Pension Benefit Guaranty Corporation Other 19. Subsequent Events Warrants Lump-Sum Payment Offer In February 2014, the Pension Benefit Guaranty Corporation (“PBGC”) notified us that it believed the Company  had a triggering event under Section 4062(e) of the Employee Retirement Income Security Act of 1974, as amended  (“ERISA”), with respect to The Boston Globe Retirement Plan for Employees Represented by the Boston Newspaper  Guild (the “Boston Globe Plan”) and The New York Times Companies Pension Plan on account of the Company’s sale  of the New England Media Group.  In June 2014, the PBGC voluntarily withdrew its claim with respect to The New York Times Companies Pension  Plan. In December 2014, Congress enacted major changes to Section 4062(e) of ERISA. In light of this amendment, the  Company believes that it has no Section 4062(e) liability with respect to the Boston Globe Plan. We are involved in various legal actions incidental to our business that are now pending against us. These  actions are generally for amounts greatly in excess of the payments, if any, that may be required to be made. It is the  opinion of management after reviewing these actions with our legal counsel that the ultimate liability that might  result from these actions would not have a material adverse effect on our Consolidated Financial Statements. In January 2009, pursuant to a securities purchase agreement, we issued warrants to affiliates of Carlos Slim  Helú, the beneficial owner of approximately 8% of our Class A Common Stock (excluding the warrants), to purchase  15.9 million shares of our Class A Common Stock at a price of $6.3572 per share. On January 14, 2015, the warrant  holders exercised these warrants in full and the Company received cash proceeds of approximately $101.1 million  from this exercise. The Company currently intends to use the cash proceeds to repurchase Class A shares from time to  time in open market transactions as conditions permit. During the fourth quarter of 2014, the Company offered certain terminated vested participants in various  qualified defined benefit pension plans the option to immediately receive a lump-sum payment equal to the present  value of his or her pension benefit in full settlement of the plan’s pension obligation, or to immediately commence a  reduced monthly annuity. The election period for this voluntary offer closed on December 31, 2014. During the first  quarter of 2015, we expect to record a pension settlement charge of approximately $40 million. The lump-sum  payments will approximate $98 million, and will be funded with existing assets of the pension plans and not with  Company cash. THE NEW YORK TIMES COMPANY – P. 103