American, US Airways approve merger

A long-anticipated merger of American Airlines and US Airways is expected to be announced Thursday after weeks of closed-door negotiations, according to people briefed on the deal. The transaction would create the nation's largest carrier and cap an era of consolidation in a troubled industry.

The marriage of American, based in Fort Worth, and its smaller competitor based in Tempe, Ariz., would form an airline valued at $11 billion. The union would be the latest in a string of mergers and acquisitions in an industry struggling to stay airborne amid fluctuating fuel costs, labor strife and economic turbulence.

The new airline would retain the name American, have its headquarters in Fort Worth and be the biggest carrier in eight of the nation's largest airports including Los Angeles, according to the sources, who were not authorized to speak publicly. The airline is expected to surpass its competitors in revenue, passengers served and fleet size. In the first few years, the merger could generate savings and increased revenue of up to $1.2 billion, according to Robert Herbst, an industry consultant.

Quiz: Test your knowledge about airport security

But critics say another airline merger would only hurt passengers.

With newly merged airlines eliminating overlapping service, fares are certain to rise and carriers will probably stop serving less-profitable markets, some critics argue. Since 2007, the average domestic airfare has increased 15%, according to federal statistics.

"You don't have to be an economics professor to understand that less competition in the market is going to result in consumers paying more, and airfares are certainly not immune from this simple fact," said Brandon M. Macsata, executive director of the Assn. for Airline Passenger Rights advocacy group.

But industry experts predict the merger of American and US Airways won't lead to significant fare increases because the two airlines rarely compete head to head, and because there are enough other airline competitors in the market.

"Out of all of the major airline mergers we've had in the last decade, this merger has the least amount of overlapping of flights and routes," Herbst said.

In fact, the airlines seem to complement each other in several ways.

US Airways now has a large presence in mid-size markets such as Charlotte, N.C., Philadelphia and Phoenix, while American Airlines dominates in some of the nation's largest airports, with more international destinations.

"American likes to be a presence in big markets, and US Airways likes to be No. 1 in small markets," said Seth Kaplan, a managing partner at Airline Weekly, a trade magazine.

The merger must still be approved by federal regulators, but industry experts don't expect opposition.

The deal would mark the latest in a series of mergers and acquisitions that has narrowed the industry to a handful of mega-airlines and several smaller, regional carriers.

In the last five years, Delta has merged with Northwest Airlines, United has merged with Continental and Southwest has acquired AirTran — resulting in a 10% drop in passenger capacity, according to a study by the International Air Transport Assn., an industry trade group.

The odds of a merger increased when American's parent company, AMR, filed for bankruptcy in November 2011. Many analysts and AMR creditors argued that American could compete against other big airlines only by joining forces with another carrier to reduce costs and expand its service area.

For months, US Airways pushed for the merger, with American's top executive initially resisting until it became clear that the carrier's unions and many of its creditors supported a deal.

Another thorny issue that may have delayed a merger announcement was deciding who would run the new company. Board members for the two airlines have reportedly agreed to name US Airways Chief Executive Doug Parker as CEO of the merged airline. AMR's chief executive, Thomas Horton, will be non-executive board chairman.

The ownership of the new airline will be split 72% for AMR creditors and 28% for US Airways shareholders.

One of the toughest parts about pushing through a merger — the integration of unions and their often conflicting contracts — has been already largely ironed out. The merger must still be approved by the Bankruptcy Court.

hugo.martin@latimes.com

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Obama issues order to bolster cyber-defenses

WASHINGTON — President Obama issued an executive order Tuesday that seeks to shore up the nation's cyber-defenses by improving how classified information is shared between the government and the owners and operators of crucial infrastructure, including electric utilities, dams and mass transit.

The long-expected order, which Obama announced in his State of the Union speech, is a stopgap measure that follows Congress' failure last year to pass legislation to create comprehensive standards for the private sector to help thwart digital attacks. Many Republicans and business leaders had decried that bill as unnecessary regulation, while civil liberties groups warned of privacy concerns.

"We know hackers steal people's identities and infiltrate private email," Obama said. "We know foreign countries and companies swipe our corporate secrets. Now our enemies are also seeking the ability to sabotage our power grid, our financial institutions and our air-traffic control systems. We cannot look back years from now and wonder why we did nothing in the face of real threats to our security and our economy."

The executive order comes amid growing concern about foreign-based theft of government and other sensitive computer data and sophisticated digital attacks capable of causing physical damage to national infrastructure, from water treatment plants to traffic systems.

A senior administration official, who spoke on condition of anonymity to brief reporters before the announcement, called cyber-attacks "a grave threat to the United States that requires a new approach based on public-private partnerships."

He said Obama decided to act because the risk remained high and congressional action was uncertain. The president will continue to push for new legislation, the official said.

The order includes two main features. One will expand a program that allows the government to share classified cyber-threat information, including malware signatures, with private companies that pass a security clearance process. The effort now is mostly limited to Internet companies and defense contractors, but it would add crucial infrastructure companies.

"The government provides classified information about cyber-threats to Internet service providers and cyber-security companies … they use that to protect their customers," a second senior administration official said. "We're going to expand the pool of companies that are able to benefit from these cyber-security services."

The order also requires the National Institute of Standards and Technology, a federal agency, to help write voluntary standards so companies can reinforce their network defenses to detect and repel cyber-attacks.

The U.S. intelligence community is preparing a National Intelligence Estimate on cyber-attacks aimed at the United States. Officials say the classified document will highlight the role of Chinese government entities in stealing American intellectual property through hacking, and will outline other cyber-threats overseas.

U.S. officials believe Iran is behind recent cyber-attacks against American banks, for example, in retaliation for the United States' suspected role in a cyber-attack on Iran aimed at slowing its nuclear program. Russia is also active in cyber-espionage, U.S. officials say.

Most American infrastructure is controlled by computer networks connected to the Internet, and some of those networks are vulnerable to dangerous hacking attacks, experts say. A cyber-attack on the electrical power grid, for example, could have severe consequences.

"We're talking about a subset of companies that, if something really bad happens to them in cyberspace, something really bad happens to an awful lot of people," a third administration official said.

Leon E. Panetta, the outgoing secretary of Defense, warned in a speech Feb. 9 that "it is very possible the next Pearl Harbor could be a cyber-attack. That would have one hell of an impact on the United States of America. That is something we have to worry about and protect against."

ken.dilanian@latimes.com

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Alec Baldwin, wife expecting a baby this summer

NEW YORK (AP) — Alec Baldwin and his wife are expecting their first child together.

Publicist Matthew Hiltzik confirmed Tuesday that Hilaria Baldwin is due late this summer.

Alec Baldwin already is the father of a 17-year-old daughter, Ireland, from his previous marriage to actress Kim Basinger (BAY'-sing-ur). Hilaria Baldwin is a special correspondent for the TV show "Extra." The couple wed last June after a three-month engagement.

Alec Baldwin recently won a SAG Award for best actor in a TV series for the NBC comedy "30 Rock," which concluded its seven-year run two weeks ago.

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Apple CEO Tim Cook calls shareholder suit a 'silly sideshow'

SAN FRANCISCO — Apple Inc. Chief Executive Tim Cook criticized a rebellious investor for creating a "silly sideshow" by filing a lawsuit a few weeks before the company's annual shareholder conference.

"Frankly, I find it bizarre that we find ourselves being sued for doing something that's good for shareholders," Cook said. "It's a silly sideshow, honestly. My preference would be that everyone take the money they are spending on this and donate it to a worthy cause."

Cook made his remarks during an interview at a Goldman Sachs technology conference Tuesday. The one-hour appearance covered a variety of subjects, including the shareholder dispute, whether Apple had lost its innovation mojo and the continued expansion of its stores.

If Cook was feeling the pressure of a falling stock price and investor anger, he didn't show it. His remarks displayed an unusual amount of passion and even glibness for a man who carries a more buttoned-down reputation.

For instance, Cook talked about his larger view that Apple's long-term advantage lies in its relentless focus on making "great products" that produced moments of "magic." He said competitors would have a difficult time matching Apple's combined strengths in software, hardware and services.

"Innovation is so deeply embedded in Apple's culture, the boldness, the ambition, a belief that there are not limits, the desire among our people to not just make good products, but to make the very best products in the world," Cook said. "It's as strong as ever. It's in the values and the DNA of the company. I feel fantastic about it. There's not a better place for innovation."

But Cook grew feisty when discussing the challenge issued by David Einhorn of Greenlight Capital Inc. Last week, Einhorn went public with his request that Apple issue a special class of stock to shareholders. Einhorn and other shareholders have been pressing Apple to do more with the $120 billion in cash on its balance sheet.

Einhorn also sued to block a proposition that Apple had placed on its annual proxy ballot that would require a shareholder vote before issuing such a stock.

At first, Cook seemed ready to extend an olive branch of sorts to Einhorn, saying his proposal for a special class of stock might have some merit.

"I think it's creative," he said. "We are going to thoroughly evaluate their current proposal. We welcome all ideas from all our shareholders."

But from there, Cook fired back against some of the criticisms leveled by Einhorn, including his remarks that Apple has a "Depression-era mentality" because it's hoarding cash.

Cook listed several areas in which Apple is investing money, including infrastructure, talent and new products, in addition to announcing last year that it would return $45 billion to shareholders in stock dividends.

"Apple doesn't have a Depression-era mentality," he said. "I don't know how a company with a Depression mind-set would have done all of those things."

Cook said the Cupertino, Calif., company is not going to launch a campaign to get the proposition passed, in part because he believes that its pro-shareholder nature should be self-evident to investors.

"You're not going to see a 'Yes on 2' sign in my yard," Cook said. "It's a distraction. And it's not a seminal issue for Apple."

Apple plans to file its response to Einhorn's lawsuit by the end of Wednesday. And a hearing on the matter is set for next week in District Court in New York.

The annual shareholder meeting is scheduled Feb. 27.

Cook repeated that Apple is continuing to consider whether and how it might return more cash to shareholders.

"It's a privilege to be in a position where we can seriously consider returning additional cash to shareholders," he said.

Cook also used the word "privilege" to describe the kind of issues facing Apple's stores.

He reiterated how crucial the stores remain to Apple. And he discussed the company's expansion plans for its stores by noting that they were becoming so popular that their capacity was being strained by the number of visitors.

"Some of our stores aren't big enough," he said. "It's a privilege to have this kind of issue."

Cook said Apple is shutting down 20 stores and moving them to locations where they can be expanded. In addition, the company will open 30 stores at new locations, mostly outside the U.S., including its first in Turkey. Apple will then have stores in 13 countries.

Last year Apple's 400-plus stores attracted about 120 million people. Cook said the stores' popularity reflected the different philosophy that went into creating them.

"It's a retail experience where you walk in and you realize the store is not here for the purposes of selling; it's here for the purpose of serving," he said.

Apple spends about $1 billion annually on capital expenditures related to retail. Cook said the stores have been essential in terms of introducing people to new products. He said it's hard to imagine Apple's iPad tablet becoming as successful as it has without having a place where customers can see and touch something they had never experienced.

"There's no better place to discover and play and learn about our products than in retail," Cook said.

chris.obrien@latimes.com

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Mahony voting for a new pope rankles some Catholics

Nearly two weeks ago, Los Angeles Archbishop Jose Gomez announced he had removed Cardinal Roger Mahony from all public duties amid revelations that he plotted to conceal child molestation by priests from law enforcement.

But Mahony on Monday found himself back at the center of church business, as one of 117 cardinals who will elect a successor to Pope Benedict XVI.

Mahony was quick to weigh in on the papal news — posting a statement on his online blog at 8:38 a.m., two hours before the archdiocese announced that Gomez would issue his own remarks at the midday Mass at the downtown Cathedral of Our Lady of the Angels.

In the posting, Mahony called Benedict an "extraordinary" successor to St. Peter and that he intended to participate in choosing the next pontiff.

"I look forward to traveling to Rome soon to help thank Pope Benedict XVI for his gifted service to the Church, and to participate in the Conclave to elect his successor," Mahony wrote.

Benedict's unexpected decision to step down created an awkward situation in the Los Angeles Archdiocese, which is reeling over newly released documents showing how church leaders handled the abuse cases. Documents show that Mahony and Bishop Thomas Curry worked to shield abusers from police. Both have since issued detailed apologies.

Gomez wrote in a letter to parishioners last month that the priest files were "brutal and painful reading. The behavior described in these files is terribly sad and evil. There is no excuse, no explaining away what happened to these children."

Gomez wrote that Mahony, his predecessor as leader of the archdiocese, "has expressed his sorrow for his failure to fully protect young people entrusted to his care. Effective immediately, I have informed Cardinal Mahony that he will no longer have any administrative or public duties." A church spokesman later clarified that Mahony remained a priest "in good standing" and that he maintained all his powers as a cardinal.

Mahony is one of 11 U.S. cardinals who will vote for the next pope.

Father Thomas Rausch of Loyola Marymount University said Mahony has no choice in the matter: Church law requires him to vote, along with all cardinals under age 80, he said.

"It is a sacred responsibility of every cardinal of the church who is able to attend the conclave to vote," said Tod Tamberg, archdiocese spokesman.

Still, Mahony's role in selecting a pope drew mixed reactions among Catholics in Southern California.

Manuel Vega, a retired Oxnard police officer who as an altar boy was molested from the age of 12 to 15 by Father Fidencio Silva, said Mahony would bring shame on the Catholic Church by going to Rome to vote.

"Mahony is going without clean hands. His hands are dirty ... from covering up years of sexual abuse. How can he be part of the conclave?" Vega asked.

Other Catholics said they were pleased that Mahony would be voting. They said they hoped that he would bring a more liberal and American point of view to the conclave, which will be dominated by the conservative cardinals whom Popes John Paul II and Benedict XVI have appointed over the last three decades.

Jane Argento, a parishioner at Holy Family Church in South Pasadena, said she was livid at Mahony when she read about his actions after the archdiocese's release of sex abuse documents. But she said the relatively liberal Mahony reflected her own Catholic convictions about larger roles for women in the church, among other issues. Mahony, she said, was the architect of a pastoral associate program in Los Angeles that had trained several women to run parishes, including her own.

"I'm relieved that Mahony is going," Argento said. "Frankly, it's one more vote for a more progressive church."

Larry Loughlin, 77, a parishioner and social worker, said it was reasonable that Mahony vote, given church rules, and that he was not the only cardinal accused of failing to remove predatory priests from churches and schools. Others include Cardinal Justin Regali, who was accused of ignoring evidence of sex abuse, including rape, in the Philadelphia archdiocese before retiring in 2011.

"Mahony is not the only cardinal to be accused of protecting priests, it is a worldwide crisis," Loughlin said.

Parishioners who attended Monday's midday Mass at the downtown cathedral said they were saddened by news of Benedict's resignation but hailed it as a chance to renew a church still suffering from the repercussions of the abuse scandals. The scandals also appeared to be on the mind of Gomez, who celebrated the Mass and called for prayer "for anyone who has been hurt by a member of the church" and for "the healing for wounds and restoration of trust."

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'Identity Thief' grabs $34.6M to debut at No. 1

LOS ANGELES (AP) — Jason Bateman and Melissa McCarthy's "Identity Thief" has made off with the weekend box-office title with a $34.6 million debut.

The top 20 movies at U.S. and Canadian theaters Friday through Sunday, followed by distribution studio, gross, number of theater locations, average receipts per location, total gross and number of weeks in release, as compiled Monday by Hollywood.com are:

1. "Identity Thief," Universal, $34,551,025, 3,141 locations, $11,000 average, $34,551,025, one week.

2. "Warm Bodies," Lionsgate, $11,356,090, 3,009 locations, $3,774 average, $36,481,172, two weeks.

3. "Side Effects," Open Road Films, $9,303,145, 2,605 locations, $3,571 average, $9,303,145, one week.

4. "Silver Linings Playbook," Weinstein Co., $6,425,271, 2,809 locations, $2,287 average, $89,519,510, 13 weeks.

5. "Hansel and Gretel: Witch Hunters," Paramount, $5,753,165, 3,285 locations, $1,751 average, $43,836,018, three weeks.

6. "Mama," Universal, $4,229,665, 2,677 locations, $1,580 average, $63,951,810, four weeks.

7. "Zero Dark Thirty," Sony, $4,006,860, 2,562 locations, $1,564 average, $83,567,450, eight weeks.

8. "Argo," Warner Bros., $2,375,344, 1,405 locations, $1,691 average, $123,608,957, 18 weeks.

9. "Django Unchained," Weinstein Co., $2,303,495, 1,502 locations, $1,534 average, $154,516,627, seven weeks.

10. "Bullet to the Head," Warner Bros., $2,078,192, 2,404 locations, $864 average, $8,269,214, two weeks.

11. "Top Gun" in 3-D, Paramount, $1,965,737, 300 locations, $6,552 average, $1,965,737, one week.

12. "Lincoln," Disney, $1,873,537, 1,517 locations, $1,235 average, $173,621,006, 14 weeks.

13. "Parker," FilmDistrict, $1,867,411, 2,004 locations, $932 average, $15,848,064, three weeks.

14. "Life of Pi," Fox, $1,745,744, 924 locations, $1,889 average, $108,530,249, 12 weeks.

15. "Les Miserables," Universal, $1,555,550, 1,447 locations, $1,075 average, $143,983,705, seven weeks.

16. "The Hobbit: An Unexpected Journey," Warner Bros., $1,468,374, 1,001 locations, $1,467 average, $298,333,426, nine weeks.

17. "Parental Guidance," Fox, $1,071,766, 1,219 locations, $879 average, $74,344,256, seven weeks.

18. "Wreck-It Ralph," Disney, $1,065,817, 757 locations, $1,408 average, $184,414,532, 15 weeks.

19. "The Impossible," Summit, $957,594, 739 locations, $1,296 average, $16,668,338, eight weeks.

20. "Quartet," Weinstein Co., $940,930, 244 locations, $3,856 average, $5,000,417, five weeks.

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Online:

http://www.hollywood.com

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Universal and Focus are owned by NBC Universal, a unit of Comcast Corp.; Sony, Columbia, Sony Screen Gems and Sony Pictures Classics are units of Sony Corp.; Paramount is owned by Viacom Inc.; Disney, Pixar and Marvel are owned by The Walt Disney Co.; Miramax is owned by Filmyard Holdings LLC; 20th Century Fox and Fox Searchlight are owned by News Corp.; Warner Bros. and New Line are units of Time Warner Inc.; MGM is owned by a group of former creditors including Highland Capital, Anchorage Advisors and Carl Icahn; Lionsgate is owned by Lions Gate Entertainment Corp.; IFC is owned by AMC Networks Inc.; Rogue is owned by Relativity Media LLC.

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Bloomberg Lauds Companies for Cutting Salt Content

Mayor Michael R. Bloomberg, in the midst of a long-running campaign to change the eating habits of New Yorkers and consumers across the country, declared a victory against salt on Monday, as 21 companies, from Kraft and Goya to FreshDirect, said they had met the first stage in reductions in salt content in foods.

After focusing on reducing trans fats and smoking, Mr. Bloomberg turned his attention to salt in 2010, announcing that about 30 companies had signed up to reduce salt in foods by 25 percent within five years, as a way of lowering consumers’ blood pressure and saving lives lost to heart attack and stroke.

“These companies have a huge presence on our shelves and in our diets,” Mr. Bloomberg said at a news conference at City Hall as he announced the results, surrounded by a half-dozen executives of food companies.

The first stage focused on the low-hanging fruit — salsa, dips, bacon, ketchup, barbecue sauce, cold cuts, processed cheese, salad dressing, canned beans and pizza — foods whose salt content is so high that reducing it up to a point probably would not be noticed by many consumers.

Mr. Bloomberg called them “some of America’s most beloved and iconic foods,” suggesting that the cuts might have a disproportionately salutary effect. But Dr. Thomas A. Farley, the city’s health commissioner, said he did not know how much salt the results so far had removed from the average person’s diet.

One side effect of the salt reduction drive is that food companies are looking for salt substitutes to make food taste better.

The main way to do that is to add potassium chloride instead of sodium chloride, said Russ Moroz, vice president for research at Kraft Foods. But because potassium tends to have a bitter, mineral taste, other ingredients have to be added. He said these were proprietary secrets, and he declined to name them.

Potassium is good, Dr. Farley said, because it lowers blood pressure and most people do not get enough of it. It is removed from fruits and vegetable during processing, he said. Mr. Bloomberg said he thought fears of additives were overdone.

But a salt industry scientist said Monday that too much potassium could be bad for the kidneys, and that the “cocktail of chemical constituents” added to balance the bitterness and enhance the salty taste could present unknown risks, as those ingredients were undisclosed.

“They do it with one eye on the lab and the other eye on the label,” said Morton Satin, vice president for science and research at the Salt Institute, a trade association. “They make sure it’s below the level that the F.D.A. requires for it to be on the label.”

Mr. Satin said that the link between high blood pressure and salt was just “a theory,” and that reducing salt too much could have harmful effects, like iodine deficiency in children, a cause of mental retardation, and diabetes.

Some companies said reducing salt proved to be a popular marketing tool. Goya reported that it had reduced salt in its regular canned beans by 5 or 6 percent, without any drop in sales. “We tasted them, and you really wouldn’t notice the difference,” Joseph Perez, senior vice president of Goya Foods, said Monday.

Mr. Bloomberg said it might surprise many people to know that bread and rolls were the “biggest contributor” to salt in the diet. Eating a muffin, he said, could be worse than eating a small bag of Lays potato chips.

Bread makers are hard to spot on the list of companies that have pledged to reduce salt, perhaps, Mr. Satin said, because it is more difficult to make bread without salt. However, some companies, like Au Bon Pain, have reduced salt in some baked goods.

On an irreverent note, Mr. Bloomberg said that he loved Subway sandwiches and would eat his favorite, the Italian B.M.T. — it includes salami, pepperoni and ham — regardless of the salt content, but that he was glad that it now contained 27 percent less.

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TV commercial actors feeling pinched as they pitch products

In a nearly 30-year television career, Frank Crim has appeared in more than 150 commercials, pitching Honda SUVs, Jack in the Box hamburgers, Allstate insurance, and Capital One credit cards.

The Oklahoma City native has played a plumber, a trash collector, a chef, a cab driver and a demon.

But lately Crim is having to book more jobs to make the same money he did a decade ago.

"I still don't make enough money to buy a house," said Crim, who makes about $60,000 a year and shares an apartment in the San Fernando Valley. "I'm not asking for the moon, just enough to make a livable wage."

PHOTOS: Celebrities by The Times

Even as the advertising industry rebounds in the wake of the Great Recession — commercial production reached a record level in Los Angeles last year — middle-class actors hired to pitch products for Ford or Budweiser are having a tougher time making ends meet.

They're being pinched by a variety of forces. Celebrities are taking spots once occupied by lesser-known actors. Lucrative network television residuals — the fees that actors get when their work is rerun — have eroded as advertisers shift spending to cable television shows like "Mad Men" and "Breaking Bad" that pay lower rates.

Many actors feel overexposed and underpaid too when their TV commercials go viral on the Internet.

Those are among the issues confronting negotiators for SAG-AFTRA as they meet in New York this week to begin bargaining on a new three-year contract with advertising agencies. The current contract, which covers about $1 billion in annual earnings for commercial actors, expires March 31.

The negotiation is being closely watched: It is the first since the Screen Actors Guild merged a year ago with its smaller sister union, the American Federation of Television and Radio Artists. SAG-AFTRA leaders face pressure to make good on their vow that a combined union would have more leverage in negotiations to extract improved pay and benefits for their more than 165,000 members, many of whom rely on commercial and voice-over jobs to supplement income from television and film work.

About 50,000 people work under the commercials contract.

Representatives of SAG-AFTRA and a joint policy committee of the American Assn. of Advertising Agencies and the Assn. of National Advertisers declined to comment on the upcoming talks, which begin Thursday.

But the negotiations could be contentious. In 2000 actors staged a six-month strike, mainly over how they were to be paid for commercials shown on network and cable television.

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SAG at that time was dominated by a hard-line group. SAG-AFTRA Co-President Roberta Reardon, who is chairing the negotiating committee, and chief negotiator David White, the union's executive director, are known as moderates who eschew outward confrontations with employers.

That was evident last week when the union sounded a conciliatory tone after the board approved a package of bargaining proposals.

"While there are difficult issues to negotiate ahead, we anticipate a productive dialogue with our bargaining partners and expect a result that is positive for our members," White said.

But the advertisers policy committee has warned members to prepare for a possible strike.

"Consider rescheduling production planned for March 31, 2013, through June 2013 to dates prior to March 31, 2013, to account for any possible impasse and strike," lead negotiator Doug Wood said in a memo in December. "This is of particular concern if you are planning production for the rollout of a new campaign or a planning a celebratory production."

Although SAG-AFTRA officials have declined to publicly discuss their package of proposals, sources close to the confidential negotiations said the union is seeking annual wage increases and higher pay for commercials shown on the Internet, as well as larger health and pension contributions. It's unclear how receptive advertisers will be to the demands, having agreed to $36 million in pay increases over three years in the previous contract negotiation in 2009.

But many veteran commercial actors fear being left behind as advertising migrates to new media.

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Gen. Joseph Dunford becomes U.S. commander in Afghanistan

KABUL, Afghanistan — Gen. Joseph F. Dunford Jr. took over Sunday as the newest and probably last U.S. commander in Afghanistan, charged with ending America's longest war even as insurgents continue to challenge the U.S.-backed Afghan government.

Dunford, a four-star Marine officer, arrives as the U.S.-led NATO coalition has closed three-quarters of its 800 bases and as it watches to see whether the Afghan security forces it trained can keep the Taliban insurgency at bay.

A ceremony inside the coalition's heavily guarded compound in Kabul marked the end of the 19-month tenure of Gen. John R. Allen, whose command was marred by a rash of deadly "insider" attacks by Afghan forces against their U.S. and NATO trainers and by strained relations with Afghan President Hamid Karzai.

But in remarks tinged with emotion Sunday, Allen pointed to significant progress, including the growth of the Afghan security forces, an increase in Afghan-led military operations, a sharp reduction in civilian casualties and the withdrawal of about 35,000 U.S. troops.

"This is victory," Allen said. "This is what winning looks like, and we should not shrink from using those words."

Allen was cleared of wrongdoing last month in a Pentagon inquiry into emails he exchanged with a woman who was linked to the sex scandal that forced the resignation of CIA Director David H. Petraeus. Allen has been nominated to lead North Atlantic Treaty Organization forces in Europe.

By replacing Allen with Dunford, the respected but low-key assistant commandant of the Marine Corps, President Obama hopes to repair ties with Karzai so they can cement a long-term security deal that could see several thousand U.S. troops remain in Afghanistan beyond the withdrawal of combat forces next year.

Embracing Allen at the ceremony, Dunford stressed continuity in the mission.

"What's not changed is the will of this coalition," he said. "What's not changed is the growing capability of our Afghan partners."

Obama is expected to spell out plans for the troop withdrawal and a post-2014 U.S. military presence in Afghanistan as early as his State of the Union message Tuesday. Although White House officials have said it's possible that no U.S. troops would remain, Pentagon officials are calling for a residual force that would focus on counter-terrorism and supporting Afghan forces.

Dunford will have a key seat at the table as U.S. officials try to work out the security agreement, which will hinge on earning assurances from Afghan leaders that they won't release prisoners currently in U.S. custody and will guarantee U.S. troops immunity from prosecution in Afghan courts. The failure to reach an immunity guarantee was a main reason no U.S. troops remained in Iraq after the war ended there.

About 65,000 U.S. troops remain in Afghanistan, down from a high of 100,000. Despite flagging U.S. support for the war, military commanders contend that removing the remaining troops precipitously could cause Afghan security forces to collapse.

In his Senate confirmation hearing in November, Dunford offered no prescriptions for troop levels but cautioned against withdrawing too quickly, saying it could destabilize the region.

U.S. officials recently estimated that a residual American force could number from 6,000 to 9,000 troops — fewer than the 15,000 senior military commanders had wanted. Experts say that Dunford will be charged with figuring out how such a force could achieve U.S. strategic aims.

"A major challenge will be identifying a mission that those troops can perform that's useful and doable with that small number," said Stephen Biddle, a defense analyst and professor at George Washington University.

Even as the war winds down, challenges remain. The insider attacks that killed 61 NATO troops in 2012 have dissipated, but only after U.S. troops scaled back joint operations with Afghan forces, hampering training efforts. By next year, Afghan forces are expected to be in the lead of all security operations, but the Taliban, though weakened, retains the ability to attack in Kabul and other strategic areas.

Experts say that Dunford, who earned the nickname "Fighting Joe" when he led a charge from Kuwait into Baghdad during the 2003 invasion of Iraq, could clash with a second-term Obama Cabinet, whose members — including Secretary of State John F. Kerry and, if he's confirmed, Chuck Hagel as Defense secretary — have not been strong supporters of a large long-term U.S. presence in Afghanistan.

"It's going to be extremely difficult for a commanding general who's not going to have many partners in the administration," said Thomas Donnelly, a military expert at the American Enterprise Institute, a conservative Washington think tank.

"It's a bit of a thankless task, for sure."

shashank.bengali@latimes.com

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Grammys start out fun for song of year winner fun.

LOS ANGELES (AP) — Talk about having fun at the Grammy Awards.

Fun. won two major awards midway through the Sunday night's telecast, winning song of the year for the transcendent anthem "We Are Young," featuring Janelle Monae, and best new artist in something of an upset over Frank Ocean.

"I don't know what I was thinking when I wrote the chorus to this song," lead singer Nate Ruess, 30, joked. "This is in HD, everyone can see our faces, and we are not very young."

Fun.'s run — and a surprising victory by Gotye for record of the year — took some of the luster off Ocean's evening, but there's no question all eyes were on him as he won two awards and blew up Twitter. Only Chris Brown, with whom Ocean scuffled last month, remained seated as the 25-year-old R&B winner walked to the stage during a standing ovation. Ocean beat Brown, who attended with girlfriend Rihanna, for the urban contemporary album award that both were nominated for.

Dan Auerbach of The Black Keys appeared headed to an overall win on music's biggest night with four wins, including producer of the year.

Gotye, Jay-Z and Kanye West had three wins — sharing one award with Ocean — along with Skrillex, and a slew of nominees had two wins apiece, including former best new artist winner Esperanza Spalding.

"We Are Young" helped fun. earn a starring role at these Grammys with nominations in all four major categories after the release of their first album, matched only by Christopher Cross in 1981, and six overall. The band turned in a powerful early performance of "Carry On" as a downpour on stage began mid-song and guitarist Jack Antonoff got a kiss from girlfriend "Girls" creator Lena Dunham after winning.

But Gotye's "Somebody That I Used To Know," featuring Kimbra, was 2012's top-selling song and just as omnipresent. He also won best alternative album for "Making Mirrors" and best pop/duo performance for "Somebody." Prince presented him with the record of the year trophy and the Australian paid tribute to The Purple One's influence.

Auerbach took the early lead thanks to a strong run in the pre-telecast awards show and had only lost once midway through the night.

His Black Keys took best rock performance for "Lonely Boy" during the main telecast and earlier in the day won best rock song for "Lonely Boy" and best rock album for "El Camino" with bandmate Patrick Carney, and Auerbach was named producer of the year. He also got an assist — but no trophy — on Dr. John's best blues album "Locked Down," which he produced.

Ocean won best urban contemporary album for "channel ORANGE" and best rap/sung collaboration for "No Church in the Wild" with fellow top nominees Jay-Z and West, and The-Dream. The win came after victories for Jay-Z and West for best rap song and best rap performance for "... in Paris," another "Watch the Throne" track.

Other winners included Rihanna, Beyonce, Mumford & Sons and Taylor Swift, who opened the show as the Mad Hatter. Swift dressed in white top hat, tails, shorts and tall boots during the surreal version of her hummable hit "We Are Never Ever Getting Back Together" that included a troop of mime clowns and a guy on a tricycle with a flame-thrower attached.

The singer pretended to talk to the offending boyfriend on the phone: "I'm busy opening the Grammys and we're never getting back together."

Justin Timberlake debuted new tracks "Suit & Tie" with Jay-Z and "Pusher Love" in a performance that was broadcast in retro black and white. Rihanna and the extended Marley family paid tribute to Bob Marley. Sting and Bruno Mars helped each other out on their hits "Locked Out of Heaven" and "Walking on the Moon." Elton John and Ed Sheeran teamed on "The A Team" and Miguel and Wiz Khalifa joined forces teamed up on "Adorn." Alicia Keys played drums during Maroon 5's "Daylight," before Adam Levine's band backed her on "Girl on Fire."

Adele won the first award of the night on the main telecast, taking home best pop solo performance for "Set Fire to the Rain (Live)," in one of the night's least-surprising moments — though the singer was somewhat taken aback.

"I just wanted to be part of the night, because I loved it last year, obviously," she said of winning a record-tying six awards in 2012.

Carrie Underwood won best country solo performance for "Blown Away," Zac Brown Band won best country album for "Uncaged" and Kelly Clarkson turned in the night's most exuberant acceptance speech after winning best pop vocal album for "Stronger." After hugging much of the front row and momentarily getting stuck to Miranda Lambert's dress, Clarkson charged the stage with a giant smile.

"Miguel, I don't know who the hell you are, but we need to sing together," she said. "I mean, good God. That was the sexiest dancing I've ever seen."

Skrillex won best dance recording for "Bangarang," featuring Sirah, best dance/electronica album for "Bangarang" and best remixed recording a year after winning those same awards in his first appearance at the Grammys.

"You know what, I thought I'd get used to it, but I tripped over every word when I was up there," Skrillex said of his acceptance speeches. "I felt like I just wanted a pool of ice water and just couldn't even breathe or think. It was crazy. I think it was even crazier than last year."

Celebrities rolled down the red carpet in the early afternoon under heavy police guard during a continued manhunt for an alleged cop killer. Many stars showed a fair amount of skin despite CBS's mandate that stars dress appropriately with butts, breasts and other sensitive areas covered adequately.

Nevertheless, Jennifer Lopez showed up on stage in a dress slit all the way to her hip.

"As you can see, I read the memo," Lopez joked.

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AP writers Mesfin Fekadu, Sandy Cohen and Anthony McCartney in Los Angeles contributed to this report.

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Follow AP Music Writer Chris Talbott: http://twitter.com/Chris_Talbott.

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