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8-K - FORM 8-K - BELO CORP | d78700e8vk.htm |
Exhibit 99.1
FOR IMMEDIATE RELEASE
Monday, January 3, 2011
3:30 P.M. CST
Monday, January 3, 2011
3:30 P.M. CST
BELO CORP. (BLC) COMPLETES PENSION PLAN SPLIT
DALLAS Belo Corp. (NYSE: BLC), one of the nations largest pure-play, publicly-traded
television companies, announced today that it has completed the split of The G. B. Dealey
Retirement Pension Plan (Pension Plan or Plan) with A. H. Belo Corporation (A. H. Belo). On
October 6, 2010, Belo Corp. and A. H. Belo agreed to split the Pension Plan into
separately-sponsored plans following the spin-off in February 2008 of Belo Corp.s newspaper
businesses and related assets into a separate publicly-traded company, A. H. Belo.
Benefit liabilities and assets allocable to the approximately 5,100 current and former
employee participants of A. H. Belo and its newspaper businesses were transferred in accordance
with government regulations to two new defined benefit pension plans created, sponsored and managed
by or on behalf of A. H. Belo, and the new A. H. Belo plans are now solely responsible for paying
those benefits. A final assessment and reconciliation of the assets and liabilities transferred
will be completed by the end of the second quarter of 2011 based on final January 1, 2011 data.
The benefit liabilities and assets allocable to current and former employee participants of
Belo Corp. and its television businesses continue to be held by the existing Pension Plan sponsored
and managed by or on behalf of Belo Corp. The split of the Plan does not change the amount of the
benefits any participant has accrued or is currently receiving.
For plan years starting on and after January 1, 2011, Belo Corp. and A. H. Belo are each
solely responsible for making contributions to their respective plans. Belo Corp.s pension
contributions for full year 2011 are currently expected to be around $16 million.
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The G. B. Dealey Retirement Pension Plan Split
January 3, 2011
Page Two
January 3, 2011
Page Two
For Belo Corp., the pension split transaction will be treated as a settlement of a portion of
the Pension Plan liability for accounting purposes. Under settlement accounting, the pension split
is expected to result in a significant reduction to Belo Corp.s net unfunded pension liability,
with an associated reduction in pension-related deferred tax assets and a significant increase in
the Companys total shareholders equity. In addition, Belo Corp.s future annual pension expense
is expected to be significantly less than if the Plan were not split.
Belo Corp. currently expects to report a non-cash loss associated with the split of the
Pension Plan in the first quarter of 2011 in the range of $19 to $23 million with an associated tax
benefit in the range of $5 to $7 million; however, the actual amount of the non-cash loss and
associated tax benefit is subject to change and may be more or less than these ranges depending on
several factors, including differences in the Companys current estimates related to asset
performance, the discount rate, contributions and benefit payments.
The non-cash loss has two primary components: a settlement gain related to the transfer to A.
H. Belo of its portion of the net unfunded pension liability and a settlement loss related to the
immediate recognition, upon the transfer of the Plans assets and liabilities, of previously
unrecognized actuarial pension losses. These unrecognized losses were previously recorded as part
of the Companys accumulated other comprehensive income. The non-cash loss, before taxes, will be
shown on a separate line within operating costs and expenses on the Companys Statement of
Operations.
About Belo Corp.
Belo Corp. (NYSE: BLC), one of the nations largest pure-play, publicly-traded television
companies, owns and operates 20 television stations (nine in the top 25 markets) and their
associated Web sites. Belo stations, which include affiliations with ABC, CBS, NBC, FOX, and the
CW, reach more than 14 percent of U.S. television households in 15 highly attractive markets. Belo
stations rank first or second in nearly all of their local markets. Additional information is
available at www.belo.com or by contacting Paul Fry, vice president/Investor Relations & Treasury
Operations, at 214-977-6835.
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The G. B. Dealey Retirement Pension Plan Split
January 3, 2011
Page Three
January 3, 2011
Page Three
Statements in this communication concerning Belos business outlook or future economic
performance, anticipated profitability, revenues, expenses, capital expenditures, investments,
future financings, impairments, pension matters, and other financial and non-financial items that
are not historical facts, are forward-looking statements as the term is defined under applicable
federal securities laws. Forward-looking statements are subject to risks, uncertainties and other
factors that could cause actual results to differ materially from those statements.
Such risks, uncertainties and factors include, but are not limited to, uncertainties regarding
the costs, consequences (including tax consequences) and other effects of Belos spin-off
distribution of its newspaper businesses and related assets to
A. H. Belo and the associated agreements between Belo and A. H. Belo relating to various matters;
changes in capital market conditions and prospects, and other factors such as changes in
advertising demand, interest rates and programming and production costs; changes in viewership
patterns and demography, and actions by Nielsen; changes in the network-affiliate business model
for broadcast television; technological changes, and the development of new systems to distribute
television and
other audio-visual content; changes in the ability to secure, and in the terms of, carriage of Belo
programming on cable, satellite, telecommunications and other program distribution methods;
development of Internet commerce; industry cycles; changes in
pricing or other actions by competitors and suppliers; Federal Communications Commission and other
regulatory, tax and legal changes; adoption of new accounting standards or changes in existing
accounting standards by the Financial Accounting Standards Board or other accounting
standard-setting bodies or authorities; the effects of Belo acquisitions, dispositions, co-owned
ventures, and investments; pension plan matters; general economic conditions; and significant armed
conflict, as well as other risks detailed in Belos other public disclosures and filings with the
SEC including Belos Annual Report on Form 10-K.
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