## ITEMGLYPH<160>7A.GLYPH<160>QUANTITATIVEGLYPH<160>ANDGLYPH<160>QUALITATIVEGLYPH<160>DISCLOSURESGLYPH<160>ABOUTGLYPH<160>MARKETGLYPH<160>RISK 

Our market risk is principally associated with the following: 

• We do not have interest rate risk related to our debt because, as of December 28, 2014, our portfolio does not include variable-rate debt. 

• Newsprint is a commodity subject to supply and demand market conditions. We have equity investments in two paper mills, which provide a substantial hedge against price volatility. The cost of raw materials, of which newsprint expense is a major component, represented approximately 6% and 7% of our total operating costs in 2014 and 2013, respectively. Based on the number of newsprint tons consumed in 2014 and 2013, a $10 per ton increase in newsprint prices would have resulted in additional newsprint expense of $1.1 million (pre- tax) in 2014 and $1.2 million (pre-tax) in 2013, but would also result in improved performance in our joint ventures. 

• The discount rate used to measure the benefit obligations for our qualified pension plans is determined by using the Ryan ACM Curve, which provides rates for the bonds included in the curve and allows adjustments for certain outliers (e.g., bonds on “watch”). Broad equity and bond indices are used in the determination of the expected long term rate of return on pension plan assets. Therefore, interest rate fluctuations and volatility of the debt and equity markets can have a significant impact on asset values, the funded status of our pension plans and future anticipated contributions. See “Item 7 — Management’s Discussion and Analysis of Financial Condition and Results of Operations — Pensions and Other Postretirement Benefits.” 

• A significant portion of our employees are unionized and our results could be adversely affected if future labor negotiations or contracts were to further restrict our ability to maximize the efficiency of our operations. In addition, if we are unable to negotiate labor contracts on reasonable terms, or if we were to experience labor unrest or other business interruptions in connection with labor negotiations or otherwise, our ability to produce and deliver our products could be impaired. 

See Notes 5, 6, 9 and 18 of the Notes to the Consolidated Financial Statements. 

