The early retirement buyouts are a "cost control" measure. Payroll (and benefits) are usually the largest expense for most companies. So, when looking to keep expenses in line unfortunately that is one of the first places they look. These types of (or, similar) buyouts are happening at all types of companies healthy, unhealthy and those somewhere in between. Those currently closest to retirement age often have larger salaries due to tenure and a lot of them may have a pension (along with other retirement benefits) as well. Obviously, they can't just layoff everyone over 55...that would be age discrimination. But, there is nothing preventing companies from discriminating favorably against older employees...enter early retirement buyouts. Not only does this allow them to lower their payroll by replacing higher salaried workers with new low salaried employees. But, with the rising cost of insurance obligations as well as adding to years of service for pension obligations most companies want to gain a handle on those benefits as well. By convincing them to leave active employment they can gain some control and certainty around those future benefit obligations. I'm not saying I agree with the tactic but, just pointing out why it's being done.
TEGNA's current cash flow has been sufficient to cover their debt obligations. They repaid $587 Million in 2015. Although, that was offset by $200 Million in new borrowing so, the Net reduction was $387 Million. And, large portions of that debt doesn't mature for several years. Yes, I would agree that indirectly the buyouts help in regards to their debt. But, I wouldn't necessarily portray them as teetering on the brink of insolvency.
Let me give you analogy. Now before I start I will say this isn't the best analogy...it's a bit apples vs. oranges...but, I think it might help illustrate what I'm saying better. Let's say I have stable employment/income, modest savings, a decent sized "debt load" in the form of a mortgage and car loan. Although I have those debt obligations all my bills are paid on time and there is still some free cash left cover, etc., etc. One day after analyzing discretionary spending in the household budget I decide that some expenses are on an upward trajectory and need to be reigned in a bit. This doesn't mean I can't afford them or pay all of my current bills, it's more of a long-term budgeting thing. So, I make the decision to pay an ETF (or, "buyout") to get out of the remainder of my Cable TV contract and replace that with a cheaper month-to-month streaming TV service. Likewise, I do the same for my cell phone service paying an ETF (or, "buyout") to move to a cheaper service. Now, does this mean I'm on the brink of foreclosure or bankruptcy? No, not by any means. Sometimes things are simply done to control costs because the person (or, persons) in charge of the budget feels it's the fiscally responsible thing to do. A similar principal can be applied when looking at the business world. Now am I a fan of people being forced out of their job...Heck No! And, yes I'm aware that my analogy compares peoples livelihood to discretionary tv/phone service...again it's not the greatest analogy. The point I'm trying to make is that sometimes X doesn't always equal Y. Just because I cut expenses out of my personal budget doesn't mean necessarily I'm struggling. And, likewise the same can be said for a buisness
It's considered "supplemental income" by the IRS so it's subject to a higher withholding when the check is issued. Compubit already touched on this above but, most employers choose to withhold a flat 25% for the Feds on a single check (versus using an aggregate method when "supplemental income" is paid out on regular paychecks.) Now, once you add in any state and local withholding you could easily push 40%...I know first hand.
With that said it's important to note that all income is taxed the same at filing time. These are just withholding rates. So, It all comes out in the wash at tax filing time.