mainly due to new hires related to our digital initiatives and lower capitalized salary costs, offset by the additional week in 2012. 

## Selling, General and Administrative Costs 

Selling, general and administrative costs increased in 2014 compared with 2013 primarily due to severance expense associated with workforce reductions as well as higher compensation and benefits (approximately $58 million) and promotion costs (approximately $7 million), offset by lower distribution costs ($14 million). Benefits expense was higher mainly due to higher retirement costs. Promotion costs were higher mainly due to the launch of our new digital products and print circulation marketing. Lower distribution costs were mainly due to fewer print copies produced and transportation efficiency. 

Selling, general and administrative costs decreased in 2013 compared with 2012 primarily due to lower pension expense (approximately $18 million) and salaries and wage expenses (approximately $10 million) offset by higher other compensation costs (approximately $13 million). Compensation costs increased primarily due to new hires related to digital initiatives and annual salary merit increases. 

## Other Items 

## Early Termination Charge 

During 2014, we recorded a $2.6 million charge for the early termination of a distribution agreement, which we expect will result in distribution cost savings for the Company in future periods. 

## Reserve for Uncertain Tax Positions 

During 2014, we recorded a $21.1 million income tax benefit primarily due to a reduction in the Company’s reserve for uncertain tax positions. 

## Pension Settlement Charges 

As part of our strategy to reduce our pension obligations and the resulting volatility of our overall financial condition, during 2014, 2013 and 2012, we offered lump-sum payments to certain former employees participating in both our qualified and non-qualified pension plans. Each lump-sum payment offer resulted in pension settlement charges due to the acceleration of the recognition of the accumulated unrecognized actuarial loss. 

## 2014 

In the second quarter of 2014, we recorded a $9.5 million pension settlement charge in connection with lump- sum payments made to certain former employees who participated in certain non-qualified pension plans. These lump-sum payments totaled approximately $24 million and were paid out of Company cash. The effect of this lump- sum payment offer was to reduce our pension obligations by approximately $32 million. 

## 2013 

In the fourth quarter of 2013, we recorded a $3.2 million pension settlement charge in connection with lump- sum payments made to certain former employees who participated in certain non-qualified pension plans. These lump-sum payments totaled approximately $11 million and were paid out of Company cash. The effect of this lump- sum payment offer was to reduce our pension obligations by approximately $13 million. 

## 2012 

In the fourth quarter of 2012, we recorded a $47.7 million pension settlement charge in connection with lump- sum payments made to certain former employees who participated in The New York Times Companies Pension Plan. 

These lump-sum payments totaled approximately $112 million and were paid out of the existing assets of the plan. 

The effect of this lump-sum payment offer was to reduce our pension obligations by approximately $30 million. 

## Multiemployer Pension Plan Withdrawal Expense 

Over the past few years, certain events, such as amendments to various collective bargaining agreements and the sales of the New England Media Group and the Regional Media Group, resulted in withdrawals from multiemployer pension plans. These actions, along with a reduction in covered employees, have resulted in us estimating withdrawal liabilities to certain multiemployer pension plans for our proportionate share of any unfunded vested benefits. 

