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Pensions and other postretirement benefit plans
 12 Months Ended
Dec. 31, 2021
Retirement Benefits [Abstract]  
Pensions and other postretirement benefit plans
NOTE 10 — Pensions and other postretirement benefit plans

We, along with our subsidiaries, sponsor various defined benefit retirement plans, including plans established under collective bargaining agreements. Our retirement plans include: the Gannett Retirement Plan (the "GR Plan"), the Newsquest and Romanes Pension Schemes in the U.K. (the "U.K. Pension Plans"), the Newspaper Guild of Detroit Pension Plan, the George W. Prescott Publishing Company Pension Plan (the "GWP Plan") and the Times Publishing Company Defined Benefit Pension Plan (the "TPC Plan") plan. The GWP Plan was amended to freeze all future benefit accruals by December 31, 2008, except for a select group of union employees whose benefits were frozen in 2009, the GR Plan was amended to freeze all future benefit accruals by August 1, 2008, except for a select group of unions and the TPC Plan was frozen as of May 31, 2007, prior to the Company's acquisition of the TPC Plan.

The Company also maintains several postretirement medical and life insurance plans which cover certain employees. We also provide health care and life insurance benefits to certain retired employees who meet age and service requirements. Most of our retirees contribute to the cost of these benefits and retiree contributions are increased as actual benefit costs increase. The cost of providing retiree health care and life insurance benefits is actuarially determined. Our policy is to fund benefits as claims and premiums are paid. We use a December 31 measurement date for these plans.

The following table presents the change in the projected benefit obligation for the years ended December 31:

Pension benefitsPostretirement benefits
In thousands2021202020212020
Projected benefit obligation at beginning of period$3,161,146 $2,973,182 $75,586 $73,667 
Service cost2,064 2,618 89 105 
Interest cost68,139 82,581 1,758 2,315 
Change in prior service cost— 1,905 — — 
Actuarial (gain) loss(41,239)257,110 (7,936)6,648 
Foreign currency translation(7,182)38,003 — — 
Benefits and expenses paid(179,604)(187,014)(5,459)(7,149)
Settlements— (6,336)— — 
Administrative expenses— (903)— — 
Projected benefit obligation at end of period$3,003,324 $3,161,146 $64,038 $75,586 
The following table presents the change in the fair value of plan assets for the years ended December 31, and the plans’ funded status at December 31:

Pension benefitsPostretirement benefits
In thousands2021202020212020
Fair value of plan assets at beginning of period$3,225,372 $2,856,296 $— $— 
Actual return on plan assets130,026 481,311 — — 
Employer contributions52,161 41,018 5,459 7,078 
Settlements— (6,322)— — 
Benefits paid(179,604)(187,014)(5,459)(7,078)
Administrative expenses— (903)— — 
Foreign currency translation(9,002)40,986 — — 
Fair value of plan assets at end of period$3,218,953 $3,225,372 $— $— 
Funded status at end of period215,629 64,226 (64,038)(75,586)
Unrecognized actuarial (gain) loss(75,280)(69,640)(2,652)5,195 
Unrecognized prior service cost1,894 1,905 — — 
Net prepaid (accrued) benefit cost142,243 (3,509)(66,690)(70,391)

Amounts recognized in the Consolidated balance sheets at December 31, are listed below:
Pension benefitsPostretirement benefits
In thousands2021202020212020
Other assets$229,585 $95,180 $— $— 
Accounts payable and accrued liabilities332 332 5,725 6,443 
Pension and other postretirement benefit obligations13,624 30,622 58,313 69,143 
Accumulated other comprehensive (loss) income73,386 67,735 2,652 (5,195)
Net prepaid (accrued) benefit cost$142,243 $(3,509)$(66,690)$(70,391)

Accumulated pension benefit obligations were $3.0 billion and $3.2 billion as of December 31, 2021 and 2020, respectively. For the Funded plans, the fair value of plan assets exceeds the projected benefit obligation and accumulated benefit obligation. For the Underfunded plans, the projected benefit obligation and accumulated benefit obligation exceed the fair value of plan assets. Information about funded and unfunded pension plans at December 31:

Funded plansUnderfunded plans
In thousands2021202020212020
Projected benefit obligation$2,927,968 $2,957,432 $75,356 $203,714 
Accumulated benefit obligation2,925,870 2,956,973 75,356 201,755 
Fair value of plan assets3,157,553 3,052,612 61,400 172,760 

Net periodic benefit cost and amounts recognized in Other comprehensive income (loss)

The combined net pension and postretirement benefit recognized in the Consolidated statements of operations and comprehensive income (loss) was $93.2 million, $69.4 million and $8.1 million for the years ended December 31, 2021, 2020, and 2019, respectively.
The following table presents the components of net periodic benefit expense (benefit) at December 31, 2021, 2020 and 2019:
Pension benefitsPostretirement benefits
In thousands202120202019202120202019
Components of net periodic benefit cost:
Operating expenses:
Service cost - benefits earned during the period$2,064 $2,618 $999 $89 $105 $17 
Non-operating expenses:
Interest cost on benefit obligations68,139 82,581 12,408 1,758 2,315 419 
Expected return on plan assets(165,390)(157,082)(22,303)— — — 
Amortization of actuarial loss (gain)152 102 158 (88)(65)(72)
Other adjustment72 — 305 — — — 
Total non-operating (benefit) expense(97,027)(74,399)(9,432)1,670 2,250 347 
Total (benefit) expense for retirement plans$(94,963)$(71,781)$(8,433)$1,759 $2,355 $364 
Other changes in plan assets and benefit obligations recognized in Other comprehensive income:
Net actuarial loss (gain)$(5,875)$(67,119)$(12,050)$(7,936)$6,648 $(484)
Amortization of net actuarial gain (loss)(152)(102)(158)88 65 72 
Change in prior service cost— 1,905 — — — — 
Other adjustment387 2,108 (305)— — — 
(Gain) loss recognized in Other comprehensive income$(5,640)$(63,208)$(12,513)$(7,848)$6,713 $(412)

Assumptions

The following assumptions were used in connection with the Company’s actuarial valuation of its pension plans and postretirement benefit obligations at December 31 :
 Pension benefitsPostretirement benefits
2021202020212020
Weighted average discount rate2.6 %2.2 %3.0 %2.6 %
Rate of increase in future compensation levels (a)
2.0 %2.0 %N/AN/A
Current year medical trendN/AN/A6.0 %5.5 %
Ultimate year medical trendN/AN/A4.5 %4.5 %
Year of ultimate trendN/AN/A20282025
(a) Relates only to the Newspaper Guild of Detroit defined benefit pension plans.

The following assumptions were used to calculate the net periodic benefit cost for the Company’s pension plans and postretirement benefit obligations at December 31, 2021, 2020 and 2019:

 Pension benefitsPostretirement benefits
202120202019202120202019
Weighted average discount rate2.2 %2.9 %3.1 %2.6 %3.3 %3.3 %
Rate of increase in future compensation levels (a)
2.0 %2.0 %2.0 %N/AN/AN/A
Weighted average expected return on assets5.3 %5.8 %6.1 %N/AN/AN/A
Current year medical trendN/AN/AN/A6.0 %6.0 %6.1 %
Ultimate year medical trendN/AN/AN/A4.5 %4.5 %4.5 %
Year of ultimate trendN/AN/AN/A202820252035
(a) Relates only to the Newspaper Guild of Detroit defined benefit pension plans.

To determine the expected long-term rate of return on pension plan assets, the Company considers the current and expected asset allocations as well as historical and expected returns on various categories of plan assets, input from the actuaries and investment consultants, and long-term inflation assumptions. The expected allocation of pension plan assets is based on a diversified portfolio consisting of domestic and international equity securities and fixed income securities. This expected return
is then applied to the fair value of plan assets. The Company amortizes experience gains and losses, including the effects of changes in actuarial assumptions and plan provisions, over a period equal to the average future service of plan participants or over the average remaining life expectancy of inactive participants.

The fiduciaries of the pension plans set investment policies and strategies for the pension trusts. Objectives include preserving the funded status of the plan and balancing risk against return.

The weighted average target asset allocation of our plans for 2022 and allocations at the end of 2021 and 2020, by asset category, are presented in the table below:
Target allocationAllocation of plan assets
 202220212020
Equity securities20%21%36%
Debt securities65%65%50%
Alternative investments(a)
15%14%14%
Total100%100%100%
(a)Alternative investments include real estate, private equity and hedge funds.

Contributions

We are contractually obligated to contribute to our pension and postretirement benefit plans. During the year ended December 31, 2021, we contributed $52.2 million and $5.5 million to our pension and other postretirement plans, respectively, including $11 million in minimum required contributions for the GR Plan attributable to the 2019 plan year, as required by the Employee Retirement Income Security Act of 1974, and which in response to the COVID-19 pandemic, were deferred until January 4, 2021. Future contributions to our pension and postretirement benefit plans, which we are contractually obligated to contribute, are estimated to be $29.5 million in 2022. Contributions beyond 2022 are not estimated due to uncertainties regarding significant assumptions involved in estimating these contributions, such as interest rate levels, as well as the amount and timing of invested asset returns. These future contributions do not include additional contributions which may be required to meet IRS minimum funding standards as these contributions are subject to uncertainties regarding significant assumptions involved in their estimation such as interest rate levels as well as the amount and timing of invested asset returns.

Estimated Future Benefit Payments

We estimate making the following benefit payments, which reflect expected future service:
In thousands Pension benefitsPostretirement benefits
2022$195,014 $5,809 
2023190,610 5,538 
2024188,805 5,286 
2025187,365 5,016 
2026183,336 4,736 
Thereafter806,672 20,016 

The amounts above exclude the participants' share of the benefit cost. We expect no subsidy benefits for 2022 and beyond.

Multiemployer plans

The Company is a participant in six multiemployer pension plans covering certain employees with collective bargaining agreements ("CBAs"). The risks of participating in these multiemployer plans are different from single-employer plans in the following aspects:

•The Company plays no part in the management of plan investments or any other aspect of plan administration;
•Assets contributed to the multiemployer plan by one employer may be used to provide benefits to employees of other participating employers;
•If a participating employer stops contributing to the plan, the unfunded obligations of the plan may be borne by the remaining participating employers; and
•If the Company chooses to stop participating in some of its multiemployer plans, the Company may be required to pay those plans in an amount based on the unfunded status of the plan, referred to as withdrawal liability.

The Company’s participation in these plans for the year ended December 31, 2021, is outlined in the table below. The "EIN/Pension Plan Number" column provides the Employee Identification Number ("EIN") and the three-digit plan number. Unless otherwise noted, the two most recent Pension Protection Act zone statuses available are for the plans for the years ended December 31, 2021, and 2020, respectively. The zone status is based on information the Company received from the plan and is certified by the plan’s actuary. Among other factors, plans in the red zone are generally less than 65% funded; plans in the orange zone are both (i) less than 80% funded and (ii) have an accumulated/expected funding deficiency in any of the next six plan years, net of any amortization extensions; plans in the yellow zone meet either one of the criteria mentioned in the orange zone; and plans in the green zone are at least 80% funded. The "FIP/RP Status Pending/Implemented" column indicates plans for which a financial improvement plan ("FIP") or a rehabilitation plan ("RP") is either pending or has been implemented. The last column lists the expiration date(s) of the collective-bargaining agreement(s) to which the plans are subject. The Company makes all required contributions to these plans as determined under the respective CBAs. For each of the plans listed below, the Company’s contribution represented less than 5% of total contributions to the plan.
EIN/Plan number
Zone status
Year Ended
FIP/RP status
pending/implemented
Contributions (In thousands)
Surcharge imposedExpiration dates of CBAs
Pension Plan NameDecember 31, 2021December 31, 2020202120202019
CWA/ITU Negotiated Pension Plan13-6212879/001RedRedImplemented$369 $393 $51 No1/24/2021
GCIU—Employer Retirement Benefit Plan(a)
91-6024903/001RedRedImplemented63 89 75 No1/5/2022
The Newspaper Guild International Pension Plan(a)
52-1082662/001RedRedImplemented12 92 31 No10/6/2021
IAM National Pension Plan(a) (b)
51-6031295/002RedRedImplemented188 173 11 NoJanuary 8, 2022 and December 28, 2023
Teamsters Pension Trust Fund of Philadelphia and Vicinity(a)
23-1511735/001YellowYellowImplemented1,098 1,218 139 N/A(c)
Central Pension Fund of the International Union of Operating Engineers and Participating Employers(a)
36-6052390/001Green as of Jan. 31, 2021Green as of Jan. 31, 2020N/A59 59 6 N/A1/9/2022
Total$1,789 $2,024 $313 
(a)This plan has elected to utilize special amortization provisions provided under the Preservation of Access to Care for Medicare Beneficiaries and Pension Relief Act of 2010.
(b)The trustees of this plan have voluntarily elected to put the fund in critical status to strengthen its funding position.
(c)In February 2018, an interim agreement was executed to maintain the terms and contributions of the plan past the expiration date of 12/31/2017. This agreement is subject to additional negotiation.

As of December 31, 2021, the total unpaid balance for the Company's withdrawal liabilities was approximately $39.6 million, which are payable over 17.2 years.

Defined contribution plans

Effective January 1, 2021, the Gannett Co., Inc. 401(k) Savings Plan, was renamed the Gannett Media Corp. 401(k) Savings Plan (the "Gannett 401(k) Plan"). In addition, the New Media Investment Group Inc. Retirement Savings Plan (the "New Media 401(k) Plan") was merged into the Gannett 401(k) Plan and the New Media 401(k) Plan was discontinued.

Employees are immediately eligible to participate in the Gannett 401(k) Plan and can elect to save up to 75% of compensation on a pre-tax basis, subject to IRS limitations. Effective January 1, 2021, employees covered under collective bargaining agreements are eligible to participate in the Gannett 401(k) Plan only if participation has been bargained, unless previously eligible in the New Media 401(k) Plan. The plan's matching formula is 100% of the first 4% of employee contributions and 50% on the next 2% of employee contributions. Matching contributions to the Gannett 401(k) Plan, with the exception of certain employees covered under collective bargain agreements, were suspended in August 2020. Beginning on July 4, 2021 or July 5, 2021 (as applicable) matching contributions to the Gannett 401(k) Plan were reinstated with eligible pay. For the years ended December 31, 2021, 2020, and 2019, the Company's matching contributions were $8.2 million, $16.0 million and $4.9 million, respectively.