Discontinued Operations (Tables)

6 Months Ended

Jun. 29, 2014

Discontinued Operations and Disposal Groups [Abstract]

Discontinued Operations, Unaudited Summarized Results

Summarized results of the Company’s discontinued operations and the impact of associated Publishing Spin-off adjustments are as follows (in thousands):

	Three Months Ended  June 29, 2014			Six Months Ended  June 29, 2014
Operating revenues	$	419,501		$	825,611
Operating profit	29,128			53,215
Loss on equity investments, net	(294		)	(629		)
Interest expense (1)	(2,827		)	(5,610		)
Gain on investment transaction (2)	1,484			1,484
Reorganization items, net	1			(8		)
Income before income taxes	27,492			48,452
Income tax expense (3)	11,652			20,011
Income from discontinued operations, net of taxes	$	15,840		$	28,441

(1) In connection with the Publishing Spin-off on August 4, 2014, the Company received a $275 million cash dividend from Tribune Publishing utilizing borrowings of $350 million under a senior term loan facility entered into by Tribune Publishing prior to the Publishing Spin-off. The full amount of the $275 million cash dividend was used to permanently repay $275 million of outstanding borrowings under the Company’s Term Loan Facility (as defined and described in Note 6). Interest expense associated with the Company’s outstanding debt was allocated to discontinued operations based on the ratio of the $275 million cash dividend received from Tribune Publishing to the total outstanding indebtedness under the outstanding credit facilities in effect in each respective period prior to the Publishing Spin-off and totaled $3 million and $6 million for three and six months ended June 29, 2014, respectively.

(2) Gain on investment transaction consists of the $1 million gain related to the remeasurement of Tribune Publishing’s investment in McClatchy/Tribune Information Services (“MCT”) as a result of the acquisition of the remaining 50% interest in MCT during the second quarter of 2014.

(3) The effective tax rate on pretax income from discontinued operations was 42.4% and 41.3% for the three and six months ended June 29, 2014, respectively. This rate differs from the U.S. federal statutory rate of 35% primarily due to state income taxes (net of federal benefit) and the impact of certain nondeductible transaction costs.