'Dollar Menu' sparks McDonald's rebound









McDonald's took Wall Street by surprise Monday morning, with a November same-store sales report that beat expectations and showed particular strength in the U.S. business.


The news follows a weak performance in October that had some investors speculating about the future of the world's largest restaurant company.


The Oak Brook-based burger giant reported U.S. same-store sales up 2.5 percent on the strength of its breakfast business, value offerings, beverages and limited-time offers like the cheddar bacon onion sandwich. In Europe, same-store sales grew 1.4 percent, and 0.6 percent in the chain's Asia/Pacific, Middle East and Africa division.








Overall, same-store sales increased 2.4 percent, beating various expectations for a roughly flat performance.


McDonald's has taken a tough stance on slipping U.S. sales as revived rivals like Wendy's and Burger King crank out new premium and value products. Days after releasing a report that showed October's rare drop in monthly same-store sales, McDonald's said its U.S. president, Jan Fields, had resigned and would be replaced by Jeff Stratton, who had been the company's global restaurant officer.


"We are strengthening our focus on the global priorities that are most impactful to our customers — optimizing our menu, modernizing the customer experience and broadening accessibility to our brand to move our business forward," McDonald's CEO Don Thompson said in a statement.


While the sales report is likely to be a boost for the fast-food chain, investors don't expect company performance to return to normal levels until early 2013.


"One month does not a trend make … but it's a nice sign to see them rebound after a horrible October," ITG Investment Research analyst Steve West said.


Analysts expect volatile industry sales in the coming quarters as countries around the world grapple with economic woes and high unemployment. Profits could get squeezed as diners shop around for deals and restaurants respond by keeping prices down.


"We are concerned about the margin outlook in this more promotional environment," said Lazard Capital Markets analyst Matthew DiFrisco.


McDonald's "ramped up its value messaging, focusing heavily on the Dollar Menu to help drive traffic," Jefferies & Co restaurant analyst Andy Barish said in a research note.


The company has been promoting both the Dollar Menu and its Extra Value Menu, which includes offerings like 20 Chicken McNuggets for $4.99, to lure diners.


Baird analyst David Tarantino raised his fourth-quarter earnings estimate by a penny per share Monday morning following the sales announcement. He wrote that while company performance "could remain soft" through the first quarter, "the November sales report supports our thesis that McDonald's can achieve better performance in 2013 as a whole, with results aided by planned initiatives (including increased emphasis on value plus premium offerings across markets), fewer cost pressures, and less negative currency translation."


McDonald's shares closed up 93 cents, or 1 percent, at $89.41.


Reuters contributed.


eyork@tribune.com


Twitter @emilyyork





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Off-duty police officer shot













A police command center vehicle at the scene of the shooting.


A police command center vehicle at the scene of the shooting.
(Adam Sege/Chicago Tribune / December 10, 2012)




















































An off-duty Chicago police officer was shot multiple times during an attempted robbery early Monday morning, authorities said.

The shooting took place about 12:30 a.m. in the 63 hundred block of South Nashville, Chicago Police Department news Affairs Officer Hector Alfaro said.

The officer was rushed to a local hospital, where his condition was stabilized, Alfaro said.

A neighbor said the off-duty officer was speaking with police, leaning on a squad car, following the shooting.





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HTC still tripping Samsung up in Windows Phone race






It is not clear that Samsung (005930) even cares — but HTC (2498) continues outmaneuvering its far bigger rival when it comes to Windows Phones. The budget HTC Windows Phone 8S is no available from UK operator Three starting at the notably low £17 per month contract price. This is about half of what the monthly contract price of Samsung’s ATIV S Windows Phone model is expected to cost in the UK. Once it finally arrives. Possibly during the last week of the year. There is no firm word on when ATIV S might arrive on AT&T (T) and Verizon (VZ) at this point.


So not only did Samsung miss the U.S. and European Christmas sales seasons completely with its first Windows Phone 8 device, HTC actually managed to get both the high-end Windows Phone 8X and the budget 8S out before Christmas in some key markets. And Three now actually seems to be giving robust marketing support for HTC’s Windows Phone devices. They are featured prominently on the website and 8X buyers get a free Windows Pro upgrade for their PCs.






It is worth noting that the Windows Phone 8S looks very competitive in the UK prepaid market with a £180 price tag at Three. The Samsung Galaxy S Advance  is £270 and Nokia’s (NOK) Lumia 710 is £200.


HTC recently started looking like Jessica Biel — too bland and too expensive — but with the 8S, it might be getting some of its European budget groove back. It is now starting to look like the November sales momentum HTC just showed will extend to December.


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Wireless News Headlines – Yahoo! News


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Half a century on, Rolling Stones rock Brooklyn






NEW YORK (Reuters) – Fifty years since their first London jam sessions, the Rolling Stones kicked off the U.S. leg of a brief anniversary tour with a vibrant show in New York on Saturday that belied their years – wrinkles and nostalgia aside.


Drummers wearing gorilla masks warmed up the crowd packed into Brooklyn’s Barclays Center as black-clad women swung their long tresses in rhythm.






Mick Jagger pranced, shimmied and howled his way through the 2-1/2 hour show, pausing to reminisce about the band’s history and its first New York concert at Carnegie Hall in 1964.


For a group whose early years were punctuated by quarrels and occasional brushes with the law, the biggest controversy ahead of Saturday’s show was the price of seats – up to $ 800, and as much as 10 times that amount on websites offering last-minute tickets.


In those days, milk was cheaper and “tickets to the Rolling Stones was – well, I’m not going to go there,” Jagger acknowledged.


The band’s last major tour was in 2007 and the latest reunion almost didn’t happen, owing in part to a spat between Jagger and guitarist Keith Richards over comments Richards made about the singer in a 2010 autobiography.


Richards joked in a recent interview: “We can’t get divorced – we’re doing it for the kids.”


A tribute video opened Saturday’s proceedings featuring celebrities heaping praise on the band.


“They’re great songs to do bad things to,” said actor Johnny Depp. “Just how skinny they all are… It really, really pisses me off,” said actress Cate Blanchett.


The Stones – average age 68 – ripped through 20 hits that began with “Get Off of My Cloud” and closed with “Sympathy for the Devil” and an encore of “You Can’t Always Get What You Want”, “Jumping Jack Flash” and “(I Can’t Get No) Satisfaction”.


Women in the crowd opened their arms wide as Jagger, wearing a silver sequined jacket, strutted along the horseshoe-shaped stage for “I Wanna Be Your Man”, a Beatles tune. The band was then joined by R&B singer Mary J. Blige for “Gimme Shelter”.


“People say ‘why do you keep doing this?’” Jagger told the crowd. He thanked fans for buying records and “generally being amazing for the last 50 years.”


The Stones started their brief diamond jubilee tour in London and are due to play twice in Newark, New Jersey.


Fans said it could be the last chance for New Yorkers to see the band live.


“It’s the only concert I wanted to see before I die,” said Lucy Webley, 33.


(Editing by Tom Pfeiffer)


Music News Headlines – Yahoo! News


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A Breakthrough Against Leukemia Using Altered T-Cells





PHILIPSBURG, Pa. — Emma Whitehead has been bounding around the house lately, practicing somersaults and rugby-style tumbles that make her parents wince.




It is hard to believe, but last spring Emma, then 6, was near death from leukemia. She had relapsed twice after chemotherapy, and doctors had run out of options.


Desperate to save her, her parents sought an experimental treatment at the Children’s Hospital of Philadelphia, one that had never before been tried in a child, or in anyone with the type of leukemia Emma had. The experiment, in April, used a disabled form of the virus that causes AIDS to reprogram Emma’s immune system genetically to kill cancer cells.


The treatment very nearly killed her. But she emerged from it cancer-free, and about seven months later is still in complete remission. She is the first child and one of the first humans ever in whom new techniques have achieved a long-sought goal — giving a patient’s own immune system the lasting ability to fight cancer.


Emma had been ill with acute lymphoblastic leukemia since 2010, when she was 5, said her parents, Kari and Tom. She is their only child.


She is among just a dozen patients with advanced leukemia to have received the experimental treatment, which was developed at the University of Pennsylvania. Similar approaches are also being tried at other centers, including the National Cancer Institute and Memorial Sloan-Kettering Cancer Center in New York.


“Our goal is to have a cure, but we can’t say that word,” said Dr. Carl June, who leads the research team at the University of Pennsylvania. He hopes the new treatment will eventually replace bone-marrow transplantation, an even more arduous, risky and expensive procedure that is now the last hope when other treatments fail in leukemia and related diseases.


Three adults with chronic leukemia treated at the University of Pennsylvania have also had complete remissions, with no signs of disease; two of them have been well for more than two years, said Dr. David Porter. Four adults improved but did not have full remissions, and one was treated too recently to evaluate. A child improved and then relapsed. In two adults, the treatment did not work at all. The Pennsylvania researchers were presenting their results on Sunday and Monday in Atlanta at a meeting of the American Society of Hematology.


Despite the mixed results, cancer experts not involved with the research say it has tremendous promise, because even in this early phase of testing it has worked in seemingly hopeless cases. “I think this is a major breakthrough,” said Dr. Ivan Borrello, a cancer expert and associate professor of medicine at the Johns Hopkins University School of Medicine.


Dr. John Wagner, the director of pediatric blood and marrow transplantation at the University of Minnesota, called the Pennsylvania results “phenomenal” and said they were “what we’ve all been working and hoping for but not seeing to this extent.”


A major drug company, Novartis, is betting on the Pennsylvania team and has committed $20 million to building a research center on the university’s campus to bring the treatment to market.


HervĂ© Hoppenot, the president of Novartis Oncology, called the research “fantastic” and said it had the potential — if the early results held up — to revolutionize the treatment of leukemia and related blood cancers. Researchers say the same approach, reprogramming the patient’s immune system, may also eventually be used against tumors like breast and prostate cancer.


To perform the treatment, doctors remove millions of the patient’s T-cells — a type of white blood cell — and insert new genes that enable the T-cells to kill cancer cells. The technique employs a disabled form of H.I.V. because it is very good at carrying genetic material into T-cells. The new genes program the T-cells to attack B-cells, a normal part of the immune system that turn malignant in leukemia.


The altered T-cells — called chimeric antigen receptor cells — are then dripped back into the patient’s veins, and if all goes well they multiply and start destroying the cancer.


The T-cells home in on a protein called CD-19 that is found on the surface of most B-cells, whether they are healthy or malignant.


A sign that the treatment is working is that the patient becomes terribly ill, with raging fevers and chills — a reaction that oncologists call “shake and bake,” Dr. June said. Its medical name is cytokine-release syndrome, or cytokine storm, referring to the natural chemicals that pour out of cells in the immune system as they are being activated, causing fevers and other symptoms. The storm can also flood the lungs and cause perilous drops in blood pressure — effects that nearly killed Emma.


Steroids sometimes ease the reaction, but they did not help Emma. Her temperature hit 105. She wound up on a ventilator, unconscious and swollen almost beyond recognition, surrounded by friends and family who had come to say goodbye.


But at the 11th hour, a battery of blood tests gave the researchers a clue as to what might help save Emma: her level of one of the cytokines, interleukin-6 or IL-6, had shot up a thousandfold. Doctors had never seen such a spike before and thought it might be what was making her so sick.


Dr. June knew that a drug could lower IL-6 — his daughter takes it for rheumatoid arthritis. It had never been used for a crisis like Emma’s, but there was little to lose. Her oncologist, Dr. Stephan A. Grupp, ordered the drug. The response, he said, was “amazing.”


Within hours, Emma began to stabilize. She woke up a week later, on May 2, the day she turned 7; the intensive-care staff sang “Happy Birthday.”


Since then, the research team has used the same drug, tocilizumab, in several other patients.


In patients with lasting remissions after the treatment, the altered T-cells persist in the bloodstream, though in smaller numbers than when they were fighting the disease. Some patients have had the cells for years.


Dr. Michel Sadelain, who conducts similar studies at the Sloan-Kettering Institute, said: “These T-cells are living drugs. With a pill, you take it, it’s eliminated from your body and you have to take it again.” But T-cells, he said, “could potentially be given only once, maybe only once or twice or three times.”


The Pennsylvania researchers said they were surprised to find any big drug company interested in their work, because a new batch of T-cells must be created for each patient — a far cry from the familiar commercial strategy of developing products like Viagra or cholesterol medicines, in which millions of people take the same drug.


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Huppke: Don't be afraid to hire people with disabilities








One of the best experiences of my life was watching Jamie Smith, a young man with autism, leave his routine in Chicago, travel to the Special Olympics World Games in the chaotic Chinese city of Shanghai — and succeed.


Jamie's success — managing in a foreign country and bringing home a silver medal — was the result of one thing: hard work. And I've yet to meet a harder worker than him, or a person who more appreciates the opportunities a job presents.


Our workplaces have grown diverse, but jobs remain far too scarce when it comes to people with autism or other intellectual disabilities. Unemployment rates vary depending on the study but hover around 80 percent, and people with disabilities who do get jobs are routinely paid less than other workers. A stigma surrounds people with disabilities, and employers fear that accommodating workers from this demographic might be cost-prohibitive.






Fortunately, some progress is being made.


Walgreen Co., for example, has for years welcomed workers with intellectual disabilities. In 2007, it opened a distribution center in Anderson, S.C., with the goal that people with disabilities would make up 33 percent of the staff and be paid and treated the same as any other employee.


That number now tops 40 percent, and the company opened a similar center in Connecticut in 2009. It also has begun a separate program that recruits people with disabilities to work in Walgreen stores.


The results, according to Deb Russell, a manager in the company's diversity and inclusion department, have been statistically excellent. Turnover among employees with disabilities is 50 percent lower than that among nondisabled employees, and accuracy and productivity measurements are the same.


"People think accommodations will be expensive and daunting," Russell said. "What we found, especially on the accommodations front, is that it's minimal. Over the thousands of people we've had in the distribution centers, we've spent less than $50 per person. A lot of the time, all the accommodation they need is an open mind."


She said that more than 100 Fortune 500 companies have toured the South Carolina facility to learn more about the program.


"We've been so proud to see quite a few companies coming out recently with programs that are similar to ours," Russell said. "They take what we're doing and make it their own."


What's important to realize is that when Walgreen and other companies hire people with intellectual or other disabilities, they aren't doing it as an act of charity. They're doing it because the people they're hiring are good employees who help the company make money.


Scott Standifer, a University of Missouri researcher who studies employment issues affecting adults with autism, said he's encouraged to see large companies such as Walgreen, AMC Theatres and the investment firm TIAA-CREF, to name a few, aggressively employing people with disabilities.


"For decades the employment specialists who work with people with disabilities have been saying things like, 'These people are very dedicated; they will really love the work; they'll be very loyal employees,'" Standifer said. "The business community knows these agencies are trying to sell their clients, they're trying to convince the businesses to hire them, so they're skeptical. And there hasn't been any data to really back up their claims.


"But now we've got some large corporations who have invested and are evaluating their disability employment projects and are able to talk to other corporations as corporate peers. It's one thing to have job developers coming and saying these people are good workers, give them a chance. It's another to have Walgreens say, 'We are making more money by hiring these folks.'"


Standifer wrote a paper titled "Adult Autism & Employment: A Guide for Vocational Rehabilitation Professionals," which provides a wealth of information for employers, from advice on interviewing people with autism to explanations of the disability. That paper can be found at: tinyurl.com/autismemploy.


He also said he hopes to see more coordination between people in the autism community and an employment resource found in every state — the vocational rehabilitation agency. This agency, overseen by the federal Rehabilitation Services Administration, focuses on finding jobs for people with physical disabilities, often veterans.


But Standifer believes these agencies may be better equipped than state groups to assist people with autism and other intellectual disabilities.


"It's hard for anybody to find a job," he said. "But these state agencies (that work with people with intellectual disabilities) don't have the 80 years of history that the vocational rehabilitation program has. One of the things that I'm excited about is that the autism community, as they start to understand vocational rehabilitation, will also start to lobby for increased vocational rehabilitation funding."


Standifer also pointed out that study after study has shown employing people with disabilities saves the country money.


"It has turned out to be cheaper and better to do whatever it takes to get people with disabilities working," he said. "When you support that, they don't need as many other social services. They're not needing Social Security disability income and other things. It's cheaper, it's better and it's healthier."


And, dare I say, it's the way things should be. Our workplaces have always benefited from inclusion.


We should aspire to work alongside people with disabilities, not as an act of good will, but with the hope that we might benefit by learning from each other.


TALK TO REX: Ask workplace questions — anonymously or by name — and share stories with Rex Huppke at ijustworkhere@tribune.com, like Rex on Facebook at facebook.com/rexworkshere, and find more at chicagotribune.com/ijustworkhere.






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Cowboys' Brown dies in crash; former Illini teammate charged

RAW: Irving PD's Cowboys Josh Brent Press Conference (Posted Dec. 8th, 2012)









Dallas Cowboys defensive tackle Josh Brent was arrested for drunk driving and charged with manslaughter on Saturday after a car he was driving crashed and killed teammate Jerry Brown Jr, in the second tragedy involving NFL players in a week.

Police in the Dallas suburb of Irving said that Brent, 24, was driving at high speed on a state highway at 2:21 a.m. when the car slammed into an "outside curb, causing the vehicle to flip at least one time before coming to rest in the middle of the service road."

Brown, who had been in the passenger seat, was pronounced dead at a nearby hospital a short time later. Brent suffered "minor scrapes" and was booked into the Irving jail, where he remained on Saturday awaiting arraignment, police said.

"Officers at the scene believed alcohol was a contributing factor in the crash," police said, adding that Brent was given a sobriety test. "Based on the results and the officer's observations and conversations with Price-Brent, he was arrested for driving while intoxicated," Irving police spokesman John Argumaniz said at a news conference.


“I am devastated and filled with grief,” Brent said in a statement released by his agent Saturday night. “Filled with grief for the loss of my close friend and teammate, Jerry Brown. I am also grief-stricken for his family, friends and all who were blessed enough to have known him.


"I will live with this horrific and tragic loss every day for the rest of my life. My prayers are with his family, our teammates and his friends at this time."








Brown, 25, was a linebacker on the professional team's practice squad but had not played any games with the Cowboys. He had played in one NFL game for the Indianapolis Colts this season before joining the Cowboys.

Brown also played for the Hamilton Tiger-Cats of the Canadian Football League in 2011 and for two Arena Football League team, the Jacksonville Sharks in 2011 and the San Antonio Talons in 2012. Arena football is played indoors on a smaller field than NFL or Canadian outdoor football.

Brent, 24, has started in five games for the Cowboys and played 12 this season since regular starting defensive lineman Jay Ratliff was sidelined with injuries.

Dallas Cowboys owner Jerry Jones issued a statement expressing his condolences to Brown's family.

"We are deeply saddened by the news of this accident and the passing of Jerry Brown. Our hearts and prayers and deepest sympathies are with the members of Jerry's family and all of those who knew him and loved him."

Brent remained in jail on Saturday and his bond will be set at his Sunday morning arraignment, police said. The drunk driving charge was upgraded to intoxication manslaughter, a second degree felony which is punishable in Texas by two to 20 years in prison and a fine up to $10,000.

When police arrived on the scene of the accident after several 911 calls, part of the car was on fire. The 2007 Mercedes sedan was resting on its roof in the middle of the road, and Brent was dragging Brown out of the burning car, said Irving police spokesman John Argumaniz at a news conference.

Police believe, based on gouge marks and other physical evidence at the scene, that Brown was driving faster than the posted 45 miles per hour speed limit.

Argumaniz said the Texas police are still looking for witnesses to the crash, which did not appear to involve any other vehicles.

"There were people on scene," he said. "However, it's our understanding that no one saw what took place. They drove up after the accident."

Brent has been arrested for drunk driving before. While he was on the University of Illinois football team, he was arrested February 23, 2009, on a drunk driving charge, according to Champaign, Illinois, county records. He spent time in the county jail and was suspended from the team, according to local media reports. He eventually left school and was drafted by the Cowboys.


Brent and Brown were teammates at Illinois from 2007-09 under then-coach Ron Zook. Brent was suspended in 2009 after a DUI arrest.


An Illinois spokesman issued this statement: "This is a tragic story. Our thoughts and condolences go out to the Brown family."

Illinois coach Tim Beckman tweeted: "Sad News for the illini family today. Jerry Brown, former illini and current NFL player has passed away. Keep him in your prayers."


Former teammate Arrelious Benn tweeted: "Prayers go out to the family of my former classmate, teammate Former Illini Jerry Brown. RIP. #Illini" 



Tribune reporter Shannon Ryan contributed



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Orlando Bloom’s Legolas returns to Middle Earth in 2014′s “There and Back Again”












LOS ANGELES (TheWrap.com) – Legolas was a fan favorite in Peter Jackson‘s “Lord of the Rings” trilogy, but J.R.R. Tolkien enthusiasts won’t see the warrior Elf return to Middle Earth until 2014 when “The Hobbit: There and Back Again” hits theaters.


Entertainment Weekly published the first image of Orlando Bloom reprising his role and he looks pretty much the same, with the exception of his very blue eyes (weren’t they brown before?).












It’s true that the character is not featured in the book this trilogy is being adapted from, but luckily for Bloom’s bank account, his father is.


“He’s Thranduil’s son, and Thranduil is one of the characters in ‘The Hobbit,’” Jackson explained. “And because elves are immortal it makes sense Legolas would be part of the sequence in the Woodland Realm.”


If you don’t recognize the man standing next to Legolas, it’s because he’s a new face in the franchise. Bard the Bowman – played by Luke Evans – is a heroic human Laketown warrior who (if you couldn’t tell by his name) is also quite the marksman. He’ll come into the picture when “The Hobbit: The Desolation of Smaug” lands in theaters on December 13, 2013.


Movies News Headlines – Yahoo! News


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New Taxes to Take Effect to Fund Health Care Law





WASHINGTON — For more than a year, politicians have been fighting over whether to raise taxes on high-income people. They rarely mention that affluent Americans will soon be hit with new taxes adopted as part of the 2010 health care law.




The new levies, which take effect in January, include an increase in the payroll tax on wages and a tax on investment income, including interest, dividends and capital gains. The Obama administration proposed rules to enforce both last week.


Affluent people are much more likely than low-income people to have health insurance, and now they will, in effect, help pay for coverage for many lower-income families. Among the most affluent fifth of households, those affected will see tax increases averaging $6,000 next year, economists estimate.


To help finance Medicare, employees and employers each now pay a hospital insurance tax equal to 1.45 percent on all wages. Starting in January, the health care law will require workers to pay an additional tax equal to 0.9 percent of any wages over $200,000 for single taxpayers and $250,000 for married couples filing jointly.


The new taxes on wages and investment income are expected to raise $318 billion over 10 years, or about half of all the new revenue collected under the health care law.


Ruth M. Wimer, a tax lawyer at McDermott Will & Emery, said the taxes came with “a shockingly inequitable marriage penalty.” If a single man and a single woman each earn $200,000, she said, neither would owe any additional Medicare payroll tax. But, she said, if they are married, they would owe $1,350. The extra tax is 0.9 percent of their earnings over the $250,000 threshold.


Since the creation of Social Security in the 1930s, payroll taxes have been levied on the wages of each worker as an individual. The new Medicare payroll is different. It will be imposed on the combined earnings of a married couple.


Employers are required to withhold Social Security and Medicare payroll taxes from wages paid to employees. But employers do not necessarily know how much a worker’s spouse earns and may not withhold enough to cover a couple’s Medicare tax liability. Indeed, the new rules say employers may disregard a spouse’s earnings in calculating how much to withhold.


Workers may thus owe more than the amounts withheld by their employers and may have to make up the difference when they file tax returns in April 2014. If they expect to owe additional tax, the government says, they should make estimated tax payments, starting in April 2013, or ask their employers to increase the amount withheld from each paycheck.


In the Affordable Care Act, the new tax on investment income is called an “unearned income Medicare contribution.” However, the law does not provide for the money to be deposited in a specific trust fund. It is added to the government’s general tax revenues and can be used for education, law enforcement, farm subsidies or other purposes.


Donald B. Marron Jr., the director of the Tax Policy Center, a joint venture of the Urban Institute and the Brookings Institution, said the burden of this tax would be borne by the most affluent taxpayers, with about 85 percent of the revenue coming from 1 percent of taxpayers. By contrast, the biggest potential beneficiaries of the law include people with modest incomes who will receive Medicaid coverage or federal subsidies to buy private insurance.


Wealthy people and their tax advisers are already looking for ways to minimize the impact of the investment tax — for example, by selling stocks and bonds this year to avoid the higher tax rates in 2013.


The new 3.8 percent tax applies to the net investment income of certain high-income taxpayers, those with modified adjusted gross incomes above $200,000 for single taxpayers and $250,000 for couples filing jointly.


David J. Kautter, the director of the Kogod Tax Center at American University, offered this example. In 2013, John earns $160,000, and his wife, Jane, earns $200,000. They have some investments, earn $5,000 in dividends and sell some long-held stock for a gain of $40,000, so their investment income is $45,000. They owe 3.8 percent of that amount, or $1,710, in the new investment tax. And they owe $990 in additional payroll tax.


The new tax on unearned income would come on top of other tax increases that might occur automatically next year if President Obama and Congress cannot reach an agreement in talks on the federal deficit and debt. If Congress does nothing, the tax rate on long-term capital gains, now 15 percent, will rise to 20 percent in January. Dividends will be treated as ordinary income and taxed at a maximum rate of 39.6 percent, up from the current 15 percent rate for most dividends.


Under another provision of the health care law, consumers may find it more difficult to obtain a tax break for medical expenses.


Taxpayers now can take an itemized deduction for unreimbursed medical expenses, to the extent that they exceed 7.5 percent of adjusted gross income. The health care law will increase the threshold for most taxpayers to 10 percent next year. The increase is delayed to 2017 for people 65 and older.


In addition, workers face a new $2,500 limit on the amount they can contribute to flexible spending accounts used to pay medical expenses. Such accounts can benefit workers by allowing them to pay out-of-pocket expenses with pretax money.


Taken together, this provision and the change in the medical expense deduction are expected to raise more than $40 billion of revenue over 10 years.


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WGN America may be channel of change for Tribune Co.









On Sunday night, WGN-Ch. 9 will air "Bozo's Circus: The Lost Tape," a 1971 episode that an alert archivist discovered after four decades of gathering dust.


At the same time, WGN America, the station's national cable counterpart, will beam reruns of the sitcom "How I Met Your Mother" to its 75 million subscribers across the country.


Part of Tribune Co.'s future may rest with programming decisions like that.





Poised to emerge from its lengthy bankruptcy, the Chicago-based media company is expected to enter the new year with its holdings intact, a clean balance sheet and a plan to sell everything eventually.


The expected decision to name television executive Peter Liguori as Tribune Co.'s chief executive — he was the architect of basic cable powerhouse FX's first-run success — points to unlocking the value of the 34-year-old superstation as integral to a profitable exit strategy for the new owners of Tribune Co.


A source close to the situation told the Tribune that Liguori sees WGN America as an undervalued cable network with tremendous potential, if it gets the programming investment required. Developing the channel will "absolutely be a focus" after Liguori joins the company, which could happen within weeks.


"I'm sure that's the plan," said Derek Baine, a senior media analyst with SNL Kagan. "It all comes down to how much money you're investing in programming to get the viewers."


The new owners, senior creditors Oaktree Capital Management, Angelo, Gordon & Co. and JPMorgan Chase, have made it clear that monetizing Tribune Co.'s publishing, broadcasting and other holdings after a four-year slog through Chapter 11 is a matter of time. The process will likely challenge the maxim that the whole of Tribune Co. — estimated to be worth $4.5 billion post-emergence — is more than the sum of its parts. That's especially true when one of those parts is national cable channel WGN America, a low-rated repository of Cubs games and reruns, whose upside potential may dwarf all of the other assets combined.


Broadcasting assets, including 23 television stations, WGN-AM 720, CLTV and WGN America, represent the core profit center and account for $2.85 billion of Tribune Co.'s value, according to financial adviser Lazard. Tribune's eight daily newspapers, including the Chicago Tribune, are worth $623 million, and other strategic assets, such as stakes in CareerBuilder and Food Network, are valued at $2.26 billion, according to a 2012 report by Lazard.


The value of the TV stations, including KTLA-TV in Los Angeles and WPIX-TV in New York, should benefit from an improving appetite for acquisitions, according to analysts. But WGN America, with the help of a few hit shows and some rebranding, could be the sleeping giant on the books. Turner Broadcasting's TBS, for example, has five times the audience and seven times the cash flow of WGN America and carries a distinct brand. It is worth more than twice that of the entire Tribune Co.


Liguori's success at FX Networks could well be the blueprint. After joining what was a small basic cable channel in 1998, Liguori was elevated to CEO in 2001 and transformed the network by offering original programming such as "The Shield," "Nip/Tuck" and "Rescue Me," building ratings and revenues in the process.


"You just need a couple of hit shows and then you can start building a schedule around them," Baine said. "A lot of these cable networks, you take one hit show and get people hooked on it and then you can stick another one in the time slot right behind it and start building on that."


Last year, FX had a cash flow of nearly $553 million on net revenue of more than $1 billion, making the network worth nearly $8 billion, Baine said.


WGN America is often compared with TBS to illustrate the upside, and the divergent paths the two original superstations have taken as the cable network model — a dual revenue stream of affiliate fees and advertising dollars — has evolved over the last two decades.


Both WGN and WTBS were uploaded to satellite in the late '70s, filling the programming void for distant cable systems with local baseball and "Andy Griffith" reruns. TBS became a division of Time Warner in 1996 and transformed into a full-fledged cable network, shelving old reruns for off-network sitcoms, benching the Atlanta Braves for national MLB coverage and rolling out first-run programming featuring everything from Tyler Perry to Conan O'Brien. The network dropped "superstation" and rebranded itself with slogans such as "very funny."


One advantage FX, which is part of Rupert Murdoch's News Corp., and TBS have enjoyed is the connection to a media empire with programming prowess and deep pockets.


Meanwhile, WGN has clung to the vestiges of its lower-cost superstation model, meaning cable and satellite systems can't insert local commercials and must pay copyright fees for the programming to the government. Content shifts between local and national, with Cubs baseball and Chicago news still broadcast across the country. There is a dearth of first-run programming, and the schedule is dotted with such fillers as "In the Heat of the Night" and "Walker: Texas Ranger." Even Andy Griffith remains in the mix with "Matlock," part of a block of programming to cover the "WGN Morning News," which is not broadcast nationally.


Not surprisingly, WGN America lags TBS and FX in ratings, revenue and distribution.


TBS is ranked 11th, FX is 13th and WGN America 40th in average viewership among cable networks through November, according to Nielsen.


Of the more than 114 million homes receiving cable in the U.S., TBS reaches 99.7 million, FX 97.9 million and WGN America 75 million, according to Nielsen. One of the biggest holes in WGN's coverage area is New York City, where the station has never quite found its way into the cable lineup. Nationally, TBS and FX are included in the basic packages for Dish Network and DirecTV, while WGN America is relegated to the second or third tier.





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