well as other provisions requiring the Warrants to be measured at fair value and included in other liabilities in our Consolidated Balance Sheets. We remeasure the fair value of the liability each reporting period, with changes reported in other, net non-operating income (expense). The initial fair value of the Warrants was $16,930,000. See Note 9.

In connection with the issuance of the Warrants, we entered into a Registration Rights Agreement dated as of March 31, 2014 (the “Registration Rights Agreement”). The Registration Rights Agreement requires, among other matters, that we use our commercially reasonable efforts to maintain the effectiveness for certain specified periods of a shelf registration statement related to the shares of Common Stock to be issued upon exercise of the Warrants.

Security

The Notes and the 1^st Lien Credit Facility are fully and unconditionally guaranteed on a joint and several first-priority basis by each of the Company's material domestic subsidiaries, excluding MNI, the Pulitzer Subsidiaries and TNI (the "Lee Legacy Assignors"), pursuant to a first lien guarantee and collateral agreement dated as of March 31, 2014 (the "1^st Lien Guarantee and Collateral Agreement").

The Notes, the 1^st Lien Credit Facility and the subsidiary guarantees are secured, subject to certain exceptions, priorities and limitations, by perfected security interests in all property and assets, including certain real estate, of the Lee Legacy Assignors, other than the capital stock of MNI and any property and assets of MNI (the “Lee Legacy Collateral”), on a first-priority basis, equally and ratably with all of the Lee Legacy Assignors' existing and future obligations. The Lee Legacy Collateral includes, among other things, equipment, inventory, accounts receivables, depository accounts, intellectual property and certain of their other tangible and intangible assets.

Also, the Notes and the 1^st Lien Credit Facility are secured, subject to certain exceptions, priorities and limitations in the various agreements, by first-priority security interests in the capital stock of, and other equity interests owned by, the Lee Legacy Assignors (excluding the capital stock of MNI). The Notes and 1^st Lien Credit Facility are subject to a Pari Passu Intercreditor Agreement dated March 31, 2014.

The Notes, the 1^st Lien Credit Facility and the subsidiary guarantees are also secured, subject to permitted liens, by a second-priority security interest in the property and assets of the Pulitzer Subsidiaries that become subsidiary guarantors (the "Pulitzer Assignors") other than assets of or used in the operations or business of TNI (collectively, the “Pulitzer Collateral”). In June 2015 the Pulitzer Assignors became a party to the 1^st Lien Guarantee and Collateral Agreement on a second lien basis.

Also, the Notes and the 1^st Lien Credit Facility are secured, subject to certain exceptions, priorities, and limitations in the various agreements, by second-priority security interests in the capital stock of, and other equity interests in, the Pulitzer Assignors and Star Publishing’s interest in TNI.

The 2^nd Lien Term Loan is fully and unconditionally guaranteed on a joint and several first-priority basis by the Pulitzer Assignors, pursuant to a Second Lien Guarantee and Collateral Agreement dated as of March 31, 2014 (the “2^nd Lien Guarantee and Collateral Agreement”) among the Pulitzer Assignors and the 2^nd Lien collateral agent.

Under the 2^nd Lien Guarantee and Collateral Agreement, the Pulitzer Assignors have granted (i) first-priority security interests, subject to certain priorities and limitations in the various agreements, in the Pulitzer Collateral and (ii) have granted first-priority lien mortgages or deeds of trust covering certain real estate, as collateral for the payment and performance of their obligations under the 2^nd Lien Term Loan.

Also, under the 2^nd Lien Guarantee and Collateral Agreement, the Lee Legacy Assignors have granted (i) second-priority security interests, subject to certain priorities and limitations in the various agreements, in the Lee Legacy Collateral, and (ii) have granted second-priority lien mortgages or deeds of trust covering certain real estate, as collateral for the payment and performance of their obligations under the 2^nd Lien Term Loan. Assets of, or used in the operations or business of, MNI are excluded.

The rights of each of the collateral agents with respect to the Lee Legacy Collateral and the Pulitzer Collateral are subject to customary intercreditor and intercompany agreements.

Other

In connection with the 2014 Refinancing, we capitalized $37,819,000 of debt financing costs. Amortization of debt financing costs totaled $898,000 in the 13 weeks ended December 25, 2016. Amortization of such costs is estimated to total $4,142,000 in 2017, $4,223,000 in 2018, $4,050,000 in 2019, $4,079,000 in 2020 and $4,269,000 in 2021. At December 25, 2016 ,we have $25,373,000 of unamortized debt financing costs recorded as a reduction of Long-term debt in our Consolidated Balance Sheets.

Liquidity

At December 25, 2016, after consideration of letters of credit, we have approximately $33,318,000 available for future use under our Revolving Facility. Including cash, our liquidity at December 25, 2016 totals $53,418,000. This liquidity amount excludes any future cash flows. We expect all interest and principal payments due in the next twelve months will be satisfied by existing cash and our cash flows, which will allow us to maintain an adequate level of liquidity. The Warrants, if and when exercised, would provide additional liquidity in an amount up to $25,140,000 subject to a reduction for any amounts the Company may elect to use to repay our 1^st Lien Term Loan and/or the Notes.

Final maturities of our debt have been extended to dates from December 2018 through December 2022.

There are numerous potential consequences under the Notes, 1^st Lien Credit Facility and 2^nd Lien Term Loan, if an event of default, as defined, occurs and is not remedied. Many of those consequences are beyond our control. The occurrence of one or more events of default would give rise to the right of the applicable lender(s) to exercise their remedies under the Notes, 1^st Lien Credit Facility and 2^nd Lien Term Loan, respectively, including, without limitation, the right to accelerate all outstanding debt and take actions authorized in such circumstances under applicable collateral security documents.

Our ability to operate as a going concern is dependent on our ability to remain in compliance with debt covenants and to repay, refinance or amend our debt agreements as they become due. The Notes, 1^st Lien Credit Facility and 2^nd Lien Term Loan have only limited affirmative covenants with which we are required to maintain compliance. We are in compliance with our debt covenants at December 25, 2016.

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Pension, Postretirement, and Postemployement Obligations

3 Months Ended

Dec. 25, 2016

Pension Postretirement And Postemployment Defined Benefit Plans [Abstract]

Pension and Other Postretirement Benefits Disclosure [Text Block]

PENSION, POSTRETIREMENT AND POSTEMPLOYMENT DEFINED BENEFIT PLANS

We have several noncontributory defined benefit pension plans that together cover selected employees. Benefits under the plans were generally based on salary and years of service. Effective in 2012, substantially all benefits are frozen and only a small amount of additional benefits are being accrued. Our liability and related expense for benefits under the plans are recorded over the service period of employees based upon annual actuarial calculations. Plan funding strategies are influenced by government regulations. Plan assets consist primarily of domestic and foreign corporate equity securities, government and corporate bonds, hedge fund investments and cash.

In addition, we provide retiree medical and life insurance benefits under postretirement plans at several of our operating locations. The level and adjustment of participant contributions vary depending on the specific plan. In addition, St. Louis Post-Dispatch LLC, provides postemployment disability benefits to certain employee groups prior to retirement. Our liability and related expense for benefits under the postretirement plans are recorded over the service period of active employees based upon annual actuarial calculations. We accrue postemployment disability benefits when it becomes probable that such benefits will be paid and when sufficient information exists to make reasonable estimates of the amounts to be paid.

We use a fiscal year end measurement date for all of our pension and postretirement medical plan obligations.

The net periodic postretirement cost (benefit) components for our postretirement plans are as follows:

PENSION PLANS	13 Weeks Ended
(Thousands of Dollars)	December 25 2016		December 27 2015
Service cost for benefits earned during the period	21		49
Interest cost on projected benefit obligation	1,349		1,515
Expected return on plan assets	(1,969	)	(2,174	)
Amortization of net loss	736		599
Amortization of prior service benefit	(34	)	(34	)
Pension expense (benefit)	103		(45	)
POSTRETIREMENT MEDICAL PLANS	13 Weeks Ended
(Thousands of Dollars)	December 25 2016		December 27 2015
Service cost for benefits earned during the period	3		16
Interest cost on projected benefit obligation	122		156
Expected return on plan assets	(264	)	(331	)
Amortization of net gain	(237	)	(273	)
Amortization of prior service benefit	(365	)	(365	)
Postretirement medical benefit	(741	)	(797	)

Amortization of net gains (losses) and prior service benefits are recorded as compensation in the Consolidated Statements of Income and Comprehensive Income.

Based on our forecast at December 25, 2016, we do not expect to make contributions to our pension trust and postretirement medical plans for the reminder of 2017.

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Income Taxes

3 Months Ended

Dec. 25, 2016

Income Tax Disclosure [Abstract]

Income Tax Disclosure [Text Block]

INCOME TAXES

We recorded income tax expense of $6,266,000 related to income before taxes of $18,706,000 for the 13 weeks ended December 25, 2016. For the 13 weeks ended December 27, 2015, we recorded $7,147,000 in income tax expense related to income before taxes of $18,655,000. The effective income tax rates for the 13 weeks ended December 25, 2016 and December 27, 2015 were 33.5% and 38.3%, respectively. The primary differences between these rates and the U.S. federal statutory rate of 35% are due to the effect of state income taxes, non-deductible expenses, adjustments to reserves for uncertain tax positions, including any related interest, and mark-to-market adjustments to value the Warrants.

We file a consolidated federal tax return, as well as combined and separate tax returns in approximately 27 state and local jurisdictions. We have various income tax examinations ongoing which are at different stages of completion, but generally our income tax returns have been audited or closed to audit through 2009. See Note 10 for a discussion of our tax audits.

At September 25, 2016, we had approximately $57,392,000 of state net operating loss tax benefits and a federal net operating loss carryforward of approximately $58,618,000. Due to our federal and state net operating loss carryforwards and based on historical levels of performance, we do not expect to make any significant income tax payments in the current fiscal year.

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Earnings per Common Share

3 Months Ended

Dec. 25, 2016

Earnings Loss Per Common Share [Abstract]

Earnings Per Share [Text Block]

EARNINGS PER COMMON SHARE

The following table sets forth the computation of basic and diluted earnings per common share:

	13 Weeks Ended
(Thousands of Dollars and Shares, Except Per Share Data)	December 25 2016		December 27 2015
Income attributable to Lee Enterprises, Incorporated:	12,173		11,237
Weighted average common shares	55,935		54,856
Less weighted average restricted Common Stock	(2,407	)	(1,716	)
Basic average common shares	53,528		53,140
Dilutive stock options and restricted Common Stock	1,873		718
Diluted average common shares	55,401		53,858
Earnings per common share:
Basic	0.23		0.21
Diluted	0.22		0.21

For the 13 weeks ended December 25, 2016and December 27, 2015,6,828,000 and 7,684,000 weighted average shares, respectively, were not considered in the computation of diluted earnings per common share because the exercise prices of the related stock options and Warrants were in excess of the fair market value of our Common Stock.

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Stock Ownership Plans

3 Months Ended

Dec. 25, 2016

Stock Ownership Plans [Abstract]

Disclosure of Compensation Related Costs, Share-based Payments [Text Block]

STOCK OWNERSHIP PLANS

A summary of stock option activity during the 13 weeks ended December 25, 2016 follows:

(Thousands of Dollars and Shares, Except Per Share Data)	Shares		Weighted Average Exercise Price	Weighted Average Remaining Contractual Term (Years)	Aggregate Intrinsic Value
Outstanding, September 25, 2016	1,698		2.42
Exercised	(214	)	1.52
Cancelled	(42	)	26.85
Outstanding, December 25, 2016	1,442		1.85	4.4	1,522
Exercisable, December 25, 2016	1,442		1.85	4.4	1,522

Restricted Common Stock

The table below summarizes restricted Common Stock activity during the 13 weeks ended December 25, 2016:

(Thousands of Shares, Except Per Share Data)	Shares		Weighted Average Grant Date Fair Value
Outstanding, September 27, 2016	2,462		2.74
Vested	(707	)	3.61
Granted	812		3.35
Cancelled	(2	)	1.53
Outstanding, December 25, 2016	2,565		2.70

Total unrecognized compensation expense for unvested restricted Common Stock at December 25, 2016 is $4,459,000, which will be recognized over a weighted average period of 1.9 years.

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Fair Value Measurements

3 Months Ended

Dec. 25, 2016

Fair Value Measurements [Abstract]

Fair Value Disclosures [Text Block]

FAIR VALUE MEASUREMENTS

We utilize FASB ASC Topic 820, Fair Value Measurements and Disclosures, to measure and report fair value. FASB ASC Topic 820 defines fair value, establishes a framework for measuring fair value and expands disclosures about fair value measurements. FASB ASC Topic 820 establishes a three-level hierarchy of fair value measurements based on whether the inputs to those measurements are observable or unobservable, which consists of the following levels:

Level 1 - Quoted prices for identical instruments in active markets.

Level 2 - Quoted prices for similar instruments in active markets; quoted prices for identical or similar instruments in markets that are not active; and model-derived valuations in which all significant inputs are observable in active markets.

Level 3 - Valuations derived from valuation techniques in which one or more significant inputs are unobservable.

The following methods and assumptions are used to estimate the fair value of each class of financial instruments for which it is practicable to estimate value.

The carrying amounts of cash equivalents, accounts receivable and accounts payable approximate fair value because of the short maturity of those instruments. Investments totaling $6,818,000, including our 17% ownership of the nonvoting common stock of TCT and a private equity investment, are carried at cost. As of December 31, 2016, based on the most recent data available, the approximate fair value of the private equity investment is $8,164,000, which is a level 3 fair value measurement.

The fair value of floating rate debt, which consists of our 1^st Lien Term Loan, is $84,100,000, based on an average of private market price quotations. Our fixed rate debt consists of $385,000,000 principal amount of the Notes and $130,433,000 principal amount under the 2^nd Lien Term Loan. At December 25, 2016, based on private market price quotations the fair values were $405,000,000 and $139,000,000 for the Notes and 2^nd Lien Term Loan, respectively.

As discussed more fully in Note 4, we recorded a liability for the Warrants issued in connection with the Warrant Agreement. The liability was initially measured at its fair value and we remeasure the liability to fair value each reporting period, with changes reported in other non-operating income (expense). The initial fair value of the Warrants was $16,930,000. The fair value of Warrants at December 25, 2016 and September 25, 2016 is $8,665,000and$11,760,000, respectively. Fair value is determined using the Black-Scholes option pricing model. These represent level 2 fair value measurements.

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Commitments and Contingencies

3 Months Ended

Dec. 25, 2016

Commitments And Contingent Liabilities [Abstract]

Commitments and Contingencies Disclosure [Text Block]

COMMITMENTS AND CONTINGENT LIABILITIES

Income Taxes

Commitments exclude unrecognized tax benefits to be recorded in accordance with FASB ASC Topic 740, Income Taxes. We are unable to reasonably estimate the ultimate amount or timing of cash settlements with the respective taxing authorities for such matters. See Note 6.

We file income tax returns with the Internal Revenue Service ("IRS") and various state tax jurisdictions. From time to time, we are subject to routine audits by those agencies and those audits may result in proposed adjustments. We have considered the alternative interpretations that may be assumed by the various taxing agencies, believe our positions taken regarding our filings are valid, and that adequate tax liabilities have been recorded to resolve such matters. However, the actual outcome cannot be determined with certainty and the difference could be material, either positively or negatively, to the Consolidated Statements of Operations and Comprehensive Income (Loss) in the periods in which such matters are ultimately determined. We do not believe the final resolution of such matters will be material to our consolidated financial position or cash flows.

We have various income tax examinations ongoing and at various stages of completion, but generally our income tax returns have been audited or closed to audit through 2009.

Legal Proceedings

We are involved in a variety of legal actions that arise in the normal course of business. Insurance coverage mitigates potential loss for certain of these matters. While we are unable to predict the ultimate outcome of these legal actions, it is our opinion that the disposition of these matters will not have a material adverse effect on our Consolidated Financial Statements, taken as a whole.

Multiemployer Pension Plans

One of our enterprise's bargaining units withdrew from representation, and as a result we are subject to a future claim from the multiemployer pension plan for a withdrawal liability. The amount and timing of such liability will be dependent on actions taken, or not taken, by the Company and the pension plan, as well as the future investment performance and funding status of the pension plan. Any withdrawal liability determined to be due under this plan will be funded over a period of 20 years.

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Investments in Associated Companies (Tables)

3 Months Ended

Dec. 25, 2016

Equity Method Investee- TNI [Member]

Schedule of Equity Method Investments [Line Items]

Schedule of Equity Method Investments [Table Text Block]

Summarized results of TNI are as follows:

	13 Weeks Ended
(Thousands of Dollars)	December 25 2016	December 27 2015
Operating revenue	13,314	14,782
Operating expenses	9,999	11,341
Operating income	3,315	3,441
Company's 50% share of operating income	1,658	1,721
Less amortization of intangible assets	105	105
Equity in earnings of TNI	1,553	1,616

Equity Method Investee- MNI [Member]

Schedule of Equity Method Investments [Line Items]

Schedule of Equity Method Investments [Table Text Block]

Summarized results of MNI are as follows:

	13 Weeks Ended
(Thousands of Dollars)	December 25 2016	December 27 2015
Operating revenue	17,042	17,789
Operating expenses, excluding workforce adjustments, depreciation and amortization	13,405	13,612
Depreciation and amortization	349	410
Operating income	3,288	3,767
Net income	2,272	2,358
Equity in earnings of MNI	1,136	1,183

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Goodwill and other Intangible Assets (Tables)

3 Months Ended

Dec. 25, 2016

Goodwill [Line Items]

Schedule of Goodwill [Table Text Block]

Changes in the carrying amount of goodwill are as follows:

	13 Weeks Ended
(Thousands of Dollars)	December 25 2016
Goodwill, gross amount	1,532,458
Accumulated impairment losses	(1,288,729	)
Goodwill, beginning of period	243,729
Goodwill, end of period	243,729

Schedule of Intangible Assets [Table Text Block]

Identified intangible assets consist of the following:

(Thousands of Dollars)	December 25 2016	September 25 2016
Nonamortized intangible assets:
Mastheads	23,644	23,644
Amortizable intangible assets:
Customer and newspaper subscriber lists	687,212	687,182
Less accumulated amortization	558,781	552,472
	128,431	134,710
Noncompete and consulting agreements	28,524	28,524
Less accumulated amortization	28,524	28,524
	—	—
Other intangible assets, net	152,075	158,354

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Debt (Tables)

3 Months Ended

Dec. 25, 2016

Schedule of Payments [Line Items]

Pulitzer Excess Cash Flow [Table Text Block]

ulitzer Excess Cash Flow and the related payments on the 2^nd Lien Term Loan for the previous four quarters are as follows:

For the Period Ending (Thousands of Dollars)	Pulitzer Excess Cash Flow	Payment Date	Payment Amount (not rejected)
December 27, 2015	2,864	Q2 2016	1,867
March 27, 2016	2,730	Q3 2016	525
June 26, 2016	1,583	Q4 2016	299
September 25, 2016	—	Q1 2017	—

New 1st Lien Term Loan [Member]

Schedule of Payments [Line Items]

Schedule Of Debt Payments [Table Text Block]

2017 payments made, or required to be made for the remainder of the year, under the 1^st Lien Term Loan are summarized as follows:

	13 Weeks Ended			13 Weeks Ending
(Thousands of Dollars)	December 25 2016	March 26 2017	June 25 2017	September 24 2017
Mandatory	6,250	6,250	6,250	6,250
Voluntary	11,000	—	—	—
Excess cash flow payment	70	—	—	—
	17,320	6,250	6,250	6,250

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Debt Schedule Of Debt Outstanding (Tables)

3 Months Ended

Dec. 25, 2016

Debt Instrument [Line Items]

Schedule of Long-term Debt Instruments [Table Text Block]

Debt is summarized as follows:

					Interest Rates(%)
(Thousands of Dollars)	December 25 2016		September 26 2016		December 25 2016
Revolving Facility	—		—		5.65
1st Lien Term Loan	83,984		101,304		7.25
Notes	385,000		385,000		9.50
2nd Lien Term Loan	130,433		130,863		12.00
	599,417		617,167
Unamortized debt issue costs	(25,373	)	(26,271	)
Less current maturities of long-term debt	25,000		25,070
Total long-term debt	549,044		565,826

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Debt Schedule of Debt Provisions (Tables)

3 Months Ended

Dec. 25, 2016

New Second Lien Loan [Member]

Debt Instrument [Line Items]

Debt Instrument Redemption [Table Text Block]

Period Beginning	Percentage of Principal Amount
March 31, 2014	112
March 31, 2017	106
March 31, 2018	103
March 31, 2019	100

Senior Notes [Member]

Debt Instrument [Line Items]

Debt Instrument Redemption [Table Text Block]

Period Beginning	Percentage of Principal Amount
March 15, 2018	104.75
March 15, 2019	102.38
March 15, 2020	100.00

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Pension, Postretirement, and Postemployement Obligations (Tables)

3 Months Ended

Dec. 25, 2016

Pension Postretirement And Postemployment Defined Benefit Plans [Abstract]

Schedule of Defined Benefit Plans Disclosures [Table Text Block]

The net periodic postretirement cost (benefit) components for our postretirement plans are as follows:

PENSION PLANS	13 Weeks Ended
(Thousands of Dollars)	December 25 2016		December 27 2015
Service cost for benefits earned during the period	21		49
Interest cost on projected benefit obligation	1,349		1,515
Expected return on plan assets	(1,969	)	(2,174	)
Amortization of net loss	736		599
Amortization of prior service benefit	(34	)	(34	)
Pension expense (benefit)	103		(45	)
POSTRETIREMENT MEDICAL PLANS	13 Weeks Ended
(Thousands of Dollars)	December 25 2016		December 27 2015
Service cost for benefits earned during the period	3		16
Interest cost on projected benefit obligation	122		156
Expected return on plan assets	(264	)	(331	)
Amortization of net gain	(237	)	(273	)
Amortization of prior service benefit	(365	)	(365	)
Postretirement medical benefit	(741	)	(797	)

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Earnings per Common Share (Tables)

3 Months Ended

Dec. 25, 2016

Earnings Per Share [Abstract]

Schedule of Earnings Per Share, Basic and Diluted [Table Text Block]

The following table sets forth the computation of basic and diluted earnings per common share:

	13 Weeks Ended
(Thousands of Dollars and Shares, Except Per Share Data)	December 25 2016		December 27 2015
Income attributable to Lee Enterprises, Incorporated:	12,173		11,237
Weighted average common shares	55,935		54,856
Less weighted average restricted Common Stock	(2,407	)	(1,716	)
Basic average common shares	53,528		53,140
Dilutive stock options and restricted Common Stock	1,873		718
Diluted average common shares	55,401		53,858
Earnings per common share:
Basic	0.23		0.21
Diluted	0.22		0.21

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Stock Ownership Plans (Tables)

3 Months Ended

Dec. 25, 2016

Restricted Stock [Member]

Share-based Compensation Arrangement by Share-based Payment Award [Line Items]

Disclosure of Share-based Compensation Arrangements by Share-based Payment Award [Table Text Block]

The table below summarizes restricted Common Stock activity during the 13 weeks ended December 25, 2016:

(Thousands of Shares, Except Per Share Data)	Shares		Weighted Average Grant Date Fair Value
Outstanding, September 27, 2016	2,462		2.74
Vested	(707	)	3.61
Granted	812		3.35
Cancelled	(2	)	1.53
Outstanding, December 25, 2016	2,565		2.70

Stock Options [Member]

Share-based Compensation Arrangement by Share-based Payment Award [Line Items]

Disclosure of Share-based Compensation Arrangements by Share-based Payment Award [Table Text Block]

A summary of stock option activity during the 13 weeks ended December 25, 2016 follows:

(Thousands of Dollars and Shares, Except Per Share Data)	Shares		Weighted Average Exercise Price	Weighted Average Remaining Contractual Term (Years)	Aggregate Intrinsic Value
Outstanding, September 25, 2016	1,698		2.42
Exercised	(214	)	1.52
Cancelled	(42	)	26.85
Outstanding, December 25, 2016	1,442		1.85	4.4	1,522
Exercisable, December 25, 2016	1,442		1.85	4.4	1,522

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Basis of Presentation Schedule of Less than 100% Subsidiaries (Details)	3 Months Ended
	Dec. 25, 2016
Equity Method Investee- TNI [Member]
Schedule Of Less Than 100% Owned Subsidiaries [Line Items]
Less Than 100% Owned Subsidiaries, Percentage Owned	50.00%
Equity Method Investee- MNI [Member]
Schedule Of Less Than 100% Owned Subsidiaries [Line Items]
Less Than 100% Owned Subsidiaries, Percentage Owned	50.00%
INN Partners [Member]
Schedule Of Less Than 100% Owned Subsidiaries [Line Items]
Less Than 100% Owned Subsidiaries, Percentage Owned	82.50%

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Investments in Associated Companies Summarized Financial Information (Details) - USD ($)	3 Months Ended
	Dec. 25, 2016	Dec. 27, 2015
Schedule of Equity Method Investments [Line Items]
Equity in earnings of associated companies	$ 2,689,000	$ 2,799,000
Equity Method Investee- TNI [Member]
Schedule of Equity Method Investments [Line Items]
Proceeds from Equity Method Investment, Dividends or Distributions	983,000	1,479,000
Share of TNI Operating Expenses	142,000	(119,000)
Equity Method Investment, Summarized Financial Information, Revenue	13,314,000	14,782,000
Equity Method Investment, Summarized Financial Information, Operating Expenses Excluding Depreciation, Amortization And Workforce Adjustments	9,999,000	11,341,000
Equity Method Investment, Summarized Financial Information, Operating Income	3,315,000	3,441,000
Income (Loss) From Equity Method Investments Before Amortization	1,658,000	1,721,000
Amortization Of Intangible Assets- TNI	105,000	105,000
Equity in earnings of associated companies	1,553,000	1,616,000
Finite-Lived Intangible Assets, Amortization Expense, Next Twelve Months	418,000
Finite-Lived Intangible Assets, Amortization Expense, Rolling Year Two	418,000
Finite-Lived Intangible Assets, Amortization Expense, Year Three	418,000
Finite-Lived Intangible Assets, Amortization Expense, Year Four	105,000
Equity Method Investee- MNI [Member]
Schedule of Equity Method Investments [Line Items]
Proceeds from Equity Method Investment, Dividends or Distributions	1,250,000	1,750,000
Equity Method Investment, Summarized Financial Information, Revenue	17,042,000	17,789,000
Equity Method Investment, Summarized Financial Information, Operating Expenses Excluding Depreciation, Amortization And Workforce Adjustments	13,405,000	13,612,000
Equity Method Investment, Summarized Financial Information, Depreciation And Amortization	349,000	410,000
Equity Method Investment, Summarized Financial Information, Operating Income	3,288,000	3,767,000
Equity Method Investment, Summarized Financial Information, Net Income (Loss)	2,272,000	2,358,000
Equity in earnings of associated companies	$ 1,136,000	$ 1,183,000

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Goodwill and other Intangible Assets Schedule of Goodwill (Details) $ in Thousands	Dec. 25, 2016 USD ($)
Goodwill [Line Items]
Goodwill, Gross	$ 1,532,458
Goodwill, Impaired, Accumulated Impairment Loss	$ 1,288,729

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Goodwill and other Intangible Assets Schedule of Intangible Assets (Details) - USD ($)	Dec. 25, 2016	Sep. 25, 2016
Schedule of Intangible Assets [Line Items]
Mastheads	$ 23,644,000	$ 23,644,000
Other intangible assets, net	152,075,000	158,354,000
Finite-Lived Intangible Assets, Amortization Expense, Next Twelve Months	22,908,000
Finite-Lived Intangible Assets, Amortization Expense, Rolling Year Two	16,653,000
Finite-Lived Intangible Assets, Amortization Expense, Year Three	15,624,000
Finite-Lived Intangible Assets, Amortization Expense, Year Four	15,163,000
Finite-Lived Intangible Assets, Amortization Expense, Year Five	13,251,000
Customer Lists [Member]
Schedule of Intangible Assets [Line Items]
Finite-Lived Intangible Assets, Gross	687,212,000	687,182,000
Finite-Lived Intangible Assets, Accumulated Amortization	558,781,000	552,472,000
Finite-Lived Intangible Assets, Net	128,431,000	134,710,000
Noncompete Agreements [Member]
Schedule of Intangible Assets [Line Items]
Finite-Lived Intangible Assets, Gross	28,524,000	28,524,000
Finite-Lived Intangible Assets, Accumulated Amortization	28,524,000	28,524,000
Finite-Lived Intangible Assets, Net	$ 0	$ 0

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Debt Schedule of Long-Term Debt Instruments (Details) - USD ($)	3 Months Ended
	Dec. 25, 2016	Sep. 25, 2016	Mar. 31, 2014	Mar. 30, 2014
Debt Instrument [Line Items]
Unamortized Debt Issuance Expense	$ (25,373,000)	$ (26,271,000)
Amortization of Financing Costs	898,000
Warrant liability fair value	$ 8,665,000			$ 16,930,000
Debt, Weighted Average Interest Rate	9.70%
Debt, Long-term and Short-term, Combined Amount	$ 599,417,000	617,167,000
Long-term Debt, Maturities, Repayments of Principal, Remainder of Fiscal Year	18,750,000
Long-term Debt, Maturities, Repayments of Principal in Year Two	25,000,000
Long-term Debt, Maturities, Repayments of Principal in Year Three	40,234,000
Long-term Debt, Maturities, Repayments of Principal in Year Four	0
Long-term Debt, Maturities, Repayments of Principal in Year Five	0
Long-term Debt, Maturities, Repayments of Principal after Year Five	515,433,000
Long-term Debt, Current Maturities	25,000,000	25,070,000
Long-term Debt	549,044,000	565,826,000
Liquidity	53,418,000
Future Liquidity- Warrant Exercise Proceeds	25,140,000
Revolving Line Of Credit [Member]
Debt Instrument [Line Items]
Debt, Long-term and Short-term, Combined Amount	$ 0	0
Debt Instrument, Interest Rate, Stated Percentage	5.65%
Line of Credit Facility, Remaining Borrowing Capacity	$ 33,318,000
Line of Credit [Member]
Debt Instrument [Line Items]
Debt Instrument, Face Amount	40,000,000
Senior Notes [Member]
Debt Instrument [Line Items]
Debt Instrument, Face Amount	$ 400,000,000
Debt Instrument, Interest Rate at Period End	9.50%
Debt, Long-term and Short-term, Combined Amount	$ 385,000,000	385,000,000
Debt Instrument, Interest Rate, Stated Percentage	9.50%
New 1st Lien Term Loan [Member]
Debt Instrument [Line Items]
Debt Instrument, Face Amount	$ 250,000,000
Debt, Long-term and Short-term, Combined Amount	$ 83,984,000	101,304,000
Debt Instrument, Interest Rate, Stated Percentage	7.25%
Debt Instrument, Unamortized Discount			$ 5,000,000
New Second Lien Loan [Member]
Debt Instrument [Line Items]
Debt Instrument, Face Amount	$ 150,000,000
Debt Instrument, Interest Rate at Period End	12.00%
Debt, Long-term and Short-term, Combined Amount	$ 130,433,000	$ 130,863,000
Debt Instrument, Interest Rate, Stated Percentage	12.00%
Federal Funds Rate [Member] | Revolving Line Of Credit [Member]
Debt Instrument [Line Items]
Interest Rate Margin	4.50%
Federal Funds Rate [Member] | New 1st Lien Term Loan [Member]
Debt Instrument [Line Items]
Base Interest Rate	0.50%
Interest Rate Margin	5.25%
Prime Lending Rate [Member] | New 1st Lien Term Loan [Member]
Debt Instrument [Line Items]
Base Interest Rate	2.00%
30 Day LIBOR [Member] | Revolving Line Of Credit [Member]
Debt Instrument [Line Items]
Interest Rate Margin	5.50%
30 Day LIBOR [Member] | Line of Credit [Member]
Debt Instrument [Line Items]
Base Interest Rate	0.50%
30 Day LIBOR [Member] | New 1st Lien Term Loan [Member]
Debt Instrument [Line Items]
Base Interest Rate	1.00%
Interest Rate Margin	6.25%
Until March 31, 2017 [Member]
Debt Instrument [Line Items]
Debt Instrument, Redemption Price, Percentage of Principal Amount Redeemed	112.00%
Prior to March 15, 2018 [Member]
Debt Instrument [Line Items]
Debt Instrument, Redemption Price, Percentage of Principal Amount Redeemed	109.50%
March 16, 2018 through March 15, 2019 [Member]
Debt Instrument [Line Items]
Debt Instrument, Redemption Price, Percentage of Principal Amount Redeemed	104.75%
March 15, 2019 through March 14, 2020 [Member]
Debt Instrument [Line Items]
Debt Instrument, Redemption Price, Percentage of Principal Amount Redeemed	102.38%
After March 15, 2020 [Member]
Debt Instrument [Line Items]
Debt Instrument, Redemption Price, Percentage of Principal Amount Redeemed	100.00%
March 31, 2017 through March 31, 2018 [Member]
Debt Instrument [Line Items]
Debt Instrument, Redemption Price, Percentage of Principal Amount Redeemed	0.00%
March 31, 2018 through March 31, 2019 [Member]
Debt Instrument [Line Items]
Debt Instrument, Redemption Price, Percentage of Principal Amount Redeemed	103.00%
After March 31, 2019 [Member]
Debt Instrument [Line Items]
Debt Instrument, Redemption Price, Percentage of Principal Amount Redeemed	0.00%
Mandatory Payment [Member] | 1st Lien Agreement [Member]
Debt Instrument [Line Items]
Repayments of Long-term Debt	$ 6,250,000

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Debt Schedule of Payments (Details) - USD ($)

3 Months Ended

Sep. 24, 2017

Jun. 25, 2017

Mar. 26, 2017

Dec. 25, 2016

Sep. 25, 2016

Jun. 26, 2016

Mar. 27, 2016

Dec. 27, 2015

Schedule Of Debt Payments [Line Items]

Amortization of Financing Costs

$ 898,000

Debt, Long-term and Short-term, Combined Amount

599,417,000

$ 617,167,000

Repayments of Long-term Debt

17,750,000

$ 26,351,000

Gains (Losses) on Extinguishment of Debt

0

525,000

Senior Notes [Member]

Schedule Of Debt Payments [Line Items]

Debt, Long-term and Short-term, Combined Amount

$ 385,000,000

385,000,000

New 1st Lien Term Loan [Member]

Schedule Of Debt Payments [Line Items]

Schedule Of Debt Payments [Table Text Block]

2017 payments made, or required to be made for the remainder of the year, under the 1^st Lien Term Loan are summarized as follows:

	13 Weeks Ended			13 Weeks Ending
(Thousands of Dollars)	December 25 2016	March 26 2017	June 25 2017	September 24 2017
Mandatory	6,250	6,250	6,250	6,250
Voluntary	11,000	—	—	—
Excess cash flow payment	70	—	—	—
	17,320	6,250	6,250	6,250

Debt, Long-term and Short-term, Combined Amount

$ 83,984,000

101,304,000

Repayments of Long-term Debt

$ 6,250,000

$ 6,250,000

$ 6,250,000

17,320,000

Mandatory Payment [Member] | New 1st Lien Term Loan [Member]

Schedule Of Debt Payments [Line Items]

Repayments of Long-term Debt

6,250,000

6,250,000

6,250,000

6,250,000

Voluntary Payment [Member] | New 1st Lien Term Loan [Member]

Schedule Of Debt Payments [Line Items]

Repayments of Long-term Debt

0

0

0

11,000,000

Excess Cash Flow Sweep [Member] | 2nd Lien Agreement [Member]

Schedule Of Debt Payments [Line Items]

Repayments of Long-term Debt

930,000.00

0.00

$ 299,000.00

$ 525,000.00

1,867,000.00

Pulitzer Excess Cash Flow

$ 0.00

$ 15.83

$ 27.30

$ 28.64

Excess Cash Flow Sweep [Member] | New 1st Lien Term Loan [Member]

Schedule Of Debt Payments [Line Items]

Repayments of Long-term Debt

$ 0

$ 0

$ 0

$ 70,000

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Debt Schedule Of Financing Fees (Details) - USD ($)	3 Months Ended
	Dec. 25, 2016	Dec. 27, 2015	Sep. 25, 2016	Mar. 31, 2014	Mar. 30, 2014
Schedule Of Financing Fees [Line Items]
Class of Warrant or Right, Outstanding	6,000,000
Unamortized Debt Issuance Expense	$ 25,373,000		$ 26,271,000
Amortization Of Present Value Discount- Current Fiscal Year	4,142,000
Amortization Of Present Value Discount- Next Fiscal Year	4,223,000
Amortization Of Present Value Discount- Year 3	4,050,000
Amortization Of Present Value Discount- Year 4	4,079,000
Amortization Of Present Value Discount- Year 5	$ 4,269,000
Investment Warrants, Exercise Price	$ 4.19
Warrant liability fair value	$ 8,665,000				$ 16,930,000
Gains (Losses) on Extinguishment of Debt	$ 0	$ (525,000)
New 1st Lien Term Loan [Member]
Schedule Of Financing Fees [Line Items]
Debt Instrument, Unamortized Discount				$ 5,000,000

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Pension, Postretirement, and Postemployement Obligations (Details) - USD ($) $ in Thousands	3 Months Ended
	Dec. 25, 2016	Dec. 27, 2015
Defined Benefit Plans and Other Postretirement Benefit Plans Table Text Block [Line Items]
Pension Contributions	$ 0	$ 744
Pension Plans, Defined Benefit [Member]
Defined Benefit Plans and Other Postretirement Benefit Plans Table Text Block [Line Items]
Defined Benefit Plan, Service Cost	21	49
Defined Benefit Plan, Interest Cost	1,349	1,515
Defined Benefit Plan, Expected Return on Plan Assets	(1,969)	(2,174)
Defined Benefit Plan, Amortization of Net Gains (Losses)	736	599
Defined Benefit Plan, Amortization of Net Prior Service Cost (Credit)	34	34
Defined Benefit Plan, Net Periodic Benefit Cost	103	(45)
Other Postretirement Benefit Plans, Defined Benefit [Member]
Defined Benefit Plans and Other Postretirement Benefit Plans Table Text Block [Line Items]
Defined Benefit Plan, Estimated Future Employer Contributions in Current Fiscal Year	0
Defined Benefit Plan, Service Cost	3	16
Defined Benefit Plan, Interest Cost	122	156
Defined Benefit Plan, Expected Return on Plan Assets	(264)	(331)
Defined Benefit Plan, Amortization of Net Gains (Losses)	(237)	(273)
Defined Benefit Plan, Amortization of Net Prior Service Cost (Credit)	365	365
Defined Benefit Plan, Net Periodic Benefit Cost	$ (741)	$ (797)

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Income Taxes (Details) - USD ($)	3 Months Ended
	Dec. 25, 2016	Sep. 25, 2016	Dec. 27, 2015
Income tax expense (benefit)	$ 6,266,000		$ 7,147,000
Income (Loss) from Continuing Operations before Income Taxes, Domestic	$ 18,706,000		$ 18,655,000
Effective Income Tax Rate Reconciliation, Percent	33.50%		38.30%
Operating Loss Carryforwards		$ 57,392,000
Federal Net Operating Loss		$ 58,618,000

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Earnings per Common Share (Details) - USD ($) $ / shares in Units, $ in Thousands	3 Months Ended
	Dec. 25, 2016	Dec. 27, 2015
Earnings Per Share Disclosure [Line Items]
Income (loss) attributable to Lee Enterprises, Incorporated	$ 12,173	$ 11,237
Weighted Average Number of Shares Outstanding, Basic [Abstract]
Weighted Average Common Shares	55,935,000	54,856,000
Less non-vested restricted Common Stock	(2,407,000)	(1,716,000)
Basic average common shares	53,528,000	53,140,000
Weighted Average Number of Shares Outstanding, Diluted [Abstract]
Weighted Average Number Diluted Shares Outstanding Adjustment	1,873,000	718,000
Weighted Average Number of Shares Outstanding, Diluted	55,401,000	53,858,000
Earnings Per Share, Basic	$ 0.23	$ 0.21
Diluted	$ 0.22	$ 0.21
Antidilutive Securities Excluded from Computation of Earnings Per Share, Amount	6,828,000	7,684,000

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Stock Ownership Plans (Details) $ / shares in Units, shares in Thousands	3 Months Ended
	Dec. 25, 2016 USD ($) $ / shares shares
Restricted Stock [Member]
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Employee Service Share-based Compensation, Nonvested Awards, Compensation Not yet Recognized, Stock Options | $	$ 4,459,000
Share-based Compensation Arrangement by Share-based Payment Award, Options, Grants in Period, Gross | shares	812
Share-based Compensation Arrangements by Share-based Payment Award, Options, Grants in Period, Weighted Average Exercise Price | $ / shares	$ 3.35
Share-based Compensation Arrangement by Share-based Payment Award, Options, Outstanding, Number | shares	2,462
Share-based Compensation Arrangement by Share-based Payment Award, Options, Expirations in Period | shares	(2)
Share-based Compensation Arrangements by Share-based Payment Award, Options, Forfeitures in Period, Weighted Average Exercise Price | $ / shares	$ 1.53
Share-based Compensation Arrangement by Share-based Payment Award, Options, Outstanding, Number | shares	2,565
Share-based Compensation Arrangement by Share-based Payment Award, Options, Outstanding, Weighted Average Exercise Price | $ / shares	$ 2.74
Share-based Compensation Arrangement by Share-based Payment Award, Options, Outstanding, Weighted Average Exercise Price | $ / shares	$ 2.70
Employee Service Share-based Compensation, Nonvested Awards, Total Compensation Cost Not yet Recognized, Period for Recognition	1 year 10 months 24 days
Share-based Compensation Arrangement by Share-based Payment Award, Options, Exercises in Period | shares	(707)
Share-based Compensation Arrangements by Share-based Payment Award, Options, Other Share Increase (Decrease) in Period, Weighted Average Exercise Price | $ / shares	$ 0
Stock Options [Member]
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Share-based Compensation Arrangement by Share-based Payment Award, Options, Outstanding, Weighted Average Remaining Contractual Term	4 years 4 months 24 days
Share-based Compensation Arrangement by Share-based Payment Award, Options, Vested and Expected to Vest, Outstanding, Weighted Average Remaining Contractual Term	4 years 4 months 24 days
Share-based Compensation Arrangement by Share-based Payment Award, Options, Outstanding, Number | shares	1,698
Share-based Compensation Arrangement by Share-based Payment Award, Options, Expirations in Period | shares	(42)
Share-based Compensation Arrangement by Share-based Payment Award, Options, Outstanding, Number | shares	1,442
Share-based Compensation Arrangement by Share-based Payment Award, Options, Vested and Expected to Vest, Outstanding, Number | shares	1,442
Share-based Compensation Arrangement by Share-based Payment Award, Options, Outstanding, Weighted Average Exercise Price | $ / shares	$ 2.42
Share-based Compensation Arrangements by Share-based Payment Award, Options, Expirations in Period, Weighted Average Exercise Price | $ / shares	26.85
Share-based Compensation Arrangement by Share-based Payment Award, Options, Outstanding, Weighted Average Exercise Price | $ / shares	1.85
Share-based Compensation Arrangement by Share-based Payment Award, Options, Vested and Expected to Vest, Outstanding, Weighted Average Exercise Price | $ / shares	$ 1.85
Share-based Compensation Arrangement by Share-based Payment Award, Options, Outstanding, Intrinsic Value | $	$ 1,522,000
Share-based Compensation Arrangement by Share-based Payment Award, Options, Exercisable, Intrinsic Value | $	$ 1,522,000
Employee Service Share-based Compensation, Nonvested Awards, Total Compensation Cost Not yet Recognized, Period for Recognition	3 months 18 days
Share-based Compensation Arrangement by Share-based Payment Award, Options, Exercises in Period | shares	(214)
Share-based Compensation Arrangements by Share-based Payment Award, Options, Exercises in Period, Weighted Average Exercise Price | $ / shares	$ 1.52

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Fair Value Measurements Fair Value Measurements (Details) - USD ($)	Dec. 25, 2016	Sep. 25, 2016	Mar. 30, 2014
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Debt, Long-term and Short-term, Combined Amount	$ 599,417,000	$ 617,167,000
Warrant liability fair value	8,665,000		$ 16,930,000
1st Lien Agreement [Member]
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Long-term Debt, Fair Value	84,100,000
Senior Notes [Member]
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Long-term Debt, Fair Value	405,000,000
Debt, Long-term and Short-term, Combined Amount	385,000,000	385,000,000
New Second Lien Loan [Member]
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Debt, Long-term and Short-term, Combined Amount	130,433,000	$ 130,863,000
2nd Lien Agreement [Member]
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Long-term Debt, Fair Value	$ 139,000,000

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Fair Value Measurements Fair Value Measurements Not Practicable (Details) - USD ($)	Dec. 25, 2016	Sep. 25, 2016
Fair Value, Estimate Not Practicable, Financial Statement Captions [Line Items]
Fair Value, Estimate Not Practicable, Investments	$ 6,818,000
Debt, Long-term and Short-term, Combined Amount	$ 599,417,000	$ 617,167,000