Global Value Investing

[throwerw]

I think about a few things for this. one, they have real estate that has been held at cost less depreciation over a long period of time for all of their newspaper headquarters. i think this value might actually cover the pension obligations in full. when they sold their miami headquarters a couple of years ago, the proceeds went into the pension fund.

the other thing is, the discount rate used to calculate the npv of pension fund liabilities is historically low due to the low interest rate environment. as the fed raises rates, i think this liability could shrink significantly.

i wonder if they could replace some higher interest rate debt with much cheaper mortgage debt backed by the properties.